CO129-325 - Public Offices & Others - 1904 — Page 464

461

Some rather important questions have been raised in

this correspondence, which it may be convenient to take

this opportunity of stating with their probable

solution .

Is French Indo China justified

under the Convention in exclud-

ing sugar from non conventional

countries which do not give

bounties? And if so may

it exclude such sugar after

being refined in Hong Kong ?

If Hong Kong adopted counter-

iling duties could such duties be refunded on the re-exportation of such sugar either after being refined or in its original state? (a) To any State ?

(b) To a non contracting State ?

1.

(2)

This appears to be a clear

breach of the Convention and,

though possibly of little prac-.

Bucke tical consequence, I have called

Chavelly,

Sir H.Bergne's attention to it and submit a draft to the Foreign Office on the subject, in case

it may be found desirable at

any time to question it. This

would furnish an answer to any contention which may be raised

that such sugar may be excluded after being refined in Hong Kong.

:::

We informed the Officer Adminis-

tering the Government by tele-

graph that such duties could

be refunded in case (b) (assuming

of course that due precautions

were taken against fraud). The

}

Board of Customs, in discussing cases (a) and (b) together express doubts as to the possibility of preventing fraud unless refining

in