YEUTTER REPEATS RETALIATION THREAT ON EC OIL TAX

  U.S. Trade Representative Clayton
  Yeutter said the United States will retaliate if the European
  Community adopts a proposed tax on vegetable oils, but he did
  not say what EC products would be singled-out for reprisal.
      Speaking to the National Grain and Feed Association (NGFA)
  convention here, Yeutter said he is "cautiously optimistic" the
  controversial oils tax proposal will be rejected by the EC
  Council of Ministers.
      Yeutter said the proposed tax is a "flagrant violation of
  the spirit of GATT" because it would imperil the zero binding
  duty on U.S. exports of soybeans to Europe.
      He said the Reagan administration has yet to decide on a
  retaliation list. The administration would not reveal a
  retaliation list unless the EC approved the proposal, he said.
  

