3. The butter shall before shipment be examined and graded in a Government grading-store in accordance with the usual course of trade, and may be rejected as not being of good merchantable quality and condition, or as not being in conformity with the terms and conditions of the contract in other respects.

4. The butter shall be shipped in good and merchantable condition at a customary grading port on board ocean steamer for direct carriage to the United Kingdom, and shall be consigned to His Majesty's Government in the name of the Butter and Cheese Imports Committee, London, or in such other manner as the Controller of the Department of Imperial Government Supplies at Wellington (hereinafter referred to as “the Controller”) may from time to time direct: Provided that in any case the Government may permit butter to be shipped at a customary grading port for carriage to and transhipment at another customary grading port on through bills of lading.

5. The bills of lading and grade-notes for all butter so shipped shall be delivered by the shipper to the Controller.

6. In respect of all loss or damage from fire or other cause whatsoever the butter shall be at the risk of the seller until it is shipped in manner aforesaid.

7. The butter so shipped and consigned to His Majesty's Government shall become the property of and be at the risk of His Majesty on shipment as aforesaid, and shall be paid for as soon as the bills of lading and grade-notes have been delivered to the Controller; and a contract of sale and purchase on the terms and conditions herein set forth shall be deemed to be constituted by such shipment and consignment.

8. The butter when manufactured shall not contain less than $1 \frac{1}{2}$ per cent. or more than 2 per cent. of salt.

9. All butter supplied shall be free from adulteration of whatever nature, and the proportion of moisture shall not exceed 16 per cent.

10. In the case of creamery, whey, and milled butter, each box shall contain $56 \frac{1}{2} \mathrm{lb}$. weight of butter, including the weight of the enveloping parchment, and the net weight of the butter shall be charged and paid for as 56 lb. only. In the case of dairy butter, the weight of butter contained in each box, including the weight of the enveloping parchment, shall be $\frac{1}{2} \mathrm{lb}$. in excess of the weight marked on the box, but the butter shall be charged and paid for on the marked weight.

11. All butter shall be packed in new export boxes made of thoroughly seasoned timber, lined with genuine vegetable parchment of double thickness, properly packed and secured.

12. The boxes are to be branded in such manner as may be indicated by the Director of the Dairy-produce Division of the Department of Agriculture.

13. No creamery butter or whey butter will be purchased by the Government except from the manufacturer thereof.

14. $(a .)$ If by reason of shipping-space being insufficient or for any other reason it is impossible for the manufacturer of any butter to effect shipment thereof in accordance with the foregoing provisions within fourteen days after the receipt thereof in a Government grading-store, the Government will, on demand, make to the manufacturer an advance equal to $90$ per cent. of the value of that butter on the terms and conditions following.

$(b .)$ Such advance shall be repayable on demand, and shall bear no interest.

$(c)$ Such advance shall be secured by the delivery to the Government of the store-warrants for the butter in respect of which it is made.

$(d .)$ No such advance shall be made except on the certificate of the Government Grader that the butter is fit for purchase by the Government in accordance with the foregoing provisions.

(e.) No such advance shall be made until and unless the Controller is satisfied that the butter is covered by insurance against fire to the full extent of the advance in the name of the Crown.

(f.) Every manufacturer who accepts any such advance shall at all times prior to shipment of the butter in manner aforesaid keep the same duly insured against fire to the full extent of the advance in the name of the Crown and to the satisfaction of the Controller.

(g.) The acceptance of any such advance shall be deemed to constitute a contract between the Government and the manufacturer for the purchase and sale of the butter in accordance with the foregoing provisions and for its shipment in manner aforesaid as