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Enclosure 1 in No. 66.

MONSIEUR LE SECRÉTAIRE D'ETAT :

Londres, le 15 Juillet, 1907. COMME Suite à mes communications de même nature, et en dernier lieu à celle du 9 de ce mois, j'ai été chargé d'avoir l'honneur de faire savoir à Votre Excellence que les propositions formulées par le Gouvernement belge au sujet d'une réunion prochaine de la Commission permanente des sucres ont rencontré l'adhésion des Gouvernements péruvien et suédois.

Son Excellence

SIR,

Sir Edward Grey, Bart., M.P.,

&c.,

&c..

&c.

Enclosure 2 in No. 66.

Je saisis, &c.,

LALAING.

3, Oxford Court, Cannon Street, London, E.C., July 15, 1907.

I AM instructed by the Executive Committee of the Manufacturing Confec- tioners' Alliance to express its thanks to His Majesty's Government for the action that it has taken with regard to the Brussels Sugar Convention. Manufacturing confectioners have been unanimously opposed to the Convention from the first, being convinced that the limitation of supplies seriously prejudiced their business, and they are pleased to think that thirteen months hence, whatever happens, the penal clauses will no longer be enforced.

At the same time difficult questions may arise in connexion with which the opinion of an expert trader might be useful, and if it would be of any assistance to the British delegate or others instructed by you, Sir, to attend the meeting of the Commission, my Committee would be pleased to depute one or more of its members to be also in attendance at Brussels in case of need.

I am, &c.,

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

&c.,

&c.,

&c.

R. M. LEONARD.

1

SIR,

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Enclosure 1 in No. 67.

(No. 191. Commercial. Confidential.)

Paris, July 10, 1907. THE President of the Council spoke to me yesterday and the Minister for Foreign Affairs spoke to me to-day on the subject of the communication made to the French Government by His Majesty's Government to the effect that England, if she is to continue to be a party to the Sugar Convention, must be released from the obligation under it to put countervailing duties on bounty-fed sugar. The observa- tions made to me by Monsieur Pichon were to the same purport though in less detail than those of Monsieur Clemenceau. I have the honour to report what the latter said to me, which was that the Austro-Hungarian Government were, at the instance of Germany, endeavouring to form a conbination, which would comprise Germany, Austria-Ilungary, Italy, and possibly Russia also, to exclude from those States English sugar products. The ostensible object of the proposed combination would be economic, viz., to counteract the effect of England ceasing to charge countervailing duties on bounty-fed sugar, but the real aim of the Austro-Hungarian Government was a political one, viz., to assist Germany in an endeavour to detach France from England. The Austro-Hungarian and German Ambassadors at Paris were in com- munication with certain French Deputies with the view of getting up an agitation in favour of French co-operation in the combination. Unless the Russian Govern- ment could be persuaded to adhere to the Sugar Convention Russian sugar, which at present was bounty-fed, would enter England at an advantage over French sugar, for public opinion would not allow of the bounty system being revived in France. The consequence would be great discontent in the north-the sugar-producing country, and the French Government, though most unwilling to do so, might be obliged to join in the combination. It would be economic in name, but its effect would be political and greatly to the detriment of the relations between France and England.

I have, &c.,

Sir Edward Grey, Bart, M.P.,

&c., &c.,

&c.

Enclosure 2 in No. 67.

FRANCIS BERTIE.

PUBLIC RECORD OFFICE

Reference :-

TLC.O.8

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885

18 PUBLIC RECORD OFFICE, LONDON

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

25558

No. 67.

FOREIGN OFFICE to COLONIAL OFFICE.

(Received July 19, 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,

July 18, 1907.

DESCRIPTION OF ENCLOSures.

Name and Date.

Subject.

Sir F. Bertie (Paris) No. 191 Commercial, July 10

Sir H. Howard (The Hague) No. 86 Commercial,

July 11.

Mr. Des Graz (Rome) No. 105 Commercial,

July 11.

Sugar Convention.

(Copy also sent to Board of Trade, India Office, and Treasury).

SIR,

(No. 86. Commercial.)

The Hague, July 11, 1907. WITH reference to your telegram, No. 1 of this series, of last evening, I have the honour to transmit herewith a copy of a Note which I have this day addressed to the Netherland Government enquiring whether they agree in principle to the course proposed by His Majesty's Government in regard to the Sugar Convention.

I handed this Note personally to Monsieur van Tets, who, after reading the same, stated that I might inform you, that while regretting the decision which His Majesty's Government have felt themselves bound to take in this matter, the Nether- land Government are conferring with the other Contracting States so as to devise an arrangement by which the United Kingdom, while still remaining a party to the Convention, may be exempted from the obligation to enforce the penal provisions of that instrument.

His Excellency added that such an arrangement may, however, not be arrived at before the 1st of September, 1907, and he therefore submitted, for the considera- tion of His Majesty's Government, the following suggestion which had been made by the German Government and of which he approved, viz. :———

That when the date arrives on which His Majesty's Government have to give a year's notice to retire from the Convention, they shall give that notice, with the reservation, that should the above-named contemplated arrangement be arrived at by the other Contracting States before the said

year has elapsed, the notice is to be considered as null and void.

I have, &c.,

HENRY HOWARD.

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

&c.,

&c.,

&c.

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