The Press Wednesday, December 9, 1931. South Africa and the Empire.

Press, Volume LXVII, Issue 20415, 9 December 1931, Page 10

The Press Wednesday, December 9, 1931. South Africa and the Empire.

General Smuts's confident words this morning about the future of the Empire are the more convincing because they carry with them a warning. Being a political realist, General Smuts is worried about the coming Imperial Economic Conference, which has become the centre of high and vague hopes. An Imperial economic union offers in prospect many attractive advantages; but South Africa offers an example of the obstacles in the way. Her trade treaty with Germany—of which General Smuts gives a reminder —practically prevents her from negotiating' an Imperial tariff. The eighth clause of this treaty, dealing with preferential rebates, continues South Africa's existing preferences on Empire goods but makes it necessary to cancel the treaty if any further exclusively Imperial preferences are granted. Unfortunately, cancellation is a political rather than an economic question. The treaty with Germany was in part a gesture to the world; it called attention to the independent national status of South Africa, recognised at General Hertzog's request by the 1926 Imperial Conference. The treaty was opposed by General Smuts and the South African Party on the grounds that it would bring little commercial advantage, and declared, in effect, that South Africa would not give any further special preferences to countries within the Empire. The unhappy result is that the treaty, having become alm&st an article of political faith with the Nationalists, is unlikely to be considered on its commercial merits; but the treaty is not the only problem that will embarrass South Africa at the Imperial Economic Conference. Of her total exports, gold accounts for over 50 per cent., diamonds account for 13 per cent., and neither of these commodities can very well be made the subject of preferential duties. Of the rest, most are raw materials for industry, which Great Britain is least likely to tax and can hardly be expected to. Of her total export trade, only the remainder, about 2 per cent., is suitable for preferential duties. Realities such as this sit very heavily on the hope of an Imperial Zollverein's emerging from the Conference. But this does not mean that the Conference will in reality have nothing to do. It means merely that it will have to work, not on grandiose projects, but on a detailed examination of the resources and needs of the various parts of the Empire, and on the most practical—and profitable—channelling of its trade.