COLONIAL PREMIERS IN ENGLAND.

Otago Daily Times, Issue 13895, 6 May 1907, Page 5

COLONIAL PREMIERS IN ENGLAND.

DISCUSSION ON PREFERISN.TIAL TItADE. SIR W. LYME'S VIEWS. IMPORTANT SPEKOII BY MR BALFOUIt. OPINIONS OF TJIE PKESS. Prc33 Associaticu—By Telegraph-Copyright. LONDON, May 3.' Sir W. J. Lyne, in the course of a vigorous and outspoken speech at the Colonial Conference, declared that Mr Asquitli was unnecessarily brusque and uncompromising in his attempts to belittle the advantage of the colonial offers. He was scaicely fair. If Australian preference, wliiuh was now restricted to 8 ptr cent, of its linde, yielded a profit of iIIU'J.OCO, it would, if' more widely extended, as was contemplated, perhaps yield a profit of £1,200,000. Pa-plying to Kir J. Mnckay, Sir William said it was unlikely thai, the people of Austialiii, with their higher isocial condition-:, wonlcl place a Lascar earning 4Jd a day in the same category as Australian seamen earning from 4s to ss.

Sir ,1. Mackay interjected that Lascars received 9d a dav.

Kir W. .1. Lyne asserted that foreign shipping urn! trade" were increasing in Australia far quicker than were British, and ho feared that (iivat Britain was losing her hold on the Australian markets, l'referenco would rectify this. Great Britain was really more concerned than Australia. He advocated low Australian duties on British goeds and higher charges on foreign freights. Australia did not want a one-sided bargain. If 2s per quarter preference were conceded to colonial wheat, 20,000,000 more acres would he planted in the colonies. The concession, would not raise the nriJc of bread, and the colonies would be able to supply nearly evorythim; Great Britain wanted.

iMr W. ./. Lyne emphasised the increasing keenness of foreign competition in the colonies, citing the latest statistics. Foreign nations gave bounties and concessions of idl kindtf in order to increase their trade, thereby increasing also their mercantile marine and reserves for naval warfare. If the British Government was su satislied that it had got a mandate against preference, why hesitate to appeal to the country by means of a referendum to find out if it was stiJl of the same opinion'/ He denied that there was such a mandate.

-Mr Deakln asked Mr Lloyd-George if he were prepared to lake their propositions into consideration. Great Britain, he said, could make up her contribution to tho Imperial fund by any means she pleased, so long as she provided an equivalent. He thought such a proposal well worth examination, in order to ascertain if it was within Mr Asquith's undertaking that the Government was prepared to look favourably at any proposal for improving inter-Imperial communication and the development of commerce and trade. If the Government was favmiiable to the idea, then the conference could try to arrive at a practical agreement. It was better to wait for that or some similar scheme than to close the conference without being able to show any advance. His groat- object was to elicit some positive proposal.

Mr Dcakin's suggestion appeared to be received with disfavour on the part of two of the colonial representatives, and also of" Alv Moyd-Gemgu awl Mr Winston (Jnurclull. The two latter consented to consider the matter, and both will address the conference on Monday.

-Mr Deakin inquired whether the British Government, being absolutely determined against preference, would consider a proposal on the lines suggested by Mr Hofmeyer in 1887 and by Sir Sydenham Clarke in Melbourne in Xuvci'iiber, 1906, involving the creation of an Imperial fund by it 1 prr cenl. special import duty levied on all'Toreign goods entering Jiritish ports, the fund to be applied to the improvement and development of the maritime communications of the Empire, the improvement of the carriage of mails and cables, and other common Imperial ends, such as the Suez Canal dilliunity. Mr Asquith said he van not prepared to answer without consideration. May 4. (Received May 5, at 5.12 p.m.) The precis of the conclusion of Sir W. ■I. Lyne's speech was only iisucd on I'riday evening. He. said means must bo found to secure closer unity in commerce. The younger generation had not the same instinctive attachment to the Mother Country as the one that was now the guardian of the Kmpire's outposts. He warned the British tiovmnment that trade was slipping away. When ho left nearly half the shipping at Sydney was foreign. He was confident that tliis question would be taken up throughout "ie length and breadth of the Kinpire .despite Mr Asquith's discouragement. Though momentarily eclipsed, the cause of reciprocity and trade prefeience would certainly eventually win. Australians, as the fcith'and kin of the .Motherland, n-sented bsini; treated on the same footing as foreigners. It was possible in connection with foodstuffs tn assist the colonies at the expense of foreigners without any additional cost to the llritisb consumer, and perhaps it would he possible in this way to raise revenue to assist an old-age pensions scheme. i (Received May 5. at midnight.)

