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^ ,f v with £ 850 m. funds 

!:"■ -'“2 a ‘ fV**' -." BY TERRY dodsworth, motor industry correspondent 

J 7 ilSUWJJ iiwc British Leyland has won nnequivoeaJ backing from the Government for a 

■-:.= - v ’ r.- ?-«a^,rhe Rhodesian-based black tag Budget aSi revi sed £1.3bn. Investment programme which will include the injection of 
,-V n . '^rv a nationalist, factions yesterday indei closed o down at 462.5 £85 Om. worth of State funds over the next four years. 


| Propsrty Consultants 


II PDUVTAlfi STREET, 

MAuCHcSTER M2 2AM, T e j. 06 i 236 3327, 


lIFilM 


No. 27,525 


Tuesday April 4 1978 


4 


CQNTmpHTAt mime PRICED AUSTRIA fcfcjfS: BELGIUM. FrJS; DENMARK 


Timber, Building Materials, Heating and 
Plumbing Equipment for the Construction 
and Allied Trades. Northampton 52333 


KrJJ; FRANCE FrJ.fl: GERMANY DH2.B; ITALY L.500; NETHERLANDS Fl.J.O; NORWAY KrJJj PORTUGAL E*JO; SPAIN Mas .40,- SWEDEN Kr3JS; SWITZERLAND FrAOj EIRE lSp 


NEWS SUMMAR 


BUSINESS 


tent hacks 
investment 


YEN 

AG AINST 
THE DOLLAR 


1977 1978 


Rescue fund 
plan for home 
loan societies 

BY MICHAEL CASSELL, BUILDING CORRESPONDENT 


'* I ^b'rwlsscribed President Carter's call down a * He has been, given almost £450m. this year, with the possi- the Commons and this is ex- 
it -.err^iurmg his Nigeria visit for such k cnmiHr r everything he asked for in his bilily of further amounts to be pected to be followed by a debate 

conference ■ a s “fruitless tr, review of Leyland’s future, in- reviewed at the time oF injection, next week. 

i V.' u ; ^.AuScid al and- impudent" SL8680 with Us trade alighted eluding a new equity provision It is dear from the NEB re- The Boards report is a 

' : '; irn asii?' At Mpopoma, a black township hwies unchanged at 6Uf. .The of £450m., and fresh monitoring port that Leyland needs this in- markedly more cautious docu- 
• 3 -« •« wjwhilside Bulawayo, " Rhodesian -doURr . suffered heavy selling arrangements which will give him crease in equity to restore its roent than the Ryder plan. It 
I'Cr-j^cahL^olice used, tear-gas to break up a until Bundesbank intervention, freedom to push ahead' with capi- ability to attract loans From pri- makes oo pretence that Leyland 
**i S:a tnLLOOO-strorig - demonstration in and its depreciation listened to tal investment irrespective or the vale sources. At present, says the will be restored to the ranks 
.^-.r^avouT of the Patriotic Front - •• - short-term industrial relations report the company has an un- or the leading competitors in the 

Fnm ^^jnerUJa alliance. f!l.usc«u» position. satisfactory debt equity ratio of world motor industry within the 

*' Meanwhile/ President - Carter. -.••• .Vv: Mr. Eric Varlcy, industry mfr mart p 9P n 5 next few years and avoids men- 

-*-« d.aa a before returning to Washington. mjV • - l - , Secretary, said in London that ” ^ tion of specific targets and 

■' ^--ned t^f'rom Monrovia. Liberia, told \^- CANADIAN the management had the ** right Parliament Page 10 market share objectives. 

!*s h3vp ^kmth- -Africa that it must move m— — DOLLAR to expect our full support in Lex BackPage -ft makes it clear that the 

Esjwerewards an., internationally V* J •' ^eir efforts to put British Ley- 75-05 whf ,« r.* S o m wflrth of new Board believes that ihere were 

^icceptahle arrangement for black | land on a sound footing. 1 ant Slritv j , JSSeo a ratio of fatal flaWs in the tentral »sed 

c " najority role in Namibia (South- it. I encouraged by the recent So ^51 wrh inh ESi “ on some wav organisational structure eslab- 

^ ‘ s ,;; p ^Vest Africa). Back and Page 3. sa — - ~r-tg J' evidence of improvements in the towa rris t he i-nmn^n v’sntai lished for ^e company in T 

'*■ - Lltf - den and Matters, Page 16 . .' V fv /\ market share. and output of Ley- Ine ■ LOinpanj 0 Jec " and that the management had to 

^mparabilifH ey erdahlbu rns - . . ; VJr \ |“ d nm!e“ihe Ryder report, Whi(* CO m??nTri&ts i^e which wi>) ^Other points made in the report 

. . 30 “t \ formed the basis for the Govern- mart* in na-»r fiitnm an* include: • 

■ L . rijdfj^eed boat in , .• „ A ment rescue of Leyland three ° e h ,? h ad ,® 1 S™*®,!® t -Monitoring of Ley land's per 

■ , ■ ■ . . - 4- - - *- - ym ago. tW-Mw strategy for Bo«rtV .t.k» ln Leylii"d from by tbe board will 

n ^ Stntl“WSir protest- ■ • ^ \ the company has not been pub- 95 per cen * i 0 99 per^ ^cent. There nD longBY be tied to specific 

“J W PML Thot Heyerdahl. 83. the T“ ■ “ , ' X TT Iis hed in detaU. But the NEB wl] |* be ^0 separate advances improvemems in industrial rela- 

1 ^^NorwegiaD explorer of Kon Tiki Jw 1 Jg?.l_Ll report on the company's plan. yea r. These will be split tions and productivity Finance 

‘ ~ f '" Un^ow^humed his reed 1 ■ » ■« •» • * » -± r - V***™ to ftrUament yeater- between ^ Board and the In- will b e allocated annually against 

•i- 1 *.s’.p i«| -Tigris, ■ at Djibouti yesterday .in CE « . . _ •. - ./j; 40 > -*«»*.- da Y* in ^f cates thaL almost all the d US try Department, which will an corporate plan. 

:r dScribed » d nratest i 50 -P cr - ■**’ ^* 9 ? - assumpUons on which the Ryder provide n50rn . under section 8 2“ Blg e . fforts are ,0 * c ® ade 

, . r mainstviM Lathe Hom^ of Africa. Canadian doto ffad«d a- new rwusantsauon was based have of the im]llS |ry Act 1973. . to improve . productivity, 

; ' r t£ ‘ T^oL^HeyerdaU Srived at tS low at 87^25 ceria - been swept aside. This split in the funding with the aim of increasing car 


'avow* of the Patriotic Front 
iuerilla alliance. . 


CANADIAN 

DOLLAR 


• “ft EDib hJrf I uerU] a alhance. . 

•* Meanwhile/ President- Carter. 

■■ . ,"4lr : ” 3 J before retnrnihg to Washington . 

: , r \. ’U'‘ 1,1 e - KJ1? d ifcf'rom Monrovia, Liberia, told 
if , •• : -j v -!se have ^knith- 'Africa that it must move 
1 : n r. :> C3j w . rewards an . . internationally 

Occeptahle arrangement for black 
' -i: ' c-L ajority role in Namibia (South- 

t ^Vest Africa). Back and Page 3. 

.?. - ue. den and Matters, Page 16 

■ Xo fomparabjiiiHeyerdabl : -burns -- 

-j .V ; r ' r^^eed boat in , 

^ ^ anti -war protest 

“J"^ProL Thor Heyerdahl, 63. the 
„ ' '_ r ‘ ‘ NorwBfiian explorer of Kon Tiki 


III! K I JgtlJjj 

■ J ' A S 0 *« O J- P M A 


11 ted Sea iiOrt Jast Wednkday ^ ^ ****&&—* one feature which remains means that the Board will retain output per man per year from 

Swifter - a lo-week voyaee from an< ‘ afpiost intact from Ryder is the greater freedom to invest in 5-40 in I 9T7 to b.40 this year and 

--■'Southern Iran an attemot to ' 4 ® 0 York on total Government funding com- other projects. But at the same S.O in later years. 

^rovl that^ ancient qnmSans news Had S wwrtRn» a ttd is .to mitment of £lbn. between 1975 Ume. the Board’s £300m. com- 3— There will b e a net job loss 
- ^riES couldS end lte40 per backing add 1982. So far. £150m. of this mitment .to. Leyland means that this year of 10.000 excluding 

■ * has been spent, leaving tbe the limits on its lending powers the effects of tbe Speke closure. 


... tea.. oea yon iasi *v eauesuay ln«? SK/*;‘S18ZI J 

... “ifter a 10-week voyage from 

••• • -••(iaontliArn Iran in - an attonvnt tn tell ^Miply ht. Y 


: JTroopg took control of/$e£$itiv& fi U,S. 1 idt&hfiie: - 

• Tips as in the rndian ettiea M jw 

- - . ayderabatf arid S*ai88to»8s¥ & 6St7 ner «fcnt/iftB66). - T ; v 

• ' i^fter Noting & w*&$.at Ipast. p?r ^ . . . 

- T^iine people were^hotvilfed and. ^SONATRACH^he “Algerian ' ^jT3|t : *V 
:=rdiore thanrBO^ ^^HijuteiL. A4&hiouri Sta tB energy institution, is seek-. 

r ;urfew was imposed. . . in« avl^e«T o^turingdate on a ■ Mill 

' 1 1 ^ SSaem ^an^fs oegptiatmg with , 

._lJISter arms tind mserHatiwaH . -bank* ...to , help \ 


Healey-Steel talks on 
Budget break down 


‘ Police searcUng a Belfast" house' ' BY RICHARD EVANS, LOBBY EDITOR. .. - . ; I 

^ound a U^uilt M60' machine. 1 ^ ean ^P^elww* \ .. ! 

• :Ij4^ r STJEEL Corporation has TALKS- ON 'Budget strategy unduly worried about the future can tly the retail price index. 

; ^assette- incendiary _^*“,.aniwunced a modification of- its b^Ween'Mr. Denis. Healey, Mr. last. night and there is nD sign Government estimates show- that 

' - 'out pistols. Toe Provisional fflA.. $l0J50-a-ton Twice rise, David Steel -and Mr. John Pardoe that . the- Lib-Lab pact will be Liberal proposals would increase 

^ -iaa made M.60 attacks in London- flowing criticism by President ended m deadlock last night ended prematurely, thus forc- the cost of living by about three | 
v rjerry, Bel fas.t apd South Armagh-.. Carter. . .. ‘ when the ChanceUor. refused to ing Mr. Callaghan into holding points later this year, thus prob- 

- 4. ' - ^. T - . . " ' m . meet the' demands of the Liberal an unwelcome General Election ably driving the index back into I 


■; r: . Arrest sought :'f; INJ aw.' Criryjppg '• (leaders. .- . . in tbe summer.' double figures. In a likely elec-; 

ThA FnrpiBn hffirp hsKlhstrocted • ^ - 1 . During a brief 40-minutc meet- The 13 Liberal MPs will meet tion year this would be politic-, 

" :. '-SfSJSh ToramiSoain i ' tag at the Treasury. Mr. Healey at Westminster to-morrow to. aly unthinkable for the Govern-; 

Sroro^nS- for iJirO ' " mfde it ctaar that he would not hear reports from Mr Steel and merit | 

"JobS P gSl tte be able to adopt the Liberal Mr. Pardoe, and to discuss tac- in. addition. Ministers believe 

n^nesmiam who is wanleti in • POST.OFFICE fs to introduce polliy o'F achieving big cuts in tics. • that .the proposal to increase; 

iricoimec- three new services to the National direct taxation of fjL4bn. partly A final decision wiU have to employers' national insurance | 


•services 


si man I 


Dollar 

below 

Y220 

BY DOUGLAS RAMSEY 

TOKYO. April 3. 
EMBARRASSED by soaring 
foreign exchange reserves which 
now top S29.2bn„ the Bank of 
Japan refused to intervene in 
exchange markets to-day and 
instead let the U.S. dollar drop 
below the Y220 mark for the 
first time since the war. 

The dollar fell Y5 from 
Friday's closing rate to Y218.15 
before closing slightly stronger 
at Y218J2. Thus, the yen’s 
appreciation since the start* of 
1978 has been 10 per cent. 

The absence of dollar support 
buying was in sharp contrast 
with bank's policy during March 
1 when Japanese authorities added 
S5bn. to their foreign exchange 
reserves on the proceeds of 
I intervention by the bank. 

To-day's announcement -of the 
increase in foreign exchange 
reserves from S24.2bn. to 
§29.2bn. was ’ one of the two 
key factors causing the dollar’s 
decline on the market. 

The other factor, according' to 
exchange dealers, was the week- 
end release of American trade 
figures for February, which 
showed an ail-time monthly high 
deficit of S4.5bn. in U.S. trade. 
Japan alone accounted for nearly \ 
Slbn. of the. U.S. deficit 

Officials said the new policy or 
the Bank of Japan was worked 
orittin discussions between Mr. 
Takeo Fuknda, the Prime Minis- ! 
ter, and Mr. Michiya Matsukawa, 
the Vice-Minister of Finance, and 
•bis chief advised . for inter- 
national financial matters. 

The bank, which intervenes on 
behalf of the Finance Industry, 
may now let the yen seek its own 
level on exchange markets after 
six months of heavy intervention. 
It was thought that the bank 
mopped up about S5.2bn. in intei^ 
vention during the fourth 
quarter of 1977, and a minimum 

Continued on Back Page 
Editorial comment. Page 16 

£ in New York 

— | ,\|iril3 [ 1'ivriiiup 


S]*t 91.SK4OS6&0 Sl_.a630-l.HWtl 

1 mijiiili OX1S-O.OS i>n-ui 1.05 ilivOJB [mi 

3uiimi(Iih 0.1 1-0.05 rli* O^K-0.02 ill* 
12 mm! Mr* ‘ a£0-0.7fr ill- 0.S&4).70 iti» 


A RESCUE fund may be estab- 
lished to help building societies 
which run into, financial diffi- 
culties. 

Moves to start the fund, which 
would be supported by the 
societies themselves, are 
expected to come in the wake of 
the collapse 'of tbe Grays Build- 
ing Society in Essex. 

Investigations following the 
death of Mr. Harold Jaggard. its 
chairman, showed that at least 
£7m. was missing from tbe 
Grays, which has assets of film. 

An investigation into tbe losses 
on behalf of the Chief Registrar 
of Friendly Societies begim yes- 
terday and could take months; 
The society’s offices are not 
expected to reopen for several 
weeks. It is thought that the 
business of the Grays will 
eventually be transferred to the 
Woolwich. 

Pressure for a fund to meet 
anv similar future financial 
failures is most likely to come 
from the country’s five largest 
societies— the Halifax, Abbey 
National. Nationwide. Leeds 
Permanent and Woolwich Equit- 
able — which have -been asked by 
the Building Societies Associa- 
tion to step in and cover the 
losses. - 

The societies have had little 
choice but to comply in order to 
prevent the Grays affair from 
seriously, undermining public 
confidence in building societies 
generally, although they are 
clearly angry at having to meet 
such a large hill from their own 
funds. 

It- seems likely that the largest 
societies will now insist that any 
such future losses are borne by a 
much wider number of societies 


and that contributions to a fund 
should be made, possibly related 
to the individual society’s assets. 

The big societies may also try 
To insist that they play no. part 
in the fund because their own 
financial stability is ^real enough 
to ensure that they would never 
have to seek its assistance. 

It also seems likely that there 
will be calls for greater powers 
to be invested in the Chief 
Registrar of Friendly Societies, 
the movement's “watchdog." 

The registrar now regularly 
monitors ail the societies’ 
accounts and can. as a result 
of discussions with all the 
parties involved, avoid potential 
problem's with the transfer of 
engagements from one society 
to another. 

There could now be pressure 
from the societies themselves, as 
well as the riegstrar, to give 
him the authority to actually 
enforce transfers of engagements 
where funds were potentially 
at risk. 

A tightening up of some of 
the regulations which control 
building society operations 
could also be put in hand. 

The latest developments will do 
nothing to improve relationships 
between the larger societies and 
their smaller counterparts, which 
now co-operate on general policy 
matters through the Building 
Societies Association. 

Some of the largest societies 
feel their operations have been 
unduly hindered by consideration 
for their comparitively tiny and 
invariably less efficient colleagues 
— most recently In the field of 
interest rates. 

The Grays casualty Page 16 


Ex-CivU Service head 
joins Bank of England 

BY PE7TR RIDDELL, ECONOMICS CORRESPONDENT 


THE FORMER head of fhd Civil 
Service bas been appointed a 
special full-time’ adviser to the 
Governor of the Bank of Eng- 
land. ' 

Lord Crohara. previously ' Sir 
Douglas Alien, retired, from the 
Civil Service at the end. of last 
year and will start his appoint- 
ment as Adviser to the Governor 
next Monday. - " 

The Bank' said yesterday that 
Lord Croham would concentrate 
initially on industrial problems. 
His work is intended to comple- 
ment that of Sir Henry Benson, 
who has been acting as Advisei 
ta the Governor for the last three 
years,- mainly on questions of 
industrial finance. 

It is not expected that Lord 
Croham will become involved in 
special projects, but rather that 
he will help to broaden the range 


rmeri raids f TO insurance contributions by 11 per BUI .urging - further, cuts in rate of income tax cut from 34 

. .. djoosmg the US- Boeing 737 as cfin ^ income tax and?a sharper shift to 30 percent, and continuation 

-urimen 7 inf two separate ;raids immediate re placement for age* The stage seems set for conflict from direct to .indirect taxation, of this rate -op to £8.000 a year, 

qatdheff £24,000 -from security mg rment ana une-naeven jets, between the Government and This could put the Government plus big cuts in higher rates to 

ds ' at the National Wert- Back rage Liberal MPs on the details of Mr. iii some difficulty if Liberal pro- increase incentives. 

r Batik’S. Romford:. Road. — nflMl&Tlc RATES have risen Healey’s budget- statement next posafc cotacide : with" those of the Now, the Liberals may not 

. Gate, East London, braueE P an averaee ll uer cent.- this Tuesday, although the Liberals Tories. publish formally their full 

^ _,06B£rom ^ a Chiswick, West- y£flr . compared with last vest's ere unlikely to vote against the Fatiure to agree hurt night was Budget proposals in order to 

WiAmnet nffipn ISTrt chnts “ n "K ll *eU - _ • . n.. v-iurfinn nf i-vncaA nrimsi-ilu hw Mr Poalav'e maintain- mnrd florihitinf uibon 


of general advice available to the 
Governor on a whole series of 
economic and industrial issues. 

Whereas Sir Henry Benson’s 
main connections have been with 
the private seeto,r. Lord Croham’s 
experience has been solely in the 
public, sector. His only direct 
involvement with industry was In 
the Department of Economic 
Affairs. 

The appointment of a former 
seniur civil servant to a full-time 
position in tbe Bank is highly 
unusualy. The recent preference 
of most retired Permanent Secre- 
taries bas beeD to take director- 
ships in industiy or the City. 

Lord Croham was head of the 
Hume Civil Service from 1974 to 
1977, and before that was Per- 
manent Secretary to the Treasury 
for six years. 




ndtinisubrppst office. No shots “ V(ir ioa increase of IS per cent Budget or the second reading of caused primarily by Mr. Healey’s maintain more flexibility when 
' •" : - Rn-b paM *nd Editorial Com- the Finance Bin. - resolute refusal to adopt policies the Finance Bill is going through 

- meni, : payje ^16 Monsters did not appear to be which would Increase nignifl- Parliament 

. ., , , , , 77 ■ . , 

fads to block Airco bid 


■ . ... « V- . menL Page 16 

ertvGRritianrForeign.-fluiUSter^ K “ :. „ to to bnbGshed. with 

dustry; the Department of In- 
Cronyb^b an !)« cotmny.. .^mary's weekly magazine. Par' 

JLebaidJBfe(s>Pmev t 4he- Soviet-- HamentrPage 10' ■. -■ 

der, West Germany . _ „ 1 

-niDiith. ; Page. 2- : _ ■* TOU GHER Government policy 


BT STEWART FLEMING 


NEW YORK, April 3. 


. lowar-ds" company mergers will BOC . INTERNATIONAL direc- But the Airco Board rejected that a majority of shareholder 

be discussed in Cabinet before to^ on the Board of Airco. the the validity of the BOC move— -approve the S50 a share bid by 
' .publication of a Green' Paper on u.S. indnstriai gases' producer, Aitcd is challenging BOCTs right May 31. 

-° r ti O ° policy next month. £aa«d to-day- to- block a rival to vote the la per cent. ^ of stock The court’s decision in the liti- 


Page 6 


g. AndredttL Italian Premier, COMPANIES 


Sfibted.'bid for Airco from Martin it acquired earlier this week, gallon could play a vital role in 
Marietta,, a leading U.S. alum- Then, over the objections nf the gig jjattle for control of Airco 
imuni and aerospace group. three BOC directors on Its jf jt goes against Boc. This 

- .Before an Aircor Board meet- w .^ ld pressure on BOC to 


"ted-3n 4*uiy. leaders for dis- nmaimrc is -Before an Aircor Board meet- j? 03 ^ voted t0 approve a pre- would put pressu.c «« u> 

fiiojis on the possibility . of 3pPWOraH_rCERAmcS w -Before an Agcor noa Jim in ary merger agreement with either m ^ch the Martin Marietta 

Stag' ransom - money .for the matanga mm,. Wd for J ^ rontro?M per cent Tf Martin Mariettam. offer or ^ cept iL 

forme* premier, .Sig. at^ Srco’s stock, tried P to paralyse The Maitin Marietta offer is, If it did neither, then ft would 

.. a nd 39p ta - cash for each J-R the oPpostaR majority on the however, depemtant on rtnet come nnder heavy fire at the 

j not pohee, firing rubber . .. .. Airco. Board. conditions. Th^ include JUreo Airco shareholders’ meeting to 


ec&fl 



t aoipoace, nimg rifuma . . ^ Rark- Paee ■ Airco. jooara. iwuwua. *u«, iWW i,vib«icu Airco snarenoiaera meeting to 

, and smoke^bombs,-Cla*edr snar r, "r- : It said that as majority sljare- winning a litigation with BOC be called "early in May to decide 

. diz with- 'several hundred ^ OCEAN TRANSPORT , second bolder it was chan^ng the bye which would prevent BOC voting 0D tbe Martin Marietta bid. 
rihen on. strike' for motepay; ba £f pre-tax profits were halved taws of Airco to require that all the 15 per cent, holding and thus some evidence of the pressures 
♦a*,, . Mark '• gftglllp fi, 29- ' from' f2flj.4m.-to £12J9m. bringing directors be present to make a remove its voting: majority- already building up emerged 
osbazid '.'of Princess Anne* is due the figure for the whole of' 1977 quorum for a Board meeting and The trial of the law. suit is to-day- when the State of New 

» appear at Row. Street court on down to- £39J)Sm. (£4L2m-)- tbSJ all- -Board decisions be due tn begin in Dellawgre on Jersey .Bureau of Securities 

onday " accused of speeding in Hage 30 and Lex - uzmimous. It also said it. was April 10. called on BOC not. to excercise 

ShitehslL ' • sliolistog all .Aireo Boar^ coai- Martin Marietta has also put a its voting rights -acquired since 

. ^rutenau- ®- SWBj ^ ' ■ time. limit, on its offer, requiring January' 4, this year. 

4rin<>m Maraaref IS-lti bed Wltn -vnnndprl - D re- tax eanUDSS 10 . " ■ ■ . . ■ ... 0 



Princess Margaret ls;in bed with landed '- pre-tax earnings to 
■ - ■ ' u at Wlndsor-Castiie. -. -••• £755m. (£5B4m.) in the second • 

, h - Watme ■ the actor' tinder-- half, advancing profits for the — ■■■ ■ ■ 
"" ■>’ t airserv in year to January 28 by. £2., 72m. 

‘ ' ..- ro rno&n: on sales of £166.47m. •/ 

- “ (£-140.61m.). P»e« W aad l^x . 


m,- 

& & 


WHERE MOTE WORLD WILL 



CONTENTS OF TO-DAY’S ISSUE 


pJHIEF PRICE CHAR6ES YESTERDAY 

"..i 1 ' PricK in imA im lea oth««l* 

indicated) BZ wus._ 




'RISES • 

^ ishop’s-Stares ^ 

ii> rown aad Jackson--’ 57.+ 4 
16i .+..3 

* hahneT ^Tunnel. - 59 + 16 

omhen Group-' j»- M + .'3' . 

.ms 

Moat Houses 30+ 21 
X^itardo Engineers- 139 -+ « . , 


1» + S 

EZ tads. - 175 + 10 

FALLS 

Berkeley Hambro ... .92-4 
Bo wring (C. T.) 5 


m \\(C$ .^rattan - ^ar^ou^ l29 I t ' - ^ - .-"^reSd ’ - 9 

# f ” isl + 8 : Shell Tfranmort 7’ J 

It" - . w •J^-mardO Burtneers- 1® ;+ • ... D^Beera Dfd, ..^..337xd - 13- 

.. ^>^v;obfirtsoib.Faod^ 1J« +•«;. i— u 215 . - 20 

- • fe -rrr.riios+4. - v l 


EC Cases — 12 “ -2 

Furness Withy 230 -5 
Gt, . Portland Estates 278 ‘-■12 

MEPC J13 — 7 

■Mills -and AHen tatnL 1® “ | 
Rowntree MiacKtatosh 380 - 5 . 
SttthmN/y,. ® - 9 - 

.gy Wt.W , -»-«» ■ -f 

-.Shell Transport •■•51&5d — 7 
Sjebens (UJK1). — — 252 - 6 * 
London Sumatra • ... J33 — . 12 
De Beera Dfd. ..Ji..32^d — 13-; 


European news • 2 

American news - 4 

■Overseas news 3 

World trade news : 4 

Home news— general 5-6 

• ’ —labour 9 

• —Parliament ... ID 


Grays Building Society 
casualty 


Technical page 11 

Management page 12 


IntL Companies 32-33 

Euromarkets 32 


Arts page 15 Wall Street 34 


Society To-day 

Appointments 

■ AppofflUnents Adwts. 
Bnsteflcs oppo 

'.CnHSjmnl — ... 

.EirtcrtiiliiiiiBnt CnWo 
FT-Actmriea indices 

Latters 

' Lax — 


Leader page ...» 16 

UJL Companies 30-31 

Mining 31 

. FEATURES 

Caricom— Plans and aid' 

problems 4 

Film and Video 14 

Romania’s economic policy 2 


Foreign Exchanges 34 

Farming, raw materials ... 39 
UJL stock market 40 


F.T. SURVEYS 

Italy 17-26 

European Option 
Exchange :.35-3S 


-In 60 countries around the world, almost anywhere that you may 
want to do business. In Kenya, tor instance, we are a ion^-esublisiiedpatt 
of commercial life, “with 34 branches right across the country. 

' ^en you use Standard Chanered for your Kenyan business you. 
save yourself money and time, because our U.K. branch nearest to you 
will contact any of our Kenyan branches direct. There will be no 
intermediate banks or indirect delays. Ring Keith Skinner on 0T623 7500 
now to hear more about this. 


lASlblHf 

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Financial Times TUssdlay . April 4 1975 


i r r ' - 

/ ' 

> ■ 


French Parliament 

inaugurated 

with a roll of drums 



German engineering workers settle for 5% pay risZ c 

BY ADRIAN DICKS **■ - ' ; v ^tjr * 

rfi! WEST Herman fiftvora. tn Ha on^nnui v.Mh «... mxW ..t ...... —'x .. ®ONNJ April I ■# 


0 lCt 


THE WEST German Govern- to be endorsed both by the rank- employers' to prove fully the ease As a result further 
ment’s target of a maximum and-flle of IG-Metall, the en'gi- for downward recJassificlatinrr a 


downward reclassiflclatiomA cati ?? are not contract, on which discttsi 

«. - P r pa, a Sr?? c on ih1 Sffi3.“«£?SJSS2U^ «■« «* 


BY DAVID CURRY 


PARIS, April 3. 


im&ssrsssss =r “•=« ^/.ssss-ii,^ 

iraeed eariv this moraine in *!*““ by « mpames. These Both- IG*etall and the em- dried™ ' " vlItn * Uy Bidered unlikely that IGtfetalL S*e from May 1 isjmten 


THE DRUMS of the Garde 
HepubJicame rattled into sudden 
life. The packed galleries 
(strained forward and the MPs 
stuffed their newspapers quickly 
under their desks. 

M. Marcel Dassault, dressed in 
a long morning coat, mounted 
the steps and settled Into the 
red-and-gilt Speaker’s chair 
surrounded by the six youngest 
members, all 30 or below. 

Tlte sixth National Assembly 
of the Fifth Republic entered its 
inaugural session. M. Dassault, 
octogenarian, flfP for Beauvais, 
talented aircraft-designer, re- 


ROYAL Dutch Shell, charterer 
of the oil Lanker Amoco 
Cadiz, has become a prime 
target of environmentalist and 
other groups who are enraged 
hy the damage to Brittany's 
coastline, writes David White 
from Paris*. The group’s 
French subsidiary. Shell 
Francaise, which has borne the 
hnznt of the attaek — a cam- 
paign to boycott its petrol— is 
Just as angry. The company Is 
suing a consumer protection 
society, Union Federate des 
Consommateuvs. for Frs.Im. 
(about £115,000) for urging 
customers to ostracise Shell. 


putedly the richest man in 
France, Gaullist by conviction 
and business, was exercising bis 
right as the oldest member of 
the Assembly to take the chair, 
and to preside over the election 
of a Speaker. 

The 491 members sit according 
to alphabetical order irrespective 
of party or experience. - Almost 
a third of them are first-timers. 
M. Jacques Chirac, hunched on 
the bench. Gaullist leader, kept 
company with M. Jean-Pi erre 
Chevenement, the leader of the 
left-wing of the Socialists. M. 
Michel Debre. the first Prime 
Minister of General do Gaulle, 
found himself In company with' 
M. Gaston Defferre, the ebullient 
Socialist Mayor of Marseille. 

Ail MPs are voting. The new 
Government has not been 
formed. Aod, as a result, the 
Government benches were empty. 
The ex-Ministers can vote as 
simple deputies— some of them 


for the very first time — including 
M. Raymond Barre, Premier- 
designate. 

M. Dassault, in his catarrhal, 
slightly nasal voice began “I 
want to talk about unemploy- 
ment." He spoke of the threat of 
imports and of the problems of 
Industrial financing. He called 
for a great Universal Exhibition 
in Paris in 1980 to attract 
tourists and foreign exchange 
And he proposed a Wealth Tax 
to go into a special state invest- 1 
ment fund. 

The job of Speaker is being 
contested. The Gaullists nomi- 
nated M. Edgar Faure, 69, the 
previous Speaker, as the party’s j 
nominee. I 

But M. Jacques Chaban-< 
Dcimas. a Prime Minister under 
President Pompidou, and for 111 
years Speaker of the Assembly, | 
is also seeking the job. As a; 
glorious grande finale to a dis- 
tinguished if ultimately dis- 
appointing career or. at 63, as 
a new springboard to a bid for 
the presidency in 1981? He didn’t 
say. 

The first-round vote was an- 
nounced. Chaban 153: Faure 
136; Pierre Mauroy (the 

Socialist) 112; Maurice Andrieux 
(the Communists) 86. 

M. Faure. blinking back 

bitter disappointment from a 
strained face, withdrew and 
made Cba ban's election a cer- 
tainty to resume the position of 
Speaker, which will make him 
the fourth man in France 
behind the President, the Prime 
Minister and the president of 
the Senate. 

He was elected with 276. 

against 112 for M. Mauroy and 
85 for M. Andrieux. 

Reuter adds from Bonn: Secret 
talks yesterday in France be- 
tween West German Cbancellor 
Helmut Schmidt and French 
President Valery Giscard 
d'Estaing dealt exclusively with 
curency issues, the Chancellor’s 
chief spokesman. Herr Klavs 

B oel ling said to-day. 

He added that Herr Schmidt 
believed the problem of con- 
tinuing currency unrest should 
be on the agenda at the summit 
conference here in July of the 
seven leading non-Communist 
countries. 


agreed earlv this moraine in - - ujr *««« coin lu-aaetau and the em- dried un . — — - svaered unlikely mat iu-Metau, num may i is unten 

StuttBarL In their reactions to Pf ovl “° T, ®» considered a break- ployers’ leaders expressed satis- • P ' V after spending an estimated Reuter reports from Esseit 

aiuugart- in Uieir reacuuos lO |W r Q U o4, k v hfltVi eir(f»e havp been fnnrtnn a* «-h«» Urrm. .1 , This TnrtrntTiCiV caKItmunt will* nunuiw. nr. MV mill urnmt m-i V/-.T.T-, . .. . 


the deal however the two coali- by ^ sldes - have been Action at the terms of the deal. morning's settlement will DM200m. on strike pay, will want The IGBE said it win , 

HmiStte!! Bonn emnhasised 113,16,1 33 *** first t0 However, the strike by some “<* automatically be adopted by to push matters to the same the claim for about^M 1 

n 0 f 6 thSSeek protect the international com- 90,000 union members and the other wage negotiating regions point in any other regions. Simi- workersin its Ruhr -* 

SrikeSim lockout peU l lty West Gennaa lndus ‘ retaUatoiy employers’ lockout of » *e engineering industry, lariy. the settlement is likely to Aachen and IbbenbuS 1 ; 

nrami one of the 1x7 by a,lowin e new investment, a further 140,000 workers are ex- although it is bound to Weigh serve .as -a yardstick once again as well as calling forTwd 

lnnaest aS mast rastlvindiS y< 2 providing the people directly pected to continue for at; least very heavily on them. As on other industries still m the working week to I) from 
S “disSSSa nSt-war We^t aff T ecIed J ^ th a “ wft lading." two more days, pending ballots several occasions in the past, the stages of bargaining. in conthmaus-woi* pSSs so 

tWar W6St ^ addition, the deal will of the union rank-and-file and North Wuerttemberg-North For federal and local power stations and coke*™ 
German experience abolish ^ ^ present further deliberations by the em- Baden ' area has br okra.- new govSniSte, tte wMtetto No date for ne-rtSta 

The settlement, which has yet wage categories and will require ployers. _ ground with the wage classlfi- Sat of the public service wage yet been fixed. ^ tiadoru 


The settlement, which has yet wage categories and will require ployers. 


Bonn may act in dispute 
over Thistle oil disposal 




BY JONATHAN CARR IN BONN AND RAY DAFTER IN LONDON 


TheH&B^ear. 







THE WEST German Govern- 
ment may step into the row 
between the German oil group, 
Deminex, and the British Govern- 
ment over exports of North Sea 
crude. 

However, for the time being 
the Bono Government is keep- 
ing a low profile in the hope that 
Deminex can resolve its own 
difficulties resulting from restric- 
tions on the use of its North 
Sea production. Deminex has 
been refused complete freedom 
in the disposal of its share of 
Thistle Field production: it has 
been told by the British Govern- 
ment that a large proportion 
must he handled in the UJK. 

The Germans are anxious that 
the matter should not inflate 
into a further political tussle 
with the British along the lines 
of the EEC fishing dispute, in- 
volving a collision between the 
interpretation of national and 
European Community rights. 

Nonetheless, two important 
elements are involved ,in the 
matter: one of West German 
energy . policy in general, the 
other the readiness of West 
German industry to increase in- 
vestment in Britain. 

Bonn has given its support to 
Deminex to seek oil world-wide 
and to help secure supplies for 
West Germany, which has to 
impart almost all its needs. 

High hopes have been set in 
particular on the Thistle Field, 
where Deminex is the largest 
single shareholder with a stake 
of more than 40 per cent Months 
ago. Deminex was told by the 
British it could directly export 
only 50 per cent of its supplies 
from the field to West Germany. 
The other 50 per cent, would 
have to be landed in Britain. 

The British side evidently 


feels it was being generous in 
offering even this deal Deminex 
felt otherwise and continued to 
hope for considerably more. The 
British now appear to have 
dashed these hopes, insisting on 
50-50. 

The second point regarding 
investment involves Veba. This 
is West Germany's biggest com- 
pany in turnover terms, the 
Federal Government has a large 
stake in it — and Veba has a 
majority stake in Deminex. 

At least part of Veba’s hopes 
for better results in the oil 
sector tie with the ranting on 
stream of supplies from Thistle 
via Deminex. It is thus clearly 
concerned, at how the current 
problem is resolved. 

Further, Veba is one key con- 
cern which the British Govern- 
ment is seeking to impress with 
the benefits to be derived from 
investment in Britain. It is no 
matter for surprise that Veba 
itself sees a connection between 
the British attitude to the land- 
ing of North Sea oil and of its 
own attitude to further' invest- 
ment in the UJC. 

The exporting issue has been 
brought to a head with the pro- 
duction start-up on the Thistle 
Field. Some 125,000 barrels of 
oil have already been loaded into 
a tanker, although the produc- 
.tion programme has been frus- 
trated by bad weather. The first 
cargo will be handled by British 
National Oil Corporation which 
has a 21 per cent stake in 
Thistle. 

Negotiations over the export 
of Derainex’s crude have lasted 
for several months. Within 
Whitehall it ^pointed* out that 
Deminex’s special 1 position has 
already been recognised in the 
special conditions attached to the 


group's state participation deal. 
Under this agreement, Deminex 
will .have 'the unique right to ex- 


port about 50 per cent, of its 1 
crude. When BNOC's option to ' 
buy up to 51 per cent, of , 
Deminex's crude takes full effect | 
in about five years time, thei 
German group will be able to 
export the whole of Its remaining 
share. 

At first the U.K. Department 
of Energy insisted that Deminex 
should land its initial cargo of 
oil in the U.K. which would have 
left the company free to export 
the second cargo to West Ger- 
many. Apparently Deminex— 
which was not available for 
comment yesterday — asked for 
this rating to be changed and 
sought permission to export its 
initial cargo. Permission for this 
was granted on the understand- 
ing that the second cargo 
remained in the U.K. Deminex 
is then reported to have told the 
Department of Energy that this 
was not possible as it had under 
taken commitments for the 
second load. 

The position remains that the 
Department of Energy Is now 
waiting for Deminex to decide 
which of the first two cargoes 
will be exported. 

At the heart of this dispute 
is the Government's insistence 
that Britain has sovereignly over 
its oil. But the issue is' also 
linked with another controversial 
policy concerning the use of 
North Sea oil in U.K. refineries. 
Energy Ministers are insisting 
that two-thirds of North Sea oil 
must be refined in' domestic 
plants in spite of protests from 
the oil industry. Oil companies 
claim that products produced by 
UJK. refineries do not need such 
a high proportion of premium 
crude oil that comes from the 
North Sea. They further clainl 
that the. British Government’s 
adherence to the two-thirds rule 
is eroding the premium value of 
the high quaiity UJv. oaL 



U.K., Ireland blocl 1 
fishing agreements 


BY MARGARET VAN HATTEM 


Brezhnev 
on China 
border visit 


From the President's Reportto the 
Annual General Meeting. 


Progress 

“In 1977 our assets 
Increased by £83 million 
to £497 million. Iam happy 
to 3i mounce that we ha w 
now lopped the £500 million 
mark... 

FirstTime Buyers 

" During the year the 
Society advanced a'recqrd 
sum of nearly £90 million... 
Approximately 40 ofall 
newloans were to people 
buying their first home..." 
Increased Membersh ip 
"...67000 new 
investment accounts were 
opened, andat theendot'the 
year the total amount invested, 
by more than 274.000 share- 
holders and depositors had 


increased to £463 million." 
NEW FACILITY 
ANNOUNCED 

“...investors in term 
shares may now liave their 
interest monthly This new 
service assists the matching 
oi monthh’ bills with 
monthly Income and will 
appeal to those who have to 
rely on other forms of 
imestmen ts which pay 
1 ncome once or twice a year. 
The Society isa market 
leader in this field." 

Geoffrey R. 1 timer 
3rd April 1976 


Hard line taken on EEC budget 


BY OUR OWN CORRESPONDENT 


BONN. April 3.. 


IO plb>tit ihcAiinikil 
.Aicouj 115 arv avail ibtr fituu 
Branch nftiw Sndeiy 
urimmHeadOffk’tl 



Building Society LI l I 

Hestd Oflice: Permanent House. Wsigate. Bradlord BD1 2AU 
THephone Bradford 34822{STD0274) 

Men ibcrof Tlie Huildtny Scxlctle* Aasocfeu Ion Au thnriscd JnrlnvcsUiiatt bvltiKtccs. 
iw exceed £500. OCiO.lXM 


WEST GERMANY is taking - a 
tougher line than ever over the 
growth of the European Com- 
munity budget — not least 
because of the prospect of 
mounting expenditure caused by 
the EEC’s enlargement. 

This point emerges from a 
paper prepared by the Finance 
Ministry in connection with to- 
day's joint meeting in Luxem- 
bourg of EEC Foreign and 
Finance Ministers. Besides 
setting out the German position 
on the budget it also criticises 
the Commission — both directly 
and by implication. 

The paper notes that the EEC 
budget bas grown from 2.2bn. 
Units of Account in 1971 to more 
than 12bo. for this year. And 
it says that in future, budgetary 
growth will have to be condi- 
tioned more than -before by the 
rule that it should simul- 
taneously further political inte- 
gration. ” An over-hasty growth 
of the budget towards abstract 
targets, as suggested at present. 


would not bring the Community 
forward politically," the Finance 
Ministry said. 

It welcomes a Commission 
statement that the Community 
should only be given tasks which 
it can fulfil better than national 
states alone. Bat it suggests 
the Commission shpuld also 
practice what it preaches, instead 


of proposing Community action 
in spheres where coordinated 


in spheres where coordinated 
national action would suffice. 

Concentration of resources 
and more selective! action will 
became absolutely [essential in 
coming years because of the 
huge financial burden involved 
in EEC enlargement, the paper 
notes. \ 

According to the Finance 
Ministry paper, the West Ger- 
man contribution lo the 1978 
EEC budget will eqqal more than 
5 per cent, of the wilume of the 
W. German federal budget. It 
also calculates that the W. 
Germans are b[y far the largest 
net-payers into ESC coffers in 
per capita as well as absolute 


terms — a calculation challenged 
elsewhere in the Community. 

• Hilary Barnes writes from 
Copenhagen that accdrding to 
informed sources Prime Minister 
Anker Joergensen hopes the 
summit on Friday and Saturday 
will take the first steps towards 
a co-ordinated and active policy 
for combating the international 
economic crisis. 

The Copenhagen meeting, 
however, will form a prelimi- 
nary to the next meeting of 
the EEC Heads of Government 
in Bremen in July, which will 
take place shortly before the 
world economic summit meeting. 

Currently instability will be 
one of the subjects under dis- 
cussion. But no concrete initia- 
tives for stabilising the currency 
situation can be expected. 

Other topics at the summit 1 
will include a report from the 
Danish leaders on trade nego- 
tiations with Japan, the date 
for direct elections to the Euro- 
pean Parliament 


By David Satter •. ' 

MOSCOW, April; 3. 

MR. LEONID BREZHNEV,, the 
Soviet President, visited mili- 
tary units near the SlnoSoriet 
border to-day and, underscor- 
ing the tough Soviet policy in 
the border dispute, urged 
troops to be worthy of those 
who defended the country's 
frontiers daring Die Second 
World War. 

With relations between 
China and the Soviet Union 
worsening appreciably in recent 
weeks, Mr. Brezhnev visited 
military units at pechanka 
near Chita, which is 200 miles 
from the Chinese border and 
the place where Mr. Brezhnev 
began his own military service 
in 1935. { 

In remarks apparently in- 
tended to encourage fewopf 
along the entire frontier, Mri 
Brezhnev wrote in the -honour 
book of one of the PechanW* 
units that soldiers and offiopi 
there were preserving c. the 
traditions of those wartime 
Soviet troops who ~ without 
sparing their blood,'” fought 
“the sacred fight” and de- 
fended their homeland. 

Mr. Brezhnev was on the 
sixth day of a train tour across 
Siberia. His visit to the units 
followed publication of an 
editorial in the Communist 
Party newspaper Pravda 
which effectively rejected .the 
notion of Soviet troop with- 
drawals from the border be- 
cause “ the Soviet population 
would be left without any pro- 
tection and coverage while 
Chinese troops would remain 
on the old frontiers." 

The Chinese recently re- 
jected a Soviet proposal for a 
joint declaration of principles 
saying' that troop 'withdrawals 
from the border and from 
Mongolia and recognition of 
“disputed areas"- along the 
frontier must precede any 
talks on improving relations. 
They said these points were 
accepted in a “mutual under- 
standing " reached between 
Soviet Premier Alexei Kosygin 
and Mr. Chon En-Lai Chinese 
Premier In Peking in 1969. 

The Pravda editorial over 
the week-end gave an unusu- 
ally detailed Soviet response 
to the Chinese claim, arguing 
that the 1969 meeting resulted 
only in an agreement to 
normalise relations and recog- 
nition of the need for a border 
settlement. 


BRITAIN and Ireland to-day 
blocked " fishing agreements 
.between the EEC and other 
countries, hut the move was made 
amid signs of a possible break- 
through in the negotiations for a 
common EEC fisheries policy. 

Both-, countries refused once 
again to consider fishing agree- 
ments with countries outside the 
EEC, until at least the basis of 
arrangements for sharing out the 
Nine’s own resources had been 
agreed. . 

The main obstacle to achiev- 
ing an agreed internal policy 
has recently been Brifains’ in- 
sistence on “ dominant pre- 
ference " in a 12- to 5ftmale zone 
around its coast Originally it 
had demanded an exclusive 50- 
ntile zone. 

But there were strong indica- 
tions today, at least from the 
British side, that the basis for a 
compromise may exist one that 
could be thrashed out in a serifes 
of' bilateral talks during the next 
three weeks. 

The Nine have agreed mean- 
while to continue until April 30 
the present arrangements with 
Norway^ Sweden and Che Faroe' 
Islands- which are due to expire 
on April 15. 

They will meet again on April 
24 to discuss the new agreements 
negotiated by the European 


LUXEMBOURG, Apr 


Commission with these com 
The British team s* 
optimistic that the eageroi 
the other seven to cos 
external agreements will fa. 
overcome their resistant 
preferential treatment fo 
U.K. 

The essence of the new, 
promise would be . the £ 
concept of “dominant f 
ence” which bas not yet' 
formally defined. 

It Is understood, howevej 
Britain wants permanent 
to its quota granted this 
in this zone, plus about a q 
of whatever increase it 
stocks may result from, c 
vation measures. 

British officials would 
confirm - today whether 
definition had been accept 
the U.K. fishing industry > 
intensive talks with Wfr 
over the past few wertis 
represents a considerable 
down from the original dr 
However; Mr. John Silk 
UJv Fisheries Hinlstc 
believed to have raised tin 


me t * 

"Bfdic 


uuft luiauu uv # 

in private talks yesterda; j, . - r . T p 
Mr. Finn Olav Gandeiac'tfii*. 

EEC Agriculture and f - 


EEC Agriculture and V ' 
Commissioner, and it i-£ * 
gested he would not b'avT 
so without first testing dt 
reaction. ■ 


Portugal-IMF talks .hits 


BY JIMMY BURNS 

DIFFERENCES OVER the scale 
of the credit squeeze appears to 
be the zhain sticking point in 
negotiations between Portugal 
and the International Monetary 
Fund for a S50m. standby loan 
and the- opening of a credit 
facilities worthy 5570m. from a 
group of Western countries to 
finance Portugal’s' balance ' of 
payments deficit 

Although the negotiations are 
officially .still being conducted 
in secret, it is reliably under- 
stood that while agreement has 
been reached on the reduction 
in the balance of payments 
deficit to 5900m. (the IMF 
originally insisted that it should 
be' brought down from the cur- 
rent jl-2bn. to 5800m.), -! the 
Government believes that an in- 
crease In the bank lending .rate 
from 13 per cent to 20 per cent 
is too high. It would prefer an 
increase of about 3 per cent' . 

Nevertheless, despite some 
speculation that IMF intransi- 
gence, coupled with the Portu- 
guese Government’s fear of the 
political and so rial consequences 
of- too severe austerity measures, 
might cause the talks to break 
down,- there is a growing feeling 
that a compromise will be 
readied, -by the end of the week. 

Portugal . has, already shown 
itself prepared to meet most of 
the C'7 terms for the loan. These 
include greater control of public 
and private spending through in- 
creased, taxation, a reduction of 
1 inflation to 20 per cent, and the 
introduction of a 20 per cent, 
ceiling on wage rises. 

The IMF is believed to have 
accepted the Bank of Portugal's 
preference for gradual adjust- 
ments 'of the escudo which in 
the course of the year would 
amount to a- devaluation of 
approximately 12 per cent. 


LISBON, Apr 

Austerity is already bn . 
to bite Portugal hard. Trf._ 
and electricity costs bar; 
up by 50 per cent in tl 
two weeks, and further in 
are expected by. the end; - 
week. Many basic food ite 
almost certainly go up b 

per cent .] 

■/Meanwhilfe-iB: 1 * maJp.jfj j 
speech at the weefcend, Sr.ty | 
Csnhak the leader of the 
guese Communist Party, i 
the Government of econo. 
competence and Of tafcPji 
country towards econonwlj 
social disaster through it 
tiations with the IMF. 

He described the Goven - ^* 
policies as a “national sr- 
for allowing foreign lo . 
■strangle Portugal ais " a t . 
rope won Id a hanging mar 

Sr. Mario Soares, the 
Minister, is to outline m - 
package of austerity meas 
a speech on Wednesday ; 
debate on the Goven 
budget begins iu Parliauu 
• An intelligence expert 
in Britain and the United 
was named to-day as Poj 
new army. Chief of Stal 
a row in which two gener 
their jobs. ‘ 

He is Cavalry -General ■ 
Cardoso (52) currently in Q 
of planning a new. Fort- ■ 
intelligence service. An F 
announcement said he wi L 
sworn in to-morrow to ** 
General Vasco da Rocha 
(38), who' was dismiss! 
week by President j 
Ramalho Eanes. ' ■ 

One of his first tasks wi 
appoint a successor to cpi 
sial General Vasco L*. 
(35). dismissed as Militarj 
nor of Lisbon after being ; . 
by the former' chief of : 
indiscipline. • .. . 

Reuter ' 


M» w‘V> 


fm* * « , 


• ori 


Asan 


Bus I’.tss 

Br: 


I. & I. MUCKLOW GROUP 


MR. NICOLAE 
the Romanian pa 
President, has an 
changes of ec 
and personnel ch 
26 key officials. 


EAUSESCU, 
chief and 
unced major 
oraic policy 
geo involving 
n a speech to 


ROMANIA’S ECONOMIC POLICY 


LIMITED 


INTERIM STATEMENT 


HALF YEAR RESULTS 


Year to 30 June 


6 months to 3J December 


Gross Rentals 
Turnover 


Investment Income 
Trading Profit 


Pre-tax Profit 
Taxation 


Profit after Taxation 


Earnings per share 

* Adjusted for scrip issue 


75*77 

•1976 

*1977 

£ 

£ 

C 

7.157,138 

925.995 

■ 1.952.404 

7^5 *,498 

2.092,127 

4,330,413 

1,011,270 

809,964 

1.680.328 

103,087 

46J73 

223.918 

1,114,357 

856,237 

1.904,246 

390,000 

300.000 

735,033 

724.357, 

556 .237 

1.1C9.2I3 

2.71 p 

2.07 p 

4J6p 


the central com nittee of the 
Romanian Comm mist Party, be 
raised grave acci sations against 
some demoted to > functionaries. 
They had for feu : years blocked 
measures intendel to give enter- 
prises more edsion-making 
power and to rep ace the system 
of setting gross putput targets, 
Mr. Ceausescu 
According ta 
economic ex 
begun as long 
number of sele 


Gearing output to demand 


BY PAUL LENDVA1 IN YIENNA 


plained, 
e President, 
tents were 
as 1974 in a 
enterprises. 


The new system, |g earing output 


ering bonuses 
ine with the 
d have been 
at the begin- 
nt five-year 
officials 


★ Chairman expects second half year profits to show further 
improvement. 


★ Interim dividend raised by 20% to IJp (adjusted for recent 2 for 1 
scrip issue). 


-Jc Industrial property portfolio benefiting from improved letting 
conditions and rent reviews. 



★ 0.4m. sq. ft. expansion programme almost' completed and nearly 
fully let. 


★ Further 0.5m. sq. ft. expansion programme now commenced, 


★ End-year balance sheet to incorporate fresh professional revaluation 
of industrial properties. 


to demand and 
to workers id 
net profit, sho 
Introduced in 1 
ning of the 

plan, he said 

in charge of tbfe project had 
dragged their feet and as late as 
the end of last dear were still 
reluctant to draw conclusions 
from the experiment. Mr. Ceau- 
sescu did not mention them by 
name, but it is evident that the 
three former Deputy Premiers. 
Mr. Ion Patan, jin charge of 
foreign trade, { Mr. Mibai 
Marinescu, the planning chief, 
and Mr. Emil Dfaganescu, the 
latter's predecessor at the plan- 
ning committee, f are the most 
prominent scapegoats. 

President Ceausescu has almost 
overnight become a firm advo- 
cate of decentralisation, of wor- 
kers’ self-management, and of 
giving increased powers to enter- 
prises and their maoagemenL 
He went as far- as warning the 
plenary meeting of the central 
committee that there was a “cer- 
tain contradiction” between the 
democratic organisational frame- 
work and the overcentralised, 


rigid, obsolete, and excessively 
complicated economic 

mechanism. The new measures, 
relaxing central control and 
promising more incentives to 
workers, will be introduced in 
the second half of this year. As 
from 1979 the entire economy 
should operate on the basis or 
net output calculations and 
related measures. 

The plenary meeting issued 
detailed guidelines about profit- 
sharing, development and social 
funds in the enterprises. About 
3 per cent of the profit made 
will be allocated to these funds. 
That ratio can rise .up to ■ S-14 
per cent, if the net profits exceed 
the planned profit figures, and 
to as much as 25 per cent of the 
additional net .earnings if they 
are achieved b'y a reduction or 
material and production costs. 
Those producing for export are 
promised bonuses which could 
amount to 2 per cent, of foreign 


The measures announced and 
promised are undoubtedly the 
result of a long period of 
deliberation following a poten- 
tially explosive labour, conflict 
last summer with some 30,000 
striking miners in "the Jiu 
valley. Many organisers .of the 
strike were subjected to re- 
prisals. Some were deported to 
other areas. But Mr. Ceausescu 
has evidently realised the 
ominous implications of the 
growing resentment against a 
heavy handed ' central 
bureaucracy. 


exchange revenues achieved be- 
yond the planned targets. 


yond the planned targets. 

The. Romanian Parliament has 
enacted a new law which says 


that proposals, applications and 
complaints lodged by citizens 
must be. answered within 20 to 
40 days by the local or central 
authorities. No one may be ha- 
rassed for making complaints. 
Local officials and even Cabinet 
Ministers should set aside one 
day every week to receive 
ordinary citizens to deal with 
their personal problems. Deputy 
Premiers should do so twice a 
month. 


One should not exaggerate the 
novelty of the much publicised 
policy change. To start with, 
all these measures were in- 
principle approved as long ago 
as the national party, conference 
at the end of 1967. After 
repeated postponements of the 
relevant legislation and a shift 
in favour of alhout quantitative 
growth, the former Premier, Mr. 
Ion Gheorgbe Maurer, issued a 
public warning in a Speech 
delivered in June 1972 at a 
party conference In Cluj, recall- 
ing the advice Lenin gave in 
his last article:' “Better less 
quantity— but better quality.” 
His speech was published in the 
local press only, and all those 
who tike Mr. Maurer or the 
former Deputy Premier, Mr. 
Alexandra Birladeanu, raised 
their voices against preferring 
quantity to quality and against 
channelling over one -third of 
the gross national product into 
investment, have had to leave 


the political stage, 

Mr. Ceausescu still insists on 
the priority of the investments 
and defends by far the highest 
investment ratio in. eastern 
Europe as a -means towards 
catching up with the T highly 
developed industrialised West 
Yet ids latest speeches indirectly 
seem to confirm nagging doubts 
about the relevance of some of 
the statistical victories claimed. 

The country was hit on 
March 4, 1977, by a severe earth- 
quake which cost almost 1,800 
lives, destroyed 3,300 flats, seri- 
ously- damaged hundreds of 
factories, and caused, according 
to official figures, damages of at 
least S2bEL YetVat the end of 
that year 'of -natural tragedy, the 
planhsng report proclaimed that 
Romania hid,: if anything.- Sur- 
passed the original plan . and 
that ‘industry increased its out- 
put-mot by the projected 
per pent, but by no less than 12J5 
per pent - While- stiR repeating 
theses' figures, -Mr, Ceausescu has 
beghft to- ware that many fac- 
tories- have' been ..iisihg costly 
materials only to. claim the fulfil- 
ment of the gross output targets 
as well , as the bonuses that go- 
with. it. ATI this leads to . an 
Illusory increase, of production, 
and the distortion' of economic 
realities, he remarked. . 

la.-..:* political -/ sense. Mr. 
Ceausescu is . faced vdlh fhe 
dilemma * of how ‘ to . combine: 
economic •jeffideney and a modi- 
cum j>f atttonopiy in- enterprises 
with the continuing dominance 7 


of the" all-pervading P™T 
remains to be seen ■wam* 
economic sfatog-rieaa™ 
reform programme 
more tangible -divwfcnw 
long forgotten. soml ar P 
hailed . with equal enta 
just over ten years ago* 


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1 cv lu *-“ftuer- increase the pres- 
Cb -*re on Mr; .Menahemi BeginT the 
■ '^.nme Minister; to he more fiex- 
-]e m the Middle East peace 

1 A meeting of. the party’s 

lAifiSLi JeWS 1 ***® last night 
^ JCm Begin s claim’ that 
V\N Resolution 242 does not caU 
rLr£ el l withdrawals from the 
_ i ®st The committee’ also 

H* -manded that settlement in' the 
territories be 
lilted while there are negotia- 
r,T-[. ( . ons with Egypt. ; 


ons with Egypt. . 

r - ■ > Many participants called on the 

ir, • ”h **ty to quit the government 
while others were highly 
-*iticar of the performance of 
^eir • representatives : In - the 
-abinet. ' v- 
**?■ The party leader,. Professor 
r/“ ■■‘•■■I ■* T4 .^^*ga«l Yadin, who is Deputy 


tmue, it would be wrong to leave 
the coalition. . But hfc-did promise 
to. return to the committee 
“within four or five weeks" to 
ask them to reconsider the mem- 
bership of fee government if it 
U dear that the peace talks have 
irretrievably brokqip down. 

Even without fee DMC, Mr. 
Begin would have a narrow 
zzujontr in the Knesset but the 
departure of fee centre party 
would weaken further his claim 
tb represent fee broad consensus 
of. Israeli opinion. rp_ 

• UB. Ambassador to .Israel 
Samuel Lewis called on Mr. 
Begin this evening.. t,o explore 
ways of keeping: peace talks 
active.. The next probable step 
in Egyptian-IsradU contacts, Mr. 
Lewis said, was another trip to 
Cairo by Defence Minister Ezer 
Wetzman “in the next week or 
so." • 

Xfcsan Hljazi writes from 
Beirut: French troops currently 
forming the backbone of the 


weapons to make their role more 
effective. 

Sources close to the troops 
said the equipment will include 
armoured personnel carriers and 
anti-armour rockets. Palestinian 
sources said the troops, number- 
ing about 800 already have rocket 
launchers. . 

According to eyewitnesses, the 
Israelis are digging in fof what 
appears to be a long stay. 
Observers said feat judging by 
fee new fortifications built since 
fee invasion began two weeks 
ago, the Israelis do not intend to 
withdraw in a month or even two. 

I In Tel AviV, however, an Army 
spokesman said that Israel had 
begun thinning out its forces in 
southern Lebanon.' The spokes- 
man said that Israeli forces had 
begun, a week ago, wbat he 
called a significant thinning out 
of troops from the area. He 
said that the withdrawal time- 
table was being co-ordinated 
.with the UN forces.] 




, Ut BY. KENNETH RANDALL 1' 

,^S5wht DOCTORS ‘ and 73“ 
~ ii^y^cm.bers of the Greek com- 
“’■'T ‘'tunity in Sydney were charged 
• <,I a Sydney Central Court to-day 

*js.;:** ‘“ith conspiracy in an alleged 
. ‘*ud over pensions which is 
; " ,,*^Blieved to have cost the- 

: fc .< '-Australian Government $A42m. 
'.leaver the past seven years. 

. extent 0 f the fraud 

- 0 . 41,8 tould be much higher as Federal 
/ - fttolice investigations continued; 

— -wjfl*. police spokesman sald to-night 
“ 1,000 people are . likely to 

- -d: j^e charged wife involvement in 
fraud.’ . ’ : - 

’ The scheme involves the issue 


$A42m. medical fraud in Sydney 


Q ti’ ! ; ■> 

! j ’■»' 1‘ 

•’a’LCV - 

Ji-.ni:.-:.. 

ii-f.r 

; 

ales.*::.? 

”.r-r 

i 


of false medical certificates 
which were used to obtain sick- 
ness benefits and Invalid pensions 
from the Department of Social 
Security. -'Police alleged that fee 
fraud had netted recipients, 
agents and doctors more than 
$A6m. a year since 1971. 

They said feaf : four agents 
within the Greek community had 
been receiving SA1.G00 each 
time' they introduced a new 
member to the scheme. Members 
were then given' medical ; certifi- 
cates saying they were unfit for 
work for three’ •months. * They 
used fee certificates to claim 


r 

. 1 :: \ - 


3Row over aboriginal land 

^ * BY OUR OWN CORRESPONDENT . . CANBERRA. April 3. 

■ ’HE Australian Federal Cabinet been anxious to develop for some 
- - 3-day reaffirmed its intention of ti^e- ‘ " 

moduli 'emergency leeijla- 

* LM 0D to prevent the State Govern- over ontrpl of Preserves in 
, I] Rient of Queensland from taking recekSve<*s hasAMi regarded 
tinker fee administration of two" & m importaht prifc&er : to future 
£-.\ aboriginal, reserves in Northern policy on mineral . developments 
.. .. instraHa. •• » ' wilhinJ aboriginal l^serves and 

The reserves are Aurukun and tribal areas. ■” • ' f*'f 
“'■^omihgtoh Island in the north Tbe’ extensive . pifflalum dis- 
Queensland. Aurukun indnde&‘ coyeries ioi the Northern Terri- 
U^^xtensive bauxite deposit wiilciT tory would- -be ^•'affected 

..: .he Queensland Government haS^ significantly by:.,tbe (pmcome. 


■ - ..MV'L 


CANBERRA. April 3. 

sickness benefits of about $A100 
a week. 

According to fee police, the 
certificates were renewed every 
three months or else after a 
year fee member could pay 
another SA1.000 for a false 
medical history which was then 
used to obtain a permanent 
invalid pension. 

They said that most of the 
alleged illnesses claimed mental 
disorder. During the process, 
the doctors’ fees were claimed 
back against Medibank. fee 
national health insurance 
scheme. Tbe doctors charged to- 
day included a clinical psycholo- 
gist; two consulting psychiatrists 
and two general practitioners. 

• Five other GPs were said to 
be involved. The prosecution 
said it would be alleged that fee 
doctors charged to-day bad re- 
ceived A$1.5m. from fee scheme 
iii fee past 12 months. 

Many of the others charged 
could- not speak English and two 
interpreters worked full-time in 
tbe court as charges were read 
in Greek and English to batches 
of ten defendants at a time.- All 
the defendants in today’s case 
were granted bail and the cases 
adjourned until June 12. 


U.S. warns 
Pretoria 
over 
Namibia 

MONROVIA, April 3. 
PRESIDENT CARTER, ending 
his Third World tour to-day. 
warned South Africa that failure 
to accept international proposals 
in Namibia could lead to serious 
Washington from Lagos. Nigeria, 
trouble with the United States. 

Mr. Carter headed home to 
with a four-hour visit to Liberia. 

The President told reporters 
on bis flight to Monrovia feat if 
the South Africans “reject a 
reasonable proposal and move 
unilaterally, it would be a serious 

indication of tbeir unwillingness 
to comply" with the views and 
decisions of the world com- 
munity. 

He said that such action by 
South Africa was “one thing 
that could precipitate more 
serious differences between us 
and South Africa.** 

The United Slates heads fee 
group of five Western powers 
trying to negotiate an inter- 
nationally acceptable settlement 
in Namibia. 

The President, in his veiled 
warning in Prime Minister John 
Vorster. did Pot specify what 
arlion the U.S. might take. 

The United States' rejection of 
n total economic embargo against 
Snuth Africa was one of fee key 
differences feat developed during 
the President's talks with the 
Nigerian leader. Lt.-Gen. 
Olusegun Obasanjo. 

Gen. Obasanjo told Mr. Carter 
•on Sunday evening in an ex- 
change of toasts at' a state din- 
ner in Lagos' feat he was deeply 
concerned about “foreign col- 
, laboralion with the South 
African regime, particularly In 
economic and military matters." 
Agencies 

Quentin Peel adds from 
Johannesburg: The Soutb African 
response to the amplified Western 
i proposals for a constitutional 
settlement in Namibia (South 
West Africa) is unlikely to be 
forthcoming until the end of 
next week, according to sources 
in Cape Town and Windhoek. 

Political observers believe, 
however, that the amplified 
Western document is, if any- 
thing, further from the Soufe 
African view tban the original 
Western plan presented in New 
York in February. 

There are no material differ- 
ences between fee Western pro- 
posals presented in New York 
and the amplified plan. Both 
involve a reduction of South 
African troops in fee territory 
to 1,500 within 12 weeks of the 
plan being approved by fee UN 
Security Council, - 

Men and Matters, Page 16 


NEW INDONESIAN CABINET 


Shift towards military 


THE NEW Indonesian Cabinet, 
announced by President Suharto 
last week after his re-election as 
the country's head of slate, 
further tilts the balance of power 
within the regime in favour of 
fee military. Although this 
marks a growing preoccupation 
with problems of internal 
security, key economic ministries 
have been left in fee hands of 
the mainly U.S. educated tech- 
nocrats who will now be respon- 
sible for drafting the aew five 
year plan due to begin in April 
1979. 

Over half of the 24 ministers 
are new. But President Suharto 
bus skilfully left htmsult the 
traditional Javanese rule of 
“ dalang " (puppeteer) over his 

colleagues in spile of tbe often 
violent protests against bis rule 
since the end of last year. 

Tbe new Cabinet reorganises 
fee 17 Government ministries 
under three new “ mega- 
ministers." General Maraden 
Panggabeun (formerly Minister 
of Defence) will nuw run the 
overseas departments of foreign 
affairs, justice, information, 
defence and Interior. Prof. Wid- 
jojo Nitlsastro, continues in 
charge of economics, controlling 
finance, mines, trade, agriculture, 
communications, industry and 
public works. General Surono 
Reksodimejo, former assistant 
Chief of Staff of the armed 
forces, takes over the ministries 
of health, education and culture, 
labour and transmigration, 
religion, and social affairs. 

Gen. Pangga bean's new role 
reaffirms a continued conserva- 
tive military-dominated policy in 
most security matters, whether 
domestic or international. As 
one of Suharto's closest allies, 
fee general is likely to bolster 
basic hard-line policies against 
government critics. 

One important shift is tbe 
rise of Admiral Sudomo. 
former Chief of Staff of 
fee all - powerful Command 
for Security and Restora- 
tion of Order (“Kopkamtib"), 
to assistant Chief of Staff of fee 
armed forces. Besides holding 
fee. third highest military posi- 
tion. the Admiral will also be 
commander of Kopkamtib, a post 
held since fee so-called “ Malari " 
riots in January 1974 by fee 
President himself. 

Most domestic security threats, 
including arrests of dissident 
students. Is handled by Kopkam- 
tib. Taking over from the 
Admiral as Chief of' Staff of 
Kopkamtib is Lt.-Gen. Daryatmo. 


BY GUY SACERDOT1 IN JAKARTA 

formerly chief of the defence 
department’s civilian affairs. 

Two other powerful Suharto : 
supporters remain under Gen. 
Panggabean’s control — General 
Amir Mach mud. Minister of the , 
Interior, and General Mohammed 
Jusuf. Minister of Defence (for- 
merly Minister of. Industry); 
Both of these men were instru- 
mental in paving the way for 
Suharto's rise to fee presidency 
in 1966, using their influence 
within separate regional military 
commands. Their continued t 
appearance in fee Cabinet 6hould 
help to maintain army support. 

Another longstanding Suharto 
advisor, Lt.-Gen. Ali Murtopo, 
received a Cabinet portfolio for 
fee first time. To observers, fee 
most effective political manipula- 


General Panggaben’s 
new role reaffirms a 
continued conservative, 
miltary-dominated policy 
in most secruity matters, 
whether domestic or 
international. As one of 
President Suharto’s 
closest allies, the general 
is likely to bolster basic 
hard-line policies against 
Government critics. 


tor in the government. General 
Murtopo's role as Information 
Minister is in part viewed as a 
means of keeping a politically 
dangerous man in check. Bargain- 
ing for fee more influential 
foreign affairs or interior minis- 
tries, fee information position 
relieves political elements wor- 
ried at fee possibility of a resur- 
gence of fee general’s past 
influence. 

Though Murtopo's new role is 
somewhat less powerful than 
expected, another man closely 
associated wife General Mur- 
topo's think tank, “the Centre for 
Strategic International Studies." 
Mr. Daud Joesoef. has become 
Minister for Education and 
Culture. 

Military men more critical of 
fee Suharto regime also found 
posts in fee new Cabinet General 
Surono Reksodimejo, one of the 


mega-ministers, has support 
among various army groupings. 
For the past year or so. he has 
been .considered a strong candi- 
date to replace Suharto should 
he retire before his new five-year 
term is completed. 

Lt-Gen. Alamsyah. formerly 
vice chairman of the President's 
advisory council, will take on the 
Ministry of Religion. As one of 
fee . more outspoken military 
critics of fee President's develop- 
ment policy and well-respected by 
student- dissenters, GeneraJ Alam- 
syah lakes over the department; 
where coordination with fee 
opposition Muslim Party is 
crucial. 

On the economic front, the 
technocrats appear to have lost 
some ground, to men wife a 
practical outlook. The Govern- 
ment’s transmigration scheme 
(designed to relieve population 
on overcrowded Java) has been 
receiving increased budgetary 
support The former West 
Sumatran Governor Barun-Zain 
takes over the Labour and 
Transmigration Ministry. And 
to heighten domestic industrial 
development and co-ordlnatian 
between industry and invest- 
ment, Mr. A. JL Suhud, former 
vice-chairman of- fee Investment 
Co-ordinating Board, has been 
named Minister of Industry. 

Dr. Sudarsono Hadisaputro has 
the agricultural portfolio, one of 
the most -important economic 
positions given Indonesia’s un- 
even crop performance since 
1974. Last year, Indonesia 
bought one-third of fee world's 
total rise crop, and increased 
production vtill be Sudar- 
sono’s top priority. 

As former bead of a highly 
successful agricultural intensifi- 
cation scheme, he should prove 
extremely capable. 

Indonesia’s finance team and 
economic planning board remain 
intact, accenting Suharto's satis- 
faction wife their performance 
during the oil conglomerate, 
Pertamina, financial bail-out in 
1975-76. Dr. Ali Wardhaoa re- 
mains Finance Minister with 
Mr. Rachmat Saleh as head of 
the Bank of Indonesia. 

Other new Cabinet choices 
are: Social Affairs— Major-Gen. 
Sapardjo (former Secretary- 
General of fee government 
Golkar Party); Suwarjono Sur- 
yamlngrat — Health; Dr. Subroto, 
(former . Labour Minister) — 
Mines: Purnomosidi Hajisasono 
— Public Works; Dr. Mochtar 
Kusumaatmodju — Foreign 
Affairs; Major-Gen. Mujono— 
Justice- 


Bangladesh 

announces 

$2.5bn. 

plan 

The Bangladesh Planning Com- 
mission has announced a 
TakaSS.Gbn. (SUS2.5bn.) draft two- 
year plan for 197S4J0, Our Dacca 
Correspondent writes. 

Of the total outlay, US$2.1bn. 
has been allocated to fee public 
sector and fee remaining 
US$400m. to the private sector. 
According to the draft plan 
5870 m, will be spent from domes- 
tic resources and approximately 
US$1. 7bn. will be mobilised 
through foreign aid. 

The plan envisages a real 
growth of 5.6 per cent In gross 
domestic product and 2.8 per cent, 
in per capita income, which will 
rise from SUS47 to 5US50J5. The 
allocation to fee public sector is 
47 per cent, higher in the two- 
year plan than development 
expenditure for the earlier two 
years. 

The plan has been prepared, 
according to fee commission, with 
objectives -of raising per capita 
real income, developing rural 
economy, greater self-reliance for 
financing development program- 
mes, increasing food production, 
and reducing fee rate of popula- 
tion growth. 

Highest priority has been 
attached to agriculture and rural 
development, which have consider- 
able growth potential in terms of 
high employment-investment but 
low capital-output ratios. The 
main emphasis on rural develop- 
ment has been in the direction 
of increasing agricultural produc- 
tivity,, particularly in the food 
grains. 

Eritrean attacks 

Guerillas fighting for fee indepen- 
dence of Eritrea, Ethiopia's Red 
Sea province, have launched two 
attacks on Ethiopian garrisons 
there, according to reports reach- 
ing Khartoum, writes Alan Darby. 
The Eritrean Liberation Front has 
been fighting at Barentu. fee sole 
town jd the Eritrean lowlands 
still held by Ethiopia. The second 
-action began last Friday when fee 
Eritrean People's Liberation Front 
attacked the highland garrison at 
Adi Caieh, south of Asmara. 

Tokyo airport date 

The Japanese Government has set 
May 21 as fee day when aircraft 
wil] begin operating at Tokyo's 
battle-scarred new international 
airport. Reuter reports. 

Mortgages for blacks 

Urban blacks ih Soutb Africa are 
to be granted “permanent occupa- 
tion rights” to enable them to 
raise mortgages from building 
societies, according to legislation 
being prepared for Parliament, it 
was said in Johannesburg yester- 
day. whites Quentin Peel, But fee 
rights will fall short of freehold 
rights. 




■v. 2 :.:t 


A period of stress and strain 
forecast for world tr^de 

' ’ 6Y CHARLES SHil^rpAR EAST EDITOR, ^IN I HONG KONG S' 


ind 


•; -.-i , A PERIOD of great stress -and 
_ • -. '-strain in world trade" arising 
• r mainly put of tension between 
- ... .-developing.- Asian .industrial 
r.: -countries and Western developed' 
c :. economies .was forecast, by .Dr*. 
' ‘ :• Garret FfteGendd. former • Irish 

.,:.\.'.Foreign Minister, to the FinSn- 
cial Times “Asian, Business 
.." ". .-l-rBriefing ” which opened in Bong 
. r • ' 5 'Jvong todayj *- 
' . Dr. FitzGerald suggested’ fee 

. ■■- i;way to deal with the crisis- was' 
. ■’ \‘-'for developed -countries to give 
ija. mandate to .“relevant inter-: 
' v national organisations " to draw, 
up an integrated noaster plan for 
. _ the economic recovery, of , the' 
‘Western world. 

He also called for much more. 
• r : ,y intra-trade ” between the* de- 
«.r- • - v .'veloping countries themselves. . . 
• ; These recommendations, were 

i l'made against a background of 
j- '"‘ critical comment in which Dr, 

. -^FitzGerald accused GATT; for 
example, of totally Ignoring tbe 
r proliferation of .“voluntary re- 
■■ >straints” on. exports from de- 
'.'veloping countries to. the West,' 
V- ; ,:. t even though" such restraint 
agreements ran directly counter 
: :V\io GATT rules:. 

; ;.i : Dr. , FitzGerald cited estimates - 

that developed- countries Stand 
^sto lose 5m. -jobs up to 1985 as 
a result of increased- imports 
from developing countries 
(alfeongdi . up- to - 2.5m. jobs 
could be created by increasing. 

1 opportunities for exports to - de- 

veloping countries). . - 
He also stressed the fact feat 
Asia was the focus of fee new- 
exporting strength of - fee de- 
veloping world. - 

. Leaving aside the special c ase 
Japan — a developed country- 
r r. ;which Dr. FitzGerald sm fl”had 
—.'■"'V' rthe power to “take onmid de- 
ivVj? stroy" any European mdustry-- 
:' 7 *. riffuir ynall Asian countries* - 
- ' ^ ^Korea, Taiwan, Bong Kong aril : 
- Singapore, ■ were, remarkably, 
,'ft nroSdfeg th* main thrust of ex-r 
Snorts tiro™ developing rounmes. 

Dr. FitzGer^d’S Sonfere picture - 

a looming worid ti^d^ 


FINANCIAL 

TIMES 


Asian 

Business 

Briefing 


CONFERENCE 


banker, Mr. Edward Harshfield, 
rice-president of Citibank, dwelt 
on the opportunities for 
economic co-operation between 
developed countries and cen- 
t rally-planned' (that' is. com- 
munist) > economies in Asia. ' 

Mr. Harshfield,' who was one of 
fee first. U.S. bankers to visit 
Hanoi after .fee Vietnam war. 
said feat Vietnam was working 
: towards' -a. sizeable reduction in 
its trade defieit daring -197S but 
advocated . a. - ’ more flexible 
approach by Hanoi towards fee 
attraction of foreign investment. 
North Korea’s -payments situa- 
tion. was also showing modest 
-signs of- improvement, thanks to 
'a decline, in* imports. 

Western and Asian business- 
men should begin to think about 
fee prospects for collaboration in 
Mongolia's mineral development 
projects, 

Three ■ speakers ' from fee 
ASEAN group of countries, Tata 
Tan Siew Sin fonner finance 
Minis ter of - Malaysia, Dr. Ltm 
Chong Ew, Chief Minister of 
Penang;, and Mr. David Sy CIp of 
fee Philippines Rizal Commer- 
cial Banking Corporation, told 
fee Briefing ’about' ASEAN 
.investment-- opportunities, wife 
fee' emphasis on fee scope for 
regional projects. Mr. Sy. Cip 
described the philosophy behind 
ASEAN’s . package , projects in 


-• ;; •>'Vhy Hong'Kong had emerged g 

; a top exporter. Sxr penyssaid. 

A Hong Kong "was. forced to export 
■>^5jor face ■■econoiricrcblMgie «fg,„ 
J? . Mi UN: ban on trade wg» £hnm 
jfc. jg denrived it of its traditional 
« jf ffiot trade in.1950. Itsjiec^ 

/y , -’coilid* be. measured by Its pjg-. 

f to-day as the worid’slSth 

jjf ^ rig* largest exporter ' (erdufeng ofl 
• r3j3 v producers) . and by fee fact 
1 : industrial workforce „ had 

p ^ risen .iewn, 60,000 - m, to 

* :ff53 .800,000. . ’ . . . . - _ 
Sir Denys listed ten reasons- 
■<2i3T’ s Hong Kong's achievement m- 

e.i " olndihgi- 1 i. • , • - 

asa ^ ce > The -convictimr that oo one 
’• lR ^ „ fd^owes us a tiring ,t .a prefeefebie 

i a .. Government; - superb, ammmmca- 

ja tions and a- stable society ia«feg 

c--ai r&Si “ party. I^litical conflict . 
z s& He ended wfe a warning that 

51®*'' nrotectitmixm could’ threaten. 


rji:3 
BtfS** ■ 



which _ two ois more 1 member 
countries of the . association 
agree' od a complementary 
industrialisation programme with 
tariff preferences attached. He 
urged’ foreign investors to In- 
volve themselves in «ich pro- 
jects. but also stressed fee need 
for investors, where possible, to 
provide tied or captive markets 
for .- tbeir products outside 
ASEAN. 

Political commentaries on fee 
Asian theme and on fee involve- 
ment of external powers were 
Offered by Mr. Anthony Law-, 
renee, the BBC’s former. Far 
East Correspondent, and Mr. 
Harvey Stockwin, a freelance 
commentator on Asian affairs. 
Mr. Lawrence posed questions 
about -China’5 newly-announced 
*' Four’ Modernisations ” pro- 
gramme, asking whether it : 
could- .be -achieved without 
“ somefeing of the spirit of Mao 
at :his most charismatic and 
reckless,” but also warning about 
the unpredictable consequences 
of - failure. . • • 

Mr.. Lawrence said .the pro- 
. gramme although stressing 
industry, could not succeed 
without a big increase in farm 
.production coming on top of 
China's already remarkable pro- 
gress in this field. He also 
wondered whether efforts to 
acquire modern weapons might 
not seriously .distort the rest of 
China’s development programme. 

He viewed Japan-UB. relations 
as being not just at a balance but 
seriously lopsided following the 
emergence of Japan’s huge pay- 
ments -surplus wife fee U.S. 

Patriotism, said Mr. Lawrence 
was tbe strongest quality of the 
Chin ese people, but nowadays it 
was * being tempered by ah 
“extraordinary amount of cau- 
tion.” 

Mr. Stockwin discussing the 
US. .role in Aria, said there bad 
been plenty of uncertainties 
about U.S. attitudes when Presi- 
dent Carter came to power and 
they had not beeo much 
diminished by fee Administra- 
tion’s subsequent action: Mr. 
Stockwin singled out for explicit 
nrifiesm, President Carter's deci- 
sion to withdraw troops from 
Korea but went on to suggest 
feat recent U.S. action (including 
a costly military exercise in the 
region) seemed to -be pointing in 
fee opposition direction .from 
withdrawal. 

< The Briefing was chaired at its 
opening session- by the Joint 
m a na g in g director of fee Finan- 
cial Times, Mr. Justin Dukes, 
who emphasised fee * “ agility ” 
of Asia in reacting to economic 
opportunities as a key to fee 
region's success. 

' Agility, - however, could not 
produce results without good 
information, Mr. Dukes said, and 
the role of fee Financial Times 
-was to provide this. 

• That Was why the paper -was 
currently embarking on a plan 
to step tip its circulation in the 
region substantially. * 




Offstage, our Doddy is no down. He's long realised that when he’s 65 hell want more than laurels to rest on. 
HeTl.want a pension that’s as plumptioiis as possible. 

Being at the top of his own profession, it's normal that he should make a largepart of his pension arrangements with 
a top company — -Standard Life, the famous British, Edinburgh based office that has specialised in the business for over 1 5.0 years. 
Nowhe mows that when pension day looms large, so will his pension. 

What Standard Life can do for Ken Dodd, we can do for you. So if you need a hand with pension or life assurance, 
seeypur insurance adviser soon. " ^ ^ 

AnJ jnm 4i» rmm try'* top pPrfnrmPrg — J. J T 5 

Hie largest mutual life assurance company in the European C ommunity . 




" American news ^ 


U.S. Steel to modify price 



Financial Times. . Tuesday .-April ‘ 4 - 197 g f* ' 


plan 


rise after Carter pressure 


BY JOHN WYLES 


NEW YORK, April 3. 


THE CARTER Administration’s 
efforts to curb price increases in 
the steel industry were rewarded 
this morning by an announce* 
ment from the U.S. Steel Cor- 
poration that the company would 
be modifying its controversial 
$10.50 a ton price rise announced 
•last week. 

U.S. Steel's original proposal 
was sharply criticised by the 
Administration because of its 
possibly inflationary impact 
President Carter, during his visit 
to Brazil, called the proposal 
“excessive,” saying that it was 
much larger than the corpora- 
tion needed to recoup the costs 
of the recent miners' wage settle- 
ment 

As soon as UR. Steel, the in- 
dustry leader, announced its new 
prices, tbe Government’s Council 
on Wage and Price Stability 
brought as much persuasion as 
possible to bear on other pro- 
ducers to moderate tbeir price 
rises. As a result Bethlehem 
Steel, the industry's number two, 
and National -Steel, the number 


three, both announced average 
price rises of $5.50 a ton. 

With other smaller producers 
following suit, U.S. Steel might 
obviously have had difficulty 
holding its new prices* and in a 
one-sentence announcement this 
morning the company said that 
its “recent. price increase would 
be modified to be competitive in 
the market in a product by pro- 
duct basis.” 

Wheeling Pittsburgh Steel, 
ninth largest in the industry, who 
had followed UR. Steel’s lead in 
going for $10.50 a ton, also made 
a similar announcement 

The Council on Wage and 
Price Stability said it was “very 
happy” about the decision on 
prices. A spokesman said Mr. 
Barry Bosworth, the council's 
director, had contacted several 
steel companies last week “to 
explain the council’s position." 
U.S. Steel had not been on this 
list of companies, but the coun- 
cil claimed last week that a $4 a 
ton increase would be sufficient 
to corer the increased costs of 


the miners’ pay deal, although 
analysts have put the necessary 
rise at nearer $5, because rail- 
way freight charges have also 
recently risen. 

Although the administration 
appears to have won this 
particular clash, most observers 
believe that the real trial of 
strength will come later in the 
year when the steel industry will 
seek price increases to cover a 
range of increased costs, includ- 
ing pay rises due to steelworkers. 

Many analysts believe that tbe 
steel companies will he in a 
strong position to impose sub- 
stantial price rises later in the 
year. 

The harsh winter coupled with 
the losses due to the coal strike 
means that most steel -companies 
are expected to return a first 
quarter loss. But this new firm- 
ness in prices, which is being 
greatly helped by the steady fall 
of the dollar against the yen and 
tbe West German mark, should 
be reflected in the figures for the 
second and third quarters. 


Tongsun 

Park’s 

testimony 

televised 


j itpan reaay 10 miy more 

from Europe, study says 


credit in 
novel plan 1 




BT LORNE BARLING 


A £2m. LINE of credit - * 
yesterday between Morgan ; 


usf 


1 


By Our Own Correspondent 


' uumesuc manset oy European is concerned ft is clainred ffiat in • jfr AbrTwaiiMs. Minister unoer.; 

WASHINGTON, April 3. *5 « &i£ Sg&J&SttjFlU oSiTSf 

a* Ksi % sss «dl ssa * 

nee dealer,- to-day spoke publicly by T ^ e , auTent imbalance. inter-industry cooperation on to Increase Imports refinance and Interest eq 

sxtsw Rr®? 1 

men! 0 ™ -? »■“ ~ tSOSrfiS SgSffi 

mar*- “ s&r mtmsb 5»as&&?- afar -SK 

EBS £sss Saudi mint vpnri.rpc 

sjsufessfsw ^ auai l 01Ilt ventures 

SSSSiS Et ^ f0T 1115 c<y foreign products,” the report by BY DOUGLAS RAMSEY . TOKYO, April 3. exports of capital good 


first time banks other Uu 
London and Scottish cl 
banks are eligible to parti 
The loan is a general p 
line of credit to finance 
pril 3. exports of capital good 
services. It will finance 
“®tween cent of contracts over £ 


Warning of high 
cost of N-power 
from fusion 


Congressmen move on rise 
in social security taxes 


i3S San rii mintvpntiirpc ffiSWSWreW 

sjsufessfsw sswffffi'jsrg ^ auai l 01Ilt ventures 

SwraSS Tetuni f0T h C<> foreign products,” the report by BY DOUGLAS RAMSEY . TOKYO, April 3. exports of capital good 

operauan. th 0 Batelle-Geneva Research services. It will finance 

Therewere few surprises in Centre said. JAPAN AND SAUDI Arabia held Undertaken jointly between cent of contracts over £ 

Mr. Parkrs initial public appear- The study was commissioned ministerial talks in Tokyo to-day Japanese companies and the between U.K supplier* 

fL"? “yss- by a group of leading Japanese and agreed in principle to push Government __ Egyptian public-sector buj 

examined by Leon Jaworsld, academics, the Top 70 Study forward on torse. bi« loinr nm. - The highlight of. Sheikh to December 3L 1978 
counsel to the Ethics Committee Group, and claims that much of . . ° n T 1 * J° uzt 'P ro ' Nazert talks, however, was re- _ 

and former Watergate special the mutual criticism over trade 3®®“ 111 s® 0 ®* Arabia. served for a much smal ler $ 15m. * . ■ • 

prosecutor.- arises from a deep-rooted failure 0 Sheikh HIshma Nazer, the project, proposed by MXTI, for /VUSlTlSi W111S 

One former Congressman, of communication. Saudi Minister for Planning, met a joint venture desalination plant „ _ 

Richard T. Hanna, a Democrat If no action was taken soon to Foreign Minister Sunao Sonoda using expertise from- MJTTs NMIHlfll (103 U 

from California, has already improve this problem, a proteo- and the Minister for Inter- Agency for Industrial Science ^ 

pleaded guilty to charges of tionist attitude might set the national Trade and Industry, Mr. and Technology. * ■ By Paul Lendval 

accepting improper payments tone for future relations. Better Toshio Komoto. • Krnpp Atias-Maschinenban of VIENNA Ap 

from Mr. Park. Last week communications at both political Japan’s exports, to Saudi Bremen has been awarded a CONTRACTS AND agre 

another, former Congressman and industrial levels were Arabia in- 1977 were $2Rbn. (up DM25m. contract by Saline Water involving more than Sc 

Otto Passman, of Louisiana, was urgently required, it suggested. 12 per cent in yea terms on Conversion in Jeddah for two (some $900m.) were cot 

indicted by a federal grand An important point made in 1976) and its imports Were seawater desalination plants each between Austrian and 

jury on similar charges. the study is that European com- $8Rbn. 1 with a daily output of 250,000 German companies durit 


Austria wins 
$900m. deals 


By Paul Lendval 

VIENNA Ap 


indicted by a federal 
jury on similar charges. 


Mr. Park said to-day that hefP ^ 65 an U governments have Saudi Arabia is keen for pro- litres of drinking water to- be visit by Dr. Bruno Kreis 


By David Fish lock, Science Editor 


BY JUREK MARTIN, US. EDITOR WASHINGTON. April 3. had ^j yen . between $367,000 and I misjudged the export opportuni- gress on the S1.5bn. to $2bn. set up on the Red Sea island of Austrian Chancellor, te 


NUCLEAR POWER stations 
.using tbe thermonuclear fusion 
— H-homb — process could cost 
several times as much to con- 
struct as the nuclear fission 
reactors of to-day, according to 
a study by a U.S. nuclear 
engineering company. 

The study concludes that 
any falare application of 
nuclear fusion will be faced 
with two serious engineering 
limitations — the very high cost 
of the plant, and tbe 
deleterious effects of intense 
radiation on one of ihe most 
critical components, namely 
the reactor pressure vessel. 

The study is based on the 
Tokamafe type of fusion 
reactor, the type to be explored 
experimentally, with the Joint 
European Torus (JET) project 
now being mounted by 11 
European -nations. 

Mr. W. E. Parkins, director 
of research and technology at 
Atomics International in 
California writing in tbe 
current issue of Science, 
estimates that, on the basis of 
present knowledge of the 
engineering problems of 
unclear fusion, fusion reactors 
could cost six 'times as much 
to build as coal-fired plants, 
and more than four times as 
much as light-water , reactors. 

Mr. Parkins gives a con- 
struction cost of $4,450 per kW 
for fusion reactors, compared 
with $780 per KW for coal- 
fired plant, ?975 per kW for 
the light water reactor, and 
51.820 for the fast-breeder 
reactor. 


DEMOCRATIC members of the 
House of Representatives have 
scheduled a meeting for Wednes- 
day to discuss whether or not to 
back a partial roll-back of tbe 
recent social security tax in- 
creases. 

Congress reconvened to-day 
after the Easter recess, and the 
suspicion is that Congressional 
misgivings about the increase 
which took effect in January will 
have been reinforced by com- 
plaining constituents. 

Mr. “ Tip ” O’Neill, the Speaker 
of the House, has already warned 
i the administration that it should 
come up with a proposal on 
social security since, he said, 
Congress was bound to act. Two 
I attempts to get such a roll-back 
through the House Ways and 
Means Committee have been 
only narrowly defeated, a num- 
ber of legislative variations have 
already been advanced, and it 
seems only a matter of time be- 
fore either the Congress (highly 
sensitive in a mid-term election 
year) or the administration takes 
the plunge. 

So far. the administration has 
publicly resisted rolling back the 
social security taxes, largely be- 
cause it would have great impact 


on the $24.5bn. tax cut and taxa- 
tion reform Bill unveiled in 
January. But the inflationary 
implications of the higher levies 
are concerning tbe administra- 
tion and some shift in policy 
may be in the offing. 

The a dminis tration can 
properly claim that tbe present 
fuss over social security is indis- 
putably the fault of the Congress. 
President Carter’s original pro- 
posals of last year to restore 
the financial strength of the 
social security health and re- 
tirement twist funds contained 
a novel provision which would 
have allowed tbe Government to 
dip into general revenues to 
shore up tbe funds. 

But Congress, apparently moti* 
vated to preserve the sactity of 
the trust funds, would have none 
of this and opted instead for a 
stiff increase in payroll taxes. 
Mr. Carter,- bowing to what 
seemed then to he irresistible 
political forces, accepted the 
Congressional version. The 
irony, is that, of the proposals 
now being advanced on Capitol 
Hill, more than one recommends 
a use of general revenues simi- 
lar to that proposed by the 
administration. 


$407,000 to Mr. Passman and ‘ m Japan, leading to neglect petrochemical complex to be Farasan. 
$262,000 to Mr. Hanna. r— 


Panama referendum hint 


BY OUR OWN CORRESPONDENT MEXICO CITY, April 3. 


One estimate puts the weight 
of steel alone required by a 
1,500 MW fusion reactor 
( about 50,000 tonnes) as costing 
more than the total cost of any 
present-day power station of 
the same output 
Tbe second big problem will 
be tbe iiegrity of a reactor 
vessel subjected to intense 
neutron bombardment, yet 
which mast continue to 
perform to high standards of 
vacuum tightness, at high 
temperatures, and under 
repeated cycles of mechanical 
and thermal stress. 


AS DEBATE resumes in the UJS. 
Senate on the new Panama 
Canal treaties, Gen. Omar Tor- 
rijos, the Panamanian leader, 
has raised the possibility of a 
new referendum to consider 
amendments to the treaties 
passed by the Senate. 

There has been considerable 
anger in Panama about an 
amendment to the first of the 
two treaties (the one already 
passed by tbe Senate) concern- 
ing the continued neutrality of 
the Canal 

This amendment claimed tbe 
right of the U.S. to intervene in 
defence of the Canal and has 
been Interpreted here as mean- 
ing a right to intervene in 
Panamanian Internal affairs, and 
not only against an external 
aggressor. 

The Senate vote on the second 


treaty, providing for the hand- 
over to the Canal to Panama by 
2000, is expected on or before 
April 26. 

The Panamanian Government 
has not so far voiced criticisms 
of the amendment, but opposi- 
tion groups, such as the Indepen- 
dent Lawyers’ Movement, have 
not been so restrained. 

Gen. Torrijos said at the week- 
end: "The Government will do 
nothing until they send us back 
the treaties which we sent them. 
Then we will see what was 
approved by tbe people, and 
what the Senate has done. Our 
answer will be given after a 
great national consensus.” 

This was taken as a hint of a 
new referendum. In toe first 
one, last October, Gen. Torrijos 
won approval for the treaties by 
a two to one majority. 1 


But the prevailing impression 
around Washington is that tbe 
Korean influence buying scandal 
may tourn out to be shallower 
than had first been thought Mr. 
Jaworski himself has said that 
he thinks no more than half a 
I dozen past and present Congress- 
men may have violated ethical 
rules. 

The pattern revealed by the 
list that Mr. Park and Mr. 
Jaworski painstakingly went 
through this morning was of a 
series of relatively small — 
generally $500 — payments to a 
considerable number of represen- 
tatives, most of them in election 
years. Many of these Congress- 
men have pointed out that they 
reported such contributions in 
their campaign documents. 

Mr. Park stated that he did 
not give any money to Mr. “Tip” 
O’Neill, the Speaker of the 
House, although he agreed that 
he bad helped to organise and 
contributed to two parties for 
Mr. O’Neill in 1973 and 1974. 

Among others who Mr. Park 
said had accepted either cash or- 
cheques for more than $500 were 
Congressman John Brademas, the 
Indiana Democrat, ex-school mate 
of Mr. Park and currently a 
House Whip, former Congress- 
man and now Louisiana Governor 
Edwin - Edwards, Congressman 
William Min shall, who channelled 
money to President Nixon’s 1972 
re-election campaign, and several 
others: hut it appeared that 
each, instance had been previously 
disclosed. 

Mr. Park made a brief opening 
statement, denying that he had 
acted improperly but simul- 
taneously apologising for 
“certain things that 1 did,” and 
arguing that he had been moti- 
vated by the best interests of 
the U.ST and South Korea. 


EEC signs 
trade pact 
with China 


Ford damages 
cut by $122m. 


By David Buchan 

BRUSSELS, April 3. 

A FIVE-YEAR framework 
agreement to improve trade 
between the European Com- 
munity and China was signed 
to-day in Brussels. Negotiated 
in February, it is the EEC’s 
first trade agreement with a 
state trading country (except 
Yugoslavia) and was hailed as 
important by both sides. 

For the Chinese, toe un- 
named spectre at the signing 
was the Soviet Union. . The 
Chinese Foreign Trade 
Minister, Mr. Li Chian g, under- 
lined Peking's support for 
Western Europe “In its union 
for strength and in Its struggle 
against hegemony,” the tradi- 
tional Chinese reference to (he 
Russians. 

But EEC External Affairs 
Commissioner Herr Wilhelm 
Haferkamp, while welcoming 
Chinese snpport for European 
integration, emphasised that to- 
day’s non-p referential trade 
accord “is directed against no 
one.” 

Danish Foreign Minister Hr. 
K. B. Andersen, president of 
toe EEC Council of Ministers, 
said the agreement would help 
to develop “the considerable 
trade possibilities ns yet un- 
exploited” between the EEC 
and China. 

The EEC will give Chinese 
goods most favoured national 
tariff treatment, with China 
getting the benefit of any EEC 
tariff concessions in the GATT 
negotiations, although Peking 
is not a member of GATT. 

In return, China is to 
increase imports of EEC goods. 


BY CHRIS SHERWH-L 


NEW DELHI, April 3, 


petrochemical complex to be Farasan. Berlin from Thursday to 

day. • - 

The most important 

More markets in India f 

opened to foreign goods SriS : 

BY CHRIS SHERWHJ."- NEW DELHI, April 3,. Germany. Work on tori 

___ projects, including a ste 

GREATER ACCESS to the Indian whether goods concerned can be mill and a fertiliser p 
market for foreign-produced manufactured locally. . beginning this year, 

goods is foreshadowed by- long- The specified fields include In all, the Austrian si 

-Jj fertilisers, newsprint and paper, submitted 55 projects. T 
awaited measures on imports and basic ^ power generation, Germans have taken Into 
exports announced here to-day., ^ distribution, the importance of medn. 

They offer opportunities in sped.- mineral and petroleum explore- small-sized enterprises 

fic fields to manufacturers in tion, c em ent and cement pro- Austrian economy. 

industrialised countries, particu- ducts, electronic components, deliveries of consumer . , 

larly Britain. petrochemicals up to the polymer such as footwear and M.'irfv * 1 

The measures, announced hy stage, and waste disposal and should notch about Se:i£j]J Li » 1 

Hr. Mohan Db aria, the Commerce effluent treatment. ($17nu). 

Minister, simplify the controls On imports generally under “ 

that have characterised, past im- .toe simplified system now being PanorlQ 1 M * f > 

ports policy and aim to harness introduced items not specifically v-alla-U.<l 

them to the requirements of the restricted, banned or “ canalised ” v . x t TCCI 

ambitious five-year plan that took (reserved for state operations) lcSS lO UiJkM 

effect at the week-end. ' will be permitted into the . . _ 

Straight competition between country. Previously, if they were U3Y,a • ... 

foreign and Indian interests will not listed they were presumed MO SCOW, A’, 

be allowed, irrespective qf banned. THE SOVIET UNION'S 


Canada sell^pt 
less to USS1 


Zambia 


By David Sitter 

MOSCOW, Ay • 
THE SOVIET UNION’S ' 
with Canada fell by 30 p 
in 1977 compared with i 
vtous year, a result of th^. 
decline in , Soviet- imp - 
Canadian grain. 

Figures released t 
Canadian Embassy sho . 


BY MICHAEL HOLMAN . released t 

• • * .. . . • LUSAKA, April «s. Canadian Embassy sho . . 

PRESIDENT Kenneth Kannda of Government and. private enter- trade turnover decline 1 
Zambia has reassured - private; prise can co-operate, said Dr. sC589Em- in 1976 to $041* : 
enterprise companies that Kaunda, were minin g, textiles, 1977, 

Government "is doing, and will building materials, cement works The va i ue 0 f Canadian • 
continue to do. everything in its and international hotels. ig77 vas gC55.4nt, r- 

power to encourage them to stay # Zambia’s Minister of Power, toe same as in 1976, h - ' 


|and help us build Zambia.” Transport and Communications, decline in exports redu 
State House officials described Mr. Paul Lusaka, flew to Dar es Canadian trade surplus - 
the speech, made at last Friday’s Salaam today to an urgent §c479.4m- in 1977 to SC30 .. 
opening of the Zambia Federa- meeting of toe Tanzama-Zambia ^b. 
tion of Employers, as an attempt Railway Authority (Tazara)J to The decline in trade - -- - 
to end uncertainty both in discuss the critical accumulation jjfce the corresponding ite • - 
Zambia and abroad over the role of .Zambian goods, including fj-S.-Soviet - trade, r 
of the private sector in the copper, at toe port, John^ worrall diminished Soviet dem* 
country’s Socialist economy. reports from Nairobi. An esti- agricultural products af - 
It also seems linked to tbe mated 90,000 tons, of Zambian 1975 record Soviet grain 
recent International Monetary goods are piled up at Dar es 
Fund credit of S390m. Salaam and the turnround time Alaarion 

The main areas - in which for -ships is nearly three weeks. rVljiiJlldll 


In return, China is to Fund credit of S390m. Salaam and toe turnround time AUa-Joti 

increase imports of EEC goods. The main areas -in which for -ships is nearly three weeks. rVl^cUdll 

~ " ~ ~ ■ ogc contract; 

Some goods for Nigeria to be inspected Jfirouipw uo 

£ BY JAMES BUXTON . J 

to NIGERIA IS to have shipments whose import is to be banned beer. It has also ended price poratibn is * 

or of certain categories of goods immediately are: beer, stout and control ..on Nigerian-produced about to sign a oUwubm 


SANTA ANA, April 3. 
AN AWARD of $I28fim. in 
damages against Ford Motor 
Company has been reduced to 


CARICOM AND LOME II 


$6.6m. by a California Superior 


Court judge in the) case of a I inspected before they leave the malt extract drinks: fresh milk; cigarettes. 


Determined to keep the aid 


SY DAVID RENW/CK IN PORT OF SPAIN 


MEMBERS OF THE Caribbean 
Community and Common Market 
( CARICOM) are making a deter- 
mined stand on the terms of any 
new Lome Convention. Negotia- 
tions with the EEC get .under 
way for a renewal of the Conven- 
tion in July and CARICOM mem- 
bers want to ensure that, at 
worst, aid in real terms does not 
fa/r below the present level. 

The 12-territory CARICOM 
qroup, especially those suffering 
from severe eoenomic problems, 
like Jamaica and Guyana, is par- 
ticularly concerned that the. 
EEC’s participation in the newly 
formed World Bank’s Caribbean 
Group for Co-operation in Eco- 
nomic Development may end up 
reducing toet amount of aid pro- 
vided to the area under Lome 2. 

The smaller CARICOM mem- 
bers: St. Lucia, St. Vincent, 
Dominica, Antigua and SL Kitts- 
Nevis, are probably more wor- 
ried than most because; as non- 
independent entities, they fall 
under Part IV of tbe Treaty of 
Rome and will have no voice In 


in the Lome negotiations; Trini- 
dad and Tobago, Jamaica, 
Guyana, Barbados and Grenada, 
and the others who also depend 
on EEC largesse, will be 
struggling to ensure that the 
present absolute level of aid is 
raised in such a manner as to 
retain its purchasing power. 

Under Lomf 1, the 12 
CARICOM states were entitled 
to some 97.4m.. EEC units of 
account (u/a). roughly 
USS119m., covering the four 
years to March 31, 1980. This 
money is channelled through 
the European Development Fund 
and is exclusive of any loans, 
soft or otherwise, made by the 
other EEC assistance institution, 
the European Investment Bank. 

About 32m. u/a of the total 
has been set aside for regional 
expenditure that is supposed to 
benefit CARICOM territories as 
a whale. Both the EEC and the 
area’s independent states agreed 
that a significant portion of the 
package should be disbursed in 
this manner, since there is 


However, finance appropriated 
to individual CARICOM 
countries will almost certainly 
be used as quickly .as possible, 
given the budgetary problems 
that each of them, with toe 
notable exception of Trinidad 
and Tobago, has beep facing for 
the last three years. 

Jamaica has received the 
largest allocation (20m. u/a) 
as the most populous member 
(20m. people) and because of 
its urgent need for funds. 

This money is being applied 
to the building of 220 micro- 
dams on the Cuban model to 
alleviate the island's serious 
water problems and to rehabi- 
litate 2,000 acres of the second 
most Important export crop, 
bananas. 

Guyana is receiving 14m. u/a 
for a fishing port complex, for 
supporting the establishment of 
small- and medium-sized indus- 


Pinto car which efa 
caught fire in 1972, ik 
person and burning an 
Judge Leonard j 
accepted Ford argum 
tbe $125m- punitive 
included in the jury 
February 6 did not bsai 
able relationship to! 1 
tory damages. J 
The plaintiff, M?\ 
Grimshaw (18;, who 
severe burns in toa ( 


shed and I country of manufacture. The flavoured 


coloured 


To encourage local investment gas field. 


with Algeria to develop 


I killing one move is one of a package of sugar; macaroni and spaghetti; the Government bas raised the Bechtel rays Algere 
another. budget measures which involve footwear; carpets; furniture; maximum net return on diyi- already “verbaUy^awarat 


Goldstein I the immediate banning of the frozen meat including poultry; dends from 16.5 to 20 per cent contract to Becntei ua 


ents that (imports of 14 major categories matches and candles; eggs; ready- 


damages I of goods. 

award on I The Government says that the 


made garments; and jewellery- 


The Nigerian budget entails a tbe company 
10 per cent cut in Federal organise proenreme 


The Department of Trade said Government recurrent expendi-l resources and eQOJP®®* ■_ 


r a reason- aim of the inspection procedure, British manufacturers of cloth- hire and is aimed at slowing The gas .. 

compensa- to be carried out by “competent” ing, footwear and jewellery Nigeria’s high rate of inflation be at Rhirarde.Nonss^i^ 

and “ reputable ” companies and would be worst affected. Last and arresting its worsening bal- . S “ T v , 

Richard international organisations on year Britain sold Nigeria £24m. a nee of payments deficit, caused Rhourde Noura gP zfr. M k- j 

suffered behalf of the Nigerian Govern- worth of clothing and £Sm. worth io part by lower, sales of its third largest in ***?■*“■ > ijt If: /■ 

[ifoch pan A.f fnrvhjjoar tnniM' AVnAvt All will be OrDCSSSGu 3Du Pi, y 


Richard international organisations on year Britain sold Nigeria £24m. 
suffered behalf of the Nigerian Govern- worth of clothing and £Sm. worth 


crash, can I ment, is to ensure that goods - of footwear. 


accept the ruling [of reduced conform to manufacturers’ speci- 
damages or seek a dew trial for fications. 


main 7 export oiL 


conform to manufacturers’ spec!- The ban is accompanied by a Although Lieutenant-General thenew 
fications. variety of increases in duty on Olusegun Obasanjo, tbe Head of (LNG) terminals on ^ 

Applications to the Nigerian other goods, some already only State, did not reveal the antic!- ranean coast xor«q 
Central Bank for foreign imported under licence, such as pated revenue figure'for the new Canadas ibut 

exchange will have to be accom- beer. Tbe Government has fiscal year he said that the Gov- Development Co^ora t 

panied by certificates. assisted local breweries by end- eminent would have to borrow lend or provide gna 

The 1? categories of goods ing price control on Nigerian up to N4Rbn. 5C350m, for the project 


zmiu uj ii:r- ■ t 

will be processed and P; ;, >S\ \j 5 1 fi 
the new liquefied natujf’1,. . J * ki 


a higher punitive -award. 
Reuter I 


SDR valuatit 


The International & 
aruu>uetng the n 
method for its sf 
rights (SDRs), said 
the weight of the 
tbe Canadian do 
Italian lira in tb 
basket wall be rq 
reports from Wai 
“ weight ” of the U.i 
currency basket v/H 
per ceat of the to' 


pnetary Fund, 
cw valuation 
^cial drawing 
yesterday that 
Jr Irish pound, 
Lar and the 
* IS-eurrency 
lueed, AP-DJ 
hingtoTL The 
I. debar in the 
remain at 33 


$C350m. for the project. 


EUROPEAN VAN MARKET 


Fiat offers new challenge 


Uruguay inqi 


trial plants and for training 
Guyanese in technical fields such 


Guyanese in technical fields such 
as engineering and architecture. 
Trinidad and Tobago has been 


< ermine the revised Lome Con- 
vention. 


Their share of aid is arrived 
at after what are called “in- 
ternal deliberations ” among 
three EEC countries which still 
have a connection with terri- 
tories overseas; Britain, France 
and the Netherlands. 

After the first Lomd Conven- 
tion was signed in February 
1975. the CARICOM Part rv 
states expressed keen ' dis- 
appointment with the amount -of 
aid later earmarked far toezu 
and communicated this unhappi- 
ness to Brussels by a resolution 
that spoke of “unacceptable 
terms” and called for “substan- 
tially more equitable allocations 
of aid." 

The matter appears to have 
been settled subsequently to the 
satisfaction of both parties. But 
this earlier scare over the 
amount of EEC assistance has 
only made CARICOM members 
more watchful. 

Certainly, the independent 
regional states which take part 


ism is a valuable concept which 
shonld be promoted and 
strengthened. 

The fact is that regional co- 
operation has recently taken 
something of a knock and 
CARICOM does not even boast 
a secretary-general who could 
take the initiative and ensure 
that the aid available is properly 
applied. That explains why as 
much as one-third of this alloca- 
tion may not be spent by 1880. 

Projects for which the regional 
portion of aid bad been con- 
sidered include^ the Caribbean 
Food programme, which is meant 
to create an agricultural sector 
providing more of CARICOMTs 
own needs and reducing the 
USS400m. a year regional food 
import bill. The West Indies 
Shipping Corporation (WTSCO), 
which serves all the territories 
in the group and is attempting 
to expand ite smaller container 
fleet was also considered as was 
the University of the West 
Indies (UWI), which badly 
needs money for expansion and 
technical help- 


toe county of SL Patrick in toe 
south west of the island for 
such projects as toe Irrigation 
of 15,000 acres of new farmland, 
toe replanting of teak and pine 
forests and toe construction of, 
facilities for inshore fishing. 

The '3.5ni. u/a assigned to' 
Barbados will be spent on a 
new integrated community, 
health centre in toe north of I 
the Island, on -promoting tourism 
and trade in Europe and 
contributing to a scholarship, 
programme in agriculture, I 
economics and other skills. 

Most of the EEC fuming is 
made available as grant or at 1| 
per cenL interest over 40 years.; 
This even applies to Trinidad! 
and Tobago, which could afford 
commercial rates. 

Indeed, because it is rela- 
tively well 1 off, Trinidad and 
Tobago is the only CARICOM 
State to have attracted the atten- 
tion of the European Invesment 
Bank, , which has just made a 
loan of 5m. u/a for loans to 
local manufacturing enterpris es. 


BY 5TUART ALEXANDER 

TWO VANS with toe unlikely turning its attentions to this end Volkswagen and Daimler-Benz on the vs? ai 

names of the Fiat Daily and toe of toe market though its ensuring that the market is well sectors vnm ffntnp 

*» — - — -*] — -1 OM.Grinta are launched this week approach has meant that it is and truly carved up by the home mqdeis, roe ^ t. 

Two delegates from the American to a move which could mark a challenging the top- end of some producers. Recently Volkswagen exclMiveiy m 

Bar Association hive arrived In renewed battle for the European competitor . ranges and the has - updated ite medium van the FGs 1 sou pop^f. . 

Montevaden and yesterday began market in medium vans and light bottom end of others.' range— the new Fiats are not dls- and similar 

five days of iaferriews with trucks. Ford recently revamped the similar— and n^m'-r-Renz has However 

senior Uruguayan} Government T . , ,, „ ... Transit ranee after 12 years of recently announced new tight tog If Leylana were w 

officials and lawyeis on the sub- “also tefits again the viabtoty transit range artery years ot vanTand trucks' from Bremen these models, which a* 

Ject of human rights, by visiting of the growinglvecoorgan^tion ve j,| cle _ on ,* oonmete with toe and medium vehicles from Dus-. ageing, and so replac 

Sr. Alejandro Rovfa*u the Foreign as tbe vehicles wUJ also, be omy compete with toe rf sSmilkely in the near ft 

Minister, and President Aparicio marketed under the Magirus °V SJ has “S eentS- Last week it introduced a 3.5 And wqu, th - other. IL 

Mendez, Robert IJndley writes Deutz label 10 Germany and pr0V j ng its s b are o£ Italian tonne version of the Dime Id or- d UCer& Bedford and Cl 

from Buenos Aires. Umc m Franc^ though ^ wiU ^^^ause Fiat could ftr In toe U-K lo order to eapj 5 to he wort 

. m 1. f K . not offer a diesel competitor at ture more of the -market that new competitors 10 this 

Weapons objection and 0B Airi a ^ me w ben diesel fuel was was looking for J? 1 }}" looking for improved ‘ 

rpi__ ,, c Brescia and Suzzara and Alfa a b out gg per gent, cheaper than than weight capacity and it has . . Europe. 

The UJS. Defence Department Romeo at Poxmgliano. S-trli H nOW plugged all the gaps from “ rn is i 

is worried about a possible short- = ZZ pe K?!^ ... T„ Its tr.r.nXT The Bedford C F » 


Government 
on the sub- 


Bucnos 


Weapons objection S2SS^ rn =. air, a ^ me when diesel fuel was was looking for volume rather l0 uking for improved ‘ 

The OS. Defence Depertraent SSS^at RnSSSS- SeSl “ PM C “ t ^ cheapec U “ n ^ CF « ‘ 

?ge 02 Jf ed iSterhS ® & nw££ The engines are made at the Another quirk of the Italian 1-5 tonnes to M . en ^f lng B ^e tnSss in.' 

vSapons. and has ib+ectedtoa F oggia factory at Sofim. the com- market is that there is a hefty In .the naviaM well asltaly. bat C 

dtodosS toternatiodS ban m SnS P^y jointly set up by Fiat and and non-recoverable 35 per cent to have outsold Fiat m toe tight naviaasweu a* 


Reuter reports frw 

They said that air. 
the Defence Secret 


proposed international ban on pro- P^y jointly set up by Fiat and and non-recoverable 35 per cent to have outsoia aiai in we ugni M - recently an® 

sSSlSiS3!mSSSSJR Alfa Romeo of Italy and Saviem VAT on ^diesel engine vehicles van sector by four to one ^d. » brtaden 

ment sources sain yesterday, of France to produce small, fast- over 2J> litres, whereas it is S with Fiat ting on a rjgni its overseas sales 


from W* 
tir. Haro 
Tetary. i 


Washington, revving diesels. 

hrold Brown, The small trucks, panel vans 


IS minibuses range from three 


over Hires, wnereas it is a wuu.. .*»««■ ^voiv its overseas sates «« 

per cent, and recoverable under hand drive launch of ite new y jjjat com* 

2 urns. ^ 1= »* < 


pews random "ffi hopes to have a, vetoel^wiU 

lat tacMes only one of these right-hand-drive S on show at toe spearheMS. 


proposal to put forward such a 


disarmament next month. 



to President Carter last Friday, to fow tonnes stoddlin E tor a U. ^Sat tackles only one Of these righfrhWMrive.S on SHOW n rae - ; 

objected to a State Department {J, M rt ant hLrie?of a! tnnnJ?i Problems it is expected that the Nabonal Ebthibition Centre motor. Renaott stij» B - 

proposal to put forward such a diesel option will be extended show in October and; that, an French nrarket, h“‘ .* „• 

ban at a UN special session on over which an operator licence is downwSs in toe futore. alJocation. of 1,000 vehicles challenged by Unic 0®« ■■ 

disarmament next month. needed- ; “ Inthemeantime Ford, Bed- been made for -the UJC- to 1979. home ground uj.ygf. . 

ford and even Leyland have been But the UJL market is a takes about 109,000 oi 
were becoming outdated and, as making hay. with small diesel difficult one to crack as it* Is pean.-toxal of otw . 

te one of the current fashions, engine commercials, although polarised around 2M .. tonnes and vehicles a ■7®**. , trui 

they concentrate on improving overall Fiat takes 89 per cent of is then -fragmented up to 7^5 That is why toe 

conditions for the dnver as well- the total Italian commercial tomes over which a heavy goods .challenge under 

as updating the body style and vehicle market vehicle driving - licence is or the new tni ® 3 * 

mtrodunng the new engine. Conditions in Germany, how- reqnired; ‘ "*• be watched closny j 

Fiat however, is not alone in ever, are more difficult with both Ley land still has a -strong grip competitors* 


i{ A: 

f ' : tw 

'.1 


U,B. COMPANY NEWS 




Keane co tt joins battle with 
Curtiss; Goodyear predicts 
downturn; GAF sale to 
German concern— Page 32, 






3 


Financial Times Tuesday Aprii 4 1978 



Two jailed 
over dollar 
premium 
plot 

FINANCIAL TIMES REPORTER 

^ | BY OUR INDUSTRIAL STAFF 

TWO MUX were jailed at ihe | 

ad^t®ns le cons£ e ^to obtafa i TF |F FO l ST ? hi P u, ? nt l of ^ °f the dangers of the producL It 
-" co s P jnn e to ODUIQ gallons of toxic waste leaves the was fined S13.3tn. in October. 

U.S. for Britain this week — but 1976, for 940 violations of 
plans to burn it in Ponlypool, federal water pollution control 
Wales, were banned, at least laws, 
temporarily, by the Health and 


Plan to bum 
U.S. toxic 
waste halted 


money by deception from autho- 
rised dealers in invesement cur- 
rency. Brian Wooding, 63, 
solicitor, of Milford. Surrey, an 
undischarged bankrupL was sen- 
tenced to three years. Patrick 
Walsh. 36, solicitor's clerk, of 
Chingford. Esscjc. received two 
years, nine months. 

Judge John Buzzard, QC. told 


.he 

toxic bepone are awaiting ship- 'h , J ied 

Son™ ***** ChemiCal C01 ' elf Bu^e£heT wh?*plJ5S!ld 

v - - . Re-Cbem International, with l “P» e °. f il ia had a 

them: “This was an extremely I plants at Southampton and l * cen ®* t° do so. We see no 
serious conspiracy which would Rougbmute Stirlingshire as well reason t° suppose it will not dis- 
have cost ihe public £lm. il it as at Pontypool bad planned to pose of it adequately. 

had succeeded.” [ burn the 78 of the 55-gallon 

drums after the British Govern- 
ment accepted a submission from 
the U.S. State Department for 
permission to export the toxic 
waste to Britain. 


Crown 

Agents 

probe 

date 


THE PUBLIC Tribunal of 
Inquiry investigating further 
reasons for the Crown Agents 
losses of over £200in. on 
secondary banking and property 
investment in the earlier 1970s 
is to hold its first preliminary 
bearing next Monday. 

Tbe purpose of this initial 
hearing by the three-man 
tribunal, whose chairman is 3lr. 
Justice Croom-Johnson. is to 
announce the lines of inquiry 
to be pursued, explain the proce- 
dure to be followed and give 
directions about the place and 
times for the hearing of 
evidence. 


Mr- David Tudor Price, prose- 
cuting, said that both men were 
approached by other people in 
1875 or 1976 with the offer of 
financial reward if they aided a 

scheme to obtain dollar premium ! . Allied had first sought permis- the GOVERNMENT should U.K. law concerning maximum 
rebates by deception. |sion front the L.S. Environmen- remove **a ludricrous anomaly” permitted duty periods. 


Drivers’ hours protest 

BY OUR TRANSPORT CORRESPONDENT 


Wooding was offered £10.000 
to prepare a fictitious list of 
securities, mainly South African 
mining shares, which were sup 


tal Protection Agency to release relating to lorry drivers’ hours These domestic laws limit 
»n drums, rhis was cut to during tbe period of transition to drivers to a maximum duty 
to enable them W fit into an EEC driving day rules according period of 11 hours, regardless of 
• international si/e container for to tbe Freight Transport Associa- the amount of time actually 
posed to be eligible Tor the shipment lo Britain. lion. spent driving, with a maximum 

dollar premium. Walsh was! Britain is committed under “ spreadover " of 12.5 hours, to 

offered £50,01)0 to write a simi-| Battles EEC ru I es to reducing the maxi- take in breaks, 

lar letter regarding other securi- mum permitted driving day from The Freight Transport AssocLt- 

ties. j Yesterday the Health and ten to eight hours over the next tion says that the combination 

But the schemes fell through Safety Executive served a pro- three years, but the industry had of the two sets of law will make 

when the necessary financiil h5tihion notice t0 the company assumed that in adopting this many existing operations in- 

backine could not he found in l,nder lhe provisions of the tighter regulation it would be volving periods of waiting or non- 

I unrinn nr Amprin Health and Safety at Work Act, relieved from the provisions of driving duty illegal. 

_ A , 1974. This said that processing— 

P I of kepone should not be carried 


TERRY DODSWORTH examines the NEB report on British Leyland 

Further aid ‘an act of faith’ 

THE REPORT on British Ley- sector borrowing capability and raised from £700m. to £lbn. - Government had accepted this 

land published yesterday by the to produce a reasonable debt — The' Board stresses that the request in principle. 

National Enterprise Board, the equity ratio (at present this ratio new equity . Is necessary If the The report is much less 
company's main shareholder, stands at 75:25, which will be con- company is to be managed detailed than the Ryder Report, 
concludes that further support verted to 49:51 after the new “ efficiently and if it is to eon- and does not break down 
is " an act of faith.” equity injection.) - centrate on the tasks essential expenditure on different parts of 

It adds that the course now a The first investment of t0 restore il t0 commercial and the company, or make any 

being charted is correct, and enterprise b£rd fu£fc was in financial health.” market share projections, 

that, having exercised the “im- the form of loan finance wirHe It agrees with the company that It H also .?*■** 

ssssrs Ue cha c». EAJt r^,l°nn u ^- ««23^SWKSS 

LKViW SmSF* - bsrsss E:~3r43 

R srsssstssa&qg. %*£ an&y&si 

Report which followed the first Resources pute whereby new finance was nox-e^is^ ' W 1 ' a very 8 1 *“ ual 

Government-backed reorganisa- Th «y- n toeether with ihe made * u *d* et . to specific condi- v Great emnhasis is Disced on 

lr a SSS s fl SSS'«?£ 

pmnloved^s^realkM? be- Government’s commitment to . . • . results of 1978 ana 1979 which 

0>ed U t be_ Leyland to a total of £L000m. in JfeSSTJSSSl'S wtil determine the future of BL 

fore 1981. the period up to 1981. revert to the original monitonng Gars.” . 

But if the companv can T , . . , . procedures. These- entail tnotu- 

achieve its objectives over the ♦*.~ e r a ?. d - ,s toring the company's perform- ^ 

next two vears — a period which, “ at In tbls Period it will be able ance against budget during- the V-OUtiCieilCe 
it argues. is crucial to Levlaod’s , . .* 8001 year and allocating finance it - that 

survival — there should be no £?/ aho . ut fS50m -> from ^ annually against an updated coi= t JE? s ^4 ft E e ’« ilht tjff 

problems over finance in tbe internal resources, and wall P0 rate plan and budget for the 

rni?nvcin n thp nlan nprrori obtain cstra finance from the fniiowine vpar highest pnom> to 3 projMUMne 

years Follow m tbe plan period. prjvate 6ector These sums are i. L® * ,“V, C hntuov . r t of short-term actions designed to 

In the -nest four years covered required to finance an investment 5? ard a 4 d fi, h ?^ e ^ er ’ produce success in 1978 and 1979. 

by the plan, the board has programme of some £1.3bn. and **** a t .^ is . st f ge beed * “ Both British Leyland and the 

accepted the Leyland proposal a hi g h er level oF business a ssuraoces about the future: avail- Board believe that lack of coafi- 
that a further £850m. should be activity. ability of finance. _ It therefore, dence, engendered to a sub- 
provided from public funds. Wnwpwr n,. R n „H u -;n ?*«■ r an * asurance funds stantial measure by the public 

)f this. £450m. will be in the be unable ’to provide all of the through^to r Wl^Sthin P the beraa veSlSge factor 

form OF new equity which will £450m. equity, partly because of overall total of £L000m. depend- S the^ewnt decSi lMg f 1 
be advanced thisyeartn order to limits on its own cash resources ing on satisfactory performance “The^SpSy¥^ weaknesses 
restore the strength of the and partly because of the need by British Leyland, of, in the have heen^SseratedSd its 
balance sheet. The mam reasons to avoid over-commitment on one event of unsatisfactory perform- s^ng^'laSS^Sowd: ThuS 
for thu. form of funding, says the project. aDcei t0 funjjjb the Board with the ^benefits y of reasonable 

entert’nse ooara, are: Thus £150m. will be made such funds as would be necessary success from the company in the 

i tiip risks inhprpnt in thp available under Section 8 of the to implement whatever . decision short term, linked with public 
business Industry Act 1972. Funds pto- is then taken about the future of demonstration of confidence in 

wa. vided this way do not count the company." the company by Board and 

I The need for ao equity base against the Board’s statutory Mr. Eric Varley, Industry Government, are likely to be of a 
to sustain an adequate private financial limit, which is lo be Secretary, said yesterday that the high order.” 


Scotland Yard's fraud squad, 
was told that £3! in. was named 
at one time as the amount 
needed to finance the bogus 


out unless a safe system of work 
had been established and agreed 
with the executive. 

The notice was issued because 


operation— but then the higher, the executive was concerned 


figure of EIDiii. was taL\ed 
about 

Judge Buzzard said both the 
guilty men had played an im- 
portant part in the scheme as 
they worked in solicitors offices, 
hut he accepted they had gained 
nothing out of it. 


about the hazards of kepone 
which can produce sterility, un 
controlled trembling and brain 
and liver damage. 

