No. 36.
32
Art. 3. Le Ministre du Commerce, de l'Industric, des Postes, et des Télégraphes et le Ministre des Finances sont chargés, chacun en ce qui le concerne, de l'exécution du présent Décret, qui sera inséré au "Bulletin des Loisi
"et publié au Journal Officiel."
Fait à Paris, le 10 Novembre, 1904.
Par le Président de la République :
Le Ministre du Commerce, de l'Îndustrie,
des Postes, et des Télégraphes,
GEORGES TROUILLOT.
Le Ministre des Finances,
66
EMILE LOUBET.
*
33
4. Mr. Lyttelton notices further that glucose is not mentioned in Regulation 8, Enclosure 1, and he would propose to suggest to the Governor that the word 'glucose" should be inserted between "include" and "molasses."
"}
5. With regard to sugar in transit, Mr. Lyttelton would propose to allow the Governor discretion to amend the regulations so as to provide for bounty-fed sugar passing through the Colony under proper safeguards, whenever the necessary arrangements can be made.
I am, &c.,
C. P. LUCAS.
ROUVIER.
3363
PUBLIC RECORD OFFICE
| | || | ||
Reference :-
C.O. 882
40894
No. 33.
MR. LYTTELTON to GOVERNOR SIR M. NATHAN. (Sent 1.20 p.m., December 19, 1904.)
TELEGRAM.
[Answered by No. 34.]
Referring to my telegram of December 8,* suspend action as to all countries named between the words "In addition" and "In case of" except Brazil. Their cases are to be re-considered.
42922
No. 34.
GOVERNOR SIR M. NATHAN to MR. LYTTELTON. (Received 11.40 a.m., December 20, 1904.) TELEGRAM.
[Answered by No. 40.]
Referring to your telegram of 19th December. † Desirable to avert report of Commission against Philippines as exclusion of their sugar under Ordinance XIV. entails serious consequences on refineries here.
41762
No. 35.
MEMORANDUM AS TO THE EXISTENCE OF A BOUNTY ARISING FROM EXCESSIVE SURTAX IN THE COUNTRIES COVERED BY THE BRITISH APPEAL.
(1) Philippines.
All the evidence available goes to show that the existing surtax in the Philippines cannot in any way lead to a bounty on sugar whether raw or refined.
Such a bounty can only arise where a considerable home consumption of sugar enables the manufacturers to obtain a large profit in the home market by the enhanced prices which the high surtax renders it possible to obtain. But in the Philippines there is no such home market. So far as our information goes there are no refineries in operation in the islands and the refined sugar required for consumption is imported and consequently pays the import duty. There is reason to believe that this imported sugar is actually to a large extent Philippine sugar refined in Hong Kong and elsewhere, so that the duty is rather of the nature of a consumption tax on native sugar than a protective duty. This is distinctly stated in the Commercial Notes prefixed to the February, 1904, issue of the Monthly Summary of the Commerce of the Philippines:-
"All our refined sugar comes from Hong Kong. We ship the raw product to the British Metropolis (sic), and they return the refined article to us, and the local consumer pays freight both ways, and the cost of running it through the foreign sugar machine. The most prominent. candy manufacturers in America buy their sugar in America. We need a sugar refinery."
The non-existence of any working sugar refineries has been confirmed by tele- graphic communication with His Majesty's Vice-Consul at Iloilo and His Majesty's Vice-Consul at Manila. The former telegraphs that there is one small refinery at Manila, but the latter states that no refineries have been working for four years.
No official estimates are available of the production of raw sugar in the islands, but the following statement shows the exports for the last four years of “raw or brown sugar."
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE BE REPRODUCED PHOTOGRAPHIC-
COPYRIGHT PHOTOGRAPH-NOT TO
COLONIAL OFFICE to THE BOARD OF CUSTOMS.
[Answered by No. 37.]
SIR,
Downing Street, December 28, 1904. WITH reference to the letter from this Office of the 24th of June, ‡ and to previous correspondence on the subject of the regulation of the sugar trade of Hong Kong, under the Brussels Sugar Convention, I am directed by Mr. Secretary Lyttelton to transmit to you, to be laid before the Commissioners of Customs, the enclosed copy of a despatch § from the Governor of Hong Kong, forwarding copies of an Ordinance to give effect to Article VIII. of the Convention, and a draft of Regulations drawn up under that Ordinance.
