Drain water chestnuts and marinate in soy for 30 minutes.
Roll each chestnut in sugar, then wrap with a strip of bacon (cut each slice of bacon in half cross wise and lengthwise), and secure with a cocktail pick.
Arrange on a cake rack in a shallow pan or on broiler.
Bake in a hot oven (400°) for 20 minutes.
Drain on paper toweling.
Before serving, return to a moderate oven (350°) for about 5 minutes to reheat and crisp the chestnuts.