§ Mr. DENMANasked the President of the Board of Trade if His Majesty's Trade Commissioner in South Africa endeavours, by the circulation of information and samples, to put the home manufacturer in direct touch with the up-country storekeepers; and, if so, whether steps are taken to prevent injury to the large importing houses, who have hitherto supported these store-keepers?
Mr. BUXTONThe statement to which my hon. Friend refers respecting the policy pursued by His Majesty's Trade Commissioner for South Africa is presumably based on certain evidence which appears to have been given before the Dominions Royal Commission. It is, however, based on a misapprehension. I have received a statement from Sir R. Sothern Holland on the subject in the course of which he makes the following observations:—"It has been with the object of maintaining the confidence and support of prominent business men, both in Great Britain and in South Africa, that I have gone out of my way, on every possible occasion, to make clear my determination to respect established interests in so far as this attitude is compatible with the legitimate advancement of British trade,per se. Apart from the definite principle which guides me in this policy, it would be a futile ambition for any individual in my position to attempt to carry out, without injury to British trade, so revolutionary a policy as that attributed to me. The actual position is the reverse of that represented, and I can only assume that the gentleman who gave the evidence has been misinformed on the subject. If any specific case in support of his statement can be brought forward, I shall welcome the opportunity of meeting it, but if he has simply given expression to a belief which has gained currency unsupported by facts, I am sure he will not hesitate to correct the erroneous impression which must naturally result from the evidence before the Royal Commission of a man in his position. I say deliberately that I have never missed an opportunity of emphasising the importance to manufacturers of working through 1424W wholesale merchants in this country. True, I emphasise, in and out of season, the importance of manufacturers establishing direct representation in the South African market, not, however, with the object of going past the local merchant (which is the charge), but simply to ensure their having some responsible agent in the market, whose interest and duty it is to create a demand for their goods. Every manufacturer so counselled by me will be aware of my warning that their agents must confine their orders to wholesalers, and not attempt the dual operation of doing business with such firms, and then to set about robbing their best customers by going direct to the 'supported' retail shops. Such a practice has its own punishment, namely, that the wholesale merchant at once cuts the manufacturer so engaged off his books if the exigencies of trade enable him to do so. If it had been stated that certain 'supported' firms are gradually growing sufficiently strong financially to place their orders direct with manufacturers, I would have had nothing to say, because that position is not unknown in the South African market, and it is an evolution to which no one can reasonably object."