Evening star., 1946-03-22
Sugar Quota Cui
Called Menace
ToPhi|ippines
225, ,000- on Slash
In Export to US.
Hits Future Economy
By Gould Lincoln

OHleSS Gne house ways ana
Means Committee reverses its
stand, the sugar quota of the
Philippine Islands-sugar which
may be admitted to the United
States free of duty-will be fixed
at 100000 short tons, $4,000
short tons below the prewar
sugar quota for the islands.
II this cut is retained in the bill
now being considered by the COM
mittee, it will deal a tremendous
blow to Philippine economy-since
sugar is the islands chief cash crop.
An effort will be made to obtain
reconsideration of the vote by which
the committee adopted this quota
provision. 1t is serious situation,
however, since the bill is expected
to be submitted to the House in
completed form Monday or Tues
day of next week.
Cuba and American interests in
Cuba are held responsible for the
proposed cut in the Philippine sugar
quota. A lobby in Washington has
been increasingly active and effec-
tive.
Would Not Aid Producers.
Opponents of the proposed reduc-
ton in the Philippine sugar quota
argue that such a cut would benefit
only the Cuban interests. 1t would
not be a benefit to producers in
the United States, but merely would
result in an increase in the potential
allotment for Cuba and other for
eign producers. Cuba, alone, of the
offshore producers of sugar has q
capacity of Unlimited production.
1t is more than a year since Ma
Mia was retaken from the jap
anese-but so far, Congress has done
nothing toward the rehabilitation
of the islands. Two measures, one
providing cash damages for the de-
struction and injury of persons and
property, due to japanese attack
and occupation of the islands, and
another to formulate trade rela-
tions between the United States
and the Philippines, which are to
1NSOAAiN ol1 4I4lCPC1lOCllI I'D
July 4, have been drafted.
The first bill. sponsored by Sena-
tor Tydings, Democrat of Maryland
has passed the Senate and is before
the House Committee on Insular
Affairs. 1t authorizes approximate
ly $500, 900, 900 to pay for damages
although it has been estimated
that these damages run as high as
billion dollars.
Comparison Measures.
The second bill, that of Repre-
sentative Bell, Democrat, of Mis-
souri,, is still before the House Ways
and Means Committee Because it
deals with the tariff, the measure
had to originate in the House.
These bills in reality are COM
panion measures. Money for reha-
bilitation of the islands and their
people-badly needed now-would
be wasted unless adequate provision
is made for future Philippine pro-
duction and trade. after the islands
become independent. 1t is essential
that the islands be put in position
where their economy can pick up
and advance.
Fallue to give the islands square
deal on the sugar question would be
a disastrous blow to the whole Phil
lppine economic setup.
Must Look to Future.
1t is true that the islands as of
today are not producing sugar
since the equipment was DESTROYED
during the war-and could not come
near filling the proposed quota. It
is, however, to the future that the
Filipino producers must look. and
since the United States is the great
potential consumer of Philippine
sugar-as it has been in the past
the quota set by this country is q
matter of Importance to them.
The Bell bill gives the islands the
benefit of eight years free trade
with the United States, and there
after a period of 25 years during
which the tariff duties will be in
creased on graduated scale. The
original Bell bill proposed 20 years
OF free trade for the Philippines.
with this country, and a complete
tariff adoption at the end of that
perlod-sink or swim proposition.
President Truman held confer
ence last November with represents
atives of the Philippine government,
the State Department, the Interior
Department, the High Commits
sioner, Paul v. McNutt, and Senator
Tydings and Representative Bell.
The result was a compromise, with
the 8-year free trade and 25 years
graduated tariff formula laid down.
Efforts May Be Rewarded.
Strenuous efforts to break the log
jam which has delayed this Philip
pine legislation have been made by
High Commissioner McNutt. 1t looks
now as though these efforts would
bear fruit.
Some supporters of the proposal to
cut the Philippine sugar quota have
taken the position that, since i'm
portation of sugar from the Philip
pines was completely cut during the
war years, the processes of produc-
ton knocked out, there was no really
good reason for reviving the quota
on anything like the prewar scale.
The United States has been i'm
porting sugar from the Philippines
since the beginning of the present
&C. cSIIES