1918-06-21 — Page 7

AFTER-WAR TRADE.

STATE AID FOR INDUSTRY,

MODIFIED PROTECTION.

PROPOSED TARIFF BOARD","

THE HONGKONG DAILY PRESS. IRIDAY, JUNE 21ST. 1918.

As to the measures which should be adopted during the transitional period, the Committee reaffirm the main recom. mendations of their interim report, пашему :

14

in which some restrictions or safeguards competent to voice the opinions and needs may be necessary, adéquate security can of their. vapective trades us a whole. is a rule be ensured by requiring disclo Every encouragement should be given sure of the facte. Such occupations as by the Government to the formation of those of pilot and patent agent should, combinations of manufacturers and others Important proposals for securing the (4) The prohibition of the importance of however, be confined to British-born sub-concerned to secure supplies of materials, inture maintenance and expansion of goods of enomy origin should be continued, jests, in view of the special opportunities British commerce and industry are sul subject to licence in exceptional cases, for they afford for obtaining information

at least twelve months after the conclusion affecting national security. mitted in the final report, of the Com

of the war, and subsequently for such further

Consideration should be given to the mittee on Commercial and Industrial

period

as may be deemed expedient. Belion after the War, presided over by

question whether foreign commercial (b) The Paris resclutions relating to the travellers operating in the United King Lord Balfour of Burleigh. The inquiry, supply of the Allies for the restoration of dom should not be registered and requir. extending over some eighteen months, their industries c

can be carried into effected to hold licences, for which ferg would has covered a wide field. It may be re- if a policy of joint control of certain in- be charged, which could, however, bere called that in February, 1017, the Con-portant commodities can be agreed upon bemitted in the case of travellers represent mittee recommended the adoption of the principle of preference for Dominion products and manufactures, and that they subsequently, presented interim reports, outlining the trade measures which should be adopted during the transitional period following the conclusion of hosti- lities, and the steps which should be taken to ensure the preservation of key

Aindustries.

In the present Report the conclusions embodied in these interim reports are re capitulated, and the Committee further submit detailed recommendations dealing with the following, among other subjects :

Fiscal policy. Development of Imperial resources, and the conservation of Empire rus rate rials,

Internal reorganisation of industry, and the assistance to be rendered by the State in promoting it.

Financial facilities for trade and the bearing of taxation on industrial develop

ment.

It is pointed out that the prolongation of the war and the entry into it of the Trentiunt of enemy and other allens United States have increased the import in commercial and industrial occupations.anco of a considered policy directed In regard in two other questions towards assuring to the British Empire weights and measures and coinage the and the Allies adequate supplies of essen Committee are unable to recommend any tial raw materials during the period im changes.

mediately following the conclusion of Shipping policy after the war is not peace that the extent to which the Paris dealt with in the Repor, but, in view of resoltious which bear upon this vital the world shortage of tonnage, the Com-question can be carried into effect dependa mittee express the opinion that, whilst upon the cooperation of the Governments it may be desirable to impose for a limit. concerned. ed period some restriction on the use of British ports by enemy vessels, and policy which might tend to check the use of our The Committee recognise that in addi. ports by foreign shipping generally tion to the foregoing proposals it will be would be inexpedient. They however, necessary to continue for some period urgs that, in arcoklane with the Paris after the war some portion of the control Conference resolutions; the exaction of of home end foreign trade, in order par reparation in kind from remy countries ticularly to secure to the country ade should in the interests of the reconstruc.quate supplies of foodstuffs and raw tion if industry and our Mercantile materials for industry and their fair dis Marine, be carried out a fully as maytribution. But they recommend that such be practiuple: --

CONTROL OF RAW MATERIALS.

dues

that legislative action-for the prevention of dumping be taken in the United Kingdom on the lines (though not neces Barily in the precise form) adopted in Canada, but they say no reason why tho anti-dumping duty should be restrict ed, as in that Dominion, to 15 per cent It should be equivalent to the full dif ference between the selling price and the fair market value, however large that difference may be

As to the further measures which should

be adopted to secure the objects set out above, the Committee state that it was urged in many quarters that the simplest method would be the establishment of a comprehensive tariff scheme covering the whole range of imports into the United Kingdom, and worked out on the general lines adopted in other great industrial countries.

