CO885-(6-7) — Page 250

PUBLIC RECORD OFFICE

Reference :-

C.O. 885

6

PUBLIC RECORD OFFICE, LONDON

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

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produce of the United Kingdom any preferential treatment as to Customs duties without such treat- ment being also extended to Belgium and Germany, and through them to other countries which have ordinary most-favoured-nation clauses with Great

Britain.

In these circumstance the question arises whether

it is desirable-

(a.) To endeavour to obtain the abrogation of

Article XV. of the Belgian Treaty and of

S

Article VII. of the Zollverein Treaty separately, without the denunciation of the entire Treaties;

OT

:

(b.) Failing the abrogation of these particular clauses alone, to denounce the Treaties them- selves, which can be done by giving twelve months' notice.

45. In regard to the separate denunciation of these Articles, it may be stated that both the Belgian and German Governments have been asked whether they would consent to the abrogation of 'these particular clauses without the rest of the Treaties being terminated, and the reply in both cases was to the effect that the clauses could not be denounced apart from the rest of the Treaty.

46. Her Majesty's Government have no` Treaty right to demand the abrogation of these Articles separately, and in view of these replies, there would

evidently be no use in further approaching either Government in this direction; and the only method of getting rid of these clauses would be the denuncia-

tion of the Treaties themselves.

47. Such denunciation would be a step of the greatest gravity, and whilst Her Majesty's Govern- ment are fully alive to the desirability of removing any Treaty stipulations which may hamper the action of the Colonies in regard to trade relations, they cop- sider that the advantages to be derived from such a step should be very clearly shown to outweigh the disadvantages before it could properly be resorted to., 48. It has been shown above that the United Kingdom could, if it were at any time judged proper,

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grant preferential terms to Colonial produce without infringing the particular articles in question, and fur- ther that the British Colonies could also grant prefer- ential treatment to each other without infringing them

as they are interpreted by Her Majesty's Govern- ment. The only point, therefore, which remains for consideration is, whether the advantages to be derived from permitting the United Kingdom to enjoy preferential treatment in the British Colonies

is sufficient to outweigh the disadvantages to the Empire of the denunciation of the entire Belgian and and Zollverein Treaties.

49. The following figures may serve to indicate generally how the interests of the United Kingdom

are affected.

The annual value of the exports from the United Kingdom, according to the Statistical Abstract, may be roughly estimated as having been in 1893-

To Germany To Belgium

Total -

£

28,000,000

13,000,000

· £41,000,000

The value of exports from the United Kingdom

to all the self-governing Colonies for the same year may be roughly estimated at 35,000,000%. (India' not included).

The comparison would not be quite the same if account were taken of the exports of British and Irish produce only. Here it would seem that the exports from the United Kingdom to British self- governing Colonies exceed the exports to Belgium and Germany. The self-governing Colonies, more. over, being geographically distant, the exports to them give proportionately more employment to ship- ping than do exports to adjacent countries like Belgium and Germany. But the exports to Belgium and Germany are undoubtedly important in them-

selves.

50. The denunciation of the Treaties with Belgium and Germany would thus expose the trade of the United Kingdom to some risks, and might possibly

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