EC MINISTERS CONSIDER CUTBACKS IN STEEL SUPPORT
  A new steel quota system that would
  strictly limit European Community (EC) support to the industry
  could be forced on producers if they fail to find their own
  solution quickly, officials said.
      EC industry ministers meeting here considered two key
  proposals aimed at cutting back surplus capacity by 30 mln
  tonnes by 1990.
      The first would limit the current quota system, which has
  protected EC output for seven years, only to flat products and
  heavy sections, thereby forcing other types of steel products
  into free market competition.
      The second proposal would link continuation of a quota
  system with progress toward plant closures, although less than
  a month ago the EC steelmakers' lobby group Eurofer said they
  had abandoned efforts to close plants voluntarily.
      The ministers stopped short of imposing their own solution
  immediately, instead urging steel producers to try again to
  reach agreement on voluntary cutbacks.
      The EC Commission has said it will come up with detailed
  proposals in July on the future of the EC steel industry and EC
  industry ministers meet again in September to reach a final
  decision.
  

