pm.^ Ai aI O! Oi 1 1 41 41 81 6; 2; 7; Great Britain. Coranittee on rubber situation in British colonies and protectorates, Supplennentary report. SUPPLEMENTARY REPORT of the COMMITTEE appointed by the Secretary of State for the Colonies, to Investigate and Report upon the present RUBBER SITUATION m BRITISH COLONIES AND PROTECTORATES. Presented to Parliament by Command of His Majesty. October, 1922. LONDON: PUBLISHED BY HIS MAJESTY'S STATIONERY OFFK^E. To be purcliased through anv Bookseller or directly from H.M. STATIONERY OFFICE at the followiui,' addresses: Imtkrial House, Kingsway, London, VV.C.2. and 28, Auingdon Stiiket, London, S.W. 1 37, Peter Stkket, Manchester ; 1, St. Andrew's Crescent, Cardiff; or 23, FoKTU Street, Edinburgh. 1922. Price '3d. Net. Cmd. 1756. TERMS OF REFERENCE. " To investigate and report upon the present Rubber Situation in British Colonies and Protectorates for the information of the Secretary of State for the Colonies, and to advise what remedial measures should be taken to improve the existing position." COMMITTEE. Sir JAMES STEVENSON, Bart.. G.C.M.G. {Chairman) Sir STANLEY BOIS. Sir EDWARD BROCKMAN, K.C.M.G. Mr. E. J. BYRNE. Mr. WM. DUNCAN. Sir GILBERT GRINDLE, K.C.M.G., C.B. Mr. H. eric MILLER. Sir EDWARD ROSLING. Note, — No expenses have been incurred on account of this Com- mittee except those of printing and publication, amounting to £5 5s, HD 9IGI SUPPLEMENTARY REPORT OF THE RUBBER COMMITTEE. The Committee concluded their report of June, 1922,* by stating that they were unable to carry their enquiry further until the attitude of the Dutch was definitely known, as they did not feel justified at that time in recommending the adoption by one or more British Colony or Protectorate of either of the proposed schemes for Government intervention in the rubber industry. Since that report was issued, the reply of the Netherlands Govern- ment to the proposals for co-operation with His Majesty's Govern- ment in legislating to ameliorate the situation in the industry has been received. The Netherlands Government has decided not to take at present any legislative measures to restrict the production of rubber in the Netherlands. 2. The Committee have considered the question of whether in these circumstances a policy of restrictive measures in British Colonies and Protectorates alone could be adopted to the advantage of the British rubber industry, and in this consideration they have been influenced by the following facts : — (a) Excessive and increasing production of rubber owing to the failure of the producers to make voluntary restriction effective with the consequent continuation of the depression in the price of rubber. (b) The general demand by the leaders of the rubber industry both in London and in Malaya for restrictive measures if necessary by one or more of the British Dependencies inde- pendently of the Netherlands Government attitude. (c) The Committee have had before them the latest available estimates as to the figures of the world's production and absorption of rubber in 1922, together with figures of existing stocks. Notwithstanding the fact that the rate of the world's absorption of rubber for the present year shows a substantial increase on the Committee's previous figure of 300,000 tons, they have decided to base their recommendations on the figure of absorption mentioned in their previous report, in order that they may err on the safe side. 4. The Committee have closely investigated the effects of the introduction in British Colonies and Protectorates of legislation framed to bring about more stable conditions in the industry even without Government control over production in other territories. * [Cmd. 1678.] I 5. I^jn(|uines have been made as to the possibility of securing voluntary restriction of tapping on British estates situated in such other territories in association witli any restrictive measures that might be taken in the territories of the British Empire ; the Com- mittee understand that the Rubber Growers' Association have obtained the assurance of co-operation in this sense from the majority of these estates. This support will proportionately reduce the restriction in British Territories necessary to effect a re-adjustment of supply to demand. G. In view of these new considerations and the predominating interest in the rubber industry held by British producers, the Com- mittee have felt a revision of their previous attitude to be justified, and they accordingly desire to recommend that a scheme of Govern- ment intervention should be put into operation in Ceylon, the Malay States and the Straits Settlements as soon as possible. The scheme which they recommend is practically that of Scheme 2 in their previous report, with certain amendments. RECOMMENDATIONS. (1) The scheme recommended adopts as the standard production the actual output of each producer during the 12 months — 1st November, 