1904
484
giving State such as the Argentine Republic. Now would the fact that Hong Kong had voluntarily imposed a countervailing duty on Argentine sugar relieve it from that obligation, as if it were a Contracting State? It may be said that the simplest plan would be for the Crown Colonies to adhere to the Convention but in the first place this would entail the necessity for refining in bond, which Hong Kong might not like and secondly it would raise a rather difficult question, viz, whether a colony such as Hong Kong would be bound to penalize bounty-fed sugar from a British colony, e.g., Australia. We have reserved the right of freedom of fiscal relations as between the United Kingdom and her colonies and Possessions but it might be contended that this did not carry with it the right of freedom of fiscal relations between the colonies themselves; and we have therefore hitherto rather discouraged the idea of the Crown colonies joining the Convention. It would be a good thing if in your official reply to our letter as to the Hong Kong Bill and Regulations you could give us your views on these points officially. I enclose copies of what we have written to Hong Kong so far. Kindly return the Procès Verbal enclosed.
Yours etc
(Sd) ARTHUR A. PEARSON
I also enclose a copy of a letter we have written to the Foreign Office which you may like to see.
1904
484
giving State such as the Argentine Republic. Now would the fact that Hong Kong had voluntarily imposed
a countervailing duty on Argentine sugar relieve it from
that obligation, as if it were a Contracting State? It may be said that the simplest plan would be for the Crown Colonies to adhere to the Convention but in the first place this would entail the necessity for refining in bond, which Hong Kong might not like and secondly it would raise a rather difficult question, viz,whether a colony such as Hong Kong would be bound to penalize bounty fed sugar from a British colony, e.g., Australia. "e have reserved the right of freedom of fiscal relations as between the United Kingdom and her colonies and Possessions but it might be contended that this did not carry with it the right of freedom of fiscal relations between the colonies themselves; and we have therefore hitherto rather discouraged the idea of the Crown colonies joining the Convention. It would be a good thing if in your official reply to our letter as to the Hong Kong Bill and Regulations you could give us your views on these points officially. I enclose copies of what we have written to Hong Kong so far. Kindly return the Procès Verbfaux enclosed.
Yours etc
(Sd) ARTHUR A.PEARSON
I also enclose a copy of a letter we have written to the Foreign Office which you may like to see.
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