PREFERENTIAL TRADE.

Otago Daily Times, Issue 13893, 3 May 1907, Page 5

PREFERENTIAL TRADE.

VIEWS OF,THE COLONIAL PKEMIEKS. Mil DEAKIN'S ADDRESS. i ABLE SI'KEOH BY SIR J. WAfiD PREFERENCE AND PRICES. Press Association—By Telegraph—Copyright. LONDON, May 1. (Received May 2, at 5.45 p.m.) At the Colonial Conference .Mr Dentin, in concluding his speech on preferential trade, emphasised tho action of Canada in negotiating a reciprocal tariff with Germany.

Sir Joseph Ward made an able speech, which impressed the conference. He stated that, New Zealand's attachment, to tho Empire naturally induced colonists to des,r.» to give the Motherland preference, asking for reciprocity in return. He regretted that this question, which ought to be above party, had become involved in party contests. He declared that there was a distinct and essential difference between preference and the greater and more complex question of protection. The latter drew a ring fence of duty round any specified article, involving an increase in price. The effect of preterence, however, would not he to raise the price of imported products, but would enable the colonial producer to undersell the foreigner, thus obtaining the market. Ho believed the competition between the colonies would be quite sufficient to prevent the prices 'of their products equalling those of loreign competitors.

llr Jameson (Cape Colony) and Mr Moor (Natal) 6trongiy supported preference. Mr Asquith will reply to-morrow.

MR DEAKIN'S VIEWS. (Received May 2, at 9.14 p.m.) Mr Deakin, in tho couise of his speech, stated that the gross totals of Australian trade were satisfactory, but he analysed tho proportionate development ol Australian trade with Britain and other nations. Ho argued that there need he little apprehension of effective retaliation fiom any foreign country. Germany-and the United States,- had too much at slake lo resent preference by hostile measures. They had no right to be resentful. Britain's purchasing power was ,an enormous asset, and ought to be used unitedly. Dealing with the Australian tariff,. he explained its opportunities' for preference, showing that a third of the imports were duty free,-and more than half of these were from foreign countries. A 10 per cent. duty, besides encouraging local production, would lead to quite a large diversion of trade to British traders, while the 15 per cent, section could also be operated upon. The ..great object of transferring their purchases from foreign, countries to .Britain could he' solved, by increasing, as against foreign countries, existing imports from Britain. Therefore they had ample opportunities of meeting concessions with concessions.

(Received May 2, at 10.14 p.m.) Mr Deakin went on to say that since federation the Commonwealth Parliament had been so occupied in absorbing business that it was only now becoming free to deal constructively with the fiscal system. This would be undertaken during this year's session, when a revision of all duties would be attempted. Thus they were in ail exceptionally favourable position to consider a preference proposal. This might range from a free gift like those of South Africa, and Canada to larger concessions which would necessitate reciprocal concessions in the" Home market. Tariff revision woula afford an opportunity of reconsidering the bill conceding preference to goods conveyed on British snips manned, by white la'.iour which passed in 1906 without full deliberation, Tiu-.t preference was only an instalment. Referring to the Colonial Olluc's serious objection, Mr Deakin said the Government had to choose between the loss of the bill and acceptance with disabilities. Mr Deakin was not yet satisfied that treaty obligations really : interposed the impediments which the Colonial Office suggested. Australia had concluded an arrangement with South Africa', and would probably conchide similar treaties with Canada and New Zealand. Australia was also prepared to enter into an agreement with Britain if the Motherland was disposed to negotiate. Ho considered preference was specially adapted for mutual advantage to the trade of the Motherland and of Australia. The last elections in Australia exhibited a distinct advance in public opinion in favour of preference, and any adequate reciprocity from Britain would be received with great favour in Australia, where there were enormous possibilities of local production as yet but partly utilised. Mr Deakin emphasised the great advantages that would accrue from the development under joint action of the means of communication by ships and cables. ".We ought," he said, "to unite in diminishing the distance between us by the greatest possible improvement ill quickness and cheapness of interchange. I hope the day will soon come when a committee of experts will lie appointed to review Imperial trade and take every step to increase it between tho constituent parts of tho Empire. Preference, begun as a business operation, would assist to build up the Empire commercially, industrially, aid productively, keeping the British race within their own vast territories." (Received May 2, at 10.21 p.m.) Mr Deakin said there should be preference in population, trade, and channels of trade, and every form of co-operation between the colonies and the Motherland should be sought for and utilised, though advances in this direction must be cautious rather than experimental. There was a great field open, and their safety and future prospects were -bused on unity of purpose- and action obtained with the concurrence of all the communities composing the Empire. Britain's trade, whiclj Australia was able to supply wholly or in part, amounted to £213,000,000. Australia at present supplied £10.000,000, other British possessions £40,000,000, and foreign countries £160,000.000.

