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strong opposition was to be given the Convention in the Senate, he wrote the Prime Minister suggesting that further concessions might be given the United States by Newfoundland, so as to insure the passing of the Convention by the United States Senate. The correspondence, which continued up to date the 15th of January 1903, all indicates that His Majesty's Ambassador at Washington, believed that, in signing the Convention, and subsequently suggesting to the Colony further means to secure its adoption by the Senate of the United States, he was acting with the full approval of His Majesty's Government and in the interest of the Colony.

It may not be amiss to state that, on the 21st of November 1902, Sir John Anderson, then Under Secretary of State for the Colonies, wrote the Prime Minister congratulating him on the result of his mission to Washington and intimating that the Convention appeared to him "to be a distinct improve- ment on the 1890 draft.”

5. Passing to paragraph 4 of the despatch under reference this Govern- ment would only observe that the Colony's position as regards a preferential tariff with the United Kingdom was clearly and accurately set forth by the Prime Minister at the Colonial Conference in 1902. That if His Majesty's Government had adopted a preferential tariff to the Colonies; if it had pledged itself to such a policy and there was unmistakable evidence that the people of the United Kingdom would endorse and assist such, then there might be some warrant for the position assumed in that paragraph. But His Majesty's Government has not adopted such a policy, neither is it pledged to it, and, so far as can be gathered from the press of Great Britain, there is no indication that the British public will endorse or assist such a policy. At the present moment the produce of the United States as well as of all other foreign countries enters the markets of Great Britain upon an equal footing as those of the British Colonies; therefore, until a preferential tariff to the Colonies has been adopted by His Majesty's Government, it does not appear unreasonable to expect that the Colonies of the Empire shall be left free to carry out such fiscal policies as their respective local conditions render necessary, provided such policies in no way discriminate against Great Britain, British Colonies, or countries entitled by Treaty to most-favoured-nation treatment.

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6. The fifth paragraph of the despatch is noted with profound regret and astonishment, inasmuch as it sets forth that, "so long as it appeared that the strength of the opposition in the United States to reciprocal commercial arrangements with foreign countries was such as to make it practically impossible for the Convention to receive active consideration at the hands "of the Senate," this Colony was to be permitted to rest firmly in the belief that the measure, which it has laboured so patiently and untiringly to consummate during the past 14 years, and which holds out so much promise and hope to its people, would receive ratification at the hands of His Majesty's Government, but, now "that it is no longer safe to assume that "the Senate will not proceed to the discussion of the Convention," the faith and expectations of this people are to be destroyed by the immediate action of His Majesty's Government.

This Government feel compelled to record their non-acquiescence in a course of procedure and judgment, neither the justice nor the policy of which they can fathom.

It is with no desire to strain an interpretation of the words used by His Majesty's Government that the foregoing observation is made. This Executive do not fail to appreciate that His Majesty's Government may regard their interpretation as a strained one, but it has to be remembered that this is the very first intimation that the Colony has had of the intention of His Majesty's Government to interfere with the progress of the Convention. In paragraph 2, His Majesty's Government refers to a despatch forwarded to His Excellency the Governor of this Colony, bearing date the 9th of January 1903, in which the Secretary of State said, "I observe that in its final form the Convention differs from the draft in one point of importance- the addition to Article V. " of the words 'and that no heavier duty shall be imposed on articles coming from the United States than is imposed on such articles coming from elsewhere,' and that if this provision had been in the draft which was

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ns of the different parts of the Empire inter se should not be y any agreements with foreign countries requiring that such ould receive the same treatment as may be accorded to other Empire, that this principle had been unanimously adopted by Conference of 1897." This Government has been unable to 1 of the proceedings of the Colonial Conference of 1897. It is er, that the then Premier of the Colony had no authority what- le Government or the Colony to such a principle, and that he quently even submit the principle for the approval of his the Executive Council. It appears, moreover, upon reference of proceedings of the Colonial Conference, 1902, that the which His Majesty's Government directs attention became a far as all the Colonies are concerned, for, in his opening Conference, Mr. Chamberlain said, "the Premiers then (1897) undertook to consult with their colleagues, and to consider reference might not be given in their Customs tariff for goods om the United Kingdom. But nothing whatever has come of on up to the present time. No step has been taken to give any

(See page 7 of Minutes of Conference.)

seem from the foregoing that the resolution passed by the erence of 1897 was simply an embodiment of a desire to were practicable to frame a tariff in the respective Colonies uarantee a preference to goods imported from the United that this was a matter to be determined by the respective ›r consultation with their colleagues. It is respectfully. t such a resolution could hardly furnish a justification for Government refusing to ratify the Convention, negotiated and 3 Majesty's Ambassador at Washington in 1902. The action by that resolution was not a restrictive or coercive one on the ajesty's Government to be performed, but, as Mr. Chamberlain Colonial Conference in 1902, "a preference which the Colonies

voluntarily to accord to the United Kingdom." (See page 8 Conference.) graph 3 of the despatch under reference, it is said that "His overnment had no knowledge of the addition of the provision ed to) until the receipt of the text of the Convention as signed.' > statement of His Majesty's Government on that point is While this Government is surprised that such an able and mbassador as the then British Ambassador at Washington mitted to apprise His Majesty's Government of the paragraph he papers before them appear to furnish conclusive evidence he draft Convention, as signed on the 8th of November 1902, hen, on the 13th of October, he informed the Prime Minister of at he had cabled the amendment to Lord Lansdowne. The the 14th of October, he wrote the Prime Minister of this he had received a telegram from Lord Lansdowne that his Jos. 35 and 36, had been referred to the Colonial Office, and > sent as soon as possible"; and on the 18th October forwarded ond a copy of a cypher cable received from Lord Lansdowne im to "sign the draft Convention as amended," and to "inform d that His Majesty's Government relying on the assurance his letter of April 25th, 1901, that Great Britain and all British

1 all countries entitled by treaty to most-favoured treatment in nd, will receive the same treatment, both as regards bait and ies as United States, have much pleasure in authorising the of the Convention."

appears from the papers before this Government, which are complete, that the late British Ambassador at Washington d the Prime Minister of this Colony, with whom he corresponded hat any objection to the Convention had been raised by His ernment. On the 8th of November 1902, the morning the Con- igned, he wrote the Prime Minister of this Colony and forwarded the Convention as signed. Subsequently, having learnt that

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