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- L ■ K5NIX8ST 

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5 .-sasstei 



no. 27,526 Wednesday April 5 1978 



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up 5.3; 

• EQUITIES attracted brisk 
business on. bid speculation and 
a long list of trading statements. 
The FT ordinary index dosed 
5.3 up at 467.8. . 

• GILTS gave up early gains in 
response to the banking figures 
and in expectation of criticism 
of the handling of money 
supply. The Government Securi- 
ties index closed 0.02 down at 

• STERLING and . the dollar 
were firmer* and the pound rose 
sharply in late trading to 
SL8695, for a rise of 15 points. 
Its trade-weighted index rose to 
62.0 (61_8) and. the doDar’s 
depredation narrowed to 6.27 
per cent- (6.50). . 

• GOLD fell $25 to $1795 on 
nervous selling in New York. 

• TIN prices; fell below the 
International Tin Agreement 
ceiling for the first time since 
January .1977 in Penang, and on 




c.n'p^ ' 

il & 

The kidnapper? of Sig. Aldo 
Moro, the former Italian 
Premier, last night demanded 
the release of **all Communist 
prisoners” and a letter, 
apparently written by their 
eaptive, called for an exchange 
of prisoners. 

In the letter, apparently 
appealing to Italian leaders to 
secure his release, Sig, Moro 
said there was not much tiro 

But Sig. Giulio Andreotti, 

Premier, told Parliament that he 
rejected any form of blackmail 
by the Red Brigades guerillas 
who abducted Sig. Moro on March 
16 and killed his five guards. 

Meanwhile, 16 suspected neo- 
fascists, accused of a bomb attack 
on an anti-fascist rally in 1974 in 
which eight people were killed 
and 100 injured, went oa trial in 

Ecevit sees more 
hope for a 
Cyprus settlement 

Mr. Bulent Ecevit, Turkish 
Premier, indicated that -the Con- 
gressional repeal oftbeU.S. arms 
embargo on Turkey would facili- 
tate a Cyprus settlement' and. ease 
the problems ' between bis 
country sind Greece. In- Nicosia 
a formal protest was delivered to 
the U-S. Charge d’Affaires ex- 
pressing fears that such action 
would make ‘Turkey Ignore in- 
transigent’* on. Cyprus. Mean- 
while, a- Cyprus court. sentenced 
two Palestinians to hang for the 
murder of Mr. Y. Sibai. a dose 
friend at President Sadat of ..... . .. . 

EgypL.Batfeghfee the London market, staftdar.^ 

' r cish tin price closed £55 down 

Rhodesia hearing at £5,690 a tonne. 

for outside plan g WAIi street w 2^5 n P 

Angk>-U.S. emissaries, striving: to at 75&29. JustJMifore-the dose 

put together an overall peace . " . - •- • 

plan for Rhodesia, wilLTie given •ELECTRICITY supply industry 
a hearing by the country's, new reorganisation plans, .now set out 
multi-racial coalition. . Govern- in the White Paper, have .been 
raent when they arrive. 4n Salis- criticised as being too ambitions 
bury towards the end of. this by, power union leaders, who 
week. However, members of the say that the Government has 
Supreme Council emphasised thrown away its chance of ebang- 
that there could be no question the industry. Back and Page ° 

W*i to consiiler n!an fig- JffSjUE ffTSS 
ra£e * • 1 ■ -‘ port! bn of the equity of the 

Voavl uiaiinc on Marine Midland Bank of New 

Y ara wams un York. Back Page. 

parcel bombs . . ^ appeaIed to West 

Scotland Yard issued an urgent {jgnnaay’s economics minister to 
warning after two parcel bombs overturn the decision by the 
were delivered to London Supreme Court blocking its bid 
addresses. A man was hurt when f or tfc e gachs Group. The U.K. 
the first of the devices ^ exploded company reports profits for 1977 
at the Communist Party s head* of ftnjSm., down on last year's 
quarters Bz -Covert. Garden. f SSfiZjm., on turnover up at 

Roa^Ts revieW - |J^bn, (***»-). Back and Page 

Tte Government CHILE is negotiating three 

day m two . loans from international banking 

appease opponent of Jte hanrtmg /S0Jj:rces worth Back Page 

of inquiries into trunk road/ 

schemes aid to present a scal ed • DUTCH FINANCE Minister, 
down road building programme at the opening of the European 
in England for the next 10 years. Options' Exchange in Amsterdam, 
Back and Page 7;. Editorial ■ said he did .not object to risk- 
comment, Page 16 taking involved in options trad- 

• . ing, provided the participants 

Soviet pledge ... . appreciated and could bear the 

The Soviet 'TJnion has pledged **3® 4 

^MrilS^SSj*S»e to tunfSSr Pay CODC6SSiOH 

their positions in south Lebanon •* 

to UN troops, it was reported in 
Beirut U.S. military team in 

Beirut Pago 4 • • ■• EMPLOYERS of lower-paid 

Rrinflv ’ engineering Workers will be 

drib ■■ j ■ » ■ allowed to breach Government 

Mr. David Holmes, a former pay guidelines without risk of 
Liberal Party deputy ' treasurer, sanction reprisal, the Einploy- 
was list night still at Bristol ment Secretary has . said. Back 
police station after a day of Page 

interviews about an • -alleged 


— — i?«»TTr.h TRY profits will be subject to a 

ML Raymond ®arre, French new p^ce regulation scheme 

** nC which comes into force this week. 
Government to-day. Page 8 

The Duke and. Duchess of Kent * . . 

have postponed their May visit • UJv. NATIONALISED indus- 
to New Ze alan d because the tries have won more than £295m. 
Duchess may soon require worth of new export orders since 
surgery/ January. 

Mr. Rocky AoJrf, 39, the Japanese COMPANIES 
entrepreneur and former Olym- 
pic wrestler, said in London that # THOMAS JOURDAN pre-tax 
he hopes to buy the Grand profits fell to £0£m. (£607,890) 
National course at Ain tree and for the whole of 1977, in spite of 

Red Rum. a slight rise at half time. Page 31 

Carter may delay 
neutron bomb 
in disarmament bid 


President Carter appears to have decided to rule out early production of the 
neutron bomb — and may favour cancelling it altogether — to set the stage for 
a breakthrough in the strategic arms limitations talks (SALT) and a possible 
meeting next month with President Brezhnev of the Soviet Union. 

The White House refused to the assumption that Mr. Carter bility that they could meet at 
comment to<lay on reports that, would approve the weapon if they the UN disarmament conference 
against the advice of most of hds wanted to deploy iL due to be held on May 23 in 

top advisers, the President has To-day's New York Times said New York, 
decided &o scrap the weapon the President has already decided Malcolm Rutherford writes: 
which is designed to kill people to scrap the weapon principally The British Government is seek- 
wilh radiation while causing because it contradicts his often ing urgent clarification from 
relatively little damage to slated commitment to nuclear Washington. The report came 
property. disarmament. According to the as a surprise in Whitehall, which 

A snokpsman would env nnlv Paper Administration oflicials had believed that a decision to 
that ” " “ llelil!v,! that lher<! is <lnl! ' a sIbD a PP ro « lhe , aDd 

with the President-’ ’ eventual deployment of the 

, , . . , . Other reactions. Pace 2 weapon was likely to be taken 

The neutron bomb, which is at the meeting or the Nato 

opposed by the Soviet Union_taas ramameni ra^e xu .Nuclear Planning Group in Den- 

been a subject of hot debate mark later this month. 

within NATO for some months, chance that Mr. Carter may now The only qualification was that 
The UR. argued that it could not change his mind. attempts might bo made to bar- 

go ahead with production until Other reports indicated that gain deployment of the bomb in 
its European allies, in whose the decision not to go ahead with return for restrictions on the 
countries at would 4>c deployed, the bomb now may not be so final Soviet SS-20. a continental-range 
approved it. when and ir it is announced rocket capable of inflicting major 

Some of its NATO partners, later this week. Some sources damage on West European cities, 
sensitive to the political passions said that Mr. Carter is holding Mr. Callaghan, has frequently 
that it arouses, would have pre- up the bomb as u gesture to the linked the neutron bomb and the 
ferred the U.S. to come out Soviet Union and that this is part SS-20. In the Commons. Mr. 
firmly in favour of the weapon of a wider diplomatic offensive Callaghan denied a television 
first. now starting. report that the Government had 

U.S. officials recognise that Mr. Vance is due to fly to already come down in favour of 
both Chancellor Helmut Schmidt. Moscow in two weeks* time to the bomb, but was clearly 
of West Germany, and Mr. James try to make further progress in relieved not to he asked about the 
Callaghan, the Prime Mindster, the SALT talks which have been report in the New York Times, 
have beennumng at considerable becalmed for some months. “ As regards the neutron 

political risk, towards publicly The U.S. hope is that this bomb.’' he said." it is a question 
endorsing the bomb, if only as a would open the way for Presi- of weighing the very substantial 
bargaining counter in arms con- dents Brezhnev and Carter to political disadvantages ' against 
trol talks. They also concede meet in early May, but even if whatever military advantage may 
that they have been operating on it does not thpre is the possi- be presumed to exist" 


£115m. for Rolls Royce 
in Pan Am TriStar deal 


Money supply 
growth slower 
last month 


THE GROWTH of the money So far in the current year, 
supply slowed last month to sterling M3 had risen in the first 
levels more in line with the ten months to February by about 
Government’s target range of 12 per cent., equivalent to an 
9-13 per cent, for the current annual rate of some 14} per 
financial year. cent. 

The banking figures published Last month's figures are the 
yesterday provided an encourag- last to appear before the Budget 
ing pointer ahead of next week’s — the full money stock statistics 
Budget, when Mr. Denis Healey lor the period will themselves 
is expected to announce new not be published until two days 
monetary targets for the coming later. 

year on a three or six month They indicate that the growth 
roiling basis. of sterling M3 is likely to have 

After the sharp growth in been significantly lower than the 

earlier months, it will still be ™ of 22 P® r . cen j- *** 11 
very difficult for the Government eent. recorded in the preceding 
to meet its targets for the year two months, 
to mid-April. The slow-down last month 

This continues to cause con- to have reflected two main 

cern in the City, with the gilt- ?“*»»■ , the f* bse " ce ^ 
J inflows from abroad which had 

a substantial impact, particularly 
Table, Page 8 in January, and a relatively slow 

Editorial comment. Page 16 growth of bank lending to the 

— — - — domestic private sector. 

edged market yesterday reacting +v The ,. m .“ n fi^fn by 

with disappointment after the e l i S lb le liabilities of the 




20 - 
15 r 
10 r 

Gold and 

1975 1976 1977 1978 




By Peter Riddell, Economics 

THE underlying level of 
Britain’s official reserves fell 
last month for the first lime 
since May, 1977. 

The reserves total fell by 
8381m. during March to 
S20.32bn. After adjusting for 
repayments of foreign currency 
debt and some small-scale new 
borrowing by publie-secior 

appearance of ^figures which banking sector. These are their Mjthi underlying decline 

a mam deposit funds and an 
important constituent of the 


to engineers 


(Prices in pence unless otherwise 
' ( . indicated) 


■ i\ Asad. Dairies “22 + J0_ 

ijP Boots “£ J + i 

Bowater £93 + o. 

•j£ -British Home Stores 178 + » 

. >* / Combd. Eng. Stores SjJ 

A / Cullen’s A Jg + l 

if Davy lntnl + J ' 

i / Estate* Prop. Inv, *. *} + }.■ 

/ Hambro Life ?-■**-• J l 5 
- Hurst (C.) t ‘ 

- * ? -- -- -*-•" SB + 6 

ww 278 + 4 

' News IntnJ. 267. J J ' 

.- 4 A Savoy A 75 + 4 



Stock Conversion .,. 230 + 6 

Talbex 25i + 2J 

Turner and Newall ..i 391 + 6 

Unilever 510 + 8 

Vickers 179 + 4 

WGL .98 + 4 

Weir Group 120 + 6 

Wigfall (H.) 210 + 30 

Wil kinson Match ... igo + 5 

Yarrow :*.*.* 270 + 5 

Oil Exploration .. rt „ 206 + 8 

Castiefield «;.-«» MS + 6 

Guthrie 248 + 5 • 

Jokai 260 + 8 

Longbonie 280 + 8 


Grattan Warehouses 322 — T 
Waggon Finance ... 87 3 

Cons. Gold Fields 38° — ® 
De Beers Dfd. ’ 322 r 5 

PAN AMERICAN Airways, one 
of the two major U.S. inter- 
national airlines, is to buy 12 
long-range Lockheed TriStar 
airliners with Rolls-Royce RB-211 
engines, worth in all over 
£250 m. 

- -Rolls-Royce's share, including 
spars, will be about £ll5m. - 

In addition, Pan Am will take 
options -on another 14 aircraft. 
If converted into firm orders, 
these will be worth another 
£290m.. with Rolls-Royce gaining 
about £145m. of the total value. 

The deal is a major break- 
through for Rolls-Royce into one 
of the world's biggest and most 
important airlines which has 
traditionally ordered American 
airframes and engines. It also 
gives a much needed boost to 
the hitherto sluggish sales of the 
Lockheed TriStar. 

At the same time, it represents 
a major success for Sir Kenneth 
Keith, chairman of Rolls-Royce, 
who has made many visits to 
the U.S. over the last 12 months 

in an effort to win the contract 
for his company. 

The first of the RoUs-powered 
TriStars for Pan American will 
be delivered in 1980 entering 
service in April of that year. 

Rolls-Royce and Pan American 
have agreed in principle that 
finance for the deal will be 
arranged through the U.K. Ex- 
port Credit Guarantee and First 
National City Bank of New York 
using a combination of institu- 
tional and bank funds. 

Tbe deal will boost the profit- 
ability of the RB-211 engine, 
which has already yielded profits 
to the U.K. Government of over 
£34m. from the first 555 pro- 

When the Government took 
over the financing of the RB-211 
in 1971 after the collapse of the 
original Rolls-Royce company, a 
loss on tbe engine of anything 
between £20m. and £40m. was 

In fact, gross profits have 
already amounted to £54 m., 

although various price warranties 
contracted by the former Rolls- 
Royce company reduce this by 

£20 tu. 

Announcing the deal in New 
York yesterday after a Pan-Am 
Board meeting. Mr. William T. 
Sea well, the airline’s chairman, 
said Pan Am had spent 18 
months on a thorough evaluation 
of new types of equipment, com- 
prising all possible combinations 
of aircraft and engines. These 
included the General Electric 
CF6-50 series, and the Pratt- and 
Whitney JP-9D engines. 

“As a result of this, we have 
chosen the TriStar, and we have 
selected tbe RB-211 engines 
because of the technological 
superiority." be said. 

The initial order is for the 
Dash 524 B version of the RB-211 
engine, giving 48,000 lbs thrust 
at take-off. This is a more 
powerful version of the original 
RB-211 engine which is already in 
service with earlier versions of 
the Tristar. 

it had hoped would show a ™ a, “ ae P° su ™ na s an ? was S281m - 

greater improvement. important constituent of the This was In noticeable con- 

There was also uncertainly In mo l “ ey . stock * th0 “Sb they are trast to the underlying inflow 
the discount market, with some s °Mwt to t otinber of adjust- of between S230m. and $260iu. 
speculation on a possible rise in men «. including those for sea- in each of the previous three 

the official minimum lending rate S °Ty;„ i a ku i h «,«. k„ months. 

on Friday. „ e o^gible liabilities rose by While not too much shoold 

The figures coincided with a “ h nt f ‘ be read “ t0 — eXa ‘i t 

strong warning on excessive mic T Ma , t0 £4 --6bn. compared because of variations in official 
monetary growth by Mr. Gordon P * r CenL traDsaeUl>ns affecting the 

Pepper of stockbrokers W. ^ reserves- the change of direc- 

Greenwell. In a special mone- r I *S ures , published by the tion of the flows is significant 

tary bulletin, he argued that in M** li *M*i'* 0,6 change in 

further action was needed to S 8t H ? ,r .sterling lending to the market view of sterling, 
bring the situation under control r £f® ^ announcement of the 

and added: “We await the 0 dunng the month, March figures by the Treasury 

Budget.” mii U, !i, 5t « rrices seC t l?/' yesterday afternoon led to a 

He pointed out that the main change expected on | n the pound to its day's 

“sx mfSisss; syrfiaar u“5 

•SSSSob*™*) L 5SS nWttn a whl^ D'^een 

ing at a rate of 18 per cent a rerordedtojrecent period. bPen weighted index closed 02 
year over the six months to Sterling deposits by the U K « a. - „ 

February, and other measures private sector rose by £372m, haw'beSi evei e iarEer 

showed higher rates of increase, and there was a fairly sizeable Jlrrl/Iil r£?ihat 3L 
These gave “serious cause for increase after allowing " for ^t for. the fact that the books 
concern.” seasonal factors. 

Lords vote for Scots PR 


BY A majority of 91 the House tional representation, there was 
of Lords last night voted for the general recognition that the Bill 
additional member system of will be restored to its original 
proportional representation to form — with the traditional first- 
be used for the first election past-th e-post voting system — 
to the Scottish Assembly. when it is returned to the Com- 

The decision was taken against mons in June or July, 
the advice of the Government A powerful speech by Lord 
and is contrary to an earlier Ha ilsh am, in which he dis- 
vote in the Commons. counted suggestions that the 

In a free vote on the first day introduction of proportional 
of the Lords committee stage of representation for the Scottish 
the Scotland Bill, an all-party Assembly would be the thin end 
amendment supported from the of the wedge opening the way 
cross benches was carried by for its general application 
155 votes to 64. throughout the UJK.. clearly 

Although the vote was influenced a large number of 
acclaimed as a significant- victory peers, 
by the supporters of propor- Parliament, Page 10 

were dosed on the March 
figures on Tuesday evening 
last week. 

This was well before the 
Bank of England Intervened 
in an undisguised manner to 
hold the rate and signal that 
the recent sharp decline had 
gone far enongh. 

By Friday evening, lhe 
trade-weighted index had 
dropped by 31 per cent in 
Jnst over a week. 

The authorities have been 
keen to remove any market 
speculation about official eon- 

Cohtinued on Back Page 

£ in New York 

April 3 


Spot si-SMoasao si^eso-txiwo 
1 rnuntb 1 0.030.08 prem fa 03 divO.03 pm 
SmoDtJre 0.11-0.06 ilia IXOB-OXS fit*. 
12 mnnLlt* 1 0.90-0.75 <JU • 0.E6-0.70 ilia 

U.K. launch for aspirin rival 


A NEW pain-killing drug 
launched yesterday as an alter- 
native to aspirin but claimed to 
be without tbe letter’s side-effects 
could - provide Britain with 
exports of £2 00m. over the next 
decade, according to its U.S. 

: The drug, Dolobid, is to be 
produced in the U.K. for the 
world market by Merck, Sharp 
and Dobme, which ranks second 
to Hoeohst of West Germany in 
world' pharmaceutical sales. 

It is one of the first times that 
a. foreign pharmaceutical com- 
pany has chosen Britain from 
which to launch a major drug. 

Dolobid wall be manufactured 
at a"£l5m. plant now under con- 
struction at Hie Ponders End 
factory in North London of 
Merck's UK. subsidiary. Thomas 
Morson. The group’s UJL 
exports last year totalled £26.5m., 
36 per cent, of xis British 


In addition to the £15m. plant, 
another £5m. is estimated to bave 
been spent by Merck in prepar- 
ing for an International launch. 

The plant is expected to be on 
stream late this year and, 
according to Mr. Bernard Crow- 
ley, chairman of Morsoo, should 
not need any expansion for four 
to five years. 

Merck synthesised Dolobid in 
a deliberate attempt to make an 
aspirin-like substance free from 
the side-effects of aspirin in high 

Dolobid won the approval of 
the Committee on the Safety of 
Medicine late last year on the 
basis of clinical stndies which 
had shown it to be about four 
times as potent as aspirin, to 
have an analgesic action that 
lasted for eight to 12 hours, but 
it is claimed, to cause less gastric 
bleeding and other problems. 

Dolobid will cost the National 
Health Service about £4.10 for 50 

tablets of 250mg, compared with 
about 13p for 50 tablets of 
aspirin. But it is available on 
prescription only and. according 
to Dr. Lewis Sarett, Merck’s 
senior vice-president responsible 
for tbe group’s £80m. science and 
technology programme, is likely 
to remain so for several years at 

Dr. Sarett said that Merck was 
encouraged to pursue the drug 
in 1953 by a U.S. critic of corti- 
sone — then widely seen as a 
“miracle drug” — because of its 
adverse effects in treatment of 
chronic rheumatism and arthritis. 
The company experienced 
major setback wben its first 
promising discovery also proved 
to bave aspirin-like side effects. 

As a result, the quest for Dolo- 
bid had taken about 24 years. 
The first patents on the drug will 
expire in about six years’ time. 

Curing a giant headache 
Page 12 


European news 2-3 

American news 4 

Overseas news 4 

World trade news 5 

.Home news— general 6-8 

— labour 9 

Technical page Il 

Management page 12 

Arts page 15 

Leader page 16 

UX Companies 30-33 

Mining 32 

IntL Companies 34-37 

Euromarkets : 34 

Wall Street 38 

Foreign Exchanges 38 

Farming, raw materials ... 39 

UJK. stock market 40 

A new' chemistry to tom 
coal' into electricity 16 

Another bite at the HS-146 
feeder liner 39 


Switzerland: Giving more 
authority to government 3 

Venezuela: Close race to the 
presidential post 4 

Zaire: Playing on fears of 

the chaos of the past 3 


Finance and investment In 
the U.S 17-28 

AppstaUBcatt ......... 

Appoints. Advrtsns. 
BMg. Sk. Rate* ... 

Entertain raavt Cnlda 
FT-ActBarto* Indices 
Gardening ........ 












1— di n Gearing Bk. 


Hen ud Matter* ... 
Manor Market ..... 


Sale ream ..... 

Stare Information .. 
SE -fiepert 

X* To-day 1 * Events ... 2a 

tv and RMIe M 

t Unit Truss «1 


32 Win. Boulton Crp. 3 * 

1* Peters Stores ...... 34 

4 . 5 co Hi ill Hemp. ... 32 

40 BrlL Bk. Mid. Eat 33 

Canadian Pacific 

Carton Eos. 


Rusome Sim* ud 


Transport Dee. Crp. 
Wesleyan & Gan. As. 

Bam Rate* — 







For latest Share Index ’phone 01-246 8026 

London SW1 



^ Modernised throughout 
New marble entrance hall 
^ Carpeted throughout 
^ High speed lifts 

Centrally healed 



...... , ... 

■■■■-.'■. ■■ •„• f "v j£.<f 5^£^pjP( 

■ Financial Times We'&isday Aprir s 

France moves to prevent 
new Euratom treaty talks 



FRANCE to-day prevented the 
EEC from replying to a U.S. 
demand that the Community 
should agree to renegotiate the 
Euratom Nuclear Supply Treaty 
or face immediate suspension of 
further deliveries of U.S. 
enriched uranium. 

All EEC governments are pre- 
pared to comply with the demand 
except France, whose acting 
Foreign Minister. M. Louis 
de Guiringaud, insisted to 
day that the matter must he 
decided by EEC Heads of Govern- 
ment at their European Council 
meeting in Copenhagen at the 
end of this week. 

The Copenhagen summitt 
would be the last possible oppor- 
tunity for the EEC if it is to 
meet the provisions of the 
Nuclear Proliferation Act, 
recently approved by the U.S. 
Congress. This calls on the Com- 
munity to signal its willingness 
to renegotiate the supply 
arrangements toy next Sunday at 
the latest 

If no reply were given by then, 
the U.S. Nuclear Regulatory 
Commission would be required 
by law to stop issuing new export 
licences for shipments of en- 
riched uranium to the EEC, 
which has only about one 
month's supply of U.S. fuel. 

An interruption of any length 
would have a severe effect on 

the commercial nuclear Indus- 
try in the EEC which depends 
on the U.S. for virtually all its 
supplies of highly enriched 
.uranium and for almost half of 
its normally enriched uranium, 
used in power stations. Mneta 
of the remainder is supplied by 
the Soviet Union. 

Herr Helmut Schmidt the West 
German Chancellor, who is 
understood to be seriously con- 
cerned about the risk of a cut- 
off, is reported to have urged 
President Giscard d’Estaing to 
drop his opposition when the two 
leaders met in France last week- 

Herr Hans-Dietrich Genscher, 
the German Foreign Minister, is 
also expected to raise the prob- 
lem during his current visit to 
Washington. According to some 
reports he may ask for a post- 
ponement of the deadline far a 
reply, to enable the EEC to 
resolve its internal differences, 
though it is doubtful whether the 
Carter Administration has the 
constitutional power to grant a 

The U.S. is seeking more than 
30 changes in the Euratom 
Supply Treaty. The most contro- 
versial of these changes would 
tighten up the safeguards on 
nuclear proliferation risks by 
requiring that the U.S. give prior 
consent for the reprocessing by 

the EEC or the sale outside the 
Community of any enriched 
uranium of U.S. origin. 

France maintains that this de- 
mand conflicts with U.S. assur- 
ances given last year, at the start 
of the International Fuel Cycle 
Evaluation programme set up at 
the Western economic summit 
in London,' that its fuel supply 
policies would remain unaltered 
while the study was in progress. 

The Nuclear Proliferation Act, 
however, requires that the EEC 
agrees only to the principle of 
renegotiating . the Euratom 
Treaty. The actual negotiations 
need not start for another two 
years and could be extended on 
a year-by-year basis almost 

France has also objected that 
there are no legal grounds for 
the U.S. demands to change the 
treaty, which still has more than 
10 years to run. But the U.S. 
has agreed to EEC requests — 
made with French -backing — to 
renegotiate aspects of the treaty 
on three occasions in the past 20 

While no other EEC Govern- 
ment is exactly enthusiastic 
about the UJ>. demands. ' many 
officials here consider France's 
arguments to be excessively 
legalistic and not of sufficient 
importance to warrant a bruising 
political confrontation 

German engineers pay deal hitch 


BONN. April 4. 

THE WEST German engineer 
ing employers’ federation, 
Gesamtmetall. to-day brake with 
tradition and raised the possi- 
bility of renewed unrest in the 
industry, when it formally 
refused to accept as the national 
norm yesterday's hard-fought 
provisional pay deal in the 
North Wuerttemberg-North 
Baden region. 

The deal, reached early on 
Monday, would push against the 
upper Limits of the Government’s 
1978 incomes targets, but had 
been greeted with relief as a 
solution to one of the longest 
and most cosily industrial stop- 
pages in post-war West German 

In reaction to GesamtmetalFs 
announcement, Herr Eugcn 
Lodarer, president of the 
engineering workers' union, IG- 
Metall, described the employers' 
attitude as “extraordinarily 

inflammatory, political be- 
haviour” which could not fail 
to have an effect on the entire 
social climate. 

