INTERCOLONIAL RECIPROCITY.

11

A.—No. 9,

The Hon. J. M. "Wilson to the Hon. W. Gisboene. Sic, — Tasmania, Colonial Secretary's Office, 17th August, 1870. (Paragraphs 1 to 10 inclusive identical with Victoria and New South Wales.) 11. In your last communication on the subject of the proposed Intercolonial Free Trade Conference to be held in Melbourne, under date the 28th March last, while declining to assent to the suggestion of an Australian Commercial Federation on the basis of a common tariff, you intimated that the New Zealand Government "would be prepared to recommend the New Zealand Legislature to join those of the neighbouring Colonies in asking for power, and if necessary in insisting on obtaining it, to make reciprocal tariff arrangements with other Colonies and Countries." 12. The resolution of the Conference which the Bill now submitted to you is designed to effectuate, deals only with the question of commercial reciprocity as between the Colonies. It was thought undesirable to complicate that question by mixing it up with the larger question of reciprocity conventions as between the Colonies and Foreign Countries, irrespective of Imperial treaties. 13. I venture to hope that the New Zealand Government will not refuse to co-operate with the Governments represented at the Conference, to the extent indicated by the tenor of the draft Bill enclosed herewith. 14. The demand for " power to enter into reciprocal tariff arrangements with other Colonies " would naturally pave the way for the concession of the larger power of treaty with Foreign States ; and you will probably agree with me that the concurrent legislation of the Australasian Colonies in the direction of Intercolonial reciprocity would constitute the most effective practical protest against existing Imperial prohibitions of differential duties, and would forcibly impress Her Majesty's Government with a sense of the necessity for relaxing the restrictions which the British Legislature, in deference to treaty obligations, has hitherto imposed upon the free fiscal action of Her Majesty's self-governing dependencies. I have, &c, The Hon. the Colonial Secretary, New Zealand. James Milne "Wilson.

Exteact from Despatch No. 48, of October 27th, 1870, (Executive,) to the Eight Hon. the Earl of KIMBEBLET. Bill No. 43. " A Bill to make better provision for the Interchange of Colonial Products and Manufactures between the Colonies of Australasia." In my Despatch to Lord Granville, dated 14th July, 1870, enclosing the Eeport of the Proceedings of the Melbourne Conference, I called, attention to the resolution unanimously arrived at by the Conference, " asserting the rights of the Australian Colonies to enter into arrangements with each other for the reciprocal admission of their respective products and manufactures, duty free, on such terms as may be mutually agreed upon." I further stated that my Ministers had undertaken to prepare a draft measure for submission to the several Australian Governments to give eifect to this resolution; and that there was a strong probability of identical legislative action in this direction being taken by the four Colonies represented at the Conference, as well as by New Zealand Queensland. This Bill is the measure to which I thus alluded, and empowers the Governor of this Colony to enter into arrangements with the Governors of the adjoining Colonies for the reciprocal admission of all articles the growth and produce of the Colonies, with the exception of spirits and tobacco, free of duty. My Advisers have received official information that the Legislatures of New Zealand and South Australia have concurrently adopted similar legislation; and that there is reason to believe that other Australian Colonies, whose Parliaments are now or will shortly be in Session, are likely to legislate in the same direction. There is no doubt whatever that the power to enter into reciprocal arrangements of this kind with adjoining Colonies would confer a very great boon upon Tasmania, by tending to develop its timber trade, and encourage other important branches of industry. I quite admit that it would be a preferable proceeding for two or more Colonies to enter into a complete Customs Union, as suggested in your Lordship's Circular Despatch of the 15th July, 1870. But although this Colony has demonstrated its anxiety to bring about a Customs Union of this kind, by initiating as it did, through my Responsible Advisers, the recent Intercolonial Conference at Melbourne with a view to that final object, local jealousies and diversities of views as to the incidence of taxation have rendered abortive all attempts to accomplish it. It appears to me, however, that the concession of the power to enter into reciprocal engagements will pave the way towards ultimate complete union. Friendly commercial and financial relations will, at all events, be initiated between such of the Colonies as may avail themselves of the permission to enter into these engagements, local jealousies now in force will gradually lose their influence, and the advantages of complete union become better understood and appreciated. Under these circumstances I would suggest to your Lordship that Her Majesty's decision with respect to this Bill should be postponed pending the expression, either by legislation or by petition to the Crown, of the opinions entertained on the question by the majority of the other Australian Colonies. I apprehend at all events, as the Attorney-General has pointed out in his Eeport, that it will be necessary for the restrictions imposed by the 27th, and possibly also the 31st, sections of the Act 13 and 14 Victoria, cap. 59, to be modified by Imperial legislation before the Eoyal assent can be given. Chaeles Dxj Cane.