TRADE OF THE EMPIRE.

Poverty Bay Herald, Volume XXXIV, Issue 10962, 3 May 1907, Page 4

TRADE OF THE EMPIRE.

THE DEBATE ON PREFERENCE. SIATICSMANLUvE SPEECH BY SIR* JOSEPH WARD. (Press Assn.— By Telegraph.— Copyright.) LONDON, May 1. At the Premiers' Conference, Mr Deakin, concluding his speech on the preference question, emphasised the action of Canada m negotiating for v reciprocal tariff with Germany. Sir J. G. Ward made un able speech, whicli impressed the Conference. Ho sUted that New Zealand's attachment to the Empire naturally induced colonists to desire to give the Motherland preference, asking reciprocity m return. He regretted that the question, which ought to be above party, had btcome involved m party contests. He declared there was a distinct essential difference between preference nnd the greater and more complex question of protection. The latter drew a ring fence of duty round any specified article, involving an increase, of price. The effect of preference was not 'to raise the price of imported products, but to enable colonial products to undersell the foreign, thus obtaining a market. He believed the- competition between the colonies was quite sufficient' to prevent prices of their products equalling those of foreign competitors. Dr. Jameson and Mr Moor strongly supported preference. Mr Asquith replies to-morrow. Mr Deakin stated that the gross totals of Australian trade were satisfactory, but analysed as to proportional development with Britain and other nations, argue little apprehension of any effective retaliation from . any foreign country. .' Germany and the United States had too much at stake to resent preference by hostile measures, and they also had no right to be resentful. Britain's purchasing power was an enormous asset, and ought j to used unitedly, m dealing with tlie Aus-j tralian tariff. He explained the oppor- 1 tunities for preference, showing that a third of the imports were duty free, and that on more than half of them from foreign countries there was a 10 per cent, duty. Then, besides encouraging local production, it would leudt to quite a large diversion being made to British traders, while the 15 per cent, section could also be operated upon. The great object m transferring Australian purchases from foreign countries to Britain, could be solved by increasing ditties against foreign countries, and the imports would therefore give ample opportunities for meeting concession with concession.

Mr Deakin said he considered that since Federation the Commonwealth Parliament had been so occupied with absorbing business that it was only now becoming free to deal constructively with the fiscal system. This work would be undertaken m this year's session, when the revision of all duties would be attempts cd. They were m an exceptionally favorable position to consider a preference pro. posal. This might range from a free gift like South Africa and Canada, to larger concessions which would: necessitate reciprocal concessions on the Home market. The tariff revision would afford an opportunity of reconsidering preference to igoods conveyed m British ships and manned with white. labor which passed m 1906 without full deliberation. That preference was only an instalment, and but for the New Zealand treaty might probably not have, been submitted that session. . '

