305. Memorandum of the Legislative Leadership Meeting0
[Here follows a list of participants.]
SUMMARY
Sugar Act—Mr. Morse set forth the Administration proposal for extending the Sugar Act with new provisions, particularly providing some discretional authority to the President. It was the consensus that the matter of quotas or any general reapportionment of them should not be opened. There were differences of opinion as to whether action should be taken early or later in the session, but it was agreed that the Administration should proceed promptly to submit its recommendations.
[Here follow summaries of other unrelated issues discussed at this meeting.]
Sugar Act—Mr. True Morse described the interest of sugar producers, refiners, and consumers in accomplishing this legislation. Half of the usage, he said, was commercial. He noted that action on this would normally have occurred last session but had been postponed on the recommendation of State Department to await developments in Cuba.
Mr. Morse then outlined the provisions being recommended (see attached Fact Sheet1), emphasizing two things: (1) the new provision which would foreclose later fulfillment of a quota after it had been declared a deficit and reallocated by the Secretary; (2) a new provision whereby the President could reduce the quota, for no more than one year, of any foreign country except the Philippines should he determine [Page 628] that a shortage exists or that there is need to assure the supply. Mr. Morse said that Rep. Cooley objects to the latter as a giving up of a power of the Congress; however, since the power was limited to one year, the Congress could act to change quotas whenever it saw fit, and the need did exist for the President to be able to act at such times as Congress was not in session or might find it embarrassing to deal with the issue.
The President inquired about the provisions by which 96% of any Puerto Rican or Virgin Island deficit would be allocated to Cuba. Mr. Morse said this was merely to continue existing practice, and that there is a great desire not to open up the matter of quotas among foreign countries in the light of the extreme lobbying of 1955. Also, to open up foreign quotas would reopen the domestic situation, whereas the industry is now agreeable to the proposal as it stands. He noted the complication that new areas of production would add to the quota question if opened up.
Mr. Halleck asked about timing. Mr. Morse said there were differences of opinion, but the matter had to be handled this session and probably should not be left to the last minute. Mr. Halleck thought it might be more easily handled at the end of the session. Mr. Morse said it would take quite a while to get to the Floor in any event. Sen. Williams had doubts about awaiting the end of the session. The President said this was something for the Leaders to discuss and settle. It was agreed that the Administration submission should be made promptly in any event.
Sen. Dirksen said the bill would give rise to great discussion of the Cuban situation when it gets to the Senate. Sen. Bennett recalled that this had been handled on a bipartisan basis in the past, but that Senator Ellender objects to the authorization for the President, hence it should be submitted as an Administration bill this time. Sen. Bennett suggested that some sort of a compromise might be possible by stipulating that Congress would have power to review such a Presidential determination if it were in session. Mr. Herter thought this would make the situation much more difficult for the President if he ever found it necessary to use the authority. Sen. Bennett continued to be interested in the possibility of trying to develop some mutually agreeable language. The President thought that the most important thing was to get agreement on a decent length of time for which this bill would be extended, especially since there had been so many comments about drastic limitation of the time.
Mr. Herter called attention to Articles 15 and 16 in the 1949 Treaty, ratified by the Senate, creating the Organization of American States. These Articles denied any right of a nation to intervene or threaten to intervene in the affairs of another member, and also prohibited coercive economic measures. The President felt that should [Page 629] any problem arise as to Cuban sugar being cut off, it could be argued that Cuba is interfering with the United States economy. Mr. Herter hoped, in view of Article 16, that there would be no clamor in the Congress for punitive measures against Castro.
Sen. Wiley noted that there were many complex questions involved, concerning domestic matters as well as foreign, and inquired if these had been studied. Mr. Morse replied affirmatively, and stated that all concerned felt that the quota question should not be opened up. Mr. Hoeven noted the disinclination in the House Agriculture Committee to do anything more than a short-term extension in view of Castro’s hostility toward the United States. He thought it might be best to get a closed Rule for whatever limited bill might be reported in the House, and let the Senate undertake any necessary modification. Mr. Halleck agreed that the situation would be difficult but that the Leadership would do its best.
Sen. Saltonstall asked if this constituted generally a great foreign affairs problem. Mr. Herter said no, that it was much more a domestic problem. He commented also that a straight one-year extension, without the additional authorization to the President, would be in effect helpful to Castro without accomplishing anything on domestic problems.
Mr. Byrnes thought it so desirable to avoid any great controversy over this, that every effort should be made to try to work in agreement with the Democrats. The President responded that a one year extension merely served to keep the pot boiling and that it would keep the sugar growers in doubt as to where they stood. If it were to be a one year extension, there would be all the greater necessity for the special authorization to the President. He hoped that Mr. Hoeven could be very persuasive with his colleagues.
It was agreed that the Leadership might announce after the meeting that the Administration would submit a bill designed to meet requirements of the industry and protect United States consumers. It was also agreed that Administration bills should be filed simultaneously in the House and the Senate even though the House must act first.
Sen. Dirksen asked about the consumption estimate set by Agriculture for the year. Mr. Morse said that it had been estimated—as a form of insurance—at as high a level as could be justified.
The Vice President thought it might be best to secure action on this as quickly as possible since the emotional trend was likely to increase. He asked the Secretary of State if there was any basis for assuming that the situation would improve in the near future. Mr. Herter said there was no evidence of such.
[Page 630][Here follows discussion of unrelated subjects.]