CELEX: 51983PC0172
Language: en
Date: 1983-06-13
Title: Proposal for a COUNCIL REGULATION (EEC) on the conclusion of an Agreement in the form of an exchange of letters between the European Economic Community and the Republic of India on the restoration to the latter of an agreed quantity of preferential sugar#Proposal for a COUNCIL REGULATION (EEC) on the conclusion of an Agreement in the form of an exchange of letters between the European Economic Community and Barbados, Belize, the People's Republic of the Congo, Fiji, the Cooperative Republic of Guyana, Jamaica, the Republic of Kenya, the Democratic Republic of Madagascar, the Republic of Malawi, Mauritius, the Republic of Surinam, the Kingdom of Swaziland, the United Republic of Tanzania, Trinidad and Tobago, the Republic of Uganda, the Republic of Zimbabwe and the Republic of the Ivory Coast on the accession of the latter country to Protocol 7 on ACP sugar annexed to the Second ACP-EEC Convention (submitted to the Council by the Commission)

ARCHIVES HISTORIQUES
DE LA COMMISSION
COLLECTION RELIEE DES
DOCUMENTS "COM"
COM (83) 172
Vol. 1983/0048
 ---pagebreak--- Disclaimer
Conformément au règlement (CEE, Euratom) n° 354/83 du Conseil du 1er février 1983
concernant l'ouverture au public des archives historiques de la Communauté économique
européenne et de la Communauté européenne de l'énergie atomique (JO L 43 du 15.2.1983,
p. 1), tel que modifié par le règlement (CE, Euratom) n° 1700/2003 du 22 septembre 2003
(JO L 243 du 27.9.2003, p. 1), ce dossier est ouvert au public. Le cas échéant, les documents
classifiés présents dans ce dossier ont été déclassifiés conformément à l'article 5 dudit
règlement.
In accordance with Council Regulation (EEC, Euratom) No 354/83 of 1 February 1983
concerning the opening to the public of the historical archives of the European Economic
Community and the European Atomic Energy Community (OJ L 43, 15.2.1983, p. 1), as
amended by Regulation (EC, Euratom) No 1700/2003 of 22 September 2003 (OJ L 243,
27.9.2003, p. 1), this file is open to the public. Where necessary, classified documents in this
file have been declassified in conformity with Article 5 of the aforementioned regulation.
In Übereinstimmung mit der Verordnung (EWG, Euratom) Nr. 354/83 des Rates vom 1.
Februar 1983 über die Freigabe der historischen Archive der Europäischen
Wirtschaftsgemeinschaft und der Europäischen Atomgemeinschaft (ABI. L 43 vom 15.2.1983,
S. 1), geändert durch die Verordnung (EG, Euratom) Nr. 1700/2003 vom 22. September 2003
(ABI. L 243 vom 27.9.2003, S. 1), ist diese Datei der Öffentlichkeit zugänglich. Soweit
erforderlich, wurden die Verschlusssachen in dieser Datei in Übereinstimmung mit Artikel 5
der genannten Verordnung freigegeben.
 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                                    C0MC83) 172 final
                                                                    B r u s s e l s , 13 June 1983
                                                 P r o p o s a l for a
                                           ÇQUNÇil _r e g u l a x i o n _(e e ç )
    on the c o n c l u s i o n of an A g r e e m e n t in the form of an exchange of
    lett ers b e t w e e n t h e E u r o p e a n E c o n o m i c Co m m u n i t y and the Republic
    of India on the r e s t o r a t i o n to the latter of an agreed quantity
                                            of p r e f e r e n t i a l sugar
                                                 P r o p o s a l for a
                                           CQUNCIL_REGULATION_(EEC)
    on the c o n c l u s i o n of an A g r e e m e n t in the form of an exch ang e of
      l e tt ers b e t w e e n the E u r o p e a n Ec o n o m i c C o m m u n i t y and Barbados,
  Be l i z e , the P e o p l e ' s R e p u b l i c of the Congo, Fiji, the Cooperative
  R e p u b l i c of G u y a n a , J a m a i c a , the R e p u b l i c of Kenya, the Democratic
         R e p u b l i c of M a d a g a s c a r , the Re p u b l i c of Malawi, Mauritius,
       the R e p u b l i c of S u r i n a m , the K i n g d o m of S w a z ila nd , the United
  R e p u b l i c of T a n z a n i a , T r i n i d a d and To b a g o , the Republic of Uganda,
        t h e R e p u b l i c of Z i m b a b w e and the R e p u b l i c of the Ivory Coast
    on the a c c e s s i o n of the latter c o u n t r y to Prot oco l 7 on ACP sugar
                           a n n e x e d to the S e c o n d A C P - E E C Co n v e n t i o n
                        ( s u b m i t t e d to the Coun cil by the Commission)
  C O M (83) 172 final
 ---pagebreak---  P R E F E R E N T I A L SUGAR; TH E CASES OF IN DI A AND THE IVORY COAST
                       This pa p e r ex p l a i n s the n a t u r e of the
                       t w o cases and the b a c k g r o u n d to t h e m and
                       ma k e s r e c o m m e n d a t i o n s to the Council (1)
 T H E FACTS
 India
 1. The A g r e e m e n t b e t w e e n the EEC and the Repu bli c of India on cane sugar
       ( h e r e i n a f t e r r e f e r r e d to as "the A g r e eme nt ") (2) ente red into force on
       18 J u l y 1975. It i n c o r p o r a t e s p r o v i s i o n s simi lar to those co ntained in
       the A C P S u g a r P r o t o c o l , and like that Protocol it is of indefinite
      duration.
