27.7.78 OfficialJournaloftheEuropeanCommunities NoL203/5
AGREEMENT
intheformofanexchangeoflettersbetweentheEuropeanEconomicCommu­
nityandBarbados,thePeople'sRepublicoftheCongo,Fiji,theCooperative
RepublicofGuyana,Jamaica,theRepublicofKenya,theDemocraticRepublic
ofMadagascar ,theRepublicofMalawi,Mauritius ,theRepublicofSurinam,the
KingdomofSwaziland,theUnitedRepublicofTanzania,TrinidadandTobago
andtheRepublicofUganda,ontheguaranteedpricesforcanesugarfor1978/79
LetterNo1
Brussels,
Sir,
1.Therepresentatives oftheACPStatesreferredtoinProtocol3onACPsugarannexed
totheACP-EECConventionofLomé,andoftheCommission ,onbehalfoftheEuro­
peanEconomicCommunity ,have,withintheframeworkofthenegotiationsprovided
forinArticle5(4)ofthesaidProtocol,agreedthefollowing :
—Fortheperiod1July1978to30June1979,theguaranteedpricesreferredtoin
Article5(4)oftheProtocolshall,forthepurposesofinterventionwithintheterms
ofArticle6oftheProtocol,be
(a)forrawsugar,27.81unitsofaccountper100kilograms ;
(b)forwhitesugar,34.49unitsofaccountper100kilograms .
Theseprices,whichrepresentanincreaseofabout2%overthoseoflastyear,shall
refertosugarofstandardqualityasdefinedinCommunitylegislation,unpacked,cif
EuropeanportsoftheCommunity .
2.Havingregardtomarketconditionsgenerally,andtootherrelevantfactors,itis
expectedthattheaboveguaranteedpricesforACPsugarwillenabletheACPStates
concernedtosecureonCommunitymarkets,duringthedeliveryperiod1978/79,
pricesinexcessofthemarketpricesforthedeliveryperiod1977/78,asestimatedat
thetimeoflastyear'snegotiations .
3.Itisagreedthatthedecisionnottoprovideforretroactivityinrespectofthe1978/79
pricesdoesnotprejudicethepositionoftheACPStatesinrelationtoretroactivityin
anyfuturenegotiationsinaccordancewithArticle4(3)ofProtocol3totheConven­
tionofLomé.
4.TheACPStatespointoutthat,aslongastheabovepricesrefertosugarofferedona
cifEuropeanportbasis,theywillhavetocarrythefullburdenoffreightcharges.Asa
result,theirex-factorypriceshavebeensubstantiallylowerthantheex-factorypricesof
Europeanbeetproducers.TheACPStatesthereforerequestthattheCommunity
considerappropriatewaysandmeansofprovidingsomecompensation forthese
charges.TheCommunitytakesnoteofthisrequest.
Ishouldbeobligedifyouwouldacknowledgereceiptofthisletterandconfirmthatthis
letterandyourreplyconstituteanAgreementbetweentheGovernments oftheACP
StatesreferredtointhesaidProtocolandtheCommunity .
Pleaseaccept,Sir,theassuranceofmyhighestconsideration .
FortheCouncil
oftheEuropeanCommunities

NoL203/6 OfficialJournaloftheEuropeanCommunities 27.7.78
LetterNo2
Brussels,
Sir,
Ihavethehonourtoacknowledgereceiptofyourletteroftodaywhichreadsasfollows:
'1.Therepresentatives oftheACPStatesreferredtoinProtocol3onACPsugar
annexedtotheACP-EECConventionofLomé,andoftheCommission ,onbehalf
oftheEuropeanEconomicCommunity ,have,withintheframeworkofthenegotia­
tionsprovidedforinArticle5(4)ofthesaidProtocol,agreedthefollowing :
—Fortheperiod1July1978to30June1979,theguaranteedpricesreferredto
inArticle5(4)oftheProtocolshall,forthepurposesofinterventionwithin
thetermsofArticle6oftheProtocol,be
(a)forrawsugar,27-81unitsofaccountper100kilograms;
(b)forwhitesugar,34.49unitsofaccountper100kilograms .
Theseprices,whichrepresentanincreaseofabout2%overthoseoflastyear,
shallrefertosugarofstandardqualityasdefinedinCommunitylegislation,
unpacked,cifEuropeanportsoftheCommunity .
2.Havingregardtomarketconditionsgenerally,andtootherrelevantfactors,itis
expectedthattheaboveguaranteedpricesforACPsugarwillenabletheACP
StatesconcernedtosecureonCommunitymarkets,duringthedeliveryperiod
1978/79,pricesinexcessofthemarketpricesforthedeliveryperiod1977/78,as
estimatedatthetimeoflastyear'snegotiations .
3.Itisagreedthatthedecisionnottoprovideforretroactivityinrespectofthe
1978/79pricesdoesnotprejudicethepositionoftheACPStatesinrelationto
retroactivityinanyfuturenegotiationsinaccordancewithArticle4(3)ofProtocol
3totheConvention ofLomé.
4.TheACPStatespointoutthat,aslongastheabovepricesrefertosugarofferedon
acifEuropeanportbasis,theywillhavetocarrythefullburdenoffreightcharges.
Asaresult,theirex-factorypriceshavebeensubstantiallylowerthantheex-factory
pricesofEuropeanbeetproducers.TheACPStatesthereforerequestthatthe
Communityconsiderappropriatewaysandmeansofprovidingsomecompensa­
tionforthesecharges.TheCommunitytakesnoteofthisrequest.
Ishouldbeobligedifyouwouldacknowledgereceiptofthisletterandconfirmthat
thisletterandyourreplyconstituteanAgreementbetweentheGovernments ofthe
ACPStatesreferredtointhesaidProtocolandtheCommunity.'
IhavethehonourtoconfirmtheagreementoftheACPStatesreferredtointhesaid
Protocolwiththeforegoing.
Pleaseaccept,Sir,theassuranceofmyhighestconsideration .
FortheGovernments
oftheACPStates