H.—44,

TRADE WITH JAPAN. Table XXVI hereunder shows the figures for the past seven years for trade between this country and Japan : —

Table XXVI.—Total Trade with Japan.

Imports from Japan consist of silk and artificial piece-goods, £308,220 (£431,618) ; cotton, linen, and canvas piece-goods, £206,335 (£250,126) ; fancy goods, £57,012 (£62,900); articles made from textiles, £57,592 (£54,771) ; and sulphur, £49,542 (£131,522). Table XXVII below sets out the principal exports to Japan, and shows the large fall in value of every item listed, the fall for wool alone being £2,227,794.

Table XXVII.—Principal Exports to Japan.

TRADE TREATIES. The only trade arrangement concluded by the Government during the year was that with Switzerland, which by the Trade Arrangement (New Zealand and Switzerland) Order 1938 came into force on the sth May, 1938. This arrangement was to the effect that the duties provided for by the Trade Arrangement (New Zealand and Belgium) Ratification Act, 1933 (as modified by an Order in Council made on the 28th August, 1936), in respect of goods being the produce or manufacture of the economic union of Belgium and Luxemburg, and the duties provided for by the Trade Agreement (New Zealand and Germany) Ratification Act, 1937, in respect of goods the produce or manufacture of Germany, were applied to similar goods the produce or manufacture of Switzerland. In return for the concessions granted by New Zealand, the Swiss Government guaranteed a quota for the importation of New Zealand apples and pears into Switzerland to the extent of 1,500 metric tons per annum. In addition, the Government of Switzerland undertook, in matters of granting import permits and the fees therefor for New Zealand products, treatment not less favourable than that accorded to similar products of the most-favoured foreign country. OVERSEAS TRADE REPRESENTATION. The Government of New Zealand is represented in overseas countries by the High Commissioner for New Zealand in London, and by New Zealand Trade and Tourist Commissioners in Canada, Australia, and Europe. In addition, there are a number of honorary representatives of the New Zealand Government resident in overseas countries who perform very many useful services on behalf of the Government and in the direction of developing New Zealand's export trade. The Trade Commissioners provide information to New Zealand exporters on the present and potential demand for various types of goods, competition in their respective markets, duties and Customs regulations, quotas, exchange requirements, &c., selling methods, finance arrangements, the standing of importers, and general information about trade opportunities. In the past, many New Zealand firms have developed very profitable trade as a result of the work done by the Trade Commissioners and honorary representatives.

15

Year ended 31 at December, Total Trade. Exports to Japan. I m P™t3^fr° m E Exports Tta £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) 1932 .. .. .. .. 714,799 236,799 478,000 241,201 1933 .. .. .. .. 1,031,463 354,462 677,000 322,538 1934 .. .. .. .. 1,692,014 856,014 836,000 20,014* 1935 .. .. .. .. 1,532,150 432,000 1,100,150 668,150 1936 .. .. .. .. 2,883,036 1,554,837 1,328,199 226,638* 1937 .. .. .. .. 4,761,177 3,131,986 1,629,191 1,502,795* 1938 .. .. .. .. 1,800,899 592,714- 1,208,185 615,471 * Excess of exports over imports.

Commodity. 1935. ! 1936. 1937. 1938. £(N.Z.) £(N.Z.) £(N.Z.) £(N.Z.) Wool .. .. .. .. 241,697 1,265,836 2,705,946 478,152 Casein .. .. .. .. 128,667 142,381 173,257 56,254 Tallow.. .. .. .. 8,536 49,865 62,082 4,405 Butter .. .. .. .. 446 469 24,928 11 Hides, pelts, and skins .. .. 27,016 48,376 54,318 24,210 Scrap metal .. .. .. 18,990 24,870 56,727 Frozen meat .. .. .. 377 10,131 8,323 1,674