SOUTH AFRICAN PREFERENCE.

Auckland Star, Volume LVI, Issue 85, 11 April 1925, Page 6

SOUTH AFRICAN PREFERENCE.

The information available about the new South African preference proposals at the time of writing is not so full as it might be, but it seems to be clear that the changes proposed by the Hertzog Government are not so drastic as had been feared. Preference in British goods is not to disappear altogether. In the past, according to the statement of the Minister of Finance, the preferential tariff has involved a rebate to Britain or £800,000 and to the Dominions of £90.000. That appears to mean that the difference between the average import duty of 15 per cent and the 12 per cent levied on British goods, was represented in the aggregate by these sums. It is now proposed to reduce these aggregates to £300,000 and £50,000 respectively. Other figures in the Ministerial statement cannot be fitted into these, and it would be wise to suspend judgment on the new policy until further particulars are received. It may be pointed out, however, that a reduction in the aggregate of the preference rebate to Britain from £S(iO,000 to £300,000 would mean a loss to Britain of nearly two-thirds of her present advantage in South African markets, where her goods now predominate. The Hertzog Government also announces that the new preferential tariff will be on a "quid pro quo" basis; that is to say, Britain will benefit if she gives prefer-

ence to South African products. Here again more information is needed. The Baldwin Government is pledged. to favour the colonial producer within the limits of its election pledges and it will try to meet South Africa's wishes in this direction. On the other hand, it is rather ominous that the South African Government seeks power to negotiate tariff reciprocity with foreign countries, and it is believed that the proposed changes favour the foreigner considerably. This is the chief danger to the British manufacturer in these proposals. It is the first time a Dominion has broken from - the policy of giving preference to units of the Empire.