CONFERENCE BETWEEN THE SECRETARY OF STATE FOR THE COLONIES AND THE PRIME MINISTERS OF SELFGOVERNING COLONIES (PAPERS RELATING TO A), JUNE TO AUGUST, 1902.

Appendix to the Journals of the House of Representatives, 1903 Session I, A-07

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1903. NEW ZEALAND.

CONFERENCE BETWEEN THE SECRETARY OF STATE FOR THE COLONIES AND THE PRIME MINISTERS OF SELFGOVERNING COLONIES (PAPERS RELATING TO A), JUNE TO AUGUST, 1902.

Laid on the Table by the Hon. the Premier ivith the Leave of the House.

TABL E OF CON T E NTS.

PAGE. List of Subjects suggested fob Discussion and Notices of Motion .. .. .. .. 2 Summary of Resolutions and Results .. .. .. .. .. .. .. .. 3 Summary of Proceedings .. .. .. .. .. .. .. .. .. .. 5 Appendices : Papers laid beforb the Conference : Defence Appendices— I. Defence Expenditure of the Empire .. .. .. .. .. .. 32 11. Colonial Expenditure in Connection with War in South Africa .. .. .. 32 111. C.D.C. Memorandum on Imperial Reserves in the Colonies .. .. .. .. 33 IV. Admiralty Memorandum on Sea Power .. .. .. .. .. .. 38 V. (1.) Statement as to the Defence of New Zealand, by the Premier and Minister of Defence .. 41 (2.) Scheme for Australian Mounted Force, by Major-General French .. .. .. 44 (3.) Defence of Australia, Minute by Major-General Sir E. T. Hutton .. .. .. 45 VI. Memorandum by Canadian Ministers concerning Defence .. .. .. .. 54 VII. Correspondence as to Supplies of Meat, Produce, &c, for Army and Navy .. .. ..55 Trade Appendices — VIII. Board of Trade Memorandum on Effect of the Canadian Preferential Tariff on Trade between the United Kingdom and Canada .. .. .. .. .. .. .. 60 IX. Canadian Memorandum respecting the Operation of the Preferential Tariff .. .. 93 X. Board of Trade Memorandum on Mutual Protection of Patents .. .. .. .. 101 Miscellaneous Appendices — XI. Memorandum on Imperial Stamp Charges on Colonial Bonds .. .. .. .. .. 11l XII. Memorandum on Ocean Cables, by Sir Sandford Fleming .. .. .. .. .. 11l XIII. Naturalisation Correspondence .. .. .. .. .. .. .. .. 115 XIV. Professional Employment in South Africa : Pricis of Correspondence .. .. .. .. 116

INDEX. PAGE page Appeal, Imperial Court of .. . 27 Postal Rates for Newspapers .. .. 30 Army and Navy Supply Contracts .. .. 26 Preferential Tariffs .. .. .. 9, 27, 29 Cables, Ocean, and Purchase thereof .. .. 30 Publication of Proceedings .. .. .. 5 Cadets, Naval and Military .. .. 26 Resolutions: — Cattle, Importation of Canadian .. .. 31 Army Commissions and Naval Cadetships .. 26 Coastwise Trade .. .. .. 29 Army and Navy Supply Contracts .. .. 26 Commercial Relations of Empire : Loss of Most- Coasting Trade and Navigation and Shipping favoured-nation Treatment consequent on giving Laws .. .. .. .. ..29 of Preference to British goods .. 6, 27, 29 Communication prior to Treaties .. .. 26 Conferences of Prime Ministers, Holding of 26 Conferences every Four Years .. .. 26 Contracts, Army and Navy Supply .. .. 26 Mail-services and Shipping Subsidies .. 29 Court of Appeal, Imperial .. 27 Metric System .. .. .. 30 Decimal Currency .. .. .. 30 Mutual Protection of Patents .. .. 30 Defence, see " Imperial." Newspaper Postage.. .. .. ..30 Imperial Court of Appeal .. .. 27 Ocean Cables, Purchase of .. .. .. 30 Defence .. .. .. .. 7 Preferential Trade .. .. .. 29 Naval.. .. .. ..10 Professional Employment in South Africa .. 31 Military .. .. 22 Settlement of South Africa, Admission of Members Stamp Charges on Colonial Bonds 30 of Learned and Skilled Professions .. .. 31 Importation of Canadian Cattle .. .. 31 Shipping Subsidies .. .. .. 29 Mail-services .. .. .. .. 29 South Africa, Settlement of .. .. 31 Merchant Shipping : Uniform Laws throughout the Stamp Charges on Colonial Bonds, Imperial .. 30 Empire .. .. .. .. 30 Tariffs, see Preferential. Metric System .. . .. 30 Telegraphy, Wireless .. .. .. 30 Naturalisation .. .. .. .. 31 Trade Relations, see Commercial Relations. Naval and Military Cadets .. .. ..26 Treaties, Communication prior to entering on, affectNewspapers, Postal Rates for .. 30 ing Colonial Interests .. .. 26 Ocean Cables, and Purchase thereof .. .. 30 Uniformity in Patterns of Weapons .. .. 26 Pacific Islands.. .. .. .. 31 Victoria Memorial .. .. .. 31 Patents, Mutual Protection of .. .. .. 30 Wireless Telegraphy .. .. .. 30 Political Relations .. ~ ~ .. 6, 26 I—A. 7.

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SUBJECTS SUGGESTED FOE DISCUSSION, AND NOTICES OE MOTION. Subjects for Discussion. Suggested by 1. Political relations of Mother-country with the colonies... ... Secretary of State for the Colonies. (a.) Motion : " That it would be to the advantage of the Empire Government of New Zeaif triennial Conferences were held at which questions land. affecting the political and commercial relations of the Mother-country and His Majesty's dominions over the seas could be discussed and considered as between the Secretary of State for the Colonies and the Premiers of the self-governing colonies. In case of any emergency arising upon which a special Conference may have been deemed necessary, the next ordinary Conference to be held not sooner than three years thereafter." (6.) Communication prior to entering on treaties affecting Government of Commoncolonial interests. wealth, (c.) Imperial Court of Appeal ... ... ... ... Government of Commonwealth. 2. Imperial defence ... ... ... .. ... ... Secretary of State for the Colonies. (a.) Motion: " That it is desirable to have an Imperial Eeserve Government of New ZeaForce formed in each of His Majesty's dominions over land. the seas for service in case of emergency outside the dominion or colony in which such reserve is formed. The limits within which such reserve force may be employed outside the colony wherein it is raised to be defined by the Imperial and Colonial Governments at the time such reserve is formed, and to be in accordance with any law in force for the time being respecting the same. The cost of maintaining and equipping such Imperial Eeserve Force to be defrayed in such proportion and manner as may be agreed upon between the Imperial and Colonial Governments." (b.) " That the Australian Squadron be strengthened—(a) by in- Government of New Zeacreasing the number of cruisers ; (b) by withdrawing land. some of the inferior gunboats, and replacing them with modern and better class cruisers; and (c) by adding torpedo catchers or destroyers, if deemed necessary. The extra cost of maintenance entailed to be defrayed in the same proportion as provided under the existing agreements, and on population basis." (c.) Army and navy supply contracts ... ... ... Government of Commonwealth. (d.) Commissions in the army and navy ... ... ... Government of New Zealand. (c.) Uniformity in patterns of weapons ... ... ... Secretary of State for War. 3. Commercial relations of the Empire ... ... ... Secretary of State for the Colonies. (a.) Motion: "That it is essential to the well-being of the Government of New Zea-Mother-country and His Majesty's dominions beyond land. the seas that in such dominions where the same do not now exist preferential tariffs by way of rebate of duties on British-manufactured goods carried in British-owned ships should be granted, and that in the Mother-country rebate of duty on colonial products now taxable should be conceded." (&.) Loss of most-favoured-nation treatment if preference given Government of Commonto Great Britain. wealth. (c.) Mutual protection of patents ... ... ... ... Government of Commonwealth. (d.) Merchant shipping—uniform laws throughout the Empire Government of the Cape, (c.) Imperial stamp charges on colonial bonds ... ... Government of Commonwealth. (/.) (1.) Ocean cables, and purchase thereof ... ... Government of Commonwealth. (2.) Government control of wireless telegraphy .... ... Admiralty and War Office. (g.) Motion : " That it would be an advantage to the Empire to Government of New Zeahave subsidised mail-services established as between land. Australia, New Zealand, Canada, and Great Britain. The steamers carrying such mails to be British-owned, and such steamers to be of such a class and so fitted that in time of war they may be armed and fitted as cruisers."

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(h.) Motion : " That in view of the application of the coasting Government of New Zealaws of the United States and of other nations, the time land, has arrived for negotiations to be opened with a view to removal or modification of restrictions on British trade, failing which the Imperial Government should take steps to protect the trade of the Empire by passing a law declaring that the colonies and dependencies shall come within similar coasting laws." 4. Naturalisation ... ... ... ... ... ... Government of Cape and Government of Natal. 5. Settlement of South Africa ... ... ... ... Government of New ZeaMotion: "That in arranging for the administration of that land, portion of the Empire known formerly as the South African Eepublic and the Orange Free State provision should be made that duly qualified members of the learned and skilled professions now admitted and hereafter to be admitted to practise in the Dominion of Canada, the Commonwealth of Australia, and in New Zealand, be allowed to practice within the newly acquired territories referred to." 6. Islands of the Pacific, Eelations of the Commonwealth and New Secretary of State for the Zealand with. Colonies.

SUMMAEY OE RESOLUTIONS AND RESULTS.

Political relations. Resolution, —" That it would be to the advantage of the Empire if Conferences were held, as far as practicable, at intervals not exceeding four years, at which questions of common interest affecting the relations of the Mother-country and His Majesty's dominions over the seas could be discussed and considered as between the Secretary of State for the Colonies and the Prime Ministers of the self-governing colonies. The Secretary of State for the Colonies is requested to arrange for such Conferences after communication with the Prime Ministers of the respective colonies. In case of any emergency arising upon which a special Conference may have been deemed necessary, the next ordinary Conference to be held not sooner than three years thereafter." Communication prior to treaties. Resolution, —"That so far as may be consistent with the confidential negotiation of treaties with Foreign Powers, the views of the colonies affected should be obtained in order that they may be in a better position to give adhesion to such treaties." Naval defence. Contribution of Australia increased to £200,000 a year towards the cost of an improved Australasian Squadron and the establishment of a branch of the Eoyal Naval Eeserve. Contribution of New Zealand increased to £40,000 a year towards an improved Australasian Squadron and the establishment of a branch of the Eoyal Naval Eeserve. Contribution of Cape Colony increased to £50,000 per annum towards the general maintenance of the navy. Natal to contribute £35,000 per annum towards the general maintenance of the navy. Newfoundland to contribute £3,000 per annum (and a capital sum of £1,000 for fitting up and preparing a drill-ship) towards the maintenance of a branch of the Eoyal Naval Eeserve of not less than 600 men. Discussion to be continued by correspondence. Military defence. Commissions in the Aemy and Cadbtships in the Navy.— Resolution, —" That the Prime Ministers of self-governing colonies suggest that the question of the allotment of the naval and military cadets to the dominions beyond the seas be taken into consideration by the Naval and Military authorities, with a view to increasing the number of commissions to be offered ; that, consistent with insuring suitable candidates, as far as practicable, greater facilities than now obtain should be given to enable young colonists to enter the navy and the army." Preferential trade. Resolution, —" (1.) That this Conference recognises that the principle of preferential trade between the United Kingdom and His Majesty's dominions beyond the seas would stimulate and facilitate mutual commercial intercourse, and would, by promoting the development of the resources and industries of the several parts, strengthen the Empire. (2.) That this Conference recognises that in the present circumstances of the colonies it is not practicable to adopt a general system of free-trade as between the Mother-country and the British dominions beyond the seas. (3.) That with a visw, however, to promoting the increase of trade within the Empire it is desirable that those colonies which have not already adopted such a policy should, as far as their

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circumstances permit, give substantial preferential treatment to the products and manufactures of the United Kingdom. (4.) That the Prime Ministers of the colonies respectfully urge on His Majesty's Government the expediency of granting in the United Kingdom preferential treatment to the products and manufactures of the colonies either by exemption from cr reduction of duties now or hereafter imposed. (5.) That the Prime Ministers present at the Conference undertake to submit to their respective Governments at the earliest opportunity the principle of the resolution, and to request them to take such measures as may be necessary to give effect to it." The representatives of the colonies are prepared to recommend to their respective Parliaments preferential treatment of British goods on the following lines : — Canada. —The existing preference of 33J per cent., and an additional preference on lists of selected articles— (a) by further reducing the duties in favour of the United Kingdom; (b) by raising the duties against foreign imports ; (c) by imposing duties on certain foreign imports now on the free list. Australia. —Preferential treatment not yet defined as to nature or extent. New Zealand. —A general preference by 10 per cent, all-round reduction of the present duty on British-manufactured goods, or an equivalent in respect of lists of selected articles on the lines proposed by Canada —namely, (a) by further reducing the duties in favour of the United Kingdom ; (b) by raising the duties against foreign imports; (c) by imposing duties on certain foreign imports now on the free list. The Cape and Natal. —A preference of 25 per cent, or its equivalent on dutiable goods other than specially rated articles, to be given by increasing the duties on foreign imports. Government contracts. Resolution, —" That in all Government contracts, whether in the case of the Colonial or the Imperial Governments, it is desirable that, as far as practicable, the products of the Empire should be preferred to the products of foreign countries. With a view to promoting this result it is suggested that where such contracts cannot be filled in the country in which the supplies are required, the fullest practicable notice of the requirements and of the conditions of tender should be given both in the colonies and the United Kingdom, and that this notice should be communicated through official channels as well as through the Press." , Shipping subsidies. Resolution, — " That it is desirable that, in view of the great extension of foreign subsidies to shipping, the position of the mail-services between different parts of the Empire should be reviewed by the respective Governments. In all new contracts provisions should be inserted to prevent excessive freight charges or any preference in favour of foreigners, and to insure that such of the steamers as may be suitable shall be at the service of His Majesty's Government in war-time as cruisers or transports." Coasting trade. Resolution, — " That it is desirable that the attention of the Governments of the colonies and the United Kingdom should be called to the present state of the navigation laws in the Empire and in other countries, and to the advisability of refusing the privileges of coastwise trade (including trade between the Mother-country and its colonies and possessions, and between one colony or possession and another) to countries in which the corresponding trade is confined to ships of their own nationality, and also to the laws affecting shipping, with a view of seeing whether any other steps should betaken to promote Imperial trade in British vessels." Metric system. Resolution, —" That it is advisable to adopt the metric system of weights and measures for use within the Empire, and the Prime Ministers urge the Governments represented at this Conference to give consideration to the question of its early adoption." Mutual protection of patents. Resolution, —"That it would tend to the encouragement of inventions if some system for the mutual protection of patents in the various parts of the Empire could be devised. That the Secretary of State be asked to enter into communication with the several Governments in the first instance and invite their suggestions to this end." Purchase of cables. Resolution, —" That it is desirable that in future agreements as to cable communications a clause should, wherever practicable, be inserted reserving to the Government or Governments concerned the right of purchasing on equitable terms and after due notice all or any of the cables to which the agreements relate." Postage on newspapers and periodicals. Resolution, —" That it is advisable to adopt the principle of cheap postage between the different parts of the British Empire on all newspapers and periodicals published therein, and the Prime Ministers desire to draw the attention of His Majesty's Government to the question of a reduction in the outgoing rate. They consider that each Government shall be allowed to determine the amount to which it may reduce such rate, and the time for such reduction going into effect." Professional employment in Transvaal and Orange River Colony. Resolution, — "That in arranging for the administration of the Transvaal and the Orange Eiver Colony it is desirable that provision should be made that duly qualified members of the learned and skilled professions now admitted and hereafter to be admitted to practice in the self-governing colonies be allowed to practice within the newly acquired territories, on condition of reciprocal treatment in the colonies concerned."

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Queen Victoria memorial. Contributions to be recommended to their respective Parliaments by the Premiers : The Dominion of Canada, £30,000; the Commonwealth of Australia, reply not yet received ; New Zealand, not less than £15,000; the Cape Colony,-£20,000 ; the Colony of Natal, not exceeding £10,000; the Colony of Newfoundland, £2,000.

S'UMMAEY OF PROCEEDINGS.

In a telegram of the 23rd January last the Secretary of State intimated the desire of His Majesty's Government to take advantage of the presence in London of the Prime Ministers of the various self-governing colonies in connection with His Majesty's coronation to discuss with them various important questions of general interest. The subjects indicated in that telegram were the political and commercial relations of the Empire and its naval and military defence. The various Governments were also invited to furnish a statement of any subjects which they thought might usefully be discussed, and, with a view to facilitate and give a definite direction to the discussion, to furnish the text of any resolutions which they might desire to submit to the Conference. The list of the subjects suggested in response to this request, and the text of the resolutions proposed, are appended (pp. ). In addition to the Prime Ministers, the Conference enjoyed the advantage of the presence at its meetings of the Minister of Defence for the Commonwealth of Australia, and of the Canadian Ministers of Customs, Militia and Defence, of Finance, and the Canadian Postmaster-General. The Secretary of State for War, the First Lord of the Admiralty, and the President of the Board of Trade were also present at the discussion of the questions affecting their special Departments. As in the case of the last Conference in 1897, it was decided that the proceedings of the Conference should in the first instance be confidential, in order that the discussion might be as free as possible, and that the members might be able to set out fully and frankly the special difficulties and considerations which affected them in the practical consideration of the different subjects ; and when, at the close of the proceedings, the question of their publication was discussed it appeared that some of the members were averse to this course. The full report must therefore continue to be regarded as confidential, and, as on the last occasion, only the statements made by His Majesty's Ministers in which they indicated generally the views of His Majesty's Government on the various subjects, and a summary of the general results and the text of the various resolutions passed, are now made public. The proceedings were opened by the Secretary of State for the Colonies in the following speech:— The Secretary of State : I have made arrangements to have a full shorthand report of the whole of our proceedings, and I shall endeavour, as far as possible, to arrange that each day's report shall be sent to each of you before the next meeting. These reports will, of course, be treated by all of us as absolutely confidential —at all events, for the present. What we desire is a perfectly free discussion, which we could hardly expect if that understanding were not arrived at; but at the close of your proceedings we will then consider whether anything, and, if so, what, should be given to the public. No doubt some of our conclusions will be made public, and it may possibly be found on looking through the reports it may be desirable that more should be published. At all events, what I wish to explain is that that will be a matter for subsequent decision, and nothing will be published without the consent of the persons concerned. And now, gentlemen, it is my duty, on behalf of His Majesty's Government, to thank you for your presence here, and to give you, on their behalf and on behalf of the people of this country, a most hearty welcome. We know how sincerely you have shared our sorrow at the serious illness of the King, and we know also how you share our joy that the illness appears to be passing away, and that we confidently entertain an expectation that the King will be wholly recovered at a period earlier than, perhaps, we had at first dared to anticipate. The whole country has been darkened by the shadow of this serious calamity. It is lightening now; but at the same time we all feel much disappointment —and I am sure no one regrets it more than the King himself—that this mishap should have interfered with the ceremonies of the coronation, and that this disappointment should have been caused to so many of His Majesty's subjects who have come from all parts of his dominions in order to witness and take part in his coronation, and to pay to him their loyal respect and to acclaim him as the symbol of Imperial union. But you came here, gentlemen, for two purposes. You have come here, of course, to take your part —and a very prominent part—in the ceremonies of the coronation as the representatives of the great nations across the seas, but you have also come for the purpose of a business Conference, which we open to-day. I cannot, I think, overestimate the importance of such Conferences as these. Even if they should lead to nothing absolutely substantial in the way of practical resolutions, yet at the same time I am convinced that they are of infinite value and a great gain to the whole Empire, inasmuch as they afford an opportunity for a review of the policy of the Empire by the representatives of the

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great self-governing colonies. It is natural that I should, at this time, recall our previous Conference in 1897. I find that of the twelve gentlemen who took part in that most interesting Conference only four are with us to-day. One of our then colleagues, Mr. Harry Escombe, has since died. The Empire has been deprived of his services,- and all those of us who had the opportunity of making his acquaintance and of appreciating his charming personality will join in the regret which was so greatly felt in his own colony. But the main changes in our Conference result from political vicissitudes, and, above all, from the very welcome Federation of the Australian Commonwealth. But, although we are lessened in number from that change in composition, I believe that we are all animated by the same spirit, that we all have the same paramount object at heart— namely, if we possibly can, to draw closer the bonds which unite us, and to confirm and establish that Imperial unity upon which the security and, I think I may add, the very existence of the Empire depends. I say our paramount object is to strengthen the bonds which unite us, and there are only three principal avenues by which we can approach this object. They are through our political relations in the first place ; secondly, by some kind of commercial union ; in the third place, by considering the questions which arise out of Imperial defence. These three great questions were considered at the last Conference, and I think it is clear they must form the principal subject of our deliberations on this occasion, and, indeed, of those of any future Conferences which may afterwards be held. Political Eelations. Now, as to the first point—the question of our political relations. In 1897 the Premiers came to three resolutions. They resolved, in the first place, with, I think, two dissentients, that our present arrangements are satisfactory under existing conditions. They passed a resolution, in the second place, in favour of a federal union of all colonies geographically connected, and we rejoice that that aspiration, at any rate, has been accomplished so far as Australia is concerned, and I think I may say that it is now almost in sight in the case of South Africa. And, thirdly, they resolved that it was desirable that periodical Conferences of a similar character should be held for the consideration of matters of common interest. Well, then, gentlemen, what I put to you is, Can we make any advance to-day upon these proposals'? I may be considered, perhaps, to be a dreamer, or too enthusiastic, but I do not hesitate to say that in my opinion the political federation of the Empire is within the limits of possibility. I recognise as fully as any one can do the difficulties which would attend such a great change in our constitutional system. I recognise the variety of interests that are concerned : the immense disproportion in wealth and the population of the different members of the Empire ; and, above all, the distances which still separate them, and the lack of sufficient communication. These are difficulties which at one time appeared to be, and indeed, were, insurmountable. But now I cannot but recollect that similar difficulties almost, if not quite, as great have been surmounted in the case of the United States of America. And difficulties, perhaps not quite so great, but still very considerable, have been surmounted in the federation of the Dominion of Canada ; and therefore I hold that as we must put no limits to science, as the progress which has already been made is only an indication of the progress which may be made in the future, I hold and say that these difficulties may be overcome, and at all events that we should cherish this ideal of closer union in our hearts, and that, above ail, we should do nothing, either now or at any future time, to make it impossible. We have no right to put by our action any limit to the Imperial patriotism of the future; and it is my opinion that as time goes on there will be a continually growing sense of the common interests which unite us, and also, perhaps, which is equally important, of the common dangers which threaten us. At the same time I would be the last to suggest that we should do anything which could by any possibility be considered premature. We have had within the last few years a most splendid evidence of the results of a voluntary union without any formal obligations, in the great crisis of the war through which we have now happily passed. The action of the self-governing colonies in the time of danger of the Motherland has produced here a deep and a lasting impression. We are profoundly grateful to you for what you have done. It has created a sense of reciprocal obligation. It has brought home to all of us the essential unity of the sentiment which unites us and which pervades all parts of His Majesty's dominions. And lam glad on this occasion to recognise the material aid which you have afforded. I propose to lay on the table a document which I think will be interesting, and which shows in a comparative form the assistance which has been given to us, both in men and in money, by the self-governing colonies. It is a remarkable testimony to their loyalty and their devotion to the Imperial interests. But I, myself, greatly as I value this aid, clearly as I recognise the assistance which it has been to us, and the splendid quality of the troops that you have sent, and their splendid behaviour when tested on the field of battle—l attach more importance to the moral support which we have always received from you. That has been a splendid answer, and when foreign countries have competed, as they have done, in a campaign of malignant misrepresentation, it has been something for us who have represented the interests of the United Kingdom to be able to point to the unbiassed testimony which has been given by the free colonies and dominions of the Empire to the righteousness of our cause. I feel, therefore, in view of this it would be a fatal mistake to transform the spontaneous enthusiasm which has been so readily shown throughout the Empire into anything in the nature of an obligation which might be at this time unwillingly assumed or only formally accepted. The link which unites us, almost invisible as it is, sentimental in its character, is one which we would gladly strengthen, but at the same time it has proved itself to be so strong that certainly we would not wish to substitute for it a chain which might be galling in its incidence. And therefore upon this point of the political relations between the colonies and ourselves His Majesty's Government, while they would welcome any approach which might be made to a more definite and a closer union, feel that it is not for them to press this upon you. The demand, if it comes, and when it comes, must come from the colonies. If it comes it will be enthusiastically received in this country.

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And in this connection I would venture to refer to an expression in an eloquent speech of my right honourable friend, the Premier of the Dominion of Canada—an expression which has called forth much appreciation in this country, although I believe that Sir Wilfrid Laurier has himself in subsequent speeches explained that it was not quite correctly understood. But the expression was, "If you want our aid call us to your Councils." Gentlemen, we do want your aid. We do require your assistance in the administration of the vast Empire which is yours as well as ours. The weary Titan staggers under the too vast orb of its fate. We have borne the burden for many years. We think it is time that our children should assist us to support it, and whenever you make the request to us, be very sure that we shall listen gladly to call you to our Councils. If you are prepared at any time to take any share, any proportionate share, in the burdens of the Empire, we are prepared to meet you with any proposal for giving to you a corresponding voice in the policy of the Empire. And the object, if I may point out to you, may be achieved in various ways. Suggestions have been made that representation should be given to the colonies in either or in both Houses of Parliament. There is no objection in principle to any such proposal. If it comes to us, it is a proposal which His Majesty's Government would certainly feel justified in favourably considering; but I have always felt myself that the most practical form in which we could achieve our object would be the establishment or the creation of a real Council of the Empire to which all questions of Imperial interest might be referred, and if it were desired to proceed gradually, as probably would be our course—we are all accustomed to the slow ways in which our Constitutions have been worked out —if it be desired to proceed gradually, the Council might in the first instance be merely an advisory Council. It would resemble in some respects the advisory Council which was established in Australia, and which, although it was not wholly successful, did nevertheless pave the way for the complete federation upon which we now congratulate them. But, although that would be a preliminary step, it is clear that the object would not be completely secured until there had been conferred upon such a Council .executive functions, and perhaps also legislative powers, and it is for you to say, gentlemen, whether you think the time has come when any progress whatever can be made in this direction. In the absence of any formal constitution of the Empire, the nearest approach to such a Council is to be found in the Conference which we open to-day —a Conference, a meeting, of the principal representatives of the Motherland and also of the nations which, together with the United Kingdom, constitute the Empire. And I observe upon the paper of subjects which will be distributed to you, and of which notice has been given for consideration at further meetings of the Conference, that the Premier of New Zealand, on behalf of that colony, has made a proposal for transforming these Conferences—which have been held hitherto rather casually, and only in connection with special occasions—into a periodical meeting. If this were done, or if an Imperial Council were established, it is clear that the two subjects which would immediately call for its attention are those which I have already mentioned—of Imperial defence and commercial relations. And we invite your special attention to these two subjects on the present occasion. Imperial Defence. As regards Imperial defence, I propose to lay before you, for your information, a paper (Appendix I.) which will show the comparative amount of the ordinary naval and military expenditure of the United Kingdom and of the different self-governing colonies. You will find that in the case of the United Kingdom the cost of our armaments has enormously increased since 1897. That increase is not entirely due to our initiative, but it is forced upon us by the action of other Powers who have made great advances, especially in connection with the navy, which we have found it to be our duty and necessity to equal. But the net result is extraordinary. At the present moment the estimates for the present year for naval and military expenditure in the United Kingdom—not including the extraordinary war expenses, but the normal estimates—involve an expenditure per head of the population of the United Kingdom of 295. 3d.—295. 3d. per head per annum. Sir Wilfrid Laurier : Is the military and naval together ? The Secretary of State : Military and naval together. In Canada the same items involve an expenditure of only 2s. per head of the population, about one-fifteenth of that incurred by the United Kingdom. In New South Wales —I have not the figures for the Commonwealth as a whole, but I am giving those as illustrations —and I find that in New South Wales the expenditure is 3s. 5d.; in Victoria, 3s. 3d.; in New Zealand, 3s. 4d.; and in the Cape and Natal I think it is between 2s. and 3s. Now, no one, I think, will pretend that that is a fair distribution of the burdens of Empire. No one will believe that the United Kingdom can for all time make this inordinate sacrifice. While the colonies were young and poor, in the first place, they did not offer anything like the same temptation to the ambitions of others ; and, in the second place, they were clearly incapable of providing large sums for their own defence, and therefore it was perfectly right and natural that the Mother-country should undertake the protection of her children. But now that the colonies are rich and powerful, that every day they are growing by leaps and bounds, their material prosperity promises to rival that of the United Kingdom itself, and I think it is inconsistent with their position —inconsistent with their dignity as nations—that they should leave the Mother-country to bear the whole or almost the whole of the expense. Justification of union is that a bundle is stronger than the sticks which compose it, but if the whole strain is to be thrown upon one stick there is very little advantage in any attempt to put them into a bundle. And I would beg of you in this relation to bear in mind that you are not asked — your people are not asked —to put upon their own shoulders any burden for the exclusive advantage of the Mother-country. On the contrary, if the United Kingdom stood alone, as a mere speck on the northern sea, it is certain that its expenditure for these purposes of defence might be immensely curtailed. It is owing to its duties and obligations to its colonies

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throughout the Empire ; it is owing to its trade with those colonies —a trade in which, of course, they are equally interested with ourselves—that the necessity has been cast upon us to make these enormous preparations. And I think, therefore, you will agree with me that it is not unreasonable for us to call your serious attention to a state of things which cannot be permanent. I hope that we are not likely to make upon you any demand which would seem to you to be excessive. We know perfectly well your difficulties, as you probably are acquainted with ours. Those difficulties are partly political, partly—principally, probably —fiscal difficulties. The disproportion to which I have called your attention cannot under any circumstances be immediately remedied, but I think that something may be done —I hope that something will be done—to recognise more effectually than has hitherto been done the obligation of all to contribute to the common weal. In respect to this matter we again owe it to the initiative of the Government of New Zealand that proposals have been laid before us for our consideration. I myself intend to circulate papers which bear upon the subject, and which will explain to you the views which are taken by the Admiralty and the War Office upon these matters; and at subsequent meetings of this Conference I shall, with your permission, invite the attendance of representatives of these Departments, and I hope at the same time you may see fit to bring with you any Ministers or other officials whose advice and assistance you would desire in the consideration of the matter. Commercial Eelations. I pass on, then, gentlemen, to the second point—the question of commercial relations, and in regard to this I wish to say, what I have already stated in answer to inquiries which I received before the Conference, that every question is an open question for full and free discussion. We rule nothing out of order. We do not pretend to debar the consideration of any subject, whatever its purport may be, but we do not propose ourselves to formulate any proposals in the first instance. We think it is absolutely necessary in a matter of this kind, which involves so many considerations of detail, that there should be in the first instance a free interchange of opinion in order that we may not put before you suggestions which perhaps we should find afterwards were altogether out of harmony with your views, but if it appears hereafter desirable, after full discussion, to make proposals I have no doubt we shall be able to do so. In reference to this matter, also, I am placing papers before you which will give you a very full account of the present state of trade between the colonies and the Mother-country, and also a matter which is very important for us to consider, of the condition of trade between the United Kingdom and foreign countries ; and, without going into detail, I would say there are two salient facts which appear on the surface of these fuller returns which I shall put before you. The first is this : that if we chose —that is to say, if those we represent chose —the Empire might be self-sustaining; it is so wide; its products are so various ; its climates so different, that there is absolutely nothing which is necessary to our existence, hardly anything which is desirable as a luxury, which cannot be produced within the borders of the Empire itself. And the second salient fact is that the Empire at the present time, and especially the United Kingdom—which is the great market of the world—derives the greater part of its necessaries from foreign countries, and that it exports the largest part of its available produce—surplus produce—also to foreign countries. This trade might be the trade, the inter-Imperial trade of the Empire. It is at the present time, as I say, a trade largely between the Empire and foreign countries. Now, I confess that to my mind that is not a satisfactory state of things, and I hope that you will agree with me that everything which can possibly tend to improve the interchange of products between the different parts of the Empire is deserving of our cordial encouragement. What we desire, what His Majesty's Government has publicly stated to be the object for which they would most gladly strive, is a free interchange. If you are unable to accept that as a principle, then I ask you how far can you approach to it'? If a free interchange between the different parts of the Empire could be secured it would then be a matter for separate consideration altogether what should be the attitude of the Empire as a whole or of its several parts towards foreign nations ? The first thing we have to do, the thing which touches us most nearly, is to consider how far we can extend the trade between the different parts of the Empire—the reciprocal trade. Our first object then, as I say, is free-trade within the Empire. We feel confident—we think that is a matter which demands no evidence or proof —that if such a result were feasible it would enormously increase our inter-Imperial trade; that it would hasten the development of our colonies; that it would fill up the spare places in your lands with an active, intelligent, and industrious, and, above all, a British population; that it would make the Mother-country entirely independent of foreign food and raw material. But when I speak of free-trade it must be understood that I do not mean by that the total abolition of Customs duties as between different parts of the Empire. I recognise fully the exigencies of all new countries, and especially of our selfgoverning colonies. I see that your revenue must always probably, and certainly for a long while to come, depend chiefly upon indirect taxation. Even if public opinion were to justify you in levying direct taxation, the cost of collecting it in countries sparsely populated might be so large as to make it impossible. But in my mind, whenever Customs duties are balanced by Excise duties, or whenever they are levied on articles which are not produced at home, the enforcement of such duties is no derogation whatever from the principles of free-trade as I understand it. If, then, even with this limitation, which is a very important one, which would leave it open to all colonies to collect their revenues by Customs duties and indirect taxation, even if the proposal were accepted with that limitation, I think it would be impossible to overestimate the mutual advantage which would be derived from it, the stimulus to our common trade, and the binding force of the link which such a trade would certainly create. But, gentlemen, I am unfortunately aware that up to the present time no proposal so farreaching has come to us from any of the colonies. Three proposals have been made for the con-

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sideration of the present Conference, also on the initiative of New Zealand. The first and the most important one is that a preferential tariff should be arranged in favour of British goods which are now taxable in the respective colonies and in the United Kingdom. And although no proposal comes to us from Canada, I am, of course, aware that similar questions have been recently specially discussed very actively and very intelligently in the Dominion, and that a strong opinion prevails there that the time is ripe for something of this kind. And therefore, with your permission, I would propose to examine this proposition, not in details, but so far as its general principles are concerned. In 1897 I would remind you that the Premiers then unanimously undertook to consult with their colleagues, and to consider whether a preference might not be given on their Customs tariff for goods imported from the United Kingdom. This was a proposal without any reciprocal obligation. It was regarded by the Premiers at the time as a proposal which might be made in consideration of the fact that the United Kingdom was the largest and the best and the most open market in the world for all the products of the colonies. But nothing whatever has come of the resolution up to the present time. No step has been taken to give any effect to it. That, I think, is due partly to circumstances which we could not have anticipated—partly, indeed, to the Federation of Australia, partly also to the existence of the war; but it is a question which, no doubt, may now be taken up with a greater hope of something coming from it. But in Canada, before the Conference of 1897, the Canadian Government had decided to give us a preference which then amounted to 25 per cent., and this subsequently was increased to 33J per cent. This was a preference voluntarily accorded by Canada on British taxable goods imported into the Dominion. Canada, therefore, has anticipated the general proposal of the Premiers, and the time which has elapsed has been sufficient to enable us to form a judgment of the effect of an arrangement of this kind, and I have to say to you that while I cannot but gratefully acknowledge the intention of this proposal and its sentimental value as a proof of good will and affection, yet that its substantial results have been altogether disappointing to us, and I think they must have been equally disappointing to its promoters. I shall circulate to you another paper (Appendix VIII.) which contains very fully the whole of the statistics showing the course of trade in Canada since 1897, and the results of the preferential tariff. But I may give you in a word or two the most important conclusions. lam comparing now the import trade of British goods into Canada in the year 1896-97 with the last year for which I have the returns —1900-1. The total imports of Canada increased in that period £14,500,000 sterling, and the rate of 62 per cent. That shows an enormously increased prosperity in the Dominion; it shows how the energy of its inhabitants is developing its trade. Fourteen and a half millions and sixty-two per cent. ; if you will kindly bear in mind those figures as showing the total result of all the import trade. Of that the free trade, upon which no duty is levied and upon which therefore no preference is given to British goods, increased £6,250,000, or at the rate of 67 per cent. The general trade—that is, the trade from foreign countries which came under the general tariff—also increased £6,250,000, or at the rate of 62 per cent. But the preferential trade—the trade upon which this advantage had been given to British goods, only increased in the same time £2,000,000, and only at the rate of 55 per cent. So that the rate of increase under the preferential tariff was actually less than under the general tariff, and also under the free tariff. Or taking it in another way, the total increase of the trade of Canada with foreigners during the period named—this is including both the trade subject to the tariff and also the free trade—was 69 per cent., while the total increase of British trade was only 48 per cent. Well, now, what is the cause of this ? Up to 1885 British exports steadily increased to the Dominion of Canada. Then the Government of the day adopted a very severe protective tariff, which by the nature of things, perhaps, specially affected British goods. We are not the exporters, as a rule, of raw materials or of food. We therefore do not export the articles which Canada freely imports. We export manufactured goods, and it was against manufactured goods that the tariff was intentionally, I suppose, directed. The result pf that was that there immediately set in a continuous and rapid decline in the importation of British goods into Canada. Now, the preference which was given in 1897 has checked the decline, but there is very little increase. Practically the checking of that decline is the whole result which we can recognise as having followed the generous intentions of the Canadian Government. Foreign produce at the present time in Canada has still a lower average tariff than British produce, no doubt due to the fact that the foreign produce is, as 1 have said, as a rule of a character upon which lower duties are ordinarily levied; but the result is that while foreign imports have largely increased, the British imports have largely decreased. But, now, I want to point out another thing which I think will be of great importance, and which I am sure the Government of Canada must have taken into their serious consideration. What return has been made to them by the foreigner for the advantage which the foreigner has derived from their tariff? The exports from Canada to foreigners have decreased 40 per cent., while the exports from foreigners to Canada have, as I have said, largely increased. On the other hand, in spite of the tariff, in spite of everything in the natural course of trade and communication, the exports to the United Kingdom have increased 85 per cent, in fifteen years, and the net result, which I desire to impress upon you, is that, in spite of the preference which Canada has given us, their tariff has pressed and still presses with the greatest severity upon its best customer, and has favoured the foreigner who is constantly doing his best to shut out her goods. Now, what is the present position ? I believe it is true of Canada —it is true, I believe, of every colony—we take already by far the largest proportion of colonial exports; but there is not the least doubt that we might double or treble the amount that we take, but we cannot do so until we have the reciprocal advantages, and until you take in exchange a larger proportion of our goods, and so enable us to pay for the imports which we should receive from you. And I think the very valuable experience, somewhat disap2—A. 7.

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pointing and discouraging as I have already pointed out, but the very valuable experience which we have derived from the history of the Canadian tariff, shows that while we may most readily and most gratefully accept from you any preference which you may be willing voluntarily to accord to us, we cannot bargain with you for it; we cannot pay for it unless you go much further and enable us to enter your home market on terms of greater equality. lam making that statement as a general statement, but I am well aware that the conditions of the colonies vary immensely, and that a good deal of what I have said does not apply to the Colony of the Cape or the Colony of Natal. But so long as a preferential tariff, even a munificent preference, is still sufficiently protective to exclude us altogether or nearly so, from your markets, it is no satisfaction to us that you have imposed even greater disability upon the same goods if they come from foreign markets, especially if the articles in which the foreigners are interested come in under more favourable conditions. Now, I have said that New Zealand has made three proposals for our consideration. As regards the other points, they involve a great deal of detail, and therefore I should wish to reserve any observations which I may have to make upon them, except to call special attention to the proposals of New Zealand that we should consider the question of communications between the colonies and the Mother-country. I think at the present time that is a question of supreme importance. The bounties which other countries are lavishly giving to their shipping constitutes a real danger to inter-Imperial trade ; these bounties constitute an unfair competition. It has been said sometimes that the trade follows the flag, and that has been disputed. I am afraid it does not do so necessarily and certainly as we should desire, but trade does follow the shipping, and if by any cause and by any fault of ours the shipping transport between the colonies and ourselves is allowed to get into foreign hands I can only say that in my opinion I think it will reduce materially the interchange of goods between ourselves and the colonies; and from every point of view, therefore, I regard it as most important that the Conference should give special attention to this proposal of New Zealand. Gentlemen, I think I have said all—perhaps, even more than I need to have said—in opening this Conference. In conclusion, I would add that I cannot conceal from myself that very great anticipations have been formed as to the results which may accrue from our meeting. Possibly those anticipations are too sanguine ; possibly they have been formed by persons who are insufficiently acquainted with our difficulties, and do not make allowances for the obstacles in our way. The questions have, I think, occupied greater attention in this country than they have, perhaps, at present in the colonies, which have been taken up with matters of more exclusively domestic concern. But here, no doubt, there is a readiness, and I would say an anxiety, to see these important questions dealt with, and dealt with in a fashion which will bring us more closely together. We in the United Kingdom for centuries past have been holding our house like a strong man armed against all our enemies. We have felt throughout all the period the burdens as well as the privileges and advantages of Empire. We see now that all other nations are also arming to the teeth. I want you to consider for a moment what is the present position of the smaller nations with whom in population you may more closely compare yourselves. What is the position of such nations in Europe as Greece, the Balkan States, or Holland, or the South American Eepublics ? Why, gentlemen, they are absolutely independent nations, accordingly they have to bear burdens for their military or naval defences, or for both, as the case may be, to which yours bear no proportion whatever. I point out to you, therefore, that in the clash of nations you have hitherto derived great advantage, even from a purely material standpoint, from being a part of a great Empire. But the privileges which we enjoy involve corresponding obligations. The responsibilities must be reciprocal and must be shared in common, and I do not think that any Empire may be said to be on a sure foundation which is not based upon recognised community of sacrifices. Gentlemen, I have, perhaps, in some of my remarks, gone a little beyond my province, but I rely upon your kindness to excuse it. I thought it desirable, in opening this Conference, that some observations of a general character should be put before you, in order that you might see, as it were, into the minds of the Imperial Government. Ido not know how far you will be prepared to proceed to-day with our deliberations. I imagine, at all events, you will reserve all discussion in detail to a subsequent period, and I shall be much obliged, if that is the case, if you would arrange with me what dates and what hours would be most convenient to you for our meetings, and any other matters connected with the conduct of the Conference which you would desire to bring forward. NAVAL DEFENCE. It was decided that the first question that should be discussed was that of naval defence, as to which Mr. Seddon had given notice that he would move a resolution : — " That the Australian Squadron be strengthened (a) by increasing the number of cruisers; (b) by withdrawing some of the inferior gunboats, and replacing them with modern and betterclass cruisers ; and (c) by adding torpedo catchers or destroyers, if deemed necessary. The extra cost of maintenance entailed to be defrayed in the same proportion as provided under the existing agreements, and on population basis." His Majesty's Government had also been furnished with the accompanying memorandum by the Minister of Defence for the Commonwealth : — Department of Defence, Melbourne, 15th March, 1902. Minute to the Right Honourable the Prime Minister as to Naval Defence. * I have the honour to submit for consideration my views as to the means to be adopted so as to provide for the naval defence of Australia.

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I.—Preliminary Observations. 1. It will, I think, be generally conceded that it is the duty of the Commonwealth to adequately contribute to the defence of Australia and of its floating trade. We admit this obligation in regard to our local military defence, but we must remember that naval forces require to be even more efficient than military forces, which have the great advantage of local knowledge to assist them in any active operations in their own country. 2. So long as the sea supremacy of the Mother-country is maintained Australia is fairly secure from invasion, but in time of war we would be exposed to attacks upon the floating trade and to raids on our coastal towns by powerful cruisers. It is therefore obligatory that adequate means should be taken to provide against such emergency. 3. Owing to the progress made by foreign Powers in the construction and maintenance of powerful sea-going cruisers, the present Auxiliary Squadron has become inadequate, and the Commonwealth is confronted with the immediate necessity of arranging for up-to-date naval protection being provided. 4. Bear-Admiral Sir Lewis Beaumont, Commander-in-Chief of the Australian Station, has already given his views on the present necessities of Australian naval defence in a letter to the Governor-General, which was presented to Parliament on the 16th August, 1901, from which I extract the following :— " (1.) I can give what, in my opinion, are the obligations of the Federal Government in respect of the naval defence of the Australian Commonwealth. " (a.) They should cause to be maintained on the Australian Station, as defined by the Admiralty, a squadron of at least six cruisers in commission, two of them first-class cruisers of 7,000 to 8,000 tons displacement, and the others second-class cruisers of the improved ' Highflyer ' type. " (b.) There should, in addition, be two such second-class cruisers in reserve. " (c.) These vessels ought to be replaced gradually by more modern vessels, as the development of naval construction renders it desirable or the increase of foreign fleets makes it necessary. " (d.) The vessels should be under the Admiral in command of His Majesty's ships on the station, the crews subject to the Naval Discipline Act, and embarked under the same terms of engagement as in the Eoyal navy. " (c.) The headquarters of the squadron ought to remain at Sydney, owing to the repairing facilities and convenience of the existing depots there; but the ships should be attached in turn for ordinary peace service, when not required for fleet exercises, to suitable ports in each State, where the Federal Government should give facilities for the gradual establishment of the secondary naval bases which will be essential in war as regards coal, stores, and repairs. " The above gives, in broad lines, the naval force adequate for the naval defence of Australia at the present time. It will be seen, from the size and number of the ships required, from the necessity which will undoubtedly arise of replacing them from time to time by more modern ships, from the fact that they must be continuously manned by trained officers and men, and that the ships must not only be maintained in commission but must be gradually provided with new bases, that it is beyond the power of the Commonwealth at the outset to create such a force. " (2.) It follows, therefore, that such a force can only be acquired and maintained by arrangement with the Imperial Government, and I believe that if this course was adopted it would also follow that the greatest amount of good would be maintained at the smallest possible cost. " (3.) In view of the Federal Government providing for the immediate future an adequate and up-to-date sea-going fleet for the defence of Australian floating commerce and the protection of Australian territory, I consider that it should take no part in the creation or maintenance of naval reserves or State naval forces, which experience has shown cannot be utilised in a manner at all commensurate with their cost, or assist, except within too narrow limits, in the defence of the Commonwealth. " The future may see the creation of an Australian navy, but for the present the safety and welfare of the Commonwealth require that the naval force in Australian waters should be a sea-going fleet of modern ships, fully equipped, fully manned with trained crews, homogeneous as to type and personnel, and under one command. " For the Federal Government to form out of the existing naval organizations a permanent force as the nucleus of the Naval Defence Force, the main body of which would be derived from naval brigades, as suggested in Your Excellency's letter, would not be sufficient, unless the force is only intended to supplement the crews of His Majesty's ships in war; if not, then modern ships would have to be provided and maintained by the Federal Government for the officers and men of the Commonwealth naval force, in which they could be trained at sea, and a part maintained at all times in a state of efficiency and readiness for war, a system which would be much more costly and less efficient than if the ships and men were provided by arrangement with the Imperial Government." We have in the above clear statement of Admiral Beaumont the opinion of an able and experienced naval officer on the question, and it is fortunate that we have been placed in possession of his views, inasmuch as they represent an expert and impartial opinion worthy of the greatest respect and entitled to the fullest consideration.

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II. —Existing Naval Forces. 5. The Commonwealth has taken over the local naval forces from the States of New South Wales, Victoria, Queensland, and South Australia, which are at present maintained at an annual cost of about £75,000. These forces consist of 242" permanent officers and men, and 1,637 partially paid members of naval brigades. 6. For years past no means have been provided in New South Wales for giving to the local naval force any sea training. They have no ships, and are therefore merely sailors drilled on shore, and would be of little value as a naval force in time of war. In Victoria there is the harbour-defence ship " Cerberus " and four torpedo-boats, but the existing means are inadequate for obtaining effective sea training for the men. In Queensland there are the gunboats " Gayundah " and " Paluma," and in South Australia there is the gunboat "Protector"; and in both of these States a limited amount of sea training is carried out. The Colonial Defence Committee has stated, with regard to these local harbour-defence ships, that it is difficult to obtain from them an effect commensurate with the outlay entailed. 7. These local forces, maintained under existing conditions, appear, therefore, to be of small value for naval defence; and if they are to be organized in the future so as to provide a force of trained seamen available for supplementing the crews and for the manning of sea-going cruisers in time of war, suitable ships must be provided in which to train the officers and men at sea. 111. —Eecommendations for Immediate Future. 8. Whatever maybe done in the future, if we accept, as I think we must, Admiral Beaumont's opinion that "it is beyond the power of the Commonwealth at the outset to create a force adequate for the naval defence of Australia, and that such a force can only be acquired and maintained by arrangement with the Imperial Government," it is absolutely necessary, for a time at any rate, to depend upon the Eoyal navy for our naval defence. The Commonwealth under the existing agreement pays the Admiralty £106,000 a year, and New Zealand pays £20,000 a year ; but, as a more powerful fleet is required, a greater contribution will be necessary under a new arrangement. lam informed that the cost of the annual maintenance of the "Eoyal Arthur" alone is more than our whole contribution of £106,000. 9. I would recommend that until a more permanent basis for the naval defence of the Empire is decided upon, the naval defence of the Commonwealth be carried out on the following basis: — (a.) That the existing agreement with the Imperial Government be readjusted and extended for ten years (unless cancelled sooner by mutual consent). The number and class of ships to be stationed in Australian waters, the annual contribution, and all other matters to be definitely dealt with in such revised agreement. (b.) That the existing naval militia forces be made effective for supplementing the manning of sea-going ships in time of war, and that two ships commanded by officers of the Eoyal navy be allotted by the Admiralty for their naval instruction, and with that object to visit the various ports throughout the year. The militia naval forces to be available for the protection of the Commonwealth on land as well as on sea. (c.) That expert opinion be obtained as to what extent the "Cerberus," "Protector," gunboats, torpedo-boats, and existing armaments can be profitably utilised. (d.) That the permanent naval defence forces now existing in Victoria, New South Wales, and Queensland be reduced in strength, and only a staff sufficient for the instruction of the naval militia on shore be retained. It would seem to be absolutely necessary that in any such new arrangement provision should be made for one or two powerful cruisers to be stationed in Australian waters capable of successfully resisting an attack by similar warships of foreign nations. IV. —Proposal for an Australian Navy. 10. If it were desirable for Australia to have a navy of her own, maintained altogether by the Commonwealth, we could in that case buy our own ships of war, man them in our own way, and be quite independent of the Imperial navy. 11. In order to provide even the small squadron proposed by Admiral Beaumont of two first-class and six second-class cruisers, together with depots and stores, would nrobably cost £3,600,000 on the following basis :— £ Two first-class cruisers ... ... ... ... ... 1,000,000 Six second-class cruisers ... ... ... ... ... 2,500,000 Depots and stores —viz., naval yards, &c. ... ... ... 100,000 Total capital cost ... ... ... ... ... 3,600,000 12. The maintenance of this squadron in Australian waters, if fully manned and equipped in a way that would enable it to engage successfully the first-class cruisers of the enemy, with two of the second-class cruisers in use for training, say, two thousand men of the naval militia, would probably amount to about one million a year, including interest at 5 per cent, per annum on the capital cost. 13. It has been proposed, and the plan is much favoured by some, that during time of peace a squadron thus organized should only be manned with sufficient men to maintain the ships in working efficiency, and should be wholly employed in training the naval militia, and that in time of war it should be fully manned by such naval militia collected from the several ports of the Commonwealth. There would no doubt be a saving in maintenance by this course, but Admiral

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Beaumont is of opinion that a squadron thus mobilised and manned would not be able to meet on equal terms the powerful cruisers with highly trained crews that would be certain to be used against us, and that "for the present the safety and welfare of the Commonwealth require that the naval force in Australian waters should be a sea-going fleet of modern ships, fully equipped, fully manned with trained crews, homogeneous as to type and personnel, and under one command." 14. I am not prepared to recommend under existing conditions the establishment of an Australian navy. Even if it were established, I am afraid it would not be very efficient, for besides the enormous cost of replacing the fleet from time to time with more modern ships, there would be no change for the officers and crews, who would go on year after year in the same ships, subject to the same influences, and, I fear, with deteriorating effects. V. —The Permanent Naval Defence of the Empire. 15. In regard to defence, we must altogether get rid of the idea that we have different interests to those of the rest of the Empire, and we must look at the matter from a broad common standpoint. If the British nation is at war, so are we ; if it gains victories or suffers disasters, so do we; and therefore it is of the same vital interest to us as to the rest of the Empire that our supremacy on the ocean shall be maintained. There is only one sea to be supreme over, and we want one fleet to be mistress over that sea. 16. We are bound also to consider and to fully realise that we belong to a nation which for centuries has been mistress of the sea, and that the position we occupy in Australia to-day in being all British territory, and having always enjoyed peace and security, is absolutely attributable to the protection given us by the British flag. 17. We are accustomed to travel about the world for the purpose of trade or in pursuit of pleasure, and to feel when we visit foreign countries that our lives and property are secure and in specially safe keeping. We then realise fully the great privilege and advantage of being a British subject, and feel proud when we see the flag of our Motherland everywhere in evidence ready, willing, and able to protect us. 18. Our aim and object should be to make the Eoyal navy the Empire's navy, supported by the whole of the self-governing portions of the Empire, and not solely supported by the people of the British Isles, as is practically the case at the present time. It is, I think, our plain duty to take a part in the additional obligations cast upon the Mother-country by the expansion of the Empire and the extra burdens cast upon her in maintaining our naval supremacy. 19. If a proposal were adopted that the Empire should have one fleet maintained by the whole nation, every part contributing to its support on some plan to be mutually arranged, probably on that of the comparative trade of each country, and not necessarily on an uniform basis of contribution, what a splendid idea would be consummated, and what a bulwark for peace throughout the world would be established! Besides which, we would be doing our duty to the Mother-country, which has been so generous to us during all our early years. 20. If the Federations of Canada and Australia and the Colonies of South Africa and New Zealand were to agree to this great principle of one fleet for the Empire's naval defence, then the question of contributions and all other matters connected with it could be afterwards arranged by mutual agreement. I cannot think that for Canada and Australia to each have a few war-ships, and the Cape and New Zealand a few also, each independent of the other, is a plan suited to Empire; such a plan would seem to be in accord with the actions and sentiments of a number of petty States rather than in accord with the necessities and aspirations of a great free united people. 21. If such a plan can be brought about, it would be necessary for the " British Dominions beyond the Seas " to be adequately represented at the Admiralty, and I feel sure this could be arranged on a mutually satisfactory basis. In time of war there could not be any division of responsibility, and until a more extended federation of the Empire is established that responsibility would have to rest upon the Imperial Government. 22. It would be advisable that means should be provided for training boys in Canada, Australia, and other places, and for the drafting into the navy of a certain number annually, and greater facilities might possibly be given for officers entering the navy. By these means the personnel of the navy would consist to some extent of British subjects from different parts of the Empire, and this might in time have the effect of a greater personal interest in the navy being taken by the people living outside the British Isles than has hitherto been the case when all have been recruited from the Mother-country. 23. Great Britain spends annually on her army and navy about £50,000,000 (not including the South African war), or about £1 ss. per head of her population. If the Australian Commonwealth contributed in the same proportion it would amount to something like £5,000,000 a year; whereas our entire military and naval defence vote does not exceed £800,000 a year, or only about 4s. per head of our population. 24. It may, of course, be said that in building up another Britain in the Southern Hemisphere, thus providing another home for our countrymen, and by extending British influence and trade, we have been doing a greater work for the Empire than by contributing towards Imperial naval defence ; but I think the time has gone by for us to use such arguments, as both duty and stern necessity require that we shall stand shoulder to shoulder with the Motherland in the determination to maintain inviolate the integrity of the Empire. That this is the sentiment deep-rooted in the hearts of the Australian people has, I am proud to say, been shown during the South African war, which we have made our own, proving unmistakably to the world that our interests in war as well as in peace are indissolubly bound up with the country from which our fathers came, and to which we are all proud to belong.

