EC SUGAR TENDER SAID TO MARK NO CHANGE IN POLICY

  The maximum rebate granted at
  yesterday's European Community (EC) sugar tender marked no
  change in policy towards producers' complaints that they are
  losing money on exports outside the EC, EC commission sources
  said.
      They said this was despite the fact that the commission
  accepted over 785,000 tonnes of sugar into intervention
  yesterday from traders protesting that rebates are being set
  too low.
      The maximum rebate at yesterday's tender was 46.864 Ecus
  per 100 kilos, up from 45.678 Ecus the previous week.
      London traders said yesterday the rebate was the largest
  ever granted. The commission sources said today the increase
  was entirely explained by world market conditions. The amount
  by which the rebate fell short of what producers claim is
  needed to obtain an equivalent price to that for sales into
  intervention remained at 0.87 Ecus per 100 kilos, they said.
      Operators offered a total of 854,000 tonnes of sugar into
  intervention last month to protest at rebates which they said
  were too low. The sources said about 706,470 tonnes of French
  sugar and 79,000 tonnes of German sugar had been accepted, the
  remainder being rejected as of too low quality.
      The sources noted the operators could withdraw their offers
  in the five week period between the acceptance of the sugar and
  payment for it.
      They said they saw no sign of planned withdrawals as yet,
  adding that they would expect operators to wait another week or
  two to review commission policy before making up their minds.
      The sources said the commission felt entitled to offer
  rebates at slightly below the level theoretically justifiable
  in the light of its 1987/88 farm price package proposal to
  reduce guaranteed prices for sugar by two pct from the start of
  the new season in July.
  

