1436 THE HONGKONG GOVERNMENT GAZETTE, NOVEMBER 22, 1907.

No. 766.

CIRCULAR.

DOWNING STREET,

9th October, 1907.

SIR,-With reference to my Circular Despatch of the 2nd of July, I have the honour to transmit to you, for your information, the accompanying copies of a Report by Sir HENRY BERGNE, K.C.B., K.C.M.G., of the Proceedings of the Permanent International Sugar Commission at its recent meeting, which was held to consider the proposals of His Majesty's Government with regard to the Brussels Sugar Convention.

2. Those proposals were accepted by the Commission; the Additional Act to the Brussels Sugar Convention which was agreed to by the Commission for giving effect to them has since received the approval of His Majesty's Government and of the Governments of the other Contracting States; and the Additional Act, together with an accompanying Declaration, copies of which are enclosed, has been signed by the Diplomatic Representatives of the contracting States at Brussels, subject to subsequent ratification on the part of the signatory Powers who are full parties to the Convention.

3. With regard to this Act it is to be observed that, although under the new arrange- ment the United Kingdom, in accordance with the principle upon which His Majesty's Government felt bound to insist, will be dispensed from the obligation to prohibit or countervail bounty-fed sugar, such dispensation will not probably affect the trade of the British Colonies, since the only bounty-giving country which exports sugar to any appreci able extent is Russia, and the total amount of such sugar is small compared with the total sugar production of the world, while it is further contemplated that Russia may become a party to the Convention, on which subject the Russian Government has submitted proposals for the consideration of the Governments of the contracting States.

4. On the other hand, it will be seen that under the Additional Act the Convention is to be renewed for a further term of five years from the 1st of September, 1908 (instead of being continued merely from year to year under Article X. of the Convention), subject only to its possible discontinuance at the end of three years, under the provisions of Article I. of the Additional Act, an eventuality, however, which is hardly likely to occur in view of its requiring the assent of a majority of the Commission.

I have, etc.,

The Officer Administering the Government of

HONGKONG.

ELGIN.

Enclosure 1 in Circular Despatch of October 9, 1907.

SIR H. G. BERGNE to SIR E. GREY.

BRUSSELS, July 27, 1907.

SIR,―The Permanent Commission established at Brussels under the Sugar Bounties Convention met in Special Session on the 25th instant, the object of the meeting being to consider the suggestion of His Majesty's Government to the effect that if Great Britain could be relieved from the obligation to enforce the Penal Provisions of the Convention they would be prepared not to give notice on the 1st of September next of their intention to withdraw on the 1st September, 1908, a notice which they would otherwise feel bound to give at the appointed time.

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