PREFERENTIAL TRADE. MELBOURNE, August 30.

Otago Witness, Issue 2738, 5 September 1906, Page 19

PREFERENTIAL TRADE. MELBOURNE, August 30.

Mr Deakin (the Federal Premier), in tabling the preference agreement with New Zealand, said he had, received a cable from Sir J. G. Ward intimating that the new duties had now been given the force of law and that the agreement had been referred to the Industry and Commerce Committee to report within a week. Mr Deakin said some duties were not altered from the rates already existing, but they were never embodied in an agreement, because it was found both- New Zealand and the Commonwealth were unable to maintain them as they were, except with proportional concessions. The agreement would remain in force for three years, and thereafter continue subject to one year's notice. The agreement marked a new departure in the history of Australasia. It. proposed to, bring together two countries which were naturally united by mtoy ties of interest. He doubted if any such agreement existed in the Empire. Xo man could have known better the resources of his own 'State than the late Mr Seddon, and the accomplished work was largely due to his foresight and grasp of details. He (Mr Deakin) recommended the acceptance of the agreement, and hoped it would lead to a wider extension of commercial relations between the different parts of the Jimpire.

Mr Deakin (continuing) touched upon the negotiations with South Africa, and said he hoped before the session had ended to be able to table an agreement with South Africa. Although the political circumstances in the Lnited Kingdom did not lead the Government to hope for reciprocal fra.de -with that country, he hoped that opinion would yet change, and that the jyenple of Britain would see that Australia's object was not to make a raid on the indiioti<al life of Britain. The Minister of Ciij-toins would submit an addition to the >-w Zealand treaty resolutions, wiikli would cover a proposal to grant certain advantages to the . Mother Country over her commercial rivals. It was not a reciprocal agreement like that with New Zealand, but was an opening or advance order. The Government might show that it- meant what it said when it adopted Protection for Australia, which was capable of being extended into Protection for the whole Empire.

Mr Cook (Deputy-leader of the Opposition) said that the Opposition welcomed freer trade with- New Zealand, but would like to see absolute Freetrade between the two countries.

Sir William Lyne read a list of the new duties, and the Government announced that it would be prepared to discuss the proposals on Tuesday or Wednesday.

Progress was then reported.

Mr Cook asked what reason theie was for continuing Customs barriers against New Zealand. Was it -to protect Australia against the pauper labour of New Zealand, or from its inferior industrial conditions? There was no reason for interference with the trade between Australia and New Zealand. He was sorry to hear that some of the duties were raised, and said that the aim should have been to abolish all duties. Why should there not be absolute freedom in the comn ercial and industrial relations between Nev Zealand and Australia?

Mr Hutchinson wanted to know why New Zealand, if she wanted Freetrade with Australia, did not come into the union.

Prior to progress being reported Sir William Lyne moved to give effect to the new tariff, which, he stated, would come into force at once, but the reductions would require statutory authority.

Sir William Lyne subsequently moved resolutions covering preferential British importations.

The duties on goods from the United Kingdom under the preferential resolutions submitted by Sir William Lyn« are the duties as now stated under the tariff, the duties on foreign imports being raised. August 31. Under the tariff concessions to Great

Britain the duties on foreign goods ara raised 5 to 10 per centum and the fixed duties l£d to Is. Mr Cook declared thafc the Government had torn up the compact with the people for fiscal peac£ Theirs was a proposal to build a higher tariff wall round Australia, and there would be no response on the part of Great Britain.,

Mr Watson, in an interview, said that, as a believer in preferential trade, ha welcomed Mr Deakin's instalment. So> far as the propositions went, it seemed* to him an indication of the feeling id Australia on this important question* Full concessions to other portions of the Empire could only be realised whetf a Reciprocal Act was possible.

SYDNEY, August 31. Mr Reid, in the course of an interview, described Mr Deakin's preference proposals as a half-hearted attempt to mix a little preference with a stronger dose of Protection. A genuine and unconditional concession to the Mother Country on the part of the daughter, he stated, would be quite a different matter, - and one which must commend itself to everyone as a matter of patriotism. The' effect of a genuine concession would be to reduce the tariff "and open the door a little wider.

LONDON, August 31. Mr Deakin has cabled to the Daily Chronicle stating that his promise ii something more than an offer. It is an overture suggesting the possibilities of friendly negotiations. The Chronicle says that the offer amounts to very little while the protective wall remains so high