A.— 6

APPENDIX 11. STATEMENTS REGARDING INTER-IMPERIAL TRADE. 21st and 22nd October, 1926. STATEMENT BY THE PRESIDENT OF THE BOARD OF TRADE. Sir Philip Cunliffe-Lister : The object of the Imperial Economic Conference three years ago was to devise, in consultation, ways and means of developing inter-Imperial trade. The success of that Conference is to be found in the growth, and still more in the future prospects, of trade within the Empire, and in the spirit engendered and brought home to our people. I have circulated to the Conference memoranda showing in general and in detail the growth of inter-Imperial trade. A few figures will serve to show the size and importance of the trade between the Mother-country and the other parts of the Empire. Growth of Inter-Imperial Trade. In the first half of 1926 one-third of our imports came from the Empire. In the same period nearly half of our exports went to the Empire. Both these figures include trade to and from the Irish Free State. To obtain a fair comparison with the pre-war period that trade must be excluded. But, even so, the figures are hopeful and suggestive. In 1913 the Empire proportion of our imports was 24-87 per cent. In the last twelve months the proportion had risen to 31 per cent. In 1913 the Empire took about 37 per cent, of our exports ; in the last twelve months the Empire took about 42 per cent. This volume of trade is enormous in itself ; but when we consider the relative population of the Empire and the rest of the world the proportion and the growth are still more remarkable. And when we visualize the further possibilities of development we must find hope and encouragement in a difficult time. I have dealt with the direct trade between this country and the Empire. During the same period there has been a considerable growth in the aggregate external trade of Canada, Australia, New Zealand, and South Africa. Indian trade, too, has shown a marked revival. India has passed through a difficult time when the prices of what she had to buy ruled far higher than the prices she could obtain for her commodities. That discrepancy is being steadily reduced, and the approximation of prices, coupled with bold development schemes such as the Sukkar barrage to which the Maharaja of Burdwan referred, are reflected in the improvement of her export trade and in the volume and character of her purchases. Prospects in many of the colonies are bright. Improvement in rubber and tin prices has brought prosperity to the Malay States ; improvements in transport in Africa bring a rapid growth in Imperial trade. Need for Further Development. We are fortunate in these prospects, for the need of the development of trade within the Empire is as great as the opportunity . Goodwill is a tremendous asset in business, and each year adds to the goodwill of our mutual trade and to the appreciation of its value. We shall need each other's markets during the next few years, in particular because of the economic after-effects of the Great War and of their correction. Foreign countries which are seeking to stabilize their exchanges will inevitably be forced to restrict their credit and their purchases and will buy less. The more we buy and sell within the Empire, the easier it is for us to maintain our own exchanges. Factors in Inter-Imperial Trade Development. It was demonstrated at the last Imperial Conference how closely trade depends on population. The converse is equally true —that the capacity to absorb population depends on trade. The Conference will be discussing the problems of Empire settlement and migration on another occasion. I only want to emphasize now their direct bearing on the development of inter-Imperial trade. If I were asked to name a in sentence the most important factors in securing this development I think I should be inclined to say, Migration, transport, sanitation. The growth of trade between the Empire and this country must be attributed largely to the growing appreciation of what, economically, the Empire means and can mean. Effect of the "Buy British Goods" Campaign. The Economic Conference three years ago focussed the attention of our people on the need and the possibilities of Empire trade. The British Empire Exhibition showed them in an arresting way the infinite variety of Empire production. The " Buy British Goods " campaign in this country has brought home to them how much an increase in Empire trade depends upon their individual efforts. Empire Shopping Weeks have become a regular feature throughout the country. Buying British goods is becoming a national habit. It will be convenient if I summarize briefly the action which has been taken here consequent on the Economic Conference to help and stimulate Imperial trade. I have already referred to the initiation and effect of the " Buy British Goods " campaign.

53