CO129-329 - Governor Nathan - 1905 [7-12] — Page 281

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Note handed to Mr. Secretary Taft.

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Article III of the Brussels Sugar Convention of

March 5th., 1902, lays down that:-

"The High Contracting Parties undertake to limit the

surtax to a maximum of 6 francs per 100 kilogrammes for refined

sugar and assimilable sugars and to a maximum of 5 francs 50

centimes for other sugars. The surtax is the difference bet-

-ween the rate of duty or taxation to which foreign sugars are

subject and that imposed on the home product".

Countries affected by the Convention are bound to

either impose an import duty not less than the excess of the surtax over

the above amounts or to prohibit the entry into them of sugar from the

countries that have an excess surtax.

Hongkong is affected by the Convention. Being a free

port it cannot impose import duties and so is bound to prohibit importa-

-tion.

The Fermanent Commission which gives effect to the

Convention has ruled that the import duty on raw sugar at the Philippines

which by the Customs Tariff of the 3rd. March, 1905, is $1.62 per 100

kilogrammes gross weight is equivalent to an excess over the recognised

surtax of 1 franc 31 centimes per 100 kilogrammes. At the request of the

British Representative the Permanent Commission at their sitting in last

April postponed till October the question of penalising Philippine sugar.

Unless the excess surtax is removed it may be neces-

-sary for Hongkong to issue a prohibition order against the importation

of raw sugar from the Philippines.

This would injuriously affect bongkong and cannot be

of any advantage to the Philippines.

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