Proposed Tax on Foreign

To Assist Tahiti

Sugar Trade

Proposed Tax on Foreign Grown Article

From Our Own Correspondent.

Papeete, Dec. 2.

AT a meeting of the Papeete Chamber of Commerce held recently an inter esting debate took place on the question of increasing the import duty on foreign sugar. This proposition has cropped up periodically for several years past, but has hitherto been negatived owing to lack of sufficient support. This time, however, the Chamber voted in favour of a vari able or compensatory tax upon imported foreign sugars, designed to reduce the margin between the cost price of such sugars and that of the locally grown article.

During the course of the discussion it became apparent that the sugar produc tion from Atimaono plantation—the sole enterprise of this kind in the Colony at present—has increased very largely dur ing recent years, and is now in the neighbourhood of 900 tons per annum.

This local industry is now obliged to compete with foreign sugar—mostly of Chinese origin—which is imported by local Chinese merchants at a very low c.i.f. cost (about 0.90 francs per kilo), and which does not, of course, benefit the Colony by providing employment for local labour, as is the case with Atimaono sugar.

Other speakers stressed the consumers’ interests, and were against the imposi tion of increased import duties, but eventually the proposal was carried by a small majority and a recommendation in accord therewith forwarded to the Ad ministration. It is thought that a tax of 0.30 frs. per kilo will be sufficient to even up costs at the present time, to be sub ject to future variation depending upon the c.i.f. price of foreign sugars. The recommendations of the Chamber have been sent to the Minister for the Colo nies in France, from whom a reply is shortly expected.