Because of my Government's increased concern with events in
South-East Asia, there has been a consolidation and expansion of
New Zealand's activities in that area. The appointment has been
made of a New Zealand Commissioner in South-East Asia, with an
office in Singapore, and a further post is shortly to be set up in
Thailand. It is expected that a diplomatic mission will be established
by Thailand in New Zealand. The Colombo Plan continues to command
the full support of my Ministers, who are satisfied that the Plan has
not only been a valuable supplement to the efforts being made by
the Asian people themselves in raising living standards, but is also
an outstanding example of co-operation between countries inside and
outside Asia.

My Advisers believe, however, that the Colombo Plan and similar
programmes for economic development can be carried out with full
effectiveness only in conditions of peace and stability. New Zealand
cannot remain indifferent to the aggressive challenge which faces the
free nations of the area, and my Government has therefore taken an
active part in the development of the South-East Asia Treaty
Organisation.

As a further contribution to the effectiveness of the Treaty, and
in accordance with its Commonwealth defence commitments, my
Government has provided units of our naval, army, and air forces
for service in the SEATO area.

Developments in Asia have not diminished my Ministers' interest
in Europe and the Middle East nor their recognition of the importance
these areas must continue to hold for New Zealand and the
Commonwealth.

New Zealand's two-year term on the Security Council has now
expired, but my Ministers retain their special interest in the United
Nations, which, they believe, remains the best means of building up
the understanding and common purpose so essential to an enduring
peace.

New Zealand's economy continues to expand in all fields of activity.
Primary production continues to rise, notwithstanding a prolonged
spell of dry weather in the South Island, which has called for special
measures. The numbers of livestock are increasing at a very satisfactory
rate and our primary industry is soundly organised to meet the
requirements of our growing population. The development of Crown
land for farming purposes continues, and finance is available through
the Marginal Lands Board to assist in the development of occupied
farm properties which are not at present reasonably economic and
where the normal avenues of rural financing are not suitable. Aerial
topdressing of our farm lands continues to increase at a rapid rate
and will reach almost 3 million acres this year compared with less
than 50,000 acres six years ago. This great expansion will result in
considerably increased production as the full effects of aerial top-
dressing are felt.

It was in keeping with New Zealand's position in the field of
world agricultural production and trade that my Minister of
Agriculture, the Right Honourable Mr Holyoake, was appointed
Chairman of the recent conference in Rome of the United Nations
Food and Agriculture Organisation. This conference gave special
consideration to the difficult problem of agricultural surpluses, a matter
which receives the continuing attention of my Government.

My Ministers are gratified at the successful culmination of the
Tasman pulp and paper project at Kawerau. The pulp and news-
print mills have been operating for some months, and the sawmill
recently came into partial operation. Before the end of 1955 many
New Zealand newspapers published complete editions on Tasman
newsprint. During the coming year products from the mills will be