VI.—Manufacture of Island Raw Material in Auckland.

From the advantage of her position as a receiving and distributing port, Auckland is specially fitted to be the seat of manufacture of Island products, and could such industries be established on an adequate, scale they would prove of immense importance, not only as affording profitable employment to colonial labour and capital, but as solving the question of return freights from the Islands to New Zealand. At present, so far as I am aware, the only such industries prosecuted consist of the manufacture of small quantities of cocoanut oil, coffee, and dessicated cocoanut. Of these the coffee manufacture has been most successful, but even this is not conducted on any extensive scale. The duty on the raw product of 3d. per lb., levied by the New Zealand Government, greatly restricts the import of Island coffee, but if this were removed a far greater amount of coffee would be imported. The Government, who have in many ways manifested a desire to encourage trade between New Zealand and the South Sea Islands, will probably see their way to reduce or altogether abolish the tariff on raw coffee from the Islands, and thus give an impetus to the production and export of that article to this colony. If it be the case that Tonga coffee plantations are failing, because of a disease attacking the briliants, means will doubtless be found to extirpate the disease and restore production. As it does not pay to bring copra to Auckland and tranship it to England, it seems to me that an effort should be made to manufacture the cocoanut oil and feeding cake for cattle at Auckland. The surplus oil could be sent in casks to England, while a market would be found in New Zealand and Australia for the excellent food for cattle which is made from the pressed cocoanuts after the oil has been extracted. Tonga could produce large quantities of cotton, cocoa, and arrowroot, if there were a colonial market for the disposal of these products, in their raw state; and from the large quantities of these goods imported from Europe it is evident there is a local demand for the manufactured articles, which for many years to come would prove equal to the producing power of the Islands.