ICl-Metall, which has good 
reason to be satisfied with the 5 
per cent wage increase, plus job 
security clauses, that it won in 
North Wuerttemberg-North 
Baden, has not unnaturally 
assumed that these terms would 
now be applied to the remaining 
wage bargaining regions, where 
talks are less advanced. Using 
one region as a model for the 
country as a whole is common 
enough practice, and the area 
around Stuttgart has often 
served this purpose for the 
engineering industry in the past 

This year, however, has seen 
a distinct hardening of attitudes 
on the employers’ side. While 
the pay rise of S per cent., plus 
a DM411 lump sum, might be 
just acceptable on its own, there 
is strong resistance even within 

North Wuerttemberg-North 
Baden to the unprecedented pro- 
visions guaranteeing workers 
protection from pay losses due 
to the introduction of labour- 
saving equipment. 

The package agreed in Sutt- 
gart yesterday has not, mean- 
while, been formally accepted by 
the regional employers' organisa- 
tion, while IG-Metall will not 
start until Thursday the ballot 
of Its members on the terms, in 
which it needs only 25 per cent 
acceptance to endorse them. 
There was reported to be some 
disappointment among union 
members to-day that the pay in- 
crease was not higher. 

As a result of these delays, 
the strikfrcum-lock-out that 
directly has affected some 250,000 
workers in the region will con- 
tinue all this week. Further 
short-time working in other parts 
of the country was expected, 
above all in the motor industry. 



dollar aid 

By Our Own Correspondent 

bonn; April 4 . 

president of the Budesbanfc, 
to-day rejected .suggestions that 
the money supply target was 
being abandoned and the 
danger of inflation increased 
through Intervention to help 
stabilise the dollar. 

His comments In a news- 
paper article form part of a 
growing debate here on 
whether the country’s stability 
policy is being endangered by 
the current intervention. 

Some economic institutes 
have suggested that while the 
inflation rate may well drop 
below 3 per cent here in 
coming months, it will rise 
again in the' autumn because 
of too fast an increase in 
money supply- This point in 
turn is. being used as an argu- 
ment against any further mea- 
sures of economic reflation this 

Dr. Emminger agreed that in 
the four months Oetober- 
January, central bank money 
supply grew at an annual rate 
of about 14 per cent (com- 
pared with a growth target for 
this year of 8 per cent). But 
since then it had slowed to 
7 per cent 

He argued that a temporary 
overshooting of the target 
could be tolerated for two 
reasons. One was that there 
were no signs of a general, 
strong increase In demand — 
thus the economic conditions 
were qnlte wrong for sharp 
action to curb money supply. 
Second, the current “exces- 
sive” Deutschemark exchange 
rate was actt?c*s a brake on 


He noted CsSfrfas extent of 
cental bank intervention had 
dropped in the -past few 

Furthermore, a large part of 
the excess liquidity had been 
neutralised. The free liquid 
reserves of the banks were 
now rather lower than they 
were last autumn 

Neutron bomb: the best way to halt 



THE NEUTRON bomb is the 
most effective way yet invented 
of penetrating the armour of a 
tank — the basic objective of all 
anti-tank tactics. No armour 
plate is -sufficiently resistant 
against the. high-intensity blast 
of neutrons and gamma-rays, 
high doses of which will kill very 
quickly and will also knock out 
the tank’s electronic systems. 

The new UB. weapon being 
debated is not strictly a bomb 
at all, but a warhead for a large 
(eight-inch) shell, or . a missile 
such as the Lance. Such a war- 
head would be designed to re- 
lease much more of Its energy 
as radiation than is a “conven- 
tional " nuclear weapon. 

The basic mechanism Is that 

of the H-b omb — thermonuclear 
fusion — tout whereas a so-called 
tactical H-bomb, might release 50 
per cent of its energy as hlast 
35 per cent as heat and 5 per 
cent as “prompt”, radiation, 
corresponding- figures 'for the 
neutron warhead might be 3 # 
per cent as blast 24 per cent 
heat — but 40 per cent as prompt 

Prompt radiation, means the 
ins ta n taneous blast of neutrons 
and gamma-ray£ The. balance 
of the energy in each weapon Is 
released as fission-product radia- 
tion. - : 

It is not true, therefore, to say 
that the neutron warheads k»in 
people but leaves buildings, 
tanks, etev intact But it Is true 

to say that it is a cleaner 
weapon, in terms of the residual 
radioactivity left on the battle- 
field. . 

It is also a fact that its effec- 
tive ' radius could toe ‘ much 
smaller than for any modem 
nuclear weapon of the conven- 
tional kind. 

Exploded a few hundred feet 
up in . the air above tank form* 
turns, such , a weapon would 
probably kill almost instantly 
most crew members within, a 
radius of about. 800 feet The 
less fortunate would die in 
agony in a matter of days, from 
lrrepairatole drainage to the gut 
and bone marrow, for example. 

The lethaRty of the new 
weapon falls off very: sharply 

with distance! ' A ltii-A 
tactical weapon would pn'V 
tnflict lethal second-degree - 
on everyone within ahoi .'' 
kilometres, whereas the >‘ 
radius *’ for _ burns from -" 
kilotoa enhanced , ra, V 
weapon would he restriirV 
only about 0.5 kilometiS. "V 
The new weapon amx» '■» 
afford NATO forms pSst-At 
* highly cost-effective 

measure to a tank ann ad- 
battle that would be fou 
their own territory: -. Givi 
present estimated imbala 


Bonn ‘ favours deployment 


BONN, April 4. 

here that the West German 
Government is now prepared to 
support deployment of the 
neutron bomb in Europe if in- 
sufficient progress is made in 
East-West disarmament negotia- 
tions. The West German Foreign 
Minister, Herr Hans-Dietrlch 
Genscher, .flew to Washington 
to-day for high-level talks ex- 
pected to centre on the problem, 
and late last nig$t it was an- 
nounced in Bonn and Moscow 
that Mr. Leonid Brezhnev, -the 
Soviet President, would visit 
West Germany early next month. 

However there was also un- 
certainty here on whether the 
U.S. President, Mr. Jimmy 
Carter, would approve produc- 
tion- of the weapon, and Herr 
Genscher will be trying to clarify 
this during his talks with the Pre- 
sident and the U.S. Secretary of 
State, Mr. Cyrus Vance. 

Bonn’s readiness to accept 
deployment is bound to arouse 
the displeasure of Mr. Brezhnev, 
who wrote some months ago to 
Western leaders urging them not 
to accept deployment of the 
neutron weapon. West German 
Government sources described 
his letter to Chancellor Helmut 
Schmidt as “frank — almost 
brutal ” In tone. 

The particular toughness of the 
Soviet stance towards Bonn was 
explained here by the fact that it 
would be in West Germany that 
the neutron weapon would pri- 
marily toe deployed. 

The West German Government 
maintained that the decision on 
production of the weapon lies 
with the U.S. alone. If President 
Carter decides to go ahead, then 
the European NATO States would 
take note of that and seek to 
have the weapon used as a 
bargaining chunter in East-West 
disarmament talks. 

The U.S. has beeu seeking a 
pledge from its allies that they 
will be prepared to accept deploy- 
ment of- the weapon if the dis- 
armament talks do not have the 
desired result. It is on this point 
that Bonn now appears able to 
reassure Washington. 

The Government has not so 
far made details of ite stand 
public at least partly -because of 
strong opposition within the 
Social Democrat Party. (SPD). 
the senior partner in .the Bonn 
coalition- The party manager, 
Herr Egon Bahr, once described 
the weapon as a “perversion of 
thought” though he has recently 
toned down his remarks. . 

The Free Democrats, the junior 
partner led by Herr Genscher, 
have come closer to an official, 
public stand favouring deploy- 

NATO frustrated by 
Carter hesitation 

By David Buchan 

BRUSSELS, April 4. 
NATO officials are getting In- 
creasingly frustrated at Presi- 
dent Carter’s reluctance to 
reaeh a decision over the 
neutron bomb. NATO officials 
want the bomb deployed as 
soon as possible. 

Making a tally of the key 
conn tries on whose territory, 
or with whose forces, the 
bomb would be deployed, 
NATO officials believe that 
Prime Minister James Callag- 
han has gone about as far as 
the Left wing of Us Labour- 
Party will let him go in hint- 
ing that the neutron bomb 
should be added to the NATO 

meat But here too there are 
internal divisions. The FDP 
security affairs spokesman, Herr 
Juergen MoeHemann, bluntly 
said to-day that Herr Genscher 
would be saying “yes,” to 
weapon in Washington, . 
claimed a big majority of tnS 
Bundestag supported this. His 
view was promptly contested by 
some party colleagues. 

David Setter adds from 
Moscow; For the Russians, Mr. 
Brezhnev’s Bonn visit will be an 
opportunity to give fresh impetus 
to East-West detente but only 

if the question of neutron bomb 
has been effectively laid to rest. 

Soviet-German relations have 
been' good since the 1970 Moscow 
Treaty which normalised 
relations and the quadripartite 
agreement on Berlin in 197L 
-West Germany is the Soviet 
Union’s largest Western trading 
partner and has had considerable 
success in gaining Soviet agree- 
ment to the emigration of ethnic 
Germans, and does not have a 
pointed confrontation with the 
Soviet Union over human rights. 

At the same time. West Ger- 
many, as the principal potential 
deployment area for the neutron 
bomb, is an inevitable focus of 
Soviet concern over the weapon. 

A recent Tass commentary 
reminded West Germans that the 
neutron bomb is hardly an 
“advantage" for the Federal 
Republic because “if a conflict 
is provoked, it will be West Ger- 
many itself, being the nuclear 
arsenal of the United States, 
that would first of all be turned 
into atomic desert” 

As a matter of established 
practice, Mr. Brezhnev prefers to 
have summit meetings end in the 
signing of documents. There are 
three pending Soviet-German 
agreements on scientific and 
technical ■, co-operation, legal 
assists”-. f<5 and cultural co-opera- 
tion<q^tich ■ have been held up 
because/ jsaeh is covered by a 
Federal German agency located 
in West Berlin. 

If sonic way of surmounting 
the Weft Berlin problem can be 
foumLMr. Brezhnev's visit could 
end with the signing of these 
agreements, or with a joint state- 
ment of principles on detente 
'uilar to lhat signed last June 
ing his visit to Paris. 
fT. Brezhnev will- probably be 
mpanied by higb-ranJdng'- 
Ministers and the visit conld. 
also, be the occasion for an- 
nouncing new large-scale joint 

A great deal will depend, 
however, on whether the West 
Germans - have agreed to the 
deployment of neutron weapons 
on their soiL 


ready to 




By Leslie Colrtt 


East Germany says Moi 
now prepared to uegbtia 
the U.S. over the highly . 
versial neutron bomb.. 
sador Piotr Abrasshnov, . 
ber of the Soviet Centri 
mittee and one oF Moscov 
ing diplomats, says the ! - 
tlons should be bi 
between Washington an 

Until now. the Soviet 
sharply condemned the ; 
bomb, and have hot sugg 

is negotiable' with other 
systems as Mr. Ahr- 
stated here to-day. The 
Ambassador told foreigj 
men in West Berlin tl 
“negotiations can take 
between those who h - ' 
they have such a bomb az 
who could produce it qu 

Moscow’s envoy noted t :~ 
one assumes realism ai 
monsense will prevail s . 
U.S. then X firmly belie? . 
not affect relations betw 
countries.” Mr. Ahrassft . . 
Mr. Leonid Brezhnev, th 
Communist - Parly Chair i 
likely to raise the . 
bomb issue with Heir ' _ 
Schmidt, West Genual' 
cellor, during Soviet -• 
planned visit to Boon ea ’ ' 

The Soviet Ambassad * 
negotiated the 1971 ftfi 
agreement on Berlin wi- 
Western powers, said _ 
Ueves the “positive res 
the Berlin accord outwel 
be calls the “violations; . 
cow has repeatedly t ; 
against alleged- ' West^ 
violations of the 'Berlli 
menL - -• -. ' 

Asked about a Sovfetf - 
vehicle which -y 

attempted to join a coi- - 

lowing West Germany's' 
President Herr Walter- 
the Soviet Ambassador- 
that the Russian army'f- 
happened to be in . thi 

Holland opens options exchange 


AMSTERDAM, April 4. 

Daily at 12.00 [747] &at 16.45. 

Call your travel agent and ask about TWA’s 
new Budget and Standby fares. (These fares are 
subject to a seasonal increase from July 1st) 

TWA carries more scheduled passengers aurora the Atlantic than any other Biriina. 

No.l across the Atlantic. 

THE MOST ambitious venture 
in traded options dealing outside 
the UB. was opened in Amster- 
dam to-day. Dealers engaged in 
mock deals following the open- 
ing of the European Options Ex- 
change (EOE) by Mr. Frans 
Andriessen, the Dutch Minister 
of Finance, ahead of the Btart 
of trading in earnest to-morrow. 

The EOE just managed to 
reach its opening target of 
April 4 even if trading did not 
start on opening day. 

The EOE has been closely 
modelled on the five-year-old 
Chicago Board of Options Ex- 
change which has already 
spawned four other traded 
options markets in the U.S. as 
well as in Toronto, Montreal, 
Sydney and Singapore. 

But Amsterdam is unique in 
deliberately setting out to create 
an international market in both 
stocks in which options are 
traded and in its* membership. 

It has bad to. trim Its early. 


April, 1973 

This advertisement Appears 
as a matter of record only. 

optimistic plans to trade between 
10-15 options from half a dozen 
countries and is starting with 
nine stocks— three each from the 
U.K., the U.S. and Holland. 

-It has. also decided to limit 
hours of trading in the first few 
days of operation until levels of 
activity have had time to build 
up. It said to-day, however, that 
trading in the first three days 
will last 4 i hours, from 10.30 ajn. 
until 3 p.m. instead of the two- 
hour sessions announced yester- 
day. This is still shorter than 
tbe six-hour trading day planned 
when it is in full swing. 

Amsterdam has succeeded in 
attracting a wide spread of mem- 
bers from Holland, France, the 
ILS., Belgium. Switzerland and 
Austria, British stockbrokers and 
banks have so far only partici- 
pated through subsidiaries domi- 
ciled abroad while discussion 
about the rules governing British 
membership continues with the 
Department of Trade. 

The EOE’s trading floor is in 
the merchants exchange, next to 
the stock exchange proper, on 
Amsterdam’s “Damrak." The 
building was originally the home 
of the Amsterdam corn exchange 

but Holland’s commodity trading 
is now concentrated largely 
on Rotterdam. Appropriately 
Chicago's grain traders were 
behind the setting up of the first 
U.S. traded options market 

In an indirect reference to 
London's plans to open a much 
more limited options market on 
tbe floor of tbe stack exchange 
in three weeks’ time, Mr. Andrees- 
sen commended the EOE's deci- 
sion to separate share and options 
dealings on two different floors. 

He also expressed the authori- 
ties’ concern that the Amsterdam 
venture should avoid the prob- 
lems of the U.S. markets, where 
further expansion of option -trad- 
ing has been halted pending a 
Securities and Exchange Commis- 
son inquiry. 

“Tbe American experience an 
options can serve both ‘ as ah 
incentive and a warning,” he 
said at the opening ceremony. 
“While dealings in options can 
cover risks entailed in the trans- 
actions in the underlying assets 
that can also create risks. I don’t 
object to risk-taking provided we 
know what the risks are and we 
are able to bear them.” 

Bertelsmann International Finance N, 


Curasao, Netherlands Antilles 

U.S.$ 20,000,000 
8Yz% Bonds of 1978/1985 

unconditionally and Irrevocably guaranteed by 

Bertelsmann Aktiengesellschaft 

GCtterslofb Federal Republic of Germany 

Deutsche Bank 


Com me r zb ank 


Chase Manhattan 

Atlantic Capital 

C oi poc fiua (. 


Shorter week in Belgium 


BRUSSELS, April 4. 

week won a notable victory in 
their campaign for shorter work- 
ing hours as a means of reducing 
the country’s high unemploy- 
ment, with Fabriqne Nation ale 
(FN), the small arms and aero- 
engine manufacturer, agreeing to 
reduce its statutory working week 
from 40 to 38 hours at the end of 
this year. 

This concession has ended a 
six-week strike at FN, -and the 
9,000-strong workforce is to 
return to work to-morrow. This 
balances tbe defeat tbe unions 
suffered last - month when 

demands for a shorter working 
week at a Ford plant in Genk 
were bought off by an offer of in- 
creased pay by tbe management 

The overall aim of the cam- 
paign is to reduce Belgium's cur- 
rent level of unemployment, run- 
ning at nearly 300,000, by spread- 
ing around what work is avail- 

Coincidentally, the European 
Trade Union Confederation 
(ETUC) has called a “European 
day of action " for to-morrow to 
underline their members' anxiety 

about tbe level of unemployment 

in the EEC. 

Hart in Gibraltar talks 


GIBRALTAR, April 4, 

cial support for Gibraltar is 
believed to be the probable out- 
come of development aid talks 
which began here today 
between Mrs. Judith Hart tbe 
Minister for Overseas Develop- 
ment and Gibraltar leaders. 

Education and housing are 
likely to be the main priorities 
in the Gibraltar Government’s 
development programme for 
the next three years. Reclama- 
tion in the port area to take 
account of increased container 

traffic is another pressing need, 

In tbe past there has been 
mounting criticism here of delays 

by British Government depart- 

ments In approving British- 
funded schemes for Gibraltar. A 

number of projects in the cur- 

rent development programme 
have not even been started, and 

will overspill into the next one. 

It is thought likely that aid in 
the region of £10m. will be 
granted at . this week’s talks 
which are to be followed later 
this month by a tough local 





is pleased to announce its 

membership of the 


as a Public Order Member 
and floor broker 

All transactions will be clear ec 
through the facilities of 



Portable detectors allow ypa 
to be aware of & locate elec- 
tronic "bugs” and Insure, 


• RTCW displays fight 
*RTVt 9 (jives audio - 



PJLficncIflab ... 
(2J2)3#«340TfltaC 238330- 


g m qpean 





ft-i" 1 ;. jJ 

* ^ ..-.• *-* . ;5 t-. 

central bank 


NEW POWERS are foreseen 

. •• L. » 

•-1 r £1* 

Fedend Council. A revision or 
thejsjaonaj Bank law would 
tte to 

vanous monetary measures 

Sh? h f ¥e wtberto pos- 
sible only on the basis of tem- 

The BUI would permit the 
bank to call In interest-free 
m i nimum reserves from the 
banks for holding on blocked 
accounts, a step Intended to 
allow sldminingeff of excess 
liquidity. The tank would also 
be able to increase or reduce 
these commitments in keeping 
with money-supply require- 

The reserve sums could be 
equal to maximom . rates of 12 

per emit of short-term demand 
deposits or 40 per cent of the 
rise in such deposits. In (he 
case of long-term deposits, the 
top rates would be of 2 and 5 
per cent, respectively. These 
percentages could be doubled 
for foreign deposits as an extra 
move to ward off non-resident 

At the same lime, the 
National Bank would be 
authorised to effect an open-' 

”«*— Playing on fears of past chaos 

market policy, purchasing or 

selling short-term securities as gy a SPECIAL CORRESPONDENT W LUBUMBASHf 

a means of expanding or reduc- 

vo5«Sn«r^ rCitl bankS LAST month's execution of 13 Zairean elite of private and state has carefully juggled the various they had not been paid for two 

In the foreign exchange field officers and civilians convicted of business are deeply concerned constituencies that abound in months, 
the maximum maturity for plotting his overthrow has given that the Zairean leader stay on, Zaire, Africa’s third largest Similar roadblocks are re- 
claims on foreign deals would * further dear indication that guaranteeing a freewheeling nation populated by over 250 ported on the main Matadi-* 
be raised from three to six President Mobutu Sese Seko has ecooomy where the entrepreneur tribes, bringing in or neutralis- Kinshasa road where lorries 
months and the bank allowed no intention of liberalising the flourishes and, despite the par- mg potential threats and ensur- carrying the capital's imported 
to acquire easlly-ncgottable one-man rule he has exercised in lous state of the economy, money ing that his power is undiluted, food supplies now proceed in 
promissory notes of Inter- Zaire for over 12 years. can be made and exported. There is said to be a parallel convoy to minimise the “tolls” 

national organisations or There are signs, too, that he President Mobutu’s system of command in the army alongside the army exacts. Unlike the 

foreign banks. is matching his firm regime at patronage and his harsh reaction the formal hierarchy, created on Presidential guard, the North 

home by keeping exceedingly to opposition, real or imagined, a system of fealty that runs Korean-trained Kamanyola bri- 

close tabs on the myriad opposi- have ensured over the years that directly to the president him- fade which is garrisoned in 

~ Uon groups in exile, mainly in there is a loyal body of suppor- self. At last month's tribunal, Shaba, experiences the same food 

XnQniCn Belgium, one of which was said ters in the army and in the most of the SO soldiers and end pay problems as the rest of 

to have intimate links wiih the administration as well as in the civilians sentenced to death or the army* 

A alleged leader of the conspiracy private business sector. He is, imprisonment came from the At the same time, the FNLC of 

• X Major Kalume Amba. ’ as a result, one of the few African central Kasai region or the CoL Nathaniel M'Bnmba con- 

VliniSkTPr 7 a\Tpan lpador ? leaders who travels frequently southern Shaba area— an indica- tinues to strike across the border 

J TlliUOtVi The Zairean leader is a man , . .. ■ . ... ■ — ; in Shaba, raising fears that a 

facing a lot of problems. The second insurgency may be in 

warns “““try ;s economic crisis is deep- Congo J Zaire kJ preparation. Lwdinine-laying and 

Tf 41 lid enlng, the situation here in the glk. ** ^ a 1 fr harassment raid* have been 

• v , southern copper-producing pro- wV TGnShasa % Sou-fa so fir to kfeu tS 

indlKfrV laR^vear'Kln^irrw? Kamanyola brigades tied down 

iliUUOlij; * n *==\ *: % in the province, and there has 

By Our Own Correspondent h e still feels it necessa r ?re pijft 1-^. J J, SSL 


r P i> 

{(i ur^iiipr anrnm*irtr facing * mt of prow,™,. The mrr. 

nesnti, diiiuuni) warns jenlng^the situation here^inMtbe L ^ ' 

w . » . southern copper-producing pro- =mjgEm; w Kinshasa 

k;i , h H BY JOHN WiCKS IN ZURICH 1 fl HllClTV vince of Shaba is far from settled ~ 

OllafftP i HiUllijli J after last year;s insurrection and, • 

s, ™3l reduce to 10 per cent. (25 per The economic shocks of the past By Our Own Correspondent h? Su fSsit necessa??' t^miree ^ 

i Csi; n soesback^fo rLS aiiifr special case of three years have meant that MADRID, April 4, not only the body politic but also 

Z &T H*sb!k AGUSTIN Rodriguez .-.-^iWLuanda 

.V'~ TaJ ? 1 y tried to make the Swiss canton’s ooouStST^ * V ^ , P I ^ ', . Sabagun, Spanish Industry Mini- the years President 

A’q, national hero,- William Tell, x>. r 4 . ' . . , Another element whk-h has ster, warned in an interview pub- Mobutu has developed an Anaola 

"■ . -, t '.v 3 - 7 v* ^“te his hat. stuck up on a ^SJ^^SSfL t0 °* ^“‘tely Played a part in popu- ii sh cd to-day that the Govern- intensely personal ised style of " 9 

i: • pole as a symbol of authority ? la . ce * the Federal Government laming the idea of the more nient will not come to the ru ^ e * surrounded by a prmleged _-_=r^Y 

-, r - . ' U v::. • ; had promised to . stabilise the centralised control was last year’s rescue of Drivate comoanies elite characterised mainly by its - " 0 ua« at 

happened number _of foreign . woikera; Credit Suisse scandal. The which have serious difficulties loyalty. He has been known to 

“ ' ^ sn 3 ® 1 - almost 700 years ago, the similar efforts In previous years National Bank and the Banking ,, , „ .. - , , . call himself “we and terms him- ‘ 7 

r' vl . ss , have retamed a deep- had failed because of insufficient Co mmi ssion found their way , 11 ^ as 11,5 first dec! arauon ggjf the “guarantor of Zaire’s abroad, often to his villa in 

1 * . . • '1^? r SP3TW1 ntPTVttef ^ ^ j . 1^1 — « - ><i. _ ' _ — «. _ » .a _ ■ _ . _ _ * Qlrtnrt n h uuc onrtni ntori u 1 nief op a . «■ <v- ■ _ _ ■■ r« : 

; mg the Government 
greater authority 


rcduee t0 10 Pe r «»*■ (25 The economic shocks of the past 
* ZhK -21 a H “ the special case of three years have meant that 

G ^? le _ r - bailiff of Geneva) within four years the there was little organised qddo- 

nalional organisations 
foreign banks. 





By Our Own Correspondent 
MADRID, April 4, 

- " especially work force wan the excessively crass interference and totally ;| rc suing through 

: 1 riie bailiffs, what to do) has quick expansion of the. economy, unnecessary. as a resu * t °f riie 

■h.*.— . , s resulted in what eomes close to Public opinion as to the neces- -ru. ___ Q _ F nom -’- 

1 .-.v > em| L? classi S al democracy with sity for “ Lnlerference-" from the himsu/S are embodied to a u The ? u “ istcr > 

lts Tmues Confederation and its agencies KSS? t *P- f <!>».«« 

f L second insurgency may be in 

0 / Zaire preparation. Landmine-laying and 

harassment raids have been 

^B 511353 '■ enough so far to keep the 

i Kamanyola brigades tied down 

\ ^1 * n riie province, and there has 

\ .-• — — t .J ^ been no indication that Angola- 

‘ : ^ Zaire detente is anywhere near 

>). . i S H A B & riie stage where these two bitter 

“BPPB \ ■ D n D enemies will reign in their 

i 1 nhiimkaehi respective surrogates. 

