561.35E1/342: Telegram

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

17. Subcommittee of House Agricultural Committee recommended freezing Cuban quota at 1,820,000 tons and full-duty countries at 25,000 with no sharing by foreign countries or Cuba in deficits of any domestic area which any other domestic area can supply. Minimum [Page 940] continental quotas fixed at 440,000 for cane and 1,550,000 tons for beets on basis consumption of 6,528,000 tons. No sharing in increased consumption by foreign countries or Cuba is provided for and entire increase over base of 6,528,000 tons is allotted to domestic areas. Philippine quota frozen at duty-free quantity consequently no deficit of dutiable Philippine sugars is made available for allotment to full-duty countries. Full committee began consideration of subcommittee’s recommendations yesterday. Administration standing by draft legislation recommended by Secretary of Agriculture on April 8, 1937, and plans actively to present its views before the Committee.

In view of this development and the uncertainty as to the eventual outcome of the sugar legislation, please keep Department fully informed as requested in paragraph 1, our 15, April 26, 7 p.m., in order that Department may be in a position to instruct you with regard to

[Here follows a summary of the draft agreement.]