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AGREEMENT

IN THE FORM OF AN EXCHANGE OF LETTERS BETWEEN THE EUROPEAN ECONOMIC COMMUNITY AND BARBADOS , 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 AND THE REPUBLIC OF UGANDA , ON THE GUARANTEED PRICES FOR CANE SUGAR FOR 1980/81

LETTER NO 1

BRUSSELS ,

SIR ,

1 . THE REPRESENTATIVES OF THE ACP STATES REFERRED TO IN PROTOCOL 3 ON ACP SUGAR ANNEXED TO THE ACP-EEC CONVENTION OF LOME , OF THE REPUBLIC OF SURINAM , AND OF THE COMMISSION , ON BEHALF OF THE EUROPEAN ECONOMIC COMMUNITY , HAVE AGREED WITHIN THE FRAMEWORK OF THE NEGOTIATIONS PROVIDED FOR IN ARTICLE 5 ( 4 ) OF THE SAID PROTOCOL , ON THE FOLLOWING :

- FOR THE PERIOD 1 JULY 1980 TO 30 JUNE 1981 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 , 35,89 ECU PER 100 KILOGRAMS ;

( B ) FOR WHITE SUGAR , 44,48 ECU PER 100 KILOGRAMS .

THESE PRICES , WHICH REPRESENT AN INCREASE OF 5,16 % OVER THOSE OF THE PRECEDING YEAR , SHALL REFER TO SUGAR OF STANDARD QUALITY AS DEFINED IN COMMUNITY LEGISLATION , UNPACKED , CIF EUROPEAN PORTS OF THE COMMUNITY .

2 . ALTHOUGH RETROACTIVITY IS NOT PROVIDED FOR IN RESPECT OF THE 1980/81 PRICES , IT IS AGREED THAT THIS YEAR'S DECISION DOES NOT PREJUDICE THE POSITION OF THE ACP STATES IN RELATION TO RETROACTIVITY IN ANY FUTURE NEGOTIATION IN ACCORDANCE WITH ARTICLE 4 ( 3 ) OF PROTOCOL 3 ANNEXED TO THE ACP-EEC CONVENTION OF LOME .

3 . IT WAS NOTED THAT DESPITE THE CONCERN EXPRESSED BY THE ACP STATES THE PREVIOUS YEAR OVER THE BURDEN OF FREIGHT CHARGES THE COUNCIL OF MINISTERS OF THE COMMUNITY HAD NOT AUTHORIZED THE INCLUSION OF ANY FACTOR IN RESPECT OF FREIGHT CHARGES IN THE DETERMINATION OF THE GUARANTEED PRICES FOR THE DELIVERY PERIOD 1980/81 . THE ACP STATES EXPLAINED THAT THIS COST HAD RISEN BY ALMOST 60 % SINCE LAST YEAR , THUS CONSTITUTING AN IMPORTANT FACTOR , AND REQUESTED THAT THE COMMUNITY SHOULD GIVE SERIOUS CONSIDERATION TO THE POSSIBILITY OF ALLEVIATING THE EFFECT OF THESE CHARGES ON THE ACP STATES . THE COMMUNITY , WHILE REITERATING THAT ARTICLE 5 ( 4 ) SET THE GUARANTEED PRICE AT THE CIF STAGE , RECOGNIZED THE ACP STATES' CONCERN AT THE INCREASING LEVELS OF FREIGHT RATES AND UNDERTOOK TO RECONSIDER THE ACP REQUEST .

I SHOULD BE OBLIGED IF YOU WOULD ACKNOWLEDGE RECEIPT OF THIS LETTER AND CONFIRM THAT THIS LETTER AND YOUR REPLY CONSTITUTE AN AGREEMENT BETWEEN THE GOVERNMENTS OF THE ABOVEMENTIONED ACP STATES AND THE COMMUNITY .

