SUGAR CONVENTION.

Dominion, Volume 5, Issue 1509, 3 August 1912, Page 5

SUGAR CONVENTION.

GREAT BRITAIN WITHDRAWING. By' Telesraph—Press Association—Cobyrteht London, August 1. Speaking in the House of Commons, Mr. Sydney Buxton, President of the Board of Trade, announced that Great Britain was withdrawing from tho Sugar Convention. UNIONISTS IN PROTEST. (Rec. August 2, 10.40 p.m.) London, August 2. The Unionists have protested at the suddenness of the announcement of Britain's withdrawal from the Brussels Sugar Convention. . Mr. Asquith has consented to give a day to discuss tho situation. The "Morning Post" says that the one point on which members of both sides in the lobbies are agreed, narrioly, that the Manchester by-election is closely connected with tho Government's decision. The Unionists, while deploring tho decision, emphasise that withdrawal from the Convention, will enable a Tariff Reform iGovernment to give preference to tho West Indies.

WHAT THE CONVENTION PROVIDES. In the middle of the 'nineties, Mr. Chamberlain, as Colonial Secretary, conceived tho idea that tho British West Indies wero being mined by the competition of bounty-fed producers of beet sugar. • The Unionist Government then

in power seems to have adopted Mr. Chamberlain's opinion, which regarded the bounties as tho root of all tho evil, and it was not loug before efforts were mado to restrict the free importation of bounty-fed sugars into Great Britain as well as into other countries. Tho opportunity presented itself in 1901, when the eighth European Sugar Bounty Conference met nt Brussels, and Great Britain was, of course, represented. A convention was drawn up binding tho contracting nations not to grant bounties and not to import sugar from. countries which granted bounties. This waa ratified early in 1903, subject'to Great Britain's refusal to penalise bounty-fed sugar from any British colony, and was to como into forco on September 1, 1903, remaining valid, for five years. Russia—a bountygranting country—was not represented at the conference, and the most important result of tho convention was to shut off the Russian supply from English commercial and domestic consumers. Ou November 21 last Sir Edward Grey stated in the House of Commons that unless Russia were permitted to export at least 500,000 tons of sugar westward during tlw current season, Great Britain would give notice of withdrawal from the Convention'in September, 1913, the earliest date possible. - In February it was announced that the parties to the convention had agreed that Russia should bo allowed to export an extra 150,000 tons, an amount far below that demanded by Great Britain. • ' In on article discussing the effects of the British withdrawal "The, Times" said: -r-"If Great Britain withdraws from the Convention, ns suggested, thore is little doubt that the effect of snch withdrawal would be seriously felt by homo refiners and manufacturers. It is believed that by such action the colonial trade would be seriously injured, as it would bo impossible for British exporters to guarantee' that they have not used bounty-fed sugar. Tho effect upon the confectionery trado might be even more serious, ns it can hardly bo exuected that the other countries in the Convention would continue to English exporters tho advantages they have hitherto enjoyed with regard to trade with thoso countries in the Convention. It is not considered likely that in the event of the withdrawal of Great Bri'nin anv of the countries represented in tho Convention would revert to tho old bounty system, but they mieht grant some advantago to their own growers which would cause capital to bo withheld from tho reviving cone sugar industry.