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25. I would suggest that the Imperial Government should be consulted as to the advisability of holding a Conference in London, at which representatives from Canada, the Cape, New Zealand, and Australia might be asked to discuss and, if possible, arrive at a conclusion as to the views herein set forth, or any others that may be submitted having for their object the strengthening of the naval defence of the Empire, and that the conclusions arrived at should be then forwarded for the consideration of the Governments and Parliaments concerned. John Forrest, Minister of State for Defence. The Admiralty had furnished the memorandum appended for the information of the Conference, and the First Lord attended at the second meeting and made the following statement in further explanation and support of the considerations which govern the policy of the Board of Admiralty in regard to the control and distribution of the naval forces of the Empire : — " Mr. Chamberlain and gentlemen, the Admiralty has circulated a memorandum (Appendix IV.) which I think you all have before you. We endeavoured in the memorandum to confine ourselves to setting forward the nature of the problem which the Admiralty has to face on behalf of the Empire, and to indicate the extent of the burden which is thrown on the Mother-country. I need not say that I shall be happy to answer any questions that any of the colonial Premiers here present might wish to ask in elucidation of the general principle, and the facts stated in the memorandum. 1 would propose, if Mr. Chamberlain and the Premiers agreed, that when the Admiralty come to a detailed discussion with any colony or group of colonies, that those discussions should be held separately. The Admiralty is entirely at the disposal of Ministers if they will be kind enough to visit us and discuss the problem with us so far as it concerns their own colony. To-day I will merely endeavour to lay emphasis on two points which are contained within this memorandum. The first, on which I would lay the greatest stress, is the reason why we have eliminated from this memorandum any allusion to the word ' defence.' There was a time in this country, not so very long ago either, when naval strategists regarded the naval problem mainly from the point of view of defence. That, I submit, is altogether heretical. The real problem which this Empire has to face in the case of a naval war is simply and absolutely to find out where the ships of the enemy are, to concentrate the greatest possible force where those ships are, and to destroy those ships. That is the only possible method of protecting this Empire from the efforts which other navies may make to damage her commerce or her territory. It follows from this that there can be no localisation of naval forces in the strict sense of the word. There can be no local allocation of ships to protect the mouth of the Thames, to protect Liverpool, to protect Sydney, to protect Halifax. If we make any such attempt of the kind we should only be inviting disaster. It follows also that whatever local distribution of forces may be advisable and feasible in time of peace, in time of naval war there must be only one authority with full power and responsibility to the Empire to move the ships, to concentrate them where they can deal the most effective blow against the forces of the enemy; and that any separation of responsibility, any diminution of the power of that central authority, any risk of hesitation or delay in making a conjunction of the squadrons where they can deal the most effective blow, might have disastrous consequences. " The second point on which I wish to lay special stress is this : At present there is only one agreement between the Imperial Government and any group of colonial Governments in respect of naval affairs, although we have received generous—and independently proffered—aid from the Cape and from Natal—l allude to the Australasian agreement. Now, gentlemen, I attach great importance to that agreement, because the statesmen who negotiated it and signed it have led the way in what I may call the Imperial consideration of this question of naval policy. But, like every document that commences a policy, it has faults, and to my mind there is no greater in it than this : that the relations of the Australasian Governments to the Imperial are simply that of the man who pays to the man who supplies. The Australasian Governments pay us a certain contribution; for this contribution we supply them with a certain article. Now, this is good so far as it goes, but it does not, to my mind, go far enough. It does not give our New Zealand and Australian fellowcountrymen the sense of personal interest, of personal possession, in the British navy which I most of all desiderate for the future, and I want not only the colonial Governments to understand that on the naval protection of the Empire, exercised through a wise naval strategy, depends our future existence as a united Empire, but I want them to regard the navy as their own, at least as much as ours; and with that object I wish to see in the navy more colonial officers and a contribution of colonial seamen. I want, in fact, if I may use such a term, to increase the maritime spirit of the Empire. After all we are not in this country all sailors, yet we are all imbued with the maritime spirit. Here you have the great colonies covering vast geographical tracts of country :is there not a danger that in the far interior, unless we take precautions, the maritime spirit may be lost ? I want to bring Australasia, Canada, and South Africa to understand, in the sense that the average Englishman understands it, that the sea is the one material source of our greatness and our power; the main bond of union; the real source of our strength —if I may use such a mixed metaphor— that the sea is to the Empire as the breath of life ; but it cannot be done, I opine, so long as we are only receivers of money. I want to see from all parts of the Empire a personal contribution to the navy, so that it may not only be an abstract Admiralty to govern the navy, but an Admiralty that has won the confidence of the colonies, because the colonies understand its policy, and because in each colony there are officers and men belonging to the navy—an integral portion of the navy. Those are the two points, gentlemen, on which I wish to lay special stress, and I can only conclude, as I began, by saying that I am here at your service to answer any questions which you may wish to address to me." The Secretary of State : Do you propose to lay any definite suggestions at this stage of the Conference ?

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The First Lord of the Admiralty : We are, of course, prepared with definite suggestions. I did not know whether you would like to have them raised in general form at the meeting, or whether they should be raised separately between the Admiralty and Canada and New Zealand and the Commonwealth of Australia and Natal and the Cape. We have them here if the Conference desires to have them. The Secretary of State : I take it that the details in any case would have to be discussed probably separately, and that that would be the most convenient and quickest way of getting through our business; but I think that the Conference would probably like to discuss the general principles. What I rather anticipated was that you might be prepared to express in general terms what the Admiralty conceived would be the best scheme for carrying out the object which you have described, and also that we should take up the actual motion which is before the Conference in the name of the Premier of New Zealand. Ido not know whether I am speaking the views of my colleagues, but I imagine they would like to have your proposals as well as the proposals of New Zealand before them before a general discussion begins. The First Lord of the Admiralty : Well, then, if I may supplement my remarks on the suggestion of Mr. Chamberlain, of course I start with the Australasian agreement. Sir John Forrest and the Commander-in-Chief of the Australian Station, Sir Lewis Beaumont, have had many conferences on this subject. The memorandum which is now being circulated (Appendix IVa.) gives to the Conference the effect of carrying out the scheme on the general lines of the discussion between Sir John Forrest and Sir Lewis Beaumont. The general purport of it is this : that a certain squadron of up-to-date cruisers would be attached to the Australian Station. Of these cruisers we desire that at least one, if not two, should be manned exclusively by Australasians under the command of Imperial officers. We desire to establish a branch of the Eoyal Naval Eeserve in New Zealand and Australia, composed partly of men trained in this cruiser manned by Australasians and partly out of such materials as may be available from the existing naval brigades. The contribution which would be regulated under that scheme is stated in this memorandum, which, of course, can be discussed, and I want it to be clearly understood that the basis we have taken is the basis of discussion taken by Sir John Forrest with Sir Lewis Beaumont, and we thought that a fair and wise starting-point. There will be no difficulty in time of peace in arranging that this squadron should be attached to Australian waters, with this proviso, that I think it would be a real advantage for the ships of the squadron, especially for the ships manned by Australasians, that they should go to China, the East Indies, the Cape, and elsewhere, and work with the ships of other squadrons; but whenever they so do that ship could be replaced by a substitute from the squadron which she had gone to join. Therefore Ido not think there will be any difficulty in time of peace as to the proper allocation of the force whose headquarters would be Australasian. But the principles which are laid down, and on which I wish to lay great emphasis, are that in time of war this squadron must be available to fight the opponents, the attackers of the Empire, in whatever part of the Eastern seas their ships are to be found. Those principles, mutatis mutandis, could be applied to any of the other groups of colonies. This scheme may be taken as one which would be applicable to the altering circumstances of each case, either to Canada or South Africa, and not only applicable as a whole, but applicable in such parts as might be more feasible at the present moment in respect of those other groups of colonies. There is one old colony, of course, to which this particular form of agreement could not apply—that is, Newfoundland ; but, then, I hope the Admiralty will be able to debate with the Prime Minister, and arrive at an understanding as to that scheme for the establishment of a Naval Eeserve which was temporarily suspended owing to the fact that we found we had proceeded beyond our legal power. I may say that an Act of the Imperial Parliament recognising the enrolment of colonial fishermen in the Eoyal Naval Eeserve has now passed through all its stages in both Houses of Parliament, and is only awaiting the Eoyal assent, so that there is no further hindrance to arriving at an understanding between His Majesty's Government and Newfoundland on that point. From the general tenor of the discussion which followed, it was clear that the conditions and circumstances of the several colonies were so different that further discussion with a view to framing a general resolution would not be likely to lead to any practical result, and it was suggested that the representatives of the colonies should arrange for separate private meetings with the First Lord of the Admiralty, in order to settle with him what should be the form and extent in which they might severally best contribute to the naval defence of the Empire, and that the results arrived at should be reported to the Conference and recorded in the proceedings. This suggestion was readily agreed to, and the result of the informal discussions which followed is embodied in the following memorandum :— Memorandum by the First Lord of the Admiralty. Accompanied by the Senior Naval Lord and the Financial Secretary, my colleagues of the Board of Admiralty, and assisted by the Director of Naval Intelligence, I have now had interviews with the Premiers of His Majesty's Government in Cape Colony, Natal, Newfoundland, and New Zealand, and with the Premiers and Ministers of Defence of His Majesty's Government of the Commonwealth of Australia and the Dominion of Canada; and, as the result, the Board of Admiralty have received the following offers of assistance towards the naval expenses of the Empire (see Appendix): — Cape Colony: £50,000 per annum to the general maintenance of the navy. No conditions. Commonwealth of Australia : £200,000 per annum to an improved Australasian Squadron, and the establishment of a branch of the Eoyal Naval Eeserve. Natal: £35,000 per annum to the general maintenance of the navy. No conditions. Newfoundland : £3,000 per annum and £1,800 as a special contribution to the fitting and preparation of a drill-

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ship towards the maintenance of a branch of the Eoyal Naval Eeserve of not less than 600 men. New Zealand : £40,000 per annum to an improved Australasian Squadron, and the establishment of a branch of the Eoyal Naval Eeserve. I wish to tender to the colonial Ministers the hearty acknowledgment of the B oar< l of Admiralty for the manner in which they have assisted them to arrive at the satisfactory result given above. As might be supposed, we have not always been able to see eye to eye on the questions discussed; but the interchange of views has been mutually frank, and governed on all sides by a desire to treat the defence of the Empire on a business footing, and to abandon the discussion of theories for the attainment of results immediately practicable. It is true that the Board of Admiralty have not in these Conferences achieved all the results for which they might previously have hoped; but, on the other hand, it has been a great pleasure to them to hear from the Prime Ministers of all the self-governing colonies a generous appreciation of the work of the navy. If the Parliaments of the above-named self-governing colonies accept and indorse these arrangements, a real step in advance will have been made in the organization of the naval forces of the Empire. In the first place, an increase in the number of modern men-of-war maintained in commission will have been promoted by the aid of British subjects in the dominions beyond the seas. In the second place, the conditions attached to the various agreements will show how keen is becoming the appreciation throughout the Empire of the peculiar characteristics of naval warfare, and of the fact that those local considerations which find their natural place in military organizations are inapplicable to naval organization. I would draw special attention to the improved composition and organization of the Australasian Squadron when the new agreement will have come into force, and to the fact that Cape Colony and Natal have made their offer unfettered by any conditions, a mark of confidence and of appreciation of the naval problem of which the Board of Admiralty are deeply sensible. Thirdly, 1 hail with much satisfaction the establishment of a branch of the Eoyal Naval Eeserve in the colonies. The circumstances of the population of Newfoundland are peculiar, and nowhere else, probably, within the Empire can so large a proportion of fishermen be found. A branch of the Eoyal Naval Eeserve has already been founded there, and I look forward confidently to its steady growth. In Australia and New Zealand, although naval brigades have for some time been in existence there, and did excellent service in the recent China war, the formation of a branch of the Eoyal Naval Eeserve is a new departure. The formation of a branch of the Eoyal Naval Eeserve is not the only, or indeed the chief, step in advance in connection with the personnel of the fleet, for it has been agreed that, if possible, one of the ships of the Australian Squadron in permanent commission shall be manned by Australians and New-Zealanders under officers of the Eoyal navy, and that ten cadetships in the Eoyal navy shall be given annually in Australia and New Zealand. I have accordingly great pleasure in recommending to His Majesty's Government that the offers of assistance which have been received should be accepted. Sir Wilfrid Laurier informed me that His Majesty's Government of the Dominion of Canada are contemplating the establishment of a local naval force in the waters of Canada, but that they were not able to make any offer of assistance analogous to those enumerated above. I have alluded to the fact that our interchange of views at the Conferences has been characterized by mutual frankness, and I desire to put on record the facts and arguments which I thought it my duty to set forth. In the first place, I pointed out that even after the colonial Parliaments had ungrudgingly increased the proportion of their assistance towards the naval defence of the Empire, as recommended by their Ministers, the taxpayers of the British Empire would, in respect of naval expenditure, still be in the following relative positions: —

For the year 1902-3 the navy estimates amounted to £31,423,000, after deducting appro-priations-in-aid other than contributions from the self-governing colonies. Of this sum the selfgoverning colonies would, on the basis of the new agreements, have paid £328,000. This table shows how large a proportion of the burden falls upon the taxpayer of the United Kingdom, and although it is true that by far the larger portion of the money which he provides is spent within the United Kingdom, yet it so happens that more of the money provided by the taxpayer of the United Kingdom is spent in the British dominions beyond the seas than the British dominions beyond the seas contribute to the maintenance of the British navy. Additional interest is lent to the fact by an analysis of the trade which the British navy has to protect. In the year 1900 the seaborne trade of the Empire may be roughly stated to have been worth between eleven

Population (White). aval Contribution per Caput per Annum. Jnited Kingdom lape Colony lommonwealth of Australia )ominion of Canada ... fatal rewfoundland tew Zealand 41,454,621 538,000 3,765,805 5,338,883 64,951 210,000 772,719 s. d. 15 2 1 10. 1 Of Nil. 10 9| 0 31 1 0+

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and twelve hundred millions sterling; but of this vast sum a proportion of certainly not less than onefourth was trade in which the taxpayer of the United Kingdom had no interest either as buyer or seller of the particular goods represented by these values. It was either intercolonial trade or trade between the British dominions beyond the seas and foreign countries. The taxpayer of the United Kingdom has therefore the privilege not only of taking upon himself the lion's share of the burden the interest in which is shared between himself and his fellow-subjects in the dominions beyond the seas, but also a not less share of the burden in respect of interests which are not his own, but exclusively those of his fellow-subjects beyond the seas. I expressed my hope that this simple statement of fact would help the colonial taxpayer to realise the extent of the advantage he reaps from the existence of one navy for the whole Empire. He is not only relieved thereby of a heavy burden of taxation in time of peace, but in time of war he knows that to him, if faced by any possible coalition, is furnished the concentrated strength of one navy under one command. In reply to an inquiry, I undertook to endeavour to form an estimate of the naval obligations which would be forced upon the British dominions beyond the seas if they were nations with a separate existence, and not, as now, partner nations of the British Empire, and it was suggested that the proper comparison would be between the Commonwealth of Australia and New Zealand or the Dominion of Canada and some State with a population of about the same size. I pointed out that if such a basis of comparison were chosen the annual naval expenditure of Holland is £1,400,000, and that of Argentina £920,000, not to mention a past capital expenditure of several millions which must have been incurred in the creation of the fleets and for the proper equipment of dockyards and naval bases. These countries were only taken because their populations roughly correspond in size with those of Australasia and Canada, and not because they are in other respects in any way comparable. Indeed, I submitted that this was not an adequate or satisfactory comparison. Each great group of dominions beyond the seas would, so it seemed to me, have to face the naval position in which it found itself, and the governing conditions of that position would be the political and geographical environment of the group. As a matter of fact, each of these groups would find itself within the orbit of a great naval Power. The Dominion of Canada would have to frame its naval policy with a view to the navy of the United States. The Commonwealth of Australia and New Zealand would be forced to remember that France in New Caledonia, and Germany in New Guinea, are near neighbours. Cape Colony and Natal would constantly find themselves reminded of the fact that France is their neighbour in the Indian Ocean, in Madagascar, and that the greater part of western South Africa is German. It is not easy in either of these cases to see how it could be possible to avoid the influence of those forces which have forced Japan to become a naval Power. The Naval Budget of Japan for the year 1901-2 was £3,700,000, and this sum included nothing for interest, sinking fund, or depreciation account in connection with former capital expenditure on stores, ships, dockyards, or naval bases. These are the facts and arguments which I felt it my duty to lay before the Premiers, and to which, whether agreeing or disagreeing, they have listened with that friendly courtesy which has made all our interviews so agreeable a recollection. I recapitulate them now because the danger to the Empire which I fear is that Canada, South Africa, and Australia, being in fact continents, should become too much continental and too little maritime in their aspirations and ideas. The British Empire owes its existence to the sea, and it can only continue to exist if all parts of it regard the sea as their material source of existence and strength. It is therefore desirable that our fellow - subjects in the dominions beyond the seas should appreciate the importance of naval questions. If they will undertake a larger share of the naval burden, well and good. But I regard it as of even more importance that 'they should cultivate the maritime spirit; that their populations should become maritime as ours are ; and that they should become convinced of the truth of the proposition that there is no possibility of the localisation of naval force, and that the problem of the British Empire is in no sense one of local defence. The sea is all one, and the British navy therefore must be all one; and its solitary task in war must be to seek out the ships of the enemy, wherever they are to be found, and destroy them. At whatever spot, in whatever sea, these ships are found and destroyed, there the whole Empire will be simultaneously defended in its territory, its trade, and its interests. If, on the contrary, the idea should unfortunately prevail that the problem is one of local defence, and that each part of the Empire can be content to have its allotment of ships for the purpose of the separate protection of an individual spot, the only possible result would be that an enemy who had discarded this heresy and combined his fleets will attack in detail and destroy those separated British squadrons which united could have defied defeat. 7th August, 1902. Selborne.

3—A. 7.

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APPENDIX.

Memorandum from the Prime Minister of Cape Colony and Natal to the Board of Admiralty. London, Bth July, 1902. The enormous preponderance of the Native population in the Colonies of the Cape and Natal renders it impossible for us to agree to any proposal involving the obligation to furnish a military contingent in the event of a war in which the Imperial Government may be involved in any other part of the Empire. Eecognising, however, as we do, the absolute necessity for the maintenance of an efficient navy if the Empire is to be held together, and regarding the navy as the first security for the preservation of the people of South Africa, and especially of those residing in the two coast colonies, we are prepared to submit to the Legislatures of our respective colonies Bills providing for contributions towards the cost of maintaining the Imperial navy. At present the Cape Colony contributes, under an Act of Parliament passed in 1898, the sum of £30,000 a year for that purpose. So soon as Parliament assembles, a Bill will be submitted raising that sum to £50,000. To the Legislature of Natal a Bill will be submitted providing for a yearly contribution of £35,000. At a later period, when a Confederation has been established in South Africa, the question of training men residing in the two coast colonies for service in the Imperial navy will be brought under the consideration of their respective Legislatures, who will, we believe, be prepared to entertain such a proposal most favourably. J. Gordon Sprigg. A. H. Hime. Letter from the Admiralty to the Prime Minister of Cape Colony. Sir,— Admiralty, 11th August, 1902. I am commanded by my Lords Commissioners of the Admiralty to inform you that they have laid before His Majesty's Government the paper signed by yourself and Sir Albert Hime, in which you recognise the absolute necessity for the maintenance of an efficient navy if the Empire is to be held together, and announce that you are prepared to submit to the Legislature of Cape Colony, as soon as it assembles, a Bill providing for an increase in the contribution towards the cost of maintaining His Majesty's navy from £30,000 a year to £50,000. His Majesty's Government accept with pleasure this spontaneous offer of assistance, and believe that with the united efforts of all His Majesty's subjects, both in the United Kingdom and in the British dominions beyond the seas, the British navy will be in the future, even more than it has been in the past, the protector of, and connecting-link between, the widely extended parts of His Majesty's dominions. I am to suggest to you that, with a view to setting forth the principles which should govern the development of His Majesty's navy, it would be very advantageous to insert, in the Preamble of the Bill which you propose to lay before the Parliament of Cape Colony, words recognising the importance of sea power:—" in the control which it gives over the sea communications, and the necessity of a single navy under one authority, by which alone concerted action can be assured." My Lords notice with satisfaction that you consider that, when a Confederation has been established in South Africa, the question of training men for service in His Majesty's navy will be brought before the Legislature, and that you believe such a proposal would be favourably entertained. To this my Lords attach much importance, as they fear that, unless the British continental dominions beyond the seas retain a personal touch with the British navy, British subjects living far inland may forget that the origin of the Empire depends on the sea, and that for its continued existence it is essential that in all its parts the maritime spirit should prevail. A copy of the letter which has been addressed to Sir Albert Hime on this subject is attached for information. I am, &c, The Eight Hon. Sir J. Gordon Sprigg, G.C.M.G. H. J. Vansittart Neale. Letter from the Admiralty to the Prime Minister of Natal. Sir,— Admiralty, 11th August, 1902. I am commanded by my Lords Commissioners of the Admiralty to inform you that they have laid before His Majesty's Government the paper signed by yourself and Sir J. Gordon Sprigg, in which you recognise the absolute necessity for the maintenance of an efficient navy if the Empire is to be held together, and announce that you are prepared to submit to the Legislature of Natal, as soon as it assembles, a Bill providing for a yearly contribution of £35,000 towards the cost of maintaining His Majesty's navy. His Majesty's Government accept with pleasure this spontaneous offer of assistance, and believe that with the united efforts of all His Majesty's subjects, both in the United Kingdom and in the British dominions beyond the seas, the British navy will be in the future, even more than it has been in the past, the protector of, and connecting-link between, the widely extended parts of His Majesty's dominions. I am to suggest to you that, with a view to setting forth the principles which should govern the development of His Majesty's navy, it would be very advantageous to insert, in the preamble of the Bill which you propose to lay before the Parliament of Natal, words recognising the importance of sea power:—" in the control which it gives over the sea communications, and

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the necessity of a single navy under one authority, by which alone concerted action can be assured." My Lords notice with satisfaction that you consider that, when a Confederation has been established in South Africa, the question of training men for service in His Majesty's navy will be brought before the Legislature, and that you believe such a proposal would be favourably entertained. To this my Lords attach much importance, as they fear that, unless the British continental dominions beyond the seas retain a personal touch with the British navy, British subjects living far inland may forget that the origin of the Empire depends on the sea, and that for its continued existence it is essential that in all its parts the maritime spirit should prevail. A copy of the letter which has been addressed to Sir Gordon Sprigg on this subject is attached for information. I am, &c, H. J. Vansittart Neale. Lieutenant-Colonel the Hon. Sir Albert H. Hime, K.C.M.G. Letter from the Prime Minister of Newfoundland to the First Lord of the Admiralty. Sir, — Hotel Cecil, London, W.C. Eeferring to my conversation with your Lordships, and subsequent interviews and correspondence with Eear-Admiral Custanee, I am now in a position to state that the Newfoundland Government will contribute towards the Newfoundland Eoyal Naval Eeserve the sum of £3,000 sterling annually for a period of ten years, provided the said force shall consist of not less than 600 men, the said annual payment to be proportionately reduced for each man less than that number. The colony will also pay over to His Majesty's Government the sum of £1,800 to defray the cost of " housing in " of H.M.S. " Calypso." In the matter of the erection of a battery referred to in my letter to Eear-Admiral Custanee, of date the Ist instant, it is to be understood that, while His Majesty's Government cannot at the present time agree to erect a battery in St. John's, the matter is to be regarded as depending upon the success of the present movement. This letter is to supersede all former correspondence and agreements. I have, &c, The Eight Hon. Lord Selborne, Admiralty. E. Bond. Letter from the Admiralty to the Prime Minister op Newfoundland. Sir,— Admiralty, August, 1902. I am commanded by my Lords Commissioners of the Admiralty to inform you that they have laid before His Majesty's Government your letter of the sth instant, addressed to the First Lord of the Admiralty, in which you state that the Newfoundland Government will contribute towards the branch of the Eoyal Naval Eeserve established in that colony the sum of £3,000 sterling annually for a period of ten years, provided the said force shall consist of not less than 600 men, and also that the Newfoundland Government will place in the hands of His Majesty's Government the sum of £1,800 to defray the cost of " housing in," &c, His Majesty's ship " Calypso." His Majesty's Government accept with pleasure these payments under the conditions specified in your letter, as an indication of the determination of the inhabitants of Newfoundland to share in the charge of maintaining His Majesty's naval forces. The Admiralty will consider the question of the erection of a drill battery at St. John's if further experience shows that it will add to the efficiency of the Naval Eeserve. I am to add that your suggestion that all former correspondence and agreements shall be considered as superseded is accepted. I am, &c, Tbe Hon. Sir E. Bond, K.C.M.G. H. J. Vansittart Neale. Sir,— Admiralty, S.W., 15th August, 1902. In transmitting the enclosed printed paper, I am commanded by my Lords Commissioners of the Admiralty to state that their Lordships will be glad to receive your formal concurrence in the " Draft Agreement between His Majesty's Government of the United Kingdom, the Commonwealth of Australia, and the Colony of New Zealand" [printed next page], the terms of which, as you are aware, have already been mutually accepted. I am, &c, G. H. Hoste, Pro. Sec. The Eight Hon. Sir Edmund Barton, G.C.M.G., Hotel Cecil, Strand, W.C. The Eight Hon. E. J. Seddon, Hotel Cecil, Strand, W.C. My Lord, — Hotel Cecil, London, W.C, 2nd September, 1902. I have the honour to acknowledge the receipt of Admiralty letter transmitting printed copy of the draft agreement between His Majesty's Government of the United Kingdom, Commonwealth of Australia, and the Colony of New Zealand, and in reply to inform you that I concur in the draft agreement, and, subject to confirmation by the Government, will in due course submit same for the approval of the New Zealand Parliament. I have to express regret that, owing to my absence from London during the past fortnight, this matter has been delayed. I have, &c, E. J. Seddon, Premier of New Zealand. The Eight Hon. the First Lord of the Admiralty, Whitehall, S.W.

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Sir, — Commonwealth of Australia, Prime Minister, 25th September, 1902. I have the honour to acknowledge the receipt of your letter of the 15th of August last, stating that their Lordships would be glad to receive my formal concurrence in the " Draft Agreement between His Majesty's Government of the United Kingdom, the Commonwealth of Australia, and the Colony of New Zealand," shown at page 7 [printed below] of the printed paper enclosed in your letter. The terms of the draft agreement were, as you correctly state, mutually accepted in London before the close of the late Conference at the Colonial Office, and therefore my written assent to them, subject to the approval of the Parliament of the Commonwealth, remains now to be formally given and is hereby given. I have, &c, Edmund Barton. The Secretary to the Lords Commissioners of the Admiralty. Draft Agreement between His Majesty's Governments of the United Kingdom, the Commonwealth of Australia, and the Colony of New Zealand. The Commissioners for executing the office of Lord High Admiral of the United Kingdom of Great Britain and Ireland, &c, and the Governments of the Commonwealth of Australia and of New Zealand, having recognised the importance of sea power in tbe control which it gives over-sea communications, the necessity of a single navy under one authority, by which alone concerted action can be assured, and tbe advantages which will be derived from developing the sea power of Australia and New Zealand, have resolved to conclude for this purpose an agreement as follows:— Article I. The naval force on the Australian Station shall consist of not less than the undermentioned sea-going ships of war, all of which shall be from time to time throughout the terms of this agreement of modern type, except those used as drill-ships: 1 armoured cruiser, first class ; 2 second-class cruisers ; 4 third-class cruisers ; 4 sloops; and of a Eoyal Naval Eeserve consisting of 25 officers and 700 seamen and stokers. Article 11. The base of this force shall be the ports of Australia and New Zealand, and their sphere of operations shall be the waters of the Australia, China, and East Indies Stations, as defined in the attached schedules, where the Admiralty believe they can most effectively act against hostile vessels which threaten the trade or interests of Australia and New Zealand. No change in this arrangement shall be made without the consent of the Governments of the Commonwealth and of New Zealand; and nothing in the agreement shall be taken to mean that the naval force herein named shall be the only force used in Australasian waters should the necessity arise for a larger force. Article 111. This force shall be under the control and orders of the Naval Commander-in-Chief for the time being appointed to command His Majesty's ships and vessels on the Australian Station. Article IV. Of the ships referred to in Article 1., one shall be kept in reserve, and three shall be only partly manned and shall be used as drill-ships for training the Eoyal Naval Eeserve; the remainder shall be kept in commission fully manned. Article V. The three vessels used as drill-ships and one other vessel shall be manned by Australians and New-Zealanders as far as procurable, paid at special rates, and enrolled in proportion to the relative population of the Commonwealth and New Zealand. If a sufficient proportion of men from either colony should not on the aforesaid basis be forthcoming a sufficient number of men to complete the complements of the ships may be enrolled from the other colony. They shall be officered by officers of the Eoyal navy supplemented by officers of the Eoyal Naval Eeserve. A rticle VI. In order to insure that the naval service shall include officers born in Australia and New Zealand, who will be able to rise to the highest posts in the Eoyal navy, the undermentioned nominations for naval cadetships will be given annually : Commonwealth of Australia, 8; New Zealand, 2. Article VII. The branches of the Eoyal Naval Eeserve established in Australia and New Zealand shall be called into actual service by His Majesty in Council, acting on the advice of his Governments of the Commonwealth of Australia and New Zealand respectively. The men forming the Eoyal Naval Eeserve shall be divided into two classes: (a) Those who have served for three years on board one of H.M. ships; (b) those who have not so served. These men shall be trained on ships specially provided for the purpose. The officers of this reserve force shall be included on the list of officers of the Eoyal Naval Eeserve.

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Article VIII. In consideration of the services aforementioned, the Commonwealth of Australia and New Zealand shall pay the Imperial Government five-twelfths and one-twelfth respectively of the total annual cost of maintaining the naval force on the Australian Station, provided that the total amount so paid shall in no case exceed £200,000 and £40,000 respectively in any one year. In reckoning the total annual cost a sum equal to 5 per cent, on the prime cost of the ships of which the naval force of the station is composed shall be included. Article IX. The Imperial Government recognise the advantages to be derived from making Australasia a base for coal and supplies for the squadrons in Eastern waters. Article X. 1. This agreement shall be considered to become actually binding between the Imperial Government and the Commonwealth of Australia and New Zealand so soon as the Colonial Legislatures shall have passed special appropriations for the terms hereinafter mentioned, to which Acts this agreement shall be attached as a First Schedule. 2. The agreement shall be for a period of ten years, and only terminate if and provided notice has been given two years previously —viz., at the end of the eighth year, or at the end of any subsequent year, and then two years after such date. Article XI. 1. The payments named in Article VIII. shall be considered as payments in advance, and shall first become due and payable six months after the colonial Legislature shall have passed the special appropriation referred to in Article X. 2. The period of ten years referred to in Article X. is to be calculated from the date on which the colonial Legislature passes the special appropriation referred to. 3. The payments under the existing agreement, and that agreement itself shall terminate on the date on which the payments under the new agreement commence. 4. The share of these payments due from each colony shall be paid annually in London by the High Commissioner of the Commonwealth and the Agent-General of New Zealand, and, pending the appointment of the first-named officer, by such person as tbe Government of the Commonwealth may nominate, to such account as the Lords Commissioners of the Admiralty may direct. Article XII. In time of peace one of the drill-ships referred to in Article IV. and one other cruiser shall be stationed in the waters of New Zealand and its dependencies, as their headquarters. Should, however, such emergency arise as may, in the opinion of the Naval Commander-in-Chief, render it necessary to remove either or both of such ships, he shall inform the Governor of the reasons for such temporary removal. SCHEDULE TO AGREEMENT. Limits of Australia Station. The Australia Station, as referred to in Article 11. of the foregoing agreement, is bounded— North. —On the north from the meridian of 95° east, by the parallel of the 10th degree of south-latitude, to 130° east longitude; thence northward on that meridian to the parallel of 2° north latitude; and thence on that parallel to the meridian of 136° east longitude ; thence north to 12° north latitude, and along that parallel to 160° west longitude; thence south to the Equator; thence east to the meridian of 149° 30' west longitude. West. —On the west by the meridian of 95° east longitude. South. —On the south by the Antarctic Circle. East. —On the east by the meridian of 149° 30' west longitude. Limits of the China Station. The China Station, as referred to in Article 11. of the foregoing agreement, is bounded— North. —On the north from the meridian of 95° of east longitude in 10° north latitude, along that parallel to the west coast of the Malay Peninsula; thence by the shores of Asia as far as the meridian of 180°. West. —On the west from the latitude of 10° north, by the meridian of 95° east longitude, to 10° of south latitude. South. —On the south from the meridian of 95° east longitude, by the parallel of 10° south latitude, to 130° east longitude; thence north to 2° north latitude, and along that parallel to 136° east longitude; thence north to 12° north latitude, and along that parallel to the meridian of 180°. East. —On the east by the meridian of 180° from 12° north latitude to the point where the meridian reaches the shores of Asia. Limits of East Indies Station. The East Indies Station, as referred to in Article 11. of the foregoing agreement, is bounded—■ North. —On the north by the southern shores of Asia, including the Persian Gulf, from an imaginary line drawn from Jebel Sejan on the African coast to Cape Babel Mandeb on the Arabian coast, to where the 10th parallel of north latitude touches the west coast of the Malay Peninsula.

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East. —On the east by the meridian of 95° east longitude between the parallels of 10° north and 26° south latitude. South. —On the south by the 10th parallel of north latitude between the coast of the Malay Peninsula and the 95th meridian of east longitude, and by the parallel of 26° south latitude between the 95th and 42nd meridians of east longitude. West. —On the west by the 42nd meridian of east longitude between the parallels of 26° and 10° south latitude, by the 43rd meridian between the parallel of 10° south and the Equator, and by the east coast of Africa between the Equator and the Jebel Sejan. From this it will be seen that a very considerable improvement has been arranged, subject to the approval of the Parliaments concerned, in the terms of the Australasian Naval Agreement, by which the effectiveness of the squadron to which it relates as part of the naval force of the Empire will be greatly increased, and the amount of the colonial contribution towards the maintenance of the squadron will be raised from £126,000 a year, at which it stands at present, to £240,000. At the same time the Premiers of Cape Colony and Natal have intimated their desire to increase their unconditional contributions to the navy from £30,000 and £12,000 to £50,000 and £35,000 respectively. Newfoundland also, where a branch of the Eoyal Naval Eeserve was established two years ago, the expense of which was borne entirely on Imperial funds, has now agreed to contribute a sum of £3,000 a year towards the charge on the understanding that the number of the reserve there is raised to and maintained at 600 men, and, further, to contribute a capital sum of £1,800 towards the "housing in" of the training-ship " Calypso " which is to be stationed there. If, as may confidently be expected, these arrangements are accepted by the Parliaments of the colonies concerned, a considerable forward step in the organization of the Empire for the protection and defence of the general interests will have been accomplished. Though the aggregate contributions from the colonies will under the new arrangements be practically doubled, they will still amount to little more than 1 per cent, of the charge for the navy borne by the taxpayers of the United Kingdom ; but the increase, and still more the proposals in the Australasian and Newfoundland agreements, which will add a considerable colonial element to the personnel of the fleet, are satisfactory as evidence that the self-governing colonies realise that the burden of defence is a common burden, and that they feel that the time has come when the unity of sentiment which now knits the Empire together should receive practical expression by their sharing, as far as their circumstances permit, in the task of providing for the defence of the common interests, of which, as the First Lord of the Admiralty pointed out, their proportion is steadily and continuously growing. MILITAEY DEFENCE. In regard to the question of military defence, the Conference did not reach any definite decision. The Parliament of New Zealand had, in 1900, passed an Act providing for the establishment in the colony of an Imperial Military Eeserve for service in certain cases of emergency outside the limits of the colony, and notice of the following motion had been given by Mr. Seddon :— " That it is desirable to have an Imperial Eeserve Force formed in each of His Majesty's dominions over the seas for service in case of emergency outside the dominion or colony in which such reserve is formed. The limits within which such Eeserve Force may be employed outside the colony wherein it is raised to be defined by the Imperial and colonial Governments at the time such reserve is formed, and to be in accordance with any law in force for the time being respecting the same. The cost of maintaining and equipping such Imperial Eeserve Force to be defrayed in such proportion and manner as may be agreed upon between the Imperial and colonial Governments." The question had also been considered by the Colonial Defence Committee, and the report of that body, together with the papers by Major-General French and Major-General Hutton, dealing specially with the organization of the forces of the Commonwealth, were communicated to the members of the Conference. Copies of these papers are appended (Appendix III.; Appendix V. (2); Appendix V. (3)). The discussion of the question was opened by the Secretary of State for War in the following speech, in which he indicated the views of his military advisers and himself as to the form in which the self-governing colonies might assist in the military defence of the Empire : — The Secretary of State for War : Mr. Chamberlain and Gentlemen, —On the last occasion when I had the pleasure of attending here, Lord Selborne opened the Conference on the question of Imperial defence from the standpoint of the navy, and we have before us, with regard to the army, a notice of motion formulated by the Government of New Zealand to the effect " That it is desirable to have an Imperial Eeserve Force formed in each of His Majesty's dominions over the seas for service in case of emergency outside the dominion or colony in which such reserve is formed. The limits within which such reserve force may be employed outside the colony wherein it is raised, to be defined by the Imperial and colonial Governments at the time such reserve is formed, and to be in accordance with any law in force for the time being respecting the same. The cost of maintaining and equipping such Imperial Eeserve Force to be defrayed in such proportion and manner as may be agreed upon between the Imperial and colonial Governments." Although I heartily concur with the terms of the motion generally, I may perhaps be allowed to say that what I may be able to say to-day is not in any way based on that resolution. The question of our Imperial land forces is one which has not been brought forward either by the momentary impetus of the late war, or by anything but a desire for a settled policy in this respect;

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and I would venture to point out that our whole progress in this country for the last twenty years has been to some such end as that which we are now asking you to put your seal upon. National defence had been allowed to go very much backward during the "seventies." During the " eighties," sir, very considerable progress was made, especially after Lord Eandolph Churchill's resignation as Chancellor of the Exchequer, which was based upon and which formed a subject of a trial of strength as to whether our coaling-stations for the navy and national defences should be maintained. Since then attempts have been made from time to time to estimate what our land forces might be called upon to undertake. Those attempts have become more necessary year by year. It is practically impossible to exclude from our minds the necessities not of offensive but of defensive action for the maintenance of our colonies and dependencies all over the world, and the Government have, within the last two years, definitely stated, I think almost for the first time, how they adjust our land forces at home, and what proportion they hold in readiness for the protection of our interests in other parts of the globe. Perhaps I might recapitulate the views which I put before the House of Commons, now eighteen months ago, on behalf of the Government, and which after long discussions were accepted, and have been generally agreed to by Parliament. We are prepared—and our organization enables us in the future—to send 120,000 regular troops abroad to any part of the British Empire which may be threatened. We keep up a home field army of another 120,000 men; we keep 190,000 men for our garrisons; we have a large number — somewhere between 100,000 and 200,000 — employed in various positions for the defence of London and for strategic positions which might be threatened in case of invasion. But, large as these preparations may sound, they are certainly not deemed too large by our military advisers, in view of the possibility of our at any time losing the command of the sea, and I would venture to remind the Conference that what Great Britain does off her own bat towards defence of colonies and dependencies is not limited by her power to send 120,000 men to any threatened position in case of emergency. We have close upon 80,000 British troops in India. We have always some 30,000 in the colonial garrisons; and at present—and probably for some long time to come —we must, in view of South Africa, look to keeping a larger number than that. Therefore, we have, either abroad at this moment or liable to go abroad on any emergency, close upon a quarter of a million of men. And I would point out that this is not a force kept for ambitious schemes or offensive operations, or for an attempt to involve ourselves in the great quarrels of our neighbours in Europe. We have only got to look to the illustrations of the late war to see that in fixing 120,000 men as our contingent, we are rather under than over the mark of what we might be called upon to send, having in view that we have had to send double the number, with your assistance, for the defence of two of our colonies. I recognise that in bringing these subjects before you I am bound to show that the Mothercountry is doing her part. Ido not think that anybody will contend that a nation which keeps 110,000 or 120,000 men permanently abroad under a system of voluntary enlistment, and is prepared to send the same number in the case of emergency, is not' doing her share in protecting her colonies and dependencies, which are relying upon her assistance. On the other hand, it is held— speaking in this room, by our military advisers it is strongly held—that circumstances may occur in which it is most desirable that we should have a call on further troops. Of course, we should have a certain number at home, which, if the sea is safeguarded, we should, as we did in the case of South Africa, send out; but the whole secret of success in war is time, and we can never count on having so much time as we have had in the late war. We should never count —either in respect to policy or as to time —on having an enemy who would enable us to make up during the war the deficiencies which we found at the beginning. I should like to speak, if I may, quite frankly to the Conference on this subject. In the Boers we had an armed enemy —not an army—shrewd and brave, and provided with good weapons ; but they neglected, at the beginning of the war, obvious opportunities—obvious and many opportunities. lam not a tactician, but I have studied the opinions of those who have written and who have given me their advice. I might point out that there were incidents, earlier in the war, there were occasions when a powerful and determined enemy, properly organized, could have taken advantage of our early reverses, and could have moved with great effect upon our communications. That was not done because the forces were not an organized army. Again, in individual battles there were many opportunities of which a determined leader who had an organized force at his disposal, would have taken advantage to break our line—very often a long-extended one —and would have put our troops to a much more severe test than even they were put to. I only mention that fact for this reason, that we have to consider what would be the effect if we found ourselves pitted against European troops. We should have both these contingencies, which were neglected by the Boers, to look to. My object in mentioning this is to remind you that we had largely to rely—both in our own and in our colonial levies —on relatively untrained troops. I admit to the full that our levies—that is to say, our yeomanry and other hastily levied troops—differed extremely in their composition and in their military quality. They all improved enormously after some months, but no general commanding British troops would have been willing, in the condition in which many of them went out—nor would it have been fair —to pit them against European troops ; and the same, in a lesser degree, holds good as regards the colonial force sent to our support. They differed, and they were bound to differ exceedingly, in their military quality, especially at the beginning, and on first landing; and it is not disrespectful to them to say that, with the training which they had_ received before they landed, there was a considerable number of those troops which no general would have had a right to pit against European troops without further training, and it is exceedingly important to us in laying down our plans of action for the future to know to what extent we can depend in an emergency upon colonial support. Of course, I realise in regard to all these questions that we should not ask for—that we should go too far if we asked for any general promise of support in an

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emergency which has not arisen; but what I do trust very strongly is this : that in case of an emergency, and in case of different colonies being willing to come to the support of tbe Mothercountry in such emergency, they should be in a position to do so with a body of troops, however moderate in number, which could be put in line with our own regular troops against a European Power. lam not, of course, speaking of action on the Continent of Europe, but it will not be necessary for any of us to go far to conceive cases in which in support of our colonies it might be necessary to send a large British force, and in some cases in quarrels in which Great Britain's interest would be considerably less than that of the colony affected. Therefore lam not asking that this should be regarded simply as a donative on the part of the colonies out of loyalty. I ask it rather on the ground of reciprocity, and I ask it also because, if you take some parts of the world in which our interests might be threatened, it must be perfectly obvious that it would not be in the power of the Mother-country to perform her part of the business effectively without some support. Take, for instance, the case of China. We have recently come to an agreement with Japam — an agreement which you will recollect is not one for offensive action, since it only comes into force in the case of aggressive action by other Powers. Obviously in any plan of campaign which might be found necessary to protect our trade with China against encroachment and against aggression we should be bound, and we should wish, to give Japan, our ally, every support in our power. It is equally obvious that our interests would be strongly threatened in other parts of the globe at the same time. A campaign between two great Powers is not fought out solely on the spot at which the quarrel has arisen. In the case of any trouble which threatened our Indian Empire we are bound to send large reinforcements from here. In the ease of war which involved European Powers our striking effect would necessarily be exercised on some of their dependencies. That is what Great Britain ought to be prepared to do ; but by propinquity and also from other causes nothing could assist us more, supposing that quarrel forced upon us by others also obtained for us the support of the different colonial Governments, than that we should be able to count on being able to support our ally in China with a small body—but, at the same time, a well-organized body— of colonial force from those colonies which are nearest and which are most conveniently situated for supporting us in China. Well, now, what is the present position ? We have had a memorandum which I think has been probably read by all the authorities who are present, and which shows that we have nominally of all ranks a very large permanent force in Australia, something like 27,000 men ; in Canada, 38,000; in New Zealand, 17,000; and making up with South Africa, say, probably something like 100,000 men. Well, what is the military value of the force ? That is the question we have to put to ourselves; what is its military value for the defence of the colonies themselves ? and what is its military value for assistance to the Empire at large, to the extent to which it is asked to contribute ? Well, I hope I shall not be accused, if lam frank, of in any way disparaging our colonial troops. I began by saying that all, and more than all, that may be said as to their diversity may be said as to the diversity of the Imperial forces outside the regular army, but the diversity is exactly what my military advisers are engaged in reducing to the best of their ability, so that we may know exactly what we have to depend upon. Take the case, first of all, of Canada : Canada has nearly forty thousand men. We know that in no part of the Empire has better fighting material been found in the recent war than among the Canadians; but I see from the last annual report from the General Officer commanding the Canadian Militia —a report which was referred to in high terms in a recent debate on the militia in the Canadian Parliament —that the city corps have absolutely no training whatever in the field duties of a soldier, and that the rural corps " will never be made even fairly fit to take the field with the limited period of annual training that they receive under existing conditions." In the urban corps it is further stated to be impossible at present to give anything beyond theoretical instruction in the more important duties of a soldier, such as scouting, outpost-work, entrenchment, and tactical exercises. As regards the cavalry, the general officer regretted his inability to report that as cavalry they can be considered to be in any instance more than barely efficient. Beyond that, we know that Canada has at present no trained staff, or a system of training of staff officers ; and very recently a rifle has been adopted in Canada which, although carrying the same cartridge as our British rifle, is of a different pattern, which in itself, we think, is a little unfortunate, as breaking the uniformity and the interchangeability from the one to the other in case troops are employed together. Anybody who reads the report will see that, however fine might be the patriotic ardour and keenness of Canada at a given moment, troops hastily improvised from such material can only be placed by a general against trained troops with very considerable caution. Well, then again, in regard to Australia, there was a Military Committee of Inquiry which was assembled last year by the Commonwealth Government to report on the organization and the state of instruction of the guards of the various Australian States. Those reports point out much that I dare say might have been said with equal truth of our organization here no more than fifteen or twenty years ago, but I hope we have progressed here. The troops vary very much in quality, and are deficient as regards the departmental corps which are necessary to accompany them in the field — Army Service Corps, and Ordnance and Army Medical Departments. In some States there are none. Victoria has only a reserve of seventeen rounds of small-arms ammunition per rifle. Western Australia only twenty-eight rounds reserve. And, again, there has not been any military administrative staff to deal with supply or other arrangements, and only in one State is there periodical inspection of ammunition and warlike stores. The engineer units do not receive a continuous annual training, and, like the great variety of armaments and ammunition, anybody who reads those reports will see that, however magnificent the material, however loyal and patriotic the feeling, you can only treat contingents which are got together on the spur of the moment and hastily improvised, as a moral force, a moral support to the Empire

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at a critical moment, but not one on which the Empire would be justified in relying in any way to the exclusion of its own regular troops; and my point is that eases must and will arise in which we shall have to ask, in which we shall require a larger force than we have of our own, and in which the colonies who send it us on the ground that they think us worthy of support in a particular emergency should be prepared to send us reliable forces. Now, your time is of value, and I do not want to enlarge on the many other features which are put before me by my military advisers on this subject, but what I would ask is this : that out of this very large number of men who are only trained in some degree in the colonies, we must look, even if it was for only one in four to be specially trained, and to be held in readiness for such an emergency. I propose that those men should be trained with a liability to oversea service, that they should realise that they are a part of the Army Eeserve of the Imperial Force, that their services are absolutely pledged in the event of the Government to which they belong proffering assistance to the Imperial forces in the emergency. I would ask that they should receive such training as might be agreed upon between our military authorities and the Government concerned, and that they should be fully organized and fully equipped with a view to acting together and drilling together in the battalions or regiments with which they would take the field. Ido not want to go into the details of the question, because I think perhaps it is a question where we want first to have the principle decided. Ido not want to go into the questions of what their status would be with regard to other corps ; whether there should be any attachment to the regiments at home; whether there should be any exchange of units which has often been talked about, and was talked about at this Conference in 1897 ; whether the officers who are to accept service in this particular force should have any claim on Imperial commissions. All those, I think, are questions which we must take up and deal with; but, of course, there is the great question of expenditure. I would point out that this is not a large financial question. The number of men asked for is so comparatively small that it is unlikely that there would be a difficulty in getting men to pledge themselves, and the reserve pay which we give after all only amounts to £9 per man per annum. That reserve pay, over a force of 20,000 men, would only amount to £180,000 a year over the whole of the colonies, and I am by no means prepared to say, in looking to the last paragraph of Mr. Seddon's motion, that it would not be a fair thing to ask the Imperial Government to assist in that respect in case they really had a call on those troops. Of course, if these troops are entirely under the control of the Colonial Government, and if their colony says, which it very possibly would, " We will not pledge ourselves to send you any men until we know the emergency and until we have the assent of our Parliament for agreeing to take part in that particular emergency," it would probably be held that so long as the Colonial Government kept the control as to the employment of the troops, they should pay them. For ourselves, if it is held that any troops are part of our recognised Army Eeserve, I think it would not be unreasonable for the Imperial Exchequer to bear some portion of the charge. I will not develop the question further ; but I would point out that when I have spoken of £180,000 divided between the whole of the colonies, 1 am speaking of a relatively small figure compared to that which has been recently added to our estimates. On a most careful review by the Cabinet of the necessities of the case within two years —the years 1900 and 1901 —we have added no less than £9,000,000 sterling to the peace estimates for the army, and therefore the expenditure which I suggest may possibly not be grudged by the colonies, though I think it may be met by retrenchment in some other quarters. In respect of figures it would only represent an expenditure in the whole of the colonies of one-fiftieth of the sum which, in two years, the Imperial Government has had to take upon its shoulders. I would only urge before I sit down that these proposals are dictated not in the least by any idea of entering into an ambitious competition with other nations as to the extent of our land armaments ; but up to now Great Britain has always been the last in the field. We cannot afford to be the last in the field. If we are forced into defensive action for any of our dependencies, we are bound to be able to strike as quickly, or quicker, than any other Powers. That is the object of the whole of our present organization at the War Office, which has advanced most rapidly within the last two or three years ; and I sincerely trust that the colonial Governments may see their way to giving us, in this particular form, the support which they have given us in so unstinted a manner under the circumstances of the late war. The discussion revealed considerable difference of opinion amongst the members. While the representatives of Cape Colony and Natal were disposed to fall in with the policy suggested by Mr. Seddon and the Secretary of State for War—of having a special body of troops ear-marked for Imperial service—the representatives of Canada and Australia were of opinion that the best course to pursue was to endeavour to raise the standard of training for the general body of their forces, to organize the departmental services and equipment required for the mobilisation of a field force, leaving it to the colony, when the need arose, to determine how and to what extent it should render assistance. The Imperial sentiment in the colonies was steadily growing, and their action in the late war left no room for doubt that such assistance would be given readily and effectively and to the utmost of their ability in any future emergency. To establish a special force, set apart for general Imperial service, and practically under the absolute control of the Imperial Government, was objectionable in principle as derogating from the powers of self-government enjoyed by them, and would be calculated to impede the general improvement in training and organization of their defence forces, and, consequently, their ability to render effective help, if it should be required. In the result it was decided that, if His Majesty's Government on consideration should think it desirable to take action on the suggestion of the Secretary of State for War in the case of those colonies which were disposed to fall in with it, it would be best to do so through the usual channel of official correspondence. The views of the Canadian Ministers on the general question of defence were specially set forth in the annexed memorandum (Appendix VI.) 4—A. 7.

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AEMY AND NAVY SUPPLY CONTEACTS. On the question of army and navy supply contracts raised by the Government of the Commonwealth, the correspondence which had passed with the Admiralty and War Office, showing the principles which governed the action of these Departments in the matter, was communicated to the Conference, and the Secretary of State for War and the Financial Secretary of the Navy attended and took part in the discussion of the subject. The following resolution was unanimously adopted: —• " That in all Government contracts, whether in the case of the Colonial or the Imperial Governments, it is desirable that as far as practicable the products of the Empire should be preferred to the products of foreign countries. With a view to promoting this result, it is suggested that where such contracts cannot be filled in the country in which the supplies are required, the fullest practicable notice of the requirements and of the conditions of tender should be given both in the colonies and the United Kingdom, and that this notice should be communicated through official channels as well as through the Press." COMMISSIONS IN THE NAVY AND AEMY. The subject of commissions in the army and navy for young men from the colonies was also discussed at the instance of the Government of New Zealand. So far as the navy is concerned, the matter has been dealt with in the special agreements with Australia and New Zealand and the Cape and Natal. Under these arrangements eight cadetships in the navy will be given annually to the Commonwealth of Australia, two each to New Zealand and Cape Colony, and one to Natal, an arrangement which will, it is hoped, still further develop, in the case of these colonies, their practical interest in and association with the work of the navy. With regard to the army, the Secretary of State for War stated that he would regard with favour the possibility of doing something in the direction indicated by the resolution, which was passed unanimously in the following terms: — " That the Prime Ministers of the self-governing colonies suggest that the question of the allotment of the naval and military cadets to the dominions beyond the seas be taken into consideration by the naval and military authorities, with a view to increasing the number of commissions to be offered; that, consistent with insuring suitable candidates, as far as practicable, greater facilities than now obtain should be given to enable young colonists to enter the navy and the army." UNIFOEMITY IN PATTEENS OF WEAPONS. The desirability of uniformity in the patterns of weapons employed by the various military forces of the Empire was brought forward in the opening statement of the Secretary of State for War. There was general agreement on this subject, but no formal resolution was passed. POLITICAL RELATIONS. In regard to the political relations of the Mother-country with the colonies, a motion was presented on behalf of the Government of New Zealand:— " That it would be to the advantage of the Empire if triennial Conferences were held at which questions affecting the political and commercial relations of the Mother-country and His Majesty's dominions over the seas could be discussed and considered, as between the Secretary of State for the Colonies and the Premiers of the self-governing colonies. In case of any emergency arising, upon which a special Conference may have been deemed necessary, the next ordinary Conference to be held not sooner than three years thereafter." The previous Conference, in 1897, had passed a resolution that— " The Premiers are of opinion that it would be desirable to hold periodical Conferences of representatives of the colonies and Great Britain for the discussion of matters of common interest." It was the general opinion that it was desirable to take a step in advance of that resolution, and, while leaving due latitude for any political exigencies which might render it difficult for the Prime Ministers to leave their colonies at a date fixed in advance, at tbe same time to indicate that the Conferences should not wait for some special object, but should take place as a rule at fixed periods, unless there is some reason to the contrary. This view was embodied in the resolution unanimously adopted : — " That it would be to the advantage of the Empire if Conferences were held, as far as practicable, at intervals not exceeding four years, at which questions of common interest affecting the relations of the Mother-country and His Majesty's Dominions over the seas could be discussed and considered, as between the Secretary of State for the Colonies and the Prime Ministers of the selfgoverning colonies. The Secretary of State for the Colonies is requested to arrange for such Conferences, after communication with the Prime Ministers of the respective colonies. In case of any emergency arising upon which a special Conference may have been deemed necessary, the next ordinary Conference to be held not sooner than three years thereafter." COMMUNICATION WITH COLONIES PEIOE TO CONCLUDING TREATIES. The only other matters affecting political relations before the Conference were the questions raised by the Government of the Commonwealth of communicating with the colonies with regard to the terms of treaties before they are concluded, and of an Imperial Court of Appeal. In regard to the former, it was explained that, in regard to treaties of commerce and navigation, which appeared to be more especially contemplated by the Commonwealth Government, every

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effort was already made to carry out the policy indicated, and that where a colony or colonies were specially concerned it was the custom to invite them to be specially represented in the negotiations, and the following resolution, which was adopted by the Conference, gives formal expression to the practice which has been followed in recent years: — " That, so far as may be consistent with the confidential negotiation of treaties with foreign Powers, the views of the colonies affected should be obtained, in order that they may be in a better position to give adhesion to such treaties." IMPEEIAL COUET OF APPEAL. The subject of an Imperial Court of Appeal was brought up by Sir E. Barton, with the view of ascertaining how far the other Prime Ministers were satisfied with the results of the special Conference on the question held in 1901, and on finding that there was general acquiescence in that result he did not pursue the matter. COMMEECIAL RELATIONS. Whilst the informal discussions on the subject of defence were proceeding, the Conference took up the consideration of the various matters grouped in the list of subjects proposed for discussion under the head of " Commercial Eelations." In regard to this matter the policy of His Majesty's Government was declared in the speech of the Secretary of State at the Conference in 1897, and repeated in his opening statement already quoted. They are satisfied that a system of free-trade within the Empire, if it could be attained, would lead to the rapid and profitable exploitation of its boundless natural resources, and at the same time promote the natural and healthy growth and expansion of its manufacturing industries. It would change the various parts from a series of commercial units to an organic whole, the strength and solidarity of which would grow in proportion with its commercial and industrial development, and would lead inevitably to that closer political union which is so generally desired. At the last Conference, in 1897, the Prime Ministers passed two resolutions on this subject, the first urging the early denunciation of any treaties which hampered the commercial relations between Great Britain and the colonies, and the second undertaking to confer with their colleagues with the view of seeing whether an improvement of the trade relations between the Mother-coun-try and the colonies could properly be secured by a preference given by the colonies to the products of the United Kingdom. Following on these resolutions His Majesty's Government at once denounced the treaties with Germany and Belgium ; and the Dominion of Canada, which had given a tariff preference of 12J per cent.—to be increased to 25 per cent, in 1898—to the products of the United Kingdom, offering a similar reduction to the products of any country where the Customs tariff on Canadian produce was as favourable as the Canadian tariff so reduced was to the products of such country, on the termination of the treaties confined this preference to the products and manufactures of the United Kingdom and certain British colonies. The preference was in 1900 increased to 33J per cent, of the duty, and its results so far on the trade between the United Kingdom and Canada are fully discussed in the memoranda by the Board of Trade and the Dominion Minister of Customs which were laid before the Conference and copies of which are annexed (Appendices VIII. and IX.). Notice of a motion on this subject had been given on behalf of the Government of New Zealand to the following effect: — " That it is essential to the well-being of the Mother-country and His Majesty's dominions beyond the seas that, in such dominions where the same do not now exist, preferential tariffs by way of rebate of duties on British-manufactured goods carried in British-owned ships should be granted, and that in the Mother-country rebate of duty on colonial products now taxable should be conceded." The discussion revealed a very strong feeling amongst the Prime Ministers in favour of making some definite advance towards establishing closer trade relations between the Mother-country and the colonies. But the circumstances in the different colonies differed so widely that it was apparent that no arrangement applicable to all could be devised, and it was resolved accordingly that the several Prime Ministers should meet the President of the Board of Trade privately, with the view of considering such separate arrangements as would best meet the varying circumstances of the several colonies, and that when the result of these meetings was reported, the Conference should proceed to discuss the terms of a general resolution, embodying the principle of the arrangements arrived at. The result of the informal meetings with the President of the Board of Trade are set forth in the following memorandum : — Memorandum by the President of the Board of Trade. As a result of the communications which have taken place, it is understood that the representatives of the colonies hereinafter mentioned are prepared to recommend to their respective Parliaments preferential treatment of British goods on the following lines : —■ Canada : The existing preference of per cent., and an additional preference on lists of selected articles — (a) by further reducing the duties in favour of the United Kingdom; (b) by raising the duties against foreign imports; (c) by imposing duties on certain foreign imports now on the free list. Australia: Preferential treatment not yet defined as to nature or extent. New Zealand : A general preference by 10 per cent, all-round reduction of the present duty on British-manufactured goods, or an equivalent in respect of lists of selected articles on

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the lines proposed by Canada, namely : (a) By further reducing the duties in favour of the United Kingdom ; (b) by raising the duties against foreign imports; (c) by imposing duties on certain foreign imports now on the free list. The Cape and Natal: A preference of 25 per cent, or its equivalent on dutiable goods other than specially rated articles, to be given by increasing the duties on foreign imports. The general resolution, that was finally adopted as covering the principle underlying the several proposals comprised in Mr. Balfour's memorandum, was as follows : — " 1. That this Conference recognises that the principle of preferential trade between the United Kingdom and His Majesty's dominions beyond the seas would stimulate and facilitate mutual commercial intercourse, and would, by promoting the development of the resources and industries of the several parts, strengthen the Empire. " 2. That this Conference recognises that in the present circumstances of the colonies it is not practicable to adopt a general system of free-trade as between the Mother-country and the British dominions beyond the seas. " 3. That with a view, however, to promoting the increase of trade within the Empire, it is desirable that those colonies which have not already adopted such a policy should, as far as their circumstances permit, give substantial preferential treatment to the products and manufactures of the United Kingdom. " 4. That the Prime Ministers of the colonies respectfully urge on His Majesty's Government the expediency of granting in the United Kingdom preferential treatment to the products and manufactures of the colonies, either by exemption from, or reduction of, duties now or hereafter imposed. " 5. That the Prime Ministers present at the Conference undertake to submit to their respective Governments, at the earliest opportunity, the principle of the resolution, and to request them to take such measures as may be necessary to give effect to it." The Canadian Ministers handed in the following memorandum to explain their attitude on this question : — Memorandum by Canadian Ministers. This subject has frequently engaged the attention of the Conference. At an early stage Mr. Chamberlain suggested that the question could most conveniently be considered by the representatives of each colony placing themselves in communication with the President of the Board of Trade, Mr. Gerald Balfour, and the officials of that Department. Accordingly the Canadian Ministers had several protracted interviews with these gentlemen, and discussed the whole subject very fully. Opportunity was also taken to present the Canadian view to Mr. Chamberlain. Now that the Conference is drawing to a close it is desirable that the course of the discussion, and the conclusions reached by the Canadian Ministers, should be outlined and placed on record. From the beginning of the proceedings the Canadian Ministers have claimed that, in consideration of the substantial preference given by Canada for some years to the products of the Mothercountry, Canadian food-products should be exempted in the United Kingdom from the duties recently imposed. Eepresentations to this effect previously made through the High Commissioner for Canada were supplemented by the Ministers, both in writing and in the personal interviews with the Imperial Ministers. Mr. Chamberlain, on behalf of the Imperial Government, was unable to agree to the proposals of the Canadian Ministers. He represented that the Imperial Government, while highly appreciating the good feeling manifested by Canada in the granting of preferential treatment, did not think the material results to the trade of the United Kingdom were as great as the Canadian Ministers claimed. He further said that the change desired by Canada would be an important departure from the established fiscal policy of the kingdom, and that, if the proposals could be entertained at all, as to which he was not prepared to commit himself, it would be necessary for Canada to offer some material tariff concessions beyond those which she had already voluntarily given. t The Canadian Ministers, therefore, submitted a memorandum on the subject of the advantages already received by Great Britain from the Canadian preferential tariff, with a view to showing that these were of much value, and entitled to weight in the consideration of the whole subject. While urging that the benefits of the preference were such as to entitle Canada to the desired exemption from the duties on food-products in the United Kingdom, the Canadian Ministers stated that within certain limitations they were prepared to consider the request of Mr. Chamberlain for further concessions in return for the desired preference in the markets of the United Kingdom. While it was not deemed necessary to enter into questions as to the wisdom or unwisdom of the policy adopted by all Governments in Canada, of raising the revenues chiefly from Customs duties, the Canadian Ministers pointed out that under that policy large industries had grown up which had to be considered in connection with the proposed tariff changes. Large reductions of duties had been made in recent years, especially on British imports. It was feared that in some lines of importance further reductions might create a disturbance of trade which would not be conducive to the welfare of the country. But the Canadian Ministers pointed out that the Canadian tariff was by no means prohibitive, that large quantities of goods were imported, and that a great proportion of these came from foreign countries. In any lines in which it appeared that the goods would be manufactured in Great Britain, it might be possible to so readjust some duties as to give an additional advantage to the British manufacturer, and thus turn over to him a volume of trade which at present is held by the manufacturers of foreign countries.

