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PUBLIC

RECORD OFFICE

། ། ། །

سلنا

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Reference :-

C.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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The resolutions of the Conference upon trade relations refer to two other questions.

The second resolution states that "this Conference is of opinion that any provisions in existing treaties between Great Britain and any foreign Power which prevent the self-governing dependencies of the Empire from entering into agreements of commercial reciprocity with each other or with Great Britain should be removed."

This question is, of course, one which must be considered with the Foreign Office and the Board of Trade. I believe that there are only two treaties, that with Belgium of 1862 and that with the Zollverein of 1865, under which the question can be raised at all, and that with regard even to them the law officers have advised that they do not prohibit Inter-colonial arrangements of reci- procity. So far, therefore, as this portion of the resolution is concerned there seems to be really no treaty impediments.

The third resolution advocates the adoption by this country of a system of differential duties in favour of the colonies and vice versa. I do not suppose that the Cabinet would think of abandon- ing our Free Trade policy in the manner thus proposed, involving, as such a step would, the whole doctrine of Fair Trade. An able paper, drawn up by Mr. Giffen, was circulated soon after the formation of Mr. Gladstone's Government in 1892, which, to my mind, disposes of the whole matter. It will be observed that three of the Australian Colonies voted against the essential part of the resolution, marked A, and it is clear from Lord Jersey's account of the discussion that the supporters of the resolution themselves had no expectation that the Imperial Government would accept it. I strongly advise its rejection.

Steamship Communication.

The discussions of the Conference clearly show 'that there is a strong desire for the establishment of a line of fast steamers between this country and Canada, and between Canada and Australia by the Pacific, and that the colonies concerned are prepared to support such an undertaking by subsidies of their own. They also ask Imperial aid in some shape or other. That there would be advantages in the existence of such a line will not, I suppose, be contested-whether it could be aided at all by the Imperial Government, and if 80, in what way and to what extent, are questions, in the first instance, for the consideration of the Treasury and the 'General Post Office, and will be first brought before the Inter-departmental Com- mittee on the Mail Services. I do not, therefore, ask the Cabinet for any decision on the matter at present.

Pacific Cable.

I believe that the Australian Colonies attach more importance to this question than to that of steamship communication, but it is not yet ripe

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for decision. Since the Conference sat and Lord Jersey's Report was written it has been ascer- tained that the Government of Hawaii-subject to the consent of the United States, which is necessary on account of the Reciprocity Treaty of 1875 between Hawaii and that country-is willing, provided that connection is made with Honolulu, to lease an island of the Group for the purpose of a cable station, and to ask their Legis- lature to give a subsidy towards the maintenance

of the cable.

The Canadian Government have also, in re- sponse to their advertisement, received six tenders for the construction of their cable and its mainten- ance for three years ranging from £1,250,000 to £2,000,000, according to the route and quality of the cable.

These tenders have not yet been communicated officially to Her Majesty's Government or to the Colonial Governments interested. -

The resolutions of the Conference actually ask for little more than an examination of the ques- tion, and it will be observed that various steps have already been taken in that direction. hope that the Admiralty will be able to order a more complete survey to be made. Such a compliance with the wishes of the colonies interested would be received with great satis- faction by them, and would be probably all that could be done at this moment.

I will merely add that the Conference was, from

a general point of view, a decided success; that an excellent spirit was exhibited throughout its dis- cussions; and that Lord Jersey discharged the duty entrusted to him with skill and judgment. It is very important that, whatever may be the ultimate decision of the Cabinet upon the ques- tions raised at Ottawa, the friendly and loyal spirit evinced by the Conference should be met with as much consideration and sympathy as the subjects to be dealt with admit.

26th December, 1894.

RITON.

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