 2. Un d e r the A g r e e m e n t I n di a's o r i g i n a l ag r e e d q u a n t i t y (i.e. preferential
       su ga r q u ot a) was 25 0 0 0 t o nn es. Ac t i n g under the prov isi on s of Article 7(2)
      of t h e A g r e e m e n t (3) the C o m m i s s i o n d e c i d e d to reduce this quota to zero
      t o n n e s wi th ef f e c t f r o m 1 J u l y 1981.
 3. H a v i n g r e a c h e d this d e c i s i o n the C o m m i s s i o n took the f o l l owi ng further con­
       s i d e r a t i o n s i n t o account:
      - wh i l e A r t i c l e 7(4) of the Su ga r P r ot oco l p r o v i d e s the p o s s i b i l i t y for
           all the A C P su g a r s u p p l i e r s (even th o s e whose qu otas have been reduced
           t o z e r o to n n e s ) to be n e f i t fr om p e r m a n e n t re al l o c a t i o n s of quotas no
           su ch p o s s i b i l i t y is p r o v i d e d for India under the Ag reement. This means
           that as long as I n di a's qu o t a remains at ze ro the Ag reement has no practical
           e f f e c t , d e s p i t e its i n d e f i n i t e dura tio n;
      - the t r a d e r e l a t i o n s b e t w e e n the C o m m u n i t y and India, of which the Agreement
           is a pa r t , are a s e n s i t i v e p o l i t i c a l issue, p a r t i c u l a r l y b e ca use of the
          m a s s i v e i m b a l a n c e in E E C - I n d i a tr a d e in the Co mm uni ty 's favour.
(1) all t o n n a g e s in t h i s P a p e r a r e e x p r e s s e d in white value
(2) OJ No L 190, 2 3 . 7 . 1 9 7 5 , p.35
(3) I n d i a n f a i l u r e to s u p p l y , and C o m m i s s i o n r e j e cti on of a claim for
      fo r c e m a j e u r e
 ---pagebreak---                                               -  2 -
   4. A c c o r d i n g l y , in c o n v e y i n g its d e c i s i o n to the I n d i a n a u t h o r i t i e s , the
         C o m m i s s i o n sa id that it wo u l d be p r e p a r e d to r e c o m m e n d to the Council
        at least the p a r t i a l r e s t o r a t i o n of In d i a ' s o r i g i n a l q u o t a with effect
        fr o m 1 J u l y 1983.
                              now
   5 . In di a is not / c o n t e s t i n g t h e C o m m i s s i o n ' s d e c i s i o n to reject its c l a i m
        for fo r c e m a j e u r e but it has r e q u e s t e d a r e s t o r a t i o n of its o r i g i n a l
        q u o t a with ef f e c t f r o m 1 J u l y 1 9 82 (1) .
  The Iv o r y Coast
                                                                                                                 Co uncil
  6. With his le tter d a t e d 22 F e b r u a r y 19 82 t o the P r e s i d e n t of the EE(
        t h e a m b a s s a d o r of the I v o r y Coast f o r w a r d e d a requ est b y his g o v e r n m e n t
        for a c c e s s i o n to the Su g a r P r o t o c o l . Th is was a c c o m p a n i e d b y d e t a i l s of
        the s t r u c t u r e , o r i g i n s an d f u t u r e p r o d u c t i o n p r o g r a m m e of the su ga r
        i n d u s t r y (2).
  7. Th is request d i d not re fe r to a s p e c i f i c p r e f e r e n t i a l qu o t a , but it is
        u n d e r s t o o d that the I v o r y Coast is s e e k i n g a q u a n t i t y of at least
        25 00 0 to n n e s . It se em s cl e a r that the I v o r y Coast has the c a p a c i t y
        to ex po rt such a q u a n t i t y on a p e r m a n e n t b a si s.
  8. The Joint A C P - E E C D e c l a r a t i o n a n n e x e d to the Su g a r P r o t o c o l p r o v i d e s
        that a n y request fr o m an AC P n o n - m e m b e r of that P r o t o c o l to p a r t i c i p a t e
        in its p r o v i s i o n s "s ha ll be e x a m i n e d " b y the C o n t r a c t i n g Pa r t i e s to
        the P r o t o c o l . N o c r i t e r i a have b e e n e s t a b l i s h e d for such e x a m i n a t i o n s
        nor do es the o b l i g a t i o n to e x a m i n e c o mm it th e C o n t r a c t i n g Pa r t i e s
        in a d v a n c e to a p a r t i c u l a r o u t c o m e .
