COCOA COUNCIL CHAIRMAN SEEKS BUFFER COMPROMISE

  International Cocoa Organization, ICCO,
  Council chairman, Denis Bra Kanon, said he will attempt to
  reach a compromise on buffer stock rules for the International
  Cocoa Agreement.
      Bra Kanon called for bilateral consultations among
  producers and consumers Thursday morning to resolve outstanding
  differences on how much non-member cocoa the buffer stock can
  purchase and differentials to be fixed for different origin
  cocoa, consumer delegates told reporters.
      Bra Kanon is expected to meet with about eight delegations
  individually in attempt to iron out remaining problems.
      Producers and consumers indicated support "in principle" for
  the draft buffer stock rules package formulated over the past
  week by a small working group, consumer delegates said.
      Despite remaining differences delegates remained confident
  a buffer stock accord would be agreed to by Friday when the
  council session ends, but certain technical points need further
  clarification, the delegates said.
      Certain consumers are concerned that differentials included
  in the draft buffer stock package are out of line with market
  realities, consumer delegates said.
      Unless these are modified there are fears it would promote
  purchases of quality cocoas, such as Ghana origin, which are
  normally required by manufacturers, they said.
      Restrictions on buffer stock purchases of non-member cocoa
  might lead to a supply overhang in Malaysian cocoa, which would
  depress prices, they added.
  

