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PUBLIC RECORD OFFICE
Reference :-
TLC.O. 885
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PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
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to the Colonies. This, I think, has been found now to be impracticable, and it is no longer entertained, because it would involve a departure from the Under such circumstances, the well-known fiscal policy of Great Britain. Government of Canada have come to the conclusion that the best way, the only way, in which the thing could be done was to give a preference to British goods without asking any compensation; and it seems to me, as far as I have seen the expression of this Board, that this can be done in all the Colonies which are situated as Canada is, that is to say, where they levy their revenue by a customs tariff, which is the case with mostly all the Colonies with the exception of one or two, that is to say, Natal, which has such a low tariff that it can be taken as a free trade tariff, and still more so New South Wales. The question is asked, what benefit is there to accrue from that? Well, there is the question of sentiment first, which is a large one; then there is always this other consideration, that whenever you give an advantage to the motherland her trade is so enormous that the Colonies must have some indirect benefit from it also. But, taking the question of sentiment alone, if all the Colonies of Great Britain at the present time were to do what Canada has done, that is to say, to give a preference to British goods, there would enormous moral effect throughout the world, there would be an enormous moral effect in Great Britain herself; and if that be the view I would go further than anyone has gone up to the present time, and I would move something in this way that, with the view of strengthening the bonds of the Empire and of developing trade within it, it is advisable, so far as practicable under local circumstances, that in all the Colonies which levy their revenue by Customs tariffs a preference should be given to the products of the motherland. That is practically embodying what has been the senti ment of this Board. Take the Colony of my friend, Sir George Turner, Victoria, which I understand is a highly protective Colony, they have a very high tariff, that is to say: You give a preference to the products of the "What is to become of the motherland. Well, I know my friend may say, manufactures which we have created under that tariff?" I know that it is very difficult, whenever a protective tariff has been established, to discuss it in any way.
We have seen some of the difficulties of that ourselves, and in your case the difficulty might be overcome, just as Sir George Turner him- self indicated, though I do not exactly favour the idea of raising the tariff against foreign goods.
be an
Sir George Turner.] You have practically done that in Canada.
Sir Wilfrid Laurier.] We did it in one instance, cotton. For instance, the capital invested in cotton was so large, so enormous, that we thought seriously of interfering with it, and therefore in one or two lines of cotton we raised the tariff so as to give a preference to British over American cotton. The thing can be done in this way.
Mr. Reid.] That resolution leaves us quite open to do it in any way; does not bind to that particular method.
it
Sir Wilfrid Laurier.] No, but I would go further. I think, if possible, that all the Colonies should agree to consider favourably the advisability of giving a preference to British goods.
I will go further than saying merely that I would favourably consider the proposal, of course I do not pledge the Colony; I only pledge my own influence with my own Parliament, and that I should certainly do.
Sir E. N. C. Braddon.] This resolution.
The Secretary of State.] Would you listen to the resolution which Sir Wilfred Laurier has proposed. think it better than mine.
Sir Wilfrid Laurier.] This is the way it reads as a suggestion to be amended, torn to pieces, as may be advisable: "That with the view of strengthening the bonds of the Empire and of developing trade within it, it is advisable that, so far as practicable under local circumstances, in all the Colonies which levy their revenue by a customs tariff, a preference should be given to the products of the motherland.”
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Sir George Turner.] That is without saying anything about the motherland, doing anything by way of preference to the Colonies without reference to the quid pro quo.
Mr. Reid.] That is only a question between Great Britain and foreign nations, not a question between Great Britain and her Colonies at all. We are dealing in this resolution with no local productions in any sense at all, but we have Great Britain outside our ports, we have foreign nations outside our ports, and all that we are asked to do is as between Great Britain and those foreign nations with their products outside our ports to give a preference in whatever form you like to Great Britain as against foreign nations.
Sir George Turner.] Yes, Mr. Reid.
Mr. Reid.] Now the quid pro quo you have got for that, putting sentiment aside, is that Great Britain is your largest customer for all that you have got. She is the country that lends you all the money that was necessary to pioneer the Colony.
Sir George Turner.] They do not lend it us for sentiment, you know. Mr. Reid.] Still, it is a tie, and we would look very blue if the London Stock Exchange some fine morning refused to renew our loans.
Sir George Turner.] That will not come in our time.
Mr. Reid.] I do not think it is likely, but those are all ties of business and we have no such business ties with foreign nations, none whatever. Great Britain is our best customer. It is a customer that opens her ports and her gates to all our products. The other nations do not.
Sir George Turner.] And to the products of everybody else as well.
Mr. Reid.] Exactly; but, as a matter of fact, you are only asked as to your imports to differentiate between the nation that does that for you, and the nations that do not. You surely do not say that France is treating us and Germany, and the United States are treating us precisely as England is treating us. Surely you do not wish to say that. Let England put a tariff' on her goods, such as prevails in any other country in the world, and what becomes of Australia ?
Sir John Forrest.] What are you prepared to do yourself, then?
Mr. Reid.] I am prepared to sacrifice my broad principle as to the half- dozen lines I have got on my tariff. As to these half-dozen lines, I am quite prepared to do something to fall in with the general movement in that direction. I am prepared even as to the few things on my tariff.
Sir John Forrest.] You agree to give preference.
Mr. Reid.] I distinguish between the foreign and the British whisky, for
instance.
Sir George Turner.] What are those few items?
Mr. Reid.] Wines.
Sir George Turner.] England supplies wines, but they are all foreign.
Mr. Reid.] Well, whisky. You make brandy.
The Secretary of State.] We make spirits; yes.
Mr. Reid.] That is our largest source of revenue in our Colony.
Mr. Seddon.] Might suggest I would like myself, if we could get a resolution drafted on lines upon which we would be unanimous, and this has come upon us suddenly, and I would propose that this should be deferred
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