creation of protected local industries could be justified only where the colony had natural advantages for the development of an industry and where it was likely eventually to be profitable without protection. However, regard should also be paid to the principle of trusteeship and where the commercial interests of Britain and the general economic well-being of the colony were in conflict, colonial interests should prevail. These ambiguous recommendations gave the Colonial Office a considerable area of discretion to determine whether or not a colony should be allowed to institute a protective tariff or provide other assistance to a proposed new industry.
These recommendations did not affect the situation in Hong Kong and Singapore, where Chinese entrepreneurs were successfully exporting shoes and other goods manufactured from imported raw materials without the assistance of any protective tariff. Their home market was small compared to their export markets and they could easily undercut any foreign competitors. The committee regarded the invasion of the British and dominion markets by cheap rubber shoes produced by oriental labour as an evil, but it opposed the imposition of import duties on colonial manufactures since the Ottawa agreements had granted entry free of tariffs to all imports from the dominions and India; discrimination against colonial products would undermine the principle of free trade within the empire and call into question the preferences and privileges which the colonies had extended to imports from Britain. Instead of tariffs on colonial manufactures the committee recommended that efforts should be pursued to assimilate conditions of employment and factory and workshop regulations to those in force in Britain by the adoption of the International Labour Conventions by the colonies. The committee also suggested the encouragement of negotiations between manufacturers in Britain and in the colonies to divide the market by the assignment of quotas between them.
Cunliffe-Lister welcomed the report in spite of the rejection of his idea of protection for British manufactures against colonial competition. The report was circulated to the cabinet for the information of ministers but objections were unexpectedly raised by the secretary of state for India and the chancellor of the exchequer. The main doubt was whether the report went far enough in recommending the discouragement of new industries in the colonies. So the report was remitted for further consideration by another committee, but nothing was done for three years. In the meantime the Colonial Office proceeded to act on the principles recommended in the report. Instructions were sent to all colonies that any proposal to protect a local industry must be referred to London at the earliest possible stage and no bill to impose or increase a protective tariff should be introduced into the legislative council without prior authorisation by the colonial secretary. Telegrams were sent to the governors of Singapore and Hong Kong asking
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creation of protected local industries could be justified only where the colony had natural advantages for the development of an industry and where it was likely eventually to be profitable without protection. However, regard should also be paid to the principle of trusteeship and where the commercial interests of Britain and the general economic well-being of the colony were in conflict, colonial interests should prevail. These ambiguous recommendations gave the Colonial Office a considerable area of discretion to determine whether or not a colony should be allowed to institute a protective tariff or provide other assistance to a proposed new industry.
These recommendations did not affect the situation in Hong Kong and Singapore, where Chinese entrepreneurs were successfully exporting shoes and other goods manufactured from imported raw materials without the assistance of any protective tariff. Their home market was small compared to their export markets and they could easily undercut any foreign competitors. The committee regarded the invasion of the British and dominion markets by cheap rubber shoes produced by oriental labour as an evil, but it opposed the imposition of import duties on colonial manufactures since the Ottawa agreements had granted entry free of tariffs to all imports from the dominions and India; discrimination against colonial products would undermine the principle of free trade within the empire and call into question the preferences and privileges which the colonies had extended to imports from Britain. Instead of tariffs on colonial manufactures the committee recommended that efforts should be pursued to assimilate conditions of employment and factory and workshop regulations to those in force in Britain by the adoption of the International Labour Conventions by the colonies. The committee also suggested the encouragement of negotiations between manufacturers in Britain and in the colonies to divide the market by the assignment of quotas between them.
Cunliffe-Lister welcomed the report in spite of the rejection of his idea of protection for British manufactures against colonial competition. The report was circulated to the cabinet for the information of ministers but objections were unexpectedly raised by the secretary of state for India and the chancellor of the exchequer. The main doubt was whether the report went far enough in recommending the discouragement of new industries in the colonies. So the report was remitted for further consideration by another committee, but nothing was done for three years." In the meantime the Colonial Office proceeded to act on the principles recommended in the report. Instructions were sent to all colonies that any proposal to protect a local industry must be referred to London at the earliest possible stage and no bill to impose or increase a protective tariff should be introduced into the legislative council without prior authorisation by the colonial secretary. Telegrams were sent to the governors of Singapore and Hong Kong asking
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