oHAP. VI] TRADE RELATIONS AND CURRENCY 1169 of the States of the Zollverein any higher or other import duties than those which are levied on articles of the like kind which are the produce of another British Possession, provided such duties are not higher or other than the duties imposed on articles of the like kind, being the produce of the United Kingdom of Great Britain and Ireland.’ } But apart from the strict interpretation of the Treaty, it seems very doubtful whether it would be a wise course on the part of the Australasian Colonies, which, both as regards emigration and trade, have more extensive relations with Germany than with, perhaps, any other foreign country, to place German products and manufactures under disad- vantage in the Colonial markets. Proceeding to the third question, Whether, if the principle of allowing the imposition of differential duties were conceded, the Colonies could be permitted to impose such duties without the express sanction of the Imperial Government in each particular case ? you will be prepared, by what I have already said, to learn that I consider it open to serious doubt whether such absolute freedom of action could be safely given. Her Majesty’s Government are alone responsible for the due observance of Treaty arrangements between foreign countries and the whole Empire, and it would be scarcely possible for the Colonial Governments to foresee the extent to which the trade of other parts of the Empire might be affected by special tariff agreements between particular Colonies. It must, moreover, be anticipated that these differential agreements, being avowedly for the supposed benefit of certain classes of the community, would be liable to be affected by temporary political circumstances. The door having been once opened, each producing or manufacturing interest, and even individuals desirous of promoting any new enterprise, might in turn press for exceptionally favourable treatment under the form of inter-colonial reciprocity, while the real grounds for such changes as might be proposed would be intelligible only to those concerned with local politics. It would appear, therefore, to be by no means clear that Her Majesty’s Government could be relieved from the obliga- tion of examining the particulars of each contemplated agree- ment, however limited ; and while it would be very difficult for them to make such an examination in a satisfactory manner, a detailed inquiry of this kind could hardly fail to be irksome to the Colonies, and to lead to misunderstandings. It remains for me, lastly, to ask how far it is expedient,