452. Telegram From the Department of State to the Embassy in the Philippines1
47. Agriculture will shortly announce that 110,000 tons of sugar will be purchased from Philippines under new Sugar Act. Inform appropriate officials immediately and express strong assumption on part officials here that GOP will seize this opportunity to correct present disturbing situation namely that Philippine sugar in bond here or en route is covered by export licenses properly issued by GOP but entry not possible prior to additional import authorization because present quota already filled by prior entry other improperly validated export licenses issued by GOP this year and last. Failure to correct [Page 967] situation now could prove increasingly embarrassing to Philippine officials and bring Philippine sugar interests into disrepute among US trade.
FYI. US has no means nor responsibility for checking validity of export licenses issued by GOP. US responsibility ends with ascertaining whether sugar is of Philippine origin and thus eligible for entry against Philippine quota under US law. End FYI.
FYI. Dept has been informed that Representative Cooley, Chairman, House Agriculture Committee, received cable from President Garcia expressing appreciation for stand taken in recent amendments Sugar Act, particularly provisions Philippine sugar. Cable also specifically expressed appreciation Philippine tobacco producers. End FYI. This has led Representative Cooley to believe there is a willingness in Philippines to improve access US tobacco at this time. Embassy should encourage this development without relating it to sugar purchases and report prospects tobacco action Philippines soonest.
- Source: Department of State, Central Files, 411.9641/7–1360. Official Use Only; Priority. Drafted in OR/CSD; cleared with FE, SPA/E, CPT, and the Department of Agriculture; and approved by Clarence W. Nichols.↩