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COM(74)1794
Vol.1974/0284

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(74)1794 final
Brussels .28October 1974
Commission Communication "tothe Council
relating toarrangements to "beestablished forsugar imports
from thedeveloping countries referred toinProtocol No22
tothe Act ofAccession and the countries and territories referred
toinArticle 118 ofthis Act and from India
Recommendation for aDecision ofthe Council
andoftherepresentatives oftheGovernments oftheMember
States ,meeting intheCouncil ,onsupplementing thedirectives
forthenegotiations with theACPStates .
Recommendation for aDecision ofthe Council
authorising theopening ofnegotiations with India
Commission Communication
ontheconclusions reached intheexploratory talks
with the sugar-exporting ACP States
(September-October 1974 )
(Submitted totheCouncil bytheCommission )
COM(74 )1794 final

COMMISSION COMMUNICATION TOTHECOUNCILRELATING TOARRANGEMENTS
TOBEESTABLISHED FORSUGARIMPORTSFROMTHEDEVELOPING COUNTRIES
REFERRED TOINPROTOCOL N®22TOTHEACTOFACCESSION ANDTHE
COUNTRIES ANDTERRITORIES REFERREDTOINARTICLE118OFTHISACT
ANDFROMINDIA.
AttheMinisterial ConferenceheldinKingstonon25and.26July1974,
inwhichtherepresentatives of44African,CaribbeanandPacific
countriesandoftheCommunitytookpart,itwasdecided,withregard
tosugar,that"theCommissionwillimmediately begintalkswiththe
relevantproducercountriesonthevariousproducts,particularly sugar
which,itwasacknowledged ,hasalwaysbeenaproblemofparticular
importance".Exploratorytalkshavebeenheldsincethenwiththecountries
concerned.Theresultsofthesetalksaresetoutmtheattacheddocument.
u
AttheCouncilmeetingof21October1974aconsensusofopinionarosem
favourofrecommendations foradirectivefornegociations bain^rsubmittedas
aspossibletothePermanentRepresentatives committee.
Thereasonsforsuchurgencyare:
(i)theimminentexpirydate(31December1974)oftheCommonwealth Sugar
Agreement ;
(ii)theadvisabilityoftakingaccount,intheCommunity'ssupplyforecasts,
ofthecommitments whichmaybeenteredintobythesecountries.
Onthebasisoftheabovepoints,theCommissionproposestotheCouncil
thatthenegotiations shouldbeconductedonthebasisofthefollowing
directives ,ontheonehandastheyconcernthedevelopingcountriesreferred
toinProtocol22totheActofAccession,andontheotherastheyconcern
India.

ANNEX I
■Recommendation foradecision oftheCouncil
andoftherepresentatives oftheGovernments oftheMember States ,
meeting intheCouncil ,
onsupplementing thedirectives forthenegociations with theACPStates
The Council oftheEuropean Communities andtheRepresentatives ofthe
Governments oftheMember States meeting intheCouncil ,
Having regard totheTreaty establishing theEuropean Eoonomio Community ,
andinparticular Article 238thereof ;
Having regard totherecommendation from the Commission :
1
Whereas the Council and theRepresentatives oftheGovernments ofthe
Member States ,meeting intheCouncil ,anthorized theCommission ,by
aDecision of15October 1973 ,toopen negotiations with theACPStates
fortheconclusion ofoneorpossibly more conventions defining association
relations ascomprehensively aspossible ;
Having regard totheadditional directives adopted bythe Council and
theRepresentatives oftheGovernments oftheMember States meeting in
theCouncil on19April 1974 ,4June 1974 ,25June 1974 and15October 1974
Uhereas these directives should besupplemented forthecontinuation of
thenegotiations ;
HAVE DECIDED ASFOLLOWS :
Sole Article
Thenegotiating directives adopted bytheDecisions of15October 1973 ,
19April 1974 ,4June 1974 ,25June 1974 and15October 1974 are supple­
mented bythefollowing directives .

