308. Editorial Note
In the early morning hours of July 6, the last day before the Congress recessed for the Democratic and Republican Presidential conventions, it passed legislation amending the Sugar Act of 1948, as amended, and extending the Act for 3 months beyond its expiration date of December 31, 1960. Had Congress recessed without action on this legislation, Cuba could have sold the remaining 25 percent of its annual 1960 quota at the U.S. domestic price of about 2 cents per pound above the world market rate. The legislation as passed specifically provided that the President should determine the new quota for Cuba for the balance of 1960 and for the first 3 months of 1961, and provided a formula for reallocation of the old Cuban quota. The Eisenhower administration had requested from Congress broad discretion in allocating the reductions in the Cuban quota, but because of the need to demonstrate disapproval of the Castro government, the President signed the legislation with its rigid formulas for reallocation.
Under the terms of the new legislation, the President was authorized to import sugar to meet the needs of U.S. consumers in amounts not exceeding the amount by which the Cuban quota was reduced. Under Congress’ formula, the first reallocation was to be made to countries with quotas between 3,000 and 10,000 tons—Haiti, the Netherlands, China, Panama, and Costa Rica—to bring their total imports to 10,000 tons each during the calendar year. Next, the Act provided that 15 percent of the remainder of imports was to be purchased from the Philippines. The balance of the allocations were to be purchased from countries other than the six above which had quotas in the U.S. market. These purchases were to be prorated according to their established quotas. Countries in this category were Mexico, Peru, Nicaragua, and the Dominican Republic. If additional sugar was required, the President could under the terms of the new legislation authorize purchase from any foreign producer without regard to allocation.
President Eisenhower announced on July 6 that he was reducing the Cuban sugar quota from 739,752 to 39,752 short tons. In addition, Cuba was denied a quota of an additional 156,000 tons—its share of the Puerto Rican and Hawaiian deficit, and any share occasioned by increased U.S. domestic consumption, approximately 150,000 tons. In all, the Cuban sugar quota was reduced by 1 million tons. (Department of State, Current Economic Developments, No. 602, July 19, 1960)
The act to amend the Sugar Act of 1948, as amended, P.L. 86–592, approved July 6, 74 Stat. 330, is in American Foreign Policy: Current Documents, 1960, pages 797–798. Eisenhower’s proclamation reducing the Cuban quota is ibid., pages 205–206.