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The Canadian Ministers stated that if they could be assured that the Imperial Government would accept the principle of preferential trade generally, and particularly grant to the foodproducts of Canada in the United Kingdom exemption from duties now levied, or hereafter imposed, they, the Canadian Ministers, would be prepared to go further into the subject, and endeavour to give to the British manufacturer some increased advantage over his foreign competitors in the markets of Canada. Meanwhile the Canadian Ministers determined to present to the Conference a resolution affirming the principle of preferential trade, and the desirability of its adoption by the colonies generally, and also expressing the opinion of the Prime Ministers of the colonies that His Majesty's Government should reciprocate by granting preferential terms to the products of the colonies in the markets of the Mother-country. The Canadian Ministers desired to have it understood that they took this course with the strong hope and expectation that the principle of preferential trade would be more widely accepted by the colonies, and that the Mother-country would at an early day apply the same principle by exempting the products of the colonies from Customs duties. If, after using every effort to bring about such a readjustment of the fiscal policy of the Empire, the Canadian Government should find that the principle of preferential trade is not acceptable to the colonies generally or the Mother-country, then Canada should be free to take such action as might be deemed necessary in the presence of such conditions. London, 11th August, 1902. It will be observed that the resolution is wider in its scope than that submitted to the Conference on behalf of the Government of New Zealand, which proposed to confine preferential-tariff treatment to goods carried in British ships. It was considered that this aspect of the question could best be considered in connection with the question raised by the other resolutions suggested by the Government of New Zealand in regard to shipping subsidies, and to the operation of the laws restricting the coasting trade, which are enforced by some nations. COASTING TEADE. The resolution on this question proposed by the Government of New Zealand was as follows: — " That, in view of the application of the coasting laws of the United States, and of other nations, the time has arrived for negotiations to be opened with a view to removal or modification of restrictions on British trade, failing which the Imperial Government should take steps to protect the trade of the Empire by passing a law declaring that the colonies and dependencies shall come within similar coasting laws." ■ The matter was fully considered by the Conference, especially in regard to its bearing on our treaties of commerce and navigation with certain foreign countries, as to which information was furnished by the President of the Board of Trade, and it appeared that the matter was one for further inquiry and consideration rather than immediate action. The decision of the Conference was expressed in the following resolution : — " That it is desirable that the attention of the Governments of the colonies and the United Kingdom should be called to the present state of the navigation laws in the Empire and in other countries, and to the advisability of refusing the privileges of coastwise trade, including trade between the Mother-country and its colonies and possessions, and between one colony or possession and another, to countries in which the corresponding trade is confined to ships of their own nationality, and also to the laws affecting shipping, with a view of seeing whether any other steps should be taken to promote Imperial trade in British vessels." MAIL-SEEVICES AND SHIPPING SUBSIDIES. The resolution proposed by the Government of New Zealand in regard to the mail-services between Australia, New Zealand, Canada, and Great Britain was as follows :— " That it would be an advantage to the Empire to have subsidised mail-services established as between Australia, New Zealand, Canada, and Great Britain. The steamers carrying such mails to be British-owned, and such steamers to be of such a class, and so fitted, that in time of war they may be armed and used as cruisers." It gave rise to an interesting discussion as to the effects on British trade and shipping of the subsidies granted to various foreign shipping firms by their respective Governments, and as to the grant of preferential rates of freight by British lines to foreign goods. The result of the discussion was that the following general resolution was adopted : — " That it is desirable that, in view of the great extension of foreign subsidies to shipping, the position of the mail-services between different parts of the Empire should be reviewed, by the respective Governments. In all new contracts provisions should be inserted to prevent excessive freight charges or any preference in favour of foreigners, and to insure that such of the steamers as may be suitable shall be at the service of His Majesty's Government in war-time as cruisers or transports. LOSS OF MOST-FAVOUEED-NATION TEEATMENT. In connection with the discussion of the question of preferential trade, the Conference also considered the point raised by the Commonwealth Government as to the possibility of the colonies losing most-favoured-nation treatment in foreign countries in the event of their giving a tariff preference to British goods. As, however, the exports from the colonies to foreign countries are almost exclusively articles of food or raw materials for various industries, the possibility of dis-

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crimination against them in foreign markets was not regarded as serious, and as the exports from foreign countries to the colonies are mainly manufactured articles it was recognised that if such discrimination did take place tbe colonies had an effective remedy in their own hands. MUTUAL PEOTECTION OF PATENTS. The Conference also discussed the subjects of the mutual protection of patents, and the purchase of ocean cables which had been suggested by the Government of the Commonwealth. In regard to the first of these subjects, the accompanying memorandum prepared by the Comptroller of the Patent Office (Appendix X.) had been circulated to the members ; and, while it was felt that it was of too technical a nature for effective discussion at the Conference, there was a general feeling that it was desirable that the recognition throughout the Empire of a patent granted in one part of it should be facilitated, and that an inquiry should be instituted as to how this could be effected, and the following resolution was passed : — " That it would tend to the encouragement of inventions if some system for the mutual protection of patents in the various parts of the Empire could be devised. That the Secretary of State be asked to enter into communication with the several Governments in the first instance, and invite their suggestions to this end." PUECHASE OF OCEAN CABLES. On the question of the purchase of ocean cables, the report of the recent departmental committee on the subject of cable communications, and a memorandum by Sir Sandford Fleming (Appendix XII.), advocating the establishment of a complete system of Government cable communication between the various parts of the Empire, had been laid before the Conference. The attention of the members was directed to the risk pointed out by the committee of hampering and checking the construction of cables by private companies if any general scheme of State construction or purchase were adopted, and the decision arrived at was expressed in the following resolution:— " That it is desirable that in future agreements as to cable communications a clause should wherever practicable be inserted reserving to the Government or Governments concerned the right of purchasing on equitable terms and after due notice all or any of the cables to which the agreements relate." MEEGHANT-SHIPPING LAWS. STAMP DUTY ON COLONIAL BONDS. The question of uniformity throughout the Empire of merchant-shipping laws which had been suggested for discussion by the Government of the Cape was not, in the absence of the Prime Minister of that colony, taken up, nor was that of Imperial stamp charges on colonial bonds which had been proposed by the Government of the Commonwealth, Sir E. Barton having explained that his principal object in putting it forward was to indicate a possible manner in which His Majesty's Government might give some return to the colonies for any tariff preference which the colonies might accord to British goods. A memorandum explaining the present position of the law on this subject was prepared by the Department of Inland Eevenue and laid before the Conference (Appendix XL). WIRELESS TELEGEAPHY. In regard to* Government control of wireless telegraphy, the Admiralty explained that it was desirable that some system of general application should be in force everywhere, so that a ship might be able to communicate with any station all over the world, and also that there should be some regulation to prevent "interference" and to insure control in time of war. It was not desired that the Conference should take any action in the matter, but that the Governments of the colonies should not commit themselves to any particular scheme or system without previous communication with His Majesty's Government. METEIC SYSTEM. In addition to the commercial matters of which previous notice had been given, two subjects were brought forward by the Canadian Government during the sittings of the Conference—the adoption of the metric system of weights and measures, and the question of the postal charges on newspapers and periodicals. The following resolution was passed in regard to the metric system : — " That it is advisable to adopt the metric system of weights and measures for use within the Empire, and the Prime Ministers urge the Governments represented at this Conference to give consideration to the question of its early adoption." NEWSPAPEE POSTAGE. The resolution on the subject of newspaper postage was as follows : — " That it is advisable to adopt the principle of cheap postage between the different parts of the British Empire on all newspapers and periodicals published therein, and the Prime Ministers desire to draw the attention of His Majesty's Government to the question of a reduction in the outgoing rate. They consider that each Government should be allowed to determine the amount to which it may reduce such rate and the time for such reduction going into effect."

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NATUEALISATION. Notice had been given on behalf of the Governments of the Cape Colony and Natal that they desired to raise the question of the naturalisation laws; and the report of the departmental committee recently laid before Parliament, and the accompanying correspondence respecting a suggestion of the Dominion Government for facilitating the acquisition of rights of naturalisation throughout the Empire were laid before the members (Appendix XIII.). Some exchange of views on the subject took place, but no resolution was passed. PEOFESSIONAL EMPLOYMENT IN SOUTH AFEICA. Notice of a motion on the subject of admission to professional employments in the new colonies had been given on behalf of the Government of New Zealand to the following effect :— " That in arranging for the administration of that portion of the Empire known formerly as the South African Eepublic and the Orange Free State provision should be made that duly qualified members of the learned and skilled professions now admitted and hereafter to be admitted to practice in the Dominion of Canada, the Commonwealth of Australia, and in New Zealand be allowed to practise within the newly acquired territories referred to." The accompanying precis (Appendix XIV.) showing the action which had been taken in the matter by the Administration of the Transvaal and the Orange Eiver Colony was distributed to the members of the Conference. There was a general feeling that the condition laid down by the Government of the colonies for the reciprocal admission of professional men from them to practise in the self-governing colonies was reasonable and proper, and the resolution was modified to meet this view, and was passed in the following terms :— " That in arranging for tbe administration of the Transvaal and the Orange Eiver Colony it is desirable that provision should be made that duly qualified members of the learned and skilled professions now admitted and hereafter to be admitted to practice in the self-governing colonies be allowed to practise within the newly acquired territories on condition of reciprocal treatment in the colonies concerned." Sir Wilfrid Laurier dissented from the resolution, stating his reasons as follows : — " This is a Conference of the self-governing colonies. Those colonies which it is sought to affect by this motion are not represented at this Board. They are Crown Colonies now, and, for my part, I think it is questionable wisdom, however meritorious the end may be, to attempt to dictate or suggest what should be done in these countries, which are in an exceptional condition. I think it would be far better to confine ourselves to the colonies we represent on this Board in their relations with the Mother-country. It might serve a good purpose if there were reciprocity, but we know the conditions in my own country :we have not yet been able to reconcile our own differences from province to province so as to get a uniform system. Under these circumstances, how can we expect that conditions which prevail in one country or another can be accepted elsewhere? For my part, I am very strongly of opinion that we should leave this question entirely to the responsibility of the Government concerned, both of the Transvaal and the Orange Eiver Colony." The representatives of Canada desired to bring before the Conference the question of the law under which live cattle imported into this country from Canada are required to be slaughtered at the port of landing. It was considered, however, that the matter was not of sufficient general interest to be dealt with by the Conference, and arrangements were made for its discussion privately with the President of the Board of Agriculture. A similar course was adopted in regard to the relations of the Commonwealth and New Zealand with the islands of the Pacific, which formed the subject of informal discussion between Sir E. Barton and Mr. Seddon and the Colonial Office. VICTOEIA MEMORIAL. During the sitting of the Conference the Prime Ministers intimated their intention to ask their several Parliaments to vote the following sums towards the Queen Victoria memorial : The Dominion of Canada, £30,000; the Commonwealth of Australia, reply not yet received; New Zealand, not less than £15,000; the Cape Colony, £20,000; the Colony of Natal, not exceeding £10,000 ; the Colony of Newfoundland, £2,000. At the final meeting Sir Wilfrid Laurier moved the following resolution, which was carried unanimously : — " The members of this Conference, representing the self-governing colonies, desire before they separate to convey to Mr. Chamberlain their warm and sincere appreciation of the manner in which he has presided over their deliberations, as well as of the many courtesies which they have received from him ; they desire also to put on record the deep sense of gratitude which they feel for the generous hospitality which has been extended to them by the Government and people of the United Kingdom."

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CANADIAN, AUSTRALIAN, AND NEW ZEALAND CONTRIBUTIONS TO THE WAR.

BRITISH EMPIRE. Military and Naval Expenditure, 1898-99.

APPENDIX 11.

APPENDIX I.

32

Year ending Population. Military Expenditure (Ordinary Services). Military Expenditure per Naval Expenditure. Head of Population. Naval Expenditure per Head of Population. _r i j _m _ I Naval and Militarv Naval and Military diture - Expenditure. ne J of p opula £ ion . £ 29,310,000 £ s. 0 14 d. If £ 31,255,500 £ s. 0 15 d. 1 £ 60,565,500 £ s. 1 9 d. 2f Estimates 1902-3. United Kingdom 41,454,621 (Census, 1901.) 30/6/99 if Canada ... Newfoundland New South Wales Victoria Queensland ... South Australia Western Australia Tasmania New Zealand Cape of Good Hope Natal (population for 1898) 5,312,500 210,000 1,356,650 1,163,400 512,604 370,700 171,032 182,508 756,505 2,265,556 902,365 533,553 8,800 185,699 130,640 68,285 15,762 12,336 8,922 105,477 307,714 219,371 0 0 0 0 0 0 0 0 0 0 0 2 0 0 10 2 8| 2 3 2 8 0 10* 1 5i 0 Hi 2 94 2 8* 4 10i Nil Nil 47,207 57,883 28,200 16,642 4,626 5,065 20,830 30,000 12,000 Nil Nil 0 10 0 1 li 0 0 lOf 0 0 6J 0 0 61 0 0 61 0 0 3| 0 0 3i 533,553 8,800 232,906 188,523 96,485 32,404 16,952 13,987 126,307 337,714 231,371 0 0 0 0 0 0 0 0 0 0 0 2 0 0 10 3 5 3 3 3 9i 1 9 1 H| 1 6 3 4 2 11| 5 If 31/12/99 31/3/99 30/6/99 Total population 13,203,820 1,596,559 0 2 5 222,453 0 0 4 1,819,012 0 2 9

1. 2. 3. 4. Expenditure per Head of Population. 5. Proportionate Number for United Kingdom. 6. Proportionate Expenditure for United Kingdom. Number of Men. Expenditure. Number per 1,000. Canada New South Wales Victoria Queensland ... South Australia Western Australia Tasmania New Zealand... 8,400* 6,208 3,897 2,903 1,494 1,165 796 6,000| £ 620,000t 391,620 138,327 203,164 82,068 51,646 38,393 334,000§ 6 4 8 £ 0 0 0 0 0 0 0 0 s. d. 2 4 5 9 2 3 8 7 4 6 5 8 4 6 8 8 70,000 189,000 140,000 252,000 168,000 266,000 196,000 336,000 £ 4,900,000 12,075,000 4,725,000 18,025,000 9,450,000 11,900,000 9,450,000 18,200,000 United Kingdom 30,863 355,753 222,974,00011 "8_ 5 7 2 355, 753 222,974,000 * Including garrison sent to Halifax to relieve Imperial garrison. t Excluding Lord Strathcona's expenditun || Excluding public subscriptions, which are included in the figures for the colonies where possible. J Approximate. § Excluding liability for pensions, £3,000 per annum.

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APPENDIX 111. COLONIAL TROOPS FOR IMPERIAL SERVICE IN WAR. Memorandum by the Colonial Defence Committee. The Secretary of State for the Colonies has referred to the Colonial Defence Committee for their consideration a copy of the following notice of motion, which has been formulated by the Government of New Zealand for discussion at the Conference of Colonial Premiers to be held shortly after the coronation:— " That it is desirable to have an Imperial Reserve Force formed in each of His Majesty's dominions over the seas for service in case of emergency outside the dominion or colony in which such reserve is formed. The limits within which such Reserve Force may be employed outside the colony wherein it is raised to be defined by the Imperial and colonial Governments at the time such reserve is formed, and to be in accordance with any law in force for the time being respecting the same. The cost of maintaining and equipping such Imperial Reserve Force to be defrayed in such proportion and manner as may be agreed upon between the Imperial and colonial Governments." The Secretary of State for War, at the suggestion of the Secretary of State for the Colonies, has referred to the Committee a paper drawn up for the War Office by Lieut.-Colonel Altham, C.M.G., Assistant Quartermaster-General at Headquarters, on the organization of colonial troops for Imperial service. The paper is printed as an appendix to this memorandum. 2. The principle brought forward in the notice of motion is identical with that embodied in "The New Zealand Defence Act Amendment Act, 1900," which was discussed by the Colonial Defence Committee in their Memorandum No. 271 M, dated the 2nd August, 1901. In that memorandum they pointed out thai; the Act represented the first attempt by a colony to evolve such an organization of its military resources as would enable it to place in the field trained troops available for Imperial service outside the colony, and they expressed the opinion that the measure constituted an important step towards facilitating the conception and execution of comprehensive schemes of Imperial defence. Such schemes, drawn up to meet the conditions of the various wars in which the British Empire might be engaged, involve the despatch by sea of a certain number of expeditionary forces as soon after the outbreak of war as naval conditions permit. These forces may be required to reinforce the local troops in any part of the Empire specially exposed to attack. For such a purpose troops despatched by the self-governing colonies would be of special value: no European Power other than Great Britain is in a position to draw on large communities of white subjects outside Europe for military assistance, and the action of expeditionary forces based on Australasian and Canadian ports might be of great importance during the early stages of a war. But in order that the operations of the various expeditionary forces should be effectively combined, it is essential that the co-operation of all should be assured, and that each force should be efficient in all respects for the service required of it. 3. Lieut.-Colonel Altham's paper, written from the point of view of the Department of the Headquarters Staff, which has recently been charged, under the control of the Commander-in-Chief, with the preparation and maintenance of detailed plans for the military defence of the Empire, lays special stress on these two essential points, and makes definite suggestions in regard to the organization of contingents for Imperial service from the self-governing colonies. The Colonial Defence Committee are in entire accord with the principles laid down in this paper, and are of opinion that the detailed proposals in regard to organization are based on a correct appreciation of the military resources and requirements of the various colonies, and deserve the most favourable consideration of the Governments of Australia, New Zealand, and Canada. 4. It is fully realised that arrangements for insuring the combined military action of all parts of the Empire in times of great emergency must be dependent on the voluntary co-operation of the self-governing colonies. In such a contingency it will be essential to success that the military forces of the Empire should be employed against the common foe in conformity with one general plan, and that the supreme military control of those forces should be vested in one central authority. The disadvantage of divided military counsels and disconnected enterprises in war is apparent from the study of all military history. The general plans for the defence of a great nation against the most serious dangers which it may be required to face must be drawn up in peace-time, as on them should be based the organization of the national forces and their preparation and training for war. But it is necessary for the preparation of such general plans, and for the due elaboration of subsidiary schemes of offence and defence, that the central authority, which is responsible for the defence of the Empire as a whole, should know in peace what forces are likely to be at its disposal in time of war. For these reasons the Colonial Defence Committee earnestly hope that the great self-governing colonies may be able to give some assurance as to the strength of the contingents which they would be able to place at the disposal of His Majesty's Government for extra-colonial service in a war with a European Power. On the other hand, the Committee suggest that it would be of advantage if the Imperial authorities could confidentially communicate to the colonial authorities the general nature of the duties which it is proposed to assign to their contingents in such a war. 5. The two points embodied in the second and third sentences oi the notice of motion are dealt with on lines differing somewhat from the provisions of the New Zealand Act already referred to. 5—A. 7.

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In the Act it was proposed to fix the limits within which the Imperial Reserve Force might be employed on Imperial service by subsequent Act or by resolution of both Houses of the colonial Legislature. It is now proposed that these limits should be defined by the Imperial and colonial Governments at the time such reserve is formed, and should be in accordance with any law in force for the time being respecting the same. It is no doubt necessary that the individual enrolling in the Imperial Reserve should be aware before enrolment of the extent of his liabilities ; but a geographical definition of the limits of service in a public Act will be attended with difficulty, and possibly open to objection. It would be preferable that enrolment in the Imperial Reserve should simply be for general service in the event of war with one or more European Powers. These conditions appear to be sufficiently definite for the individual, while they leave the mode of employment of the force to be settled, as already explained, between the Imperial and colonial Governments. 6. The concluding sentence of the notice of motion lays down that the cost of maintaining and equipping the Imperial Reserve Force is to be defrayed in such proportion and manner as may be agreed upon between the Imperial and colonial Governments. The New Zealand Act of 1900 was silent on this point, but it was implied that no expenditure from the British Exchequer in time of peace was involved'—a course which certainly avoided questions of divided responsibility and some other difficulties. Although the cost of the present scheme is very small compared with that already borne by the taxpayer of the United Kingdom for the defence of the Empire, the principle of Imperial subsidies for the maintenance in peace of colonial troops is a new one, and the matter is one that cannot be dealt with apart from the general question of the incidence of the cost of Imperial defence, which, the Colonial Defence Committee understand, is to be discussed in its most important aspect—viz., that of naval expenditure—at the Conference of Colonial Premiers. The Committee therefore confine themselves to expressing the hope that the present scheme, of which the initiative is due to the Government of one of the self-govern-ing colonies, will not be allowed by those colonies to fall through on financial grounds. The cost involved is small in proportion to the direct advantage to the colonies themselves of having at hand troops organized and available at short notice for expeditionary service, while the possession of such forces, which it would be impossible to supply by means of extemporised effort, would enable them to take an active share in protecting and securing their own interests, which are inseparable from the general interests of the Empire. (Signed) J. E. Clauson, Secretary, 13th June, 1902. Colonial Defence Committee.

APPENDIX. The Organization of Colonial Troops for Imperial Service. [By Lieut.-Colonel E. A. Altham, C.M.G., Assistant Quartermaster-General at Headquarters.] General Principles. Prior to the outbreak of the war in South Africa, so far as any general scheme for the defence of the Empire as a whole had been considered, it was assumed that the military responsibilities of our great self-governing colonies were limited to local defence, and that the entire burden of furnishing reinforcements to any portion of the Empire against which a hostile attack in force might be directed must fall on the regular army. There may possibly have been some pious hope that in time of need the colonies might rally to the Mother-country, but no definite arrangements were made, nor were inquiries even on foot, as to whether such aid might be expected, and, if so, iv what strength. Indeed, the necessity for it was by no means realised and its reliability was doubted. 2. The experience of the South African war has, however, established two important facts : — (a.) That the regular army, as organized before the war, was by itself inadequate in strength to the military needs of the Empire. (b.) That the self-governing colonies are willing and able to assist in making good some part of the deficiency in military strength which the war has disclosed. 3. The present war has, in fact, been a valuable illustration of the necessity for organizing the defence of the Empire against far graver contingencies; and it is essential to preparation that it should be definitely known in peace what forces can be relied on in war. Success in a great war can only be insured by a continuous policy of careful organization and preparation in peace. 4. For these reasons the definite organization in peace of the assistance which the colonies would be willing and able to place at the disposal of the Imperial military authorities in war is a vital matter. 5. Before approaching the solution of this question it is desirable to recapitulate briefly certain general principles : — (a.) The main burden of a great struggle between the British Empire and one or more States of European race or descent must be borne by the white subjects of the King. (b.) Military contingents, therefore, of other than men of European descent need not be considered with regard to this particular problem, although the great value of the Indian army and the usefulness of the African and other Native forces are fully recognised. (c.) The white population of all colonies, other than the great self-governing colonies, being very small their power of contributing substantial aid to the Empire would be insignificant, and would for practical purposes only suffice for assistance in local

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self-defence. The problem, therefore, is narrowed to the consideration only of the case of the self-governing colonies— i.e., Australia, New Zealand, Canada, and South Africa. (d.) Under the existing conditions of the political constitution of the Empire there is no central authority vested in the Imperial Government which is empowered to draw up in Londom and enforce throughout the Empire a definite uniform organization for Imperial service. We can only make suggestions to the self-governing colonies and rely on the good will and loyalty of their various Ministries to give effect to our suggestions. In making these suggestions, however, we may well call attention to the selfevident fact that in a great war the Empire must stand or fall as a whole, and that therefore in assisting the Empire wherever assistance is needed the colonies will but be defending themselves. (c.) To secure, however, the willing co-operation of the self-governing colonies in establishing a sound military organization for mutual aid it is necessary to have most careful regard to local conditions and developments. So long as essentials are secured, the greatest local freedom should be given as to details. (/.) There are only two conditions really essential: — (i.) That the supreme authority, which is responsible for the defence of the Empire as a whole, should be able to rely with certainty on colonial contingents of definite strength being available for defensive or offensive operations in any part of the world as soon as His Majesty's navy has acquired such command of the sea as will permit of transmarine movement of troops. (ii.) That these contingents should be efficient both in equipment and training. 6. Having regard therefore to these preliminary considerations, it would appear expedient to state briefly the main features of the existing military organization of each group of the selfgoverning colonies, and then to examine how far such organization can be utilised to further the object in view. Australia. 7. The six colonies of the Commonwealth of Australia have each a separately organized military force serving under varying conditions. The whole of these forces were on federation placed under the control of the Federal Government, and, as soon as a headquarters staff has been appointed, the conditions of service will no doubt be assimilated throughout the Commonwealth. Broadly speaking, all six colonies, except West Australia, have three categories of troops — (1) Permanent corps, (2) partially paid or militia, (3) Volunteers. West Australia has only two— Permanent and Volunteers. The following was the existing strength of the force in each colony on the 31st December last :—

All the above forces are recruited by voluntary enlistment, but in the Colonies of Queensland, South Australia, and Tasmania every male inhabitant between certain ages is legally liable to compulsory military service in the case of invasion or insurrection. The Permanent forces consist mainly of staff, artillery, and engineers. The pay of privates, sappers, and gunners varies from 2s. 3d. to 7s. per diem. The partially paid forces are enlisted for a short term of years, and their course of annual training comprises a varying number of drills (e.g., in the case of Victoria, fifteen half-days and twenty-four night drills), a period of from four to eight days in camp, and an annual course of musketry. The system of payment also varies. In Victoria, for instance, privates completing all the above requirements receive £7 10s. per annum. In New South Wales payment is made at the rate of Bs. for a full day's drill, 4s. for half-day, and 2s. for each night drill, with an annual bonus of £1 if efficient. In South Australia there is also an annual allowance of from £1 to £4 for the men, and £3 to £7 10s. for the officers. The Volunteers are run much on the same lines as those in the United Kingdom. The Colonial Defence Committee have recommended their abolition, and that, with the exception of a nucleus of Permanent troops, the Australian forces should be composed entirely of partially paid troops. As each colony has at present a separate Military Ordinance or Defence Act, the conditions under which the various forces are liable to be called out for active service somewhat vary in their terms ; but, speaking broadly, there is a general liability, "in the event of war or danger of war," to service in any part of Australia.

Permanent. Partially paid. "Volunteers. Total. New South Wales Queensland ... South Australia Western Australia Tasmania ... Victoria 646 293 43 522 27 389 5,987 3,021 2,889 2,174 262 3,484 3,232 714 1,735 2,462 9,865 4,028 2,932 2,696 2,024 6,335 Total 1,920 17,817 8,143 27,880

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8. These various forces have been organized for the separate defence of their respective colonies, and for each colony a local scheme of defence has been drawn up by the local authorities. Fortunately, however, the Colonial Defence Committee have for years been given annually an opportunity of criticizing these schemes, and the constant supervision of that body has insured the observance of sound general principles and the maintenance of a uniform system of defence. The schemes are all based on the general principle that Australia will be protected by the navy from organized attack on a large scale. They look only to the protection of the important ports in the temporary absence of His Majesty's ships by means of fixed defences and moderate garrisons, and to the provision in each colony of a field force to repel any attempt to land on the undefended coast-line. 9. The possibility of co-operation between the forces of the various Australian Colonies in external enterprises in war has, however, been for more than ten years in the minds of the military authorities in Australia. In May, 1890, the Colonial Defence Committee pointed out that, in the event of a serious war, the military role contemplated by the Australian Colonies need not necessarily be restricted to the passive defence of their ports. These colonies would doubtless desire to accept some share in the general defence of the Empire, and to enable them to do so it was essential that their land forces should be organized on a common basis, so as to be capable of being brought together for concerted action. This suggestion was carefully considered at conferences of the Commandants of the Australian forces held in October, 1894, and January, 1896, and a provisional scheme was drawn up under which certain existing units were selected from each colony and allotted to an " Australian Field Force," which was thus built up to a strength of one mounted brigade and one infantry division. The mounted brigade included three regiments of mounted rifles, a battery of artillery, ammunition column, mounted detachments, engineers, &c, its total war establishment being 2,670. The division included a brigade division of field artillery, a company of engineers, and departmental details, having a total war establishment of 9,526. In their recent Memorandum No. 254 M, which was specially drawn up on the 3rd April, 1901, for the guidance of the Commonwealth Ministry in carrying out the federation of the military forces of Australia, the Colonial Defence Committee again "drew attention to this matter, and pointed out that federation will make it now possible to provide a homogeneous and efficient force " which can to some extent undergo combined training in peace and which will be capable of rapid mobilisation in war." In a subsequent Memorandum No. 281 M, dated the Ist November, 1901, on the armament of field artillery in Australia and New Zealand, the Colonial Defence Committee have further suggested that, as the Australian has proved in South Africa his special aptitude for the role of mounted rifleman, the Federal Field Force should be organized in two mounted brigades and one infantry brigade; that the mounted brigades should be drawn from the pastoral districts, where the physical qualifications of the inhabitants fit them specially for this work; and that the infantry brigade should be built up from general service companies raised from those members of certain corps who would be willing to undertake liability for extended service in time of war. These suggestions have been recently approved by the Secretary of State for War, and transmitted to Australia by the Colonial Office. 10. As yet no further practical steps have been taken in Australia to complete the organization of the Federal Field Force proposed by the Colonial Defence Committee, but there are grounds for hoping that the general principles involved are acceptable to the minds of Australian statesmen, and that as soon as the working-machinery of an Australian Headquarters Staff has been set in motion the question will be definitely taken up and the necessary legal powers obtained from the Commonwealth Legislature. Having regard, then, to the principles already submitted in sub-paragraphs (c) and (/) of paragraph 5, we shall do better if we utilise and adapt to our purpose these ideas, which have developed almost to fruition in Australian minds, than if we attempt to thrust upon them fresh proposals. A force of two mounted brigades and an infantry brigade would probably give a total strength of about nine thousand men. In time Australia may fairly be expected to considerably increase this. 11. As regards Australia, therefore, it is submitted that it should be the policy of His Majesty's Government to encourage an organization for Imperial service on the following lines :— (1.) The field force of the strength above suggested—viz., two mounted brigades and one infantry brigade —to be at the disposal of the Imperial Government for general service, in the case of war between Great Britain and one or more European Powers, as soon as the naval authorities are in a position to undertake the responsibility for the movement of troops by sea. (2.) This contingent to be termed "The Imperial Australian Force"; its officers to be nominated by the Governor-General on the advice of his Ministry and granted by the King temporary rank in the army ; the right to be reserved to His Majesty to appoint, on mobilisation, a general officer to take supreme command and a headquarters staff, but the latter to be selected, in the main, from Australian officers. (3.) Officers and men belonging to the Force to be trained in peace-time on the same system as that adopted for the partially paid forces of Australia, but to engage for periods of not less than two years to serve in war wherever required. In consideration of this agreement, all officers and men who carry out the conditions of their annual course of training to be given a retaining fee (in addition to their military pay). (4.) All units of the Force to be inspected in the field annually by the General Officer Commanding in Australia, and his report to be forwarded by the Commonwealth Ministry for the information of the Commander-in-Chief.

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(5.) Officers and men, on mobilisation, to receive pay at the same rates as those adopted for the Permanent forces of Australia. When serving outside Australia they will be subject to the Army Act. (6.) Mobilisation stores, to enable the Force to take the field fully equipped, to be maintained locally in Australia. (7.) All other details of organization to be settled by the local authorities, but so far as possible the officers and men should be organized in peace in the battalions, regiments, and brigade divisions, or at least in the batteries, companies, and squadrons to which they would belong in war. The scheme for bringing these units together into a higher organization on mobilisation must be carefully worked out in peace, and be complete in every detail. 12. It will be observed that the above lines are suggested as those on which the Commonwealth Ministry should be encouraged to work. How and in what form these suggestions can be best laid before the Australian Ministry is a delicate matter which needs careful consideration. It is believed to be the policy of His Majesty's Government not to press the self-governing colonies in such matters, but to look rather to the colonies to take the initiative. It is understood, however, that the subject of colonial co-operation in Imperial defence is likely to be mentioned at a Conference of Colonial Premiers, which will probably be held on the occasion of the King's coronation ; if so, this would be an admirable opportunity for the free exchange of the views of His Majesty's and the colonial Governments. The matter is, however, one on which it is desirable that the Colonial Office should be consulted, and possibly it may be also thought expedient that the details of this scheme should be referred to the Colonial Defence Committee for consideration. New Zealand. 13. The military forces of New Zealand consist of—(1) Permanent militia, (2) militia, (3) Volunteers. Force (2) comprises all male inhabitants (except Volunteers and seamen) between the ages of seventeen and fifty-five, and is liable to an annual training not exceeding 168 hours in the year, but at present it is neither trained nor organized. The strength of the trained forces of the colony was as follows on the 31st December last:— All Banks. Permanent ... . ... ... ... ... ... 299 Volunteers ... ... ... ... ... ... .. 17,003 Total ... ... ... ... ... ... 17,302 The New Zealand forces have, in training, organization, and discipline, been in past years somewhat behind the Australian Colonies. Nevertheless, New Zealand may take great credit in that it is the first and, as yet, the only colony in the Empire to enact legislation permitting the enrolment of colonists as an Imperial Reserve. The section of " The New Zealand Defence Act Amendment Act, 1900," creating this reserve is printed in the Appendix of Memorandum No. 271 M of the Colonial Defence Committee, which discusses in detail the effect of this measure. It will be observed that the Committee recommend that the reserve should be organized as a separate field force on the same lines as the Australian Field Force. The Secretary of State for War has approved of this recommendation, and it may therefore be assumed that the same policy should be adopted as regards the treatment of this question in New Zealand as has been already proposed for Australia. The contingent from this colony might be termed " the Imperial New Zealand Force," and the conditions suggested in paragraph 11 might be applied mutatis mutandis. The present war has caused a remarkable military revival in the colony, and during the last year the mounted rifles increased in strength from 1,194 to 6,474, and the infantry from 4,997 to 7,873. If these figures are maintained it would seem possible to organize for Imperial service a mounted brigade and two battalions of infantry—say, in all about four thousand men. South Africa. 14. The excellent material which exists in the manhood of South Africa for building up in the future a valuable addition to tbe forces of the Empire is very manifest. The war has further shown that life on the veldt even in peace-time insures the possession of that readiness of resource and natural instinct which are essential to a soldier in the field under the conditions of modern war. It is evident that men in possession of these natural advantages require less training for war than lads born and bred in the large cities of civilised countries. It may be hoped that in the future, therefore, we may be able to take advantage of this admirable recruiting-ground, and that both the Dutch as well as the English colonists of South Africa may some day fight for the Empire side by side with the regular army. It is obvious, however, that at the present moment the consideration of any scheme for the organization of an Imperial South African Force would be mere academical labour. Canada. 15. The Canadian military Force consists entirely of militia, in which all male inhabitants of Canada between the ages of fifteen and sixty (excepting only ministers of religion, Judges, professors, &c.) are liable to serve. This force is divided into—(l) Permanent, (2) Active, (3) Reserve. The two first classes are recruited by voluntary enlistment; the third, which is untrained and unorganized, comprises the rest of the male population.

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The establishment of the first two classes is as follows :—

All Ranks.

Permanent ... ... ... ... ... ... ... 1,021 Active ... ... ... ~. ... ... ... 37,131 Total ... ... ... ... 38,152 The Active Militia undergoes an annual training, the rural corps go into camp for twelve days, the " city corps" being drilled in towns. In his annual report of January last the General Officer Commanding Canadian Militia states that the city corps have absolutely no training whatever in the field duties of a soldier, and that the rural corps " will never be made even fairly fit to take the field with the limited period of annual training that they receive under existing conditions." In the event of war with the United States it is on this Canadian militia that must depend the entire safety of Canada until reinforcements arrive from England. It may therefore be concluded that the best way in which Canada can co-operate in Imperial defence is by making her militia an efficient force. It is more important that the Canadian Ministry should be strongly pressed to take this reasonable precaution than that they should maintain contingents for general Imperial service. 16. Nevertheless, the services rendered by Canadians in South Africa, as well as the history of the last Anglo-American war, show that the Canadians are excellent fighters, and would be a valuable addition to the Imperial forces. It is reasonable to assume that Canada will desire to co-operate with Australia in any steps that may be taken for creating a permanent organization of colonial Imperial forces, and, if such a desire be felt, there are strong political reasons for encouraging it. Moreover, it is possible that by the example of a Canadian Imperial Force the militia generally might be worked up to a higher standard of efficiency. The strategical position of Canada makes it, however, unwise that any very large contingent should be drawn from her defence force unless the strength of that force should in the future be increased. It is suggested, therefore, that if a Canadian Imperial Force be organized it should be limited, for the present, to a brigade division of field artillery and a brigade of infantry. The force might be organized on lines similar to those suggested for Australia. General Summary. 17. The proposals made in this paper contemplate, therefore, the organization of the following colonial troops for general Imperial service in war : —

(Signed; . E. A. Altham, A.Q.M.G. War Office, 25th November, 1901.

APPENDIX IV. MEMORANDUM ON SEA POWER AND THE PRINCIPLES INVOLVED IN IT. The importance which attaches to the command of the sea lies in the control which it gives over sea communications. The weaker sea Power is absolutely unable to carry to success any large military expedition over sea. The truth of thi3 is shown by reference to the history of the past. In ancient times the Greek victory of Salamis threatened the Persian communications across the Dardanelles, and doubtless this danger contributed to bring about their retreat into Asia. The failure of the famous Syracusan expedition was due to the defeat of the Athenian fleet, and had its modern counterpart in the failure of Admiral Graves off the entrance to Chesapeake Bay in 1781. In both cases the army had to surrender because its communications were cut. The defeat of Nikias dealt a heavy blow to the supremacy of Athens, and may, perhaps, be said to have been one of the principal events which led to her downfall. The surrender of Cornwallis at Yorktown was the prelude to the independence of the United States. The main cause of the failure of the expedition of Napoleon to Egypt was the defeat of the French fleet at the Nile, which was the first step towards cutting his communications with France and the subsequent surrender of the French army. On the other hand, the advantages which accrue to the stronger sea Power, after it has won the command of the sea, are equally illustrated by historical example.

Colony. Units. Approximate Strength. Australia ... New Zealand ... | -I 2 mounted brigades ... 1 infantry brigade 1 mounted brigade 2 infantry battalions .... [ ? 3 1 brigade division, field artillery 1 infantry brigade ) I 9,000 4,500 South Africa [ ? ] Canada -I I 3,000 Total ... 16,500

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The fall of Quebec and the conquest of French Canada was mainly due to the fact that our superior sea power closed the Gulf of St. Lawrence to the French and opened it to us. In any similar struggle in the future this route will be as vital as in the past. The expedition to Egypt under Abercromby in- 1801, the Peninsular War, the expedition to the Crimea, the South African War just concluded, are all instances of great military enterprises which could only have been carried out by a nation holding the command of the sea. The command of the sea is determined by the result of great battles at sea, such as Salamis, Actium, Lepanto, those which led up to the defeat of the Armada, and those between the Dutch and English in the seventeenth century, in which each side concentrated his whole available force for the decisive struggle. To any naval Power the destruction of the fleet of the enemy must always be the great object aimed at. It is immaterial where the great battle is fought, but wherever it may take place the result will be felt throughout the world, because the victor will afterwards be in a position to spread his force with a view to capturing or destroying any detached forces of the enemy, and generally to gather the fruits of victory in the shape of such outlying positions as the New Hebrides, Fijis, Singapore, Samoa, Cuba, Jamaica, Martinique, the Philippines, Malta, or Aden, which may be in possession of the enemy, his shipping and commerce, or even to prosecute such oversea campaigns as those in the Peninsula and South Africa. Stress is laid on the importance of the great battle for supremacy, because the great development of the navies of France, Germany, the United States, and Russia indicate the possibility that such battles may have to be fought in the future. It is the battleships chiefly which will have to be concentrated for the decisive battle, and arrangements with this object must be made during peace. The geographical conditions and the varied interests of the maritime Powers prevent such complete concentration in modern times as was practicable in the past. Thus Russia divides her battleships between the Baltic and the Pacific; the United States between the Atlantic and Pacific; both Germany and France have concentrated in European waters, where also the greater part of the British battleships are massed. Our possible enemies are fully aware of the necessity of concentrating on the decisive points. They will endeavour to prevent this by threatening our detached squadrons and trade in different quarters, and thus obliging us to make further detachments from the main fleets. All these operations will be of secondary importance, but it will be necessary that we should have sufficient power available to carry on a vigorous offensive against the hostile outlying squadrons without unduly weakening the force concentrated for the decisive battle, whether in Europe or elsewhere. The immense importance of the principle of concentration and the facility with which ships and squadrons can be moved from one part of the world to another—it is more easy to move a fleet from Spithead to the Cape or Halifax than it is to move a large army, with its equipment, from Cape Town to Pretoria —points to the necessity of a single navy, under one control, by which alone concerted action between the several parts can be assured. In the foregoing remarks the word " defence " does not appear. It is omitted advisedly, because the primary object of the British navy is not to defend anything, but to attack the fleets of the enemy, and, by defeating them, to afford protection to British dominions, shipping, and commerce. This is the ultimate aim. To use the word " defence " would be misleading, because the word carries with it the idea of a thing to be defended, which would divert attention to local defence instead of fixing it on the force from which attack is to be expected. The traditional role of the British navy is not to act on the defensive, but to prepare to attack the force which threatens —in other words, to assume the offensive. On one occasion England departed from her traditional policy, and, acting on the defensive, kept her ships in harbour unrigged and unmanned, with the result that the Dutch fleet sailed up the Medway and burnt the ships of war at their moorings. The strength and composition of the British navy, or of any British squadron, depends, therefore, upon the strength and composition of the hostile forces which it is liable to meet. The total estimated national expenditure for 1902-3, exclusive of war charges, amounts to £129,159,000, of which the navy estimates account for £31,255,500, or about one-fourth, which is equal to a contribution of 15s. Id. per head of the population of the United Kingdom. If this were divided equally per head among the white population of the Empire, the charge per head would amount to 12s. OJd. For tbe actual naval expenditure per head in the several parts of the Empire, see Appendix A. The annual value of British trade, which it is the ultimate object of the navy to protect, amounted in 1900 to — £ Trade of United Kingdom with foreign countries ... ... 665,895,000 ~ ~ British dominions beyond the seas 211,555,000 Total trade of United Kingdom ... ... 877,450,000 Total trade of British dominions beyond the seas with foreign countries and among themselves ... ... ... 327,500,000 Of this last about one-third is estimated to be intercolonial. It will be seen that about one-fourth of the total trade of the Empire is not directly connected with the United Kingdom. The question may with advantage be further considered with reference to—(1) Atlantic Ocean. (2) Eastern Seas and Pacific Ocean. The trade which passes the west coast of Africa cannot be placed at a less value than £140,000,000 per annum, of which about one-fourth is with South African ports, one-third with

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Australasia, and one-fourth with South America. South Africa, Australia, and New Zealand are therefore each interested in the maintenance of a squadron on the west coast of Africa sufficiently powerful to protect this trade. The British trade in the North Atlantic to the continent of North America amounts to upwards of £200,000,000 per annum, of which about five-sixths is with the United States. The trade of Canada in 1900 amounted to £76,582,000, of which about £31,341,000 was with the United Kingdom, £1,882,000 with other British dominions, and the remainder with foreign countries, including the United States. Canada would therefore be interested in the success of the British squadrons employed in protecting this trade along its whole route. Canada is therefore interested in the strength of the British fleet as a whole, and not only in the North American Squadron. The cost of maintaining the British squadrons on these stations, exclusive of any interest or sinking fund on the first cost of building, is £802,000 per annum. This is included in the General Naval Vote, which is borne by the United Kingdom aided by annual payments, spontaneously offered, by the Cape of Good Hope of £30,000 and by Natal of £12,000 in 'lieu of 12,000 tons of coal. The magnitude of the trade in Eastern waters is shown in the following table, which gives the total value of the exports and imports in 1900 in the States mentioned : —

Thus, less than half the trade is with the United Kingdom, and yet the cost of maintaining the British squadrons in the Eastern seas and Pacific, which are ultimately charged with the protection of the whole, is thus apportioned :— £ Great Britain ... ... ... ... ... ... 1,994,400 Commonwealth of Australia... ... ... ... ... 75,500 New Zealand ... ... ... ... ... ... 15,500 India ... ... ... ... ... ... ... 161,600 The total charge, exclusive of any interest or sinking fund on the first cost of building, amounts to £2,247,000 per annum. Admiralty, June, 1902.

APPENDIX A. British Empire.—Naval Expenditure.

With United Kingdom. Intercolonial with Commonwealth. With other British Dominions. With Foreign Countries. Total. Commonwealth of Australia New Zealand India ... £ 50,682,000 16,764,000 66,124,000 £ 27,264,000 £ 11,675,000 4,502,000 26,214,000 £ £ 25,053,000 114,574.000 2,627,000 23,893,000 49,874,000 142,212,000

Population. Naval Expenditure per Head Remarks, of Population. £ s. i. 0 15 1 Year. Naval Expenditure. 1902-3 United Kingdom ... New South Wales... Victoria ... Queensland South Australia ... Western Australia Tasmania 41,454,621 1901. 1,352,509 1,199,068 496,596 362,604 182,553 172,475 £ 31,255,500 1900. 47,831 59,401 34,796 17,594 4,732 4,970 0 0 81 0 1 0* 0 1 2 0 0 llf 0 0 6f 0 0 7* 0 0 lOf n n fiTotal Australia ... 3,765,805 169,324 0 0 lOf New Zealand 772,719 20,924 ll u of Nil Nil 0 1 li £30,000 paid annually towards expenditure of Imperial Government. 0 4 5f £12,000 paid in lieu of 12,000 tons of coal. 0 0 6* 30/6/99 Canada ... Newfoundland Cape of Good Hope (white) 5,312,500 210,000 538,000 Nil Nil 30,000 Nil Nil 0 1 li 1898 Natal ,53,688 (216,710,4831 l 1168,000) 12,000 0 4 5f 31/3/99 11ndia ... 413,747 * Ne; subsidy to . year 1900). ,rly. f Includes £10 Ldmiralty for manning ai (0,000 contribution nd maintaining H, towards H.M. i ,M. ships for naships on East Ii ral defence of Ii idies Station, and £61,000 idia. } Europeans (for

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APPENDIX Al. Table showing the Annual Cost of Maintenance, exclusive of First Cost of Building, of the British Squadrons in (1) Atlantic Ocean ; (2) Eastern Seas and Pacific Ocean : — (1.) Atlantic Ocean. £ North America and West Indian ... ... ... ... 330,000 Cape of Good Hope... ... ... ... ... ... 396,000 South-east coast of America ... ... ... ... ... 76,000 Total ... ... ... ... ... ... 802,000 (2.) Eastern Seas and Pacific. £ China ... ... ... ... ... ... ... 1,430,000 East Indies ... ... ... ... ... ... 303,000 Australia ... ... ... ... ... ~, ... 312,000 Total Eastern Seas .. ... ... ... ... 2,045,000 Pacific ... ... ... ... ... ~. ... 202,000 Total ~, ~, ... ... ... ... 2,247,000

APPENDIX V. (1).

1900.—NEW ZEALAND.—DEFENCES OF THE COLONY. Statement by the Right Hon. R. J. Seddon, Premier and Minister of Defence, respecting Harbour Defences, Colonial Defence Forces, Imperial Reserve, Cadet Corps, Rifle Clubs, and other matters connected with the Defences of the Colony. Mr. Speaker,— Honourable members will, I hope, agree with me that it is consistent with one's duty to the Empire and to the colony, and not out of place, to give attention at this juncture to the allimportant subject of our defences, and, if possible, to evolve a means of perfecting, extending, and strengthening the same, both for internal and external purposes. Lessons taught by sending Contingents to South Africa. The equipping and sending of our contingents, and the lessons taught by the war in South Africa, must not be ignored. We must not be blind to the altered conditions that have arisen during the last few months, and which at present may appear trifling, but which in years to come may be a source of anxiety to the colony and to the Empire. Altered conditions. There are also eventualities that may arise in connection with the adjustment of affairs in China; and, taking the outlook as a whole, it is prudent for us to complete our harbour-defences, increase and fully equip our Volunteer corps, give a military :raining to our youths, encourage rifle clubs, and, in addition, create a reserve force equal to any emergency. Want of capital. The chief drawback has been the finding of the capital required for the completion of our harbour-defences, the equipment of the defence forces, the purchase of great and small arms and munitions of war. Important as these are, still the opening-up and roading of our land, the construction of railways, and the development of our industries have been such a tax upon our resources that expenditure in regard to harbour-defences, defence forces, rifle clubs, and cadet corps has had perforce to be curtailed. Ways and means. Interest and sinking fund. I therefore, with much reason, urge that it would be of advantage to the Mother-country and to the colonies if the moneys required for harbour-defences, and for arming the defence forces, were raised by the Imperial authorities, and advanced to the colony, which should pay interest thereon at the rate of 3 per cent, per annum. In the calculation of this interest the difference between the rate at which the colony could raise the moneys and the rate at which it is obtained by the Imperial authorities would form a sinking fund to pay off the principal within a reasonable time. Eeserve an advantage. The proposal that the Imperial authorities should find the capital is warranted by the fact that the imperfect defences of the colonies would be remedied. There would also be the direct advantages to the Imperial authorities and the Empire in having a reserve force established ready for any contingency that might arise, and in having the most modern guns and small arms in the colonies, to the use of which our forces would be trained, and be available whenever required. 6—A. 7.

