THE recent announcement of the Government of India regarding the levy of an export duty of 15 percent on Indian hides with a rebate of 10 percent to importers in other parts of the Empire, has been opposed and strongly criticised by the Indian Press. The Bombay Chronicle calls it, “an out and out acceptance of the policy of preferential tariffs” and asks a number of suggestive questions:--“Will the system be applied to imports? Shall we be called upon to impose a duty, say 15 percent, upon the imports of cotton cloth and grant a full or partial exemption to Lancashire goods? How will India benefit in that case? Will the result not be to transfer some of our existing and potential industries to the United Kingdom without any appreciable advantage to this country? What will be the attitude of foreign countries in response to the adoption of preferences against them, and, in particular, of Allied countries? Will they retaliate?” All these are pertinent questions and have to be answered by those who support the new policy.
