49

MONSIEUR LE MINISTRE:

The Hague, July 11, 1907. THE Netherland Government will doubtless have been apprised by the Belgian Minister to this Court of the decision taken by His Majesty's Government in regard to the enforcement of the penal provisions of the Sugar Convention, and of the considerations which influenced that decision. Your Excellency will have learned from the communication of the Belgian Government that His Majesty's Government are prepared to withdraw completely from the Convention, if it is held by the Contracting States that the British attitude necessitates such withdrawal. His Majesty's Government have, however, suggested that the Contracting States may prefer by a Supplementary Protocol to exempt the United Kingdom from the obliga- tion to enforce the penal provisions of the Convention.

I have now been directed by His Majesty's Principal Secretary of State to enquire whether the Netherland Government agree in principle to the course pro- posed by His Majesty's Government in regard to this question."

Son Excellence

le Jonkheer van Tets van Goudriaan,

&c.,

&c.,

&c.

Enclosure 3-in No. 67.

(No. 105. Commercial.)

SIR,

I avail, &c.,

HENRY HOWARD.

Rome, July 11, 1907.

I HAVE the honour to report that, in obedience to your instructions, I asked the Secretary-General of the Consulta to-day if the Italian Government agreed in principle to the course which His Majesty's Government have proposed in regard to the Sugar Convention.

Signor Malvano said that he was not in a position to give me a reply at present: the despatch on the subject communicated by the Belgian Government had been referred for examination of the question to the Ministry of Finance, which had not vet pronounced an opinion on it.

He added that the Italian Government had suggested that the meeting of the Permanent Commission at Brussels fixed for early this month should be postponed. and I understand that the Belgian Government had now suggested the 25th instant as the date of that meeting.

I shall take an early opportunity of renewing the enquiry.

Sir E. Grey, Bart., M.P.,

&c.,

26035

&c.,

&c.

No. 68.

I have, &c.,

CHARLES DES Graz.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received July 22, 1907.)

[Austrered by No. 73.]

The Under Secretary of State for Foreign Affairs presents his compliments to the Under Secretary of State for the Colonies, and, by direction of the Secretary of State, transmits herewith copy of the under-mentioned paper for concurrence. The certificate mentioned in the instructions is being prepared by the Board of Trade and will follow.

Foreign Office,

July 22, 1907.

Name and Date.

DESCRIPTION OF ENCLOSURE.

Subject,

Instructions to the British Delegate to the forthcoming meeting of the Perin inent Commissiou. (Sent also to other Sugar Offices.)

SIR,

Enclosure in No. 68.

Foreign Office, July 24, 1907. As you are aware, His Majesty's Government have agreed to the suggestion of the Belgian Government that the British proposals respecting the Sugar Convention should be discussed at a meeting of the Sugar Commission, which will probably take place at Brussels on the 25th instant.

His Majesty's Government desire to remain parties to the Convention, provided they are freed from the penal obligations of that instrument, and in order to facili- tate the acceptance of their proposals by the Powers concerned, they are ready to make concessions respecting the issue of certificates of origin, and as regards the prolongation of the Convention for a definite term of years.

The object of these certificates would be to identify any bounty-fed sugar exported from the United Kingdom to the territories of another contracting State. I enclose herewith a form of certificate* which has been drawn up by the Board of Trade, and I consider it advisable that this form should be attached to the supple- mentary protocol to the Convention, so as to prevent any foreign State from devising hereafter a more harassing form, which it would be difficult for British traders and manufacturers to furnish.

His Majesty's Government see serious difficulties in connection with the issue of similar certificates in the case of sugared products exported from the United King- dom to the territories of a contracting State. They would prefer to leave this question untouched, but they fear that it will inevitably be raised at the meeting of the Commission. In that event you should resist the proposal, but if strong feeling should be manifested by the representatives of the participating Governments, His Majesty's Government would be prepared to give way on the point.

Any party to the Convention can withdraw therefrom by giving notice of its intention twelve months before the 1st of September, 1908, and if another State also desires to withdraw, the Belgian Government must summon a conference to consider the measures to be taken with the possible result of a complete dissolution of the Sugar Union. His Majesty's Government believe, however, that some of the other Powers concerned are anxious that the Convention should remain in force for a further fixed period, and they are, therefore, ready to agree to its duration being prolonged for a definite term of two, three, or five years, if such a concession would facilitate an agreement. They would prefer, however, that the term should be for two or three years, rather than for the longer period of five years.

His Majesty's Government are averse to the idea of a conference being summoned to discuss the British proposals. They consider that an agreement ought to be effected either as a result of the discussion by the Sugar Commission or by subsequent correspondence through the diplomatic channel. They would be ready to yield in the matter, however, if in your opinion the maintenance of this attitude would lead to a deadlock.

In view of the possibility that no arrangement will be arrived at before Septem- ber 1st next, His Majesty's Government, in giving notice on that date of their intention to withdraw from the Convention, would be willing, if this meets with the unanimous concurrence of the other contracting States, to add a reserve to the effect that if an agreement is reached before September 1st, 1908, their declaration of withdrawal shall not take effect. It would be greatly to the convenience of all concerned if the question were in any case definitely settled before March 1st, 1908, that is six months before the withdrawal of His Majesty's Government would take effect.

28570

See enclosure 2 in No. 76.

G

PUBLIC

RECORD OFFICE

Reference :-

C.O.885

18 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

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