8.—6

X

has enabled the steamer to take some 3,000 tons. With a little attention and dredging, 4,000 tons should easily be taken by the same steamer. This is an experiment, and has been done at the request of the Admiralty. We may look forward to other orders coming to hand. This is only the commencement, and it is not out of place to forecast that we shall not only supply coal, but that we shall find a market there for the staple products of this country. HAEBOUE DEFENCES, DEFENCE FOECES, AND VOLUNTEEES. Honourable members will observe that the defence expenditure this year amounts to .£258,141. This is a large sum, in proportion to our population of 800,000. It must, however, be borne in mind that a great portion of the proposed expenditure is non-recurrent. We have now a scheme approved by the Imperial Defence Committee, and it is our duty, compatible with the funds available, to give effect to the recommendations embodied in the Committee's report. The circumstances which arose in connection with equipping our contingents for South Africa compel me to ask for larger supplies of stores, and to take care that munitions of war and necessaries for the field should be obtained and stored, so as to be ready for use in the colony at any moment. It is essential that we should have 30,000 rifles, and that they should be of the same pattern and calibre. One of the four field batteries has arrived in the colony, and this must be properly equipped. The provisions made on the estimates are required irrespective of what may hereafter be determined on with regard to forming an Imperial Eeserve. Last year our appropriations were for the capitation and equipment of 8,000 Volunteers ; since then 3,000 have been enrolled, and applications are now in for ninety additional corps. A large number will not be able to earn capitation money this year, so the amount asked will be sufficient to meet requirements. Appropriations are also rendered necessary in connection with the formation of rifle-clubs and cadet corps. PEEFEEENTIAL DUTIES.—EECIPEOCITY. Having submitted important tariff proposals in the shape of reductions on the necessaries of life, it is not out of place at this time to review another question —namely, that of having preferential duties with a view of encouraging trade and establishing reciprocity. There are, in the first place, preferential duties as applied to manufactured goods from the Mother-country. This has been tried in Canada, has proved successful, and been a boon to Canada as well as to Great Britain. The next in order is reciprocity with Canada; and it will not be unreasonable, seeing the large and growing trade with America, if we were to ask that nation to admit our wool and. such other products as they require duty-free. They are paying heavy subsidies to vessels nominally for carrying mails, but there can be no doubt that the real object of the American Government in so subsidising a line of steamers is for the purpose of trade with New Zealand and the other colonies. The changed conditions by the establishment of the Commonwealth in Australia render it necessary, all-important, and advisable to amend the existing law, which, while giving power to reciprocate with the other colonies, does not extend to the Commonwealth. As to whether we can reciprocate with the Crown Colony of Fiji is also questionable : that it does not apply to Tonga, or the other islands in the Pacific, is beyond doubt. It would be to the advantage of the islands, as well as of this colony, if power were taken to reciprocate. Take, for instance, our trade with Fiji and adjacent islands, which has been steadily increasing; with greater facilities, with reduction in freights, and with a reciprocity treaty, greater expansion of trade would result. We are drawing largely from these islands in the way of sugar, fruits, and copra; while they are large consumers of flour, meats, biscuits, butter, and cheese. The same course of trade applies to Tonga, Niue, and the Cook Island Group. Some of the trade we had with Samoa and the Hawaiian Group will be prejudicially affected by the altered conditions now obtaining.