Evening star., 1934-01-14
PLANS FOR SUGAR
QUOTAS PROGRESS
Solution of Domestic Situa-
tion Held Necessary Prelude
to World Agreement.

(Copyrisht, 1884, by the Associated Press)
Only mildly interested in prospects
for an international sugar agreement.
farm officials yesterday went ahead
with plans which included making the
politically explosive product basic ag-
ricultural commodity and for another
stabilization pact.
President Roosevelt has said this
country would be glad to participate in
an international discussion which had
sugar as its theme. but the State De-
proposed was predicated on getting the
domestic situation in hand.
This is the immediate concern of
the Farm Adjustment Administration
and its program has been drawn, al
though it may be modified in specific
instances.
White House approval has been given
to the basic commodity idea and tenta-
tive plans for benefit payments to
sugar producers, but the Farm Admlni-
stration hasn't yet received full clear
ance on a quota arrangement which
is being prepared for submission to
the President
The sugar pact which Secretary Wal
lace turned down last year included
quota arrangement which limited the
amount of sugar for the domestic mar
ket from the various producing inter-
ests to around 100000 raw tons a
year.
Wallace Saw No Gain.
WaIlace's Observation-Disclosures by
some groups, applauded by others-was
that any benefit to the sugar growers
of this country would be more than
offset by increased cost to consumers.
rr1l- % ,fat ttvra cfo hi p
ton agreement for this year will differ
considerably from the discarded pact,
and the entire quota will allow at least
300 900 fewer raw short tons-and per-
haps q good many more-to be mar
keted in the continental United States
The starting point for quotas this
year will be an allowance to Cuba SUI
ficient to improve the economic condi-
tions of the islands.
Officials said yesterday that fair
quota to Cuba was imperative. both
from the standpoint Of justice and ad-
ministration policy. and that domestic
interests that wished to disregard the
interests of the islands were short
sighted
At that, the Cuban quota probably
will not be more than 100000 tons,
although all figures are tentative.
1neIe Is eXpeCleO 10 De llllle 0lSpOSl-
tion to reduce domestic beet and cane
products below the quota tentatively
assignd them in last years plan.
The reduction probably will come
from the Philippines. Puerto Rico and
Hawaii.
Farm officials emphasized yesterday
| that they could give no assurance that
domestic producers would get any real
help this year. unless sugar were made
q basic agricultural commodity
| Senator Costigan. Democrat. OF Colo
RADIO, has already introduced bill with
that in view. and the Farm Admins
tration will do what it can to see that
the measure goes through. 1t hopes
and expects-White House support.
II sugar were made a basic agricul-
tural commodity. benefit payments
could be made to beet and cane growers
who would agree not to increase pro-
duction this year. They may be guar
anteed parity prices for the beets and
cane they grow. 1t has been estimated
that $4,000 900 would virtually assure
| a parity price to the domestic producers.
The funds would come from the pro-
cessing tax which may be levied on
basic commodities
Farm officials said yesterday there
were indications that the tariff on
Cuban sugar would be lowered whether
there was sugar agreement. or wheth-
er the sweet was made a basic COM
modify. The President has power to
reduce the duty by so per cent
Benefit payments to domestic growers
they said. formed the only relief assur-
ance that could be given by the Farm
Administration, and they believed pro-
ducers would demand that sugar be
made basic commodity once this was
understood.
Processing Tax Suggested.
A half cent pound processing tax
on both domestic sugar and imports has
been suggested. This would raise about
$50. .000, 900.
This money might be used. officials
said, to pay benefits to Puerto Rican
and Hawaiian producers, in addition to
the payments to this country's beet and
| cane growers
now. they said, but that Territory might
be willing to have its quota reduced
100000 tons from that suggested last
year In return for an assurance of q
better market.
Puerto Rico, they said, needs a gen.
eral overhauling Of its farm system
since 1t grows too much sugar at the
| expense of other needed commodities
This Encouragement might reduce the
islaud quota 100000 tons.
The other 100000 tons might be
taken from the Philippine quota that
was proposed last year. although thi.
suggestion must be approved by the
White House before it goes very far
One reason for participation in ar
international sugar agreement woule
be to assure the Philippines an outlet
Tor its sugar surplus. This might rec.
oncile the islands to a reduced quota
But oflcials said they saw no pros.