IMPERIAL PREFERENCE.

Taranaki Daily News, Volume L, Issue 59, 6 May 1907, Page 3

IMPERIAL PREFERENCE.

COLONIES' REJECTED ADVANCES. SIR W. LYNE'S OUTSPOKEN CRITICISM. London, May 3. Sir W. Lyne. in a vigorous, outspoken speech, declared that Mr. Asquith had been unnecessarily brusque and uncompromising. His attempts to belittle the advantage of the Colonial offers were scarcely fair. Australian preference, restricted to eight per cent, of the trade, would " profit of ,t 100,000; if more widely extended—as was contemplated—it might perhaps have yielded a profit of £1,200,000. Sir W. Lyne, replying to Sir James' Mackay, stated that it was unlikely the people of Australia, with higher social conditions, would place a Lascar, earning 4>/,d a day, in the same category as Australian seamen earning 4s to ss. J

Sir J. Mackay interjected: Lascais re ccive 9d per day.

Sir W. Lyne asserted that foreign shipping and trad. l were increasing m Australia far quicker than Britain. He feared Britain was losing its hold of the Australian markets, but preference would rectify this. Great Britain was really mare concerned than Australia. He advocated low Australian duties on British goods and higher on foreign. Australia did not want a onesided bargain, and if 2s per quarter preference were conceded to colonial wheat 20,000,000 more acres would be planted in the colonies. The concession would not raise the price of bread and the Colonies would be able to supply nearly everything Britain wanted.

Sir W. Lyne, continuing, emphasised the increasing keenness of foreign competition in the colonies, citing the latest statistics of foreign nations. They gave bounties and concessions of all kinds in order to increase trade, thereby increasing also their mercantile marine and theii reserves for naval warfare. If the British Government was so satisfied that it had got a mandate against preference, why did it hesitate to appeal to the country by a referendum, and find out if the country was still of the same opinion. He denied there was such a mandate.

Received 6th, 5.12 p.m. London, May 4. The precis of the conclusion of Sir W. Lyne'B speech was only issued on Friday evening. Means, he said, must be found to secure closer unity in commerce. The younger generation did not have the same instinctive attachment for the mother country as the one that was now guardians of the Empire's outposts. He warned the British' Government that trade was slipping away. When he left nearly half the shipping in Sydney was foreign. He was confident this question would be taken up throughout the length and breadth of the Empire, despite Mr. Asquith's discouragement. Though momentarily eclipsed, the cause of reciprocity and trade preference was certainly eventually to win. Australians, as kith and kin of the Motherland, resented being treated on the same footing as foreigners. It was possible, in connection with foodstuffs, to assist the Colonies at foreigners' expense, without any cost to the British consumer. Perhaps'it would be possible to raise revenue to assist old age pensions.

Sir W. Lyne, continuing, said that great shrinkage in British trade was inevitable, owing to high foreign tariff walls. Foreigners would not retaliate, Binee they required our wide market. The consolidation of the United States, the establishment of the Commonwealth, and the early federation of South Africa were all examples which the British Empire might follow. Mr. Asquitli's basic principle was that free trade had been adopted fifty years ago, and still held the field. Sir W. Lyne contended that free trade was unsuitable now, and must not be accepted as an inherited dogma. The Empire was valuable, and must be cemented by ties of kinship and commerce. He recalled Lord Carnarvon's phrase that all the products of nature are found within the Empire, and tluit .the scattered units of the Empire are capable of being marvellously united in sympathy and sentiment. Australia's preference was a modest step towards the goal of union. A policy of blundering, though possible in the case of war, would probably be disastrous in commerce. Australia's ten per cent, preference was really a larger advantage than Canada offered. He thought that some special consideration might be extended to Australian wine, lie emphasised the importance of providing more rapid communication with Australia.

