ICCO GROUP LOOKS AT COCOA BUFFER STOCK RULE PLAN

  The International Cocoa Organization,
  ICCO, buffer stock working group began examining a draft
  proposal for buffer stock rules this afternoon, delegates said.
      The plan, presented by ICCO Executive Director Kobena
  Erbynn, represented a compromise between producer, European
  Community, EC, and other consumer views on how the buffer stock
  should operate, they said.
      The proposal involved three key principles. First, the
  buffer stock manager would be open to offers for cocoa rather
  than using fixed posted prices as previously, delegates said.
      Under an offer system, the buffer stock manager would be
  free to choose cocoas of varying prices, they said.
      The second provision was that non-ICCO member cocoa could
  comprise a maximum 10 pct of the buffer stock, while the third
  laid out a pricing system under which the buffer stock manager
  would pay differentials for different grades of cocoa, to be
  set by a formula, the delegates said.
      After the plan was presented, working group delegates met
  briefly in smaller groups of producers, EC consumers and all
  consumers to look at the proposal. Producers gave no reaction
  to the scheme and will respond to it when the working group
  meets tomorrow at 1000 GMT, producer delegates said.
      Consumer members accepted the proposal as a good base to
  work from, one consumer delegate said.
      Delegates said the proposal was only a starting point for
  negotiations on buffer stock rules and subject to change.
  