Un full consideration the majority of the Committer came to the conclusion

mally be regard as valid, unless the in- dustry which makes it enn show that, in spite of the adoption of the most efficient technical methods and business organisa. tion, it cannot maintain itself against foreign competition or that it is hinder from adopting these methods by such competition.

2. There are some large branches of production, such as the main branches of the cotton trade, in which there is no demand for any uncusure of protection.

3. The primary object of State policy should be the development of industries of importance to the nation! security and well being, and any State action directed against industrieg which do not contribute appreciably or at all towards the increase of the national wealth would be economically unsound

4 Any State action likely to raise prices, even temporarily, for any com modities of national importance, should be confined within the closest possible. limits,

That a strong and competent board, with an independent status, should be established to examine into all appli cations from industries for State assist. anco, to advise His Majesty's Govern- ment upon such applications, and, where u cato is made out, to frame pro- posals as to the precise mature and extent of the assistance to be given.

Before

recommending tariff protec tion for any particular industry it should be the duty of the board to con sider forina of State assistance other than, or concurrent with; protective duties, such as bounties on production, preferential treatment (subject to an adequate standard of quality and secu- rity against price rings) in respect of Government and other public authority contracts, State financing Resistance and also whether the position of the industry could not be improved by m ternal organisation,

The board should also have constantly in mind the anfeguarding of the in- terests of consumers and of labour, and should make recommendations as to the conditions which for these purposes. should be attached to any form of Government assistance whetherby means of a tariff or otherwise.

THE DECIMAL SYSTEM The committee's main conclusions with regard of weights and measures and coinage may be briefly stated,

They consider that an attempt to make, the ung of the metric system universal and obligatory in this country would cause great loss and confusion at a par ticularly inopportune moment for the sake of distant and doubtful advantages, and, so far from assisting in the re-establish- ment of British trade after the war," would seriously hamper it.

Any scheme involving the abandonment of the scremign as the standard and working unit of international exchange would he fraught with risks which i would he unwise to incur

and that, where it appears expedient that the control of mineral deposits in foreign countries should be obtained, all practicable support should be given

In regard to production they think that the constructive action must come from the industries themselves, but, in order to facilitate the necessary organisation recommends and el of many industries on a larger scale, they That an authority should be set up which tween the British Empire and the Allies ng frms of such countries as do not should have the right, after inquiry, to Any measures should aim at securing to the travellers.

on. British commercial grant compulsory powers for the acquisition British Empire and the Allied countries

of land for industrial purposes and the The registration of title to property diversion or abolition of roads or footpaths. priority for their requirements, and should should be made compulsory over the whole That there should be a judicial body with be applied only to materials which are main of the United Kingdom, and such regis-compulsory powers to deal with the quer 1. derived from those countries and will be tration should involve a declaration of tion of wayleaves required for the develop required by them. This policy should be the nationality of the owner or transferes, ment of mineral royalties and thọ ccono- applied as regards the United Kingdom by in order to enable the Government to mical working of collieries and mines. legislation empowering the Government to decide whether in any particular casu While it is recognised that the forina- prohibit this export except under licence of national security requires the expro-tion of organisations for marketing in that it was not necessary or expedient to such articles as may be deemed expedient,priation of foreign interests respect of overseas trade will stimulate adopt this proposal, for reasons which and as regards the British Empiro and

While the Committee are unable to the creation of combinations for the con- they thus summarise: Allies countries the Government should, support the proposal that every limited trol of domestic sales, the Committee be-1. A claim for protection connot no-

lieve that such devlopment is not only without delay, enter into negotiations with company should be required to include in the various Governments concerned, with its annual return to Somerset Houso A desirable in some cases, but practically view to the adoption of suitable joint meg statement of the amount of its stock or inevitable under modern conditions, and Mures in the use of selected commodities of shares beld by aliens, they recommend that the attitude of public opinion, of that the Board of Trade should have local authorities, and the State, which importance.

