PREFERENTIAL TRADE.

Auckland Star, Volume XXXVIII, Issue 169, 17 July 1907, Page 5

PREFERENTIAL TRADE.

Censare Motion Lost.

LONDON, July 16

In the House of Commons, Mr. Alfred Lyttelton moved his vote of censure, as follows:—

That the House regrets that the Government has declined the invitation unanimously preferred by the Prime Ministers of the selfgoverning colonies to consider favourably any form of colonial preference, or measure, for the closer commercial union of the Empire on a preferential basis.

Mr. Lytterton complained that the Colonial Premiers' proposals had met with unqualified rejection at the hands of the Government. He congratulated Mr. Lloyd-George (President of the Board of Trade) on scattering to the winds at the Conference the argument that a commercial tie was a sordid bond.

Continuing, Mr. Lyttelton insisted that preference would stimulate intercourse with the colonies, remove many difficulties in the foreign policy, and j promote consistency and coherence by transforming divergent into common interests. It would also increase the power of the colonies to help to bear the burden of Empire.

Mr. Soares then moved the following amendment: —

That the permanent unity of the Empire will not be secured through a system of preferential duties based On the protective taxation of food.

The Under-Seeretary for the Colonies (Mr. Winston Churchill) said it was curious to censure the Government for keeping election promises. Really the motion v.as only the cry of petulant vexation. It was idle to discuss preference without definite proposals showing what it was contemplated to tax. He asked — Did the Opposition adhere to protective duties enumerated by Mr. Chamberlain in 1903?

If the preference were given on existing dutiable articles, added Mr. Churchill, how would the gap in the revenue be filled up? Such a system of preference would introduce the vicious feature of discrimination between one class of producers and another. A fiscal revolution involving taxes on the necessaries of life would be certain to create an anti-eolonia] party in Britain.

Mr. Balfour declared that nobody desired a protective duty on food. If colonial preference were returned, the valucble colonial concessions already granted would bs largely increased. It would be very rash to slam the door in the face of the colonies. It would be wiser to make some immediate sacrifice, though he did not believe any were required. Since it was imperative to broaden the basis of taxation, new taxes should be used for the purpose of giving colonial preference.

The Chancellor of the Exchequer (Mr. H. H. Asquith) categorically asked Mr. Balfour if he would tax corn, meat, wool, and butter, and, he added, that since there was no answer forthcoming he would leave the matter there. Mr. Lyttelton's motion was finally rejected on the following division: — For the motion 11l Against 404 Mr. Soares' amendment was then carried without division, the Liberals loudly cheering.

(Received 7.02 a.m.)

LONDON, July 16. During the debate on Mr. Lyttelton's motion, the President of the Board of {Trade (Mr. Lloyd-George) declared that in the last few years British trade had increased considerably, more even in protected markets than in colonial markets. ;He ridiculed the idea that the colonies ■ would be content with a little preference as regarded wine, tobacco, and Canadian whisky, and added that if the tariff re formers" proposals were accepted one democracy in the Empire would be preyi ing upon another.