132 SUGAR 



(e) Advantages derived from the exaggeration of the 



drawback. 

 (/) Advantages derived from any surtax in excess of 



the rate fixed by Article III. 



Definition (/), inserted at the instance of the British 

 delegates, was absolutely essential in order to meet 

 the case of the Cartel bounties. They proposed to define 

 Cartel bounties as " advantages derived from any 

 surtax," but in view of the critical state of the negotia- 

 tions accepted the limitation. The first Article is, 

 therefore, so far inconsistent that, though it declares 

 the abolition of all bounties, it permits any Cartel 

 bounty which may be obtained from the reduced surtax 

 fixed by Article III. The figure of this surtax was, 

 of course, a great bone of contention, but was finally 

 fixed at six francs per 100 kilogrammes, that is, 2s. 6d. 

 per cwt. 



The direct bounties in Germany, France, Austria 

 and Holland came under definitions (a) and (b). The 

 bounties defined under (c), (d) and (e) belong to one 

 family and are practically interdependent. Levying the 

 duty on an estimated yield is probably followed by the 

 obtaining of a yield in excess of the estimate, and conse- 

 quently by " a total or partial exemption from taxation 

 for a part of the manufactured product." But this 

 would not necessarily create a bounty unless the full 

 amount of duty were returned in drawback on export. 

 In that case the manufacturer can obtain the full duty 

 from the home consumer ; but if it were not so the 

 exemption from taxation would merely operate as a 

 reduction of duty to the consumer. Where the full 

 drawback is returned on export, though the full duty 

 has not been paid by the manufacturer, the drawback 

 becomes practically an exaggerated one and the bounty 