2. Mr. Lyttelton would feel much obliged for any observations or suggestions which the Commissioners may be good enough to offer on the Ordinance and Regulations.
3. With regard to the latter he would observe that Regulation 5 appears to require some amendment to meet cases such as that of Japan, where candied sugar is bounty-fed, but raw sugar is not. As the regulation now stands, Hong Kong would apparently be obliged to exclude Japanese raw sugar, which receives no bounty,
• No. 30.
† No. 33.
* No. 28.
§ No. 31.
United Statea
Hong Kong
1900.
1902.
1908.
Exporx to-
1901.
Metric tons.
2,154
Metric tons.
5,227
Metric tons.
5,122
Metric tons. 29,323
36,038
23,887
53,972
16,132
8,880
6,361
13,286
27,774
16,771
32,721
4,851
16,387
+
7,155
65,209
98,623
85,331
United Kingdom
---
***
Japan Other Countries
Total
#1
56,888
The exports to "other countries are mainly exports to China. It will be observed that the direct exports to the United Kingdom were nil in two of the above years.
From what has been already said it will be realised that the exports of refined sugar are practically negligible. (They amounted to about 20 tons in 1903.)
18621
8
Page 480Page 481
PUBLIC RECORD OFFICE
Reference :-
TLC.O. 882
6
PUBLIC RECORD OFFICE, LONDON
ALLY WITHOUT PERMISSION OF THE COPYRIGHT PHOTOGRAPH—NOT TO BE REPRODUCED PHOTOGRAPHIC-
The imports of the last year or two.
Imports from-
Hong Kong
China ...
Other Countries
Total
34
refined sugars into the island have increased considerably in
They are shown in the following statement:-
1000.
1001.
3902.
1003.
Metric tons.
441
Metric tons.
153
Metric tons. 961
Metric tons.
830
•
23
557
808
1,831
124
200
300
834
1,975
2,961
نانه
530
Telegraphic communications have also been sent to His Majesty's Vice-Consul at Iloilo and His Majesty's Consul-General at Manila asking whether there is any internal consumption of raw sugar and, if so, for what purposes and to what extent. The former replies in the negative, the latter in the affirmative, adding that it is impossible to estimate, but that 6,000 tons are consumed by the natives only in confectionery and coffee. The consumption of sugar in the Philippines by the European population must be quite insignificant compared with export. In 1900 the European population numbered 70,000 (including over 62,000 for the Army of occupation). Allowing even the high American rate for consumption 68 lbs. per head, this could only account for about 2,000 tons.
The consumption by the 70,000 Chinese and Japanese would probably not exceed one-tenth of the above figure,
Such a quantity as here suggested amounts to an altogether too small proportion. of the output as indicated by the figures already given for exports to enable a bounty to be derived from the high surtax even if any combination of producers were in existence who could get the most out of such an advantage. There is no evidence that the price of sugar for native consumption is any higher than the price for expor- tation, and in order to prove the existence of a bounty it would be necessary to adduce such evidence. On the other hand the following extract from the "Monthly Summary of the Commerce of the Philippines" for October, 1903, suggests that the price is small and in many instances unremunerative.
"The selling price of sugar in the Iloilo market, based on the price in foreign markets, is about $64 Mexican per ton, which allows little or no profit on the sugar from the most favourably located estates and is considerably less than the cost of production on the interior estates
The planters are more deeply in debt
at the close of 1903 season than at any previous time in their history, and if it had not been for the low ruling rate of exchange enabling powers to pay more in Mexican currency on practically the same gold prices as last year, a large percentage of the planters would have been entirely ruined and compelled to abandon their estates. The planters have been steadily losing ground since 1899, and have only been encouraged to continue the operation of their estates by the hope each year that their products would be admitted to the markets of the United States at a much more favourable rate of duty than is now imposed."
