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It is generally agreed that, whatever obstacles there may be to an increased demand for British goods in foreign countries, the various parts of the British Empire should concentrate upon the reciprocal supply of Empire commodities, and that while each country included within the Commonwealth is justified, if it desires, in protecting its own local industries, it should in that case give preference to the other countries of the Empire over goods of foreign production. The great self-governing Dominions are prepared to accept this principle, and this is the lesson which Wembley was designed to teach. But speakers and writers on this subject, while they enlarge on the development of the Dominions, the great market for British goods and the wide field for British colonists which they offer, pay insufficient attentionso it seems to the writer-to the very special position of India and VOL. XCIX-No. 587

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to the paramount importance of conserving to the United Kingdom an increasing Indian demand for British goods. Inasmuch as India contains three-quarters of the total population of the British Empire, it is surprising how little she seems to figure in the picture.

Is it that the Indian market is regarded as reasonably secure? Or is it that it is felt that a preference for British goods under the Reforms is unattainable?

These questions are well worth examination.

In 1922, shortly before I relinquished the office of LieutenantGovernor of Burma, I submitted to Lord Inchcape's Committee a note on Indian finances which also contained certain suggestions upon this subject of preference for British goods. That Committee held the latter subject to be outside their terms of reference. Now, however, with the general depression of industry and the grave unemployment from which this country is suffering, I venture to revive these suggestions for the consideration of those best qualified to form an opinion on them. I quite recognise that there is a risk of their being rejected on a cursory reading, but closer examination may show that they offer some amelioration of the present ills, with important potentialities beyond the immediate future.

India, as judged by European standards, is, of course, a poor country; but numbers tell. An addition of 3d. per head to the purchasing power of 320,000,000 people aggregates 4,000,000l. sterling, and an addition of 1 rupee per head with the exchange value of the rupee at Is. 6d. represents 24,000,000l. In 1923-24, the latest year for which Indian trade statistics are available, India took 228 crores worth of imported merchandise exclusive of Government stores. Of this total 147 crores represented imports from the British Empire and 81 crores imports from foreign countries. Out of the 147 crores, 132 came from the United Kingdom, equivalent at the current rate of exchange to 100,000,000l., and in the boom after the war the exports from the United Kingdom to India were 50 per cent. larger than this. The average normal demand may be reckoned to be at least 120,000,000l. The table shown on page 3 is of interest.

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Of Manufactured Articles' in 1913-14 the percentage of foreign goods was about 20. Now, with the largely increased post-war prices, the foreign percentage is approaching 30. In 1909-10 the foreign proportion was only 12 per cent., so that in fifteen years the British proportion has declined from 88 per cent. to 70 per cent. There is no guarantee that the decline will not be progressive.

These figures take no account of increased Indian production ; they deal merely with India's imports from overseas. It is obvious that British industry cannot expect to be favoured in any way at

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