PUBLIC RECORD OFFICE
Reference :-
C.O. 885
PUBLIC RECORD OFFICE, LONDON
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anticipates what would be the policy of the United States, but still they would have no ground at all for objection if, within the British Empire, we made a mutual trade arrangement. That is a thing that is conceded by all nations, that within an Empire wo are entitled to try to develop. ourselves. The Americans have done it, the Germans have done it, and I am pretty sure that if we were to adopt such a policy the United States would, no doubt, in their Press domur to our course, but I feel that before the eyes of the civilised world they would not have a ground- a just ground-of complaint. But now the question is, whether we can to some extent, I will not say to the whole extent, as stated in my opening remarks, that I would like to have, if we can to some exient establish some mutuality of trade between the Mother Country and the Colonics. I under- stood from Mr. Chamberlain that the results of the policy which was adopted by Canada upon this matter some years ago in at once offering a concession to Great Britain, perhaps was not a sufficient equivalent for Great Britain to modify to some extout her fiscal legislation. I would reserve the discussion of the subject to the time when my colleagues come here at a future date to endyour to show that the preference which we have given is as much as would be sufficient to warrant a reciprocity of treatment by Great Britain. But whether or not it is sufficient, the question whether it can be made more Assum- general, more complete, and more effectivo is a point to be debated.
ing it to be fair on our side of the question to make the preference which we have given more effective than it is supposed to bo at present, the question would remain then to be determined whether or not the Imperial authoritics are disposed, or that they could carry a concession mado to us. Thore would be two ways of doing it. It could be done first of all in the way of imposing new dutics to make concessions, and I grant that would be the most difficult thing to do. As to that 1 would rather hear an opinion than venture to express an opinion myself, but upon the lines of existing duties I put the question whether it would not be possible that the Colonies should be given a proference. You have the wine duties, and, if I remember right, the wine duties when Mr. Cobdon was negotiating a treaty with France-afforded a basis for the negotiation of that treaty.
(Mr. Seddon showed Sir Wilfrid Laurier a document.)
Sir WILFRID LAURIER: You have thought of the same thing.
Mr SEDDON: These are the products upon which duties' are now levied.
Sir WILFRID LAURIER: I see you desire that the wines of your country might be given a preference here? Wheh Mr. Cobden negotiated the treaty with France, the wine duties constituted a basis for the negotiation of that treaty, and by a reduction of the wine duties to France, Great Britain was enabled to have a valuable market for certain commodities in the French market. Now you have imposol grain duties. I know it is a delicate subject, but I do not see from what point of view the policy could be objected to if a preference were to be given to the Colonies upon the grain duties. First of all, the consumer could not object, because it would be to some extent reducing what little burden there is against him, if there is any-there is always some-in the matter of the Customs tariff, and it would be reducing that burden; gradually reducing it, if I may say so, on a sliding scale, because the Colonies would be thereby enabled to furnish moro and more of the grain consumed as necessity dictated and the condition of Great Britain required. In Canada I know the wheat fields are all the time increasing, and i have no doubt that by-and-bye she will not only be able to supply the markets of Groat Britain, but also the markets of the United States, because. I look upon it in the near future that the United States will not be the exporters of wheat, but rather importors; so that by putting the thing in a concrete form, 1 would like, and I think I would take tho sentiment of those present, to know if it be possible, if we can hope or
expect that the Imperiai authorities would be in a cliscussion of that view.
position to enter into a
The SECRETARY OF STATE: I tako that to be a question addressød to me as Chairman of the Conference. I would say, therefore, that it was distinctly understood from the first that we should not object to any discussion, even if it included an alteration of our presont fiscal system. We do not, of course, express an opinion beforehand, but the disenssion certainly is not barred. What we undoubtedly desire-what I believe would be infinitely to the advantage of the whole Empire--is Free Trade within the limits of the Empiro. We recognise all the difficulties which you have put forward, and we are well aware absolute Free Trado within the Empire is not practicable at the present moment. The objection would not come from us; the objection would come from the Colonius. We should be prepared, in the words of the Chancellor of the Exchequer in a recent specch which he made in the House of Commons, if we could secure Free Trade within the Empire, to make sacrifices or changes, whichever you may call them, in our system in order to obtain that result. But that is practically out of the question at present.
Then the question is, Can we make any approach to it, and 1 attach the greatest importance to what we do. It is not with me, primarily, a question of money sacrifice; it is primarily a question of the unity of the Empire, and I am firmly convinced that unity cannot be effectually secured in the future unless we can improve and extend our inter-commercial relations, and therefore, I am not looking at the matter as a mere question of accurato balance sheets, so much on one side and so much on the other, so much sacrifice to be mot by an exactly parallel sacrifice on the other side. I should regard the object as of so much importance that we need not look too closely into the exact benefits we have obtained. In order to secure somo advance towards Free Trade within the Empire there are two ways, both of which have been raised or suggested. In the first placo, a fixed preference given on oither or both sides upon all the taxable goods. The other suggestion fell from Mr. Seddon, and it was to seo whether we could not make a Free Trade list, instead of giving a general preference upon every articlo, by tosting the tariffs and trying to find a number of articles at prosent dutiable which might be made free. In either case, I do not press the one or the other, in either of those two ways we should be making an advance towards Free Trade, and I think that if a substantial advance could be made in that direction the Mother Country ought to be prepared to do something in return.
I am speaking of my own private and personal conviction on the subject. What can the Mother Country do? She can, of course, allow a rebate on such articles as are already taxable in her tariff; she cannot, I repudiato at once, the possibility of so far altering our system as to be imposing new duties in order to take them off-a question of that kind involving so very largo a change could, I think, only be considered by us if the whole question of the. Zollverein, including Imperial Free Trade were under discussion and, that having been put aside, it remaius only to consider whether we could allow any rebate in the case of thoso articles which are taxable. I think that is a matter which is worthy of discussion; which can be treated upon its merits. Of course we have to present a proposal of that kind to our Parliament; wo should have to show very clearly what was the corresponding offer made on the part of the Colonies.
But there are other ways which have not been mentioned, and to which I think the attention of the Conference should be directed. Ono is, undoubtedly, the question of subsidies.
Besides the question of a direct preference, which might under certain circumstances be given on goods already taxable by the Mother Country to the Colonies, there are other forms of preference, indirect forms of pre- ference which should also be considered, and one is, the matter of subsidies-- subsidies to shipping. Undoubtedly where a line of steamers is established between the Mother Country and the Colonies the trade does follow the steamers, and I have found that the trade is diverted where a line of steamers is established in competition between foreign, countries and the Colonies, and especially where, as is often the case, the foreign line has largo G 2
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