The Daily News. SATURDAY, AUGUST 3, 1918. IMPERIAL PREFERENCE.

Taranaki Daily News, 3 August 1918, Page 4

The Daily News. SATURDAY, AUGUST 3, 1918. IMPERIAL PREFERENCE.

There has come a lime in the history of the Empire when important and far-reaching decisions have had to be made—decisions that must inevitably overthrow principles which have taken deep root and become almost fixed laws. That this upheaval has actually taken place is one of the results of tht war, which has made the Dominions an active partner in Empire affairs, with a recognised voice in Imperial policy. In April 17, 1917, an announcement was made that the Imperial War Cabinet had unanimously accepted the principle that each part of the Empire, having due regard to the interests of the Allies, should give preferential treatment to the produce and manufactures of other parts of the Empire. This decision has again been confirmed, so that the principle may be considered as definitely settled. So far the subject appears to have been only academicaly treated, but the mere fact 'that British statesmen have given their adherence <o a system of preference after jealously adhering to tree trade for so many years, shows that the question of trade and its protection has taken on an entirely new aspect. Previous to August, 1914, the subject of tariffs was a matter of acute difference between the two great British political parlies in the State, hut it is now out of the question that the subject will ever be approached in tlie old controversial spit-it. It is interesting to note that before the war the approximate value of imports into the United Kingdom was £696,635,111! a year, and that out of this total over forty-seven million sterling were of German origin, and four and a half million of Auslro-Hungarian origin. It is not, therefore, surprising to find that the German exporters are viewing with dismay the adoption of preference in the British Empire, as it will impose such a handicap on German goods that they will be practically shut out from the markets throughout the British Empire, and the Allied nations, probably including America. The Germans were not only looking for large indemnities .wherewith , to restore the counr

try's financial equilibrium, but confidently regarded the end of the war as a great harvest time for trade, and have been accumulating goods to dump down in Hie world's markets, only to find that those markets will be closed to thorn. It may the position if we quot' u y?. the report of the sub-comrnitu-t.' of the advisory committee of the British Board of Trade, appointed in 1915, wherein is found the following:

We are of opinion that when the national supply of eertain manufactured articles, which are of vital importance to national safety, or are essential to other industries, has fallen into the hands of manufacturers and traders outside this country, British manufacturers ready to undertake the manufacture of such articles in this country shuold be afforded sufficient tariff protection to enable them to maintain such production after the war.

Tlie report also refers to tlie strong feeling in the Dominions in favor of preference, as well as the desire to arrange preferential trading with our allies, i strong argument was .also put forward as to the necessity for raising a portion of the required revenue by reasonable import duties. The economic conference at Paris further dealt with the matter, outlining the permanent measures of mutual assistance and collaboration among the Allies and for rendering them independent of enemy countries. This is a powerful weapon which is hanging over the Germans, and they are now realising that it is no bluff, but a stern reality, that, will smite them .at their most vulnerable point. The details have yet to be arranged, and though there will probably be differences of opinion yet, in view of the goal at which the Empire and'the Allies are aiming, those differences will doubtless be easily adjusted. It is gratifying to know that the decision as to the principle is settled beyond recall, and it should greatly tend towards enabling tlie Empire and the Allies to meet the heavy financial demands that the war will entail, and it is only just that Germany, the instigator of the war, should be the nation to suffer.