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Calendar No. 1482 
84ru ConGREss 
SENATE 
| 
Report 
9d Session 
No. 1461 
EXTENSION OF SUGAR ACT OF 1948 
January 26 (legislative day, Januany 16, 1956).—-Ordered to be printed with an 
illustration 
Mr. Byrp, from the Committee on Finance, submitted the following 
REPORT 
[To accompany H. R. 7080] 
The Committee on Finance, to whom was referred the bill (H. R. 
7030) to amend and extendjthe Sugar Act of 1948, as amended, and 
for other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as amended 
do pass. 
MAJOR PROVISIONS 
The accompanying bill reenacts and extends for 6 years, to Decem- 
ber 31, 1962, the Sugar Act of 1948, as amended, with further amend- 
ments dealing primarily with adjustments 
of quotas intended 
to 
restore to domestic producers their historic share in the growth of the 
United States sugar market and to revise the participation by foreign 
suppliers in this market. 
The present act, in the absence of any 
action by the Congress, would expire December 31, 1956. 
The bill also extends for 6 years, to June 30, 1963, the excise tax 
on sugar in the Internal Revenue Code. 
. The revenues from this tax 
exceed costs to the Government under the Sugar Act. 
This legislation’s major effect is to open the way for United States 
domestic producers to participate with foreign areas in supplying 
the growth of the United States sugar market. 
Consumers’ requirements of sugar in the United States last year 
amounted to 8.4 million short tons. 
The current determination of 
consumers’ requirements for 1956 is 8,350,000 tons. 
The United 
States needs now are supplied 53.7 percent from domestic areas 
(consisting of 22 mainland States producing beets, and 2 mainland 
States, Hawaii, Puerto Rico, and the Virgin Islands, producing 
sugarcane); 33.1 percent from Cuba; 11.8 percent from the Philip- 
pines; and 1.4 percent from other foreign countries (including the 
Dominican Republic, Mexico, El Salvador, Haiti, Nicaragua, Peru, 
and all others). 
72018—56——1 
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2 
EXTENSION OF SUGAR ACT OF 1948 
The present pattern of supplies is brought about by the provisions 
of the Sugar Act that essign fixed quotas amounting to 4,444,000 short 
tons, raw value, for the domestic producing areas, and 952,000 short 
tons, commercial weight, to the Philippines; and give to Cuba 96 per- 
cent, and to all foreign countries 4 percent, of the remaining portion 
of the United States murket. 
This bill maintains unchanged the participation of the domestic 
areas and of the fore-gn suppliers as a group in the present level 
(8,350,000 tons) of consumption requirements for the United States 
market. 
But this legislation would open the way for United States producers 
to participate in the larger market constantly being created by the 
growth of our consumption of sugar, and to a lesser extent other for- 
eign suppliers would enjoy a part of this expanding market along with 
Cuba, in the following manner: 
The amount of the increase in our market above 8,350,000 short 
tons, raw value, would be apportioned 55 percent to domestic produc- 
ing areas and 45 percent to the foreign suppliers. 
Of the future increases apportioned to domestic areas, the first 
165,000 tons will be supplied by the mainland areas where the surplus 
situation is most acute. 
The next 20,000 tons will be supplied by 
Puerto Rico which needs continued growth and thereafter 3,000 tons 
will be supplied by the Virgin Islands. 
Subsequent increases will 
be divided proportionately among the domestic areas. 
The quota 
for Puerto Rico was ineveased 170,000 tons, or nearly 19 percent, and 
the quota for the Virgin Islands increased 6,000 tons, or 100 percent, 
in the 1951 extension of the act which became: effective in 1953. 
Under the present act Cuba supplies 96 percent of the increasing 
requirements of the Un-ted States market. 
Under the amendments 
it will supply 96 percant of the increased imports from foreign 
countries during 1956 and thereafter will supply approximately 75 
percent of our increasing import requirements. 
The quota for the 
Republic of the Philippmes remuins at the level established in the 
Philippine Trade Act during the life of this extension. 
The share 
of imports to be suppliec. by other foreign countries will be materially 
increased under the amendments provided for in this bill. 
Table A shows the effects of the proposed amendments on the 
quotas and prorations ‘or domestic and forcign areas on the as- 
sumption that our sugax requirements will continue to grow at the 
rate of 135,000 tons per year. 
Table B shows the 1955 basic quotas 
and the percentage increase each year and for the entire period in the 
annual quota for each area. 
ATS 
HL A: LL 
LOTR 
ee: 
LA PLATT 
LLL LTT G PLA 
LO 
AN A 
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EXTENSION OF SUGAR ACT OF 1948 
TaBLE A.— Sugar quoias and prorations: Amended H. R. 7030 as reported by Senate 
Committee on Finance, under assumed requirements, 1956-62 
[Short tons, raw value] 
1056 
1957 
1958 
1959 
1960 
1961 
1962 
Assumed requirements. _--.---- 8, 635, 000 
|8, 670,000 
|8, 805, 000 
|8, 940, 000 }9, 075, 000 9, 210, 000 | 
9, 345, 000 
Domestic areas_._.------------- 4, 645,750 
|4, 620,000 
|4, 694, 250 
|4, 768, 500 |4, 842, 750 
|4, 917,000 | 4,991, 250 
1, 852, 401 |1, 884, 975 |1, 910, 307 
{1, 940, 523 1, 970, 739 
|2, 000, 955 | 2, 081, 171 
“|” 
649, 349 | 580,025 | 587,820 | 697,118 | 606,415 ) 615, 733 
626, 011 
1, 052, 000 
[1, 052, 000 
|1, 066, 138 1,083, 001 |1, 099, 865 
|1, 116,728 | 1, 133, 691 
“\1) 080, 000 
|1, 001, 000 |, 114, 783 1, 182, 416 
|1, 150, 049 1, 167, 681 | 1, 185, 314 
12, 000 
12, 000 
15, 202 
15, 442 
15, 682 
15, 923 
16, 163 
Foreign areas. ---.-.------------ 3, 989, 250 [4,050,000 
14, 110, 750 
|4, 171, 500 
|4, 232, 250 
|4, 293, 000 | 4, 358, 790 
Philippines !._...----..---- 
980,000 | 980,000 | 980,000 | 980,000 | 980,000 | 980, 000 
980, 000 
10 occ ape ee 
prep 
tem ae 2, 888, 880 
2, 917, 120 
12, 962, 750 
13, 008, 380 
|3, 054, 010 
8, 099, 640 | 3, (45, 270 
“Full duty’ countries_.._-_ 
120,370 | 152,880 | 168,000 | 183,120 | 198,240 | 218, 360 
228, 480 
Dominican Ropublic.._} 
29, 892 
35, 880 
86, 528 
39, 228 
41, 928 
44, 628 
47, 328 
Mexico... 
-| 
12,894 
24, 059 
36, 591 
41, 991 
47, 391 
52, 791 
58, 101 
Nicaragua. 
8, 472 
10, 318 
9, 746 
10, 298 
10, 849 
11, 401 
11, 952 
Peru... 
56, 224 
62, 863 
66, 254 
71, 654 
77, 054 
82, 454 
87, 854 
Maiti ..-.----- 
2, 892 
4,379 
4, 136 
4, 370 
4, 604 
4,838 
5,072 
Costa Rica 
2 (1,084) 
38, 439 
3, 248 
3, 432 
3, 616 
3, 800 
3, 984 
Formosa --.-. 
3 (1, 114) 
3, 489 
3, 248 
3, 4382 
8, 616 
3, 800 
3, 984 
Netherlands-.- 
2 (1, 123) 
3, 439 
3, 248 
3, 4382 
3, 616 
3, 800 
3, 084 
Panama__. 
2 (1, 114) 
3, 489 
3, 248 
3, 432 
3, 616 
3, 800 
3, 984 
Belgium --_------- 
2 (182) 
209 
225 
238 
251 
263 
276 
British Guiana__-- 
2 (85) 
98 
106 
111 
117 
123 
129 
Canada. .--..----- 
2 (631) 
723 
780 
824 
868 
912 
956 
Hong Kong------. 
2 (3) 
3 
4 
4 
4 
4 
United Kingdom... 
2 (516) 
592 
638 
674 
710 
746 
782 
El Salvador *_..-------- 
BEATS heise eet 
nee eta ten inccioha hn | 
SEES Seeass ones 
idivceuivetnwe 
1 Philippine quota for 1956 is 980,000 tons, 
2 Average 1953-54 charges, 
entries are made within the prora’ 
ments are 8,535,000 tons. 
8 No entries since 1949. 
may vary slightly in subsequcnt years. 
"These countries do not have specific prorations under the present law. 
These 
tion for unspecified countries which amounts to 6,018 tons when require- 
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4 
EXTKNSION OF SUGAR ACT OF 1948 
TanLe B.—-Sugar quotas and prorations: Amended H. B. 7030 as reported by 
Senate Committee on Finance, under assumed requirements, 1956-62 
{1955 basie quotas and percentage increase in quotas each year from previous year, 1955-62] 
1958 basic 
1955 to 
quotas 
1956 | 1957 | 1958 | 1959 | 1960 | 1961 | 1962 
1962 
. 
Tons 
Pet. | 
Pet. | 
Pct. | 
Pet. | 
Pet. | 
Pet. | 
Pet. | Pet 
Assumed requirements.._..-.--....-.- 
8, 400,000 | 1.6 
1.6 
1.6 
1.6 
1.5 
|—0.5 
LS 
11.2 
Domestic areas... -.-----..-.--. 
2-2. 
4,444,000 | 2.3] 
16] 
1.6 
-G67] 
16] 
15] 
15 
12.3 
Bect______.. 
1,800,000} 
2.9/ 
18] 
1.3} 
16) 
L6] 
L5] 
is 
12.8 
Mainland cane 
500,000 | 9.9) 
56] 
1.3] 
L&] 
1.6] 
1.5] 
1.5 
25.0 
Hawaii__... 
1, 052, 000 
|_. 
13; 
L6] 
L6] 
15] 
16 
7.8 
Puerto Rico. 
, 
22) 
16) 
LG] 
Lb] 
25 
9.8 
_ 
Virgin Islands.._._.._--... Sawin 
bax 
26.7) 
16] 
16) 
165] 
15 
34.7 
Foreign areas 
3, 956, 000 
BS} 
LS] 
15] 
156! 
1.3] 
nal 
we 
10.1 
Philippines 
977,000 | 0 
|_-.-.-]...---]----.|e---|e-e 
|e 
0 
Ouba.__.--.2 2 Poh 
2, 859, 840 
10 
1.0 
1.6 
1.5 
15 
15 
1.5 
10.0 
Full-duty countries. __...__ 
119,160 | 1.0/ 
27.0] 
99) 
90] 
831 
76) 
m4 
9L.7 
Dominican Republic 
20,591 
11.0 | 
20.0] 
1.8: 
7.4) 
69] 
64! 
go 
159.9 
Mexieo..___--. 
ce. 
12, 269 
[11.0 | 04.1 | 52.1 | 
14.8) 
12.9! 
11.4] 
102] 
13743 
Nicaragua. 
8,387 
[11.0 | 21.8 
|—5.6 
5.7 
5.4 
5.1 
4.8 
142.5 
Peru.._. 
55,658 
|11.0/ 
11.8] 
54] 
82] 
7.8) 
70] 
65 
157.8 
Haiti. _ 
2,863 
(11.0 | 514 
/-5.6) 
57] 
5.4] 
61) 
48 
177.2 
Costa Rica. 
2 (1,084)) 
(3) 
8) 
|—5.6 
5.7 
5.4 
5.1 
4.81) 
4267.5 
Formosa 
2(1,414)] 
(3) 
3) 
(5.6) 
5.7] 
5.4) 
51] 
4.8 | 4957.6 
Netherlands 
3 (1, 128) 
8 
4) 
/-5.6)] 
57] 
541) 
51] 
48 | 4254.8 
Panama. __ 
2 (1,114) 
¢) 
@) 
|-5.6) 
5.7] 
54! 
51] 
48) 
4257.6 
Belgium 
2 (182)| 
(8) 
@) 
27 
5.8 
5.5) 
48 
4.9 
451.6 
British Guiana. 
2 (85)) 
(8) 
(3) 
82) 
47) 
54/ 
51] 
49 
451.8 
Canada._____.. 
2 (631)| 
(3) 
Q) 
7.9) 
56] 
653) 
6&1] 
48 
451.5 
Hong Kong-... 
2@)| 
@) 
(@) | 88.3 fee. fp 
fe 
433.3 
United Kingdo 
2 (516)/ 
@) 
@) 
7.8)] 
56/1 
638) 
51] 
48 
151.6 
1 
1 Tacrease over 1955 basic quot:s before proration of deficit. 
2 No specific proration 1955. amount shown is 1953-54 average entries, 
3 No specific prorations 1955 or 1956. 
¢ Increase over 1953-54 averago 2ntries. 
The committee has not included in the bill any specific directive for 
the distribution to individual producers within the various domestic 
areas of any additional quotas that may become available. 