Telograms have also been despatched to His Majesty's Consul-General at Manila, and His Majesty's Vice-Consul at Iloilo enquiring whether there is any combination among sugar producers to keep up home prices, and to export at lower prices. The former replies that there is none, and that there is no likelihood of such a combina- tion; the latter that a combination is impossible.
Board of Trade,
2661
SIR.
December
1904.
1
No. 37.
THE BOARD OF CUSTOMS to COLONIAL OFFICE. (Received January 27, 1905.) [Answered by No. 53.]
Custom House, London, January 26, 1905. WITH reference to Mr. Lucas's letter of the 28th ultimo, 41762/1904, † on the
↑ No. 35.
Equivalent to about £5 128. per ton.
35
subject of the Hong Kong Sugar Ordinance and proposed Regulations thereunder, I am directed by the Commissioners of His Majesty's Customs to offer the following observations for the information of the Secretary of State for the Colonies:-
As regards the Ordinance, it appears to the Board that provision should be made in Section 2 to meet cases, such as that of Japan, where certain classes of sugar are bounty-fed while other classes are not. The section, as worded, may cover the point, but it depends largely upon the interpretation to be placed upon the words *no sugar" in line 4. Any doubt in the matter would be removed by the insertion of the word "such" between "no and "sugar."
In that case no amendment of Regulation 5, such as is suggested in paragraph 3 of the letter under reply, would appear to be required. It is, however, suggested that the legal advisers of the Colonial Office might be consulted on the point.
J
It is pointed out in Sir M. Nathan's despatch, that the importation of sugar in transit has not been provided for in the Ordinance, and the Board agree with the Secretary of State that this omission should be remedied. This could be done con- veniently by adding to Section 2 the words" This section shall not apply to sugar transit."
in
It may be observed that provision was made for sugar in transit in the draft Bill enclosed with Colonial Office letter of the 24th May last, No. 17736/1904,† by the words "an Order made under this section shall not apply to sugar in transit" in Section 2.
With respect to paragraph 4 of Mr. Lucas's letter of the 28th ultimo, † the word "glucose" should be inserted between "include" and "molasses" in Regulation 8, as suggested.
The Board would observe, with regard to the Certificates of Origin proposed to be required on entry and to be issued on export, that the forms do not quite follow the lines suggested by the Brussels Permanent Commission. So far as sugar to be kept in Hong Kong is concerned this may not be of much importance, but for exports it is thought that the usual conditions should be adhered to, although, even in this case, unless there are exports to contracting States, it is probably not a matter of much moment at present. This would entail, for export certificates, the following addition to Regulation 5, viz. :-
" (c)
+
or of despatch, and the country for which the goods
are destined; and (d) the method of transport (railway, ship, boat, &c.)."
The following addition should also be made to Regulation 2 :-
"With regard to sugar prepared in non-contracting States.
the certificate must state, in addition, that it is derived from a factory which does not work sugar coming from a State to which a special duty or prohibition is applied."
In the absence of a proper fiscal authority in the country of origin or despatch,
the Board see no objection to Hong Kong accepting certificates signed and issued by British Consular Officers, as provided for in Section 3 of the proposed Regulations. The proposed "Regulations for sugar in transit" appear to be satisfactory so far as landed sugars are concerned, and the Board do not think that any objection need he raised to the proposal of the Governor (paragraph 5 of despatch*) to simplify them by approving the warehouse of a particular company for the ware- housing of sugar in transit if that course is found more convenient.
It would be well to make clear in these Regulations that sugar in transit need not necessarily be landed, but may be transhipped from vessel to vessel, or may remain on board the importing vessel for subsequent exportation, under official supervision.
This latter point is referred to in paragraph 5 of Sir M. Nathan's despatch, but
is not dealt with in the proposed Regulations for sugar in transit.
I am to add that it is not the practice in this country to require Certificates of Origin for sugar in transit, the goods remaining in Customs charge the whole of the time they are in the United Kingdom and the original certificates going forward with them. If this course can be followed in Hong Kong, then the words "except in transit" should be added between "Colony" and "shall" in Regulation 2, lines 1 and 2, of the proposed regulations.
I am, &c.,
• No. 31.
↑ No. 16
18624
R. HENDERSON.
‡ No. 35.
E 1
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