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No. 42.
WESTERN PACIFIC.
THE HIGH COMMISSIONER to THE SECRETARY OF STATE.
(No. 168.)
(Received 15th June, 1918.)
Office of the High Commissioner for the Western Pacific, SIR,
Suva, Fiji, 1st May, 1918. WITH reference to Mr. Bonar Law's Circular despatch of the 24th October 1916,* I have the honour to transmit to you, for your consideration, the enclosed letters on the subject of the commercial and industrial policy to be adopted after the War.
2. Copra, phosphate, and guano are the only articles of importance that are exported from the Western Pacific. Of imported articles, what are known as "trade goods" of an inferior kind are those that are most likely to be of enemy origin. 3. There should be no difficulty in applying to the islands in the Western Pacific restrictions on the exportation of copra that may be imposed in the larger Colonies, whilst similar, if not greater, restrictions on the export of phosphate and guano might be imposed in order to ensure those articles being retained for the use of the Empire and the Allied Powers.
4. The policy that may be adopted with the view of preventing or restricting the importation into other parts of His Majesty's dominions of "trade goods" of enemy origin should be applied, in my opinion, equally to the Western Pacific Islands.
5. Since the outbreak of war, much of the export trade in copra from Tonga has been diverted from Australia to the United States of America, and part also of the copra from the Gilbert and Ellice Islands has been sent to the United States and to Japan. It is unlikely that those new markets will be abandoned at the con- clusion of the War, and measures should be taken to prevent exports of copra reaching ultimately importers in enemy countries or importers of enemy nationality.
I have, &c,
BICKHAM ESCOTT,
High Commissioner.
Enclosure 1 in No. 42.
(New Hebrides. No. 13/17.) SIR,
British Residency, Vila, 18th January, 1917. WITH reference to Mr. Ayton's despatch No. 148, of the 20th November last, I have the honour to state that I have no observations to offer on the recom- mendations of the Economic Conference of the Allies which are set forth in the enclosure to the circular from the Secretary of State for the Colonies of the 25th September last, but beg leave to submit the following remarks in regard to the questions put to the Industrial and Commercial Policy Committee. marked (b) and (d), which are contained in the same circular.
As to (b), one of the most necessary steps to be taken to recover foreign trade (of the home trade I have no knowledge) lost during (and before) the War, is, in my opinion, a radical change in the manner of the representation of British trade abroad. With some knowledge of the methods employed by British commercial houses in the Near East until within a few years ago and I have no reason to suppose that they have since undergone any improvement-it has always been a matter of surprise to me that we have retained such a large share in the world's trade. We should do well to adopt some of our rivals' methods; e.g., in the matter of the qualifications of our agents, financial facilities for customers, adaptability of goods to local requirements, issue of price lists in the language, currency, In fact, we should weights, measures, etc., of the different countries dealt with.
study the foreign markets, and not expect the foreign markets to study us. Observance of these rules, combined with the acknowledged superiority of our goods, should. I think, go far in enabling us to recover our lost command of the foreign markets.
* 45879: not printed,
3.
As to (d), one method of attaining the object indicated would appear to be the limitation by legislation of the extent to which foreign capital and foreign personnel may be employed in the development and working of the sources of supply within the Empire.
His Excellency
The High Commissioner
for the New Hebrides.
(No. 31.)
SIR,
Enclosure 2 in No. 42.
I have, &c.,
M. KING, Resident Commissioner.
His Britannic Majesty's Agency and Consulate,
Tonga, 27th February, 1917.
In reply to your letter No. 175, of the 20th November last, I have the honour to make the following observations :-
2. Regarding the measures recommended at the Economic Conference of the Allies for the War period-I would point out that laws and regulations dealing with practically all these suggested measures are now in force in the kingdom of Tonga, and that the Tongan Governinent has made no demur as to passing any regulation dealing with enemy aliens and trade at the request of the British Government.
3. Regarding the transitory measures recommended for the period of recon- struction of the Allied countries and for the permanent measures of mutual assistance and collaboration among the Allies, I would suggest that the Tongan Government be invited to pass legislation to the following effect:-
That for the space of twenty years the importation of goods from enemy countries, and the exportation of copra or other local produce to enemy countries, be totally prohibited.
After that period the question could again be considered, as by that time British trade interests should be so paramount in these Pacific Islands that further legislation might be unnecessary.
4. I would further suggest that no enemy subjects be allowed to take up residence in Tonga for the purpose of following commercial or planting businesses either for a specified period of, say, twenty years, or as a permanent measure. This is necessary to prevent the present German population in this country from obtaining a further numerical superiority. It will also prevent the German influence from again asserting itself after it has been once swept away by the success of the Allies in the present War.
5. I have little hesitation in saying that the Tongan Government would readily pass the desired legislation.
His Excellency
The High Commissioner
for the Western Pacific.
Suva, Fiji.
I have, &c.,
G. B. SMITH-REWSE,
His Britannic Majesty's Acting Agent, and Consul
Enclosure 3 in No. 42.
(Solomon Islands, 1917. No. 68a.)
YOUR EXCELLENCY,
Office of the Resident Commissioner,
Tulagi, 26th March, 1917. WITH reference to your letter No. 240, of 20th November last, on the subject of the Economic Conference for the future development of trade within the Empire, I have the honour to submit the following observations, which may have some bearing on the Protectorate's interest in the industrial policy to be adopted after the War.
The imports into the Protectorate average, annually, about £135,000, of this amount thirty-five per cent. represents food goods, thirty per cent. hardware and drapery, ten per cent, building materials, and ten per cent. tobacco, wines, beer, and spirits.
FLLLL | CO.885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE
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