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The Customs suggest as the simplest courses to adopt either
(a)
For Hong Kong to adhere to the Convention
or
(b)
The prohibition of all bounty-fed sugar. The objections to (a) are (1) that it would entail placing the Hong Kong Refineries in bond, and (2) That it might raise the question as to whether the freedom of fiscal relations as between the United Kingdom and the Colonies includes freedom of fiscal relations as between the Colonies themselves; e.g. whether if Hong Kong adhered to the Convention, it would be bound to penalise Australian or Natal sugar should any such sugar go to Hong Kong. This question has already been carefully considered, both as regards the Crown Colonies and India, and up to now it has been our policy not to let the Crown Colonies join the Convention, while the India Office have promised to consult us before any steps are taken for the adherence of India. This latter contingency is, however, now very improbable.
As regards (b) if what the Officer Administering the Government states in 1898 is correct (which, however, I doubt) it would appear that
(1) No sugar is imported from any bounty-giving British Colony.
(2) No sugar is imported from any country which the Permanent Commission has as yet decided gives bounties.
(3) No sugar is exported from Hong Kong to any contracting Country.
Prohibition would therefore seem the best course
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MAP.