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In 1889 a customs union was formed between Cape Colony and the range Free State, by which trade in South African products between e two countries became free and a uniform tariff was established imports from outside the Union. The Orange Free State received its own imports from overseas 75 per cent of the duties collected the Cape. This was the first instance after the adoption by Great ritain of the policy of free trade of the sanction by the imperial uthorities of a differentiation by a British colony in its tariff in vor of a foreign country as against all other countries, British and reign.58

In 1903, after unsuccessful attempts in 1896 and 1898, the British olonies in South Africa formed the South African Customs Union. he Union provided for free trade among the colonies, for a common ariff on foreign imports, and for preference to imports from Great ritain and from reciprocating British colonies. The preference mounted to 25 per cent of the general duties on articles subject to d valorem duties, unless the duties specified were 2 per cent ad alorem, when the entire duty was remitted on British goods. No reference was granted on articles subject to specific duties or ncluded in the free list.

This preferential tariff, applicable to the Crown colonies included n the South African Customs Union, marked the first instance, since he abolition in 1855 of the old colonial preferences to British prodcts, of the sanction by the imperial authorities of the grant by Crown colonies of tariff preference to British trade. It was a disinct and important departure by Great Britain from the policy >therwise uniformly followed since her adoption of free trade, not to permit British possessions under direct imperial control to differeniate in their tariff treatment between British and foreign products. In 1906 the rates of the customs union tariff were considerably increased and preference to British products was extended to many articles subject to specific duties. On items subject to ad valorem duties the preference was made uniform at 3 per cent ad valorem (including items subject to the general duty of 3 per cent ad valorem, which thus became free under the preferential schedule). A few changes of minor importance were made in the tariff rates in 1908. In 1910 the Union of South Africa was formed. The constitutional convention, however, gave little attention to tariff matters, and the act of the British Parliament creating the Union provided that until the South African Parliament determined otherwise, the tariffs in effect when the Union was established should continue in force.

In 1914 minor changes were made in the tariff, and in 1915 there was a more extensive revision with higher rates generally. The most important change increased to 20 per cent the duty on the numerous and important articles not specially mentioned in the tariff schedule or in the free list. The rate on these items had been 10 per cent under the tariff of 1903 and 15 per cent under the tariff of 1906. No substantial change was made in the preference. In 1920 several minor reductions in duties were made, but the duties.

58 See pp. 661 and 735.

now in force are substantially the same as those established ding the war.

Rhodesia, except Northeastern Rhodesia, which for tariff purposes Is included in the "Conventional Basin of the Congo," not only grants preference to Great Britain and reciprocating Dominions as a part of the South African Customs Union, but extends in addition preferences upon certain products of any part of the Empire Clauses of the orders in council providing for the administration of Rhodesia, which were drafted by Cecil Rhodes, founder of the colony, establish the rule that "no customs duties levied on any articles produced or manufactured in any part of Her Majesty's Dominiors or in any British protectorate and imported into Rhodesia shall exceed in amount the duties levied on such articles according to the tariff in force in the South African Customs Union at the commencement of this order, * * *”

Taken as a whole, the Rhodesian preference appears to be the greatest preference granted to British trade anywhere in the Empire. But the preference granted to British products by the South African Customs Union (outside of Rhodesia) is considerably less than those of the other Dominions. This is due partly to the fact that the base rates are lower than for the other Dominions, but more largely to the opposition of the Dutch, chiefly, who strongly opposed the estab lishment of preference to British products and who have opposed any extension of the preference. Numerous attempts have been made since 1903 to reduce or abolish the preference, but doubtless this would involve a disruption of the customs union, a consequence not desired by any part of South Africa.

Besides the Rhodesian preference which was granted gratis to all other parts of the Empire, reciprocal trade arrangements were entered into by the South African Customs Union with Canada, in 1904 and with Australia and New Zealand in 1906. In each case South Africa extended her preferential tariff in return for special conces sions by the other Dominion. Canada granted her preferential tari and a further differential upon wines. The agreement with Australia, which had not yet adopted a preferential schedule, secured substan tial reductions of duty upon a special list of South African products. New Zealand, where South African products already enjoyed the preferential tariff, conceded upon all South African products special rates lower than those of her preferential tariff.

The Transvaal and Swaziland have trade arrangements with the Portuguese colony of Mozambique. The agreement between the Transvaal and Mozambique, first made in 1875, provides for free interchange of products of the two colonies and permits the importstion through Mozambique of goods destined for the Transvaal at customs rates much lower than those formerly charged by Natal and the Cape. In 1908 Swaziland was made a party to the reciprocal free trade arrangement.

(Bibliography on page 832.)

