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885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

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Ale, and Beer, Cotton piece goods, Cotton goods (other kinds), Earthenware, Mineral Waters, Paints and Oils, Perfumery, Provisions, Tools, unenumerated goods, Wearing Apparel, and Woollen manufactures.

39. On the other hand, the Assistant Comptroller of Customs considers that we are already paying abnormally high prices, even for war time, for the following articles, large quantities of which were formerly supplied to us by Germany

Agricultural Implements, Beads, Blue Indigo, Furniture, certain kinds of Hardware (Enamelware,) certain kinds of musical Instruments, and certain kinds of Machinery.

40. With the exception of Enamelware, the above may all be regarded as more or less luxuries; but this particular kind of Hardware is not only very popular with the native population, but is peculiarly adapted for their purposes owing to its unbreakable qualities, and may to some extent be regarded as a necessity.

I find that in 1909 Germany supplied the Gold Coast with hardware to the value of £14,412, as against goods under the same main heading imported from the United Kingdom worth £42,530 during that year; the imports from Germany representing 22.35% and those from the United Kingdom 65.98 % of the total value of such articles imported during that period.

By 1913, the value of the hardware imported from Germany had risen to £30,205, and that of the hardware supplied by the United Kingdom to £81,063, out of total imports valued at £121,064. Germany had thus increased her percentage from 22.35 % in 1909 to 24.95 % in 1913, while simultaneously the United Kingdom had increased the percentage from 65.98 % to 66.96 %. German trade in this class of article had therefore made during the quinquenniad a somewhat larger proportionate advance than had that of the United Kingdom, but this advance had not been of a character to warrant any uneasiness or anxiety.

In 1913 the United States of America provided us with hardware to the value of £1,015, representing 83% of the value of the whole import of these articles for that year; but by 1916-that is to say after the closing of the German sources of supply-the United States of America had increased the value of her imports of hardware into the Gold Coast to £26,385, equivalent to 15.09% of the whole, while the value of the imports from the United Kingdom had simultaneously risen from £81,063 in 1913 to £141,556 in 1916, and the proportion of her imports to the value of the total imports of hardware had risen from 66.96% to 80.98%.

41. I regret to have to weary you with these figures, but the point which they serve to bring out is one of considerable importance. It is that the exclusion of certain classes of goods of German origin, while admittedly raising the price for the local consumer, is likely to operate less for the benefit of the British manufacturer and for the expansion of British trade than in favour of other nationalities-e.g., in this instance, the United States of America, which is the one of our Allies that is least in the need of increased financial advantage. To me this appears to be something which is not calculated very materially to serve the interests of the Empire, and for which, therefore, British subjects in the Gold Coast may well be reluctant to pay.

42. With regard to Drugs, Chemicals and Sugar, the Assistant Comptroller of Customs reports that we are now obtaining these in sufficient quantities from the United States of America; but he adds that "the boycott of German goods will mean having to pay higher prices elsewhere for our supplies "of these articles, and unfortunately not altogether for the benefit of the British manufacturer, since "it is likely that the American has come into the field to stay."

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43. I attach herewith for your information, a Table which I have caused to be prepared by the Acting Comptroller of Customs (Mr. Colin Harragin) showing the principal articles of imports into the Gold Coast Colony, for the eight years from 1909 to 1916 inclusive, and the value of the supplies of them which we have drawn from the various countries with which our trade is carried on. (Enclosure viii.)

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QUESTIONS PROPOUNDED TO THE COMMITTEE ON COMMERCIAL AND INDUSTRIAL POLICY.

44. Turning now to the consideration of the questions addressed to the Committee presided over by Lord Balfour of Burleigh, concerning which I have been invited, by your predecessor's Circular of the 25th September, to express the views of my Government in so far as these matters affect the interests of the Colony under my administration, I propose, with your leave, to deal with them seriatim.

45. The first of these questions is :-

"What industries are essential to the future safety of the nation and what steps should be taken to “maintain and establish them?". With this I should like simultaneously to consider the fourth question "(d) To what extent and by what means the sources of supply within the Empire can be prevented from "falling under foreign control?".

46. As regards the Gold Coast and its Dependencies; the mining industry is, I think, the only class of enterprise which can be recognised as possibly falling within the category indicated in the first of these questions. At the present time this industry is controlled, financed and managed almost exclusively by British subjects. The only exception appears to be a mineral oil concession, which is not at present being worked, but which is owned by a French Company.

47. The Gold Coast and Ashanti annually produce anything from 250,000 to 410,000 ounces of gold. During 1916 a valuable and extensive deposit of manganese, which had been discovered by Mr. Kitson, the Director of the Geological Survey, was opened up, and mining operations upon it were begun.

Still more recently a series of large deposits of bauxite, the analyses of which are highly encouraging, has been discovered on the Kwahu plateau by Mr. Kitson, and the Government of the Colony has arranged to lease it from the native Chiefs in whose tribal divisions the deposits are situated. It may safely be said, I think, that our knowledge of the mineral potentialities of the Gold Coast and its Dependencies is as yet very imperfect and it is possible, and even probable, that considerable developments will be witnessed during the next few years. Mineral oil has also been found, though it cannot be asserted with any measure of confidence that it exists in payable quantities.

48. It appears to me that the supply of minerals available throughout the Empire should be withheld from foreign exploitation and control. There should, I imagine, be no difficulty in finding sufficient British capital to defray the cost of its development, but this, of course, is a point upon which I am not competent to form an opinion.

Provided, however, that no doubt is to be entertained on this score, I am inclined to advocate the passage of local legislation making prevision:-

a. That no Concession shall henceforth receive a Certificate of Validity, under Section 15 of Ordinance No. 14 of 1900 (The Concessions Ordinance,) unless it be the property of bona fide British subjects.

b. That every Director of a mining Company or Corporation, engaged in actual or prospective mining operations in the Gold Coast or in its Dependencies, shall be a British subject.

c. That the share capital of any such enterprise must be held to the extent of not less than 80 per centum by bona fide British subjects.

d. And that any failure to comply with provisions b and c above shall render a mining concession liable to cancellation, subject to an appeal to the Governor in Executive Council.

49. With regard to existing mining Companies concerned with British-owned Concessions the provi- sions marked b and c above might be enforced after due notice which, I consider, should run for a short term of years to enable the necessary arrangements to be made without financial loss. I believe, however, that a scrutiny of the existing Companies Directorates and share-lists would show that all or nearly all already comply with the suggested requirements.

50. As regards the oil concession which is owned by a French Company, I do not think any action having retrospective effect should be taken. The prevention of future concessions being granted to foreign- ners should afford ample protection, so far as this Colony is concerned, to the exclusive British control of the Gold Coast mining industry.

51. As regards the other raw materials furnished by the Gold Coast and its Dependencies, none of them in the past can be accurately described as having "fallen under foreign control." In this connection, I would invite your attention to what I have written on the subject of palm kernels in paragraphs 22 to 29 of this Despatch.

52. I venture to suggest that it is most important that no confusion of thought should arise between "the foreign control" of an industry, and the fact that a foreign country chances to afford the largest and best market available for the produce of that industry.

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