478
PUBLIC RECORD OFFICE
Reference :--
ICO.885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH—NOT TO
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I would further recommend the appointment of a Trade Commissioner for the East Africa Protectorates, attached to a Department of Commerce to be established in Great Britain, whose duties it would be to afford information to commercial firms on business matters, and to see that the terms of the commercial agreement of the Allies are carried out. While it will be difficult to maintain a successful opposition to enemy commercial intrigue, which is certain to follow the declaration of peace, without actually exercising State control, considerable assistance can be rendered by local Chambers of Commerce co-operating with a Trade Commissioner.
10. Your circular despatch of the 25th September, 1916,* was duly com- municated to the Uganda Chamber of Commerce, and I enclose, for consideration, a copy of a letter from the Vice-President forwarding certain resolutions passed on the 28th July, 1916, to which the Chamber has since stated it has nothing to add. These resolutions were originally submitted to you under separate despatch. The questions raised in resolutions 2-7 and 10 have been discussed in this despatch. That in resolution No. 1, viz., a levy of a tax on profits on non-Allied firms and individuals trading in this Protectorate, and the compulsory production of balance sheets for the purpose, has much to commend it, although I am doubtful about its application to Uganda at its present stage of development. Resolutions 8 and 9 refer more particularly to Imperial questions.
11. Given the removal of existing restrictions to the East Africa Pro- tectorates, either by the complete renunciation of the Berlin and Brussels Acts or by the withdrawal of the East Africa and Uganda Protectorates from their scope if the complete cancellation is considered undesirable, much can be done locally. Without such withdrawal, differential treatment is forbidden, and I would again urge the necessity for prompt action in order that an early com- mencement may be made in initiating legislation necessary to carry out such of the above proposals as receive your approval.
I have, &c.,
The Honourable
H. R. WALLIS,
Deputy to the Governor.
Enclosure in No. 13.
The Secretary of State for the Colonies,
London.
Uganda Chamber of Commerce,
SIR,
Kampala, 11th September, 1916. THIS Chamber is of opinion that the time has arrived to represent to you the position of foreign nations trading in this Protectorate, and to suggest certain alterations in the method of dealing with the same, both now and after the conclu- sion of peace. We have passed the enclosed resolutions. These we now beg to hand to you per favour of His Excellency the Governor of Uganda, for your kind consideration.
It has, you will observe, been assumed that countries allied to Great Britain in the existing conflict will receive preferential treatment, but that assumption does not hold good in resolution 4 dealing with the registration of shipping.
We beg to be allowed to explain our reasons for passing such resolutions. Resolution 1.-Until 1914 the Protectorate of Uganda received a grant-in-aid from His Majesty's Government, and would still, we understand, be receiving such a grant but for the economy demanded by war conditions. All firms operating here and which are registered in Great Britain have their dividends taxed for income tax and thus contribute to the upkeep of the Empire. Firms not so registered pay no such tax, and are thus enabled to compete on terms decidedly to their advantage over such British firms. During the continuation of the War neutral firms here have decided advantages over British firms. One neutral firm at least had men and stocks of goods waiting here until German East African ports were taken by our forces, and the moment such were open to trade were permitted to enter such ports and open up trade there.
**No. 1.
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British firms were unable to do what they would have wished in this direction because,
1. Men cannot be obtained from Great Britain, owing to the Military Service
Regulations.
2. The British Government, except under very special circumstances, will
not allow fresh capital to be raised for companies abroad.
3. Owing to the great difficulty experienced in obtaining trade goods from
home, and the shortage of shipping facilities.
No objection is raised to neutrals being allowed to trade here or in German East Africa, but this Chamber considers that the profits of such neutrals should be taxed on the same basis as British firms are taxed, and at the moment help to pay the debt incurred by Great Britain in the taking of such new colonies, and after the War should, together with enemy countries, thus contribute towards the upkeep of the colonies they trade in.
Resolutions 2 and 3.-This Chamber is of opinion that reciprocal trading rela- tions might well be established between all parts of the British Empire and, as far as possible, with Allied nations.
Resolution 4.-It is considered reasonable that all vessels other than British should pay a larger proportion towards harbour and railway upkeep than Britishers pay.
Resolution 5.-As a contrast to the British method of treatment of alien traders in this Protectorate, we give an example of the treatment accorded to a British firm which was desirous of opening up business in German East Africa prior to the outbreak of war. It is stated that the firm in question (a British cotton ginning company) desired to erect a ginnery at Mwanza, and was informed that the purchase price of a ginnery plot was £600 (a fair price in this Protectorate for similar land would have been £50 to £100). This offer was not accepted. It was stipulated that the firm could under no circumstances buy cotton for export from growers, but that buying was only possible from competitive German ginners already established there. The result of this was that the choice of all the best cotton was given to the Germans and the British firm could only get the inferior cotton rejected by the German buyers. At that time this German firm of ginners was already established in Uganda and East Africa, and had been accorded rights and facilities equal to those accorded to bona fide British traders. England has at various times subsidized the cotton industry, and aliens have reaped the benefit of such subsidies and in no instance have contributed towards the repayment of such.
Whilst it may be said that Allied nations do not accord such treatment to Britishers, British Colonies are so extensive as contrasted with those of other nations that this Chamber feels that different terms should be enforced for any foreigner when purchasing or leasing land in our colonies.
Resolution 9.-In the Eastern Province of this Protectorate agriculture is extending rapidly. Buyers of raw cotton in particular are put to great expense and danger of loss in the transport of specie, owing to the fact that there is no bank in the whole of that vast Province except at Jinja, the port of entry. Yet some £250,000 sterling changes hands annually in that Province, and the trade there pro- vides revenue in many ways for the Administration.
The moneys received as taxes and revenue by the Administration are sent in to Jinja, or to headquarters, under police escort, and have then to be carried out again by cotton and produce buyers under armed escort. If banks cannot see a profitable opening for business in such Provinces, this Chamber desires the Government to give banks a guarantee against loss.
Resolution 10.-This Protectorate, British East Africa, and German East Africa, are likely to suffer severely from dumping after the War. Many goods manufactured especially for trade here, e.g., common hoes, cotton goods, etc., will be useless elsewhere, and must be disposed of at any price. It will be thought by the Central Powers that German trade shall not be allowed to decrease in what was a favourable market, and every effort will be made to hold it against British trade. Specific duties would effectually control such dumping.
I have, &c.,
CHAS. W. HATTERSLEY,
Vice-President.