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·VIEWS OF THE GOVERNMENT OF INDIA
ON THE QUESTION OF
PREFERENTIAL TARIFTS
IN THEIR RELATION TO INDIA
OALOUTTA:
OFFICE OF TIIE SUPERISTEYDEXT OP GOVERNIENT PRIXTIYO, INOLA.

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·TABLE OF CONTENTS. Laos Despatch from the Government of India, to the Secretary of State for India, No. 324 (Finadoe), dated Simla, the 22nd October 1903. . 1 11 Enclosures to the above. 1. Minute by the Hon'blo Sir E. FG. Law, K.C. G., with tho following aanexares:-. (i) Statement showing the aretage of the value of Esports of Indian Merchandise to the British Possessions and Foreign Countries, during the five sears ending with the year 1902-03 34 30 (ii) Statement showing the average of Imports Into India from the British Possessions and Foreign countries, during the five years ending with the year 1902-03 . (ii) Statement showing the approsimato percentages of Import duties leviel in the United Kingdom, Austria-Hungary, Belgium, France, Germany, Holland, Italy, Rosain, the United States, end Japan, during the year 1902-03, on the principal articles esported from India to those Countrics. 2. Statement showing the value of Esports of dian Cerchandise to the British Possessions and Foreign countries daring the year 1902-03 3. Statement showing the rolte of Imports into India from 11 e Britigli l'obsessions and Foreign countries during the year 1902-03 39 10 42

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·VS OF THE GOVERNMENT OF INDIA ON TIE QUESTION OF PREFERENTIAL TARIFFS IN THEIR RELATION TO INDIA. BEING A DESPATCIL TO THE LIGHT HON'BLE THE SECRETARY OF STATE FOR INDIA, No. 324 (Finance), dated Sumia, the 22nd October 1903. Lorl George Hamilton's telegram of the 7th August 1903, Ilis ference of Colonial Prime Ministers in 1902 in favour of Preferential Tariffs as between different members of the British Empire; be stated that His Majesty's Government were then considering how far it tras possible and desirable to give effect to this recommendation; and he intimated his desire to rcceive from us any observations and suggestions which we might wish to make from the point of view of Indian interests. 2. A rcference to the terms of the Resolution in question sbows that thic iccommendation in favour of preferential tariffs was of an extremely general and indefinito character, and that it was hedged round with ...i da admit of almost any limitation, tice to the conditions of any us in the nature of a definite circumstances we can pro- Doubce with confidence; and to determine wliether on a priori grounds at ..... Wanion tane object wich is assumed to underlic the policy, and more particularis in victy of the import ince which the whole question bas recently developed in tlio public mind, we consider that the attempt should be made. We havo accordingly cndeavoured in tlns slespatch and its enclosures to examine the conditions of Indian trade and finance in their relation to our present tariff, and to consider how they would be atfected by any scheme of preferential cluties within the Empire, and whether it would be to the advantago of India to participate in any sucu schemc. As will be seen hereafter, our conclusion on the last question is that it is unlikely that material advantages could be secured to Indian trade. We have therefore further considerei whether any change in our tarilf policy is expedient, and if so in what direction it may be advantacous to move.

·2 VIEWS OF THE GOVERNMENT OF INDIA 3. We give below the figures for the import and export trado cf india, exclusive of Governmeut stores and treasure, during the year 1902-03-a year which, though generally favourable, presented no exceptional or disturbing features -and in the enclosures accompanying this despatch will be found similar figures for the five years' period commencing with 1898-99:- Imports From the United Kingdom 34,849,000 From other British possessions 4,995,000 From Foreign countries . 12,681,000 TOTAL 62,525,000 Exports- To the United Kingdom 21,165,000 To other British possessions 18,061,000 To Foreign countries 44,694,000 TOTAL 83,920,000 . 6 It is necessary to make an adjustment in the figures of the export trade to British possessions. These include more than 6 millions sterling worth of exports to Hong Kong and .5 millions sterling worth to the Straits, A considerable part of the latter and almost the whole of the former are really destined for China and Japan. A round sum of 1 millions sterling should therefore be transferred from the figure of exports to British possessions to that of exports to Foreign countries. The adjusted figures would then stand thus- Exports. To the United Kingdom 21,165,000 To other British possessions 11,061,000 To Foreign countries 51,694,000 . . TOTAL 83,920,000 The nature of the chief articles of export trade and their destinations were as follows: To United To other British To Foreign Total. Kingdom. countries. possessions. £ € 1. RAW MATERIALS 11,379;000 1,002,000 26,984,000 39,365,000 (chiefly cotton, jute, seeds, hides and skins, 'hemp, dyestuffs, lac and silk). 2. FOOD STUFFS (chiefly 18,172,000 6,083,000 9,675,000 23,930,000 tea, coffee, wheat, rice, and spices). 3. MANUFACTURED GOODS 1;335,000 2,759,000 10,500,000 14,594,000 (chiefly cotton twist and yarn and piece goods, gunnies, and woollen goods). 4. OTHER ARTICLES 279,000 1,217,000 4;535,000 6,031,000 TOTAL 21,165,000 11,061,000 51,694,000 .83;920,000 ·ON THE QUESTION OF PEFERENTIAL TARIFFS. 8 4. It will have been observed that about thrie-fourths of our total imports come from the British Empire. Of the remaining one-fourth, a substantial part consists of articles such as petroleum, beet sugar, wines, silk manufactures and the like, which the British Empire .either does not produce or is not in a favourable position to supply. It is also acen that our imports from the British Empire exceed on exports thereto by 7 millions sterling; that on the other hand our exports to foreign countries exceed our imports therefrom by about 38 millions sterlingu and that our total exports exceed our total imports by upwards of 30 millions sterling. 1nasmuch as India is a debtor country, it follows therefore that we are at present dependent on our trade with foreign countries for the discharge of our net international obligations. Thus is an element of the first importance in the consideration of the present question and we shall return to it later. 6. We have now to consider the manner in which our trade, both iraport and export, is affected by existing tariffs. In respect of imports the Indian tariff, as you are aware, with one or two abimportant excep tions, imposes duties purely for revenue purposes. It is entirely free from any trace of preference, and from ang protective intention. With the exception of a very few specially rated articles, of which the chief arc petroleum, salt, and mines and spirits, its ruling feature is a low duty of 5 per cent. ad ralorem, which in the case of cotton piece-goods 15 reduced to St per cent. and in the case of iron and steel to 1 per cent. The free list is not very extensive, but includes the important items of machinery and cotton twist and yarn. In the case of cotton piece-goods and of sali, an excise duty is imposed of an amount eqnal to the import duty; "While we do not deny that, in theory, some minute protective effect may be attributed to our present system, yet we bold that such effect is quite insignificant in practice, firstly, because in the case of the largest articlo of import, and some minor ones, an equivalent excise duty is imposed : secondly, because a large part of the imports consists of articles which, either in kind or quality, India does not produce at all: and thirdly, because our general import duties are on a very low scale, such would in most continental countries be regarded as merely nominal. Almost the only esception to the general rnle is the duty on retroleum. Our countervailing sugar duties we do not regard as protec tive in the true sense of the term. 6. Tith regard to our exports, the situation is more complex. T..-11. - - L. 41 , 11- of this feature of our trade is clearly broaght out in 'lable C attached to the Wlinute of our Honoamble Colleague sir Edward Law, which forms an enclosure of this despatch. Thus, our seeds, the export value of wbic amounted ------ sphere, except in C United States of .. orier.on oncor tiro classes only. Our raw cotton, valued at nearly 10 *11!

