THE EMPIRE'S TRADE.

Poverty Bay Herald, Volume XXXIV, Issue 10966, 8 May 1907, Page 4

THE EMPIRE'S TRADE.

— ♦ "■ • THE QUESTION OF PREFERENCE. (Press Assn.— By Telegraph.— Copyright.) LONDON, May 7. The Imperial Conference was resumed yesterday. Dr Jameson hoped Mi Lloyd (korge would give a more sympathetic answer than Mr Asqtiith'is decisive refusal. He moved a further lesolution: "That while affirming the resolution of 1902 the Conference considers that as the British Government through the South African Customs Union, is allowed preference against foreigners to the United Kingdom, Canada, Australasia, and all other British pcsI fcfeisibps which, have granted reciprocity, [tfhs; British Government should now take ! into ''consideration' the granting of a like j. gre|ej^;(L^Q.^a4]^ oil present dutiable articles in th© British tariff. ... Sir Wilfrid Luurier thought consideration of the resolution' might be postponed until the main resolution was considered. 'Mr- George's very elaborate and able speech on the question of preference cccupied three hours, necessitating another day's debate to enable Mr Churchill to speak. It is believed that the Government'will propose, a vague non-committal resolution. Mr George, adopted an interrogative form. Mr Denkin frequently rppliiid ii:d others occasionally. ' ' ■ ;. Mr George said the Government was' willing to consider thd suggestion though nothing would \ induce them to change their position regarding the United Bling. dom'B tariff. .He challenged Sir William Lyne's and Dr Smartt's statements and arguments. He reviewed the United Kingdom's position, as gauged by the test of growth of imports ana exports, Their, protectionist .rivals admitted that -while British trade with the rest of the colonies; was satisfactory, ■ Australia's position was unsatisfactory. This called for full inquirv as to whatever, action could be applied since it alone. showed a considerable decline in Br'tislv imports. He contrasted Britain's circumstances with Germany! and France, maintaining that the highest wages and shortest houns were paid to British skilled laborers, yielding, goods of fch& highest value. The United Kingdom's ' exports andmanufactures were much .Uglier per head than those of France, Germany, or the United States. Her tonnage of shipping was enormously greater. Referring to Sir William Lyne's, remarks regarding foreign shipping in Australian waters, Mr George said the total entrances and clearances of oversea trade in Australian ports in 1905 were under two million tons, whilst shipping under the British flag was 5£ million tons. The Imperial Government might ignor© the mandate given to Mr Deakin at last election in favor of protection, and preference, and might endeavor to induce tb» Cmiference to adopt a policy of freetrade within .the Empire, which they could not have- approved without proving false to tlieir people. Sir William Lyne had urged a commercial union of the whole Empire, quoting precedents, but in all these cases all tolls and tariffs were removed. Had a treetrade resolution beeis proposed and refused the press might have declared tbut the colonies refused to listen to the Motherland's appeal to be put on. equal terms wifchi her children^ who slammed the door in, their" old mother's face. Th^, Government did not adopt that course, recognising the unfairness of ignor. ing local conditions and exigencies. They did not wish to, attempt to jnalioeuvre each other into false positions, since all were in perfect accord regarding the objects desired. It was better to try to discharge the iwlitical business of the. Empire. The Government favored the scheme of the development of inter-Imperial trade, which did not inflict ; sacrifices on individual communities, creating .discontent and discord, and impairing: true unity. He heartily agreed that, the Empire would ( be a great gainer if much now bought abroad could be produced and purchased within tlie Empire. Then a part of. the surplus population now going to foreign lands might be kept within the Empire, addincr strength to such federation of free commonwealths. This was worth some sacrifice. He only differed as regards ways and means. "He was convinced a tax on food meant casting an undue share of the sacrifice on the poorest part of the population. .. A tax , on raw materials would fetter Britain in her severe struggle with foreign competitors. Stidh sacrifice would weaken Britain's power to make further sacrifices. Britain ought not to be called upon to make it. Mr Deakin had asked the Government to do what no protectionist country would do, namely, tax, necessaries of life or livelihood, which Britain cannot produce and which the colonies could not supply sufficiently for many years. He acknowledged the considerable advantage which colonial preference conferred on the British manufacturer. The Canadian tariff satisfactorily affected Britain's export trade and apparently benefited- Canada. The South African and New Zealand tariffs would doubtless presently show similarly happy results. The same applied to Australia. Britain felt grateful not only for the actual concessions but the spirit of comradeship and affection. If asked'- what the colonies .was