235. Information Memorandum From the Assistant Secretary of State for Economic Affairs (Johnson) to Secretary of State Rusk1
SUBJECT
- Sugar Legislation
The President advised the leadership this morning that he would like to see a simple six-months’ extension of the foreign provisions of the sugar law. No marketing relief for domestic growers nor acreage controls would be provided.
In your memorandum to the President of September 18,2 you indicated that the Department would be prepared for a simple one-year extension without marketing relief for domestic growers. We and Under Secretary Murphy agreed to a suggestion by Mr. Feldman that we settle for a six-months’ extension. Even though this will most probably prove unacceptable to domestic beet growers, a one-year extension would have been even more unacceptable.
The mechanics of proposing the six-months’ extension have not been worked out. The White House is to discuss the matter with Chairman Cooley. The Chairman may yet decide to have no part of this sugar legislation if the domestic growers adamantly oppose it. We cannot yet, therefore, safely say that there will be sugar legislation this year.
The Administration’s position—legislation with no marketing relief now—is a setback to domestic growers. It may help when sugar legislation is considered again next year. It will make them more willing to accept sharp acreage cutbacks in exchange for marketing relief which by then they will genuinely need. The domestic growers may be more tractable in the future because of their failure to have their way this year.