FRANCE WILL FIGHT EC FARM PROPOSALS - MINISTER
French Agricultural Minister
Francois Guillaume warned that France would flatly reject
proposed reforms of the European Community, EC, cereals, sugar
and oilseeds sectors, which he said would disrupt these
markets.
    The EC Commission's proposals to shorten the intervention
period and lower monthly premiums for cereals and increase the
financial burden on the sugar producers will also result in
lower real prices for producers, he told farmers here.
    "I give you my word that France, while it will not reject
technical adjustments or serious discussion, will simply reply
in the negative to these bad reforms," Guillaume told the annual
conference of the country's major farm union, FNSEA 
(Federation Nationale des Syndicats Dexploitants Agricoles).
    Community agricultural ministers are due to meet again
Monday to try and agree a package of reforms to curb spiralling
EC output and fix farm prices for 1987/88.
    Relations between the government and farmers have become
strained in France in recent months.
    There have been sporadic but frequent demonstrations by
farmers protesting over sharp falls in meat and pork prices and
further cutbacks in Community milk output.
    But Guillaume's warning that he would reject reorganisation
of the EC cereal and sugar markets -- France being a major
producer of both crops -- won him warm applause from the
FNSEA's farmers.
    His pledge to fight the EC proposals and push for the
complete dismantling of the system of cross border taxes
designed to smooth out currency differences known as Monetary
Compensatory Amounts, MCA's, however, are unlikely to avoid
further protests by producers.
    Farm leader Raymond Lacombe said the union planned to go
ahead with a series of major protests both in France and abroad
against the EC Commission's proposals to overhaul the farm
sector.
    "The Minister's proposals back up our determination to
organise union action in the coming weeks," he told reporters,
adding that this could also act in Guillaume's favour on a
ministerial level.
    Guillaume was head of the FNSEA for many years before being
appointed farm minister last spring.
    Lacombe refused to say whether the farmers felt that
Guillaume was doing a good job as farm minister.
    There have been certain advances on cutting production
costs, reducing fiscal costs and awarding drought aid, but
there are still areas where more could be done such as on
farmers' indebtedness, he said.
    Guillaume told the conference the government will make
available 2.4 billion francs (396 mln dlrs) to help producers
reduce milk output and to encourage older farmers to retire.
    The government has already announced financial aid for the
milk sector and it was not clear how much of the package
announced today was new aid, Lacombe said.
 Reuter