   9. The A C P m e m b e r s of the Pr o t o c o l h a v e e x p r e s s e d t h e i r c o l l e c t i v e support
        for the request of th e I v o r y Coast (3). But t h e y h a v e r e p e a t e d l y
        e m p h a s i z e d t h e i r v i e w that the q u o t a of an y n e w p a r t i c i p a n t c o u n t r y
        s h o u l d be a d d i t i o n a l t o the to ta l of the q u o t a s o r i g i n a l l y i n s c r i b e d
        in the P r o t o c o l .
(1) see An n e x I
(2) D o c . 5 1 3 9 / 8 2 of 2 5 . 2 . 1 9 8 2
(3) D o c . A C P - C E E 2 1 3 0 / 8 2 of 2 5 . 2 . 1 9 8 2
 ---pagebreak---                                                        - 3 -
*    10. It n o w r e ma ins for the Co m m u n i t y , as the i m p o r t i n g Co n t r a c t i n g Party
            to the Su g a r P r o t o c o l , to e x a m i n e the request and to d e ci de whether it
'           can a g r e e that the Iv o r y Coast sh o u l d join the Prot oco l and, if so, with
            what qu o t a . It s h o u l d be n o t e d that the C o m m i s s i o n ' s f a c u l ta ti ve power
            un d e r A r t i c l e 7(4) of the Prot oco l to make pe r m a n e n t re-a llo ca tio ns of
            A C P s u g a r d o e s not e x t e n d to n o n - m e m b e r s of the Protocol.
    Ge nera l
    11. Of the o r i g i n a l total q u a n t i t y of p r e f e r e n t i a l sugar (1.3047 mio tonnes),
           12 0 0 0 t o n n e s are at pr e s e n t un a l l o c a t e d . This q u a n t i t y has arisen as a
           result of d e c i s i o n s by the C o m m i s s i o n on shortfa ll s.
    12. Up to the p r e s e n t the C o m m i s s i o n has ma de pe r m a n e n t re-a llo ca tio ns to Kenya
           ( 3 907 to n n e s ) and to the Congo ( 3 043 tonnes). In addition, the Council
          a g r e e d in 1982 to admit Z i m b a b w e to the Sugar Protocol with a quota of
          25 00 0 t o n n e s . All th e s e q u a n t i t i e s were found from within the total
          q u a n t i t y r e f e r r e d to in the p r e c e d i n g pa r a g r a p h .
   13. W h e n c o n s i d e r i n g the a c c e s s i o n of Z i m b a b w e to the Second ACP-EEC Con­
          v e n t i o n the Co u n c i l d e c i d e d in an inte rna l d e c l a r a t i o n on sugar (1) that
         the to t a l q u a n t i t a t i v e u n d e r t a k i n g s p r o v i d e d for in the Sugar Protocol
         s h o u l d not be e x c e e d e d . The C o m m i s s i o n be l i e v e s that this d e ci sio n can
         v a l i d l y be e x t e n d e d to the total q u a n t i t y of p r e f e r e n t i a l sugar referred
         to in p a r a g r a p h 11. The re m a i n d e r of this pa pe r is t h e r e f o r e d e v o t e d to
         the q u e s t i o n w h e t h e r the u n a l l o c a t e d q u a n t i t y of 12 0 0 0 tonnes should
         n o w be r e d i s t r i b ut e d a n d, if so, how.
   DISCUSSION
   Econ omi c c o n s i d e r a t i o n s
  14. Gi v e n its large s t r u c t u r a l s u rp lus of su ga r p r o d u c t i o n over consump ti on
         it is cl e a r that th e C o m m u n i t y does not need a n y p r e f e re nt ial sugar for
        the p u r p o s e of e n s u r i n g a d e q u a t e s u pp lie s for its consumers.
  15. It f o l l o w s that e v e r y t o n n e of p r e f e r e n t i a l sugar which is imported and
        c o n s u m e d d i s p l a c e s an e q u i v a l e n t q u a n t i t y of C o m m u n i t y sugar which must
        th e n be d i s p o s e d of o t h e r th an on the internal ma rket. In short, the
        d i s p l a c e d s u g a r has t o be e x p o rte d; and for most of the time this
        re q u i r e s e x p o r t r e fu nds wh ic h are p r o v i d e d by the C o m m u n i t y on the
       b u d g e t of the EAGGF.
  (1) Doc 1 0 3 2 8 / 8 0 of 1 7 . 1 0 . 1 9 8 0
 ---pagebreak---                                                                        - 4 -
16. If the 12 0 0 0 t o nn es are not r e d i s t r i b u t e d , a n d if t h e w o r l d p r i c e w e r e to
     r e ma in at or about its p r e s e n t levels, t h e n the an n u a l rate of s a v i n g s to
     the bu dg et wo u l d be of t h e o r d e r of 4 . 5 m i l l i o n ECU. It s h o u l d be no t e d ,
     h o w e v e r , that a r e d i s t r i b u t i o n w o u l d not of i t s e l f r e q u i r e the e x i s t i n g bu d g e t
     p r o v i s i o n to be i n c r e a s e d ( see p a r a g r a p h            31 b e l o w ) .
