A.—s

348

increased the amount of their supplies to that country; and the same principles might apply to corn. Now, the Chancellor of the Exchequer stated that Great Britain was retaining her predominance in the markets of the world, and he gave us ligures to show that the imports and exports during the last 50 or 60 years (i did not take a note of his figures) had materially increased, and that the proportion of those imports and exports had practically remained upon the same basis. That is true. But have not the imports and exports of other countries that, 50 years ago, had practically no manufactures at all, increased in a much greater proportion than the imports and exports of Great Britain ( I think it only right, Lord Elgin, here, in the interest of British manufacturers as well as of the British Lmpire, to make a statement which can be substantiated by facts; viz., that we in the Colonies do not feel that Great Britain is retaining her predominance in manufacturing goods as she did in the past. At the present moment the Colony of the Cape of Good Hope, to secure their rolling stock and railway material from the manufacturers of Great Britain, is obliged to instruct her Agent-General to give 10 per cent, preference to the manufacturers within the Empire; and 1 ask you, Lord Elgin, or 1 ask anybody, if that is not an advantage to the British manufacturers, and if it is also not an advantage to the British workman who turns out- the things which the manufacturer supplies '. Some short time ago, we ordered a million and a quarter pounds' worth of rolling stock. It may be a small order, but on that million and a quarter pounds' worth of rolling stock, we were prepared to back our opinions by paying 125,000/. extra to purchase it within Great Britain, and I say unhesitatingly, that had we refused to pay extra, that order would have gone to a Continental nation, and gone to a nation which was Britain's greatest trade rival. Surely we must acknowledge that every order of that sort that does go to a rival of Great Britain allows that country still further to protect her means of manufacture and allows her still further to improve her naval power and everything that appertains to assisting and protecting her trade. There is another matter I might mention with regard to the predominance of British manufactures. I think if I were to go to Manchester and discuss matters with the Manchester print manufacturers, if they were honest they would recognise that during the last 10 or 15 years, owing to the admirable commercial and technical training that the German people are receiving, Manchester at the present moment has an enormous competitor, especially in her prints and things of that sort, owing tc the magnificent commercial training that the workmen of Germany are receiving, and Germany is thus securing a great hold in these articles m the markets of the world and in the markets of the British Colonies; and were it not the case that in the Cape Colony we give 25 per cent, preference in our tariff on manufactures of that character, Germany would more and more supplant Manchester in supplying those goods which are so largely used by the people of the country and form one of the great staples of dress of the native population. I see that Mr. Lloyd George perhaps does not agree with me. Mr. LLOYD GEORGE : No. Dr. SMARTT : Well, I know that if you would get a return of the amount of print and art things of that sort that arc entering the Cape Colony, you would be surprised to find how, by degrees, Germany is securing a market which was formerly held by the British manufacturers. Mr. LLOYD GEORGE : Cotton fabrics?

Tenth Day. 2 May 1907.

KKNTIAL Tra - (Dr. Smartt.)