COCOA BUFFER STOCK COMPROMISE GAINING ACCEPTANCE
A final compromise proposal on cocoa
buffer stock rules presented by International Cocoa
Organization, ICCO, council chairman Denis Bra Kanon is swiftly
gaining acceptance by consumer and producer members, delegates
said.
    "We are close, nearer than ever to accepting it, but we
still have some work to do," producer spokesman Mama Mohammed of
Ghana told Reuters after a producers' meeting.
    European Community, EC, delegates said EC consumers
accepted the package in a morning meeting and predicted "no
problems" in getting full consumer acceptance.
    Delegates on both sides are keen to come to some agreement
today, the last day of the fortnight-long council meeting, they
said.
    The compromise requires that buffer stock purchases from
non-ICCO member countries cannot exceed 15 pct of total buffer
stock purchases, delegates said. The non-member cocoa issue has
been among the most contentious in the rules negotiations.
    The 15 pct figure, up five percentage points from earlier
proposals, represents a concession to consumers, delegates
said. They have demanded a larger allowance for non-member
cocoa in the buffer stock than producers have wanted.
    Another problem area, delegates said, was the question of
price differentials for different origins of cocoa bought into
the buffer stock, by which the buffer stock manager could
fairly compare relative prices of different cocoas offered to
him.
    The compromise narrowed the range of differentials between
the origins from what previous proposals had detailed -- a move
some delegates described as "just fiddling."
    But the adjustments may prove significant enough to appease
some countries that were not satisfied with the original
proposed differentials assigned to them, delegates said.
    The compromise also stated buffer stock purchases on any
day would be limited to 40 pct each in nearby, intermediate or
forward positions, delegates said.
    If the compromise is accepted by the council, most
consumers and producers want buffer stock rules to take effect
next week, or as soon as practically possible.
    The full council is scheduled to meet around 1500 GMT to
discuss the compromise, and could agree on it then if all
parties are satisfied, they said. Consumers are due to meet
before the council.
 Reuter
