561.35E1A/1424: Telegram
The Secretary of State to the Ambassador in the United Kingdom (Winant)
2331. To Delegate to Sugar Council. The subject of your telegrams numbers 393, January 15, and 1269, February 15, has been discussed at a meeting of representatives of the Departments of State, Agriculture and Interior. The fact that the sugar agreement is in [Page 991] large part inoperative under present war conditions and may not, owing to war dislocations of production and distribution, be fully adapted for dealing with international sugar problems after the war would appear to be an argument for termination of the agreement. On the other hand, the present agreement was the culmination of long efforts to establish some stability in the world sugar situation which was in a state of chaos in the early 30’s, and its termination would be viewed with great apprehension by the sugar exporting countries of this Hemisphere unless they had some assurance that their pre-war position in the international trade in sugar will be maintained. Furthermore, since sugar production in the non-preferential areas has been expanded in the interest of the war effort it would be only equitable to provide some assurances that such areas will not have to bear an unduly large part of the burden of post-war production readjustment.
It is considered important, therefore, that if the international sugar agreement is terminated the proposed sugar advisory committee should be assigned explicitly the function of formulating recommendations regarding such post-war international arrangements in respect of sugar as may be required and that under any new arrangement the position of non-preferential sugar producers should be at least as favorable as under the present agreement. The Department would appreciate having the views of the British regarding the above proposal before reaching a final decision with regard to this Government’s position on termination of the sugar agreement.