ICCO GROUP LOOKS AT COCOA BUFFER STOCK RULE PLAN
The International Cocoa Organization,
ICCO, buffer stock working group began examining a draft
proposal for buffer stock rules this afternoon, delegates said.
    The plan, presented by ICCO Executive Director Kobena
Erbynn, represented a compromise between producer, European
Community, EC, and other consumer views on how the buffer stock
should operate, they said.
    The proposal involved three key principles. First, the
buffer stock manager would be open to offers for cocoa rather
than using fixed posted prices as previously, delegates said.
    Under an offer system, the buffer stock manager would be
free to choose cocoas of varying prices, they said.
    The second provision was that non-ICCO member cocoa could
comprise a maximum 10 pct of the buffer stock, while the third
laid out a pricing system under which the buffer stock manager
would pay differentials for different grades of cocoa, to be
set by a formula, the delegates said.
    After the plan was presented, working group delegates met
briefly in smaller groups of producers, EC consumers and all
consumers to look at the proposal. Producers gave no reaction
to the scheme and will respond to it when the working group
meets tomorrow at 1000 GMT, producer delegates said.
    Consumer members accepted the proposal as a good base to
work from, one consumer delegate said.
    Delegates said the proposal was only a starting point for
negotiations on buffer stock rules and subject to change.
 Reuter
