tectorate. Subsequent amendments of the Union of South Afrin er tariff have been also applied to South-West Africa. There se therefore, free trade between the Protectorate and the Union 8 South Africa, and the provisions in force in the Union for prefere, a to British imports are likewise effective in the Protectorate. t e New Guinea.-The mandate for the former German colony New Guinea, excluding Nauru and the islands north of the Equato was conferred upon His Britannic Majesty to be exercised on behalf by the Government of the Commonwealth of Australia. bill providing for the civil administration of this group became l (Statute No. 25) on September 30, 1920, but up to May 9, 1921, islands were governed by an Australian military administratie which proclaimed new tariffs intended for revenue purposes on and containing no preferential features. It may be noted, however, that the majority of the (Australa Royal Commission on the Late German New Guinea has reporte in favor of preferential duties on goods imported into New Guines in Australian ships, and on products of New Guinea imported in Australia.28 While the tariff of New Guinea as yet contains no discriminator features, by other means the trade of the country has been reserve to Australian interests. Copra is practically the only export, and s 27 E. g., South-West Africa Protectorate, Proclamation No. 6 of 1917. "The effect of the above tioned proclamation is that the customs and excise duties and regulations at present in operation int Union of South Africa are now operative throughout the Protectorate of South-West Africa." (Board!! Trade Journal, May 2, 1918, p. 553.) 28 Interim and Final Reports of Royal Commission on Late German New Guinea, Australian Par mentary Papers, 1920, No. 29, F. 1334, pp. 47-48: In prescribing the trade relations of the territory for the future, regard must be had to all interests cerned; not only must the direct material benefit of the mandated territory be considered, but one take into account also the rights of Australia and the Empire. The purely territory point of view is clearly set out in the letter from the administrator, quoted in t tenso in our chairman's separate report. Briefly stated, what Gen. Johnston desires is direct commu tion with the East and with Europe, so that supplies may be obtained and produce exported with using Australia in either case as an intermediary. The German merchants have made requests to t same effect. If this view is adopted, Australia will be practically cut out, and her trade will be limi to occasional consignments of meat, biscuits, and flour, while the ships which carried those cargoes w return empty. All the business would be done by subsidized vessels with colored crews belonging t Japan and Holland, and perhaps occasional ships, also run on cheap conditions, from England or Amer Your commissioners do not consider that such a state of things would be regarded with complacence the Australian people. They have already stated the view that Australia did not undertake navala military operations against German New Guinea for the sake of gain, nor did the prime minister put th ward such strenuous efforts at the Peace Conference to secure the mandate over this territory for Aus tralia merely for the purpose of obtaining commercial advantages, but it would be intolerable if, after that has been done and suffered by Australia, its citizens were to be asked to stand by, to accept all the troubles and difficulties attendant on theinternational obligations regarding the government of the countr to incur heavy financial responsibilities, to risk possible losses, and to see the profits of trade going in.) alien hands. The navigation act makes trade between the mandated territory and Australia subject to conditi as to manning of ships, pay, and accommodation of crews, etc., that will preclude foreign competition between Australia and the mandated territory, but it does not affect the position of ships making Rat a port of call, provided they do not carry passengers and cargo between the territory and Australia. It is necessary, therefore, to consider what courses are open so as to secure that Australia is not on able to obtain some, at any rate, of the trade advantages that will be derivable from this potentially territory, but is also in a position to maintain those intimate trade relations which are desirable in orde that the territory may not become an isolated community looking to the outside world both as the marks for its goods and its source of supplies, and so drift out of touch with the Australian people. Your commissioners have considered three courses-complete reservation of all trade to Australia, res ervation to British (including Australian) ships only, and unrestricted trade. Each of these, if adopte exclusively, will lead to difficulties. They, therefore, invite attention to the suggestion which they be lieve offers a fair solution. They advise that a system of differential duties be established, the import and export duties to remain practically as at present (subject to the changes recommended in Chapter III in regard to all goods imported from or exported to Australia in Australian-owned ships, that higher rates fixed at a prescribed percentage on those existing, be charged when the goods are carried in British shaps other than Australian-owned and still higher when goods are carried in foreign-owned vessels. As the Australian tariff now stands, goods imported from Papua and the mandated territory are subject to the same duties as goods imported from foreign countries. It is understood that the Government have had under consideration a proposal to remit a portion of the duties on produce of Papuan origin. Your commissioners commend that proposal, and assume that such concessions as are granted to Papuan settlers will be extended to settlers in the mandated territory. 29 nbargo has prevented shipment except to Australia. Foreign vesIs are thus effectually prevented from taking on outward cargoes nd therefore from competing in either the inward or outward trade, a and the extension to the trade between Australia and New Guinea of e Australian navigation laws, part of which has recently become fective, will prevent most non-British ships from carrying freight - passengers between these points. There is also a subsidy of £40,000 annually paid to Burns, Philp & o. for carrying the mails to New Guinea, New Hebrides, and NorIk Islands.30 The Australian Government has also made an agreement with the nglo-Persian Oil Co. (in which the British Government is heavily terested) by which the latter acquires a monopoly of the oil produced Australia and its dependencies.31 The Territory of Western Samoa.