89

Union has always had a clear perception of the different circumstances of tht, two countries and the categorically imperative duties owed by each to its domestic industries and other vital interests. The statement of the Delegation for the United Kingdom mentioned the fact that the emergency tariff at the end of last year and the Import Duties Act of February, 1932, greatly widened the range of imports subject to tariff. This is undoubtedly the case, and it is appreciated that this extension is of some value to the Union. It must be mentioned, however, that the Dominions were not consulted as to the selection of commodities for the imposition of this tariff, nor was there any correlation between these preferential tariffs and the requirements of each industry effected. Greater elasticity in these preferences would have been of greater utility to the Union. It "would have preferred to see a slightly larger margin of preference in favour of certain of the commodities affected, while there are others in regard to which the extension of preferential rates were not so material. The primary function of this Conference in the opinion of this Delegation is to conduct an examination of ways and means by which the state members of the Commonwealth could co-operate in extending our existing markets. It is submitted that this object is not best served by a statement such as that under consideration, which aggregates the trade of the Dominions with Great Britain and consequently reflects a favourable trade balance for the Dominions. As the Delegation for the Union of South Africa have had occasion to point out previously, South Africa is in a peculiar position. The Union has encouraged British imports without insisting on quantitative trade reciprocity and, if the figures are examined in their true perspective, the balance of trade is definitely in favour of the United Kingdom. Table II of the United Kingdom Delegation's statement does not truly reflect the Union's absorption of British goods, nor the increasing market which it has offered those goods. As the figures appearing in that Table do not relate to concurrent periods for the respective Dominions, they are of little value for purposes of comparison. From the eighth place as a customer of the United Kingdom, the Union rose in one year to fourth place, which it at present occupies. In its comments on the Table of Retained Imports into the United Kingdom, 1930 (excluding gold and diamonds), the British Statement stresses the large proportion of imports from the Dominions which still enjoys free entry. It is submitted that the accentuation of this point is disproportionate to the consequential advantage to the Dominions. The United Kingdom takes from the Dominions mostly foodstuffs and raw materials, which in its own interests and in accordance with its fiscal policy have been accorded free entry, and exports to them manufactured articles. In the British Statement attention is directed to the favourable tariff treatment which has hitherto been accorded to imports from the Dominions which compete with goods produced in the United Kingdom. It is presumed that this point does not contain the implication that what was until recently the considered fiscal policy of Great Britain was a concession to Imperial sentiment. The Union has always adhered to the principle that her principal obligation was towards her own producers. Consequently the Union would see nothing unnatural or unreasonable in South African produce being subjected to duties in the market of the United Kingdom for the protection of the domestic produce of the latter. This Delegation could not entertain the suggestion that the United Kingdom should grant concessions which would militate against British domestic industries. But the Union would welcome preference for the Dominions over foreign products. Mention is made further, in the British statement of the help which the United Kingdom has afforded the Dominions in building up a substantial favourable visible balance of trade. While this statement represents the globular result after balancing the figures of trade between the United Kingdom and the Dominions jointly, it is not a true reflection of the position as between Great Britain and the Union. The Union Delegation consider it necessary to draw attention to this aspect of their trade relations especially in view of the rather misleading computation in Table 111, resulting in a considerable balance in favour of the Union. That table does not reflect the true position in that it embraces in the quantum of the Union's imports into the United Kingdom such items as gold, trans-shipments and subsequent exports. Apart from other elements in that statement which tend to magnify its margin of error the inclusion of gold is clearly fallacious. It figures as consumptive merchandise.