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PUBLIC RECORD OFFICE

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consideration on our part. That is in the highest degreo desirablo, because I tako it that in its surroundings, the time at which it takes place, and the stage of the development of the Empire, this is the most important Conference which any Minister of the United Kingdom will yet have assembled. You may be sure of one thing that the breadth and generosity of the views you have expressed are appreciated, and also of another thing that tho varieties, by reason of geographical conditions which exist between different parts of the Empire, may prevent some of us from viewing all matters from the same standpoint as yourself. That of course is an inovitable necessity. I might put forward just two considerations in illustra- tion of that. The subjects of government which are undertaken in the self- governing colonies are far more numerous than those which are considered right to be undertaken in the United Kingdom. Perhaps bur subjects of government outnumber those with which you deal by scores, because collective action on the part of the State for public purposes has gone much further, whether for right or wrong, in the Colonies than it has done here. The result is that there are much greater proportionate claims upon the public revenue, and that money which under ordinary circumstances and with a more limited sphere of active government might be spared for purposes such as those which we have met to consider, is with much more difficulty made available. That is the first consideration that strikes me, and the other is that in the Colony from which I come, the Commonwealth of Australia, the customs revenue is necessarily high for the purpose of making the necessary returns to the component States, so that in the early years of the Commonwealth they may find their finances as little as possible embarrassed. Here, then, are two conditions, one which is applicable to all of us, the other perhaps peculiarly applicable to Australia, but either of them perhaps would prevent us from seeing eye to eye on all subjects. That, however, is not a thing to be looked forward to, except with the very greatest regret. Fiscal systems must differ in the various parts of the Empire, and I would like to say this, that the conditions of permanency of any possiblo resolu- tions or arrangements that may be come to would be much more secured by their being such as may be accepted by the various self-governing colonies under different fiscal systems, and for this reason, that other- wise their continuance would be immediately endangered by any change of government which involved a reversal of fiscal policy. Those seem to que to be the two guiding considerations, the two matters which press upon one's mind as arising out of the fine address which you have given us, and I hope that notwithstanding the pressure of these subjects and of these con- siderations we may yet arrive at conclusions which will be of the highest value. On the remainder of the address I propose, like my colleagues. to reserve any- thing I have to say until we have settled our procedure. May I add this, that I thoroughly endorse what Sir Wilfrid Laurier has said with reference to your observations upon the illness of the King, and that it is a source of very great pleasure I am sure to all of us that at our first meeting we find such a happy result to be probable as you have indicated to us this morning.

Mr. SEDDON: I would like to say, Mr. Chamberlain, that we learned with extreme pleasure this morning that our Gracious King's health was much improved, and, if anything, bettor than what has been formally notified in the official bulletins. We therefore commence our proceedings this morning under most favourable circumstances. Our Sovereign's illness cast a gloom upon

the Empire and upon all the people within the Empire, differing as they do in colour, and speaking different languages, but there has only been in our opinion one feeling, and that was that our King migh; be spared to us, and notwithstanding the keen disappointment caused by the postponement of all functions, yet I do believe that what has occurred will bring our King into much closer touch with his people than any Coronation ceremony, grand as it would have been, that could have takon place.

1 must first of all express the very great pleasure I had in listening to the able address that you have delivered to us this morning, and 1 must also express my satisfaction in this respect, that although we must take the speech under the conditions under which it was delivered, and reflect that there would of necessity be a reservo, still there has been sufficient

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indicated that would encourage me and those who are present to como to the conclusion that the results of the Conforence, although perhaps not coming up to the expectations which had been formed, still that... per- manent good to the Empire will be the result of our meeting. As stated by Sir Wilfrid Laurier and Sir Edmund Barton, the Prime Ministers of Canada aul the Commonwealth of Australia respectively, there are no doubt difficul- ties which arise from the different conditions obtaining in the several Colonies. In New Zealand, I believe, we are more favourably situated than they are either in Canada or in New South Wales, and better prepared to grant a preferential tariff, but although that is the case, we must not press an advantage, but, as far as we can, come to conclusions which will be general in their application, and meet those who, I say, are perhaps not quite so favourably situated. I must confess that I listened with astonishment and disappointment to what has resulted in respect of the preference given by Canala to the importation of British goods, and I have no doubt on this probably there will be a difference of opinion on the statements made by you in that respect. Some attempt, at all events, will be made to controvert them, but I take it for granted that, at all events, the great good that was anticipated has not ensued, although it may perhaps ultimately be proved that they are slightly better than you have indicated. It is my pleasure, and I think it is only fair to New South Wales, to say a word or two which, in justice to that Colony, I think should be said now ; pro- bably it escaped the attention of the Prime Minister of the Commonwealth, but as I was a member of the late Conference, and one who came to the con- clusion which was referred to by you in your speech in reference to a preference being given, that at that time New South Wales had practically

free trade.

The SECRETARY OF STATE: Yes.

An

Mr. SEDDON And consequently nothing could be done beyond that which they had done, unless it had been to increase their tariff upon the manufactured goods of foreign nations. At the same time there is a change now, and with you we delight in knowing that the federation of Australia has taken place, and that federation will place Australia now in a better position than it was before in dealing with the large questions which are now submitted to us for consideration. There are perhaps one or two points that it would be as well to enlighten us upon, and get the papers prepared before we should be in a position to fairly judge the situation in respect to the manufactured goods sent out from the mother country. I would like to have myself a list of the articles upon which reductions could be made to the greatest advantage of the manufacturers in the mother country. indiscriminate reduction might probably not make any material alteration as regards foreign nations, and although we might make a distinction in the amount of duties levied, we should not do that amount of good to the trade of the mother country that we intended. And this point struck me when you, Sir, were speaking with reference to the preference given to British manufactured goods going into Canada. I would like, therefore, for the information of myself, and it might be interesting to other members, if we had a list of articles prepared of manufactured goods in the mother country showing how we could best give a preference on these goods to help the manufacturers in the mother country. I may also point this out to you, and it should be, I think, recognised by those here and those within the mother country, these particularly engaged in manufactures, as young nations we are endeavouring to establish industries of our own, and those present will, I think, agree that it is a right and proper thing to do.

Therefore there are some who feel that in giving a preference

to manufactured goods of the mother country there may be a difficulty with the Colonial Governments in respect of those who have invested their capital, and who, under existing tariffs, have established these industries. A radical change would recoil probably upon the administration who made it, and you must, therefore, consider that at this time we are dealing with the question as a whole. Again, on the other hand, I speak from a revenue standpoint. The difficulties in respect of revenue are

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