Sir,
Hongkong, 28th April, 1904.
In reply to your letter of 28th April, 1904 No.8873, I have the honour to inform you that the Convention of Brussels with Protocol dated 5th March, 1902 are in force within Netherlands-India.
Article 4 of the said Convention prescribes that on all sugars exported from countries, who grant any bounties or premiums on production or exportation of sugar, a special (countervailing) duty must be levied on importation into the countries of the High Contracting Parties and these engaged themselves by article 8 to take measures in order to prevent that bounty-fed sugars, which are transported (in transit) over the territory of one of the contracting Parties or of their colonies, enjoy the profits of this convention on the market of destination.
So far as I can see from the text of the Brussels Convention, the contracting Parties did not engage themselves to prohibit the importation of bounty-fed sugars, but only to levy countervailing duties which must at least be equal to the direct or indirect premium (bounty) which was granted in the country of production.
The import of bounty-fed sugar is therefore not prohibited in Netherlands-India, but countervailing duties are levied.
The annual export of sugar from Java is about 800,000,000 kilograms and the import of sugar is next to nothing.
I have &c.
The Honourable
The Colonial Secretary.
Droeze.