In the discussion concerning the German and Austrian cartels, it had developed that the heavy surtax permitted the Germans and Austrians to realize such high prices in their home markets that, even with the bounty repealed, their overproduction was very great and the large tonnage exported by them depressed values in foreign markets. Great Britain and Belgium, therefore, demanded that the surtax be reduced to a point where, while giving protection against foreign sugar, it would afford no inducement for the formation of cartels. Austria and Germany demurred to this and it looked as if a deadlock would again be reached, when Great Britain declared that if nothing came of the conference a measure would be introduced in Parliament excluding bounty-fed sugars entirely, or that some action equally drastic would be taken. It was further pointed out that an extra duty of an amount equal to the cartel profit had already been under consideration by the Indian government. With a countervailing duty effective in the United States, the market of Great Britain was the only important outlet left for bountied export sugars from the Continent. Then again, the British colonies had to be reckoned with, for if preferential privileges were accorded to their sugars Continental beet would suffer. Great Britain’s ultimatum, therefore, carried the day, and on March 5, 1902, the convention was signed by the plenipotentiaries of Great Britain, France, Germany, Austria, Belgium, Spain, Italy, the Netherlands, Norway and Sweden. The most important provisions of the convention were: 1. The suppression of all bounties, direct or indirect. 2. The limitation of the surtax, _i. e._, the excess of import duty over domestic revenue tax, to 53 cents per 100 pounds on refined and 48 cents per 100 pounds on raw sugar.[27] 3. Prohibition of importation of bounty-fed sugar from other countries, unless a countervailing duty is imposed. 4. Great Britain and the Netherlands pledge themselves that no preferential treatment will be given sugar from their colonies during the life of the agreement. 5. The agreement to come into force September 1, 1903, and to remain effective for five years from that date, and in case none of the signatory powers notifies the Belgian government of its intention to withdraw, it shall continue to remain in force for one year and so on from year to year. 6. The appointment of a permanent commission charged with supervising the execution of the provisions of the convention. 7. Spain, Italy and Sweden not to be bound by the principal restrictions, so long as they do not export sugar. Russia declined to come into the pact, stating as her reason that she paid no bounty.