§ 1. Sir ARTHUR FELLasked the Secretary of State for India if he is aware that the Indian Government permits tea grown in Ceylon to be imported into India free of duty whilst the Ceylon Government exacts a duty of four annas a pound on Indian tea imported into Ceylon; and will the Indian Government remonstrate with the Ceylon Government against this tax, and, failing its withdrawal, will it put a similar duty on Ceylon tea coming into India, and thus allay the grievance felt throughout India by the planters, and remove this cause of faction between the two countries?
§ The SECRETARY of STATE for INDIA (Mr. Montagu)The Indian Import Duty on tea is 7½ per cent. ad valoren; the Ceylon duty is 4 annas per pound. These rates apply to tea from all countries of origin. The Ceylon Government, it is understood, considers a high Import Duty essential to the preservation of the reputation of Ceylon teas. I am not aware that a similar need is felt in India or has formed the subject of any Motion in the Imperial Legislative Council.
§ Sir A. FELLIs it not the fact that considerable quantities of Ceylon tea are now being sold in the South of India, and that the planters in the South of India feel that they are not fairly treated?
§ Mr. MONTAGUIt is not the fact that Ceylon tea goes into India free of duty, as there is a duty on it of 7½ per cent. If the suggestion of the hon. Member is that there should be retaliation against Ceylon, that is a matter which will require careful consideration in India.