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Dear Sir Kenneth Nakhai-
April 1905
With reference to your telephone message this forenoon which I understand to be a request for an expression of opinion on the probable effect on the local sugar industry from the contemplated prohibition of the importation of Philippine Raws. Naturally the local refiners are very reluctant to be deprived of such an important source of supply now provided by Hurt Islands from which in past years they have drawn quiet quantities of raw sugar for refining here and from which at any time in the future they may again find it convenient to do so. On the other hand it can hardly be expected by Hong Kong to advantage arising from this Colony subscribing to the Convention in the same manner to be allowed to import sugars from any costly foreign country. There is no doubt in my mind which under trusting circumstances is the true important if it comes to a choice between two great benefits, it would clearly be to stick to the Convention and Philippine Raws etc.
I fear that an allowance for Philippine Raw sugar to this Colony cannot be objected to provided they are for refining purposes only. That would suit us nicely. The only other way out of the difficulty would be to pursue the Convention, to visit this headache, or what one likes to call it by taxes on it. It seems a Philippino is theologian of an unbearable and intolerable conception, which concerns foreign countries not us all!
His Excellency
Sir Matthew Nathan K.C.M.G.
(sp?) His Excellency
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