Angola umumiiasm President Mobutu's response to 

5 '1 ^ this will almost certainly involve 

:- an urgent appeal to the West to 

a tsats _ 4B B i Zambia bail him out in return for his 

— J stand against Communism follow- 

to his villa in Meanwhile, President Mobutu ^ Cuban and Soviet victories in 
tion of President Mobutu’s per- 811(1 riie Horn. President 

pffPPtivo qw . ret sistent efforts to minimise the Mobutu appears to be Pjeomg 
rvn ?nS threat from the Lunda and ^ ihope in the administration 
Baluba tribes of these areas. President Jimmy Carter than 

C ? B S c> -iwJ2r But there is. western diplomats ^ conservative Arab countries. 




v v? 

a * 

effective secret 

going through a crisis period “Z 1 ,. imeumeniauon oeatre/ oas B t ^ ^ western diplomats m conservative Aral 

result of the depressedeco- cffecnvely on tiie fear of many sured that there is no politician b li e limit to how long the Fra “ce and Belgium, 
result the depressed ecc Zaireans of rehvmg the ^and of any stature who provides a Unpalatable as 

5 vinue8 and vices. .. Confederation and its agencies fi ve .year agreement wkh' the > • . two leading em- 

This process, together with the changed fundamentally in view Swis, Banker? Association ployer * or S™\sztions. said in the 
ganie growth of thp Conftatora- of Phenomena such as the over- -a--. * _ . u‘,_V newspaper El Pais that the 

Ucf °- v, Qy m - re president’s system can survive in Unpalatable as President 

£ v,abIe P° , nt 1° ° pp ^" the face of deepening economic Mobutu's human rights record 

nany tl0 n. The well-trained and well- g 0 f ar the system has been may be. he will certainly present 

nuse paid presidential juai-d. draw* tQ ensure that all the people who himself as the only viable alterna- 
ueep mainly from President Mobutu s ma tter are at the President’s tive to expanded Communist 

* miniTnnm " rnmirv,V« n rVr.rt 'Z,wL The. past fftW years “ '“u — K*«-— -general strategic interests” or «... „ . - _ . . t . utfiuuu»u<iLeu, 8U i» uppimmuini «, 1S gemng Digger ana Decause or resources o* cupper, wu«« au u 

: V, ^ havp hrnmrirf a prowinir ? e oj fugitive money into when demand fell off drastically. * n j2*^S? l 5S t #r doubt “ there is is disorganised and frag- tbe economic crisis, the pie is industrial diamonds. If recent 

.. f°“ ai politics are important iwve ulOUgfli 3 growing Switzerland. In October the . ... creeping in with the emergence mented. split along tribal and eettina smaller ” indications are any thing to go 

: - «•“- need for delegated ■ association itself issued a set of of a J outhf ul largely urban ideological P lines and apparently S ^ adSon i there is the risk by. his rule at home will be 

jflmtoEli S S“ ucb nflwpr guidelines on fiduciary business - 1P ^ t A pat 5| r ° a |!f? 1 l ,^^ 1 . Pg ,. the generation with no first hand incapable of creating a unified „f growing resentment against harsh. Last January at least 700 

V"\ V—-: ^® r * and said it was working on pro- 1 e th *2^1 I " (r em t ory -, of preJfo 1 b “ tu front inside Zaire to stand against the ?resideat's rale in the cen- people were reported killed when 

; . V- is ^arkably circum- — — — ; posals for depositor protection. wlin- fnrS^nH tvS SI t w Its com P laints about the president When the insur- tra! and southern areas of the the Presidential guard put down 

: „ bed ' . The Credit Suisse case also J®J{ * _ f °™ t I C0I ^ up V on and geDts of the Front National pour country. The fact that most of a local wave of discontent in the 

;; ' Because this is how- .the -Swiss doublefigure inflation, mid the triggered off a Social Democratic Vt!m npprfe wl . de .“ m B. S. u,f between the la Liberation du Congo (FNLC) the 50.000 to 75.000 Zaireans who central and traditionally trouble- 

i.r. Aaj like it, and because- Switzerland <ioubling of the external value campaign to strengthen State J? nJfffnnwtof to rf t n Priviieged eiite and the rest of ma de their move in Shaba, there fled to Angola during the Shaba some Bandundu area. What 

has .proved so much- more the Swiss franco . control over banking: while tbe n 2n n 1 , n Vi n , ILnlS 6 }! ^aire s population— -twice was no corresponding upsurge of crisis have yet to return appears started the unrest appears to 

• ?.r; .v successful a venture than many It was increasmgly realised future referendum on this still accoruance warn uus the I960 figure. opposition in the capital L200 to be an indictment of both the have been shortages of food and 

"• of rts neighbours in modem that the complicated nature of vague motion is virtually sure H ■* , A survey conducted by miles north of here, and many President and the Zairean armed other supplies. President Mobutu 

!?«.■ f, history, the principle of direct the modern world anfcthe close to fail, it is symptomatic that it inefficient companies would not Western diplomats in Kinshasa of the groups that bubbled to forces, 8,000 to 9,000 of whom are badly needs the economic 
.r r>- and decentralised democracy not links between- Switzenaod and should be suggested at all. be helped and must realise that last year revealed that in the the surface at that time have now garrisoned in Shaba pro- revival he has promised i-f out- 

: :: w unnaturally came to be regarded other countries called for a more j n *u p fic Ca , sector there is a ? eir ^ of reckoning could not volatile 15 to 24 age group in since sunk quietly out of sight vince. breaks of tbe same kind are to 

- i- a* necessarily in the public effective .and 'flexible central erowtoe acceDt^ce of the iiupor- be put off for ever . the shanties surrounding the Acording to western intelli- The army itself is far from be prevented in the largely 

r. interest The econwnic paraUel Government This vheiief was ? ance " f the Confederation as a Babcock and Wilcox Espanola capital, unemployment was run- gen ce sources the secret police trouble-free. On tbe road leading neglected hinterland of Zaire 

< ;- v la Y m the development of vir- strengthened when, -fin 1975, the dispenser of funds— and thus of in Bilbao, in which tbe British nhig at 48 P er ce nt. i S extremely active in Zairean here from the Zambian border and. more importantly, in the 

ir - V" riially untrammelled free enter- economy plummeted and Beme the necessity for the central company Babcock and Wilcox has AH this paints a picture of exile circles in Brussels and 60 miles from here, ragged slums and shanties that surround 
■■ pme - ' took such steps .as an official Administration to take more in a 10 per cent stake, suspended potential unrest that prompts the Paris, keeping a careful watch soldiers manned six makeshift his capital. 

.1 : .. '."7- Tbe past few years, however, work-creation programme (which tax. Bit by bit, the Federal tax temporarily all its outstanding question: can Mobutu survive? on any ties they try to establish roadblocks, apologetically ex- This is lhejlrst of too orttetes 
■ ■ • have brought with them a grow- would have been anathema to a income is swelling. payments last month. The Many believe he can. and, with figures in the army or in plaining to those that asked that on Zaire. The second wilt deal 

- - - ing need for delegated power, right-thinking Swiss .of tniy a At ^ ^ machine tool manufacturer has indeed, must, The white and government at home. they had to exact “ tolls ” because with the economy. 

ould not become SSS^lf ttaSSBSTm native^uateurprevtoc^rep^ Sbtoto geUhSirstire of the pie.” influence in Africa and to Soviet 
asylum for com- SnrThP mi!p tn w sents ^ ehl ® army with one di p i omat analyst said. “The control of an area stretching 

it it would only KJSdured a uLiur! nf ii£ a per “ 1 P a, J?? 10 -^ S s ,°!J lvaJ ' problem now is that the number halfway across the continent with 
cases involving iSTSSSle f y ^ Sbaba cm,s 1351 year af People who should be there some of the world's major 

iLua c c siauuny. rtpmonsitratpri. such ononritiDn as ,r nntrinn vinour nnM hwuncp nt resnureps nf Conner, cobalt and 

7 ,'T, [7 general siraiegic inieresu or «... . . . ... ucmuuau a i«ru, suu, > JS gemng Digger ana uecauae oi u» 

the flow of fugitive money into when d eman£ i 0 ff drastically But . a new of doubt is there is is disorganised and frag- economic crisis the pie is industrial diamonds. If recent 

Switzerland. In October the creeping in with the emergence mented. split along tribal and getting smaller.” indications are anything to go 

association itself issued a set of 1 “ 1 l d T ^® t n JSf£f ^„ b ®5? of 8 youthful largely urban ideological lines and apparently s ^ addition there is the risk by. his rule at home will be 

guidelines on fiduciary business Jfo mu(* wternalKm during the generation with no first band incapable of creating a unified 0 f growing resentment against harsh. Last January at least 700 

and said it was working on pro- memory of pre-Mobutu days to front inside Zaire to stand against the President's rule in the cen- people were reported killed when 

posals for depositor protection. e " n °™ y offset its complaints about the president When the insur- tra! and southern areas of the the Presidential guard put down 

The Credit Suisse case also {?_!, a nn ^ n „ 0 ^ n d r s ^^ rt ^ es ' C0I ^ u P t ‘ 0n and gents of the Front National pour country. The fact that most of a local wave of discontent in the 

triggered off a Social Democratic to rnpnt fijtn?p widening gulf between the la Liberation du Congo (FNLC) the 50,000 to 75.000 Zaireans who central and traditionally trouble- 

campaign to strengthen State I?nIfiri nnw hP tof? tn P n . vd ®eed _ elite and the rest of ma de their move in Shaba, there fled to Angola during the Shaba some Bandundu area. What 

i-nntml nusr hnnlrino. urtiilp Ihp 0U1U HOW Oe left TO define TO elT Zaire S -5m. population — twice urac nn /-m-T-ocrmrifltoCT nnKlJfPP .vici. hnna vb» tn rptiim anmutrs Started the unrest anDParS tD 

> ing need for ddegated power, right-thinkmg Swiss .of Vnly a At th st e n S are machine tool manufacturer has indeed, must, 

■■■ -«= Just as Switzerland had to close .«m»_ the „„ at lonB U st beinc ate. to total ooBtaodhig debt, . 0/ 

ranks when surrounded by poten- introduction of comimtey un- “harmonise” ca otonaI taxes to p ts.l6bn. (Si 95m.) against total 

for emergracy action by the , forbidden ground it once was. and most private banks set up a 

powers-that-be during the ups -It was agmnst this background even although a real standardisa- “hospital bank” to come to the 

. and downs of the national and. rat; m February. • a large tion ^ loeaj tax systems is still rescue of ailing banks, but this 

majority in a referendum voted nowhere near in sivht. top« for tho vtl 

international economy ance the 

: i.ffaw«TvS ^ ‘ for Ghana 

lems have presented themselves snnmonai .rights of the Federal exaggerate the growth of the industrial level. no c. - r r 

JiSaSfiJiSt mt vy en * m centra] Administration’s power Recently, the Government has MORE THAN 700 refugees have According to newspaper reports Cunene province, the Units J 

parish-pump level or by a simple ^™ ed ^ ar ' base. The Federal Council and come under attack from em- fled across the Angolan border from the Namibian capital of guerillas are said to be “hard PREPARATIONS for a new 

referendum vote. . ... Parli ament will continue to have payers for not doing enough to Into the northern Kavango pro- Windhoek, attributed to “usually pressed.” constitution in Ghana are imder- 

One of the biggest was the ST knuckles rapped by the represent their interests and the vince of neighbouring Namibia reliable sources," which are ^ s th African Defence t?* 

result of a definite “up” of the P en “its electorate from time to time and Minister’s warning is likely to in- (South-West Africa) from fight- understood to he the South Union -Government in areferen- 

economy. From 1960 to 1974. the Government to intervene ^ ^niixme to steer clear crearetheirffiscontent {^between. Angolan Govlm- African Defence Force, toe An- ^ U ^ d dum. Six of the counts xuue 

peak year, the foreign. population .monetary, banking, public- entirely of some questions which rovPn , m ._ t ... _ pnfWt ment forces and guerillas be- golan Government offensive is regions voted for the Union for- 

of the country expanded by &>aoce and foreign-trade sectors, are subject to communal and longing to the rival Unita backed by Soviet MiG aircraft ment ; although it has always dis- mula which will mean a no-party 

Refugees flee Angola offensive 

nowhere near in sight. 
It would be a mi! 

idea for toe banking world has 


New Union 
for Ghana 

By Our Foreign Staff 

>i aky or 

residmit populationwas made-up of toe coun^> « the^tKworid imptogS to year) could be cut by province of Cuaado Cubmigo March. Secret^ for Information also ^t,awe£ 

Of sdiens— -had brought about an That provides a base for toe an ever greater extent on Swit- between 8 and 10 per cent by where a major offensve by Goy- The South African reports said toat a major offensive by The High Court judge who was 

xenoDbobe movement In 1970, formerly abhorred Idea of a State zerland and as changing views lhe half-year. eminent troops against Unite is said one whig of the offensive in toe Luanda Government had to supervise the referendum has 

some- 46 per cent of the elec- structural policy. Among specific bn the economy and social - said t0 b T e , under W. Their pre- Cuando Cubango had been halted been going .on in Cuando- emerged from hiding, saying that 

torate supported a drastic motion measures open to toe administra- services demand increased per- F<^a.u t,^ kmi** a,u y c**™ s™- sence m Kavango is theonly hard some 200 kilometies from the Cubango for the past fortnight be was intimidated by a group 

bv a nationalist Parliamentarian, tion /are the temporary raising or' formance from the Federal and hoiidaw. u.s. mKaimioa smoiw confirmation of reports that a Namibian border after Umta cut He claimed that 5,000 Cuban and of armed soldiers- Judge Isaac 
Dr James Scbwaizenbach, to cutting of federal taxes and dues. Administration. offensive has been the Government force^ supply 2,000 Government soldiers were Abban vanished just before toe 

/ launched. lines. However, in neighbouring involved. referendum. 

;/ c-: ;k- "v 

n fi torate supported a drastic motion measures open 10 me atHmnisua- services aemasd increased per- towcm mm. rmim d,u y axm sm- JU ?Y- u- iTZJ ** “““ ne was mnnum w > 

4 Q r \ ] bv a nationalist Parliamentarian, tion /are the temporary raising or' formance from the Federal and holidays u.s. wt^ruxioo sawiw confirmation of reports that a Namibian border after Umta cut He claimed that 5,000 Cuban and of armed soldiers- Judge Isaac 

1 1 11 All James Scbwaizenbach, to cutting of federal taxes and dues. Administration. r^iS , piii r « n Ncl major offensive has been the Government forces’ supply 2,000 Government soldiers were Abban vanished just before toe 

dXJ*- A-'- ■ •; -, T • launched. lines. However, in neighbouring involved. referendum- 


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U.S. team in Lebanese army talks 


AN AMERICAN military team 
to-day began talks here on 
assistance in rebuilding the 
Lebanese army. The five-man 
delegation met Mr. Fuad Butros 
the Defence and Foreign Minister 
and Brigadier General Victor 
Khoury, the army commander. 

Last August, the U.S. govern- 
ment promised to provide 
Lebanon with SlOGm. worth of 
arms and other military equip- 
ment to help President Elias 
Sarkis reconstruct the Lebanese 
army which had disintegrated 
during the civil war two years 

The Lebanese-American talks 
acquire a special significance in 
the light of preparations to send 
about 4,000 Lebanese soldiers 
forming the nucleus of the new 
army to South Lebanon to extend 
the Lebanese government's 

authority there — in co-operation 
with UX forces. 

A unit of Lebanese gendar- 
merie to-day began patrol duties 
on the main highway between 
the ports Of Sidon and Tyre. 
This is the first time in two years 
that Lebanese security men have 
ventured south of Sidon. Until 
the Israeli invasion of the south 
two weeks ago, the area from 
Tyre all the way to the Israeli 
border was virtually under 
Palestinian guerilla controL 

Mr. Sarkis is reported to be 
determined to have last month's 
UX Security Council resol nti on 
applied in the south in full. The 
resolution provided for Israeli 
withdrawal and for extending 
Lebanese national authority to 
the border region. 

Lt.-Gen. Ensio Siilasvuo, Fin- 
nish chief co-ordinator of UN’s 
peace operations in the Middle 

East, arrived here to-day for talks 
with Lebanese officials on pro- 
gress in deployment of UN troops 
in the south. 

About 1,500 of these troops 
have already taken up positions 
there. Their number is expected 
to double by next week, accord- 
ing to Dr. Kurt Waldheim, the 
UN Secretary-General. 

Rami G. Khouri adds from 
Amman: Mr. Mudar Badran, Jor- 
dan's Prime Minister, to-day 
began a three-day visit to Libya 
significant for indicating the way 
alliances within the Arab world 
may be shifting in reaction to 
the stalled peace initiative of 
President Sadat of Egypt towards 

Mr. Badran, who is also the 
Foreign and Defence Minister, 
rarely travels abroad, and 
usually concentrates on domestic 
affairs. His visit to Libya — at 

BEIRUT, April 4. 

Libya's invitation— is expected 
to concentrate on bilateral 
affairs, and is almost certain to 
result iu a resumption of the 
annual subsidy of some $I6m. 
that Libya had previously paid 
to Jordan under the terms of 
Arab summit agreements. The 
subsidy was discontinued after 
Libya broke off relations with 
Jordan after (be fighting between 
Jordanian forces and the Pales- 
tinian resistance in 1970-71. 

Relations were restored last 
year. Diplomatic sources here 
say that Colonel Gaddafy, the 
Libyan head of state, believes 
that the Jordanian attitude 
towards the Sadat initiative has 
been honourable and correct, 
and that it was primarily the 
refusal of King Hussein to join 
the Egyptian-Israeli talks in 
Cairo that has exposed the 
obstinacy of (he Israelis. 


Financial Jtmes Wednesday April 5 197g 

No big Israeli withdrawal yet, UN claims 


ISRAEL has not withdrawn any 
substantial number of troops 
from Lebanon, according to UN 
officials and correspondents on 
the spoL Their eye-witness 
reports contradict an Israeli army 
statement yesterday that there 
has been a significant thinning 
out of troops during the past 

The three-day lull in fighting in 
tbe occupied-zone was shattered 
yesterday when Palestinian forces 
north of the Litani River fired 18 
shells at tbe Christian village of 
Marjayoun just east of the 
Khardali Bridge. Israeli troops 
did not intervene, but fire was 
returned by tbe Christian militia 
in the village. 

The small build-up of UN 
interim force (UNIFIL) troops is 
continuing, with 1,700 already in 
place. In addition to the French, 
Swedish, Norwegian, Iranian and 

Canadian soldiers in south 
Lebanon, troops are due to arrive 
from Nepal, Senegal and Mexico. 

The UN spokesman in 
Jerusalem said to-day that the 
issue of Israeli troop withdrawals 
was still under discussion- be- 
tween the UN and Israel. Lt.- 
Gen. Siilasvuo, bead of the UN 
Peace Keeping Missions in the 
Middle East, on Sunday met with 
Major-General Mordechai Gur, 
the Israeli Chief of Staff, “ to 
discuss the modalities of the 
Israeli withdrawal." 

According to the spokesman, 
no final time-table had been 
agreed and there were no indica- 
tions that Israel had pulled out 
any troops. 

The Israeli army spokesman 
insisted to-day that Israel had 
withdrawn some troops but 
refused to specify how many or 
from which fronts. He denied 

reports in some Israeli papers 
that troops had already- been 
withdrawn from the Litani River. 

Correspondents In south 
Lebanon reported that they saw 
no indication that Israel was 
withdrawing or even preparing 
for withdrawal 

It is understood that Mr. 
Samuel Lewis, tbe U.S. ambas- 
sador. discussed the issue when 
he met yesterday evening Mr. 
Menahem Begin, the Prime 

It is expected that there will 
be some agreement on troop 
patrols shortly. Mr. Ezer 
Weizman, the Defence Minister, 
who is due to return to Cairo' 
next week, will want to show 
Israel’s goodwill by pointing to 
the agreement to pull back troops 
or possibly the beginning of this 

The Cabinet held a lengthy 

TEL AVIV, April 4 

debate on Sunday when Mr. 
Weizman reported on bis talks in 
Cairo last Thursday and Friday, 
The Cabinet expressed regret at 
the Egyptian rejection of Israel’s 
call to renew the work of the 
joint military and political com- 
mittees. - 

Mr. Weizman believes that the 
continuing talks with the Egyp- 
tian leader will help to rebuild 
mutual trust between the sides. 

However, the Foreign Ministry 
has been, expressing fears that 
President Sadat's willingness to 
bost Mr. Weizman is part of the 
Egyptian leader’s effort to deepen 
the rift between Israel and the 

Ministry officials fear the Presi- 
dent wants to demonstrate that 
he is keeping the door open but 
that it is Israeli intransigence 
on key issues which is preventing 

Japanese Diet passes budget 


JAPAN'S fiscal 1978 budget 
became law to-day after passing 
through the Upper House of the 
Diet (Parliament) just four days 
after the start of the fiscal year. 
Two enabling Bills cleared the 
House of Councillors by a vote 
of 125 to 109 with most opposi- 
tion members voting against the 
budget on the grounds that it 
does not fully meet their 
demands for big income tax cuts 
this year. 

In Japan, separate bills are 
required to enable spending on 
general account (amounting to 
Y34,295hzL, around £83bn. f in 

1978) and the Government's 
fiscal loan and investment pro- 
gramme (Y14,880bn.). Accord- 
ing to the Construction Ministry 
to-day, public works projects 
placed under its aegis by the 
1978 budget will produce 
Y23,500bn. worth of new demand 
in the Japanese economy and 
create an estimated 50,000 new 

The Ministry indicated, more- 
over, that Jt will cany out tbe 
Government's declared policy of 
“telescoping" a sizeable portion 
of public works spending into 
the Aprii-June quarter. 

It is estimated that the 

TOKYO, April 4. 

Finance Ministry will have to 
raise an unprecedented amount 
of funds with the public to 
finance the increased budget 
deficit Traditionally, Tokyo has 
kept a lid on the deficit at 30 
per cent of the budget but the 
latest estimate for fiscal 1978 is 
37 per cent, and it could go 
higher if, as expected, a supple- 
mentary budget is introduced in 
the autumn. 

In pushing tbe budget legisla- 
tion through the Diet, the 
Japanese Government was forced 
to make modest amendments in 
the budget to secure the approval 
of some opposition members. 

Tokyo airport to open in May 


IN THE midst of continued 
threats from radical opponents 
that they will fight on, the Japa- 
nese' Government announced 
to-day that it will officially open 
the new Tokyo International air- 
port at Narita on May 20 and 
that the first scheduled flight will 
touch down on the following day. 

The new date was signalled to 
all foreign airlines' who now 
must take tbe necessary mea- 
sures to switch their flight pro- 
grammes from the present 
Haneda airport near Tokyo to 
Narita, 40 miles outside the 
Japanese capital. 

At a special Cabinet meeting 

this morning, the Government 
also agreed to create an airport 
security guard charged with pre- 
venting any further violence at 
Narita of the kind which forced 
the delay in opening of the air- 

.Only days before the airport 
was to open, thousands, of pro- 
testers scuffled with some 14,000 
riot police in and around the 
airport while a half-dozen radi- 
cals got into Narita’s control 
tower and smashed several mil- 
lion dollars’ worth of ground 
communications equipment 

The Cabinet has apparently 
ruled out the arming of airport 
riot police with pistols. 

TOKYO, April 4. 

Meantime, opponents of the 
airport, which was completed in 
1972 and has stood idle ever 
since because of protests from 
Narita farmers and their radical 
supporters, have begun to build 
another makeshift steel tower on 
private farmland at the end of 
Narita’s 4,000 metre runway. 

It is the third makeshift tower 
built on the same spot In the 
past six months— -the previous 
ones were torn down by police 
who are authorised to enter the 
private enclosure only when the 
steel structure infringes on air 
space vital to the safe operation 
of the airport 

Nkomo to 
new meeting 

LUSAKA, April 4. 
LEADERS of Rhodesia's Pat- 
riotic Front guerillas will meet 
soon to discuss their response 
to the latest Western peace moves 
for the territory. Front co-leader 
Joshua Nkomo said to-day. 

He and Mr. Robert Mugabe 
may bring forward a meeting 
planned for next week to work 
out their position, Mr. Nkomo 
told a news conference here. 

Britain announagP yesterday 
that British and U.S. envoys 
would visit Africa soon to try to 
arrange a two-stage conference 
on a Rhodesia’ settlement. 

The envoys, Mr. John Graham 
from the Foreign Office and Mr. 
Stephen Low, U.S. Ambassador 
to Zambia, will attempt Initially 
to arrange a meeting between 
Anglo- Amercan negotiators and 
the Patriotic Front and then an 
all-party conference grouping the 
Patriotic Front signatories of the 
internal agreement and other in- 
terested parties. 

Mr. Nkomo made it clear that 
the Patriotic Front maintained 
its earlier stated stand on peace 

“We made it clear that we 
have not accepted the Anglo- 
American proposals but that we 
agree to negotiate with the 
British and the Americans on 
the basis of those elements that 
are acceptable,” Mr, Nkomo 


Japan has edge on EEC in China 


JAPAN SEEMS likely to hold 
an advantage over Western 
Europe in exploiting the oppor- 
tunities created by China’s re- 
cently announced economic 
modernisation plans even though 
the EEC has succeeded in nego- 
tiating a trade agreement with 

This was forecast by Mr. 
David Newbigging; chairman of 
the Hong Kong-based trading 
group, Jardine Matheson on the. 
second day of the Financial 
Times Asian. Business Briefing 

Mr. Newbigging said Japan 
appeared to have the edge over 
Europe in that its newly con- 
cluded trade agreement with 
China provided for specific 
quantities and types of goods 
to be exchanged (totalling SIQbn. 
each way over an eight-year 
period) whereas the EEC agree- 
ment only provided a legal 
framework for trade. The ex- 
tension of Most Favoured Nation 
treatment to China in the agree- 
ment would not make much dif- 
ference. Mr. Newbigging said, 
because the EEC was already 
applying MFN rates to its im- 
ports from state trading coun- 
tries. Another questionmark 
over EEC-China trade involved 
the speed at which the EEC 
Commission would be able _ to 
negotiate the expansion of im- 
port quotas on Chinese products. 

Despite European handicaps 
vis-&-vis Japan in trade with 
China, Mr. Newbigging said he 
still expected very “substantial ” 
growth - in China’s trade with 
Europe over the next few years. 
He thought China was particul- 
larly interested in obtaining 
technology and advanced indus- 
trial equipment from the U.1C, 
West Germany. France and Italy. 
He took a much more limited 
view of the prospects for U.S.- 
Chlna trade which, he said, 
remained constricted by political 
problems (arising out of ^-S- 
noa-recogaition of Peking). Until 
these problems were sorted. put 
China would continue limiting 
its imports from the U.S. to pro- 
ducts it could get nowhere else 
( for example, commercial jet air- 
craft, urea fertiliser plants, com- 

puters and some types of machine 
tools). Products like wheat and 
soyabeans would only be bought 
from the U.S. when market con- 
ditions forced China to do so. 

Reviewing the prospects for 
Hong Kong-China relations, Mr. 
Newbigging expressed confidence 
and optimism. He estimated 
China’s foreign exchange earn- 
ings from Hong Kong at Detween 
$2bn. and S3bn. per year and said 
that, so long as this flow of funds 
continued, Cbina would be .un- 
likely. to want to disturb the 

status quo. “It is practical 
politics, rather than 29tb century 
agreements, which will determine 
tbe future of Hong Kong." 

