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risen from 116,000,000/. to 367,000,000/., and the proportions were to foreign countries 67-2; to British possessions 32-8 per cent. So the change has been from 68-4 to 67-2 as regards foreign countries, and from 31-6 to 32-8 as regards British possessions. There, again, allowing for some temporary fluctuation —as, for instance, during the South African war, when the exports to a particular quarter were accidentally swollen by special and transient circumstances —you will find, if you look through the whole period, that the proportions are practically constant. So that, both as regards our import and our export trade, we stand very much as we were—though the volume has very much increased —as regards the proportions which are respectively sent to the Empire and outside it, I am going to inquire how preference would work out practically, if we adopted your suggestion, but before I do that, let me say a word or two in reference to these tariffs to which attention has been called, and very properly called, as I think. One of the great advantages at a meeting like' this is that we can examine these things much more closely, with the advantage of firsthand knowledge, than otherwise would be the case. We have four tariffs in which preference, or what is called preference, is given or proposed to be given to the United Kingdom. I will not say more than a sentence about those of South Africa and New Zealand. As regards South Africa, I think it is a very liberal tariff to us. Ido not pass any criticism upon it; on the contrary, it includes the great bulk of British exports into that country. But it has been in operation a very short time. The circumstances of South Africa during that time have been to some extent exceptional, and I think it is too early yet, as probably Dr. Jameson will agree, to judge what the ultimate effect of that tariff is likely to be. Dr. JAMESON : Yes. Mr. ASQUITH : So far, I do not think you can say it has produced much effect one way or the other, but I say that entirely without prejudice to future developments. Now, I will pass to New Zealand. Here may I say, in passing, how very much indebted my right honourable colleague and myself are to Sir Joseph Ward for the speech he made yesterday. I think he gave us a great deal of most valuable and suggestive information upon a great number of points, and, if I may venture to say so, a most admirable contribution to our discussion. The New Zealand preference, as Sir Joseph Ward knows, is only with regard tei 20 per cent, at present of the whole British imports to New Zealand. In other words, four fifths of our imports are left entirely unaffected by it, and it takes the form, not strictly of a preference, that is to say, of a reduced duty <>-iven to British produce,'but the form of an increased duty imposed upon foreign goods. That, I think, is the effect of that tariff. There, again, it has only been in operation for a very short time, and I do not think it is possible to say what its ultimate effect is likely to be, but I do point out that it covers a very small part—only one-fifth—of the whole area of British exportation to New Zealand. I have no doubt, knowing what the fiscal views of the New Zealand statesmen are, it is contrived in such a way that it does not allow serious competition with any native industry there. I would rather refer at a little more length to the other two tariffs which have been brought before us—the Canadian tariff and the proposed Australian tariff \s regards the Canadian tariff, I acknowledge that it has been beneficial to British trade, and particularly, I think, to our textile industries I think it has been beneficial perhaps more in the way of arresting a threatened decline in trade than by actually increasing the volume of the trade or at any rate the proportion of British trade to the rest of the trade done with Canada. But I should like to call attention, not in any contro-

Tenth Day. 2 May 1907.

Preferential Trade. (Mr. Asquith.)