France in butter deal

Press, 26 November 1982, Page 26

France in butter deal

NZPA London France has agreed to supply between 50,000 and 80,000 tonnes of butter to the Soviet Union under a recently completed agricultural products agreement, according to the authoritive weekly newspaper “Agra Europe.” The Brussels-based publication says in its latest issue that a detailed French memorandum on the FranceSoviet agreement signed in Moscow on October 16 lists butter and milk powder along with a host of other products which France has undertaken to sell to the Russians over a three-year period. . France, “Agra Europe” says, has agreed to supply a million tonnes ■of wheat, 500,000 tonnes of sugar, and the 50,000 to 80,000 tonnes of butter.

France has been blocking final approval of New Zealand’s 1983 butter quota until the Common Market confirms its decision to resume sales of subsidised butter to the Soviet Union.

“Agra Europe” says that exact quantities of other products such ds poultry and wine have not been specified in the agreement, and the amounts will be open to negotiation between French traders and Russian Government officials. Under the so-called “secret protocol,” it adds, France will supply at the world price and will insure in its negotiations with Brussels that it obtains export funds so that the butter, grains and other main products can be supplied at the lowest possible price. “Agra Europe” says that the E.E.C. commission is

considerably upset at the Franco Soviet agreement which it regards as illegal French unilateral negotiations with the Russians. The commission, it says, is likely to take action against France under article 169 of the Rome Treaty for infringement of the “prior information ' and consultation procedures” drawn up in 1969 on trading agreements with third countries. The situation has further diplomatic complications in that the Soviet Union does not recognise the existence of the'E.E.C. “Agra Europe”’ says that commission lawyers are considering both the content and the form of the negotiations between France and the Soviet Union. The matter will be discussed by the commission at its meeting on December 1.