·VIEWS OF THE GOVERNMENT OF INDIA C. millions sterling, is free except in Italy and Russia. Raw jute valued at nearly 7 millions sterling is free everywhere except in Russia. Our lides and skins, exceeding in value 55 millions sterling, are free except in the United States and with some slight exceptions in France and Japan. Our dye stuffs, valued at nearly 14 millions sterling, are free except in Germany, Russia and Japan. Similar remarks apply to numerous minor exports of this group, such as timber, raw silk, wool, hemp, manures, and cattle fodder. Even when duties are imposed, tlicy are as a general rule of moderate amount. Deducting the items whick are subject to duty, and which approximate to 3 millions sterling in value, it will be seen tbat raw materials to the aggregate value of 214 millions sterling obtain free entry into the more important foreign countries concerning which we have definite information on this point. This somewhat exceeds 25 per cent. of the whole volume of our exports of all classes taken together. 7. In the three other classes, this privilege does not obtain except in the United Kingdom and Holland, and in the vited Kingdom tea, coffee, tobacco, and unrefined sugar are subject to very high duties. Excluding these four articles, the value of our exports to the United Kingdom in the three classes of food-stuffs, manufactures, and other articles, amounted to nearly 5 millions sterling, all of which obtained free entry. Raw materials to a value exceeding 11 millions enjoy the same advantage. 8. The net result is that Indian exports to a value exceeding 38 millions sterling and approximating to one-half of the entire volume of our export trade are admitted free of duty into the consuming markets, while of the remainder a considerable proportion is either subject to relatively moderate duties, or, as in the United Kingdoin, to duties imposed for purely revenue purposes and with no attempt to differentiate against us. This remarkable and gratifying result is directly due to two causes, viz., (1) to the favourable fiscal policy of the United Kingdom, and (2) in far greater degree to the nature of the bulk of our exports, which consist in great measure of raw materials which are an object of importance, if not of necessity, to the countries importing them. The great advantage which our trade thus obtains appcar's likely to endure so long as the causes creating it continue to operate. 9. The question now presents itself, how is the present condition of things likely to be affected by the inclusion of India in any scheme of inter-Imperial preferential tariffs? And here we are confronted by the difficulty that we have no definite information-it may indeed be said, no information at all as to the terms on which it may be proposed that India should join in such a system. Tuo possible alternatives have however presented themselves to us, and we propose to discuss cach of them in turn. 10. In the first alternative India might join the scheme on exactly the same footing as any of the self-governing colonies, and would, if need be, impose duties of a protective character, against imports from the United Kingdom and other parts of the British Empire, subject to the condition that, so far as her circumstances permitted, she should give substantial preferential treatment to the products and manufactures of ·ON TIIE QCESTION OF PREFERENTIAL TARIFFS, the United Kingdom. This privilege would be conceded without requiring India to currender any advantage which she now possesses in the home market, anl without withholding from her any additional advantage in the form of 'preferential treatment which the Home Government might resolve to nccord to other dependencies of the Empire. In this connection we do not propose to dwell on the possible conse. quences to India of any action that might be taken by foreign countries as a result of their partial exclusion from our markets. That essentially important point will be considered later on. It is sufficient to say that this alternative is not, so far as we can judge, within the sphere of practical politics. All past experience indicates that in the decision of any fiecal question concerning this country, powerful sections of the community at home will continue to demand that their interests, and not those of India alone shall be allowed cocsideration. It has already been 1 21 TY t 411 1 .. three times as great. If Indian industries are in need of, or should not desire, a measure of protection, protective measures would necessarily feriously affect in ports from the United Kingdom, and sould only in & secondary degree affect those from foreign countries. We cannot imagine that the merchants of Lancashire or Dundee, to mention two interests alone, would be likely to acquiesce in such a course even though it nere accompanied bo.11'hihe-lution and the famit would be accepted by this alternative as beyol .11. In the second duties on British and Colonial goods, at such low general rate, equal to or somewhat less than that now in force, as may be required for revenue purposes and nould impose a slightly higher rate on forcign goods, sufficient to give the former class a preference of 25 per cent, or there abouts. 12. The results of a. to the United Kingi shown in his Minute, although British imports into India to the raluc.of 23 millions sterling ore practically secure from foreigu competition even under present -conditions, yet there remain imports of the value of approximately 10 millions sterling in which effective competition prevail. In respect of these & fubstantial preferential tariff against the foreigner would be of material benefit to the British manufacturer, 13. But as regards India, the balance of advantage is distinctly adverse. In the ful.. 1. S...! 10 shape our policy not in accordance with to the interests and demands cf cther condly, we should lose a portion of the revenue that we receire at present from British and Colonial imports, being left to make up the deficit by enhanced duties on foreign goals. As the latter are only from one-fourth to one third as great in value as the former, it might prove difficult la sccure in & suitable manner the maintenance of our present revenue from ·6 VIEWS OF THE GOVERNMENT OF INDIA Customs. The last and greatest source of injury, viz., the probability of retaliation by foreign countries, and its consequences to our trade and our financial situation, is discussed in a later paragraph of this despatcbi. On the other hand, the preferential advantage which we might hope to receive is ncither large 'nor assured. If duties are not to be imposed on raw materials imported into the United Kingdom, India can receive no advantage in the home market for these. In the case of tea, India and Ceylon alrcady divide between them more than nine-tenths of the trade of the United Kingdom. A reduction of the present duty of 6d. a lb. might not improbably stimulate consumption and would so far benclit this country, but for preferential treatment as such there is very little room. In the case of wheat there is ample room; but the supply from India, through increasing, is still uncertain ; any advantage tat might be given would be shared not merely with Canada. Australia, and New Zealand, but also with growers in the United Kingdom itself; and moreover it eccms inevitable that any duty that may be imposed on this article, and therefore any preferencu to India, must be of relatively small amount. In the case of rice, India already supplies two-thirds of the demand in the home market. The ovly considerable articles of consumption that remain are coffee and tobacco. Of the former, our total exports to all countries amount to only about one-third of the forcign import into the United Kingdom, and a large proportioncxceeding £200,000 worth per annum-finds a profitable market in Franco notwithstanding the relatively heavy duty levied in that country. Indian tobacco is at present very unfavourably treated in the United Kingdom, being subject to the same specific duty as the higher valued American article. If the two were placed on a footing of cquality, and still more if the Indian article were accorded preferential treatment, oùr trade should receive a considerable stimulus, although pipe tobacco, for which the demand in England is so large, has -not hitherto been manufactured successfully in this country. We may add that Indian indigo would benefit by discrimination against the artificial product. As regards this second alternative, we are of opinion that a preference of one-fourth calculated on a very low rate of duty, would be of little material advantage to British manufacturers esporting their ivares to India, A larger proportionate preference, or the same proportion calculated on a relatively high rate of duty, would be likely seriously to affect the trade of foreign countries in manufactured goods, and in proportion as it benefited the British manufacturer would tend to embroil us with the foreigner and provoke the latter to measures of retaliation. 14. This brings us to the consideration of the very important ipoint to which reference has been made in more than one previous passage of this despatch, viz., the possibility that the concession of a preferential tariff to British goods might lead to reprisals by foreign nations, and the consequences thereof to our trade and our financial position. This question has been considered with much fulness by our Honourable Financial Colleague Sir Edward Law in a Minute which is annexed hereto. Our Honourable Colleague lays great stress on the fact that a large proportion of our export trade consists of raw products and that foreign coun- ·ON THE QUESTION OF PREFERENTIAL TARIFFS. tries are interested in obtaining these at the cheapest rates, as well as in supplying us with their manufactures. He has diecussed with abundance of detail the trade of India with each of our more important foreign customers, and has shown the extent to which, in bis judgment, the cardinal fact above stated is likely to prove effectual in averting retaliation. His riety is that in respect of a number of these countries, the position of Iodia is one of considerable defensive strength, but that this is not the case with every country nor by any means with regard to all classes of produce esported; and he arrives at the conclusion that, with A few possible exceptions which he enumerates, it is more in the interest of India to leave matters as they are than to embark on a new fiscal policy, unless by its adoption very great advantages should be secured for our exports to the United Kingdom and the Colonies 15. We desire however to state rur opinion on this point somewhat more emphatically tban cur Honourable Colleague has done. As already explained, we are not of opinion that India can expect very material advantages in the Imperial market by any measure wbich appears to be within the range of discussion. On the other hand, our Honourable Colleague may have underrated both the power of retaliation rhich foreign coantries possess, and also their readiness to use it. We are fully. alive to the value of the safeguard that we possess in the fact that 80 much of our exports consists of the materials itsed in foreign industries, and te beheve that; in normal conditions, foreign nations will be deterred by the powerful motive of self-interest from striking at ng lest in doing so they might injure themselves But it would seem to us to be unwise to rely too much upon the hypothesis that India enjoys an effective monopoly in any large number of articles which are essential to the cxistence of foreign industries. Such a monopoly we at present hold with regard to jate aod rerhaps the coarser classes of jute manufactures, as also in til seed, lac, teak wood, myrabolams, and mowrs, while in some other articles we enjoy advantages of the nature of a modified monopoly owing to their limited production in but very fery countries. With regard horrever to the greater portion of our exports, they compete successfully in foreign markets by reason of their cheapness rather than of their qnality or kind. We cannot feel confident that the conditions and requirements of foreign industries have yet been ascertained with the precision and fulness necessary to make them a sufficiently broad and Etable basis on which to rest a fiscal policy of very problematic value to India, whilst the consequences of failure might result in irreparable disaster. 16. In this connection, the desire to emphasize, with all the weignt at our command, the argument elaborated in paragraph 138 of onr. Honourable Colleague's Minute. The factor there stated is peculiar to India, and differentiates her case in relation to the matter under discus. Bion from that of any other member of the Empire. India is a debtor country. Her net obligations are approximately 6 millions sterling per mnam. The major part of this great charge is payable in a currency Eifferent from that ia which ber revenues are collected. The only means -nsistent with national solvency of discharging this obligation lies in e preservation of an equivalent excess of exports over imports; in other ·VIETS OF THE GOVERNMENT OF INDIA words in maintaining a sufficiently favourable balance of trade. It is therefore a vital object rith us to stimulote our esports by every means in our power, to seck new markets and develop old ones, and to remove all obstacles which stand in the way of growing external demand. If, thien, notwithstanding the safeguards which tre possess, the should unhappily be drawn into tariff wars with powerful countries, it cannot be doubted that, whichever way the ultimate rictcry might incline, our esport trade would for the time being bc injuriously affected. Such a resnit would be fraught with the gravest consequences. By ten years of effort, sacrifice and prersererance, we have slorrly built up a fair measure of public confidence in the stability of our finance. Exchange has been stcadicu : our credit is good and improving : our rupec securities are rising in relative value in the London market: and tre hare created the nucleus of a reserve of gold. But if by a change of fiscal policy the balance of tmde in our fnvour should durindle or disappear, the rhole trork of ten years would be sacrificed ; and the setback to our trade, our terenues, and our credit would immensely out weigh any benefits that tre might reasonably crixct from the most unconditional surrender of our opponents in ilie war of tariffs. We cannot sufficiently impress this danger on your attention. Even if the cbances of success were greater than tre conceire them to be, we hold that the certain cost of the struggle and the serere penalties of defeat Trould be too heary a price to raj. 37. Oor conclusions then, hased on the imperfect information before us, and having regard to the hypothesis which tre have framed as to the terms on which India might participate in a policy of preferential tariffs within the Empire, are as follors: Fireilu.--That without any such system, India already enjors a large, probably an exceptionally large, measure of the advantages of the free exchange of imports and exports. Soccudly. That if the matter is regarded exclusively from an cconomic stand-point. India has something, but not perhaps rery much, to offer to the Empire; that she has rery little to gain in return; and that she has a great deal to lose or to risk. Thirdly. That in a financial aspect, the danger to India of reprisals by foreign nations, even if crentually unsuccessful, is so serious and their results fronld be so disastrous, that the should not be justified in embarking on any ner policy of the kind unless assured of benefits greater and more certain than any which have, so far, presented themselves to our mind. IS. TTe bare pot arrived at the last stage of our enquiry, tizo whether any change in onr present tariff policy is expedient, ard if so, in what direction. And here it has been brought home to us by recent ererits that, eren without any hostile action on our part, it is possible for India to become the object of attack by foreign Lations. In 1900 the action of France in proposing to subject imports from India to the luigher or "general" tarif in place of that formerly applicable to them was not due to anything we had done, but, so far as we can ascertain, was merely a move in the impending conflict between tbat country and ·ON TILE QUESTIOY OF PREFERENTIAL TANFPS. 9 Brazil. Alore recently, the threat of Russia to enhance her alrcady erorbitant duty on Indian tea followed the passing of the Sagar Conten. tion Bill in the Imperial Parliament. In the former case, we were 1 1 1 1 1 : 'gar and tis very nost iate 11 pedal enhancement to which our coffee and pepper mould other in been subject. (The terms of the Convention were however really much more favourable to France than appears at first sight.) In the latter case, we advised Lord George Hamilton that we should be prepared to impose a differential daty on Russian petroleum. In both cases, nego. tiation was rendered possible by the fact that India possesses an import tariff, and in the latter case by the further fact that we have announced our readiness, in case of need, to differcatiate against the goods of a country which assumes a hostile attitade. Is is possible also that the course taken by India in 1899 ia imposing countervailing duties on bounty-fed sugar may have bad some share in inducing the bounty- Conference, whose 3 securing greater · resolve to adopt onceivable that the device of attacking her through her chief dependency might receive event, of between made the battlefield of conflicting interests with which she has no dircet concern. A foreign country, secure in the possession of a free and equal market for its goods in India, may be emboldened to penalize Indian trade in order to bring pressure to bear on the Mother country or the Colonies. This is a danger which we might be called upon to meet, and other nations will probably be less likely to adopt so injurious a course if they are led to know that re shall be prepared if need be to retaliate in kind upon their imports into India. 20. Even where no actively, hostile action bas supervened, and 1.1.-1., -1..Fr. :11.. matches and silk are in any case sceure of equal treatment in India lias match, only ·10 VIEWS OF THE GOVERNDIENT OF INDIA be adojited witli the greatest caution and in the last : resort, and in circumstances which in tlic most careful judgmcút afford a strong assumnec of success. We would avoid all tariff vrars, and we recognize: that it would be a calamily should we become involved in such struggles, with the important purchasers of our exported producc. In no circum-: stances whatever should we allow a policy of retaliation to develop into one: of aggression. All that we seek is that we shall not be pledged in advance to accord equal treatinent to the imports of all countries alike, irrespective of whether they penalize our cxports or not. . And we are: liopeful that the mero unouncement thint our lands are free will of itself; sutlice to maintain is in the enjoyment of that considerable measure of fruc exchange which we already possess, and from time to time even to: extend it.

·ON THE QUESTION OF PREFERENTIAL TARIFFS. MINUTE BY THE HON'BLE SIR E. FG. LAT, K.C.M.G. The question of Preferential 'Tariffs is in itself one of extreme difticulty, and, in present circumstances, the difficulty of its discussion is rendered almost overwhelming by the fact that we do not know the exact line of policy which must be discussed. 2. Roughly, three general systems are recognised, which may be classed as Free Trade, Fair Trade, and, Protection. The actual system prevailing in India to-day is neither pure free trade, as it is anderstood by its doctrinaire votaries, por fair trade, nor protection. 3. Fair trade has not been adopted as a principle in India, although we recently made a small step in that direction when, by negotiation with France, we secured better terms for the importation of our coffee into that country, by making some concessions in duties charged on the importation of one or two articles of French prodaction into India. Fair trade, as I understand it, is a system of reciprocity which, I take it, means in practice being prepared to put a sufficiently high duty on rome or all of the imports from another country with which traling transactions are large, to check or even stop certain of such imports unless that country makes some concessions in tariff rates on those articles of exports the trade in which is threatened by the duties they have imposed or intend imposing. Fair trade requires keen bargaining in commercial treaties and that such keen bargaining may be successful, it is absolutely necessary that the negotiator should be thoroughly versed in the conditions affectiny trade in each individual article which he has to consider, alike with reference to the interests «f his own country, and those of the country with which he is negotiating. As an instance I may point out that, whilst in negotiating with Russia it might be practical politics to press for a reduction in duties on Birmingham goods, it would be useless to ask for a reduction on Manchester shirtings or prints. The amoqnt of capital suak in cotton mills in Russia 18 80 large that any serious competition with their trade would produce a widespread industrial, and probably financial, crisis which she could not atford to risk. 4. In my opinion, such detailed information and experience as is required for the successful pegotiation of commercial treaties on a fair trade basis, in the interests of the United Kingdom, is not at present available The coquiry which His Excellency the Viceroy lias suggested should now be made, may do something towards providing a small portion of the requisite knowledge, as rezards Indian interests; but, eren as regards the trade in articles of export from, or import into India, we ought to know, not only the trade conditions with regard to such articles in India, but also these in the United Kingdom and the various foreign countries with which our commercial transactions are of import- We must know where and how the shoe may pinch in each country with which we deal, in order to know how suitably to caso it when advisable, or make the pressure felt when necessary. ance.

·12 VITS CITS GOT CE TIL 7. The isolated istuce ci tie chimice cmnes leries is - izgortal seu car wat te ducir cassat 28 % ETERISTISU nagement, altcougt i periars saFCCS ci tini matum. Extatiem. as I understood it. Wels 3 Caterinärz frotalt ECDE CITESTI lircerise tine in partice creacties ci fa riserat at the risk ci niste prices to be lone CCESTIER, Carles Det er iz bis Chri CTR IR TECESSOIy ich tier tresicerations Le enteri cizges réproteca-I} Tuah mes Go ermenis acuerpo tcu freeiriac terrac tie ruistablica ci fatzewon agzinst competition for fcrage rivals ze virs encounter- Frézetica with its restag icastro acc frumu! crises.TERO Frotactice may te accided incestries for raza lori Unsus Eru Ey made the Eartumla te permit cf tis gerici Este basiess. The tritac Satas late thiec zeer stram ci siz pritzetica. Germany vis certainly time to time is 10 but since therry Eare ceer reservies weet some me attribute to 12 tune system cf frtzence, iterge se marms PT üce situation care to be take into considersch. Dlat, ietver cenam CI zotI do not believe what the protesice is sesentele czË. Fussia has eclared in a commercio y asistenci protetor, 220 E my critice the ccLarsis CIA to Fricche marine teze girez iz tile most usm2tle mazze IT EILUTIN is esaswent ci indistes for vice Ice CCICICTS vers lisicais able. Izcze tie eggenta CE FISTERTOE to zwalema tome of cizer industries väich ma cze time iure frete. Ea sa te forced into 32 cabezlar Ect-ices D. Jocins Frames Camera Tle esperierce ct these time cctures des Dot ITER 102risisfactory Erceace either citie viversi come i prctZWII. T CË E Cirersal Warmness. 6. Completa free trice, as it is career Oicarias, Ta ime Ict get in Inc, cu cas es acrit le : castrim LTE 30 Estlariean cr Iered Jü recetas or cures in aclmJCS TO wiat bare teer Issued to be the interest: ci halus (330 ci Erüsiz tice, as mans cetace geces ICT r i im ficc. se gece me ECTETET: CE is beum inimi it. Fier to STIE Cesideridicis: 2 Is tindrs importe Intries is act. Is as the 107. mimarine cevi CuTe by custics das I thinh tuas E ILUL FS is ICI per tres race was to eriarste ccher uncenisa stams 7. Erimi Fius, tie fiut tias tie vaire certs for Inc Greige coezes grea:IT enceis tie time i com Cetztries iste ises, tal arfer to izbaia bat 150 Tec mon to lose raz to gain by acogtingI ci retratamento 7349s grejačical a surties ciznes imetza izde In IC tante is then u discriminata agus wie is ons com llis Botever: pracably as Gingerces is generis ufus cft S ULT caizr ceterad tik tie inacota quasar teir is It is criere tiat i täis geensis priznale zčicsore te 20 CEUTIS ET to the Tirited Kingdom of a treci przfirst cutic Iců be disa?

