U.S. REAFFIRMS OPPOSITION TO EC OILS TAX PLAN

  A meeting among government agencies
  today reaffirmed the strong opposition of the United States to
  a proposed new tax on vegetable oils and fats in the European
  Community, U.S. trade officials said.
      Representatives of the major government agencies agreed at
  a trade policy review group meeting, which includes officials
  of the deputy secretary rank, to continue diplomatic pressure
  on EC member states.
      "We (all agencies) are together on this," said one U.S.
  trade official.
      One source said the U.S. would continue to make clear to
  member states and to the EC commission that if Brussels
  proceeds with the vegetable oils tax "there will be a great
  cost."
      U.S. officials said no formal list of European products on
  which the U.S. might retaliate, has yet been drawn up.
      "I don't think we're at that point yet," said one trade
  official, adding that the EC has only begun deliberations on
  its farm price package.
      Suzanne Early, assistant trade representative, told Reuters
  the interagency meeting was to discuss U.S. strategy on the
  vegetable oils issue. Asked about retaliation, she said
  "sometimes its better not to be specific."
      U.S. trade representative Clayton Yeutter Monday warned
  another major transatlantic trade row will develop if the EC
  proceeds with the vegetable oils tax.
  

