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Vol.1975/0002

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COMMISSION OFTHEEUROPEENCOMMUMTIBS
COM(75)9final
Brussels.10January1975
PROPOSAL FORA
REGULATION "(ESC)OPTHECOUNCIL
concerningthesecondstageofthesubsidisedimportation of
sugarandamendingRegulation (EEC)No2931/74
(submittedtotheCouncilbjtheCommission)
0011(75'9final

EXPLANATORY KMORAKTOUM
1.WhenthisproposalispresentedtotheCouncilthestanding -invitations
totenderforgrantingimportsubsidieshasattributed '0:110December
1974and"on8January1975a-totalquantityof157*702tonnesexpressed
inwhitesugarvalue,therefore,aquantityof42.000tonnesremainsfor
.firs';stage*Theattributedquantitiesaredistributed asfollowsi
127»7v2tonnestoUnitedKingdom,14.720tonnestoPrance,10.000tonnes
toIreland,2.700tonnestoGermanyand2.500tonnestoBelgium.The
weightedaverageofthegrantedsubsidyfortheattributedsubsidy
amountsto40,68unitsofaccountper100kilograms.
animport
2.AftertheCommissionproposalontheintroductionof/subsidyforwhite
sugarandraissugarhadbeenpresentedtotheCouncilon2Ootober1974
thesupplysituationintheCommunityhasbecomesignificant iTQFse
mostlybecauseofalowerharvestthanforeseenduetotheverybad
weatherconditionssincethestartofOctober1974?thishasinvolved
severelossesparticularly inthenothernregionsoftheCommunity.
Thisdeficitincludesthenon-appearance ofsomedeliveriesfromcoun­
triesreferredtoinProtooclH617oftheAocessionTreaty.
3.ThefirstestimatesfromOctober1974onfinancialconsequences of
theenvisagedoperationamountedtotheorderof60-100millions
unitsofaccountsundertheassumption ,thatasubsidyof20unitsof
per;100kilogranmesaccounts/wasgrantedforimportof300-500.000tonnesofwhitesugar.
Accordingtotherevisedjudgmentlaiddownintheframeworkofthe
agriculturelpriceproposals^rto£al^^i/?ityUforbea?npor?§d'^wasestimated
to300,000tonneswithanecessaryaveragesubsidyof25unitsofaccount
per100kilogram^^csulting intotalcosfeof200millionsunitsof
account.
TheCommissionestimatesthatitispossiblewithinthelimitofthis
judgmentof200millionsunitsofaccounttodecidetoimporta
supleracntary quantityof300.000tonnes.
Ontheotherhandtheunitcostsoftheoperationarelikelytobe
reducedprogressivly inthecominginvitationstotenderasthetime-lag
betweenthedateofimportation andthedayofreproduction willbe
reduced.
Untilnowthefinancialconsequences oftheattribution of157*702
tonnesamountto64millionsunitsofaccounttowhichtheconsequence
oftheriseofthecommonpricesfrnm1July1975shallbeadded.
./•

-2-
Thedifference "betweenthegrantedsubsidyinrespectoftheirritations
totenderof18December1974and8January1975and-thesubsidyestimatedas
necessaryinNovember1974isexplainedinparticularbythedifficulties
whicharosefromtheParisTerminalMarketandtheconsequenses thereof,
thatistheabsenceofrealfuturesmarketforwhitesugarandforthat
reasontheimpossibility ofmakingarbitrage.
Ontheonehandthissituationhasmadeitnecessaryfortheoperatorsfor
thepurposeofreexportation ofwhitesugartousetheLondonTerminal
Marketwheretherecordedpricesforrawsugarconsequently increasetheir
commercialrisk,whichinturnsresultsinanincreaseofthecostsofthe
operationand,ontheotherhand,thepreventionofthe..possibility of
talcingadvantageofthepremiumonthewhitesugarvisavisrawsugar.
Moreover,one-haveseenanextensionofthedifference ,whichwasvery
slightlyintheautumn1974,betweenthespotpricesforimmediatedeliveriestheriskderivedfr\
andtheOctoberandNovember1975prices.TheCommissionmentioned/theextension
ofthisdifference whentheoriginalproposalwaspresented.

