REPUBLIC OF LITHUANIA                                     
                                                                                
                               LAW                                              
                                                                                
                               ON                                               
                                                                                
                              SUGAR                                             
                                                                                
                                                                                
                                                                                
     Article 1. Purpose of the Law                                              
     The purpose  of  the  present  Law  is  to  standardize  the               
relations of  sugar beet growers, processors, participants in the               
sugar market and government institutions, which are not regulated               
by other  laws of  the  Republic  of  Lithuania,  and  to  create               
preconditions for implementation of the State sugar policy.                     
                                                                                
     Article 2. Main definitions                                                
     As used in the present Law:                                                
     "sugar"  means   a  sweet   crystalline  or  liquid  product               
processed from sugar beet or semi-manufactured sugar products;                  
     "semi-manufactured sugar  product" means  a product  of  the               
unfinished  sugar  production,  which  is  obtained  upon  having               
processed sugary plants;                                                        
     "sugar market"  defines the  sphere of  exchange  comprising               
wholesale and  retail trade  of sugar and semi-manufactured sugar               
products;                                                                       
     "participants in  the sugar market" are sugar manufacturers,               
users and  traders of sugar and semi-manufactured sugar products;               
and                                                                             
     "sugar manufacturers association" is an association of sugar               
beet processors,  sugar beet  growers and  processors,  which  is               
formed on the basis of voluntariness and economic independence.                 
                                                                                
     Article 3. State Sugar Policy                                              
     The State  shall support  the development  of  the  domestic               
industry of growing and processing of sugar raw materials.                      
     The State  shall guarantee  and protect the provision of the               
country with sugar, which does not depend on the foreign market.                
                                                                                
     Article 4. Protection Measures of the Domestic Sugar                       
               Market                                                           
     While protecting  sugar manufacturers, the Government of the               
Republic of Lithuania or institutions authorized by it shall:                   
     1) study market conditions and prices, and publicly announce               
this information;                                                               
     2)  develop   projects  concerning   the  balance  of  sugar               
producing,  importation   and  exportation,  and  their  economic               
substantiation;                                                                 
                                                                                
     3) carry  out the  state customs  duties policy on sugar and               
semi-manufactured sugar products;                                               
     4) approve  threshold sugar prices taking into consideration               
the changes of retail sugar prices; and                                         
     5) establish  import quotas  for sugar and semi-manufactured               
sugar products.                                                                 
     The processing industry shall be prohibited from importation               
of semi-manufactured  sugar products  into the  country until the               
time it  purchased sugar  beets according  to quotas set forth by               
the Government  of the Republic of Lithuania. In cases of natural               
calamities and  poor crop  importation of semi-manufactured sugar               
products shall  be regulated by the Government of the Republic of               
Lithuania.                                                                      
                                                                                
     Article 5. Measures for Regulating of the Domestic                         
               Sugar Market                                                     
     The following  measures for  regulating of  the sugar market               
shall be applied in the Republic of Lithuania:                                  
     1)  local  quotas  and  prices  of  purchase  of  sugar  raw               
materials;                                                                      
     2) minimal  price of  the production  which is  manufactured               
from the raw materials purchased according to the quotas;                       
     3) wholesale  sugar trade  - only in factories and commodity               
exchange;                                                                       
     4) State quality control of sugar and its certification; and               
     5) recovery  of damages  inflicted due  to the illegal sugar               
trade in favor of domestic sugar manufacturers.                                 
     The Government  of the Republic of Lithuania shall establish               
the procedure  for applying  of these measures and conditions. It               
may apply other control measures as well.                                       
                                                                                
     Article 6. Centralization of the Sugar Production                          
     Upon  founding   a  sugar   manufacturers  association,  the               
sanctions of the Law of the Republic of Lithuania on Competition,               
which are  established for dominant market entities, shall not be               
applied.                                                                        
     A government institution authorized by the Government of the               
Republic of Lithuania shall coordinate founding of the Lithuanian               
sugar manufacturers association and its activities.                             
                                                                                
     Article 7. Centralization and Utilization of Resources                     
     The  Sugar   Fund  shall   be  founded   for  the  technical               
reorganization of  growing and processing of sugar raw materials.               
The  Sugar   Fund  shall   be  founded  as  a  non-profit-seeking               
institution.                                                                    
     The capital of the Sugar Fund shall consist of contributions               
of sugar  factories; resources  obtained from  the sale  of sugar               
import licenses;  payment of  duties imposed  upon the  import of               
semi-manufactured  sugar   products;  State   resources  and  the               
resources of Lithuanian and foreign legal and natural persons; as               
well   as   loans   and   other   resources,   appropriated   for               
implementation of purpose-oriented sugar programmes.                            
                                                                                
     Article 8. Crediting of Purchase of Sugar Beets                            
     Sugar beet processors shall be granted preferential seasonal               
credits, which  allow to  pay for  not less  than 40  per cent of               
sugar beets purchased according to quotas.                                      
                                                                                
     I promulgate  this Law  passed by the Seimas of the Republic               
of Lithuania.                                                                   
                                                                                
                                                                                
Algirdas Brazauskas                                                             
President of the Republic                                                       
                                                                                
Vilnius                                                                         
27 April 1995                                                                   
No.I-867