611.62M31/82
The Vice Consul at Wellington ( Hoffmann ) to the Secretary of State
[Received October 10.]
Sir: I have the honor to refer to the Department’s unsigned Instruction of August 3rd, 1934,7 no file number, in which this Consulate General is requested to report on the present situation with reference to discrimination against American commerce in Western Samoa, and to inform the Department confidentially the probable reception by the New Zealand Government of the Department’s request through the American Embassy in London, that discriminatory measures at present in force be removed. This action is requested in view of the removal of American Samoa from the application of the American coastwise shipping laws in accordance with a joint resolution of Congress approved on June 14th of this year.
There is no discrimination against American commerce as such at present in effect in Western Samoa, and the only violation on the part of New Zealand of the Convention of December 2nd, 1899, is the application of preferential rates to British goods entering that territory. Under the customs tariff applicable to Western Samoa, duties are charged at the rate of 17½% ad valorem on goods of British origin, and at the rate of 25% ad valorem on all other goods. There are, however, certain exceptions to this, namely, cigars, cigarettes and tobacco, timber, kerosene and benzine, upon which specific rates are charged which are the same for all goods, whether British or otherwise. During the year 1933, total imports from the United States, Hawaii and Tutuila, were valued at £12,283. Of these, goods to the [Page 1007] value of £6,079 were charged the specific rates above mentioned, and accordingly were at no disadvantage as compared to similar articles of British origin. Thus slightly more than one-half of the total trade, namely £6,204 worth, was subject to rates higher than those charged to competitive British goods, in violation of the Convention of 1899.
With respect to the possibility of the admission of American goods at parity with British, it is difficult to state what the attitude of the New Zealand Government will be. So far no word has been received here from the British Foreign Office, and the Government of New Zealand was quite unaware that the restrictions against British shipping had been removed from American Samoa. The official charged with Samoan matters in the Ministry of External Affairs here stated that, in view of declining revenues, any lowering of the present tariff would be unwelcome. Moreover, were American goods to be granted preferred treatment over those from other foreign nations, a serious question would arise as to whether or not the other nations would not be justified in demanding like treatment for their goods. Although it was pointed out to him that the 1899 Convention established certain rights to American goods not enjoyed by those of non-signatory powers, some doubt remained in his mind, nevertheless, and he appeared to consider it a matter that would have to be carefully looked into.
The Right Honorable G. W. Forbes, who is Prime Minister and also Minister of External Affairs, was interviewed in this matter, but he was unwilling to commit himself, and stated that no action could be taken or contemplated, by the New Zealand Government until official word of the change in the situation had been received from London. Mr. Forbes also expressed a doubt as to the possibility of granting American goods treatment not granted to those of other nations, although it is believed this question does not offer serious difficulties. Mr. Forbes stated that as the whole matter was one of more concern to Great Britain than to New Zealand, in that Great Britain was the signatory to the Convention and British rather than New Zealand shipping would be more likely to be affected, the New Zealand Government undoubtedly would be guided in its action by the wishes of the British Government. Should it be decided to place the entry of American goods upon parity with those of British origin, this would be a very easy matter to effect, in that all that would be necessary would be an Order-in-Council issued by this Government.
From what I have gathered in the conversations above referred to, I do not believe that New Zealand will be at all anxious to lower the tariff on the entry of American goods, and that, if left to itself, no such action will be taken. However, if the British Government decides that it is advisable and recommends it to this Dominion, it is believed that the wishes of the Foreign Office will be complied with. [Page 1008] That opinion is based upon a review of the case solely upon its merits. Naturally no mention was made of the other factors entering into it, namely those mentioned in the next to the last paragraph of the Department’s Instruction No. 506, of August 3, to the American Ambassador in London, that the settlement of this question is the first step towards recognition by the United States of the Mandate, and that it is a preliminary to a possible trade agreement with New Zealand. Were these other considerations to be made known, it is quite possible and even probable that the Government of this Dominion would be more inclined to abide by the terms of the 1899 Convention.
Respectfully yours,
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