CO129-542-13 Tobacco taxation- suggested scale of duties 23-12-1932 - 25-10-1933 — Page 14

Buston House ©

прод

No. 417.

Sir,

RECEIVED

28 AUG 193A

a. C. i.

614

GOVERNMENT HOUSE.

HONG KONG, 27th July, 1933.

I have the honour to inform you that I have

received representations that the existing drawback

regulation which prevents the granting of drawback in

the case of exports of manufactured tobacco made wholly

or in part of Empire grown leaf, is against the spirit

of the Ottawa Agreement as tending to discourage the

use of Empire raw tobacco.

2.

The reason for such a regulation is purely

financial. It would be easy to provide for payment of

drawback in the case of exports made wholly from Empire

leaf, but I understand that there is no likelihood of

such tobacco ever being manufactured here. If Empire

leaf could be used at all, it would be in blends composed

mostly of Chinese and cheap Virginian leaf and no method

is known by which the amount of Empire leaf in any given

blend can be ascertained, when samples are examined for

the purpose of granting drawback.

While therefore I desire to further Empire

trade to the best of our ability, it is necessary to

protect the revenue against the payment of drawback at

full rates on tobacco which has only paid the lower

preferential rate.

THE RIGHT HONOURABLE

SIR P. CUNLIFFE-LISTER, G.B.E., M.C.,M.P.,

3.

&c.,

&C.,

&C.