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COPY.

BRITISH TICE CONSULATE.

Sourabaya, 5th June 1916.

447

Dear Mr. Beckett,

I have had some correspondence with Mr. McLean

regarding sugars bought by Blacklisted firms.

No doubt you are aware that Samarang as regards the sugar bazaar is perhaps more important than Surabaya at present owing to the presence there of rich influential & speculative Chinese dealers.

McLean reports that the position is most

unsatisfactory & that unless some definite action is taken soon B & S. & other enemy firms will doubtless buy more 1917 sugars on which they may make money for the benefit

of Germany as they did in 1915 & are doing in 1916.

He says that brokers tell him that Chinese simply laugh at the

warnings regarding "infected sugar" & while millowners are not anxious to sell to blacklisted firms they will not refrain from accepting a tempting bid unless some definite

£ official announcement is made.

He suggests that an official amouncment should be made, preferably in the papers to the effect that infected sugars from the 1917 crop will not be lifted

by British steaners nor allowed to enter British (or Allied)

ports. At his request I lace the matter before you & would emphasize the importance of early action being

taken.

I have visited Mr. Veldhuyzen's opinion on the subject & from enclosed translation of his letter to me you will observe that he also is very emphatic that a definite

announcement should be made.

If you do not feel that you can declare the

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