Konferenz

wards all the Governments here represented, towards the Conference in general, Nr. 10298. and towards each of its members in particular, if I were not to explain further Staaten. in some detail the motives of our opposition to the establishment of import 14. Juni 1890. duties in the Congo. I venture to hope, that, when examined in the friendly spirit which I invite, my observations will be recognized as not being unfounded, and as justifying our attitude. We are quite disposed to recognize the necessity for the Congo Free State seeking to augment its revenue, so as to meet the expenses accepted by the Conference for effectually combating the Slave Trade; but we think the Congo State can obtain equivalent resources by other means than import duties, without infringing the Berlin General Act, without depriving the traders in the Congo Basin of their freedom of commercial action, and without inflicting on them all the troubles, formalities and difficulties of all kinds which import duties would entail. To explain these difficulties, it will suffice to state that more than twenty years before the European occupation of the Congo Basin large commercial houses were established in the territories now belonging to the Congo Free State, France and Portugal. They possessed factories along the whole coast and the courses. of the rivers. They all had a central depôt in the best situated localities, from whence goods were distributed for sale among the factories according to the requirements of their business. But it must be borne in mind, that trade in the Congo Basin is very capricious, and that it very frequently happens that after bad rainy seasons, sickness, or disputes among the natives, trade is suspended in certain districts for a considerable time. The merchandize is then withdrawn and sent to factories often far distant, but where circumstances are less unfavourable. This power of freely moving goods about, of which trade is at present in the enjoyment, offers a great advantage, by allowing of trading with a much smaller capital than would have to be employed if the goods could not be disposed of by sending them to the factories which are temporarily most favourably situated. || Several of the abovementioned houses still exist. They have their depôts in the Congo Free State, or in the Portuguese Congo, and send, according to circumstances, to the various factories they possess in the three States of the Congo Basin. || This complete freedom of action, without great expense and without any formalities, offers advantages which would gradually vanish under the collection of import duties. There would be an end to this free exchange, especially if each Government fixed the Tariff as it chose within the maximum limit. || It is hard to conceive the difficulties, the verifications and the formalities which would be entailed in the continual movement I have just sketched by the proposed measure when applied to a thousand articles of all kinds. Trade would thereby suffer considerably, and the enormous outlay in the construction of general warehouses would be in great part lost. || The small commercial houses would suffer as well as the large; numerous factories are established in localities where there is neither territorial nor fiscal authority, and where

Konferenz

Nr. 10298. steamers discharge goods. By forcing the traders to make them discharge Staaten. in a port where there are fiscal authorities, the Governments being unable 14. Juni 1890. to establish these authorities in all parts, it would then be necessary to hire boats to transport the goods to the factory, whereas the steamers used to deliver them at their doors. Import duties would be, therefore, a source of difficulty and expense for all traders, large or small, and, indeed, for all trade. What profits will accrue, on the whole, to the Governments themselves from the import duties, after deducting the expenses which the collection of the duty must necessarily entail? These profits will be very small, as the collection of the duty will necessitate rigorous verification to avoid fraud. This verification will require a numerous staff, in order to protect honest traders against the proceedings of less scrupulous competitors. It will be all the more necessary to establish a strict supervision, because the way in which the three Congos are divided offers special facilities for smuggling. Warehouses must be built in certain localities, and they must be of large dimensions, as European marketable goods are almost, without exception, very voluminous and of not much value. The net profits from the import duties, therefore, will be very small. There are countries where a much higher Tariff exists than that proposed for the Congo, and where the proceeds are entirely absorbed by the expenses of collection. Why, then, impose on the trade so many obstructions, expenses and losses in order to obtain such a small result? | Doubtless the Congo wants revenues, and we shall not oppose any reasonable measure for obtaining them; but we protest against any import duties, because trade would suffer thereby, and the State will reap hardly any profit. The Congo States have, for some years past, established export duties on exported goods. Why not raise these duties in proportion to those which it is desired to collect on imports? This increase would entail no supplementary expenditure, as the same staff would suffice to collect duties either at a higher or lower rate. || Hitherto the produce of the Upper Congo has paid no export duty, although this produce returns trade the highest profits. Why this immunity? || Perhaps other taxes could still be found, less hurtful to trade than import duties. Our honourable President stated himself at the Berlin Conference, on the 27th November, 1884, that the collection of export duties is less vexatious than that of import duties, and several other members of the same Conference expressed themselves in a similar sense. His Excellency Baron Lambermont, in his speech on the 10th May, told us, that the Berlin Act, while prohibiting the levying of any import duties in the conventional basin of the Congo, had no intention of fixing definitively and irrevocably the economical system under which he placed the territories which are included in it. There can be no doubt about this, for the second paragraph of Article IV of the Act states, that the Powers reserve to themselves to decide, after a period of twenty years, whether the exemption from duties shall be maintained or not. The proof, moreover, of the importance

