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preparation of the refined sugar covered by the certificate.

We issue our certificate because under our law no sugar may

be imported from any country which grants any direct or indirect bounty

on the production or export of sugar; whilst further our certificate

simply states that the refined sugar to be exported has been manufactur-

-ed locally from raw sugar imported from the countries mentioned in the

certificate; that this certificate can be safely issued and is accept-

-able is due to the fact of the restriction mentioned above imposed by

our law.

I do not know what is the rigorous supervision which is

exercised in Great Britain by the Customs Authorities, but I understand

that here, in Hongkong, there is no sort of supervision. When we repeal

our Sugar Convention Ordinance of 1904, of course the restriction upon the importation of bounty-fed sugar will cease and, as we have no control or supervision as they have in England over the refineries, we should no longer be in the same position as to the issue of the certificates which we have hitherto been issuing.

I am practically sure therefore that we should not be justifi- -ed in altering the language of our certificate from the form which it at present takes or in couching it in a form containing such a categoric -al statement that it is the product of a refinery in Hongkong at which the operations are carried out under the control of the Hongkong customs authorities; such a statement would not be a fact; and further I see very great difficulties now in issuing any certificate at all unless we assume some Governmental control and supervision of the

refineries.

The Superintendent of Imports and Exports points out that as a matter of fact and as matter of trade no sugar is or is very likely to be imported from any country to which objection can be taken on bounty grounds; although this is the case it is not a position which unless guarded against by law could form a sound basis upon which we could continue to issue certificates under our present form. The Superintendent of Imports and Exports suggests however that after the

repeal

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