561.35E1/6: Telegram

The Acting Secretary of State to the Consul at Geneva ( Gilbert )

3. Your No. 1, January 4, 10 a.m. You may inform Mr. Avenol that this Government recognizes the desirability and is prepared to support the general idea of an international agreement for the regulation of production and world trade of sugar; and is ready to take part in “preliminary and exploratory” discussions “for the purpose of deciding if a general conference of sugar-producing countries would lead to satisfactory results.” Please make it perfectly clear that this Government cannot take any position with respect to an international agreement until its policy embracing the areas supplying the American domestic market has been developed. By this is [Page 666] meant, in particular, action by Congress on certain administration proposals which may be submitted to it in the near future.

It is noted that in the opinion of the International Sugar Council the American and British delegates should represent their respective governments. You may also inform Mr. Avenol that this Government concurs with this view and, in fact, believes it both desirable and essential that the representatives of the other supply areas likewise be government delegates. Moreover, since a world agreement is the ultimate objective, you may suggest to Mr. Avenol the desirability of inviting to the preliminary meeting the other exporting nations and the principal importing nations besides those mentioned by the Sugar Council.

Phillips