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New Zealand was discovered by Tasman in 1642, but until 1823 Curopean Governments did not dispute the authority of the Maori hiefs over the native and European inhabitants of the islands. But owing to "the lawlessness of the white settlers, the constant ntertribal warfare, the shameless land grabbing, and an infamous rade in the curiously tattooed native heads," the British Governnent, apparently with reluctance, was forced in 1823 to extend the Sovereignty of the governors of New South Wales over all British subjects resident in New Zealand. France in like manner declared ts sovereignty over French subjects in the islands. In response o the pleas of the missionaries and also because of fear that British naction would be followed by French annexation of the islands, the mperial authorities in 1839 sent out Capt. Hobson to obtain the cession of the country from the native chiefs and to act as lieutenant governor. Early in 1840 Capt. Hobson succeeded in negotiating the treaty of Waitangi, by which complete sovereignty over New Zealand was transferred from the Maori chiefs to the British Crown.

I. TARIFF HISTORY, 1840-1903.

BRITISH IMPERIAL PREFERENCE IN EARLY TARIFF.

From the signing of the treaty of Waitangi in 1840 to May 31, 1841, New Zealand was governed as a dependency of New South Wales, and customs duties were collected for revenue purposes

This account is based in large part on the history of the tariff development of New Zealand given in the New Zealand Yearbook for 1916, pp. 329 et seq..

Condliffe, J. B.: The external trade of New Zealand, in New Zealand Yearbook for 1915, p. 858.

185766°-22-49

763

under the New South Wales customs ordinance. In 1841 New Zealand was made a separate British Crown colony, independent of New South Wales, and the first governor, Capt. Hobson, pro- and claimed a new customs ordinance, New Zealand's first separate tariff. This tariff was intended solely for revenue purposes and contained only a few items. It is of interest because of the pred visions it contained, in accordance with the colonial policy of Grea Britain at that period, for preferences to British products. The rates were as follows: 3

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In 1844 the duties were increased, and the preference to British products was abolished. In 1846 preference was again established by the imposition of duties of 12 per cent ad valorem on all foreig unspecified goods and of only 10 per cent ad valorem on simil British goods, but this preference was soon repealed. The tarif of 1851, which contained a more elaborate scale of duties, made no provision for preference to British imports. In 1853 New Zealand was granted a parliamentary constitution and acquired practically complete control over her fiscal system.

NONPREFERENTIAL TARIFFS, 1853-1903.

The New Zealand tariffs, during the Crown colony period, were revenue measures. In the period of autonomy subsequent to 1853 there were many changes in the tariff. There were 15 different customs acts before 1895, and the five years 1878-1882 were each marked by revisions. On the whole, the tariff continued, throughout this period, to be mainly a revenue tariff, both in purpose and in effect, but most of the revisions consisted of increases in duties or of extensions of duty to articles formerly admitted free. In the later years of this period the protective effects of the duties became more readily apparent and were acknowledged by successive administra tions without apology. A comprehensive revision in 1895 increased the number of ad valorem duties and considerably enlarged the scope

New Zealand Yearbook, 1916, p. 329.

arious schedules so as to give specific enumeration to a number of y items. The duties on a number of foodstuffs were reduced, but erwise the revision was marked chiefly by increases. In 1900 ther tariff revision took place, marked by the same general dencies of increases in duties, protection to domestic industries, 1 low or no duties on foodstuffs. Throughout this period, from 3 to 1903, there were no preferential provisions in the tariff legison of New Zealand.

EARLY PROJECTS FOR INTERCOLONIAL PREFERENCE.

The Australian colonies were prohibited by the original constitution ts enacted for them by the Imperial Parliament from establishing ferential duties of any kind. In 1870, however, the New Zealand gislature passed the colonial reciprocity act, authorizing the Govnment to make reciprocal agreements establishing mutual tariff oncessions with the Australian colonies, including Tasmania, but yal assent was withheld and the act lapsed.

In response to repeated protests from the Australian colonies the nperial Parliament passed, in 1873, the Australian Colonies Duties ct, granting to the British colonies in Australasia the right to establish ade reciprocity between themselves, but continuing the prohibition gainst preferential duties on goods imported from other than Ausalasian countries, regardless of whether they were British or foreign ountries. New Zealand was included by this act among the colonies o which the Australian colonies could, if they had chosen, have ranted the tariff preferences. The establishment of reciprocal referential arrangements with the British colonies with which New Lealand was most closely connected, both geographically and comnercially, was thus made possible. The constitutional restriction against the grant of intercolonial preference by the Australasian colonies to any other British colonies was finally removed by imperial statute in 1895, following upon the resolution of the colonial conference at Ottawa in 1894 urging such removal.

THE MOVEMENT FOR PREFERENCE TO BRITISH PRODUCTS.

The movement for imperial preference in New Zealand received its greatest stimulus from the colonial and imperial conferences. New Zealand took little part in the first colonial conference held in London in 1887, but at the colonial conference held at Ottawa in 1894 at the instance of Canada, the New Zealand representative gave his support to a resolution urging "that provision should be made by imperial legislation enabling the dependencies of the Empire to enter into agreements of commercial reciprocity, including the power of making differential tariffs with Great Britain or with one another." He did not, however, support another resolution which expressed the belief of the conference in the advisability of "a customs arrangement between Great Britain and her colonies by which trade within the Empire may be placed on a more favorable footing than that which is carried on with foreign countries," and further, "that until the

158 Victoria, Ch. 3. See p. 643.

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