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Also present < The Right Honourable D. Lloyd George, M.P., President of the Board of Trade. Mr. H. Llewellyn Smith, C.8., Permanent Secretary to the Board of Trade. Mr. A. Wilson Fox, C.8., Comptroller-General of the Commercial, Statistical, and Labour Departments of the Board of Trade. Mr. G. J. Stanley, C.M.G., of the Board of Trade. Mr. Algernon Law, of the Foreign Office. The Right Honourable The Lord Tweedmouth, First Lord of the Admiralty. The Right Honourable E. Robertson, M.P., Parliamentary Secretary to the Admiralty. . Captain Ottley, M.V.0., R.N., Director of Naval Intelligence. Mr. W. Graham Greene, C.8., Assistant Secretary to the Admiralty Sir W. S. Robson, K.C., Solicitor-General.

IMPERIAL SURTAX ON FOREIGN IMPORTS. CHAIRMAN : We begin with the Treaty question. Mr. DEAKIN : Lord Elgin and gentlemen, if I may, I would like to hand in a draft embodying the general proposal which I have twice suggested for the consideration of the Conference. This I have now shaped, I think, into a more intelligible form, so that before we leave trade questions we might have an opportunity of seeing whether any co-operation is possible in this direction. I will read it: " This Conference recommends that in order " to provide funds for developing trade, commerce, the means of communica- " tion, and those of transport within the Empire, a duty of one per cent, upon " all foreign imports shall be levied, or an equivalent contribution be made "by each of its Legislatures. After consultations between their representa- " fives in conference, the common fund shall be devoted to co-operative pro- " jects approved by the Legislatures affected, with the general purpose of " fostering the industrial affairs of the Empire so as to promote its growth " and unity." The one per cent, is fixed merely as a basis to start from, and the suggestion of an equivalent contribution made by each of the Legislatures would, I hope, meet Sir Wilfrid Laurier's objection. The plain provision that this fund is to be devoted to co-operative purposes approved by the Legislatures affected, preserves in the amplest way their powers of self-government and their control of this fund. If adopted, this woulo provide a means of co-operation in respect of the expenditure of the fund thus created. I will now circulate it. CHAIRMAN : You do not propose to discuss it. Mr. DEAKIN : Yes, I have asked for this twice before. CFf AIRMAN : We cannot possibly discuss it at this moment, because it must go before the Chancellor of the Exchequer. Mr. LLOYD GEORGE : It is a Treasury matter.

Thirteenth Day. 8 May 1907.

Imperial Surtax on Foreign Imports.

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