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recovery, and that his complete recovery may take place much earlier than we had in our most sanguine moments anticipated. I havo to thank you, Sir, for the vory able address which you have delivored to this Con- ference, and the subjects which you have brought before us will receive our most careful consideration. There are many inatters in which we cannot all see eye to eye, such as this matter of free trade within the Empire, or even in the matter of preferential tarifls. There is one matter I should like to ask for a little explanation about from you. You said, I think, that free trade within the Empire would not necessarily mean that the Colonies would have to give up their revenue from customs. I should iko to understand a little more clearly in what way Wo should derive our revenues from customs, and at the same time have free trade within the Empire. At the same time, I agree with Mr. Seddon, that it would be very desirable that we should have a list of the articles upon which a preference to the mother country would be a benefit so far as imports to the Colonies from the mother country are concerned. I understand that as far as Canada is concerned, imports from foreign countries into Canada pay on the whole a lower tariff than the imports which generally are introduced into Canada from the mother country, and for that reason alone it would be desirable that we should know what are the particular articles which could be imported into the Colonies from the mother country upon which it would be to the benefit of the manufacturers and producers in the mother country that we should give preferential treatment. As to free trade within the Empire, Sir, having regard to the variations, the great differences there are throughout our Colonies, and their varied require- ments I think I may be permitted to say, as far as I am concerned, that at present I do not think it is within the range of practical politics, but I do consider, as regards preferential trade, that preference might fairly be given to the mother country, and that we at this meeting of Prime Ministers, might arrive at some conclusions and somo decisions which would have the effect of enabling the whole of the Colonies to grant preferential treatinent to the manufactures and products of Great Britain-of the mother country. have no doubt, sir, that this moeting will have beneficial results. I am sure that any meeting of Prime Ministers such as this must prove beneficial-I think it has been said by Sir Wilfrid Laurier already, that if nothing else comes of it, it enables us to know each other, and have an interchange of views, and it will lead to some good results, even though nothing practical may immediately result, and I, for one, Sir, carnestly hope that something practical will result, and I trust that it may be possibile to arrive at something practical as the result of our conference here. Sir Gordon Sprigg, Sir, has spoken with regard to the amount of expenditure per head of the population on defence. What applies to the Cape equally applies to Natal. I should think, if you take the European population of Natal alone, our contribution for the defence of that Colony exceeds 20s, per head of the European population. I have not taken the figures out, but I feel quite confident that it would be over 20s. per head of the European population. Of course, the native population must necessarily bo taken into consideration. They bring a certain amount of revenue to Natal, but they are the cause of a certain amount of responsibility also in the way but Sir Gordou Sprigg has explained. I do not think I need detain the meeting any longer. I can only assure you that what you have brought forward for our consideration will receive our most careful thought, and will I trust, lead to benefit, not only to the mother country and to the Colonies, but to the Empire at large.

Sir ROBERT BOND: Mr. Chamberlain, I desire to express my acknow- ledgement of the very great privilege that has been accorded to me, Sir, of listening to the able and eloquent disquisition on the views of Ilis Majesty's Government which has been given by you, Sir, in relation to the various important matters that this Conference has been convened to consider. When I have regard to the numerical weakness of the Colony that I have the honour to represent, I am sometimes embarrassed, but that embarrassment is to some extent removed when I remember the gracious words that were expressed by å representative of the Crown in the Canadian Dominion when

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addressing a very important convention there. A gentleman upon whose grave the flowers of affection are still fresh-I refer to the late Lord Dufferin said: "It is your numerical weakness that is your great strength, for it is a consideration that appeals to every generous heart. Far distant be the day when on an acre of soil above which floats the flag of England mere political preponderance shall be permitted to affect the interests of the minority in any part of Her Majesty's dominious." I quito appreciate that various important questions that will arise here for consideration will not affect the island that I havo the honour to represent to the same extent that it will the other portions of ilis Majesty's dominions. For instance the question of proferential trade is one with which we are not very largely concerned. At tho present time we occupy, I submit, a somewhat unique position, inasmuch as four-fifths of the whole imports of the Colony are brought in from Great Britain and British possessions. The whole revenue of the Colony, with the exception of returns from Postal Department, and Crown Lands, is derived from customs taxation, and, therefore, it is a matter that involves very great consideration indeed as to how we can in any way deal with the question of preferential trade. Our policy is a free trade policy, essentially so, necessarily so. The principle of our tariff taxation is, and always has been, entirely a free trade principle without discrimination of countries, yet, as I have observed, it has been practically proved that we are customers of British products to the extent of about four-fifths of annual imports. Questions will arise at this Conference which will materially affect the island that I have the honour to represent, and I trust to be able, to express some views that may be of interest and of value to His Majesty's Government as well as conducive to the interests of the Colony of Newfound- land. I would join, Sir, with those who have preceeded me in expressing the gratification that I feel at the news which has been conveyed by you to the Conference this morning, namely, the great improvement in His Majesty's health. The tragic turn in the events of the last week was calculated to dismay many people, but while the disappointment has been great in connection with the ceremonies that were about to take place, I feel sure that all sense of disappointment has given place to one of deep concern as regards the health of our most Gracious Sovereign. It will, Sir, be a matter of intense satisfaction to us, and to those we represent, if we are permitted at an early period to join in those manifestations of loyalty and devotion to the Crown that for a time must necessarily remain in abeyance.

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The SECRETARY OF STATE: I think the only matter which remains to do is to settle what days we shall meet, and what subject we shall take first. I would suggest that we take up the question of defence first, but I am entirely

in the hands of the Conference. Do you agree to that?

Sir WILFRID LAURIER; I quite agrce.

Sir EDMUND BARTON: I have no objection to any order, Sir. I think perhaps it might be suggestel that those subjects which have an affinity with one another should be grouped so as to exhaust the proposition.

The SECRETARY OF STATE: Yes, that shall be done.

Then, if that

is so, I will at our next meeting invite representatives here from the Admiralty and the War Office, and possibly you will have Sir Frederick Bordon,

Sir WILFRID LAURIER: We shall be at liberty to bring our colleagues?

The SECRETARY OF STATE: Certainly; but the only thing, I should like to know who are coming, so that we may make arrangements for them.

Sir WILFRID LAURIER: 1 will send word..

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