Allied stooped producing it in 
1974 after legal battles over 
water pollution and alleged 
failure to warn former employees 


Legal problem holds up 
option participation 


BY MARGARET REfD 

STOCK Exchange companies 
wishing to join the European 
Options Exchange which opens 
to-day in Amsterdam are held up 
by a legal problem. This is in 
spite of the removal of exchange 
control obstacles to British 
investors dealing there in options 
on U.K. shares. 

Tt is not clear whether Stock 
Exchange concerns could become 
members of the new Amsterdam 
exchange without requiring 
dealers' licences under the Pre- 
vention of Fraud (Investments) 
Act 1958. The Trade Department 
is taking an opinion on the sub- 
ject from counsel, which is not 
expected to decide for another 
week or so. 

Two British Stock Exchange 
concerns are participating in the 
new exchange through overseas 
subsidiaries. These are W. I. 
Carr, a shareholder, via its Hong 
Kong subsidiary, in First Options 
of Amsterdam, which will be a 
clearing member of the new 


exchange, and Sebag Bermuda 
Holdings, which Is wholly-owned 
by Joseph Sebag. Merrill Lynch, 
the American group which is the 
world's largest stockbroker and 
is a clearing member of the new 
exchange, is expected to provide 
a clearing service for Sebag 
Bermuda. 

It is thought that up to a dozen 
or so concerns on the British 
Stock Exchange may be in- 
terested in joining the new one 
if and when the remaining legal 
obstacle is removed. 

The Bank of England has 
agreed that British investors 
may deal in Amsterdam 
options on British shares without 
having to pay the investment 
currency premium. British con- 
cerns which do join the exchange 
eventually wil] be able to pay 
the necessary membership ex- 
penses. also without incurring 
liability to pay the premium. 

International company news. 
Page 32 


February beer output up 


FINANCIAL TIMES REPORTER 

BEER production in the U.K. 
in February totalled 2.8m. bulk 
barrels, or 8.1 per cent up on 
February last year. 

Retailers stocked up in antici- 
pation of price rises from some 
brewers in early March, the 
brewers Society said. Distribu- 
tion pipelines had to be topped 
up, after de-stocking at the end 
of 1977 caused by strikes and go- 


slows in depots and breweries 
The early Easter boosted de- 
mand. 

Comparisons with February 

1977 were artificial because pro- 
duction in the early months of 
last year was hit by duty in- 
creases. Taken together, produc- 
tion in tbe first two months of 

1978 was still below 1974 and 
1975. 


Persian kings book sold 
for record £310,000 


V NEW AUCTION record for 
my item of Persian art was paid 
J Sotheby's yesterday when an 
ranian private collector gave 
210,000 for an illustrated Sbab- 
iama, or book of kings, dated 
602, and containing 62 fine mina- 
ures. It was estimated at about 
85,000. 

The book comes from Khuru- 
an, possibly Herat, and was 
written by the scribe Haidar 


SALEROOM 

BY ANTONY THORNCROFT 


Quli Al-Harawi. Tbe previous 
top price was tbe £280,000 paid 
at Christie's in 1976 for the 
Houghton Sbahnama. 

The manuscript was part of the 
collection of the late Hagop 
Kevorkian, the archaeologist A 
total of £871,000 was brought in 
by the sale. Another exceptional 
price was £160.000 from Spink 
for a rare manuscript tiF Al- 
.Tazari's “ Book of Knowledge of 
I ngenious Mechanical Devices.” 
compiled in either Egypt or Syria 
in about 1315 with nine diagrams 
and 9S miniatures. 

Al-Jazari was probably the 
greatest medieval Islamic techno- 
logist and this is the second 
earliest copy of the manuscript 
juiDWTl. 

A single illuminated leaf from 
the DemotLe Shahnama. one of 
the maj'or Mtbcentury Persian 
manuscripts, sold for £100,000 — 
double its estiamte. In 1969 
another sheet from the same 
manuscript sold for £30,000 at 
Soutbeby's. 

This was a very successful ale 
vi!b almot all the lots selling, 
many for muc habove their fore- 
cast. A11 the prices carry a 10 
per cent, additional buyers' pre- 
mium- * rhe group or miniatures 
from the ".Murray" album- 


assembled in the lSth-century by 
Col. John Murray of the Bengal 
Army — brought in £16.660 Cor the 
19 lots, with a top price of £9,500. 

A set of six Meissen armorial 
teaspoons from the Swan Service 
made for Count Bruhi was sold 
by Christie's yesterday for £6.000. 
Count Bruhi was an important 
political figure in tbe govern 
ment of August III and a former 
manager of the Meissen factory. 

While pieces from the Swan 
Service regularly come up for 
auction, their sale yesterday was 
the first occasion on which any 
of the teaspoons has been sold. 
Until yesterday it had generally 
been assumed that the teaspoons 
had been lost or broken. Sent for 
auction by one of Christie's 
European client 1 !, they were 
bought anonymously in a sale 
which totalled I7S.142." 

A Meissen ormolu-mounted 
qua trefoil bowl of Christie Miller 
type, circa 1740. and painted with 
figures and buildings in a con- 
tinuous river landscape, sold 
anonymously fur £2.600. 

The London picture dealer Roy 
Miles paid £2,200 for a Meissen 
Augustus Rex oviform vase 
painted by J. E. S ladle r. circa 
1730. and Adams Antiques of 
London paid £2.000 for six Berlin 
armorial plates nf about 1775. 

Thorn director 
dies in crash 

A PILOT killed at Coventry air- 
port when his single-engined 
Cessna plane crash-landed was 
identified yesterday as Mr. Wil- 
liam Heron Liddell, aged 45. 
U.K. commercial director of 
Thorn Lighting. 

Mr. Liddell, married, of north 
London, was to have taken up a 
new job shortly with the com- 
pany with special responsibility 
fur sales on the Continent. 


YOU COULD FAYA LOT MORE 

AND GET A LOT LESS. 



for something a bit more than average. 

So it’s good to know that there’s still a very special 
saloon at a price that compares most favourably 
with its not-so-special competitors. 

The name of this car is the Lancia Beta 
Saloon. 

Concealed inside its seductive 
Italian shape is a powerful twin 
overhead cam engine, 5-speed gear- f 
box, front wheel drive, all-round 
independent suspension and servo- 
assisted disc braking on all four 
wheels. 

This provides you with superb 
handling in all conditions, not to 
mention the sort of excitement you may have thought 
had gone out of motoring for ever. 

On the dashboard is a full array of instruments 
including an electronic rev counter, oil pressure 
gauge and early warning systems for low hr alee fluid 
and disc pad wear. t 

Inside is luxury seating for five adjults, with 
fitted carpets, thick padding and sound insulation 
and separate heating and ventilating controls for 
front and rear passengers. 

While sitting in all this luxury, you are surrounded 
by a rigid steel safety cocoon, with front, rear and 
sides designed to absorb accident impacts. ! 

Behind you is an 18 cubic foot capacityboot for 
your luggage with a low-level sill for easy loading. 



The Beta Saloon Range: Beta 1300 -£ 3 ^ 9238 fBetaIj 500 -£ 5 ^ 24 . 7 T?BeIa 2000 -£ 4 . 080 . 96 f Beta 2000 ES-&L 45 & 53 * 


Protecting your investment is interbody cavity 
injection and underbody sealing to fight corrosion. 
And backing you is a full 12-month warranty with 
unlimited mileage. 


Italian automotive engineering? 

The 1300cc version is £3,292.38. The 1600, 
£3,824.73. The 2000, £4,080.96. And the 2000ES, 
£4,456.53. All including delivery charges and two 
inertia reel seatbelts. •' . t 

Whichever one you choose, there’s one thing 
you can be sure of. ' s 

You can’t get more of a car for 
less money. 





Prices' 1 of other 


Lancia (England) LttL.Alperton.Middx.Tel: 01-998 5355 <24-hour sales enquiry service). 

'Prices incl “ de VATai 8®band car lax, inertia i-ee! seat belts and delivery charges (UK mai n land), but exclude num herniates. - 

Lancia ranges start at: Bela Coupes -£j.760j 8; BetaSpydcrs -£4,959.63; Beta HPEs (High Perftjrtnance£state)-£5 > 025J5. The Beta Mont&CarIocosts£5i92722-. 


6% interest finance. One month only. 

Buy a new Lancia in April and take advantage of special low interest finance 
arranged through Forward Trust. 

Your loan interest will be at a flat rate of 6% per annum equivalent to a true 
rate of 11.7% per annum calculated over a two year agreement. This offer is subject 
to normal credit qualifications and is available through our dealers listed below or 
direct through any Forward Trust branch office.The offer is only available for orders 
placed up to April 50th 1978. 


ENGLAND 

Alnwick. ,■ , r . 

■ .»,».• : i- 

AjhJouf "'id id- 

Aylesbury: f . . ■ . :.r.i . . 

. r -je-A •*-:! 

Binbvry. -Vl.i M .■ • ->r 

' -I 

Barknvg: ■_ ,\ u-t.. c ; ,. , 

BaMotfEtokr.- l*,i •«* .. 
i . c. .' j .1 *— .i 

B.nntay: J-'.'/'.ii . 

r : W7or- .-650 
Binning hum; Jl< i*or .1 _ 

Blond ford: Lir.b!—'. C J'i- . 

1 - v»:5l>.r.'3Si 

Bnhon:5*v'-« . .ifc.jon 
Ownwnouth: M m? n 1 L ■[ C- r 

7 J|JJ , 

Bjlyfiion: - 

IShr-r:-.-*!.. I.- VM|,|. 


Bristol- - j ,, 

Bmnjloyr'-v— jr „• - . 

Bunins Mill: ” ■. . _ j 
Cambridge: :r..-. 

Comfonn:-:'..- ■ 

' or _ •..* j 1 luC* 

Co loitiiin j 

■•i :: Ajji >: 

ClWuiilunKS.t^J.-; >rt-. 

Owchcst «r ^ .".Ofi -ij- js-\ 

Bwtirorpes: Oj.c -- . r Vi- 

ColcbaannC J”. 

T -- 40nA<»«r» 

D«nbam:i— -.^ 1 -, v 

D« r bf. .Vy '■'-i-.jrt v 
0'>3;a-.-.s ■ 

Doncaster: . 5...1 . 


Dcrehniicr. • • rXji ■. 

' • .)<>-. ■. -- 

Eaorsi::— 

I Eunoulti:-. 

* 1 ■. j. 

Fareham: hj.w.-. 
v:.-.’ 

FeHcwoni:: O f-j • . 

Gdli nghora: - i-. .d-ii. 

"•»: M-eu. »r 'CoJ-i 0.~J U 

GioucmorrV. . nrf.Iic!-.’'-. 

I - WiiaWH 

Guild lord: P-JC-.;., 

* 1 O.I«.M7?-I 

M BlBswartB 1 Svf : » I. h-.rf"r. 

•Zji, T--- ' .! -j-j-j 

Kj 1 too* I«r .More- ■: 

■- 

HarNold: C 

;••• ;o;u:3 

H«iylOTd.V."«'TC,l>.»^.- V 

!•: >u?r54^i 
Huddyrsflold: C -.k* ■.<■! • • 

: ■ ..LioAZ.ijJJ 


VllkRilttf: !<iotv3fTgnkjn rjaiAw- 
T--I 05ln380CMd 
VIMUnstoutecrliov. 

. UD;-M7*in 

Personal Export: if you are eligible to purchase a Lancia free of taxes, contact our Export Department. 


Ipswich: Quli urn. . 

T-iWJ 7»377 
Kenilworth: V.ILi B-o 
1-1 iMJf. WOJj 
K stt srl r>g: 6 on Uoior- 

T-i 003 

KhWsrrnbistar: Cv-nmv UmoL 

rf.uouz e&.”i 

Kings Lynn: H.ii a O.twrrie. 

1- - CS 03 43i*ni 
LmOxB*’,, ■ .IV.PIkiv. 
l -l CO 73 0 J-M 13 
Leicester: r-Minc. 1 -. 

O.J34i;uj 

Lincoln- v ■ 

LONDON 

N.W.7: ko. . . 1 -jj- 
”■ ■ ‘. , l.;-i. -i/jv 
$£l:(!aicrii».’C.K lij. 
i.-t -‘I ?2SmV. 

S.w.1 .? 'O: V.i. iI.-Til*— .. 

'•r jl Oi'i 

S.W.KJ:i.,.ini--i >-.i v'... . :i J'n 
S.W.T9: Ivor *+.ll Tf. O. jii. Lod?. 

— 01-^30 

Wj*: Thr O- lu-’n <: F"« , 

:.r 01-99' 00-- 
W.8:i3..i|,ic>uilv| Clxuioad r.f 

I ■■it-rtjt.n T-.l 0I-M9 733? 
Msid snh nsd: Dfln Mat.?. C-. 

T-* 

Ms nrfi ss tiJ i : Seer b fci-ji eta. 

Cl6'.274337 s J 
MansfMd: fb>i Mu> jjn. 

M 0073810)30 

NnrnsrisiB»i-TynB: hvm* rjoiv' 
i-i Oii-- 737131 

NORhSmptorl: Brcuol 1 Mo 1 . 

T. 1 rjto-s 23737 

Norwicb: P jailor (Iw Cl 

r-H tMdrws 

**» Wnshnm; mu U j| U f-. 

Th 0o07" , 402i 
Word: J □ ujici.r/. 
r.< 


Palgntuti. RmhUjijk. 

Tel 06O355SJ34 
Pnn3bourn«:-Auiocs!i>. 

TW 073 S? 3331* 

Pnterbortni^i: ^mwOLOb Aumjl 
lei 07:363140 
PHrm«itli:P w. 

'-.I 0»b.' 7TH73 
RamMV: u) Rgmg>f 

V Or3iSI3U<5 

SLAnnes-an-S«a:Clwnnp.Md. - • 

■ ’■ jr jrj _■ v 0703 '7o¥~-J 
St Lsonsnte4MV«s«: ShMsdUd . 
‘•‘Aijc 15: LL-jmrd-i OJ 74 47 c 341 
Scarborough: Mtkn « kr.acwi. " 

hi v77364*i> 

Sheirwld: Moehun Hone U.u iu. 

T? 1 C74JS_-<dH 

SharbamKOiKii ohrrtwfnci. 

c-usbijm: . 

Socth»mpton: W 

'idnni L>^ii Ciu j. 

0* 03 - * 

SouUrsnd; Thrsp^Bsv ArjtocMint 

■S 07^7 6(ta 

SteRsted: n*. 5ijna.d mom Co. . . 

T -i u779y>iy.5 

Stockton on TNKCman h Rue 

0647 651543 

Stoke onTrsirtVV^rTi..^^ mb* i-j . 

iM«*rl T.i 078270744 . 

Strattord-on-Avan: MAv Bros' 

W 0789 68838 

MsdonDidlsiirniJnKUQCe-i 

T.,H 079327378 
TSunteK P.Sootc. 

Tel 087 347754 
Telford; VG Votodcs. 

M-09SJ61808f 

Thro: Playing Pu=e Bar » 

t**.0B7286334; ^ 

T\ml»id| M WoM». G E.r^Anjor- 
To* 039235111 


. WannbntartJe>iiRteL>L . 

Tqi- 0986 714 77 7 
- WihmkNnWhnAwMotofs. 

W, 099 64 2 7385 

. Windsor: Delta Moloi Co. 

Tt> 8588707 ; 

VWwwtiwiipten; C^f oU Mmois. 

. W.B30227KJ7. 
.■V Knc s s asnaeLgitemMiaais. 

Tel 0995351321 • 

SCOTLAND 

AMRlsanrOnn Hmdeiyon Uwors. 

Jut- 077479343 .. . - 

Ayrt Cited HAfn>;ri.Xi Molyri 
6M.B392 81531 ■ 

Dpndae: Parueri C4> j 
Tel .0382 2500? 

Gdintoiislc81a> HndsrMn Motm 

T4.031227923S 

JGtesvnw: OnHcpderteii Mo EOS. 

TM-.04I9O1ISS'. 

KtomytP S .Ntcrutouv, 
TMD3097214; 

-PseUes: 8<cwn Biin. 

1«1 U721 20545 

-WALES . 

OurfMis Snow's leans**. 

Tst 0222 20329 . - 

Pontypridd rSooW^ trfrsoe. - 
;ThM)M3«nB60 
Sissnsssr Gisnfirtd Laanancs. ' 

Tat 070234537 . . 

NONTHO?NWELA«D.-.. 
B4rtB*:SianfcvHi7v^& "co. - 
TO-023241057 . 
UumAr-ComldnilCiKL 
fat 060472^78" 


SFDQxtK ^Ba^metamLam/oii 


f. 


L ■ 


* 


$ - 





6 


LEGAL APPOINTMENTS 


Chief Legal Officer 

j£9,323-£ll,673 (inclusive - under review] 


Applications are invited from admitted 
Solicitors for this pensionable post in 
London which will become vacant in fane 
1978 on the retirement of the present holder 
The Commission is a statutory corpora- 
tion responsible for the management, 
development and redevelopment of 
extensive commercial and industrial 
property in four new towns.lt will shortly 
begin to take over the similar commercial 
and industrial estates in ten other new 
towns to form one of the largest estates of 
its kind in Britain. 

The Chief Legal Officer as principal 


legal adviser to the Commission will par- - 
ticipale in the initiation of policy proposals 
for the estates. As head of the Legal Depart- 
ment wholly based in London, he / she wfli be 
responsible for the discharge of all legal 
business of the Commission. 

Further details of the Commission's 
functions and organisation will be supplied on 
request. Applications marked "Confidential" 
(with Uvd references or two referees) 
should be sent to \LG. McKenzie, Chief 
Executive. Commission for the New Towns. 
Glen House. Stag Place. Victoria SWlE 5AJ, 
not later than 20th Aprill978. 


Commission for the new towns 


APPOINTMENTS 


Development Director 

• this is a new board, appointment in a long established 
wholesale grocery business based in the Midlands, strengthened 
by the resources of a publicly quoted group with a turnover 
in excess of £3 50m. The company operates in the Midlands 
and South-East of England. 

• the role embraces full profit responsibility for a major 
distribution centre, and the production, of a marketing plan to 
develop retail and catering sales. 

• A record of marketing management success in this field 
is essential. 

• preferred age. early 30s. Location initially Hampshire. 
Earnings indicator £13,000. 

Write in complete confidence 
to R. T. Addis as adviser to the company. 


TYZACK & PARTNERS LTD 

IO HALLAM STREET *, LONDON. WIN 6DJ 
IZ CHARLOTTE SQUARE - EDINBURGH EHZ 4DN 


Leading Firm of 

INTERNATIONAL 

STOCKBROKERS 

Have a vacancy for a DEALER with two-three 
years general experience to join a team of 
dealers in our Arbitrage section. A first class 
blue-button would be considered. There are 
excellent prospects for the right person. Salary 
negotiable. Non-contributory pension scheme. 
Please write giving age and full details of 
experience to: — 

Box A.6312, Financial Times, 

10, Cannon Street, EC4P 4BY. 


STOCKMARKET PERSONNEL 

REQUIRED FOR 

GROUND FLOOR /FIRST FLOOR OPPORTUNITY 

All training given to enable rapid progress 
within aggressive organisation providing a 
complete range of financial services to non- 
discretionary private clients. 

Salary range £6,000-£18,000 calculated on profits 
related basis. 

Write Box A. 6237, Financial Times, 

10, Cannon Street, EC4P 4BY. 


MEAN AND AGGRESSIVE 
QUALIFIED 

YOUNG ACCOUNTANT 

REQUIRED BV RAPIDLY-EXPANDING LONDON-BASED 
RESTAURANT, PUB AND HOTEL COMPANY 

To take charge of total Accounting and Administrative. 
Functions. Experience of this industry an advantage, but 
not essential. Salary £7,500 to £8,500 

Apply with full career details to; 

The Chief Executive 
5, Park* Walk, London, S.W.I0 


STERNBERG THOMAS CLARKE & CO. 

have a well-established branch office at 

HORSHAM 

and would welcome one or two members of the Stock Exchanee 
with good-quality business to join the existing team of partners, 
and associate members. 

MPDS sets are installed and there is a direct line to the 
London Office. 

Please apply to T. A. M. Pigott at our Head Office 
Salisbury House, Loudon Wall, London EC2M SRU 
Telephone: 01-588 6050 


CHIfeF ACCOUNTANT 
25/27 Years 
Circa £5, Odd per annum 

Our Print 1 pall, a much redacted 
Itayd'* Brokine How*. require > 
Chief Accountant to head up the 
Accounts Department of one of their 
Fast expanding Divisions. The Meal 
candidates should, be qualified to A CCA 
or AGA level and possess leadership 
qualities. A preference wHI be given 
to applicant living in the East London/ 
Essex area. 

Pieose contort in confidence;— 
TREVOR !A M ES— Alanagfng Director. 
Insurance Personnel Selection Ltd.. 
Lloyds Avenue House. 

6. Lloyds Avenue. London EON 3E5. 
Telephone: 01-481 fill. 


COMMODITY APPOINTMENTS LTD. 
International Recruitment special bis for 
the Com mo di tv Markets. Tel. Graham 
Stewart. 01-439 1701. 


LEGAL NOTICES 


LAUREL PORCH 


NOTICE OF MEETING. O F CREDITORS 

NOTICE IS Hereby aWen. pursuant to 
Section 295 of the companies A« 1 948. 
that a mee.tne Of the Creditors ot the 
above-named company will be held at 
11-13 Hoibom Vladuc* London EC1P i€L. 
on Friday. 7 April. 1978. at 12 JO p.m. 
for the purposes mentioned In Section 293. 
294 and 29S of the faM Act. 

DATED 22nd d*r‘ at March. 1978. 

A. LEW. Director. 


No. 00927 Of 1378 

In the HIGH COURT OP JUSTICE 
Chancery Division Companies Court la 
The Mauer of SYRO.NS lNVESTUEiYTS 
LIMITED and to the Metier of the Com- 
panies Act IMS. 

NOTICE IS HEREBY GIVEN that 8 
Petition ror the winding up of the 
adore-oamed Company by the High Court 
Of Justice u-aB on the iOih day of March 
1978 presented lo the said Court by 
EPHRAIM MOSES Of 13 SheMoo Coart. 
Lower Edae (xi rough Rdad. Guildford. 
Surrey, and that the satd Petition Is 
directed to be beard before the Conn 
silting at the Royal Courts of Justice, 
Strand. London WC2A 2LL. on the 24th 
day of . April 197S, and any creditor or 
contributory of the said Company desirous 
to support or oppose the making of an 
Order on the said Petition may appear at 
the time of hearing In person or by bis 
Counsel for that purpose; and a copy or 
the Petition will bo furnished by the 
undersigned to any creditor or cottui- 
tntgry of the said Company requiring 
such copy on ' payment of the regulated 
charge lor the same. 

Rt/BrNSTEDf CALLTNGHAM. 

B Raymond Buildings. 

Inn. 

London. WC1R SBZ 

Solicitors for the Petitioner 

VOTE.— Any person who intends lo 
apoear on the bearing of the said Petitiou 
rtttrsi serve on. or send by post to. the 
above-named notice In writing of bis 
Intention so to do. The notice must state 
the nrutie and address of the person, or. 
if a linn ibc name and address of the 
firm and must be signed by the person 
or firm, or ills or tbclr solicitor rif anyi 
and must be served, or. If pooled, must 
he sent by post in sufBcient time to 
read) i be above-named not later than 
four o'clock in the afternoon of the 
2 1st day of April 1978. 


PLANT AND 
MACHINERY 


GENERATORS 

Over 400 secs in stock 
lkVA-7D0kVA 

Buy wisely from the manufacturers 
with full aftcr-alv* <er*kc 

CLARKE GROUP 
01-985 7581/0019 
Telex 897784 



■ Financial Times Tuesday April 4 197 


HOME NEWS 


EIA1 

charters 
to quit 
Luton 


By Michael Donne, 

Aerospace Correspondent 

EL AL, the Israel national air- 
line, is transferring to Stansted 
its- holiday charter flights 
between the UJC. and Israel 
because of industrial relations 
problems at Luton Airport 
Security personnel at Luton 
had objected to El A1 providing 
its own security men aboard its 
flights. They bad threatened to 
strike if the airline did not 
change its policy. 

El A1 finally decided at the 
end of last week to move to 
Stansted because it could wait no 
longer for the men to change 
their minds. “It is a shame. 
Luton has lost the prestige and 
the business,” it said. 

Scotch switch 

DISTILLERS WILL replace the 
Johnnie Walker Red Label 
brand of Scotch whisky with 
John Barr in the U.K. The 
square bottle Vs retained, bat a 
new gold and black label will be 
used. 

Glaxo move 

GLAXO HOLDINGS is reorganis- 
ing its pharmaceutical business 
in the ILK. by creating a single 
subsidiary for the manufacture 
and sales of prescription medi- 
cines from its six companies. 

Insurance law 

NEW DRAFT regulations on 
authorising insurance companies 
to carry on direct general insur- 
ance business in Britain were 
published yesterday. They will 
bring Into effect further pro- 
vision of the EEC's Non -Life 
Insurance ' Establishment direc- 
tive- 

Engineering study 

RADICAL CHANGES in engin- 
eering apprenticeships, enabling 
young people to qualify as crafts- 
men on their 18th birthday* were 
proposed by the Engineering 
industry Training Board yester- 
day. Entrants will no longer 
need to acquire craft status by 
serving a given period. 

Watchdog welcomed 

MR. BRIAN MAYNARD, chair- 
man of die Consultative Com- 
mittee of Accountancy Bodies, 
yesterday welcomed the setting 
up of the Council for the Securi- 
ties Industry, the new City body 
to oversee the securities markets 
on a wider basis. 

Blacking affect 

THE EFFECTS of the Post Office 
Engineering Union's blacking of 
new equipment in the Post Office 
are “appalling,” say the Tele- 
phqne Users' Association. It had 
caused bitterness and a "lower- 
ing of morale.” 

Air link probe 

OBJECTIONS to the proposed 
helicopter link between Heath- 
row and Gatwick airports are to 
be heard ia public in London 
to-morrow at the Civil Aviation 
Authority's headquarters, Space 
House, Kingsway. 

Pensions rush 

MORE THAN 17.400 employers 
have submitted applications to 
contract-out of the new State 
pension scheme which starts on 
Thursday, according to figures by 
the Occupational Pensions Board. 

Channel tunnel 
could cost 
only £500m. 

By Our Transpcrt Correspondent 


A PLAN FOR 


Channel Tunnel, perhaps cost- 


ing only £500m 
up by British 



a scaled-down 


is being drawn 
ind French rail- 


way planners and may be con- 
sidered by the British Rail board 
this autumn. 

A joint pfenning exercise 
between Briasb Rail and 
Socidte National .des Chemins de 
Fer has been ih progress for six 
months, but interest in its find- 
ings has heightened because of 
a rekindling jbf interest about 
the project I in some EEC 
quarters. f 

The new scheme would involve 
a single track to be used alter- 
natively by ip to 20 trains a 
day. This would give a journey 
time of foi r hours between 
London and peris, including a 40- 
minute pass ige through the 
tunnel. One t utstandlng problem 
is whether ti select British or 
European (Bqrne) gauge for the 
track. 


Plan 


New North Sea setback 
for Hamilton Brothers 



BY RAY DARTER, ENERGY CORRESPONDENT 


THE HAMILTON Brothers group 
has suffered another big setback: 
in its North Sea oilfield. A 
mechanical failure on the tanker 
loading system will mean that 
the field, which has been shut 
down for the past two months, 
will remain dosed for another 
six weeks. 

Closure aleady has resulted in 
a delay in oil revenue to the 
partners of about £8m. Produc- 
tion worth a furiher £6m. vrill 
be held up as a result of the 
latest problem. 

A bearing failure in the single- 
buoy mooring system means that 
the turntable carrying the load- 
ing hoses is unable to move. This 
movement is essentia! to allow 
tankers to load oil in varying 
wind and sea conditions. It Is 
thought that corrosion might 
have caused the mechanical 
failure. * • 

Weather 

The mooring system is to be 
moved from the field to a yard 
—probably in the U.K.— for 
reconditioning work. Samson 
Diver, claimed to be the world’s 
largest marine construction div- 
ing support vessels, is to assist 
in the .lifting and transporta- 
tion of the mooring buoy. 

Hamilton Brothers said that it 
was hoped production would be 
restarted about May 15. This 
will depend on weather condi- 
tions. 

Bad weather has prevented the 
installation of the Transworld 
58 semi-submersible production 
platform which bad been towed 
to a Scottish yard for repairs 
to a fatigue crack on one of 
the underwater support mem- 


bers. The field was first shut 
down on February 4. 

Production from the field^-the 
first on stream in the North Sea 
— had been averaging 21,000 to 
23,000 barrels a day during 
periods of good weather in 
December and January. 

Interests in the Argyle Field, 


the' smallest commercial oil dis- 
covery in the '-North Sea, are 
Hamilto n Oil C28£ per cent.); 
Hamilton Petroleum (7.2 per 
cent.); Rio Tinto-Zinc (25. per 
cent); Texaco (24 per cent); 
Associated Newspapers (12.5 per 
cent); and Kleinwort Benson 
(2.5 per cent). 


Brae field may cost 
$2bn.— Marathon 

THE BRAE Field in the North' Gilbert Eliott and -Co, sfods-1 
Sea is likely to be developed brokers, has encountered several 
at a -probable cost uf ; about hundred feet of oil-producing 
S2bn. (£1.07bd.), according .to sandstone. . 

Marathon Oil, the leading part- Marathon has told share- 
ner involved in. the project . folders that the.- latest well. 
Marathon has told., share- drilled six-tenths of a inile to 
holders that the field could, be, the north-west ‘of -the .eighth 
on stream by 1982 which would well, is pari of an evaluation 
mean that the Brae consortium. .programme designed to deter-] 
would have to take d J .. develop- mine the location of production 
meat decision within the’ next 13 platforms. Preliminary -devel- 
months. . opmeni planning bad .'begum 

. The field, operated- by : . oil from Brae might well.be 
Marathon subsidiary. Pan. Ocean,’ carried ip a new trunk line buQt 

is one of tbe^ncst complex j n co-operation with, operators 
geological structures -in the on other nearby fields such- as 
North. Sea. Consequently, in Toni. ‘ Thelma, Mabel and 
spite of 12 exploration and Andrew. " ' ■ ' : 

Partners fn the Brae- Field, 
of more than «Qm, ; the oil which lies In block 16/7.' are; 
indusp-y. is uncertain- about the Pa n Ocean (38 per cent.); BritUb 
extent of recoverable ^reserves. National OU Corporation (20 per 
'Marathon says in its annual cent); and Saga (2 percent.), 
report that Brae is a. major field Kerr McGee (8 per cent.); Asfa- 
with reserves in excess of: 500m. land (6.3 per cent)' -Ashland 
barrels. The eighth well, which Canada (L4 per cent); Louisiana 
flowed oil at an aggregate rate Land and Exploration (6.3 per 
of more than 33.000 barrels a cent.) ; Siebens 1 Group (4 per 
day, was one of the most prolific cent); and Saga (2 per cent). ' 
wells in Marathon's history. ' ' Marathon is negotiating to' 
Pan Ocean is core-toting the- acquire Ashland’s 'stake' in- the 
22th well which, according to partnership. 


Cabinet will be urged to back 
tougher policy on mergers 


BY RICHARD EVANS, LOBBY EDITOR 


A SHIFT in the Government’s 
attitude - towards competition 
policy involving a much tougher 
policy towards mergers is to go 
before the Cabinet shortly ahead 
of publication of a Green Paper 
next month. 

A 14-man inter-departmental 
committee has recommended 
unanimously to Ministers that in 
future it should be shown that 
a positive public benefit would 
flaw from a proposed merger. 

At present, although the legis- 
lation is theoretically neutral, in 
practice, mergers tend to go 
ahead unless it can be proved 
that they are positively against 
the public interest 

The idea seems to be to restore 
the neutral balance intended in 
the original legislation. This 
may be done more by strengthen- 


ing the -procedures- in the Act 
rather than by maktog funda- 
mental changes to -t 'he Idw. >■ ... 

The change has come about 
after increasing • acceptance 
among Ministers that the Ipolicy 
favourable to big- nwrgers 
pursued both by . Mr. Edward 
Heath, when he ■ was ^ Prime 
Minister, -and by Mr. Anthony' 
Wedgwood Benn. when be was- 
Industry Secretary, V Das'. ; been 
largely ineffective. - j 

The report fronf the' inter- 
departmental committee chaired 
by Mr. Hans. Leisner, chief 
economic adviser to the Depart- 
ments of Industry,' Trade and 
Prices and Consumer Protection, 
will now be forwarded to the 
economic.' strategy committee of 
the Cabinet . 


The hope is that fr Grech 7 Paper 
will be approved by -the Cabinet] 
and published during May .out- 
lining the Governments; pro- 
.posals. - • ’• 

' . .Mr. Roy Hattersley,' Secretary 
for Prices and Consumer Protec- 
• tion. oae of the Ministers most 
■closely involved in competition 
policy, already has a major Bill 
-in draft but this is unliketyto- 
,be made, public : bafota 
eiectftmN V . V..V , ' *■ 

. 'The prospeev therefore, to-ftr 
a change in - competition and 
merger policy to be included in 
Labour’s next election manifesto, 
With '-'the Conservative Party 
claiming that Ministers are 
de&berately trying to^teel Tory 
clothes by placing emphasis on 
increased competition. '' 




accuse 
of doll 

premium 
offence^ 

Financial Times Repor 

THE.. TRIAL of a 
England official and. j. 
men, including. a'-V 
trader; for alleged-^ 
f-mlam offences -was 
for legal' argument- „ 
the jury, were- sWonS? 
at the Old Briley. -’-V 
It- Is expected 7 i 
to-day' aft er the legal 
has ended and will 
months. - 
The trial— the-' 
Treasury- and 

moves: ia 107t 

Martin "Wales. '• ft- 
England official, of 5 
Adrian - James;-S2; 

Bray, ’Berks.. -Leo 
39, panel beater 
on. .the; ‘Wolds; 

Taylor.? :«L buflflGt 
ton; West London, 

57, commodity trau.*. 

Essex, and Reginrid, 
company '' director, t 
Warwicks: ;.*.r ' • 

■'.AU.afe .accused 
together . and with 
and;. nther 'Pei 
, August ir-1876; _ 
l l97fr,;dislmne9fly'.fff 
from authorised 1 
investment - crima 
intention-'": Of ■/■?? 
depriving them -of the 
deception, i^maihl^ " 
pretending' that cmn 
they .would seU tn-i 
was" investment' ^ 
which: they’- were ^ 
receive the dollar pjja 
AH the defe ndant^ 

James, /also are c& ; 

. similar cpnspirtx^,: 
hieriod Jxnuarf .l:.* 

30,1975. Mr. Tay_, 
accused of .inciting: 

Ash betweeu A ~ ' 

April 39; 19767 
by a similar^ 

- Mr. Ash j& ac 
two dooimeiitfe . 
txipies -of -letters: 

Mr. -Keith . .Jap 
1975-7BrandMri 
with fnrtdshi 
tb the 

exchange contritf 
October; 1975; ' 
Mr^Guirdien ,, 
who hadbad-a^ 
with, a s6Mi^6 
since Januarj^T 
-TheSK.deBf 


homes fi 

THE Xf£ Alr Fc 
£460.000; . oh: ‘ iibj 
men's homes at. 
and Wpodbridge 


Suffolk- 


Money growth rate 4 needs 



^-1 


BY DAVID FREUD „ J." ' ‘ ;v ' 

IT WILL NOT be possible to counting some recovery in the countries in a small economy Inffstfon irill accel 

maintain a stable exchange rate inflation rate and a decline in open to international commer- yeay— unless 

unless the rate of monetary real monetary growth later this; dal forces, the exchange' rate- takoisoofejtf bring 
growth Is brought back below- year.” weakens and necessitates infla- under rontrbT";. ’ 

12 per cent, the London Busi- City brokers L. Messei also tion above the' international - Brokecr. : Fiel 
ness School Centre for Economic attribute the decline in sterling attribute the decline in sterling: Smith ^ agpect l 
Forecasting warns in its latest to the rapid growth of money average. • supply SKhteft tb. 

forecast supply in recent months. Messei says: “An important ahnualiseiVate ri i 

vh« cat-c fhnt utithnnt The firm says that under Inter- consequence of the 6.5 per cent last April to 14 -pe 

a stablefate - Se taraet of mrin- oation al monetarism if money depreciation of tile pound since &e_14.7. per cent 

tabling ringI?figS? SiSton “PPly is higher than in other late January, therefore, to that February.- ., 

would be virtually impossible. • •' ; 1 i' 111 " 

The recent drop in' the 
exchange value of sterling re- 
flects the strong growth in 
money supply over the last few 
months, says the centre. The 
disappointing trade figures were 




Coal plans hit by decline in dem 

BY JOHN LLOYD V. 

an additional depressing factor, '[’he NATIONAL Coal Board’s two. However, talks are; going on -—and .pn consistent 
Movement of money supply marketing plans will require re- between the Board and\BritiSfc delivery dates befng 
and sterling give a clear warn- vision because of low demand Steel on an agreement bn the_ More; -'seriously f\ 
lng for the Budget strategy, from its two largest customers, amount of coke taken each' year, hoard," electriciW-l 
Money supply growth in terms the Central Electricity Generat- Last month Sir Derek Ezra, hplieve that muen^ 
of M3 is now running ar an ing Board and the steel ^, al Board chairman 'criticised *** 
annualised rate of 19 per cent, industry. RritishSteel for enttine back ta^OckpUeJ^ 

and the centre argaes that an The demand from the steel r? 10 , - te ?: will mean.aredncei^ 

£8bn. borrowing requirement for Industry has fallen sharply In sharply on its orders ot coke in y ear - .. . v. 

the next year is the maximum the last financial year. The total ^e past year. The Jow future. d« 

consistent with 11-12 per cent, sales — including the Board's own - Earlier this year, the coal board ; eJictrtClty; board an 
monetary growth. coke ovens — were slightly more and the Central Electricity- industry will mean t 

"This is the figure to watch than 14m. tons for the financial Generating Board announced board’s target, .to 
In the Budget, rather than the year 1977-78, compared with that the generating board would CoaL” bfilSStn. tons 
net tax giveaway," it says. around 17m. tons for the pre- take an extra 3m. to 4nr. tons. in .be-reejfammeiL - wa 
T he longer leading indicators vious year. 1978-70, taking the electricity been doubts that jj- 

however, were indicating a pos- Within the overall figure, sales industry requirements up from cbnM kchteve.its go 

6ible decline In real monetary to the British Steel Corporation 69m. tons to 72m. tons. success' '- of .- the- 

growth later this year. The fell from nearly llm. tons int; ? However, the elertrielty board scheme has’ Incnneq 

centre says the indicators have 1976-77 to slightly more than- stress that the agreement. Is a‘ optimisjn* - • 
shown signs of weakening. 9m. tons In 1977-78. conditional one. depending on Now, Y9* ev ^ ft - 

Since they are based on finan- The Board sees no prospect of, the coal board raising the price -appe ars t o be shun 
rial indicators and reflect the an upturn in demand from the-of coal by no more than TO per of .^getting-, me 
rise in interest rates and fall in steel industry in the next year or - cent. — ^which it has already done selling it. . 
share prices, they could be “ dis- _ ■ " • ; i__ " 


to decentralise 


APPOINTMENTS 



London Transport 

BY LYNTCiN McLAIN, INDUSTRIAL STAFF 


Pirelli post for John 


PLANS TO decentralise London 
Transport were announced yes- 
terday by Mr. Ralph Bennett, 
the new chairman. He said tbat 
be would be disappointed if 
results for passengers did not 
show by the ^nd of the year. 

He could not ignore the reality 
that the quality of bus and train 
services had | deteriorated over 
the years. 

He also admitted that rolling 
stock, stations and garages were 
not as spick-- and span qg they 
could be. A persistent shortage 
of cash and manpower had 
started to take its toll. 

Nearly 700 more drivers 
would still be needed by the 
end of Ihe year. 

The delegation of more 
responsibility to Mr. David 
Quarmby, the newly-appointed 
managing director for buses, 
and Mr. Michael Robbins, 
managing director of railways. 


would help to “put a human 
face on the organisation.” 

Local bus - garage managers 
would be set specific targets and 
would be responsible for meeting 
tbetn. “We want people at the 
top of our local organisations to 
be known as rbe London Trans- 
port man or woman for Croydon, 
of Finsbury Park or Chiswick,” 
Mr. Bennett said. 

One of the main changes for 
the running of London’s buses 
wdll be the use of a quality 
service index. 


Cognac price 
increase plan 

THE PRICE of Cdurvoisier 
Cognac Three Star Luxe will be 
increased by slightly more than 
£2 a case immediately after the 
BudgeL 


Mr. John Carr Is Co become 
managing director of PIRELLI 
LIMITED. lyre manufacturer, 
from July 3. He will succeed Mr. 
Norman Mould, wtao retires in 
June. 

At present general manager of 
the group purchasing and man- 
agement services division of 
Dunlop Limited. Mr. Carr will join 
Pirelli on May 15 to begin a six- 
week handover period, working 
with Mr. Mould. 

Mr. Carr joined the central 
purchasing department of Dunlop 
in 1952, spending six years in 
London and Singapore specialis- 
ing in the Arid of natural rubber. 
He returned to London in 1958 
and for the following seven years 
was concerned with purchasing in 
the company's materials supply 
division. After a period with 
the general rubber goods division. 
Mr. Carr was made general 
manager, materials supply divi- 
sion, in 1973 and was recently 
appointed to bis present post 

Pirelli Limited makes radial ply 
car aod truck tyres, cross ply 
truck tyres, leisure footwear and 


.-seating suspension equipment for- 
the- -world’s motor and furniture 
Industries. Its factories are at 
Burton-on-Trent and Carlisle. 

. Mr. D. A. PInn, managing 
-director, has been elected deputy 
-chairman of ALCAN ALUMINIUM 
(UJC). Mr. D. M. Culver and Mr. 
P.J.J. Rich have resigned, follow- 
ing their recent appointments in 
the Alcan Group (Mr. Culver as 
president of Alcan Aluminium 
Limited of Montreal and Mr. Rich 
as executive vice-president of 
Alcan Aluminium Limited with 
: responsibility for North and South 
America)- Mr. Eric F, West has 
been made a director of tbe 
company. He is Alcan Aluminium 
Limited’s executive vice-president 
With responsibility for Europe and 
Africa. 

Mr. Gerald R. James has been 
appointed a director of 
BSLHAVEN BREWERY GROUP. 
.* 

Mr. T. J. Swete. chief executive 


Frankfurt, has been 
tha Board of HILL - 
CO., London. ^ 

Mr. John Rowleyj 
appointed to tbe 
HESTAiR. He 
director of SOS 
subsidiary. * 

Mr. Harry Lottboos*. 
BANK branch ®fBi 
Market Street- Brad* 
corporate manager a* 
to control Ihe bran™ 
Powell will be brant 
and Mr. Baity 
become deputy mauaf 

Mr. Frank Walts 

FISKE AND CO., stoc 






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8 


i 


BUSINESS AND INVESTMENT OPPORTUNITIES 


READERS ARE RECOMMENDED TO TAKE APPROPRIATE PROFESSIONAL ADVICE BEFORE ENTERING' INTO COMMITMENTS 


WHAT ARE MORE 
THAN 80 GERMAN AND 
BRITISH FIRMS 
DOING IN 

NORTH CAROLINA? 


They're doing very weif, thank you. 

Because North Carolina offers one of the best economic climates 
in North America. Along with one of the most livable physical climates. 


From April 3 through April 13, to give you a chance to learn more, 
Govenor James B. Hunt and members of the North Carolina Trade and 
Industrial Investment Delegation will be in the following cities : 


Dusseldorf, Germany 
Stuttgart Germany 
Zurich, Switzerland 
♦London, England 
Birmingham, England 
Manchester, England 


April 3 and 4 
April 5 and 6 
April 6 and 7 
April 10 and 11 
April 12 and 13 
April 13 and 14 


If you're considering a production facility in North America, makean 
appointment to meet the North Carolina delegation by contacting : 


Mr. E. Ray Denny, Director 
State of North Carolina 
56 Berliner Allee 
4 Dusseldorf. West Germany 
49/21 1-378015 
Telex: <841} 6581846 


or 


Mr. James R. Hinkle, Director 
International Division 
N. C, Department of Commerce 
430 N. Salisbury Street 
Raleigh. North Carolina 27611 
919/733-7193 ■ Tefex 57-9480 


NORTH CAROLINA 


* Delegation members only 




This cash voucher 
intittes your company 
loan immediate 


75% CASH 
AGAINST 
INVOICES 

Snojecttoapomsal j 



Need Cash Now? You’ ve' got it right there.on your 
books! Confidential Invoice Discounting Ltd gives you 
75% cash against invoices — money you can put to work • 
today. Our invoice discounting system is entirely 
confidential Your clients remain totally unaware' of its 
existence. For the full facts post this voucher now or 
phone us direct. 

Confidential invoice Discounting Ltd. 

Circus House, New England Road, Brighton, Sussex BN 1 4GX 

|6670<rTef 


Telephone: Brighton (0273) 66730. Telex: 67382. 
AlsoBiimingimn. CmrUH Leeds, London. Manchester; 
A subsidiary of International Factors Limited. 



Our business is 


merging your business, 
Successfully. 

36 CHESHAM PLACE LONDON SWl. 01-235 4551 



TO CHAIRMAN + + + " 

J*;**? yj- VK 2 

Vi HAVE ASSESSED HULL AS POTENTIAL LOCATION HEW PROJECT + 

1/ r ••••• v:--v 

f % STOP + IT IS NEAREST MAJOR BUSINESS CENTRE LONDON WITH ^ 

•: • • s--?- 

|>& FULL DEVELOPMENT AREA' GRANTS AND FINE COMMUNICATIONS Hp* 
im BOTH U.K. AND EUROPE + STOP + NEW FACTORIES RE 


OCCUPATION + STOP + MY VIEW HULL EASILY BEST 



+ RECOWEHD MEETING WITH IAN HOUEN DIRECTOR 
INDUSTRIAL DEVELOPMENT 77 LOWGATE HULL PHONE 223111 





agomuzi 


Ue 


113, JONGS ROAD, LONDON S.W-3 
THE VALUABLE LEASE, FURNITURE. FIXTURES 
AND FITTINGS, GOODWILL AND STOCKS IN TRADE 
OF THIS VERY SUCCESSFUL HIGH-FASHION MENS- 
WEAR BUSINESS FOR SALE 

Interested principals should contact Mr. Livesey at 01-386 6673. 


CAPITAL AVAILABLE 


For outright purchase or participation in established business. 
Book Shops or other Retail trades will be considered. Locality: 
South-East England/Easc Anglia. Minimum turnover £50,000 p.a. 
Write Box G.1684. Financial Times, 

10, Cannon Street, EC4P 4BY. 


AN IMPORTANT RIDING SCHOOL 


mn ai * private limited company requires an investment of between £60.000 
and 690,000 further capital in- a form to be agreed w allow expansion and 
development. Of interest to lonrdne concerned with either catering, equestrian 
competition hones or long term land and property investment Situated in 
North Midlands the establishment has a present asset value of about C\ 30.000 
.including land, buildings, horses and equestrian equipment and employs a full- 
ume teaching staff of five qualified instructors plus other employees. 

Enquire in confidence In the first instance to Bee G.1695, 

Financial Timer, tO. Cannon Street, EC4P 4BY. 


CONSTRUCTION GROUP 
SEEK PLANT HIRE 


AND SALES BUSINESS 

An expanding group are looking for suitable 
acquisitions in the Plant Hire and Plant Sales sector. 
AU areas of the UiC: are being considered. Turnover 
of interested party should be at least £200,000. 
Write Box G.16S2, Financial Times, 10, Cannon 
Street EC4P 4BY. • 


One of our celebrity name Directors is leavdng this country 
and is therefore selling his part of our company. We thus 
have a rare opportunity for an investor to become a Director 
of our busy entertainment company which deals with 
established artists world-wide. We are seeking a silent 
partner or someone who would like to take an interest in 
the business administration side of the company's activities. 
Ideal for a person who would enjoy the glamour of show 
business. Interested parties should write to Box G.1683, 
Financial Times, 10, Cannon Street, EC4P 4BY, or telephone 
01-262 8212 in the evenings. 


FINANCE AVAILABLE UP TO £50,000 


Bank will consider financing small to medium size- businesses 
experiencing cash flow problems or seeking capital for new ventures. 
Medium term overdrafts and. loans generally on a secured basis are 
available in addition to the usual range of banking facilities. 

Please write giving full details of proposition and security 
available to Box G.1277, 

Financial Times, 10, Cannon Street, E C4P 4BY. 


★ 

★ 

★ 

★ 


DEBT 

COLLECTION 
CASH FLOW 
CONTROL ; 
Competitive Rates 
High Percentage Recovery 
No collection — No charge 
Daily reporting system - 


Our clients include well-known national 
companies id mans Industries. 

Please write or phone far 
FREE BROCHURE 
Account Collection Services Lid. 

=0 North Street. Ashford. Kent 
Phone: Ashford iOS33) 3MBV5 


145,000 SQ. FT. 

WEST END 
New Office J4.Q. 

TO LET 


. No O.D.P. Required 
OCCUPATION MID 1981 


Principals please contort Box G.1694, 
Financial Times. TO. Cannon Street, 
EC4P 4B7. 


A STRANGE ANIMAL? 


I tave a successful carver as a Aim and television producer, director and 
Writer whh BBC, ITV, and overseas companies. 

However, I now wane to widen my horizons and move into an ana of commerce 
Or industry where my Ideas, imagination and initiative, together with my 
experience in comma mentions end the media would be useful. 

Creative people are not necessarily strange aesthetic animals. ,1 am looking 
for the opportunity to use my talents and experience to develop a career 
with a commercial purpose. 

If you would like to talk, please write to Bax 6.1602. 

Financial Times, f0. Cannon Street, EC4P 4BY. , 


SHARES IN UNLISTED PUBLIC 
COMPANIES WANTED! 


Any quantity considered. 

P/ease reply to Bax G. 1685. Financial Timesj 


10. Cannon Street. EC4P 4BY. 


INVESTMENT 

CAPITAL 


We are a public company which wiihea 
Co merge with or acquire a business 
with good product management and 
a record of profits. Companies with 
after tax profits of £40,000 are likely 
to be of a suitable size. 


Principals only reply to Box (7.1687, 
Financial Times, fO, Cannon Street, 
EC4P 4BT. 


TOYS 


A public company which is a major 
force in the toy field is seeking os 
expand by acquiring a Toy Manufac- 
turing Company or by the purchase 
of effect relating to the manufacture 
of existing products. 

All replies In confidence to: 


The Chairman. 


SHARNA WARE (MFG.) LD„ 
Lumb Mill, Droylsden. 
Manchester M35 7LD. 


OVERSEAS COMPANY REGISTRATIONS FOR SALE 


Professional advisers are Instructed to dispose of a number of fiscally 
idviiiUdeotu; unused t ratline and investment company rejristrnuons located in 
inc onshore Siertina Area and also In Liberia, uie Canaan islands and Hon# 
Kona. Please apply in strictest confidence io: — 

MICHAEL, FORREST & PARTNERS, 

(Chartered Accountants!, 

P.O. Box 124, Eonlcr ft Law Howe. La Matte Street. 

St. Heller. Jersey. Channel Islands. 


SAUDI ARABIA 

Company. A Business Law 

UNITED ARAB EMIRATES 

Company * Business Law 

LIBYA 

Company s Business Law 

QATAR 

Company * Business Law 

OMAN 

Company 4 Business Law 
Five complete expositions cover I DO all 
Business. Commercial. Tax. Oil. Banks 
a Company Laws. Edited, bv M. A. 
Nara. Lawyer. Hardback— approxi- 


Oxford University Press. £35 
plus o. and o. Order from: — - 

ARAB CONSULTANTS 
FOR ARABIC LAW 

1A, Ewitsmnre Gardens Mews. 

LONDON SW7 1HX .... 
Telj 01-589 4399. Tefex-. 91S503 


MANUFACTURERS OF 
ROTARY MOWERS . 

and Grass Cutters in France 
wish to negotiate with British 
i garden equipment Distributors 

- on national basis- • 

Write Box G.I6S9, Flnondaf Time*, 
10. Cannon Street,- EC4P 4BT. 


COMPANY DIRECTOR 


with extensive contacts goretnmen* 
and commercial circles Sri Uanka ■* 
making s three week visit w that 
country in late April and « prepared 
to undertake repreterKatien on betatf 
of third ptrdu on fte or commission 
basis. 


Telephone Reigate: 40521 or 
Telex 87515 ATTN LEACH 


GENEVA 


Full Service is our Business 

• Law and Taxation. 

• Mailbox telephone and 
telex services. 

• Translations and secre- 
tarial services. 

• Formation, domiciliation, 
and administration of 
Swiss and foreign com- 
panies. 

Full confidence and discretion 

BUSINESS ADVISORY SERVICE 
* P ku i a - r aHo. law Geneva 
Tel: 35 05 qa. Telex: 23342 


IBM ELECTRIC 
TYPEWRITERS 


Factory rtarndhioned. and guaranteed 
by IBM. Buy, uve up to 40 p-c. 
Leaw 3 years from £3.70 meekly. 
Rent from £29 per month. 
Phone: 01-441 2345 


COMPANIES FORMED 

Expert) y, speedily, throughout (he 
world. Compam our price*. 

ENGLAND £49 

ISLE OF MAN £98.44 

GUERNSEY <250 

LIBERIA U2S.S87D 

SELECT COMPANT FORMATION 

Tel: Doughs (06241 23718 
1. Athol Street. Doughs, l-o-M. 
Telex: 623554. 


Leading French THERMOSTAT Manufacturing Company 

FOR SALE | 

Head Office and 2 Factories near Paris 
Turnover £7m. 480 Employees. Wide range of trfermostacs for 
industrial and domestic use.. Currently needling financial support. 

Fof detoils write In confidence to Box f.1001. 

Financial Times, 10. Cannon Street, EC4P i 


*BY 


KRUGERRANDS 
AND SOVEREIGNS 


Bought and Sold 
in strictest confidence. 


Shaw Cavendish & Co. 
(Bullion Dealers) 
Cavendish House ‘ 
Chester 24315 


GOLF COURSE 


Applications are invited for the 
development of a first class soil 
coarse fa aorta la ring Umbered deer 
parte of about 100 acres in North 
Warwickshire og a long lease. 

OblUdo planning permission obtained. 
Informal) bo on badutrooixi and 
finance available on sale developer 
basis or parti dpatlog with owners 
should be given. 


Apply to the Agents: 

BERRY BROS. & LEGGE 
11 Market Place, Kettering 
North ampto nshire 
Kef. BIFHE 


YOUR MAN IN EUROPE 

is based in the hears of the Continent. 
Mis team provides prompt international 
coverage trom its communications and 
finance centra: Frankfurt, negotiates 
and corresponds for you in English, 
German, French", Spanish, Dutch and' 
Japanese. Available: Comprehensive 
international experience. Europe-wide 
bonnets, legal and tax ojgjerts, secre- 
tarial and conference facilities. Open 
to any aerious proposals, flexible and 
adaptable. Initial enquiries to: 

Nr. Hens. Tel. {6lt>31 64041 
Telex 417954. p.O.B. 201161. 6072 
Frankfurt/ Dnefeidi, W. Germany. 


Old Established 
Foundry 1 
Business 


With capacity jfor grey iron 
casting floor and ' box moulding 
2-40 fcons. 

Location West Midlands 
Skilled labour force 
Excellent goodwill 


Principals only write Box G.16B6. 
Financial Times. 10. Gann on Street. 
EC4P 4BY. 


THE ANSWER TO 
YOUR PROBLEMS ? 
Raising Finance? 

Resigning a directorship? 
Cash flow problems 


Effective and streamlined advice 
available throughout U-K. 
Telephone: BRIGHTON 672222 - 


OFFICE EQUIPMENT 


Teak Conference TUSe 1D"x«’ £145.00 
Cbatwood ' Document Sate 
.. 6' * 30*. Like New , 

Mahagony Desks S' * 3' 


£350.00 


Drawers, Believed ex Heals 
' Too 


£75.00 


£155.00 


£ 110.00 


£135.00 


Teak Desk 6' x 3’. Lined 
as new. G Drawers .... 

Philips Dictating machine 
_ latest model with mic. . . 

Adler 210 Electric Type- 
writer 

8. Swivel, Typists' chairs In 

Tweed. «ch . ......... 

6. ditto. In Vinyl 
Drawing Board and Stand . . 

Filing Cabinets from ... 

COMMERCIAL EQUIPMENT CO. 
329. Grays Inn Road. wci. 937 m$3 


£24.00 

£ 20.00 

£75.00 

£35.00 


LIMITED COMPANIES 


FORMED BY EXPERTS 
FOR £78 INCLUSIVE 
READY MADE £83 
COMPANY SEARCHES 
EXPRESS CO. REGISTRATIONS LTD. 
30. City Road. E.C1. 

01-618 S434/5/7361. 9936. 


MOTOR DEALERS/ 
COACHBUILDERS 


Substantial business, 2m. + turnover, 
sjnuted in fasi srovrinc area of East 
Midland*, wishes to scU/mersc trllb 
quoted Company. Good asset backlog, 
nee Heat franchises and growth 
poH-nUal. 

Principals only please, apply to The 
Chairman. Bus G.1S5S, Financial 
rimes. 10. Cannon 5trL<el, EC1P JBY. 


RESIDENTIAL 

DEVELOPMENT COMPANY 
FOR SALE 


liYSBC fieff- 1 

LAND BANK IN EAST ANGLIA 

with planning oenaiasion for C-i0 units 
Substantial uz loss advanianPK 
Principals only. Writ? Box G.1693. 
Financial Time's. 10. Cannon St reel. 
ECJP 4BY. 


ATTENTION 
CONSULTANTS 
Experienced, reputable, entrepreneur*! 
bmiiKMinan, a non-oxocutive director 
of a public company, wishes to take 
advantage of Ms wide connection in 
commerce and Industry by acting as 
a consultant to a well emblJihed 
consultancy or business braking com, 
pany on a results only basis, 

Write Boa G .1690. Financial Tima*. 

JO, Cannon Street, EC4P 4BY. 


TAX UCU4PT company with unique name 
available lor Immediate ula duo to 
changed circumstances. Indemnities I 
oJVenj — Write Box G.1601, Financial I 


Timas. 10. Cannon Street Ec'aP 4BY.. 
4TSF “ 


CREATIVE INTERIORS. Reception Areas. 
Offices, Board- ooms. Slioos. Clubs, 
Hotels, Restaurants. Design consultancy* 
Buck lev Barnes Associates Limited. 
01-ED3 $404. 

El A WEEK tor EC2 address or phone 
messagas- Combined rates + telex under 
£3 a week. Pmtise offices near Stock 
Exchunoo. _ Message Minders Inter- 
Telex 831 1 725. i 

FINANCIAL BACKER wanted for antique! 
exporting company. — Write Box G.1652. 
Financial Times. 10, Cannon Streol 
EC«P 4BT. 

VOUNQ AGGRESSIVE artistes manage- 
ment team seeks finance far expansion 
Into all embracing music situation to 
fficfode record I no studio, agonev. pub- 
lish rip and production — minimum 
facility ol Lioo.ooo required. — Write 
Bo* G.1692. Financial Times, 10. 
Cannon Street' EC4P 4BY. 






Financial Times Tuesday April 4 X97 



urrencies on A»ril j - ^ 


rates 

^rencie^ on' April 3 197a In ‘aome 

cases- rates are nominal. -■ Market mips am the 

Sev a fre°iU^i n ^ a h^ setting rates except where’ 
10 J 1 8 T»th»wi». in some. cases* 
SSiS been caloBlated. from those of 

foreign currencies to whfoh they; are tie<L 

DJC, and most of the 
controlled and the 
rates mm should not be taken' as beine 
J^wUarTransaSbn without 
referenc e to an authorised dealer: • - 

Abbreviations: (SY member of .the ‘sterUns 
area other than Schedule . . Territories: (k) 



raie; tn^.i not avauaoie- ja) appro^WJ 

no direct quotation avauable; (sg) 

(bg) buying .rate: (oom.) nornff 
exchange certificates (p> based a 

rfnllup nsritiM-STin -on inn Ifarlin. 


dollar panties ' and goi^ storting 
fBkl hankers’ rate; (Bas) basic rairf 
commercial rate; (cn). convertible rate 
financial rate. ■••••. 



Sharp fluctuations have been see. 
in the foreign exchange market. Raw 
table, below are not In all cases ' 

. on the dates shown. 


Plane and Local Unit 


Cash flow proi}isms?Then cash this! 


Afghanistan 

Alimnta Luk 

Algeria.™ Diner 


83JHJ 
hWJMWS 
7JS4JM 

t«aos • 

' I1JL. 

6.W5. 

Argeutma — Ar. Peso Pre* Hajla- . 1^(2 . 


inifa™ iFreneh Franq , 

1 StMiikuh |jewU 


Yalufl of 


■TngTTta .. Kwauza 
Antlgim (Si... 5LCanhbean.fi i 


Auxuajia <S». Australian S 

Auetrh, defailitng . . 

Anjri* Pqrtug- EwndoJ 

Bahamss iSj.Ba. Dolfap 
Banafedeah^Tbfca 

(S>_ n imr 

Balenrie. I*. Spa. Pwb 
BxrtMdnafS) ButortoNrtt 


[MCU 


-&D 

7L« 


--SR.T0- 

- 0 . 7 SI 

14S.06 

S.758 


HJiermxny 

ri. • Wort 

ubanxiS) 

CiUnaltnr (fv>- 
Citlbert I«...... 

Otww...: 

Greoafanri 

fJceojuin (Si— 
Guadeloupe... 
Gauti. 

Gnatoreala-.. 
■gulna* Bep.- 
QuiUfiBianu 

(SI— - 


Belginm B. Franc 

Belize B S 

Benin C.F.A. Fau 

Bennoft* I3)_ Bda. S 

B Imran ... ip<u»n ||ap 

Bolivia Bolivian P< 


BotoWana (SL PuU 

Bcaxll Ctureiro tt 

BrVi^fiaI»{Sj L'-SJs 

Brunei (S) Brunei 9 . 

Bol|Hrb Lev 


Burma — l^-nt 


Burundi., Burundi Fame 


Camers'n So C.F.A. Franc ' 
Canada.. Canadian S 
Canary Is SpanUli Panel* 


S8J» 
i 5.758 
: 4S8 
14880 
16-74225 
- BTJ® 


,14470 

41.85 

14680 

4.508 

rjf 


T 24a 


T70J56 


-426 

2.1240 

14106 


Tape Venle l. Cape V &cado 
CiytnmlwSl Cay. I. S 
Cent. Af. Bp— CJ'.A. Frand 
Chad C.TA. Franc 


Chile C.Peao 

C hina Bn nm in m Yota 

Coltanfaa C. Pew 

Comoros I’d*. C.FjL, Framv ' 
Congo iB'iiej .. C.F.A. Franc 

CostaJUrik— . Cokm 


Cuba Cuban Pew 

Cnmu CS) Cyrns £ 


I Caacboslovak. JEomha 


Denmark— Danish Krona 

□iUxwtl Fr. 

Dominies tSi~ E-Carttibton $ 
Domin. Bep. M DomialcaD Pool 


n^. 

.1.5887 . 
426 
4» 


(JBIO BlJZB 
5.TB54 
(F) 71.48 
42fi 
- .426 


18466 ‘ 

1-4848' 

D.702S 

i i.eomi 10-50 
>{ntm68 
Icm74B 
115254 
' 5251 mO 
8.0485 


Pluto and local Holt 


iDbutaohmark 


I 

f 

Cedi 

G1btaU«r£ 
Auxc. Dollar 
DitduiM 
Danish Kroner 
K. Oarribean f 
Local Piano 
VjS. S 
QwsUal 
Slly 



(•nyiuieeel 
Gourde - 
Lempira 
HJLS 
Forint 


Value of 
£ Sterling 


lran>i_.„ 

llMu_i. 

l lrSi K«p‘lk).. 

fistael — 

Italy — 

Ivoty Coast... 
Jamaica Osl-. 

Aapan... 

Jordan. {SI..— 
Sunpadua. 

MC.va'181 

Korea l.Nvh)— 
Kona (Sthu. 
Kuwait (Stlii. 

Laos 

Lebanon ..... 

Lemibo 

Liberia... 

Libya 

Idecht’mdn.., 

Luxembourg, 


Kial V 
Iraq Dinar 
Irish £ 

Israel £ 

Lira 

C.P.A. Fiano 

Jaiuaicalfallar 

Yen 

■Ionian Dinar 
Biel 

Kenya Shilling 

Won ' 

i\’on 

Kuwait Dinar 
Kip Pot Pot 
Lebanese -C 
S. African Band 
Idhorian S 
Libyan Dinar 

Swiss Franc 
Lux Franc 


I Ecuador Sucre 

Kgyyt Kgyptian £ 


Ethiopia ....... 'Ethiopian Birr 

Eq'C.'l Guinea Peseta 


[ Falkland I*. 

iSj 

Fare la. 

Fiji Is..: 

Finland 

Fnne....... 

Fr. C’tyinM* 
Fr. Guiana — 
Fr. Pac. Is.... 


] Falkland Is. £1 


ka 


ish Knm* 
FljfS ' 
Markka 
French Franc 
C.F.V. Frapo 
Local Franc 
C-F.P. Franc 


Gabon C.F^V. Franc 

Gambia Dalasi 

Gra X., }«—*' 


i 10)48.88 

1(F) 4847 

Wuw 

tQS.87119 

749.06 


14 ' 

.' 10.523a 
1.8188. 
7.77 
•’.848 
' 42B ■ 
.842 
1844 


42E 

54658 


.2.78 If 


Madeira....... 

Malagacy Bp. 

rin <d)_ 
, vuU-lS) 

It Bp^ 

Marta (S)...._ 
Martlniqae.. 
UmriluiL.. 
Mauritius (tn. 

Mexico^. 

Mlqaekm 
W n fnro 


Pataca 
PottUX’eefiKudol 
MG Frana 
Kwacha 
ftingglt 
3IalKupct 

Stall Prana 
Ualt«e£ 

Local Praao 




pee 

Mexican Pom 
C.PJV. Prana 
French Franc 


Mongolia J— 

MootoRrat ~. 

Morocco 

Mozambique. 


Tugrik 

H. Carrlhean 9 
Dirham 
Mob. fiecudo 


Baurn, la Aust. Dollar 

Nonl A'epalen Rupee 

Ketherlands.. Gnlldw " " . 
Meth. Ant'len. AmDlian Guild 

.Vb«- Hebrides Doliar 

71. Zealand (Si KZ. Dollar 
Vieanirua. — ConJobu 
TiTger Bp-..;- C*FA Pram 
Nigeria (S3 — Kaira 
Norway Xrnrg. Kiqme 


Oman Sultan- 1 ^ o,^ 
ace of (Si.... * 


PafcistaH Pkst. Rupee 

Panama—. Balboa \ 


Fapuah'.G.(S) Kina 


5.75U 

Z.M<^ 
1.00 
1.8532 
B8472 
HL528. 
8.0485 
842 
14688 
T.8680 
584814 
78:508' 
4.7634 
9448 
5.77 

. 8.6515 • 

[(own) 72. BB 
ICE) (W95B45 
80440 
W.742» 
77542 
(Aj 151 
0450241. 
140 
38:75 

428 

2.8257 

403 

0-5B86(Bg) 

22414^ 

14.6060 

148«(D 
00145 
0411 
573.6 
' S4752 
1.62812 
1.8376 
(P) 0-5B50 

9.4575- 

88.66 


S4B5I 
78.46 
428 
1.588 
. 4.409 
7.54124 
182 ~ 
0.7225 
842 
88.1278 
114515 
4246 
428 


842 

jfctyLK* Iff 

5.0483 
7401 -a) 
80408 


1.8352 
w raq 

4418 
94437 
197487 
1.833! 
1.8271 
13-17 . 
428 

LIB 118 

8495 • 


0.845 ■ 


18.45 


145*2 


Place and Local Halt 


Paraguay Guarani 


P’prs D. Bp . ... 

of remen.(S)S. Yemen Dha^ 

Peni.......-;.„ So) ’ 1 

Philippine*-. Pb. peso 

Poland Zloty 


Ftas. E«wta 

Timor SwmdQ 
late -Pg-e. Bmado . 

-ieo— .CS.* - 

Qatar (S^.- — Qatar Kyal 
Reunion 

lie d*. la — - French Frane 
Rhodraia— . Bhufauan | 

Romania Leu . {L 

Kwaoda Bwaaia Praiaj 

SLCairlsto- 

pher (8) H. Cufabera S 

StHWena-l «t. Holn»£ 

Be. Locis(S)„S. CaribbranS 
Sc, Pierre — : UJ -A. Franc 
St.Vincentpj) s. Caribbean ■ 
Salvador BB— Colon 
Samoa IStaU. VJB. $ 
SanJJarioo— ItaHan Lire 

Sao Tome Pave. Bnmdir 

Saudi Arabia. Kyal 
S taw g ra l^-M.— C-F-<. Fraud 
toycb*Ua_,> ci. Rupee - ' 
Sterr Le'nefSf Leone 
Singap«e(?i). ^InjpipOrr 5 
bulunmn liftjj Amtralfu S 
Somali Hep—. Stun Shilling 
Sth. Africa iS) Band 
S-.W. African 
Territories (ij) & a. Band 

Spain. Peseta 

Span. Port* h) 
north Africa. IVsera 
Sr. Lanka (6.) SJ. Rupee 
Sudan Rp..— Sudan £ 

Sortoim . 8. Gilder 
SwnjKilMd<S.i Z4jujgeni 

Sweden. 6. Knma_ 

Svrlteerianrt - Svrias-fnma 

Bvria— Syria £ 

Taivtan. — Jfew hlnn 
Tanzania «L L Thou Shilling 

Thailand.; Baht 

Togo fin—. — OJA. Pnnr 
Tonga la. (3.) Pa'anpa * 
TrinWafl ‘ IS.). Trin. ft Vobajm , 

Tunisia .Tunisian Dinar ! 

Turkey Turkish lin^ 

Turks ft CTs— DjS. S 
■Tuvaln Australian ft - • 




TT ynnria (S.). Ug. Shilling 
0«. Scat 


Stale* l UJs. Dollar 
OruRoay Uruguay Pern. 

0’cd.A’bKatls- D^l.B. Dirham 
D^jSJL Rouble 
Upper Votte.. C.F_A, Pram 

Vatican Italian Lire 
Venezuela. Bolivar 


VtotnamiStM Dung . 


VtomamfSthj Piastre 
Virgin l».b'J5. U.S. Dnilar 
Weatem ■ 

Hninm, (S) Samoan ub 


Yemen- Kyal 

... Sew I Dinar 


Yuicoelavia ... 

Zaire Bp.. —2airo - - 
Zamhi* .... kwacha. - 


Civil Sc; 

threaten 


over 22-. 


That part of the French corannudt? In Africa formerly 
part of French West Africa or Freadh Banahninl Africa. 
Rupees per pound- 

The AuevUyu has replaced the CPA franc;. The exchange 
was made al a rate of CFA FraJ Id. pse. unit of the 
new currency. . . 


. 1 General rates of oil and iron exports TBAHJ.-.' 
- t Based nit cross rates aniiux RnsNan xouMfc - 
•* Bate Is .the Transfer marteet farntroOedl,' • ■. 
. rtf Rate Is now based on 2 Barbados £ u the doth 
’ «: Kow one. official rate 
f Foilotrine 54 per rent, devaluation. aj 


Thomas 

COOk Bankei 


Thomas Cook Travellers Cheqi 


AFINANOALTIMES SURVEY 


SRI LANKA 


MAY 31 1978 


Rolls sit- 
Wks hre; 


~L‘. 


The Financial Times is preparing a major survey on Sri Lank! 
The Survey will examine in depth many aspects of Sri lanka 
economic, trade and business life. The provisional editoru 
FOREIGN POLICY Nortalignment as seen by Mrs. Bandaranaike; tt ; 
synopsis is set ont below. 

INTRODUCTION Victory of United National Party at the Polls; co) 
stitutional changes in the light of Mr. Junius Jayawardene i taSmgov* 
the presidency; need for national reconciliation after bitter- eiecrucj 
struggle; turnabout in economic policy. 

THE ECONOMY Changes brouaht in by the Government’s first buc^e 
liberalisation of exchange controls and floating of the currency; p*ia sli: 
out of subsidies and import controls. 

POUTICS Reasons behind Mrs. Bandaranaike’s defeat; rout of her part 
and its allies; progr amm e of the United National Party. 


EXPORT ZONE One of the key points in the Government’s programs 

adJ 


to attract foreign investment and. revitalise industry- 

UNP’s interpretation of non-alignment; relations with. Indian Ocea 
states. 

LABOUR Nation of active trade unions; their role in politics; attitud 
towards Government’s new economic policy. •-. 

AGRICULTURE Irrigation schemes; raising farm output; current year 
prospects. - . • -• ‘ : 

MANUFACTURING SECTOR* Private investment depressed bywntio? 
of past; changing Govenunent policy; impact of exchange ana imp 
liberalisation. ■ ■ - ■ • . . . ... 

THE TAMILS Vocal minority who have become main -opposition parti 
demands for autonomy; grievances over jobs and education. 

WELFARE SYSTEM One of the most extensive of developing states 
schools and miiversities; l food subsidies; transport; health care. 

TOURISM High promise .as source of foreign exchange; developroen 
of coastal resorts. ; charter packages to Sri Lanka. 

PROFILES . Leading personalitiesin the new administration. 

TRADITIONAL COMMODITY EXPORTS 

For further details oa the editorial content and advertising rates plea® 
contact Nicholas Whitehead, _ 

Financial Tunes, ^ Bracken House, 10 Cannon Street, London ecaf v > 
Tel: 01-248 8000 Ext 7112 


6ritis ‘> Ain, 




n 


c rew 


P 


FINANCTALTIMES 

EUROPE’S BUSINESS NEWSPAPER 


The content and nobUcniioa dales o t Surveys in the Ftonnefci* Time* 
arc RuljJecc ta ebaue at the discretion ot the Editor. 












ginactial^'Kmes Tuesday- April 4 1978 


sSLCa'*, 


Jenkins takes hand 
in hanks campaign 

BY Nldt GARlibT, LABOUR STAFF 

MK. CLIVE JENKINS,. general NUBE conference at the week- talks then it would be better to 
salary, -of toe Association of end that in effect A STMS do them with ASTMS. 
scientific, Technical and Man a- should keep out of banking and This is partly becausd ASTMS 
. genal Staffs, has^ taken a hand it should stop recruiting and philosophy of company-level 
. — . . «r jm. . * “W attamps to prod bank organising in insurance. . negotiations is more in line with 

- .... . Staff assodationsintomerger Th e official line of the con- llla t of the staff associations than 

By Our Own Correspondent “O’® will further federati^nflvhlch comDSL to e NUBE’s more national approach. 

^ •••• •• • • • ” «»Wtter the: feeding- between s tS as 3 odaS I t^SlXare lt also refta* 3 antagonism 

J MORE THAN 2,000 boilermakers' j? 11 * 0 ®* 1,1 the. finance industry. N^onar Westoinshsr^Md 0,81 has developed between 
*■* 0 Y ol ®J overwhelmingly yesterday - Stace the . jn#dle of last Llovds. is that no action will be and the staff associations, 

k an favour of a pv'KmdS mohth.wto the National Union iSEr*? the “ feSS " bvMr Mr - Wilfred Aspinill. the con- 
*** a^ed at securing industrial of-" Bank . Employees formally JHSnfmtil ■ the 5™iry into federation general secretary, r-«- 
„ : Pwce In the five T?neside ah£- withdrew from joint negotiating JHJSJ SSks’ staff reiresenta- yesterday that Mr. Murray’s 
yards- of Swan Banter.- machinery in tot (tearing banS tion ends representa tude on spheres of influen(:e was 

■ Only 29$ aeh voted- ag*fatf * lawe paztly>desigaed to- break . of no concern lo his union, 

r- the common . wages -'agreement the influence of the staff associa- The enquiry is Doing set up in in insurance, a poorly 
''•'^ .already accepted- by 5J)00 other tiOhS, Mr. Jenkins has twice r ®sponse to the negotiating unionised area of 200,000 
i.,... ' tradesmen in the Tyne vards. written to the Confederation of shambles the five major clearing workers, it is NUBE that has 
*■ The aErrpprapnt utoi.< k_ Bank Staffs AssoniationR. the backs are in following the with- thrown the cat amooc the 


.Taic-sa. 


. •" the month, will ' end effectively V The first letter suctfested ore- iv • , Tbe union .which has only a 

, mter-union pay rows .a^ffUS BrnSZSTuffiffiSmUSi. DlSCUSSlOn 

- 4*-«h. WPra^tatilfc in the A split however, has emerged se * 0 r h£s Agreed merger 

'-■* e ' inst ■ < ±„ recently banks.- within the confederation. The terms with the SfiOO-strone 

^ fr^pSid.™^ * f57 ? u - otd ” The second discussal his Lloyds staff association Iras Guardian Royal Exchange Staff 

, . ■ 1 1*. ,? . ,, association’s aims, and Mr. already started tentative merger Union 

T - - ' " a IS2 tonkins specifically .mentioned talks with NUBE. Insurance, however, is a condi- 

a workers £72 toat it was seeking new Mr. John Bealey. the Lloyds tional area for ASTMS which has 

fl P r!£wt,f n< nJ?nriA f8 i geat ® r Partners. . . staff association general secre- negotiating arrangements in a 

- - \ It The moy«? epuld_ prove. signifi- tary said yesterday that he still number of major companies In- 

metudes the s etting up of -a joint cant in that the confederation wanted a single staff body for eluding Prudential, Pearl and 
■ • - i ^goaatmg committee to handle has mqre- aan . 80,000 members the clearing hanks and he saw Norwich Union. 

annuaipay- taua- onhdialf of the ih the .deasing banks, against this in terms of a merger The TUC leadership is clearly 
■* enure workforce. . . .. NUBE’s 60.000. • - between NUBE and the staff worried that insurance, and the, 

-4 Historic . T : "Botii ASTMS. which is trying associations. ' section of banking where mem- 

‘ -i . . ■ ■ to boost its small foothold in* Lloyds, association will, how- bership is represented by non- 

. i’-i - °A P It.. ep ^*?. w r tte ! a . banking, and NUBE, which is ever, be discussing the letters TUC affiliated organisations will 

r ■ -1„Z °tni^ tl t»ir >liB I? ia t erS attempting to. expand into’ in- from Mr. Jenkins at its policy- become a recruitment batile- 

• ' : S S suranreT^ traditional ASTMS making meeting next week. ’ ground. 

■" »*.•'** -™*. ** . m area, are .now operating in The official confederation view, Mr. Murray, in telling both 

t '• »- “5:°P C . da y.'- „ r decision, defiance of the wishes of the marked particularly by the atti- ASTMS and NUBE to keep within 

- ■».*.' n * i, for. Qgmnton tuc leadership.' . tude of the National Westminster their traditional recruitment 

fcrf e, Jf rtU tell the whole, worid Mr.- Lem’ - Murray, the TUC staff association is that if the areas, has been trying to nip the 
? -.I... 5 . Aynesiae-.m oaat in the general secretary,: told the associations have to start merger problem in the bud. 

' :«■«** business of building ships. . . . 

• “This agreement has been a _ . 




ftVv.- 


long time in coming, bta it has 
■ L* all been worthwhile. AIL wei 
« want to do now is get back' to j 
^ the position , of .being a world 
' ii-v- leader when it comes to building I 
■ ships.^ - ' 

• * i t .„ Although . the agreement, still 
has to be ratified by the 'Goverh- 
• -i-j ment’s ArhhratlOxf Committee on. 
-.L-? Friday, ', this ' shoitid • be a 
formality . after yesterday's 
i decision- 

The boilermakers' approval 
' * ■ was vital because the; were the 
* • »• group of . workers mainly 
.. t - involved’ in : the union -power 
struggle on Tyneside. 


Civil Service union 
thr^tens action 
over 22-27% claim 

■ BY PHILIP BASSETT, LABOUR STAFF 


More than 
500,000 
seek big 
pay rises 


LEADERS OF 105,000 civil ser- Mr. Campbell. Christie, the J m. - 

. ivsbts have threateaed to con- society’s deputy general secre- 

fl •_ j j * -a ' v sider industrial. Actien over a tary, said after- fbe. meeting with By Pauline Clark, Labour Staff 

LirOrn C n ' • 22-27- per cent p^^claiia. after Mr. Booth that the derision con- 

v- ’ -v' tk .-GoverBdient^- yesterday tradicted the Government’s TWO groups together repre- 
■d .. 7 refused to -allow it4*r-go to arbi-. policy of a return to collective seating more than 500,000 

TUlTIPr^ ' . _ ' . • ■ trati&n.'- bargaining "and no statutory workers in the chemicals sector 

l m il VA ... .. . ATKprr Bdorti. Emnlov- Incomes P° Ucy - _ . and in local government said 

- ' i'r meat Secretary to^rtprSLta- „ .Only a fortnight ago the Prime yesterday that they were seek- 

SMJFrPfV •' 1 SS M iister had urged teachers to ing substantial pay rises and a 

. ■?< that r W"on ajtoitratidn rather than shorter working week in negotia- 

... - :• .action. : but- ^ the tious starting under phase three 

- message : to civil 0 f Government's pay policy 1 . 


[emfs message" to cml 0 f the Government's pay policy. 
Wali the opposite. The National and Local 

was '.no alternative, but Government' Officers' Association 


action if the union has been preparing for a possible 
eve a just settlement, confrontation with the Govern- 


-‘Therrtwas no alternative, but Government < 

_ 5cota«p->ormpMideBk. •. - was to achieve a just settlement, confrontation 

t ili '' . '—££2 is Vthe .-The society’s' executive will ment over it 

'SCOTTISH jniners bara^agreed ^The^, wirii mtie^.Ao^prraw to discuss.the ceiling with 

Jo. give W.re<^ywntrodiiced dSlon. \and whether to for a special 

'pit incentive acbK^e g JoUger ^.^^^PP approach toe TUC ' or the The confett 

Advisory. Conciliation _ and only if 50 bn 


eve a just settlement, confrontation with the Govern- 
ety’s executive will ment over its 10 .per cent pay 
•rrow to discuss the ceiling with provisional plans 
^nd whether to for a special pay conference, 
toe TTJC' -or the The conference will take place 
Conciliation and only if 50 branches of the union 
Service about it have sent in a request for it 
artnient of Employ- by the deadline set for the end 


?y. Worldwii 


a- aeiegate meeang ui ^ old -agreement that a Civil Ser- ment said that both the present of this week. The union said 
Natjonal -Unmn 0 E MineworKers yift^union can request arbitra- and, previous Governments had yesterday that 44 bad responded, 
in Edinburgh yesterday, -neara A tion,: but the Government told reserved for a iong time the A considerable increase is said 
report fromunionleaaers w* the union yesterday that It was right to refuse arbitration “on by the union to be required to 

vhaasSmm Tkiitn tnfl IV o m ATIO I f .(rfl 1 - * * • - V . # - ■ " ■! I . . * . . 


■ meeting with the -National. Cgal not a--statutory right. 

Board to discuss grievances.. «d. y: . ... 

— agreed to wait .another sis' weeks . 

before reviewing tbe scheme." 

Mr.. Giraeme Steel, Scottish ; TT\'- ,fl r . 

■nr»v' TT’XT vice-presideht^ the. union, said ' I.1CJ . 

• If V p Y that there had been an qpport- . 

►J vAVW L* unity duribg'.-fhe meeti ng for 

delegates to raise problems, but ' . 

none had done. so. r : I 

— In some pits where payments - | •M 1 14 V 1 

■ft were said to be particularly "low. • 

Ift the amount of money received - 

U has been increasing as the men BY OUR LABOUR STAFF 

F I get used to operating the system. 


.grounds of policy." 


Rolls sit-in after 
talks break down 


restore its members to the posi- 
tion in which the; were! at this 
time last year. 

Nurses split 

When negotiations start on 
April 12, the -union says it will 
underline the Government's in- 
consistency in operating the 
10 per cent guidelines. . 

• Leaders of Britain's 420,000 
nurses and midwives ore split 
over a 10 per cent offer from 
the . Government. The Royal 


, Sri 


r - .. College of Nursing negotiators 

irf qpnMand. bbt MANUAL WORKERS at RoBs- the. full IP. per cent, which would say the deal is. acceptable but 
I loinefl more re- Boyce's aero engine plant In take some grades to £100 a week, the National Union of Public 

4 'ic- cfiil outside Coventry started a sit-in yester- ■ TTiey said-yesterday that if they Employees has asked its mem- 

' SSJwhiSe • day after talks' on a. pay claim accepted 9.7 per cent, they would bars to reject it partly because 

c-i hajrinpT-eased bv up dispute had broken down and be accepting the end of piece- of the way the money is being 

rt,! • 1 to rn?a SsS” workers Had been- work, which was still under nego- divided. . 

' sri UW- suspended without pay. \ tiation. • 

t«Cls Oi - Jjtjjjijl k V t ?4jiSi^ t JevelJor °two TVothousand staff were sent Sanctions, including an over- npTTW 1 

»m i'Wlttl „ 52^. . . hotne yesterday and Rolls-Royce, time ban and a work-to-rule, had | | I f ^ CPPkC 

u . M ■/’> years- _ — safd last night that a furtiier. been In force for several weeks X R-/ tJvvIViJ _ 

...... 1,400 manual workers at the before the sit : in. v 

"Mato- ^ nearty Ansty plant would be 'At another trouble spot in fYlfirP PQCh 

^ t *.f TNCyY llirCal laid off . this afternoon and to- Coventry, the Chrysler car UlUi C Vflail 
. • morrow morning. - : • engine plant there will be a ^ « f.. 

• “' •jfiir.i- 1 "‘ - ' ' '1 . RoQs-Royce has offered an union-management works confer- t/YI* hOQ Itn 

i--- ; - - eU^' TA K OVi) I ' immediate 9.7 per cent overall eoce to-day on a strike by 70 fork 1UX iiCOXUl 

■ - LU AWJ «■*: wage rise, ranging from £5J52 lift truck drivers which has 

. - • ^ for laboarm to £10.13 for top* caused the 4,ODO-5txong work By Our Labour Staff 

- - Portbury . JS^df? 7 jetogheW in^^e -^o^of^tiS^ers were^ ^ ^Mr 

, »»' isr^'T- 

- the 

. its first commercial vessri next f our months to win agree- Massey-Ferguson tractor plant in two-thh-ds of whatit was in the 


New threat 
to Royal 
Portbury 

By Our Labour Correspondent 


TUG seeks 
more cash 
for health . 

By Our Labour Staff 


piny, hopes will switch to "Strikers are due to. meet 
■.■ratf? BRISTOL’S £38m. Royal Part- me^uredday .working. . - to-morrow.. ^SenSm 

bury Dock witi.be^Mdyto accept !zhe compa ny has been trying •A' thousand-workers at the service ^ rea^tanns^was^^aly 
. its first commercial vesse l ne xt for f our months to win agree- Massey-Ferguson tractor plant m two-thfrds of whatitwas in the 
. . week— but cquid ffmain clwei ment t0 end - piece-work at the Coventry are still laid off because earif^ey e pties aid” (ash timits 

. - - ::^r’ Sixty tngnwn Ufted^cJMban pi^t biit without success. If tiie.of a shortage of ordere. but the had y led to underspending of 
on working the new. do ck yeste£ 0 B per cent, was not needed for rest of the 4,000 workers were f200m. in tittle more 


day and accepted their | 
■ ; & ^ employer's offer of a 10 per. cent. 


the change, the 10 per cent back yesterday after an extended ^ a year pamUy practitioner 
would be paid out in full- Easter break resulting from the sepj-jees were under increasing 


■ *- p £* 




.i ductivity deaL 

. But they see this as an interim 

settlement and want • further 
improvements in- pay . which 
.. \f2» : their employers say they cannot 
ri'f |;1 • give. This is iikely io provoke 

further industrial trouble ana 
n m* could ieid to higmen re-unpostog 
• i'V t heir boycott on. the dock. _ 

“../I ji'-t ‘ The dock has been- idle since 
it was opened by the Queen on 
.... August 8 last year. 


TaOUks to end 


.- M ^,-woma D€ paiu mu in nui. x,jwier oreads nauiuag uum «« ser^ces were under increasing 

pay rise with a 7 per. cent . pro-.|.. B u t the manual workers want cuts: strain. - * 

' , ' v — 1 — — - — — ^ — 1 The General Council wants an 

■ extra £150m. spent on the health 

• m V" w a" i " •> and personal social services 

Bntish Airways seeks ' r&KSS 

■ growth rate for expenditure on 

1 the Health Service of L8 per cent 

cabin crew peace plan ssm *■ nM eMu * h to 

- It points to nearly or wholly 

BY OUR ^LABOUR STAFF . " completed hospitals which cannot 

_ be opened because of cash 

UNIONS AND management in uement for more than a year on S^^entiaf ?e°op1e 

British Airways are expected tn -plans for a common cabin crew t receive the heal to care to 
meet to-day to. 'seek a - pomanent force with etani. rules since S«£tb£ «e MtStedT 
solutfon to the .cabin crew dis- the merger between BOAC and ^ 

pute which crippled Europe^ BEA. f 

and domestic air services for 34' , in the present dispute, short- TvnP?lflP iVlpfrn 
hours yesterday. ' haul crew have been arguing for -*■ J ui/Oiuv irivii u 


British Airways seeks 
cabin crew peace plan 


BY OUR -LABOUR STAFF 


, . «| hours yesterday. haul crew have been arguing for a. j aa*/oaa*v. irivuu 

Strike tail • " The one-day. strike by about the same; promotion prospects » fhrPQfpnpH 

- ... 2300 stewards and stewardesses their 4300 colleagues who work IliXcdlctlctl . 

TALKS TO : enff a strikfi_BF based it Heathrow and employed on long-haul fliabts. , A PAY dispute threatening tbe 

engineers in Sloke-on-i^ni^ on s jjort-haul flights was due to ^ short-haul, crews— who future of the £160m. Tyneside 

pottery industry, broke, oowa end at b ajn. this-momiag ottoc eaim the-same as those on long- Metro underground rail network 

yesterday. v causing tbe. cancellation of about jj 5u j flights with salaries rang- was taken up yesterday by Mr. 

More' than .200 mamtenanw ggg flights, affecting 25,000 pas- j n g from £2,900 to £5,800 a year William Rodgers, Transport 


Rodgers will attend talks 


r . 1 - XE ■ In TtlAf fhR- AITflOngXl UUIUJu dcr VILC UU vw *** vu«nu 

,-V claim. Union officials met Wr routes is expected to-day, British promotions offered on the long- at Newcastle-upon-Tyne this 
l p management Vhose otter w» Airwavs some flights could- distance services. month on a £30-a-week pay claim 

. .hm' -** /iwtve OWlllS AllM “J. _ ■ — a • M J _V 1 1_ -ri rtAA liaV m. A mm — 


rejected -as “oatrageous an^ 
totally -unacceptable.^ . 


AMU W - U1U , *74diF«< 

Manufacturers Federation P 18 ^ “gj 


be affected' early'on by the need - Long-hanl stewards and by '2,000 busmen who are needed 
to reposition - some , staff and stewardesses -are ^id to-be argu- to operate temporary bus services 
alirnte - ' In^ the issue because, although as overground rail links are 


Now^tof^Bri^ Ceramic! to xenositipn - some , staff and stewardesses are said tob* argu- 1 to ope rate te mporary busservices | 






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Union have had talks 










10 


~wJ*. ' ■- 



AND POLITICS 


Leyland Quiet start for first day 

of Commons broadcasts 



BY PHILIP RAWSTORNE 


FURTHER slate backing worth 
£450m.— fur British Leyland this 
year, has been approved by the 
Government. Mr. Eric Varley. 
Industry Secretary, announced 
yesterday. 

in a Commons written reply. 
Mr. Varley said that the Govern- 
ment was supporting the 
National Enterprise Board's 
recommendation to provide the 
new equity to aid British Ley- 
lund management's plans for the 
future. 

Mr. Varley said: “The Govern- 
ment accepts in principle that 
£S50m. of public funds will be 
needed over the period 1978-81, 
and envisages that, if British 
Leyland progresses on the lines 
set out in the plan, the necessary 
funds will be provided. 

“ In future the financial pro- 
vision will be looked at annually, 
starting next November, in the 
light of progress made and nE 
future prospects. 

“ If events show a serious risk 
that the plan’s objectives cannot 
be achieved, then the Govern- 
ment with the company and the 
NEB wili have to consider the 
options; and the Government 
would have to accept the finan- 
cial consequences of any change 
of plan tbnt it might then agree 
with the NEB.” 


THE GOVERNMENT marked 
the opening yesterday of live 
radio broadcasts from the 
Commons by making its most 
Important policy statement in 
writing. 

- Mr. Eric Varley, Industry 
Secretary — lacking a micro- 
phone if not a sense of history 
— announced the Government's 
£850m. support for British 
Leyland in a written reply to 
a parliamentary question. 

Radio listeners were denied 
even the sound of the protests 
that followed. 

The Commons timetable, in 
fact perversely ensured that 
there was tittle entertainment 
as well as news content in yes- 
terday’s broadcast 

Bat Welsh questions, the 
first on the list, opened to a 
much bigger audience of MPs 
t han usual. Remarkably spruce, 
some of them appeared, as if 
hoping that a television camera 


larked in the roof Instead of 
the two unobtrusive “effects'* 
microphones. 

“Order, . order,” Mr. George 
Thomas, the Speaker, called 
apprenbensively over the air. 

The MPs, however, moved 
with conscious and cautions 
decorum into what Mr. Michael 
Foot had described as “a very . 
important development in tbe 
history of Parliament and 
democracy” 

Politicians are more aware of 
distortions than most— and the 
microphones magnify the 
normal undercurrent of com- ' 
ment, approval and dissent Into 
a football fans* fracas. 

It says much for tbe modu- 
lated restraint of the Commons 
yesterday that in spite of the 
echo chamber effect of the 
broadcast, the session sounded 
reasonably conducted. 

However few listeners out- 
side Wales, struggling to keep 


abreast of question and answer, 
could have felt much sympathy 
for the demands they heard for 
more TV and radio broadcasts 
in Welsh — especially after Mr. 
Dafydd Ellis Thomas had 
quoted a few unintelligible 
Celtic words at Mr. John 
Morris. 

Inside the Chamber, no one 
referred directly to the Historic 
Event. 

The Speaker, noting the 
steadily' growing length - of 
questions and answers, said in 
mild deprecation that he .could 
not explain why this should be 
happening. Welsh eloquence 
perhaps? 

Unemployment in Wales,' 
however, provoked the first 
party political chorus of a 
short but well-rehearsed chant 
from the Tories of “Back to 
work with Labour.” 

Then Mr. Charles Morris, 

' Civil Sendee Minister, trans- 



blacklist 
to be 


mitted the first family commer- 
cial, broadcasting the fact that 
bis brother Alfred was “Mini- 
ster for the Disabled, yon 
know.” 

Mr. Morris, sounding In- 
creasingly breathless, also put 
across a stronger defence of 
the .Civil Service than is nor- 
mally heard froth Westminster. 


published 


By Our Parliamentary Staff 
THE NAMES 


BY JOHN HUNT, PARLIAMENTARY CORRESPONDENT 


-Xius VAMPS „F THE PRIME MINISTER has now that the only- way out ** 

blacklisted^fnr ^ ecaived the report of the Armed commit an offencepunishabl, 

St Services Pay Review Body and Court Martial. 
be DubS^ S m ^ Government intends to re- in' fee letter: “My wtf**' 


. managed 

intervene twiee before giving 
tbe last word to Hr. Foot. 

The Lord President, though 
oue of the most enthusiastic 
supporters of Commons broad- 
casts, used it to say tittle. It 
was dear enough, however, 
that he would view the advent 
of television cameras with con- 
siderably less hostility than 
further intrusion into Govern- 
ment of investigating select 
committees. 


Asked by Mr. Kenneth. Clarke 
(CL, Rushcliffe) about the 


Tories Would accetetaJfe 


Opening the defence debate on : grammar or the T< 
arangements- made for public ***» he fa ^ aircraff-dueto rtar . 

tion of the names of comSS Wa5tOD 

On the hlaeklicf Mr. Uunr cml l, 


Hospital Left seeks more Welsh 



‘slurs’ party power 

attacked 


BY RUPERT CORNWELL. LOBBY STAFF 


Returns 


Mr. Varley added that to assist 
the monitoring of Loylnnd's per- 
formance. the Government bad 
also accepted that a financial 
duty should be imposed on. the 
NEB over British Leyland of 
a 10 per cent return on capital 
by 1981. 

“The duty for later years will 
be considered further when BL's 
1979 Corporate Plan is put for- 
ward towards the end of this 
year." said Mr. Varley. 

© Ail British companies, includ- 
ing British Leyland, will be 
expected to observe the EEC 
code of practice on trade with 
South Africa. Mr. Leslie Huck- 
field. Industry Under-Secretary, 
said in a Commons written reply 
yesterday. 

Implementation of the code 
was still being discussed with 
the Confederation of British 
Industry and the Trades Union 
Congress, he said. 

But when the talks had been 


completed, Mr. Edmund Dell, 
ade Set 


Trade Secretary, would “com- 
mend the Code to all British 
companies . . . with interests in 
South Africa." 

Mr. Huckfield added: “We shall 
expect British Leyland to observe 
it along with other British com- 
panies concerned." 


NO EVIDENCE of staff miscon- 
duct at St David’s Hospital. Car- 
marthen. had been unearthed in 
newspaper reports, Mr. Barry 
Jones, Welsh Under Secretary 
told MPs yesterday. 

He said in reply to Mr. 
Nicholas Edwards {C Pembroke) 
that Dyffed Area Health 
Authority was investigating. 
“They nave so far found no 
substance in these allegations.” 

Mr. Jones said that a statement 
would be made when the 
inquiries bad been completed. 

“ But I should like to take this 
opportunity to express my sym- 
pathy with staff of the hospital 
who understandably feel, as 1 do. 
that their collective reputation 
has been unfairly impugned by 
these anonymous Inputations.” 

Mr. Edwards said that in spite 
of the allegations published in a 
daily newspaper, the hospital had 
a high reputation. He and others 
had received representations 
from patients. 

. He called for a full report 
when the inquiries are complete. 

Mr. Gwynfor Evans, Plaid 
Cymru leader said: “This kind 
of sensational and irresponsible 
journalism should be heavily 
condemned.” 

Mr. Jones said that the infor- 
mation given to the police did 
not in their view, justify further 
formal inquiries. 


LABOUR Left-wingers are step- 
ping up their efforts to clip the 
wings of Commons select com- 
mittees, which are increasingly 
emerging as effective and 
bipartisan critics of government 
and Whitehall, often to the great 
embarrassment of Ministers. 

Next Monday, the party’s in- 
fluential home affairs sub-com- 
mittee will be considering a 
report from a special working 
group on parliamentary reform. 


Background 


Its key suggestion is for 
revamped committees to shadow 
each Whitehall department, but 
organised along strictly party 
lines. 


The document, . whose 
drafters include Mr. Anthony 
Wedgwood Benn. the Energy 
Secretary, also calls for measures 
to force civil servants to divulge 
official information, and for MPs 
to be given extensive background 
detail whenever a Bill is 
published. 

This would enable them 
properly to grasp the policy 
issues involved. 

The central idea, though, is 
for committees to have staff and 
researchers appointed on purely 
party political lines — to head off 
what the Left sees as a dangerous 
tendency for MPs serving on 
them to subordinate party views 


to the needs to achieve an agreed 
report. 

Two recent examples illustrate 
the trend: the Nationalised 
Industries Committee on the 
British Steel Corporation, when 
even Left-wingers involved 
backed a call for massive cut- 
backs in plant and manning; and 
tbe Select Committee ' on 
Immigration, whose Labour 
members were attacked- by some 
colleagues for 1 having more or 
less agreed to the Conservative 
line on rfee. 

Assuming the Home Policy 
Committee {chaired by Mr. 
Benn) gives its approval, the 
chances are good for endorse- 
ment by tbe full National Execu- 
tive Committee, and then * by 
Labour's annual conference later 
In the year. 

But there seems tittle hope of 
a Labour Government attempting 
to implement such proposals 
because o£ opposition from a 
sizeable number of Centre and 
Risht-wing MPs. 

The differences shone through 
Commons exchangee yesterday 
as two prominent Left-wing 
MPs, Mr. Denis Skinner and Mr. 
Eric Heffer 'insisted that the 
party battle . should be carried 
into the committees too. 

Mr. Michael Foot, Labour 
deputy leader and Leader of the 
House, fuiy agreed. But other 
backbenchers attacked any 
attempt to curb the committee's 
powers. 



tionary action, whose names- ha vn aama » e ° n 

not previously been published by the Luftwaffe had achieved . . The deflcJehafes-. . _ 

the Government The names' of . 1851 wax ' . ' • and reserves wofcld, be 

those firms who consent will be ■ The Minister recognised -that Urgent 'consideration -vroeM 
published in Trade - and redundancy policies, the reduc- given to strength eiun^ Briil 
Industry.” tfon in The size of the RAF mad deterrent “capability and 

. Mr. John Moore (C.. Croydon constraints of pay policy possibilities of. a cruise d*} 
Central) ' asked about ' V-J ' J “ 

dure for removing 

longer in breach ox roe -pay too report or roe review owj, f-., 

policy from the Government's had been received by Mr. ^ comparability :fa 
blacklist . -Callaghan last Friday, but had jg/ctarcbm that - 

Mr. Barnett told him that a “ ot Y et been considered by. the -equi pmeilt in. tbe RAF wjb- 
comp any which brought its wage Government - - than the inen using it Kid 

settlements within the Govern- w « * were responsible- forTnrtfa 

menfs pay limits was informed Benefits ing the morale of -the fig 

PVnQnrlnil thatdfccretionary aCtUm * ouW Nevertheless, Mr. Wenbeloved ■gfg'SSS 

expanaca ^ for gswtf&a 

. , L „ _ * the placing of public contracts !«,«.- forward to receiving v 

WHATEVER the eventual fate and the consideration of Govern- Sr Mi Ihareof the benSBI pernor aircraftsmen, wez 

of the Wales Devolution BUI, the ment assistance are informed tw tSk vriti^roduce ” «M“8^eM &an £80 a -wee ; . 

devolution of powers to tbe accordingly.” v,™ keeps wife and . 

Secretary of Statp for Wales con- _ , . ■ Die armed services ceuld now {[ ^ r eyr . at a time 4 

secretary °f btate or waies con- The position of compames'-cbm- look forward to a period of ^anwwrer Servires ComS^ * 
tmues ‘ mitted to legally enforceable stability. The Government would ' 

At the week-end, three new agreements on wages which ex- take every step to ensure that / 

functions — agriculture, higher ceeded the nay guidelines ’’was Their vital contribution -would be 

and further education, and the raised by . Mr. Richard. Walnr adequately recognised,- both ' in phrarfi t i 

administration of ancient mono- wright CL.. Colne Valley). He remuneration and supply, of 1 u vc vJ mic . V 

meats — were handed over to his asked if the Government im equipment. J ' • “ There - ire' iseibk. 

department, the Welsh Office. tended to use its discretionary-' From the Opposition Front to-day who are below tb& 

As Mr. John Morris, the present powers , to withhold or cancel Bench, a formidable indictment tine." he said. .. .- - ; 

Secretary of Slate, remarked, contracts or aid against : inch -of the Government’s handling of The supply of adequate, 
they bring the Welsh Offices’ Anns. . the RAF was mounted by Mr. crutfts had dried up. The h ... 

responsibilities much closer to Mr. Barnett replied: “The exfs- ChurchJH-.. He said that morale rate .of trainees on fast M , 1 
those of the Scottish Office. ‘ tence of legally enforceable-, in the Air Force was bo bad and running at an hoprered-- 
ThP mnst imnnrbmf rbantxo agreements is. in itself. -no bar that so many men were leaving, IeveL The Government' 

£LSP£TjSS ^-jsasw-'^ssjs ff-’usrsi 

ttnUfte Klf “ Whether a breach .of pay 

Agriculture, Fisheries and Food policy wili lead to a decision be-. stay on a elgDt In addition, untold di... 


- 


—■ 1 






ucas 



The Group's unaudited results for the half year to 31 January 1978 are: 


Half-year 

Half-year 

Year 


to 

to 

to 


31.1.78 

31.1.77 

31.7.77 


£ million 

£ million 

£ million 

Safas to outside customers 

462.39 

418.23 

886.07 

Surplus on Trading ’ 

Share of profits less losses of 

30.34 

3530 

78.23 

associated companies 

1.09 

137 

338 


31.43 

37.47 

. 8731 

Interest payable less received 

3.82 

2.80 

4.33 

Profit before Taxation 

27.61 

34.67 

77.28 

Taxation 

1438 

18.01 

39.62 

Profit after taxation 

13.23 

1636 

37.66 

Minority interests 

.30 

37 

34 

Profit attributable to Shareholders 

1233 

16.09 

36.72 

Earnings per Ordinary Share 

13.78p 

17.14p 

39.14p 

Depreciation charged in arriving at 
the surplus on trading 

1138 

837 

1832 


Nates 
1 


AH research and development expenditure incurred during t he period has been charged in 
arriving at the above profits. 

UK Corporation tax has been charged at 52 % in both years . 

The cost of the interim dividend will be £2. 19 million (test year £139 million). 


Results ' 

Turnover for the six months was £462m — an Increase of £44m.The Lucas share of 
associated companies' turnover was a further £45m_ Profits before tax were £27 .6m, being 
affected by the very damaging toolroom strike which, as already reported, cost film. 
Worldwide demand for our products has remained strong and turnover would have been 
higher but for the restriction on supplies from the UK factories; despite this factor and some 
areas of market weak ness, good progress has been made by our companies, both at home 
and overseas. Our vehicle equipment businesses have obtained significant new contracts to. 
supply European vehicle and engine makers and our industrial equipment business 
continued fts advance. Our plans to increase substantially our share of the important USA 
market are making good progress. 

in my annual review last year I indicated the need to restructure our aircraft equipment 
business to bring the facilities into line with the present lower demand and the intensely 
competitive situation. Proposals to this end, including the redeployment ol; people, have 
bean announced. 


Dividends 

The Interim Dividend for the year ending 31 July 1978 will be paid on 15 May 1978atthe 
rate of 2.334c per Ordinary share. This compares with an interim Dividend of 2.1 22p per 
Ordinary share paid last yaar and- represents an increase of 10%. The Interim Dividend on 
the Redeemable Preference shares will ba 3501 p per share {last year 3.1 83p). 

Prospects 

We expect the present firm demand for our products to be sustained and no effort will be 
spared to recover further the ground lost in the first half of the -year. . 

BERNARD SCOTT 
Chairman 


Lucas Industries 



Complaints 

about 


on for a 

to tteWdS fo *£ Chnrciitt quoted a letter Jnd 

2®;. Stances o? each ^ase •P ,ec,mHn " sent to him by a flying officer equipment programme* it-- 
policy division for Waies will be stances of eacn case. ^gp^^e to leave. Os face of the Soviet nri.._ 

set U P- Mr- Peter Shore, the Environ- his request was refused, he fett threat' '.‘5? 

Mr. Morris will now have his ment Secretary, made dear that. 
own team of advisors on Welsh the new coiinter-inflatioh condl-. ' 
agriculture's particular needs, in tions in Government contracts 
relation to both UJC policy and are non-negotiable. He was- 
Common Market Ministerial ashed by Mr. Clarke whether the 
negotiations in Brussels. Environment Department was 

prepared to enter into negotia-.' 
tI 2! r Hn 0 f tions about the precise war$n£ ' 

^Sher and further education ^ counter-inflation terms' 
functions is to give the Secretary an ^ conditions with a firm which 
of State -responsibility for prac was the !owest bidder fbr * ^ub- 
tically the whole range of educa- bc contract 
tion in the principality, the main Mr Shore rep iied: “No. All 
exception being university affairs, procurement Departments are 
To-day's Welsh Office is still required to incorporate in their 
small by Whitehall standards, contracts the new counter- in fla- - : . ___ . , ... •- .. e 

with a total staff of only some tion condition and. in accordance CIVIL SERVICE sta ffin g -was* size of the Civil- Semce. 
2.800. But besides its new funo- with instructions issued by the reduced by 8^00 in the course of determined.. by the tasks ... 
tions, the Department also has Treasury, no negotiations cm the 1977, Mr. Charles Morris, Minis- Parliament required it tot . 


‘Clobbered’ Civil 
Service 



Ur-;- 

v,; 


• • 


BY IVOR OWEN, PARLIAMENTARY STAFF 


to look after the health services, t erms can be allowed. 1 


government. 


print unions 


By Our Parliamentary Staff 


housing and local 
and transport 
It also has responsibility for 
economic planning in Wales, 
financial assistance under Section 
7 of the 1972 Industry Act and 
the Manpower Services ■ Commis- 
sion. 


ter of State for the Civil Service, take. . 

told the Commons yesterday. - He agreed with Mt - 
He said that ag a result of Wrigglesworth (Lab.i Thor 
this reduction, there were that the reduction disprove - 
738,000 civil servants on January myth that the dvD Servlc 
1, 1078, .the latest date for which constantly growing in 4na 
figures were available. Mr. . Dennis SMnner. 

Mr. Morris, who promised that Bolsover) warned that star' 

__ . . ... the Government would continue in the Health and Social Se 

THE Victoria and Albert Museum ^ efforts to contain the size and Department could mean th 


Canaletto 
cash offer 


THE GOVERNMENT has seen 
little evidence that the Society 
of Lithographic Artists, Designers 
and Engravers has changed the 
practices involved in its recruit- 
ing campaign. Mr.. Harold 
Walker, Employment Minister of 
1-State, told the Comihons last 
night. f 

He was asked by Blr. James 
Prior, Conservative employment 
spokesman, if the Government 
were satisfied that SljADE had 
reformed its practices] following 
a Commons debate last June. 

During this debatg. SLADE 
was accused of using ?he threat 
of blacking non-SLADE ' work 
as nart of a cornpaigd to set up 
a SLADE art union, j 
In a written reply, fir. Walker 
said be had not had consultations 
with SLADE since the Commons 
debate last year. l 
“The union is aWare of - my 
views, which were made plain on 
that occasion. I kery much 
regret that, as yet,* I have seen 
little evidence that tne situation 
has significantly j chanced, 
although I understand that 
further .talks ate manned 
between the TUG’s Printing 
Industries Committee and reore- 
sentatives of the! advertising 

industry" j 

• MPs complained yesterday 
about the Industrial dispute 
which has stopped, printing of 
their Parliamentary papers, in 
eluding Hansard. 

Mr. Michael Foot,. Leader of 
the House, assured, them that 
talks were going on with the 
National Graphical Association 
about manning levels. 

Her Majesty's Stationery Office 
management bad asked the Advi- 
sory, Conciliation and Arbitra- 
tion Service to look into the 
long-term problems. 

Mr. Dennis Skinner fLab.. Bol- 
sover) thought that MPs were 
Parliamentary cry-babies." 


Hand in hand with the deve- bas offered £137,500 to help save coa j ^j e civil .Service, people on soppiemeDtary b 
lopment of the Welsh Office has tbe two Canaietto painting a of de pj ored the fact that “clobber- were not being visited. *. • 

gone an enormous growth in the Warwick Castle f* orn ing”- the Civil Service had. Mr. William MoQoy -.Xu ? \ 

power of political patronage at Gordon Oakes the Minister -become almost a national sport Ealing N.) led a fierce J ‘■‘u* 
the disposal of the Secretary of Education ana Science, said while .if was right that on ‘the Civil Service' ft. 

State. yesterday.- criticism of the Civil Service failure to play a > bigger tt 

Mr. Morris noted two years The money comes from the s hould be expressed, he said, it providing more jobs for : 
ago that he personally made 628 Museum’s fund for assisting local ought to be informed criticism, people under the Goverm 
appointments to 73 nominated museums to purchase objects for The Minister was unable to work experience scheme. 
bodies operating in Wales. Since their collections. _ meet a .request from Mr. John He called it a **conteitt 

then, the number has increased Birmingham City Art Gallery pardoe (Lib-, North Cornwall) contribution” when Mr.-.-l 
even further. and the Ashmolean Museum have f or figures showing the size of said that . 36 young' peopli - 

Indeed, this governing set-up both shown an interest in buying th e civil Service in 1970 or 1974 been placed -in. -Goyen 
in Wales is an important facet the paintings and_ they have SJ that the House could more departments under the- sc 
of the Welsh devolutionists' until May 11 to raise the cash, adequately .assess the significance Mr. Morris said that he a 
case. ' They argue' that Wales Mr. Oakes said in a Commons of the 8200 redaction. Mr. MoIIoy's sense of ou 

already 'has a devolved bureau- written reply to Mr. Stephen The Civil Service' Department but it was necessary to S' 

cracy. It is, therefore, essential Ross (L H Isle of Wight). said later that the size of .the the support of the trade u 

that Wales now also has a Mr. Oakes said: “This is by Civil Service increased from and staff associations cana 
devolved executive assembly— to far tb« largest single grant ever .511.848 in April, 1974, to 748,000 ' Difficulties had arisen tn 

make the bureaucracy demo- offered from the Victoria and in April, 1977. opposition from one of the 

cratically accountable. Albert Museum fond. Mr. Morris stressed that the Civil Service unions. 


War pension 
pledge 


THE LESSONS of the underpay- 
ment Of war pensions to 25 

1 afAMS 


retired officers is being “force- 
fully" brought to the attention of 
pensions administration. 

In a Commons written reply, 
Mr. David Ennals, Social Ser- 
vices Secretary, promised: 'T am 
determined that war pensions 
shall be administered to the 
highest standards of integrity.'' 
.Accepting “unreservedly” the 
Ombudsman's severe criticism of 
the underpayments, Mr. Ennals 
said: “I do not condone or seek 
to excuse the actions of those 
who took tiie decisions.” 



NEDERLANDSCHE MIDDENSTANDSBANK N.V, 

Registered Office Amsterdam 


announces the Issue of 

Dfls 100,000,000 


7%% Debentures 1978 
due 1984/1988 


in bearer denominations of Dfls 1,000 each. 
The issue price will be fixed on April 5, 1978. 


Interest payable annually on, May 1 without . 
deduction of withholding tax. 


Redemption at par in 5 almost equal annual 
instalments from May 1, 1984 until 1988. 


Application has been made for quotation of the 
Debentures on the Amsterdam Stock Exchange. 


Subscription will be open from April 7, 1978 at 
09.00 his. and will be closed at 15.00. hrs. on . 
that date. 


Date of payment: May 2, 1978. 


0 



NEDERLANDSCHE MIDDENSTANDSBANK N.V.- v 
Amsterdam, March 31, 1978, 


in l i 
L 



v <88? 


3 - 3 


< 5 - 
. i 
;=fi 


r 








Jifn 

'V* ';■•■ , : w.; : . • 




. spiB^ 
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* 


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i-e^i 



f,y “’' ''***•-. • * > ,,'---7 

4^:'' ; ' < *•- '>**£&■ •' ■• <‘M 

<?;.:■ V- . • • '* ^ . 4 *>* -*v •*$*' 

&<:.• •■. 

'Al* <*- 

: V* 7* * * 


*£V-*v v\* 

. , v jf*£i , 


V : " ‘ 

*. »^T ^ ^ 

: ; ■ :. 4 




4’ 

., 

fr. "/ $4 

^ - - - .* .. r-,3 


• PROCESSING 

Cleans and 
gives bright 
finish 

TWO SEPARATE operations, 
cleaning and bright dipping, can 
be carried our by the latest metal 
finishing machine to be produced 
by Hockley Chemical Company. 

Designed for processing brass 
components for the' plumbing 
industry, the 12-station machine 
bas been installed at the Tipton, 
Staffs., works of Cones San bra. 
The first four stations can be 
used solely for cleaning and 
there is , a take-off conveyor 
installed tranvereely within the 
machine as a discharge station 
for cleaned parts. 

When all 12 stations are -re- 
quired for the full bright dip- 
ping treatment, the interstage 
conveyor is by-passed by a chute 

which enables processed parts to 
be transferred . automatically 
from the fourth to fifth stations. 

The machine is fed by two 
largo vibratory hoppers, which 
Hockley claims is an unusual 
feature for equipment of this 
type. It is called the Barraflo and 
more complete-- details can be 
obtained from the company at 
Hockley Hill, Birmingham BIS 
5AB (021-554 6201). 

Lays down 
paste line 

OF USE to those concerned with 
thick film circuits, printed board 
rectification and some aspects of 
instrument engineering - is an 
accurate paste applicator put on 


the market by Interfax, of Sutton 
Coldfield. 

It can be used to ensure 
fatigue-free • accurate and 
economical applications of gold 
or silver epoxies as conductive 
thick films, or liquid solder and 
brazing pastes. Separate air 
pulse control units are supplied 
for pastes/epoxies and' for 
thinner viscosity fluids. The dis- 
penser. using disposable poly- 
propylene paste containers and 
needles, allows accurate repeti- 
tive deposits down to 0.005 inch' 
dots. 

More from the company at 
17a. Kings Road, Sutton Cold- 
field, West Midlands B73 5AB 
(02M54 5965). 


Efficient 
removal 
of rust 

WHEEL-OPERATED automatic 
shotblast machines of a new 
British design are offered for the 
high-speed removal of surface 
rust and scale to give a key for 
subsequent painting. 

Stress-relief is created by the 
peening effect of the deluge of- 
sfaot on -to the workpiece surface, 
at a 'rate that can exceed 500 kg 
per minute of exposure. 

Observation of many successive 
machines by company engineers 
has produced a new concept of 
operational efficiency which bas 
enabled them to raise the per- 
formance of the new equipment. 
to give a claimed 3D per cent, im- 
provement over other existing 
designs. Proportionally longer 
life' is given to wearing com- 
ponents and a sharp reduction in 
down-time for maintenance is one 
result. 

Two main categories are being 


produced: batch production 
machines for cleaning small parts 
by tumbling on a moving belt, or 
by introduction into the blast 
area on a rotating taETe; and con- 
tinuous flow-through machines. 

Continuous production 

machines ' feed the workpiece 
through on conveyors. Structural 
steel sections feed through the 
blast cabinet on powered rollers. 
The standard machine will accept 
beams up to 1 metre in height or 
fiat plates 1J _ metres wide. 
Within these limits any shape or 
section can be treated, up to any 
length. Small sections can be 
passed through in multiples. The 
four wheels employed in this 
machine direct the shot radially 
inwards, to cover every part of 
the most complex sections, the 
small amount of overshoot im- 
pinging on a battery of high- 
chrome steel wear tiles lining the 
cabinet. 

Power Blast Collingwood 
Lodge, Camberley, Surrey. 


• POWER 


Doal-role engine 


ON VIEW at Hevac in Binning 
ham to-day is the prototype of -a 
sew gas engine that is certain to 
arouse interest among installers 
of environmental plant in Sew 
premises. 

It is a dual-role unit Primary 
function is for air conditioning, 
through a chiller unit providing 
53 tonnes /hour of cooling and 
with waste heat recovery at a rate 
Of 100,000 BTU/hour. „ . 

;In its secondary role, the 
engine will provide stand-by 
power with a rating of 40 kVA. 

• PRINTING 


Developed oh a special com- 
mission by Dale Electrics of 
Filey, Yorkshire, the, engine is 
to be- used for test purposes at 
the British Gas Solihull Midlands 
Research Station. 

Also on view is a new design 
of modular boiler which comes 
in 41 packages ** of 50 kW- each 
(170,600 BTU/hour) and which 
can go up to 300 kW— six- 
modules. 

The high efficiency of 85 per 
cenL. is claimed. - 

More from British Gas on 
01-723 7030. 


Litho plate from paper 


• SAFETY 

Hydraulic 

lift-up 

AT THE Walthamstow factory 
complex of Hammond and 
Champness is the first hydraulic 
test unit to be used in the lift 
industry employing accumulators 
to simulate lift performance. 

H and C designed and 
developed the system which uses 
four large nitrogen-filled 
accumulators that, when con- 
nected to a hydraulic piston, 
create a load on the ram which 
simulates the load of the lift in 
the shaft. 

More from H and C at 159-173, 
St John Street, London, EC1V 
4JQ. 


AIMED AT in-house print shops, 
quick printers and commercial 
bouses dealing in short runs is 
the ,3M . 1135 table top electro- 
static unit making same-size 

plates on a paper base. 

The platemaker measures 30 
by 21 by 12 inches, weighs 310 lb 
and can deal with original copy 
10 inches wide and up to 14$ 
inches long. 

The machine is essentially an 
electrostatic copier. A zinc oxide 
coated paper is charged by a 
high voltage unit; light is 
scanned through the original and. 
powder toner then adheres to 
black image areas. The sheet 
then passes through high pres- 
sure rollers giving pressure fus- 
ing of the image to make It 
permanent 

The process takes only ten 
seconds; it involves no -wet pro- 
cessing or mixing — only a 
single dry toner that needs 


relatively infrequent replenish- 
ment and does not deplete while 
the machine is idle. 

Main advantage claimed for 
the machine is that it produces 
plates at 9p to 12p each, but at 
a. quality normally associated 
with metal plates. Solid areas are 
dense and .consistent and the 
press life Is a nominal 500 to 
600 copies, exceptionally extend- 
ing to 1,000. 

The 1135 also has a wide 
exposure latitude, ensuring good 
quality reproduction from a 
wide range of black and white 
or colour original?. 

Controls consist of a simple 
exposure dial, quantity selector 
and start button. The platen 
allows some positioning of the 
original. 

More about the machine, which 
can if required make plates from 
half tones with an 85 screen, 
from P.O/ Box 1, Bracknell, 
Berkshire (0344 '26726). 


LAING 

for tomorrow's 
BUILDING, CIVIL 
& INDUSTRIAL 
ENGINEERING 

• OFFICE 
EQUIPMENT 

Speeding up 
data flow 

AUTOMATIC data writing equip- 
ment which will simplify and 
speed up invoice, purchase order 
and shipping manifest prepara- 
tion, is to be presented by 
Ultronic Data Systems at. the 
International Word Processing 
Exhibition at London’s Wembley 
Conference Centre in June. 

All data prepared on the 
system will be directly enterabla 
for further analysis into the 
majority of major computers via' 
the machine's punched tape. 
Automatic print-out by single 
element typesphere is effected at 
speeds of over 15 characters a 
second. As well as Us tape punch 
the system ean be fitted with two 
tape readers to expedite infor- 
mation retrieval from the tape 
store.' 

From- .its recently opened 
factory at Brighton. Sussex. 
Supertyper (U.K.) is expecting 
to show a new British-built TV 
screen-type computer which can 
store a miniature library of data 
on either floppy, or hard discs 
with access from the keyboard. 


neriv line 

;T" in taj 


• ‘ j' l.;.,/; Among theexMbits put on display.by (j^ners^u^fepb ne and 

'.-’.Sir K,eetronics at Comnnudcatfons 78, Whkh the NEC 

' ’ 1 - * 1“ Birmingham tchday, is this solar^cdl pbwer&l microwave 

»'s y.titie repeater station which, GTE "asserts, can be at only 

"... ®**Mmaiter the cost of . existing repeaters. Sho"*^3si the low 

VJ.‘ r ' ?.£ capacity system (the 760 FI) w4iich has i lat panels 
.i : : providing abundant .- operational power even wilh ^nst a few 

• hours sunlight Standby, batteries .fed from theXeells ensure 

- r r operation4hrough as iuany as ten. days total darfcn&fc; Economy 

... V ad» the keynote of the i»MjJ*niy !, s np'tb i604l«e l^lCS which 
provides stkteof-tbe-art ronnnnhigitions teriuri$^vfrom a 
unit not much larger than an or^Sraxy desittop tel^vane set 
Mere' on' 01-890 1455,. \ . ;V •' ' -• V ; JSty % 

ClVil • DATA PROCESSINJ^ I ] *$1**^* 

TTtR -if 'J r . -i-V-:'.' 2- 11- •' ii-li ll ■ '■ 


1 Chil 
ended 


enueu LAUNCH^intoe'U^la^“™fc^ 

and yesterday in- London is a 
dual-processor- version 

T STAFF largest current machine, the' 

3033, which Should be, capable of. 
.... c meeting' the computing- d e mands 
'.“.r of the largest commercial- nsers 
'. : : .ft-since, vrithL all . -the! an^Iary: 

■ l - ■ : ’ * equipment- - it ^^xah - rim, - - the 

.. «, machine - represents something 
around. the £5m. mark. o£:com-. 
,- f^urii puting devices. ’j?. 

• ■ ; r 2.:. ^;' L 2 it offere users tVice the toutfl 

■■ "l -* - i: storage, but' up to -L8 times toe 
i: ' '' sitoff : 5 P« ed - « f ;■ Aa stofi 1 ® processor; 


.i 'V 

The tradeoff ^rthat .one pr<f 
cessor-udll .-bqfmaAe to support, 
n^orlm^ixfiporiant portioiwf of 
the total3a6d if the second; pro-, 
cessor' is$afcen out of service. for 
testihg^jferamtenance!, .’ or ; any 
otibeE^Masozu ; 

Ftri^sbipnients of the machine 
in^ftls- version will begin in the 
D.5. 4n the third quarter, next 
year. “ European - markets for 
equipment .with such- vast power 
are hard .to guess at They axe 
unlikely., to absorb more than, 
say* -20 of them pdr year. 


Card gives security 


.It iVi 



vioiloy L ANNOUNCED *• by ' Rockwell machines and traveller’s chequff 
- International in the U.S. : is . a dts^nsers. ensuring seciM-ity for 
* -iL “w - „ each transaefion. Even buildings 

-data encoding or cyphering ^ , 8ecured the CR ^oo 

i ;;:T- device . on. .a single circuit earn ^ a perimeter control system.. 

