491
PUBLIC
RECORD OFFICE
C.O
Reference :--
885/25
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
82
con-
cancelled unconditionally. I am not aware of the existence of any such contracts, but it nevertheless appears advisable to issue legislation covering such a tingency, and I should be glad if I might be supplied with a copy of any such legislation as may have been enacted elsewhere.
II.
All business undertakings owned or operated by enemy subjects are in course of liquidation under authority of the Trading with the Enemy Decree, 1916 (No. 16 of 1915).
III.
The local list of contraband and export prohibitions is issued under instructions from your office.
B.-Transitory Measures for the period of Commercial, Industrial, Agricultural, and Maritime Reconstruction of the Allied Countries.
II.
I presume that the pronouncement as to the termination by war of all treaties of commerce between the Allies and Enemy Powers does not affect the position in regard to the Zanzibar treaties as stated in the second paragraph of the despatch of the 2nd of June, 1915, from the Under-Secretary of State for Foreign Affairs to the Under-Secretary of State for the Colonies, copy of which was enclosed in Mr. Bonar Law's despatch, Zanzibar, No. 88, of the 23rd of June, 1915,* but having regard to Viscount Grey's agreement in the view that the specific abrogation of the German and Austrian treaties should form one of the terms of peace, it may be assumed that Zanzibar will be in a position to withhold most-favoured-nation treatment from the Enemy Powers for such period as may be determined by the Allied Governments.
I venture to remind you also of the importance both to this Government and to that of East Africa of getting rid of the clauses in the treaties with the Allied and Neutral Powers which tie the hands of these Administrations, and I would suggest that any arrangement with France should include the removal, so far as the Allied nations are concerned, of the tariff against foreign goods imported into Madagascar which now hampers trade between Zanzibar and that Colony.
III, and IV.
The point to be considered appears to be whether it will be more advisable to impose a prohibitive tariff or only a protective tariff against imports from enemy countries. To arrive at a conclusion it is necessary to ascertain whether Zanzibar can obtain from Allied and neutral countries the goods hitherto imported from enemy countries, and also whether Zanzibar can sell in Allied or neutral markets the exports which enemy countries have hitherto taken from Zanzibar. following are the values of the principal articles imported from Germany and Austria for 1913. The trade with Turkey is so small as to be negligible.
Principal Imports from Enemy Countries, 1913.
Beads
Beer
Articles,
From Germany.
From Austria.
F
The
Tots! Imports from Percentage of tota
from all countries.
enemy countries.
£
£
450
1,809
4,080
56
492
713
69
Crockery
2,886
248
6,567
46
Sugar
11,561
1,146
81,143
40
Provisions
923
7,608
12
Groceries
1,253
28,897
5
Hardware
8,577
361
28,308
18
Miscellaneous
4,600
1,633
48,205
12
Perfumery
844
1,448
58
Piece Goods
5,941
1,518
191,028
B
Wire
381
886
49
*25835: not printed.
83
It is agreed that the whole of the above imports can be obtained from Allied countries at prices which compare favourably enough with those previously paid. This being so, it is clear that Zanzibar will not be injured by the complete exclu- sion of imports from enemy countries, and that there is therefore no reason why a prohibitive tariff should not be enforced against all such imports.
As regards exports, the following are the figures of those to enemy countries for the year 1913.
Articles.
Principal Exports to Enemy Countries, 1913.
To Germany.
To Austria.
Total to all
countries.
Percentage of total
to enemy countries.
£
£
£
Cloves
104,849
6,718
Clove Stema
18,006
28
412,547
16,146.
27
80
Copra
1,778
216,841
*Cowrie Shells
1,605
1,770
90
8,507
8,890
41
6,720
12,596
58
5,194
39,856
13
920
4,485
20
!
*Gum Copal *Hides
...
*Ivory *Tortoise Shells
SÅ LÅEBER
The figures given above are taken from the Customs returns, and denote the value of the exports shipped to Hamburg, the port of consignment, whence a portion of them were probably reshipped to other countries.
It will be seen that the only items which it is necessary to take seriously into account are cloves and clove stems. I am informed that of late extensive factories for the manufacture of perfumery, in which a large amount of the oil of cloves is used, have been erected in India and China, and colour is certainly lent to the statement by the fact that of the first crop during the season 1916-1917, estimated at 100,000 bales, 41,000 have gone to Indía. The American market has, moreover, shown a tendency to increase, and the price has been fairly well maintained during the War.
In these circumstances there appears to be no cause for anxiety as to the measures which Germany may see fit to take by way of retaliation for the means adopted locally to prevent her merchandize from entering this Protectorate.
Before the outbreak of the War the greater part of the shipping between this coast and Europe and India was in the hands of Germans. It is suggested that the raising of the port dues from one anna to eight annas per registered ton in the case of enemy ships would effectively prevent their return. I observe, however, from the last paragraph of IV. that this is a matter which will be settled by His Majesty's Government.
It will be well for me here briefly to detail the requirements of this Protec- torate in so far as steamship facilities are concerned. It is in the first place of primary importance that there should be available a fast service, via the Suez Canal, of cargo steamers of moderate size, say, 6,000 tons.
It is possible that, in view of the probability that British shipping companies will not in future have to compete with a heavily subsidized foreign line, such as the Deutsche-Ost-Afrika-Linie, there may be ample inducements in the way of freight and passengers to secure such a service. but, should this prove not to be the case, I am of opinion that it would be well worth the while of this Government, provided that the Governments of East Africa, Uganda, and the lately conquered territories were willing to co-operate, to contribute a reasonable sum annually by way of subsidy towards the maintenance of such a service. In addition to the foregoing it would be a great convenience, both from a postal and passenger point of view, if advantage could be taken of the regular Peninsular and Oriental mail service to the East by the establishment of a fast connexion between Aden and Zanzibar. To such a service I consider that this Government would, if necessary, be justified in giving financial support, relatively, of course, to the benefits to be derived. It occurs to me that the Peninsular and Oriental and British India Companies, who are now working in conjunction, might, if they have not already
• In transhipment from German East Africa.
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