Foreign Relations of the United States, 1969–1976, Volume E–11, Part 1, Documents on Mexico; Central America; and the Caribbean, 1973–1976

331. Telegram 4815 From the Embassy in the Dominican Republic to the Department of State¹

Santo Domingo, November 26, 1973, 1943Z.

4815. Subject: GODR Concern Over Future of Sugar Quota.

1. On Nov. 23 Fon Sec Gomez Berges called me to his office to express official GODR concern over press reports that U.S. may be contemplating abandoning sugar quota system. After undertaking to convey his government’s views, I explained that press article referred to a study within the Dept of Agriculture examining various options to be considered for governing future sugar imports upon expiration of existing legislation. The study was just that and did not reflect administration’s policy, I continued. I observed that the local press had also carried Congressman Poage’s reported opposition to abandoning the sugar quotas, opposition that would carry considerable weight in deliberations over future sugar imports. The FonSec appeared relieved to learn that no final decision had yet been taken by USG and that there was some possibility that the quota system might be retained.

2. Comment: The Dept is aware of the high degree of DR dependence on sugar and the importance it attaches to the stability that the quota system provides it for production and marketing purposes. Although the DR will lose an estimated fifteen million dollars this year by supplying the U.S. market rather than selling on the world market, government sugar policy is nevertheless devoted to demonstrating to the U.S. that the DR is a reliable supplier within the quota system. We shall appreciate continuing to be kept informed of U.S. policy toward future sugar imports as it evolves.

Hurwitch

1. Summary: The Embassy reported on the Dominican Government’s concern about the possibility of revisions to legislation under which sugar-producing nations such as the Dominican Republic were assigned quotas that gave them guaranteed access a share of the U.S. sugar market.

   Source: National Archives, RG 59, Central Foreign Policy File, [no film number]. Limited Official Use. In telegram 225729 to all American Republic and certain other diplomatic posts, November 15, the Department reported that an interagency review of the possibility of extending or replacing the existing Sugar Act was under way and that while the Department of Agriculture favored a market-oriented system that would eliminate quotas, no official administration position on the issue had been determined. (Ibid.) In telegram 226599 to Santo Domingo, November 16, the Department noted that Dominican Ambassador Salvador Ortiz had met with Department officers on November 15 on instructions from his government to express opposition to changes in sugar policy that were reportedly under consideration. (Ibid.)