EC hits US on farm trade, but official sees no 'war'

The European Community is disappointed at the direction of US agricultural export policy, but a farm trade war is not inevitable. That's the verdict of British Trade Minister Peter Rees, who spoke to an international business council here. He also said he had received a noncommittal US response to his government's request that US law be changed to prevent future sanctions against overseas subsidiaries of US companies.

The Europeans are concerned over the recent sale of US wheat flour to Egypt. And US Agriculture Secretary John Block, on tour in the Mideast, has not helped to ease tensions. On Tuesday he blamed the Europeans for devastating US farm sales to Saudi Arabia.