Mr Deakin, in correcting the precis, denied using the term, "bring foreign nations to their knees." SIR JOSEPH WARD'S SPEECH. (Received May 2, at 10.41 p.m.) Sir Joseph Ward said he understood that although New Zealand conceded preference to certain British goods in ISO. the competition between, British merchants prevented any increase of price to the consumer, thought they were able to undersell the foreigner. If he were an English politician he would advocate cheap food for the masses. If he thought preference upon colonial products would increase the price of food he would not support, it. He strongly believed that competition would ensure fair value and keep, down prices. Ho directed attention to the. large decrease in British trade with the colonies, quoting the Board of Trade returns to show that from 1904 to 1906 British trade with Australia and Xew Zealand had declined by £610,000 compared with 1899 to 1901. 'This was suggestive of the inroad foreign countries were making in their efforts to capture British trade, and necessitated consideration from the British authorities and merchants as to whether the loss was due to causes that wero curable by practical methods. The presence of three British' Ministers in-

duced him to emphasise the fact that Australia and Xew Zealand, though yet in their infancy, with a population of only five millions, were the third largest- purchasers of British products, only India and Germany exceeding them, (hough India's population was 259,000,000 and Germany's 60,000,000. He believed that, while the limit of trade between Britain and the Continental countries was already almost reached, the trade with Australia and New Zealand would be an ever-expanding one. It was difficult to form any conception of what even tho next 25 years would do in the way of the development of thoso countries. It was obvious that the teeming millions inhabiting Germany and other highly protective Continental countries must increase their manufacturing industries in order to provide employment for their ever-increasing population. British statesmen and people ought carefully to consider the extraordinary fact that Australasia was only behind Germany in purchasing ability, and already purchased one-half as much as India purchased. (Received May 2, at 11.28 p.m.) Sir Joseph Ward went on to say that such a practical object lesson ought to bo studied. He would support preference for business and Imperial reasons, Business required the consideration of Britain and the colonies. . New Zealand's preference was given entirely, as a matter of sentiment, kinship, and attachment to the Empire. Ninety per cent, of New Zealanders were British, and therefore it Was not unnatural that they should display this splendid feeling. Without undervaluing sentiment, as a plain business man he was unable to shut his eyes' to the fact that sentiment alone, although a great bond of union, was insufficient to build up and solidify a great Empire. He believed the powerful introduction of the self-interests of the people of different parts of the Empire would make the sentimental tie now existing much stronger. Rightly regarded, preference would prove advantageous both to the Motherland and the colonies. He would not attempt to disguise the fact that New Zealand wanted it to be as advantageous to her as .she could have it; but the colonies were not so selfish or stupid as to suppose that England would reciprocate to her substantial hurt. The Commonwealth export and import trade of £110,000.000 compared very favourably per head with that of the United Kingdom. New Zealand's trade was between £30,000.000 and £-10,000,000. If the colonies still in their infancy did a trade of between £140.000.000 and £150,000,000, what might they expect to grow lo under favourable conditions and under the stimulating influence of preference? It would be to England's advantage even if it necessitated some preliminary sacrifice of foreign trade, because that would be replaced by at least an equal amount of increased trade with the colonies. Britain ought to imitate foreign countries in establishing British consulates or trade correspondents in British colonies. Sir J. G. Ward paid a high compliment to the Governors, who represented diplomacy and policy, constituting a link between the old and the newer countries; but it would be derogatory to the dignity of their position if they, were utilised as commercial avenues. Almost every foreign country had consuls in Australasia, and it would bn similarly advantageous, if British Consuls, or something akin to ihein, were established in each town, so that British merchants could obtain full detailed information on any commercial matter. Mr. Lloyd-George interjected that a number of sue!; appointments had already been made. Sir J. G. Ward'said he wanted to sec the vitality of British countries far from the great British centre, so that their people might not be behind their competitors in any respect. Sil J. G. Ward impressed on the conference, and especially" on British statesmen, the imperative necessity of the colonies and the Motherland being brought closer together. He had a mortal hatred of toll bars. He had only seen one during a decade, and that was while driving in London at the Crystal Palace recently. A greater one stood in the highway of commerce between England and her dependencies. He referred to the Suez Canal. Disraeli's acquisition of a substantial interest in the canal was a bold stroke of genius. It was worthy of consideration whether it would not pay' the British Empire and France as the controlling Powers if they agreed to pay a dividend to shareholders so that 'ships sailing with the British and French Hags could pass through free of charge, or at nominal charges. The colonial producers would then- be enabled to send perishable products in tramp steamers through the canal instead of round Cape Horn or by other routes. This would save time, besides proving advantageous to the products exported. The improved facilities would also ho certain to lead to increased trade. Xew Zealand would be prepared to assist in providing the sum required. He urged that Britain should join Australia, Canada, and New Zealand in improved steam mail services between them. He had nothing to say against the existbig services, but had his eye specially on a service across the Atlantic and Pacific via Vancouver. He was quite satisfied if Mr Deakin and Sir W. Laurier were willing to support the proposal that a large and suitable class of steamers would have no great difficulty in shortening by days the time between Australia and New Zealand and London, even bringing New Zealand within 20 days of London. This would strengthen the Imperial, commercial, and domestic ties. New Zealand had already entered into a reciprocal treaty with South Africa, had extci.ded the existing tariff to Canada, and was also willing to enter into a reciprocal treaty with Canada. Their extension of preference to Britain also showed that they favoured preferential trr.de within the Empire. He wished to see Britain respond. When Britain and all her colonics had a preferential tariff they could say to Germany, America, or other protected countries that Britain and her oversea dominions were prepared to consider a reciprocal treaty with the highly protected nations on certain articles of mutual advantage. If the Motherland and her children combined they would be able to prevent colonial products from being subjected to high •and often prohibitive duties by foreign countries. He emphasised the fact that foreign countries were making strenuous efforts lo secure our trade by means of subventions to-steamers and cheapening railway facilities. He admired the way some of their foreign competitors worked to obtain commercial extension, but as a matter of self-protection, and with the object of presenting a drift which might eventually lead to disintegration, ho urged 'in "\he interest of a great national development that they should have a mutual trade arrangement throughout the Empire. New Zealand would be glad to consider a reciprocal treaty with Australia. Both were adjusting their tariffs next year. If it was possible to bring the two peoples closer ,t° each other with, a view to mutual advantage he was sure the New Zealand Parliament would heartily support the movement. Since the commercial policy of every great Continental nation was necessarily directed to the protection of its interests and against the interests of Britain's oversea kith and kin. that warranted their appeal to Britain to join in accomplishing what he honestly believed would vitalise and add to the strengthening and greatness of the Empire. ■ PRESS OPINIONS. LONDON, May 1. The Times, which is in favour of preferential trade, says that Mr Deakin's statement was a forcible and comprehensive political event. The sentimental side of the question for the moment is almost

