A.—6.

Between the years 1921-22 and 1924-25 Britain's share of Australian competitive imports has increased from £52,000,000 to £68,000,000, but over the same period America's increase was from £12,000,000 to £23,000,000, and for the present year, as far as the figures go, they are further increasing in proportion. Those figures have certainly got to be considered. In Australia, for example, Great Britain has enjoyed a tariff preference which applies to 90 per cent, of the British goods imported, and the value of the preference averages about 12-2 per cent, of the value of the goods. There is also a sentimental preference, very much greater than most people realize, which has been operating all the time for the benefit of Great Britain. Overseas Trade of the Dominions. There is only one other angle of this question that I want to say one word about, and that is about the overseas trade of the Dominions. This trade has been less seriously affected by the war than the trade of Great Britain. We are a great distance from the scene of actual operations ; we have huge internal resources which are all the time being expanded. We have also to remember that, although the purchasing-power of the peoples of the world has diminished, they still must buy those things which are required for either the sustenance of their people or the restoration of their industries —the very foodstuffs and raw materials which we produce. The figures of Dominions trade thus show a great expansion.

Total Trade of Dominions, 1880-1925.

I would call your attention particularly to the figures of the post-war years. An even more significant point, however, is the direction of the export trade of the Dominions and India.

Exports of Four Great Dominions and India to Great Britain and to Foreign Countries.

An examination of these figures shows that the tendency has been for an increase in the export trade of the different Dominions to foreign countries, and a reduction of the proportion that Great Britain is taking. Why I would desire to quote those figures is to stress this point, and to stress it strongly, that it is a most undesirable position. If we look forward to inter-Imperial trade and closer relations inside the Empire, then it is unfortunate that the proportion we are taking from Great Britain on a competitive basis should be reduced, while, on the other hand, we are beginning to look more and more to foreign markets for the sale of the things we produce. That unquestionably is the trend at the present moment, and I suggest it is the task of this Conference to see if we cannot definitely find some way in which we can check this tendency. I have been drawing, I quite admit, rather a gloomy picture of British markets and the possibilities of British trade, but, as I said at the beginning, I feel compelled to do it because in Australia we believe in the idea of inter-Imperial trade, and we believe there is much that we can do at once. British Exports of Motor-cars to the Dominions. One particular matter I want to say a word about, because I think it does afford a practical issue for definite action, is the question of motor-cars in Australia, and generally in the Dominions. At the present time a considerable number of British motor-cars are being sold in Australia, for example,

68

Country. 1880. 1901. 1923. 1924. | 1925. | I |_ I I' .. (£1,000) (£1,000) (£1,000) (£1,000) (£1,000) Canada .. .. 29,000 71,000 411,000 417,000 447,000 Australia .. .. 50,000 92,000 247,000 284,000 302,000 New Zealand .. .. 15,000 28,000 87,000 100,000 106,000 South Africa .. .. 18,000 55,000 91,000 101,000 110,000 Total.. .. 112,000 246,000 836,000 902,000 965,000

Exports to Great Britain. I Exports to Foreign Countries. Empire Country. j ■. 1913. 1923. 1925. I 1913. 1923. | 1925. I | (£1,000) (1,000) (£1,000) (£1,000) (£1,000) (£1,000) India* .. .. 40,446 57,780 58,864 95,183 144,222 183,381 Canada* .. .. 44,247 74,011 102,569 39,661 127,707 144,643 Australia .. .. 33,971 51,523 68,624 33,803 j 50,994 75,247 New Zealand.. .. 18,088 37,213 44,073 1,622 i 4,535 7,669 South Africa .. 58,829 57,020 43,988 3,972 11,260 15,525 Total .. | 195,581 277,547 318,118 174,241 J 338,718 426,465 * Twelve mouths ending 31st March of year following that stated. Percentage increase to Great Britain, 62'6 ; to foreign countries, 145-0.