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.
  

