AFRICA'S CASE.

Auckland Star, Volume LXIII, Issue 180, 1 August 1932, Page 7

AFRICA'S CASE.

PREFERENCES GIVEN. Union Delegation Criticises British Statement. NO CARPING SPIRIT. (United P.A.—Electric Telegraph—Copyright) (Received 11.30 a.m.) OTTAWA, July 31. Hγ. N. C. Havenga, South Africa, has issued a statement regarding the British delegation's pronouncement of Thursday. He says that the history of the trade relations between Britain and South Africa makes it unnecessary to stress the fact, already clear, that the idea of striking a balance-sheet of advantages and concessions is quite foreign to the minds of the South African delegation. Neverthelees the delegation feels con 1 strained to offer comments on some of Mr. Baldwin's observations and deductions, doing so not in a carping, ungenerous spirit, but in a frank effort to see the trade relations between the countries in a proper perspective. South Africa has never objected to j Britain's treatment of her commodities nor complained of the spirit which Britain manifested in trade matters, nor has she been querulom of the fact that preferential treatment was not always reciprocated. South Africa always had a clear perspective of the different circumstances of the two countries, and of the categorically imperative duties each ovves to its domestic industries. South Africa admits that Britain's emergency tariff at the end of 1931, and the Import Duties Act of 1932 greatly

widened the range of imports subject to tariff, which -extension was of ■ some value to South Africa. It must be mentioned, however, that the Dominions were not consulted regarding the selection of commodities which were subject to this tan_, nor was there any correlation between tViese preferences and each industry's requirements. South Africa's Peculiar Position. She would have preferred to have seen a slightly larger margin of preference in favour of certain of the commodities affected, whereas regarding others the extension of preferences was not so material. South Africa submits that a statement such as Mr. Baldwin's does not best serve the object of the conference, namely, the examining of ways and means toward Empire co-operation and the extending of existing markets. Mr. Baldwin's statement, it ie contended, aggregatts the Dominions' trade with 'Britain and consequently reflects a favourable trade balance for the Dominions. South Africa's position is peculiar. She has encouraged British imports without insisting on quantitative trade reciprocity, and if the figuree were examined the true perspective would show that the balance of trade was definitely in British favour. r Referring to Mr. Baldwin's figures showing South Africa's total of imports for the year 1930 from all sources as £63,357,000, from Britain £29,735,000, from other' British countries £0,047,000, and from foreign countries £20,675,000, Mr. Havenga saye that these do not truly reflect the Union's absorption of British goods, nor the increasing market the Union offered those goods. South Africa, with one year, rose from eighth place compared with other customers of Britain to fourth place, which it now occupies. Mr. Baldwin stressed that a large proportion of Dominion products wae still enjoying free entry into Britain and Mr. Havenga submits that accentuation of this point is disproportionate to the consequential advantage to the Do-

minions. Britain takes from the Dominions mostly foodstuffs and raw materials, which in ite own interests, and in accordance with its fiscal policy, have been given free entry. Britain's exports are manufactured articles. South Africa would see nothing unnatural and unreasonable in her produce being subjected to duties in the British market for the protection of Britain's domestic produce.

Preference Over Foreign Askea.

The delegation would not suggest that Britain should grant concessions militating against British domestic industries, but South Africa would welcome preference for the Dominion over foreign products. South Africa considers that the table showing that the Union had a considerable favourable trade balance was misleading, because it includes gold among the consumptive merchandise, and also transhipments and subsequent exports. South Africa uses more than twice as much British merchandise as Britain uses South African merchandise. Inasmuch as South Africa has an insufficient amount of commercial bills in Britain to pay for what she buys there, she is compelled to pay for a portion in cash. South Africa is looking for outlets for her ordinary commodities not for gold, and does not find it necessary to offer any large share of her competitive trade to seoure an outlet for her gold.

South Africa bought from Britain in--1930 more than £29,000,000 worth of commodities which enter the competitive trade, while Britain bought from fcoutn Africa £12,000,000 of euch goods. This favourable British position in South Africa's competitive trade is the normal position, and Mr. Havenga suggests an early discussion on the line on which Britain and South Africa can give mutual' assistance.