Dee. 2
There was the distinct ex-Pectation. that by this time of day the Brussels sugar conference would have been able to arrive at some definite agreement concerning the quota from each of the great exporting countries of the world, but the latest telegrams on the subject indicate that nothing tangible can be hoped for until next month, From the point of view of the sugar industry: this is unfortunate, as the Brussels conference seemed to contain in it the elements of the industry's salvation, This conference constitutes the most important event in the history of sugar for many years past, especially so because it is the first occasion on which Java and Cuba producers have been able to arrive at an agreement for mutual measures for the: stabilization of prices. In spite of the continued depression under which this industry has been labouring for several years, Java, by reason of her strong financial position, low cost of production and. favourable geographical situation as supplier of Far Eastern market: has hitherto found it possible maintain an independent attitude towards the attempt= which have been made from time to time to put into execution practical methods of world production control. Conditions r2- cently, however, have reached a Point where desperate measures are seen to be imperative, as many producing countries ar2 feed with disaster unless som Walanee can be struck between Production and consumption, by] The reasons for the present situation are that great strides have been made in recent years in all departments of the sugar industry, in methods of planting, research and experimental work on the various types of cane, and in the processes of manufacture both of cane and beet. Most countries have continued to increase their' areas under cultivation, and worl production has "consequently shown an enormous increase in the past few years, whereas owing to adverse trade coxditions under which practically In|every country has been labouring, consumption has not increased—proportionately, might have been expected that: the low prices resulting from. over-production would have had a stimulating effect on consumption, but it-must be remembered that this economic law operates only so long as other commodities ave not standing at equall;- low levels. With purchasing power reduced to a minimum, there is no stimulating effect from low prices. It is in circumstances such as these that the conference has met Brussels under conditions more or less of secrecy in the hope of securing a real measure of control over production. The reports from day to day have been of such a varied natu that it is difficult to estimate chances of ultimate success, hi at any rate, it seems to be coi ne tain that asa result of an agre: ment reached at Amsterdun Java will restrict her production by 11.72 per cent. while that of Cuba will be cut down by 23.5 per cent, Probably this is dependent on a reduction by European producers to th extent of 20 per cent, but the telegrams are not altogether clear upon this point. What ix clear, however, is that among European producers there is so much disagreement that it la obviously going to be very difficult to arrive at a settlement. As already pointed out, should failure occur it may spell disaster to the industry.
A particular point of interest while these negotiations have been in progress is that a delegation from Cuba should have been visiting China to enquire into the prospects of a monopoly: of sugar imports by Cuba. No doubt it was despatched prior to the decision to hold the conference, but it is satisfactory 1 know that the Chinese Govern ment hie declined to give any monopoly, even with the Cuban industry offering the establishment of an important refinery industry here. As was pointed out by the Chinese Government in its reply, sugar constitutes a very important item of import, and an examination of the facts shows that the interests of consumers would not be benefited by the granting of such monopoly. In the first place it takes two and a half months for sugar' from Cuba to reach China as against twelve days from Java, so that in the matter of placing orders China would no longer be so well situated as she is at present. Further, all sugars from Cuba would have to be refined, as the raw Cuban article is unpopular here, whic!: means that the consumer woul! have no option but to buy a high grade article at a high pri instead of, as at present, be able to buy the lower gra such as molasses, which are very popular with the Chiness. Another popular sugar, Java White, would also be excluded from the market, In the cumstances the Chinese Gove: ment has made a wise decision in declining to give a monopoly. This, however, must be considered as a side issue to the work of the conference. The results of a successful termination to the conference were already being discounted several
Text read from the printed page and cleaned; old type leaves the occasional error.