Referring to the Colonial Office's serious objections, Mr Deakin said the Government liad to choose between the loss of the Bill and its accecptance with disabilities. He was not yet satisfied that the treaty obligations really interposed' the impediment with which the Colonial Office suggested. Australia had concluded an arrangement with South Africa, which was especially appropriate. That country would probably conclude similar treaties with Canada and New Zealand, and was also prepared, if Britain were disposed to negotiate, to consider preference, specially adapted to the mutual ad- i vantage of the Motherland and Australia's trade. The lost elections m Australia exhibited a distinct advance ' m public opinion m favor of preference. Any adequate reciprocity fropi Britain would be received with great favor m Australia, where there were enormous possibilities for local production as yet partly utilised. Mr Deakin emphasised the great advantages wliich would 'accrue;- from the development under joint action of means, of communication by ships and cable 6. "We ought," he said^ "to unite m diminishing the distance between lis by tlie greatest possible improvement m the ?uiickness and cheapness of interchange, j hope the day will soon come when al committee of experts appointed to review Imperial trade will take .every step to increase it between •constituent parts of the Empire. Preference, would begin as a business operation, and would. assist to buildl up the. Empire commercially,.industrially, and productively, keeping^ the British race within their own vast territories. "There should be preference m population, trade, and channels of trade. Every form of co-operation between the colonies and the Motherland ought to be sought for and utilised, though advances m this direction must be cautious and more or less experimental. -.. A great field is open. Our safety and future prospects are based on unity of purpose and action obtained with the concurrence of all the communities -composing the Empire. - Britain's trade; which Australia was* able to supply, wholly or m part, amounted to £213,---000,000. Australia at present supplied £10,000,000, other British, possessions £40,000,000, and foreign countries' £160,CGO.OOO." , Mr Deakin, m correcting the precis report, 'denied using tlie term "bring foreign nations to their knees." Sir Joseph Ward- understood that although New Zealand conceded preference -to certain British goods m 1903, competition between British merchants prevented ony increase m prices to the consumer, though they were, able to undersell the foreigner. If an English politician he would advocate cheap food for the masses, and if he thought preference- upon colonial products would increase the price of food ,he -2 would not support it-- He strongly believed that competition would ensure fair value and keep down prices. He directed attention to the large decrease in 'British trade with the colonies, qiiotiug the* Board of. Trade .returns to show that -from -.-. 190* -to 1906 the British .trade with Australia and New -Zealand declined £610,000. compared with 1.99 to 1901. Tliis was suggestive of inroads by foreign countries making a capture of' the British trade, and necessitated consideration from tlie British authorities and merchants as to whether the loss was due to causes' curable by any practical method. The presence of three* British Ministers induced him to emphasise the fact that Australia and New Zealand, though yet m their infancy, with a population of only five millions, were tho third largest purchasers, of British products, only "lndia and Germany exceeding them. India's population was 239,000,---000 and Germany's 60,000,000. He believed that while, the limit of trade between Britain; and the Continental countries had been already almost reached, trade with Australia and New Zealand would be an ever-expanding one. It was difficult to form any conception even of what the next twenty -five years would do m the way of development of those countries!. It was obvious that the teeming millions inhabiting Germany and other highly-productive Continental countries must" increase their manufacturing industries for the ever-increasing population. British statesmen and people ought to carefully consider also the extraordinary fact that Australia was only behind Germany hi .purchasing ability, and already purchased one-half as much as India purchased. —

Such a .practical object lesson ought to be studied. He supported preference for business and Imperial reasons. Tlie busincsH required consideration ol Britain and the colonies. The New Zealand preference was given entirely on a matter of sentiment, kinship and attachment to the Empire. As 90 per cent: of New Zealandecs were British it was not unnatural that they should display tliis. splendid feeling of sentimcnjL Without undervaluing that force, as a plain business man, he was unable to shut his eyes to the fatt that sentiment alone, although n great bond of union, was insufficient to build «p »nd solidify a great Empire, He believed a powerful introduction of self-interest m the peoples of the different parts of the Empire would make the sentimental tie now existing much stronger. Rightly regarded, preference would prove advantageous to both the Motherland and the colonies. He did not attempt to disguise the fact that New Zealand wanted it to be as advantageous as they could have jt : but the colonies were not so selfish vs sfupid as to suppose that England would r.eciproeaite to her substantial hurt. 'Tlie* ■Commonwealth export and import trade of £11.0,000,000 compared very favorably per' head with the United Kingdom's. ' and New Zealand's trade was between thirty and forty millions. If tiic colonies "still m their infancy do a trade of about £150,000,000, what might be expected from them under favorable conditions and under the stimulating influence of preference? It would be to England's advantage even, if it necessitated ionic preliminary sacrifice of foreign trade, because it ■"would be replaced by at least. an equal amount of in-, creased trade with the colonies. Britain ; ought to imitate foreign countries by, cs r ■ tablishing British Consulates or fcrade correspondents m the British colonies. ; Sir Joseph paid a high compliment to the Governors who represented the diplomacy and policy of Britain, constituting a link . between the «ld and the newer countries; but it was derogatory to the dignity of their positions to be utilised as commer- _ cial avenues. Almost every lorejgn country had Consuls m Australasia. It would Ih> similarly advantageous if British Consul* or something akin were established m each town, where British merchants could obtain full and detailed information of any commercial matter. j Mr" Lloyd George interject ed that a .number of such appointments had already been ■made.

