"الملف 73/7 II (D 22) وضع الكويت - سكة حديد بغداد، والمفاوضات الأنجلو تركية" [و‎‎٢‎٤‎٠] (٥٤٠/٤٨٧)

{Received on the 26th August 1912, with Political Secretary's letter No. 32, dated
the 9th August 1912.)
[B.]
ASIATIC TUEKEY AND AEABIA. [July 27.]
CONFIDENTIAL. Section 1.
[31714.]
Memorandum communicated to Tewfik Pasha.
In an annex to the memorandum handed to the Turkish Ambassador on the
18th July it was indicated that a further memorandum would shortly be presented
embodying the views of His Majesty's Government with regard _ to the customs
treatment of certain classes of cotton yarns and manufactures on importation into
Turkey, a matter to which they attach great importance in connection with any
arrangement between the two Governments for the increase of the present rate of
the Turkish customs duties.
Bis Majesty's Government understand that the Turkish Government propose
a general increase from 11 to 15 per cent, ad valorem, and that this is desired not
as & a measure of protection for native industry, but solely as a means of increasing
the Turkish revenue. His Majesty's Government therefore think it right to point
out that the great bulk of the present trade between the two countries in cotton
yarns and piece-goods is a trade in articles of a cheap description suited to the
needs of a large body of consumers of limited means, and that, after careful en
quiry, they are advised that an increase of duty from 11 to 15 per cent, on these
articles would certainly cause either a diminution in the volume of the trade on
account of the increase of price or a deterioration in the quality of the goods
in order to retain the market, and that most probably it would have both these
effects in varying degrees according to the class of goods. This being so, the
Ottoman Government will realise that the proposed increase of duty must fail
to yield a corresponding increase of revenue, since it will be levied on a smaller
volume of goods of lower average value.
In these circumstances. His Majesty's Government suggest that the interests
both of the Turkish revenue, of the consuming population in Turkey, and of British
manufacturers would be best met by limiting the increase of duty on cotton yarns
and piece-goods to 2 per cent., viz., from 11 to 13 per cent, ad valorem. In making
this proposal His Majesty's Government think it desirable to call attention to the
fact that British trade with Turkey is considerably greater than that of any other
country, with the result that the burden inflicted by the proposed increase of
Turkish duties will fall much more heavily on British manufacturers and traders
than on those of any other nationality. His Majesty's Government do not of
course suggest that any special treatment should be accorded to British goods,
which is not at the same time extended to similar goods of all nationalities, but
they urge that the facts to which they have called attention justify-/ the most
favorable treatment by Turkey of the classes of goods in which British trade is pre-
x dominantly interested, especially since there is ground for believing that the in
terests of British trade are in this matter in accordance with those of the Turkish
Government and people.
Foreign Office, July 27, 1912.
(Copy sent informally to the Army Department for transmission to the
Division of the Chief of the Staff.)
G. M. Press, Simla —No, C.-393 F. D.—7-9-12—30,-J.N.B.
91