The Government should consider in con-power to make an investigation in cases has hitherto been antagonistic, must be sultation with the Allies, the expediency of where alien control might be undesirable, modified. They consider moreover that, establishing after the war a joint organist and where there is ground for suspecting so far from being adverse to the interests tion on the lines of Commission Inter- its existence to an undue extent

of labour, combinations of employers art nationale de Ravitaillement, for dealing In the Committee's opinion, it would on the whole beneficial to the workers in with the orders of the Allied Government for be unwise to enter on a policy of check- the trade affected in respect of rates of reconstruction purposes, and with such pri ing the establishment or continuance of wages, steadiness of employment, and vate orders us they may find it expedient to the agencies or branches of foreign banks other matters. centraliso,

or insurance companies in Great Britain They think that it would be inexpedi although these should be required in ent for the Government to enter upon future to take out, annual licences. any policy aiming at positive control of Foreign insurance companies should be recombinations, but that it is desirable that quired to make a deposit proportionate, some means should bo devised for to the business done by them, and steps securing to a responsible Government should be taken to prevent foreign banks department adequate information as to from evading the income tax,

the foridation of combinations, and that The Committee consider that for a provision should be made for State

Institute of Bankers, the Associated To the proposal now supported by the - period after the war it will be necessary investigation in special casek. At the

Chambers of Commerce, and the Decimal to imposs special restrictions on the same time, combinations should, where

Association for the decimalisation of the subjects of the present enemy countries, necessary, be legalised so as to be enforce and that this can best be done by means able between members. Recommends. It is of paramount importance that wils, the mil being worth 4 per cent. sovereign, which would consist of 1,000 of stringent permit and police regulations are accordingly submitted to this our export trade should not be hampered less than the existing farthing, it is ob tions

and,

by any policy, which might unduly injected that the crux of the question is Subject to such safeguards, they do not On the question of the provision of crease the cost of production in this the alteration of the value of the penny, think it will be necessary or practicable, financing facilities for finding purposes country, is compared with the cost in and, having regard to the magnitude of except possibly for a short period. In the Committed are of opinion that tifere other countries; and a more limited tariff the disturbance which this change would STCcial cases, to attempt to prevent pre- is room for an institution or institutions could be used equally well, though not cause in the lives of the great body of seat enemy subjects from establishing the object of which is to co-ordinate und

80 extensively, for granting Imperial wage earners, retail shop keepers, and agencies, or holding interests in supplement previously existing financial Preference and also for the purpose of their customers, we are satisfied that the commereal or industrial undertakings facilities, and they welcome the establish negotiation with foreign countries. At introduction of such a change would ha generally in Great Britain. In par ment of the British Trade Corporation. tention is directed to the expediency of inexpedient at a time when the social, in- tienilar, we think that it would be im tion is drawn to the inadequacy of considering measures of Imperial Predustrial, and financial organisation of practicable and expedient to impose the urgent demand which will arise after ference other than the imposition of the country will be faced with numerous in restrictions or discriminations as the war for capital for the re-establish differential Custom duties, as,

for and exceptional difficulties, regards the uss of London insurance, or ment of industry on a peace basis will be example, Government contracts to pur reinsurance facilities. Any such measures profoundly affected by the policy of the chase for a term of years at guaranteed could only result in shifting the inter- Government in regard to taxation, the minimum prices part of the whole of the 3. Protective Customs duties or other

loss, not only on the London market, but foreign exchanges, and they recommend importance or financial assistance from natonal sentre, and would inflict scrious currency, and the maintenance of the output of materials of great industrial Government assistance to carefully select. ord branches of industry regarded as supporting in respect of the numerous

Any attempt to make the Empire self on the country as a whole."

that these matters should be the subject the Home Government towards the deyo-May 20 at 12-Nocturna from Japany of early inquiry by the Treasury in colopnent of Imperial resources. essential to the country.

