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CRO VICE-PREMIER SPEAKS WITH EC OFFICIALS ABOUT SUGAR AFFAIR

ZAGREB, July 12 (Hina) - Outgoing Vice-Premier Slavko Linic on Friday spoke in Zagreb with European Commission officials about exporting sugar from Croatia to the European Union, the government reported.
ZAGREB, July 12 (Hina) - Outgoing Vice-Premier Slavko Linic on Friday spoke in Zagreb with European Commission officials about exporting sugar from Croatia to the European Union, the government reported. #L# The 'Jutarnji list' daily of Friday reported that three EU countries - Italy, Germany, and Austria - had introduced special levies of up to 10,000 euros per truck for sugar exporters from Croatia because the EC suspected the origin of the sugar. Speaking to journalists after a meeting with Foreign Minister Tonino Picula, the EC's director-general for foreign affairs, Guy Legras, confirmed that he had discussed the sugar problem with Vice-Premier Slavko Linic, adding ways had been found to solve the problem. A government statement quoted Linic as saying the government was investing considerable efforts to combat illegal trade and grey economy. A special investigation was conducted in the sugar business, covering 2001 and the first half of this year, and a report was sent to the EU on July 9 specifying that the sugar inspected was definitely produced in Croatia, Linic said. It is also evident from the report that the price of sugar sold abroad is higher than sugar prices on the local market and that the state is not financing sugar exports. The sudden growth in sugar production and exports is due to a decrease in customs before the signing of the Stabilisation and Association Agreement and the successful consolidation of sugar plants, Linic said, adding that it was possible to come to an agreement with the EC on joint control of sugar exports on border crossings. Legras added that the EC would not have any problems with sugar from Croatia as long as its origin could be proven, and that it would inspect the report submitted by Croatia. (hina) sp rml

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