Document vypoyE62B2K56QGdaeqz0q7eZ

RgPORT <3P K5ETIHQ WITH PRODELEC, PARIS. AUGUST 5 1970 -/ i mssxrn for frodelec M. alien F. jay W.F. Sman& FOR MONSANTO i'. . v i ` - COPSES * - ! D,8. "Caaeroa J. Th4venin H.H. Dahlstron - BRUSSELS : P.J.A, Marsh - BRUSSELS R.A. Onians -BRUSSELS re. B. Papageoflge - ST LOUIS ^jT^vIvenln . - PARIS* >v- H*A. Vodden fUJABOH ivnjJ; J CONFIDENT X A L sui-mmr Th objective was to determine Prodelec's position on a volun tary withdrawal of FCB from uncontrollable applications by all Vtest European manufacturers, and their reaction to possible unilateral action by Monsanto. To ensure there were no mis conceptions, 1 explained precisely what action Monsanto had taken in North America to control the PCD problem. Gilon thought it would be difficult for Prodelec to act differently from Monsanto, and his personal view was that all European producers should act together and quickly follow the Monsanto lead. On the other hand, amend thought it overioptimistia to expect all the European producers to act together quickly by, nay, January 1, 1971. In the event of our taking unilateral action, 2 believe we could get Prodeleo's assurance to refrain from offaring their phenocior products to North American and UK customers we cut off from Arcelor, but It might be more difficult to persuade them to do so with continental customers and, jar- ticularly, .within France . : -V .. <M */Z PCB-ARCH-EXT0376325  V" ' ' : ' ' , v. , PRODELEC KBETXHO - 5.8.70 f- \ ccaaFipaiTiAL : _ . . ..................... ,'ft"~j, .y v. 'list Vii'--2 PAGE 2 DETAIL X banded over a selection of recent US press cuttings which showed how the degree of adverse comment! upon PCS * s had in creased during the past sin maths, and also handed over copies of our three US press releases and of Congressman , Ryan's press release. Our proposal was that the west Euro pean manufacturers should act together to follow the Monsanto lead taken in Korth America, if that were not possible, it might be necessary for Monsanto to take unilateral action. Gilon thought that all three French suppliers should act as one and he personally favoured our suggestion for joint action. He also favoured quick and discreet action and he anticipated problems for the other producers if Monsanto actod uni laterally. I pointed out that withdrawal from the uncon trollable applications should help to protect the continued use of PCS'a by the electrical industry and in other M closed system" applications. Since there is not yet a PCB problem in France, Gilon suggested thata^ -programmo'-eou-ld bo -more easily implemented if it were ostensibly based upon the recommendation of some international authority - he suggested the BI?. In fact, the scale of the problem facing Prodelee is a good deal smaller than our own; since only around 10jo of their, sales are for non-electrical applications. These are all outside France, since the French domestic laarkat for plasticiser grades is . < handled by Progil and KuhlEsmi. In. an aside remark we thought we heard a figure of 900 tons quotod as the sal3 of plasticiser grades by Prodelec and Progil, but excluding kuhlmann. -. = ; ' : 1 ' tie wore asked about the Japanese situation and agreed to seek information from St. Louis. Prodelec have not accepted any business from former Monsanto customersin north America, and they think they could ontinuo to turn down enquiries from that market and from the UK. However, they indicated it would became progressively more difficult to turn down enquiries from the continent and especially from-within Franc. W knew that Jean Monfcet , President of Progil, is planning to visit St. Louis in early September and is hoping to meet with top Monsanto executives. Gilon stated that if Montet could be convinced that the PCB problem was seal and that the *./3 PCB-ARCH-EXT0376326 , IRODELBC MKETXBO - 3.8.70 .. COKF1DSHTIAL vfc:'/ ^ /BU3S 3 V.; ' ' European producers should jointly follow the US lead, then " the problem of persuading the three French producers to co-- - operate with us would be immediately solved. f*:' Smend asked if ve were continuing research work and Whether technical co-operation amongst the Askarel suppliers would continue in the future. X confirmed we were still working in area3 such as biodegradation and toxicity and that con tinued exchange of information would partly depend on what decisions were reached, fcr joint or unilateral action in Europe. Because of Coquillon's grave illness, day lias not yet had an opportunity of visiting Utrecht for discussions with Professor Van Genderen and his colleagues. Sraend put forward a third alternative to the two mentioned . above, but X believe it to be totally impracticable; He ' suggested that an ostensibly unilateral withdrawal by Mon santo should be accompanied by coma compensation deals with the other producers who would continue to supply their Aroclor equivalents to former Monsanto customers. ACEIQR ' , .; ';;;*; / /" ;' WBP - Advise on situation in Japanese market- Arrange for appropriate briefing of Jean Montet during St. Louis visit. DSC - Send copy of Congressman Ryan's news release to Smend. I?/* : . DSC/jk 19.9.70 PCB-ARCH-EXT0376327