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NAURU AND OCEAN ISLANDS PHOSPHATE. REPORT OF SIR ALBERT ELLIS, Kt., C.M.G, NEW ZEALAND COMMISSIONER, BRITISH PHOSPHATE COMMISSION. Particulars are given herewith of operations at Nauru and Ocean Islands for the year ending 30th June, being the twentieth year since the industry came under Government ownership. The figures as stated are based on estimates so far as the current month is concerned, actual shipmentsbeing dependent on the weather experienced at the islands and other factors beyond our control. Shipments as compared with the two previous years are as follows:— 1937-38. 1938-39. Tons - Tons - (Estimate.) Nauru .. .. .. .. 836,250 924,250 932,000 Ocean Island .. .. .. 329,850 300,267 315,000 Totals .. .. .. 1,166,100 1,224,517 1,247,000 The distribution of shipments for the three years is as follows 1937-38. 1938-39. U 'iy^°' Tons. Tons. (Estimate.) United Kingdom 15,650 61,500 40,000 Australia .. .. .. 771,150 818,020 677,000 New Zealand .. .. .. 290,300 293,047 404,000 Other countries .. .. 89,000 51,950 126,000 Totals .. .. .. 1,166,100 1,224,517 1,247,000 The proportion of output coming to New Zealand is about 32-4 per cent, for the current year, as compared with 24-9 per cent, in 1937-38 and 23-93 per cent, in 1938-39. Shipments for the year are again in advance of any previous year, and the satisfactory figures have been reached under difficult conditions, as the weather experienced has been the worst for more than ten years, both as regards adverse westerly gales and heavy rainfall, the latter causing difficulty with the artificial drying of the phosphate. Though unavoidable delay took place in the shipping operations at times, no accidents occurred, other than the recent carrying-away of one of the sets of deep-sea moorings at Nauru. It is hoped that this can be relaid shortly. It will be noted from above figures that 404,000 tons have been shipped to the Dominion for the year, more than 100,000 tons in excess of previous shipments. To some extent this quantity consists of special war reserve stocks which are being established at the various manufacturing centres. These should amount to 75,000 tons by 30th June. A number of the Commission's chartered vessels have been requisitioned for the transport of food and munitions to Britain ; the replacing of these has been difficult, and attended with largely increased costs of freight. Fortunately, it lias not been found necessary to take the four vessels owned by the Commission, and which were specially built for the trade. They continue to render excellent service. In addition to increased chartering rates there are other unavoidable war expenses, but the industry has not been affected in the Dominion as much as in other countries so far as the cost of phosphate is concerned. During the year under review the health of many of the labourers at the islands has not been good at times, and there was also some labour trouble among a section of the islanders not in any way attributable to the war. Generally speaking, the attitude of the whole community there has been most satisfactory throughout, and the good results attained for the year's work are largely through, special efforts put forth in recognition of the exigencies of these times.

Approximate Cost of Paper.—Preparation, not given ; printing (710 copies), £55 103.

Authority: E. V. Paul, Government Printer, Wellington.—l94o.

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