Evening star., 1933-10-05
REJECT|0N0F SUGAR
AGREEMENT IS SEEN
Wallace viii Recommend AC-
tion on Grounds 1t Is Unfa-
vorabIe to u. S. Interests.

secretary OF Agriculture WdiIdCt Will
recommend to President Roosevelt re-
lection of the proposed sugar stabiliza-
ton agreement in its present form on
the ground that it is unfavorable to
American interests, according to a
copyrighted Associated Press article.
This was indicated definitely yester-
day as the Secretary continued an in
tensive study CT the pact which would
fix quotas to be supplied to the Ameri-
csn market from each of the principal
producing areas. These include do
mestic beet and cane. the Philippines,
Hawaii, Puerto Rico, Cuba and the
Virgin Islands
1t was reported that the Secretary
was of the opinion that the sugar agree
ment would result in heavy increase
in the cost of the staple comm dity to
American consumers without cOmmen-
surate increases to producers in this
country, the insular possessions and
Cuba
Secretary Wallace probably will pre-
sent his recommendations to the Presi-
dent soon.
Alternative Plan Drafted.
1t was understood that an alternative
set of proposals, modifying the present
pact, had been prepared and might be
presented by Wallace. But it was pos
sible. in view of the long and fruitless
negotiations, that all efforts toward an
agreement might be dropped by the
Farm Administration.
The sugar stabilization agreement has
been before the Secretary for about
two weeks and during that time an in
tenSive study of it has been made by
experts assigned to the task 1t is upon
their report and studies of his own that
Wallace has reached his conclusions.
The formula provided in the agree
ment for arriving at the price to be
paid for sugar in America has been
subjected to severe criticism. Estimates
have been made that it would raise
the cost of the sweet to domestic COLI
sumers by S40,000,000, or more, all
nually
The method for arriving at the price
to be paid for domeStically- consumed
sugar is complicated In brief. the New
York raw sugar price would be the
world price, the base for arriving at tie
latter being the Londor raw sugar mar
ket price. Allowances, however, would
be made for insurance, freight and
other costs between London and the
United States The result probably
would be an increase of about one
fourth cent a pound, over the London
price. The current rate Of exchange
would be taken into account in the
calculations.
All But Cuba Approve.
The sugar pact, the product of more
than four months of deliberation and
argument, was taken to Secretary Wal
lace by Dr. John Lee Coulter of tn.
Tariff Commission. The latter was
designated to work out an accord be-
tween the various groups. The agree
ment officials said, had been approved
by representatives OF all the interest
involved except Cuba.
The expectation among domestic
sugar interests was that Wallace would
approve the agreement without delay,
but it soon became apparent that lie
would sign it only after critical
study-if then.
Most of the controversy during the
drafting of the agreement centered N
quota allotmentS to the various pro-
ducing interests. The first hearing On
the pact ended in confusion because Of
quarrels over quotas A second hearing
was held but reconciliation of diver
gent views seemed impossible unless
further revision was undertaken. Pres
ident Roosevelt. himself told Coulter to
see if a compromise could not be ar
rived at.
AS it stands at present. the agree
ment would be retroactive to July l
and would limit the amount of sugar /!
which might be sold in the United /,
States to around 100000 raw short |
tons annually.
Cuban Share is 1900, 900 Tons. !
Cubas tentative share of the total
would be 100000 tons: the Philippines, /
! 100, 900 tons; United States beet sugar |
areas, 1.7500O0 Hawaii, 975 900: Puerto |
Rico, 875.000:' Louisiana, 250000; Flor
ida. 10000; Virgin Islands, $4,000.
This represented an increase of |
around 100000 tons over the quota first |
assigned to Cuba, but officials appar- |
emily lack word on whether the 2,000,-
600 would be acceptable to the present !
Cuban government. The quota for re- |
fined Cuban sugar was set at 250,000 |
tons to be deducted from the 100000 |
Refining interests on the island and |
in this country protested the refined
allotment.
In 1929 Cuba exported 1851 ,206 tons
of raw sugar to the United States. In |
1880 the tariff on Cuban sugar was in 7
creased and last year Cuban exporta-
tions had dropped to 1,762 $50.
During the time the proposed pact /
has been before Wallace, domestic in /
terests have brought pressure to bear |
upon the Secretary in an effort to have |
him approve it. They sought the aid |
of several Senators from beet areas and |
the contention was made that all con-
cerned would be benefited if the agree /
ment went into effect.
Deliberation, however, convinced |
Secretary Wallace that further revision
was necessary before he would inform