6.7.77 OfficialJournaloftheEuropeanCommunities NoL168/45
AGREEMENT
intheformofanexchangeoflettersbetweentheEuropeanEconomicCommu­
nityandtheRepublicofIndiaontheguaranteedpricesforcanesugarfor
1977/78
LetterNo1
Brussels
Sir,
1.InthenegotiationsreferredtoinArticle5(4)oftheAgreementbetweentheEuropean
EconomicCommunityandtheRepublicofIndiaoncanesugartheCommission ,on
behalfoftheCommunity ,andtheRepublicofIndiaacknowledged thejointobliga­
tionsandresponsibilities derivingfromtheAgreementandreaffirmedtheirdetermina­
tionfullytoimplementtheprovisionsoftheAgreement .
Followingtheconclusionofthesaidnegotiationsthetwopartieshaveagreedas
follows:
Fortheperiod1May1977to30June1978theguaranteedpricesreferredtoinArticle
5(4)oftheAgreementshallbe:
(a)forrawsugar,27-25unitsofaccountper100kilograms ;
(b)forwhitesugar,33-83unitsofaccountper100kilograms .
ThesepricesshallrefertosugarofstandardqualityasdefinedinCommunityrules,
unpacked,andcifEuropeanportsoftheCommunity .
2.HavingregardtothechangeinthedefinitionoftheCommunity'sinterventionprices
andotherrelevantfactors,theCommunityexpectsthattheguaranteedpriceforraw
sugaroriginatinginIndiaandtheadoptionofthespecialself-balancing storagelevy
systemforpreferentialsugarwillenableIndiatosecureontheCommunitymarket
duringthe1977/78deliveryperiodapriceofnotlessthat28-20unitsofaccountper
100kilograms .
3.InrespectofwhitesugaroriginatinginIndiatheCommunityexpectsthatthe
guaranteedpricewillresultinamarketpriceof35-60unitsofaccountper100kilo­
grams.
ItaketheopportunitytoinformyouthattheCommunityhasjustadoptedamending
legislationinorderthataspecialself-balancing storagelevysystemshallapplyto
importedpreferentialsugarwitheffectfrom1July1977.
Ishouldbeobligedifyoiiwouldacknowledgereceiptofthisletterandconfirmthatthis
letterandyourreplyconstituteanAgreementbetweenyourGovernmentandtheCommu­
nity.
Pleaseaccept,Sir,theassuranceofmyhighestconsideration .
FortheCouncil
oftheEuropeanCommunities

NoL168/46 OfficialJournaloftheEuropeanCommunities 6.7.77
LetterNo2
Brussels,
Sir,
Ihavethehonourtoacknowledgereceiptofyourletteroftodaywhichreadsasfollows:
'1.InthenegotiationsreferredtoinArticle5(4)oftheAgreementbetweentheEuro­
peanEconomicCommunityandtheRepublicofIndiaoncanesugartheCommis­
sion,onbehalfoftheCommunity ,andtheRepublicofIndiaacknowledged the
jointobligationsandresponsibilities derivingfromtheAgreementandreaffirmed
theirdetermination fullytoimplementtheprovisionsoftheAgreement .
Followingtheconclusionofthesaidnegotiationsthetwopartieshaveagreedas
follows:
Fortheperiod1May1977to30June1978theguaranteedpricesreferredtoin
Article5(4)oftheAgreementshallbe:
(a)forrawsugar,27-25unitsofaccountper100kilograms ;
(b)forwhitesugar,33-83unitsofaccouotper100kilograms .
ThesepricesshallrefertosugarofstandardqualityasdefinedinCommunity
rules,unpacked,andcifEuropeanportsoftheCommunity .
2.HavingregardtothechangeinthedefinitionoftheCommunity'sintervention
pricesandotherrelevantfactors,theCommunityexpectsthattheguaranteedprice
forrawsugaroriginatinginIndia,andtheadoptionofthespecialself-balancing
storagelevysystemforpreferentialsugarwillenableIndiatosecureonthe
Communitymarketduringthe1977/78deliveryperiodapriceofnotlessthat
28-20unitsofaccountper100kilograms .
3.InrespectofwhitesugaroriginatinginIndiatheCommunityexpectsthatthe
guaranteedpricewillresultinamarketpriceof35-60unitsofaccountper100
kilograms .
ItaketheopportunitytoinformyouthattheCommunityhasjustadoptedamending
legislationinorderthataspecialself-balancing storagelevysystemshallapplyto
importedpreferentialsugarwitheffectfrom1July1977.
Ishouldbeobligedifyouwouldacknowledgereceiptofthisletterandconfirmthat
thisletterandyourreplyconstituteanAgreementbetweenyourGovernmentandthe
Community.'
IhavethehonourtoconfirmtheagreementofmyGovernmentwiththeforegoing.
Pleaseaccept,Sir,theassuranceofmyhighestconsideration .
FortheGovernment
oftheRepublicofIndia