§ Mr. HANNONasked the President of the Board of Trade whether any negotiations had taken place between His Majesty's Government and the Government of the Dominion of Canada before the recent change in the tariff applicable to the imports of British cotton yarns and piece goods into the Dominion; and if he is now prepared to try and secure a modification of the increased percentage of material and labour in the qualification for preferential treatment?
§ Mr. W. GRAHAMYes, Sir. The regulation providing that 50 per cent. of the value of any goods must be due to British labour or materials of Empire origin in order to be entitled to preference became operative on 1st February last, and some time before that date the High Commissioner for the United Kingdom in Canada called the attention of His Majesty's Government in Canada to the difficulties which certain United Kingdom manufacturers, including those in the cotton industry, would experience in fulfilling the new requirement if literally interpreted. Since then we have been in continuous touch with His Majesty's Government in Canada, and the matter was taken up in particular by the Lord Privy Seal in connection with his visit to Canada. His Majesty's Government in Canada recently referred the particular question of cotton goods to the Canadian Tariff Board. That body has concluded its inquiries, but has not yet reported.