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PUBLIC RECORD OFFICE

Reference :-

wimmin C.O.885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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trade of the latter country. Under this head the Society would call attention to the importance of the coaling industry of St. Lucia. Owing to its sheltered posi- tion and excellent wharf accommodation, Port Castries affords unique facilities at all times for the cheap and rapid bunkering of steamers; while, as a naval base, it has given abundant proof of its value to the Empire in the course of the War. (b) What steps should be taken to recover home and foreign trade lost during

the War and to secure new markets?

3. The Society has no data to enable it to say to what extent, if any, the foreign trade of the Colony has benefited during the War to the detriment of the home trade. The necessary information will be in the possession of the Government. Towards the solution of this question the Society favours (1) preferential tariffe between all parts of the British Empire and the encouragement of inter-Imperial trade; (2) arrangements between the Allies for reciprocal tariffs between them, and also between them and neutral countries, which will not attempt to exploit them for the benefit of enemy countries, and which will undertake not to form com- mercial alliances with the latter to our detriment and that of our Allies.

(c) To what extent and by what means the resources of the Empire should

and can be developed.

To some

4. This question seeks to solve a problem which will require more thought and consideration than the Society can be expected to bestow upon it. extent the answer to the preceding question may have some bearing upon it. The following are among the remedies recommended, namely, to educate British peoples to a better understanding of the various portions of the Empire, and of its vast and varied resources; to encourage the production of an adequate supply, at a reasonable cost, of the raw material and commodities essential to industry, and to conserve them primarily for the benefit of the Empire; to promote among manu- facturers a more careful and methodical study of the commercial requirements of the British and foreign markets; to give facilities for more scientific treatment of all products of industry, and for the economic distribution of such products; to give facilities by legislation, financial assistance, and otherwise for promoting industrial enterprise and banking within the Empire, for the development and organization of British shipping for improving the means and reducing the cost of communica tion and transport, including cable, wireless, and postal communication, to and from Great Britain and the Dominions and between the Dominions; to facilitate by legislation, financial aid, and otherwise the flow of emigration of British subjects to British countries, and so to conserve British manhood for the nation. But the Society feels that nothing that can be recommended towards the solution of this question will be of any value, to the West Indies at least, until the Mother Country gives up the doctrine that it is better to buy cheap foreign goods fostered by cartels, bounties, and hostile tariffs, than to protect and maintain at a reasonable price those produced within the Empire. Under a different creed our friendly neighbour Martinique has, in spite of disastrous hurricanes and volcanic eruptions, from which we have been happily exempt, developed and prospered exceedingly, while St. Lucia has retrograded or remained stationary and under populated. In this connexion the Society desires to put forward the claims of St. Lucia as perhaps offering sufficient attraction for farming, after the War, to ex-service men with small capital.

(d) To what extent and by what means the sources of supply within the

Empire can be prevented from falling under foreign control.

5. To answer this question satisfactorily more knowledge and capacity than we can aspire to will be required. Certain remedies have been suggested, in addition to those already stated and summarized below, to meet the case, such as (1) a system of permits to foreigners to trade in British countries under stated condi tions and regulations, infractions of which would be visited with severe penalties; (2) the exclusion of enemy subjects from carrying on trade or owning property in British countries. This is a question which will demand care and skill in its con- sideration, to avoid hurting the susceptibilities of neutral nations, and to prevent the diversion to hostile countries of capital which may be inclined to flow into British channels after the War, when British capital will have suffered considerable shrinkage. It is believed, however, that legislation can, and should, be provided for prohibiting enemy products from entering British countries and enemy subjects from trading or owning property therein, at least for some years after the War.

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6 The Society would, in conclusion, venture to give the following brief summary of the main considerations which, in its opinion, should be borne in mind in constructing the commercial and industrial policy and measures to be adopted after the War.

(1) Tariff Reform throughout the Empire, so as to allow of substantial preferen- tial Customs treatment within the Empire for the products and manufactures of the Empire.

(2) Preferential customs treatment to our friends and Allies in return for similar treatment by them throughout their territories, and also to neutrals who reciprocate; but such treatment not to be on the same terms of equality as may be agreed upon between the Allies.

(3) Penal customs tariff against all products and manufactures of enemy countries after a fixed period, and prohibition of imports of all such products and manufactures within that period.

(4) Penal charges against, and disabilities upon, all enemy shipping.

(5) Measures to prohibit or penalize the use of British capital for the develop- ment of enemy industries and enemy countries.

(6) Enemy subjects to be placed under disabilities as regards ownership of land and trading in British countries.

(7) Patent rights of enemy subjects not to be recognized in British countries for some period at least after the War.

(8) Legislative and financial assistance, if necessary, towards the emigration of British subjects to British countries and their settlement on British soil.

(9) Similar assistance to promote industrial and agricultural development, including agricultural banks, so as to render the Empire independent of foreign countries for its requirements, especially for its supply of food and the raw material for its industries.

(10) Similar assistance to develop British shipping and for improving the means and reducing the cost of transport (including cable, wireless, and postal communica- tion) to and from Great Britain and the Dominions and within the Empire.

(11) Equal rights and opportunities throughout the Empire for all British subjects of whatever race or creed.

20821

SIR,

No. 21.

ZANZIBAR.

THE ACTING RESIDENT to THE SECRETARY OF STATE. (Received 23rd April, 1917.)

(No. 26.)

The Residency, Zanzibar, 20th February, 1917. In accordance with the instructions contained in your Circular despatch of the 25th September, 1916,* on the subject of the commercial and industrial policy to be adopted after the War, I have the honour, after consultation with leading officials and representatives of commercial interests, to submit a state- ment of the views of my Government on the recommendations of the Economic Conference of the Allies and on the questions submitted to the Commercial and Industrial Policy Committee.

2. Although you only ask for a statement of views in so far as the circum- stances of this Protectorate appear to call for special attention, I think it may be convenient if, as well, I briefly record the measures already taken under the headings and in the order taken at the Conference.

A.-Measures for the War Period.

A, 1 and 2.-The Trading with the Enemy Prohibition Decree, 1914, and Amending Decrees.

3. The Trading with the Enemy (Statutory List) Proclamation, 1916, made under the Trading with the Enemy Extension of Powers Decree, 1916.

B. Decree No. 14 of 1914, and Amending Decrees.

C.-No system has as yet been established in the Protectorate enabling con- tracts entered into with enemy subjects and injurious to national interests to be

* No. 1.