87

TABLE III

Note. —The imports shown above are inclusive of goods subsequently re-exported as well as bullion and coin. The figures in table I, which relate to imports of merchandise retained in the United Kingdom, are, therefore, not comparable with the above figures and the large discrepancies in the case of Australia and Union of South Africa are mainly due to the importation of gold from those countries (in 1930 imports of bullion and coin from Australia amounted to £24 million as against £5 million in 1929 and £1 million in 1928. Imports of gold from the Union also showed an upward tendancy in these years). The large erexport trade in primary products imported from most of these countries is also an important factor.

6. From these tables it will be seen— (1) That the visible trade balance in favour of the Dominions is nearly £100 millions: (2) That during the year 1930 imports into the Dominions from foreign countries amounted to nearly £350 millions. 7. In drawing up these tables no attempt has been made to specify the rate of duty charged in respect of importation into the Dominions or the extent of preference accorded to the United Kingdom. It is, however, necessary to bear in mind that the percentage of duty charged on the value of the article is of great importance in assessing the value of a preference. A preferential rate of duty, if the preference is to be of material assistance, must not be so high as, in effect, seriously to restrict importation: and the United Kingdom Delegation would urge upon the Dominions that the rates of duty charged should be so graduated as to give to the products of the United Kingdom a reasonable chance of competing on even terms, and that the rate of duty against United Kingdom products should be fixed for protective purposes no higher than is necessary to give a reasonably efficient industry in the Dominion a fair chance. In this connection they desire to draw attention to the favourable tariff treatment which they have hitherto accorded to imports from the Dominions which compete with goods produced in the United Kingdom. 8. It is necessary also to remember the importance of certainty as affecting trade. In order to enable a manufacturer or importer to carry on business, it is essential that he shall be able to assess with reasonable assurance the cost of the article delivered to the consumer. Anything in the nature of arbitrary or uncertain impositions by means of regulations which leave it to the discretion of the executive to determine the rates of duty to be paid cannot fail to restrict and even to prevent transaction of business. 9. The United Kingdom Delegation desire also to emphasize to their colleagues the fact that the United Kingdom is so highly industralized that it is vital to the physical existence of her people to find adequate markets for her products and that in fact more than half her export trade is taken by foreign countries. There are at the present moment million unemployed persons in the United Kingdom; anything tending to check the foreign exports of the United Kingdom must lessen the purchasing and saving power of her people and so damage the markets on which the Dominions so largely depend for the consumption of their products. 10. The tables given above show that the United Kingdom has been doing her share in encouraging the trade and industry of the Dominions; that she takes a very large proportion of Dominion exports for many of which there

I ... Imports Exports blw? #g £°£ favourable Country (™^ e ***** inion^ Bullion Bullion unfavoured r - d . Dominion Com} Coin) / In Million £ Canada 38-7 31-3 +7-4 Australia 70-5 33-0 +37-5 New Zealand 44-9 18-7 +26-2 Union of South Africa 62 1 27-7 +34'4 Irish Free State 43-1 44-3 -1-2 Newfoundland 2-2 0-9 +1-3 British India 52-0 61-6 -9-6 Southern Rhodesia 2-3 2-6 -0-3 Total 315-8 220-1 +95-7