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THE HONGKONG SUGAR INDUSTRY AND THE JAPANESE TARIFF.
THE HONGKONG WEEKLY PRESS AND
44
†May 1, 1895.
I am to suggest that Sir William Robinson should also be informed that the duties on sugar to be levied under the new tariff will be subject to the most the Japanese Government should levy an excise tax favoured nation article of the treaty. Moreover, if on refined sugar, and give it back by way of bounty, it would be open to Her Majesty's Government to con- tend that it was not levied at all, and so that extra import duties could not be imposed. The Japanese Government have, however, by the new treaty a right, as they have by the old treaties, to give a bounty it! no excise is levied. ·
The supplementary convention referred to in article I of the protocol has not yet been concluded, the limit of time for negotiating having been extended by agree. ment with the Japanese Government for six months, that is, until the 16th of July next.
been exceptionally high during the six months preced- As regards the question raised by Messrs. Jardine, Matheson & Co. relative to the price of sugar having ing the treaty, I am to enclose a statement showing that English prices, which mainly govern the world's prices, so far from being high were abnormally low, below those of the first half of 1991. It is true that only two years out of the sixteen quoted having been for the last six months of 1891 (ie., after the treaty not affect the argument. It is also true that the silver was signed) the prices were still lower, but that does prices of sugar were higher owing to the low price of silver, but this is a separate question.
Japanese duty.
the duties from raw sugar unless the refined sugar A provision for preveuting Japan from taking off
duties were also reduced would have been most unusual, and it would have been necessary to press for provisions in regard to proportionnte duties between yarna and tissnes; pig iron and iron wares, and any other half-made and fully manufacured articles.
by the General Managers of the China extract from a despatch to the Colonial Sugar Refining Company, for on the publica- | Office :--· tion of the new treaty and tariff they wrote to the Chamber of Commerce requesting the In the appendix to thereport of the Cham-Chamber to take sich steps as it might deem ber of Commerce there is some interesting most desirable to represent in the proper correspondence with reference to the effect quarter "the discriminating effect of the of the tariff established under the new treaty the colony."
new treaty against the chief industry of with Japan on the sugar trade of Hongkong. forwarded the letter to the local Government, The Chamber accordingly To make the history of the question com- which sent it on to the Colonial Office, from plete, however, we must turn to the Blue which a reply was in due time received. Book containing "Correspondence respect- Messrs.JARDINE, MATHESON & CO. pointed out ing the Revision of the Treaty arrangements in their letter that under the tariff still in "between Great Britain and Japan." In a
force refined sugar was subjected to an im- memorandum of an interview held at the the new tariff 10 per cent. was to be imposed, port duty of 24 cents per picul, while under Foreign Office on the 27th June, 1894, we which within six months was to be converted find that Mr. BERTIE referred to the omis- into a specific duty on the basis of the sion of sugar from the conventional tariff.medium of prices during the six months The question of the duty to be levied on preceding the date of the protocol. It hap- sugar under the new tariff was, he said, a pened, Messrs. JARDINE, MATHESON & Co., very serious one, in view of the importance went on to say, that the prices ruling during of the sugar refining industry of Hongkong, the six months in question were higher than which a high customs duty would destroy. at any time in the history of the trade, and He suggested, however, that, apart from the it followed that the duty would be calculated
With reference to the calculation that the rate of duty it might be decided to accept, an ar
ten per cent. ad valorem on refinet sugar would upon an abnormally high value, probably mean a specific duty of ninety cents per pioul, I am rangement might be made stipulating, as leading to a specific duty of 90 cents per
to forward the enclosed tables of Customs' duties on was done in the case of spirits in the Cobden picul; also that under the existing tariff raw
sngar in European countries and the United States treaty with France, that, should the Japanese sugar had been paying an import duty of the Japanese duty on refined sugar so far from being and in British possessions. These tables show that Government find it necessary at a future 13 cents per picul, whereas in the new
exorbitant as compared with the rates levied in time to establish an excise tax, or inland tariff no mention was made of raw sugar, duty of ten per cent. ad valorem becomes ninety foreign countries is quite the contrary. Even if the duty, on sugar manufacured in Japan, an the omission no doubt being accounted for cents per picul, or about one and sixpence per hundred increased duty of an equivalent amount by the Japanese contemplating the intro-weight, this rate may be contrasted with duties of might be imposed on British refined sugar.duction of the manufacture of refined sugar also, it will be seen that considerably more than half frequently ten times that amount. Taking the colonies Viscount AOKI replied that one reason which upon an extended scale, and so long as raw
