INRO to abolish working group

INRO to abolish working group

KUALA LUMPUR (Reuters): The International Natural Rubber Organization (INRO) on Wednesday decided to discontinue a working group set up to chart the future of international cooperation in natural rubber, INRO acting executive director Gerard Loyen said.

INRO's governing council had agreed in September to set up the open-ended working group following the dissolution of the world rubber body.

The discontinuation of the working group was decided after a meeting between its members and a task force comprising non- governmental organizations and the private sector.

Loyen told reporters that the decision was made after considering the cost involved and the existence of the International Rubber Study Group (IRSG).

"It was decided that the working group would not go further and that the future of international cooperation in natural rubber should be considered at the IRSG," he said.

INRO was formally dissolved in October after leading producers Thailand and Malaysia decided to quit the world's last producer- consumer commodity pact.

Thailand is the world's top rubber producer and exporter while Malaysia ranks third after Indonesia.

Loyen also said the council will formally decide on the timing and method of selling rubber stocks held by INRO on Thursday.

Delegates attending a special session of INRO in Malaysia's capital said members informally agreed on Wednesday to dispose INRO's buffer stock of 140,000 tons within 18 months from January and that selling would be done through open tender.

Under INRO rules, the organization has up to three years to liquidate the stockpile.

A delegate said it was also decided that up to 34,000 tons of rubber can be sold in a month.

"After a lengthy discussion and efforts from all members, the resolutions have been adopted regarding the timing and procedures for the orderly disposal of stocks. They will be decided by the council tomorrow," Loyen said.

Producers and consumers earlier could not agree on the time frame and method for the disposal of the buffer stock.

Delegates said Malaysia had wanted the stocks to be disposed within six months, a proposal strongly opposed by Indonesia.

Also, the European Union was said to prefer sales to be made through brokers while another major consumer, the United States, wanted tire manufacturers to bid directly.

INRO's governing council would also discuss a budget for 2000 and the appointment of a new executive director on Thursday. The special session is scheduled to end on Friday.