AFRICA’S POSITION

Waikato Times, Volume 112, Issue 18703, 1 August 1932, Page 7

AFRICA’S POSITION

MR HAVENGA’S OUTLINE FIGURES CRITICISED, BRITAIN'S FAVOURABLE BALANCE, United Press Assn.—Elec. Tel. Copyright. (Received August 1, 9.45 a.m.) i. OTTAWA, July 31. Mr. Havenga (South Africa), has Issued a statement commenting on the British delegation’s pronouncement on Thursday in which he says:— “The‘history of the trade relations between Britain and Soiifch 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 I feel constrained ttf 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 their proper perspective. No Complaints Made, " South Africa never objected t<s Britain’s treatment of iher. commodities, nor complained of the spirit Britain had manifested irt trade matters, nor had she been querulous of the fact that preferential treatment 1 was not always reciprocated. “South Africa always hTfd a clear perspective of the different circumstances of the 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 its Import Duties Act, 1932, . greatly widened the range of imports subject to tariffs, 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 •subject to this tariff, nor was there co-relation between these preferences and each industry’s requirements. Greater elasticity in these preferences would have been -greater utility to South Africa. " South Africa would have preferred to see a slightly larger margin of preference In favour of certain . commodities effeoted; whereas regarding .others extension was not so material. “ South Africa submits that a state-, jment such as Mr Baldwin’s does not •best serve the objective of the Con-ference—-namely, examining ways and means for Empire 00-operation and extending existing markets. Mr Baldwin’s statement aggregates the Domin- ■ Jons’ trade with Britain, and consequently reflects a favourable tradtl balance for the Dominions. “South Africa’s position is peculiar. She encouraged British imports without insisting on quantitative trade reciprocity, and if the figures are examined in their true perspective they would sho\y a balance of trade definitely in British favour." - South Afriqa’s Imports. . Mr Baldwin’s figures, Mr 'Havenga said, showed that South Africa’s total imports for the year 1920 from all sources were £63,357,000, namely from— Britain £29,735,000 Other British -Countries £6,947,000 Foreign Countries ... £26,675,000' Mr Havenga stated these figures did not truly reflect the Union’s absorption of British goods, for an increasing market In the Union was offered) those goods. South' Africa within one year rose from eighth place, compared' with other customers of Britain, to fourth place, which she now occupied. Mr Havenga went on to -state that Mr Baldwin had stressed that a large proportion of, the Dominions’ products were still, enjoying free entry into : Britain, and submitted that the accentuation of this point was disproportionate to the cdnsequ'ential advantage to the Dominions. “Britain takes from, the Dominions mostly foodstuffs and raw materials, Which, in its own interests and in -accordance with ltd fiscal policy, have been given free entry. Britain’s exports are manufactured articles. Nothing Unreasonable. “ South Afrlc-a would see nothing? unnatural nor unreasonable irj her produce being subjected to duties in the British market for protection or Britain’s domestio produce and the • delegation- would not -suggest that Britain should grant concessions militating against British domestic industries, but South Africa would -welcome preference for Dominion over foreign products. “South Africa considers that the table showing that the Union has a considerable favourable trade balance is misleading because it includes gold among the co-nsumptible' merchandise, also transhipments and subsequent exports. V ;. ,- | “ South Africa uses more than twice i as much British merchandise than Britain uses of South African merchandise. Inasmuch as South Africa has an insufficiency 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 a large share of iier competitive trade to secure an outlet for tier gold./ Britain’s Favourable Position. “ South Africa bought from Britain in 1930 more than £29,000,000 o' commodities which enter into competitive trade, while Britain bought from South Africa £12,000,000 of such goods. This favourable British position in South Africa’s competitive trade is the normal position." Mr llavcnga suggests an early discussion on lines in which Britain and Soulli Africa can give mutual assistance.