SOMALIA. SITUATION AND COMMERCE. The colony of Somalia lies on the east coast of Africa, extending n just below the Equator northward, with British East Africa Abyssinia to the west. It embraces the southern portion and a le more than one-half the area of Italian Somaliland. Agriculture is carried on in the river valleys, but most of the land adapted only to pasturage. The natives, for the most part nomadic dsmen, weave some cloth and make baskets, but there is little eign trade in the products of these industries. Cotton goods contute nearly one-half of the total importation; sugar, coffee, tocco, and four are other important items. The chief articles of mmerce and the share of Italy in the trade for the last year before e war are shown in Tables 10 to 12, inclusive. The effect of the war on the total value of the commerce of Somalia was not marked. As may be seen from Tables 11 and 12 the most oticeable feature of the totals is the increase in the value of exports n 1917. But great changes appear in single items; imports of cotton lecreased in value from 3,464,000 lire in 1913-14 to 1,941,000 in 1917, and raw sugar from 523,000 to 178,000 lire, and these smaller values ndicate still larger decreases in the quantities imported. The inrease in the total exports in 1917 was due largely to the appearance of a new item, wool, valued at 484,000 lire and to increases in cattle hides and goat skins from 661,000 in 1913-14 to 1,083,000 lire in 1916 and to 1,659,000 in 1917. The effect of the war on the source of the imports and the destination of the exports was likewise marked. The share of Italy in the imports steadily decreased and her share of th exports rapidly increased, so that instead of nearly one-half of th import trade, Italy came to have practically none of the import tra and two-thirds of the export trade. The import trade lost by Ita was taken largely by India, British East Africa, and Australia. Whi the published figures do not give the destination of the exports by items, there can be no doubt that even before May 1, 1917, whi the exportation of hides to other countries than Italy was still pe mitted Italy was taking all or nearly all the hides, skins, and wo from Somalia as well as from her other colonies.34 Tables 11 and 12 show the value of the total trade of Somalia and the share of this trade with Italy. Figures are included for the most important item of imports, cottons, and the most important item of exports, cattle hides. The figures for the goods imported free for the civil services of the government are not included in the imports from Italy nor in the totals, and these goods may not have come exclusively from Italy. TABLE 11.-Imports into Somalia.1 [In thousands of lire.] 1 Ministero delle Colonie, Bollettino di Informazioni, Vol. VI, No. 1. 2 Fiscal years ending June 30. The difference between the fiscal year 1913-14 and the calendar year > shows the immediate effect of the outbreak of the war on the imports from Italy and on the trade in cott Under the administration of Zanzibar.-While the four ports Somalia, known as Benadir,35 were still under the administration of 34 The increase in the Italian share of the exports of Somalia may not be so great as appears from the figures for the direct trade. Two-thirds of the exports formerly went through Aden, but in 1916 only 40 p cent, and in 1917 only 10 per cent; i. e., Italy may previously have obtained Somalian products via Ade Aden's share of the import trade of Somalia decreased during the war, but not greatly, so that both be the war and now the figures probably do not disclose Italy's full share of the trade. But as the Itali have made special efforts to develop direct trade with their colonies probably only a small part of the merchandise transshipped at Aden is for Somalia Italiana. as See p. 373. Zanzibar, the import duties levied there were restricted by treaties. As early as 1833 the Sultan 36 had agreed with the United States not to levy on imports duties higher than 5 percent ad valorem. This provision was modified by treaties of 1886 with Great Britain, Germany, and the United States to permit a rate of 25 per cent on liquor containing over 25 per cent of alcohol.37 The treaties with Germany and Great Britain limited the export duties also; the rate on ivory, rubber, and copal was restricted to 15 per cent, that on hides and various other articles to 10 per cent, that on tobacco. to 25 per cent, and that on cloves to 30 per cent. Other rates were prescribed for other products. The ad valorem rate on goods not specified was to be not over 5 per cent. There were, in addition, a few specific rates-as, for example, horses, 10 M. T.38 thalers each; and camels, 2 M. T. thalers each. Under Italian companies.