Sir Joseph .said lie wanted to see vitality m British countries fur torn the

gr<<at British centre, so that* our people might not be behind their competitors m any respect. He impressed on the Conference, and especially the British statesmen, tlie imperative necessity of the colonies and the Motherland being brought closer together. He had a mortal hatred of toll-bare. He had only seen one during a decadt — while driving m the London Crystal Palace recently. ; A greater one stood on the highway of commerce between England and her dependencies. He referred to the Suez Canal. Disraeli's acquisition of a substantial interest m the canal was a bold stroke of genius. It was worthy of consideration whether it would not pay the British Empire and France, us the controlling Powers, if they agreed to pay a dividend to shareholders so that ships sailing under the British and French flags might pass through free "of charges, or at nominal charges. Colonial proproducers would then be enabled to sendi perishable products m tramp steamers through the Canal, instead of by Cape Horn or other routes. Tliis would save time, besides proving advantageous to the products exported. It also improved the facilities,- and- was certain to lead to increased trade. New Zealand would be (prepared to assist to provide the sum required. He urged that Britain should join Australia, Canada, and New Zealand m an improved steam mail service between them. He had nothing to say against existing services, but he had his eye specially »on a service across the Atlantic and Pacific, via Vancouver. He was quite satisfied that if Mr Deakin and Sir Wilfrid Laurier were willing to support "a large suitable class of steamers, there would be no great difficulty m shortening by ten days' time the journey between Australia, New Zealand, and London, even bringing New Zealand with-i m 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, extended 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 tliat they favored preferential trade within the Empire. He wished to see, Britain respond. When all her colonies had preferential tariffs, Britain could say to Germany, America, or any other protected > country, that Britain and her oversea dominions were prepared to consider' a reciprocal treaty with highly-protected - nations, on certain articles of mutual, advantage. If the Motherland combined and the children combined^ they would be able to prevent colonial products being subjected to high and often prohibitive duties by foreign countries. He emphasised that foreign oountries strenuously endeavored to secure our trade by means of subventions to steamers and the cheapening of railway facilities. He admired the way some foreign competitors worked to obtain commercial extension ; but. as a matter of sejf-protection, and with the object of preventing a drift wliich might eventually lead to disintegration, "lie urged m tile interest of great national development that they shoxud have mutual trade arrangements throughout the Empire. New, Zealand had been considering a reciprocal treaty with Australia. Both adjusting their tariffs next year; if possible,, to bring the two peoples closer m touch, with a view to mutual advantage. He 'felt sure, the- New Zealand Parliament would heartily support him. 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 the colonies appealing to Britain to join m accomplishing what lie ' Honestly believed would vitalise 1 and add to the strength and greatness of the Empire. (Received May 3, 7.30 a.m.) ; LONDON, May 2. ■ Dr. Jameson (Otpe Colony) m a clever speech, endorsed every word Mr Deakin had said. The colonies were ripe for action, and .all were awaiting the British Government's decision. The colonies had not asked Britain to sacrifice her fiscal principles, but asked her to change the methods adopted and to practice the prin. ciple of preference, if only by reducing the existing duties. He -dwelt 011 the great advantage to South Africa if the duties on tobacco and wine were reduced, and emphasised that the two territories of South Africa, were absolutely under the control of the British Government. Ec had been directed to adhere to the Customs Union of South Africa, which £aye preference to the Motherland. He hoped that indicated a possibility of another advance. He- mentioned that a .minority of the Cape Parliament were opposed to further preference, and possibly opposed even to a continuance of the present preference unless Britain was prepared to give reciprocity to some small extent. Mr Moore (Natal) urged an experimental reduction of the duty on tobacco. The debate will ; be Resumed to-day.