PUBLIC RECORD OFFICE
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C.O.885
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18 PUBLIC RECORD OFFICE, LONDON
Fourteenth Day.
9 May 1907.
IMPERIAL
SURTAN ON FOREIGN IMPORTS.
(Mr. Deakin.)
$6
who spend it only as they think fit for their own interest. If they do not think à project is in their own interest, they do not spend it; if they do think it is for their own interest, they spend what may be necessary upon it. They do that only when they believe the benefits to be gained will reward them for their own investment of their own fund.
Mr. WINSTON CHURCHILL: But meanwhile they would have to raise the sum of money every year by the taxation of the year, and if they did not spead it, it woulil accumulate steadily in a fund.
Mr. F. R. MOOR: Why accumulate it? You could earmark it.
to say,
Mr. DEAKIN: I have only put forward this method of arriving at an Imperial fund in a tentative and experimental way. As I thought I took care I am not wedded to this particular form of contribution. What I want to see are Imperial contributions for Imperial purposes, to be approved by each Legislature, and I take it that the fact that each Legislature had to give its approval to the expenditure of its own money is quite a suflicient guarantee that it will be expended fairly according to the judgment of those composing that Legislature." In fact, that is the way we spend all our money
now.
Mr. WINSTON CHURCHILL: Then, under your proposal, there would be no obligation for any of the'parties to the union to make any payments in pursuance of the agreements into which they have entered.
Mr. DEAKIN: The obligation on each party would be to set apart whatever sum was mutually agreed upon for Imperial purposes for a given period, or until the arrangement was altered by consent. That would be binding for the period named, but whether any or all of that fund shall be applied, to what purpose it shall be applied, and in what proportion as com- pared to the other contributors it shall be applied, would rest wholly under the control of the Legislature concerned. So that this proposition would do nothing more, if adopted, than indicate one means by which_revenue might be raised for Imperial purposes by all the Dominions, unless they chose to substitute equal subventions; I do not put it any higher than that. 1 said this or some similar proposal would give you an Imperial fund for business purposes that would be dealt with in a business-like way. When I have said that, it seems to me I have disposed of the whole of the argument of the President of the Board of Trade. He persists in assuming that I propose that these Legislatures should in some mysterious manner be moved to vote their own money for unbusiness-like proposals and in unfair propor- tions. We are to get all the benefit and the United Kingdom is to bear ali the loss of all our agreements whatever they may be. I had no such pro- position in my mind, and would not support a proposition which would work out in that fashion. It is left to each Legislature to decide how they should spend their money, and how much money they should spend. What better security can there be? Again, even if the argument had discovered a defect in the particular system of raising the money, it does not point to a defect in the principle I am concerned to maintain. is, that if we remain as we are, dependent upon individual negotiations between one or two governments concerned in occasional arrangements, we shall be in no better position after this Conference than we were before it.
This
I have submitted this in order to see if we can discover some means by which an Imperial fund may be raised for Imperial purposes, without diminishing in any way the self-governing powers of the different dominions. They are to remain just as free and independent in their financial control
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of their portious of this fund as they are now. These portions would be earmarked as the total fun would be earmarked. No one else could poach upon it. But they would have the impulse of a common Imperial movement and the control individually of a collective Imperial fund, if such can be raised, and then the responsibility first of sending their representatives to consider business propositions in a business-like way, and then of adopting, rejecting, or amending these propositions. What is there unfair or uncon- stitutional in that? May I once more say that the whole criticism of the President of the Board of Trade assumes the most unbusiness-like propositions to be considered in the most unbusiness-like way, and voted for by the several legislatures affected to their own undoing and for their own loss?
Sir WILFRID LAURIER: Lord Elgin and gentlemen, this proposition to me is not new at all. It is quite familiar. It is the old Hofineyr proposal with a new suit of clothes on, and the modification which has been intro- duced by Mr. Deakin does not alter at all the fact that this proposition has been now for some 15 years before the British Empire and has not commended itself, so far as I know, to any one of the component parts of it.
If I understand the meaning of this resolution aright, it would simply mean this-Mr. Deakin will correct me if I am wrong-and this seems to be the logical consequence of it, that it would imply that the British Govern- ment would have to pay a duty of per cent. upon their imports, and that it would be left to the other legislatures to supply the same amount if they please.
Mr. DEAKIN: No, the intention is that any member, the United Kingdom, or any other, could make an equivalent contribution.
Sir WILFRID LAURIER: Exactly, but what is to determine the equivalent contribution if it be not the contribution of the United Kingdom? Mr. DEAKIN: A calculation of 1 per cent. upon the foreign trade of each.
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Sir WILFRID LAURIER: Exactly, but it is not a calculation. This resolution is: "This Conference reconunends that in order to provide funds "for developing trade, commerce, the means of communication, and those of transport within the Empire, a duty of 1 per cent. upon all foreign imports shall be levied or an equivalent contribution made by each of its Legislatures. After consultation between their representatives in Conference "the common fund shall be devoted to co-operative projects approved by the Legislatures affected with the general purpose of fostering the industrial "forces of the Empire so as to promote its growth and unity." What is to determine this equivalent to be contributed by the different Legislatures, if it be not implied by the contribution of the 1 per cent. levied by the United Kingdom. The United Kingdom would levy 1 per cent. upon its imports which would produce so many millions-10,000,000l., 12,000,0007, or 20,000,0001.—and then the Legislatures would contribute an equivalent to that. That seems to me a very serious objection to this scheme.
I pass from this consideration and say that in its shape I do not think it could be acceptable to anybody here. But I look now to the purpose which Mr. Deakin has in view of creating a general fund. I objected the other day when the matter was brought to our attention that in Canada we would not touch our tariff at all. We have just spent considerable labour upon it, and would leave it as it is. But Mr. Deakin says: "Then contribute as you I do not see what please." There is objection to it, as I pointed out. amount we are to contribute to this matter unless we take the contribution of
per cent. by the British Treasury by means of this imposition.
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Fourteenth Day.
9 May 1907.
IMPERIAL SURTAX ON FOREIGN IMPORT.
(Mr. Deakin,)