The 
authority of the Secretary and his obligation to make equitable distri- 
bution and to protect the interests of new producers, small producers 
and tenants as set forth in subsection 302 (b) of the act appear to be 
sufficient, particularly since no suggested change in that subsection 
has been offered. 
Au amendment was presented curing the hearings 
which would have diracted special treatment to those farms on recla- 
mation projects on which any acreage suitable for sugar beet produc- 
tion has been made available. 
The record shows that the acreage of 
all growers in both the domestic cane and sugar beet arcas has been 
substantially cut back and objection was registered with the committee 
to the provisions of the proposed amendment. 
The inclusion of the 
proposed directive wold have substantially altered existing provisions 
of the act and the administrative machinery that has been developed 
for the making of an cquitable distribution of acreage to all interested 
parties. 
The committee believes that any setting aside or earmarking 
of acreage for any special group or area is not in the interest of equit- 
able or effective administration of the law, and that it is highly un- 
desirable to change the terms of the present law, or its administration 
to accord special treatment to any group of growers or type of land. 
Foreign countries which fail by a aubstantiel margin to supply sugar 
to this market in years when the world price is higher than our domes- 
EN A HES I 
Eee Fi 
PES 
NR RN: UN 
TD LE RY AEE. 
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TENSION OF SUGAR ACT OF 
1 
tic price are subject to quota curtailment in future years, unless the 
failure results from crop disaster or force majeure or unless the 
Secretary finds that such curtailment is unwarranted. 
Provisions of the Sugar Act which limit the entry of direct-consump- 
tion sugar within quotas of both foreign and offshore domestic areas 
would be varied slightly to permit an increase in such allocations for 
the offshore domestic areas and to permit those foreign countries which 
- 
have relatively small quotas the convenience of shipping either raw 
or refined sugar to this market. 
The method of prorating deficits would be changed slightly to insure 
thatincreases which domestic areas receive through market participation 
but which they are not able to fill shall first be prorated to other domes- 
tic areas, rather than to Cuba and the other domestic areas, as is the 
case under the present act. 
In the event a domestic area is unable 
to fill a proration of a deficit assigned to it which results from increased 
quota due to market participation, the unfilled portion also would be 
apportioned to other domestic areas unless no such area is able to 
supply the required quantity in which case it would be added to the 
quota of Cuba. 
There are other amendments in the bill which deal with technical 
and administrative matters. 
These are discussed in detail in the 
analysis of the bill which appears later in this report. 
GENERAL STATEMENT 
Participation by United States sugar producers in the future market 
growth in this country does no more than restore to them the statius 
they had under sugar-quota legislation prior to World War II. 
In the Sugar Act of 1948, quotas for the domestic areas were limited 
to fixed quantities in order to assist Cuba in making the transition 
from wartime to peacetime conditions by assigning to her virtually 
all of the increases in the United States sugar market. 
It was recog- 
nized at the time that the change was of 
a temporary nature and 
that at the appropriate time the domestic 
areas should resume 
participation in market growth. 
The committee is of the opinion that 1956 is the appropriate time 
in view of the fact that all of the domestic areas are producing at or 
above their quota levels even though successively more stringent 
production controls have been imposed in several of those areas. 
Additional quotas granted to foreign countries are in line with our 
national policy of broadening our trade relations. 
Cuba retains its 
status as our largest forcign supplier by a wide margin and also 
retains a larger share in our market growth than any other area. 
A number of other Latin American countries receive quota increases 
which are large proportionally to their marketings heretofore, but 
which are small in relation to our total imports. 
Cuba’s marketings in the United States will not increase as much 
as had been anticipated in 1956, under the provisions of this bill, 
because of participation by the domestic areas in market increases 
beginning that year. 
Cuba’s share will also reflect the incrcases 
beginning in 1957 in the shares of the market assigned to other 
foreign countries. 
The actual tonnage of sugar which Cuba will market in the United 
States is expected to increase, substantially, however, from year to 
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EXTENSION OF SUGAR ACT OF 1948 
year because of the anvicipated continuation of increases in our sugar 
consumption. 
NATIONAL POLICY 
For many years it hzs been the policy of the United States Govern- 
ment for defense and strategic reasons to preserve within the United 
States the ability to produce a portion of our sugar requirements. 
This has been done because sugar is an essential and vital food prod- 
uct needed by Americ#n consumers, the supply of which on a world- 
mace scale has been marked by periods of alternating scarcity and 
surplus. 
A large portion of the world’s sugar production is grown in tropical 
countries with essenticlly one-crop economies, where cheap labor is 
abundantly available. 
An additional large portion 
is distributed 
among the majority cf the countries of the world which, like the 
United States, provide protection to their sugar industries. 
In these 
circumstances, it is unlikely that a significant amount of sugar would 
be grown in the continental United States if American producers 
had to compete on the open world market with sugar produced with 
cheap tropical labor. 
This can be readily seen from chart 1 which 
shows a comparison of wage rates of sugar-cane and sugar-beet. 
workers for the sugar-producing areas of the United States and for a 
number of other sugar-producing couritries. 
For many years, protection was afforded to our sugar producers 
solely through the taviff. 
Although the tariff did assist domestic 
producers, it still left them exposed to the price fluctuations of the 
world sugar market. 
Jt also increased the price of sugar to consumers 
in the United States without assuring them of adequate foreign sources 
of supply in case of emergencics. 
A «quota system which prorated domestic consumption among 
producers in the United States and a number of foreign countries 
was developed and enscted into law in 1934. 
The quota system was 
revised in 1937 and again in the present act which. became effective 
in 1948 and was amended in 1951, effective as of January 1, 1953. 
Since initiation of the quota system, the tariff oa sugar has been 
reduced 75 percent anc. now represents only supplementary protection 
to the sugar industry. 
A tax of 0.5 cent per pound is imposed on sugar manufactured or 
imported into the Un.ted States. 
Payments are made to domestic 
producers of sugarcane or sugar beets at a rate which ranges from 
80 cents per 100 potnds of recoverable sugar produced on small 
farms to as little as 30 cents per 100 pounds of production in excess 
of 30,000 tons of sugar on large farms. 
To qualify for payments 
inder the program, producers must comply with production restric- 
ions, pay fair wages fo workers, and not employ child labor and, if 
they are also processors, pay fair prices for sugarcane or sugar beets. 
i}; Income to the Government irom the tax on sugar has been very 
substantially in excess of the amount disbursed as payments to do- 
mestic growers during each of the years under the program. In 
recent years the income from the excise and import compensating 
‘ax has exceeded $80 million annually, while payments to growers 
and administration exoenses have approximated. $65 million. 
In the 
last 18 years there has been a net return to the Treasury of over 
$300 million in the difference between collections on the sugar excise 
tax and the costs of the Sugar Act program. 
Fo 
meneame 
SE SASSO: INS +0 RETO RE BO) SRAM 7 
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CHart 1 
SUGAR BEETS AND SUGAR CANE 
DAILY 
EARNINGS OF HARVEST WORKERS 
lu. Se. Dollars —____________—— 
I. 8. Dollars 
MK 
° 
2 
i) 
coon 
o 
. 
Es 
a 
a 
gg 
PY 
ial 
° 
A O 
_ 
a) a 
a 
am 
DOMINICAN 
REPUBLIC 
WEST 
GERMANY 
SUTIGH 
GUIANA 
UNITED 
KINGDOM 
NETHERLANDS L 
Vite 
Se 
1955 Crop including 
fringe benefits, 
1950 Crop excluding 
fringe benefits. 
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8 
EXTENSION OF SUGAR ACT OF 1948 
World sugar situation 
World sugar production reached a record level of about 47 million 
tons during 1954-55 despite the fact that production was rigidly 
controlled in Cuba and most areas of the United States. 
By com- 
parison, a century ago p-oduction had been less than 2 million tons 
and in 1900 it was only 13 million tons. 
During the period just 
before and after World War II it was about 33 million tons. 
Pro- 
duction of centrifugal sugar, which now accounts for all but about 
7 ee tons of the tolal, is shown by countries for recent years 
in table 
C, 
TasLe C.—Cenirifugal sugar (raw volue); Production in specified countries, averages 
1985-89, 1945-49, annual 1961-541 
[1,000 short tons) 
Averages 
Continent and country 
Sr, 
1051 
1952 
1953 
1954 
1935-39 | 1045-49 
| 
North American (cane and beet): 
British Honduras.._...-.---.--.-2..-.. 
i 
1 
3 
4: 
3 
5 
Canada.._._.. 
76 
| 
99 
133 
160) 
131 
183 
Costa Rica__-.---..-----..----- 
9; 
20 
33 
34. 
38 
35 
EI Salvador_._.---..---.-2.__. 
17: 
27 
31 
ry 
36 
36 
Guatemala.....--.------.... 
oe 
19! 
33 
33 
44 
46 
48 
Honduras. ._.-.--.--..--2.----- 
2] 
1 
1¢ 
i 
i 
Merico.....-----2.-2.2----- 20 
353 
636 
807 
911 
960 
1,041 
Nicaragua 
9 
21 
35 
38 
Panama. .__...-..- 
5 
1 
21 
19 
United States (beet). 
Lil7 
1, 514 
1, 549 
1, 508 
1, 816 
2,043 
United States (cane) __. 
74, 
455 
419 
fi 
6 
555 
Hawali._.--.2.... 
980 
861 
1,020 
1,098 
1,077 
1,127 
Puerto Rico. _. 
982 
1, 143 
1, 360 
1, 182 
1, 204 
24,166 
Virgin Islands. 
6 
6 
1 
1 
10 
10 
Antigua... 
22 
25 
38 
36 
14 
22 
Barbados. 
----.-.-.--..-.-- 
114 
121 
176. 
168 
184 
Cuba. -- 
3, 183 
5, 898 
7,964 | 25, 687 
25,301 
2 4, 004 
Dominic: 
9 
is 
668 
699 
673 
Grenada. 
1 
i 
1 
Guadalu: 
60 
48 
106 
96 
114 
123 
Haiti. 
44 
49 
63 
4 
Jamaica. 
119 
235 
299 
370 
407 
444 
Martinique__ 
64 
29 
42 
73 
87 
St 
AS: 
ok aS 
36 
40 
57 
58 
56 
55 
St. Lucia and St. Vincent, 
11 
12; 
14 
16 
1 
17 
Trinidad and Tobago......-..---.. 
.- 
149 
144 
154 
171 
193 
216 
Total, North America_..._..-.-..... 
8, 744 
11, 930 
15,027 
13, 053 
18, 218 
13, 182 
Western Europe (beet): 
Austria 
196 
46 
175 
146 
197 
229 
Belgium___ 
259 
246 
203 
356 
450 
382 
Denmark. . 
260 
206 
304 
205 
425 
243 
Finland. 
13 
14 
23 
22 
41 
France___.___--.--. 
1,078 
823 
1,395 
11 
1, 804 
1, 860 
Germany, Western. 
524 
1, 169 
_ 
1,552 
1, 488 
Treland.-..---..-... 
95 
100 
102 
143 
11 
3 
2 
331 
825 
820 
861 
968 
0 
386 
478 
504 
465 
366 
669 
327 
311 
4323 
4267 
4388 
4335 
2 
33 
3 
36 
37 
612 
753 
686 
860 
699 
127 
256 
61 
211 
161 
Total, Western Europe.._...._--_._.. 
4, 353 
3, 893 
6, 491 
6, 024 
7, 857 
7, 206 
Total, Eastern Europe__.._-...-_. _. 
2, 925 
2, 055 
3, 095 
2, 200 
3, 600 
3, 205 
‘Total, Europe_-._.--2-2-- 
2-22 ee 
7, 278 
5, 048 
9, 586 
8, 314 
TI, 457 
10, 501 
U.S. 8. R. (Europe and Asia) (beet)_..._ 
2, 761 
1, 643 
2,700 
2, 500 
2,700 
2, 500 
See footnotes at end of table, p. 9. 
STE GT I 
ORE ART A 
ST LSA 
EN SONS eR BME 
Approved For Release : CIA-RDP59-00224A000100250003-5 
Approved For,Release ;,ClAsRPP89;00224A000100250003-5 
Tasin C..—Centrifugal sugar (raw value): Production in specified countries, averages 
1985-89, 1945-49, annual 1961-64 \—Continued 
[1,000 short tons] 
Averages 
Continent and country 
peas 
———} 
1951 
1952 
1953 
1954 
1935-30 | 1045-49 
Asia (beet and cane): 
Afghanistan (beet) 
5 
4 
6 
7 
Burma 
10 
17 
25 
26 
25 
China, including Manchuria °__ 
87 
7 
72 
96 
86 
132 
UNI sien 
a ens alae cere 
1, 303 
1,319 
1,900 
1, 686 
1,320 
2, 000 
ANGOCHI 
NG oc5 onc cuneate 
cue se daene 
77 
11 
7 
4 
3 
3 
Indonesia_...-..----- 
senna 
1, 207 
102 
472 
637 
683 
787 
Tran (Dtet)cc 
sous nccchaceeeceecnwede 
23 
41 
85 
87 
86 
76 
Japan (beet) ___ 
46 
11 
31 
38 
48 
49 
akistan.-...-.-.---- 
33 
34 
83 
95 
91 
117 
Philippines, Republic of_ 
1,058 
382 
1,076 
1, 184 
1, 435 
1, 371 
Ryukyu Islands____. 
