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.