RUBBER TALKS CHAIRMAN CITES SLIGHT PROGRESS
  There has been slight progress towards
  reaching a rubber pact, the chairman of a United Nations
  conference on a new International Natural Rubber Agreeement,
  INRA, Manaspas Xuto of Thailand, said.
      "There has been some slight progress but it is not the end
  of the road yet," he said.
      The conference, which began Monday, is seen as the last
  effort to adopt an accord to replace the current one which
  expires in October. Some 40 producing and consuming countries
  are taking part in the two-week meeting.
      Xuto said if the key outstanding issues are not resolved by
  tomorrow he would hold weekend meetings.
      At the beginning of the conference, the fourth such meeting
  in nearly two years, Xuto said it was imperative to settle
  those issues this week so that technical drafting work can be
  done next week.
      Conference sources said it is highly unlikely that
  producers will accept a pact that will provide for any possible
  downward adjustment of the floor price, as proposed by
  consumers under certain circumstances.
      The sources said this means that any possible adjustment
  would centre on the reference price, and the "may buy" (or "may
  sell") and "must buy" (or "must sell") levels without changing the
  "lower indicative price" (or floor price) of 150
  Malaysian/Singapore cents a kilo in the present pact.
      The present five-day average of the indicator price is
  around 192 Malaysian/Singapore cents.
      Consumers are seeking an adjustment of the reference price,
  set in the current accord at 201.66 Malaysian/Singapore cents a
  kilo, and of the "lower indicative price" if the buffer stock,
  currently 360,000 tonnes, rises to 450,000 tonnes.
      Consumers want price reviews at 12-month intervals instead
  of the 18 at present, and the price revision mechanism to
  respond automatically to market trends.
      At present, if the market price has been above or below the
  reference price for six months, the reference price is revised
  by five pct or by an amount decided by the International
  Natural Rubber Organisation council.
      Consumers say that, in these circumstances, the adjustment
  be automatic at five pct or more.
      Producers have resisted reducing the role of the council in
  the price adjustment procedure and have expressed concern that
  changes proposed by consumers would weaken the present pact.