·OY THE QUESTION OF PREFERENTIAL TARIFFS. 13 8. The total annual value of Indian crports to all foreign countries, exclusive of the United Kingdom (and including exports to Chica through Hong-Kong and the Straits Settlements) is approximately 55 millions sterling, whilst the value of our imports from these countries is about 17 millions sterling. This aspect of the question would appear to give, as regards comparative total values of our export and import trade with foreign countries, a mach larger field to the latter for retaliation, than is opsa to us for the imposition of duties on their manufactures; but a close examination of the question shows that tho correctaess of this conclusion is dependent on a number of factors which must be carefully considered in detail. The first is, would it pay the foreign countries in question to put such extra duties on their imports from India as would be necessary for effective retaliation, should we imposc higher dutics on the articles we receive from them? This question can only be answered if we can pronounce as to the necessity which they may be under to continue importation from India. I think that auch a necessity exists to a greater or less extent, as regards many important articles of export from India, and I may cite, as examples, those shown in the subjoined table, with the average value of our exports of each to foreign countries excluding the United Kingdom, during the fivo years ending with the year 1902-03 :- £ Opium 6,470,000 Indigo 1,120,000 Myrabolams 110,000 Mowra 90,000 Jute 3,400,000 Jute manufactares 4,300,000 Teak wood 160,000 LAC 470,000 Til 1,450,000 TOTAL 16,630,000 9. In the production of most of the articles above scheduled, India enjoys a practical if not an absoluto monopoly, and if foreign countries require them they must import them from India, and therefore, except in so far as, to their own prejudice, an increase of duties may diminish consumption, enhanced tariff rates will not affect their importation. The value of - nube af minnirnband win fori illinna pealinna in conncction with the question under discussion. It is, however, not only in connection with articles in which India enjoys a practical mono- .er-1...-- Il Piano - 1.lt 1. India is so limited that any increase in the price to the forciga consumer of the article imported from India would inevitably result in an increase in prices all round, and this would certainly not prove agreeable to the foreign consauer. Among such articles I may mention ricc, hides, skins, certain classes of drugs, oil-seculs generally, and spices, as regards ·14 VIEWS OF THE GOVERNMENT OF INDIA all of which production is limited to a relatively small number of countries. 11. I propose to consider the trade of India with each country in turn, with which our commercial relations are of importance, and as far as available information permits, to consider also the conditions of that trade as regards the demand for the more important individual commodities exchanged. 12. Indian trade with China far exceeds in importance that with China. any other country except the United Kingdom. The average total value of import and export trade together has during the five years ending with 1902-03 approximated £4,310,000. But this figure represents only that tabulated in our statistics for direct trade with China; it does not include trade through British Colonies in Asia, and as a matter of fact the great proportion of Indian trade with Hong Kong and much of that with the Straits Settlements, is merely a transit trade for China. The value of the export trade to Hong Kong averages approximately £5,730,000, and if we admit that even 20 per cent of the exports to the Straits Settlements are destined for Chinese markets, we arrive at a total of approximately - 11 millions sterling as the average value of our export trade with China. 13. Our trade with China, whether export or import, will however not be affected by the adoption of a system of preferential tariffs with European countries, or British Colonies and Possessions. The conditions of trade with China as regards tariffs have been quite recently fixed by treaty, and must remain the same, independently of what we may do with other countries, at least until the expiration of the recently concluded treaty. We may therefore omit trade with China from the consideration of the question under discussion. 14. After China, the most important country with which we have · to deal is Germany. The value of our .ex- Germany. ports to Germany, during the past five years, approximated an annual average of £6,000,000, whilst the average value of our imports from Germany was approximately £1,500,000. 15. The most important articles exported to Germany are raw cotton, for a value of approximately £1,230,000; raw hides for approximately £910,000; raw jute for about £1,330,000; linseed for approximately £810,000; rapeseed for approximately £450,000; and til seed for approximately £130,000. The aggregate of these values exceeds 4.5 millions sterling, or in other words, the total value of the exports of these commodities is approximately 80 per cent. of our total exports to Germany. If we examine the nature of the demand for these articles, it will be found that practically, in each case, their importation is a necessity for the success of some important German industry in which large capital has been invested, and any check to which would prove a serious blow to German economic prosperity. 16. The imported cotton is, I believe, almost entirely of one quality only, namely, that which is produced in Sind, and which is required for the manufacture of cotton and mixed fibre carpets and rugs in which cheap cotton is a necessary element. If, as I have reason to believe, the - ·ON THE QUESTION OF PREFERENTIAL TARIFFS. 15 special German industry of manufacturing cheap rugs and carpets is dependent upon a supply of Sind cotton, it is evident that Germany must import the article, and in its oirn interest should continue to import it free of duty. .17. Raw hides are a very important article of export to Germany and although I cannot say for what particular purpose the Indian quality is required, it is evident that the loss, or a check in the supply, would lead to such an enhanced price as must necessarily tend to disorganise the leatherware industry. 18. Jute is an Indian monopoly, and should Germany place any obstacle in the way of its free importation, the jute manufacturing industry in Germany would be beaten by the competition of such countries as continued to import the raw article free, whilst for her own requirements Germany would be obliged to import jnte manufactures, which it may reasonably be supposed would chiefly be imported from India. 19. With regard to the German importation of linseed, rape, poppy, and other oil-seeds, these are required for the manufacture of oil, which is an important industry at Hamburgh and Bremen, for export purposes. If Germany were hampered in the importation of these oil-seeds, she could not compete in the export trade of oil with other countries which received them freely. 20. In this connection I may piention that Germany used to import large quantities of linseed oil fiom London; but the course of trade was artificially changed by the imposition of an import duty on the oil, and now Germany imports the seed at a trifling rate of duty (probably under 2 per cent.), and exports the oil to London, which receives it free of duty. If either England were to impose a duty on the importation of linseed oil, or Germany were to impose an enhanced duty on the importation of the raw linseed, the oil-pressers of Hamburgh and Bremen would be ruined. 21. Amongst oil-seeds imported into Germany, til (or gingelly) requires special mention. This article is, I am informed, a practically necessary constituent in the manufacture of cheap margaride of good quality, and the German margarine trade, which is a very important one, would be most seriously disturbed were the supply of the commodity restricted, or its price enhanced. 22. In connection with all the above-pamed oil.secds and most of the otlier articles of Indian origin imported into Germany, we should take note of the fact tbat a very large proportion of the imports of these Germany. The value of the value of the oil-seeds } considerable proportion of these values be added to the value of German imports of raw material from India, the industrial dependence of Germany on India is shown to be still further increased. 23. I have mentioned the more inportant articles of export fron India to Germany, but there are various others of wbich the individual values are relatively small, and with regard to wbich the conditions above noted equally apply. Of these I may perhaps more specially mention lac and certain classes of timber. The annual value of exports of lac to ז * ·16 SIEWS OF TIE GOVERNMENT OF INDIA Germany is about £100,000, and of timber about £40,000. Lac, if required, must be obtained from India, as also teakwood, which with sandalfood are the important classes of Indian timber exported to Germany. Spices can, of course, be obtained from other southern countries in Asia, but it is unlikely that Germany could well afford to entirely close her doors to the importation of Indian spices. 24. The fact is that the German tariff has been carefully thought out, and that, to encourage home industries, the importation of such raw commodities as are exported from India is, in Germany's own interests, either free or subject to relatively light duties. The imposition of duties would, according to German ideas, as expounded in practice by their present tariff classification be prejudicial to industries on which German prosperity depends. Indeed, I fecl some confidence in saying that, far from having anything to fear should Germany desire to adopt a tariff hostile to Indian interests, tre may rest fairly assured that she could not, in her own interests, tax our exports. On the contrary, if we desired to deal a severe blow to German Industrial prosperity, it seems open to us to do so by imposing export duties on certain commodities tre ship. to Germany, whilst allowing her industrial competitors to receive them free of such duties. 25. As an illustration, I may refer once more to the German export trade in vegitable oils to England. Thatever may be the superiority of German over English methods of pressing oil, the small advantage to be obtained from slich su eriority, which at present erables Germany to ship linsecd oil to Londoll, would immediately disappear if she had to pay a higher price for the seed than that paid by her English competitors, and it is to be remembered that England is not her only competitor in this liue. 20. I now return to the question of the possibility of retaliation against any measures Germany might take to check our exj ört trade, and I may say at once that we could not do very much, at present, by increasing import duties on German goods, for the total value of our imports from Germany only approximates £1,500,000, ard it is composed of so many different articles that even a prohibitive rate of duty imposed on sereml of them could not seria usly affect German industry. Some effect might, howerer, be produced as regards our imports of German trollen manufactures, of which we receive nearly £270,000 Torth per annum; hardware and cutlery, of which we receive about £135,000 worth; and sugar (of a ralue of about £230,000 per annum), with which Germany only desires the opportunity to deluge our markets. 27. Leaving aside Člina, the conditions of the trade with which I have already considered, France and the United States are, next to Germany, the most important importers of Indian products. The value of our exports to the United States averages approximately £4,950,000 per annum and our exports to France exceed £5,100,000. 28. Our chief exports to the United States are, in order of importance,' ral skins and hides to the annual United States, Falue of about £1,600,000; jute manufactures, about £1,530,000; raw jute, about £710,000 ; lac, about · £280,000; tanned skins about £260,000; and indigo, about £180,000.

·ON TTIE QUESTION OF I'REFERENTIAL TARIFFS. 17 Rate jate, indigo, rar skins, and lac are free of duty under the American tariff, whilst a fairly heavy duty of about 15 per cent. is imposed on rat hides; on taqoed skins 20 per cent.; 3.d on jate manufactures about 20 per cent. 29. Our position with regard to indigo is not assured, unless it may be proved that it can hold its own against the Germa: artificial product; and since the Americans can afford to impose a duty of 20 per cent. on tanned skins it may be assumed that as regards that article also our position is not very secure. As regards jute, our position is safe enough, but, as regards jute manufactares it can only be made eecure by putting an export duty on jute and allowing the manufactures to be shipped free. 31). I know nothing, unfortunately, of the conditions of the demand in the United States for raw hides, and I cannot therefore say whether the duty of 15 per cent. is intended to protect home production, or whether it is purely a fiscal duty which it is considered may safely be levied on home consumption. On the other hand, the free importation of mw skins from the most suitable market is doubtless a necessity for the prosperity of the very important boot and shoe industry. American boots and shoes, which are not very largely exported, would probably find it very difficult or even impossible to compete with Northampton, if they were handicapped by a higher price for raw material. 31. On the whole, therefore, I am inclined to think that should the United States introduce a tariff intentionally hostile to Indian trade though perhaps not much. f retaliation by increased duties on ald, I think, do little. The total value of our imports from the United States barely exceeds £830,000. Tho average value of importe American petroleum is approximately ££40,000, and I think that it is only by Jevying increased duty on the importation of this article, and by imposing an export duty on raw skins and raw jute, that we could in any way seriously prejudice American industries, 39. I now turn to the consideration of our export trade to France, the total value of which somewhat exceeds France. five millions sterling. The most important of our exports to Franco aro coffee, abont £260,000; ray cotton, about £500,000; nw hides, about £200,000; jute, about £6611,000; and various oil-secils, about £2,550,000, included in which linseed figures for £590,000. 31. 'The duty on coffee is nearly 100 per cent. ad calorem, and it is certain that France would be in no way affected if her supplies of coffee from India were entirely stopped. 35. I have unfortunately no information as to whether any special quality of Indian cotton is required for French industry, and in the absence of such information, it is safer to assume that French requirements in this direction could be supplied without Indian assistance. There is no duty on the import of cotton into France. 36. There is no duty on the import of hides into France, but the quantity imported is not sufficiently large to lead to the supposition that .

·.. 18 VIEWS OF TIIE GOVERNMENT OF INDIA "uppers any important export trade is dependent upon a supply at the cheapest possible rato. To a certain extent hides may be required for sole leather, and I have reason to believe that the French export trade in the finer qualities of boots and shoes, though relatively, small in quantity, is of come considerable importance in .value. The French importation of Indian skins, raw or dressed, is quite small, and presumably for the " of French boots and shoes a finer quality is required than-is”. obtainable from India. • 37. As rogards jute, it is certainly essential to an important French. icdustry that the raw matérial should be obtainable at the lowest possible price. There'is no duty cn imported jute, and it would clearly be highly prejudicial to French interests to impose a duty, 38. Marscilles is the seat of the great French oil pressing industry, which includes the production of oils, such as linseed, for ordinary purroses, fiver oils for adulterating olive oil to produce Lucca and Provence salad oil, and the oil extracted from til seed, which, as I have already mentioned, is almost a necessity for the production of good margarine an important industry in Marseilles. All these seeds are imported free of duty into France, and I do not believe that French industry could offord any such increase in their price as would result from the iin position of a duty. No french Government could withstand the outcry in Marscilles if the oil rind margarine industries were interfered with, and the threat of an export duty in India on the law material would probably compel the French Government to accord favourable terms for the importation of other Indian products with regard to which our position may not be strong. 39. "The value of wheat annually exported to France averages approximately £290,000. The duty payable is about 46 per cent. ad ralorem, and owing to the very strrng feeling in France in favour of protecting agricultural industries, it is hardly probable that any reduction could be. obtained, but it is worth noting that a supply of the special hard wheat produced only in the Central Volga provinces of Russia and in India is a. necessity for the French semolina industry. 40. The value of our. imports from France is under £800,000 and spread over a very large variety of articles, of which only four can be considered as of even relative importance. These are-apparel, for about £140,000 ; cotton manufactures approximating £60,000; wines and liquor's about £160,000; and silk manufactures, £135,000. We could no doubt supply all our Indian needs for the above articles without serious inconvenience, even if fairly heavy duties were imposed on their importation. The total value of such imports is relatively so small that. little practical barm could apparently be done to French industries by their exclusion from the Indian market; on the other hand, France is so keen to secure favourable outlets for French products, that there is little doubt that a threat of discriminating duties on their importation would' secure favourable concessions from the French Government for our export trade to France. 41..As an illustration of French keenness in securing favourable markets for their exports, I may refer to the arrangement concluded with We were the French Government in February of the current year. 1 .