t-lie most important, and it is emphatically the duty o( a Government setting such store on sentimental tics to do nothing to wrench the strong sentiment of Empire on this issue.

The Morning Post says that the debate must extract the Government official version of its case against- preference. It will thereafter he the duty of the Unionists to obtain the necessary mandate from the electorates.

The Daily Mail rays that the Government's treatment of preference is based on the principle "if we get a verdict first we will try it afterwards." The irony 'of it is that, after denying the reality of tire colonial offer they are doomed to hear colonial statesmen reiterating it.

The Daily News hopes that Mr Denkin will carry away the message that England will be glad to give the colonies Freetrade, a free navy, a common citiasnship, and the cheapest money, but would not tax food nor restrict industrv.

The Standard relies on the educative influence of colonial statesmen in the Motherland to even up the disastrous result of January, 1906. Nearly one-half of the nation is prepared to accompany them the whole road.

The Tribune congratulates Mr Deakin on his thoroughness and frankness. That is how the people of the Motherland wish the colonials to speak out, and her ownstatesmen to answer. There was no "playing a tiiilava on wine and pippins" (a reference to Mr Lloyd-George's sarcastic remark of February 22) with Mr Dentin's speech. It must be treated on its merits, though on the question at issue the Freetrader's opinion on the reversal of his policy was strengthened by Mr Deakin's healthy and business-like frankness. THE DINNER AT BUCKINGHAM PALACE. LONDON, May 1. The dinner to the visiting Premiers and statesmen at Buckingham -Palace will be given on the Bth inst. The visiting ladies will not be included, as the Queen and Princess Victoria will bo au.-ent at Athens, where they are visiting.