CO885-(16-18) — Page 506

PUBLIC RECORD OFFICE

Reference :-

C.O-885

17 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO |

42501.

88

No. 21:

The SECRETARY OF STATE to the HIGH COMMISSIONER FOR SOUTH AFRICA.

(Sent 10.45 a.m., December 18, 1906.) ·

18th December, No. 1.

TELEGRAM.

[Answered by No. 24.]

YOUR despatch No. 950, 29th October. Question of preferential trade has been proposed for discussion at Colonial Conference, and I should be glad if you could supply despatch or memorandum showing how actual preference granted to British trade, under Convention of 1906, compares with preferenee under Convention of 1903. I presume that it is too early to state results of preferential arrangement with Canada, but should be glad to receive expression of opinion as to that at the same time.-ELGIN.

47,585.

No. 22.

The HIGH COMMISSIONER FOR SOUTH AFRICA to the SECRETARY OF STATE.

(Received 6.35 p.m., December 24, 1906.)

TELEGRAM.

24th December, No. 251.-Referring to my despatch No. 507, 11th June,† I am glad to be able to inform your Lordship that arrangements for pre- ferential treatment between South African Customs Union and Colony of New Zealand have been successfully concluded and will come into operation from 1st January. Despatch giving details of arrangement will follow by next mail.-SELBORNE.

46608.

No. 23.

COLONIAL OFFICE to BOARD OF TRADE.

Downing Street, February 19, 1907.

Sir,

I AM directed by the Earl of Elgin to transmit to you, to be laid before the Board of Trade, copies of resolutions on the subject of preferential trade proposed to be submitted to the Colonial Conference by the Govern- ments of Australia, Cape Colony, and New Zealand.

2. The Board will observe that the Governments of Australia and Cape Colony propose to re-affirm the Resolutions of the Conference of 1902 on this subject, and to urge the grant of preferential treatment to the products of the Colonies entering the United Kingdom. The New Zealand resolu- tion is to some extent different, inasmuch as it only calls for the grant of preference by the United Kingdom in the case of colonial products now taxable. Concurrence in this resolution would, however, involve the accept- ance of the principle of preferential trade. The Australian resolution, in addition to preferential treatment in the United Kingdom, advocates preferential treatment of the self-governing Colonies by one another.

3. His Majesty's Government have agreed to the discussion of these fiscal questions at the Colonial Conference, and the Chancellor of the Exchequer,

† 23609; uot printed.

See pages 6, 8, and 11 of [CJ. 3337].

• No. 20.

89

as being the Minister chiefly responsible for the presentment of the case for the fiscal policy of the United Kingdom in the House of Commons, will be present at the meetings when the subject is considered.

4. As the Board of Trade are aware, the question of preferential trade engaged the attention of the Conference of 1902, and memoranda and statistics prepared on behalf of the Board formed part of the materials before that Conference. Two copies of a Colonial Office paper, containing the proceedings of the Conference, are enclosed for convenience of reference. The Parliamentary Paper [Cd. 1299] shows what was published in connection with the Conference. At that time the Dominion of Canada alone granted preferential terms to the United Kingdom, but the South African Customs Union and New Zealand have since made similar arrangements, and the Commonwealth Parliament has recently passed a British Preference Act, the Australian operation of which has been delayed in view of certain treaty difficulties. Reserved Copies of this Act, and of the South African Customs Convention,† and New Preference Zealand Preferential and Reciprocal Trade Act of 1903,‡ are enclosed for convenience of reference.

5. Lord Elgin considers it very desirable that the Board of Trade should on the present occasion prepare materials with reference to which the deliberations of the Conference may proceed. It would seem advisable that a memorandum setting-forth the attitude of His Majesty's Government on the question of preferential trade, and the grounds on which it is based, should be drawn up, with the concurrence of the Lords Commissioners of the Treasury, and that copies of it should be available for communication to the Prime Ministers on their arrival in this country early in April. So far the despatch of Lord Ripon of 28th June 1895 (printed in [C. 7824] of 1895) remains on record as the statement to the Colonies of reasons for adhering to the present fiscal and commercial system of the United Kingdom. It will be noted that the South African Customs Union (in the Convention of 1906) and New Zealand have proceeded on the basis of increasing duties and rebating the whole or part of the increase in favour of British goods.

The Board will also no doubt take account of the recent tariff changes in Canada, and especially of the possible effect of the "Intermediate" tariff proposed for purposes of negotiation with Foreign Powers.

6. To the memorandum above suggested might be appended statements bringing up to date the statistical information supplied by the Board of Trade in 1902, and also indicating how far the view expressed as to the relative values of foreign and colonial trade on page 7 of [C. 7824] still holds good.

Act.

7. Statements night also be appended showing, as far as possible, the actual value to British trade of the preference accorded in South Africa, New Zealand, and Canada. In the two former cases the papers enclosed C.O. to B. of in the letters§ from this Departinent, noted in the margin, will be of use, T., 24th De- but the Board may think it proper to pay special attention to the case of cember. Canada in view of the fact that the preferential arrangements there have been T., 9th Ja in force over a much longer period, and that at the Conference of 1902 there was difference of opinion as to their results. The more recent statistics may render it possible to arrive at a definite conclusion on the point.

C.O. to B. of

nuary 1904.

8. On the question of preferential trade arrangements between the self- governing Colonies, reference may be made to pages 7-8 of [C. 7824] of 1895. His Majesty's Government have acquiesced in recent arrangements of this character effected between the South African Customs Union and Canada, Australia, and New Zealand respectively. Similar arrangements between Australia and New Zealand and Australia and Canada have been proposed, but no decision has been arrived at. The papers enclosed indicate the tariff Australia concessions made to the South African Customs Union by Australia and Act 17 of New Zealand respectively in return for the grant of preference equal to that granted to the United Kingdom. The South African Customs Union and Canada grant to each other the same preference as they grant to the United Kingdom.

• Miscellaneous No. 144.

† In [Cd. 2024.]

✦ [Ca. 2977.]

§ 42501 and 244; not printed.

1906,