·ON THE QUESTION OF PREFERENTIAL TARIFFS 19 . thmptons with a tariff rate on the importation of Indian coffee into mnl probably bave nch Government es of doties on vineg shey would per mit mum, ON MT11 LW BUMI.. 1 e, on of the maximum tantt woulu hare Lu Tee, that the French exchequer rould have gained little or nothing. The total value of the imports of French goods (vinegar and copperas) into India affected by the arrangement was only about £12,300, and the loss to Indian revenues by the reduction of daty conceded was £300 It is needless to dwell on the extraordinary advantage to Indian interests secured in this instance by an arrangement on fair trade principles. 42. The next country in importance as regards the valne of our Japan. export trade is Japan. The average value of the exports to Japan is approximately £3,520,000). Indard quticles are raw cotton, for approximately approximate value of £180,000. 'I. uificant in value Rav cotton is admitted daty free, and presumably urring to proximity of market and other causes, its free supply is of considerable importance Tanattan industry. Indigo appears to be tared at an od indigo, 18 of im- T. .--pointed to to impose heavy irse would nou ve 1 the whole, therefu ar with Japan. seems doubtf with other countries should necessarily entail any euange uum with the Japanese. 46. In order of importance as regards our experts, T: 35 : to Belgium, the IT rule Belgium. export: to where £2,850,000. The mcre important articles en ce about £350,000; wheat for about 4:10.1. saluran raluo of approximately £1,300,000, 1:13 age of tho Farious commodities in ·20 VIEWS OF THE GOVERNMENT OF INDIA are destined for the German market, but it is probable that a large proportion of both the raw cotton and the oil-sceds are merely received in Belgium in transit.. All the commodities mentioned are imported into Belgium free of duty. 16. As regards the importation of cotton, it is probable that some part of it is for use in Belgium, but I have, unfortunately, no information as to the necessity under which Belgium cotton-spinners may be to supply any portion of their requirements by receiving raw material from India. It is, however, evident that such portion of the cotton imports as are destined for Germany cannot afford to pay even a light transit duty in Belgium. 47. As regards thcat, which is imported to a value of over £370,000, the relatively large quantity imported into Belgium, whilst the imports into Germany are practically nil, would seem to indicate with fair certainty that the grain received is for home consumption. Belgium could, however, presumably place a heavy duty on Indian wheat and exclude it from her ports without suffering any material inconvenience. 48. The large importation of oil-seeds is certainly in great part destined for the German market, but I cannot say whether any important proportion is retained in Belgium. As far as transit trade for Germany is concerned, it rould be impossible for Belgium to levy any import duties without losing that trade. 19. From the above considerations it would appear fairly certain that we have little to fear, except in the case of wheat, from the adoption of a hostile tariff by Belgium. 50. As regards imports from Belgium into India the total value is about £1,680,000. 'This total is spread over a large number of articles, the principal of which are cotton manufactures, valued at about £70,000; dyeing and tanning materials approximating £175,000; glassware about £10,000; iron about £380,000; and steel for approximately £430,000. 51. It is quite certain that Belgiam trade would be much disturbed if India rere to increase her import duties on dyeing and tanning materials, glass and glasstare, iron and steel. It is therefore clear that India has little or pofbing to fear from a tariff war with Belgium, should that country be so ill-advised as to discriminate against the importation of Indian produce. 52. Our total trade with Austria-Hungary is of an approximate annual value of £3,535,000, of which the Austria-Hungary export trade from India represents about 45 per cent., and the import trade from Austria into India about 55 per cent, 53. The more important articles exported to Austria-Hungary are cotton for about £650,000; indigo approximating £110,000 ; raw hides about £240,000; and rav jute approximating £330,000. All these articles are imported into Austria duty free, and consequently it would seem that they are seriously required for Austrian industries. I am, However, unable to give any information regarding the special nature of these requirements, though it may be presumed with fair certainty that hides are required for the manufacture of the cheap saddlery and leathermare manufactured in Austria in considerable quantities for the export riade, ·OY THE QUESTION OF PREFERENTIAL TARIFFS. 21 54. The more important articles imported from Austria-Hungary are-apparel for about £150,000; cotton manufactures for an approximately similar amount; glass and glassware for about £180,000, hardware and cutlery for about £90,000; paper for approximately £80,000; NA ... 56. Italy stands next as regards the importance of our export trade, Thc angual value of which is about Italy. £2,050,000. The more important articles exported to Italy are: cotton to a value not exceeding £810,000; rat hides for about £330,000; juto for about £260,000; linsced for about $160,000; and til for about £170,000. 57. The Italian duty on imported cotton is approximately 7 per cent. ad calorem. How far Indian cotton is specially required by Italian spinners I am unable to esy, but it is probably, as in other countries, more or less necessary, on account of its relative cheapness, for mixing with the longer stapled products of America and Egypt. 68. kaw hides are imported free of duty into Italy; They are, I imagine, chiefly required for home consumption, but, as I have already mentioned, the would's supply of hides is limited, and no country could well afford to see the price of Indian hides seriously enhanced. 69. Juto pays no import duty. It is of courec required for the Italian jute manufacturing industry, but this is not a large business, In Italy hemp spinning and wearing is of first class importance, and jute takes a cry secondary place. 60. Oil-seeds pay a duty of apparently about 30 per cent. They are probably chiefly used for the adulteration of olive oil, which is a very important industry in Genoa. I must admit considerable surprise at discovering bos highly oil-feeds are taxed. The high duty must most materially handicap the Italian oil mixers in their competition with Marseilles, and I should think that it rould not be difficult by suitable representations to obtain a reduction in the rates of duty. It is, however, possible that the oil adulteration is conducted in bood at Genan. 61. Our imports from Italy are insignificant in quantity and value; the average is about £550,000. The only articles of any importance aro coral for about £40,000; cotton manufactures for about £140,000; and silk manufactures for about £100,000. 62. Leghorn is the centre of the world's coral trade, and coral Trould be imported from Italy in probably as great quantities as at present, even if paying a rery much heavier duty. Cotton and silk manufactares, and particularly the former, would be excluded, to the loss of Italian industries, if any important addition were made to our present tarif rates. 63. The conclusion as regards Italy is, that to are in no very strong position to accept a tariff war, but equally the Italians are not in a strong position to proroke it. - ·FITS O TE GOTTITI OI mi 65. TE= vales ECT EXT to Poss is car acct £159.670d E: daäss pais ZZE CI ILICO ice tast oczatzy sze . ce este EE totul mulas. Er is the singoturtarit Serretašea ta Piesinger om te vol ICE CET 259.004. The the cric is set ty so mi ti ozicom. Ta is al estetic te Bcs Et Fils the escort is calates 535.000. This is, torra grurig testa scd its edities at present lezen. riskirg to CSITIT 20 Te vet.com, Tes redace Carte posta Elvi & Tehnt trade in Irine tea col te cons With Erzis 63. Tiz sredge Fuh cizports from Easii appointes $1.762_009. berreste tiez sur ce lucrurias Esteri desa and its Crites Kirgdor Té: ruIes cz te peroleer ietei Eco Er is dan beri 1.180.0:39. Tisottais importETI SE EI in. sogat in coartriy szával €6. Clarif Fe Eata chicg ta text from stariz her enā ce coiy, it well stem centai iki i suline oa betica primeiras, FE TETE t tereta tezinfestas corazredo das Ecser return the Easeses pooli te ouls tuo rade to order to reize the TESI Emirt ertas a ta sittenby pecas arī ist CE assistance to cor tea adotty. -67. Gatitoris tu Elulitzi soi irrets fretirat auctry are equalis 17 whisparo Tra GSMESSEE Taizcie Ergo ad imped truda burels eireading 2T00:000. Ti: chip reis important rules ELOIT TU Eolied as cascais, FE GRE izpod daty free and toe tota Falcon agomatas 279.039. ES. Fro- Lolari recent corner carreteres to a rilca cacoat £120.000 (this probably made in Gemers: 320 dreng altarris mates. Esame Est be Datin fabricatin. foc ayrruti Referral 69. I corcówhint that in time objeto de como de sa se cachet corseses mică a bowdenzade mitt Holanda 70. TE IOT Conste constead of tozda mito its United Kirgton Tha Seegata alcach cor Tom Estos to the Taitad Kirsco is about 30.550.00 piisa tts alts of our incerts enreeds 3s milliers sterling, represents escris 16 pe ezt. c Ar tool incestrada īL TE: large este tada neirdes user categories first class irrotace. Among the chief matte came to a valce of soci 5:11.090; cottura de 10.000; icdigu. score 2350.001); rie: atest 1,290.000: staat stacc £1,517,100; ne dides. atons Sborhood SS0.000; drassed mes check $65.000 : Ces sin 1.520009 : jute fe coats of time pillides saling; jaia mare facientes about $700.000 : La aboci 23:0.000: bu fur eftir water 41:591,001; cz ciezesas, fie ctet 380.000; tea foz 50- Portals 15.007:400;te, foretoch 10.00; c mcl.fo:3:21 113.040. To its store sto peziars beaded min icbarze, recoagă this Eibos teca Sre Fer el amount to OzIF ·OX TIIE QUESTIO OF PREFERENTIAL TARITTS. 23 - nn 1* some £30,000, there is good reason to look on this as a growing trade which, under more favourable conditions than those now existing, might develop - great importance. 72. All articles exported to scept tobacco, tea, coffee, and unrefined discrimination, the importation of right easily be encouraged by charging duty on tobacco at ad ralorem instead of specific rates, and by encouraging consumption of tea by lowering the duty. The actual duty on coffee 19 about 19 per cent. an valorem, tlé aty on cheap d from other countries 73. If the encouragement I have suggested were offered to the importation of Indian tea and tobacco, and if a tariff were introduced in the United Kingdom discriminating in favour of Indian coffee, importaut advantages would be seculed to the producers of these articles. To a minor extent, discrimination in favour of imports from India would be beneficial, in the case of various other products, the more important of which are probably wheat and oil-seeds. As regards the latter, however, it would seem doubtful if the imposition of a duty on seeds from other. countries, sufficient to materially benefit the Indian producer, would be found to be in accordance with the interests of British manufacturers, to whom it is essential to secure the raw material at the cheapest rates possible. It should be specially noted that if, in accordance with the general foreign system of tariffs, the United Kingdom were to impose a reasonable duty on synthetic indigo, as a chemical compound, whilst admitting natural indigo free, as raw matena), the difficulties of our indigo planters would disappear as by magic. And this is perhaps not tro much in mamuntetin hatronan thin wahan lainenn close that of the one lost sight of. 74. There are many articles of Britislı mauufacture, the market for which in Iudia would appear to be sufficiently secured to British manufacturers for a long time to come, without any assistance from a discriminating tariff. By far the most important of such articles are cotton manufactures, which are imported for an approximate value of £17,525,000. Flax manufactures, in which other countries compete but little, are imported for a value of about £110,000; the value of hard- Fare and cutlery imported from England slightly exceeds £$20,000 and is nearly three-fourths of the total quantity imported into India; British liquors, chiefly whiskey, gin, and some qualities of bær, are imported to value of about £790,000 ; nearly three-fourths of the total quantity of iron imported into India is supplied by the United Kingdom, the value exceeding £1,380,000; provisions, of which a large proportion is chiefly of the class consumed by British residents, aod to a great extent specialities of English manufacture, aro imported for a valac of about £170,000. Of the total importation of collen manufactures approxi. mating in valuo £1,170,010, uptrards of £760,000 are rece fro the AL ILA ·24 VIEWS OF THE GOVERNDIENT OF INDIA United Kingdom. The total value of the imports of the articles I have 'named, and in the supply of which to Indian markets the British manufacturer under present conditions apparently need not fear foreign competition, is about 22 millions sterling, and there are many others, such as apparcl, glass and glassware, paints and colours, carriages and carts, leather manufactures, soap and umbrellas, in which the tastes of purchasers in India secure a large market for British manufactures independently of any temptation which might be offered by small differences in prices resulting from a discriminating tariff. 75. I think that it may be fairly assumed that out of the 33 millions worth of British productions imported into India, not more than 10 millions worth would be likely, under present trade conditions, to be inſluenced to an important extent by discriminating modifications in our present tariff. As regards, then, our trade with the United Kingdom it would appear that whilst India would profit by discrimination in favour of licr cxports of coffee, tobacco, wheat, unrefined sugar, oil-seeds, indigo and some few minor articles of an aggregate value exceeding £4,500,000, the United Kingdom would profit by similar favourable discrimination on exports of British manufactures of a value fully one hundred per cont. greater. 76. Conscquently, whilst the adoption of mutually preferential tariffs in both the United Kingdom and India would probably, as regards the trade between the two countries, be advantageous to both, the interests of the United Kingdom in the adoption of such a preferential system are very mucli grcater than those of India. 77. Finally, we may examine the nature of our trade with British Colonies and Possessions. These have British Colonies and Possessions, been grouped together in the accompany. ing statements under the heads Europe, Asia, Africa, America, and Australasia, the details of our trade with the Straits Settlements and with Hong Kong, being specially noted. 78. As regards exports, the total somewhat exceeds the very important figure of £16,600,000. Among commodities exported to Australasia to a total value of £1,100,000, jute manufactures figure for about £700,000 but the only other article of importance is tea, the trade in which is growing, but so far has only reached an average slightly exceeding £180,000 per anntım. Australasia is certain to buy our jute manufactures and tea, in probably increasing quantities, but the consumption of tea might possibly be usefully encouraged by lowering the duty. 79. Our total exports to the American Colonies barely exceed a value of £180,000. They include only three articles of relative importance, namely, rice for about £120,000; jute manufactures for about £70,000; and tea for about £60,000. It may be hoped that the trade in jute manufactures and tea will increase, but any important expansion of the general trade would scem unlikely. 80. To Africa, which includes the Mauritius, we export Indian products for upwards of £1,700,000 per annum, and of this figure, the export of rice accounts for about £810,000. There is no trade of first class importance in any other article, but among the more important may be mentioned jute manufactures for about £170,000, and cotton ·OX THE QUESTION OF PREFEREYTIAL TARIFFS. 26 manufactures and wheat flour, each for approximately £90,000. There is probably some opening fé 1.1. as the colonies in that contine their development they will modities now imported from India. 81. The total value of Indian merchandise exported to colonies in Asia is about 184 millions sterling, or about five-sixths of our total export trade with British Colonies and Possessions. The esports to the Straits Settlements and Hong Kong together amount to approximately 10 millions of the total figure above named. As has already been pointed out, our trade with Hong Kong is merely a portion of our trade with China, whilst a considerable share of our exports to the Strait Settlements are also destined for Chinese markets, and I have already dealt with the question of our trade with China. 82. Although I bave no detailed figures on the subject, it is probable that the bulk of our exports to Asiatic Colonies and Possessions, not destined for China, is for consumption in Ceylon and the Straits Settlements, the markets in wbich countries are, I should say, fairly assured to the Indian producer. 83. I may mention that the principal articles of export are opium for about £3,935,000; rice for £3,420,000; jute manufactures for about £650,000; raw cotton for £280,000; cotton manufactures for about £550,000; and cotton twist and yarn for about £2,450,000. Nearly the whole of the opium seems to go to Hong Kong and the Straits Settlements, and the same may be said of the cxports of raw cotton, cotton twist and yarn, and jute manufactures, but there would appear to be a very large consumption of rice in Ceylon and the Straits Settlements. 84. The exportation to European possessions is so extremely iosigni. ficant that it aced not be considered, and the same may be said of the importation. 85. From all British Colonies and Possessions, tlie total value of our imports approaches £4,785,000. From Australasia, we receive horses and some copper. From Africa we received an average during the five years under consideration, of approximately £1,260,000 worth of sugar, produco of the Mauritius, but the total value of the imports from Africa was only £1,480,000. 86. Our imports from American Colonies are nearly as insignificant as those from Europe. 87. From Asiatic Colonies and Possessions to receive merchandise to an approximato value of £2,980,000. The most important articles of import are: cotton manufactures for about £60,000, of which Ceylon supplies about £25,000, and Hong Kong and the Straits Settlements together something more than £30,000. Drugs are received for ncarly £100,000; matches for about £70,000; tın from the Straits Settlements for about £130,000; cocoanut oil from Ceylon for an approximately similar figure; provisions and raty silk, each for about £270,000, includ. ing about £100,000 worth of silk from the Straits Settlements; spices are imported for about £450,000, of which about £370,000 worth aro from the Straits Settlements: the value of the imported sugar barely ciceeds £3 10,000, of which nearly £260,000 crorth is from Hong Kong : tca, presumably from Ceyloo, is imported for a value of about £50,000.

