her us with offers of mutual concessions, it is
only a question of time, and the same chance will be given to others,
who will not refuse to avail themselves of it.

You see the beginning of the process already in such an event as the
newly-concluded commercial treaty between Canada and France. If we
choose, it is still possible for us not only to secure the preference
we have in Colonial markets, but to increase it. But if we do nothing,
commercial arrangements with other nations who are more far-sighted
will gradually whittle that preference away. To my mind the action of
Canada in the matter of that treaty, perfectly legitimate and natural
though it be, is much more ominous and full of warning to us than the
new Australian Tariff, about which such an unjustifiable outcry has
been made. Rates of duty can be lowered as easily as they can be
raised, but the principle of preference once abandoned would be very
difficult to revive. I am sorry that the Australians have found it
necessary in their own interests to raise their duties, but I would
rather see any of the British Dominions raise its duties and still
give a preference to British goods than lower its duties and take away
that preference. Whatever duties may be imposed by Canada, Australia,
or the other British Dominions, they will still remain great
importers, and with the vast expansion in front of them their imports
are bound to increase. They will still be excellent customers, and the
point is that they should be our customers.

In the case of Australia the actual extent of the preference accorded
to British goods under the new tariff is not, as has been represented,
of small value to us. It is of considerable value. But what is of far
more importance is the fact that Australia continues to adhere to the
principle of Preference. Moreover, Australia, following the example of
Canada, has established an extensive free list for the benefit of this
country. Let nobody say after this that Australia shows no family
feeling. I for one am grateful to Australia, and I am grateful to that
great Australian statesman, Mr. Deakin, for the way in which, in the
teeth of discouragement from us, he has still persisted in making the
principle of preferential trade within the Empire an essential feature
of the Australian Tariff.

Preference is vital to the future growth of British trade, but it is
not only trade which is affected by it. The idea which lies at the
root of it is