industry, which has gradually created for itself a leading market in 

 the important neighbouring country of France, every step is welcome 

 which brings the two nations closer together economically. Of course 

 the future alone can show in how far the peaceful settlement of this 

 question will influence the general relations between Germany and 

 France. In any case it is to be regretted that simultaneously with 

 this settlement another problem has appeared, which must unfortunately 

 be regarded as seriously endangering the commercial relations between 

 France and Germany after having been built up with so much trouble. 

 We refer to the new French Customs Tariff, in which it is proposed 

 materially to increase the Customs duties upon almost all articles in our 

 branch of business. Great Britain has already protested sharply against 

 the proposals of the French Customs Commission which are obnoxious 

 to trade, and we trust that in case no means should be available of 

 taking action against the proposals by diplomatic proceedings, the 

 Comite Commercial Franco - Allemand in Paris will at any rate do its 

 utmost to prevent the French Protectionists from being victorious. 

 It can certainly not be maintained that under the protection of her 

 Customs Tariff France has undergone a particularly remarkable industrial 

 development, for it can be proved without doubt that so far as capacity 

 of output is concerned, French industry is very far behind that of 

 Germany and England. The trade between France and Germany 

 has of course suffered during the past year as a result of the general 

 depression. According to the Documents statistiques sur le Commerce de 

 France, it reached the following figures (in iooo fr.): — 



1908 1907 



Imports Exports Imports Exports 



626340 640876 638157 649693 



Referring to the new French Pharmacopoeia discussed in our last 

 Report, we may here mention that by Decree of the French Govern- 

 ment dated 17 th October 1908, a period of transition of 8 months — 

 that is to say up to May 15 th 1909 — has been fixed, at the end 

 of which all medicinal preparations used in France must comply with 

 the new conditions. 



In Spain, the condition of affairs in those branches of business 

 in which our articles are employed, continues to be by no means 

 satisfactory, notwithstanding that the proposals for the spirit tax 

 reform have in the meantime come into force. The Spirit Bill which 

 was enacted many years ago by Osma and the provisions of 

 which have had far-reaching consequences, has at last been replaced, 

 on the 10 th December 1908, by a new Act. This measure possesses 

 certain improvements upon its predecessor, but most of the old dis- 

 advantages have been retained, and several important new ones have 



