A.—s.

Thirteenth Day. 8 May 1907.

Mr. DEAKIN : I do not mean to discuss it now. Dr. JAMESON : It must go before the Chancellor of the Exchequer if the Imperial Government contributes. Mr. LLOYD GEORGE : It is altogether a Treasury matter, whether duty or equivalent contribution. Mr. DEAKIN : Yes. But the questions of better means of communication and transport are matters to which you have specially referred more than once, and this is the means of providing a joint fund out of which those means could be financed. Mr. LLOYD GEORGE : Have.you worked out roughly what it would come to. Mr. DEAKIN : I have some figures here, but they are not material. If preferential trade is ruled out, and the resolution we have passed practically disposes of it as far as this Conference is concerned, we are left in the void. We have now to look for additional means towards the same end. Mr. LLOYD GEORGE: By way of elucidating it, not by way of debating it, what does " equivalent contribution " mean j For instance, take this case. Our imports from foreign countries are over 400,000,0002. or something of that sort. Does that mean that we are to contribute at the rate of one per cent, on the merchandise imported into this Kingdom ? Mr. DEAKIN : The proposal is that you should either levy a duty of one per cent., or whatever percentage you agree upon; or contribute the same amount from any other source. Mr. LLOYD GEORGE : Do you mean contribute on the 400,000,000 Z. I Mr. DEAKIN : How otherwise could you measure equality of contribution ? Mr. LLOYD GEORGE : It is hardly what I call an equality of contribution. Dr. Jameson would contribute about 100,0002., and we 4,000,0002. That is not what I call equality, quite. Mr. DEAKIN : It is if you look to the fact that you decide how your 4,000,0002. is to be spent. Mr. LLOYD GEORGE : We get an equivalent for it ? Mr. DEAKIN :Yes, you may offer its equivalent. Mr. LLOYD GEORGE : But you will not give us 40 votes to Dr. Jameson's one —I am not suggesting that. Mr DEAKIN : The proposal here is that you should practically control the expenditure of your 4,000,0002., and we of our 400,0002., or whatever it is. Mr LLOYD GEORGE : It is premature to discuss it now. I only want to know what amount we are to contribute. Supposing we had a sort of

Imperial Surtax on Foreign Imports.

444