A.—s

being brought up when our ships get to Honolulu, and then not allowed to go on to trade with America. We had to withdraw a steamer for which we were paying a subsidy for carriage of passengers and mails between New Zealand and England via America. After 1902 the effect of this resolution was put into a statute in our country, and we are carrying it out. Mr. DEAKIN : Part of it: Sir JOSEPH WARD : A part of it. Mr. DEAKIN : This is general, and relates to the United Kingdom and the Colonies. Sir JOSEPH WARD : We had a considerable amount of discussion at the Navigation Conference upon the very wide and difficult subject of controlling ships after leaving England, and before coming into our waters. We came to the conclusion that we could not interfere in any way whatever. We went on to suggest in the resolution there, which will come up for consideration of the various Governments later, and I think we all supported it, that such portions of the resolution passed there which either required legislation in our countries or elsewhere for bringing them into effect the respective Governments should take into consideration, with a view of giving effect to them. lam in most cordial agreement with Mr. Deakin in this, and support it very heartily upon the principle that we do not want to see injustice done to British shipping upon our coast when we have at least one great competitor, which has put into operation a very extended interpretation of coastwise law, which does not allow our ships to engage in trade on the Pacific Ocean from Honolulu to San Francisco. We are all the more anxious to see the system, so far as it can be put into operation, generally applied to any other portions of the Empire. Mr. LLOYD GEORGE : The only part of the resolution which really comes within the purview of the Imperial Conference is that which deals with the trade between the Mother Country and its Colonies and Possessions and between one Colony and Possession and another. The question of our coasting trade is a matter entirely for the British Parliament. Now I will just put the two or three considerations which occur to us which tend to make it unadvisable in my judgment that we should accept this resolution. It looks at first sight very simple and clear, with nothing but advantage to us, but on detailed consideration it will be seen to be otherwise. Mr. DEAKIN : The resolution only says that it is desirable that the attention of the British Government and the Colonies should be called to the matter. Mr. LLOYD GEORGE : " And to the advisability of refusing the privileges of coastwise trade." Mr. DEAKIN : Yes, to call attention to the advisability. Mr. LLOYD GEORGE : It really means a recommendation, if it means anything at all, because; I take it, our attention has been called to it by the Imperial Conference in 1902. The suggestion contained in the resolution would certainly not meet with approval on our part—namely, that we

Thirteenth Day. 8 May 1907.

Coastwise Trade. (Sir Joseph Ward.)

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