Chart showing the Average Annual Values, in Periods of five Years, of the Imports into Australia from (i) the United Kingdom, (ii) the United States, and (iii) Germany.

The import duties levied by the South African Customs Union, which comprises Cape Colony, Natal, Orange River Colony, Transvaal (including Swaziland), Basutoland, Bechuanaland Protectorate, Southern and Northern Rhodesia, are * upon 'cotton goods, such as blankets, rugs, and sheets, commonly 'used as blankets or rugs, singly, in pairs, or in the piece,' 25 per cent. ad valorem ; and upon all other cotton tissues,'. 10 per cent. ad valorem, subject to a rebate of one-fourth of the duty when the goods are the produce of the United Kingdom or the Dominion of Canada. The rebate has been allowed under the South African Customs Union Convention of 1903, which came into force on August 15, 1903, and extends to all imports manufactured in the United Kingdom.

The import duties upon woollen and worsted manufactures levied by the Customs Union are *upon blankets, rugs, shawls, and sheets and manufactures of wool commonly used as blankets or rugs, singly, in pairs, or in the piece' . . . 25 per cent. ad

*See p. 15 of Cd. 2627 for duties on cotton goods; p. 30 for duties upon woollens and worsteds; and pp. 44, 45 for duties upon iron and steel.

valorem. Upon all other woollen or worsted tissues' 10 per cent. ad valorem. The duties upon iron and steel goods are lighter,* ranging from 24 per cent. (in which case a rebate equal to the duty is allowed) to 12 per cent. ad valorem.

The following table shows that the exports of the produce and manufactures of the United Kingdom to Cape Colony and Natal, which contain the only ports of entry in British South Africa, are not increasing.

See pp. 354, 356 of Annual Statement of Trade for 1905'; and p. 150 of Trade and Navigation Accounts, January 1907.'

New Zealand grants preference' to the United Kingdom by increasing the taxation of dutiable goods imported from foreign countries by from 20 per cent. to 50 per cent. ad valorem, under the New Zealand' Preferential and Reciprocal Trade Act, 'No, 78, of 1903,' which came into force on November 16, 1903. The import duties payable on entering the ports of New Zealand are upon cotton goods, mainly from 10 per cent. to 25 per cent. ad valorem; upon woollen and worsted manufactures, 20 per cent. ad valorem; and upon iron and steel goods, mainly from 5 per cent. to 25 per cent. ad valorem.† Although we have only referred to the duties upon the three chief classes of exports from the United Kingdom, in the cases of Australia, British South Africa, and New Zealand, it must not be inferred that other exports are not as heavily taxed. Any doubts upon the subject will at once be dispelled by a reference to the volume of over five hundred pages, filled with the divisions and subdivisions of the import duties levied by our colonies. But space will not permit further reference to the duties that hamper British industry and colonial development.

*See p. 15 of Cd. 2627 for duties on cotton goods; p. 30 for duties upon woollens and worsteds; and pp. 44, 45 for duties upon iron and steel.

† For duties on cottons see p. 14; on woollens and worsteds see p. 30; and upon iron and steel goods, see pp. 41 to 43 of Cd. 2627.

VOL. CCV. NO. CCCCXX.

D D

The following table gives the values of the exports of British produce and manufactures to New Zealand.

In the preliminary skirmish in the House of Commons, by which the tariff reformers heralded the approach of the conference, Mr. Hills maintained that advantages would accrue to us from a reduction of taxation on colonial goods, and Mr. Balfour said the colonies were not calling upon us to add largely to the list of articles liable to duty. Their demand was that an attempt should be made to establish Imperial preference with the fiscal system we now had.

In view of this statement by Mr. Balfour, it is interesting to consider the two tables following, the first of which gives the values of the dutiable imports of merchandise into the United Kingdom from foreign countries and from British colonies, &c.

* See p. 3 of the Annual Statement of Trade of the United Kingdom,' vol. i. [Cd. 2928].

The above table shows that the dutiable imports from British colonies are, on an average, about one-third of the value of those from foreign countries. When, however, the values of the dutiable imports taken from the various colonies which grant a preference to the United Kingdom are distinguished-as in the next table-it will be seen that the relief to be gained by

*See p. 420 of 'Annual Statement of Trade, 1905'; and p. 151 of Trade and Navigation Returns, January 1907.'

such colonies, even by an entire remission of the import duties they now pay to the United Kingdom. would be of infinitely small proportions.

Table showing the Average Annual Values (for the period 1900 to 1905) of the Imports of Dutiable Goods from the British Colonies and Possessions.*

CANADA.

1. Sugar, glucose.

1

2. Rum

8

2. Sugar (unrefined)

3. Rum

Total

154

4. Coffee

48

AUSTRALIA. 1. Wine

2. Brandy

5. Spirits (sweetened)

6. Molasses.

7. Cigars

125

5

Total

Total

130

BRITISH GUIANA.

1. Sugar (unrefined)

227

CAPE COLONY.†

2. Rum

155

1. Tobacco .

15

3. Cocoa (raw)

2

4. Molasses.

2

*For the values for each of the six years, 1900 to 1905, see vols. ii. of the 'Annual Statements of Trade with the United Kingdom for 1900 and 1905.

† From p. 411 of vol. 1 of Cd. 2928 the annual average value of

The above table contains all the heads of dutiable imports into this country from British Colonies that are enumerated in the lists of principal imports given in the Annual Statements of 'Trade with the United Kingdom.' The table shows that the average annual value from 1900 to 1905 of the total dutiable imports taken from Canada was only 23,000l. The import duties upon the 15,000l. worth of glucose and 8,000l. worth of rum are the only duties that would be dealt with-as Mr. Balfour suggests the colonies demand-affecting Canada under our present fiscal system. Similarly, the wine and brandy supplied by Australia, which the table shows to have amounted to an average annual value of 130,000l. between 1900 and 1905, would be the only two items upon which a remission of the present import duties would affect the Commonwealth. The tobacco from Cape Colony, valued at an average of 15,000l., would be the only item upon which the Cape would be affected, and the raw coffee, valued at 14,000l., imported from Natal, would be the only item affecting that colony. Thus the total average annual values of the dutiable goods taken from the colonies that already grant us, or are ready (as Australia is) to grant us 'preference,' amount to only 182,000l., out of the total average annual value of about 11,300,000l.

The remainder of the table shews where a real benefit would be enjoyed by British possessions being granted preferential treatment under our present fiscal system. The average annual value of the dutiable imports into the United Kingdom from British India is nearly six millions, and from Ceylon nearly three and a half millions; while the dutiable imports taken from the West Indies are valued at 1,199,000l., and from British Guiana at 386,000l., or more than twice the total value (182,000l.) of the dutiable imports from the colonies granting us preferential treatment !

It is strange that New Zealand should urge the necessity of the United Kingdom' conceding a preference to colonial products 'that we tax under our existing system,' since that exceedingly prosperous and loyal colony does not herself send us any goods subject to British import duties! We sincerely trust that the result of the discussions that may take place between the Colonial Premiers and our own ministers may be of a character to strengthen their mutual regard and esteem for one another, and that in other directions than an infringement of our present system some mutually satisfactory solution of many pressing questions may be evolved.

wine imported from 1901 to 1905 is seen to be: from British South Africa, 3,900.; from the Channel Islands, 6,4007.; from Cyprus, 1,6007.; and from other British possessions, 4,8007.