1919, to 31st October, 1920 — amplified in accordance with the sug- gested Rules contained in Appendix "A." (2) In lieu of existing Export Duties, a minimum export duty is to be levied on that percentage of standard production which is allowed to be exported under this scheme at the minimum rate of duty. The Committee recommend that this minimum be fixed at the lowest possible rate not to exceed Id. per pound. If a producer desires to export a quantity greater than that allowed to be exported at the minimum rate of duty, he shall pay an export duty on his total export during that period of twelve months on the following scale : — Not exceeding 65 per cent, of standard production Over 65 per cent, but not exceeding 70 per cent. 70 „ „ ,. 75 75 80 85 90 95 100 80 85 90 95 100 Duty per poimd over all. s. d. 4 5 6 7 8 9 10 11 1 At the initiation of the scheme the percentage exportable at the minimum rate is to be 60. When the rubber situation improves so as to justify allow-ing an increased percentage of standard production to be exported at the minimum rate of duty the minimum would be substituted in its appro- priate place in the scale. (3) Alterations in the percentage of standard production would be governed by the price of standard quality smoked sheet in the London market, and it is proposed that, when the average price for such rubber (luring three consecutive months has been maintained at not less than Is-. M. per pound London landed terms, the percentage of production which may be exported at the minimum duty would be raised auto- matically by 5 for the next ensuing quarter. In the event of such average price being maintained at not less than Ls. Qd. per pound. London landed terms, during the whole of three consecutive months, the percentage of production which may be exported at the minimum duty would be raised automatically by 10 for the next ensuing quarter. (4) Furthermore, in order that the operation of the scheme may secure the desired result, even though for reasons at present unfore- seen 60 per cent, of standard production should prove to be too liigh, the Committee recommend that if during the second quarter after the initiation of the scheme or in any subsequent period of three con- secutive months, the price of rubber, as hereinbefore defined has not averaged at least Is. per pound, the percentage of standard production that may be exported at the minimum duty shall be reduced to 55, and if that reduction is not effective in raising the average price over the following three months to Ls. M. then it shall be reduc^ to 50 at the end of the three months, and so on by reductions of 5 per cent, at the end of each three months until that average price is secured. Once the percentage has been lowered it would not be increased except on the basis of a price of 1.5. Sd. as aforementioned. If during any quarter when the percentage of standard production that may be exported at the minimum duty is for the time being fixed at not under 65 per cent, and the price during that quarter has not averaged at least Is. Sd. per pound, the percentage for the ensuing quarter would he reduced by 5. (5) The application of the scheme in their several territories would rest with the local Governments concerned. (6) The Committee recommend that an Advisory Committee be appointed in London for the pm'poses of co-ordinating the operation of the scheme in Ceylon, Malaya and such other territories as may be involved. They suggest that this Committee should consist of official and non-official members, whose duty would be to advise the Secretary of State on all matters referred to it in connection with tlie operation of the policy now recommended, and that it should be charged with the responsibility of advising him as to the alterations in the rate of minimum duty required under the scheme. (7) The Committee recommend that the Governments of the territories concerned should set up Committees on which there should be representatives of the industry to deal with cases for special con- sideration in regard to local application of the scheme, and the Com- mittee annex to this Report rules that would require to be observed by these local Committees in the administration of the scheme. (8) The Committee cannot conclude this Report without observing that, apart from the financial relief that may be expected to accrue to all rubber producers from the scheme, the discouragement it affords to more drastic tapping, cannot but benefit the estates of those manage- ments who are voluntarily or compulsorily associated with the scheme and leave them ultimately in a stronger position than the estates whose trees have been subjected to tapping on an excessive scale. J. STEVENSON. STANLEY BOIS. E. L. BROCKMAN. E. J. BYRNE. WM. DUNCAN. G. GRINDLE. H. ERIC MILLER. EDWARD ROSLING. G. E. J. Gent, Secretary. October 2nd, 1922. APPENDIX A. RULES FOR THE GUIDANCE OF COMMITTEES. In issuing certificates of standard production — 1. " Standard production " shall be the quantity of dry rubber produced from any holding during the period from 1st November, 1919, to 31st October, 1920, provided that if the owner of any holding is unable to declare the output from his holding during that period in the absence of proper records, or if he proves to the satisfaction of the Committee that the output from his holding during that period was abnormal for any of the causes referred to in these rules, the Committee shall certify some other quantity as the standard production for such holding; in accordance with the rules as set out hereunder. 