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Mr. SEDDON: Should not this have been printed and circulated?

Mr. FIELDING: It has only been sent here this morning. The resolution in its present form is this:-

"1.That this Conference recognises that closer trade relations between the United Kingdom and His Majesty's dominions beyond the seas would stimulate and facilitate mutual commercial intercourse, and would, by promoting the development of the resources and industries of the several parts, strengthen the Empire.

2. That this Conference recognises that in the present circum. stances of the Colonies it is not practicable to adopt a general system of free trade as between the Mother Country and the British dominions beyond the seas.

3. That with a view, however, to promoting the increase of trade within the Empire it is desirable that those Colonies which have not already adopted such a policy should, as far as their circumstances permit, give substantial preferential treatment to the products and "manufactures of the United Kingdom, and that the United Kingdom

should grant preferential treatment to the products and manufactures. of the Colonies, either by exemption from or reduction of duties now or hereafter imposed."

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An effort has been made to follow somewhat the lines of Mr. Chamberlain's draft resolution and meet the criticism which was offered by some of the Prime Ministers. Mr. Chamberlain's draft rosolution concluded with a pledge on the part of the various Prime Ministers to present this matter to their respective parliaments. We in Canada would have no hesitation in accepting that, but I understand the Prime Ministers of other Colonies have hesitated to accept it in that form. What is presented here is a basis for discussion without any anticipation that it would be a finality.

Sir EDMUND BARTON: Mr. Chamberlain, I am in general agreement with the resolution which has been proposed, and which I had an opportunity of discussing with the representatives of other Colonies. To put myself right by defining the interpretation which I put upon the words closer trade relations," they seem to me to apply not only to a case where duties aro abolished or reduced, but also to cases where duties are raised as against the foreigner without raising them as against the British citizen. Because of this the effect I take it of raising the existing duty against the foreigner and leaving it at the old rate against your countrymen or the Empire, is to promote closer trade relations with the Empire by throwing the available balance of trade into the bands of the Empire rather than into the hands of the foreigner. It is only on that interpretation of these words that I have been able to consent to the resolution occupying that form.

I would like to explain also that as to the last paragraph of the resolution, I have asked, and it has been agreed to, that any reference to the two means alone of reduction of and of exemption from duties should be omitted as regards the Colonies so that they may choose their own form of Customs or other preference, whilst it would be more acceptable as we understand to His Majesty's Government that those two means should be specified as relating to their own probable action. The words have been left in, as I understand, in order that a definition which would be suitable to His Majesty's Government might be so applied in any probable action of theirs.

The SECRETARY OF STATE: I think this must be printed aud further considered, but I will make one observation on seeing it for the first time, and at the last Conference upon which this is supposed to be an advance, the Prime Ministers unanimously agreed, where they had not already given a preference, and they would recommend such a preference to their respective Parliaments; and they did that without asking for anything in return. Canada had given a preference to the United Kingdom, and the Prime Ministers of the various States present promised to submit the desirability of giving a preference to their respective Parliaments. Now, for the first time, there is

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introduced into the resolution that the United Kingdom should grant a preferential treatment to the products and manufactures of the Colonies, either by exemption from or the reduction of the duties hereinafter imposed," and nothing is said to show how the United Kingdom is to get this concession, over and above what she was to get without the concession at the time of the last Conference. In fact, as this stands, it is a retrograde motion.

Sir WILFRID LAURIER: It is quite true that when the Canadian Parliament adopted the policy of giving a preference to the products of Great Britain in our markets, we did it absolutely without any spirit of gain from it. We did it because we thought first of all it was expressing the feelings of the Canadian people towards the Mother Country, and we did it because we thought it would open the door for subsequent policies in that direction. And, I may say, Mr Chamberlain, that we expected in Canada, though we would not ask for it, that if the time came from any circumstances whatever that the then existing tariff of the United Kingdom were to be modified, and new duties were to be levied or to be imposed, and especially upon the class of articios which were produced by the Colonies, that they would have a similar exemption granted to them. And I am bound to say that there was some disappointment in Canada when the last duty on coreals was imposed, that the Colonies were not exempt from it. But it is quite manifest that if this Conference is to produce any result whatever, we must endeavour to agree upon some policy upon which all parts of the British Empire can unite, and I do not know that it would be at all conducive to the result which wo all anticipate in favour of an expanded trade development, if in all parts of the British Empire you were to leave it to such action as may be taken by any Colony or by any Government.

Of course the conditions of one country and another are very different: at the same time we think that a time has arrived when it would be advisable to lay down such a foundation as would enable all the parts of the British Empire to act together in one direction. I must, for my part, with all due respect, demur to the sentiment expressed by Mr. Chamberlain that what we have done has not been conscientiously done, that what we have done is to be taken as not voluntarily done, and that it is to be supplemented by something else. The position is that if what we have done is not to be taken into consideration it would amount to penalising us for We have been blained having taken such action as we have already taken.

by some parties for having given that preference without having exacted a quid pro quo.

We thought it would not be dignified, it would not be the proper spirit at the time to exact a quid pro quo; but at the present time we would be very sorry now if we were to be placed in the position that we would have to regret the action which we have taken, and I hope, on further consideration, this view will be taken into due consideration. I say this, as an explanation of the position which we are obliged to suggest in this resolution, that if the policy is to be accepted, it is to be accepted and acted upon; it is a policy which should be acted upon by all the Governments, including His Majesty's Governinent in Great Britain.

Mr. SEDDON: I have not had time to consider the resolution. It was discussed yesterday. I was not able to be present with the other Prime Ministers. It will need some time to consider the resolution. Generally I say we do not seem to be getting much further ahead than we were when the last Conference met in respect of this most important question and which was the question of all others on which we are meeting to confer. However, I will look into the matter fully by the time we meet again.

Sir ALBERT HIME: Might I say so far as Natal is concerned that we do not ask for any reciprocity on the part of the Imperial Government, and I understood the last two lines in the third paragraph of the draft resolution were inserted by yourself and were not the particular suggestion of other Prime Ministers. So far as Natal is concerned we offered to give this preference without any terms whatsoever, and we are quite willing to agree Z 2