·24 VIETS OF THE GOVERNMENT OF INDIA United Kingdom. The total value of the imports of the articles I have named, and in the supply of which to Indian markets the British manufacturer under present conditions apparently need not fear foreign competition, is about 22 millions sterling, and there are many others, such as apparel, glass and glassware, paints and colours, carriages and carts, leather manufactures, soap and umbrellas, in which the tastes of purchasers in India secure a large market for British manufactures independently of any temptation which might be offered by small differences in prices resulting from a discriminating tariff. 75. I think that it may be fairly assumed that out of the 33 millions worth of British productions imported into India, not more than 10 millions worth would be likely, under present trade conditions, to be influenced to an important extent by discriminating modifications in our present tariff. As regards, theu, our trade with the United Kingdom it would appear that whilst India would profit by discrimination in favour of her exports of coffee, tobacco, wheat, unrefined sugar, oil-seeds, indigo and some few minor articles of an aggregate value exceeding £4,500,000, the United Kingdom would profit by similar favourable discrimination on exports of British manufactures of a value fully one hundred per cent. greater. 76. Consequently, whilst the adoption of mutually preferential tariffs in both the United Kingdom and India would probably, as regards the trade between the two countries, be advantageous to both, the interests of the United Kingdom in the adoption of such a preferential system are very much greater than those of India. 77. Finally, we may examine the nature of our trade with British Colonies and Possessions. These have British Colonies and Possessions. been grouped together in the accompanying statements under the heads Europe, Asia, Africa, America, and Australasia, the details of our trade with the Straits Settlements and with Hong Kong, being specially noted. 78. As regards esports, the total somewhat exceeds the very important figure of £16,600,000. Among commodities exported to Australasia to .a total value of £1,100,000, jute manufactures figure for about £700,000 but the only other article of importance is tea, the trade in which is growing, but so far has only reached an average slightly exceeding £180,000 per annum. Australasia is certain to buy our jute manufactures and tea, in probably increasing quantities, but the consumption of .tea might possibly be usefully encouraged by lowering the duty, 79. Our total esports to the American Colonies barely exceed a value of £280,000. They include only three articles of relative importance, namely, rice for about £120,000, jute manufactures for about £70,000 ; and tea for about £60,000, It may be hoped that the trade in jute manufactures and tea will increase, but any important espansion of the general trade would seem unlikely. 80. To Africa, which includes the Mauritius, we export Indian products for upwards of £1,750,000 per annum, and of this figure, the export of rice accounts for about £810,000. There is no trade of first class importance in any other article, but among the more important may be mentioned jute manufactures for about 2170,000), and cotton ·OX TUE QUESTIOX OF PREFERENTLİL TARIFFS manufactures and wheat flour, uch for approximately £90,000. The is probably some opening for the development of our trade with frien as the colonies in that continent develop, but it is also possible that mit their development they will supply themselves with certain of the content modities now imported from India. 81. The total value of Indian merchandise esported to alzis ir Asia is about 13 millions sterling, or about fire-zisths of the export trade with British Colonies and Possessions. The ernsts in the Straits Settlements and Hong Kong together amount to approximates 10 millions of the total figure abore named. As has already hain pointed out, our trade with Hong Kong is merely a portioa with China, whilst a considerable share of our exports to the Swait Settlements are also destined for Chinese markets, and I haremmas dealt with the question of our trade with China. 82. Although I have no detailed figures on the subject, it is poingia that the bulk of our exports to Asiatic Colonies and Pressions, AC destioed for China, is for copsamption in Ceyloa and 12. Swits St ments, the markets in which countries are, I should sar, jails 2350 the Indian producer. 83. I may mention that the principal articles of experts about £3,935,000; rice for £3,420,000; jote manukas £650,000; raty cotton for £280,000; cottoa mmutate in £550,000; and cotton twist and yarn for about 2,450,00. V the whole of the opiun seems to go to Hong Kongo. Sa Settlements, and the same may be said of the expanskcotton twist and yarn, and jute manufactures, but there be a very large consumption of rice in Cesloa and finds 81. The exportation to Eoropean possessions is ficant that it need not be considered, and the most importation. 85. From all British Colonies and Possessims, imports approaches £4,785,000. From Australasia, i some copper. From Africa we received an avere under consideration, of approximately 21,200.000 produce of the Mauritias, but the total value of the was only £1,480,000. 86. Our imports from America Colomino as those from Europe. 87. From Asiatic Colonies and Possessim an approximate value of £2,830,000. Tuem: import are: cotton manufactures for a supplies about £23,000, and Hos Kongo together something more than 100,0?1. £100,000; matches for about 570,00; for about £130,000; cocoannt oil eimilar figure; provisions and mater, ing about £100,000 orth Elk from are imported for about 1459,002, from the Straits Settlements: the exceeds £310,000, of which wir II m, presumably from Cesis, is ·26 VIEWS OF THE GOVERNMENT OF INDIA 3 88. Some of the articles above noted, such as tin, spices, and probably certain drugs, are specialities of the production of the countries from which they are received, and to a certain estent this observation doubt. less applies to other articles named, such as silk and silk manufactures. On the whole, it would appear that British Asiatic Colonies and Possessions in Asia, and these alone, might benefit inaterially from a differential tariff arranged to favour the importation of their wares into India. 89. Of all the articles of export from India, one of the most difficult to deal with, for want of information, and at the same time one of the most important, is rice. The total value of the exports of rice from Indian ports approximates 10 millions stērling, but our statistical information only permits of our accounting for the destination of 6 millions sterling worth, and in ignorance of the particular markets which consume the large balance approximating four millions sterling in value, it becomes necessary to consider the rice trade by itself and not as classified under the different countries importing the article. The absence of information as to the destination of Indian rice is due to the fact that very large quantities are shipped to Suez, or Mediterranean ports 'for orders, and it is impossible to name the ports of final destination. Our information shows that the United Kingdom imports Indian rice for nearly. £1,040,000; Germany for about £160,000; African Colonies Limelige shipfy the Mauritius and Natal) for about £810,000; the for nearly £1,540,000; and other Asiatic Possessions about £1,870,000, of which Ceylon takes approximately £1,760,000. In addition to the above, relatively small quantities of rice are shipped to Japan and the American Colonies. Of the large quantity of rice, the precise destination of which is unknown, there is a considerable shipment to South America and there is I knovy a considerable demand for the Levant, but it is probable that the greater part of the untraceable quantity is delivered for consumption in Europe and more especially in Germany, for manufacturing purposes. Rice is, I understand, used in the preparation of certain German beers and to a very large extent in the manufacture of .starch. As regards its use for beer, the demand is due solely to its cheapness; for starch, rice is a most important raw material but should the price be seriously increased, its place ivould probably be taken by other cereals and potatoes. For the purposes of consumption in South-Eastern Europe, Egypt, and Arabia, a cheap supply of Indian rice is probably almost an economie necessity. Possibly the same may be the case as regards South America, but I doubt there being a consumption of rice for .edible purposes on the European continent (exclusive of the Balkan Peninsula) of such a nature that its place conld not be readily taken by Italian or Carolina rice, if the Indian quality did not offer a very considerable advantage in price. 90. I regret being unable to say anything more precise on the rice trade, and any conclusions, which may be drawn from the very imperfect information at our disposal, can only bé conjectural. 'My impression is, however, that the demand for a cheap rice of a quality which India alone can supply is assured in many countries and for many purposes, but that tariff discrimination against its importation into European countries would seriously check, if it did not stop, tlie demand for its consumption as food in European centres. any ·OX, TILE QUESTION OF TREFERENTIAL TARIFFS. 01. An important question affecting Indian trade in a very specia manner is that of freights. Under present conditions India is an exporte almost exclusively of bulky raw material. To deliver these nair products to the various ports of the world where they are required and There they must competd more or less with the produce of other conntries, it is of the greatest imortanre to obtain cheap freights. Steamship orners in Europe are indifferent as to the proportions of freight obtained for the ontward or for the homeward voyages, provided that the total earnings for the double voyage, out and home, yield a profit. As outward freight to India consists almost exclusively of manufactured articles of relatively small bulk, ships proceeding to India seldom find full freights, whilst there is generally no difficulty in obtaining heavy cargoes of raw produce for the homeward royage. In these circumstances, owners uaturally charge freight for the carriage of produce from India at sufficient rates to cover losses on the outward voyage and leave a profit on the whole trip This situation seriously handicap3 export trade from India even as matters now stand, but if India is to progress, it is very important that a large proportion of the produce now shipped abroad as raw material, should be worked up in Indian factories, and cheap rates are essential for the profitable export of worked up commodities which must compete with those produced in European factories. Indian raw produce enjoys, as I have shown, in many cases a practically assured demand, due to the fact that ether it ca inot be obtained at all, or cannot be obtained in sufficient quantities to ineet requirements of consumption from other countries. 92. To illustrate the disadvantages of the present situation, I was point out that if an oil presser in India desires to ship his cils to Europe, the abundance of raw produco generally awaitiog shipmunity and which can be easily and with great advantage shipped in bulk, naturally leads ship-owners to charge something like fancy rates ou sach goods as oil in casks. I think it well to draw attention to this question because I believe that existing conditions as regards Ereights are prejudicial to nascent Indian industries, and must be considered as a factor tending to delay their development. Of course them. Increment industries have saficiently developed to materially reduce ire in produce exported in the raw state, the situation will be enterer since as soon as there ceases to be a plethora of rar produce criticare shipment, the special rates not charged on manfactoria speedily be reduced, and the Indian industries will no longer capped as at present. In actual circumstances, borte regards our export trade to Europe and most other part need only consider for the present borr to some other 155 our raw produce. 93. I will now endeavour to sommarise ne gresia cannon tion as I have been able to make of the storm with those countries with which on trade zacisnr: ant. We may first take the contender respective total values and as brier a rose the trade. .

·28 VIEWS OF THE GOVERNMENT OF INDIA EXPORTS FROU INDIA, 94. United Kingdom. The value of exports to the United Kingdom approximates £20,850,000. It has been noted that India would profit by tariff discrimination in favour of coffee, wheat, oil-seeds, indigo (as compared with the chemical product) and some minor articles of exportation to & probable aggregate value of some 4 millions sterling, whilst independent of discrimination, a reduction in the tea duty and the levying of duties on tobacco at ad valorem instead of at specific rates would be of great value to the trade in those articles. 95. Uniteit States.- Value of exports about £4,950,000. It is unlikely that it would be in the interests of the United States to institute a tariff of high duties on imports from India, but the situation is not fully assured. 16. Germany.--The value of exports approximates £6,000,000. It is unlikely that Germany could profitably to her own interests impose even moderate duties on commodities received from India. 97. France. The value of exports is about £5,130,000. The only important articles of export to France, on which it would appear that without more or less serious prejudice to her own interests she might impose high duties are coffee and cotton. As regards the former, we lave recently made special and relatively satisfactory arrangements, and as rogards the latter, it is by no means certain that French cotton industries could afford to dispense with a cheap supply. 98. Belgium - Value of exports approximately £2,850,000. It is probable that a great part of the Indian produce imported into Belgium is in transit for Germany, and no duties could therefore be levied thereon without loss of the transit trade. It is quite uncertain what proportiou or what classes of imports are for Belgian consumption, but it would appear probable that at least wheat is imported for local requirements, and tbat the trade in this article (of a value of about £370,000 per annum) would be speedily stopped by a high duty. Other articles imported may quite probably be of greater or less importance to Belgian industries, 99. Italy.- Value of exports £2,050,000. It would seem quite possible that the export trade to Italy in such important articles as cotton, raw hides, and linseed, might be seriously checked by a tarift discrimination against Indian produce. 100. Austria-Hungary.“ Value of exports £1,610,000. The situation as regards the necessity to Austrian iodustries of the supply of Indian raw material is in many respects doubtful, and consequently I cannot form an opinion as to how far they might without serious prejudice to Austrian industries be discriminated against in the matter of duty. 101. Russia.-Exports to Russia are so small that they need not be considered. 102. China. The exports to China direct, that is to the treaty ports, approximate in value £3,860,000 but in considering Chinese trade, we must add to this figure the value of exports to Hong Kong, amounting to ·OX THE QUESTION OF PREFEREXITAL TRIFFS. 20 about £5,730,000, together with an unknown though certainly very considerable proportion of the exports to the Straits Settlements which exceed 4 millions sterling in value. The total valne of the export tmde Trith China cannot be taken at less than 11 millions sterling, and there is certainly no reason to fear, at least for a long time to come, tbat this trade might be affected by a hostile tariff. 109. Japan.. The value of exports is abont £8,520,000, nearly the whole of which represents the value of raw cottoo. The importation of cotton could doubtless be checked by the imposition of daties, but Indian cotton is probably required as a cheap raw material for the fabrication of Japanese cheap cotton stuffs. British Colonies and Possessions. 104. European.-Value quite insignificant; trade need not be considered. 105. African.....Value about £1,730,000, including rice for the Mauritius, for £115,000. Discrimination in favour of Indian commodities might perhaps be of some slight value, but it is improbable that it would materially increase our trade. 106. American.-Present value of esport trade insignificant and not likely to be increased by preferential tariffs. The consumption of tea, borrever, could doubtless be favoured by a lowering of the duty on that article. 107. Australasian...Value of exports about £1,100,000. The same observations apply as with regard to the American Colonies. 1118. Asiatic.Valae about 13 millions sterling ; but as already pointed out, probably upwards of half of this is in transit for Chida. Is regards the remainder, our trade with Ceylon and the Straits Settlements is, I think, on a fairly assured basis and would not be likely to gain much by a favourable preferential tariff. IMPORTS INTO INDIA. 109. United Kingdom.-Value of imports approximates 233,24",000. It does not seem probable that the proportion of this import trade in tvould be advantaged by a tariff discriminating against the generationr of foreign countries, could exceed £10,000,000 but this is a regimurale ant figure. 110. United States... Value of imports barely excerio $299,00D. preferential tarifi discriminating against Ameriza pessima Trona prejudice American interests, but the yalue of the past minuti America is only about £440,000 and does not at present osa. Ens increase. The United States have not much to far from your client ing against importation of their productiore. ill. Germany...Value of imports alyst 319001,V,', indastries would certainly be injured by the time and duties, but with the exception of furnar (the times, and might again, take large pregatirtis 1: ce se po cles is relatively so small that it is tety domowever njure German industry as a while.

