Business Notes TRADE

In keeping with the Lone Star State's reputation for independence, a Texan aims to strike a separate peace in the beef war between the U.S. and the European Community. Because most American feedlot operators hasten cattle growth with hormones, the E.C. has banned more than $100 million of U.S. meat imports. Washington has retaliated by slapping 100% tariffs on $100 million of annual European food imports. But last week Texas Agriculture Commissioner Jim Hightower, declaring it was time "to cut the bureaucratic crap," proposed a way to provide hormone-free exports to Europe.

Critics swiftly broiled Hightower's plan, which calls for greater use of natural production systems. Reason: hormone-free feeding could add more than 15% to the cost of beef.

Nonetheless, the State Department reportedly has been cooking up a compromise in which the U.S. would export specialty beef products, including tongue and liver, that conform to E.C. standards. Secretary of State James Baker may offer such terms this week when he makes a diplomatic tour of European capitals.