A.—6

I may say in that respect that Mr. Robb, in addressing the West Indian Board when they conferred in Canada, stated very kindly that they had no objections at all to Newfoundland participating, and no desire to have any preferential tariff that would exclude Newfoundland. I am very hopeful that they may have similar views in connection with Newfoundland paper going into Australia and competing with Canadian paper which now enjoys a preference of, I think, 15 dollars a ton. Trade with Great Britain improving. J Our import trade with .Great Britain, dislocatedby the Great War, is steadily improving. Despite the zeal with which the American producers study the wishes of consumers, and the greater attention they pay to style than do manufacturers in this country, the proportions of the trade with Great Britain and the United States are constantly changing to the advantage of Great Britain, and in a comparatively brief time may approach the position in pre-war days. Motor-cars and Films. Very few motor-cars are imported from Great Britain ; many from Canada and the United States. Power, style, and price are the reasons. If this country wishes this trade she must make more powerful cars, suited to conditions such as Australia and New Zealand ask for. I agree fully with all that has been said about the importance of the film trade, but I would point out that until Empire films of quality as good and price as cheap as the films made in the United States are procurable (which I believe is not now the case) little can be done to increase the Empire trade, by any quota device or otherwise. In the matter of films, motor-cars, and all other exports, much depends not only upon quality and price, but on selling methods, and in all these respects British methods can be improved, and the improvement therein will go far to restore the Empire trade to which the sentiment of our people powerfully impels them. The enormous home markets of the United States' producers enable them to dump manufactured goods of particular kinds upon our market at prices below cost of production and greatly to the disadvantage of local and other Empire producers. This matter of dumping is exceedingly troublesome, and is receiving close consideration. STATEMENT BY MR. CHADWICK ON BEHALF OF THE INDIAN DELEGATION. Mr. Ghadwick: Prime Minister, Mr. Bruce and Mr. Coates have drawn attention to the deeper purposes behind our discussions here on inter-Imperial trade. The same idea was stressed by the Maharaja of Burdwan in his opening speech when he said that we in India were very anxious to see a development of trade between India and every part of the Empire, because thereby we look forward to a development in mutual knowledge and mutual understanding, two features which are of the first importance to political development in India. Survey of Indian Trade. Therefore, Sir, I will leave that side of this question entirely alone and come directly to a brief survey of our trade and the economic position at the moment in India as we see it. Last year our total trade in merchandise exceeded £470,000,000 or with treasure £500,000,000 sterling. With a trade of these dimensions it was impossible in the last few years to have escaped the dislocations which have happened in every other country but I am not overdrawing the picture, or trying to make too rosy a picture, if I say that the feeling now is one generally of chastened hopefulness. Assistance to Coal, Steel, and Textile Industries. Each one of the trades and industries in India has gone through a difficult period. Ido not suggest that that period has been anything like what it has been in this country in intensity or complexity, but just to mention the words coal, steel, and textiles, three industries which have forced their notice upon the attention of the Government of India almost constantly during the last three years, is to mention words which are very familiar here. All these three industries have applied to the Government for fiscal assistance. The application on the part of the coal industry was turned down, a small Bill to help forward the better organization of the coal trade being alone enacted. The application from the textile industry is under inquiry at the present moment. For the steel industry a discriminating protection has been given under the principles explained here some three years ago. Ido not wish to enter on controversial fiscal matters, but Ido want to take this opportunity of acknowledging the very friendly and understanding attitude of the National Federation of Steelmanufacturers in Great Britain to this change in our economic policy. This attitude was much appreciated in India, and I think even more important was the line taken by the big textile associations last year when the cotton excise duty was removed. The attitude adopted, especially by the Cotton Textile Associations, has gone a long way towards obliterating many of the rather bitter memories which in India were associated with old controversies with regard to that duty and has helped to promote a better feeling which in itself is an asset to trade. Expenditure on Productive Works. Perhaps it is unnecessary to say that the State credit has improved greatly, so much so that at last we are able to devote considerable sums of money once more to capital productive works. The irrigation schemes that are now actually in progress of construction are likely to bring new land

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