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PUBLIC RECORD OFFICE

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Reference :-

C.O. 885

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

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in New Zealand waters. Well, I may say that the reason why those words were included was that we thought probably the attractions of Australia were so great that we should never see a man-of-war at all in New Zealand waters, and we desired to have two at all events in our waters.

If you look back to the history of the period you will see there was a danger as far as New Zealand was concerned which was thought not to be so applicable to Australia. Australia, of course, had her defence so far as the other Colonies were concerned, and they were only placing New Zealand on the same footing as they themselves had put themselves when this condition was included. But I think the Admiralty will admit this, that on each occasion when they had asked for that condition and limitation to be waived to meet emergencies that had arisen, the reply has been in each case in the affirmative and without the slightest hesitation, so I think we may face the conditions and the cases as they arise. I agree with Lord Selborne, and we all know, that those best able to direct are those in charge of the British Navy. We and they know the weakest spot, what I may term the feeding ground, would be the Capes. Were anyone going to strike a blow and to stop the food supply of the Mother Country or to strike a blow at the commerce of the Colonies, they would not trouble themselves about the coasts of New Zealand or Australia, they would go where there was a concentration of merchant vessels, and it would be, of course, I think, essential and necessary that there should be no restriction whatever, that complete directions should be left to those having the responsibility for the Naval Forces of the Empire for the time being.

Now then, as I have said, of course we must come to this general question of the contribution. Mr. Chamberlain, in his opening address, referred to the fact that the total amount contributed by the Colonies per capital for defence purposes was as stated under the head of the Military and Naval Expenditure in 1898-99. I do not know, in the first place, why the year 1894-99 should have been selected. I have to-day brought the New Zealand Year Book as far as regards our Colony; probably other Prime Ministers will do the same; and I notice hero that in New Zealand the amount per head is based upon an expenditure of 126,307, whereas our expenditure for 1900 was 160,178., and our expenditure, of course, last year is very much larger still. I take it myself that our expenditure per annum per head directly is about 5s. However, relative to the cost available for the purpose of the Mother Country, the contrast would look unfavourable to the Colonies, and, I think, in justice to the Colonies, we might be pardoned if we were to show what we in New Zealand have to bear, and which renders it impossible for us, under existing conditions, to do much more than has been done at the present.

Customs Revenue per head of European popula-

tion for the year 1900

Total Customis duties

Total Excise duties

Direct taxation, land and income tax Expense ou establishment of National Defences 1900–1901 (equal to 4s. per head of population) Taxation per bead of mean population, 1901 Rate of revenue per head of mean population Revenue for the year ending March 31, 1901 The ordinary expenditure

Public Instruction (or equal to 128. per head of

population)

·

ጸ.

2 16 10 2,107,354 0 0

89,284 0 0 468,393 0 0

160,178 0 0

نا

3 19 7 14 4 5,906,916 0 0 5,479,703 0 0

481,087 0 0

Now what we do which is entirely outside the cost thrown upon us as a self-governing Colony. We have burdens cast upon us that are not thrown upon the people of the Mother Country at all. Private enterprise has supplied the Mother Country with that which we have to do ourselves in the Colonies. There is the development which must proceed and which entails upon us a very heavy expenditure. We have, for instance, the question of public instruction, which, in our Colony-I think it is all the same in Australia---is equal to about 128. per head of the entire population. Then--perhaps

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as you know there is 58. per head of the entire population for old- age pensions in the Colony; 80 that outside this of course we have of her functions and duties-as I told you-with their attendant cost. Some.

of course,

are more than self-supporting, but there will of necessity before many years to come, especially in respect to development, be costs entailed upon the self-governing Colonies which are not entailed upon the people of the Mother Country, and I say that they must go on, and wili be for years a loss to the people. I make this reference because it is a duty that we owe to the people of the Mother Country. The heavy burden they are bearing for defence as compared with what we are paying, Without some explanation it would appear as though the Colonies and Dominions beyond the seas were acting selfishly in the matter. But I will conclude my remarks under that head with saying that in this development of the self- governing Colonies, the people of the Mother Country-our people at home-- profit very largely in that development, and it does not cost them anything whatever; the entire cost is thrown upon the self-governing Colonies.

It

Mr. Chamberlain referred to the question that if we contributed directly for the purposes of Imperial defence that would, of course, bring with it representation. I speak for myself other Prime Ministers will also do the same-I say that some representation of the Colonies is ‹lesirable. would be of benefit both to the Colonies and the Mother Country and would keep them in closer touch. But I am afraid that if that can only be obtained through and by the Colonies directly accepting the responsibility and contributing directly to the Imperial defence. It will be some time before the Colonies will have that representation. I say so now. I think it is time to speak plainly, so that there will not be any misunderstanding. I may say during the time we have had the burden cast upon our Colonies in respect to the war in South Africa, whilst we have there accepted voluntarily, a responsibility-a responsibility such as has been suggested here it was done voluntarily and unconditionally when the emergency arose. I believe myself it would in the future come voluntarily; it would be as freely granted in other respects; but to do it by an agreement or to ask us to come to do it by an agreement, in my opinion, would not meet with favour in the Colonies-at least, I speak for my own Colony. But indirectly I cannot say the Colonies are-I speak for my own Colony-prepared to help the Mother Country. We do not stato specifically in granting the bencut to her what the money is to be applied for, but if we give to the Mother Country advantages which we do not give to other countries, and under which the manufacturers of the Mother Country profit, then I say that it is a contribution. Ten per cent. preference on British goods imported into New Zealand means 150,000l. a year. I may say at once that New Zealand is prepared to give that, and ask for nothing in return. If the Mother Country likes to assist in the way of helping us by taking our products we shall be very pleased to have her assistance; but we can, I think, give a preference, and thus indirectly do that which if asked for would not be granted.

I will not say anything further on that point, because we have the larger question of finance and tariffs, which we must defer to another occasion, beyond saying that it would be equal to paying the interest on five millions of money at three per cent., and correspondingly you might say that the Colony of New Zealand by paying this would be paying the interest on five battleships that might cost a million each. I say I think that is a fair con- tention, and that we might raise it under this head. This resolution, sir and gentlemen, as far as land forces is concerned, was referred to the Joint Com- mittee of both Houses of Parliament in New Zealand, and they agreed to it. The Defence Committee at home has had the matter under review, and they have come to the conclusions on the matter which are now put before the Conference. Of course, members can see this for themselves, but still, I may say that the conclusions arrived at by the Defence Committee is that the proposals are feasible, and that some amendment night be made applicable with advantage, and that being the case, although the resolution as now worded may require some modification or amendment, I should be quite willing to meet the wishes of the members of the Conference, and to modify it if it is a question of getting a start-made in the direction indicated. I therefore have pleasure in placing it before the Conference for consideration and, if D

E. 21,520.

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