-2-
TheCommunityshallbeprepared ,tograntaguaranteetopurchaseraw.
andwhitecanesugaroriginatinginandcomingfromthecountries
referredtoinProtocolNo22oftheActofAccession.
Eachcontracting countryshallaccepttheobligationtodeliverthe
negotiatedquantity.
Theoverallquantitywhiohmaybocoveredbythegna^ayteemaynot
exceedforeachtwelve-monthly period,1400000metrictonsexpressed
intermsofwhitesugar.Thisquantityshallbedividedamongthe
variouscountriesconcerned.
Measurestoensurethattheabovereciprocalobligationsarecomplied
withshallbedefinedduringthenegotiations .
ThesugarwillbemarketedonthefreemarketoftheCommunityin
accordancewiththenormalconditionsofthatmarket.However,
guaranteedpurchasepricesshallbeensuredforraw"sugarandwhite
sugar.Theseguaranteedpricesshallbisnegotiated ,.withinthelimit
ofthepriceapplicableintheCommunity.Thesepricesshallbe
guaranteedcifatEuropeanportsoftheCommunityandshallbefixed
forsugarofthestandardquality.
Theymayberevisedannuallybyreferencetothepricesapplicable
intheCommunityduringtheperiodinwhichthesrugarwillbe
marketed.
Thisagreementonsugarshallbeanintegralpartoftheassociation
convention,theoperatingrulesofwhichitshallfollow,
2hereciprocalcommitmentsshallbeenteredintoforaperiod
%corresponding tothatoftheConvention'stradeprovisionsandmay
,•berevisedorextendedinaccordancewiththeprocedureadoptedfor
theperiodicalreviewoftheseprovisions » ,
TheprovisionsoftheConvention„maybeusedtohelp,wherenecessary,
improvesugarcaneproductioninthecountriesinquestionor,in
certaincases,economicdiversification .
/>
(l)InthisamountareincludedthequantitiesinrelationtoIndiaandtheCountriesandterritoriescoveredbyArticle118oftheAccession
Treaty. .._

»ANNEX II
Recommendation for adecision oftheCouncil authorising
theopening ofnegotiations with India .
THE COUNCIL OFTHE EUROPEAN COMMUNITIES
Having regard totheTreaty establishing theEuropean Economic Community
and inparticular Article 238thereof ;
Having regard totherecommendation oftheCommission ;
Whereas theCommon Declaration ofIntent annexed totheTreaty ofAccession of
new member States tothe EEC and the E.C.A.E. provides that thequestion of
export ofsugar from India totheCommunity after thetermination ofthevalidi
oftheCommonwealth Sugar Agreement shall beregulated bytheCommunity :
HAVE DECIDED ASFOLLOWS :
v Sole article
.
TheCommission isauthorised toopen negotiations for theconclusion ofa
convention between theEuropean Economic Community and India concerning
theimportation ofsugar coming from India ;
Itwill conduct these negotiations within the framework ofthe
following directives .

1.TheCommunity shall beprepared togrant aguarantee topurchase raw
andwhite cane sugar originating inandcoming from India *This country
shall aocept theobligation todeliver thenegotiated quantity .
2*Theoverall quantity which maybecovered bytheguarantee may not .
exceed foreach twelve-monthly period ,1400000metric (l)tons
expressed interms ofwhite sugar ,whioh theCommunity isprepared
tonegociate with thecountries referred toinProtocol 22totheAct
ofAocession .
3*Measures toensure that theabove reciprocal obligations arecomplied
with shall bedefined during thenegotiations *
4*Thesugar will bemarketed onthefree market of -theCommunity in
accordance with thenormal conditions ofthat market *However ,guaranteed
purchase prices shall beensured for raw sugar and -white sugar *These
guaranteed prices shall benegotiated within the limit oftheprice
applicable intheCommunity .These prices shall beguaranteed oifat
European ports oftheCommunity and shall befixed forsugar ofthe
standard quality .
5*They mayberevised annually byreference tothe prices applicable in
theCommunity during theperiod inwhioh the sugar will bemarketed *
(l)Inthis amount areincluded thequantities inrelation toIndia and
theCountries andterritories covered byArticle 118oftheAocession
.Treaty . ... ■

