IMPERIAL CONFERENCE.

Timaru Herald, Volume XC, Issue 13276, 3 May 1907, Page 5

IMPERIAL CONFERENCE.

THE QUESTION OF. PREFERENCE. SPEECHES BY COLONIAL STATIES- • MEN. < ■ United Press Association—Per Electric Telegraph—Copyright." '. LONDON, •• May 1.. At the Imperial Conference, Mr Deakin, in concluding his speech on preference, emphasised the action of Canada in negotiating a reciprocal tariff with Germany. Sir J. G. Ward in aai able, speech,' which impressed the members<bf the Conference, stated that New Zealand's attachment to the Empire naturally, induced the colonists' desire to give the Motherland pref.ere.nce, asking her to reciprccats~ ; in return. He regretted that this question which ought to bs above party , had become involved in. party contests. He declared that there was a distinct and essential difference between, preference and v the greater and more complete question, ,of protection. The latter ,drew a ring fence of duty round any specified article,, in;. volving an increase in price. The 'effect of'preference would not, b& to raise the price of, imported-: products, but would enable colonial producers, to undersell the foreigner and thus obtain .the market. He believed that the- competition between the.colonies ''vras quite sufficient to the prices of .their -"products equalling those -in' foreign- competition- • Dr Jameson and Mr Moor strongly supported preference. Mr Asquith replies to-morrow. , LONDON, May 2. Mr Dealcin 'said that since federation the Commonwealth Parliament was so occupied with- absorbing business that it was only inow it was becoming free to deal constructively with, a fiscal/system... This wpuld be undertaken. .at*this year's jrqssioir wlien a revision of-all their duties would be attempted. Tlrus Australia -was in, an exceptionally favourable;, position to sider a preference proposal. Thisi might range from a free gift like .South Africa's and Canada's to larger concessions which would necessitate; reciprocal concessions on the home market. Tariff revision would afford an Opportunity of reconsidering the Bill conceding preference to goods conveyed in British shipsi and manned by white labour which had been passed in 1906 without full , deliberation. That preference was only an. instalment. But- for. Zealand that treaty would probably not have been submitted that session. Referring t-os the Colonial Office's serious objection, Mr Deakim said-that the Government had to choose between the loss of the Bill and its acceptance with disabilities'. Mr Deakin said lie was not yet. satisfied that their treaty obligations really interposed thfe impediments which the. Colonial Office .-.suggested., Australia had concluded an arrangement -with South Africa especially appropriate'to that country, and. would probably conclude similar treaties with Canada and New Zealand. Australia was also: prepared, if Britain were disposed to negotiate, to consider preference specially adapted to the mutual advantage of the Motherland's and Australia's trade. The last elections' -in Australia exhibited a distinct advance of publie opinion in favour of preference,, and any adequate reciprocity, from Britain • would be received with great favour in Australia, where enormous possibilities of-local, production were 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. They ought to unite,in diminishing the distance between Britain and Australia by the greatest possible im r prdvemenb in quickness and cheapness of interchange, and he [hoped the, day would soon come when the committee of experts appointed to review'lmperial trade would •take every step,to increase ib.between the constituent parts -.of jthe. Empire. Preference begun as. a business .operation would assiit to build an \ empire, commercially, industrially, ancl ; productively, keeping the British race within.: their own : vast , territories. There should bs preference in population, trade and the channels: of-trade; every form of co-operation between the colonies and the .Motherland ought: to be sought- for and utilised. Though the advances in this direction had been most cautious, a more experimental and greater field was open. Their safety and future prospects were 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 in part, amounted to 213 niillions; Australia at present supplied 10' millions, other British possessions 40 millions, and foreign countries 160 millions.