Vladivostock and the Philippines. Pressure raw materials for which we are, wholly

sultation with representatives of banking Preferential treatment for the or mainis dependent on foreign count In a previous report the committee sub and commerce. As a general rule, they wholly or partly manufactured articles reporting stations; the depressions remains As to the argument that a tariil on be increased slightly at the majority of Dominions

tries would, in the Committee's opinion, mitted proposals for the maintenance and think it would be undesirable that the would be a substantial source of revenue, over Torgking. 5. Utilisation, if possible, of Customs be neither practicable nor economically development of industries essential to State itself should attempt to provide it is pointed out that on the basis of duties in promoting trade with Allies and sound. They think that a selective policy national safety and indispensable to im capital for industrial purposes. Atten-imports in 1913 an average ad valorem 6. Establishment of a strong independ to relative importance, whether indus before the war were in enemy hands or the allowances for depreciation of machino the likely to yield more than a very will be necessary, which shall have regard portant British trades industries which tion is drawn to the industrial purposes, rate of duty even of 10.15 per cent world

from industries for State assistance, whe supply and the likelihood of their dis which were the subject ci recommends come-tax, and it is recommended that, the und a far-reaching change of fiscal policy thor by protective duties or otherwise."

turhance in time of war, They doubt if tions were on Treasury should take immediate steps to could not be justified Lord Faringdon, Sir C. Henty, Sir the proposals of the Dominions Royal Synthetic dyes, spelter, tungsten, revise the scales. Gerard Muntz, Sir C. Parsons, and Mr. Commission for the establishment of a

grounds. Bu magnetos, optical and chemical glass,

COMMITTEE'S CONCLUSIONS. Scoby Smith consider that these pro single Development Board to deal with hostery needles, thorium nitrate, limit posals do not go far enough, and suggest this problem (and with certain other and screw gauges, and certain drage.

On the whole question of fiscal policy that a general ad valorem tariff of 10 matters is immediately practicable, and In respect of dyes and spelter the

the Committee's conclusions are as fol per cent. should be imposed upon all suggest that it would be possible to make Government have already taken action.

lows:-- wholly or mainly manufactured articles mere rapid progress by dealing separately

Since no general measure will suffice to imported into the United Kingdom with a number of special commodities or mect the varying requirements of the Sir Alfred Booth objects generally to groups of commodities. phan several industries concerned the com- the fiscal proposals, and Bir Clarendon-

It is noted that the Board of Trade mittes repeat their recommendation that Hyde, Mr. AF. Pense, and Sir have already set up a Comittee to investia permanent Special Industries Board Williamson, M.P.--who does not sign the gate the question of the supply of catton should be established, charged with the report-are opposed to the giving of go within the Empire, and the Committee luty of watching the course of industrial tection by tarifig to selected branches of recommend that special inquiries should development and of framing from time industry

he instituted on these lines as regards to time, when necessary, either on its own ench commodity which may be selected for initiative or on the application of in- ANSITIONAL MEASURES.

treatment. The object to be kept in view terested departments or persons, detailed From a survey of the general position should be that the Empire may be capable schemes for the promotion and assistance of British industry and overseas trade in in an emergency of being independent of industries concerned with the produc-removed, and their recurrence guarded 1013, the last complete year of peace, the in respect of the supply of every essential tion of commodities of the special charac committee find that in long-established commodity of any single foreign countrytre indicated. manfactures with the important excep- or possible combination of foreign coun- As regards our industries generally, it tion of the iron and steel trades, British tries. They further recommend that in is apparent from the evidence before the industry had shown in the decade preced- there inquiries advantage should be taken Committee that there is a widespread ing the war great vitality and power of of the organisation which already exists feeling tha a reconsideration of our extension, but that in the rise and ex- at the Imperial Institute, and that a industrial and trade organisation has pansion of the more modern branches of small independent committee should be become necessary in consequence of the industrial production the United King- appointed to consider to what extent and increasing intensity of foreign com dom had taken only a limited share. in what manner the Institutc can be made petition, and the lines on which it, ik Certain branches of production, of great most effective for the purpose.

