EXCHANGE OF LETTERS CONSITUTING AN AGREEMENT BETWEEN THE by johnrr2

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									EXCHANGE OF LETTERS CONSITUTING AN AGREEMENT BETWEEN THE GOVERNMENT OF
 NEW ZEALAND AND THE GOVERNMENT OF FIJI AMENDING THE AGREEMENT ON SUGAR
                           OF 18 OCTOBER 1985

                                  (Suva, 5 June and 24 July 1986)

                               ENTRY INTO FORCE: 24 JULY 1986




No. 1

His Excellency Mr ROD GATES High Commissioner for New Zealand in Fiji

to

The Honourable Mr M QIONIBARAVI Deputy Prime Minister and Minister of Finance



                                                                      New Zealand High Commission
                                                                                            Suva

                                                                                         5 June 1986
My Dear Minister,

I have the honour to refer to the Agreement on Sugar between the Government of New Zealand and
the Government of Fiji done at Nassau on 18 October 1985, hereinafter referred to as the Agreement.
Noting recent discussions between representatives of the Fiji Sugar Marketing Company (FSMC) and
the New Zealand Sugar Company (NZSC) which established the desirability of conducting some
portion of their trade in raw sugar using Executable Order terms and which foreshadowed the
possible use of provisional pricing arrangements, and recognising the consequent need to make the
compensation provisions of the Agreement applicable to such transactions, I have the honour to
propose the following:

1. Where any raw sugar is sold by FSMC and purchased by NZSC using Executable Order terms:

        (j) any reference in the Agreement to the purchase or supply of raw sugar shall be deemed to
        include indirect purchase or supply, through a broker, by the use of Executable Order terms;

        (ii) any reference in the Agreement to the contract price for raw sugar shall be deemed to be
        a reference to the prices basis 96 degrees polarisation at which the Seller's Executable
        Orders (SEOs), relating to that sugar., are executed by FSMC plus or minus any amount by
        way of premium or discount specified in the price determination clause of the commercial
        contract between FSMC and NZSC, and/or the prices basis 96 degrees polarisation
        established by NZSC to call at the London daily price plus or minus any amount by way of
        premium or discount specified in the price determination clause of the commercial contract.
        The amount of any compensatory payment shall therefore be the difference between the
        contract price as calculated above and the agreed minimum price of US10.5 cents per pound
        stipulated in Article IV of the Agreement;

        (iii) the documentation to be furnished to the Government of New Zealand by the Government
        of Fiji under Article VI of the Agreement shall include any contract between FSMC and the
        sugar broker for sugar sold using Executable Orders, the commercial contract between FSMC
        and NZSC, evidence (for example by telex message) of each execution of SEOs, and the
        addendum to the commercial contract between FSMC and NZSC which establishes the
        contract price at which such sugar has been sold by FSMC, in order that all contract prices
        may be verified against the New York No. 11 or London No. 6 futures contract quotations or
        against the London daily price, before payment of any compensation.
2. In all cases where a provisional price for sugar is agreed between FSMC and NZSC, payment of
any compensation due in respect of such sugar shall be delayed pending receipt of documentation
from Fiji which establishes the final price for that sugar.

3. Where raw sugar is purchased by NZSC and supplied by FSMC on terms other than Executable
Orders, the Agreement shall continue to operate unchanged.

If the foregoing is acceptable to the Government of Fiji, I propose that this letter and your confirmatory
reply should constitute an agreement between our two Governments which shall enter into force on
the date of your reply.

Yours sincerely,


R. GATES,
High Commissioner.



No. 2

The Honourable Mr M. QIONIBARAVI
Deputy Prime Minister and Minister of Finance

to

His Excellency Mr ROD GATES
High Commissioner for New Zealand in Fiji

                                                                                             24 July 1986

My Dear High Commissioner

I acknowledge receipt of your letter 26/2/4 of 5 June which states as follows:

                                              [as in No. 1]

I confirm that the foregoing is acceptable to my Government and your letter and this confirmatory
reply constitute an agreement between our two Governments which shall enter into force from the
date of this reply.

Yours sincerely,


M. QIONIBARAVI
Deputy Prime Minister and Minister of Finance

								
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