Mr. Newbigging’s assessment 
of China’s future trade relations 
was balanced by a review of 
Japan's overseas relations in 
which Prof. Kei Wakalznmi of 
Kyoto Sangyo University argued 
strongly for a more activist 
foreign policy. . Mr. Wakaizumi 
presented _ opinion in Japan as 
being divided between pacifists 
who believed that Japan re- 
mained powerless to influence its 
external environment and advo- 
cated a continuation of “low 
posture policies” with heavy 
reliance on the U.S., and activists 
wbo felt that Japan must play a 
leading part in “reshaping the 
international order." 

As examples of successful 
“ activism ” by Japan in tbe 
recent past Prof. Wakaizumi 
instanced Japan’s new policy of 

developing an equal partnership 
with South East Asia and Its 
strategy towards China and tbe 
Soviet Union which called for 
closer relations without the 
disturbance of regional power 
balances. He conceded, never- 
theless, that Japan, faced the 
extreme risk in both regions 
notably in South East Asia where 
it could be considered to be in a 
“no-win situation.” 

Excessive Japanese interest in 
furthering the economic develop- 
ment of South East Asia was 
likely to lead to accusations of 
dominance whereas a hands-off 
policy would provoke charges of 
neglect Prof. Wakaizumi’s over- 
all view of Japanese foreign 
policy options was supplemented 
by a paper on business develop- 
ment in Japan in which Father 
Robert Ballon of Sophia Univer- 
sity of Tokyo explains the 
Japanese viewpoint on some of 
the hot economic issues now at 
stake between Japan and the 
developed West 

Tbe remainder of the second 
and final day of the Briefing was 
taken up with a review of bank- 
ing and financial developments 
throughout the region with stress 
■ on tbe emergence of- a multi- 
plicity of Asian financial centres. 
Mr. Michael Bentley o f the Korea 
Merchant Banking Corporation 
drew attention to the emergence 
of two types of merchant banking 
organisations in Asia, one linked 
to major international institu- 
tions such as the big American 
banks, the other predominantly 
regional or natianaL He argued 
that* there was a place for both 
types of institutions but stressed 
that both needed interantional 
financial expertise. Mr. Bentley 
said that the spread of merchant 
banking services in Asia seemed 
not to apply to northeast Asia 
with tbe single exception of 
Korea where, he noted, the func- 
tion of merchant banks were 
being rigorously defined by law 
instead of being left W develop 

Mr. Sumlo Bara, Executive 
Adviser to the Bank of Tokyo, 
considered the question of 
whether Asia could be considered 
to have "none, .one or many” 
financial centres and concluded 

that the region had had none at 
tbe start of the 1960s but now 
boasted up to four centres with 
Singapore being followed by 
Hong Kong, Tokyo and, most 
recently, Manila. He painted to 
the role of Asian financial centres 
in completing the “ time 
sequence band ” between the 
Middle East (Bahrain) and the 
west coast of the ILS. 

Mr. Hara's overall review was 
supplemented by detailed 
accounts of -the offshore money 
markets of Singapore and 
Manila. Hr. Thomaj Duffy, Vice- 
President of Chemical Bank, 
described the planned growth of 
Singapore as so (international 
financial centre under the guid- 
ance of the Monetary Authority 
of Singapore and uiing expertise 
drawn from the City of London- 
He noted a complementary 
redationslup between Singapore 
and Hong Kong wip the former 
provfcting the rnafr inter-hank 
money market for the region 
through the Asiadollar Market 
and Hong Kong teLfdng the lead 
as a centre for commercial loans. 
He. Jose B. Fernandez of the 
Philippines Far East and Trust 
Company disputed tbe notion 
that the deveioptog countries 
could not play ho* to on inter- 
national financial (centre while 
admitting -that, in planning such 
a centre, the Philippines Govern- 
ment had aimed in part at im- 
proving the flow pf funds and 
information between the Philip- 
pines and tiie international bank- 
ing community. j 

In the final papir of the con- 
ference Mr. David. Bona. via, 
China specialist [on the Far 
Eastern Economic Review, looked 
at the prospects! for a war 
between Russia a M China and 
emerged with the conclusion that 
the Soviet Union-' would have 
little to gain frod it A pre- 
emptive nuclear strike by the 
Russians could knock out many 
Chinese cities. Mrj Bonavia said 
but might leave ttie Soviets vul- 
nerable “if the UjS. decided to 
join in,’’ besides exposing Mos- 
cow to a hostile World opinion, 
not least because 'of the conse- 
quences in terms of atmospheric 

Energy and 
tax bargain 

By Jurek Martin 


THE GARTER Administration is 
toying with the idea of back- 
ing a Congressional bargain 
on two outstanding policy 
issues— tbe stalled Energy BUI 
and the growing desire to re- 
duce recent and planned social 
security tax increases. 

The principal advocate of the 
ingenious scheme, whereby the 
proceeds of the proposed tax 
on crude oil would be used to 
compensate for a cut in social 
security levies, is Congress- 
man A1 i n i man , chairman of 
the House Ways and Means 

He appears to have struck some 
responsive chords inside the 
Administration, which is mak- 
ing last ditch efforts to get a 
reasonably effective Energy 
Bill through Congress and 
which is simultaneously afraid 
that Congressional action on 
social security can only lead 
to the dismemberment of the 
S24.5bn. tax cut package. 

However, both Administration 
and Congressional sources 
acknowledge that it might be 
difficult to get Congress to 
accept this linkage. Senator 
Russell Long, Chairman of the 
Senate Finance Committee is 
thought to have a low regard 
for the crude oil tax in any 
case, a dim view about tinker- 
ing so soon with social 
security and profound scepti- 
cism about linkage. 

Just about the only circum- 
stance under which Mr. Long 
would permit the crude oil tax 
to take effect would be if the 
oil and gas industry received 
a sizeable chunk of its pro- 
ceeds so as to encourage fur- 
ther exploration. The Ad- 
ministration, of course, wanted 
the proceeds to be ploughed 
hack to consumers. 

Mr. Michael Blumenthal. the 
Treasury Secretary, is due to 
testify to-morrow to Congress' 
and it is thought he will re- 
veal the Administration's 
band on Mr.Ullman’s proposal 
then. There are powerful 
forces inside the Administra- 
tion who think that the crude 
oil tax is dead already and 
.that the President can ill 
afford to delay much longer in 
imposing stiff taxes on foreign 

Move to allow 
airlines to 
reduce fares 

By John Wyles 

NEW YORK, April 4. 

THE CIVIL Aeronautics Board 
(CAB) has decided to issue a 
landmark proposal which would 
give U.S. airlines substantially 
greater freedom to cut 
domestic air fares. 

The move Is a further reflection 
of the philosophy of Mr. 
Alfred Kahn, who took over 
recently as chairman of tbe 
CAB. It is also in step with 
the intent of a Bill being con- 
sidered by Congress which 
would remove many of the 
regulations which have tradi- 
tionally governed U.S. airlines 
domestic operations. 

Mr. Kahan and his colleagues 
believe that there is substantial 
scope for reducing domestic 
air fares and, during the past 
year, the CAB has approved a 
broad range of cut-price air 
fares which, with certain book- 
ing restrictions, has made seats 
available on scheduled flights 
at as little as 50 per cent of 
normal prices. 

The new CAB proposal would 
free the airlines from tbe need 
for Board approval for a range 
of fare reductions. For 
Instance, the Board’s rule that 
first class fares should usually 
be 62 per cent higher than the 
normal economy fare would be 
removed, and the airlines 
would enjoy greater freedom to 
apply fares in particular 
markets, although general in- 
creases or reductions would 

still need CAB approval 

The proposal would also 
formalise the board’s de facto 
shelving of its traditional profit 
impact test, which required it 
to be satisfied that discount 
fares would generate more 
profit for the carrier than did 
the status quo. 

The first whiff of the new policy 
became apparent last month 
when the CAB allowed Western 
Airlines and National Airlines 
to cut their Miami to Ins 
Angeles fares by 35 per cent., 
without any of the ‘usual dis- 
count fare booking restrictions. 

Some of the financially weaker 
airlines are nervous about the 
new dawn breaking over the 
industry, although tbe CAB 
maintains that its ability to 
prevent predatory tactics will 
not be impaired under its new 
policies. Evidence of the un- 
ease came yesterday when the 
chairman of National Airlines, 
Mr. L. Maytag, warned that, 
although "excessively dis- 
counted” fares were ancreasing 
traffic, they would also hurt 
the profitability of "the 
industry. Arguing that discount 
fares must be suitably hedged 
about by restrictions to pre- 
vent the diversion of normal 
■business, Mr. Maytag cited his 
airline’s experience on the 
New York-Miami-Fort Lauder- 
dale route where few restric- 
tions have been Imposed on 
the sale of cut-price tickets. 

“Our airport personnel were 
besieged up to the last moment 
by passengers holding regular 
fare tickets who wanted to 
switch, IF a super-no-Erills seat 
became available through a no- 
show. Additionally, the no- 
show (ticket-holder falling to 
turn up) problem increased,” 
Said Mr. Maytag. 

Canada raises lending ra% 
to stem fall of its dollar 


THE CANADIAN Government 
has moved again to try to stent 
the decline of the Canadi nn 
dollar by increasing the Bank of 
Canada lending rate to 8.5 per 
cent, and increasing its line of 
credit for US. dollars by'Blbm 

The increase in the standby 
credit with Canadian chartered, 
banks from $US1.5bn. to 
$US2-5bu, and the announcement 
that the Bank of ftanarffl lending 
rate will rise 0.5 per cent- was 
made late on Monday. It followed 
a drop in the Canadian dollar to 
under 88 UE. cents, the lowest 
point since the depression of the' 

In the Commons, Mr. jean 
Chretien, the Finance Minister, 
made the surprising disclosure 
that he plans to bring in a new 
budget this month. Earlier, he 
had been rejecting Opposition 
calls for a budget by saying be 
wanted to see how the financial 
measures he introduced last 
autumn were working through 
the economy. 

Opposition leader, Mr. Joe 

Clark, said that the budget 
should introduce sales tax cuts 
and reductions in income-tax for 
the low and middle-wage income 
earner. He said the Government 
should not bring in a “do- 
nothing ” budget at a time of 
severe economic crisis. 
.Opposition MPs outside the 
House were cynically predicting 
that the Government would in- 
troduce massive tax cuts and 
then dissolve Parliament to go 
to the country for a general 
election In June, 

Mr. Chretien said that the date 
of the- budget will be announced 
after Thursday's Cabinet meet 
fog. She announcement by the 
Bank of Canada caine some hours 
after Mr. Chretien’s budget dis- 

The higher lending rate took 
effect on Tuesday. Mr. Gerald 
Boney, Governor of tbe Bank, said 
that the pressure on the Canadian 
dollar resulted partly from 
normal seasonal weaknesses in 
the balance of payments, causing 
an outflow of funds, and partly 
from a temporary hill in foreign 

OTTAWA. April < 

borrowing by provinces, mu 
panties and corporations. rei 
mg the the currency ent& 
Canada. ^ 

Mr. . Chretien gave the s 
reasons for the increase in sti 
by. credit He said that Gov 
meat reserves had been uset 
moke up for the lack of cat 
entering ^ 

The $US75Qm. raised b 
recent bond issue in the U &. ‘ 
heap replenish the reset ' 
added Mr. Chretien. The Gov 
meat’s actions came after i •! 
dollar closed following Mont l ' 1 
trading at 87.95 UB. cents d . . 
from its opening level oi 
cents. At one point the Cana 
doHar was listed as low as 5 

Experts in the Finance De 
ment here could only attri 
the drop to disappolntmoit a 
Bank of Canada’s failure to { 
its lending rate to chart 
banks last week-end. Banker* 
anticipated the rate inct 
because of an expected lei 
rate increase by the U.S. Fei 
Reserve Bank, 

Trade deficit expected to wide 


THE U.S. trade deficit could per cent, turnaround in relative 
widen by a further $8bn.' this U.S. export prices in 1975 and 
year before improving in 1979 the first half of 1976 which was 
according to a new study P ar * Uel *> ***%£? 

rele^d under the ewpices of 

the Brookings Institution to-day. lag g0O ds trade has declined by 
The author, Mr. Robert Z. nearly 2 percentage points, with 
Lawrence, argues that this will the bulk of this coming in 1975 
be caused principally by the and 1976 when the dollar was 
deteriorating competitiveness of strong. 

U.S. manufactured goods in officials from the UB. Treasury 
world markets, _ brought about adamantly argued that 

by the appreciation of the dollar there bag been no substantive 
in 19 #5-76, which has still to decline in U.S. competitiveness, 
work itself through the system. a position which has been partly 
Mr. Lawrence's calculations supported by different indices 
use the balance of payments compiled by the International 
method of determining the trade Monetary Fund, 
figures, which is widely used out However, the overall thrust of 
side the UE. On this basis, the -my Lawrence’s argument is very 
U.S. deficit last year came to much in line with current 
S3 1. 4b xi ^ about £5bn. more than Administration policy towards 
the merchandise trade shortfall the deficit# and;' to a degree, the 
which is normally emphasised dollar. The author expects the re- 
he r®- , . „ . . „ cent decline 'in the value of the 

On the basis of the trade dollar to have its impact on 
figures from the first quarter of competitiveness, though perhaps 
1975 to the first half of last year, at a rather later date than does 
he finds that about half the the Treasury. 

S39.4bn. turnaround in the trade But his general prescription is 
balance was accounted for by a familiar one. Although he 
the surge in ail imports, . a anticipates no real increase in 
quarter by the failure of cyclical oil imports this year, an energy 
recovery overseas and a fifth by policyr is nonetheless required, 
competitive deterioration. so is. greater growth overseas, 

Mr. Lawrence points to a 15 .^an Effective, programme on 


domestic inflation: and a pi* 1 *** - 
of non-interference with tht»! jP 
lar on the foreign eacdrU 1 * 1 ' 

Another paper in the B 
ings series highlights a cu 
economic phenomenon whic . 
escaped attention. Last yei 
a time when the federal la 
was in deficit by $5 Obn^ 
when big cities like New* 
were supposedly all going l 
state and local government 
up a staggering §29.2 bn. be 
ary surplus. 

President Carter has 
state and local govera 
“ under-spending ” as a dr; 
the economy. Local anthc 
had countered by claiming 
much of their surplus came 
non-productive areas sue 
social insurance funds, 
author of the Brookings ; 

Mr. Edward M. Gramlich r 
Un i v e rs i ty of Michigan, s<__ 
to side with tbe President 
conclusion that the prime j _.. J « 
was the sharp decline inTji'li;] l 
and local government eootr 1 r a 1 i 
tion spending. 

If the analysis is com 
has fairly profound policy, 
cations, particularly it 
federal government with a ' 
ness for public works 


Close race to the 
presidential post 



Pabst expects sharp first 
quarter decline, Goodnck deal 
in Portugal, Beker accounts 
queried— Page 34 


VENEZUELA officially launched 
its 1978 presidential campaign 
last week-end with - a spirited 
assortment of rallies, marches, 
and “romerias” (picnics) all over 
the country. 

Candidates spoke to cheering 
crowds in provincial cities, shook 
hands by the thousand and 
munched local delicacies while 
their supporters drove long 
caravans of decorated cars 
through the larger cities, honking 
boras, blasting out songs on 
loudspeakers and littering streets 
with leaflets. 

Venezuelans will go to the 
polls ah December to choose a 
new president national con- 
gress, state and local represen- 
tatives. They will all take office 
in March next year and serve 
for five years. Most campaign 
energy, though, will be directed 
toward the election of each 
party’s presidential candidate. 
This will be the fifth popular 
election held since tbe country's 
las* dictator — Gen. Marcos Perez 
Jimenez — was ousted by a 
military -civil revolt in 1958. 

Venezuela, the largest petro- 
leum producer in Latin America 
and tiie country with the re- 
gion's highest per capita income, 
ranks as one of the few nations 
south of the Rio Grande which 
has a multi-party system and 
regular, democratic elections. 
Although dictators ruled this 
South American republic through 
most of its history, 'the demo- 
cratic process is now function- 
ing quite smoothly. 

The current government faces 
no threat from the military 
which, quite to the contrary, is 
working to ensure that the elec- 
tions are carried out in an 
orderly manner.* Communist 
extremists last year staged a 
number of attacks on small vil- 
lages, killed Venezuelan soldiers 
and warned peasants not to vote. 
But the guerilla threat in Vene- 
zuela, a major force during the 
1960s, is now a marginal problem. 

The present administration, 
headed by President Carlos 
Andres Perez, has enjoyed bil- 
lions of dollars income from 
petroleum exports and has ini- 
tiated the most ambitious 
development programme in Vene- 
zuelan history. 

Even so, the government party, 
Accidn Democr&tica (Democratic 
Action), will have a tough, 
battle to regain the presidency 
since many Venezuelans are 
highly dissatisfied with chroni- 
cally poor public services, are 
critical of rising prices and 
government waste and' tend to 
blame these problems on the 
current administration. 

Under the Venezuelan consti- 
tution- -Sr. P6rez — like all other 
incumbent chief executives here 
—cannot return to the presi- 
dency for ten years. 

More than 4m. Venezuelans 
voted in the elections five 
years ago when Sr. Pdrea 
won the presidency. Around 


6m. are eligible to vote 
this year, out of a national popu- 
lation of 13m. Eight candidates 
representing eight parties are in 
the running at present, and more 
expected to join the fray later 

In 1973, President Pfirez. repre- 
senting AD, won with 48.6 per 
cent of the vote. The candidate 
for the chief opposition party, 
the Social Christian (COPEI), 
earned 36.7 per cent Numerous 
other parties entered those elec- 
tions but none received anything 
approaching 10 per cent . 

The far Left parties together 
took just under 10 per cent of 
the 4.1m. valid votes cast and 
other minor groups shared the 

remainder. - 

The race this year is primarily 
between the two “establishment" 
parties (AD and COPEI), both of 
which expouse Left of Centre, 
reformist philosophies. In fact, 
it will be extremely difficult to 
tell the two apart this time 
around sin ce their positions on 

Venezuela, the largest petra 
leum producer in Latin. 
America, ranks as one of the 
few nations south of the Rio 
Grande which has regular, 
democratic elections. It will' 
prov e it this December: 

most matters are nearly the 
same. In the four elections held 
since 1958, AD has won the presi- 
dency three times while the 
COPET candidate. Dr. Rafael 
Caldera,- captured the presidency 
in a close race in 1968. 

The two top candidates in 1978 
are Sr. Luis Pinerua Ordaz for 
tbe government party and Sr. 
Luis Herrera Camping of 
COPEL Both men were ■ born' 
in rural Venezuela in 1925- and 
have devoted their professional, 
lives tor party work. 

Sr. Pifierda is a member of The 
Chamber of Deputies and secre- 
tary general of his party. He has 
served as \ Minister of tbe In- 
terior, acting president, head of, 
the National Agrarian Institute 
and governor of Monagas State.. 
Described as an excellent id-, 
mimetrator, he is basing his cam- 
paign on a continuation of- the 
pgrez ;■ administration- • pro- 
grammes, with special stress on' 
housing, water, agriculture and 
Government clampdowns on 
crime and official graft. 

The Copel candidate, Sr. 
Herrera Canspins. is a senator 
and joornalist who has been a 
party- official for many years. His 
work within the Social Christian 
movement took him to Europe 
many times, where he learned 
French and Italian. 

Sr. Herrera has an easier task 
than' his AD opponent in that he 
can .naturally assume' the offen- 
sive position and blame tbe AD, 
government for popular problems 
such . as '.water shortages, power 
cuts, higher prices of food and 
clothing, ; housing ' deficiencies 
and the perpetual enarl 'up 
of public transport, His party 

Sr. Carlos Andres 

contends that despite AD . 
Log of over SSffbn. In' thi| 
four years — more than any. 
government in Venej 
history— things have got wt 
Copel must work hard, tl 
to overcome the trad) 
numerical superiority of J 
Democrftica. AD has i 
been stronger than Its opp 
except for the 1968 race; 
AD suffered one of its .xi 

internal divisions, a split' 

cost it the presidency. 

poll gave each wajot;- 
-didate 54 jw;eentr of the 
dential vote. -This, was,; si 
good news; by AD leaders, 
their candidate had been y 

'behind "steadily for" 
months: v‘. 

- Besides its appereat, 
as the government r 
Demo optica ; .also - 
nearly :-13bu 
according ' toFarty: 
Membership 5 in' 
estimated to he.-, 
and 800,000. But . 
members vote --the; 
Venezuela, -.and; J ., 
-largest block 
.indepriident. v . : 

Oner- pcrtentulr' 

Sr. : Diego -AiriavV ® 
governor of Caracasaph 
of Information; and 
government. Sr. 

sfderable -popularitfcM 
and can be expected w . 
if he"; decides 
. president ;? . • • * ' 

- Other candidates :*0 

JosA Vicente ..Raw* 

BettrAn Prieto' of toe 
Electoral Movement, sr, - 
Martin of the Left Be¥ ^L l 
Movement, Sr, Hector Nnj 
the Communist Pmty- »■ 
Pablo. Salas-CastiUo. ' 
Nationalist Qtar Crusade 
Alejandro <Wmez, SDva of fit 
Suited NatiohalisLFront y J 
OTthesA the varies. w£ 
best chance’ of oW?l 0I “ ■ 

, iaWS wbaS gjS 

lationaxy ;• Move SSen' ** 
P arties have . 

•reunions ®nd slum are** 


“ Aprils. 

3^aai»^ TSines Wednesday April 5. 1978 


to visit Tokyo for 
economic talks 


■ Minister, Mr. Malcolm Eraser, 
a*.?*} “® Japanese. Premier, Mr 4 
Bnee t for two days 
«;f n Tokyo this month to' explore 
' 5 £'- /a3 - s 171 w*>ich prospects for the 
* ^Various international trade and 
■v cononuc policy discussions over 
K he rest of this year might be 
i improved. 

European car makers 
discussed tariff rise 


Honeywell Japan venture 

kets and increasing friction, not 
only between - developed and 
developing countries but 
generally. Mr. Fraser sees this as 
a critical year and 'believes every 
avenue should be explored to see 
that all Governments are behav- 
ing responsibly. 

Mr. Fukuda will tie visiting 
Washington -shortly . after his 

CANBERRA, April 4. 

night, Mr. Fraser stressed that 
he would not be raising bilateral 
issues. He expected the talks to 
cover the general problem of the 
world economic situation, world 
trade and the north-south dia- 
logue for international economic 

. Mr. Fraser said the world faced 
significant economic problems. 

^^ tivTndershmdin® JSStJ, a bE0 ®* “P* 01 ** to have k Jwy role in that there would be an advantage 
-Jr* reached recently the . economic summit, being in their meeting before Mr. 

■\ v.> ‘to -store entering into Important 
iscusstons with a third party or 
e ’ international organisation... 

\ w ‘ -‘ l:.-- c A senior Australian Govern- 
•. ^ty-ient source said to-day that Mr. 
^ fraser had suggested the talks 

Duty up on wood screws 


CANBERRA, April 4. 

J *&^3SSmKS S> £*?SdK ahstrama is Me « ■ w- My n „ ? = 

community. . . tial duly arrangements. organisation and product Tation- 

The Government source said v alisation 

hat given the pressure on the . Hon 8 fi* The Government has also an- 

i men can dollar and current excludedfrom thedevelop- nounced tariff on imports 

prospects for the GATT multi- In *» countries because their W00 | i^ Drs ^ ef j yarns and wool 
feral trade negotiations, esepom of wrodjwrew wmre blenfl backdated to March 

pNCTAD and the economic found by the- Govermneat^s texn- j annual quota for these 

ummlt— to name only some of yarns has been set at 1.1m. Mlo. 

,he factors— “there could be ln „f^^ t L durup " grammes with additional duty of 

reater protectionism with fiercer uoa o! locai industry. SAli.SO a feiloCTamme payable for 

tries, which will retain preferen- 

compiete a programme of re- 
organisation and product Tation- 

»l Ail? r—,—.. .T m - ■ -J j:.nm J'"*** OHS uecu SCI >1E J..XU1. JUIO- 

--- ,j i y v h e factors— “there could be with additional duty of 

^ reafer protectionism with fiercer uoa of the local industry. SAli.SO a fcilogramme payable for 

: lj ~ : <y.t>m petition for shrinking mar- A Government announcement above-quota imports. 

:: — 

g^Xlhinese Minister in W. Germany 

AN INCREASE. in the common 
European tariff on automobiles 
has been informally discussed 
among European vehicle manu- 
facturers and within producer 
associations, according to a new 
study of Jupanoso-European trade 

The tariff, which would affect 
ail cars coming into the Com- 
munity from other trading areas, 
would be designed to give the 
European industry a chance to 
form stronger and larger units 
behind restrictive walls. 

“European manufacturers are 
aware that requesting a raise in 
tariffs would constitute a 
departure from past policies but 
some of them are in favour of 
organising international trade on 
a new basis," the report says. 

The study, prepared by the 
Batelle Geneva Research Centre 
for a group of leading Japanese 
academics, adds that the likeli- 
hood of such a proposal being 
adopted seems extremely low. 

That is because of technical 
obstacles in instituting such a 
duty — such as the degree of the 
increase, the difficulty of making 
the tariffs non-discri minatory, 
and the problems of restructuring 
within Europe — as well as wider 
issues such as the general Euro- 
pean commitment to lower 

The report concludes that a 
belter course would be to adopt 

the objective of eliminating non- 
tariff barrier? and an attempt to 
equalise competitive conditions 
for foreign manufacturers. 

Japan would then have to 
prove that it was taking definite 
steps towards equalisation. 

It goes on to propose that the 
Japanese pursue more actively 
the recently adopted policy of 
“proving that Japan is an open 
market,” and increase imports of 
European products. 

On the European side, the 
report says that governments 
may attempt to rationalise the 
industry by promoting trans- 
national mergers, and European 
companies seek to step up their 
sales in Japan. 

It argues that adopting Euro- 
pean cars to Japanese conditions 
ought to be investigated in more 
detail, and that that might be 
done jointly or individually by 
European companies. 

The report coincided with an 
article in a West German news- 
paper yesterday in which Mr. 
Seisi Kaio. president of Toyota 
Motor, said that Japanese motor 
companies want more foreign 
manufacturers to compete with 
them in Japan. 

National and international 
competition contribute to the 
health of the industry worldwide, 
he said in an article in the 
Frankfurter AHgfcnufine news- 


TEMPTED BY continued high 
growth in the world's second 
largest market for data process- 
ing equipment, the American 
company Honeywell has decided 
to take an SO per cent stake in 
a new joint venture with 
Mitsubishi io market Honeywell 
systems in Japan. 

