Appendix d.—report on german tariff.
19
1899-1901 was over 31 million £, while the direct exports of British produce
from this country to Germany was under 26 million £. For the
three years 1879-81, 20 years ago, the corresponding figures were, imports
23 million £, exports 18 million £; while 10 years ago (in 1889-91) the
averages were, imports 27 million £, exports 19 million £. The increase
in our imports from Germany in the 20 years has been 8 million £, or
35 per cent, on the average, and in our exports to Germany 7 million £,
or 39 per cent, it is clear, therefore, that both countries have reaped
considerable advantages from the condition of affairs hitherto existing,
advantages which have by no means been diminished on either side by the
German tariff reductions established by the operation of the commercial
treaties concluded by Germany in 1892. As matters stand, too, we are
among Germany's best customers, 12 per cent, of Germany’s import trade
(according to the German official trade statistics for 1898-1900), and 19
per cent, of her export trade, being trade with the United Kingdom, It
would appear, therefore, from all these figures that Germany has more to
lose by placing restrictions in the way of the development of the trade
between the two countries, which is being carried on to the mutual advantage
of both, than the United Kingdom has, especially when it is seen from the
British trade statistics that our direct imports from Germany only amount to
about 6 per cent, of our whole import trade, and our direct exports of our
own produce to Germany to only about 9 per cent, of our whole export trade
in such produce.
Into the matters of internal policy which may have weighed with the
German Government in proposing some of the increased rates of the draft
tariff, we cannot, of course, enter ; nor is it our business to inquire how far
that Government may have been influenced in their proposals by the pressure
felt by German traders (and felt equally by British traders) of increased and
protective duties in other markets. Two facts, however, cannot be too
strongly insisted upon, viz., that no duties of customs are levied in this
country for protective purposes, and that in no Other country are
German products and German trade treated as favourably as they are in
the United Kingdom. As a mere matter of equity it must be urged that
it would be unreasonable for Germany to penalise British trade on account
of the impediments placed in the way of the development of her own trade
by other nations, and it would similarly seem to be inequitable, in the
circumstances, to mete out to British trade the same treatment as that
accorded to the trade of countries such as the United States, which levy
heavy protective duties on German goods. The impression, however, has
certainly obtained a footing in this country that some of the new German
tariff proposals have been specially framed to hit British trade, and an
examination of the facts in some lines would tend to afford ground for
such a belief.
We append a statement showing in detail some of the principal paragraphs
of the draft tariff to which exception is taken by British manufacturers and
merchants, and comparing the proposed new rates of duty with those which
are at present in existence. A merely casual glance at this statement, which
shows that the rates of duty on most of the articles mentioned are proposed
to be largely increased, and, in some instances, advanced to quite a prohibitive
point, will serve to explain the impression-alluded to above, which
has undoubtedly afforded additional support to the arguments and representations
of the advocates in this country of some form of retaliation.
Resolutions in favour of the adoption of a policy of retaliation on German
trade have even reached us from some important Chambers of Commerce.
It is no part of our function, and it is certainly foreign to our intention,
to offer any criticism upon the policy of protection adopted either by the
German or any other Government. But it is difficult to see on what grounds
the increased protection now proposed to be given on many important groups
of articles can be justified from the German point of view,"or what benefit, at
least to the German State revenue, can be expected to result from it. We take
as examples the three most important groups of manufactured articles in
British export trade—cotton tissues, woollen tissues, and iron and steel goods.
According to German official statistics, the quantities of cotton piece-goods
C 2