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AGREEMENT

in the form of an Exchange of Letters between the European Economic Community and the Republic of India on the guaranteed prices for cane sugar for the 1987/1988 delivery period

Letter No 1

Brussels,

Sir,

The representatives of the Republic of India and of the Commission, on behalf of the European Community, have agreed, pursuant to the provisions of the Agreement on cane sugar between the European Economic Community and the Republic of India, to submit to their competent authorities for approval, to be the subject of an Exchange of Letters between the Republic of India and the Community, the following.

For the period 1 July 1987 to 30 June 1988 the guaranteed prices referred to in Article 5 (4) of the Agreement shall, for the purpose of intervention within the terms of Article 6 thereof, be:

(a) for raw sugar: ECU 44,92 per 100 kilograms;

(b) for white sugar: ECU 55,39 per 100 kilograms.

These prices represent no increase over those applicable for the proceeding delivery period and shall refer to sugar of standard quality as defined in Community legislation, unpacked, cif free out European ports of the Community. The introduction of these prices in no way prejudices the respective positions of the Contracting Parties in respect of the principles appertaining to the determination of the guaranteed prices.

Although retroactivity is not provided for in respect of the 1987/1988 prices, it is agreed that this year's decision does not prejudice the position of the Republic of India in relation to retroactivity in any future negotiation in accordance with Article 4 (3) of the Agreement.

In the context of the Agreement, it was noted that India considers that measures should be sought for improving its position and solving the problem of ocean freight costs, which remained an outstanding and pressing matter as from the current compaign year. It was further noted that the Commission undertook to examine and give due consideration to any proposals that the Indian authorities may put forward in this regard.

I should be obliged if you would acknowledge receipt of this letter and confirm that this letter and your reply constitute an Agreement between your Government and the Community.

Please accept, Sir, the assurance of my highest consideration.

On behalf of the

Council of the European Communities

Letter No 2

Brussels,

Sir,

I have the honour to acknowledge receipt of your letter of today's date which reads as follows:

'The representatives of the Republic of India and of the Commission, on behalf of the European Community, have agreed, pursuant to the provisions of the Agreement on cane sugar between the European Economic Community and the Republic of India, to submit to their competent authorities for approval, to be the subject of an Exchange of Letters between the Republic of India and the Community, the following.

For the period 1 July 1987 to 30 June 1988 the guaranteed prices referred to in Article 5 (4) of the Agreement shall, for the purpose of intervention within the terms of Article 6 thereof, be:

(a) for raw sugar: ECU 44,92 per 100 kilograms;

(b) for white sugar: ECU 55,39 per 100 kilograms.

These prices represent no increase over those applicable for the proceeding delivery period and shall refer to sugar of standard quality as defined in Community legislation, unpacked, cif free out European ports of the Community. The introduction of these prices in no way prejudices the respective positions of the Contracting Parties in respect of the principles appertaining to the determination of the guaranteed prices.

Although retroactivity is not provided for in respect of the 1987/1988 prices, it is agreed that this year's decision does not prejudice the position of the Republic of India in relation to retroactivity in any future negotiation in accordance with Article 4 (3) of the Agreement.

In the context of the Agreement, it was noted that India considers that measures should be sought for improving its position and solving the problem of ocean freight costs, which remained an outstanding and pressing matter as from the current compaign year. It was further noted that the Commission undertook to examine and give due consideration to any proposals that the Indian authorities may put forward in this regard.

I should be obliged if you would acknowledge receipt of this letter and confirm that this letter and your reply constitute an Agreement between your Government and the Community.'

I have the honour to confirm that my Government is in Agreement with the foregoing.

Please accept, Sir, the assurance of my highest consideration.

For the Government of the

Republic of India