29

A.—6

its European imports. It is also true' that political unrest in China has diverted much wealth and capital to the neighbouring British oolony, in which thes merchants anel well-to-do classes erf Chinese have implicit confidence. Fiji. Fiji has suffered from the loss of the Australian market for its principal export products -namely, sugar anel fruit. But, thanks to New Zealand, which now takes the bulk of the sugar crop, these islands, which are of great importance, to our Imperial position in the Pacific, have passed the worst. I have recently learned with interest that there is an expectation of important new developments in trades and shipping communications between Canada and Fiji, which cannot but bes of mutual benefit to both. The demand for labour in Fiji exceeds this present supply, but this impetus erf the new Canadian trade may attract both capital and labour to the South Pacific group. Falkland Islands and Antarctic. It may interest the Conference to know that the late Captain Scertt's Antarctic ship, the' " Discovery,", has beeir purchased on behalf erf the Government of the Falkland Islands for employment mainly in research into whaling in the dependencies of the colony, whiesh include South Georgia, the South Shetlanels and Graham Land, the South Orkneys, and the South Sandwich Islands. In these dependencies the Empire possesses a whaling-field which in recent years has been more proeluctive than all the rest of the world combined. Existing scientific knowledge of the, numbers and habits erf the whales is inadequate ; and we are anxious to devise a system of control of the industry whiesh will prevent the practical extermination which has taken place in other whaling-areas. The expedition will also afford opportunities for adding to scientific knowleelge in many othesr directions. Evidence that the investigations are also of interest ter the Dominions is afforded by thes opinion expressed by the Government of the Union of South Africa that the eslferrts which are contemplated in regard to the study of whaling oil South Africa will gain immensely from the operations of the " Discovery." Middle East. This concludes what I have to say to-day about the colonies anil protectorates, but my survey would be; incomplete without serine special reference to developments in the Middle East. The supervision of this area, which includes lrae| and Palestine, was assumed by the Colonial Office in the spring erf 1921. In the statement made ter thes Conference by Mr. Churchill in 1921 a general outlines was given of the Middle Eastern policy of the late Government, which was directed towards reducing expenditure both in Iraq and Palestine. This policy has been steadily pursued both by the late Government anel. the present Government, and the result is that the total expenditure, this year on these two countries falling on the British Exchequer is estimated at £8,548,000, as against the actual expenditure of £26,695,364 for the year 1921- 22. Iraq. To take Iraq first: On the 23rd June, 1921, the day after Mr. Churchill made his statement, the Emir Feisal, third son of the King erf the Hojaz, arrived at Basrah as a candidate for the throne erf I rag. He was well receiveel by the people, anel. on the 11th July the Council erf State passed a unanimous resolution eleclaring him King of the country, provided that his Government should be a constitutional, representative, and democratic Government, limited by law. Sir Percy Cox, who was then High Commissioner, took steps to obtain a confirmation of this resolutiem by means of a reforenelum, of which the results were known on the 19th August. In an electorate of about one million the Votes for King Feisal represented a proportion of 96 per cent., and he was accordingly recognized as King of Iraej by His Majesty's Government. The next step was to place our relations with him on a proper footing. Our position as mandatory was regulated by the terms of the draft mandate (though that document had not then, and has not yet, been formally approved by the League of Nations) ; but it was felt that a stage had been reached, with the establishment erf constitutional monarchy in Iraq, when some more appropriate instrument was required as between ourselves and the mandated State. Accordingly a, communication was made in November, 1921, to the Council of the League of Nations, informing them that the British Government had been led by political developments in Iraq to the conclusion that their obligations vis-a-vis the League could be most effectively discharged if the principles on which they rested were embodied in a treaty to be concluded between His Britannic Majesty and the King of Iraq. This treaty would serve merely to regulate the relations between the mandatory and the Iraq Government, and was not intended as a substitute for the mandate, which, woulel remain the operative document defining the obligations incurred by His Majesty's Government towards the; League of Nations, Negotiations with King Feisal wesre opened at the same time. After somewhat lengthy discussions a treaty of alliance was eventually signed on the 10th October, 1922. You will notes the date, which was just before Mr. Lloyel George's Government went out of office. The treaty provided for the conclusion of a number of subsidiary agreements in which the precise degree of obligation undertaken by His Majesty's Government was to be defined. It was originally to remain in force for twenty years, but the; present (fovernment, after a most careful review erf the; whole question of policy in Iraq, arrived at the conclusion that this period was toer long. On the 30th April, 1923, a protocol was signeel at Baghelad, provieling that the treaty should terminate upon lra<| becoming a member of the League erf Nations, and in any case not later than four years from the