French Leader Calls Accord Unacceptable : Trade: But prime minister hints that France may not veto the U.S.-European pact on farm subsidies.

Prime Minister Pierre Beregovoy called a U.S.-European Community deal on farm trade unacceptable Saturday, but he urged angry farmers to remain calm and indicated he is willing to negotiate.

France’s hard-line stance against the agreement has isolated it from its EC partners, who agreed to the farm subsidy reductions Friday. The 12-member EC fears that the dispute could escalate into a transatlantic trade war that would harm everyone.

But Beregovoy said “difficult negotiations” are still ahead, indicating that France might not exercise its EC right to veto the farm accord.

He and Agriculture Minister Jean-Pierre Soisson urged French farmers, who have held angry demonstrations against the unpopular Socialist government and the United States, to refrain from violence.

The French consider farming to be a part of their culture, and they have tremendous sympathy for their farmers, who have a powerful political lobby.

The farmers have mobilized hundreds of thousands of supporters for rallies in the past and could paralyze major cities if they and their sympathizers took to the streets.

And the Peasant Confederation--representing people with small farms--joined calls for a huge demonstration in front of the National Assembly on Wednesday, when a debate on the trade agreement is scheduled.

A McDonald’s restaurant closed in Amiens, about 60 miles north of Paris, after about 100 farmers tried to enter the premises. The farmers exploded firecrackers outside and pasted posters on the windows, but no major damage was reported.

In Lille, north of Amiens, about 20 farmers burned hay in front of another McDonald’s. Earlier in the week, farmers entered a McDonald’s and stomped on hamburgers as a symbolic protest against the United States.

Washington and the EC ended their protracted farm talks when they agreed Friday to cut exports of government-subsidized European grain by 21% and to reduce oilseed crop acreage.

With the agreement, the United States withdrew its threat to impose 200% tariffs on $300 million worth of European products--French white wine was the main target--beginning Dec. 5. France had vowed to respond in kind.

EC officials said the agreement was unanimously endorsed Friday by the commission, but it still must be adopted by the member states. Britain, Germany and other large EC members support the trade accord.