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PUBLIC RECORD OFFICE

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6564

SIR,

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No. 6.

WEIHAIWEI.

THE COMMISSIONER to THE SECRETARY OF STATE.

(No. 43.)

(Received 5th February, 1917.)

Government House, Port Edward,

Weihaiwei, 15th December, 1916 I HAVE the honour to acknowledge the receipt of your Circular despatch of the 25th September last regarding the commercial and industrial policy to be adopted after the War, and enclosing a copy of the recommendations of the Economic Conference.

2. There are no enemy firms established in Weihaiwei, and there do not appear to be any special circumstances affecting this Territory which demand the special attention of the Conference.

3. It seems to me that the best course for this Territory to follow would be to adopt any scheme that may be decided upon for the, Colony of Hong Kong.

I have, &c.,

J. H. STEWART LOCKHART,

Commissioner.

3411

(No. 44.) SIR,

No. 7.

SIERRA LEONE.

THE SECRETARY OF STATE to THE GOVERNOR.

[Answered by No. 17.]

Downing Street, 5th February, 1917. I HAVE the honour to acknowledge the receipt of your despatch No. 526, of the 30th of December,† regarding commercial policy after the War.

2. With reference to paragraphs 12 to 19, I should be glad to learn whether there is any definite evidence of the existence of a combine of European merchants in Sierra Leone. Although Sierra Leone kernals are worth at least £1 per ton less than Lagos kernels, the prices paid to natives in Sierra Leone are considerably higher than those paid to natives in Nigeria, where a combiné undoubtedly exists. 3. I should also be glad to learn the grounds of your view that palm products are the produce of State lands and may be regarded as the property of the State. That view is contrary to the principles on which Government policy has hitherto been based.

I have, &c,

10736

No. 8.

NIGERIA

WALTER H. LONG.

THE GOVERNOR-GENERAL to THE SECRETARY OF STATE.

(Received 27th February, 1917.)

(No. 68.) SIR,

Government House, Nigeria, 5th February, 1917.

I HAVE the honour to acknowledge receipt of your predecessor's Circular despatches of 25th September and 24th October, 1916, asking for the considered views of this Government (in so far as the circumstances of Nigeria are concerned) on the recommendations made by the representatives of the Allied Governments at the Conference held in Paris on 14th June, and on the matters dealt with in the questions put to Lord Balfour of Burleigh's Committee by the late Prime Minister.

+ No. 4.

Nos. 1; and 45879, not printed.

* No. 1.

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2. I was invited to consult with representative bodies and persons in framing my reply, and I took the opportunity of placing the matter before the Nigerian Council, which includes the Executive Council and the most representative unofficials.

3. I attach a report of the debate, together with a letter which has since been addressed to me by Mr. Canning, containing a draft of the speech which he would have wished to deliver had he been present at the debate. The ship on which he travelled out to Nigeria arrived too late for the meeting of Council.

4. I submit the following propositions as my considered views on behalf of this Government, indicating to what extent divergent views were expressed on each of the different headings:-

(a) The Government of Nigeria cordially endorses the recommendations of the representatives of the Allied Powers at the Paris Conference. This was the pur- port of my introductory motion, and was carried unanimously.

(b) In reference to the first question, "What industries are essential to the future safety of the nation, and what steps should be taken to maintain and estab- lish them?" I submit that, as regards exports, there are three products (which together form about seventy-five per cent. of the exports of Nigeria) which are essential to the safety of the nation in time of war, viz.: oil and oil-producing seeds and nuts; hides and skins; and cotton. I invited the Council to record its cordial concurrence with the measures already proposed by His Majesty's Govern- ment with the object of establishing the crushing trade in palm kernels in the United Kingdom, viz., by the imposition of an export duty at the port of export on all kernels crushed outside the Empire, to which may be added the territories of our Allies. Also that the work of the British Cotton Growing Association deserved every encouragement, both by the home and the local Government. There was no dis- sentient opinion, and the view expressed may, I think, be considered to have met with unanimous approval. The duty in the case of kernels could be withdrawn if it were misused to further a monopoly and decrease the local purchase price.