conducted. That competition is bascu importance as a basis for other manu As regards alien interests, in Imperial | largely on a system of combination in factures, had come to be entirely or very sources of supply, some Government con- respect of production and distribution largely under German control, and in trol will, it is suggested, be necessary in which has hitherto made comparatively numerous branches of industry cutside respect of a limited number of com- little progress in the United Kingdom: the great staple trades, foreign competi-modities of vital military importance. There is a considerable body of opinion, tion had become increasingly acute, and| Apart from this limited class of cases, the with which the Committer are in general foreign manufacturers had secured a Committee thing it would be unwise to agreement, that the individual manufac strong, or even predominant, position." aim at the exclusion of foreign (other turer and merchant will find it increas In oversens trade British merchants than present energy) capital from sharing ingly difficult to keep abreast of technical and manufacturers were encountering

progress to meet effectively the competi- energetic and successful competition,

tion of powerful foreign consolidations This is ascribed by the Committee to a

and combinations, operating as these do variety of causes, including the adoption

under a single guidance and with great by foreign merchants and manufacturers

financial resources. It is in their view, of methods of organisation and distribu-

necessary that in some important direc tion different from, and in some cases (b) That mineral and other proporties are tiens the individualistic methods hitherto markedly more effective than those hith not weared by foreign concerns in order to mainly adopted should to supplemented erto pursued by British traders

prevent the development of those proper or entirely replaced by co-operation and ties, end to check competition in supply, no-ordination of effort in respect of

The report proposes:

1. Action against "dumping. 2. Maintenance at all hazards of "ker" industries

are of

neutrala,

restrictive measures should be kept within the narrowest possible limits, and that, wherever practicable, the trades concerned should be entrusted with the authority working of the control under Government

KEY

WEATHER REPORT.

N.B. No westi er rap will braved swing to lack of telegraphic roturar.

Bengkong rainfall, for 24 hours ending at 10 LE, today, "022 inch. Total mines, let

23 37 inobe

ent board to deal with all applications trial or military, and to the sources of under enemy control. The commodities nery and plant in the assessment for in few million pounds a year in revenue, January 36,91; inches, against sa average ot

in the development of the Empire's mate rial resources Legislative powers should, however, be taken to secure

(a) Complete disclosure, as far as is prac- ticable, of the extent of foreign holdings in any particular case. NA

and

1. The securing of supplies of mate ofrials, of

Owing to the abnormal conditions due to the war, whilst an amount of foreign trade very large in value has been main- (c) That in the case of commodities of tained, its character and directions have great Imperial importance, the local Govern. been altered in many respects. War re- znent concerned should have some measure of quirements have enormously increased our control over the working of the properties. productive capacity in certain great These principles, if accepted, should branches of industry, notably the steel be brought to the notice of the Govern and chemical trades, and in numerous ments of other parts of the Empire, with directions British manufacturers have a view of the adoption of a uniform shown mach adaptibility and resource policy. fulnces. The Committee believe that the knowledge and experience gained during

ALIENS IN BUSINESS;

2. Production, in which we include standardisation and scientific and ing dustrial research; and

3. Marketing.

ORGANISATION AND

LON AND FINANCE. _____ Discussing the lines on which indus trial and trade combination may be developed, and the attitude which the State should adopt towards it, the Com-

FISCAL QUESTION.

revenuo

The forest for fan 14 heure adding at noon lo-day, is as follows yo

DISTRICT

· FÖR AND AGAINST A TARIFF. Coming to the important qucation of a revision of our fiscal policy, the Can mittee state that a reconsideration of the whole problem is made inevitable by the fact that, whilst the economic strength of the country has so far burne with remark- able success the stram upon our materialed goods, by which term we under and financial resources resulting from an unparalleled war, certain defects in, and dangers, to, the great fabric of British trade and industry have been revealed; and by the further fact that in their opinion those defects and dangers can be

The producers of this country are Hongkong to Gay Rock entitled to request from the Govern- ment that they should be protected in their home market against "dumping and against the introduction of sweat-

against, only by a fresh examination af what has hitherto been our national policy. They lay down the following pro- positions, which they believe will meet with general acceptance:

1. Some Governmental action should be taken to promote and safeguard the development in the United Kingdom of industries of a special or pivotal character (ie., industries on which other and large branches of industrial production of substantial national im portance are dependent), or which, whilst essential for munitions purposes, are not of sufficient commercial import anco to ensure their development with out such State assistance

2. Some Government assistance should be given to industries, other than those mentioned above which are important for the maintenance of the industrial position of the United Kingdom, where such assistance is proved to be neces aery because of the inability of the in- dustries to maintain and develop them. selves by reason of undue foreign com- petition, inadequate supplies of raw materials, or any other causes.

