PUBLIC RECORD OFFICE

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C.O. 885

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PUBLIC RECORD OFFICE, LONDON

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sure the Government of Canada must have taken into their serious con- sideration. What return has been made to them by the foreigner for the The exports advantage which the foreigner has derived from their tariff? from Canada to foreigners have decreased 40 per cent., while the exports from foreigners to Canada have, as I have said, largely increased. Of the other hand, in spite of the tariff, in spite of everything in the natural.course of trade and communication, the exports to the United Kingdom have increased 85 per cent. in 15 years, and the net result, which I desire to impress upon you, is that in spite of the preference which Canada has given us, their tariff has pressed, and still presses, with the greatest severity, upon its best customer, and has favoured the foreigner who is constantly doing his best to shut out her goods.

Now what is the present position? I believe it is true of Canada, it is true, I believe, of every Colony, we take already, by far, the largest proportion of Colonial exports, but there is not the least doubt that we might double or treble the amount that we take, but we cannot do so until we have the reciprocal advantage, and until you take in exchange a larger proportion of our goods, and so enable us to pay for the imports which we should receive from you. And I think the very valuable experience, somewhat disappointing and discouraging as I have already pointed out, but the very valuable experience which we have derived from the history of the Canadian tariff, shows that while we may most readily and most gratefully accept from you any preference which you may be willing voluntarily to accord to us, we cannot bargain with you for it; we cannot pay for it unless you go much further and enable us to enter your home market on terms of greater equality. I am making that statement as a general statement, but I am well aware that the conditions of the Colonics vary immensely, and that a good deal of what I have said does not apply to the Colony of the Cape or the Colony of Natal. But so long as a preferential tariff, even a munificent preference. is still sufficiently protective to exclude us altogether, or nearly so, from your markets, it is no satisfaction to us that you have imposed even greater disability upon the same goods if they come from foreign markets, especially if the articles in which the foreigners are interested come in under more favourable conditions.

Now I have said that Now Zealand has made three proposals for our consideration. As regards the other points they involve a great deal of detail, and therefore I should wish to reserve any observations which I may have to make upon them, except to call special attention to the proposals of New Zealand, that we should consider the question of communications between the Clonies and the mother country. I think at the present time that is a question of supreme importance. The bounties which other countries are lavishly giving to their shipping constitutes a real danger to inter-imperial trado; these bounties constitute an unfair competition. It has been said sometimes that the trade follows the flag, and that has been disputed. I am afraid it does not do so necessarily and certainly as we should desire, but trade does follow the shipping, and if by any cause and by any fault of ours the shipping transport between the Colonies and ourselves is allowed to get into foreign hands I can only say that, in my opinion, I think it will reduce materially the interchange of goods between ourselves and the Colonies, and from every point of view, therefore, I regard it as most important that the Conference should give special attention to this proposal of New Zealand.

Gentlemen, I think I have said all, perhaps, even more, than 1 need to In conclusion, would add that I bave said in opening this Conference. cannot conceal from myself that very great anticipations have been formed as to the results which may accrus from our meeting. Possibly those anticipa tions are too sanguine; possibly they have been formed by persons who are insufficiently acquainted with our difficulties, and do not make allowances for the obstacles in our way. The questions have, I think, occupied greater attention in this country than they have, perhaps, at present in the Colonies, which have been taken up with matters of more exclusively domestic concern, But, here, no doubt, there is a readiness, and I would say an anxiety, to see these important questions dealt with, and dealt with in a fashion which will bring us more closely together. We, in the United Kingdom, for centuries past have been holding our house like a strong man

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armed against all our enemies. We have felt throughout all the period the burdens as well as the privileges and advantages of empire. We see now that all other nations are also arming to the teeth, I want you to consider for a moment what is the present position of the smaller nations with whom in population you may more closely compare yourselves. What is the position of such nations in Europe as Greece, the Balkan States, or Holland, or the South American Republics? Why, gentlemen, they are apso- lutely independent nations, accordingly they have to bear burdens for their military or naval defences, or for both, as the case may be, to which yours bears no proportion whatever, I point out to you, therefore, that in the clash of nations you have hitherto derived great advantage, even from a purely material standpoint, from being a part of a great Empire. But the privileges which we enjoy involve corresponding obligations. The responsibilities must be reciprocal and must be shared in common, and I do not think that any empire may be said to

be on a sure foundation which is not based upon recognised community of sacritices. Gentlemen, I have perhaps, in some of my remarks, gono a little beyond my province, but I rely upon your kindness to excuse it. I thought it desirable in opening this Conference that some observations of a general character should be put before you, in order that you might see, as it were, into the minds of the Imperial Governmont. I do not know how far will be prepared to proceed to-day with our deliberations. I imagine, at all events, you will reserve all discussion in detail to a subsequent period, and I shall be much obliged, if that is the case, if you would arrange with me what dates and what hours would be most convenient to you for our meetings, and any other matters connected with the conduct of the Conference which you would desire to bring forward.

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Sir WILFRID LAURIER: Mr. Chamberlain, I think I am expressing the views and the sentiments of those who are here assembled in taking this opportunity at once of testifying to you our appreciation of the frank and open manner in which you have opened this Conference, and of tho manner in which you have approached subjects which ought to be dealt with while we are here in England. I think it is better that we should follow this example, so that everyone while expressing his views should do so with that entire frectlom of thought and speech which everywhere characterises British institutions. The questions which you have brought to our attention are of the greatest importance. It would not be within the bounds of human nature to expect that all those who are horo assembled would approach them from the same standpoint. The differences in geography, the differences in wealth, the differences, if I may say so, in different stages of civilisation, compel us, I believe, at all events compol ine as far as I am concerned, to take views upon many of the subjects to which you have referred which perhaps in the end may be a little at variance with those which you have yourselfexpressed. But whilst I say this, at the same time I express my sincere conviction that this Conference must do a great deal of good, even although no more results are obtained and reached under it than those which were reached at a previous Conference, which, though they did not amount to much in the way of concrete results, effected a great deal in opening the space for future development of the ideas which were there ex- pressed. I believe that it is also the intention of those here present that we should abide by your suggestion not to proceed any further this morning with the discussion, but to arrange for future dates for meeting. In the meantime let me say to you, Sir, that we are all at one with you in the very noble words in which you spoke of the present condition of His Majesty the King. We have already expressed our views upon this subject, and placed them in your hands, but if it turns out that in the eternal decrees of Providence or by the will of God the King should be speedily restored to be crowned, perhaps we may all come to the conclusion that what we thought to be a calamity and a gloom may turn out to have been for the greatest good.

Sir EDMUND BARTON: Mr. Chamberlain, I quite agree in the sugges- tion you have made, that any longthened discussion upon the address which you have been good enough to deliver to us should be the subject of further

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