CABLEGRAMS

Colonist, Volume XLIX, Issue 11925, 3 May 1907, Page 2

CABLEGRAMS

(Per United Press Association.)* ■ THE IMPERIAL CONFERENCE. PREFERENTIAL TRADE. Received May2 ,15.45 p.m. Z -. t London, 'Maj'Jl. Mr Deakin. in concluding his speech on preference, emphasised the action of Canada in negotiating a ! reciprocal tariff with Germany. Sir J. Ward, in an able, speech which impressed thb Conference, stated that New Zealand's attach ment to the Empire naturally in iuced colonists to desire to give the Motherland preference, asking for reciprocity in return. He regretted j that the question, which ought to be above party, had become involved in party contests. He declared that | there was a distinct and essential lifference between preference, and the greater, and more complete ! question, of protection. The latter Irew a ring fenc9 of duty round any specified article, involving an increase in price, but the effect of preference was not to raise the price of imported products, but to enable colonial products to undersell foreign products, thus obtaining a market. He believed that the competition between the colonies would be quite I sufficient to prevent the prices of their products equalling those of foreign competitors. Dr. Jameson and Mr Moor both strongly supported preference. Mr Asquith replies to-morrow. Received May 2, 9.44 p.m. • London, May 2. Mr Deakin stated that tho gross totals of Australian trade wero satisfactory, but, analysed, the proportionate development with Britain and other nations argued that there was little to be apprehended from effective retaliation from any foreign country. Germany and the United States had too much at stake to resent preference by any hostile measures. They had also no light to he 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 came from foreign countries. AlO per cent duty then, besides encouraging local product ion. would load to quite a large diversion of trade to British traders, while a 15 per cent section could also be operated upon. The great object of transferring our purchases from foreia countries to Britain could be dolved by increasing as against foreign countries our existing duties on imports ; therefore we had ample opportunities of meeting concessions with concesisons. " Received May 2, 10.14 p.m. ■_ Mr Deakin continued to say,since Federation the Commonwealth Parliament had been so occupied with absorbing business that it was only now becoming free to deal with a constructively fiscal system. This would be undertaken during this year's session, when the revision of all over duties would be attenipted. Thus we were in an exceptionally favorable "position to consiier pre ference proposals. This might range from a free gift, like the South j Africans and Canada's, to large j concession!* which would necessitate, reciprocal concessions in the Home market. Tariff revision would afford an opportunity for recousidering the Bill conceeding preference to goods conveyed in British ships manned by white labor, which was passed in 1906 without full dl'eberation. That preference was only an instalment, and but for the New Zealand treaty would probably not have been submittod that session Referring to the Colonial Office's serious objection Mr Deakin said the Government had to choose between tbo loss of the bill and its acceptance with disabilities. Mr Deakin said he was not yet satisfied that treaty obligation really interposed the impediments which the Colonial Office suggested . Aus> tralia had concluded an arrangement with South Africa especially appropriate to that country, ami would probably conclude similar treaties with Canada and New Zealand, and was also prepared, if Britain was dis posed to negotiate, to considor preference specially adapted to the mutual advantage of the Motherland's and Australia's trade." At the last election Australia exhibited a distinct advance in public opinion of preference. Any adequate reciprocity from Britain would be received with Sreat favor in Australia, where there were enormous possibilities, and where local production was as yet but partly utilised Mr Deakin emphasised the great • advantages that would accrue from development under joint action by means of communication by ships and cables. We ought, he said, to unite with a view to diminishing the distance between us by the greatest possible improvement in quickness and cheapness of interchange. He hoped the day would soon come when a committee of experts would be appointed to review Imperial trade, take every step to increase it between the constituent parts of the Empire. Preference,begun as a business operation, would assist to build up tbo Empire commercially, industrially, and productively, keeping the British race within tteir own vast territories. Received May 2, 10.21 p.m. Mr Deakin continued to say that there should bo prefurene in population trade, and channels of trade, every form of between the colonies and the Motherland ought to be sought for and utilised. Though advances in ibis direction must be cautious, and more or less ."experimental, there was a great field open, and our safety and future prospects were based on unity of purpose and action, obtained with the concurrence of all the communities of the proposed Empire. Britain's trade, which Australia was able to supply wholly or in part, amounted to 213 millions. Australia at present supplied ten millions, and other British Possessions forty millions, while foreign countries supplied 160 millions. Mr Deakin, in correcting the precis, denied using the term "bring foreign nations to their knees."

Received May 2, 10.41 p.m. ' Sir J. Ward said be understood that although New Zealand conceded preference to certain British goods, the competition between British merchants prevented any incease in price to the consumer, though they were able to undersell foreigners. If he were an English politician he would advocate cheap food for the masses, and if be thought that preference to colonial products would increase tbe price of food he would not support it. But he strongly believed that competition would ensure fair value and keep down prices. He directed attt>ntion to tbe large decrease in British trade with tbe colonies, quoting the Board of Trade^returns to show that from 1904 to 1906 British trade in Australia and New Zealand declined by £610,000, compared with the period from 1899 to 1901. Phis was suggestive of the inroads that foreign countries were making in the capture of British trade, and necessitated consideration from tbe British authorities and merchants. Whether the loss was due to causes curable. by practical methods be could not say. The presence cf three British Ministers induced him to emphasise the fact that Australia and New 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, though India's population was 239 millions and Germany's sixty millions. He believed that while the limit of trade between Britain and Continental countries had already in most cases, been reached, the trade with Australia and New Zea land would be an ever expanding ; i