Mr J)eakin, in correcting the precis', denied using the 1 term —"Bring foreign na-' tions to their knees." Sir J. G. Ward said lie understood that although New Zealand had conceded preference to certain British goods| in 1903 the competition between British merchants prevented any increase of price to)the, consumer, though they were able to undersell the foreigner. If he thought preference upon colonial products would increase the price of food he would hot support it. He. strongly believed that competition would ensure, fair value and keep down prices. He directed attention to the -large increase in, British -tra-ie with the colonies, quoting the Board of Trade returns to show that from 1904 to 1906 British trade to Australia and New Zealand had declined by £610,000. as compared with the 'period from 1899 to 1901. This was suggestive of the inroad of fo- • reign countries, making a capture of British trade, and necessitated" consideration from the British authorities and merchants. Whether the loss was due to causes that were, curable by practical methods, lie could not say, but the presence of three British Ministers induced him to emphasise the fact. 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 60 millions. He believed [ that while the limit of trade between Britain and the continental countries had been already almost reached, the trade between Britain and Australia; and New Zealand would be an ever-expanding one. It was difficult to form any conception whatever of what the next 25 years would do in the wav of development ini those countries. It was* obvious that the teeming millions inhabiting Germany and other highly-pro-tective continental countries, must increase their manufacturing industries in order to. provide employment for an ever-increasing population. British statesmen and British people ought to carefully consider that it was also an extraordinaiy fact that Australasia was only behind Germany in purchasing ability, and that Australasia had already purchased one-half as much as India had purchased. Mr Deakin stated that the gross totals of Australian trade were satisfactory, blithe analysed the proportionate development with Britain and other nations, 'and argued that there was little apprehension of 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 ba resentful. Britain's purchasing power was an. enormous asset, and ought to be .used unitedly. In dealing with the Australian tariff lie explained its opportunities for preference, showing that one-third of the imports were, duty free, and more than half of these were from foreign countries. A 10 per cent, duty, then 7 besides encouraging local production would lead to quite'a large diversion of trade to British traders, while the 15 per cent, section could also be operated

