V.—Extension of Trade with New Zealand.

Although New Zealand carries on a large and increasing trade with Tonga, I am satisfied, from what I saw and heard, that this is capable of greater expansion. Thus, large imports of Adelaide flour come by way of Sydney, along with potatoes, onions, etc., while biscuits, timber, flour, etc., are imported from San Francisco, all of which might be supplied by New Zealand. Importers, of course, are prepared with reasons for their action, and it is for page 16 New Zealand producers and exporters to judge how far these are disingenuous, and what steps should be taken to overcome the obstacles to trade. It is alleged, for instance, that biscuits are supplied at a much lower rate by San Francisco than by New Zealand merchants—so much so, that the additional freight of £1 per ton is cheerfully paid. Redwood from California is preferred because it withstands the climate and insect pests much better than kauri, and there are also complaints that some Auckland timber companies send down kauri of most inferior quality. Californian doors and sashes are also preferred on the score of superiority. New Zealand prices are also said to be high. Californian redwood, dressed, costs 5 cents per foot from the ship's side, and 2½ cents per foot rough; while kauri is charged 6 cents per foot for dressed and 4½ to 5 cents rough. Onions from Sydney are said to be landed 200 per cent, cheaper than from Auckland; potatoes also are cheaper from Sydney. This, if true, seems inexplicable, when it is remembered that New Zealand annually sends large quantities of onions and potatoes to the Sydney market. New Zealand flour is objected to because it is damp and difficult to work, and does not keep well. Some of the flour got from Sydney is kilndried, and fetches 10s. per ton extra. Freights from Sydney are stated to be about the same as from Auckland, though the former is 21 days' and the latter only 7 days' sail from Tonga. Mr. Treskow, head of the German Trading Company at Tonga, had a more encouraging tale to tell. He stated that he used to import a great deal of goods from Sydney, chiefly breadstuff's, but he had lately started to get them from New Zealand instead. He found the New Zealand goods of superior quality, and he believed he was now the largest importer of New Zealand produce in Tonga. Flour he imported chiefly in 50lb. and 100lb. bags, paying £15 to £18 and sometimes as high as £20 per ton. Auckland biscuits cost 10s. per 50lb. tin delivered, while Californian biscuits cost from £18 to £20 per ton at San Francisco. Flour is most wanted from August to March, when the native food is usually scarce. Return freights to New Zealand are difficult to obtain, as it is found more economical to ship the copra direct to Europe. If Tonga were made the last port of call of the mail steamer before coming to Auckland, an export trade in fruit, etc., could be developed. From March to August cargoes of oranges could be got at Vavau, and these oranges are said to be of the best quality in the Pacific, after those of Tahiti and Rarotonga. While the regular running of the Janet Nicoll will tend to develop New Zealand trade, it must not be forgotten that the uniform freights adopted for all the New Zealand ports will bring the large producing centres of the South Island in direct competition with Auckland, which has hitherto almost monopolised the trade. The South Island delegates, I learned, were quoting almost fabulous prices for flour, which page 17 they declared to be of first-class quality, and they also made special inquiries as to the opening for refrigerated meat. For the latter, I may say, there would be no market in Tonga. The Auckland tinned meats are in great demand, and so long as the quality is maintained may be trusted to keep all others out of the market. The Napier delegate was, however, distributing samples of Hawke's Bay tinned meat and quoting prices.