250.
Memorandum From the Assistant Secretary of State for Economic Affairs
(Waugh) to the Under Secretary of State (Hoover)[2]
Washington, January 25,
1955.
SUBJECT:
The marketing of sugar in the United States is
controlled by quotas imposed on our domestic producers as well as foreign
countries (primarily Cuba) by the Sugar Act of 1948,[3] as amended. This Act
expires December 31, 1956, however various segments of the domestic industry
have been trying to reach agreement on a legislative proposal to amend the
Sugar Act at this session of Congress. The beet sugar producers and the cane
sugar producers have reached an agreement but so far a third important segment,
the east coast refiners of foreign sugar, are unwilling to go along. The
domestic sugar beet and sugar cane producers want increased quotas effective
this year as their present productive capacity is in excess of the quantity
they may legally market.[4] Any increase in domestic quotas will of course
reduce Cuba's sales in this market. Cuba is already burdened with excess
supplies and a shrinking world market.
Last week representatives of the beet and cane areas
met with Secretary Benson and asked him to agree that (a) this session of
Congress is the appropriate time for sugar legislation and (b) that he should
take the lead in preparing legislation acceptable to the Executive Branch and
the domestic industry. We are informed that Mr. Benson agreed subject to White
House approval. On Friday of last week the same representatives of the industry
met with Mr. Holland and me.[5] They asked for our favorable consideration of
the same two points they had raised with Mr. Benson. They were told that we would
study the proposal.
[1] Continued from Foreign Relations, 1952‑1954,
vol. IV, pp. 867 ff.
[2] Source: Department of State, Central Files,
811.235/1‑2555. Drafted by Callanan.
[3] P.L. 388, enacted August 8, 1947; for text, see
61 Stat. 922.
[4] The sugar industry's proposals were discussed by
Cale in a memorandum of January 13 to Holland. Cale wrote in part: "In
summary, the current proposal is for an initial increase in the fixed domestic
quota of only 75,000 tons and a 55% share of any increase in consumption above
that level for domestic growers. This compares with a proposal last year for an
increase of 115,000 in domestic quotas in 1955, a further increase of 110,000
tons in 1956, and a 55% share of all increases in consumption after 1956."
(Department of State, Central Files, 811.318/1‑1355)
[5] Details of this meeting held on January 21, were
described in a memorandum of conversation of the same date by Callanan. (Ibid.,
811.235/1‑2155)