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Thousands of men available. Maoris would enrol in reserve. There are in New Zealand thousands of men capable of bearing arms, many of them trained, good riders, and good shots ; yet we have in the colony rifles only for one-fourth of their number. Again, there is a large number of men of the Native race who are well capable of bearing arms. In the past we have had a taste of the fighting-qualities of the Maoris, both of those against and those with us ; in fact, had it not been for the " friendlies " the troubles would not have ended so speedily or successfully as they did. All now, I am happy to say, are desirous of upholding the mana of our gracious sovereign, and were pouri (sorrowful) at not being allowed to go with our sons in the contingents to South Africa. The time has long since arrived when we may with confidence trust those of the Native race who enrol themselves in our Volunteer corps, and accept them to form part of the Imperial Reserve Force suggested in this memorandum. More rifles wanted. I consider that, in addition to the '303 rifles now in the colony, to provide Volunteer corps in the South Island, the new corps enrolled and to be enrolled, the men in the Imperial Reserve, and to have a reasonable stock in reserve, 30,000 magazine rifles are required. The cost of same, with freight, &c, added, would be about £120,000. Enrolment refused ; want of capital to equip. In the past, many companies of Volunteers and rifle clubs have offered their services, which have been refused on account of the capital required for arms and equipment not being available. This also applies especially to the want of field batteries and the completion and full equipment of harbour-defences. Classification. Classification of the Forces. The defence forces of the colony should be divided into the following classes—viz., (a) Permanent Artillery, for harbour-defences ; (b) ordinary Volunteer forces; (c) Imperial and Colonial Reserve forces; (d) rifle clubs; and (c) cadet corps. Volunteers. Volunteers past and present. Capitation required. When the present Commander of the Forces took office our Volunteers numbered about 4,200. The number of officers and men now enrolled totals 11,500. There are, in addition, some ninety corps offering their services, which, if accepted, would bring our total Volunteer Force up to over 18,000 officers and men. Most of the corps now offering their services are mounted. We take it for granted that, approximately, half would be mounted and the other half infantry. The present capitation grant for infantry is £2 10s., and for mounted corps £3 10s. The total amount required for capitation would therefore be £54,000 per annum. To this must be added, for accoutrements, water-bottles, haversacks, bandoliers, &c, £1 per head per annum, or £18,000, which would bring the total cost up to £72,000. Training in camp. To have our Volunteers efficient, increased training in camp is essential, and an additional payment may be found advisable. I estimate this at £8,000, bringing the total required to £80,000. We have now an up-to-date field battery, and other batteries have been ordered. The cost of these if manned by Volunteers would be at least £1,000 each, but if manned by Permanent men and provided with horses £12,000 would be required. Shooting-ranges required. To make our Volunteers efficient in shooting ranges are necessary, but with the increasing population of our centres these are difficult to get. In the past there has been a great oversight in this respect, and we find ourselves in the position at the present time of having no suitable range available for the Volunteers in the large centres of population. To make the necessary provision now would entail a cost of £20,000, and when this is done (and the sooner it is done the better) a law should be passed that no person acquiring properties adjacent to or in the vicinity of these ranges should have any claim against the colony. Rifle ranges are as essential to our welfare as railways are, and they should be protected and maintained for all time. Imperial Reserve. Of whom to consist, and condition of service. How reserve formed. Capitation on being efficient. Imperial Government to find capital. Services of men reserved within territorial limits. In respect of the formation of an Imperial Reserve the following shall apply:—lt should be open to all officers and men belonging to the ordinary Volunteer corps to become efficient in both services, and to enlist for, say, three years in the Reserve Forces. The officers and men so enlisting should receive a fixed annual sum on being certificated as efficient, and be required to go into camp at stated periods, for, say, four weeks in each year, the drills and camping as a Volunteer to count as part of the said four weeks. When in camp they should receive a sum amounting to at least half that now given under the Militia Regulations. The Imperial Government should provide the capital required to purchase field batteries, rifles, and equipments of the Force, the colonies paying a sum equal to one-half the interest on the first cost. In respect to all the forces when on service outside the colony the Imperial Government should provide the horses (when in the colony the men to provide their own horses), the payment of capitation and the payment of the forces when in camp in the colony, or on service outside the colony within prescribed limits, to be adjusted between the Imperial authorities and the colonial Governments on a population or other equitable basis. The Reserve forces should be open for service within territorial limits, to be

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agreed upon between the Imperial and the colonial Governments. The pay of the officers and men when on service outside the colonies should not be less than that which is being paid to the Fifth Contingent at present serving in South Africa. Strength of Eeserve estimated at 10,000 men. Cost per annum. Australian reserve 50,000 ; cost, one million per annum. Estimating the strength of our Volunteer corps at 18,000 men, we may reasonably expect that 8,000 of their number will enrol in the Imperial Reserve. This number, together with 2,000 men of the Maori race who would join the Reserve, would bring the number up to 10,000 men. Putting the capitation on those efficient at £5 per capita, the annual cost would be £50.000, to which must be added the pay during the time the men are in camp—say about £50,000 more. Therefore, there would be in this colony 10,000 men available, at an annual cost of £100,000. Taking it for granted that, in like proportion to population, the same number of men would enrol in the Australian colonies and Tasmania, and estimating the population of Australia and Tasmania at 3,500,000, the proportion would be 43,750 men. Added to the 10,000 in this colony, this would produce a Reserve force of 53,750 men, or, in round numbers, an Imperial Reserve of 50,000 men, at an annual cost of £1,000,000. Major-General French indorses scheme. The captious critic may look upon this scheme as chimerical, and I had some doubts myself when, on the 11th May last, in a memorandum to His Excellency the Governor, I first outlined the scheme; but since then Major-General French has expressed the conviction that a force could be formed on the lines indicated, and, seeing that the drilling and training in the camp of the Volunteers would count for that required by the Reserve, there is little doubt that the number estimated by me would be reached. Rifle Clubs. Formation of rifle clubs. In respect of the formation of rifle clubs, a club should consist of not less than twenty or more than forty members; and in localities where Volunteer corps have been formed only ex-Volunteers who have had not less than three years' service should be enrolled. Qualification of members of rifle clubs. In localities where there are no Volunteer corps, rifle clubs may enrol members who have not had Volunteer service. Parades and drills necessary. Members of rifle clubs should, where practicable, attend a prescribed number of drills and parades in the course of the year, the instruction being in respect of handling arms and firingexercise. The Government to supply rifles and ammunition to enrolled members of rifle clubs at cost price. Certificate of efficiency. After one year's enrolment members of rifle clubs shall be tested at target practice, and, on being able to make the minimum number of marks at the prescribed ranges and having attended the prescribed number of drills and parades, they shall be entitled to receive a certificate as being efficient. Free ammunition for practice. For the first year every enrolled member of a rifle club shall receive a free grant of fifty rounds of ammunition, and thereafter to every efficient member of a rifle club there shall be allowed a free grant of one hundred rounds of ammunition to be used at matches or at practice. Free railway passes. Members of rifle clubs also to have concession in the shape of free railway passes when attending rifle-shooting competitions. Cadet Corps. School cadets controlled by Education Board. Bifl.es to be furnished. As has been stated by me in reply to questions, cadet corps should be established. They should be under the control of the Education Boards and the Education Department. A light rifle similar to that used in the Colony of Victoria should be provided for the use of, say, twenty of the elder boys in each school. The total number of boys who are in the Sixth Standard, or have passed it, is, say, 7,500, and the cost of giving one-fourth of them rifles would be £3,750. Ordinary cadet corps. In addition to the school cadet corps there are a number of youths in the colony who are not old enough to join the Volunteer corps, and the formation of these cadet corps and the enrolment of these youths would be of material advantage. The number likely to be enrolled is estimated at 5,000 : the cost of rifles and equipment, estimated at £3 each, would make a total of £15,000. From school cadet to Volunteer. Future maintenance of force of 20,000 efficient Volunteers. The necessity for the establishment and enrolment of these cadet corps any one who has given this subject any consideration must readily admit. You commence to train the boys in the school, after leaving school they enrol in the ordinary cadet corps, and then, when they come of age, they will enrol in Volunteer corps. You take them from the schools and keep them under military training until they attain the Volunteer age. At the present time the lads, from the time they leave school until the time they attain the age at which they could be enrolled in the Volunteer corps, have their ardour damped, as well as their liking for drill; and this has been the means of preventing them from enrolling in the Volunteer forces of the colony. No such thing as conscription

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is at all necessary in this colony, and I am satisfied that if the suggestion now made should be given effect to we would have in the course of a few years fully twenty thousand Volunteers equipped and complete. Naval Reserves. Naval drill on cruisers in port. In respect to the naval branch of the Imperial and Colonial Reserve forces, arrangements should be made for the drilling of our Naval Volunteers, on a certain number of days in each year, tin the cruisers belonging to the Australasian Squadron, these cruisers to be at the several ports in the colonies at times fixed for the purpose. Conversion of Steamers. Conversion of steamers into cruisers. There are many of the merchant steamers coming to the colony which could be converted into cruisers. At present the officers and engineers on those steamers cannot qualify for the Naval Reserve. If they were allowed to have short periods of service on the cruisers when both steamers and cruisers were in port, these officers and engineers would in time qualify for the Naval Reserve. Equipment of Steamers. Equipment for converted steamers. There should be naval guns, equipment, and munitions of war for these colonial steamers convertible into cruisers, to be left at a depot within the colony, to be approved by the Imperial authorities; not necessarily at a port, yet safe from seizure, and within easy reach. Australasian Squadron. Strengthening the Australasian Squadron. Owing to the altered conditions it is necessary that the Australasian Squadron should be strengthened by raising the class of vessels and increasing the number of cruisers, the colonies to pay the increased cost, on the basis of the present agreement. Withdrawal of obsolete cruisers. Several of the cruisers now in the Australasian waters, not being up to date, and not belonging to the squadron, should be withdrawn and replaced by a better and more useful class of cruisers. Military Conference. Suggested military conference. With the developments that have taken place in South Africa the difficulties met with by the Australasian Colonies in enrolling, equipping, and despatching contingents for service outside the colonies point to the fact that a Conference of Imperial officers, Commanders of the Forces, and Defence Ministers would be of great service in working out a scheme such as is here proposed ; and should Field-Marshal Lord Roberts be able to accept the invitation to visit the colonies, he should be invited to preside at such Conference. Failing this, the Imperial authorities should be asked to send one of the British generals who has taken part in the South African campaign to preside at such Conference.

APPENDIX V. (2).

MAJOR-GENERAL FRENCH'S DEFENCE SCHEME (AUSTRALIA'S MOUNTED MEN). Major-General French to the Right Hon. the Premier. Sir,— Sydney, Bth May, 1900. The present war in South Africa has demonstrated the fact that the defence of the British Empire in the future is not a question to be left wholly to the people of the British Isles, but that the English-speaking people throughout the Empire are willing to take their share in its defence, and provide the men, and possibly the money, therefor. Having had an experience of a dozen years in Canada and a similar amount in Australia, mostly with colonial forces, I would like to make two points clear : (1) It is idle to hope or expect that any large force of Imperial troops, paid at Imperial rates, could be raised in these colonies for ordinary garrison work or duties in peace time. (2.) It is equally certain that thousands of men can be raised in war time, who will engage for the war at a fair rate of pay. With regard to the first point, I may mention that the minimum rate of wages for labourers on Government contracts has been fixed at 7s. per diem in this colony, and it is pretty much the same in the other Australian Colonies. This will give some idea of the futility of attempting to carry out this matter. The second point is one of the greatest possible importance to my mind. Few who have not resided in these colonies during the past six months could realise the intense enthusiasm and desire amongst all classes to take part in the war: this colony has sent some 2,700 officers and men, and as many horses, and the difficulty was not in finding the men, but in having to send away the thousands who could not be taken on. The other Australian Colonies had a

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similar experience. At the present moment some three hundred infantry that have been kept in reserve here have offered their services at the Imperial rates of pay rather than not go at all. The real way, in my opinion, to help Old England to keep the flag flying all over the Empire is to-form war reserves in the colonies. In doing so the specialities of the colonies should be borne in mind. Thus Canada, with her 75,000 sailors and fishermen on the Atlantic seaboard, should provide a large war reserve for the fleet, and probably would do so if the Admiralty, instead of framing cast-iron regulations suitable for Great Britain, would appreciate the fact that the most suitable time to carry out the training of these fishermen would be the time of year when they could not carry on their usual avocations. Australia, on the other hand, could do little as a war reserve for the navy, but much for the land forces of all arms, and especially the mounted services. I have little hesitation in saying that the finest material for the light cavalry of the Empire is to be found in these colonies, where the ordinary daily work of the bushman is a constant rehearsal of the work of the cavalry scout. We have sent some 3,500 mounted bushmen to South Africa. There was little time for training or for selection of officers or N.C. officers; but, nevertheless, I am certain that these men will give a good account of themselves. But how much better if they had been trained and properly equipped ? Now, my scheme, as far as Australia is concerned, is as follows : — (a.) A war reserve of, say, 10,000 men, largely mounted men. (b.) This reserve to be formed mainly from efficient officers and men who have passed through the ranks of the defence forces, and who agree to serve within or without Australia in war time. The 6,000 men now in South Africa would give this reserve a good start. (c.) Rates of pay on active service as for the permanent forces of Australia. (d.) A retaining-fee, or reserve pay, of £8 per annum for efficient privates of infantry, £12 per annum for troopers of mounted corps who have horses and saddlery fit for service, other ranks in proportion. (c.) The requirements for efficiency to involve an annual course of training and musketry. (/.) The reserve pay and pay on active service to be paid by the Imperial Government. The approximate comparative cost of 10,000 Australian reserves at £10 per annum would be £100,000; whereas the cost of 10,000 regular British troops at an average of £100 per annum would be £1,000,000, As regards the pay on active service, the colonial Governments are now paying the difference between the Imperial and the colonial rates to their men in South Africa. They might well do so in the future in view of the substantial advantage of having 10,000 trained reserves kept up in Australia in peace time at no expense to them. I may explain that my main reason for asking the publication of these suggestions is with the view of obtaining expressions of opinion from those interested in the defence of the Empire as a whole, and whose opinions carry weight. I had something to do from the military side in framing the Queensland Defence Act in 1884, when Commandant there. In 1894, when serving in India, I had the satisfaction of reading that at a meeting of the Australian commandants it was resolved that a Defence Act for all Australia should be prepared and based on the Queensland Act. I have now been asked to prepare such an Act, and it can readily be imagined what an immense advantage it would be if in the Federal Defence Act for all Australia, which must soon be brought forward, the necessary powers could be taken for the formation of a war reserve of the nature above indicated. An experience of a quarter of a century in the colonies forces me to the conclusion that such a scheme, if feasible, would be mutually advantageous for the colonies and England, and beneficial to the grand Empire in which we live, and for which we ought to do our utmost. Now is the time to act. If we wait till the cold fit comes on progress may be made impossible. I am, &c, G. A. French, Major-General, Commandant New South Wale 3 Military Forces.

APPENDIX V. (3).

MILITARY FORCES OF THE COMMONWEALTH.—MINUTE UPON THE DEFENCE OF AUSTRALIA, BY MAJOR-GENERAL HUTTON, COMMANDANT. Headquarters, Melbourne, 7th April, 1902. (Minute for the consideration of the Right Honourable the Minister of State for Defence.) Sir, — I have the honour to submit the following minute upon the defence of Australia, together with recommendations based thereon :— I.—Strategical Considerations. Importance of sea power. It is, on the one hand, certain that the geographical position of Australia renders it less liable to aggression from any foreign Power than most parts of the Empire ; but it is equally certain, on

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the other hand, that Australian interests outside Australia itself are peculiarly open to foreign interference, and to possible destruction by an enemy in time of war. No expedition, whether despatched from an enemy's base in the Eastern seas or from Europe, could hope to reach its destination until the British navy had been definitely worsted. It has been publicly stated that the maintenance of sea supremacy may be assumed as the determining factor in shaping the whole defensive policy of the Empire. (Duke of Devonshire, President of Council of National Defence, 3rd December, 1896.) As long, therefore, as Australia remains part of the British Empire so long will the inviolability of her shores and the security of her commerce depend in a large measure upon the power of Great Britain to maintain her supremacy at sea. Possible form of attack. Oversea aggression could only be attempted (1) by a raid of two or more cruisers with a small striking force for the purpose of landing; (2) by a large and well-equipped force conveyed in numerous transports and escorted by an enemy's fleet. Attack by large force. The latter attempt may, under existing conditions, be considered difficult in the extreme, more especially in view of the military spirit which animates the inhabitants of Australia. No commander would venture to land small bodies of troops on the shores of this continent, knowing well that it would mean but to court disaster and consequent loss of prestige to the nation attempting it. Any force destined for aggression would have to be of sufficient strength to conquer and hold either an important strategical position or a considerable portion of territory under the certain condition of jeopardizing, if not losing completely, its communications by sea. To enable an enemy to undertake, with any hope of success, such operations on Australian territory a large expeditionary force of all arms, fully equipped, would be required. The small landing force available even from a strong fleet of cruisers would find such a task impossible. Attaok by a raid. Efforts at oversea aggression upon Australian soil will in all probability, therefore, be reduced to raids by an enemy's cruisers based on his defended ports. Such raids might be undertaken to extort an indemnity under threat of bombardment, or to destroy commerce, or to obtain coal. Security of naval bases and of trade centres. General security to life and property from foreign aggression and from domestic violence. It must, however, be remembered that the present prosperity of Australia, and its future commercial development, will largely depend upon its immunity from attack, and the supremacy of the navy must be insured at all costs as the primary element of success. Australia must be prepared not only to protect the naval base of Sydney and to make secure the important strategical positions at King George's Sound and Thursday Island, so as to enable the navy to have all that it needs for free action at sea, but the great trade centres also, such as Sydney, Melbourne, &c, must further be rendered secure. It is practically impossible to undertake the local defence of the numerous bays, rivers, harbours, and estuaries which an enemy might avail himself of as a harbour of refuge or a rendezvous in time of war. This must be left to the general protection afforded by the navy. It is, however, necessary to deny access to all cities, towns, and harbours of commercial importance, and to make it impossible for a hostile expedition to establish itself upon Australian soil. To this end careful arrangements must be made to concentrate on any threatened point as many available field troops as circumstances may render necessary. It is hoped that the contemplated extension of railway communication between South Australia and West Australia may be accomplished at an early date, as without such extension Western Australia is always liable to isolation in time of war. The Commonwealth has undertaken not only to protect each State against invasion, but, on the application of the Executive Government of the State, to protect it from domestic violence (vide Constitution Act, section 119). Complete security for life and capital must therefore be insured not only for the population now existing in Australia against foreign aggression and domestic violence, but that security must be further assured in the eyes of the commercial world beyond its shores. It follows as a matter of vital importance that the security of Australia should be placed beyond doubt, and that the security to capital in this country should be assured in the event of any warlike complications. Vigorous ofienoe is the main principle of defence. The principles governing defence are not, however, limited to those of a purely passive kind. History has shown that the surest and better defence is by a vigorous offence. The successful defence of an island such as Great Britain has in the past been insured by means of warlike operations forced on the enemy, and fought out on other than English soil. During the last hundred and fifty years, five distinct threats of invasion have been made by England's enemies, and in no instance did England remain satisfied with preparations for passive defence only, but effected her object and defeated her enemies by a vigorous and successful offence. The same principle in a very large measure applies to the defence of Australia. Defence of Australian interests. The defence of Australia cannot, moreover, he considered apart from the defence of Australian interests. Australia depends for its commercial success and its future development firstly upon its seaborne trade* ; and secondly upon the existence, maintenance, and extension of fixed and certain

* The exports and imports from oversea countries alone for the year 1900 amounted to £47,816,438 and £43,164,922 respectively, being a total of £90,981,360.

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markets for its produce outside Australian waters. It therefore follows that Australian interests cannot be assured by the defence alone of Australian soil. Defence is the primary duty of every State and of every citizen, yet the defence of Australian interests outside Australian waters is at the present time solely in the hands of the Imperial Government and of the Imperial army and navy. It is hardly consistent with the present development of Australia as a young and vigorous nation to neglect her responsibility for defence outside Australian waters, and in the robust period of her youth thus to rely entirely upon the strong arm of the Mother-country (vide final paragraph of Section VIII. and appendix). Political developments in the East. It must be remembered that the rapid and continuous improvements in steam and telegraph communications have now destroyed the former isolation of Australia, and modern developments in the East have brought the States of the Commonwealth upon the arena of the Old-world strife. The last six years have witnessed a momentous change in the balance of power in the East. The rise of Japan into an armed Power of the first magnitude; the acquisition of Port Arthur by Russia; the occupation of the Philippines, and of Guam (Ladrone Islands) and Tutuila (Samoa) by the United States; and of the remaining Samoan Islands and part of New Guinea by Germany; and the annexation of Madagascar as a colony by France, are facts of the gravest significance to Australian interests. The transformation of the United States into an oversea Power by her acquisition of Porto Rico and the Philippines, the development of Japan, the evolution of China, the opening of a Panama Canal at an early date, and the movement of Russia towards a port in the Indian Ocean with her increasing interest in Persia, all point to the Indian Ocean, the Northern Pacific, and the China Sea as the probable scene of the future struggle for commercial supremacy. Australia cannot in such an eventuality remain unconcerned. It may be assumed, therefore, that Australia will determine not only to defend her own soil, but to take steps also to defend those vast interests beyond her shores upon the maintenance of which her present existence and her future prosperity must so largely depend. Factors determining Australian defence. Two factors, therefore, may be considered as governing the future organization and administration of the military forces of the Commonwealth, namely : — (a.) The defence of Australian soil. (b.) The defence of Australian interests wherever they may be threatened. Garrison force and field force for defence of Australian soil. (a.) For "the defence of Australian soil" there are two essentials, namely, garrison troops (hereafter styled " the Garrison Force") for the protection of certain predetermined strategical centres and places of commercial importance ; and field troops (hereinafter styled " the Field Force ") for those active operations which are, as has been shown, an essential element, in conjunction with the garrison troops, for the defence of such an extended area as Australia. It is not necessary that the troops for garrison duty as a whole should be mobile, but it is absolutely essential that the field troops be not only well trained, carefully organized, and well equipped, but also ready for active operations in the field at the shortest notice. Field forces for defence of Australian interests. (b.) For "the defence of Australian interests wherever they may be threatened" it will be obvious that the first essential is the supremacy which is guaranteed by the Royal navy, and that the second is in the possession of a Field Force capable of undertaking military operations in whatever part of the world it may be desired by Australia to employ them. The Field Force above indicated in (a) could, if necessity arose, be made available for this purpose. 11. Number of Troops available and required, and how provided. Troops now available in Australia. Voluntary military service. It is now proposed to consider, in the first place, the minimum number of troops which will be required to fulfil.the foregoing conditions, and, in the second, how those troops are to be provided. As regards the first, it is only proposed in the present recommendation to deal with the troops which now exist in the six States under voluntary terms of service in accordance with the estimates, 1901-2. The numbers should be taken as the very least which Australia requires for her protection, and may be considered as the peace footing of her future military force. As regards the second, the strong military feeling now prevailing renders compulsory service by conscription unnecessary. A voluntary military service is the pride of all Anglo-Saxon communities, and it is safe to accept the fact that whenever a national emergency occurs a sufficient number of citizens will always be found ready and willing to voluntarily undertake the duty of defence. The liability to serve should, however, always be maintained, so as to establish the principle of the privileged duty and sacred right of every free-born citizen to bear part in the defence of his country. The most essential element, therefore, in the organization of the future is to provide a military system which shall be elastic, capable of expansion, and which shall form a carefully constructed framework into which the fighting-material of the nation can be fitted when the emergency arises. This framework must consist (1) of a carefully considered and thoroughly complete military organization ; (2) of a well-trained, competent, and experienced staff of officers to lead and to administer; and (3) of modern and efficient equipment.

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Troops available in each State. The following Schedule I. gives the number of troops available in each State: —

Schedule I.

Proportion of troops to States on population basis. The following Schedule 11. shows the proportion which each State should possess upon a population basis of the total number now available throughout the Gommonwealth : —

Schedule II.

Garrison Force. Garrison Force. —The troops required for the protection of cities, towns, &c, should consist of troops raised in the localities which they will be called on to defend in war. The existing Volunteer corps should be utilised for this purpose. The existing defence schemes of each State indicate the force which is required for purely defensive purposes, and are taken as a basis for the garrison troops given in Schedule 111., column 1. Field Force. Field Force. —This force requires the highest possible degree of training, the most complete organization, and the latest modern equipment. The troops should be furnished entirely by militia or partially paid troops. The number now available in each State is as given in Schedule 111., column 2.

State. « a3 ni > ,-i cQtd a *, *-* Eh -O *o _ += •BO -S S 3 goo gas Abti: .IERY, |S *o .o ■o 1.2 ■ *H to -i_ © HH ® _! CO Bngii IF.EItB. i CO 2 3 CD a -_ _ _ - h a a a 1 a <D a -a*. s_ *8, Wo JO CO _ P Remarks. a o ■/. I a o _ o Etf: a 3 O 13 S s New South Wales Victoria Queensland South Australia.. Western Australia Tasmania 1,806 1,137 1,194 741 480 369 240 269 154 101 180 94 925 1,156 427 240 121 229 254 75 119 5,733 139 3,459 78 3,069 1,849 1,320 21 2,164 655 217 258 70 88 90 9,732 ' 12 6,452 18 5,180 10 3 four-gun batteries. 3 six-gun batteries. 2 four-gun batteries and one section. 1 battery. 2 four-gun batteries. 2 field, 2 mountain, and 2 siege guns. 1 49 3,001 6 2,190 8 3,016 6 Total 5,727 1,038 3,098 379 357 17,594 1,378 29,571 60 I * Does m it inclui Le civilians pernii *nently e: iploye*.

Male Population between Ages 18-60. Military I 31st Mi Istablishments irch, 1901. Number c above or l Proportioi Populs if Troops lelow the n of Male ition. State. Total Population. Number. Proportion to Total Male Population of Commonwealth. Number. Proportion to Total Military Establishments of Commonwealth. Above. Below. New South Wales Victoria Queensland South Australia Western Australia Tasmania 1,352,509 1,200,851 496,596 362,604 183,178 172,318 375,100 323,200 154,200 98,600 76,000 47,900 0-349 0-301 0-143 0-092 0-071 0-044 9,732 6,452 5,180 3,001 2,190 3,016 0-329 0-218 0-175 0102 0074 0102 938 289 99 1,698 586 2,438 Total 3,768,056 j 1,075,000 1-000 29,571 1-000 3,024 3,024

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Schedule III.

1. A slight increase in the peace establishment of the troops allotted to the Garrison Force in column 1 will be required hereafter. 2. The proportion of the various arms in the Field Force upon the peace establishment now existing in each State as given in column 2 will require some readjustment hereafter, in order to meet the proportion proposed in the war establishments. It will be observed that the proportion of mounted troops to infantry on the proposed war establishment of the Field Force in column 4 is much larger than in the existing peace establishment in column 2. 3. The figures given in column 4, exclusive of the totals, are only approximate, as the exact allotment of each unit to the States has not yet been fixed. 4. It will be seen that the following summary shows, upon a war footing, 44,218 of all arms, with 120 field guns and guns of position, viz.:—

Summary of Schedule III.

Number of troops available for and constitution of Field Force in peace and war. In the first instance, without adding to the existing numbers of the military forces, there will be available as a Field Force upon a peace footing 4,674 mounted troops, 612 field artillery, with 36 guns, and 8,815 infantry, &c, making a total of 14,101. This Force will be increased upon war footing as proposed to 10,458 mounted troops, 2,756 artillery, and 15,534 infantry and others, with 90 field guns and guns of position. I recommend that the Field Force shall be organized into six brigades of light horse and into three brigades of infantry, each complete, with all the necessary departmental troops, and with the latest modern proportion of field artillery. The large proportion of mounted troops to infantry will necessitate a partial reconstruction of infantry into mounted troops. This change is not only consistent with the characteristics of the Australian people, but provides exactly that description of fighting-man which has proved so valuable in South Africa, and which, without doubt, would constitute a most powerful, if not a controlling, factor in any campaign in which Australian troops might be engaged. Necessity for organization in times of peace. Success in modern war, either for defensive or for offensive operations, can only be assured by deliberate, slow organization in times of peace. History and modern events alike testify that armed men only, no matter how brave and no matter how deeply endowed with military qualifications, are powerless to successfully, and for any length of time, oppose an army which has in times of peace been perfected by measured organization, matured by scientific preparation for war, and supplied with the latest military equipment. It will be dangerous in the extreme to rely upon organizing when the emergency arises such troops as may be required for the defensive-offensive operations referred to, and it will be more especially unwise for a country which for some time at least must depend to a great extent for its 7—A. 7.

Colui rrison 3 eace 1 [N 1. Troops Istablii int.) I DOLUMri 'ield Po 'eace E ?ht moc Column 3. _r_ fDeo — _ --H c2=a _ ■£ a __ ea 2.3--S o Colum: Field P. War Ei « 4. >roe. itablis Gai [sting 1 i. ihmi [Existi: witli ■Si Slij ->rco igtal dlfli i. lilisl ::ati< lment, ins.) State. (Exi (Pre iposed int.) 03 o o fa EH T5 <u *-> n P o a 5 3 fl 1- □ l-H fl o -I So fa a o o G Eh «a fl fl o a u fl <__ 3 «3 ft o o H EH a =i o a u < rd +-> o — o .1 1-1 h < fa 0) o CO _ _ "3 o H •rm ■ma m a I_) mi 3 s _ - _ o H Tew South Wales Victoria Queensland iouth Australia .. Vestern Australia 'asmania 225 161 310 112 120 180 845 1,313 476 341 211 259 3,048 1,456 1,678 937 840 1,426 794 263 215 119 34 107 4 10 4 6 4 2 4,912 3,193 2,679 1,509 1,205 1,972 1,609 1,002 884 630 360 189 170 183 105 90 64 2,758 1,989 1,382 834 480 738 283 85 130 28 55 53 10 12 6 4 4 4,820 3,259 2,501 1,492 985 1,044 9,732 6,452 5,180 3,001 2,190 3,016 3,754 3,333 1,378 1,007 508 478 989 879 363 265 134 126 4,3511,225 3,8631,088 1,597 450 1,166 329 589 166 554 156 12,120 3,414 32 29 12 9 4 4 10,319 9,163 3,788 2,767 1,397 1,814 Total 1,108 3,445 9,385 1,532 30 15,470 4,674 612 8,181 634 36 14,101 29,571 10,458 2,756 90 28,748

Arm. Garrison Troops. Field Force. Total. rlounted troops Artillery Infantry )thers 1,108 3,445 9,385 1,532 10,458 2,756 12,120 3,414 11,566 6,201 21,505 4,946 Total 15,470 28,748 44,218

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warlike stores upon a distant land to postpone the provision of the requisite materiel of war until the moment of action arrives. lll.—Organization, Instruction, Training, and Equipment. Reconstruction necessary. A. Organization. —The organization of the troops proposed for allotment to the Garrison Force requires little change. In order, however, to make the Field Force effective very considerable organization and partial reconstruction of some portion of the existing forces available will be necessary. It is, moreover, obvious that all regiments of light horse, batteries of field artillery, and infantry must be made similar in strength, and that the peace and war establishments for all branches of the Force must be fixed. The creation or development of the departments which deal with transport and supply, with equipment, and with the care of sick and wounded, will have to be undertaken. These changes will entail comparatively small expense, and can be effected gradually. Every care should be taken to make the organization capable of expansion, and to base it upon a territorial system. Instruction of officers and of staff. B. Instruction of Officers and Staff. —The first essential of a citizen or militia army must be the training of the officers and staff. The better and more intelligent the troops the better trained and more experienced must be those who lead. A satisfactory standard of knowledge and proficiency can only in peace be effected by instituting Schools of Instruction for militia and Volunteer officers of all branches of the service, and by despatching selected officers to England and to India to attend special courses. Sufficient pay must be allowed as compensation to officers who thus devote their time to their own instruction for the benefit of the State, and a bonus upon passing periodical test examinations should be granted. A system of special instruction for staff officers should be instituted, of which a prominent factor will be " staff rides upon field-service conditions." The'expense of the foregoing need be small in comparison with its importance. School of Instruction. Sydney and Melbourne should form the centres respectively of the system of Schools of Instruction ; the former for the States of New South Wales and Queensland, and the latter for Victoria, Tasmania, South Australia, and Western Australia. Every facility exists in Sydney for the Schools of Instruction, which already exist in a limited form, together with the instructional troops required. A similar system should be created at Melbourne. Schools should also be formed as a part of this system in other centres, and at suitable times, so as to meet the local conditions. Military College. I trust that the establishment of a Military College may at no distant date receive the favourable consideration of the Government. An adaptation of the system of organization and of instruction carried out at West Point, in the United States of America, at the Eoyal Military College of Canada (Kingston, Ontario), and at the great public schools of England, would meet the requirements of such a college in Australia. A college thus created would be likely to give the most valuable results, not only in furnishing a high standard of education in the technical professions of civil life, but in inculcating those principles of military science which were found to produce men possessing such eminent military qualities in the great War of Secession in America, and more recently in the case of the Military College of Canada during the campaign in South Africa. I would recommend that, as part of such a college, there should be a special branch which would undertake the training of Australian officers in staff duties. The personnel of the College, and the instructional arrangements of the same, would be available for this further and more advanced course of military instruction, which is so essential for placing the professional knowledge of the officers of the General Staff in Australia on the requisite high level of military efficiency. Training of the troops. C. Training. —Secondary only to the instruction of officers is the training of the men. This, to be effective, must rather be constant each year than long in duration. Sixteen days per annum for light horse, infantry, and departments, and twenty days for artillery and engineers, should be sufficient if properly and efficiently administered. This training should be carried out in two categories—one for the troops raised in the country districts, which should mainly be for a given period in camps of instruction, at whatever time of the year may be most convenient to the industries followed by the men, and one for the troops raised in the cities and towns, whose employments do not admit of long absence, which should be, as at present, spread over the year by afternoon and evening training, with a short camp of instruction for three or four days at Easter, or during public holidays. Equipment required. D. Equipment. —The existing equipment of the troops to be allotted to the Garrison Force may be deemed sufficient for the purposes of such troops. The equipment, however, which is available for the Field Force leaves much to be desired. There is in all the States a complete absence of any modern infantry equipment, and only a small percentage of magazine rifles are available. The equipment of the mounted troops is equally incomplete, and only a small and

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quite inadequate supply of military saddles is available. The harness, equipment, and guns for field artillery are quite unequal to modern demands. A very small and quite inadequate quantity of field-engineer or field-hospital equipment is available. Camp equipment and blankets are also inadequate. The supply of ammunition is in a very seriously defective condition. It will be obvious, therefore, that a very considerable outlay in equipment is imperative. Troops without efficient and sufficient arms, ammunition, and equipment are useless for the purpose for which they exist, and are therefore a mischievous delusion. The condition of the forces of the six States is very diverse. In some instances arms and equipment are either obsolete or worn out, while in others deficiencies are comparatively small. IV.—Permanent Force. Permanent Force for instructional and specialist services. Any increase of the Eoyal Australian Artillery and of the engineers is not at present necessary. The whole force of permanent troops should be maintained for purposes of instructing the militia or partially paid troops and Volunteers, as well as for supplying the skilled personnel required in connection with the guns, forts, and submarine-mine defences. I have recommended a reconstruction of the former into three four-gun field batteries and into eleven companies of garrison artillery. The field artillery will supply the personnel for the Schools of Instruction of Field Artillery and of Light Horse, and the garrison artillery for the Schools of Instruction of the Garrison Artillery and Infantry. The engineers will supply the personnel for the Schools of Instruction of the Field Engineers, Field Telegraph, and the Submarine Miners. Selection of officers. The officers of the permanent troops should be selected with the utmost care. They must be well educated and capable men, as they will be required in the future to supply Australia with her general staff and instructional staff officers. Every opportunity should be taken of giving the officers of the general staff and of the permanent corps opportunities of study in England and elsewhere and of gaining experience whenever active operations are being undertaken. The greatest pains should similarly be taken, by means of adequate pay and generous treatment, to induce steady, capable, and well-educated men (preferably those who have served with credit in South Africa or China) to enter the ranks of the Permanent Force. The future efficiency of the Commonwealth military forces must in a very large measure be in direct ratio to the quality and the efficiency of its general staff officers and of the officers and the non-commissioned officers of the permanent forces and staff. The administration and the instruction of a citizen army in time of peace must mainly devolve upon the permanent officers and non-commissioned officers, and in time of war a large and responsible share of duty will necessarily fall to their lot. No effort should be spared therefore to make military service in the Permanent Force attractive. It should be made clear that a certain and hopeful future is before all ranks of the permanent officers and men of the military forces of the Commonwealth. A prospect should be held out, by opportunities of advancement and of a fair pecuniary remuneration upon disability for age or failure of health, which should not only satisfy the very proper ambitions of those now serving, but should attract into the service the best educated and most intelligent candidates for vacancies. V.—Eifle Clubs. Rifle clubs : their value. The love of rifle shooting and the existing interest in rifle practice has been materially fostered by the institution of rifle clubs throughout Australia. The organization of rifle clubs might be developed hereafter with great and increasing advantage, as soon as the future military organization has been determined and carried out, and when the exact position which rifle clubs are to hold as an integral part of the defences has been clearly defined. There is, however, a tendency to look on rifle shooting and rifle practice as a pastime rather than as an obligation seriously undertaken as an important element towards the national defence. The encouragement given to rifle clubs, and the financial advantages conferred by Government, should only be continued on the understanding that rifle shooting as practised in Australia is seriously undertaken and is developed upon the latest modern lines, and, further, that the members of the rifle clubs are prepared to undertake in some definite form a direct share in the defence of the country. The rifle clubs at present constituted in some of the States are organized on sound lines, and their members form a reserve to existing military units. In at least one instance, however, rifle clubs form an organization apart, which, without officers, without military instruction, and without a system of military organization, can at best provide only a certain number of partially armed men with an uncertain knowledge of the use of the rifle. The military value of such men as an integral part of the defence forces of Australia can be but small under the existing conditions, and this system requires modification. One general system of organization for the rifle clubs and rifle associations throughout the Commonwealth is necessary. The system of providing a reserve from members of rifle clubs by affiliation to the various military units, which has proved to successfully answer the purpose in some of the States, should be taken as a basis on which to create such an organization. The Eeserve men thus provided will be available to complete the peace establishments alluded to above to the requisite strength of war.

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Vl.—Cadets. A cadet military system exists in most of the States, and in one State has reached a very satisfactory standard of efficiency. I attach great value to the military training thus taught and military discipline thus impressed upon the rising generation, and I recommend that the system which has proved so successful in Victoria, under the Military Department, should be similarly developed throughout the Commonwealth. VII.— Manufacturing Departments. Manufacturing departments. It will be necessary by degrees to create those manufacturing departments which are required to form the arsenal for the future maintenance of the defence forces of the Commonwealth. This arsenal should include: —(1) Storage accommodation for reserve stores; (2) grand magazine; (3) small-arms-ammunition factory (including steel-shell foundry) and cordite-factory; (4) smallarms factory ; (5) gun-foundry. A site for the erection of the above will be required where communication by rail and by sea is easily accessible. It is obvious that a supply of coal and iron must be readily available, and that the site chosen could be satisfactorily and readily protected from any possible attack. It is, moreover, necessary that the arsenal should be so situated as to meet the demands of the Eoyal navy in the present, and of the Australian navy in the future. It should accordingly form part of the naval base of Australia. An eligible site could be found in the vicinity of Sydney, which would fulfil all the above conditions. Formation of Commonwealth arsenal. Although the above arsenal will require time to create, a beginning might be at once made by the selection of an eligible site, and by the removal of the artillery workshops now in Victoria Barracks, Sydney. Accommodation for the large amount of stores and equipment required for the Field Force above alluded to should, moreover, be built as soon as may be. Vlll.—Expenditure. The total sum available under the estimates of 1901-2 should be in the first instance sufficient for the present requirements, exclusive of the supply of equipment, &c. (Section III.). The supply of equipment, arms, &c, which is of a pressing nature, might be defrayed from a loan. An approximate calculation of the immediate requirements has been made, by which the sum of, approximately, £500,000 will be sufficient to render the Garrison Force complete and the Field Force capable of carrying out its functions. A table (Appendix A) will be found at the conclusion of this paper which will be of interest. It shows the amount paid for defence per head of population in Great Britain, her self-governing colonies, and by foreign nations. It will be seen that the self-governing colonies contribute a small proportion only to naval and military defence in comparison with the amount paid by Great Britain and other foreign countries: thus Canada pays Is. 6d. per head of population, Australia 4s. 6d., New Zealand 75., and Great Britain 235. 2d. I have, &c, Edward T. H. Hutton, Major-General, Commanding Military Forces of the Commonwealth of Australia. Melbourne, 7th April, 1902.

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APPENDIX A. Table showing Comparative Cost of Military and Naval Defence in Great Britain, her Self-governing Colonies, and Foreign Nations.

iITAKT. Naval. Defence Expenditube. Percentage of Total Public Ependiture devoted to Military Defence. Country. Establishments. PerBudget. Cost per Head of Population. Cost per Head of ' Population. Per Head of Population. Percentage of Total Taxation devoted to Defence. Remarks. Peace. War. of Troops to Population.* Budget. Total. ( Austria-Hungary CD im I" o en o Belgium CD _ .2 France .. > in I Germany 45,310,835 (31/12/1900) 6,744,532 (31/12/1899) 38,641,333 (1901) 56,345,014 (1/12/1900) 5,103,924 (31/12/1899) 32,045,404 (31/12/1900) 375,291 (1899) 48,294 (1899) 616,475 (1900) 595,536 (1899-1900) 31,949 (1/7/1899) 226,603 1,238,816 (1899) 138,084 (1899) 3,091,350 (1898) 3,218, 684(a) (1899-1900) 86,277 (1/7/1899) 2,294,629(6) 0-828 0-716 1-595 1-057 16,301,320 (1901) 2,113,512 (1899) 27,744,581 (1901) 33,349,072 (1900) 1,882,062 (1900) 10,965,880 (1900-1) s. 7-19 6-27 14-36 11-84 £ 1,411,771 (1901) 13,171,468 (1901) 8,114,900 (1900) 1,329,930 (1900) 4,895,386 (1900-1) 0-62 6-82 2-88 £ 17,713,091 2,113,512 40,916,049 41,463,972 s. 7-81 6-27 21-18 14-72 11-3 19-5 32-4f 18-3 24-8 22-3 (a) Excluding Landstrum, abou 3,000,000. a Holland 0-626 7-37 5-21 3,211,992 12-58 14-6 20-3 I -i Italy .. O 0-707 6-84 3-06 15,861,266 9-90 15-6 20-8 (6) To this may be added the untrained portion of the Territorial Militia, about 1,250,000 men. O oa g« Japan .. 43,760,815 (31/12/1898) 129,000,000 (1900) 157,829(c) (1899) 1,092,444 603,116 (1899) 2,841,962 0-361 3,822,743 (1900-1) 34,615,121 (1901) 1-75 1,794,401 (1900-1) 10,032,018 .(1901) 0-82 5,617,144 2-57 14-6 24-0 (c) Active army. o o Eussia .. 0-847 5-37 1-56 44,647,139 6-93 20-1 39-7 I Armed, 50,440; Unarmed, 225,156. t Switzerland 3,312,551 (1/12/1900) 234,925(d) (1/1/1899) 234,925(6) (1/1/1899) 7-092 1,124,836 (1900) 6-79 1,124,836 6-79 26-6 56-3 „; f United States co _g Great Britain t>> Canada .. _ eS 9 Australia > [New Zealand 76,356,102 (1900) 201,536(e) 0-264 20,954,080(/) (1900) 5-49 11,489,338 (1900) 3-01 32,443,418 8-50 28-2 26-4 (e) 65,000 regulars, 35,000 Volunteers for the Philippines, 101,536 militia. (/) Expenditure in 1901, £31,318,170. (g) Includes Army Reserve, colonial and Indian troops. 40,555,489 (1899) 662,818 (1899-1900) 783,541(o) (1900-1) 1-634 20,617,200 (1899-1900) 10-17 26,594,500 (1899-1900) 1311 47,211,700 23-28 15-0 (1898-9) 5,312,500 (1899) 3,768,056 (1/3/1901) 796,359 (31/12/1899) 37,636 (30/6/1899) 29,571 (1901-2) 10,040 0-708 433,735 (1899) 681,485 (1901) 234,344(i) 1-63 433,735 1-63 3-8 61 0-785 3-6 178,065 0-95 859,550 4-55 2-6{ 6-8 (j) Includes constabulary. 1-261 5-88 3-2 6-2 * Thesi numbers wei •e obtained by lividing ,he peace establ lishment by the populi ,tion. t Empire. { Sti ,te expendi iture inclui led.

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APPENDIX VI.

MEMOEANDUM BY THE CANADIAN MINISTEES CONCEEMNG DEFENCE. The Canadian Ministers regret that they have been unable to assent to the suggestions made by Lord Selborne respecting the navy and by Mr. St. John Brodrick respecting the army. The Ministers desire to point out that their objections arise not so much from the expense involved as from_a belief that the acceptance of the proposals would entail an important departure from the principle of colonial self-government. Canada values highly the measure of local independence which has been granted it from time to time by the Imperial authorities, and which has been so productive of beneficial results, both as respects the material progress of the country and the strengthening of the ties that bind it to the Motherland. But while for these reasons the Canadian Ministers are obliged to withhold their assent to the propositions of the Admiralty and the War Office, they fully appreciate the duty of the Dominion, as it advances in population and wealth, to make more liberal outlay for those necessary preparations of self-defence which every country has to assume and bear. That the taxpayers of the United Kingdom should desire to be relieved of some of the burdens which they bear in connection with military expenditure is quite reasonable. Canada in the development of its own militia system will be found ready to respond to that desire by taking upon itself some of the services in the Dominion which have hitherto been borne by the Imperial Government. What has already been done by Canada must give assurance of the disposition of the Canadian people to recognise their proper obligations. In the early years of the Dominion an understanding was come to between the Imperial and Canadian Governments that Canada should expend about $ 1,000,000 annually on her militia system. From time to time that expenditure lias been voluntarily increased, and at present, apart from the special outlay in connection with the maintenance of the garrison at Halifax, the Dominion is spending about $2,000,000 annually on her militia. The efficiency of the Canadian militia service having been called in question, it may be of interest to note that many improvements have been made during the past few years; notably the organization of an army medical corps and the creation of an army service corps, the strengthening of the headquarters and district staffs, the exercise of greater care in the selection of Permanent Force officers, and the affording of greater facilities for the training of the officers of the active militia. A militia pension law has been enacted for the staff and the Permanent Force. Annual drill in camps of instruction for the rural corps, and at battalion headquarters for city corps, has been carried out each year during the past six years. A school of musketry has been established at Ottawa, with most encouraging results; rifle ranges have been and are being constructed at the public expense at important centres all over the Dominion, and financial aid is being afforded to local corps in smaller places for the same object. Eifle associations, whose members are pledged to military service, if required, are being organized, and their formation encouraged by the loan of rifles and by grants of free ammunition. A reserve of officers has been established, and improvements have also been made in several other important respects. The work done by the Militia Department in sending contingents to South Africa may be fairly cited as proof of reasonable efficiency. Without referring to anything which was done outside the purely Canadian Contingents, it is worthy of mention that the first contingent, under Colonel Otter, composed of 1,000 men drawn from every section of Canada embraced within 4,000 miles of territory lying between the Atlantic and Pacific Oceans, was organized, fully equipped, and embarked witnin a period of fourteen days; and that a second contingent, composed of 1,200 men, composed of field artillery and mounted rifles, was shortly afterwards similarly organized, equipped, and embarked within the space of three weeks. But while thus calling attention to the progress that has already been made by Canada in her militia organization, the Ministers are far from claiming that perfection has been attained. If defects exist, there is every desire on the part of the Canadian Government to remove them, and for this purpose the advice and assistance of experienced Imperial officers will be welcomed and all reasonable efforts made to secure an efficient system. At present Canadian expenditures for defence services are confined to the military side. The Canadian Government are prepared to consider the naval side of defence as well. On the seacoasts oE Canada there is a large number of men admirably qualified to form a Naval Eeserve, and it is hoped that at an early day a system may be devised which will lead to the training of these men ana to the making of their services available for defence in time of need. In conclusion, the Ministers repeat that, while the Canadian Government are obliged to dissent from the measures proposed, they fully appreciate the obligation of the Dominion to make expenditures for the purposes of defence in proportion to the increasing population and wealth of the country. They are willing that these expenditures shall be so directed as to relieve the taxpayer of the Mother-country from some of the burdens which he now bears; and they have the strongest desire to carry out their deience schemes in co-operation with the Imperial authorities, and under the advice of experienced Imperial officers, so far as this is consistent with the principle of local self-government, which has proved so great a factor in the promotion of Imperial unity. London, 11th August, 1902.

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APPENDIX VII.

SUPPLIES OF MEAT, PRODUCE, AND HORSES, REQUIRED BY THE WAR OFFICE AND ADMIRALTY, FROM AUSTRALIA. List of Papers.

No. 1. Governor-General Lord Hopetoun to Mr. Chamberlain. (Eeceived January 27, 1902.) Sir, — Commonwealth of Australia, Melbourne, 19th December, 1901. Adverting to your despatch of the 18th October last, I have now the honour to transmit to you the accompanying copy of a minute which I have received from my Eesponsible Advisers, on the subject of the supplies of meat, produce, and horses, required by the War Office and the Admiralty, from Australia. I have, &c, Hopetoun, Governor-General.

Enclosure in No. 1. Commonwealth of Australia, Department of External Affairs. (Minute for His Excellency the Governor-General.) Mr. Barton presents his humble duty to Your Excellency, and has the honour to acknowledge the receipt of the despatch from the Eight Honourable the Secretary of State for the Colonies, dated the IBth October, 1901, on the subject of the supplies of preserved meat obtained by the Admiralty and War Office, which was transmitted by Your Excellency on the 20th November last. 2. In connection with this despatch, Mr. Barton would be glad if Your Excellency would refer to your despatch (to which it is an answer) requesting that, in case of contracts to be entered into by the Admiralty and the War Office, timely notice should be given to enable tenders to be called in Australia and New Zealand. 3. Mr. Barton observes, with satisfaction, the letter from the War Office in which the Secretary of State for the Colonies is advised that every possible consideration will be given to the wishes of the Governor-General of Australia. It is not, however, stated what steps had been taken, and what changes in the existing methods had been made or were in contemplation, in order to carry out that intention. 4. Mr. Barton regrets to say that there exists throughout the Commonwealth a feeling that our merchants have not received adequate consideration from the authorities in connection with the letting of contracts for supplies required for use in connection with the war in South Africa. 5. Mr. Barton has the honour to enclose, for the information of Your Excellency, a copy of a letter which has been received from a number of firms in Sydney who represent exporting interests. He has received several verbal representations to the same effect as those contained in the letter, and strongly worded articles have appeared in the public Press from time to time drawing attention to what is referred to as the indifference shown by the War Office to the interests of Australian producers. 6. Mr. Barton would be glad if the Secretary of State for the Colonies were asked to request the War Office to supply him with information as to the extent of the purchases of supplies from Australian firms. He would also be obliged if the goods purchased from firms in Australia can be clearly distinguished from those of goods alleged to be Australian, but purchased from firms in South Africa and elsewhere, as it has been publicly stated that goods have been supplied to the War Office authorities in South Africa which were represented as Australian, but which, as a fact, were not the produce of this country. 7. It is further represented to Mr. Barton that if tenders for supplies as required could be called in Australia, that system would lead to a great saving in the amounts to be paid by the War Office. The large profits said to have been made by business trading firms in South Africa, in connection with the supply of Australian meat, have been freely commented upon in mercantile

Document. Date. 1. Governor-General Lord Hopetoun to Mr. Chamberlain 2. To War Office and Admiralty 3. Admiralty 4. List of Australian Firms accepted for Navy Meat Contracts during the three vears 1898-1900 5. War Office 6. To War Office 7. War Office No. 140.—December 19, 1901. ceived January 27, 1902.). January 31, 1902. May 18, 1902. (Re(Eeceived May 27, 1902). June 11, 1902. June 20, 1902.

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circles and in the public Press. It is represented that huge profits have been made—profits far in excess of any legitimate reward of the capital, labour, and enterprise invested in the industry. It is stated that if business had been carried on direct between Australian producers and the War Office much more economical terms could have been arranged, and large sums of money thus saved by the Imperial authorities. 8. Mr. Barton has reason to believe that a communication has been addressed to Lord Kitchener, drawing attention to the fact that the prices paid by the American army authorities in the Philippine Islands for supplies of Australian meat are very much below those which have been paid by the Imperial authorities in South Africa for supplies of similar commodities, and this although the circumstances of the respective situations have been largely similar. 9. In a letter recently received from a responsible firm in this community it is stated that an offer could be made to supply, monthly, 2,000 tons of frozen beef, mutton, lamb, &c, ex storeship at Durban or Cape Town, at a price of 6|d. per pound all round. It has been announced that the firm in South Africa who have supplied large quantities of frozen meat for the use of the army there have been receiving 9id. per pound for mutton, so it is clear that the price quoted woul.i represent a substantial reduction and consequent saving to the War Office. 10. Mr. Barton would, therefore, strongly urge that the foregoing statements be taken into consideration by the Imperial authorities, and ventures to express a hope that the result of such consideration may be a wider distribution of contracts and a more direct and economical method of business trading. 11. Mr. Barton desires to invite attention also to the question of supply of horses for use in the South African war. Paragraphs frequently appear in the public Press notifying that large shipments of horses have been made from America, Eussia, and other countries to South Africa. These paragraphs excite comment and cause inquiries to be made as to why the number drawn from this country is, comparatively, so small. Mr. Barton has received a communication on this subject from a responsible firm which states that an offer was made through the Premier of Queensland some time ago to supply 600 horses per month for six months, and so far the offer has not been acknowledged, and is resultless. It is represented that the reason for this is not one connected with the price, as the price of the horses has not even been discussed between the syndicate responsible for the offer and the War Office. Mr. Barton is informed that the difficulty in the way is with respect to the form of contract proDOsed. The tenderers desire that the contract should be c.i.f., but the W 7 ar Office authorities insist that all business connected with the shipment of Australian horses to South Africa must be done f.o.b. 12. Mr. Barton will be glad if it can be represented to the War Office that, in the opinion of Ministers, the c.i.f. form of contract would produce more satisfactory results both to Australian merchants and to the War Office. The multiplication of contracts entailed by the f.o.b. system cannot be conducive to economy, and, further, the employment of the c.i.f. method would lead to the business being carried out by shipowners employed in the regular trade between Australia and South Africa, and whose vessels have been built and fitted expressly for such trade. 13. Ministers are desirous of encouraging by every means in their power the increase in the number of regular traders between Great Britain, South Africa, and Australia. It will be of great advantage if encouragement can be afforded to such companies, in preference to having business done by occasional tramp steamers belonging to firms which have no settled interest in the Australian trade. 14. In connection with this question of the respective merits of the two forms of contract, Mr. Barton suggests that a reference be made to Colonel Hunt, who has been for some time in the Commonwealth employed on duties in connection with the Bemount Department of the army in South Africa. That gentleman has been long enough in Australia to become fully acquainted with her conditions of trade, and he is consequently able to speak with authority as to the respective advantages for the Imperial authorities of the two methods of contract under review. 15. Mr. Barton is pleased to observe from the much fuller information afforded by the Admiralty that considerable portions of supplies required for the navy are being purchased in Australian markets. He notes, however, that invitations to tender for preserved canned meat for the navy generally are apparently issued only to Australian firms who have accredited agents in Great Britain. If that practice could be altered, so as to arrange that when invitations to tender for supplies were issued in England similar invitations might at the same time be publicly announced in the Press of the leading cities of the Commonwealth, Mr. Barton thinks that the obtaining of suitable supplies would be greatly facilitated. 16. Mr. Barton trusts that the experience of the Admiralty in connection with the supplies of Australian and New Zealand salt pork, and salt beef, delivered in Sydney for the use of His Majesty's ships on the Australian, East Indian, and China Stations is sufficiently satisfactory to induce them to widen the area which Australian merchants can supply. He believes that if such a course is followed much general good feeling will be created in Australia, and complete satisfaction afforded to the Admiralty and to the consumers of the goods in question. Mr. Barton will be pleased if early consideration could be given to the subjects dealt with in this minute. Melbourne, 16th December, 1901. Edmund Barton. Sir,— Sydney, 28th November, 1901. We, the undersigned, producers and exporters of New South Wales, beg to draw your attention to the fact that we do not consider the War Office are drawing a fair quantity of the supplies required for the use of the army in South Africa from Australia. We think

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it will be very instructive if you can secure the figures of the War Office and Admiralty purchases from Australian firms in connection with frozen meat, beef, jams, butter, oats, flour, bran, and horses. -We would respectfully request that you cable Mr. Chamberlain, notifying him of the considerable dissatisfaction existing in the colonies on this account and suggesting that you be givenparticulars of all requirements, the same to be notified here, tenders obtained, the price to be given by telegraph direct to the War Office. This is the only way the business can be conducted on its merits, and by direct dealings with the Australian houses the difference between the figures obtained by the latter from South African houses, as compared with the prices paid by the Imperial Government, will at once become apparent. The advantage to the War Office in dealing direct, as far as frozen meat is concerned, with the producers here has been already pointed out, and the same remarks would apply in the case of other lines if notification were made here and time allowed for submitting offers. Yours, &c, Meat Preservers. (For the Eosewater Packing Company (Limited) ) J. Eoberts, Director. Flour Merchants. Bkunton and Co. Food Merchants (For and on behalf of Parsons Bros, and Co. Prop. (Limited) ) E. F. Parsons, Director. Grain Merchants. John Bridge and Co. Flour Merchants. Gillespie Bros, and Co. Produce Merchants. H. Prescott and Co. Meat and Produce Exporters. Birt and Co. (Limited) (E. C. Beckett, Secretary). The Eight Hon. Edmund Barton, P.C., &c, Melbourne.

No. 2. Colonial Office to War Office and Admiralty. Sir, — Downing Street, 31st January, 1902. With reference to your letter of the 13th January, I am directed by Mr. Secretary Chamberlain to transmit to you, for the consideration of \,, T -, n ' . . ' ~, .-, ~. \ J ' I the Lords Commissioners of the Admiralty | copy of a despatch from the Governor-General of Australia, enclosing a copy of a minute from his Ministers on the subject of the supplies of meat, produce, and horses required by the army and navy. 2. It will be observed that Mr. Barton desires that early consideration should be given to the questions dealt with in this minute. 3. A similar letter has been addressed to thej m offi 1 am, &c, Fred. Graham.

No. 3. Admiralty to Colonial Office. Sir,— Admiralty, S.W , 13th May, 1902. With reference to your letter of 31st January last, I am commanded by my Lords Commissioners of the Admiralty to acquaint you, for the information of the Secretary of State for the Colonies, that they have given their careful consideration to the despatch from the GovernorGeneral of Australia, with accompanying minute from his Ministers, on the subject of the supplies of meat, produce, &c, required for the navy and army. My Lords desire me in the first place to reiterate the statement already made that they are fully alive to the advisability of developing, so far as possible, business relations with colonial producers, and they have encouraged, and will continue to encourage, such relations by placing orders with colonial firms whenever it is possible to do so consistently with due regard to quality and economy. As regards the several points raised in Mr. Barton's minute, it will be most convenient to deal with them paragraph by paragraph, premising that it is with the supply of Australian meat that the Admiralty is chiefly concerned. Paragraphs 2, 7, and 15. —In respect of the suggestion that timely notice should be given of forthcoming contracts so as to enable tenders to be called in Australia, I am to observe that tender-forms for canned meats are issued to the English agents of Australian packers, and it is understood that most, if not all, the leading Australian packers are represented in this country. These packers are kept acquainted by their agents with the Admiralty specification, and a price is arranged between the agent and the principal by telegraph, if necessary, and the tender form lodged by the English agent. The Admiralty only purchases meat of approved brands which have previously been tried and found satisfactory, and the meat is supplied under a two-years' guarantee that all tins condemned during that period are replaced free of charge. To advertise in Australia, as proposed, would entail delay and possibly result in offers being made of brands either unsuitable for Admiralty requirements or of a quality unknown to the Department. B—A. 7.

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As a matter of fact, however, my Lords did cause notice of the preserved-meat contract to be given by letter of 13th January last, in which they requested that intimation of the anticipated requirements of preserved meats for navy use might be communicated to the principal colonial Governments, so that packers who were not already on the Admiralty list, and were desirous and capable of quoting, might make application, submit samples of their brands, and name agents in this country. Paragraphs 3 to 12 relate chiefly to the War Department, but 7 has previously been touched on, and I am to observe with regard to paragraph 6 that this Department has already furnished to the Colonial Office a list of the Australian firms* accepted for meat contracts during three years past, together with a comparative statement of the quantities of preserved meats purchased from Australia and America during the same periodt. As regards the statement alluded to by Mr. Barton that goods purporting to be of Australian origin, which were not in fact produced in that country, had been supplied to the War Office authorities in South Africa, it may be observed that the departmental rule of dealing direct with manufacturers and producers, or, when they live out of the United Kingdom, with their sole agents, renders it very improbable that any goods bought by the Admiralty as Australian are not really the produce of that country. Paragraph 13. —0f the eight steamers engaged for the conveyance of horses from Australia and New Zealand to the Cape since the Admiralty undertook the work in March, 1901, sixjhave belonged to regular Australasian lines, and the other two are vessels specially built for the work, which have already carried horses for the Government with marked success, and were tendered at much lower rates. Paragraph 14 relates to the War Department. Paragraph 15 has already been discussed, but my Lords would add that they will be very pleased to learn from the Commonwealth Government of the names of any first-rate packers of tinned meats in Australasia who are desirous of being included in the Admiralty List. Paragraph 16. —Apart from the quantities of Australian preserved meat purchased in this country, large quantities of preserved meat, as well as of salt pork and salt beef, are obtained locally at Sydney for the Australian, China, Cape, and East Indian Stations. My Lords will be glad, if it should hereafter be found possible, as suggested by Mr. Barton, to widen the area of supply of Australian salt beef and pork. The quantities of salt beef and pork stocked at the Eoyal "Victoria Victualling Yard at Deptford are at present chiefly obtained, the beef from the United States and the pork from Ireland and Denmark. If Australian cask meat can be put on the Home market of a suitable quality after its journey through the tropics, and at reasonable prices, the Admiralty will be glad to give it a trial. At present, however, my Lords are advised that Australian salt meat in casks has not been satisfactorily placed on the Home market. In conclusion, I am to request that an assurance may be conveyed to the Commonwealth Government that their Lordships will at all times be pleased to be furnished with particulars of any Australian or New Zealand manufacturers or producers who may be able and willing to quote for the supply of stores used in the Eoyal navy, and that any applications from such firms will receive their Lordships' most favourable consideration. I am, &c, Evan Macgregor.

