IMPERIAL TRADE PREFERENCE

Taranaki Daily News, Volume L, Issue 59, 9 May 1907, Page 3

IMPERIAL TRADE PREFERENCE

MR. LLOYD-GEORGE'S SPEECH. COLONIAL MOTIONS CARRIED. London, May 7. Mr. Lloyd-George, in the course of his speech, said the Government fully shared Sir J. C. Ward's desire to bring the colonics nearer. The Government realised that the Empire grew or produced almost everything it needed. The problem was how to bring these products to the markets at rates whicJwould not unduly handicap the colonic >n conjunction with foreign countries bir J. G. Ward, Sir W. Laurier, am others held that the best way was U reduce the natural disadvantage of dis tanee, and thus ensure prompt and cliea[ delivery of food and raw materials. Mr Lloyd-George admit led that aceoleratioi of inter-Impelia! communication would benefit all. He meant by increased facilities for the sale of goods general developments in trade and opportunities for extended emigration and an advance towards the unity of the Empire. Tlie Government had no concrete scheme. He submitted the problem was complex and difficult, but believed not beyond the resources of statesmanship. While preferential tariffs must involve duties on corn and raw materials, increasing the prices, improved transport facilities would probably cheapen the prices of colonial products. He did not propose then to submit a definite plan; it would be better to elaborate schemes slowly after thinking out the problem. When such schemes were prepared and presented with the full responsibility of the re- . spective Governments, each Government 5j would examine and confer further. ],Lj^* r - Lloyd-George continued: The Go--■fWKment, it had been said, had given the cold shoulder to the Colonies. They had given the same answer that the Colonies'would have given had the British Government tried to induce them to change their fiscal system. They were unable to give any other reply, as the Colonies' representatives knew before leaving their homes. He asked them to consider (he condition of a thicklypopulated country like Britain, which depended for its supplies from other lands, and with conditions very different from those of the colonies. No alteration of the fiscal system would end the blemishes of our social system; the causes were deeper and older. The Government believed a change from free trade to protection would simply aggravate the existing difficulty. The colonies, profiting by the lessons of the Old World, were dealing with social and economic evils effectively before they hardened into malignity. The Government appealed to the Colonies not to countenance any scheme of however much profit to them which involved risk of ; increasing the existing evils of the older country.

Mr. Deakin vainly urged earlier and later sittings in order to expedite business;

At the Conference Sir W. Laurier's motion reaffirming the preference resolution of 1902 was carried after the British Government had recorded its dissent.

The British Government's motion was amended by Mr. Deakin and Sir J. (i. Ward, and then carried. It leaves each part of the Empire at liberty to select the most suitable means of promoting greater freedom and fuller development of commercial intercourse within the Empire, and recognises the desirability of co-operating on matters of mutual interest. I

SIE W. LYNE'S OUTSPOKENNESS.

London, May 7. Sir W. Lyne (Federal Customs Minis-

ter) was ovationed at Sheffield. Workmen were especially enthusiastic. He addressed a large meeting of members of • the Chamber of Commerce in the Cutlers' Hall on the lines of his Conference

r speech, but was more outspoken. He % tefered that Australia was prepared to ■" Britain with all the wheat at 4d a bushel cheaper than the Argentine's present prices. AIT the statements about a dear loaf were absolute moonshine.

After the Conference speeches there was no excuse for asserting that the Colonies did not favor preference. At present the Australian farmers had no guarantee that Britain would not give their market to foreigners. Surely! if they were able to get a steady supply at same or at lower rates the British

ought: to be willing to take it from their own flesh and blood. Referring to the duty recently placed on American farming machinery, Sir William Lyne stated that he was prepared to increase it if that would induce British manufacturers to make that machinery. He emphasised the fact of the disproportionate growth of foreign shipping and manufactures in the harbors of Australia with the beggarly increases — in some cases decreases —in-British trade. While Australia expected for many year's to be dependent on the British navy, yet shortly it would be proved that she was prepared to help herself and also help the Motherland so far as the navy was concerned. AFRIKANDER BOND DIVIDED. Capetown, May 7.

Mr. J. X. Merriman, at VictoTi;! West, Cape Colony, spoke against prefeivti.e showing that the Afrikander Bond was divided on the subject. SPEECH BY WINSTON CHURCHILL. PBOM PARTY POLITICAL STANDPOINT. Received Bth, 10.8 p.m. „. London, May 8. Lord Elgin said he was personally satisfied to accept Mr Asquith's and Mr Lloyd-George's statements, but Mr Winston Churchill (Under-Secretary for the Colonies) would say a few words. Mr Churchill dealt chiefly with the Parliamentary party and diplomatic aspects of preference. He declared that any scheme must contain dangerous possibilities for mischief, and prove an aggravation of political perils. He could imagine nothing more injurious to good relations than raising bitter ques«S of taxation every year, which was ain to lead to severe criticisms of the colonies, causing an inexhaustible Source of vexation. Preference wa.s only possible by means of taxation on six or seven staple articles of food and raw materials, which the United Kingdom would never accept. TTowover light the duties were, they were bound to affect prices, which the Impoverished people would be sure to resent. Concessions bringing such results would cause sullen anger, and were certain to breed unhappy consequences, besides greatly intensifying party bitterness, and immensely increasing the difficulties to which they were already exposed in the discharge of Parliamentary busiess.

