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In reply I have to request that you will inform your Ministers that action has been delayed owing to the absence of replies from the Governments of New South Wales and South Australia to the request for an expression of their wishes on the subject, and that the Governors of these colonies were reminded in July, 1894, and again in March last. I have, &c, EIPON. Governor the Eight Hon. the Earl of Glasgow, G.C.M.G.

No. 14. (No. 37.) Ottawa Confeeence, 1894. My Loed, — Downing Street, 28th June, 1895. In my despatch of the 13th December last I transmitted to you copies of the report of the Earl of Jersey, G.C.M.G., on the proceedings at the Colonial Conference at Ottawa, together with copies of the proceedings of the Conference. 2. Since then the questions discussed at the Conference have been under the consideration of the various departments specially concerned, and I am now in a position to place you in possession of the general views of Her Majesty's Government on the questions which formed the subject of the three resolutions classed together by Lord Jersey as dealing with trade relations. 3. The first two of these resolutions have for their object the repeal of legislation and the cancelling of treaty stipulations which, in the opinion of the delegates, obstruct the realisation of the policy indicated in the third resolution ; and it may be convenient that I should in the first instance explain the views of Her Majesty's Government with regard to that policy before discussing the first two resolutions. 4. The third resolution declares that : " Whereas the stability and progress " of the British Empire can be best assured by drawing continually closer the " bonds that unite the colonies with the Mother-country, and by the continuous " growth of a practical sympathy and co-operation in all that pertains to the " common welfare: " And whereas this co-operation and unity can in no way be more effectually " promoted than by the cultivation and extension of the mutual and profitable " interchange of their products : " Therefore resolved: That this Conference records its belief in the advis- " ability of a Customs arrangement between Great Britain and her colonies by " which trade within the Empire may be placed on a more favourable footing " than that which is carried on with foreign countries. " Further resolved: That until the Mother-country can see her way to " enter into Customs arrangements with her colonies it is desirable that, when " empowered so to do, the colonies of Great Britain, or such of them as may be " disposed to accede to this view, take steps to place each other's products, in " whole or in part, on a more favoured Customs basis than is accorded to the " like products of foreign countries. " Further resolved : That for the purposes of this resolution the South " African Customs Union be considered as part of the territory capable of being " brought within the scope of the contemplated trade arrangements." 5. With the preamble of this resolution the feeling, not only of Her Majesty's Government, but of the entire population of this country, is, I need not say, in hearty sympathy —a sympathy to which no proposal clearly tending to promote the stability and progress of the Empire can appeal in vain. 6. The unanimity of sentiment which prevailed throughout the Conference oh this point has been noted with pleasure by Her Majesty's Government, and it is with regret, therefore, that they feel compelled to express a grave doubt whether the fiscal policy the principle of which was adopted by the majority of the Conference as a means of securing this object is really calculated to promote it.

A.-2, 1895 No. 16.