3 
0 
1 
6 
5 
Syria (beet)... __ 
0 
0 
2 
7 
9 
9 
Taiwan (Formosa) 
1, 240 
346 
597 
983 
796 
832 
Thailand..____.__. 
21 
23 
37 
40 
40 
44 
Turkey (beet)... .-- 
76 
131 
228 
200 
213 
215 
Total, Asia (excluding U.S, 8. R,).. 
5, 230 
2,492 
4, 613 
5, 040 
4, 849 
5, 672 
ts 
| 
: 
=| 
South America (cane): 
Argentina. _.-.------..--.--e 
eee eee 
510 
654 
760 
654 
829 
908 
Bolivia__ 
1 
2 
3 
6 
9 
Brazil. .....---.- 
830 
1, 420 
1, 857 
2,15 
2, 328 
2, 479 
British Guiana__ 
210 
198 
272 
269 
268 
Colombia... 
61 
185 
178 
218 
251 
304 
oom 
24 
44 
53 
64 
62 
58 
6 
16 
33 
25 
16 
19 
444 
485 
528 
675 
688 
725 
15 
5 
7 
8 
6 
6 
2 
3 
i 
19 
25 
37 
BHSAUA Coe Seuss tbauate. 
22 
41 
70 
80 
110 
130 
Total, South America._.....__..-.- 
2,115 
3, 003 
3, 772 
4,170 
4, 589 
4, 963 
Africa (cane): 
DOGG. 
| ooo ceuecktetcuhepes 
wanes 
37 
50 
54 
56 
57 
50 
Belgian Congo_....._-_.--.-- 
14 
17 
17 
18 
20 
20 
British East Africa..._.____. 
63 
88 
88 
92 
73 
86 
Egypt. oeecu 
oe ect 
166 
211 
208 
262 
295 
330 
Madagascar_._....___..2-2 
2.2. 
16 
14 
17 
19 
20 
20 
Madeira and Azore Islands §_._ 
9 
9 
1 
11 
il 
it 
Mauritius_..__. 2220222202220. 
320 
351 
535 
517 
566 
551 
Mozambique__.__.....-....-2- 
81 
86 
92 
104 
90 
104 
Reunion--_----.- 
Sere 
91 
81 
142 
174 
189 
200 
Union of South Africa____..22.2...-_. 
498 
542 
533 
670 
725 
828 
Total, Africa...-._..-.-.-.-.--- 
2-2 
1, 295 
1, 449 
1, 697 
1,913 
2, 055 
2, 200 
Oceania (cane): 
Australia. _. 
804 
830 
809 
1, 027 
1, 357 
1, 437 
Fiji. s2.. 
= 22 
150 
131 
146 
183 
229 
137 
Pacific Islands. 
69 
0 
0 
0 
0 
0 
Total Oceania 
1,118 
961 
955 
1, 210 
1, 586 
1, 574 
World total (cane)...-..----.22..-2. «- 16, 763 
18, 053 
24, 008 
23, 866 
23, 931 
24, 945 
World total (beet). ...-.-..-.-- 
22. 
dM, 773 
9, 882 
14, 342 
12, 834 
16, 523 
15, 597 
World total (beet and cane)........- 
28, 536 
27,435 
38, 350 
36, 200 
40, 454 
40, 542 
1 Centrifugal sugar, as distinguished from noncentrifugal, includes cane and beet sugar produced by the 
centrifugal process, which is the principal kind moving in international trade. 
Years shown are for crop years; generally the harvesting season begins in the fall months of the year 
shown or in the carly months of the following year, except in certain cane-sugar-producing countries in 
the Southern Hemisphere, such as Australia, Argentina, Maritius, Union of South Africa, etc., where the 
season begins in May or June of the year shown. 
2 Restricted crop. 
3 Includes a small amount of cane sugar. 
4 Including sugar from Danish bects processed in Sweden. 
5 Includes both cane and beet sugar. 
Source: Foreign Agricultural Service. 
Prepared or estimated on the basis of official statistics of'forelgn 
governments, reports of agricultural attachés and other United States representatives abroad, results of 
office research and other information. Estimates of countries having boundary changes have becn adjusted 
to postwar boundaries. 
72018-—56——2 
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10 
EXTENSION OF SUGAR ACT OF 1948 
The remarkable increase in production long ago removed sugar 
from the category of luxury food items and made it one of the cheapest 
of all foods on a caloric basis. 
Postwar increases in production have 
brought the world market: price down to the present low level of about 
3.25 cents per pound. 
Production has been stimulated by special incentives in the way of 
subsidies, tariffs, and other programs designed to make most of the 
countries of the world partially or wholly self-sufficient with respect 
to sugar production. 
In those tropical areas where sugar is produced 
in large quantities for export, the absence of other opportunities for 
utilizing labor has tended to promote ever-increasing production 
through low wages. 
Bevause of these situations, falling prices have 
not, had the familiar effect of curtailing production. 
In a similar 
way, consumption on a per capita basis has not tended to rise sig- 
nificantly in response to price declines. 
This is so because of high 
retail prices for sugar in many countries resulting from consumption 
taxes and other devices which insulate the retail price of sugar in 
those countries from the free world market price. 
Tn most of the countries of the world, the price of sugar to consumers 
is from 2 to 17 cents per pound above the world market level. 
The International Sugar Agreement negotiated in London during 
1953 has as one of its objectives the promotion of sugar consumption 
through the removal of excessive taxation and other consumption 
retarding devices and the discouragement of undue protectionism. 
The long-term effect of the agreement in this respect may be very 
helpful and in the meantime world consumption has been rising at 
a quite remarkable 
rate 
in response 
to population growth 
and 
improving economic conditions, 
The International Sugar Agreement is also designed to gear produc- 
tion of sugar destined for sale in the world market to demand in 
that market, 
Nevertheless, the outlook is the same as it has been 
in the past: chronic production in _cxcess 
of demand during non- 
emergency periods altccnating with unsatisfiable demand 
during 
emergency or wartime periods. 
Prior to the war, our domestic production fluctuated cousiderably 
and averaged about 4 milion tons, a level it first had ettained in 1933. 
During the war, and perticularly in the latter stages, our national 
policy was to encourage other crops to a greater extent than sugar 
beets. 
Because of this situation coupled with labor and supply 
shortages resulting from the war, as well as direct war activities, 
production declined in each of the domestic areas, except the mainland 
cane area and averaged about 3.5 million tons. 
Since the enactment 
of the Sugar Act of 1948, production has risen in each of the domestic 
areas and for the period aas averaged about 4.5 million tons, 
In 1954 
it totaled 4.9 million tons and is estimated to have been about 4.7 
million tons in 1955. 
HISTORICAL DEVELOPMENTS 
The first tariff on sugar was imposed in 1789 to provide revenue 
for this country in the surly years of its independence. 
During the 
major part of the 19th century, when import duties and domestic 
excise taxes were the chief source of Government receipts, the sugar 
tariff yielded close to 20 percent of our import dutics. 
The revenue tariff, ircidentally, provided protection to the sugar 
industry in Louisiana after that area became a United States Territory 
a 
aiemaaeneeeediiel 
{RRESEQIETIRRCREREENEE HEEL eREERON EEE a 
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Approved For,Releasecr 
GAs DP59:002244000100250003-5 
in 1803. 
Hawaii also received the benefit of tariff preety under 
the Reciprocal Treaty of 1875 negotiated with the then Kingdom of 
Hawaii, 
Following a short experiment during the years between 1890 
and 1894, with sugar on the free list and with a 2-cent-per-pound 
bounty on domestically produced sugar, the tariff was reenacted 
strictly as a protective device for the domestic industry. 
After the Spanish-American War, our new possessions, Puerto Rico 
and the Philippines, received the benefit of tariff protection and a 
preferred tariff status was granted to Cuba. 
Production expanded 
rapidly in all three areas and also in the mainland sugar beet area 
which had developed in the latter part of the 19th century, but which 
grew rapidly in the early years of the present century. 
During the protective-tariff period, our sugar industry experienced 
alternating periods of prosperity and depression. 
But by 1933 it 
had become clear that the tariff system alone would no longer ade- 
quately protect the domestic industry. 
Morcover, it had brought 
Cuba, our principal foreign supplier, to economic and political chaos. 
Sugar prices in Cuba that year declined to a small fraction of the 
2-cont-per-pound tariff. 
Cuba was no longer a major market for 
American goods. 
Mainland sugar producers could not get “fair 
exchange value” for their sugar crops. 
Under the present quota system, the tariff is a supplementary means 
of protection and has been reduced progressively from a rate of 2 
cents per pound of Cuban sugar in 1934 to the present rate of 0.5 
cent per pound. 
Congress in 1934 enacted the Jones-Costigan Act, which restricted 
the supply of sugar in the United States market to a total quantity 
determined each year by the Seeretary. 
Market shares for the 
mainland beet and the cane areas were established in the act largely 
on the basis of production during the 2 preceding years. 
The Secre- 
tary was given discretionary power to determine which 3 years durmg 
the 9-year period, 1925--33, would serve “as the most representative” 
years to form the basis for the quotas of each of the offshore areas. 
Yor most of the areas he chose the period 1931-33, and for Hawaii 
the period 1930-32. 
The act also provided for a processing tax on 
sugar and for benefit payments to domestic growers as well as for 
control of domestic production and imports. 
The Sugar Act of 1937 established each area’s share of the market 
on the basis of percentages which were about the same as those de- 
veloped through experience under the 1934 act. 
As a group, the 
domestic areas received 55.59 percent of total domestic requirements 
and were guaranteed a minimum quota of 3,750,000 tons. 
Cuba’s 
percentage was 28.60; the full-duty countries, 0.40; and the Republic 
of the Philippines, 15.41, with a guaranteed minimum quota for the 
latter country of 952,000 tons of sugar, commercial weight. 
The act provided for an oxcise tax at the rate of one-half cent per 
pound of sugar and also provided for payments to domestic growers 
on the condition that marketings were kept within individual propor- 
tionate shares of the quota; that they paid fair wages and employed 
no child labor, and that those who were also processors paid fair 
prices for sugarcane or sugar beets. 
After suspension of quotas during the war years, the Sugar Act of 
1948 was enacted with a number of changes designed to meet the 
problems of the postwar transitional period. 
This committce empha- 
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12 
EXTENSION OF SUGAR ACT OF 1948 
sized in its report at that time that the act was to be re arded in that 
light and not as the establishment of long-term national sugar policy. 
The domestic areas were given fixed tonnage quotas which were 
roughly equivalent to the 
percentage shares they had received under 
the 1937 act. 
The Republic of the Philippines, whose sugar industry 
had been demolished curing the war, received the fixed tonnage 
quota specified in the Philippine Trade Act of 1946, 952,000 tons of 
sugar, commercial weight. 
Cuba and the full-duty countries became 
the residual suppliers, with Cuba receiving 98.64 »vercent of such 
needed supplies. 
Cuba also was to supply 95 pereer.t of the deficits 
in the Philippine quota which, it was known, would be large curing 
the years when that country was rebuilding its sugar industry. 
The 
full-duty countries which formerly received 
all of the Philippines 
deficits retained 5 percent. 
The Sugar Act was araended and extended in 1951, effective as of 
January 1, 1953. 
The major features of the 1948 act were retained 
unchanged except that the quota for Puerto Rico was increased by 
170,000 tons, that for the Virgin Islands by 6,000 tons, and Cuba’s 
share of the residual quota was reduced to 96 percent, while the 
share of the full-duty countries was raised to 4 percent. 
Beeause of the special consideration given to Cuba under the 1948 
act and the healthy demand in the world market, Cuba, contrary to 
expectations, was not reruired to cut its production curing the early 
postwar years. 
As a result of the flourishing demand for sugar during 
the period of the Korean hostilities, Cuba actually was enabled to 
increase production steadily until 1952, when the record crop of 8 
million tons was harvested. 
That crop, however, supplied all world 
needs and left a surplus of approximately 2 million tons, which has 
me 
overhung the market since that time. 
Boginning with, the next crop, 
Cuba drastically curtailod production and has continued to do so 
during each succeeding yvar, 
Cuba supplied to this market an average of 2.1 million tons under 
the Sugar Act of 1937, 2.9 million tons during the war years, 3.0 mil- 
lion tons during the 5 years under the Sugar Act of 1948, and 2.8 million 
tons during the 3 compleved years under the present extension. 
When the act was extended in 1951, Puerto Rico was the only do- 
mestic area which had experienced a surplus crop and the quota for 
that area was increased by 170,000 tons to alleviate the problem. 
When the extension became effective in 1953, it already had become 
apparent, however, that production was rising rapidly to quota levels 
in all of the domestic areas. 
Farm production, in general, was mov- 
ing toward a surplus situation in 1952 and, as a result, sugar beets 
have become increasingly favorable in relation to alternative crops. 
