550.S1 Economic Commission/30: Telegram

The Acting Secretary of State to the Chairman of the American Delegation (Hull)

125. Your 75, June 28, 7 p.m., and Department’s 114, July 7, 5 p.m., and 117, July 7, 9 p.m. Replying further with regard to sugar, the negotiations here seem to have run into the stumbling block of Philippine production greatly in excess of the 850,000 tons provided in Independence Bill,54 which would not go into effect for 5 [10?] years.

On the assumption that domestic beet and cane production is not increased, we feel that Cuba should export to us as much as 1,700,000 tons. Philippine excess production would reduce this to 1,300,000 tons.

The President feels that there is no reason why the Delegation should not continue to confer about world production limitations. On world reduction plan he feels that regional treatment is advisable keeping transportation distance as short as possible.

In regard to wine production limitation the President does not believe we can enter into any agreement which would limit our right to make domestic wines. This, he holds, is a domestic industry of great potential value and is in line with our national effort to increase temperance by substitution of beer and wines for Tennessee and Georgian mountain dews.

With reference to lumber the President has no doubt that you realize the pressure of Pacific coast states on Congress. Nevertheless, he feels that we should take the long range point of view looking to conservation of our own diminishing supply. As a general principle, he believes that it is wise to encourage the use of lumber from the large untapped sources, and also to encourage plans to make each nation eventually self-sustaining in production of lumber for its own uses.

  1. 47 Stat. 761.