SUGAR QUOTAS

Evening Post, Volume CXXIII, Issue 100, 29 April 1937, Page 9

SUGAR QUOTAS

AGREEMENT REACHED

MAIN LINES INDICATED

FIVE TEARS' TERM

United Tress Association—By Electric Tela-

graph—Copyright.

(Received April 29, 1.10 p.m.)

LONDON, April 23.

A communique issued from the International Sugar Conference announces, that a stage has been reached where it is possible to indicate the main lines of agreement to be embodied in a convention. Tha communique siWs that the aim is to maintain a ivce% market and to extend that market by promoting increased consumption. It is proposed that the agreement shall run for five years. The delegations have agreed to basic quota figures, with a special arrangement for the first years. For instance, some countries are willing not to use parts of the quota for 1937-38. It ia also expscted that some will be unable to export the whole of the allotted quota during the first year, but all exporting countries agree to a general and proportionate quota reduction in the first two years not exceeding 5 per cent, a year if the permanent controlling body to be established decides that this is necessary.

On the contrary, if the requirements of a free market exceed the aggregate quotas the permanent body may increase all.the quotas proportionately.

The communique adds that the quotas are not so restricted as to arouse fears that supplies will be inadequate or that prices will be forced up unduly to the prejudice of consumers.