Production research has made available new varieties of both sugar 
beets and sugarcane plus improved agronomic 
practices which have 
tended to increase yields substantially in the 
last few years. 
This 
tendency has been particularly strong in the mainlane cane area. 
Marketing allotments «nd acreage controls have been in effect in 
Puerto Rico continuousl:7 under the present extension of the act. 
Marketing allotments were imposed in the mainland cane arca in 
1953 and in the domestic beet area in 1954. 
Acreage allotments 
have been in effect in the mainland cane area since 1954 and in the 
beet, area beginning with the 1955 crop. 
Current sugar inventories in the domestic beet area are about 
250,000 tons above average and in the domestic cane area 230,000 
ET 
Se ete) TERRES HERE 
AE 
ECE LTT KIT 
AN ES OO EI 
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tons above average. 
In the mainland cane area inventories amount 
to 400,000 tons, or 140 percent above average, and in the domestic 
beet area, 1,600,000 tons, or 20 percent above average. 
The special 
Government purchase program 
will reduce these inventories by 
71,500 tons in the mainland cane area and 28,500 tons in the domestic 
beet area. 
SUGAR PRICES 
med 
A. hundred years ago, sugar was very expensive and quite rare. 
After the Civil War, for mstance, raw sugar wholesaled for more than 
20 cents per pound and at one time in our history the tariff alone on 
loaf sugar was 12 cents per pound. 
As tho price of sugar declined, 
consumption rose until the middle 1920’s, after which time price 
appeared to have little effect upon the rate of sugar consumption in 
this country. 
The price of sugar in relation to other foods and per 
capita distribution of sugar are shown in table D for the period since 
1860: 
TABLE D.—Wholesale sugar prices, index numbers of wholesale prices of all foods 
and wholesale sugar prices tn relation to prices of all foods, annually 1860-1954 
and monthly January to May 1956 
[Index numbers of per capita disposable income and wholesale sugar prices in relation to per capita disposable 
incomo annually, 1910-54, and Ist quarter of 1955} 
Index numbers 
Sugar prices in 
(1935-39= 100) 
relation to — 
Sugar price, 
Year 
oe Care 
oe 
ew 
Yor! 
rices of | Per capita 
s, 
Per capita 
all foods | disposable 
pee 
disposable 
(wholesale)| 
income 
income 
@ 
(2) 
Q) 
(4) 
@®) 
(8) 
Cts, per W. 
9.78 
Cts. per lb. | 
Cts. per ib. 
12. 54 
A 
RD 
BD 
NIN 
DD 
DM 
DO 
O [DM 
PH 
s WANES 
OWRHEDBOO 
SSSRELESRRESHRSABS 
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14 
EXTENSION OF SUGAR ACT OF 1948 
Taste D.—Wholesale sujar prices, index numbers of wholesale prices of all foods 
and wholesale sugar prices in relation to prices of all foods, annually 1860-1954 
and monthly January tc May 1956—Continued 
Index numbers 
Sugar prices in 
(1935-39= 100) 
relation to— 
Sugar price,|_ 
red, 
ate 
Year 
net cash, 
; 
New York | Prices of | Per capita 
Prices of | Pet capita 
allfoods ! disposable 
all foods 
disposable 
(wholesale)| 
income 
c 
income 
Q@) 
(2) 
(8) 
(4) 
(8) 
(6) 
Cts. per 1b. 
Cts, per lb. | Cts. per lb. 
4,92 
8.20 
f... 
5.32 
8.31 
6.05 
7.89 
4,46 
6.56 
4, 64 
7.03 
4,77 
6.91 
| 
5, 26 
7.62 | 
4, 52 
6. 65 
4.65 
6.46 
4,96 
6.70 
4,76 
6.03 
4,97 
6. 06 
7.89 
5.34 
6. 85 
8.48 
5.04 
5, 93 
7.52 
4, 28 
5.22 
6, 20 
4.68 
5.71 
6. 88 
§. 56 
6.78 
7. 83 
6. 86 
7.22 
8.37 
7.66 
5, 80 
7.82 
7. 83 
5.19 
7.25 
9.00 
5,49 
7. 38 
15. 55 
8. 94 
12. 34 
6.19 
5.43 
6, 25 
5.93 
5, 34 
5,70 
8, 41 
7.19 
7.07 
7.31 
6. 36 
6.19 
5, 45 
4, 33 
4, 43 
5. 46 
4.33 
4.33 
5.70 
4,75 
4.67 
5. 52 
4.31 
4.38 
5. 03 
3. 99 
4.81 
4,62 
4.05 
3.95 
4.43 
4, 66 
4.47 
3.99 
5.18 
5, 82 
4, 32 
5. 61 
6.17 
4, 44 
4,99 
5, 55 
4, 85 
4, 58 
5.45 
4.69 
4.51 
4, 64 
4,73 
4, 38 
4.42 
4.48 
4, 82 
4.57 
4, 58 
5.16 
4, 36 
4, 33 
4, 81 
3. 87 
4. 92 
4. 69 
3. 62 
6. 45 
4, 33 
3.21 
5, 49 
4.07 
2, 89 
6.46 
4.11 
2. 65 
&, 39 
4,02 
2. 58 
6,34 
3. 84 
2. 89 
8. 12 
3.94 
3. 56 
7. 60 
3.42 
3.05 
7.81 
3.87 
3.19 
7.84 
3.79 
2.97 
8.21 
3. 54 
2; 88 
8. 45 
3. 69 
2.87 
8. 55 
3.00 
2. 80 
8. 55 
3. 92 
2.81 
8. 42 
3. 97 
2. 67 
Sources: 
Jolumn 2: 
1860-99: Palmers Sugar Manual Concerning Sugar. 
1900-55: Lamborn Sugar Tarket Report. 
Column 3: 
1860-1909: Whole Prices for 213 Years, Warren and Pearson. 
1910-85: Index numbers o; the Bureau of Labor Statistics converted to 1935-39 = 100. 
Column 4: 
1910-28: Estimates by BAE. 
1929-51: Computed by BAE from data of U. 8. Department of Commerce. 
Col. 5: Col. @) divided by co’. (3). 
Col. 6: Col. (2) divided by co’. (4). 
TO 
LT TOT Oat HOT Sen a 
EE 
OTS 
TNT (CS 
EY SRE Ge 
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a 
a 
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EXTENSION OF SUGAR ACT OF 1948 
15 
In relation to the price of other foods, the price of sugar in the 
United States as in other countries of the world has declined greatly 
during the past century and still continues to do so. 
Since 1940, for 
instance, the wholesale price of all foods has increased. much more 
than the wholesale price of refined sugar. 
Last year, the wholesale 
price of all foods was 136 percent higher than in 1940, whereas the 
wholesale price of sugar was only 94 percent higher than in 1940. 
Beeause of protective devices such as tariffs, exchange restrictions, 
and production subsidies which are applied to sugar in almost every 
major sugar-consuming country of the world, relatively little sugar is 
sold in markets where it docs not enjoy preferential treatment. 
Asa 
result of this market narrowness, the world market price of sugar 
fluctuates widely and is very sensitive to relatively minor shortages or 
surpluses in world production. 
The sugar acts have eliminated the extremes of very high and very 
low prices in the United States market. 
They have protected do- 
mestic growers during long periods of price depression in the world 
market and likewise have protected consumers during shorter but 
sharper periods of price inflation in that market. 
Price stability has 
helped assure adequate supplies to consumers and a market for a 
definite quantity of production to producers. 
The following table shows, monthly, beginning in 1947, the world 
market price for raw sugar, the price of raw and refined sugar in this 
country, and the price that would be in line with the price formula of 
section 201 of the Sugar Act. 
It is interesting to note the stability 
of domestic prices in relation to the world market and also the fact 
that domestic sugar prices have remained well below the formula 
price mentioned in the act. 
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16 
EXTENSION OF SUGAR ACT OF 1948 
Taste E.—Sugar prices: Raw and refined, monthly, January 1947 ta date 
{Cents per pound] 
Refined sugar 
Raw sugar 
(wholesale, New York) 
Year and month 
anes 
World, 
ow 
York, 
| 
free along- 
i 
‘ 
duty paid | 
side ship 
Actual 
| Adjusted * 
Cuba 
69) 
(2) 
(3) 
@&) 
(5) 
Dis ois bat ean 
eae 
ae 
oe 
Sad hs 2 
26.03 
16.08 
8.00 
8.03 
ae tune 
16.12 
28.02 
8,20 
8.02 
16.12 
25.08 
8. 20 
8.18 
16.18 
25.08 
8. 25 
8,18 
14.18 
25.08 
8.25 
8.17 
16.18 
25.03 
8, 25 
8.23 
16,18 
2 5.03 
8. 25 
8.30 
16.30 
25.08 
8. 38 
8.39 
16.32 
25.03 
8.40 
8. 59 
ae 
16, 32 
25.03 
8.40 
8. 59 
November. 
16. 32 
25.03 
8. 40 
8. 64 
December 1-2 3550-2 te sao iene de eas thee 
aoe 
16.32 
2 §.03 
8.40 
8.75 
16.21 
25.03 
8. 29 
8. 34 
5.63 
3.96 
8.21 
8.85 
5. 50 
4, 24 
7: 82 
8.78 
5.42 
4,26 
7.75 
8. 75 
5.35 
4,43 
7.76 
8. 87 
5,14 
4,27 
7.60 
8, 94 
5. 35 
4.06 
7.51 
9. 01 
* 5.69 
4.10 
7.75 
9.11 
5. 78 
4,41 
7,76 
9,15 
5. 66 
4, 39 
7.76 
9.15 
5. 65 
4. 32 
7.75 
9.11 
5. 68 
4.27 
7.75 
9, 04 
§. 66 
4.03 
7.75 
9. 00 
5, 54 
4, 23 
7.76 
8.98 
5.69 
4.00 
7.99 
8.97 
\ 
5. 65 
3.08 
8.00 
8.87 
5. 68 
4.17 
7.96 
8.90 
5.63 
4.09 
8.10 
8.92 
5.78 
4.04 | 
8.02 
& 39 
4.86 
4.08 
7.87 
8.91 
5.83 
4.13 
7.85 
8.36 
5. 88 
4, 20 
7.85 
8. 87 
6.01 
4.19 
7.90 
8. 82 
6.02, 
4.33 
8.05 
8. 87 
5.91 
4.33 
8.05 
8. 87 
5.74 
4.39 
8.04 
8, 82 
5.81 
4.16 
7.97 
8. 8 
5.74 
4,62 
8.065 
8.79 
5. 59 
4,47 
7.92 
8.77 
5. 54 
4.44 
7. 74 
8.80 
§.53 
4.37 
7.70 
8. 80 
5.71 
4,21 
7.70 
8.85 
5.78 
4.21 
7.70 
8.89 
6.07 
4.89 
7.97 
8.99 
6. 25 
§. 83 
822 
9.06 
6.25 
5.88 
8. 25 
912 
6, 23 
5. 84 
8.25 
9.17 
November. 
6.19 
5.58 
8, 25 
9, 21 
Detember-sce28 
ee ecseecSaece 
sue succeoescne sessed 
6.30 
5. 36 
8.25 
9.34 
AVOGlO 
ZO sessnssiten 
sebes ce Seeetcenceeteelise 
5.93 
4,98 
8.00 
8.98 
1951--January.-....-.--.----.--- 
6.08 
5. 22 
8.25 
9. 49 
Februa: 
§,96 
4.96 
8 25 
9.60 
5.90 
5.48 
8. 25 
9. 63 
5.81 
5. 57 
8. 25 
9.64 
6.36 
6.62 
8, 40 
9. 69 
6, 69 
7.41 
8.60 
9. 68 
6.30 
6.75 
8.74 
9. 69 
peeks 
6.00 
5.61 
&. 52 
9.69 
; 
shoo 
Soest 
Be see os co 
6.00 
5, 52 
&. 50 
9. 75 
October cies to pete tin aveat ooeeeaues 
ohne, ee 
5. 98 
&. 28 
8.25 
9. 79 
See footnotes at end of table, p. 17. 
