Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-05-09
Chadbourne Contract to As
sure Producers Fair Profits
and Protect Consumers.
GERMANY AND CUBA
AMONG THOSE AGREEING
Russia Omitted-Peru, Spain,
Italy and Others Are Ex-
pected to Join.
BY the Associated Press.

BY the Associated Press.
BRUSSELS, May 9.-The seven great
sugar exporting countries of the world
today signed the Chadbourne interna-
tional sugar contract which, they hope,
will assure producers fair profits and
at the same time guard the consumer
against unduly high prices,
Germany, Poland, Czechoslovskia,
Belgium Hungary, Java and Cuba
signed the agreement, which Thomas
L. Chadbourne Of New York brought to
successful conclusion after years of
effort. 1t is his own plan fer saving
the world sugar industry from the
evils of over-production by restricting
expectation.
With the pact at last an accom-
plished fact he turned ever its oper-
alton to Francis Powell, another
American, who has long been engaged
in business in Europe and is the inter-
national sugar counsel at The Hague.
Rigid Export Restriction.
The plan calls fer rigid restriction of
expectation by the signatory nations
and will result in an increase OF the
price of sugar to point which Will
make export profitable.
The present surplus stock Of $780,
900 tons will be segregated and If the
price goes too high part of 1t will be
released to world markets, thus bring
ing the price down for both producers
and consumers.
Mr.. Powell was authorized to begin
flInctioning Immediately. One of his
first duties will be to open negotiations
with a view to bringing into the inter-
national group Peru, Spain, Italy,
Rumania and the Dominican Republic.
Mr.. Chadbourne characterized today s
event as the opening of a new chapter
in postwar economic history.
We have set in motion a unique
expedition into a new field of world
economies" he said at luncheon
which followed the signing.
Senator Boudoun of Belgium. chair
man of the conference, paid tribute to
President Machado of Cuba as the
first executive to see the value of the
Chadbourne plan.
Commission of Russia.
Mr.. Chadbourne took cognizance Of
the fact that Russia Is not included In
the pact, but he expressed be Ief that
there is no great danger In tn ! omis-
sion.
so far" he said, "the menace of
Russian sugar dumping diminishes
with close examination of that coun-
try's international position. While
Russia may export a certain amount OF
sugar, the inevitable increase in its
own consumption plus its inability to
manufacture sugar and sell 1t abroad
at current world prices without great
loss, is expected to minimize the
possibility of wholesale dumping"
He said he hoped ether industries
might follow the lead of the sugar
business and make similar interna-
tional cooperative agreements, thus
moving closer to the 'as yet Elusive
economic recovery"
The Chadbourne plan assigns export
quotas to each of the signatory coun-
tries, and provides that when the price
of sugar reaches 2 cents pound fob.
Cuba the quotas would be increased by
S per cent. This would mean about
225000 tons in the aggregate for the
seven sicnatories.
A permanent international sugar
council is created which has an option.
whenever the price reaches ga cents. to
increase the export quota by an addi-
tional 212 per cent. If the price of
sugar reaches 81: cents after the Con-
troll Committee has availed itself of that
increase option, the export quota shall
be increased another 2l2 per cent.
If, however, the committee had not
made the increase when the price
reached 214 cents 1t shall be required,
when the price reaches gle cents, to In
crease the export quota full 5 per
cent.
No other increases are to be obligatory
during any one year Of the five years
for which the contract is made. Other
to be left to the option of the commit
tee, but at a price lower than 212 cents
no export quota increases other than
those specified are to be made.