Malaysia threatens to break rubber pact<\/p>\n
KUALA LUMPUR (AFP): Malaysia warned yesterday it would refuse
\nto ratify a new United Nations-brokered rubber price pact unless
\nIndonesia withdrew its bid for the top post of the global rubber
\ngroup.<\/p>\n
Primary Industries Minister Lim Keng Yaik accused Indonesia of
\nseeking to sabotage Malaysia's bid for the executive directorship
\nof the Kuala Lumpur-based International Natural Rubber
\nOrganization (INRO).<\/p>\n
\"We will take this up with (Indonesian President) Soeharto
\nthrough our prime minister when he visits our country,\" Lim told
\na news conference, referring to Soeharto's impending visit to
\nKuala Lumpur.<\/p>\n
Indonesia has put up a candidate for the post, although the
\nidentity has yet to be revealed.<\/p>\n
The post, first held by Indonesia at the start of the INRA I
\n16 years ago, is currently held by Thailand's Pong Sono.<\/p>\n
\"It is almost amounting to sabotaging our bid, so I have to
\nseriously consider whether to join INRA or not,\" Lim said,
\nalluding to the third International Natural Rubber Agreement
\n(INRA III).<\/p>\n
INRA III can only replace the INRA II, which expired last
\nDecember, if it can garner 75 percent support from both INRO's
\nexporting and importing members by Jan. 1, 1997.<\/p>\n
INRO, which groups six producers led by Indonesia, Thailand
\nand Malaysia and 21 consuming nations headed by the United
\nStates, European Union and Japan, administers INRA through a
\nbuffer stock mechanism to stabilize rubber prices.<\/p>\n
So far only six INRO members have ratified the pact, namely
\nJapan, Spain and Greece representing the consumers and Thailand,
\nSri Lanka and Nigeria from the producers' side, officials said.<\/p>\n
Lim said Malaysia was to be given the executive directorship
\nof INRO by rotation among the key producers and slammed Indonesia
\nfor attempting to deny Kuala Lumpur its right.<\/p>\n
\"It's a matter of principle. We feel very strongly about
\nthis.. If they (Indonesia) don't withdraw, we'll just forget
\nabout it,\" he warned.<\/p>\n
Although Malaysia was a founding member, Lim said it could do
\nwithout INRO.<\/p>\n
Indonesia had last November declared that it was Jakarta's
\nturn again under a \"gentleman's agreement\" among INRO's key
\nproducer members.<\/p>\n
\"It is a gentleman's agreement that Indonesia gets the post
\nagain after Thailand. Malaysia gets the headquarters,\" an
\nIndonesian official had said.<\/p>\n
While the INRO council has declared an interim period pending
\nthe ratification of INRA III, officials had warned that INRO
\ncould go into liquidation if either Indonesia or Malaysia opted
\nout of the agreement.<\/p>\n
Rapidly industrializing Malaysia, which has graduated out of
\nits past heavy reliance on commodities, is now almost indifferent
\nto the fate of the new pact.<\/p>\n
Rubber traders, meanwhile, had said an international
\nagreement such as INRA would only serve to \"confuse\" the rubber
\ntrade.<\/p>\n
\"The market will perform better without such an international
\nagreement,\" a Singapore trader said.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/malaysia-threatens-to-break-rubber-pact-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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