561.35E1/374: Telegram

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

26. Your 44, May 5, 11 a.m., last paragraph. This Government cannot, of course, accept any limitation as to its liberty of action regarding the amount of the increase of any imports of sugar as defined in paragraph (c) of Chapter 3, Article 2, which it may deem necessary.

To charge any net increase in United States quotas allotted to full duty countries under paragraph (c) to the basic export quotas of such countries would restrict by that amount the total amount of sugar to be delivered on the world market and would be a net curtailment in the supplies established as necessary for that market.

I feel that the matter of limitation suggested by the Netherlands Delegation is one which should be determined by negotiation between the delegations of Peru, the Dominican Republic, etc., and the delegations [Page 946] supporting the Netherlands contention, and that in so far as possible this Government should avoid taking part in the determination of the problem presented.