The company announced in 
Tokyo and Minneapolis to-day 
that the two have signed 
a “memorandum of intent” 
towards setting up the new com- 
pany. to be called Mitsubishi 
subject to final negotia- 
tions and approval by the 
Japanese Government (which 
screens all incoming invest- 

Honeywell Information 

Systems (ILLS.) in Tokyo said 
it expected the procedures to 
take about 120 days. It hoped 

the new company could get off 
the ground in July. 

Honeywell thus becomes the 
last of the main U.S. data pro- 
cessing companies to take a 
capital stake in the Japanese 
computer market. Mitsubishi 

HXS. would be initially 
capitalised at Yhbn., 80 per cent, 
from Honeywell, 20 per cent, 
from Mitsubishi Office Machines 
(MOM), sole sales agent for 
Honeywell computers- in Japan. 

By contrast, IBM Japan is a 
wholly owned subsidiary of IBM 
and is the largest single com- 
pany in the Japanese industry 
(with sales "in 1977 just over 
$l.bnA. NCR Japan is a 100 
per cent, subsidiary of the 
American company, and the 
Univac division of Sperry Rand 
has a 34.7 per cent, stake in 
Nippon Univac. which builds 
computers in Japan. 

MC 38 

More recent entries include 
Control Data Corporation (CDC) 
and Burroughs. CDC has been 
in Japan since 1973 but in 1976 
bought out its joint-venture 
partner, C. Iloh and Co., and 
now operates two wholly-owned 

subsidiaries in Japan. 

Honeywell .gave no indication 
to-day of future expansion plans 
in Japan, but industry experts 
reckon the company will have to 

TOKYO, April 4. 

go into producing software here 
to compete effectively for the 
specialised Japanese data pro- 
cessing market with other com- 
panies building hardware and 
software on the spot. 

Honeywell has relied on MOM 
to sell its equipment in Japan 
in competition with computer 
systems built by Toshiba and 
Nippon Electric (NEC) on the 
basis of licensing arrangements 

with Honeywell. The prolifera- 
tion of agreements was one side- 
effect of Honeywell's acquisition 
in 1970 of the computer division 
of General Eletfrlc (GEL Pre- 
viously. GE technology was 
licensed to Toshiba and Honey- 
well technology to NEC. 

Honeywell’s full-seale entry 
into the Japanese market may 
help to increase the proportion 
of sales by foreign companies to 
half or more of tbe Japanese 
market. In mid-1977. the value 
of all-purpose computers opera- 
ting in Japan was Y2.500bn. 
(about SlObn.) and foreign 
manufacturers had taken 42.5 per 
cent of the market. 

India takes up two Airbus options 

JL ▼ AUUU A/’W'JL . XU V V • V/X. XUU11J 

^ ..... 

..V* 11 **- U BY ADRIAN DICKS BONN, April 4. 

- ••• -.t. : n* 

■" i\ icy. i~ T^HE CHINESE foreign trade- West ' Germany ' is China's equipment have not so far been 

W j' ^niaister, Mr. Id Chiang, is spend- largest single trading partner substantiated, beyond the now 

a week “ West Germany as among the nine, with a two-way lately completed deal, for a 

-.i^be guest of Count Otto v _ Tn Jf- hf *>„* ‘raH-hed s’*® 1 complex with rolling and 

• -V -v"l?-*ambsdorff, the .West German voIara e continuous casting facilities at 

~ , - u ~ Minister of Economics,, in the so?*c DMl-Sbn. in 1977. Beianse Wuhan. Recent Chinese trade 
. - .- course of which he is 'to visit '•*“** ** at present sput almost delegations to West Germany 

'■- V '~ z r Several- industrial plants in exactly two:to-pne-HL Germany s however, included experts 

... s^iifferent parts of the country. - .« v pur, Mt Li is kno wn to oe j n the coal, electricity generating 

V Mr, Li's visit, reciprocating the an f electrical engineering 

shat paid by Herr Hans 2?«*“ e 3““® ***”"* t0 industries. 

" fle^ridericbs to C^ina in 1975, is Bepuhkc. At preseoL During his stay here Mr. Li is 

• ■' first to West ^Germany by a the ? e meeting Chancellor Helmut 

- --f.; -? : rea Chinese cabinet minister, n Agricultural prod uct , sundry Schmidt and the" Foreign 

r 'follows his signature in Brussels materials and textiles. Minister, Herr Hans-Dietrich 

' ' r ■ -"'i.-.vesterday of China’s first five- On the Gennan side, periodic Genscher, in addition to his con- 

; ' - - >ci£.7ear trade agreement, with, the rumours of i^or contracts for tacts with business and economic 

r ' ’ : Suropean.. Community. ’ industrial installations and officials. 

German dam contender 


BROWN BOVERVS West Got- lionally high dam. the highest 
man subsidiary is offering a contemplated for Brazil. 

S2bn. package to finance con- • Occidental Petroleum, one of 
6t ruction of a new Brazilian two big UB. oil companies operat- 
hydroelectric scheme. ing in Peru. ba$ signed two 

The Xingo hydroelectric pro- agreements with the Stule-ownedi 
ject, delayed through lack of company Fetraperu. One to 
finance, is on the Sao Francisco exploit heavy oil in the northern 1 
river in the north-east, Amazonian jungle, the other for 

„ . . . . secondary recovery operations in 

Brown Bovery has backing Taiara area, on the northern 
from a pool q£ German bonks led coast (Reuter reports from 
by the Comiherz Bank. Dresdner Lima). 

Bmik and, Deutsche Bank, plus Armand Hammer, chairman of 
a SSOm.^ fcredit from Germany s Occidental, said on a recent visit 
aid tq, developing countries. here that his company would i 
Tbe Xingo scheme, in a natural spend another $290ra. in Peru i 
gorge, would require an excep-over the next two years. 


{THE DOMESTIC Indian carrier, 
i Indian Airlines, has converted 
two of its options for Airbus 
A-300 aircraft into firm orders, 
bringing its total orders lor the 
European airliner to five. The 
company has another three Air- 
buses on option. 

Counting the latest order. Air- 
bus Industrie bas sold 70 of its 
highly successful wide-bodied 
aircraft and has 37 further 

Two days ago, the Franco- 
German - Spanish consortium 
received another big boost when 
it reached agreement with the 
operators of New York’s La 
Guardia Airport to enable the 
A-300 to use the airport from 
November 15 . 

The agreement removed one of 
the last obstacles to the proposed 
$SO0m. sale of 23 A-300s to 
Eastern Airlines, which has been 
leasing four of the type since 
December last year. Only an 
agreement between the U.S. com- 

pany and its lenders now stands 
in the way of a firm contract. 

Last month M. Marcel Cavaill£, 
the French Transport Minister, 
said the aircraft offered “sure 
prospects ” of selling more than 

• British Aerospace, the nat- 
ionalised aircraft manufacturer, 
has won another export order 
for tbe Hawk jet trainer and 
light combat aircraft — this time 
from Indonesia for eight air- 
craft. worth about £25m n 
Michael Donne. Aerospace Cor- 
respondent, reports. 

That follows the signing late 
last year of the £l00m. order 
for 50 Hawks for Finland, a 
deal wbich is subject to the 
UJv.’s buying a comparable 
volume of goods from Finland 
or helping Finland to sell its 
goods elsewhere. 

The order from Indonesia 
covers aircraft Rolls-Royce- 
Turbomeca Adour engines, 
spares, and training of pilots and 

PARIS, April 4. 

engineers. It » understood that 
no offsets are involved. It is 
regarded by British Aerospace 
as an important breakthrough 
into the South-east Asian market, 
where further orders for Hawks 
are being sought 

• As part of the buy-hack agree- 
ment under which Finland 
bought its Hawks, the United 
Baltic Corporation of London has 
ordered a 7,200 tou Ro-Ro ship 
from the Finnish shipbuilders 
Rauma-Repola. Lome Barling 
writes. The value of the contract 
Ls understood to be about £&5m- 
and a similar order is expected 
from UBC’s associate, Polish 
Ocean Lines, in the near future. 

• A £4m. order from Hawaiian 
Air. Hawaii's biggest airline, has 
been received by Short Brothers, 
the Belfast aircraft manufac- 
turer. for three SD-330 aircraft 
for delivery late this year and 
early next Hawaiian air is the 
seventh, and largest, airline to 
buy the SD330 for scheduled 

4VV"'- - '• 

Swedes cut pulp excess TV centre 


IXCESS PULP stocks in' Sweden, the period tost year. ' however. TAr Vjj || fllC 
Ho -rorinr-Mi hv 225.000 Drices were still low and &pply k-Jtl. 


; "irJXCESS PULP stocks in Sweden. 

lave been, reduced by. 225,000 
:: -t:: cranes or almost half in the first. 
: -Three months of 1978,’ it was 
Lisclosed yesterday. 

. Mr. Bo . Wergens, managing 
Urector of the Swedish: Pulp and 
aper Association, . said- he ex-, 
ted inventories to be reduced 
normal levels within a few 
onths. At the beginning of last 
ear pulp manufacturers ; - had 
cess stocks of ^about lm. tonnes 
s a result of failing to. cut back - 
reduction during the recession 

Mr. Wergens was commenting 
m the annual statement from the, 
Swedish Pulp and Paper industry 
g : :or 1977. • ■ 

Mr. Wergens suggested that- 
rices might ■ improve this year 
rirough increased consumption 
nd product! on. of paper. ■ and 
Taper hoard im the TFB.-.and 

estern Europe. 

Swedish shipments to the iu-r 
emational pulp market rose 10 
er cent, in- the fijst three 
onths of 1978 compared with 

.the period last year.' However, 
prices were still low and »pply 
will in future have to be. wtter 
adjusted to demand. ThatXMr. 
Wergens said, would meafrihat 
in Sweden and other producing 
countries the , operating' ratio of 
the industry. .would lave, to be 
held below capacity' in most 
grades. _ 

The Swedish Pulp and Paper 
Association report shows that the 
country’s paper and "board pro- 
duction increased 6y about ZB I 
per cent, to 5 Am. tonnes in 1977. , 
Total capacity ip, the industry 
is. estimated at 6.3m- tonnes. 
Mills were operating at an aver- 
age of 73 per cent, of capacity, 
during the year. 

The Swedish' market for the 
paper ‘and hoard stagnated while 
exports rose by *4_P«f 
3.7m. - tonnes. Exports to the 
EEC rose -by 5 per cent and 
shipments of paper and board to 
the UJK. rose from 760,000 wues 
in 1976 ta 810,000 tonnes m 1977. 

Palp exports rose 6 per cent 
to 3.3 mr tonnes but prices fell 


The Book of Records 

/, \ 

fsmmxo&m J 

Vice President Hnancc, 

Emhart Ccwp^ P.O. Box 2730, * 
Hanford, CT 06101 I 


■ ; ‘record performance in revenues, 
net eaniinqs am! earnings per share'' 
£ ■■/"earnings from operuiions improved 
if 26“'- on an S '-,, revenue rise'' 

A contract worth Riyals 2.2ba 
(SU^:600m.) was • signed on 
Monday between the.. Saudi 
Ministry of Information and 
Dyckerhofl U. Wldman' • of 
Munich to build a complete new 
television complex in Riyadh, 
James Buchan writes from 

The contract calls for building 
and furnishing a 200,000 square 
metre complex, with a 170-foot 
transmission mast, news film 
and video production studios, 
control rooms, film processing 
labs and the station’s own power 

Saudi Arabia wishes to im- 
prove coverage of Saudi affairs 
abroad by increasing locally 
generated material. 

Textile watchdogs 

Finland, India, South Korea and 
Thailand have been named to 
serve, this year alongside the 
EEC, United States. Japan and 
Colombia on an international 
"watchdog body supervising world 
trade In textiles, Reuter reports 
froip. Geneva. The GATT Tex- 
tiles Committee approved the 
appointments to the Textile Sur- 
veillance Body, chaired by Mr. 
Paul Wurth, of Switzerland. 

$ 600 m. refinery plan 

Two Fluor Corporation subsi- 
diaries have received contracts 
worth more than $60 0m. to up- 
grade Venezuela’s Amuay 
Refinery from Fetroleos de 
Venezuela’s Lagoven subsidiary, 
Reuter reports from Irvine, 
California. The project will pro- 
vide the flexibility necessary to 
cope with fluctuations in the 
residual fuels-market 

• ■ v v ,i r. V-.^ 

7 t *' v Vv '• 

Jj 'V- ,:ri . V - :> 

; •* ' < ■ <: » k ^ ' . .* ;t. ^ ! ■ j ■» ; ■ 



£67 to Chicago 

"Yes, an electric tmck will 
' v cost more to buy than a 
diesel orejas truck. But what 
• will they be : cos ling in five or 
. temiears time —you with 

the ruiming costs and me 
with my bad chest? 

'’Listen — an electric truck 
comes with most of its fuel 

DailyWdepartfngatl 230 . 

Callybur travel agent and ask about TWA’s 
new Standby fare. (Tins fare is subject toaseasonal 
increase from July 1st) ' ' . 

* • TWAoirries mure Bdvedriedpa a sea j{^ BCf 08 8 moMonl la than gr 





and the night tyre-charge is 
c hea p . I is voi ir 1 tedge aga i nst 
hie) in nation for 5 years. And 
as y( tar cost experts wi \ i tell you . 
electrics cost less to maintain, 
live longer, and have a higher 
traue-m \ alue than engine trucks. 

"And what about he blokes who work 
for you? Think what an investment 
.an electric truck is torus. Yn noise. 

. no noxious fumes. Pius a Chloride 
engineer on cal I to look ahorihe 
' batteries. Come on, boss. Pay now 
and well ail live later! \our trucks, 
v ... your money and us!" 

Chloride Industrial Batteries Limited 
P.O.Box 5, Clifton Junction 
Swinton, Manchester \T27 2J.R 
"’x Telephone: 061-7944611 

A Telex: 669087 




Deputy Secretary 
for Monetary Affairs 

Hong Kong 

£15^000 p.a. 

• 23% gratuity on salary 

• Low tax area 

• Free medical treatment 

i Generous terminal leave 
i Subsidised accommodation 
l Education allowances 
I Holiday visits for children 

The Hong Kong Government invites 
, applications for the post of Deputy Secre- 
ogfc tary for Monetary Affairs. The successful 
candidate will be responsible to the Secre- 
5 )i tary for Monetary Affairs for: (al adminis- 
Brar tprins the Monetary. Foreion F.vr.hnnm* and. 

taring the Monetary, Foreign Exchange and 
Banking Division; (b) formulating and 
executing policies on monetary affairs, 
including _ foreign exchange and other 
financial (including, gold) markets, banking 
and other financial institutions, and keeping 
such policies under regular review; (cj 
providing technical advice; and (d) any 
related duties as may be required. 

and its implementation; financial markets, 
particularly for foreign exchange; banking 
and other financial instit ut i on s; fr|t^r rta fr’ riT ”' 
financial organisations; organisation and 
administration at a senior level; and (c) 
technical knowledge and ability to analyse 
and evaluate monetary and other financial 
developments domestically and inter* 

The appointment will be for an initial period 
of 2 b years. The salary for the post is 
HK 5 14.300 per month (approximately 
^19,000 p.a.*). 

Applicants should preferably be under 48 
years of age and must have (a) good general 
education, preferably with a degree from a 
Hong Kong or British university or an 
appropriate recognised professional qualifi- 
cation or equivalent; (b) substantial post- 
qualification __ experience, preferably in a 
central banking organisation, in more than 
one of the following fields: monetary policy 

For further information and an application 
form, telephone 01-499 982 r ext. 41 or 
write to the Hong Kong Government Office. 
t> G ration Street, London WrX jLB, 
quoting reference GS/DSMA at the top of 
your letter. Closing date for return of 
application forms: 21st April, 1978. 

* Bused on exchange rate HKS 9.00 = £1.00. 
Tliis rate is subject to fluctuation. 

Hong Kong Government 

Our Companies 

both belonging to the Italian State Group EF/M, are the leading 
Italian producers of about 260,000 tons of primary aluminium 
annually, particularly billets and proper?! rods, with a total of 3 
smelters on the Continent plus I smelter in Sardinia. For the 
purpose of penetrating the U.K. market we are now seeking a 
suitable candidate to act as our agents in the U.K. and invite 
the interested parties to submit their applications with full details 
of their activities in writing to: 


Attention Mr. G. Gable 

Via Alserio, 2L— 20159 MILANO (Italy) 


Savrle Row. W.l. 01-439 6686. TONY 
TURNER— Surrealist Works and EUAN 
DUFF — Photos rap ns of Places and Plans. 

DUFF — photos rap ns of Places and Plans. 
Until 29 April. Mon-Fri. 10-5.30; 
Sals. 10.12.30. 

AGNEW GALLERIES, 43. Old Bond St.. I 
W.l. 629 6176. THREE CENTURIES 
OF BRITISH PAINTINGS. Until 28 April. 1 
Mon.-Fri. 9.30-5.30. Thors, until 7. 

499 5058. TISSOT— Forty 
dints and mezzotints. Ui 

COLNAGHI. 14. Old Bond St„ W.l. 
01-491 7408. INDIAN PAINTING — 
Mughal and Ralput 1500-1850. Until 
3 May. Mon.-Frl. 9 J0-5. SO. Sate. 10-1. 

Kensington Sq.. W.8. 01-937 5583. 

DAVID MCCLURE until 21 April. 


negit s.a. 

Soclgte Anonyme 
10A, Boulevard Royal 
R.C. Luxembourg B 8.849 


Notice is hereby given that, pursuant to a resolution of the 
Annual General ' Meeting of Shareholders of NEGIT S.A. 'in 
31st March, 1978 payment of USS 0.11 per share will be made 
to shareholders registered on 14th March, 1978. 

Dividend cheques will be mailed to registered shareholders. 

The Faying Agent 
Banque de Paris et des Pays-Bas 
pour le Grand-Duche de Luxembourg 

Luxembourg, 22nd March, 1978. 

i Incorporated In The Netherianoi with 
limited liability! 

Shareholders are herewith Inyllcd Oo 
which will he held on Thursday. 2701 
April. 1978. at 15.00 hours at 

(Incorporated in Canada} 

VIJzoistrait 6B-78. Amslerdam. 

Thu Aaenda of the Meeting, the Annual 

Report 1377 and BteReportol the jauro; 
holders committee have teen deposited 
lor Inspection and are available at the 

Offices mentioned below. .. 

Shareholders may attend the Meeting 

The Ninety-seventh Annual General 
Meeting ol the Shareholders of this 
Company, lor the election or directors 
to take the places of the retiring direc- 

tors and lor the transaction ol ouslmss 
generally, will be held on Wednesday, 
the 3rd day el May next. at Le Chiteau 
Champlain, Place du Canada. Montreal, 
at eleven a.m. (daylight saving time. 
II operative). 

either In person or by i»w. i Egress ttm 
Meeting, and vote, provided their shares 
have b««> deposited by Monday, zatft 
April. 1978. in England at the offices ol: 
Baring Brothers & Co., Limited, 

88 Leedenhali Street. 

London. EC3A 3DT 

J*e transfer books at shares and stocks 
will be closed at the close ol business 
on Tuesday, the 25th day of April. 1978. 
and will oh reopened on Thursday, the 
4th day ol May. 1978. 

Tbo Board ot Directors has specified 
that the time before which a shareholder 
Intending to vote by proxy at the Annual 
General Mooting or any adjournment 
thereof must deposit his proxy with the 
office ol the Secretary ol tho Company 
at Montreal. Que.. shall be Rvo P-m. 
■daylight saving time. II operative} Mon- 
day. May 1st. 1978. 

By Order of Hit Board. 

J. C. AMES. Secretary. 

Montreal. March 13th. 1978. 

Algemcne Bank Nederland N.V.. 
61. Thread need It- Street. 

London. EC2P 2HH 

Aigemene Bank Nederland N.V.. 

61, King Street. 

Manchester M2 4 BO. ao1ng aQm 
Amsterdam. 5th April 197B. 


Advice has teon received Irom Tokyo 
that the Boart of Directors have declared 
a payment of Dividend of Yen 3.7s Par 
share lor six months period ended a 1 *t 
December. 1977. 

Holders ol European Depositary Receipts 
to Bearer (Share EDRs) wishing to claim 
this dividend In respect ol the shares 
represented by their share EDRs Should 


(Incorporated with limited liability in 
South Afrlea> 

ICRf COCHtUU or M'LTI n- kwrer 

present Coupon No. 30 at the 
Hill Samuel & Co. Limited. 45. Beech 
Street London EC2P 2 LX. where listing 
forms are available. „ , 

Coupons must be presonted by an 
Authorised Depositary and must be left 
(our Clear days (or axanillWtlon. 

Payment Will he made In sterling at 


Notice is hereby given that the eighty- 
second annual general meeting ol members 
will be hold in (ho board room. 24th Floor. 
45 Commissioner Street. Johannesburg, 
on Wednesday. 26 April. 1978. at 10 a.m. 

on Wednesday. 26 April. 1978. at 10 a.m. 
lor t*e teil«»»iiig piur-wi-s: 

flic or ™«iivr . ui...* .... — - l 

ol presentation, except In the ease of 
non-residents ol the Scheduled Territories 

nwriOiUQIlU «l MW 

who. to obtain payment In Yen must 
(allow the procedure laid down In the 

Ib j!!panes7' Withholding i Tax _at the rate 
ol ZO“i will be deducted from the 
proceeds ol the dividend, except In 
the case of holders resident in the 
following countries — 





Federal Republic of Germany 



liTo present the annual financial state* 

ber. 1 977.” ■*' ! 

2. To elect a director. „ ^ 

3. To ftx tho remuneration of the 1 
auditors lor the past audit. _ 

4. To renew. In accordance with Section 
221 of the Companies Act. 1973. the 
authority printed to the directors to. 

authority printed to the directors to. 
allot and Issue 990.000 (nine hundred 
and ninety thousand.) ol the 4 930 ono 
(four million nlna hundred and thirty 
thousand) snares of 25 cents each 

Malaysia (The Nederlands) 

New Zealand 

Pakistan (excluding Bangladesh) 



Switzerland. _ 

United Arab Republic 
United Kingdom 
United States of America. 

To obtain payment under, deduction or 
Withholding Tax at the reduced- rate of 
15ifc. residents of the above coon tries 
must furnish a declaration of residence 
as required by the Japanese Ministry Of 

thousand) shares of 25 cents each 
In the capital ol the company, at 1 
present held In reserve. 

5. To transact such other business as 
may be transacted at an annual 
general meeting. 

For tna purpose ol determining those 
members entitled to attend ahd vole at 
the aforementioned meeting, the transfer 
books and register ol members will be 
closed from 20 to 26 April. 1978. both 
days Inclusive. 

Members unable to be present at. the 
meeting are requested to complete, a form 
of proxy which must be deposited at 

either the Johannesburg or London offices 
ol the company at the addresses given 
below, together wKb any power or attorney 
or other authority under which It Is com- 

as required by the Japanese Ministry Of 
Finance. The declaration must be given 
by an Authorised Depositary, and In 
respect of holders resident In the United 
Kingdom b Incorporated In the listing 

For residents of all other countries a 
separate declaration must be tarnKhod. 
giving, tte name and address of tho bene- 
ficial owner, the number and definitive 
numbers of EDRs held, and attesting that 
he Is entitled to the 5% Tax Relief 
pursuant to the Tax Convention between | 
japan and the country concerned. 

Share EDR holders resident in the 
Republic of Korea will receive payment 
under deduction of Withholding Tax at , 
the reduced rate or 12 ^ and residents 
of Zambia without any deduction subject 
to tho provision of a declaration as set 
out above. 

Attention Is drawn to the fact that 
the above mentioned concessions relating 
to Japanese Withholding Tax apply on>y 
ta coupons presented tor payment within 
5 months of. the due -dale. Thereafter 
tax will be. deduct ad at (he full rate of 
201n - and It will bg the responsibility 
of Die owner to claim irom the Japanese 
Tax Authorities anv relund to which he 
Is entitled. . J 

United Kingdom Income. Tax at the 
appropriate rate will be deducted from 
the proceeds unless ttw Coupons are 
accompanied by a united Kingdom 
Affidavit of Non- residence. 

Fu.i information mar br obtained from 
Hill Samuel A Co. Limited 


45. Beech Street. 

London EC2P 2 lx. 

plotM, not less than forty-eight hours' 
before tM time Axed for the meeting. 
Any member of the company Is entitled 

to appoint a proxy or proxies to attend 

and speak and, on a poll, to vole in his 
stead. A proxy representing a corpora- 

tion may also vote as a proxy on a show i 
of hands unless such proxy Is a member' 

and is voting in his own right. A proxy 
need not be a member of the company. 
. Homer* of snare warrants to bearer, 
desiring to be present or reprasonted at 
the meeting, mast produce their share 
warrants at am places and wftaln the 
tlmeo mentioned below: 
a) Al the registered office Ol tha company. 
45 Commissioner street. Johannes- 
burg, at least forty-eight hours before 
„ Ute time fixed tor the meeting. 

• A* tho company's London offico. 3rd 
Floor. 29130 St. James's Street. Lon- 
den 5W1A 1HB. at tout kiteon days 
... the date fixed for the meeting. 

(O At tho office of Paris agents Of 
Credit du Nona et 
Union Pvbtanne Union Bantalre. 6-8 
Boulevard Haissmann. Pari* 75-9. 
#* iMg Altecn days before the date 
fixed for the meeting. 

„_rm ll l^i of share, warrants to Bearer 
fo p roduce chare warrants may In 
!■£“ tiwreai Jpuge at tho comnanv’i London 
252LJ ««twfoft« stating their respotclve 

holdings, b* the holder and 

by the authorised depositary. 

..ST order e! the Beard. 


Ben j. A- F. WHITE. 

31 March. 1978. 

With effect from 1st February 1978 
Mr. Gordon J. Madde 

base bean appointed 
Marketing Manager of 


with responsIbHIte for tha U.K— 
Australia, New 2eaLmd. South Africa 
and the Far East. Previously Mr. 
Mackie had been located in the 
Vesuvius International Corporation 
Office in Brussels. 

With effect from Art March 

Mr. Alan J. Hill 
i appointed Seles Dfn 

FOX GALLERY. Exhibition of the paint- 
ings by British and Eurooean Artists 
from 1700-1965. 5-6. Cone Street. 

, London, W.l. Tel. 01-734 2626. 

Weekdays 10-B. Sat. 10-1. 

J. P. L. FINE ART, 24. Davies St.. W.l. 
01-493 2630. LEG ER— Dra wings and 
Gouaches 1910-1953. Until 28 April. 
Weekdays 10-6. 

Ins been appointed Sales Director of 

with responsibility for the UK. 
Australia. New Zealand, South Africa 
and the Far East. 

