Malaysia, RI scramble for INRO top post
Malaysia, RI scramble for INRO top post
KUALA LUMPUR (AFP): Indonesia and Malaysia were locked yesterday in a tussle for the top post of the International Natural Rubber Organization (INRO), a dispute officials said could jeopardize a new UN-brokered rubber price pact.
Indonesian delegates to INRO's semi-annual council meeting, which opened yesterday, declared it was Indonesia's turn to be given the post of executive director of the Kuala Lumpur-based INRO when the new rubber pact was enforced.
"Now it is our turn again," said Rosediana Suharto, head of Indonesia's delegation to the week-long meet to study the status of the third International Natural Rubber Agreement (INRA III), hammered out in Geneva in February.
Her remarks followed a declaration on Sunday by Malaysian Primary Industries Minister Lim Keng Yaik that Malaysia would only ratify INRA III if it was given the post.
The post, first held by Indonesia at the start of INRA I 16 years ago, is currently held by Thailand's Pong Sono.
Rosediana, however, declared it was Indonesia's turn again under a "gentleman's agreement" among the key producer members of INRO -- Indonesia, Malaysia and Thailand.
"It is a gentleman's agreement that Indonesia gets the post again after Thailand. Malaysia gets the headquarters," said Rosediana, Indonesia's candidate for the post.
Asked whether Indonesia was also laying down a similar condition for the ratification, Rosediana said her "political masters" would decide on whether to ratify the INRA at a meeting in Bangkok next month.
Her delegation, she said, carried no mandate to agree to ratify at the meeting.
Malaysian officials said by rotation among INRO's key producers, Malaysia was to be given the post.
Malaysia's Lim said it was time Malaysia spoke up as it had been taken for granted. "We will sign, but we have conditions. Our ratification will depend on what we get," Lim said.
Lim said Malaysia was a founding member but added that it could do without INRO.
Declaration
INRO buffer stock manager James Hegarty said yesterday that though members have until Jan. 1, 1997 to ratify INRA III, all 27 members have to declare their respective positions on the pact by Dec. 28, when INRA II officially expires.
While the INRO council could declare an interim period pending the ratification of INRA III, officials warned that INRO could go into liquidation if either Malaysia or Indonesia opted out of the agreement.
"Indonesia holds 33 percent of the votes," Rosediana said. Thailand, the world's leading producer now, and Malaysia, the third largest, hold the remaining key producing votes essential for ratification.
INRO, which groups six producers led by Indonesia, Thailand and Malaysia and 21 consuming nations led by the United States, European Union and Japan, administers INRA through operation of a buffer stock mechanism to stabilize rubber prices.
Rubber traders meanwhile said an international agreement such as INRA only served to "confuse" the rubber trade.
"The market will perform better without such an international agreement," a Singapore trader said.