17. But f r o m the po i n t of v i e w of In d i a and t h e I v o r y Coast the e c o n o m i c c o n s i ­
     d e r a t i o n s i n v o l v e d in r e d i s t r i b u t i o n s a s s u m e an e n t i r e l y d i f f e r e n t i m p o r t a n c e .
      For t h e s e c o u n t r i e s p r e f e r e n t i a l s u g a r c o n f e r s tw o h i g h l y d e s i r a b l e ad v a n t a g e s :
      a g u a r a n t e e d p r i c e wh ic h for mo st of t h e t i m e is s i g n i f i c a n t l y h i g h e r th an
      the w o r l d p r i c e (1) and, e q u a l l y i m p o r t a n t , a g u a r a n t e e d m a r k e t ou t l e t .
                                                                                                                                   •
 18. Th is c e r t a i n t y of an i n c o m e wh ic h can b e c a l c u l a t e d in a d v a n c e he l p s the
      c o u n t r i e s c o n c e r n e d in t h e i r f o r w a r d e c o n o m i c p l a n n i n g . In c o n t r a s t , t h e i r
      e x p o r t s to the wo r l d m a r k e t are at the m e r c y of the in h e r e n t i n s t a b i l i t y
       of that m a r k e t .
 19.. in th is c o n n e c t i o n it is wo rt h n o t i n g that the c u r r e n t w o r l d p r i c e levels
       are well b e l o w the p r o d u c t i o n costs of ev e n the large and e f f i c i e n t p r o d u c e r s ,
       such as A u s t r a l i a and T h a i l a n d . For the s m a l l e r d e v e l o p i n g c o u n t r y e x p o r t e r s
       the p r es ent wo r l d p r i e ® are little short of d i s a s t r o u s , an d in t h e s e c i r c u m ­
       s t an ces p r e f e r e n t i a l su g a r b e c o m e s m o r e t h a n e v e r a t t r a c t i v e .
  (1) In 1 9 8 2 / 8 3 t h e g u a r a n t e e d p r i c e f o r r a w p r e f e r e n t i a l sugar, is 4 2 6 . 3 E C U / t o n n e
       c o m p a r e d with a wo r l d p r i c e ( F e b r u a r y 1983) of ab ou t 1 7 0 E C U / t o n n e .
 ---pagebreak---                                                       - 5 -
 Political considerations
 20. In the ca se of India r e f e r e n c e has be en ma de in pa r a g r a p h 3 to the
        i m b a l a n c e in E E C - I n d i a trade. This s i t u a t i o n has cr eated political
      d i f f i c u l t i e s , and the In dian a u t h o r i t i e s have m a d e it clear that in
      t h e i r v i e w the w i l l i n g n e s s of the C o m m u n i t y to take steps to redress
      the s i t u a t i o n must i n c l u d e a read ine ss to restore prefere nt ial access
      for I n d i a n sugar.
21 . In the ca se of the Iv or y Coast it is a p p r o p r i a t e to recall the origins
      of t h e S u g a r Pr o t o c o l which are e x p r e s s e d in the f o l l owi ng extract from
      P r o t o c o l 22 to the 1972 Act of Accession:
                        " The C o m m u n i t y will have as its firm p u rp ose the safegua rd ing
                            of the i n t e r e s t s of all the coun tri es referred to in this
                            P r o t o c o l (1) wh os e e c o n o m i e s de p e n d to a c o ns ide ra ble extent
                            on the ex p o r t of p r i m a r y pr o d u c t s , and p a r t i c u l a r l y of sugar.
                            The q u e s t i o n of su ga r will be se t t l e d within this framework,
                            b e a r i n g in m i n d with r e ga rd to e x po rts of sugar the importance
                            of t h i s p r o d u c t for the e c o n o m i e s of several of these countries
                            a n d of the C o m m o n w e a l t h co u n t r i e s in p a r t i c u la r." .
  22. In the v i e w of the C o m m i s s i o n , t h e C o m m u n i t y u n d e r t a k i n g qu ot ed in the
      p r e c e d i n g p a r a g r a p h ( w h i c h fo un d its p r a c t i c a l e x p r e s s i o n in the form
      of t h e S u g a r Pr o t o c o l ) was not i n t e n d e d to a p p l y to co untries which d e ­
      v e l o p e d a s u g a r - e x p o r t i n g c a p a c i t y su b s e q u e n t to the en t r y into force
     of the Su g a r Pr o t o c o l .
 23. N e v e r t h e l e s s , th is s i t u a t i o n does not p r e c l u d e the C o m m uni ty from exam ini ng
     the I v o r y Coast request on its own me r i t s in the c i rc ums ta nce s which have
     d e v e l o p e d si n c e the Su g a r Prot oco l e n t e r e d into force.