; 'V.o^wbnch can be incorporated itrLo--. iqig card-.can-wbrk in conjunc- 
‘ da-ta terminal units to provide a, .turn with the bus. Cdata.highwajlrj' 

- high level . of . secure comm uni- of , ' a; number of : processors 
•£ ^catkins -and -’so .pawertt theft orin eluding,, tbe.^ . Intel 8080, 

r.' ; '■’Vjnisuse Jot computer date; .. Motorola e800 and tiie ROckwbU 
" ,-'!«■ The device, called OR-300, 6500. .. .'- . • ■ 

- ^makes use of the company’s chip - Up to 32 ^eiyptuvauiables ” — 

' ■%' -^wbidi ' implements the Federal the -essential, keys to the 

:: : 'JData Encz3«rtion. ; San)daiid algo- enciphering . process — r can be 
i.j- g^iaflHn. ^ - stored T and addressed- In t be on- 

-- - Jt can be applied to. financial card fandom access memory. 

. f --^ transaction, terminals, . point of - More . from the company at 
". -jr ' sale teeminais, cash p.o.- Box. 10462, Dallas, ' Texas.-. 


• MARKETING 

Canadians’ quest in U.K. 



A GROUP of Ontaiw companies 
will arrive in London Qn April 3 9 
seeking British-made , industrial 
and commercial 'products ', for 
manufacture under licence' or 
through joint venture in Canada. 

During a tenday stay, the 13- 
member group wishes to see. such 
products as plastic production 
machines; - wood and 'metal signs; 
office ftiriuture;- municipal 
sewage and garbage , equipment; 
commercial _ and industrial 
refrigKratiQjf units; instrumenta- 


tion for liquid and waste water 
'pollution control; metal finishing 
'systems; .* vibration and noise 
control equipment; transistorised 
computer. ■ components '■ and 
peripherals; sheet metal products 
in the hobby-crafts field and air- 
supported structures. 

Appointments’ are being made 
through the-Ministry of Industry 
ahd Tourism’s Business. Develop- 
ment Branch at Ontario. House, 

Charles 0 Street, London SVV2 
4QS: 930 7 6404. 


While other planes are on the drawing board, 
this one is in production. The DC-9 Super 80. 



0itm»JtaiAiiAridrfJV5.Briiainsfira.O«!otjlfemQ^ 
eompuwrs e«r 'msiaHei tya bureau. 
’Thenarrw^ unijaal botthtaclon'sJjTiajr. ^ 
Beta^Oatasolwels/indaMyS to EM- 



It's the expression of leadership 
in the aircraft industry from 
McDonnell Douglas. A role we 
have played since the earliest days 
of air transportation. 

We engineered the Super 80 to 
be the most environmentally 
acceptable commercial jet in its 
class, quieter than any jet now in 


service with major carriers. The 
power plants operate so efficiently 
the Super 80 will use less fuel per 
passenger than other commercial 
jets on similar routes. And it will 
have one more important edge: the 
dependability people have come to 
expect from DC series aircraft, the 
best in the business. 


SUPER 80 

MCDONNEL.L. DOUGLAS 




HAD ONE not heard it said so 
often before, one would be 
tempted to comment that this 
time the moment of truth really 
has come for the Boussac textile 


group. After all, around 
Frs.450m. (£53ra.) owing to the 
banks, some Frs.l50m. due to 
the State for arrears of social 
security payments and VAT, 
losses of Frs.lOm. a month, and 
a turnover shrunk to Frs.700m., 
make the sort of reading that 
would convince the average 
businessman that something has 
got to give. 

But Monsieur Marcel Boussac 
is no ordinary businessman. For 
one thing, he is 89 years old. 
For another, be is one of the 
last of the great French entre- 
preneurs born in the 19th 
century (he keeps company with 
Marcel Dassault in this respect) 
and his personal tradition is 
one of authoritarianism. Finally, 
it is probably true that M. 
Boussac is the only person who 
understands the structure of his 
own group. 

Nor is M. Jean-Claude 
Boussac, the current “managing 
director for life” of his uncle's 
private empire, an ordinary 
businessman. Leaving aside the 
question of whether he is a 
businessman at all, he has in- 
herited the autocratic tradition 



The ‘moment of truth’ for 


an 





~ ■¥ r '-?.W ' 4 

igwl' - -j 


k 'X 


••■ff 

• V*-. ' 


with closures of both spinning dant aircraft canvas, from parity without evolution— and 
and weaving facilities, and new which he made clothes, and without devolution. The Tines 
product areas would be intro- he went on adding factories of clothing and material re- 
duced. This would cost around and manpower throughout the mained the same. Artificial 
Frs.lQOm. to implement and interwar years. fibres made no impact on the 

would mean around 2,500 re- He owned his first Rolls- group’s strategy. It remained 
dundandes among the 11,500- Royce as early as 1913. He indifferent to export ' markets 
strong workforce, probably con- purchased his first racehorse and its Investments were made 
centrated in- the Vosges region the following year, and con- exelusmly within France. Oom- 
wftere there are some 6,000 tinned to add houses, horses, petitors — Agache-Wtflot and 
Boussac employees and where property and the business of DMC — challenged the group's 
whole valleys depend on the competitors for the next 30 traditional market leadership 
company (or writ. years. in certain sectors. . 

The bi g qu estion is whether in 1938 his factories produced Above all, imports of cotton 
the Industry Ministry will im- 88m. metres of cloth. In 1947, goods from low-cost producers 
pose stiff conditions for generat- 
ing the cash Boussac needs, 

Over the past few years the 

company has been treated with David Curry looks at the prospects of intro- 
kid gloves. One consideration, % J r* r 

quite obviously, was the desire dneing professional management into the 
to prevent pre-electoral unem- . - m 

pioyment it was probably this troubled Boussac textile empire. 

which, last September, led the 
Government to defer the 


r — — - Frs.150m.-odd the company ' , 

businessman ai all, ne nas in- Marcel Boussac: Bought hb first racehorse in 7?T4 owed in the shape of VAT and recovering quickly from a war struck Boussac at the heart- of- 

herited the autocratic tradition various soda] security charges. in which most of his factories his empire — on which Boussac 

and intense reluctance to sacn- reasons for believing that M. assemble all the new capital A t the same time, the Govern- had been in the occupied zone, -hii bLames his smurfs aU. 
fire part of the family interests Jacques Petit may last longer, necessary to put Manufrance on ment persuaded the banks to he embarked on a new phase ^ Between iMftud 19fi« 
(either by closure or sale) in It is strongly suspected that the to its feet Before that, he ran stay their hand. of expansion. Making good use 

ord " “ “feguari the rest. main creditor hank^-Credit the Prunnic chain of down- £ addit i on , M . Boussac owns of Fourth Hepuhlic political XS nJESs meZl-iMr- 

All this is by way of saying Lyonnais and Banque Nationale market stores for the Prmtemps the . Rieht-wine newsnaner contacts he added nrestieious wona proaucere rose - 

that the appointment of de Pari^-have insisted on the group. L^urere (and its prefitable SSo the Soup £a£& 1963 «r the 

M. Jacques Petit to a senior job appointment, even though other Now his job will be to coax racing stablmnate Paris-Turf) Dta? In Bento ? eady contraction of ther group 

in the Boussac group, with names had been thought to be new money into Boussac and Finally of course there is no waahine machine Droduced in by a P TOCess o£ Piecemeal 

effect from this week, may not their choice. implement the recovery pro- F, “f * S, closures and disposals. The Dior 


recovery pro- handbook 0a to. deal with France came out of the 


herald the dawn of a new era— Even if M. Petit is, in fact, gramme put together by Jean- Z2 !ir ho TJ; n n^nT » perfume business went to Moet- 

the era of professional manage- M. Boussac’s own nominee, it Claude Boussac — a recovery bav ® 50 much Boussac P la £5 v ? a .. a Heimessy for around -Frs.l40m. 

ment The last professional at least suggests that the family programme which follows .the after bitter haggling. in 1970 


UI^UL. mat y.uiw.'iu.ioi at ICtfdL SUggChia lUdL LUC IdlllllJ UrUKleUUUie WUIOI LUUUWh . LUC ...34-1 T ... *_ AnA __ J Oiiw. uuih uoesoufi. xaa UIV 

manager, M. Claude-Alain Sarre, recognises the need for drastic 1975 recovery programme which en ^ >ire tbeir . >, n t& e :first amputation in the 

brought into the group after treatment For M. Petit is a followed a whole succession of “ d .“® s J ongly f ven ^ textiles sector was made when 

turning round the Prouvost specialist in handling difficult emergency fund-raising and sense of property which the to go to watch the workouts at ^ ¥ ives operation was closed 

Textile concern, lasted only a negotiations. Most recently he closures. provincial middle classes absorb Chantilly. By 1952, Fortune with 1,000 jobs I ost in the npath. 

few weeks in 1975. He was was one of the legion of This plan, now with the In- magamne had hafled him, 0ther closures . ‘ followed 

pushed out when it became ap- ephemeral chairmen of the dustry Min istry, apparently en- Marcel Boussac, the son of crediting him with 8150m. sales ^ ^ mmh hh mm 

parent that his management stricken Saint-Etienne mail- visages the reorganisation of the a Chateauroux draper, lay the from 65 factories and 25,000 

approach was not acceptable order and retailing group Harm- group into six subsidiaries (tex- foundations of his cotton empire workers—the biggest textile . «.' • 

to M. Boussac. He was sue- fra nee, which has had more tiles, shirt-making, clothing before the first world war. In empire in France. ■ JTVVi^l 

ceeded by M. Jean-Claude chairmen in a year than the manufacture, trade, export, and 1914 he' employed six workers The group continued to .■■■■■ 1 .. ■;§“ 


and- Mi Boussac had to dig in- 
creasingly into his pocket to bail 
oat his group. But there was 
never .any clear strategy of 
recovery. 

M. . Boussac himself -came 
under pressure to name an heir 
apparent There were several 
transitory dauphins. M. Jacques 
Brunet, a former governor of 
the Bank of France, lasted a few 
months, Boussacts son-in Jaw M. 
Andrg Aapetit fared no better. 
The Institute for Industrial 
Development figured briefly on 
the horizon and finally " M. 
Claude-Alain Sarre came and 
went To what extent the group 
is now run by the old man and 
to. what extent by his nephew is 
difficult to say, but to most 
people it makes little difference. 

The first real rescue plan saw 
the light of day in 1975-76. It 
envisaged the modernisation of 
equipment, the introduction of 
new nin thing lines, the closure 
of -elderly facilities and the loss 
of some 2,000 jobs. The state 
put in FrsAOm. from its 
economic and social develop- 
ment fund : and the banks 
coughed up around Frs.80m. 

To repay debts and/or provide 
new working capital, it was 
envisaged that M. Boussac would 
sell, or at least pledge, bis last 
r emaining large personal asset 
outside the group itself — the 
choice 85 hectares of open 
horsfrtraining country to the 
west of Paris known as Les 
Haras de Jardy. 

Thinking in terms of its value 
as b uilding lan d (and claiming 


President Pompidou proa 
him planning permission) 
Boussac thought in term 
Frs.l50m. Without pl^ 
permission— which the Min 
refusedr-the price came , 
to between a quarter and a 
of that. The banks said It \ 
stand for some Fts. 100 - 12 q 
is still unsold — an examp 
the difficulty government 
banks have had in pinais 
Boossac down. 

The rescue plan solved 
tically nothing. Six month] 
with loan repayments dor 
everything sellable al 
mortgaged, it was oqiy 
State’s deferral of paymez 
VAT and social security cb 
which kept Boussac afloat 
industry ministry \ 
gloomily about bankruptcy 

But it was obvious fiu 
solution was very pre-ela 
A new rescue plan wa 
manded and the pressure, 
the banks and the minlst 
a managerial strong-man 
whom they could deal an> 
would finally take efi 
running of the group c 
family hands, became ins 

The. plan now wifi 
ministry is the response 1 
pressure, and the au 
M. Jacques Petit The gr^ 
moves into is stHl the coil 
leading ■ ' maker of m 
mackintoshes, towellinj 
house fu rnishing s anti 
around 12 perl cent '( r 
national markets biJ sjm 
woven Jahiiis. - : v- * . : 

But the. haemonha 
incessant: a- /FrtjgQio^j 
1976, Frs.80nL 
probably as badj.^^g 
come; those Frs.6WnsM 
in various debh^K| 
averaging a 32-hottr‘iflM 
imminence' of redimdi^« 
the overwhelming.’^^ 
creditors. • " 




' *• •• * 


Boussac, thus keeping the affair Fourth Republic had Govern- paratextile) under a single hold- produced some 700 kilo- prosper, though without the 
in the family. ments in a decade. He quit ine company. Textile activities metres of thread. In 1918 he previous record of growth, until 


Job creation’s real cos 


in the family. ments in a decade. He quit ing company. Textile activities metres .of thread. In 1918 he previous record of growth, until 

Nonetheless, there are some when he was not able to would be sharply scaled down, bought a vast stock of redun- the mid-1960s. But it was pros- 



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THE GOVERNMENT’S : job 
preservation and creation; sub*, 
si dies have become more, rather 
than less, controversial ' the 
longer they have lasted. 1 -The 
recent modifications and exten- 
sions of the measures— partly In 
response to charges made by the 
EEC Commission of' possible 
unfair, competition, — ;can be 
regarded in widely differing 
ways. They can be seen, by 
the Government, as providing 4 
sensible means of offering 
employment or training oppor- 
tunities. often at little additional, 
cost compared with mai nt ai n i n g'' 
people in unemployment, white 
the alternative view is,-that 
“ spoof ” jobs are being created 
and an inefficient use of labour 
is being encouraged. . 

The economic implications of 
the measures are not easy, to 
assess because of the variety of 
schemes and the many changes 
made to them, since the most 
important, . the Temporary 
Employment Subsidy, was intro- 
duced in August 1975, at a time 
when unemployment was rising 
sharply. However, an attempt to 
assess the economic effects was 
made by the ' Organisation for 
Economic Co-operation and 
Development in its annual sur- 
vey of the ILK economy pub- 
lished in mid-March. 

The starting-po^nt is the 
number of workers actually 
being helped by the various 
employment and training 
measnres— -320,000 in mid- 
January this year. But this 
overstates the impact on the 
number of unemployed, partly 
because not all those benefiting 
from a scheme will register as 
unemployed. Taking account of 
this, tiie Department of Employ- 
ment has estimated that as a 
rough nrie-of-thumb about 
250.000 people are. .now being 
kept off the register. 

The OECD goes one stage 
further and calculates the dis- 
placement effect This arises 
because, in subsidising a number 
of companies, some displace- 
ment of output and employment 
away from un subsidised com- 
panies is entailed. On this basis 
and allowing for under-registra- 
tion. the net effect on registered 
unemployment is Just over 
200,0()0, which is roughly 
equivalent to 1 per cent of all 
employees. 

The net employment effect of 
the measures has been growing, 
according to OECD, from 40.000 
on average in 1975-76 to 144.000 
in 1976-77 and to 204,000 in 
1977-78. 


The latest Government 
modifications to the measures., 
are intended to increase the 
number of job or training places 
from 320.000 to over 400,000 by 
March 1979, so that the net 
employment • effect should be 
raised perhaps to about 250,000. 

But this only presents one 
side of the picture. There is, of 
course, the cost, which has been 
estimated at £900m.' gross 
between 2975 and the termina- 
tion of tiie existing schemes next . 
year. This works out at roughly 
£1,100 per head,, but after allow- 
ing for savings In social security 
payments \ \anfl ~ additional 
national insurance receipts the 
net cost to the-Goyernment may- 
be only between one-third and a 
half of this amount. The revised 
measures will cost an estimated 
£300m.. gross over the next two 
years. - 

This can be regarded as a re- 
latively inexpensive way of 
keeping unemployment at a. 
lower level than it would other- 
wise be. Indeed the Govern- 
ment’s special measures appear 
to explain why the increase in 
the number of those out of work 
in the last couple of years has 
been smaller than many econo- 
mists forecast. 


ful in reducing un employ 
in maintaining . , equipme-r . 

manpower during the reel 1 
Its extension ofrer a' ;* *' 
period bears the risk a t ; ■ • 
forcing distortions in tit/ ' * 
dnetive sector by promote t 9 \ 
inefficient use of labour -t? 4 
supporting inefficient flj ^ * 
the expense of urisutrj — 7""T"~ 
establishments,” - 
• Part of the prbbieij-4®®| 
controversy, has arisen 1 
more than half of those i H 
Ing from TES are in tin \* m 
ing, footwear and textile -fe -1 
The impact on these in< V l 
is . considerable-rwell < £L\ .• 
tenth of textile employi 
supported; in view of t V. 
relative -wages in this sec — 
subsidy makes a big dif “ 
to labour costs. ' J’ 

The ‘ objection froni 
EEC countries is that'-l 
centrating subsidies on 
sectors the XJJC has be . . 
serving jobs at home by 1 
ing unemployment to 
members of the ComT — — — 



Intervention 


More fundamentally, It; 
argued that TES is ir 
primarily to keep non-# 
tive jabs in existence * 
any accompanying eff 
create employment 31. 
can be riewed as mwv 

mar»1v on stfpmnt to 


The schemes have also be- 
come much more than a tem- 
porary response to the depths 
of the recession. . 

The measures have gradually 
been transformed from a tem- 
porary to an apparently semi- 
permanent part of the. Govern- 
ment's interventionist armoury. 
And it is this move which has 
created concern among both 
the UK’s -Community partners 
about possible unfair competi- 
tion and among economists 
about: the distorting effect of 
such measures on the efficiency 
of the economy. 

The OECD survey pointed 
out that “ if the Temporary Em- 
ployment Subsidy was snccess- 


merely an attempt to fcet^ 
panics in existence and i 
in jobs during a reoessio , 
these sectors, In pa rties] • 
tiles, will have to contraj 
when the economy^ 
because of the compStitS 
developing countries. .1 
is merely postponing : :fl| 
and .could be called a njl 
disguised form of proteil 
The response to tii'esjl 
cisms, and to the EE€| 
mission’s suggested mil 
Hons, have taken the ell 
limiting the application W 
TES, the introduction of ; 
time working subsidy anc t 
tension of the small fire | 
pioyment subsidy. . I 


Peter 


Metalrax 


?mak 


(Hoidings)Limited 

An integrated network of 20 engineering 
companies in England and Wales 

'A very substantial 
increase' 



ent w 


she 



Turnover 

Profit before taxation 
Profit after taxation 


11,041,765 7,283,77 
1,465,748 844^1 

862^559 646,17 


eurppear 





Part of Scandinavia’s foremost technical organisation. 


vTo'rent -a'carin London, 

4 -Bris tol.^So tit ham pton 
. Manchester.. Gfasgowi. ; 
Edin b u rgh? Bi r m i ngha m , 

I j-y Gat wick, Heathrow,'- •- 


Brighton.^:;; 


01-848 3031 


Profit before taxation amounted to £1.465,748, a wy ® 
stantial increase over last year's record figure and 4496 on J 
sssels employed. . 

Dividends . 

The -maximum dividends penrtitted by law are wing tbob 
mended. H dividend restraint were relaxed our dividends w« 
be suitably increased. ' ' 

Shareholders funds 

Shareholders funds have in c re as ed from £&3So»do? 
£3^32235. 

Scrip issue - ■ - .... 

A scrip issue of one ordinary share for ovary ten h«a bw 

recommendedl 

Liquidity 

Ourgaan'ngisstillminifhaL . 

Trading prospects «rf-rhod 

We stated the current year with extremely strong 
and in the absence of complete catastrophe tne tesuns 
first six months of the current financial year wm oe 
record. The board views the whole year with cormo^ 
and expects substantial further progress, - 


'orl 


*Prorr 

^cu 


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Jnjyie U. ±.:!l ’ j vVa U d : : ill Car. Reiisa l ‘ 


Copy of the report end accounts from : ^ 

Hie Secretary Metalrax (Holdings} 

Ardath Road Kings Norton Birmingham B38Ur** 
telephone 021 -4S8 6571 


»n 

























I 


14 

LOMBARD 


The tyranny 
of names 


BY ANTHONY HARRIS 

THE ROW between the Treasury 
and some of the spending 
Ministers, reported by my col- 
league Peter Riddell last week 
seems destined, like the White 
Paper on public expenditure 
earlier in the tear. to provoke 
one of those yah-booh arguments 
in which everyone is quite right. 
Difficult definitions are fixed 
arbltarily; subsequently politi- 
cians try to use them for obfus- 
cation. or find that they have tud- 
rif-niy turned into constraints on 
policy. V, Tie her as loophole or 
constraint, they are usually uun- 
sense. 

The row in this case, you may 
remember, is about whether or 
not it is permissible to use -he 
contingency reserve built into 
the expenditure plans for next 
year for a number of no doubt 
desirable objectives — bringing 
forward higher child benefit, 
raising pensions to a nice round 
political number, and so forth. 

:Yoh- in one sense such steps 
are clearly permissible in them- 
selves. whether they are ren- 
sihle nr not: these are the deci- 
sions we elect Governments to 
ma[:e. In another equally clear 
sense they are not permissible. A 
contingency reserve is what the 
name implies: an allowance for 
the unforeseen. To allocate it in 
advance to planned expenditure 
is a contradiction in terms. 


Deception 


Why should anyone want to do 
anything so inherently absurd? 
one purpose is deception: but it 
is in some senses an innocent 
deception. The deception lies in 
claiming that since the money 
has already been provided, ex- 
penditure plans are unchanged. 
Clearly dishonesL On the other 
hand, the estimate published 
with the Budget for the borrow- 
ing requirement for the year 
does attempt to be realistic; 
officials do try to make some dis- 
tinction between paper plans and 
what is actually likely to happen. 
Since they have done this 
notably badly since cash limits 
came in, over-estimating the 
borrowing requirement by a 
basic £4bn. in the current year, 
for example, it is even possible 
that some spending plans like 
those proposed would reader the 
estimates more accurate. 

Further, if the decision were 
delayed until later in the year, 
when they operate, no one would 
complain about using the 
reserve: 

Furthermore, you will see. if 
you look at the list, that the 
inclusion of child benefits looks 
a little odd: for these are simply 
the cash sums now paid out in 
place of child tax allowances, for 
the good reason that this method 
is more helpful to the poor. No 
one ever doubted the Chancel- 


lor's freedom to make decisions 
about tax allowances in his 
Budget: but now that we have a 
“ negative tax ” instead it counts 
as public ependiturc. and no 
change in announced plans is 
permitted except through 
fudging. A definition has 
become a fence cutting off a 
comer of the Chancellor's own 
territory. He is being urged to 
cross it by misusing another 
definition. 

The present Government is 
certainly not the first to be bam- 
boozled by its own rules. The 
late lain M3cieod thought he was 
actually saving the taxpayer 
money when he abolished capital 
grants and paid out tax rebates 
instead, and could not be per- 
suaded that it was not so. 

Treasury officials can even con- 
fuse themselves. After trying 
three definitions of the harden 
or public spending — not one of 
which included the cost of tax 
rebates— the Treasury gave up 
the whole attempt, together with 
its apparatus of footnotes warn- 
ing readers not to believe the 
figures, in this year's White 
Paper. Having redefined public 
spending to exclude market bor- 
rowing by nationalised indus- 
tries. the Treasury re-redefined 
it to exclude Government borrow- 
ing to pay off the foreign cur- 
rency debts incurred by those 
industries. 

Things like the sale of BP 
shares appear and disappear like 
a jack-in-the-box. Small wonder 
that no one has been able to 
a rree whether the figures which 
the Cabinet is now trying to 
fudge represent an increase of 
2i per cent, or 8 per cent. or. as 
the Treasury guesses. 4 per cent 
fa figure which can only be de- 
rived from estimates not pub- 
lished in the White Paper at' 
all). 

This note may have suggested 
that ail the trouble is caused by 
efforts to deceive: but at least 
half of it is caused by meaning 
well. Officials are always trying 
to pick a more economically 
meaningful place to draw various 
lines. The only result is that 
words and figures change their 
meanings from month to month. 

Yet the comprehensive efforts 
which might be really helpful 
are still lacking — a presentation 
oF revenue and expenditure for 
the coming year in the same 
document, using the same kind 
of funny money: a presentation 
of what the Americans call* “tax 
expenditures” (allowances and 
rebates) in the same column as 
disbursements; and a proper 
measure of the tax burden, in- 
cluding other charges. Part of 
the muddle is just politics, which 
someone has defined as lying, 
hallowed by custom; but this is 
not a game in which the 
accountants should join. 


Getting the picture 

right in the home 

THERE IS at least one still Lake Lucerne— there will be ter speed of T/lOOth second.be- 
camera in 60 per cent, of all more latitude in the exposure fore discernible camera shake 
households in Britain. There and in consequence more room is eliminated. It also helps to 
are some 19m. television sets, for error. ensure a firm and stable stance 

and worldwide a total of nearly On a domestic television re- before tripping the shutter and 
400m. in use. While 8mm. home ceiver, similar effects are ob- to hold your breath at the 
morie cameras have competed servable if the brightness or moment of exposure, 
to join these impressive statis- brilliance control is turned up 0 n television receivers not 
tics, the race may soon be on to or down too far. But in order muc h can be done by the. viewer 
sell video cameras to the to judge this accurately on a to improve sharpness' Again the 
domestic market — no doubt at colour receiver, the colour test card should give some due 
the expense of the 8mm. should be turned down first to t0 inherent sharpness especi- 
cameras. The new VHS video- yield a black-and-white picture. a n y those 'test cards’ (as in 
cassette recorders from JVC The TV receiver usually in- UJx.) which incorporate resolu- 
f Japan Victor Company) are corporates an additional- control rion charts— sets of lines at de- 
now in British shops — and prob- not available on the still creasing intervals of space and 
ably will be marketed in Ger- camera: contrast ) This effec- thickness which will fuse to- 
many by Saba, in France by tively compresses or extends gether on a picture with, poor 
Thomson -Brandt and already the tonal range, either crowd- resolution, 
appear in the U.S. under mg all the shadows together 
various well-known labels. 


In Japan. JVC bas already an- W? “"onSy^ 

“ duce f STM £? ZSSST 

£380) to go with the recorder, picture. The correct setting * t00 attention to this 
and this may become available for contrast is best made (again __p ect _« record in 2 

in the OX. soon Nest week Jffl. . blne^d-whUe pirtnj*) 

Sony will be launching m when the test card is being oear ^ t .. ^ M 
London their rival Betamix transmitted: invariably thia 
system, which is two months card incorporates a grey scale, 
earlier than expected. 


ing on them- produces shadows 


The war is hotting up to bring 
this high technology into the 
home alongside the hi-fi. But 
meanwhile, most people are still 
incapable of adjusting their 
television set correctly and not 
many more are very proficient 
at getting the best out of a still 
cam era. It is time to put the 
picture in focus. 


graduated in rteps from wWte 

shape of the. object. Frontal 
lighting or very diffused light- 
ing tends to destroy shape in the 
subject (usually but not always 
a bad thing); lighting from the 
side and rear, and point source 
lighting, enhances, the shape; 
Finally,- the picture coheres 


FILM and VIDEO 

BY JOHN CHITTOCK 


to black — and at the correct 

contrast setting each step will or disintegrates — teases or bores 
There* are" four main factors ^ clearly different in tone from — in the composition. It begins 

that influence the technical and tboa! ad ) are « «> iL « itJl u,e t ™ wanto 

aesthetic success of a recorded Sharpness 0/ the picture be- frame straight, which many 
picture— whether obtained in a gins. of course, at the camera people fail to do: in placing the 
still camera, on a television set end with correct focusing. The main point of interest at a place 

or through the latest and most depth of field-that is. the within the frame that is corn- 

expensive of video cameras: pic- that will .be sharp either fortably balanced in relation to 

ture density and contrast side of the distance focused the whole: and in deter m i n i n g 
sharpness, lighting on the sub^ upon— obviously affects this, whether there is or should be a 
ject and composition of the pic- Smaller aperture settings on main point of interest anyway, 
ture To these might be added lens yield a greater depth Is it a portrait or is the figure 
fidelitv nf colour but this is of field : hut the extent of this standing there as embellishment 
frequently conditioned by some range varies according to the to the landscape? 
if not all of the other elements, precise distance at which the In the case of movies, film or 
Picture density and contrast Jens is focused; there is an video, the same principles ex- 
in a still photographic camera optimum setting (the hyper- tend even further because the 
is initially governed by the ex- £ocal distance) at which, the camera is potentially mobile 

posure that tj,e sum effect greatest range will be obtained, during the shot Video and 

of shutter speed lens aperture Shorter focal length lenses also movie cameramen too often 
setting, subject brightness and Provide a greater depth of field, move the camera during a shot 
film speed. Each or all can be Sharpness is also affected by when it is not necessary, 
varied provided the result movement, either in front of Camera movement should have 
produces on the film the correct the camera, inside it or- in the a rationale unconsciously 
amount of light needed to yield hands of the operator. If the drawing the eye of the viewer 
a satisfactory image in the subject is moving, this will to new elements which are 
emulsion of the particular film yield some degree of blur on relevant Generally it is better 
in use. Over-exposure will the image — greater if the move- not to move the camera ar all 
cause delicate highlight detail meat is fast or the shutter speed unless for a very good reason, 
to be lost in the final picture, on a still camera is slow. If the Attention to these principles 
under-exposure will lead to camera is hand held, this will may produce better pictures. At 
blocked-up shadows: but if the almost certainly introduce shake least it may yield a greater con 
subject has no extremes of and some loss of sharpness in sciousness of the criteria at 
shadows and highlights— such the image: surprisingly, a hand stake when professionals are not 
as a misty October scene on held still camera needs a shut- employed 


■ Financial Times Tuesday April 4 197S 

Alaskan Prince has class 



Nat 


THREE FLAT meetings and one in Jlaydoek’s 
under National Hunt rules com: Stakes, 
bine to make to-day one of Alaskan Prince. a 
racing's busiest midweek after- Marshall-trained Prince Regent 
noons of the spring. colt, goes for the Ayr Spring 

Although it .is often difficult SS iCap ° n ^ premlet 

Ing “off the boll^afSTtbS afthe !£!!nM of IS^St 
campaign. Flat winners are Set oh this track, should have 
usually less-; . .difficult to spot, too . much class for another 
^ T ^ ie ~ a T^ 2 £ 5* e niariret is course winner. Cutting Comment, 
respected in the first few weeks to whom he concedes 6 lbs. 

Of the season. . ■ . ' 

Araphos. and Alaskan Prince' » LTff'wS'lS 
are two Flat runners who should ggLJggSk f «i 


Flatman with ‘ them— a price ^ 

appears to have f£w takers. 
BUI 


the 


with an eye to the future, is the After laying several good bets 
Barry Hills-trained Araphos, to supporters of the Ascot One 
another promising three-yeax-old - Thousand Guineas Trial winner. 

Spring in Deep Sea. the cora- 


RACING 

BY DOMINIC V/IGAN 


pany laid both Lily Marlene and 
Modella . each 


lella 
Hinton remains 


way. Cherry 
a 5-2 favourite 


haydogk 

2.00— Salbob 

2J0 — French. Warrior 

3J)G— Christmas Visit . 

, &30 — Acka b arrow 
4100 — Araphos** 

L30 — Inca Warrior 

A*R . 

3.20 — Alaskan Prince 4 ** 

5.00 — Persepolis 

LEICESTER 
2 J.5— Sand Dancer 1- - 

2.45— Speedway Pfintf* 

3.15— Hills Treble*/ 
3A5 — Little Nugget 

4.15 — Northern Dynasty ' 

4.45 — Elfinaria 

SANDOWN 
&20 — Crofter • 

3.50— Ten Up 


Judgment for Me Alpine 


to sport the emerald green, royal ... 

blue and white colours of Mr. SIR ROBERT McALPINE and taking - place between bin 
Robert Sangster, so successfully Partners, the building .company and Mr. Malcolm McAlpine 
carried by such horses as Alleged which built a £264,000 stand at see how best this matter cai 
last season. ° Fulham Football Club, bas been resolved to the sadsfachor 

a respectable eiehth nf m awarded judgment against the both sides. 

betod^a^SrlS a r^denlvi® ** f “““l* “ Thl8 would ^ either 

at Newmarket in October, this V 88 dfeclose . d ltL LoQd(m >ester * discount cash payment n 
cbesnut Gyr colt, whose dam . y * ' . staggered payment over a ana 

Athenia II is a half-sister to both The company obtained an order of years. 

Sunny Way and CrepeUo’s.dam for £273,857, the total amount of At one stage, Fulham off 
Crepuscule. is thought to have its debt against the duh, plus £120,000 in full and final sc 
come on tremendously over the- S-per cent interest — dating back meat of its five-year debt, * 
close season. ' **■ to when the Sir Erie MOler stand this was rejected. 


If so. lie should .have Hale compltted in lBTS-amount- McA]ptIle .. W(l ; ' [. 

fficulty in accounting \ for iq tiua.wo. obtained judgment in this * . I 

mA.mf D.— fj Wt'. T— n.U.„ P. rtlO.fo rB <1> hirt IUA DM < Mlt 4 


difficulty 

Lester Piggotfs mount, - 
and Edward Hide’s monht, 



Mf/ Brian Dalton, secretary of but we are • not preparec - 
Fulham, said fresh talks . were comment further at presenL’ " 


ENTERTAINMENT GUIDE 


OPERA & BALLET 

COLISEUM. Credit cards i 01-240 3 
RHtmLORS 01 -S3 6 3161. 
ENGLISH NATIONAL OPERA 
Tomor and Fri 7.00 Farce of-.De: 


Don Glaraani 
seats always 


■ final ne 
available 


say o! . 


pbono bookings tram tomorrow. 


COVENT CARDEN. CC WG ■--- 

Tonight. Thur- Fri. Md- M ot. 7.30- -p 
The 

gsa-. avah-a 

SUNDAY CONCERTS ' 

9 Aoril 8.0 pdS. Itaana Cotriihes. Vick 
£t-£S. . . . 


THEATRES 

ADELFHI THEATRE. CC. 01-Mf • - - 

7 JO. MaBL fT jiura. 3J S»L 4.0. 

THE BEST MUSICAL 
. of 1076. »»77 and 1378! 

•• LONDON’S BEST NIGHT OUT. 
Sunday frod?- „ 

a-ifa 1 ? biw" tBMH, 



t Indicates programme in 
black and white 

BBC 1 

6.4 n- 7.55 a.m. Open University. 
12.4S p.ni. News. 1.00 Pebble Mill. 
J.45 Ragtime. 320 Pobol y Cwm. 
3.53 Regional News for England 
< except London). 3.55 Play 
School. +-LS0 Champion the 
Wonder Horse. 4.45 Take Hart 
with Tony Hart. 5.05 John 
Craven’s Newsround. 5.X0 Stop- 
watch. 525 Ludwig. 

5.40 News (London and South- 
East only). 


5J5 Nationwide. 

6.20. Nationwide 

550 Young Musician of the 
Year. 

7.20 The Rockford Files. 

8-10 The Standard. 

SM News. 

9.25 Pennies from Heaven. 

30.45 Tonight: Who lulled 
Martin Luther Kinv. 

I1J5 Weather (Regional News. 

. All Regions as BBC 3 except at 
the following times: — 

Wales — 3.55-6-20 p.m. Wales 
To-day. &50 Heddiw. 7.10 The 
Liver Birds. 7.40-8.10 Yotlng 
Musician of the Year. 1L35 News 
and Weather for Wales. 

Scotland— 5 JS5 -6 .20 p.m. Report- 
ing Scotland. 11.35 News and 
Weather for Scotland. 

Northern Ireland — LSMiS p.m. 


Northern Ireland News. 5.55-&20 
Scene Around Six. 11-35 News 
and Weather for Northern 
Ireland. 

England — 545-&20 p.m 
East (Norwich); Look 
(Leeds. Manchester, Newcastle); 
Midlands To-day (Birmingham); 
Points West (Bristol); South 
To-day (Southampton); Spotlight 
South West (Plymouth). 

BBC 2 

6.40-7.55 ajn. Open University. 
lLOO Play School (as BBC 1 
3.55 p.m.). 


12.00 The Andy Williams Show. e htv Gnorumag-** HTV CjmiiI 
12 Tf> a m flow Hnifhpr Service except: U8-L25 p.m. Penawdao 

ajn. uose^ Heainer Newy-dl011 Y omd. A20 Mirl Mawr. 

Emmanuel reads tech mgs 4 jmas seren wib. u»U5 y Dydd. 
and. sayings of Budda. idjo B.nvrd. iub World in amioo. 

Look AH IBA Regions as London ^ 

North except at the following times:- 

lines. S.1S4J0 Rcoort WciU 


ANGLU 


SCOTTISH 


*Jf - ajn. Cauda Five Portraits. I8.2S 

Manfred. 10.W- Hanna Barbers Special. . « . _ .. tn , 

UJt Winning with WilUe. US pjw. *- ni - Taraan Goes to India. 

mcib Neivs. • 2J0 Hooseparor. SU5 5Urnn S Jock Mahoney. Westway, 

Ennnerdale Farm. LM About ASglta. B m^NeJ^anri^RcSd* 1 'iLmh^'sJS 

7D0 ChaOeng.-' of the Sexes. 7 JO Get ^ . p - m - C'!*’*,* 1 ** 

Som„ [ n n m gaincy- I2M a.m. p,wt * nd Frteodfc SJD Crossroads. •'* 
A^ujloBJ.% Scotland Today. 6J0 What's Vour Prob- 


F.T. CROSSWORD PUZZLE No. 3,633 



ACROSS 

1 Well-built public transport 
surrouuded by rubbish (6) 

4 Using abusive language about 
wickedness in arena (S) 

9 Risk European mark and 
wrath (6) 

10 Change clubs for diamonds ? 
(Si 

12 Money just for fine textile 
fibre |S> 

13 Perish with ringleader in bar 
( 6 ) 

15 Metal in the first place (4} 

16 Painter with eastern title left 
tn enrol (10) 

19 Find out again that commu- 
nist is taking shelter (10) 

20 Emend unusual diet (4) 

23 Cloak for confused old chap 
(6) 

25 One who transfers like Italian 
gentleman (3) 

27 To make possihie about sis is 

to be desired (S) . . 

28 Dry river is free from danger 
( 6 ) 

29 Cloth worker of rank (S) 

30 Give evidence at trial (6) 

DOWN 

1 Root caught in tyre (7) 

2 Where musicians play Bach 
initially and suffer (9) 

3 My tea’s hot, or so it cou 
appear (6) 

5 Lug left for nobleman (4) 


6 Pub at cathedral city? 
Naturally! (S) 

7 Imply that it may require fine 
deviation to the right (5) 

8 Chap admitting member in 
clothing (7) 

11 Beam when team leader gets 
price of redemption (7) 

14 I’m taking people south-east 
and it’s great (7) 

17 Contract in false-teetb (9) 

18 Escape without notice in 
adventure (8) 

19 Change clothes to compensate 

21 Bombastic and explosive 
about impulse (7) 

22 Undress and plunge one way 
(6) 

24 Is nothing right for a sweet- 
heart? (5) 

26 Family left in prison (4) 
Solution to Puzzle No. 3,632 


aaraEHH HaaacaEaH 
Q nsn h o m n 

QEQinnQHEH £251130 

3 L3 E H □ 0 H 

□□B0 HHdtaniaiiBcaH 

E3 E G H 0 EJ m 
HEBBonH aaaHHB 
an q □ n 

□□aaoE HBQaaan 
a a b 
munm 
sno 

n 0 


rt/Wri r 
A M*m I 

kTTuRo 


ren. 

2J0 Having a Baby. 

4^5 Open University. 

7.00 News on 2 headlines. 
7.05 On the Rocks. 

7.30 Newsday. 

8J5 Tao: The Way and 
Power: 2.000 years 
Taoism in China. 

9.00 Pebble Mill Showcase. 


its 

of 


Icra? ?D0 Bmmerdfile Farm. 7J0 Cet 
A TV Soni<? In. 1L30 Laia Cafl. U-3S Wlttiia 

id Am; Gardening Today SpcctaL Tl,cse Wal,i 

115 ».n,. Otter People's chad- ^ SOUTHERN 

Professor Balthazar. US pju. ATV 9J5 a.m. Stationary Art. UUW "The 
NevTsdesfc. 505 Laverne and Shirley. Gentle Giant." starring Dennis Weaver. 
SM ATV Today. 7m Emmerdale 1U0 Winning with Wilkie. . UO pjh. 
harm. 730 cuckoo Waltz. 1130 Southern News. 2.00 Hoasepany- 5JS 
GibbsviUc. Bero 1 Boop. 5-28 crossroads. 0.00 Day 

__ by Day indudlnc South snort, 7.00 Emmer 

BORDER <*«le Farm. 730 Get Some In. 1130 

935 Am. Clue dub. 1038 Film Fea- S*™ N p n ^ E ^ on U ' W DriV * VL 
tore: •* Tons of Trouble." U-20 Westway. ** m - Pollce S“mc° n - 
11-45 Oscar. tUO p.m. Border News. TVI\TC I’L TC 

2.00 nousepany. 5J5 Ont of Town, ue 1 1 L’C 1 Lto 

o 1 ft erh„ ... Lookaround Tuesday. 730 Eunnerdale 93 s a.m. The Caod Word roDowrd by 

9.30 The Man Alive Report, the Farm. 738 Get Some In. U38 BoretUL North East News Headlines. 938 Oscar 
Story behind drug abuse in tl235 Am. Border News summary. Peterson Presents. 1930 The Wrong 
Britain. ru A mivtct ’ Ann of Uie Law." starring Peter Sellers. 

1 ft 1 ft UaAINlNiX 1138 Westway. 1135 Oscar and the 

f° ern ^ T 31111 Pln , ts - 13S p.m. Channel Lunchtime News and Wooferoo. UO p.m. North Baa 

10.4a Late News on 2. Wfcail On Where. 515 The FlitnstoncA News and Lookarrond. 5.15 Friends or 

10,55 The Old Grev Whistle Test *-®° al si *- Treasure Hunt. Jf* n - 7 M r E n,meru 

,,e uta wrey vvmsuc test. 7J0 Angrls. 1038 Channel Late rt8,e Farm. 730 Cel Some In. 

News. 1130 The Streets of San Francisco. Polk* Surgeon. 1238 Epilogue. 

123S a.m. CommcnUircs ct Previsions 

Mcteomlogieut'a. U Lj 1 tn 

r;D * MPI A Mi 103S a-m. Tree Ton Tates. ID JO Sesame 

UUAmriAlli Street. 1138 Weitway. U.45 Oscar. 

455 Am. First Thing- tULM Feature 130 p.m. Lunchtime. 438 Ulster News 
Film: “ Abbott and CosteUb ui the Headlines. 535 Friends of Man. i-08 
Foreign Legion." 11.29 Wost4ray. U35 Ulster Tclcrisloo News. 5.85 Crossroads. 
Oscar and the Great KWeroo, 138 P.m. 830 Reports. 7.88 Emmerdaie Farm, 
thp Wild runni™ , n -- Grampian News Headlines. $35 Indoor 7.30 Get Some In. 1130 PrtFCcIcbrity 

the Wild Country, lu^o Amraated League. ABB Grampian Today. 835 Out Snooker. 1235 a. m. Bedtime. 

Classics. llAa Oscar. 12.00 Paper or Town- 738 Emmcrocncy. mo Reflec- • . 

Play. 12.10 p.m. Daisy, Daisy, tions- UJS The Streets of Sag Francisco. WESTWARD 

12.30 A Fair Chance. 1.00 News. rni vi tiai »30 Am. Look and See. 10835 Fca- 

120 Help! 120 Crown Court, UKAiKADA ture Film: “ Good Morning Boys. 

24)0 After Noon. 225 Sam 220 Mooch. M35 Harriet at the starring Win Hay. U30 Westway. 1L45 

lxoon - Fete. 1338 The Stationary Ark. 11.05 Oscar. 1237 pan. Gus BWeyhim’s Birth- 

The Beatles. 1U35 Mister Ed. UJB days. I3D Westward News Headlines. 
A Handful of Songs. 138 p.m. This Is 535 The Flint stones. 838 Westward 
Your Right 538 This Is Your Right Diary. 730 Treasure Hunt 730 Charlie's 
(repeat Of the lunchtime programme). 535 Angels. 1038 Westward Late New*. 113* 
Crossroads. 6.00 Granada Reports. 6J0 The Streets or San Francisco. 1235 Am. 
.Emmerdalc Farm. 730 The Bionic Faith far LUc. 


LL40-1I.30 Closedown: Michael 
Kilgarriff reads “ Small 
War ” by Leslie Norris. 

LONDON 

920 a .111. Beany and Cecil 
Cartoons. 9.40 Anna. 10.05 To 


1130 


Portrait of a Family. 420 Run- 
around. 4.45 Magpie. 5.10 Sports- 
scene. 

5A5 News. 

620 Thames at 6. 


Woman. 1138 Homicide. 


HTV 


625 Crossroads. 

7.00 The Six Million Dollar Man. 

8.00 Rising Damp. 

820 Armchair Thriller. 

920 Wilde Alliance. 

10.00 News. 

10M Eoal, >' G ° in s to *• SS“!5i 

1120 Man and Woman. 


YORKSHIRE 


938 Am. Canada— Five Portraits. 1835 
438 Am. Sesame Street. .1830 Ur. Bug The Undersea Adventures of CapUln 
Goto to Town. U.45 Oscar the Great Nemo. 1038 Showcase. 1138 The Wells 
Wooferoo- 130 p.m. Report West Head- or Montrose. 1130 The Electric Theatre 
lines. 13S Report Wales Headlines. 230 Show. 130 P.m. Calendar News. 5.15 
535 Pope ye. 530 Cross- The Mary Tyler Moore Show. 638 
Report West. A 15 Report Calendar ■ Em fey Moor and Belmont edi- 
JVaJos. 638 Emmcrdaie Farm. 738 The tlons 1 . 738 Enimerdale J-'arm. 738 Get 
Bionic Woman. U3o Police Woman. Some In. 3130 Drivc-ln. 


RADIO I 

<S) Stereophonic broadcast 
5.08 ajn. As Radio 2. 7 02 


247m Sibelius. 238 Lindsay String Quartet, 735 The Archers. 738 Time for Verse, 

pan 1: Haydn. Bartok «Si. 230 Interval 730 Rudolf Scrkln Plays Beethoven 

... . Reading. 238 Strina quartet, pan — Sonatas tSi fas Radio ai. 938 Kaleldo- 

_ . _ .. _ Jj oe J Mozart. 338 A Little Light Music (SI. scope. 939 Weather. 10.80 The World 

i 4J0 Come Live With Me and Be My TonlghL 1830 Nor Now. I'm Listening 
Bornclt including 1238 p.m. Ncwsbeat. Love fS*. 535 Jazz Today iSl. JS35 Again. 11.08 A Book at BcdUme. 1135 
s*- ^r 31 ■ D »\c Leo Homeward Bound. 1635 News. 1638 The Financial World TonlghL 1130 Today 

S fiSS^g-dta SnSS Bound .conttnuedl. 1638 In Pariiament. 1238 NeWA 

■5 ‘5» ‘Wys “dio at. 18.02 John Peel rjft.iiiv-t tjo Rnfe 
<S>. 1230332 a.m. Aa Radio — 


VHP— 635-835 Am. With Medium Wave. 


_ 1838 rtiinklng for the Body Politic f spc- t>d p n.j; A r An j._ 

1200m and VHP dal seminar chaired hy Anthony King). hhL 1X3010 LOQUOIl 

mo News. 113501.40 And Tonight's 206m and 942 VHF 

6-M Ain. As Radio 2 . 630 Rush Hour. 


J7°±i 


c- 




Lifelines. 738 Rndoir Serial 1 Piers B cet- 

vhp RarfiM 1 Sonatas, concert, part I >S>. 838 835 News HeadUoes. 835 The Glums 

^ 2—SJK^ ifl. With Fin rilm- a Voice. 835 Concert, part S part L 93A3.B5 n.m. With Medium 
,fll . 8-20 The Ring and the Book. 10.85 Wave. 335 Hcrmsprong tSi. 430-Cti 
JSf: K d 0 L Julian Bream Plays VMas-Lobos «S». WBli Medium Wave. 

WLID Radio 2. - - 

RADIO 2 

538 Am. News Summary. 532 Ray srfmhnrr Sane «n ~ 

Moore with The Early Show 'Si Including hUSi” 3 vh =°® L_T£3Toa 7 m 

635 Pause thr Thought. 732 Terry Wogan -5^ p H o ,J0 ’- 20 London Lhrc. 

fSi including *37 Radng Bulletin and _ 7 „ ^ oen Umwalty. LUU la Town. 12.03 P-m. Call In. 233 

835 Pause tor Though L. 1032 Jimmy R AT) JO 4 :DS Shwcnse. UB Rome Run. 638 

Young <S>, 1215 P-m. Waggoners Walk. , jiUm w/te, uc M - nf i V7TP Stop, Listen. 730 In Town fas 

1238 Pete Murray's Open House (Si 33 t fo- s «9m M»B VHir llJ3 830 AU Thar Jazz. VUU 

tuclndlng 2.45 Sports Desk- 2J0 David , TModimn Wave only Late Night London. 12.00 As Radio 2. 

Hamilton ($1 incmdlng 245 and 3.15 635 Am. News. 637 Farming Today. 1235 Ant. Question Time. 130-ChK As 

Sports Desk. <38 Waggoners' Walk. 4.05 *-35 Up U the Root. 632 tVHFI Reglnnal Radio C. 

Sports Desk. 437 John Dunn rSi lndud- News. 738 News. 738 Today. 735 Up T _ . 72 

log 535 Sports Desk. 6^5 Sports Desk. 10 the Hour (continued). 732 iVHFl LX)IlUOll BrOaOCaStlllg: 

732 Folk IS (Si. 730 On the Third Beat Regional News. 8.08 News. *30 Today. 261m find 97J VHF 

fSi. *32 Hnbert Gregg at The London Yesterday in Parliament- 130 Ntru-A M _, n _ „ 

Theatre. 932 Among Your Souvenirs (Si. *■*» Tuesday Call. 1830 Newt 10.05 5 ~ w a - m ' Mo rning Music. 630 Alt: 

935 Sports Desk. 1832 Three In a Row. On Location. 1830 Daily Service. IMS ’ p* 1 ""' rcvtewA 

7830 It's a Funny Business tan Sandy Morning Story. 1130 News. U-8S Thirty- .Bty a Hayea. 138 p.m. 

Powell. ‘,1132 Brian Matthew introduces Mtautc Theatre. 1135 Profilc- LlW Neu^ ^ nh*j E 2 

Round Mldnlpm including 1230 News. Y « MiYMR. U^Desert - OO^ ^.^Mtcr with 1ml 

■SW32 ui. News Summary. Island Da«. 0235 Weather, prosxamnie “ 2.W330 ami. 

d a nrr» l 4IUn> Qi.,m X- VWP ne,vs VHF London and se» J»*ni-E*trii with Adrian Scott. 

RADIO 3 -4«m, Stereo* VHF Now*. 1.00 The World at One. Panifal Rarjin 

ttJ5 ajn. Weather. 7.00 News. 7.05 130 The Ardicre. 1.45 Woman's Horn- r 
Overture iS).--*38 News. 8.05 Morning Including 230^232 News. 235 Llsien VI I h IStin inti S5.8 VHF 

Concert iS|. HM News. 135 This W e ek's Mother. 338 News. 338-Qocsilons to tbe 630 am. Graham Dene's Brcakrasi 
Com noser: Nloliaon isi. 1Q,00 Holiday Prime Minister ‘live - from the House Shaw (Si. 9.00 Michael Aspcl (Si. 12.80 
Special i S»: 1838 Pjjinsoog and the of Cornmom, 335 Money Bax- Noun. Dave Cash c Si. 180 p.m. Roger! Scon 

Rise of Eiirouean 1 Miwic iS>. 1138 Cello 6.85 Gardeners' Question Timn Hertford- (S>. 730 London Today (Si. 730 Adrian 
7n^nal ifii. 1135 Brahms Songs iSi. shire. 435 Story Time. 530 PM Reports. Lovr's Open Line iS». 4.00 Your Mother 
12.15 o m. Midday Concert, part 1: Haydn. 5.40 Serendipity. 1535 Weal her. pro- Wonldn't Like It with Nirtcy Horne «S*. 
imldt. LOO News. 1.05 The Art9 Bramme news tVHFi Regional News. 6.00 1130 Tons Hyatt'? t-nlr Show 'Si. 2.H 
rldwide. 138 .Midday Concert, part 2:, New*. 630 Just a Minute (Si. 730 News. Mt. ImosM JoEutsoa'6 Night Flight tS). 




AUtK Y. 8 36 3788- Party 1 « 

trlaST Mon-. 1 Tubs?" ySST X . rr., 

ZjS*T?i SusSBS' T^eI'V^CO^ * 

* lONEL BARTS „ • 

MIBACULOUS MUSICAL. - ' Fin.. 

with ROY HUDD wg JOAtJ TU 
•• CONSIDER T OURSELF LUCKY 
ABLE TO SEE IT AGAIN. Dallv Mirror. 


ALOWYCH. 836 £404. Into- S3B 5. 
ROYAL SHAKESPEARE ^° MP * NY 
roaertolre. Openlno perfs- « 

London reason. No ped ; TOnr 

Tomor. 7.30 red. prigi Pg" 1 *"* 

V isold Qifti. With: HEMRJ J 1 
miurs.J. HENRY VI Part 2 tSa 


Peter Nichols' PRIVATES 


Part, 


DELILAH. N.B. NIOhtly at 8 P-m. 
Sufi s. Wo show Fr/i. 


AMBASSADORS. CC 836 1171. 

Mats. Toes. 3.0. Sat. 53. 
A Rock Rrrye. ■ 

LET THE GOOD STONES , R °LL 
•' Louis Selwvn 9 *ra*M briUiaotlv as N 
Jatwer." O. Te*. 


\W.LO. 01-437 2663- EranlPBS | 
M.tA .Tk^OO^L^QO an . 

SHUT YOUR EYES AND 
THINK OF ENGLAND 
"WICKEDLY FUNNY.” Tlmos. 


"to 2132 

DIRTY UNEN 

" Hilarious . - see it. Sowdiv Tima. 

Monday to Thurtdav B.30. Friday and 
Saturday at 730 and 9.1S. 


ASTORIA THEATRE. Chari np Cro ss Ro ad 
01-734 4291. Nearest Tube: Tortentiarr 
Court Road. „ Mon--Thurt- 8.00 P-m. 
Friday and SatanJav ^630 and 835. 

Instant Credit Card Reserrations. Eal 
our hilly-licensed Restaurant or 8i 
Bar lunchtime and before or after si 

— bookable In advance. „ 
BEST MUSICAL OF THE YEAR 
EVENING STANDARD AWARD 


CAMBRIDGE. 836 HH. Mob. to Thor. 
8.0. Fri.. SaL at s.45 and 8-30. 

1P1 TOMBI . , 

Evening Black African Musical 
“ Finest danclno In London. Sheer 

dynamism. D. Mall- 
THIRD GREAT YEAR 
Dinner A Top- or* * seat 88,25 Inc 


COMEDY. 01-930 2S78. 

Evening 83. Thurs. 3.0. SaL S.30, 8.30. 

MOIRA LISTER TONY BRITTON 
Margaret COURTENAY. Dennot : WALSH 
THE HIT COMEDY THRILLER 
MURDER AMONG FRIENDS 
- Blackmail, armed robbery, double bluff 
and murder." Times. " A good deal or 
hin.” Evening News. 


CRITERION. CC. 01-930 3216. 
Evenings B. Sats. 530. 8-30. Tburs. 3.0. 
LESLIE PHILLIPS 

" Impeccable . . . a mite r." Sun. Times. 

in SEXTET 
"HILARIOUSLY FUNNY.” N. of World. 


DRURY LANE. CC. 01-836 8108. Every 
Night 830. Matinee Wed. and Sat. 3.00. 
A CHORUS LINE 

'* A rare, devastating, joyous, astonishing 
stunner." Sunday Times. 


DUCHESS. 836 8243. Mon. to Thurs. 
EvBS. 830. Fra.. SaL 6.15 and 9.00. 
OH ! CALCUTTA ! 

" The Nudity is stunning." Dally Tel. 
8 th SENSATIONAL YEAR 


DUKE OF YORK’S. 01-836 5122. 

Evgs. 8.00. Mac. Wed. and Sat. at 3.00. 

JOHN GIELGUD 
In Julian Mitchell's 
HALF-LIFE 

4 NATIONAL THEATRE PRODUCTION 
*■ Brilliantly witty ... no one should 
miss It." Harold Hobson (Drama). Instant 
credit card reservations Dinner and loo 
orice seat £7.00. 


FORTUNE. 836 2238. Evg*. 0. Thun 
Sat. S.0O - and 8.00. 

Muriel Pavlow as MISS MARPLE In 
MURDER AT THE VICARAGE 
Third Great Yoar. 


GARRICK THEATRE. 01-836 4501. 

Ergs- 8.0. Wed. Mat. 3.0. Sat. 5 IS. B.30. 
JILL MARTIN. JULIA SUTTON. 
ERIC FLYNN and ROBIN RAY 
in the 

_ - B RILLIANT MUSICAL 
ENTERTAINMENT." People. 

SIDE BY SIDE BY SONDHEIM 
" GO TWICE." S. Morley. Punch. 
"GO THREE TIMES." C- Barnes. NYT. 


GLOBE THEATRE. 01-437 1592. 

Opens Wed. 7 0. Subs. evgs. 8.1 S 
Mats. Wed. 33. Sat. 6 and 8.40. 
PAUL EDDINGTON. JULIA MCKENZIE. 
BENJAMIN WH1TROW In 
ALAN AYCKBOURN'S New Comedy 
TEN TIMES TABLE 


GREENWICH THEATRE. 01-858 7755. 
Evenings 7.30. Mats. Sats. 2.30 don 
JUAN. A Comedy bv Modern. "I recom- 
mend it warmly." Fin. Times. 


HAYMARKET. 01-930 9832- Evgs 8.00, 
Mae. weds. 2 . 30 . Sets. 4.30 and a 00 , 
INGRID BERGMAN 
WENDY HILLER 
DEREK DORIS FRANCIS 
GODFREY HARE CUKA 

in 

WATERS OF THE MOON 
" Ingrid Bergman makes rite stage 
radiate— unassailable charisma. " Dly, 
Mall. '* Wendy Hqirr is superb." Sun. 
Mirror. 


'*•" ' THEATRES 

HER MAJESTY’S- CC. 01-330 6606. 

TRAVELLING MUSIC SHOW 
. • With Derek Grlhrttis : 

| Directed by BURT SHEVELOVE 

“BUBBLING BRUCE'S^^ONE MAN 

BAND." E. News. "BRUCE FORSYTH 
HE IS INEXHAUSTIBLE. THE- SHOW IS 
T A KIND OE FORSYTHE SAGA." D. Exp. 

" XING’S ROAD THEATRE. 352v 7488. 
B Mon. to Thur. 9.0. Fri-SaL 730; 9-30. 
THE ROCKY HORROR SHOW 

NOW IN ITS Sth ROCKING, YEAR 
THE GREAT ROCK 'N* - ROLL MUSICAL 

V PALLADIUM. CC 01-437 7373, 
n .FROM MAY 2S to AUG. 19 

THE TWO RONNIES 

BOOK WITH EASE ON THE NEW 
EXCLUSIVE TWO RONNIES' -HOTLINE 
• ' 01-437 20SS. 

LYRIC THEATRE. CC. 01-437 3686. Eva. 
8. mu. Thun. 3. Sacs, s.a ml Uff. 
JOAN PLOWRIGHT ' 

COLIN BLAKfLY •- 
an PATRICIA HAYES Ml 
FILUMENA 
by Eduardo Flllppa . 

Directed bv FRANCO ZEFFIRELLI 
"TOTAL TRIUMPH." D. Mirror. 

" AN EVENT TO TREASURE." D. Mirror. 
" may it Fill he lyric for a 
hundred YEARS." Sunday'. .Times. • 

MAY PAIR. CC 629 soifi. 

_ ' Mon. tn Fri. 8.0. Sat. S.30 and 8.45. 
.Gordon chatcr "Briiriam." ln. m 
THE ELOCUTION OF 

REN JfLM IN. i FRANKLIN. . T 

bv Steve J. Sonars j 

"•L'BXwSNot*te : filiWiflercely eloquent 
-Play." Gdn. “HUarJous/' ESW. VWWtedly.. 
amusing." t. News. "Snri (bind Ing." Mis. 

MEP MAID. 24 a 765B. Rertaurairt 248 
2835. Torn Contl-Jane Asner In 
WHOSE LIFE IS rr ANYWAY? 

THE: NEW SMASH HIT ACCLAIMED 

BY EVERY CRITIC 

rvg*. S.1S. Fri. and Sat. 5.15. UnVl 
Aoril 15. Re-opens April 24. 

ALEC McCOWEN’S ST. MARK’S GOSPEL 
April 16-23 and every Sun. until Mav 
14. Sun. 7 Jh. eves. 8.15 (ex April. .99 
at 7.00) • 

NATIONAL THEATRE. ' 928 2252 

OLIVIER (open stage): To n't and Tomor. 

7 JO THE CHERRY ORCHARD by Cbak- 
hov tra« Michael Frayn. 

•LYTTELTON (proscenium' stage): Fri 7.«S 
Sat 3 and 7.4S (red pr nravs) PLENTY 
hv- DavM Hare. ' 

COTTE5LOE (small audHorluml: Tomor 3 
and B LARK RISE written by Keith Otw- 
tiurst from nor* Thompson's book (prom 

Many’ excellent cheap seats all 3 theatres 
day of peri. Car park. Restaurant 928 
2033. Credit card bkgs.,928 3052. 

OLD V»C ■ 928 7616. 

The Old Vic Youth Theatre. April 10-15. 
TV,* Caucasian Chalk Circle, the Wlmrees- 

Fr5»si>cet P 3t* < Thc Old Vie- New Season 
Stans April 20 with Twemh Night and 
Saint Joan. Phone box office Ar details. 

OPEN SPACE. 01-387 6969. Evgs.. 82). 

Triple Action*. ORPHEUS. 

PALACE^ Credit Cards. 01-437 6834. 
Mon.-Thnrs. 8.0. Fri.. SaL CO and 8-40. 

. JESUS CHRIST SUPERSTAR 

PALLADIUM.' . . .... 01-437 7373. 

April 13 4 14 at 8.0. April 13 at 6.1 S 

A 8.45. 4 PERFS ONLY. • . 

THE SUPREME* 1 MARY WILSON 
Karen Jackson & Kaanjn RuUnd 

Box OAce open. BOOK Now. 

PHOENIX. 91-S36 8611. 'fiiprU 13. 
TIM BROOK E-TAYLOR 
. GRAEME GARDEN 

THE UNVARNISHED TRUTH 

A New Comedy Or /force Rvton. 

PICCADILLY. -437 4505. -Credit card biegs. 
836 107112 '9 a.m.-6 p.m. Evgs. 8-Sau. 
4.45 and 8.15. Wed. Mat. 3.00. 

BEST COMEDY OF THE ^EAJ* 

Eyg, Standard Award and SWET Award 

Royal- Shakespeare Company la 
PRIVATES ON PARADE 
■ by Peter Nlaiols 
. (Not Suitable tor Children) 

" HUGELEY ENTERTAINING 
EXTRAVAGANZA^. S. Tjmn. 

RSC also at the Aldwyeb Theatre. 

PRINCE EDWARD. CC. (Formerly Caslno.i 
01-437 6877. Previews, from June 12. 
Opening June 21. EVITA.. 

PRINCE OF WALES. CC 01-930 8581. 
Monday to Friday. at 8 pan. 

^ „ s ^sa s '^ E pr«s&jj! > ”- 

.1 LOVE r> MY ,, WlPe 

R/CMARC? MOUHSALZ 
and from April 10 
'ROBIN ASKWlTH . 

tor “ Confession i of film fans! _ 
CREDIT -CARD BOOKINGS 930 0846 

QUEEN'S THEATRE. CC 01-734 1166. 
Evenings 8, 0 c 

BEST ACTOR OF THE THAR 

Variety. Oub of ca Award 
•THE OLD COUNTRY. • 

A New Flay by ALAN BENNETT 

Plays and Players London critics award. 

RAYMOND REVUEBAR. CC 01-734 1503 

At 7 p.m.. 9 p.m- 11 P.rn. 'Open SunaJ. 
PAUL RAYMOND presents 

THE FESTIVAL OF 

EROTICA 

Fully Air Conditioned. You mav 
drrnk and smoke lit the autldtortum. 

round >>iBurun *?° 

pr^te .^Londjjj^remtere of ; 

R ° y "- fiffTte s « ,3£° ’ T “ 

CLASS ENEMY 

bv Nfeoi wmiama • 

Stunning new Play.".. F._ Times. M«as 
with life and force" Gdn. See also 
Theatre Upstairs. 

ROYALTY.' Credit Cards. 01-409 8004 

M on day-Tti urjdav Evenings - 8.00. Friday 
5.30 and BAS. Saturdays 3.0 and 8.00 
London » critics vote 

SILLY DANIELS In 

BUBBLING BROWN SUGAR 

Best MnsKnf or 1977 

Bookings Ateepted. - Ma)W Credit. eardK 

SHAFTBURY- ' 836 8588 ! 

Bros, at BJK). Mats. Thuriu SaL 3.00 
John Reardonjnd ^lozn Oianar In 

THo leppadarv mesial ' 

■* A SMASH HIT THIS MU5ICAL HA5 
EVERYTHING." 5. Mirror. 


SAVOY 01-856 8688 

Night* *» £00. Ma L WHL 2 JO 
. . p 6.Q0 Brq 8,00 
PATRICK- CARGILL Jtro TONY AIVHOLT 
• ■ in 

SLEUTH ‘ 

T; ^SjrsJKISr - 

" Seeing the play again Is In ' fart art 
utter end total low ” Ruhr. 

'• It will -run. amt run again.". Sun. Tri. 
Evenings £1 TO fc A. Mart, 6-1 W 63- 


THEATRES 

SHAW THEATRE.' • 01-383 ' 

chicken soup with earu ' 
fair Arnold Wesker j : 
Opens Tonlgbt 7J». Sub. Evg*. 


STRAND. 01^836.2660. Tveahaa ■ 
Mil Thurs. 3 . do. sats. 5 jo w ■ 
NO SEX PLEASE — 
WE’RE BRITISH - 
THE WORLITS GREATEST , 
LAUGHTER MAKER ' 


ST. MARTIfTS. CC. 838 1443. En. ' . 
.. Mat. Tues. 2A5. Satt. 9 aodr 
AGATHA CHRISTIE'S 1 
THE- MOUSETRAP 
■WORLD'S LONGEST- EVER . M 
26th YEAR. 


TALK OF -THE TOWN. CC. Tsii . 
BUHL UtnlDs, Dancing. 9^0 Super - 
RAZZLE DA221.E 

and at 11 |Lm. 

. . MADELEINE BELL ' - ' 


THEATRE UPSTAIRS. 


738 


Tomor. 6 Wed. at 7. Subs. eyes. 

SHARED EXPERIENCE 
In BLEAK HOUSE- 
. by Charles Dickens 
(In 4 parts. .In Rapwtolrg): . 


VAUDEVILLE 836 9888. CC. Ergs. 

Mat. Tues 2.45. SaL 5 and l 
Dinah SHERIDAN. Dulcl* GM 1 

aasraftsw iawurr 

“Re-enter Aoatiu with, another >» 
dunnit hit. Agatha .Chrfctle a a 

S e Watt EM y«t again Kith a 
her Beldlshly kngenltjin i 
mysteries." Fella .Barker, Evening . . 


{ s 


VICTORIA JFALk£k- '_. 

STRATFORD JOHNS . . 
■ SHEILA HANCOCK 
ANNIE 

Prers. from April 25. Opens fir 


SSiS'.Sff:! J teiVwtf . ’TW m 
A WHORE In Bopertoke. AU reals 


WHITEHALL. CTJS - 

Evgs. B.30. Fri. and Sat- 
Paul Raymond pre»«a «»S«is 
Sex Revue oirae CenmrY .. 

• ' DEEP THROAT ■ 

Dim to overwhelming powlc d -. 
season extended. 


WINDMILL THEATRE. CC. 437 - 

Twice Nightly .8.00 «}d 10*g : 

OPEN SUNDAYS 6.00 S^OO. 

PAUL RAYMOND presents - 


THE EROTIC 


_ 

MODERN. ERA 


OF 


-Takes t* unprecedented I imiy * 

P ^S b ^.y°driS r .^&i 

SDOftorium- 


WYNDHAM’S. 836 3MB- 
b^ 

enormously 


Cmort . 

n*-. 


Mon .-Thurs. 


w 

VERY FUNNY? ■ 

Mary O' Mailoy s 

ONCE A CATHOLIC 
' Supreme COfhW g gRgg. —* '** 


YOUNG VIC (near 
Tonight 7.45 Royal 
In MACBETH. . 
returns ott do or- 


Old. W #M 
os 


CINEMAS 


iL 


It 1M 12 TASKS OF 
Wk, 6 Sunj 2.30. 5- SO. 8; 

at the Gooorir* gi*l < 

Sun^ 2.00. S.10. 8.10- 


l> 


2r-'p i 

t‘ul< J 


C'MDEN PLAZA 
Tubel. 485 2443. 
PROBABLY (*>. 4A5 
end April Sth. 




CLASSIC 1, LJ *. 4. 

i?W 


YOU LIGHT UP MY upa 

Ar°Bw«rimrF _ 1900 Part 2 
2JW. 5 JO. 4LT5. 


HI DIN C ' - 
5JJO. Sfl • 
SM,. 
tAL 


t sgggi. i a3:5^~’£ , ‘t 

UohorTi”- Sunday Exuress. Prow- a* 

(not SunJ. 3-S5. WD- ’ 


LEICESTER SOUARE 

^OLIVER REED. 6IISAN GEORGE *,V 


o\. 


iDEOlsr. Havmarket. 

jane Fonda. Vanes** RWnrawjJ V,, 

Zlnnemann ««in JUUA (AJ. 

tS§: 


gU 1 

teicrwr f 

CLOSE ENCOUNTEM ^ 

ssavaagst 

nroo- 


incON, Merbte Arch- _ .IZn^iW? 
star Wars iul 

4.3S. 7JS0. Afl.ieMS bk«e 
perf. Wks. _____ 


5*t>. Ports. Oir. 11JS.. : 

8.40. Late »hw» Prt. * ; 

Bkbie. UeTd ■» — . 


scene a. leioiw ' 



\y. 


TUOIO 1. 2." *• *• ' ° crttpd „ 

bjsr sas , ■ 

12 AS. 2.45. SaS. 8JS- 

i 

4 Wrutdu Allen. *“ s5 « 9 . 

LOVg * DP ATH f*J„ 1 M. 

Law 8hov*«U> 


y 


& 




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% 


- - 1 V ’V’- : '^ Y> ‘ .•'■••• ■•: ■ • " • . 

Fine ':■ .; .-■-* ‘V^; r' v ■" 


tt *ta 



15 


fti? 




'ik 


patrons wanted 




'■ ■ ■■' ■■ ,v by WILLIAM PACKER ■ 

^ the vcrisi? la the visual -arts days of part-time teaching is 


‘“-SXJv 


that a P 1 £Sd 4 S E p^ no S^MSSEk& between S^/r ” £^3 

exl^d^the-^ra*™^:, jgBF j ” wga tte nte tSey Un£u udjfir'SSS is tie w m™ * e “ s modest enS 


JjjJf'CESTh 

iSS.'S?' 



•*-ssaf% 


HH&* 


'•^o — Ti 



vc : d in £■* «**{ 

«*=* *- *-#4 

a:«i v .•., 

..— . '*-•2 aa -f.. 

““■ =a»5 •■>. ii 



A!p- 


** i“ Vf 



prac- 

face and achievement" Pf'Oiose 
arts, but in. the manner of .their, 
support and^ patronage* . Artists’ 
have- always .lived, if- not dan- 
gerously, -"tff least ■ precarioosly, 
their livelihood ■ hanging noon the 
vagaries' of taste,: historical acci- 
dent and the arbitrary shifts of 
reputation. The -problem -for the 
serious/artist was ever to arbi- 
trate, between the - demands of Bis 
personal vision and integrity and 
those of the market; and the list 
of notable; casualties - of .the . 
daemma may begin with -Rem- 
brandt, Courbet -and Van. Gogh; 
and- ‘Jbeoriardo,. ■’ -Michelangelo 
and Veronese’ ; all ' had ihelr- 
momenta with . Dukes, . Popes and - 
Inquisition. It is easy: far our own 
time- to condemn the poor artist- 
for the iwiiful- obscurity pf ]bls. - 
work; but .to ask him to pander, 
to .the ignorant and. generally low 1 
visual 1 sensibility of our society, 
in the name. of relevance, access!-' 
bility ana social resptmsiblHty, is ■ 
no answer. If we ; want Art, and 
Modern .Art -after' all. is the due 
we owe to . the future for the 
Art ox the -past that we 
now enjoy, we -must , trust the 
artist and give him grace to do 
what he sees as right It is the 
old argument? judgment choice,' 
discrimination and criticism are ; 
our privilege;': but not prescrtp-r 
tian.. 



money in 1076 amounting to 
£10,000, with a first prize- of 
£4.000. Last year Tolly Cobbcld 
of Ipswich instituted its own 
biennial, an open exhibition held 
in association with Eastern Arts 
that put up over £5,000 in prizes, 
and £1,500 in purchase money; 
and this year the same two 
parties have set up a competition 
for three photographic commis- 
sions, each worth £1,000. And 
Wiasor and Newton has estab- 
lished an award for art students 
in their final year, with regional 
heats and the winners moving on 
to the final in London. Crown 
Wallcoverings, too, has sponsored 
a competition for students, the 
£1,500 in prizes being adjudicated 
by the Contemporary Art Society, 
which was also given £6,000 to 
spend on the company’s behalf. 
Those purchases, with the prize- 
winning works and the best of 
the submission, are on show at 
Beed House in Piccadilly until 
ApriI6. 

Lately I was personally in- 
volved in a similar project, being 
asked by Elf Oil to be one of the 
judges of its competition for 
artists under 30 from the north 
west of England. One thousand 
pounds of purchase money was 


Shaw 


Chicken Soup with Barley 

by B . A . YOUNG. 



Martin Friend, Adrienne Post* and Barbara Young 


Sarah Kahn and Harry Kahn, ing part of it whether in the thony Cornish, is a good one, 
the heads of the family whose exciting, hopeful days in 1086, inhabited by a company easy to 

fortunes Arnold Wesker follows when the revolution seems at believe in. Perhaps Frank Baker 
fortunes Arnold Wesker follows hand anfl ^ terrible sound of looks a good deal too old to be 


1/vuuu* w uiuucy «•<« : h :_ TVi . — . t ri _f pat in Hand ana me remoie sound oi iuoks a gooa aeat wo oia ia ae 

spent on works to hang in the *“ “if m w«iIEidi? militant politics grates through a 16-year-old schoolboy in Act 

company s new offices in the door, or 20 years later when Two (though it’s fascinating to 

Altrincham; and they will be ihi § ’ , d2J re 5vSde not earine despair is kept at bay by Sarah’s watch him in the mannerisms 

Si ISIh sav/i tn live and^of strength, her naive creed sustain- that, when Roots comes next 

(as oaran saysj to live ana not . M oc , - Hnul rtf mnnth «•« eh->ll CM hv 


theatres 

TMCATItl 

HICAtM soup W|TH S ||S; 

» T5 V- 3 ^ 

Sln - bfc 


ID 3:-S-d 

' "I*/!* "Wtf® 

LausMTSj^ 


a ^* i -' i, Css?S T .*s ai 

h TM£ MOllSETBAf 


oa.= i 


V. ; k*_towk. :c :u , 
■=* £:; i 

MAClLE'Nt'ltLl. 


Sara Rossbcrg’s prizewinning entry in the. Interior Motives competition sponsored by Crown 
• Wallcoverings and. the. O>o temporary Art Society 

pnppljty- • jriBTu aitr-‘fir r \ '■'/? ’• - ^ 

CoUeees^&miiiwe 'td produce paint dreadfally .erpeosive, by well-meaning egalitarian tu re, fittings and incidental 
graduat&rm aiit and nraortwid stodio-riioapmeiit often orthodoxy: t her sums involved expenditure, to be written off 

design - • of - remarkably high unthinkably so; yet, am a zing ly, are necessarily large when taken against tax. I read the other day 
quality. . But they are given tbe work goes on, and on incomes from taxable income, and a that £200 a week was not un- 
little -scope and less honour often well below the. notional wealth tax, should it come, must reasonable a figure for flowers 
here, and: our young' designers pUmsoll line, with tax inspectors discourage the early purchase of and house plants alone. Were 
are forced -too often to look for determined still to mulct any the work of the young and only 10 companies to devote such 
oppqrtunitibS and success in fa*- awards and grants, that the Arts promising, penalising discrimina- money to the purchase of works 
dustry - abroad^ our aspiring Council and the Regional Arts tion and the good eye. The fact of art, they would make an 
artists," on '-tlte,' other hand, axe Associations ;are.-able to dis- remains that there are pitifully enormous difference, something 
expected 1 .; to 5- -. leach, that odd burse. . . fev major English patrons of to the tune of £100.000 a year. 

English jexi^dient whereby . the Support ia necessary, and to modem English Art. Good work is already being 

subsidy removes: the artist firom- adtpe - extent '^forthcoming; the There are our national colleo- done by imaginative and enter- 
the very.-, practice --it- should ‘ institutions do Weiy'bqst with the tions of course, but their funds prising sponsors, but usually in 
sustain^ A- day .or two. a week of funds^ atvaflaHe^-Jnid / grants, are limited and their walU finite: the field of competitions and 
part-time- teaching can be stimu- fellowships and tfwards increase which leaves us with industry prizes, nothing on the scale of the 
lating and rewarding, while- the in number year: by year But and the great commercial enter- Peter Stuyvesant Foundation's 
presence within the colleges of nothing- is better for the. artist prises. Here the .situation could bunt of collecting in the ’60s: 


s .._ £• 


SMAHEo unificMa 
flZAK M3uU 

= • 


s iirn a, stun uu wuger piiiiga m Lwirbvui huiic ™ uuuuicu *uiw tuvuw 

a living wage; jan£ four cr five private - patron; Ij.osfeyer,- is being pounds will often, secure a major pockets every two years, the prize 


y«u.t. ?;s css* 

'•*' : k«*_ j j- i 

r a 2 Ml- LAN 2. , i 3|. 


AlsnostFree 


' : - 


- V.MV>?F 1.: .i-f. T 

ft MCRQCR -.J ftftftMKE 

f. AOft-Ma. :-s;r • 

j-s-f* 

*" : £ „ a. 

• r. i -- ii» l: 



tv 


-• iir?* 


.. •- v ■ rr. V - 

• -’"I'. j i t *. ' >' c-n/- a'. . 'gf ~ 

A- -Jewish, family c -lo Stoker who has-made igoow^iAme 


eft rft^ftC!. 

s.rR«:fo«c jchw 

SHllLft HftMCaa 
ftNftSI 

ft v_; :t. , 

1- ; .1 ■ J t ' 






Covered 1 '5h ; tuorfd; 'he' 
from a lignt-wing potit 
ing whichhas* sevm^y 
pacifist ;f'fdeaia v andk-h^ AK ‘ i ” fct 
dignity. He-.j^presenta -j 
element of me.Jarish . 
to bei naxdcked: aw 
If Fch'eletfe: TVandor’s sch 
ally- 'eonyentiohal 


rcome a pair- 


iivianerica 

IMS oh.^at hijacked 

fane.: ‘ ThcJ!te^E6ri6tit' are’ 
.Vdisaffecfed _ Europeans 
pr - fractrate<£S 1 alestinian&, but 


of 


an. brothers jfro- 
the imminent 
their pregnant 


ter. 


lal 


yior 


play. -Also .*.boi Ijng .tsT# 
difference, between 
pa’tterimittef and 
daughter-.- . Norm^- wl 
“married.. out" .anduW* 
ten-year-ojd. son,. * 
atheist with, Inft. j _ 

wtiWi 




revelation proves too 
r -the^oung Israeli to 
r some, reason, and he, 
bfanself-ont of a catatonic 
Up by* taking up Max’s cut- 
4&ssQrs and removing bis 
: The- police are -at the door 
^ questions about tbe meet- 
1, 3,0^, -Norma's plea for a con- 
gstractlve political reaction on 
his part fajls on stony ground. 
Nicholas Barter's production 
contains" a. .fine blustery pe& 


enduring - - bK --num- 1, - ^ — .- — . 

Attitudes ’ ctftber-’ than : 'fife as. foimance by Jack Lynn as the 
are investigated' in a^e^aStly : t^chy - paterfamilias while tbe 
sn perftci -Tnanner^'^tiwi^h afters-ATlan Corduuner. NeQ- 

Miss. Wandor ji .npf: as prodigal ■ Gibson, Lesley Joseph and Bar: 
with successful, comic banter, as bars. Lott— ^do- well . to keep 
she things^ going between the 
shade.-' stronger moments:. . . 

house: ' .- • MICHAEL COVENEY 


»:jv7 , , T - . 



*ip» 
' iK 


■ The ; " Bfc^^C^^Forid.-:- nf . Symphony was on hand to purr 
Michel * iegraa^Pr’j.'lsT, Efaoco^ vey. souvenirs ■ from films like, 


_ w j . riamm*- vcy- ■ num ******* ***.*., 

American, Ahd^®^ s^ble, :aB- Tee Station Zebra and The Three 
expensive ‘ and iak^jresiB^aitb to : Musketeers — forgettable ana. 
immigration .:/&■* -S^tzeriUmja. .heavily . over-scored: Legrand’s 
Two dozen -yearii^Lge H ^L Leg^apd. Inventiveness / has . nbt kept 
arrarrted "a : medley pace with his success— and tp 

called ’“'I I with-' assi st the -composer and the ex^ 

super-professiopklr - tesMaoefuF^ ^ detent Elaine Delmar in repro- 
tuM-’anS vtAnc'-'flim -Mntxatis'dutinj? various versions of Tbe 


various versions of Tne 
la Legrand: Sang. - 
y/ TI^m* waa Also Ivxy Gitlis, a 
Mjotr superbly Individual violinist who 
has-been . unheard, in Britam~tO r' 
^i* fhr-tbD many- years. For him, 
-Xegramd .has written a new Vio-: 
„ :finCbBcerto in three 'continuous 
in the Albert, Han ojrjsmn*y Jhbvements: * first rhapsodic and 
night It swa'rxrxed'-wiih -entfewir .^ssonaixt. wfah violent orchestral 
asS- ±riu^s. J -'- ‘TEte - LmiaS^ Jiuuetuation, then urodally rumi- 
astre .^ny-^TiarMiH With 

v i- 1 dVd^. Wt»vg for Gitlis to 


ness and ,<!h^^V.fimj con 
followed;' and .yfauag^ 1 

Boulanger / t 4 «ipa - 
acq uired A fixe^^high^y; 
able manner! -SU m 
piped - 7thr0ufih; t afa-fanfi. . 
world - over, ' and when 
V Musi rail Woridf* 'topadi® 
in the qbfii 




■ d- ■'.'rtt. 

ww 


« 





J. ; .v. 






. ... . 

Rue Wirfes . and ’Bargalns . 
are operrali day.'fr April- - 

.(fmM v v /; 

ERlNG'your'car and’load " 
upwith. decent whiM-at - " *; 
decent prices^- ; ' }" "'J /V.' ’ ; 

qGjfcjjjfe,' hurgundieS, U 
HOCES^ndMGSBI^' 


Cash/Cheque twily^-' . ' 

iiAyroNjs 

, - : Cellar?. 

:? 2ffj ; lfidland Rba^r.N.WJ 
-Alongside 

• : $ fVp ancras Station • 

. 01-387 8235 


1UTIJI1L <tUU QlinUJ 

jazfthkclced! .breaks for Gitlis. : to. 
GrfippellHse im It struck me as 
.probably too rebarb ative for tbel 
■.pop. milieu, and - too stiff and. un- 
.derdeveldpCd for a .straight «m- 
Ffiert,.’ AH the same. Legrand 
f taken affectionate care to match 
l-the' - .Gifiis' style . and -even the 
<Utlis : personality, with suitable 

.material: the .spcciaf tautness 
and. pungency of his plaj'ing are 
neatly .catered for,. though only 
oh ‘riie scale of hors d’oeuvres. _ 
The. rest consisted of the 
wen-ftSfed Tontines. The mar- 
riage “bf- .e»ri« deux : guerret 
Freheh pop and- American big 
bind beat- has produced plenty 
of offspring, which resemble 
each ‘ other . so stronily that 
Leerand sensibly trotted outoniy 
a veir-fefr ’bf the famous tunes 
Itfor .this occasion. They are 
memorable tunes.' and those we 
.beffld-jvere enough to. recall ail 
the bfters^' But; does Le^® n “ 
still do Iris own Instrumentation ? 
The - sound ; has : become stan- 
dardised -at eariy-W’s Broadwav. 
vrith- Ifte -ttaSHM ■ addition of 
amplified piano treble. W JJJJ* 
i that Legrand’s earlv 'aTJ-sinsina 
jlm. TJmbTelZas of Cherbourg. Is 
i about, to have a Broadwav tnrns- 
moRrifi cation : he, ana Miss 
Delmar -belted out the duet fr . om 
If in" the new .American, version, 
waving their. ;anns : . passionately 
and clutching their micrcmhones 
r to tbelr te^th. Grand opera has 

jjotiring sillier to show. 

DAVID MURRAY 


Festival Hall 


Perlman and 





Shown, with the best of the sub- 
mission. at the Royal Exchange 
in Manchester during July. This 
is ElFs first venture into the 
field of art sponsorship, one that 
I am sure will be followed up. 

This catalogue is not exhaus- 
tive: Industrial Sponsors for 
example, with which I am also 
connected, has made it its job 
for some years past to persuade 
businesses to look" at Art and 
sfiow it on their own ground; and 
exhibitions have been held 
within the last year or so at 
Finance for Industry. Com- 
mercial Union, the Design 
Centre and at the new Astoria 
Theatre. Next month the Royal 
Academy opens its Business Art 
Galleries, about wbich more 
another time. 

.But I shall finish with an 
example of sponsorship that is 
as imaginative as it is 
unexpected, for the British 
Museum is not naturally 
associated with modem painting. 
Now, however, it is to buy paint- 
ings over the next two or three 
years through its advertising 
budget by the excellent ploy of 
commissioning from certain 
artists works that may be 
adapted to use as posters. Each 
artist is to be asked to choo c e 
one of tbe major departments of 
the Museum as his theme, some 
12 in all, the choice natural’* 
□arrowing as the scheme runs 
its course. Tbe first artist, 
Lawrence Preece. with the' Whole 
place at his feet, chose the 
Egyptian - Galleries: and his 
remarkable .painting is due to 
grace our .walls and buses an; 
day now.. . _l . s . 


Sir Z h». «g her as once a bowl of month, we shall see copied by 

tried all* hi?life to nae him into chidten S0U P with barle y 5US ’ Beatie Bryant); in the final act, 

tained her sick grL his flamboyant ambitions dis- 

ovex^the* sna^nf the The musical speech of the carded, he moved me more with 

3E , rnn^wwi first - generation - English East bis simple distress than with bis 

fit ta handled Situ great extemporised poetry .ten years 


Aid for community arts 


hi? skin, its intrinsic humour never before. As his sister Ada. 

self-conscious or intrusive. Adrienne Posta is truer to life 
though I did feel that some of as the gamine activist in her 
the comrades were using vowel teens than later as the im- 
Jfiiw 685 and - a * devote<i sounds that would have seemed mensely smart political drop-out 

^ a hit posh to their mates. complaining of her fellow- 

o? fte sI°r!?Dg C °v° hS'' S ^er ^ P r0, >“ rti<,n - UBder An- workers’ liprtick. 

‘children. They are splendidly 
played in their different ways by 
Barbara Young, erect, dicta- 
torial certain of the socially. 

therapeutic value of cups of tea,' . v council is to give a programme has been to agree to 

afttt M wto B afao2f’ of 1 P h5iteri23^ 'further £40.000 to community hand over full responsibUlty to 
bad temper if thwarted ? but not arts P«>j ec, 5 ha tbe coming year, four of the regions. North West 
capable of controlling hi bowels! ™ s ? in additwn to toe £L3m. Am, Northern Arts. West Mid- 
Around them, their society dis- already allocated for arts centra lands and Merseyside, 
integrates. Monty, most agsres- ?£S, conununity projects In 1978- additional money will be 

sive of the anti-Fascists in 1936, 10*8- .cpmoa^sd with less than divided between regions to wbich 
runs a greengrocers in. 1955; *it».'in 1977-78. _ responsibility has already been 

Dave, tbe only one to fight in The Secretary-General of the devolved and other regions 
Spain, is disillusioned by Arts Council, ~ Mr. Roy Sbaw, where there is Local Authority 
Salinism and builds band-made : said : “ This money is intended participation to which tbe Arts 
furniture in Norfolk, taking to strengthen . the hand, of Council is eager to respo'nd. 
Sarah's daughter Ada with him. regional associations in assuming 
Young Ronnie, who at school was responsibility for community -arts 
to be the great Socialst novelist, in their area. They have already 
becomes an . unhappy chef in been working hard to securg 
Paris, disillusioned not only with local authority participation in 
the Party but with life. this local ‘ development and we 

Wcskcf charts 1 this progress would not wish to see their work 
with masterly understanding. His frurtrated by lack of adequate his success at the Riverside 
characters are portrayed, not fuads” Studios, Hammersmith, Alec 

necessarily in prolific detail, but The Art Council’s intention is McCowen will narrate from 
in just as much well-chosen detail that responsibility for support mpmorv t hp whole of St. Mark's 
to make them live as part of the and assessment of community ”*““7 ® AnthnSfl 

landscape of East Eid society, arts should be devolved to the *** m the Authorised 
Life in the Kahns' home" involves Regional Arts Associations.' The Version. This will be for -23 
one. as if one were a lon&stand- first stage in- -tins devolution performances only. 


For 23 performances 
only 

Opening April 16, following. 


rv their much-praised 
recording of all the Beethoven 
sonatas ’^or violin and piano, 
Itzhak Perlman and Vladimir 
Ashkenazy t are repeating the 
cyde-bn thA South Bank. They 
began last night with tw.o of tbe 
little . op J2 sonatas and . the 
“ Kreufaer,” with 'the rest to 
come -on the next two Mondays. 
• The studied sympathy of their 
duo-playing does' * hot disguise 
their distinct musical personali- 
ties. Perlman -is aH serenity, 
long-breathed lines, . finely even 
tone; if he experiments it is only 
is private, and the public results 
are self-effacingly secure. Were 
It. not for tbe striking sweetness 
and delicacy ' of the sound he 
makes "the performer would 
disappear behind the music. 
Ashkenazy’s finesses are usually 
more- overt: he conveys a de- 
lighted surprise at coining upon 
this or that passage, and turns 
it to a new angle as if to view 
it better. In tbe D major Sonata 
of op. 12 last night he was un- 
woriiedly cautious, as if uncer^ 
tain at that stage how touch he 
coodd do without overbalancing 
the -violin — dr perhaps the music. 
wWrti is not "the strongest 
Beethoven, simoly promoted 
nothing more. Even tbe Rondo 
was only moderately sprightly. 


Both players wanned more to 
the third of the op. 12 sonatas, 
the one in E-flat. Ashkenazy 
matched Perlman’s poise in the 
Adagio with a wonderfully 
liquid bass-line which spoke 
tenderly in the softest possible 
undertone. He was tempted to 
scamper ahead in the Rondq; 
the semiquavers took possession 
of his fingers; leaving -tbe violin 
to sound unfairly tame and 
sturdy. 

It was left to the “ Kreutzer’’ 
Sonata to draw on their full 
powers. The outer movements 
were brilliantly fleet but not so 
much urgent “ simply mer- 
curial: showers of silver broken 
by brief, intimate reflections — 
never heavily pondered, but 
stated quietly. The centre of 
gravity was fixed unambiguously 
in the great Andante con Varia- 
zioni, which, trilled and sang 
more and more richly, each 
variation seeming to take up the 
threads of the last without an 
intervening breath. The move- 
ment took on . a sustained 
radiance, and the darker sug- 
gestions of the music became 
luminous in it. Not the only 
possible view of the Sonata, but 
a takinglv lovely one. and 
realised with effortless grace. 

DAVID MURRAY 


Air Gallery, WC 2 

Campiello Band 


'.After, .-some - ' lighter-hearted 
forays into crypts and foyers at 
the National Theatre, the Ser- 
pentine Gallery and St. John’s, 
Smith -Square,' Michael Nyman's 
Campiello Band has settled 
down- into the role - originally 
conceived for it as a “serious” 
(though .by no means humour- 
less) experimental group. The 
ensemble ■ still .plays the same 
'bfaurrre collection . of Instru- 
ments: but the camp in Cam- 
piello has cooled; the more ex- 
cruciating ' Verdi ' arrangements 
have, been discarded; and even 
the players -of the non-chromatic 
i instruments like cu rtak. shawm 
rand bombard, as veil as those 
of the tricky rebecs anfl lyra de 

braccio; have been persuaded, 
more or less successfully, of the 
Virtues of playing in; tune. 

The programme last night, of 
the Campiello’s. first serious 
London concert, given at the Ait 
.Gallery in Shaftesbury Avenue, 
was devised and composed by 
Nyman "himself,, and strictly 
speaking contained no arrange- 
ments at all. Closest perhaps to 
■the genrerat least of sassy re- 
arrangement. was Be Don 
Gioftmm'— the first 16 bars -of the 
Catalogue Aria dismantled and 
exuberantly ' reassembled for 
piano,- .. .two . vinlins.. : : banjo, 
euphonium, bass clarinet and 
Chinese flute : though in its new 
form." far, more like a mediaeval 
Paul Anka’s Diana than any- 
thing from Mozart. 

It was an evening, indeed, of 
Familiar harmonic sequences 
made still more familiar; varia- 
tions on a tonal theme, treated 
with simple chromatic reverence, 
laid out in simple patterns em- 


broidered in simple additive tex- 
tures — no working of great 
sophistication, but nothing either 
precious Or coy; a refreshingly 
good-htun cured .programme of 14 
short pieces, noine long enough to 
labour, brief facets and reflec- 
tions of a single view. 

The most abstract of the con- 
ceits, a single piece called 4 
Walfe Through H, part of A larger 
projected work, gave a formal 
framework to the sequence, re- 
appearing four times jn different 
guises: at first a long-sustained, 
slow-shftng chord . held against 
piano rippling— like Philip Glass 
with a spoonful of sweetener, but 
less busy, less insistent; a faster, 
jogging 15-note motif, against the 
same rippling piano, -quick, lucid 
mechanism; the .third, the big- 
gest, most jubilant variation, 
punctuated by solos, a moment of 
. gudden^dranratic force; the last, 
a swirl of lBtii-notes, virtuoso 
elaboration, driven to a sudden, 
breathless end. • 

And along, the way, beside the 
Walk, variety, of views, even If 
essentially of the same scenery 
—some of them unexpected (Is 
It a Fact That Mice are attracted, 
by Music, the most- grandly 
orchestral of the pieces, offered 
a positively Wagnerian solo- for 
empHfled rebec in jiiicy. counter- 
point with the ensemble); others 
less- adventurous, and., as the 
sequence - progressed, a shade 
more predictable. Pretty Talk 
.for George Brecht was one ex- 
hilarating exception: a musical 
layer-cake oh the Capern’s Bird- 
seed label." very funny, and in a 
wry way. very touching;' Repeti- 
tions can, and do, become repeti- 
tious. . „ 

DOMINIC GILL 



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& 












J 


1 


Financial Times Tuesday- April 4 1973 


FINANCIAL TIMES 


BRACKEN HOUSE, CANNON STREET, LONDON EC4P 4BY 
Telegrams: Flnanlimo, London P$4, Telex: 886341/2, 883897 
Telephone: 01-248 8000 


The Grays affair stirs up 


Tuesday April 4 1978 


B lit * fV 1 1 L ll I lL Hr 1 building societies have 

O I suffered a big dent in their 

"*■ image of . safety and ? 

*■ T|T| security as a result of the £7m. 

«f 1 I {Tfe "W* losses of the tiny. Grays Build- 

II I II I 4% I ing Society. 'While the shock 

waves spread out through the 
movement the big societies, 

which have been asked to foot 

DESPITE the greater concern obvious explanation of them, the bill, are already devising 
which the U.S. Administration Exports dropped a little while ways to try to ensure that the 
has shown in the past few imports soared, but the increase Grays affair should be the last 
months about the weakness of in oil imports (which can be of its kind, 
the dollar, the weakness has explained by the coal strike) Among the societies* main ft 
persisted. A variety of different was a relatively small part of priorities win be moves to 
factors can be cited to explain the total. The fall in the value establish a formal “rescue 
this. First, a number of of the dollar has itself increased fund,” financed by contributions 
observers both in the U.S. and the cost of imports, but not from its members. This is likely 
abroad are still at least half enough to account for the Feb- to be accompanied by calls for 
convinced that some members ruaiy figures or remove the much tighter supervision of 
of the Administration are not fear, that the total deficit for building society operations. If 
averse to seeing pressure put the present year may be sub- proponents of these suggestions 
in this way on strong economies Martially larger than last year, get their way, the result could 
lik*» Japan and West Germany, „ ,, 7W be the establishment of a system 

which they may regard as not *OSSWlUtUiS closely parallel to the arrange, 

doing enough to promote world The dollar dosed off the ment ® which are planned for the 

economic recovery. The ded- bottom yesterday but was still banking section of the financial 
sion to activate swap arrange- lower than on Friday. Vice- market. They could provide at 
ments and intervene more President Mondale has already Jeast part of ^ answer to the 
actively in the markets, in par- let it be known publicly that criticise being levelled by the 
ficular, is more a smoothing the Administration is seriously big banks at the structure of the 
than a support operation, how- concerned about the rise in the building society movement 
ever dramatically it may have trade deficit President Carter Tb e Grays affair will not 
been introduced. has stated that one of his first m**®. an / . easier for the 

Second, some of the Arab oil tasks on his return home will building societies movement to 
producers, concerned about lie be to announce the various withstand outside pressure, such 
decline in the value both of decisions which the Adzninistra- ** *bat ^ ro,n Jn® banks, for 
their dollar assets and the real don has been taking Some fundamental changes in its jj£ 
price they receive for their oil, major statement therefore methods operation. The ^ 
have been talking both about could well be in the offin g , and °f tb e revelation of the 

diversifying their assets and there have been several differ- mass * ve losses at the Grays _ 

claiming compensation for the ent hints dropped about the cou ^ no * have been worse from 

fall in the dollar. Third, the possibilities, J»e movements point of view. 

cj7p nf thp pfval TYiirrerc* nav t> a _i _ „ It IS &tl tOO well fiWSTfc of t/16 

settlement followed by a k erlia P s most surprising, potential damage inflicted upon \ 

settlement — toil owed oy a because of its outspokenness, ft- hv the recent events firs 

speech from the leader of the came t u- rhair ir ” y recenr events. nrs 

Teamster, -has helped to re- 5"5i. F ° r fiL S'Sj’ 1 ^ d ™ lb E 

inforce fears about the future Board. Dr Arthur Burnt: m ? n *. higbli^its one of the imt 

course of inflation. This is th e < L of' talfw^k cnt J cls ™ s I . w ^ lch . . hav6 

already running at a level high ^ *£ ™ ad6 advantages enjoyed dt* 

enough to have created rizeaWe g prevent «** by the building societies m Bui 

ev0agti : t0 steea P le senous international damage rnmnetino for ravines The Th< 


BY MICHAEL BLANDEN AND MICHAEL CASSELL 




- . •*v. 



is itself now -to develop ft, 
towards becoming a fun i 
ing operation,, and the bid 
societies. w 


•'■•M t*'l 

‘ V ) 


vxir? >r, . 


‘ ^ :&r;ar7rz.sz'S-srs;x - 



< •/ Tw':‘ < .M 


m* *r * 


*»_• 3f. 


L-;>« • 

' ’ *■ ' ' 




't •' - ,v‘ - v>r_v* 


.» - . j : y, 
' • - * i 


The banks may feel. * 
fare, that the Grays'^ 
operation and its aftennatt 
; add considerably to the sty, 
of tbeix arguments. It has 
lighted the problems am; 
costs involved in eng 
absolute safety for dew* 
and the fact that thei 
investors will not have 
able to withdraw their r 

for .. some time at 

until the office is able to 
again — has perhaps sli 
damaged one of the aspe 
building society co m pe 
which most concerns the 1 




This aspect is the aba 
the building societies to 
their depositors instant 
deposit and withdrawal 
ties, and to do it at time/ 
ticularly on Saturday^wS 
banks are nnable to o^en' 
doors. — “* - • ? 


-J 

- X* 

r ' 

*■“ * 


• Terrs KMi 

The Grays Building Society head office in Essex: It remain e d dosed yesterday. GU the tight is MQc. Keith Eroding, 

Registrar of Frie ndly Societies. 


The main target of lie ‘ 
is not only the building sot 
They maintain that the du 
tion of savings in the fid 
markets is distorted in a 
her of . ways by fiscal and I 
forms nf encouragement 
vided by theGovernmentj! 
benefit ofi I^ationalSayity 
the Of e' assurance compai. 
well as the building sol :<£ 
The banks* argument istiu 
incentives ' Should he 


When problems at the Grays a call for a wider “collection" There . will now almost big banks have been most generally available—prei. 
first came to light about among societies— the movement certainly be calls for wider directly concerned- in- their ^ by offering; them to the 

Hun uiOnlrc 1 non thn cn<«iaHQP hdr. nAm v«n it-f itrnlf MimV nAUMM- tk^’ T1 - * ‘ a .— ■ jt mr_ -a’ ** ’ j* 




pressures (their nature varying that b* hvTftfr compcu " e ^ Ior “v*. a , rT- was continuing closure of a bmlding 

with their source) for a more Ser d^dtae inX 4 i«p ofS TZ '*^1^*™* v S lve J “ d Sowety was society head office, with coin- 

vigorous programme to control ^n ar thl fi q ,hnn^tp™! Committee pu^ absorbed quickly and without plaining investors gronped on 

ymr 2 £”- a srE 2 & “Lft VZiZV fs 

Trade deficit £,*2 fL v ™ 1 Z ^®S*SE*J5 SSSSJ "-."ELtia. •" which 'the 


larly oh the building. sp-. L - . 


~ \ J T , in S °° but issuing incouraie home ownership. But occurrences, the Woolwidi-the o hpr societiS will Z eek 

Finally and most recently at foreign currency bonds on a they are also concerned that the large society nearest to the MfirP nPOTllP th 

^e_end_of lart^ weeK came massive scale and mobilising the societies will be excluded from Grays area of operation —was StSmSp!^ iVIUC^ |Jt*UpiCLU 


very poor trade figures for gold reserve. His successor at the arrangements for a special asked to send someone to study b.CIi, of 7h e rSrfRe-fstrar j , f 

February. The bad weather the Fed, Mr. Miller, has con- fund to provide protection for the accounts. By Easter Monday Friendlv SorietieSJhl 0 mmrl OO tuC TOD 

and the coal strike have cut centrated more on the fact that depositors in the banks which the first look at the Gray's J v" 


back the U.S. rate of' growlli howler'* deplorable jUTmi ^der" the new b‘^k“ hPnd-writtw ledgers" had * “{SfSed? “SteiSS If the 'Registrar's. Office is to’- 

since the turn of the year, so quences in terms of economic ine supervision legislation. covered discrepancies of a size ”7?' l S2 P - mirsue its monitorme more \ nstttll tions. This will_ mtto- societies. Anff they aigt . . 


.. In the wake of that crisis, the tively being placed Vott.V .. 
Government is now planning to term. • They- see the pro .", 
formalise the .arrangements^ for of- r new services hejng::;. 
the protection of depositors ns loped; such as the prbvht. 
part of the legislation planned American Express : tra'"' r 
to establish - a new basis for the cheques announced yer; * 

' supervision of deposit-taking by two Mldlandsbased h y 


since the turn of the year, so quences in terms of economic ing supervision legislation. covered discrepancies of a size “7,T‘ pursue its" monitoring more 1 J uaLiX “ uuu f- , w “ l . ““Y «"S U, » W"**.. 

that some Improvement in the growth, interest rates are bound The ideas now circulating which took aw^v the breath of Z 'l nf^ iwroiSwinJ th5? d fhl cSrehensiv^ it could Mso duce . for the tune ” ' s besides the advantages tf ~ 
figure, w„ »o»ed for. In fact, to rise further if inflation eon- amen* the buiMing societiel the societies. S “LS™ “‘j* usSSflTout Tonrard TcSo for ^mtrir a _, ompreheosive ^tem lower overhead,, ammg ; 


Almost down to 


single figures 


aiau uii: i. ■ . u ... - ...i ■ . .fTnjw irrarii uapimuuua J 

xamined by the Registrar's to make up for the.-, short- ^ ^ ~ ■ ■' 'ftrfure of the movement 

fficc. Each year societies with comings of other operations.-'. . The v official' pri^s^' hdW'’' Wry, - they may be aWei 




figures was hoped for. In fact, to rise further if inflation con- among the building societies the societies way 01 sy arameei "Z mai Tne usdfuilT out toward 7 rose for coanuy a comprehensive System lower overheads, arising;; - 

?e February deficit is nearly tinues at its present rate and are,* some remark- Bm sp«d was essential. Such tSTI morfpeopte toTfhe Si fS ? f “,f f *»’.«• in^ because they do not P^ ; - 

double that for January at the trade deficit at Its present ably similar to those which is the movement’s over-riding aSain . chaJleT1 § ed 10 such a w hii 1 it L> s an d exmnims S t,0 “- 11 wJ ! al 80 op * ^ range inf costty sen- . 

?4.52bn. and $900m. higher than level. Finally, Vice-President have been put forward In rela- concern for protecting Its dama?ing way_ • . . the accounts of .U.K. bufiding to-eover- small-^Iepasitprs in;aoy' ; tiie banks. the budding si ■ . . 

the previous record last Octo- Mondale has once again reitera- tion to the banks. If they were largely untarnished image of A major area for ‘attention societies each year .it is j^rastitiiticnrj^ which.- intoenjoy a numberof bene 
her: in the first two months of ted the need to make drastic adopted, they would provide a soundness and security that the W ‘U be tbe role of the iChief equipped ‘to carry out a water- ? 0U ^^' 7a P^°P®^ Which ha& ytoifred by.thfe-Governme v 

1P78 it has been 60 per cent economies in the U.S. use of oil. fund similar to -that proposed five largest societies were com- Registrar. .Under the Building monitoring role. -‘ in been^tiie'Subjeci Gf a good. de^l The. Gtaya af^r.riKiId - 

bisher than in the same period These axe only possibilities. The for the banks to ensure that pelled to pledge themselves to Societies Act 1962. which vests addition, the Re^istraris bffice . c ^ tl 5 lsID ' fpom the DJg elear- fore, .bring results . wh " ' 

of 1977. Our own recent experi- one certainty is that a half- depositors would not lose their cover the losses, whatever they the role - of - monitoring' the ^ Vespanabilities bevond the : ■*. " .some ways would answe* — 

ence suggests that the figures hearted statement by the Presi- money. The case being argued might finally be. societies with- the Registrar, a j, U ildina society sector which Thev havp areued- consist- of the bank’s criticisms, 

may turn out to be a statistical dent will do more harm than by some of the big societies Tbe Grays problem is so large society has.;to proride him with mak heavy demand5 on its fn tly that their- o wn^sfahititv* is offers, -'the rbtrikHiig 8^ c 

freak: certainly there is no no statement at ail. suggests that as their own .that a normal transfer of an annual return of its indepen- ^ ca y e ^ a - hot inTdai*L and which-, hi , ** 1 - 

financial stability is not in engagements to a single society dently audited accounts, as welt •' . *. shoijldfherefdr^imr ^ re ^ 1 

question only the smaller has been impossible. The as information on the opera- The societies hntfived;Jn the _ f,; rapidly to even 

A _ societies should pool resources societies have been unable to tion of the society during the Gras resciaeJ jriil ajsa.iraBt to ^ -^-opportunity to demo 

A to help in the event of further avoid sorise delays — breeding year in question. - estabtish.soffie»sg6m^ , ^ er ? fa 3r ability to react -1 

/m llTlllSl flliwri 111 failures. uncertainty and doubt in in- The accounts and monthly they wiif npt be expected^ to- pay eiarai j t ^‘. ^Specific problem wh 

i. AlilAUul' 1*1/ if II l/VF There is no doubt that flie vestors with societies other than statistics - also provided are out their HVra Urtejtora:; money. "J^rtant implications J 

five largest societies called in the Grays because of the sheer examined by the Registrar's tD make up for the.- sbort-^ :• . \y~y '-{upvre of the movement 

9 ^ __ to sort out the Grays debacle scale and complexity of the office. Each year societies with comings of other operatiqiis. . The v ^ way,: they may be aWei 

^ n/nilfAn —the Halifax, Abbey National, affair. potential difficulties ahead of The question of how ‘to ever, are that a number of stall outside critidsni- a 

^llly I |IJ>||rr^\ Nationwide. Leeds Permanent However the losses are them are identified and action, ensure the protection of institutions would be excluded possibility. of their frew 

and Woolwich Equitable — are finally met — and next week’s often ending in a transfer of people’s savings in all forms, from bearing the cost -of. sub- action being curtail* 

far from happy about their ‘life- meeting Df the Building engagements to another larger of deposit-taking, institutions is scribing to the fund. These tighter externally - b 

boat ” role. Societies Association could see society, is taken. one of the points with which. the inchide the National Giro, which controls. 

THE GOVERNMENT has no November when the rate sup- 

power to control directly the port grant for 1979-80 will be - ■ " .f'v . ; ■ 7 ' ■■ ■■ ” ■ 

amount of money local councils settled as they were last Novem- _ mm m - — _ _ __ _ _ _ ^ - V-.iv 

spend. So long as local authori- ber when this year’s grant was nfl irM fft llll • Rfl A . 

ties are free to decide their own fixed. For Mr. Shore took a Ilf I P Ml UIVU IwBAA I 1 1 na 

local rates, Ministers have to calculated risk in deciding to m alllv ■■■■ » ■ I Brafl 

rely upon whatever influence give the same percentage grant 

they can muster ‘hrough a com- — 61 per cent — as in 1977-78. ‘ • 

bination of exhortation and the He could have opted for a |f>c ^Incp pmg ‘ After al1 *- araon 2 the whether to commit a crime.’ His 

leverage afforded by the tougher grant settlement by 11,0 X. tankers to sink recently were model -in fact considers degree - 

Exchequer grant -which is paid taking full account of the x 0f- PnrAlinfpt* tbe Liberian-registered Argo of religiousness, as a possible 

to support local authorities* recovery of local councils' cash ■*/* tlltrWUllWJi Merchant, Venoil and Venpet factor — and the- findings he. 

current expenditure. Mr. Peter balances and the small year-to- » n , 0 frtr ■ ftzsss-^ fc? And * Qf course, the Amoco tests the model on • seem to 

Shore, the Environment Secre- year growth in aggregate rate- ' Jy ^ I ^•==!=iS Jv Cadiz. ... A little oil on the prove this. 

tary, expressed the hope that able values which constitute “JJJt. j' ^, ri j ” jft/k flag, you might say. •Twill snare vou alibis sag 

s srsvz SfHSs I & JvL •- 

/fi-f Econerotic ® • 

grant for 197S-79 on the basis distribution of grant towards toId lx,e yesterday. The J/ was economic explanation for * ^ 

of an unchanged level of grant- London and the metropolitan pn ? t ^l s f 1 ?. a j™ DU * th ° y all endeavour. But now, 10 w af i nr inted «ip niepp That was 

supported expenditure in real areas. understandably do not want to years a[ter ^ gave U s “Crime K " 

terras in the coming year. ^ «W for very far ahead, in ^pggpggggg^ ^ Pun i shm ent: An Economic ' « 

According to a survey carried Manipulation St, thC h ? IU ? . DWe L.^SP"^ Approach.” Chicago University’s hlnS Sf Z 

out by the Rating and Valuation w pv . r sham nhanpes in ^ asky . has # be o 1 ?» edltor Journal of Political Economy t mTifrnnt ™ 

Association rnwrincr of the However, sharp changes in Encounter for 20 years and. .• has a new trend setter—' “ \ . confr -°nt my question of 

403 ratine authorities in ^ distribution of grant of the when I spoke to him was send- Zf » • v Theory of Extramarital Affairs ” w .b et ber he had ' written: with 

England and Ws5m th?meaS ■ Wnd local authonties have ing out final invitations for a _ . 4 ^ of Extramanta 1 Affai . j, IS tongue ^ his cheeic „ It 

inf»rpa*p latLJVnE experienced in recent years can party next Tuesday (fittingly A**/ resemblance between Tbe article on this by Vale is not a joke,” he told me on 

ha C s been ahm,rii^npr !S,t b 115 make n Inore difficult for Iocal enough. Budget Day). The 111 c foUowing and a Party Professor Ray c. Fair develops the telephone from Yale, “ but 

s oeen aoout n per cent. councils to keep to. tbe Govern- party, “strictly limited to cheap p otitical Broadcast will be a model that “explains the alio- is in the spirit of economists’ 

Oversnendinv meat’s expenditure guidelines. pi 0 nk.” is to celebrate the entirely intentional ” cation of an individual s time recent work on suicide, 

_ 1 * , Councils receiving a bigger magazine’s 25th anniversary, f^ong work and two types of marriage and church attend- 

The outcome may be thought share of grant are tempted to due j n October. “But we may leisure activities: time spent ance.” He felt there was a role 

sufficiently close to be regarded spend more and those receiving no t get there ” admits Lasky r . ' with spouse and time spent with for economists to play in such \ 

as broadly satisfactory. The less may not find it easy " Tree ranging paramour.” research and said thdt all he ' ‘f. 


« 




MEN AND MAHERS 


for Encounter 


ping. After all,, among the whether to commit a crime.’ His 
tankers to sink recently were model -in fact considers degree- 
the Liberian-registered Argo of religiousness a’s a possible 
Merchant, Venoil and Venpet factor — and the - findings he. 
And. of course, the Amoco tests the model on seem to 
Cadiz. ... A little oil on the prove this. 


flag, you might say. 


- 



Econerotics 


T will spare you all bis sug- 
gestions .of seeing tire’ matter 
os -a- game-theoiy problem.. or 
comparing looking for an alter- 
native spouse with job-search- 


I had always thought that it was Jr “ n „, r 7 { . Jz: " 
Marxist to belike that tbera “*■ IS*** “ 


was economic exslanaUon for ^ 

i.-. m of Holies of the monetansts. ; 


yearaalSrZy ga^us^e 


and Punishmentt An Economic difficult -two edtiors . were in 
inLooh •’ Uv Israel and a third irr -Hawaii. 


Approach." Chicago University’s ^r, , £?*"■ 

Journal of Political Economy ®? n ’ F . air . hto,self w 5 i happ y 
a rtow tmrtri coirtlt- “a to confront my question of 


The article on this by Yale is not a joke,” he told me on 


Overspending ment’s expenditure guidelines, plonk.” ’ is” to ' celebrate the 

two * , . , . Councils receiving a bigger magazine's 25th anniversary. 

The outcome may be thought share of grant are tempted to due m October. “ But we may 
sufficiently dose to be regarded spend more and those receiving no t set there ” admits Laskv 
as broadly satisfactory. The less may not find it easy ’ y ‘ 

difference may reflect statistical to adjust their expenditure Encounter’s contributors over 


entirely intentional. . 


difference may reflect statistical to adjust their expenditure Encounter s contributors over __ A rarefied issue? Not at ail. had done was ’to annlv a 

factors in that the R and VA’s accordingly. The effects of the the years have been a roll call 0beria ». 0 wlnHm seeing that recent u - s - surveys standard utility maximisation 

figure is a mean, rather than a many changes which were made of the distinguished and famous ia s p resident wimam sbo wed that one in four of men model to the question, 
weighted average. It may re- this year ii the swtem of grant (t>« a^ays the same, of J? women in their Eret mar- g 

fleet local treasurers' caution in distribution are borne cut by course). Roy Jenkins writes wouse last eex riage have ] overs Also, Fair 

budgeting foT a somewhat higher the R and VA survey which regularly and has told Lasky ^ ® claims, the model he has devel- X/orhoi flicrhfc 

rate of inflation than tbe figure shows much lower percentage fbat If it is possible to hang oped can be. applied to other *01031 TllgfltS 

assumed by the Government increases In both household and ° n be ^ 1? r^se some “ ? “ S* hiLSPSpiSilton? types of ,eIsure activities. Searching for an appropriate 

when it made its calculations business rates in Greater funds around Europe. The c . hnve h2»n for “ Pleasure is none, if not term of approbrium at a n EEC 

last November. On the other London (and slightly smaller magazine has been living from ■ 1 . “L 3* fliversiTd” quotes Fair from budget meeting in Luxembourg 

hand, it could indicate plans for increases in the metropolitan hand to mouto, running defiats ^ "O^s ye y, out John Donne (ig67 ed ) He yesterday, Denzil Davies, the 
an overall level of expenditure districts) than in the rest of of around^ £30.000 a year, ever then Gives us three oases of Treasury’s stronalv anti-Cnm. 




an overall level of expenditure districts) than in the rest of of around KO 000 a year, ever then gives us three pages of Treasury’s strongly anti-Com- 

in real terms somewhat above the country. sincel^jni Ryder took over IPC ^ Andrew Youne 3 algebraic equations and jargon mon Market Minister of State, 

the Government guide tines. Changes of this nature not Young likes Nigeria but. in such as “ at the optimum, the compared the CAP to “ an alba- 

There is already some evidence only open up the grant system ^ had 617611 for s6Ven years - common with many black marginal utility of time spent tress. Klaus Von Dohnyani, 

to suggest that local councils m to political manipulation. They An Encounter memory that Americans, thinks Liberia a in the marriage is equal to the Germany's Minister of State for 

Scotland are once again over- also reduce its effectiveness as dies hard with the Intellectual home for Unde Toms. When marginal utility of time spent in Foreign Affairs was quick to 

spending. The situation in the main instrument of central Left is of its unwitting receipt Carter’s trip was planned last (df/dtl— dg/dt2).” • retort that ‘the albatross was a 

England and Wales will not influence over local government of funds in the 1900s from the November be opposed Carter’s After some chat on deriva- beautiful bird which flew for a 

become dear until detailed spending. The Government can Central Intelligence Agency, including Monrovia on his tives cross-derivatives and very long time." a more 
returns of local budgets for claim considerable success in The staff still wince at the itinerary. But Tolbert’s emis- “ concavity,” we learn apocalyptic note was struck by 

1 978-79 a tp. siihmittpd to the hrltutira a. tit l* * that thp ifiMtviA efffipf nn lim A MlCbflCl O’Kennedv Trplanrt'o 


resistance of glass,thafe Howard ,* r w -*G 
Permagias®lndustrial SforagelAw? .; - 4 ^-* « 


1978-79 are submitted to the bringing the growth of local mention and say that editori- .saries to Washington overcame that the income effect on time Michael 0 Kennedy, Ireland’s 

Department of the Environment spending to a halt-. in. the past ally, with 21,000 subscriptions, this 'and Carter may well have spent with the paramour is Foreign Minister. Hfe remarked 

in a few months’ time. year or two. The task of keep- Encounter is stronger than ever, been pleased. After all. he had “ positive as expected ’’—which, that the British, as a seafaring 

If these figures do show that ing local government expeadi- 11 Our crisis is one of business quite a lot to talk to Tolbert being interpreted, means the nation, should knnw what hap- 

local current spending is likely ture within limits the nation management.” admits Lasky, about . higher your income, the more P«ns to people who shoot alba- 

to be higher than the Govern- can afford will be rather harder This week he is watching every One Liberian has suggested to time you have for affairs. trusses, 
ment considers desirable, then during the next phase when a mall. In hopes of a life-saving me -that Tolbert’s ‘lay preaching Fair himself suggests the - - 

local councils cannot expect to moderate rate of increase may letter from a German business- might have led to a meeting of decision to have an affair could 

be so favourably treated, next he in order. maq he met over Easter, souls — but more topical is ship- be analogous to the decision on jj| . t ^ 


Glass-/used-to-stedpJatesgjveyousteeIstren^h- 
plus internal protectioafrom corrosive liquids-extemal .: „ 

protection from Ind ustrial atmospheres. Whether youTeston- * • . . 

.poHtia f orpdIe^fTbrousmataiaIsorh'qujdsofa^ nscosl Y r '’. - . ^ ■<%. ' 

- vre'havearajn^oFtanksiipt6423,000gairoris(1920cu. -a; ^ 

metres) and drystorage structures up to 1170 cu. nitres. 

. If you ftavea storage need-send for otir .. 

. 12 page full colour brochuro-yotfll almost 
certainly find your- answer there. Srfr 

. Ask your secretary to write to: ' ■Pi§l ..;f 


F 


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Howard Harvestore Ltd. 


A mwter ol Hawaii Gnxp 
-EyaSutelklparHS. 

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TTie raDmifications of the kidnapping of Signor Aldo Moro may be far more widespread than is 
g®a&aly appreciated outside Italy. The kidnapping itself is really symptomatic of the problems 
lacing the country, which still has a long way to go towards gaining political stability. 




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intend to reply. political right MSI in the last general net (throughout the country in These institutions have been held office for a couple of Carter Administration's pub- 

parties r— but wry much less election. the search for the Moro breaking down in any event; decades, and who still do: Ucly stated views that the UjS. 

SO ordinary Italians — are still The minority- Christian Demo- kidnappers. the terorrists o£ whatever ilk In the cat-and-mouse game did not wish to see any in- 

in a state of shock;' and behind crat Government of Sig. Giulio Qf course the kidnapping of aQ d national origin have had which the terrorists are playing creased Co mm u ni st influence in 

■ we shock thereis. also an ele- Andreowi has already put former ’prime minister and nrnch of their work already with the State, the aim clearly Western Europe, and favoured, 

ment offear.Tbere is, too, a through a decree law with virtu- siavmp 0 r hi* « ve hodv- don - e for and a climate is to pull everything down. Sig. instead, a reduction of its pre- 

aangea: that4a^-rMponse, when ally ajj-party backing, giving guards is different in that in which ordinary people no Moro himself is one of the few sent support. - - 
it comes, way, not necessarily increased powers to the police Sniouelv it wa<s the first such longer have any real hope of leading figures personally un- u .. 

^^HSSfarch^and arrests, ^^tly on toT Staw “S&S?* 4 h l ^USSSS ^^ d MmOflty 


Following Italy's inconclu- 




■■■«>■* J)v 


-battle agaiijst the terrorists, but the limdjed questioning of sus- h.it Z I 1 ® 6 More than one and scandal or wrong-doing 

““M T of **•“ ““*» unemployed, before hie kidnaping was. . electl<m ta June . 

&5St &2P*-** *■ -ad . w^ose^tele- «"• f «■«**“ ,°L, whD “ ?° ubt o r 

** »^Sr ThfwSte too. is •SJZHTS'ZSZ* !“•»; VS°L ?^ seMrally acceptaWe Stion 


n.n 


. - ,: -0 Grn-fn,^ 


dividuaF-.libwtJr. jowe .is phonc^apoing. But 

S5a«^ia ~ at^r^ ggzfjssn. ?j*£ 

= pans 4.^ swjfSLffjfys'S %a-Su»5 ^ rs.’ssrs s b5sm«jJ: 

powerful' Co mmag lgg (PCI), SSI^S imroly ement by .politicians them- expIoited M \ \ lh ostra _ the man’s political future, even 

that “we must now go to the ransoms) and acts of seJves ^ ^ sorts of shady pa?i^ me ntary forces if he is subsequently set free. offia 7, Th« ™ through the 

— limits of the 'constitution" to . terr ^P s ™ ^ nexe aiter " dealings, and not just lihe cele- P _ ... . „ And this the one man who, so-called POhcy of absten^ 

■■fi’maiitj u T|_ T '. r * - defend the slate and ib ihstitu- throuighoutthe country brated Lockheed scandaL In JP e k i d “fP ping °[ s |f had he personally wanted it, Ch »•£? 

- •uM j/Jfy liomuuck-.j. Coyfe tions. on at least a weekly basis. The the deep south right now, in the ha * . „ raU! ^ d a the would almost certainly have abstained on any key vote likely 

, , Political forces, and notably the Cai^^ capitSTf Catanzaro, PgJjS* J stop and refle ^ been nominated withall-party g brr ^ dmra the government 

*|jfn .l A hpArli ConanuiLists and the Socialists, a major trial is still continuing, although who can say with backin'* includin'* that of the However, the Party s base, rep- 

• . CHALLENGE to IWy ADSOrD , ■ took no oomrae demsions then 5S certainty for how long. Even ***" «— 

today is very reaL- The sensa- 


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ra’jii-r iha ™ CHALLENGE tb Italy Y took no concrete decisions then ^ directly out of the last £ lu £ mj ' t i ur . T* J UI 1’ J 2?“ PCI. 

® — — i - ^. e-. — e a-j— **: li “iTTLialj „ Z>7 the President of the Republic. 


■.rden., « Wjwy is very reau. me seusa- in a country which passes to support Sig. Andreotti, In p^od of awalled “political «« « . ___ . . - . u «m. « - . .__ e . .. _ . 