Tr 
on 
a serene 
meaieadaddilll 
ATED ALL CR OLA TNS SIE 
Se 
- 
i 
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EXTENSION OF SUGAR ACT OF 1948 
17 
Tanue E~—Sugar prices: Raw and refined, monthly, 
January 1947 to date—Con, 
{Cents per pound] 
: 
Refined sugar 
Raw sugar 
(wholesale, New York) 
Year and month 
World, 
New York, | free along- 
3 
duty paid’! 
side ship 
Actual 
| Adjusted 
Ouba 
() 
(2) 
@) 
@ 
(5) 
1951—January— Continued 
NOVOMDOH: 
6 uw. 3 2c sestad caees See see eases Se . Hee le 
5,97 
4, 83 
8.25 
9. 85 
5.78 
4, B4 
8.25 
9. 88 
6.06 
5.67 
8.38 
9.70 
5.80 
4, 54 
8, 21 
9. 8B 
5.77 
4.38 
8.15 
9. 82 
6.16 
4,30 
8.38 
9. 82 
§. a1 
4.30 
8. 65 
9. 86 
§, 21 
4.94 
8.65 
9. 87 
6.43 
4.17 
8.69 
9.90 
8. 48 
4.16 
8. 80 
9.07 
6,48 
4,05 
8.80 
9. 98 
§. 50 
4.00 
8.80 
9.97 
6. 59 
4.01 
8. 80 
9.97 
6.44 
4.00 
8.86 
9. 98 
6,06 
3. 84 
8.71 
9. 07 
AN OLERO coo ceheu os es. 
oiy osc eetk cd 
eel 
ete { 
6.26 
4.17 
8.62 
9.91 
1933—January 
6. 04 
3.55 
8. 58 
9. 95 
Februar 
6.16 
3. 52 
8. 50 
9. 90 
March_- 
§.33 
3. 27 
8. 65 
9. 92 
April 
6.33 
3. 38 
8.75 
9. 93 
May_- 
6.35 
3. 65 
8.75 
9, 96 
June.- 
6.37 
3. 62 
8.75 
1d. 60 
July -_..- 
6.41 
3. 60 
8.79 
10. 02 
August . 
6, 40 
3. 53 
8.085 
10.04 
September. 
§. 41 
3. 28 
8. 85 
10. 06 
October... 
6. 40 
3.15 
8. 85 
10. 08 
November... 
6, 15 
3.10 
8. 69 
10. 04 
December 
6, 05 
3.27 
8. 65 
10, 04 
AVOTARG 1.2 oseosaneceelecseeuoen ss 
se esuc 
eae 
6, 29 
3, 41 
8.72 
10.00 
1054-—JANUATY:: i405 
goecegods donee tticercad lagusened 
6.04 
3. 30 
8. 65 
10.06 
February. 
§. 06 
3. 38 
8. 65 
10, 04 
March 
6.18 
3. 28 
8. 73 
10. 08 
i 
- 6.19 
3. 36 
8. 80 
10.01 
6.10 
3.32 
8. 80 
10. 04 
8.165 
3. 27 
8.80 
10. 05 
6.19 
3. 13 
8.80 
10. 66 
§. 09 
3.18 
8. 80 
10. 04 
8.98 
3. 21 
8.70 
10.02 
5.96 
3. 25 
8. 65 
10.00 
November-. 
6.15 
3, 26 
8.65 
10. 04 
December. 
ait 
, 5.96 
3.19 
8. 65 
9, 98 
SAN CTAGS co's oeyeeehcb 2 aned gee 
ae 
ae 
ones Sa 
6,09 
3. 28 
8. 72 
10. 08 
19§6—January._.-.-- 
2-2. eee en eee eee ee eee 
5.96 
8.17 
8. 65 
9.98 
February 
5. 04 
3.17 
8.62 
9. 98 
March_. 
5. 84 
3.22 
8. 55 
9.98 
DIN i Foe eat wk te hae we wen oa Cone ra eit 
5,82 
3.31 
8.65 
9. 97 
WAY oi ote seen eh ae crea tanue eae swe te ae Woe 
5. 95 
3.38 
8. 55 
9.97 
June... 
“6.02 
3. 26 
8. 55 
9. 99 
July._ 
6.01 
38. 22 
8. 65 
10.02 
August___- 
6. 02 
38. 22 
8. 56 
10.00 
September__ 
6.00 
3.27 
8.65 
10.64 
October-__.. 
6. 06 
3. 28 
8.63 
10. 04 
November... 
eee 
5.97 
3. 19 
8. 65 
10.04 
December... -_.--—. -Seecbabee 
pends Seteedet Coates 
5, 83 
8. 16 
8. 65 
10.02 
AVOTORG ques os 
dec scedece lente eecoe tl 
eese 
5.95 
3. 24 
8. 58 
10. 08 
' Average delivered price charged United States refiners by Commodity Credit Corporation. 
3 Prices paid to Cuba by CCC plus CCO's expenses of approximately 1 percent. 
’ Adjusted for changes in Consumer's Price Index (Sugar Act Formula). 
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18 
EXTENSION OF SUGAR ACT OF 1948 
COMPARISON WITH H. 8. 7080 AS PASSED RY THE HOUSE 
The bill as reported by this committee is similar in most respects 
to H. R. 7030 as passed by the House. 
It differs somewhat with 
respect to the allocation of quotas to the various areas. 
Further, it 
does not contain the section of the House-passed bill which directs 
Commodity Credit Corporation to purchase 100,000 tons of sugar 
from the 2 mainland areas and, in addition, it provides for a 6-year 
rather than a 4-year extension of the Sugar Act. 
The few remaining 
changes are minor in nature. 
Since last summer, CCC has purchased 100,000 tons of sugar from 
the mainland areas. 
Inasmuch as the objective of the House-passed 
bill with respect to the purchase program has becn fulfilled, no pur- 
pose would be servea in continuing that section end, accordingly, it 
has been deleted from the bill reported by this committee. 
With respect to quotas, both bills are similar for that portion of 
requirements amounting to 8,350,000 tons. 
This bill- provides that 
the domestic areas shall supply 55 percent and foreign areas 45 
pereent. of consumer requirements in excess of 8,350,000 tons, whereas 
the House-passed bill divided such increases equally between domestic 
and foreign areas. 
Doth bills provide priorities as to the manner in 
which the several domestic areas shall participate in the first 188,000 
tons of the quota increase accruing to them. 
This bill gives first 
priority 
to the 2 mainiand areas with respect to the first 165,000 tons 
of such increase, a second priority of 20,000 tons to Puerto Rico, and 
a third priority of 3,000 tons to the Virgin Islands. 
The House bill 
contained & collective priority for all domestic areas except Hawaii 
for 1956. 
Both bills provide that increases in total domestic quotas 
: 
in excess of the priorities be apportioned on the basis of the domestic 
quotas in effect at the time such increases occur. 
A substantial difference exists between the two bills with respect to 
section 7 which establishes the method of sharing quotas among 
foreign countries. 
Both bills provide the same quota for the life of 
the amendment. to the Republic-of the Philippines, namely, 952,000 
tons, commercial weight, and both retain provisions of the current 
act. with respect to the division between Cuba and other foreign 
countries for the year 1956. 
Beginning in 1957 the two bills would produce substantial differences 
in the quotas for domestic and foreign arcas. 
Table F shows the 
prospective quotas 
that would result from the House bill. 
The 
differences between quotas for foreign areas shown in table F and 
those shown in table A, which would result from this bill, would 
increase appreciably if the House bill gave domestic areas 55 percent. 
of the future increases in the United States. 
The House bill would 
give the domestic areas only 50 percent of such increases. 
<A 
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OLN ETN TAN NNO 
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EXTENSION OF SUGAR ACT OF 1948 
19 
Tan_e F,—Sugar quotas and prorations: H. R, 7080 as passed by House under 
assumed requiremenis, 1956-60 
[Short tons, raw valuc] 
1956 
1987 
1958 
1959 
1960 
Assumed requirements... -...------.----- 
8, 635,000 | 8,670,000 | 8,805,000 | 8, 940, 000 
9, 075, 000 
Domestic areas... 
.-.--. 22-2 wee 
_.{ 
4,586,500 ] 4,604,000 | 4,671,500 | 4,739,000 | 4, 806, 500 
LA 
1, 841,810 | 1,869,215 | 1,896,620 | 1,924,024! 
1, 91, 480 
Mainiand cane. 
539, 405 
547, 431 
555, 457 
663, 483 
571, 509 
Hawaili__.--.- 
1, 052, 000 
1, 067, 653 
1, 083,306 | 1,098, 959 
1, 114, 612 
Puerto Rico.- 
1, 089,805 | 1,106,020 | 1,122,236) 
1,188, 452 
1, 154, 667 
Virgin Islands 
18, 480 
138, 681 
13, 381 
14, 082 
14, 282 
Ta 
= 
a: 
= 
— 
Foreipn areas... 0-2-2. 
ee eee ee -| 
3,998,500 | 4,066,000 | 4,133,500! 
4,201,000 | 4, 268, 500 
Philippines ! 
- 
930, 000 
980, 000 
980, 060 
980, 000 
980, 000 
Cubal 
_.| 
2,897,780 | 2,811/000 | 2,933)500 | 2,956,000} 
2, 978, 500 
“Fall duty” c 
178, 000 
220, 060 
265, 000 
310, 000 
Dominican Republic. .--.-.-----.- 
29, 984 
58, 393 
74, 408 
90, 221 
105, 739 
Mexico___--.-.-2---2------e 
eee e+ 
12, 432 
31, 564 
40, 218 
48, 768 
57, 184 
Nicaragua_..-..-------.-------- 
&, 498 
7, 
891 
10, 054 
12, 192 
14, 296 
Peru... --------- 2+ 
eee eee 
56, 396 
56, 814 
72, 392 
87, 782 
102, 930 
Haiti_._----.-2-2---22 
2 
.-e 
ee. 
~ 
2, 901 
5, 156 
6, 022 
6, 877 
Costa Rica. _..-2--- 2-2-2 ee. 
2 (1, 084) 
3, 489 
3, 832 
4,382 
5, 697 
Formosa.-.-.-.---. 
2. 2--2-+- eee 
21, 114 
8, 448 
3, 882 
4,447 
5, 181 
Netherlands. 
ee 
eee 
2 (L, 123) 
3, 460 
3, 898 
4, 467 
5, 207 
Panama_-_ 
- 
we nceeee 
2 (1,114) 
3, 448 
3, 882 
4,447 
5,181 
Belgium .___..-.----- .-.-2--.------ 
2 (182) 
182 
182 
182 
182 
British Quiana._. 
2222.22.22 02---. 
2 (85) 
85 
85 
85 
85 
Canada... ..--- 
- 
- 
2 (63)) 
631 
631 
631 
631 
Hong Kong-.-- 
wanes 
2 (8) 
3 
é 
United Kingdom .. 
wee 
2 {516} 
516 
516 
516 
516 
E} Salvador 3. 
_. 2-2-2222 ------- 
4,402 {2-2 ---w-|e 
eee |e eee 
fe eee - 
1 Philippine quota for 1956 is 980,000 tons, may vary slightly in subsequent years. 
2 Average 1953-64 charges against qnotas. 
These countries do not have specific prorations under the pres- 
ent law, 
These entrics are made within the proration for unspecified countries which amounts to 6,037 
tons when requirements are 8,585,000 tons. 
3 No entries since 1949, 
In view of the long-term commitments and planning necessary for 
the efficient operation of the sugar-producing industry, the committee 
feels that a 6-year extension is desirable. 
The House bill provided 
for a 4-year extension. 
The bill as reported by the committee also 
extends’ the termination date 
of taxes under the Interna] Revenue 
Code for 6 years. 
The bill as reported by the committee differs from the House~passed 
bill in the following minor respects: 
(1) Section 4 of both bills provides for hearings in connection with 
determimations which may be made by the Secretary concerning the 
meaning of the term ‘to be further refined or improved in quality.” 
The bill as reported by the committce provides for procedures to be 
followed in making that determination that would be consistent with 
the procedures now followed in administering other provisions of the 
sugar act. 
(2) In section 15 of the bill a reference in the same section of the 
House bill to the entire direct-consumption portion of the quota is 
changed to the unfilled part of the direct-consumption portion of the 
quota. 
(3) Section 22 of this bill differs from the corresponding section of 
the House bill (sec. 23) with respect to the effective date of sections 
1 through 4. 
The House bill passed last July would have permitted 
the preparation and issuance of regulations during the remainder of 
1955, whereas this bill grants such necessary time after enactment in 
1956. 
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20 
EXTENSION OF SUGAR ACT. OF 1448 
ANALYSIS OF THE BILL 
Definitions 
; 
Sections 1 through 4 of the bill amend certain definitions contained 
in title I of the Sugar Act of 1948, as amended. 
In general, these 
amendments 
clarify the definitions 
to coincide with 
the evident 
intent of the act. 
In addition, the amendment provides more specific 
instructions for administering those provisions of the act dependent: 
upon definitions. 
The first and seconc! sections of the bill amend subsections (d) and 
fe) of section 101 of the act. 
Subsections (d) and (e) define raw 
sugar and direct-cons:iumption sugar, respectively. 
The wording of 
the present definitions is such that it is doubtful whether some liquid 
sugar from domestic offshore areas should be classified as either raw 
or direct-consumption sugar, although a literal interpretation of the 
present definitions would permit liquid sugar of refined quality from 
domestic offshore areas to entcr within the overall quotas without 
regard to the direct-consumption limitations. 
The amendments to 
these two subsections clarify the present definitions to permit the 
classification for quota purposes of liquid sugar fram domestic off- 
shore areas as either raw or direct-consumption suger. 
Such elassifi- 
cation is i accordance with the principle that is applied to the 
classification. of crystalline sugar. 
The amendments are intended to 
exclude from the raw and direct consumption definitions liquid sugar 
from all foreign countries. 
Liquid sugar entries from such countries 
are limited by sections 208 and 212 of the act. 
Thea mended defini- 
tions of raw and direct-consumption sugar are supplemented by, and 
are to be read in the light of, the provisions of the new subsection (n). 
