RUBBER TALKS CHAIRMAN CITES SLIGHT PROGRESS There has been slight progress towards reaching a rubber pact, the chairman of a United Nations conference on a new International Natural Rubber Agreeement, INRA, Manaspas Xuto of Thailand, said. "There has been some slight progress but it is not the end of the road yet," he said. The conference, which began Monday, is seen as the last effort to adopt an accord to replace the current one which expires in October. Some 40 producing and consuming countries are taking part in the two-week meeting. Xuto said if the key outstanding issues are not resolved by tomorrow he would hold weekend meetings. At the beginning of the conference, the fourth such meeting in nearly two years, Xuto said it was imperative to settle those issues this week so that technical drafting work can be done next week. Conference sources said it is highly unlikely that producers will accept a pact that will provide for any possible downward adjustment of the floor price, as proposed by consumers under certain circumstances. The sources said this means that any possible adjustment would centre on the reference price, and the "may buy" (or "may sell") and "must buy" (or "must sell") levels without changing the "lower indicative price" (or floor price) of 150 Malaysian/Singapore cents a kilo in the present pact. The present five-day average of the indicator price is around 192 Malaysian/Singapore cents. Consumers are seeking an adjustment of the reference price, set in the current accord at 201.66 Malaysian/Singapore cents a kilo, and of the "lower indicative price" if the buffer stock, currently 360,000 tonnes, rises to 450,000 tonnes. Consumers want price reviews at 12-month intervals instead of the 18 at present, and the price revision mechanism to respond automatically to market trends. At present, if the market price has been above or below the reference price for six months, the reference price is revised by five pct or by an amount decided by the International Natural Rubber Organisation council. Consumers say that, in these circumstances, the adjustment be automatic at five pct or more. Producers have resisted reducing the role of the council in the price adjustment procedure and have expressed concern that changes proposed by consumers would weaken the present pact.