561.35E1/87
Memorandum by the Chief of the Division of Latin American Affairs (Wilson)
It will be recalled that there was a conference in London in March, 1934, to consider the international sugar situation, attended by the United States, Great Britain and the Chadbourne countries. There follows a summary of developments since that conference.
At the March conference, its Chairman, Lord Plymouth, laid down two conditions which would have to be fulfilled before a further meeting could usefully be held. These conditions were: (1) that the legislation then pending with regard to sugar be passed by the American Congress, and (2) that as a result of further negotiations the Chadbourne countries reach an agreement among themselves as to the division of quotas for the “free” market.
On June 25, 1934, Lord Plymouth wrote Senator Beauduin, Honorary President of the International Sugar Council, stating that the first condition had been fulfilled and inquiring whether the Chadbourne countries had made any progress in their negotiations. Apparently this communication caused Senator Beauduin to call a meeting of the International Sugar Council which was held in Brussels July 30–August 2. Although there was agreement that the “free” market had declined to about 2,800,000 long tons, there was a wide divergence of opinion as to the division of this amount among the various participating countries. Some countries, such as Cuba and Peru, insisted that the quotas be directly related to exports of the previous year, while other countries, such as Czechoslovakia, insisted that the quotas be based upon the original Chadbourne quotas established in 1931, proportionately reduced. The Java delegation at no time stated what quota it desired, but merely undertook to consult its government. In view of the inability of the Council to reach an understanding, it was agreed that each delegation should consult its own government regarding the share of the 2,800,000 tons it considered itself entitled to and should notify Senator Beauduin of the decision. If Senator Beauduin, after receiving advice from each delegation, thought that there was a possibility of reaching an agreement, then another meeting was to be called in October. At the same time each delegation was to inform Senator Beauduin of its opinion as to whether another world conference should be convened, even though the Chadbourne countries had not been able to reach an agreement among themselves.
The negotiations of the Chadbourne countries making no further progress during the next two months, Senator Beauduin wrote Lord [Page 680] Plymouth on October 15, 1934, informing him of this fact and stating that “the Council feels that the further progress which is necessary to reach a World Convention can only be made at a wider conference and not by continuing discussions in the Council”. He requested Lord Plymouth to waive the conditions laid down at the conference in March regarding the prior agreement of the Chadbourne countries on a division of quotas and to summon a further conference.
Even before this letter was written, however, a complicating situation had arisen out of a personal letter dated September 20 from Dr. Colijn to J. Ramsay MacDonald raising certain questions, the nature of which is not disclosed in the data before the Department. The British Empire being by far the largest “free” market today is in a strategic position in any effort to stabilize markets and bring supply and demand into equilibrium. Its sugar subsidy law expires this year and a parliamentary commission has been studying for several months the sugar situation and is due to report to Parliament any day. It is known that the British Minister for Agriculture30 is favorable to home production of agricultural products, including sugar beets. The Chadbourne countries believe, therefore, that the time to reach a world convention is before the British Parliament definitely fixes the sugar policy of the British Government for the coming years.
The British Government has not been unfavorable to a world agreement. At the same time, it is not disposed to convene a conference unless there is substantial ground for an agreement. At the conference in March Java was the stumbling block, being unwilling to accept an accord which did not provide for the immediate and drastic reduction of tariff barriers, et cetera. Dr. Colijn’s letter to Mr. MacDonald opened the way for the British Government to ascertain exactly the desires of Java. Apparently Mr. MacDonald’s letter in reply requested specific and detailed information from the Dutch on a number of points.
There the matter rests. All efforts are now being bent to hasten Dr. Colijn’s reply to the British and to make it as satisfactory as possible. The opinion among sugar circles seems to be that if the reply is satisfactory the British will then convene another world conference.
- Walter E. Elliott.↩