Malaysia to cut back tin output

Press, 13 February 1982, Page 9

Malaysia to cut back tin output

NZPA-Reuter Kuala Lumpur Malaysia would amend its National Tin Regulations to allow a cut-back in its tin production, said the Primary Industries Minister (Datuk Paul Leong) yesterday. Existing tin legislation in the country, conformed with the provisions of the existing fifth International Tin Agreement, would be amended after the Government’s announcement of a cut to reduce domestic dependence on tin revenues, he said.

The Prime Minister (Datuk Dr Seri Mahathir) said earlier that the cutback, over several years, would start from next year and would total as much as 25 per cent of Malaysia's annual production.

Industry sources said the cut-back would violate the provisions of the new sixth

International Tin Agreement, which will come into effect in July, provided there were enough signatories. The sixth agreement allowed export quotas and production cut-backs only on the agreement of the International Tin Council, the sources said.

Datuk Leong said a tin producers’ pact could exist alongside the sixth 1.T.A., similar to the Association of Natural Rubber Producing Countries which exists with the International Natural Rubber Agreement. But the sources said Malaysia did not expect the sixth I.T.A? to come into effect because only a handful of countries had signed the agreement which closes signing on April 30. Malaysia is the world’s biggest tin producer.