387

A.—s

preferential tariff has produced a marked effect on our export trade to Canada. It is true that it seems to have benefited Canada even to a larger extent than it has profited us, for I observe from our Trade Returns that our purchases from the Canadian producer have increased, and are still increasing by leaps and bounds, with one or two set backs, and I attribute the great improvement in the trade between Canada and this country very largely to the wise policy of reducing the duties on goods imported from the Mother Country which Sir Wilfrid Laurier initiated in 1897. It has undoubtedly stimulated trade between the two countries. The South African and the New Zealand preferential tariffs have not yet been put to the test by much actual'experience; but I cannot for a moment doubt that in some measure the happy results which have ensued from Canadian preference will be repeated in these cases. The same observation of course applies to Australia; and Great Britain feels, and ought to feel, grateful, not merely for the actual concessions which have been proposed, but even more for the 1 spirit of comradeship—and I think I may even say of affection—which has inspired this new policy. But it is said, it is not enough that you should ewprcss your gratitude. The question is, what are you prepared to do in return '. I know this has not been put in this form by the Colonies. There is something in Dr. Jameson's resolution which looks perilously like it, but I am sure that the Colonies would not wish to present their case in that form, as they know it would detract from the real value of their action and certainly from its*spontaneity. It has been so put by others, and we are bound to take note of it. My first answer would be that Great Britain is the best customer the Colonies have for their products. In the last year for which cennplete information is available the exports from the Self-Governing Colonies to all foreign countries amounted to million pounds, whilst the exports to the United Kingdom amounted to 93 million pounds, or, excluding bullion ami specie, to 66 million pounds. But I should also observe that it is certainly to our mutual advantage that everything within reason should be done to promote commercial intercourse between Britain and the Colonies, and I should be exceedingly sorry if this Conference parted without devoting itself to a careful consideration of every suggestion which has been made for the purpose of developing inter-Imperial commerce. One danger of giving undue prominence to a controvertible suggestion for arriving at a particular end, is that the controversy about that suggestion tends to obscure all other proposals for attaining the same end. Nations which have been accustomed to self-government are apt to attach exaggerated importance to the controversy of the moment. That is our danger just now. lam afraid the question of preferential tariffs looms so large on the political horizon that its friends may lose their sense of proportion, and think that every alternative proposition is too insignificant to waste time and thought upon. lam glad to think that Mr. Deakin does not think so. Mr. DEAKIN : No, preferential tariffs are only part of the policy of preferential trade. Mr. LLOYD GEORGE : I am glad to hear that, but may I appeal to the members of the Conference before they separate to devote some part of their deliberations to the examination of other proposals which have been made for the development of Imperial trade? If they fail to do so, in my humble judgment, opportunities may be lost which may not soon recur. I have an idea of what may be passing in my friends' minds on this point, though they are too courteous to express it at this Conference. They have been assured that Colonial preference is much nearer than we seem to imagine. I know they have been told that the electors have repented of the hasty verdict which they delivered so emphatically eighteen months ago, and that when the opportunity recurs for them to reconsider their decision, it will be

Eleventh Day. ii May 1907.

Preferential Trade. (Mr. Lloyd George)