(c) In regard to imports, and the question whether they can better assist "in developing the resources of the Empire," I submit that it would be of great benefit to the industries of the Empire if the importation of "trade spirits," which are manufactured in Germany and in Holland (largely from German materials), were replaced by articles more calculated to raise the standard of life and comfort, and to increase the output of the industries from which the people derive their wealth. I submit, further that, since it is in conjunction with our Allies that we propose to take steps to develop our economic position and independence in relation to enemy Countries," they should be invited to co-operate by taking such steps as may be feasible and judicious to give effect to this policy.

(d) I submit that a healthy competition and rivalry in the supply of shipping is as essential for efficiency, and as vital to the interests of shippers and trade, as in any other branch of commercial energy, and that should necessity arise Nigeria should ask the assistance of His Majesty's Government in promoting this object, with a view to develop the natural resources of this country. This proposal also inet with unanimous approval.

(e) I submit that, though we have full confidence in the energy and ability of the British merchants in Nigeria, who are stated to have ample capital at their disposal, it is to the interest of Nigeria, in common with the rest of the Empire, that the traditional policy of the open door" should not be replaced by one of exclusive privilege as against the foreigner; that Allies and neutrals should be welcomed, and the introduction of their capital facilitated under stringent safe- guards, to prevent the recurrence of the abuse of the freedom accorded, and the entry, under any disguise, of enemy interests during the period of commercial recon- struction and for as long a period after it as the international situation may demand; that such a policy is advantageous alike for trade and development, and for securing the good will of the world, which would be alienated by a policy of exclusion that, in order to secure the full and effective operation of this policy, any neutral who acquires any real property with a view to establishing a business in Nigeria, should, during the reconstruction period, be required to register the company in the United Kingdom, and be subject to such rules in regard to the con- stitution of the directorate and the personnel of the local agents as may be con- sidered advisable, and in particular shall be subject to such conditions in regard to the acquisition of real estate as appear under the next heading.

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The foregoing proposal is based on the conviction that it will be neither possible nor advantageous to the Allied Powers to exclude the present enemy sub- jects from the commerce of the world, but to ensure that during the reconstruction period neither they nor any neutral on their behalf shall control any business in Nigeria, and that in the further future no foreigner shall be able to exploit our own markets against us so as to establish monopolies in essential products on which the safety of the Empire depends, or control the sources of supply of such products. This policy, I submit, does not violate the cardinal principle of tolerance, being in no way in restraint of legitimate trade, or such as we should resent if imposed on British subjects in foreign colonies, except in so far as enemy subjects are concerned, In regard to this submission, I where it is by way of penalty for past misuse. would desire to add that I propose with diffidence the clause requiring registration in the United Kingdom-even though restricted to the reconstruction period-as involving issues on which I am not sufficiently informed. This proposal naturally gave rise to some divergent views, but I venture to think that a perusal of their speeches will lead to the conclusion that the dissentients had failed to appreciate fully the emphasis laid on the safeguards which I propose. Mr. Ajasa opposed the principle on grounds which can only be explained on this hypothesis. Mr. Evans (Elder Dempster) declared his support of Mr. Ajasa, but, like him, mainly on the grounds of exclusion of German interests. He contended, however, that British capital was amply sufficient, and raised the point of reciprocal facilities for British enterprise in Allied and neutral colonies, in which Mr. Maidman supported him. Mr. Miller spoke in the same sense, but again in relation to German trade. He deplored the importation of cheap imitation goods from Germany instead of better-class articles from England. All the senior officials were apparently in general accord with the views I had expressed, Mr. Boyle in particular expressing his adherence. Cameron pointed out that Clause V. of Table B apparently did not contemplate the exclusion of enemy firms, even during the reconstruction period, provided they were not engaged in certain specific industries. The Attorney-General did not consider that the conditions applicable to the United Kingdom would affect any recommen- dations in this connexion made in regard to the circumstances of Nigeria. Judging by the speeches, I think I may claim a unanimous support by officials, and that the dissentients among the unofficials based their case chiefly on the exclusion of German trade, which was already contained in my proposal.

Mr.

(f) I submit that no present enemy subject should be allowed to acquire any title to real property during the period of reconstruction, and as long thereafter as the international situation may demand; that no foreigner should be allowed to acquire real property, whether from Government or from private owners, except on leasehold the conditions to be verified by Government if Government is not the lessor--and to include safeguards to prevent transfer to enemy subjects or use o their behalf, or the recurrence of such abuses as were effected by Germany; the land to be used for the bona fide purpose for which it was acquired.

