E.E.C. discusses loans and sugar

Press, Volume CXIV, Issue 33671, 22 October 1974, Page 17

E.E.C. discusses loans and sugar

(N.Z.P.A.-Reuter—Copyright) LUXEMBURG, October 21. Common Market Finance and Farm Ministers will hold parallel sessions in Luxemburg today on two Of the major economic issues currently facing the Community. The Finance Ministers will give the formal go-ahead for their plan for raising European Economic Community loans to help members with major oil deficits. Several major technical problems still have to be overcome and it is not yet clear whether the Ministers can reach final agreement today.

Outstanding questions cover the amount to be borrowed and how it should be raised. But no loans are expected this year even if the ministers reach full accord. Several member countries need the approval of their national Parliaments before they could agree to the scheme. West Germany, by far the richest of the nine E.E.C. States, which would have a major role in guaranteeing any loans raised, wants a ceiling on 1975 borrowings of SUS3OOO million. The Ministers of Agriculture are tackling the highly complex and sensitive E.E.C. sugar problem. They will try to define their own future production system and to set out their policy on imports from the sugar producers among the 44 developing countries currently negotiating a trade and aid deal with the Community. In addition, they will discuss a plan to subsidise imports for Britain from the world market to meet her shortfall in coming months.

If Britain can secure ‘a deal for cheap subsidised imports through the E.E.C.

today, it will break off its negotiations for a five-year contract with Australia, which anyway most E.E.C. officials consider would run counter to Common Market rules, informed sources said. The sources said that the main sticking point in arranging a deal is likely to be West German reluctance to underwrite schemes which would cost it — as the E.E.C.’s main fund supplier — a lot of money.

Israel’s deficit A rise in Israel's living standards must be temporarily shelved because of a balance-of-payments deficit expected to be SUS3SOOm by the end of the year, the Director of the Finance Ministry (Mr Avrahan Admon) says, adding that the Ministry is trying to obtain SUSIOOOm from Jewish and other sources to finance part of the deficit.—Jerusalem, Oct. 21.