Malaysian threat clouds INRO meet<\/p>\n
KUALA LUMPUR (Reuters): The International Natural Rubber
\nOrganization (INRO) on Thursday began a crucial meeting of its
\npolicy-making council, with Malaysia's threat to resign from the
\ngroup dominating worries, officials said.<\/p>\n
Delegates at the two-day council meeting were also pondering
\nwhether to amend INRO's intervention policy and establish new
\nlevels for its entry into the market to please producers such as
\nThailand and Malaysia, said the officials.<\/p>\n
\"There are various issues that are worrying and no doubt these
\nwill be discussed, particularly the issue of Malaysia wanting to
\nleave (INRO),\" an official at the talks said after the meeting
\nbroke for lunch on Thursday.<\/p>\n
INRO's deputy executive director Gerard Loyen told Reuters the
\nmeeting was progressing well and constructively.<\/p>\n
\"The delegates have broken up into smaller groups, or
\ncaucuses, to discuss specifics but there's nothing unusual about
\nthis, considering the number of issues that have come up this
\ntime,\" Loyen said.<\/p>\n
He said a press communique will be issued at the close of the
\nmeeting in the Malaysian capital on Friday. \"But we can't promise
\nyet whether there will be a news conference.\"<\/p>\n
INRO, headquartered in Kuala Lumpur, is the world's sole
\nsurviving producer-consumer commodity grouping with the power to
\nsteer prices.<\/p>\n
But it has been strongly criticized by producers who charge it
\nhas ignored their plight.<\/p>\n
Thailand, the world's largest rubber producer, and Malaysia,
\nthe third largest, have complained that INRO's market
\nintervention levels to buy stockpile rubber are too low and
\nshould be raised.<\/p>\n
Under its current agreement, INRO can intervene to buy at its
\nown discretion if the five-day moving average of the daily market
\nindicator price dips below 183 Malaysia\/Singapore cents a kg. But
\nit must buy once the price hits 172 cents.<\/p>\n
Malaysia has vowed to leave INRO despite the rubber body
\nintervening in the market in recent months to support prices.
\nThailand has said it will decide on the status of its membership
\nafter the current council meeting.<\/p>\n
\"I think the Thais would want a new intervention price at this
\nmeeting,\" said the INRO official. \"They will need to take
\nsomething back to their country to appease their government.\"<\/p>\n
Another delegate at the meeting said it was uncertain how INRO
\nwould function even if only Malaysia quit.<\/p>\n
\"What will we do for the headquarters, which is now in Kuala
\nLumpur?,\" asked the delegate. \"Who is going to contribute to
\nMalaysia's voting share, which is now 23 percent in the council.\"<\/p>\n
He said Malaysia had to give a year's notice to quit INRO \"and
\nwe're wondering if they have considered all the ramifications of
\nmaking such a move\".<\/p>\n
INRO groups six rubber producing countries and 17 consuming
\ncountries.<\/p>\n
Producing countries include Thailand, Indonesia, Malaysia,
\nIvory Coast, Nigeria and Sri Lanka. Consuming members are the
\nU.S., Japan, China, Germany, France, Austria, Belgium,
\nLuxembourg, Denmark, Finland, Greece, Ireland, Italy, the
\nNetherlands, Spain, Sweden and Britain.<\/p>",
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"sponsor": "Okusi Associates",
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