A.—6

stock, whereas the maximum consumption is some 27,000,000 tons. Already some steps had been taken towards bringing production into equilibrium with demand. In 1931 seven producing countries, representing 45 per cent, of the total production, agreed to regulate exports to a stated quantity and to create an International Sugar Council. But the effects of this had been offset by increased production in other countries, and " prices were still under one-third of the cost of production." To cope with the position a draft Convention was submitted under which the contracting parties would agree for a period of ten years, — (a) Not to start the construction of new sugar-factories ; (b) Not to increase the effective productive capacity of any of the factories now existing ; and (c) Not to rebuild the factories which on account of having been totally or partially dismantled have ceased to be active units of production. The Cuban proposal was supported, in some cases with slight qualifications in detail, by the representatives of the Governments of the Netherlands, Peru, Germany, Belgium, Portugal, Switzerland, the United Kingdom, and Brazil. The spokesman for India and the Union of Soviet Socialist Republics expressed themselves as unable to agree to the proposal. At the adjournment of the Conference the discussions on sugar (as on other commodities) had not reached finality, and the negotiations for an agreement embracing the various exporters and importers of sugar were left to the Bureau of the Conference, in consultation with the International Sugar Council, with the intention that a further meeting of the countries concerned should be summoned at an expedient date. Dairy Products. —Draft resolutions were submitted by the Polish and the Italian delegations, and these are reproduced in full:— Draft Resolution submitted by the Polish Delegation. " I. The Conference recommends that the Governments of butter-exporting countries should set up without delay an ' International Dairy Council' for the purpose — " (1) Of studying the means of reducing competition between the butter-exporting countries in general and on rationed markets in particular ; " (2) Of ensuring a better distribution of butter throughout the year, and prevent a glut at certain seasons and in certain markets. " (3) To study the possibilities of a better international standardization of butter. " 11. The members of the ' International Butter Council ' shall be chosen by the Governments taking part in this Council from among the persons occupied in the production of and trade in dairy products. " 111. The seat of the ' International Dairy Council ' shall be at London. The first meeting of the Committee shall be held on " Reasons in Support. " The fall in butter prices is becoming more and more disastrous, and constitutes a menace not only to a great number of farmers, but also to the whole dairy industry in certain regions. It is further doing the greatest harm to countries whose economy is dependent to any great extent on agricultural production. " This situation is brought about by various factors. General impoverishment has everywhere caused a fall in consumption of the produce of cattle-breeding in general and dairy products in particular, and the protectionist policy of the importing countries has often' been more implacable in this field than in the case of vegetable products. The abnormal fall in cereal prices has led to an overproduction of live-stock, which has accentuated the disequilibrium." Draft Resolution submitted by the Italian Delegation. " Whereas the question of dairy products cannot be studied separately, but must be taken in conjunction with all the other problems of agricultural economy, especially those connected with cereal growing, and in relation to the production and marketing of other edible fats, both vegetable and animals. Whereas there are already institutions which have dealt and are dealing specifically with these questions, in particular the International Institute of Agriculture and the International Dairy Federation. " The Commission recommends that the International Institute of Agriculture, in agreement with the International Dairy Federation and in liaison with the Economic Committee of the League of Nations, be asked to consider the best measures for the regulation and co-ordination of the production and marketing of dairy products."

12