CO885-(25-26) — Page 606

553

PUBLIC RECORD OFFICE

Reference :-

سيا

HMC.O.

885/25

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

( 116 )

7. It may be that London and Liverpool Chambers of Commerce will be afforded the opportunity of expressing their views on this question and I venture to think they are in a better position to advise than the local authorities.

(c) To what extent, and by what means, the resources of the Empire should, and can be developed.

8. This Colony has lately suffered-temporarily at all events-from the want of transport facilities. and this question may be answered in the light of experience.

What is wanted here for the development of trade is the establishment of direct and rapid land and sea transport services at low rates as is promised in II of C of the Recommendations of the Economic Conference of the Allies.

(d) To what extent and by what means the sources of supply within the Empire can be prevented from falling under foreign control.

9. The least difficult means of securing this end is to penalise foreign agents but this would be a very drastic measure and the principle so revolutionary as to necessitate special mention in the terms of peace and this it may not be found possible to introduce.

E. R.

18th January, 1917.

MINUTE BY THE ACTING COLONIAL SECRETARY, (MR. CHARLES H. HARPER.)

I do not consider that the circumstances of this Colony call for special attention in connection with

the "recommendations of the Economic Conference of the Allies" or with the questions submitted toʻ the Commercial and Industrial Policy Committee.

I have little doubt that the people of the Colony will support any measures considered necessary and desirable for the protection and development of Imperial trade though such support may entail some sacrifice from the native and some gain to the British Trader.

C. H. H.

15th March, 1917

MINUTE BY THE COLONIAL SECRETARY, (MR. A. R. SLATER, C.M.G.)

IMPERIAL COMMERCE AND INDUSTRIAL POLICY AFTER THE WAR.

The Secretary of State asks for a considered statement of the views of the Gold Coast Government on

(a) The Recommendations of the Economic Conference of the Allies (Paris, June, 1916): and (b) The questions submitted to the Commercial and Industrial Policy Committee, so far as the circumstances the Gold Coast appear to call for special attention in connexion with them.

Having regard to the general tenor of the circular and to the terms of the reference governing the deliberations of the Committee I assume that as regards (a) above the Secretary of State only desires views on Resolution C of the Paris Conference, i.e. on the "permanent measures" recommended by the Allied representatives for "Mutual assistance and collaboration among the Allies."

( 117 )

2. Dealing therefore first with Resolution C" of the Paris Conference. The salient part of that resolution is the decision "to take the necessary steps without delay to render themselves--i.e.the Allies— independent of the Enemy countries in so far as regards the raw materials and Manufactured articles essential to the normal development of their economic activities."

Applying this to the Gold Coast: we are not a manufacturing Colony at present and therefore stand in no need of raw materials: we may become manufacturers of palm oil out of palm kernels but if so it will only be with a view to developing our own raw material (ie. palm kernels.)

As regards "manufactured articles essential to the normal development of our economic activities " we are practically independent of enemy countries (vide Mr. Mitchell's memorandum, paragraph 19), but at present this independence is secured at the cost of price and quality in regard to certain articles,e.g. enamel ware (vide Mr. Parker's letter of January 16th, 1917). It seems probable also that the independence will (under existing conditions) only be secured at the cost of increased prices in respect of agricultural imple- ments, furniture, machinery, drugs, chemicals and sugar (vide Mr. Mitchell's memorandum, paragraph 23) and it would seem desirable therefore (as far as the Gold Coast is concerned) that special attention should be devoted to those articles by manufacturers in British and Allied countries, since (having regard to the already high cost of living in this Colony) we cannot be accused of making" cheapness "a fetish.

3. The Conference suggests three principal methods for securing economic independence :-

(a) Enterprises subsidised, directed or controlled by the respective Governments;

(b) The grant of financial assistance for the encouragement of scientific and technical research

and the development of national industries or resources;

(c) Customs duties or prohibitions of a temporary or permanent character.

I am strongly of the opinion that (b)—and perhaps (a) rather than (c)—are the methods most suita- ble for the Gold Coast.

Mr. Mitchell's memorandum has shown that except for a few articles the British manufacturer or the Allied manufacturers (now that America is an ally) have captured nearly all the trade which was formerly .in enemy

hands and if (as I assume) enemy firms are not allowed to re-open in the Colony (at any rate for some considerable period) I see no reason to suppose that any appreciable portion of this trade will revert to Germany and Austria. Except therefore as regards the few articles in which the enemy seems likely to be able to compete successfully in price, or quality, or both, high import duties or prohibition appear to be unnecessary: as to the excepted articles I personally see no reason for wishing to exclude them (at any rate permanently, though the considerations advanced in Lord Balfour's report of 9th November 1916 may justify temporary penalising) as I cannot bring myself to believe that the permanent economic ostracism of any country can be secured without untoward boomerang results.

The particu ar measures to be taken under (b) and perhaps (a) will be more conveniently dealt with when we come to the terms of reference to the "Commercial and Industrial Policy Committee.”

4. In C. II. of the Paris resolutions an "interchange of products" among the Allies is favoured and all measures for facilitating mutual trade relations (with the all important exception of removal of tariffs) are to be taken. As regards the Gold Coast I hope this will mean that serious consideration is given to improving our sea communications "at low rates and by the reduction of postal and telegraphic charges as between the Allies. As regards land transport (i.e. between the Gold Coast and the French Colonies on the West and North) we have so much leeway to make up in respect of our own internal communications that we shall not be able, for a long time to come, to devote attention to improving the communications with our neighbour. (Moreover the policy hitherto has been one of mutual jealousy rather than one of fost- ering mutual trade relations, and any development of trade between the Gold Coast and the Ivory Coast for example has been viewed with misgiving lest the French should 'capture' our Western Frontier trade.)

5. I pass now to the questions propounded to the Commercial and Industrial Policy Committee.

On the first question, viz:—

(a) What industries are essential to the future safety of the nation; and what steps should be taken

to maintain or establish them ?

I cannot usefully offer any remarks.

The second question is

(b) What steps should be taken to recover home and foreign trade lost during the war, and to secure

new markets?

As regards the Gold Coast I doubt whether it can be said that we have 'lost' any trade. Temporarily we lost our markets for palm kernels but the enterprise of British merchants, and the attention devoted to the subject by the home Government, soon resulted in the substitution of a British Market. The specific