principle, subject to the ,,Minimum" French Metropolitan Tariff, excepting sugar and products derived therefrom, the importation of which are subject to the same special rates as the importation of sugar, &c., from the first group of French colonial possessions. || [Special rules are, amongst others, laid down in France regarding the duties and exemptions from duties for goods of foreign origin, and for products of the French Colonies and possessions themselves, when the same are imported into one of such Colonies or possessions from another, regarding the interpretation to be given to the term "direct" importation, &c.] || 7. It is not possible for me at this moment to give any particulars regarding the customs régime in force between the Netherlands and the Colonial possessions of that country, but it would not be difficult to obtain such information within a short time if desired. || 8. The argument used at present in Germany amongst competent persons in defence of the action of the German Government in subjecting Canadian products to the rates of duty of the German General Tariff is (as I understand it) that Canada, having as regards its customs policy taken up the position and reponsibilities of an independent State, has now to be treated as such by Germany; that Canada has granted a reduction in the rate of duty to goods imported from the United Kingdom and to certain British Colonies, and that thus Germany is now no longer treated by Canada,,the most favoured nation" in respect of an import Tariff; and that, therefore, Germany finds herself obliged to treat Canada on the same footing, that is to say, to subject Canadian goods to the German General Tariff rates. The Germans consider that there is little or no analogy between the customs régime prevailing between France and her Colonial possessions and that between the United Kingdon and Canada. || 9. I may perhaps remark that the difference between the annual value of German exports to Canada and that of Canadian exports to Germany appears, in so far at least as regards the share of this trade wich passes through Hamburg, and which may, I believe, be estimated at about 75 per cent. of the aggregate import and export trade between Canada and Germany, to be growing less marked than it used to be. The following are the statistics for the last three years, viz.:

Value in Sterling of Exports from Hamburg to Canada (British

Value in Sterling of Imports to Hamburg from Canada (British

William Ward,

Her Majesty's Consul-General.

Nr. 13020. GROSSBRITANNIEN. Der Botschafter in Berlin an den Minister des Ausw. Unterredung über den Ausschluß Kanadas.

Berlin, September 16, 1898. (September 19.)

(Extract.) || I have the honour to report that I took an opportunity of speaking to Herr von Derenthall this afternoon on the subject of the decision of the German Government to discontinue the most favoured treatment of imports from Canada. || I told his Excellency that the Canadian Government had been disappointed at learning that the German Government hat taken this decision, and that I had been instructed by your Lordship to make a communication to the German Government on the subject. || Herr von Derenthall replied that he had not had an opportunity of studying the question very deeply, but that it seemed to him that, as Canada declined to treat Germany on the footing of the most favoured nation, it was only natural that Germany should do the same. || He requested that what he had said might be considered his personal opinion, and as in no way committing the German Government. The Head of the Commercial Department was now absent on leave, but would return in the course of a few days, and he therefore begged me to postpone the communication I had been instructed to make until after his return. To this I consented.

Nr. 13021. GROSSBRITANNIEN. — Der Minister des Ausw. an die Botschaft in Berlin. Soll nähere Mitteilungen über die Behandlung Kanadas verlangen.

Foreign Office, June 24, 1899.

My Lord, With reference to Sir F. Lascelles' despatch of the 16th September, 1898, I have been in further communication with the Colonial Office with reference to the decision of the German Government not to grant most-favoured-nation treatment to imports from Canada.

I have to instruct your Lordship to request the German Government to furnish you with a distinct statement of the grounds upon which they claim to distinguish the case of Canada from that of the French Colonies, and also from that formerly occupied by the Spanish and Portuguese Colonies under the Treaties of 1883 and 1872. || The fact that Canada has a larger measure of independence than the French, Spanish, or Portuguese Colonies does not appear to Her Majesty's Government to have any necessary bearing on the matter. These Colonies have, in most instances, like Canada, independent fiscal systems, and the grant by them of preferential treatment to their Metropolitan country appears not to have excluded them from most-favoured-nation treatment in Germany.

Nr. 13022. GROSSBRITANNIEN.

Salisbury.

Der Botschafter in Berlin

an das deutsche Ausw. Amt. Warum wird Kanada von der Meistbegünstigung ausgeschlossen? Berlin, June 28, 1899.