PLEASE ACCEPT , SIR , THE ASSURANCE OF MY HIGHEST CONSIDERATION .

FOR THE COUNCIL OF THE EUROPEAN COMMUNITIES

LETTER NO 2

BRUSSELS ,

SIR ,

I HAVE THE HONOUR TO ACKNOWLEDGE RECEIPT OF YOUR LETTER OF TODAY WHICH READS AS FOLLOWS :

" 1 . THE REPRESENTATIVES OF THE ACP STATES REFERRED TO IN PROTOCOL 3 ON ACP SUGAR ANNEXED TO THE ACP-EEC CONVENTION OF LOME , OF THE REPUBLIC OF SURINAM , AND OF THE COMMISSION , ON BEHALF OF THE EUROPEAN ECONOMIC COMMUNITY , HAVE AGREED WITHIN THE FRAMEWORK OF THE NEGOTIATIONS PROVIDED FOR IN ARTICLE 5 ( 4 ) OF THE SAID PROTOCOL , ON THE FOLLOWING :

- FOR THE PERIOD 1 JULY 1980 TO 30 JUNE 1981 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 , 35,89 ECU PER 100 KILOGRAMS ;

( B ) FOR WHITE SUGAR , 44,48 ECU PER 100 KILOGRAMS .

THESE PRICES , WHICH REPRESENT AN INCREASE OF 5,16 % OVER THOSE OF THE PRECEDING YEAR , SHALL REFER TO SUGAR OF STANDARD QUALITY AS DEFINED IN COMMUNITY LEGISLATION , UNPACKED , CIF EUROPEAN PORTS OF THE COMMUNITY .

2 . ALTHOUGH RETROACTIVITY IS NOT PROVIDED FOR IN RESPECT OF THE 1980/81 PRICES , IT IS AGREED THAT THIS YEAR'S DECISION DOES NOT PREJUDICE THE POSITION OF THE ACP STATES IN RELATION TO RETROACTIVITY IN ANY FUTURE NEGOTIATION IN ACCORDANCE WITH ARTICLE 4 ( 3 ) OF PROTOCOL 3 ANNEXED TO THE ACP-EEC CONVENTION OF LOME .

3 . IT WAS NOTED THAT DESPITE THE CONCERN EXPRESSED BY THE ACP STATES THE PREVIOUS YEAR OVER THE BURDEN OF FREIGHT CHARGES THE COUNCIL OF MINISTERS OF THE COMMUNITY HAD NOT AUTHORIZED THE INCLUSION OF ANY FACTOR IN RESPECT OF FREIGHT CHARGES IN THE DETERMINATION OF THE GUARANTEED PRICES FOR THE DELIVERY PERIOD 1980/81 . THE ACP STATES EXPLAINED THAT THIS COST HAD RISEN BY ALMOST 60 % SINCE LAST YEAR , THUS CONSTITUTING AN IMPORTANT FACTOR , AND REQUESTED THAT THE COMMUNITY SHOULD GIVE SERIOUS CONSIDERATION TO THE POSSIBILITY OF ALLEVIATING THE EFFECT OF THESE CHARGES ON THE ACP STATES . THE COMMUNITY , WHILE REITERATING THAT ARTICLE 5 ( 4 ) SET THE GUARANTEED PRICE AT THE CIF STAGE , RECOGNIZED THE ACP STATES' CONCERN AT THE INCREASING LEVELS OF FREIGHT RATES AND UNDERTOOK TO RECONSIDER THE ACP REQUEST .

I SHOULD BE OBLIGED IF YOU WOULD ACKNOWLEDGE RECEIPT OF THIS LETTER AND CONFIRM THAT THIS LETTER AND YOUR REPLY CONSTITUTE 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 REFERRED TO IN THIS LETTER WITH THE FOREGOING .

PLEASE ACCEPT , SIR , THE ASSURANCE OF MY HIGHEST CONSIDERATION .

FOR THE GOVERNMENTS