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PUBLIC RECORD

OFFICE

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Reference :-

C.O.885

18 PUBLIC RECORD OFFICE, LONDON

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In the event of the Contracting States agreeing to take the course indicated above, His Majesty's Government would be prepared to abstain for the present from giving the notice of withdrawal which they would otherwise feel it their duty to give on September 1st next.

Should the Belgian Government be willing to exert their good offices in this Lehalf, I have to point out that in view of the meeting of the Commission fixed to take place on the 6th June next, it would be desirable that communications should be addressed to the Contracting States as soon as possible.

Sir A. Hardinge, K.C.B., K.C.M.G.,

&c.,

20107

&c.,

&c.

No. 10.

CANADA.

I am, &c.,

For Sir E. Grey,

F. A. CAMPBELL.

CANADIAN MANUFACTURERS' ASSOCIATION to COLONIAL OFFICE. (Received June 6, 1907.) [See No. 13.]

20151

Toronto, May 28, 1907. [Printed as No. 20 in [Cd. 3565], July, 1907.]

No. 11.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received June 7, 1907.)

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.

Foreign Office,

June 6, 1907.

REFERENCE TO PREVIOUS LETTER :

Foreign Office, June 5.*

DESCRIPTION OF ENCLOSURE.

Name and Date.

Subject,

Sir A. Hardinge, Brussels, No. 38, June 3

Sugar Convention.

Similar letter sent to Board of Trade and Treasury.

(No. 38. Commercial.)

SIR,

Enclosure in No. 11.

Brussels, June 3, 1907.

I HAVE the honour to acknowledge the receipt of your despatch. No. 35, Commercial, of June 1st, regarding the question of the steps which it will be necessary for His Majesty's Government to take with regard to the participation

• No. 9.

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of the United Kingdom in the Sugar Convention when the date arrives on which it will be possible for any of the contracting States to give a year's notice to retire from the Convention under the provisions of Article 10 of that Instrument.

In compliance with your instructions, I have to-day addressed a communication to the Belgian Government, copy of which I have the honour to enclose, explaining the opinions and intentions of His Majesty's Government, and pointing out that in view of the early meeting of the Permanent Commission it would be desirable that communications should be addressed to the contracting States as soon as possible.

In order to further save time Mr. Wyndham called this morning upon Monsieur Capelle, the President of the Permanent Sugar Commission, and informed him of the contents of your despatch under reply. Monsieur Capelle thanked him very much for his visit, as he said that time was of much importance, and assured him that he would see that the required communications were made at once.

He said that the forthcoming Commission would not be able to give any decision upon the points raised by His Majesty's Government, which would have to be decided either by another Conference or by the Governments of the various contracting States, but that the opinions and suggestions of the technical delegates of the Commission, who would doubtless be informed in full detail of the views of His Majesty's Government by the British delegation would certainly be of value in arriving at a satisfactory solution. Mr. Wyndham expressed the hope that Monsieur Capelle would use his good offices in the discussions which might arise, to which he replied that the contemplated action of His Majesty's Government would not be in the interests of Belgium, but that as President of the Commission he would certainly do all in his power to remove difficulties and to conciliate conflicting interests.

I have, &c.,

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

&c., &c., &c.

(For Sir ARTHUR HARDINGE),

PERCY C. WYNDHAM.

Brussels, June 3, 1907. MONSIEUR LE MINISTRE,

I HAVE the honour to inform Your Excellency that His Majesty's Government have had under consideration the question of the steps which it will be necessary for them to take with regard to the participation of the United Kingdom in the Sugar Convention when the date arrives on which it will be possible for any of the contracting States to give a year's notice to retire from the Convention under the provisions of Article 10 of that instrument. In considering this matter, they have naturally felt themselves bound to give the greatest weight to the interests of British consumers and producers, but, subject to this paramount consideration, they have desired to give proper weight to the circumstances and possible wishes of the other contracting States.

His Majesty's Government have come to the definite conclusion that the limita- tion of the sources from which sugar may enter the United Kingdom, whether by prohibition or by imposition of countervailing duties, is inconsistent with their declared policy and incompatible with the interests of British consumers and sugar- using manufacturers; and that, consequently, it will be impossible for them to continue to give effect to the provisions of the Convention requiring them to penalise sugars declared by the Permanent Commission to be bounty-fed.

At the same time His Majesty's Government have no desire that there should be a revival of sugar bounties or of sugar trusts or cartels dependent on the existence of high protective tariffs which are now prohibited under the Convention. Nor is there any desire or intention on their own part, or that of the Crown Colonies to give any bounty on the production or exportation of sugar or to treat cane or colonial sugar more favourably than beet or foreign sugars on importation into their terri- tories.

The President of the Permanent Sugar Commission at Brussels having very courteously tendered to the British delegate the good offices of the Belgian Govern- ment in regard to any discussions which might take place concerning the termina- tion or prolongation of the Convention, I have been instructed to bring the foregoing considerations to the notice of Your Excellency with a view to their communication to the Governments of the contracting States.

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