Your Excellency, In the preamble to the recent Law prolonging the „Handelsprovisorium"*) with England, reference is made to the exclusion of Canada from most-favoured-nation treatment, on the ground that, since the expiry of the Commercial Treaty of the 30th May, 1865, higher duties are levied in that Colony on German goods than on goods coming from Great Britain and from several British Colonies. As your Excellency is aware, Her Majesty's Ambassador had a conversation on this subject with Herr von Derenthal on the 16th September last, and Sir F. Lascelles then mentioned the disappointment felt by the Canadian Government on learning the decision taken by the Imperial Government. || In accordance with instructions which I have received from Her Mjaesty's Secretary of State for Foreign Affairs, I have now the honour te request your Excellency to favour me with a statement of the grounds upon which the Imperial Government desire to distinguish the case of Canada from the case of the French Colonies, and also from the position formerly occupied by the Spanish and Portuguese Colonies under the Treaties of 1883 and 1872. || The fact that Canada has a larger measure of independence than the French, Spanish, or Portuguese Colonies does not appear to Her Majesty's Government to have any necessary bearing on the matter. The Colonies of the countries above mentioned have in most instances, like Canada, independent fiscal systems, and the grant by them

*) Die deutsche Regierung hatte beim Reichstage eine Verlängerung des Handelsprovisoriums beantragt. (Publikation des Gesetzes am 12. Juli.) Red.

of preferential treatment to their Metropolitan country does not appear to have excluded them from most-favoured-nation treatment in Germany.

Gough.

Nr. 13023. DEUTSCHES REICH. Das Ausw. Amt an den englischen Botschafter. Antwort auf das vorige.

Foreign Office, Berlin, August 5, 1899.

(Translation.) || In reply to Viscount Gough's note of the 28th June last respecting the relations between Germany and Canada, the Undersigned has the honour to make the following statement to his Excellency Sir Frank Lascelles: According to the present state of legislation Germany grants most-favoured-nation treatment, on principle, to those States and countries only whose claim thereto is based on Treaties. || An exception to the above principle was made with respect to the British Empire, inasmuch as the power was granted by law to the Federal Council of the German Empire to extend most-favoured-nation treatment autonomously to Great Britain and to all her Colonies and possessions, or to certain of them, for a limited period. || Upon the termination of the AngloGerman Treaty of Commerce of the 30th May, 1865, it was desirable also, in connection with the pending negotiations for a new Treaty, that this exception should be made, in order to contribute so far as possible to the maintenance of the state of things which had existed throughout the long duration of the Treaty of the 30th May, 1865. Under that Treaty as is well known the British Empire enjoyed most-favoured-nation treatment in Germany, granting in return the same treatment to Germany, this treatment being granted in the British Colonies and possessions not only as against foreign countries, but also as against the British mothercountry. These relations existing under the Treaty of the 30th May, 1865, were altered by Canada for her part, inasmuch as she has accorded to imports from Great Britain special Customs advantages which she is not prepared to extend to imports from Germany. It naturally resulted from this situation that the Federal Council of the German Empire did not extend to Canada the most-favoured-nation treatment, granted autonomously and as an exception to Great Britain and the British Colonies and possessions. The Federal Council would commit an act in contradiction to the conditions explicitly laid down in the Laws of the 11th May, 1898, and of the 1st July, 1899, were they to continue most-favourednation treatment to a British Colony which had, on her side, altered the relations hitherto existing to the detriment of Germany. As regards the

French Colonies, our commercial relations with France and her Colonies. are based upon the provisions of Article XI of the Treaty of Frankfort. Similar Treaty provisions were at one time in force with regard to Spain and Portugal. As soon as the Treaties with the latter countries expired their Colonies also ceased to enjoy the most-favoured-nation treatment previously granted to them by Germany. The system by which a foreign country competes on equal terms with the Metropolitan country in the latter's Colonies is in force on an extensive scale. So far as the commercial relations of Germany are concerned, attention may be drawn to the case of the Netherlands, which country, by Article 32 A and B, and further by section 14 of the Final Protocol of the Commercial Treaty of the 31 st December, 1851, now in force, grants to German products an equal treatment with those of the Netherlands upon importation into the Dutch Colonies, in return for which we grant most-favoured-nation treatment to the latter in Germany. Our relations with the Colonies of Denmark are of a similar kind. It should also be pointed out that in her own Colonies Germany knows no distinction between German and foreign goods. || If Germany's attitude towards Canada is based, according to the above, upon a foundation of law, it must also appear to be completely justified on grounds of fairness. Canada has deprived Germany of a valuable right, of which we retained possession for more than thirty years under the Anglo-German Commercial Treaty which has come to an end. It cannot be expected of Germany that upon a change being made by one party in the state of affairs which has hitherto prevailed, she should accept the change without more ado; it is the less to be expected, as it is in the interests of the development of the commerce of the world, and of the mutual relations of trade and navigation between Germany and the British mother-country, that, in the British Colonies, equal treatment should be given to the products of Germany and of Great Britain. || The Undersigned avails, &c. Richthofen.

Nr. 13024. GROSSBRITANNIEN.

Der Botschafter in Berlin an den Minister des Ausw. Hat Bülow an die Verlängerung des Handelsprovisoriums erinnert.*)

Berlin, May 18, 1900. (May 21.)

(Extract.) Some days ago I took an opportunity of reminding Count Bülow that the law under which most-favoured-nation treatment was

Am 23. Juli wird die Verlängerung des Handelsprovisoriums unter Ausschluß

von Kanada und Barbados von der Meistbegünstigung publiziert. Red.