SOUTH AFRICA'S CASE

Evening Post, Volume CXIV, Issue 27, 1 August 1932, Page 7

SOUTH AFRICA'S CASE

(British Official Wireless.) (Received Ist August, 11 a.m.)

RUGBY, 30th July. Work at Ottawa is proceeding so satisfactorily that some observers forecast a conclusion of the Conference in the third week in August. The review of Imperial trade issued by the United Kingdom delegation has been received as a valuable contribution to the clearing of the ground. The Committee on financial and monetary questions met yesterday, and a full statement was made by a representative of each delegation. The South African representative explained the reasons for the decision of the Union Government to remain on the gold standard, while the Indian delegate emphasised the fact that the benefits to production and trade of the preferential system might be swept away, unless supported by a monetary and credit policy ensuring stability of general wholesale prices. The Australian representative similarly pointed out the disastrous effect to Australia of falling prices.

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graph—Copyright. . (Ecceived Ist August, 11 a.m.)

OTTAWA, 31st July. Mr. N. C. Havenga, South Africa, has issued a, statement, commenting on the British delegation's pronouncement on 28th July. It says: "The history of- trade relations between Britain and South Africa makes it unnecessary to stress the already clear fact that the idea of striking a balance-sheet, of advantages and concessions is quite foreign to the minds of the South African delegation. Nevertheless, we feel constrained 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 betweert the countries in proper perspective. South Africa has never objected to Britain's treatment of her commodities nor complained of the spirit Britain has manifested in trade matters, nor has she been querulous of the fact that preferential treatment was not always reciprocated.

"South Africa has always had a clear perspective of the different circumstances of tho two countries and of the categorically imperative duties each owes 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 is an extension of some value to South Africa. It must be mentioned, however, that the Dominions were not consulted regarding the selection of commodities subject to this tariff, nor was there correlation between these preferences and each industry's requirements. A greater elasticity in these preferences would have been of greater utility to South Africa. • MARGIN OF PREFERENCE. "South Africa would have preferred to see a slightly larger margin of preference in favour of certain commodities affected, whereas regarding others tho extension, of preferences was not so material. "South Africa submits that a statement such as Mr. Baldwin's does not best .servo the object- of the Conference, namely, examining ways and means of Empire co-operation and extending existing markets. Mr. Baldwin's statement aggregates the Dominion's 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 figures are examined in their true perspective they would show a balance of trade definitely in British favour." Referring to Mr. Baldwin's figures showing • South Africa's . total 'imports for the year 1930: From all sources £63,357,000, from Britain £.29,735,000, from other British countries £6,947,000, from foreign countries £26,675,000, Mr. Havenga says that they do' not truly reflect the Union's absorption of British goods nor the increasing market the Union has offered to those goods. South Africa within one year rose from eighth place compared with other customers of Britain to fourth place, which she now occupies. Mr. Baldwin stressed the large .proportion of Dominion products still enjoying free entry into Britain. Mr. Havenga submits that an accentuation of this point is disproportionate to the consequential advantage to the Dominions. CHARACTER OF TRADE. "Britain takes from the Dominions mostly food stuffs and Taw materials, which in its 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 or unreasonable in her produce being subjected to duties in the British market for the protection of Britain's domestic produce. The delegation would not suggest that Britain grant concessions militating against British domestic industries, but South Africa would welcome preference for the Dominions over foreign products. ''South Africa considers the table showing the Union as having a considerable favourable trade balance is 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 Afiica is looking for outlets for her ordinary commodities, not for gold, and does not find it necessary to offer a large share of her competitive trade to secure an outlet for her gold. South Africa bought from Britain in 1930 more than 2f) millions sterling of commodities, which enter the competitive trade, while Britain bought from South Africa twelve millions sterling of such

goods. This favourable British position in South Africa's competitive trado is a normal position.'' Mr. Havenga suggests an early discussion on the lines on which Britain and South Africa can give mutual assistance.