Their harassed victims take time off through stress, cutting output and efficiency.

Inventories built up, particularly in manufacturing, and companies responded by cutting output until it was below demand.

Mr. Fraser told the men to cut output to 12.

No auto maker has yet indicated any plans to cut output.

Refiners have cut back output to below 84 percent of capacity, from 92 percent last summer.

"After a while, they will have to cut output."

Last week, it said it planned to cut output by 2,500 cars in the first quarter.

Cartel members cut output sharply in 1998 and 1999, then realized over the last year that by working together, they could keep prices high.

This in turn means that the foreign firm's best response is to cut output, although not proportionally (hence, the market price falls).

Operators had to cut output to 20 percent.