A. 5

314

Tenth Day. 2 May 1907.

deliberation and further consideration, would be done in a different way, or not allowed to pass. I accept in full that general explanation, but still this is the only formulated tariff which has yet been presented to us on behalf of the Australian Commonwealth. Ido not know, and nobody knows —not even Mr. Deakin, unless he is endowed with that dangerous gift of prophecy —what substitute for this, if any, will hereafter be produced. But I take it as it stands, and examine it as it stands, as it has received the assent of both Houses of the Australian Legislature. It was submitted to the Governor, and because it was supposed to conflict in some respects with some of our treaty obligations he was bound to reserve it for His Majesty's pleasure. Here it is, and if it does not fully represent their considered opinion, being a little hurried at the end, as I say, yet it is the only attempt to put down in black and white so far as I know what the Australian Commonwealth is prepared to offer to this country in the way of preference. Mr. DEAKIN : As an accompaniment, remember, to the New Zealand treaty, and only as an accompaniment, We did not deal with general preference at all. Mr. ASQUITH : But this is the only thing we have. Mr. DEAKIN : Yes. Mr. ASQUITH : I will deal with it as it stands and see what it amounts to. I should note in passing, though it is familar to all members of the Conference, that the Australian tariff, like the New Zealand one, is not what we call a preferential tariff in the ordinary sense of the word; that is to say, no duty is lowered on British goods, which remain at what they T were, but the so-called preference consists in imposing an additional higher duty on foreign goods of the same class. That is the method adopted. Sir WILLIAM LY r NE : But we start with a lower scale of duty than others. Mr. ASQUITH : Than whom ? Sir WILLIAM LYNE : Than Canada, and, I think, New Zealand too. Mr. ASQUITH : I daresay. That is not the point 1 was making. I say your method is to take the existing scale and build a higher brick on to the wall for the foreigner, whereas the Canadian method is to take a brick out, which is the opposite method. lam not comparing them. The whole of this Australian tariff is subject to the condition that it is only applicable to British goods imported in British ships, which was the proposal of the Government, I understaml, and to which the legislature added " manned by white labour." That condition in itself is a condition which curtails and cuts down, quite apart from all questions of policy, which I need not go into, the actual ambit of the supposed preference very considerably indeed. I was going to say it was a condition which renders it very nearly nugatory; but certainly, in regard to a very large proportion of our trade, it is a condition which is quite impossible to realise. I shall not go into the political question which is raised by the addition of the words "manned by white labour," becausethat is not for us to consider just now. Mr. DEAKIN : As a matter of fact, the only line of steamers it would affect would be the P. and 0. Company, who carry a relatively small propor-

Preferential Trade. (Mr. Asquith.)