837.61351/6–2047: Telegram

The Secretary of State to the Embassy in Cuba


290. Hearings start tomorrow morning draft sugar bill having full support all segments domestic sugar industry, strong approval Agriculture, and concurrence State. Sec Agri Anderson will testify in behalf Administration. Pertinent provisions:

Cuba assured, at any level of consumption, no less than would receive under Section 202(b) Sugar Act of 1937.
Cuba will receive 95 percent of Philippine deficit.
Cuba receives all domestic deficits when consumption is below seven million tons and shares therein with other domestic areas if consumption above that level.
Domestic areas guaranteed 1,800,000 tons; mainland cane, 500,-000; Hawaiian 1,052,000; Puerto Rican 910,000; Virgin Islands 6,000; Philippines 952,000. These amounts, which are in short tons, constitute both floors and ceilings and Cuba gets 98.64 percent of difference between these amounts and total consumptive requirements. Accordingly, Cuban share increases as US consumption rises and is never less than amt under 1937 Act.
Cuban refined quota 375,000 tons, unchanged.
Section 202(e) reads as follows: If the Secretary of State finds that any foreign country denies fair and equitable treatment to the nationals of the United States, its commerce, navigation or industry, and so notifies the Secretary (Agri), the Secretary (Agri) shall have authority to withhold or withdraw any increase in the share of the domestic consumption requirements provided for such country by this Act as compared with the share allowed under Section 202(b) of the Sugar Act of 1937.

Dept believes this bill if enacted will give Cuba most favorable treatment possible. Alternative was one-year extension which would have given Philippine deficit to full-duty countries.

Cuban Emb advised informally of pertinent points except 202(e). Strategy of tariff reduction will be discussed in subsequent telegram to USDel Geneva.

Repeated to Geneva.