550.S1 Economic Commission/6: Telegram
The Chairman of the American Delegation (Hull) to the Acting Secretary of State 79
[Received June 28—5:10 p.m.]
75. One of the subcommittees80 of the Economic Committee is undertaking serious consideration of a proposal81 made by the Cuban delegation for an agreement between the sugar producing and consuming countries.
Under the original form of the Cuban proposal which of course is certain to be more or less revised in committee the producing countries are asked to agree to take for a period of 10 years various measures calculated to prevent an increase in sugar production such [Page 660] as a pledge that no new sugar factories will be constructed. No new subsidies are to be granted for production or export.
The proposal provides that tariff duties shall not be increased if they are now over 70 percent ad valorem and if they are under 70 percent they will not be raised over that figure before September 1935.
The main lines of the proposal received considerable support in committee discussion this morning although all the details will probably be revised. The British Government while dissenting from the proposed methods gave an indication that they would undertake to apply the plan for the British colonies. The British Indian Government, however, manifest obvious doubt as to the possibility of cooperating.
Ferrara,82 who introduced the scheme is eager to have indications of American support.
Please instruct the delegation as to the position it should take. It would help to guide the delegation if it were informed as to the present situation in regard to the plan for the allocation of the American sugar market that was under discussion some weeks ago and in connection with which I understand a Cuban mission is arriving in Washington today. At first glance it would appear as if this broader proposal is shaped in such a way as to assist rather than to hinder the general purposes underlying the scheme that has been under discussion in the United States.
It is expected that proposals for the international regulation of the production or exchange of wine and of lumber will be presented next and if you have any instruction in regard to these please transmit them as soon as possible.