·30 VIEWS OF THE GOVERNMENT OF INDIA 11%. France. --The import trade does not amount to £800,000. No preferential fariff discriminating against French Froduction could. materially hurt French trade. 113. Belgium. The value of the imports from Belgium approximates £1,680,000. Discrimination against the importation of Belgian manufactures would certainly Þe severely felt in Belgium.': 114. Ituly.The value of the import trade is about £530;000. Discrimination against importations from Italy would affect Italian cotton and silk industries, but on the whole it is probable that little material effect would be produced on Italian trade by a hostile tariff. 115. Austria-Hungary.--The value of imports from Austria is about £1,430,000. It would seem probable that Austria would be ready to make considerable concessions in favour of imports from India, to protect lier trade in manufactured goods exported to India. It must be remembered, however, that Austria at present admits nearly all important Indian products free of duty. In this connection, it must also be borne in mind that whilst the production of German industries is so large that German prosperity, as a whole, would not be materially affected by restrictions on the export trade, in a few articles, with a siugle country, the loss of similar amount of business might seriously prejudice Austrian or Belgian industries, which are relatively much smaller. 110. Rressia. The value of the import trade from Russia is approximately £1,760,000, of which nearly the total is represented by the importation of petroleum. A tariff. discriminating against Russian petroleum would certainly force Russia to grant important concessions in favour of the importations of Indian produce, and such concessions should be of material value to our tea trade. 117. China.---'The value of direct imports approximates £450,000. Our import trade from China is insignificant and for other reasons also need hardly be covsidered. 118. Japan.-The value of imports from Japan amounts to about £460,000. No important results would follow the introduction of a tariff discriminating against imports from Japan, British Colonies and Possessions. 119. European --The trade is far too insignificant to be worth consideration. 120. African.- Value of imports, approximates £1,480,000. Ang discrimination in favour of the importation of sugar from Mauritius would be of great value to that Colony, but there is no trade in any other articles which deserves attention. 121. American.-The value of the import trade is quite insignificant and need not be considered. 122. Australasian.--The value of imports is only about £365,000. It does not appear probable that it could be in. any ay materially favoured by a preferential tariff. 123. Asiatic-Straits Settlements. The import trade amounts to nearly £1,460,000. It is spread over a very large number of articles, and though some of them being specialities of production, such as tin, spices, and drugs, would be unlikely to be affected by a preferential ·OX TIIE QUESTION OF PREFERENTIAL TARIFFS. si tariff, discrimination ia favour of importations from the Straits rould on the whole probably prove of considerable value to that Colony. Ilong-Kong. The value of the import trade from Hong Kong approximates £800,000. It would certainly benefit by a favouring discriminatiog tariff. Ceylon.-The value of the import trade is about £490,000. A considerable proportion of this trade is apparently a transit trade from Europe, presumably for Southern India, whilst many of the articles of local produce are specialities. Ceylon would doubtless benefit to a certain extent by a preferential tariff in her favour, but I have not the information to arrivo at any precise conclusions as to the possible importance of Euch preference. 124. At the risk of being tedious, I fear I must summarise again, bringing the export and import trades with each country together. 125. United Kingdom.-British trade bas much to gain by the adoption of a preferential tariff in its favour. India has little to gain, unless in addition to favourable diserimination on a limited number of articles, the duty on tea should be materially reduced, and the duties on tobacco should be levied at ad valorem rates. . 126. United Slates. The institution of a preferential tariff would, if the United States determived to letaliate, probably prove unfavourable to Indian interests rather than otherwise, but it does not appear likely that very much harm could be done. 127. Germany --German industries would probably suffer somerhat, if German manufactures were discriminated against in an lodian tariff, and Germany is far from being in a position to retaliate with success. 129. l'rance French trade would be little hurt by unfavourable discrimination against French goods. France would not be in a favourable position to retaliate. 129. Belgium.---Belgian trade would suffer considerably under a hostile tariff, and Belginm could not retaliate with effect 130. Italy.--Italian trade would not be greatly hurt by a hostile tariff, and it is anlkely that Italy could afford strong measures of retaliation. 131. dustria-llungary.- Austrian trade would be seriously prejudiced by tarife discrimination against Austrian manufactures, and it is unlikely that Austria could retaliate with effect. 18. Russia. The present position of our trade with Russia is 57 adversely one-sided and unfavourable to Indian interests that it would appear reasonable, iu any case, to discriminate against ber products, pless she agreed to make considerable concessions in favour of the ladiz sport trade. 133, China - Tmdo with China is on a very sure basie, 292 tomt t be affected by the adoption of a preferential tariff. 131. Japan.-t is aucertain how far Japau could alion 19 km npering duties on commodities imported frora Irdia, wliet ugyen results would be likely to follow the introduction de tarit tirgus ing against imports of Japanese manufacture. 135. British Colonies and Possersiuni. The autáue, a * Straits Settlements, and Ceyloa are proszulp the valu ·1 32 VIETTS OF THE GOVERNMENT OF INDIA : would gain appreciably by the introduction of a preferential tariff in their farour, and the introduction of such a preferential tariff could not prejudice our export trade to British Colonies and Possessions.. 1 CONCLUSIONS. 136. Before attempting to draw any conclusions from the above examination of such facts as can be ascertained, I must once more insist. that the information at our disposal for a correct appreciation of all the numerous points involved in the question under consideration is insufficient. It requires to be supplemented by enquiries as to the uses to which Indian produce is put when received in foreign markets; and without such full information in this respect as could only be obtained by local inquiries in the different countries concerned, we cannot say with certainty how far, in case of a tariff war, each individual country could afford to assume an aggressive attitude, hampering the supply of raw materials required for its industries. At the same time, I feel sufficiently confident that with the great majority of the countries with which we trade, and as regards the very great bulk of our exports of raw material, 10 are not only in a safe position, buf we could even afford, in certain instances, ourselves to assume the aggressive by going so far as to impose duties in the exportation of produce they require for their industries. This is vot the case with every country, or by any means with regard to all classes of produce exported, and with possible exceptions in ile case of Russia, Austria, Germany, and Belgium, it seems to me to be more in Indian interests to leave matters as they are, than to embark on a nuir fiscal policy, unless, indeed, by its adoption very great advantages could be obtained by preferential discrimination in favour of our exports to the United Kingdom and British Colonies and Possessions. 137. I have indicated as far as possible how far it would appear that such advantages might be obtained, but in existing circumstances, and in view of the fact that cur exports consist almost entirely of raw material ind produce, it does not appear probable that materially importa ant advantages could be offered to us under a system of preferential tariffs in our favour, adopted in other parts of the Empire. The gain to the United Kingdom would probably be considerable, as also to the llauritius, lut I doubt if our trade relations with other parts of the Empire would be materially advanced in their favour by any far-reaching change of policy. 138. In my opinion it might be difficult to show that a preferential trade would prove directly prejudicial to Indian interests, but, should we be urged to join in a general preferential arrangement, I think that it would be our duty to point out very strongly that, if our export trade with foreign countries were in any way seriously prejudiced, tre should ruu a very grave risk of disturbing the balance of trade, now strongly ini our favour, and we might find ourselves once more plunged into the deep sea of trouble arising from a depreciation of the exchange value of our Tupee currency.

·OX THE QUESTION OF PREFERENTIAL TARIFFS. 33 an aproninti 1 4 189. The situation appears to me to be this, that India could probably give withont serious danger some small preference on her present lor tariff rates to imports from other parts of the Empire ; but she has little to gain by so doing, and would incur a risk of difficulties with her foreign customers in proportion to the extent of preference given in : system of inter-Imperial preference, and to the rates of the tariff on which it was given. If we were to raise an rage tariff rates to, say, len per cent. (which I ten! ommend), so as to give Imperial relations, such tu our foreign customers for vecessarily consider the advisability of ret: we might be landed in a series of tariff wars, the results of wbich we cannot foresee with certainty. On the other hand, such very small preferential advantage as might probably be given with fair prospects of safety, on generally low average tariff rates would hardly be likely to afford such advantages to British manufacturers as wonld prove of material benefit to their interests. 140. Tro important points must, however, be borne in mind in considering the whole question--first, that most of the foreign countries which would be likely to resent the introduction of an inter-Imperial preferential tariff, are interested both in obtaining our raw produce and in supplying us with their manufactures, and that this situation gives us a double weapon to use against them if necessary ;- second, that the percentage of profit on manufactured goods is, as a rule, considerable, and consequently trade in many manufactured articles might not suffer appreciably from a small percentage of increase in cost. A relatively much smaller increase in the percentage of cost of raw material and produce would seriously check importation, unless the supply of such commodities were necessary for important industries and were so limited as to - partake of the nature of a monopoly. I have already shown that a large proportion of Indian exports, consisting almost entirely of rar materials and produce, is of that nature.