No. 4. List of Australian Firms accepted for Navy Meat Contracts during the Three Years 1898-1900.

No. 5. War Office to Colonial Office. (Received 27th May, 1902. Sir,— War Office, London, S.W., May, 1902. I am directed by the Secretary of State for War to acknowledge the receipt of your letter of the 31st January last, enclosing copies of a despatch from the Governor-General of Australia,

* See No. 4. t The quantities are as follows: Australian tinned meats, 2,241,7501b. ; American tinned meats, 400 0001b. the American meats including a considerable quantity especially purchased without competition at the outset of the South African War, immediate delivery having been of importance at the time.

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1898. 1899. 1900. 'reserved beef Australian Meat ComAustralian Meat ComAustralian Meat Company. Ellis Bedford. Sydney Meat-preserv-ing Company. E. and W. Davidson ... pany. pany. 'reserved mutton ... Sydney Meat-preserv-ing Company. Warrington Laing. Queensland Meat Export Company. Clarencetown Curing Company. Sydney Meat - preserving Company. lorned beef ialt beef at Sydney... Queensland Meat Export Company. Clarencetown Curing Company. ialt pork at Sydney... Clarencetown CuringCompany.

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and of a minute from his Ministers, on the subject of the supplies of meat, produce, and horses required by the army and navy. The subject is of importance, and has received full and prolonged consideration ; nor need Mr. Brodrick add that it has been approached with every desire to give effect to the legitimate wishes of the Australian Ministers. But, at the same time, the Ministers will understand that, with the great expenditure which the Home Government has to meet, especially at the present moment, economy in so far as it can be combined with efficiency must be his first consideration. In final resort the British taxpayer's claims must be paramount. Looking at the matter from this double point of view— i.e., the desire to foster trade with the colony, and the necessity for safeguarding the interests of the Mother-country —I am to make the following observations on the minute enclosed in your letter. For purposes of explanation it may be desirable to take the paragraphs of the minute seriatim : — Paragraphs 1 and 2. —The first paragraph needs no comment. With regard to the second, in which Mr. Barton emphasizes a request that, when contracts are to be entered into, " timely notice" may " be given to enable tenders to be called in Australia and New Zealand," Mr. Brodrick does not know whether any particular contract is alluded to. In the case of the recent large South African contract for meat timely notice was given, and similar notice will also be given when frozen meat is required at other important stations, such as Malta and Gibraltar, whenever fresh tenders are invited. As regards canned meats the colonial firms have agents in Great Britain and tender through them, nor after the fullest consideration does the Secretary of State see his way to making other arrangements. Paragraph 3. —An advantage has recently been given to the colonies by authorising the issue of frozen mutton twice a week, instead of once, to troops at Home stations. Paragraphs 4, 5, and 6. —Mr. Brodrick greatly regrets that there should be any feeling in the Commonwealth that Australian merchants have not received adequate consideration in connection with contracts for supplies in South Africa. He cannot but think that any such feeling is founded on a misconception as to the amount of the supplies actually obtained from Australian sources. With regard to this, Mr. Brodrick can, if it be so desired, give a list of the total orders given by the War Office to the colonies ; but in view of the exigencies of active service it would be quite impossible to call upon the supply officers in South Africa, whose energies are taxed to the utmost, to furnish lists of local purchases, distinguishing Australian from other goods. It is very doubtful whether the data on which lists of the kind would be based, and without which no reliable result could be attained, have in all cases been recorded. Paragraphs 7 and 10. —Mr. Brodrick regrets that he cannot accept the contention that if tenders were invited in Australia great savings would result. Experience has rather shown that where it is announced that the Imperial Government intends to purchase in the colony the traders harden their prices. With regard to the contract for the supply of meat to the troops in the early part of the war, it has to be borne in mind that the Australian firms did not, so far as can be ascertained, possess the organization or other facilities indispensable for dealing efficiently, and at short notice, with the quantities required to be delivered to troops disseminated over vast districts in a hostile country. Immediate action, and action on a very large scale, was imperative. Paragraphs 8 and 10. —Mr. Brodrick has no knowledge of the communication believed to have been addressed to Lord Kitchener as to the relative cost of supplies to the army of the United States in the Philippine Islands and to tbe army in South Africa. It may, however, be remarked that the conditions both of supply and distribution differ widely, and no fair comparison can be made. Paragraphs 9 and 10. —Mr. Brodrick would always be glad to consider any proposals of the kind. But it is to be observed that the offer at the price quoted —6-Jd. per pound of frozen meat, ex storeship—would not be advantageous. Under the contract now expiring 7d. per pound was paid for frozen meat distributed throughout South Africa, and under the new contract the price per pound, again so distributed, will be under s|d. Paragraph 11. —It is greatly regretted that there should be any feeling that the offer of horses was not fully considered. Such was not the case; the matter was considered, but the responsible officer did not recommend the purchase of the horses here in question. Apart from this, upwards of 22,500 horses have been obtained from Australia to the end of January last. Paragraphs 12, 13, and 14. —The c.i.f. shipments— i.e., shipments at a cost covering the cost of horses, insurance, and freight—were not abandoned without trial. Shipments on these conditions were recommended at one time by Colonel Hunt, but the complaints from South Africa were so numerous that they had to be abandoned in favour of the f.o.b.—i.e., free on board—shipments. The suggestion in paragraph 13 as to the employment of "regular traders " rather than " occasional tramp steamers " will be referred to the Transport Department of the Admiralty, which manages such matters for the War Office. Paragraphs 15 and 16. —These mainly affect the Admiralty. It may be noted, however, that very considerable portions of the supplies required by the army in South Africa have been obtained from Australia. In conclusion, I am to repeat that Mr. Secretary Brodrick has every desire to encourage Australian produce so far as he can do so legitimately, and with due regard to the interests of the British taxpayer, and that he will always be ready to give full, and indeed sympathetic, consideration to any suggestion that may be made with a view to increasing the volume of army supplies to be obtained from Australian sources. He will be glad, whenever an occasion arises, of consulting the Ministers as to the best way of carrying these wishes into effect. I am, oic, E. W. D. Ward.

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No. 6. Colonial Office to War Office. Sir, — Downing Street, 11th June, 1902. I am directed by Mr. Secretary Chamberlain to acknowledge the receipt of your letter* on the subject of obtaining supplies for the army from Australia. 2. Mr. Chamberlain will not fail to communicate a copy of your letter to the GovernorGeneral of Australia, for the information of his Ministers, but, before doing so, he would be much obliged if he could be furnished with the approximate total of the amount of meat, grain, and horses obtained from Australia and New Zealand and Canada during the war. If Mr. Brodrick considers that such a return cannot be supplied, Mr. Chamberlain would be glad to receive a list of the orders given by the War Office to the Australian Colonies and Canada during the last two years. I am. etc., 11. Bertram Cox.

No. 7. War Office to Colonial Office. (Eeceived June 20, 1902.) Sir,— War Office, London, S.W., 20th June, 1902. In further reference to your letter of the 11th instantt, I am directed by the Secretary of State for War to forward, for the information of Mr. Seicretary Chamberlain, the following approximate totals of the amounts of meat, grain, and horses obtained from Australia, New Zealand, and Canada during the war, viz. : —

I am, &c, G. Fleetwood Wilson.

APPENDIX VIII.

EFFECT OF THE CANADIAN PREFEEENTIAL TARIFF ON TRADE BETWEEN THE UNITED KINGDOM AND CANADA. 1. From 23rd April, 1897, a reduction of one-eighth of the Customs duty was granted by Canada to goods (with certain exceptions, including alcoholic liquors, liquid medicines containing alcohol, and tobacco) produced by and imported direct from countries whose Customs treatment of Canadian produce was on the whole as favourable as that accorded by the Canadian Customs tariff to the produce of those countries. From Ist July, 1898, the preference was increased to onefourth. 2. From Ist August, 1898, the preference was confined to goods produced in and imported direct from the United Kingdom and British colonies and possessions. At present the colonies and possessions sharing the preference are India, Straits Settlements, Ceylon, New South Wales, Bermuda, British Guiana, West Indies. 3. From Ist July, 1900, the preferential reduction of duties was increased from one-quarter to one-third. 4. In order to show the principal facts relating to the growth of Canadian trade since the introduction of the preferential tariff both with countries and in articles to which preference is, and is not, accorded, respectively, the following statements are appended : — (i.) A statement showing for each financial year from 1896-97 to 1900-1 the imports into Canada from the United Kingdom, British colonies and possessions, and foreign countries, classified under the three categories of— (a.) Goods dutiable under the general tariff. (b.) Goods dutiable under the reduced " preferential" tariff. (c.) Free goods. So far as the first year, 1896-97, is concerned, the division between (a) and (b) is an approximate estimate only, the goods placed under heading (a) being those of a class to which the preferential tariff, when enacted, did not apply, together with an estimated allowance for the dutiable goods imported from the United Kingdom which were not the produce of the United Kingdom, and hence not entitled to preference, (ii.) A statement showing for each of the sixteen years 1885-86 to 1900-1 the value of the import and export trade between Canada and each of the principal countries.

* No. 5. f No. 6.

Supply. Australia. New Zealand. Canada. Preserved meat Hay ... . Oats Horses 28,000,000.1b. 196,800 tons. 404,000 tons. 21,458 | 1,422 1,700,0001b. 205,000 tons. 17,000 tons. 13,612

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(iii.) A detailed statement showing for each of the five years 1896-97 to 1900-1 the value of the principal articles imported into Canada from the United Kingdom, United States, and each of the other principal countries, (iv.) A summary statement showing for the same five years the value of exports from Canada of the principal classes of goods to the United Kingdom, the United States, and other countries respectively, (v.) A statement showing the rates of duty leviable, under the Canadian general and preferential tariffs respectively, on the principal articles imported into Canada from the United Kingdom at the present time. It should be added that the imports shown in these tables and dealt with in this memorandum are in all cases imports for home consumption. 5. Before discussing the facts shown in these statements it should be observed generally that the period which has elapsed since the first application of the preferential tariff has not been long enough to enable any certain inferences to be drawn as to its effect in encouraging or diverting trade, especially as the period has been an abnormal one, marked by great general revival of trade throughout the world, accompanied by large oscillations of prices of some of the principal articles which figure in the Canadian import and export tables —notably coal, iron and steel, and corn. There has also been a rapid growth of gold-production in the north-west of Canada (practically the whole of which, so far as it is exported, goes to the United States). Disturbing influences such as these very greatly impair the validity of direct comparisons between the growth of the value of the trade of Canada with different countries in the period under review, and it is important that due allowance should be made for them in drawing inferences from the figures. 6. It is to be noted in the first place that a comparison, either between total values or rates of growth of the Canadian imports subject to the lower and higher tariffs respectively, or of the imports derived from the United Kingdom and foreign countries, fails to disclose any marked effect of the preferential tariff in stimulating trade between the British Empire and Canada. 7. Thus the total annual imports into Canada have grown roughly by fourteen and a half millions in the five years 1896-97 to 1900-1. Of this total growth six and a quarter millions are accounted for by goods still subject to the general tariff (i.e., goods from countries not entitled to preferential treatment, or of a class excluded from the benefit of that tariff), and six and a quarter millions by free goods ; while goods admitted under the preferential tariff* have grown by two millions sterling. 8. Nor are the conclusions altered if we consider the rate rather than the total of increase. Thus imports of all kinds have increased by over 62 per cent, in value, "general tariff" goods by about 62 per cent., free goods 67 per cent., and "preferential tariff goods " under 55 per cent. 9. If in place of comparing these three classes of imports we compare the growth of imports from the British Empire with that of imports from foreign countries, we find that the former have increased by three millions and the latter by eleven millions, the rates of growth being 48 per cent, and 69 per cent, respectively. The imports from the United Kingdom only have increased about tw 7 o and three-quarter millions sterling (or 46 per cent.), while those from British possessions have risen by £323,000 or 70 per cent.; the total volume of trade, however, in the latter case being comparatively small. 10. Finally, if we dissect the increase in imports from the United Kingdom, we find that about £700,000 is accounted for by the increase of imports still subject to the general tariff; £436,000 represents the increase of free goods ; while the increase of imports of goods affected by the preferential tariff is rather more than one and a half millions. (Of the increase of goods subject to the general tariff a small proportion is accounted for by British spirits, tobacco, and drugs, but the great bulk by indirect imports of goods other than United Kingdom produce.) 11. We may looK at the figures in another way — i.e., by comparing the percentages of the total import trade of Canada which came from the United Kingdom before and after the introduction of the preferential tariff respectively. The result is to show that the continuous decrease which has been taking place in recent years in the proportion of imports from the United Kingdom into Canada has not been arrested by the operation of the tariff. The percentage proportion in the year 1900-1 (during which the preference of one-third was in force) was 23-|. In the three preceding years, 1897-98 to 1899-1900 (during which there was a preference of one-eighth to 30th June, 1898, then one-fourth), the percentage was 24-J-. The decline in previous successive triennial periods is shown in the following table : — Years endine Percentage of Canadian loth June- Imports from the United Kingdom. 1886-88) Bf ( 40* 1889-91 k ~• , 38 1892-94 Pre * ere £ tlal 35 1895-97) ( ... ... ... ... ... ... 28| 1898-1900 ... ... ... ... ... ... ... 24| 1901 ... ... ... ... ... ... ... ... 23| 12. The above figures show that any reasoning founded on an examination of the total values of goods of all classes, whether raw or manufactured, heavy or light, imported into Canada is likely to lead to the conclusion that the preferential tariff has had little or no effect in encouraging

* i.e. (for 1896-97), goods to which the British preferential tariff subsequently applied.

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British trade. But here it is necessary to bear in mind the qualifications referred to at the beginning of the memorandum, such as the disturbing influence exercised on the figures by recent fluctuations of prices in raw and semi-manufactured goods— e.g., coal and iron, which come chiefly from the United States, and have greatly risen in value in the last two or three years of the series. 13. We should not expect to find any material effect exerted by the preferential tariff in the case of heavy and bulky goods in which freight bears a high proportion to total value, and it is precisely in these classes of goods in which the main increase of Canadian imports has recently taken place. It is also in these classes of goods, e.g., coal, grain, raw cotton, timber, iron and steel, and heavy manufactures thereof, such as bridges, girders, rails, engines, &c, that the United States, by geographical contiguity as well as by wealth of natural resources, is to a large extent beyond reach of any competition from the United Kingdom in the Canadian market, even if aided by a much greater preference than that now accorded. !|: 14. The following figures show to what a great extent the recent expansion of Canadian import trade is accounted for by goods of this kind, and also the large share of these imports which are derived from the United States.

From this table it will be seen that the above groups of articles account for nearly eight millions of the 14* millions by which the total Canadian imports have increased between 1896-97 and 1900-1, and for seven millions out of the ten millions by which the imports from the United States have increased. 15. It must also be remembered in considering the figures that Canadian policy remains protectionist in spite of the preference to British goods, and that the Canadian tariff as a rule discourages the importation of manufactured goods more than that of raw materials. Although, therefore, British goods enjoy a preference compared with the same goods imported from other countries, the average ad valorem rate of duty on British imports taken as a whole is still higher than the average duty levied on all imports, and much higher than the average duty levied on imports from the United States. The following figures for 1900-1 bring out this fact: —

Of course, if dutiable articles only be considered, the above figures are materially altered, the ad valorem equivalents being for imports from United Kingdom 25, for those from United States 25, and for all imports of dutiable articles 27-J. Over half the imports from United States into Canada are free of duty. 16. In these circumstances we should not expect to find that the total imports from this country, consisting as they do largely of manufactured articles subject to high protective duties (albeit these duties are less by one-third than the duties on similar articles imported from foreign countries) would expand so fast as the total imports from foreign countries, and especially

* For example, the preference in the ease of bituminous coal would only amount to about lOd. per ton, and in the case of pig-iron to less than 4s. per ton, both small amounts compared with cost of freight.

Impori for onu Jonsump Jon nal le am 'ree OOl Articles. From all Souri 1896-97. 1900-1. les. From United States. Increase. 1896-97. 1900-1. Increase. 'ron and steel, and manufactures thereof )ther metals, and manufactures thereof 3oal and coke... Jrainand breadstuffs ... tleat, dairy produce, and fruit iVood, and manufactures thereof... _aw cotton $000. 10,749 fooo. 27,180 §000. 16,431 $000. 7,687 fooo. 23,111 $000. 15,424 4,025 6,921 2,896 2,369 4,046 1,677 9,277 1,896 2,975 3,000 3,118 13,836 8,070 6,219 4,937 4,774 4,559 6,174 3,244 1,937 1,656 9,139 1,637 2,044 2,845 3,098 13,695 7,433 4,691 4,710 4,732 4,556 5,796 2,647 1,865 1,634 Dotal of above classes of j $000 articles { £000 35,040 7,200 71,937 14,782 36,897 7,582 28,819 5,922 62,418 12,826 33,599 6,904

Value of Imports. lustoms Duty collected. Ad valorem Equivalent. mports from United Kingdom „ United States -11 imports £ 8,839,000 22,702,000 37,241,000 £ 1,612,000 2,735,000 5,981,000 Per Cent. 18 12 16

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from the United States, which consist to a much greater extent of free, or lightly taxed, raw materials and semi-manufactured articles. If, then, we would determine how far the preferential tariff has benefited British trade, we should turn from comparisons of total trade and examine the statistics of imports into Canada of particular groups of manufactured articles, selecting those whose value is fairly high compared with their weight, and in which the preference accorded by the tariff to British goods amounts to a substantial advantage. Such articles are textile fabrics and yarns, which formed last year over two-thirds of the total British exports to Canada subject to the preferential tariff, viz., over three millions and a half out of £5,323,000. 17. The following table shows for the years ending 30th June, 1893, 1897, and 1901, the value of imports of the principal textile manufactures and yarns subject to duty from the United Kingdom and from all countries respectively. It will be remembered that the year ending June, 1897, was the last year before the preferential tariff, and, indeed, included two months during which the reduction of one-eighth under the first " reciprocal " tariff was in force : —

18. An examination of this table shows that the value of imports of textiles into Canada greatly diminished in the period immediately preceding the adoption of the preferential tariff, the decrease being partly due to the fall of prices in those years of depressed trade, and partly to a diminution in the volume of trade. The proportionate diminution between 1892-93 and 1896-97 was 27 per cent. Since that year, with the revival of trade and the increase of prices, the value of the total imports of textiles has risen no less than 5'7-J per cent. 19. In the case of British textiles the drop between 1892-93 and 1896-97 was sharper, amounting to no less than 36 per cent. The recovery since 1896-97 has been at about the same rate as that stated above for the imports from all sources— i.e., 57 per cent. 20. If, then, we considered merely the growth of imports of textiles and yarns since 1896-97, there would not be much to indicate that the preferential tariff had stimulated British trade. If, however, the greater rate of decline of British trade during the previous years be taken into account it may fairly be argued that the operation of the tariff has done something to check the relative decline of imports from the United Kingdom. Thus these textile and yarn imports which formed 84-| per cent, of the imports from all sources in 1892-93 had fallen to 74-J per cent, in 1896-97. In 1900-1 the proportion was 75 per cent. Thus under the preferential tariff the proportion remained constant after a previous decline. 21. It may be added that in all the chief branches of textiles Great Britain is very far ahead of any other country as regards imports into Canada, and the only branch in which this lead has been diminished in recent years is silk goods, in which there has been considerable competition from France, Japan, and to a smaller extent from Germany. Thus in 1892-93 our share of this trade was about 81 per cent. By 1896-97 it had fallen to 70 per cent., and by 1900-1 to less than 57 per cent., and, as previously stated, a considerable part of our exports of silk goods is of foreign manufacture. As regards cotton and woollen goods our supremacy is not challenged. 22. Although, as stated above, we send a large proportion of the textile goods which Canada imports, and though there is some reason to suppose that the preferential tariff has done something to check any tendency in this proportion to decrease, it must be repeated that the Canadian tariff is still highly protectionist as regards these classes of goods. The result is seen in the small and diminishing consumption per head of British textiles by the Canadian population. Thus in 1891 the value of cotton and woollen manufactures imported for home consumption into Canada from the United Kingdom was about 10s. 4d. per head of population. In 1901 it had fallen to 10s. It is not quite easy to compare these figures exactly with the corresponding ones for other British colonies owing to slight differences of classification. It may, however, be stated broadly that in Victoria, New Zealand, and New South Wales the consumption in recent years of

* Including a considerable proportion of silk goods of foreign manufacture imported from the United Kingdom.

Imports for Home Consumption—Dutiable Goods only. From U: lited Kingdom. From all Sourci is. Textile Manufactures. Increase compi with 18 i1900-1 ared 196-97. Increase 1900-1 compared with 1896-97. 1892-93. 1896-97. 1900-1. 1892-93. 1896-97. 1900-1. Am'nt. Per Cent. Am ' nt - C-S. Cotton Wool ... - ... Silk Flax, hemp, and jute Carpets, curtains, and oilcloth. $000. 3,481 9,646 2,239* 1,531 545 $000. 2,693 5,577 1,396* 1,159 389 $000. 4,880 8,061 2,107* 1,747 863 2,187 2,484 711 588 474 81 45 51 51 122 $000. 4,569 10,947 2,764 1,619 727 $000. 4,051 7,126 1,988 1,264 587 $000. 6,928 9,944 3,726 1,913 1,147 2,877 2,818 1,738 649 560 71 40 87 51 95 Total l $00 ° lotdl (£000 17,442 3,584 11,214 2,304 17,658 3,628 6,444 1,324 57 20,626 4,238 15,016 3,085 23,658 4,861 8,642 1,776 58

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64

British cotton and woollen manufactures per head of the population has been from three to five times as great as in Canada, although the Australian tariffs have not hitherto contained any preferential clauses. It may be noted that this difference applies in at least equal degree to the consumption by these colonies of British imports in general. Thus, while at present Canada takes about £1 7s. worth per head of goods from the United Kingdom, Victoria takes £5 Bs. worth, New South Wales £7 3s. worth, and New Zealand £8 4s. worth. 23. It is not proposed in this memorandum to consider in detail the relative growth of British and foreign exports to Canada of other groups of articles, the period being too short and the figures in many cases too small to make such comparisons of much value. The figures, however, are fully set out in the appended tables, which also give information as to the recent course of Canadian export trade.

Table I. Dominion of Canada. —Total Value of Merchandise (including Bullion and Specie) imported for Home Consumption from the United Kingdom, British Possessions, and Foreign Countries during each of the Years ended 30th June, 1897 to 1901, distinguishing Dutiable Goods entered under the General and under the Reciprocal and Preferential Tariffs.

Dutiable Goods. Countries. Reciprocal and General Tariff. [ British Preferential Tariffs(a). I Free Goods. Total Value of Imports for Home Consumption. 1896-97. £ 500,000* £ 3,654,265* £ 1,889,335 £ 6,043,600 United Kingdom British possessions Foreign countries 230,392 9,222,350 233,944 7,138,348 464,336 16,360,698 Total 13,607,007 9,261,S27 22,868,634 1897-98. United Kingdom British possessions Foreign countries 596,915 134,481 9,474,938 4,037,978 17,335 1,072,275 2,043,378 264,370 9,214,085 6,678,271 416,186 19,761,298 Total 10,206,334 5,127,588 11,521,833 26,855,755 United Kingdom British possessions Foreign countries 1898-99. 959,060 55,551 11,896,840 4,696,044 201,441 567,743 1,959,989 325,289 10,992,480 7,615,093 582,281 23,457,063 Total 12,911,451 5,465,228 13,277,758 31,654,437 1899-1900. United Kingdom British possessions Foreign countries 1,123,490 58,908 14,691,096 5,361,802 205,826 2,718,077 476,281 12,516,092 9,203,369 741,015 27,207,188 Total 15,873,494 5,567,628 15,710,450 37,151,572 190i 1-1. United Kingdom British possessions Foreign countries 1,190,945 30,449 14,901,925 5,323,093 328,195 2,325,310 429,316 12,711,449 8,839,348 787,960 27,613,374 Total 16,123,319 5,651,288 15,466,075 37,240,682 Note.—Conversions of dollars into (a.) Under the provisions of the rec July, 189-*, goods the product or mam countries, when imported direct, were Preferential Tariff on the 1st August, 18! United Kingdom and certain British pos * For the year 1896-97 the division preferential tariff ' goods is an approxin pounds sterling have been made at the rate of is. lifgd. pe jiprocal tariff, which was in operation from the 23rd Apri lfacture of the United Kingdom and certain British cc entitled to a reduction of duty. This tariff was superset 98, which confined the benefits to goods the produce or n isessions. of the United Kingdom imports into "general tariff " ai late estimate of the imports which would have been sub; ir dollar. I, 1897, to the 31st ilonies and foreign ied by the British nanufacture of the id ',' reciprocal and ject to these tariffs enacted.

9—A. 7

A.^-7.

Table II. (a). Dominion of Canada.—Imports for Consumption.—Total Value of Imports for Consumption (including Bullion and Specie) into the Dominion of Canada, distinguishing Principal Countries. (Years ended 30th June.)

65

Countries. 1886. 1887. 1888. 1889. 1890. 1891. J 1892. 1893. 1894. 1895. 1896. 1897. 1898. 1899. 1900. 1901. United Kingdom British possessions — Australasia Africa Newfoundland West Indies British Guiana East Indies Other British possessions £ 8,342,712 £ £ 9,238,815 8,075,080 £ 8,695,354 £ 8,915,803^ £ 8,639,903; £ 8,496,254' £ 8,866,112 £ 7,955,603 £ 6,396,932 £ 6,776,659 £ 6,043,600 £ 6,678,271 £ 7,615,094 £ 9,203,369 £ 8,839,349 2,834 51,238 78,970 296,528 20,548 24,063 15,976 23,279 9,071 53,516 27,512 72,810 86,630 147,771 168,163 30,410 37,452 22,354 27,144 29,685 6,483 47,150 22,501 100,307 220,652 37,427; 28,917: 20| 42,202 i 11,869 96,501: 250,164 43,587' 37,593! 11,262 34,739: 16,046 ! 154,316: 255,654^ 28,896 10,488! 318 54,407 14,297 154,777 233,010 84,226 79,676 2,968 44,757 39,026 134,234 249,009 69,382 34,212 29,449: 3,456 ; 167,376 252,213 100,181 23,597 23,269 19,694 152,024 255,695 33,324 65,555 488 43,877 15,415 113,304 211,555 37,272 73,462 1,316 30,194 5,604 92,892 227,303 21,489 85,643 1,211 30,638 27,437 95,409 137,799 11,024 112,467 1,412 81,077 20,324 108,289 194,979 7.058 167,540 3,013 115,250 ! 18,063! 135,756' 164,486: 13,903 269,129 24,428 87,630 18,634 128,541 246,343 15,901 281,684 9,226 Total British Empire.. 9,436,732 8,531,875 6,946,981 7,272,860 6,507,936 7,094,457 8,832,869 9,618,640 8,437,535| 9,152,328! 9,408,981| 9,140,360' 9,119,615! 8,197,374! 9,944,384 9,627,308 Germany Holland Belgium Prance Portugal Spain Italy Switzerland China Japan United States Cuba and Porto Bico .. Other foreign W. Indies South America (other than British Guiana) £ £ 442,916' 664,818 62,049 60,629 104,981 144,627 405,8671 426,055 11,605' 11,947 77,972' 84,096 21,924 24,635 41,730; 45,159 194,438! 245,817 305,408 319,331 9,217,405' 9,268,575 346,381! 241,097 3,215 10,211 253,598! 213,478 20,466,307i21,706,732 £ 691,349 68,176 100,427 461,257 15,324 70,041 37,135 39,830 187,444 249,961 9,962,024 500,309 3,172 142,553 £ 758,747 84,879 109,056! 457,949| 14,812! 83,685 25,916 34,292! 158,390 ! 245,282 10,384,405 453,656! 4,479' 249,229 £ I 776,505 86,767 148,219 537,4521 17,267 66,268 33,593 65,039. 172,936 258,584, 10,744,926 364,320 6,638, 170,952! I £ 781,662 80,094 134,681 475,098 14,494 100,439 49,686 50,203 178,558 257,739 11,031,299 404,629 5,089 118,845 £ 1,147,301 57,182 106,239 493,692 10,913 81,406 70,183 39,527 220,079 399,824 10,918,679 604,471 3,400 95,718 £ 786,116 76,820 123,187 581,942 10,784 70,583 35,047 53,109 191,019 307,386 11,963,420 499,496 1,836 89,374 £ 1,200,317 i 70,830 113,062 521,294 9,679 79,992 82,694 56,471 228,771 290,049 10,897,418 501,010 2,412 79,078 £ 985,101 50,116 90,743 531, 200 11,741 82,701 78,410 53,301 197,436 322,101 11,226,271 725,608 3,770 63,081 £ 1,218,793 61,613 189,197 577,591 9,575 74,338 47,449: 68,244: 211,183! 337,739 12,035,758! 174,693 3,429! 79,241 £ 1,334,254 77,283 239,102 534,524 9,368 79,424 46,209 45,652 218,331 274,082 !12,667,611 114,702 2,968 106,057 £ 1,147,400 76,859 252,762 816,853 9,723 100,436 86,560 71,852 180,538 295,758 16,172,382 80,631 3,543 281,918 £ 1,519,203 102,820 476,450 799,170 13,006 109,825 81,287 116,870 154,396 414,680 19,111,062 76,893 6,543 234,500 £ 1,722,637 119,092 662,449 897,637 14,956 115,213 29,707 108,735 129,396 359,880 22,570,763 106,061 3,105 190,115 £ 1,442,754 163,862 786,668 1,109,182 19,788 152,577 67,266 123,834 170,736 332,693 22,702,399 123,385 493 199,459 Total principal and other Countries 21,132,966 25,007,883! 23,238,490 21,627,228 37,240,682 22,535,640 23,171,010! :23,29O,094 14,036,769 22,723,455| |22,868,634| |26,855,755 31,654,437! 87,151,572 Note. —Ooi versions of dollars into pounds st< srling have been made t the rate of 4s. l|jd. per dollar.

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Table II. (b). Dominion of Canada.—Exports.—Total Value of Exports (including Bullion and Specie) from the Dominion of Canada, distinguishing Principal Countries. (Years ended 30th June.)

Note.—Conversions of dollars into pounds sterling have been made at the rate of 4s. lffd. per dollar.

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Countries. 1886. 1887. 1888. 1889. 1890. 1891. 1892 1893. 1894. 1895. 1898. 1897. 1898. 1899. 1900. 1901. . £ £ 13,703,48415,868,665 106,486! 292,279 31,739 26,267 366,228 347,835 341,260, 297,010 56,412 55,779 1,816| 3,247 4,282 7,141 United Kingdom British possessions — Australasia Africa Newfoundland West Indies British Guiana East Indies Other British possessions £ 8,536,156 £ £ 9,158,598 8,236,641 £ 7,829,820 £ 9,935,691 £ 10,126,204 £ 13,336,962 £ 13,167,225 £ £ 14,083,327 12,710,340 £ 11,575,108 £ 20,361,340 £ 22,137,610 £ 21,642,936 54,181 15,266 360,008 258,195 37,537 1,158 3,695 55,567! 92,097 7,311: 5,426 353,138' 313,259 243,064 306,539 46,228 43,502 1,314 246 1,670 211 145,898 5,715 269,013 340,8581 45,393! 16 19 100,830: 4,643! 243,645! 306,872! 39,682! 1,857' 2,642! 121,048 2,419 301,625 361,761 45,261 2,948 2,679 95,307 4,501 359,736 353,975 53,249 479 9,987 72,642 9,019 533,144 373,686 56,936 261 1,364 71,227 : 88,000 9,451. 14,982 579,263! 477,780 414,219! 381,579 79,298 71,184 585 849 3,529 4,647 338,901 27,979 446,015 310,507 56,288 2,728 5,909' 313,934 45,714 371,647 360,052 49,030 8,242 5,179 339,693 247,472 440,722 349,101 57,978 8,567 4,254 474,946 223,349 464,486 395,558 76,594 4,862 15,178 Total British Empire.. 9,266,196 9,866,890' 8,997,921 8,636,732 10,635,862! 10,963,945 14,214,196| |14,214,277! 15,240,89913,749,361 14,611,70716,898,223 J22,763,435! [21,515,138 |23,585,397 23,297,909 Germany Holland Belgium France Portugal Spain Italy Switzerland China Japan United States Cuba and Porto Bico .. Other foreign W. Indies South America (other than British Guiana) £ 52,047 1,559 1,349 109,800 50,435 10,905 22,315 188 12,620 350 7,516,185 152,887 24,856 246,001 £ 89,904 3,053 45,971 70,177 30,108 14,800 25,825 £ 40,797 78 3,505 81,734 32,018 10,750 11,320 226 15,619 11,597 8,747,685 211,022 16,991 259,371 £ 29,507 251! 13,306! 68,673 34,114 2,779 12,342 3 14,821; 2,475 8,942,960 211,086 45,067 255,082 £ 104,207 214 8,592 57,237 42,694 14,340 .16,656 82 7,177 5,5121 8,326,605! 240,750! 11,126 276,589: £ £ 109,344 193,705 3,029 116,687 14,934 11,550 52,137 75,522 24,783 21,035 13,790 19,207 18,698 30,674 137 11,958 52,669 4,232 5,533 8,453,156 8,011,238 263,057 340,163 16,771 38,855 166,103 ; 154,092 £ 154,204 58,062: 137,474 ! 54,256 17,055: 9,114| 17,956' £ 420,422 57,752 145,573 111,983 16,307 11,563 22,436 255 105,109 6,024 7,358,207 273,522 19,881 206,788 £ 128,831 28,821 51,658 68,894 12,078 7,007 7,053 132 75,586 2,118 8,485,824 298,637 55,084 267,837 £ 155,657 28,732 20,143 119,495 8,562 17,222 11,663 59 135,567 1,696 9,133,235 203,304 71,200 251,010 £ 214,815 21,457 72,860 141,924 7,550 10,367 22,321 209 156,570! 29,167 10,145,234 233,304 47,497 232,994 £ 377,558' 77,350 200.125 1 210,670: 18,048 18,426 15,157 1,505 74,628 30,561 9,390,961 242,355 12,018 165,535 £ 456,076 76,551' 174,537! 320,080 6,091 12,160 25,739 567 59,607 27,794 9,274,011 248,125 17,290 254,089. £ 352,583 38,671 246,123 282,487 23,633 17,765 53,518 164 52,666 23,077 14,099,799 231,671 9,847 236,084 £ 440,045 38,502 576,605 324,931 17,549 31,922 64,739 152 104,977 38,770 14,873,061 180,889 20,664 235,568 8,056 6,163 7,738,397 165,533 17,868 246,993 63,097 6,946 9,025,276 254,291 20,322! 215,683! Total principal and other Countries 20,222,732|23,417,132j 33,730,003 32,650,049 39,430,423 40,374,171 |l7,517,393 18,393,660 18,534,863 18,326,541 19,879,962 ,362,538! |24,148,962 23,350,439 24,865,860 28,345,942

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10—A. 7.

TABLE 111. No. 17.-Statbmbkj of the Values of the Principal and other Articles entered for Consumption in Canada.

A.—7.

TABLE 111.

No. 17. —Statement of the Values of the Principal and other Articles entered for Consumption in Canada (both Dutiable and Free) during the Fiscal Years ended June 30, 1897 to 1901 inclusive, showing in each case the portion taken from Great Britain, the United States and all Other Countries. (From Canadian Returns, Trade and Commerce Report for 1900-01 (No. 10-1902))

68

Abbreviations. — G. B., Great Britain; U. S., United States, O. 0.,'Other Countries. 1 alne, 1897. Value, 1898. Value, 1899. Value, 1900. alue, 1901 Articles. Dutiable. Free. Total. Dutiable. Free. Total. Dutiable. Free Total. Dutiable. Free. Total. Dutiable. Free. Total. s $ s s * $ s t % $ I $ $ f $ Ale, beer, porter and ginger ale. G. B. U.S. 0. c. 89,472 59,233 1,013 89 472 59,233 1,013 98,390 59,615 481 98,390 59,615 481 100,289 72,860 269 100,289 72,860 269 106,973 95,751 739 106,973 95,751 739 108,768 86,079 743 103,768 88,079 743 Total* 149,718 149,718 158,486 158,486 173,418 17%418 203,463 203,463 I I 190,590 190,590 ~ I - I Animal!, living: Horned cattle - G. B. U.S. C.C. 2,847 3,370 2,847 56,074 5 8,758 15,991 8,758 51,127 - 18,579 23,125 18,579 54,403 10 500 .37,315 54,358 47,165 54,858 114,480 86,906 23,918 86,906 . 205,445 — 52,704 5 35,136 I 31,278 I 10 I 182,227 j — - - Total' 52,709 6,217 58,926 35,136 24,749 59,885 41,704 67,815 169,338 182,227 110,124 292,351 31,288 72,992 101,523 1 I Hor«os G. B. U.S. o. c. ~ 6,797 106,788 ! 6,797 20S.427 10 420 ] 293,059 ] 6 i 6,725 127,469 100 7.145 420,528 106 29,397 I 101,065 I 29,397 514,129 239 336,792 46,573 116,657 46,812 453,449 955 263,216 7 64,898 89,839 65,853 353,055 7 98,639 10 413,064 Totals — - - 98,645 1 113,585 212,234 293,485 134,294 I 427,779 413,064 130,462 543,526 j 337,031 163,230 500,261 j i, 264,178 154,737 418,915 ! I I i Sheep G. B. U.S. 5,069 1,500 5,069 i 82,215 16 87,985 3,880 739 3,896 88,724 - i 5,762 1,290 5,762 87,931 16,697 2,415 16,697 102,005 12,990 810 12,990 160,314 173,304 80,715 86,701 99,590 159,504 159,504 Totals 80,715 6,589 87,284 88,001 4,619 92,620 j 86,701 7,052 93,753 99,590 19,112 118,702 13,800 I Other - G. B. U.S. o. c. 311 30,183 328 1,991 6,645 2,302 36,828 328 341 17,454 1,389 933 11,121 | 1,274 28,575 1,389 52,866 352 I 4,*182 10,273 75 4,210 63,139 427 38 42,386 164 2,407 8,161 60 2,445 50,547 224 177 19,305 2,194 I 13,504 | 290 2,371 32,809 290 Totals 31,238 53,246 14,530 35,470 30,82-2 8,636 39,458 19,184 12,054 67,776 42,588 10,628 53,216 19,482 15,988

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Recapitulation, Animals - G.B. U.S. o c 311 262,241 343 16,704 118,803 j 17,015 880,544 343 777 433,634 1.395 20,296 155,320 100 21,073 588,954 1,495 28 583,909 362 57,920 135,753 75 57,948 719,662 437 777 546,083 164 120,035 174,398 60 120,812 720,481 224 1,132 624,252 7 166,988 127,371 290 168,120 751,623 297 Grand totals 262,895 135,007 j 397,902 : 435,806 175,716 193,748 778,047 547,024 I 294,493 841,517 625,391 611,522 ! I i 584,299 294,649: 920,040 i Viticles for use of the Army and Navy. G.B. U.S. O.C. _ I 1,683,694 5,4o6 5,569 1,683,694 5,466 5,569 - 625,653 10.666 393 625,653 10,666 893 - 882,625 6,184 285 382,625 6,184 285 - 550,282 46,961 608 550,282 46,961 608 ~ 597,078 I 34,410 ! 2,291 597,078 84,410 2,291 " - ~ " - - Totals - 636,712 636,712 I 389,094 633,779 1,694,729 1,694,729 889,094 ~ 597,851 597,851 " 683,779 Articles for the use of the Dominion of Canada. G.B. U.S. O.C. ~ 89,609 ! 141,096 ! 4,106 j 89,609 141,096 4,106 184,765 155,643 13,959 354,367 184,765 155,613 13,959 190,548 656,768 12,054 190,543 656,768 12,054 306,427 376,296 30,084 306,427 876,296 80,084 474,127 1,092,198 84,488 474,127 1,092,198 84,488 " - " ~ - - Totals - I " 234,811 I 234,811 - 354,367 — 859,865 — 57,911 — 87,889 859,365 - 712,807 i ! 712,807 1,650,818 1,650,813 - Asphaltum or asphalt G.B. u. s. O.C. 7,808 1,204 7,808 j 1,204 j " 15 24,935 80,214 15 24,935 30,214 j 485 64,330 3,933 485 64,880 3,938 I 9 61,328 6,250 9 61,828 6,250 - 67,911 37,889 ~~ Totals - 1 9,012 I _____ 1 9,012 I I 55,164 j - _ 55,164 95,800 95,800 68,748 68,748 67,587 ! 67,587 I Baking powder G.B. U.S. o.c. 676 79,181 1,002 103,999 185 101,416 2 ~ 676 79,181 154 101,801 154 101,801 498 93,155 498 93,155 1,002 108,999 185 101,416 2 -- - I Totals - 79,857 I - 79,857 101,956 I - 105,001 I 101,603 | j I - 101,608 101,955 93,653 ! ~ 98,653 105,001 i Bells, all kinds G. B. U.S. o.c. 834 21,933 698 11,224 ! 6,864 6,517 11,558 28,797 7,215 376 16,300 230 5,313 10,333 128 5,689 26,683 358 2,044 18,268 395 2,982 11,891 4,292 5,026 30,154 4,687 540 20,168 198 6,830 24,582 6,547 7,370 44,750 6,745 4,238 16,890 511 6,614 14,990 14,273 10,852 31,880 14,784 Totals - 22,965 24,605 15,774 j ! 47,570 16,906 32,680 20,702 19,165 ! 39,867 20,906 37,959 58,865 21,139 35,877 57,016 Belts of all kinds - G.B. U.S. O.C 12,099 26,182 1,842 ~ 12,099 28,138 1,342 18,451 38,964 3,814 18/151 38,964 3,814 21,716 28,378 3,247 21,716 28,378 3,247 21,546 22,776 9,380 21,546 22,776 9,880 13,406 23,961 6,299 13,406 23,961 6,299 - Totals - 41,573 53,341 ! - 41,573 61,229 61,229 - 53,341 53,702 53,702 43,666 43,666 1 I 745 9,096 705 j I Belts, surgical, or truss and suspensory bandages of all kinds. G. B. U. S O.C. 3,800 12,969 455 3,800 12,969 455 745 9,096 705 2,146 11,995 294 - 2,146 11,995 294 1,455 14,885 678 1,455 14,885 678 960 16,520 529 960 16,520 529 ~ " Totals ■ 17,224 17,2.24 | - 10,546 10,546 14,435 I - 14,435 17,018 17,018 18,009 18,009

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70

TABLE III. —No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c. — continued.

Eg 3 Value, 1897. Value, 1898. Value, 1899. ] Value, 1900. Value, 1901. Abtic_es. Free. ! I Total. Dutiable. Free. Total Dutiable. Dutiable. Free. Total. Dutiable. Free. Total. Dutiable. Free. i Total. I " I 3fl__Td tables - ■ | G.B. U.S. O.C. 1,702 j 4,448 j [ — 1,702 — I 4,448 — j 6,150 $ 613 4,850 ? $ 613 4,350 $ 234 2,666 * ! ! ~ i ~ $ 234 2,666 9 2,777 4,357- $ 2,777 4,357 1,696 4,658 135 * 1,696 4,558 185 Total* i - 1 1 6,150 j 4,968 - 4,963 2,900 - . 2,900 j 7,134 _ I 7,184 1 6,389 6,389 | j Black). 5, shot! and shoe- I metiers' ink. i i 3,125 15,747 470 4,416 20,150 2,991 27,557 4,416 | 20,150 ! 2,991 ! 27,557 2,088 ! 17,823 5,903 21,759 i _. 2,033 17,823 1,908 2,815 17,981 S65 2,315 j 17,981 ! 965 G.B. U. S. O.C 2 1,9 20*658 2,048 2,179 20,858 2,048 8,125 15,747 470 _ I " - Totals - 24,885 24,835 19,342 - 19,342 i i 21,759 21,261 ~ 21,261 I I ! ! ' " Blueing, laundry, all kinds i G.B. TJ. S. O.C. 16,308 4,2-42 16,808 4,242 16,477 j 2,542 j 157 16,477 2,542 157 38,871 2,540 ~ 18,371 i 2,540 I | 14,200 2,214 123 14,200 2,214 123 18,422 2,407 167 18,4-2 2,407 167 „ - - Totals - - i 20,550 ~ 20,550 19,176 j 19,176 20,911 20,91,1 16,537 16,537! 20,996 20,996 I Bone and manufacturers G.B. U.S. O.C. 9,936 5,213 1,785 3 4,811 19 9,989 10,030 1,804 21,773 1,209 i 6,033 8,313 222 18,634 7,200 1,431 24C67 10,513 9,066 j 11,774 1,889 j 22,229 j 9,066 22,103 1,848 22,006 11,327 3,756 125 15,298 3,560 22,131 26,625 7,316 3,297 6,491 4,322 48 j 2,066 i 725 | 8.345 8,557 5,047 I 10,329 459 Totals - - j 16,940 ! 4,833 10,555 26,056 36,611 10,788 33,017 \ 37,089 ! 18,983 56,072 14,110 | 2,839 16,949 r " i m i : j ! ! I I Books, pario-ieaJs, &c, G. B. U.S. O.C. 205,706 535,946 72,51 1 139,790 203,803 40,342 345,496 739,749 112,853 185,008 ! 578,220 | 51,757 j 814,985 255,811 242,759 50,121 440,819 820,979 101,878 222,442 | 695,134 ! 59,083 j 157,818 270,152 42,492 ! 380,260 i 965,286 - 101,575 ; 203,167 I 729,099 ! 64,122 ! 133,528 365,920 66,248 836,695 ! 1,095,01? j 130,370 228,885 790.-827 69,650 162,540 349,029 62,802 574.371 891,425 1,139,856 132,458 Totals - 814,163 888,985 1,198,098 548,691 1,363,676 1,363,676 976,659 470,462 1,447,121 996,388 565,696 1,562,084 1,089,368 1,668,739 Boot, shoe and stay laces of all kinds. G.B. U.S. o. c. 88,838 6,779 10,842 56,459 ! _ 36,898 6,779 10,842 44,687 7,380 16,843 1 — 1 44,687 7,360 16,843 40,957 8,440 15,795 40,957 8,440 15,795 45,378 8,842 11,120 45,378 8,842 11,120 61,596 10,553 11,935 61,596 10,553 11,935 84,084 - Totals - - i ! - 56,459 68,830 "| 68,890 65,192 ! I 65,192 65,340 65,340 84,084 1 I

A.—7.

71

! I Braces and suspender? - G.B. U. « o. C. 24,138 36,018 1,000 21.138 36,048 1,000 25,783 31,868 2,560 31,868 2,560 30,250 40,032 2,691 ! - 30,250 40,032 2,691 27,364 ,34,619 3,065 27,36. 34,619 3,065 32,726 36,218 1,988 32,726 36.218 1,988 Totals - I I 61,186 61,188 60,211 00,211 72,973 ! I 72.973 65,048 65,048 j 70,932 70,932 ! Breadstuff's: Arrowroot and tapioca - 1 L__ G. B. U.S. O. C. 22,378 1,997 J,331) 22.378 3,997 2,360 21,636 7,732 5,632 i 81,630 7,732 5,632 21,525 4,657 13,777 21,525 4,657 13,777 39,959 16,734 8,218 25,398 16,734 8,2!8 25,398 26,529 4,641 26,941 I __ 26,529 4,641 26,941 I - Totals - 26.735 26,735 35,000 35,000 I 39,359 ; I i I 50,350 I 50,350 58,111 58,111 ~ Biscuits, all kinds - I G.B. U.S. O.C. 8,006 83,467 401 33,167 404 6,678 32,47 1 547 6,678 32,471 547 9,476 27,862 747 9,476 27,862 147 7,612 27,332 666 7,612 27,332 666 10.08? 17,814 974 30,083 17,814 974 - - - ! Totals - 38,085 28,871 28,871 41,877 41,877 89,696 ~ 39,6'.6 38,085 - i 35,610 35,610 Com, Indian (incltiling ensilage com). u. s. o. C. 512,505 718,374 7 1,230,879 7 63,576 I 6,963,908 272 7,057.484 272 218,163 8,966,890 | 35 | 1 9,185.053 35 175,515 6,961,970 7,137,485 162,677 6,484,18! 346 | 6,646,858 846 j ~ I - I 1 Totals - 512,505 718,381 j I i ! I i I 1,2E0,886 I 63,576 6,964,180 ______ ! 7,057,756 ! 1 . 218,163 8,966,925 j 9,185,088 175,515 i 6,981,970 7,137,485 162,677 6,484,S27 6,647,204 Whuat G. B. U. S 0. ('. ! ' I _____ I 20 — 37,719 — - j —_. 97,719 42,402 2 ) ~ ! 42,402 2 21,542 5 i I 21,542 | 5 I 15,770 j _ I 15,770 — 61,914 j 1 j 61,914 1 '1 otitis i ~ i ! _ . I 42,404 21,517 ! ! 15,770 37,739 | 37,739 42,404 ._. 21,547 15,770 61>915 I - 61,915 W&eut flour - - j G. 3i. u. s, O.C. 114 94,263 j 2 I i 114 94,363 2 47 348,166 34 47 148,166 14 161 196,007 9 161 196,007 9 36 167,839 20 36 ! 167,939 J 20 503 145,492 6 503 145,492 ■6 - ! Totak 94,379 j 94.879 148,227 148,227 196,177 — j 138,177 j 167,995 — 99,152 " 231,912 3,448 I 480,141 | 505,^98 — 352,311 I 211,334 I 107,995 146,001 146,001 Other - . „..■■■ ,_ i : i Totals G. 8. U.S. O. C. 72.487 ! 153,462 j 464,585 ! 1,683 I 72,487 338,319 153,462 464,268 135,100 471,657 221,364 4,491 135,100 476,048 221,364 99,3 52 476.693 352,311 4,189 231,912 510,087 211.394 155,643 551,700 416,899 j 1,124,242 | 41 4,111 155,684 555,811 416,899 1,683 828,021 I 4,491 i 832,512 928,156 3,448 | 931,604 | 949,204 4,189 953,393 j i 4,152 1,128,394 ___ I 8,970,338 35 3 30,314 9.915,262 366,884 256,294 900,872 237,478 j i i ! i r Btt5ft{iitulati«>-, Breail stuffs 0. It. .0. C. 10.1,005 156/»-8 j 1,175 S20 i 720,057 ! i 03,005 ! 1,636.644 156,235 1,895.884 163,461 765,904 227,559 163,461 7,734,303 227,831 130,314 944,924 36>:,849 256,294 7,866,83 1 237,478 192,758 944,238 444,821 r 4! I 6,4*8,292 346 192,799 445,167 j 6,968,399 272 6,966,159 Grand Tcl.i's 720,064 0,968,67 1 1,156.024 8,125.595 1,442,087 8,970,373 | 10,412,460 j 1,394,444 6,966,159 8,360,603 1,581,817 6,488,679 8,070,496

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72

Table III.—No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c.-continued.

a alue, 1897. alue, 1898. Value, 1899. Value, 19C0. 1901 Ahticj h^ I I Free. j i Total. Dutiable. | i i Free. i Total. 1 i Dutiable. | Fr«e. Total. Dutiable, i Free. Total. Dutiable. Dutiable. Free. Total. Brinks, slays, and tiles - j G.B. U.S. o. c. 14,632 67,593 1,067 67,386 i 73,223 648 82,018 140,816 1,715 224,549 12,371 62,033 183 81,934 80,130 3,904 94,305 142,163 4,087 26,708 101,341 193 103,964 109,453 2,095 130,672 210,794 2,288 27,927 117,690 297 141,603 824,758 883 169,630 442,448 1,180 23,987 j 97,290 108,902 '• 443,999 454 18,423 13 3,343 559,712 121277 552 901 18,877 Total- ! 83,292 141,257 74,587 105,968 240,555 128,242 215,512 ] 343,754 | 145,914 467,244 j 613,158 j 693,055 ! I Bristles - - G.B. U.S. O.C. - 17,938 25,179 10,430 17,938 25,179 10,430 21,013 26,319 11,963 21,013 26,319 11,903 _. j 2.V k 009 14,099 74,U0 25,009 35,032 14,099 74,140 | 29,656 37,347 17,102 29,656 37,347 17,102 — 30,201 — 23.170 — 7,320 — j 60,691 30,201 28,170 7,320 Totals . 1 53,547 53,547 59,295 59,295 [ ! 84,105 84,105 60,691 _ I i British fum, dextrine gi-ing-creum, and enamel sizing. G. B. U.S. O.C. 3,867 10,779 4,157 - ~ 3,867 10.779 4;.57 1 5,944 14,919 4,511 I 6,944 14,916 4,511 4,694 25,262 3,641 - i 4*694 25.262 .8,64! 5,928 | 30,742 ! 7,102 I 5,928 30,742 j "7,102 I 7,279 i 29,490 j 9,972 7,279 89,490 9,972 .... i I 18,803 1 18,808 25.374 I ! 1 43,772 | I 48.772 46,741 Totals 25,374 33,597 - 33,597 j - 4S;741 I Brooms and brushes G.B. U. S. O.C. 12,297 40,071 53,232 12,197 | 40,071 53,232 19,273 49,618 70,3 75 19,878 49,613 70,175 15,533 65,585 78,944 15,538 65,585 78,944 16,023 83,443 92,281 16,023 83,443 92,281 i 16,058 79,496 94^81 - ! 16,058 79,496 9*4,581 - I [ - - _ Totals I 105,600 j 105,600 139,066 139,066 160,062 i ~ 160,062 191,747 191,747 [ !»©r,15 i - 190,135 __ I I I _l I I Broom-corn | G.B. U.S. O.C. I 106,380 102 108,149 102 108,149 i 8,974 125,360 50 12a,8w — 50 j —- 209,440 2597 209,440 ! 2,597 j 212,037 81,373 81,373 106,330 — — - - Totals ~ 108,251 1 108.251 I 212,037 I 81,873 81,373 - 106,230 j 106,330 134,384 134,384 ! 1 i i ___! I I I ! I J. i 33,013 | 90,758 i 06,027 ; 30,352 85,181 61,857 Buttons, all kinds - G.B. U.S. O.C. 81,113 | 45,268 69,045 I 4 4.015 1,987 | 31,117 49,288 61,032 28,478 ! 50,311 j 50,425 | 129,214 I 3,020 I 2,597 j 28,478 53,331 53,022 30,705 J 71,981 | 47,106 | 2,581 1,140 3,721 I 30,7p5 74,5)2 48,246 33,012 86,548 65,997 , 1 »,210 30 1.U7 1,476 I 1,046 ! 31,469 86,657 62,908 181,029 Totals 135,426 6,006 141,432 5,617 | ■ i 134,831 I 149,742 i 153,4,63 J 85*557 4.241 189,798 i 177,390 I 3,039 | ; /

73

A._ 7

Candles - G .1!. U. S O.C. 10,118 4S.675 1,189 10,118 48,675 1,199 8,952 75,060 803 8,952 75,060 803 8,638 71,472 1,134 8,638 71,472 1,134 81,244 11,140 51,355 1,101 - - 11,140 . 51,355 ! 1,101 I i 12,031 91,315 1,743 105,089 - r 12,031 91,315 ; 1,7*3 105,089 j 215,634 21,137 52,611 289,382 27,614 1,033,805 49,235 j - Totals 59,982 r 59,982 84,815 84,815 81,214 " 63,596. 63,590 - I Carpets, squares, mats, rugs, N.E.S. G. B. 92,820 U. S. 66,183 O. C. 7,599 - - 166,602 ~ 92,820 66,183 7,599 166,602 78,181 46,526 18,906 __ ,78,181 46,526 13,906 121,930 I 36,317 31,410 121,936 36,317 39,410 3 90,104 35,012 57,072 i - 190,104 I 35,012 j i 57,078 j 215,634 21,137 52,611 - - - i Totils - - I 188,613 I 138,613 197,663 - I 197,063 282,188 282,188 | 289,382 I i i Carriages, all kinds G. B. 57,96 I U. S. 1,507,37*4 O. C. I 25,410 - - j 1,590,74 7 - - 57,964 1,507,373 25,410 13,815 1,240,783 47,596 13,815 1,240,783 47,596 1 7,378 1,318.789 31,5.i8 17,378 1,318,789 31,553 1,367,723 8,147 1,325,407 71.913 - 8,147 1,325,407 71,913 1,405,467 27,614 1,033,805 49,235 j 1,110,654 Totals I 1,590,747 1,302,194 t - I 1,802,194 1,307,725 I 1,405,467 ! - 1,110,654 1 I ! I : ;_____ I i ! i i _ ! Cases, jewel, and watch eases. G. B. ! 3,031 U. (S. I 2,462 O. C. I 607 G.B. o. c. 3,031 I 2,462 607 1,037 5,705 1,768 8,560 ! 1,087 5,705 1,768 790 5,018 2,304 790 5,018 2,304 466 6,262 1,836 466 0,262 I 1,836 I 1,675 2,427 1,910 1,675 2,427 j 1,910 : - - I Totals - -; 6,100 6,100 i i - 8,560 8,112 - 8,118,564 I 8,564 ! 6,012 - 6,012 | i i i 1 i _ ; I ! ! Cement G. B. 111,551 U. S. 45,210 O. C. 104,031 G. K. U. s. o. c. 1)1,551 45,210 104,031 106,548 59,855 2o0,574 - ! I 106,548 59,855 200,574 366,977 129,738 52,578 298,098 129,738 52,578 298,098 247,089 55,862 214,689 247,089 55,862 214,689 229,795 231,068 208,976 229,795 231,068 208,976 - - ! - I " - ! - I - " Totals - 260,842 260,842 ! ! ! ! - i 480,414 - 480,414 517,640 - 517,640 669,839 " 669,839 366,977 i j Clocks and parts of G.B. u. s.! O C I 5,283 81,326 19,957 5,283 91,326 19.957 7,342 130,727 26,701 7,342 130,727 26,701 7,326 | 156,374 23,020 7,326 156,374 23,020 6,840 174,885 16,635 - 6,840 174,885 16,635 9,882 174,170 24,794 9,882 174,370 24,794 - - Totals - -1 116,500 164,770 186,720 198,360 198,360 208,846 208,846 116,566 164,770 186,720 I Coal, coke, &c. - G.B. U. S. O.C. 98,900 3,214,715 211 33.365 5,92.1,800 5,548 5,962,708 132.265 9,138,515 5,' 54 123,227 3,101,018 906 2,346 6,192,379 125,573 9,193,397 906 78,031 8,G64,612 20 7,305 8,846,030 79,336 10,510,642 20 49,571 4,359,742 1,127 7,108,624 50,698 11,468,366 87,818 5,143,450 316 52,767 8,551,321 140,585 13,694,771 316 - - - ! Totiils 3,313,826 4,409,313 7,109,751 11,519,064 5,231,584 8,304,088 13,835,672 9,276,534 3,225,161 6,194,725 I 9,419,876 3,736,663 6,853,335 10,589,998 Coeoaauts, and cocoa paste. G.B. IT. S. O. c. 49,685 80,269 39,051 13,98? ! 20,013 24,798 63,567 100.284 63,849 58,587 91,270 45,864 16,501 18,796 28,525 75,088 110,066 74,189 76,186 122,414 41,075 15,356 24,345 59,686 91,542 146,759 104,361 96,498 148,735 5S.5'76 21,150 83,202 63,409 117,648 181,937 | 122,385 107,147 131,89! 84.434 20,i 18 49,227 (?3,47l 127,665 181,124 177,905 I Tot-ls - 304,209 117,761 I 421,970 I | 323,478 163,216 j 486,694 ! 168,905 58,795 227,700 I 195,721 63,822 259,^43 _J<,_75 99,387 342,662 I

74

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Table III.— No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c.-continued.

t». alue, 1 $97. Valuo, 1398. Value, 1899. Value, 1900. i Value, 1901 Ar.Tici.ES. Free. Total. Dutiable. o Dutiable. Free. Total Dutiable. Fice Tatai. Dutiable. Free. Total. Dutiable. Free. Total. Coffee;, chicory, 4;c. G. B. u. s. o. c. 4,468 05.025 2.904 S 136,499 S 140,967 65,05:5 522,098 5,111 81,068 4,550 82,556 s 87,067 81,068 364,867 5,591 105,464 1,969 82,607 88,198 1 [ 105,464 j 380,715 4,986 120,177 1.466 68,215 373,965 % 73,201 i 878,431 1 5,331 138,310 3,459 79,221 84,552 138,31$ 271,457 494,319 i 519,194 - 378,746 360,317 808,005 I Totals 7lV>97 035,693 728,090 90,729 442,873 633,602 I ■ 113,024 461,853 574,377 Ii6,6a9 442,180 | 568,809 147,(193 347,226 J I i I 1 Collars and cuffs - G. H. U. S. .V- <-'■ 31,119 7,056 1,377 30,119 7,656 1,377 42,022 9,294 6,826 - 42,022 9,294 6,826 44,870 11,400 9,666 44.870 11,400 9,666 36,028 14,622 15,411 I 30,028 14,622 15,411 25,612 24,994 38,469 ~ 25,612 24,994 38,469 89,075 - Totals - 39,152 58,142 ! 89,075 I I 39,152 - ~ 58,142 65,935 i 65,936 66,061 66,061 Combs • • G. B. u. s. 0. C. ■ 35,399 16,695 21,51 j - 35,399 10,695 21,515 41,441 20,617 25,815 41,441 20,617 25,615 f 1,323 30,245 40,875 51,388 30,245 40,875 54,424 I — 37,484 i — 61,223 j — 153,131 I — 54,424 37,484 61,223 54,137 32,740 128,478 I 54,137 32,740 41,801 j 128,478 ~ I I _ I Totals ~ I I 73,60'j 73,009 87,073 87,673 1 i ■>, 44 3 - I 122,443 153,131 i - ! I I Cordage twine and manuof. G. B. U. S. 0. C. 18,324 258,126 743 18,321 238*126 713 21,971 ]89,i 41 1,44 t 4Go CH5,880 118 22,430 574,021 3,567 7-I.4 63 1,826 575 880,004 8 35,410 32,186 . 960,069 80,454 1,834 1,893 32,186 . 80,454 1,893 752 f98,396 32,958 978,850 1,893 66,627 96,3 15 1,802 1,897 ; 1,015,674 I 68,524 1,110,989 1,802 Totals 277,193 - 277,193 212,401 380,403 .198,924 310,126 i 887,187 i 997,313 114,533 j 114,533 899,148 ! 1,013,681 ! , i 163,744 1,017,571 ! 1,181,315 __i Cotton, and manufactures of. G.B. U.S. O.C. 2,693,114 3,119,147 239,1110 177,578 3,361,379 1.1.418 2,870,492 4,480,520 258,518 3,080,068 1,332,533 292,193 1 98,250 4,148,607 18,059 3,-84,324 5,481,140 308,252 3.906 676 3,679,128 398,084 197,090 I 3,416,064 ! 16,981 i [ 4,103.766 4,474,687 5,096.093 ' 1,509,312 j 415,065 52V.570 ' 9,614,923 6,506,569 j 378,113 ' 4,852,801 ' 4,879,909 j 4,491,575 I 0,000,887 | 1,463,688 j 542,084 j 584,397 4,889,202 j 11,395,771 j 6,927,992 — 19,504 ! i0 7 227 — 340 \ 502 — 3,232 j 1,709 i 204,7 15 5,084,624 j 5,148.970 6,812,656 20,222 604,619 Totals 4,051,361 3.55S, .75 7,609,536 •1,710,794 4,362,922 9,073,718 5,984,188 3,630,735 i 5,373,907 I 12,301,899 L_ _ L_____ I ! I 1 1 Crape* all kinds - G.B. U.S. O.C. ■ 13.674 1,514 1,079 I 13,674 1,514 1,079 15,820 207 3,220 15,820 207 3,22 i 15,657 3,072 2,571 18,657 19,504 1,072 340 2,571 3,212 — 20,227 — 502 — 1,709 — 22,438 I -_ I 1 ! - " I Totals 16,207 19,247 I 19,247 20,300 I ' 16,267 " 20,300 23,076 | 23,078 23,076 I i'2,438 ! I !' 1 I

A.—7.

