CO885-(11-13) — Page 557

PUBLIC RECORD OFFICE

Reference :-

CO. 885

12 PUBLIC RECORD OFFICE, LONDON

ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC- COPYRIGHT PHOTOGRAPH-NOT TO

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French negotiations might be resumed immediately, and as it was very important that Her Majesty's Government should be furnished with our opinion on the questions then referred to us, your Lordship would feel much obliged if we would take them into immediate consideration, and favour your Lordship with our report thereon at our earliest convenience.

In obedience to Your Lordship's commands we have the honour to-

Report-

That we think the draft of proposed most-favoured-nation Article appended on p. 7 to the Memorandum submitted to us is sufficient (with some slight alterations) to secure to this country the benefits which it is intended to provide for.

We suggest that the word "third" should be inserted before the word "nation" in the fourth line of the draft.

In line 9, after "taxes we recommend the insertion of the words "or other impositions ;" and in line 10, after "privileges,” the words “including the acquiring, holding, and power of disposing of property."

""

We think the remainder of that (1) paragraph following the word "privileges ' should be omitted. It does not seem properly to form part of a most-favoured-nation clause, but to be an independent stipulation for an absolute exemption, nothing more than which could be granted to any nation.

In the next paragraph (line 14 of the draft) we advise the omission of the word "all" before the word "goods," and the inserting of the words " and also the insertion, after the word "goods," of the words "of whatever descrip- or in respect of;" tion and."

In the two following paragraphs, in line 28 of the draft, after the word “ words" or in respect of; and in line 33 of the draft, after the word “

on," the "or in respect of" should be inserted.

on," the words Moreover, clauses 4 and 5 of the draft should be treated as independent Articles, as they are not governed by the introductory stipulation which governs clauses 1, 2, and 3.

The case of the sugar bounties would be most satisfactorily dealt with by a stipulation relating to drawbacks similar to that inserted in the recent Treaty between France and Belgium.

If it be thought expedient so to frame the most-favoured-nation clause as to leave it within the power of this country to impose countervailing duties upon bounty-fed goods, in case, at any future time, it should be deemed expedient, as a matter of policy, to do so, a proviso might be added to the 2nd clause of the proposed most-favoured- nation Article, to the effect of the stipulation suggested on behalf of the sugar industries to the Royal Commission, which is set out at p. 4 of the printed Memorandum before us.

It would seem difficult to meet the case of the bounties on shipping satisfactorily in any other way than by an express stipulation prohibiting them. If it be deemed expedient to leave it open to this country to take hostile action in respect of shipping receiving bounties, it might be done to some extent by a proviso to clause 3 of the proposed most-favoured-nation Article that there should be no right to claim most- favoured-nation treatment in respect of vessels receiving bounties.

We concur in the view that the most-favoured-nation clause does not affect the right of this country to extend to the produce of its Colonies more favourable treatment than it accords to the produce of foreign or third countries; and that the question of admitting Colonial produce on more favourable terms than similar produce of foreign countries with which Great Britain has entered into most-favoured-nation stipulations is entirely a question of policy.

The Right Hon. the Earl Granville, K.G.,

&c.

&c.

&c.

We have, &c.

(Signed)

HENRY JAMES. FARRER HERSCHELL. J. PARKER DEANE.

-3.

Annex 1.

Form of Most-favoured-nation Article.

The High Contracting Parties guarantee to each other, in the United Kingdom of Great Britain and Ireland, and in the most-favoured third nation as regards-

the treatment of

1. Their subjects, in respect of residence, whether temporary or permanent; the exercise of any calling or profession; the payment of taxes or other impositions; and the enjoyment of all legal rights and priviliges, including the acquiring, holding, and power of disposing of property.

2. As regards commerce, in respect of customs duties and all other charges on or in respect of goods of whatever description, and whatever may be their place of origin or manufacture, and whether intended for consumption, warehousing, or re-exportation, which may be imported or exported from the one country to the other. respect to the transit of goods, prohibition of importation, exportation, or transit, Also with samples, customs formalities, and all other matters connected with commerce and trade.

[But the subjects of either Treaty Power shall not be entitled to claim the treatment of the most-favoured-nation in respect of goods exported under a system of drawback, or of certificates of exportation, which will permit. either directly or indirectly, bounties to be derived as a consequence of the Act of exportation.]

3. As regards navigation, in respect of vessels of the other Powers, whether steam or sailing, from whatever place arriving, and whatever may be the place of origin or destination of their cargoes. Also in respect of all charges or dues on or in respect of the said vessels and cargoes, and all formalities and regulations relative to them.

[Most-favoured-nation treatment shall not, however, be claimed in respect of vessels receiving bounties.]

Annex 2.

Stipulations to be embodied in separate Articles.

The subjects of the High Contracting Parties shall be exempted from military service, requisitions, and forced loans.

Any favour, privilege, or immunity in regard to subjects, commerce, or navigation, as well as any reduction of customs duties or other charges on or in respect of goods or vessels which either of the High Contracting Parties may hereafter concede to any third Power, shall be extended immediately and unconditionally to the other.

The Consular officers of the two Powers, as regards appointment, residence, functions, and privileges, shall be placed on the footing of the most-favoured nation.

Annex 3.

Stipulations in regard to Drawbacks in Treaty of October 31, 1881, between France and Belgium. Article IV.

Les drawbacks établis à l'exportation des produits Belges ne pourront être que la représentation exacte des droits d'accise ou de consommation intérieure grevant les dits produits ou les matières dont ils sont fabriqués.

De même, les drawbacks établis à l'exportation des produits Français ne pourront être que la représentation exacte des droits d'accise et de consommation intérieure grevant les dits produits ou les matières dont ils sont fabriqués.

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