The "most likely longer-term solution" to U.S. sugar surpluses could involve converting the sugar to ethanol in the United States and Mexico, a U.S. sugar industry group said yesterday. "The U.S. sugar industry recognises that significant change must occur within the industry, or with the policy, or both, to sustain U.S. sugar policy in the long run - 2003 and beyond," said Jack Roney, director of policy analysis for the American Sugar Alliance, representing growers, processors and refiners.