Section 3 of the bill amends subsection (i) of section 101 of the act: 
by striking out the parenthetical word 
“(Clerget).”’ 
The word 
“Clerget” refers to an analytical method and its deletion does not affect 
the meaning of the term “total sugar content”? which is defined in 
subsection 0). 
Its deletion in the amendment, however, eliminates 
the requirement of the use of a method (the Clerget method) for 
determining sucrose in the measurement of total sugar content. 
The 
amendment permits ths utilization 
of newer and more accurate 
methods for such determinations. 
Section 4 of the bill adds a new subsection (n) to section 101 of the 
act. 
The amendment defines the term “to be further refined or 
improved in quality,” which is contained in both the raw and direct- 
consumption sugar definitions and which is a criterion for distinguish- 
ing raw from direct-corsumption 
sugar for quota 
purposes. 
The 
definition of the term “to be further refined or improved in quality” 
basically establishes the minimum processing to which sugar must be 
subjected before it can be classified as raw sugar. 
In the event there 
is any question as to the processes to which raw suger is to be sub- 
jected or as to the specific qualities of sugar which may be so processed, 
the amendment also provides the Secretary with authority to hold 
hearings to determine whether specific processes to which sugars are 
subjected meet the requirements of the standards established by the 
amendment or whether sugars of specific qualities are of raw or direct- 
consumption sugar quality. 
‘The amendment gives clearer guidance 
to the Secretary in administering those provisions of the act, which 
requires him to classify sugar as raw or direct consumption for making 
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EXTENSION OF SUGAR ACT OF 1948 
21 
the proper quota charges. 
‘The amendment permits the Secretary to 
consider the type and extent of processing and the quality of sugar 
in addition to the use criterion contained in subsections (d) and (e) 
in distinguishing raw sugar from direct-consumption sugar. 
Price objective 
Section 5 merely amends the base period for the consideration that 
the Secretary is directed in section 201 of the act to give to the 
relationship between the wholesale price of refined sugar and the 
general cost of living in the United States. 
The bill change: the 
base period from January through October 1947 to the now genorally 
accepted statistical base period of 1947--49. 
(uotas 
Section 6 amends subsection 202 (a) of the act which establishes 
quotas for the domestic areas. 
The present fixed quotas for these 
areas are retained and, in addition, the domestic areas are assigned 
55 percent of all increases in sugar requirements of the continental 
United States in excess of 8,350,000 fons, raw value. 
The first 
165,000 tons, or any part thereof, by which quotas for the domestic 
areas are so increased is apportioned 51.5 percent to the domestic 
beet area and 48.5 percent to the mainland cane area; the next 20,000 
tons are assigned to Puerto Rico; and the next 3,000 tons to the 
Virgin Islands. 
Thereafter, increases are apportioned on the basis 
of the then existing quotas. 
Section 7 amends subsection 202 (c) of the act which establishes 
quotas for foreign countries other than the Republic of the Philip- 
pines. 
The total of such quotas which results from consumers’ 
requirements of 8,350,000 tons or less is the same as that presently 
established under the act. 
The effect of section 6 of the bill with 
respect to these quotas, it will be recalled, is to change participation 
in consumption requirements in excess of 8,350,000 tons from 100 
percent as provided under the present act to 45 percent. 
In 1956, the proration of the quota among such countries conforms 
to the terms of the present act. 
In 1957 Cuba, retains 96 percent and 
other such foreign countries 4 percent of the quota resulting from 
sugar requirements of 8,350,000 tons or less. 
The 45 percent of sugar 
requirements in excess of 8,350,000 short tons so assigned is dis- 
tributed 33.8 percent to Cuba, 4 percent to Peru, 2 percent to the 
Dominican Republic, 4 percent to Mexico and 1.2 percent to other 
such foreign countries. 
In 1957, the proration of 4 percent of the quota for foreign countries 
other than Cuba and the Republic of the Philippines (resulting from 
sugar requirements of 8,350,000 tons or less) is accomplished first 
by assigning to each such foreign country whose average entries 
within its quota for 1953 and 1954 were less than 1,000 short tons, a 
proration equal to its average entries during those years; second, by 
assigning to each such foreign country whose average entrics within 
its quota during 1953 and 1954 were not Jess than 1,000 nor more 
than 2,000 short tons, a proration of 3,000 short tons; third, by 
assigning to each such foreign country whose average entries within 
its quota during 1953 and 1954 were not less than 2,000 nor more 
than 10,000 short tons, a proration equal to its average entries within 
its quota during those years plus 1,000 short tons; and finally, by 
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9? 
EXTENSION OF SUGAR ACT OF 1948 
prorating the balance to such forcign countries whose average entries 
within the quotas during 1958 and 1954 exceeded 10,000 short tons, 
on the basis of the uverage entries withm the quotas for each such 
country for the years 1951 to 1954, inclusive. 
In 1958 and subsequent years, the proration of 4 percent of the 
quota for foreign countries other than Cuba and the Republic of the 
Philippines (resulting from sugar requirements of 8,350,000 tons or Jess} 
is accomplished first, »v assigning to each such forcign country whose 
avcrage entries within its quota during the years 1953 and 1954 were 
less than 1,000 short tons, a proration equal to its average entrics 
during those years; and second, by prorating the balance of the pro- 
ration of 4 percent among the remainder of such countries on the 
basis of the final quotas established for such countries for the calendar 
year 1957. 
In 1957 as well as 1958 and subsequent years, the proration of 1.2 
percent of sugar requ-rements in excess of 8,350,000 tons to foreign 
sountries other than Cuba, the Republic of the Philippines, Peru, 
the Dominican Republic, and Mexico would be prorated on the same 
basis as the quota resulting from sugar requirements of 8,350,000 
tons is prorated among: such countries. 
Section 8 of the bill adds a new subsection (c) which affects those 
foreign countries: having quotas in excess of 10,009 short tons. 
In 
the event any such country hereafter fails by more than 10 percent. 
to fill its quota or proration in any year during which the world 
price of sugar exceeds the domestie price, its quota in subsequent 
years shall be reduced by an amount equal to that by which the 
country failed to fill iis quota or proration, unless failure te do so 
was due to crop disaster or force majeure, or the Secretary determines 
that such quota reduction would be contrary to the objectives of the 
act. 
The amendment encourages continued deliveries of sugar from 
foreign countries even when price considerations are more favorable 
in the world market. 
The amendment provides that any quota 
reduction shall be proraied in the same manner as a deficit is prorated 
under section 204 of the act. 
Proration of deficits 
Section 9 amends section 204 of the act, which establishes the method 
of prorating deficits. 
he effect of the change is to prorate to the 
domestic areas alone, rather than to Cuba and domestic areas, any 
deficit in a domestic sugar-producing area quota which occurs because 
of inability to market that part of its quota resulting from sugar 
requirements in excess of 8,350,000 short tons. 
A further change 
directs the Secretary, in the event a domestic area is unable to fill 
its proration of any defie.t resulting from sugar requirements in excess 
of 8,350,000 short tons, to apportion such unfilled amount to such 
other domestic areas whch are able to fill the deficit. 
In the event 
no domestic area can supply the needed sugar, the Secretary is directed 
to add such unfilled amount to the quota for Cuba. 
Allotment of quotas or prorations 
Section 10 amends section 205 (a) of the act by authorizing the 
Secretary, when he allots any area’s quota or proration, to consider, 
in addition to the factors presently specified and to make appropriate 
allowance for the adverse effect of drought, storm, flood, freeze, disease, 
ae 
Fr 
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See 
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insects, and other uncontrollable 
conditions which seriously and 
broadly affect a general arca served by the factory or factories of 
any allottce. 
This amendment addresses 
itself to the effects of 
adverse natural conditions and not to adverse economic circumstances. 
Direct-consumption sugar limitations 
Section 11, which amends section 207 (a) of the act, provides that 
portions of the quotas for Hawaii and Puerto Rico which may be 
filled by direct consumption sugar are to be increased in the same 
proportion as the overall quotas are imereased. 
With respect to 
Puerto Rico, the amendment provides that increases in the direct- 
consumption portion of the quota may be filled by either crystalline 
or liquid sugar, but restricts to crystalline sugar the filling of the 
present direct consumption portion of the quota, which is 126,033 
short tons. 
Section 12 of the bill amends the limitations in section 207 (h) of the 
act with respect to direct consumption sugar which apply to the quota 
of foreign countrics other than Cuba and the Republic of the Philip- 
pines. 
Such countries with overall prorations of 7,000 short tons or 
less may fill their entire proration with direct-consumption sugar. 
The present limitation of 1.36 percent of the quota for foreign countries 
other than the Republic of the Philippines is retained for such countries 
whose prorations exceed 7,000 short tons. 
Such limitation is prorated 
on the basis of the average importation. of direct-consumption sugar 
within the quota during the years 1951 to 1954 inclusive. 
Conditional payments to domestic producers 
Section 13 of the bill permits the marketing or processing in excess 
of the proportionate share for the farm of sugar beets or sugarcane 
for the production of sugar to be used for livestock feed. 
Section 14 of the bill amends subsection 302 (b) of the act by 
authorizing the Seeretary, in determining proportionate shares with 
respect to domestic sugar-beet and sugarcane farms, to give con- 
sideration, insofar as practicable, to the interest of producers in any 
local-producing 
area whose past production has been adversely, 
seriously, and generally affected by drought, storm, flood, freeze, 
discase, insects, or other similar abnormal and uncontrollable condi- 
tions. 
As in the case of subsection 205 (a), this amendment addresses 
itself to the effect of adverse natural conditions rather than to ad- 
verse economic circumstances. 
Section 14 also authorizes the Secre- 
tary, on application of an owner of a farm in Puerto Rico, to transfer 
the sugarcane production record for any parcel of land owned by 
such applicant in Puerto Rico to any other parcel owned by the 
applicant, if he finds such transfer to be in the public interest be- 
cause of more economic utilization of land resources, conservation of 
soil and water resources, or the fostering of greater diversification of 
agricultural production. 
Administrative provisions 
Section 15 of the bill adds a new, subsection (b) to section 405 of 
iwnates the 
present section 405 as subsection 
(a). 
the act and designates 
Pp 
; 
-processin: 
The amendment provides that any person whose sugar-p 
pets 
a] 
operations meet the requirements of subsection 101 (n) and who 
imports sugar of direct-consumption quality for processing under a 
declaration that such sugar is raw sugar, shall forfeit to the United 
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States 1 cent for each pound of such sugar in excess of the unfilled part 
of the direct-consumption portion of the applicable quota, proration, 
or allotment thereof. 
Since sugar is often entered and partly or 
completely processed before a determination of its quality is made, 
it is possible that som: sugar declared to have been raw sugar will 
be determined to have been of direct-consumption quality when en- 
tered. 
If such sugar is in excess of the unfilled portion of the direct- 
consumption quota, proration, or allotment thereof, forfeiture of 1 
cent per pound is provided. 
This forfeiture is considered sufficient 
to make it unprofitable 
to enter for further processing direct- 
consumption sugar in excess of the direct-consumption limitations. 
Section 16 of the bill amends section 407 of the act to provide that 
the provisions of that section shall not apply to persons whose services 
are utilized in the administration of the act pursuant to section 305. 
The application of the provisions of section 407 to such persons who 
do not have access to information that might aid them in investing 
or speculating in sugar has on occasion precluded the Department 
from obtaining the services of persons who are best qualified to serve 
in field offices. 
The <ifficulties have been most acute and embar- 
rassing in areas served by cooperative sugar mills. 
The amendment 
does not remove the restrictions of section 407 from Washington 
officials who do have information that would be of value in investing 
or speculating in sugar, but it does permit the employment of State, 
county, and community committeemen and employees who own stock 
in a sugar company or who are members of a cooperative mill. 
Section 17 of the bill inserts a new section 411 and renumbers 
present sections 411 ard 412 of the act. 
The amerdment authorizes 
the Secretary of Agriculture to reconcile imports of sugar from forei 
countries with the Government’s obligation under article 7 of the 
International Sugar Avreement (ratified by and with the advice and 
consent of the U. S. Senate on April 29, 1954). 
The amendment 
restricts imports of orly those countries that do not participate in 
ihe agreement. 
The amendment permits the Secretary to take similar 
action on the correspor.ding provisions of successor agreements ratified 
by and with the advice and consent of the United States Senate. 
Period for which bill is effective 
Section 18 amends renumbered section 412 of the act and provides 
for termination of the s.ct on December 31, 1962. 
Under the provision 
of the act the Secretary has authority to make payments under title It 
on programs applicable for the crop year 1962 and previous crops. 
Section 19 extends io June 30, 1963, the period during which the 
excise and import compensating tax is applicable to sugar. 
Section 22 of the bill provides that the amendments shall become 
effective January 1, 1956, except as otherwise provided. 
In particu- 
lar, sections 1 through 4 will become effective upon implementation 
by publication of regulations in the Federal Register or 6 months after 
she date of enactment of this bill into law, whichever is earlier. 
Amendments to the Internal Revenue Code 
Section 20 of the bill amends section 4502 (4) of the 1954 Internal 
Revenue Code. 
