561.35E1/289: Telegram

The Chairman of the American Delegation ( Davis ) to the Secretary of State

12. My April 10, 4 p.m.15 In the pending sugar legislation16 provision is made for the establishment of import quotas for 27 foreign countries which have heretofore supplied some full duty sugar to the United States. This provision is carried forward from the existing Sugar Act. If an international agreement is reached with respect to sugar which would result in prices in world markets in line with the price of full duty sugars in the United States, it would seem to be unnecessary to continue these individual quotas for full duty countries. It would seem to me that one full duty quota could be established for all full duty countries. This full duty quota would include the full duty sugar from the Philippines and any foreign country and in accordance with Wallace’s17 proposal, your 6, April 10,4 p.m.,15 would amount to approximately 100,000 short tons. Such an arrangement would be more in lie with your trade policy18 and effort to abolish quotas and also with the apparent preference here to abolish import quotas on sugar and to regulate the market supply by export quotas.

  1. Not printed.
  2. The Sugar Act of 1937 was approved September 1, 1937; 50 Stat. 903.
  3. Henry A. Wallace, Secretary of Agriculture.
  4. Not printed.
  5. See pp. 826 ff.