upon. The great 4 object of transferring these-purchases, from foreign countries to Britain could be solved by increasing as aoaiiist foreign countries their existing imports. Therefore they had ample opportunities of meeting concessions with concessions: Sir J. G.. Ward said that such a practical object lesson ought to be studied. He would support preference for . burine?s and imperial reasons, and' business jreqaiired the consideration of Britain and'thti colonies. New Zealand's preference w;oukl be given entirely as a matter of*sentiment, kinship, and attachment to the Empire: 90 per cent, of' New Zealanders were British ;_ therefore, it w.as not unnatural that they would display this 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 tip and solidify a great empire. He believed that the 'powerful introduction of self-interests. of the peoples of the different parts of the Empire would make the 'sentimental tie now" existing niuch stronger.. It was rightly' regarded that preference .would-, prove advantageous both, to the Motherland'- and the colonies. He would not attempt to recognise that. New Zealand wanted it to be' as advantageous to her as die-, could _■ have, it,...but the colonies were! nob so selfish or'-stupid as to suppose that England would.'reciprocate to her. substantial hurt. The. Commonwealth's export a nd import trade of 110 millions . compared very favourablv with the United-Kingdom's, and.New Zealand's trade of between 30 and 40 millions. If/.colonies, still in their infancy: could go a trade of between 140 and 150 millions, what "might they expect it to grow to under favourable conditions, and" under the stimulating influence' of preference.' It would be.to England's advantage, even if it necessitated some, preliminary-sacrifice of foreign trade, because it would be replaced by at-least ,-an equal amount-of ih- ■ creased trade..... The colonies,and Britain ought to imitate* foreign .countries : by establishing British .consulates or trade .correspondents in British colonies., ' . Sir J. G. Ward, paid' a high compliment, to. the. Governors who. represented diplomacy and policy,, constituting the. link between the older rand newer countries, bub-it was derogatory to thet dignity of their position that they should be utilised as commercial''! avenues.. ■ Almost' every" foreign country had .consuls in Australasia, and it would be 1 similarly:, advantageous if British consults 6r / soniething akin were, established in" ■each town, where British merchants could obtain full information on any .commercial matter.; '-"- , v '\- -.;■... "';. -^ . , ! -'..-: Mr Lloyd George interjected that a.num-1 : ber of such appointment's <\had been' already j made. ' ■ ' - ... ■Sir J. G. Ward said he wanted to see the vitality ' of the British - in countries' : . far from the great.British centre, so-that their people might.nob be behind . their .competitors in any respect. . Sir J. G. Ward impressed . upon the. Conference-, especially the British statesmen,', the imperative- necessity ,of the colonies and ; the Motherland' being "brought closer, together. ; He-had, he said,, a mortal, hatred "to toll, bars ; he had only, seen one during a decade, while driving in .London to'.the-Crystal Palace recently. A .greater'one stood in. the highway of commerce- between England and her dependencies.. He'referred to the Suez Canal, ' Disraeli's, acquisition.; of a substantial interest in : , the : Canal was a: bold stroke of 'genius; but it., was •' worthy of .■ consideration whether it would" not pay the> British Empire and France, as the controlling Powers, if they, agreed to pay* adividend io; the shareholders, so that ships sailing the British and French flags' might pass through ,-' free of charge or at nominal charges. Co: lonial producers) would then be enabled to send "their perishable products/ in/tramp -.steamers through the canal instead ;.of round ; the Horn or by other route's. ' This would: 'save time,, besides providing advantageous to the products exported. Improved facilitiesi would be- certain to lead to Increased trade.' Nere 'Zealand would be. prepared to. assist to ■.provide-.the sum ■required. He urged' that' Britain should join Australia, Canada and New Zealand, in.improved steam mail services between them. He had nothing to" say against the I' existing services,- but he ; had his eye specially to 'a service across ■the' Atlantic and Pacific via Vancouver. He would Ka quite satisfied'.. if :Mr, D'eakin. and Sir Wilfrid Laurier'were- willing, : to .support a- large .and suitable ''•■■" classr- :of--. steamers. : ; There would be no great. difficulty in shortening the.time between Amstralia, New Zealand and London, even to hringing New Zea r land within 20 days of London, . This would strengthen the Imperial, commercial, ""and domestic ties. New Zealand had aL' ready entered into a. reciprocal treaty with South Africa; had extended the existing tariff to Canada, and -was also willing to enter into a reciprocal treaty with Canada. i Their extension of preference to Britain also showed that they favoured preferen--1 rial trade within the Empire. ' He wished to see Britain respond., ! t W.hen ; _Britain and all her colonies had >[ a. preferential tariff, they could say to Germany, America, • or any of the other protected countries, that Britain .and her over-sea dominions were prepared to consider a reciprocal treaty with the 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 ito high often prohibitive duties ;;by foreign countries:.- /.He emphasised the foreign countries' strenuous efforts to secure colonial trade by means of subventions to steamers and v cheapening railway facilities, .and admired the way some, of the. foreign competitors worked to obtain commercial extension; .but, as a matter of self-protection and with the'object of predrift which might eventually lead to'disintegration, he urged in the interest of a great national development that they should have. mutuaT trade' arrangements throughout the Empire. 'New Zealand, would be glad to consider a reciprocal treaty with Australia; both were adjusting their tariffs next year/ and if it were, possible to bring two peoples into closer tpuch with a view of mutual advantage lie was sure that the New Zealand Parliament would heartily support it. Since-the commercial j)olicy of every great continental nation was necessarily directed to. the protection of its interests and against the interests of Britain's over-sea kith and kin, that wan-anted the colonies appealing to Britain to join in accomplishing what he honestly believed would vitalise and add to the strengthening and greatness of the Empire. LONDON PRESS COMMENT. LONDON, May .1. •> The " Times" states that- Mr Deakiu's statement is forcible and comprehensive and -a political event. The sentimental side of the question is for the moment almost the most important.- It was emphatically the duty of a Government setting such" a store on sentimental, ties to do nothing to wrench Ihe strong sentiment of Empire on ■this issue. The " Morning Post" says the debate must extract from the Government an official version of their case a'gainst preference. It wotdd therefore be the duty of the Unionists to obtain the necessary mandate from the electorates. The " Daily Mail" says the Govern- ■ ment's treatment of preference was based on the principle of a verdict first, and trade afterwards. ' 'The irony of it ■ is that after denying the reality of the colonial offer the Government is doomed to hear colonial statesmen reiterating it. The " Daily News " hopes that Mr Dea-

kin will cany away a. message that.England is glad to give the colonies free trade, a tree navy, a common citizenship, and the cheapest money, but would not tax food or restrict industry. ; The " Standard " relies on the colonial statesmen's educative influence on the Motherland to even up the disastrous J.ammry of 1906 (the date of the last General Election). Nearly one half of thci nation was prepared to accompany them the whole road. The " Tribune" congratulates Mr Deakin on his thoroughness and -frankness and says it shows the /peopls of the Motherland wish colonials to speak out, and their own statesmen .to answer. There was no playing " Tinfcara wine and pippins" (a reference- to Mr Lloyd-George's sarcastic remark of February 24th), with Mr Deakiifs speech, but on the merits of the question freetraders were against ■ a r?versal of a policy which was strengthened by Mr Dentin's healthy businesslike frankness. •-•-: