PUBLIC RECORD OFFICE
דנון
C.O.
Reference :-
+885
17 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO
80
NATAL.
MEMORANDUM on the Effects of the Preferential Treatment accorded to British
Goods imported into Natal.
Before entering upon this inquiry, it is necessary to determine the degree of comparability and accuracy of the data available; and here, at the outset, a vital defect is apparent.
Prior to the South African Convention of 1903, there was no requirement of documentary evidence that goods entered as of British origin were actually manufactured in the United Kingdom. In many cases the invoices of agents, who either did not know, or failed to state, the country in which the goods originated, were accepted for Customs purposes. concluded that many foreign (especially German and American) goods It must therefore be imported into England and subsequently shipped to the South African markets lost their identity, and were described as British goods upon their entry into this Colony.
It is known that quantities of goods introduced into the United Kingdom in a crude state, and there finished or refined, have, under the operation of the Convention, been deprived of the British character they assumed prior to July 1903; for the demand that not less than 25 per cent. of British labour shall enter into the cost of production before articles can be allowed the preference has revealed the foreign origin of large quantities of goods the British character of which was formerly unquestioned.
The insistence upon the production of manufacturers' invoices and of certificates of origin, while it has not, of course, actually shut out British goods, has unquestionably tended to reduce the proportion of imports credited to the United Kingdom in the Statistical Returns.
Indeed, while truly British manufacturers may have really benefited to a considerable extent by the preference, the tendency of the stricter scrutiny of the evidences of origin has been to so reduce the proportion shown to be British in those Returns that it is a matter of surprise when they show any increases at all.
It appears, therefore, that a comparison of the latest figures with those for a period prior to 1903 is worthless. This is most unfortunate, since it narrows down the present inquiry to a question of whether the proportionate increase or decrease in the imports of United Kingdom manufactures during 1905, as compared with 1904, has been greater or less than the increase or decrease in imports of foreign manufactures during the same period; and any conclusions reached on this point will not determine beyond doubt whether or not the preference has beneficially affected the Mother Country.
However, in case it should be thought that some useful information may be obtained from the figures, Tables No. 1 and 2 herein have been compiled, showing the value, in the case of No. 1 Table, of all imports into the Colony (of the classes of goods specified), and, in the case of Ño. 2, of the value of goods (in those classes) of the United Kingdom manufacture, during each of the years 1902, 1903, 1904, and 1905. From these tables it appears that in two classes, the 25 per cent. and the 10 per cent., the proportion of British to total imports decreased in 1905 as compared with 1902, while in the other two classes, the 12 per cent. and the 21 per cent., increases are shown; but as the great majority of goods fall under the 10 per cent. class, the aggregate proportion was 6.2 per cent. less in 1905 than in 1902. It should be mentioned that the classes named embrace practically all the articles affected by the preference.
These figures, then, indicate that the proportion of British imports as compared with total imports has, generally speaking, declined under preferential treatment; but, for the reasons stated, those for 1902, a year prior to the Convention, are unreliable, and must be disregarded. This fact invalidates any conclusions which might be drawn from these two tables.
Turning to a consideration of the imports for the years 1904 and 1905, the figures for which may be taken to be as nearly as possible accurate, it is noticed that increases are recorded in each class for the latter year, being, however, more pronounced in the case of Classes Nos. 1 to 3. But here again, when it might appear reasonable to conclude that Great Britain is really improving her position in the local markets by reason of the preference,
81
there are circumstances to be remembered which preclude the acceptance of such a conclusion without question.
It is, for instance, a matter of common knowledge that a very good improvement has taken place during these two years in the manner of packing goods in the Mother Country, the carelessness displayed in this imported matter in former years having considerably injured the prospects of British trade. There is also evidence that far greater care is now exercised to avoid sending out goods ill-suited to local requirements. Who can say, therefore, how far these factors have contributed towards securing the better averages shown for 1905?
There is reason to believe that in the higher rated goods-the 25 per cent. and the 12 per cent. classes-where the preference means an advantage of 6 per cent. and 3 per cent., respectively, some little benefit has been derived by the Home manufacturers; but, perhaps, after all, the information obtained from South African importers themselves conveys as true an idea of the effect of the preference as it is possible to obtain, and from inquiries made of a number of them it appears that in their opinion the benefit derived has been, in the great majority of the lines of goods, exceedingly small.
Table No. 3 shows the values of manufactured goods imported from the United Kingdom, the British Colonies, and all places in the British Empire, and foreign countries, respectively, during the year (1902) immediately preceding the granting of the preference, and compares them with the values of imports of similar goods during the year 1904-the last year for which complete figures are available.
It will be observed that there is an apparent falling off in the latter year both as regards the United Kingdom and the Colonies and India; these last named did not, save in the case of Canada, enjoy the preferential treatment, but of course the objections raised with reference to the figures in Tables Nos. 1 and 2 apply with equal force to those in Table No. 3.
Indeed, the conclusion of the whole matter is really this, that while it may fairly be inferred that some few British manufactures have under the preferential treatment been able to make a little headway, there is really no convincing evidence that that preference has either succeeded or failed to accomplish the object for which it was designed. Attention is, however, drawn to the figures appearing under Class 4 (machinery) British Manu- factures, in Table 3. A percentage of 68 2 in 1902 rose to one of 78.3 in 1904, so that in respect of this class of goods there really does appear to have been a transference to the United Kingdom of orders representing 10 per cent. of the total imports of machinery which in the former year went to other countries.
GEO. MAYSTON,
May 8, 1906.
No. 1.
Collector of Customs.
TABLE showing the VALUE of TOTAL IMPORTS of the Classes of Goods specified during each of the Four Years, 1902–5.
'Classes of Goods.
Year 1902.*
Year 1909.
Year 1904.
Year 1905.
Subject to a duty of—
£
£
£
£
1. 25 per cent. -
336,186
398,708
176,062
201,163
2. 12
145,363
21
231,005
119,605
111,003
3. 10
4. 2
5,138,272
844,539
6,696,719
1,011,309
4,234,100
4,412,408
777,250
1,002,032
Totals
- £
6,764,360
8,837,741
5,307,017
5,726,606
In this year the Tariff was not divided into the classes shown, but the values given are those for the goods which since July 1903, have been charged with the duties specific). See second paragraph with regard to the figures for 1902 and 1903.
E 45018,
F
No. 2.
TABLE showing the VALUE of UNITED KINGDOM MANUFACTURES under each of the ad valorem Classes imported into Natal during the Years 1902 to 1905 inclusive, showing also the Proportion those Values bore to the Total Imports of the Colony in each Class.
82
1902.
1903.
1904.
1905.
Percentage of
Classes of Goods.
Value.
Total Imports of same Class.
Value.
Percentage of Total Imports of same Class.
Value.
Percentage of Total Imports of same Class.
Percentage of
Total Imports of
Value.
same Class.
Subject to a duty of-
1. 25 per cent. -
2. 12
19
£
£
£
£
294,752
87.7
333,524
83.6
126,979
72.1
153,523
76.3
93,094
64.0
144,064
62.4
78,144
65.3
89,608
80.7.
3. 10
"
4,157,419
76.4
4,533,929
67.7
2,558,130
60-4
2,938,236
66.6
4. 2
31
575,684
68.2
757,910
74-9
609,119
78.3
797,295
79-5
Totals
5,120,949
75.7
5,769,427
69.2
3,372,372
63.5
3,978,662
69-5