Document wgJML120oy6z0GnB6OZxojdKB

REPORT or MECTZHO m<nt VBCMT.wr. r>me| auqqst 5 1970 fresjbtt ro* prodklbc n. oiion t. Jay V.V. Soand roii mmno t D.S. Cameron J. Thdvenia cosxbb H.B. DahlstrOO . BRUSSELS P.J.A. Marsh . BRUSSELS R.A. oniana - Brussels I R.A. Voddsn - RUABOH COMFIPBUTIAL guiwunr Ths objsetlva va> to datamine Prodalac's position on s volun tary withdrawal of PCS from uncontrollnblo applications by all Host European Manufacturers, and their reaction to poosiblo unilateral action by Monsanto. to ensure there wars no ais- . concsptions. Z explained precisely what action lionssnto had taken in north Anarlea to control the PC3 proklai. Gllon thought It would bo difficult for Prodelec to act difforontly from Monsanto, and his personal view was that all European producers should act together and quickly follow ths Monsanto load. On ths other hand, smsnd thought it ovsr^optinistia to expect all ths European producers to aot together quickly by, nay, January 1, 1271. Zn ths event of our talcing unilateral action, 1 bollsvs ve could got Prodsloo's assurance to refrain from offering their Fhenoelor products to north ftaorlcan and UK customers wa cut off from Arcelor, but It might be mere difficult to persuade them to do so with continental custoraoro and, par* ticularly, within prance. HONS 076473 FROOBLRC MSRHO * 5.8.TO puriPWiM. Jkiu.u. max 2 X huM orar Hltetiaa of recant US mu cuttings which Showed how the degree of adverse eomraeng open tea's had In. creased during ths past six months, and also handod ewer oopiss of oar three US press releasee and of Congreesnen Ryan's prose release. Our propoeal was that the west Euro pean snnufacturers Should act together to follow the Monsanto lead taken in Korth America, zf that were not possible, it night be necessary for Monsanto to taka unilateral action. Oilen thought that all three French suppliers should act aa one end he personally favoured cur suggestion for joint action. Bo also favoured quick and discreet action and hs anticipated prOblene for the other producers if IMonsanto actad uni laterally. X pointed out that withdrawal from the uneoatrollabla applications should help to protect the oontinaed nee of FCB'e hy the oloctriael industry and in other 'closed system" applications. Sines there is not yet s FCB problem in Prance, Oilon suggested that a vitlidraval -programs could ha more coolly implemented if it were ostensibly based upon the recommendation of sane international authority - he euggoatod the 81?. Zn fact, the eoalo of the problem facing Frodeleo is a good deal smaller than our own, since only around 10% of their, solos are for non-electrical applications. Those ars all outside Fanes, since tie French domestic market for plasticiser grades is handled By Progil and :cuhlccrm. Xn an aside reiuark we thought ve hoard a figure of 000 tons quoted ae the sales of plasticiser grades by rrodelec and Frogll, but excluding Kuhlsmnn. W* win naked about the Japanese situation end agreed to seek informtion from St. Louis. Froctelec have not accepted any business fraa forror Monsanto customers in usrtb A.-rorica, end they think thoy could ntinuo to turn down enquiries iron that mrket and frora the w:. However, they indicated it would become progressively tore difficult to turn down enquiries from tho continent and especially fraa .within I ranee. We know that Joan Montct, President of Progil, is planning to visit St. Louis in early September and is hoping to meet with top Monsanto executives, alien stated that if Montet could bo convinced that tho FCB problem was real and that the ,../X MONS 076474 Vr-------.------------- '' PROHELBC MBtIM - 9.3.70 , eonriwariM. i 3 Buropean producer* should jointly follow tho 06 load, than tka problem of persuading tha threa Frandh producers to oooperate with ua would to* iamsdiately solved* tinand aakad if wa war* continuing rasearch work and technical co-operation aaoajit tha Askarel suppliers would eontinu* in tha future. X aonfirasd wa war* still working in arras sueh as biodegradation and toxicity and that con tinued exchange of information would partly depend on what decisions wore reached, fcr joint or unilateral action in lurope. Becaus* of CogullIon's grave illness, jay has not yet had aa opportunity of visiting Utrooht for discussions with Professor van Senderen and bis colleagues. Baand put forward a third alternative to the two mentioned above, but X believe it to be totally impracticable, lie suggested that an ostensibly unilateral withdrawal by Mon santo should he accompanied by some compensation daala with the other producers who would continue to supply their Aroolor equivalents to former Monsanto customers. ACTXCM /" ' '` ' MBP - Advise on situation in Japanese narXet. Arranga . for appropriate briefing of Jean Hontat during St. Louis visit. DSC - Send oopy of Congressman Ryan's news release to Snend. DCC/Jk 19.8.70 MCNS 076475