37

A.—6a

The problem of markets appears to me to fall into three divisions. The first one is the making effective of the preference already existing. If that can be done, I venture to say we have probably solved the: Murray River problem ; but that is a matter for the British Gove;rnme;nt and not for us. We have tried to put our case in such a way as to show that this scheme would mean a great stride in Empire development; that it woulel mean a very greatly increase;d purchasing-power in Australia for British manufactures ; and that we: are not asking to have the preference increased me:rely to assist Australia in its trouble;. We: are: not in tremble. We shall get out of our difficulties perfectly well, but we, must realize that if we do not get preference;, which we be;lieve will be of value to Britain, we shall have to develop rather more slowly, and the improvement in our position as purchasers of British goods will be elelayed for a considerable time. With, regard to preference, there is a specific item on the Agenda. Of course, that will be the appropriate time to de:al with the question. The Chairman : I would say at once, as I said at an earlier stage of the Conference in reply to Mr. Massey, that as soon as we open that 1 will tender quite: definite proposals on the subject. Mr. Bruce : I need hardly say that I am extremely glad to hear it. Preference in Public Contracts. The second point concerns preferences in Government contracts. This is not so big a question, but it is one; of very considerable importance: to the Dominions generally. On this question the Dominions possibly take: a view which might well be considered a little extreme, but they have a very real feeling in the matter. They feel that whe:re it is a question of Government contracts the Dominions shoulel be entitled to get them, unless the; difference in price is so hopeless as to render it impossible: ; but they think that there: shoulel bo a very ge;nerous margin alloweel in order to give the Dominions the fullest opportunity of tendering successfully. Our eiistances from your markets shoulel also be remembered, so that there shoulel not be too short a perioei for lodging tenders. I should point out that there is in Australia a very strong feeling on the: question of preference. Australia sent a great number of her sems overseas ; she lost sixty thousand of them. In the war we all fought together, and there certainly it? a sentiment in Australia about this particular question. I am. merely mentioning this because it is a feature of the; national point of view, which one certainly shoulel bring under notice. Marketing of Domniion Foodstuffs and Agricultural Raw Materials. The: other problem which we have to consider is, of course, a difficult one, anel I think-it should be- stated in this way : that in order to assist, the settlement of British migrants in the Dominions and thus relieve unemployment in Great Britain, and in order to increase the volume of Imperial trade anil the purchasing-power of the Dominions for British gooels, Britain should bo prepared to assist in some way in the marketing of Dominion foodstuffs and agricultural raw materials. 1. particularly mention foodstuffs and agricultural raw materials for this reason : that these things are what the Dominions proeluoe, and it is their proeiuction which will bring about the development of the- Dominions. It is no good our passing pious resolutions in favour of better preference to the: Dominions anil ever dodging the groat issue. The issue is there, and it is not the slightest use: our trying to avoid it. We must see if there is any way of getting over the difficulties involved, because of the fact that those: are the things the Dominions must have a market for if they are to expand and develop. 1 quite appreciate that at this stage I might very well leave the: matter, having said that we cannot develop without markets ; that these are the things we want markets for, and that we would like a duty put upon them, with a preference to the Dominions. I am rather apprehensive that if I say anything more I shall be; accuse:d of interfering in other people's affairs, but wo have to remember that this is a Conference to which we have all come on an absolute equality, and we have only one object in view, and that is to try to promote the prosperity of the British Empire as a whole. Having come here in that spirit I think it is our duty to state the position as we see it, and to see whether from anything we may say some crumb of wisdom may fall which it would be possible to take up, and which might conceivably help to solve the problems we are faced with. I do not propose, therefore, to leave the matter exactly where it is, but to say a little more, and 1 intend, if I may, to look at the whole position facing us at the present moment in regard to foodstuffs and agricultural raw materials generally. I again want to stress the point that I am doing this only in a spirit of trying to help, if possible, in the solution of this extraordinarily difficult problem. British and Dominion Farmers faced by Common Problem. In approaching the question certain facts must be remembered. The agricultural producers in Britain and in the Dominions complain that on much of their produce they receive too small a return to cover the cost of production. On the other hand, the British consumer complains that the retail price he has to pay restricts his consumption and involves great hardship during the present time of depression. During my voyage from Australia I studied with very great interest the reports of the Departmental Committee of the Board of Agriculture on the Prices of Agricultural Products which was presided over by the Marquess of Linlithgow. It appears that this Committee in its reports largely confirms the complaints of both producer and consumer. The reports show that distribution charges are very high. It appears to me that the requests which the Dominions are making under this head harmonize with the demands of the British farmer, who has been forced to make representations to the British Government for some definite assurance of stable markets for agricultural produce.