Hopes mounted for an agreement on cocoabuffer stock rules at an International Cocoa Organization,
ICCO, council meeting which opened here today, delegates said.
    Both producer and consumer ICCO members said after the
opening session that prospects for an agreement on the cocoa
market support mechanism were improving.
    "The chances are very good as of now of getting buffer stock
rules by the end of next week," Ghanaian delegate and producer
spokesman Mama Mohammed told journalists.
    Consumer spokesman Peter Baron called the tone of the
negotiations "optimistic and realistic."
    The ICCO council failed to agree on buffer stock rules when
a new International Cocoa Agreement came into force in January,
with deep differences of opinion precluding serious discussions
on the matter at that time. The existing buffer stock of about
100,000 tonnes of cocoa was frozen, with a funds balance of 250
mln dlrs.
    The ICCO made buffer stock rules negotiations a priority at
this semi-annual council meeting in order to stop the slide in
world cocoa prices.
    Consumers and producers agreed yesterday on the principles
as a basis for negotiations.
    The council broke for lunch, and reconvenes at 1500 hrs. A
working group which has been meeting since Monday will tackle
the buffer stock rules issue again at 1600 hrs, when ICCO
executive director Kobena Erbynn presents a fleshed-out version
of a draft proposal he prepared earlier this week, delegates
said.
    Mohammed said delegates will have a much clearer indication
of prospects for an accord after details of the rules are
elaborated by Erbynn, and after producers and consumers meet
separately later today to examine the scheme.
    The draft proposal included three principles: a limit to
non- member cocoa comprising the buffer stock, an offer system
for buying buffer stock cocoa, and price differentials to be
paid for various cocoas making up the buffer stock, delegates
said.
    During the morning council session, the Ivory Coast
delegation gave "an open minded statement" that it is willing to
work out a buffer stock rules solution which could come into
effect as soon as possible, Baron said.
    Ivorian Agriculture Minister Denis Bra Kanon, chairman of
the ICCO council, was now expected to arrive in London Monday
to attend the talks, Baron said. Vice chairman Sir Denis Henry
of Grenada chaired the meeting in his place.
    Soviet and East German delegates did not attend the council
session because of a conflicting International Sugar
Organization meeting today, but could arrive this afternoon,
delegates said.
 Reuter