·111 UVIXILARI INDIA STATE Sintement shoping the average of tho vnlnc (in ponnde sterling) of Esports of Indian Colonies and Possessions, Austria-Hungary, Belgium, France, Germany, countries, during the five years www oh $ ,8 8 10 hºw. -4 11NITISI POSSESSIONS. . COLOXIX AXD POSSKBBIOX! is Priscirai article*. 01.1tr1 Kington, Total of Exports Total olto British Exports to Posses- Colonies Elons Europc. and (including Posses. Upited 51005. Bingdom). Aostmi. Ame. asia. rica. Africa. Ilong Straits Eetilc. meta, Other:1. £ £ + 11,600 1.000 3,000 1,000 . Afrare!" 1:11?r* & 6ti for beslist .. ... .. Chro:Ima!r-Salistire hoic L Him 83.00 17 3,000 10,mo 17,000 13,00 74.00 10.16 67,10, com Grim 67,100 213 rro 3h.ro 113 mm 3.0 1970 :11,00) :), (ing 18.00 1176, 127(0) 17.00) 450 3.00:03,00 28.000 131,000 131,000 74,000 95,000 13,000 55,000 16,000 61,000 103,00 170,000 281,000 281,003 46,000 623,000 15,000 127,000 289.000 680,000 2,452,000 2,453,000 6$1,000 658,000 . .. ..4 17.00 ... 16.000 1.000 13.IX 2.500 15.000 3.000 1.640 8.000 2.0N) 02.(0) 2,020 *** . • .. ... . 1,000. 113 . 1,000 . $ ... 33 min, MO 1,013, mm, 2m 10.00) . 14m 17,00) 10 30,000 97,000 3,038,000 3,077,000 73,000 79,000 38,000 €8,000 1,001 2,000 16.000 2000 ... (17,7** *****enc yarn lactarne Ilir, Medici Druntanmelle!!! Tilaan, indartered Te!"oracioned Der Ansichtkralama Cuie 10lso lotni Fres, linn and catile legs r: it a resta! 4 - 0:08 $:15 Oralner: rait- I:Ict in the laten Hic 50! 1:thic hurt ... 3.9.10) 5,0:0 5,000 11,000 6,00 32,000 211,000 81,00) 312,030 128,033 47,000 3:4,000 . ... 2,000 6.00 0.100 1,00 120,mo 18.00! 14.0); 8,000 1,000 13 3,000 . ... ... .. * 60,000 1,8 1.039.00m 1,631 (0 ... 3,000 30,000 40,000 4,00 2.mo 16,004) 8.000 55,000 1.ro i 60.000 17,67 1,836,0mm 1.865,000 613,000 1.00 0.000 6.000 1,002 3.000 103.001 13,000 0,0) 75,000 70,000 1.000 .72,000. -72,000 109,000 255,000 60,000 4,365,000 6,403,000 17,000 1,527,000 190,000 151,000. 203,000 2,000 5,000 7,000 123,000 1,000 1,003 ... 199,000 .. $1.0 1000 *** .. ... ... 7.000 . 2,000 2,000 1,000 2,000 .00 ... ... 27,00 .. ... Bloms. tatt Julde indatory Hics, arred or tanreis -line, a Ekles, decod orizonta lloras Jele, "manufacturer Lic Marines Wctal ... 109,000 7,000 285,000 1,000 565,000 169,000 20,000 1,869,000 59,000 28,000 3,073,000 1,687,000 2,289,000 10,000 320,000 42,000 187,000 103,000 56,000 TAMI 11.00 1181,00) 1,9vim ras 3.015.om 762.om 200009 sin mo 4,00 116,0mg 81.000 1,000 10.00 21000 -.. 3,000 1,000 372.000, 21,000 109,000 703,000 60,000 3.00) 4,000 10,000 2.000 26,000 0,000 8,000 6,000 1,000 ... 4,000 22,000 ... O ... .. Poe 1. .. 67.000 31,000 7,0 13,000 65,000 10,000 18,000 3,000 113,000 : 3,000 116,000 301,000 0,000 1.000 25,000 60,000 147,000 50,000 128,000 956,000 1,000 2,000 27,000 68,000 2,000 50,000 | 21,000 00,000 11,600 3,000 1,000 28,000 ... .. 1,000 1,000 72,000 120,000 14 ... .. ... ... 6,000 1,000 2,0 . 6 1,000 4,000 14,000 .. ... ... ... Oll- Pamar-TOT Castor Cocoanat 0:ber 0713 Trorieloos Secdem Ciastor Cotton Earthnots Linseco Voma or 2013 ropps. Til Other forts sik, SN manufactores Spices Sugar, porcanca Тcз Wood Tool, ratt inangfactarcs other articles not specified ... 171.017 179,010 11.000 1,303,000 1,000 1.65,000 1,600 10.020 150.000 36.000 70,000 64,000 5,069,0m 109,000 715,000 115,000 337,000 ... 171,003 6,000 185,000 3,000 14,000 10,000 1,412,000 1,000 145,000 10,000 11,000 61,000 80,000 150,000 17,000 53,000 112,000 191,000 11,000 95,000 287,000 5,315,000 125,000 534,000 714,000 9,000 124,000 308,000 615,000 10,000 30,000 3,000 81,000 10,000 8,000 55,000 ..4 1,000 1,000 22,000 7,000 18,000 31,000 2,000 4,000 3,000 2,000 31,000 100,000 1 8,000 3,000 4,000 13,000 1,003 - 3,000 182,000 61,000 57,000 5,000 1,000 1,000 69,000 22,000 1,000 ... 6,000 77,000 6,000 4,000 . 0,00016,625,000 37,473,000 GAIXD TOTAL • 20,843,000 5,728,000 5,250,000 3,631,000 1,725,000 1,037,000 285,000 ·0 TH 017INSTRIT:41. TARON BENT A merchandise exclusive i Garmont thing in Unit Holland, Itals, Fossia, the Tip SIDIS Jamahin a wir Forint ending with the year 19-05 1 Igary. Atria Eers. From G LIK art. TIA . we 84. 2 lar 9000 1,000 Iseo 17.000 11 000 000 100 20 000 110 615.000 81.CO (11 10+ 12K WY my . my 30 mm CU 103 w M M NR ut See M. it 1,000 1.000 ning 2,65 W . Na 160 47 -5 112.000 10,10 . TA LA CO BY 2.00 18.30 EXC 2.MK 00 IC 14:00 140 010 1000 S" CU 3+ IA) . w wo 1, $........., - w 3,00 LEY w EN M 65.000 wa: Tox igny 1 * AS 1,000 AL 2.1 OK 4 7,000 sino am I? BOD SC8.000 56,0 900 RUD SUD sono 17 mo 2 V $ 149 61,000 600 1200 1.000 190, no 9. 22,020 ELO 1.000 2010 DKK 300 661,mo 3.200,00 son $1,000 8000 1400 4.16 3000 97.000 212 VO 24,00 $9,000 NO 9.00 2000 1.000 4.560 1, Dr 2000 $300 4,000 to 500 300 cix log OR 5,000 29000 7.70 19000 1,000 200 13.00 13,00 SAT W 2-3 7. 4000 4000 41,000 ino 1.00 9,000 6,00 M 9000 16.00 &00 160A 600 75 000 17,50 sinn & 24.00 gond 31 2010 Tito 4,000 100 7.000 1100 2.000 3100 cm 2,00 19000 1 0 2009 15.00 22.00 auc 4000 Lore 71.000 25,000.00 1.00% A' WA JW'00' Owiss moto ·wwwewent showing the average of the value (in pounds sterling) of Imports inte Belgium, France, Germany, Holland, Italy, Russia, United States, Japan, S 1 2 3 4 ET 6 8 9 10 BRITISH POSSESSIONS. Principal articles. COLONIES AND POSSESSIONS IN Asia. United Kingdom. TO In Hongo 'Kong. Africa. Straits Settlemonts. Austral- Ame. asia. rica. Total of Imports from Europe. Colonies and Posses. sions, ES5533 Others. BI Po sion cla Un 1 dor £ 9,000 590,000 162,000 € 2,000 23,000 9,000 £ 1,000 6,000 1,000 207,000 £ 210,000 38,000 2,000 ... 151,000 107,000 1,000 210, 623 164, ... 1,000 1,000 . ... .. . ... 37,000 33,000 165,000 1,000 1,000 152, 103,0 ... 1,000 1,000 ... 2,000 37,01 93,0 167,00 1. ..4 ... . ... ... ... ... ... .. .. ... u. 97,000 ... .. . ... PO .. ... . . ... ... 0 Animals, liring Arms, animaditions, and milie tary stores. Books and printed papers. Building and Enginccring matcrials. Candles Caoutchouc, manufactures of Carriages and Carts (excluding milway carriages) and parts thereof. Chemicals Clocks and matches Coal. Coral Cottoa, raw trist and yarn manufactures Drugs and Medicines Dyeing and Tanning materials Earthenware and Porcelain FlaI manufactares Glass and glassware Hardware and cutlery Instruments, apparatus, and appliances Ivory Jewellery, and plate of gold and silver. Leather manufactures Liquors Machinery and mill work Matches Metals---Copper German Silver Iron Lead Steel Tin Zino or spelter Oils--Mincral Other kinds Paints and colours Paper and pasteboard Pitch, Tar and dammer Provisions Bailway plant and rolling stock. Silk, ras Silk, manufactures of Soap Spices Stationery (excluding paper) Sugar, refined Tea Tea-chests Tobacco, manufactured Toys and requisites for games Jmbrellas, including parasols and sunshades. Yool, manufactures of other articles not specified ... . .. 800 .. I. .. 1.. .. 1,000 284,000 1,000 21,000 1,000 2,000 200,000 19,000 111,000 9,000 1,000 1,515,000 1,000 1,000 17,525,000 9,000 1,000 31,000 201,000 26,000 52,000 44,000 28,000 1,000 6,000 28,000 83,000 2,000 2,000 8,000 107,000 1,000 109,000 12,000 15,000 821,000 1,000 1,000 2,000 4,000 251,000 1,000 1,000 55,000 179,000 9,000 10,000 20,000 30,000 20,000 1,000 126,000 787,000 1,000 7,000 1,000 13,000 1,766,000 2,000 1,000 6,000 12,000 3,000 1,000 60,000 3,000 523,000 38,000 1,000 31,000 2,000 26,000 25,000 1,335,000 10,000 103,000 1,000 2,000 472.000 2,000 7,000 125,000 59,030 81,000 1,000 15,000 2,000 61,000 2,000 5,000 ! 115,000 105,000 14,000 11,000 5,000 162,000 1,000 5,000 35,000 13,000 465,000 9,000 245,000 14,000 1,000 1,295,000 · 9,000 12,000 242,000 47,000 168,000 96,000 174,000 130,000 11,000 2,000 103,000 157,000 1,000 111,000 238,000 78,000 5,000 1,201,000 1,000 7,000 11,000 -26,000 81,000 5,000 126,000 3,000 10,000 1,000 74,000 1,000 137,000 3,000 5,000 1,000 ... 764,000 1,000 +55,000 115,000 208,000 128,000 80,000 85,000 7,000 1,000 ... 3,000 287,00 1,000 22,00 19,000 309,000 9,000 9,000 2,000 113,000 10,000 1,655,000 63,000 17.653,000 299,000 36,000 64,000 11,000 91,000 107,000 28,000 137,000 7,000 828,000 2,000 263,000 20,000 $4,000 61,000 2:10,000 1,000 127,000 3,000 26,000 613,000 8,000 1,774,000 60,000 78,000 13,000 626,000 25,000 13,000 1,349,000 2,000 105,000 2,000 474,000 125,000 192,000 • 69,000 18,000 102,000 133,000 101,000 19.000 214,000 6,000 169,000 13,000 49,000 277,000 782,000 12,000 1,307,000 47,000 250,000 209,000 20-4,000 113,000 317,000 103,000 577,000 677,000 1,000 169,000 1,000,000 1,719,000 43,000 16,000 5,000 89.000 11,000 1:49,000 1,000 75,000 11,000 140,000 ... ... W . RO ... ... i.. ... ... . .. du Salt .4. 4 ... 00 . 7,000 5,000 35,000 107,000 100,000 ... . .. 2,000 1,000 705,000 031,000 1,197,000 GBAND TOTAL 133,240,000 860,000 1,455,000 612,000 1,483,000 362,000 8,000 5,000 4,725,000 33,025,000 ·OF THE QUESTION OF PREFERENTLAL TARIFFS. MENT B. from the United Kingdom, the British Colonies and Possessions, Austria and other foreign countries, during the five years ending with the year 1002-0 13 15 16 27 19 12 FOREIGN COUNTRIES 20 22 22 23 Aulds: Deigiam France Germany Luogan lol. laud, Italy. Russia Umted Statcs 331130 Chios 1 Other (Treaty Foreigo Coun trus. Ports) £ 1.000 16,00 1 c Total of Imports from Co tries Foreiga . £ 1,000 £ 23.000 £ 1.000 19.00 22,000 2060 1,000 8. no 113,000 57.000 6,000 3,000 1,000 2,000 1,000 1,000 4,000 0,000 5,000 7,000 8.000 3,000 16,000 £ 7,000 60 3,000 3,000 61,000 20.000 1,000 1,000 2,000 82 0 (21,00 1,1MS 9000 379,- Per 2.000 6 (O -- 18,000 $1.2017 29 mo 22,000 1,600 1,000 1.000 16000 1,000 35,000 3,000 27 00 15,000 26 m 61,000 6,000 3,000 11,000 3,000 0,000 23.600 1,000 $1,000 2,000 11.000 3,000 1.00 1000 tong 27,6%) 0.000 100 210.000 1.000 72.000 1000 29,000 3000 61,000 106,000 125.000 153,000 song 0,000 7000 175,00) 0009 4000 6,000 1,000 1.000 31000 1,00 2,000 47,00 900 4,100 1000 1,000 170) 01.08 8 kg 21.000 65.00 1,000 24,000 8.00 0,000 18,00 1.600 2,000 3.OGO 2,000 8,670 9,000 10,000 0,000 45.000 3.000 1,0 1.000 8N) 2.ro 2,1K) 2.000 7.000) 2010 13.000 115.000 99.00 26.10 13 (0) 17.000 -8.000 380.no 3,000 1,00 3,000 3.000 11.000 35.000 1,000 1,000 65,000 11.100 11,000 11 000 1 000 3,000 20,000 64,000 39,000 70,000 2.00 3,000 7,600 3.000 133.000 < (KY 200 m 101 ut my 4. 1 1,000 3.000 2. W 1.CCO 11 000 154.000 1,000 21.000 17,000 2,000 5,000 25,000 LID be . JCP WA 6.000 4.6CY 27,000 5,000 2000 16 000 39,00 2,010 33 00 24,000 430 (0 IC 000 70 con CINE 11000 20 31,600 23,00 17.00 6,000 201400 23.00 3.ong 0,00 12,009 11.127,000 47,600 13,000 31,600 10 000 1.000 1000 1 000 3,000 8,000 caro 20,000 35 (vo 2,010 1,000 131,00 ry, 27,67 Jorn 9 (10) 8,000 8500 6 3,000 1,000 7 000 M 2,456 21,000 7. 26.000 1,000 2,000 3s con 33,00 mesmo 6.000 13.000 14.00 14 1- 2,000},@ 15,000,8 0 pk . Herr + .

·35 VIEWS OF THE GOVERNMENT OF INDIA STATEMENT C. Statoment showing the approximate percentages of Import duties levied in the United Kingdom, Ausória-Hungary, Belgium, I'rance, Germany, Holland, Italy, Russia, the United States and Japan, during the year 1902-03, on principal articles exported from India. [Approximato peroen tnges calculated on valges at ports of export.} 1 2 3 7 8 9 10 11 Principal nrticlce. United Austris. kingilom. Ilungary. Belgium. France Germans. Holland. Ita's. Rossia. United States, Japan, Frco. ... Free. Free. 6 ... 63 17 ... 6 l'rcc. 10 Frcc. Frco. Frce. Frcc. 07 20 Frco. 8 20 Froc. 20 Frcc. 33 20 Frce. 20 45 6 Frco. ... 17 Free. Frce, Frce. 20 37 20 Frce, Nriatice nad Guro for bothes and broor:A. Chronicals-Sallpcro Coſtco Coir, manufactures of Cotton, tant manufactures Drug, Mcdiclock, and Marco ties Druri aud medicincs Oplum Tobacco, manufacturea : Dscing and tanning materials- Cotch Indigo Mymbolans Ollicr forts Fouder, bran and callio fonu Frnits and realnhlcs- Cocoanut kernel Frec. Frrc. Erec. 225 20 Frec. ... 11. 20 .. ... ... 10 ... ... #00 l'rer. Proc. Proc. Frec. I'roc. l'rcc. l'rco. Hroc. l'rcc. Frec. Free. 0 Frer. 7 Free. 36 16 Frco. Free, Free. Frec. Frcc. . 15 12 374 194 Frce. ... .. Froe. ... .01 ... Froc . 10 20 Free. 5 1.7 31 43 . Grila 300 Tulse- I!{cc 110! in tlic husk Whc3t Other rorts lems, rar .. Frec. 68 0 Frce. 110 114 Frce. Free. Froc. I'rcc. Free. fireo. I. Freo, Free. Frec. Frec. 32 46 481 32 Frec. 39 Froc. 42 Free. ... 11 Frce. Frec. ... Free. Froc. Frec. Freo. 10. Ilides and skin Uldcs, MTT Illdes, dressed or lannce Ekins, mir Sklos, drcerdd or tapped Froc. Froc. Free. Free. Frec. Free. . Free. froc. .. Frec. Free. 3 Froe. Free. 15 Free. Free. 20 10 ... .. ... ... Free. Freo. 20 Free. 32 Home Juto, Tate mapalnctarcs Lac Mararcs Mctals Free. Frcc. 20 20 Frce. 10 Fice. Frec. 10 20 Free. Froc. 5 Froc. Free. 20 20 Froc. ... 20 Free. 5 Frec. 20 Frce. Frce. Free. 9 20 ... ... ... .. .. Free. Free. Freo. Free. . .. ulica. 63 ... . ... ... ... . ... ... ... ... ... ... 1 ... Free. Frco. Free Frce. Frec, Free. Frce. Frce. Frcc. Frcc. Frce. Freo. Free. Frec. Frco. Frec. Frec. Frec. Frec. Free. Free. ... ... 2 5 Frec. 27 6 ... .. ... 20 1. #. 102 Frce. 16 ... 19 63 Froe. ... 12 3 13 ... ... Frec. ... Frec. Free, 29 16 Frec. Free. Free. Free. Frec. Froe. Freo. Free. Frce. .. . Olls-Paralin-trar Castor Cocoanat Othcr eoris Provisions. Sccds-Castor Cotton Earthnuts Linsccd Mora or More Poppy Rapo Til Otbcr borte Silk, Tan. manufacturcs Spices Sagar, unrefined Тез Wood Tool, TATT manolactorcs. .. . Frie. Frec. Frec. Frec. Free. Free. Free. Frec. 16 Frce. 20 154 Free. Free. v. ... ... 12 Frce. 30 9 13 41 42 ... 10. Free. 4. . ... ... .. 00 ... 41 53 46 3 3 16 173 1. V Free. Free. Frec. Frec. 60 01 Freo. Free. Freo. .. ... 100 Froc. ... ... 100 6 21 20 3 38 pot 246 Frec. 20 32 60 Frec. Free. ... + .. .. 5 11 127 1 19 1 10 6 General Average NOTE. There the value of exports 18 less than £1,000, the columus bave been left blauk, ·5 STATEMENT D. tatement showing the approximate value of Exports of Indian merchandise (exclusive of Government Stores) to the United Kingdom, the British Colonies and Possessions, Austria-Hungary, Belgium, France, Germany, Holland, Italy, Russia, the United tates, Japan, China, and other foreign countries, during the year 1902.08.

