MOZAMBIQUE - Page 9.
Every year Mozambique suffers a trade deficit.  Commercial
and plantation interests feel they are treated unfairly since
prices of their export commodities are officially kept below the
world price levels while imports are protected in order to maintain the market of manufacturers in Metropolitan Portugal.  Such
government policies contribute greatly to the formation of a
group of v/hite settlers who want home rule for Mozambique.  (For
the Export-Import figures, see Table I below.)
One cornerstone of Portuguese policy has been for years the
economic integration of the overseas territories.  During 1961
and 1962 legislation was enacted that would establish a common
market and strengthen the colonial relationship by large-scale
settlement of some of the Territories with metropolitan populations. After August 15, 1962 tariffs were reduced on all locally
manufactured goods for the overseas territories, and goods made
in Portugal were allowed free entry into the colonies.  Other restrictions are to be of a temporary nature. Laws which were to
come into effect in March 1963 stated that obstacles to trade between the different territories v/ould be removed;  that a "unified
monetary system would be established;  a system of balance of
payments instated to facilitate the liquidation of transactions
in goods and services between the component territories and unify
the markets and programme of economic development among all the
territories.
As it was pointed out by the United Nations Special Committee
on Territories Under Portuguese Administration, these new laws
seem to be enacted obviously to strengthen the colonial relationship.  There have been few processing industries in the territories, and therefore they remain dependent on Portugal for a
major part of all imported consumer goods.
In spite of the trade deficit, Mozambique maintains a
balanced budget and even is able to contribute to development
programmes.  Beside the tourist business, two main sources of
foreign revenue come from port and railroad revenues, and the export of Mozambique's labour force, for v/hich the colonial government receives about W6.00 or £ 2. per worker for each man under
labour contracts abroad.  It has been estimated that at the end
of 1959 there were 175,752 African workers employed in the Transvaal and 218,577 in Southern Rhodesia.  The total amount of revenue received by the Mozambique Government in connection with
these workers amounted for 1959 to about ^2,200,000.  In addition
to workers abrcad under contract, there are about 100,000 workers
who leave Mozambique for surrounding territories in order to
escape the forced contract labour of the colony.  The minimum
monthly wage scale for African workers established by the Bureau
of Native Affairs in 1955 was &1,75 to &5.00 in agriculture and
&2.50 to &6.00 in industry.  In addition the employers are required to provide food, clothing, medical care and housing.
Women and children in the labour force receive no more than
half the minimum wage.