31—A. 7

75

Curtains Totals g. a. u. s. O.C. 169,19-- | 58,692 | 36,822 | 1 I ~ 169,192 58,692 36,822 I 192,768 78,480 42,323 192,766 i — 78,480 j — 42,323 | — 313,669 | ! 248,944 | 88,980 | 52,449 ! - 248,944 88,986 52,449 284,183 ! 92,024 ! 61,778 j i " ! _ i - ! 284,183 92,024 61,778 305,623 55.443 75,884 - " - . - '■ - I 305,623 I 55,443 1 j 264,706 t 313,569 390,379 390,379 437,985 !. 437,985 __J I 436,950 864,706 j 436,930 - '- I j I .._ j : Drags, dyes, chemicals, and medicines. G.B. U.S. O.C. 228,350 553,990 343,380 640,341 875,048 276,644 868,691 1,429,038 620,024 300,548 616,294 381,985 805,028 1,105,576 1,074,644 1,690,938 520,290 902,275 415,155 i 757,240 | 356,337 I 599,974 1,327.483 423,737 , 1,015,129 2,084,723 778,074 551,908 771,119 I 260,030 I 670,795 1,373,414 417,500 1,222,703 2,144,533 677,530 714,336 765,109 356,152 .697,776 | 1,917,007 i 528,251 j | 1,412,112 i 2,682,110 884,403 Totals | 1,125,720 1,792,033 2,917,753 1,298,827 2,399,962 3,698,789 1,528,732 2,349,194 ■3,877,926 J 1,583,057 2,461,709 4,044,766 1,835,597 3,143,034 4,978,631 ! I I i i i Earthenware and chinawars. G.B. U.S. O.C. 38.5,780 62,662 146,880 386,780 62,663 14 6,380 454,062 j 77,059 | 144,753 ! ~ 454,062 77,059 144,753 577,290 136,256 ! 2;'3,181 577,290 | 136,256 | 203,181 I | 563,931 188,495 207,100 i 563,931 188,495 207,100 687,158 161,805 265,714 687,158 161,805 265,714 ! - - _ - - Totals 595,822 | !— 595,822 675,874 j 675,874 916,727 916,727 j 959,526 j 1 959,526 3,114,677 — j 1,114,677 — . ! I I i i iI i i i I ! Electric apparatus G.B. U.S. O.C. 6.806 449,553 2,340 458,699 6,800 419,553 2,340 8,274 | 428,644 | 5,104 I ! 8,274 428,044 5,104 12,475 538,789 2,690 12,475 538.789 2,690 21,225 847,653 | 2,434 _ I 21,225 847,053 2,434 871,312 9,177 904,629 6,048 — 9,177 -- 504,629 — 8,048 - I Totals ! - ! 458,099 442,022 i 442,022 i 553,954 I | 1 553,954 871,312 I I 919,854 i - - 919,854 Embroideries, 5.0. P. ■ 1 G.B. U.S. O.C. 42,626 4.641 93,0,05 j ! I - ! I 42,620 4,641 93,055 211,308 ! 2,272 ! 18,389 j 20,308 2,272 16,389 18,566 4,790 23,202 - 18,566 4,790 23,202 22,298 8,444 23,237 53,379 28,298 8,44 4 23,837 20,502 ! — 20,502 6,905 ! — I 6,905 29,172 ; — 29,172 56,579 j 56,579 Totals ! - ! ! - i - 140,322 j j ! j I 140,322 38,969 i : 1 : I ! I 46,558 ! I 63,979 I l - f .38,969 | 46,558 ! - - i ! i i I I Euifiry and manufacture of G.B. U. S. O.C. 979 10,214 38 i 796 I 35,522 i 1,773 25,736 j 38 442 14,833 203 2,032 j 15,629 j 2,474 | 30,462 ; 203 ! 399 21,092 232 I 2.798 18,656 3,197 j 40,348 252 410 25,101 104 1,634 j 17,678 | 2,044 42,779 104 I 647 | 22,158 ! 2,736 13,243 332 3,383 35,401 382 Totals ! - I - ~ i 11,231 ! 16,319 | 27,549 15,478 I 17,661 ' 1 33,139 ; 22,343 ! 21,454 43,797 25,615 19,312 44,927 22,805 j 16,311 39,116 Fancy Goods: Bead Ornaments I i i 1 . i ! G. B. U.S. o, c. 13,318 | 1,140 j 15,129 ' 33,218 1,140 15,129 9,403 1 4,607 3 7,237 - - ... ; 9,403 i 9,087 4,607 1 3,396 | 17,237 | 27,492 j 31,307 | 39,975 ~ ; _ 9,087 3,396 27,492 8,813 4,178 25,372 I 8,813 4,178 I 23,372 5,914 ! 6,975 I 37,055 | ! 5,914 6,975 37,055 Totals I | 39,975 49,941 I 29,487 29,487 31,307 < — 38,363 - 38,363 49,944 j - Braids, bracelets, cord?, fringes, tassels, &o. ! j I : G. B. U.S. O.C. 156,379 83,280 79,8; 9 ~ 156,379 85,280 79,879 321,538 173,438 95,535 105,616 371,589 173,438 95,035 105,016 i 147,156 125,957 112,075 147,156 125,957 112,075 153,288 139,867 109,983 ! 153,288 139,867 109,988 12S.874 103,753 155,622 129,8" 4 103,753 155,822 - i Total j 321, 538 I 4 03,143 ' I 103,143 389,249 389,219 - 374,589 385,188 385,1 88

A.—7

76

TABLE III.—No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c. — continued.

J. a O ■ Value, 1897. Value, 1898. Value, 1899. Value, 191'0. Value, 1901. A_TIUI.ES. Free. Total. I T ~l _._ Dutiable, j Dutiable. Free. Total. Dutiable. Free. Total. Dutiable. Free. Total. Dutiable. Free. Total. , $ $ % $ I $ % ' $ $ % I S $ S v Fancy Goods — continued Flowers, artificial - G. B. 109,668 — U. S. 51,796 — O. C 26,584 — G.B. U.S. O.C G.B. U. S. O.C 109,668 51,796 26,584 188,047 j 109,668 ! 51,795 I 26,584 117,794 66,373 39,245 228,412 117,794 66,873 39,245 87,171 71,961 33,136 87,171 71,961 33,496 73,0*3 65,155 33,966 73,083 j 65,455 : 33,966 ' 50,190 58,920 26,378 56,190 58,920 20,378 ! - " - ~ ~ Totals - - - - 188,047 j ! I I I 138,047 - 223,412 I I 192,028 192,628 I i 172,504 | 172,504 i : 141,488 - 141,488 . I ! i ' 1 I I ... _ I I I I I I i Feathers, ostrich and G. B. 121,787 — •vultur., dressed aud U. S. 23,848 — undressed. O C 30,742 — G. B. U.S. o c. G. B. U.S. o c. 181,787 23,848 30,742 121,787 23,848 30,742 127,315 43,246 47,025 222,586 127,315 48,246 47,025 155,904 75,920 51,945 155,904 75,920 51,945 156,537 78,876 55,686 156.557 78,876 55,686 138,962 4 3,895 39,42 1 136,962 43,895 39,421 - _ - - - Totals - - - - 176,377 — j I ! ; I 1 i 176,377 I 1 222,586 283,769 j I 283,769 220,278 ■ ■ j. 176,377 I I 291,119 291,119 220,278 - i Laces, lace collars, and G. B. 447,380 — similar goods, &c. U.S. 15,972 — 0. C. 74,615 — G.B. U.S. O.C. 447,380 15,972 74,615 447,380 3 6,97 2 74,615 544,1 13 13,923 133,067 544,113 13,923 133,067 j 464,226 21,474 133,431 464,226 21,474 133,431 505.583 35,177 153,120 - 505,583 35,177 153,120 538,528 31,677 228,7 14 538,528 31,977 228,714 | - ' - I __ ! - I ! Totals - - - - 537,967 — 537,967 537,967 691,103 6,91,103 619,131 ! _ 619,131 I 799,219 ! 693,880 I 693,880 799,219 ! ! I | ! 30,663 113,949 185,923 : I i i Other - - G. B. ! 24,750 j U. S ! 84,774 | on 1 iir 7i;k G.B.! u. s ! o. c; 24,750 84,774 117,706 24,750 84,774 ! 117,760 I 31,560 91,138 116,934 I - 31,563 91,138 116.934 28,695 102,895 166,489 28,695 102,895 166,4*9 30,691 115,275 144,575 30,691 115,275 144,575 30,603 113,949 185,923 I I U. V. 117,766 ; Totals - - ! - - 227,290 — i ! 239,632 298,079 ! ___ 290,541 - 227,290 227,290 j 239,632 I - 298,079 290,541 330,535 330,535 - Recapitulation, Fancy G. B.. 873,182 Goods. U. S. 262,809 O.C. 341,715 I Grand Totals ... 1,480,706 — Fertilizers - - G. B. 1 375 i 3,232 . U. S. 52,747 * 31,859 O, C. | — 2,763 Totals - ... 5i,122 j 37,854 I I ' : i i I I i i i I I ! 873,382 1,003,683 262,809 i 319,822 344,715 : 459,124 1,003,683 319,822 459,124 892,239 401 603 524,928 892,239 ! 401,603 524,928 928,015 438,828 522,707 928,015 438,*2i 522,707 858,131 359,469 673,113 898 131 359,469 I 673,113 I I - - 1,782,629 j 1,818,770 ! I : i 1,«89,550 1,480,706 1,782,829 "I I ! 1,818,770 ~ I ! 1,886,550 , 1,930.7)3 1 930,713 1 1 .--_. ! 4,607 740 84,606 45,195 2,763 j 503 91,976 j 46,438 — — —_ 23,988 I 25,930 | 220 I 24,728 | 71.125 723 565 59,037 780 ; 45,827 j 234 j 1,295 104,864 234 5,820 | 61,543 8,4 85 I 56.'756 769 14,305 118,299 769 3,427 70,781 ! 5,141 101,391 I 800 8,565 172,172 300 - ' 50,138 I 98,576 | 59,602 46,791 | 106,393 67,863 ! 66,010 ] 138,373 | 74,208 J 106,832 j ' I 181,040

77

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Fish and fish produce, N.E.S. G.B. I U. 8.. o. c. I 41,815 286,220 41,165 __ I 102,519 j 264,398 41,815 388,739 305,563 54,126 276,491 33,066 102 86,920 334,465 54,228 74,564 363.411 369,207 373,531 52,415 137 1,313 385,895 74,701 370,520 43.S310 55,618 483,412 43,'bJ0 1,133 485,131 55,t? 18 484,545 528,751 63,2* 7 407,999 53,021 — | 63,267 517 ! 408,516 359,053 J 412,074 Totals . -I 369,200 366,917 736,117 369,683 421,487 I 791,170 496,186 387,345 883,531 582,650 I 486,264 1,068,914 524,287 859,570 883,857 I Fisheries, articles for, nets, seines, lines, &c. G.B. U.S. O.C. I - 334,399 204,168 2,059 334,399 204,168 2,059 8,665 3,613 274,107 206,528 3,003 282,772 I 9,039 210,141 | 5,263 3,003 ! — 298,252 233,730 4,04b 307,341 238,993 4,046 10,730 0,914 305,719 298,310 5,855 316,449 305,224 5,856 14,829 12,197 16 298,054 J 312,883 321,205 333,402 7,657 7,673 \ - - i Totals - i i i i ! I 540,626 ' 1 I ! 483,638 j 495,916 I 14,352 ! 17,644 I 609,881 - 540,626 12,278 j 536,028 i 550,380 627,528 27,042 626,916 653,958 I ,1 i ! I I I Flax, hemp, jute, and mannfactnres of. G.B, U.S. O.C. G.B. 1,158,809 U. S. 55,149 O. C. 49,750 831,632 | 212,819 I 5,382 i 1,990,441 267,968 55,132 1,280,829 55,321 76,186 93 6,003 254,434 23,002 2,196,832 1,610,210 309,755 69,395 99,188 74,939 1,081,210 450,330 2,848 2,691,420 519,725 77,807 1,660,274 63,348 107,269 i 1,269,-54 478,240 15,688 1,763,182 2,929,528 541,588 122,957 1,747,294 74,864 90,912 3,101,085 376,296 28,067 2,848,379 451,160 118,979 Totals - - - | 1,263,708 1,049,833 | | 2,313,541 1,412,336 j 1,193,439 I 2,605,775 j 1,754.564 1,534,388 3,288,952 1,830,891 3,594,073 3,913,070 1,505,448 3,418,518 Fruits: Fruits, dried, including nuts. i i i i I I G. B. ! 46,878 ! U. S. i 307,420 | O. C. 479,342 j 46,878 307,420 479,342 65,036 497,472 657,274 __ ! i - 65,036 497,472 657,274 52,171 471,840 727,305 i - 52,171 471,840 727,305 57,629 692,171 807,540 - 57,629 692,171 807,540 56,057 "27,861 929,004 - 56,067 727,861 929,004 - I - - I Totals - - - j 833,640 I_ i | 833,640 j I j 1,219,782 i i 1,219,782 1,241,316 ! 1,241,316 1,557,340 I 1,557,340 I 1,712,922 I ! - I 1,712,922 I , | i 'I i ! I Fruits, green and ripe - G. B 165,873 U. S. 583,080 O.C. 171,882 - - 890,835 5 465,006 11,092 135,878 1,048,086 182,974 94,311 762,027 I 177,204 j 24 506,372 | 4,847 94,335 1,268,399 182,051 117,147 817,003 234,331 557,499 9,208 ' 117,147 1,374,502 243,539 J 57,291 927,381 90,261 | 578,017 I 8,463 j 157,291 1,505,398 93,724 155,563 961,759 204,039 1,321,361 31 666,747 2,517 i i 155,594 1,628,506 206,556 Totals - 476,103 1,366,938 1,033,542 511,243 1,544,785 1,168,481 566,707 ; 1,735,188 1,174,933 i 581,480 1,756,413 669,295 1,990,656 , I I i I I I i ! ! Fruits, other, including preserved fruits. G.B. | 31,549 j U. S. 30,685 1 O. C. j ,077 j G.B. U.S. O.C. 726 1,425 1,409 32,275 32,110 7,486 35,433 j 36,495 j 8,827 I 836 35,769 36,495 9,609 49,754 57,237 8,925 49,754 57,237 9,112 64,933 91,259 30,077 134 65,067 91,259 10,077 78,502 77,359 13,802 24« 78,502 77,607 13,809. 782 - I 187 j ~ i - " Totals i - - 68,311 3,560 j 71,871 1 1 80,755 I 1,118 81,873 I 1 115,916 187 !_ l 116,103 j 166,269 134 166.403 l<;9,668 j 248 169,911 I ! I I ! 1 I I i I I I i i i I I i i I I Recapitulation, Fruits G. B. 214,300 U.S. 923,185 O. C. 657,301 - - 1,792,786 G.B. U.S. O.C. 731 466,431 12,501 215,031 1,387,616 669,802 194,780 1,295,994 843,305 2,334,079 36f) I 506,372 5,629 195,140 1,802,366 848,934 215,072 1,346.080 960,561 2,525,713 557,499 9,395 219,072 1,903,579 969,956 279,853 1,710,811 907,878 134 578,017 3,463 279,987 2,288,828 911,341 290,122 1,766,979 1,146,845 31 666,995 2,517 290,153 2.433.974 1,149,362 Grand Totals - 479,668 2,272,449 512,361 I 2,846,440 I 566,894 3,092,607 2,898,542 581,614 3,480,156 3,203,946 : t 669,543 3,873,489 i I I Furs, manufactures of G. B. 185,724 U.S. 38,516 O. C. 172,258 G. B. U.S. O.C. 112,706 266,774 125,593 298,430 305,290 297,851 185,038 ' 56,951 199,386 123,324 j 246,3 73 | 80,517 308,362 303,124 279,903 275,130 I 99,357 j 311,284 I 250,457 332,575 294,217 525,587 431,932 605,501 260,739 ' 109,787 888,699 215,2'!8 745,779 386,870 475,997 855,566 775,069 378,331 148,691 438,369 283,20b 809,129 827,455 661.537 957,820 765,824 Totals , - I J - - I 396,498 I 505,073 901,571 441,375 1,563,020 450,014 891,389 685,771 877,249 759,225 ! 1,347,407 2,106,632 i 965,391 1,419,790 2,385,181

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78

TABLE III .—No. 17. Statement of the Values of the Principal and Other Articles entered for Consumption in Canada, &c. — continued.

i V, 1" Value, 1S9! Value, 1898. Value, 1899. Value, 1900. Value, 1901. Akttct.es. Total. Dutiable. § - Dutiable. Free. Free. Total. Dutiable. Free. Total. Dutiable. Free. Total. Dutiable. Free. Total. Glass and manufactures of. G.B. U.S. O.C. 9 187,888 433,729 518,147 1 187,388 43-3,729 518,147 228,043 I 363,523 ! 432,540 j $ 228,643 363,523 432,540 289,049 484,210 569,799 $ $ 289,049 484,210 569,799 357 115 535,735 735,844 $ 367,115 585',735 755,844 352,204 338,692 684,723 $ 352,204 538,692 684,723 1,575,619 ; Totals L 1,139,764 i 1,139,764 1,024,706 ! 1,024,706 1,343,058 , 1,343,058 1,658,894 3,658,694 1,575,619 - Glae, glue stock, and mucilage. G.B U.S. O.C. 5,644 53,081 39,102 5,844 | 53,177 j 39,102 | 14,122 78,468 44,065 485 14,122 78,953 44,065 17,682 99,363 59,319 1,797 17,682 101.160 59,319 25,215 96,322 49,888 649 25,215 ! 96,971 | 49,888 | 28,045 51,960 76,476 1,183 28,045 93,143 76,476 Totals 98,027 | 95 98,123 485 i 1^6,384 1 ! 1,797 178,161 I 197,664 136,335 137,140 171,425 649 172,074 196,481 1,183 ! i i 220,458 I 208,118 -— 37,097 ! -1,580 ! 466,185 \ 443,311 j — 723,740 j 703,009 ' — Gloves nud mitts of all kinds. G. B. U. S. O.C. 223,427 | 31,398 266,553 I 228,437 21,398 516,378 193,393 27,399 343,287 - 193,395 ! 27,399 ■ 343,287 £20,458 j 37,097 466,185 ~ 208,118 I 51,530 j 443,311 2i5,122 ! 37,926 i 449,530 j ~ 215,122 37,925 I 449,530 - i I ~ ~ Totals 516,378 I t ' i 564,081 ! __ , I I 1 703,009 j 702,578 I 702,578 " 564,081 i ' - i 723,740 j - Grasses, fibres, and manufactures of. Totals G.B U. H. O. C. 1,168 8,982 I 1,271 I I I | 11,421 j I. 1 1,687 •161 I I 49,084 2,855 55.918 1,732 50,505 | 725 9.958 14,008 I 30,103 98,478 I 530 j 129,111 30,828 108,436 3,855 143,119 '.93 ! 12,657 | 5,356 j 18,406 1,134 j 1,577 297 4,173 ! 76,937 ' 89,574 20,558 74,257 i 444 [ 5,80(1 7,670 1,562 78,345 ' 96,951 28,563 79,992 I 2,899 ' 3,430 176 j 2,433 172,894 I 191 122 24,161 j 269,209" 3,490 i 5,490 — - 3,333 181,283 | 200,042 | 24,337 j 274,995 4,470 91,853 9.232 _ ■ 3 08,555 j 1,554 j 36,173 ! 11,410 | 49,137 ; I 6,517 ( 77,604 j 864 | 84,985 I 134,122 ] 8,071 133,777 12,274 Gren-ee, al! k ; „<ls cb <). c. 1,009 16.227 2,493 175.841 554 3,502 191.308 554 507 22,470 1,733 152.055 7,423 161,211 2,300 174.531 7,423 631 13,228 2,629 293,370 3,333 467 28,917 588 6,043 338,949 9,109 | 354,101 6,510 367,866 9,697 Totals 17,296 I 178,688 195,984 23,043 I ; '184,254 | 18,759 299,332 29,972 I i 384,073 J —- 40.465 170,752 — 1,75 1 — 212,968 Gunpowder snd other explosives. G. B. U. S. O. C. 19,444 111,171 | 017 19,444 111,471 047 21,977 138,051 1,705 21,977 118,051 1,703 40,465 170,752 1,751 48,459 ! 195,361 4,509 ! ~ 48,453 ! 195.361 I 4,509 : 82,169 | 186,970 9,401 273,510 j 82,169 186,970 9,401 - I I _ I To'aN ! 131,502 143,731 I 24S.329 j 248,329 j 131.562 - i - ! 141,731 212,968 - 278,540 !

79

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Gutta percim, India rubber, and manufactures of. G.B. U.S. O.C. 90,274 207,273 20,428 317,975 16,531 j 1,163,084 j 3,875 I 10,805 1,370,357 23,303 127,034 255.435 20,762 4,854 1,718,886 8,929 131,888 1,974,321 29,691 120,681 355,951 15,497 9,614 1,823,261 18,080 130,295 2,179,232 33,577 3,343,084 I 116,840 399,738 19,493 536,071 41,198 i 2,251,375 21,700 158,038 2,651,113 41,193 155,445 432,649 21,797 854 1,969,474 17,185 155,699 2,402,123 38,982 Totals - I 1,182,490 1,500,465 403,231 1,732,669 2.135,900 | 492,329 1,850,955 2,314,273 2,850,344 609,891 3,986,913 2,596,804 j ____ i I Hair and manufactures of G.B. U. S O.C. 4,890 11,797 1,895 6,848 89,634 1,622 48,104 11,738 51,431 8,517 8,473 18,338 2,604 16,745 26,366 1,294 25,218 44,704 3,898 8,915 14,393 8,121 17,990 35,823 1,758 55,571 26,905 50,216 3,879 8,209 15,880 1,613 18,405 39,415 2,356 26,63.4 55,295 3,969 6,324 13,584 1,379 2,824 28,585 1,998 9,148 42,169 3,377 Totals - 18,582 66,686 i 29,415 44,405 73,820 25,429 81,000 25,702 60,176 85,873 21,287 33,407 I 54,694 _ „ I I Hats, caps, and bonnets • G.B. U.S. O.C. 694,342 479,438 17,624 28,862 98,602 9,366 783,204 578,040 27,590 730,706 651,281 20.534 58,766 86,741 11,836 789,472 738,022 32,370 794,338 702,687 17,384 46,271 99,449 20,631 840.60P 802,136 88,015 878,891 736,106 22,425 1,637,422 69,982 108,442 23,241 201,663 948,873 844,548 45,686 893,501 738,708 29,554 63,735 168,803 33,082 957,236 907,511 62,636 1,927,383 Totals 1,191,404 | 137,430 1,328,834 1,402,521 157,343 1,559,864 3,514,409 166,351 1.680,760 1,889,087 — 1,661,763 265,620 i Hay U.S. 44,868 44,868 66,422 66,422 57,888 - 57,988 88,212 88,212 116.22S 116,328 ! Hides, skins, hoofs, horns, tips, and pelts. G.B. U.S. O.C. 148,202 2,134,430 144,398 2,427,080 148,202 I 2,134,430 ! 144,898 j 508,805 2,242,987 849,590 3,603,882 1 508,805 2,242,987 849,590 880,327 1,947,188 1,050,476 880,327 1,947,188 1,050,476 1,008,698 2,328,488 1,082,213 1,008,698 2,128,488 1,08-,313 680,730 2,435,411 1,004,302 680,730 2,435,411 1,004,302 4,120,448 - - - ■■'■-■ - Totals 3,487,030 - i ! 3,601,382 3,877,991 I 3,877,99! ~ 4,219,399 ! I 4,219,399 4,120,443 I I 1 I I Hops - G B. U. 8. .O.C. 13,871 46,222 23,931 13,871 46,222 23,931 25,657 46,136 28,185 25,657 46,136 28,185 99,978 81,843 101,133 11,280 21,843 101,138 U,i80 17,702 113,924 12,019 17,702 113,924 12,019 19,403 110,440 16,327 19,403 110,440 16,327 - Totals - - 99,973 - 134,256 134,256 143,645 ! 143,645 I 146,170 146,170 j 84,024 84,024 - - ~ Ink, writing and printing I 1 I G.B. U.S. O.C. 18,727 63,259 3,538 - 18,727 63,259 3,538 12,923 72,822 3,115 12,923 72,822 3,115 21,865 79,769 3,489 21.265 79,769 3,489 19,195 87,862 2,096 I 19,195 87,862 2,096 21,660 106,5174,552 132,729 _ - 21,660 106,517 4,552 132,729 - ! Totals 88,860 104,523 109,153 I 109,153 I 1 85,524 i - i I 85,524 88,860 1 - 104,523 j ! i Ivory and manufactures of ! G.B. U.S. O c. 367 69 31 16,659 1,142 8 584 16.826 1 201 8,665 4 19.011 5,895 9,009 19,01 i 5,947 9,013 36 49 I 88 16,859 15,930 5,025 16,395 16,959 5,091 '27 39 113 21,735 22,497 2,719 ■ '■ " 1 46,951 | 21,762 22,536 2,832 10 I 301 I 96 27.368 S8,«?_ 2,340 58,110 27.378 28,703 2,436 58,517 Totab - 307 26,385 37,445 179 26,692 56 33,915 33,971 151 37,294 47,130 407

80

A.—7

TABLE III. —No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c.—continued.

AB-IC--S. fit, o Value, 1897. Value, 1898. Valce, 1899. Value, 1900. Value, 1C01. Dutiable. Free. Total. Dutiable. | Free. Total. Dutiable. Jp r_e. Total. Dutiable. Free. Total. Dutiable. Free. Total. 3 35.661 228,450 1 27,735 i ' i I $ 35,661 228,450 27,735 34,477 279,314 27,658 341,449 I 34,477 279,314 27,658 $ 39,338 398,427 38,756 * 39,388 393,427 38,756 47,699 464,249 66,837 I $ 47,099 464,249 66,837 578,785 $ 67,814 422,146 50,260 I $ 67.814 422,146 50,260 Jewellery of gold and silver and other metals and imitations of. G. B. U.S. O.C. - i ~ — Totals - i | 291,846 291,846 ~ i 540,220 i , ' 540,220 341,449 i 471,591 471,521 578,785 1 __ i i " I ! Junk, old and oakum G.B. U.S. O.C - 14,203 14,149 1,918 14,203 14,149 3,918 30,270 1 23,799 21,432 1,822 23,795 | 21,132 j 1,822 20,364 16,951 1,273 20,364 16,951 1,273 82,670 91,872 990 32,670 21,372 990 20,621 29,629 2,524 20,621 29,629 2,524 -- I - ! - i ~ Totals - t - 30,270 j - 47,053 47,058 38,588 38,588 ! i 55,032 55,032 - 52,774 52,774 - ~ I Leather and manufactures of: Boots and shoes _j I _________ G.B. u.-s. O.C. 12,553 271,957 1 35,366 12,553 271,957 35,366 15,902 — 354,268 — 4,709 — 374,879 i — 15,902 S54.26S 4,709 | 20,237 430,161 3,233 20,237 430,161 3,233 9,S28 529,281 3,271 9,628 529,281 8,271 19,774 618,479 4,107 19,774 618,479 4,107 - Totals - I i 319,876 319,863 I 374,979 : ! 403,631 I - 453,631 542,180 542,180 642,360 642,360 | i I i Calf, kid, lamb and sheep skins, dressed and undressed. G.B. U.S. O.C. 12,244 336,752 19,517 12,244 336,752 19,517 17,939 | — 341,378 j — 26,330 ! — 17,939 341,378 26,330 36,281 254,658 24,399 315,838 ~ 36,281 254,658 24,399 21,331 233,629 19,547 274,507 - 21,331 233,629 19,547 34,1 60 166,817 18,822 214,799 I I 34,160 166.S17 13,822 214,799 I — Totals - I 368,513 385,647 j 274,507 i l 368,513 385,647 j I - I 315,338 i I ! Leather belting, all kinds. G.B. U.S. O.C. 39,800 32,575 39,800 32,575 57,375 40,637 57,175 I 40,637 58,520 28,516 97 I - 58,520 28,516 97 96,383 39,590 18 96,383 39.990 18 65,049 27,855 806 65,049 27,856 806 - . - Totals - 72.375 I I 72,375 97,812 97,812 ; 1 87,133 I 87,183 186,391 ~ I 136,391 93,710 ! - 93,710 i i . Sole-leather G.B. u. s. O.C. 1.923 117,145 I 1,923 117,145 4,969 222,642 4,960 I 222,642 | 16,613 132,223 106 16,613 132,223 106 34,034 139,780 12 34,034 139,780 12 9,652 67,010 9,652 67,010 - ~ ! - — I 1 Totals - 119,068 119,f68 227,613 1 227,611 148,942 148,942 j I 173,826 - - - 173,826 76,662 76,662 - I 1 1 ! I 1 I

A.-7

81

Other - G.B. U. S. O.C. 34,720 435,301 27,686 34,72« 435,301 27,686 60,509 488,471 33,348 i 50,309 ; 488,471 j 36,348 ' 69,143 j 585,591 33,333 69,143 585,591 35,333 61,188 667,410 23,831 81,188 667,410 23,»31 79,153 I — 79,153 570,728 | — 570,728 ! 50,637 — ' I 50,637 Totals - 497,713 ! 497,713 572,328 873,328 ; 690,067 690,067 752,429 i 752,429 700,518 | — 700,518 ! j ! i j 146,494 1,447,396 64,387 200,794 1,431,149 63,168 ! ! ! 207,788 | — 207,788 1,450,889 j — ! 1,450,889 69,372 I — i 69,872 Recapitulation, Leather and Manufactures of. G.B U.S. O.C. 101,246 1,193,730 82,569 101,246 1,193,730 82,569 1,377,545 146,494 1,447,396 64,387 200,794 1,431,149 63,168 222,564 1,610,090 46,679 222,564 1,610,090 46,679 ! - - - Grand Totals 1,377,545 j i 1,658,277 1,658,277 1,879,333 I 1,728,049 I 1,695,111 - 1,695,111 j 1,879,333 1,728,0-19 i i I ! Machine card clothing - G.B. U.S. O.C. 23,110 i 4,-24 j 1,083 | 23.110 4,724 1,088 15,213 2,577 3,154 | 15,213 3,577 ! 3,151 ! 36,933 3,463 485 38,933 3.463 485 23,239 I 5,505 ! 425 I 23,239 5,505 4_5 24,410 ] 7,404 3,105 I 24,416 7,404 j 3,105 i Totals - .1 28,9-17 j : i ~ 28,917 j 20,944 20,944 40,881 I - 40,881 29,169 - 29,169 34,925 | 34,925 ; j I I i i I I I i Marble, and manufactures of. G. B. U.S. O.C. 13,394 55,667 6,247 10 1,832 13,404 57,499 0,247 12,005 70,872 13,017 18,005 70,872 13,017 3,312 I 86,026 | 12,541 ~ 3,312 86,026 12,541 3,869 79,471 I 10,677 j 3,869 79,471 10,B77 4,750 ; 77,881 i 13,528 ' I 4,750 : 77,881 13,528 i - - __ Totals 75,308 1,842 I 95,894 101,879 I ! i 1 77,150 95,894 27,005 ; 240,177 | 8,790 j 62,555 531,361 28,743 95,894 - 101,879 I 94,017 94,017 96,159 96,159 Me f als and Minerals and Manufactures of: Brass and manufactures of. G.B. U.S. O.C. 35,125 267,492 23,175 325,792 21,030 j 178,337 5,327 56,155 440,829 28,502 "35,550 291,184 3 9,953 57,016 331,672 10,242 101,138 696,487 28,561 47,099 404,353 19,430 72,845 378,703 13,465 119,944 783,056 32,895 47,231 389,215 27,234 69,801 381,378 5,401 117,032 i 770,593 32,635 44,122 364,815 18,319 Totals 199,694 525,486 i 427,256 I 398,930 826,186 i 456,580 ! 920,260 346,687 275,972 I 622,659 — — 470,882 465,013 935,895 463,680 i I Copper and manufactures of. . ■ ; 67,210 644,210 I 3,129 | 71,227 722,546 4,613 G.B. U.S. O.C. 5,473 53,426 1,308 60,813 149,480 262 65,786 202,908 1,570 5,518 83,131 641 I 45,267 J 50,785 733,552 ] 816,683 251 ! 892 ; I 4,017 78,336 1,484 5,482 221,513 2,566 74,891 959,241 7,966 £0,373 1,180,754 10,532 4,590 148,914 3,861 35,548 909,935 509 40,138 1,058,899 4,370 Totals I - - 60,207 I 210,053 270,262 89,290 779,070 | 868,360 83,837 714,549 798,386 229,561 1,042,C98 1,271,659 157,365 946,042 1,103,407 Gold and silver and manufactures of. G.B. U. B. o. c. £0,365 202,558 43,220 50,365 202,558 43,220 44,517 206,194 46,581 I 44,517 206,194 ! 46,531 ; 51.623 233,026 57,571 I 51,623 233,026 57,671 54,854 234,661 49,630 — 51,834 — 234.601 — 49,630 63,012 236,«3d0 e 0,284 - 63,012 236,350 60,284 859,646 j ~ Tutals 342,320 I 339,145 I —. i 339,115 i 1 i I 296,343 296,143 297,242 297,242 I 342,320 339,046 -

A.—7.

TABLE III.-No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c.— continued.

82

Value, 1897. Value, .1898. Valise, 18U! Value, 1900. Value, 1901. AEMC-KS. a _ _ 5 Free Total. Dutiable. Free. Total. Dutiable. Free. total. Dutiable. Free. Total Di'liable. Dutiable. Free. Total. I Metals, Minerals, &c. — continued. Iron and manufactures of— Agricultural implements. * $ $ $ ? t * $ • $ j * t I * G.B. U.S. O.C. 6,106 598,909 13 6,106 598,902 13 9,151 ! 3,062,279 ! 84 i - 9,151 1,062,279 84 16,451 1,696,357 16,451 1,693,357 24,789 | 1,905,846 ! 854 i 24,789 1,905,846 854 22,0_5 1,903,470 2,818 22,0-5 1,903,470 2,319 - - - ~ - Totals - 605,021 605,021 1,071,514 I I I l 1,071,514 1,712,808 | '_______ , . ■ ' I I I 1,712,808 ! i I I 1,931,489 | ! I 1,931,489 I 1 _ - - 1,927,814 1,927,814 i ! ! i Machines and machinery, including lo'-omotires. G.B. U.S. O.C. 193,750 1,620,770 36,830 9,226 114,239 5,315 138,780 202,976 1,735,009 42,165 181,338 2,682,871 9,770 2,873,919 22,068 196,741 3,337 203,401 3,879,612 13,107 453,728 2,944,914 15,807 16,308 306,396 11 470,086 3,251,310 15,318 j 676,203 4,112,847 i 31,854 ! 43,720 708,608 217 719,923 | | 4,821,455 I 32,071 I 545,809 I 4,374,801 ] 39,083 4,959,693 83,205 j 1,532,351 5,380 1,570,933 579,011 5,907,15. 44,463 Totals 1,851,370 j | 1.980,150 222,141 I 3,096,120 3,413,949 322,715 | ! 3,736,664 ' ' 4,520.904 ] : i 752,545 | | 5,573,449 j 6,530,628 Other iron and steel, and manuf-ot_rer_ of. G.B. U.S. O.C. 1,649,081 4,360,357 315,634 6;325,072 818,734 992,278 27,628 2,467,815 5,352,635 343,262 1,734,374 6,908,223 813,481 306,589 j 3,345,504 40,147 I 2,040,863 | 10,253,727 353,631 1,855,642 8.531,904 354,401 369,285 3,528,898 59,378 1 2,234.927 ! 12,060,802 413,779 i 14,709,508 3,603,877 i 1,382,922 11,644,632 i 4,831,999 473,867 ] 316,181 13,722,376 ' 6,331,102 4,986,799 2,049,290 752,921 16,476,631 9,776,596 5,524,028 590,048 379,699 ! 239,391 2,302,211 15,300,624 619,090 Totals 8,955,581 3,692,240 j j j 12,648,221 10,751,947 3,957,561 22,053,478 j 12,205,585 I 6,516,340 18,721,925 3,838,640 j 8,163,712 Lead and manufactures of. G.B. U.S. O.C. 76,584 142,839 13,702 19.635 217 2,375 96,219 143,05 6 16,077 134,964 184.826 15,488 33,379 704 2,638 168,343 185.530 18,120 217,848 136,299 14,303 54,593 321 4,354 272,447 136,620 3 8,657 184,708 135,237 22,501 54,578 574 3,908 231,286 115,811 26,409 110,815 113,013 16,983 49,836 1,124 1.889 160,651 114,137 18,872 Totals 233,125 j 22,227 I 255,352 | i 333,278 30,721 | I 371,999 363,450 59,274 427,724 322,446 j 59,060 381.506 240,811 52,849 | 293,660 Tin and manufactures ot. G.B. U.S. O.C. 6,193 ! f 6,95 1 4,042 8S 1,438 256.358 59,126 887,6.31 333,309 63,168 8,585 69,139 3,214 80,938 1,237,-19 191,630 40,934 1,469,913 | 1,245,934 260,763 44,348 10,400 79,981 6,120 994,197 247,711 35,404 1,004,597 327,'392 40,524 8,750 88,775 4,217 1,804.208 887,424 125,081 1,*12,958 478,199 129,298 9,190 108,607 4,405 i ! 1,538.920 493,388 184,599 1,548,110 601,995 189,004 Totals i 77,186 I i I 1,196,922 1,874,108 I I 1.550,851 95501 1,277,312 1,372,813 101,742 2,336,713 2,418,453 122,202 2,216,907 2,339,109 i Zinc and manufactures of. G.B U.S. O.C. 857 4,071 187 31,592 26,729 83,256 32.479 80,800 33,443 147 1,845 971 48.900 26,891 54,095 49,047 32,736 55,066 896 8,101 627 47,931 S3.424 60,846 48,827 41.525 61,473 800 8,032 773 45,744 57,189 84,520 46,544 65,221 85,293 133 5,904 845 32,393 69,684 59,665 32,524 75,588 60,510 Totals - 5,145 J 91,577 j 98,722 j 6,963 i 129,886 i I __ , 136,849 9,624 142,201 151,825 9,605 j 187,453 j 197,059 6,882 161,740 168,622

A.—7.

12—A. 7

83

Miscellaneous metals and minerals and manufacture of. G.B. U.S. O.C. 78,966 270,730 24,187 3 00,968 754, s73 73,684 185,934 j 1,025,603 ] 95,871 ! 76,523 ! 532,829 36,200 | 87,892 260,654 29,751 164,415 782,483 65,951 83,460 029,781 49,992 78,847 223,838 48,276 162,307 853,619 j 98,268 | i 98,908 707,527 57,173 91,460 190.368 113,058 440,707 1,148,234 j 711,032 58,121 115,296 ' 03,658 590,288 j 1,453.898 I 888,3-18 72,851 470,223 185,909 1,187,801 362,214 Totals 373,883 933,525 1,307,408 3S7.297 703,233 j 350,961 1,114,194 I 803,010 j 817,036 1,733,984 025,552 I 1,012,849 ! ! ! I I ! Recapitulation, Metals, Minerals, and Manufacture of. G. B. U.S. O.C. 2,102,530 7,588,096 462,318 1,948,936 2,467,511 204,973 4,031,400 10,055,Ou7 067,291 2,230,567 ! 32,006,521 446,336 I j J,808,444 ; 5,004,853 379,943 ! 4,039,011 17,011,374 626,279 21,676,664 2,748,187 14,703,514 j 517,224 1,685,393 5,316,470 221,640 4,433,580 20,019,984 738,864 4,705,470 19,443.423 662,867 3,570,368 7,764,445 409,459 ! 8,273,838 ; 2,905,153 27,207,808 j 17,768,502 1,072,320 | 598,371 2,583,470 9,388,167 795,330 5,550,623 27,150,009 1,393,761 Grand Totals - 10,152,944 4,621,420 ! I 14,774,364 I 14,083,424 ! ; 6,993,240 j 17,968,925 7,223,503 25,192,428 24,811,760 11,744,272 30,558,032 j 21,332,026 12,769,027 34,101,053 I I ' Musical instruments I " 7,284 9,676 300,688 ! 308,197 82,435 | 94,773 390,437 ! 412,648 G.B. U.S. O.C. 6,889 181,313 73,092 6,889 183,313 73,092 7,071 233,816 ; 60,442 : : I ! — ! 7,071 235,816 60,442 11,201 261,761 92,334 - 11,201 261,761 92,334 365,298 j 7,284 j 300,6*8 ; 82,435 ! i 9,676 308,197 94,775 ! __ ~ Totals - 1 - 261,294 ! 261,294 j i s___ | 303,329 ! 365,296 j ! ! ! I : I i I 412,648 I 303,329 j i I • — i ! | .1 i _ i I I ' 390,407 I _ I _ i - Oils: Mineral oils G.B. U.S. O.C. 1,744 613,188 336 61 2,080 ! 613,249 j 1,501 621,863 721 64 2,222 621,927 1,351 I 681,092 j 248 786 1,593 681,818 4 527 I 739,039 ' 1 1,081 588 1,603 i 739,627 j 2,062 844,448 337 1,151 2,999 845,599 Totals - — - - i I 614,932 i l 397 624,149 682,447 j 968 683,415 ; 739,366 'I 1,669 I 741,235 ; 847,110 848.59S 615,329 \ ; 623,384 785 1 1,488 I ! I I i ___ i. i Fish oils G.B. U.S. O.C. 162 10,271 6,240 j 3 62 ! 103,308 113.941 1,274 7,647 9,333 18,154 1,274 7,647 65,187 1,-8* | 6,97* j «,5b8 1,284 6,988 ! 43,467 | 1,255 | 8,748 11,871 ~ 1.255 ' 8,748 .",23762 9,959 9,391 762 9,959 47,364 97,268 - 16 37,099 — 33,361 37,973 Totals 16,673 I' J, 97,268 1 55,954 55,954 i 74,108 14,624 37,115 51,739 j 21,874 38,361 ! 60,235 20,112 37,973 58,085 I : I i i i i ! Vegetable and animal oils. G.B. U.S. O.C. 303,121 345,612 43.322 12,809 53,316 | 5,8.4 69,949 315,930 396,928 49,146 762,044 222,604 397,280 54,921 13,151 54,429 1,553 69,133 335,755 451,709 56,474 743,938 386,430 371,350 53,845 9,648 54,419 1,250 396,078 425,76. 55,096 518,465 439,261 43.9S5 i 8,191 ! 526,659 82,011 j 521,272 2,149 ! 46,104 ! 479,416 571,748 47,402 53,657 99,984 281 533,073 671,732 47,683 Totals 692,055 : ' 674,805 811,625 ! 85,317 876,942 1,001,681 92,354 1,094,035 1,0E8,566 153,922 1,352,488 Recapitulation, Oils - I G.B. U.S. O.C. 305,027 969,071 49,562 13,145 51,377 103,092 | 818,172 1,020,448 152,654 225,379 1,026.790 64.154 13,872 ■ 54,493 57,507 239,251 1,081,283 121,661 389,065 1,059,43 4 60,217 9,890 55,161 38,349 398,955 1,114.575 98,566 520,247 1,187,048 55,826 i 9,275 | 529,522 82,599 j 1,269,647 40,510 j 96,336 482.340 1,426,155 56,793 53,994 ' 101,135 j 38,254 53,994 < 536,884 101,135 j 1,527.290 38,254 95,047 Grand Totals - 1,323,660 1,508,696 1,612,096 133,384 1,895,505 ' 167,614 1,491,274 *,323 I 125,872 1,442,195 103,400 1,763,121 1,965,788 193,383 2,159,171

A.—7.

Table III. —No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c.—continued.

84

5 Value, 1897. Value, 1898. Value, 1899. Va'.ue, 1500. Value, 1901. AxTICX-S. O Dutiable. Free. Total. Dutiable. Free Total. Dutiable. Free. Total. Dutiable. Free. Tola!. | Dutiable. Free. Total. Oilcloth- • G.B. U.S. O.C. 127,179 27,815 1,019 $ 127,179 27,815 1,019 168,326 48,412 4,688 $ 168,326 48,412 4,688 230,492 65,647 1,234 % . £30,492 65,647 1,234 289,451 69,880 1,533 $ 289,451 I 69,880 j 1,583 I 341,712 77,291 1,827 J 341,712 77,291 1,827 Totals ! i 156,013 1 ! I i - ! j 156,013 221,426 221,426 297,373 297,373 350,914 !__ 360,914 420,830 420,830 - i Optical, philosophical,and mathematical instruments. G. B. U. S. O.C. 14,571 3,530 j 401,758 10,823 j 19,854 4,573 18,101 I 112,581 23,927 | I 16,880 143,948 28,613 ! 5,636 13,364 4,993 22,516 157,312 33,606 15,733 166,566 31,842 2,987 24,479 8,201 18,720 191,045 40,043 16,346 196,388 22,756 7,201 17,493 7,849 23,847 213,881 | 80,605 ! 15,712 174,053 25,227 4,099 21,438 9,218 19,811 195,491 34,445 Totals 135,683 18,926 I 154,609 j 189,441 23,993 I 213,434 214,141 35,667 249,808 235,490 32,543 ! 268,033 214,992 I 34,755 249,747 I 1 Packages, including post office packages. G. B. U.S. O.C. 204,028 503 774,153 7,386 209,736 367 204,531 781,339 210,103 I 218,076 925,965 206,356 998 8,867 494 819,074 934,832 ! 306,850 1,360,756 265,386 1,391,977 243,311 676 12,169 176 265,962 1,204,146 243,487 304,851 1,386.153 273,934 946 I 17,053 j 140 | 305,797 1,403,206 274,074 335,794 1,734.428 243,726 155 23,707 102 335,949 1,758,135 284,888 Totals 1,187.917 ! 8.056 ! : 1,193,973 | : | 1,350,397 10,359 1,700,574 13,021 1,713,595 j 1,964,938 18,139 1,983,077 2,354,948 24,0.4 2,378,972 ! : i i ! i Paintings, oil and water colours. G.B. U.S. O.C. 7,090 j 113,546 43,441 | 179,490 | 5,825 i 16,359 120,636 222,9.31 22,184 365,751 27,219 9 1,258 22,799 141,276 104,474 34,788 34,567 131,693 126,046 57,366 30,629 118,033 18,599 361,896 155,977 55,120 392,525 | 274,010 j 73,719 | 41,263 138,295 19,852 235,978 101,200 102,339 277,241 j 239,495 I 122,191 | 50,115 148,743 32,844 172,341 : 232,995 17,247 222.456 381,738 50,091 Totals 56,356 i 309,896 173,829 315,105 167,261 572,993 740,254 199,410 439,517 | 638,927 231,702 422,583 654,285 i i ! Paints and colours G B. U.S. O.C. 210,234 i 38,321 184,659 | 45,703 124,552 j 10,966 248,555 230,362 135,518 202,793 243,805 212,595 50,858 j 39,338 | 9,7.81 j 353,151 283,143 332,376 255,967 j 190.674 ! 329,962 I 62.597 42,724 6,198 318,564 233,398 336,160 888,1-2 311,743 275,586 330,533 59,073 41,765 8,421 370,816 317,351 338,954 224,202 387, 112 157,529 92,793 52,773 12,106 316,995 439.885 169,635 Totals 519,445 j 94,990 614,435 659,393 99,477 758,670 776,603 111,519 917,862 109,259 1,027,121 768,843 157,672 | 926,515 i — i 382,018 4 I 1,320,873 — 101,037 G.B. U.S. O.C. I Paper and manufactures of 339,368 686,172 86,318 95 664 | 384 229,463 686,836 86,642 1,002,941 230,345 822.983 82,576 500 28 330,345 828.483 82,604 248,745 911,896 102,723 248,745 911,896 102,915 259,763 1,042,504 105,235 259,762 1,043,045 105,402 j 382,018 1,320,869 | 101,037 j 192 541 107 Totals 1,001,858 1,0-8 1,135,904 538 j 1,136,432 ! ! 1,263,364 j 192 1,263,556 708 1,407,501 1,403,209 1,803,924 4 ! 1,803,928 . i

A.—7.

85

Pickles, sauces, capers, &c. G.B. U.S. O.C. 87,098 33,387 4,949 - - 87,098 33,387 4,949 95,482 52,198 5,798 - - 95,482 52.198 5,798 118,724 63,547 8,616 138,724 63,547 8,016 126,226 86,907 10,186 126,226 86,907 10,186 154,753 77,183 12,784 154,753 77,183 12,784 - Totals 125,434 125,434 153,478 J - 153,478 190,887 190,887 223,319 223,339 244,720 244,720 Plants and trees - G.B. U.S. O.C. 1,394 37,900 1,028 4,378 21,436 17,847 5,772 79,336 18,875 1,615 20,149 3,477 3,516 21,514 19,308 5,131 41,663 22,785 3,773 13,318 9,080 3,400 22,134 27,037 7,173 33,452 36,117 4,300 15,718 8,492 4,230 17,858 37,460 8,530 33,576 45,952 1,940 27,890 7,265 2,674 25,328 36,966 4,614 53,224 44,231 Totals 60,3.2 43,661 103,983 25,241 44,338 69,579 24,171 52,571 76,742 28,510 59,548 88,038 37,101 64,968 102,069 Precious stones - G.B. u. s. O.C. 9,038 4,439 17,100 281,780 32,238 181,953 290,818 36,677 199,113 14,540 7,963 21,514 227,002 21,695 114,735 241,542 29,658 330,249 17,925 ! 9,746 | 16,779 ; 237,252 26,226 154,080 255,177 35,972 170,859 32,512 15,647 14,142 339,969 52,067 175,597 372,481 67,714 189,739 23,455 ! 9,883 34,215 397,625 ! 75,639 214,225 421,080 95,522 248,440 Totals 30,037 495,971 5--6,60S j 44,017 363,432 407,449 44,450 ! 417,558 462,008 02,301 567,633 629,931 - 77,553 687,489 j 765,042 Provisions G.B. U. S. O. c. 23,913 055,140 22,374 — . 23,331 656,597 22,374 47,137 1,115,061 36,316 1,230 47,197 1,416,291 30,310 36,842 1,618,078 51,573 i i 63 ; 3,799 ' 36,305 1,621,877 51,573 58,548 1,795,798 50,677 3,280 58,518 1,737,078 50,67 7 38,993 2,254,630 49,418 — 33,993 2,553 2,257,183 49,518 1,457 Totals 701,-127 1,457 702,834 1,498,574 j 1,230 1,499,804 1,706,493 3,862 1,710,355 143,995 143,995 130,046 130,046 24,520 24,520 1,905,023 1,280 ! 1,506,303 [ | 2,343,141 j l~ : 2,558 j 2,345,694 67,748 1 67,748 133,075 | 133,075 25,101 | 25,101 225,924 225,924 j I ! ~ I Rags for manufacture of paper. G. B. U.S. O. C. 48,614 138,398 4,085 48,614 138,398 4,6*5 191,697 - 144,138 171,395 23,989 144,138 171,399 23,389 _ i - I 119,036 109,480 18,327 119,036 169,480 13,327 ~ - - I Total* — 339,526 339,526 j - 191,697 298,561 | 298,561 I i - 306,843 306,843 _ ! Rennet G. B. U.S. O.C. - 037 36,302 7,476 637 30,302 7,476 6,141 46,S93 9,938 6,141 46,899 9,938 516 ! 516 4«,452 i 46,452 8,010 j 8,010 | 445 45,686 33,573 445 45,686 13,573 1,879 50,107 16,064 1,879 50,107 16,064 - - I Totals - 44,415 44,415 62,978 62,978 54,978 54,978 59,704 59,704 68,050 68,050 Salt G.B. U.S. O.C. 370 33,082 18 241,259 10,712 60,146 241,629 43,794 60,164 107 32,125 560 216,420 22,557 54,427' 216,533 54,6S2 54,987 312 32,525 2 212,885 8,423 46,212 213,197 4U.943 46,214 30,180 241,242 7,700 46,311 241,242 37,880 46,311 46 33,373 668 289,193 14,114 36,580 289,239 47,487 37,248 Totals 33,470 312,117 345,587 32,792 293,410 326,202 32,839 267,520 300,359 30,180 295,253 325,433 34,C87 339,887 I 373,974 ! I 'I ! | Seeds and roots - G.B. U.S. O. c. 11,864 624,974 14,362 34,434 6,014 21,808 4 6,298 530,988 35,670 9,291 419,144 12,657 32,131 73,919 21,168 127,278 41,482 493,063 33,825 568,370 7,991 342,116 17,758 26,112 1,073,898 83,352 31,103 1,416,014 101,104 10,136 460,415 10,291 108,374 1,279,801 55,643 118,510 1,740,216 65,934 6,830 517,047 18,272 70.994 20,696 77,824 1,235,135 38,968 Totals 551,200 61,756 612,956 441,092 480,812 1,443,818 | 1,924,660 I 542,149 j | 780,078 1,322,227 1 367,859 1,183,362 1,551,221

86

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Table III. —No 17. Statement of the Values of the Principal and Other Articles entered for Consumption in Canada, &c.-continued.