·10 VIESYS OF TIDE GOVERNMENT OF INDIA STATE Statement showing the approximnte value (in pounds sterling ) of Exports of Indian mer and l'usi ssions, lu-tria-Ilungary, Belgium, France, Germany, Holland, Italy, Russia, 17 | 11 BRITISI POSSESSIONS. 1 1 6 10 UN+ COLOXICS AND P0350881076 IN Usia is alatliche Total of Esporte Total of to British Esports | Poesez. to Colon BioD8 ics and including PoBecs- Upited Klons. Kingdom.) Kingdoll. susimai. Amc. asia, rica, Africa, Turonc. licht Straits Seitlo. Others, set .. . ... .. 1. .. . • u.. . ! :) 1 100 ... ... ... . . .. .. . ... . ..! . . ... ... ... ... £ £ 3,1%) 2 25*** 10,6* 139,000 14, S.CWW} 2,600 131,000 3,000 110,000 131,000 22,000 13,(6) 05,000 2,mo 11,102) 181,000 17,67 00,000 1,00 251,000 11.14) 261,000 1,64) 2011,(** 62,000 1,100) 620,000 11 1,(**) 13, ne* 1,( 15,000 133,000 1.3.1) 11,170) 207,000 894,000 1,100m) L::. 12:17 2,701,000 2,703,000 !! เระ, (1.8.ฯ, สระ 73, (m) 3,00 2,000 621,000 078,000 1:23:17: 1 1,000 32,000 79,000 0}27/10,1,111,7*** 3,1**) 3,6KM) 3,650,000 3,923,000 (11n 1,17) 10,000 30,000 17,00 1.000 2,000 13,000 80,000 **.. 3,000 07,000 1,6 41,000 189,000 1,64) 1,0610 132,000 19.10.) i 11,70m) 3,11) 1,00 32,000 45,000 tim!!:,21 3. citis finiti 123,6***: 1423, (vi in, 6,4470 249,000 $5,000 4.67 9,000 0,000 3. m 57.6**? 5.00) 87,000 87,000 3!1,50 3,14! 19.08.11 33, 6:9,10)) 2,003 12,000 131,000 432,000 0,0) 69,000 69,000 27.0.1175.0:1 1.60** 70.com 13:15-17, 1,7-2, Tu Muin, C3,070 142,000 5,150,000 5,994,000 CH M, I** 20,000 1,979,000 (**) 12:17 I, (**) 210,000 210,000 2,0X 117,000 307,000 ... 100,000 3,197 10,0 10,000 05,000 III! Writici 2,000 *** 2,000 404,000 1,000 210,000 11';», PT tipiciurisanei 31,00 3,110) 31,000 1,316,000 1,000 57,000 J:;:, ** 9,08*9 30,000 3,312,000 20013:07 37:40 thos, :9,14m) -39,1W 653,440 119,000 1,822,000 2,105,000 6,0 0,11) 582,000 11,000 0.0*5 113*** 11:15 16,427 202,000 87,000 100,00 63,00 101, (W 0,00) 1,00 1,000 21,000 109,000 69,000 ... ... 3,100 4,OGO 69,000 l'araficions 1,0) 100 161,000 $7,000 $9,000 5,00 132,000 0,000 5,000 51,000 (M) (13:13:21 3.000 1.0X $3,000 20,000 85,000 1,000 8,019 70,000 0:1:certs 83,170 11,000 2,000 71,000 141,00 381,000 330,000 I'murinioni 205,000 11.07) 8,000 626,000 8,000 Cillon 1,000 41,000 1,000 ... 1:a:tlinuty 1,000 3,000 13,000 17,000 1,363,000 1.1n01 1,31"),(un) 2,000 Bloma or Vlorna 1**) 1,000 194,000 1,1) L'of'll 1!1,0) Hapa 15,000 16,000 15,000 50,000 75,000 2,010 20.10 8,000 29,000 Other sort, 1,000 196,000 193. (KM) 1,00 13,000 $1,000 Silk, rox 1,000 1,000 6,000 2,000 manufactures 171,000 120,000 13,000 1,000 10,000 61,0m) $9,000 1,000 53,000 12,000 Sple's 1,000 11,000 $1,000 332,000 4,518,000 3,000 6,000 142,000 151,000 10,000 ,1 (1,**) 0,100 447,000 TCS 107,000 4,000 62,000 4,00 1,000 46,000 31'), 0:0) 765,000 logu 703,0) 117,000 Wol, mi 2,000 7,000 1,000 11,000 110,00) manufactures 739,000 302,000 1,000 02,000 11,000 3,000 79,000 137,001 4.4,000 107,000 Orber orticles not speciücu GRAND TOTAL 21,103,000 0,203,000 5,025,000 3,639,000 1,840,000 958,000 $75,000 10,000 18,001,000 39,226,000 ... ... ra .. . .. . ... ... .. coa . . . . 4.4 ... . ... + Savar, brelaci ... 4. . der 1,000 ...

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·12 VIEWS OF THE GOVERNMENT OF INDIA 5 STATE Statement showivg the approximate value (in pounds sterling) of Imports into India from France, Germany, Holland, Italy,, Russia, United Siates, Japan, China, and 1 2 3 7 8 10 BBITISH POSSESSIONS. COLOX1BB AND POSSIISIONS IN Pilocipal Articles. doio. United: Kingdom, Africa: Austral. Ame. asia. rica. Total of Imports Total of from Imports British from Posses- Europe. British siopa (in Colonics cluding And Pos Vuited: sessions. Kingdom) Hooge Kong. Straits Bottle mente. Others: . 10. . . BU .. ... ... . .. 1,000 . 3 30 .. .. . 100 .. ... .. . . .. 6. .. . . .. .. . .. ... .. . .. God . 4. .. .. ... .. . . £ ¿ 2 2 £ £ Animals, llring 18,000 2,000 Apparel 205,000 0,000 CC0,000 20,000 ams, ommunliions, and mili. 2,000 206,000 224,000 1,000 147,000 ... 39,000 1,000 688,000 Inrs ftorcs, 5,000 6,000 163,000 Booksood prlo cd parers'. 100,000 Building and Euglacering 1,000 111,000 1,000 1,000 materiale: 167,000 1,000 2,000 116,000 Candles 30.000 Caoutchouc, maonſactarcs'ot ... 30,000 98,000 Carringes and Corts. (excludlos 208,000 36,000 1,000 railtray carrloges) and parts 2,000 210,000 thirrcot: Chcnicals 200,000 2,000 3,000 Clocky and matcäbg 25,000 1,000 5,000! 301,000 Coul 1,000 1,000 26,000 230,000 Coral 0,000 7,000 237,000 5,000 Cottou, MITY 1,000 5,0001) 5,000 45,000 2,000 vist and yarn 3,000 47,000 1,957,000 6,000 2,000 17,693,000 0000101,463,000 28,000 20,000 50,000:17,943,000 30,000 2,20,000 47,000 2,000 1,000 ials €6,000 302,000 33,000 38,000 1,000 39,0001 72,000 4,000 100,000 0,000 1,000 14,000 119,000 112,000 112,000 Glass and glassworo 118,000 8,000 10,000 2,000 26,000 141,000 Hordiraro and cutlery 020,000 3,000 4,000 7,00011 036,000 Iparramouts, apparatus, qu'a an 331,000 1,000 2,000 9,000 337,000 pllauces. Ivory $1,000 17,000 28,000 45,000) 89,000 Jewellery, and piate of gold and $10,000 15,000 33,000 16,000 64,000 470,000 silver, Lcatlicr manufactures 161,000 3,000 3,000 164,000 Liqnors 858,000 1,000 0,000 15,000 2,000 3,000 27,0001 895,000 Machinery and mill work 1,801,000 1,000 3,000 40001;803,000 Matches 13,000 1,000 07,000 72,000.1 €5,000 Metals- Copper 019,000, 131,000 2,000 66,000 2,000 40,000 241,000 1,154,000 German Silfor 46,000 46,000 Iron 1,523,000 2,000 1,000 23,000 20,000 1,549.000 Lead'. 409,000 1,000 1,000 5,000 Steel 597,000 2,000 2,000 1: 4,000 : 001,000 Zinc or spcller 05,000 1,000 1,000.1 69,000 uusiinern) 89,000 12,000 7,000 10,000 : 109,000 Ottier kind's 00.000 2,000 5,000. 66,000 3,000 06.000162,000 208,000 Paints and colours* 15,000 8,000 23,000 231,000 171,000 Paper and pasteboard 1,000 4,00011 175,000 3,000 50,000 15,0001 15,0001 35,000 Pitch; Tar, and dammer . Provisions 505,000 10,000 279,0001 16,000 1,000 11,000 310,0001 821,000 Railitáy plast'and'rolling stock 1,048,000 16,000 16,000. 1,064,000 53,000 250,000 63,000 East 206,000 Silk, manaiactures of 160,000 107,000 23,000 132,000:1 282,000 2,000 132,000 132,000 2,000 160,000 1,000. -Stationery (ercading paper) 167,000 1907,000. 1,968,000 Icipca 1,000 1,265,000 201,000 $80,000 121,000 6,000 81,000 de-chests 76,000 5,000 25,000 1 17,000: 104,000 1000 170,000 4,000 Tobacco, manufacturca 86,000 1,000. ; Toys'aná regnisites for games 1,000 85,000 3,000 115,000 5,000 1,000 105,000 Umbrellas, including: Parasola 3,000 and'sunshades: 654,000 1,000 652,000 1,000 Wool, manufactures of 96,000 870,000 262,000 778,000 250,000 189,000 2,000 1,616,000 2,196,000 Ollior articles not specified: ... ... 4,000 .. .da ... . ... . .. ... .da ... ... . .. 10 .* 1. 400 ... ... . ... 4 . .. ... .. .. .. .. 1,000 .. 440 2,000 2,000 $$s ... 0,000 4,060.4,005,0001 39,844,00C 94,840,000 / 4,002,000:1,652,000 620,000: 1,491,000.: 320,000. GRAND TOTAL.

·ON THE QUESTION OF REFERENTIAL TARIFES. MENT E. the United Kingdom, the British Colonies and Pokstesions, Austria-Hungary, P other foreign countries, during the year 1902-03, 15 / 15 13 IS 18 FOREIGN COUNTRIES, 19 29 23 der- Austria Belgłam. Prazce.meds. Vapgutt. Lol. land. Italy. United Rassis, states, Japad. Rasis . Other Total of China Poreign Imports (Treaty Conn Irota Porto). Iriet. Foreign Countries. e d To € £ 3,000 168,000 £ £ 10,000 1,00,000 7.000 € . 87,000 2,000 e . 1 000 1,000 2000 2,000 e 23,000 15,000 £ 14000 £ 1 000 3,000 4,000 2,000 € 8,000 8,000 2,000 1,000 8,000 2,000 1,000 7,000 70,000 35,000 15,000 .. 3,000 173,000 4,81 000 37,000 11,000 4.000 7,000 1,000 297, 1,189,0 150,00 173,00 60 3,000 8,000 1,000 8,000 $1,000 14,000 100.00 27,000 8,400 89,000 63,000 42.000 289,000 09 21 000 1,000 0.000 400 2,000 1,000 17,000 3,000 27,000 1,000 18,000 07.000 sc9,000 2 000 85,000 6,000 16 000 83,000 103.000 1.000 2,000 0,000 1,000 10 000 25.000 $1,000 31 000 2000 30,000 35 000 2,000 2,000 18 000 19,000 49,000 73,000 1,000 20,000 120,000 124000103 000 74.000 45000 1.637,000 121,000 182,000 148.000 23 000 8 000 1000 7.000 11,000 625 000 15,708 000 20.000 20 000 1,000 1.000 7,000 $9,000 4,00 205 000 21.000 17,000 39,000 223,000 25,000 141,000 125,ono 44,000 2.000 1.000 9 000 13 ano 610 000 10,000) 1,000 19.000 1,000 2.000 8 on 5,000 2,000 83,000 153,600 4 000 233000 303 000 20,000 $1,000 22,000 21,00 12000 67,000 2000 13,000 10.000 37,000 3 000 10000 1.000 0,000 30 000 7,000 3.000 1,000 2,000 400.ro 8,000 23,000 1,23,00 17,000 69,000 4 000 4000 8,000 10 000 8,000 6000 113,000 11 000 10 CM 2,000 354,000 519,00 COD 100 8 000 20 000 15000 2000 3000 6.05 tovo 77,000 0,000 4000 3,000 13 000 220,00 0 000 2000 1,000 23,000 1,7-10 1,000 27,000 80,000 29,000 1000 COLO 160,000 -,010 8.000 22.00 91,000 10 000 UL 000 4.000 3.000 33,000 2.log Won.com1,223, 2000 331,000 45,000 4,000 11.40 2000 10,000 37,000 201,00 1,000 2009 CLO 260 00 3,000 04.000 X.ro 15,000 3,000 19,03 10.000 C4,0! 17.00 St. 1000 wo 2,000 1.700.000 49.000 21,160 0 1.000 1000 11.000 3,000 Core 0 1.000 250V 1,000 45,000 2,000 1.000 2,730 1,030 1,000 2010 5000 20.000 15.000 10.000 23,000 10,000 0.000 Loon BLE 1070 125,000 IN cs 20 m 000 150.000 9,000 10.00 103,000 1.000 7.000 er, 1:34 UN 1 000 22.00 127,000 2,100 20 000 4,000 Bux 2.000 1000 11,000 10,000 1.000 4,000 4000 94.000 2.000 3.000 2.147 1.000 by 6.000 1,6. ::: lu 6,000 3.000 3.000 11.000 3.000 $4,600 1,000 1,000 6,000 XIV 1,000 2,000 * 10 11000 9000 201 000 18,000 9000 3,000 €5,000 9.000 77,000 9.000 mon 2,5 m, nu ui 2,000 1 3.000 10 21,600 18.00 3 8,000 0.000 3K 3.000 2,00 Luo LE 10 S.COO 144,000 1.000 1.000 1.sc.god tin, wo es $ 9.0 y.

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