those enumerated have ratos much higher than the had induced his Government to omit sugar sugar was free the Japanese factories would from the new conventional tariff was that if be bountied, as against those of Hongkong, a duty of 20 per cent, ad valorem, which had to the extent of the duty levied upon refined appeared in previous draft tariffs, were in- sugar imported. It was also suggested in serted, attention would be at once drawn to the letter that the provision as to the duty it as being a much higher duty than the being raised to an extent equivalent to any rates attached to other articles of British excise tax to be levied on Japanese refined importation, and objections would be made. sugar might be made to operate merely as a At another interview held on the 12th July means of levying an additional duty on re Viscount AORI observed that the demands fined sugar from Hongkong, as there was of Her Majesty's Government in respect of nothing to prevent the Japanese Government sugar had been received wh much surprise encouraging refineries under state subsidy by the Japanese Governant, who, in mak- and imposing an excise tax equal to such ing their last concessions, considered that subvention, which tax would also be levied they were in possession of the entire views upon the Hongkong sugars already bearing of Her Majesty's Government in regard to the initial duty of 90 cents per picul. This the tariff, and he drew attention to the tariff letter was forwarded to the Colonial Office, presented by the foreign delegates at the and in reply copies of departmental cor- Tokyo conference of 1886, which provided respondence that had taken place on the for duties of 20 per cent. on refined sugar subject and an answer by the Foreign Office and 15 per cent. on non-refined sugar. Mr. to Messrs. Jardine, MathESON & Co's re. BERTIE, in reply, said he considered the presentations were sent out. On the 28th sugar proposal very prejudicial to the trade June, 1894, the Foreign Office wrote to the of Hongkong, and, after consultation with Colonial Office stating that the retention of tere may be in the demand from Japan. Sir R. MEADE, informed Viscount Aox that a free hand in respect of sugar was a funda- According to Messrs. JARDINE, MATHESON the Colonial Office objected to it very strongly, mental part of the Japanese proposals, but & Co's letter to the Chamber of Commerce and would, if Japan insisted, be obliged to that Lord KIMBERLEY was anxious if possible the capacity of the refineries here is not less. refer to Hongkong and the leading merchants to safeguard the interests of the Hongkong than 325,000 tons of raw sugar annually of in the city interested in sugar, thus causing sugar refineries, and asking what was the a value of £3,500,000, and the export of considerable delay in the negotiations without highest duty on refined sugar to which, in refined sugar to Japan in 1893 probably a fair prospect of success in the end. The Lord RIPON's opinion, it would be safe to amounted to between 70,000 and 80,000 Japanese Government were, however, very assent; it being pointed out at the same time tons, representing a value of over £1,000,000 desirous that the treaty should be signed at that in the Treaty Revision conference of sterling. That of course is a very large once, and in order to avoid delay, Viscount 1882 at Tokyo Sir HARRY PARKES consented trade, and it has grown up practically within AOKI agreed to accept the proposal that e- to a Japanese duty of 20 per cent., that in the last twelve years. But the growth of fined sugar should be inserted in the con- the later conference of 1886-87 this rate of the sugar trade in China has been even more ventional tariff at a duty of 10 per cent. and duty was confirmed by the commercial com-
remarkable and promises constant and that any tax which it might be considered mittee of the conference, and that the con-profitable employment for the Hongkong necessary at any time to levy on the produc-clusious reached by the two conferences in refineries, we trust, for all time to come. tion or manufacture of refined sugar in
There may be the competition of the Japan might be counterbalanced by an
Japanese refiueries to count with by and by, additional duty equivalent to such tax. The
for they will naturally try to cultivate the treaty was accordingly signed with that pro-
China market, but on equal terms the Hong- vision included, and in a despatch from the
kong refineries will always be able to hold Colonial Office to the Foreign Office the
their own. Ten years ago, that is, in 1884, Marquis of RIPON's thanks were conveyed
the total import of sugar into China, brown to the Earl of KIMBERLEY for the action
and white, was, according to the Imperial taken the interests of the Hongkong
Maritime Customs returns, 110,409 piculs sugar refiners with respect to the duty on
of a value of Hk. Tls. 440,784. Last year, refined sugar.
1894, the import amoun ed to no less than 1,828,891 piculs of a value of Hk. Tis. 9,507,153, or say 107,288 tons of a value of
The satisfaction of the Marquis of RIPON, however, does not seem to have been shared
respect of the proposed Japanese tariff were accepted by Her Majesty's Government and subsequently constituted Lord SALISBURY'S tariff proposals of 1890. At the same time the alternative was suggested of a minimum tariff of 10 per cent. with an additional duty equivalent to any excise tax that might be imposed on Japanese refined sugar. This proposal, after consultation with Mr. WIL. LIAM KESWICK, Was accepted by the Colonial Office. The reply of the Foreign Office to Messrs. JARDINE, MATHESON & Co's repre- sentations is embodied in the following
Duties are, of course, not pleasant things to those whose goods they affect, but on the whole we think Hongkong has reason to congratulate itself that the local sugar in- dustry has not been more adversely affected by the new Japanese tariff than is actually the case. The 10 per cent, duty, while it will no doubt give the proposed Japanese refineries an appreciable advantage in Jupan over their Hongkong competitors, will not enable them to cut the latter ouo altogether, at all events for many years ttl come, for Hongkong offers great natura advantages for the industry. In the mean- time the China market is steadily growing, and will more than make up for any falling
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