6:51 AM Mar 13, 1995

US AND EU NOW 'TALKING' ON WTO CHOICE!

Geneva 13 Mar (Chakravarthi Raghavan) -- The general membership of the World Trade Organization were awaiting a possible compromise or understanding between the United States and the European Union to enable a consensus on the election of the WTO Director-General.

The United States and the EU Commission are now reported to be having trans-Atlantic conversations at the level of senior officials. Till last week the US Trade Representative Mickey Kantor and the EU Commissioner Sir Leon Brittan were reported as not talking.

An informal meeting of the heads of delegations to the WTO is being scheduled for Wednesday 15 March (when the present head, Peter Sutherland term expires as the 'first Director-General of the WTO), but delegates were not certain whether it will produce any compromise either on the WTO head or even on the interim arrangements.

WTO General Council Chairman, Amb. Kesavapani of Singapore, is expected to confer with a key group of some 20 delegations to assess the outcome of the informal head count done by him last week and confined to the two candidates in the running, EU's Renato Ruggiero of Italy and South Korea's Kim Chul-SU. In the light of the views at the smaller meeting, Kesavapani is expected to advise the informal heads of delegations meeting on what he plans to do. While the support for Ruggiero and Kim has reportedly been conveyed to the EU and Korea (and presumably to the US), in an effort to produce a consensus, the figures are not intended now to be made public, unlike the last head count done among the three candidates, GATT sources said.

This has been generally interpreted to mean that while more delegations are now supporting Ruggiero, it is not decisive enough to promote a consensus for him.

Several of the Latin Americans, previously supporting the former Mexican President Carlos Salinas, have now swung over to Ruggiero, but others have not, merely saying they could go along with any consensus but had no preference for either.

The United States has reportedly said they need more time which some say is in terms of 'days'.

One of the key delegations said the US has now to indicate whether it will support Ruggiero or suggest any alternative.

But whatever alternative they suggest would now be shot down by the EU.

The selection of the WTO head is also said to be tied up with the US-EU tussles on the appointment by the UN Secretary-General of a head for the United Nations Children's Fund -- a post till now held by an American but where there is an American candidate and three Europeans.

Given the insistence of the WTO delegates that they would have no links with the United Nations, this linkage between the choice of heads of UNICEF and WTO will be an ironic turn.

But if the US and EU strike a deal, and Ruggiero ultimately heads the WTO, it will be as a third or fourth choice and reduce the effectiveness of the office. In any event, this will take some days at the minimum. Meanwhile, delegates are faced with the problem of the interregnum.

Sutherland had previously let it be known that he would be 'flexible' about his departure, but given the EU stance and the way EU delegates have been talking to the media, Sutherland could just decide to go away and not agree to these ad hoc extensions, one source said.

Most WTO delegations would prefer Sutherland continuing in office until his successor is chosen.

But the EU is opposed and would agree to Sutherland being asked to remain in office for a couple of weeks, but only if there are indications that US would be ready to compromise and back Ruggiero, some delegations said. They see this as unseemly, but the EU seems to be unconcerned, its delegates saying that one of the Deputies could be in charge.