CONSENSUS BUILDS FOR WORLD AGRICULTURAL REFORM Top U.S. and European farm trade and government representatives called for a sweeping reform of world agriculture to redress a critical demand and supply imbalance. Speakers at a conference on world agricultural markets here demonstrated a growing U.S.-European consensus on the need for an urgent and collective overhaul of world farm trade and production. "It is vital that we work together to bring more freedom and harmony into the world agricultural trade...(if not) the disruptions in markets may grow even more severe, the walls of protection climb higher and the level of possible retaliation become more harmful," U.S. Department of Agriculture Deputy Administrator William Bailey said. Bailey said his attendance at the two-day meeting, which ends tomorrow, demonstrated the U.S. recognises the need to adjust its policies to the changing market environment. The need for urgent reforms is justified by the "imbalance and tensions of the world economy," the secretary general of the Organisation for Economic Cooperation and Development Jean-Claude Paye said. And the forum for such a reform is the General Agreement on Tariffs and Trade, he noted. Paye stressed the need for a progressive and joint reduction of agricultural subsidies as well as social measures to help farmers in unprofitable areas. Another possible solution would be to stop supporting farm prices, allowing them to be fixed by supply and demand, and instead help farmers through income support and adjustment aids, proposed James Howard, Executive Vice-president of Cargill (USA), one of the world's largest cereal houses. Franz-Josef Feiter, agricultural adviser to West German Chancellor Helmut Kohl, agreed the European Community must take greater heed of market constraints in fixing farm prices. However, "differentiated policy treatment is required" to take account of large disparities in the situation around the EC, he said. "Agriculture is an efficient sector of the European economy and will remain so if the right policy is pursued within the Community," he said.