Sir \V. Lyne went on to say that a great shrinkage in liritish trade was inevitable, owing to Hie high foreign tariff walls. Foreigners would not retaliate, since they required our wide market. The. consolidation of the United States, the establishment of the Commonwealth, aiul the early federation of South Africa were all examples that the British Empire might follow. Mr Asu/ilh's basic principle was that Freetrade, adopted 50 years ago. still held the Held. Sir W. Lyne contended that Fveelrade was unsuitable now, and must not be accepted as an inherited dogma. 1 f the Empire was valuable it must bo cemented by ties of kinship and commerce. He recalled Lord Carnarvon's phrase tliat all Hie products oi Nature are found within the. Empire, and the scattered units of the Empire were capable of being marvellously united in sympathy and sentiment. Australia's preference was a modest step towards life goal of union. The policy of blundering through was possible in the case of Wai , , but would probably be disastrous in commerce. Australia's 10 per cent, preference was really a larger advantage than Canada offered. He thought some special consideration might be extended to Australian wine, and emphasised the importance of providing more rapid communication with Australia.

Dr Smart! (Cape Colony) described 51 r Asqiiitli's speech as a brilliant piece of special pleading. The old attachment to the. Motheilatid was diminishing in the colonies, and fresh ties were needed. The Empire could not hold together unless regard was paid to local conditions and local sentiment.

More pcoole c'i? frem the indirect resuit oi eclds than of aiiytliing e'.ee. ]):■ Kv.art. Londou. regards Baxter's Lung Preserver as invaluable for colds find cliest affections Mnerally,

Sir Wilfrid - Laurier said he did not sympathise with Mi' Deakin's support of Mr Ilol'meyer's proposal, fearing that its adoption would dislocate the Canadian tariif.

Sir Joseph Ward hesitated to express his approval.

MR BALFOUR/S VIEWS.

EXTENSION OF THE BASIS OF TAXATION. • LONDON', May 4. (Received May 5, at 4.40 p.in.) Mr lir.lfour, speakjng at (he meeting of the Primrose League in the Albert If nil. asked who, reading Mr Asqiiitli's Budget Speech, could say that Britain's fiscal system was satisfactory? Who, after reading the speeches of the colonial Premiers, could say the feelings of the colonies were a transitory emotion? The only remedy that could lessen the burden of Imperial defence and provide for social reform was an extension of the basis of taxation. The existing duties on articles of large consumption were, from the ad valorem standpoint, of preposterous magnitude. What was wanted was small duties on articles of large consumption, which would thus yield a large revenue without serious dislocation of trade or laying a serious burden on the consumer. Such a system could be used to meet the desires of every dependency and to strengthen the bonds between the Motherland and the colonies and bring them together on ii commercial basis. He bad no doubt the policy of preference would ultimately be adopted by Britain, but he thought thai when it was adopted it would be less advantageous than if the Government bad not turned a deal ear to ' the colonial Premiers' proposals. Banging the door in their faces was the most foolish form of Imperial statesmanship. The whole spirit of the Government-, and its action in every part, if not inconsistent with the maintenance of the Empire, must drain it of its vital force and strength.

SPEECH BY MR HOFMEYER.. LONDON, May 3. Mr Hofmpyer. in the course of an address, snid it was not to be expected that his was an idolatrous worship of the Empire like that of Britishers, but lie had a real interest in its maintenance and that of the navy as a means io that end. Ilia (aril? proposals at the conference of 1887 originated in the approval of :i differential duty by England and the colonies on foreign goods for the benefit of the navy, such duties working reciprocally. China's awakening and the EussoJapanese war necessitated a powerful fleet.

PRESS OPINIONS. LONDON, May 3. The Times says : " Mr Asqnith's statement is depressing, and the colonial Premiers' statements are full of hope and constructive imagination. They suggest a bright future and a determination to mould it to their ends. They contemplate a. progressive Empire, uniletl by steadilyincreasing ties. Mr Asquilli, in reply, was only able to offer one essential point —a rigid adherence to an old position. It is true that fie promised attention to the Enipire's communications, but, judged by the economic standpoint,- this subject is small, and from the political standpoint far smaller compared with preference. He pleads that his hands are tied. Are they tied against more than a Protectionist tariff? Preference is based on a corn duty. Have the electorates ever denied or affirmed the principle of preference? Mr Asqnith's attitude is the attitude of an extreme fiscal Puritan."

The Daily News says: "The case of -Mr Asqiiiih and .Sir J. Maekay is unanswerable. The people of the Motherland are determined that the prime nocc-s:-li-:s of li/e shall never again be taxed. That is a verdict whence there is no appeal."

The Slnndnrd challenges the Government to submit the'question of reciprocal preference to a referendum, i'lie lenders of tlie Imperial element in t lie nation must now, it says, show the colonial Premiers that their message is not in vain. The Daily Chronicle emphasises ami tlic Morning Post admits that, regarding the Dominion trade and communications, the results of the conference have not been negative. The Post, however, contends that on the main question the voice of India is only the voice of a department of the British Government which is administering a country, and adds that, tested by value per head, tlia Australian market is incomparably mow valuable to us than the German.

According to the Daily Telegraph, the Motherland stands alone in desiring less than she did in IGO2.