 24. It is c l e a r f r o m the d o c u m e n t s a c c o m p a n y i n g the Ivory Coast request that
     th e e s t a b l i s h m e n t of the sugar i n d u s t r y in that co u n t r y and its rapid
     g r o w t h s i n c e 1 9 7 8 h a v e d e p e n d e d l a rg ely on finance, mate ria ls and
     e x p e r t i s e p r o v i d e d fr o m in d u s t r i a l sources wi thin the Community. In some
     ca se s g u a r a n t e e s we re p r o v i d e d b y the M e m b e r States concerned.
 (1) i.e. the A s s o c i a t e d A f r i c a n and M a l a g a s y St ates and the independent
     d e v e l o p i n g C o m m o n w e a l t h co u n t r i e s listed in An n e x VI to the Act
 ---pagebreak---                                                       -  6 -
25. It can t h e r e f o r e r e a s o n a b l y be a r g u e d that the C o m m u n i t y s h o u l d be p r e p a r e d
      to he lp the Iv or y Coast to r e a l i s e some e c o n o m i c b e n e f i t f r o m its n e w l y -
      e s t a b l i s h e d su ga r i n d u s t r y and t h e r e b y to as s i s t that c o u n t r y in its
      e f f o r t s to d i v e r s i f y i t s . e c o n o m y .
  RECOMMENDATIONS
2 6 .In the light of what has b e e n sa id in the p r e c e d i n g p a r a g r a p h s the Co m m i s s i o n
      b e l i e v e s that the b a l a n c e of the a r g u m e n t s s u p p o r t s the v i e w that the
      12 0 0 0 to nnes r e f e r r e d to in p a r a g r a p h 11 s h o u l d n o w be r e d i s t r i b u t e d b e t ­
      we en India an d the' I v o r y Coast.
27 . In w h a t e v e r w a y the q u a n t i t y is d i v i d e d t h e r e is b o u n d t o be an e l e m e n t of
        a r b i t r a r i n e s s . But it se em s r e a s o n a b l e t o t a k e t h e f o l l o w i n g f a c t o r s into
        account:
                  - if the Iv o r y Coast is a d m i t t e d to the S u g a r P r o t o c o l it will b e c o m e
                       e l i g i b l e not o n l y for a n y ' t e m p o r a r y r e - a l l o c a t i o n s un de r A r t i c l e 7(2)
                       of the Pr o t o c o l but al so f o r / p ^ r m a n e n t r e a l l o c a t i o n s the C o m m i s s i o n
                      m a y d e c i d e t o m a k e in the f u tu re. In o t h e r wo rd s the I v o r y Coast
                      wo u l d ha we the p o s s i b i l i t y of i n c r e a s i n g its o r i g i n a l p r e f e r e n t i a l
                      qu o t a , but In di a has no such                p o s s ib ility ;
                  - ev en if the wh o l e of the a v a i l a b l e q u a n t i t y we re r e s t o r e d t o India
                      the latter's n e w qu o t a w o u l d be o n l y 4 8 % of the o r i g i n a l q u o t a w h e r e ­
                      as Ke ny a and the Co n g o ha ve r e c e i v e d r e - a l l o c a t i o n s b r i n g i n g th ei r
                      n e w q u o t a s up to 8 0 % of the o r i g i n a l s .
  2&. If 10 00 0 to n n e s were r e s t o r e d                 to In di a th is w o u l d re p r e s e n t 4 0 % of the
       o r i g i n a l qu ota. Such a q u a n t i t y r e p r e s e n t s a c o m m e r c i a l l y f e a s i b l e                 ■-
       ca r g o for a s i n g l e v e s s e l .
 29- This w o u l d leave 2 0 0 0 t o n n e s for the I v o r y Co ast. Th is is m u c h less th an
      the I v o r y Coast is               s e e k i n g but it w o u l d at least a l l o w that c o u n t r y to
      b e c o m e a m e m b e r of th e Su g a r P r o t o c o l and to sh a r e in its b e n e f i t s in
      the f u tu re.
3 0 · A c c o r d i n g l y , the C o m m i s s i o n r e c o m m e n d s the Council:
      (i) to a g r e e to re s t o r e to India 1 0 . 0 0 0 to n n e s of p r e f e r e n t i a l
               su g a r wi th e f f e c t f r o m 1 J u l y 1983;
 ---pagebreak---                                                 - 7 -
          (ii) t o a g r e e that the Ivory Coast sh ou ld be incl ude d in Arti cle 3(1)
                   of th e Su g a r P r ot oco l with ef fect fr om 1 Ju ly 1983 with an agreed
                   q u a n t i t y of 2 0 0 0 tonnes;
         (iii) to a p p r o v e the a t t a c h e d draft R e g u l a t i o n on the co nc lusion of an
                  A g r e e m e n t in the f o r m of an e x c h a n g e of letters betw een the
                  C o m m u n i t y and India;
          (iv) to a p p r o v e the a t t a c h e d draft R e g u l a t i o n on the co nc lusion of an
                  A g r e e m e n t in the f o r m of an ex c h a n g e of letters b e tw een the
                  C o m m u n i t y , the A C P   St ates c o n c e r n e d and the Ivory Coast.
