CO885-(13-15) — Page 514

16931.

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PUBLIC RECORD OFFICE

C.O.

Reference :-

885

14 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH—NOT TO

That

you would be glad if we would furnish you with the reasons for our opinion on these points, and with any observations which we might have to offer on the arguments of the Dominion Government.

In obedience to your commands we have taken the papers into our consideration, and have the honour to

Report-

+

That we are of opinion that the Treaties with Belgium and Germany of 1862 and 1865 are binding on Her Majesty in respect of trade between these countries and Canada. As the power of making Treaties is vested in the Crown, the Treaty when concluded and ratified is obligatory upon the Crown so far as other countries, parties to the Treaty, are concerned. It may be that in order constitutionally to carry out the obligations of the Treaty, legislation is required in some portion of Her Majesty's Dominions to which the Treaty relates, but with that the Foreign Power with whom the Treaty has been made has nothing to do. In such cases the ratification of the Treaty may be delayed until the necessary legislation has been obtained, but if the Treaty has been ratified, even though such legislation has not been passed, the Crown is bound.

We are of opinion that these Treaties require that the benefits of the Reciprocal Tariff set forth in Schedule D. to the Resolution of the Dominion House of Commons must be granted to Belgium and Germany. These Treaties provide that in the Colonies the produce of Germany and of Belgium shall not be subject to any higher or other duties than those which may be imposed upon similar articles of British origin. This obligation is absolute and unqualified, and as the United Kingdom has been admitted to the benefits of that Tariff, Germany and Belgium are entitled to it also. impossible to import into these Articles of the Treaties the condition that they apply It appears to us to be only where parity of treatment is extended to Canadian goods.

On

It follows that the benefits of the Reciprocal Tariff must be extended to other countries entitled in Canada by Treaty to most-favoured-nation treatment in Tariff matters. the admission of Germany and Belgium to such benefits these other countries become also entitled to them by virtue of the most-favoured-nation clause.

The Right Hon. J. Chamberlain, M.P.,

&c.,

&c.,

&c.

We have, &c.,

RICHARD E. WEBSTER. ROBERT B. FINLAY.

No. 151.

(CANADA.)

LAW OFFICERS to COLONIAL OFFICE.

Royal Courts of Justice, August 3, 1897.

Gov.-Gen.

SIR,

We were honoured with your commands signified in Sir John Brainston's letter of the 27th May, stating with reference to his previous letter of that date respecting the Canadian Tariff proposals, that he was directed by you to transmit for our consideration the correspondence with the Governor-General on the question whether the Bill embodying these proposals should be reserved for the signification of Her Majesty's Sec. 4th pleasure.

That we should see from your telegram of the 22nd May that two questions would Gov.-Gen. arise, if we should advise that Germany and Belgium and other countries entitled to Tel. 22nd May 1897. most-favoured-nation treatment in Canada were entitled to admission to the benefits of May 1897. the Reciprocal Tariff: (1), Whether the Dominion Government had power under the Tel. 25th Resolution as now worded to cause this to be done, and to withdraw such treatment in May 1897. Gov.-Gen. the event of the Treaties with Belgium and Germany being terminated, and (2), whether Canada it could properly, without authority from the Dominion Parliament, direct repayment of Cire. Rev. the excess duties now being levied on goods from those countries.

That Sir John Bramston was to enclose the Canadian Revenue Act, and to invite our attention to Sections 31 and 32, and to request that we would advise you whether, if the additional sub-section set forth in Lord Aberdeen's telegram of the 25th instant was inserted in the enacting clause respecting the Reciprocal Tariff of the Tariff Bill, and an assurance was given by the Dominion Government that they would refund the excess duties if our opinion should be adverse to their contentions as to the Treaties, you might properly inform the Governor-General that he might assent to the Bill; and, if not, that we would advise as to what further modification or amendment should be required.

We were also honoured with Sir John Bramston's further letters of the 9th June, 9th June and 18th June respectively.

In obedience to your commands we have the honour to

"

Report-

That, in our opinion, the Dominion Government has not Resolution as now worded to extend the benefits of the Reciprocal Tariff to Germany power under the and Belgium or other countries not admitting the products of Canada on terms as favourable to Canada as the terms of the Reciprocal Tariff. Special power to do this must be introduced with the Resolution, and, in our opinion, special power must also be conferred to direct repayment of the excess duties now being levied on goods from other tries. For the former of these purposes the Clause proposed by Lord Aberdeen in his telegram of 25th May 1897, appear to us to be sufficient, but there ought to be added at the end of such additional clause words conferring power to return the excess duties. The clause with this addition will then run as follows:-"The Governor-General in Council may extend the benefits of the Reciprocal Tariff to any country which may be entitled thereto by virtue of any treaty with Her Majesty, and thereupon any sums which may have been paid for duties in excess of those which would have been paid under the Reciprocal Tariff shall be returned."

If this additional sub-section be inserted and an assurance be given by the Dominion Government that they will refund the excess duties, as our opinion is adverse to the contention of the Dominion Government as to the Treaties, the Governor-General may

properly informed that he may assent to the Bill.

be

The Right Hon. Joseph Chamberlain, M.P., .

We have, &c.,

RICHARD E. WEBSTER.

ROBERT B. FINLAY,

Art.

&c..

&c.

&c.

14364-20-8,97 Wt 20260 D & S

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