:aj r.eu:ra: ; \y ■ ;a ^ tional kidnapping last, month, of many more laws that its Institu- part at least because — or so tmsioo ” nn Italv with the homb- Slg - one measure of the real crisis *JP* 


next December as the reseirting the more than 12m^ 
country’s next president. It is ^ le who voted Commumst- 


•V* 


^ Sig. Aldo Moro, five times Prime tkms ever -managb to enforce ^ seemed to reasonable obser- j UES s_ Milan’s piazza Fontana. °^ Vn name bas been linked in currently facing Italy, and also ??*** ^ percentage points be- 

Minietai- nnA ^ ■ ■:■ ■, .■ +» r.ft> in,gs m aanan6 roazza r omasa, ♦v.g nast with nuoetinnsthln . . L _ J b CT**_ * hind the lnne-rutine HT .1 ennn 

Minister and President of the fftetunately;^ ^ atcOrding to the y ens — Wiey wanted totrade off The suspects then 


past with questionable o{ t j, e power— -however tern- 1116 long-ruling .DC), soon 


■ jrt’susi.kgtm powerful Christian Demor j£te Iarig! Einad/fi, the distin- party political gains against w^e from rf,p evifr^ie Left but brfiavi °V r ’ with no firm porary — in the hands of the ttc 

! .- , r«->-n t Ti*»i^c r at (DC) Party^- is not just gnished Ttalian^ecOnmnist and more **' ta ^ ra ^. ? u } supporting evidence, acknow- tPrr^sts leadership, asking why the PCI 


... = 3t crat (DC) Party, is not just guished ItaliAn~ economist and more effective security t T ‘7~~ suppopmg eyiuence, acKnow- terrorists. . . . „ 

» . another indictment of the ex President of r fee Republic, measures. hedged publicly last week that Another important compo- was maintaining in office a 

’ •: v - < ’b ar- security forces who have 1^?^^ of maiotoine “erron" of the past would nen t of the crisis, and one was comnritted to 

. a . ^ tW L?l po1 ^ “E ^ have to be put right winch could well determine not status-quo and which, in 

5 almost certain involvement ;jliat ^ nature of the Govern- the e y es of PCI activists, was 

■those MUan events of ele- — ir men f S detailed response to «»ponsiWe directly for aU of 

in trie country's own Cliallenge this escalation of politically Ws ills. . .. 

security forces. motivated violence, but also the Under this pressure, the PCI 



Restate, as indeed its perpetrators even in. the ' present 

have- lb _ 

h r? of claim, issued under, the label, tial dangers. Italy ..rafter all. 


t- noted in their first statement emergency may-tare-lb PotS a ?*i. of P^h^ tenrorian, in- coupled with the general politicians right now is not just mentary activity on the’ Left, luck, demanding actual cabinet 
' - ’ - ? - - ter is cludu^ the murder of judges political instability of the past ‘ 


whole atmosphere. And yet the fear of the future support for extra-pa rli a- leadership decided to chance its 


.. .. -ui uouu, isaueu uuuci ufc umpi qu nmg prn - iibi j -iitwi- mi, is , . . - um—^ v -* r—- f° r the challenge from Bo-far is the arrival of the Com- seats id- exchange for its con- 

. . .. v ••• .*;3of the : ultra-left Bed Brigade i country whose poiitiemns give . . fcneeca ^ pin ® of _ party decade, has undermined unseen sources and individuals munists after some SO years tinned voting support The 

-.t ,- terrorist orgaoisation. Italian a great deal of rhiettoric to anti- hmctiomries, and even of some seriously the public's respect to their authority and the into the governing process here Andreotti Government fell in 

.v . ..^.politicians, almost to' a man, fascist view& hdLsohte cases at i° uitaaiists - «spo“e then for law and order, as repre- future of a democratic State, in Italy. This is still a good January as a direct result and, 

,., r .. .-- 'finally took the i ^wy t to - »T»»tr 'nwn qnog. by the country’s political forces seated through the present There are also fears in some way short of the PCFs ironically, it was Sig. Moro in 

'. ‘ling in unusual unison that the tionable past- in the^ Mussolini was generally a noisy tiit-4ut institutions which, themselves, DC quarters that Sig. Moro, cherished “historical compro- large measure who worked out 

. C terrorists- had now.; declared «u- but many of vM«»se ■people ^ rather halfhearted asset- are generally controlled by the under the persuasion of modern mise.” or grand alliance in the new formula, bringing the 

but still outside the 

_ _____ was." a classical 

.? ^ m ^Mnt^anyVtfay”^s how the iftay welT’ exceeff The ; 2im": ni-en; supported by atony units, questionable morality the ship potentially incriminating evi- vance for the Communists, and Italian solution to an obvious 

T - —state and its potith^l forces' people who voted 1 : for the far are concocting' a massive drag- of state for three decades, dence against men who have it has come about despite the parliamentary impasse, and last 



month Sig. Andreotti- was able 
to put together another admini- 
stration which, in its stated 
policies and its personnel, dif- 
fered little from the previous 
one. 

The Communists, or at least 
the Party's top leadership, 
believe they have advanced 
further to eventual direct parti- 
cipation in Government; the 
Christian Democrats insist that 
“we have conceded nothing of 
principle," and some important 
local elections in mid-May will 
be the electorate's first oppor- 
tunity to give judgment on this 
Solomon-like compromise. Each 
of these big parties believes 
that its popular vote will 
increase, thus continuing the 
electoral polarisation evident in 
the last national contest, but 
the odds probably favour the 
DC. perhaps even more so- now. 
since the party seems certain 
to campaign on a strong law- 
and-order ticket in the vbke of 
the Mono kidnapping. The PCI, 
for its part, could have some 
difficulty in explaining to its 
supporters precisely what has 
been achieved in terms of the 
Party's main policy planks. 

But this compromise has 
another important implication, 
for it risks creating a vacuum 
on the far Left, now that the 
Communists “have gone re- 
r ‘ibte.” and it is this vadium 
which extra - parliamentary 
forces may seek to fill, suppor- 
ted by terrorist groups, such as 
the Red Brigades, who make no 
secret of their views that the 
PCI has “gone soft" on revo- 
lutionary policies, “ on the great 
struggle of the workers.” It may 
have a hollow ring at a distance, 
but in the political, social and 

CONTINUED ON PAGE II! 


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All business ways ^dd to 








SPECIALIZED TRADE SHOWS FROM APRIL TO DECEMBER 1978 



37th MIFED - International Film, TVfilm & Documentary 
Market - list International Documentary Filrr\ Festival 
"The child in our time" -April 14-23 


3rd EUROLUCE - International Lighting Salon 

September 22-27 


MIDO 78 ■ International Exhibition of Optical, Optome- 
tric and Ophtalmic Goods MaV 6-9 


MODIT - Exhibition of Ready-made Clothes Fashions, 
Hosiery & Dress Accessories 

October (date to be announced) 


RI-PLAST 78 - Reinforced Plastics Exhibition -Confer- 
ence May H-"M 


Hth BI-MU - Biennal Machine Tools Exhibition 

October 7-14 


INTERBIMALL 78 - 6th International Biennial Exhibition 
of Timber- & Woodworking Machinery & Accessories 

May 13-20 


SUMMER MIAS 78 - International Market for Sporting 
& Camping Equipment October 8-10 


6th SASMIL - International Exhibition of Semi-finished 
Products & Accessories for the Manufacture of Furniture, 
Upholstery & Wooden Articles May 13-20 


SICURINT 78 - 9th Exhibition-Conference: Appliances 
& Equipment for Safety & Health in Industry . 

5th Exhibition of Equipment & Appliances for Civil Pro- 
tection & Fire Service October 10-14 


EXPO ITA 78 - international Exhibition of Heat & Sound 
Insulation & of Waterproofing May 16-20 


38th MIFED - International Film, TVfilm and Documentary 
Market October 16 -.27 


STAR 78 - International Trade Show of Carpets & Fur- 
nishing Fabrics May 19-23 


-,-r 
. j Cot ^ 


SIMAC 78 - Italian Fashion Preview - International Exhi- 
bition of Boot & Shoemaking Machines & Machinery 
for Tanning - Skins & Hides, Accessaries, Synthetic 
Products, Model Designs May 27-30 


iNTERSAN - International Orthopaedics Exhibition - 
Medical Techniques - Surgical Instruments & Equipment 
- Equipment for Hospitals - Physioelectromedical Appli- 
ances - Corsetry - Hygiene Articles for Infants 

October 21-23 


SELE-PEL - Selected Exhibition of Handbags & Leather 
Gases October 21-24 




33rd MIPEL- Italian Leather Goods Market (Internation- 
al Salon) June. 9-13 


8th MIPAN - International Exhibition of Machinery, 
Plant & Accessories for Making Bread & Confectionery 

October 28 - November 5 


IS-*., 

• i 





TRADE FAIR 


ESMA-EUROTRJCOT * European Hosiery & Knitwear 
Salon June 13-16 


EXPO COMMERCIO 78 - 13th International Exhibition of 
Commerce Equipment October 29 - November 5 




.ttiais 


^torag® 1 


tna 




the answer to your questions: 
who to produce for, what to produce, 
how much to produce. 

In a twelve-month cycle: 

10 days of general Trade Fair from 
14 to 23 April 

335 days for 56 specialized trade shows 


SAMAB 78 - Exhibition of Machines & Accessories for 
the Clothing Industry June 16-20 


EB.E. - 8th European Drinks Exhibition 

October 29 - November 5 


10th MICAM - 42nd International Exhibition of Footwear, 
Leather & Accessories September 1-4 


8th SIPRAL - Food Products Exhibition 

October 29 - November 5 


International Music Salon - High Fkiefity September 7-11 


ERTEL 4 - European Radio, TV and Electroacoustics 
Exhibition . September 7-11 


ANTI-POLLUTION 78 - 5th' International Exhibition-Con- 
ference on Techniques, Plant & Installations for Water 
& Air Purification, Soil Decontamination & Refuse 
Disposal October 31 - November 4 


..Ml 
•% 


AUTUMN CHI-BI 78 - International Salon of Bijouterie, 
Fancy-Goods & Sales Promotion Articles 

September 8-12 


15th BIAS - Biennal International 'Exhibition-Gonf erence: 
Automation & instrumentation • November 21-25 


6th International Exhibition for the Chemical Industries 
and MAC 78 November 21-25 


> 

d- 



: For information: 

Fiera di Milano, Largo Domodossola 1 
■' 20145 Milano (Italy) ' 

Telex 37360 Fieramll 
Cable Rera-Milano 
or Milan Fair Representative; 

V' Dr. Vittorio ScWazzaho 

20 Savile Row; London W1X 2DQ 
01-73424H 


AUTUMN MACEF 78 - International Exhibition of House- 
hold Goods, Glass & Chinaware, Silverware, Gift Arti- 
cles, Hardware & Tools September 8-12 


SMAU 78 - International Exhibition of Office Furniture, 
Machines & Appliances September 21-26 


MANUTENZIONE 78 -Exhibffion-Conferen'ce: Materials; 
Equipment & Products for Maintenance, Cleanliness & 
Hygiene in Industry & Community Life _ _ 

November 23-27 


18th Italian FurnHwe Salon - 7th Intemationcd Furniture 
Salon . September 22-27 


The Milan Fair Organization declines responsibility for 
any changes in the dates announced os above by the 
respective Committees of these -Exhibitions and Trade 
Shows. 





OTTTTKrSrST'.T* 











18 


ITALY n 


nmeflir limes Tuesday Apffl* 4-; ^ 


•TECHNICAL-ECONOMIC FEASIBILITY STUDIES 

• ENGINEERING 

• SUPPLY, ERECTION, CIVIL WORKS 

• TRAINING OF PERSONNEL 

• STARTING-UP 
•ASSISTANCE IN OPERATION 


ITALIMPIANTI 

societa italiana impianti p.a. 


ffir 


DESIGNS AND CONSTRUCTS 
INDUSTRIAL PLANTS 
WORLDWIDE FOR 

IRON AND STEELMAKiNG, NONFERROUS, 
ENVIRONMENT PROTECTION, CEMENT, 
SEAWATER DESALTING, POWER GENERATION,- 
FOOD, SHIPBUILDING, AUTOMOTIVE, MINING, 
REGIONAL INDUSTRIAL PLANNING 



IT ALIMPI ANTI's most recent success 
is the work commissioned by NISIC — 
National Iranian Steel Industry Co. - 
for the design and construction of the 

"bandar ABBAS 
IRON AND STEEL COMPLEX, 

scheduled to produce 3,000,000 tons 
per year of liquid steel - from iron 
ore to finished products. 


Haad OMc* and Ml Mtoagamme 

Hub ncapMaSL I6I21 Gmaluiy.Trf. 5SBBV lh2KM/X72R/2nS2/2HMWmp 
Ttunmr IHninfinrTWiiiWif BrahHaMftoikJnmVSiaFWoATihm 


tfU-RNSTDEH GROUP 


O 



Left: Police search a motortsfat one of hundreds of road blocks set.tcpxki 
the search for the kidnappers of former Prime Minister- Aide Moro. Aboo 
- meeting of party leaders at Chigi Palace last month. 


Political battles 


A RECENT speedi in the north- 
ern industrial city of Turin by 
Sig. Enrico Berlinguer, the 
Communist Party (PCI) leader, 
contained an important (policy) 
phrase which, almost under- 
standably, the cartoonists and 
the less professional humorists 
caught on to— and exploited — 
immediately. Sig. Berlinguer, 
speaking of the urgent need 
for political and social change, 
but conscious of the escalating 
politically-motivated violence 
throughout the country, and not 
least in Turin itself, told his 
supporters that the Communists 
had simultaneously to be both 
“-revolutionary and conserva- 
tive.'' Yes, quipped one media 
humorist, revolutionary in grab- 
bing power and conservative in 
holding on to it ! 

It was not a friendly com- 
ment on the largest Communist 
Party in the west, nor was it 
meant to be, but it does under- 
line yet again one of the PCTs 
greatest electoral handicaps— its 
lack of total credibility. True, 
this “credibility gap" has not 
prevented the party from mak- 
ing a more or less consistent 
electoral advance over the past 


30 years, to the present point 
where it commands the support 
of some one in three of the 
popular vote (more than 12m. 
Italians voted Communist in 
the last general election), 1 but 
it is almost certainly the major 
factor which denied to the PCI 
a plurality in the 1976 national 
poll, and it could well do so 
again next time. 

For despite the repeated 
insistence to the contrary of 
Sig. Berlinguer and the party 
leadership as . a whole and, 
given Its ideological inspiration, 
its often courageous opposition 
to aspects of Soviet Union 
policy, there are clearly many 
Italian voters who still do not 
accept that the PCI is commit- 
ted firmly and irrevocably to 
democratic pluralism and to the 
normal operations of a parlia- 
mentary democracy. Some of 
them actually do vote for the 
PCI but, on this important ques- 
tion at least with their fingers 
crossed. Put another way. which 
is substantially the same argu- 
ment — but not quite — there are 
a great many Italians who are 
convinced that the Communist 
Party under almost any other 



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It has a yearly processing capacity o! IS miifion 

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of refined products that can meet every requirement. 



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name would have secured cal and democratic respect- 
power on its own years "ago, ability, and a platform’ frocp 
They are probably correct, for which to move on, having 
30 years of generally Inefficient established as it were 
and often downright corrupt operationally its democratic 
Government by the Christian credentials, to atm at securing 
Democrats (DC) would not power alone, 
ordinarily constitute mneb elec- jf ^ j^eed is the party's 
toral opposition for a competent, ^ _ and. securing 

efficient and honest political ud holding power is surely 
party- what all party politics is about 

In that sense, its very name —then securing the' com-' 
is the PCTs biggest electoral dis- promesso is for the PCX an 
advantage, but then the name essential halfway . house along 
is but a reflection of the policy the road. It may not be the' only 
fact, whether deep down the one, but for the moment anyway 
real Moscow Communism, or it remains the objective -of the 
tbat special and often conflicting’ Italian Co mmunist Party It is 
brand of Eurocommunism which essentially the Berlinguer 
the Italian party invented. The policy, and It is worth a mention 
PCI can get rid of Sig. Ber- here that his own .leadership 
linguer, although there are no might very well not survive a 
current indications that it formal dropping of the com- 
intends to in the foreseeable promesso storica ior . an 
future, but it can hardly sur- alternative approach. • . 
vive a change of name and ; Y et ^ a plat fonn t the 
remain intact, either in its compromise is in at least one 
leadership or at its base the important respect a negative 
2.7m. card-carrying members po j£y for the PCI, negative in 
who, ultimately, are the party, ^ie sense that, it .can never 4 be 
In truth, there is an impasse, realised by the party itself -as 
• m . . such. Of course, ^nd not just 

rWion here ItaJ y* opposition parties 

do assemble policy platforms 
In a way, that is what the which frequently take on a very 
compromesso storico. the his- different shape when faced with 
torical compromise. Is all about, the realities of actual goyern- 
the PCI's grand design for a ment, but it- must surely be 
coalition of all th'e democratic unique for a major political 
forces in the country, a kind of party such as the PCI to have at 
grand coalition to rule Italy, the core of its platform the 
Of course the experience in realisation of -an objective which 
Chile was also an argument In can only be secured through a 
its favour, and Sig. Berlinguer direct concession by Its political 
is on record — appropriately opponents. It is the Christian 

enough, in his published Democrats alone who can con- 
“Reflections after events in cede the compromesso to .-the 
Chile” — to the effect that “it Communists, since without the 
would be illusory to think that, DC there can be no historical 
even if the Left-wing parties compromise, 
and forces (in Italy) succeeded What the events of recent 
in gaining 51 per cent, of the weeks here have demonstrated, 
vote and seats in parliament, during the prolonged search for 
this fact would guarantee the a new government, is precisely 
survival and work of a that the Christian Democrats— 
government repress tiling 51 per as of now anyway— are certainly 
““t” in no mood to concede a direct 

But this is much more than share in power to the PCL The 
the strongly implied hint that noisy and. often very, angry 
the Americans might interfere, private debate within the DC 
directly or otherwise, to ensure partiamentary party during the 
that such a Left-wing adminis- protracted government crisis 
tration did not work, or tbat showed that an acceptance of 
Italy might be thrown out of Communist votes In support of a 
Nato or the EEC. or even that new minority DC administration 
a civil war of sorts would erupt was as far as a good half of the 
within Italy itself. It is, of Christian Democrat party was 
course, also all of these con- prepared to go, and even that 
siderations, but the projected with very great reluctance. It is 
compromise is essentially? the arguable, and perhaps somewhat 
antidote to the PCTs credibility academic at this particular time, 
gap. Partnership in Govern- just what the main body of DC 
ment for the Communists would opinion would favour in the 
bring the party a sort of politi- event of the PCI emerging from 


new. elections as Italy’s largest averse to the use df - : 
single -political party, but there for political ends are se 
are some indications that many .fill the gap. This for . : 
deputies — especially those is a real risk, poce:th e. * 
elected for the first time in 1976 central committee men =. 
—would favour (reluctantly) Gian Carlo Pajeflm'^ . 
their party going .into opposition Left of the 'PCI, to tts 
for the first time rather than Bat where esaSr Qy} 
concede the compromesso alternative policy? Tin 
’ storico. Those forces could well Sig. Berlinguer has reg) 
increase as time goes on. not always consistently. 

- Is it- likely, then, that the strated its determinate- - 
I talian C ommunis t Party may independently of : ..’ V ■ 
consider a new approach, per- demands, but for the-’- -’ 
haps even setting it tentatively there is no breaking of :: 
in train in the -run up to next even if the Italian pa 
year's National Congress? . It not look to Moscow for. * 
should - hot be discounted, to the true 'Conmmnl 
although its likelihood, andeer- preferring: . instead, t ; 
t ain ly the timing of any such through its own Italian 
change, could well be.influenced ' . . ■ 

iri considerable measure by ffljarifjpc; 
events outside Italy itself. . It is V uai T® VJ r . ‘p- 
na secret that the existingpoticy Yet in Moscow, then. _ - 

of , the- compromessQ is . not. men still in commando- 
endorsed wholeheartedly by the 1980s will surely brim 
complete leadership .of the PCI, ant changes there, mid. '. ; 
and this divide has been even also in Italy: Maybe the .7 ■ 
more _ marked by ; Sig.' parly will break 'first Jr 
Berlihgq/erisr initial .decision inr could well follow; and v - • 
directly to- support a Christian forecast qt this .time, 
Democrat minority Government ately after their di$ar ~ 
through a policy of abstention electoral -perfonnani?- 
in parliament on key votes, ■ an (h could also - happen wi - 
now by. the party’s. formal entry French Communist . . 
into thepariiamentary majority. Within" the Italian ’ 
There are also arguments with* camp, too, there ,are^ . 
in toe £CFs central committee coating, and one mnstjo : : 
on ^economic matters,' not =. air that the PCI was .fay 
members supporting toe present 1921 by a .breakswai . 
policy, which- owes much more from' the . Socialist .$ - 
to Keynes than to Marx. , Most formal PCI break with-. ~ 
of all, perhaps, there is .con- inightin time' lead, to' 4 : . _ 
fusion, at. tiie base, rank-and-file ment on the political L.-- 
PCI members being more in- social democrat lines, : - 
terested in revolution than in the so-called * left alte 
conservatism. Many of them are to Christian democrat-’ 
now unable to rationalise their and more credible ebaic' 
membership . of .'a - declared electorate. — 

revolutionary party with - its Finally, there is ah 
support of a Cbristiau Democrat risk of a reaction to 
administration which is essen- whose time has gone; ' - 
tially conservative. munist ■ support &u- .. 

. ■ ‘■. j ceivably be dose to its : , - 

Flici 7h« cinn " ' even have passed h} ■ . . 

L/IMliUMUU is anything like senocE v - . 

There is also a degree of dis-' and ’ renewal 'within^ - 
illusion that in- those areas Party over the next fc': 
where the PCL ‘dither alone or .Novelty can be_-a t. 
with ‘the support .of tiie social- Italian political life. - -*? ._ 

ists, -has regional autiiority, -the how .’ even the co 
expected— irrationally, but ex- challenge’ is becomujl. 
pected nonetheless— transform*- old bat. It is- an «fl-. ' 
tion, the promised land, has not verdict on the- , ’ 

arrived.' Naples is a case in Christian Democrats 1 ^ 

point- which is analysed else- party is always in deep 
where in this survey- -As toe always divided, J . . 
Communists move - more towards this has been true, with, 
the governing process, although dead man’s grip ol no • 
at national level still, formally to power managing toi • 
short of actual participation, party together. Clearly 
there, is the real risk qf :a it not the only 
vacuum on toe -political Left party with real- prooea . , 
and there-are.^ready signs that: j. 

extra-pariiamentary forces not UQfflllUUH; 



LSTITUTO MOBIUARE 
ITALIA.NO .. .. . ... . I 

INDUSTRIAL FINANCE 

a broad range of specialised fi n an c ia l services . . / 

— Medium- and long-term financing for industrial, investment: . 

* at market rates ‘ : . 

* at low-interest rates (small and medium enterprises. Southern Italy, depressed areas or waum 

Northern Italy, etc.) • ' ' 

— Equity participations •. 

— Aid for industrial research and development " 

— Shipping finance 

— Financial assistance for the promotion of Italian exports and activities abroad (export ere 
financing; buyer credit) 

— Loans in foreign currencies - * . • - : == 

— Technical and -financial consulting and assistance services, eitoer directly -or through, affilto. 

companies: specialised short- and medium-term financing; .l e a sin g; underwriting; economic - - 

and researches; technical and financial consulting; introduction of -Italian enterprises on i®®*" 
financial markets; mutual Investment funds; auditing; trusteeships . 
rvri raises funds on the Italian and foreign capital markets principally by floating bonds whldi are listed .. 
tliu stock exchange and .very popular among small and large investors. - 

Subscribed capital and reserves: 705 billion Lire ■" “ ' ■’ ■ Vi«-«i?4SBaL * 

Loans outstanding including special operations as of December 31. 1977: 10,882 : bmion Lire * a 
P laced or outstanding bonds as of December 31. 1977: 8,522 billion Lire = $9,81 3m. • , • : 

Other medium-term borrowings as of December 31. 1977: 1,220 billion Lire = $l,400m. 

Head Office: 25 Vijilc deU’Arte— 001« Rome, Italy 
Representative Office at: 5 Cheapsidc. LONDON EC2V 6AA 
Telephone: 248 1091/2/3/4. Telex: 887671 1HH London ...’ . 

Other Representative OJJices in Washington, Zurich, Brussels, Mexico Cit?. . . 

Regional Ogices in Milan, Turin, Genoa. Padua, Venice, Bologna, Florence, Rome. Ban, Naples. 

Monetary values in U.S. dollars were calculated at the exchange rate of Lit. S71.55 to the UA ^“*5 


Catania- 


t 







19 


m recession 


t 


jl* 


ES; ... .... •. . • ; r •. .... • 

VgrowQi ate last > : " t ? 
jte.#: 1 ** than 2: p« .cent, : - 
Smpared with 5.6 percent the •' ■ ! 1 

ions . year, and ended 1977 
.a. sharply - reduced trade 

gEEEyW ^r.Wbfr.a&dnst Janraoy . . 
^g«* thaat ; doTxbleL that figure a ■ 

earlier). . And the balance ~ 

‘ ■ mwnenta . - . On - - current : 

uniqroly, ^ -recent 

i^s year Italy was able -to iwir '3®^' 
on sehedule^-from’ its ^ 
increased' 



ECONOMIC INDICATORS 


TT 


Industrial production 
. 1976 1977 

+ U +18J. 


Consumer prices 
1976 1977 

+ 1.1 + 14 


+ 44 


+m 


+ L9 


- ■ - ■ ■— on the wages front., now that 

the trade unions are talking in 

more moderate terms. A 

Labour costs number of big national labour 
1976 1977 contracts come up lor renewal 

+ 9.7 + 0.5 later this year, and for the 

2 5 +51 momen t anyway Confindustria. 


.+• 94 


+ 8 4 


— - ; — ' 1 for one, is putting little hope in 

+ 7.6 .. + —0 + . 1*3 + 0-1 + 0-1 promises and protestations of 


+ 44 


+ 2.6 


+ L2 


+ 3.2 


■- vjf Tto- , 

rsi- 


+133 


- 03 


+ 2 jO 


+ 1.2 


+ 7.9 


+ 04 moderation, preferring to wait 
and see the “coluur of theis 


+ 34 


^‘°:-mr+ll.6. 


- 34 


+ 04 


+ 0.7 


demands/ 


___ :reanre s.-“Bwne 

.fJ5Qni. off * . 1974 EEC ttab 

$1.4bm, $368m. to ' the Inter; 

'' rational Monetary Fbm <tot\ . 

■ SSSSSk" m ***■<**** »*** 


+1L6 



“ 44 


+ 04 


+ 0.6 


+ 24 


y Unquestionably, 


+164 


- 0.4 


+ LI 


+ 04 


+ 5.7 


•+15LX 


- 34 


+ 1.7 


+ 14 


- r 


+114 


.I'J^OTcmber . . . -£?&- +13.8 


- 54 


+ 24 


+ 14 


'iiOT 


- 8J L 
-134~ 


+ 24 
+ L3 


+ L0 
+ 04 


+ 3.1 
+ 0.1 


wuefes s Pt 

flioiah. 


ject of. same month in tlm previous year. 


Superficially ar I e-ra* ff w 

■not been a bad performance December .T.^^ . +l 9.7 

for a country . wW^.vin . ^^atfafidns f4jdd)s^x 
previoua -.year . had . recurring ^ N r, 

political v and : foreign exchange • • .• 1 . . 

crises and a 'premature general '• 

election which left a r«5 stale- stnctive oae?! ^ ■ ■ there is a fair measure of agree- Confindustria and the big 

mate and no basis for the forma* Apart from' fate there is the ment in private that the Baffi labour confederations are far 
tioh -of- a majority Government 1 ?® wa v Parameters " i are indeed reaL . from happy with this whole unions 

Ad(fitipnaUy / iind<^rt!acings ^en Ye V the Communists in approach, both insisting that the re i ert hut peripheral 

both to the EEC and tmt? ™e .central- .bank governor, particular, but also the smaller „ “ .. . changes .seeing in the so-called 

did hit their ma^ta^etehithe . the ****** from Socialist Party, Teel under strong country must aim immediately KArtln >nlA!ailn nW>r>a/1i<«A 4Wn*t> 


. . . . there is a 

+ 0 4 real risk that a farther sharp 
+ 3.8 escalation in Italian labour costs 

■■ could undermine the competive- 

— ness of Italian exports, a pro- 

jfJJ.l cess which has been taking 
+ 3.0 place gradually in any event, 
but which has been partly in- 

terrupted through exchange 

rate adjustments. 

The present Government 

would like to see some altera- 
tions in the present national 
wage indexation system, hut the 
are almost certain to 


seals mobile procedure their 

course of 1977,- and there was imvt vev^u years or trade union pressure to support «*■ - one real guarantee against an 

some marginal improvement m were^marfced by severe a growth rate which can take up presumably leaning on the eros j on of re al wages through 

the mfla«m> T> a f+-Ju cjidkaa difficWties, ttie real rate the present industrial slack and reserves where necessary. But inflation> The quarterly ad just- 

od- j’Hnrth of Use (Italian) do something to tackle .the — e reserves, greatly enhanced in wage levels in line 

unemployment ” ao, J r ar ®> w hen com- increases in. the cost-of- 

is -in great measure a 


But it has been a year of only 


relative success uSTflut econOBft y wa» jast mder 5 per deteriorating • unemployment mou § 

been adfievSSn^L^ cS ; <wer t§e /5ast three situation. No. .parly has put a pared with the foreign exchange , iving is . ia sreat „ 

All the signs now are that Italy 7ears J ^_ en . j., _ ^ \m . . .. ^ ^ h ; i i " Ka Mf Unit-v ai ^ ncvCMUdin 3 infliiioofli j c B fCle, 


is in a real recession.’l^duMrt^ J)er 06111 of - &e national growth objective, on its . be against Italy s out- _ but 3S ^ nmv there is no ob- 

output cornered rigidity of labour costs, it must parliamentaty support for the debts * including those vious support Tor the proposal 

w ™ be presumed that pursuance of Andreotti government, but an commercial banking of the veteran Republican Party 

m total now i eat ier, Sig. Ugo la Malfa, who 

ww»« — . *- a^. . bmtfthbMli j S advocating 

decline ^jj e D . countries, . economy should aim to be grow- admittedly roughly $2bn. less 


a “ social con- 
aloijg British lines. Even 


rpr^'-* T.-v inn . corresnnndmpr mnnth oe pxesumea xnax pursuance oi Anareora government nut an 

W*tn« pc iSudng the informal consensus haT emerged system These i 
\r- 15 ^ Aurii aaA rate of infiatka^. t<K the average which envisages that the Italian amount to 91/. #1 

» rwf*%k Bfir! actually ^ecefCTatS other countries,, economy should aim to be grow- f dnutl t ed i y ^ uu - ie ?* tract oui. M . i,nes. mu 

• «. ..U' *'..!***: sSSTseDtemb^^ ““ d **&*?*& '&*■ » "balanced ing at a rate in excess of 4. per at l thc ca f ? f , la 5 l!* r ' In Prime Minister Andreotti has 

exceptional 134 t«*r ewnt r * current account then sur- cent by the end of this year. 1978 alone, Italy s debt-repay- sa j(j that circumstances in Italy 
iT^SSber' *JSS. Pluses with which..io repay part Given the almost certain commitments amount to . <are not risht .- for SU(;h m 
- .^hen seasonal ^ ^ forefeu Joans we have .marginal growth in the first half, IAOOObn or about £2.5bn., accor d, although he left the 


■“? Paiet? 
:na pcu 4 

„ E -‘ wswe Q3*, 
l.crr.avva police? ^ 
u- Bcrlmruerhsag. 

3-*iys cnwiflHnJ: 
^wU r. ;•> 

:r :-.nr:r qj 5 

:- ji fo r jj,*. 
‘!'.Tf .> r.-j Lrea-ODj at 


heim WW Md» . ^.7nT- me iomiw niams wc nave .marginal growui in tne nrst nair, — 

* eaaan W** * contacted . will not, at the pre- if indeed any at all. this sug- although there are hopes that impression mat the bar- 

01 me espfamWMiL . vaaing terms of trade between gests sizeable reflationary s^e P art commitment ri er was not one of desirabUity, 

Mirrored 


.Sooda. and raw activity in the last two quarters 
the annual of 1978. 


K2 
0 ;"re 


iTalizs pc 
• Mcscwful 
*. rmmaEt 

IZiirjd 1 
■ cwn itaSa* 


'hanses 


S' 

j.'-w as: 


materials, ... r 

1 growth rate ^lcUe v ab#»ve 3 per ”«rh e question is how. since mOTts have already been made 
.. • Not surprisingly, this decline cent in the few. years.” a, e sharp .improvement last FmaUy » what of 1110 prospects 

was mirrored in the number .of . True, not-'. eve ryone , here on the payments .account 
people out of work.- The tptal ^cccpts the^ Gowraor's assess- ^as largely. cyclical, as demon- 
of wholly unemployed ^ at ment^ and uie ^TOree years he strated by the direct relation- 
year-end was !L5im, or an wa ? referring td were 1973-75, sb jp between righting the bal- 
officklly calculated jobless rate indeed-' la st year itself did an r» p of payments account and 

of 7.1 per cent, against 64 perljri^fi ®bme jmgwremmit in the the weakening of production. 

•cent >12 months earlier. . Even- wnts of trade, JBm his under- ciearly, there. still are no signs 
4 more alarmingly. Some thrtie in ^”8 01 ? e of any real advance towards 

four., of all ' unemployed* [.-are. year 13 surely structural solutions capable of 

young people ttnder‘29 yearSOf 001 ^ 61 cycle is reconciling for Italy external 

age, 41 per-cent irf , whom. are aJways . an _econoimc manage- equilibrium with a more. than 
said, to have had higher edtica- SS? fgr™nla,^and-not only for meagre growth rate. However, 


will be rolled over, and, as but the impossibility of achiev- 
io cheated earlier, some repay- 


ing it 


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the outline programme agreed 


, , . tkra. The potential .here: of bere u<e vuuuk 

. 5-jrc.y d.^: c^rse: is not just. fdr sodal'^??ff?^ eff®^.'r°_ Secure between the political parties 

:^re.ad; distress, but for violent reaction, a - TiP" claimed to represent some 

" *" l ':'( 'and'.Itidy has- had its of'Sl *^ 0 ^ i ? O 5Sh^5 y - , T £f change in 'approach. What is 

v,;.. :r-.-s<saic that. too„;in the : yoimiTaf • te. -Sffi' s ^sested -are measures to 

- 1 ' ■*• - ek year! ' - ' 1- ’ ’x ^ t stimuJato the -economy, through 

* rtbasi- ';In : his :1 0 Wn ^ additional - investment and pub- 

::e:r ^ bn national economic manage- £*4 J , 'J2''22°!S2*2r Reworks, and at the same time 

*; ‘ f «*> itaiy,Pri Brh^^ SEES *** Testraint 

SZ Coimnendable 

put the recent record succiii^y:. abtjon^jtemployer organisation, . . . 

“Italy succeeded jart yfeZr ,in and.-tbe trade unions on the .. , As a theoretical exercise, the 
steenngvzts fore^n treae^KK preri^e ■ shape of - economic approadi is , highly commend- 
tion close to . bmance wiuiOHt p<^y fbr this year and next, abie, embodying the concept of 


4; -»■* 

w r,l \ ; 

tr-.- 

\\ 


tr.e Itilia t 


tf »-0! j.i j ••.if--- 

:: . PCI '•*« 



r;, 


.. 7- umwiiuMiw/,- «uuuj.<uuc growtn rate or just apour x per 

j. rv . .. V ; . . • ’<»■ ^ achievemant. was Jranatoe^iit eent^ peihaps a fraction more, 

,^y“' the -price of choking, off .rather depending on demand actually : 

■ -tfrhjph ' Ia.’j 1 IV. 4V_a. 


T . 


i use of -the •monetary' weapon. ; Andreofitl was postulating a 1978 turn- hi the direction 'of virtue 
Unfortnaately;- this admirable growth rate of just about 2 per by a'country which for. too long 

• . .. »- - - bis Jieen ’. following wayward 

„ , _ _ yrays in ecoxionuc management. 

hc-:3i prematurely the recovery W^ach generated by the three worid But the reality may be some- 

had come after lhe 1975 l ie-^ “locomotives” the West thing different For example, 

cession-”... . Germany and Japan. : . the .projected 1978 ..enlarged 

- 'i This, in. its 'iown w^, is : a , Tlfis target is now revised up- public sector deficit, on the 

I.::'*' tribute- to the Bank of Italy wards by the new minority DC basis of .unchanged policies, 

rat i- -which, given ••• the occasional administration,- again under Sig has come out in the traditional 

•- absence here of any-GoVernment Andreotti,' ~ as. part of the ( model in excess of L3I,000bn., 

^ ajx, and the more regular political package which has or getting on for £20bn.‘ All 

ncriflds of political stalemate, brought the Communist (PCI) V parties have agreed— some 



XV- ■ 


j’.cri 





economic 






(■flli 1 * i 


& 


■ ■■■ Treasury finance and "budget cratshave lost a-degree of direct to which Italy is stHl answer- 

portfotioa .^ Since monetary in- control ov» the management of able. • • : : 

strum ents are all that are avail- economic policy, and the revised There has been much less 
able to the bank, they Inevitably 1978 budget, which will be uh- agreement on how to cut back 
a -‘ s the main burden of eco- veiled finally within the next fi,e deficit covering tbe public 

. * w— . ' f mui mj unTl Ka ita vii milpl) AVI- AfliefAtk P+a+a onintroo tha SOClfll 

State 
must 

Af ./AWM aw pm and- aavo UWU. JOUU« i — “W «TT 1 u«. U1A& wauovi to see 

numhe rigid constraints. Each as notur- the exact details, and even then 

xaous to advocate the they are likely to be less than 
_ possible rate of growth precise, but the parties have 
wdtimut opfliU&g off another «&- -come up .with a general recipe. 

and on balance This could be described as the 

- three-three-three formula, since 

. . i[ . . . . -It reportedly provides for an 

■ CONTjNUH) WtOH-.FAGE .1 L . . - .- additional (in round terms) 

L3,000bm in' new taxes, spend- 
-. ing cuts of roughly an equal 
. sum, in large measure. on social 
Welfare payments and through 
higher charges for the services 
. ' fl^pqme public, utilities, and a 
postponement until next year 

terms of to-day’s recourse to exceptional mea- /another L3,000bn. in pro- 

Italy if could command quite sores of law enforcement, it may jefcted projects. All told, and 
a few recruits^ most of whom no . be too late. Meeting it will not after allowing for some emer- 
dnnbt would have no wish to just require .' correcting the r gency financial aid to State seo- 
alien themselves with the men “ errors ” - to ' which President tor' companies t in immediate 
of real violence, Imt who do Leone has given general voice, difficulties, the . enlarged 1978 
warn- tn twine about change. but recognising— and providing deficit should, on this scenario, 
We straieEV- of the Red for— le^timate goals Md come, out aronnd L24,000bn. 
Brieades is to bring about a aspirations: of*, a generation; f £J5bn.); or the highest figure 
Spiring backlash in the' which.-feete itself far removed ihwightt to he acceptable to The 
-in response ■ to their from the men ;stiU in power. np*^. 

Sandrrf terror in the hope that It requires many 'things, but But: -which new taxes, and 
the (Smmunist Party itself principally the rfrestablishment what particular spending cuts 
nm utd- then be obiiged.to.jnove of reject ;’Jor. the institutions 'and postponements? There has 
away from its “historical com- of .the. State,, not least for Par- been nothing -definite as yet, 
oromise* formula and its hew- UamentitseU and its politicians, although the Andreotti Goyem- 
fftiTud affinity with the Christian- a government woAIng efSdeutly .mentis dearly going to tty and 
Democrats.' and champion bnce anfl seen to 'he £ree ;of corny* ^ensure that the communists m 
sMiin the “ cause of ' flie tioh, the reasonable prospect of , particnlar are associated directly 
Sters ” in a virtual civil war, a.job for young people pouring through, their . parliamentary 
Forces to the political ‘ on to the kbour market, a pro- votes . with whatever new 
hnfh parliamentary through the perly ntroetured social security -austerity: measures are finally 
MSI and others standing behind system (instead of a multiplicity agreed. Meanwhile, the plugging 
Hi k^otbe^ese to ^ welfare .pensions) and. m of some ^le .Mr ni-rttar 
wST r^ario becammg: -* industry,, particularly the tjst. budgetary Mlculatwns, through 

. *ate secto^a recognition that the doubtful rnediamsm of jpre- 
1 In theory at least; now rth'at merit and. not political loyalti« ^ emptte(and 

main nctioini hi a ATmnritiou. is -the criteria for advancement .taxes, has been . essenually a 


an' 






• ?-• :«S 

MlfF 

■» 


,y .y. 




.&■ *he main ostensible opporition is the criteria. for — — - ■ . .. 

*■ forces have jomed . finally wlto For the enlarged forces backii^ qneoff affair with chickens 

theDC in- an enlarged pariia-. the new* government that is co^ng hometo 

U ‘ CWV '“ ..-V. .. V,™ nr.iryrr rir, With. IS 1H tiie fOITO Of 1C 

Ihe real terms. • This is hardly an 



me ^u., ^ MW goTernmBH that if eo^ne Home to roost n ert ye ar 

mentaiy majority, the jiriapetfs eabugh to be going on within in the form oMower revenue in 
S ioun tty's democraric flie- immeiliate 'future.. The real terms. This is lmrdJy _an 

Forces meeting siicc«sf ally, this- question must surely be whether encouraging prospect for whst- 
chaUengeehcHridbe enhanced: If 'even eow they are up to »* ever^Mding plane- are to be 
it i* not met soon, md without task. 


put back untfl -1979. 


A van crossing a city. A truck crossing a continent A bus carrying tourists, or workers, or. school- 
children. Vehicles named Fiat. OM. Lancia. Unic. Magirus-Deutz. This js the- ,v.-orld oLIveco.. ^ 

Iveco: a world of experience. 






v 


i ' ’ * ^ 

V' , ■ •••. . 



•v. 


- s- 








20 



r-* "ism 



£*.«' irom 19th to 23rd 
| may at the • 
f .Milan Trade Fair 

.fr vii 

'«,&^.;-th , t e . r n.aiipTi a i show .of 

quality -,/£ '. . ■ 

js 6 I'qg'^fabrl C5 of . 

foreign production ' 

■§>%_' 60|^ntanu f a ct u re rs>fr o m 26 ; ' 

-^bjbn t ri es-a w at t y o u at STAR '7-3. 

lt|S INTERNATIONAL 
A FAIR FOR CARPETS 
SMAND HOME TEXTILES 





Founded in 1871 


Registered and Head Office: NOVARA, Italy. 
333 Branches in Northern 
and Central Italy. 

Representative Offices in Brussels, 
Caracas, Frankfurt am Main, London, 

New York, Paris and Zurich. 

As at 31 st December 1977 

Share capital: Lit 6,852,683,000; 

Reserves and Funds: Lit. 170,862,594,396. 


Deposit and current accounts 
over Lit. 5,000 billion. 




ITALY IV 


Financial Times Tuesday April 4‘ aS 7 g- 





a major review 


AT LAST the basic question is 
being asked: as Italy’s vast 
State industry sector any longer 
capable of generating the kind 
of economic growth and . poten- 
tial — not least in’ terms of in- 
creased employment — which the 
country clearly requires as it 
approaches the 1980s? 

In this context this year 
could well turn out to mark a 
watershed in the history of 
Italy's public sector. . The 
dramatic extent of the country’s 
economic and financial crisis, 
hitting in particular the entire 
structure of the country's State 
industries, is currently forcing 
a major review of an economic 
system which only a few years 
ago was generally regarded as 
an example of how nationalised 
industry could be managed on 
private enterprise lines. 

But it is not only the econo- 
mic crisis that has precipitated 
this overall review of the role 
and structure of the State sec- 
tor. In large measure the 
changing political framework of 
the country, with the growing 
influence and power of the 
Communist’ Party, has brought 
with it a substantial transforma- 
tion — if still undefined in its 
precise details— of a key econo- 
mic and political • sector. 

Nearly 45 years after the 
setting up of the giant State- 
controlied Istituto per la Rico- 
struzione Industrial (IRI) 
under Mussolini — with the aim 
of returning credibility to. the 
Italian banking system in the 
1030s and reconstructing the 
industrial base of the country — • 
the basic issue is whether the 
IRI concept is any longer 
economically viable. 

At first glance it would 
appear not. IRI, which controls 
six financial holding companies 
in Italy alone, which in turn 
control something like 180 
operating companies in Italy 
alone, employing 500.000 people 
and with a turnover of 
L12.00Qbn. (£8bn_) last year, 
has managed to accumulate 
debts totalling some L15,000bn., 
or more than half the country’s 
State sector deficit last year.. Its 
steel operations, in the Finsider 
and Italsider group, are enor- 
mous lossmakers. Its Alfa 
Romeo car manufacturing sub- 
sidiary is expected to report 


losses for 1977 of more than 
L140ba. Us shipyards are in the 
red, and so are numerous other 
of its varied industrial 
activities. , 

But it is not only IRI that is 
in trouble. Other State holding 
companies, like the aluminium, 
arms, food processing and 
tourism group, Efim, and the 
State oil group ENI. face 
similar if . somewhat less 
dramatic financial- problems. 
And if this situation is dire, 
the internal top management 
struggles that have erupted 
within these groups are an even 
more .vivid expression of the 
turmoil in which the Italian 
public sector now finds itself. 




Eroded 


In part, the reasons for this 
state of affairs are to be found 
in a long-term process that has 
gradually eroded the industrial 
logic on which the Italian con- 
cept of nationalised industry 
was originally based and trans- 
formed it into what has been 
loosely termed as “political” 
logic . 

At the (beginning, the idea was 
to use a group like IRI as a 
driving force for the indus- 
trialisation of the country. At 
first, IRI did. this job with con- 
siderable success, so much so 
that later it Was taken as a 
model for Britain’s own National 
Enterprise Board. 

Starting off as a huge salvage 
operation to help the troubled 
banking system and put back on 
their feet numerous private 
companies hit by the recession 
of the 'thirties, IRI effectively 
led the industrial transforma- 
tion of file country in the years 
following World War n. It 
maintained the characteristics 
of a rescue group but at the 
same time promoted the de- 
velopment of the steel industry 
— now ' the second largest in 
Western Europe — and a whole 
series of other major industrial 
sectors. 

In the same way ENL especi- 
ally under its charismatic chair- 
man Enrico Mattei..supplied the 
country’s growing energy de- 
mands by building up a size- 
able presence in the oil- 





rX^i-ySwax- x. 


A continuous electrolytic tinning line, part of the c old rolling mill at Italsider’s Oscar Sinqglia works. ~ 



Production of ethical drugs and fine 
chemicals for pharmaceutical industries. 


Licences for patent — products — 
original processes. 


Assistance and technical-scientific 
co-operation for the establishment 
of . chemical and pharmaceutical plants. 

WORLDWIDE SALES ORGANIZATION 



ISTITUTO BI0CHMC0 ITALIAV0 S.p.A 

GIOVANNI LORENZ INI 

20139 MILAN— ITALY 

Via G. Lorenzini, 2-4 

Phone: (02) 5253. Telex 34367 BIOCHMO 26668 IBINORD 
Organization for Africa: 

FARM AFRICA S.p-A. - P. le Duca d’ Aosta, 12 Milan -Italy 
Phone 2041064-2041174 Telex 25224 FARMA 


HU Banco Ambrosiano 


MILAN - VIA CLERIC!, 2 - TELEX 3120* 

Affiliated and Associated Institutions: 

LA CENTRALE FINANZIARfA GENERALE S.p.A. Milan • TORO ASSICURAZJONI S.p.A. 
Turin • BANCA CATTOUCA DEL VENETO S.p-A. Vicenza • CREDITO VARESINO S.p.A. 
Varese • BANCA PASSADORE & C. S-P.A. Genoa • BANCA ROSENBERG COLORNI & 
CO. S.pJ\. Milan • IL PIEMONTE FINANZIARIO S.p.A. Turin • BANCO AMBROSIANO 
HOLDING S.A. Luxemburg • BANCA DEL GOTTARDO S.A. Lugano • CISALPINE 
OVERSEAS BANK LIMITED Nassau • ULTRAF1N A.G. Zurich • ULTRAFIN INTERNA- 
TIONAL CORPORATION New York • AMBROSIANO GROUP(MiddIe East) LTD. Nassau • 
AMBROSIANO GROUP PROMOTION CONSULTING REPRESENTATIVE & TRADING 
CO. Panama • GRUPO AMBROSIANO PROMOCIONES Y SERVICIOS S.A. Buenos Ayres 

A Banco Ambrosiano is a member of the Inter-Alpha Group of Banks which is 
formed by: 

BANCO AMBROSIANO Milan • BERUNER HANDELS -UND FRANKFURTER BANK 
Frankfurt • CREDIT COMMERCIAL DE FRANCE Paris • KREDIETBANK S.A. Bruxelles ■ 
NEDERLANDSCHE MIDDENSTANDBANK N.V. Amsterdam * PRIVATBANKEN A.S. Co- 
penhagen a WILLIAMS & GLYN’S BANK LTD. London • Representative offices in Hong 
Kong, New York, Sao Paulo, Singapore, Teheran, and Tokyo. 



producing countries, launching 
into bold programmes for the 
supply of natural gas directly 
from Russia and often under- 
cutting the traditional “seven 
sisters" on their own territory. 
Though effectively operating 
within the parameters of 
nationalised industry, these 
State conglomerates succeeded 
in blending their “ social ” 
function with the fierce and 
competitive management one 
normally associates with the 
private sector. 

In the mid-fifties things 
started to go wrong, with ** poli- 
tical ’’ rather than ** industrial " 
logic gradually taking the upper 
hand. The system, which had 
so far managed on the whole 
to combine the economic effi- 
ciency of private industry with 
the broader social, economic 
and political objectives of 
nationalised industry, began to 
deteriorate. As the long-ruling 
Christian Democrat Party saw 
itself losing ground to the Com- 
munists, who now for the first 
time in 30 years are directly 
supporting in Parliament a 
Christian Democrat minority 
government, its leaders decided 
to consolidate their hold on the 
State- sector. 

In the State sector they saw 
a means of controlling the polir 
tically most powerful economic 
sector of the country. Through 
the establishment of a special 
Ministry for State Holdings, the 
Christian Democrats sharpened 
their control of the public sec- 
tor. They extended their hold 
through political appointments 
to top State sector jobs. Their 
policies, especially those 


directed to the depressed South, 
which led to the so-called 
“cathedrals in the desert” and 
the encouragement of debt 
fin an dug on a grand scale, -were 
often motivated on purely elec- 
toral grounds. In turn the Com- 
munists stepped -up their 
campaign against the ** old 
school tie” system of running 
the country's public sector; 


Attacks 


After a series of scandals and 
increasing attacks against the 
Christian Democrat “ public 
sector” establishment there 
.have been a series of important 
.changes • during the- last- 12 
months. These were heralded 
by the dismantlement of the 
State minerals agency EGAM 
at the beginning of last year fol- 
lowing the decision- of the 
authorities, and indeed of all 
political parties, tbat it was no 
longer possible to maintain 
against all economic logic 
obsolete industrial activities, 
even within the State sector. 

At the same time, manage- 
ment revolts within indicated 
tbat it W3S no longer possible 
for politicians to control indis- 
criminately the State sector 
companies. The unions for their 
part also increasingly adopted 
more moderate attitudes, first 
towards the dismantlement of 
EGAM, and then, early this 
year, to the liquidation of the 
State food group, Unidal, in re- 
turn for employment guaran- 
tees. 

To a certain extent the various 
political and social forces of the 
country now appear to be 
moving back to the old concept 


on which Italy’s State industry 
was built Certainly the State 
industries, originally designed 
to support and develop essen- 
tially the domestic market, have 
increasingly had to move’ to- 
wards exports. The sharp rise 
in Italian labour and money 
costs has. not helped them. The 
pressures from the unions to 
maintain employment levels 
and increase wage levels, have 
not eased the very considerable 
difficulties of a public sector re- 
conversion programme. The 
energy crisis itself had a severe 
effect on productivity and 
profitability. In a sense -the 
changes^ long overdue, had to. 
come.- . - .-: 

Although it is important to 
point out that the State sector 
contains an enormous wealth Of 
technical and managerial skills 
and enormous assets in terms 
of often ‘ technologically 
advanced and modern plants, it 
is equally important to stress 
that the changes that are now 
taking Place axe in a great 
measure ambiguous. In the first 
place, they seem politically 
motivated, not only in terms of 
the changing relationship 
between the country’s main 
political parties; but also in the 
political evolution of the labour 
movement. 

There is still also consider- 
able resistance to adoption of 
new criteria for an effective 
reconstruction programme — not 
least the introduction of modern 
and internationally acceptable 
accounting and auditing tech- 
niques for State sector balance 
sheets. While leading figures in 
public industry go to great 
length, to point out that their 


The private sector 
calls for growth 


THE CONTINUING rundown in 
Italy's economic momentum — 
strongly emphasised in the 13.3 
per cent, fall in industrial pro- 
duction in December compared 
with the corresponding month 
of the previous year — is causing 
growing concern to the country’s 
private sector, so much so that 
the country's national employers 
organisation. Confindustria, 
Italy's equivalent of the CBI, 
has now launched what it calls 
its “ Operation Growth." 

In-a lengthy document sub- 
mitted to the political author- 
ities and the trade unions, it 
calls for the highest possible 
growth rate without provoking 
a balance of payments crisis. 
It urges a growth rate for the 
whole of calendar 1978 of 4.5 
per cent, instead of the 2 to 3 
per cent earlier envisaged by 
the monetary authorities. 

The document goes on to 
stress the need for urgent 
measures to reduce the cost of 
money and labour, now among 
the highest in any industrial- 
ised Western country. Its chair- 
man, Sig. Guido Car Li, the 
former Governor of the Bank 
of Italy, has — like the veteran 
Republican Party leader, Sig. 
Ugo La Malfa — aJso recently 
advocated the adoption in Italy 
of a social contract on U.K. 
lines. 


The Italian Prime Minister, sector. The Communist Party, 
Sig. Giullio Andreotti. has gone for one, hinted openly that it 
some way to meet the demands favours private enterprise, the 
of the private sector. He has recovery of the capital risk 
indicated tbat his new Govern- market and the general concept 
menfs progra mm e envisages a of -a free market economy, 
growth rate of up to 4.5 per Union leaders claim tbat in re- 
cent. in the last quarter of the turn for investments in new 
year. To help in reducing jobs, they are prepared to ask 
labour costs, his administration their rank and file to make 
proposed to make permanent sacrifices. Through a series of 
the transfer to the Treasury of devices, the Government 
part of the heavy social welfare promises to support private in- 
charges now borne by dustry in its efforts to retain 
employers. competitivity on - foreign 

In this 1978 Budget, yet to markets and assist the more 
be approved by Parliament, Sig. financially troubled sectors like 
Andreotti proposed to promote textiles, chemicals and steel, 
new investments totalling some While welcoming the fact that 
lA.QGOtm. {£2.6 bn.), principally sig. Andreotti consulted the 
aimed at creating new job employers over liis new pro- 
opportunities in the depressed gramme and the apparent shift 
South. At the same time the in trade - union policy, the 
trade unions have professed in private sector os the whole 
recent weeks a willingness to remains profoundly sceptical, 
adopt a more moderate and As one industrialist remarked:' 
realistic line towards wage «au sorts of good intentions are 

negotiations, and to. accept the being mooted at present But 
principle of labour mobility there is little of substance. Can 
and the need to dose down the who already appear 

economically obsolete plants, to be split, guarantee that their 
On the surface at least, all base will accept a moderate 
the signs point towards an line when it comes to renego- 
improvement in industrial re- tiating'tbe main national labour 
lations and a more forceful contracts? WHT the cost of 
commitment from the political money really drop? So far we 
forces to support the private have had to rely snore on our 

CONTINUED ON NEXT PAGE 


companies are still ran 
the lines of private eotei -• 
or at least are revetting t 
principle, there is little' col 
evidence of this. 

Indeed, even the EGAM 
is an example of q State s 
operation of sorts; TboujK 
mantled, most of &e Vi : - 
mineral agency’s subsii - 
have been forced on the' 
State holdings tikelRIan; 

In return for -their (iprw _ 
moderate and accomma 
policies, the trade umar 
asking for investments 
at this time, can only com 
the State sector. In exchai^ 
some „ control : > of ■■ 
economic sector,-the Goon 
Party appears to be preps 
maintain the fiction tin -. 
Slate sector system is effe 
based on a free market eer. 

But although it has;:, 
paigned fiercely again* - : 
abuses of ■ the Ch 
Democrat management: id. 
industry, the Contnmziist 
has effectively never spe 
in detail an alternative rtf . 
or reconstruction progr _ 
The position is as ambsgn. 
that of the Christian Denn : 
It has published as many ■ 
and delivered as many sp 
on the Slate Sector a- 
Christian Democrats, bi . 
proposals have generally 
vaguely set in the medii 
longer term. 1 

The .financial and- straj 
problems of the giant •[ ■ 
private State, but essei 
State, chetmeals and fibre 
glomerate, Montedison, . 
have to be resolved. So t 
future investment progrs 
for the proposed fifth intei 
steel complex at Gibia Ta . 
Calabria, blocked for . 
moment anyway by. 
European Commission, ai ; ^ 
so many other areas of 
industry — reconversion o 
steel sector, the preunota 
food and food proeessir 
dustries in the South an 
countly’5 crucial n . 
energy programme. . . 

In a sense, while the 
questions over the whole i 
the State sector are being 
in 1978. they still represe 
makings of a long-ru 
political " pantomime- Ye- 
issues are crucial, at a ti 

growing unemployment . 
economic recession. Bat 3 
it would be unfair to cfeir 
Italy’s public sector in J 
years has become total!} . 
servient, to a highly £ 
game . of political tenn 
would be -equally so ip sa, 
the Stale system has ». 
some way supported ■_ 
country’s growth in the <h 
years following the ofi- 
While employment in the. I. 
sector, nearly doubled ov£ 
past 10- years.- it has reffl r . 
practically static in prrva 
-dustry as . a whole. But 
wn thanks to the pohticisi 


Pauli 


« i 


Italy 


amj osier latent* * 

UONTfiLY COURSES . . 

m snail 

Intensive lamnwe courses- 
For lnft.QMtlon.PM” 

Centre LtagoWk» Haw 1 ™ 

DanM AlWUf 1 ” 






ir £imes ftfcis&y 


Apnl'4 197S 

ITALY V 



meS ?^ se of w ?f c ? anging P° Iitica l dented live coverage on tele- objective aims and demands of 

f hffl “ ro * to f he ,5f Q y- vision. It forced the Communist union members. In so doing 
"****~ ni L. shin h»« nAuw iaaIuj Tbe dramatic -CTins of 


.. ship has never tented” The dramatic grips of tbe to come out in the open these Christian Democrats and 

comfortable as in-th?w movement eventually lao- 81,4 demand a greater say and Socialists may be genuinely 

„ months. .Its- rank anrt *i«rS Italy's economic struc- influence in power, thus voicing their concern over the 

fused. ££?*" tu^fc. They in aii in- eventually leading to the rcsig- future evolution of their move- 

* ' coimtiVs thrift m t£QSe consumer. Boom which nation of the Andreotti Govern- ment, but. they are at the same 
07 3 iQree - mam -'- — * 5 - * time involved in the complex 

Italian political balancing act 
of maintaining the delicate 
equilibrium between Right and 
Left 

The real test of the evolution 


S' 


^o^conS^^ar?£ *° oiI ment !n 

; Tortuous 

*.is •ssrSz ssis?K=iKws 

munists, Christian Democrats 30 ^P er cent * ?^it in large tical agreement was eventually 

j Social ? a B0 ^ ed i ‘ SaUa cached after .nearly two of the Italian tirade union move 

tj, ..• Mobile, the Itaiiaa system of months of tortuous negotiations men * has yet to come. It will be 

ine movement rfe now facing . wage indexation. T&ir competi- by the country’s main parties. toe form of the shop floor 
[pertraps xte tnggest ever tiveaess of italy-s minufactur- Sig. Andreotti invited the response later this year and into 
, challenge. But this challenge, ing tnfizstiy dropped sharply, unions to discuss his new pro- nexi to the new shift in policy 
A _ gainful dilemma. Ihroduction was" repeatedly hit gramme before submitting it to wh en a number of irapor- 
dramatic nature of the by the growing! . number of Parliament Tbe unions were tan t national labour contracts 
^■countiy’s economic crisis has strikes. The burden of social consulted at the same level as have to be renewed. It is still 
• 1 forced upon It a whole series welfare charges' by em- tbe political parties. uncertain whether the rank and 

Of problems and contradictions, ployers became almost unbear- r n Nan ,_ at file will accept their leaders* 

But above all it is now facing able. call for moderate wage claims to 

one. overriding issue: whether' /pv.- bring back competi vity to indus- 

to protect th* nositinns it has . lue .economic ..recession the Christian Democrats In try and lead the wav to recovery 
gai^TS ^ ^tfn yeS R -° m ^ j ^ Communists 

and-tbe .interests *^1S^SSZS!S tei. it is difficult V^eve 


employed ^members, or to 


took . ahead --and defrad^the^ 1 ^^ future salary rate increases 

longer' term interests not only «f under double figures. It is 

of iB m^nbBrs bat of the work- ^ ^ IaJy™lL ” ^d “ onoim= equally difficult to see the union, 

. ESS S==?Sf£ 

••• -W £W 3 gsgegug SSS 

: ‘ moderate and realistic approach dep^lreiSns oftta South ded , as .j, 13 Worship.. For ja- 

. .to wage negotiations. They i in Z rnii letter am P ]e - 113 ere are aow signs of 

looK to? a£? ^former” ominu^ deputy. 

of labour mobility and tbe need nni rtn< iraw nfiver turaed their Sit! Lama waa already ex Dress- ^ North towards the 

■;q/> ;r^i. reduce the overall cost cd. attention to this potentially ex- ing the same sentiments. The Ca . lhQli< : Wo ^ d 81,(1 Right-wing 

* S55? three nuSTun.on confedera- * ollucal P 0siti0as * 

i-,:i . J3S? phwment, but -with the growing tions approved a document tor 

student unrest , of the past 12 a new industrial and economic 
-•-s» ally obsolete plants for the j. T—.: 


country had workers* assembly. They urged StTl * k.Z: jT.i .-Tl!,* 
5 Aeend of CGIL union members to accept £“2* “5? "“".“SS 


really obsolete plants for the 
i shei 

• • - .'.^tant employment levels.' 


-■ * - reE * U1 „ months, and the deterioration policy. In two months some 
• = ii-.-rur ajeer sake of protecting shozt- j a * 


Unity 

In tbe next few months the 


of law .and order, the unions 10, out) shopfloor meetings' were 
too,- or at least toe leadership, held in factories and plants to who,e of 
... have bad to concentrate on this persuade the rank and file Ui “ ent wiU b J* on leb J: 

" ^ aShlft . . - probleim -.w.* accept the new policies. After lt « apparent recogmuon of the 

ci-rf. . - . It: has been a .disconcerting more than a year of negotiations ne f d {° r c ° nce ^ ted a ° d 

<Ta7x One hasto lookhack ten years experience. When ®g. Luciano major union - management “f' i uo , rial l ° 

-■ --.'to see the extent and importance Lama, leader of the largest and disputes involving first the State J ut 

. l^of the recent shift in the move- Comomnist-dominated labour Unidal food manufacturing 5? c,al 411(1 econonuc problems 

- ■ - mentis policies. In the late 1960s confederation. CG33&; addressed group, then the Italsidcr *teel .*“* £, 0V 1I! 

the unions first emerged as a a; Rome University -rally last conglomerate and subsequently “ Bl “S 

- major political and social ftwree. year< he was not only booed: the Alfa Romeo car group were j e J de ” 7® 

, ~ ‘^Earlier in. the fifties, they had Ms Presence 'Indieetiy 7 sparked resolved. It represented an mdeed huge and contradictory. 

- ‘ - "-gradually' increased their; inSur off a riot. . ■■ -important turn-round in Italian especially if one considers the 

-tence, especially in the industrial ;.Tbe movement found it could industrial relations. 

~ -■-'-"‘'north of the country, where they no Jbnger regard itsdf os play 
-■ :c- managed 

el's class . . base 

: ^in«m)ved-WMking'-’aMiditions,-politicaI . force! - . Although -ambiguities. — - — - ... ^i. -« 

: .‘i c social benefits and pay - The cdh- labour leaders are now atlenqit- that the. shift in policies was to II*! 1 ! S 
• editions of Italian workers m ing.at great len^h to say that a large ^extent politically moti- ^ulSLF^SL 

. - - .-those yearswere generally, re- the unions, are not “Italy’s vated. A^a time when the Com- 

bearded as beingwell below the seveirth political party” to ell mirnist Party— which after all, lea( j ^ ot urn ove- 

"average for other industrialised intents and purposes they have unlike the* Labour Party in V*!"“^ ves **£,*“? 


situation in which the 


the 
move- 


Ypt the speed with which the menl ’s base found itself barel> 

to unite: the working ing ; an important, if . limited, switch has taken place has left lfi ® A ,u„ 

s rh; the straggLe for'social .role; It had -become a a so- far unresolved series of Jf ut “ e * ad 
. werkinz ■'-■ximiditionst political . • force! - . Although -ambiguities. It is held by some oi recovery in 



-’— it did so with a vengeance. 

r.: changed 

'r? From the availing conditions -programme. 


by nnion treats , to organise a unions ip adopt more moderate X go^Si 

™. .tinitifs =■ 

arena. They would like to buy 


luu aw n iui “ u; ^uuuu vucois-tu ui^ om jc a w 

The conditions of ^he workers general strike against Premier policies, 
ranged practically overmi0% tiiulio • AndreottJ's economic This in 


nr^of the fifties and sixties, .they . In December the mechanical a whole. . Tbe Christian Demo- ^ hul vhat 

: jc went to the other extreme— in a union organised a mass demon- crat and Socialist unionjeaders may ^ be Utt |J r~^ . 


.. sense because of- a profound rtration in the squares and are now accusing the CGIL, and ie ft 
. feeling of guilt on the part: of streets -of the capitaL It was Big. Lama' in particular, of 
~ ' the establishment hut also be>- a national evettt, given unprece- putting. , its parly before the 


P*B. 







- ---own devices than on any outside 
i : ^support” 

This is -partaculariy true of 
' ^the vast -.majority of the 

- ^ country’s small and ...medinm- 
"^sized private enteipEises, which 

: ineffectively fonn -tie backbone 
: of Italy’s industriai structure, 
if they have managed se far to 
- survive the current -recession,at 
... ■' ; is mainly because- of the basic 
■, nature, of Italian small . and 
" . medium Industry;-. 

prfcndpally concentrated in 
?' " -:the northern industrial belt of 
' ' "-.the country, in' iprahardy, the 
Veneto and Piedmont,' and in 
the so-called “Communist belt” 

. of Reggio Emilia, this private 
" sector has maintained a highly 
* individual character. . It has 
'- been able to adapt itself quickly 
' . to changing economic.- condi- 
L- tions, to organise its own export 
2 : drive through local exporting. 
:. r: '_consortia and -to deal roccess* 
F '^fiiily at its own level with the 
• i '-^difficult problem of. industrial 

•:■■ -f relations. 

yi* Cities like’ Modena, Brescia 
’ and Varese, where there, b a 
^'bigh conceatratioh of medium 
.,S : and small Indus try, aw>ear to 
/; sjiave managed so far to isolate 
; themselves largely feom the 
■'.1 ^country's general economic 
"‘‘.j ^crisis. These' industries, in- 
.v Evolved In a wide spread ; of 
‘ manufacturing front machine 
S tools, mechanical and electrical 
: 'V* components, textiles, , steel to 

: ^ shoes and ceramics; are continu- 
5^ ling to draw interest from poten- 

- * > tiai foreign investors, ranging 
1 ^from Japan to the U.S. They 

are alsej \he source of contro- 
versy at European Community 
level, accmedr often of . under-, 
cutting tile - European market 
because of their ability to retain 
.•ompetitive prices.' 

But the recession is now also, 
beginning to bite in this sector, 
too. Over the past 'five years 
^labour costs have Increased by 
as much as SW per .ceaC For 
companies which: -have: tradi- 
tionally relied oh selffoanctag, 
,f 'o turn now to the financial 
ifi naricet at a time when intwiest 
*tes on short-tenn money are 
tin. If- somewhat, below 12 


CONTINUED FROM PREVIOUS PAGE 


months ago — ^ctremely high, (IMI), Italy’s leafing State' 
implies serious limitations io tnedlum-term credit institute, 
their . potential development, helped the Turin-based Fiat 
This- is reflected In a steady de- conglomerate in its efforts to 
dine in the productivity of consolidate its financial position 
medium-sized industries, which by granting it a relatively low- 
in some cases is as low as 45 Interest credit line. IMI, like 
per dent of potential capacity, other banking institutions, is 

The necessary external sup-, now: also closely involved in 
port to- smaller enterprises to “the recovery programme of 
adopt more modern business companies 'in one of the most 
management and accounting troubled Italian industrial 
techniques is also severely lack- sectors— chemicals and syn- 
ing. Apart from small local thetlc fibres, 
regional banks, the banking Fpr its part. Fiat, Italy’s 
system as a whole .has not pror largest private company, plans 
vided the sort of financial and • to' complete its group restruc- 
indeed “education” aid to help taring programme over the next 
thig sector develop, or at least .12 months, which will see the 
to see it successfully through giant bolding decentralised into 
the present recession. 11 separate holdings, linked to 

The bankSj however, have re- specific sectors of its industrial 
cently stepped^ up their inter- activities. The decentralisation 
vention in the top end - of the programme alms at giving Fiat 
private sector— as they are also greater' elasticity wtitbln specific 
doing in the public sector. The sectors, bigger possibilities for 
financial and structural xeshap- entering into Joint 'ventures and 
ing of the major private and more- competitiyity. The Turin 
public groups is in turn ex- group, with a consolidated turn- 
pected to help the recovery of ; over last year of Lll,000bm, 
smaller enterpriser, whieh have has now turned its attention to 
recently- had to look increas- the industrial vehicles and agri- 
ingly towards- the export market, cultural machinery division to 
As a substitute to the -stagnant balance in -part the continuing 
domestic market. difficulties of its traditional car 

manufacturing activity. 

inncnllndlPfl As regards the ailing chemical 

^UUhUUUdlCU sector, the Government, intends 

Recently major private groups to introduce shortly a long over- 
llke Olivetti Rat- and Pirelli due restructuring programme, 
have , gradually . consolidated There are likely to be major 
their financial position at the changes in Italy’s largest chemi- 
«ame time as diversifying cal conglomerate, the contro- 
productive base. The' Olivetti .v.ersial mixed State-private 
-operation is a case -in point In Montedison group with accumu- 
'January. this electtonics and lated debts totalling L3^00bn., 
engineering group* finalised which will also closely affect the 
what represents an important country's other heavily indebted 
fin ancial operation to consoli- .and crisis-ridden chemical 
date Its indebtedness, with the concerns. 

Italian hanking system*, trans- , The - Government • proposals 
ferring some LSObru - (about -are expected to include detailed 
fMm.). of • short-term ;debts into 'co-ordination between the 
-a medium-term commitment;-, various- chemical companies, not 
The deal between Olivetti and pnly in terms- of their commer- 
some 26 Italian banks has -been .dal -policies' .but also of future 
welcomed-as; ah. indication of ; investment progrmnmes. The 
the banklngsysteto's willingness companies will probably be 
-to. support and enhance the galled to . intensify their own 
status and credibility of private specialised activities and .to con- 
ihdustrial groups. . \ centrate their future Invest- 

On a previous;, occasion .meats in the more economically 
jnstituto Mo btiiare Ttaliano viable production of fine or 


“secondary” chemicals rather 
than in their traditional but now 
uneconomical production of 
basic or “ primary” chemicals. 

The recovery programme, 
especially for the fibres sector, 
is likely to be based on the 
rationalisation of plants and a 
review of new investments so 
as to keep them in line with 
the limited domestic and inter- 
national market demand. 

Yet the programme for the 
chemicals sector, like the 
country’s industrial recovery 
programme as a whole, depends 
on a whole series of so for 
unresolved issues. For a start 
it depends on the attitude of 
the unions, .since any recon- 
struction programme will imply 
some rationalisation of labour. 
It will then depend on whether 
the authorities can find the 
sizeable sums to support such 
a programme, whether tbe cost 
of money will effectively fall 
and whether some agreement 
on the system df inflation- 
indexed salaries can be 
resolved. 

The national ■ employers 
organisation has stated dearly 
that ■ any such recovery pro- 
gramme must be directed in the 
North at bringing back produc- 
tivity to acceptable levels at 
existing plants.; In the South, 
new job-creating investments 
must, in its opinion, be directed 
towards those sectors which In 
the. past have been ignored in 
-favour of a disastrous policy of 
State-subsidised credits . to 
promote tbe so - called 
“cathedrals in the .desert”— 
capital-intensive plants using 
little labour in areas devoid of 
proper infrastructures. 

Confindustria sees the 
answer in the South in the shape 
of agricultural investments and 
the promotion of new small to 
medium-sired industries, par- 
ticularly in the food processing 
area closely tied to the region's 
agricultural base. The theories 
are all there. It remains to be 
seen If they can be executed 
“ ten years too late," as one 
small businessman remarked. 

PJL 




21 







Area : 

■- w . 

More than 130,000 sq. km. 

Population: • 

About 20 million with a per capita income in 1976 of 2,108 dollars. 
Private consumption in the same year*.- 3Q billion ;dbllars. 

These are the vital statistics of ihe Mezzogiorno, as Southern Italy 
is called. .... 

The region is an economic and productive reality that no business 
interested in locating in Europe* can afford to overlook. 

In fact, as evidence of the interest shown by the 
international business community, the Mozzogiomo counts 
over 270 manufacturing plants set up with the participation 
of foreign investors. . . 

Expanding markets, availabHrtyend trainability of labqurjncentives, 
infrastructures; these are.the raain.induGements to choosing 
the Mezzogiomo, as well, of ’course, as its ideal geographical • 
position between the Mediterranean and the European countries. 

Also, the Mezzogiorno offers prospective investors ^variety of 
incentives, such as cash grants,, soft loahs> Corporate tax waivers, ■ 
equity participations, and a reduction in the cost of labour. 

If you want to know more 
don't miss visiting us 

at the International Exhibition & Symposium 
for the best choice of location. 


INTEFMDEX '78 

23-26 MAY, 1978 
BASEL/SCHWEIZ 

(hails of tiie Swiss Industries Fair) 


Stand 42.235 M EZZOG IO R NO- ITALIA 
where a number of experts from 
(ASM and financing corporations 
such as FIME, FINAM, INSUD 
will be at your disposal. 





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00197 Roma. 

I A OR A TeL (06) 8472 - 
lAOlVI Telex 68232 IASMROMA. 



your next 
holiday 


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22 


ITALY YI 


Financial Times Tuesday April 4 1978 




The South boils over 


1 1 ^ 
U \‘i 

ii r ' 




•••••••••• 


all the 
products 
of the 


industry 

m m m m m m & 


•••••• 

•••••• ■ 


Italsider - Genova 
-,r ho?*?c!«ed ' at ss's-'c ed 

: :ate z •" • p-o«3u;-s - 
. Kce ar-: s ) '<?•«- 

AeGvor.se c res 
•0 sc sno seoi-d'S • 

.V? ssr cns - Ra *3> 

'• ttsrttiar.'es 3 0 
Ro- way *re?'- .v-3f:se r rer.t.j.': 
? r : rc;>. - S'ev 
C3:t 'jc 2-0 'C' 3 ;r.g« 

Oalrrtire • Vi ;>;*o 

Se3 ~'\' ;s 3'G wetcvO s;°e ! 
o-oe *:•• 3-"v :nsus”ia. 8'2 

C:v-'C;'p'W< 

Ternt - ^crr;?. 

E ecv zs- ano s?2 ir ?s«3 stee 5 

’C'^'CS C3St:~gS. 

^rsi.'-'d'gi.n.os. cc'c:es& rein-. 
G'C“3 ra*s. 

2*as£v-* -‘jsse!?’??' c^r.'.a 
0 e t r : ;* r e ~ i i 3 i An c ■. u:-: e a v 

-OvStr. 

Acciaierie 

di Ptombino - PioTbrno 

ve*;0a*: 'r set r-.'T-O.tts 
•r en ers ai&c. v- soec a 1 
a'd *a> s 


Morteo Soprefin - Geneva. . 

A : tyces o f s'.se cc~3 -ers 1 
.5C3'c-.'a.t« ^e'3D !;a*eC-rre : ' ! 

*3 :,; 0 £8* /iC.f's. VO es. 

" •* ' . * 

C.M.F: - Livorno v & • ' ; 

' Costnj 2 >oni Metailich* FinsiiJer. 

; ',£»uSy . detVEr.. cc3sru:t.cr.s., ’’ 
,T2 : f ice 'e'eccc' 3 ! .sr~ *: . ( 

■ .. ?c.r ■*-.3-jS7t?. i sr : q ' 

'C-vi. £-• •IT'-I'i -•* - 

Pooteggr Dalmine GA: ano 

' o->. r .$ In'cf “z-’r. w.o**es 

Stc^ge Rasas' ’ • - ‘ ... 

•• • - *•'. •• . ;.P — 

Italimpianti ’•Genova*' 

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s*'.-r'c~cf c^Vtv • 

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gamont - Piazza Piccnotetro. 9 
- 16123 Genova.^ - 

•> 

. Innocenti Santeustacchiovt 

• 'MCa.no 

. Des:gn z~n .-iv.zr 3 ? ’ . 

.i'.oicJ '. ts arc voc.prent ‘s'.siesl 
^anCr.'cn-rer^cj’meteiE. ,=■'■ v- T o. 
m:-t ro'.is -fceav, i-iscvre \ ... 
tc-p'S 2 'yd r-r^sse- '■ 


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' -I- •• ' 

'• ‘ ■“•: ; ■ Z - . f 


EVERY FRIDAY when the 
weekly market stalls motor up 
the winding road of the Aspro- 
monte, bn the very southern toe 
of Italy, a police patrol drives 
in front and behind in case of 
a hold-up. There are more than 
130,000 young people, all with 
arts degrees, looking for a first 
job. There are the Mafia and 
numerous political and social 
dans that feed on poverty and 
under - development. Local 
government is chaotic, even in 
Left-wing administrations, and 
it is- still necessary to have a 
“ Raccomtmdazione ” or to know 
someone in the town hail to get 
a simple birth certificate. The 
traffic signs on the empty brand- 
new motorways are used mainly 
for target practice. These 
elements of the Mezzogiomo, 
Italy’s South, could be the stuff 
of film scenarios. 

Now take some more recent 
facts. Some 150,000 trade 
unionists from all over Italy 
descend on the streets of Rome 
on the first Friday of December 
to demand a change in Govern* 
ment economic policy. The mass 
demonstration is given Jive 
coverage on television. It 
prompts the powerful Com- 
munist Party to adopt a strong 
line and remove its so far tacit 
support through a policy of 
abstention in Parliament for the 
Christian Democrat Government 
led by 5ig. GiuJio Andreotfi. A 
month later the Government 
resigns. 

Eventually, 54 days later, Sig. 
Andreotti forms a new Christian 
Democrat administration which 
uniquely in the past 30 years 
is supported directly in Parlia- 
ment by the Communists. Hie 
new. government formulates a 
commonly agreed programme 
with the other major political 
parties. The emphasis is on 
economic- and social measures 
focussed above all on a recovery 
of the depressed South of the 
country, the Mezzogiorno. 

The Mezzogiorno has been at 
the root of the current Italian 
crisis. Although it has been 
overshadowed in recent days by 
the bloody kidnapping of the 
Christian. Democrat chairman, 
Sig. Aldo Moro, it- is, together 
with the deterioration of law 
and order in the country, one 
of the key problems of the New 
government will have to face. 
In more than one way It is 
intrinsically linked with the 
growing phenomenon of vio- 
lence in Italy. 

In the first instance the 
enormous gap between North 


and South— which has widened 
over the last few years — has 
created a structural imbalance 
whose gravity cannot be 
exaggerated. In social terms it 
has seen not only an exodus 
from the region's original agri- 
cultural base to new local 
poles of industry which have 
not come ap-to the general ex- 
pectations of the population, 
but an exodus too to the 
country's northern industrial 
belt and beyond to other 
Western -industrialised coun- 
tries. 

The North, after the early 
years of the country’s so-called 
“economic miracle , H has not 
been capable of meeting the 
hungry expectations of the 
South. It was' not geared to 
absorbing the type of emigra- 
tion the South generated. 


Explosive 


A southerner who found a job 
with the Turin Fiat car con- 
glomerate would set off with ail 
the members of his numerous 
family. The city was unable 
to accommodate both him and 
his family, nor could it provide 
jobs for all. Witb him, the local 
M-afia also emigrated and found 
ripe pasture and manpower in 
the industrial slums of the 
North to extend its activities. 
So did the more extreme extra- 
parliamentary groups. 

In the South, as the emigrants 
immigrated back in the wake of 
the recession, the situation has 
become explosive again. There 
prevails on overriding feeling 
of frustration and of being let 
down by all political forces in- 
cluding those of the Left 

Promises of new jobs, some 
60.000 under the so-called 
"Colombo package," have not 
been fulfilled. Seven years after 
the city of Reggio Calabria 
rose in revolt there are now 
increasing fears of renewed 
violence as social unrest grows. 
The failure first of the land 
reform, which tended to distri- 
bute mainly the most marginal 
land of the traditional southern 
landowners and under financial 
and environmental conditions 
of the most discouraging kind, 
and then of an ambitious but 
generally unco-ordinated indus- 
trialisation policy, have— like 
the climate, geology and history 
of the region— continued to 
conspire against it. Its popu- 
lation seemingly shares a 
common calamity. 

The Mezzogiorno .is perhaps 


tfnrierriMMin b ® ckwar 5 “i 4 ably te the battlefield of producUve investment the South increased at a similar or » 
n? d ri1S h, ? e ?F r ff I ° I V l0t 0nly Several election, the requires for its longer term de- higher rate than the North' 

i a ? tbontle5 l iiavB made tentative velopmenL At the same time fot the tot timein laS' 

Community as a whole. In this pledges for an alternative the ' authorities have- been than half that of +>,*» 
5-^L 1 ^ industrialisation programme for actively campaigning over the and central part of the 

biggest single problems of the Gioia Tauro area. last 12 months to attract foreign »_ jqyg Tt IV riup . C0UD 

European regional policy, be- The new programme for Gioia investment to the Mezzogiorno. hvr i»» tal3 C s ®J fP J a * r w 
cause of the importance, albeit Tauro is in line with the Gov- i™nV«ifv there S 5,6 ceot - Broken * 

declining in the last 30 years, ernmenfs revised Industrial to thi£ n^ ?, e W. 

of agriculture, its role must be policy for the South as a whole. JStahT i£fS- ^Cassa per U 

further- viewed not only on a it Involves the .promotion of MeS'oroo waTtetset up in L 22 

domestic but also on a Com- smaller and medium-sized in-. the^I^I 95 ^i£ first task “ nL - reinvestment 
munity level, especially with dustries to give the South a . ww m devSop th? baSs of a KJgSf 4 »- 5 P* < 
the prospects of EEC enlarge- base of manufacturing indus- mode™ agricultural and trails- Bm P ,0y ^ ien t 

ment and the entry of directly tries that can rationally be con- nort SraSucturehi the South, jj. 1 L ?„ p ? ( - cent - ,n N 
rival •agricultural producers solida ted and expanded over the By the start of the 1960s this mJLJJJJ?,' 5 f* 1 * 1 - h) 
like Spain, Portugal, Greece years. The aim Is also, to link emphSifSas already switching f” 0 ;*. A | rjcu J turaJ 

and eventually Turkey. the new industrialisation of the massive industrialisation jj*®® 1 “ ® J*® Soi ^ h 

This Community ' dimension Mezzogiorno with the . region's prograinme which has now come t jf 
was recently given relief when ^0 other major sectors- with under increasing criticism. T«.,f n 1 ® r 11 

Brussels effiectively blocked long-term potential— agriculture in the period 1968-74 alone, in 

proposals to buUd Italy’s fifth and tourism.. \ the Government’s Planning per cenL nf 

integrated steel complex at The government thus intends Board approved indus trial in- JL. ^ “® popwatio 
Gioia Tauro near Reggio to promote food processing in- vestments in the South totalling . <’ national • 1 

Calabria.. The EEC inter- dustries and tourism infrastruo- more than L7300bn. . (more . . . wtai. 

vention in fact was welcomed tures at the same time as im- than £5bn.) for the creation, in In the last two years; witl 
by the Italian authorities who plenienting an agricultural. rj»- theory at least of some 93,000 recession, the financial cm 
could not see how they could form through financial ineferi- jobs. But practically 80 per the public and private sec 
get out of the steel proposal at rives provided by the special cent of this investment was in and the adoption of restri 
a time of crisis in the Italian credit institutes. for the South the chemical and metallurgical monetary policies, the situ 
and world steel industries. It like the Cass a per il Mezso- industries which are relatively in the South has deterior 
was to have provided some giorno, ~ whose total available highly capital-intensive but low It has hot been helped e 
7,500 new jobs. Some major credit for the South this year on employment . by the way in which State 

Infrastructures had already has already been increased, to sidised funds have at rimes 

been built about L3,000bn. St66l - . ..administered or by the s ' 

With the Brussels excuse, the In the immediate short-term . . . 

authorities stopped what was the Government plans to ease In that seven-year period six duced and 8 
already being termed as a the region’s chronic unemploy- of Italy s largest chemical , ^° s ?[***** 

gigantic white elephant Butin ment problems by focusing its ^ups—m eluding among others e an ®* e 

the face of local protests, and policies for a recovery in the Montedison and the State Anic ° ubt ®? 

for a whole series of political popular domestic construction grou ?T“?^ tot , al 

considerations, not least the fact market in the South, although’ worth L4.488bn. for the creation effort capital and d®dic 
that the Mezzogiorno will prob- this is clearly not the sort of of onl y 33,000 new jobs^while tii« ha e gone “ t0 ■■ 

-the metallurgical industry in- during the past two decadt 
* vested L2,349bn. for the creation many respects, these e 

• of some 25,000 new jobs, must also command respeci 

• principally connected with the There is now finally a ge. 

t Taranto steel complex: In Turin, consensus in the country 

1 lAn^AI^Q L760bn - was invested, by ^ future policy gj . 

I m i ~ I 1 4 . I I I 4 I I I the engineering industry to pro- Mezzogiorno. It is bas- 

1. ^ W' U L/ V/JL U i^X V/ XX vide practically as many lobs— centred on the developae 

JL 33,995 to be precise— as the agriculture, the encourage 

- chemical industry which had labour-inte ns ive 

• ~"TW T | - invested six times as much. the agro-industry and tow 

m lX. I O I D O : Between 1961 and 1973 indus- The aim is not only ecw 

I X Ill investment in the Sooth but essentiaUy political/ 

JL v vV X%/ kX increased from 18 to 42 per cent. an <j cultural too— mainly ' ' 

JL of the national total, but em- (juce the intolerable coh 

ployment effectively fell from which persist between I 
24 to 22 per cent and South. Italy has a c 

WESTERN EUROPE is going streets of Naples which some-; Despite this extensive indus- choice in front of it -It 
through a recession. Of all the times degenerate into riots, trialisation policy — a policy of question of identity— wfc 
countries in the European Those who cannot find jobs take which the Socialist leader the country regards itsell 
Community, Italy is the worst to thieving, prostitution or the Giacomo Maneini once said that of the West or whether - 
hit In Italy the Mezzogiorno, flourishing contraband trade, 'nothing had to be spared to gradually plunging deep* - 
the south, faces by far the most There is then the problemof ensure the creation of an indus- deeper in the Mediterr - 
acute crisis. And in the south overcrowding and pollution. The t,^ tradition in the South like zone. The answer must f 
the crisis is most heavily felt city's hospitals are at breaking aat of th e North— the annual^ • come from the Mezzogioro 
in the self-styled capital of the point: thousands live in the growth ra te of the Mezzogiorno. 

Mezzogiorno, the city of Naples, maze of the old Spanish quarters which sinr-p th*» muM95n« had 

with its 1.5m. people living in in decaying buildings: property, , ■ — — . — — - r . : 

often desperate and over- speculation bas destroyed prac- MILAN ■“T** 

crowded conditions, scratrhiug tically every tree in Naples; the f • riTueorAAnc 

a livelihood, thanks to their streets are filthy; the Gulf of I .1 lALlAN LCAI n CttuwUUO 


ably be the main battlefield of 
the next general election, the 
authorities have made tentative 
pledges for an alternative 
industrialisation programme for 
the Gioia Tauro area. 

The new programme for Gioia 
Tauro is in line with the Gov- 
ernment’s revised Industrial 
policy for the South as a whole. 
It involves the .promotion of 
smaller and medium-sized in-, 
dustries to give the South a 
base of manufacturing indus- 
tries that can rationally be con- 
solidated and expanded over the 
years. The aim Is also, to link 
the new industrialisation of the 
Mezzogiorno with the . region's 
two other major sectors: with 
long-term potential — agriculture 
and tourism. . ' 

The government thus intends 
to promote food processing in- 
dustries and tourism infrastruc- 
tures at the same time as im- 
plementing an agricultural, re- 
form through financial incen- 
tives provided by the special 
credit institutes. for the South 
like the Cassa per il Mezzo- 
giorno, ~ whose total available 
credit for the South this year 
has already been increased, to 
about JL3,000bn. 

In the immediate short-term 
the Government plans to ease 
the region’s chronic unemploy- 
ment problems by focusing its 
policies for a recovery in the 
popular domestic construction 
market in the South.- although- 
this is clearly not the sort of 


productive investment the South 
requires for its longer term de- 
velopment. At the same time 
the - authorities have been 
actively campaigning over the 
last 12 months to attract foreign 
investment to the Mezzogiorno. 

Ironically, there is nothing 
very revolutionary in these new 
policies. When the Cassa per U 
Mezzogiorno was first set up in 
the early 1950s. its first task 
was to develop the basis of a 
modern agricultural and trans- 
port infrastructure in the South. 
By the start of the 1960s this 
emphasis was already switching 
to the massive industrialisation 
programme which has now come 
under increasing criticism. 

In the period 1968-74 alone, 
the Government’s Planning 
Board approved industrial in- 
vestments in the South totalling 
more than L7,800bh- . (more 
than £5bn.) for the creation, in 
theory at least, of some 93,000 
jobs. But practically 80 per 
cent, of this investment was in 
the chemical and metallurgical 
industries which are relatively 
highly capital-intensive but low 
on employment. 


Steel 


Desperation 
in Naples 


In that seven-year period six 
of Italy’s largest chemical 
groups — including among others 
Montedison and the State Anic 
group — made, total investments 
worth L4.488bn. for the creation 
of only 33,000 new jobs, while 
the metallurgical industry in- 
vested L2,349bn. for the creation 
of some 25,000 new jobs. 



enormous reservoir of inventive- Naples is polluted — soldiers had 
ness and instinct for survivaL to be called out last summer to 
In these terms, the first Com- prevent people from swimming 
munist mayor of this major in the sea: and the Tate of in- 
southern post. Signor Maurizio fectious diseases is the highest 
VaienzL summed up what is in Italy — memories of the 
perhaps the country's single cholera epidemic are still vivid, 
biggest urban problem. Local government or mis- 

In one of the city's main government has exacerbated the 
boulevards, Via Roma, stands already chronic situation or 
the imposing headquarters of Naples — -not only in terms of the 
the Banco di Napoli. In terms of fi' re financial difficulties oF the 
assets, it is the sixth largest Town Hall and other local bodies, 
bank in Italy. It has more The massive exodus of the rural 
counters than any other com- population of the south towards 
mercial bank in the country, the city was never properly mont- 
some in desperate, isolated tored. Naples became a major 
villages in the south where a crossroads for the southerners 
local post office with a couple who went up north to seek jobs 
of clerks could quite easily and beyond the border to France, 
bandle the relatively modest West Germany and Switzerland, 
turnover of weekly business. With the recession, they are now 
Yet the bank, which employs returning in increasing numbers, 

13.000 people and has a further but instead of moving on south 

8.000 pensioned employees, can- from Naples they are now stop- 

not close them down as economic ping and settling hi this over- 
logic would dictate. Of its total CONTINUED ON 

annual deposits of some NEXT PAGE 

L7,000bn., about 45 per cent are 

absorbed by the bank's com pul- 

sory investments in low yielding VR Mttt A 

bonds and by minimum reserves «■ M 

requirements. Another 35 per 

cent, represent credits extended mm- 

to the local authorities or MM MB' 

regional State bodies. Only MtM JV 

20 per cent is left for the 
economy as such. By inter- 
national standards, the Banco di 

Napoli is no ordinary bank. O W 


f ITALIAN LEATHERGOODS 
EXHIBITION 
presents the 

3rMIPEL 

9/13 June 1978 

On June 13 the event will close at 2 pm 
at the Pavilion 30 (Piazza 6 Feb bra 10 ) in the Milan Fair groifl 

SELEPEL 

21/24 October 1979 
On October 24 the eyent will, close at 2 p.m- 
at the Pavilion 30 (Piazza 6 Febbraio)in the Milan Fair grow 

34 *MIPEL 

January 1979 


MtPEL S.p.a.- 20122 Milano (Italy) 

VJale Beatrice d'Este,43‘TeL(02) 540181 *584522 


Debts 


WMft 


An area that counts in Italy, 
the North-East, is blanketed by 
our branch offices. 

Our organisation operates in 
all corners of Italy; which also 
count. 



Nor indeed is Naples an 
ordinary city. Its single biggest 
industry is the town hall, 
employing 21,000 people. It has 
accumulated enormous debts 
with the banking system and in 
particular with the Banco di 
Napoli. Year after year its 
debts are rolled oyer together 
with the interest due. Now, for 
the first time following the intro- 
duction of emergency Treasury 
measures, its debts will be 
consolidated.. 

In many ways, the city and its 
surrounding region highlight in 
concentrated form the most 
dramatic aspects of the country’s 
current crisis. The problems 
arc enormous and, although 
different, they are all inter- 
related. Above all there is un- 
employment: of the region’s 
2.8m. people, more than 220.000 
are unemployed. In the special 
employment lists for young 
people, some 42,000 youths had 
signed up at the end of last 
August At the end of the year, 
the figure had risen to 47,000. 

unemployed have 
organised themselves in their 
own union of the unemployed. 
Jobs are sold on the black 
market And while thousands 
are looking for employment 
there are thousands of people 
with two or three different jobs 
— working as a messenger in 
the town hall at the same time 
as being employed with the rail- 
ways and conducting their own 
private activities. Every day 
there ore demonstrations in the 


—more business 
from banks 

and businessmen, please 


Cariplo has: 

• 3,800,000 deposit and current accounts 

• 1 1,500,000,000,000 lire deposits and funds administered • 

• 400 branches - 8^00 employees . 

0 including Mediocredito deposits and funds 


’.-CAN 


Head Office: Representative Offices: 

20121 .MOan London Brussels Frankfurt 

Ikily C unaid House Avenue Louise 327 _ 10 bgoppty * ,. rn fi«fig 

% ia Monte di Pieti 8 88 Leudenhall Street EC 3 B-1050 Bruxelles . m the 2 nd onarteron*« 

tel. 102) 88661 let. toil 2832302 tel. 6400080 

Idex 21280/34451/33407 telex 887641 Cariplo Ldn telex 62446 Caribr B . / 




Li 


takes up a lot of space in the Italian banking pirt nre * 


* CASSA EX 


PROVWCJE 





‘Vij 




I 


. ' -3W* «-. 

■ ‘h'SiTiiSjS-^W ‘ - • 1 

• ■- ■* . • v*hT ? iV ;■ ‘ ' • .;'. 


4 1978 


Italy vii 



c 

v 

Jla n „ , 

■■ jj!,- , 

** =5.-;^ 


a s. v . 
<an ,_V 


cm, 


*1 

i- 



retain 


.-'»:*: iy*'$ ■:■■ 

U Svv n:*;$: 

'ea.- : n S? . 

* 




»V 


P‘h. 

ta-:« 


•isT.i 


■2 3fr* ? '■^r/ 


Jess.-.'.. .I'* J?; f UBQUT THIS time a few years 
Sti..-t... ", '■■■ ■ As t . ®°» preparing- then as now for. 
i>- :■ - r '-w forthcoming .World Cup,, the 

,.^- 7 '-rn; ^a-taltan national soccer squad-. 
-. ' ar i V avell ed .tft CagQari 'in. 'Sardinia'. 

" y a friendly ., intematioaal 
ith Spain. Some organisational 


;^fg5r 

l#*J* , „ '*■•■-3 _,r — “* V16«W«WWH<H 

-a> • ' il ^:^o^retemps, . coupled with a. 

V ;v r “?res-m." W** of genuine illness, resulted ' 

• ‘-i? r : i * -'QijP the fact that a ~ r 




, ,i- * 4U: *i! | 

in : < 


:a> 


elebrities- - from. 


couple of 
the : local: 


‘fcf* v 


Cagliari .team were not selected 


he 3 ■ r ‘‘ fin£S ,nr the national side.. As 

ed Vre""' and the- Sardinians turn 


a 

.- r „ . -a pn '-““‘w ums- uonuiuiius turned 
e ecoptin Jf kUt m ' force -for the match,- 
‘ « ‘ feheered: the vislting^Spahiards 


„ PajtQ^ : *saeeraa:.rae visiting,. Spaniards 

r h~ '' ‘ Nr,Sit 5s haV 7*^° the .etyho ..and proceeded to 
.. bijjn w^elt the Italian players with 

•\ *■’■* •«-.-• ''gotten fruit. 

■'-•'! il . ^Ifhfc. m.. ; :j . . - ’ _ _ - 


an 


j * “ 3 J| *«e* havs?^ Tbe incident caused 

"Uproar- *^on the mainland,” with 
V .* jvj^Wie Italian Press demanding 

w'.Td ij-j-j !aa r ., Apologies all around, .while the 
...f bocal Sardinian" newspapers— 

*•' --n f-;-.,. ?^snd most Sardinians — res- 
r ^-.' ponded somewhat-' ' tongue in 


* , -:; j. fl .,., m f:' Ja >hheek to the effect that it was 
•Tr-rr i-Q.-'gi" 51 ^ logical to cbeer '.ftr the 

ia* r..T. “' ! and t^isitors. After all. Sardinia had 
!n! o feeen occupied for centuries by 



A street market in Alghero, Sardinia. 

^^rtt^^SDzn^' Tt'iVrntnvThar, and SIR, the troubled chemicals cious little involvement by the then depending on one's starl- 



-« *-.L-r-. pil-f r 7*s« u *'-7>ui taneui, aoum me t" 

.vu _..,rr i I, • Mcilians, which is to raise the P* — - — . 

ntrcV; - ^ Question as to whether they are from a combination nf political or Swiss, German, Belgian and that, but in economic terms 


prises on the of&hore islands been exploited by mainlanders. attractive to the visitors for all 


•r.!.v;..v e cer ^eally Italians at alL or merely direction and generous state British entrepreneurs who have facilitating no great advance for 
*■ I r.' .V " r' :e entt i %e inhabitants of - offshore funds, . The -iartstnamts have built hotels and associated faci- close on 5m. Sicilians and l§m. 
inTeR?l ' , e Bcian^e mMph - hmnm i, o' inrmVv h«»n intensive lities. Sardinians. 






.. inlands which ' happen to be lax^ely. been intensive 

- ^ dose to the Italian mainlandi . in tJtfq'. sma^^on^nies crying «- _ 

n, « -uly e: sjcjiy and Sardinia are or o«^ labourantedave injects JUaCKlAg 
■^in,.« 0 kntk constitutionally to absorb unemployment levels 


«■ i..y 


Yet if they represent the 
depressed southern region of 
Italy often multiplied many 


. J — P-ia^auKe bath eonstitntionaUv to anaoro unempioymear levels . . . , 

7-: :r;i n£5h a t«?SSSS - *** *t* v * & e natkmal Average. ' What. * course, has lieen times, they show signs of not 

‘ -WSW. cjl? ™S andffieteSSwS’^"* °* 'tKem SfS«used a lacking is money unUative and be lng proportionately backward 
: ' :: >:> •; - a£ '^ndtistTies industrial know-how. especially i n po Utical terms. On the con- 


S. 


j-i: i"-. 


1'^ve different and they ^ 'industries mausiriai Know-now. especially in poUtical . 

.!*> wTS^sS^f Sii aKwVfc.:*™®* Hie centaJ-auss, but P» h »P» "" S«rdlnl.. where t h, trury. there is a saying in Rome 

r ] r -b make 

TertitHa public, — , w w . ^ ... . 

V 8 sS ffldal-dSpSit^ici^ from ” abroad” which means yet an embryo W commod.tion 

■"™ purse ‘ stnn «»'-* nd remains ‘ advanced. untilTnow t by the i ust . al ? out anywhere outside of bet ween the long - ruling 

1 mal 1 /authofcttff^d Many Sardinia. On. both ^ islands, there Christian Democrats and the 


seat pf real power— mu0 ‘ 

* ■■ 'JaIi»F uihii>h inmelonfalltr ip 


Jl«jcf . which, ipcidehtaily. ik 
sr. • a ? r raised, whether . directly , { 


r and 


(who is a cr > in 8 need for developing Communists had surfaced' in the 


... — ""."I :• -■'- — IL' rr ' * r - Tr -w '-.. , rr fiSniaSvpR have— -nr^rlaim to agricultural base (Sardin- regional administration in 
.. « .dggggBlite or ^through the nothing^, com- ! a0 merchahts still offer Palermo before the concept had 

prvice, by Sicilians. • ..jnon) combine- to aBe» that ^Ported grapefniits for sale, ^en hold in Rome, and the 

.~VBoH» wantS‘takeep us poor ” as ]ust one case in pomt ) pm- Sardinians, too, initiated early 
■•r 1 lifc ^fl^iiutitoimnbfr^<lepr?a5ed cipally. through the wider de- m0ves in th e same direction 
- li- il 'ti r fr afr tsit^he south’s. velo ^“ je ? t - L ' *? ‘ ' cooperative although without quite final Is- 
fl5ftiaL 4in5 3% " tffiT a. civil farihs, given the existing frag- ino them, no doubt a reflection 
to ’ Sardinia - is JMtatiofc . of land holdings. of the caution for which the 
. -fco™ ** T* p uiushA ent far some EoonomiAan^yjts were saying viands’ people are notorious. 

, nr for getting on this inore than 20 years- ago, but But then perhaps Sardinia in 

lents, although they . -nuthing much has happened, particular has some- raw 

iken too seriously and, for all .™ although in Sicily; in particular. Material on which to build 


prvice, 

Reparation 


HERGOODS 
riON 
t the 


But the fi 
i there, ahe 


»EL 


ractical purposes, have no 


island is now free S0Ide *® a13 progress is being Antonio Grams ci, who founded 


1978 

:;1 =.oieat:c«. 


eight in electoral terna.hut ZSmS^- g to~^~cifr£i«pSe' 

unaemoes Kwilrf j^; • reputation more Sicilian wine is now op- wag himself a Sardinian, and 


ihg exported by bottle, but stiil so ^ 00 j s yj e . party’s present 
J iny ftaction of the Secretary - General, Sig. Enrico 
Berliuguer, who was born to 


979 


DJ.C. 


ieir very presence. - — 
popular mood. ' Rome Is a 

lace from which .to get money. ...» „ 

opefully with .the minimum of both islands, physical f n :t total output. 

,.....p.!re W::an?arsTC omesticinterf g rencein S i cilian . fi»aruflure is weak, and in- : j^d fragmentation is also ooer m iddle class parents in 
nd Sardinian affairs, and both’ ttos^ os one reason why aggravated by the traditions of S££ari not far from th ehome 
)CI dands do enjoy a considerable %he .laajor national indus- the people. A Sardinian fahner f hig ’ cous in Sia Francesco 

egree of local autonomy. They, trial glows could afford to set . a smallholding and three cossiaa. the pres sat Christian 
•r T9 76 re free to raise their own taxes, up projects there, since new sons divide up the farm Democrat Minister of the' In- 

nd to spend their own money, ■ industrial units • often had three ways. More damaging terior- It is a kind of family 

«i.: l csea. - - ' efence and foreign policy con- to he seif ^contained— and large still, . although everything is, of mafia but tbe more rea] and 

* "* W..an derations apart.Th real human- ; enough, 'both 4n their concept pourse, relative, a mother with notorious thing still thrives 
_ erms, th^; are also poorer -than airf.jhek. -Slacking, to provide a single gold chain -m| d t^ 0 sou th across the water in 

St I ny of the other Italian regions, mdstoftheir own essential an- -daughters will break it in two. gieijy. 

rmws nd increasingly they want: to . ciflarysarvices, including water. . The sentiment is impressive, but 

now why. . - drainage, -roads and such like, .tht-' -results destructive. But 

Of course, they actually -know-' TBe, concentration of industrial'. 
he answer, which has not only, complexes in the Augusta/ 
a do with their physical separa--.^ : jj^odg a oxea, coupled with the 
ion from the mai nl a nd and the -deep^Water facilities along the 
iative harshness^ of ‘the jiitervening coastline, has made 

w v, -LS ^ ** ^stsm Sicily one . . 

,'hich. together, main, ml refinery and 

etting^un petrochemicals Concentrations CONTINUED FROM PREVIOUS PAGE 

InSardinia,. ' 

arSSe particularly' Mod -*«»r 0* • Cagliari cjpiwled port. And together with ing recognition on the .part not 

-th^mKoiw: atiri hnth - Mooted ison has reorganised the the ipral exodus, which severely only of the authorities hut of 

ive ^oto a marked reluctance' old and ainc mines, and drugged the agricultural base of all the; country’s political 
> invest -whatever - uersoaal* heaihy at SulciaJgJesiente there the^area, the lack - of any effective forces, including the Labour 
-sources their have bn" their- & a bagst* if now under-utilised.' iohifetenh industrial and develop- movement, the Communists 

| W i ^ SiiS. ^Sv on alumina plant to treat imported meat policy gradually eroded mid the Christian • Democrat 

Wr ' fttt» ■ riSf SKnJL: bauxite, waih ithe U^., Sicdiy is' another traditional sector of the Parft-, timt toe problenw of 

^ 1 nd ^£5Z£5&: “bm™ r Stiil - toe only otoer producer in region's economy composed of a Naples jti area rat te 

aior P ' state; ' semi-state and real quantity. oT sulphur, to-day mymd of smaU 1 artisans. ? Jnt A 

rivate . conglomerates likea&alwaysavital commodity. The recession and toe oil crisis ^ ^to ft'is 
[ontedison, ... ANIC, ..the. .But all this development— on worsened toe problems. In a k- nr£ 

hemicals' "subsidiary of . ENT, both islands — has, to a real sense; Naples represents today The propolis in® 1 *™* ■ ‘ 

imniire™, ^liani^ra.S. sense, been impaled. ot .q E.1 

* m PDrrinTt tA dl^VAlnn E 











_ in. the 

At ow eid of the city," crammed dev ?lop smaU'and 

by b&Jdiags, is toe Bagno li steel- medium-sized mdostnes, the 
wtift^omT of toe oSSt in Italy agricultural and tounst sectors. 


with -a current annual production “ d H a £ ° : popular 

capacity of more titan 2m. tonnes, housing ventures. 

It is controlled by toe State steel Agreement may also finally 
copgkHnmtc, Itelslder, and is ex- be reaped -on_ ^number of. 
parted to -represent a total loss outstanding infrastructure, and 
of uttK for the State steel giant construction projects, including 
tit' year.- The archaic plant was a J? ew t S0 ’C?Ded Cwhro 
to have ' been scrapped and re- Direzionale. a satellite town 
■ptaced by-a new Integrated steel grouping together the city s 
cbmpL with a capSty of 10m. ^^stntive deparbnents 

$**2L "ZSTLZ 

names. lThis projert W ill involve - an 

-pw . ■ -j investment of some L600bn. 

uroppea and, although not a productive 

, . j. r . . -,, A investment as such, it will pro- 

. to:toewake .ortoe world steel ^ to ^ term a ^ 

cmis the. pr0i ®^ ^„ d siderable number of new jobs 

authorities : ease toe city’s over- 

flnenHy introduced proposals for crowJingi Work ^ aUo . now 

the restructuring of the entire carried, out to clean up 
steel industry which included a tbe Gulf . of Naples. 

?5 ,syssj«s! 

nr^SMB r?t 

* { battle for_ control of 

he authorities toM ^ agreed thedty> but it Js unlfte] to 

to .amend their earlier propwate }ast long , promise * of 

k maiutam nmploymmt levels past the dty , s first 

|nd -to taject some L450bn. of Deft. w i n g administration have 
new funds fw toe BagnoU .recon- $Q ^ come tQ notbiD g TOere 
struetjon programme. They hope js more difi iu usion in the air 
that the plaut wiU .eventually at bo pe. According to "the 
least break even. But clearly toe man j n street, only a 
overriding, issue is a social rather ™ miracle " can save Naples, 
than an economic-one. P R 

Indeed, there is how a grow- lr.D. 


,kins P 1 





INTERNATIONAL COOPERATION 
IS THE RIGHT STEP 


The Algeria- Italy gas pipeline: 2.500 kilometres long, 
12,000 million cubic metres of natural gas a year, a 
huge system of pipelines connecting three nations 
and two continents across the Mediterranean. 


An extremely large financial'commitment io ensure 
energy supplies to Italy. 


More than 160 kilometres will be under water, in the 
Sicilian Channel and the Straits of Messina, reaching 
depths over 550 metres (1.800 ft.). 


Algeria.Tunisia. Italy: a project and an undertaking to 
make progress together. 


A technological challenge that has never been at- 
tempted before and will call for radically new solu- 
tions and equipment 



A 


KtSmia 




grou 





\ 


\ 


an Malian newly-formed 
organizational structure grouping 
five IRI-Ffnmeccanica companies 
operating in the 
thermoelectromechanical 
and nuclear sectors 


ANSALDO 

BREDA TERMOM ECCANICA 

ITALTRAFO 

S1MEP 

TERMOSUD 


ANSALDO Group’s 
Tasks 


ANSALDO Group’s 
Organizational Structure 


to promote 

the overall capacities 


AH the operational units, such as companies, divisions and plants, have been 
linked to. ANSALDO- t.e. the Group’s leading concern - and their previous fields 
of activity have been organized fn four main business areas: 


.to develop 

increasingly advanced technologies 


to gain 

1 new competition areas 


ENERGY»TRANSPORT»INDUSTRY«INDUSTRIAL PRODUCTS 

air of which operate at present in accordance with fully independent although 
closely integrated managerial lines. 

With 7 divisions, 11 plants, 16,000 employees and an order book totalling 
540,000 million liras in 1977, 

ANSALDO Group takes on a leading position within. the Country's 
thermoelectromechanlcal and nuclear sectors. 




ANSALDO 

BREDA 


4? V?/ 


v «d jSS 1 TERMOMECCANICA 

k >^S» ^ ITALTRAFO 


TERMOSUD 




ANSALDO 

ITALTRAFO 


INDUSTRY 


2 >] 


% INDUSTRIAL j 
PRODUCTS 



ANSALDO 


ANSALDO 

S1MEP 


ANSALDO Group a Genoa Italy 


A turning point in strategies and structures 
An answer to international competition 






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BariK founded in 1472 Roan# funds Lit 286,071,384,002 . 


WORLD-WIDE BANKING SERVICES' 

Cdiifc Atttirsns. MONTH PASCHI lor Head Oftru ar.C M BvikAbs 


■&:MSWA. 


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■ SAL IMflEn I CASTLE 
The Ban* s Head Oit-ea in 5*U 





380 BRANCHES IN ITALY 

Subsidiary banks: 

BANCA TOSCANA. FLORENCE 
CREDITO LOMBARDO. MILAN 



Main affiliates abroad: 


A1.C.I. HOLDING SA. 

BANQUE DU SUD SA. 

EURAMEfflCA INTERNATIONAL BANK LTD. 
ITALIAN INTERNATIONAL BANK LTD. 
LUXEMBOURG ITALIAN BANK SA. 

UNITED BANK FOR AFRICA LTD; 


Luxembourg 

Tunis 

Nassau 

London 

Luxembourg 

Lagos 


Representative Offices Abroad: 


FRANKFVHT 

Pc Itmi* I M • eooo r »nMur? .im Wj.i 1 
Tal*. 4167*} .-41MIJ 

LC4C0N 

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Iui»> Mri?J I«*pnene: 9J63W0 
SiHliiPOPE 

S.-i> 1336 Occsn 9u*t«q. 

K> CiU.c- Ouu# SmtaBun* ' 
T-kc;4tir Tri^phonir 912633 


CORRESPONDENTS ALL OVER THE WORLD 
MEMBER OF THE SWIFT SYSTEM 


Cassa 

^xdi Risparmio 
( r ))) di Genova 
&>/e (mperia 


Bank established in 1846 in Genova, Italy 


The Balance Sheet as of December 31, 1977 closed 


with a net profit of Lit. 2,519,000,000 


Reserves Lit. 4S,S02,OOO f OOO 


Deposits Lit. 1,773,728,000,000 


Representative Offices: 


Frankfort/SL: RossmarkL 21 — D-6 Frankfurt am Main 1 
Phone: 287251-2-3. Telex: 412613 F1GEV 


London: 


Wax Chandlers’ Hall. Gresham Street 
London EC2V 7 AD, U.K. 

Phone: 606 8225^-7. Telex: SS6529 FlGEVLON 


New York: 


375 Park Avenue, New York, N.Y. 10022 
Phone: 754-1920/30. Telex: 666491 FIGEV NYC 


42nd INTERNATIONAL 
HANDICRAFT 
EXHIBITION 


FLORENCE 

from April 22nd to May 4th 1 978 
at the new premises 


The widest display of the world's handicraft products 

In 1977: 

2880 Italian exhibitors and 33 foreign nations were 

present 


For information : 

M 0 STRA INTERNAZIONALE DEU’ARTIGIANATO 
Fortezza da Basso "Ml 29 FjREHZE (Italy! 




WHEN EARLY last month 
Italy’s long-ruling Christian 
Democrats (DC) decided finally 
to accept the voting support In 
Parliament of the Communists 
(PCI) for a new minority DC 
administration, a formal party 
statement made it clear that 
the country, remained firmly 
committed to the Atlantic 
Alliance and expected that all 
the parties hacking the Govern- 
ment would make this clear in 
their various pronouncements. 
In other words, if the PCI was 
finally getting a direct role in 
the governing formula, it had 
a responsibility to be seen to 
share a commitment to the main 
tenet of the administration's 
foreign policy. 

What of course the DC was 
doing was underlining for 
the Americans and for Italy's 
other partners in NATO the 
principle that acceptance of the 
Communists in the parliamen- 
tary majority did not represent 
any alteration to the country’s 
foreign policy. Yet the real 
significance was that the ruling 
party felt the need to issue such 
an assurance. 

After all, the Communists 
have long insisted that- they as 
a political party accept Italy's 
continued -membership of 
NATO, as indeed they accept 
all of the country's other 
alliances. True, the acceptance 
is somewhat qualified, for the 
PCI's public argument is not 
in support of NATO as such, 
but rather an assertion that any 
unilateral withdrawal could up- 
set the present East-West 
military balance which, in the 
Communist global view, is a 
stabilising factor in the 
interests of world peace. 

The important factor, none 
the less, is that the DC felt the 
need to issue a reassuring note 
to Italy’s friends in the West 


against a background of specu- 
lation that direct Communist 
participation in an Italian Gov- 
ernment would cause both 
NATO and the European Econ- 
omic Community to review 
Italy’s continued membership. 


Risk 


It was argued — and no -doubt 
will be again — that this would 
be a very real risk in the case 
of NATO, since Italy is a mem- 
ber of the Alliance's Nuclear 
Planning Group and thus has 
access to a great deal of re- 
stricted — and some highly classi- 
fied — information. The theory, 
and almost certainly the prac- 
tice too, is that PCI Ministers 
in an Italian 'Cabinet would be 
privy to some of NATO’s top 
military secrets, although other 
voices have argued “that the 
Russians probably know most of 
them anyway,” 

For the moment, however, this 
situation does not arise, since 
the. political compromise allow- 
ing for the formation of- the 
new Andreotti Government fell 
short of direct PCI participa- 
tion in Cabinet. Equally, and 
again for the time being at least, 
there is no change in Italian 
foreign policy. 

The country remains commit- 
ted firmly to the Western Alli- 
ance and is an enthusiastic 
supporter of the EEC, of which 
it was a founder-member. In- 
deed, tbe Italian Parliament was 
first among the Nine to endorse 
the principle of direct elections 
to the European Parliament, 
and there was considerable dis- 
appointment in Rome over Bri- 
tain’s failure to act so that these 
elections could take place on 
schedule next year. 

Disappointment— yes, but as 
Mr. James Callaghan discovered 


when he visited Italy last year, 
there has been no real irritation. 
The explanation for this is 
important, for it underlines a 
key consideration — in sentiment 
certainly, but also in - more 
concrete ways — in Italy's 
attitude towards Europe as a 
whole. -This is what one could 
term an Anglo-ItaUan axis, 
reflecting in a sense a deter- 
mination by Rome to look across 
Europe to London for a close 
partner, not merely in an Anglo- 
phile mood, but (deep down) 
for a partner to set against the 
risk of a Europe dominated by 
the French and the Germans. 


It is more of a seen-and-felt 
affinity with Britain than any 
direct hostility to a Franco- 
German axis, yet there is a 
residual and deep-rooted anti- 
German feeling in most Italians. 
It lingers on, despite admiration 
far Bonn’s economic muscle and 
the fact that the Bundesbank 
has been a good friend to Italy 
when the lira was in real need. 
It has of course something to do 
with Fascism and the Hitler 
period, but one can also sense 
the notion that the British too 
are good at muddling through 
somehow whatever the apparent 
odds, and this surely applies 
even more particularly to Italy. 
The reflection seen is useful, 
even perhaps reassuring. 


possible defence and economic 
considerations after the final 
British withdrawal from the 
Island in March next year. 

Equally there is a fepJing of 
some responsibility for assisting 
in solving the various issues in 
dispute between Greece and 
Turkey — and not just over 
Cyprus — and Rome was one of 
the ’ first governments to 
endorse — seemingly whole- 
heartedly but with a number of 
private reservations— the appli- 
cation by Athens for . full, 
membership of the EEC. These' 
reservations have of course to 
do with agricultural policy and 
in particular with fears in IUly 
over potentiaTeompetitionin the 
agricultural area (and especially: 
over wines) from low-cost 
Greek producers. 


Italy’s large-scale engineering 
groups' around the world. 
Rarely, a day goes by, and cer- 
tainly no sing le week, but some 
high-level foreign commercial 
delegation is visiting Rome, and 
Dr. Rinaldo Ossola, the Italian 
Minister for Foreign Trade, 
must be setting up something 
of a world record for ministerial 
travels .abroad. 

"Whatever the recurring crises 
—political or economic— at 
home, - Italy’s trade - drive 
abroad is certainly paying off. 
It is an aside, but an important 
one’ for all that, to report the 
comment heard frequently in 
Italy: " If only Italians would 
work as hard at home as they 
do~aiiroad." It is true. 


Diplomatic 


Within Europe and the 
Western Alliance as a whole, 
Italy has a strategic role to play 
in tile important Mediterranean 
theatre, and of course Nato’s 
southern command is centred 
in Naples. Its geographical 
position dictates that any gov- 
ernment in Rome takes a special 
interest in the Mediterranean 
area, and right now it shares 
with France responsibility on 
behalf of the EEC for the 
dialogue with the Mlntoff 
administration in Malta covering 


Yet while Europe (in .econo- 
mic terms)' and the Western 
Alliance (in terms of ultimate 
security) dominate Italy’s 
foreign policy considerations, 
the country’s diplomatic spec- 
train- is not so restrictive. 
Relations with Moscow are said 
officially to be “right and 
proper/’ if not over-warm in 
practice, and Italy maintains a 
full scale mission in Peking. 
There are increasingly close 
contacts with the OPEC coun- 
tries in view of Italy's need to 
import virtually all its energy 
requirements, and also through- 
out South America. Tradition- 
ally the country has had con- 
tacts in important parts of 
Africa, 


■ ' To give muscle- to its foreign 
policy in theory at least, there 
axe Italian armed forces, 
although in fact they -are in- 
tended and maintained as a 
defensive force. Military ser- 
vice is still compulsory in Italy, 
with some two out of every three 
of the 350, 000-strong combined 
armed forces being conscripts. 
Italy, broadly speaking, has a 
population similar to those of 
both Frirnce and Britain and, in 
terms of relative GNP, spends 
on defence not much less than 
Britain — and with almost equal 
domestic party, political con- 
troversy. 

Numerically, the Army pre- 
dominates with roughly 240,000 
officers and men (three in every 
four are conscripts), followed by 
tbe Air Force with 70.000 and 


a .'small but relatively mrf 
Navy of more than 40,000. A1 
to the Army is the Dara-mffi 
Carbabinieri, effectively 
national police force s 
80,000 strong. 

Setting aside' the Tin 
declarations each year to *' 
citizens under anus” on the 
niversazy of the declaratfa. 
the Republic, most m ff 
attaches observing the s' 
from Rome are inclined to - 
doubtfully when asked in pc 
about the likely effectivene 
the Italian armed forces ? 
came to the crunch.” Yet i 
is a general consensus thi 
recent years moral has 
proved considerably, as ha 
equipment provided to all ’ 
services. 

Like much else in ltaly 
Services have that extra 
of fairly useless bureauc. 
but it should be rememl 
that much is being done i 
educational and so rial i ~ 
through the system of mi . 
service to enable thousan 
young men each year to 
a better start In Civvy S 
In a country like Italy it 
useful indirect charge or 
defence budget, less qi 
fiable of course in strict mi 
terms than, say, the troop; 
centra ted close to the L 
border with Yugoslavia ( u 
Tito ” is a fairly constant 
Sideration in Italy’s ft 
policy), but an important 
off in social terms for all 

D 


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Yet many of these wider 
diplomatic contacts are essen- 
tially in furtherance of com- 
mercial contacts, not just direct 
sales following the Sag but an 
ever-increasing penetration by 


Howtobe 

International 


Farms beset 


1w nrnKIpmc WithfollT 

by problems Italian patents 


AGRICULTURE, LIKE energy, 
represents a colossal strain on 
Italy’s balance ol payments. Last 
year, the country's agricultural 
deficit totalled nearly L3,OOObn. 
or close on £2bm, despite a 3 
per cent, decline in real terms 
of food imports and an 8 per 
cent drop in imported agricul- 
tural raw materials due to the 
continuing economic recession 
and the subsequent slowdown 
in domestic consumption. At the 
same time, however, farm gate 
production last -year fell by 1 to 
1.5 per cent, compared to 1976, 
partly as a result of a particul- 
arly bad spell of wealher but 
essentially because of the tradi- 
tional structural and historical 
problems that have afflicted 
Italian agriculture during the 
last decade. 



. ;• 

v'c-'n- 




■ ■ K/ ■ 
: v -:. ' • ■■ ! 


But unlike energy, of which 
Italy has to import nearly 80 per 
cent of its total annual need, 
agriculture once formed the 
basis of tbe Italian economy and 
Indeed was instrumental in the 
process of rapid industrialisa- 
tion that has taken place since 
the mid-1950s, and which has 
transformed Italy from an agri- 
cultural country into an essenti- 
ally industrial nation. In return, 
industry has done little for 
agriculture except continue to 
erode its already weakened 
structure. 


Farmers in Naples using a bulldozer to destroy 
tfiousands of tons of peaches last year. They were 
angry about the low price of the fruit. 


Dropped 


In the early 1950s, more than 
42 per cent, of the country's 
population was directly em- 
ployed by agriculture as against 
32 per cent, in industry and 25.5 
per cent, in services. By 1961 
the agricultural population had 
already dropped to 28.9 per 
cent., while industry now repre- 
sented 40.5 per cent. This 
deterioration has continued. It 
is now estimated that only about 
15 per cent, of the country's 
working population is currently 
employed in agricultural activi- 
ties compared to nearly 44 per 
cent in industry. 

A combination of historical 
and social factors are at the root 
of this decline in the country’s 
agricultural population and the 
subsequent distortions this has 
‘provoked. From the beginning, 
repeated land reforms have 
never been motivated by a 
serious and concerted long-term 
view for the development of this 
crucial sector -of the country's 
economy, but rather by electoral 
considerations especially at a 
time of the apparently irrepres- 
sible advance of the Communist 
Party. Put crudely, land reforms 
were yet another . way of 
administering political patron- 
age first by the Christian Demo- 
crats and later, once in regional 
power, of the Communists too. 

Concurrently, there were the 
big industrial interests which 
sought to attract the rural 
labour force to the new factories 
in the cities. At the same time, 
by depleting the country’s rural 
base, fanners and landowners 
were forced to turn more and 
more towards mechanisation in 
order to maintain competitivity. 
But while mechanisation helped 


to modernise agriculture, 
especially in the northern and 
more prosperous agricultural 
regions of the Po Valley, this 
process was never adequately 
monitored. It led to a random 
over-mechanisation of farms 
which sent production costs 
rocketing. This was further 
exacerbated by the low quality 
of farm management and 
accounting, even in some of the 
most modern farmsteads in 
Lombardy . and the central 
region of Emilia Romagna. 

In the south, the consequences 
were even more disastrous. Un- 
like the north, where only about 
5 per cent of the population Is 
engaged in farming, agriculture 
in the south is still a major 
employer with more than 11 per 
cent, of the population living 
directly off the land. The 
process of mechanisation never 
came to the south as it did in the 
north. Techniques remained 
archaic and feudal despite 
efforts and capital -to improve 
irrigation and set up a necessary 
network of infrastructures to 
enhance, both in quantitative 
and qualitative terms, the 
agriculture of the Mezzogiorno. 

The process of industrial 
transformation had another 
major disruptive, effect With it 
came a massive consumer boom. 
In turn, the country’s domestic 
agricultural sector could no 
longer keep pace with it Not 
only did it help to accelerate 
the rural exodus to the cities, 
but it had a drastic effect on the 
country’s food consumption pat- 
terns. Only 25 years ago, Italy 
was able to feed itself from its 
own agricultural output. By the 
early 1970s, however, the situa- 
tion had completely altered, and 
while, for example, domestic 
meat production, had risen • to 
about 23m. quintals, consump- 
tion had already reached 34m. 
quintals. Put in other terms, 
while in 1936 average por capita 
consumption of meat amounted 
to barely six kilos. Iasi year the 
average totalled about 40 kilos. 
Emphasis in farming therefore 
increasingly shifted to quantity 
rather than quality. This in- 
crease in demand was not only 
limited to meat In other sectors 
too, like cereals and dairy 


produce, demand overtook pro- 
duction. 

