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Talks on to break deadlock

Rubber producers threaten to abort INRA pact
KUALA LUMPUR. May 21 Natural rubber producers Wednesday threatened to abort a price stabilisation pad for the commodity unless con sumer nations agree to negotl ale a new agreement, reports AFT
Lim Keng Yalk. Malaysia's Minister for Primary Industries, said producer nations would revert to their own 1975 agreement to firm prices, 'fhe producers pact docs not provide for consumer participation.
"Producers have suffered low prices for too long. We will not tolerate consumers holding us by the neck." 14m told reporters.
Malaysia spokesman for the six producer members of the International kjaturai Rubber Organisations (INRO) which oversees the Internationa) Natural Rubber
Agreement (INRA).
The INRO's six producers and 20 consumer nations and the European community are now holding talks here to break a deadlock over when to start negotiation on a third rubber agreement or INRA III to replace the current second agreement with express In December 1993.
Although the current agreement provides for a two-year extension after December 1993. producer nations want negotiations started on a successful pad
Lim said that consumers were using delay tactics so that they could continue to benefit from current weak rubber prices resulting from dwindling demand. ■
Lim said INRA II had to be renegotiated to reassess the intervention levels that serve as a guide for the INRO Buffer
Stock Managers buying and selling operations to stabilise prices.
"Producers generally feel that the Buffer Stock Manager has been ineffective In propping up falling prices although he has been very efficient when It comes to selling to bring prices down." he said
urn said that producer na ' Hons want the price Inlerven-Uon levels under the INRA II lowered to allow the Buffer Stock Manager to enter the market earlier to bolster prices.
"Our official stand Is. we want INRA but not at any cost and we will not give in to qpn sumers to the detriment of producers," 14m said
Lim said if both producers and consumers failed to achieve consensus at the INRO talks here, producers would activate "there fallback position".