This proposal was accepted without comment, except by the Attorney-General. who was of opinion that foreigners should be allowed to acquire freehold property, but only under the authority of an Ordinance. He also suggested that no lease to a foreigner should exceed twenty-one years, except with the approval of the Secretary of State, and that the right of foreigners to acquire leases (or exclusive prospecting licences which carry the right to acquire leases) of minerals which are essential for national defence should be restricted. Mr. Canning endorses the latter sugges- tions, with which I fully concur.

(9) I submit, finally, that the development of Nigeria and other parts of the Empire which are large producers of raw materials can be substantially promoted by the local use of local products, with the object of saving revenue for the construc- tion of railways, roads, and ports, and for the improvement of the products by scientific research and experiment, thus adding to local wealth and industry, while not decreasing, but only changing, the character of the imports from the United Kingdom. The proposition received unanimous approval. Mr. Maidman, in his substituted speech, supported the introduction of an all-British trade-mark.

5. In submitting these views on the recommendations of the Conference and have not the questions addressed to Lord Balfour of Burleigh's Committee, attempted to do more than very briefly indicate the views expressed by the speakers

15

in the Nigerian Council, which are attached in extenso, and which it would be impossible to summarize in the compass of a despatch.

I have, &c.,

Enclosure in No. 8.

F. D. LUGARD,

Governor-General.

EXTRACT FROM PROCEEDINGS OF NIGERIAN COUNCIL. 29TH DECEMBER, 1916.

THE COUNCIL REASSEMBLES AT 11.0· A.M. Motion by Governor-General.

THE PRESIDENT-I move the following motion

"

That the Council do take into consideration the circular issued

by the Secretary of State on 25th September (printed in the Gazette of 9th November), and records its hearty adherence to the recommendations of the representatives of the Allied Powers at the Conference in Paris on 14th June, 1916."

Printed copies of the circular referred to in the motion, together with the recommendations of the Economic Conference at Paris and the questions put by the Prime Minister to the Committee presided over by Lord Balfour of Burleigh, have been laid on the table, and have been in the hands of honourable members for some little time. You will see that the circular asks for the considered opinion of this Government on the complex questions dealt with in these papers, after consulting representative persons and bodies.

There is no more representative assembly in Nigeria or in West Africa than this Council, and I rejoice that I have such a means at my disposal of ascertaining the views of the representative persons who form it. I trust that those views will be freely expressed alike by official and unofficial members. If representatives of the large commercial firms neglect the opportunity afforded them of expressing their views they cannot justly complain later if the policy adopted is not what they would desire. The motion I have moved commits the Government to no policy, and every official member will therefore be entirely free to express his personal views without any fear of opposing the Government. The views I shall myself lay before you are my own personal views-and on questions so intricate as those we are about to discuss I cannot expect that they will be shared by all my official colleagues. We know that members of the Cabinet at home differ profoundly upon them. Our task, however, in discussing this subject to-day is immensely simplified by the fact that we are only invited by the terms of the circular to express opinions on these large questions in so far as they affect the particular circumstances of Nigeria.

I have endeavoured to place in the hands of as many members as possible & rough draft of the observations which I am about to make in order that they should have time to consider them in view of any speeches that they may desire to make, but if any honourable member should desire that the meeting should be adjourned, in order to give further time for consideration, I shall be glad to accedo to his wish if I find that it has any general support.

In speaking to this motion I shall endeavour to indicate a few points which suggest themselves to me from a consideration of these papers, and which may well form the subject of discussion-honourable members will no doubt, bring forward many other points--and in dealing with each branch of the subject shall briefly state the views I hold myself.

The representatives of the Allied Powers met in Conference at Paris in June last to discuss certain questions of economic policy in regard to the Central Powers of Europe with whom we are at war. You will no doubt recollect that the prompting motive of this Conference was the well authenticated report that the Enemy Powers intended, after the War, to combine in a commercial league hostile to the interests of ourselves and our Allies. As in the war of arms, so in the proposed war of commerce, they are the aggressors. The representatives of the Allied Powers formulated certain recommendations to their Governments. These recommenda- tions are divided into three parts. Part A refers to measures to be taken during the War. In regard to matters which fall under this section we have no initiative here; all such measures are necessarily in the hands of the Imperial Government.