The U.S. Has dropped its insistence thatthe floor price in a new International Natural Rubber
Agreement, INRA, be revised downward under certain
circumstances, conference sources said.
    The surprise conciliatory move by the U.S. Meets one of the
producers' main concerns -- that the floor price, or "lower
indicative price," remain unchanged, they said.
    It is not clear, however, whether all consuming countries
will follow suit, as a number of them, in particular Britain,
West Germany and Belgium, appeared to have strong reservations,
the sources added.
    The group of consumers has been seeking an adjustment of
the "lower indicative price" (set at 150 Malaysian/Singapore
cents a kilo in the present pact) if the buffer stock,
currently 360,000 tonnes, rises to 450,000 tonnes.
    The sources said the question of to what extent price
adjustments should be automatic remains a problem.
    Conference chairman Manaspas Xuto of Thailand has been
holding consultations with producers and consumers throughout
the day.
    The consumers' group is now holding a separate meeting
ahead of further consultations within the "president's group"
tonight.
 Reuter