A further blow for Italian 
agriculture came with the 
country’s membership of the 
Common Market. The Common 
Agricultural Policy has 
effectively concentrated more 
on support policies which funda- 
mentally have protected the 
consumer rather than the pro- 
ducer. EEC farm subsidies are 
widely regarded here as a 
stimulus to high costs and often 
inefficient production, and the 
Italian agricultural authorities 
have repeatedly campaigned 
against the Community's com- 
pensatory price mechanism 
which, they claim, has acted as 
a disincentive to local pro- 
ducers and encouraged imports 
from countries like West 
Germany with a more de- 
veloped and modem agricul- 
tural structure. 


plan,'* aimed at promoting 
domestic meat and cereal pro- 
duction in ' tbe north and 
modernising agriculture in the 
south. It is an ambitious plan. 
Over the next ten years, the 
government intends to Invest 
some L.5,600bn. (£3.7bn.) in 
agriculture with the emphasis, 
in this order, on irrigation, ani- 
mal husbandry, fruit pro- 
duction and forestry. But it is 
not just a question of capital. 
If the recovery programme 
succeeds in the long-term, it 
will have to be backed up by a 
widescale education process, 
especially in the south where 
agriculture is as backwards, if 
not more so, than in future Com- 
munity member countries like 
Greece or Portugal, not to 
mention Spain. 

The task is a formidable one. 
It will also involve in the longer 
term a general reform of tbe 
entire food wholesale and food 
manufacturing industries which 
are currently more closely 
linked to the Italian city con- 
sumer than to the farm pro- 
ducer. Indeed, in the meat busi- 
ness alone, the trade is con- 
trolled by barely 13 large com- 
panies which hold a virtual 
monopoly. 


Our parents are four eminent 
Italian banks-as oldas banking 
itself.The Banco di Napoli, 
Banco di Sidlia, IstitotoBancario 
San Paolo diTorino andMonte 
deiPaschidiSiena. 


Our businesses Internationa!, 
but the emphasis is naturally 
on ourltalian connections. 


Were strong on Lire exchange 
and other Eurocurrencies. But 
you’ll find us just as helpful with 
short- and medium-term loans, 
commercial banking services 
and corporate financial ad vice. 




Sii 


Italian InternadonalBankLtd., | 


Prerequisite 


P&OBuildin 


The Italian authorities are 
also concerned over the eventual 
enlargement of the Community. 
There is indeed a deep-rooted 
fear that the Mezzogiorno in 
particular will be made to pay 
tiie price of enlargement. In 
terms of per capita wealth and 
agricultural produce, the south 
of Italy has probably most in 
common with the applicant 
countries, and enlargement 
could therefore have direct and 
damaging consequences for this 
vast underprivileged area of the 
country. Italy has already asked 
firm guarantees from Brussels 
for the protection of agriculture 
in its depressed south, where 
production is mainly concen- 
trated on olive oil and wine. 
The enlargement negotiations 
are already sowing the seeds of 
a long drawn out and ferocious 
battle. The precedents are 
already there in the continuing 
so-called “wine war” between 
Italy and France. In exchange 
For letting Gree.ce, Spain and 
Portugal into the Community, 
the Italian Agriculture 
Minister Sig. Giovanni Marcora. 
has called, not alone, for a 
revision of the Common Agricul- 
tural Policy. 


At Uie same time Sig. 
Marcnra has launched an agri- 
cultural recovery programme, 
known as tile “four leaf clover 


The development of an 
efficient food processing in- 
dustry is another vital pre- 
requisite for the development 
of agriculture as a whole. In 
this particular field, the Italian 
co-operative movement has 
recently made some major but 
still limited headway. There are 
now plans to co-ordinate all the 
state’s interests in this sector 
on a more rational scale than in 
the past through a new state- 
controlled food manufacturing 
and processing agency- In turn, 
this is expected to generate 
employment in the south and 
set the basis for the type of 
industrialisation more adaptable 
to the Mezzogiorno than the 
previous unsuccessful ventures 
in capital intensive industries. 

But these are all long-term 
aims requiring a sustained effort 
and the political will to enforce 
them. In the short term, how- 
ever, Italy's agriailtural deficit 
could be sharply reduced if the 
authorities could educate the 
Italian consumer away from 
eating only veal and the choicest 
meats. But even this is an up- 
hill battle. Although the govern- 
ment has attempted to reduce 
the growth In consumption by a 
series of devices, including rais- 
ing value added tax on meat, 
as the Communist Party has 
repeatedly pointed out i-t is now 
practically no longer possible 
to change the consumption 
patterns of Italians. The Com- 
munists too* have campaigned 
for “austerity’’ as a form of 
“ social renewal.”. But the 
ordinary Italian, as long as he 
can find some money in his 
pockets, seems to continue to 
eat butecca and ritella di 
latte, as many times a week as 
he ran. The days when pasta 
was the staple diet of Italians 
are long gone by. 

PJL 


LeadenhaU Street, London EC3V 4PTI 
Tel- 01-623 870aTelex: 885370. . 


the british bank - 
■with an Italian accent 



v -i 


international exhibition 


machinery manufacturer. 


machinery 


BOLOGNA 
8 -12 November: 1978 


•information: __ 

.Vtd SpaHanzanI 22/A • 00161 
(Italy) > . Tel 855,787- 858-3 


ms 


50% 


^ , . . . 

^ April 4 1978 


ITALY IX 


,-r --'ri’T'V V «--iv5 ,£i 



25 


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nts 


'in*:* v.. 

.* y ^* ?*■«. 

* L« A 




p£i 


■*•3^ 

J* s L -J;i"=e 

Kftt-.. "«• 

*«£■** 

**r_i t*. •■ 


,*i*' 

■ : 



;* I- \;v ^ed S t S b c OT «' th e overall growth rate, of 
a .->_. n r.- tr t:3i.K-^ 5 - 5 per. tent 1 '. lap: international 
'" V,B - c.-^ JEtrade as a. whole. . ■. • -. 

Thii boosted' Italy’s' share-. of 



°V-h t\ ic ^.Italy’s. major i .world .trading 
l ‘ ; *» *o ena n'u®. W s competitors helped to maintain. 



-ai ^ I i*:CX>ntmuedto open new frontiers 

buo-> , ! 2* r t0 a nation which has been one 
■it y ? {jj. ,o£ the hardest hit. in- the indus- . 

.ts ti>-. n u ''‘. !a .' :tn £it ,t rial world by the. rise in oil 
.trat.-Y ■,r y ‘ ^ aifeprices in the last five years. 

■Qfj- w ;.„ v 10 8*i Italy, is - almost entirely tie-- 
3 ■ 1 . . g , u S°:littafpendent -on imported energy, 
' a ' r ^' tonsfrand- ofi imports', last year cost 
!C" ■ , ln L7,391bn;, a 9 per cent 

; n , £Tl >WiTte increase on 1976 -despite a 2£ 
30C:aJ terat^jper cent' -fall in. the volume of 
on imports. - .Bat. trade hr other- 
goods showed a respectable sur- 
plus of X£,172b& 1' ’ 

This was more than four 
nes higher 4han- the -previous; 
^ year’s figure' and was a result 

- of the rise in exports and a fall 
I 1 I in imports , caused, hy the slow- 

KJ ' ^ down in domestic business. The 

. overall trade deficit for 1977 
| was L2,2l9bru, a 60 per cent 
redaction from 1976 levels. 


Wine has been one of Italy’s more successful exports , particularly to the UX. 
These vineyards are at ValpoUcella in the Veneto region 


Dur 

irents 


ir eminent 
das banking 
Napoli, 
utoBancario 
jandMonts 


:rnn::o!r=J, 

-naturally 

Cwtion?. 

■e exchange 

ror.cici-.Bu" 

hdptui'dth 

l-tcrmloan^ 

^services 

** • i “-* 1 


Continued- growth in export 
thjs year will need a -sharp curb 
on rising Italian .labour- costs^ 
ad! Prime .' Minister VGiu&>; 
Andreotti has repeatedly made 
clear in and out of -Pariiaineiit: 
With the inflation rate this year 
officially. forepM - at-, 13. 
cent, the rise ip l3ie- ' *"*■ 

of Italian export^ iS i _ 

to ' require’ further devahiartion 
of the lira, , at Jeast' agaidSt' 
major European cqrreuries..T1ie' 
fall in the dollar, * by contrast; 
has proved 

the past few-' mont£>-.It 
hfiTTMad • ‘ ■ maintain i-- .-■- ’ovetel 


self hi the form V s stream- 
lined system for export credit 
finance and insurance which 
Government officials- .hope will 
soon put Italy on a par with 
Brjta.in . and. JpijsuKft ip... this 
sector. . i 

By this supunes; when the 
pew law come§Inip full opera- 
tion, Italy wjty for <tfae -first time 
be' able. -in provide official ex- 
port credit insurance on short- 
term as well ?k medium-term 
; credits.'’ ‘.Tbi&w5C§etp many 
■B?nall; companies . .in jwticular 
which hitherto hjavu been un- 
-able 1 ta grant' Icr^dit to their 
-cli^irts^eciuse ;<ft^ck °* “'i 


helped - maintain 
stability for Italian ..curreory 
markets and v baa 1 sharply" re-', 
duced the prfise: •pC|J 5 »esrt|ai; 
imports like oili : ■-'• ■ 

Peripatetic ■ 

One factor aiding Italian ex- 
porters ; has been '&e compara- 
tive latenessofltaiysindustrial 

revolution;' ‘which has endowed 
them with a more .modern .gen- 
eration of industrial plant tb 3 ® 
many of their competitors-MoSt 
recently a new contributidn has 
come from the .Govjeriiiiient'it- 


The new" law i^ tM-braiuchiJd' 
of Italy’s permateuct Foreign 
- Tteidte ^msten^I^tRmaldo 

_ n ._ Jaro . plans Gov-, 
ornment guarantees^ 'op ' loans 
to- Italy ;■ by - formgn bahks: and 
governments ^'finance Italian 
’ ide with .fiiird^ countries- - 
^jrdndfef^TWo years .of? 

Gssid^lias been a?, 
oonstjant" visitor w ;‘tbe Middle 
East '• EasterxwTEurope and 
XatlnAmei%ln search of both 
'Ccfirtekcrts f^Itaban* companies 
.-gnd 'fin Ba^ 1 tor balance 

of "payments. Triangular finance, 
deals the: type envisaged have' 
so fiaf Hot been concluded, but 
the spectacular purchase by 
Libya of a 10 per cent, stake. 
ifirtlHat last -year was an 
enconraging- sign of the type, 
of '.co^pmntion business leaders 
wj^lfr fMce to see extended. . 

^ Government export credit fin-. 
anpiragiiac been a major stimu- 
lua to'triide between Italy and 


Eastern Europe, where Italy Is 
alone with Britain among West- 
ern industrial nations in run- 
ning an overall trade deficit. 
Groups like Fiat, the state engi- 
neering group Finmeccanica, 
and Montedison are negotiating 
major contracts with Russia and 
other Comecon countries, and 
this is one of the areas where 
Italy would like to apply the 
triangular finance project en- 
visaged under the u Os sola law.” 

Trade with the OPEC coun- 
tries has been one of Italy's 
biggest successes, with Italian 
exports to the OPEC area ris- 
ing to 13 per cent as a propor- 
tion of total. exports last year, 
from only 5 percent in 1970. 
This puts Italy second -only to 
Japan lia the rite 'of growth of 
its sales to the oil exporters, 
and underlines the traditional 
flexibility of Italian businessmen 
in dealing with their clients. 


„ Fiat the State. 
I. and Fihraec-; 
canica'are at the forefront of 
internadbna] jErade negotiations 
with OPEC countries. ENI is 
playing a\leading role in the 
industrialisation of Algeria, 
where its subsidiaries are build- 
ing oil and 'gas pipelines and 
textile plants and training the 
workers to operate them:. Also 
ftT Algeria, Flat is currently 
competing with Renault . of 
France- i and West Germany’s. 
Volkswagen for a prestigious 
fi2bn. car plant contract. Italim- 
pianti, member of the State ERI 
group, is building a $2.5bn. 
steel plant at Bandar Abbas in 
Iran, and is negotiating for a 


similar contract in Brazil. 

But of all world markets the 
EEC is by far ihe most impor- 
tant to Italy, absorbing almost 
hat: of Italian exports and pro- 
viding a comfortable surplus on 
trade in 1977. West Germany 
and France alone account for 30 
per cent, of Italy's foreign sales, 
while trade with both Britain 
and West Germany gave Italy a 
surplus of several L. 10 Qbn. in 
1977. 

But sporadic skirmishing with 
Italy’s Continental EEC neigh- 
bours over whait these nations 
see as dangerously high levels 
of imports of Italian shoes or 
ladies’ tights can cause diplo- 
matic-headaches to Italian Gov- 
ernment officials and a trade 
war in steel was almost 
threatened last autumn because 
of heated French and West 
German reaction to cut price 
sales of steel products by the 
small private steel companies of 
the northern, valleys around 
Brescia. . • , 

On the '-Italian side criticism 
is frequently levelled at the 
EEC’s Common . Agricultural' 
Policy, which, officials in Rome 
claim protects the interests of 
other farming nations like 
France to' the.' detriment, of 
agriculturally underdeveloped 
Italy. Meat and grains are 
cdstiy import' items for Italy, 
while Italian fruit exports to the 
EEC db not receive the same 
privileged treatment given to; 
some other farm products.. 

By a Correspondent! 




•' J£j #■ •';» - rr \ r- -r^ " 




^570- 


:nu 


A 


■rr tc Vho iatimt and -tw basic fao- 

Variable 1 e xampfe d ; '^Ja - t5fs.^The first is the result of 
“ Cathedral in the desert'"— one wbat it claims tobe lu( j k - 

of thorie: capital-inteMive- iadus- I^ojected in - the- sixties at a 
trial white elephants built to .time when the Italian economy 
SomoS:iaSrialiSation of was in.full. swing,, the idea was 
. ItSv- s - depressed' • Souths It -to- create m an-, area-of more 
rr:V^T- staSs in the suburbs of Naples, tinui. • Z5m- square metres a 
- L - ■ tJTdpSe^e^ of ^ the^cr^-of inodd Suited, car maniac- 
the Menogiorno, where^n?^ 8. turing 

pS cent of the' L5m.' inhabit- .ximntemipted production cyde 
ante are 'officially unemployed. • to prodn^ « 

Tt'tnnic bareiv threes ^jpeazs? -tit economy car- with the presage 
hiiild at a cost of some LSSObh. trade mark of Alfa Rpmeo. The 
sBK Planrwas orl^ally designedto 

Februmy osre-tbe-Aifa StrfTar produce only one model, 

^■ntnnt at P n T T i if r ^ ann d’^ 1 **^ * 1 * 31 * tially for the demesne market 

^'Naples,. built with the precision per C “ 

, ofa Swiss ' euckoo^-elociki bas^ pro*«ti<m for export.- - ■ 

!’ jepresehtecL one of the. biggest But by the lime- fuU produc- 
siiKle problems of ' its parent ,tion -started_ihe dojhestic mar ^ 
eroup the giant Italian State ket had dramatically- 
concern IstitUto] ^ 

stnizione IndtiSr^ W>-> ^ 

^.ceti erf nq mqre v ih4 n P®t; 

exports’ now', represent 
jpeac cefflC oC AKa Sud’s 
_ _____ turnover. :.WS Jn:.tunx 

reoemisskms off 

duces on a the 

care. Its ^ 

estimated at ' bad _to be made :to a*»pt a 

£6Q|n.- Its &<>**■ JSJShis the different, demands of the 

trolbledindusmal relation hte - V 

already gone into local legend- expur ... • 

atreaay gw . .. . ^ tile .first msexice it, was no 

- ! ‘ 'i'-wi. V v lovgpc - viable ^ produce only 

- ' - 0 ne model- Production, as it is 





-■ . - ’now, had -to focus. «m> range,, 
14 1974 the plant was crippled 1 limited, of • ■ flifferent 

by 1^52 dhofficial strikes.’ ™ jnodels. ;But the >plant.,had,not 
number rose 5 - to fir-rMWd 1^3 been! cdnceS’ited ' fbr . this, puiv 
tbe^,loilowing' , -’ 1 ^ar.'and snh^-. pose. '_-31-irt5 therefore neces^ 
queitly dropped, to 3^277 ana »3; ^ t0 effect a/ whole series af 
in 1976 aridv-1977 respectively changes .and hew jnvestments 
It has been -perhaps the . most t( j. lad^pt__the , POTdghano corn- 
expensive - social .welfare hand- piex to Its pew market -outlets; 
out ^o promote employment in particularly : , West -Germany, 
an hrea 'of .Intense’ traemploy- jfrzace and Britain. '* • • 
meqt ever-made by'the : ItaEan. fins -the cwnpsny 

authorities: And. until si-recent :jl(m propc^ V^ a s^oad 
agreement was reached with the nearby which will employ 

Sons, it looked .a8 if after.^ne jy2p0_- Although; the go- 
hardly five years of -productive gie constiruction of 
activity the ventorejvas. on the. .the nete- plant- has- in theory 
verge of b^gwomid. np; , , been given, the project hing« 

/ The State company attributes., . on whether Alfa Sud an m the . 
' the fatture s6 ? 'fiaf of the Alfa shorter : term . reach relatively 




sound production levels in the 
region of at least smhe 550 cars 
a day, or 150 more than the cur- 
rent- daily average. 

. To improve productivity, the 
unions, the .company, and the 
shop floor workers recently, 
reached an agreement aimed at 
improving industrial relations. 
This is perhaps the most deli- 
oate problem of Alfa Sud and 
ties at tbe root of its failure 
as an industrial venture. But in 
tom' it is also the consequence 
of ithe nature of the project 
itself. ' As one -trade union 
delegate recently remarked in 
Ijlaples: “To build- one of tbe 
most -.technol ogically advanced 
plants ln Western Europe in 
an area with no industrial tradi- 
tion .to speak of is to ask for 
trouble.” And trouble started 
from the very first day. 

The company found it could 
not, choose its own labour force. 
It- had to.take on all those work- 
ers Who had been involved in 
the construction of the plant 
.Itself /and who “in a' matter of 
-weeks! were transformed from 
builders or, brick-layers Into 
mechanical workers. Further- 
more,. it had no choice but to 
take on a. mass of people. with 
little orrio industrial experience 
sent by local and. regional lab- 
our exchanges, the policy being 
that each labour office was allo- 
cated a certain number of jobs, 
at Alfa Sud. It led to abpes on 
W grand* seal e— the. dishing out- 
'df jobs In the form of . blatant 
political patronage or indeed 
the: sale , pf jobs ;on the black 
market Air sums as high as 
LSm. 

.‘ Witii- all its industrial think- 
ing geared' to the north of .'Italy, 
Alfa Sud had to cope with the 

southern mentality. Even the 
unions themselves found it diffi- 
cult and indeed . practically 
-impossible to . control the new 
workforce. The rate of absen- 
teeism beat . All recorder reach- 
ing peaks of more . than- 50 per 
cent, on’ certain days. A sudden- 
wildcat strike involving- no more 

than a handful of workers £or 


barely half an hour would bring 
the entire integrated production 
line, to a grinding halt 

The company is now hopeful] 
that after the immense difficul- 
ties of the plant's first few years, 
the labour situation will gradu-| 
ally improve. It still believes., 
if somewhat cynically, that the I 
Alfa Sud project was and is ai 
sound one.- It hopes that the i 
plant will eventually he able to 
pay for itself. It acknowledges 
that errors were made. Per- 
haps, it says, it would have been 
better to build the plant in 
progressive stages rather than; 
in one full swoop. It claims 
that -it has fulfilled its original 
intention of bringing work to 
and establishing an industrial 
role in the Mezzogiorno’s most 
depressed area. After all, as 
one State manager remarked, it 
forced the giant Turin Fiat 
private car group to establish] 
a presence in. the South at 
•Cassino between. Naples and 
Rome. . .. 

Bii't the experience of Alfa 
Sud is unlikely to be repeated 
in Italy. While priority .is 
to be. given to the South to 
promote ‘investment, the ten- 
dency is. now to focus on a I 
different ' kind of industrial 
development. .Less . dramatic, 
less spectacular, maybe, but 
linked to the region’s natural 
agricultural base. The. concept 
is one of encouraging the estab- 
lishment of small and medium- 
sired industries, prombtiogfood 
processing and tourism,, or, in 
the jargon, the “agro-tourist" 
business. 

Meanwhile,, at the . end of 
every shift outside the impres- 
sive gates of the avant-garde 
Alfa Sud plant, a makeshift 
market composed of pedlars sell- 
ing all -kinds of goods, from 
vegetables and shoes to contra- 
band radios and cut-price 
American cigarettes is a vivid 
reminder of the realities of the , 
Mezzogiomo and of Naples. 







COMMUNICATING 
IN A BIG WAY 

The Rizzoli Group has in recent years been more prominent than any 
other in its outstanding mass media achievements. The Group's growth 
reflects its capacity to develop the dissemination of information. Its 
unitary business policy combines the full range of mass media through 
the publication of 7 daily papers and 22 weekly and monthly magazines. 
Its newspapers cover a large part of the country and include the 
' Corriere Delia Sera', Italy's most widely read and reliable daily. 

Rizzoli Magazines cater for the most extensive possible range of reader 
interests, from politics to current affairs, from business to travel, from 
women's fashions to strip cartoons. 

Bookselling is the Group's longest standing activity and it is one of the 
most developed in Europe and America. In the art book sector Rizzoli is 
the second largest publisher in the United States. 

Argentina, United States, Spain, Egypt, Mexico and Malta are countries 
in which the publishing activity of this Group is rapidly growing and 
developing. 

Television is a part of Rizzoli's plans for the near future, while the cinema 
is one of its oldest branches, ln this field the Company handles, the 
distribution of Italian and foreign films in various parts of the world, 
including the United States and Latin America. 

v • 

All this makes Rizzoli Italy's leading publisher, among the major concerns 
watching the world from Europe. Rizzoli is a thoughtful observer of the 
social realities of countries with ..different traditions, cultures and econ- 
omies, where every year the group, proves its ever-increasing capacity to 
serve and bring information to man in our time. 




•zgzagzaezxz* 


six banks, 

an important partner 
in those italian regions, 
that count lor much. 

330 branches... and behind each counterttie organization and the efficiency of six- 
leading popular Banks.which have joined their programs and work in the 
“GRUPP0 NORDEST 

These six Banks, together have not only the size of a big Bank, as regards • 
Customers and. Service, butsomething more, too: the opportunity of being in 
dose relationsralso vyith small firms, of being present where there is the real 
economic life. Lombardia, Venefia, Emilia produce, alone, 37% df Italian output, 
and carry out 48% of Italian Foreign Trade. 

CRUPPONOROeST 


Lombardy 

WeiietM- 

EmiBa 



Banca Agricola Mantovana 
Banca Popolare di Verona 
Banca Popoiare di Bergamo 
Banca Popotare di Modena 
Banca Popolare di Sondrio 
Banca Popolare di Vicenza 


G&UPPO NORDEST: 
shrBanks and a common work, 
at the big enterprises', as well as 
rite small industries' service. 


studio RUSSO 






ITALY X 


: Financial Times Tuesday April 4 1978 


Palermo Citta d'Arte 


Capital of Sicfly 


option wins the days '• 



For information and illustrative 
materiol: 

AZIENDA TURCSMO DI 
PALERMO E MONREALE 

Villa I Elea 

Ml 42 PALERMO (Italy) 

Tel. (091) 540122 Telex: 74301 


COUPON 


AFTER SEVERAL years of 
public debate and private 
wrangling between powerful in- 
terest groups, the Italian 
Government and Parliament 
have finally derided that by 
1985 Italy needs at least eight 
— and perhaps 12 — new nuclear 
power plants each with a capa- 
city of 1,000 megawatts. 

The commitment. • made after 
mucb hesitation, to the 
“ nuclear option ” forms the 
basis of the national energy 
programme that Industry Minis- 
ter Carlo Donat Gatlin pre- 
sented last December. The plan 
followed guidelines drawn up 
by the Chamber of Deputies and 
the Government's Economic 
Planning Board. 

Legislation is still necessary 
for carrying out the plan, and 
Italy’s severely strained 
finances will be hard put to 
raise the cash needed for the 
proposed reactors. But the new 
programme represents a fairly 
broad, though ‘ uneg^y, con- 
sensus in favour of the nuclear 
solution to Italy’s energy prob- 
lems. 

Italy, along with Japan, is the 
most vulnerable in the energy 
Held of all the big industrialised 
nations. 

Domestic power sources are 
scarce and for the most part 
already being exported. No 
alternative sources of energy are 
immediately available at home. 

The country's current enor- 
mous dependence on oil from 
the Middle East and Africa 
place a heavy burden on the 
balance of payments, the indus- 
trial cost-price structure, and 
the entire economy, and the 
prospect of further rises in the 
world market price for oil has 
been an added pressure for 


Investing in the 

ITALIAN 

MEZZOGIORNO 

The fundamental objective of tbe Italian Government economic policy has been, since 
1950. to bridge the gap existing between tbe developed North and the depressed Southern 
areas. 

The problem could not be met by merely boosting the typical activities of Southern Italy: 
agriculture, craftsmanship and tourism. It was necessary above all to create the 
conditions for a vast industrialization of the region. 

In order tp reach this goal, the Italian Government has been operating in two main 
directions closely connected between them: first the creation of conditions for the 
industrial development by carrying out the infrastructures required for tbe location 
of the new enterprises (road and railway connections, ports, airports; supply of water 
and electricity; territorial adjustments; sewerage systems and purification plants); 
secondly, credit and financial incentives. 

To Italian and foreign , entrepreneurs who wish to invest in the South, the Italian 
Government, through the Cassa per il Mezzogiorno fa special Institution established 
in 1950 for operations of extraordinary character to be carried out an the South) offers 
now three different types of facilities: 

— financial incentives (soft loans and cash grants); 

— tax and labour insurance contributions relief (corporate tax waivers, and a reduction 
in the cost of labour) incentives; 

— promotional incentives (free technical assistance, share participation in industrial 
enterprises, financial leasing and a close technical and financial collaboration generally). 

In order to give the prospective investor a general picture of the opportunities existing 
on the South of Italy for industrial investments, here is a brief summary of the credit 
facilities and services offered: 

FINANCIAL INCENTIVES 

1) Low interest financing 

is destined to enterprises such as construction, modernisation, extension or re-establish- 
ment of industrial works, with fixed investments not exceeding about 17.442.000 dollars. 
The duration of tbe loans has been fixed to 15 years for tbe new enterprises and to 10 
years for extensions, modernisations and re-establishments. 

The loans may be obtained to cover expenses such as purchases of plot masonry, 
electrical energy connections, water systems, sewerages, machinery and equipment as 
well as, partially, for raw materials and semi-finished products stocks. 

The interest rate, inclusive of all accessory charges and expenses, equals 30 per cent 
of die current bank interest 

2) Contributions on capital account (unredeemable contributions) 

These contributions are granted for the construction, extension and re-establishment of 
industrial plants. The contributions may be obtained for masonry works, connections, 
machinery and equipment. Tbe extent of contributions on capital account is proportional 
to the importance of the investments: 

up to 233,000 dollars 40% 

from 233.000 to 2,327.000 dollars 40% 

from 2.327.000 to 8.140.000 dollars 30%. 

from 8,140.000 to 17,442,000 dollars 20% 

over 17,442,000 15% 

The contribution is increased by a fifth both for companies located in the particularly 
depressed areas of the Mezzogiorno and for a number of sectors considered as priority 
sectors for Southern Italy's economy. 

INSTITUTIONS AUTHORISED TO GRANT CREDIT 

The contributions on capital account and soft loans are granted by the Cassa per il 
Mezzogiorno on the basis of the application presented to one of the -institutions authorised 
to medium-term financing in Southern Italy: 1SVEIMER operating in Lazio, Abruzzo,' 
Campania, Molise. Puglia. Basilicata, Calabria; IRF1S in Sicily: CIS in Sardinia. And 
moreover: Banco di Napolt Banco di Sicilia. Banca Nazionale del Lavoro; IML Centro- 
banca, Mediobanca, Interbanca, Efibanca, Islituto di Credito per le Imprsse di Pubblica 
Utilita. 


0De ° f ** Proved expense that the programme political implications of 
1 .MO MW reactors will save will enfcui in order to produce a allegiance the 'foreign countries Montedison has reorganised tS cipLly threugh iL Sjf 
LiObn. in hard currency that relatively small quantity of —notably the U.S.— that would old lead and zinc Stines, and velopment of 

be purpose ene ^y m proportion to Italy’s presumably be required if a nearby .at Sulcis-Iglesiente there farms, given the enZ 

oil from abroad. But even if the need. The anti-nuclear lobby resource-poor country such as is a large, if now under-utilised, mentation of land h^ 
new reactors foreseen in the also feels that the rapid develop- Italy is to be assured of constant alumina plant to treat imported Economic analyse we» « 9 
government plan are function- ment of alternative sources of supplies of 'uranium. And the bauxite With the United States, this more than 20 TennJ 
ing by 1985— which is con- energy is being hindered by the Italian Government itself, in its Sicily is still the only other pro- nothing much has hamS 
sidered unlikely— Italy will still preoccupation with the ** nuclear programme, has given only a ducer in real quantity of sul- although in Sicfly innartv 

have to rely on imported off for option” that has been given vague indication of how it wonld phur, to-day as always a vital some small progress isi 

some two-thirds of its energy priority. handle one of the biggest con- commodity. - made. For instance mor« 

requirements. “ R’s criminal not to invest in cems— storage of radioactive But all this development— on more Sicilian wine’is nov 

The two political forces that said Pro ^^ SQr G iann i wastes. both islands— has, in a real ing exported by bottle, but 

run Italy to-day in unofficial in a r ecent interview m sense, been imported, with pre- only a tiny fraction of the 

agreement, the Christian Demo- he ! tr ? ns i 7 r ® stated . “* . cions little involvement by the output 

crats and tbe Communists, see Sl^ C J a °H* e , dev f lopmeilt °» VlTOUpS natives. This, generally, is also Land fragmentation is 

eye to eye on the essentials of n0n ™ nV S!? naI . \ -true even in the developing aggravated!* the timing ■ 

the national energy programme. • 0n both idands * Physical' I*. tertiary sector, and the rpla- the people. A SanuSJSj 

But organised labour, a vital SSL V* 2?! fraS F Ucture 15 weak * -«* boom tounst conditions with a snail bolding and 

component of the Italian politi- 1 de * d '* his » one reason why of recent years have again son* ^ ^vide up the 

cal system, is split on the issue. ? *.,5™ a pro ' nilclear onI y the major national -indus- been exploited by mainlanders, three ways. More dam 

~ .. • . . policy he held some years ago, trial groups could afford- to set or Swiss, German, Belgian and althoueh 

, Jbe biggest trade union con- says that the technological U p projects there, since new British entrepreneurs who have course relative 
federation, which is close to the means to exploit solar energy, industrial units often had built hotels and associated fad- a sir ,g lp _ nW ’-h,™ . ^ 
Communists, endorses the plans for example, could be developed to be self-contained— and large lilies. danS, £S ^ 

for new nuclear power plants, in as little as three years. enough, both in their : concept . What- of course, has been The sentiment 

The umon says that the nation s The output of each unit would and their backing, to provide lacking is money, initiative and the result*! de£thSt+^ W - 
need for an adequate energy be small — only about ten mega- most of their own essential an- industrial know-how, especially th en detien«iin« nn c 1 ? v ®‘ 
basis to ensure full employment watts per unit But with 100 of ciliary services, including water, perhaps on Sardinia, where the IT , . 

must override all other con- them, the same 1,000 megawatts drainage, roads and such like, people axe generally introverted cStaihlv 

cerns. But smaller Italian labour would be produced as from one The concentration of industrial -in most senses of the word,- yet ErQimd * t J“j c . 

groups have recently been of the planned nuclear power complexes in the Augusta/ they reject advice and guidance both nf 

echoing the warnings from the stations, and. Professor Mattioli Siracusa area, coupled with the from “abroad,” which means a £, U n j P *** - 

nation's small, but increasingly adds, “their small size would deep-water facilities .along the just about anywhere outside of attraciiYP ^ . 

vocal, ecological lobby which make them suitable for distribu- intervening coastline, has made Sardinia. On both islands there m..* hnt i me Taslt0 ^ f 
has vowed to fight the nuclear lion wherever needed, according this part of eastern Sicily one is a crying need for developing ™ J"® 11 *®) 1 ® 

energy programme all the way. to demand.” of the main oil refinery ana the agricultural base (Sardin- ^ ose on ^ SiSaas aS' 

Sardinians.. . ; 

r s » ^ Yet if they represent tl ' 

A good place to mm 

political terms. ‘ On the 

^ ^ ^ tiary, there is a saying in . 

i j j that “what Sicily decides i 

O I/' D • tYl DI T the country will folio--; 

lllclJvC lllUllCy ^ 

■ between the ' long-. 

Christian Democrats an ■ 

ITALIANS ON the whole are yet got off the ground in any ponent of the risk capital service for the public, on the Communists toad surfaced' " 
good at saving money, better formal . sense, although of market, has been described to other hand, is anything but high, regional admhustratioz 
on average than the British or course the principle is not new this correspondent as “no more and the sbould-be simple task paj ermo before the conce 
the Americans and. on a per in individual cases, more parti- than a bucket shop,” and pri- of cashing a personal cheque t^en hold in Rome, -er 
capita basis, the country is high cuJariy with many of the vately most brokers would requires three different trans- Sardinians, too,' initiated' 
up in tbe European savings smaller banks in the industrial probably agree. There, is no actions — of course by three moves in ’ the same dii - 
league table. Unfortunately, in north of the country. shortage of proposals, to re- . different officials. although without quite':: 

the context of capital formation, There has also been recently organise and revive the -stock; proportionately, most foreign ing them, no doubt a ref- :• 
most Italian companies and. interesting decision by a exchange (even the Co mmun ist ■ banks operating in Italy do even of' the caution for whi( lL 
even more so, the State itself group of banks to consolidate l >ar t3 r has its own), and the better. They are not really islands’ people arg notch - . 
are very good at spending it. t b e debts of the vast SGI con- semi te commission quoted interested in personal business. But then perhaps Sard.. 

Industry’s self -financing has s tmction and property group above, after its examination have a very compact staffing particular has some:-- 
been negative for years, and /amnno ite mnro r>eii>hntpii which included visits to both ci-mr-tnn^ nriH fund their arrivi- • i_i ...iii.u 4. ; . . 


Critics of the nuclear, pro- 
gramme speak of the enormous 
expense that the programme 
will entail in order to prodace a 
relatively small quantity of 
energy in proportion to Italy’s 
need. The anti-nuclear lobby 
also feels that the rapid develop- 
ment of alternative sources of 
energy is being hindered by the 
preoccupation with the “ nuclear 
option ” that has been given 
priority. 

“ It’s criminal not to invest in 
the sun,” said Professor Gianni 
Mattioli, in a recent interview in 
which be strongly restated his 
advocacy of the development of 
non-conventional sources of 
energy. Professor Mattioli, who' 
teaches nuclear physics at Rome 
University and terms himself a 
“convert” from a pro-nnclear 
policy he held some years ago, 
says that the technological 
means to exploit solar energy, 
for example, could be developed 
in as little as three years. 

The output of each unit would 
be small — only about ten mega- 
watts per unit But with 100 of 
them, the same 1,000 megawatts 
would be produced as from one 
of the planned nuclear power 
stations, and. Professor Mattioli 
adds, “their small size would 
make them suitable for distribu- 
tion wherever needed, according 
to demand.” 


Other critics of the nuclear 
programme speak of the 
political implications of the 
allegiance the 'foreign countries 
—notably the U.S.— that would 
presumably be required if a 
resource-poor country such as 
Italy is to be assured of constant 
supplies of ■uranium. And the 
Italian Government itself, in its 
programme, has given only a' 
vague indication of how it would 
handle one of the biggest con- 
cerns — storage, of radioactive 
wastes. 


Groups 


a On both islands, physical in- 
frastructure is weak, 'and in- 
deed this is one reason why 
only the major national indus- 
trial-groups could afford- to set 
up projects there, since new 
industrial units often toad 
to be self-contained— and large 
enough, both in their concept 
and their backing, to provide 
most of their own essential an- 
cillary services, including water, 
drainage, roads and such like. 
The concentration of industrial 
complexes in the -. Augusta/. 
Siracusa area, .coupled with the 
deep-water facilities .'along the 
intervening coastline, has made 
this part of eastern Sicily one 
of the main oil refinery and 


petrochemicals concentrations 
in Western Europe. In Sardinia, 
near the capital, Cagliari, 
Montedison has reorganised the 
old lead and zinc mines, and 
nearby .at Sulcis-Iglesiente there 
is a large, if now under-utilised, 
alumina plant to treat imported 
bauxite. With the United States, 
Sicily is still the only other pro- 
ducer in real quantity of sul- 
phur. today as always a vital 
commodity. 

But all this development — on 
both islands — has, in a real 
sense, been imported, with pre- 
cious little -involvement by the 
natives. This, generally, is also 
true even in the developing 
tertiary sector, and the rela- 
tively boom tourist conditions 
of recent ' years have again 
been exploited by mainlanders, 
or Swiss, German, Belgian and 
British entrepreneurs who have 
built hotels and associated faci- 
lities. 

. What- of course, has been 
lacking is money, initiative and 
industrial know-how, especially 
perhaps on Sardinia, where the 
people axe generally introverted 
in most senses of the word,- yet 
they reject advice and guidance 
from “abroad,”, which means 
just about anywhere outside of 
Sardinia. On both islands there 
is a crying need for developing 
the agricultural base (Sardin- 


A good place to 
make money” 


been negative for years, and ( among its more celebrated ' vftl ch included visits to ootn structure and fund their activi- material on which to ::- 
this is only partly due to a investments was the Watergate London and Pans, has made a ties— mainly, but not exclu- Antonio Gramsci, who f<": _ 
squ ®i e ^i- n maxguis. The com piex Washington. DC) senes of legislative proposals tq sively, on behalf of foreign com- tile Italian Communist' 
availability of a wide range of once con trolIed by the Vatican 1116 Government panies here — through the local was himself a Sardinia . 

special credit facilities com- dnd j ater b y gig. Michele Tbe proposals include an end money market where, again, a go t00 is the party’s t* 

bined with. Md indeed some- gindona, whose financial empire to trading in blocks of shares generous spread virtually Secretary-General Sig. 

times linked dir ectly to political co i] apS€d eveT) more quickly outside, tbe market (it is esti- guarantees them a healthy Berlinguer who was bt ‘- 

pressures for investments which fl,an it was established. mated that as of now only about ' balance-sheet Said one of them: mjnpf middle class ■ pare 

3J ^ave SoSr^Tndu^ But the banks’ decision in the 20 per cent of business is tjjrn* “ Whatever else you may say not far from t*e . 

Siai poti<* wSS “ 1 too SGI case is no great precedent “ted through the ofecial about Italy, it is a good place of hi s cousin, Sig. Fra : 
SquJtiy is undated to anyway, since they really did market) and with equal rights to make money. ’ Indeed, and Cossi ^ present q,.; 

wndition^ now or In have tittle choice but' to go shareholders; more it u only the tight controls of Democrat Minister of t'.J 

the immediate Sure. Public along with a reconstruction an .^ authority for the Bank of Italy which prevent terior. It is a kind of 

ad^^ktion W been hi formula which gives them a CONSOB, the stock ^change even more of the foreign banks mafijli but the. more re 
deficit for seven years. The' fighting chance of getting some- regulator} agency regulations beingdirecUy represented here no torious thing still 1 - 

SwSrs — - - 

Sirs DJ.C. Christine: 

deficit which, in practice, is great deal of behind-the-scenes ^ ^ ntroIs agamst inMder 

alwavs exceeded anyway. political pressure in this inst- . ' 

I “Consequently” to quote a ance, not least to bring about ^ BANK ,NC0RP0RATED ^1 ■ 

‘recently-concluded investigation some new activity in the depres- UVCrClUG UNDER PUBLIC LAW )) 

by the Senate’s Finance and sed construction sector.. • • -77 ' ■ ' Hv* 

, Treasury Commission into the The banks maybe a lot more V?®*? ^ e ” 3C )"’ Capital Funds and reseno 


TECHNICAL ASSISTANCE 

Industrial entrepreneurs can benefit from the technical assistance given by the Cassa 
per 31 Mezzogiorno through IASM (Institute for the Assistance in the Development of 
Southern Italy). 

In the framework of this assistance may be obtained information on the markets and on 
technical-economic aspects of various production sectors as well as on possible locations; 
collaboration In the layout and examination of technical projects and economic and 
financial planning; collaboration as regards the preparation of the documents that should 
accompany the applications for cash grants. Moreover, there are 48 Consortiums in 
Southern Italy managing ITS “industrial centres" which carry out the infrastructures 
and services required for a rational location of the new enterprises. 

These Consortiums, too, can supply (be it direct or through IASM) information on the 
areas of their competence concerning: availability, characteristics and the cost of plots, 
the state of the area, facilities, labour availability. 

The Cassa per il Mezzogiorno Head Office is in Rome, 

Piazza Kennedy 20, telephone 59911. 


Treasury Commission into the The banks may be a lot more * 

functioning of the Italian stock selective in future, and tbe ™°^ d S 

exchanges. “while family carli/Baffi variations on a I° p n * “ 

savings have doubled during theme have not been greeted Gowninem, throu Ji the so- 
the last decade, public and W jth any great enthusiasm g*! 1 ®! thin 

industrial deficits have, respec- within the banking system. Far 

tively, increased three and fron1 a nd there have been finance ? now in 

fourfold.” And the deficits in private mutterings that part, at of Treaswr). bad its 

some individual indnstrial cases ] eas t 0 f the rationale for the ° wn us ^ ful p f 1 ? P c Sals ; 
are often enormous: Montedi- establishment in the 1930s of barmomsing the fiscal treataent 
son, the troubled chemicals and what is now the gigantic IRI various forms of investment 
fibres group, last month industrial holding company was m 

reported 1977 operating losses t0 re j e ase the banks from much maios ; on the °?f is m0 . st 

getting on for British Steel of their then highly question- recent research, that onl> 
proportions, in fact averaging a ble equity, the very weight of abo . ut - per cent of pnxate 
more than £6m. weekly. which threatened to undermine savings goes into shares. The 

■ their own credibility. Do we ° PCf C m 

PrODOSal now, some hankers ask. rhetoric- ^ 

^ ally, want to risk returning to As an investment medium, 

Montedison is, of course, that situation? the stock exchange just does 

only one in a very long list, n- , of c _ DOt not compete, and about half of 

its own notoriety being due as but the fact that much families’ savings go directly 

much to the nature of its . r ^- industry is now hito bank deposits, a two-thirds 
peculiar state private sector « a “ 0 , ^ increase oyer the last decade, 
mix, as to its actual losses, and . (notionallv short term) The questionable, if not quite 

^US,rin neCd debt which i / threatening to justified, reputation of the stock 

restructuring of its capital ^ k - L It ^ Q lon g er a matter exchange apart, the attraction 

b^e. There are all too rnany of mak ing capital repayments, of double digit interest rates 
others and, having surveyed but often e of meet ing interest with the banks and on Govern- 

S»i commitments, and in ^me cases ment paper is obvious against 

trial scene. Dr. Guido Carh, the intere t is ^| ns ro iied over, an average market yield of 4 to 
former Governor of the Bank comp0UTld i ng , in both senses 5 per cent. Needless to say, 
^ al3 ^ a ? d current president Qf tb W ord) the nightmare of the prospect of capital gains 
of Confindustna, the national corporate treasurers - who, does not count for much, given 
employer organisation, came up corporate ™“^ rs eitrem ^ that bourse index i« t year 

SSfte%^LTo a ie P r <?ed1t do not know clearly by hit a 23-year low. 

institutions should trade off nud-month how that month s The banks, meanwhile, using 
some of industry’s heavy debts wages btilw; to be met. What- a very attractive spread be- 
for new equity Dr. Carli’s sue- ever the criticism of the earn/ t ween deposit and lending rates, 
cessor at the Central Bank, Dr. Baffi plans, the actual problem tum j n (with one or two notable 

Paolo Ttaffi has, in a plan of 15 mo dear - exceptions) very handsome 

his own, watered down some ot Ordinarily, of course, the profit figures, even on the basis 
the original Carli concept not stock exchange should provide of public disclosure which con- 

least with an eye to ensuring at least a part of the answer, ceals a fair amount and despite 

that the credibility of tbe bank- but in any serious sense of the being generally overstaffed and 
ing system itself does not suffer term, there really is no stock being obliged to pay, by Italian 
as a consequence. . exchange in Italy. The Milan standards, a high level of 

The operation has not as Bourse, the most important com- average salary. The counter 


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Mountains, lake^folWor^ sites, a vast network of roadsand I — " — ' — 

substantial pdroldiscomits and railways. 1 rieasesend me afreet 

museum passes, shoppmgata very Italy. Where could youftnda j onthetdlowir 1 e areas: 

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Address. 


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and pocket tourist villages .and cawp Office, 


j Poti to: Italian StateTotgV 




13-17 MAY 1878 

Open daily: 




H1A3 923U. j 


930 am.- to 730 pm. 


Torino Espcsixionr 

Cor»R92»p ,,S 
TURIN — . IT ALT 


•l 




^Wes Tuesday April 4 1978 


o.. . « ^ 


ITALY XI 






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2?S!f < ?22!S5»? l i < !P <in ’ a ®^-^ ,e ca ^ e ^ a reflective pause lions, Far from it.. It has dition for their direct support 

dfi ** ance of- waftteg Tor what the future has sought to guarantee among of the new Christian Democrat 
A f^* to Store. other things the right of Government of Sig. Giulio 

Marcel Lefebvre the ' But while the' , future is by Catholic instruction in schools Andreotti that legislation should 

ancan. UT- so to speak appar- no mekna certain, especially in and despite divorco legislation, be altered to prevent the radical 
^uy swaying to -the-Left. -All a-country iikeMy now passing it upholds the belief that party-inspired referendum on 
we -visible signs are seemingly through a prpmg^d.if- gradual couples must be married by a abortion this year from taking 
from the' abolition transforraatSob^ahd despite the priest and cannot divorce. place. 

« wow Latin Mass, there are mood of "apparent .suspended Th« v-hm in w wn Veiled in the customary 
°* course- the increasing occa- animation prevailing over the irnov™ makinB easv eonces- «>urtesy, the Vatican answer to 


«« nonetheless been blunt There 
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the Pope .and Sig. Giulio Carlo Vatican fe n^srtfaeless moving 
Aigan,. the art historian, and fohwards^-nOt to the Left, nor ^ i i ^ 

,p)innninistll£arprof Home. The to the Right' but on its own ^5x n +f,. T}m!!?!! n n,!lv, P ?,wh compatibility between Chris- 
Italian Communist Party Secre- long-term course. The current tlanity and Marxism and 

tary _ General* Sig;- ‘Enrico revision of the Concordat, the 'tself unable to compromise between the 

Bertinguer, was seen not so long State-Church pact between Pope ° n 1 ssues as fundamental as the church and the Communist 
ago : chatting at some length Pius XI and Mussolini sealed in r[!™ .f 1 *. 15 on /J . one ex 8|nP le - Party as long as the latter masn- 
duxing a diplomatic reception 1929 is a case in point It is nut .. fien does » 1S usually on tains the article in its statute 
with the Vatican’s; East Euro- only important for Italy but “f ov ^ .terms. The overture to w hich talks about the “ Mantist- 
pean specialist. Cardinal for other predominantly Roman Co mm u n ist countries of Leninist” outlook of all party 
CasaroK, . himself one . of the . Catholic countries like Spain -Eastern Europe is another members. The Italian Corn- 
principal promoters of the re- since it Could set' the general example. It has been summed up munists claim that the article in 
condliation between the Roman pattern of. future- State-Church as a policy of “ political conces- question has now been over- 
CathoUc Church jmd countries - relations.’' . sions for pastoral gains” but taken by another article, insti- 

of the Eastern Bloc. - The spirit behlgt the revision evea here the Pope made it tuted by one of the leading 

Over- the last einht mnnths. the- Concordjtt is in line not quite dear to the Polish leader, “philosophers” of Italian Corn- 

two East EurODean- leaders— oa Jy Wlt & tb* "thinking of the Edward Gierek, last December munism, tbe late Palmiro Togli- 
Mr. Janos • Kadar of Hnnearv Pbliti«d parties but indeed of th&t the Homan. Church could atti, which acknowledges the 
and Mr.- Edward Gierek rf the Vatican itself. When King only co-operate more fully in right of all members to pursue 

Poland— have been received bv * {uan Caries Of Spain visited solving Poland’s problems when their individual beliefs, 

the Pope in the course of fheir Rome Iast p ope the Church was granted the free- 

respective official visits to Italy, said that the Chorch Sought “ no tfom it sought The Pope was CpriiKKfkrl 
not to mention the coutinS Pnvileges. but only sufficient pohte but stern. OL1 UUUCII 

talks between' Anglicans and ^herty^to carxy-_fo>ward its The Vatican maintains a But in the eyes of the Vatican, 

Homan Catholics on the broad evailfieJls if? misaon-'' -In a similar unambiguous approach even if the “ Marxist-Leninist " 
concept of a united Church.' like J.taiy, ymere the ^hen it conies to the Italian reference is scrubbed as the 

Furthermore, the Roman Catho- Ch ^ r ? , L a . defe ^ Communist Party. In this case. Party .apparently intends, there 

lie Church has .found itself In ro !2?i-r fe 2* <m po “ aeal “ d it is more the Italian Com- »s still a further incompatibility 
the front line of opposition to soci * 1 ?“ ****&&^ ut munists who are making the between the Church and the 

apartheid . and ' increasing t>p ^?. _f uppQr [ f ‘ political, or at least ideological, underlying -aim of the Corn- 

gpvemment oppression ih^ ^South^ L 7I! concessions in return for what niu^ts to set up a collective 
Airica.. .S?, ‘ m <*»r]y electoral pbm. The Stat*.. ,omehm« »t«Te d to a, 

- - ^ thelong imtog -Oirisnan Demo- Qverture h8S S !„ Marxist and on other occasions 

i j- ' - - ■ crate, the- sfKiiflcance of the as SodaUst As Cardinal 

MMeadfeg :-Con»r<J*ti^««Ss:«>ormo M .=" 1 ^““^^^^Ba.eUi. the Archbishop of 

■ ‘ - Zd so many- words, the Qiurch p artv lead-r has never nnder- Florence, has remarked: “The 

But IttBjdlj^rihlfr s^ and sees its in its total StiSated Se^uenw “the duty to cojaborate for the 

the Church, knows tiiis - better and unam^i^obs autonomy- Vatican and his mrtv has enne common 60° d 13 one tlun S'- to 
than most, they often -cotivey a‘ even from agoW ally like the to ^^rable I So „ J +n <» Ua borate for installing a 
deeply misleading Impre-ahm. Christian BScrat -Party. irSThefWh S?hS totalitarian socialist State is 

The rebel Erench Archbidiop While: still. qS^ly maintaining^ tSS another.” This is hardly the 

else knows this very well afr-his jn ''toady * ’TSSp of “speriS % stuff that heralds a radical 

crusade, based on the biggest ; relationship'* wi^i the Party— SS®, change in outlook. At the end 
misconception ofaB coacerwiigjt is no d^Baciafeiice that the ^ &ca n^daiming th^lns parly 0 f the day, Sig. Berlinguer may 
the abdlition bf the -Latin-; Mass^ Pope, spoke frpm'his.'balcony of adv^ted oomplete freedom of welJ advocate that “the State 
cleaxly Shows. Far^ronr moving his . ^'old ^ ; Aldo Moro beliefs » and lde “ cannot give up carrying out its 

to the Left, the past 14 yearsr shortly after the kidnapping of V s own . members as proper functions,” but the 

of the Papach of Paul ; VI i h^; the-CSrlstian Democrat- Party be fi f s a “mecratic and puralist Vatican will reply quite simply 
sought to consolidate and> rg-: ’.'president— : C3uircb sees the, pa 2 y ' . 1185 further been that neither can the Church give 

d«n»mrtan ^ .-ther^- ienor^^ affilia- po^ceably ooheemed to avoid up its mission. There may be 

changes advocated; but hot all- tions bn a purely national scale, anyvpou^ontahon not only with variations and transformations 
introduced, under the Innova^ Its' sfrehgth^aerives front what '® e ^nstten Democrat Party in the years to come, but this 
tive and" remarkable rule - of it. terms ’jfe “ universal evan- ^geciaily with the Church mission and the ultimate vision 
Pope John; .And'-itftdy. Wtth geHsiiig^rtile. This, however; o^®r ™c issue of abortion. appears, as it has done so for 

the Pope;- now SO, and interests- is not. in say that the Vatican. Indeed the Communists, while centuries, to be here to stay, 

ingly frail in health, the Vati- has automatically taken a softer theoretically in favour of more 
can; is undergoing Trim could line on the Concordat negotia- liberal laws, made it a precon- rJS. 


; ; ; t -je fct- 

Christine! 

?;n* MCVCWS 

C-r- :.- = rs*s*Brt 

;?:-so 

Head Office in W 

. of the General 
in Home 

hes in Italy 










fices a 


broad: 


I N:' f fr ' 


m m c A 1 

garia : * w ” 


jinpanies 


\3 



<>c ,5 


TBE STCTDE^T scene in Italy . The destruction of the system needs, say, 400 vets. Without 
‘ presents' 1 two - novelties; The is Just what the new brand of this kind of steering mechanism, 
battlefield has shifted largely teenage radicals axe after, you have to fall back on the 

from the universities, to the -literally. _Says Cinzia, one of market rule of supply and de- 

high schools : and tetiutical col- the leaders of the extremist mand, with the result that it’s 
leges. - The - good-natured minority at Cesare Correct!: ; no- longer tons of pears you're 
“L’thmgfnationuu T^w^'lype “Chir campaign aims at the de- sending off to rot, but thousands 
of contest that characterised sfruction of the school as a of people.” 
lost year's. ; student - upheavals separate institution. It ought. As a year ago with .the Univer- 
has turned into ; hmaticjto be an instrument of social^ sities*. the root of 'the problem 
violence. : .sation, not' of bourgeois leara-remains the economic situation, 

But drapite the bold headline lng.” - considerably worse now in terms 

charting the seeming . breakdown ' . Words may not hurt but fire of recession and unemployment, 
of the higher; education system, does — as - in Bologna, where .Measures passed last year to 

rebellion and' violence, though students recently, set fire to a stimulate the employment of 

common - p*rn » g *», : remain ; a -suburban school; ■ in Genoa, those in search of first jobs- have 
fr ing e phenomenon. What the -where high school students set had almost no effect, largely be- 
papers dor not mention are the one of their teacher’s oars cause of economic climate. The 
hundreds, of thousands of stu- ablaze: in Rome, where two ex- result is that over 70 per cent 
dents who do not : .blacklist,, perimental -schools as well as: of the more than IJSm. unem- 
insult, expel, beat' up and. two teachers’ cars have been ployed are under 29. In addl- 
threaten tiie-'-Iiros of- their the targets of arson. ;■ - . . J -'tipn,.'the entire university popu- 

teadhers. The signs are that the ■ latton of 750,000 can be conr 

sileut : student majority is 'D'awinafiaii ' -.sidered as potentially unera- 

coming into its own and that JK.d.JLUJJ<l-gCU : ployed- 

the extremists are becoming .in-- . ■ -. Seen in this perspective, the 

creasingly' isolated! . Even the . Nor over passing grades be- 

“political six* is no longer" a ^he/a At Pa ^f a comes quite academia What is 

rallying point • 'Leftists rampaged through., the ^ difference if there are no 

MUan ^“Cesare Correnti Tech- physics ^ aculty . last “ d jobs either for those passed and 
WhSe tim beat . up. .two, . Commmnst £ ose ^ed? The employment 

indents -beat UD-and threatened .teachers. One of the two, situation outside the high, 
S^throw one of 'the teachers, Aatomo. Dngo, jmd S ch 0 ols and technical institutes 

ns2Z^ro£m o^t erf^ afterwards: “If. we’ve rea(^ a^- goes long way towards 
. refused to this state of affairs, -the' reSin- ^ esplaS the political dlmate 

W out S”' (pSsSdS U«r* the 'state of the nation i^de those seats of learning, 
nnt nf i kca^StenSie^OTa^ and of the uniwreities. -■ * 7 Lacking any form of social 

wmSfffrom^heteaSg Jn Rome Marghenta Ptona- a rationale, apart from acting as a 
Sxff hv^a4. had been going ^ school teacher, was ex- s0r t of waiting room or ante- 
or v^&p?te offing dii peHed M by tier students for he- chamber to unemployment, the 
d^era^One Mrin the students tog “anti-democratic..' In Naples BC hooIs become a fonim for 
nSASw“ * 'totally fictitious- agitators at a technical cotage political debate, and since the 
d^^^bri^Paesano, on sought tc .extort a nax” Irem mood offfiestudente is domin- 
thhdass^roster 'No' one noticed their teachers. . . . . ;antly frustration, it is hardly to 

thrt^^' was todeed- a fiction Says Communist academe be .wondered at that the political 
and he W cot nassed. Luclo Lombardo Radice: '‘The colouring of this debate is radic- 

wmTSm'ut. no technical colleges have bereme ally violent _ 
n^w inventioEL^-lSy of those a cancertftat Is for worse than Nor are there immediate soiu- 
■SSSrSf 'jS Sllton: the. universities. They crate lions in <J.e effing, either m the 
toSvw^among^ ■'tffwort: maese^ who cannot enter -into form o£a- significant pick-ire m 
SS 7 advocates of the^poMtical prodhctive work.' they create the economy or- o£ the sort^of 
-ax”, as atndfinte' tiack in i<06£ ma«s ' CtUtural corruption:” -H« sweeping reformist measures 
St'toe W ian®ast a grain W whit* alone ^uld substantially 

™nds hS^^Sed; “ Sa5- £n :-the radicals’ .battle for u^ alter the situation m the seboois. 

Sriides. “Sdhools . After, 10 

we wanted in : 1968 vi^s a reform dtoui&'t' Just reject people. , discussions, this month Italy s 
of the schboh ' system, not ltsTEfiey sbonld select; while ori^it- 7 l-member National Council on 
destruction. The r^brm didnt ini! . people. ; They . should let. higher Education, grouping 
take place and : things Just > got . students know-that the, maiket ^axmts, tw^rs and;sto.dMte, 
worse Is - lt~su uprising that the can’t take more than 300 mathe- issued a stetwnent tillingfor 
pst imv. joatical researcheis, put that it ** “wbiUs&tum of democratic 


forces” to make tiie schools a 
“central question in their politi- 
cal struggle.” Of practical sug- 
gestions, however, not a hint 

It may in fact be argued that 
anarchy has become an institu- 
tionalised part of the I talian 
higher education system. Law 
faculty students in Bologna are 
so numerous that in theory they 
each have only, half a square 
metre of space at their disposal 
The situation' is worse in some 
faculties in Ztome, but in fact 
there is nqt too. much con- 
gestion because only one out 
of every 100 students actually 
shows lip for classes. 

One technical college teacher 
in Home says: “When I arrive 
for classes there are sometimes 
three or four students there, 
sometimes none at alL I do not 
know where they go or what 
they do.” But hardly less shock- 
ing- than mass absenteeism is 
the fact that if all the students 
did show up the nation’s class- 
rooms would burst at the seams. 


Backlash 


. It is all the more surprising 
therefore that some kind of a 
moderate backlash now appears 
to be taking place 'against the 
excesses of the radicals, who, it 
has been shown, are in a 
minority everywhere (only 50 
out of 1,200 students at Cesare 
Correnti). At a recent assembly 
at the Milan -College, student 
orators repeatedly spoke up 
against ’ universal passes. ' In 
Rome 10,000 moderate’ students 
recently demonstrated against 
-the extremists, while an earlier 
rally by Leftist supporters, of 
“sixes” fizzled out for lack of 
any mass support At Padua 
University . one- faculty was 
occupied by- moderate. Leftist 
students to prevent destructive 
raids by extreme Leftists. 

The -violence seems to be 
dying down but regrettably it’s 
so far about the only thing that 
has.changedl 

Chris Matthews 



27 


INTRODUCING 

AVERY RARE ITALIAN COMPANY 


A growing 
company, part of an 
economic syst em in Italy 1 
that’s growing. 

C.M.C.of Ravenna, general con- 
struction company, is an integral 
part of that imposing association 
of companies that together form 
the Italian cooperative movement. 

This movement has a social 
strength of over 5 million coope- 
rators, accounting for 7% of 
Italy's GNP. 

The cooperative mode of pro- 
duction has proved to be the 
most effective in facing and over- 
coming the difficulties of what is 
now, in Italy, a general crisis. 

The cooperative movement is a 
wealth of human and material 
resources and its objectives are 
not only production oriented, but 
social. 

This is the natural consequence 
.of the cooperative mode of pro- 
duction, which is historically ba- 
sed on the principle of self-mana- 
gement where the workers partici- 
pate directly in the running of 
the company. 

C.M.C. founded in 1901, is a 
member of the National League 
of Cooperatives. The League in 
1977 alone, had an investment 
programme of US $ 1J2 Billion. 

This is in net contrast to the 
private construction sector which 
is in a permanent crisis. 


A company whose 
economic choices are 
also social ones. 

One of the primary objectives 
gf CJMC. is to maintain and in- 
crease occupational levels. 

This is one of the fundamental 
principles of the cooperative mo- 
vement from its origins. 


From 2776 workers and em- 
ployees in 1976, CJvLC. increased, 
to 5150% the end of 2977,20% 
more jobs. 

While private industry mani-. 
fests the exact opposite tendency. 


A company that 
prodaces a wry rare 
product New johs. 

CM.C. is basically a general 
construction company, but has 
developed diversifying its . acti- 
vities. It uses ever increasing hu- 
man and technological, resources 
in the continual industrialization, 
of construction techniques. Not- 
forgetting its expanriphinto com- 
plementary sectors. 

The CJVLC. group has the Mo- 
wing structures: 

CLM.C. - CE.PRJiXj.IN. (Cese- 
na, Italy), building prefabrication, 
precast industrial plant and met- 
al carpentry. 

PREFABBRICAZIONE (Rimi- 
ni, Italy) building prefabrication 
for schools and housing. 

CJVLC. - MONOCERAM (Faen- 
za, Italy), ceramic tile factory. 

FINER - C.M.C 's own finan- 
cing company, through which the 




Ccx^BitivaMuratafi& Cementisli 

di Ravenna 

Via Trieste 76, 48100 Ravenna 
TeL (0544] 421209 / 421281 
Telex 55262 

Roma office: - 

■ Via A. Casalpino 1/A, 00161 Roma 
TeL (06) 851522 -866593 

Telex 81390 •- 

Constructing together. 


group participates ■ in SECIT, 
ITALFORN I and DAM PROGET 
TI (companies' operating in the 
ecorogicalandengineeringsectors). 
•SERS (tug boats), ZANNONII 
(metalworks)-. ' 

CM.C*s group turnaverin 1977 - 
was about US. $ 60 . millions, its 
growth' programme foresees an 
even heavier investment increase. 
According to the medium term- 
development plan, turnover will 
. triplicate in real terms in the next 
four years. It’s on this solid basis 
that C.M.C. intends to widen its 
.. collaboration- with ■all the national 

* institutions, small; medium and 
large industries, and the public 
sector. 


Anltalian company 
that exports thievery 
fiercest Italian prodtitf. 
lechnology. 

C.M.C's long experience in the 
construction field- has made it 
possible to offer its acquired, 
technical know-how £0 the deve- 
loping nations of Africa and the 
MddleEast. 

With big construction projects* 
civil engineering plants, CJVLC. 
establishes new technical coope- 
rative relations among equals. 

Ready functioning agrobusiness; 
complexes in Algeria; civil engin- 
eering plants in East Africa; 
construction projects in the Gulf.' 
- Ah realized either by CM.C. 
alone or together with, other 
cooperatives, private and public 
companies. 

CJVLC. intends to work with all 
the developing countries on the 
basis of mutual cooperation. 

Thus creating a foundation for 
the growth of autonomous natio- 
nal structures, necessary for an 
independent development of these 
countries. 


«cf 

€ 

a> 

tc 


23 ships,20 parts of call, 21 sailings 
a day - Tirrenia carries 
1,700,000 ems of freight a year. 

That’s service, that is ! 


And it is a comprehensive 
service, extending throughout - 
the Mediterranean. Indeed, _ 

Tirrenia does not merely ship 
your goods from one port to * 
another, it is dedicated to providing 
the most efficient and reliable 
service available today. 

For example, take our 23 ships 
4 all-freight and 19 passenger/freighl 
vessels, all of them Roll 
on/RoIl offi 

The ships are fitted 
out for any type of freight 
and vehicle, from extra-large 
or extra-heavy loads to 
hazardous substances, from refrigerated 
trucks to containers, from road tankers 
to new cars, from semi-trailers to 
“standard unitf* freight trolleys. 



This service is called our 
“door-to-door* service. 


'■ With its vessels, its frequent 
connections and the network of ports 
of call, Tirrenia has a good 
deal to offer you and 
your freight 

Delivery times are kept 
down to the minimum, 
punctuality and efficiency 
are an integral part of the 
service. Do you know any 
other shipping line which can 
offer you allthis? 


. Cars clock up less mileage, ; 
trailers travel without tractors, 
individual packages and small 
consignments can be grouped, 
on trolleys for rational loading at 
minimal cost 

Tirrenia Line Roll on/Roll off femes can . 
be used to ship your goods to any Mediterranean 
port, for the Line pools its services with other 
shipping companies (including its sister line, 
the Adriatica); 

Tirrenia Line has always accepted your 
goods at the port of departure and has delivered 
Siem to the port of arrival; now, however; 
it arranges for consignments to be picked- up 
directly from .their place of production and ^ 
‘forwards them right through to their final, destination. 

This means that goods can be shipped . „ 
overland, by sea and then overland under a single 
operation, with a single through bill-of lading. 



turefim mtge 

lontta - h=Ln C-mtm I SK-ppirg L’d. - IES. 

, 7*1 - Cabin r-a J'Jp -T p'^u 6£&6l6 E5 Snip ■ 

famifurt/Mo'n ■ Sod C-cuW i Co. - hVwiwtebCft, ... 
TbL flVW - Cobto - ?aSw 4U3a G«m . - • 

- Peru • Aqe'io* Mari'i'w SA. • H, Sjb Tnwcbrt 

T«L :&H-Vi0 - Cable Atjcmsrp* • lew Agemoigi 

IMaport • Tmeoia Heisds.-anere • Sfrig rane. 2 

X*L c6C13m - CaUa Houma* - Te^ 7I0S3 Hade. 


28 


ITALY XU 


-- -Financial TnaesTuesday April 4 


T ourists still flock in 
record numbers 


TOURIST ITALY has many 
faces: Rome, the Eternal City; 
Florence of the Medicis and of 
Macbiavelli: Como of the lakes; 
and there are all those estab- 
lished (and in summer over- 
crowded) watering holes for the 
white-skinned invaders from the 
north seeking the sun — Rimini 
and Cattolica, Sorrento and 
Capri; and Milan of the La 
Seal a. worth a special mention 
in this year of the Opera 
House's bicentenary. 

But there are other faces, too, 
many as yet virtually unknown 
to foreigners — and some so 
expensive that knowledge is 
worthless unless accompanied 
by a very fat cheque book. Take 


one particular contrast, say. 
between the largely unexplored 
and unspoilt sandy beaches 
around the heel of Italy, and 
along its instep, and again in 
neighbouring Calabria, and 
compare the scene — and the 
prices — with the Aga-Khan’s 
man-made pleasure and leisure 
centre un the Costa Smeralda in 
north-eastern Sardinia. 

The motorways have opened 
up Italy, and particularly the 
South, but all too often the 
tourists stop at Naples and the 
Sorrento peninsula, to rest up 
and take the sea and the sun in 
the over-commercialised resorts 
pf Positano, Capri (with its 
Blue Grotto and singing boat- 


men — all at a price) and Amalfi. 
Further south, and the roads are. 
surprisingly good, empty sand 
beaches and colourful inlets 
await the more adventurous 
travellers. 

Mediterranean civilisation 
opens up along the Calabrian 
coastline, with Greek and 
Roman ruins, baroque 
cathedrals and Byzantine 
churches among the peach 
blossom and oranges. It is all 
still surprisingly free of people 
and of the commercialism which 
advances ahead of any new 
touristic bonanza — not too much 
real luxury, but a real tourist 
paradise, sometimes with only 
the fishermen for company. 


Nearby, across the Straits of 
Messina, there is Sicily, and 
further north Sardinia and the 
artificial luxury of the now 
celebrated Costa Smeralda. 
This is a playground designed 
and built for the rich, a vast 
tourist complex carved out of 
nothing but rock, which is just 
about all that was there wben 
a long slice of the picturesque 
coastline was acquired some 20 
years ago by* the Aga Khan. 
Land there, say q site for a 
holiday bungalow, changed 
hands then for as little as L40 
(still a mere 3p in to-day’s 
money) per square metre. 
To-day, if a site can be got — 
and it is a mighty big “if” — 



A secluded bay on the Costa Smeralda. 


the cost would be in the region 
of L50.000 <£30). ■■ 

The Costa - Smeralda is, 
depending on one's point of 
view and where you stand in 
the tourist exploitation, game, 
either a rip-off or an immensely 
shrewd commercial proposition. 
It has some of the bluest waters 
in the blue Mediterranean, a 
concentration of mostly lavish 
hotels and associated facili- 
ties centred on the man- 
made village of Porto Cervo 
below which lies one of the 
largest and best equipped 
yachting marinas in all of 
Europe— and some of the worlds 
largest yachts. 

The scenery is almost breatb- 
takingly beautiful — and the 
prices will take your breath 
away too. The Aga Khan's con- 
sortium has in fact only a direct 
stake in three of the region’s 
major hotels, but it has ■ its 
commercial fingers in just about 
everything else. You become 
associated with the Consorzio 
Costa Smeralda, or you don’t 
become associated noth the area 
at all, whether you want to 
build a new hotel, open a hew 
restaurant or provide some 
other support facilities for the 
high-spending tourists. 

At all stages there is a finan- 
cial cut for the Consorzio or, in 
the words of one disappointed 
potential investor from Turin 
who wanted to open a restau- 
rant: “ You are ostracised. To 
survive, whatever your talents, 
you have to locate in the Porto 
Cervo zone, and to do so you 
must pay.” 

Yet the Aga Khan has done 
economic wonders for this part 
of Sardinia, and right now a 
massive new investment is 
under way to expand the Costa 
Smeralda complex and provide 
new roads, water and sewerage, 
new electrical and telephone 
circuits, all at a cost of some 
£3m. All . the work is to be 
finished by mid-July when the 
high season gets under way. It 
probably will be too, for this 
tourist complex is run with 
military-style precision, and by 
'some very able accountants. 

But then tourism throughout 



Italy is big business today. Last 
year produced, yet another 
revenue record, an estimated 
L3^00bru, (some £2bn.), accord- 
ing to Sig. fifichele Pandolfo, 
president of the national 
tourism organisation. Put an- 
other way, this figure (from ah 
estimated 40m. visitors to a 
country of about 55m. - in- 
habitants) covers half of Italy’s 
total oil imports and is calcu- 
lated to be one-quarter of total 
tourist-, revenue in the nine 
EEC countries. . 

Gross tourist revenue’ in 1977. 
before allowing for an esti- 
mated L8O0bn. (£500m.) spent 
by Italians holidaying’ abroad, 
was just about double that of 
the previous year, and exchange 
rate adjustments - are only a 
small part of the story. 

The fact is that foreign 
tourists are flocking to Italy as 
never before, and the season 13 
actually getting longer, starting 
now before Easter and going’ on 


into late October and even early 
November. And of . course 
tourist Italy has a useful and 
growing second season, the 
season of the winter sports 
enthusiasts in the northern- ski 
resorts where, despite recent 
.price rises, costs remain more 
than competitive with most of 
the more established skiing 
centres in France, Switzerland 
and even Austria. a • 

Finally, how does 'that other 
face of Italy affect tourism, the 
lace of crime and street 
violence, terrorism and the 
associated stuff of so many 
recent newspaper headlines— In 
particular of course the kidnap- 
ping of the former . Prime 
Minister, Sig. Aldo Mofo, and 
the murder of his five body- 
guards The answer, from the 
figures at least, is not too much, 
although there was a noticeable 
drop in the number of ’Easter 
visitors to Rome this. year. -the 
extended - festive week-end 


coming only ten days afte 
Moro kidnapping. 

There are too the. note 
(in the strict sense of notoi 
incidents of old ladies’ bahi 
being snatched by Italian 
on scooters. It does of c 
happen, but its freqii 
relative to some 40 ul vh 
is hardly extraordinary. Jj. 
the centres .-of the: prii_. 
cities, and most node 
perhaps Milan, are pretty 
devoid of people late at ; 
but so also are parts of- 
York and London. The 4 
over the years is bemoan 
many Italians- — and right. - 
but petty crime' is regre - 
nowadays part and parcel c. „ 
urban scene, and not just 
in- Italy. Hie more sinister - 
and it Is clearly on the inc 
has not thus far had a.'~ 
influence on tourist nui ’ 
although it could in time.;;. 

D 



Inmeccanica 



36 companies 51 works 85,750 employees 
1977: orders received $3,000,000,000 invoiced value $2,50(^000,000 


MAIN STOCKHOLDINGS 


thermo electromechanical and nuclear 

AMN ■ ANSALDO ■ BREDA Termomeccanica ■ CESEN Centro Studi Energia ■ G1E ■ ITALTRAFO ■ NIRA Nucleare 
Italiana Reattori Avanzati ■ SAIGE ■ S1GEN B SIMEP B SOPREN ■ TERMOSUD 

automotive 

ALFA ROMEO ■ ALFASUD ■ SPICA B VM Stabilimenti Meccanici 


aerospace and electronics 

AERITALIA fl ALFA ROMEO Aviation Division B CNA Compagnia Nazionale Aerospaziale B ELSAG B SELENIA 

plant-engineering 

AERIMPIANTi B ITALIMPIANTI B TERMOMECCANICA Italiana ' 


diversified products 


CM I B COGIS B FAG Italiana B IOR B ITALTRACTOR fl MERISINTER B OMG m 
SAFOG B SAIMP B SAN GIORGIO Elettrodomestici B SAN GIORGIO PRA’ B f 
WAGI International 1 


ROME (ITALY) 
Viale Pilsudski 92 
tel- 06.87771 
telex 63971 Fjnmec 



NEW YORK (USA) 

Park Avenue 460 
tel. 355.0505 

telex 710 581 5230 Finmec NY 


MOSCOW (URSS) 
Kursovoy Pereuiok 1/1 
tel. 202.31.11 
telex 7833 Finsid SU 



EXPORTS TURNOVER 


$ 1,100,000,000 


$ 800,000,000 


$ 570,000,000 


$ 400,000,000 
$ 300,000,000 

1973 

















29 



4 1978 



'• '*£**>**•- «| : ••• v .- - -w " ‘ 

.SiafVvvV*-.’ •; ’ ' ■ 


SOCIETY TO-DAY 







,«S_ry(K 


'.; ,V, 


20* 



_*re ... more 
jK ja no doubt 
“ ' effects of 1 
that 

to. . the • 
who 1 are 



\ 



taxation 
a particu- 
Ihe first 
beard 



*&£ £* T* ** of 

jnterx he^ fwill impose high clear-cut. 

about the-* 

^ he cares moxeripmokuifc of 
ahouttheir Totes he wfll not SoSm 

Fw^e arguments in^ur of unf ortanajp’ Hre 

“^? crae ** tawtten- .afflicted by it the difficulty 
SSL?? 1 only the here, election*®* jitters apart 
shrng af^poUttotin’s shonider is one of piindfile. For if 
^ .“..^ ectl0Q year can oqfc.aiyoae advoea*' ' 
weigh. them. ..... .„_■ /• inorfertod 

■ These arguments do not apply harmful 

to every aspect, of Rreventtve cryof protest ___ , 

-medicine. An. honest -Minister wJfi:inCTi^fly.he;4|Mt il is “a 
responsible ~ for -health might gross-interference .with personal 
say; ** thoser who wotdd dis- ireadnnu* . 
courage the. eating of butter .The argument fs heard again 
seem to disagree with those who and again — overa&wridati on of 
■would banish sugar,* and supplies, $$ srat belts, or 

damage to his conscience would br^atKafyj^r .tests., Yet it rarely 
not.be beyond repair, could-gtaute up, whatever. the specific #5ft _ 
point; to the 742 pages* of 'eyf5^nce. • ••■/ . . ■ UQXLm 

deuce published: by the dxpendi" ' _L‘ J •■:''.&■■■'< 
ture.committee of ’ ttie House rot -- 1 Npqf horn 
Commons a. ' year ago 1 ' and . kA,a J 
set ■ one .expert witness. On sept belts, for example, it 
against another. . - T may . - be" ;ai^-^ringemem of * 

. A reasonable policy based *° tell ^^^Me.that he 1 defeate t 

this kind of honest e^tra Tisk lUj^e ber own life TOe proponents of preventive 

might , be to promise more in * motor carihiit what about medicine by taxation are trying 
affi§a2 fact papers to baqfc up^J^onsibJ^ ^ the pas- to establlrfffas a general pnn- 
fuiSr SmS .Again* a . severely dple that where . tte cost of 

education. Thifisthe policy inJwed person isfreated “free* treatment falls on the “national 
promised by list DeSiiSei? T 9 * the taxpayer's cost— P"™* there- is often a fiscal 


for tax as preventive 




REVENUE FROM SMOKING 
Estimated effect on Government Budget of a 40 per cent, 
reduction in c i garet te smoking fai 1976 (at 197273 prices 
' and rates) phased in during 1976-80 


£ million per annum 
197640 1986-90 1996-2000 


Savings: 

Hospital inpatient stay (not) 
General-practitioner 
consultations (net) 

Sickness benefit (net) 
Widows* benefit 
Costs: 

Retirement pensions 
•" Health education 
Net effect (excluding tax revenue) 
■ Extra tax revenue 


■ 3 

4 

4 

1 

0 

*- 1 

24 

48 

49 

3 

18 

27 

— 4 

—33 

-60 

-10 

—10 

-10 

17 

29 

11 

85 

85 

85 


DENIS HEALEY 
Chancellor's choice 


Swire**: DMSJ. Social Security SuxliXIa, 1973; Health ami Social Security 
StatWct. 1973; Soda) Security Pemfom fittf, 1975. 

The Leo cet 



DAVID ENNALS 
Health Ministry statement 


This levy should, of 
course, be high enough 10 
finance the NHS bills. We must 
wait and see whether Treasury 
huffing apxf puffing about 
“hypothecation,” or oil industry 


WhitePaper “l^vention^nd Aether or notthe degree of the higher tax 

Health" (Cmnd. 70471 a docu- injury .wqpld. litve been less if and that this over-ndes any 
ment ae^ttvirtmh.d won. a “"■; % 

of Health and social; . . striking recent illustrations of 


vthe Government’s 


first this principle was published in 


rtin? ; efT 

r«> aidnaapinn ■ * 

arc C the _ 
tne sty - * n ' * ■* 

'&■***•. oMlsd; s - 
^^hedbylu^ 

**=■ ** :u £ 

iiar&y vstraoniir.: 
fertre? \;i ?ja 
--d m £ 
!!U ^ : Mi:a n. aru 
eia -,r r-.-opie Ui e' l 
w-j ire pan,; 
’► Loc&e. Tat 
r yetrs i* n=snor 

^*5 »7o .>!>• 

yvf.y ^ 

«aa>i pir; 

3-1 S- 4 fie. 2 ‘.\ JF 
■ i a iy ?r..: .t. 'c-? ?: Tisr 

V2 (VfrJE 
. ’. .".'is .nr ’jJc ii 

aen-. :xira" 52. 
v._!i alo- 


has gone so far 'as to accept 

“ that a lrigh -pi^ra^.of te-a^^ a £• Lancet last ' September, 

m the _diet may represent a Jevy to when economists,, A. B. 

hazard to health." ■ ’ Znxoa*,&K cwt tojtfte National Atkinson and Joy L. Townsend, 

ft . hag not however.' b^n-Heaftih SergtojKfof treating drew up a profit-and-loss account 
over-courageous: it .avoids JSe .was based on an. attempt to effect 

risk of getting caught a defeated by the jnsarance com- a 40 per cent reduction In' 
margarine-butter crossfire by parries a year a^o: The new cigarette smoking, 
declining to accept that ^a'yroposat, put fo r^rd l ast week Results are shown in the 
reduction of fat Intakes and aw Lord PifefflpftijW: Com- table: it wflT'Be'seen that pro- 
switch from: saturated to poTy» missioii : bn <5vfl ^L ptbfl fty and vision is made for the extra cost 
tmsaturated fats are " tt> he Oraspesasattois. S S)zi^' Personal 0 f pensions that would result 
regarded as simple alt&rafe- Btiury. iai^hat a . higher tax on from enabling a great many 
tives.” - Anct ^ course. toere is. wonld.meet tjm principle people to live longer. Their 
no question of taxing butter to Shat .those- the risk plan is a total package includ- 
subsidise margarine— yet :• - T -iStmaW fiaahjc&j&e eompensa- ing further restrictions on 

' • AAoStf -‘~ fLn+.'t':jnz'S 




Communication services 

We are 

Epfonnalftb*-i’ 
’'*tf ctAmtrv 


politics 



advertising, and more "Health 
Education "—that is, anti-smok- 
ing campaigns— but its central 
proposal is to phase in a 20 per 
cent, cut in consumption of 
cigarettes by gradually raising 
the price by 56 per cent in real 
terms. This would, of course, 
increase Government.- net 
revenue. 

Such an increase in price 
might sound monstrous, but 
historically it would not be 
quite so - bad. The tax on 
tobacco, taken as a proportion 
of total consumer spending on 
tobacco, fell from 78 per cent 
in 1951 to 58 per cent in 1976. 
Fags to-day are relatively cheap. 
They are not highly price- 
elastic — addicts will come back 
to buying them after an initial 
pause following a price rise — 
but the long-term trend towards 
lower taxation is surely not 
helpful to the campaign to 
reduce consumption, and hence 
Jung cancer, heart disease, 
and the other ills that ere 
made more likely by the regular 
inhalation of tobacco smoke. 

It is also true that the Govern- 
ment is aware of the argument 
in principle. In his 1977 Budget 


speech <the first one) Mr. Denis 
Healey said that there were 
compelling health arguments 
for increasing the tobacco duty 
in real terms. The Commons 
Expenditure Committee that 
reported on the subject last 
year recommended that “ an 
increase in duty to achieve a 
price increase sufficient to 
reduce cigarette consumption 
should be imposed annually.” 

The Government has shied 
away from this, for a very 
understandable reason: it would 
hit its own .voters hardest. An 
article by Joy Townsend in last 
week’s New Society reminds us 
that while the upper classes 
have reduced their cigarette 
smoking dramatically, the lower 
classes are still putting their 
lives at risk, and suffering the 
consequences. 

In 1981, she reports. 53 per 
cent of men and 46 per cent 
of women in social class I 
smoked. The figures for social 
class V were 62 per cent for 
men and 43 per cent for 
women. To-day under 30 per 
cent of men and women in the 
top class are smoking, while in 
class V toe figures are 57 per 


cent for men and 48 per cent 
for women. 

It may be that the effect of 
the doctors’ propaganda will in 
due course percolate down 
through the classes, just as it 
did with the birth control pQl, 
which was at first taken by 
mainly class I II women 
and only after a lapse of some 
years adopted on a wide scale 
by working ebss women. In 
the meantime, toe politicians — 
and especially Labour politi- 
cians this year — face a dilemma 


Smoking 


They know that although 
there is usually popular sup- 
port for the idea of higher 
taxes on “ vices." when the time 
comes to pay them the support 
fades away. They know toe 
effect of smoking on ill health. 
There is surely some correla- 
tion between the relatively high 
incidence of cigarette smoking 
in toe lower social classes and 
toe fact that the death rate from 
lung cancer of married women 
in class V increased by 57 per 
cent between 1961 and 1971, 
while for married women in the 


top social class the equivalent 
figure was 33 per cent For 
ischaemic heart disease toe 
statistics are just as dramatic, 
with men in the lowest social 
elass suffering an increase in 
their death rate per 100,000 
population, twice as high-as the 
increase for men . in Glass L 
(Figures from Joy Townsend in 
New Society.) 

The chosen way out has been 
indicated by an agreement with 
the European Economic Com- 
munity's Council of Ministers 
that Britain will be allowed to 
charge higher taxes for 
cigarettes with higher tar 
yields. The specified limit is a 
20 milligram yield, with a 
provision that the additional tax 
may not be' more than 20 per 
cent - of the normal cigarette 
tax. The effect could be to add 
between 6p and 7p to the retail 
price of high tar cigarettes after 
next week if the cigarette com- 
panies do not defeat the 
proposal in toe advance negotia- 
tions, or if they absorb the bulk 
of the increase themselves, 
which there Is apparently room 
for. 

Either way, a mere differ- 
ential tax acting against high 
tar cigarettes will not restore 
the incidence of duty to what it 
was a decade ago. when it was 
about a sixth higher as a pro- 
portion of spending on tobacco 
titan it is -now. If Mr. Healey 
is to square toe conscience of 
the Government on matters of 
health with its electoral hopes 
he will put at least 5p on a 
packet of 20 standard cigarettes, 
with the .high tar duty added to 
that 

The problem is more complex 
when it comes to alcoholic 
drink. While all authorities 
agree on the damage done, to 
individuals, families and the 
community by excessive drink- 
ing, most people, would also 


agree that moderate drinking hi 
a right that everyone, should be 
able to enjoy: The Expenditure 
Committee Report 1 suggested 
that the price of alcoholic 
drinks does have an effect on 
the rate of alcoholism, and so 
recommended that prices should 
be maintained at the same level 
relative to average incomes as 
they were at the time of the 
report in early 1977. A recent 
statement from the Minister 
for Health and Social Security 
shows that -the Government is 
nervous about this one. 


Self-defeating 


The propaganda being put 
out in advance of the Budget by 
top whisky and wine traders sug- 
gests that toe fate of duly is 
already self-defeating— for ex- 
ample, toe Scotch Whisky Asso- 
ciation says that income from 
excise duty on spirits fell by 
£43m. in the first nine months 
of this financial year following 
a 10 per cent rise in toe rate 
at the beginning of 1977. 

But the incidence of duty as 
a proportion of consumers* 
spending on spirits fell from just 
on 56 per cent in 1968 to just 
over 49 per cent in 1976. For 
beer, toe fall was from around 
37 per cent tb Jnsf aboVe 23 
per cent Alcoholic Vdpgfcvis 
now relatively cheaper toaxt’-a 
g 'Deration ago, and the .effect 
on younger people is already 
visible. Many .social, workers 
claim that what was h "drhg 
problem ” is now a “ drink prob- 
lem;” it would be* unreasonable 
to assume that this had nothing 
to do with relative price. : The 
case for a sharp rise in duty, on 
strong drink is as clear as it. is 
for one on tobacco. ' ' * • 2 


iFirit Report from the Exseodlttent 
Committee Seaetan 1976-77. Vote. 7-3. 
HM SO February 17, 1977. 


Joe Rogaly 


to the Editor 



From the Director 
Institute for St 
Information. 

Sir,— The ^"CdmAu 
supplement (March , — 

timely but it did hot discusS^aft 

important 8 basic . .issae^ ^' J -Jt#st ■ 

European countries .baveijfefc up HMB faM fcrimpi 
PTT (poste. telegraphy S&fr; 
phone), monopolies- de£ac%tea^D 
toe . . . idea at-., impfenenlfeg ' 


_ available ment- of other energy sources, different by a factor of about 
than , here, in particular those so-called six, the barrage would be a per- 
* become an alternatives that can meet the manent asset drawing upon a 
.'deprived medium-term needs *. of our national resource of Indefinite 
* -at :a sub- economy and so help to assure duration that we at present 
disadvau- supplies as the “oil rims out" waste. ’ The revenues of one 


-- . , , . . vear’s North Sea oil are needed 

Many people would argue that -,5_ ,1'. *v„. i. 


i; the . Z hv for its construction, that Is, per- 

tb«r op. th j s tiraesqale, .that is. by v BD _ « oer cent, of our total 
Post the year 2000, none of theatter- i _^ me f rom this oil at constant 


iPUf the 
g thik 

Bed'S ss5i«rio55ar««r &"*«£; “S e ;sVta g “i«‘isr.“i6 

organise 1°. n^meeS" per cenL increase in electrical 

vjmrf of plo™ Mng ¥0” in SSUttfcu- 

" ,tu j- ... i-irn *1 ♦ Aflonnl 


OS 


national; universal 

systems; the rpost __ 

bouse , -should' be 'enttilM^te-TO 
telephone. The 'opganigatiOBal _ 
structure ,to do 

fied by the British Post Office 1 — 
is of necessity 
bureaucraticv.-und b 


KSx;: /■ ffikfTS 


distmetion to he drawn in -the 5it°oriar^f}f-vp] n^rfpn ^ and^'em 

S’im-jj' - - »*!. - . *i* v M iiVi - riTLiftr -jlT -^PCHTf ilOHl AS f&T flficld 

Ttitercahveforffi of hydroelectric ^ ^ . concrete 

power Ifor which . both our 38 bcotiana wnere concrete 


p j-. caissons could be formed in. toe 

JiK — — - rft ~ ; and* - 0111^ — _ — -m-,T>v-nflw -nndpr-nsed'tVorth Sea 


) 


many-upw nnder-iwed'North Sea 

uureauu «.ui^. _«uu ana ui |*ulu. nvn», «#_.,»■ w,™,. ..world dependence upon it makes ~~ 

numy year* ahead with equip- From Wyrm. it at lfil^K weil devplDoed as building yards on the West 

s gjj hjsassrs^ 

i&tor salaries must have The fact that a commercial- 0 f the North Sea), to South 
tongue In his cheek, par- scale tidal barrage has yet to Wales , for which the benefits 
y in toe last paragraph, be constructed simply reflects would- be diverse and perma- 
tts attained- by. most, the /fact- thet- Jt is only those ? gnL . 
hahsed indnstries are .hydroelectric .-..sites .".offering- «p j. shaw • ‘ V ' ' 

’■disgrace against the gteater* working pressures that D ‘ epartmen ' t . of civil - 

hich must be obtained 4?ave Tvtlberto been judged Eneineerlnk. 

te, enterprise' if they oconomfe. , At toe World.^«sy -University of Bristol 

as going concern^. ' Conference m Istanbul last Sep- Queen’s Buildings, 

provide is^ ^ fraught with.polltiial .- .As^xmdi^n appears that If ^ “gued that UniDcrsiiy walk, BristoL 

rtifficuWel surfi svstemff-wonld you givfe a few senior people m a four-fold increase in toe 

crSSSff thPorofiSble busine^ nationalised industries a few world’s installed rapacity, of rrir --./vj*.. 
fSwhiCh SrPNiSK ' tbdusapd pounds more they v^h«dr^Ianf«u3a be experted by Ifle CltV - 

subsidise its rural services • produce- better results: this is^a the -year 2025. This -is possible- : r • 

suosidise its rural services. ' U h pletc ^ utter fallacy. ... only, . by - developing . low-head ’ 

sites, for which conditions are 1 luCo 
hydriuiQcblly comparable with 


years. It is fitadapted to tn-?ih 
corporate the new technology publ 
needed .foe toe convergence of had 
Telephone and data transmission ticiil 
at toe rateffrequired by tbe husi- The 
ness commnnity of a modern: of 
industrialized country. ' . roe 

The effect of permitting, 3 
vate enterprise to instal systenw 
which a PTT cxnnot or 


But this is, in fact heing.done r w Wvnn 
in toe UJ3. The Federal go nw ^ ^ 
muni cations Commission. St A 
scries of decisions over tohvQ&f 
ten years, has. permitted private 


activity. Traffic cream-skimming 
liversal 



safeguards protect the universe 
telephone' monopoly. -One effect 
has been the emergence of UJS. 
privately oon trolled data .com- 
munications networks providing . ... 

efficient services iii Europe; this From Dr. T. Sktta. 
probably provoked the formation. Sir,— Your leader of March 25 


The Severn 
barrage 


SSS -Svini r »*«. 

■'..raiiga. Ther^are many, juch--’" Sir,— I have .become mildly 
eStuarieii around toe world, a irritated oyer the last few 
number of which are now under weeks, while reading articles 
review. All could be harnessed oa proposals for toe set-up of a 
by 2000 given the political will somewhat more effective system 
to do so: the technology is well °* self regulation than exists at 
•• proven and exceedingly reliable, Pi^entat the ahwnre of suffi- 

•s hydro schemes have shown. S, c ^ Th e eli?orlal o^ 
In .the case - of the Severn March 31 “New watchdog on 


of Euronet Although the. UA-' on,- the ^hite Paper, “The barrage it Is worth noting that trial” states that the Depart- 
regulatory policy has .generated challenge ' of North Sea oil," one scheme mentioned by the ment 0 { Trade has now given its 
new problems, on balance it omits direct reference to Select- Committee in its report approval . to arrangements 
seems more jikely to provide toe tte Govermnentis stated strategy last September could yield in worked out by toe Bank of 
needed facilities than a rigidly to channel a -proportion of about 200 years as much electrl- England in consultation with 
controlled PTT. ; revenues • ad&tiing “from this..^? ,^,'iwoiild >11 the - known,- various City associations lor the 

To-day in -the UB. the fiist of r rel5tively:-'*roort-Bveil energy recoverable oil in the North'Sea. establishment of a Council for 
data cominunicatiMi te rimito- M ’windfall” into -the develop- while toe timescales toe Securities Industry. By the 

- v Bank, is presumably meant the 

. Take-over Panel, whose execu- 

tives during their period ofj 
secondment to the Panel, are 
and those of a -statutory principle. Neither employed by the Bank of 


Complex tax question 


From Nr. JV Neuman*: 


deductible. 


revenue nature which may be profit nor loss, may be antici- England- The. absence of any 


C ;„ T r^awfn Aa «tmnf «n«nr revenue namre -wnica may bc pn«i 
.onMum-BSkCoS»S(MSS deductible. _ U seemsto me. how pated/;.. ... _ mention of toe Stock .Exchange, 



flV+Wfl ever, to be difficult for the banks Applying the same principle to 0 r, more precisely, the- QuOta- 
Involved to claim on the one losses on foreign currency lia- tions Committee and its Execu- 
^ han ^ that these subordinated... toUties, deductibility should only tive the Quotations Department 
other loans should he treated occur, when the actual lo**s is disappointing. 

sF^SrSsStfsw tfB s«aa & 

temT foreito currency capital ! e ' a previous employee with the 

and thus the deductibility goes- .^e fact that firms of account; Qnotations Department my 

riot, is of exfream Importance. CTOESe « ™ ness - . - - ants have not qualified their duties were t0 that com- 

. This auestion also . affects The other matter which I think imports -on annual accomits panies ^ their financial 

branches of overseas banta stoee yoitt corrtemotMmt' should have means nothing. All that . the advisers adhered to the spirit 
currency - fluctuations cause addressed himself to is toe im? current accounting, standards w we y ^ the laid down rules 

l* rss 1 ; a.-iarwa* 

sr,f us* 

worth-while coxrectiDE and Important etfect’ob the currency SJ? r2!ly Plllc1 ' 8 own .rules came some- 

w some ’ if the statements what easier to the hill time 

* m ** VWi gfflafflS ^ Qtmutions 

t«fi5SA2l5S 

' adequate avoiding ov ® T ranei. - . 

t toe problem does ^ have no doubt that the 
. . . .... itot arise. - - Quotations Committee of toe 

vffien toe bill was taHnu the anneal be- Stock Exchange and toat Com- 

mys^F, fedk that it nas more bonoured qt sol d. Or fo llowing. GimmSsioiiere » j ttee’s . senior executives, 

than -a good -a.anoe.of sn«^ the . «£.- SSAmSSI? aSSSSjS » “J theyterm than- 


made in ttat : aitlcto by __ _ _ 

Laffe ily- - toe taxation of long-term foreign 

The Inland Revenue does not currency bills Of exchange ptuj- 

take : Issue with " * * ' ’ — 

lightly: ' it feete that 


ingriri me laW^-cbald-tra^ be y. Heyvrorto' Talbot Q.C, suo- 

.reverfeed ;* * " — — 

rightfrie 
Lords, A 

not gy-jW- I—Bg: « jg z: It would be pleufng to- see 

more credit .mi encouragement 

any means gnqeipteed of succe^ to* ttiat to® for several more ^venjo the Stock Exchange as 

■ fFbOtd years until either the Courts hare it carries out its none, too easy 

J L. 1 .J ,1.. Vttse 


It Is diffirtdfto argue to 

nical- merits; •i-spL tbe ;■ 

Revenue’s cas^ With out referr ing -^ 
to the tax cdses which s®. 
the attftnde’effsffl.?- courts tit 
distinction bmwsen I08srf;?f- 
capitri natis^T ^HcH rito 


:were' 




i to? commercial a tenuity- 


a, ruled or toe Government has self fanpowd task of regulating 


■Thoa^hcation 




» passed - legislation or made a- the securities industiy. 
rfeemsesstof ' •* " ' .. M. F. Pari cer. 

• .'hbwwvtt : aWMeet tP- oae JT- A- Newman. . i&pomnfidd.ltoaA 

' .^pagh . ?3tto&ng . Lane, ELX .- Clifton, Bristol^ _ 


GENERAL 

UE. official reserves (March). 

Cabinet expected to dedde-on 
additional public spending in 
coming financial year. 

Mr. . Michael Edwardes, chair- 
man, British Leyland. is guest 
speaker at Foreign Press Asso- 
ciation lunch. 11. Carlton House 
Terrace, S.WX 

EEC Foreign Ministers meet, 
Luxembourg. 

EEC Agriculture Ministers 
begin two-day meeting, Luxem- 
bourg. • • 

European Options Exchange 
opens In Amsterdam. • 

Mr. Max Madden. MP. chair- 
man of Labour Party Employment 
Group,,-, heads deputation of 
Labour MPs to meet Mr. Albert 


To-day’s Events 


Booth. Employment Secretary, in 
protest at Lucas Aerospace re- 
dundancies. 

First meeting of Electrical 
Technology Requirements Board 
of the Department of Industry. 


PARLIAMENTARY BUSINESS 
House of Commons: Prime 
Minister's question time an BBC 
Radio 4. Wales Bill committee 
stage. 

. House of Lords: State Immunity 
Bill, third reading. Scotland Bill 
committee stage. Industrial 
Training Levy (Engineering) 
Oder 1978. 

Select Committee: Expenditure 


(Social Services and Employment 
sub-committee). Subject: em- 
ployment and training.. Witnesses: 
West Midlands County Co uncil 
and District Councils, Manpower 
Services Commission, and the 
Bishop of Birmingham. (9.30 a m 
County Hfil, Birmingham). 
OFFICIAL STATISTICS 
Capital issues and redemptions 
(March). U.K. banks’ elegibile 
liabilities, reserves assets, reserve 
ratios and special -deposits (mid- 
March). London clearing banks’ 
monthly statement' (mid-Man*). 
Hire purchase and other Instal- 
ment credit business (February). 
Retail sales (February-final). 


COMPANY RESULTS • 

Bank of Scotland (full year). 
Grattan Warehouses (full year). 
Guest Keen and Nettlefolds (fun 
year). Mitch eB Cotta Group 
(half-year). Savoy- Hotel (full 
year). 

COMPANY MEETINGS 


British Bank of the Middle East, 
99, Bishopsgate, E.C., 11.30. Eng- 
lish and New York Truk; 20, 
Fenchurch Street. E.C. &45. 
Greenfield MRletts, Abercom 
Rooms, E.d, 12. IDC, Stratford, 
upon Avon, 12.45. Lancashire and 
London Investment Trust, Win- 
chester House, E.Q, 12. Abel 
Morrall, Redditcb 3. Marcbwiel, 
Chester, I3_ Wagon finance, 
Sheffield. 12. 








• • • • 




WAVi 


•••• •••••• 

• •••• 


•••ft 


• • 


• ••• 


Banque Nationale de Paris Urnited 


•V. 


• ••• 




•••• 


«•••• 




• •• Ml 


• ■ft. 


• ••ft 

•••ft •■■•• 

••••••••••••••••••«\ -T 


BNP 


Another year 


of expansion 


Extracts from the Statement 
by the Chairman, 

Sir Patrick Reilly, bxji.il. u.e. 
Forthe Banque Nationale de Paris 
Limited 1977 was another year 
of expansion. Total assets again 
increased from £597,247,000 to 
£671,251,000 and shareholders' 
funds from £24,293,000 to 
£31,443,0 OO. For the first. time 
since 1970, however, pre-tax 
profits suffered a relatively small 
decline from £4,182,000 to 
£3,917,000 which was the un- 
avoidable result of the se vere drop 
in interest rates over the year but 
profits after tax showed an in- 
crease on 1976. 

Our strength in London is our 
basic commercial banking busi- 
ness and with the diverse 
activities and worldwide con- 
nections which we have we are 
able to overcome to some extent 
fluctuations in particular sectors. 
Thus the effect of declining inter- 
est rates has been counteracted 
by -our activities on the Euro- 
currency markets. We maintain 
our position as a leading foreign 
exchange trader in French francs 
and in other major currencies. 
We look forward in 1978 to 
developing our leasing services 
to our clients and also to involve-' 
ment in export finance. 

During the. year the Bank added 
to its Representative Offices in 
Leeds and Edinburgh a new 




Ten Year Recotd 



Total Assets 


Representative Office in Birming- 
‘ ham. These make a very useful 
contribution to the growth of the 
Bank's business and our Knights- 
bridge branch, specialising in 
personal banking, continues to 
make very satisfactory progress. 
Our associated -bank in Nigeria, 
the United Bank for Africa Ltd., 
has had another very good year, 
the . dividend increasing from 
£266,000 to £420,000. 

The Bank's new building on our 
old site was completed on 
schedule and we returned to 
King William Street at the end of 
Februaiy. The construction of a 
fine building in the heart of the 
City is proof- if any were needed, 
of confidence in London's future 
as a leading financial centre. Its 
completion will enable our Bank 
to strengthen still further its 
contribution to the expansion of 
the international BNP Banking 
Group to which we belong. 


Banque Nationale 
de Paris Limited 


••v.v. 


Head Office Knightsbridge Branch Representative Offices 

KJ-ilt 21 MoM He Street. 11/12 Pork Row. Wesley House, 

8-13 King WiUicjn Street. tondonSW31BW. Edinburgh B437PE LeedstSl 5HD. Vtatertoo Court, 

let (01)5894491. let: (031)2263388. Teh HB32) 443633. 37 Vfeterioo Street, 

Tefc {01 >-6265673. Birm'mghaniB25TJ. 

TeJ; (021)236973$. 

BNP Croup Head Office 

Banque Nationals d© Pbris.Tfi Boulevard des ItaJlens. forfs75009 ^ 










COMPANY NEWS 


Freemans London tops f 13m. 
— £8m. bank loan arranged 


DIVIDENDS ANNOUNCED 


HELPED BY the progressive 
drop in interest rates Freemans 
(London SW9) expanded taxable 
earnings in the second half 
from X5.S4m. to £755m. to finish 
the year to January 28. 297S. with 
total profit up £2.72m. at £15.0601. 

Excluding VAT. sales readied 
£1 66.47m.. against £l40.61m. Profit 
was struck after interest of 
£684,000 l £457,000). 

Tax of £6.i am. f£5.45m.) left 
the net balance at £G5lm. 
(£4.9m.) and stated earnings per 
25p share emerged at 275p 
(21_2p). A net final dividend of 
35232p lifts the total to a maxi- 


mum permitted 52432p (5-3G91p). 

The directors say they are 
expecting 1978 to be a year of 
steadily increasing consumer 
spending. After an intensive 
agent recruitment campaign the 
company is in a position to share 
fully in the extra business avail- 
able. The number of active agents 
at the end of the year was an 
aU-time high of 437.000 (403.000), 
and accordingly the Board has 
planned for good volume growth 
this year. 

So far business is encouraging 
but it is not yet up to the high 
targets the directors have set 


Although over the year short- 
term borrowings increased by 
under £2m. to more than £6m-, 
in January, 1978 an JESm. medium- 
term loan over seven years was 
arranged with the company’s 
bankers. Of this, £4m. was taken 
up in January with the remaining 
£4m. to be taken up by December 
this year. 

This is in addition to the 
company’s normal overdraft and 
other . short-term facilities and 
should allow ample cover for 
expansion during the coming few 
years, the directors comment 
See Lex 


Ash & Lacy .. 3.63 

Combined English Stores 1.71 
James Dickie & Co. 2.19 

Highland 5 DistSeries int l** June 7 05* —* IS 5™"™* pr ° 5ts for of is k one-for-one scrip Issue. The balance sheet at tha \ 

Charles Hunt 3.3 — 2.72 5 qr Soq Spirax Saico Engineering rose by There was an extraordinary de- end shows net current anL’.j 

Ocean Transport 453 June 1 3.55 g.19 750 2 0 - 5 per cent from £433m. to -a. bit of £383,000 (£233,000 credit) £10.45m. against £7.71m. and i 

Provincial Laundries 054 — \ 05 0A p.gg record £5.1m. on turnover ahead year _gptnpmmg deficit net assets at £18.65 m. (£i4ju' 

Scottish Television 1575 1.14 256 2.13 by T3.5 per cent, to £2957 m At .000 CCZSO.OOO surplus) on curj The group is an intenw.H 

l In’S?- May 20 3.66 S58t 655 halftime the directors reported ^14 jW(M£15LqM)V . specialist concern in 

Union BOrnere a00* June 6 600 500-600 profits up from £L94m_ to £22Sm~ equipment CW 

\ arrow & Co mt 1.7 June20 L5 - 4.61 and they said that in the ateSS .g^tSe *5f “aeOMO “ I5FE 

Dividends shown pence per share net except where otherwise stated. i? n »f 0 /? seei L circumstances £57000 (£2.000). ' • comment 

•Equivalent after allowing for scrip issue. tOn capital s ® cond half .Profits figures should - 1977 ires with aim net «» -♦ 

increased by. rights and/or acquisition issues. $ Increased to reduce continuing improvement v-. JSS " n,ost lts products 

disparity with final. 5 Additional 0.0175p for 1976. * Belgian francs W7th total profil at a rocord leveU ‘ *512 ltdt energy conservation, 

through out The directors now say. that the ^cSSgn&Z— *§? 2 ™ that Spiral 

year's results, which must be eon- Overseas companies, etc. 2AU . ties ““ shown impressive gw 

. - side red against a background of payable « smee Die 1974 oil crisis. The 

4 ~->i -mm m -m continuing political and business Erf*' heh,re “* |*®S ? as * > ^ n no exceptioi 

WoPATKfl nlf uncertaintyin various parts of the I £«i iS ^ 

t .1 till 1 flrfll SllilTII) world, are due to the need for orenen m ns J ??*!,?*® 1 ®** 80 Per i 

^**4 ■ ■ _ VJxWUi KJ the group’s products across the Nel prefit 2,646 tar *p 1®1® and 42 per cent, ia 

"broad spectrum of industrial and 45 £*.1® p€ , r cenL sales rise im 

I rr a commercial applications and ** 2§w altho ««3 i 

flTT I 1 AAfltt I V*nriC 1 TIAl^' greater understanding of the need sn no 

II Y \ Mm.TZ 4 § || | I 4 ll|^||l||| for energy conservation and maxi- Proposed final »t to ^®„ a jl rers £ ,jr affected by 1 

• «7 V>* M. mising output through greater*^ 1 ® 1 j- — .— l * =38 less rates of exchange against stei 

plant efficiency. t Credit Nevertheless, margins, bare 

SECOND HALF pre-tax profits at And there was an extraordinary order intakes so far ia the curl T ? ie haa .t d °P* ed t . the # ei, ,‘ JEE5 at a time ' 
Ocean Transport and Trading debit this time of X5.78m. against rem yea^hare teen ssXsfaeiSE er ^ J 3r !«ciple s or ED2t when deal- most other «>mpt 

slumped by a half from £255m- to a credit of £55,000. SS adY foreran ™ii£, e 9 S: “?•. with “Change differences •»»«*»» squeezed. In « 

£12.9mi and despite a first half ■ mb ■ mm j^fed for^riw tacreSaM f be- ? r,sing 00 lh f .™ n Z erSi0 ° ° T >*• =° ns fn? t, £ D Sp,I ^ t heheve* 

lead of £1055ut at £26J4m. the 1000 aM Interest in subsidiaries at the be- the UJC. has made a more 

^osm^?^ L t£S2n. behind * SSte SSu" — - • si IS S^SsSS J- MB* '“T SS^iSSSS^iS 1 *J£l& SSmomSSAT-C; 

SSSSi^fSsS* 5 - s - 

vvay stage that although expecta- profit on stups disposal 2.401 Jwsm®® srowth wili contlrme. account under' extraordinary to 46 per cent, of total, i 

tions for the remained of the year a»re of aa odaua ... 2s.ois 22^113 they say. They add that .it would jteins . Under the revised basis of appears to be plenty of row 

were not qiute so buoyant as they r g* t« — to grow even faster as a result of accounting exchange differences additional growth in bve 

had been, they expected the full proai'"!!!"!"!"";" " si^i ? n / of business confidence plating to fixed assets have been markets and Spirax has dir 

years profit to exceed those for Exchange credits ‘43s -ijss m l° major trading areas. taken direct to reserves; other part of the £2.4m. rights pro 

1976. The level of profits expected From minoriues 537 t4.i"4 On capital increased from last differences continue to be. re- into a new sales and ware)- 


Current Of 

payment payment 


• Carre- Total 

spending for 


May 23 
July 3 


Financial Times Tuesday April 4 1973 

Spirax Sarco up 20.5% to £5i 
and still making progress 


May 20 
June 6 
June 20 


Second half slump 
by Ocean Transport 


Belgian loss hinders CES recovery 


AFTER FALLING from £lJ5m. 
to £0.B5m. in the firt half, pre- 
tax profits of Combined English 
Stores almost caught up in the 
second half to finish the year to 
January 28 at £4 54m. compared 
with £4.61m. 

The directors explain that a 
strong recovery in the U.K. in 
the second halt made good the 
first-half shortfall but the Bel- 
gian subsidiary Lindor SA in- 
curred a loss of £436.000. Lindor 
was reorganised during the year 
and the Board is confident that 
the results for the current year 
will show a considerable improve- 
ment. 

Cash at bank has risen to £65m. 
and the strong recovery in all 
mainstream activities in the 
second half has continued into 
the new year. The Board is con- 
fident that trading conditions wifi 
continue to improve and that the 
group will benefit accordingly. 
The group is in a strong financial 
position with substantial cash re- 
sources to pursue its expansion 
plans. 

Full-year earnings are shown 
at 12.4p U5.64p) per 12Jp share 
and, as promised, the final divi- 
dend is the maximum permitted 
at 1.7066p net for a 35423p 
(25029p) total. 

The loss by Lindor which com- 
pared with a profit of £9,000 last 


year, was mainly attributable to 
exceptionally large “mark-downs” 
from normal selling prices of 
merchandise and compensation 
for loss of office arising from 
management changes. 



.WOO 

moo 


. 56504 

54.470 


. S4TC3 

4-TO 


jsr 

no 

Proiu before tax' 

<UJ42 

4,613 


1.5*0 

1.536 

Xvt profit ... - 

. 2465 

3.077 


13 


\laklna 

. 2,4io 

3^JS3 


16 

16 

Ordinary . 

640 

54S 

To reserves 

1X19 

2.514 


•Alter crediting £70S.oea f£S08.000- from 
disposal of retail stop properties m 
ordinary course of business. tFor HP 
profit. 

No provision has been made for 
tax that is likely to continue to 
be deferred for the foreseeable 
future. The figures for 1976-77 
have been adjusted. 

The proportionate increase in 
tax is due to a redaction in tax 
relief for capital allowances and 
increased value of stock and to 
the absence of tax relief for the 
-loss of Lindor. 

• comment 

The Belgian subsidiary apart, CES 
has turned in reasonable figures. 
The menswear chain, Fenton, 
showed profits equal to the pre- 


vious year despite a slow start, 
while the ladies' accessory chain, 
Salisbury’s, managed Its seventh 
successive year of growth. The 
furniture outlets were almost up 
to the comparable period — a good 
achievement against the sector — 
and the joint venture in Germany, 
with the Dutch insurance com- 
pany, AMEV, which operates a 
women’s fashion chain turned in 
higher profits. So the only dis- 
appointment was the Belgian 
raanufacturrng/retailing business. 
Around £350,000 of the loss there 
related to the costs of the factory 
closure and the small retail opera- 
tion that remains could be back 
into the black this year. At worse 
the losses could be fairly small. 
But this experience has not 
soured the group to overseas in- 
vestment A further joint venture 
in Europe is under negotiation, 
and this could be a big one. Cash 
at the year end was £0m_ This 
year the Kendall acquisition could 
chip in £200.000 and with a 
recovery in consumer spending, 
which should work through at 
discretionary level later in the 
year, the outlook is encouraging. 
Outside estimates are already in 
the area of over £5m. At 80p the 
p/e of 65 and yield of 65 per 
cent covered 3.8 times appear to 
lag behind events. 


' .;,u» £ 

t- r ,ti 

.1 com 


£12.9mi and despite a first half i9n is; 

lead of £10 55m. at £26.14m. the .g* ** 

group finished 1977 behind at Depredation ' 1 9.61s . i7„ 

£39. 08m. against £41 5m. Trading urcfii i6.83i zl; 

The directors said at the half- £2!!£ft, l SS. h, “ iKS 

way stage that although expecta- ^flTon Sp^aigiKisai' ^ H- 

tions for the remained of the year share or associates ... 25.01s 22; 

were not quite so buoyant as they betam t» — 3%sn m 

had been, they expected the full '^5 ®.| 

year’s profit to exceed those for Exchange credits”!"" ■43s -i; 

1976. The level of profits expected From mlnoriues 537 t4. 

in the second half, they added, ^ 

was affected by transitional effects Xttnhwahk^ deb u ” 2 6 jk ssi 

of containerisation by OCL of mridewis Sjh - a.i 

New Zealand and South Africa Retained iri&s 17 i 

trades. * Debits, t To minority. 3 Credits. 

Trading profit fell from £22. 17m. §00 Lg X 


trades. 

Trading profit fell from £22. 17m. 
to £1653m. the pre-tax profit 
included a Lower profit on disposal 
of ships of £L53m. (£2.4m.). The 
associates contribution amounted 
to £26.02m. (£2252mJ. 

Before extraordinary items, 
earnings per 25p share are shown 
as 29.67p (2855p) and the divi- 
dend is stepped up to 8.I8Sp 
(75901p) with a final of 45273p. 
The directors Bay that if the rate 




years rights issue, stated earnings fleeted in the profit and Joss ac- operation in Paris. The star 
ja'S!. per 25p share are 26.3p (25Ap) count under extraordinary items, ,270p on a p/e of around 19 j 
area and the dividend is lifted, to. The comparative figures for 1976 yield of 5.1 per cent, are d 
17,614 858S7p ( 65463 P) with a final of- have been restated to reflect the looking for continued gr- 
ns. 5_L9p, as forecast Also proposed revised basis. Cover is two and a half tinv 


THF ahead 
in first 
quarter 


Equity & Law seeks broader spread 

New individual life business of pared with £454m. at the begin- and. simplify its group bn 
Equity and Law Life Assurance nin «- - • - fiufhiR .the past year and 

Sodetv fell substantial^ in 1977 Mr - Cox reveals that of the achieved considerable su 
society leu sunstanoany m totaJ aTwaunt Q f new money avail- New business prospects - 

reports Mr. P. D. Cox m his chair- aWe for investment. £4§m. was pensions seem better than fi 1 1 • . . ; 
man’s statement, with new annual invested in the appropriate units past few years. V . , ' 

premiums 9 per rent lower at for unit-linked policies... Of ' the Jn the Netherlands, new 1‘ - 1 

nun, ncmrail 91 nan mnatninir mnrmo almnM nil W91 nremillms ill 1977 Went H' - 



Yarrow at £0.77m. midway and confident 


\ ^ 


PRE-TAX profits for the half-year 
to end 1977 of Yarrow and Co. 
came to £767,060 compared with 
£944,000 for last year's first half 
and £15lm. for the full period. 
Turnover was £3.o«m. (£351m. 
and £652m.) 

Profits include investment and 
deposit income of £303,000 
(£226,000 and £440,000), dividends 
from Yarrow (Shipbuilders) nil 
(£500,000 and £750,000) and profit 
on sales of investments £302,000 
(£60,000 and £248.000). 

Tax takes £219.000 (£195.000 and 
£309,000) leaving £548,000 (£749.000 
and £15m.) available for distribu- 
tion. 

The interim dividend is 1.7p 
(1.5p) net per 50p share and the 
maximum permitted for the year 
under current legislation will be 
5.073p (4.61 17p). 

The directors consider the results 
satisfactory and expect trading 
profits and investment income 
during the second half wifi be 
maintained at the same levels and 
may show some increase. How- 
ever profit on sales of invest- 
ments will not be significant. The 
1977-78 accounts will include a full 
year’s interest on the Treasury 
stock already received as a first 
payment oh account of compen- 
sation, and also such further dis- 


tribution from ■ Yarrow (Ship- 
builders), as is authorised by the 
Department of Industry. 

In 1976-77 Yarrow received from 
Yarrow (Shipbuilders) dividends 
of £750.000 for that year. This 
brought the total distribution in 
the four years ended June 30. 
1977. to £2.6m. out of total profits 
of £H58m_ available for distribu- 
tion. 

The dividends were the maxi- 
mum amounts authorised by the 
Ministry of Defence and latterly 
by the Department of Industry. 
The interSon underlying the 
dividend restriction provided in 
the loan agreement with the 
Ministry of Defence was to safe- 
guard the Ministry loan to Yarrow 
(Shipbuilders). It was not en- 
visaged that the restriction would 
affect the entitlement of Yarrow 
and Co to the retained profits of 
its shipbuilding subsidiary. How- 
ever, the nationalisation of 
Yarrow (Shipbuilders) has re- 
sulted in its undistributed profits 
forming part of the nationalised 
equity now owned by British 
Shipbuilders. 

Accordingly an application has 
been made to the Department of 
Industry for approval of a further 
substantial distribution by Yarrow 
(Shipbuilders) to Yarrow and 
Company, which the Board con- 
siders is fully justified. The De- 


partment of Industry bas in- 
formed tbe company that its pro- 
posals are being studied very 
carefully and that a substantive 
reply will be made as soon as 
possible. Tbe amount authorised 
-for distribution will be credited 
to the profit and loss account for 
1977-78. 

A first payment on account of 
compensation for Yarrow (Ship- 
builders) and Yarrow (Training) 
was made In early February 1978. 
Satisfied by the issue of 93 per 
cent. Treasury Stock 1981. The 
nominal amount of stock received 
was £1.406m. 

A special payment of interest 
which had accrued on this stock 
from vesting date, July 1, 1977, 
to September 30, 1977, bas already 
been received and is included in 
the half-year’s investment income: 
thereafter interest will be pay- 
able on April 1 and October 1 
each year. 

The directors point out that in 
December 1977 the company ac- 
quired 75 per cent, of the capital 
of Ritchie Taylor Engineering Co. 
(Glasgow) for £360,000. There are 
good prospects for some expan- 
sion of this company, they say. 

The Board is actively pursuing 
several other opportunities for 
future investment and has every 
confidence in the continued pros- 
perity of the group. 




„ . £5m. and sums assured 21 per remaining money almost all was premiums m 1977 were .2| 

TRADING PROFITS of Trust cen^ down at £427m. This redue- placed in the fixed interest cent higher at £I.9m. and 
Houses Forte, the hotels, leisure tion was anticipated following market— £54Jm. with only £5tn. new money available for i-:r 
and catering group, in the first the change in commission scales invested in equities. The group ment, £2m. was put into et'JI 
quarter of its current year are t0 a premium related New had a net disinvestment of £8im. and £7m. in fixed-iif 
running ahead of those for the annual premiums under group h? property, which consisted of securities. The Society wa .. 
same Period a year ago. policies rose by 6 per cent, to sales of £14im. and purchases of consolidating the sign' 

U>rd Tborneycroft, chairman, £5^ ^ overall new annual £6m. Tliere was also some position established In the 
warehoiders at yesterday's prem iums were marginally higher replacement of farms having life assurance market 
AGM that profits to date had £145m excluding managed sitting tenants by farms managed Meeting at 20; Lincoln* 
exceeded budget and that at- funds ” on behalf of the Society. A sub- Fields, W.C. April 26 at I2J 

though the first quarter only con- ^ sidiary Equity and Law (Farm , 

mbuted a small proportion of group, states Mr. Cox, has Management) was formed last • Comment 

the full years profits it was year to be the tenant 0/ the Equity and Law had to ac 

nevertheless an indication that a broader spread of individual farm* drop in individual new. h '■ 

the group was on course. business with the objective of At en d 0 f the year, the last year, while endeavour * 





Cargo downturn trims Mersey Docks 


FOLLOWING A MARKED down- 
turn in general cargo traffic in the 
second half, taxable profit of 
Mersey Docks and Harbour Com- 
pany declined from £45Sm. 10 
£4.1ra. in 1977. 

At halfway, when announcing 
a trading profit of £3 5 6m.. the 
company warned that figures for 
the second half would not be as 
favourable. 

Turnover for the year was 
£62.6fim. (£60. 77m.). while Ibe 
amount of general cargo handled 
fell from 1584537 tons to 
IJ61529 tons. 

The result was after interest 
charges of £4. 17m. (£455 m.) and 
a provision for pension liabilities 
of iO.om. (£0.8m.). 

Tbe company has accumulated 
tax losses of £49m. and again no 
tax was paid. There was ao extra- 
ordinary profit of £2,000 (£25,000), 
and eanolngs per share are shown 
at 20.5p (2158p). 

Sir Arthur Peterson, chairman, 
largely attributes the group's 
result to increased efficiency and 
continued co-operation from live 
work-force. 

On cargoes, he say.s the marked 
downturn In general cargo traffic 
i:> being experienced at most U.K. 
ports. “It’s a result or the 
increasing use by the shipping 
lines of container ships, and the 
reduction in world trade. 


- ** There is, ia the U JC, an 
excess of cargo handling facili- 
ties. Rationalisation within pores 
is essential to obtain economies. 
We are therefore taking the neces- 
sary steps to reduce our general 
cargo facilities to match tbe 
requirements of trade,” be says. 

Sir Arthur warns of the danger 
of'a price war between ports, but 
says that Mersey does not pro- 
pose seeking unprofitable busi- 
ness. 

A further capital repayment of 
3p per unk will be made to 
Redeemable Subordinated Loan 
Stock holders, which wifi take 
£601,000, and lift the total repay- 
ment on the stock to 8p per £1 
unit 

Reed cutback 
in Canada 

In line with the divestment pro- 
gramme announced in February, 
Reed Paper of Toronto, tbe ailing 
subsidiary of Reed International, 
plans to sell or close its flexible 
packaging business in Ontario and 
Quebec. The operations bad been 
unprofitable for some time. 

The Canadian company, which 
reported an operating loss of 
$c20m. and extraordinary losses 
of $C46_2m. for 1977, will retain 
its flexible packaging plants in 


Manitoba and Minnesota. These 
have been profitable and are sup- 
p ying paper bags and sacks to 
regional and national customers 
in Canada and the U.S. Nor do 
the divestment plans include the 
company’s corrugated packaging 
business, which will also contiaue. 

The portion of the flexible 
packaging busines to be disposed 
of includes the manufacture of 
paper bags and sacks, folding 
cartons, and high density poly- 
ethylene film and bags that are 
sold under the Hydene trademark. 

The directors say the company 
has held preliminary discussions 
with a number of prospective 
buyers. They also state that Reed 
Paper's subsidiary, Reed Limited, 
has sold its drapers' manufactur- 
ing and distribution operations to 
a group of private investors for 
an undisclosed amount of cash. 
This operation had been a money 
loser for a long time 

Reed's Sanderson Fabrics dis- 
tributing business is not included 
in the transaction and will 
continue trading. 

BARCLAYS BANK 

To-morrow’s annual genera] 
meeting of Barclays Bank is 
scheduled to begin at 250 p.m. 
and not at noon as indicated in 
yesterday's diary of tbe week’s 
financial events. 


He said that be was optimistic replacing Uie business pot mnr fegt value of assets amounted find new’ market outlets i 

about tourist trade in the current obtained owing to the changed t £650m. which was split business lost as a result 

year, an optimism he said, that commission terms, and the will l b ^ vitiue to 52 per cent in change to a premium-relafe ’ 
was supported by recent British continue. He potato out that ged-taterest, 27 per cent mission structure. Butt! 

Tourist Authority statistics. The several new types of contract guides and 21 per . cent property, back did not stop the 

group would also benefit in 1977- have been introduced as well as g^p^y has over the past two improvement in the rash' f 
1978 from the first full year’s con- promoting an extended range of orthree years reduced its proper- the Society where both pr>- 

— - ■ . and ti^ditional policies. tion of equities and property by income and investment i-- 

Ajhicv .u huood Knott hotel acquisitions. The report shows that annual putting most of its new money in showed - a continued - 

Sir Lindsay Alexander. .** ,„ e premium income in 1977 rose by fixed-interest. It intends to growth. The actuary's va! 

chairman of Ocean Transport 10 P er cent to £74. 6m. and single maintain this present proportion shows a profit of £14.1m. 

*E£L£PJSE* EEBTV52 premiums received were 43 per subject to unforeseen dream- fll.7m. at the end of Wi 

of tax is reduced then the net in the m5fent roa? TTie cenL hi " her at £18 - 3m - GroSs stances, Mr. Cox forecasts a the shareholders have n 
dividend wiH be increased pro- croun would also be lMklne to » nvest »ent income rose by film, farther share mo-ease in Income, their portion of this nse 

portionsteiy. Kg? ?Ser ^orudem 55es? to £45 - 5na - C,aims - “Pen*» and the investments held at end-1977 company is. forecasting a - 

Net profit emerged as £3 1.77m, Sentis H and quoted ffis reclm taxation payments were up by 15 should produce an income in 1978 cent rise in Investment f- 
(£3L58ttL) after tax of £75m. 522 to acouire the cEv *** « nl - 10 «7.9m., so the long- of £5im. „ on the assets held af the . 

