ICCO GROUP LOOKS AT COCOA BUFFER STOCK RULE PLAN The International Cocoa Organization, ICCO, buffer stock working group began examining a draft proposal for buffer stock rules this afternoon, delegates said. The plan, presented by ICCO Executive Director Kobena Erbynn, represented a compromise between producer, European Community, EC, and other consumer views on how the buffer stock should operate, they said. The proposal involved three key principles. First, the buffer stock manager would be open to offers for cocoa rather than using fixed posted prices as previously, delegates said. Under an offer system, the buffer stock manager would be free to choose cocoas of varying prices, they said. The second provision was that non-ICCO member cocoa could comprise a maximum 10 pct of the buffer stock, while the third laid out a pricing system under which the buffer stock manager would pay differentials for different grades of cocoa, to be set by a formula, the delegates said. After the plan was presented, working group delegates met briefly in smaller groups of producers, EC consumers and all consumers to look at the proposal. Producers gave no reaction to the scheme and will respond to it when the working group meets tomorrow at 1000 GMT, producer delegates said. Consumer members accepted the proposal as a good base to work from, one consumer delegate said. Delegates said the proposal was only a starting point for negotiations on buffer stock rules and subject to change.