London, June 15, Referring to the international Sugar Agreement of 1937 in the House of Commons yesterday, Mr, Malcolm MacDonald, "Secretary for the Colonies, stated that the calcula-_ tion "on which the agreement was based "anticipated a normal demand for sugar in the Far East of 560,000 fons a year,"
As a result of the Sino-Japanese hostilities, Mr. Macdonald continued, it was doubtful whether the Far East was absorbing 300,000 thousand tons a year.
The cuts in the quotas, made as a result of a recent meeting of the International Sugar Council, were proving inadequate to. meet -he situation, Mr. MacDonald declared, Delegates were consulting their res: pective governments, and the Council was to meet again early in July.
Mr. MacDonald hoped the Council, by further voluntary reductions in supplies, would re-establish the equilibrium between supply and demand, so that prices for producers generally could rise to a reasonable and proper level—Reuter.
Text read from the printed page and cleaned; old type leaves the occasional error.