2. If any owner is unable to declare the quantity of rubber produced from his holding during such period, the Committee shall assess the amount to be deemed to be the standard production for that holding, but the quantities so assessed shall not exceed the quantity attained by multiplying the number of acres planted with rubber of each age by the output per acre allotted for trees of each age in accordance with the following table : — Under five years Between five and six years Between six and seven years Between seven and eight years Eight years and over Maximum Output for 12 Months. .. Nil 120 pounds .. 180 „ .. 240 „ .. 320 „ 3. If any owner claims that a portion of his holding is planted with trees which were not tapped prior to 1st November, 1920, he shall be allowed as standard production in addition to his output from 1st November, 1919, to 31st October, 1920, an amount calculated according to the table in Rule 2 above. 4. If any owner claims that during the period 1st November, 1919, to 31st October, 1920, his output was less than his normal output owing to — (a) Lack of labour ; (6) Abnormal ill-health of his labour forces ; (c) Disease of his trees, from which they have since recovered ; (d) Resting of the trees ; or (e) Any other reasonable cause ; such addition shall be made to his actual output from 1st November, 1919, to 31st October, 1920, for purposes of certification a.^ would, in the opinion of the Committee, equal the loss of output sustained thereby, but in no such case shall the total output for the holding exceed the quantity to which he would have been entitled if he had applied under Rule 2 hereof. 5. If any owner can prove to the satisfaction of the Committee that prior to the commencement of the enactment he has entered iufo bona fide forward contracts for the sale and delivery of a quantitj' of rubber in excess of the amount of his uoimal " atandard production " as arrived at under these Rules, diminished by the percentage of restriction for the time being in force, and that either — (a) Such contract specifies that the rubber to be delivered under the contract is rubber from his holding only ; or (b) He is unable to contract on the market to buy in the excess contracted for over the quantity he would be allowed to produce at a price not greater than the price at which he has sold, the Committee may allow him as standard production such quantity as when diminished by the percentage of restriction for the time being in force would allow him to jiroduce a sufficient quantity to cover his contracts, provided that certificates issued under this Rule may be revised bj' the Committee at any time when such contracts expire or the percentage of restriction for the time being in force is altered. 6. Certificates of " standard production " when issued may not be varied within twelve months of the date of such issue, but on the expiration of such period of twelve months or any subsequent period of twelve months any owner may apply for revision of the quantity for which his holding has been assessed on the grounds that further areas have since the issue of the certificate attained the age of five years and are in a condition to tap. In such case the Committee shall increase the quantity assessed in accordance with the Rules laid down herein. 7. If any owner states on his application form that he desires to be assessed at any quantity other than his actual output from the period of 1st November, 1919, to 31st October, 1920, and gives his reasons for this request, the Committee shall, before issuing any certificate, notify such owner of the quantity at which the Committee propose to assess him, and inform him that in the event of his objecting to such assessment he must state his case personally or by his repre- sentative or by letter at a specified time and place. Printed under the authority of His Majesty's Stationery Office by Harrison and Sons, Ltd., 44-47, St. Martin'.s Lane, W.C.2. (B 3/340) Wt. 18187—288 1500 10/22 HAS, Ltd. Gp. 3. AT J.()8 ANGELES u^^:l°""^ Research Library HD9161.G79 A5 1922b y 'l'MlMliiiilliill|lll|j||||,( L 009 530 906 8 This booK is DUE on the last date stamped below ^^X '^T 2 0196^ DEC4 OEMCO LIBRARY SUPPLIES 1 14 SMtb Carroll Street . Madison, Wisconsin