European Community (EC) agricultureministers gave widely diverging reactions to EC executive
Commission proposals for a radical reduction of guaranteed
prices for the EC's 12 mln farmers.
    The plans, which could cut the price received by farmers by
over 10 pct in many cases, were dismissed by West German
minister Ignaz Kiechle as in part unacceptable and in part not
even a basis for negotiation, diplomatic sources said.
    At the other end of the scale, Britain's Michael Jopling
said for some products they did not go far enough to reduce the
massive spending on the EC's farm policy, the major factor
which has brought the Community close to a budget crisis.
    Ministers discussed the Commission's 1987-88 farm price
proposals for the first time and the sources said negotiations
could last several months yet.
    Belgian minister Paul de Keersmaeker, who is chairing the
meeting, told his colleagues he would not even attempt to reach
agreement at the current meeting which is due to end Tuesday
although prices are supposed to be agreed by April 1.
    The disagreement among ministers reflects deep divisions
among member states about the future of the EC's farm policy
which swallows about two-thirds of the annual 36 billion
European Currency Unit (41 billion dollar) budget.
    Kiechle, backed generally by his French, Italian and
several other colleagues, believes sacrifices by traditional
family farmers must be kept to a minimum in order to maintain
viable rural communities in Europe.
    Jopling, with some support from the Netherlands and
Denmark, on the whole backs proposals by EC farm commissioner
Frans Andriessen to cut guaranteed prices and reduce the
opportunities for sales of surplus products into EC stores.
    He believes the system which allows such sales nominally as
a last resort has become abused, resulting in huge stocks and
damaging trade tensions with other major world food exporters.
    Jopling told journalists it was now costing the EC 2,000
Ecus a hectare (920 dlrs an acre) to subsidise cotton
production and double that figure for the growing of certain
types of tobacco.
    Opening yesterday's debate, Andriessen accused officials of
some EC states of ignoring realities. "They give the impression
of living on another planet where there are no surpluses, no
budgetary deficits and no budgetary discipline for farm
spending," he said.
    One Andriessen scheme for closing the budget gap could
already be doomed, diplomats said.
    He wants to raise two billion Ecus (2.28 billion dlrs)
through a tax on EC produced and imported oilseeds which has
already raised hackles in Washington because of fears of the
impact on U.S. soybean exports.
    Jopling said earlier enough EC states appear opposed to
this scheme to block its adoption provided they all stand firm
in the lengthy negotiations ahead on the Commission proposals.
 Reuter
