PUBLIC RECORD OFFICE
Reference :-
C.O. 885
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PUBLIC RECORD OFFICE, LONDON
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Laurier and the Canadian Ministers, and they should discuss the matter with the President of the Board of Agriculture, who will be glad to make an appointment to receive them for the purpose. If that is so, perhaps we shall be able to release Mr. Hanbury. Mr. Hanbury, perhaps you will arrange with Sir William Mulock as you can, and perhaps he will fix a date.
ARMY AND NAVY SUPPLY CONTRACTS.
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The SECRETARY OF STATE: Then the Secretary of State for War is with us, but he has to leave in order to keep an appointment with the War Office Council, and therefore I propose to take the question of the Army and Navy contracts, which is brought forward at the instance of the Common- wealth of Australia.
Sir EDMUND BARTON: Mr. Chamberlain, I have a resolution to propose in reference to the question of Army and Navy Supply Contracts. I have no doubt that this question has been the subject of correspondence for some time between other self-governing Colonies and the War Office through the Colonial Department. And there has been a long correspondence with the Commonwealth commencing with the statement by cable:
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"A feeling prevails in the Commonwealth that Australian producers and merchants have not received adequate consideration in connection with letting of contracts for supplies for the use of the Army in South Africa. It is suggested that more consideration be "given to offers of Australian produce when made direct by Australian "houses, as against offers made by firms in South Africa and elsewhere "of goods which may be Australian, but which it is open to them to "furnish from South America or other countries. Attention is directed to the enormous profits reported to have been made by South Africa Cold Storage Company during past year. Consider substantial saving "would be effected if War Office authorities were in direct relation with "Australian firms."
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That was followed by considerable further correspondence, which it may be necessary to refer to presently, but which it would be only encumbering the matter to quote now. The point of the matter seems to have been this, and it was desired that in futuro contracts fuller and more explicit information should be given beforehand, in order to enable Colonial producers to have an opportunity of tendering on the best terms possible for them to offer. On tho occasion which has become the subject of question, the trouble that most affected Colonial producers was this: papere came out, enabling them to tender in the alternative, whether for delivery in harbours, or in store ships, or for delivery on the spot, practically on the field of action. As theso tenders were in the alternative, tho Australian tenderers chose the former of these alternatives, not knowing, as was the fact, that there was preference for the latter alternative. There has been no suggestion that anything indirect was done in the matter. The offect, however, was this, that from want of some fuller information, which might possibly have been published at the time at home, those who tendered did not know that in tendering for one form of supplies they wore offering that which was foredoomed to be fruitless, and they felt, of course, correspondingly disappointed. That was the subject of correspondence, and a reason was given-I forget what the reason was-but it was shown clearly, I think, that there was nothing done which could by any possibility be intended to militate against the interest of the Colonial producers, but nevertheless, in that case the damage had been done. This was the case of the well-known contract which was entered into by Messrs. Bergl & Co. on behalf of a combination, including some Australian producers. But this was a contract, or a tender, rather, for delivery wherever the troops might need the meat, no doubt the best form in which the Office could have had it. But on our pointing out that in a contract of this kind there was uo security that any preference would be given to Colonial producers, a
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note was very promptly obtained from Mr. Bergl, undertaking that so far as was practicable the supplies would be obtained from Colonial sources. Unfortunately, it appears, that did not come to pass, because, if our informa- tion is correct, the first cargo, and perhaps others afterwards, were from tho Argentine Republic, which is outside the Empire. Now, the object of the resolution is to ascertain whether we can lay it down that the products of the Empire shali, so far as practicable, bo preferred to the products of foreign countries: that that should be laid down as a principle, and that all tenderors for such contracts should be informed in each of the Colonies in explicit terms of the full needs according to circumstances. And that there should be this further advantage, that because of the means of distribution and the knowledge which the Governments have in Australia, and to which they pay cousiderable attention, notice of all tenders called for such contracts shall be communicated not only to the Press but also to the several Colonial Governments through official channels. The resolution is very widely drawn so as to comprehend all the Colonial interests concerned, and not in any way to attempt to prefer any one Colony over another, but its object is to lay down the principle and to sco that so far as possible notice shall be suffi- ciently and explicitly communicated through the Government as well as through the Press. I do not expect, of course, that a proposal of this kind will
escape without comment and criticism, but at the same time I think it does lay down a reasonable principle and a reasonable means for carrying the principle into effect. I move the resolution :--
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"That the Premiers of the self-governing Colonies suggest that in "all Army and Navy Supply Contracts, products of the Empire be preferred to the products of foreign countries as far as practicable, "and that tenders for all such contracts should be invited in the Colonies "in explicit terms, and after full notice according to circumstancos. They further suggest that notice of all tenders called for such contracts should be communicated not only to the public through the Press but "also to the soveral Colonial Governments through official channels." Mr. SEDDON: I notice that the correspondence from the New Zealand Government on this question has not been included in the paper. That correspondence would have thrown some further light upon the question, but generally on this question we go upon the same lines as Australia, and there is no doubt there was only allowed six days for contractors or tenderers to get their tenders in from New Zealand, and the condition laid down in the specification was that the tenders must be in accordance with the specification and be lodged in the War Office, London, at a given date, and as from the time when they got the specification to the time that tenders were to be lodged in London was only six days, to tender in accordance with specification was a moral impossibility. What I think should obtain should be that ample and proper time should have been given, so that the Colonial tenderers might have had the opportunity of putting in their offers on the same terms as those who are at home. It does not follow, as is contemplated by the War Office, that the tenderers have their offices in London or could tender in London; it will require to be done direct from the Colonies.
Then we come to the question really at issue, and that is this. It is quito'
It is possible that you might get tenders at less prices from other nations. possible that you may get from the Argentine tenders lower than you can get from either Australia or New Zealand. There are two thinge, at all events, as against tenders being accepted upon that ground solely. One of them, and material, is that if you do give a little more to your Colonies you get an advantage in return indirectly and directly, because you are helping to develop the country which is your own, and you are strengthening the people that will help you in any emergency that may arise. And then in addition to that there can be no doubt that you get better quality. I think that all round we have had that demonstrated here in London in respect to the beef from the Argentine, and the Australian and New Zealand beef, the Australian mutton and New Zealand mutton, and also mutton from tho Argentine. That being the case, I contend that it would be an advantage for His Majesty's Government to give this matter greater consideration in the future than it has had.
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