AltTICX-S. pj o Dutiable. Valne, 1897. Free. Total. Dutiable. Value, 1898. Value, 1899. Value, 1900. Value, 1901. Free. Total. Dutiable. Free. Total. Dutiable. Free. Total. Dutiable. Free. Total. $ 383,243 1,803,275 47,212 383,248 1,803,275 47,212 $ t 488,935 2,324,457 15,883 488,935 2,324,457 15,288 $ 458,888 2,183,861 163,207 458,388 1 2,183,861 163,207 $ 657,344 2,385,724 23,343 657,344 3,885,724 38,313 $ 801,538 2,915,603 23,489 801,588 3,915,608 23,489 Settlers' effects - G.B. U. o. - . - Totals : 1 2,233,730 2,233,730 I 2,828,675 2,828,675 2,805,956 3,065,410 8,065,410 3,740,630 3,740,680 2,805,956 Silk and Manufactures of: Clothing, N.O.P. - I ! G.B. U.S. O.C. 207,395 14.763 80,340 " 207,395 14,763 30,340 252,498 178,474 23,937 37,406 ~ 178,474 23,937 37,406 229,817 172,180 38,199 33,856 - 172,180 38,199 33,856 157,620 42,842 43,656 157,620 42,848 43,656 135,018 65,741 48,902 - - 135,018 65,741 43,908 Totals - 252,498 i I I 229,817 I - 244,235 - 244,235 244,118 244,118 244,661 344,661 Dress and piece goods G.B. U.S. O.C. 514,843 52,778 198,260 765,881 514,843 52,778 198,260 761,899 78,485 476,341 761,099 78,485 476,341 1,040,489 120,960 944,933 2,106,382 - 1,040,459 130,960 944,933 1,325,017 120,067 980,765 1,325,017 120,067 980,765 1,308,068 105,640 946,045 ~ 1,308,068 105,640 I 946,045 i I — I - Totals 765,881 I 1,316,725 I 1,316,725 ! - 2,106,382 2,425,849 2,435,849 2,359,753 - 2,359,753 i I Handkerchiefs - G.B. U. S. o. e. 32,425 1,934 47,319 32,425 1,9.14 47,319 30,426 870 37,746 30,426 870 37,746 69,042 31,834 861 57,159 31,834 861 57,159 41,796 2,938 59,258 41,796 2.93S 59,258! 43,261 912 73,1.42 43,361 912 73,142 - Totals 81,678 j - 81,678 69,042 1 89,854 89,854 103,992 103,992 116,315 116,315 I - - I ! I i I i Ribbons G.B. O.C. 351,723 38,551 111.983 851,723 38,551 111,963 423,157 44,984 184,644 - I 423,157 44,964 184,644 496,048 34,585 313,957 844,590 496,048 34,585 313,957 448,044 28,408 220,315 448,044 28,408 220,315 376,112 34,156 206,929 876,112 84,156 206,929 - - Totals 652,765 ! 617,197 ' 637,197 502,237 j 502,237 652,765 844,590 696,767 696,767 - - I I All other G.B. U S. O.C. 289,029 42,748 63,63 I 785 150,425 276 290,414 193,173 53,910 259 842 49,408 72,915 135 240,207 1,542 259,977 289,615 74,457 321,877 51,206 119,002 647 276,889 1,496 322,524 328,095 120,498 270,578 65,925 75,007 — 270,573 289,725 355,550 1,428 76,433 245,573 49,305 93,219 388,097 36 277,199 286 245,609 j 326,504 ] 93,50.'. Totals 151,486 537,497 : 382,105 I. 241,884 I 624,049 291,153 702,563 277,521 665,618 386.03 3 492,085 279,032 771,117 411.410 | | ___! i |

A.-7.

87

I Recapitulation, Silk and Manufactures of. G. H. U.S. O.C. 1,398,015 150,774 441,516 785 150,425 276 1,396,800 301,199 441,792 1,653,798 197,664 799,052 135 240,207 1,512 241,884 i 1,653,933 437,871 800,594 2,062,428 245,831 1,468,907 647 •_76,889 1,496 2,063,075 522,700 1,470,403 2,243,055 260,080 1,379,001 289,725 1,428 2,243,055 , 549,805 ! 1,380,429 j 2,107,032 255,754 1,363,237 36 277,199 286 2,107,068 532,953 1,363,523 Grand Totals 1,988,305 151,486 2,139,791 2,650,514 2,892,398 3,777,146 279,032 4,056,178 3,882,136 291,153 4,173,2S9 3,726,023 277,521 4,003,541 Soap, all kinds - G.B. U.S. O.C. 106,345 131,320 24,664 262,129 106,345 331,120 24,664 120,550 141,586 25,886 120,550 141,586 25,886 188,068 165,777 30,329 188,068 165,777 30,329 230,131 179,604 36,400 230,131 179,604 30,400 124,430 204,977 35,306 124,430 204,977 35,306 - ; - - Totals - 1 ~ i 288,002 : 283,022 ! 384,174 384,174 446,135 446,135 _. 262,129 i - -- 364,713 - 364,718 Spices G.B. U.S. O.C. 87,292 54,135 9,019 i 87,292 54,135 9,019 83,146 94,236 13,561 83,146 94,236 13,561 90,688 76,013 24,793 90,688 76,013 24,798 114,348 79,043 17,127 114,348 79,043 17,127 135,264 82,914 30,727 135.264 62,914 30,727 \ - Totals - _ I 150,446 150,446 ! 190,943 190,943 191,499 - - 191,499 210,518 210,518 223,905 - 223,905 i Spirits and wines 504,348 40.340 767,558 618,240 52,017 894,702 618,240 52,017 894,702 782,416 50,062 1,089,041 G.B. U.S. O.C. 444,319 41,083 831,370 444,319 41,033 821,370 504,348 40,340 767,558 697,255 48,237 996,169 697,255 48,287 996,169 782,415 50,062 1,089,041 ~ - Totals - 1,306,728 1,306,722 1,312,246 - 1,312,246 1,564,959 1,564,959 1,741,711 1,741,711 1,921,518 1,921,518 - ~ Starch - G.B U.S. O.C. 20,973 44,186 1,432 20,973 44,186 1,432 19,573 54,909 780 39,573 54,909 780 22,542 55,748 3,197 22,542 55,748 1,197 20,545 50,151 2,071 20,545 30,151 2,071 20,939 40,364 2,640 20,939 40,364 2,640 ~ - Totals - 66,591 66,591 75,262 75,262 79,487 ! ; - 79,487 72,767 72,767 63,943 - 63,943 Stone and manufactures of G.B. U.S. O.C. 8,786 49,537 7,904 53,344 179,299 10,381 35,465 77,689 3,764 1,896 31,984 4,326 37,861 109,673 8,090 31,897 77,651 3,867 2,896 51,097 6,825 34,293 128,748 10,692 48,470 105,407 1,929 1,199 46,190 5,310 49,669 151,597 7,239 46,341 132,153 2,ti30 855 55,626 2,461 47,196 187,779 5,051 50,558 129,762 2,477 Totals - 116,918 38,206 155,124 112,915 60,818 173,733 155,806 52,699 208,505 181,084 58,942 240,026 182,797 60,227 243.024 Sugar, molasses, &e. 200,655 738,892 4,666,762 233,399 862,240 5,700,166 233,399 862,251 5,700,166 643,185 988,887 7,684,460 G.B. U.S. O.C. 66,869 975,492 7,893,528 34 184,916 56,859 200,665 975,526 I 788,364 7,628/489 j 4,666,762 " 28 11 163,251 1,708,338 6,731,532 659 1,270 163,251 1,708,997 6,782,802 648,185 988,538 7,684,460 349 - - Total* ■ 8,560,824 j 5,605,791 8,425,874 184,950 28 6,605,819 6,795,805 13 6,795,816 8,603,121 1,929 8,605,050 9,816,183 345 9,316,532

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88

Table III. —No. 17. Statement of the Values of the Principal and other Articles entered for Consumption in Canada, &c. — continued.

•r Value, 1897. Value, 1898. Value, 1899. Value, 1900. Value, 1901. Articles. _• a Free. Total. Dutiable. Free. i L Tai&L Free. Total. Dutiable. Free. Dutiable. Dutiable. Total. Dutiable. Free. Total. Tea G.B. U.S. O.C. 2,141 39,394 455 1,136,536 2,131,832 1.138,677 39,394 2,132,287 1,588 58,957 450 665,649 17 1,994,533 667,232 53,974 3,994,983 1,636 142,216 32 786,737 2,581,117 8,367,854 $ 788,373 148,316 2,581,139 3,511,728 $ 904 38,660 60 747,432 2,816,971 748,886 38,660 3,817,031 2,554 20,753 310 61)5,445 2,467,734 $ 687,999 20,752 2,468,044 Totals - 41,990 3,268,368 8,310,858 60,990 3,660,199 2,721,185 143,874 3,511,728 39,624 3,564,403 3,604,027 23,616 8,153,179 8,176,795 ! Tobacco and manufactures of. G.B. U.S. O.C. 20,244 81,279 231,156 2,032 2,030,568 30,241 22,376 3,061,847 351,397 30,679 498,131 154,981 1,224 30,679 499,355 154,981 47,830 69,481 168,835 286,136 1,056 1,878,725 4,659 48,876 1,948,206 173,494 i 48,876 1,948,206 173,494 61,040 98,232 237,417 1,500,673 7,438 61,040 1,598,904 344,855 71,356 72,395 390,399 1,708 1,720,589 2,329 73,064 1,792,984 292,728 Totals - 282,679 1,884,440 2,170,5761 2,170,576 2,158,770 2,052,841 9,335,580 683,791 1,224 685,015 396,689 1,508,110 1,904,799 484,150 1,724,626 Turpe-sth.e G.B. U.S. O. C. 16 153,465 2 16 153,465 2 9,173 203,027 16 2 73 9,175 202,100 16 29 389,254 — 29 339,818 15 859,794 3 15 860,145 3 840 308,351 4 20 443 260| 308,894) 4 564 351 - I ~ Totals - 153,483 153,483 211,316 75 811,291 229,283 664 229,847 859,813 351 360,163 308,495 463 308,958 I Umbrellas, parasols, sunshades, &e. G.B. U.S. O.C. 101,786 3,891 6,102 101,786 3,891 6,108 107,084 3,904 5,919 107,084 8,904 5,919 120,550 6,467 4,228 - 120,550 6,467 4,828 100,380 3,801 3,114 100,830 5,801 3,114 67,186 8,297 5,185 I 67,183 8,297 5,186 80,665 Totals - 111,729 ~ 111,739 116,907 - 116,907 131,245 - 131,245 108,645 108,645 80,665 - I L Varnish, japans, &c. G.B. U.S. O.C. 24,910 85,457 354 175 874 85,085 85,831 354 23,550 50,495 248 154 154 23,704 50,649 246 31,039 54,382 144 48 237 31,087 54,619 144 25,587 59,3 11 281 127 294 25,714 59,607 381 36,166 80,755 208 35 336 86,191 31,081 208 — Totals — ■ 60,731 I 74,291 74,599 85,565 285 85,850 117,475 549 61,870 308 85,181 481 85,602 117,124 851 ! Vegetables G.B. U.S. O.C. 19,063 171,846 80,172 19,063 171,846 30,178 23,655 232,454 83,188 83,655 232,454 83,188 16,434 275,818 43.434 16,484 275,818 43,434 19,705 329,925 52,800 19,705 339,925 52,800 31,081 370,419 89,639 i 31,081 370,419 39,639 ~ ~ i - Totals 221,081 - 221,081 289,297 - 389,297 335,186 335,186 402,430 402,480 441,139 441,139

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Watches and parts of G.B. U. S. O.C. 5,997 i 418,380 i 33,607 I 5,997 418,380 33,607 6,636 392,321 51,823 6,636 j 392,321 1 51,823: 13,947 348,259 65,049 - 13,947 848,259 65,049 8,784 406,633 84,601 8,784 406,633 84,601 10,541 511,019 102,385 10,_41 I 511,01 9 i 10_,88- I Totals 457,984 457,984 450,780 450,780 j 427,255 427,255 500,018 | 500,018 623,945 623,945 j - ~ I i 1 Wood and manufactures of. G.B. u. s. O.C. 70,280 808,1 53 71,270 11,677 2,036,576 1,930 81,963 2,844,735 73,206 53,090 824,318 75,222 5,847 2,535,786 1,945 58,937 3,360,104 ! 77,167 | 51,982 983,738 105,116 1,177 2,919,433 8,998 53,159 3,903,1.71 114,114! 76,781 1,200,025 95,598 1,372,404 10,664 I 3,606,549 6,826 87,445 4.806,574 102,424 74,425 1,229,065 123,967 15,528 3,481,338 12,749 3,509,615 89,963 j 4,710,403 | 136,718 Totals ' 952,630 | 3,496,208 i 1,140,836 2,929,608 4,070,444 3,624,039 4,996,143 j 1,427,457 4,937,072 949,721 2,050,183 2,999,904 2,543,578 I Wool and manufactures of. G.B. u. s. O. c. 5,576,859 218,396 1,330,493 7,125,748 231,470 528,238 170,837 5,808,329 746,634 1,501,330 6,221,836 252,242 1,511,788 1,282,265 323,083 463,793 7,454,101 ' 7,686,366 575,275 j 428,631 1,975,581 ! 1,688,206 755,680 520,684 229,663 8,442,046 949,315 1,917,869 7,787.929 359,986 1,653,650 904,194 449,892 400,626 8,692,123 809,878 2,054,276 ! 8,061,459 370,453 1,512,193 645,351 | 424,497 | 343,496 8,706,810 794,950 1,855,689 Totals - 930,545 8,056,293 7,985,866 2,019,091 10,004,957 j 9,803,203 1,506,027 11,309,230 9,801,565 j 3,754,712 11,556,277 9,944,105 1,413,344 11,357,449 All other goods G.B. u. s. 0. c. 364,086 843,957 301,618 ! 139,866 402,170 27,324 503,552 1,246,127 328,942 458,662 1,278,715 361,453 173,997 451,366 35,901 632,659 1,730,081 397,354 582,881 j 1,548,429 436,416 | 2,567,726 204,259 545,010 48,701 797,970 j 787,140 2,093,439 485,117 625,025 2,054,409 451,380 263,578 888,603 771,709 2,826,118 45,199 496,579 1,080,480 4,211,300 749,572 1,896,949 528,063 135,647 972,959 75,969 885,219 2,S69,908 604,032 4,359,159 j Totals - 569,360 661,264 2,760,094 3,305,696 3,130,814 3,174,584 1,184,575 i 1,509,661 2,079,021 ! 2,098,830 1 Values of total imports of merchandise. G.B. u. s. o. c. £0,217,422 30,482,509 15,520,834 9,183,706 20,540,833 4,672,403 29,401,188 57,023,342 20,193,297 22,556,479 38,063,960 14,004,649 9,488,982 36,760,963 5,434,129 32,043,461 74,824,923 19.438,778 27,521,508 44,471,824 17,439,840 9,409,815 43,995,349 6,508,123 36,931,323 88,407,173 23,947,903 31,561,756 53,897,561 18,887,478 12,718,227 44,279,983 48,382,610 302,080,177 7,259,240 26,146,718 08,160.083 172,506,878 31,701,654 33,600,278 20,607,824 11,118,341 53,549,047 7,063,550 42,819,995 107,149,82 "27,731,874, Totals - 66,220,765 40,397,002 106,017,827 74,625,088 51,682,074 126,307,162 89,433,172 59,913,287 149,348,459 104.346,795 105,969,756 71,730,938 177,700,694 i Coin and bullion - G. B. U. S. o. c. 11,000 4,625,699 39,495 11,000 4,625,099 39,495 457,456 3,880,667 52,721 457,456 3,880,667 62,721 - 128,800 4,539,993 36,341 128,800 4,539,993 30,341 I 509,747 509,747 7,764,201 7,764,201 23,490 23,490 198,169 8,335,883 3,442 3,537,294 198,169 3,335,683 | 3,442 " - - Totals - 4,070,194 4,390,844 4,390,844 j ! ! ! ! i " I 4,705,134 4,705,134 8,297,438 8,297,438 I 3,537,294 4,676,194 ~ I Recapitulation —Value of total imports eutered for consumption, including coin and lmlliou. G. B. u. s. o. c. 20,217,422 30,482,509 I 15,520,834 9,194,766 31,160,532 4,711,358 29,412,188 01,049,041 20,232,752 22,556479 38,063,960 14,004,649 9,944,438 40,641,630 5,486,850 32,500,917 73,705,590 19,491,499 27,521,508 44,471,824 17,439,840 9,538,615 ' 48,535,342 1 6,544,404 37,000,123 93,007,100 23,984,304 31,561,756 ; 53,897,561- i 18,887,478! 13,227,974 44,789,730! 31,701,654 55,946.817 ! 109,844,378 53,000,278 7,282,730j 26,170,208 20,667,824 11,316,510. 56,884,730 ! 7,066,992 j ' 43,018,164 ' 110,485,008 j 27,734,816 G«-and Totals - I 56,072,9181 I 89,433,172 j 64,618,421 134,051,593 j 66,220,765 ! 45,078,256 1.11,294,021 I 74,625,088 i 130,698,006| 104,346,795 76,457,521' 180,804,316 j 105,969,756 ! 75,268,232 181,237,988

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90

TABLE IV. Value of Exports of various Classes of Goods to the United Kingdom, the United States, and to "Other Countries," during each of the Years ended 30th June 1897 to 1901.

Note.—Conversions of dollars into £ sterling have been made at the cate >f 4s lf-|«f. per dollar. 18S7. 1 1898. Years i Years ended 30th-Ji ended 3( 1899. itie. 1900. 1901. 3 $ $ $ Products of the mines : United Kingdom United States Other countries - i 356,169 10,774,239 419,679 215,402 14,052,237 426,415 154,216 12,871,696 542,673 193,851 23,878,781 705,707 882,274 38,501,207 1,147,833 Total - 11,550,087 14,694,054 13,568,585 24,778,339 40,531,314 Products of the fisheries : United Kingdom United States Other countries -" 4,371,937 3,068,241 3.128,910 4,824.270 2,993,295 3,156,412 3,612,567 3,194,895 3,143,842 4,075,226 3,707,294 3,442,346 3,113,376 4,230,533 3,387.090 Total - 10,569,088 10,973,977 9,951,304 11,224,866 10,730,999 Products of the forest: United Kingdom United Stales Other countries - 14,224,927 15,442,768 1,764,599 16,167,610 9,337,587 1,537,875 15,857,460 9,934,059 2,322,776 15,334,09,1 12,818,389 1,801,609 15,912,474 12,205,764 2,157,942 Total - 31,432,294 27,043,072 28,114,295 29,954,089 30,276,180 Animals and animal produce: United Kingdom United States Other countries 34,373,936 5,393,929 600,395 41,1-59,670 4,572,801 | 403.664 42,582,490 4,903,766 538,558 50,812,612 5,520,534 963,521 49,686,767 5,618,606 993,909 Total 40,368,260 46,136,138 48,024,814 57,296,667 56,299,282 Agricultuial products: United Kingdom United States Other countries - 20,058,758 3,019,734 2,615,775 37,549,818 1,3.30.619 4,847,342 31,144,302 1,374,436 4,883,176 31,496,668 2,227,548 4,745.745 28,840,253 3,210,827 6,516,972 Total 25,694,267 43,727,779 37,401,914 38,469,961 38,568,052 Manufactures: United Kingdom - United States - Other countries - 3,733,791 3,762,749 2,803,804 5,016,993 3,796,940 3,056,918 5,606,015 4,017,526 3,200,431 5,741,905 5,954,130 3,815,546 6,859,123 6,350,619 4,541,762 Total - 10,300,344 11,870,861 12,823,972 15,511,581 17,751,504 Miscellaneous articles: United Kingdom United States Other countries 107,984 472,13-2 16,117 65,055 371,025 19,864 129,931 266,462 40,073 81,615 394,718 64,208 34,689 289,439 27,838 Total 596,233 455,944 436,466 540,541 351,966

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Table IV.—Value of Exports, &c.

Table V. Statement of the Canadian Duties on (1) Foreign and (2) United Kingdom Goods of the Class we send to Canada, showing in each Case the Difference between the Duty on Foreign Goods and on our Goods.

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Years ended 30th June. 1897. 1898. 1899. 1900. 1901. Coin and bullion — United Kingdom United States... Other countries 9 3,492,550 $ 39 4,620,441 2,658 » 4,874 4,011,151 $ 400 8,656,118 650 • 1,975,235 3,100 Total ... 3,492,550 4,623,138 4,016,025 8,657,168 1,978,335 Estimated amount shortreturned at inland ports and exported to the United States 3,947,130 4,627,730 4,559,530 5,461,511 TotalUnited Kingdom ... United States •••]_? Other countries ... j Z 77,227,502 15,868,665 49,373,472 10,145,234 11,349,279 2.332.043 104,998,857 21,575,108 45,702,678 9,390,961 13.451,148 2,763,934 99.091,855 20,361,340 45,133,521 9,274,011 14,671,529 3,014,698 107,736,368 22,137,610 68.619,023 14,099,799 15,539.332 3,193,014 105,328.956 21,642,936 72.382,230 14,873,061 18.776,446 3,858,174 Grand totals ... j j 137,950.253 28,345,942 164,152,683 33,730,003 158,896,905 32,650,049 191,894,723 39,430,4:-'3 196,487,632 40,374,171 * After 1899-1900 no estimate was made of the amount short-re] iorted in ex >rts to the United States.

Articles. Customs Duties. Bates under j R H ? te * " nd f er th , e . . the General Tariff. Bntish Preferential Tariff. Customs Duties. Difference in Favour of British Goods. Carpets — Brussels ... ... ... Ad val. Tapestry ... ... ... „ Cement, Portland ... Per 100 lb. Clothing, made waterproof with Ad val. indiarubber Cotton manufactures — Sewing and crochet thread : In hanks, 3 and 6 cord ... „ Other kinds ... ... „ Curtains ... ... ... „ Fabrics : Grey, unbleached ... ... „ White or bleached ... ... „ Printed, dyed, or coloured ... „ Handkerchiefs ... ... „ Velvets and velveteens ... „ Cutlery ... ... ... „ Earthen and china ware— White granite or ironstone ware, „ OC. or cream-coloured ware China and porcelain ware ... „ Earthenware tiles ... ... „ Other manufactures ... ... „ Fancy goods— Braids, fringes, tassels, &c. ... „ Laces, lace-collars, lace-nets, and „ nettings Fur skins, wholly or partially dressed „ 35 per cent. 35 12* cents 35 per cent. 15 25 35 25 25 35 35 30 30 23* per cent. 23* . H* cents 23* per cent. 10 16| m „ 16* „ 16* 23* 23* 20' 20 llf per cent. Hf „ 4* cents llf per cent. 5 Hf „ 8* „ 8* . 11* "8 It 1 1 2 1X S it 10 10 30 20 10 30 35 30 20 m ,t 20 io llf . 10 „ 35 35 23* 23* llf ,1 llf „ 15 10 5

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Table V.—Statement of the Canadian Duties, &c. — continued.

Customs Duties. Articles. Rates under the General Tariff. Bates under the British Preferential Tariff. Difference in Favou: of British Goods. Glass, common or window ... Ad. val. Gloves and mitts of all kinds ... „ Glycerine — If imported for the use of explo- „ sive-manufacturers in their own factories Otherwise ... ... ... „ Hats— Beaver silk, and felt ... ... „ Straw ... ... ... „ 20 per cent. 35 „ 13* per cent. 23* 6* per cent. 11* 10 „ 6f „ *_ it 20 „ 13* 6* 30 „ 30 „ 20 20 10 10 Hemp, flax, and jute manufactures — Bags and sacks ... ... „ Carpeting, rugs, or matting ... „ Damask of linen, stair linen, „ diaper, napkins, and other like articles of linen Handkerchiefs ... ... „ Towels ... ... ... „ Linen, duck, canvas, huckabacks, „ and other linen manufactures Linen thread" ... ... „ Jute cloth — Not otherwise finished than „ calendered or blended Not calendered or finished in any „ 20 25 30 „ 13* 16* 20 6* 8* 10 35 „ 30 25 „ 23* 20 16* 11* 10 8* 25 16* 8* 10 6* 3* Free. Free. way Metals— Iron or steel — Canada plates, galvanised sheets „ and rolled sheets of iron, coated with zinc or other metal Tin plates and sheets ... Tin, in blocks, pigs, or bars Mustard, ground ... ... Ad. val. Oil, linseed (raw or boiled) ... „ Oilcloth and linoleum ... ... „ Pickles and sauces ... ... „ Salt— If for the Gulf or sea fisheries ... Otherwise — In bulk ... ... Per 100lb. Silk-manufactures — Fabrics, velvets, and velveteens ... Ad. val. Clothing ... ... ... „ Soap, common, or laundry Per pound Spirits —whisky ... Per proof gall. Tobacco-pipes ... ... ... Ad. val. Umbrellas, parasols, and sunshades „ Woollen manufactures— Yarns — Costing 30 cents per pound „ and over, imported on the cop. tube or in hank by woollen - manufacturers for use in their factories Other kinds ... ... „ Cloths and coatings, and tweeds „ Shawls ... ... ... „ Beady - made clothing, flannels, „ hosiery, blankets, and other manufactures 5 per cent. Free. Free. 25 per cent. 25 30 „ 35 „ Free. 5 cents 30 per cent. 35 „ 1 cent $2 40 cents 35 per cent. 35 3* per cent. Free. Free. 16f per cent. 16$ 20 23* Free. Free. 20 per cent. 23* „ f cent $2 40 cents 23* per cent. 23* If per cent. 8* per cent. 8* 10 11* The whole duty. 10 per cent. 11* „ * cent llf per cent. 11* 20 „ 13* „ 6* „ 30 „ 35 „ 30 35 20 23* 20 ; „ 23* 10 1 13. ±J -3 It io 113 - LJ -3 tt

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Table VI. The following are the principal articles of British production of which practically nothing is sent from this country to Canada, and in which there appears to be some reason to attribute the absence of exports either to the protective tariff or to United States competition:—

APPENDIX IX.

CANADIAN MEMORANDUM RESPECTING THE OPERATION OF THE PREFERENTIAL TARIFF. On the 23rd April, 1897, the Canadian Government promulgated a reciprocal tariff providing for a reduction of duty on British goods of one-eighth from the general tariff rates; such reduction of one-eighth to be in operation from the 23rd April, 1897, until the 30th June, 1898 ; it was also

Customs Duties. Articles. Rates under the General Tariff. Rates under the British Preferential Tariff. Difference in Favour o: British Goods. Agricultural implements Ad. Val. 20 per cent, to 35 per cent. 20 per cent. 25 „ 30 „ 13* per cent, to 23* per cent. 20 ' „ 16* „ 20 „ 6f per cent, to 11* per cent. 10 per cent. 8* „ 10 „ Bicycles ... ... „ Clocks and watches ... „ Watch cases ... „ Watch actions and movements ... „ Coal, bituminous ... Per ton of ... ... 2,0001b. Electrical apparatus ... Ad. Val. Household furniture ... „ Iron and steel — Pig-iron ... Per ton of 2,000 lb. Machinery (e x c ep t mining) ... ... Ad. Val. Wire, single or covered with cotton, linen, silk, rubber, &e. ... „ Other manufactures... „ 10 „ 53 cents 25 per cent. 30 „ 6* „ 35* cents 16f per cent. 20 ' „ 3* „ 17* cents 8* per cent. 10 ' „ $2 50 cents $1 66f cents 83* cents 25 per cent. 16f per cent. 8* per cent. 30 „ Various (principally 30 per cent.) 30 „ 20 per cent. Various (principally 20 per cent.) 20 „ 10 Jewellery ... ... „ Leather— Sole and upper ... „ Boots and shoes ... „ Musical instruments — Organs ... .. „ Pianos ... ... „ 10 „ 15 „ 25 „ 10 „■ 16* „ 5 8* „ 30 „ 30 „ 20 „ 20 „ 10 „ 10 Paper— Wall or hanging ... „ Printing ... ... „ Other manufactures... „ 35 „ 25 „ Various (mostly 25 and 35 per cent.) 23* „ 16* „ Various (mostly 16* and 23* per cent.) 11* .„ 8* „ Proprietary medicines— In liquid form containing alcohol ... „ Other kinds ... „ Railway materials — Cars for passengers ... „ Railway bars or rails of any kind ... „ Railway fish and tie plates ... Per ton of 2,0001b. Seeds— Garden, field, and other seeds for agricultural or other purposes, when in bulk or in large parcels ... ... Ad. Val. 50 per cent. . 25 „ 30 „ 30 „ 33* per cent. 16* „ 20 20 16* „ 8* „ 10 10 $8 $5 33* cents $2 66* cents 10 per cent. 6* per cent. 3* cents

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provided that the reduction would be increased to one-fourth on and after the Ist July, 1898. It was a provision of this reciprocal tariff that the reduction in duty would apply to any country the Customs tariff of which admitted the products of Canada on terms which were, on the whole, as favourable to Canada as the terms of the reciprocal tariff were to the countries to which it might apply. The belief and expectation of the Canadian Government were that the reduced rates would apply only to Great Britain, and perhaps one or two of the British colonies ; but it was realised that, possibly, under the operation of the British treaties with Belgium and Germany, these two foreign countries and others might have to be admitted to the benefits of the preference. The Law Officers of the Crown subsequently gave an opinion that these treaties applied ; as a result of this the benefits of the reciprocal tariff were extended to Belgium, Germany, France, Spain, and many other countries. The treaties between Great Britain and Belgium and Germany were later denounced, and expired at the end of July, 1898. On the Ist of August of 1898 the reciprocal tariff was repealed, and superseded by the British Preferential Tariff, which provided for a reduction of one-fourth of the general tariff rates of duty on all goods, except wines, malt liquors, spirits, spirituous liquors, tobaccos, cigars, and cigarettes imported from the United Kingdom, the British colony of Bermuda, the British colonies commonly called the British West Indies, including the following : The Bahamas, Jamaica, Turks and CaicoIslands, the Leeward Islands (Antigua, St. Christopher-Nevis, Dominica, Montserrat, and the Virgin Islands) ; the Windward Islands (Grenada, St. Vincent, and St. Lucia); Barbados; Trinidad and Tobago; British Guiana; any other British colony or possession the Customs tariff of which is, on the whole, as favourable to Canada as the British Preferential Tariff herein referred to is to such colony or possession. It was provided, however, that manufactured articles to be admitted under such preferential tariff should be bond fide manufactures of a country or countries entitled to the benefits of such tariff, and that such benefits would not extend to the importation of articles into the production of which there had not entered a substantial portion of the labour of such countries. By regulation it was determined that 25 per cent, of the completed cost of manufactured articles must represent British labour in order to entitle the articles to come under the preference. By Order in Council of the 14th July, 1898, the following British colonies were added to the list of countries entitled to the benefits of the preferential tariff: British India, Ceylon, New South Wales, Straits Settlements. On the Ist July, 1900, the preferential reduction was increased from one-fourth to one-third. It is respectfully submitted that the preference has arrested the decline in the volume of British imports into Canada, and given a stimulus to the trade, as a result of which increased sales have been made. For some years prior to the adoption of the preference the imports into Canada from Great Britain steadily declined, as the following figures show : —

Imports for Home Consumption from Great Britain.

The decrease in total British imports between the years 1893 and 1897 was at the rate of 32 per cent. ; in dutiable goods alone the decline was 36 per cent. During that period the total volume of imports entered for consumption declined only 9 per cent. ; dutiable alone declined 5 per cent. The total imports from the United States increased by 6 per cent.; dutiable increased by 7 per cent. From other countries the total imports did not vary much for this period, but the dutiable alone increased by 64 per cent. Taking the period from 1890 to 1897 the total British imports into Canada declined at the rate of 32 per cent, while that of the United States and all other countries increased by 18 per cent. The total volume of imports from all countries for this period did not vary very much, there being a decline of only 1 per cent. To further demonstrate the decline in Britain's trade the following figures are cited : —

Year. Dutiable. Total. 1887 1890 1893 1897 • 35,766,273 33,267,721 31,869,267 20,217,422 I 44,962,233 43,390,241 43,148,413 29,412,188

Year. Proportion of Dutiable Imports from Great Britain to Total Dutiable. Proportion Dutiable and Free from Great Britain to Total Dutiable and Free (exclusive of Coin and Bullion). 1893 1897 Per Cent. 45-61 30 53 Per Cent. 36-92 27-58

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The preference went into operation on the 23rd April, 1897, two months before the close of the fiscal year 1896-97. In view of the fact that a considerable length of time is necessary to disseminate information as to radical changes of such nature, and to secure compliance with the authorised regulations thereunder, it is not probable that the preference had much effect upon the trade operations of the fiscal year 1896-97, which closed on the 30th June, 1897. For comparative purposes, therefore, it seems fair to consider that year as the last prior to the preference. It will be seen, then, from the following figures that since the preference went into operation there has been a steady and substantial increase of British imports to Canada.

Imports entered for Consumption from Great Britain for the Years 1897 to 1901.

Comparing 1901 with 1897 there was an increase in British dutiable goods of 56 per cent. ; free, 23 per cent. ; and for the total, an increase of 46 per cent. From the United States for the same period there were increases as follows : — Dutiable ... ... ... ... ... ... 75 per cent. Free ... ... ... ... ... ... ... 82 Total... ... ... ... ... 79 From British colonies enjoying the preference the increases were thus : — Dutiable ... ... ... ... ... ... 53 per cent. Free ... ... ... ... ... ... ... 106 Total ... ... ... ... 73 The imports from all countries other than those mentioned increased at the following rates:— Dutiable ... ... ... ... ... ... 32 per cent. Free ... ... ... ... ... ... ... 41 Total ... ... ... ... 33 The total volume of imports from all countries increased in these ratios : — Dutiable ... ... ... ... ... ... 60 per cent. Free ... ... ... ... ... ... ... 67 Total ... ... ... ... 63 Attached hereto is a statement marked A showing the values of imports for the years 1897 and 1901, as regards total volume, Great Britain, United States, and other countries. It will be noticed that the total dutiable imports increased in 1901 over 1897 by 60 per cent.— and that the same class of imports from Great Britain increased in practically the same proportion —the actual rate of increase being 56 per cent. When this is compared with the period from 1893 to 1897, when British dutiable imports decreased by 36 per cent., while those from the United States increased by 7 per cent., and from all other countries by 64 per cent., the showing is a gratifying one ; and it is submitted it proves that the Canadian preferential tariff not only arrested the decline of British trade, but stimulated it. Eighty-two per cent, of the dutiable goods entered for consumption last year (1901) from Great Britain came under the preference. Particular attention should be directed to the fact that while British dutiable imports increased by 56 per cent, from 1897 to 1901 the increase in similar imports from all countries (exclusive of the United States) not enjoying the preference was at the rate of only 32 per cent. Hereto attached, marked B, is a statement showing the principal increases from 1897 to 1901 in British imports. In paragraph No. 11 of the memorandum styled " Effect of the Canadian Preferential Tariff on Trade between the United Kingdom and Canada," prepared in the Colonial Office, it is stated that a comparison of the percentages of the total import trade of Canada which came from the United Kingdom before and after the introduction of the preferential tariff respectively shows that the continuous decrease in the proportion of imports from the United Kingdom into Canada had not been arrested by the operation of the preferential tariff. It is true that Great Britain's proportion of Canada's total trade slightly decreased even with the preference in force, but it should be particularly noted that the preference only applies to dutiable goods. To ascertain the effect of the preferential tariff the comparison should therefore be made in regard to dutiable goods only. On this basis the figures show that whereas from 1893 to 1897 there was a decrease in the proportion of British imports from 45-61 per cent, to 30-53 per cent, in the following four-year period under the preference the average annual proportion was 30-29 per cent., and in 1901 it was 29-92 per cent.

Year. Dutiable. Free. Total. 1897 1898 1899 1900 1901 I 20,217,422 22,556,479 27,521,508 31,561,756 31,701,654 ft 9,194,766 9,944,438 9,538,615 13,227,974 11,316,510 ft 29,412,188 32,500,917 37,060,123 44,789,730 43,018,164

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Paragraph No. 13 of the said memorandum contains the following statement: — " We should not expect to find any material effect exerted by the preferential tariff in the case of heavy and bulky goods in which freight bears a high proportion of total value, and it is precisely in these classes of goods in which the main increase of Canadian imports has recently taken place. It is also in these classes of goods— e.g., coal, grain, raw cotton, timber, iron, and steel, and heavy manufactures thereof, such as bridges, girders, rails, engines, &c, that the United States, by geographical contiguity, as well as by wealth of natural resources, is to a large extent beyond reach of any competition from the United Kingdom in the Canadian market, even if aided by a much greater preference than that now accorded." Paragraph 14 gives a statment of the imports of such articles from the United States and other sources. The articles stated are, metals and manufactures thereof, coal and coke, grain and breadstuff's, meat, dairy-produce, and fruit, wood and manufactures thereof, raw cotton. If we eliminate the dutiable imports of these articles in which it is admitted that Great Britain cannot compete in the Canadian market, even if aided by a much greater preference than that now accorded, and compare the progress of trade in the balance of dutiable imports, it will be found that the preference has been of substantial advantage to Great Britain. The following statement shows the net dutiable importations for consumption, after deducting these articles.

These figures are instructive. Briefly stated they show, first, that between 1893 and 1897 the imports from Great Britain declined by 33 per cent., as compared with an increase of 22 per cent, from the United States, and an increase of 81 per cent, from other countries. But a change took place during the following four-year period when the preference was in operation. During that time British imports increased 59 per cent., United States 49 per cent., and other countries 29 per cent. The increase in the total from all countries was at the rate of 47 per cent. Rates of Duty. In paragraph 15 of the said Colonial Office memorandum it is stated that " the Canadian tariff, as a rule, discourages the importation of manufactured goods more than that of raw materials. Although, therefore, British goods enjoy a preference compared with the same goods imported from other countries, the average ad valorem rate of duty on British imports, taken as a whole, is still higher than the average duty levied on all imports, and much higher than the average duty levied on imports from the United States." These rates (eliminating coin and bullion) were for 1901: — All imports ... ... ... ... ... ... 16-35 per cent. Great Britain, all imports ... ... ... ... 18-32 „ United States ... ... ... ... ... ... 1242 It must be considered, however, that a very small proportion of the free goods is imported from Great Britain. The imports of free goods from Great Britain last year amounted to only $11,316,510, whereas from the United States they were $56,884,730. The policy of the Canadian Government is (and the necessities of the country require it) to admit free of duty, as far as possible, raw materials for the manufacturing industries, and necessaries for agricultural, mining, fishing, and other great industries. These raw materials and necessaries are largely produced in the United States. Many lines are not produced in Great Britain at all, and many others cannot be obtained by Canadians there to advantage. Great Britain cannot hope to compete in the Canadian market to any appreciable extent in the raw materials we require. It should be observed at this point that the free list of the Canadian tariff is open to all countries. There are no restrictions. The preference, of course, only applies to dutiable goods, and to ascertain the advantage that has been accorded to British trade the comparison should be made in respect of the rates of duty on dutiable imports. Taking this basis the average rates of duty were as follow : —

1901. 1897. 1893. Tota: ; prom All Counteies. $70,849,785 Increase, 1897 to 1901... 22,716,084 Rate of increase, 47 per cent. $48,133,701 Increase, 1893 to 1897... 360,785 Rate of increase, 1 per cent. $47,772,916 Fi $28,052,385 Increase, 1897 to 1901.. 10,448,437 Rate of increase, 59 per cent. iom Great Britain. $17,603,948 Decrease, 1893 to 1897... 8,955,940 Rate of decrease, 33 per cent. $26,559,888 F: $24,493,414 Increase, 1897 to 1901... 8,114,787 Rate of increase, 49 per cent. tOM United States. $16,378,627 Increase, 1893 to 1897... 2,972,276 Rate of increase, 22 per cent. $13,406,351 Fri im Other Countries. $7,806,677 $18,303,986 Increase, 1897 to 1901... 4,152,860 Rate of increase, 29 per cent. $14,151,126 Increase, 1893 to 1897... 6,344,449 Rate of increase, 81 per cent.

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Probably a fairer way to make the comparisons would be to eliminate narcotics and stimulants, upon which there are very high duties for revenue, not protective, purposes, and to which the preference does not apply. These articles form the main sources of revenue in nearly all countries. Deducting these lines, the average rates of duty were as follow : —

The rate under the preferential tariff on goods from Great Britain, in 1901, was 19-40. It is practically admitted in the Colonial Office memorandum that the preference has, at any rate, arrested the decline in the imports of textiles from Great Britain; but it is argued that the Canadian tariff is still highly protectionist as regards these classes of goods, the result being seen in the small and diminishing consumption per head of British textiles by the Canadian population. It is also stated that the consumption of these classes of goods is much higher in other British colonies than in Canada. In reply to these observations it may be stated that the textile industries, particularly woollens and cottons, are very well established in Canada, and made rapid strides in the last decade. The manufacturers naturally expect a share of the home market, and as their establishments develop they correspondingly look for a larger share. However, under the operation of the preference the rates of duty were very materially reduced, and the British manufacturer has, therefore, been placed in a much better position to compete in the Canadian market. For instance, the average rate on dutiable woollens under the tariff prior to 1897 was 32 per cent., and on cottons 29 per cent. In 1901 under the preference the average rates were—woollens 23 per cent., cottons, 20 per cent. It is submitted that the preferential rates on textiles are not too high to shut out reasonable competition with the Canadian manufacturer. The trade statistics show that the imports from Great Britain of textiles, including woollens, silks, cottons, flax, hemp and jute, carpets, curtains, oil-cloth, embroideries, and crape, decreased by 36 per cent, from 1893 to 1897, while during the same period they increased from other countries by 20 per cent. However, in the four years from 1897 to 1901, under the preference, they increased by 57 per cent, from Great Britain, and by 55 per cent, from other countries. Attached hereto, marked C, is a table showing the importations of textiles for the years stated. In 1897 the British imports into Canada of dutiable cottons amounted to 66 per cent, of the total; in 1901 the proportion had increased to 70 per cent. If we take woollens the proportion in 1897 was 78 per cent., and in 1901 it was 81 per cent. In this connection it might be noted that the Canadian Government has been attacked by Canadian manufacturers on the ground that the preference is seriously interfering with their trade. The woollen-manufacturers have been foremost in the attack, and they have made very bitter complaints to the effect that the industry is threatened with ruin through the severe competition from Britain brought about by the operation of the preference. In brief, these manufacturers claim that the rates on woollens are too low to be protective of their industry. Referring to the argument that the consumption of British textiles and British goods generally in Australia and New Zealand is much higher than in Canada, it is submitted that this is largely due to the fact that the manufacturing industries are more highly developed in Canada than in the colonies stated. On this point it is worthy of special note that the rates of duty on textiles in New Zealand seem to be about as high as the net rates under the preference in Canada. The New Zealand rates vary from 20 per cent, to 25 per cent, ad valorem. Under the preference the average rates on woollens last year was 23 per cent., and on cottons 20 per cent. Referring to the general statement made in paragraph No. 15 of the said Colonial Office memorandum, that Canadian policy remains protectionist in spite of the preference to British goods, it may be stated that the Canadian tariff was framed specially for revenue purposes, with protection as an incident, and that it admits of reasonable British and foreign competition with the domestic manufacturer and producer—it is not in any sense prohibitory. This is evidenced by the facts that the imports of dutiable goods are very large, and that they have increased very considerably in recent years. In 1897 the total dutiable imports were $66,220,765, whereas in 1901 they amounted to $105,969,756. Even the general tariff rates, which are one-third higher than the preferential rates, do not dis courage importations, as is seen from the fact that the dutiable imports from countries not entitled to the preference have largely increased. During the fiscal year 1896-7 the dutiable imports from countries not now enjoying the preference amounted to $44,888,582, and they increased to $72,558,286 in 1901.

Year. All Dutiable Imports. Great Britain, Dutiable Imports. United States, Dutiable Imports. 1897 1901 Per Cent. 2996 27-42 Per Cent. 30-69 24-74 Per Cent. 26-72 24-83

Year. All Imports. Great Britain. United States. 1897 1901 Per Cent. 26-57 24-15 Per Cent. 27-65 21-05 Per Cent. 2653 24-59

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Foreign countries having increased their trade with Canada, it, of course, follows that Great Britain, with the advantage of the preference, has been in a much better position to do so. The following table shows the average rates of duty paid on the importations for 1901 under the preferential tariff on the principal lines which are imported from Great Britain : — Preferential Tariff. Per Cent. Per Cent. Cement ... ... ... ... 20-7 Gold and silver manufactures ... 20-0 Cottons ... ... ... ... 20-4 Gutta-percha manufactures ... ... 221 Drugs and chemicals ... ... 15 1 Hats and caps ... ... ... 20-0 Earthenware ... ... ... 200 Iron and steel ... ... ... 11-6 Fancy goods ... ... ... 222 Paints ... ... ... ... 7-6 Flax and jute ... ... ... 17-9 Paper and manufactures ... ... 18-9 Fur and manufactures ... ... 11-9 Silks ... ... ... ... 209 Glass ... ... ... ... 17-1 Woollens ... ... ... ... 230 It is contended that these rates admit of reasonable competition with the domestic producer in the Canadian market. While on the whole the dutiable imports from Great Britain have increased materially under the operation of the preference, it is a matter of considerable surprise to find that the imports from foreign countries in quite a number of lines in which Britain chiefly competes, and to which the preference applies, have increased in as great a ratio as those from Britain, and in some cases at a greater rate. These statements, which are worthy of careful and serious consideration, are substantiated by the following figures : —

Dutiable Importations for Consumption into Canada.

It might be remarked here that if any doubt exists in Britain as to the substantial nature of the preference granted by Canada in favour of British goods, certainly none exists in the United States. The manufacturers there have found it necessary to reduce their prices to Canada to offset the preference. To conclude and to summarise it is respectfully submitted— (1.) That the preference is a very substantial and genuine one. (2.) That it gives British merchants a material advantage over foreign competitors in the Canadian markets. (3.) That the preferential rates are not too high to shut out reasonable competition with the Canadian producer.

1897. 1901. Silks from Great Britain „ other countries Fancy goods from Great Britain „ other countries Gloves and mitts from Great Britain ... „ other countries ... Combs from Great Britain ... „ other countries ... Collars and cuffs from Great Britain ... „ other countries... Buttons from Great Britain ... „ other countries Furs from Great Britain „ other countries Glass from Great Britain „ other countries ... Hats, caps, and bonnets from Great Britain „ „ „ other countries ... Gutta-percha and indiarubber manufactures from Great Britain ... „ „ „ other countries... Gold and silver manufactures from Great Britain „ „ other countries Paints and colours from Great Britain „ other countries Varnish and japans from Great Britain „ other countries _ 1,396,015 592,290 873,182 607,524 228,427 287,951 35,399 38,210 30,119 9,033 31,113 104,313 185,724 210,774 187,888 951,876 694,342 497,062 90,274 227,701 50,365 245,778 210,234 309,211 24,910 35,811 ft 2,107,032 1,618,991 898,131 1,032,582 215,122 487,456 54,137 74,341 25,612 63,463 30,352 147,038 378,331 587,060 352,204 1,223,415 893,501 768,262 155,445 454,446 63,012 296,634 224,202 544,641 36,166 80,858

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(4.) That the preference has resulted not only in arresting the continuous decline in British trade, but in stimulating the trade. If it had not been granted it is not very likely that the volume of British imports into Canada would be as large as it is to-day, to say the least. (5.) That the advantage given by Canada to the British manufacturer is proved beyond all question. If he has not fully availed himself of it that is not the fault of the Canadian Government or of Canadian fiscal policy. Important. Since the foregoing report was prepared and typewritten, a cable has been received from the Customs Department, Canada, stating that the unrevised foreign trade statistics for the fiscal year ended the 30th June, 1902, show that the imports entered for consumption from Great Britain amounted to $49,072,293, and from all countries to $202,791,406. These figures are subject to final revision, but they may be considered approximately correct. The amount stated for Great Britain is an increase of $6,054,129 over the previous year, or an advance of 14 per cent. The total imports from all countries increased by $21,553,418, or at the rate of 12 per cent,

A. Total Importations for Home Consumption into Canada.

14—A, 7.

Year. Dutiable. Free. Total. 1901 1897 ... 105,969,756 66,220,765 ft 105,969,756 66,220,765 $ 75,268,232 45,073,256 * 181,237,988 111,294,021 Increases 39,748,991 39,748,991 30,194,976 69,943,967 From Great Britain. 1901 1897 Increases 31,701,654 20,217,422 ... ... 11,484,232 11,316,510 9,194,766 43,018,164 29,412,188 2,121,744 13,605,976 From United States. 1901 1897 Increases 53,600,278 30,482,509 23,117,769 56,884,730 31,166,532 110,485,008 61,649,041 25,718,198 48,835,967 From British Colonies enjoying 1 'reference. 1901 1897 Increases 1,709,816 1,114,761 595,055 1,363,766 659,767 3,073,582 1,774,528 595,055 703,999 1,299,054 From all other Countries not befon mentioned. 1901 1897 18,958,008 14,406,073 5,703,226 4,052,191 24,661,234 18,458,264 Increases 4,551,935 4,551,935 1,651,035 6,202,970

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B. Statement showing the Principal Lines of Dutiable Imports from Great Britain for the Years 1897 and 1901. $ $ R n „_ „„,! ' 1901 •• 228,885 Gutta-percha, indiarubber, manu- f 1901 155,545 Books, periodicals, and pamphlets _._ 205 - 06 fao J rea of ' { 1897 •• 90 ; 274 Increase .. .. .. $23,179 Increase .. .. .. $65,271 Carpets, squares, mats, rugs other (1901 .. 215,63- „ , - , . (1901 893,501 than woollens (1897 .. 92,820 Hats, caps, and bonnets -\i m ■■ 6941342 Increase .. .. .. $122,814 Increase .. .. .. $199,159 n . 11901 .. 229,795 T ~ , , , . (1901 207,788 Cement .. .. •-11897 .. Leather, and manufactures of • • 1 1897 •• 101246 Increase .. .. .. $118,244 Increase .. .. .. $106,542 rvfr„„ ._-.,___.*_._. ' lyol •• 4.879,909 Metals, minerals, and manufac-(1901 2,965,153 Cotton manufactures .. .. __ 2 ,693,114 tures of {1897 - 2!102,680 Increase .. .. .. $2,186,795 Increase .. .. .. $862,623 n . ■ (1901 .. 305,623 „., , ~ (1901 341,712 Curtams |1897 .. 16 9 ;i92 Olloloth J1897 " 127,179 Increase .. .. .. $136,431 Increase .. .. .. $214,533 Drugs, d y es, and chemicals ..(»£ ;; jjjgj Oils (gg .. gjs Increase .. .. .. $485,986 Increase .. .. .. $177,813 Earthenware and china ware ' • 11897 " 386 780 P am ts and colours .. • - 118Q7 •• 9in9q_ Inorease .. .. .. $300,378 Increase .. .. .. $13,968 tt, j (1901 898,131 -o , , , , (1901 382,018 Fancy goods | 1897 .. 87g ; l82 Paper, and manufactures of ••{ 1897 •• 229 ;3 68 Increase .. .. .. $24,949 Increase .. .. .. $152,650 Flax, hemp, iute, and manufac-(1901 1,747,294 c .., , , . , (1901 2,107,032 turesof J1897 - 1,UH,8a9 Silk, and manufactures of ..| lBg _ .. Inorease .. .. .. $588,485 Increase .. .. .. $711,017 Fruits 11901I 1901 290,122 - . . (1901 259,694 * rults 11897 " 214,300 boap and spices .. • • 1 1897 •• 194,637 Inorease .. .. .. $75,822 Increase .. .. .. $65,057 „ (1901 378,331 ~ , , (1901 643,185 Pura |1897 - 1851724 Sugar and molasses .. .. \»£ .. «>**.£» Inorease .. .. .. $192,607 Increase .. .. .. $586,326 Glass, and manufactures of •• lw',isB Wool, and manufactures of ••{J B97 •• 5'5^'859 Inorease .. .. .. $164,316 Increase .. .. ..$2,484,600 Gunpowder and other explosives ..{ .. 169 Gloves and mitts .. ..J 1901 _ 215,122 Inorease .. .. .. $62,725 Decrease .. .. .. $13,305

C. Imports of Dutiable Textiles.

1901. 1897. 1893. From Grei ,t Britain. Woollens ... Silks Cottons Flax, hemp, and jute Carpets other than woollen ... Curtains ... Oilcloth ... Embroideries Crape s 8,061,459 2,107,032 4,879,909 1,747,294 215,634 305,623 341,712 20,502 20,227 » 5,576,859 1,396,015 2,693,114 1,158,809 92,820 169,192 127,179 42,626 13,674 $ 9,646,287 2,238,556 3,480,519 1,531,314 136,716 216,817 191,868 90,738 45,013 Increase, 1897 to 1901, 57 per cent. $17,699,392 Decrease, 1893 $11,270,288 to 1897, 36 per $17,577,828 sent.

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APPENDIX X.

MUTUAL PEOTECTION OF PATENTS. Memorandum by Board of Trade. In the matter of patents, the United Kingdom and its colonies have each of them independent laws and administration, one result of which is that in every case the protection granted to the patentee by the patent is limited either to the United Kingdom or to the particular colony in which the patent is granted, as the case may be. In most of the colonies the patent laws have been modelled more or less on the general lines of the Acts which have been in force in the United Kingdom at the dates when the colonial laws have been passed. The changes which have taken place from time to time in the patent laws in force in the United Kingdom have thus been accidentally a contributory cause of many divergencies, some trivial, some important, in the patent laws of various colonies. Other divergencies have their origin in the local circumstances of particular colonies, or the deliberate policy of the colonial Governments. Thus, in Canada, several of the details of the patent laws are assimilated to those of the United States, from which the great bulk of the inventions patented in Canada come; and the propinquity of the States, and the fear that obstructive patents may be taken out in Canada by inventors in the States for the purpose of preventing the manufacture of patented articles in Canada, have led to the passing of stringent enactments for the forfeiture of patents in the event of the importation into Canada of the patented goods, or if the patented inventions are not worked in Canada within a limited period. Where there are good and sufficient reasons for the existing divergencies it would manifestly be a mistaken policy to endeavour to remove them merely for the purpose of bringing about any cast-iron uniformity. But where any divergency is the result of accident rather than design, and. no good object is gained by retaining it, it would be well to bear in mind, in any future revision of the law, that unnecessary discrepancies between the patent laws of the colonies and the United Kingdom cannot but add to the trouble and expense which confront inventors in the United Kingdom who are desirous of patenting their inventions abroad, and colonial inventors who desire to patent their inventions in the United Kingdom or in colonies in which they do not themselves reside. It will be generally admitted that some approach to uniformity is desirable, so far as it is not purchased too dearly by disregard of local circumstances and requirements. It will, therefore, probably be useful to furnish the colonial Premiers with a somewhat detailed summary, such as is included in the present memorandum, of some of the points in which the legislation relating to patents in force in the self-governing colonies differs from or resembles that in force in the United Kingdom at the present time. It should be borne in mind in connection with this memorandum that important changes in the British patent law are proposed by the Patents Bill now before Parliament, and that, if that Bill becomes law during the next few months, its provisions in such form as they may ultimately pass may have an important bearing on any future colonial legislation on " examination for novelty," "forfeiture of patents," and " compulsory licenses." The memorandum is confined to the self-governing colonies, and is prefaced by a statement of the number of patents granted in the United Kingdom and in the colonies to which it relates, and ends with some account of the International Convention for the Protection of Industrial Property, and the provisions which have been inserted in some of the colonial patent laws, giving privileges to foreign patentees or providing for the contingency of the colonies in which they are in force joining the Union. Number of Colonial Patents granted. The following table, compiled chiefly from information contained in "La Propri6te Industrielle," will give some indication of the extent of the patent business transacted in the Patent Offices of the colonies to which this memorandum relates: —

Irom Othc Countries. Voollens ... ... ... ... lilks Jottons lax, hemp, and jute Jarpets Jurtains ... lilcloth ... Imbroideries 1,882,646 1,618,991 2,048,083 165,776 73,748 131,327 79,118 36,077 2,211 1,548,889 592,290 1,358,247 104,899 73,782 95,514 28,834 97,696 2,593 1,300,299 524,980 1,088,224 87,669 43,574 96,945 41,527 69,587 4,212 !rape Increase, 1897 to 1901, 55 per cent. 6,037,977 I 3,902,744 I 3,257,017 Increase, 1893 to 1897, 20 per cent.

