The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1901-06-27
PAYS NO EXPORT BOUNTY
ITALY REPLIES TO SECRETARY
CAGES RECENT NOTIFICATION.
Says It's Sugar Industry Is Not FOs-
tered by Government Payment of
Export Bounty.

WASHINGTON, June 26-An official
statement from the Italian government was
communicated to the State Department to-
day to the effect that Italy paid no export
bounty on sugar. This action by the Italian
authorities follows eight days from the IS
suance of Secretary Cages treasury order
suspending the liquidation of all sugar i'm
ported from or produced in Italy 'on the
ground that the treasury had information
leading to the belief that Italian sugar re-
ceived a bounty. Mr.. Cages order
dated June IT, The action of the Italian
government was communicated by a cable
to the Italian embassy here, and was made
known to the acting secretary of state. DR..
Hill. by Mr.. Cariganani, the Italian charge
d affaires
Mr.. Cages circular did not state posi-
lively that Italy paid an export bounty.
but said that it appeared highly probable
this was the case. and accordingly the
liquidation of sugar accounts with Italy
were suspended pending further investiga-
ton. The declaration now made by the
Italian government does not appear to be
with any view of raising a sharp issue, but
rather to make known in explicit and Off
cial language that Italy does not pay this
bounty on sugar. The treasury order re-
cites: I'm view of the information thus far
received to the operation of the law of
Italy. now in force, concerning the excise
on sugar, it appears highly probable that
sugar produced in that country receives
indirect export bounty as follows: Sugar
below 20 Dutch standard, $50 francs per
100 Kilograms; sugar No. 20 Dutch standard,
6.l3 francs per 100 Kilograms. Pending fur
Their investigation of the matter the liqui-
dation OF all sugars imported from or pro-
duced In Italy shall be suspended. and the
duties shall be estimated in amount suffi-
cient to cover additional duties equal to the
above specified duties
From the standpoint of the Italian au-
thorites the foregoing order doubtless was
preliminary TO one putting into effect the
different.al rates against Italian sugar.
and in consequence the official declaration
is now submitted to the State Department
that Italy pays no bounty her sugar.
The action taken by Italy raises ques-
ton somewhat like that now pending with
Russia. each concerning sugar and each
referring TO the alleged payment of a
bounty. Russia h s taken the position that
she pays no boun6y and Italy now makes
a formal declaration of the same kind
While this is not necessarily a protest, it
presents an issue of fact to whether
bounty is or is not paid. 1t is understood
that within a week the Italian government
will submit full presentation of facts sus-
tanning its declaration. the present an
nouncement to the State Department being
merely brief official notification of Italy S
position without the data TO uphold that
position
The terms of the treasury order are such
that the discriminating duties now are be-
ing enforced against Italy, for although
the order recites that the matter is still
under investigation, it concludes with the
specific instruction that THE duties shall
be estimated in amounts sufficient to cover
additional duties equal to the above speci-
fled duty" These additional duties re-
ferred to $50 francs Cor about Slip in
one case, and 613 francs Cor about S1.22) in
the other case. The duties. therefore, are
in effect without further order, although
the terms of the order indicate that the
permanency of the increased duties is SUBJ
ject to the fuller investigation to be made.