Mr. Hill wu formerly General Sales 
Manager with A. P. Green Refractories 

Davies SU W.l. 1 

a etchings, dry- ; 
mil 21 April. ! 

PARKIN GALLERY. 11, Motcomb 51.., 
London. S.W.1. 235 B144. Walter Baves 1 
1869-1956. A Camden Town Painter. . 
Until 9th April. 


St.. W.l. Modern paintings, sculptures 

and graphics by Interesting International 
artists. Wide range ol prices. Tucs.- 
Frl. 10.00-5.00. Sats. 10.00-1.00. 

EVE. 189 Regent Stret 734 0557. A la 
carte or Afl-in Menu. Three Spectacular 
Floor Shows 10.45. 12.45 and 1.45 and 
music of Johnny Hawkeawortb & Friends. 

GARGOYLE. 69 Dean Street. London. W.l, 

grove. N.WJ9. ART IN RELIGION. 1 

Show at Midnight and 1 a-r.. 
Mcm.-Fri. Closed Saturdays. OT-437 64SS. 


Sodete I ntereom unmade Beige de Gaa 
at d'Electricite Socle le Anonyme 
Plan da Trone 1, Brunei i. Belgium 


Notice Is hereby given that an 
Extraordinary General Meeting of the 
Shareholders will be held on Monday. 
10th April. 1978. at 11.30 ami. at 
the registered office. Place du Trone 1. 
Brussels. Belgium. 


1 — a) Increase of the capital by 
Belgian Francs 4.603,128.000 so as 
to bring it from BF 22,771 .455.300 
to BF 27.374.583.300 by creating 
and. Issuing 3.422.400 shares of no 
par value of the same kind and with 
the same rights and advantages as 
the existing 16.932.000 shares, except 
that they will participate In profit 
Sharing as from May 1st. 1978. 

Those 3.422.400 new shares will 
be Issued at BF 1.345 each, pips a 
premium ta be fixed by the .meeting 
at such amount that the Issuing, price 
does not exceed BF 1.800. 

They will be offered In public sub- 
scription for cash in the proportion 

—3,386.400 shares to owners of the 
16.932.000 existing shares wlro will 
be entitled to subscribe by preference 
and as ol right on Iwreabove condi- 
tions In the proportion of one new 
Share for every Eve old shares, without 
delivery ot fractions: 

— 30.000 shares ta members of staff 
who will be entitled to subscribe. on 

heraabave conditions and according 
■ ta the terms fixed by the Board of 

Shares which would not have been 
subscribed for by members of staff 
wfH be offered in subscription to 
buyers ol scrip certificates representing 

corresponding subscription rights which 
will be sold on behalf of the Issuing 
company on Brussels. Antwerp end 
Luxembourg Stock Exchanges, at tbo 
same time as non exercised preference 
rights related to old shares. 

The subscription price of the 
3.422.400 new shares will have to 
be fully paid up on the subscription. 

b) Allocation qf the premium 
resulting from the issuing price to 
the payment of part or all Issuing 
costs, and tor the rest ol amr, to the 
unavailable reserve which will be the 
guarantee for third oersons. as well 
as the other contributions, and can 
only be reduced or cancelled bv deci- 

sion of Extraordinary General Meeting 
on required conditions for alteration 
of Articles of Association. 

2 — Modifications in Articles of 
Association, so as to bring Article 5 
In accordance with the resolution IB 
be taken by the meeting on Item 1 
of this Agenda. 

■Delegation of powers to the 
Board of Directors, so as to enable 
them to execute the raolutions taken 
by the meeting. 


Holders of share warrants entitled 
and wishing to attend or be represented 
at the meeting should deposit a certi- 
ficate of their holding from an 
authorised depositary at least six days 
before the day fixed for the meeting 
at the: 

— Midland Bank Limited. Overseas 
Branch. P.O. Box 181. 60. Gracechurch 
Street. London. E-C-3. 

—Banque do Paris ot des Pays-Bas. 
SA. Moorhouse. 119, London Wall. 
London. E.CJ2. 

— Banque Beige Limited. 16. SL 
Helen's Place. London. E.CJ. 

— Baring Brothers and Co. Limited. 
86. Lcadenhall Street- London, E-C-3. 
— Hill. Samuel and Co. Limited. 10O. 
Wood Street. London. E.CJL 
Thereupon an admission card will be 

A membe r of the company entitled 
to attend and vote may aooolnt a proxy 
or premies to attend, and on a poll 
to vote. In his stead. 

Such , proxy must bo a member. 
The full agenda In French together 


Finanrial. .limes Wednesday April 5 197* 


hit 10-year low 

orders , House prices ty f Of 


THE AMOUNT of over-capacity 
in the world's shipbuilding 
industry is “ frightening, " Mr. 
Robert Huskisson, chairman of 
Lloyd's Register of Shipping, 
says in its annual report pub- 
lished yesterday. 

By the end of 1977 the world 
shipbuilding order book stood at 
its lowest for more than ten 
years. In four years tbe annual 
world-wide order book has fallen 
from 73.6m. gross tons in 1973 
to 11.09m. gross tons in 1977. 

The future looks gloomy. Last 
year Mr. Huskisson had pre- 
dicted more s tability in the 
market by 19&0, now he says 
this is still a possibility, "but 
only a remote possibility.’' 

The report shows Britain fifth 
in the list of shipbuilding 
nations last year, taking 4 per 


5% this year 
says Natiomvic 

mu asms 

8SWITB -v 


I mo *s5 

a*r-cjnii (mvw 

specialised ships. v 

so worid a ?u l ,tanSS* S1 Sij| Sf. BY M,CHAEL c*steL-aua»uis correspondent 

Huskisson said shipping remains • 

70 a long-term growth industry. In EVIDENCE THAT house prices third largest building so 
1977 the fleet classed by Lloyd's were beginning to accelerate now lending about £ 

60 Register increased by 6.5m. gross more - rapidly at the start of month. Of that figuze ■ 
tons to a record U4jtm. gross 1978 than at any time since the going on ordinary hoc 
50 tons. last price explosxtion five years chase and is therefore 

• Figures released by the ^ came from the Nationwide to the Government’s 10 1 ■ 

40 ' General Council of British Building Society yesterday. cut in lending levels, 

Shipping to-day show that According to the Nationwide, 

M between January 31 and average house Prices rose by Intervention 

February 28 this year (he total 5 per cent in the first three r 

o n world tonnage laid up rose by months of this year against an without tins intervene - ' 
2Bm- deadweight tons. The average of only 1 per cent in £*®“ on y na ?. wonld ncr 
I 48,453,000 deadweight tons, 8 per the previous quarter. During P®® n Ien djng about £ ! 

10 cent, of the fleet, was made up last year as a whole, they in- purchasers in the 

i „ of 391 dry cargo ships ahd 335" creased by an average of about wa /* pi “? another f. 

7 ° tankers. - S per cent. ' borrowers or i/ 

The figure for the laid-up dry The average rate of increase -fiw 

cargo fleet 12.384^)00 deadweight seems, however, to have been au ™° n ty mortgages. 

last year, taking 4 per The tanker problem remains tons, is the worst yet and r% ? n generally lower than was being Prices rises would 4 
cent (slightly under 450,000 the most severe with 350 ships be compared to the 5,527,000 suggested when the Government Mr - ‘Williams emphasise 
gross tons) of the total 11,091.103 laid up. deliveries still being deadweight tons for the end of stepped in to call for a reduction was hoped, at a lower i 

gross tons ordered. Japan had made and thousands of millions February. 1977. in mortgage lauding in an ^ the first quarter of ■ 

52.1 per cent^, with South Korea, of pounds outstanding on mort- The UJC. tanker tonnage laid attempt to prevent prices from The Nationwide statis 
Norway and Sweden the others gages. np rose from the January figure rising too rapidly. that the average 5 p 

ahead of Britain. Order books are now so thin of 2,002.000 deadweight tOHs, 18 The Nationwide figures, how- increase recorded dm 

Mr. Huskisson does not consi- that capacity may have to be ships, to 2,041,000 deadweight ever, conceal some marked fr* 1 Quarter was exceed 
der hopes that a vigorous scrapp- reduced by up to 50 per cent tons, 20 ships. regional price increases, calcu- cent) in London, the V 

ing policy would solve the prob- The “ knock-on ” effect is 1 The laid-up dry cargo figure, lated by the Society to have landa and the North 

lem of overcapacity to be justi- already producing oveMonnage fell from 1,285,000 deadweight been as high as 15-20 per cent For the first time si] 
fied, and forecasts that in 1978 In -the dry cargo market as tons. 19 ships, to 14174,000 dead- in some areas. the average annual ini 

the total orders would be for owners switch from tankers to weight tons, 17 ships. The over- Mr. Leonard Williams, chief house prices (11 per a 

about 12m, gross tons — less than bulk carriers and Mr. Huskisson all percentage of the fleet laid general manager of the Nation, slightly higher than 

the productive capacity of Japan said new orders, when they up rose to 7 per cent, or 3,315,000 wide, said last night that there mated Increase in aver 


come, will- be for more and more deadweight tons. 

CBI warning on 
industrial policy 

was now evidence to suggest that togs and in retail pr; 
the market was already '’top- the same period. 

, _ ping; out " in terms of prices and Mr. Williams believet 

A rliriAO IVvv* that rather more properties earnings were likely ti 

rXlX V ICC ll/l were being released on to the about 14 per cent dor 

market in areas where they had He thought it mvint 
/inmnaniAri recently been scarce. average house price- 

LI HII lM Ui CtS The Nationwide, the country’s greatly exceed that figt 

S a L d f!?i Toshiba seeks TV 

ailed legal advice from the CBI 

link-up with Rant 

TaKk M. . . 


. tailed legal advice from the CBI . 

A WARNING that governments policies on industrial mterven- next wee k on the pay policy T| • f • j|_ w 

should not expect their policies tlon. clauses which the Government is llTl iZ'wllTI WItII It OflL 

to have an immediate effect on But the initial idea for the sur- inerting in public sector con- .BmIBwV UI# TT1IU JLVUAIJS 
the development of new indus- vey stemmed partly from concern tracts, writes John Elliott . * ■ ■ 

trial projects was issued yester- that both the last Conservative follows the completion of B v max W1LKMSON 

day by the Confederation of Government and the present talks between the CBI and senior 
British Industry. administration have expected C ivii servants on the drafting of 

This view was based on the companies to bring new invest- clauses, a copy ol which was TOSHIBA, the Japanese electri- restrictions of w the T. 
findings of a survey conducted ment projects into production formally laid in the House of cat giant, is hoping to link up licence for the PA', 

by the CBI which shows that too qoicidy following changes in commons library last week by with Rank Organisation for the system, 

most new industrial projects take political policies. the Government to demonstrate production of its black-a nd-wh ite . A link-up with Raj 

between two and a-faalf ahd four “It has become fashionable In t hat the talks were finished and televiison sets and audio systems however, pave the w. 
years to develop and that some some quarters to criticise the clauses published. hi the U.K wider co-operation 

larger investments may take as British industry for insufficient Members of the CBFs working It has proposed that Rank British set makers and 
long as 19-15 years. Investment,*' says Sir John party of contract experts who should build the Japanese- companies, whose tec. 

“ This points to the conclusion Methven,' CBI director-general, studied the final version yester- designed equipment under resources are now 
that Government policies which in an introduction to the survey, day are still unhappy however licence, to replace the units for- recognised to be supm 
seek to affect investment cannot “ Such criticism is based on because of the complexity and merly imported from Toshiba’s Yesterday, General 
be expected to show full results ignorance of the investment obscurity of some of the drafting, factories in Korea. These imports Company maintained, 
in the short-term." declares the record of British companies." They fear that smaller com- were curtailed by the Govern- silence about reports 
CBI. Consequently, it adds, gov- Developing this theme, the panies without expert legal ment test year. might sell its televisi: 

ernments need to maintain survey says: “Accurate inform a- departments will have difficulty /The arrangement would beta factoring division to T 

stability in policies affecting tion on investment lead times in assessing the business risks to bring more work to Rank's c* x _ , 

industry. . is scarce, yet it is an essential involved in signing contracts con- production lines which, in com- JjSuCS Dflttie 

The Ilniited Ifcpapt ofGovern- ingredient r in the formulation oi taining the clauses. mon with those of most other GEC’s televisional! 

meats' specific industrial assist- policies affecting investment. -Because of this Mr. John UJC.- manufacturers, are operat- failed to.make an aM 

ance .. schemes on investment “Rapid changes in Govern- Greenborough, CBX president, is ing Atwell under full capacity. ~ -for some years. Witfti 
decisions also emerges from the ment policy are consistent with * Q write to member companies Executives from ' Toshiba's 10 ner cent of the hon 

ivestmeht ** Rapid changes in Govern- Greenborough, CBX president, is insert well under full capacity. ' for some years. With; 
from the ment policy are consistent with t0 write to member companies Executives from ' Toshiba’s 10 per cent of the hop 


survey, which says: “The availa- neglect of this factor, leading next wee k explaining that the UJC subsidiary are at present its prospects for rear 
bility of Government assistance Government to believe that a cbi ^ no t recommending the discussing the plan at the cbm- not seemed optimistic.' 

was only one amoag many rele- particular policy has failed, and c i aU ses for acceptance but is puny's headquarters ia Japan. Granada’s rental du - 
vant factors and unlikely to exert therefore introducing further it to individual com- Toshiba has also been interested 0 f GEC’s major costonr 

a decisive influence, especially If policy changes. panies to make their own in the possibility of having its of the rest of its prodor 

there was any uncertainty over The CBI’s survey is based on decisions. His letter will be 2Wncb colour sets manufactured compete with Japan es ~ 
the permanence of measures of postal replies from member accompanied by a detailed under licence In the UJC. in the 40 per cent of tL 
assistance.” companies covering 136 invest memorandum. However, this has not proved available for direct. si : 

tl l e ? BI t0 c . oncln ^® D10 “ t Projects, backed up by -4 He j ukely to spell out possible so far, because of than rental. 

that frequent changes m such case studies. jw the CBI intends to reopen • — « 

Incentives would “ prevent. them _ Investment Lead Times in 2“ of wheSier the * 

Incentives would “ prevent them Investment Lead Times in nuestion of whether the 
having the full effect intended ” British Manufacturing Industry, daures ^e needed, and how 

The survey's results therefore Report of a CBI working party ^ drafted, when the next 
help support toe campaign by plus an appendix of reports on ha J se of ^ pay poijcy is 

leading industrialists concerning individual case studies. £10- 
the need for political parties to CBI, 21, TothiU Street, London, 
refrain from developing new SWI. 

Tootal rationalisation 
will cost 536 jobs 

'Yn phase of the pay policy is 
*““■ debated later in the year. 
aon - The Government’s determina- 
tion to operate the policy was 
demonstrated yesterday when 

Sales slide forces Dec< 
to close Midlands plai 

by James McDonald 

ro 1 "’ t hp C I Treasurv to“ et ?he DECCA - WITH a 7 per cent, output at present- * 

SrSnSSS to 311 are of the UJL- colour tele- around 3,000 weekly: 

d lace^te business abroad rather vision Mt mark ^ ls t0 cl ° se With new nehnoiof. 

n !Hi SSS ? MntnNrJhhont down colour TV section of its toe corner, he added, t 
Sf clauses West Midlands factory at Widen- would riS - 

me Clauses . Hall an«4 tho 9Rn wnrtrpni ema a ...—L 

In a Commons written reply to ^ “ d v the fc 350 workws 5i0 00 units a week, b . 

■ I., “i .. wrmen repoju involved have been given 90 there wau no. sign - ft 

BY ANTHONY MORETON, REGIONAL AFFAIRS EDITOR i, days’ notice. ProductiOB Or audio dSL^rfuS* * t? ’ i 

firm should assume th^ it cmi continue there but greater potential. 

THE DEPRESSED textUe market Sunnyside Spinning is a automatically refuse with un- ^ ^ 3ection ^ ^ largest in „ ‘ enn t ^ 

claimed another victim yester- slightly different case. The fac- pumty to sign toe new contract yjg plant «i^,tre ffa nip aS itJSne ' 

day when Tootal announced that tory was built in toe last clauses relating to pay policy Decca sa id yesterday that the J?® 

it was to shut Its Sunnyside century, and Tootal considers the simply because the only^ com- eight-year-old factory bad been 3®“^’ , a ™jL- 

Spinning factory in Bolton, with cost of keeping it In operation petitor is a foreign firm . making considerable' losses in its ^ZvsSL? '\uS, Sim 

a loss of 346 jobs. too high especially as the five _ . , colour TV section for the past L—a* marcia - 

The company also intends to other spinning units— three in ^Tpw Slir finlr two years. The plant bad a 

rationalise production at the the North West, one in Northern vY '<111 -K1LUV capacity of 2,000 sets a week but . - 

Sunnyside Weaving plant in .the Ireland and the other in Derby- w 54-l, Milnn bad been running at half W , nM . , 

town, releasing 190 of Its 482 shire — are much younger. W1TI1 lVillcill capacity “for a long time.’’, *Pnce 

workers. It is expected that the Tootal is to spend £4m. on a A nb W non-stop “ businessmen’s Colour TV production will now tot Mp«mtaoi* 

cu i£ w ™ be P 1 ? 116 . *. n J “ ly ' .w “ajor re-equipment of these five special” service between Bir- be concentrated in Dacca’s other, Improve tins rear: 

The Tootal decision is another p]ants , part ot a ElOm. tores t- Sham St luE Is being and largest, TV production plant bare already jwe op 

blow for toe North West, still meat programme for 1978 and i a umh e d to-day by British Air- at Bridgnorth, said Mr. Robert Mr. Watoms srid ti • 

Y-oolinrr fmm (Via roiwnl flnciIPPS 10-70 - j: - n« unc nnt thP U.K_ Ct 


making considerable losses in its Mai 

colour TV section for the part -mSSa' . 

twn The Diant had a existent profit margut 

two years. The plant had u a 

capacity of 2,000 sets a week but « 

had been running at half pnres to toe ^ 

nanaeitv “for a Iona time." Ynce margiM test. 

— . . , ,, •«! — • launcnED xo-aay uy dhuuu ran- u utwr*™-***, «... — - . - ,, « 

reeling from the recent closures 1979 which it also announced using BAC 1-11 jets. Watkins, financial director of was not the UK. a 

anftTinilTinarl kir T 11 AQC I, H.i inri -imr-4-jtwl oik HVL A n£ « * ** • _ _ _ ... w . Tto _ J:. ^ nn mowHAlAtTlNlF Wllu 

annnounced by Lucas, GEC and yesterday. The rest of the 
British Ley land, and it will bring spending covers £4m. on the 
renewed pressure for Govern- thread division, between £3.5 m. 
ment action. and £4m. on fabric manufactur- 

Sunnyside Weaving has been ing and between £4J>m. and £5m. 
Incurring substantial losses for an dyeing, printing and finishing. 

ways using dal. -i-lj. jeia. .iauuuo. >• uih A 

The airline expects 10,000 Dacca Radio and Television, manufactwer _ _ ^ 
passengers to use the service this Colour TV set capacity there approached Hita 
summer, was about 4,000 units a week but to a merger. 

two years and economies would The clothing division is to spend 
almost certainly have been made £3^m. of which the larger pro- 
sooner had it pot been for the portion will come under the 
Temporary Employment Subsidy, clothing industry scheme. 

Islamic art attracts bfehafe 

Temporary Employment subsidy, clothing industry scheme. SOTHEBY’S continued Its week by Moise Ksting, La Femme S 

— jl of Islamic sales yesterday with-la jbpe Verte, at £17,000. : 

f-'i 1 f r A an auction of oriental mlnia- The sale, which totalled 

l^riWarnM wam^l nn rriri tores, manoscripte and Qajar £U3A410 was noteworthy for 

vY Hi A* tv wl AIlij vFfi* 1'VFvF paintings which totalled £449,088. the. number of Japanese buyers 

-■•I*: A dramatic portrait of Fatb in attendance. . .. French and 

hionr TflSirK Al* hnnPC ’All Shah in full armour painted German interests were also 

lilglt JXKAl. JAiLs l Mhlr ’Ali In 1814 sold for strongly represented. The, major 

MR : MICHAEL nwaxpH. of Eu^pean MinU.era.of Spor. ~ 

chairman oF British _ Leyland, m London yesterday. ^ ohi, an Iranian dealer, paid nesols by Chagall which was 

warned yesterday against over- Any attempt to change the estimated at around £80,000. 

Tin tun agmoa in French together 
tilth a Mtallod statement In English 
giving particulars of proposed opera- 
tion In accordance with the require- 
ments ol the Stock Exchange may be 
obtained from the banks referred to 

optimistic expectations of toe balance of control in sucb a way 
company's ability to hold, onto a that voting is done by politicians 
UJK. market share of 28 per cent rather than sportsmen and in a 
He told the Foreign Press way that does not represent the 
Association that the improvement weight of participants in the 
in sales last iqpnth — believed to country must be resisted.” 
be about 28 per cent, or even • 

29 per cent, of the market against Black president 

qi — t. — v fnllntuail 3 

Partridge, -the London dealer, 
I E’Dn/lU paid' toe morning’s second 
5ALLKUU1VI highest- price at £45,000. for an 

■y intonv THORMcnorr ■ Alfred Sisley, iEie Pont du Moret, 
BY ANTONY THORNCROFT s(gQed and dated 1888^ Renoir’s 

_ . Jeune Fille an Chapeau- sold; to". 

an anonymous bidder at £42£Q0, 
£60,000 for a portrait of his son, and Fisdher Fine Art "of London: 



21 per cent in January— followed National Union of Student* Dawlatshah, by Jafar. paid, £4<J,000 for an Dll and water 

an intensive maiketing campaign elected Ss firet Stock 0tber hi « h P T rice ? colour on gesso by Paul Klee, 

and an upsurge in confidence. JJSifiS H? is Mr^ Trwor ^2,000^™“ co g®fh° r ^titled iKurrterbunt Among, the 


Agency holding 3S£ » “tfFSffSffl™ SW 

The Welsh De«lopm1nt Agency In the” SZnte NUS Pi £> s - b * ^ ^ 

has taken its firet majority hold- conference in Blackpool, Mr. J Picasso -was represented in the, 

ing in a Welsh manufacturing Phillips polled more votes than JJSH5 on^^parai/ *** W i ,rk ?’ 

company— a £72,000 investment ail his six opponents put together. A*rti*i 0 Oa^m Cal T^ the Japanese dealer, 

in a new tvup of ticket vendins Mr. Phillips* the candidate of attributed to Abu 1 Qasiin- The are MbvsQnetaire at £30,000, 
Sefm ^ the Brort Left “lieSS of Com- prices paid for Qajlr peintmgs „ a ^ Moneqnetnire Assls af 

The investment, in the fonn of munirn and Labour students, will su E? e 5 te< * ^ at * Ji!u ^26,000- 

a shares sod floan deal, gives take over in the autumn “ ; £ ,1L tha 

has taken its first majority hold- conference in Blackpool, Mr. “SSSEf'-or^ Weasap was represented m the 




the aeenev* 6flT ner cenL _ ’oF"the exalted, plateau after toe Sud- voted to Impressionist and 

Muitv Coital 1^ to? new com- New nlant d t n sharp and ® ,igbt faU ’ Modern drawings and water' . 1 UfiK 

dT Wil l A totic 1 P , off ol recent years. colours, Tamewga. toe Japanese f^’AM Shab-teW 0 *-,. ^J) w ; 

Revenue ConS Aut0matiC Magna, toe U.S. speclaUty chen.l- AsmaU painting by Modi- deal fer. paid £25.000 for a. . .. • 
uevenue controls, cals company, ia investing £2m. Bliani, dating from 1918, La gouache, water '.colour, pisteL of -deaf 

llraiuAll t^rti-ni’nff ln a new P lan t a* Graythorp. Jeune- Suedoise. sold for £60,000 pen and bteck Ink: by -Chagall, iieea. sesd ■ /- ^ 

nuwen warning Teesside. at Christie's yesterday to a sale TM Tt&oe.du Peinfre' . . " t ■ -■*. 

Attempts to bring international Mr. Brian Wiggins, a vice-; of impressionist and modern -A'1B34 ! Dinky toy of "a - Pick?' 'Blne L Petof- | ^'^^ ion bH 
sport and international sporting president of the company, said I paintings and sculpture. It was fords removal van, which sold l Ali-tola 

hnHiAC ItTlHfiK tha pnntml nf nnlU voctonfau that thn WnIL- of nrn Inna nP hirn raiAtiiroc K ATinVf Van AJl U finfflT.- Att- ^ 


Wb have hish quality vehicles 
aval (bale for lease, hire, rent or 
purchase over any period' by 

Call Anderson Leasing * 
on 01-4?? 2212. 

I Minister for Sport, told a meeting Africa and Asia. 


direct telephone link with -the auction at'Phillips yesterday; It for Hto. . 

saleroom. The other was a work was the top price in a sale in aid by -anusa 


fy^Road I 
itio^a year 

COS- ' RV UM UJtDmctunr Til nu 

next decade 

w C3 ^SB ?0n 1 W lAN HARt3REAYES ' transport correspondent 

... ^A- GOVB^NMENT review 0 f all budget greater ' than £300m. » 

’ ' IV /• SfH. 11,8,1 st * enaes has so far even if the resources were avail- sett 
" -'^produced savings of £70m. and aMe - 

= >" f , Jf ■^v' mor e can be expected, according The White Paper accepts that Rout e 

: r - * White Paper published ye£ ? emand for road apace will Number 

3 :• t >:ierday. .... increase for the rest of this at/603 

Th e policy statement envis- c 5 atury ’ ^though more slowly *S 
, 1 a stablTanSalroad S than in the past But it 

Irjfp^. *** about £3O0ra. for tSnSSf®*® ttat ** ? defflands 

— HA . * . 1 flW fnnrnnaf and narrnan ■ •• 






Report justifies 
Midlands site 
for exhibitions 



Scheme Withdrawn 
Sandy Junction, Bedfordshire 
Shrewsbury— Rhoswiel, Salop 

NEARLY 100.000 employees are TEE DE 
likely to retire this year on National 
smaller pensions than they are r® _ w ** 
legally entitled to. because of justified. 

System X 

SYSTEM X, the Post Office’s new 

.■,7'ween overcome. «ay««ng oeiween one-mira A27 

;i £ But during this period, the J****** **•«** «*• A4. 

t-' • ' The Government notes a Adi 

: - r.;^ - The road ImiM™. growth in public concern, about 

I °f *** fOBd fcpUding on A45 

*: ;r< ; 4*512, £fi80m - at the environment, but says that A47 

■ - to-aay s prices was spent industry still requires and de- 

-- » s . will never return.’ . serves many road improvements. A47 

*7 ; — For this reason; the Govern- A47 

■ - - -1;. i . ■ • meat’s existing priorities of the 

»:. r ; . department of Transport will M25 London Outer Orbital Road A47 

-Jr.iH 'Continue to re-examine roads in and the roads to the ports remain 
- fi’i-i.'Rme preparation pool on design unaltered. 

