Extract from letter from Mr Pearson to Mr Martineau (Dated 25th May 1904)
(2)
Please give me your opinion on another point. France or any other Convention Country imports bounty-fed sugar from Argentina, this sugar pays the proper countervailing duty and is then refined and re-exported to England. Does the fact of the countervailing duty having been paid on it whitewash it and is England bound to accept it as French sugar?
I put the French case as a supposed instance, but the question has really been raised in Hong Kong.
French Indo-China prohibits not only all bounty-fed sugar but all sugar from non-Conventional countries (certain Chinese sugars excepted). Do you agree,
A. That raw Chinese sugar (which is not bounty-fed) refined in Hong Kong can claim admittance in Indo-China as Hong Kong sugar under Article V. I think myself (and Bergne agrees) that there is no doubt about this.
B. That if Hong Kong were to impose the proper countervailing duties on all bounty-fed sugar, i.e., such as the Commission declares to be bounty-fed, this would whitewash it and that Hong Kong could then claim to have all its sugar admitted into Indo-China as Hong Kong sugar at the lowest rate of duty?
I should be very grateful if you would return the enclosed and my letter with your answer. I am also writing to Pittar.