one. It was difficult to form any conception of what even the next 25 years would do in the'Eway of 'the development of those countries. But it was "obvious "that the teeming •trillions inhabiting Germany and other highly productive Continental countries must increase their manufacturing industries, in order to provide employment, for the ever/ increasing |" population. If British statesmen and people ought, carefully to consider that, and also the extraordinary fact that Australasia was only behind Germany in purchasing ability, and already purchased one half as much as India purchased. Eeceiyed May 2, 11.28 p. in Sir J. Ward (Joniinued to &ay tbflfc such a practical object lessbri oti^fijto be studied. He supported the preference for business and Imperial reasons and business required consideration by Britain and tho Colonies. New Zealand preferenca was j;iven entirely as a matter of sentiment kinship* and attachment to the Empire, aud 90 per petit of New Zealanders were British", therefore i| WB3 not unnatural that they should display tuis splendid feeling of sentiment. Without undervaluing that force, 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 solidfy 4 great Empire. lie believed that a powerful introduction of self-inter-ests of poople of the different parts of the Empire would make the sentimental tie now existing much stronger. Rightly regarded prefer erne would prove advantageous, both to the Motherland and the Colonies'* Be had not attempted to disguise the fact that New Zealand wanted it; it .vould be advantageous to her as far as she could have it, but the colonies 1 were not so selh'sh or stupid as to suppose that England would rceiprocate to hoi own substantial hurt. The Commonwealth export and im port trade was 110 millions and compared very favourably per head with that of the United Kingdom. New Zealand trade was between thirty and forty millions and if colonies still in their infancy could do a trade of between one hundred and forty and one hundred and fifty millions, what may we expect it to grow to under favourable conditions and under stimulating] influence of preference. It would be to England's advantage, even if ifc^ necessitated some preliminary sacrifice ' of foreign trade, bedause that would be replaced by at least jan equal amount of increased trade with her colonies. Britain ought to imitate foreigncountries in establishing British Consulate trade correspondents ia British colonies. Sir J. Ward paid a high 'compliment to the Governors who represented the King for their diplomacy and policy ia constituting a link between the old and the newer countries, but it would be derogatory to the dignity of their position to be utilised as commercial avenues. Almost every portion of the country had Consuls and to Australasia it would be similarly advantageous if British Consuls, or something akin were established in each town, where British merchants could ob • tain full detailed information of any commercial matter. Mr Lloyd Geoige interjected that a number of such appointments had already been made. Sir J, Ward wanted to see vitality in the British countries far from the great British centre, so that our people might not be behind competitors in any respect. Sir J. Ward impressed upon the Conference, and epsecially the British Statesmen, the imperative necessity for the colonies and the Motherland being brought closer together. He had a mortal hatred of toll bars, and had only seen one during the past decade while driving from London to the Crystal Palace recently, but a greater one stood in the highway of commerce between England and her dependencies—he referred to the Suez (■anal. Disraeli's acquisition of a substantial interest in the Canal was a bold stroke of genius, but it was worthy of considreation whether it would not pay the British Empire aud France, as the controlling powers, if they agreed to pay a dividend tz shareholders so that ships sailing under the British and French flags might pass through free of charge, or at a nominal charge. Colonial would then be enabled to send perishable products in tramp steamers through the Canal instead of round the Horn cr the other routes, and save time. Besides proving advantageous to produots exported, it would also improve facilities, and would be certain to lead to increased trade. New Zealand would be prepared to assist and provide the sum required. He urged that Britain should join AustraliaCanada and New Zealand in an improved steam mail service between them. He had nothing to say against the existing services, but he had his eye specially on a service across the Atlantic and the Pacific via Vancouver. He was quite satisfied that if Mr Deakin and Sir W. JLiaurier were willing to support a large and suitable class of steamers there would be no great difficulty in shortening by some days the time between Australia and New Zealand and London, and even in bringing New Zealand within twenty days of London. This would ; strengthen Imperial, commecial and domestic ties. New Zealand had already entered into a reciprocal treaty with South Africa, and had extended her existing tariff to Canada, and was also willing to enter into a reciprocal treaty with Canada. Their extonsion of preference to Britain also showed that they favored preferential trade within the Empire. They wished to see Britain respond. When Britain and all her colonies had a prefereu tial 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 highly protected nations on certain articles of mutual advantage. If the Motherland and her children combined they would be able to prevent colonial products being subjected to nigh and often prohibitive duties imposed by foreign countries. He emphasied that foreign countries were making strenuous offorts 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 self protection and with the object of preventing a drift which might eventually lead to'disentegration he urged, in the interest of great national development, that we should hsive mutual trade arrangements throughout tbe Empire New Zealand would be glad to cons'der a reciprocal treaty with Australia, and both were adjusting their tariffs next year. If it was possible to bring tbe two people closer in touch with a view to their mutual ndvantage fce was sure the New Zealand Parliament would heartily support tbe effort. Since the commercial policy of every great continental nation was necessarily directed to the protection of its interest and against tbe interests of Britain's oversea kith and kin, that warranted our appealing to Britain to join in accomplishing what I honestly believe will vitalize and add to the strengthening and tbe greatness of the Empire.