IMPERIAL PREFERENCE

Taranaki Daily News, Volume L, Issue 59, 3 May 1907, Page 3

IMPERIAL PREFERENCE

INTEREST IN MR DEMON'S SPEECH COMPLIM EM TAIIY NEWSPAPER NOTICES. London, May 2.

The Time 3 says Mr Deakin's statement was a forcible comprehensive political event. The sentimental siJ.' of the question was for the moment almost the most important. It was emphatically the duty of a Government setting such store on sentimental ties to do nothing to wrench the strong sentiment of Empire. The Morning Post says the debate must extract from the Government an official version of their case against preference. It would hereinafter be the duty of unionists 10 obtain the necessary mandate from the electorates.

The Dally Mail says the Government s treatment of preferences was based oil the principle of a verdict first and trade afterwards. The Irony of it is that after denying the reality of the colonial offer they were doomed to heir colonial statesmen reiterating it. The Daily News nopes that Mr D«ikin will carry away the message that England will be glad! to give the colonies free trade, a free navy, common citizenship, and cheapest money, but would not tax food or restrict industry.

The Standard relies on colonial statesmen's educative influence on the Motherland to even up the disastrous January of 1906. Nearly one half of the nation ia prepared to accompany them along the whole road. The Tribune congratulates Mr Deakin on his thoroughness and ifrankness, and adds that that is how the people of the . Motherlands wish colonials to speak out and our own statesmen to answer. There was no playing of "Tintara wine and, pippins" (this his reference to Mr Lloyd-George's sarcastic remark of February 22) with Mr Deakin's speech, but on itß merits the question of freetraders' opinion against a reversal ot the policy waj strengthened by Mr Deakin's healthy, business-like franknes.

(Replying in the House of Commons to a speech by Sir Gilbert Parker, who pointed out that when, in 1859, the late Mr Gladstone made a treaty with France preference to the Cape was withdrawn, and the Cape's export of .Wine to Great Britain dropped immediately from £200,000 to £17,000, and to-day was insignificant, adding that it was reasonable to suppose that if "preference had been maintained Britain might now be importing a million's worth. The Right Hon. D. LloydGeorge (President of the Board" of Xnufe) asked whether these were seriously restricted to proposals to reduce the duty on wine and found the Empire on "lintara wine and pippins, "J

MR. DEAKIN'S APPEAL.

Received 2nd, 9.44 p.m. London, May 2. Mr. Deakin stated that the gross totals of Australian trade were Satisfactory, but the analysed proportionate development with Britain and other nations argued that there was little apprehension of effective retaliation from any foreign country. fJermany and the United Stales had too much at stake to resent preference by hostile measures, and also Had no right to be resentful. Britain's purchasing power was an enormous asset, and ought to be used unitedly. Dealing with the Australian tariff, he explained its opportunities fur ' preference, showing that one-third of the imports were duty free, and more than half of these irom foreign countries earried a 10 per cent, duty. That, besides encouraging local production, would lead to quite a large diversion of trade to British traders, while the 15 per cent. could also be operated upon. The great object in transferring our purchases from foreign countries to Britain could be solved by increasing, as against foreign countries, our existing imports Therefore, we had ample opportunities of meeting concessions with concession. Mr. Deakin, concluding bis speech on preference, emphasised the action of Canada in negotiating a reciprocal tariir with Germany. Received 2nd, 10.14 p.m.

Mr. Deakin continuing, said that since Federation, the Commonwealth Parliament had been so occupied with absorbing business that it was only now becoming free to deal constructively with the fiscal system. This would be "undertaken at this year's session, wlien revision of all duties will be attempted. Thus, said -Mr. Deakin, we are iu an exceptionally favorable position to consider the preference proposal. Tins might range frera a free gift, like South Africa's and Canada's, to large concessions in the Home market. Tariff revision would afford an opportunity for reconsidering the Bill conceding preference to goods conveyed in British ships, manned with white labor, which passed in 1006 without full deliberation. That preference was only an instalment, and but for the

