Page:United States Statutes at Large Volume 59 Part 2.djvu/268

 59 STAT.] MIJLTILATREB AIL-SUGAR- May 6, 1937 July 22, 1942; Aug. 31, 1944 The French Government has given notice that during the above- mentioned quota year the reserve quota may be reduced by 22,500 tons. ARTICLE 25. Neither the basic quotas nor the export quotas for a particular year nor any additional quotas may be ceded by one Contracting Government to another. Chapter V.- Stocks. ARTICLE 26. (a) While the Contracting Governments fully realise that due regard must be had to the necessity of maintaining adequate reserve supplies to meet unexpected demands, they agree that it is undesirable that excessive stocks of sugar which would weigh on the market should be accumulated in their respective countries. (b) Those Contracting Governments to which export quotas have been or may be allotted under the present Agreement, undertake so to regulate their production that the stocks in their respective coun- tries shall not exceed, for each country, on a fixed date in each year to be agreed with the Council, an amount equal to 25 per cent. of its annual production. (c) Nevertheless, the Council may if it considers that such action is justified by special circumstances allot to any country a stock in excess of 25 per cent. of its production. (d) On account of its special situation in connection with exports to the United States and the requirements of Contract No. 4 on the New York Sugar Exchange, the Republic of Cuba may have at the end of each calendar year as stocks (1) for the United States an amount not to exceed 30 per cent. of its export quota to that country, (2) for the free market, an amount not to exceed 300,000 metric tons, provided that a system of control is maintained by the Government of the Republic of Cuba, by means of identity certificates or otherwise, which ensures that such stocks are used for those purposes. (e) Having regard to the special conditions of production in the Netherlands East Indies, that territory shall be permitted to have a stock not exceeding 500,000 tons on the 1st April in each year. (J) Hungary shall be permitted to have a stock of 30 per cent. of its annual production. ARTICLE 27. Those Contracting Governments to which free market export quotas have been allotted agree in respect of their cane producing territories to regulate sugar production in those territories, unless prevented from doing so by drought, flood or other adverse conditions, so that stocks shall equal, on a fixed date in each year to be agreed with the Council, an amount not less than 10 per cent. of their respective export quotas for such year, provided nothing in this Article shall be construed as requiring any country to produce in excess of its basic export quota specified in Article 19 during either of the years 1937-38 or 1938-39. At""e p- 933

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