-In 1919 New Zealand received a andate over former German Samoa, and, renaming the group of lands the territory of Western Samoa, placed them under the inistry of external affairs of the Dominion. After the occupation of Western Samoa by the forces of New ealand, the existing import duties were maintained and export uties were added in accordance with a decision made by the local erman authorities shortly before the outbreak of the war. By an order in council of April 20, 1920, a radical revision of the mport tariff of the Territory was promulgated. Under the new chedule tobaccos are dutiable at specific rates without differentials, nd there is a very small free list, including household effects; drugs nd chemicals; printed literature, including music; religious and ducational goods; and a few other items. All other articles are nade dutiable at 15 per cent ad valorem " if produced within the British Empire, or at 22 per cent ad valorem if produced elsewhere. Export duties are levied at the rate of £1 a ton on copra and £2 a ton on cocoa and at equivalent rates on extracts or preparations of these >roducts. Firearms, explosives, and goods produced 34 in Germany ›r Austria may be imported only as licensed by the minister of ustoms. 33 According to the convention of 1899 between the United States, Great Britain, and Germany disposing of the Samoan group, each of hese nations was to enjoy equal privileges with respect to commerce and shipping in the ports of the islands.35 American rights under this treaty were plainly unaffected by the defeat of Germany, and the violation of the treaty by the differential tariff imposed by the administration of New Zealand now forms the subject of diplomatic correspondence. 19 See the minority report of the Royal Commission previously cited, p. 70. 30 Stead's (magazine), Nov. 13, 1920. Further, the property of Germans is being expropriated and apparently none but Australians are being permitted to acquire it. 31 For the conditions and qualifications, see Board of Trade Journal, Sept. 16, 1920, p. 352. Perhaps, technically, the oil of the mandated territory is not included in the monopoly. The rate was previously 12 per cent. 33 The British Empire includes protectorates, and goods produced in the British Empire include those whose final process of manufacture takes place in the Empire and one-fourth of whose value is contributed by materials produced or labor applied within the Empire. The regulations in these respects are the same as those found in New Zealand. 34" Goods shall be deemed to have been manufactured or produced in Germany or Austria if as much as 5 per centum of the value thereof as estimated in accordance with the provisions of the customs act, 1913, with respect to goods subject to ad valorem duty, has its source in Germany or Austria." (The Laws of the Territory of Western Samoa. The Samoa Customs Order, 1920, sec. 19, par. 5, p. 66.) * See chapter on the Colonial Tariff Policy of the United States, pp. 577 and 615. North Pacific Islands.-The Japanese administration levies 10x cent ad valorem on all imports, except that rice, fresh vegetaba sugar, kerosene, and building materials are exempt, and except t the duties on tobacco and liquors are specific. Export duties a levied upon copra and phosphates at the rate of 8 yen per ton. Nauru.-Nauru is so small in area and population that in the nat of the case it can have no trade except in connection with the act ties of the company which exploits its phosphate deposits. absence of information in regard to its tariff is therefore unimporta since the concessionary company which formerly worked the dep has been expropriated by the political and financial cooperation the Governments of Great Britain, Australia, and New Zealan These three Governments have agreed-though the agreement subject to the official approval of the League of Nations-to dr in fixed proportions the annual output, and to sell it at cost t home markets. This action is defended on the ground that it has do only with private property and that the resulting monopoly the resources of Nauru is purely incidental. TREATMENT OF PRODUCTS OF MANDATED TERRITORIES IN MARKETS OF THE MANDATORY POWERS AND ELSEWHERE. Products of the mandated territories have as yet received no spec tariff favors in the territories of the mandatory powers, except t since South-West Africa has been included in the South Afric Customs Union its products enjoy free entry into that Union. The differential export duty upon raw hides and skins shipp from India for tanning within the British Empire is applicable als to those destined for territories "in respect to which a mandated the League of Nations is exercised by the government of any me ber of His Majesty's dominions." 36 The British preferential tariff rates may, in accordance with th law under which they were established, be extended by order council to products of British mandated territories, but such order has not been issued. The South-West Africa Protectorate however, and possibly certain islands in the Pacific, by virtue their administration as integral portions of the territory of Brits Dominion, already share the advantages of the British preferent tariff.37 It may be recalled also that the Australian Royal Con mission on the Late German New Guinea recommended preferenti treatment for products of the mandated territory entering Austral 36 And except that, as reported by L'Afrique Française, December, 1921, p. 436, products of Tegoz Kamerun, if imported directly, are subject to the French minimum tariff rates, i. e., these manda territories are treated as nonassimilated colonios, VI. Differential tariffs in the Crown colonies Export duty on tin ore from the Feder Rate of duty.. Far We Se dip pe th N Reason for imposing the duty and its West African export duties Nigerian duty on the export of tin ore. The interest of the United States Indian opinion in regard to protection. Table 42.-Materials for which the world depends upon India.... # Table 43-Trade in which imperial preferences would give an advantage to Great Britain. Proposed differential export duty on jute.... The differential export duty on hides Effects of the war on the Indian The differential export duty.. Effects of the differential export Incidence of the duty.. The preferential feature Table 44-Imports of hides Table 46.-Preferential tariff rates Preferential war restrictions: Dyestuffs.. 332 Summary and conclusion.... Table 47.-Increases in West Table 48.-Preferences in excess I. INTRODUCTION. THE BRITISH EMPIRE. In beginning their colonial activities the British were a full century behind the Portuguese and the Spaniards. Not until the first half of the seventeenth century did the British establish their first settlements-in the West Indies, Virginia, New England, Newfoundland, and Honduras. The first footholds secured by the British East India Co. in India were of the same period; and in the same period, also, British traders established posts in Africa on the Gold Coast and on the Gambia River. In the course of the wars of the eighteenth century and of the Napoleonic period, British soldiers and statesmen added vast and widely scattered territories to the Empire: The eastern provinces of what is now Canada, several of the |