A.—s

452

Thirteenth Day. 8 May 1907.

Sir WILFRID LAURIER : Surely it was illegal ? Mr. LLOYD GEORGE : That was a question of duties I understand. Mr. DEAKIN : A question of payment for the privilege of trading at all, a question of heavy duties, and also restrictions as to the cargo they could obtain. It was a deliberate attempt to throttle trade, which succeeded to the extent that a vessel was driven back twice at the cost of many thousand pounds of trade. The Captain offered to pay the exceptional fee in order to be permitted to trade, and then was blocked again. It is a very strong case indeed. Mr. LLOYD GEORGE : I know the coasting trade of Germany is open to us. Mr. DEAKIN : They have not any coasting trade, to begin with, worth speaking of. Mr. LLOYD GEORGE : I am only dealing with your resolution which does not propose to hit a country which extends the same opportunities to us for what they are worth. The trade between Germany and her colonies is just as open to us as to German vessels. About the Marshall Islands Ido not know. lam told that they have admitted they were wrong in that case and have set it right. Mr. DEAKIN : But have paid no compensation yet. Mr. F. R. MOOR ; What is the position with regard to French regulations \ Mr. LLOYD GEORGE : France reserves its trade to Algeria, which is not, properly speaking, a colony, because, I believe, it has representation in the French Parliament. It is treated almost as if it were a French Department. Mr. DEAKIN : They treat all their Colonies nominally as Departments. Mr. LLOYD GEORGE : Not their oversea possessions, such as Madagascar, Senegal, and Tonquin. There we can trade without any restriction at all. Sir JAMES MACKAY : And Pondicherry. Mr. LLOYD GEORGE : Yes. Mr. DEAKIN : They give tariff advantages to their goods in their own Colonies, and also subsidies. Mr. LLOYD GEORGE : That is another point. It has hit French shipping much more than it has hit us. The whole system has been a ghastly failure, and the result is, that even Germany is now beating French shipping, although Germany has hardly any coast and consequently few sailors. France has native sailors, especially in some parts of her coast, and there is no reason why she should not be second to us, except for her very protective policy.

Coastwise Trade.