law which governs the extradition of fugitive offenders in the
Commonwealth and a Bill will be introduced to implement the 1963
Vienna Convention on Consular Relations.

Honourable Members, provision for the defence and national
security of New Zealand remains a fundamental obligation calling
for long-term planning but with due regard for what is economic-
ally feasible for a country of this size. Despite the necessity to accept
restraints in all areas of Government activity New Zealand has
assured its Allies that it intends to honour its obligations although
the character of our commitments may change from time to time.
In seeking a modern and efficient form of defence organisation
tailored to New Zealand needs my Government intends to introduce
this Session two comprehensive Bills, a Defence Bill and the Armed
Forces Discipline Bill which will consolidate last year's far-reaching
reorganisation of Defence machinery.

Honourable Members, my Government is greatly concerned with
the effect of the increases in farmers' costs because these increases
cannot be recovered from export market sales. This has meant a
fall in the farmer's net income and consequently a drop in the
amount he is able to reinvest in farm development. This in turn
will result in a slowing down in the rate of growth which must
impair our ability to attain the National Development Conference
production targets.

A detailed examination of the economic position of farming
was undertaken last year by the Agricultural Production Council
which was very helpful in framing the measures designed to assist
farming, contained in the 1970 Budget. The Production Council
is bringing up to date the material in this survey and intends
making further recommendations to my Government.

My Government's basic objectives, which are shared by the
farming community, are to help to ensure that farming remains a
viable business, yet able to adapt itself to changing circumstances.
Despite the present need for measures of restraint the longer term
aim to diversify the New Zealand economy continues to be
followed by my Government including the encouragement of
industries directed to both the domestic and export markets. The
establishment of a basic steel industry is moving steadily forward
and the production of primary aluminium at Bluff is expected to
begin later this year. The recent decisions by international motor
corporations to establish plants for the manufacture of components
for export is indicative of the growing strength of the manufac-
turing sector of the economy.

Late last year agreement was reached on the use of timber from
the Kaingaroa Forest in a mill to be established in Hawke's Bay
for the production of sawn timber and refiner groundwood pulp
for export to Japan. Plans are also well advanced for very sub-
stantial additions to the production of existing plants involving a
capital investment of nearly $200 million.

Exports of manufactured goods have exceeded the National
Development Conference targets and my Government and com-
mercial interests will continue their working partnership to promote
sales overseas. This year my Government is sponsoring a number
of trade promotions particularly in Australia. Plans have been made
to expand export sales by trade missions, trade tours and the efforts
of many individual exporters.

The tourist industry continues to make a valuable contribution to
the economy and my Ministers have been pleased to note that for