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PUBLIC RECORD OFFICE

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TITT C.O. 885

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PUBLIC RECORD OFFICE, LONDON

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PRESENT ALSO :—-

The Right Honourable The Earl of SELBORNE, the First Lord of the

Admiralty.

Rear-Admiral R. N. CUSTANCE.

The Right Honourable GERALD BALFOUR, M.P., the President of the

Board of Trade.

Sir FRANCIS HOPWOOD, K.C.B., C.M.G., Permanent Secretary to the Board

of Trade.

Sir ALFRED BATEMAN, K.C.M.G.

The Honourable W. PATERSON. Minister of Customs for the Dominion of

Canada.

The Honourable W. S. FIELDING, Minister of Finance for the Dominion

of Canada.

The Honourable Sir WILLIAM MULOCK, K.C.M.G., Postmaster-General for

the Dominion of Canada.

The Right Honourable Sir JoHN FORREST, G.C.M.G., Minister of Defence

for the Commonwealth of Australia.

Mr. T. W. HOLDERNESS, C.S.I., for the India Office.

TRADE RELATIONS.

The SECRETARY OF STATE: The first question is the question of trade relations.

Sir WILFRED LAURIER: I will ask Mr. Fielding to make statement on the subject.

H

Mr. FIELDING: At our last meeting, Mr. Chamberlain, A draft resolution was submitted by the Canadian Government, which had been the result of some consultation with the representatives of the other Colonies. I think I am correct in saying that it was reasonably satisfactory to most of the Prime Ministers, with perhaps the exception of Mr. Seddon, who desired to have it printed and distributed, as he had not had the opportunity of seeing it in its final shape. The only objection expressed to the resolution was that it proposed to commit the Imperial Government to a line of action which, at all events for the present, you, Sir, do not feel at liberty to commit them te, and that part of the resolution had to be revised. In what I now submit a change has been made in conformity with

The resolution, while your views. affirming the principle of preferential trade, does not commit the Imperial Government to it, but says the Prime Ministers urge it

upon his Majesty's Government,

Mr. SEDDON: Will you kindly name the Prime Ministers to whom are alluding?

you

Mr. FIELDING: At this moment, Sir, I was alluding to the objection taken by Mr. Chamberlain.

Mr. SEDDON: I beg your pardon.

Mr. FIELDING: I stated in my carly observations that I thought the resolution was acceptable to most of the Prime Ministers with the exception of Mr. Seddon, who wished it distributed before expressing an opinion. said that the other Prime Ministers were not perhaps entirely in line, but they agreed to and accepted it. At all events, as I then said, they would speak for themselves, but the resolution was framed as a compromise, and in the hope that it would meet with the views of the various Prime Ministers. The change which is now suggested is, however, entirely to meet the suggestion of Mr. Chamberlain, who stated that he could not by any resolution

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undertake to commit His Majesty's Government, but that the Prime Ministers, if they saw fit, could express their own views in the matter, and that he would present those views to the Imperial Government. The resolution therefore, is drawn as I shall now read it:

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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.”

If

May I say, Sir, that the Government of Canada, in assenting to the terms of this resolution, if it be found acceptable to the other members of the Conference, do so in the hope and belief that the policy therein stated will be adopted by the other Colonies, perhaps not immediately, but gradually and at an early date, and also by His Majesty's Government. their hopes and expectations in this direction should prove unfounded, and if the policy adopted in Canada may not find acceptance in the other Colonies or the Mother Country, then it will be open for the Government of Canada to reserve to themselves every freedom to take such action as may seem necessary. At present we are acting on the assumption that, if not at the moment, at an early date, this policy may be made acceptable, not only to the various Colonies of the Empire, but also to His Majesty's Government. -

The SECRETARY OF STATE: May I have the resolution?

[The rosolution was handed to the Secretary of State.]

Sir EDMUND BARTON: Mr. Chamberlain, you will remember that a an early stage of the Conference I pointed out that whatever preference the velf-governing Colonies were prepared to grant to the products and manu- factures of the United Kingdom, they should be prepared to grant, without making any exaction from the United Kingdom in return, that is to say, that they should take the course which seems to them to be desirable, not making it an exact stringent condition that the United Kingdom should return in any particular shape, whatever preference in trade might be given by the Colonies, but that we should take our own course, in full reliance on the sense of generosity of the Government and Parliament of the United Kingdom, when the occasion arose, to render us help in return for such help as we endeavoured to render to the Mother Country. I remain of the same opinion, while I should be prepared to assent to the resolution as it originally stood under the impression that it received the assent and support of His Majesty's Government; finding that that is not so, I am not at all disposed to attempt to insist upon au adherence to the original form of the resolu- tion, and the form which it now assumes is so much in accordance with the views I originally expressed at the opening of this Conference that I think I am not only bound to assent to it, but I feel pleasure in doing so.

The SECRETARY OF STATE: Mr. Seddon, do you agree or—-——,

Mr. SEDDON: I must say I do not think, the resolution goes far enough. I prefer a slight modification of the resolution which was submitted by the

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