3f 
but we believe that hy no means all of 
these organizations are operated with 
full efficiency and also that there are 
many more of them than is necessary 
for or in the best interests of the 
industries concerned. Co-operative 
organizations are prone to carry on 
with a controlling staff usually en- 
listed locally and at a low remunera- 
tion, while the turnover of the organi- 
zations properly constituted warrants 
the employment of the best men avail- 
able. ‘We have been struck by the fact 
that private is apt to be more success- 
ful than co-operative enterprise in 
handling agricultural products. 
7. We have found that costs of dis- 
tribution as well as of production are 
excessive; and we have had many in- 
stances given wus of higher freight 
charges for similar goods between 
Australian ports than between Great 
Britain and Australian ports. 
8. We find that the requirements of 
the markets for evenness of quality are 
being studied, but we do not consider 
that the amount or the kind of work 
that is necessary to create and hold 
an export market has been fully 
realized. 
9. The Australian policy has been 
in the past to look primarily to the 
home market and to export only a 
surplus giving the easier home market 
preference in marketing service. It is 
not possible to create an export market 
by these means. First, on account of 
high costs of production the attention 
of producers should be directed to 
quality ~~ vather than quantity. 
Secondly, an export market should be 
Gi. Recrprocan TRADE BETWEED 
1. Our terms of reference lay em- 
phasis on the problems of the pro- 
motion of trade and commerce between 
Great Britain and Australia. 
2. We recognize that reciprocal 
trade in the widest sense is a necessity 
for the sound economic development 
of each nation, and as such should 
be fostered by any practical means 
and at any justifiable cost. 
3. Both nations desire to strengthen 
the world position of the British Em- 
pire and to develop and conserve the 
wealth produced from its resources for 
treated on the basis of a demand for 
Australian goods as such because of 
their high grade and constant quality. 
We find that Australian goods often 
ose their identity in the British 
narket, and yet Australian butter and 
Tuit are equal to the best from other 
jountries. Thirdly, a constant quan- 
ity of goods should be available for 
she export market. If there is a 
seasonal decline in the output, de- 
iveries should be curtailed to the 
lome rather than to the export 
narket. The higher price obtained on 
‘he home market, due to the stronger 
lemand, would go towards compensa- 
ting producers for the smaller output. 
Fourthly, if there is a seasonal glut, 
are should be taken to maintain the 
standard of quality, and any surplus 
>f lower grade should be sold as such 
wind preferably not marketed as 
Australian goods. 
10. Great Britain is probably the 
sest market for the products under 
:onsideration, and therefore the best 
sossible selling organization employ- 
ng the highest grade of salesmen 
should be set up there, preferably out- 
side all Government control. At the 
same time there are markets nearer 
‘0 Australia, and we recommend that 
heir exploitation should be under- 
.aken by, the best men available under 
he instructions of the organizations 
of the industries concerned. But we 
lo not believe that Australia can de- 
elop a real export business in agri- 
zultural products unless the cost of 
production and delivery can le 
brought down to world prices for an 
qual quality of goods. 
AUSTRALIA AND GREAT BRITAIN. 
the benefit of the British races. Aus- 
tralia must increase her population for 
political and economic reasons, and has 
adopted a policy of maintaining 2 
purely British stock; Great Britain 
1as a surplus population, and wishes 
bo find the best outlet for it. 
4. Tt is essential for Australia to 
sstablish a reliable and sympathetic 
market for her primary and agricul 
tural products, while Great Britain 
must develop similar markets for her 
creat diversity of manufactured goods. 
The most promising market for