A.—s

414

Twelfth Day. 7 May 1907.

tariff for general purposes and a preferential tariff. Between the preferential tariff and the general tariff we have now an intermediate tariff. The object of this intermediate tariff is to enter into negotiations with other communities to have trade arrangements with them. It has been supposed that this was to hit our American neighbours. With our American neighbours we should be only too glad to trade on a better footing than at the present time. We are next door neighbours, and in many things we can be their best market, as in many things they can be our best market. We should be glad to trade with them; but it never was intended, nor thought at the time, that this intermediate tariff could apply to the United States. There was at one time wanted reciprocity with them, but our efforts and our offers were negatived and put aside, and we have said good-bye to that trade., and we have put all our hopes upon the British trade now. But there are other nations —France is one and Italy another, with which we could have bettei trade than at the present time. France has a minimum tariff' and we are prepared to exchange our intermediate tariff, if they will exchange their minimum tariff with us. But while giving this intermediate preference, we maintain the system of lower tariff to the Mother Country, and to all our fellow British subjects all over the world. Dr. Jameson made the point that if we were to enter into such an agreement with foreign nations, we would debar the possibility of giving a preference to the Mother Country. Nothing of this kind. Our tariff is not so constructed, and cannot be so held. If we were to make an agreement with France, which I doubt whether we could, France would understand the position; she would take our intermediate tariff knowing at the same time there was a lower differential tariff under all circumstances for the Mother Country and the British Dominions. Mr. F. R. MOOR : I am sorry to interrupt, but I would like the Premier of Canada to assure us on this point. By that amount which you reduce it to any other foreign power, you reduce your preference with the Home Land. Mr. DEAKIN : And with us. Sir WILFRID LAURIER : I do not admit that we would reduce it, it would remain as it is; but the man who trades with us in Great Britain knows that he may have a competitor not upon the same lines, but upon reduced lines from our general tariff. Mr. ASQUITH : He may have a competitor on the line of the intermediate tariff, if, for instance, you came to an arrangement with France. Sir WILFRID LAURIER : That is to say, instead of having a margin of 334 per cgnt., he may have a margin of only 25 per cent. It makes that difference, no doubt. Mr. ASQUITH : But it cannot alter the quantum of preference. Sir WILFRID LAURIER: No, it cannot alter the quantum of preference. Dr. SMARTT : Your tariff is now per cent. If you introduce an intermediate tariff, the preference in favour of Great Britain or the other British Colonies that might reciprocate with you would not be but would be reduced.

Preferential Trade. (Sir Wilfrid Laurier.)