1180 ADMINISTRATION AND LEGISLATION [parTV

observes that ‘ it is only on an abstract theory of the superior
advantages of a free-trade policy, that the Secretary of State
objects to a proposal which seems to sanction protection,
under the name of reciprocity. These are views,” he goes on
to state, * which can find no acceptance with Colonial Legislatures,
 under a system of Constitutional Government.” It
is obvious that a prolonged controversy on a subject on which
the opinions entertained on either side are, unfortunately,
so entirely at variance, would not tend to promote the
principles of free trade, opposition to which would become
identified in the minds of the Colonists with the assertion of
their rights of self-government, and that it could scarcely
tail to impair those relations of cordial and intimate friendship,
 which both the Imperial and the Colonial Governments
are equally desirous to maintain.
But although for these reasons Her Majesty’s Government
might not feel justified in refusing to allow the Colonists to
adopt the policy which they think best for their own interests,
they desire to point out that, in order to meet the views of
the Colonial Governments as expressed in the papers now
before me, it would be necessary not only to repeal so much
of the Australian Colonies Government Act, 13 & 14 Vict.
c. 59, as prevents the imposition of differential duties, but
to exempt the Colonies in question from the operation of
any future commercial treaties which may be concluded by
this country, containing stipulations against such duties,
leaving them at liberty, subject to the obligations of existing
treaties, to make such arrangements as they may think fit,
for reciprocity with each other, or with foreign nations ; and
before so serious a step is taken, they would ask the Colonists
oravely to consider the probable effects of a measure which
might tend materially to affect the relations of the Colonies
bo this country and to the rest of the Empire. In the meantime
 they have thought it right not to proceed in this matter
until the Australasian Governments concerned have had an
opportunity of communicating any further observationswhich
they may desire to make in explanation of their views,

The response to the intimation of the views of the Imperial
Government was satisfactory : Tasmania repeated the request
 for legislation, and expressly pointed out that it only
asked for powers as to inter-colonial duties, and Victoria
concurred in this view, as did Queensland. New Zealand!
' Parl. Pap., C. 576, pp. 57 seq.