New Zealand treaty would probablynot have l»en submitted that session. Referring to the Colonial Office's serhns objection, Mr. Deakin said the Government had to choose between the loss of the Bill and acceptance with disabilities. He was not yet satisfied tliat treatv obligations really interposed the impediments which the Colonial Office suggested. Australia had concluded an arran"ement with South Africa, especially appropriate to that country, and would probably conclude similar treaties with Canada and New Zealand. Australia was also prepared, if Britain was disposed to negotiate, to consider preference specially adapted for the mutual advantage of the Motherland and Aus-

tralia's trade. Last election Australia exhibited a distinct advance in publicopinion in favor of preference. Any adequate reciprocity from Britain would receive great favor in Australia, where the enormous possibilities of local production were as yet but partly utilised. Jlr. Deakin emphasised the gTeat advantage that would accrue from the development, under joint action, of means of communication by ships and cables. \Ye ought, he said, to unite in diminishing the distance between us by the greatest possible improvement in quickness and cheapness of interchange. He hoped the day would soon come when a committee of experts would lie appointed to review Imperial trade, and take every steap to increase it between the constituent parts of the Empire. Preference, begun as a business operation, would assist to build the Empire commercially, industrially, and productively, keeping the British race within their own vast territories. There should be preference in population, trade and channels of trade, and every form of co-operation between the Colonies and the Motherland ought to be sought for and utilised, though advances in this direction must be cautious and more or less experimental. Our safety and future prospects were based on unity of purpose and action, obtained with the concurrence (if all communities composing the Empire. Britain's trade, which Australia was able to supply wholly or in part, amounted to 213 millions. Australia at present supplied ten millions, other British possessions forty millions, and foreign pountries 160 millions. Mr. Deakin, correcting the precis of the first portion of his speech, denied using the term "bring foreign nations to tl)eir knees,"

able speech by our premier, preference as distinguished FROM PROTECTION. PRICES WOULD NOT BE RAISED. SOUND BUSINESS ADVOCACY. Received 2nd, 5.45 p.m.

London, May , Sir Joseph Ward, in an able speech, impressed the Conference. Tie stated that New Zealand's attachment to the Empire naturally induced colonists to desire to give the Motherland the preference, asking reciprocity in return.-Jle g*. regretted, that the question, which ought J®*- to be above party, become involved in PVty contests. He declared there was a .distinct aud esHcnttnl diff<-.ivu< e between preference and the greater and ! more complex question of protection. 9*he latter drew a ring- fence of dutv round any specified article, involving an increase in price. The effect of preference would not be to raise the price or imported products, hut enable colonial products to undersell the foreigner, thns &■»- obtaining the market. He believed that raK t&e eompetftlpn between the colonics to prevent the

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prices of their pvodm-ts equalling of foreign competitors. Kecoived 2nd, 10.lt i>.m.

Sir Joseph Ward s»id lie understood that, although New Zealand conceded preference to certain British goods in 1003, competition between British merchants preventeud any increase in price to the consumer, though they were able to undersell the foreigner. If he were an English politician, ho would advocate cheap food for the masses, and if he thought preference upon Colonial products increased the price of food, he would not support it. He strongly believed that competition would ensure tair value, and keep down the price. Me directed attention to tin' large decrease m liritish trade with the colonies,.quoting the Hoard of Trade returns to show from 11)04 to lWlli British trade with Australia and New Zealand decliii■-: piIO.OOO, compared with 18!)!) to IliUi. I his was suggestive of the inroads of loreigu countries making a capture of British trade, and necessitated consideration Ilvin the British authorities and merchants, whether the loss was due 10 causes curable by practical methods, llie presence of three British Ministers induced him to emphasise the fact that Australia and New Zealand, though yet in tneir inianev, with a population of only live millions, were the third lar«cst purchasers of British products. oiilv"lndia and Germany exceeding them, though India s population was 23!) millions and Germany's (j!) millions. lie believed that, while the limit of trade between

Britain and Continental countries wa:already almost reached, trade with Australia and New Zealand would be an ever expanding one. It was difficult to form any conception of what even the next twenty-Jive years would do in the way of development in those coutries. It was obvious tliat the teeming millions inhabiting Germany and other highly protective Continental countries must increase their manufactures and industries in order to provide employment for their ever increasing population. British statesmen and people ought to carefully consider that, also the extraordinary fact that Australia was only behind Germany in purchasing ability, and already purchased one-half as much as India purchased. Received 2nd, 11.28 p.m. Continuing, Sir Joseph Ward said that such a practical object-lesson ought to he studied. He supported preference for business and Imperial reasons, business that required the consideration of Britain and the colonies. New Zealand's preference has been given entirely as a matter of sentiment, kinship, and attachment to the Empire. . Ninety per cent, of New Zealanders were British, and it was therefore not unnatural that they display this splendid feeling of sentiment. Without under-valuing that force, as a plain business man, he was unable to shut his eyes to the fact that sentiment alone, although a great bond of union, was insufficient to build up and solidify a great Empire. He believed the powerful introduction of the self-interest of the peoples of different parts of the Empire would make the sentimental tie now existing much stronger, and rightly regarded preference to prove advantageous, both to the Motherland and the Colonies. He.did not attempt to disguise that New Zealand wanted it to be advantageous to her, but the colonies were not so selfish and stupid as to suppose that England would reciprocate to her substantial hurt. The Commonwealth's export and import trade (110 millions) compared very favorably per head with the United Kingdom's New Zealand trade, between thirty and forty millions. If Colonies

