REPLY OF MR. DEAKIN.

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

REPLY OF MR. DEAKIN.

IMAGINATION RUN RIOT. SERIES' OF ECONOMIC / ASSUMPTIONS. London, May 8. Mr. Deakin, replying to Mr. Churchill, said he thought be had allowed his imagination to run riot in an unnecessarily alarmist fashion. Even if no preference were conceded questions of taxation must constantly arise in every Legislature of the Empire without such destructive results as Mi*. Churchill had extravagantly pictured. The House of Commons would deal with the business on its merits and adapt the constitutional machinery to the country's circumstances instead of making the States' development fit the measure of a mere standing order. He challenged the whole tenour of Mr. Churchill's arguments because it was based on a series of economic assumptions only applicable to particular circumstances and entirely inapplicable to the actual facts of business competition, especially as. reflected by national rivalry. Colonial Parliamentary experience showed that the dangers Mr. Churchill had predicted were not very grave. Mr. Asquith and Mr. Churchill had anathematised everything which even in infinitesimal degree conflicted with the principles they held to be orthodox. He believed the only safe method in practical politics was to apply economic maxims experimentally and be governed by experience. Mr. Churchill's doctrine would be fatal to all discussion of , the Imperial commercial relations. It would mean no preference within the Empire, no commercial treaties outside the Empire, and no negotiations for the most-favoured-treatment. This involved absolute isolation of Great Britain, which would be treated as a sick man who kept to his invalid chair because if he tried to make progress he must run the risk of hurting himself. If the British Government proposed free trade, within the Empire, combined with a tariff wall against the outside world, Australia would consider it with an open mind. ( Personally he regarded improved cable and steam communication and the proposed commercial agencies as all part of 'a system, and preferential trade covered them all. Mr. Churchill left before Mr. Deakin's sarcastic speech had concluded in order to be sworn in as a Privy Councillor. RESOLUTIONS DEALT WITH. Sir Wilfrid Laurier said he preferred to reaffirm the resolutions of 1902 to adopting Mr. Deakin's,

though he concurred with the first of Mr. Deakin's two additional resolutions. He stated that: preference had certainly increased the trade of Canada and Great Britain. ,He admitted the absolute right of Great Britain to adopt whatever fiscal system best suited : her internal conditions, and added that he would be glad to apply Canada's lower tariff with preference concessions to all the British colonies. There was no justification on the ground of sanitation in continuing the injustice of excluding Canadian live cattle. Mr. Asq uith promised that the Board of Agriculture should 'seriously consider this subject. Mr. Deakin, to save time and to secure unanimity, agreed to accept the old form resolution 4 of 1902 instead of the rather simpler resolution he had submitted.

Lord Elgin recorded the Government's reservation, and said he saw no way of giving effect to the preferential resolutions of 1902 by any alteration of the fiscal system of the United Kingdom, Sir Wilfrid Laurier's motion of reaffirmation was carried, subject to Lord Elgin's reservation. Dr. Jameson again moved his postponed resolution, and it is to be submitted on Monday. Mr. Asquith said he thought the resolution ought to be omitted, having been already dealt with. Mr. Botha and the other British delegates . supported this view, but the other delegates dissented. •'

n Dr. Jamesons resolution is as follows:—ioTvo - wslile affirm the resolution of the 1902 Conference, it is considered that as British goods'through the South African Customs Union are allowed preference against foreigners, also in Canada, Australia, and New Zealand, and all other British possessions which have granted reciprocity, the British Government should now take into consideration the granting of like preference to all portions of the Empire on present dutiable articles in the British tariff."

The resolutions passed by the Conference of 1902, which have been reaffirmed by the present Conference, are as follows: — 1. " That this Conference recognises that the principle of preferential trade between the United Kingdom and H.M. dominions beyond the seas would stimulate and facilitate mutual commercial intercourse, and would by promoting the development of the resources and industries of the several parts strengthen the Empire." 2. " That this Conference recognises that, in the present circumstances of the colonies, it is not practicable to adopt a general system of free trade as between the Mother Country and the British dominions beyond the seas." '

3. " That with a view, however, to promoting the increase of - trade within the Empire, it is desirable that those colonies which have not already adopted such a policy should, as far as their circumstances permit, give; substantial preferential treatment to the products and manufacture of the United Kingdom." 4. *' That the Prime Ministers of the colonies respectfully urge on H.M. Government the expediency of granting in the United Kingdom preferential treatment to: the products and manufactures of the colonies, either by exemption from or reduction of duties now or hereafter imposed." 5. " That the Prime Ministers present at the Conference undertake to submit to their respective Governments at the earliest opportunity the principle of the resolution, and to request them to take such measures as may be necessary to give effect to it." MR, LLOYD GEORGE'S SPEECH. 7 THE DISADVANTAGES OF DISTANCE. SCHEME TO BE EVOLVED.

