12:36 AM Mar 15, 1995

KIM STILL IN THE RACE, SAYS KOREA

Geneva 14 Mar (TWN) -- Korea's Ambassador to the UN and the WTO said Tuesday that the Korean candidate for the top post at the WTO, Kim Chul-Su was still in the race and had not withdrawn.

But European sources said the US position was the key and, if the US in expected direct talks with the EU, were to indicate that it would atleast not block the consensus, a consensus decision in favour of Ruggiero will ensue over the next couple of weeks.

Meanwhile, WTO General Council Chairman, Amb.Kesavapani of Singapore is due to meet with a small group of key delegations Tuesday evening to assess the situation in the light of last week's informal head count, and also on interim arrangements pending a consensus decision.

An informal heads of delegations meet is set for Wednesday afternoon.

The interim arrangements for the Secretariat has become urgent, given the emerging view that no decision on a successor can be done by 15 March. And if the WTO is to function by its own rules, this is not something that could be done by WTO head or by Kesavapani, but only by members.

WTO Director-General Peter Sutherland's term is due to end on 15 March, the date agreed upon by the Contracting Parties when they asked him to continue pending a satisfactory outcome of the selection of a successor. The term was set in December, when there was a deadlock in the three-way race. The 15 March date was set at EU insistence, and after considerable 'haggling' when the EU held out against a six-month extension or three-month and asked for one-month extension.

The US and EU are expected to have some direct conversations by phone across the Atlantic Tuesday in which, the Europeans hope, the US side will lift its objections to EU candidate Renato Ruggiero, or atleast indicate it would do so after a short interval.

If this happens, the EU wants Sutherland to be requested to stay on for a short period. But if the US stays put, and does not accept Ruggiero, the EU does not want Sutherland's extension.

Sutherland's reaction to these EU tactic is not clear.

But there is some strong feeling among other delegations.

A junior diplomat accredited to the WTO said that Sutherland was being treated in the most undignified way by the EU and others who were acquiescing in it. It was almost on a par with the way Geneva's femme de m nage -- most of whom are illegal immigrants working clandestinely -- are engaged on an ad hoc basis from one week to another.

After last week's informal head count confined to the two candidates -- EU's Renato Ruggiero and Kim -- there have been reports Monday that Kim was now likely to withdraw and this would enable Ruggiero's consensus choice, unless the US comes out and says 'No'.

The Korean President is currently in Brussels (where he has met with the EU President Jacques Santer and other Commission officials) and is due to return Tuesday night to Seoul. But EU expectations that the visit will result in a Kim withdrawal does not seem to have borne fruit as of Tuesday morning.

But EU sources suggested that the key to breaking the deadlock lay with the US and the issue will be decided on the basis of whether the US will atleast acquiesce in Ruggiero's selection.

The Korean Ambassador to the UN and WTO, Amb. Seung HO, said Tuesday that his country was disturbed by three trends:

The WTO was a world organization created by the Uruguay Round which had global participation. The top post at the old GATT had been occupied since inception by a candidate from a single region (Europe) and if an European were to be elected again, the European hold on that office would be for more than half a century.

Nevertheless, the major countries in the WTO who ought to be responsible for the sound development of the WTO and establish good practices had not made clear their position on this issue till now.

Also, in the GATT and WTO secretariat, despite its weight in world trade, Asia, and Korea in particular, were under-represented.