The Committee examine the objections to the grant of complete power of taxation, viz., that (1) it would break up the fixed unity of the realm; (2) that it would impair facilities of trade between the two countries; (3) and that it is at variance with the principle of a Customs Union, said to be a feature common to federations. On the first point the Committee reply: (1) That in their view the Irish Government should have power to impose Customs duties only for the purpose of raising revenue, and that the Imperial Government should reserve questions of tariff, and foreign relations. Thus fiscal unity on important points would be maintained. For sixty years from the Union separate machinery existed for the collection of different rates of duty in the two countries. If Union could dispense with fiscal unity, _a fortíorí_ can any less close form of association do so. (2) The Committee do not attach importance to the second objection. The Custom House does not seriously trammel the convenience of traders between this country and the Continent, and it was found endurable when the variance between England and Ireland was more formidable than now. (3) On the third objection the Committee argue that a Customs Union is indispensable, when the boundaries of federated states form a ring fence. It is not indispensable when, in a case like that of England and Ireland, the two countries are separated by sea. These reserves diminish, of course, the severe simplicity of the scheme, and the Committee’s answers to objections admit some inconvenience to trade, but a great change like that of Home Rule must have some drawbacks, and in the opinion of Home Rulers, the end to be gained far more than compensates for slight inconveniences which attend its execution. It is certain, moreover, that, whatever may be the measure adopted, it will be necessary to take means for ascertaining the “true” Revenue of Ireland, and to that extent there must be some slight interference with trade. I agree with the Committee in their preference for the simplicity of complete autonomy. Sir Henry Primrose and his colleagues agree to a great extent with a Minority Report of the Financial Relations Committee (1896), signed by Lord Farrer, Mr. Bertram Currie and myself. The advantages of complete autonomy are obvious, and I cannot avoid a regret that it has not been possible to adopt it. I note, however, that the greatest Irish authority on Irish Government, Lord Macdonnell, though in favour of Home Rule, is entirely opposed to the grant of fixed autonomy to Ireland.