CO882-6 — Page 469

PUBLIC RECORD

OFFICE

Reference :-

TLC.O. 882

6

PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-

COPYRIGHT PHOTOGRAPH-NOT TO

17736

SIR,

(No. 160.)

8

No. 14.

ACTING-GOVERNOR MAY to MR. LYTTELTON.

(Received May 19, 1904.)

[Answered by Nos. 15 and 25]

Government House, Hong Kong, April 16, 1904. WITH reference to your telegram of the 13th instant, and to previous corre- spondence on the subject of the Sugar Convention, I have the honour to transmit for your consideration the enclosed copy of a Bill which has been read a first time in the Legislative Council, together with a copy of the regulations which it is proposed to make after the Bill becomes law.

2. You will observe that it is proposed to adopt the Convention in its entirety as being more advantageous to the sugar interests of this Colony than if the law were made so as to exclude Article IV. of the Convention.

3. This resolution was arrived at on the understanding here, that unless Article IV. were included, all sugar exported from Hong Kong to a Convention country would be liable to a sur-tax whether the original cane or beet imported for refining purposes came from a bounty-giving country or not.

4. It has now been suggested that an additional regulation might be made providing for the refund of the special duty to be levied under proposed Regulation VII., in cases where such sugar is re-exported from the Colony either to a Convention or a non-Convention Country; the Certificate of Origin in the former case, of course, showing the original country of export.

5. For instance, one of the refineries, if not both, in the Colony import_raw sugar from the Argentine Republic, and they claim that a refund should be made to them of any duty imposed on such sugar in accordance with Article IV., if the sugar is re-exported in a refined state to Japan, which country has not joined the Conven- tion.

6. I attach a copy of the suggestions of the Chamber of Commerce in this con- nection, but such a regulation appears to me to be contrary to the spirit of the Con- vention, and I have therefore not included it in the regulations. If it can properly be made, however, it would materially assist the refining industry in this Colony.

7. As it is of great importance to the sugar industry in this Colony to have this matter settled as soon as possible, I shall be glad to have your opinion on the point as to whether such suggested additional regulations would be in violation of the spirit of the Convention, and would therefore request you to be so good as to answer "Yes" or "No" by telegraph at your early convenience.

8. With special reference to your telegram of the 13th instant,* I may state that I have been informed that the reason why the French Government has prohi- bited the importation of Hong Kong sugar into Indo-China is that this Government has not taken the proper steps for prohibiting or taxing sugar imported from a non- Convention country, and I would ask whether, in the event of our not legislating to give effect to Article IV. of the Convention as well as Article VIII., the French Government can be compelled to discontinue the prohibition of the import of sugar from this Colony.

Ð. As regards Article V., special legislation does not seem called for as this Colony is a free port with no import duties whatever.

10. I shall be glad to receive instructions on these points at your early con- venience as owing to the uncertainty of the effect of such legislation as is contem- plated by you I am unable to proceed in accordance with the terms of your telegram above referred to.

I have, &c.,

F. H. MAY,

Officer Administering the Government.

• No. 8.

9

Enclosure 1 in No. 14.*

A Bill entitled An Ordinance to enable effect to be given in this Colony to Article VIII. of

a. Convention signed the Fifth day of March, Nineteen hundred and two, in relation to Sugar.

Whereas His Majesty the King and divers Foreign Powers have entered into a Preamble. Convention signed the Fifth day of March Nineteen hundred and two in relation sugar; and it is expedient to give effect in-the-Colony to Article VIII. of that Convention :

to

And whereas provision is made under Article VII. of the Convention for the establishment of a permanent commission with a permanent bureau attached to it charged with watching the execution of the provisions of the Convention (in this Ordinance referred to as the Permanent Commission): And whereas by Article VIII. of the said Convention sugar exported from a British Colony shall on its importation into any of the contracting States be accompanied by a certificate of origin: And whereas it is necessary in order to comply with the requirements of the said Convention Article VIII, that steps should be taken to prevent bounty-fed sugar being imported into this Colony and re-exported to a contracting State as sugar of this Colony:

Be it enacted by the Governor of Hong Kong, with the advice and consent of the Legislative Council thereof, as follows:-

Short title.

1. This Ordinance may be cited as the Sugar Convention Ordinance, 1903. 2. Where it is reported by the Permanent Commission that any direct or in- Power direct bounty is granted in any foreign country on the production or export of the Governor may by Order in Council prohibit sugar from that foreign country being respect to

with sugar imported or brought into the Colony or may instead of such prohibition impose a bibition of spécial duty on such sugar and may by Order in Council revoke, alter or add to any bounty-fed Order in Council made under this Ordinance.

An Order made under this section shall not apply to sugar in transit.

the

pro-

sugar.

3. The Governor in Council may from time to time make such regulations as Power to

in-Council

to him may appear necessary in relation to this Ordinance, and by such regulations Governor- may in particular require the origin of all sugar imported or brought into the Colony to make whether in transit or otherwise to be proved by such certificate or other evidence as regula- in any such regulation may be provided; and may by such regulations attach penal- tions and ties not exceeding five hundred dollars to any breach of or failure to comply with impose any regulation made under the authority of this section, and provide for the recovery and application of any such penalty, and for the forfeiture of any article in respect

penalties. of which any offence against any regulation is committed.

Objects and Reasons.

This Ordinance is intended to enable this Colony to give effect to Article VIII.

of the Brussels Sugar Convention.

Enclosure 2 in No. 14. REGULATIONE. No. I.

HENRY S. BERKELEY,

Attorney-General.

All sugar (other than molasses and sugar-sweetened products) imported or brought into the Colony from any place outside the same shall be accompanied by such evidence of origin as hereinafter required; and all sugar imported or brought into the Colony not accompanied by such evidence may be forfeited and may be disposed of as the Superintendent of Imports and Exports may direct.

• The amendments suggested by the Secretary of State (so letter to the Board of Customa, May 24, 1901, No. 16) are shown by italics and obliterated type.

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