IMPERIAL CONFERENCE.

Timaru Herald, Volume XC, Issue 13275, 2 May 1907, Page 5

IMPERIAL CONFERENCE.

'DEBATE ON PREFERENTIAL TRADE., ADDRESS BY MR DEAKIN. United Press Association—Per Electric Telegraph—Copyright. LONDON, April 20. Mr Asquith, Chancellor of the Exchequer, and'''Sir Lloyd-George, President of the Board of Trade, and a dozen members ■of the Treasury, Board of Trade and Indian officials, were present at the preferential trade discussion'. Lord Elgin invited Mr Deakin to open the discussion, but Mr Deakin said he thought Sir Wilfrid Laurkr might like to say a few preliminary words. ■ Sir Wilfrid Laurier made a short statement, explaining that Canada had actually given preferenc3 to the Motherland, and now awaited some "action on the part of the Motherland. He intimated, his intention to move a reaffirmation of tlie .preference resolutions, carried by the Conference in 1902. He understood that Australia proposed to take similar action. Mr Dealdn remarked that Australia's resolutions preferred an explicit for preference from the Motherland. '' Mr Deakin was speaking when the Conference adjourned to attend a luncheon given to the Premiers by colonial-born .members of the House of Commons. LONDON, May 1. On the. Conference resuming, Mr Deakin said that' from the first inception of the Colonial Conference the possibility of more intimate trade-relations between the Motherland and the Colonies, by means of Customs or a Customs union had been in the minds of representatives. Mr Deakin quoted Lord Salisbury's remarks at the.' opening of the Conference in 1887. a,ud tha debate following on ..Sir "Samuel Griffiths' direct appeal for preferential trade within the Empire.. Mr Deakin also cited the late Sir. James Service's remarks, that tha whole subject must be dealt, with widely by the Imperial authorities from ihe standpoint of permanent unity of the Empire. Such remarks from Freetraders. were, significant. ■ Mr Deakin recapitulated his own comments on the same /occasion as that of : Sir Samuel Griffiths. Mr Hofmeyer's idea suggested th?| best if not the only means available to bring the Empire closer together. Mr. Deakin dwelt at some length en Mr' Hofmeyer's proposals of 1887; also his warning to the Ottawa Conferencg of -the danger /Of. neglecting. 'his', advice. Mi' Deakin .read: ■: the resolutions;, in favour of reciprocity with the colonies, passed, in 1894," and 'repeated in 1898 and- T£Q2. He "'dwelt on' the . advance made during each period; and quoted Mr Balfour's reply to < the deputation in. 1904, when he stated' that the present Conference had been summoned for the purpose of considering the possibility of closer and better trade relations. Mr .'.Deakin disclaimed' any intention of touching British -politics.. y It was/ only ad-. visable to notice the appeal which the British Honse of Commons mads to the electors of the Commonwealth in June, 1905, to resist preference 1 , because it meant, a tax oh food. That appeal had been refjecte'd by a majority of .three to'one at the recent said, he recognised that, though a_ strong difference of opinion existed on this.iquestion their opponents were not lacking in goodwill. He admitted they must, deal with the question as a matter of business. All the world over. trade' was sought and fought for. Australia proposed -preference, believing that ..it would cause ..an increase!'in trade ..with the Empire, which would lead to a development of resources, building up dominions beyond the. seas. They, as the, Motherland's best customers must alwavs remain part of the same Empire, and' claimed to be regarded from that standpoint. There was the .political motive to be kept in mind. Britain. con- ; stituted the world's best market, even if preference were granted; by the colonies, .■rad-dutie-i levied on foreign goods it,would . stiHremnin the best market for foreigners, despite the. high duties levied elsewhere. No other country enjoyed such opportunities of assisting its dominions as Britain. Its purchasing power gave it enormous authority. The, seller is the courtier, the buyer the king, Mr Deakin said he recognised .that the first diity. of the British'"Parliament'was to . consider British interests.'"lf"it chose to protect its industries and "revive those which had decayed, the colonies could .take no possible'exception. What Australia-proposed was 1 that' after Britain had "studied local interests it-should make arrangements for mutual benefit for both.. That was best - done: by looking at each proposal critically and in a, business. light, as Sir Edward Laws had done in the memorandum to Lord Curzon in 1904. They ought to consider .how far it was possible for the several .units of a, political whole to assist each other. Mr Deakin dwelt on the. importance of. keeping the Empire together by resorting to every opportunity which would assist its consolidation, . and he urged that greater co-operation. ..was a necessity of the Empire's continued ex- | istence. It was not intended to dictate to any. of the self-governing communities but they should negotiate freely for an equable scheme of mufual advantage. Australia asked for no concession which it was not prepared to reciprocate. He: quoted Mr Schoolings' statistics showing tha great decline in proportion to British exports, particularly' to Australia, Canada, India, the Cape., and Straits' Settlements. ,Mr Schoolings showed, Mr Dealdn that a large and continuous fall 1 had occurred in the' United Kingdom's- share of the Australian markets. .During the last decade Britain's share had fallen to 61 3-10 pounds per hundred. ; Britain, was losing her place as'a seller in the. markets of her colonies. " This) result was not from any serious diminution of trade caused by the develophißnt of Australian industries, hut contemporaneous with the substantial increase-'"in combined trade. Mr Deakin proceeded to give a detailed analysis of the fluctuation of Australian trade, and the extent- it had been conquered by foreign goods much of which was carried by subsidised ships. He aroused much interest, by showing the treatment accorded to Australian meat and dairy produce in Germany, beside prohibitive duties and other restrictive demands,. enforced with a view of resolutely stopping trade;'.: .Simi lar difficulties in France, Africa, and Sweden were likely to act in the same, way except where raw materials were required. He stated that there was no trade in frozen meat with Europe, excepting • England ; and he instanced Denmark's receiving the greatest advantage, specially from the ■ low English railway rates for her dairy products. The effect' of these foreign restrictions was the foreign markets being closed against Australia, while in the English market she had to compete with exports from the very countries- which received the earn© free access that. Australia enjoyed. Australia wished greater advantages in the British .market, since it was unlikely that it would find a market on the Continent. Australia, was able to supply an immensely larger part of Britain's" wants than was now supplied by foreigners. He believed the threat of retaliation would bring the foreign nation to their knees. It was absolutely necessary for Australia to find fresh markets owing to the increasing population and the larger cultivated area. Without preference' it was doubtful if Australia would be able to maintain its position in the British markets. With preference the wheat exports, for instance, might increase fourfold, and with an increase in export fully another 40,000 of population might be employed.'. The " Times;" in a special article on the

Conference and Unity of the Empire, emphasises the fact that Britain is already a tariff State, and declares that the minimum that may be demanded from the Government is a declaration of the right of India and other Imperial dependencies to einbody preference in their tariffs; secondly, an /mderuking by the Motherland to give preference, on existing duties., and to reconsider carefully such extension of revenue duties as will enable every part of the Empire to benefit by the preference given.