Rationalising Sugar Next Monday, under the auspices of the League
of Nations and the chairmanship of Dr. Colijn, Prime Minister of Holland, the representatives of countries producing some 90 per cent. of the world's sugar will meet in conference in London. The problem before the conference is to reconcile the claims of cane and beet sugar producers in a world market which since the War has been hopelessly glutted. The failure of the Chadbourne Restriction Plan, which came into opera- tion in 1931, is not of good augury. But since 1935, when the plan terminated, conditions have changed sufficiently to give the conference a fair prospect of success. Consumption has risen to record heights and since 1933 has exceeded current production ; some of the largest beet sugar producers, especially Germany, have ceased to be exporters. The greatest obstacle to success is Java, whose demand for large export quotas to compensate her for the loss of some of her best markets may be impossible to reconcile with the concern of the greatest sugar-consuming countries for their own artificially stimulated beet sugar industries. The fundamental difficulty remains that, owing to a network of quotas, tariffs, subsidies, to protect domestic industries, the free market for sugar covers only to per cent. of the world consumption, so that very little competition is necessary to depress sugar prices. It would be gratifying if the new plan contained proposals for reducing State assistance after any increases in price.
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