<£9.63m.) which relates to the Kkchen ^hafn ^ ^he U s „ IJ term funds had a net cash inflow Mr. Cox refers to the new State 1977 and management ej 

liability estimated to arise on the simple. THF wouid ils? be °l £ ® 7 - 9m - £545m. in 197^ pension scheme, about to come last Tear showed a F 

profits of the year together with mmcine to aoouire manarement Market value of assets rose by Into force. This would make the increase than in previous 

tiie ACT arising on the dividends contacts which would allow It to £145 - lJn - 0D the year of which administration of many • occnpa- The dividend is covered ti_ 

for tbe year. No pro>-iston is made earn revenue C with a minimum of amount I35m. was transferred to tional schemes more difficult for that prospects look good fi 

for taix ^equalisation arising from fnv^em by using eSSng Sai Investment reserves. Thus the both .employee . and Ufe end restrictions shouM be . 

timing differences for accounting age ment expertise. value of long-term funds stood at companies. The Society had made At a price of 162p, the 

and tax purposes of depreciation Grand Metropolitan announces at ^ end of 1977 0°™- considerable efforts to rationalise yield 6.3 per cent . 

and other charges as in the that during the three months to ■ 

opinion of the directors no December 31, 1977. the value of TT* 11 J Trsk* j *n 

» KffsriJSttESM Famous Grouse lifts Highland Distiller 

This change was im|^«nente<I corresponding period of the pre- 4 

during 1977 and figures for 1976 vious year. External sales Include PRE-TAX profits for the six has been heavy forward buying recorded a good increase 1| . 

have been adjusted accordingly, overseas sales and these are con- months to February 28. 1977 at ahead of expected industry price and this was maintained—,;. . 

There were exchange adjust- verted to sterling at the rates of Highland Distilleries Co advanced increases. first three months of tiiis 

ment credits this tjrneof £433.000 exchange ruling at the end of from £1.445,000 to £1,710500 on in view of increased costa it is heavy forward buying ahl 

compared with £L79m. debits, each quarter. sales of £21m. compared with intended to raise the price of The expected price increases 

£15.77m. Famous Grouse in the near industry. Satisfactory grow’ 

fi a * * 1 r- f cm t A /yy The interim dividend is lifted future. A high level of invest- registered in overseas tr 

\PAltlCh I V Iff! / 3y/r\ Irom 08 P T0 lp P et Pf r 2 °P sha, ' e ment is being made in the man- particularly Italy, franc* 

kJLUtlloil i v U.E# AmTm /l J to reduce disparity with the final, ber of overseas markets and sales Japan where in the. past i 

-*■ Last year’s total was 25S72p and there are also expanding at an have been slow against th 

AFTER A 30 per cent increase in crease in reserves O.Wre. °f "S, 11 ™ 6 '’ ' ,ace ' reSTw'fe S 

advertising revenue from £11.66m. goodwill was written off. inSrewnffiMooSttaMSaiand 0rdera 1oT new 6Wngs for the j? ?ron5te 

to £l2.13m. pre-tax profit of A final dividend of 15705p net SJSSJX nnt nm SS <^nndar year 1978 are margin- X«L in tS rountries- 

Scottish Television climbed 24 per per 10p share takes the total to JSSSSS 0 ” Tax absorh K Slfi’oSo aU y of last year. Actual « AurtSiSfJwfeitl laTn 

cent, from £1.41m. to £L74m. m 25595p (2.13pl which will absorb sales of new and mature whisky SooSSd aSTSSritoft? 

197T - £123.010 (£109,322) with an C01 ^ the hall year under review are SJSSrlS Set J 

The result was after Exchequer ?ddj tional 0.0l75p to be paid for gg^pg at comparable levels to last price increase— lil 

Levy of £253m. against £15Sm. h , flfIK Sales increased in the first half year *. influence fourth quarter’s, 

previously. At halfway profit was e ompa ^ y nas cl0se s 13 ™ 8 - due to tite continuing progress of A r.nm merit ings— pre-tax profits in the. 

up from £0.63 m. to £L05m. ft comment The Famous Grouse, say the wunnvm. half may register a rate qf j 

Directnrs «sav advertisine j whhhwu directors. In ttie home trade The “Famous Grouse” bas put similar to the first half anc 

revenue advanced strongly for the Pre-levy profits have continued sales in the calendar year 1977 Highland Distilleries ahead again, the full year’s results just 

irvcime nuvoiu.ru auviigw hnnupne -> t CmHich TV uiih - _i , j j urk:u _ .l. m i„^i lfan 


BhVn> nr tntaT iTv rewmie in th« ,n S revenue has been increasing • * — ‘ 

Tv «v apace, and the overall gain of 30 . 

refereed Cadbury Schweppes U.S.$90m. loan 

company increased advertising closing months because the time „ .. ^ ... a 

rates. scale of its rate card increase is THE DIRECTOR^ of Cadbury. National Bank, and Manufacturers the spending power oi-tne 

Programme expenditure in 1977 out of step with its contempor- Schweppes announce that the Hanover Trust Company. The is likely to increase. Tnci 
advanced 31 per cent with local aries. This year a 20 per cent, group has signed a ?US90m. loan is repayable by instalments the Board confidently pk 
programme production receiving rate Increase (effective from the (£47m.) 10-year loan agreement between 1983 and 1988. that the demand reducPjr- 

60 per cent, more money. Another end of February) should make with a syndicate of British and temporary, he says. ■ *1 

large increase is planned for 1978. quite an impact when advertising American banks. it* ■ Mr. Hibbert forecasts m- 

, Directors say the extra funds rime is nearly fully sold. Last year The loan will be partly used to KrillSIl group’s operations , outturn*.- . 

were accompanied by additional there was only one price increase, finance the proposed acquisition _ engaged in wonted spnmjp\n 

staff and new technical equipment, that was 10 per cenL in March, of Peter Pan], tbe U.S. confec- jV/Tnhilir p * ay a more uoP ort *° t £ 

1911 1976 So even though the company is tionery company, for &58.6m. and Iv producing higher proms in 

spending fairly heavily on new will also repay medium-term mg years. . 

— "juHRuflm programmes profits are set Tor currency borrowings or S22.5m. S6GS HSG These companies. _ whlcti 

Arfvertlsfiw — 1 S.yo.on ll.fl6Z.7i9 further srowth. Meantime over- *■» will nmcMa Iren.. ■ duce a wide range of yarns 


British 

Mohair 


the Board confidently pk 
that the demand reduBPjfj: ■ % 
temporary, he says. •• **l (J | ; ■ | 

Mr. Hibbert forecasts ft- f * _ l i J S 
group's operations outturn 1 1 * 
engaged in worsted 
play a more importwit n 1 Jij 


producing higher profits in 
mg y€3rs> 

— —IsSfmSiBita P r °S ra ® mes Prefitt are /set tor currency ” borrowings” oT”s22r5m. S6GS HSG These companies,^ which 

further growth. Meantime over- And it will provide additional „ . , „ , . duce a wide range of yarns 

Trading pmfii ”"i; 2 Jinsn seas programraes sales iare prradu- WO rkln? capital for Cadbury 19 S°S? British 6 ^hair U SDl^ra» f^tJSSvonbShmed’sS^i 

Excbetmer levr ssr.7ST 1.277.1H8 ally increasing though they are Schweppe's operations. 1978 °* . L last year contributed 3a pet 

Front Wore tax xnam 1AD5.V3 stilJ small, and the company has ThesvndicatP for th«» loan has are ejc P ecl ^ lo 3ho ’? an improve- 0 f profits. . 

5“ nofll gf-s now moved into ibe black with ^ S3 by fSwort n } ei ! t on 1977 ’ T- W. Hibbert, Mr. Hibbert points ! out^ 

tm - nxZ cash of £220.000, having spent Benson “d^Siuel Mont^S and chatra ? n ' ^ ,n hw review w,th quantity of mohair P*glW*. 

Prer. di»s 1.372 1JT2 heavily on new studios and equip- c . th banks taking Dart ac ® oi y^- . remained stttic, so ttiat wt 

Oni. diva. 123.010 u»«2 ment during the last few years. i uJ* r«v inSinn.1 it would appear prospects increase in demand the high 

living TO.38 MOJtes ^ shares ° took a 0 p tumble to SSnSdKS, SSnSS* KS for all 1978 are encouraging he is likely to remain. 

In the year land and property 6 ip— which seems rather harsh— SfiSalrf S w *’ Tbere "J 8 that 'the In the year net umrenj 

values were revised on an existing where the p/e is 45 and the yield SKfeS European market in textiles is of the group 

use basis and following the in- is 6 per cenL and International B anka. Midland tending to unprove. Last year's £6.9m. to £8.G4nL, with bank 

’ 6 Bank, Klemwort Benson, Samuel profit of £2.4lm. (£20m.) would drafts reduced from £25* 

Montagu, the Chase Manhattan have been higher but for. a down- £2 53m., . creditors down 
TJ llK0 4 f Anci i?A Bank NA Chemical Bank. Ciu- turn in European sales. £l-09m. to fl^m^and st« 

I |12S Mlirsi IODS dLU.yin. Guaranty The signs that indicate an im- from £8.08m. to fltt. ■ 

J. J.UAOL 111 Trust Company of New York, provemem are the renewal of the Meeting. Bradford. Aprfl 

. ... Bankers Trust Company, Crocker Multi-Fibre Agreement and that noon. 

AFTER RISING from £560504 to acre site from Warrington 

£599.404 in the first half, pre-tax Borough Council. Ravenseft has • - _ • 

profit* of Charles Hurst finished been developing a 300.000 square A rh T ri/»xr £ ■ Am 

1977 ahead from IM1.095 io foot covered shoppine centre on UOWHIliril 3,1 ASD & JL3CV 10 £i.4ul* 

£962.462 on turnover of £45 53m. the land since 1973. and will 

“5S 1- 'SSS?' £604579 on” 1 tile Mhem^^wWch r i s ' n dC| 5 fir ? ESPITE M increase in turnover cent.’ Convertible Unsecured Loan wood dyes are ciBWjeJ 
*hWi to e |?t- in ,MI ,S f ° f from £23 99ni. to £24.6m. pre-tax stock 19S9-94. at over £6m. . per annum. 


remained static, so that wi 


MONEY MARKET 


Large assistance 


Bank of England Minimum 
Lending Rate of S{ per cent, 
(since Jnnusvy *. 'S78I 
Day-to-day credit was in short 
supply in the London money 
market yesterday. and the 
authorities gave assistance by 
buying a large amount of 
Treasury bills from the discount 
houses. 


i Sterling 

.tin" 3 ’ Cmilinle 

WTO »l lIl-lKWlLI 

flvwnlf'lit 

2 days notice.., — 

7 day* ««r , — 

T dayi nutice— — 

One nu.<m I 6 -,V-fila 

Two nnintli’«:.. Gifc-63fl 
Tlireo HMD tbi. & 4 4 - 6 &s 
6 >l.< nioDtho-- 7 i 4 - 7 |' 0 - 
XLac- m-iarlid.. 7*4-7,* 

Uqh y«r 8i(<-770 

TveyaM — 


Banks brought forward sub- 
stantial surplus balances. Govern- 
ment disbursements exceeded 
revenue payments to the Ex- 
chequer. and the market was also 
helped by a very slight fall in 
the note circulation. These were 
outweighed by a very substantial 
net take-up or Treasury bills. 

Discount houses paid 5 $-6 per 


cent for secured call loans in the 
early part, and closing balances 
were taken at 2-5 per cent. 

In the interbank market over- 
night loans opened at 5J-6 per 
cenL, and touched 6J-6* per cent, 
before falling to 2-3 per cent, at 
the dose. 

Rates in the table below are 
nominal In some cases. 


use basis, and following the in- is 6 per cenL 

Chas. Hurst tops £0.9m. 


Downturn at Ash & Lacy to £1.4m. 


luniteiit 

Loud 

.lutliorii.l 

iIiVtIH* 

io«i \nn..| 
i(e"**ttBiiie ; 
Inmil* j 

Flnsooe 

Boure 

Ueiwaln 

Com pur | 
Uefnoito 1 

£JiBWuni 

msrfcef 

d«pi4it 

2 6ia 

— 

6 U 

_ [ 

“ 

630 

&5S* 

6 -6U 

6 it-6£a 




6 Sa 

Si* -6 

6 M-6,' U - 

6>r63j 

6 as -6 

6 !j 

688 

57 S 


— 

6*4-656 

65* 


6 -6 i b 


63» 

67b^I* 

7 

7 


74b7Ie 

7U-738 


7Sa 



7*i - 1u 

— 

» J a-74, 

3U 





Sis-au 

O-BU 

8 io-a 

85a 

— 

— 

1 - 

BJ 0 

— 

— 

— 

■ 


(£404511) earnings are shown to completion late in 198L 
be up from 1357p to i6.o'P per 
25p share and the dividend is 

SSEVSE, Ifil p. to S96p ntt E & O property 

The Belfast-based group has p. _ . 

interests in the sale, repair and OTT^nOni 111 
distribution of cars and com- vuouuui 1U 


mercial vehicles, etc. 

L & G buys 
shopping 
centre lease 


liquidation 

English and Overseas Invest- * 5 - 8S ® p ^ total 
ments announces that its wholly 
owned subsidiary International Saius 
Securities has been placed in 
voluntary liquidation. This action {££££ 
has been taken owing to the in- t«* 
ability of the Board of English Fxrra ordinary cr 


profits of the Ash and Lacy group 
of metal stockholders and 
perforators, etc, fell from £1.79m_ 
to £1.4m. in 1977 with £605,000, 
against £754.000, coming in the 
first half. Full year earnings are 
shown at 155p per 25p share 
compared with 21.4p. 


. . ■ Formglas the " number two 

£2m. deficit ^vSde bas been 

. • ways of diversifying m jo* 

at lltashur attracted towrf? 

*rta b um finishes as a, logireiro"^ 1 

A loss of aim, in India com- to its brand leading ; £ - v 

pared witii £o.69m. left Tltagfaur adhesives. . 


The final dividend is 3.6343p net Jute Factory with a pre-tax deficit 
for a maximum permitted 6.6343p of £2.01m., against £058m. for the 
(5.9S6p) total. year to June 30, 1977 .on turn- 

1W7 1078 over of. £22.78m. (£2254m.). 


BOARD MEETIN6 


over of £22.78m. (£2254m.). . fomwhis cmaianiw hi«. 

ii&n 23*bbo The loss per. £1 share is shown It Board 

» “ at 1425p (42.1p) and again there 

265 2B2 are no dividends. The last *1*^. are t*P 


dividends. The 


deads. OMctal weins® 


- I - 


Legal and General Assurance and Overseas to find a purchaser R ?ij5£* • . ■ • • sra „ 

UP huiiflM hcao A laatfhnlri Af f hr th a fi/imimnu nrtH tham nnm a \ . rCl " 1 011 BWK IP89C OH ffec- 


Ordinary paynj»t was 9p. gross 2^ wbetber 

%£ 91 § for 1970-71. Pre fere-nee dividends . or 


Local audwtibw and fl nance homes seven dan 1 notice others soven days’ fixed. Long-term local authority mortgage rate 
nominally three years IBf-lOf per cenL: four years lM-104 per cent.; five years Ll-lli per cent. $ Bank bill rales in tabic are 
buying rales fw prune paper. Buying rws for foor-momfi bank Mite es-si per cent.: foor-oionth nude bills 7J per can. 

Approximate selllnR rates for anc-monta Treasury bilb 5l-SU]6 per cent.; r«p uumtb 539ys par cent.; and tsree-monih 
Bi 32 Per cent. Apprndtnate selUns rale lor one-month bank, bills 61 15 per cent.: two-month W per cent-: and three-moms 
6|-6i7j3 per cenL OnB-monih trade bub EMI per cent.: two-monlb fll per cent,; and also ftuv-month «-7 pot eem. 

FlnsucB Home Base Bates /pnbiwflefl by ibe Finance Houses AssodMUutn 7 per cent, from April 1. ires. CJrartis Bank 
Deposit Rales <R>r small sores at seven days' notice) 3 per cent. Oenrins Bank Rates for tending 6k per cent. Treasury 
Bills: Average tender rales of discount 5.98G2 per cent. n— - I,, ". | gi 


ess were paid to end 1972. -- 

has bought the h^ leasehold of ftr the comply and there now ho w™ pp 0 n, , eiM. , DM inf. eMi^atS 1 EVO-STIfK RIIY^ " . 

the £lim. Golden Square shopping being no further use for a on disposal or quoted invesmi.-na 133.000 lVUto 1 1L.1V DL 13 inttri««--wniwj stores. w 
centre in Warrington from Raven- property dealing company within ,n, i> lc« iu tfrt.ww in.B00i. C77D!V(G7 iC , P! 2! 

seft Properties, the development the English and Overaeas group. MflTHD rLlRJ'lULAS Rn*i*-Arotey««i-^ 

subsidiary of Land Securities In- The full amount of the Invest- nMlIvIvil vu IrfltJ I UK Erode Holdings announces that cape • fdlad rkB. , 1 gg* 

vestment Trust. ment in International Securities A total of 15G7.950 Ordinary It fcs to acquire Furniglas, tbe - grecubsafc- MfwJ : 

Legal and General’s £810m. and the amount owing by that shares in Kenning Motor Group Hatfield-based polyurethane and ; n S lw Land. 

Pensions Management Fund now company to the group have been have been issued pursuant to the wood dye manufacturer. savoy HoteL Warts 

holds a long leasehold on the 85 written off in previous years. conversion of £1,307,565 of 8 per Retail sales of varnishes and - 


3SSbflJ« -an, «-»fl 

year's tftnMaWe.^ 

cffanagSM 

?ats«3ES\i! 






57 -w 

* to f 

'ess 

£°*!>t ; 

W. J C ""■• i'.\ \. 

t S : fa. 





MINING NEWS 


paying £5. 4m. for 


Australian alumina venture 
lures Billiton 


Pakistan seeks help 
for copper venture 


BY ANDREW TAYLOR 
iS^rj^ 8 .jjj* 8?»wiug British Baca! with 


BY PAUL CHEESERIGHT 




the public 


granted to the SATOOm. (1420.5m.) 


Q IllTtll IIS) V PIlTlll*A BACKED .BY A Pakistan Govern- trust earmarked the pyrites in the 

4A J M 1 1 B ■ mi Y V'JLH-WJL \s ment decision in principle to deposit for the production of sul- 

develop ’ t he Saindak copper phuric acid at the rate of 145,000 
deposit in Baluchistan at a cost tonnes a year. This part of the 
. or SUOrn. (£112311.). the state- plan is geared to reducing Paki- 

lll owned Resource - Development Stan’s import bill and building up 

JmX Corporation has started making the use of local resources in 

contacts with International mining domestic fertiliser production, 

groups in Europe, Japan and the At present metallurgical tests 
U.S. are continuing and further results 

The KDC has also started dis- are expected next month, 
cussloos with financial institutions Seltrust thinks that the produc- 

priority for the company as the Asian Development Bank lion of steel billets from mag- 

A further Increase in world another alumina project in ^4 the Islamic Development netite and pyrites concentrates is 


•-* . «w:j MWt eatpen- distances’ than the - . ‘ high-speed 

■ . Csnf ttj 3 * Mr*Rr2J*w tD £5 ® 0tt .- since “Odems ■ which \Sacal already 
S,*}Sf t T i Ha S 5 S t, ^ the ?retip's manufacture through Milgo. 

L : *.- « <,-.>4^ fi* programme VadJe. -which in the last balance 

toat country In sheet showed net assets of 


1 ’ over shorter has ruled that Alwest alumina project in Western uranium prices has been indicated County Limerick where a new Bank with a view to negotiating .technically feasible, but feels that 

the.' high-speed w ??S * Se« ir "«« an* Australia with the disclosure by the Canadian ■Government's feeiUW k toeing buDt in ccmjunc- loaDSL further test work is necessary to 

*Racal already which recently yesterday by a Shell Australia approval of S45A2 per pound of 11011 among others. Although there is no clear sunport the assumption. 


uf > a&L November; 1976.. 

Hfee'Sr as ’*28fc ' Tbe deal is t< 


to be financed 


range m systems of transc 

1 L : »* u';.: ‘ hi n * * * da H over .pubnc telephone 

.-‘. ;? ftrr s , l «t|,.used for . computers and 
ire c?"-. C "b applications.- ■ The ’ Calif 
*■'. i.-05^ “fawny win be renamed 

*<-= ’ *«?. of^fcVadiclnc. • . 


’■r 3 . aeo ranfl nor rent nf th»» thnn oeiween tne mining oi oauxuc B riee of S43 35 1 

national. The year, while net «■*.. increased f«„ 0 H m “on ore and aluminium metal p * 01 

is extending tTsxXm. fa the SEfcB year, to ^ ued share WP^). production Annpuncmg t 

le UA— will April 30. 1077. tberi$apuiy earned . Aschbeim and Zug are wholly- n( „ a PPf oval *.* r 

upV product pre-tax profits of £4*525 on sales owned subsidiaries of W and A Dr I?Jlt fa^f2tcrn SralS has P I“' ^ 

transmitting of £4.8m. Vadlc saW that Its sales hwestmem Corporation of. South ESfdlaSiKedSr eteht ?2« ft Canadian ai 

phone lines; bad tripled In toe past- five years. Africa. . Sc Uemngcr also has S/lSTS.iSi F" 6 * «P ta,n * d 


acquired 750,000 shares in London {spokesman that Billiton, the uraXr, oxide for Rio /UW* Indication at this stage about Supposing an international 

MdUverpwl had beim acting in Royfll shell minerals u^ 1 , to RftTnVTVHP which company might become copper pnce of 80 cents a lb, some 

concert with clients of theli s (o take a 20 per ccnu stake in J ,!" KUUi>fl>Ur iavolved in toe project, the RDC 20 cente higher toan rerant mar- 

a new feasibility study. J £S2i ?* Mr. L. W. Slade. Western tbjnWng .in tends of a joint *«t levels and internal PAutml 

Alumina is a half-vay sla"e N ^!fr Exa«ki|e Corporation Australia’s new Agent General In veoturo. The rupee element of Pricesof$<0 a tonne for sulphuric 

between the* mininc of bauStc quotation in the US. gave a spot London, has taken over from his ^ flnanring would be backed by gM and ^0 a loirne for steel 

re nd SU mS pn« of S43J5 per pound. predecessor. Mr. James Richards, Government of Pakistan, b| U^ts. Sritrusts stiidy calculates 

ajumin um mctai Annpunemg the Government’s following the completion ■ of the w j,j»p foreign exchange and tech- an avera K e annual revenue for 

production. approval yesterday, Mr. George latter's three-year term. Mr. nolSy wouW c^e from fae Saindilt of SSOrn. (B2m.) ^ year. 

The prospect of a new alumina Albino, president of Rio Altom. Slade, who has spent ten years nr ;vafc sector The tone of the study suggests 


that Rio Aleom official representative in Japan, wiSto lkwS deposit is being viewed less fa 

» supply the TVA Mys that he will *» ®ore wm-’JuSJests-Onf there will be no terms of its i mm dilate commercial 


-' (and the offer to other shareholders. 


The Shell spokesman said he 
understood that Billiton’s 


•-K- . - ■ largest and 

v-, •; " P:-p it J ‘e, market for - 

e o; — the group 


isy expansion 
This Includes 


» A in the CRy fn M76 that much of option to purchase ' (and the offer to other shareholders. The Shell spokesman said he a contract from Angto American following the framework estab- . ... v _ T1T>Tirvi ., 

Sols. ?t the group’s future, growth would SecutlvK to sSftob minority Acshhelm and 2 ub aeoulreri its underfrt0 °d toat BIHIton’H the Western Australian Mines ,T ? ^V 111 Af ri“ for des, ® a - en r lisbed in a_ study prepared by AMAX IN NIPPON 
come from the tf-sShTworW? from ^ shaS? for VwSSL ’LS Partners in the study would be Minister. It had been the hope S ineenn g and management work SeltTOrt Engineering, a sub- rnnnrD racA-T 

largest and - most woWatirared ^ rioHob^i? raised will be 2 ;P ^ Reynolds Metals of the U.S. with of the state Government that con- °" ujnniwn plant extensions at pjdiary of Selection Trust of COPPER DEAL 

for -eleSonrSSSS at?orS l044 faS^miM^ 2 ♦ ° pUonS WIUCh Jt had 35 per cent.. Anaconda, the U.S. structlon would start this year ^ .President Brand mine. The London. The study was com- A major of the Amax 

r — the group -hiiaSBktatf^! S jSBl °“ 8 , cooper group which is now an and finish in 1981. Portion of the rapital expenditure missioned by the UN. and the share !3 copper 1 Bonrantoate 

c-r ^f^^husy expansion : programme. year- after-tax profits — on the A f ° 3 7 na . 1 offer 21p Is Atlantic Richfield subsidiary, wifh Production was originally en- l ( ri 038 6(1 15 about R 25™ i Dutch Government gave financial auction from the Anamax Twin 
Includes the purchase of same basis as theotecutlyes have f*?j Cted l? *i e t0 ^are- 2o per cenu Kobe Steel nf Japan visaged at between o^m. and lm. v«D^7nu. aid. Buttes mining complex near 

;-. J ^ » the outstanding shares fri the taken ud toeir minority stake. holders shortly. Directors of with /-S pcr cent., and EHP and tonnes n year, but presumably * . * * .. Seltrust worked out a prodne- Tucson in Arizona, which is 

Jn *-VMUgo Corporation (data comma- - V London and Liverpool have News Lid. with the remaining 12.o this expectation could be changed „ The French group. Pechmey tlon plan based on the southern jointly owned with Anaconda, is 

’ nieations) for £3Cm last year and advised shareholders to take no per cent, between them. by a new feasibility study. Ugine Knhlnuum is disposing of deposit, one of three at Saindak. to be sold to Japan's Nippon 

, the acquisition of Dana (electronic PANEL ORDERS FULL aotI . on until they have bad oppor- . = alrrmment or 11 15 not c,ear 31 tois stage toe greater part of its stake m The plan w-as based on open-pit Mtaing. Last year. Twin Buttes 

YTAOi! t *sting equipment) for 83m. last RTn FOR ¥ ONDON lumty to study any offer. The ^hareholdfa"'! brouRhf about by when the stlul y will be com- §2ri e i® Didustrlelfe des Mines de ore reserves of 7oJm. tonnes, produced 167,988 tons of copper 

J *v4fl October; In addition tS^roS ? . tr usl’s shares last night dosed at ffi wlthtoJkl^m ll» nSftS ° leted but n 15 like,y 10 be within r ° BCS ^ SSl 8 radin « 0426 P" cenL “PW concentrates. 

has set ur> two US. comnanies on- ^ TRUST 21 2 p— requoted after having been { flSt j u i v of Alcoa of Australia raon tos rather than years. The « rn - to toe State-owned Sotaete with a cut-off grade of 0.25 per The agreement calls for ship- 

its Its wtt, BaS Redac (compter TfakMivdripanel has suspended at lflp last Thursday, protect has heeif^uSed* fact 0131 EJ,,i ton and Anaconda Generate des Slat feres Nncteaires, There are also elements of ments to begin in 1979, subject 

r.*i ^taide3ldddS)and^I AhSSeS which Jlon» bvBHPandHe^Ud an only to a study "bose ***** * now *** “fa- gold and molybdenum. to various govern mental approvals 

^oe-S ^ toigh technology safety helmets). kSSta have'l^^ctfag fn LETRASET while Reynolds has been a long- ?"Aj5Si “ .Sff?! f.w. ^ An atuiuPl production of lLoOO and fixial shipping arrangemeuts. 


M e .? ,“‘ t ’ r, w ^ design) and Re cal Airstreera instructed 

v,“ Z.. '■ or - s; Mr a a|. ^ thigh technology safety helmets). It dbems^ 

n ,„L’-. as well as expanding its marketing eoneert 1 


" LETRASET Sdinc nartner"“ S U ^ n “ ,0nK ' indicates a degree' of caution The opening of toe Sydney gold 'tonnWoF blis'ter copper Is envls- MrT Kar! Bcfgmin, preiideiit of 

iwi s fT Responding to week-end s ‘ a R pann . about the future of Alwest. futures market has been con- aged, and it is thought there would Amax Copper, said that the sale 

A xm "^mariSfartiiirln g c° ram ent. Letraset International The possibility of a new Alwest Anaconda first expressed firmed for April 19. The con- he no trouble in marketing this would have no impact on the com- 

aowfl zuawutfciuruib states that it has received no partnership emerging at about interest in Alwest last year, but tract will be for 50 fine troy quantity. pany’s copper refining operations 

approach that may lead to an this time wns foreshadowed in a spokesman explained yesterday ounces of refined 99.5 per cent Aiming at using to the full all at Carteret, New Jersey, which 

• £» j a ■». ’ , offer being made for the company. January by Mr. .Andrew Mensaros, that Alwest did not have the same gold. the resources of the deposit. Set- are running at full capacity. 


shar e ’dealings — 


while Reynolds 


iu £2 *’". a ! la " ail k *»• 
* ?-• ' A< sut m,. 


5 StanChart to 21ft stake 
s in Australian Financier 


provide South African 


manufacturing 


in Australian Financier 

• i'- -- ts-co tWi S ^ Th® Stirndard Chartered Bank Like many other ftpance com- 
.- :(J /' has been granted approval to in- pa^es. Mutual ««• .adversely 
*«:i tv r A-r’a in crease its stake in Austialian affected by the aOBaive of the 
a * finance • company, Mutual property marietta M The com- 
Comment Acceptance from its present 34.5 pmy has terieed into Tin - 

uiw ■» u , <*fa- to 5L98 per cent. The productive ‘reaf -ittate' ^investments. 


comment Acceptance from its present 34^ p^ay has tecteed in to Tin - 

ui;\ jnij I,u u , p** cefa- to 5L98 per cent. The srodnctiro'real'ai^^UfutBienis, 

r *f« 10 2 increase wffl be achieved through Stt'whlcft SA2ka.ls M'rosldenlial 
- t, - t toe issue to Standard Chartered 

, wwxitot 12m diares fa Mutual The Government h^is advised 


w- 


Philips’ j 
years ago. 


. *' . 8® t Chartered fa London xaid yester- ‘Tthilips Industries ^Holdings— 

► -* **- »i» a day that the deal aro« from local offshoot of, the Dutch 

■' cjjf Mutual Acceptance*? obvious need efoctrfcal woM^hfflds 1A28 per 
^ > v r.*.r; 132 E for a capital injection. But it had ^ 0 £ MutaaL^Aeceptance’s 

'"*• -r.l irveiTcsn the added attraction <rf offermg w *• This MOM from the 

: " c - - citiffijes controllihg stake m toe ^ compim^purchiafag 

: ' » :r 5£-35.^< ^ This was in line Vlth the bM-jj , finance ^tereste six 

s.^- .• iivj i normal corporate poiiqr. ago. . ... . 

' -• • tri-j?!!' Mutuid Acceptance rays • thr^^PhflJps has~-atera4^agreed to 

- • - • ivn 2 share bale wiM increase thft.cqm- the. Jsnte - to StanctiiifetSartered, 

nany’s borroudng capari^ by wHi flL wffl water group's 


> ti’ss pany’s ’ borroudng capacity by wWteSt,wflJ watet group s 
- • "• .- r.v. a! more than SATOm. It should ateo IhoMdgiiffown to“lQA»,pftf. cent 
■’ .-•.r-'ra": ; place Mutual aft a more compafh..: 1 ;An ;i «5teaor(Iiiw»KmBpt!qig will 

*-■ - -- r. e .: «r :i« tive position fa its borcowfags aa. be held, to seek the.aiHmrral of 

r J r. i the money market and its deal-' remafafag shareholders? Mdfahant 

-- . - r.-et i tings vrith Instkutibinal support e rs eframke Capei > Court Cozposaitlon 
r- •» ir- .n -ren® and investors. The Boded bidieves* fattc been retafaedl-on behalf lof 
• '■ ;".T^:'*thftt;in->tkM%it)Villllmnate> timTtbwn^Aoril90hol5terp4b«Biaab]irii 

: . v- ..-jii: combany w -redueff its overtJfrvfiffiOief ^83^ ^ ceuft&HSsife price 



B 




Law 


thot;in->tkM%it )vnllbanate> to^tftwnrfoorttjs^ holder 3J*BKflb]isb 
company ttf -rtduwf its oventRfvimbef toe SS ceuftsjrtSMie price 
•r;:sld fc money costs and consottdate flhe -^w genpg abong* 'toe current 
U:;hase f or a return to a deslrabre - market . price— b*«air and reason- 
growth pattern.: ‘ able/ 1 •- . -Jr ■ 


Life Assurance Society Limited 

Statement by the Chairman, MrPDJ HCox. 


I Distilled T & N takescoii^ol of 
Belgian brakes group 


be current ■ V " ' 

and reason- Directors 

. 1 succeeded Sir John Witt as Chairman on 1 st May 1 977-Umler h3s leadership for thirteen years the 
Society prospered greatly. 1 am indeed fortunate that he has agreed to remain on the Board and I am glad to 
if have this opportunity of acknowledging his outstanding contribution to the Society. 

PE I have pleasure in recording that in June 1 977 Sir Charles Troughton received the honour of a knighthood. 

Unfortunately. Sir Charles felt obliged to resign from the Board attheend of December owing to his other . 
commitments. We bothjoined the Board in December 1965 and I know well how valuable his services to the 
. Society have been. He is greatly missed. 


, - — g ■ ■ w ■ n t JwM O rfM gl VUlimilllilOlllb, VVC UUUI IUIUSU JJJC DU0IU III POLaHIUDi I flliu | lUIUW UHDH I IUVV VdiUOUID Mi LU Uic 

r'—;.-. Belgian pT&KC<S gTOUp • Society have been. He is greatly missed. 

\' K " -• TURNER ■ AND NEWAlil ha^ tbit, attoough Bureau Technique New Business 

. -i purchased' a controlling- stake.-ta ^ been : making profits “ the NetnewannualpremiumswrittBnathomBandoverseasbytheSociety(exdudingEqurtylkLaw(Managed 

-'^Bureau Technique faternatrona^’returo f On . capitalemplpyea was Funds) Limited) Were £1 4.2m {£1 4.1 m in 1 976) ; in addition new single premiums of£1 5.2m ( £1 1 .Om in 


: ' / > The holding of Turndr ' and NewaJj Jias increased its stake The whole of the reduction in thB new sums assured is accounted for by individual ordinary business in thB 

.V ■’ ’I'--.’ , tfjwwall lp Bi»eau TecteUgim as Socfate -Anonynte Francaise du United Kingdom. New annual premiumsfor such business were £5.0m, 9% down on 1976. and new sums 

: . ■ honn inr-rea^n from 31 9 ner cent. . .uki.k mnn., ..A - .• . ... ..... : . .... 


normally give an undertaking; ftat Both Turner and Newall and | as In 1 976, with sums assured 3% higher at £72m. 


2m, the same 


' , explained Turner and Newall vice, distribution know-how and Dutch market 

. -i-afifr. yesterday." ; ‘ plans --for market extension, and Ounelatively small operation in the Federal Republic of Germany continues to make progress, but slowly, 

in its. fast accounts for 1977 .Societe Anonyme, which Is JnviBwofthesmalUncreas8innBwbusinessin1S77intheUnitedKingdommarketa5awhole.and 


is I Jn view of the small increase in nBw business in 1 977 in the United Kingdom market as a whole, and 


. ; ■ • i . t t mK , jjj m Iasi dOTUPw lux Ao ii .vmwvvu nuvMjmv, jji vitiw vi uiffsiriaii iiu#fDaw hi Maw i/i « winiw ivii^uum niaiMDLaaa nmwivpiHiw 

. - : • Turner and Newall reported that already well diversified fa motor haring regard to the effect of the changed commission terms in tha United Kingdom, I regard the Society's 

Bureau Technique had new Business results for 1 977 as satisfactory. 

enced “another very Surope. li^ specialist technical 

I The, group said y&tenfaSs^ back up. , Premium Income 

\Ami I0M.B The total premium income, including that under Managed Fund contracts, was £90.9m(f7S.9m In 1976) 

7U11I* A ' X.Vkwm a rise ofl 596 ; £52.8mofthis was In respect of individual business in the United Kingdom and Jersey, 


back- up. 


.... . C : cf£;. 


A rs»' 


Angry response to Lon. 
Sumatra rejection 


Premium Income 

The total premium income, including that under Managed Fund contracts, was £90.9m (£7S.9m in 1 976) 
a rise ofl 5% ; £52.8m of this was in respect of individual business in the United Kingdom and Jersey, 
including £1 7.5m under policies for pension provision and £7.6m under unit-linked policies. Group 
premium income in the United Kingdom and Jersey was £27.5m. Premium income in the Netherlands was 
£1 0.4m and in the Federal Republic of G ermany £0.2m. 


; f-U-. - Tv . : .r. ; _ ' Administration 

i •. '• 1 .; McLeod -SJpef reacted' angrily adatioistrative director of Tfie total staff was reduced over the year from 1 . 788 to1,734. In the United Kingdom the reduction was 64 

- -' .,r. ’-^yesterday, to the London Sumatra _vaW Pedersen said fa foHqwing reductions totalling 87 in the preceding two years. The smaller intake of new recruits in the last few 

, , n,-,: : ®. oar ^T c ^ ectiol L fa# 3 ; revised toebidwas assure stoce _ ywrahasledtoa welcome increase Inthe general level of experience of our junior staff. 

-• ' r blI j «*-We -are tiwcompany shares, which were Expenses of management, other than commission, rose from £15^m in 1976 to £1 6.6m. This is a smaller 

l .u^jjetoxraaacfietiie rejection- held fa a trust, fund- increase the n in recent years, but this Is an important matter which continues to engage the attention of the 

s - "if by the Beard of London Sumara The latest ' bid follows the Society. 

' •" T. •. of an offer of 150p per share with purchase of another m , 

- V.'-I-Lthe recommendation by toe Board Thfafel? gfass twodticer Glasal strop ASS0tS , L . .. . . , 

.. . of' Harcros pT an “offer' -‘trom fostDrawnber, and marks WWi substantial risesm Stock Exchange prices of both fixed interest and equitiesand a rise in the latter part 

.Harrisons .arid - Cao sfield which another attempt by FilJcington to of fiieyearin property values, the Society’® investments (excluding those of the Managed Funds company) 
apparently valued JHawaw bnlkl. up las markets fa Scandi- appreciated in the year by £1 33m, and the value of the net assets now exceeds £650m. 

I: ' ' - .1UWUL' Irifae United Kingdom £44m was invested in the appropriate units for unit-linked policies; of the balance 

. L The^stetorojant reflects astonfah- finoDON TflHNSON airatabfe in die United Kingdom for investment £54jm was invested in fixed interest. £5m in equities and 

; 1 V'. ;; .. ' ' r . ujent that ■ ihe Boards of :two . TTP tow* was disinvestment of £8im in property. AHoan totalling £AJm which had been taken for overseas 

r ?v' r '• *£?*"' companies ■withlri‘'the HanisOM.-.aMAKtV V*\--pP investment was repaid during the year. In the Nelherlands£2m was invested in equities and property and 


• • .. ■_ . . l iiivcaunciiLviqoiopuiu 

. . . . 1 and Crosfield empire _have Men Engineering groHp Gordon £7m In fixed interestaecurities. 

-I • . ‘■■ :3 vjr v ? r ? ai ? er8 S 1 'JSS!5 of “* ' e Jobnsmi-Stepbeitt which is onthe -fttenat dlsinvestmentin property in the United Kingdom includes sales of £14£m and purchases of £6m. We 

>- :• • ; V--’ !' 33 w\- of Thf ,d SJ2S tr aid’ : Crosfield 55“fSS fflmoS have made some switches in our portfolio with the object of reducing our involvement in office property in 

! - T ' : ' ■'= ..j rf* croup Sms, in McLeod -SipoTs ita shares restored^ ^xo^SJe^todk toe South East. Sales of office properties have realised £1 Om, £3m more than the values placed on these . 

,- f eyes to be having Its cake and Exchange listing after it properties in last year's Balerica Shrat ;thisis mainly due to seffingjomtfywrth the lessees certain properties 

eating ft.' . . anhouncW that an offer document on which long leases had been granted somayears ago. We have also replaced farms haring sitting tenants 

The rejection of the. revised had noyr beeri Jssued: "The shares b^fgTmsfnan’agedonbahalfdftheSocletyandasubsidiary.Equity&LawtFarmManagement) Limited, was 
’ offer w locked by ’ top ffaanaai ^ 5p ^ jap. formed duringtheyaartobethetenantofourfarms. 

advis^_^to mMAfrPC PT ATM .There is a further sharp increase in the expected income from the portfolio. The investments held at 

ylfll, S*2i,3*SSff that^ ftVould be 31stDecemberl977araexpoct8dtoproduceanincomeof£5lnuhisyear.ThecomparablefiguresoneyeBr 

+ I price Of . >ptf two year; ago werefAOm and £28m. 


Idle ICJCLtrtl** V» - LUUI iiUJT WTOI I W HfcW- 

offer Is backed by thp financial xuse 5p tip 23p. 

idvisKS to London . ■>. SwnRwrs* 

Robert Fleming, who earlier went DAMAGES CLAIM 


j .. Robert Fleming, wno mow tiAifiAuca 

£ .4nl- SS S .V* 


*V all SenJrf'Jrito^ ‘flfwS Fixadlnterest 

■ P Stallation And which It dates l qurt ^* 

whiohhxveshares m badJy affected Its firsr-haH resets. Property 

— - - r J >dotet intend .to .accept tne . mystery bidder is also .. 


i . yanfl two year® were r vum anu izom. 
to® elec J^P¥ Tne following table shows in respect of the Society's total 
k Suit itwS trureated assets the percentages in three main categories both of 
atoms -with a maketvaluesatthe end «f1977and of expected income from 
■f^iwg signift- these assets in 1-978, with the corresponding figuresfor last year 
light to be (n brackets. . 


Market Value 
52% (47%) 
27% (28%) 
21% (25%) 


Expected Income 
70% (66%) ■ 
16% (19%) 
14% (15%) 




, /DANISH '- - this bis been completed— possibly 

■ ■■■'■'.■-^GLASSSIAKER - 

.. rediffusion;. ; 

*: - Pcdewen A/S, the Danish glass- Philip* Klecinuxte and Asso- 
a mfclrfng 1 ^ tymp an y . \jafad‘ . Iteustrittf on MlHjCh -9 

^ xhe takeover Is being made increased itshokimg-in Rediffu- 

■ *8*^ L ... mail - ... Ann .kx.iui Invar S 


thought to be exsunfafag the Liabilities' . 

: cturem perfimnanee of the com- With the substantial appreciation in the values of tha.Societ/s 
r . puter inrfaUatlon And its name b assets during the year the gross yield expected from the assets 
- U?- £ ? Epe £S. hasfailen to 8.1 %from 9.0%. Corresponding changes have 

’ “ mpleTed_ " p therefore bean made in the valuation basis of toe liabilities as set 

tteXt trCCR- t 


(oyer.s 
ding on 
shares— 



. 1977 

1976 


£ million 

£ million ' 

New sums assured 

778 

892 

Sums assured inforce. 

4,103 

3,728 

New annual premiums 

14.4 

1416 

Total premium income 

90.9 

78.9 

Payments to policyholders 

. 40.9 

33.3 

Group net assets (market value basis) 

709 

496 

Investment reserves ... 

75 

40 - 

Dividend— cost 

1,34 

•1.22 

per share ■ 

6. 6867 p 

6.0788p. 


out in the Actuary’s Report. The effect of these changes has been to increase the value of the liabilities 
by £91 m. 

The investment reserve now stands at £75m (£40m at the end of 1 976) and represents 1 3% of the vaiueof 
the liabilities.. 

Bonus Declaration 

As set out in the Actuary’s Report, the rate of reversionary bonus on ordinary individual life policies in the 
United Kingdomhas been increased by OJ25%to 4.00% and upwards. The bonus rate on personal retirement 
•and similar policies In the United Kingdom has been increased by 0.1 5% to 3.65% ; thisfdJfowsan increase of 
b.25%ayearago. 

The terminal bon us o n U nited Kingdom policies was in creased bom 1 0% to 1 5% in July 1 977. 

Dividend 

The netincome of the Other Business Fund, excluding appreciation of the assets amounting to £205,000, 
was £1.505,000 of which the main component isfaesharehokiers* allocation of surplus, £1,360,000 — 23% 
greater than a year previously. The change in the valuation basis has led to an increase in the allocation of 
£35.000 and the increased bonus rates to an increase of £78,000 ; excluding these two items the increase In 
the shareholders' allocation of surplus would have been 1 2%. 

The maximum dividend which can be paid in accordance with the statutory limitation on dividends is 
6. 6867 p per share, and the Directors recommend a dividend of this amount. Th9 carryforward will thereby be 
increased by £1 67,000, in additionto the appreciation ofthe assets of £205,000. 

Pensions • . 

The legislation in connection with thB new Stale Pension Scheme which is to come into force in April 1 978 is 
very complicated and will make the administration of many occupational pension schemes more difficult for 
insurers and employers alike ; neither will it prove easy for employees to understand. 

Much work in this connection has been required during the year to examine almost all ofthe pension 
schemes insured by the Society. This has involved a vast amount of work by the’Society, the employers 
concerned and their advisers. In virtually all cases employers made their decisions within the legislative 
timetable prescribed, although additional difficulties were caused by the failure ofthe Government to lift the 
pay code restrictions on introducing pr extending pension schemes until the beginning of August 1977. 

We have made considerable efforts to rationalise and simplify our business during the past year to counter ' 
the complications mentioned, and we have already had success in this. We will continue these efforts 
because we believe it is vital that schemes are readily understood by all concerned and that costs are 
co n ta ined. I n this fatter respect we wo uld stress thepartiheGovemmentcanplayby keepi ng to a minimum 
their regulatory requirements. 

This preoccupation by advisers and by tha Society with examining end recasting existing schemes 
undoubtedly had an inhibiting effect on The writing of new businessman hough premiums under the Society’s 
existing schemes continued to increase substantially because of increases in salaries and wages. 

Legislation and no Legislation 

It is pleesang that the Insurance Brokers (Registration) Bill— a Private Member’s Bill— became lawin 1877. 
The Insurance Brokers Registration Council hasnowbeen established and we wish it we!) in its endeavours. 
It is not so pleasing to observe the Government's recent attempts to enforce its non -statutory pay policy by 
means of blacklisting and the imposition of sanctions— procedures born in secret which can lead to 
injustice and abuse. Such procedures could have serious implications for companies in which the Society 
invests. 

Prospects 

In the United Kingdom we will continue our policy of seeking a broader spread of individual business with 
- the object of replacing the business riorobiaiijed owing to the changed commission terms. Over the last two 
years, ip addition to promoting an extended ra%e offfadftional contracts, we have introduced a number of • 
hew types of contract; jnpartioj {aj waWught; outl.a§t year ri’ew contracts, by both annual and single 
' pfepilums, offering linking to a variety of types of Investment. This policy has met with a substantial measure 
of success already and 1 believe that itwill bear more fruit this year. 

In the group market in the United Kingdom new business prospectsseem better than for the past few years; 
partly because of the number of schemes being startador improved for contracting-out purposes and partly 
because employers are now free to improve schemes outside the pay code. Indeed premiums under new 
schemes already secured to commenceinl 978 are larger than the total under such business written last year. 
Inihe Netheria nds we are seeking* further increase this year In the new premium income. After the initial 
development period we are now consolidating the significant position which we have established in too 
Dutch life assurance market 

Allhough toe greatly reduced rate of growth of expenses Is very welcome, we cannot relax and substantial 

efforts will continue to be necessary to ensure that expenses 

• arekeptaslowas is consistent with the standards of service 

j which we Wsh to provide. 


Staff ■ 

I end by expressing my sincere thanks to my friends and 
colleagues onthe Board forthe enthusiasm with which they 
guidethe affaire of toe Sodety- * am also grateful tothe staff, 
both at Head Office and at toe Branches; for their hard work and 
loyalty to the Socteiyindifficulttimesand particularlyforthe 
support ? have received atall levels as a new Chairman. I am 
particularly grateful to our General Manager, Mr Bums. for his 
efficiency and dedication. 


’ V- ^has an annual turnover of £9Jm.. previous holding was 5,805,9001 - 

•/ |iir,'“TaBe‘ VwtMgaaxd, the shares.---. 

. ; : • ‘ v -• • ■■ 


Copies ofthe Report and Accounts can be obtained from the Secretary, 20 Lincoln's inn Fields, , London WC2A 3ES. 





NORTH AMERICAN NEWS 


Goodyear 
sees first 


quarter 

downturn 


Kennecott joins battle with Curtiss Quebec wen 

placed to 


BY JOHN WYLES 


NEW YORK, April 3. 


AKRON. April 3. 
GOODYEAR TIRE and Rubber 



... unimpressive 

lodged its 17-man Board of Kennecott urges its share- record for distributing profits to Meanwhile Jud^e David 
directors. holders to make a judgment a* to shareholders. It points out that Winder of the Third District 

In a barbed letter to share- whether Curtiss-Wright pro- in the five years to the end of Court of Utah to-day vacated the 

— — — 711*10 I iPPPnthap lUTV PnrtiPf .Vl'pin li f tr - ■ . . . . 


full sramme “ is a mere campaign December, 1977. Curtiss- Wright's temporary order he had issued 


MrWrK Shareholders should tnowfstys SSUltSS u'SESSSkSSZ 


a 

against 


By Robert Gibbens : 

MONTREAL, April 3. 
WHILE a final decision Is un- 
likely before autumn, Quebec 
appears to be leading Ontario' 
as the location of a General 
Motors aluminium-alloy cast* 
fags plant. 

Both federal and provincial' 
Governments of Quebec and 
Ontario and Alcan Aluminium 
have confirmed that talks have 


ia>i .».«««* w. • -it-j snmp nnintori onarenuiuers auuuiu ruuyv. sujo rauytsa ueiween sazm. ana kshhi. Wrieht fmm solicitin'* nravies nr 

but there are solid indications Kennecott asked wnie pointed Kenne , oL lhat eight days bef0 rc while long-term debt has never vS £? hold in- in K-nnSot? 

of a pickup which could carry questions about cuniss-wrigni s Cu iiiss-Wri°lit announced its exceeded S3 4m. Durin° this .42® 1? "S. ,!?* . Kennecott 

throu/h lhe remainder of IKS. “55 Us chairman and period ^ptSkl dividend w« 

the chairman Mr. Charles J. PH- H^ l ^ 1 , t ! b ? m 2“ s(0 of president. Mr. T. Roland Berner paid to Curtiss Wright stock- »n ^rantthe Stlte S? Utah 

liod. Jr., told the annual meeting. Carborundum Com pan j met Kennecott's chairman. Mr. holder, no dividends were ^reSar? iniuncU^n 

Income will be well behind the Curtins-W right, j New Jersey Fraok aiijiiken and president Mr. paid at all in 1973, on either cJfiS-WHoht 3 “ 

first quarter of 1977. when the based manufacturer oF aerospace \viiij a ni Wendcl. class “A” or common stock, and 'TTf ^ 

company earned S59m. or S'- and nuclear power ‘5 Mr. Berner allegedly said then during the five-year period divi- H.j: 1 ?? hSLFHJL *££ ^°I!f —»««••-»*»««. tu«i u«ve 

trots a share on revenues of seeking the election of a list of t f, a j htJ bat j n0 specific plan for dends paid on both classes of t0 co y rt I? been held with General Motors 

■Sl.fibn.. the chairman warned. 1/ directors committed to selling selling Kennecott assets for stok a v erased approximately 25.2 a™ed with a recently enacted on the location of such a. plant 

because or the severe effects of off Carborundum and distributing distribution to shareholders. He per cent of net earnings. ;* w . which it accused Curtiss- 

the coal strike and 'the tough the proceeds to shareholders. admitted that he had no know- Kennecott said that after the Wright of violating by not notify- 

winter weather. Curtiss-Wrighfs attack is based ledge of Kennecott's future sale of Peabody Coal Company ing the state of its stock pur- 

Meanwhile thhe company 0n S77m. purchase or 9-9 per capital requirements, and that he for more than Slbn.. its directors «iase. . 

intends to adhere to a policy cent, of Kennecott slock. In its did not have enough information considered “substantial direct wnaer ruien m tavour 

of retaining majority control of shareholders' letter. Kennecott to determine the value of distribution of some of the pro- pf ngnt, sayin„ tnat tne 

all foreign subsidiaries, said Mr. claims that Curt iss-Wright did not Kennccott's components and “he ceeds. But this was rejected as Utah courtsnaa no jurisdictmn 


Pilliod. He was referrin, 

Indian Government 
reduction in the 
interest in its subsidiary 
lo 40 from 60 per cent. The 
company, he said, will look at its 
Indian offshoot with a view tn 
improving efficiency to compete 
satisfactorily against local com- 
panies. “If this fails we will 
then take another look at our 
total investment in India to see 
what course is recommended," 
Mr. Pilliod said. 

Agencies 



GAF sale to German concern 


NEW YORK. April 3. 


Southern slides 


Southern Company, 
utility concern 


GAF Corporation has changed its Princeton, New Jersey, an invest- vices and other considerations, 
mind and sold its dvestuff plant ment- ban king. concern. Questor adds that the sale will be 

and busines in Rensselaer. New However, GAF decided instead effective April 30. 

York to a West German com- to sell the plant for a slightly The division has plants in 
panv" for S23.7m in cash and higher price to BASF Wyandotte Muskeaon and Sparta, Michigan. 

_ Atiantx notes. 'file company had Corporation for 521.2m. in cash and Wausau, Wisconsin In 1977. 

P IT \ >ii originally planned to sell the and 32.5 in. note maturing io the piston rina division had ore- * 

. reports a per h . tvor .i a « liri rv 1979. 


Tough winter 
hits Marshall 
Field profits 


By John Leach 

' CHICAGO. April 3. 
MARSHALL FIELD has reported 
a 12.a per cent drop in profits 
on record sales of S662.7m. for 


cent. ft,. ffSSOTnh&.K ‘ Il “ t im '™' bu >"' 'Zff in ran. Ohio, more then S50n, 




the first two months of 197S to 


GA ^ a 1 so __ n eg 0 H a ti n^ a n Q UCJftor Corporation says it has 

agreed to sell its 


bid by Carter Hawley Hale 


S35.4ra. or 26 cents a share agreement whereby it would tT'^e'lT^Tts ‘'“Muskegon in J^ootfs^juvenMe^nd’ home repo rtec * a P roflt of S15^ra. or 


= 5Wf. “38 cents ri ;a manufacture A^us^slide prefec- ”TSS tSJSSS £%£ SSdSTZ *«■ £?& ** 

share! in the corresponding inrs and Dual 8 film projectors Cierman 0 j Ston riw , ma nufac- sell the piston ring division ® ls - lm - ffc2 - 01 P er > han 


on 


period of last year, on revenues for Interphoto Corporation, a tlirer f or $4 Sn] . because of the 

8 per cent, ahead at S466m. For camera distributor. Questor will sell the division changes” in car pistol rin 

the full year, however, the com- The com n an y announced last to Goctzewerke Friedrich Goetze design and the resulting “heavy 

pany J " “ " 

rise 


per share) 

“SIS sales of SB09.9m. in 1976. 
anticipated ^ compBQy raid that lhe 

1976 figures included non- 


in Canada, on I be scale re- 
quired for the North American 
market, and using the transfer 
direct of hot metal from an 
aluminium, smelter to the cast- 
ings plant- Alcan will only say 
talks have been held with both 
GM and Ford, which have been 
completed, and now it is. up to 
either car company to decide 
“in the light of the overall 
economics of anto manufac- 
ture.” 

However. Ontario ' Industry 
Minister, John Rhodes, says 
Quebec may well get the plant 
if GM decides to locale in 
Canada rather than one of 
three American. states^ because 
Quebec has nearly 700,000 tons 
of primary aluminium capacity 
at Arrida, . north of. Quebec 
City, Sbawlnigan and Beauftar- 
nois, near Montreal. There are 
no primary smelt ers in Ontario, 
and direct transfer of hot metal 
would probably be vital to the 
plant's economics. 

Mr. Rhodes also .says the 
Federal Department of 
Regfonal Expansion, under 
revised policies of directing 
grants more to high unemploy- 
ment areas, including Montreal, 
has made an offer of snbstan- 



a 

cent 

reports from Atlanta. 


i ur V.UI UUI A1IUII tut OIOIII. Ill me uumudac |JI iuc uiLiuuca n wuuivi uaq tue inueevua iium „ r it i i 

cash and SSm. of subordinated S2m. to be paid during the two- the sale for reduction of its debt Cenl ? P eT ® l™} 


Beker Industries loss 

THE troubled Beker Industries 
corporation has disclosed that its 


securities. Rensselaer Color is year period following closing of and expansion of its other units, 
owned by Win. Sword, of the sale for “management scr- AP-DJ 


Standard Oil confident of growth 


NEW YORK, April 3. 


year's operation of Chicago's ver- 
tical shopping mall at Water 
Tower Place. In 1976 these losses, 
including only two months opera- 
tion of Water Tower Place, were 
14 cents per share before non- 
recurring gains. 

The company president, Mr. 
Angelo Arena said the 
momentum of strong operating 
gains in retail operations during 
the first nine months of the year 


loss from continuing operations 
in 1977 totalled S3.3ni. In the 
previous year, the loss from 
continuing operations was 
SI 1.2m. reports AP-DJ front 
New York. 

foreign currency translation loss STANDARD OIL (Indiana") is the company earned Sl.Olhn. or Gulf of Mexico, enabling it to at Was reduced by severe winter 

of 31.6m. and start-up expense confident it can maintain past 36.90 a share— up 14 per cent. least maintain current domestic conditions in the fourth quarter, 

of SUm. relating to the com- ear nings growth and rate 0 f 00 the . Pre v,ou s year- 01 “JP* n ” 1 Sales in this quarter increased 

pany'c new German plant. t ,„ mp Tnhn f Capital spending in 197S will The outlook for overseas pro- Der cen t t 0 S2133m- from 

P i ^ turn * chairman Mr. Joh " total S2.3bn. compared with duciion and earnings in 1978 was si995m.. but net inwme sllpped 

Hniqt A nprri<*k dfinq Swearingen said to-day. Since si.9bn. last year, of which $U bn. bright, he declared helped by to S9 4 m rpom $i2.4m. in^the 

110151 <x uemck alps 19 go earnings have increased at will be spent on exploration and 1977 discoveries in Egypt. Spam, nrevious vear 
American Holst and De'-rick, an annual compound rate of 12 development In the U.S. com- Colombia and Trinidad. p nr t |j' e |»u 1977 year the 

the St Paul. Minnesota-based per cent. pared with STSOin. previously. The netrocbetnical business Chicago stores division showed 

engineering concern reports a Higher prices expected for oil the chairman added. remained a strong growth . araesT nercentace increase 

fall of over 40 per cent, in profit and gas in the future will help u.S. development spending industry, he added, in spite of Dr ofib, Mr Arena said. Of the 
for the first quarter of 197S to sustain growth in profits, Mr. will be concentrated in the changing from production to nJh p r divisions Frederick and 

82.8m. or 44 cents a share from Swearingen declared. “Inflation Witliston basin. North Dakota, sales limits. The comnany was Nelson had the greatest sales Der- 

Si.3m. or 91 cents for the same of costs will be a factor, but on and the Michigan basin, together convinced sunply and demand of C p n iaa e increase and Crescent 

period last year, agencies report the whole we believe higher with the Appalachians, where petrochemicals will return to c, 0 ,n? had a saiisfactorv vear 

Sales were ahead at 8116m. prices will bring our company the company recently made a balance over ihe next few years. But Halle Stores had 

against SI 12-r. Company presi- higher earnings" significant gas discovery. and the company’s size, raw di . DOintin5 , _ ult£ oar ii v dut- 

dent Mr. Robert P. Fox blames The company's current objee- Mr. George V. Myers, presi- materia) sunply and new produc- tQ wi *. er ’ H J 

the downturn on a “ continuation tives are a 13 to 15 per cent dent, said the company expects tion facilities will enable it to 

of the heavy pricing pressure” return on equity and the pay- by 1979 to add 25.000 barrels of capitalise on long-term growth 

experienced during the second ment of 35 to 40 per cent, of oil and 350m. cu. ft. of gas to its in chemicals. 


mid-sized models for the 
Canadian and north-east U.K. 
markets, and -is setting up its 
main Canadian bus assembly 
plant also near Montreal. 
Some sources claimed the 
Province^ recent 51 00m. bus 
order win awarded 10 GM 
Canada against the competi- 
tion ui Bombard ier-MLVV using 
American Motors' designs 
because the Government 
wanted, the castings plant 

Some reports have said the 
castings plant would make 
alnmlHium-alloy manifolds and 

possibly cylinder heads and 
even engine blocks, 1 hough 
sheet products are nnlikeiy. 
The use of greater amounts of 
aluminium In cars, however, 
is ..now undergoing -new; 
scrutiny In the U.S. auto" 
industry because of high costs 
against some newer steels. 

Cost or (he proposed plant 
in Canada has been unofficially 
estimated at about $400m_ and 
federal and provincial grants 
to the company would be up 
to 3180m. 


State and banks ter 
provide $117m. 
in KSH rescue plai 


.BY CHARLES BATCHELOR 


. AMSTERDAM, Apt.' • ' 

THE DUTCH State and a group starch subsidiary will dew • ' 
of banks have agreed to provide whether .the company^ ' 


credits worth Fls2252m. (3117m) made profitable over tbr 
to the troubled starch and food- two to three years. -The rV ' 
stuffs group. Royal Scholten- ing interest in this suin' - 
Honig (KSH). would be taken over by »t ' 

This will enable the company companies anxious to aco 
to. keep operating until the stake in KSH. - . 

break-up of its various divisions It ^ now Dfi30tiartn - ; > 
can be arranged. The State also two lareest n^h WiL • 
proposes taking a 40-49 per cent- sot « ^ntrale 
holding in one of KSH’s starch- sulk’eruhie as well^c^hl 
making subsidiaries; Verenigde Rov^ 

ZetmeelbedrUven of Koog aao * ota £ 

KSITs ' bankers will provide Operations. 8316 ° f - Bar,s ^ 
FIs. 120m. in credits, while Goy-. p - 

ernment aid will be FlsJ.32m.'— The Minister of Agrir” 
including a FK34m. credit which Mr. Fons van de Stee ho. -'- 
was announced last . month. The firm offers from these copv- 
Govcromeni credit is aimed, at to. be made some lime rhj - - 
covering the company’s " short- He is due to present h - “ 
term operating losses and is not posals to save KSH to t! 
meant to pay off long-term credi- manent parliamentary c- . 
tore. tees of Economic' Affai , , 

This is to prevent the Slate Agriculture on Thursda;' ; 
aid going straight to the banks wants the rescue plan b ■*" -. 
and other creditors, to be completed by ear' 

The direct State holding in the month. ' 


^ bright a 


EOE sets trading hours; 


BY OUR OWN CORRESPONDENT AMSTERDAM, Ap> 


THE EUROPEAN Options Ex- lap at. the end of the 
change (EOE) will limit trading U.S. trading hours. V- 
this week to a daily two-hour The exchange annoum 
period only, and trading hours expiry . months and . 
next week will depend on the prices for the nine option 
volume of business in the first in which trading sta 
few davs. On April 4. th« official morrow. The expiry inol 
opening day of the EOE, there the -three British stoti 
will' he no trading. GEC and BP— are Fr 

■ w ? e n lh . e ^ h K nge is T rat ' SSinfSHf 'i,i“ m”fcs 

mg fuUy lt.wiH be open for a ta November nmnth& J 
six-hour trading session between Espirv months for th 
IOJSO a.m. and 4.30 p.m. These Dutch and three U^S. stau 
opening hours have been chosen be January. April. Jit” 
to allow the EOE to-Function in October. Trading will t 
parallel with other European ex- the July and October^ 
changes and to permit an over- only. . 



Lniicu 


r* *.t- 


IV'?-.. 


Montedison fraud trial 


BY PAUL BETTS 


"ROME. .At-.'. 


half of last year. 


earnings in dividends. In 1977 daily net production from the Agencies. 


This advertisement appears as a matter of record only. 




Fepasa-Ferrovia 
Paulista S.A. 


U.S. $200,000,000 

Medium-Term Loan 


guaranteed by 

Federative Republic of Brazil 


managed by 

Manufacturers Hanover Limited Banco do Estado de Sao Paulo SA •j London Branch 

Abu Dhabi Investment Company Bank of Montreal 
The Bank of Nova Scotia International Limited 
. DG BANK Deutsche Genossenschaftsbank 

European Brazilian Bank Limited - EUROBRAZ 
Midland and International Banks Limited The Mitsubishi Bank, Limited 
Swiss Bazik Corporation The Taiyo Kobe Bank Ltd. Toronto Dominion Bank 

Trade Development Bank, London Branch 


provided by 

Manufacturers Hanover Trust Company Banco do Estado de Sao Paulo S.A., London Branch 
Abu Dhabi Investment Company Bank of Montreal The Bank of Nova Scotia International Limited 
DG BANK Deutsche Genossenschaftsbank, Cayman islands Branch European Brazilian Bank Limited - EUROBRAZ 
Midland and International Banks Limited The Mitsubishi Bank, Limited 
Swiss Bank Corporation (Overseas) S.A., Panama The Taiyo Kobe Bank Ltd. Toronto Dominion Bank 
Republic National Bank of New York Trade Development Bank, London Branclt 
Associated Japanese Bank (International) Limited The Bank of Yokohama Limited Dow Banking Corporation 
National Westminster Bank Group The Yasuda Trust and Banking Company, Limited Mercantile Trust Company N.A. 

Partnership Pacific Bank N.V. Provincial Bank of Canada Algemenc Bank Nederland N.V. 

Banco Mercantil de Sao Paulo S.A., London Branch Girard Bank Lavoro Bank Overseas N.V. 
Manufacturers Hanover Limited Midland Bank. Limited The Mitsubishi Trust and Banking Corporation 

Roy West Banking Corporation Limited, Nassau, Bahamas Banco Real S.A. Banco Urquijo S.A., A r «,- York Agency 

Bank Oppcnheim Pierson International S.'A. Canadian Commercial and Industrial Bank 
Central Wechsel- und Creditbank Actiengesellschaft Creditanstalt-Bankverein Mecs cn Hope Finance N.V. 
PKbankcn International (Luxembourg) S.A. Union dc Banqucs Arabcs ct Fran^aisct. - U.B.A.F. 

United Virginia Bank 


January, 197S 




Strong start at Penney 


BY OUR OWN CORRESPONDENT 


CHICAGO, April 3. 


J. C. PENNEY, the country’s apparent reduction in consumer 
second largest retail group, had demand for general mereban- 
a 20 per cent rise in sales in disc.” he said- He predicted 
the first seven weeks of its new healthy retail sales throuhoul 
fiscal year, its chairman, Mr. the year but said it would be 
Dunald Sicbert, told financial stronger in the first half, 
analysts in San Francisco. His He sam that a , thouRh the 


words confirmed the earlier pre- 


diction of another good year in 


company has not had to sacrifice 


1978. following a rise in net in- P 1 " 0 ^ margins so far, he ex- 
come from 8228m. to 8295m. peeled margins to be “under 
(84.51 a share) in 1977. which some pressurfe" during the 
culminated in peak trading in remainder oF the year because 
the final quarter. 0 f the competitvc situation in 

’’ Up to now we see no the industry. 


Corning Glass 


earnings slip 

-NEW YORK. April 3. 


Coal strike 
cuts Chessie 


CLEVELAND, April 3. 

,r,ATPn . , CHESSIE System, the railway 

CONSOLIDATED net income of holding company reports a first 
Coming Gluss Works for lhe quarter net lass of 866.9m.. up 
first quarter slipped from S24ni rrom the year-ago figure of S7.4m. 
to *2_m„ or From 81.36 to 81.-4 Revenue for the latest period 
per share. Mr. Amory Houghton was s255m. against S315m. 

•Tnr.. chairman, said that the Chairman Mr. Hays T. Watkins 
first quarter shortfall occurred blames the coal strike and lhe 
during the first four weeks of rough winter, saying that if it 
the quarter. Business rebounded had not been for these factors, 
strongly in the last eight weeks' t he company would have had a 
he said. Sales for the q uarter profitable first quarter. The coai 
rose from S269.4m. to S2795m. dispute cost some S69m. in lost 
Profit for the last full year was earnings, while the weather cut 


S92m. 

AP-DJ 


a further 312m. from profits. 
AP-DJ 


MORE than 30 people are -to - The charges relate to t: ' 
stand trial in connection with.pany's so-called “black. * 
ihe -so-called “black funds” said to amount to soi 
scandal involving the Milan SObn^ about 559m ^ the./.; 
chemicals conglomerate Mont- irate claimed today. • - • 
edisoru funds, according to 1 r.: 

The decision was announced to- reports here, were usef r 
day by the Rome magistrate, Sig pally for political party p. . 
Ernesto Cudillo. who has con- 10 secure, among otter - • 
ducted a protracted investigation favourable trading ao- : 
into an affair dating back to the concessions following ttt : ~ 
1930s. ' . of the Suez Canal 

The magistrate has indicted 32 The magistrate has in~- 
people/induding then officials of further four people on cl- 
the Edison Electrical Compadyi-alleged fraud against- ttz. ; 
which merged with Montccatini These charges refer to/ : . 
to form the Milan conglomerate, of radio equipment to tt „ 
on charges of allegedly falsify- army, according to tw~ 
ing company balance sheets. trate. ' 


EUROBONDS 


1 


DM250m. for Norway : 

BY MARY CAMPBELL ’ - u!il\ f j \ 

NORWAY last night kicked off minimum of 5J per cenf^. __ 
the April calendar in the D-Mark Apart from this ne , 

sector with a DM250m. issue for announcement, trading .. 
five years. The issue will carry and all was quiet in th . 
an indicated eoupon of 43 per sector. Dealers repon 
cent., which is in line with the prise at the fact tba! 
yield on the Iasi issue but marks hardly eased . * 

a further low point for coupon notincemenr Of thereo--. 
levels. Deutsche Bank is lead trade deficit last Fnoa\. 
manager. noon. " - • , 

in general. D-Mark prices were In the -JPgL S 
more or less unchanged yester- ^couDon^S 1 " 

day. Mexico’s DM200m. offering w ® r * ft 

was. .'priced at par and initial ttu per vA&AV .. 

trading indications were for a Pf{' indicated 

discount of over 2 points on the ^ Jt hutFrif " 

bid side. Dealers had not yet, P«r < *nt but h Bt rw 

however, received their 

m Primary market sources said Jl^^SISJ'bdxSsec v' : - ' 

last nighL that the details of the imbunL ‘ - . 

April calendar of new issues Enmteriln/r - - 

agreed at a meeting ° r . ,' he we /£%Mdy yesterdai^ 

Capital Market Sulxommittee a ? ' - - - 

yesterday were not yet known, 3 ten dency If anytl\ 


i 


hut that the number of issues trading conditio/, 

therefore also the value of ™ Banco f’- 


and 


paper scheduled for ottering j^upJsvSwviJos Pub! '■ 
would be lower than in March. **7ol -Kuwait- ' ijVr,- 

issues totalled somewhat under lunched a 7m . Ruwm 


Issues totalled somewhat udb« J™' - v^naned by Kowa> 
DMlbn. were expected. SSSeDt B 

In the dollar sector, Ishlkawa- 01. p jSt on a 

lima Harima has launched a ^{VatuSS- Bondholdf ; 
550m. floating rate note under JJ a i D ^ 0 jr to^redeem afU '• 
guarantee of Dai-Ichi Kangyo an rice . 

Bank. As expected, the issue, y^rs- Offering pn . . 
for which First Boston (Europe). lB ^ fot' 

is lead manager, offers a margin . The “up ^ 

over 1 interbank rates of a ■“ ’• 

quarter of a point subject to a dinars in recen _ . 




Md 


as 

w 


STRAIGHTS 

Mean AuMmlia SiK 19SH 
.\1IKV Sue 19S7 
Auiiralu SiOL- I732 
\uulriiilDll M. & S D>pc '92 
Barvlaja Bank S5uv 18K . 

Buvraicr 9 ;pc 1992 

Can. .V. Radnor i'lpi- I9S6 
Credit National s:m- 1BSQ 

Denniark S'.pc 1934 

ECS Due IBM - 

ECS Bjiiv i«7 

KIB s;pc 1992 99 

BMI fl.’m- 1939 

Ericsson S'.pr :SS9 

KKSO Spc 1MB Nov 

t.;i. Luhcs P»B*.-r Si pc 1BS4 

ffamenk-r B 'tK 1993 

Hydro OukOl-c 9pc 1992 

ICI Slpc 19«7 

ISE Canada 9! pc 1936 .. 
Macmillan BliR'iit-l 9 pc 1992 
Miwy FcrcufcOn 9}pc '91 
Mlehtlin flipt I98S .. 

Midland tm. Kin si pc *92 
Xarional roal Ril 6 pc 10 s7 
Vjiiunal Ws>mnRtr npc "86 
Xtfwloundland 9pc 1939 ... 
Norses Koin. Gk s;pc 1992 

Norplpi- S’ pc 1939 

Norsk Hydro S!pc 1992 ... 
into 9 pc 19S3 . . - 

Pons Auionomcs One 1B01 
Prov. Quebec 9pc 1993 . .. 

Prov. Saskalcti. 8jpc I9 j« 

Ruud Iniema'looal 9 pc *37 

RHM 9DC IB9t 

'selection Tst aiBC 19W ... 
Sltaiul Ensklldi 9pc 1891 ^ 

SKF Spe 19S7 .... . 

Sweden 'K'dOITIi R;pc 1957 
United RiscuHa Hpc I9S3 


Offer 


9Hi 

BIN 

9j’. 


SELECTED EURODOLLAR BOND PRICES 
MID-DAY INDICATIONS. 


Eastman Kodak j** 
EeoaaUic Ul*4* pc 1» 
Ft rest one 5nc 1985 


07 

97, 


99! 

wo; 

Bank Ol Tokyo 1384 7tfi*pc 

991 

991 

074 

9Si 

Montreal Urban sJpc 1931 

101 

ID) ] 

BKCB 1BS4 84 pc 

99f 

99! 

OS 

98! 

(Vew Brunsnlck Spc IRW 

m; 

»7{ 

BNP. I«B SImpc ; - 

BSi 

991 


97! 

New Bruns. Prov. 8 !pc '93 

1001 

iai 

CCK lflSS Spc 

ss: 

1931 

ion 

iuo: 

New Zealand SI pc leas 

9k! 

99 

Cr.MF 1084 77 pc 

931 

98 

9S1 

99 

Nordic Inc. Bk. 7!pc 1044 

93! 

90 

Crcdl nnstalt 1934 7! pc 

991 

BSI 

93! 

96! 

Norsk Hydro 74 pc 1983 

97J 

98! 

Credit Lyonnais 1982 Spc .. 

.991 


SS 

«7 

Norway 7!pc (SS! 

ST, 

06J 

DG Bank 1893 7U|& 

99J 


OS 

as; 

tJniario Hydro Hpc 19S7 

96J 

97 

UZB 1931 81 IBPC 

IMS 

INI 

9hi 

07 

Sinter 8 !dc 1W2 ..... 

1004 

wu 

Inti. Watmnsir *81 Tia^pc 

89!’ 

1084 

101! 

102 

S. or 5col. Elec. 9! PC 1981 

99! 

lOOi 

Lloyds 18B3 7!pc 

!W! 

im; 

98! 

991 

Sweden iK'diinii itpc lbs! 

07! 

9*i 

LTCB Wfa Sue — 

99i 


99J 

100! 

S. of Scoi. Khie Si DC 1981 

BW 

190! 

Midland 1983 »Pc 

19! .. 


ani 

97 

Tv-lmwc 91 PC 19S4 

991 

IDO! 

Midland 1937 7U|«pe 

99! 


97 

97! 

Tenncvo 7;pi- 1067 Mas ... 

94 

94! 

ORB 1983 7!pe 

991 


no : 

104! 

VolkswaKcn 7;nc 1987 

94* 

93! 

SNCF 1933 8!pc 

93! 


96! 

97 




Sid. and CWrd. -84 7U i&Pc 

991 



cSSr!lH»w"«K 1887 

Ginettr 4!0t? 190 


GobMAw am » « 

1031 coir and Wosnsra 5 pc i»» 5 

99 Harris Spc 1992 -— 

091 HnnMwII BOC 19SS ■■■—■ S 


Honeywell 6pc 1®8 — — ” . m 

ICI s:dc Wi £ 

m* Sptr I»T jjK 

l neb cape 6 .?c 198 S — -- 

ITT «ac 1K7 <m 

JtSOO 8pc 1995 j«j 

Komatsu 71 bc IBM -;-~"=j$ <44 
J. Ray MctHjnnow jipc T* 

MaisosWia KPcW Sf 

Mitsui line 

j, p. Monun «pc 19S 7 ... B 



4- = 


933 
102! 
M 
94! 
Hilt 
11)0! 
99! 
99 
OK 
IPti 
55.’ 
Stu 
SB! 
W J 
93 
90; 
ss: 
sc: 
953 
M! 


Ml 
I in 


Volvo spc 1987 March 93 


urn 
101! 
97! 
93; 
98 C 
102! 
M! 
nr 
1M! 
ftt; 

kj: 

^11 

loo 

Ml 

861 

99! 

83! 


93 

941 

94! 

96J 


STERLING BONDS 
Allied Breweries 10! pc 1» 

9SS Citicorp lOpc 1893 . 

931 Counautdi 9;pc 1858 

ECS 9-.pc 1B4 - 

EIB BJpC IBSS 971 

E1B 93pc 199S 93J 

Kluanct tor ind. 9! pc IBS? Dl! 
Finance tar ind. IBpc 1939 
Flsons UK pc 1957 - 

iJM tone 19SS 

Rowntrcc Uioc I9S8 „ — . 

Scars IB! pc t9S8 

Total Oil 91PC 1934 .... 


931 

984 

941 

841 

94! - 

9-U 


95! 

Ml 

954 

97 

9Si 

Ml 

«« 

96! 

991 

95! 

MI 

B5) 

B3J 


Wnu. and GUns ■« siu.oc «! 1 

Source: White WcW Sc cu rules. 


Nabisco 5l0c 1888 ]nt 

Owens IJllllois 4‘pc W87 - 
j. c. Penney 4!oc 1887 ^ 


Re cl DO «PC UKT- 


CONVERTIBLES 
American Express 4! DC -87 834 

Ashland Spc. 18® Jg; 

Rabcoch 4. Wilcox Woe *97 . 8M 
Beatrice Foods 4-1 pc 1S8C .. 93! 

Beatrice Foods 4>oe 18SS._ UM 

Bccchatn Bpc 1992 93 

Burden Spc 19SS .... 9fi 

Broadvas Kale 41 PC 1887 .. W1 

Carnation 4pe 1987 -— 

Chevron Spc 1988 ..... 


84 

sr 

941 


Metajsjjw 1868 - 


SandvIlt BlOC 1SS8 ^ 


BO 

mu 


us 

T9 

1321 

IS* 


75J 

123* 


Sperry Rand Jjpc 
„ Sturt* «« — 

83 "Rstaco G PC - 
10 H Tosnaai upc Iris--' 

Union CarWtfc 4 a* 198 =^ W( i 
Warner Mtniieri «pc 77 ^ 
Warner Lunbort UK ma ^ 

Xerox 3 pe 19 K 8 

Sm.ro-: Kidder. Peatwdr aw 


78 

IS* 


NOTES 

Australia I'.pc 19S4 96 

Bell Cunadn 7Ip«- I9S« 

Rr. Columhw Ilya ;;pc U3 
Con. Pat-, a! pc r»M 
Do» Chvmiea) Spc 1*S ... 

Kta? ;im- iin-j 

Ki;s Sith- 19s9 

I-Kt: 7! DC UK! 

KKT T.p. 19s4 
Rnm Rwn-K sjpr j*yS4 ... 

tiotnvrrki-n ilor IW* 

Kockurts bpc I«SI — 


DM BONDS 

Bi-CE 5. pc 19SS ... 
BNDE WDC 19» - 
CKE BlPC IB® . 

D unmark 5* pc 1864 

F.CS 3! pc IBM 

I51B Slpc IBM 


1005 

871 

WJ 

100 } 

97J 

071 


ton 


101 

99! 


945 

91! 

99! 

06! 

9W 

931 

9H! 

9.1! 

.WS 

971 

98! 


961 

831 

B3i 

100 ! 

974 

975 
Oil 
97 
96! 
97! 
9*5 


Kuratom SIpc 1997 toil 


EuroHma 3!pc 1998 
Finland 3 ;pc i»sg .._ 
Korsnurks 3Jpc 1980 
New Ocalann 34 pc 1998 

Norrum 3;pc I3a8 

Norviay 4tpc 1983 

Phlliiinlnes 8 !ik 1983 ., 

Sitj-d'-n Spc Its# 

Tdiiurnainobaijn ijpe 1991 ton 
TV 11 Power Co. Bpc 1088 .. DO 
Vi-m zitela- 6pc IBS* 93 

World Bank 51 dc I99U Ml 


1001 

as 

93! 

lOo; 

100! 

I 0 U 

n? 

mil 


too; 

101 

99i 

100 

ion 

101? 

IP! 

97? 

IBS! 

ion; 

00! 

»: 

100 





mm 




15-17 QuaHfesB«gu«'^ 5“ 


Phooe- 




„ Dn « 1ft 
“^r Nm 




fr ‘ 


V 




C. 










ba % 
V 

« c Ue * 

*'■- ... 

.? ,£<! V V; *!£■ ; 

■••- I, 

^ -.7, -r -h-..^' 

-a Vi#- 

■,■ . . " »fii ■■■•» * 

■*■ ■’.ft H’ :/ ■ 

..l/:!:* '-:.v 

;-;V: 

s:.:- Ni : 

-■ . . ■'Vjijj. 


COMPANY NEWS 


ICOMPANIESl 


Cold comfort at Kloeckner- Werke 


■ by gut, martin ' . 

***** FEW combs of 

for shareholders to 

■ Germany’s third 

l?xgesl. steel producer. - There 
if?*? # n° dividend for 
1976-77— "the 'third blank: year In 
* tte management Is 

unable to forecast, a resumption. 

Management cfta hatdly be 
Warned- -for this: Lost year. In 
ge words of chief executive Dr. 
Herbert . GLenow, " was “the 
blackest- year for steel " since 
the. war. . There are few signs 
of air early improvement In the 
tadnstry’s.. staiatipn; 
■^Furthermore^ it' was clear to 
the some "40.00a shareholder* 
early Last year that a 1976-77 


;■ - • ■ ■: *? . • 

■Paytrat was. tmldcely, whOe In 
December.1877, it was manifest 
that 1977-78 rfffld hardly be 
expected to produce -a .return to 
the dividend 4&S. ■ ' 

_Dr. Gienow announced that 
■Kloeekner'fr v -. - 59^6:77 losses 
totalled DM270m. . (£72_2m.). 
There had been an improve- 
ment In order* for rolled steel 
products during the first five 
months of the yetig-hut even so 
any foreeast about & resumption 
in dividend T would be pure 
Speculation,"' he said. 

The decline in earnings and 
ih order , volume*. h*d been so 
great that current improvement 
could only be’;* viewed with 
cautions optimism. Zp the first 


five months of 1977-78, which 
started on October 1 last year, 
monthly average rolled steel 
output stood at 312,000 tonnes, 
which was some 52 per cent 
below the level of 1976-77. In 
the crude steel sector, monthly 
output averaged 338,000 tonnes— 
5.5 per cent, beneath the pre- 
vious year's performance. 

This drop in production was 
thatched ■ by an even greater 
decline In monthly average turn- 
over— illustrating the pressure 
on prices. The group's monthly 
external turnover averaged 
DM321&L, which was 6.6 per cent 
below the previous year’s 
average. 

Kloeckner is continuing its 


-7 U • 
'•'•T, C I; - 


ight at Linde 


!.-• 'ii: :;■?« 

'l*r I- -■ *i ll-M. ' 

. - ■* ■!■■■ .. l ‘C.V 


ding houis 

:NT v *>'«i iiJDyi i 


t. J ' - •'■■a-. ’• 
* -1 i-x»- . „ • 
.**:.■ . ^ 

ic i 

•-K- 

IL-. \ . .. I- 

7 '.; W 3 

h* V -| i.r_. ' ’ “ t ' 

r ‘ f 0 ! 55 

l}.i* ‘ • - A ‘ *. 

»■ 

V-. i 

.. ■ .21; r~ . 


fraud trial 


BT OUR O WN CORRESPONDENT 


IJNDE, the 'Wiesbaden-based 
plant, engineering and construc- 

Hnn urnmn . 


profits.” for 1978. This follow* 
the group’s best year ever In 
1977 when earnings sub stan tia lly 
exceeded the group's expecta- 
tions. 

Herr Hans , Heinhardt, the 
group's- chief, executive, -was un- 
willing to make any- firm fore- 
casts on ttfclCT Minings front,. 
There was too much uucertainty 
■ — primarily as a result of the 
current pay dispute in the metal 
industry and the uncertainty -in" 
the foreign exchange markets— 
for profit projections so early in 
the year, he salt 

Prospects for a suitable encore 
to 197Ts performance look rea- 


sonably bright however. The 
development . of I.bpsiness during 
the first two monfU of 1978 have 
been more than satisfactory with 
turnover up- 9 per cent to 
DM 132m. and the inflow of orders 
a hefty 135 per cent ahead at 
PMsaW (5262tn.). Turnover for 
the year as a whole is forecast 
to rise by about 10 per cent 
. At the end <g .February the 
group’s - order book! stood ' at 
DM£62btt. ‘ ($L3bn-7 — 92 per 
cent abont fbetevd at the same 
point of 1977. The main reason 
for the increase whs a rise in 
bookings in the. plant sector 
which Is normally' very quiet 
.during the opening months of the 
year. Here Otero was a substan- 
tial boost from BASF's DM294ra. 
order for a petrochemical plant 
. The reliance, of £ he plant 


FRANKFURT, April 3. 

sector on very large orders 
naturally made comparisons on 
short-term progress rather diffi- 
cult said Herr Meinhardt The 
inflow of orders however, also 
showed positive developments in 
other production areas. . 

So far the decline in the value 
of the dollar does not appear to 
be causing Unde major problems 
on the sales front, although more 
rationalisation seems on the 
cards to enable the group to 
remain competitive. 

In 1977 group pre-tax profits 
advanced from DM69.4m. to 
DM94.9m. ($47m.) while net earn- 
ings rose from DM31.2m. to 
DM33.Sm. . Turnover went up 
from DMlfiSbn. in 1976 to 
DM1.67hn. (£445.9m.) although 
the inflow of orders decreased 
from 2>M£25bn. to DM1.62ba 


FRANKFURT, April 3. 

policy of cutting back wherever 
possible to save money. This 
means further rationalisation, 
together with its corollary of 
further reduction in Its labour 
which was already hard hit last 
year. In the first five months 
of the business year same 500 
workers lost their jobs with the 
parent concern alone by the year- 
end it planned that the total will 
reach some 1,200 workers— or 
about 8 per cent of the labour 
force. 

Losses in 1976/77 came entirely 
out of tbe steel making sector. 
Kbeckner-Werke's steel proces- 
sing operations broke' even and. 
indeecO would have produced 
profits had It not been for prob- 
lems at the group's Osnabroeck 
works. 

In 1975/76, when steel making 
made a loss of DM1 35m.. it was 
offset by a DM40m. profit from 
the processing sector. The steel 
sector total losses of DM95m. 
had. themselves, been more than 
compensated for by earnings in 
other areas and the croup 
declared a net of DM135,837. 

This .year there were no profits. 
However earnings from sales of 
real estate and shareholdings, 
together with increased depreda- 
tion, produced a total of 
DM264m which reduced the 
group's net balance sheet loss 
to DM95m. 

Group external turnover in 
1976/77 totalled DM4.12bn„ 1.1 
per cent, down on the previous 
year’s DM4.17bn. Turnover in 
the steel making sector declined 
by 2.4 per cent to Dm. 2.65b n^ 
while in the processing sector it 
showed a slight L4 per cent 
increase to DML47bn. 


DOMESTIC BOND* 1 MEDIUM TERM CREDITS 


New German Uitfted Arab Shipping loan 


.. .. . . 


..■cf 


r Norm? 


government 

funding 

By Jeffrey - .L f; ■ / A. : 

FT IS widely expected In Frank- 
furt that the German Govern- 
ment will tap - the domestic bond 
market early , next, week; Spero 
lation focuses, currently op a 
figure' of DMI^jo. ($590m,) wjth. 
dealers antiCipAtirig-torniaJ issue 
“ announcement, after Thursday’s 
meeting, of * the. 7 Bimdesbank 
.capital markets; committee. > \ 

A new issue of '• this size and 
status presents the authorities | 
• with an .important test, “A 
. ,• go^nm^tlfandiflg^r^ 
schedule! ;ifar: late Mmxh^i and 
the 'Bundesbank -ha* clearly 
played, for' sc little time in' the I 
'hope that the current unsettled) 
conditions . .In : : long-term, bond 
markets would, blow oyer. . ' j 

The welter of- new paper seen 
in the market for DM denomi- 
nated foreign bonds as a direct 
result of weakness ■ of the; 
dollar has caused . substantial 
indigestion. .Sentiment there 
has to: some extent trashed over 
into a. domestic -arena' already 
unsettled by; the way call money 
rates are rising under the Impact 
of the latest tax-paying season. '] 

The most recent. domestic new ) 
Issue — DM400m. of ten^ear, 
money. at 5J per cent from the ; 
Lastenausglelchesbank — stands, 
at one point discount on Its par- 
issue’ price. The prices of . the 
most recent government loan, . 
. which came In - two tranches o£| 
eight-year and 15-year money at| 
5i per dent ana 6 per cent 
respectively, have - eased lower i 
recently; . ~ . . i 

Over An Paris, meantime,: 
where bond maxkets have been.: 
reacting, with enthusiasm .to* the 
election results, .interest- rotes 
again eased yesterday. •- But 
dealers are now beginning to, 
insist that the authorities are 
about ta call a halt to a down- 
trend In interest rates that has 
now. taken call money down from 
10J per cent to 8$ per cent in 
little more than two months. '. 

The latest borrower, to turn to 
the bond market for funds Is the 
French, national railways (SNCF) 
which expects to issue Ers.TOOm. 
in bonds -this .month.- . 

. According to sourcea in 
Amsterdam: - Nederlandsche 

Middefistandsbank- plans, to issue 
Fls.lOOm. of ten year debentures: 
To - be 1 priced to-morrow, the 
bonds will - carry a coupon of 
7} per cent- Subscriptions, open 
,oa Friday, ._ . • .. 


• . BY MARY XAMKBl. 

A MANDATE to arrange the rently under construction to 
United Arab Shi pping Company's expand the company's fleet. 
$109ro ^ighlSfeah has now 


8109m ^ightSifeaii has now ^Details „ the ® ahrain 

National Od Company’s pro- 
Posed syndicated loan have now 

also been confirmed. In addition 
as “c;Mrdlo^ bMfci, ttey , J60nl , a l0M of 

Strain (about 

$15m.) will also be provided— 
WitfS l>elieved to be the first ever 

ST’S wSSm » ?^ a,cd loai1 m BairaJai 

nmaum}; «n0 the Pari^-based the mandate to 

^ ‘ arrange the liana has gone to 

a^eni. Danxj. . Gnlf Inteanational Bank, and 

r .Interest will be payable at a the spread' on the dollar loan 
margin : bror Interbank rates of will.be {.per cent for the first 
| per cent for the first five years three years -and j per cent for 
and,l per cent Jfcrthq last three, the -last. four. The, Bahraini 
underetpad ,. .thftt these ^^nar. loan-will carry a fixed rate 
ffWSkl - be^i: 7- ■narrowed , 0 f. 81 per cent Both loans will 

during the courge. of. the negotia-. be indicated. only among banks 
tions ta a . competitive bidding j n Bahrain. 

Situation ; with the result that . The • loans, . which are State 
some banks' dropped out of the- guaranteed, will be used . to 
syndicate’ On the grounds that finance a gas refining plant (the 
margin* went too low. gaa concerned is- •“ associated ** 

The proceeds of. the loap will —that which is often flared off 
be used to' ^finance ships cur- in the process of producing oil). 


Atlas Copco steady 


7. BY JOHN WALKER 

ATLAS COPCO, the Swedish 
compressed air equipment maun- 
iaeturer, says Jn its final report 
tor 1977 that the depressed 
state; of world trade has had its 
effect oh some of the. group's 
products, particularly for the 
ntining industry. - • 

In spite of these unfavourable 
treads 1 -group'. sales rose by JO 
per cent during- the year: This 
means that - tbe total sales 
Volume Is largely unchanged, 
'due tb.'price increases and ex- 
change: fluctuations: Production 
costs are very high in Sweden, 
Belgium and West Germany, 
three • of ', the concern's main. 

manufacturing centres. 

The 10 per cent increase in 


Dyno proposes c 

I BY FAY GJESTBt 

THE BOARD of Dyno.IndustrLes,- 
the NorWegiin. manufacturer of. 
chemicals and explosives., has 
recommended . a dividend of 
Kr.lS'-per Hiare for 1977, com: 
pared with KrJL2 a year earlier. 

Net profit last year was Kr 29m.; 
compared with KrJ24m. in 1976. 

! The Board proposes to increase 
share ^capital' bji Kj.43.6m. to 


STOCKHOLM, April 3. 

group sales means a rise from 
Kr3.7bn. in 1976 to Kr.4.1bn. 
(some 8260m.) in 1977. The 
order intake rose by 15 per cent 
to KrA2biL Group pre-tax profit 
amounted to Kr^97m. (around 
$18.toL) -down 12 per cent on 
the previous year. - 
Tbe profit m argin dropped 
from 89 per cent in 1976 to 7.1 
per cent in 1977. Tfie return 
on Capital .fell to 1L4 per cent, 
last year from 12 .S per cent, in 
1976, while adjusted net earn- 
ings showed a fall from Kr.14.48 
per share in 1976 to TKr.U.35 per 
share in 1977. The Board recom- 
mends an unchanged dividend of 
Kr.6 per share. 


increase 

OSLO, April 3. 


Rr .152.6m. through a two for five 
•issue at par. It also wants 
authorisation to make a further 
increase later on to Kr.l70m. 

. Mr. Anton Merckoll. managing 
director, says an increase in 
share capital Is needed because 
Dyno has recently acquired a 
number of companies, and 
.further 'acquisitions are envi- 
saged. . . 


Iran has arranged S67m. worth 
of eight year finance by means 
of an agreement whereby a 
syndicate of banks headed by 
Iran Overseas Investment Bank 
will buy promissory notes as 
they are issued over the next 
two years. The issue of tbe 
notes will be made to the Italian 
company Sadelmi Cogepi to pay 
for electrical equipment and tbe 
banks will then buy them. They 
will mature over a period of 
time ending in 1985. 

The notes will cany a float- 
ing rate of interest at a margin 
of 1J per cent over inter bank 
rates. 

It has also become known that 
the Qatar riyal 120m:’ (about 
830m.).- 10-year loan for the 
Qatar Fertiliser .Company, re- 
ported last week, will be pro-, 
vided solely by the Qatar | 
National Bank: Half of It lakes 
the form of a firm loan, while 
the other half may or may not 
be drawn. It will be provided) 
on a floating rate basis. 


Belgian stores 
lift dividends 

By David Buchan ’ 

BRUSSELS. April 3. 
BELGIUM'S TWO largest store 
chains, GB-Inno-BM and Deputize, 
have both, as expected, raised 
their dividends for last year on 
the basis of substantial increases 
in. turnover and gross profit The 
larger of the two, GB-Inoo, has 
increased - its '•dividend to 
B.FrsJ.50 as against B Jrs.180 for 
1976, while Delbaize has raised 
Its net dividend to B-Frs900 (146). 

GB roles that its turnover has 
risen 14 per cent to BJ'rs.76.9bn. 
($2 ,44b a.) well above the general 
8 per cent in retail sales in 
Belgium last year. Delhaize's sales 
did even better, rising by 18 per 
cent in 1977. 

But the net profit picture looks 
quite different for the two 
companies. GB recorded a 
BFrs.665m. net profit (609m.). 
while that for Delbaize went 
down to B.Frs.l64m. (218m.). 
This is because Delhafze has' 
decided to . take substantia] 
advantage of the November, 1977 
law giving companies setting aside 
cosh for -new investment greater 
tax breaks; while GB has not . 

Quite where Delbaize intends 
to put its new Investments is not 
exactly clear. Certainly it has 
become much harder for the big 
retail chains to get Government 
permission to open up new super- 
markets and hypermarkets. 
Delhafze only opened one new 
supermarket last year In Belgium. 


Scrip issue 
And bigger 
dividend 
fromUOB 

By H. F. Lee 

SINGAPORE. April a 
HTlirtfift profits, an effectively 
increased dividend and a one- 
for-ten scrip issue is announced 
by the United Overseas Bask 
(UOB)— one of Singapore's “ big 
four” banks. 

Group profit for 1977. after 
providing for taxation, diminu- 
tion in value of assets and 
allocation to contingency reserve, 
increased by 15.4 per cent, to 
$S2&5m. (S12-3m.). 

At the bank level, net profit 
rose by the higher rate of 20.4 
per cent, to $S2i9m. 

The group has proposed a 
final dividend of per cent., 
which together with the five 
per cent, interim dividend paid 
last year makes a total of 12J 
per cent, for the year. 

The group has proposed a 
final dividend of 7* per cent, 
making 12* per cent for the 
year. UOB said the 12 i per cent 
dividend payment would amount 
to SSlL7m. This is 43.3 per cent, 
higher than the amount paid in 
1976. when the total dividend 
rate was also 125 per cent, but 
was paid on a smaller i^ued. 
capital, which has since been 
enlarged by rights and scrip 
issues. 

The proposed scrip issue. 1 
which wjll be made by capitalis- 
ing pan of the group’s share 
premium account of SS122.3m. 
will raise UOB’s existing issued 
capital of SS155.65m. to 
SSI 7121m. New shares arising 
from the issue will not be 
entitled to the current . -final 
dividend. 

Gain at Bank 
Buminutra 

By Wong Sulong 
KUALA LUMPUR. April 3. 
BANK BUMIPUTRA, the 
Malaysian Government-sponsored 
bank to. help the country's 
Malays, has reported 9 27 per 
cent increase in pre-tax profits 
for last year. 

The group's pre-tax profits for 
1977- was ringgitsl6.Sra. 
($US6.9nL). compared with ring- 
gits 12.6m. in 1966. Tbe bank 
itself recorded a 23 per cent 
increase In pre-tax profits, from 
rinpeitslI-Sm. in 1976 to ring- 
gitsI4xn. last year. 

Deposits rose sharnly, bv 48 
per cent to nearly ringgits3bn., 
but total loans and advances 
rose only by ll per cent to 
ringgitsL13bn.. reflecting on 
the high liquidity experienced by 
tbe bank during the year. 

The bank's subsidiary. Kewan- 
ean Bumiputra Berhad, which 
deals in unit trusts, recorded a 
25 ner cent- increase in pretax 
profit from ringgitslfim. to 
rin*ei*s2m. 

Profit of another subsidiary, 
Bumiputra Merchant Bankers 
Berhad. declined marginally, 
although it expects profits to im- 
prove this year following the 
expiry of the management agree- 
ment with Rothschilds, of Lon- 
don. 

On its international operations, 
the bank -said it opened up a 
branch as well as a finance com- 
pany In Hong Kong last Decern- j 
ber. in addition to its branches 
In London and Tokyo. The bank I 
plans to open a branch in tbe 
Middle East this year. 

Swire takes stake in 
Austrian brickmaker 

HONG KONG's Swire group has 
purchased an interest of just 
under 10 per cent in . one of 
Australia’s largest brickmakers. 
Brick and Pipe Industries, writes 
.Tames Forth from Sydney. The 
Board of Brick and Pipe des- 
cribes the purchase as a “pleas- 
ing extension” of an association 
that presently exists in a cartage 
venture. 

Brick and Pipe is an eoual 
shareholder with Trans West 
Haulage (Holdings) in a com- 
pany known a& Trans Brick Pty. 
Swire has an 80 ner cent, stfake 
in Trans West Mr. W. L. Ross, 
managing director of Trans 
West and a director of Swire, 
has been annotated to tbe Brick 
and Pip® Board. 


Tisco to modernise steel 
mill at cost of $400m. 


BY R. C MUKTHY 

TATA IRON AND STEEL Com- 
pany (Tisco), tbe only private 
sector steel unit ta India, -is 4o 
modernise its ageing steel mill 
with an investment of Sbn ta 
4bn. rupees (8350m. to 8475m.). . 

About Haw of this amount wilt 
be in foreign exchange, since the 
mo dernisation programme in- 
volves the induction of updo- 
date technology of steel making 
to replace the ' age-old open- 
hearth furnace process. Hie com- 
pany -also proposes to add some 
new product lines. 

The modernisation proposal is 
a refreshing change in the atti- 
tude of the company, which had 
held until recently that a large- 
scale investment was totally be- 
yond its means, and that this 
position would continue until the 
Government - controlled steel 
prices were set more realistic- 
ally. It had commissioned Nip- 
pon Steel Company to prepare a 
project report for a major ex- 


pansion programme of 12fan. to 
15bn. renpees. but the plan was 
abandoned. 

Three reasons are given to ex- 
plain tbe change in . the com- 
pany's stance. In. tfie first- place, 
domestic demand for steel is 
picking up. Structurals, small 
dimension, rods and mild 
steel plates are commanding 
premiums in -the market As a 
result, steel producers ■ have 
swung away from the less profit- 
able export market and are con- 
centrating on the domestic 
market Tisco is currently sell- 
ing, on an average, more steel 
ta a month than it produces, by 
drawing upon accumulated 
stocks. 

Second, the feeling in business 
circles is that the Janata Govern- 
ment has a. positive approach to 
industry, an Indication of which 
is an assurance to allow a 12 per 
cent, post-tax return on capital 
in the cement industry. And 
last, there is a green signal 
from the Government for the ex- 


BOMBAY,: April 3. 

pension of the steel Industry, 
which Js dominated by the pu v ’’ 
sector. The Soviet-aided Be 
steel plant is to be expand! 

4m. tonnes, and Bhilai steel 
is to be modernised. An expo, 
orientated steel unit is to be set 
up ' at Visakhapatnam, Andhra 
Pradesh. 

The product mix of Tisco 
modernisation programme and 
the pattern of financing are 
being worked out It is certain 
that the company would opt for 
producing high-value products 
like certain . alloy steels, high 
carbon and low carbon steels. 

The use of micro-alloyed steels 
ta place of plain carbon steels, 
says Sir. J. R. D. Tata, the Tisco 
chairman, is becoming attractive 
and worthwhile for a large 
number of industrial and con- 
struction purposes because of 
their higher s txen gth-t o- weigh t 
ratio, their better external 
appearance and finish, and their 
greater durability and resistance 
to corrosion. 


Sharp lift in Cheung Kong profit 


BY DANIEL NELSON 

CHEUNG KONG Holding, which 
last year made extensive property 
purchases, yesterday announced 
a net profit of $HK85J>5m. 
(SUS18fim.), a 45.3 per cent in- 
crease on 1976. The final divi- 
dend is- IS cents, making a total 
of 32 cents, up 48 per cent, 
covered 2.4 times. Earnings per 
share rose from 52 cents to 
75 cents during the year. 

Chairman Li Ka-shtag forecast 
a “ significant ” increase in profit 
for 1978. But he expressed fears 
over the rapid rate of increase 
ta land prices, and said that the 
company would adopt ' " a more 


prudent policy ta development 
planning.” 

The figures were helped by 
advance sale of fiats but future 
earnings should reflect a better 
recurrent income base. Li Ka- 
shtag said that re ntal income 
should amount to 3HK45m. in 
1978. Some SHK25m. of this 
from Wynn cor. the hotel concern 
acquired last year. 


Hongkong and Kowloon Wharf 
has announced a rise of 14J3 per 
cent in 1977 group post-tax 
profit, to 8HK.77.3lm. ($US16Bm.) 


HONG KONG, April 3. 

from $HK67.34m. ta 1976. writes 
Daniel Nelson from Hong Kong. 
Earnings per share increased 
14.1 per cent, to 89 cents from. 
73 cents. An extraordinary profit 
of SHK16.27m. was earned during 
the year, but -is not included ta 
tbe profit figure. 

The final dividend is 53 cents 
making a total of 65 cents, a 16 
p- : cent, increase. The directors 
expect that earnings and divi- 
dents will increase in 1978. 

Summarising the year’s activi- 
ties, they note that the . Ocean 
Centre Building was completed 
during 


IDB offshoot’s earnings almost doubled 


BY L DANIEL 

THE investment company of the 
Israel Discount Bank — the only 
investment company of the Big 
Three banks which is heavily 
involved in direct participation 
in industrial enterprises— reports 
that its net profit rose in 1977 
by 96 per cent — to I£7l^m. 
(84.5m.). of which I£22.7m. 
represented net capital gains. 
These figures compare with 
I£3.3m. in 1976. of which only 
I£5.7m. were capital gains. 

Total earnings per share came 
to If 0.85 (on a fully diluted 
basis) per share of LEI nominal 
value, against I£0.52 in 1976. The 
net asset value per share as .of 
end-1977 was -I£410 as against 
I£34I at endJune. 1976. with 
current market valuation of the 
shares just slightly below their 
calculated value. 


The dividend payments will be 
18 per. cent cash and 25 per cent 
bonus shares, as against 16 per 
cent and 10 per cent, respec- 
tively, in 1976. 

Total balance-sheet assets as of 
December 31 were I£5.42hn. — up 
54 per cent on end-1976. Total 
capital and reserves came to 
I£246m., against l£165xn. a year 
earlier and tbe investment port- 
folio to I£233m. as against 
l£174m. a year earlier. 

The various companies ta 
which the investment company 
holds stock improved', their 
liquidity position during 1977, 
and productivity Improved. The 
investment company's activities 
cover mainly its industrial in- 
vestments. a loan portfolio and 
the management of eight mutual 
funds, with I£43bn. for its parent 


TEL AVIV, April 3. 

company. Among' the main in- 
dustrial Investments are Elscint, 
which is competing on overseas 
markets ta the field of medical 
electronics, Iscar Cutting Tools, 
a new aluminium parts plant and 
so on. 

The exp or t s of the industrial 
enterprises ta which the invest- 
ment company holds stock in- 
creased' to S60m. ta 1977, from 
$16m, in 1972. 

However, the general manager 
of the investment company, Dan 
ToUcowsky, while welcoming- the 
Israel Government’s floating of 
the Israeli pound last October 
and the consequent unification of 
exchange rates. . warned that 
unless the Israeli pound . falls, 
profitability of exports will de- 
cline as local wages and other 
factors increase costs. 


Japan’s fast-food groups still expanding 


1 BY YOKO SH1BATA 

JAPAN'S FAST-FOOD industry 
is tbe one sector of Japan’s 
domestic economy which is still 
managing to grow by nearly 
20 per cent a year. According to 
a recent survey of the top 100 
fast-food companies in Japan, 
sales of these companies rose 
182 per cent in 1976. and then 
by 172 per cent, in 1977, when 
their combined turnover rose to 
Y894bn. ($4bn*). The- survey, by 
tbe Nihon ' Keizai Shimbun, 
assesses the fast-food market is 
now the most rapidly growing 
sector of the overall restaurant 
business, which had total sales 
of about Y11.000bn. last year. 

Foreign companies have found 
opportunities in the fast-food 
market in Japan to take an in- 
creasing share of the industry’s 
sales. For instance, McDonalds 
hamburger franchises in Japan 
now are the third largest 
restaurant, chain in tbe country 


(op from seventh ta 1976) with 
sales of Y22fibn. ta 1977, when 
they grew by 48.9 per cent on 
the previous year.j Kentucky 
Fried Chicken ranks 20th in the 
fast-food businesses (which in 
Japan include noodle shops, 
fried eel shops, and so on). 

The American. Fried Chicken 
chain had sales last year of 
Y12^bn- up - 30.2 per cent 
Baskin-Robbins, Pizza Hut, 
Shakeys and other American fast- 
fodd -companies are boosting 
sales and o.utlets,. and even the 
South Korean-owned Lotte Indus- 
trial group has pushed strongly 
into the market with its chain of 
“Lotteria^ ' ice cream-and- 
hamburger shops, which boosted 
their sales by 53 per cent, last 
year to over YIQbn. 

. The top 56 companies on the 
list published by Nihon Keizai 
together had sales of Y642.4bn. 
in 1977. an 18.3 per cent In- 
crease.- Some did far better. 


TOKYO. April 3. 

notably the Kozo Sushi chain of 
raw fish shops which increased 
sales last year by 62.7 per cent 
to Y24fibn. By type of food, tbe 
market made by the top 100 
companies breaks down to show 
about 42.4 per cent serving 
strictly Western-style food (Ham- 
burgers and so on), and 31.S per 
cent Japanese food, while 20 
per cent are coffee and snack 
bars. 

As a result of continued 
success at the fast-food chains, 
many Japanese companies from 
outside tiie food business have 
been tempted into the field. 
Kawasaki Steel farms eels and 
has set up a chain of “Kabayaki ” 
restaurants, Sony has moved into 
coffee shops, and trading com- 
panies like Mitsubishi and Mitsui 
nave gone into multiple joint 
ventures with overseas partners 
(including the UJC-’s Berni Ipns 
until it was bought out by the 
Japanese partner). 


AH these securities having been sold, this announcement appears as a matter of record only. 


These securities having been placed privately outride The Netherlands, 
■ this announcement appettp as a mailer of record only. 



Finance for Industry Limited 

( Incorporated in ’England under the Companies Acts 1948 to 1967) 

£ 12 , 000,000 

10 per cent Sterling/U.S. dollar payable Bonds 1989 


S. G. Warburg & Co- Ltd. 


THE KINGDOM OF NORWAY; 

Dm 100,000,000 

- 6% % Bearer Notes 1978 due 1983 


Bazique.de Paris et des Pays-Bas Deutsche Bazik 

JUrtiengeseUschaft 

Srediefbank-SJl.Luxemboiirgeoise Saloznon Bro&ezs inter n ational 

Limited 

Swiss Bank Cozporation (Overseas) , Westdeufeche Landesbank Girozentrale 

Limited 


^ .vrlt . : 

. . ■ »■**■ ' ■ 


BanfcMees 8t HopeNV 


Deutsche Bank Kredfeftank &A. Luxemboargeoise 

AktfangaeJIicfiaft . . • 


April 4, 1978 


Barclays Bazik bitezziatiozial 

Limited 

Midland Bank Group 


Lloyds Bazik International 

Limited 

National Westminster Bazik Group 


The Royal Bazik of Scotland 

Limited 


• .* • 



34 



MARKETS 


Financial Times * Tuescfcay April '4 1978" 


Dow 6 weaker in moderate activity 



BY OUR WALL STREET CORRESPONDENT 


THE RECENT declining trend on 
Wall Street become sharper and 
more widely-based to-day in 
further moderate trading. 

The Dow -Jones Industrial 
Average ended H.32 ueaker at 
731.04 and the NYSE All Common 
Index lost 41 cents more to 4843.44, 
while falls outpaced gains by 1,084 
to 375. Turnover came to 20.23m. 
shares, virtually matching last 
Fridays total wf 20.13m. 

MONDAY'S ACTIVE STOCKS 

Change 


flay 

-II 



Slocks 

ri»«in 


traded 

pruv 

Gillette 

ni.MNio 

2*1‘ 

,uiKr>M3 lluiDri 

. 291500 

41 

Spurs H"“bU"jk .. 

iVtJiUll 

22! 

r.S Steel 

2:7^110 

2-i J. 

K Jinn 

fSSJWO 

i'SJ 

'■.cweral rdumrs .. . 

IT?, IM) 

GO! 

KaJsiui Purina 

IlCJUfl 

is:- 

r.4iii 

. lii.fion 

22j 

L=un 

140 aoo 

44b 

f.en. PuMic Oil.. 

lAi.WO 

ut: 


+ li 


However. to-day the Fed 
indicated its target rate on funds 
remained the same and short-term 
interest rates declined. 

Buttes Gas and Oil. after being 
delayed at the opening, sur- 
rendered 2; to $12, while Getty 
Oil lost SI to $158 — Buttes 
reported a fourth-quarter loss 
compared, with a year-ago profit 
and said the ruler of Sharjah in 
the Persian Gulf has raised taxes 
and royalties on production from 
the Mubarek field off Abu Msua 
Island, in which both companies 
have interests. 

Coming Glass, on lower, first- 
quarter earnings, receded 11 to 
$451. but Nevada Power, on raising 
its quarterly dividend to 50 cents 
from 44 cents a share, rose 12 to 
$231. ‘ 

THE AMERICAN SE Market 
Value Index retreated 0.31 to 
128.42 on volume of 3.36m. shares 
(3.25mA. 


Analysts blamed the market 
malaise on a number of negative 
forces — inflation, a possible 
tightening of Federal Reserve 
monerary policy, the huge 
February trade deficit reported on 
Friday, dollar weakness and gov- 
ernment projections that the first C'nnnAa rnnnfc 
quarter Gross National Product. redltb 

after adjustment for inflation, will 
show little or no growth. 

Speculation spread on Wall 
Slret th3t the Federal Reserve 
would soon tighten money policy 
in its drive against inflation and 
also to support the dollar. 


OTHER MARKETS 


Canadian Stock Markets turned 
downwards yesterday in fairly 
busy trading following recent 
strength, the Toronto Composite 
reacting 4.1 to L.05S2. Golds 
crune back 19.2 .to 1.296.5, Metals 
and Minerals 13.9 to S76.0. Oils 


and Gas 8.6 to 1,395.6, and Banks 
0.37 to 250.28, but Papers con- 
trasted with a rise of 0.41 to 
105.44. 

PARIS — Market moved easier 
as profit-taking continued, with 
the firm franc and easier day-to- 
day money having little effect. 

Stores and Foods were mixed, 
while Denaln and Crensot-Lolre 
were firm spots in Steels, bat 
other sectors were lower through- 
out. Materiel Telepbonique were 
unquoted after heavy selling 
orders could not be balanced 
with buyers. 

BRUSSELS — Local issues' were 
inclined to gain further ground 
in quiet trading. 

GB-lnno-BM, on declaring an 
increased net dividend for the 
year to January 31, rose 45 to 
B-Frs .1,960. Delhaize. which also 
announced a higher net dividend, 
added B.Frs.5, while Union 
Miniere, despite proposing a 
lower net dividend, moved ahead 
22 to B.Frs.716. 

AMSTERDAM — An ■ easier 
tendency prevailed. with 
Heineken lasing Fls.3.0, AJgeraelne 
Bank Fls.2.0, and Unilever. Royal 
Dutch, HVA and OCE Grin ten at 
least FLs.1.0 apiece. 

Ahold, however, gained Fls.l.O 
following publication of Its 1977 
trading report Akzo, Hoogovens 
and ned-Lloyd shook off initial 
losses to close slightly higher on 
balance. 

State Loans were firm. 


GERMANY — Stock prices 

mainly hardened, partly on the 
agreement reached to end the 
German metal workers dispute. 

Linde rose 2 to DM237 on news 
of the company's improved order 
position in the first two months 
of this year, but Rloeckner-Werke 
shed 50 pfennigs to - DM93.50 
after announcement of company 
figures for the first five months 
of its accounting year. 

Motors showed some gains, but 
BMW and Volkswagen were 
slightly easier. 

The Bond market was quiet 
with public sector issues closing 
mixed. Gains extending to 20 
pfennigs and losses to. 15 pfennigs 
were recorded. The Regulating 
Authorities sold DM5. 7m. nominal 
of paper against sales of DM3m. 
last Friday. Mark Foreign Loans 
we re little c hanged. 

SWITZERLAND — Stocks- were 
looking a shade softer in a limited 
turnover following the renewed 
decline of the dollar in the wake 
of the record U.S. trade deficit. ' 

Banks, however, were mostly 
steady, while Helvetia rose In 
Insurances. 

Domestic and Foreign Bonds 
held steady in light trading. 

MILAN — Bourse prices were 
lower in qnieter trading with 
almost a total lack of buyer 
interest. 

Pirelli Spa led Industrials down 
to close 19 weaker at L996, -but 
ftalsider and' Olivetti Ordinary 


Indices 


R.Y.S.E. ALL U0KM0B 


Rises and Fails 

Apr. 5 ; U«r. 51 liar. 30 






1 1 1 
Apr. • liar. liar. 1 


| 1978 


1,887 

1,828 i 1,848 

MEW YORK-mwjobes 








37S 

682 l 593 




1 1 1 




' Falra ~-| 

1,084 

488 

748 754 

492 ! 501 

: ; ; '19TB 

piuro >.-urupilat'D 

49.441 49-BB 49.961 50J17 
ill! 

1 51.82 
[ (3/1/ 

( (6/3) 

0 ; il 50 ■ 23 ; 2# | 27 • U«b j 

1 U)« 

1 Uigb | 

| Luir 









• ! 1 1 

i 

1 ! 

!■ 

1 

UOHTRKAL 


T\ 

I Mar. 
31 ! 

i 

Mar. 

30 

1 ! 

I87B 

- 

(nlusirini... 751.04 757.56 759.67 761.76,758.64:755.21 817.74 ; 
• 1 1 • / fS.’li 

; 742.12 

I0S1.7D 

41.22 



23 { High 

Unr . 

H’nieH’n Is’ 89.46 89.54! 89.721 89.69! B9.83 89.77, 9026 

1 : ; 1 i (4/l» 

lranhimn.... 206.40 207.16 207.20 207.75 207.68 206.81 215.77 

4a.36 

1 (26/1) 
13.-.6I 

fll/liUlj 
279.88 i 

1S.Z5 

Imluutrla 

ComMued 

175.911 
1 80.94 J 

1 174.15 
161J2S 

173.39 

180.57] 

172.91 174.98 0/1) 

] 180.24] 181.25 (31/5) | 

182.90 ( IBB) 
170.82 (30/1) 

*- 1 Mines 104.74 I05.68 1 105.72 106.08 106 J5- 185.77 118.98 

„ . 1 : : ! ! li/ll 

T m- tin-- »>•> * • 1 1 

•Dr. ; 20,210 28.130 20.480 25,460 21.000 1 . 18,870 ■ 

«/Ii 

1 1D2.B4 

iitzmi 
1 165.42' 

wt'ssn 

wjm 

TORONTO L'ompiwif 

1058.2 

' 1883 JS 

[ 1068.5 

1 068. 4] 1065.5 (51/3) | 

988.2 (30/lj 

1487/!) 

(£di4«9)[(2S/4r42) 

J0UARNB8BU&U 

liolit 

loiiu-irtaia 

203.4 
203.8 | 

20SJ 

204.8 

! 10oJ. 205. l! 21B.7 (1/2) 

I 202.7] 188.61 214.4 (4/1) 

195JJ !2WS) 
134-3 |L3/3) 


’ Hh-i*. 'ii iiyie* .-tMiikiwi *T>tni Amiu-o >* 


Jim . 31 1 Urn-. 24 • Mar. 1? Year a^r. lapprm.) 



6.16 6.16 • 6.D6 


4.87 

STANDARD AND fOOKS 


1978 

^iOLii t nmpl tat a 


A 51 : 30 J 29 I 28 t .27 • Hltth 

law 

High | Lun 

; 1 n1n4/n - 

'C.NII|ll>llf j 

97.20' 98.02 98.24 38.48i 69.35' B7.S5 1 703-22 
• , • • ! (VL) 

88.46 88.21 88.41 09J64' 99.6^ 89.87: 95JH 
i ; ti/i/i 

35.52 

W/Jl 

Ut.iU 

Gift 

134.64 J 5.52 
lll/li75il tsmi&l 
125.06 1 4.40 
l.ll»l/7h|i Ii***] 


■ April Prev- 
i 3 ; ioii« 


1STC I 1978 
High i- Low 


April 


Pre- i 1978 I 1978 
i vimi* l Hl*h I Law 


Australia!*' 4 t 8 *l 4 b 4 J» 

Belgium I'D 94 . 89 . 94.90 

i Denmark*’* 89.07 j 95.74 

France (++> 612 j El.B 

GennaayftJ) 1 796.4 1 793.8 ; 812.7 i 788.2 

, 1 (10/8) j (4/D 

Holland (Si-)- 76.4 1 77 J) B2.1 : 76.4 


479.45 i 441.19 
: (4/1) ! I 1/5) 
94.89 s 90.45 
; (3/4) i (184) 
1 98.13' 94J3U 
• (9/1/1 ' «/2) 

I t»Lo i 47 j8 
(2Dti) i (3(2) 


Spain Wil 

Sweden tei 

SwiexarPdl/ 

364 A4| 
K93.B ! 

| 9A99 

(10.li 
3+4 £4 
(3,4.1 
323.7 
rl4«l 

&IJX 

(17/3/ 

325.74 

(5/1) 

280.4 

(10/3) 

285.1 

Indices and base dates tali bane values | 



J Mar. 23 j 

Mur. 22 | 

[ Man-fa 16 (Year (approx.) 

Ini. hv. nel-l i 

; 6.46 1 

5.46 

5.47 j 4.47 

in i. i* b ItMti,, 

! 8 ' 4S 1 

8.48 

8.43 j 10.87 

fa'ii : ••■■ivi. ("in i i ie> ' 

! 8.25 ; 

8.15 

8.16 1 7.74 


Hong Kan® • 441.54 449 . 44 1 

e 4 ) i i 

Italv (■:;). 60.57 ( 60.76 ■ 


, (10(2) : (3(4) 

I 451.64 i 283.44 
I (5/4) ] il3(ll 
• 63^5 I 65.40 
(6(3) ! JIO/I) 
Japan fai 406.21 402.01 403 07 . 364/34 
^ i . ! 11-4. I (4/1) 

291.25 . 262.00 

•3-4) l (9/U 


Singapore : 291J8& 1 291-SB - 

(/» I l 


100 except NYSE All Common - SO 
Standards and Poors — 10 and Toronto 
300-1.000, the Ian named based on IPToi 
t Excluding bonds. 1 400 Industrials 
9 400 Inds.. 40 Utilities. 40 Pina nee arm 
30 Transport. i3> Sydney All Ord 
Hl> Belgian SB 31/1 2/0 i—> Copenhagen 

SE Ul/73 • ittl Paris Bourse 1961 
m> CommerttbanR Dec.. 1953. (99) Amster 
dam. Industrial 1970 (tin) Hang Sent 
Bank 31/7/04 mill Milan in/73. >ai Tokyo 
New SE 4/l/BS ib> Straits Times 100S 
/<-> Cfafi" '</t Nattrta SB W'VISn—hiuh 
id) Stockholm Industrial 1/1/38. (J) Swiss 
Bank Corp. iu) Unavailable. 


OVERSEAS SHARE INFORMATION 


NEW YORK 


Si- 


A). HI 
9 


II ir. 

51 


Xarf- fall's 

|.inr«-<'»iapli ..., 

I- w I me A I a-,; 

. p mill. -Is ; 

in if A /'Wf min mi 
•in 

(cult -ii \ Lwti.. 

Willivn » I’.iuim ! 
Iieil Client inti-j 
in* I -k-'n*. 

II- (-IliiillWi^,..' 

UAX : 

lion, la Hlw....l 

net. An line ( 

ner. Uiainfa 
uer. UitraUml 

wr. Call 

uer. Vy-iumiiMl' 
nar. bleu. Ifaii 
ner. K*(nw...l 
ner. HuiifaPnat 
ner. Melius ... 
uei. U>4urn .... 
iiL-r. JiL Ohs.. 
ner. Uxivfai'l.. 

iKi.Mwia 

ner. Tel. \ fe-.} 

netek - 


Inn H>*.-I>iii|!.j 
■ ■neei i+»*rl)..j 
Mr XI Wi 

ne-H Uli | 

iu - 1 

«nu(i)li_ ' 

Itii.-lillenl 

< Uk I n 


Ann Pn.-'tih-t*...,- 
Itrol (i** Liein ... 
iVlllK Acipri 
Knukeix l'r .A.Y.- 

UirierlHi 

Its »tei a 'lr.iveitoi..j 
BeHtll.-e Final.-..' 
ISfvi-JuUi -HeiiHini! 

Ueli A Unue 

•beuliN ' 

lleiiguel i.Vhk ' I).- 
Betiiielwin Mwi. 
bLii-S i Uix-ker . 
U"emg 

1-n^e Ca-i.-n-lM 

lUMMI ' 

h-'rij Wninei 

lnnmlT I'll I 

Krnumoi 'A- J 

BiiMin )Urrs.....| 
Hnt. PUL. AUK... 1 

Hnrkuai (iiln.. | 
linniaWH.-k j 

BiK-rrui brie. i 

Wltilil ; 

Bwotfa Wau-ii.... 1 
Hurl in- lull Mini; 

Hum m^lin I 

CnmjiNn S-ni).... 
Chim-IIsii Peeifli. . 

l.'llUl- lfa'K(lilJ.4l..' 

I'nriiatluii 

C'+rner J. Uvuers 
r.arter .. 

(tuei-pi 1 arfi-mS- 
l aa 

I '■.iniittf-- L-irim... 
t eiili-n.. X IV 

I'citiiniee 1 ■ 

(.1..— nn Air- hill., 
OunelLiiiiuituiii 
Ciieliil.il> Uk. A 9 
t.'liew*iirjji Pnil.l 

I I le-'-lL- Si -loin. 

< 'til nm» Unripe...! 
i-niunn(io\ .... 

Clin - ->ei 

linennu 1 

l in ■. Mi-n mil,. 

(-JllL-UtV 

nue-Jenie... 

I III llltiMIIIV.. 
V-tt Cine 

LoiKt Palm .) 

L i ii in Alkumiiel 
tt-Jiiinlna flu....' 

C'liiumlitu I’ii-i... ’ 

C-iin.ln-c'n.Qi.Viii 
OjnitmstK'U Ku-.-J 
L.miPiratMiii hu..j 
Ciu'n'tli Eihm.uP 
C.un’wTh Hu Ki-.J 
Ci mi m. twteiiue. 1 
Cnniput*^S ieu »i 

1 '■•iint. Lite liihm 

(min 

(A in. kali-xiu >.I 
C'liivri fuvli- 

C" Hl-Hjl N*(. («>«• . 

Vili-Himer Sw'fl 
C'HiMnemai Urji. 
imunentai U11. ! 
I'lvtinaiiiii 7 j 
('mikiii Until..;.. - 
(Juuper todua 4 


64Je / 
1 / 

. 

; 

3Bifl 
ioU 1 
lSag I 

361„ | 
20 
25sa 
34 . 

tiSlf \ 

9iS . 

