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RESTRICTED RESTRICTED -277- -278- Jones-Costigan Act", authorized the Secretary of Agriculture however, he stated that the "uncertainty and anxiety" to set up sugar quotas, both as to total production and as caused by the act had come to a close and that cane growers to importation to the mainland, including a limitation on the were working "with regained confidence and healthy amount of refined sugar which was to constitute part of the quota. 1 The Sugar Act of 1937, which remained in effect optimism. 11 Reverting to the quota issue, Senator Munoz Marín testified in August 1941: "If we had 500,000 tons through 1947, followed a similar pattern. 2 The act of 1934 more of cane in Puerto Rico it would provide a livelihood provided that the quota was to be determined on the basis for a quarter of a million people, including families of of a three-year period between 1925 and 1933. That of 1937 workers. E. P. Wilson, Director of the Puerto Rican provided for a quota to constitute not quite 22 percent Trade Council, testified in June 1943 before the sub- of the total mainland consumption quota. The act of committee of the House Committee on Insular Affairs: August of 1947 (1948 Sugar Act), retains the latter quota system. In view of the sugar shortage occasioned by the Let Puerto Rico produce the maximum war, the President suspended the quota on September 11, 1939, amount of sugar it is capable of producing, instead effective through December 26 of that year, and again on April 13, 1942, the suspension remaining in effect through of 1,000,000 tons a year, as at present. If you let it produce 1,500,000 tons there will be about 1947. 75,000 more people employed 50,000 of them in Puerto Rican spokesmen for the sugar industry sugar, the rest in the related industries. (including political leaders who otherwise opposed the dominant place of sugar in the island's total economy) have Dudley Smith, representing the Association of Sugar Producers of Puerto Rico, testified in the same month: from the beginning opposed the quota system, pointing out the importance of sugar production to the general well-being "Puerto Rico has always felt that probably of the island. The Jones-Costigan Act appears particularly to have caused an initial shock because of anticipated it got a little bit of bad break in the establish- reverses which failed to materialize. The act was sharply ment of quotas, which was done according to law criticized by Filipo L. de Hostos and by Senators Barcelo by probably as fair a formula as could be set up. You cannot go back and change that now, but and Muñoz Marín4, and the Legislature's concurrent resolution of March 1935 stressed the detrimental effects it does put Puerto Rico in a position where it is of the act 5 The Governor reported in 1935 that the able to produce considerably more sugar than it is difficulties brought about by the act "have been seriously able to market under quota limitations. felt mainly because of its slow enforcement. "6 In 1936, Puerto Rico's basic quota was set on the basis of the Sugar Act of 1948 at 910,000 tons, of which a total of 126,033 tons was permitted to enter as refined sugar. The 1Act of May 9, 1934; 48 Stat. 670. quota was raised in 1949 to 1,119,331 tons, because of shortages in other producing areas.5 Puerto Rican spokesmen 2 Act of Sept. 1, 1937; 50 Stat. 903. 361 Stat. 922. 1 Ibid., 1936, p. 36. 4 Hearings on H. R. 1394, pp. 2-19 (especially 3-5, 17-19), 52-53. 2Hearings on the Nomination of Rexford G. Tugwell, p. 45. Spuerto Rican Legislature, S. Conc. R. No. 1, pp. 3-4. 3 Hearings Pursuant to H. Res. 159, p. 1135. 6Governor's Annual Report, 1935, p. 63. 4 Ibid., p. 509. 5 Puerto Rico (report to the United Nations), 1949, p. 18. RESTRICTED RESTRICTED

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    "ocrText": "RESTRICTED\nRESTRICTED\n-277-\n-278-\nJones-Costigan Act\", authorized the Secretary of Agriculture\nhowever, he stated that the \"uncertainty and anxiety\"\nto set up sugar quotas, both as to total production and as\ncaused by the act had come to a close and that cane growers\nto importation to the mainland, including a limitation on the\nwere working \"with regained confidence and healthy\namount of refined sugar which was to constitute part of the\nquota. 1 The Sugar Act of 1937, which remained in effect\noptimism. 11 Reverting to the quota issue, Senator Munoz\nMarín testified in August 1941: \"If we had 500,000 tons\nthrough 1947, followed a similar pattern. 2 The act of 1934\nmore of cane in Puerto Rico it would provide a livelihood\nprovided that the quota was to be determined on the basis\nfor a quarter of a million people, including families of\nof a three-year period between 1925 and 1933. That of 1937\nworkers. E. P. Wilson, Director of the Puerto Rican\nprovided for a quota to constitute not quite 22 percent\nTrade Council, testified in June 1943 before the sub-\nof the total mainland consumption quota. The act of\ncommittee of the House Committee on Insular Affairs:\nAugust of 1947 (1948 Sugar Act), retains the latter quota\nsystem. In view of the sugar shortage occasioned by the\nLet Puerto Rico produce the maximum\nwar, the President suspended the quota on September 11, 1939,\namount of sugar it is capable of producing, instead\neffective through December 26 of that year, and again on\nApril 13, 1942, the suspension remaining in effect through\nof 1,000,000 tons a year, as at present. If you let\nit produce 1,500,000 tons there will be about\n1947.\n75,000 more people employed\n50,000\nof\nthem\nin\nPuerto Rican spokesmen for the sugar industry\nsugar, the rest in the related industries.\n(including political leaders who otherwise opposed the\ndominant place of sugar in the island's total economy) have\nDudley Smith, representing the Association of Sugar\nProducers of Puerto Rico, testified in the same month:\nfrom the beginning opposed the quota system, pointing out\nthe importance of sugar production to the general well-being\n\"Puerto Rico has always felt that probably\nof the island. The Jones-Costigan Act appears particularly\nto have caused an initial shock because of anticipated\nit got a little bit of bad break in the establish-\nreverses which failed to materialize. The act was sharply\nment of quotas, which was done according to law\ncriticized by Filipo L. de Hostos and by Senators Barcelo\nby probably as fair a formula as could be set\nup.\nYou cannot go back and change that now, but\nand Muñoz Marín4, and the Legislature's concurrent\nresolution of March 1935 stressed the detrimental effects\nit does put Puerto Rico in a position where it is\nof the act 5 The Governor reported in 1935 that the\nable to produce considerably more sugar than it is\ndifficulties brought about by the act \"have been seriously\nable to market under quota limitations.\nfelt mainly because of its slow enforcement. \"6 In 1936,\nPuerto Rico's basic quota was set on the basis of\nthe Sugar Act of 1948 at 910,000 tons, of which a total of\n126,033 tons was permitted to enter as refined sugar. The\n1Act of May 9, 1934; 48 Stat. 670.\nquota was raised in 1949 to 1,119,331 tons, because of\nshortages in other producing areas.5 Puerto Rican spokesmen\n2 Act of Sept. 1, 1937; 50 Stat. 903.\n361 Stat. 922.\n1\nIbid., 1936, p. 36.\n4\nHearings\non H. R. 1394, pp. 2-19 (especially\n3-5, 17-19), 52-53.\n2Hearings\non the Nomination of Rexford G. Tugwell,\np.\n45.\nSpuerto Rican Legislature, S. Conc. R. No. 1, pp. 3-4.\n3 Hearings\nPursuant to H. Res. 159, p. 1135.\n6Governor's Annual Report, 1935, p. 63.\n4 Ibid., p. 509.\n5\nPuerto Rico (report to the United Nations), 1949, p. 18.\nRESTRICTED\nRESTRICTED"
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