Nr. 10298.

Konferenz

attached by all the Powers Signatories of the Berlin Act to the exemption clause, at least for twenty years, is to be found in all the Conventions con- Staaten. cluded between these Powers and the Congo Free State. The exemption 14. Juni1890. clause occupies a prominent position. || True, it is said, that the favourable results hoped for from the European occupation after a period of twenty years have been already realized after five. It may be questioned whether this calculation is not rather optimistic. The great efforts made by the Congo Free State to open the Upper Congo to civilization and trade are assuredly worthy of recognition. Several stations and centres of administration have been established there; some fifteen boats plough the waters of the upper river. Much has been accomplished by the infant State, and at great sacrifices. But the organization of the public service is not everything; there must also be the development of trade and agriculture, and these are only just beginning in the Upper Congo. || Allow me, Gentlemen, to sketch in a few lines the commercial situation in the Congo Basin. There is no evidence of a progressive movement in the Lower Congo. If, in the last two or three years, the exports have been rather more important than in the two or three previous years, it is owing to more favourable rainy seasons, that great factor in the fertility of the Congo. One may, then, say, that, in the Lower Congo and in the region of the littoral of the Congo Basin, trade has remained stantionary of late years, with periods of prosperity more or less great, according to the abundance or lack of rain. But one valuable article of exportation is at present not found in the Lower Congo. This article is ivory, which the natives used formerly to sell in the Lower Congo, and especially on the littoral of the Portuguese Congo, whereas it is now purchased in the Upper Congo by the commercial houses latterly established there. It is a transference of trade, with this difference-that buying ivory in the interior yields more profit than buying it on the coast did formerly. || If, then, the situation in the Lower Congo has remained much the same, one must not forget to notice in the interior the presence of three commercial houses, all possessing steamers, occupied in the purchase of ivory. The exportation of india-rubber, which seems to abound in the interior, is as yet only in its first phase. There are, of course, other products which might be profitably cultivated. But they cannot now be taken into calculation. The cost of transport, in the region of the cataracts, is too high, and transport by bearers would, moreover, be insufficient. "But, thanks to the energy and enterprising spirit of a Belgian Society, a railway is in process of construction, and will, it is anticipated, connect in three or four years the Lower Congo with the navigable upper river. The transport will then become rapid and less difficult, and a great development of trade and cultivation by Europeans may result. || But in the four years which still separate us from the opening of the railway, the commercial and ⚫ agricultural development can only progress slowly and painfully, and one may well question the justice, or even the prudence, of imposing taxes on trade,