ANNEX III .
Commission Communication onthe
conclusions reached intheexploratory talks
with the sugar-exporting ACP States
(September-October 1974 )
The statements made 'show -that therepresentatives ofthe sugar-exporting
ACP States have "been able toexpress their point ofview -which they
consider tobeacontribution tothepreparation ofmeetings atministerial
level –with some precision asregards theaspects concerning duration of
thearrangement andquantities ,butwith less precision asregards the
aspects ofprices and institutions .
With regard totheduration ofthearrangement ^afirm political commit­
ment guaranteeing the sugar inquestion continuous access foranindefinite
period oftime was requested .This commitment would take theform ofan
arrangement covering asufficiently long initial period andbeing extended
from oneyear tothenext .Theadvantages ofalong-term guarantee ,in
view ofthepresent very high world prices andtheburden ofindustrial
investments ,andthe sugar cane economic cycle were raised tosupport this
argument .
With regard tothequantity ofsugar forwhich access totheCommunity
market would beguaranteed itwasacknowledged that anoverall figure of
not less than 1.4million metric tons could beadopted asabasis .This
figure wasaccepted bytheACP States subject toagreement onprices and
other conditions ,but itwaspointed outthat certain countries have now
estimated that they would have toobtain increases intheir present
allocations under the CSA .
After asuccessful conclusion tothediscussions onquantities and prices
theACP States would give thenecessary assurances with regard toindividual
andoverall supplies .Moreover ,thes6 States want toprovide ashare ofthe
extra supplies needed asaresult ofthegrowth ofconsumption inthe
Community .
However ,itshould benoted that intheir opinion problems ofquantities
and prices cannot beseparated .
i
With regard toprices theACP States have stated that the prices paid to
European producers could not beconsidered asthemaximum price they could
expect toreceive fortheir cane sugar .They have stressed that their

basioconcernwas"theprioewhichwouldfinallybeobtained ,inthe
producercountriesinviewoftheoftenhighandvariablefreight
rates.
Whileadmittingthatthiswasoneofthemostimportantaspects,
whichcouldbeexploreddefinitively onlyatthelevelofthe
negotiations ,theACPStatesindicatedthatafairpricewhichis
reasonabletinderthepresentcircumstances shouldbespecifiedby
referencetopresentworldprices,thepricepaidrecentlyunderthe
Commonwealth SugarAgreement,thepriceincreaseswhichthe
Community'sproducershavereceived,andtheneedtoimprovethe
standardoflivingoftheirpeoples.
Furthermore ,thepossibility shouldbe-reservedoftakingeconomic
changesintoaccountthroughan-annualreviewenabling,forexample,
thevariousill-effects ofinflationtobeoffset.
Withregardtotheinstitutions tobesetuptoadministersuchan
arrangement ,theACPStatesfeltthatdetaileddiscussions couldbe
heldattheappropriate timebetweentherepresentatives ofthetwo
Parties.Theprogramming ofshipmentsandthequestionofthe
marketingyear-wereraisedinparticular,andthedesirewasexpressed
that*theprovisionsshouldevidenceaspiritofcooperation and
.flexibility .
Asregardstiming,theimmediateconcernoftheACPStatesisthe
nextmarketingyear,forcommitments mustbeundertakenfora
substantialpartofthecrop(NorthernHemisphere)'duringthelast
quarteroftheyear.Asforthegeneralnegotiations ,thedateon
whichtheCommunitywillbepreparedtostartnegotiations withthe
MinistersconcernedwasregardedbytheACPStatesasthecritical
factor. '.