45 is 
a 83-1 
o7) 4 
85 

83Ja 
5148 ; 
e7i 4 
21 lg 
-* 7 a 
4Z3{i 
36>4 . 

53i 9 

G> 
5048 
I 6 I 4 
HOOQ 
(2 
26 
81 (3 

27 

. Ofa 
10 >s 
18'a 
l7js 
4S 14 
a'/i-j 
9 

883s 

465e 
93 
22 U 
553fl 

28 
56 1 9 
2334 
3540 
IS14 
34 i s • 

3 

2 ' 
15-ib 
33 fa 
2 oisi 
ZHI* 

a? fa 

nu 

141] 

29 fa 
liia 
28 1 * 1 
1 « 1 ; I 

i7fa ; 
ad ig 

07 43 . 
58 fa j 
a *fa 
14/a , 

11 ! 
k4-fa ; 

lb • 
47l 9 . 

46 

3-340 , 

I 1 B I 
193] : 
314 8 
18)3 I 
SB 
J42J0 
30(4 

^<84? 
18 
Ufa 
u 4a 
2348 • 
20m 

47 fa 

13 -fa ; 

37s« . 

197a ! 

II ig . 
k7 i, I 
16 >8 
lbfa ; 
3548 I 
Wl* 
X-i Jb ' 

a fa j 

3c fa 
10 >a I 
44t fl • 

SO i 

ii 3 ,' 8 5 

Jrlj . 

3968 ; 
aa is 
291s 
25fa ; 
1 fa 
i4Ia 
43 1 8 , 


nbfa 
17 fa 

34 J 4 
25 fa 
4Zfa 
*3 fa 
39 fa 
lo’b 
ltifa 
57 
2u.fa 
25 fa 
34fa 
25i* 

10 fa 
456a 
59 
37 fa 

35 
235a 
421a 
28 
21'a 

5 

425a 

465a 

52 

bUt 

50i» 

lbfa 

25 fa 

12aa 

2058 

3059 

27 
21 fa 

11 

19 

a7Se 

45 7 B 
SB 
8fa 
23fa 
463, 

23 fa 

SZbg 

35fa 

28 
367 B 

ajfa 

36fa 

iei 4 

344a 

4 

2Ufa 

& 
2ofa 
2 D 5b 
28 

l V* 

14fa 
29 fa 

l-*fa 
28 
141, 
IB fa 
43 fa 
afa 
37 
SB7g 
a2As 

lal B 

11 

251, 

114g 

16 fa 

474a 

4660 

474, 

la 64 
20fa 
=2 fa 
Si9fa 
oBun 
326a 

aOfa 

48 

1640 

Ufa 

“•fa 

23,0 

2Qfa 

-*7fa 
13 fa 
*7/n 

20 fa 
11 
2b 
161* 
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3354 
144a 

.37 1 3 
2 fa 
3b fa 
lOfa 
*(47 9 

SOjfl 

Ss5i| 

43 J* 

39fa 

24 
29J* 
2654 
1--/6 
244* 

44 


Stm-k 


J- April. ; 'Her. 
1 5 31 


^•4111114 ti 44- 
CPC I Ill'll l II HIM 1 

.'nuie .j 

ker.\sl 

. 'in'iiXe ieil« I . 

-- llllllll rl| bill’. III. I 

•.'ur|.\Vt-iii|ii | 

1X111 • 

Dirl I iiiliiM 1 let.. 

1 teen* 

He M'Hiie 

Lie- 1 1 Min I 

■Jen leant lutsu ...( 
uetniit hilivin...| 

iluniiiDiislMniiki 

Uiuta|iliuiig } 

l)ii>im- tfauipb.-.; 

(iiwtei iIViiij 

Duver Cim-|HI. l 

Ui-ii Clienumi....' 
Dram 


45fa • H&fa 
-•0 40 fa 

28 fa . 28fa 
aa&8 I 2a5a 
al7g Alfa 
cbfa 1 354a 
18 | 17fa 


Z.tB 
a85fl 
25 
2ifa 
8 fa 
17fa 
lufa 
23fa 
Ufa 
387 a 
also 
38 ’k 
<.2Tg 
fcU 


cS 
afl 
kb fa 
2aaa 
8fa 
171, 
lefa 
23 fa 
laag 
394b 
324e 
89 fa 
25fa 





Uu Pent. i 

It 1 

lulfa 

Llymulmtuati no-.. 

I6Se 

! 163* 

Ha me Hu-nei J 

103* 

183* 

Hart .Vinilies ! 


7fa 

ii«»inuui Kialax..: 

417a 

48)* 


543* . 

i 334* 

S. U. A. Ii 

£0fa | 

20 63 

a I'wi Nil. (Hu 

I4aa 

15 

Kilra 

30 

30 

Aiiierei.fi tvieiim: 


alVfl 

.Miierv Airrr'iiTl.i; 

a. fa : 

o7ia 




...O.i i 

2t 9 ; 

■ 8*a 

b'liuvlrai'i ! 

24 

| 23fa 

rjvnuini,-. 

87 







4 Sa . 

H4i* 

Vair bti.l La. m-re. 

«.7l0 : 

28 U 

tel. Det*. Hiures 

a**S0 

an fa 

i ireaiinie Tire....- 

141. 

MU 

ri{. A«(. Hiwtrei.' 

HtW»* 

KtJi 

r’.exi Van 1 

lBfa 

1910 

Miuutote , 

81/0 


t'lrei.in t\iwer..... 

8950 

29 fa 

I’iiiur 

o3 

32 ■* 

F.M.l.._ 


Finn Aitn.u 

4bfa 


Foreininl Uek....- 

17fa 

17og 

Krialnnii — 

32 ns 

oi 

rraukam Mint.... 


(4* 

r'nevimri Miiiera 

191* 

i 195a 

* niehaul 

26 

i fc6l S 


1030 

1 105* 

.i.A.F 1 

ll‘B 

‘ U40 

iituueu j 

37 

37 

• en. A mil. Im... 

vi* 

1 950 

U.A.'I.A • 

24 

1 2450 


1-S0 

i Wfa 

lien. DjinaniUA.. ( 

43fa 

1 431= 

ben. UieutTu. 

46 

i 465. 

be) lent- ri*nJ»-.. 

873, 

1 28'U 

■ j vuerw Illlih.... 

26/ a 

I 27 

Oeiiera' Muiura..,; 

bOfa 

i 61fa 

• en. Pnii. L'lii — 

193* 

! 19 1. 

■.icii. a igtnu... 

2+ fa 

1 246a 

•en / Tel. Klerr+...' 

295a 

294* 

■ ieii. lyre 

24 

1 24(0 

(•eiNSNAI 

71* 

; 7 50 

Lienrgia I'leUk 1 ... 

24 1, 

241* 

trolly Ui 

156 

| 169 


JllHfMC I 

..iundn. h ; 

.■•>11 mi 'I i re J 

l.i'*M"»l 1 

■ n.«W.II | 

'it. AiwiiMiL-leni 
jrl.Anrtli In 41 ... 

• reilMaiii-i [ 

-.■■ill A Weaiem...! 

■jini ui ! 

Mi.itjiirtuii ' 

rtiium It mills*... i 
H-u-mw-Irtui.T „ i 

1 limn Uw|in 1 

rLelim H.J 1 

rtmii-eiii - 1 

Hewlett IH k-r> 

ri-->M-u Inn- 

rl'-mentste 

hr. 1 sev • 

It. over 

U.MpC'urp Aiim.- 
Huustijil N -l.tin 
MuiniPb-Ci cin«i. 

dutWu (B.K.: : 

I.U. lu-limirlei.... 

1*4 

lngeniw 

I niHnri SieH 

[rMlh-u....... I 

Intern mi Bneu>\ 1 

■ an 

Inti. Fisvour*..^. 
mu. risi«v«l>v...l 
Inti. IL 111 A i-liMii' 
Inn. altiltltmtn. : 

l new 

lull. Psirr 

l PCI : 

Ini Kecilher [ 

Inu 1'el. * TH....I 

lit vein 

Imwb Bed ........... 

1C IiilemsMonalJ- 
Jua Wglier„.^.,j 


2610 
1 5* 
17 fa 
otBa 
2ofa 
8 J 4 
24 fa 
13 fa 
1258 
245, 
a Je 
iSfa 
14-fa 
£ *6fa 
,4i* 
2 afa 

o2fa 
l57g 
ad-, 
43 fa 
1 24, 

£7 fa 

24fa 
Ufa 
llTg 
21fa 
38 U 
0146 

3bfa 

13’s 

a ■ 

2361b 

04e 

2056 

50), 

.04, 

J 6 fa 

361* 

kti 

llUg 

28 

313a 
1)26 
28 fa 


■ 275, 
; 1970 

16 fa 
27 

I 2358 

- 86g 

24fa 

- 13fa 

i 1S 

! 2b 
: 57fa 
; 34fa 
; i47 B 
I 47 fa 
I 3 &I 4 
> H5fa 
' b24g 

lot, 
34fa 
1 43fa 
15 
£7fa 
24 fa 
Ufa 
12 fa 
20 fa 
39 
513* 
361* 

131* 

a 

23 5 fa 
£1 
204, 
39 
aifa 
104, 
30 
.8fa 
lOfa 
28fa 
■1 

326a 

Ills 

285* 


Stock 


April 

3 


liilm- Mull vllle...! 
JuUnH-u Jollil-vdj 

J'lUllniM Cm 11 it m J 
Jv>> .UnuulecLiir'! 1 

■'.Hun Cun 

i0i~crAiuiuiiii’in' 
A. 11^1 I n. 1 , 1-1 tie- ■ 

iim e- biee I 

K-i i 

n suite nil..........' 

ikerr lli-iiei-..^,.. 

u i -e We te, 

Aiiniierii Cierk. ‘ 

ikoppe- 

» -ell j 

■i-ifaei Cu> _.j 

Leri St,Bu» 

LJlMivDw.Fixn,...l 

UgpeU Cl rou p... .1 

Lnly (bill i 

Lit 1011 Inilu-L.....' 
Un.-kbentAtrur'ii 
faiueater Imi ._. 
LodK l-'gui) Ltd. 

UHlinlHfl’ famd... 

Lubn^k ....... 

Lucky St uwb ...... 

Che- Y'iiii* ,'wu 

Mwlli.ieu , 

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mm\ 


NEW YORK, April 3. 

hardened against the trend. 
Mediobanca * Tallied slightly after 
the past week’s losses. 

TOKYO— After recent pro- 
nounced strength, share prices 
retreated in moderate trading, 
unsettled by the week-end an- 
nouncement of tighter margin 
trading curbs and the yen’s fresh 
rise in Tokyo. The Nikkei-Dow 
Jones Average came back 41.77 
to 5,430.33, with volume amount- 
ing to 290m. shares. This is the 
first setback after rises in the 

S irevious seven consecutive traci- 
ng days. 

Matsushita Electric, Honda 
Motor, TDK Electronic, Pioneer 
Electronic, Toyota Motor and 
other export-orientated issues 
were prominently lower, 
JOHANNESBURG — Gold shares 
generally improved, . although 
some issues ^turned easier after 
mid-session. Trading was quiet 
with Overseas interest very light 
ERGO rose 15 cents to R5.65. 

HONG KO N G— Mar ket rose 
afresh, but ended below the day’s 
best on profit-taking which set 
in following disappointment with 
Hong Kong Wharf’s results. 
Volume remained relatively high. 

Hong Kong Wharf lost 40 cents 
to $HK16.90, but Hong Kong 
Bank and Hong Kong Land both 
dosed 10 cents higher '. at 
SHK13.70 and SHK7.40 respec- 
tively. Jardine BXatJicson finished 
20 cents down at SHK1S50, 
AUSTRALIA — Markets made 
further headway, with BHp rising 
22 cents to 3A6.02. 

Lend Lease gained 5 rants at 
5A2.45, while Bundabeig, in 
Sugars, added 10 cents at SA3.20. 
Among Banks, BNS Wales 
advanced 8 cents to 3A3J20 and 
ANZ 5 cents to $A2.75. 

In Uraniums, Pan continental 
rose 60 cents to 8A10.70. Queens- 
land Mines 8 cents to 3A1.S8, and 
Kathleen Investments 10 rants to 
SA1.40. Elsewhere in Minings, 
Utah moved ahead S cents to 
SA3.28, Renlson 10 cents to SA5.90, 
and Hamersiey 11 cents to SAL96, 
but Thiess receded 6 cents to 
9A136. 


NOTES : Overseas prices aitown Oetow 
exclude S premium. Belgian dividends 
arc after withhold ins tax 
4 DM30 denom. unless otherwise stated. 
<9 PiasjOO denom. unless otherwise stated. 
4 KrjOff denom. unless otherwise stated. 
4- Fra.500 denom. and Bearer shares 
unless otherwise stated. 9 Ten 30 denom. 
unless otherwise stated, s Price at time 
of suspension, a Florins, b Schillings, 
v Gems, d Dividend after pending rights 
and '’or scrip issue, r .Per share. 1 Francs. 
o Gross, dfv. %. h Assumed diridend after 
scrip and or rights issue, ft Atier local 
taxes, m % tax free, n Francs; including 
U ii line dlv. p Notn. 0 Shore SO lit. ■ Dfv 
and sHeld exclude spodal payment, i Indt- 
caied dlv, u l/noffldal trading, o Minority 
holders only. ,i Merger pending. * Asked. 

Bid. 3 Traded, t Seder, r Assumed, 
ax Ex rights, xd Ex dividend, xc Ex 
scrip issue, sa Ex afl. a Interim since 
increased. 

GERMANY ♦ 


S steadier 


GOLD MARKET 


Continued adverse reaction to 
the record UE. February trade 
deficit prompted further heavy 
selling of the dollar In yester- 
day's foreign exchange market. 
Early dealings saw the Swiss 
franc .-improve to SwJFrsJ^816o 
from Sw.Frs.l-SS on Friday and 
the West German mark to 
DML98&0 against DM2.0065. Ht>w T 
ever. Intervention by the Bunded 
bank appeared to check the -slide 
together with some profit-taking, 
so that mid-day found the -dollar 
above its .worst levels. This 
reversal continued during the 
afternoon and with demand for 
the dollar reviving after - the 
opening of New York markets, it 
finished around the same as its 
dosing levels on Friday, -showing 
a slight gain at DM2.0080 and 
Sw-FrsJJB505. 

Morgan Guaranty’s calculation 
of its trade-weighted average 
depreciation, using noon rates in 
New York, widened 1 slightly to 
6.50 per cent from 6.40 per cent 

Sterling showed small gains 
during the morning, opening at 
5L8630-L8650. By noon the 
pound’s index, using Bank erf Eng- 
land figures, had shown an Im- 
provement to <JLB from Friday's 
close of 61.8. Official help was 
seen in the market, hut with de- 
mand for The dollar increasing 
during the afternoon, sterling 
finished below its best at 8LS675- 
1.8685. still a gain of half a cent 
over the previous close. Its trade 
weighted index also eased to 
finish unchanged at 61.8, while 
the dollar’s index using similar 

Bank of England figures slipped 
to 88 JS from 885. 

Elsewhere the Japanese yen 
improved to a record level of 
Y21S.6 compared with. Y22L25 
previously, while the French 


franc closed narrowly firmer at 
FrsA5625 against Frs.48650. Gold 
The- Krugerrand's premium over, 
its gold content finished un- 
changed in domestic and.- inter- 
national dealings at LOS . pet cent. 


Gold BnUlm. 

(* fine ounce) 

ttows..: 


FRENCH 
FRANC ~ 



MW DSC JAN FEB MAR Affl 


taming fbc*!i 
Aftara'nfix'n 

(fox* Cam... 

domestically 

Krufumad.. 

N’wsav’ciw. 

Old bov’iXD’- 


: April 2. 


S 182-1825* 
91825* -1831a, 
S 182.76 
(£97.415) 
S183/W 
(£97.839) 


81865,-1884, 
(£100-101) 
966-57 
(£29 fa -30 fa) 


SSSff 

<£30- 


l‘AV' 




S183i,.]b, 
6180-1801 
8180.70 * 
(£97flS6n 
5181.60 
(fiS/nflfl) 


SlSSfa-la 

(CWlfa-MB 

555^-575, 

£3031) 

S585*-6oo, 

(£3 Ifa -321 


Gold Cains... 
. ImemofU v) 
Krugerrands 

K'wtjnv'rgna 

Old Sovr’gna 
£80 Marfw.- 


S187fa-169l| 

(£100^-10111 

85644-575* 

(£30-31) 

S555*-575f 

(£30-31) 

|S29 5-297 


S188U-1B 

(£ ID 11,-10, 

!» -673 

ll£30-31) 

8585,-805 


FOREIGN EXCHANGES 


CURRENCY RATES 



BpMM 1 

Drawing 

Rights 

European 
Unit of 
Accoont 

■ 

April'S 

April 3 

Swum* .... 
tlAddbr 

0.664057 

0.677685 

1.24451 

1.27149 

f V*na.ii|jn a _ 

1.41558 

1.44252 

Au*crhi ach ... 

17^303 

18:3069 

Beflfian Iran 

38.8380 

39.6802 

Danish krone. 


6.99634 

Deotacbem'rk 

2.48952 

2.54213 

Dutufa gnnder 

£.66587 

2.72074 

French (ran ■- 

5.64634 

5.76409 

Italian lira.— 

1056.90 

. 1079.74 

Japanew yen. 

m~J546 

277.678 

Norway krone 

6.54301 

6.68579 

rifntin peseta.. 

99.1890 

101.199 

threriUh krone 

— 

5.78259 

■m’wIb* (ram 1 —. 

2.37870 

2.32878 




Marks 

tsssr 

April 3 

*T 

Day* 

Spread 

" ov» 

New Xurt— 
Montreal.... 
Anutentam 

HrnateJBf 

Copen hagon 
Fraokfuitl. 

Lisboa 

Madrid— 

Milan IJ 

i- 

I 1 * 

5 

is 

B 

Ufa 

ijm-unm 

L11S3-S.1SSS 

i.SMJZ 

B7.7268.B5 

HL2B4-HLS8*I 

5-703.76 

76.68-7630 

148.2&-I49-M 

X&k 

42U. 

59.50^/ 

lAaat-v 

78.90-71 

148204 





r- 

Bfa 

Efa 

1 


■"SB 

Stockholm _ 

M4-AB4 

Vienna 

Zurich — . 

26JO-S7.10 

6ja-s.ni 

SSJ&f 

3A5W 


- tRaics slven are for convartflile fa 
Fiducial franc aB.433S.63. 


OTHER MARKETS 


EXCHANGE CROSS-RATES 


April 3“ 

Frankfurt 

Near Hark 

Full 

Unweir 

Lcmdou 

A rant 'a ’in 1 Zunoh 

tranJUutt 
New York... 

Paris 

U rowel? 

Lorulon...... 

Amet'dam^ 
Zarieb- — . 

49.&8G 
106.47 97 
15^963 
A74- * 75J 
106277.02 
+1.B5- 92.02 

2.CO4580 

4531-643 
5L18 23 
U&iSBb 
2.1302 1417 
1.B425 46 

432344.16 

iLflO-06 

GLS7-9Q. 

« 
**1 an ax 

4(X8»4Z7 

6.465 il5 
3.190060 
14.629663 

ssioeo 

i^En+676- 
32922 «E4, 

4.747 767 
L8W0EO 
A482&0126 
08.46 62 

UOlCbOlbfi 
3.4440 4498 

95A3 62 
4058 63 
riL6>^.16 
1456+81 

4.0102 

■554-86.09 

IU 8 9. '-9.16 
3A>54.CO 
447.66 8.16 
17.0209 
3.45i46i 
,16.886-876 


U^J. £ in Toreuto UjL 3=11288-70 t)m« riiiin cents 
Canadian S in Ji'ew T&rk=S7^*-96 i«nia. UjS. R in Uiian 8*9-3060. 
Steriiha in Ulian 1,687 JO-1, 688AL 

EURO-CURRENCY INTEREST RATES* 


Argentina 
Australia J 
Bmzti 
Finland 
Grae»_...t 

Iran 

Ku wnti „ 
Luxennj’rc 

X. Zatlondj 
daudi Aiafa 
amtptriore 
8 . ■Vfrwa.J 

u.». ...... J 

Canada— .. 

Cfl 

U^i, ceni> 


JL 13-52. 13 
7.76-7J8 
.167 -457-68. W7 


1840*1544 


LB8&M.B419 Austria — , 


JI76LIMMD Hiimrt'J JB j 


120-154 

(LUB-iLSM 

se^Ma.eo 


l-81B0.1.85fi» 

.6.68-8.48 


■MHMJJHIjaonnyr 


[1.6355-1.B3892 


Motes Rats 
Aq^jntma.jl® 


flolptn n- 

Unuii 

Canada.— I 




J4.566 Ufa ...... J||r 


J«pan— 


MetberLndl 19 


FDflltfpu.uj 
■pain 


pwiu’UuMU 8.4 


Ud 


87.0VB7J4 /Tupada^J 56 


28J. - 

*8 

Ll 


U 

a.n 

Si 


4K 


U 


L8 


April 3 

Sterling 

LAOSiUaII 

Dollar . 

Uji. Dollar 

Uulrb | Swish 
U uiKlds ; fran> 

W. tromm.n 
mark 

rbfaan term ...j — ' 

f ita)~a notteei — 

Month.—. 650.7 

Threw months, 

dis oiontba.... 7fa.8fa 
One pw. 

7-7fa 
7-1 fa ■ 
7*)-7fa 
730 750 
71*4 
77a4llg 

7-7fa 

7.7fa 

710-750 

730-760 

76a-7fa 

710-810 

47b- 5 fa 
470-610 
47»-afa 
4S+-5 

450 47a 
5-hfa 

ia fa 
fa-fa • 

T > r } 
lu rtf 

i*f'V , 

3fa-3fa 
3fa-3fa 
. 3l*-afa . 
3 fa -3 Be 
3fa-3% 
3fa-33e 


Rale riven (or Arsentifla Is a free 

FORWARD RATES 


One month i Three me 


Euro-French depoxlr rales;- nroday 86-8} per cent..- seven -day 81 - 8 / per cent.; 
one-month 81-Si per cent.; three-month 81-8} per cone; six-month w-Si per cent.; 
ono-year 92-10} per cent. 

Long-term Eurodollar depoatui two yean 8 - 8 } per crat.: three yean Si-Hi per 
cent.; Toor years 81-8} per Cent.; five years 81-8} per cent. 

The folloaisE nominal nues were quoted for London dollar certificates of deposit: 
one-month 7.10-7.20 per cent.: three-month 7-23-7J5 per - eat.: six-month 7-56-7-83 per 
cent.: one- rear 7.04-7.90 per cent. 

“Ratos are nominal calling rales. 

Short-term rates are call for sterling. U.S. dollars anil Canadian do Oars, two 
days’ nonce [or gniidors and Swiss francs.. 


New YiTEL.fiJiS-.O.liexita 40:10 c.pn- 
Mwtnsl Jo.Q5-0.25 c. <Ual0.1S4l.SS 
Aimi'dam 1 ! c, pm- par |S-2o. pm’ 

Brussela...!20-10c. pm 
CpD'nhjtu.i4fa-6l2 ore-dia 
Frankfurt I Ifa-Sj pf. pin 

Lisbon lSO-270 r. dis 

Madrid ....J 10-90 c.Uis 

Uibn 8 -X 6 lire dis 

Oslo J53*-73* ore dis 

.Pari»„^_.lfa-lfa c. dis 
StV'ft ho( m 1 2 fa -ifa ore dis 
Vienna .-.[pair-lO gro dis 
Zurich i£fa-jfa e. pm 


jin^Wow 
Kfa-3I» « 
3&0-55QI 

iso-aooi 

123.32 lia 
164-17* c 
2i«-3faeT 
’■^flared/ 

_ te 

Six-month forward dollar BJS42S 
12-month OJB-0.75C pm. 



Fr tee 

+ •■» 

ran 

Tin 

April 3 

Dm. 

- 

% 


ARti 

89.0 

— U.2 

— 

- 


4tt4 

+ 4 

,18 

1.9 


2H&- 

-0.4 


4.4 


158.1|+a.i 

17 

6.2 

Unyer..— — 

140.71 + 05. 

16 


duyei Hypo 

284.5’ + 1.5 

2o 

3.6 

8aye« Veremriik 

31b 

1 

ao 

3J2 

U‘twlnt.Ned.wrtr 

180 

i-3 

mn 

n 

UOmmerabank — 

23l.7|+0-£ 

C3 



30651+1.5 

19 

3.1 


266 


17 

r-wt 

uentau — — 

163 

! +2 

14 

4.3 


304.7-0-8 

20 

3.3 

ij ns dner bank.... 

2485«di+0.O 

20 

4.0 

Uvi’kwbnO Zero) 

141.1 

-0.3 

4 

1.4 




w n\ 

ri ipw L+n'<l— ... 

>11.0 

-3.5 

12 

6.5 


£&a.5+0.a 

4) 

I *1 

riirf/ch-t - 

130 



16 

— 


46.2-0-1 

4 

4.4 

Jorteu 

120.5 +0.2 

10- 

4.1 

■\itii und a«iz.— 

138 

+ 1 

9 

3.a 

K+nuilt 

309 

+ 4 

20 

3.2 

tuiuihot — 

£14.0+1.5 

2u 

4.8 

K lock ner Dm IOU. 

93.5 —0-3 

— 

— 

hNI) 

175.5+1.5 

U 

3.4 

Krupp... 

98.0 +0.7 

— 

- 

Liihie — 

237 

+ 2 

16 

3.4 


l.buS 


Ufa 

L.3 

Luitbnn-a 

111 

+ 2 

V 

3.£ 

HAM — 

190.0—0.6 

1£ 

4.2 


168.2 + l.a 

14 



aia.o— o.a 

lu 

Rrj 

iluueti-iiei- Kiark 

510 

- L 

EO 

l|3 

.k’.vkenruuu 

113.5 +0.6 

Eafl 

— 


111 

+ 1 

— 

— 


188.5 +0.6 

16 

4.2 

1 ««-firniiy 

243 

+ 1 


4.1 

1 

281.0+0.5 

lb 

2.9 


248 

1. ........ 

17 

0.4 

1 - en A.ti..— . 

1»7.5 +0.5 

11 

4.0 


175.3 

+ 1.0 

14 

4. 

• Bb.\ 

106.71 + U.2 

1£ 

3. / 

Herein- 5 IV.-,) ■ k 

308 

.-+£ 

18 

2.9 

Vnik- n iuoii. 

214.3-0.7 

u- 

£.a 

AMSTERDAM 






l Price 

C+oe 

, Dra.-nd. 

April 3 

|Frt_ 

\ ~ 

* 

a 

Abu hi (FI.2U) 

103.0 + 1.0 

s21 

3.5 

Ak/utFiJO) 

25.8' + U.4 

— 

— 

Alpem UnklF'.lOt 

345.5;— 2.0 

A 23.1 

7.0 

MlbV 1 F 1 .IQ). — 

79.6-U.5 

,\»44 

5,b 

Amrvfronk (FI 50 

73.5ri|-0.2 

£3.6 

b.l 

Jijenkorr— 

81.0, + OJE 

23 

5.7 

JoHaV eel 'm(K.lL 

104.0;— 1.6 

70 

b.7 

•rurbrmTeiterode 

6 +. 61 — 0.1 

£5 

7.7 


272 

l—l 



bnomM.V.umror 

; 146.6!— 0.4 

32.6 

4.2 



1 

94.( 

■ TT 


36.11 

82 

6.u 


99. 5 >-3.0 

14 

3.6 


[ £3.31+0.2 

zo.se 

6.6 


21.5+u.l 

12 

6.5 

| iv-L.il. IF .IUU)_ 

127.2 — 0.Z 

— 


1 mi Mullen teO 

39.1 

-0.9 

18 

9.2 


35J0--.5 

10 

2.6 


109.2' + oA 

46.2 

4.3 


54.8—0.4 

2T 

7.6 


187 


22 

Eu 

Uje (FI JU)_ 

lSJ^I-1^ 

TTT! 


van Uniiooren.— 

130.51-0.5 

18 

6.1 

iWkhuul (Fi^Ah... 

35.51- ,2 

31 

11.7 

riblili* (Fi.10) 

26.31-0.3 

21 

b.4 

KjiiOi-bVerlK'.lUt 

71.6-0.5 

16 

— 

iteheco(Fl50) 

158.6*0 ]— O.b 

A2ii 

8.1 

itoHuco/FijUi 

11 6.51 -0.5 





14 

5 4 


137.6 

-1.3 

A 60 

7.8 

iBven/Hjrc 

H4D.t 

+0.8 

19 

7jj 

->teviu Urj. (F ^U) 

136.C 

-0.3 

97/1 

4.1 

Lo*>r> Fae.liuli.6 

104.E 

1—1.5 

30 

0.7 

u nt lover t Ki^fO) 

118. C 

-1.1 

Vll.B 

7.1 

‘'il/InvN'eH.Inf/SJ 

37 

— 1 

BO 

2,3 

•VnnilanMii. Haim 

417 

-£.8 

33 

3^ 

COPENHAGEN * 





Price 


Blv./Yli. 

April 3 , 

Krtme> 


«b 1 v 

Alli>vrHiauiHe>i.+.. 1 

I45fa 

+ fa 

11 

7.6 

■ in m’alr 11 . tn. • 

441 fa 


lb 

34 

J+uske ifaun, | 

l£63i,+ fa 

12 

9.S 


Zllfaid 





HiauslHiiUiL'o ! 

iat»i*i+fa 

13 

10.3 

rot. Byxusner 

333 

-s 

13 

4.6 

rue, Hipir.......^.. 


8 

9.3 

duHlrlibuili 

l£7faas 




j.A'thuH.thrM/) 

£58 

—a 

12 

4.2 

•ui) K-4 k,;.. 

2o7 

+ 1 

12 

4,7 

Jnetabnk^..^,,,.. 

82 fa 

-1 



FrlvMtMOIl.. M ., n 

laas 

+ )* 

11 

8.3 

■ -rovidobank 

138i*« 

+ '* 

11 

7.9 

7«ph. tteraodiien. 

475 

+ lfa 

12 


superhw 

1 

184 fa 1 


12 

6.5 

VIENNA 


( t'rKM i -r Mr 

Apnli 1 'i j - 


•j- ulibnioLa-l...., 
c'crlumoaei 

■erema I 

iempenl 

~ <e?r Dnlnnej _.| 
•di Miiznemi., 


35u > 

263 j+3 
576 -1 
90 1-4 
181 !-l 

845 ^-1 




Yl.1. 

% 

2 3 
3.4 

а. 5 

ila 

б. 8 


f. 


j TOKYO 1 


•Prices 

+ OI 

Dlv 

lYld. 

April 3 

Yen 

— 

* 

1 a. 

,NLbl Ul+ar 

340 

—3 

14 

2.1 

Canua 

473 

-V 

12 

1.3 


650 

-15 

£5 

£.3 

■_ hinon .... 

355 


£0 

2 Jd 

Lfai Nippon Frln 

b37 

-8 

18 

1.7 


546 

2a3 

-11 

-3 


1.4 

2.8 

Hitachi - — — - 

12 

Hoad* Motor*-.... 

569 

—7 

18 

1.6 

HoUnC F>JO<l.__... 

1^30 

-10 

db 

1.4 

Hob 

Ito-Yiikadu 

1 £36 
i 1.29J 

1 olB 
£.7.0 

-6 
— 20 
+ 8 

12 

30 

13 

2.5 

1.2 

1.1 

7.A.L. 

tvanxai JSiect, Fw 1,160 

+ 10 

10 

4.3 

KuiuabHi 

335 

-9 

IB 

2.7 


290 

el 





K.nmi-lVniiile... 

3.680 

-70 

5b 

0.4 

.Umsushiu I 11 . 1 ... 

696 

—23 

20 

1.4 

H>i«iiU«)ii Hunk-. 
Aiil^iilaiKln Hertvy 



10 


142 

-3 

12 

4.2 

illtoUDlKin C-ntl'.. 

4:B 

—4 

15 

1.4 


345 

— S 

14 

2.0 


554 

-1 

20 

1.8 

> i|+*.a Uenso 

1.180 

-10 

15 

O.e 

Ni|ipou Hbmpan.. 

670 

-9 

12 

0.8 

A >MD Uruorv..... 

795 

+ 11 

16 

1.0 

r'lonrer 

1,510 

—40 

48 

1.8 


£40 

— 1 

12 

£.a 


850 

-6 

30 

20 

1.8 




1.710 

—10 

40 

1.2 

LHinhn Mamie 

£sO 

-4 

11 

£.2 

Luba!* t hemioai 


-s 

Id 

i.y 

ivjii) 

120 


10 

4.2 

lukw VI it rule. 

ail 

— 19 

u 

1.1 

11 AW Ille«r1 F.i«‘. 

1.14 j 

+ 10 

u 

5.5 

1 u»VO rant'll 

325 

-14 

12 

1.8 

10 k .VO Mjt^uin... 
tUltL\ — 






US 

‘—3 

10 

4.1 

1 Ill'll, Ml. )•.!■. 

895 

-8 

20 

1.1 

Source Nlkko SecurUtea. Tokyo 


BRUSSELS/LUXEMBOURG 






Uivv 


A pril 3 

Pncv 

+ nr 

F re. 

Yid_ 

Fra. 


Net 

l 

Arbed — 

2,220 

B5H 




1 * 4 . brx. Lumii 

L.4vG 

— 4 

60 

4.3 

Helen i'B" 

1.780 


112 

b.6 

U.H.R. L+ment™ 

1.246 

-24 

90 

7JZ 

Ooriterii ........... 

351 

+ 2 

— 



KbBb 

2.460 

+ 10 

177 

7J5 

Uiectrobei ........ 

6.130 

+ 10 

430 

7.0 

rtdjriqae A’at ..... 
.i-li. Inno-Um.... 

2.363 


170 

7.2 

1.960 

+46 

130 

66 




80 

6.7 

Hoboeen ........... 

2,145 

-uJ U 

170 

7.9 




142 


Krerileb«ak_ 

16.440 

+ 20 

266 

3.6 

ut Kovaie Hetge. 

5.620 

+ 20 

50b 

a.S 

2,370 


S8-H 

3.4 

I^JUllllOl! 

S.H3J 

-10 

174 

4.a 

*»■ Uen Hruuint'. 

2.940 

45 

£04 

6.9 


2.U..5 

+3 

140 

6.9 


3,250 

+ 1U 

215 

fc.b 

■0 vny - 

2.480 

+ 10 

A SB® 

6.1 

Lraellm ))«*■* 

2.C.80 

+ 3 

162 

6.3 

Ul-t 

870 

-16 

— 



ri ijimi rwramppi 

716 

+ 22 

60 

8.4 

' lelue llnntagne 

1.354 

+ 18 

mM 

7.4 

SWITZERLAND ® 


Frfae 

+ » 

UlT. 

Yi.i. 

April 3 

Fra. 


% 

t 

AumimuDi 

1.225 

—5 

8 

1.6 

HBG'A* 

1.640 

-5 

IO 

5.0 

i-iba 0 «))(>-( Fr. iOO 

1.220 

-30 

22 

1.8 

Ua. Ft. Uert-~ 

883 

-5 

22 

£.4 

Du. lies, 

&S8 

+2 

£2 

5.3 

re.111 ■ ul^e__..2.400 

+ 10 

16 

3.3 



10 

5.1 


660 

-10 

6 

6.8 

Hon man PfUen . 

90.250 

— ouO 



- Du. laraa.i) 


— 50 
— 50 

rtf 


Intertorai u 

3.550 

20 


Jcimotl (Fr.KXD... 

1.400 

+ 10 

£0 


■Xestic <Fr. loO) ... 

3.265 

—5 

a85.fi 

Z.6 

lAx Keg 

2.320 

-25 

m85.i 

3.7 

P® .-ill 

2,170 

-5 

tlb 

iua 


*80 

+ 1 

13 

6.4 


3.7u0 






2.6 

1.0 


' 303 


9 


332 

-3 

14 

4.0 


810 

+ 2 

1.67 

4.0 


963 

-8 

10 

2.8 

■*wiw ifle.F.2bOi,.| 

4,550 

+80 

40 

ZJC 

Union Bnnk—.. u .l 

3,190 

-b 

20 

6,1 

1 




MILAN 


■WEI 

mi 

Jiv.'Y.i 1 

April3 

■sail 

la 

Ure 

i 

A MIC. 

98^3 

410.6 

1.930 

-x.m 

-9.5 

-15 

- 


JHSUfa) 

iflat 

iso 

7.7 


U637 

-12 

lay 

9.2 

r'lnrkler 

73 

+ 0.25 




10.936 

+ 135 

£JU 

1.8 

Icnlakter 

129 

32,2501 

+ 2.75 



UeriloUuiai ..... 

+50 

IJ206 

3.7 

Routed ison — 

UlireUi Frlv 

firelli & Co. ... Ml 
Pirelli Spa 

150.5 

845 

3,170 

996 

-5.7B 
— 5 

150 

80 

6.0 

-19 

ao 

ifaiaViteCn 

503 

-10. 



, 1 


AUSTRALIA 


Ape. 3 


VCM I L (20 oeirt) . ... 

U-n<w Australia.^ 

V leu Mul-i-'nlu- liulu >1 

VmpAI bxploratirin 

Vnipo- Ketrnieum 

\k-oc. Mineral 


Aa-d. f K W 


v»«c. Fuip Faper SI... — -4 

A-roc.Uoa. Inrlu^sne^. | 

Vuri. Fuuruiauon lnve»i_i 

V.N.I 

-\ 1 »1im.-o. I 

Au-t. On 4 ! 

uine Meta> 1 j 

n?umiinvtlle Copper— I 

oroteo Hut Fmpretarv— j 
dH South-, — J. 

v'MPtan Untiwi Brevo-ry.... 

— J-t-Difr— 

-fall (rill - I 

i/oii-. OamtieM An* I 

uiniainer(Sl) ...• 

-.-< 1 ( 1 X 1 dc Him 1nin_... | 

.4Mtam AuMie'la — -1 

Dun (op HulihMtS 1] ; 

UiCOK.^. l 


n’tiei 3nt((i ^ 

b.Z. liiiimnrle* - 

■ •tn. FrxipenV' Truitt.— — 
Hnmmucv 

>->. -J. Aaviniln, 

uiiet-Uippei 

1 tummy-, lihlli9lnee.—~... 
IniHtH I iteviil>.. n .............. 

l4fnu«r<l Oil 

ilefnti Lk-pinrariiMi.... 

»itU H'dllllltfr — 

■I 1 ei hnnin'i hi .... 

'tw. ..... 

>1 lh mot lnteriiiii!iitiK>...- 

*-nti Bioaen 

fakUrt.ige— - — -i 

n> "eareh ■■■-■ .............I 

Jiwr Ux | Murat kin I 

r'luuuer Cou. rete — i 

Hu Kui A Cnitmu.., 

8. (-•. Tleigfa 

Mtitblaul Jliniu*;...-™... 
twab iSl> 

W*i tuns... ........... 

WeMem -Uininjf iru wiaij 

WiTolwnrthB 


t0.63 

12.23 

tl-03 

fU.7b 

tO.82 

11.06 

tl.66 

JJ.92 

tl.ob 

ta4i 

tass 

n.oo 

f 1.14 
(6.02 
-tu.8S 
T1.77 
tl.90 
12.30 
(2.60 
( 2.11 
12.0B 
TL30 
(l.a2 
:i.ij 

fl -88 

tl^l 

tl-46 

(1-96 

(0.09 

(£.05 

(0.20 

(1.16 

11.17 
(0.23 
(0.16 
*1-88 
*1.59 
Yid.&l 
(0.c6 
f l.u6 
(1.69 
tU.Od 
( J.15 
1 1.47 
ffl.o 1 
10.62 

10.18 
11.68 
(0.83 
tl~2S 
11.60 


U.iM 

E O.ul 

iiM 

fafiJll 

*ijB 

+oi"i 

\+0M 


1+1) _S2 
I+j.Dd 

!— 0.1 2 
1+0.02 
l-o.oi 

1+6.05 

1+0.01 

-0.L2 

-O.iZ 

-0J.5 

-0.t>2 
+665 
+D.04 
+ 0.11 
+0.61 
-6.1 2 
+0.03 
- 0.12 
1-0.09 

l+oi 

+II.05 

--J.0I 

Lj’iii 


-0.01 

i-).iU 

l 

;-4j8 

]+o!oi 

, ! MUM 


BRAZIL 


I Phv* l + •>* 
Apr. 3 [ x. rur [ — 


V-. m: 

Banco do Uracil.. 

4ll.u I I4U ■ ,t ... 

iMi-ji. Uiiii-im u 1 

uijai Amur. Of -J 
r'umitiraa FF^,... 

•’ireillOF-^. 

«<uza urur OP..,.' 

l-n.p 

Vli> KJ- Drawl' I 



tJSQ 

4.16 

7.25 

1.62 


L40 
2.54 

Lin ..... 

1.89 -0.D18.li 
3.15 -D.DfiD^t 
3.08 — O.IZO.K 
+ -Mw.il 

+o.aw.8i 

-.IdJh. 


vol Cr^S.+ro, Shares 388m. 
Source:. Rio. dc Janehn SE. 


OSLO 


April 5 


OWTVU 
■wrregaanl..^..... 

^redltbanh 

Kftmu 


areditiM-en ...... 

'or- a Hyrimkr.ti 
'('■rehninil 


fHrr" 1 4 - ut Dfv 
Kroner i — % 


90 —1 
6O.0+2.5 
106.0 -OJ 
275-0,+a.s 
103 —1 . 
185.00 -1J» 
87A,— 


JOHANNESBURG 

MINES 

Aflril 3 

Anglo American CorptL... 

Charter Coned. 

Bast Driefomeia — 

Elstmrx ... — 

Harmony 


Rand 

5.87 

2JH 

U.SS 

3.03 

5.73xd 

ta.atei 

(730 
1 A3 
13.Z5xd 


Kinross - 

Kloof 

Rusenhurg Piathiom . 

S*. Helena 

Sonthvaal T -5* 

Cold Fields SA ....... 19.68 

Union Corporalinn 4-w 

De Beers DM. 

Blyvooroltrlcfat — 545 

East Rand Pty. K.I 8 

Free State Oedoid (37.M 

President Brand lflA* 

President Stem J** 

SUflomeln — — 1 3U3 

Wellwin ..... 4A8 

West Drtcfonteln — — WO^ 

Western Holdings — 39-0® 

Western Deep ....... 12-» 


PARIS 


April 3 


Keute 1 *. 

AiriqueOii’li't' 1 

+ >r ... 

Aquibilne — 


■u+utuea. - 

U.5.N- Oereais — | 
-.anefoui 


w.1.1. Annie*. 

-ie Uoa-aireL... 
w'lUtl U*t1tR..... 

Jreut Com Fr* * 

■-'reuse* Lpire___| 

Oumw 

r>. PetroJes— ... 

Uen. Uohlonl*.. 

■metal. 

i<muu0 Bare<.„. 

Utatge 

i.Oea> 

US(tan.i — 

Nal^u Fhenbc. 
•iiche'in 
Aluei UenneteV.. 
•Uhi.iiuix - 
Pin in 


Prk-e 

fra. 


INDUSTRIALS 

AECI : i-JUl 

Angio-Amer. Industrial — S-® 

(U5 

* 1 Carrie Finance J-B- 

De Beers Industrial (8.60 

Edsare Consd. inv. L» 

Edgars Stores tW-M 

Erer Ready SA fL® 

Federate Vtflcsbelegslngs . i.« 

Creatermans Slores 
Guardian Assurance ISA) 

Haletts 

LTA — 

McCarthy Rodway 

NedBank - 

OK Bazaars .... 

Premier Mining — ... — .. 

Pretoria Cement 

Pro tea Holdings 

Rand Mines Properties - 
Rembrandt Group 
Retro 


I'l-clilney — 

I'emod-KJcanl™ 
Peuweot -Citroen. 
facUiiu. 


■Cadio feebn>Qu+. 

•to iouw _ 
iteoue Pouien 

•<■ 

'Hi U.WURb> — 


(e eme unique— 
■buAMHI UlMl-il, 
u How 


717 ;+6 1 4fa| O.b 

392.5;+ 12^ 21.15} 5.4 
BcD :-~l j 16 
373.6'-5.4 i * 

436 -4 |1/.; 

60S I — 32 'dIJ 
417.0; + L.9 j St. 

1,057 j— H9 I 7C 
. a a4.2 —2.3 — 

1.060 ] — 65 
331 -18 
4A7JJ- 6.8 
■123 |+7 

00 . 7 +0.7 
614 j-l 
116.1^-2.9 
ISd.* + 0.3 

a9.1;— a7 
98.5 ‘—3.5 
lu2-Bi+ L7 
568 1—17 
1.681 j + 1. 

1.060 1—38 
1,320 ; — 20 

430 |— a 
176 i—lO.Sl 

lbB.O-'+O.g 

84.9!+ 0.9 
£33^:-2.6 
343 1-4 
163.9-0.4 
442 
684 
€9 

1+6-8,'+ 1.3 
1,6991—21 
265 {-1 
735 —11 
1q2 —7 
22 1—1 




Sage Holdings 

SAP PI 

C. C. Smith Sugar 

Sorec ■ 

SA Breweries . — 

Threr Oats A NutL MU:-.. 
On Usee 


1.70 

LSOZd 

(LAS 

0. 65 
1M 
5 30 
600 
—80 
1.87 
LSD 

1SJ0 

A34 

1. ti 
1.SB - 
0.10 
0.52 
132 
9.13 
U» 


Securities Rand 


(Discount of 31.1%) 


SPAIN « 
March 31 
Aslind. 


STOCKHOLM 



1ESJ 

m 

B2Z 

031 

April 3 


fea 

ca 

m 

Hi A At- iter^W).. 

. 1/9 

+1 

o.b 

5.1 

V laLivaruiKw* 

156 

— 1 - 

5 

3.2 

AibA(Kr.oO)..... 

83 r8«l 

+0^ 

a 

b.O 

Alias Cnp«(Kri(F 

110 

+1 

6 

6.0 

PillQniii 

92 

-1 

4 

4.9 

li rfor» 

120 

-B 

«' 

to 

33 

(tel in Wat. 

923 

+ 1 

4.4 


164 


• a 

4.7 


233 


a 

6,4 

r'acer ta-_..-«.. 

114 

-1- 

4 

3.8 


64A-+1.5 

•— 



305al| + S 

16 

&-3 


130 

+ 5 

6 

b.l 


72.51+2.5 

aa 

0.0 


2*5 I— 1 

5.03 

2.3 


■ 78 



m 


141m 


8 

l-k-1 

,T.ui.f0t(k-f8'Kr% 

■ 84.0j+aS 
67i!+aB. 

- -6 

im 

6.9 

Volvo ikr.-aOL.... 

75.3;+ L5 

6) 

7.9 


Banco Bilbao --- - - 
Banco Atiunttco (LOWj 

Hancn Centra) 

Run Exterior — — 

Hancn General — 

Banco Granada tLI®« 

Banco Hlspano ■ — 

Hancn Ind- Cut O.W) 

R. Iwl, Medlierraneo... 

Hancn Popular — 

Banco ; Santan(tef <250> 

Ranen Broatjn tlJBOi 

Hancn VUeays ■'■ 

Banco Zaragnsano. — 
Bankantoo — 

Banns Audi Inert »■ - ■ 

Babcock Wfloo* — 

ere 

Dragadns — ■ 

(nnm&anif — -~ 

B. 1. AraiiMWM —•* * 
Bsmuola Zinc — ~~ 

Bx»i. Wo Ttntn — — 

Perea <L**' — 

Paonsa (1.8081 ■.«»*■• 

Pal. Preetodn* 7^., 

Gropn VelwiK* f*™ 1 

Htrfroiy — — 

Iberthwfn 
oiatra 

Papekra* — 

Petrt4tbet' — i ' h — « ■ 

P«roie«w '•■ — — " — 

Sarrio PiMWa 
Sufara" 

Triefonka^ -?• 

T u rr a x' twafewi. • gciS 
Tatacer “ 71 

Onion . 82 k>‘. +- 1 1 . 


Percent. 
.. m 

2B 

ns 
as 
27a 
m 
154 
213 
173 
U7 
2X3 
33* 

nz 
ZM 
285 
US 
228 
» . 
n 

so. 

77 

SI 
181 

MJS 

WJ3 
7158 
15fl 

SS 

§29 
06 
UAS0 
t* 

n 

m 
■Sjb 


lv 

J:. 


+ ■* 
+-. *1 
+ 1;^ 

+ 1 ■ ■ 


+ i V. 

+ r. 
+ ‘f, 

+ 1. 


+■3 

+ 1 

+ i 
+ 2 

















































$■ 

4 V . : - . S 

“ 55 -- 




y April 




' >• 
' »■ 




Exchange 


....... 

-~Wk 

'••" ^tjl 

E,GN E ^' 

- ■ • 

rv--r-'-$ v 
■’■-’■ 

r Mf 

■ -- ; --..in-: 

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v iWf 

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y‘ C&e many other developments in the U.S., the vogue for options trading has reached 
Europe. The opening to-day of the European Options Exchange in Amsterdam— to be followed 




shortly by a similar, though smaller, venture in London — is discussed here. 


^or ** * contracts daiir itt 1973 _ to The launch of the Dutch EOE, purchaser of a call option (cany- options strategies ahead of the 

mon<iv - Ant3^a B r : Jf ay t0 r* 8 ? 157,000 in 1977, wbiJe options which will trade initially in ing the right to buy shares in opening of the new markets, 
safe mpthnd SIWUtedxifoTkur.-Other options on' three Dutch, three future) can adjust his view of Buying of call options is often 

or a ricinr cbwtl*!!? 1 * 8 "Stock . markets^ and in British and three U.S. leading market prospects as time goes claimed to add excitement with-, 

act *'<dnrktnirrfetf^na betting Toronto, Montreal S^dneyand shares, is also a sign of the on, cutting a loss by selling his out excessive risk if, say, 10 per 
These are the mwMtHoiU'- Singapore- .u j "- growing internationalisation of ‘option if he feels he has been cent of a portfolio's resources 
vestora and fund Last aUtinn^ however, the stock market dealings of which too optimistic, or taking a profit is used for the purpose. But, 

side .'of the Atianticwiif »«k! Securities an&Cwfihnge Com- London is well' aware and which if there is one. Conversely, an- of course, the chances of much 


side of thfe: Atlantic utIiT h. --V oecnnues ana? ussmange uom- wrnaoa IS weu aware and wmcn u iu«u us uue. *u- ml tuuiac, UK luouiw MI U1UCU 

ing as the mission - (SECT, the U.S. it knows it cannot ignore. other party, perhaps an Invest- of such a stake being lost are 

fOr frarttnfT^jn Government afitiiOrity which There is no doubt that share ing institution, which gives considerable, though the reward 


' 5 ■ 

• •• li. S «- -. 

■ / If J 

r.a;.-! 

; • ■- ■.* 


• ■ ■ D.ij. r. t.. -Tt, | l 

X; 

- 

*■ ■ Hui , 


for trading ,in ^are optiW 

moves to Europe- with to-day’s P°tlces ■' seottrttl® . markets, 
opening in Amsterdam of the f tepi ? ed 111 S?? cr 

£3m. -European; . Options Ex- d 7*?P™* trading 

change- (EOE). . Within three- 

weeks London w® follow suit i? e .- Stock 


-«* - we^S Londti i ^ Stock A . i 1 • ' -f i t O 

en ^ aLjaatt-iss ssajiai^s AnfiPn tOUGn OT 

ZIUUC/U IUUV11 Ul 

The concept of buying options L^^?^ ^^vaAmiSing— * Bv Marffaret Rdd 

to purchase shares in future has; shar^optionff^Sng in Dy iir » C 

always tm^to teimiTmiiidfiA-.jHfactice ta^develops its • 

™ coa&qyg ry, its.cntfes pro-^g^ervisory p^Ude^. -.-farther.- 

new development of tradtog^ options . tradi “* . under ^ (writes) an option, so agreeing of a successful purchase could 


function performed by the big 

clearing members. 

The Dutch Government, whose 
Finance Minister, Dr. Frans 
Andriessen, is to open • the 
options exchange at 3 o'clock 
this afternoon, has also 
appointed a supervisory com- 
mission. 

Amsterdam, with its own. 


Added touch of spice 


By Margaret Reid 


new neyeiopmenx oi trading » atmosphere in 
options themselves— that the Ohicago optioni 


activity is speculative and risks ijwSSL "K? 0 ?- ■ organised market introduces a time at a pre-fixed price, can Investing. institutions already 

But its Ttbponehts aigue r ^t gebuinely novel element Into buy bade an offsetting option, holding large portfolios of 
such purchases, when carried S-hip, j£5B5v£tSn the whole idea option opera- so cancelling Its liability, if its shares are frequently cast for 

out. through an organised mar- tt °bs. strate Sy or view of the WTiA of ^ role - of w f iting opliQns - the 

ket can. give legitimate spice, Givin S and taking of options share markets alters. other side of the transaction, 

to an investor’s strategy. It b y v: “ to buy shares in future at pre- Perhaps, more important, op- But strategies are infinitely 

also claimed that givers ; (writ- .•• • determined prices is not new. tion dealing only becomes feas- varied. There are of course 

ere) of options can* for their Jt 31 $t 6 • - — F °r the past 20 years— ana in- ible enough to be a practical possibtiities of loss not only to 

part, add to their ^ Income ^ deed In earlier days before 1931 proposition for most investors the buyer-of < *11 options but to 

agreeing, for a fee (premium) ’^^vartheless, vm&pfte'- the i — investors have been able to under the conditions of an org- the uncovered, or naked, writer 
to sell shares Jn.^futuie-.at a dampener ^ Oe .-SEC, purchase options to buy shares anised trading market In addi- who bets on a fall in the market 
pre-fixed price and will only trading, in sh^ure^Soptions in over a future period at pre- tion, trading in such a market by agreeing to sell stock he does 
run big risks if they do not hiftd Chicago and the^berifeehtres determined prices. tends to be, if not cheap, then not hold-, 

the underlying shares. ^ Jus caught op-^nmgly enough But a traded options market cheaper in commission terms An extensive apparatus of 
Both the • dew Dutch : injtufor a taste* with introduces an element of flexi- than activity in traditional, non- rules, a good deal of it based, 

British' ventures— they wele^us^ udw^^^m fe jg invest- bilily not present under the very traded, options, where commis- like the structure of the new 
originally planned as twcfckrfijs mrot To ' ha^OraKfn dp in limited traditional options oper- sion is related to the value of Amsterdam venture itself, on 
of a joint Amsterdam-Loqdon Europe. ■ • StocEcwpekers, some- ations in, for instance, London, the underlying shares rather the Chicago Board Options Ex- 
traded -options . exchange ■Antt* 'times ijjwujgd. Jh; past few where the holder has simply than, as will be the case in Am- change model, has been set' up 
were later.’ separated—foti^fe-yeare 5 Tecestion^ ^^^io it as a waited to see. if the price of the sterdam and London, to the op- by the EOE to protect operators 
the striking success af ^th^^sslWy" pn»hij^#^pnrce of underlying shares rises enough tion money (the premium) it- on the exchange. This includes 
Chicago . Board, Vv .QptiojB rafeiaMsian'ifiwwSr supple- to make it worth exercising the self. .. requirements about speed - of 

Exchange, which sta^t ed; me^ tradition^ h^PNs. A option. If it does.' he exercises; A great deal of exercising of settlement margin — the need 
ings almost : five. J^axs i .a^-onr«ood^^ai ofV-eflfea^w^onse- if not,’ the option expires and slide rules and tapping of caicu- for writers to pur up funds as 
April 26, 1973. .. v. .fluently 3 going into^ T «^pSpdlng the money is fully lost With a lators has been under way in an assurance that they can meet 


standardised conditions of an to sell shares over a future be substa n tial. 


v : . j; y , V ^ 


WARD RATES 




■i . 


such purdiases, when carried reached a m&k -mi 
out . through an organised max- yeArs aeo. 
ket, can. give legitimate spice, bV abmrt a ludf 3 : 
to an investor’s strategy. It Is - 
also claimed that giversTwrit- rp 'y' . 

ere) of options am* for their JLSStG . 
part add to their ; Income Ty f f i-'-jj 

agreeing, for a fee (premium) ^Nevertheless, ¥ im 


the underlying shares. Juts caught op-^ 

Both the : dew Dutch ; ao^for a taste* tori -ea 
British’ ventures— they jwefe^ii^ uiw^^di 
originally planned as tw^arfljs thent To have^. 
of a joint Amsterdam-Loqdan Europe. Stock 
traded options exchanges times * mau^d. & 

were . later, separated-rfotiol^jcatv’ Tecestion*- 
the striking success: at ^thefewsi Wy ' ' priwaijS 
Chicago . Boa3rd ; , i',.-. Options. S|^m4»ion.' ihw 
Exchange, which; sWFted; met^ tradition^ 
ings almost five. yeais i .ago^«argopdv^ai ofvef 


April 26, 1973. 


quentl 


In its first four 'years ‘flae* IhveWiag institutions the traded- - share options market- stockbrokers’, back rooms as the their commitments — and the 
OBOE saw an explosive ;grt{^!tech^^&I^s»mething|o offer the options themselves can be market, pundits in 1 various structure of the market itself, 
in business, -1 - / — ■ — hdxtght and : sold, -so -that - the- centres - : explore different with the .crucial guaranteeing 


and Holland’s, long traditions 
of worldwide commerce and 
business as a background, is 
hoping for a broad international 
clientele — as well as member- 
ship — for the new market Not 
only well-off Dutch individuals 
and institutions but also clients 
elsewhere in Europe, including 
Britain, and. investment hand- 
ling centres like Zurich, will, it 
is hoped, see possibilities of 
extending their investment 
strategies through use of the 
EOE 

There is no disposition on the 
part of the EOE to hide the fact 
that options trading is an 
activity where losses can readily 
be made and that those partici- 
pating in it should realise the 
hazards attached to the nskier 
strategies. AH this is stressed 
in an explanatory memorandum, 
underlining all the risk aspects, 
which the EOE managers are 
asking all members of the new 
exchange to bring carefully to 
the notice of their clients. One 
point .which should perhaps be 


stressed is that those who trade 
there need to watch an option 
market constantly for any 
change which may- require, a 
response; it is a market for 
investment’s King Storks, not 
King Logs. 

Options trading has its oppo- 
nents "who argue that it is un- 
desirable froth, dealing not in 
goods or even in securities but 
in new rights created out of thin 
air, as it were, by the partici- 
pants from the underlying share 
market. 

The Dutch Government, like 
the British, has not taken this 
critical view and is ready to see 
the venture launched as a new 
elaboration of investment facili- 
ties available in Holland, though 
it will doubtless keep a close 
eye on its development The 
EOE policy of picking major 
international shares as those in 
which options will be traded is 
a further protection against the 
rigging of the underlying mar- 
ket by options operators— but 
experience alone will demon- 
strate whether the exchange can 
be free of undesirable features. 

It is interesting to consider 
the stock market context for 
the launch of EOE. Generally 
speaking,, rising markets offer 
more fun for option buyers, 
while stagnant or falling mar- 
kets- are more favourable for the 
option writers taking the oppo- 
site stance. The Chicago Board 
Options Exchange’s adbut was 
followed by stormy conditions 
far from favourable to buyers, 
who, however, came more into 
their own in the brighter condi- 
tions of the mid-1970s. 

.With Wall Street at present 
subdued, and London — like 
many other sto.ck exchanges — 
well below its peak, option buffs 
will be scanning the market 
horizon for-tight to pick -their 
moment for launching call 


option strategies in the hope 
of a market rise. On the other 
hand, continued drabness in the 
world economic scene may 
rather prove to favour option 
writers. 

If the EOE proves a real suc- 
cess, it could generate substan- 
tial commission income. ' Dr. 
Anthony Henfrey and Mr. 
Christopher Whitehead of Lon- 
don stockbrokers W. L Carr — 
whose Hong Kong subsidiary is 
a shareholder in First Options 
of Amsterdam, a large clearing 
member of the EOE — have esti- 
mated that commission revenue 
could approach $100m. a year 
after four years. This, they 
point out, would compare with 
$350 m. income in 1976 from all 
sources of all members of 
Brifain's Stock Exchange, 
Europe’s largest. 

Torpedoed 

British reluctance to join the 
originally projected joint Euro- 
pean Options Exchange with 
floors in Amsterdam and London 
torpedoed the dual scheme in 
1977, largely because there was 
resistance to spending the £lm'.' 
that would have been involved 
in British participation and be- 
cause there, were regulatory 
problems about a venture not 
run by the Stock Exchange 
itself. London has lowered its 
sights in terms of size and is to 
conduct, its limited £200,000 
venture from one podium on the 
floor of the Stock Exchange and 
under the supervision of the 
Exchange’s Council, at the start 
in options on ten leading British 
shares. 

Some still hope that if both 
the separate new ventures suc- 
ceed. they may one day come 
together in the originally pro- 
jected joint options exchange, 
but it is too eariy to judge if 
tills is likely to happen. 


no -.it 
-.'.■j -;j.r 



..ii— ■- 

• * 4 . - 

V." • J 

ANNESBJJG^ 


s= L'StGI*tS J 


. rtf -fix 


v .- 

'• , "t - -. .*"■ -. 

-I 

• - : r >- — . 

. 1 » . 

• m - • • T" 













I 


mm?, Tppi A workable formulate: successful and 
alert operation on the European Options 
Exchange is offeredby the combined services of 
WMR Bank Amsterdam. . ■ 


systems -devebpmmt|nd Ten^^asfiomthe 
opening day of the EOE the services of; 

i , : . . Public Order Memb^ Floor Broker and 
Clearing Member. ' ; 

' : Rdly aulbmated s^tems further 
guarantee an inanejiate and secure execution and 
settlement ^ all transactions. 


Even, if you understand the formula, you 
still need NMB Bank Amsterdam for your operar 
tions on the European Options Exchange. 

NMB Options Dept Floor Trading is 
reachable through: td. (020) 5433850/ 5433851/ 
5433852 / 5433853, telex 15555NMB OENL. 

- For aQ information: NMB Bank Amsterdam, 
Securities Division, P.O.BOX1SOO, tel. (020) 5432984, 
Mr. H. Hartxink N uman 



NEDERLANDSCHE MIDDENSTANDSBANKN.V 


formula tb calculate the theor&ScBl value of stock-options. 




35 


Kas-Associalie N V 

Amsterdam 

a bank affiliated to the Amsterdam 
Stock Exchange and specialised 
in custodian, 

clearing and fiduciary activities will act as 

Clearingbark 

for Dutch currency options 
and as a 

Clearingmember ■ 

of the 

European Options Clearing Corporation 



KASnASSOCIATlE MV 

Spuistraatl72, Amsterdam. 

T elefoon: 020 - 2 1 25 2 1 , Telex: 1 2286. 


dataSTREAM 



I 

I 

I 

I 

I 


^ Real-time prices 

Choice of Option Model 

Volatility Measurements 

Cheap/Dear Factors 

HE Risk/Reward Analysis 

Hedge & Gearing Ratios 

# Current & Historic Data 

Amsterdam & London 
Options 


The Complete traded Qptions; 
Service at the touch of a button 


Traded options represent a new and exciting area for 
investment but require new analytical techniques to take full 
advantage of the opportunities available. dataSTREAM pro- 
vides these techniques with its on-line visual display service 
which offers real-time information on options and the under- 
lying equities plus powerful computing facilities to perform the 
^complex calculations necessary to gain the full potential from 
trading in options. 

For further information please contact your local office: 


Hew Bokelweg 25 
3032 AD Rotterdam 
Tel: 010 €53233 



9-12 King Street 
London EC2V 8DU 
Tel: 01-600 6411 


Borsenplatz 7-11 
6000 Frankfun/Main 
Tel: 0611 1302 2S9 


dataSTREAM International Ltd 



.Financial Times Tuesday Apr!! ^ ®7g 

EUROPEAN’ OPTIONS EXCHANGE IT 





d 


THE EUROPEAN -Options 
Exchange begins trading to-day 
in the options of nine under- 
lying stocks— three each from 
Britain, Holland and the U-S. 
and rather fewer than the ten 
to 15 forecast last year. But 
the number does not compare 
unfavourably with the 16 stocks 
which formed the basis of the 
Chicago Board of Options 
Exchange (CBOE) . in 1973 
taking into account.' the prob- 
lems of ' setting up an inter- 
national options exchange. The 
CBOE doubled the number of 
option types traded ' within 
eight months, the EOE hopes 
it wQl be -trading about 60 
options within the first year or 
so— the floor could accommodate 
80 stocks. 

While the 'Amsterdam Stock 
Exchange .-listed 256. stocks at 
the end pi iST&v-and th e other 
European and' TJ.S._. exchanges 
would 1 this figure many 

times— only- a ‘ lifnited number 
can be considered for option 
trading. There must be a free, 
active and continuous, market in 
the underlying securities in the 
home market and there must be 
a wide spread * of ownership. 
These requirements exclude all 
but a handful of shares on the 
Dutch and other exchanges. The 
aim is to provide a solid base 
for dealing in the options and 
to .avoid option'trading develop- 
ments affecting the trading in 
the underlying stock. 

It is- estimated that at most 
a dozen Dutch stocks would 
qualify far option trading: In 
the first year or so between 
20-25 U.S. stocks could be 
traded, as well as a similar 
number of U.K. stocks. West 
Germany might provide 10, 
Prance six to' 10 and the other 
European stock exchanges two 
or three. The limited size of 
the market and. narrowness of 
trading will exclude all but one 
or two stocks from the Belgian, 
Swiss or Italian exchanges. 


Pencilled 


In the longer term the EOE 
hopes to quote Australian, Hong 
Kong, Japanese and South 
African stocks. Japan might be 
the most fruitful source of new 
stocks- and -the EOE has 
pencilled in 22 with potential 
for option trading. The other- 
three exchanges could -provide 
between 5 and .R stocks .each. 
Once the’ EOE "has begun’ trad- 
ing in the maj or E uropean 
stocks it must look for further 
growth to the exchanges in the 
Far East and the U.S. The five 
U.S. option markets now trade 
around 200 stocks although 
much of the volume is con- 
centrated in the top 25 options. 

Despite this lack - of depth to 
the European exchanges gener- 
ally there is normally very 
active trading in the top stocks 
and many of these would be 
ideally' suited to notion trading. 
The six leading Dutch equities 
— Royal Dutch, Philips. Akzo, 
Robeco, Rolinco and Unilever — 
have accounted on average for 
about 45 per cent of Amster- 
dam's turnover in the past few 
years. 

In fact turnover in Royal 
Dutch, Unilever and Philips 
outside Holland is even higher 
than on the Amsterdam Bourse 
itself. In view of this strong 
international interest these 
three have been selected as the 
first Dutch stocks options 
which will be quoted on the 
EOE. Other Dutch stocks which 
might 'later be added are the 
insurance group Nationale 
Nederlanden. KLM, Heineken, 
the two banks Algemene. Bank 
Nederland and Amsterdam- 
Rotterdam Bank, and steel- 


maker Hoogovens. . ' . * 

The London Stock .Exchange, 
.still the -largest in Europe in 
terms of turnover despite, the 
effects of currency- fluctuations 
ih recent years, is likely' to pro- 
vide the biggest selection .of. 
potential option stocks in 
Europe^ The EOE hopes to gain 
agreement from the Bank of 
England that U JO residents cab 
trade UJC option classes with- 
out being required to pay the' 
overseas investment premium. 

But even if UJC residents are 
effectively prevented -from doing 
so the EOE' reckons it can still 
be a viable operation.-. ICI, BP 
and GEC have been chosen as. 
the first British stocks, but 
estimated turnover volumes 
indicate a total of 30' possibles: 
These include Barclays Bank, 
National Westminster Bank, 
Distillers, BATS, Bowater, Com- 
mercial Union, Marks and 
Spencer, Beechams, Coortaulds, 
GKN, EMI, Rank, A-P.-Cement, 
P and O and RTZ. 

IBM, General Motors and 
Eastman Kodak will be the 
first U.S. stocks in which 
options will be traded on the 
EOE In keeping with the 
American potential and the 
extent of option trading in the 
U.S., the EOE hopes option 
contracts written in Amsterdam 
will in due course be fungible 
with those issued by the 
Options Clearing' Corporation 
in Chicago. Other potential 
stocks already -handled on the 
U.S. options exchanges are ATT, 
Citicorp, Polaroid, Xerox. Dow 
Chemical, Occidental Petroleum 
and RCA. 

The EOE has shortlisted the 
20 most active stocks traded on 
the New York Stock Exchange 
(NYSE) which are also traded 
on the CBOE. These accounted 
for nearly 9 per cent oF NYSE 
turnover in 1976 and for more 
than. 50 per-, cent, of CBOE 
turnover. * 

The EOE' has held back on 
the listing of - options on 
underlying German- securities 
while it tries to solve the prob- 
lem of the liability of German 
banks for option transactions 
they carry out on behalf of pri- 
vate clients. When this has 
been resolved potential German 
stocks are the three chemical 
giants BASF. Bayer avid 
Hoechst, the big three banks — 
Commerzbank, Deutsche Bank 
and Dresdner Bank — and 
Siemens. Further possibles are 
AEG! Mannesmann, Thyssen, 
BMW, Daimler and Volkswagen. 

French stocks have been given 
a higher priority now that pro- 
gress in Germany has slowed. 
The most likely candidates for 
the EOE include Aquitaine, 
Michelin, Carrefnur, Club Medi- 
terranee, BSN, Maisons Phenix, 
Pechiney, St Gobain and 
L'Oreal. 

The new Amsterdam exchange 
expects to break .even on a daily 
volume of about 7,000 contracts. 
It hopes to reach this level after 
about one year’s trading. A 
study of likely trading develop- 
ments shows an average of 
around 5,100 contracts a day in 
the first year of operation, 
rising to 8,700 in the second, 
15,800 in the third and 22,600 
in the fourth. 

Business volumes will depend 
on a number of factors, includ- 
ing familiarity of the partici- 
pants in the market with option 
-trading, the number of under- 
lying securities traded, the level 
of option premiums and general 
stnek market conditions. Experi- 
ence in the U.S. has shown that 
trading expands relative to 
equity trading when the market 
is rising and declines in a bear 
market 

The value of turnover on U.S. 


options markets as & proportion 
of turnover on the New York 
^Exchange rose from 1.7 percent 
in 1974;-; the first full year of. 
option trading, to 8.3 per cent ' 
in 1976. A figure of ' around : 8 
per cent.' of the underlying 
equity turnover -seems a. reason- 
able aim for the EOE. - 
A -study carried out.' by 
W. L .Carr, Sons and Co. and 
■the EOE has put the potential 
commission ... income . . of : the 
options exchange at approaching 
$100nu -compared with--' total 
income from all sources of all 
members- of the London Stock 
Exchange - in- 1976 of. $350tn. 
The figure for Amsterdam ex- 
cludes any additional commis- 
sion from business generated in 
the underlying securities. Com- 
-mlssions could therefore- 'he. 
almost a third nf , those <in 
London. ' ~ ■ 

Who is expected to use: the 
options exchange? The EOE’s 
general manager, Mr.. Tjerk 
Westerferp, provoked some con- 
troversy when he remarked 
that the exchange could also be 
used by the small investor. The 
EOE and several of the banks 
have prepared prospectuses' to 
inform the public about how an 
options exchange works. Bat 
the risks attached to options 
dealing mean some of the banks 
will be cautious about encourag- 
ing the smaller account holder 
to try his hand. Mach of the 
initial interest is expected to 
come from the institutions. 

The Dutch banks are never- 
theless confident that thpy have 
a fair number of customers, 
both in Holland and abroad, with 
the funds and the .sophistication. 


to deal la the market, and they 
arc .training their staff in option, 
dealings. An attraction of the 
EOE for investors in Holland is 
that there is no capital gains tax 
and the increase in portfolio 
yields possible from option 
trading would be tax-free. 

Swiss • investors — and 
foreigners working through. 
Switzerland— rhave also shown 
keen interest in the EOE, 
although the -picture elsewhere 
in 'Europe is loss dear. Ger- 
man banks are likely to be re- 
served towards the EOE until 
the position of their responsi- 
bility for the debts of private 
clients investing in fixtures 
markets is cleared up. The 
volume of British interest will 
depend very much on the Bank 
of England's decision on tiie 
application of foreign invest- 
ment premium rules to the EOE: 
Controls by the French 
monetary authorities may hold 
bock .levels of business from 
that country. 

. It is expected that institutions 
will i have a proportionately 
greater share of market volume 
on tiie EOE than on. the CBOE 
because of the less well 
developed retail business in 
Europe." Turnover will be in- 
fluenced to a large extent by 
market maker activity. Market 
makers accounted for 45 per 
cent of turnover on UB. 
options exchanges in 1976. 
Amsterdam has acquired 55 
market makers. 

The level of U.S. options turn- 
over on the EOE in relation to 
U.S. equity turnover could be 
even higher than in the early 
years of U.S. option trading in 


view of investors’ 
awareness of option paten] 
and the pool of experienced I 
market makers active 
Amsterdam. European optfr 
will also benefit from t 
awareness. 

On the debit side the Look 
S tock Exchange’s plan for 
parallel option market b 
draw off some business. ,.j 
familiarity of. European b% 
in handling retail elient& * 
might be interested in the £ 
may also retard developing 
The existence of the EOE 
already persuaded banks 
improve their approach 
these potential markets 1 
ever. . 

Option turnover on the i 
in U.S. and U.K. options d 
be around. 4 to 5 per cent 
the' underlying equity tuny 
in money terms in the feu 
year of trading. Turnova 
Dutch options could be t 
higher-^at 5 to 8 per cent- 
view of. the strong fi 
national interest in a a 
number of Dutch stocks. T 
over of German and Fit 
Oi*ions will grow more ah 
but could total around 2 • 
per cent by the fourth yeai 

Despite the problems it f 
in overcoming the restrict 
imposed by national regulat 
■the EOE sees great ppte 
far an international marke 
is starting with a dear Ai 
Dutch-U.S. bias, hut it hopi 
achieve a broader Euro; 
base within the first year/ 
a broader base woridwidt 
the following three years./ 

Charles Batchr 


Questions of 



Judge our future with 
the European Options Exchange 

by our past without it. 


Experience on the Amsterdam Stock Exchange 

PHP has played a leading role on the ■ 
Amsterdam Stock Exchange for over 100 years. 

Plus we have experience on other European 
and international markets with foreign securities 
business. 

Experts in the securities field. 

We can point to our long years of experi- 
ence in all facets of the securities business: for 
example in international arbitrage, block trading, 
institutional advisory services, new issues 
and listings, portfolio management, custody services. 

In each area there are PHP professionals 
ready with creative advice and personalized service. 

Co-founder of the European Options Exchange. 

Because of our interest in strengthening 
the international aspect of the Amsterdam Stock 
Exchange, PHP was involved in setting up the 
European Options Exchange. And acted as its 
co-founder. 


Leading trading and clearing member. 

Because of our commitmentto this 
new Exchange, we intend to play a leading role 
in its activities as a public ordermember, floor 
broker and clearing member. 

Banks, brokers, institutional investors 
who wish more information, please contact 
Mr. Klaas Roeiofsen at our head office: 

Pierson, Held ring & Pierson N.V., P.O. Box 243, 
Herengracht 214, Amsterdam.Tel. 020 - 211188. 

Pierson, Heldring & Pierson NV 


London representative office: 
Pierson, Heldring & Pierson (U.K.) Limited, 
19,St.Swithin’s Lane, London EC4N SAD. 
Tel. 01 -626 1966. ... 


REGULATION OF dealings on 
the European Options Exchange 
was given high priority from an 
early stage in. preparations. 
Early in 1977 the panel working 
on the setting up of the ex- 
change warned that: “The 
whole concept could fall into 
disrepute by a lack of control 
over the manner in- which 
options are sold to the public/’ 
Subsequent events leading to 
restrictions on the development 
of new activities in options 
trading on the five existing U.S. 
options exchanges and - else- 
where in the U.S. have con- 
firmed the need for caution. 

A major problem faring the 
EOE is tiie- fact that it will be 
dealing with a large number of 
participants over which it has 
no direct control since they are 
based outside the Netherlands. 
It has tried to lessen this risk 
by requiring that clearing mem- 
bers be companies incorporated 
in Holland or firms formed as 
partnerships under Dutch law. 
They must have an office in 
Amsterdam and a minimum net 
worth of Fls.500.000 which must 
be maintained at all times. 
Their accounts will be certified 
annually by an independent 
auditor who is acceptable to the 
EOE. Since all transactions 
must pass through a clearing 
member the EOE has thus 
strengthened its grip on the 
other three classes of member. 

The clearing members will 
deal directly with the European 
Options Clearing Corporation 
(EOCC). fully owned by the 
EOE itself. The EOCC will be 
supervised by the Finance 
Ministry and Holland’s central 
bank. 

The EOE has also tried to 
turn the multiplicity of national 
regulations to its advantage by 
working through the national 
stock exchange associations. 
Public order seats may only he 
owned by a member authorised 
to carry out public business in 
securities in his own country. 
This has been extended to cover 
□on-members of exchanges who 
carry out a sizeable volume of 
business in securities for a wide 
variety of clients. 

Guarantee 

Floor brokers „and market 
makers, apart from conforming 
to the minimum capital require- 
ment of FIs.25.Q00, must be 
covered by a guarantee from a 
clearing member who agrees to 
accept responsibility for trans- 
actions. A similar, guarantee 
must also he gained by public 
order members. Floor brokers 
must be individuals, firms Or 
subsidiaries of firms which are 
members of rr stock exchange 
belonging to The Federation 
Internationale des Bourses de 
Valeurs (FIBV) or members of 
one of the exchange participat- 
ing in the U.S. Options Clearing 
Corporation (OCC). 

A five-man supervisory com- 
mission will watch over the day- 
to-day affairs of the . EOE, 
Taking -its powers from the 
Stock Exchange Act of 1914, 
this commission will protect the 
interests of participants in 
trading — in particular the pub- 
lic. Before the opening of the 
exchange this commission re- 
viewed the EOE’s regulations 
and from to-day it will see that 
these regulations are properly 
applied. Hie commission is 
empowered to gather informa- 

r. 


tion from the various adminis- 
trative bodies of the EOE. It ; 
can also order the internal 
control office ot the EQE to 
carry out checks and report 
back. The EOE’s managing 
board must report back to the 
commission any disciplinary, 
action it takes, against mem- 
bers., .- ’ ■ \ . V ■ 

The commission’s wide powers 
■also include tiie determination' 
of trading hours and methods of 
trade. 

The aim of the commission, 
which was set up under an order 
from 'the Finance Minister, is 
to allow the EOE to be a self- 
regulating body. Ultimate res- 
ponsibility lies with the Finance 
Minister, however, and he must 
approve the choice of shares iq 
which options are traded. This 
gives him the power to - veto any 
further expansion of the EOE’s 
activities. 

The EOE believes that several 
factors will ensure the smooth 
operation of the exchange. First, 
detailed preparations have gone 
into setting it up. Numerous 
visits to the U.S.' options 
exchanges were made and the 
advice of the Chicago Board of 
Options Exchange was sought 
The problems which the U.S. 
exchanges ran into have also 
been studied by the Dutch. 

The EOE is beginning with a 
very limited number of options, 
partly from choice and partly 
because of the limitations im- 
posed in securing 1 he participa- 
tion of members from several 
different countries. The exchange 
hopes to reach its break even 
volume of about 7,000 contracts 
a day within 12 months of open- 
ing. This is a fraction of the 
volumes reached on the U.S. 
options exchanges and will mean 
the regulatory authorities can 
more easily follow developments 
and spot problems at an early 
stage. 

A strict check of the deals 
carried -out' will be possible. 
Public order members will issue 
a written confirmation of each 
trade. The numbered receipts 
will mdan that possible dis- 
agreements' ' later can be 
verified. Public order members 
must also keep an up-to-date 
record of a client’s position in 
' each series of options in which 
he is- active. This must be' 
shown 'to the client on request. 

Regulations aimed at ensuring 
fair trading also apply to -the 
market maker. At least two will 
operate in each option class and 
they win be expected to take 
positions, and trade' so as- to 
provide ;a continuous market 
and ■ maintain a consistent 
relationship between the various 
option series. ■ ... . 

The EOE plans to match con- 
tinuously trades throughout the 
day at the trade matching desk 
on the ^dxcjbange floor. This, is 
on" the isoes-of the system used, 
on tihe' Pacific and 'Philadelphia 
stock exchanges and . allows a. 
more up-to-date view of the 
market than matching at the 
end of the session. 

Margin requirements have, 
also been set to ensure some 
degree of cover for the options 
traded. Public order members 
must deposit underlying securi- 
ties with their clearing mem- 
bers for aH of their obligations. 
The public order members may 
in turn require margin from 
their clients. 

Tbe. margin may* be the. 
underlying security, or cash or 


approved securities wortt 
Jess than 260 per cent, of 
premium received. A jp 
securities include govenj 
securities issued an the j " 
country of any of the pra- ~ 
markets or Certificate* 
Deposit for the unde : 
securities. Treasury bfflp 
third-party bank guarantei 

In. line with their key 
tion Jh the whole syste o 
clearing members face- 
strictest capital requireii.. 
The continuing net capif 
F-lS.500,000 which is r$q 
may be raised if the voter 
business he carries out s - 
this advisable. Every tie 
member must make a mid ' 
initial deposit equivaleo 
FJs.24,000 with the de 
fund. After the first . cal; 
quarter this contribution ft _ 
reassessed monthly on the^ 
of Fls.25 per contract oi^ 
clearing member’s averace. 
open position in (he prec l 
three months. 

Default 

Should a clearing m 
default, the clearing co 
tion can claim all his n 
and his clearing fund cor 
tion. If (his (is not enoi 
cover the default the cl 
corporation will draw pr< 
on tiie clearing fund 
tributions of the other 
members 

The various national 
exchange regulations 
apply in -Europe and thi 
have inevitably thrown up 
problems for the EOE 
tial German participants 
problems with a ruling • 
back to the depression > 
1930s. Regulations introdu 
protect the small invest 
freeing him from the obit 
to meet ' debts incurre 
futures trading would ap 
the EOE's dealings. G- 
banks and stockbrokers 
reluctant to carry out 
actions for clients In A 
iiam until they have clear 
this, problem with theii 
regulatory authorities- 

Potential U.K. membe 
the EOE have also had pro 
with domestic re gull 

British stockbrokers weir 
mg for a speedy decisu 
whether they would 
licences under the Pre^ 

of .Fraud- (Investments) 

before they could join. B' 
Bank of England has agree 
UJC investors can 
in options business in E 
shares in Amsterdam w 
paying the investment pr® 

- .-While the EOE itsel- 
erected a system of contro 
regulations to prevent i 
the Dutch banking ana i 
ment community is also 
of the potential oa 
Options are not seen as the 
medium for tire 51 
investor, although 
will be ready with advre 
those clients who are imer 
They will ^ be appro; 
the new market with « 
though. They are very aw. 

the greater experience ^ 
can investors have of 
of operation and Wlil 
to see their Dutch or Eu 
clients taking losses ^ 
their relative unfamiliar^ 
options trading- 

Charles Batch 












ns 


*T«r*; e '“''fit 

i »*■ s * w f ‘f* 


- aNV“' -j • •£ .fc .j," 


"-'.A' 1 - >■ 


»-■;* 


.' C*,. ' taxation position and - Ae cnct toe case 

L -> tx..j.::‘»‘fc tBlt of connnteS wi^iJ sSS ^^c«^;«6Br^n*stoons on tie Chicago Board. Cations 

ls *tf S the European Onions Ea&nS £ ave beea ***• ^ Ew*ange, where only some 5 

W . ; f» .. *h ■ ...,ai J- n i-» , _ , ,, - iCTgnan ° e Revenue tor notions to be n*r **m* n f Antinne Sri. aimf 


no Kuana kdcenaDge, where only some 5 
is to be per cent, of options are ever 
phat com- exercised. ; 
as seeuri- 


* •* S ; :w ^ he : toding rt ^ TOts« IS 22Sr JJL-SKL?, be per c ^- 
■'“ 3r :*y options on-sharei- of three coun- SS&^J5i2B s? f rt ^ €xewafiBtL : 

V&M. SSSKt 1 * V*™»*. »!*jm* «**- Gains 

v =■'( h °P e «t » those ot other Euro- 0f *** 


' T Clir* “ Uiuae Ut otner isuro-. iminjjl . . \ ~~7 grr-v* * 

- *•*. -,t Sr . tfsw J pean nations, and ' as if will be: 10 , . " As to options business from 

•**<iy 0i °P en 4t> Investor* around the f®** ‘ 2 ® ? for viewpoint of the writer 

'T; \a ;.' SJa ied 5 a^yaitety.of tax -regimes frititii inveBtoWjftnr be shown (seller), if the option he has 
ms n.-w* 303? t0 *» -considered. > -b^ otfiiaWeitag Wtion of written is taken up and he sells 

r. ' ■■■“*! ujjjfc ; ^^re ^coming-. -to the - tax - a for » the shares, what he receives, in- 

»P!. on „ situation of investors, • ft : is 30 » eatStiing I^Jtolder to eluding the option premium, and 


! ./■ '-tii-nj ‘Y i, h there 5 they want appropriate, tax 3wrposes,^ig(^^Option Js is bought to match and 

r - members to join for commercial regarded as «&l^q| wiiich has extinguish the liability under 

5 <,j g reasons, rather than with an eye wasted away ^j^pofhing. a similar one written, the 

A ,J * the 10 tax-dodging. If concerns Suppose 4h«t,$^efcsres were respective receipt and cost 

. c ohus with the latter in mind, to rise and the option to be ceenot be offset against each 

n:i * r of d-‘v 1 ltl win be disappointed, one sold, toatf way te4te’«»uy date, othe f for gains t«* purposes. 

“ ■:* : tax expert, remarks. -.. at 40» yieftdftog a pa»at*f 10. In The question whether activity 

■* , * H aaj ^ Foreign concerns setting up this i rflwmv tfcn-awtii of. the in options by Individuals or 


inn* "v ;« £ «k -roreign concerns setting up this inftMMgv tbe-arorth of. the 10 opnons oy individuals or 

e«:!:T.i companies in . Holland to optioit dWOTgaided as having com Panies could be regarded 

iv nr !’• operate the exchange, as shrunk hy half to 15 when it 35 a trade and taxed accordingly 

ic-p ev -^ members or otherwise, 1 wUi pay *soHt ®eiaxahae capital gain in Britain n e 0ds to be con- 

" ■ ?r WfittiV. -^teh tax. as appropriate -in the y,m jaW : be resaidftd as 25 sioered. as it does elsewhere. 

? iw us ual way. ... tsn-— isi and net*- the 30 S1 8h* ate that it would 

r -ai:o!ij! As to investors, miita different ^ .u ui^L i- probably not be, except in 

. c, “ -••-•“< ^ rc-'v*. approaches to options business at ^ aa ^ r special circumstances. It is 

ar ^’t'r-.a-Kj^ ^ may well be . appropriate for However, anore^avouraDie also not ■ expected that option 

' ,ar >!■« £ mJ' 1 ; Parti k as vaxioosas entitiespay- treatment is ivaBfi^ue n Urn deals by pension funds, invest- 

v-:-L'.S '::a- t sng little orno tax — like offshore option is held anft exercised, meat trusts and other institu- 

:PV * a r.roaiiep't^ iunds * tax-exempt funds, iadivi- vrtien Inp cost padded to tions within reasonable limits 
•? .v -v* c' duals with no liability to capital the coa trf ao^ps^n of the would be regarded as a trade, 
irrsa.i.,- A gains taa^ and those in Britain shares. If *^shihK?sjrise to 400 though professional advice on 

:V?:r*w;r subject to tax rules which apply are bou®6t^^jr: ^option particular circumstances should 
■ = ;ee .^ somewhat rigorously in certain J^ilder '4iid SbM.^'nme same be sought. 

Chari pc Pnu. re sPMts to options dealing ■- . pjace.^tiien (iopj^fb^^expenses -Charges which investors en- 

” A major factor. affecting all ftjpdred), thej^^ls.aSO (30 + gaging in option deals must 

those subjectto 3>utch tax is that / 330) -and tiie j&grik'le capital allow for include commission, 
there is no capital gains tax in -. • 

P HoHand. This means that an' Sai , ... . jj; 1 w *>- •• 

f\T v ^or -there who: writes an - ^ . 

Ill option tosell shares c^n add the . ■rJiSi-.i' ‘ 

V/ X. premium he receives -for doing - , l. j*Vv> -y _ 

this tn his-divlflend» on. -the .. - ^, . / T }£$£ ?_... .. I* 

shares, so increasing his yieW on . n / ‘‘i \ \ T T 

. _ them without having; to consider . V - 1 W I III I 1 1 

r| any gains-tax liability. Aljerafc ,, : . v '*.%■ T JLJL V/111 

I 1 tively, he can regard ihe^ ^recea^ \. >■ \ - .’'- •-t • -jiv J. 

t JL as an offset against part tjf . i. ■ b iJfc'M J : 

cost of the shares. Ifhe buys an Wi'FH. TSE o^fag- of the DJC investors a fully corn- 
option and the shares rise^ he European Optioi^Bxchange in petitive range of option trades. 
r -‘— can sell the option «t ir prdfiU 1 Amsterdam; tife' , ^Ki' iiivestor But it is no secret that the 
-i again without: the . prespeet' o#-’ o^E«ed .mv inti^^pg oppor- rate of expansion in both mar- 


Of 


which in the EOE and other 
traded options markets will be 
based on the value of the 
option deal and not. as in the 
traditional (on-traded) market, 
on the value of the underlying 
shares. 

Commission will be payable 
in the currency of the under- 
lying shares and the lengthy 
negotiations which have taken 
place with the Bank of England 
have been designed to allow 
British investors to pay this 
charge as well as other costs of 
dealing on the EOE in options 
on British shares, without incur- 
ring the investment premium. 

Commissions will be charged 
both on the buying or selling of 
options and on the exercising or 
assigning (pur charing or putting 
up) of shares when an option is 
exercised. Minimum 1 scales have 
been laid down for charge by 
the public order member to his 
client These taper off as the 
consideration rises, but are 
expensive enough for the 
smallest deals to make commis- 
sion a major hurdle to the small 
investor who is not overwhelm- 
ingly confident of his judgment 

For single orders for sterling 
options, the minimum commis- 
sion for under £59 of money In- 
volved i x tli? order is £9.40: for 
£59-£l,470, 3.3 per cent plus 
£7, with a minimum of £15; for 
£1.47 1-1-2,823. 0.9 per cent plus 
£13; and for £2,824 and above, 
£38.30. For multiple orders, on 
£17,647 and above of option 
money, commission rates rise to 
0.4 per cent, plus £83.50. 
Parallel charges are laid down 
for business in guilders and 
dollars. 

Margaret Reid 


from U.K. 


mg oppor- rate of expansion in both mar- 
btions on kets will hinge upon their suc- 
gj- outside cess > of failure in attracting 
’ -Vftth the business. The maxim that 
^'Standard “ nothing, succeeds like suc- 


:•>.? in the’absence 


efauit 


Ae any gains; -tax. .On -thtn dtbe^dmtty to ja^uie . n^ntions on kets will hinge upon their sue- 
i* s. band, -should an option 4e; has ^^poir UJK. 'se^ra^S' outside cess . of failure in attracting 
-a- bought lose v^e, -6r. if^tosseff tiJ^GoMon the buriness. The maxim that 

:r- : ‘vr are oh-aq naktcces^ri 'ppep^^ Xendepi^Sfandard “ nothing, succeeds like sue- 

' « r.-ifiiS uncoym^/optioiv there :is^^ : Eac^ei^a^ice'0ipi6oS^ihQrtly cess” has proved to be specifi- 
: way inwhidi these losses can afjterward^L^a choice® wm-kst cally true of option markets 
T'-ii.r? -j offset against any tax Jiabiiifiya ‘ ^wur -be . predated, - anS hew elsewhere, and it seems likely 
---- .•.Ie.v »***• ^ ^/4«wo»jd. | <^pbrtuniues will arise— and; ^ lon S n ^Z or P® 1 *®! 15 

• - -• x ■'■i r n|ffortunately, : - •»fe^ , ' ,, prbblems the .short— ^the U.K. investor 

^tanaarasv ^ - Jr. ■ wm w himself Obliged to 

m ■:'■■■ ■ ■■ ".•!-* ' ■ Thp"'uJC investor mav be-t** e ^.option businew to the 

3-' . Against 4he : background of ^ ^ ^ ^ and'; most active market 

••-■S' ?-r-= Ho Wand’s high livii^ riandards iirespecthre of geography. 

..... :.c op and considerable savings t ^ - L^rd^S ' A 1 ruling at the end of last 

i .; v . s- .- r- some Duteh bankers think thaf, „ ® - u -. - A week by the Bank of England 

!••** mtBe-«J»ew*>f aji=viWerfs Si§J«ll'A^ndL opuS^ ^ remoral what would otter- 

. ,r-,s tax. ojaaons could have con- ^ cu^ency wise ^ ve been * major Mpei11 - 

-■■■ iw 1 «u»Ai»ble itorqit a r r y W.^afiSawWM stock, 4«tF 

ili of better-oft mdivjdTWlS awsiiU mlblished from Hoi- H 1 ® t0 deal 00 “ e E ? E “ Th * 

. -V ^ The 'question whriher Dutifi jjt first from the one > IW ? 1 “ ts be . able l0 TT ^ 

• - ■ v - institutional or company funds n»ofed in London; . ™^ e .£ or de ^. s ° n 

cnnlrf ansslblv incur any T seCunties in Amsterdam with- 

' • the sumlwities. out any liability being incurred 

• ■ J .L.- £^ , S^5 l S5dS European- Options :t0 investment premium. 

: ' ■ ** Ex<3&wie and the London-,- The ' Bank has also given 

... . r : : ;'fv be. considered from case to_fcas^ traded options market are o^t- co^nt £or British concerns to 
•; - ~ ^ V !f W aw>ea?? JJjJj.-.vfeighed by the differences. -,pjy tb e costs of becoming mem- 

tiiat such entires -as of these . differences art .?£ fte hew AmSerdam 

funds could safely do tfcejbniUaJ and offer exciting . ^ghang e, though, for Stock 

. business to any reasonable ex-- choices to the British investor, ^^jge firms* there is still a 

Jll tent without r unn i ng any risk Some are more deeply structural pr^iem under the Prevention 

« of the activity being treated .mj. and • may, - have .more, lasting . oC ■. 5^^ (Investments) Act 
- jr: : T t a 1 trade gWhg rise to tax Uabi- significance as the two markets *i«58 to be sorted oat 
- - r -r Uty.- The biggest pension funds develop,. \ . • -.-*■ 

*’ may well be. interested in . Amsterdam will initially offer ’Affr a pH fill - 
:r.'- writing options. Option trading in only three ^UUdvUvu 

.. r " ■. CwC JL TherituatBoxrofjnirtnal funds major. U^K- . Stocks — BP, GEQ • - *rh P - ruling now. given will 
r - Ii: •' MmifwinMe tsi lltlU an^:- tfTT tondniT Will follow . cicmifiranm tnr 


- Larger.- fcmds xuay.wen dc Taxing*, in /unsreraams U1 .prime attraction of traded 

■ v.f interested in some sui^ activiiiy; th?ee jmd adding Grand Metro- ‘options is that they enable a 

Robeco, ' the -itcrgest. has done p'olitan. Land Swurities, ijaajor realignment to be made 

. r . 4 -.s»‘ same options buriness through . Coutaulds. Marks and Spencer, ^ the portfolio without the 

r “.. - .s ‘Chicago in Teceint years. . ' Shdi, Consolidated. Gold Fields-v^aje pr i Ce being driven up 

.^V.'jsJS J An nmpoattahl team £or all Commercial ^UnioiL ^pjinst them. 

' . < n 0 investors to note is' _Wth: only three UJC share ^' .Snch an operation would, it> 

l&t. HoUkod options quoted on bothmarkete* ^dentally, bring the. investor up 

. -.rs*; wiil jncur no liability for tax the immediate chotass open to- iplnst one.of the major doubts 
’ ' ^ x:- JlTrtl? S»iSfrvMn respect ot 3 investor seeking to trade, ^tarat the London system, 
‘ S.^p3ff y -racdfedte5a in options; in UJK. securities is namely the close proximity on 

-■ '.;ii -f/if smalL But of course both j&n London trading floor of the 

y r “ -markets .hope' to expand grading stands in options and 

. - ■ ■••'L j As there is iw capi^gMM . „ . . - 3* .the underlying stocks, 

r ”• irr HoiftMid. tiiere - . obvkmw Amsterdam hiftpes to increase - -More serious problems arise 
-.-r> no liability te HoUantt^for^such initial 'list of options to BO^ ffrom" present U.K. tax policies 
■■'- - f tax on profit from optinmsdeal& . ^ first year, of which 15 towards traded options (It 
' r.ri ' Offawre fuwlsiLnithe Ohanaiel^ ^ would be^ U 3 L stocks. If the^hould . be said that UK. 

.- • ■- :r ' *". 3 Islands, West Indies taxtoavens: j^tch market succeeds in lift-v-lnvestors trading in the Amster- 
.jr!?' .fit and elsewhere^ 'and; -fartrestment j^g total to anywhere near:4sop options market will incur 
?::? funds managed, for ins ta n ce, ^ Technical maximum of 140 jpo obligations to the Dutch tax 
_ rx- •£*' from Switzeriaad wihi£4i are then its list of UX auffiKities.) 

for one reason or anothear-effec- stock options would encompass- ^London has yet to confirm 
. tiveiy free-etta^> are also likely m ost of; the well-known names.: its: .commission rates tm traded 

. •■" . . . : .-• ■ ■_ , £.<j'A.a /...fUAv ' lu.* if nniii aIm* that 


« cmnissL : . '* ‘ list in due : course,-' so it would rWre strongly influenced by the 

> f ( British -^ Hwesters.;- should clearly be prepared to offer .ffltiwgo option market 




V ij 

■ “" U -j3 
yT> 

r. L - N ., 







5 — j-r :#j 

. t - SS*'* ■/ ^ % t 

«t-w . ... ■:< r 

,is 

«•- ’-•'•■JT':?-* 5 *’ k 

J. 

' ffr j 


H. Albert de Bary & Co. N.V. 
International bankers 



Herano iaa't 45qphone QgO-21 33-12/Rott*rdam. WestblMk glg.phone 01 0 - 14 43 1 1 


The recent finalisation of 
market technicalities in Amster- 
dam have thrown up points of 
detail which could significantly 
affect trading developments: 
One such factor is the choice 
of expiry dates In the two 
markets which will both trade 
three-, six- and nine-month 
options contracts. Expiry dates 
in Amsterdam will be July, 
October and January-— but with 
the significant exception of 
UK. stocks which trade to a 
February cyde with the shorter 
options expiring in August and 
November. 

With two option prices 
offered for each class of option, 
investors in UX options will 
have a wider range of choices 
open to them than wiH investors 
in other international stock 
options. 

London's somewhat compli- 
cated settlement -system seems 
to . be responsible for another 
minor quirk in the international 
options system. Expiry date -for 
options in London will always 
be on the list Wednesday of 
the last Stock Exchange account 
in the expiry month. But 
options will expire in Amster- 
dam on the Saturday Immedi- 
ately following tbe third Friday 
of the expiry month. Thus, 
U.K. investors will gain two 
extra days — Thursday and 
Friday, of the final week — if 
they choose to take their option 
business across tbe North Sea. 

Both the London and Amster- 
dam authorities' have laid down 
rules governing the issue of a 
new series of option if the under- 
lying share price moves signifi- 
cantly. But once again there are 
slight differences between the 
two rulings which can only pro- 
vide the investor with a wider 
choice. 

The net results of these 
mixed rulings will be that 
options on U.K, stocks, having 
opened with different time 
scales in Amsterdam and 
London, will then see further 
classes created ' independently 
in the two markets. This will 
have the healthy effect of_draw- 
ing investors into botir markets 
in order to find the time xpan 
or price most attractive to the 
individual. 

' For UX stockbrokers seeking 
to "participate in the Amster- 
dam venture, a key and as yet 
unresolved question is whether 
they need licences under the 
Prevention- of- Fraud (Invest- 
ments) Act 1958. The relevant 
UJK. authority has been pressed 
to confirm that such licences 
will not be necessary .but the 
problem seems likely to remain 
unresolved for the present 

Only time will show which 
market, London or Amsterdam, 
will end up with the major 
share of option business in 
UJC securities. But past experi- 
ence .indicates that activity is 
the lifeblood of option trading, 
and that the busy market 
attracts the business. Present 
estimates suggest that by 1981 
Amsterdam will be trading 
around -20.000 contracts a day. 
against estimates of 6,000 for 
London. 

Meanwhile U.K. investors 
have -plenty 'of scope for exer- 
cising their investment skills in 
the wide range of opportunities 
provided in U Jt stock options 
in the two markets, 

Terry Byland 



AMS1EBDAM.RUKSMIISUJM 


Rembrandt country is Rabobank country. 


T) embrandc found his inspiration in Holland, 

JLV yet created art with a worldwide appeal. 

The Ccntrale Rabobank also finds its inspiration 
in Holland... yec increasingly prorides services in the 
world at large. 

With a strong background.The Cenrrale Rabobank 
heads a cooperative banking organisation with over' 

3100 offices and a combined balance sheet total exceeding 
61 billion Dutch guilders (in excess of US $ 26 billion) ' 
in 1977.This makes the Rabobank not just one of the 
largest banks in Holland and one of the 30 largest banka 
in the world, but also a bank with roots in almost all 
sectors of Dutch economic life. 


T he Centrale Rabobank is now expanding 
worldwide with a hill range ot' banking 
services. To accelerate this expansion, we recently 
co- founded the„UNICO BANKING GROUP", linking 
us with five major European cooperative banks. This, 
together with the support of London and Continental 
Bankers Lrd„has strengthened our operations by giving 
international clients unparalleled on-the-spot service. 

In addition, we are active in the Euro-currency and 
Euro-bond markets. Our international transactions in 
foreign currencies, Euro-credit loans and participation in 
new issues, are showing a remarkable growth. 


Rabobank S 

Dutch Masters in Banking 


For your dealings in options; ask for Mr.H. Kuyl orMr.D.Hersch Amsterdam, telephone: (020) 24 15 52. 


ABN Bank 

Head office: ABN Bank, 32 VijzelStraat^ 10.00 PA Amsterdam. 


Public Order Member & Floor Broker 
European Options Exchange 
Clearing Member 

European Options Clearing Corporation 


7. f 

*— f» ; V, 

a :. r. 







Koopmansbeurs - Commodity Exchange Amsterdam. 







: T Financial Times Tuesday 41973 


The European 
Option Exchange: 

an Interesting 
development which , 
requires expert advise 


In otherwoids: 


call Bank Mees &Hope. 


BMH 


BANKMEES &HOPENV 


Amsterdam Head Office: 

548 Herengracht, phone 020-5 27 22 50, 
telex 1 1424, cable Meesbank. 


After 73 years, 


EF Hutton & Company 


stil nasone 



In an industry that undergoes ups and downs, 
mergers and constant change, H.F. Hutton has always 
stood for reliability and dependability. 

Through all those years, weve maintained an un- ' 
broken record of profitability and of continuous service 
to our customers. 

And now, as we approach our three-quarter century- 
mark, that stability seems even more impressive. 


IFHutton 


INTERNATIONAL 

ATHENS ■ BRUSSELS ■ FRANKFURT ■ GENEVA ■ HAMBURG ■ LONDON 
LUGANO • MADRID - MUNICH ■ PARIS 


We are a Public Order Member and Floor Broker 
of the European Options Exchange. 


EUROPEAN OPTIONS EXCHANGE IV 




WITH THE operation of the- 
new traded options market in 
Amsterdam' beginning to-dey, 
and tbat of the London market 
due to start in less . than three 
weeks’ time, it might have been 
supposed that- whatever the 
divergence of views on the 
utility of the new system there 
would at least be some con- 
sensus by now- on its use as an 
investment tool. But not so; 
the .arguments rage as fiercely 
as* ever. Proponents of the new 
System hold that its use will 
enable investors, to limit their 
risks - and increase their " re- 
turns: opponents hold that It 
will provide some stockbrokers 
with a fine opportunity for 
making . money, and a great 
many other people with a fine 
opportunity for losing it. 

The first point to be made 
about the use of traded options 
—or, for that matter, the tradi- 
tional variety^-is that they do 
not eliminate the responsibility 
for making investment de- 
cisions on the underlying share. 
The use of options will limit 
risk — or increase reward— at 
the margin, on - a short-term 
view; but will not provide a 
substitute for longer term de- 
cisions to sell or to buy. 

The second point to be made 


Br^/* 


is that, at least in respect of 
TJJS- investors, the tax treat- 
ment of options is still onerous 
in the extreme. As of here and 
now options are treated by the 
Revenue as «. wasting asset, 
whose value declines as it ap- 
proaches maturity; that being 
the case, any loss in the value 
of the option attributable to 
the lapse of time is not allow- 
able for capital gains tax pur- 
poses. So anyone who allows 
an option to expire uhexercised 
is going to end up with a loss 
which cannot be- offset against 
gains elsewhere. The implica- 
tion is that, unless and until the 
Revenue’s approach is modified 
—and so far the hopes" that it 
will be seem to rest very largely 
on the fact that the Bank, of 
England has not opposed. the 
new market — options to boy .are 
assets to be held (at any rate by 
those liable to capital gains .tax) 
for as short a time as Possible. 

The purchase of a call option 
provides, at its most obvious, 
an opportunity to obtain a rela- 
tively high return for a rela- 
tively small outlay — assuming, 
that is, that the price of .the 
underlying stock appreciates 
enough to cover both premium 
and commission. However, it 
can also provide an opportunity 


.to limit risk, in two ways. 

Where the investor would 
' have bought the underlying 
stock; but feared a fall in its 
price, he can, instead, put most 
of the money into some form 
of rather more secure invest- 
ment— the money maricets, for 
example; and he can spend the 
balance — just so much as he 
does not mind losing — on 
acquiring rights to that stock 
at- a given price. IT the price 
of the underlying stock falls by 
rless than the cost of the pre- 
mium. then he will, of course, 
have lost his money; and even 
If the pri.ee of the stock rises, 
he '-will have limited his gain. 
But at least he knows what his 
maximum exposure will be. 


them out in turn by by bn* - 
a matching call option, j 
will not eliminate the loss 
toe feU, but it will provide sc 
cesh from the premiums 
offset it. 


How EOE 


works 


WHEN DR. Frans Andriessen, 
Holland's Finance Minister, this 
afternoon opens the £3m. 
European Options Exchange in 
the converted corn market next 
to the Amsterdam Stock Ex- 
change. he will mark the 
culmination of three years’ 
planning of this new market 
venture which, though Dutch- 
based, looks well beyond 
Holland’s frontiers. 

The international flavour is 
seen in the exchange’s struc- 
ture, with the concept of the 
central clearing corporation and 
big clearing members — closely 
based on the Chicago Board 
Options Exchange; in its 
diverse membership: in the 
range of shares in which 
options will be traded; and in 
the composition of its ruling 
Council. In addition to six 
Dutch members, including the 
chairman. Mr. E. M. M. 
Lemberger. the Council will 
have one British member, Mr. 
Christopher Whitehead of 
stockbrokers W. L Carr, and 
one each from the U.S. and 
France. 

The nature of the exchange’s 
organisation, in which some 
powerful international con- 
cerns will participate along 
with Dutch banks as clearing 
members, is essential to the 
modern idea of trading in share 
options. 

Instead of an option being, as 
in the old-style business, a 
bilateral deal between the buyer 
and the writer (giver), which 
was either exercised or expired 
valueless, options will be in 
standardised form as to exer- 
cise price and expiry .date, 
making trading feasible. 


Element 


A further vital organisational 
pre-requisite for trading is the 
arrangement by which each 
option deal, when concluded, is 
translated into a transaction 
with the central clearing cor- 
poration, so that a major 
element of assurance and safety 
is introduced into the whole 
complex of deals. The Euro- 
pean Options Clearing Corpora- 
tion (owned by the EOE) thus 
takes over as the counterparty 
to each participant who deals, 
standing as the writer to each 
option buyer and the bolder to 
each writer. 

The clearing corporation it- 
self will thus have a series of 
matching obligations and rights 
in relation to each deal. Suppose 
that buyer A purchases an 
option to acquire shares of XYZ 
company at 150, the writer being 
B; the clearing corporation will 
assume the obligation to deliver 
the shares, relying on the right 
it takes over to call on the 
writer of this, or a similar, 
option to put up the shares if 
the option is exercised. If the 
price rises to, say, 170, the 
holder may exercise the option, 
and the clearing corporation will 
then assign the responsibility to 
provide the slock at 150 to a 
party who has written such an 
option. 

The clearing corporation does 
not, however, deal directly with 
the ultimate client, who must 
place bis business through a 
public order member, who, in 
turn, must use a floor broker if 
he is not one himself. 

A further crucial stage in the 
process is played by the clear- 
ing member who stands between 
the clients and brokers on. one 
side and the clearing corpora- 
te .n on the other, as a guarantee 
of the former to the latter. Clear- 
i - members also act as clearers 
and guarantors for market 
makers, who will continuously 
make prices in the various 
options on the floor of the ex- 
change. In some cases, such as 
Che international First Options 


of Amsterdam, the clearing 
member has a. considerable 
number of market makers under 
its wing. 

To those coming afresh tp 
traded options busines, the role 
of the clearing member may be 
difficult to understand at first, 
but it is vital in affording a 
further important layer in the 
guaranteeing and organising 
arrangements. 

The clearing member in effect 
takes responsibility for the 
trade he clears (handles), 
guaranteeing to the clearing cor-, 
poration that, for instance, .the 
writer of an option will fulfil 
his commitment to put up shares 
on which he has written the 
option if called upon by the 
clearing corporation to do so. 
In accordance with this, ' the 
clearing member is expected to 
receive, via the public order 
member, the ma r gi n {the shares 
themselves or cash, etc.) equal; 
to 260 per cent of the premium I 
(option price), which the writer; 
has to put up as assurance that i 
he can meet his obligation. > 

Since dealings will be in the j 
currency of the various under- 
lying shares, it is appropriate 
that the clearing members 
should be sizeable concerns 
with international connections, 
banking or otherwise, and there 
are important stipulations as to 
their size. 

The EOE has accepted 11 
clearing members from the 165 
applications it has received for 
different classes of membership 
—which also include 55 mar- 
ket makers. 

One of the clearing members 
is First Options of Amsterdam 
(FOA) jointly owned by First 
Options of Chicago, claimed to 
be the largest clearing member 
of the Chicago options ex- 
change, Barclays Hoi, the Dutch 
concern controlled by Barclays 
Bank International, and British 
stockbrokers W. L Carr. FOA 
offers a clearing service to other 
members and wiU also clear for 
a number of market makers. 

Another clearing member is 
Merrill Lynch, the U.S. concern 
which is the world’s largest 
stockbroker. It will also provide 
a clearing service and will dis- 
seminate material on each day’s 
business on the EOE to a wide 
range of its offices around the 
world. Bauque Rothschild of 
Paris is another clearing mem- 
ber. 

Prominent Dutch clearing 
members include the large 
banks Algemene Bank Neder- 
land and its Mees and Hope 
merchant banking subsidiary; 
Amsterdam - Rotterdam Bank 
and its Pierson Heldring Pier- 
son subsidiary Rabobank and 
Nederlandsche Middenstands- 
bank. K^s- Associate is. another 
clearing member. 

Market makers are drawn 
largely from the U.S. and Hol- 
land, while the many public 
order members include E. F. 
Hutton International, Societe 
Gene rale and Gerard Stevenin 
of Paris, Bond partners of 
Lausanne, Kreditanstalt-Verein 
of Vienna and the Belgian con- 
cerns Kredietbank and . Marte- 
laere. The exchange hopes for 
a wider international member- 
ship, from Britain and else- 
where in Europe, as certain 
national problems are sorted 
out. 

On the wall of the new 
exchange is a handsome mural, 
surviving from the former corn 
market days, depicting first a 
sower and then a reaper. Spon- 
sors of the exchange will doubt- 
less hope that the second scene 
proves truly symbolic of a 
harvest to be reaped in due 
course from the major outlays 
of cash and effort on the new 
project 

M.E. 


Hedging 

' Conversely, the bearish in- 
vestor who wants to sell short 
can limit his exposure by hedg- 
ing the sale with the purchase 
of a call 'Option. Again, he 
stands to lose the money that 
,he ; has spent on buying the 
call; should his underlying 
strategy prove to be right, 
effectively he will have limi ted 
his gain. 

For the writer of an option, 
too, the most obvious benefit is 
an increase in the return. To 
gb by experience so far, rela- 
tively few options are likely to 
be exercised against those who 
grant them — though that may 
change as the introduction of a 
traded options market makes it 
possible for investors to put a 
finer price on the balance of 
risk and rewards Where an 
option is not exercised, the 
premium paid to the man who 
wrote it is so much additional 
income from his holding in his 
'stock or — if he has taken the 
high risk course and written 
an option without the stock to 
back it up if need be — from 
his willingness to expose him- 
self to a potentially unlimited 
risk. 

However, writing options can 
also be a method of limiting the 
risks implicit in a . potential 
decline in the price of the 
underlying stock. It is not 
until the price of thst stock has 
dropped back to his exercise 
price, less the amount that he 
made on the premium, that the 
option writer will be out of 
pocket With exercise prices 
and expiration dates standard- 
ised in the new traded options 
markets, it will be possible to 
write a series of options as a 
stock •falls. closing each ' o f 


- Wil b the new traded ops •/’ 
marketa-in operation there ■ 
from now on be two * 
specific elements to the im 
men* decisions to be made 
relation to options. The i 
hia S® s on the question 
whether the investor's judar 
in relation to the behaviom 
the price of the tmderh - 
share was accurate; the sec 
hinges on the question of v ! 
value: is to be attributed in ■ 
-option itself. Since options! 
a finite life; and part of " 
value to be attributed to t 
at any stage will represent 
unexpired time, the price of 
option and the price of 
underlying share will not m 
sarlly move in the same a 
tion. 

The connection ought, 1 
ever, to be a dose one, bee 
it is the size of the prem 
which will determine far - 
meat decisions in this mm 
rather than the standard - 
exercise price or expiza' 
date. Of course these far. 
will affect the price to be 
upon the premium — in addj 
to other facts like the stat v 
the market, -the outlook ^ 
interest rates, and the ext«„ 
which the underlying sb" 
have traditionally' fluctuf' 
That last factor— evaluate : 
the volatility of the underC- 
share price— will prob&blj 
the one on which opinions 
really diverge* although t " 
by the American experience 
market is likely to be his 
influenced by theoretical: ' 
mi urn values establi- 
through the use of valu 
models. 

• As the - stockbrokers- - 
busily establishing vain 
models of their own kee? 
pointing out, if the size of - , 
mknns is -to be influence ~ r 
such considerations, then . " 
are something .which jjtve- 
cannot afford to ignore.: 1 . . 
probability, however, it wflr 
pay anyone— whether in', 
tional investor after an Inc ■ 
in his return, or private fnv ; 
looking for a flatter — to be 
too sophisticated about u 
whole affair. The costs of 
ing .are likely to inhibit, 
really complex attempts tt 
tune risk and reward. 


Zinc bo 


Adrienne’ 


MARKET REPOS 


FIRST OPTIONS OF 
AMSTERDAM B.V. 


Clearing and Floor Broking Members of • 
the European Options Exchange : >, 


■Jices 


Providing a Comprehensive Range 
of Services to ' 

Market Makers and Public Order Members 


. Dwight Koop - General Manager 
• Steve Schwarz Operations Manager 


518 Herengracht, 
Amsterdam, 
Netherlands 

Phone: 249192 Telex: 15635 


First Options of Aznsterdam B.V. is johtfiy. 
by Barclays . Kol & Co. N.V., ■ a sotediaiy^ 
Barclays Bank Intm^onalXtd.'.pf 
■ Options of Chicago, 'Inc., member of au . ■■ 

U.S. securities cscbangea. and W. I Carr, ;• 
&Co/ (Overseas j,. a- subsidiary of Ca 5 ri . nt , 

& Co., Members of The Stock Esiaoge. V 







fr-J , ‘ ■•••!•.* 










|?oTttesaay^ipilI.*4 ■•1978 



39 

IiN G AND 

I 

RAW MATERIALS 




ta?h 3Ptl ? M Ji 
rei 3 '==Vo!p^ 

L ‘ Sr.-rv, ;° r ^baJ‘ 

s ^ ■Sjs 
S. a i?,SiS: 
S“»SS§ 

o-..^ &e l > 

s-'a-taS 


.*/$!"■ Coromefditks Staff . 

; j^! 6 w«DiiF«(ar I i a e 

<! ec ®y«n>d.-driamfr 
SSS-:® Rawest conditions, 

returned to .aormaI v after^ the^ 
Previous gear’s drought*; - 

■ •Figures 1 v of ‘ food "; supplies 
JJJWf ^ D f* n Sum 0 ti 6 iQ 'te 1977, 
vrtach-uwludfi wastage as well as 
«ome and restaurant eating, show 
ratlS 

totalled Tia itllos a head, 24 per 
m“L .^ore than In 1976 but 
W- Iwtow the 1975 



«iSL re ¥,^> the) 
^■^SlTy o £ Agricnlture. yester- 
day, also records an increase in 

5?? t SS£? 0ll t f oth " ^geUbles. 
Xhe. tot^l a head was « 3 -kilos 
against- fiCS-Wlofr in' 1976; • 

Other '.foods' consumed in 
greater 'quantities Included meat 
eggs, oih-iMid ftitK But Britons 

Sfrf ^ ar - fruit- pulses 

and mas, and grain products. 
JK? .“et resnlt was x martfnaj 
iall in the wiergy. value of OJC 
■food supplies in lStf7. 

pemostdxamaiticfaJlwafl'for 
coffee, which was down - nearly 
•JP PfT ee°f because of excep- 

tiOnatTvhiol* - « 




tiona 1 1 y_hi gh ;j?r Ices early STSe 


‘ v ‘ : -e pri» 

* marie? t-T “* s 

vo“ .;?;... | w«5i' 
5 

i-’i? 

\ !ic Ansr.ran (3 

V7 «***; 

-■ - *ita« at 
!ne Me ol n 


■ J“ r -. T®a drinking increased 
tnragtnaLIy despite higher prices, 
feer consumption tost most of 
l 9 I« ° n »*Utre-a-head rise, 
settling, hack to. H 7-8 litres* 


Bulk shippin g 
of commodity 
exports urged 


r -> 


As 


•': 1 w D fe 
VJ *. :: the ajr 


“•—hi. VJ*. ‘.Z *£0 cj* r 

um i •_•: ?j 'j£ injjgg 

r * lucri’Jons. ^ 

1 t ?' *"*^* " *^ ,a »rhi*« _ 


..a ^ 

’ which =; 

^ : :T ri rd :>> -tots.- 

'~* r n 'v.^rer.ni. 
m.'-.i -r.-y—wzile : 

“•I I "*tV- r afloat 
’. , :r::.orp!sa»r 


KUALA LUMPUR, AprU %, 
MALAYSIAN COMMODITY ex- 
porters were inrged here m use 
cargo consolidation schemes " 
bulk shipments because, of rii— *, 
freight rates fixea by conference 
shipping lines. • - j ‘ 

Mr. Lew Sip .- Eon; Deputy 
Trade and. Industry :Mypster, 
opening a meeting oh" .the 
economics of cargd ponsolHfctSon, 
said the Godemmttif fealjsed the 
advantages of cargo 
and shipping in bulk. ItiWas 
prepared to. assist SbSptwrtf. -In 
such -metfaods.Qf tn^sp^^jtioo. 


. , . a..-, ej;. 

orpnrair 
■!c;rr -n, Scsa-sjj 
! F-’-'-.^Wa ab?r 

■•-•■ a:?-.-. Thecjijt 

: ar.: l.F.civ rfit 

awss: 

tc r:-i: revrari. 

& j * n. 


Adrienne (k 


There would be' dppuWjM Jn 

tioa scheme in' iSe^nitial 
but- they, could be oyexcOnS) 
the co-operaabhr hf 
organisations; ' - 

He : suggeiW 
porters and commodity ’i 
tions should lauhchr a . pflot 
•“-sctio Jest such sebatus.'' • 
enter - - -& 1 *- 7 " 


uv 



market down after 
Brazil cuts minimum price 


IUCHARP t^PNEY 

rCOFPEE PS&tg^on the Lon- 
don futures mjjSjet fell yester- 
day after newu^’ftat Brazil -had 
reduced its - : mb&num export 
price and hjq^rlr^ax (contribu- 
tioh tpidta).. . Taie July position 
slipped to £ 1^0 a tonne in the 
morning but recovered to close 
£46-5 down on the fldy at fl^31 
a tonne., ' 1 . *v ; 

This would see&n to Imply that 
the- BrazIlian news was received 
bearistOy,' hsuf^Pmesl ' dealers 
expect -the *ctias&tefcen at the 
weekend; . tp mate, Brazilian 
coffee more expansive on the 
international -markets. 

■ Most Brazilian , coffee is 

exported - under’'^8peeldl deals 1 ' 
negotiated dtreqtt? with major 
maaufacturer&^rSeisirare offered 
at prices reduced by discounts 
which are hnked^db^difference 
between - the oi&aal 1 minimum 
export prire^ anijffifesical coffee 
indicator prices sjlpuated by the 
International GdSre ' Organisa- 
tion. • .- : : 

In recent- Brazil's mini- 
mum export mice has been well 
above pbys^&.T.pajces so a re- 
duction' in ' 
the. ga 

the dia,._._ 

The'^ate^t ^.Brazilian move 
reduces :• tee .. mW " n m export 



former narrows 
njt^be value of 


price by 30 cents' to $1.70 cents 
a pound. It is being assumed, 
according to London market 
sources, that the discounts will 
also go down 30 cents a pound, 
it is not certain, however, 
whether the calculations deter- 
mining the special deal price 
levels have been changed In 
any other ' respects. 

At the same time the export 
tax has been reduced by $30 
to $90 per 60 kilo. bag. equivalent 
to 22.6S cents a pound. The 
move appears to have made 
Brazilian coffee exports 7.32 
cents a pound dearer — the 


difference between the reduction 
in the discounts and the reduc- 
tion in the export tax. 

This complicated explanation 
seems to have cut little ice with 
futures market speculators. They 
preferred to take the price and 
tax cuts at face value. 

One dealer suggested that the 
move might have had a psycho- 
logical effect on the trade 
(professional dealers) because 
it took the Brazilian official price 
well below the traditionally 
significant S 2 a pound leveL 

Others saw it as “a slap In 
the face” for the Central 
American “other rallds " pro- 
ducers who recently launched a 
bid to boost prices by agreeing 
among themselves to withhold 
coffee from the export market 
until prices improved. 

Brazilian internal coffee buy 
ing arrangements have also been 
altered. The Brazilian Coffee 
Institute will buy 1977-7S crop 
coffee from ail sectors oF the 
trade at '4500 cruzeiros a bag, 
reports Reuter from Rio de 
Janeiro. 

The institute previously only 
bought coffee at this price from 
farmers and co-operatives, 
whereas the price for other sec- 
tors of the trade was 1,250 
cruzeiros. 


Cautious 
trend at 
tea sales 


By Our Commodities Editor 


Zinc ioosted by output cuts 


BY JOHN EDWARDS, COMMODITIES EDITOR 

ZINC VALOE^rtpq^o the high- Hoboken-Overpelt plants, 
est level stnj»r^}^&mber on the The scries of production cuts 
London Met&t-EXmiange y ester- announced in the past month by 
day foBoT(idni^ Ji iHevg?i'af further European smelters has aroused 
production Swcrnmours- of feelings that there might be 


It £292.5 
tote 
with the 
Aradu 

dr e 

After the?* 


a 'possible rise ta : the official some concerted action by pro- 
jJE^iropean WHjjkKtp ducers to lift prices- to more 

Cash zUiqj : £toi&*£!.25 higher economical levels by reducing 

S t £ 292.5 tLj^eJrfet-moved up supplies. 

1 tota' . ; ■ Braca dealings - The' latest rise in prices, and 

!o ${&3 Quotation fall in the value of the dollar, 
1 -after- closing means IMS values are well 
. above the $550 a tonne European 
juier -ine> 4 ,F' 3 HHftet' closed producer price. This has led to 
Asareo, the higj pJSl producer, speculation that it might be 
announced ft was ctttting output- raised to $600 soon; 
at its Coipas^G&ri&i electro- The announcement that the 
'Jytic. zinc : per cent, “wildcat" strike at the Hoboken 

due to poor^cbfidillons in the Olen copper refinery last week 

became official yesterday gave a 
jty- of more temporary boost to copper 
a year but prices. But it had largely been 
'at the rate discounted- last week and Societe 
•Generate des Mmerais con- 
follows a firmed Hoboken would continue 
i by lead- to respect copper price fixings, 
if produc and not declare force majeure 

_ _ jerday by for the time heiu$- Prices lost 

. at •. tiwSiSodete de ground on the weaker trend in 
' s fib&tfBdgb region the "dollar and profit-falting in . a 
Ijjf. Belgians And renortefi stop- somewhat overbought market 
lit "V feUe ' MotfbU&fe" and An unchanged. warehouse stocks 

■-W*'*r* «? ’r t. .- . * . C j. . . -, . . ■» .. 


.The' plant hak o 
ihan 109 J 100 , 

of about 
‘The 

of-, 

ea 

i'Tads, 


added. 


figure, after nine consecutive 
weekly declines, suggested that 
the outilow or stocks might have 
come to an end. 

All UJS. producers have moved 
their prices, to $4 cents a pound, 
and with Zambian supplies cut 
they might be less keen to press 
for import controls when the 
hearings by the U.S. Inter- 
national Trade Commission 
start on May 22. 

A strike at the Hoboken lead 
plant Which has an annual capa- 
city of 125,000 tonnes of lead and 
1,800 tonnes of silver, lifted lead 
prices temporarily. But values 
later fell in line with copper. 

Tin was depressed by a decline 
in the Penang market at the 
week-end, and an unexpectedly 
large rise in LME warehouse 
stocks, which increased 255 
tonnes to 3,815 tonnes. Fore- 
casts of fresh arrivals of supplies 
widened the discount of cash 
to the three months quotation. 

