RECIPROCITY WITH SOUTH AFRICA (TELEGRAMS RELATING TO).

Appendix to the Journals of the House of Representatives, 1906 Session II, A-07b

A—7b.

Session 11. 1906. NEW ZEALAND.

RECIPROCITY WITH SOUTH AFRICA (TELEGRAMS RELATING TO).

Presented to both Houses of the General Assembly by Command of His Excellency.

To the Premier of Cape Colony, Cape Town. 9th October 1906 Please cable me on what terms New Zealand can enter into African Tariff Union, enable us to have reciprocity treaty with you, such as other British colonies now enjoy. Ward,

Prime Minister.

Memorandum for the Hon. the Premier. Wellington, 16th October, 1906 The Governor desires to inform the Premier that His Excellency has to-day received the following telegram from the High Commissioner of South Africa :— " 15th October.— 32/44.—Beferring to my telegram of the sth June, you are probably by now m possession of full particulars as to new Customs Convention, but, in case you are not following are main points. ' 8 " Under Articles 3 and 4, preference has been extended to certain articles on the rated list including butter, corn and grain, flour, fodder, Quaker Oats, fruits, lard, and meats. " The general ad valorem rate has been increased from ten per cent, to fifteen per cent ad valorem, with a preference rebate at three per cent, ad valorem. " Two-and-a-half-per-cent. list has been increased to three per cent., with a preference rebate of the whole amount. " The distinction between refined and unrefined sugar has been eliminated. " Preferential treatment is of course contingent on the grant by New Zealand of equivalent reciprocal privileges; and, on hearing from you that this has been provided for by legislation the various parties to the Customs Union will decide as to date on which preference may, by agreement with you, come into operation. " In order to comply with stipulation [s] in Article 4 of Convention as regards equivalent reciprocal privileges, it is not intended that preference accorded to South Africa should correspond exactly with that accorded to New Zealand. " The intention rather is that, as in the case of Canada and Australia, preference should be given to articles which South Africa might be able to send to New Zealand. " It is suggested that New Zealand grant the following rebates : Feathers, ten per cent • fish, halfpenny per pound; fruits, dried and green, whole duty; maize, threepence per cental : spirits, five shillings per gallon ; sugar, two shillings and sixpence per cental; tea, one penny per pound ; tobacco, one shilling per pound; wines, four shillings per gallon; and all other articles not less than twenty-five per cent, of any duty which may be leviable. " It is understood that no duty will be charged on angora hair and diamonds, the produce of the South African Customs Union, without reference to parties thereto. _ " Although some of these rebates may appear to be somewhat high, I have to point out that, while New Zealand exports a considerable quantity of goods to South Africa, return exports are practically nil. r " If your Government agree to these proposals, and legislation can be passed in time suggest that preference take effect from the Ist of November or earliest possible date thereafter." Plunket, Governor.

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