Sir J. Macl.ay having stated at the conference that if preference, were adopted Indian manufacturers would press for Protection, the Morning Post asks "Why not?" The Time-* is doubtful whether the development of India's possibilities is not ft'tlcred in the interests of Great Britain's mni.iifactiires.

Mr Deakin, in a letter to The Times, emphasises existing Australian preference a> a mere forerunner and preliminary overture, in no way satisfying Australian dxire.% since a large majority at tlicflolls hud approved his programme, which in duo course would be submitted to Parliamiilt. .May 4. (Received May 5, at 4.40 p.m.) . The Daily Chronicle asserts that Mr llalfour's proposed alteration in the food taxes was a iiirymtie. scheme for relieving the direct taxpayer at the cost of the poorer lmmbns of the communitv.

i'lie Times makes a strong onslaught on Britain's fiscal system, stating that it is the crudest known among civilised men. A income tax is absurd. J.r.e imposts exceed the value of things taxed when' til? taxes are levied upon a very small number of articles.

The Standard slates that Hie Government, by refusing to entertain the proposals for reciprocal preference, has given Mr I'iivUom , the neatest opportunity of his life, and he has lost no lime in iisuring the country that he is determined tq utilise it to the utmost. The Telegraph states that Mr Balfour's speech may prove the turning point in the fortiiiifs of the political parties. Henceforth those desiring the closer association of the sister nations with the Motherland must vote with the Unionists, while those hostile or indifferent to ine maintenance of the Empire must vote with the Radicals. The Westminster Gazette declares that Mr Dalfonr's proposal to impose small taxes which no one will feel ; s chimerical and would lead the nation into the morass of Protection. (Received May 5, at 5.26 p.m.) The Westminster Gametic states Unit it is glad Mr Asquith docs not take the view expressed by Mr Cox and Mr Wedgewood (members of the House of Commons) tiiiii- the Imperial Government's participation in such schemes as outlined by Sir Joseph Ward in the direction of improved communications and a reduction of die Suez Canal dues would be worse than preference. To veto such participation would be fatal to a large part of their work as pathfinders and roadmakers in new countries. The principle of Fvectmie gives the utmost freedom and facility to trade, and ran ho applied by making channels for trade where private enterprise ior the moment does not suttiee. SYDNEY, May 4. The Sydney Morning Herald, after reviewing the position Mr Deakin and his party had obtained at tlio elections, remark: "I'or such a Minister to claim be has a mandate from Australia te offer preference on his own terms is a course

of political conduct which wo can hardly define in parliamentary language, whilst his astonishing colleague, Sir W. J. Lyno, nearly equals the effrontery of the. Prime Minister when he invites the Imperial Government to institute a referendum on the subject.' 1 A BANQUET TO THE PREMIERS. LONJ]6n, May 3. Tim British Empire League and the Jiritisii t-!eience Guild gave a banquet to the Premiers at the Jlolel Metropole. Three hundred guests were present, including Lord Hugh Cecil, Lord, Kelvin, and leading scientists and educationists. Lord Derby (chairman), on behalf of the league, proposed "The Premiers," and was supported by the Vice-chancellor of Oxford on behalf of the Science Guild. The, hitter declared that the universities of Montreal, Melbourne, Sydney, and Now Zealand looked forward to au interchange of studsnts and professors.

Mr Dcakin, in replying, said that the Imperial problem was to retain the principle of self-government, and not leave tho self-governments scattered and disunited, or until the hour of emergency to improvise expedients for unity.

Sir J. G. Ward referred to the work of the Empire League in New Zealand. He was loudly clieered.

THE VICTORIA LEAGUE. LONDON, -May 6. The Victoria League entertained Iho wives and daughters of the visiting Premiers and Ministers at luncheon. Princtss Lmike (the Duchess of Argyle) was present.

THE CONFERENCE OF 1902. Tho resolutions regarding preferential trade passed liy the conference, of 1902 went as follows: — 1. That this conference recognises that tho principle of preferential tra<ie between tho United Kingdom and 11.M. dominions bjyond the seas would stnnulaio 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 lecogmses tha.t, in the present circumstances of tho colonies it is not practicable to adopt a general system of a freo trade as between the Mother Country and the Jiritisii dominions beyond the seas. 3. That with a view, however, to promoting tho increase of trade within tho Knipire. it is desirable that those colonies which have not already adopted fiioh a policy should, as far as their circumstances permit. give substantial preferential treatment to the products and manufactures of the United Kingdom.

4. That tl;o l'rimo Miiiist-crs of tho colonies respectfully urge on H.M. Government the expediency of granting; in tho United Kingdom prefercniwl treatment to tho products and manufactures of the coloircs, cither 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 tho principle of tho resolution, and to request them to take such measures as may l>o necessary to owe effect to it.

Mr Hofmeycr at tho conference- of 1837, presided over by Lord Knutsford, )iropo?ed a sehoino ol Imperial Customs federation. He attended the Imperial Conference at Ottawa as one of the representatives of Capo Colony.