264. Memorandum of a Conversation, Department of State, Washington, March 29, 1955[1]

SUBJECT

Sugar Legislation

PARTICIPANTS

Dr. Gabriel Hauge

Agriculture

Mr. McConnell

Mr. Myers

State

Mr. Holland, ARA

Mr. Waugh, E

Mr. Cale, AR

Mr. Callanan, IRD

The greater part of the meeting was taken up by a discussion of various statistical tables prepared by State and by Agriculture. The tables showed the relative position of Cuba under the present law, the domestic industry's proposal, and proposals advanced by State and Agriculture.[2] The significant items mentioned during the remainder of the discussion are as follows:

(1) Dr. Hauge said he had discussed our last meeting with Governor Adams and with the President. The President remembered previous meetings with the sugar industry and Congressional leaders. Dr. Hauge commented that the President seemed to be less rigid in his position than was indicated in his handwritten note of January 27.

(2) Mr. Holland said that in considering the quota which Cuba would have under the various proposals it was necessary to keep in mind that they all overstated Cuba's position. He felt that it would be necessary to do something substantial for the full duty countries, and thus the various figures under discussion were all too high by any amount that would ultimately be given to the full duty countries.

(3) Mr. McConnell said he had discussed the problem with Secretary Benson before coming to the meeting. Mr. Benson had instructed him that if any figure over 8.3 million tons was selected he was not to agree but to refer the matter back to Mr. Benson.

(4) Mr. Waugh reminded the group that there was some merit in the industry's contention that the Administration seemed to be taking a long time to arrive at a position on sugar legislation. He pointed out that it was on January 27 that the President had instructed the Departments of State and Agriculture to start work on legislation.

(5) Dr. Hauge said he had no authority to come to a decision on the problem today. He asked Mr. McConnell to brief Mr. Benson on where the matter stood and asked Messrs. Holland and Waugh to brief Mr. Hoover. Dr. Hauge said he believed a meeting between Mr. Benson and Mr. Hoover tomorrow would be desirable. He would discuss the problem with Governor Adams but did not want to take it up with the President unless it proved impossible to get a decision any other way.

[1] Source: Department of State, Central Files, 811.235/3‑2955. Confidential. Drafted by Callanan.

[2] See footnote 4, infra.