A.—s

332

Sir JAMES MACKAY : Dear me, no, not in the Australian coasting trade —surely ? Sir WILLIAM LYNE : Yes, they are; the P. and 0. boats carry them. Sir JAMES MACKAY : The P. and O. steamers run from London and call at Fremantle and go on to Adelaide, Melbourne, and Sydney, possibly up to Brisbane. Sir WILLIAM LYNE : They do not go to Brisbane. Sir JAMES MACKAY : The P. and 0. are talking about going to Brisbane. Although they do call at Fremantle, Adelaide, Melbourne, and Sydney, that is only a continuation of their voyage from England. Sir WILLIAM LYNE : That -does not matter; under our arrangement they are in our coastal trade. Sir JAMES MACKAY : To that we can take no possible exception, but surely you cannot object to Indian sailors being employed on vessels making voyages from England or any other country to Brisbane, calling at Fremantle, Adelaide, Melbourne, and Sydney ? Sir WILLIAM LYNE : We do, if they compete in the coasting trade, which they do a great deal. Sir JAMES MACKAY : The interportal or coasting trade of Australia is, of course, a matter which it is entirely within your rights to deal with. Sir WILLIAM LYNE : They largely enter into the coasting trade. I do not want to be long in dealing with this question, and at this stage, after the announcement made by the Chancellor, perhaps it may be thought not worth while using any further arguments in favour of our cause, but I feel, and my excuse must be that I am completing my argument, that this is a question which will be read throughout the British Empire, and I hope, and I understand, that in the Blue Book which is to be issued, all that is said here and the arguments advanced will be found, so that everything that is submitted to the Conference will be for the use and information of every British Colony as well as Great Britain. I wish further to say that while Britain has decreased her exports to Australia by over two million pounds sterling during the last 20 years, Germany has, in direct exports alone, increased hers by 278 per cent., and the United States by 115 per cent., while if the goods actually made in these countries and exported via Great Britain be added, the figures would be even more impressive. All nations except Britain show an increase in their exports to Australia during the past 20 years. To digress a little, I interjected yesterday, or I think Mr. Deakin did, and I supported it, that there were vessels owned absolutely outside of Great Britain that were flying the British flag, and cutting trade between Great Britain and Australia, and that line to which I was referring was the White Star line. I had a deputation from shipping merchants between Great Britain and Australia who gave me the information that that line was seriously injuring the British trade and bringing from America, via Great Britain, exports to Australia at something like 15s. or 1/. less per ton than that at which they could be sent from Great Britain to Australia. Now, my Lord, I have, to demonstrate my arguments, a small chart which I desire to submit and have printed with the other documents, because I find that the best way, as a rule, to bring a matter before people to impress the effect.

Tenth Day. 2 May 1907.

Preferential Trade.