The Secretary of State to the Chargé in Nicaragua (Dawson)

No. 123

Sir: Reference is made to your despatch No. 366 of August 1, 1934,28 with regard to the possibility of giving Nicaragua a sugar quota in connection with the negotiation of a trade agreement.

From the last paragraph of your despatch the Department gathers the impression that the belief is held in Nicaragua that the Costigan-Jones sugar legislation29 places quota restrictions on the importation of all types of sugar in continental United States, whether “drawback” or sugar for consumption purposes. In order that you may have the [Page 518] views of the appropriate department of this Government regarding this matter, there is enclosed a copy of a note dated July 10, 1934, from the Nicaraguan Legation31 inquiring whether “drawback” sugar is subject to any quota restrictions under the Costigan-Jones sugar legislation, together with a copy of the reply from the Department of Agriculture dated August 1, 1934.31

It will be noted that this latter communication states the opinion that foreign sugars which are imported into continental United States for “drawback” purposes will not be charged against the consumption quotas established by the Secretary of Agriculture for each respective country, but that an authoritative comment has been requested from the General Counsel of the Agricultural Adjustment Administration. Upon the result of further advice, an instruction will be forwarded the Legation about this matter.

Very truly yours,

For the Secretary of State:
Sumner Welles
  1. Not printed.
  2. Approved May 9, 1934; 48 Stat. 670.
  3. Not printed.
  4. Not printed.