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 enlisted
 locally and at a low remuneration,
 while the turnover of the organizations
 properly constituted warrants
the employment of the best men available.
 ‘We have been struck by the fact
that private is apt to be more successful
 than co-operative enterprise in
handling agricultural products.
7. We have found that costs of distribution
 as well as of production are
excessive; and we have had many instances
 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 emphasis
 on the problems of the promotion
 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 Empire
 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 quanity
 of goods should be available for
she export market. If there is a
seasonal decline in the output, deiveries
 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 compensating
 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 employng
 the highest grade of salesmen
should be set up there, preferably outside
 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 deelop
 a real export business in agrizultural
 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. Australia
 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