-The Italian occupation of Somalia apparently began with the taking over of the port of Itala on March 14, 1891. Thereafter the coast was gradually occupied. The administration of the colony was intrusted at first to the "Italian Company for Somalia, V. Filonardi and C," and in 1899-1905 to the Benadir Company. Customhouses were opened at the four Benadir ports which had formerly been leased from Zanzibar, namely, Brava, Merka, Mogadisho, and Warsheik, as well as at Giumbo, Itala, Langione, Torre, Mruti, and Dgelleb (Gelib Mare).3 39 By a treaty of December 22, 1890, Italy, Germany, and Great Britain agreed to limit to 5 per cent all import duties in their possessions in the eastern zone of the Conventional Basin of the Congo.40 This treaty went into effect in April, 1892, at the same time as the Brussels convention of 1890, and apparently remained in effect throughout the period of the administration of Somalia by commercial companies. These companies were bound to carry out Italy's international obligations. Further, by the terms of the lease of the four Benadir ports, "the obligations which are or could be imposed by adhesion to the general act of Berlin" were imposed upon the Italian company which signed the lease." The regulations promulgated on April 14, 1895, for the territory not leased from Zanzibar, and which had already been proclaimed in the four leased ports, levied 5 per cent on both imports and exports, except as otherwise specified. The only higher rate on imports was 25 per cent ad valorem on liquors containing over 20 per cent of alcohol. Export duties in excess of 5 per cent but not exceeding 15 per cent were levied on most of the principal products of the country. The Sultan of Muscat, whose domains then included Zanzibar. The Sultan of Zanzibar definitely acknowledged this treaty after he had established his independence. Brit. and For. State Papers, vol. 78, p. 777, treaty with United States signed July 3, 1886, and ratifications exchanged June 29, 1888, modifying treaty of Sept. 21, 1833. lb., vol. 77, p. 54, treaty with Great Britain, Apr. 30-Aug. 17, 1886. The American treaty contained no time limit: the English treaty was for 15 years. An Italian mission in 1892 found a uniform import and export duty of 5 per cent in force in Merka. Italian Green Book, La Somalia Italiana, p. 131. M. T. Maria Theresa (thaler), approximately $0.50. Some of these were later abandoned. The regulations accompanying the tariff in 1910 mention customhouses at the first six of those named and also at Gesira, and in the interior at Bardera, Lugh, Gelib (Gelib Juba), Kansuma, and Margherita. Som. Man., Vol. II, p. 333, Art. I. The regulations of 1911 do rot mention the stations. Brit. and For. State Papers, vol. 82, p. 81. Trattati e Convenzione, vol. 12, p. 493. This treaty is listed in the Elenco degli Atti Internazionali in vigore all Gennaio 1908, p. 81, under treaties with Ger many, but it is omitted from the list of those in force with Great Britain. It provided for a conditional duty of 10 per cent on arms and munitions, and for the free importation of agricultural tools and machinery, and materials for the building and maintenance of ways of communication. As this treaty was subsidiary to that of Brussels, the limitation to 5 per cent did not apply to distilled liquors. Brit. and For. State Papers, vol. 84, p. 632. Under the Italian Government.-The Italian Government took over the administration of Somalia in 1905. Shortly afterwards a new tariff was decreed, containing both differential duties and import rates higher than 10 per cent. This tariff was set forth under 73 heads.42 Most of the articles were subject only to import or to export duties, but a few were subject to both. Import duties of 15 or 20 per cent were levied on iron bars and manufactured iron, arms, and munitions, salt, tea, spirits, and suaheli tobacco. Even higher rates were levied on other tobaccos and on nickel and copper money. Machines and their parts and pulse paid 5 per cent. Cottons, including yarns, were listed at 5 to 8 per cent. Other articles paid for the most part 10 per cent, which was also the rate on goods not enumerated. The duties were payable in gold. Payments made in Maria Theresa thalers or in nickel were subject to an increase of 3 to 5 per cent. Under this tariff the articles appear in a single schedule with the same rates for goods of Italian as for goods of foreign origin. Thirteen items, however, have subheads "foreign" and "Italian," so that the differential can not be overlooked. In the case of these thirteen items, the rates on Italian goods were, except for cottons and beads, just one-half those on the foreign goods. 