3. A serious attempt should be made to meet the declared wishes of the Dominions and Colonies and of India for the readjustment and development of their economic relations with the United Kingdom.

4. An effort should also be made to develop trade between the British Empir and our Allies.

Formeia Channel

FOINCANT.

Fouth winds, mo derate; clondy Laum's rain. (Theme AN:

No Li

South Ceart of Chieskoinen/The same no

Hongkong and Kawatekst: No. L.

•No. 1.

stand goods produced by labour which is not paid at trade union rates of wages, where such rates exist in the 8th Cuit of Chins: between, The samo country of origin of the goods, or the

Hoogkong and Bainan. 1 current rates of that country where there are no trade union rates. We re commend that action be taken in regard to dumping on the lines (though not necessarily in the precise form) adopted in Canada.

N

2. Those industries which we have described as "key" or "pivotal " should be maintained in this country at all hazards and at any expense.

3. As regards other industries, pro tection by means of Custome duties or Government assistance in other forms should be afforded only to carefully selected branches of industry, which must be maintained either for reasons of national safety or on the general ground that it is undesirable that any industry of real importance to our economic strength and well-being should be allowed to be weakened by foreign competition, or brought to any serious extent under alien domination or con-

4 Preferential treatment should he ecorded to the British Oversen Domin ions and Possessions in respect of any Customs duties now or hereafter to be imposed in the United Kingdom, and consideration should be given to other forms of Imperila Preference.

5. As regards our commercial rela tions with our present Allies and neutrale the denunciation of existing commercial treaties is unnecessary and inexpedient, but the present oppor tunity should be taken to endeavour

BONGEONG METEOROLOGICAL

EEGISTER

Hongkong Observatory, June 204h -

Barometer va oursinns Humidity Wind Direction,

Fares Weather

Previode On Date On Date

Dayat at at 2pm m I pa

29.82 29 $1 29.84 79

South Bouth

1

019

78 fe Senth

0:23

Highest open-air Temperature on 19th 78- Lowest open fr Temperature em 2ith. 77

DAYE O

to promote our trade with our Allies, and consideration should be given to Fd. the possibility of utilising for purposts of negotiation with them and prevent Satur. neutrals any duties which may be in posed in accordance with the principles Su laid down above,

HONGKONG TIDE TABLE

From Flat to 27th June, 1918

HIGE WATEL

Month

F'kong

Time:

ዘ

LOW WATER.

Bkong

Mean

21 6 2764 G

8 18 227668

Haight

234

22 m 7 10 | 7 2 m) 13 3 0 85439 3310 6 8:20 7 6 159 | 30 0.36 940n 03

26

5. Subject to agreement with our Allies in the matter, present enemy countries should not, for a time at feast, be allowed to carry on trade with the British Empire in the same un In view of the danger that the admis. Mon. the will be a most valuable asset, and they On importent question of the par-mittee, in the first place, express the restricted manner as before the wars or son of the Pastel, tony riverine to Tse 25 9 3.73 m 2.20 1365 urge the vital importance of every effort ticipath / of aliens generally in comer opinion that it is very desirable that in on terms equal to those accorded to to a limited extent, may give rise to a on the part of both employers, and co- cial and industrial occupations in the all important British industries- there Allies or neutrals

widespread demand for similar assistant Wed 23m 94779 3 15 13 94 ployed to attain the largest possible United Kingdom, the Committee express should exist, strong, comprehensive, pad With regard to dumping," the Com-from other industries, and consequently volume of production in order to escure the opinion that it would not be desirable well-organised associations, which should mittes do not consider that such drastic to an amount of political pressure which Thurs. 27 10:33 7 7 m 367 29 the speedy recovery of our industrial and to impose any special restrictions. They be clearing houses of information of measures na probibition or confiscation it may be very difficult to resist, the Com financial position.

hold that, in the limited number of cases common interest and opened be would be expedient. They recommend mittee further recommend:

1717840 M

0.007