External trade agreements
 The prices which are paid to growers for export crops are of course a reflection of the
world market price. The subject of the future of world market prices is outside the scope
of this study, and in particular we would not be in a position to make an assessment of the
effect that Britain's possible entry into the Common Market would have on the return for
the various commodities. We feel it is relevant, however, that we refer to the price ar-
rangements which apply to sugar, copra and rice, and to some of the buying arrangements
for other products.

 Although as far back as 1929 a commission suggested to the United Kingdom Govern-
ment that colonial sugar should be purchased at a fixed price, no measures were taken un-
til 1932 when the United Kingdom introduced Colonial Sugar preference certificates by which
all sugar exported to the United Kingdom received an extra 1 per ton over the world price.
This price was not sufficient to alleviate a condition of bankruptcy and severe unemploy-
ment which existed in West Indian Colonies. During the war a guaranteed market was of-
fered but shortages of equipment made it difficult for producers to improve their produc-
tive capacity or increase their efficiency. Between 1946 and 1949 the United Kingdom Gov-
ernment guaranteed a market for West Indies sugar and these guaranteed marketing ar-
rangements were extended to 1952. World prices were considerably higher on the average,
however, when the British Commonwealth Sugar Agreement came into being. The agree-
ment was initially extended to 1959, and has now been extended to 1968.

 Under this agreement all Commonwealth countries agreed to an export quota, the over-
all agreement quota. Of this total, two-thirds was to be purchased by the United Kingdom
at a price which would be negotiated annually and which would be based on costs of produc-
tion rather than on world prices. The West Indies share of the overall quota is 900,000
tons: only 640,000 tons was, however, the negotiated price quota (revised to 672,000 tons
in 1960). The difference between the overall agreement quota and the negotiated price
quota is sold at the world price plus the advantage of preferential tariffs applicable to all
Commonwealth countries. Any exports over and above the 900,000 tons can be sold in
world markets at the world price. In addition, however, the Commonwealth producers
have a quota of production under the International Sugar Agreement.

 Since 1954 total production has exceeded the overall agreement quota for the West In-
dies, and the quantity of sugar sold in unguaranteed markets increased by 1960 to 157,148
tons. The West Indies has from time to time obtained the benefit of short-falls by other
Commonwealth producers. Also, since the United States embargo on Cuban sugar, part
of the West Indies surplus has been disposed of to the United States at premium prices.
The quota premiums will be reduced by 1964, but it is expected that a more certain U.S.
market will exist so long as the present political situation between Cuba and the United
States persists.

 Thus, in spite of the growth of non quota production in the area, prices, when averaged
over the whole of the exports, have only been influenced marginally.

 Although we have predicted a fairly substantial increase in production up to 1968, we
do not consider for the reason given above that the average price will be seriously affec-
ted although a decline of up to 10% might be expected. The events after 1968 are uncertain,