PRQP03AL FQfi A
!•: "A-J..TCIT (!£■/?)oy ,T,ITEroiTTTOIL
concerning thesecond stage ofthesubsidised importation
ofsugar andamending Regulation (EEC)N0 2931/74
THE COUITCIL OPTHEEUROPEAN CCUMUEITIES ,
Having regard totheTreaty establishing theEuropean Economic Community ;
Having regard toCouncil Regulation NoIOO9/67/EEC^^Nof18December 1967
onthecommon organisation ofthemarket inSugar ,aslast amended by
Regulation (EEC)No2476/74 andinparticular 16(3)thereof ;
Having regard toCouncil Regulation No293l/74^of18November 1974
introducing asubsidy onimport ofwhite andrawsugar ,andinparticular
Article 2(3)thereof ;
Having regard totheproposal from theCommission ;
Whereas Article 2ofRegulation (EEC)No2931/74limited thefirst stage
ofthesubsidised imports to200.000 tonnes ;whereas thesame Article
provides that theCouncil shall decide upon later stages inthelight of
experience andtheeffectiveness ofthat measure ;.
Whereas byvirtue oftheexperience gained andofthedeterioration inthe
supply situation intheComnmnity inrecent weeks itisnecessary to
provide forthesubsidised importation ofasuppleinntary quantity of
300.000 tonnes ofsugar ;
Whereas itisnecessary ,particularly byvirtue oftheprobable change
inCommunity sugar prices ,toprovide forthepossibility ofanadjustment
being made inthemaximum selling price tobeobserved bytenderers ;
Whereas inorder toattain abetter balance ofsupplies throughout the
Community inmaybenecessary incertain circumstances torestrict these
imports toparticular deficit regions ;
Whereas Article 2ofCouncil Regulation (EEC)No608/72 of23March 1972f
laying down rules ofapplication inthesugar sector intheevent ofan
appreciable rise inworld market prices ,provided that theCouncil maylimit
subsidised sugar imports tospecified regions ;whereas itisnecessary
under certain conditions toprovide that such regions aredetermined accor­
dingtotheprocedure laiddowninArticle 40ofRegulationNo IOO9/67/EEC;
11O.J. No308of18.12.1967 ,p.l 3)O.J.N0 311of22.11.1974 ,p.8
2)0^.NoL264of1.10.1974 ,p.704)0.J.NO 75of28.3.1972 ,p.5 •/•

HASADOPTEDTHISRÛJULATIOÏT i
Article1
ThthequantityreferredtoinArticle2(2)ofRegulation(EEC)Ho2931/74
she.llbeaddedaquantityof300u000tonnesasthesecondstage.
Article2
ThefollowingshallbeaddedtoArticle3(3)ofRegulation(EEC)No2931/74
"nevertheless ,thismaximumprice ,levelnay"be35?8lunitsofaccountper
100kilogrammes ofwhitesugar.".
Article3
ThefollowingshalbeinsertedinRegulation(EEC)No2931/74*
"Article4(a)
1.WhereonthebasisofestimatesofOnnrmmtyproductionandofdeliveries
totheCommunityfromthirdcountries/assuredsupplyofsugarinoneor
moreimportantconsumingregionsoftheCommunityislessthan90%of
theirnormalconsumptionthesubsidisedimportsunderthesecondstage
shallbewhollyorpartlylimitedtotheregionsinquestion.
2.BywayofderogationfromArticle2(l)ofRegulation(EEC)N06O8/72
theimportingregionsreferredtoinparagraph1shallbedetermined
aocordingtotheprocedureiniddowninArticle40ofRegulationNoIOO9/67/EEC*
Article4
ThisRegulationshallenterintoforceonthe dayfollowing
itspublicationintheOfficialJournaloftheEuropeanCommunities.
ThisRegulationshallbebindinginitsentiretyanddirectlyapplicable
inailMemberStates
DoneatBrussals, FortheCouncil