259.
Memorandum of a Conversation, Department of State, Washington, February 17, 1955[1]
SUBJECT
Sugar Legislation
PARTICIPANTS
Mr. Waugh, E
Mr. Hoyt, MID
Mr. Callanan, IRD
Mr. McConnell opened the meeting by saying that he
had come over to the State Department today to see just what could be worked
out with regard to sugar legislation. He understood that State felt it had a
clear indication from the White House as to the President's wishes. Mr.
McConnell said that Agriculture did not feel that it was clear what the
President said or whether he meant exactly what he said. He noted that of 26
Senators at the meeting there were 26 versions of what the President said. Mr.
Waugh reminded him that he had discussed the meeting with Dr. Hauge who had
been present.
Mr. Waugh referred to a breakfast meeting he heard
that Secretary Benson and Under Secretary Morse had with the President.[2] He
asked Mr. McConnell if they had discussed sugar legislation and if so what their
understanding was as to the President's feeling. Mr. McConnell replied that
Messrs. Benson and Morse had come away from the White House with the feeling
that if State, Agriculture and the industry could get together on a reasonable
proposal for legislation effective before 1957 that the President would not
object.
Mr. Waugh made it clear that State was in favor of
legislation this year and had no objection to sharing increases in consumption.
He remarked that the only point of difference between the two Departments
seemed to be when new legislation would be effective. Mr. McConnell agreed this
was so. He went on to say that it was utterly impossible for him to open
negotiations with the industry on the basis that nothing could be done for them
until January 1, 1957. He remarked on the great political strength of the sugar
interests, and said that if he were asked he could not advise the President to
refuse consideration of an effective date before 1957 without pointing out to
him that the President should carefully weigh the political difficulties which
would result. Mr. Waugh agreed that an effort should be made to avoid political
difficulties for the President. Mr. McConnell indicated he was receiving
numerous telephone calls from Senators and that they not only felt strongly but
were highly emotional about sugar legislation.
Mr. McConnell said he thought the thing to do was to
get the President to indicate that he preferred not having any legislation
effective before 1957, but that if State, Agriculture and the industry could
agree on a reasonable proposal effective before 1957 he would not be opposed.
Mr. McConnell pointed out that we would then be in a strong negotiating
position with the industry if they knew in advance that the President would
only consider legislation under these terms. Mr. Callanan told Mr. McConnell
that he should be aware that State had always put a great deal of emphasis on
the desirability of allowing legislation to run its course. He outlined the
situation in 1951 when State had agreed to a large increase in the Puerto Rican
quota only because Agriculture, as a part of the bargain, agreed that the
change would not be effective until the 1948 Act expired?
Mr. McConnell suggested that State consider whether
Cuba might get a better deal by our making some concessions to the domestic
industry at this time rather than by our insistence on the present Act running
its course. He pointed out that the domestic industry could put legislation
through the Congress on their own terms whether the Administration liked it or
not. He said it was never wise to win a skirmish and wind up losing the battle.
Mr. Waugh conceded that this was a point which deserved careful consideration.
Mr. Waugh asked Mr. Hoyt if he believed Mr. Holland
could be persuaded to change his present position. Mr. Hoyt said that it would
be necessary to know what compensating factors there were which would convince
Mr. Holland a change was desirable. Mr. Hoyt went on to describe the difficult
political situation in Cuba and said that legislation injurious to Cuba's
interests could well overturn the new constitutional government.
Mr. Waugh agreed that he would ask Mr. Hoover
tomorrow for his views on whether State should join Agriculture in an effort to
moderate the present White House position.
[1] Source: Department of State, Central Files,
811.235/2‑1755. Official Use Only. Drafted by Callanan.
[2] No record of this meeting has been found in
Department of State files or the Eisenhower Library.
[3] Reference is to the Sugar Act Extension of 1951
(P.L. 82‑140) enacted September 1, 1951; for text, see 65 Stat. 318. This
act raised the Puerto Rican quota from 910,000 tons to 1,080,000 tons, but this
provision did not become effective until December 31, 1952, when the Sugar Act
of 1948 expired.