303

A—s

Dr. SMARTT : Do they take manufactured goods ? Sir JAMES MACK AY : They take what they require. Mr. F. R. MOOR : Raw materials. Sir JAMES MACKAY : They buy what they want. The prosperity of a country's trade does not depend on her selling as much to any particular country as she may buy from it. Her balances must be adjusted in the general trade of the universe. As London is the great clearing-house of the world for money and credit, so India is one of the international clearinghouses for commodities. Any measure which disturbs the natural course of her trade as it now exists, must reflect unfavourably not on trade of India alone, but on that e)f the whole of the British Empire. As Mr. Deakin said in his opening remarks, the interchange of trade only takes place where there is mutual advantage. The benefit cannot be wholly on the one side or the other. To borrow a metaphor much favoured by the Mussulman, no single country can drink up all the water in the sea. We believe that any interference with the unrestricted flow of trade in this country, such as would be caused by the establishment of a general tariff, with all its concomitant customs examinations, appraisements, delays, and expense, would have the effect of materially diminishing the volume of the foreign trade of those islands, and of the trade of the Empire. We believe also that discrimination by Great Britain or India against foreign countries who are India's best customers would be prejudicial to India's trade. It is on these grounds that we take strong and decided objection to a change in the fiscal system either of this country, or of India. In view of the advantages derived by the Empire as a whole from the possession of India, we suggest that any preference which the self-governing dominions of His Majesty may, in their wisdom, decide to grant to the Mother Country might reasonably be extended to the produce and manufactures of India, and that Great Britain and India should be regarded as one. I would ask Mr. Me>or, if 1 might say so, to remember that our great Indian de-pendency is a heritage not solely of the people of these islands. It has come down with all its responsibilities from our common forefathers to the whole British race, and its possession and prosperity are a justifiable source of pride to the inhabitants, not of Great Britain alone, but also to their brethren beyond the seas. Mr. F. R. MOOR : Might 1 say with regard to that surtax by the Russians on your tea, I did not quite catch what you said about it. It has not affected your trade with Russia ? Sir JAMES MACKAY : In spite of that tax our trade with Russia in Indian and Ceylon tea has largely increased. Mr. F. R. MOOR : Who is paying that surtax, Russia? Sir JAMES MACKAY : The Russian consumer, although he has to pay a little more for his tea, he has not ceaseel drinking either Indian or Ceylon descriptions. Mr. F. R. MOOR : He is drinking your tea. Sir JAMES MACKAY : He is drinking three times as much Ceylon tea, and about eight times as much Indian, as he did a few years ago.

Tenth Day. 2 May 1907.

Preferential Trade.