‘has section of the code defines the term “total 
sugars” similarly to th» term “total sugar content” contained in section 
101 (i) of the act and refers to Customs Regulations of 1930, which 
AEG 
APT 
RTT FOUL 
OE 
PLATONIC 
SEL 
LL 
ERE 
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have since been superseded. 
The amendment in no way affects the 
meaning of the term “total sugars” and permits the Treasury Depart- 
ment to use methods that are most appropriate to the determination 
of total sugars. 
Section 21 of the bill amends section 4505 and 6418 (a) of the Inter- 
nal Revenue Code of 1954. 
The amendments provide that the im- 
port compensating tax on manufactured sugar imported into the 
United States for use in the distillation of alcohol or for livestock feed 
may be refunded. 
Section 212 of the sugar act exempts from quotas 
any sugar or liquid sugar used for such purposes. 
However, tax 
exemption under the Internal Revenue Code has been only partly 
consistent with the quota exemption. 
The excise tax applicable to 
sugar manufactured in the United States has been refundable on sugar 
used for livestock feed or for the distillation of alcohol, but the import 
compensating tax applicable to manufactured sugar imported into 
the United States has not been refundable on sugar used for the same 
purpose. 
The amendment provides that either the excise tax or the 
import compensating tax, whichever is applicable, may be refunded 
on sugar used for livestock feed or for the distillation of alcohol. 
CHANGES IN EXISTING LAW 
In compliance with subsection 4 of rule XXTX of the Standing 
Rules of the Senate, changes in eue law made by the bill, as 
reported, are shown as follows (existing law proposed to be omitted 
is enclosed in black brackets, new matter is printed in italics, existing 
law in which no change is proposed is shown in roman): 
SUGAR ACT OF 1948, AS AMENDED 
TITLE I-—-DEFINITIONS 
Suc. 101. For the purposes of this Act, except title Vv 
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(d) [The term “raw sugar” means any sugars which are principally of erystal- 
line structure and which are to be further refined or improved in quality, and 
any sugars which are principally not of crystalline structure, but which are to 
be further refined or otherwise improved in quality to produce any sugars prin- 
cipally of crystalline structure.J 
The term “raw sugar’ means 
any sugars 
exclusive of liquid sugar from foreign countries having liquid sugar quotas), whether 
or not principally of crystalline structure, which are to be further refined or umproved 
in 
quality to produce any sugars principally of crystalline structure or liquid sugar. 
e) [The term 
“direct-consumption 
sugar’? means 
any sugars which are 
principally of crystalline structure and which are not to be further refined or 
otherwise improved in quality.] 
The term “direct-consumption sugar’ means 
any sugars principally of crystalline siructure and any liquid sugar 
(exclusive of 
liquid sugar from foreign countries having liquid sugar quotas), which are not to be 
further refined or improved in quality. 
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G) The term “total sugar content’ means the sum of the sucrose [(Clerget)] 
and reducing or invert sugars contained in any grade or type of sugar or liquid 
sugar. 
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* 
(n) The term ‘to be further refined or improved in quality” means to be subjected 
substantially to the processes of (1) affination or defecation, (2) clarification, and 
(8) further purification by adsorption or crystallization. 
The Secretary 1s authorized, 
after such hearing and upon such notice as he may by regulations prescribe, to deter- 
mine whether specific processes to which sugars are subjected are sufficient to meet the 
requirements of this paragraph (n) and whether sugars of specific qualities are raw 
sugar within the meaning of paragraph (d) of this section, or direct-consumption 
sugar within the meaning of paragraph (e) of this section. 
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TITLE II—QUOTA PROVISIONS 
Sxc. 201. The Secretary shall determine for each calendar year, beginning with 
uhe calendar year 1948, tke amount of sugar needed to meet the requirements of 
ronsumers in the continental United States ; such determinations shall be made 
during the month of December in vach year for the succeeding calendar year 
in the case of the calendar year 1948, during the first ten days thereof) and at 
such other times during such calendar year as the Secretary may deem necessary 
tio meet such requirements. 
In making such determinations the Secretary shall 
ise as a basis the quantity of direct-consumption sugar distributed for consump- 
tion, as indicated by offic al statistics of the Department of Agriculture, during 
the twelve-month period ending October 31 next preceding the calendar year for 
which the determination is being made, and shall make allowances for a deficiency 
or surplus in inventories of sugar, and for changes in consumption because of 
changes in population and demand conditions, as eomputed from statistics pub- 
lished by agencies of the I?ederal.Government; and, in order that such determi- 
nations shall be made so as to protect the welfare of consumers and of those 
engaged in the domestic sugar industry by providing such supply of sugar as will 
be consumed at prices which will not be excessive to consumers and which will 
fairly and equitably mairtain and protect the welfare of the domestic sugar 
industry, the Secretary, in making any such determination, in addition to the 
consumption, inventory, population, and demand factors above specified and the 
level and trend of consum3r purchasing power, shall take into consideration the 
relationship between the prices at wholesale for refined sugar that would result; 
from such determination and the general cost of living in the United States as 
: 
compared with the relationship between prices at wholesale for refined su gar and 
the general cost of living in the United States obtaining during [1947 prior to 
the termination of price coritrol of sugar] 1947-49 as indicated by the Consumers’ 
Ae Index as published bv the Bureau of Labor Statistics of the Department of 
aber. 
Sec. 202. Whenever a determination is made, pursuant to seetion 201, of the 
amount of sugar needed to meet the requirements of consumers, the Seerctary 
shall establish quotas, or revise existing quotas-— 
(a) (4) For domestic suzar-produeing areas[,] by apportioning among such 
areas four million four hurdred and forty-four thousand short tons, raw value, 
ass follows: 
Short tons, 
Area 
raw value 
Lomostic beet sugar... 
1, 800, 000 
Mainland cane sugar..___....._........___..__..__......... 
500, 000 
VAN Bil ins 
ie ee aaa 
ene Ge data Re aed Goal eb oes etl ee 
© 
1, 052, 000 
WP dert@: HAG. 2 
0 etl ees 
i hea 
a 
ett ite, pale 
Bae 
ae tn 
1, 080, 000 
Virgin dslands:..2. 
008 
ot Jc un so 8 A 
a 
eo 
ile ere 
uote 
12, 000 
(2) To the above total of four million four hundred forty-four thousand short tons, 
raw value, there shall be added an amount equal to 55 per centum of the amount by 
which the Secretary’s determination of requirements of consumers in the continental 
United States for the calendar year exceeds eight million three hundred and fifty 
thousand short tons, raw value. 
Such qudnignal mimo shall be apportioned among 
and added to the quotas estaslished under paragraph (1) of this subsection for such 
domestic sugar-producing arcas, respectively, as follows: (A) The first one hundred 
sisty-five thousand short tons. raw value, or any part thereof, by which quotas for the 
domestic areas are so increas7d shall be apportioned 51.6 per centum to the domestic 
beet sugar area and 48.5 per centum to the mainland cane sugar area; (B) the next 
iwenty thousand short tons, raw value, or any part thereof, by which such quotas are 
so inercased shall be apportioned to Puerto Rico; (C) the next three thousand short 
tons, raw value, or any part thercof, by which such quotas are so increased shall be 
apporiioned to the Virgin Islands; (D) any additional amount shail be apportioned 
on the basis of the quotas estublished in paragraph (1) of this subsection as adjusted 
by subparagraphs (A), (B), ond (C) of this paragraph (2). 
(b) For the Republic of the Philippines, in the amount of nine hundred and 
fit.y-two thousand short tons of sugar as specified in section 211 of the Philippine 
Trade Act of 1946. 
e) E¥ or] (1) For the calendar year 1956, for foreign countries other than the 
Republic of the Philippines, by prorating among such counsries an amount of 
sugar, raw value, equal to che amount determined pursuant to section 201 less 
ATT) RTS KAT LE NRO 
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the sum of the quotas established pursuant to subsections (a) and (b) of this 
section, on the following basis: 
Per 
Country 
ecentum 
CiaWiden, 
pon ee Soe 
ee he et 
es ee 
ae 
ee ee . 
96 
Foreign countrics other than Cuba and the Republic of the Philippines-_-..- 
4 
Ninety-five per centum of the quota for foreign countries other than Cuba 
and the Republic of the Philippines shall be prorated among such countries on 
the basis of the average amount imported from each such country within the 
quotas established for the years 1948, 1949, and 1950, except that a separate 
proration need not be established for any country which entered less than 2 
per centum of the average importations within the quotas for such years. 
The 
amount of the quota not so prorated may be filled by countries not recciving 
separate prorations, but no such country shall enter an amount pursuant to 
this subsection in execss of 1 per centum of the quota for foreign countries other 
than Cuba and the Republic of the Philippines. 
(2) For the calendar year 1 957 and for each subsequent calendar year for foreign 
countries other than the Republic of the Philippines, by prorating (A) to Cuba 96 per 
centum and (B) to other foreign countries 4 per centum of the amount of sugar, raw 
value, by which eight million itiree hundred and fifty thousand short tons or such lesser 
amount as determined pursuant io section 201 exceeds the sum of four million four 
hundred and forty-four thousand short tons, raw value, and the quotas established 
cursuant to subsection (b) of this section; and by prorating 45 per centum of the 
amount 
of sugar, raw value, by which the amount determined pursuant to section 201 exceeds 
the sum of cight million three hundred and fifty thousand short tons as follows: 
Country 
Per centum 
Cubu.__--- 
“eal: 
notaat th apes ee 
ea ads $2 SE See seer SSS 
ET eR Ane: 
33. 8 
PA 
ee ton oo 
ena aaa ae tae sae aa eens ome rg re eae 
ar ao 
4.0 
Dominican Rerublic..------~----- 
------- nro 
2.0 
MEG 
00 kes oa 
Scie 
eta 
ea eek 
es he AES erg IT 
4.0 
Other countries... 
-------- 
ee ene ene 
1.2 
45.0 
The above proration of 1.2 per centum to foreign countries other than Cuba, the Re- 
cublic of the Philippines, Peru, the Dominican Republic, and Mexico shall be appor- 
tioned on the basis of the aprortionments to such countries under paragraph. (3) of 
this subsection. 
(8) For the calendar year 1987, the proration of 4 per centum under paragraph 
(2) (B) of this subsection for foreign countries other than Cuba and the Republic of 
the Philippines shall be apportioned, first, by assigning to each such foreign country 
whose average entries within the quotas during the years 1958 and 1954 were less than 
one thousand short tons, raw value, & proration equal to iis average entries within the 
quotas during 1958 and 1954, and second, by asst. ming to each such foreign country 
whose average entries within the quotas during 1963 and 1954 were not less than one 
thousand nor more than two thousand short tons, raw value, a proportion of three 
thousand short tons, raw value, and third, by assigning to each foreign country whose 
average entries within the quotas during 1953 and 1954 were not less than two thou- 
sand nor more than ten thousand short tons, raw value, a proration equal to the 
average entries from cach such country within the quotas during 1953 and 1954, plus 
one thousand short tans, raw value, and fourth, by prorating the balance of such quota 
to such foreign countries whose average entries within the quotas during 1968 and 
1964 exceeded ten thousand short tons, raw value, on the basis of the average entries 
within the quotas from each such country for the years 1961, 1952, 1953, and 1954. 
For the calendar year 1958 and for each subsequent calendar year, the proration 
of 4 per centum under paragraph (2) (B) of this subsection for foreign countries 
other than Cuba and the Republic of the Philippines shall be apportioned, first, by 
assigning to each such fi oreign country whose average entries within the quotas during 
the years 1953 and 1954 were less than one thousand short tons, raw value, @ pro- 
ration equal io its average entries within the quotas during 1953 and 1954, and 
second, by prorating the balance of such quota among the remainder of such countries 
on the basis of the final quotas established for such countries pursuant to this section 
for the calendar year 1987. 
: 
; 
(d) Notwithstanding the other provisions of this title II, the minimum quota 
established for Cuba, including increases resulting from deficits determined pur- 
guant to section 204 (a), shall not be less than the following: 
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EXTENSION OF SUGAR ACT OF 1948 
(1) 28.6 per centur of the amount of sugar determired under section 201 
en such amount is seven million four hundred thousand short tons or less ;: 
an 
(2) two million one hundred and sixteen thousand short tons, when the 
amount of sugar determined under section 201 is more than seven million 
four hundred thousand short tons, 
‘The quotas for domestic Sugar-producing areas, established pursuant to the other 
provisions of this title II, shall be reduced pro rata by such amounts as may be 
required to establish such ninimum quota for Cuba. 
(e) Whenever in any year any foreign country with a quota or proration ear of 
more than ten thousand short tons fails to 
fill such quota or proration by more than 
10 per centum and at any time during such 
year the world price of sugar exceeds the 
domestic price, the quota or proration thereof for such country for subsequent years 
shall be reduced by an amount equal to ihe amount by which such country failed 
to fill 
at quota or proration thereof, unless the Secretary finds that such failure was due to 
crop disaster or force majeure or Jjinds that such reduction would be contrary to the: 
objectives of this Act. 