SIB JOSEPH WARD'S SUGGESTIONS. DfIFLECTIOXS FROM DIRECT PREFERENCE QUESTION. -' i GOOD RESULTS EXPECTED. Beceived Bth, 1052 p.m. ?- London, May S. &. Hr Churchill said that many people '& favoring preference as evidence of goodwill, would recoil from the necessary schedules of taxation. He appealed to the delegates not to establish any relationship interfering with self-govern-ment, the root principles of the Empire, or consisting of any commercial tie formed by legislative means He thought it possible that good would come from Sir Joseph Ward's suggestions, which were a deflection from the direct question of preference. The colonies should bluntly state what taxes for preferences they would impose on the Motherland. It was highly dangerous to associate the idea of Empire in the minds of the masses with enhanced prices. If electors ever demanded the removal of the food tax, and it was found necessary to consult Government . scattered over the world, the structure Lfr the Empire would receive a shock as ft never before sustained. Some r - 'HJay when Imperial unification bad I : reached a higher development, men ► would regard the decision of the Confery ence of 1907 as a successful avoidant/' L of one grand wrong turn. E . CANADA'S VIEW. Sir Wilfrid Laurier said he preferred ■gyp re-affirm the ratolutfons of 180-' to ■g&> 0 ?t> B $ Mr DeaHirt, though he" con-

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jeurred with the first of Mr Deakin's two additional resolutions. U e stated that preference had certainly increased Canada's and Britain's trade, and admitted Britain's absolute right to adopt whatever fiscal system was best suited to her internal condHoiis. lie would be glad to apply Canada's lower preferential tariff to all British colonies. Sir Wilfrid Laurier claimed there was no justification on the ground of sanitation from continuing the injustice of I excluding Canadian live stock. !

Mr Asquith promised that the Boar' of Agriculture should seriously coii»i.icr the subject.

4 MR CHURCHILL TAKEN TO TASK. j SARCASTIC SPEECH BY MR DEAKIN Received Bth, 10.55 p.m. i London, May 8. Mr Deakin. replying to M r Churchill, thought he had allowed his imagination to run riot in an unnecessarily alarmed fashion. Even it no pr-fev-ence were conceded, questions of taxation must constantly arise in every legi lature in the Empire without such destructive results as Mr Churchill extravagantly pictured. The House oi Commons would deal with the husineson its merits, and adopt constitutional machinery to the country's circumstances, instead of making the State".development a fit measure of a mere standing order. Mr Deakin challenged the whole tenor of Mr Churchill's arguments, because they were based on a series of economic assumptions only applicable to particular circumstances, and entirely inapplicable to actual facts. Business competition, especially as reflected by national rivalry and colonial Parliamentary experience, showed that the dangers Mr Churchill predicted were not very grave. Mr Asquith ana Mr Churchill-had anathematised everything which even infinitesimally conflicted with the principles they held to be orthodox. Mr Deakin said he believed the only safe method of practical politics was to apply economic maxims experimentally and be governed by experience. Mr Churchill's doctrine would be fatal to all discussion on commercial relations. It would mean no prefer- , ence within the Empire, no commercial ! treaties outside the Empire, and no ne-

gotiations for most favored treatment. This involved the absolute isolation of the Motherland, which treated of a sick man who kept the invalid chair, because if he tried to progress, he must run the risk of hurting himself. If the British (iovernment proposed free trade i within the Empire, combined with a tariff wall against the outside world, Australia considered it with an open mind. * ffHB 1902 RESOLUTION REAFFIRMED.

BRITISH GOVERNMENT'S RE SERYATIOX.

Received 8;h, 11.13 p.m.

London, May S.

Mr Deakin said he personally regarded improved cable and steam communication and commercial agencies as all parts of a system, and preferential trade covered them all. Mr Churchill left before Mr Deaktn's sarcastic speech was concluded, in order to be sworn in as a Privy Councillor. Mr Deakin agreed the way to secure unanimity was to accept the olj form of resolution of 1902, instead of the rather simpler resolution he submitted. LorJ Elgin recorded the Government's reservation, declaring he saw no way of giving effect to the preferential resolution of 1902 by any alteration of the fiscal system of the United Klngcom.

Sir Wilfrid Laurier's motion of reaffirmation was carried, subject to Lord Elgin's reservation. Dr Jameson again moved that his postponed resolution be submittej on Monday.

Mr Asquith opposed, declaring a casus omissus.

Mr Botha, an/l the British Government dissented, but the rest of the delegates concurred.