prepared to do in return lie would reply that Britain was the best customer of colonial products. The exports of the : autonomous colonies in 1905 to all foreign countries were 40£ millions, and the exports to the United Kingdom were 65f millions, exclusive of bullion and specie valued at 21J millions. He would be sorry if the Conference parted without carefully considering every suggestion . for developing inter-Imperial commerce. Regarding Sir Joseph Ward's valuable practical suggestions, Mr George admitted that it would be an undoubted advantage if traders could cable ordcra quickly and at a rate not prohibitive: Regarding the appointment of commercial attaches or con/ suls m the colonies to assist British trade, Mr George admitted. that Britain had not yet done enough. He was doubly glad Sir Joseph Ward had raised the question, for Mr Asquith ungrudgingly acceded to every request for improving the equipment of the Board of Trade's commercial department. He approved of the appointment of Imperial commercial travellers to investigate trade conditions and requirements in the colonies, who would report all such matters to the Board of Trade, who would disseminate the information. He was confident that these travellers would visit the great industrial centres in Britain, and ascertain what colonial; 'produce .they really demand. Sir Joseph Ward's third suggestion regarding improved transport and passenger communication between the Motherland and the colonies was mc*st important and most momentous. AJI the experience of France and others showed that merchant shipping subsidies •were not a benefit to shipping. The late Government appointed a committee, chiefly of tariff reformers, to investigate, and thev reported adversely to. the policy of subsidising shipping. He was umible to consider any suggestion for a system of subsidies as a means of improving interImperial trade. (Received May 8, 7.40 a.m.) Mr Lloyd George, in the course of his speech, said the Government fully shared Sir Joseph* Ward's desire to bring the colonies nearer the Government. They realised that the Empire grow or produced almost everything it needed. The problem was how to bring the products to markets at rates, which would not. unditly handicap the colonies in competition with foreign countries. Sir Wilfrid Laurier and others held that the best way was to reduce the natural disadvantage of distance, and thus to ensure prompt and cheap delivery of food and raw materials. Mr Lloyd George admit- ! ted that the acceleration of inter-Imperial communication would benefit all. By in- { creasing facilities for the sale of goods, 1 the renewal and development of trade, 'and opportunities for* extended emigraj tion, they, would advance towards unity j ;of the Empire. The Government had no j ' concrete scheme. He submitted that the ! problem was complex and difficult, but I believed that it was beyond the resources I of statesmanship. While preferential ( tariffs must involve duties on corn and raw materials, increasing the prices, improved transport facilities would probably cheapen the prices of colonial pro-, ducts. He did not propose then to submit a definite plan. It would be better 'to elaborate schemes slo wly after thinking out the problem.; When such schemes j were prepared and presented with full ! responsibility of the respective Governments, each would examine- them and con i f er further. He denied that the Govern•ment had given the cold shoulder to the | colonies. They had given £he same ans*- : wer that the colonies would have given had the British Government tried to in- : duce them to change their fiscal system. j They were unablo to give any other reply, as the colonial representatives knew before leaving home. He asked them to consider the condition of a thicklypopulaled country like Britain, which

depended on supplies from other lands, and with conditions very different from the colonies no alteration of the fiscal system would end the blemishes of our social system. The causes were deeper and older. The Government believed the change from freetrade to protection would simply aggravate the existing difficulty. The colonies, profiting by the lessons of the Old World, were dealing with 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 X'isk of increasing the existing evils of the older country. Mr Deakin vainly urged the holding of earlier and later sittings in order to expedite the business of the Conference. MELBOURNE, May 7. 31r Prendergast, leader of the Labor party, in a speech, said the people were the creators of those who were pleading for preferential trade — th© same people who had led them into the Boer war. Of all the resolutions submitted in favor of. preferential trade not one was designed for the benefit of the people— they were all for traders. The sort of preferential trade English capitalists wanted was the kind they sent their solderis out to get for them. They had their hand on nearly everything; in Australia, and every time ; they got a show they cut down wages and increased the hours of labor, so as to create bigger dividends. If the people put _up with that sort of thing from a foreign Government they would be doing an injustice to themselves.