§ MR. PULLERsaid, it might have escaped the attention of hon. Members that the notice which for some time past had been standing on the paper on the subject of the paper duties had yesterday been altered by the Chancellor of the Exchequer so as to propose a diminution of the Customs' duty on paper after the 16th of August, instead of their total abolition. For some years past the Customs' duty on paper had been 2½d. per lb., the object of its imposition being to compensate the home manufacturer for the Excise duty of 1½d. per lb., and the additional 5 per cent to which he was liable, as also for the expense to which he was put by the Excise regulations, and for the disadvantage under which he laboured in comparison with his foreign rivals through the restrictions placed by other countries on the export of rags. In France and Belgium the export of rags had been altogether prohibited, and in Germany, Holland, and other countries there had been a large duty of from 6s. to 9s. per cwt. In 1853 the subject was distinctly brought under the notice of the Chancellor of the Exchequer, who then contemplated an equalization between the Customs' duty and the Excise; but the paper manufacturers of this country made nit a good case, and his proposal to reduce the Customs' duty was abandoned expressly on the ground that they would be exposed to an unfair competition if such a measure were adopted. When the Chan- 2258 cellor of the Exchequer this year proposed the total abolition of both the Excise and Customs' duties on paper, our manufacturers were again thrown into consternation. The Foreign Secretary had intimated that the Government would use their best endeavours to induce other States to repeal or modify their restrictions on the exportation of the raw material, and on a subsequent evening the House had listened with pleasure to the announcement made by the noble Lord that the French Government had consented to substitute for their previous system of prohibition a small export duty on rags. The home manufacturers thought, when the House of Lords rejected the Bill for the repeal of the Excise duty, that the proposal to deal with the Customs' duty on paper would be abandoned by the Chancellor of the Exchequer. But they had now been undeceived, because the right hon. Gentleman had given notice of a Motion to reduce the Customs' duty to such an amount as would exactly compensate the Engligh manufacturer for the Excise duty, and for the expense occasioned by the Excise regulations, but would not leave him any protection at all in respect of the existing restrictions on the export of the raw material from other countries. Under these circumstances he begged to ask the Secretary of State for Foreign Affairs, Whether Her Majesty's Government has succeeded in obtaining from any of the Continental Governments the abolition or modification of the taxes or restrictions imposed by them on the export of Rags; whether it be true that the French Government has abandoned its project of substituting a Duty on the export of Rags for the prohibition which now exists; and, whether any Communication has been received from the French Government, claiming that, under the recent Treaty of Commerce, the Customs' Duty on French Paper imported into this country be diminished?
§ LORD JOHN RUSSELLWith regard to the first question, I certainly did undertake, as the hon. Gentleman has stated, to represent to foreign Governments that it would be the desire of Her Majesty's Government that some change should be made with regard to the export of rags, that where there was a prohibition it should be abolished, and that where there was an export duty that duty should be reduced. I am sorry to say that those representations have not been successful; that, although some of the foreign Governments 2259 promised to consider the matter, no efficient steps have been taken for that purpose, and that many Governments replied that the paper manufacturers objected to any diminution of duty or removal of prohibition. That is the answer which we have received from Austria, Prussia, and from other Powers. With regard to the second question of the hon. Gentleman, I stated some time ago that the French Government proposed to change their system of prohibition into one of duty, and accordingly they submitted to the legislative body a project for such an alteration. We have no official information upon the subject, but we understand that great opposition was made to that project, and there are great doubts whether it will be carried. It therefore does not appear at all certain that the French Government will persist in the proposition. With reference to the last question, I imagine that, the treaty of commerce having been sanctioned by Parliament, the French Government will expect that our obligations in that respect should be fulfilled. They have made no communication upon the subject, but I imagine that they consider that, as a matter of course, we shall comply with the obligations of the treaty.