Captain WATTasked the Secretary of State for Dominion Affairs whether he is aware of the practice of United States firms to establish subsidiary companies on Canadian soil where American raw materials are processed and thence imported to this country as British; and whether he will place this matter on the agenda for the Ottawa Conference in order to prevent such products being included in any system of Empire Preference which may result therefrom?
Mr. THOMASMy attention has already been drawn to this matter. The question whether the products mentioned are entitled to preference in this country depends upon the proportion of their value attributable to Empire labour and material. This proportion is now fixed at 25 per cent. as a general rule, but it can be varied at any time in respect of goods954W of any class or description if circumstances justify such a course. The situation will be watched, so that, if necessary, advantage may be taken of the Ottawa Conference for consultation between representatives of the Governments concerned.