 FINANCIAL IMPLICATIONS
 31. The p r o p o s a l s set out ab ov e w o u l d be i m p l e m e n t e d wi thin the framework
     of t h e m a n a g e m e n t of t h e co m m o n o r g a n i z a t i o n of the sugar market and
     w o u l d no t, t h e r e f o r e , gi ve rise to ad d i t i o n a l expendi tu re.
 ANNEXES
  I. C o p y of No t e V e r b a l e of 2 0 . 9 . 1 9 8 2 f r o m India to the
     Co m m i s s i o n .
 II. Dr af t of a Coun cil R e g u l a t i o n c o v e r i n g an e x c h a n g e of letters with India.
III. Draft of a C o un cil R e g u l a t i o n c o v e r i n g an e x c h a n g e of letters
     with the A C P st a t e s c o n c ern ed .
 ---pagebreak---                                                           ANNEX      I
                         Dir. gen. I ! G on. Dir. 1
                         N               «> o O i      EMBASSY OF INDIA
                        Oat· 23-9-1582                 CHAUSSEE OE VUUROAT. 217 .
                                                            10M JMUXELIES
                                                             TEL. M O M *
                        Aft
 N o .ERU/ 20’t/a / 15/8^
                                                        September 20, 19,c0.
                         n o t i : y e ;;m a l e
         The Mission of India to the European Economic Community
 presents its compliiien ts to the Directorate General for External.
 Relations of the Commission of the European Communities and has
 the honour to refer to tho Agreement on the; supply of su;;ar by
                                             i
 India to the EEC and (.he correspondence on this subject res Lin.,
 with letter N o .oG( 8 2 )d / 3933 of 17 March,    19^2, from Ilis Exc el . *t
Mr.    rtilhelm Ilaferkamp, Vice—President to the Ambassador of Ii···'....
         For diverse reasons, India lias lost the benefit of del iv rir
 the agreed quota for 2 years (1920—Si and 1981 ■“7 2).                  Given    1' >
 fact that the adverse balance of trade between India and the
Community is increasing at an alarming rate, a fact recognised
 as potentially harmful by both sides, and given India's need
 to increase her exx>ort earnings from all. sources,               the Mission of
 India has the honour to request th·. Commission of the European
 Communities for a restoration of India's su^ar quota under
 the Agreement referred to above with effect from the 1982/23
 delivery period.       The Mission would appreciate ari early positive
 response from the Commission.
         The Mission of India to the Eurojiean Economic· Coi muni i y
 avails itself of this opportunity to renew to the Directorate
Gen..-ml for External Relations of the Commission of the Europr an
C > .mini ties the assurances of its highest consideration.
The Directorate General for
External Relations, Commission of the
Eurox>eari Communities, Rue de la Loi 200,
10*19 Driisaels,
                                                                          a
 ---pagebreak---                                                                                    ANNEX II
                                           COUNCIL REGULATION (EEC)
                     on the conclusion of an Agreement in the form of an exchange of
                     le t t e r s between the European Economic Community and the Republic
                  of In d ia on the re s to ra tio n to the l a t t e r of an agreed quantity
                                                  of p r e f e r e n t i a l sugar
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty e s ta b lis h in g the European Economic Community, and
 in p a r t i c u l a r A r t i c l e 113 t h e r e o f,
Having regard to the proposal from the Commission,
Whereas under the Agreement between the European Economic Community and the
Republic of In d ia on cane sugar ( 1 ) , which entered in to force on 18 July 1975,
In d ia had an o r ig in a l agreed q u a n tity of 25 000 metric tons (white value) of
p r e f e r e n t i a l sugar; whereas with e f f e c t from 1 July 1981 that qu an tity was
reduced to zero by the Commission of the European Communities acting under
the provisions of A r t i c l e 7 (2 ) of the said Agreement;
Whereas the said Agreement is an in t e g r a l part of the growing                  EEC-India trade
r e la t io n s ; whereas there is an imbalance in EEC-India trade in favour of the
Community; whereas t h is s it u a t io n should as f a r as possible be redressed to
the b e n e fit of In d ia ;
Whereas i t is th e r e fo re appropriate fo r the Community to agree to restore an
agreed q u a n tity of p r e f e r e n t i a l sugar to In d ia ; whereas such a re s to ra tio n is
without p reju d ice to the v a l i d i t y of the aforesaid action by the Commission,
HAS ADOPTED THIS REGULATION:
                                                                A rtic le 1
     An agreement in the form of an exchange of l e t t e r s between the European
     Community and the Republic of In d ia on the re sto ra tio n to the l a t t e r of an
     agreed q u a n tity of p r e f e r e n t i a l sugar is hereby approved on behalf of the
     Community.
     The t e x t of the Agreement is attached to th is Regulation.
