DIPLOMACY 133 



is really the result of a combination of the cases denned 

 in (c), (d) and (e). 



The second Article abolishes such bounties as are 

 here denned by prescribing excise supervision of factories 

 and refineries, so that no duty shall be charged on the 

 estimated yield, and therefore no drawback paid on 

 exported sugar. The sugar will be manufactured and 

 refined " in bond," that is, without having paid any 

 duty ; drawbacks will thus be abolished, and the sugar 

 for home consumption will pay the duty when delivered 

 for that destination. 



The third Article fixes the maximum surtax at six 

 francs per 100 kilogrammes. 



The fourth Article is the penal clause, the object 

 of which is to give the contracting States security that 

 they shall not in future have to compete with bounty-fed 

 sugar. It declares that a duty not less than the amount 

 of the bounty shall be imposed in the markets of the 

 contracting States on sugar from all countries that 

 grant bounties. In the case of bounties arising from a 

 surtax higher than that fixed by Article III, the counter- 

 vailing duty shall be calculated by deducting from the 

 surtax the figure so fixed and taking half the difference 

 as representing the bounty. 



These then are the salient points of the Convention : 

 the decision to abolish all bounties ; the establishing 

 of manufacturing and refining " in bond " ; the limita- 

 tion of the surtax ; and the security to the contracting 

 Powers that bounty-fed sugar will no longer be tolerated 

 in their respective territories. 



There is one minor point in the Convention which calls 

 for a word of comment. The fourth Article lays down 

 the rules for countervailing a bounty by means of an 

 equivalent duty, but it adds as an alternative that the 

 high contracting parties reserve to themselves the power 



to (1463) 



