COMMISSION OF THE EUROPEAN COMMUNITIES 
C0M(94) 426 final 
Brussels, 18.10.1994 
94/0237 (ACC) 
Proposal for a 
COUNCIL DECISION 
on the conclusion of the Agreements in the form of an exchange of letters 
between the European Community and, on the one hand, Barbados, Belize, 
the Republic of the Congo, Fiji, the Cooperative Republic of Guyana, 
the Republic of the Ivory Coast, Jamaica, the Republic of Kenya, 
the Republic of Madagascar, the Republic of Malawi, Mauritius, 
the Republic of Surinam, St. Christopher and Nevis, 
the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad 
and Tobago, the Republic of Uganda, the Republic of Zimbabwe and, 
on the other hand, the Republic of India on the guaranteed prices 
for cane sugar for the 1993/94 delivery period 
(presented by the Commission) 
EXPLANATORY MEMORANDUM 
1. Protocol No 8 on ACP sugar annexed to the Fourth ACP-EEC Convention and 
the agreement on sugar between the European Community and the Republic 
of India provide for a Community undertaking to purchase and import at 
guaranteed prices cane sugar which the exporting countries concerned 
cannot market in the Community at prices equivalent to or higher than 
the guaranteed prices. 
2. For the 1993/94 delivery period, the Commission has negotiated 
guaranteed prices with the ACP States and the Republic of India pursuant 
to Articles 5(4) of Protocol No 8 on ACP sugar and the agreement with 
India on cane sugar as well as in conformity with the guidelines for 
negotiations given by the Council on 19.7.1993. 
3. The Commission therefore proposes that the Council adopt the proposal 
for a decision on the conclusion of the agreements in the form of an 
exchange of letters as set out in Annex 1. 
4. Financial impact: These proposals have no financial impact other than 
that taken into account within the framework of the 1993 budget and the 
1994 preliminary draft budget (see financial statement accompanying the 
recommendation for a Council decision authorizing the Commission to 
negotiate the guaranteed prices for 1993/94). 
- 2 -
Proposal for a 
COUNCIL DECISION 
on the conclusion of the Agreements in the form of an exchange of letters 
between the European Community and Barbados, Belize, the Republic of the 
Congo, Fiji, the Cooperative Republic of Guyana, the Republic of the Ivory 
coast, Jamaica, the Republic of Kenya, the Republic of Madagascar, the 
Republic of Malawi, Mauritius, the Republic of Surinam, St. Christopher and 
Nevis, the Kingdom of Swaziland, the united Republic of Tanzania, Trinidad 
and Tobago, the Republic of Uganda, the Republic of Zimbabwe on the 
guaranteed prices for cane sugar for the 1993/94 delivery period 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in 
particular Article 113 thereof, 
Having regard to the proposal from the Commission, 
Whereas implementation of Protocol 8 on ACP Sugar annexed to the Fourth ACP-
EEC Convention(*) and of the Agreement between the European community and 
the Republic of India on cane sugar<2) is carried out, in accordance with 
Article 1(2) of each, within the framework of the management of the common 
organization of the sugar market, 
Whereas it is appropriate to approve the Agreements in the form of exchange 
of letters between the European Community and, on the one hand, the states 
referred to in the Protocol and, on the other hand, the Republic of India on 
the guaranteed prices for cane sugar for the 1993/94 delivery period, 
HAS DECIDED AS FOLLOWS: 
(1) OJ No L 299, 17.8.1991, p. 1. 
(2) OJ No L 190, 22.7.1975, p. 35. - 3 -
Article 1 
The Agreements in the form of exchange of letters between the European 
Community and, on the one hand, Barbados, Belize, the Republic of the Congo, 
Fiji, the Cooperative Republic of Guyana, the Republic of the Ivory Coast, 
Jamaica, the Republic of Kenya, the Republic of Madagascar, the Republic of 
Malawi, Mauritius, the Republic of Surinam, St. Christopher and Nevis, the 
Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, 
the Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the 
Republic of India on the guaranteed prices for cane sugar for the 1993/94 
delivery period are hereby approved on behalf of the Community. 
The text of the Agreement is attached to this Decision. 
Article 2 
The President of the Council is hereby authorized to designate the person 
empowered to sign the Agreements referred to in Article 1 in order to bind 
the community. 
Article 3 
This Decision will be published in the Official Journal of the European 
Communities. 
Done at Brussels, For the Council 
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Text No I 
AGREEMENT 
in the form of exchange of letters between the European community and, on 
the one hand, Barbados, Belize, the Republic of the Congo, Fiji, the 
cooperative Republic of Guyana, the Republic of the Ivory coast, Jamaica, 
the Republic of Kenya, the Republic of Madagascar, the Republic of Malawi, 
Mauritius, the Republic of Surinam, St. Christopher and Nevis, the Kingdom 
of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the 
Republic of Uganda, the Republic of Zimbabwe and, on the other hand, the 
Republic of India on the guaranteed prices for cane sugar for the 1993/94 
delivery period. 
Letter No 1 
1. The representatives of the ACP states referred to in Protocol & on ACP 
sugar annexed to the Fourth ACP-EEC Convention of Lomé and of the 
commission on behalf of the European community, have agreed, pursuant to 
the provisions of the said Protocol, on the following: 
For the delivery period 1 July 1993 to 30 June 1994, the guaranteed 
prices referred to in Article 5(4) of the Protocol shall, for the 
purpose of intervention within the terms of Article 6 of the Protocol, 
be: ? 