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The number of patents issued in the United Kingdom in 1901 was 13,062. It will be seen from the above table that a majority of the patents issued in the self-governing colonies are granted in Canada, and that the number of patents granted in the self-governing colonies amounts to considerably more than half of the number granted in the United Kingdom. On the other hand, it should be borne in mind that it not unfrequently happens that an invention patented in the United Kingdom is patented in more than one colony. Who may obtain Patents. The main points of difference arising in this branch of the patent law are (1) whether an inventor may assign or bequeath his right to obtain a patent for his invention; and (2) whether a person, who is not the inventor in the ordinary sense of the term, but who is the first to introduce the invention from abroad, should be allowed to obtain a patent for it in disregard of the rights of the real inventor or his assignee. United Kingdom. In the United Kingdom a patent may be granted to one or more applicants. Every application must contain a declaration to the effect that the applicant or applicants is or are in the possession of an invention whereof he, or, in the case of a joint application, one or more of the applicants, claims or claim to be the true and first inventor or inventors. If an inventor dies before applying for a patent, the patent may be obtained by his legal representative, provided that he makes his application within six months of the decease of the inventor. If an applicant dies before the expiration of fifteen months from the date of application, the patent may be granted to his legal representative at any time within twelve months after the death of the applicant. Any person to whom an invention has been communicated from abroad, and who declares that to the best of his knowledge and belief the invention is not in use in the United Kingdom by any other person or persons, is regarded as the true and first inventor within this country. Canada, South Australia. In Canada and South Australia a patent may be obtained by the inventor, or by any person to whom he has assigned or bequeathed the right of obtaining it, or, in the event of the death of the inventor, by his legal representatives. Newfoundland. In Newfoundland, before any person can obtain a patent he must " make oath, in writing, that he doth verily believe that he is the inventor or discoverer of the art, machine, composition of matter, or improvement for which he solicits letters patent." New South Wales. In New South Wales patents may be granted to any person claiming to be the author or designer of any invention in, or improvement to, the arts or manufactures, or to his agent or assignee, Queensland. In Queensland the law is the same as in the United Kingdom, except that, when an inventor is out of the colony, application for the patent may be made by his assignee, either alone, or, if the whole right of the invention is not assigned, jointly with the inventor. Victoria, Western Australia. In Victoria and Western Australia the applicant for a patent may be, — (a.) The actual inventor ; or (b.) His assigns ; or (a.) The actual inventor jointly with the assigns of a part interest in the invention; or (d.) The legal representatives of a deceased actual inventor or of his assigns ; or (c.) Any person to whom the invention has been communicated by the actual inventor, his legal representatives or assigns (if the actual inventor, his legal representatives or assigns, is not or are not resident in Victoria or Western Australia).

Name of Colony. Year. Number of Patents issued. Canada Newfoundland New South Wales Queensland ... South Australia Victoria Western Australia Tasmania New Zealand Cape Colony... Natal 1901 * 4,766 1899 1900 1899 1898 1899 1899 1900 1898 1900 674 459 405 572 340 208 536 188 152 Total (excepting N< iwfoundland) 8,300 * No statistics available. The total number of patents granted in Newfoundland up to 1899 is only 198.

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The Act in the case of each of these colonies prescribes that the term " inventor " " shall not include a person importing an invention from any other colony or country without the authority of the actual inventor, his legal representatives or assigns." Tasmania. In Tasmania the terms of the Act indicate that the law is the same as in the United Kingdom, but the " Brief Instructions, 1896," state that the applicant must claim to be either (1) the true and first inventor, (2) the inventor's agent, (3) the inventor's assignee, (4) the introducer of the invention into the colony, (5) a deceased inventor's legal representative. New Zealand. In New Zealand, one or more of the applicants for a patent must be the true and first inventor, and the Act prescribes that the " true and first inventor " "means the person who is the actual inventor of an invention, or his nominee or assignee, but does not include the unauthorised importer of an invention from any place outside the colony." Cape Colony, Natal. In Cape Colony and Natal, a patent may be granted to the true and first inventor; or, if he dies within six months from the date of the application for the patent, to his executors within such six months or at any time within three months from his death. What Inventions ace Patentable. (a.) Definition of " Invention." The differences as regards the definition of "invention " are not very material. Most of the colonies, by a reference to the Statute of Monopolies, adopt the principles of the law of the United Kingdom. New Zealand, Queensland, Tasmania, Victoria. In the Patent Acts of New Zealand, Queensland, Tasmania, and Victoria, the definition of " invention " is the same as in the British Act, i.e., " invention " means any manner of new manufacture the subject of letters patent and grant of privilege within section 6 of the Statute of Monopolies, and includes an alleged invention. In Victoria no patent is granted for any invention the use of which would be dangerous or prejudicial to the public interest. Canada. In the Canadian Patent Act "invention" is defined as meaning "any new and useful art, machine, manufacture, or composition of matter, or any new and useful improvement in any art, machine, manufacture or composition of matter." No Canadian patent may issue which has an illicit object in view, or for any mere scientific principle or abstract theorem. Newfoundland, South Australia. Similar provisions to those in the Canadian definition are to be found in the Newfoundland and South Australian Patent Acts. In South Australia the patent becomes void if it appears that the grant was prejudicial or inconvenient to the general public. Cape Colony, Natal. In the Patent Acts of Cape Colony and Natal "invention " has the same meaning as in the old British Act of 1852 (15 and 16 Vict., c. 83). The definition of "invention " in that Act was " any manner of new manufacture the subject of letters patent and grant of privilege within the meaning of the Act of the 21st year of the reign of King James 1., chapter 3," (commonly known as the Statute of Monopolies). New South Wales. In New South Wales " invention " is construed as meaning " any invention or improvement in the arts or manufactures .... unless such invention or improvement appears to be detrimental to the public health, public welfare, morality, or the interest of the State. Scientific principles or theories cannot be patented, but the practical application of them to industrial ends may form the subject of a patent." Western Australia. The Patent Act of Western Australia does not apparently contain any express definition of " invention." (b.) Qualifying Provisions as to Novelty. The above definitions of " invention" are in some cases explained or qualified by further provisions. Canada. Under the Canadian Patent Act the invention must not have been in public use or on sale with the consent or allowance of the inventor for more than one year previously to his application for a patent, and any inventor who elects to obtain a patent for his invention in any foreign country before obtaining a patent for the same invention in Canada can only obtain a patent in Canada if the same be applied for within one year from the date of the issue of the first foreign patent for the invention. Newfoundland. The applicant for a patent in Newfoundland is required to " make oath in writing " that the invention " hath not to the best of his knowledge or belief been known or used in this colony, or

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in any other country," but he will not be deprived of his right to a patent by reason of his having previously taken out letters patent for the invention in another country, if " such invention shall not have been introduced into public and common use in this colony prior to the application for a patent therein." New South Wales. In New South Wales prior exhibition without any limit as to period does not prejudice patent rights. South Australia. In South Australia the invention must not have been " publicly used or offered for sale within the province prior to the date of the patent for the same," but the fact of an exhibitor having exhibited or tested his invention, either publicly or privately within a limited period, does not prejudice his right to a patent. An expired foreign patent is a bar to the grant of a patent in this colony. Victoria, Queensland, Western Australia, Tasmania, New Zealand. Provisions as to the exhibition of unpatented inventions within a limited period exist also in Victoria, Queensland, Western Australia, Tasmania, and New Zealand. In Victoria patents for foreign inventions may be granted within one year of the date of the foreign patent, notwithstanding prior use or publication in Victoria. Examination for Canada. In Canada on every application for a patent a thorough and reliable examination is required by law to be made by competent examiners employed in the Patent Office for that purpose. The Commissioner may object to grant a patent in any of the following cases : — (a.) When he is of opinion that the alleged invention is not patentable in law; (b.) When it appears to him that the invention is already in the possession of the public with the consent or allowance of the inventor; (c.) When it appears to him that there is no novelty in the invention; (d.) When it appears to him that the invention has been described in a book or other printed publication before the date of the application, or is otherwise in the " possession of the public; (c.) When it appears to him that the invention has already been patented in Canada or elsewhere, unless the Commissioner has doubts as to whether the patentee or the applicant is the first inventor. Whenever the Commissioner objects to grant a patent in any of the above cases, he must notify to the applicant the ground or reason therefor with sufficient detail to enable him to answer the objection if he can. An appeal lies from the Commissioner's decision to the Governor in Council. New Zealand, Tasmania. In New Zealand and Tasmania the Begistrar of Patents may refuse to grant a patent for any alleged invention which he knows is not new, after giving the applicant an opportunity of being heard personally or by his agent. Queensland. In Queensland it is the duty of every examiner to whom an application for a patent is referred to report whether, to the best of his knowledge, any of the following conditions exist with respect to the invention, that is to say— (a.) That it is not novel; (b.) That the invention is already in the possession of the public, with the consent or allowance of the inventor ; (c.) That the invention has been described in a book or other printed publication, published in Queensland before the date of the application, or is otherwise in the possession of the public; (d.) That the invention has already been patented in Queensland. Where an examiner reports that any of these conditions exist with respect to the alleged invention, the Begistrar may refuse to proceed with the application, unless the case is one which falls within the provisions of the Act relating to industrial or international exhibitions and international arrangements, or unless, in the case of a prior patent having been granted, he has doubts whether the patentee or the applicant is the first inventor. An appeal lies from the Begistrar's decision to the Law Officer. Victoria. In Victoria the examiner is required to ascertain and report to the Commissioner of Patents whether, to the best of his knowledge, the invention which it is sought to patent is not novel or is already in the possession of the public, with the consent or allowance of the true and first inventor, and if he reports to this effect the Commissioner may refuse to proceed with the application, which refusal is subject to an appeal to the Law Officer. New South Wales, South Australia. In New South Wales and South Australia the provisions of the Acts as regards the duties of the examiner appear to cover an inquiry as to whether the applicant is the true and first inventor. Western Australia. In Western Australia provision is made for examination as to interference between concurrent applications.

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Caveats. Canada. In Canada any intending applicant who has not perfected his invention, and is in fear of being despoiled of his idea, may file in the Patent Office a description of his invention so far, with or without plans at his own will; and the Commissioner, on payment of the prescribed fee, is required to cause the document, which is called a caveat, to be preserved in secrecy, with the exception of delivering copies of the same whenever required by the said applicant or by any judicial tribunal; but the secrecy of the document is to cease when the applicant obtains a patent for the invention. If application be made by any other person for a patent for any invention with which such caveat may in any respect interfere, the Commissioner is required to give notice by mail of such application to the person who has filed the caveat, and such last-mentioned person must within three months from the date of mailing such notice, if he wishes to avail himself of his caveat, file his petition and take the other steps necessary on an application for a patent; and if in the opinion of the Commissioner the applications are conflicting they will be referred to arbitration. Unless the person filing a caveat makes application within one year from the filing thereof for a patent the Commissioner is relieved from the obligation of giving notice, and the caveat then remains as a simple matter of proof as to novelty or priority of invention if required. South Australia. Very similar provisions as regards the filing of caveats and the sending of notices of any conflicting application to the person filing the caveat are contained in the South Australian Patent Act. Report of the Commissioners appointed by the United States Government in 1898 on "caveats." As the above provisions relating to "caveats" have been taken from the patent law of the United States, it may be of interest to the colonial Premiers to know that the Commissioners appointed in 1898 to revise the statutes relating to patents, trade and other marks, and trade and commercial names, on page 23 of their report say that they are clearly of opinion that the statute providing for the filing of caveats should be repealed. The reasons which have led them to this conclusion are set out in the following passage on page 22 of their report, viz.: — " The very general opinion of those most familiar with patent practice, as expressed to us, is that the caveat is practically of no use to inventors. Many attorneys of long experience in patent matters have assured us that they always advise their clients not to file caveats. The preparation of a caveat, if it be prepared with care and skill, involves considerable expense, hardly less than the preparation of an application. The filing of a caveat necessarily implies the subsequent filing of an application, with the result that the inventor is put to practically a double expense without practical advantage. "If foreigners are permitted to file caveats, as it would seem must be done if our citizens are permitted to do so, the result will be the introduction of a class of evidence which has always been considered open to very serious objection, and has never been permitted to be introduced in any proceeding before the Patent Office, or before the Courts in patent matters—namely, evidence of acts performed in a foreign country. If foreigners are permitted to establish conception of an invention in a foreign country by filing a caveat —and a caveat has practically no other effect than that of establishing conception of the invention described therein on the date on which it was filed— it would seem to be necessary to permit evidence to be introduced of the reduction of the invention to practice, as by construction of a machine, in the foreign country." Provisional Protection. No great differences exist in regard to provisional protection. Such differences as occur relate chiefly to the period of protection. In Newfoundland the nature of the protection, and in Cape Colony the character of the specification which must be filed with the application, are exceptional. Newfoundland. In Newfoundland every applicant for a patent is required with his petition to deliver into the office of the Colonial Secretary " a written description of his invention, and of the manner of using or process of compounding the same," in accordance with detailed instructions contained in the Act; and after the expiration of one week, and until the expiration of six months from the date of the delivery of this description, the applicant has the like privileges and rights as if a patent had been sealed to him on the date of such delivery. New South Wales. In New South Wales any person claiming to be the author or designer of any invention, or his agent or assignee, may obtain a certificate entitling him to provisional protection for his invention on payment of £2 and on depositing with the Minister of Justice a petition addressed to the Governor and a provisional specification in the prescribed form. This certificate is in force for twelve months, and becomes null and void if before the date of the expiration thereof its lawful holder fails to make application for a patent. Queensland, New Zealand, Victoria, Western Australia, Tasmania. In Queensland, New Zealand, Victoria, Western Australia, and Tasmania the law relating to provisional and complete specifications resembles that of the United Kingdom (1) in leaving it to the option of the applicant whether his application shall be accompanied with a provisional or a complete specification; (2) in the provisional protection which, after the acceptance of an application, is accorded to him during the period before the date of the application and the sealing of the patent, which protection enables him to use and publish the invention during this interval without

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prejudice to the patent subsequently granted to him ; and (3) in granting to him during the interval between the acceptance of the complete specification and the sealing of the patent or the expiration of the time for sealing, the like privileges and rights as if the patent had been sealed to him at the date of such acceptance, subject to the qualification that he may not institute any proceeding for infringement unless and until a patent has been granted to him. In all these colonies the normal time allowed for leaving the complete specification is nine months. This time may be extended, on payment of the prescribed fee, by three months in Queensland, and by one month in New Zealand, Victoria, Western Australia, and Tasmania. Natal. In Natal every applicant has also the option of selecting whether he will deposit a provisional or a complete specification with his application. In either case his invention obtains provisional protection for six months from the date of the deposit; and if no complete specification is deposited within eight weeks at least before the exDiration of the term of provisional protection, the application will be deemed to be abandoned. Extension of this time, for what appears to be an indefinite period, at the discretion of the Attorney-General is allowed. If the specification is deposited in fraud of the true and first inventor, any patent granted to such inventor will not be invalidated by it, or by any use or publication of the invention during the term of provisional protection. Cape Colony. In Cape Colony a specification must be deposited with the application ; and the invention obtains similar provisional protection for six months, during which period, in case the title of the invention or the specification is too large or insufficient, the Attorney-General may before the grant of a patent allow or require the specification to be amended, or another and sufficient specification to be deposited, which will have the same force, effect, and operation as if it had been originally deposited in its amended state. The specification originally filed is required particularly to describe and ascertain the nature of the invention, and in what manner the same is to be performed. Opposition to the Grant of Patents. (a.) Grounds of Opposition. In the United Kingdom and all the self-governing colonies, except Newfoundland, provision is made for opposition by persons interested to the grant of a patent. The grounds of opposition vary greatly, and in some of the colonies include prior publication, prior user, or possession by the public, while in one colony the grant of provisional protection may be opposed. United Kingdom. In the United Kingdom there are three grounds on which the grant of a patent may be opposed by persons interested : (a) that the applicant has obtained the patent from the opponent or from a person of whom the opponent is the legal representative ; (b) that the invention has been patented in this country on an application of prior date; and (c) that the complete specification describes or claims an invention other than that described in the provisional specification, and that such other invention forms the subject of an application made by the opponent in the interval between the leaving of the provisional specification and the leaving of the complete specification. Canada. In Canada the only cases in which the grant of a patent can be opposed by persons interested are apparently those of conflicting applications. Newfoundland. In Newfoundland there seems to be no machinery provided by which the grant of a patent can be opposed by persons interested. New South Wales. In New South Wales the Act and Patent Office Begulations, jointly, provide for the lodging of a protest against the issue of a patent, or of a certificate of provisional protection. Queensland. In Queensland the grant of a patent may be opposed by persons interested on any of the three grounds on which the grant of a patent can be opposed in the United Kingdom ; and also on any of the following grounds, viz.— (d) that the invention is not novel; or (c) that it is already in the possession of the public with the consent or allowance of the inventor; or (/) that it has been described in a book or other printed publication published in Queensland before the date of the application, or is otherwise in the possession of the public. New South Wales, South Australia, Tasmania, New Zealand, Cape Colony, Natal. In New South Wales, South Australia, Tasmania, New Zealand, Cape Colony, and Natal there are apparently no limitations to the grounds of opposition. Victoria. In Victoria the grounds of opposition are (1) that the applicant has fraudulently or without the authority of the opponent obtained the invention from him or from a person of whom he is the legal representative or assignee; (2) that the invention has not been communicated to the applicant by the actual inventor, his legal representatives or assigns, if the actual inventor, his legal representatives or assigns, is or are not resident in Victoria; (3) that the invention has been patented in Victoria on an application of prior date; (4) want of novelty, or the invention having been

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already published or publicly used ; and (5) that the complete specification describes or claims an invention other than that described in the provisional specification, and that such other invention forms the subject of an application made by the opponent in the interval between the leaving of the provisional specification and the leaving of the complete specification. Western Australia. In Western Australia a patent may be opposed on either of the first two grounds specified in the patent law of the United Kingdom, or (3) on the ground of an examiner having reported to the Begistrar that the specification appeared to him to comprise the same invention as is comprised in a specification bearing the same or a similar title, and accompanying a previous application. (b.) Hearing of Oppositions. United Kingdom. In the United Kingdom oppositions to the grant of patents are heard and decided by the Comptroller-General of Patents, or his deputy, with an appeal from his decision to the Law Officer. Canada. In Canada, conflicting applications are submitted to three skilled arbitrators, two of whom are chosen by the applicants and the third by the Commissioner or his deputy. The decision or award of these, or any two of them, delivered to the Commissioner in writing and subscribed by them, or any two of them, is final, as far as concerns the granting of the patent. Queensland, Western Australia, Viotoria. In Queensland and Western Australia, the Begistrar of Patents, and in Victoria the Commissioner of Patents, hears and decides the opposition, subject, in all three cases, to an appeal to the Attorney-General or other Law Officer. South Australia. In South Australia the Commissioner of Patents hears the opposition, and his decision is final. Tasmania. In Tasmania the opposition is heard and decided by a Judge of the Supreme Court sitting in Chambers, with an appeal to the Supreme Court of Tasmania. New Zealand. In New Zealand it is heard and decided by the Begistrar of Patents, subject to an appeal to the Supreme Court of New Zealand. Cape Colony, Natal. In Cape Colony and Natal objections to the grant of patents are heard by the AttorneyGeneral. Duration of Patents. In the United Kingdom and in all the colonies to which this memorandum relates, with the exception of Canada, the duration of a patent, unless it be extended in accordance with special statutory provisions, is limited to fourteen years. In Canada it is eighteen years. Extensions of these periods may, under special circumstances, be granted in the following colonies, viz.: Cape Colony, Natal, Queensland, Victoria, Western Australia, Tasmania, and New Zealand, for a period not exceeding fourteen years; in Newfoundland and South Australia for a period not exceeding seven years. In the majority of these cases the patentee can only obtain the extension when he can prove that he has been unable to obtain a due remuneration for the expense and labour of perfecting the invention, and that an exclusive right of using and vending the invention for a further period is necessary for his adequate remuneration. In Canada, Cape Colony, Natal, Newfoundland, and South Australia the patent expires with the first foreign patent—an arrangement which is at variance with the new clause inserted in the International Convention by the additional Act of the 14th December, 1900, to which further reference is subsequently made in this memorandum. Patent Fees. In the United Kingdom the fees charged by the State for a patent, which will continue in force for four years from the date of the application, amount to £4. If the patentee desires his patent to continue in force after the expiration of the four years he must pay renewal fees of £5 for the fifth year, £6 for the sixth year, and so on to £14 for the fourteenth year. If a patent be kept in force for the full period of fourteen years the total patent fees will amount to £99. The patent fees charged in the colonies are considerably lower than this. In New South Wales fees amounting to £5 will keep the patent in force for the full term of fourteen years. In most of the colonies the British system of renewal fees prevails, but the intervals at which these fees are payable are longer than in the United Kingdom. Thus, in Canada £4 is payable on the application, a second £4 before the end of the sixth year, and a third £4 before the end of the twelfth year, making £12 in all. The following table gives the details of these fees in the several self-governing colonies:— Canada ... ... Application ... ... ... 20 dollars. Benewal fee— Before end of sixth year ... 20 „ Before end of twelfth year ... 20 „ Total ... ... 60 dollars.

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Newfoundland ... ... Patent (in addition to ordinary fee for documents under Great Seal of colony) ... ... ... 25 dollars. £ s. d. New South Wales ... Application ... ... ... 200 Petition for patent ... ... 300 Total ... ... 5 0 0 Queensland ... ... Application ... ... ... 100 Complete specification ... ... 2 0 0 Before end of fourth year ... 5 0 0 Before end of eighth year ... 10 0 0 (Or annual renewal fees). Total ... ... 18 0 0 South Australia ... ... Provisional protection ... ... 10 0 Patent ... ... .:. ... 2 0 0 Before end of third year ... ... 210 0 Before end of seventh year ... 210 0 Total ... ... 8 0 0 Victoria... ... ... Provisional specification ... 100 Complete specification ... ... 2 0 0 On obtaining patent ... ... 10 0 Before end of third year ... ... 210 0 Before end of seventh year... ... 210 0 Total ... ... 9 0 0 Western Australia ... Application ... ... ... 100 Complete specification ... ... 2 0 0 Before end of fourth year ... ... 500 Before end of seventh year... ... 1000 Total ... ... 18 0 0 New Zealand ... ... Application ... ... ... 010 0 Complete specification ... ... 010 0 Grant of patent ... ... ... 2 0 0 Before end of fourth year ... ... 5 0 0 Before end of seventh year... ... 10 0 0 Total ... ... 18 0 0 Tasmania ... ... Application ... ... ... 010 0 Complete specification ... ... 010 0 Grant of patent ... ... ... 200 Before end of third year ... ... 15 0 0 Before end of seventh year... ... 20 0 0 Total ... ... 38 0 0 Cape Colony ... ... Application ... ... ■•• 210 0 Grant of patent ... ... ... 210 0 Before end of third year ... ... 10 0 0 Before end of seventh year... ... 20 0 0 Total ... ... 35 0 0 Natal ... ... On depositing provisional specification 110 Notice to proceed ... ... 050 Fee for Attorney-General's warrant ... 110 Complete specification ... ... 110 Grant of patent ... ... ... 110 0 Before end of third year ... ... 5 0 0 Before end of seventh year ... 10 0 0 Total ... ... ... 19 18 0 Forfeiture of Patents for Non-wobking. Patents cannot be forfeited for non-working in the United Kingdom, or in any of the colonies to which this memorandum relates, with the exception of Canada, Newfoundland, and South Australia.

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Canada. In Canada patents become null and void at the end of two years from the date thereof, unless the patentee or his legal representatives or his assignee within that time, or any authorised extension thereof, commence and after such commencement continuously carry on in Canada the construction or manufacture of the patented invention in such a manner that any person desiring to use it may obtain it or cause it to be made for him at a reasonable price at some manufactory or establishment for making or constructing it in Canada. This period of two years may be extended at any time not more than three months before its expiration by the Commissioner of Patents on its being proved to his satisfaction that the patentee was, for reasons beyond his control, prevented from complying with the above condition. Any question as to whether a patent has become void under these provisions may be adjudicated upon by the Exchequer Court of Canada upon information in the name of the Attorney-General of Canada, or at the suit of any person interested. Newfoundland. Any patent in Newfoundland which has not been brought into operation within two years from the date thereof becomes void at the end of that period. South Australia. Every patent in South Australia is liable to be revoked by the Governor upon the application of any person after the expiration of three years from the granting thereof, if it is made to appear to the Governor that neither the patentee nor his assignee or licensee has before the time of such application used the patented invention to a reasonable extent for the public benefit. But the Governor may, in his absolute discretion, refuse any such application upon such terms and conditions as he may see fit. No patent has yet been forfeited under these provisions, and it is believed that no application has yet been made under them. Forfeiture of Patents when Patented Goods are imported. Canada. The only colony in which it has been considered necessary to forfeit a patent by reason of the importation of the patented goods, or to place any special prohibition on the importation of patented goods as such, is Canada, which is of course very exceptionally situated by reason of its propinquity to the United States, the most inventive country in the world. In Canada, if after the expiration of twelve months from the granting of a patent, or any extension of such period which may be authorised by the Commissioner of Patents on satisfactory cause being shown at some time within three months of the expiry of the period, the patentee, or any of his representatives or assignees, imports or causes to be imported into Canada the inventions for which the patent has been granted, the patent becomes void as to the interests of the importer. • . Compulsory Licenses. New Zealand, Queensland, Tasmania, Western Australia. In New Zealand, Queensland, Tasmania, and Western Australia, if it is proved that by reason of the default of a patentee to grant licenses on reasonable terms (1) the patent is not being worked in the colony; or (2) the reasonable requirements of the public with respect to the invention cannot be supplied ; or (3) any person is prevented from working or using to the best advantage an invention of which he is possessed, the Governor may require the patentee to grant licenses on such terms as, having regard to the nature of the invention and the circumstances of the case, he may think just; but, so far as we are aware, no application for a compulsory license has yet been made in any of these colonies under the above provisions. In the above colonies the law on this point is substantially the same as in the United Kingdom, with the exception that the jurisdiction exercised by the Board of Trade in the United Kingdom is exercised in the colonies by the Governor. In the remainder of the colonies to which this memorandum relates it has not been thought necessary to pass any legislation for the grant of compulsory licenses. The International Convention for the Protection of Industrial Property. By the International Convention of the 20th March, 1883, the Governments of Belgium, Brazil, France, Guatemala, Holland, Italy, Portugal, San Salvador, Servia, Spain, and Switzerland constituted themselves into a Union for the Protection of Industrial Property. The following Governments have since adhered to the Convention and become parties to the Union—viz., Great Britain, Tunis, the Dominican Bepublic, Sweden, Norway, Queensland, the United States, New Zealand, Denmark, and Japan; while San Salvador and Guatemala have left the Union. Article 11. of the Convention provides that the subjects and citizens of each of the contracting States shall in all the other States of the Union, in matters concerning patents of invention, industrial designs or models, trade and commercial marks, and trade names, enjoy the advantages which their respective laws now grant or shall hereafter grant to natives. Article IV. provides that:—" Any person who has duly lodged an application for a patent of invention, an industrial design or model, or a trade or commercial mark in one of the contracting States, shall enjoy, for lodging the application in the other States, and reserving the rights of third parties, a right of priority during the terms hereinafter stated. Consequently, a subsequent application in one of the other States of the Union before the expiration of these terms shall not be invalidated through any acts accomplished in the interval, either, for instance, by another application, by publication of the invention, or by the working thereof by a third party, by the sale of copies of the design or model, or by the use of the mark,"

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The above-mentioned terms of priority, as fixed by the original Convention of 1883, were six months for patents of inventions, and three months for industrial designs and models and for trade and commercial marks. These terms were increased by a month for " countries beyond the sea," an expression which has been interpreted as meaning " countries outside Europe which do not border on the Mediterranean." By the additional Act of the 14th December, 1900, the terms of priority were fixed for all countries at twelve months for patents and four months for industrial designs and models and for trade and commercial marks. Article V. of the Convention provided that—" The introduction by the patentee into the country where the patent has been issued of objects manufactured in any of the States of the Union shall not entail forfeiture. Nevertheless, the patentee shall remain subject to the obligation to work his patent in conformity with the laws of the country into which he introduces the patented objects." This article has been modified by the additional Act of the 14th December, 1900, which provides that " the patentee in each country shall not incur forfeiture for non-working until the expiration of a minimum period of three years commencing from the date of the deposit of his application in the country in question, and in case the patentee fails to give satisfactory reasons for his inaction." Articles VI. to X. of the Convention relate to trade or commercial marks. Article XL, as modified by the additional Act of the 14th December, 1900, provides that the high contracting parties shall, in conformity with the legislation of each country, grant temporary protection to patentable inventions, industrial designs or models, and to trade or commercial marks, for articles exhibited at official or officially recognised international exhibitions which have been organized in the territory of one of them. Article XII. provides that each of the contracting States shall establish " a special department for industrial property, and a central office for the communication to the public of patents of invention, industrial designs or models, and trade or commercial marks." In the final protocol of the Convention it is stated that the organization of this special department is to comprise, so far as possible, the publication in each State of a periodical official paper. Article XIII. provides that an International Office shall be established under the authority and supervision of the Central Administration of the Swiss Confederation, the expenses being borne in common by the contracting States. The total expenses are limited by the protocol of the 15th April, 1891, to the sum of 60,000 francs a year. By the additional Act of the 14th December, 1900, a new clause has been inserted in the Convention providing that: —" The patents claimed in the different contracting States by persons entitled to the benefit of the Convention shall be independent of the patents obtained for the same invention in other States whether adhering to the Union or not. This provision shall apply in the case of the accession of new States to patents existing in either State at the time of accession." International Arrangements in the Self-governing Colonies. Queensland, New Zealand. The only two colonies that are already parties to the International Convention are Queensland and New Zealand. The Government of Western Australia has recently expressed a desire to join the Convention, while those of Natal and Newfoundland have expressed a contrary desire. New South Wales, Tasmania, Western Australia. The patent laws of New South Wales, Tasmania, Western Australia (in common with those of Queensland and New Zealand, which have already entered the Union) contain provisions on the same lines as those in section 103* of the British Act of 1883, which, when made applicable by Order in Council to any colony which has joined the Union, give the priority conceded by Article IV. of the Convention to applicants from all countries belonging to the Union; and when made applicable to colonies which have not joined the Union give similar rights of priority to applicants from such colonies and the United Kingdom. Orders in Council have made the section applicable to Western Australia and Tasmania, neither of which has yet joined the Union. Victoria. The patent law of Victoria provides that, subject to the issue of Orders in Council, an applicant for a patent in the United Kingdom, any Australian colony, or the Colonies of New Zealand or Fiji, may have six months' priority in Victoria. The law in this colony also gives twelve months' priority to a patentee abroad, provided that any publication of the invention in Victoria shall have been without the inventor's consent. Canada, Newfoundland, South Australia, Cape Colony, Natal. The patent laws of Canada, Newfoundland, South Australia, Cape Colony, and Natal contain no provision for international arrangements for the protection of inventions. The Canadian Patent Act, however, gives twelve months' priority to a patentee abroad, provided notice of intention to apply for a patent in Canada be given to the Commissioner within three months of the date of the foreign application. In the Newfoundland Consolidated Statutes (Second Series), chapter 109, section 18 implies that patents may be granted in England which shall extend to Newfoundland, but provides that they shall not be effective there until the arrival of the specification and drawings.

* This section has been amended by section 6 of the Act of 1885 and by the Act of 1901.

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Natal. The patent law of Natal provides that, from and after the promulgation in this colony of the Order in Council referred to in section 104 of " The Patents, Designs, and Trade-Marks Act, 1883," all letters patent granted in the United Kingdom of Great Britain and Ireland shall be deemed and taken to be granted under the provision of Law No. 4, 1870, and may be dealt with accordingly ; provided that this law shall only apply to patents granted for inventions in the United Kingdom, and not to designs or trade-marks. The effect of this provision is not altogether clear. Some of the difficulties which would arise under it, if Natal were to join the Union, are commented on in a recent letter from the acting Attorney-General of Natal to the Colonial Secretary.

APPENDIX XL

IMPEEIAL STAMP DUTY CHAEGES ON COLONIAL BONDS. Memorandum by the Board of Inland Bevenue. 1. Colonial Government Bonds. These securities, together with foreign securities, were first brought into charge to stamp duty by the Act 25 Vict., c. 22, the charge of 2s. 6d. per cent, on the amount secured being confined to those securities which were made, or the interest payable in the United Kingdom. By the Act 34 and 35 Vict., c. 4, the charge was extended to those securities which were assigned, transferred, or in any manner negotiated in the United Kingdom. In 1885, when the Act 48 and 49 Vict. c. 51, whereby all securities transferable by delivery were made chargeable with the duty of 10s. per cent., came into operation, these securities were specially excepted from the higher rate of duty, and remained, and are still, within the 2s. 6d. per cent, rate, whether transferable by delivery or otherwise. It will be thus seen that they are placed in a more favourable position as regards duty than similar securities of a foreign Government or even the English municipal corporation bonds transferable by delivery which fall within the 10s. per cent, rate. Possibly these securities may be liable to duty in the issuing colony, but that objection applies equally to all instruments, and the revenue laws of one country are not taken notice of by the revenue laws of another. 2. Colonial Municipal Bonds (Corporation or Company). These securities are chargeable in the same way as those of English corporations or companies —namely, if transferable by delivery, Is. for every £10 or fractional part of £10 secured ; if transferable otherwise than by delivery, 2s. 6d. per cent. In connection with this question it may be useful to point out that under " The Colonial Stock Act, 1877," now represented by section 114 of " The Stamp Act, 1891," the Government of Canada or other colony may pay a composition duty for the duty on the transfers of stock issued by the colony, which is inscribed in books kept in the United Kingdom, and so free from the duty of 10s. per cent, all transfers of stock included in the payment. The rate of composition is Is. 3d. for every £10 or any fraction of £10 of the nominal amount of stock inscribed at the date of the compositions, with the addition — (a) when the period of redemption exceeds sixty years and does not exceed 100 years, of 3d. for every £10 or fraction of £10 ; (b) when the period exceeds 100 years, or no period is fixed, of 6d. for every £10 or fraction of £10. 22nd May, 1902.

APPENDIX XII.

MEMOBANDUM ON THE PACIFIC CABLE .AND THE TELEGBAPH SEBVICE OF THE EMPIEE. Bespectfully submitted for the Information and Consideration of Members of the Coronation Conference by Sir Sandford Fleming. 1. In the Canadian Parliament a few weeks ago the Honourable William Mulock, PostmasterGeneral, informed the members that a complication, prejudicial to Canadian interests, has arisen in connection with the Pacific cable. 2. Although this complication is distinctly traceable to the pronounced hostility to the Pacific cable of the Eastern Extension and Associated Telegraph Companies, its immediate cause is due to the action of the Government of New South Wales in granting to the companies concessions materially affecting the financial outlook of the Pacific cable scheme. 3. On 31st December, 1900, the contract for establishing the Pacific cable was formally executed on behalf of tbe Home Government, the Governments of Canada, New South Wales, Victoria, Queensland, and New Zealand. Sixteen days afterwards the Government of New South Wales, without the consent of the five other Governments in the partnership arrangement, or any

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of them, granted the telegraph companies under a formal agreement the concessions referred to. This agreement cannot be rescinded unless by mutual consent, and as the post and telegraph service has since the date of the agreement been transferred to the Commonwealth of Australia, New South Wales, even if she so desired, has not now the power to set aside her own act. The power has passed from her, and the Government of the Commonwealth, as the inheritor of the act, is bound by the agreement. 4. When in Australia last year Mr. Mulock had frequent interviews with the Bight Hon. Edmund Barton, Premier of the Commonwealth, by whom he was made aware of the peculiar circumstances of the case. Mr. Barton and his Government were placed in an extremely difficult position, for if the Commonwealth inherits the particular Act referred to of New South Wales, it likewise inherits the responsibilities assumed by each of the three Australian States, Victoria, Queensland, and New South Wales, when they entered into the Pacific cable arrangement. If, therefore, the agreement with the telegraph company cannot be changed, the moral obligations inseparable from the partnership agreement of an earlier date, resting on all the partners, are still more irrevocable. 5. Mr. Mulock informed the Canadian House of Commons that Mr. Barton recognised it to be the duty of the Commonwealth, while adhering to the agreement of New South Wales with the telegraph company, to live up to the spirit of the Pacific cable agreement, and that he earnestly desired to see an honourable way out of the grave difficulty to which his Government had fallen heir. 6. As already stated, the difficulty is directly traceable to the Eastern Extension and Associated Telegraph Companies. These companies have combined to thwart the efforts of the Governments concerned in establishing the Pacific cable. It cannot be said that those in the combination are inspired by lofty ideals or patriotic sentiments. They are governed entirely by considerations of private interest, and in order to accomplish their ends they are bent on controlling all the over-sea lines of telegraph to Australia and New Zealand. There are good grounds for the belief that they aim to control even the Pacific cable itself. As will hereafter be pointed out, they have entered on a crusade which may seriously affect the financial success of that undertaking as to develop a feeling against the policy of working it by the State, in order that its control may fall into their own hands. As the danger apprehended is imminent, the public interests will best be served by recalling and considering the facts. Possibly a knowledge of them may open up an honourable way out of the difficulty acceptable to the Commonwealth of Australia, and to which each of the other partners in the Pacific cable contract may yield a ready assent. 7. At the Colonial Conference held in London in 1887 the delegates discussed at some length various matters bearing on the telegraphs of the Empire. Again, in 1894, at the Ottawa Conference the discussions were renewed. At innumerable meetings of Chambers of Commerce, Empire Leagues, and other associations the subject has again and again been considered. In the interval which has elapsed, the project of a British Empire telegraph service has been steadily developing. Its outline was submitted in a communication to the Secretary of State for the Colonies, dated the 28th October, 1898, and the main features of the scheme therein set forth may be described as one unbroken chain of State-owned telegraphs around the globe, touching or traversing all the great British possessions so as to bring each of them into direct electric touch with the Mother-country and with each other. In this manner Canada, New Zealand and Australia, India, South Africa, and the United Kingdom would be brought within the same electric circle. An essential feature of the scheme laid down is that no part of the system should touch foreign soil, and that the cables should each and all avoid shallow seas in proximity to any country likely at any time to prove unfriendly. The route of the telegraph was more precisely described as extending from London to Canada, through Canada to Vancouver, from Vancouver to New Zealand and Australia, thence to Perth in Western Australia, from Perth to South Africa with a branch from Cocos Island to India ; from Cape Town it was designed to extend to Bermuda, touching at St. Helena, Ascension, and Barbadoes; at Bermuda a choice of routes to England would be opened for selections. It might cross the Atlantic direct, or as an alternative extend northerly to a suitable point of junction with the State line between Canada and England. 8. Such a telegraph girdle of the globe would constitute a means of connecting all His Majesty's great possessions and nearly all the naval coaling stations with each other, and with the Imperial centre in London. The sub-ocean connections would be deep-sea cables in the least vulnerable position, and it may be added that the system would possess an advantage peculiar to a globe-encircling line of telegraph; each point touched would be telegraphically connected with every other point by two distinct routes extending in opposite directions. This feature possesses special value, and in practice would prove the best security against interruptions from whatever cause. 9. Since 1898, when the scheme was promulgated, progress has been made in its development : (1) a State-owned cable from Canada to New Zealand and Australia is on the eve of completion, and (2) a cable has been laid across the Indian Ocean from Australia to South Africa. The latter is, however, a private undertaking, from which have sprung the complications which perplex the Government of the Commonwealth of Australia. On this point a brief explanation is called for. 10. It is well known that the telegraph companies have from the first placed themselves in opposition to the Imperial telegraph scheme, and have employed every conceivable means to stifle the proposal to establish a Pacific cable. One main reason for their hostility to the Pacific cable lies in the fact that it forms the most important section of the larger proposal, and that the Canadian route is absolutely the only route by which the globe may be girdled by a chain of all-British cables, the proposal to which they are

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So strongly opposed. When it became known that the six Governments concerned had resolved to establish the Pacific cable the telegraphic companies combined and determined to adopt drastic measures in order to defeat the new State policy. They saw plainly that a State-owned cable across the Pacific would speedily lead to similar cables across the Indian and Atlantic Oceans. Accordingly they arranged to pre-occupy the ground by laying a private cable on the precise route which had previously been projected in the Indian and partly in the Atlantic Ocean for the State-owned line. Moreover, they made tempting overtures to the Governments of the Australian Colonies, offering to reduce the burdensome telegraph charges hitherto exacted, provided these Governments granted them certain concessions, which concessions, it was believed, would enable the combined companies to ruin the commercial value of the Pacific cable. There is likewise evidence to show that the cable combine took means to invoke the powers of the Press to influence public opinion in their favour. Unfortunately, the then Government of New South Wales listened to the overtures, and granted what the companies asked for. 11. These in a few words are the circumstances which have led to the difficulty referred to by Mr. Mulock. There is a collision of interests, private on the one hand, public and Imperial on the other. The cable companies, looking to private rather than public interests, adopted a bold and aggressive policy. If they succeed in their designs they will hold firmly within their grasp the most important telegraph lines of the Empire : a condition of things pregnant with danger; for it must not be forgotten that the property, the privileges, and the powers of companies are transferable by purchase. We are not unfamiliar with such transfers, and we may ask ourselves the question, " What would prevent a syndicate of German, French, or United States stock operators buying up the controlling-power of the Eastern group of cables ? What would prevent the controlling power of the whole telegraph system of the Southern Hemisphere passing into foreign hands ? What would prevent the cables of the Empire being alienated at the most critical moment? " 12. The mere possibility of such a thing can scarcely be regarded with equanimity. The question raised is of vital importance to British people everywhere. Obviously the obligation to safeguard the public interest in the matter of telegraph communications is thrown on the Government of the British family of nations, and at this juncture on no single Government more than on that of the great Commonwealth of Australia. 13. In November, 1900, an Inter-Departmental Committee was appointed by the Home Government to inquire into the subject of telegraphic connections, Lord Balfour of Burleigh being Chairman. The Committee reported a few weeks ago and the points specially referred to in the report which have a bearing on the matter now being considered are as follows :— (1.) The Committee are strongly opposed to the general purchase of cables by the State. (2.) The Committee are of opinion that every important colony or naval base should be connected with the United Kingdom by one cable touching on British territory, or on the territory of some friendly neutral. ' (3.) A variety of alternative routes should be provided wherever it is essential to secure telegraphic communication in time of war. (4.) The normal policy should be to encourage free trade in cables. Exceptions should only be made to this rule on the ground of national, not of private, interests. 14. These are the principal conclusions reached by the Committee, and it will be observed that not one of them conflicts with the proposal formulated in October, 1898. With respect to the first point in the above list, the general purchase of cables by the State formed no part of the proposal then submitted. The proposal was not to purchase old cables, but to supplement them by establishing a sufficient number of new lines touching only British territory to connect every important colony with the Mother-country. This part of the proposal is in complete harmony with the recommendation of the Committee, with this difference : their recommendation is indefinite with respect to the number of cables, and may be understood to mean many cables— that is to say, a separate and distinct cable from each colony to the United Kingdom. The proposal of 1898 is precise and clear. Its main feature is to have the greater colonial possessions connected with each other and the Mother-country by one continuous chain of cables constituting an all-British telegraph around the globe. Importance is attached to this proposal in the interest of economy, as it would secure every advantage with the least outlay. Moreover, the continuity of the cables, so as to form an electric ring around the earth, would in practice be the best security against interruption in the transmission of messages, as, when a break would occur at any point, there would remain in alternative route in the opposite direction. 15. It is not necessary to dwell upon the enormous importance of having the globe girdled by an all-British State-owned telegraph, as its advantages are self-evident. When the proposal was made known in December, 1898, the British and colonial Press, with extraordinary unanimity, expressed generally the opinion that the advantages to result are incontrovertible; that nothing would tend more to quicken a sense of unity and solidarity throughout the Empire; that at all times it would place in the power of the Governments to regulate and moderate the rates for the transmission of messages between all the countries served ; that the immediate effect would be to facilitate intercourse and foster trade, not only between the Mother-country and the colonies, but between the colonies themselves. 16. One essential point to be insisted on is that the Imperial telegraph girdle must be absolutely State-controlled, in order that the main lines of communication of the Empire be placed beyond the possibilty of interference by trusts and combines—that is to say, that they shall remain inviolably British. 17. The expenditure involved would be considerable, but it is far outweighed by the incalculable benefit to result. The original estimate of expenditure required to establish such a telegraph

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girdle around the globe was from £5,000,000 to £6,000,000, but this included the Pacific cable, which will cost close on £2,000,000. The Pacific cable will shortly be completed. To provide and lay the remaining cables not far short of £4,000,000 will be required. 18. The foregoing paragraphs relate in brief detail the causes which have led to the complications which have arisen in Australia, and point out the inevitable outcome of the designs of the cable companies if they are allowed to go unchecked. The gravity of the peril has been indicated, and it is of such a character as to demand decisive action on the part of the Governments concerned. 19. Although the complications referred to by Mr. Mulock in the Canadian House of Commons had their origin in Australia, the question raised is not limited to that country. The antagonists of an Imperial system of cables conspired to defeat it, they played what from their own standpoint might be regarded as a master-stroke. This action has, however, brought forward an Imperial question of vital importance, in which we are all concerned, and the issues at stake are such that it is in the last degree inexpedient to place it in the power of any man, or syndicate of men, to gain control of the nervous system of this great oceanic Empire. 20. We have a common interest in a common object. We have a common interest in seeing that a gigantic cable combination shall not be fastened on the British people to handicap commerce and retard general progress, and still more are we all interested in seeing that it shall not remain as a menace to the security of the Empire. 21. The problem presented is of the first importance, and the solution of it rests with the statesmen from the self-governing parts of the Empire, to be assembled at the Coronation Conference. It can undoubtedly be solved by following the same policy as that adopted in the establishment of the Pacific cable —that is to say, by a partnership arrangement in which all will unite for the common good. 22. Our common object is the freest intercourse, and this object can best be attained by linking together all the great outposts of the Empire precisely as Canada, New Zealand, and Australia are now being brought into close relationship by means of the Pacific cable. The Imperial telegraph system will embrace in its circuit round the globe three great oceans. Of these, the Pacific will have its opposite shores telegraphically united in a few months. Then will remain the Indian and Atlantic Oceans to be traversed by nationalised cables. This, the crowning achievement, will cost, in round figures, £4,000,000, an insignificant expenditure of capital in view of the immensely important results to be attained. It would do more for the Empire as a whole than twenty times the amount spent in any other way whatever. It would set at rest the difficulty which has been caused in Australia. It would place the telegraphic service of the Empire on a secure and satisfactory basis, and render alienation of the leading cables impossible. It would be a fresh tie between all the great colonies and the Motherland of great practical utility ; it would minimise transmission charges, and prodigiously increase the volume of telegraphic intercourse ; it would benefit trade, vitalise the spirit of patriotism, and strengthen the sentiments which constitute the most enduring foundation on which the Empire of the future can be built up. The circumstances are such and the benefits so many and so great that whatever the cost the pan-Britannic telegraph service should as speedily as possible be carried to completion. 23. The establishment of such a service would affect the existing companies. The national telegraph encircling the globe would become the main or trunk line of communication between the great self-governing portions of the Empire. The existing private cables would to a large extent assume the position of branches to the trunk line, and as such would find employment in general and especially in international traffic. The charges for transmission by the trunk line would be lowered to a minimum, so as merely to cover cost of operating, interest, and maintenance ; and as a consequence the business would be immensely increased. The companies would gain by the increase and likewise by the reduced charges on the main line, as they would thus be supplied with much profitable business for general dissemination. 24. The private cables were for the most part established with commendable enterprise many years ago. They received generous Government assistance. They have done useful pioneer work, and this work has already yielded to the enterprising investors rich returns. The time has come, however, when circumstances demand a change. It has become a matter of public expediency that the State should control an unbroken line of telegraph established for the safety and wellbeing of the Empire. It is possible, therefore, that the companies may have to rest content with more moderate gains than hitherto, at least until there be a new development of business under the changed conditions; that a development of telegraph business beyond all ordinary conception will result from the establishment of the Imperial service there can be no doubt whatever. 25. In the event of a determination being reached to complete the Imperial telegraph service, before proceeding to lay a State cable across the Indian Ocean the companies should be given the option to transfer, at a fair price, the private cable recently laid by them between Australia and South Africa, and arrangements should likewise be made to connect the Cape with the United Kingdom by a State-owned cable. These with the Pacific cable will complete the globe-encircling telegraph line, designed to link together the transmarine homelands of the British people on the five continents. It will prove an Imperial service in every sense. It will greatly promote the commercial and industrial well-being of all the parts. It will strengthen their relationship, and enable the whole fabric the better to withstand any stress or strain which the future may bring. There is a rapidly growing desire on the part of the British people everywhere to strengthen the ties and multiply the links which unite the Mother Nation with the Daughter States. This feeling of attachment prevails in Australia and New Zealand. It is especially marked in Canada, and the writer feels himself warranted in expressing the foregoing views on behalf of Imperial-

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minded Canadians. Their name is legion, and they are prompted only by one spirit. Their ardent desire is to join cordially and actively in building up the Empire on an enduring basis that it may long continue to confer benefits on the human race. Ottawa, 14th June, 1902.

APPENDIX XIII.

NATUBALISATION. No. 1. Governor-General the Earl of Minto (Canada) to Mr. Chamberlain. (Eeceived sth May, 1902. Sir, — Government House, Ottawa, 21st April, 1902. In reply to your circular despatch of the 10th October last asking for the views of this Government on the recommendations of the Home Departmental Committee in regard to the law relating to naturalisation, I have the honour to enclose a copy of an approved minute of the Privy Council, embodying a report on the subject by the Minister of Justice. It will be observed that Ministers express their concurrence in the principle that residence in any British possession should qualify for full naturalisation equally with residence in the United Kingdom ; but suggest that, in harmony with the amendment by which it is proposed to substitute " the King's dominions " for " the United Kingdom " in the declaration by the alien as to his place of future residence, it should also be provided that past residence for a period of five years within " the King's dominions," instead of within " the United Kingdom," should satisfy the condition of residence required by the naturalisation law. I have, &c, Minto.

Enclosure in No. 1. Extract from a Beport of the Committee of the Honourable the Privy Council, approved by His Excellency on the 12th April, 1902. The Committee of the Privy Council have had under consideration a circular despatch, dated 10th October, 1901, from the Bight Honourable the Secretary of State for the Colonies, transmitting the report of the Departmental Committee appointed by the Secretary of State for the Home Department to consider the doubts and difficulties which have arisen in connection with the interpretation and administration of the Acts relating to naturalisation, and requesting to be advised whether legislation for the amendment of those Acts is desirable, and, if so, what scope and direction such legislation should take. The Minister of Justice, to whom the said despatch was referred, observes that the report of the Committee recommends that the existing law relating to the acquisition and loss of British nationality be consolidated with certain amendments suggested by them. Paragraph 31 suggests that if it appeared that under a law in force in any British possession the conditions to be fulfilled by aliens before admission to the rights, privileges, and capacities of British subjects to be enjoyed within the limits of the possession included conditions which were substantially the same as those required for the grant of certificates of naturalisation under an Act of the United Kingdom, the Governor of that possession should be empowered to grant a certificate of naturalisation to have the same effect as one granted by a Secretary of State. And the same paragraph further suggests that in all other cases the Governor might have power, in his discretion, to recommend to the Home Government for a certificate of naturalisation any alien whom he could certify to have satisfied within the possession conditions identical, mutatis mtitandis, with those required for naturalisation in the United Kingdom, and that the Secretary of State might in his discretion grant a certificate upon such recommendation. The Minister states that the law in force in Canada is less exacting than the proposed Imperial Act, and as the conditions therefore would not be " substantially the same," the GovernorGeneral of Canada would not be able to grant such certificate of naturalisation. The Governor-General in Canada would only be able under the second above-mentioned proposals to certify that an alien had satisfied in Canada the requirements, mutatis mutandis, for naturalisation in the United Kingdom. The Minister recommends that the Imperial authorities be advised of the approval of the Government of Canada of the principle that residence in one of the British possessions should qualify for full naturalisation in the same way as in the United Kingdom, and, further, that it would be simpler and avoid cases of hardship if the qualification with regard to past residence could be altered by substituting the words " the King's dominions " for " United Kingdom," in the same way as is proposed for the intention to be declared for future residence. The Minister states that under the law, as proposed to be amended, it would seem that an alien who had resided five years in either the United Kingdom or in Canada would be able to obtain full naturalisation, but an alien who had resided four years in the United Kingdom, followed by four years' residence in Canada, or vice versd, would be unable to obtain naturalisation in either country. 16—A. V.

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The Committee advise that His Excellency be moved to forward a certified copy of this minute to the Bight Honourable the Secretary of State for the Colonies. All which is respectfully submitted for His Excellency's approval. John J. McGee, Clerk of the Privy Council.

No. 2. Naturalisation Committee to Mr. Bitchie. Sir,— Whitehall, 18th June, 1902. In accordance with your instruction we have given our careful consideration to the Colonial Office letter of the 16th ultimo, forwarding copies of communications received from the Governments of certain of the self-governing colonies in regard to our report on the question of naturalisation, and we submit the following observations thereon. In drafting our report we considered the question whether a person applying for a certificate of naturalisation should be required to show that he had resided for five years within the jurisdiction of the naturalising authority to whom the application might be addressed, or whether, so long as the applicant could show that he had resided five years within the King's dominions, it should be immaterial that he had during that period resided within the jurisdiction of more than one naturalising authority. We recommend the first alternative. We considered that five years' residence in the United Kingdom or some one British possession would be a proper guarantee of a definite intention to continue to reside within the dominions, and that if it were permitted to an applicant for naturalisation to reckon five years' residence made up of shorter terms in various parts of His Majesty's dominions, difficulties would arise in reference to evidence of residence and fitness for naturalisation. We adhere to this view. With regard to the remark of the Minister of Justice of Canada that the Governor-General of that Dominion would only be able, under the proposals of the Committee, to certify that an alien had satisfied in Canada the requirements, mutatis mutandis, for naturalisation in the United Kingdom, we would observe that we contemplated that, speaking generally, the Governments of the several colonies would bring their existing "naturalisation " laws up to the standard requisite for enabling them to grant full and complete naturalisation, and make whatever supplementary provision they might think fit for the grant to aliens, under provision similar to that of section 16 of the Naturalisation Act of 1870, of purely local rights. If it were made clear to the Canadian Government that at present they are entirely without power to grant complete naturalisation, and that it is proposed to give them such power and at the same time to leave them unfettered in the matter of the grant of local rights to aliens, they would probably feel no further difficulty in the matter, especially if it were pointed out to them that, as regards the passage in our report which has attracted their particular attention, our proposals are that the Government of the United Kingdom shall have no greater powers than those which we have recommended to be conferred on the Governments of other parts of His Majesty's dominions. The papers referred to us do not appear to call for any further observations. We are, &c, Kenelm E. Digby. F. 11. Villiers. D. FITZPATRICK. W. E. Davidson. The Eight Hon. C. T. Bitchie, M.P., &c. H. Bertram Cox.

APPENDIX XIV.

PRECIS OF SOUTH AFEICAN COEBESPONDENCE WITH EEFEEENCE TO SUBJECT 5 FOE DISCUSSION AT THE COLONIAL CONFERENCE. The question of the admission to practise in the new colonies of " duly qualified members of the learned and skilled professions now admitted and hereafter to be admitted to practise in the Dominion of Canada, the Commonwealth of Australia, and in New Zealand " has engaged attention with reference to (a) surveyors, (b) legal practitioners, and (c) doctors and chemists. Surveyors. (20511/02, 16312/02.) As to (a) Lord Milner and the Government of New Zealand have already agreed in direct correspondence to accept the principle of reciprocal admission of qualified surveyors, with the proviso, on both sides, that a license or diploma is presented, obtained on examination, equal to that which now rules throughout Australasia, and accompanied by a letter of recommendation from the State Examining Board which issued it that the surveyor named is personally and professionally reputable and up to date. Arrangements for such examinations in the new colonies will doubtless be made in due course, the surveyors' examination in the Cape and Natal affording a model.

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T.esral practitioners. As to (b) legal practitioners, the existing position as regards the Transvaal is defined in subsection (ci) of Proclamation 14 of 1902, which enacts that the colony will admit "any person who shall have been admitted to practise as an advocate in the Supreme Court of any British colony, and who at the date of his application for admission to practise in the colony remains enrolled as an advocate of such Supreme Court as aforesaid, provided that such person (1) shall have passed an examination in law which at the date of his application for admission as aforesaid is covered by a notice issued in terms of subsection (a) of section 12 (i.e., a notice by the Governor that such examination is deemed equal to the examination for the degree of Bachelor of Laws in the University of the Cape of Good Hope) and (2) shall for a period of seven years successively have practised in such Supreme Court as aforesaid exclusively as an advocate and not in partnership with any attorney of such Court." The conditions of admission for attorneys are practically the same. As regards the Orange Biver Colony, a similar Proclamation has not yet been issued, but that colony will presumably be brought into line with the Transvaal as in other cases. 25074/02, 19th June. Lord Milner's opinion is that the above provisions are sufficiently liberal, and that no general undertaking on the lines of the New Zealand notice of motion should be given. He notes that though reciprocity cannot be demanded now, in view of the special circumstances, it will without doubt be demanded at a later date. As regards medical practitioners, dentists, and chemists or druggists, provisional arrangements have been made pending the establishment of a Medical Council similar to the Medical Councils which regulate admission to the practice of these professions in the Cape and Natal. Under this provisional arrangement persons desiring to practice these professions in either the Transvaal or the Orange River Colony must obtain a license from the Colonial Secretary of the colony, after submitting for his examination and approval their diploma or certificate, and, if required, evidence of their identity and good character. Licenses are granted to persons on a British medical register or entitled to be registered in Great Britain and Ireland. Lord Milner reports that for the purposes of licenses to medical practitioners the Transvaal Government accepts diplomas from the following colonial and Indian Universities : Adelaide, Melbourne, Sydney, New Zealand, Bombay, Calcutta, Madras, Punjab, Malta, and the Ceylon Medical College. It will be seen that the Transvaal Government recognises diplomas to which Part 11. of the Medical Act, 1886, has been applied,* and admits practitioners from those British possessions whose Governments recognise the principle of reciprocity. It is, however, understood that the Canadian Provincial Governments are not willing to extend reciprocal advantages to British medical practitioners, and have not entered into any arrangement under Part 11. of "The Medical Act, 1886." In the case of chemists and druggists there is no information as to details. Generally speaking, Lord Milner's view is that professional men from the self-governing colonies should be admitted to practise in the new colonies, unless the standard of examination and experience is distinctly lower than that required in the new colonies. He thinks, however, that there should be reciprocity in such matters. It has been suggested that a local committee should be appointed to consider the matter and formulate proposals. Colonial Office, 28th June, 1902.

* Part 11. of the Medical Act provides for the recognition of diplomas of those countries which give to British medical practitioners such facilities for practice there as seem to the King in Council to be just.

Authority: John Mackay, Government Printer, Wellington. -1901.