H.—3o.

LINEN FLAX. The annual report for 1941 sets out the terms of sale to the United Kingdom Ministry of Supply of New Zealand's export production of linen-flax fibre, this covering the period of hostilities between the British Empire and Germany. Shipments from Ist August, 1941, to 31st July, 1942, were 3,013 bales of linen-flax fibre and 1,918 bales of tow and pluckings, of a total weight of 926 tons 10 cwt., valued f.o.b. at £129,097 4s. 7d. (New Zealand currency). Sales of linen-flax seed were effected of 24,254 sacks, weighing 2,165 tons 8 cwt., valued f.o.b. at £47,933 12s. 2d. (New Zealand currency). SCHEELITE. The agreement with the United Kingdom Ministry of Supply for the sale of New Zealand's output of scheelite was renewed from Ist April, 1942, for a two-year period ending 31st March, 1944. The purchase-price payable by the United Kingdom Government was increased to 120s. sterling per unit and per ton, on the understanding that every effort would be made by New Zealand to substantially increase the production of scheelite. Other terms and conditions of sale were unchanged from those set out in the Department's annual report for 1940. The quantity of scheelite purchased by the Department for the twelve months ending 31st July, 1942, was 77 tons 16 cwt., and the provisional payment in New Zealand currency is £26,766. SUNDRY SUPPLIES FOR WAR OFFICE. As mentioned in the 1941 annual report, sundry foodstuffs have been supplied under contract to the War Office, mainly canned meats, service biscuits, oatmeal, and processed cheese. The value of the products shipped during the twelve months ending 31st July, 1942, is £(N.Z.)1,119,640. The accounts covering the purchase and sale transactions of the Department in connection with these United Kingdom War Office supplies are shown in the accounts section at the end of this report page 25. The deficit for the year ended 31st July, 1942, is £332.

SUMMARY OF VOLUME AND VALUE OF SALES BY THE DEPARTMENT OF PRODUCTS FOR EXPORT FOR THE TWELVE MONTHS ENDED 31ST JULY, 1942.

Note. —The volume and values of butter, cheese, frozen and canned meats includes produce paid for but not shipped at 31st July, 1942. GENERAL. In. presenting this report covering the operations of the Export Division of the Department for the year ended 31st July, 1942, it is pleasing to record that the arrangements of the 1941-42 season in respect of production, handling, payment, and shipment of the various products have proceeded smoothly, and all interests concerned have co-operated in meeting the difficulties inherent in the present war situation. I wish to tender the thanks of the Government to the farming industry, the manufacturing interests, the storage and transport interests, the handling and loading interests, and the shipping interests for maintaining so satisfactorily their respective services. I desire again to pay tribute to the officers and men of the Mercantile Marine and the Eoyal Navy who have been responsible for the transport of the large volume of exports from New Zealand and for the very satisfactory clearances of all export products which have been made. Finally, I wish to mention Government representatives in the United Kingdom and the New Zealand staff of the Export Division of the Marketing Department. They have carried out their increased duties most efficiently, notwithstanding the staff and other difficulties of the present situation. Minister of Marketing.

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Product. Volume. Equivalent Weight ■ Value f.o.b. (in Tons). (N.Z. Currency). £ Butter .. .. .. .. 4,620,942 boxes 115,524 16,209,429 Cheese .. .. .. .. 2,164,334 crates 154,595 13,330,120 Frozen meat .. .. .. .. 400,616 22,993,192 Wool* .. .. .. .. 929,618 bales 141,771 18,220,137 Tallow .. .. .. .. .. 45,905 1,178,767 Woolly sheep-skins .. .. 962,367 skins 3,343 347,052 Canned meats .. .. .. .. 13,587 1,371,906 Scheelite .. .. .. .. 78 26,766 Skim-milk powder .. .. 94,933 cases 4,746 214,007 Evaporated milk .. .. .. 124,590 cases 2,670 153,440 Linen-flax fibre .. .. .. 4,931 bales 927 129,097 Linen-flax seed .. .. .. 24,254 sacks 2,165 47,934 War Office contracts .. .. .. .. 1,306,825 Hides .. .. .. .. 53,513 hides .. 104,374 Totals .. .. .. .. 885,927 75,633,046 * Totals of wool appraised for twelve months to 30th June, 1942, at f.o.b. value.