APPENDIX D.—REPORT ON GERMAN TARIFF.
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March 27th, 1901, in which it was stated, “ the rise is hindered somewhat by
“ Dutch and Belgian competitors, especially in the English home trade,
“ which is chiefly possible through German rolling mills furnishing them
“ cheap raw material.” (Wire nails are, of course, made from wire rods.)
The report goes on to say that for the home trade the price of wire nails is
19^ marks per 100 kilogrammes, i.e., 9s. 11 d. per cwt., and for the English
market 7s. to 7s. 6d. per cwt. f.o.b. Rotterdam.
As to files also (No. 812), it has to be noticed that while the draft tariff
proposes to decrease the duties on those over 35 centimetres long, it also
proposes to very considerably increase the duties on the smaller sizes. The
large files, according to our information, are seldom imported into Germany
from the United Kingdom, and it has been represented to us that the
increase in the duties on the smaller sizes is evidently intended to destroy
such trade from this country in such goods as still exists. The Sheffield
Chamber of Commerce assert that they are in a position to produce evidence
showing that for several years contracts for files have been taken by
Remscheid firms in neutral markets at 20 per cent, cheaper rates than the
cost of manufacturing similar articles in this country, a fact which surely
seems to indicate that the additional protection proposed to be accorded
cannot be required even by the most Protectionist of German manufacturers.
Further, with regard to steel pens (No. 840), our information is to the
effect that the present German import duty is already so high as to preclude
competition in many kinds. In addition, our pen makers allege that a
Ministerial decree is in operation in Germany which prohibits all German
officials from using imported steel pens, and it would seem therefore that
German makers already enjoy all the advantages they can reasonably expect
from a protective Government. The raising of the duty still higher would
practically shut out Knglish pens from the German market entirely, and at
the same time it has to be pointed out that German pens are free of duty
here and that no goods of German origin are prohibited in British public
offices.
Generally speaking, as regards the category of iron and steel and iron
and steel wares, we are assured that while the existing tariff is protective
the proposed new one would be virtually prohibitive, and it cannot be
expected that virtual prohibition would be looked upon with anything but
disfavour and resentment by our manufacturers, seeing that competing
German goods are imported into this country duty free.
Turning to machinery, a glance at the particulars under this head in the
appended statement will be sufficient to convince anyone of the drastic nature
of the changes, both as regards classification and duties, proposed to be made.
As an instance of increase of duty, we may point out that a small machine,
weighing about 100 kilogs., of the class falling under No. 904, and consisting
largely of cast iron, would under the existing tariff have to pay a duty of
3 marks, whereas under the proposed tariff the same machine would have to
bear a duty of 20 marks—more than six times the present rate. As to
spinning machinery, the exports from the United Kingdom to Germany in
ordinary times are of considerable amount, and a fair business is also done in
weaving machinery, although the competition of German machine-making
establishments in this branch has of late years been keen. German spinners
and manufacturers are said on the whole to prefer British machinery to all
others ; consequently, the proposed additions to the duties cannot be a matter
of indifference to them.
With regard to machine tools, the exports of these to Germany are also
of considerable importance. They have hitherto been admitted, if the
preponderating material has been of cast iron, at the rate of 3 marks
per 100 kilogs., and this duty is proposed to be increased to duties
varying from 4 marks to 20 marks per lOO kilogs , according to weight, the
heaviest kinds paying the lowest rates. Considerations of freight will prevent
a large trade being done in the heavier descriptions, but the increased rates
on the lighter kinds, the trade in which is at present a growing one (showing
that German makers cannot of themselves supply home requirements), will
undoubtedly affect exports of such articles.
E 31200. r.
