FRANCE WILL FIGHT EC FARM PROPOSALS - MINISTER French Agricultural Minister Francois Guillaume warned that France would flatly reject proposed reforms of the European Community, EC, cereals, sugar and oilseeds sectors, which he said would disrupt these markets. The EC Commission's proposals to shorten the intervention period and lower monthly premiums for cereals and increase the financial burden on the sugar producers will also result in lower real prices for producers, he told farmers here. "I give you my word that France, while it will not reject technical adjustments or serious discussion, will simply reply in the negative to these bad reforms," Guillaume told the annual conference of the country's major farm union, FNSEA (Federation Nationale des Syndicats Dexploitants Agricoles). Community agricultural ministers are due to meet again Monday to try and agree a package of reforms to curb spiralling EC output and fix farm prices for 1987/88. Relations between the government and farmers have become strained in France in recent months. There have been sporadic but frequent demonstrations by farmers protesting over sharp falls in meat and pork prices and further cutbacks in Community milk output. But Guillaume's warning that he would reject reorganisation of the EC cereal and sugar markets -- France being a major producer of both crops -- won him warm applause from the FNSEA's farmers. His pledge to fight the EC proposals and push for the complete dismantling of the system of cross border taxes designed to smooth out currency differences known as Monetary Compensatory Amounts, MCA's, however, are unlikely to avoid further protests by producers. Farm leader Raymond Lacombe said the union planned to go ahead with a series of major protests both in France and abroad against the EC Commission's proposals to overhaul the farm sector. "The Minister's proposals back up our determination to organise union action in the coming weeks," he told reporters, adding that this could also act in Guillaume's favour on a ministerial level. Guillaume was head of the FNSEA for many years before being appointed farm minister last spring. Lacombe refused to say whether the farmers felt that Guillaume was doing a good job as farm minister. There have been certain advances on cutting production costs, reducing fiscal costs and awarding drought aid, but there are still areas where more could be done such as on farmers' indebtedness, he said. Guillaume told the conference the government will make available 2.4 billion francs (396 mln dlrs) to help producers reduce milk output and to encourage older farmers to retire. The government has already announced financial aid for the milk sector and it was not clear how much of the package announced today was new aid, Lacombe said.