PUBLIC
RECORD OFFICE
། ?། ། ་། ། ་
C.O.
Reference :-
+885
17 PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
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Undoubtedly however there is strong evidence for European differentiation against this country in goods for the China seas. This is mixed up with the question of Continental railway rates and through quotations (see page 17).
In South Africa the allegations are of a serious character. Differential freights are referred to in detail in Mr. Clarke's evidence in H.C. 346/97, and the publications of the South Africa Mercantile League. There does not seem to be any means of verifying these figures in the Colonial Office.
The Collector of Customs of Natal does not support these strong statements. He reports :-
"There are no differential freights on British and Foreign goods from the same port. Freights are not arranged so as to favour goods from a Foreign port as compared to goods from a British port, but, to enable the British Companies to compete with the German East African line, freights from the Con- tinent are accepted at a rate similar to that charged by the German East African line. Practically this gives the Continental article a slight advantage, but, as I gather, this is forced by the German competition upon the British lines."
He encloses a freight table extracted from the Report (1900) of the Durban Chamber of Commerce which shows rates to Port Natal from Continental ports by all lines to be, per ton.
Class I 52/6
II 40/-
**
III 32/6
"
31
IV 30/-
The rates from London apparently may be either
the same or from 2/6 to 1/3 higher.
The rates from New York are--
Class I 45/-
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II 35/-
III 32/6
"
"
IV 26/3
There is a note to the effect that rates for cement are 2/6 lower from the Continent than from Great Britain "the reduction being brought about by competition of sailing ships."
The legislatures express the opinion that the differentiation is heavy, e.g., see Appendix F.
In Bluebook C. 8449, Cape Colony despatch, a number of instances are given of cheaper freight from America and occasionally the Continent: see page 236 (13 and 14), page 237 (20), page 238 (26).
See also page 256 (Natal).
There is a great mass of evidence for differen- tiation in the Confidential Hong Kong Report. Ten witnesses were examined on this matter and their evidence, with partial exceptions in the case of two, pointed in the same direction. The parts of Com- mittee's summary bearing on this point are as follows:-
"There has been a serious falling off in the imports of metals from Great Britain, notably in that of yellow metal, which formerly was exclusively imported from thence. It is estimated that only about half of the import of this metal now comes
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from British makers, the inferior German metal being greatly aided by the lower rate of freight payable from German ports. The same remarks apply to the trade in bar iron, nail, rod, and scrap iron, most of which is now imported from Belgiumi, the productions of which country are helped by cheaper cost of production and lower freights from Antwerp. Pig lead, which formerly was imported from England and Germany, now comes almost exclusively from Australia on account of lower cost of production.
"The Committee are conscious it may be objected
to the foregoing paragraph that a portion of the evidence does not bear out the statement that dead weight cargo shipped direct from Great Britain arrives here at a disadvantage in freight compared with that shipped from Continental ports. The committee were constrained, nevertheless, to accept the balance of evidence, which unmistakably points to the conclusion arrived at; and to more clearly elucidate the point some tabulated examples of actual shipments have been obtained."
The Committee then proceed to state briefly the causes to which the displacements of British goods in the local market are to be assigned. They include lower freights outwards from foreign as 'compared with British ports," and regret to say that this is due to the action of the Shipping Conference (consisting chiefly of British steamship owners) which, while maintaining freights from British ports, carry cargo at a much lower rate from Continental and American ports, thus giving foreign manufac- tures a virtual subsidy in their competition with British products.
"In this connexion the Committee wish to make special reference to the advantages conferred on American cotton piece goods in the China market by the rates of freight charged by the Conference steamers from New York to Hong Kong and Shanghai, which average from 258. to 308. per ton as compared with 578. 6d. from London and Liverpool outwards. The same remarks apply to the shipment of machinery from the United States to China, the freight for which is about 40 per cent. lower than that from British ports."
The Governor of Hong Kong in reply to the confidential circular states:- The steamers of the
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Conference lines bid for Continental traffic by carrying goods from foreign ports at lower rates "than those granted to British exporters. This I "have heard explained by a statement that the large steamers now used could not secure a full cargo from England, and are obliged to fill up with Continental cargo at lower rates, but, on the other hand I am informed that even at the lower "rates the Continental ports are given priority in shipment. The result is that many British "commodities are being squeezed out of the
Eastern markets.
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"To illustrate the effect of differential rates, "I will take the case of cement, for which there is a large demand in China. English cement is cut "out by Belgium entirely on account of the difference in freight. I have before me an
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