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PUBLIC RECORD OFFICE

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C.O.88

18 PUBLIC RECORD OFFICE, LONDON

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and give certificates that sugar refined in England and exported to Contracting States had not been produced from bountied sugar, gave evident satisfaction.

In regard, however, to sugared products, I was strongly pressed by the German, Hungarian and especially by the Swiss delegate that certificates should be given to the effect that sugared products exported from Great Britain to the Contracting States did not contain any bountied sugar. In reply I explained the difficulty of doing this, pointing out moreover, that it would impose a very grave hardship upon our enormous production of these articles for home consumption in order that the Contracting States might have the somewhat barren satisfaction of knowing that not even a few grains of bountied sugar were contained in our somewhat limited exportation of these commodities to them.

Eventually I stated definitely and categorically that Great Britain was not prepared to issue such certificates, but as an alternative I offered the following procedure:-

"If after the new arrangement had come into force any of the Contracting States should find that large quantities of sugared products contain- ing a considerable proportion of bountied sugar were being imported into their territory from the United Kingdom such State could apply to the Permanent Commission to direct what steps should be taken to remove the grievance; provided however that if the Commission could not indicate any remedy which Great Britain was willing to accept liberty should be reserved for Great Britain to withdraw from the Convention."

This suggestion was very well received, as giving evidence of a desire to do what was possible, but the majority of the Commission were of opinion that it was prefer- able to make no definite decision on the subject except so far as it was covered by the Project of Protocol.

At the last sitting of the Commission the President announced that he had received a communication from the Russian Government to the effect that a despatch was on its way, and would reach Brussels on Monday or Tuesday next, in which certain proposals were made respecting the eventual accession of Russia to the Sugar Convention. Copies of this communication will no doubt be forwarded as soon as possible by the Belgian Government to the Governments of the other Contracting States.

A few words are required as to the position of the Crown Colonics if the new arrangement comes into operation. Inasmuch as His Majesty's Government have not asked to be released from the provisions of Article 8, that article remains binding upon the United Kingdom and the Crown Colonies. It is to the effect that the necessary measures shall be taken to ensure that sugar passing in transit through the territory of a Contracting State shall not enjoy the advantages of the Convention in the market to which it is consigned. In order to give effect to this provision it would seem to be desirable that in Hong Kong, for example, the existing prohibi- tion of bountied sugar should remain in force for the present. If, however, it should subsequently be found that prohibition is too onerous a measure, it would be necessary to resort to some other expedient, such as certificates of origin, in case the prohibition were rescinded.

At the last sitting the Commission unanimously expressed the opinion that if any check occurred, to prevent the signature of the proposed Protocol before September 1st next a conditional denunciation by Great Britain would be greatly preferable to a definitive one, in case His Majesty's Government should really find denunciation to be imperative.

In conclusion, I should add that the Commission was of opinion that the text of the Project of Protocol should not be published until it had been signed-inas- It appears. much as it is still possible that some amendments might be insisted on. therefore, that the publication of my despatch of the 27th instant* should be deferred for the present.

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

&c.,

&c., &c.

• No. 76.

I have, &c.,

H. G. BERGNE.

27021

No. 78.

MAURITIUS.

THE GOVERNOR to THE SECRETARY OF STATE. (Received July 29, 1907.)

(No. 217.)

[Acknowledged, Miscellaneous, August 7, 1907.]

MY LORD,

Government House, Mauritius, June 12, 1907. IN continuation of my telegraphic despatch of the 7th current, I have the honour to transinit herewith, at the request of the Chamber of Agriculture, a copy of a resolution adopted by the Chamber at a meeting held on the 4th of June în favour of the continuance of the Brussels Sugar Convention.

I have, &c.,

Enclosure in No. 78.

CHAMBER OF AGRICULTURE.

CAVENDISH BOYLE.

RESOLUTION moved by Mr. J. J. Gibson, Manager of the Anglo-Ceylon and General Estates Company, Limited.

Whereas under the provisions of the Brussels Convention IIis Majesty's Govern- ment may elect to retire from the Convention on 31st August, 1908, on giving notice of such intention on or before 31st August, 1907,

It is hereby resolved,

That the Chamber views with great apprehension the possibility of the Home Government deciding to withdraw from the Convention. While the effects of the Convention since its inauguration have been to some extent obscured by the influ- ence of unusual seasons and the insufficient lapse of time for the sugar industry to adapt itself to the new conditions, the Chamber is strongly of opinion that the Brussels Convention has operated, and would in the future operate still more, benefi- cially to the cane sugar industry and Colonies. It restored free trade in sugar, and established confidence that the industry would thereafter be carried on under fair and equal conditions, and that capital introduced into it would no longer be at the mercy of unfair foreign legislation. A considerable stimulus to the industry in this Colony has resulted, and great efforts have been made, and much new and expensive machinery introduced, with a view to improve the manufacture.

The Chamber is of opinion that the denunciation of the Convention by His Majesty's Government will lead to the re-establishment of the unfair conditions formerly existing, and that with the resumption of open or veiled bounties, and the equally formidable cartels, the continued existence of the sugar industry in Mauritius will be gravely imperilled, and perhaps rendered impossible.

As the whole Colony is dependent upon sugar alone, such a collapse of its sole industry would necessarily be disastrous to the entire population, and to the admin- istration of the Government.

27064

SIR,

Adopted unanimously at a meeting held on the 4th June, 1907.

No. 79.

QUEENSLAND.

CAIRNS CHAMBER OF COMMERCE to COLONIAL OFFICE. (Received July 29, 1907.)

[See No. 83.]

Cairns, North Queensland, June 14, 1907.

I HAVE the honour, by direction of my Chamber, to address you in support of the request made by the West India Committee, that the Sugar Bounty Convention

• No. 12.