THE SUGAR CONVENTION.

Colonist, Volume LV, Issue 13736, 30 May 1913, Page 5

THE SUGAR CONVENTION.

BRITAIN'S WITHDRAWAL

INTERNATIONAL AGREEMENT

REACHED

Brussels, May 28

In connection with Great Britain's withdrawal from the Sugar Convention, an international arrangement has been arrived at enabling tho presont regime to be maintained so long as Britain's fiscal system remains unaltered.

Meetings of tho Permanent International Sugar Commission were held in Brussels in Dwu:nber, 1911, .and January, 191*2, to consider the question of the 'conditions under which Russia would by prepared to ■remain a party to tho Sugar Convention for a- furtlior period of \ears niter So])tember Ist, 1913. Russia," asked to be flowed to export woktward ouch yrar either 20 p?r cent or her sugar output, or an amount commencing With ,?(K),000 ions in tho first yiv.ir, and increasing ca-ch .year by lo per cent. h> his instructions to the iJrit-iKh- delegate, .Sir Edward Grey wrote that it was evident that there was Httle likelihood of further supplies of .Russian sugar being sanctioned unless Great Britain was prepared to hold out some- hope that, if «at:;-iied on this point, she would rol'rain from giving notice in 1912 of withdrawal from the Convention. The recent great rise in sugar prices had been widely attributed in England, said Sir Edward Grey, either in whole- or part, to tlie effect of tho Convention, and in particular to the rcstrk'tioini on the export of Russian sugar; and in view of the- undeniable fact that A quantity of such sugar was being artificially kept off the western market by the protocol agreed to among tho other contracting States. Tho British Government did not find it possible to effectively combat this view. The British Government was anxious, if possible, that tho sugar consumers, and tho sugar-using interests of Great Britain should secure that measure of relief which would result from an expansion during 1911-12 of the Russian exports westward. In no circumstances would the British Government renew tho Convention more eprmancntly than from Year to vcar.

As a result' of tho meetings of tha Commission, Russia accepted a compromise- by which she was prrmittcd to increase bar export by 150,000 tons in 1911-12, and by 50,000 tons in each of the two 'succeeding years, and on March 17th a protocol renewing the Brussels Sugar Convention for five years from September Ist. 1913, was signed by the representatives of Germany, Austria, Hungary, Belgium, France, Luxemburg, the Netherlands. Pe>ru, Russia, Sweden and Switzerland. Tho terms were not regarded by the British Govern incut «s •satisfactory, and in August it informed the Belgium Government of England's intention to withdraw from tho Convention on September Ist, 1913.