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West Indies, the effect of the present uncertainty as to the continuance of the Convention, and as to the probable effect of its discontinuance.

In view of the special circumstances of the Conference, of the recent decision to continue the grant to the Imperial Department of Agriculture, and of the public attention which is now drawn to the work of that Department, and to the operation of the Sugar Convention, it may possibly be advisable to lay the forthcoming number of the "Bulletin" before Parliament. Lord Elgin, therefore, desires to have an early opportunity for perusing the Committee's report and other papers of interest, and would be glad to learn when copies of the "Bulletin " containing them may be expected.

I am, &c.,

C. P. LUCAS.

17

20th instant was stated to be 2,296,500 tons, and you correct this statement and give the right figures, 4,296,500. This is a striking difference, and changes the complexion of the effects of the Brussels Convention very materially. I was greatly surprised at first on reading your article to observe such an enormous increase in the cane sugar crop since the Brussels Convention was learned from reliable information ratified. I doubt very much that there is any increase. coming directly from a gentleman who has large estates in the West Indies and cultivates cune sugar that many planters are giving up the cultivation of cane sugar, as from long experience they find it not only unprofitable, but as ruinous. This planter I refer to has given up cane sugar and turned his attention to the cultivation of bananas; and many other planters are trying various products and giving up the cultivation of cane sugar. This planter was at first in favour of the Brussels Convention, but is now convinced it has had no effect in furthering the cultivation of cane sugar in the West Indies, or in furthering the prosperity of the West Indies. I am not personally interested in the sugar trade, but only desire to state what I believe is

true.

I am, &c.,

AN OBSERVER.

9131

No. 20.

། ། ། 「 །

PUBLIC RECORD OFFICE

ول

FOREIGN OFFICE to BOARD OF TRADE. [Communicated by the Foreign Office, March 12, 1907.]

Foreign Office, February 25, 1907.

SIR,

I AM directed by Secretary Sir E. Grey to acknowledge the receipt of your letter of the 13th instant,* respecting the policy to be pursued by His Majesty's Government with regard to the Sugar Convention. I am to state that Sir E. Grey concurs in the views therein expressed by the Board of Trade on the subject, namely, that there would be considerable advantage in endeavouring to negotiate some arrangement by which Great Britain would remain a party to the Convention with- out being subject to the provisions of the penal clause. The question has now reached a stage when it should be submitted to His Majesty's Government for decision, and I am accordingly to suggest that Mr. Lloyd-George should bring the matter before the Cabinet at the first opportune moment.

I am, &c.,

Attached to 7063

DEAR SIR,

No. 21.

MR. R. HARVEY to COLONIAL OFFICE.

E. GORST.

Glasgow, February 26, 1907.

Scotland Street Engine Works,

BRUSSELS SUGAR CONVENTION.

FOLLOWING my letter of 22nd instant,† enclosing a leading article on the Brussels Sugar Convention, I herewith enclose a letter from the same paper from "An Observer" criticising the same, also a letter from our firm in reply, which no doubt may interest you.

Yours, &c.,

ROBERT HARVEY.

Enclosure 1 in No. 21.

C. P. Lucas, Esq.,

Colonial Office.

February 21, 1907.

"GLASGOW HERALD."

THE SUGAR CONVENTION.

(To the Editor of the "Glasgow Herald.")

SIR,-I observe a typographical error in your article on the Sugar Convention of yesterday's date corrected in a short paragraph to-day. The crop of cane sugar in your article of

Enclosure 2 in No. 21.

THE SUGAR CONVENTION.

(To the Editor of the "Glasgow Herald.")

Scotland Street Engine Works, Glasgow, February 23, 1907. SIR, We have read with much interest your interesting leader on the Brussels Sugar Convention in your issue of the 20th instant, and also the critical letter in to-day's "Herald" from "Observer."

As a practical proof that your statement is correct as regards the marked improvement in the sugar machinery industry, which is one of the specialities of Glasgow, we may inform you that for about ten years before the Sugar Convention we do not know of one single order being placed in this country for one complete cane sugar factory, which was in marked contrast to the experience of sugar machinery engineers in France and Germany, who all these years were working night and day erecting new beetroot sugar factories, which were being encouraged and paying a good dividend due to the Government granting bounties and allowing cartels owing to the high import duty placed on sugar in these countries. Since the abolition of these sugar bounties and cartels by the Brussels Sugar Convention, which gave cane sugar nearly equal terms with beetroot sugar-and so we have fair trade, which is genuine free trade, in sugar cane sugar has rapidly recovered. As a striking proof of this, we have received during the last five years orders for twelve complete new central cane sugar factories from various parts of the world, and, no doubt, other sugar engineering firms all over the country have also benefited, thus giving additional employment to a number of workmen. Still cheap sugar remains, and naturally so, as the increased production of cane sugar is now added to the beetroot sugar crop, and must find a market.

The opinion of an "Observer" of the British West Indies is of little value, as in the islands of Cuba and Porto Rico, also in the West Indies, the cane sugar industry has been increasing by leaps and bounds, and many large new central factories have been, and are being, and up, erected in these islands. However, the British West Indies are beginning to wake one complete new central factory has been erected in the island of Antigua, and another is now being erected in the island of Jamaica, the machinery for these two factories being made in Glasgow.

Observer" is correct as to the West Indian planter giving up cane sugar and going in for fruit, but the reason for this no doubt is that he has not the capital to erect modern As a proof that plant, without which sugar cannot at the present low price be made to pay. cane sugar can be made to pay we may state that during the last four years we have constructed two complete new central factories for the same proprietors, and have now in hand a third and a much larger central factory for the same owners, which is ample proof that, with improved machinery, cane sugar is a paying industry. It is also well known to sugar experts that cane sugar is now being produced in some sugar-growing countries at from £1 to £2 per ton cheaper than it is possible to produce beetroot sugar.

In a discussion of this kind arguments by opinion or figures are useless against such facts as we have now stated.

Should the present Government withdraw from the Brussels Sugar Convention it could only be for party purposes, as no doubt a number of the members of the Cabinet, as well as members of Parliament, know in their heart of hearts that the Brussels Sugar Convention is a just and fair thing, and that the withdrawal from it will in no wise benefit anyone in this country, but to a number it would be a serious loss, as well as to many of our sugar-growing Colonies. Otherwise, it may be from pressure being exerted by the confectionery and jam interests, with the idea of again purchasing their raw material below the cost at which sugar can be produced. If by this means they succeeded in again curtailing the sugar cane industry they themselves would be the ultimate sufferers.

We are, &c.,

HARVEY ENGINEERING COMPANY (LIMITED), GLASGOW.

• No. 16.

† No. 18.

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