SUGAR AGREEMENT

Nelson Evening Mail, Volume LXXI, 29 April 1937, Page 8

SUGAR AGREEMENT

MAINTENANCE OF FREE MARKET INCREASED CONSUMPTION TO BE PROMOTED BASIC QUOTA FIGURES [United Frees Association—By Electric Telegraph—Copyright] (Received 29t.h April, 1.30 p.m.) LONDON, 281 b April. The Sugar Conference issued a communique announcing that a stage bad been reached where it was possible to indicate (he main lines of the agreement to be embodied in the convention. It says the aim is the maintenance of a free market and the extension of it by promoting increased consumption. It is proposed that the agreement will run for five years. The delegations agreed on basic quota figures, with a special arrangement for the first year. Some countries are willing not to use parts of their quota for 1937-38 and it is also expected that some will be unable to export the whole of the allotted quota during the first year, but all exporting countries agree in the first two years to a general and proportionate reduction of quotas, not exceeding 5 per cent per year. If a permanent controlling body is to be established, and decides this is necessary, or on the contrary, if the requirements of the free market exceed the aggregate quotas, the permanent body may increase all quotas proprotionately. - The communique adds: “The quotas are not so restricted as to arouse fears that supplies will be inadequate, or prices forced up unduly to prejudice consumers.”