     (1) 0J No L 190, 2 3 .7 .1 9 7 5 , p.35
 ---pagebreak---                                         A rtic le 2
The President of the Council is hereby authorized to designate the person
empowered to sign the Agreement r e fe r r e d to in A r t i c l e 1 in order to bind
the Community.
                                        A rtic le 3
This Regulation s h a ll enter in to force on the day fo llo w in g i t s p u b lic a tio n
in the O f f i c i a l Journal of the European Communities.
This Regulation s h a ll be binding in i t s e n t i r e t y and d i r e c t l y a p p lic a b le
in a l l Member S ta te s .
Done at                                                      For the Council
                                                             The President
 ---pagebreak---                                                   ~ A * >
                                           AGREEMENT
  in the form of an exchange of l e t t e r s between the European Economic
    Community and the Republic of In d ia on the re sto ra tio n to the l a t t e r
  of an agreed q u a n tity of p r e f e r e n t i a l sugar
                                           LETTER No 1
  Sir,
  •The European Economic Community and the Republic of India
  have agreed on the fo llo w in g :
° The agreed q u a n tity r e fe r r e d to in A r t i c l e 3 (1 ) of the Agreement between
  the European Economic Community and the Republic of India on cane sugar
  is hereby fix e d at 10 000 metric tons with e f f e c t from 1 July 1983.
  The Community has noted In d ia 's request to have i t s o r ig in a l agreed
  q u a n tity restored in f u l l and i t w i l l take th is in to account i f and
  when a f u r t h e r r e d is t r ib u t i o n of p r e f e r e n t i a l sugar is contemplated.
  I should be obliged i f you would acknowledge receip t of th is l e t t e r and
  confirm th a t t h is l e t t e r and your rep ly c o n s titu te an Agreement between
  the Government of In d ia and the Community. v
  Please accept. S i r , the assurance of my highest consideration.
                                                                           On behalf of the Council
                                                                        of the European Communities.
                                             LETTER No 2
   Sir,
   I have the honour to acknowledge re ce ip t of your l e t t e r of today's
   date which reads as follow s :
 ---pagebreak---                                                        -4      -
                                                       y l A .
"T he E u r o p e a n Ec o n o m i c C o m m u n i t y and the R e p u b l i c of India have a g r e e d
 on the f o l l o w i n g :
 The agreed q u a n tity re fe r r e d to in A r t i c l e 3 (1 ) of the Agreement between
 the European Economic Community and the Republic of In d ia on cane
  sugar is hereby fix e d at 10 000 metric tons with e f f e c t from 1 July 1983.
  The C o m m u n i t y has n o t e d I n di a's requ est to ha ve its o r i g i n a l a g r e e d
  q u a n t i t y re s t o r e d in full and it will ta ke th is into a c c o u n t if and
  when a fu r t h e r r e d i s t r i b u t i o n of p r e f e r e n t i a l su ga r is c o n t e m p l a t e d .
  I should be obliged i f you would acknowledge re c e ip t of t h i s                               l e t t e r and
  confirm th a t t h is l e t t e r and your rep ly c o n s titu te an Agreement between
  the Government of In d ia and the Community.".
   I ha ve the h o n o u r to c o n f i r m the a g r e e m e n t of the G o v e r n m e n t of India
   with the f o r e goi ng .
    Please accept, S i r , the assurance of my highest c o n s id e ra tio n .
                                                                     For the Government of In d ia .
 ---pagebreak---                                                                            ANNEX III
                                         COUNCIL REGULATION (EEC)
on the conclusion of an Agreement in the form of an exchange of le t t e r s
between the European Economic Community and Barbados, B e liz e , the People's
Republic of the Congo, F i j i , the Cooperative Republic of Guyana, Jamaica,
the Republic of Kenya, the Democratic Republic of Madagascar, the Republic
of Malawi, M a u r it iu s , the Republic of Surinam, the Kingdom of Swaziland,
the United Republic of Tanzania, T rin idad and Tobago, the Republic of
Uganda, the Republic of Zimbabwe and the Republic of the Ivory Coast on
the accession of the l a t t e r country to Protocol 7 on ACP sugar annexed
to the Second ACP-EEC Convention
THE COUNCIL OF THE EUROPEAN COMMUNITIES,
Having regard to the Treaty e s ta b lis h in g the European Economic Community,
and in p a r t i c u l a r A r t i c l e 113 th e r e o f ,
Having regard to the proposal from the Commission,
Whereas the Jo in t D ec lara tio n annexed to Protocol 7 on ACP sugar to the
                                        (1)
Second ACP-EEC Convention                   provides th a t any request from an ACP State
C ontracting Party to the Convention not s p e c i f i c a l l y re fe rre d to in that
Protocol to p a r t i c i p a t e in i t s provisions s h a ll be examined;
Whereas the Republic of the Iv o ry Coast is an ACP S ta te Contracting Party
to the said Convention ; whereas the Ivo ry Coast has requested to p a r t i c i ­
pate in the provisions of the said Protocol;
Whereas the ACP States concerned, in a l e t t e r of 25 February 1982, have
s ig n if ie d t h e i r assent to the accession of the Ivory Coast to the said
P rotocol;
Whereas i t       is a pprop riate to approve an Agreement in the form of an ex­
 change of l e t t e r s between the European Economic Community, the States
 r e fe r r e d to in the said Protocol and the Republic of the Ivory Coast on
the accession of the l a t t e r country to the said Protocol,
 (1 ) O .J. No. L 347, 2 2 .1 2 .1 9 8 0 , p. 2
 ---pagebreak---                                                        <23
   HAS ADOPTED THIS REGULATION:
                                                   A rtic le 1
  An Agreement in the form of an exchange of le t t e r s between the European
  Economic Community and Barbados, B e l iz e , the People's Republic of the Congo,
  F i j i , the Cooperative Republic of Guyana, Jamaica, the Republic of Kenya,
  the Democratic Republic of Madagascar, the Republic of Malawi, M a u r itiu s ,
  the Republic of Surinam, the Kingdom of Swaziland, the United Republic
  of Tanzania, T rin id a d and Tobago, the Republic of Uganda, the Republic
  of Zimbabwe,· and the .Republic of the Iv o r y Coast on the accession of the
  l a t t e r country to Protocol 7 on ACP sugar
  annexed to the Second ACP-EEC Convention is hereby approved on b eh alf of the
  Community.
