Cuban Sugar Deal May Affect World Market

Press, Volume CIII, Issue 30348, 25 January 1964, Page 15

Cuban Sugar Deal May Affect World Market

(Special Correspondent N.Z.P.A.)

LONDON, January 24. The effect on international sugar prices of the new Soviet-Cuban longterm trade agreement, with its guaranteed prices for Cuban sugar, is causing guessing in some market quarters. Since 1982, Cuba has no longer been able to meet its obligations, under a fouryear agreement signed in 1961, in Communist countries —especially in the Soviet Union, says “The Times.” It is known to have secured certain waivers for some of these obligations both in 1962 and 1963. The reason for the latest agreement, however, is not hard to find. Sugar supplies in Eastern Europe in the last two years have become tight and maximum imports from Cuba have, accordingly, become an issue of tangible importance. Eastern European supplies from home produc-

tion have contracted considerably since 1960, while consumption has increased sharply. "Mr Khrushchev’s references to price stability and to freeing Cuba from the fluctuations of the world market suggest that the Soviet Government has made concessions to Cuba on sugar prices,” says “The Times ” “What is much more important, however, as far as trading conditions in the free international sugar market are concerned, is the amount of sugar Cuba has now promised to supply to the Soviet Union this year. "Cuban stocks are virtually exhausted. As a result these supplies will certainly remain far below the level agreed under the four-year agreement of 1961. Whether Cuba will now have to reduce its sales to Western markets still further remains to be seen,” says "The Times.”