Statement on Signing Sugar Industry Legislation.

ON FEBRUARY 8th last, I sent to the Congress a message setting forth certain facts and problems pertaining to the sugar industry. I said then that "the problem is difficult but can be solved if met squarely and if small temporary gains are sacrificed to the ultimate general advantage."

I have today signed H. R. 8861 which I am advised will permit a rapid approach to the solution of the many vexing and difficult problems within the industry. I hope that this Act will contribute to the economic improvement in Hawaii, Puerto Rico, the Virgin Islands, the Philippines, Cuba and among continental sugar producers. These are the objectives outlined in my message to the Congress last February.

Under the terms of the Act, the rate of the processing tax shall not exceed the amount of the reduction on a pound of sugar raw value of the rate of duty in effect on January 1, 1934, as adjusted by our commercial treaty with Cuba.

Acting upon the unanimous recommendations of the United States Tariff Commission, I have today signed a proclamation, under the so-called flexible tariff provisions of the Tariff Act of 1930, reducing the rate of duty on sugar. Using 96 degree Cuban sugar as the unit of measure, this results in a reduction of the duty from 2 cents to 1 1/2 cents a pound on that sugar. The rate of the processing tax must not exceed the amount of the reduction as adjusted to this unit of measure.

This means that the processing or compensatory taxes will not increase, in themselves, the price to be paid by the ultimate consumers and at the same time our own sugar producers will have the opportunity to obtain in the form of benefit payments, a fairer return from their product.

To cooperate with the Secretary of Agriculture in carrying out the provisions of this Act, I have designated an informal committee' from the Cabinet. This committee includes the Secretary of

Agriculture; the Secretary of the Interior, who is charged with the administration of Hawaii and the Virgin Islands; the Secretary of War, who is charged with the administration of Puerto Rico and the Philippine Islands; and the Secretary of State, who is charged with the conduct of our negotiations with Cuba.

Those engaged in this industry have an opportunity to improve their economic status through operation of this Act. I urge their cooperation in carrying out its provisions. To Help the Sugar Industry the processing tax must not exceed the amount of the reduction as adjusted to this unit of measure.

This means that the processing or compensatory taxes will not increase, in themselves, the price to be paid by the ultimate consumers and at the same time our own sugar producers will have the opportunity to obtain in the form of benefit payments, a fairer return from their product.

To cooperate with the Secretary of Agriculture in carrying out the provisions of this Act, I have designated an informal committee 'from the Cabinet. This committee includes the Secretary of

Agriculture; the Secretary of the Interior, who is charged with · the administration of Hawaii and the Virgin Islands; the Secretary of War, who is charged with the administration of Puerto Rico and the Philippine Islands; and the Secretary of State, who is charged with the conduct of our negotiations with Cuba.

Those engaged in this industry have an opportunity to improve their economic status through operation of this Act. I urge their cooperation in carrying out its provisions.