European and U.S. government officials have set a June deadline to settle differences over privacy issues that could affect how financial institutions handle consumer transactions.

The deadline was disclosed by Gerard de Graaf, first secretary of the European Commission, who addressed a conference Thursday sponsored by KPMG Peat Marwick.

At issue is how the United States will respond to a European Union data directive that went into effect in October. The United States supports a self-regulatory approach recommended by the Department of Commerce. The European Union would prefer regulation.

John F. Mogg, European Commission director general, met for three hours Wednesday with Commerce Department Under Secretary David Aaron.

They agreed to meet again in March and conclude their negotiations at their next meeting in Germany in June, Mr. de Graaf said.

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