still in their infancy do trade valued between one hundred and forty and one

hundred and fifty millions, what may we expect it to grow to under favorable conditions, and under the stimulating influence of preference. It would be to England's advantage, even if it necessitated some preliminary sacrifices of foreign trade, because it would be replaced bv at least an equal amount of increased

trade with the colonies. Britain ought to imitate foreign countries, establishing British Consulates or trade correspondents in British Colonies. .Sir .Joseph paid a high compliment to the Governors, who represented diplomacy and the policy constituting the link between

the old and newer countries, but it was derogatory to the dignity of their position that th"y were nut utilised as commercial avenues. Almost every foreign country bail consuls in Australasia, and it would be similarly advantageous if British consuls, or something akin, were established in each town, where British merchants could obtain full and detailed

[formation on any commercial matter

Mr. Lloyd-George interjected that a number of such appointments had already been made.

Continuing, Sir .Joseph Ward impressed on the Conference, especially British stater-meu. 1 1n? imperative necessity ot the Colonies and Motherland being brought closer together, lie had a mortal hatred of toll-bars, and bad only seen one during a decade, while driving in London to the Crystal l'alace recently. A greater one stood in the highway of commerce between England and her dependencies. He referred to the Suez Canal. Disraeli's acquisition of a suii-

stantial interest in the Canal was a bold stroke of genius. It was worthy of consideration whether it would not pay the British Empire and France, as the controlling Powers, if they agreed to pay a dividend to shareholders, so thai ships sailing under the British and French flags might pass through free of charge, or at nominal charges. Colonial producers would then be enabled to send perishable products in tramp steamers through the Canal, instead of via the

Horn or other routes. This would save time, besides proving advantageous to products exported. Also, improved facilities was certain to lead to increased trade. New Zealand would lie prepared to assist to provide the sum required, lie urged that Britain should join Australia, Canada, and New Zealand in .improved steam mail services between

them. He had nothing to say against existing services, but had his eve specially on a service across the Atlantic and Pacific, via Vancouver. lie was quite satisfied, if Mr. Deakin and Sir Wilfrid Laurier were willing to support him, that large and suitable class nf steamers could be secured with no great dillicully, shortening by days the time between Australia, New Zealand, and London. even bringing New Zealand within twenty days of London. This would strengthen the Imprrial commercial and

domestic ties. New Zealand had already entered into a reciprocal treatv with South Africa, and extended ilie existing 1.1 rill' to Canada, and was also willing to enter into a reciprocal treaty with Canada. Their extension of preference to Britain also showed they favored preferential trade witliiu the Empile, anil wished to see Britain respond. Wliei) lUitain and all her colonics had a preferential tariff, they could say to Germany, America, or other protected countries that Britain and her oversea dominions were prepared to consider a reciprocal treaty with highly-protected nations on certain articles of mutual advantage. If the Motherland and her

children combined, they were able to prevent Colonial products being subjec ted In high. ami t\l"lcii prohibitive! duties in foreig t i countries, He emphasised foreign countries' strenuous efforts to secure our trade by means of subventions to steamers and cheapening railway facilities. He admired the way some foreign competitors worked ( 0 obtain commercial extension, hut as a matter of se]f-pn>teetinn and with th" object of preventing a drift which might, eventually lead to disintegration. he urged, in the interest of our great national development. that we should have mutual Uv.de arrangement throughout lite Kmpm:. New Zealand would be ;j;!ad to con sider a reciprocal treaty with Australia. Doth were adju.-tim: their tarill's ne\t year. ami if possible. bring the two peoples into closer touch, lu view of the mutual advantage, lie was sure th.New Zealand Parliament would heartily .support. Since, lie said, the eommvn i>l policy of every great Continental nation was necessarily directed to the protection of its interests ami against, the interests of Britain* over-sen kith and kin. that warranted onr appealing to Britain to join in accomplishing what I honestly believe will vitalise and add to 111- strengthening and greatness of the Empire. [)\\ .Jameson (Cape-. Colony) and Mr. Moore (Natal) strongly supported profeivnee.

The V.ight Hon. Mr. A-iiptith replies tomorrow.

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