Sydney is a first-class naval station, and the headquarters of the British fleet in Australasia. Under the naval agreement of 1903 there is a Colonial contribution of two hundred thousand pounds annually for ten years, terminable at two years' notice after the eighth year. The naval force on the Australian station consists of one first, two second, and four third class cruisers and four sloops. A branch of the Royal Naval Reserve has been formed in Australia, consisting of twenty-five officers, seven hundred men, and four of the ships (the other ships being kept in commission), to be manned by sixteen hundred Australians and New Zealanders, who are paid at Australian rates.

On June 30, 1903, the naval forces of the Commonwealth totalled 1,052, comprised as under :

Throughout the Commonwealth there are uniform customs duties, except that on goods not originally imported from beyond the limits of the Commonwealth, duties are levied on their passing into Western Australia. These duties, however, diminish annually by one-fifth, and will be entirely abolished by October 8, 1906.

The Commonwealth import duties are levied on articles of almost every sort, the chief exceptions being raw materials and some manufactured articles for use in agriculture, in the industries, and in shipping, and also for educational, surgical, and hygienic purposes. On woollen yarns a duty of 5 per cent. ad valorem is levied. On cotton, linen, silk, and woollen tissues the duties range from 5 to 25 per cent. ad valorem, but some articles are exempt. On metal work there are in some cases specific duties, in others ad valorem duties of 10 to 20 per cent,, but there are long lists of rough iron wares and of machinery and tools which are free. On earthenware there are duties of 15 to 25 per cent., but crucibles, &c., are free; on wood and wooden wares 15 to 20 per cent., but in some cases the duties are specific, while rough wood and some manufactures of wood are free. On furniture a duty of 20 per cent. ad valorem is levied. Specific duties are levied on most food stuffs, the chief exceptions being tea and frozen meat. Living animals are untaxed. leather wares the duty is 20 per cent., but on boots 15 to 30 per cent. ad valorem. Coal is free, but coke is taxed. For 1903 the net customs revenue collected amounted to 7,720, 1437., besides 205, 625l. from special duties in Western Australia.

On

The following table shows for 5 years the value of the imports and exports (merchandise, bullion, and specie) into or from the Australian Commonwealth from or into countries outside the Commonwealth. The figures, however, are not final; for the years 1899-1902 they are only approximate;

for 1903, as regards imports a correction extending over 8 months has still to be introduced, but for that year the exports are correctly stated:

The value of goods imported represents the amount on which duty is payable or would be payable if the duty were ad valorem. The value of goods subject to duty is taken to be the fair market value in the principal markets of the country whence the same were exported, with an addition of 10 per cent. to such market value. The duties charged on imports are collected under the Commonwealth of Australia Customs Act, 1901, and the Customs Tariff, 1902.

The value of goods exported is the value in the principal markets of the Commonwealth in the usual and ordinary commercial acceptation of the

term.

The more important imports and exports (Australian produce) in 1903

The distribution of the external trade of the Commonwealth, as regards British and foreign countries, was as follows in 1903 :

The imports from, and exports (general) to, the more important countries which have commercial intercourse with Australia were as follows in 1902 and 1903

In 1903 the imports into, and exports (general, exclusive of interState trade) from, each of the States of the Commonwealth were of the value shown in the following table :—

The following table shows (according to the Board of Trade returns) the value of the imports into the United Kingdom from the Commonwealth, and of the domestic exports from the United Kingdom to the Commonwealth during the five years :

Imports 23,622,371 23,800,820 24,217,669 19,734,017 17,057,527 Exports 17,957,156 21,575,828 21,356,491 19,530,118 16,144,438

The foreign and colonial merchandise exported from the United Kingdom to the Commonwealth amounted in 1901 to 2,157,1717.; in 1902 to 1,999,2887.; in 1903 to 1,984,9317.

The following tables show the principal imports into the United Kingdom from, and domestic exports from, the United Kingdom to the Commonwealth in the four years:

The quantities of wheat, wool, and meat imported from Australia into the United Kingdom in four years were :—

The official statements of United States commerce do not distinguish between British Australia and other British possessions in the Pacific. The imports into and exports from the United States from and to Australasia (including New Zealand, Fiji, &c.), according to United States statistics, in the last 3 years, ending June 30, were valued as follows, in U.S. dollars:

In 1903 the chief imports into the United States from Australasia were wool, 3,067,139 dollars; hides and skins, 1,172,475 dollars; coal, 776,856 dollars. The chief exports from the United States to Australasia were wheat, 4,215,784 dollars; wheat flour, 2,073,835 dollars; machinery, 2,701,641 dollars; mineral oil, 2,650,260 dollars; wood-work and timber, 2,016,645 dollars; paper, 1,404, 155 dollars.

Posts and Telegraphs.

In the following table will be found a statement showing postal and telegraph business for the Commonwealth for 1903. As the letters, newspapers, and telegrams are counted both in the despatching and receiving States, a second total is given from which the excess has been excluded: