FRANCE WILL FIGHT EC FARM PROPOSALS - MINISTER

  French Agricultural Minister
  Francois Guillaume warned that France would flatly reject
  proposed reforms of the European Community, EC, cereals, sugar
  and oilseeds sectors, which he said would disrupt these
  markets.
      The EC Commission's proposals to shorten the intervention
  period and lower monthly premiums for cereals and increase the
  financial burden on the sugar producers will also result in
  lower real prices for producers, he told farmers here.
      "I give you my word that France, while it will not reject
  technical adjustments or serious discussion, will simply reply
  in the negative to these bad reforms," Guillaume told the annual
  conference of the country's major farm union, FNSEA 
  (Federation Nationale des Syndicats Dexploitants Agricoles).
      Community agricultural ministers are due to meet again
  Monday to try and agree a package of reforms to curb spiralling
  EC output and fix farm prices for 1987/88.
      Relations between the government and farmers have become
  strained in France in recent months.
      There have been sporadic but frequent demonstrations by
  farmers protesting over sharp falls in meat and pork prices and
  further cutbacks in Community milk output.
      But Guillaume's warning that he would reject reorganisation
  of the EC cereal and sugar markets -- France being a major
  producer of both crops -- won him warm applause from the
  FNSEA's farmers.
      His pledge to fight the EC proposals and push for the
  complete dismantling of the system of cross border taxes
  designed to smooth out currency differences known as Monetary
  Compensatory Amounts, MCA's, however, are unlikely to avoid
  further protests by producers.
      Farm leader Raymond Lacombe said the union planned to go
  ahead with a series of major protests both in France and abroad
  against the EC Commission's proposals to overhaul the farm
  sector.
      "The Minister's proposals back up our determination to
  organise union action in the coming weeks," he told reporters,
  adding that this could also act in Guillaume's favour on a
  ministerial level.
      Guillaume was head of the FNSEA for many years before being
  appointed farm minister last spring.
      Lacombe refused to say whether the farmers felt that
  Guillaume was doing a good job as farm minister.
      There have been certain advances on cutting production
  costs, reducing fiscal costs and awarding drought aid, but
  there are still areas where more could be done such as on
  farmers' indebtedness, he said.
      Guillaume told the conference the government will make
  available 2.4 billion francs (396 mln dlrs) to help producers
  reduce milk output and to encourage older farmers to retire.
      The government has already announced financial aid for the
  milk sector and it was not clear how much of the package
  announced today was new aid, Lacombe said.
  