London, May 7. 'Mr. George, in the course of his speech at the Imperial Conference yesterday, said* the Government fully shared Sir Joseph Ward's desire to bring the colonies nearer. The Government realised that the Empire grew or produced almost everything that it needed. The problem was how to bring these products to the markets at rates which would not unduly handicap the colonies in competition with foreign countries. Sir Joseph Ward, Sir Wilfrid Laurier, and others held that the best to reduce the natural disadvantage ,of distance, and thus ensure the prompt and cheap delivery of food and raw materials. He admitted that the acceleration of inter-Imperial communications would benefit both the Motherland and the colonies. He meant that by increased facilities for the sale of goods, the general development of trade, and opportunities for extended emigration, they would advance towards the unity of the Empire. The Government had no concrete scheme. He submitted that the problem was ' complex and difficult, but he believed it was not beyond the resources of statesmanship. While preferential tariffs must involve duties on corn and raw materials; with increases in prices, improved transport facilities would probably cheapen the prices of colonial pro ducts. He did not propose' to then submit a definite plan. It would be better to elaborate schemes slowly, after thinking out the problem. When such schemes had been prepared and presented with the full responsibility of the respective Governments, each Government would examine them and they could confer further. ~

The Government had not given the cold shoulder to the colonies. They had given the same answer that the colonies would have given had the British Government tried to induce them to change their fiscal systems. They were unable to give any other reply, as the colonial representatives knew before leaving their homes. He asked them to consider the conditions of a thickly-populated country like Great Britain, which depended for its supplies on other lands and whose social conditions were very different from . those in the colonies. No alteration of the fiscal system would end the blemishes or our social system—the causes of which were deeper and older. The Government believed that the change from Free Trade to Protection would simply aggravate the existing difficulty. The colonies, profiting by the lessons of the Old World, were dealing with the social and economic evils effectively before they hardened into malignity. The Government appealed to the colonies not to countenance any scheme of however much profit to them which involved the risk-of increasing the existing evils of the older country.

IMPERIAL CO-OPERATION. Sir Wilfrid Laurier's motion reaffirming the preference resolutions of 1902 was carried . after the representatives of the British Government had recorded their dissent. The British Government's own motion was amended by Mr. Deakin and Sir Joseph Ward, and then carrie (It leaves each part of the Empire at liberty to select the most suitable means for promoting the greater freedom and fuller development of the commercial intercourse within the Empire, and recognises the ; desirability of co-operating in matters of mutual interest:' FEDERAL MINISTER AT SHEFFIELD. DEAR LOAF "ALL MOON- . SHINE." AUSTRALIA ABLE TO SUPPLY WHEAT. London, May V. The Australian Minister for Customs (Sir W. J. Lyne) visited Sheffield yesterday, and was given an ovation, the workmen being especially enthusiastic. He , addressed a large meeting of members of the Chamber of Commerce in the Cutlers' Hall on the lines of his speech to the Imperial Conference, but was more outspoken. He said that Australia was prepared to supply Great Britain with all the wheat she wanted at fourpence a bushel cheaper than the Argentine's- present prices.: All the statements made about preferential trade making a dear loaf were absolute moonshine. , After' the speeches at the Conference there was no excuse for asserting that the colonies did not favour preference. At present the Australian farmers had no guarantee that Great Britain would nob give their market to foreigners. Surely if they were able to get a steady supply at the same or lower rates the British people ought to be willing to take it from their own flesh and blood. Referring to ; the duty recently placed on American farming machinery arriving in Australia, he stated that he was prepared to increase it if he could induce British manufacturers to make that machinery. He pointed to the disproportionate growth of foreign shipping and manufactures in the ports of Australia, with beggarly increases in some cases and decreases in others in the British trade. While Australia expected for many years to be depending on the British navy for protection,, yet she shortly would be; prepared to help herself and also help the Motherland as far as the navy was concerned. > * AFRIKANDER BOND'S VIEW. Capetown, May 7. r Mr. J. X. Merriman, M.L.A., speaking at Victoria West, Cape Colony, yesterday/ - spoke against preferential trade,-thus showing that the Afrikander Bond is divided on the subject; : ; INVITATION FROM PARIS. London, May 7. The Paris Chamber of Commerce has expressed a desire to entertain the colonial Premiers. The Premiers also have an invitation from the municipality of Antwerp. : PRIVY COUNCILLORSHIPS. (Received May 9, 12.14 a.m.)' London, May 8. The King will confer Privy Councillorships on the colonial Premiers on Friday, and His Majesty has invited them and their wives to tea at Buckingham Palace on that day.