  The te x t of the Agreement is attached to t h i s R egulation.
                                                    A rtic le 2
   The President of the Council is hereby authorized to designate the pel—
   son empowered to sign the Agreement r e fe r r e d to in A r t i c l e 1 in order to
   bind the Community.
                                                    A rtic le 3
 \T h is Regulation s h a ll e n te r in to force on the day f o i lowing i t s p u b l i -
,fti»t;von':vVT':.ihe. :0.f.fic-.i-ailf;-J-o.ucna;i-:vOf.4'he:.,.£.uropean Communities.
   This R e g u l a t i o n e n t i r e t y . , a n d                             d i r e c t l y applicajble.
    in .a lt Member S ta te s .                 .        v-                                            c'
   Done a t . .» ..« y,                                                  For the Council
                                                                          The. President
 ---pagebreak---                                             4 %
                                          AGREEMENT
 in the form of an exchange of le t t e r s between the European Economic
 Community and Barbados, B e liz e , the People's Republic of the Congo, F i j i , the
 Cooperative Republic of Guyana, Jamaica, the Republic of Kenya, the
 Democratic Republic of Madagascar, the Republic of Malawi, M a u ritiu s, the
 Republic of Surinam, the Kingdom of Swaziland, the United Republic of
 Tanzania, T rin idad and Tobago, the Republic of Ugandar the Republic of
  Zimbabwe/ and the'R epublic of the Ivo ry Coast on the accession of the l a t t e r
 Country to Protocol 7 on ACP sugar annexed to the Second ACP-EEC Convention.
                                          L e tte r No. 1
Si r .
                                  The ACP States re fe rre d to in Protocol 7 on ACP
 sugar annexed to the Second ACP-EEC Convention,                    the Republic of the
 Iv o ry Coast and the European Economic Community have agreed on the
f o llo w in g .
The Republic of the Iv o ry Coast is hereby included in A r t i c l e 3 (1 ) of the
 said Protocol with e f f e c t from 1 July 1983 with an agreed qu an tity of
 2.  000 tonnes ( white v a lu e ) .
 I should be obliged i f you would acknowledge re ce ip t of th is l e t t e r and
 confirm th a t t h i s l e t t e r and your reply c o n s titu te an Agreement between
 the Governments of the abovementioned ACP States and the Community.
 Please accept. S i r , the assurance of my highest consideration.
                                                          On be h a l f of the Council
                                                        of the Eu r o p e a n Co mm uni ti es
                                          L e tte r No. 2
 Si r,
 I have the honour to acknowledge re ce ip t of your l e t t e r of today's date
 which reads as follow s :
 ---pagebreak---                                          *5
                              " The      ACP States re fe r r e d to in Protocol 7
     on ACP sugar annexed to the Second ACP-EEC Convention, the
     Republic of the Iv o ry Coast and the European Economic Community
    have agreed on the fo llo w in g .
     The Republic of the Iv o ry Coast is hereby included in A r t i c l e 3 (1 )
     of the said Protocol       with e f f e c t from 1 July 1983 with an agreed
     q u a n tity of 2 000 tonnes (w hite v a lu e ) .
     I should be obliged i f you would acknowledge re c e ip t of t h is l e t t e r
     and confirm th a t t h is l e t t e r and your rep ly c o n s titu te an Agreement
     between the Governments of the abovementioned ACP States and the
     Community.".
I have the honour to confirm the agreement of the Governments of the
ACP States re fe r r e d to in t h i s l e t t e r with the foregoing.
Please accept, S i r , the assurance of my highest c o n s id e ra tio n .
                                                           For the G o v e r n m e n t s