43 Bottled wines and vermuth had a specific rate and the other articles paid 5 or 10 per cent accordingly as they came from Italy or from foreign countries. "Cotton textiles" of foreign origin paid 7 per cent; other cotton textiles called "Merican" and "Bofta" were scheduled for 6 per cent and 8 per cent respectively. These latter came only from foreign sources, and the duties were therefore also differential in so far as the goods competed with the cottons of Italian origin which paid only 5 per cent. On this point an extract from a decree of June 29, 1906, may be quoted: Considering that the customs tariff in force in Somalia Italiana Meridionale is inspired by the principle of the concession of preferential rates (dazi di favore) for some of the dutiable national goods; considering that when the said tariff [that of Sept. 12, 1905] was compiled, national cotton textiles of the type Merican and Mardui were not specified, probably because no importation had as yet been made of them, considering that for some months the laudable initiative of certain merchants has begun to introduce upon this market some of the aforesaid textiles of national manufacture; and whereas it is suitable to facilitate, in so far as it may be done without grave injury to the finances of the colony, the penetration of this national product also into the different markets of Somalia Italiana Meridionale for the advantag that would result from the development of the trade with the mother country [the duty on these cottons, if of Italian manufacture and certified in the proper manner, was reduced from 6 per cent to 5 per cent.]45 This change was incorporated in the tariff of August 20, 1907, in which cottons were classified and given rates as follows: "Cotton textiles"-foreign 6 per cent, Italian 5 per cent; "Bofta," 8 per cent; "various"-foreign 7 per cent, Italian 5 per cent. The Governor, Comandante Cerrina, who signed this decree, feared (rightly) that the slight reduction would not be sufficient to enable Italy to compete with the quantity production and cheap 42 Som. Man., Vol. II, pp. 315-325. Decreto Commissariale No. 27, Sept. 12, 1905. 43 The rates on beads were 10 and 15 per cent. 44 The surtax of 100 lire per hectoliter of spirits, pure, sweetened or perfumed, of 50° strength with an increase of 2 lire for each additional degree, was doubled when applied to foreign products. Art. 151 of the Regulations of Sept. 12, 1905. Som. Man., Vol. II, p. 297. Som. Man., Vol. II, p. 492. w material of the United States;" he regretted that fiscal reasons 403 evented greater preferences, and he looked forward to a time when v admitting her own cottons duty free Italy might completely onquer this market.47 48 Two other changes in the differential duties appear in the customs. atistics. From the figures for 1909-10 and 1910-11, it oods not specially enumerated in the tariff (merci diversi) were payg only 5 per cent if of Italian production and 10 per cent otherwise." appears that ikewise the figures for 1909-10 and 1911-12 show a differential uty on cement." Changes in the nondifferential rates are likewise w. Perhaps the most important was the reduction of the rate on alt from 20 per cent to 10 per cent.50 A change, which on the face of it was only for administrative puroses, increased and may have been intended to increase certain of lese differential duties. A decree of June 20, 1909,51 provided that hereafter goods not listed in the official tables of valuations, should ay duty on the invoice value plus 20 per cent, instead of plus-40 per Bent 52 which had been the rule for some years. Most of the articles numerated in the tariff have valuations assigned to them, but those rticles on which the duties are differential have for the most part no aluations assigned. But there are four exceptions to this rule. On flour, matches, corn, and wheat, and on Merican and Marduf cottons,5 the foreign articles have valuations assigned to them, and he Italian have not; so that the change of basis for the levying of the Futy reduces the amount payable on the Italian goods by onein seventh, without affecting the amount collectible from the foreign goods. Export duties, 1905.-Under the tariff law of 1905, duties were evied on all exports, the rates being specific on grain and animals and ad valorem on all other articles. Ambergris paid 20 per cent; ortoise shell, ivory, rhinoceros horns, and myrrh, 15 per cent; ostrich eathers, 8 per cent; gums, 6 per cent; native butter, pottery, oil of sesame, cotton, cotton textiles, and a few other articles paid 5 per cent, and practically everything else 10 per cent. The specific rate 21. In his report of 1906 he states more specifically that "Merican" and "Marduf," come almost wholly from North America. Senato del Regno, Ses. 1904-1909, Legis. XXII. Atti Interni, No. 264. Annex 1. Estratti dalla Relazione del reggente il Governo del Benadir, G. Cerrina Feroni in data del 23 Marzo, 1906. 47 Ministero degli Affari Esteri, Benadir, pp. 116-177. 48 This differential possibly goes back to 1905-6, as a differential at that rate appears on certain cotton 49That is, unless the rate had been changed in the interval. A shipment from Italy in the former year Decree of Feb. 16, 1907. Som. Man., Vol. II, p. 521. The chief object of the tariff of 1907 apparently was Decreto Governatoriale, No. 366, Som. Man., Vol. III, p. 113. Cf. Mono The tariff regulations provide that the table of valuations shall appear early in September, based on This applies to the valuation tables of 1905, 1907, 1911-12, 1912-13, and 1913-14; the only ones found value. |