THE CONFERENCE.

New Zealand Herald, Volume XLIV, Issue 13483, 9 May 1907, Page 5

THE CONFERENCE.

PREFERENTIAL TRADE

QUESTION.

THE POLITICAL DANGERS.

DISRUPTING EFFECTS OF

PREFERENCE.

SPEECH BY MR. CHURCHILL.

By Telegraph.—Press Association.— Copyright.

(Keceived May 8. 10.2 p.m.)

London, May 8. At the Imperial Conference yesterday Lord Elgin said that personally he was satisfied to accept the statements of Mr. Asquith and Mr. George on the Government's attitude, but Mr. Churchill would say a few words. Mr. Churchill dealt chiefly with the attitude of the Parliamentary parties to preference and to the diplomatic aspects of the question. He said that any scheme of preference by Great Britain must contain .dangerous possibilities of mischief and prove an aggravation of political .•peril's. ■■ He could imagine nothing more injurious to the good relations of the Motherland and the colonies than the raising of bitter questions of taxation every year, which would be certain to lead to severe. criticisms of the colonies, and thus be an inexhaustible source of vexation. .

Preference was only possible by means of the taxation of six or seven of the staple articles of food and raw materials, and this the United Kingdom would never, accept. However light the duties were, they were bound to affect prices, and this the impoverished among the people would be sure to resent. Concessions bringing such results would cause sullen anger and be certain to breed unhappy consequences, besides greatly intensifying party bitterness and immensely increasing the difficulties to which already they were exposed in the discharge of Parliamentary business. Many who were now favouring preferential trade as an evidence of goodwill would then recoil from the necessary schedules of taxation. V ; ..'.; . ' - -

He appealed to the colonial delegates not to establish any Imperial relationship . that would interfere with self-government, which was the root principle of Empire, or consisting of any commercial tie formed by legislative means.

■■i He thought it was possible that good results would come from- Sir Joseph Ward's suggestions, which were a deflection from the direct question of preference. The colonies J should bluntly state what taxes pre-1 ference would impose on the Motherland. It was highly dangerous to" associate the idea of Empire in the minds of the masses with enhanced prices. If the electors ever demanded the removal of a food tax and it was found necessary to consult Go-, vernmehts scattered over the''world, the -structure of the Empire would receive a shock such as it had never before sustained. '''

_ Some day when Imperial unification had • reached higher development men would regard the decision of the Conference of 1907 as the successful avoidance of one grand wrong turn.