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PUBLIC RECORD OFFICE
Reference :-
TTC.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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Secretary of State for the Colonies. This seems to me to meet the situation, to delete the words “and that the United Kingdom should grant preferential "treatment to the products and manufactures of the Colonies, either by exemption from or reduction of duties now or hereafter impose:1, and to insert in lieu thereof:
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4. The Prime Ministers of the Colonies respectfully urge on His Majesty's Government the expediency of granting in the United Kingdom preferential treatment to the products and manufactures of the Colonies, either by exomption from or reduction of duties now or hereafter imposed.'
The whole thing in my opinion rests upon the first paragraph as to whether we are prepared to advance in the direction of free trade with the Mother Country. Speaking, as I believe with a due sense of responsibility, and after careful consideration, I think that the people within the Empire and in the Dominions beyond the Seas are closer now than they were five years ago, and that by the resolution now proposed, even with the amendment, we are practically no nearer at all. And it seems to me that there are difficulties in the way, because the Prime Ministers present, or some at all events, fear that there may be a conflict brought about with the respectivo parties in the several Dominions that they now represent. I take it myself, that there is one cause for anxiety, viz.--the industries within the Colonies, and all those employed in those industries, and those whose capital is also invested, and that if we were to pronounce in favour of free trade with the Mother Country the vested interests would be to some extent imperilled, and on that ground there is hesitancy in declaring that free trade with the Mother Country is essential, or at least would be promoting the resources and industries of the Empire. For my own part I do not think in the face of what has transpired in my own Colony and of the resolution that was passed by the Trades and Labour Council Conference, in which they expressed a desire for a preference to be given to the Mother Country. I do not think, myself, that the industries or the men employed in the industries in the Colonies need fear the competition of the men or manu- facturers in the Mother Country. I am of that opinion; therefore, I adhere to what we did at last necting of this Conferenco.
Then in respect of the second paragraph it is quite clear that, owing to the financial position of the Colonies and the tariffs which have been imposed for revenue purposes, we cannot at present under existing conditions adopt Free Trade. I think it is clear, whether we may say so or refrain from saying so, that it is really the finances of the respective Colonies of the Dominions beyond the Seas which put them far away from Free Trade, supposing it was the question at issue.
Then, with regard to the next question in paragraph 3 as to promoting the increase of its trade with the Empire, there can be no doubt that substantial preferential treatment would be beneficial. I take it myself that there is no difference of opinion about paragraph 3 practically. There is in paragraph 3 a resolution of the Secretary for the Colonies and then if you take away the first paragraph of the Secretary's draft resolution we come back to the original motion which I gave notice of, which is to the following effect:--
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"That it is essential to the well-being of the Mother Country and of His Majesty's Dominions beyond the Seas that in such Dominions where the same does not now exist, preferential tariffs, by way of rebate, on British manufactured goods carried in British- owned ships should be granted."
It is only clothing it in other language, and we come back practically to the original resolution. I previously stated that I was willing to strike out the words of my original motion. which were as follows:-
“And that in the Mother Country a rebate of duty on Colonial products now taxable should be conceded."
It did so because I felt that to press, that part of the resolution would bring opposition. The Prime Minister of the Commonwealth of Australia has stated that he himself did not favour asking anything in return. The
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Prime Minister of Natal holds precisely the same opinion, and what we should do is to pass a resolution stating that we believed in improving, the trade relationships between the Mother Country and the Dominions beyond the Seas, and that we thought a means of accomplishing that object would be the giving of a substantial preferential tariff. I, therefore, myself, am uot in favour of the amendment as it stands. I prefer the original resolution of the Secretary of State without the last paragraph, to which I understand exception is mostly taken-
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That the Prime Ministers present at this Conference pledge “themselves to ask their several Parliaments to affirm the principle "of this resolution and that they take the earliest possible steps 10
give effect to it."
I understood myself if that was taken away that practically the resolution would be almost unanimous.
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Sir EDMUND BARTON: What form do you propose to put it in?
Mr. SEDDON: Are you alluding to my original resolution.
Sir EDMUND BARTON: Your present suggestion.
Mr. SEDDON: Take away the conclusion "That the Prime Ministers present at the Conference pledge themselves to ask their several Parliaments to affirm the principle of this resolution, and that they take the earliest possible steps to give effect to it." I wish to explain to the Conference why I think it should be deleted. If retained it means that you bring about a conflict between protectionists and free traders at once; you bring the party element into play which would be avoided if that was not passed and it is with a view to avoiding conflict that the protectionist party and the free trado party in their respective Parliaments of our Dominions beyond the Seas. If you pass this, owing to your having passed the first paragraph, they would allege that you had declared for Free Trade, and upon that principle hostility would arise. It is to prevent hostility that I recommend!
the elimination of the last clause, and I am still of opinion that by the declaration supplementing as it does without withdrawing from what we did last time, by passing the motion of which I give notice, striking out the last paragraph and allowing what was done at the last Conference to stand, there will be no conflict.
If you propose to go further, you provoke conflict which I think you would be wise to avoid. If we could possibly have unanimity in our conclusions it would strengthen the position, and, with regard to Canada, knowing what has been there stated by statesmen who are not present and the resolutions that have boon passed in which they have asked for reciprocity from the Mother Country, and after the amend. ment which has now been agreed upon, the question is whether, having gone that length, there is any necessity to press it, and whether we may not take the suggestion for granted, having regard to the way that we have been met by the representatives of the Imperial Govern- ment in Conference-I think the suggestion is really unnecessary, and and that there is not the difference or divergence of view upon the situation at present that prevents us coming to a unanimous conclusion. I should, therefore, in the face of what I have now said, with this modification that I have suggested, be prepared to support the motion originally moved by myself that was to eliminate the last paragraph of the Secretary of State's motion. On the question whether you make it Free Trade or closer trade, the word " closer" I believe would probably avoid the conflict that there may be if you use the words Free Trado," but really as before, the motion as it now stands, taking away the last paragraph of the Secretary of State's resolution there is not rouch difference.
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The SECRETARY OF STATE: I do not think there is a great deal of difference of opinion, and as I understand Mr. Seddon, he would take the
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