3
Before 1932 a number of small factories had been established in the colonies. Cotton ginning factories, sugar cane crushing mills, fibre decorticating plants, tobacco grading and packing factories, saw mills and tin smelters had been constructed to reduce the bulk of primary products and make them more convenient for export. Other industries were started for the purpose of import substitution. In almost all the sugar producing colonies sugar refineries had been set up. Edible oil, lard and soap factories were established using local produce in Nigeria, Ceylon, Nyasaland, Trinidad, Jamaica, British Guiana, British Honduras and Fiji. Breweries had been established in the Gold Coast, Kenya, Cyprus, Malta, Jamaica and the Straits Settlements; match factories in British Guiana, Jamaica and Trinidad; a canned pineapple factory in Malaya. This is by no means an exhaustive list of industrial enterprises in the colonial empire in 1932. All these factories had been set up to serve the local market and had taken advantage of tariffs which had originally been imposed by colonial governments for revenue purposes. In some cases this level of protection was sufficient to make the factory viable. In other cases the company contemplating investment asked the governor for the tariff to be increased so as to exclude competitive imports or asked for a guarantee that no excise duty would be imposed or that any excise duty would be levied at a reduced rate.
Colonial governors showed no reluctance to grant these concessions in order to encourage the establishment of local industries in spite of the loss of customs revenue and the increased prices paid by the consumer for goods previously imported. Often governors neglected to seek specific permission from the Colonial Office to make such changes to the schedules of their customs ordinances. In a number of cases the Colonial Office heard of the new protective duties only when British manufacturers complained that they were being excluded from the colonial market. When an industrial project was referred to London governors used various arguments to support the protection of infant industries in their colonies: that the proposal was a legitimate development of local resources; that it would relieve unemployment; that a pledge of protection had already been given by government to the promoters; or that the proposals had the support of the unofficial members of the executive and legislative councils.
Normally the Colonial Office did not refuse to sanction the grant of assistance to the new local enterprise. For example, in 1927 the legislative council of Jamaica passed an ordinance to increase the tariff on biscuits, soap, edible oils, cordage and matches and to remove the excise duty on soap, edible oils and matches in order to protect local industries. The Colonial Office sanctioned this ordinance without any adverse comment. Once an ordinance had been passed by a colony's legislature and had received the governor's assent it
3
Before 1932 a number of small factories had been established in the colonies. Cotton ginning factories, sugar cane crushing mills, fibre decorticating plants, tobacco grading and packing factories, saw mills and tin smelters had been constructed to reduce the bulk of primary products and make them more convenient for export. Other industries were started for the purpose of import substitution. In almost all the sugar producing colonies sugar refineries had been set up. Edible oil, lard and soap factories were established using local produce in Nigeria, Ceylon, Nyasaland, Trinidad, Jamaica, British Guiana, British Honduras and Fiji. Breweries had been established in the Gold Coast, Kenya, Cyprus, Malta, Jamaica and the Straits Settlements; match factories in British Guiana, Jamaica and Trinidad: a canned pineapple factory in Malaya.' This is by no means an exhaustive list of industrial enterprises in the colonial empire in 1932. All these factories had been set up to serve the local market and had taken advantage of tariffs which had originally been imposed by colonial governments for revenue purposes." In some cases this level of protection was sufficient to make the factory viable. In other cases the company contemplating investment asked the governor for the tariff to be increased so as to exclude competitive imports or asked for a guarantee that no excise duty would be imposed or that any excise duty would be levied at a reduced rate. Colonial governors showed no reluctance to grant these concessions in order to encourage the establishment of local industries in spite of the loss of customs revenue and the increased prices paid by the consumer for goods previously imported. Often governors neglected to seek specific permission from the Colonial Office to make such changes to the schedules of their customs ordinances. In a number of cases the Colonial Office heard of the new protective duties only when British manufacturers complained that they were being excluded from the colonial market. When an industrial project was referred to London governors used various arguments to support the protection of infant industries in their colonies: that the proposal was a legitimate development of local resources; that it would relieve unemployment; that a pledge of protection had already been given by government to the promoters; or that the proposals had the support of the unofficial members of the executive and legislative councils. Normally the Colonial Office did not refuse to sanction the grant of assistance to the new local enterprise. For example, in 1927 the legislative council of Jamaica passed an ordinance to increase the tariff on biscuits, soap, edible oils, cordage and matches and to remove the excise duty on soap, edible oils and matches in order to protect local industries. The Colonial Office sanctioned this ordinance without any adverse comment.* Once an ordinance had been passed by a colony's legislature and had received the governor's assent it
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