Subject: Proposed Preferential Margin of Duty on
Tobacco Imported into Nigeria and the Gold Coast.
It will be noted that American tobacco exports might be adversely
affected by such action, and that Dr. Taylor states that “the near
approach of the time when these preferential duties may be imposed,
[Page 732]
namely October 1936,
suggests the advisability of an early attempt to forestall such
action”.
[Enclosure—Memorandum]
The Agricultural Attaché in the United
Kingdom (Taylor) to the
Ambassador in the United Kingdom (Bingham)
Reference is made to the interview yesterday with Mr. E. J.
O’Brien, Jr., representing Edward J. O’Brien and Company, Leaf
Tobacco Brokers, of Louisville, Kentucky, concerning the
threatened imposition of preferential tobacco tariffs in two
British West African Possessions, namely Gold Coast and
Nigeria.
The situation seems to be that the United States has an annual
export trade of about 10,000,000 pounds of tobacco exported to
West Africa, of which about 5,000,000 pounds are sent to British
Possessions. Since April, 1932, Cambia has had a duty of 1s. 3d.
on unmanufactured tobacco from foreign sources compared with 1s.
if from Empire sources. Since the same date Sierra Leone has had
a duty of 1s. 6d. on foreign unmanufactured tobacco and 1s. 2d.
if from Empire sources. Gold Coast, since 1928, has had a duty
of 2s. 3d. and Nigeria, since 1924, a duty of 2s. per pound
without preference to Empire sources. Last October France gave
12 months’ notice of termination of its treaty with the United
Kingdom1 guaranteeing, among other
things, equality in duties on French and British goods imported
into the Gold Coast and Nigeria. The Tobacco Federation of the
British Empire on April 30, 1936, submitted the following
request to the Secretary of State for the Colonies:
“The Tobacco Federation understands that
the French Government may decide not to renew the
Anglo-French Convention of 1898 relating to the equality
of fiscal treatment for English and French products
imported into certain English and French West African
territories. In which event the Tobacco Federation asks
that the Secretary of State for the Colonies may
recommend to the Governments of Nigeria and the Gold
Coast that a preferential margin of duty equal to 25% of
the full rate, with a minimum of 3d. a pound, be allowed
by them on tobacco leaf of British Empire origin
imported into Nigeria and the Gold Coast.”
Most of the tobacco now entering the Gold Coast and Nigeria is of
Black Fat and Dark African types originating in the United
States.
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The value is
relatively low so that a 25 percent preference would provide a
substantial opportunity for the entry of tobacco of similar
types from Nyasaland and other British producing countries.
The near approach of the time when these preferential duties may
be imposed, namely October, 1936, suggests the advisability of
an early attempt to forestall such action.
Tables are attached2 showing total imports of unmanufactured
tobacco into Sierra Leona, Gold Coast and Nigeria for the years
1925 to 1934, and exports by types from the United States to
these countries in 1934 and 1935.
Respectfully,