. i : •'.'V ' 1 " r-: ,C‘ "iandards and priority listing in It says the Government will in A49 
'--“;r-.., ; 7-me programme. This review will future favour a more selective 
i 2a", conducted In the light of approach to road building, hav- a4? 
;z /‘ ,«caled down traffic forecasts pro- ing rejected the idea of a fixed A4? 

- : 7 t- \ Educed earlier this year in res- blueprint fortbe roads network. 

^Ponae to the findings of the On individual schemes, the a 59 
;.- V; ‘^Leitch Committee report on Government. ondertakes to build 
'■ -■..'•.y'^trunk road assessment. ‘ on the criticisms and sugges- AU7 

: iij_ . tions of January's Leitch report 

-• " -xtannsfkea ' The Transport Department has A127 

‘.r- . -.3 ■* Va- . already started to use the Leibcb- A3392 

.-'^1 The review has so far led to style “framework” approach to 

i ‘flp opnnnins iiC 11 mkanuu. ..J - 

Brandon Creek— Souther/. Norfolk Minor Improvement 
Stump Cross — Newmarket, 

Cambridgeshire Minor Improvements 

Lewes — Bedding bam. East Sussex Minor Improvements 

A 405 — Be r lygrore Junction, 

Hertfordshire Miner Improvements 

M54— Whitchurch Bypass, Salop/ 

Staffordshire Minor Improvement 

A 1093— ■ Levington Heath, Suffolk Minor Improvement 
East Dereham— -Hocfcering, East Dereh am- Nor 

Norfolk Tuddenham 

Hockering — Easton, Norfolk Minor Improvement 

Kings Lynn — East Dereham, Norfolk Narfaorough Bypass 

R«U«n»« SdHm, NEABLY 100.000 «„p.oyee 5 « TOE. DECISION .10 bmld the In « «t a triephonn 

Minor Improvements likely to retire this year on 1 fntnSrt-ft? wliw*? S “change, was unveiled at the 

Smaller schemes smaller pensions than they are U f b “Communications 78” exhibi- 

induding Oswestry legally entitled to. because of Vnfwir^J? ^ on « Binningham yesterday, 

and Nessdiff Bypasses their employers ignorance of sponsored report disclosed (£i.5n^)was _ won by West 3Ld- Tfae gygjgjjj j s io ^ last 

Minor Improvements pensions legislation and Inland yesterda>. lands c pames. stages of development, but the 

Revenue practice, according to Two years of research, earned i Post Office was able to present 

Minor Improvements Antony Gibbs Pensions Services, out by the Joint Unit for Attendance a number o£ models demonstrat- 

Minor Improvements a leaduig firm oE pension con- Research of the Urbaxi Environ- Speculation ^ a Midlands ing the system’s advantages and 

sultan ts- ment at the University of Aston, .. . Mn+rp vmulrl hp ,,n its ability to interface with 

Minor improvements Most pensions are based on and commissioned by the West fbfe^io with^one in existLag V electro - mechanical 

final salary and for many em- Midlands office of the Depart- g ”, MmlLSF emfiomenL 

Minor Improvements ployees this will _ have been kept ment of Environment, showed London has been disproved. first tr j a j. rUn wiu be ^ 

Minor Improvements ployees this 

Minor Improvements down by sue 
East Dereha m- North pay policy. 
Tuddenham Revenue wil 

Minor Improvements to calculate 


Kings Lynn— Peterborough, 
Norfolk/Cambridgeshi re 
no stated date 

Hereford— Shrewsbury, Hereford 
and Worcester/Salop 
Hunger Hill — Dorrington, Salop 
Shrewsbury — Whitchurch, Salop 

East and West Marton Diversion, 
North Yorkshire 
GLC Boundary — Southend, Essex 

Thomey Bypass and 
Eye Bypass and 
Minor improvements 
Onifaury Diversion 

Hunger Hill Diversion 
Frees Bypass/Precs 
Green Diversion 

Minor Improvements 
Smaller schemes in 
due course 
Minor Improvements 

Sown by successive phases of the that in 197&-77 51 per cent of During 1977 the Mimog E* octoter next year, when a smaU 

pay policy. But the Inland the total exhibition arid con- hibitxon more than doubled its s £ T AZe 

Revenue will allow the employer ference market available from attendance, and W.S05 attended P ... the^centreDiece of the 
to calculate salary Tor pension British industry was obtained by the International Business Show. XJL gL Jr.f «wKatth e Third 
purposes taking into account the centre. compared with 39,000 when it ^^Scatioiis ExMbS 

recent inflation. The report said that during was staged m the capital in 1975. J"OTW Communications Exhibi 

Tjere are several defimuons that year, £21Rm. was spent by But the centre has not been The svstem will begin to go 

of final salary tor pension pur- visitors and exhibitors, and that without its problems. The report into the" U.K. network by 1981 

D0S&S Listed DV the JnUlDd hlmncron ftap Mnt a F thaf fiouro nnintc tn a nw»r? fnr fttrfViop -±. «- * ...:n < 

, V„ * r . J ' -I — — — - — - — - — « r JAlALf LUC UCIWULA UY 1901 

poses listea o> the Inland almost 90 per cent, of that figure points to a need for further a t the earliest, when it will be 
Revenue and two are relevant came £rom trade shows and not accommodation and restaurants introduced into a London ex- 
m n2 US «E^”i ar i Case ' 4 % public exhibitions. in the immediate vicinitj-. change and the Cambridge 

The centre had. created U92 The. lack of such facilities exchange. . 

V ..... -J” .■ schemes in a total preparation 'which cannot be expressed in 
• . 1 r.-.ji. ;oool of 400 are also listed in the simple money valuesL 

" ‘ - =■' foiWhtte Paper as being of as yet 

indetermined standard. . Under SvmDafhv 

^ ^±e terms of pre-1977 roads 1, v • • 

— l rjifiolicy most of these projects The White Paper also agrees 

kHti 1/ C I Were earmarked as being at least with the Leitch report that more 
9 v V£\l 3 I Huai carriageways. .. should be done, to apply the 

Rayleigh Weir, Essex Minor Improve 

Basingstoke Northern Bypass 
Hampshire Minor Improvements 

A5 West to the Welsh Border. Salop Small schemes 
Llangua Pontrilas (English Section) Uangua Village 
Hereford and Worcester bypass scheme 

ieeks If: 
ith Ratf 

A5 South to the Welsh Boarder, 

Thursby — Carlisle, Cumbria 
Market Welghton— York, 
Humberside/North Yorkshire 

bypass scheme by 
Welsh Office 

SmaU schemes 
Thursby Bypass 

Minor Improvements 

The W The l»k of suoh facilities 

ftf the last five iMrfrn the P^rt-time or full-time jobs and poses difficulties for the business- One of its chief competitors 
retirement and reOi*ethi« 1>110 casual jobs in the area, man who wishes to entertain will be the Ericsson AXE ex- 

Slaw £ foe with tlirSl of Predominantly in the catering clients. change, marketed both by the 

BS industry. A need also exists for more Swedish company and by 

The other is to take the aver- Tbe report highlights an addi- information and better promo- Thoms on-CSF, which also had 

age of any three years over the tio n to the income of the area tion of tourist and leisure large stands at the exhibition, 

last 13 before retirement and of fl0.3m.. but later adds that it facilities elsewhere in the area. The exhibition was opened by 
revalue them in line with the could be considerably greater. especially in Birmingham. the Duke of Kent. 

cost of living. 

Mr. Graham Puttergill, chair- 
man of Antony Gibbs Pensions, • . j t ~t • • 

sspM.TOffjB Private steel spending may rise 

and now earning £15.000. Nor- MT Cf a / 

^i y a h c£o WOUld eXpeCt 3 pension a CAUTIOUS HINT of further-could weli be looking at the pos- Mr. Wise said that for many 
But he can base his pension on ^vestment in Britain’s private sibiiity of installing one or even years be had been studying new 
his 1973 salary and revalue it in sector steel industry came yester- two more in the next few years, technology which might be used 
line with the Retail Price Index. <**>’ from Mr - Graham Wise, The GFM machine, made in to replace some of the specialised 

Another trend . supported by ♦>, t u Jt >v.«° nn m X'miitfl the Leitch Committee, in this ’many cases considerable sums Openshaw works in Manchester, It can roll billets from 70 mm Operating a “no redundancy 
tite White Paper is towards more p™., a. ? 34 srb mo escoxt- Paper-" would have to be put into pen- Mr. Wise said that if. as expected, to 180 mm in diameter and is the policy. Edgar Alien Balfour hi 

The White Paper's budget . Th^» h^iT ***** says that 34 schemes cost- 

'..^framework for . the P next decide, SgS ^^^dWaO^ ySS i ng £9 ° m ‘ have been d^PPed mS^CmntT'i 

" -'of £30 Om. a year, accepts thxt WbSePauS^^nHSS fr0 ? the programme or down- , iy/ * ™ W L . < 
. . . . .Lhe road buildings boom °f wSiV P^edur^ The f rad ® d to b^rep^ced by schemes 

when fflSteL at today's Se^^Seve^wS of tot T al,in ° £2ta >- 

• * ^ ‘UVOC cnant Will TlMtar ru x 1 - Tn nnftAtid nn tTin ci 7 Q 

r Roads: En 
7132. SO £2.60. 

would have to be put into pen- Mr. Wise said that if. as expected, to 180 mm in diameter and is the policy. Edgar Alien Balfour has 

England s ion schemes by employers to the machine justified itself over first machine of its kind in the turned the works into a profitable 

.60 meet the increased liability. the next few months, his company private special steea industry, operation, said Mr. Wise. 

' Prices was spent, will never ^ nee j t0 avoid i/Ughtini? In future, options on the sire 

- - . . . ^“return. . property by too eariy : a release be of a scheme will be kept open 

— . It argues, however, that this of information about alternative f° r 3s long as possible, but the 
' .’.""L^ituation Is good for the- road schemes. - • ■ paper adds that where plans are 

' ,' T ' . r ’ instruction - industry because. On expenditure,' the White 1 advanced to the point of being 
, • f"'t offers a period/ of stability Paper proposes, alongside the ready to let contracts, the two to 

■ — I; — r ree from the wild swings of frozen- - £300m. .-construction three year delay resulting from 
:: ~/Joverament spending in. the budget to maintain' on a major design change may not 

• -'last The view of Mr. William maintenance at current leTfcls. be feasible. 

-dodgers. Transport Secretary, is The structure of the TraiCport Finally, it says the review is 
hat he could not justify, a Department’s :. road, /buying not a once and for all activity, 

Vlics haltle - 

Taking the heat out of inquiries 

• ' : THE GOVERNMENT'S plan to should . have • the right to will be permitted so long as it 

-: .-:r£. a ke the heat out of public . challenge 41 central .Government does not “influence the pro- 

. . inquiries into road -schemes will- decision to put np ; a road plan ceedings.” 

T“ - include a Jiew system of “in th& first place. . In the Roads White Paper also 

.:r.-*njominating _ inspectors and ThiB. type of*. .decision, -the published yesterday, the Govern- 

• • ■ • paper says, belongs to ministers summarises Its aim on pub- 

• • :■*: i ::. ^ answerable to Parliament. inquires as ^to make avail- 

•• — SCHEMES WITHDRAWN FROM - “The , purpose of highway inSTtj^TavSLble 

•- TRUNK ROAD PROGRAMME inquiries is not to enable local l^^rts^nd analysis on whSh 

wnHOUTREPUlCEMENT ;;,.& R orSov^ o; 

rpOC Jlffitober Scheme ■ . • cr ?? C ^^ 10ns of Pa^ltone,lL, ’' wav inquiry procedures. Cmnd. 

rc w , i A1 713S - 80 35P - 

lanos H-£fi£SvE' RAC chief 

A6 T ° Centra anti-road lobby as puppets of the 

Pemys nire, , . . Department of Transport, will be 

1". AJ0 ^ xt 9 n ..J^. ei Crossing, nonjjxudJed directly by the Lord flllttCKS 

•; Canbndgeah irfc. . - ChaneeDor - rather than simply' 

• - AT3 Lodge Lane Improvement- being selected by Government m./\4-An4.Ai*£i 

- . ntfUw Roisters from a list approved TJrOtGStOjTS 

' A41 Hartspnng . — Broddey, ^ Lo^ chaicellor. . 

- - Hertfordshire* . ■ ■ Tti th<> DcDutDiGiit will* fiinncol T iflU i Reporter 

% ^A4S Buiy-^oiighmuSiiHoIIc.. wn- AN ATTACK on enviran- 

' A4S Stowmarket, ^ ^ ^ order ^ntoU^^ose protests bad 

- - r ... _ r . - for the preferred route so that delayed completion of vitel 

. j:A46 Pamswick Bypass, Glouces- inquiry can look at all motorway links. fntheMM- 

- tershire. options ' lands, was made in Birmingham 

'• -A44 M69/A47 Spur, Leicester- ^p^bush" brief or guidance yesterday by Sir CUve Bossom, 

' shi ^5* ,, j ; notes given -to -inspectors. ch ?i™ an ' u 

.:. A127 GLC Boundary — ^ Moor inspection reports from Sir Clive s*ld: Lomjs 

..'...f Lane, Greater Uindon. consultants and the Landscape ^Wch at present Choke up 

- Advisory Committee. little.. villages will takp full 

■ • - ., — give objectors .the chance to * advantage of what, with tm 

• : .access for objectors to a wide for a re-opening of an completion of the M40 and 

-range of previously .secret where they can point M42. will be a comprehensive 

'nformation, turtle ion uar- to new evidence contradicting Midlands motorway network. 

;.freaces. an inspector’s findings. - “Those who object on the 

- . r : "'. But a White. Paper on high- —set up pre-inquiry procedural grounds of environmmit should 

-• ; -'.vay inquiries published yester- meetings. „ cwie opt liom ■ their 

“ I-' /Iay rejects one of lfip anti^road — allow corrections of fact m : when they will find that the 

- '■'.obby’s " key arguments: that ' draft inspectors' reports. mnosamr Is now extinct mw the 

• at local inquiries —television filming of inquiries, wheel has been invented.'’ 

orc»?s Dc^° 7>-" 
ilandsplm** ; 

• Scheme 

Gosforth High Street Divi- 
sion, Tyne and Wear; • -v 
Skellow Cross Roads fly- 
over, South Yorkshire. • •• 

^ answerable to Parliament 
SCHEMES WITHDRAWN FROM- -. “The . purpose of highway 
TRUNK ROAD PROGRAMME inquiries is not to enable local 
WITHOUT REPLACEMENT objectors to debate national 
. ^.issues nor to overrule the demo- 
r Sdieme' cratic decisions of Parliament”- 

cw nhit : The White Paper goes on. how- 
^{wiTdwIi— ever, to make numerous conces- 
£££ Ry. r sions to the objectors. It says 
riLhfre- ' that in future, inspectors, who 
ovenS^_Yoi^i^_ have bedn characterised by the 
T °^ Centra anti-road lobby as puppets of the 
Derbyshire. ^ •- Department of Transport, will be 

^ xt ° n _ ,J L ‘T'. crossing, nominated directly by the Lord 
camorMgesnire.. Chancellor • rather than simply 

Lodge Law ImprovemenV being ; selected by Government 
!? ,ex ' - ' Ministers from a list approved 

— Broddey, ^ ^ Lo^ Chaicellor. 
Hertfordshire^ _ _ In future, the Department will: 

^ly-^ougham^ ^Sijff^lk. — publish alternative routes con- 
HwgMey — Stowmarket, carrent^ ^ the draft order 

^V o1 . , „ rln „ r .. - for the preferred route so that 
PNnawfek Bypass, Glouces- ^ inquiry can look at aU 

tershire. . . -options.' 

M49/A47 Spur, Leicester- .^.pnhlish any brief or guidance 
shi ^5* „ . ; notes given -to -inspectors. 

Once you fill in our coupon 
you’ll be well and truly 

in the soup. 


A41 Hartspring — Broddey, 

i* Hertfordshire. . 

; A45 Bury — Rougham, Suffolk. 

:'A4S Haughley — Stowmarket, 

Suffolk. . - - • 

• j:A46 Painswick Bypass, Glouces- 


:A44 M69/A47 Spur. Uicester^ 


A127 GLC Boundary -- Moor : — open to inspection reports from 
■ * Lane, Greater London^ consultants and the Landscape 

Advisory Committee. 

n y ,i n • — give objectors .the chance to 

.access for o bjecto rs in a J^ide ^ f 0r a re-opening of an 

-ange of previgusiy ^ - 8e J^ t . inquiry where they can point 
n form ation, write ion liar- to new evidence contradicting 
. ■ J \ rr eaves. an inspector’s findings. 

r ' \ But. a. White. Paper on high- —set np pre-inquiry procedural 
; -'.vay inquiries published yester- meetings, 
i'-vlay rejects one of 'the airtteoad — allow corrections of fact in 
'"obby’s"' key arguments: that draft inspectors' reports. _ . 

- ib jectors at local inquiries — television filming of inquiries 

high bi 

.1- . i 


89 to California 

Which will probably be a considerable improvement on 

where you are just now. 

If you are a company director, or senior executive, 
we'dlifce to presentyou with a sample of our 
free twinpack offer. Two for the pnee of none, 
if yon like. 

Can one containsaveiy special ‘Consomme of 
Pheasant', cooked in tne traditional manner, , 
flavoured with sherry and delicate spices. A smaU 
and symbofic sample of Scotland’s prosperous fife 
sty le. Which yon may oijoy, whilst you reflect upon 

the contents of tin two. 

The secondcan contains a my temp ting “Resume 
of Cumbernanld f , to excite the palate and sharpen 

the appetite. It provides food for thought. 
Thoughts, for example, about one of the country’s 
most successful new towns, established for 
21 years. A town new in name and new in spirit, hot 
old in experience. A town based right in Srotland’s 
heartland, within 40 minutes of Edinburgh and 
Glasgowalrports and littiemore from Prestwick. 
Midway between two major ocean ports, and right 
at the centre of the Scottish motorway network. 
Thoughts about financial advantages in the form of 
generous grants, attractive loans —the best on 
offer in Britain. 

Dear Brigadier Cowan, 

I’m hungry for opportunities. Said mey our Consomme 
and Resume to give me food for thought. 

Chief Executive, Brigadier Colin Cowan. 

Cumbernauld Development Corporation, 
Cumbernauld House, • 


Scotland G673JH 

Thoughts about available and willing skilled labour 
with one of the best industrial relations records 
in Britain. 

minutes between your ideal home andyour ideal 
office. Mountains, lochs and rivers a snort drive 
away. Just about every facility for sport and 
recreation within easy reacL 
So be warned. Our free offer could give yon ataste 
for a whole new life style. But what a menu. 

Position _ 
Address _ 

Tel. No.. 




J^nandal Tines Wednesday April 5 I97g 

New tax 
rates on 

Tighter profit rules 
for drug companies 


Air survey 
will help 
to discover 
heat loss 

d « o1 

By David Fisblodc, Science Editor 


A MODIFIED price regulation crease, companies have had to pany to apply for a compulsory A ■ D0Z P ? large U4C industrial 
scheme governing profits made provide only historical financial licence for the manufacture of a ^ irn ^~ es . are oouaboratmg with 
by the pharmaceutical industry data. drug. — e ** aer ^ Authority's 

fraud possible 

*UL W M»o •"'vo* 1UC UULUU9C Ul LUtS UCW — - - - ^ HUUiUB «, %auW b.u cmnrdv +>, rt 1. ’ * a n-iM mwAIQl _ _ " - r , 

^■AVMAi«i*Anr The scheme follows a com* pharmaceutical Price Regulation companies had feared that the S5S?J!Mi t 5Sw»S!2«!i2f By David Freud 

tomorrow SBSFBE SSS 

Health nearly a year ago. been suSfe^d h?^St Stoour night flights, expected to begm *>ig doHar premium fraud plot Additionally, one of the accused agement yesterday publish 

„ , . ■ orl th . In return for an advantageous Pairew likely, to make excessive oeen gggted m past Labour ^ weel ^ q£ ^ was outlined at the Old Bailey men, AOfted Taylor, had tipped toR details of Budget taj 

THE Government raised the change in patents legislation, profits. hrSmww the industry south, midlands and north-west of yesterday when six men denied ofTWland Yard early iam6 recoamendatioM^ made b 

taxable value of company cars companies have accepted a Eventually if such profits are bas a^ried MnSnlS England, which would be filmed investo ent currency offences.’ about the potential fraud, and Chancellor in February, 

by approximately 10 per cent, slightly more onerous price proved the Government could ^ qSSty^ of dn£ advertise- with a heat camera. The official is John Martin * e Chase Manhattan Bankbe- The institute urges a £ 

?h d ioSt re 8“ latl ° n scheme, stiffened ron- order price reductions, delay in- men ^ r^latons covering A multi-spectral infra-red Wales, 42, of Hunt Mead Close, c*®* suspicions about another reduction in personal ta 

? cfJnn lr0 ‘ of the con ^* creases or order areps^ment of Bpec iflc produSdetails that must camera will he used to film - hot- Ouslehurst, who Is accused with Mwwjeiinywtrei^wim over the hill year, «S 

duced from fb.OOO to £8,000. ments and a tightened industry a proportion of the profits. In j, e included. spots" along a flight path about five others' of conspiring to April 1976 and had contacteithe with the £3.6bn. pnt form 

code o£ pracUce ' practice such actions have only Under the strengthened code one-third of a mile wide, showing obtain money dishonestlyfrom Bs ®* «* 5?*!£4 w«' the GBFs revised Budget, 

the beoinnino of the “ e * s “ na, ?f’| a | For the first time drug com- ^ely been taken. independent members from out- where heat is leaking from plant authorised dealers in investment ■ r ^ * rom ^ aix * ^?3 6 ’ sentations earlier this wee 

h7nf W lii«rtnrs panies must give the Govern- The main concession made to side the industry have been or buildings. currency between August 3, 1375, ° n Sir Derek Ezra, chairm 

ATOnWPs°eSSini rrSffl 5 ment * forecast of their expected the drugs industry by the added to the executive com- The camera, imported from ^ l* 76 - •ff?A”.? c L? n iw.LlS a .55 p !? the Institute. whfch SS 

and employees earmn 0 £7,500 or leve j o{ pro fits in the first three Government was the withdrawal mittee. Also sales re presents- the U.S., is sensitive enough to The other defendants,- .ivho JSTw 8 ?*.^ ptot at Present more than hoSm 

more - months of the financial year, of the so-called Section 41 from lives entering the industry for show differences in temperature also deny the charges, are. wa uunx tuna. agers, said the proposed! 

Previously, other than when the Patents Act In the past this the first time will face compul- of as little as one-third of a Adrian James, 32, solicitor, of rnlAnlo cut was the right amm 

TAX \fi7v * applying for a specific price in- provision had allowed any com- sory examinations. degree centigrade from a height Bray. Berks, Leonard Ash. 39, xvra S ot V.uiOflia stimulate the ecSnomv « : 

comes Into operation this week. The purpose of the new Research-based pharmaceutical ^ an aerial 


tax cuts 



By David Freud 

THE BRITISH Institute of 

In related moves the industry 

«d”Sl5'i5SS F ° r «“ 2ra Ume «™* rarely been taken. independmt ■£££%£ fri 

>ear to-morrow ana wui anect pairies must give the Govern- The main concession made to side the industry have 
j r7 r «f«f°^ ment a forecast of thoir expected the drugs industry by the added to the executive 

ZZpn a rninn S Bienta forecastoftieiraprttefl the drugs industry by the added to the executive com- The camera, imported from a 110 A P™ *>< ^ the Institute, which cbhnm 

and employees earnm* £7,500 or leve j o{ pro ftts j n the first three Government was the withdrawal mittee. Also sales re presents- the U.S., is sensitive enough to The other defendants, tvho ptot at present more than 
more - months of the financial year, of the so-called Section 41 from lives entering the industry for show differences in temperature also deny the charges, are .-7* aom. agers, said the proposed! 


4 years 

Up to 1300cc or 
£2^00 190 

1301-lSOOcc or 
£2300-0,499 250 

More than 18Q0cc 
or £3300- 

£8.000 380 

£8.001-£12300 550 

More than 
£12,000 880 

4 years 

Manchester ‘facing 
shortage of jobs’ 


seeks new 

of as little as one-third oE a Aanan James, ua solicitor, of Tfi-- rt e rnlAnJo cut was the right anum 

degree centigrade from a height Bray. Berks, Leonard Ash, 39, OI y.010Dia stimulate the economy \r ■ 

of 1300 feet, when flown fairly panel-beater of Normanton on He was alleged to' have pro- causing Inflationary and b 
slowly. . . roe Wolds, Note. Atfred Taylor, vSded vital help in November of payments problems. 

Infra-red surveillance of this builder of Keostagton,^ John . 1975 when he opened a file in The recommendations 1 
kind is carried out at night to 5°rf on * ^ comiDO<ij j y S aaar the Bank of England «s Exchange institute— published at thi 
eliminate the distorting effects Hutton, Essex, and Reginald .control Department on a man of the meeting with the 
of sunlight, and is best earned ?L- co nipap y director of called Keith James Gardien, who cell or — were for a cut • 

out during relatively short Warwiotsmre. . .. . i 8 supposed 40 live in AWreney. basic rate of tax -from “U ' 

“ windows ” iu the spring and Bnt the name was entirety tieti- per cent, a reduction of t 

autumn, when climatic conditions- JjjHJJ*®* had be6n by marginal rate from 83 to , 

Sjiefs ^ 

Based on cylinder' rapacities where GREATER MANCHESTER could Chester Council draft structure Financial Times Reporter 
available, otherwise on onomal f ace a shortage of up to 150,000 Pja 0 - he said the centres of most »*,n T nw.r m nm ^ 

mark»t values uo to £8,000. Above jobs by 1986. unless new employ- oId .® r l0WDS m . me f oimty ' “ NBWOLSTLE-UPON-TYNE has 

£8,000 based on value. 

a=ZSr 3 Ji“ jjsSTJf f «■»?**• £ r ,t a ‘S n “ “ aIysing 0,511 BS& sr«a-" 53 E M 

Tmd Lavin chairman of the aese T v - . e , 01 new jobs to the aty in the next Ge ^u JZr\L ^ in pnn t moneys- But the securities was given to Mr. Wales through alcohol, tobacco and petit 

cZu pAnXmStt«. A,! S®”« tD *“ er <hrea year,. It i, to concentrate were non^ent and in the StoS! w« ^Because n^era anc 

yesterday everything possible C, TT,!^S,sSl!f vw.. on the ^“miejJ, mechanical and ^^TntoJnitinn?! ^ names fictitious people, dealing with his affairs when gr0aps 

ba^jpS&Mi in^ SffiSSSR elertri ^ “ eln « riD8 “^teSKKSLft.'SB romsel 3dded - 3USI,icions &£S?T« S', 

industry but the main emphasis XexUles and raininE- for tb e Mr. Kenneth Galley, the city’s S urv^ with infra-red measure- - - and Interviewed -lain. ...; __ SSSSr JL * 

Rail chief is j&rs-SSS'ta “ SUL'Kins arassac " -» 

Vnit-P Of the county deprived of orders. year, ,0 1975 an Ln.ployo.nt poUcy pronranSe ta^e^SKa HarJS tf'XS SnS re^Sn^^K 

V OlCe 01 Introducing the Greater Man- estimated 131.000 jobs were lost. 1 which was set up a year ago. under Dr. BUI Gardner, which gm. rtShW wnSSTtora 30 _pw cent ^5l?«S 

rit DArtiaylr ’ ,^ e using the data from However, they fell through, for he opened files to meet their while the other two m 

jtHlC Boards and ground surveys to various reasons. needs. At times they spok of would absorb the rei 

THI w * 1 T # • T • ouild up a detailed map of tbe Funds ranging from £2L5m. to him as u our man in the Bank of £05bn, in roomily equal 

By Our Industrial Editor HnOllQll flKPQCP 1C PTYllf* beat leaks from pipes, valves, £20m. were allegedly being England, Who has . been tious. 

