Skip to main content

South African Sugar (Trading Arrangements)

Volume 649: debated on Wednesday 15 November 1961

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Minister of Agriculture, Fisheries and Food what arrangements have been made for the trade in sugar between South Africa and the United Kingdom after the end of 1961.

I agreed with the South African Minister of Economic Affairs, Dr. Diederichs, on 22nd September that there should be further discussions on arrangements for the trade in sugar between our two countries. These have been held during the past three weeks between my Department and the South African Sugar Association, and have led to agreement in principle on the following arrangements for the trade in sugar between South Africa and the United Kingdom after the end of 1961, when the South African Sugar Assocation's rights and obligations under the Commonwealth Sugar Agreement come to an end.The Ministry of Agriculture will purchase 150,000 long tons a year of raw sugar from the South African Sugar Association at a price of £35 15s. 0d. a ton (basis 96° f.a.s. Durban). Exports of sugar to the United Kingdom from South Africa in excess of this quantity will be made only in agreement with the Ministry of Agriculture, and will be sold to buyers in the United Kingdom at the ordinary market price.These arrangements will last for the five years 1962–1966 inclusive. The provisions for the years 1964–1966 will be subject to review, and to such modifications as may be necessary in the event of any changes in the international obligations affecting the trade in sugar of either the Government of the United Kingdom or the Government of the Republic of South Africa.Discussions on the details of this Agreement will continue. But in view of the shortness of time for making arrangements for shipments in 1962, plans are being made immediately for the purchase of sugar by the Ministry for 1962.The opportunity has also been taken to review with the Government of South Africa and the South African Sugar Association the arrangements for the marketing in South Africa of sugar produced in Swaziland. The South African Government and the Association have confirmed that the existing marketing arrangements will continue unchanged. It has also been agreed that in the 1964–65 production season and subsequent years the present figure for Swaziland sugar production of 80,000 short tons should be replaced by a limit of 8½ per cent. of the total sales of South African and Swaziland sugar, thus giving the Swaziland sugar industry an opportunity of sharing in any increase in the South African markets for sugar.