Speech #920023495

For many years it has been the policy of the U.S. Government to preserve within the United States the ability to produce a substantial portion of our sugar requirements. In earlier years protection of our domestic producers was provided by a tariff policy. then. in 1934 a quota system which protected the domestic market by quotas for both domestic producers and foreign suppliers was enacted. This quota system was revised in 1937 and further revised in 1948 under the present act. The House Agriculture Committee report on the sugar program of December 31. 1920. states on page 29 thatIt is unlikely any significant quantity of sugar would be grown in the United States if American producers had to compete on the open world market with sugar produced with cheap tropical labor or under subsidy in other countries. The committee report highlights the economic fact that the U.S. price is above the world price and. therefore. under the quota. any country trading with us does therefore receive a form of economic aid.