The Sun.
London, England, 1865-05-01 00:00:00

GREAT BRITAIN AND AUSTRIA.

The following is the memorandum presented to
the International Commission at Vienna by the
Right Hon. William Hutt at its opening on the 22d
of April, 1865, translated from the Neue Freie Presse
of Vienna :
"At the time when Great Britain, convinced of
the soundness of a free trade policy, first threw open
her ports and markets to the unrestricted access of
the world, there were persons who imagined that
among the countries likely to profit by the change
Austria would not be the least conspicuous. They
argued that as no factitious obstacle would now pre-
vent the free importation of Austrian productions
into England, and that as both in raw materials and
in various kinds of manufactures Austria could sup-
ply the English demand on favourable terms, the
vital principle of trade which disposes every one to
buy in the cheapest market must here vindicate its
influence, and, consequently, that large purchases
on English account must soon be made in the Aus-
trian dominions.
" This expectation has been wholly disappointed ;
it was not, indeed, founded on a thorough know-
ledge of the subject. The high tariff of Austria
rendered the realisation of this theory hopelessly
impracticable, and so it must always be between
two countries similarly circumstanced. Between no
two countries whatever, where the markets do not
offer great inequality of prices, can any large trade
be created, if high tariff duties in one of them ob-
structs the course of importation from the other.
" In the commercial relations between Great Bri-
tain and France up to the year 1860 we have a striking
illustration of the pernicious operation of this one-
sided policy, and, what is fortunate, we have ever
since that period the happy results of the opposite.
" The working of the new systems is thus brought
in presence of each other, and the contrast is complete.
Previous to 1860—that is, previous to the memorable
treaty between France and England, notwithstanding
the free access which France enjoyed to the English
market, the commercial intercourse between those
neighbouring countries was quite inadequate to their
commercial capacities. In 1860 France revised her
tariff, and an instantaneous change took place in
her trade with England. That trade is now more
than double of what it was then, and is by far the
most important trade which France carries on with
any State in Europe. The reason of all this is very
simple, and may be made very intelligible. For
instance, suppose that immediately after the reform
of the English tariff a London merchant, tempted
by the price of certain Austrian commodities, con-
templated laying out £l,OOO in purchasing them for
the English market, his profit on this simple tran-
saction would be obvious to him at a glance ; but
when he came to the consideration of the next stage
of his business, the profit to be realised by the
importation of an equivalent of English goods into
Austria, he would find himself perplexed in the ex-
treme. He would consult the letters of his AUstrian
correspondent and the Austrian price currents to no
purpose. No commodity capable of yielding him a
profit by importation into Austria would be found.
The penalty imposed by Austrian custom-houses on
all kinds of importation would leave him without
any margin for gain in the market. He would con-
sequently decline the Austrian trade, and look out
for another in which his capital would be more pro-
ductively employed.

" It is by the general operation of this process
that Austria, a country so abundantly blessed by
Providence, is left without any trade and without
Customs' revenue--at least, without any commen-
surate with her immense resources, her excellence in
manufacturing industry, the extent of her empire,
or the magnitude of her population ; and that,
while the commodities of England, France,
Switzer-
land, Belgium, and even Prussia are eagerly sought
for in every part of the world, the productions of
this noble country are little heard of beyond the
precincts of her own markets.

"It is evident from the preceding observations
that all which Austria has to do in order to increase
her commercial relations with , England, the richest
and most commercial country in the world, is to
reduce her tariff. She may do so at her own con-
venience, and, in the measure adapted to her oval
interests ; but, if she will only do it sufficiently,
there can be no doubt of the beneficial result to her
finances, to her industry, to the welfare and con-
tentment of her population, and to the public credit
of the empire.
" It is often said that it is the interest of Austria
to negotiate a commercial treaty with France and
other countries imposing high duties on Austrian
productions, rather than with England, because
England has nothing to give Austria in return for
her reductions of duty. If. the object of a com-
mercial treaty is commerce, no assertion can be more
erroneous. If Austria could by negotiation induce
France, for instance, to give her all that England
has given, unless simultaneously she lowered her
own tariff, she would obtain by such success 11.ci
commercial improvement whatever. No doubt, t
concerns the best interests of Austria to increase her
commercial relations with a country so
skilful, and so industrious as France; but in choos-
ing between France and England it is to be.
ation
re-
membered that the means for securing intern
cuts'
trade are simple, easy, and direct in the one.
wealthy, s
while they must be tedious, precarious, and ddlespPenl
tious in the other. In the one success
I the
almost exclusively on the will of Austria.
other it depends on an agreement of difficult arrange-
ment between Austria and France.