EUROPEAN CHIEFS ARE DEADLOCKED ON MARKET ISSUE
The summit meeting of European Economic Community leaders ended today in a deadlock over proposed cuts in farm spending and Britain's demand for a $1 billion budget refund. The breakdown leaves the 10-nation Common Market on the brink of bankruptcy and facing the most difficult political crisis of its 26-year history, according to officials here. The debate over farm spending is of crucial importance to American agricultural interests because the Common Market's farm policy encourages European farmers to produce more food than the community needs by guaranteeing them high prices and keeping out inexpensive imports. Persistent Trade Tensions With the help of big community-financed subsidies, these surpluses are then sold on the world market, where, successive American administrations have complained, they compete unfairly with American agricultural exports. This results in persistent trade tensions with the United States and threats of ''subsidy wars.''