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Madagascar News Forums The Transformation of Antananarivo Reply To: The Transformation of Antananarivo

#557
Madagascar
Keymaster

Two opinions published in the Official Journal of Madagascar of
7 April 1951, provide importers with quotas totaling 457 000 000 metropolitan francs for the import of cotton fabrics. These additional credits are in addition to the quotas normally provided for under the various trade agreements. Since January 1950, these amount to 666,490,000 metropolitan francs for cotton goods.
The new allocation, almost equal to the total appropriations provided for in the agreements, between ‘in the context of so-called shock imports intended to affect the cost of living by the mass introduction of goods at a lower price than those Provided by the Metropole “(economic chronicler of the Bulletin of Madagascar, May 16, 1951). It is, therefore, similar to that notified in January 1950, but much larger, ie 457,000,000 for
Cotton fabrics. In addition,
103,000,000 metropolitan francs for various sectors such as clothing, footwear, textiles, household goods, tools, tires, sewing machines, and 450 tons of condensed milk. In all, 610 000 000 against 409 000 000 metropolitan francs for the previous financial year.
“Despite the rise in prices since then, the advantage is appreciable because, for cotton goods, we benefit from 487 million francs metropolitan francs against 225 million francs in 1950.” This is due to the fact that during This last year, Madagascar does not yet benefit from the liberalization of trade applied in France and other overseas territories. This, owing to the suspension since 1943, of customs duties on entry into the Territory. In return, larger credits are allocated to the island.
Moreover, this measure is made more efficient because it is planned to grant 360,000,000 metropolitan francs to Madagascar in the form of global quotas. For this credit, imports may be made indifferently from one of the countries belonging to the Organization for European Economic Co-operation.
Austria, Denmark, Great Britain, Greece, the Irish Free State, Iceland, Italy, Norway, the Netherlands, Portugal, Sweden, Switzerland, the Belgo-Luxembourg Union, ‘Added other European countries like Cyprus, Gibraltar, Malta and Trieste. There are also Asian States (Arabia, Bahrain, Kuwait), Hong Kong, Malaysia and other British territories, the Netherlands Indies and the Portuguese Territories. On the African continent, we can mention the Belgian Territories, British East Africa (Kenya, Uganda, Tanganyika), Zanzibar, Mauritius, Seychelles, the Portuguese Territories, Mozambique and the Italian Territories. On the American continent: the Dutch Territories, the British Territories. And finally the British Territories of Oceania.

According to the economic chronicler, the new measures taken to introduce global quotas suggest that the provisioning of the Territory can not, except in new circumstances, become precarious, especially in basic necessities. “All the more so because, in many countries, a wider grouping of import entries was planned, at least at the end of the agreement. “
“These new horizons must compensate for the disappearance of the Marshall Plan for procurement, practically carried out since the end of 1949, while in the field of equipment, the Marshall dollars are relayed by regular program dollars, Europe, Germany in particular, and EFAC dollars (the creation of the EFAC accounts having since August 1950 increased the percentage of the proceeds of their sales which may benefit the exporters for various purchases of goods in the dollar zone). “
Nevertheless, the author also notes that the possibilities of imports are conditioned for certain products by the scarcity of offers from supplier countries. The introduction of “global quotas” to expand can certainly overcome to some extent this new difficulty, but it is still difficult to obtain cotton offers on Hindustan. This country has difficulties in supplying fiber because of tension between its government and that of its supplier, Pakistan. A similar situation arises for Portugal. “These two countries were the ones with the lowest cotton prices on the world market. “
Finally, the relations envisaged with the neighboring countries of Madagascar, the Union of South Africa and Kenya, in particular, will make it possible to give the island a closer supply and less expensive freight for several important commodities at the same time Than new export opportunities. “A trial in this area has been tried with butter and has made it possible, to the satisfaction of all consumers, to offer a quality product at a lower price for retail.”