LME silver - holdings fell 
20,000 to 190,000 ounces. Zinc 
stocks rose 200 tonnes to 60,350 
tonnes and lead by 275 tonnes to 
83,275 tonnes. 


U.K. lea blenders made a 
cautions return as buyers at 
the London tea auctions yester- 
day after -a four-week absence. 
The main buying interest was 
concentrated In the lower 
quality range, with little 
competition above 130p a' kilo. 

Price Indications were 
quality tea 140p a kilo average, 
medium 12Sp and plate 92p- 
This compares with the last 
price Indications, issued after 
the February 27 sale, of JL52p 
for quality, 132p medium and 
95p plain. 

Blenders stayed away from 
the auctions for three weeks, 
before the Easter holiday, wait- 
ing for Mr. Boy Hattersley, 
Prices Secretary, io decide 
whether he would Impose a 
maximum retail tea. price to 
force the reductions recom- 
mended by the controversial 
Price Commission report. 

Mr. Hattersley concluded 
that shop prices had come down 
enough, and It was noticeable 
at yesterday's auctions that 
buyers were reluctant to buy 
teas they might have difficulty 
in blending down io a lower 
average price. 

But demand is expected to 
build up again as blenders 
replenish stoeks and retailers 
do longer hold off buying in 
anticipation of lower prices. 
Loudon auction prices are still 
above those in Mombasa and 
Sri Lanka, but Indian values 
continne to be boosted to 
higher levels by strong 
domestic demand. 

Our Colombo Correspondent 
writes: Pakistan's announce- 
ment of increased import 
duties on bulk teas (45 to 60 
per cent.) and on packeted lea 
(75 per cent.) bas caused 
serious concern here. 

Pakistan become Sri Lanka’s 
biggest tea exporter after the 
Bangladesh war, ousting 
Britain from its traditional 
leading position. In 1976, Paki- 
stan bought 46m. kilos of 
Ceylon tea. spending nearly 
$100m. Last year Pakistan 
purchases reached 60m. kilos. 

Officials here understand the 
Pakistani decision to raise the 
import duty on tea as an 
attempt not only to reduce big 
trade balance with Sri Lanka 
but also as a result of pres- 
sure from Bangladesh. 

Colombo tea brokers antici- 
pate further large seale 
smuggling of Indian teas to 
Pakistan, however. They also 
expect quality Sri Lanka teas 
exported io Afghanistan to find 
their way <o the Pakistani 
market, where premium prices 
could be fetched. 


EEC AGRICULTURE 


Battle looming on 



price rises 


BY MARGARET VAN HATTEM 


THE ANNUAL EEC farm price 
review, which gets down to 
business in Luxembourg to-day, 
promises a tough fight for the 
EE C Commission as Retries to 
hold farm prices in tbe Nine to 
an average rise of just less than 
2 per cent for the next year. 

Ministers are not expected to 
take final decisions on th e Co m- 
mission’s proposals, presented 
last December, before fbe end of 
the month. But this week’s 
meeting represents the start of 
detailed negotiations, delayed 
until now by tbe French general 
election last month. 

Mr. Finn Olav Gundetoch, -the 
Agriculture Commissioner, has 
made it clear in the past few 
months that he intends to take 
a bard line on prices in an 
attempt to curb the Community’s 
endemic overproduction. 

Few would dispute that con-, 
sistently high EEC farm prices, 
which for some products are 
almost six times as high as those 
on the world market, have en- 
couraged production way beyond 
tbe Community’s needs, leading 
to the' notorious “mountains’* of 
miik powder, beef, sugar and 
butter. 

But the Ministers who 
negotiate the prices are Ministers 
of Agriculture, not food, with 
the exception of Mr. John Silkm, 
wbo is Minister of both Agricul- 
ture and Food. Hence they are 
more interested in protecting 
Fanners’ in comes than in shield- 
ing tbe consumer. 

Strong pressure for a higher 
rise io farm prices is expected 
to come from Germany and the 
Benelux countries, whose 
appreciating currencies make it 
impossible for them to give their 
farmers an increase m incomes 
by manipulating tbe “green 
currency” rate by which common 


EEC prices are translated Into 
national currencies. 

The weaker currency countries 
— Britain, France, Italy and 
. Ireland— have all managed to 
square their positions politically 
by devaluing their green cur- 
rencies Is the past few months, 
boosting farm incomes ahead of 
the private negotiations and thns 
making a low average rise more 
acceptable. 

France and Ireland will prob- 
ably seek further devaluations 
during the price talks this week. 

Nevertheless, these countries 
are unlikely to support ■ an. 
average increase as low as 2 per' 
cent Even Mr. Silkin, who 
initially said 2 per cent was too 
much and threatened to press 
for a price freeze on surplus com- 
modities, appears ready to take a 
softer line. 

He is determined that the com- 
mission’s proposals to continue 
.the UJCl Milk Marketing Boards 
system should , be' included in the 
prices package. 


Controversy 


These proposals, which would 
Board's monopoly on 


weaken the . . 

the XJJK. market but nevertheless 
allow them to maintain a fairly 
protectionist policy, are strongly 
opposed by Germany, Denmark 
and the Benelux countries, who 
see a potential market expansion 
for their currently higher priced 
dairy products. 

Recent comments by British 
officials indicate that Mr. SUkia 
might relax his stance on prices 
if it means getting the milk 
Boards proposals through. 

This week’s two-day meeting 
is expected to open the main 
areas of controversy in the Com- 
mission’s proposals. This will 
enable the Ministers to take up 
their positions for the most inten- 


sive negotiating session, which 
starts in Luxembourg on April 
24. 

Milk is likely to prove one of 
the thorniest issues. The Com- 
munity’s surplus of skimmed 
milk powder stands at 829,000 
tonnes, and priced at nearly - six 
times more than the world 
market level, will not be easy to 
dismantle. 

The Commission has proposed 
a 2 per cent, increase in tbe 

target price for milk and a 1 . 6 . 
per cent, rise in the intervention 
pricef or skimmed milk powder. 

But Italy has already rejected 
this as “unacceptably low" and 
sixnirar opposition is expected 
from Ireland and Benelux. 

Beef, of whlcb tbe Community 
has a 360,000 tonne surplus, is 
also likely to raise problems. 
Not so much regarding prices — 
tbe Commission has proposed a 
1.25 per cent, rise — but with pro- 
posals to reform the intervention 
system, which would allow 
greater flexibility in suspension 
of intervention buying- 

Proposals to reduce support 
for sugar producers by cutting 
the so-called “B” quota to the 
equivalent of 20 per cent of 
the “A” quota, instead of the 
present figure of 35 per cent, 
has already been rejected by 
France and Belgium, though 
supported by Germany, the U.K-, 
Denmark and Italy. With the 
community sugar exportable 
surplus running at 3.3m. tonnes, 
this is another crucial area. 

indeed the main disputes 
might centre on ancillary issues, 
rather than prices. Apart from 
the milk Boards and beef, other 
important areas for disagree- 
ment are the pigmeat monetary 
compensatory amounts, and the 
proposed new EEC common 
regimes for potatoes and sheep- 
meat. 


Confusion over Kenya maize ban 


BY JOHN WORRALL 


NAIROBI. April 3, 


THERE IS considerable con- 
fusion in agricultural circles 
here over the Kenya Govern- 
ment’s ban on the exports of 
maize. The Maize and Produce 
Board is trying to get clarifica- 
tion from the Government, 
especially as the storage 
facilities of the Board are 
crammed with maize and fanners 
are waiting to send in tbeir new 
stocks. 

“Kenya is in a position to 


export maize now,” said Mr. Bill 
Martin, general manager of tbe 
Maize and Produce Board, this 
week-end. 

“Our storage facilities are full 
and if the farmers cannot send 
in tbeir new stocks these are 
likely to be ruined.” 

The Board had planned to 
export 3m. bags of maize (11 bags 
e*ual ono tonne) out. this was 
stopped by the Government 
during the week. 


Mr. Jeremiah Nyagah, Agricul- 
ture Minister, said the ban was 
to ensure “beyond reasonable 
doubt that tbe country bad 
enough maize to ensure self- 
sufficiency.’’ . 

But Mr. Martin said tbe Board 
had a stock of 5m. bags, enough 
to feed the country for more 
than a year. In addition farmers 
in various parts of the country 
had an estimated 3m. bags in 
store. 


T 


rrr 


COMMODITY- MARKET ;J<EPO RTS AND PRICES 

m ,. . — • ' . •- L *' ■ Vu-a . - * . . imu _ re aim tk htm a anwi mm - iw 


n t er tUCTP A'i (C'-.'- XBrtr^WtataiwTftrea mamba £7M, % OJftO, fl.te. Afternoon: Standard, throe S70A, a; Oct. S73J1, 575.0. 37*W73.B. ■ 7. £8X80. Feed barley: S. Bast 0X30. S. Scottish mKHmn SOJ to 8X0. heavy 40.B 

KAafe llIKiALo- S V* - manma lSuSax £X7»S ax TO, ra, b. Kerb: Toni sales: 87 lots. _ Wew l7XM._Eastera JJXSO, E. Mhnawhi to M Imported frozen: NZ PL 4S.0 


PRICE CHANGES 


copper— L ower on the 

Bxdivqn.- »iyf to _ . . 

prwnarjCM owing - to the .SrinathisT- 
sterling, f orwsrtL mat*! rallied to BffWf 
following news. of * strike at the Otan 
smelter. This . levd attracted prnai-- roe t 


1035 (I 

yi b.v. 


taktng, however*, and the nriCfi wakened 
to close at £5*8 " 


on the late kerb, 
over 1X525 tonntt. ■ . 


litfil Tin— UK^srum. Forward Standard .Standard, three months £5.780. 85. ve. 75. • Sales: 3 (2J tom of U5B0 Ulos.' • £7X20. East £72.90. N.' West £75 IM. to4AX . . mt ^^ ea 

m ^metaToosw* Jower * ««. r«Ee5na W. m . . BRADPORP-The market remains nnlet Scotland £74.00. UJC. TO.10. MMtoa Porks EngBsh. teas than WU»**. Baua - 

- - ' — pgjjjjjj, mirtM rherfe- > . LEAP— Caster. • ■ Forward . metal though soma topmakers have raised, prices barley: Eastern £77.10. E. Midlands £7830. to 43.5, lOO-tSt Ihs 3X0 to 43.X m-SB8 ■ 

fo Howtos charttot selling -tperttened to JSJ5 on the pre-mart et tot- Sp*p, mainly reflecting the fan in -the W. Midlands £7X30. PT. East MOJO. Scot- lbs 3X0 m 4LB. • . 

IlnuktaUon prompted by lwtaE the downturn In copper. The rally vatae of sterling. . . land £83.80, C-K. £18JX ***** COMMISSIOR— Avera*e_ totoiock 

than eftected risoto ware- r to copper tten took the price bp to £310 mrrTrr' Highest price paid for roalttns barter orices at ' ™^“"“tittve martau on 

' •- — l.llwHhK . was £85 hi DarUmctan. AprD X cutis nsjrp » ■ rgJ.w. 

WI I LE UOC. forward prices tor deUverr dnrtiw: . UJC^-Sbeep 140.9P a kg. «t 


per tnnim unless otherwise 


COFPffR 




OdWal I J-pwjBhpaa 4- 



, Abo the weak-: bm It. fdl afresh. In. ihe . afternoon to 

prices were ejtpectaUona of more dose at Wi .on the late kerb. Tnrn- 
of ^netal on to 


■ ? After foring 

__ in tho afternoon, forward 
ttaal{y-Z9,7M on. durlate kerb; 


!+?_ 


69B-.5 
3 months-.! 71A^-S 
Settl’in’m 6BB.B 
Cathodes^! ■ • 

Cash-. ; 689.5-00 + * ^ 


®. j' -o ypr %380 tonnes. 


fnrtbq; 

metal 

Tara- 


BS4-0L 

70946 


3 monUM-l - 704-i |+5^ 69UA4 j-8^ 
BetH-m'ntl - 690 .-{+3 L;' r ^_ 
lJA£mU_. . ~ -r* 1 -.V 


Amalgamated Metal Trading 
tharln Tbe mornlng cssb vrlrebar* . 
at SB09 .- throe months £712, 13, U, 15. 

.1X5, IX 14. 14.- CathodM. _ , 

JH895, three months S7M5. Kerb- Wjte J 

bars, three , months £714. AftgnnooiM. Morning: 





684.54^5‘^lffi 


583ti^ 

BSStVfi 
. 5885 
B.-I »tai2 

Now T« ' 

_ 'studanC 
32. three ntontba . &8M, . «. 


i — 7 


— l*-™- I 

DmrfTlrlal 


. LEAD 

- awn.. 
Official 


1 |*.tt. 

| Unofficial 

+ or 


'£. . 

£ | 

£ 

£ 

Ctoaiu 

3lii4. 

+2-ffi 

611.5-8 

-B.2B 

& wathu.. 

5183-9 


JI7-.B 

— e-4u» 

SaU'lm-’u 

Bid 

t+SJB 

■ — - 

...... 

TTjAdor. 




_—r 



+ « 


ROBUST AS opened sharply lower aa Mny— Mllllna wheat (bread) 80S tonnes, dx.w. t+l-7»: CB— Pigs 62-Op a ksJ.w. 

heavy trade acJUng ■ hit oil co mm i ssi on aw. Mlfllnn wheat (other) IS12 tonnes 1-0-5'- Essland and Wa l ca Cattle. Metam. . 

boose- SI up-toss orders Jr the. 'May bq.to; Feed wheat 1.6S6 »iw** £83.«l! »verage price 68A7p (—0.16); Sheep. AJunilmuni.„.-~...|roTO 
position. Droxel Burnham Lamberr Feed barley 3.080 tonnes £7C80 June— average price I4IJ5P I— 2Ji; Hgs. _ rrre manes 

rcpoim Values steadied and the day MlUlnp wheat (bread) 98 tonnes JPR.M; average price map (-8.5). ■ . ^ 

was baalcafly . -onlct with the marker Mining wheat (other) 878 tonnes £84 00: No number changes due to the holiday 5nin«he va. do. 

trading in a (3D range. Closing levels Feed wheat X.B4B tonnes 187.70; Feed -last week. CwteCatbode...-,—! 

were 533- £85 lower on Ihe day. Dealers bariev uas lonna £78 80. SeatbMd— Cattle up 28.7 per cenu dmottihe do. do. 

said much of the decline was probably eec IMPORT LEVIES— Effective (n- avenue price 67^5p (+2.73>: Sheep up ()oid ...Tn^ at. 

— duo to the effect on market seoumeu of day. in units of accmmt a tonne. In DnKt' 18-2 per cent., average . price •“ 


Morning: cash £314. three months £318, Brani lowering her erpon reglsinilion cnrreni levy phis May. June and July (+0J): Pigs down 23.9 per cnt., average Smonths. — 


6740-50 -157 A 38J. Kerb: Three monHis £318.5. Mier- prices from 8X00 to 11.70 a 


6774 


Members c 

3 i:c Exchange 


. _ . the price to R Hff ijj 

Wirabars, three . numHw BIS. jSX'.JSi t hree m o nttH . £X8M. • F 5 -., trade. Turnover. 4,380 tonnes. 

n JS. 12. 11A If TflA l» v £78X5, 9. 9J, Standard. Tteea msUbP £X830, 25. 20, W 


noon; Three monrtrs £31X5, 18. 17J, 17. greug coffee. 
_ Kerb: Three months £317. 17.5. 

, - - zme — Kin her. - Forward metal opened 

H74O-30.-15ZJ5 flnusr. had rose to £301 In the morning 
5765-70-1155- rings -faUnwiag cbartlai and fresh baying 

I _ foEovriPH reporn of a strike at the 

— _.D Prayon plant. ProflMaklnu caused . a 

497 JS | nlhack to' £297 in the afternoon bm news 

ash ' £5330 . 

35. Kerb: 


j^ bf preductUm cutbacks by- Asarco lifted 


l.a 'index Limited 0P3SlB«fc'' Three montii Silver 293JL-39&6 
29 Lament -Road; London, S' Wifi OHS. . < 

I. Tax-free trading on commodity futures 
- 2. The commodity futures market for, the smaller investor . 


COMPANY NOTICES 




t iirfer 


.«t. 


Manager 




irracht 

rs 

[am- 
inds 


CENTENARY FUND 1 &A- ■ 
societe ammjrow. - 

RoflHT»rT3d Ofllcm - - 
• tUXEMBOUHGl 14. TO* AWriBgCa 

Tn* Aowuii General- Meeting 


Shaiwol.Mra m Ce^jsjv^wa 


win pc h«to •: >to wbtaw oEtea at 
Linemoanrg. -I - - rtw ■ Aldriamm. an 
April lot n. 1075. si Tl o'stock ii 

lor ^t* 3W0QS* a -Mtmderinft and 
voting upon the .'OH owing MUtMHB , ■ 

T?7?b«? ana accept ,tXx. report* • oft 
. a. tn* dlractors . .■■■■■. - 

b. rire -statjtarr aajttng-. 

.meal* v par whjbi December lid, 
T977. 


4. To-Oitch.rs* 

and! tor with 'retpert to^TWtr 


^Ece o* dirties ifriW thwjbwl 


year ended ■ December. 


5 , to olctr the dlrectora »*» renwoiitn 
a tbe watt annual flwertt. muaOwi *>* 

the. got aaoual poneral kmcood . Of 
shara&oiders. " 


7 \%tF$SS%&St are 


lor tbe starotory 


** "to rwdlrtdJOd 

tZ taken Ur UK roaloHtv at »* 


w»l te Wwr 




ssrsrmffZAS » 

MS? A 


"ikvSr toj'.imiiSsi- 


feleN 



» fD,< 

idfe BiBB: . 


iajck AJcTtaNCoau-scHArr. 


Tb* Annul General Meat! no ei] 
Coaunenbanlc A.G. will _ h*fd M 
Durasaldorf on iZHj May. IS^.a. A 
other proposals before, too MaatlM 

^«arsr«“b&dss'“. ! ^. 

DMJX5D. tor every - - DM -50 


Manaoamwit wiu be .authorised I to 
Convertible -Bonds Ip an amount 
DMJ50 million nominal with 
Hon rights tor . -the 
of-.Jho Si* To 


fcr. jtmY I 


sharehoWen. 

COnvertibM 


we 


(tosh.. 


£ DIOBttlS-i 

£rmenc~.. 

Prniu'WMtj 


adu. . 
Offlciai 


H-*l 


894-5 U-9-2S] 
298-«lB|+X26 
890 


H-9.5 


£ . 
898-3 
897.J5 


89 


GOFFS B 

Tduentoy'v 

CImb 

+or 

Buiinwr 


£ per In on© 



May 

July 

(September.-. 
November... 
January 

1401-1409 
1520-1352 
1287-1996 
1270-1280 
1241-1265 
1200- ISM 

—63.0 
-4«-5 
— 4S.5 
— 56.3 
— 48. & 
— 64-8 

1420-1566 

1558-1510 

1900-1281 

12B0-12B2 



Wi . 





Soles: ]£3 

S I2J49) IMS 0> 9 

tonnes. 


ICO Indicator prices for March 31 (UJ}. 


pound tor premiums, with prwtoua id brackets: price 67.7p i+SA). Nk-kel 

OrniBrnT w*ee(-«.». X8S. 8«. 0-flB MEAT CQMMISUOH-Averw tomreck Jtortes (c*i...| 
188.53. 0.«, 0.98. 0A5»; Onrura wheal r- prlcee at representative 
tax lx nil, nil. Itfl (T3XIX nil. nU, 8.33); week to April l. GB-OWto OASP a kg. 

Rye — 7Sjn. 2. St. xai. SJ1 (77AX .3AX Xw. (+X87): UJX--Sh«E > MX3P ■ kg. Pbuioam troy o*_ 

182. SdBli B»HW-8(LSS, nth nil, ml r— ^ Kree Martet 

(same): Oats— 77.08.- ml. ofL nil (77.73. l.W. 4+1.7). Eio. l A-d and Wales— «me Qoickmlv'or (761bo 
nil. an. ini); Matos (other than hybrid tor bp W P*r «"U swage price BW p troy cL.I; 
SMdiant-Jnm. nil. DO. Xfi5 17X48, B.1X (+-2^5V. Step UP Xfl per cenu. wmue 
0.1 X O.BS; Bodcwhe a l r MB ufl: MDIct— price 14X8p ( -OX)! Pigs down M BW- rv,.i. “ 
7X82. ulL oil. all (same; Grata ssrshan— g enu average Vrtce njp t+ lTt. ^ 

S2-5B nil. nil, nil rsame). Scotland— Cattle np 7 J per cent- average -ignSZSiSum^ 

For floors: Whew or mined wheat a Od price l«-S3p l+1-J3>: Kteep np TVS Pct 

rye— 132 52 (13X871: Rye— 12X39 (120.20). cent, average price 13a2p (+1.11. Pigs 

. down xs per-cent, average .price «tip 

RTTRRFR - (+0jn. Produne»...— 

nuUUL.il ■* COVERT CARDER (sterling a package qf| B 

EASIER opening on.ttte Ixodob physical unless stated)— Imported Produce—. (jo<jonnt (PbU). 


Month 

ago 


[. ffifiso 

8950-60 


US. Markets 


, — B_0 te623 
—9.5 £636.75 


Copperraah V. B«nJ£694.B 
' (£709.25; 

i£6BA- | — imj£6lA 
1.76'— 9JZE1C627 

. _ __ Ig IBt 576^1. 2&|S1B4J75 

IMLSp LmdUasfa Jfi3 11.75'— 288 .26 


W172S' 


•— 5.^50 1J5 


V2J9- 

-2.CM 


1+2-28 . . .. ... 

,+i cents - per pound): -Colombian MUd martet. Fair Interest tlmragtmqr the day, Dnntgrs— Spaniar Navels XGMLOO. Bloods Oroundnt.-. 

Aratdcan 198. an (same): unwashed dosing quiet. Lewis- and- Peat report ajo-SAs: Cyprus-. Valencia Lutes if linaaed Crudarrj 

Arablcas 18X00 ‘ (asms); other mild that the Malaysia godown- price was 283 kilos X4(J-3J»: Jaffa; Shamoud X 75-4. 95: pwm Malavao. 

Avohmaa 1T7 n fl7QR7f Rnh.^r ec I4l M l«MV « Min nvnv AnrflX . Ud!mu 4« t aluo 7 M a Ml l HM mM H 1 


t M3D0. OSS. 88. 99, £300. 1309.5. L 
JCtolMt £300- Kerb: Three months £300. 

399-5. 38, 98a. Afternoon: Three months 
J2SS, 9X5. 98. 87.3, 96. 97. Kerb: Three 
months £37.5, 97. 87.5, 88- 
■ Cents ner pound, r On prevlon* 
mwfflclal do**- tSM per ptcol. pritcs tin o 

bnstocssi — April 

Julie 178.50-7X00. -1^0. 17GJO-7XOO: Ann. 


(1S4JMI. Dally, avoragtf WJ 3 (ftixsii, . 

ARAB l CAS supped, Drasnl Burnham 
Lambert reports- . At the dose values 
were as much as HoO lower a lth ou gh the 
spot April position remained fairly flm 
due to uncertainty over -the large open 


No. 1 jVeatentayV 
ILS-fi. | i-lnoo 

Previoo* 
elate . 

Huslnesn 

done 

May 47 JO-49 JW 

48.76-60 JO 



Egyptian: Valencia Lates 7 JO: Moroccan; 
2.70-8.00. Lemon* — Italian: 100/1708 SJ0- 


Buslneo" * SJ0: Cypna: X4XXZD; Svanut: XOMJto. 
WJ5UKm Granefnilt— Cyprus: 15 kflos X504JO: 


20 kite 3.0M.40; Jaffa: 30_klh» XefrXTX gi53»u ! !fe , .)!t: 


SILVER 


VB.KITTW »■ IV™ 

49^-49.70| 5X70-50 49 JO- 49.86 


Apples— French; Golden Delicious SS-m 
84s 2A9-2.70 . 72s 2-78-XM: 4Mb X40J.OO; . 

Granny Smblu jumble pack, per pound Grains 

XIX Golden Delicious, Jumble pack, per Barley BHC 

pound XU-0J4: Italian: Rome Beamy. Homo Fntura»„ 
per pound 0-M. Golden DeUdous 0.U-OJ4; Maize 


£117J0| 

£120^ 

S130/3E 

BBBJto 
294J5f 
£8.746 


£6,767 J}-1 KJK6JJ97.B 


6147-53 
£&92^| 
£897 ja 

8550 H 


S6d2Jy 

5708 

9390 

9573a 


(S4Z0. 

52B7.5.H 


j£79.16 


silw ™ Bd.up ■« ««e »»«*■ S?WS.-St JS3B gsas US Sli’S ,^iT l ! “SSr 7J ?S.’?S3!a *E?*'* k 

I, -4.08, Appslmtl 54.50-MJ5I 5XM-55.40I M.70-54J5 jonaOian 6JX73. Starring DeDrtOUS Aoul Ked8priny.l£93w +2 J5 £86.7 


*- ^ta? SP laveto' S 'we?K nwradea: Apm’ 12XWW4.00. naulm ’ Jlw ' 50: DBni * b: per DOUndXU; No8 HayA., 

up «« tbrewnowh 551 Jc. traded. Sales; 38 nS) tots Of J7JM kilos. «>~t-De<- S7.16-67ja 6Xlfr.68J0 67.6037^ Chilean: smith 7J0.7^»lfttor»- liuaHahllUlto^ 

1iT«]?UbW uptusmami AlM« Jan-Mar_68.BM8.65 1 ) «*&**£-] 

ismonth 5BS.BC up X5c. Thd maud opened uKAlllJ Sales: 433 (178* lots of 15 tonnes, one 7^7 iSraih ijS'ivt Future May 

i«*HNp (543HM3C1 and dosed 'at LONDON FUTURES IGAFTA)-The tot of Eve tonnes. SSS- 


pt 1ST? (ou the basis oloue-^, 
- — -^of B*r . vaiue t _OM 


- Dbl-lsa -nominal ofshare. 

□M .500 -wmlMl of -Loan Stoc^ nehD^I 

share DM -50 nomloal without Ptojjf 
i ou* wire amd other co ndJWora win 
(Wed m the time- at tosue bv the Bo 
Mi Manauement. . . • — _ , 

Board of Management and 


4 mcttShs.. 


Board wH> Xso propose — r - — 

iiaiw of Bonds 'wEfe Option Warrants tofl Bmpgths.. 
an afnooia of DM.1 OO million nnmX nal Oy. j r2raiH>tt»S- 
Commsnbaak lutonstlonal 

‘“ITwm be^proMSod' that the BoanTafJ- 
wfU (wtt» the consent of - 

— " Jo - - “ “ 


fsspivjsrwvjSEa. 
sLssk^ EttZjrtsrEEl 

cspltzl Win then he DM.244 -5 mill fan 
i* 1, also pfopsM M -*Hert ««* *84fcj 

8WV— .jt.-jh* 


"Durtmnt tbi lYraier-waiV + or 

..BiiraMOT %-ppCOA-) XUae — 


MwSmbtton'to i;"G. Warburu > 

Ltd. - The report -lu Engltoh Is & OW 


d-HMiMM 

The'Alnitod KlnadOO 


— Klnodom^slureliotocraiirim, 

Who wbl v lM | ro |i j*C [1 WWMMrif *IT 

-ro^^qa^^EWGgELiJCH^XrSSTirffiTiW) tots oyio toubea. 



ARTGALLERIES 





'gssras.tis 




V.. 


-SUSP 

Lld : ‘r ^y- 

r^' r - r t ctf' c, 

g E^' 



g5 0QJ3arSSUg"' wr 


Street. WCEMUnr, 

Mutc om b - Su 




5=5; 


Sffis. 1 niffi . &SSSZ 3®, 

modofs. 


WtUMNSiau a - RetrasMCtlve "EsIiUH- 
-tlM -of Sarfpturfc Inriudlnu ■ deriiS - jg4 
■nrilM - Of Kflfld Rufll" to jtNZO 
■ys 10-5-30. Sat.- 
10-12307 - Until 7th. . April* 
p- fVee. M7, 

MdM. w.i; 



W’”- ssr iS^-tSSi 


Carte or. m.— .- 
Floor Shows 10 J 
male pf Johnny 


\*S snd IAS and 
irtft A Friends; 


- THE -GftSAT 


BiilUaa 

Hiring 

prioiDg 


289. 05 p 
2 94.25 p 
500.46 p 
3 13.45 p 


If. <uj 'L.XI.U. if. or a; u» do tel* higher on good country tony- 49b f5a -° ’ 


+ 1 . 8 ! 

ii 


dose 


289-2511 
294.55 p 


market tmeded 50 potms higher on old 
crop badey but the first real trading was 


lug. Short covering was also seen in Urn 
afternoon. Values moved up ISO potato 
on the day -bui profit-takers trimmed 
values 30 points on the dose. May when 


SOYABEAN MEAL 


Li.ib traded up steadily to post gains of 115 
Loj& points but some light shipper selling 
trimmed vetoes 30 petals oa the ctaoe: 


USE— Turnover 221 11931 lots of lOJDg give shipper selling In- Ihe aft 
**.- Morning; TSsree • months- 1B4J. 5. forced values to done barely 
CX 4J. Serbs: Tfaree . months J9*.7, 3^25 potato higher, Adi reports. 
'Aftgrnoo'ii: Three mouths 295,5. 


■*J. X 


JJ,' MJL’ 4J. . . Kerbs; Three months 294J, WHEAT 


4£.42, 94, 4J, 4-2, iX 

COCOA 


H’nlS 


{Yeatwday’v 
rinse 


A lack Of consumer Interest and con- May 
-tinned liquidation saw prices on the »pL 
defCnilvB.. through the day, reporu GUI no*. 


add JDnffus. 


BuslnCo* 
' Di'ur 


Jon. 

Mar. 


91-25 

85.20 

87.66 

90.15. 

92.70 


+ °T 


+OJ86 
+ 0.20 
+OM 
+OJD 


Teot«d»r> 

dose 


79.15 

79.15 

6L60 

84^0 

86.65 


4-or 



Ycatarttoy a- or 
Clnae [ — 

UuitlneM 

Done 


fipertunnei .. . 
1Z2JOD-SSJO 

124.0045.60 


120.6021 S-J2X 

124.60-21-00 

Aucuk uw. 

129. GO-2041 --2.45 

124.EO-20-6O 


1 17.00- KJ-SL66 

. . 

December 

1 13.50- ISJ^LSS 

Uftffi-tUHL 

Pttwuary..— 

114.M-1S.0-1J0 

— 

April 

115JI0-17.fl~l.ffi 

— 


Trtamp& 7J0. PIbbw— ( u- w , 

S. African: Golden Ktag/Songold per 
pound Xe-d-SA Bananas— Jamaican: "°g » S R S° y ! » 

Per pound 0.15. Motons-GUtoan; White Nominal. TOnanomL 


Pacfeham’s 
Afrit 


+ 1.8 
+1.6 


XL 14.5 

183-38 
!58.6p 
b§3p 


k1S7.Bte6.162J 


+2-26f 

+3J 


+8-3 


+ 3.0 


SL86-2.0 


w 1 46-5 1 
(&268J761 
LB859JB 

\isoom 


9650 

teaoi 

9896 

9556 


.5 9423 

+ 8-3 9857-5 


+ L26X7X.15 


[£97^6' 

)£8.039 J 

£1,947 


te 1,331 
69.45 e*. 

ffSr 

872p 


+ZM £86.75 

[— 66.0i£1,81O 
— 21Jte1,744 


— 48J|£1,447 
67.45 e 

+ B-01B71 P 


4^>0, Green teriK S-Afttom. Write 3.M. /nue. * June, v AprlKTune. gAprU- 
Avocadui — Israeli: Hass 14/lte 3^8.70: May, a May. x Par tan. 

Kenya: Fuene 14ms 3. 50-4. BO: S. African: 


Poerte 4-30-4 JU. strawberries— Israeli: 

S. W: Californian: OJ0. Lottat*— Dtadc 
24s Z40- Ptaeappltt-Ivoiy Coast: M* INDICES 
SMtacb. Onions— Dmch: Large 2. BO-2.78, 
medium tSS: -Polish: 2J8: Chilean: 

MMfflt. «Mb 5-90. C ap o lcom s— K enya: 

Per pound 0.4C-IU6: Canary: 8J& 

Celofy-Spetash: 158/38S _4JM 50. 

FoUtoas— Canary: 3JW.70: Egyptian: 


+ Uffi 


SUGAR 

LOHDON daily PRICE far raw ingnr 


£102 (same) a tonne df for ApiG-Uay ship- 

f g*S white sugar daily price wan fixed Bmnet s-+Vr 29-Ib 0J0-LB0. 


3J0JJ0. CauHHmrera— French: 24s 4J8: 
Jersey: 5-08. Cntambera— Dutch: WlSs 
\M-13ST. Canary: L40-LS&. 

EngGsb Pradn co Potatoes P e r 564b. 
- ‘ L7&-2 JA , LetttKO— Per 32s 


Xd.hL'bir't- ; 

HSs^. miLWJ • I-B1.0 2055.0-1960 

duly-.— .1843.0-46.8 1—21.0 1965 J- 1830 

dept. nflBG.O-97.11 —16.0 NUJI-ISM 

Oee.„.A......1Mr.MW -17.0 IMM-MW 

Iftitt*. -1775J-B0J1 [—5.0 1WO.M7BO 


+OJS at nofi i samei. Sretito^Per pound 003. Tmwitw-Per 

. . . .The market was steady ud miter la 0J0. Carvois-Per bag O.6O-L20. 

Business done— Wheat: Nay 0L55J0J0, ■ Jhp tnorotaz. renortt C. Ctarafltow. Q„]ow--m 5G-n> tJIWJO. Swedra— Per 
sopt. 83 5m 65, Nov. 87054P.4S. Jan. Scaiierefl haring ahead of Ihe New Ynrfc Rhubarb— Per ponad. out- 

90.45-9945, March niL Sales: !« lots, opetang produced a nddn rally nl about nio. Cmtambert-Per tray 12/248 
Barter: May 70.40-78^6. St -pi. 79J0-7935. p9 Johns but In tbe overseas aumahons , Musbrownt-Per pound. 0J5- 

Nov. gi.OMi 66. Jan. 84.368195. March «> ™«teb up and prices fell by siptes-Pcr poiutd .BramJey’s 6-14- 


HLS0-S6.TB. - Sates: 25* Tots. 

IMPORTED— Wheat: CWJtS .Vfl. I. Wf 
per cent.. AprO-May £99166 seller Tilbury. 
tl.S. Dork Northern Spring No. 2. 14 per 
' rent., April £88.75, May £83J0, Juno 
ISSJa svDero, transUpmont Bast CoasL 

Beat uuvuou'd. 

. .totaraattaual Coca* Grgamcatlao (OS. Main; rc^./ French April H04.7S, May _ t 
cants per pound K-DaDy price March 31: H06.Q0 irusbtpmeni East Coast sellers. 
1S4A4 OSSJS). indicator prices Jiardi i 3: African YcUow May CTJ» goo led Rest 


ra'JUy— USB JWO.O l+41LOj177BJ 
,1880,0-1716 J 11748.8 


about 100 points. 



tiutturl 
■Prer. 1 

VekLer<layV 

Freiloua ! 

Uusinen 

Cumin. I 

C'tos* j 

t-lote . 

Done 

Cotta. ' 

1 

i 



O.ifi. Cox's Orange Pips ha O.U-ftM, 
LaxtOBS 0.084U2. Pears— Pfr pound 
ferenco 0.11-0.13. Tomatnes— Per pound 
Pnglieh DJ7J.40. 


'-Ifrday average 168.12 
averaga LB3.4D (132JO. 


1 157.04): 


WOOL FUTURES 

(Ponca per Ulo) 


Anotzullan lYeafaBd^B^* bfj 
Orvuy Wood GJOH 


thnina 

Done 


M™,.,.. KO-i-^.O i* 1.0 

juiyi...^ — iss.^u ;+ae 

Dctal%r ...... 251.0-45 J 

UfltwnJxr._ tefi J-37;0 

Much UB.D'iBJ 

May,.....—- mM2J 

July 2S8JJ8.0 

October 238.0-47. D 

SYDNEY CREASY 


J&day unanoted. grt~ „! 

Barley: Kenya Grade 0 Joatjnly SBS50 Oee._. 
tripled fob. Rett UMBOttd. Mgitb ,| 

• MARK LABE — Extremely active and May. ... 
prices accordingly were firmer. Milling Aug,, 
-wheat, delivered London— April £97.25, 

May OOLH, June £102,75. Dehatureahle 
quality wheat, drlittered East Anglia— 

April. £8U0, May 5&50. June m&0. 

Barley, debvered East Anglia — Anil 
£81.00. May 183,00/ June £M,DA 
HGCA— Ex-farm spot priced fur April 3. 


£ per tmno 

1106.1MB J& 106 JEM6.4Q| 100,00 -04 JU) 
llOB-lD.® HOJO.10.lillUfl4B.4O- 
115.50-13.60,1 t5Jffi.l3JSjl14.D0*lSL75 
[ll6J6.I8j5ti8J5.T6^I17.08.18.7B 
lffi.OB-25.1B'l23Ji-2L6ttl33JS-2UO 
l!EJ0-27.GD!lffiJ6ffiJn — 
12M0-39J0il88-lO-28JQilffiJO 


Nickel pnees 
down and up 


Entores, UJC selling agents for 
Le Nickel, announced a fall te 
the -official prices of nickel, «ffeo- 


SateBi 9SI (U621 Jotg-ol .50 JMmeA 

(same) a ton for bow trade »nd ftts .06 prices were actually higher . tha n 

taaxne) Tor export. previously. 

„„ „ Itacnutional Sugar Agf a mea t: Indies- * enn l»xzmu) cznlalned that 

'KbJ tor prices (\J£. cenM pot pound, fob and A fi P° KesmaD 


FINANCIAL TIMES 


Apr. 2 | 

lacn. 31 1 

tentb aao 

Yearafta 

235.01 [SSaflll 

230.17 

27«9 


REUTER’S 

April a i Sir. SiafiEtta ogrt Yeurocu 


1433. 4 jl434^| 1384.6 1-1755 .9 

(BaflerSeSeraberTS, 1931=100) 


DOW JONES 


■ Dow | . April - 
Jones j 3 


ns: 

31 . 


din* 361.16 364.0S355.30i42S.63 
Fulurwp47.94|3 55 -38)33^-52)409 .41 


U 

ugu 


onto 

W» 


i'rar 


CAVGTsta UBMH8=iaO> 


MOODY’S 


Moody'- 

April 

■fi^T 
21 1 

UooUipt'eflr 
axo jufto . 

tiple Cotnnuvj906.7l 

sos .a 

8£®.s]fl47Jl 


COTTON. 


ku 


230.0 


+ 1.0 


Awd whpsL- ff Suffolk .'mifl- - iw tor prices fu.fi. cenm per pounu, ran ana . ** V — ~~~ — I _ u - , COTTOil, LhrrepMh-Spot and ttdpmenf 

haritv S. Suffolk £75 £0. alb. 's re ti*« rt Rowed Caribbean. gHfl. fo* .March SI; quoted prices had been higher sale* in Liverpool amnnnta d to 223 
urw. s. wmou sraau. »,b. Mitmm DaBjf T> „ i^fly avenge 7M than those actually paid- by COO- tonne*. Fair demand was scattered 

"meat/vegetables would be applicable to both con* tag? reports ^wTriSSSaSI 


(in 


. The U.K. monetary coeffleiont for the 
~ week ' trtun April to la • expected 

“ creaffl to 1J75. , - 

t ' rt GO— Ex-farzn snot prims for the SMITH field (penco a pound? Boeft tract and new customers, 
order boyar, week jo" March 80. Djhg* mlfllM wheats Scaftiah billed w M j; Ulster Nickel rondelles are quoted at 


seffer, 'buBtasM, sah»l— ««■ Oetnets Eastern iSLaO, E. kUdamb iSSJO, H. iundmmricra 0.0 W ns, tonqmtera 37J « n mn»w»rf urith .. Iun „ . ' 

340.W40A ft July 343.1, East tfOJO. N. Wa» 'M UJC. SBtM. W 41.6. ® »nne, compareu Win PAU40IL - t-todBB. Oostafi: April 

Si Out. 33M. 3MJ, 358J- .Foed wtosat S. East £83.10. S. West Veals English fata 62J tp 724); Dutch £2,550 previously. The reduction SMMNJM. Ua Jane, July, Au«.mi». 
S»J. » hoc. 357.1, SNA 357.&-35G.*, 33: £83.40. Samern flSML S. UldtuiKb I88J0. W«h» and “ ®?A. . „ _ reflects changes in exchange 2H2' §S” 0n - 3W 0 ®' 

Mud teTlBli WmCh May W. MWlanda N. East £84-10, Umh: EngUtt) .Rnalj. 64J to - 6 Stt-N. Nor. ffi0.MW13.00. Dec. SS0J0- 

S67J. SBSJh all; July 579A 371 A 37L0- N. Wctt £83.46, Scotland £8ft90, U.K. medium 5Q.0 to. 63-4. heavy ,46.8 W 82.9; rates. 316.08. Sales: Nfl. 


NEW YORK, Aarfl 3- 
Caco*— May 162J0 aS7£S>, July 156J5 
(160.75), Sept 152J0. Dec. 147J5, March 
142.90, May 140JS. July 188-90. Sales; 626 
lots. 

Coffee— - C " Contract: May 162J0- 
110.65 O70-W). July 145J8 aflked (163.00 1. 
Sept. 133.70, Dec. 120 JO, Manta Ufl^O- 
, 117.00. May 114.50 nora.. July U4J0-USJQ. 
SepL HU.U0-117.OT. Sates: SOT lots. . 

Copper— Auril 59.TD (OT.IO). May 60J0 
(60.60), June C0 J0. July 61.30, Sept CJO. 
Dec. 61.89. Jan. MJ0. Manta 6520, May 
6620. -July 67.36, Sept. 68.30. Dec. 69J0. 
Jan. 70 JO. Sales: 3.050 tots. 

Cotton— No. 2: May 55.60-55.68 (S6-M), 
July 56.70-56.80 (57.12). Ocl 58535656. 
Dec. 5S.5l-5B.55, March 61.01-01. OA Mar 
SIM, July 62.70. Sales: 655,060 bales. 
■Gold— Not available, 
f Lard— Chicago 4oopa 25 (same). New 
York prune steam - 27£5 aSKed (27 J S3 
traded). 

matofrr-May 25+1-2543 f25ft). July 
354V-234 I257H. Sept. 3581, Dec. 233-2561. 
Manta 282MC*. May 3*7. 

SPlatfnum— April 22IMII (233^01, July 
S3AS0-3SJN (228.70). Oct. 22S^jS-SS.-JS, 
Jan. Z3SJO-333.10. April 23&S0, July 240.80- 

341.00: Sales; ????? jg— 

f Silver— April 328.Be (545-50). Stay 533£6 
(548.06). June 537. 10,’ July 541,00, Sepi. 
548.D6, Dec. &6L3D. Jan, 585.40. March 
573-80. May 383^0, 'July 500.86, Sew- 
589+0, Dec. 813.10, Jk. 618A0. Sates: 
1I-5M lots. Bandy and Harman spot 538.60 
(54L00). 

Soyabeans— May K9i asked (6883), July 
605 asked (695). Aug. 657 asked. Sept. 
6225-622. Nov. B1DJ-809. Jan. 614. Marta 
621. May 636. 

Soyabean Oil— May 25J3 asked (36.15). 
July 34.60 asked I25.OT). Ang. 33.80 asked. 
Sept- 22 A0 asked. Oct. 2L75-2LS0. Dec. 
31.50-31^5. Jan. 3L35-2L40, March Sl-OT- 
S1.40. May at.2MlJ0. 

Soyabean Meal — May 17L50.i73.00 
(173.70). July 174J0-17A50 (181.50). Aug. 
175.OT-IT3.Sa. Sepi, 17L50, Oct. J67j0. Dec- 
ia.M-U8J0, Jan. 170.00-170+0, Marti) 
173.56. 

Sugar— No. 11— May 7£i-7Jcl (Tad. July 
8-11-8.12 l8.lt). SepL 805406. Ocl. S.47- 
806. Jan- 9.06-8.01, Marta B.37. May 903- 
901. July 8.74-8.76, SepL 9.83-9-80. Ha lea; 
3018 lots. 

. Tin— 485-500 asked (5MOD7 asked). . 
-Wham-May 3MJ-312 isisji. July 3134. 
Stei <S15!>. Sept. 316. Dec. 326. Marta 
3324-033. May 3351. 

WINNIPEG, April A ttRyc— May 113.09 
bid (113.60 bid). Jnly 111.00 (lll.H). Oct. 
UO.OO asked. Nov.. JD7.50. Dec. 108.00. 

ttOais— May 8000 (SLOT). July 73.60 
asked (78.70 asked). Ocl 77-40 asked, Dec. 
73.90 bid- 

tJBartey— May 80.60 182.10), Jtfly 8040 
bid (SLOT), Ocl 79.90 asked. Dec. 79 At) 
a sked. 

5M=taxseed— May 34L00 (2«*J0 bU>. 
July 239110 (24L50), OcL 237^0 afifeed. 
Nov. SLOT bid, Dec. 225.00. 

SffWheat— SCWRS 1X3 per eem. protein 
content cif sl Lawrence not avaliaUe. 

All cents per pound er-w»refcou*» 
unless otherwise stated. **s per troy 
oosees— 100 ranee lots. T Chicago ioosa 
SB per 100 lbs— Dept- of Ag. prices pre- 
vious day. Prime Steam f,o.b. NY bulk 
tank can. i Cents per 56 lb bushel ex- 
vrarehousc. XOTO bushel Iota, {8s per 
tray ounce for 50 ounce anils of 9X9 per 
cent, parity delivered NY. I Cents per 
rroy ounce ex-warehouse. || New " B " 
contract in h a short ion for bulk iota 
of 100 short ions delivered f.ab. can 
Chteaso. Toledo, st. Louis and Alton. 
““Cenia per 89 lb bushel to store, 
rt cents per 24 D) busheL U Cents per 
48 lb bushel ex- warehouse. 55 CcdlS per 
50 ID bushel ex-warehouse, LOOT bushel 
lota 13 SC per uxtnc. 


Limit faQ 


in cocoa. 


By Our Commodities Staff 

NEARBY COCOA values on the 
London futures market fell the 
£40 permissible limit yesterday 
afternoon but staged a sub- 
stantial rally near the close. July 
cocoa, which slipped to £1.930 a 
tonne at one stage, ended the day 
£21 down at £1^947 a tonne. 

The market traded quietly in 
the morning despite reports that 
LOOO tonnes-3,000 tonnes of cocoa 
powder had been lost in a French 
factory fire. 










STOCK EXCHANGE REPORT 


Financial* Times ^Tuesday 1975- » f> v 

rf'''" 

/: 


Quiet and uncertain start to the Budget Account 

Share index 1.3 lower at 462.5— Properties down again 


Account Dealing Dates 
Option 

■First Declare- Last Account 
Dealings lions Dealings Day 
Mar. 13 Mar. 30 Mar. 31 Apr. 11 
Apr. 3 Apr. 13 Apr. 14 Apr. 23 
Apr. 17 Apr. 27 Apr. 28 May 10 

• “ New time " deaDnffl may Uke place 
from 9 JO a.m. tm business days earlier. 

Stock markets lapsed into an 
air of uncertainty as the new 
Account got underway yesterday. 
The approaching Budget served 
to keep investment interest at a 
low level, while nervousness in 
the Gilt-edged market awaiting 
to-day's Banking figures left its 
mark on sentiment generally. 
However, after reconUn g losses 
ranging to half a point at one 
stage, long-dated Gills recovered 
to close without alternation tn 
balance, but short-dated issues 
continued to reflect fears of an 
iij~<rn in interest rates and 
ended the day with losses ranging 
to 1. The Government Securities 
index eased 0.03 more to 73.S6. 

Equity markets were not helped 
hy the less optimistic tone of the 
FT Monthly Survey or Business 
Opinion and a leading broker's 
rMher rrloomy view of prospers 
for U.K. investment. Leading 
issues drifted off on lack of 
support before staging a modest 
rally in the late dealing in 
sympathy with the recovery in 
lonc-dat?d Gilts. Final quotations 
were only slightly lower on 
balance and the FT 30-shore 
index, which recorded a fall of 
3.3 at 3 p.m., ended only 1-3 down 
on the day at 462.3. 

Outside of the leaders, week- 
end Press comment and bid 
speculation provided a little 
stimulus to an otherwise rather 
drab market. Company trading 
statements also continued to help 
relieve the general tedium. 
Among the sorters, a bearish 
broker's circular prompted 
renewed weakness in Properties 
after last week's setback on 
dearer money fears. Above- 
average falls v<*re reflected in the 
FT-Actuaries index for the sub- 
section which reacted 2.4 per 
cent, to 225.87 compared with 
only a modest loss of 0.7 per cent, 
to 203.78 in the FT-Actuaries Ail- 
Share index. 

Gilts sensitive 

Weighed down by too many un- 
certainties. foremost among which 
was to-day’s banks' eligible liabi- 
lities and next week's Budget pro- 
posals, British Funds traded easier 
for most of the day. The belief 
that the authorities were support- 
ing sterling encouraged small buy- 
ing. but this imparted little by 
way of a recovery until the late 
and after-hours' business when 
medium and longer-dated securi- 
ties fairly quickly retrieved earlier 
losses extending to 1, returning to 
Friday’s list levels. A similar 
movement at the shorter end of 
the market was unsuccessful and 


most quotations here closed lower, 
usually by ,' b or 4. Scattered bear- 
covering ahead of to-day’s bank- 
ing figures was held responsible 
for the late rally which again 
demonstrated the current sensi- 
tive state of the sector. Corpora- 
tions went with the early trend in 
the main funds and sustained falls 
to }, while John Mcndes 9 per 
cent. Preference made its debut 
in recently issued Fixed Interest 
stocks at IMp, after 105p. 

Deterred by a combination of 
sterling’s performance in foreign 
exchange markets and comment 
bearish of Wall Street's pros- 
pects, buyers held off and the 
investment currency premium 
thus resumed Friday’s late 
reactionary trend. From an 
opening rate of around 102 per 
cent., the premium fell to 99 per 
cent, before steadying to close a 
net 21 points lower at 100 per cent 
Yesterday’s SE conversion factor 
was 0.6944 (0.6SSI). 

C. T. Bowring easier 

A couple of minor features 
emerged in a generally lacklustre 
Insurance sector. C. T. Bowring 
cheapened 6 to 105p in reaction 
to adverse comment, but Son 
Alliance closed that much dearer 
at 54 6 p on modest demand ahead 
of tomorrow’s annual results. 

Little of interest took place in 

Banks. Midland. 334 p. and Nat- 
West, 274p, both eased a penny 
but Bank of Scotland held steady 
at 275p In front of to-day's animal 
results. Still concerned about the 
possibility of a rise in interest 
and credit rates. Hire Purchase 
continued lower. Lloyds and Scot- 
tish gave up a penny more to 94 p 
as did Provident Financial, to SDp, 
and Wagon Finance, to 90p. 

Leading Buildings passed a 
quiet session and closed with 
little change. Selected secondary 
issues recorded reasonable gains. 
Brown and Jackson responded 
afresh to further speculative 
buying aud firmed 4 to 57p while 
in a similar business, Johnson- 
Richard Tiles and Comben added 
3 apiece to I18Jp and 32p respec- 
tively. An investment recommen- 
dation lifted Marchwiel 5 to 274p, 
while others to record modest 
gains took in Blockleys, 70p, and 
Higgs and Hill 85p. Contracting 
and Construction issues bad a 
slightly easier bias. 

Initially easier at 355p, 1GL 
closed at 358p for a gain of 2 on 
balance. Carless Capel eased 2 to 
29p. but a Press mention left 
Brent Chemicals 3 up at 203p. 

In Cinemas, Scottish TV A fell 
9 to Qlp following profits below 
the market's expectations. 


4 to the good at 152p and Grattan following publication of the formal 
a like amount dearer at . 12Sp; offer document from Simon. By 
the latter’s annual results are due way of contrast, Spiras -Sarto 
to-day. Elsewhere, Combined finished 6 off at 270p following 



III f - F.T.- ACTUARIES INDEX. 

* | [l977 | | 1978 _ 

JUL AUG SEP OCT NOV DEC JAN FEB MAR A 


Freemans please 


Freemans highlighted Stores 
with a rise of 12 to 284p in res- 
ponse to the better-than-expected 
preliminary results. Other mail- 
order concents moved higher In 
sympathy with Empire closing 


English touched 77p immediately 
after publication of the mildly 
disappointing results but picked 
up to close a penny harder on 
balance at S Op on consideration 
of the encouraging tone of the 
accompanying statement. W. H. 
Smith cheapened 2 to 157p ahead 
of to-morrow's yearly figures, 
while Marks and Spencer shed 3 
to 147p. Among Shoes, Newbold 
and Burton rose 3j to 47p follow-* 
ing an Investment recommenda- 
tion. 

Fractional losses in the Elec- 
trical leaders were illustrated by 
CEC, down a penny at 249p, after 
247p, and by 'EMI, similarly lower 
at 149p. Outside of the leaders. 
Henry Wigfall reacted sharply to 
the lapsing of the Comet Radio- 
vision offer, falling to 195p before 
dosing a net 22 lower at 200p; 
Comet moved up 2 to 117p. 
Week-end Press mention stimu- 
lated a small interest in MK 
Electric. 2 better at 164p, and 
Racal Electronics were the same 
amount higher after news of the 
proposed U.S. acquisition Else- 
where, Unitech met with specula- 
tive inquiry and rose 4 to 103p, 
while Kode continued' firmly to 
103p ex-dividend, but Lee Re- 
frigeration slipped 3 to 67p and 
BSR gave up 2 at 88p. 

Engineering leaders passed a 
quiet session and dosed mixed. 
Tn front of to-day’s preliminary 
results, GEN touched 276p before 
dosing unaltered at 274p, while 
Vickers hardened 2 to I75p and 
Tubes cheapened 3 to 364p. Else- 
where, still reflecting the recent 
good results, Ricardo and Co. 
found fresh support at 139p, up 
6, while improvements of 2 and 
3 respectively ' were seen in 
Davies and Metcalfe A. 36p, and 
Mitchell Somers, 63 p. Dealings in 
Gordon Johnson Stephens were 
resumed at 23p, compared with 
the suspension price of 18p, 


the results and proposed 100 per 
cent scrip-issue. 

Foods generally had a firm 
undertone with Robertson Foods 
prominent; the shares jumped 11 
to 14Sp following a revival of 
speculative bid hopes. The re- 
ported interested party. Rowntree 
Mackintosh, eased 5 to 3SQp 
despite a bid denial. Also on specu- 
lative interest, Wheatsheaf rose S 
more to 160p, while small buying 
helped Bishop’s Stores add 5 to 
160p, and the A 3 to 123p. Others 
firmer for choice Included George 
Bassett, 133p, and Be jam, 59xd. 
both of which held gains of 
around 3. Suggestions that 
SpiUers could sell its baking divi- 
sion prompted a small gain to 
3 Op. Cadbury Schweppes were un- 
moved following a £90 m. U.S. 
dollar loan agreement part of 
which will be used to finance the 
proposed acquisition of Peter Paul 
incorporated, the U.S. confec- 
tionery company. 

Interest in miscellaneous indus- 
trials centred upon secondary 
issues. Letraset touched 142p on 
speculative baying fuelled by a 
week-end Press suggestion that 
Reckitt and Cohn an could be a 
suitor, before easing on the 
Board's denial of any such 
development to dose 8 higher on 
balance at 133p. Channel Tunnel 
responded with a jump of 16 to 
59p to comment which suggested 
that the UJK. and France are re- 
viewing proposals for a new cross- 
channel tunnel project costing 
£500m. Others . to benefit from 
Press comment were Secnricor, 
97p, and. the “A”, 95p, which rose 
10 and. 7 respectively and 
British Syphon, a penny harder 
at 60p. Burndene Investments 

g ained 3 to 16£p in response to an 
> vestment recommendation and 
renewed speculative buying on 
bid hopes lifted Ofrex 4 to 115p. 
Further consideration of the 


record profits helped Pi nki e Heel 
add 4i to 23p but E. G Cases lost 
2 to 12p following the lower 
annual earnings. 

Leading Motor Components 
edged firmer late and Don] op 
closed 2 better at S2p, while Lucas 
Industries finished 21 higher at 
280p ex-dividend. Similar improve- 
ments were established by 
Associated Engineering, Hip, and 
Wllmot-Breeden, 63p. Distribu- 
tors were featureless apart from 
Queries Hurst which, late in the 
day, rose 4 to S6p on the increased 
profits announcement. 

Profit-taking which dipped 22 
off the value of TfUBs and Aden 
shares last week continued yes- 
terday and . prompted . a further 
reaction of 8 to 162p. 

Properties gave further ground 
in the wake of a bearish broker's 
survey and continued worries 
o ver increased interest rates. 
MEPC, 115p, and English 
Property, Slip., both closed at the 
day’s lowest with falls of 7 and 
2 respectively, while Land Securi- 
ties. 20Sp, eased 4. Great Portland 
Estates dipped 12 to 278p, while 
Hamerson A gave up 10 to 555p. 


late Friday evening, were ehahg ««t 
in Tobaccos. 

. South African Industrials res-- 
ponded to domestic market trends 
and ignored the fresh reaction 
in the investment currency pre- . 
mi cm. Unisec gained 5 to 63p 
ex-dividend, while • Primrose, 
moved up 3 to S4p and Ed works 
4 to Sup. Tiger Oats resumed 
its recent advance to (dose at 
a 1978 peak of 550p, up 15. ~ 

The Board’s strong rejection of 
McLeod RusseUSipef S-A_’s in- 
creased terms of ISOp wnfl i, - 
prompted a swift reversal In 
London Sumatra which, at 13Sp, 
gave back 12 of last Fridays gain 
of 13. 


FINANCIA L TIMES STOCK INDICES 

- - IT T |. fr *£ 

CtarajunentSBta.--- 73#6 7SJ89 74.06 74.44 74.73 73^7 

toterwt- — -.... 77.16 77.38 77.77 77.90 78.14 78.38 in 

Industrial Ordinary.— 462.B 463.8 467.7 468.1 460.1 460.5 in, 

Gobi Mines 167.4 168.7 152.9 156.4 IB7.7I 156 J 

OkLDIv. Yield.. 8.84 8.81 5.77 5.77* 8.86 Reg ^ 

■JfamiiigiYTdahaltK') 17.17 .17.07 17.04 17.05 17.32 17.29 W 

P/H H*tk> tne t)rt) 8-18 a .22 8.241 8JZ4I 8.11 8.12 * 

Dealing marked ... 4,839 6.498 5,045j. H.Ofil 4.2331 6.462 «■'* 

Equity turnover £ra_. — ' ^74y54 7R87 79.85 51,34 62.QS r 4S 
>. *lolty barga in" mw- - Ha.513] 19.252 19-9Q7| 14J 26 14.7*4 17 c 

U a.m. 4SL7. n un. 4651 noon IOL5. l p w~~ wiT — — 

2 PJDJ fiU 3 pan. 483.5. 

Latest Index bums m 

'Bunt on 31 per ton. corporation tax. tNU=8js 
. . Basts MO Govt. Secs. 15/W/3S. Fixod lac. UBS. Tod, Old. 1 / 7 / 35 . r. 
Mima 12/3/Si. SB Acdrtnr July-Dee. Iff®. g 


HIGHS AND LOWS. 



19 

m 

Sboce Compilation I 


H%h 

I «tr 

High 

Low 

Uort.y«ca._ 

78.58 

m 

73.88 

-C/*) 

187.4 

(9/1/36) 

49.18 

(3/i/7<9 

Cried fab 

8187 

(B/l> 

77.14 

'06^ 

iea.4 
08/1 W7> 

60^3 

.0/1/76) 

lad. Ord-..- 

497.5 

(S/1) 

485.4 

(2®. 

640 JS 
(14/9/77/ 

49.4 

(26/BAO) 

Gold Ulnea. 

168.6 
(8 IS) 

130.3 

(bill 

442.3 

CEA/76|I 

43.S 

kwiio/ni 


S.E. Acnvii 

i \i 


Industrie* _ 
dpecatadve-. 

Totato«. . 

Onipf Min PC - ' -T IwLGrfL... «7.5 485.4 64 B.S 49.4 i - 

yuiei mines -. .. t. ts/b J gjjJJKv hj 

South African Golds were I Gouuuwe. 168.6 i3o.3 442.3 43.B ^10 ,^ Sbjj 2 

mixed with initial Cape selling 1 ■ (8/3) fill! Gai&iTCWWdO/TU 1 ToW — 112.3 lit 

being partly met by Continental ^ ' 
and US. Interest In the after- - - • - - - ■ ^ • 

noon following the upturn in the Pancoutinental 26 to -950 and Elsewhere, Anglo-United I 
bullion price, although the latter Peko-Wallseud 5 to . 445p. opment eased 4 to S2p afte 

later reacted to close £L25 lower Among the base-metal ; pro- sharp ri§e .which followed 
at $182075 per ounce !in front ducers BH South hardened 2 of the company’s mdicatiar 

of to-morrow's International more to 74p and Min Holdings a uranium in Ireland. Nort 

Monetary Fund gold auction, penny to a 1978 high of 167p. fell 15 to 310p. 

Business In Golds, however, was • - “ — ■ 


Jems teg 
164A 193 
48.2 4<; 

110.1 12c 

J66Ji 171 

167.3 17( 

48A 41 

112.3 lit 


PancontinentaJi to -uao ana ruisewnerc, AngkHJntted I 
Peko-Wallseud 5 to . 445p. opment eased 4 to 92p afte 

Among the base-metal ; pro- sharp rise which followed 

Jfm on GAntfi finivVanail . *7 n P tha namnnni^t- i-J: 


Oils unilormly dull 

Wall Street influences aggra- 
vated dullness in Oils where the 
leaders were quoted ex their 
respective dividend deductions. 
British Petroleum lost 9 to 752p 
ex-dividend, the day’s low, while 
Shell were 7 easier at 51Sp 
ex-dividend. Investment dollar 
considerations lowered . Royal 
Dutch 1} points to £45£. Secondary 
issues failed to escape the malaise 
and Siebens (UJK.) ended 6 off at 
252 p. 

Apart from Investing-in-Suecess, 
which met with late support and 
hardened 3 to U7p, Investment 
Trusts had little to offer. Dealings 
restarted in London and Liverpool 
following details of the mooted 
cash offer of 2Ip from Aschheim 
and Zug; the shares opened and 
closed at 212p, compared with the 
suspension price of 19. 

A friendless market of late. 
Ocean Transport gave further 
ground, losing 2 to 122p, after 
I21p, in reaction to the disappoint- 
ing annual results. Furness Withy 
fell 8 to 230p in sympathy. 

Textiles failed to adopt a set 
course. Encouraged by the 
record profits, Charles Early and 
Marriott improved 2 to 35p, but 
week-end Press mention was un- 
able to move British Mohair 
Spinners, at 89p ex-dividend. 
David Dixon gained 3 to 69p and 
Tern-Consulate 2 to 25p, while 
losses of tiie latter amount 
appeared against both Scott and 
Robertson, 35p. and A. Martin, 
S2p. Courtaulds finally hardened 
the turn to 115p. 

Only Rothmans, a penny higher 
at 49£p on business completed 


only modest and the Gold Mines 
index registered a 1.3 Tall at 
157.4. Raadfoutcin attracted a 
good demand and dosed } higher 
at a 1978 high of £36£ while Free 
State GedntfL hardened i to £17: 
On the other- hand, losses of '4 
were sustained by Vaal Reefs, 
£13i and Western Holdings, £18. 

Among the medium - priced 
issues Winkelhaak gave up 20 at 
673p ex-dividend and East Drie- 
foniexn 8 to TOOp.. Kinross fell 
13 to 34Bp ex-dividend. Marginals 
were erratic with Durban Deep 
20 lower at 215p but East Band 
Props. 14 firmer at S54p. 

In South African Financials 
Union Corporation were un- 
changed at 282p ex-dividend and 
UC Investments 4 up at 230p 
following favourable Press com- 
ment on the possibility of a new 
uranium-gold mine in the Orange 
Free State. 

But otherwise prices tended to 
drift with De Beers notably weak 
at 327p ex-dhddend, a faff of 13. 

London dorm-cited financials were 
featured by Rio HntoZlnc. which 
dropped 7 to 195p on profit-taking 
and the downturn in the copper 
price. Gold Fields, however, 
picked up 3 to 186p in line with 
the improvement In the bullion 
price. Cape Interest lifted Plat- 
inums with RustenbuTg 3 higher 
at 81p and Lydenburg; with 
London buying interest .also 
evident, a similar amount better 
at 59p. 

Premium considerations - re- 
stricted rises in Australians, hut 
prices continued their, recent 
firmer tendency In line with over- 
night domestic markets. 

Uraniums moved further ahead 
helped by Press comments. EZ 
Industries rose another 10 to 175p, 


ny to a 1978 high of 167p. fell 15 to 3i0p. 

NEW HIGHS AND LOWS FOR 197* 


The following securities .quoted In the 
Stare Information Service vwwroar 
attained new Highs and Lows for 1978. 

NEW HIGHS (64) . 

AMERICANS (4) 

Barnes Groan Gillette 

Crown Zeller bach Time Inc. 

CANADIANS C5> 

Bank of Montreal RJo Alsom 

loco 

BANKS (21 * 

ANZ Com ml. me. Australia 

BUILDINGS (3) 

Brawn & Jackson . Hodwen-StuarC 
FTnlan Cl.) 

CHEMICALS (31 • 

Aim Ena Ion Plastics 

Brent Chemicals 

STORES (2) . . 

Allied Retailers Preedv r «0 

ELECTRICALS (3) ... 

Comat RMkivIslon UnKech 

Sony 

ENGINEERING <7) 

Bars ess products Jcnfcs A Cattell 

Davies & Metcalfe A Mesultt 

Locker CT.f Victor Products 

Do. A ' 

FOODS C1> 

Brooke Bond 

INDUSTRIALS (IS) 

B.H. Proo. Letraset 

Davies & Newman Seeurlcor 

Fooartv IE.) Do. A N-V 

G.R. (Hoidinos) Security Services 

Gleves Group Do. A N-V 

Hamilborne . Sothebv P. B. 

Hewitt C.) Sutcliffe Spoakatan 

Kennedy Smile 

SHIPPING (1) 

Money Dock Units 

SHOES (21 

Hiltons Newbold & Burton 

SOUTH AFRICANS (73 
Tiger Oats 

- TEXTILES 13) 

Dixon CD.) Macklnaon Scotland 

Early iCj & Marriott 

TRUSTS CB) 

Crescent Japan London & Liverpool 

Eouicv Consort ■ Scottish Continental 

Do. Defd. 5 (row oil • 

F..& C Eurntrust Throg. ffijpc Ln. 

RUBBERS (21 

Guthrie Muar River 


Randfonteln Estates 
ERGO 


MINES (4) 
itos M.I.M. 


Allen Harvey Rww^^lowis A 
_■ .BEERS ill ■ 

Gordon (L.) : . 

BUILDINGS (T) 

Breedon Urn . . 

Cartess CaBe| CKEM,c ^ (3 , ^> (T! } 

Bristol . 

FOODS (4) 

, F lsher CA.1 Low CN.) 

*^***004* Nordm a Peat 

INDUSTRI ALS M B) . 

Photxx (LoetJo 
Ex. Case* -. Sea Da Gtgpp • 

Frtedland Ooooart Stock lake 

Noryfc Sets. UMtiex . 

'’■“■A. .Watson (KK, 

INSURANCE (3). . - 

Provident A Morya (CJ >- 

Do. B 

• PAPERS (It 

Eucalyptus 

Property ran 

Allied London Englbh Prauei 1 

Centraiflncial Ests. STbi^o! 

Do. Can. Do. 12 dc Or 

Gt. Portland Ests. Stock CanvB? 
Lertd Lease . 

SHIPBUILDING (1) 

Swan Hooter 

SUPPING (21 - 

Furness Withy Ocean Tranuc 
SOUTH AFRICANS (1) .' 
Rex Trnefbnn A . - 

TEXTILES Q) - . 
Blackwood Morton Mootfort 
• - TRUSTS 141 - 

Cumulus Im. - . Fashion A Go 

Rosedlmond Inc. - NA 1 .C 
• oils tax 

Attack Petroleum KCA ■ 

OVERSEAS TRADERS CD 
Patcrsqi -Zocfiotiis ■ Paterson Zech ' 

minis on 

East Rood Cons. Rhodesian Cm 
Si iv ermines ’ - y -r r 

RISES AND FAE 
YESTERDAY 

lip Dwi . 

British Funds \ ' 


Yukon Cons. 


NEW LOWS (55) 

BRITISH FUNDS (23 

Trass. I0i; pc 1978 Tree*. 3>spc' *79-81 
CORPORATION LOANS <1> 
L-C.C- Sijpc 77-81 

FOREIGN BONDS if) 

Peru Assented 3oc 


British Funds 

Corpus. Dorn. ad 
Foreign Bends .... — 

Industrials — - 

Financial and Prop. -. 

Oils 

Plantation 

Hines — 

Recent Issues ..... ~~ 


V; : s» £ 

S-S : 

1 ! 

T: 


OPTIONS TRADED 



Mail Order 



Preliminary results 

for the 52 weeks ended 28 January 1 978 


including VAT 
£000's 

£140,611 
£137.139 


£105.283 


Profit before Tax 
£000's 

£13,060 








if 



■”( * f • _ 


* . * '+9- 

\ • . •• • 



, • 1 ♦ j ,■ x 



Vl * */ 1 * ' 

% 


.vt*, < .* 


.1974/75 

1975/76 '1976/77 

1977/78 


2k REAL PROGRESS 

Turnover up 1 8.4% to £1 66,474,000 
Profit before tax up 26.2% to £1 3,060,000 

^Proposed dividend increased by maximum permitted 

^Active agents at record 437,000 

* Good volume growth expected in 1 978 

I Copies of the Annual Report and AtxriurrtSvvrfienptjMshedw^ be, 
I I au ®*^^ft^^ < - OTri P^Sea«tary (01-7357644) 

Freemans (London SW9) Ltd. 139 Cla?*am Road London SW90HR 


A P O L L 



Edited by Denys Sutton 


The world’s leading 
magazine of 
Arts and Antiques 


Published Monthly price £2-08 Annual Subscription £25.00 (Inland) 

Oversea* subscription £29.08 USA A Canada Air Assisted 553 

Apollo Masu”». Bracken Holies. 10 Cannon 5trett, London. EC4P 4 BY Tel: 01-249 9000 


DEALING DATES 
First Last Last For 

Deal- Deal- Declare- Settle* 

logs tugs tlon meat 

Mar. 21 Apr- 10 Jim. 22 July 4 

Apr. 11 Apr. 24 July 6 July 18 
Apr. 25 May 9 July 20 Aug. 1 
For rate indications see end of 
Share Information Service 
Stocks favoured for the call 
Included SpiUers, Keyser VII- 
mann, Davenports’ Brewery, 
Assam Frontier, Yule Catto, 
William Whittlngtaam, Town and 


City Properties, Staflex Inter- 
national, French Kter, Letraset, 
Adda International, Reed Inter- 
national, Ladbroke Warrants. 
Thomson Organisation, Selin- 
court and John Brown. Puts 
were arranged in Slebans (UJK.), 
Rowntree Mackintosh, Adda 
International and Thomson 
Organisation while double 
options were transacted in 
Furness Withy and Letraset. A 
short-dated put was arranged in 
Bowater. 


ACTIVE STOCKS 


Deooraiua- 

of Closing 

Change 

1978 

1978 

BP 

£1 . 

15 752xd 

- 9 

ORi 

Olrt 

720 

GEC 

25p 

10 

240 

■ - 1 

278 

237 

RTZ 

25p 

10 

195 

- 7 ■ 

202 

164 

Shell Transport... 

25p • 

10 

518xd 

- 7 

533 

484 

ia 

£1 

0 

358 

.+ 2 

363 

32S 

Scottish TV N/V A 

lOp 

9 

61 

- 9 

72 

58 

Barclays Bank ... 

£1 

S 

336 

— ■ 

350 

296 

British Leyland... 

50p 

S 

22 

— 

27 

20 

Letraset 

lOp 

8 

133 

+ 8 

142 

98 

Menzies (J.) 9% 
Cum. Pref. 

£1 

S 

104 

— , 

105 

104 

Burmah Oil 

£1 

7 

44 

- 2 

57 

44 

BATs Defd. 

25p 

fi 

260 

— 

265 

227 

Courtaulds 

25 p 

6 

115 

+ l 

125 

109 

EMI 

50p 

6 

' 149 

- 1 

190 

I4X. 

Grand Met 

50p 

6 

103 

- 1 

109 

87 


RECENT ISSUES 


EQUITIES 


= -3 Jet 1978 

1 »ue 23 §-*55 

Pnt * < -£~ Utah Law 

Pi 

105 F 26/4 121 UB 


.120 +1 >6.76 2JI '8.6 1 8.1 


FIXED INTEREST STOCKS 


1 S73 

'i. ^l 3 Ui^fa Low 


'J£ 


Vi - 

H £1 F.H. 20.2 

— F.P. 24,2 

■■ V.V 21/2 

SI8IOO — 
£98 >2 r.r. 3(J 
*" FJf. 21/4 

« F.P. 28/4 

ClOO K.l*. 24-3 

£100 y.r. — 
— F.P. — 
m F. I*. 38:7 

««l F.P. 28A 

FJ*. 9.5 
C9«*j r.»* - 

£991, £50 38.4 

F.l*. 14/4 
- F.r. 24.2 

£98 |£25 8 'b 


92is 9U2 AmaL Inds. 10.6% 2nd. Prf- 92 v 

143 133* AubnnaieO Sei-a. pJ Cny. Uum. Fre! — 143 | 

1001 - 100p ttallej': of IVrkvbtre 10% Cum. PraJ„. lDSpUl 

|f»T 99p CoalrMrav 11% C'nm. Frer. IDBJ*L 

271 » 27 (iaOek Malay. lOg Irt. Alert. '6568 27>a + >i 

lui yOU'ininipart Hd£- IWf ISUb.. B 8 ig ...... 

ICGn lOlr, Greenail Whitley 4% IM.- lOlp „... 

103p U/miJJenki * Cattell 10% Com. Pref • 103pj 

l£ 63 oj 100 Keu'inctmi X Cholsea 11 E6S7 100 ad 

100 Dek.-n.ler Varwl ile 1932 JIOOI 4 

106 J IMp SleniriM (J.l 9% Cum. Pn | 104 ( , 

lud<il 102 Ui' 1 -.'iiwx WWi 1% lleL Prt. Ite' [IO 214 ..... 

UM 99 (f>.J IWaSt Ptj. I'm-. Ln. 99 —I- 

10 «rJ dip Tallc-! llij^L'nv. I n«. Lii. 7525 ] lOdp 

lOOin' id 1 ! lanitMili- ViHahir lftii jlOOlg ...... 

Mi;f 4ri2f U:. l.tj% Ncl f 4S» 4 


ilSi.i llfj|.|". Bii-uiwk-li Hjinn# llJtvit I ’it | 118pi 

■>>-i | ■•■(i |tVtiilvli,.iii« 16 .) 11 ^ Linn. I’rei | 1 03 iJ 

gpu | Bo lY.wL Uaici 1 1% Del.. l«Jb I 2S | 


4 ‘ RIGHTS ” OFFERS 


UilMM i 

Inue = - llenuQc. 197® 

Price 12 Lai* - Stock 

p! < S. • -a Hu* \ La '” 

36 FJP. 30/3 13/4 51 29 C. H. iDduotrlals 

30 F.P. 17/3 7/4 76 66 Hi ibnry. 

62 F.P. 29,3 10^ 85 76 Wstmousba.— 


I L'k/siitii . 

Pri«r + ■ 


Renunciation daio usually fast day for dealing tree at stomp duty, b Figures 
Based on prospectus esilmaie. 0 Assumud dividend and yield, a Forecast dividend: 
cover based 00 previous year's earotnss. r Dividend and yield based on prospectus 
ur oxbL-r olTielal usilonies for 1979 g Gross, r Visum assumed. ; Cover allows 
for conversion or shares am now rankina Mr dividend or ranking only for restricted 1 
dividends. I Placing price to public, pi Pence aniens otherwise indicated- ff issued ' 
bj lender. || Offered to holders of ordinary shares ok a ri|hls-” "RlRhtsI 
by way of capnalisailtm. tt Minimum Lender price, ft Reintroduced. U3 issued I 
in conueniou wnh reoreanlsoLlon merger or take-over. |||| Introduction. Q Issued] 
to former Preference holders. ■ AlloimcUl letters for fully -paldj. 8 Pnsrisioual 
or partly-paid allotment letters, is With warrants. j 


FT— ACTUARIES SHARE INDICES 


These indices are the joint compilation ef the Financial Times, the Institnte of Aetna 

and the FacuKy of Actuaries " ■ 




EQUITY GROUPS 

GROUPS ft SUB-SECTIONS 

lgurez in uorentbesea »how number 0 
docks psraectton 


CAPITAL GOGBSaW 

Building Materials (27) — — 

__ 290-59 
— 100.09 

Contracting, Construction (26} 

Electricals (15) ■ 

Engineering Contractors (14)__* 

KectumicolEaglneeriiigCn) 

Metals and Metal Forming 07)—. 
CONSUME* GOODS 

(DURABLE) (52} 

li. Ebctranlo, Radio TV (15) 

— 426.75 

— 2MJ3 

— 159-14 

— 3£L68 

— 105-28 
99896- 

HooseboM Goods 02). — 

— 169.05 

Motors and Duttibnbna Q9 — — 
ONiSDIlBt GOODS 
(NW-DUBANUBXU9 

— 135JO0 

_ 194.22 


223.97 

Wines and Spirits (8). 

— 25UL5 


— 243L3B 
10520 


— 10609 

Newspapers, PabKahing 03) 

Packaging and Paper 033 

Stores (38) — 

_ 336.47 
— 126.08 
— 10239 

Textiles (25) ■— 

232.91 

Toys and GmaaM) 
Ol'iUatGBOUPSdT). — 

_ 100 J3 
— 18479 

f!hwnli^l«pii) 

Pbarmaceutkal Products (7) 

— 25700 
_ 244.18 
327.74 

Shipping 00) — ....... — — 

_ 41940 

_ 191.45 

EVDUSTKL4LGBOUPf4S5) 

Oils GO : 

_ 199.36 
— 441.63 

5M SHARE INDEX 

FINANCIAL GROUPUBO) 

BankaCB) 

~ 16209 
— 18831 

Diaconnt Houses (10) 

HtreParcbiseGS)... 

— 19033 
_ I46l49 

Insurance (Lite) OB) — 

Insurance (CaqKisiM (7)— — 
Insurance Brokers (10) — — 

— 136.63 
_ 327-69 

— 33269 
_ 7602 

Property (30 

Macdlaneousf?)- ... 

— . 2250/ 
_ 30339 
30702 


9337 

Overseas Traders CUB— 

— 279.46 


Moil, Apil 3, 1178 

Pri, 

Mar- 

31 

Thors. 

Mac. 

30- 

Wed. 

Mac. 

29' 

: Man. 
as 

NO. 

ChaMgfi 

% 

Est_ Gross 
EndBB Bit. 
Yields 
(Max.) (ACT 
Com. at 34%) 
IriSV 

ElL 

Pffi 

Ratio 

(Net) 

Corn. 

Trim 

Index 

No, 

fades 

NO, 

Index 

No. 

TwU, ' 

No ■ 


185.42 USA 
22213 22189 
158.92 UK 45 
11556 11 m 


19089 • : 

31751; 

CSM ! 

2MJ3 ^ 

moje - 


aw • V, 

2HJ8 ; 

1*8* ^ . 

rno-jr. 

MU' t 

22SJ7 - 
29KH - 
3H2 9 - 
1037. • 

MOJ* 8“"- 
3S832 ? 

12557 ^ 

19285 

UM2 . : V 

r 232J9. ‘ ' 

1 MLB • 

38*28 

25752 

2«5B • > ■ 
32635: 0 

cm 1 : 
iau6 


138M 

« ■. ? ' T £s 


- -V 


FIXED INTEREST PRICE INDICES 


FIX ED in terest 
YIELDS 

Br. Govt At. Gross Red. 


I I Low 

xd atU. xd adj. 2 Coupons 

To-day 1978 . - 

tn ft utm ** 


Under 5 years — 
5-15 years — r » 
Over 15 years—. 
Irredeemahie*.- 


188.05 —9 JO — 


1 Low 5 years 

S Coupons 15yeaBL~ — 
3 2S yeaiA,.^ 

■ — — 4 Medium 5 years 

247 5 Coupons . 15 years 

287 0 25 yews 


119.48 - - - 287 » 

l-__ ,aj 7 High ' 5 JWi— 

325.75 - - 334 8 QmM JSyears-^ 

140 JQ — — L7I _9 ■ 35 yean— 

11732 -884 — . 267 10 Irre dee ma bl es 


Moa. FT*. 

Apr. »/.• 
s : 31 9, 

-~V* ;■ 

loi 1BJ4 ' 

HUT M- 77 - 

M85 '320 J 

Ml 

n.49 1344 1 

" MM • 

1ZM 120* 

wit 123*', „ 

1058 \ lOS» T 


Monday, April 3 . 


Index'] Yield \ 31 
«o. % I 


«wn l. Wed. Tam day Than. 
March Vmgx 


15 j 20- JT. Red. Deb. & Loans (15) 60.7a tl283 8086 61.01 61.01 6W?|. 61.06 j. 620 S j .®? -05 } 

16 I Investment Trust FreEs. (15 ) 68.07 12^68 SS.59 55.7S S 6 .TO 864M; S 6 XS W87 | 5&8SJ .( 

< I mu art [ 04.49 1 


| n ;Conil. and Indl. Prefs. (20) 73.75 ia.4a| 7S.96 j 74aa 74.15 1 7480 1. ww , ,4 67 ‘ 

t Redemption ytehL Higbs and lows record, base, date* and iQlwsa and 1 

issues. A new list of dw csastttHnts is available Waw •“ WrtdWws. ; v"®®* - , 

Street. Load an. EC4P4BY, prica. Up. by port 22 p- 1 •. " 










OFFSHORE AND 
OVERSEAS FUNDS 





































































42 


i' 


EXPORTERS- 


CASH FLOW 


contact- 8 . D. Kay 

INTERNATIONAL FACTORS LTD 

Circus House. New England Road, 

Brighton BN1 4GX Tel: (0Z73) 66700 

Birmingham. Carditt Loads, 

London, Manchester. 


**BRITISH FUNDS 

isw j 'I ;+ wi Ywa 

High Low I Stock | £ | - | tuL ] Bed 

' Shorts " flives up to Five Years; 

102 : ;iiI0I [Treasury IP-pc lEft _ 



1978 

High Low 


FT SHARE INFORMATION SERVICE 


AMERICAN'S— Continued r ; BUILDING INDUSTRY— Cont DRAPERY AND STORES— Cont. 


Financial Times Tuesday April 4 1979 
■ HOTELS— Continued 


Stock 

| FI nor Carp. S 5 ! 1 

lFord Motor 52 

IttATJC 


91 >. 
10 St; 
97 
97'- 
lOiilV .1 

akli 

10 V 1 

102 - 


991 

10315 

95^ 

102 % 

94% 

1 C 0< 4 

1 S 0 % 


96% 

llflta 

1G6V 

& 

2 % 
C7:: 
%ii 
111 
ff h 
Wfi? 
115-’; 
96 

86 

114V 


loots 

89S. 

375, 

3«s 

68 * 

7s% 

115V 

39-’ f 

IWj 

75% 

112 % 

^>5 

113 


110 % 
72V 
12Q : 4 
IZETj 
114% 
897- 
106V 
51 <j 
95 

1 W% 

901; 

131% 

117% 

SO 

115V 

93% 

88 V 

72V 

135% 

59% 

96V 

421; 

58% 

76% 


£5 

a 

IT 1 


94 

107V 

103% 

3 

fe 

Wt 

56% 

107 ,V 

w' 

93 il 


Esdi fipc ’i6-T8tt . _ 
Treasury n : 3K 79ft— 

TreararySpc 79ft 

Electric 4Vpc 74-79 — 
Treasury lt%pc79ti_ 
3ectnc3%pc 7B-79 — 
Treasury 9w 1980ft — 
Treasury gf^rctOft — 
Trezsuiy Sa»c 77-83 l.„ 


95% i Q 3 (treasury 3%pc 


P 

81 

105% 


.Funding Sapr TM0ft_ 
Exchequer I3pc iStoftj 
Treasury ll%pc 1981 1 
Treasury 3%pc 19788 . 
Treasury 9Spc 183 lit- 

E:xh.EVpc 1981 

Ecch. 1981 

Cvrh. 3pc 1991 

Treas. Variable fUJ}™ 

Exth-l^pc 1381ft 

Trea£8%pc-8W2ft- 
Tre2sury3pc^2ft— 
Treasury Hpc 82ft- 
Treat's ariaWcTlSJ-. 

Treasury ff <pcB £ 

Erch.9Vpc3582 

Ereh-StpclSEte 

Erch3pc'83 

[Treasury 12pc 1383ft „ 


rV 




6.49 

8.47 


9.171 

6.66| 


9.48 

9.49 
9.63 
7.19 


; CmEJecLS2% 

1 GifletteSl _ 

Honeywell SISL— 
Hutton EJF. .. .... 

LBMCorpSS 

Ingersoll-RS2__ 
laLStstems&CoaSI 
L C. Intenauonalfi 

Kaiser .4] Si 

Uarrf.RaivUS5r.50 
Morgan 1 JPl I'S2L5 
Norton SiramlEC $L| 
: 0<*Eiis-IILS3.12f>-. 
tatsLSSo. 

SS025 

Rep.N.Y.C«p.S_ 

BemordSS 

Rkbdsij.-MniL$lV 

. SauJ(R.F.)Sl 

Sbefloasi : 

i Singe 1 1 SWI 


1 Sperry Rand S0J0- 
1 Trot Inc. 51V.— — 

1 Teoneco L 

Do.mLn.Sdc.9l4L] 
a Testa PL USSUBM 

l Texaco S625 

1 Time Inc. — 

j TransamenraSl 

, _ j Utd-TedLSUS 

17% ttS.SteeISl 

1 WoalwoitbsS3% 

. _ j Xerox Carp. $1 

|385p Xonicslnc.lDc 

Zapata Carp. 25c 


24%xd 


+ or 

Ku. 


— 

Qua 

C*r 


SI 70 


-V 

$3.20 



% 

$250 

$220 


+% 

SI .50 


- 1 % 

SL90 



-14 

SO 58 


-4 

S1152 

_ 

-14 

$3.00 

25c 

— 

90c 


-V 

SI 60 



-% 

S71W 



-7 8 

57 20 

— 

-V 

76c 


-% 

H51.06 


-% 

$LQ4 


-V 

lbc 

_ 

-% 

5LOO 



-% 

80c 

_ 

-V 

90c 



+3 




-V 

h$16t 




60c 



-h 

51.12 

— 

-V 

SJ. 8 U 


-V 

$200 

— 


10 % 

— 

-m 




-% 

$2 



+v 

$130 



-V 

■ 80c 



-V 

$7 00 



-% 

SI .60 


-V 

$1.40 


-% 

$ 2.00 

— 

-V 

s'& 

— 


YTd 

GTs 

2.7 

51 

75 

33 

4 

32 
41 
3.1 
4 2 
10 


4.7 

3.8 
3.0 

34 

35 

25 

36 

2.9 

17 

2Af 
35 
4 7 
(75 

16 

2.4 
42 
42 
46 
56 

3.5 
04 
13 


|SJEL list Premium 43%% (based on 8US15743 per £}] 

Conversion factor 0.6944 (0.6881) 


Five to Fifteen Years 

95% tTreuui; Stipe'S- 
85% (Fundi ns Sjpc 
93 [Treasury 6%pc 
81% 

25 (Treasury 1 .. 

65% Transport 3pe734a_l 
68% Treasury 5pc4&89 — I 
IGTrij Treasury 13pc ttOOft—j 


67 ’4 
106 
88V 
101 % 



68V 
JOT*. 

84% Treasury 8V87 90ft — 
100% Treasury HVpe 1981 _ 
FundingoVDcWOlft. 
Treasury 12Vpc '82ft _ 
Treasury lOpc 1992 — 
ExchlPipeVS — 


JSt 


955 
6.43 
921 
7.93 
9.17 
4.73 
732 
1231 
10.00 
1191 
8.49 
1220 
,1134 
3? 77 


CANADIANS 


Over Fifteen Years 


104% (Treasury 13; 


641. 


Funding 6pcl 


114 [Treasury 14%pc 
115% 

102 % 

35 

100 % 

47*; 

865. 

107% 

81V 
1191, 

m% 

46 

109% 



as?:| 

Treasfuryl 
Treasury ” 

GasSxi . 
Exch.lOVjKl895a.__l 

flV^uyi 

■Treasury 1 

Exchequer 13*4* ' .. 

Redemption 3pc 198806_ 
(Treasury !3*pe Vilft— 
Exchequer lOJat 1997. 
(Treasury 8Aipcw7ft - 
[Tre&iUl 
htol { 

[Treasure ldtpc 
i rmrdii«32pc’SM1._| 
(Treasinyf 
(Treasury i 


105% 

65% 

llT*e 

116V 

103V 

85V 

101V 



85*/ 

59? 

j9V 
72V 

5IV 

71% [Treasury! 


Low Slock 

10i [BkHaotrealSS 

IOS Bk. Nova Scotia 51- 
^V Beil Canada 25e_ 

12 BowYalteya 

825p Brascanil 

13% CanJmp.Bk.S2__ 

955p Can2adflcS5 

35V Do.4pcDtb.D00. 

16% GaifMCanJ 

315p HawteSiiCami- 

16% HoflingerS5 

11V Hudson’s Bay U — 
24% HU£LBOilG.S2%_ 

11% imperial OQU 

945p Inca 

585p InLNaLGasSl 

61ffp Massey FfereJ 

21% Pacfflc Petit 

5^J Place Gas 51 — L — 

14ft Ravd&jDmal! 
13% 5eanamCo.CSl_ 
955p Tor. Dorn. Bk.5I__ 
lOp |Trans Can Pipe 


13% 


6 «r| Dfe 
Gras 


+,\ 

I 

-V 

! 

- 10 , 

5 


$L 0 & 

92c 
54.2 
1M — 
SLOG 
SL44 
97c, 
4%| 
$106 
40c 
$2.06 
69c 
$160 
86.4c 

86.4c 

$108 
SL46 
92c 
76c 
103c 


Cw 


rid 

GTs 

34 

33 

53 

03 
4.4 

3.7 
3.9 

112 

2.7 

4.7 
4.7 
25 
25 
3.1 

4 

52 

16 

24 
33 

25 
29 
0.0 


SLE. List Premima 43%% (based on $2.1323 per £) 


BANKS AND HIKE PUKCHASE 


Undated 


3g 

CmsdsApc 

war Loanyjctt- 
Con».3l®cftAtt. 

34% 

- JS 


1178 

1020 

956 

1 

TrrasDiy3pc6BAfi 

CoastAsS^K - - 

25%ri 

— 

its 

1155 


^INTERNATIONAL BANK 

88 | 83*2 [ape Stock 77-82 [ 83V I+V | 5.96 | 9.6l( 


^^CORPORATION LOANS 


98% 

94% 

107 

112 

97% 

93 

SJ 


.ffi 

Wi 

26% 

°3V 

99!; 

106% 


BinrfbamVipcTOOl.. 
Bristol 7%pc 784 

|&LC12>2Ik82 

Da T^clfi85 

jaaggDw9VW82 

Herts. 5Vpc 7840 



UoSHpc'8264 

Doi%pc'85g7— 

D 06 SKW 8 D 

DaZpeTOAft — 

Middx. 5% pc 1500 

Newcastle 9Vpc 7840. 
Warwick 12%% 1980 — 


[1142 
Ill43 
I 939 




l-V I H9i loia 


COMMONWEALTH & AFRICAN LOANS 


100 % 

9fV 

88V 

98% 

96% 

87% 

95 

. 70 

'96 


641, 

90% 

33V 

117 

94% 

100 


107V 

110 

114% 

85 

Si 12 

99 

99V 

101 % 

71% 

71% 

84% 

aiv 


96% **AnsL 5%pe 75-18 
93i> **Da 5*3*77-,“* 

84 **Da5%pc’Hl 

96% **NZ 4pc 1876-78 

92% **Daft*7W0 

85% **Do.7%pc’8m~ 

91 Sit Afrtca 9131 c TML 
55 Slh.Rhod.2%pc 88-70- 

85 Da6pc7Ml 


99*1 


+V 


b» 


10291 
8.17’ 
9.62 £ 
1026 
121 $ 


LOANS 

Public Board and Ind. 

|Aarit>23pcaM8— 
Akanl0%pc - 8934 
t’MetWtr.aw'B' 


99 


& 

% 

78 

95!’ 

96 

98* 2 

67 

64 

76% 

74 


1107 (UiMC.»pclfl82. 


Da without Vamnts- 
Ultramar TpcTa-TR- 


1048 , 
1270 
1127 
5.40 
1130 

17 M 



[Cred. France 

[Dawes tGBJ 

j£H7%j£90 SwKcteBnktKaJ 
83 1 60 Ira Finance..— 
(First Nstlto— 
DaWnts.7M3. 
744112% 10% [Fraser Am. IOjl. 
1049196 157 GenvrdNatnL.. 
B.68 « 37 kabta(Al_-_ 

918 255 205 [GlIlettBrofc.il _ 
10.11 29 23 Goode Dtl&yBp 

10.45 120 105 iGrindlays 
1102 220 JIBS IGumnessPeflt— 
[Hambros 
[ffiHSamnel — _ 
Da Warrants— 

Sling SS fifl 
Toynbee_ 
[Joseph (Leo) D_ 
KeyserUilrrann 
CngAShax20p, 
SemwortBX— . 

jLloydflU 

Hanson Fin. $0p. 
^otmySecsJl 

fidlandD . 
Da7%%83^3_ 
DoB)%% 

Minster Assets- 

jNaLBtAustSAl. 

S — fNaLCom.&p — 
254 teatWfestn — 

350 fScfcrodersn 

190 lSeodmbeUCD. 

, « 70 [smith SLAnb— 

H27 378 ^urfdQartD. 

. E8V jTtadeDw.SlSO. 
356 300 [Union DiscD— 


Slack 


AKZSA1 

[Alexanders H£l 
seneFUQO 

BaneyEl. 

, Allied Irish 

UrimtimotL EL- 


450 
169 

r , 157 

jBaA.4mer.SlS65^ £17% 
IttMandD-. — 
Do.lOpcConv._ 
|Bk.Lerou E_ 
BtLeumi (UKKl 

BtN4.W. .. 

[Bank Scotland D 
(tontesN.yBlO 
. El 

|Bnntu 

[Cater RyderXl — 

Cliw Dknt20p_ 

JCmu'I Ana.(SAl)_] 230 
(Catfxhkra*10$_| 07% 
£16% 

Ak 

70 

|£U7l 2 l 
68 
2V 

32 ^ 
160 
39 
205 

iS 
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812 

120 

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41 

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82 CDS Group ___ 

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ELECTRICAL AND RADIO 


l^ 1 

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90 lAB.E2ertnmie- 
lAlliwf Tnqilatfir ^ 
Audio fidelity 10p. 
42 .AntoledSealto 
99 BKXTSOp.- 
86 BSRlto— 

49 BestAMay 10p_ 
51% Bcwtborp* lOp- 
66 Brocks lop_Ll 

j59% Cii 

130 Campbell 
94 Chloride ftp. — , 
99 CoaetR.Serr.5p_; 
17 CnrZTtiTOiclOp- 
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Drca^ 

1380 Da ‘A’ 

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10^2 Dewfaorst'A’lOp 
20 Dowi&ng&U.^ 
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14% DtMierbp — - 

'141 (EMISOp 

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£96! 2 

318 fHeOrajisU^. 

106 {aecSeotalsRlpi 
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June* Stroud 

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180 


97 


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[Coates Bros 

Da'A’NV. 

Cay (Horace) 5p. 

CrtiaalnLiDp— 

Crystal^ Sp _L 
Rnalon Plastics- 

IF ma Feed 

Flams £1. . . 
Halstead O.)10p- 
Hksa Welch 50p. 
’ ‘DUBO— 


Ciwn.a i| 

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llapcrtelndLSOp— 
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55 ± 3.0 

2.9 4.41191 
5310.0 73 
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2.4 0.8 73 
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lYcrtsdens — [ 82xd|+% 


_ # - 7 

3.7 55 73 
63 43 71 
12122102 
11 * 95 

02.7 65 7.1 
17 3.0 ilflJJ 

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llfj 42 143 

18.8 

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73 2-4 24 

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2513-0 35 

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Racal HectDcs.- 
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RotaflesG.B.l(5» 
SdiolestGH) — 

Sony Ca WO 

Sound Ditt5n.5p. 

rekfusiiHiSp — 
Da'A’N/Vbp — 
Tele. Rentals — 

[336 TbcraHect 

52 TbTpfF.W.MJ# 
88 Dnttechito— . 
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86 Ward&Goid 

21 WelfroHkis. bp- 
42 Wejttaghouse._ 
14 Whitworth EL 5p, 

, Jl22 WhTestfeFVtJQp. 

276 146 |9Ti*(aDCfL)_ 


CINEMAS, THEATRES AND TV 

* 


119 

37 

65 

23 

128 

9 

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204 

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40 

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37 

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58‘ Scad. TV “A" lOp 

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52 Ulster TV* A*-. 
2? 2 ffesmniTVlOiL. 


438 
I b655 


23 8.4[ 
25 6.5 
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->2 


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75 
93 
8-0 

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60 

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DRAPERY AND STORES 



M 

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33 

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28 

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73 
75 

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3.0 8 2 4.9 
3.7 58 6.9 

3.7 6.3 6.4 
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6.7 39 55 

42 3.410.7 242 
22 56 123 
0 4 9.6 362 

3.112.4 29 
LI 92145 
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21 5.0145 

1512.4 8.4 

— L9 — 

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15 82 (95) 

43 69 5.1 
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f.O 09 2& 

— — 185 
4.3 5.6 55 
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24 75(7.0) 

3.7 4.4 .9.4 

6.7 23 6.9 
0.9 13.1 122 
26 4.8123 

inn 

29 89 58 
29 94 55 
24 6.0106 
♦ 120 « 

6 2 4.5 55 
3.0 4.6110 
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.Acrow 

, Da-A’_ 
[Ad«itiaoirp_ 
Alcan 9pcCnv._ 
ABea (E) Balfour 
.Allen WG. 

AmaL Power — 
Andst S’dyde— 

Au^Jo-Swuk 

A.'hALa«, 

Ass British l3jp. 
.\ssx- Tooling _ 

. Astra IncfLlOp 
Aurora Hlds. 

.Austin Uamesu 

Atrcrys — 
Babeock5W__ 
Bailey (C. H.l_ 
Baker P«k.50p. 
Bamfords2D 
BauroCacs. . 
BartoofcSons— 

BemfordTOp 

Berner iLeooilOpJ 

Bevan(HF.)5p_ 

Binnid Qoalcast. 

Bnrwftmi Mrrtf 

BTiauLpaBeCIOp 

BtedcWd Bodge 


BraJasm Mill iff 
I BraltliwaHeEl_ 

Brasway lOpMH 
ffhwtseDudlOp 
Bririnlri ha rmel 

British Northrop I 

Bran's Cast bpid 

Bror«Enfi.Kip_ 

BrookeTool 1 

Brotteft'dP.MpJ 
Bro«n ATau-se-i 
I Brown John £L_' 

BuIloughSOp I 

I Burgess Prod 

I Butterfield Hvy_ 

CtBfort Enk I0p_ 
Capper-NeillJOp 

Careto Snc. 

^M^RlOp- 


Christy 

CtetnoSbBaOp- 
difiomnaufii*. 

140 CobemA)30p 

Comp.ALr 

Concentric 
CockW.SW .... 
[Coopa-iFn lto_ 
Cooper bids. . 

sCnmite Group. _ 
[Crown House 

|cmmniiB78794_ 

Banks GowEiton. 

Darimlhliw.Sp- 

fcsaAMet-A'lBp 
Dayylat.-. 
DefsonLOp. 
iDeita Metal 
.DemusJ.aiOp- 
150 [DerttendSOp 
Desodier— .. _ 
DwHiebraeJOp 
Ductile Steels 




ENGINEERING 
MACHINE TOOLS 



’ll. 
























































































































































































44 


3 .< ,^'V 

a . >*i ■ • 

•s >(.»•' • 


Crane 

Fruehauf 


Britamfc Finest 
Trailers 

DmharcNcriefl^EnglaxJ 



Tuesday April 4 1978 


Butlers 


Mw i brhw n mtwfaiu^ m.- 


Domestic rate rises held 


Wfa g OLgnaiT ■> „r ■' 

m«mad Mn Aw> m ,- ***T' " 


down to 11% this year 


BY DAVID CHURCHILL 


DOMESTIC rates in England rates by an average of 3.&I per 
and Wales have risen on average cent., the lowest increase for 
by more than II per cenL this 10 years- Metropolitan district 
year, according to a survey increases are an average 9.45 per 
published yesterday of local cent, while non-Metropolitan 
authority demands. districts average 12 per cent. 

The survey, carried out by the rises. Welsh authorities are 
Rating and Valuation Associa- patting up rates by 12.12 per 
lion, is tbe first lime this year cent on average, 
that accurate figures have been 

published on the Government’s Mnrp than "7 19/ 

in nnntrnnin* rat* ricPS 1V, ° re ‘“S" ** SO 


SAMPLE OF AVERAGE DOMESTIC RATE PAYMENTS 
1978-1979 COMPARED WITH 1977-78 


Rhodesia 

talks 

plan 

rejected 


6 \\:. . -• 


THE LEX COLUMN 


hf ...£>& 


Equiuv 


; 1: 


UP - 

poin’.i! 


success in controlling rate rises 
after the substantial increases 


of 15 per cent. Street department store, for 

The association said yesterday example, faces a £22,000 rise to 
that its figures suggested that £1.079m„ while a Park Lane hotel 


per cent increase overall was £238.000. Bradford 119 

being achieved. Although some The survey shows that 10 Manchester 144 

authorities were increasing authorities have cut domestic Newcastle <48 

to a quarter otters rates this year with six making NO n-METROPOUTAN DISTRICTS 



Average 

Domestic 

R.V. 

€ 

Rate Payable 
1978-79 1977-78 

£ £ 

Increase 

% 

LONDON BOROUGHS 


- ■ 



Camden 

365 

266.09 

25932 

233 

Islington 

285 

180J19 

163.42 

1036 

Kensington & Chelsea 

533 

. 262.77 

24338 

737 

Westminster 

. 535 

283j02 

27834 

133 

Croydon 

300 

151 JO 

15139 

-030 

Harrow 

- 300 

190.50 

17836 

6.68 

Newham 

273 

180.18 

180.18 



Richmond 

279 

163.22 . 

16136 

130 

METROPOLITAN DISTRICTS 




Bradford 

119 

82j82 

78.90 

436 

Manchester 

164 

158.75 

14836 

7.07 

Newcastle 

148 

14134 

11835 

1932 


By Our Foreign Staff 


BRITAIN AND the (J.S. re- 


launched their efforts y ester- ’ England, moreover, is making 
day to convene a conference of it clear to the discount houses 
aU the parties to the Rhodesia that there should be no change 


With sterling looking stronger, 

the money markets relaxed 7 a r^ji -i -j . At --> c 

little yesterday. The Bank ;rif . leil 1.3 to 462.5 


.£S U 5» . f nt ,!, te w p *“ *"• in MLR this side of the Budget, 

and indeed it would be Jttar- 


Rhodesia’s domestic nationalist _ .. ,, . • 

organisations. • • rassing if there were to be any 

. . , , M , rise for a few weeks afterwards. 

U®ted P African ‘nESSS gS. ar S ues - in - flv ° ur °* » 


3-Montit Interbank 
. Kate 


Coonril (L^cTin JSSS 

branded the Idea as “fruitless” money^ rates. At 6t per cent 


and “impudent” while the Rev. MLR has now been stable f hr 


were in single figures— with a no change. Of the 10 authorities • 

fpw authnritip.c rerfurin? rntps. whi*t> hada mgrlo #>n4c aiaht ora CJteStCf 


Ndabaningi SI thole’s party Just about three months, .the 
said firmly that tbe so-called longest period without a change 
“Internal settlement" agree- for nearly two years. . 


The 348 local authorities in London boroughs. The two out- JIJ iiS3l iorm 14J9 

the survey— about 86 per cent, side London are Rnowsley, Mer- „ -'®* or ? _ _ , irTJT . IHrX: 

of the total number— were seyside, and Newark, Notting- ReigaU & ^h 516 " „ 

split almost equally between hamshlre. WALES 

those whose rate demands were Twelve authorities out of the Cardiff 170 100.30 90.70 17.32 

above and below tbe Govern- total of 348 reported increases c. 129 95j3 ashl • 12.13 

ment's 10 per cent, target. Fifty- of more than 21 per cent Wigan, 

three per cent, were above and for example, is increasing rates 

47 per cent, below. by 23.2 per cent and Harrogate the association says, is towards These included Southend, 

Local authorities facing elec- by 23.6 per cent. reducing the liability for empty which bad previously received 

tians next month appear to have Local authorities were equally properties with three authorities about £400,000 in rates from 

increased rates the least. The divided over whether to rate last year ceasing to rate empty empty properties. 

London boroughs are increasing empty properties. The trend, properties at alL . Editorial comment. Page 16 


ment of a month ago was “final 
and unalterable.” 

This hostile response came 


But the monetarists are iiow 
moving on to the attack, without 


as the British Government "^tiog for to-day’s batch , of 
announced that Mr. John banking statistics which will 


improve this to 49:5L 

The next question com 
Leyland's ability to meei 
latest targets, which art 
generate about half its 
funding needs over the next 
years (implying cash floi 
about £S50m.) and to a due 
return on capital of 10 per! 
before interest in 1981. At ? 
tedly this return is only 
that projected for 1981-82 ii.*- 
Ryder report, but it is V 
noticeably higher than the- V 
age figure since 196889, ai - 
seems to imply -profits of - 
over £100m. pretax *1 ft®"' 
of the period. 

Finally, it Is worth eons 
ing whether it is still a 
priatetefinance'BritishLm •? 
as though ft were a no 


firm 1 ' 


Graham, a Foreign Office include the level of . eligible V ? T™ =2 — ^ ^ 

XJnder-Secreiary, and Mr. liabilities. in March., Over the ^nwmtuw, kmci .. S .— K w * e \ a dfl 

Stephen Low, X1B. Ambassador week-end Tim Congdon -of J 

to Zambia, would be setting ont Messel called far higher short- 06 *? rindmg profits after this enormous ipjectii 

shortly, possibly bytheend of fe rm *!? J5 


Sonatrach 

requests 

14-year 

money 


British Airways may 
choose Boeing 737 


this week, on another tour of {rom Gordon Penpe^ofcrre? ?^, sec f n ^ SUf , raonths - ^ ^ wUI stiH look high by ^ ■ : 
Southern Africa. 0 • reen bulk °f Ocean’s revenues are sertor standards given tfei . 

They will be trying to clear imimnenx. ... denominated in dollars while risks involved amr-'tbe > 1 

the way for ao all-parly con- Tbe official view is that tt costs are incurred' in sterling profits record. Since tbe'-K : : 

ference, bringing together Mr. would be wrong to react to Ocean argues that the apprecia- shareholding is likely to » 

lan Smith, tbe internal money supply figures which are tion of sterling in the second to around 99 per cent - 
nationalist leaders, who nave distorted and which bear no half of 1977 was what hit the deal maybe it is= tin 

rela,i ° n *»• ' he xaderwn,; hardest start wondering whe a*l 

allianceT which controls the sluggish state of the economy. --However, it is dear : that concept of risk capita* acl 

Rhodesian gueriHas. But monetarists argue that any Ocean’s all important West means anything any nun,* 1' 

The aim- would 'be to find excessively buoyant trend African business had a particu- whether it would be chr’ 
seme way of reconciling the becomes a serious matter if it lady tough second half — port to nationalise the business 
Internal settlement agreement' persists for more th an six congestion was the problem right .. 

and tbe separate Anglo- months, as this one now has. here — while its other liner 

American settlement proposals. . operations also found the going f reemanS • . - 

This all-party meeting would Ocean Transport difficult. The group is saying _. 

form the second stage of tbe • lirtio about thp current vear . a dightiy disapj . 




By Mary Campbell 


O , This all-party meeting would Ocean Transport - difficult. The group is saying .. 

form tbe second stage of tbe ^ lirtle about the current year . esp to a^jltghtiy disap] 

negotiating process. Tbe Half-way through 1976 Ocean . . „ » ■ 55^™ tng- Christmas, FreematiL : 

BY MICHAEL DONNE, AEROSPACE CORRESPONDENT Foiign Office said yesterday Transport was forecasting pre- succeeded in maintain^.. 

that Britain and the U.S. Intend tax profits for the full year of . d redun- performance with: 

BRITISH AIRWAYS is dose to both types of new aircraft are of a substantial part ofit, and Bolls first to hold separate talks £32m. — yet in the event they wp „ 381 percent up at £166fiH- 

ghnwinn TT C Dmina >7*17 mncirfanhl, eionifliwnra cin/»o dinnlvlrto its WR-SU pnpinp in IMiUi Ihp Patriotic FrOnf on Ihe n,,f tr, h, CA1 4m Cn 1C nancy COSLS Ql>ea not KU^Ui WC»k- _ e r> . 


age u « utBu«uuu S . ----- , , _ . ... ? — .. . _ — - — ■ — ■ . . nu^u^L auaivatb were ueneuiiUK j iccuian s aucnuun Ui COS 

,eSr C “ h “SiS Pn^V a alS7 s wosZl Fbt apart J,”f British Leyland " r e 

bankers. So far this year they dedsion'mSr petiti^e” evIS^tion^oV tte a th?^e the GoreramlnL “ Tbe Maiu talks ended with downwards recently, they were There are at least three rele- per cent, higher at Jiisr| “ 

have in general lmiitod ttem- Sle up to anoS contendera for lhe smaller type Senior civil servants In the *be two sides still far apart on not expecting pre-tax profits vant financial questions to raise £13tn. This result U m 

the? hSe ?eerfnJXd ten*™ Sill EbM have to* g^to of ^et-tte Boeing TC7, Treasury and the Departments of J" t he Se ^ eD, " 1 l actual| y t0 J 2 - 1 ®- t0 £ ? 91in : ^ the deba . te about ^ pher s j d ^ of market e* 

maLr loans For 3’ tte Government for approvaL- McDonnell Douglas DC-940 and Trade and Industry are believed Jr JEtJ TJLnd m?el- Consequently, the shares slipped proposed £450m. of ner equity turns and the shares gaine-: 

ATthnnthf honfep^ mnsiriarin^ British Airways initially wants a modified version of the British to favour the Boeing purchase on i n - TTma ve ,he Pal tiotlr Front another 2 P t0 122 P* where a for British Leyland. The first yesterday to close at 284ft,- 

SonatiSSh’s reouest fo? l??ear «P to 20 aircraft of the 120-seal One-Eleven with a “ bush-kitted ’’ economic grounds. They are sup- to^^ ^e Anglo-Amertean ^eld of 10 per cent underlines concerns the state of the still But now empm ‘ 

SySy 1 ^ provided^ category, valued at up to £200m- Spey engine-tte Boeing 737 ported by Rolls-Royce which Angio-Amencan fte ^ mMkrt , g gloomy con . unpubl i slied ba ,a nC e sheet, go i ng to . be on growffi., - 

would y take the form of’ a including spares, to replace won on both economic and envi- sees an j? r nSiS 7?7 Wr - Cyrus Vance, U.S. Secre- elusion about this sector. which seems to be much worse what it describes as aoc 

specialist private loan, it would ageing Trident Ones and Twos ronmentai grounds. engines in the later Boeing 757 Ury Qf StatCj ^ Dr DavId jjler being 71 per cent than could have- been antici- £ ve Vt^itment £a 

nonetheless mark a further t,y r ® D ^f. t 18t ~- . ad djti°“ £ wanting the __ .„ . Owen, British Foreign Secre- higher in the first half, pre-tax pated. On the basis of a simple Freemans has boosted -M" 

significant stretching of maturi- It vriU need ^ Boeing 737, British Airways is Tbe top management of British lary, would attend botfa tbe pro fits were halved in the adjustment to the last balance of art jve agents bv ^F-S ~ 

ties in this market This is aircraft later, but by the mid- believed also to favour the pro- Aerospace, however, is in favoui meeting with tbe Patriotic six m£mt J s rh P reduc . S he et shareholders’ funds could ?n 1*17 000 an alSm?- 

particularly the case since the 1980s wUl also need another, posed new Boetog 757 jet for its of the airline buying the One- Front and tbe wider con- f^? jn P now bl S and tte £ - 

tn* mrinr inane tn Aipprin lareer airoraft in the 160-180 seat eventual bieeer 160-180 seat iet Eleven initially, and then a oro- fprenrp. tion in Ocean s share in Ove.- now. DO aonut wzom., ana tne go Freemans is plaumm 


Pa- onnrt in £50m. And even though they T ^vlnnH 1x01 over ^ Past two r: 

par apart had been revisillg fintisn Leyiana leaves th e pre-tax figure® ■ > 

The Malta talks ended with downwards recently, they were . There are at least three rele- per cent higher at just.- " 

the two sides still far apart on „ 0 t expecting pre-tax profits vant financial questions to raise £13in. This result ts -of 

f0r , se . t ^5 nie - I l 1 t actually to fall £2.1m. to £39. lm. In the coming debate about the higher side of market ex I . " 

?“ d Consequently, the shares slipped proposed £450m. of new equity turns and the shares gained . - 
inE’tTmfv^ihfpairi^Hp Front 2 P t0 122p. where a for British Leyland. The first yesterday to close at 284ft, T 

towards the Anglo-American of 10 per cent underlines concerns the state of the still But TOw ^ emphat' I 

proposals. the stock market’s gloomy con- unpublished balance sheet, go j ng t0 be on growth.-- . 

Mr. Cyras Vance, U.S. Secre- elusion about this sector. which seems to be much worse what n describes as aoc 

tary of State, and Dr. David After being 71 per cent than could have- been antici- gi Ve recruitment Cam *- 


norm for major loans to Algeria larger aircraft in the 160-180 seat eventual bigger 160-180 seat jet Eleven initially, and then a pro- ference. 


has recently been limited to category, both to replace Trident requirement 


posed Euro-jet aircraft which is The two Governments are 


tion in Ocean's share in Over- now. be about £325m., and the go Freemans is. pla&nipi ■ 
seas Containers Ltd. was ex- recent letter to shareholders “good” volume growthla ; 


seven years. 


Sonatrach wants the money to traffic growth. 


Three jets and to cope with Boeing has offered the U.K. a now being discussed with Euro- hoping to get the meetings off j pected to curb the contribution said that borrowings in Febru- and pre-tax profits of at; 


help finance the S3bn. trans- 
Mediterranean pipeline from the 
Algerian desert gasfield of Hassi 
R'mel tD Bologna in Northern 
Italy. According to bankers who 
are preparing financing pro- 
posals. it has asked for S350m. 
in the form of a Eurocurrency 
loan, with S7Q.5ra. of this not 
renayable for 14 years. 


co-production deal on the 757, pean manufacturers, and which tbe ground remarkably quickly. 


Tbe British Airways plans for with British Aerospace building will rival the Boeing 757. 


Giro’s new challenge to banks 


tbe ground remarkably quickly. fro ^ J tbls direction aDd there ary amounted to £640m. Yet the £i6jm. seem possible.. /:. - 

Mr. Vance said yesterday that do not seem to have been any debt:equity ratio at the end of shares may not have runt.; | 

he hoped the Patriotic Front surprises on this score with OCL 1977 was 75:25, according to the steam on a fully taxed P.. ,- 

talks could start in Dar Es probably making around £50ni. National Enterprise Board, and just under 10*. but the * r 

Salaam on about ApriJ 15, with The real surprise was the the injection of £450m. will only is a miserable 3J2 per cen 


BY JOHN LLOYD 


the~ finance for THE Pos * Office’s National Giro than the clearing banks. A borrowed, and interest will be | 
e project will take the form I s introducing three services, bonus of . I per cent, interest will at Giro base rate plus 3j per 


the nrnWt will the form ‘ s lULTMUUtiua uircc services, wuus ui j yci icm. imcirai " •»» vmw law *.»»» -2 r'— r mB , 

S d?Sirtie IlaUzn iavitm™t teniay which will allow it to com- be paid on the minimum balance cent, a year. J™? ^ S-SS? 

Sr pxnnrt preditK^ P ete 00 almost equal terms with held in the account in each six- Giro’s policy in recent months “J* .‘“f 1 * 4 ® 


Salaam on about ApriJ 15, with 
tbe major conference follow- 
ing at an unspecified venue ten 
days later. 

However, there can be no 
great optimism about an ail- 
party conference materialising. 
Yesterday’s hostile reaction 


or export credits. 


mainr tie High Street banks. month period. has tended to emphasise the Bho desla for this plan since it 

A w^ n tinLr At the same time, two Midland- Giro will introduce budget importance of the individual J**®** i?®?!?! 1 ** K5* sidenl 



t are d «nri f er- based building societies which accounts and bridging loans, customer, where previously it 
me nnaoemg. «uc uuu« . - nnn etnnl- Thi» huriu^t ari-mints as at concentrateri Jareetv fin acouir- 


Carter early last month. 

In recent weeks there havp 


I Ml IIVMUdV SUCUUIUE. tCKUliU (jqjruitum. vudivuivm, vi “““ ", . .. 

Bankers Trust International, Tmf deposit account is tbe tbe accounts are £3 a half-year, their pay transferred directly stage frame-work. But both it 
Banque Europeenne ae Credit. most i mportant 0 f the new q ^ 0 ^ interest when tbe account from their employer’s account tbe parties to the internal 
Credit Lyonnais, isimiio aan- serv - lceSi s i nce the lack of the is overdrawn at Giro base rate to their own. To encourage pay- agreement could set unacccpt- 

cario S»ao Fauio di tonno ana faC im y was f e i t t0 |j e the chief — now 6J per cent — plus 4 per credited accounts. Giro is offer- able preconditions. Even if 

Long Term credit Bank or reason f or t h e clearing banks’ cent ing a free current account to the conference were to take 

Japan. relative advantage over Giro. The bridging loans will assist customers who adopt the place, bridging tbe gulf 

It is thought that one nr two tj^ e (jj r0 deposit account will with initial deposits and with arranEement. between the Internal and 


a computer! 


Japan. 

It is thought that one or two 


place, bridging tbe guff 
between the Internal and 


nther banks are also considering p a y an interest rate of 4 per bridging finance in house-buying. THE TWO building societies — external parties would be 


£26m. tiles company offer 


Midshires — which have 200,000 
members between them, will 


Tony Hawkins adds from 
Salisbury: The Rhodesian Gov- 


stock American Express travel- eminent remained silent . on 
lere’ cheques in sterling as an the conference suggestion but 


over-the-counter service. They a spokesman thought it would 


BY NICHOLAS COLCHESTER 


will have the facility to offer be discussed , at Tuesday’s 


tbe cheques in a variety of fourth meeting of the four-man 


foreign currencies. 


executive council, comprising 


The two societies will merge) Mr. Smith and tbe three 
l October. domestic nationalist leaders. 


tendering. cent, a year. 1 per cent, more Charges will be £2.50 per £1.000 Wolverhampton & Mercia and immensely difficult. 

Bankers say negotiations on Midshires — which have 200.000 Tony Hawkins adds from 

the loan could be protracted. members between them, will Salisbury: The Rhodesian Gov- 

There is a 8250m. loan for Sona- a/%/ f j *1 pp -stock American Express travel- eminent remained silent -on 

trach currently under negotia- 4- /fim Til AC AnTlTfl51HV fill AT* lera ’ cheques in sterling as an tbe conference suggestion but 

tion (for the LNG II project). ill* 11 XV/i3 v-UIUJL/m.11J "U.v /1 over-the-counter service. They a spokesman thought it would 

Although fully underwritten this will have the facility to offer be discussed . at Tuesday’s 

is not expected to be offered gy NICHOLAS COLCHESTER the cheques in a variety of fourth meeting of the four-man 

to the market In general until foreign currencies. executive council, comprising 

later this month and will there- SHAREHOLDERS IN Johnson- share and 3Sp in cash for each The two societies will merge Mr. Smith and tbe tbree 
fore not be completed for Richards Tiles, one of the largest Job oson-Ri chords share were jn October. domestic nationalist leaders, 

several weeks. There are re- makers of ceramic tiles in worth 118p a share at last night’s — ■ ■- 

ports of at least one other major Britain, were told last night that price for Hepworth of 79p — 
loan for Sonatrach In the offing Hepworth Ceramic Holdings was which was 2p higher when the 

Any views taken by banks on prepared to make an offer worth offer was first made. 

Algeria are likely to be heavily 120p per share, or a total of Although Johnson - Richards ..«■«««*« ' 

influenced by a presentation to £26m., for their company. h t ld shareholders that U<K - TO-DAY England, Borders, Edinburgh and 

be made to banker* in all major The announcement came, un- . Board has MOSTLY dry. with some rain or . ^ unde « „ 

European cities in the latter usually, from the r company being ™® °“ e *‘ ™ . - sunny periods. Cloudy, oc«»sional drizzle. Max. 

half of this month. Those pre- bid for after a last-minute con- yet to make up ite own mind , England IFJ 45F) \ Sooner or later 

senting will include Bechtel (a saltation with Hepworth’s on the terms. One factor behind Loudon , N.W. England, Wales. Lake Dist, you will decide 

major contractor for Algeria’s advisers who, until then, had this preliminary announcement _ a i Isle of Man to switch your' 



can, 
say KIENZLE 



- Ofl 




Weather 




England, Borders, Edinburgh and 
Dundee areas 


Loudon area, 5JS. England, 

E. Anglia 

Mostly cloudy, occasional 


Isle of Man 


to switch your 


natural gas industry) and the been hoping to win Johnson- may be a group of major share- “°suy upuay, occasional Mainly dry, sunny periods. Max. accounting to a 
American energy consultants Hichards’ agreement before holders controlling some 25 per 1°C or llCfSOF to 52F>.; . com “"fekrfwi*i 


Degolyer and McNaughton asj revealing the offer. 


well as Sonatrach itself. 


The terms of one Hepworth equity. 




Midlands, Qumnel Is. 
Mainly dry. Rather cloudy. 


'jS^jiSnnn3£sr vw tv *? w , ay they ^ the sooncr? 


Continued from Page 1 

Dollar below Y220 


some bright intervals later. Max. 10C (50F). 


Mainly’ dry, sunny periods. t * ie better! 


Simple to Ins^f 
. .TheKienzle2W . 
. '■ isan office compute- 

Just move it into your Accouols t 

Uepartment and away you go. - • 


Max. 9C or 10C (48F or 50F). Aberdeen area. Central High-J cost « under 
E n NJL and Cent. Northern | an ds. Moray Firth, NJL Sc*l-| five year 


If you decide to buy a Kienzle outright, the 


BUSINESS CENTRES 


iaodT Orkney. SheUand ^Jcomr^^awcek. .. . : 

Occasional drizzle, becoming ine Kienzle ^aXXJOfnce Computer comes 
mostly dry. Max. 6C to SC <43F complete with systems covering Invoicing; Sales, 
to 46F ). Purchase and Nomina I Ledgers : Stock Control ; 


JftXL to 46F). 

Outloc 


at least one of the three key current account surplus for 


when the two leaders met In March 31) at about $l4bn_ 

March, 1977. That pledge was Peter Riddell, Econc 

“Sr iSS’Tm c °.^r d ' n i writes: Tha * 


dollar rate. 


per cent growth in fiscal 1977, ornfit-takin" tn a stronger European cu 

• That the current account to a face of quite a lot of 

would be S700m. in deficit this recovery later in day - ing. This was in line i 

fiscal year. Consequently, the dollar closed of steadying tbe rati 

As regards the first economists slightly up on the day at D-mark recent sharp decline. 


Amsterdn 

c 


45 Madrid .. 

F 

u 

35 

mostly dry in west. 




Bahrain 

S 

S 

47 

Is 

81 Melbourne 
SB Milan 

s 

c 

15 

n 

59 

55 

HOLIDAY RESORTS 



Belfast 

c 

s 

46 Montreal 

c 

—2 

28 



Vflasr 1 



Belgrade 

s 

19 

86 Moscow 

s 

3 

41 


Mid-day 


Berlin 

c 

11 

52 Binnlcb 

R 

9 

«S 



”C 

•F 

* 



BiPmnptirT 

(J 

6 

45 Newcastle 

R 

6 

43 

Ajaccio 

S 

16 


C 



Brlaujl 

u 

7 

43 New Yort 

U 

4 

38 

Aisiera 

Y 

17 

83 Lbs Palms- C 



Brussels 

V 

13 

53 Oslo 

V 

6 

43 

Blarrii* 

C 

11 


F 



Budapest 

V 

15 

33 Parts 

c 

11 

m 

Blackpool 

C 

9 


F 



B. Aires 

s 

25 

76 Perth 

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F— Fair, r— Cloudy. 

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Fs— For. 





Easy to Use 

We will soon show your staff how to tise 
your Kienzle. Two months from now it 
could be running in : your office with the. 
minimum of upheaval. 

Seeing is believing 
Visit some of our users and see for your- 
self just how a Kienzle works for thcau- 


Thcsc systems are developed to suit your company You.wflt be udder no obligation, 
and an nut programmes are demonstrated to you Just givens a call or use: - 

beforeyou place your order! the coupon.. ’• 


Kienzle Data Systems Ltd, 224 Bath Road,. 
Slough SLI -4DS Telephone: Slough 33355 
Telex: 848535 KIENZLG 






KIENZLE 


I Computers i 


MOW 30% 
FASTER! 




Branches also at 
Bir mingham , 

Bristol, Dublin, 

Manchester 

and 

Washington. 


m 




& 



m - 


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