. MR DEAKIN'S MODIFIED REQUEST

London, May 3

Mr. De.ikin inquired whether the liritirth Government, bein;_' absolutely determined against preference, would consider a proposal mi the lines suggested by Mr. Hofmeyer in 1887 and Sir (ieorgL Sydenham Clarke in Melbourne on Dth November, 1903, involving the creation of an Imperial fund by a one per cent, special import duty levied on all foreign goods entering British ports, the fund to be applied to a movement having for its object the development of the maritime communications of the Empire, improvements in the carriage of mails, cables, and other common Imperial ends, like dealing with the Suez Canal difficulty. Mr. Aspiitb said he was not prepared to answer without consideration. Later Mr. Deakin asked if the Government was to take their propositions into consideration. He said Britain could make up her contribution to the Imperial fund by any means she pleased bo long as she provided an equivalent. Mr. Deakin thought such a proposal well Worth examination in order to. ascertain if there was much in Mr. Asquitli's undertaking that the Government was prepared to look favorably on any proposal for improving inter-Imperial communication and the development of commerce and trade If the Government was favorable to the idea, then the Conference could arrive at a practical agreement. It would be better to wait for that or some similar scheme than to close the Conference without being able to show any advance. His great object was to elicit some positive proposal. Mr. Deakin's suggestion appeared to lie received with disfavor on the part of two Colonial representatives, also Mr. Lloyd-George and Mr. Churchill. Th - two latter consented to consider the matter. Both will speak on Monday. Sir J. Mnekay stated that if prefer ejjee were adopted the Indian manufacr urcrs would press for protection. The Morning Post asks why not.

The Times » doubtful whether ti.e development of India's possibilities will not be fettered in the interests of Dri tain's manufacture*. Mr. Deakin, in a letter to The Times emphasises that Australian preference would be the mere foremuner of preliminary overtures, in no way gatisfying Australian desires, siuee a large majority on the rolls has approved his programme, which in due course would be re submitted to Parliament.

Mr. lloffmeyer, speaking at Willing toil, said the Bond could not be expected to give idolatrous worship to tin- Empire like (he Britishers, but it had real interest in the maintenance of the navy. As a means to that end his tarill' proposals at the C'onlerenrc in 1 H.ST v,cr< originated. They gave approval to a differential duty by England and the Colonies on foreign gocds for the benefit of the navy, such duties working reciprocally. China's awakening and the Russo-Japanese war necessitated a powerful fleet. a Received sth, 5.12 p.m.

London, May 5.

The Hon. T. W. Smartt (Cape Colony "i described Mr. Asquith's speech as a hrilKant piece of special pleading. The old attaelynent for the Motherland was diminishing m the Colonies, and fresh iie« were needed. The "Empire would not hold together unices regard was paid to local conditions and local sentiment. Sir Wilfrid Laurier did not sympathise with Mr. Deakin's support of Mr. Hofmeyer's proposal, fearing its adoption would dislocate the Canadian tariff

Sir J. G. Ward hesitated to express approval. MR. BALFOUR'S OPPORTUNITY. (SUGGESTED NEW ItASfS OF TAXATION. Received sth. 4.10 p.m. London, M.i.y 4. Mr. Balfour, &pe«liing to the Primrose League in the Albert Hall, asked \vh«», after reading Mr. Asqnith's Budget Speech, could sny the fiscal system wis s»ai is factory; who. after reading the Colonial Premiers' speeches, could ih? feeling of the Colonies were mere transitory emotions. The only remedy of lessening fisea! burden, ImperiaMefeni'e, and eutjfag on social reform, was the

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BI.SCTBIC TELEGEAPH. —COPYBIQHI. extension of the basis of taxation. Tlic existing duties on articles of lavye consumption were from an ail valorem standpoint of preposterous magnitude. What was wajited was small duties on artieles of larger consumption, which would thus yield a large revenue without serious dislocation of trade, or laying a serious burden oil the consumer. When adopted, the system should lie used to meet the desires of every dependency, strengthening the bonds and bringing the Colonies and the Motherland together on a commercial basis, lie had no doubt that the policy of preference would ultimately be adopted by Britain, tut thought that when adopted it would b.' less advautagonii.-, (halt if the (ioverument had not turned a deaf ear to the Colonial proposals by b;i n<„ f iu ,: the door ill their faces. It was the mo.-t foolish form of Imperial statesmanship The whole spirit of the Government ... their action in every part, if not inconsistent with the maintenance of the Umpire, must drain it of its vital force ami strength.

