6
'granting of the rebate is extended to Formosan sugar also, even though it has paid
no duty.
The grant of this drawback has been renewed at intervals of about two years. The present law expires conjointly with the present tariff, and it is rumoured that the drawback will not be granted afresh from that date. If this should be true the Java sugar will suffer not only the loss of drawback 1:95 yen but also an increase in duty from 2-25 yen to 3.10 yen, a total loss of 2-80 per 100 kin, while Formosan sugar will suffer a loss of 195 yen drawback and gain 0-85 yen further protection against Java sugar.
(e.) The export duties abolished were :---
Brown sugar, 45 son per 100 kin. White sugar, 56 sen per 100 kin. Refined
sugar, 65 sen per 100 kin.
It will be seen from the figures of import and home product given that the most important variety of sugar is centrifugalled sugar or bunmitto." The relative position of Java and Formosan centrifugalled sugar as regards subsidies and duties is at present thus:~~~
Javo.
Formosa.
DRAFT.
De 4.Sz5.
F.O
Subsidy (a)
Drawback (6)
Import duty
Consumptions tax..
Total
::::
Yen.
Yen,
+ 1.95
+1.50 +1.95
-- 2.25
- 5.00
5.80
- 5'00
1.55
That is to say, Formosan centrifugalled sugar is protected against Java sugar to the extent of 375 per 100 kin.
There has been some talk lately of establishing sugar refineries in Formosa to compete with those in Japan proper. The Government appears to be determined to prevent such a development of the industry in Formosa, as the following extract from the semi-official "Japan Times" of the 11th instant shows:-
With the object of preventing over-production, the Formosan Governor-General has given private notice to the existing companies manufacturing unrefined sugar to the following effect :--
1. The Government will not give permission for the time being to the establish- ment of fresh sugar manufactories.
2. Nor will it permit an extension of the present manufactories so as to increase their productive capacities.
3. The same restrictions shall be placed also on the production of refined sugar."
The sugar refineries in Japan are said to be excellently equipped, but never to have been worked to their full capacity by any means.
R. BOULTER.
Yokohama, November 15, 1910.
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Mr. WH 13/2
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