611.176 Sugar/41

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

No. 167

Sir: The receipt is acknowledged of your despatch No. 593 of November 12, 1934,39 reporting the circulation of a rumor in Nicaragua to the effect that a quota of 9,000 tons of sugar for importation into the United States has been allotted to Nicaragua.

In reply, there is enclosed a copy of “General Sugar Quota Regulations, Series 1, Supplement 1” of the Department of Agriculture issued on October 9, 1934, which fixes the 1934 quotas for full duty sugar [Page 526] imported for consumption into the United States. You will note that the quota allotted to Nicaragua is 6,985,419.88 pounds, or something over 3,000 long tons.

The amounts of the full duty sugar quotas are of public knowledge; but, in view of the somewhat smaller quotas for the Central American Republics than had been hoped for by interested parties, it would not appear either necessary or advisable for the Legation to take any steps to make known to the public the amount of the Nicaraguan quota. In case you receive any direct inquiries in the matter, you are, of course, authorized to supply the requested information.

It is suggested that, in case the subject of Nicaraguan sugar quotas is brought up in any conversations you may have with Nicaraguan officials, you point out that sugar imported into the United States for re-export on a “drawback” basis is not subject to the quota and continues to be admitted into the United States in unlimited quantities. It is understood that the bulk of Nicaraguan sugar exported to the United States is of the “drawback” category.

Very truly yours,

For the Secretary of State:
Sumner Welles

[See also extract from instruction No. 120, December 21, 1934, to the Minister in Costa Rica, printed on page 92.]

  1. Not printed.