561.35E1/731: Telegram

The Secretary of State to the Minister in the Netherlands (Gordon)

110. Your No. 185, September 21, 6 p.m. You may inform Dr. Hart that the President’s proclamation suspending the quota provisions of the Sugar Act of 19371 was taken in view of a domestic emergency which developed at the outbreak of the war on account of hoarding by housewives and speculative activities in the sugar market. This action was taken without reference to the International Sugar Agreement concerning which no policy has yet been adopted and no statement is contemplated in the immediate future. It would seem that the future of the machinery set up by this agreement would depend (a) upon future political developments in Europe and (b) upon whether the parties thereto who are now belligerents decide to avail themselves of the provisions of Article 51 (a) of the agreement.

Hull
  1. Act approved September 1, 1937; 50 Stat. 903.