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Straits Settlements, but not to Hong Kong. The governor protested to the Colonial Office at Hong Kong's exclusion in 1907, 1910 and 1912 but the Canadian government refused to include Hong Kong within its preferential tariff on the grounds that goods from China might be shipped through Hong Kong's open port and fraudulently obtain the benefit of Canada's preferential tariff." So Hong Kong's exports of cement and refined sugar were taxed at the highest rate and soon lost their market in Canada. In 1912 a trade agreement was negotiated between Canada and the West Indian colonies whereby Canadian exports were granted preferential tariffs in return for Canadian preferences on Caribbean cane sugar, cocoa beans and lime juice. The West Indian colonies negotiated this trade agreement directly with Canada and the secretary of state for the colonies raised no objection. These preferences were increased by a new trade agreement in 1920 and were generalised to benefit goods from all empire sources.20 The Colonial Office invited all colonies and protectorates to consider the practicability of introducing preferential rates of duty for goods of imperial origin. But most of the colonial empire was prevented by international treaties from imposing discriminatory tariffs. Northern Rhodesia, Kenya and Uganda, being part of the Congo Basin, were forbidden to discriminate by the Convention of St. Germain (1919); Nigeria and the Gold Coast by the Anglo-French treaty of 1898; and Tanganyika, Togoland, Cameroons and Palestine were mandated territories of the League of Nations which prohibited discrimination. By 1932 the only colonies which were free to adopt imperial preference but had not done so were Somaliland, Ceylon, the Straits Settlements, Hong Kong and certain islands in the Pacific." Canada and New Zealand were the only dominions which granted any preferences to the colonial empire before 1932. Australia, South Africa, Newfoundland, Southern Rhodesia and India granted none.
The world trade depression which began in 1929 convinced British politicians that the liberal principles of free trade which had been followed for the past 70 years must be abandoned. The National government elected in 1931 quickly passed the Import Duties Act which imposed a general duty of 10 per cent ad valorem on all imports. Section 5 of the act granted an entire exemption from the general duty to imports from all colonies, protectorates and mandated territories, provided that at least 25 per cent of the value was derived from materials grown or produced or from work done within a part of the empire." Imports from the dominions and India were exempted from duty only until November pending the outcome of an Imperial Economic Conference." A circular despatch was sent by the Colonial Office to all colonies and protectorates drawing attention to the great advantages extended to the colonies by the Import Duties Act and inviting them to give similar preferences to United Kingdom manufactures
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Straits Settlements, but not to Hong Kong. The governor protested to the Colonial Office at Hong Kong's exclusion in 1907, 1910 and 1912 but the Canadian government refused to include Hong Kong within its preferential tariff on the grounds that goods from China might be shipped through Hong Kong's open port and fraudulently obtain the benefit of Canada's preferential tariff." So Hong Kong's exports of cement and refined sugar were taxed at the highest rate and soon lost their market in Canada. In 1912 a trade agreement was negotiated between Canada and the West Indian colonies whereby Canadian exports were granted preferential tariffs in return for Canadian preferences on Caribbean cane sugar, cocoa beans and lime juice. The West Indian colonies negotiated this trade agreement directly with Canada and the secretary of state for the colonies raised no objection. These preferences were increased by a new trade agreement in 1920 and were generalised to benefit goods from all empire sources.20 The Colonial Office invited all colonies and protectorates to consider the practicability of introducing preferential rates of duty for goods of imperial origin. But most of the colonial empire was prevented by international treaties from imposing discriminatory tariffs. Northern Rhodesia, Kenya and Uganda, being part of the Congo Basin, were forbidden to discriminate by the Convention of St. Germain (1919); Nigeria and the Gold Coast by the Anglo-French treaty of 1898; and Tanganyika, Togoland, Cameroons and Palestine were mandated territories of the League of Nations which prohibited discrimination. By 1932 the only colonies which were free to adopt imperial preference but had not done so were Somaliland, Ceylon, the Straits Settlements, Hong Kong and certain islands in the Pacific." Canada and New Zealand were the only dominions which granted any preferences to the colonial empire before 1932. Australia, South Africa, Newfoundland, Southern Rhodesia and India granted none.
The world trade depression which began in 1929 convinced British politicians that the liberal principles of free trade which had been followed for the past 70 years must be abandoned. The National government elected in 1931 quickly passed the Import Duties Act which imposed a general duty of 10 per cent ad valorem on all imports. Section 5 of the act granted an entire exemption from the general duty to imports from all colonies, protectorates and mandated territories, provided that at least 25 per cent of the value was derived from materials grown or produced or from work done within a part of the empire." Imports from the dominions and India were exempted from duty only until November pending the outcome of an Imperial Economic Conference." A circular despatch was sent by the Colonial Office to all colonies and protectorates drawing attention to the great advantages extended to the colonies by the Import Duties Act and inviting them to give similar preferences to United Kingdom manufactures
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