CO885-(25-26) — Page 555

513

TUL

PUBLIC RECORD OFFICE

Reference :-

fimic.o.

885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH—NOT TO

126

23. German and Austrian Goods-These figures refer only to goods coming through the Custom House and do not include imports by Parcel Post, which are shown separately in the Parcel Post section.

One of the principal articles is not shown at all on this return, viz., jewellery and silver articles, because they were not, as a rule, imported as merchandize, but were either sent by Parcel Post or more often imported as personal effects of German commercial travellers. From information collected, we gather that the total value of the imports of jewellery in silver and gold articles was, on an average, £18,000, eighty per cent. of which came from Germany.

24. The return is divided into three classes, viz.: foodstuffs, raw materials, and manufactured goods.

25. Foodstuffs.-With regard to the figures under this heading, only malt extracts, potatoes, spirits, and sugar are the produce of Germany and Austria. The other articles are products of other countries shipped to Malta from a German or Austrian port. The figures for coffee represent exclusively orders placed at Trieste with an Austrian firm having a branch at Rio Janeiro. From the Customs returns we find that a very large proportion of this article (seventy-five per cent.) is classified as imported from Brazil. but such goods came principally via Trieste on the steamers of the Adria Navigation Company. The figures given for rice show transhipments at German ports, but an equal quantity used to be tran- shipped at Rotterdam, for Malta, almost exclusively on German ships. The above remarks with regard to coffee and rice bear out what we have already stated in paragraph 16

Fiume and Trieste before the War were considered as the leading Mediter- ranean export centres of sugar, and our proximity to those ports, as well as the extraordinary shipping facilities afforded to shippers and consignees alike by the Adria, contributed to confine our sugar trade almost exclusively in Austrian hands. Part of this trade was diverted to Hamburg, but at all events was always in enemy hands.

This trade, now that the Brussels Sugar Convention has been abolished, will certainly be diverted to other producing countries such as Egypt, Russia, etc.

26. Wood and Timber. This is a natural product, and it does not appear that any diversion of trade is possible.

27. Manufactured Goods.-The figures demonstrate that there has been a steady increase in imports from Germany.

28. We consider that the success of German and Austrian firms in some articles is mainly due to:-

(a) The system of adapting their goods to the requirements of the markets they supply and to their readiness to alter patterns and sizes to meet the demand for any article however small the value.

(b) Austrian and German experienced commercial travellers visiting this place regularly once or twice a year, while British representatives rarely come.

(c) The cheapness of the articles

(d) The facilities of transport existing in Germany and Austria, because in both countries through bills of lading are granted from inland towns to any part of the Mediterranean. including Malta. thus saving forwarding agents' charges at port of shipment and also ensuring a more direct method of trading between customer and supplier. This undoubtedly has had a substantial effect on the increase of German shipping (paragraph 16) as well as on the increase of the sale of German Guides explaining the advantages of this system goods in the island.

We annex a German are circulated broadcast amongst customers. sample of this method of advertisement, the Austro-Hungarian system being identical. Subsidized German steamers regularly calling at this vort accented goods for inland German towns, as the system applied both to the goods exported from and imported into Germany. We suggest that Your Excellency he pleased to call the particular atten- tion of the Secretary of State for the Colonies to this matter of through bills of lading, as it is undoubtedly responsible for the vast increase of German influence and trade in all Mediterranean ports, so great as to enable a big German shipping company (Deutsche Levante Linie) to keen a large fleet of steamers exclusively for the German Mediterranean trade and to be able to oust British goods owing to the facilities of transport.

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30. In the jewellery line all silver articles, such as jardinières, table centres, and other so-called objects of art, are exclusively imported from Germany. The silver frames and cigarette-cases are manufactured in Birmingham, but, in order not to prejudice their trade, German firms obtained the representation of the Birmingham firms, thus avoiding direct communication between the British manufacturing firms and traders in Malta.

31.

The Parcel Post rates also favour German trade. The British system is, as a rule, on a triple scale of 3 lb., 7 lb., and 11 lb.; the German and the whole Continental system is of a uniform rate for any weight not exceeding 11lb. Such rate from Germany was, before the War, 2s. 1d. via Italy, and 18. 104d. via France. The triple scale has only an apparent advantage for small parcels, but, as a matter of fact, it is always at a disadvantage. The 1s., 2s., and 3s. rate is only by the all-sea route; even by this route the 2s. and 3s. are by far in excess of what is paid for Parcel Post to Germany via France. As a matter of fact, the sea route being fortnightly, it presents delays and disadvantages as compared with the overland route, and, when the latter route is chosen, even a parcel of 3 lb. is more expensive than the German uniform rate of up to 11 lb., because there is a surtax of 18. on each parcel. We recommend that the matter should be put before the Post Office authorities in England and at Malta to remove the anomaly and thus further British interests. The advantage of the German system is shown by the fact that, whilst at Malta Parcel Post with England is rarely used for trade proper except in a few articles, Parcel Post with Germany exclusively represents trade proper. As many English firms have established the system of sending goods on approval, the difference against England in the parcel rates is doubled. The advantages in rates to Germany may be shown from the fact that, whilst during the last complete year for which statistics are available (1913-14) the manufac tured articles imported from Germany amounted to nine per cent. of the total, the Parcel Post imports amounted to 15-3 per cent.; and it must be remembered that this represents actual trade, whereas most of the parcels received from the United Kingdom, consist of presents, etc., sent from home to naval and military people resident in the island. Although the number of parcels received from England is considerable, still this number has remained stationary, practically, for the last four years immediately preceding the War; whilst the number of parcels received from Hamburg has trebled during the same period (see Post Office Annual Reports, 1910-11 to 1913-14).

32. We notice that parcels for Egypt are subject to a lower rate of postage than parcels to Malta, and vice versa.

The rates to Egypt are:

All sea route

To Malta:-

All sea route

3 lb.

1s,

1s.

7 lb. 1s. 9d.

11 lb. 2s. 6d.

28.

3s.

Egypt (via France)

18. 9d.

2s. 3d.

2s. 9d.

Egypt (via France and Italy)

28.

2s. 6d.

Malta (via France and Italy)

28.

39.

Overland route :---

This difference should be removed.

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48.

33. German and Austrian goods should certainly be, as far as practicable, substituted by British goods, including, of course, under such a denomination our own manufactured goods and those of other Colonies and possessions. This can be done :

(a) By bringing to the notice of British merchants what goods are especially in demand in these islands, and to this effect we recommend that the local Government make an annual grant to the Chamber of Commerce in order that the Chamber may have a special official to send quarterly to the Board of Trade samples of foreign goods largely in demand in these islands; the same official to be entrusted to send to the Board of Trade samples of local produce and manufactures. The Chamber of Commerce would, through that official, be at the disposal of the Board of Trade or of any Chamber of Commerce within the Empire for purposes of reciprocity of trade.