Any reduction hereunder shail be prorated in the same manner 
as deficits are prorated under section 2C4. 
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Src. 204. (a) The Seeretary shall from time to time determine whether, in 
view of the current inventoties of sugar, the estimated production from the acreage 
of sugarcane or sugar bects planted, the normal marketings within a ealendar year 
of new-crop sugar, and other pertinent, factors, any area will be unable to market 
the quota for such area. 
If the Secretary finds that any domestic area or Cuba 
determined to the other such areas on the basis of the quotas then in effect: Pro- 
vided, That any deficit in any domestic sugar-producing area oceurring by reason of 
inability to market that part of the quota for such area allotted under the provisions of 
section 202 (a) (2) shail first be prorated io other domestic areas on the basis of the 
quotas then in effect. 
If the Secretary finds that the Republic of the Philippines 
will be unable to market the quota for such area, he shall revise the quotas for 
Cuba and foreign countries other than Cuba and the Republic of the Philippines 
by prorating 
an amount of sugar equal to the deficit so determined, as follows: 
To 
Cuba, 96 per cenium; and 
To foreign countries other than Cuba and the Republic of the Philippines, 
4 per centium. 
If the Secretary finds thar foreign countries other than Cuba and the Republie 
of the Philippines cannot fill the quota, for such area, he shall increase the quota 
for Cuba by an amount equal to the deficit, 
Whenever the Secretary finds that any area will be unable to fill its proration 
of any such deficit, he may apportion such unfilled amount on such basis and to 
such areas as he determines is required to fill such deficit; except that in the case of 
proration of any such deficit in any domestic sugar-producing area occurring by 
reason of inability to market that part of the quota for such area allotted under and 
by reason of section 202 (a) (2), the Secretary shall apportion the unfilled amount 
on such basis and to such other domestic areas as he determines is required to fill such 
deficit, and if he finds that .0 domestic area will be able to supply such unfilled 
amount, he shall add it to the quota for Cuba. 
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Suc. 205. (a) Whenever the Secretary finds that the allotment of any quota, 
or proration thereof, established for any area pursuant to the provisions of this 
Act, is necessary to assure an orderly and adequate flow of sugar or liquid sugar 
in the channels of interstate or foreign commerce, or to prevent disorderly market- 
ing or importation of sugar or liquid sugar, or to maintain a coztinuous and stable 
supply of sugar or liquid sugar, or to afford all interested persons an equitable 
opportunity to market sugar or liquid sugar within any area’s quota, after such 
hearing and upon such notice as he may by regulations prescribe, he shall make 
allotments of such quota or proration thereof by allotting to persons who market, 
or import sugar or liquid sugar, for such periods as he may designate, the quantities 
of sugar or liquid sugar whiel. each such person may market in continental United 
States, the Territory of Hawaii, or Puerto Rico, or may import or bring into con- 
tinental United States, for consumption therein. 
Allotments shall be made in 
such manner and in such amounts as to provide a fair, efficient, and equitable 
distribution of such quota or proration thereof, by taking into consideration the 
processings of sugar or liquid sugar froin sugar beets or sugarcane to which 
pro- 
portionate shares, determined pursuant to the provisions of subsection 
(b) 
of 
LILLE LEGAL LS LOL 
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29 
section 302, pertained; the past marketings or importations of each such person; 
and the ability of such person to market or import that portion of such quota or 
proration thereof allotted to him. 
In making such allotments, the Secretary may 
also take into consideration and make due allowance for the adverse effect of drought, 
storm, flood, freeze, disease, insects, or other similar abnormal and uncontrollable 
conditions seriously and broadly affecting any general area served by the factory or 
factories of such person. 
The Secretary may also, upon such hearing and notice as 
he may by regulations prescribe, revise or amend any such allotment upon the 
same basis as the initial allouoment was made. 
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Sec. 207. (a) Not more than twenty-nine thousand six hundred and sixteen 
short tons, raw value, of the quota for Hawaii for any calendar year, plus an 
amount equal to the same percentage of twenty-nine thousand six hundred and sixteen 
short tons, raw value, that the increase tn the quota for Hawaii under section 202 is of 
one million fifty-two thousand short tons, raw value may be filled by direct- 
consumption sugar. 
(b) Not more than one hundred and twenty-six thousand and thirty-three short 
tons, raw value, of the quota for Puerto Rico for any calendar year may be filled 
by direct-consumption sugar[[.J which shall be principally of crystalline structure, 
plus an amount equal to the same percentage of one hundred twenty-six thousand and 
thirty-three short tons, raw value, that the increase in the quota for Puerto Rico under 
section 202 is of one million eighty thousand short tons, raw value, which latter amount 
may be filled by direct-consumption sugar whether or not principally of crystalline 
structure. 
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(h) [The] (1) For the calendar year 1956, the quota for foreign countries other 
than Cuba and the Republic of the Philippines may be filled by direct-consump- 
tion sugar only to the extent of 1.36 per centum of the amount of sugar detcrmined 
pursuant to section 201 less the sum of the quotas established in subsections (a) 
and (b) of section 202: Provided, That each such country shall be permitted to 
enter an amount of direct-consumption sugar not less than the average amount 
entered by it during the years 1948, 1949, and 1950. 
(2) For the calendar year 1957 and each subsequent calendar year, the quota for 
foreign countries other than Cuba and the Republic of the Philippines may be filled 
by direct-consumption sugar to the extent of 1.36 per centum of the amount of sugar 
determined pursuant to section 201 less the sum of the 
quotas established in sub- 
sections (a) and (b) of section 202: Provided, That such limitation shall not apply 
to countries receiving prorations under Section 202 (c) of 7,000 short tons or less. 
The direci-consumption portion of such quota whick is subject to the 1.86 per centum 
limitation referred to above shall be prorated to countries which receive prorations 
under section 202 (c) of more than 7,000 short tons on the basis of average imports 
of direct-consumption sugar within the quota for the years 1951, 1952, 
1958, and 1954. 
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TITLE III—CONDITIONAL-PAYMENT PROVISIONS 
Sze. 301. The Secretary is authorized to make payments on the following 
conditions with respect to sugar or liquid sugar commercially recoverable from the 
sugar beets or sugarcane grown on a farm for the extraction of sugar or liquid 
sugar: 
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* 
(b) That there shall not have been marketed (or processed), except for livestock 
feed, or for the production of livestock feed, as determined by the Secretary, an amount 
(in terms of planted acreage, weight, or recoverable sugar content) of sugar 
beets or sugarcane grown on the farm and used for the production of sugar or 
liquid sugar to be marketcd in, or so as to compete with or otherwise directly 
affect interstate or foreign commerce, in excess of the proportionate share for the 
farm, as determined by the Secretary pursuant to the provisions of section 302, 
of the total quantity of sugar beets or sugarcane required to be processed te enable 
the area in ‘which such sugar beets or sugarcane are produced to meet the quota 
(and provide a normal carry-over inventory) as estimated by the Secretary for 
such area for the calendar year during which the larger part of the sugar or liquid 
sugar from such crop normally would be marketed. 
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Sxc. 302. * * * 
(b) In determining the proportionate shares with respect to a farm, the Secre- 
tary may take into consideration the past production on the farm of sugar beets 
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re) 
and sugarcane marketed 
{or processed) 
within the proportionate share for the 
extraction of sugar or liquid sugar and the ability to produce such sugar beets or 
sugarcane, and the Secresary shall, insofar as practicable, protect the interests 
of new producers and small producers and the interests of producers who are 
cash tenants, share tenants, adherent planters, or share croppers [.]] and of the 
producers in any local producing arca whose past production has been adversely, 
seriously, and generally affected by drought, storm, flood, freeze, disease, insects, or 
other similar abnormal and uncontrollaile conditions. 
For the purposes of establishing 
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TITLE IV—GENERAL PROVISIONS 
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Src. 405. (2) Any perscn who knowingly violates, or attempts to violate, or 
who knowingly participates or aids in the violation of, any of the provisions of 
section 209, or any person who brings or imports into thc continental United 
States direct-consumption sugar after the quantities specified in section 207 have 
(b) Any person whose sugar processing operations otherwise meet the requirements 
of section 101 (n) and who subjects to such Processes sugar imported or brought into 
quota or proration or allotment thereof remaining unfilled at the time of such deter- 
mination, which forfeiture shall be recoverable in @ ciwil suit brought in the name of 
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* 
Seo. 407, No person shall, while acting in any official capacity in the ad- 
ministration of this Act, invest or speculate in sugar or liquid sugar, contracts 
relating thereto, or the stock or membership interests of any association or corpora- 
tion engaged in the production or manufacturing of sugar or liquid sugar. 
Any 
person violating this section shall upon conviction thereof be fined not more than 
$10,000 or imprisoned not more than two years, or both. 
The provisions of this 
section shall not apply to persois whose services are obtained pursuant to section 808. 
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Sno. 411. The Secretary is authorized to issue such regulations as may be neces- 
sary to carry out article 7 of the International Sugar Agreement for the Regulation 
of the Production and Marketing of Sugar (ratified by and with the advice and con- 
sent of the United States Senate on April 29, 1954), restricting importaitons of 
sugar into the United States from foreign countries not parhicrpating in such agree- 
ment, or to carry out the corresponding provisions of any such future agreements 
ratified by and with the advice: and consent of the United States Senate. 
[Szc. 411.] Sze. 412. The powers vested in the Secretary under this Act shall 
terminate on December 31, [1956] 1962, except that the Secretary shall have 
power to make payments under title III under programs applicable to the erop 
year [1956] 1962 and previous erop years. 
[Sxc. 412.] Szc. 418. The provisions of this Act, except where an carlier effec- 
tive date is provided for here:n, shall become effective January 1, 1948. 
As pro- 
vided in section 513 of the Sugar Act of 1937, the powers vested in the Secretary 
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EXTENSION OF SUGAR ACT OF 1948 
3l 
AMENDMENTS TO THE INTERNAL REVENUE CODE OF 1954 
SEC, 4501 
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(c) Teemination or Tax.—No tax shall be imposed under this subchapter on 
the manufacture, use, or importation of sugar or articles composed in chief value 
of sugar after June 30, [1957] 1968. 
Notwithstanding the provisions of sub- 
section (a) or (b), no tax shall be imposed under this subchapter with respect to 
unsold sugar held by a manufacturer on June 30, [1957] 1963, or with respect 
to sugar or articles composed in chief value of sugar held in customs custody or 
control on such date. 
With respect to any sugar or articles composed in chief 
value of sugar upon which tax imposed under subsection (b) has been paid and 
which, on June 30, [1957] 1963 are held by the importer and intended for sale 
or other disposition, there shall be refunded (without interest) to such importer, 
subject to such regulations as may be prescribed by the Secretary or his delegate, 
an amount equal to the tax paid with respect to such sugar or articles composed 
in chief value of sugar. 
SEC, 4502 
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(4) Toran sucars.—The term “total sugars’’ means the total amount 
of the sucrose 
[(Clerget)] and of the reducing or invert sugars. 
[The 
total sugars contained in any grade or type of manufactured sugar shall 
be ascertained in the manner prescribed in paragraphs 758, 759, 762, and 
763 of the United States Customs Regulations (1931 edition).] 
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SEC. 4504. IMPORT TAX IMPOSED AS TARIFF DUTY 
The tax imposed by section 4501 (b) shall be levied, assessed, collected, and 
paid in the same manner as a duty imposed by the Tariff Act of 1930 ard shall be 
treated for the purposes of all provisions of law relating to the customs revenue 
as a duty imposed by such Act, except that for the purposes of sections 336 and 
350 of such Act such tax shal! not be considered a duty or import restriction, 
and except that no preferenee with respect to such tax shalk be accorded: any 
articles imported or brought into the United States and except that such lax may 
be subject to refunds as a tax urusler the provisions of section 6418 (a). 
SEC. 6112. FLOOR STOCKS REFUNDS 
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(d) Sucar.— With respect to any sugar or articles composed in chief value of 
sugar upon which tax imposed under section 4501 (b) has been paid and which, 
on June 30, [1957] (963, are held by the importer and intended for sale or ather 
disposition, there shall be refunded (without interest) to such importer, subject 
to such regulations as may be prescribed by the Secretary or his delegate, an 
amount equal to the tax paid with respect to such sugar or articles composed in 
chief value of sugar. 
SEC, 6418. SUGAR 
(a) Use As Livestock Freep or For Disritiarron or ALCOHOL.~—-Upon the 
use of any manufactured sugar, or article manufactured therefrom, as livestock 
feed, or in the production of livestock feed, or for the distillation of alcohol, there 
shall be paid by the Secretary or his delegate to the person so using such manu- 
factured sugar, or article manufactured therefrom, the amount of any tax paid 
under section 4501 [(a)] with respect thercto. 
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Note.—Section 22 of the bill provides that except as otherwise provided the 
amendments made by the bill shall become cffeetive on January 1, 1956, except 
that sections 1 through 4 shall become effective upon publication in the Federal 
Register of regulations implementing such sections, or six months after the date 
of enactment of this Act, whichever is carlier. 
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