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Should England denounce the Convention, it would nevertheless be desirable that she should to a certain degree.remain a party to it (sic). That would oblige her to prevent the Crown Colonies giving bounties, would ensure the equal treat- ment of cane and beet sugar, and the import of German sugar into the United Kingdom at the lowest rate of duty. The English denunciation can hardly be fol- lowed by the reintroduction of the old system of bounties; the recollection of the mischief produced by this system is still too recent, and Germany, moreover, is not in a financial position which will admit of her paying bounties. The Commis- sion which meets this month in Brussels can discuss the matter but cannot take a decision. The Government do not seem to have as yet made up their minds about it. They must first consult the interested parties who, on their side, must consider the results of the current campaign and the outlook of the coming one.

The Kolnische Volkszeitung," a leading organ of the Centre, criticizes this article very sharply and expresses the hope that it was not (as was very possibly the case) "inspired." If Germany is going to do what England wishes in the matter, it is a poor look-out for the German sugar industry, which is to be heard but not listened to. Is it so certain that France will not reintroduce bounties? She was unwilling enough to abolish them, and should she revive them the German Govern- ment should either do the same or take measures for increasing consumption in the country.

Both courses will entail a burden on Imperial finance, and German agriculture will be left to pay the bill.

The article concludes gleefully that here are fresh difficulties for the "Block” which supports the Government.

Sir Edward Grey, Bart.,

&c., &c., &c.

I have, &c.,

J. DE SALIS.

TRANSLATION of Paragraph in the "Kölnische Zeitung," of July 13, 1907. The l'ermanent Committee of the "Deutsche Landwirtschaftsrat" (German Agricultural Council) resolved in Schwerin (Mecklenburg) to propose to the Imperial Chancellor that, if England denounces the Brussels Convention, Germany should do the same. The Committee considers that it is not in the interest of the sugar industry and agriculture in Germany to grant England the exceptional permission of importing bounty-fed sugar free of duty. The Committee, however, will have special proposals to make, should the question be discussed of making any changes in the Convention. The Agricultural Council again requests the Imperial Chan- cellor to cause the reduction of the tax on sugar from 14 to 10 marks. The neces- sity of this reduction would be still further increased by a dissolution of the Brussels Convention.

Attached to 26673

SIR,

Annexure to No. 75.

SIR EDWARD GREY to SIR E. GOSCHEN (VIENNA).

(No. 25. Commercial.)

Foreign Office, July 22, 1907.

I HAVE received Your Excellency's despatch, No. 37, of the 11th instant,* reporting a conversation with Baron d'Aehrenthal respecting the proposals made by His Majesty's Government with regard to the Sugar Convention.

I observe that the Austrian Minister for Foreign Affairs stated to you that the action of His Majesty's Government had placed the Austrian Government in a very disagreeable position, and had, among other things, “complicated their negotiations with Hungary at a very critical moment."

I request that Your Excellency will endeavour to furnish an explanation of this latter statement.

I am, &c.,

E. GREY.

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SIR,

59

No. 76.

SIR H. G. BERGNE to SIR E. GREY.

[Published

as No. 1 in

Brussels, July 27, 1907. THE Permanent Commission established at Brussels under the Sugar Bounties [Cd. 3780),

October, Convention met in Special Session on the 25th instant, the object of the meeting being to consider the suggestion of His Majesty's Government to the effect that if 1907.] Great Britain could be relieved from the obligation to enforce the Penal Provisions of the Convention they would be prepared not to give notice on the 1st of September next of their intention to withdraw on the 1st September, 1908, a notice which they would otherwise feel bound to give at the appointed time.

At this meeting a very general desire was expressed that, in these circum- stances, arrangements should, if possible, be made which would permit Great Britain to remain a party to the Sugar Convention. After a somewhat prolonged discussion lasting over three days the Project of Protocol, which is annexed to this despatch as Enclosure 1, was drawn up for submission to the respective Governments, on the understanding that if accepted by them it should be signed before the 1st of September next by their Diplomatic Representatives at Brussels.

As it will be necessary for this Instrument, if accepted and signed, to be submitted for the approval of the Parliament in several of the Contracting States, a further delay was stipulated in order to enable this necessary formality to be completed, and it was agreed that the ratifications must be deposited at Brussels at the latest by the 1st of February, 1908. Provision has been made in the Protocole de Signature annexed to the Project of Protocol to enable His Majesty's Government, in case the necessary ratifications have not been deposited by the date prescribed, to give, on or before the 1st of March, 1908, notice of withdrawal from the Conven- tion, to take effect on the 1st of September, 1908. If, therefore, the Project of Protocol recommended by the Permanent Commission should be duly accepted and signed before the 1st September next, it will not be necessary for His Majesty's Government to give notice of withdrawal by that date.

I should mention that as regards the certificate for refined sugar alluded to in Article 2 of the Project of Protocol, the form shown in Enclosure 2 to the present despatch has been unanimously accepted by the Commission, on the understanding that the form cannot be varied without the consent of His Majesty's Government.

In regard to sugared products, I stated clearly and definitely that Great Britain could not undertake to furnish certificates of origin. No doubt can therefore subsist as to the intentions of His Majesty's Government upon this point.

The Project of Protocol will very shortly be communicated by the Permanent Bureau to His Majesty's Government with a request that they will state as soon as possible whether they accept it and are prepared to instruct His Majesty's Minister at Brussels to sign it at the proper time. I venture very respectfully to suggest that His Majesty's Government should intimate their intentions in this respect to the Belgian Government with as little delay as possible.

I cannot close this despatch without alluding to the extreme tact and courtesy with which Monsieur Léon Capelle presided over this somewhat critical meeting of the Commission, the labours of which were greatly facilitated by his judgment and experience.

The Right Honourable

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

&c.,

&c.,

&c.

Enclosure 1 in No. 76.

I have, &c.,

H. G. BERGNE.

27 juillet 1907.

PROJET d'acte additionnel à la Convention du 5 mars 1902 relative au régime des sucres.

[The draft was in identical terms with the Act as signed.]

* Enclosure 1 in No. 75.

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