I'iIKSS OPINIONS.

Loudon, May 3.

The Times says that Mr. AsquiuA stat mi. >nt \va- I he Coauuai l'rcmicts' state nems wcr: till .if ii .pc f.r.v- cii'tdruciive i-,eag'nati.,'i, Mid mi.■ gest a fight in the future and a 1 't"i • initiation :o niouid it to their ends. Th"v contemplate a progressive Ein.iire united by steadily increasing ties. Mr. Asquitii. in reply, was only able to offer on no essential point a rigid adherence to the old position. It was true that he ha» promised attention to communications, but from an economic standpoint far smaller compared with preference. "He pleads that his hands are tied. Are they tied against more than a protectionist t:u iff—preference based on the com duty? lias the electorate even denieif or affirmed the principle of preference'.' Mr. Asquith's attitude is the attitude of an extreme fiscal Puritan, not to say one of prudery." The Daily News says Mr. Asquith's and Sir James Mackay's case is unanswerable. The people of the Motherland are determined that prime necessities shall never again be taxed. This is a verdict whence there is no appeal. The Standard challenges the Govern nn-ut to submit the question of reciprocal preference to a referendum. Leaders of the Imperial element in the nation must now show the Colonial Premiei.that ttieir message is not in vmr.. Tl.e Daily Chronicle emphasises and the Morning Post admits that, regard ing tiie domain of trade and communications, the results of the Conference ha-.e not "ecu negative. The Post, however, contends that on the main ques'ien the vo-iv oi Inlia is only the voice of a department of the ?iritiib (io'.crnmtti! '.vhidi is admhiisteiing the country. It adds: "Tested by the • atue per head, the Australian market rincomparably more valuable to us than the German.'"'

According to the Daily Telegraph the jluilicr'a.-.d stands alone, desiring loss ihan in 1

Sydney, May 4.

The Herald,-after reviewing the position Mr. Deakin and liis party obtained at the elections, remarks: "For such a .Milu&ter to claim that he has a mandate irom Australia to oiler preference on his own terms is a course of politic il cond:iit which we can hardly define m parliamentary language. His astonishing colleague, Sir W. Lyne, nearly equals in onrontery the Prime Minister when he unites the Imperial Government to institute a referendum on the subject. ' Received sth, 5.25 p.m. London, May 4.

The Daily Chronicle asserts that Mr. Balfour's alteration of food taxes is a gigantic scheme, relieving the direct taxpayers at the cost of the poorer members of the community.

The Times makes a strong onslaught on Britain's fiscal system, which, il states, is the crudest known among civilised men. The Standard says the Government in refusing to entertain reciprocal preference, lias given Mr. Balfour the greatest opportunity of his life, and he has lust no time in assuring the country that lie is determined to utilise it to the utmost.

The Telegraph says Mr. Balfour's speech may prove the turning point in the fortunes of the parties. Henceforth, those desiring closer association between fisti-r nations and the Motherland must vote with the Unionists, and those bustile or indillerciit to the maintenance of the Empire must vote with the Radicals, The Westminster Gazette says Mr. Balfour's suggested small taxes, which no one will feel, are chimerical, and would lead into a morass of protection It goes on to say it is glad that Mr. Asquith does not take the view expressed by Mr. Cox and Mr. Wedgood. members of the House of Commons, that the Imperial Government's participation in 'such schemes as outlined by Sir J. G. Ward in the direction uf improved communications and the reduction of Suez Canal dues, etc.. would he worse than preference. To veto stub participation would.be fatal to a large part of our work as pathfinders and roaditiakers in new countries. The principle of free trade seeks the utmost freedom and facility for trade, and can be applied by making channels for trade where private enterprise for the moment does not suffice.