PREFERENTIAL TRADE.

Taranaki Daily News, Volume XXXXV, Issue 165, 16 July 1903, Page 2

PREFERENTIAL TRADE.

GERMANY AND BKIIAIN. PER PRESS ASSOCIATION. < Auckland, July 14. A Blue Book has been issued covering correspondence from May 1,1897 to July 8 hj, 1903, which elucidates Lord Irtnsdo wne's revelation cabled on June 16th. -» Owing to the South African colonies going into line .with Canada, Herr Rinhtbofen, German Minister for Foreign Affairp, feared that if the. Australian colonies did likewise, the conclusion of a new treity with Britain on the basis of the favoured nation treatment would be endangered. Lord Lansdowne replied that if Germany persisted in this attitude, a very wide and serious issue was inevitable, affecting ths fiscal relations of both Empires. Herr Rishtbofin thereafter express 3d his readhesH to exchange ideas regarding a mvhod for obviating the present difference, and invited Britain to . make suitable proposals. Lord Lansdowne replied that Britain / would certainly be ready to approach the discussion in the most considerate spirit. The Times declares, than Germany, < relying on our inability to' retaliate, . threatened to interfere with our internal affairs. Her change of front coincided with significant events in Britain. Lord Lusdowne showed Germany that it was illogical and impossible to retaliate on Britain for aote cf th> colonies if the colonies were considered simultaneously fisoally, autonomous,, and independent, but Lord Linsdowne contended that Britain and the colonies must be considered fiscally together. Sir Robert Giffen, the statistician, in a letter to the Times, suggests holding an inquiry into how far the self-govern-ing colonies are really protectionist. He declares that th » amount of the Empire's whole production which is reo.iviog the shelter of tariffs does not exceed one three-thousandth partiallowing for the protection of one hundredth part of Australia's production, Sir Robert Giffan adds that the increased purchasing powers of' the colonies from any reduction in their duties would not risoewanly be to the purohasa of additional British manufactures.

A Free Trade Union has b?en formal with Mr Arnold Morley as president. It is intended to urge that Mr Cham- ' berlain's policy is certain to complicate trade nl it ions with the colonies and endanger the stability of the Empire. The members of tbe Union inolude the Eirl of Aberdeen, Mr Afquith, Earl Beauch imp, Lord Oariiagton, Sir William Vernon Hiroourt, Mr John Morby, the Marquis of Ripm, Sir George Trevelyan, Sir Henry OampbcllBinnerman, and Sir El ward Grey, A new bodycilled the Tariff Reform League has absorbed the lecently eatablished Tariff League, Offloes are at Nj. 7, Pall Mall. The object of ths Tariff'R fo*m Liague is to promulgate Mr Chamberlain's polioy and begin a widespread dissemination of information. The Duke of 8u herland is President of the Tariff Ref >rm Le*gu». The commi tee of Unionist Free Traders, of whioh Sir Michael Hioks Biach is president, has organised a Free Food League with offices at 15,' Victoria s'reer. The committee uaani- ' mously resolved thtt with a view to securing u full debate of the preference tariff of ths Government, Mr Hsnry Hobhouse will move in the House of Commons a resolution calling attention to Mr 00-raberlain's proposal and asking for the p. oJuotion of pipers at threarlitst moment,

Lord L-insdowne's revelation was that Germany, in the course of negotiations which were still proceeding, plainly in'iuiated that if the other colonies followed Oinada's example, the Motherland wouli probably lose the most favoured treatment. Lord Innsdosvue hoped that Britain would ba abl i to adapt her treaties to the requirements of the colonies, and as Britain had hardened her heart in the case of it was pofsible to deU in - a similar spirit with similar sggrw* sions in other industries, The present he'plessness was almost intolerable. '