31.12.86 OfficialJournaloftheEuropeanCommunities NoL387/209
AGREEMENT
intheformofanExchangeofLettersbetweentheEuropeanEconomicCommunityandtheRepublic
ofIndiaontheguaranteedpricesforcanesugarforthe1985/86deliveryperiod
LetterNo1
Brussels,
Sir,
1.Therepresentatives oftheRepublicofIndiaandoftheCommission ,actingonbehalfofthe
EuropeanEconomicCommunity ,haveagreed,pursuanttotheprovisionsoftheAgreementon
canesugarbetweentheEuropeanEconomicCommunityandtheRepublicofIndia,tosubmitto
theircompetentauthoritiesforapproval,tobethesubjectofanExchangeofLettersbetweenthe
RepublicofIndiaandtheCommunity ,thefollowing.
2.Fortheperiod1July1985to30June1986theguaranteedpricesreferredtoinArticle5(4)ofthe
Agreementshall,forthepurposeofinterventionwithinthetermsofArticle6thereof,be:
(a)forrawsugar:44,85ECUper100kilogramsfrom1July1985to31March1986,
44,92ECUper100kilogramsfrom1April1986to30June1986;
(b)forwhitesugar:55,39ECUper100kilograms .
3.Theseprices,whichrepresentincreasesof1,15%and1,31%respectivelyoverthoseapplicable
fortheprecedingdeliveryperiod,shallrefertosugarofstandardqualityasdefinedinCommunity
legislation,unpacked,ciffreeoutEuropeanportsoftheCommunity .Theintroductionofthese
pricesinnowayprejudicestherespectivepositionsoftheContractingPartiesinrespectofthe
principlesappertainingtothedetermination oftheguaranteedprices.
4.Althoughretroactivityisnotprovidedforinrespectofthe1985/86prices,itisagreedthatthis
year'sdecisiondoesnotprejudicethepositionoftheRepublicofIndiainrelationtoretroactivityin
anyfuturenegotiationinaccordancewithArticle4(3)oftheAgreement .
5.Itwasnotedthat,intheviewoftheRepublicofIndia,theproblemofoceanfreightcostsremained
anoutstandingandpressingmatterwhichrequiredimmediateconsideration andresolution .
Further,inthecontextofparagraph3,theconcernoftheRepublicofIndiawithregardtothe
methodusedinarrivingatthesepriceswasnoted.
Ishouldbeobligedifyouwouldacknowledgereceiptofthisletterandconfirmthatthisletterandyour
replyconstituteanAgreementbetweenyourGovernmentandtheCommunity .
Pleaseaccept,Sir,theassuranceofmyhighestconsideration .
Onbehalfofthe
CounciloftheEuropeanCommunities

NoL387/210 OfficialJournaloftheEuropeanCommunities 31.12.86
LetterNo2
Brussels,
Sir,
Ihavethehonourtoacknowledgereceiptofyourletteroftoday'sdatewhichreadsasfollows:
'1.Therepresentatives oftheRepublicofIndiaandoftheCommission ,actingonbehalfofthe
EuropeanEconomicCommunity,haveagreed,pursuanttotheprovisionsoftheAgreement
oncanesugarbetweentheEuropeanEconomicCommunityandtheRepublicofIndia,to
submittotheircompetentauthoritiesforapproval,tobethesubjectofanExchangeofLetters
betweentheRepublicofIndiaandtheCommunity ,thefollowing.
2.Fortheperiod1July1985to30June1986theguaranteedpricesreferredtoinArticle5(4)of
theAgreementshall,forthepurposeofinterventionwithinthetermsofArticle6thereof,
be:
(a)forrawsugar:44,85ECUper100kilogramsfrom1July1985to31March
1986,
44,92ECUper100kilogramsfrom1April1986to30June
1986;
(b)forwhitesugar:55,39ECUper100kilograms .
3.Theseprices,whichrepresentincreasesof1,15%and1,31%respectivelyoverthose
applicablefortheprecedingdeliveryperiod,shallrefertosugarofstandardqualityasdefined
inCommunitylegislation,unpacked,ciffreeoutEuropeanportsoftheCommunity .The
introductionofthesepricesinnovs^ayprejudicestherespectivepositionsoftheContracting
Partiesinrespectoftheprinciplesappertainingtothedetermination oftheguaranteed
prices.
4.Althoughretroactivityisnotprovidedforinrespectofthe1985/86prices,itisagreedthat
thisyear'sdecisiondoesnotprejudicethepositionoftheRepublicofIndiainrelationto
retroactivityinanyfuturenegotiationinaccordancewithArticle4(3)oftheAgreement .
5.Itwasnotedthat,intheviewoftheRepublicofIndia,theproblemofoceanfreightcosts
remainedanoutstandingandpressingmatterwhichrequiredimmediateconsiderationand
resolution .Further,inthecontextofparagraph3,theconcernoftheRepublicofIndiawith
regardtothemethodusedinarrivingatthesepriceswasnoted.
Ishouldbeobligedifyouwouldacknowledgereceiptofthisletterandconfirmthatthisletterand
yourreplyconstituteanAgreementbetweenyourGovernmentandtheCommunity.'.
IhavethehonourtoconfirmthatmyGovernmentisinagreementwiththeforegoing.
Pleaseaccept,Sir,theassuranceofmyhighestconsideration .
FortheGovernmentof
theRepublicofIndia