(a) for raw sugar ECU 43,37 per 100 kilograms; 
(b) for white sugar ECU 53,54 per 100 kilograms. 
2. These prices shall refer to sugar of standard quality as defined in 
community legislation, unpacked, cif, free out of 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. 
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I should be obliged if you would acknowledge receipt of this letter and 
confirm that this letter and your reply constitute an Agreement between teh 
Governments of the abovementioned ACP states and the Community. 
Please accept, Sir, the assurance of my highest consideration. 
For the Council 
of the European Union 
Letter No 2 
sir, 
I have the honour to acknowledge receipt of your letter of today which reads 
as follows: 
I have the honour to confirm the agreement of the Governments of the ACP 
states referred to in this letter with the foregoing. 
Please accept, Sir, the assurance of my highest consideration. 
For the Governments 
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Text No II 
AGREEMENT 
in the form of an exchange of letters between the European Community and the 
Republic of India on the guaranteed prices for cane sugar for.1993/94 
Letter No 1 
Brussels, 
Sir, 
1. The Representatives of India and of the Commission, on behalf of the 
European Community, have agreed within the framework of the negotiations 
provided for in Article 5(4) of the Agreement between the European 
Community and the Republic of India on cane sugar, on the following: 
for the period 1 July 1993 to 30 June 1994 the guaranteed prices 
referred to in Article 5(4) of the Agreement shall, for the purpose 
of intervention within the terms of Article 6 of the Agreement, be: 
(a) for raw sugar ECU 43,37 per 100 kilograms; 
(b) for white sugar ECU 53,54 per 100 kilograms. 
These prices shall refer to sugar of standard quality as defined in 
Community legislation, unpacked, cif, free out of 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. 
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. 
Yours faithfully, 
For the Council of the 
European Union 
- 7•••-
Letter No 2 
Sir, 
I have the honour to acknowledge receipt of your letter of today which reads 
as^ follows : 
I have the honour to confirm the agreement of my Government with the 
foregoing. 
Please accept, Sir, the assurance of my highest consideration. 
For the Government of 
the Republic of India 
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FINANCIAL STATEMENT 
DATE: 
1. BUDGET HEADING: 11 APPROPRIATIONS: ECU 2.088 million 
2. TITLE: 
Recommendation for a Decision of the Council to authorize the Commission to negotiate the guaranteed 
prices applicable in the 1993/94 delivery period to cane sugar originating in the ACP States referred to 
in Protocol 8 annexed to the Fourth EEC-ACP Convention and in India. 
3. LEGAL BASIS: Article 113 of the Treaty 
4. AIMS OF PROJECT: 
To guarantee cif prices for the ACP States and the Republic of India for their deliveries of white sugar 
and raw cane sugar to the Community which are comparable with the prices guaranteed to sugar 
producers in the Community for the 1993/94 delivery period. 
FINANCIAL IMPLICATIONS 
5.0 EXPENDITURE 
- CHARGED TO THE EC BUDGET 
- (REFUNDS/INTERVENTION) 
- NATIONAL ADMINISTRATION 
- OTHER 
5.1 REVENUE 
5.0.1 ESTIMATED EXPENDITURE 
5.1.1 ESTIMATED REVENUE Period of 12 months 
ECU million 
670 Current Financial Year 
1993 
ECU mi 11 ion . Following Financial Year 
1994 
ECU mi 11 ion 
617 
1995 
53 1996 1997 1998 
5.2 METHOD OF CALCULATION: 
1,3 million t x ECU 420/t <refunds) x 1,207 (DT) = ECU 659 million (B) 
1,3 million t x ECU 5,8/t (refining aid) x 1,207 (DT) = ECU 9,1 million (B) 
1,1 million t x ECU 4,5/t (aid to UK) x 25% x 1,207 (DT) = ECU 1,5 million (B) 
ECU 669,6 mi 11ion (B) 
In 1994: ECU 659 million x 0,92 (export coefficient) + (9.1 + 1,5) Mio ECU = ECU 616,9 million (B) 
In 1996: ECU 659 million x 0,08 (export coefficient) = ECU 52,7 million (B) 
6.0 CAN THE PROJECT BE FINANCED FROM APPROPRIATIONS ENTERED IN THE RELEVANT CHAPTER OF THE CURRENT BUDGET? 
YES 
6.1 CAN THE PROJECT BE FINANCED BY TRANSFER BETUEEN CHAPTERS OF THE CURRENT BUDGET? XXXXXX 
6.2 IS A SUPPLEMENTARY BUDGET NECESSARY? 
NO 
6.3 WILL FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 
(1994) YES 
OBSERVATIONS: 
This is an implementing regulation under Protocol 8 annexed to the Fourth Lomé Convention. 
Accordingly, it has no new financial impact compared with the previous situation. 
The cost of re-exporting equivalent quantities of Community sugar and of aid for the refining of raw sugar, 
estimated at ECU 670 million, will be taken into account in the 1994 preliminary draft budget. 
Furthermore, the lowering of the level of the refining aid from ECU 15.8/t to ECU 5.8/t results in a saving 
of 1.3 million tonnes x (15.8 - 5.8) ECU/t x 1,207 (DR) = ECU 15,7 million (B), the cost first estimated 
in the 1994 PDB. 3 
ISSNQ254-1475 
COM(94) 426 final 
EN DOCUMENTS 
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Catalogue number : CB-CO-94-455-EN-C 
ISBN 92-77-81093-9 
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