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PRIME MINISTER RACAN COMMENTS ON SUGAR EXPORT AFFAIR

ZAGREB, Aug 27 (Hina) - Croatian Prime Minister Ivica Racan said on Tuesday he would insist on an investigation against and the punishment of persons from the Osijek Sugar Refinery who were responsible for exporting sugar mixed with cane sugar to Greece.
ZAGREB, Aug 27 (Hina) - Croatian Prime Minister Ivica Racan said on Tuesday he would insist on an investigation against and the punishment of persons from the Osijek Sugar Refinery who were responsible for exporting sugar mixed with cane sugar to Greece. #L# The export of such sugar constitutes a violation of the Stabilisation and Association Agreement between Croatia and the European Union, Racan said. Problems with Croatian sugar exports started in mid-July after some EU countries introduced deposits for Croatian sugar exports due to suspicion that the sugar was not of exclusively domestic origin. The deposits were introduced by Germany, Austria, Greece, and Italy and the problem was discussed by a Croatian delegation and European Commission officials in mid-July. Racan told reporters today that Croatia completely accepted responsibility for respecting its commitments. Those who are obstructing the implementation of contractual obligations must be punished, he said. He added that sugar with cane sugar added were exported to Greece and there was no information on it having been exported to other countries. Racan expressed hope that the latest sugar affair would not affect negotiations with the countries which had introduced deposits for Croatian sugar exports. (hina) rml sb

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