Konferenz

Nr. 10298. industry and agriculture which are forced to progress under such difficult Staaten. conditions. || A Belgian Company has been created recently with the object 14. Juni 1890. of forming plantations in the Upper Congo. This is the first enterprise of this kind. It is to pay its black labour, and to buy its provisions in exchange for European goods. Is it just, that this Company, which can scarcely get any return from its plantations for three or four years, should see its expenses increased 8 or 10 per cent. by import duty during these initial difficulties? The industrial Companies want quantities of textile fabrics and other articles to pay transport and labour, and to buy provisions for the black labourers and the staff of whites. Is it just, that they likewise should see their expenses increase 8 or 10 per cent. for import duty on textile fabrics, &c., and on tinned provisions, of which it is necessary to import large quantities for the European staff? || And the numerous Missions which likewise import considerable quantities of stuffs to pay carriage, and of provisions, is it just to burden their budget with import duties? Yet the missionaries only labour for a humane and civilizing object, and their budget is sustained partially by people of small means in Europe and America. It is otherwise with trade. Even where in the beginning there are certain difficulties to be encountered, the exports will always represent a certain profit. For this reason preference should be given to export duties (of course within reasonable limits) over the import duties which it was wished to establish. || This organization will, no doubt, impose heavier charges likewise on trade, since the Missions, among others, who would, in such an event, contribute to the import duties, have nothing to pay; but trade will accept these heavier charges rather than be subjected to the annoyance of a system of import duties, and to the loss of its freedom of movement. By not compelling it to pay import duties, trade (except only that in ivory), as well as agriculture, will develop gradually until the opening of the railway; but after the establishment of this rapid means of transport a great impetus will be given to everything, and there will commence a state of things which is supposed to be already in existence, whilst in reality there exist now only anticipations, and there is still need for all the solicitude and protection of the Government. || Give time for the construction of the railway. Then give time for European and American capital and energy to find out and to develop the resources of the interior. One might then think seriously of doing away with Article IV of the Berlin General Act. The period of twenty years adopted therein has in reality been admirably fixed. In the above you will find, Gentlemen, the explanation of the attitude of the Netherlands on the question of import duties. Far be it from us to wish to refuse the Government its necessary resources; only we propose a different system, one more advantageous to trade and to the Governments themselves. || May I be allowed to add a few words regarding the position of the Netherlands in particular in this matter? Before the occupation of the Congo Basin by the European Powers the trade of Holland was and

Konferenz

is still among the most important there. In 1885 the Congo Basin was divi- Nr. 10298. ded between the Congo State, France and Portugal. The Netherlands, like Staaten. all the other Powers, secured the guarantee of exemption from import duties 14. Juni 1890. for at least twenty years. After only five years, it is proposed to withdraw this exemption, a withdrawal by which the trade of Holland, and, on the West Coast, that of America, would be the only sufferers. As a matter of fact, although the English, Germans, French and Portuguese have likewise commercial establishments, and very important ones too, in the conventional basin of free trade, their Governments could find compensation, if Article IV of the Berlin General Act were annulled, in being able, if they thought fit, to levy import duties thenceforth in their respective territories. It would be no small matter, Gentlemen, to see one's self deprived under these circumstances, without any compensation, of a right which one had a claim to consider as assured to the trade of Holland for another fifteen years. || That, however, is not the motive of our opposition to the import duties. But we think, as I have shown above, that the State can establish more just duties, and such as will not interfere with the freedom of trade."

The President says, that, as he had undertaken to present the proposal regarding the establishment of an import duty on the Congo, he now finds it necessary, after the considerations set forth by the Netherlands Minister, to enter into some explanations. || When he laid the draft on the table it had a preamble, but the enacting part of the proposal was in some sort in embryo; it merely stipulated for the establishment of import duties, and fixed their maximum. This draft has been read once in Committee; some fresh ideas have been brought forward; others have been abandoned. Thus the idea was abandoned of drawing up a uniform Tariff, which was for a moment thought of; and it was decided only to fix a maximum, leaving to each Power complete freedom in its application.

A formula was then sought which might best answer these views. A draft has been prepared in this sense. It would constitute a fresh Chapter, which would logically be inserted in the body of the Treaty, and would have for its title: "Financial Measures destined to facilitate the execution of the General Act." || It runs as follows::

"Article I.

The Signatory Powers, taking into account the necessity of facilitating for certain among them means whereby they may meet the expenditure imposed upon them by the present General Act with a view to the suppression of the Slave Trade, have agreed, that import duties may be levied, under the conditions laid down in the following Article, by the Signatory Powers which have possessions in Africa where the collection of such duties is not at present authorized, and in cases where an authorization to this effect may be necessary.