A.—s

520

found to be exceedingly unpopular amongst the mercantile and farming world and amongst all classes in our country, and we had to take it off. I take these figures given by Mr. Lloyd George for the purpose of my argument. No doubt they are perfectly correct; 20,000/. a year for a contribution to a fast mail service from New Zealand to London would be quite inadequate, and instead of 1 per cent. I am perfectly certain our Colony would have to make provision for a very much larger charge. I am not discussing the principle, but the working of it out from the point of view of what I can foresee would arise in New Zealand. Another thing why I do not like it — and this is the point which, since it was mentioned yesterday, has been passing through my mind from time to time. We have already in New Zealand imposed a higher duty against foreign importations than against British on certain articles, ranging from 20 per cent., and some articles are admitted free from England with a duty put against things from foreign countries on our free'list independent of that. We are anxious to turn the current of foreign trade to Great Britain and the Colonies. In this next session of Parliament. 4o which I am going back, we are submitting the revision of our customs tariff, and this policy will underlie our tariff to some extent. If we succeed in stopping the importation of goods from foreign countries who give us nothing in return for what we do now in the way of remission of duties, by treaties, or anything else, upon whom are we going to levy our 1 per cent, or whatever we decide to put on in the way of a surtax ? We are going to put it every time against the Britisher. The object Mr. Deakin has in view I am in sympathy with, and would sincerely like to be able to support him in this proposal, but it would, as it occurs to me, have an injurious effect, and as it struck me when first I heard the proposal here, I really do think it would tell against us in the advocacy of preferential trade with different portions of the British possessions in the future. I think we ought to have something definite if possible before we leave this Conference upon the important matters of inter-communication and other subjects T referred to, and T should like to hear the British Government say they are prepared to provide, say half a million of money as a contribution towards these matters, the Colonies in turn coming in with a fair proportion, the whole amount not to be put up unless we gave our fair proportion towards bringing about an Imperial and Colonial mail service, improved cable service, and so on. With all deference to those responsible for the outward traffic from England through the Suez Canal to the Colonies. T suggest it would be a good thing to have a bounty system or something of the kind, or a percentage of contribution to the steamers parrying cargoes. Tarn not suggesting anything in the matter of passengers because! think the practical side of getting our products through the Suez Canal is altogether of greater importance than anything else we can suggest Tf we could "give a tonnage contribution of some kind so as to make it nossibV for these tramp steamers to work with Australia and New Zealand through that canal a contribution by wav of bounty if you like—T think would be a very fine thing to do. Tf the British Government would say that in order to ensure a material reduction in the cost of cabling to Australia and New Zealand they would divert all their traffic to the Pacific cable for a period, provided it was done at a certain rate, and if the other companies would come down to the same rate, a division of the business could be given from the whole of us, and if a guarantee against loss to the shareholders in the Eastern Cable Company were given by the respective Governments, and of course to the Pacific Cable Company, who have guaranteed the money for the Pacific cable, you would be in a position to get low rates and be able to do an incalculable amount of good. I know Mr. Deakin's sincerity and earnestness in trying to bring about Imperial unity in the way he has advocated, and I am anxious to see

Fourteenth Day. 9 May 1907.

Imperial Surtax on Foreign Imports. (Sir Joseph Ward.)