UliJViliJV IkJ dlt-j- dl M I and roofs. ■ . sought by some of the conspira- straishtened out” These reductions 

MR. PETER PARKER, chairman Cj 0 Britain s lighting hill could be tors to finance the schemes to “ The stakes were hi g h , as the increase the take-home 

of the British Railways Board, gy OUR ECONOMICS STAR 1 reduced by over £60m. a year get unauthorised doRaf premium amount the conspirators planned middle managers eamin,. 

has become the chief spokesman through better use of existing rebates. LateT, sums as. high as to put through the Exchange £7-8,000' by 5 per cer 

for the chairmen of 20 of THE SO-CALLED English- 5 like many others, might eventu- authorities now had evidence lights and the installation of £60m. seemed to become part of Control system varied from senior managers on £} 

Britain's nationalised industries, disease is unlikely to be con- ally produce its own cure. that budget 'deficits financed by mare efficient systems. Dr. John their aspirations. ' £2. 5m. to £20m. and as much as by 11 per cent. This -at 

He has been appointed chair- fined to Britain from now on but There was a need to distinguish excess monetary creation led to Cunningham, Under-Secretary But in the end, despite efforts £60m. was later mentioned. with 4 per cent for a we ; 

man of the Nationalised Indus- set to become typical of between the problems of the gap an inflationary' crisis rather than for Energy, said yesterday. in London, the UB. and else- .The bearing continues to-day. average wages. 

tries* Chairmen’s Group, which advanced democratic economies, separating the growth rate of the real growth. : , 

represents the 20 in their deal- This was the main conclusion U.K. and that of other industrial The temptation to inflate the M m t m 

ines with the Government and of Mr , ? a 2?, ael °. market economies, and the more money supply in the name of full % M / Mrm. -T-^< ^-h. B ^ - n ^ -m-m-m m. -m lv r-, 

other organisations. Financial Tlm^. in the eighth recent occurrence of high un- employment poticies was an Wf ill TO r QtlPF firflflAClPC! IlllltlPfl 

™ -haintian was Sir HeDry Simons ’ecture delivered employment, high inflation and aspect of the English sickness J ▼ 1MB LC 1 ullvi If IIUOVU UllllIVU 

TPSJ Jeiterday at the University of incident protectionism which DO w more likelTto be ex- W MT 

man mi the salaries ’ ^rOctober^ssue ceSes me^ecraPuiSkely ^6 jjj BritSn^refeSS Stfl l Cfl lF P tOF GlGCTjFlClXV SliPI)lV 

nationalised industry hoard of toe uni versiiy*s Journal of persist and, therefore, not the f 5?S.™E2f wWWViMIV VlVVUlVliT 

members. Law and Economics. most fundamental aspects of the t0 .^f - 

This means that both Mr. Mr. Brittan said the “English British disease. BY ROY HODSON 

Parker and Sir Denis will he in disease pertains not to a par- *Many other much-criticised r, ^ 

the forefront of the tussle which ticular country hut to a stage British policies are also followed almost any ouier THE PRESENT structure of the tion. new corporation. reformed industry ur 

may develop with the Govern- in political and economic to a comparable degree by other wesiern society. electricity supply industry for The new corporation would he The White Paper basically con- Electricity Corporation 

ment over board salary levels development" governments, working under He . also discussed union England and Wales would be responsible to tbe Energy Secre- sistfc of the draft clauses of the be settled by forms of si 

when the Boyle Committee on The disease was that of col- similar political pressures. More- power. “We do not know if the unified under proposals con- ■ tary -for the running of the in- recently-prepared Bill for the re- legislation in order t 

Top Salaries presents its next lective action by special interest over, these errors are too recent sustainable unemployment rate tained in a Government White d us try. Suba diary hoards corre- organisation of the industry. The flexibility to change tb 
report later in. the spring. ’ groups preventing a reasonably to explain the longer-term weak- is too high for democratic sta- Paper* published yesterday. The spending to the present Central Government had to drop the Bill try’s organisation as 
The new chairman-elect of the full use being made of «ur nesses,” Mr. Brittan said. bility or, if it is, what the role of Electricity Council would be Electricity Generating Board and because of the refusal of the energy; and to make ava 

or-onu is Sir Frank McFadzean, economic resources. Yet there Inflation had not been con- union-type monopoly is in mak- replaced by a new statutory body the 12 area electricity boards Parliamentary Liberal Parly to stances change. That -\ 

° . .. - “ I ,v., , 1 . 1 . Ji. U„, .1 II.. it 11 1 tu. - ....... 1.4 k_ ...i«VC_ tk. .’I. k.. III. 

! would have 

.Hmniatitn iKxuiei aua nmuQE. xor xne uic uua survey wim mira-reu measure- ^ » . 

decline in Greatw Manchester’s executive,, announced a ments made on the ground, using WMbpiratOTS 

Staoillty Of ex isting InHnctrinl omnlnvmunt nvor the £200.000 TTiarketinp camnaipn in nm-ta.Hla». hast Mmant .... . 

s“5rssjr’ sys'tsra'Br -sa.-sa?*: 

Mr. Tudor Price alleged; .* Mr. changes that made a 
Wales was an essential party to contribution to the re 

If the schemes had succeeded, the schemes because he was able differentials. 

fc D=rsr«£Zi 2 £u&tas asrawr. «r- »?ms: 

By Our Industrial Editor 

English disease is endemic 

White Paper proposes unified 
structure for electricity supply 


of British Airways. 

I was some hope that this disease, quered but at least the British ing it so.’’ 

London Clearing Banks’ balances 

as at March 15, 1978 

THE TABLES below provide the first 
monthly indication of the trends of hank 
lending and deposits, ahead of the more 
comprehensive banking and money 
supply figures published later by the 
Bank of England. • Tables L 2 and 3 
are prepared by the London clearing 
banks. Tables 1 and 2 cover the business 

of their offices and thdr- subsidiaries 
(excluding Scottish and Northern Ireland 
banks) in England and Wales, the 
Channel islands and the Isle of Man 
which are listed by the Bank'-of England 
as falling within the banking sector. 
Table 3 covers the parent banks only. 
In this, it is comparable with the figures 

produced by the Bank of England, which 
show the reserve positions of all tbe 
banking sectors subject to credit control. 

Mino r differences here arise from the Eligible liabilities 
exclusion from the clearing bank figures . 

of Coutts, a subsidiary of National sSwdidSri 
Westminster but a clearing bank in its Northern Irel 
own right Accenting hoi 

called the Electricity Corpora- would be established within tbe support its passage through achieved by giving the 

'Parliament Secretary powers to ma* 

New powers proposed for the mentary Orders to pre» 
[TT 1 • f* . _ industry in- the White Paper- in- organisation of the ind 

oanklllg figures • U p ? ower to manufacture and “Ma^/tt^overnu 

(as table 9 in Bank of England Quarterly Bulletin) sell electrical plant or fittings Posals now contained 

ELIGIBLE LIABILITIES, RESERVE ASSETS, RESERVE RATIOS, and tbe by-products of electricity White Paper follow f 
AND SPECIAL DEPOSITS generation. report on the Plowdc 

1— Banks is i^d in ttat 


fUL fin. tlu, nimneoil mmnntiMi Hr. Antnony weagwu 

ILK. banks 

London clearing banks 

Scottish clearing banks 

Northern Ireland banks 

‘“*1 vvwoj. M r Antfinnv WcdcwO- 

towards tbe proposed carporation. 
engaging In uranium exploration 
and extraction as a raw material 

source for the growing pnHpar White , Paper that, ar 

power 'programme. . . . ti _ 4 . 

Tbe White Paper states that and unions, its contents 

the -BUI was drafted to meet cer- goodwill af , > ndus H 
tain Government objectives for The White Paper r 
the industry, namely. — strong current ot opi 

_ ■ _ ' + . • favour of change ft 

• ■ ..the Government preseDt . fragmented stn 

accepts the need for a new a unifle 

unified statutoxy framework 

which promotes more effective 
policy-making for the industry IHexibilitV 

“ * ^ 0le ’ _ ; ^ It goes on: ‘The Qx 

• There must be, safeguards ® te ^ necd for - 

against over^entrahsatton and wor}c promote 

the industry must continue to be policy-making 

fully, responsive to consumers’, as a whole- 

needs kt local leveL To empha- Relieves, however, tin 
rise that point toe White Paper Sr£t ?o retain the J 
proposes that the Energy Secre- w j3 ch aikm the 
tary should contone to appomt structure to e' 

the leaders of tbe -industry by provide for gafeguardi 
having the powers to appoint the oyer^ntraUsation, and • 
chairman and members of toe ^ industry con tin 
Electrioty Corporation, and that, resp0 nsive to cfl 
he should also continue to needs at ^ local levei 
appoint the members of the sub- Tbe reorganised ind 
sidiary generating aud area p ro p 0sedr -would also ha 
Boards. duties . to consumers 

consultations with mar 

Accepting houses , L869 



Sterling deposits: 

UJv. banking sector 

XJJv. public sector 

UJE. private sector 

Overseas residents 

Certificates of deposit 


£m. fin. 

Oium sa 
rag uli 

£m. tin. 


Treasury bills 
Other bills 


£m, fra. 

Change on 
oi oath 

Overseas banks 

American banks 

Japanese banks 

Other overseas banks 
Consortium banks 

of which: Sight 

Time (ine. CD’s) ... 
Foreign currency deposits: 

UJv. banking sector 

Other UJL residents 

Overseas residents 

Certificates of deposit 

Special deposits with Bank of 



British Government stocks ... 

Total eligible liabilities* .... 


UJv. private sector 17,732 

ILK. public sector ISO 

Overseas residents 3334 

Total deposits .. 
Other liabilities* 


Other sterling assets* .. 

Foreign currencies 
Market loans: 

UJL banks and d 


Certificates of deposit 


+ 11 Reserve assets 
U.K. banks 

London clearing banks - 

+459 Scottish clearing banks 

Northern Ireland banks 

Accepting houses. 


Overseas banks 

American banks — - 

" r2az Japanese banks — 

Other overseas banks 

Consortium banks 

Total reserve assets 



Cash and balances with Bank 

oC England 

Market loans: 

Discount market 

UJv. banks : 

Certificates of deposit 

Local authorities 

Other - 

4-222 I Constitution of total reserve assets 

Balances with Bank of England 
Money at call:- . 



UK. private sector 

UJK. public sector 

Overseas residents 




+ 1 + 


Discount market 

Other - 



— 56 

Otter foreign currency assets* 



“ ■ 

+ 89 
+ . 6 

UJC, Northern Ireland Treasury Bills 
Other bills: 


+ 99 




Local authority 



Acceptances - 


+ 7 

British Government stocks with one year 

* Includes items iu suspense and in transit. 

or less to- final maturity 



Total reserve assets 


Total deposits 59351 


Cash and balances with Bank of 

England 99ft 

Market loans: 

U.K. banks and discount market 10,414 
Other 9.455 

Bills 1363 

Special deposits with Bank of 

England 822 

British Government stocks 2341 

Advances 20,787 




* Change 














Ob (stud Ins 








month • 






fin. . 






fin, .. 





+ 48 


- 4 


+ 163 


+ 266 


- 75 



- 35 


- 20 


- 45 


— • 8 


+ 2 

- 53 


- 46 

2360 . 

+ 3 


+ 68 


- 47 


- 30 

- 61 


+ 56 


- 37 


+ 39 


- 90 


- 28 

+ 38 


- 32 


- 2 


- 36 




— 3 

+ 11 




+ S 


+ 5 

• 27 



+ 20 


+ 5 


+ 21 


+ 131,. 
+ 72' 


- 34 



+ 10 


+ 28 





+ 18 

Ratios % 

U.K. banks 

London clearing banks .. 
i Scottish clearing banks L 
Northern Ireland banks 

Accepting bouses 


Overseas banks 

American banks 

Japanese banks 

Other overseas banks 

Consortium banks 

Combined ratio 


+ 352 


+ 91 


+ 5 


+ 1 


- 36 


- 31 


+ 51 



+ 24 


- 3 


+ 102 






+ 14 


- 4 


+ 31 


+ 32 






+ 03 


+ 03 


+ 0.1 


- 2.0 




+ L0 




+ 03 




+ e.v 

_ The industry sbould pay due general public. The £ 
regard to wfder national objee- Consumers’ Council for 
tives 'and its social responsabili-. and Wales would be « 

ties. on a statutory basis and 

. man would be a memo 
Democracy Electricity Cotporatim 

Other principal duties proposed intended that the : 
for ; the corporation are:— to organisation of the * 
devolve - maximum managerial Consumers' Council w 
responsibility- to tbe Boards; to established by Park 
avoid undue preference in Order in the same wa 
supplying electricity; to have industry’s organisation, 
regard to the needs, of con- after consulting the exis 
snmefcs; to ‘promote the simplifi- sultative Councils: 
cation 'and standardisation of The Select Cpma» 
methods i of charging - and Nationalised Indus tn 

standardisation of systems of decided to start a-majo 
electricity supply and fittings; to this - month into toe -* 
promote industrial democracy; supply industry. 
to consider the . effects of pur- will be imdenakmg a 
Chasing -- and manufacturing pre-legislative hearings 
policies- bpon suppliers to' -toe draft Bill as It is set o 
industry; : to carry out research White Paper. -- ®T 
and development; to promote the' welcomed toe -cog™ 1 ®! 
efficient aud economical use of si on yesterday. Be »■ 
energy and to make available as investigation will P 10 * 
fully - as' practicable . without opportunity for * 
breaching" confldentiatity. in- Bill to besuWected “ 
formation -about Impolicies. scrutiny by MPs*™* 

. ft: is propose* to, keep toe political pressures 
names ot toe area Boards which with legislation. _ 
are wriT known to consumers. ; . Tbe .report from “ 
The White Paner sugeests that committee wrm . 
this 'would “give continuity "to before the Bui IS^ 
MteuroSsJut toft local level and the House, 
lSSS-fltt-IWtt of toe changer examining 
II non -too B»t the Prourned the dectri 


(Parent banks only) 

than one year but less than 18 months to 

final maturity amounted to 

2— Finance bouses 

Eligible liabilities — 

Reserve assets 

Ratio l%) 

for";- determining strategic sinners, g:j[- s f 

safe** it 

Eligible liabilities 



7386 + 39 


- 1 


+ 78 




Reserve assets 


+ 94 

937 - l 


+ 1 


+ 33 


+ 61 


Reserve ratio (%) 


+ 03 

123 — 




+ 0.4 


+ 63,. 


_ \ Special deposits at March 15 were £1 ffSSm. (up £lSni.) for banks : 

“ and £10m. (unchanged) for finance bouses. •• Ieterest-beaxing Jf*}® 1 ®-' 
+ 0 ° eligible liabilities were £2S.700m. (up S4m.). •• -• ' 

It ; fi' also proposed toat 

taxied"' . structure .of ; 

Financial Times Wednesday April '5 1978 



Major talks 
on railmen’s 

to oppose 

new incentive scheme 

pay likely to 
be delayed 

Banks 9 union to stay 
in insurance field 



opposition is Voting ends to-mornw .and the to the 12,500 
■ to tie proposed new results may be announced on force that Mr. 

"i-i-r - _ — nCGBtiw scheme (or T-*»vlanH t i_ 

. ... ncentive scheme 7 for Leyland Friday. 
„ .‘-^-ars. Stewards '--jg- - — 

have urged the He company, sees the 

cut in the labour 
Michael Edwardes, 
British Leyland chairman, has 
self- said will be necessary this year. 

•porkers at. Longbridge, financing incentive scheme as an n ,i*.. * K „ 

^v;^- ^>nmngham t to reject the deal, Grenville Hawley, the 

N yhich they describe as 
r; -7 Some -7,000. workers. 

, STSaSS mSSS^& and Genera I Workers 

f^gjwg produc- union national secretary for the 

r- *- •» , - -w.-w.o, at the-tivlty levels to that nf European automotive industry said- “We 

aover plant, Solihull, have voted competitors. an?DM Sm toSttea ‘redui 

U sa^'i?*5*y a show of hands to oppose the The unions complain that, be- dancy Stfon iSt w l* in a 
*■ ia:s '-r^^eme. Which offers the prospect cause the bonus ir based upon nSuTous inreJtive srteme ” 

_r l ' 4 't3 an £8-a-week -bonus. At Castle overall plant performance, ^ incentive sraeme. 

Zl biijTsromwichi Birmingham, the 500 workers win see no relationship • A . Chrysler Coventry there 
— fUaij -3 -v.' ^jjwoolm&kers have been recom- between individual -effort and are hopes that the 4 000 workers 
0: ?■■*.■ b baSM/-^" d A t0 faoy - ea E?i08S-; .. at the Stoke engine plant will be 

■ .*■- » Thp i-nmYiarMr 

now under way. 

Shop stewards are also anxious recalled to-morrow. The 70 fork- 
re tain mutuality — the right- to lift-truck drivers, o 
trade determine with management the Monday, will vote to-day on a 

inr.7*"*5 e=5=, tt6at* Tb ® company, after failing to to retain mutuality — the right- to lift-truck drivers, on strike since 
of '7T“-:lLj^p‘ eac h agreement with, the tr; - ~ - 

:t :: >. • 


- ther 






Singer chiefs to hold Rolls-Royce 
talks on U.K. factory doses plant 


- Cjj, A 

- ■- -*■ cttljfiK. ... 

X “„.r u ‘- : - j-rE<??ENIOR executives of the Singer 
’ jd - 2e? V.aA, Company, in New York, are to future 

By Philip Bassett 

.We are really- looking to the THE ROLLS-ROYCE aere engine 
nre. We want Singers to invest factory at Ansty, Coventry, was 

the 5,000 workers. ooin aomesuc- auu jb^uuu An sty and Rolls-Roy 

’■* c'.-r.r ' :h? I Mr. Joe Flavin, president and machines mainly for export, .ka^e aero plant at nearby 

- :r, r-vj . m- ' ‘ ihief executive of the U.S. oom- abounded since tort to -where manual workers are sit- 

- . .- Clvdehank area, where Singers : . a „i. 

Rolls-Royce's other 

*Sany, is to visit the U-K. in. June, Clydebank area* Y/bfcre Singers ^ j s now nearly 6,500. 
.-*+.,*„ after Singer , has completed a it BOt 1,700 staff in the industrial 

ir:C . ;^vorld-wide sourcing, survey of “fA.? and marine division at Ansty. 

:r L= --^Jielr future manufacturing t^LnrS^sSvev who can work without the 

^ . 5 - ;r~‘equirements. • sourcing survey manua] work ers, are expected to 

r.iz-:*-* 'J- After a meeting yesterday i h turn up to-day. 

‘ ' vl London hotel between Clyde- , niachine is being phased Informal talks between shop 

- • r -fV^ank shop stewards,unIon offi- S^ t p^debSlvdtt^f Swftf stewards, full-time union officials 
Mr . Kuhn S neer's °“t «T CtyoeoanK, Witn a loss. OI 



rials and Mr. Ed Keehn, Singer's isn 
i resident of European operations, "JV 
i joint statement . said the dis- -■ ■ “■ 
:ussions with Minister would 
nvolve possible options for the 
)Iant as formulated. • by the 
survey. ' ^ 

Mr. Keehn added that he was 

jobs by the end of next and Rolls-Royce management 
J ' r"- have been arranged for to- 

The dispute is over 

morrow. The dispute is 

1 • the timing of a small percentage 

• 1BNERS in Nottinghamshire of a 10 per cent, annual wage 
have been raged strike over award. 

plans close •' dcrvfc ' Tqpersal ■ 

Colliery. The call to the ELOOO 

:onfident the Clydebank factory miners was made by the^laVb'nal • SIXTY tugboatmen yesterday 
vould continue to .have a place Union- of Mineworkera 1 Jtrea accepted a 17 per cent pay rise 
n Singer's world-wide thittkinA e rt carBye ' after Mr. - Anjj&fey and-rfeared the way for the open- 
or the future. . V ; li. « ^Wedgwood ‘^Beni#^ ■ the ■■.'ESirfy^to'g of Britain's newest port The 
Mr. John McFadyen, Clydebank Secretary, said in a letter that he men have' boycoted the new 
tewards convener, said ’ that was not .prepared to intervene £38m. Royal Portbuiy dock at 

here was no- immediate ; threat over the. Coal' Board’s ^proposal Bristol for two months in pursuit 
_o jobs at -the- plant. to close the pit in ISflJ. . ... .of a 27 per cent pay increase. 

By Pauline Clark, Labour Staff 

NEGOTIATIONS on a pay deal 
for some 200,000 railwaynien are 
expected tD be further delayed 
to-day. while unions and manage- 
ment concentrate on plans to 
solve the relatively minor inter- 
union dispute over bonus pay- 
ments to train guards. 

A British Rail Board spokes- 
man said yesterday ibat this 
would almost certainly delay 

further the tabling of a firm 
pay offer to more than 200.000 
employees, although unions and 
management were planning to 
discuss pay and productivity 
before the implications of an 
investigation^ the dispute under 
Lord McCarthy were tackled. 

The train drivers' union, 

ASLEF says that it will agree 
to ao examination by the indus- 
try's negotiating machinery of 
what it describes as a - sec- 
tional ” pay deal for train 

guards in the National Union of 

Railway men. as suggested by the 
McCarthy advisory panel. 

But it has yet to agree with 
the NUR on when the examina- 
tion should take place and the 
prospect of industrial action 
over the issue remains. 

Leaders of the NUR are plac- 
ing priority on achieving an 
annual settlement duo on 
April 24 and have opposed the 
train drivers’ attempts to have 
the bonus issue dealt with first. 

The forthcoming national pay 
offer is said to have undergone 
“some manoeuvering” of the 
figures following the eruption of 
the row over the bonuses. 

The Board has been working 
on an offer within the Govern- 
ment's 10 per cent, guidelines 
which includes a productivity 
arrangement to yield an extra 
£350 a week. 

This would be dependent, 
however, on unions’ co-operating 
with further manning reductions 
and changes in work practices. 
It seems unlikely that the 
Board's proposed formula for 
working out productivity will he 
left unchallenged by the unions. 

The -formula, known as the 
Business Performance Index, 
would be based on measuring 
the number of hours worked by 
ra-ilwaymen against total pas- 
senger and freight miles 
achieved by the railways. 

• The unofficial three-day-old 
strike which has brought British 
Rail engineering workshops at 
Doncaster to a standstill spread 
to. York yesterday. Some 2,400 
sh^rp floor workers walked out in 
support of their colleagues after 
a mass meeting, following picket- 
ing by the Doncaster strikers, 
protesting about the manage- 
ment sending home a colleague. 

THE National Union of Bank 
Employees yesterday committed 
itself to further incursions into 
the insurance industry, to 
defiance of the wishes of the TUC 

The union's annual general 
conference overwhelmingly 
defeated a motion calling for toe 
withdrawal of its representation 
in insurance companies and 
building societies to concentrate 
in banking. 

The union’s executive sees the 
vote as a mandate to step up 
recruitment in insurance, an area 
which Mr. Clive Jenkins’ Associa- 
tion of Scientific, Technical and 
Managerial Staffs considers its 

Mr. Len Murray. TUC general' 
secretary, told tbe union’s 
delegates three days ago that it 
would be better for the trade 
union movement if tbe associa- 
tion stayed out of banking and 
the bank employees’ union out of 

Mr. Leif Mills, general secre- 
tary of the National Union of 
Bank Employees, told delegates 
yesterday that the union was not 
seeking confrontation, but would 
not be “ pushed around " by any- 
one outside the union. 

He also gave notice that the 
union would be mounting a cam- 

paign of recruitment in insurance 
and elsewhere. 

Mr. Bob Carleton, an executive 
member, issued a veiled warning 
that unless the union maintained 
and consolidated its presence in 
insurance, it would face beto; 
“ gobbled up ” by toe association. 

Meanwhile, the ' bank 
employees* union has negotiated 
profit-sharing schemes worth 
about 4 per cent, at Midland and 
Lloyds banks, and intends secur- 
ing similar productivity payments 
within the rest of the English 
clearing banks. Recently- 
negotiated deals in the Scottish 
banks include 4 per cent produc- 
tivity payments. 

The union’s executive was 
instructed to press for a reduc- 
tion in the banks' house purchase 
loan interest rates for employees 
from 5 per cent to 2J per cent. 

• Twelve managers’ associations 
in leading insurance companies 
have formed the Confederation of 
Insurance Managers* Associa- 
tions. The confederations aims 
are to collect information con- 
cerning the employment of 
managers in insurance com- 
panies, to represent the views of 
the member associations to other 
bodies, and to offer guidance to 
member associations in dealings 
with their executive manage- 
ments on aspects of employment 

Lorry owners hit 
at British Rail 


THE ROAD. Haulage Association 
yesterday joined the dispute 
over the Government's decision 
to restore British Rail's right to 
engage in commercial road 
haulage operations. 

Mr. George Newman, the asso- 
ciation’s -director-general, said 
in a letter to Mr. William 
Rodgers, the Transport Secre- 
tary, that the result would be 
still more overcapacity in road 

Furthermore. British Rail’s 
usage of “marginal costing” 
would depress haulage rates and, 
because the services would run 
at a loss, inevitably become a 
burden on the taxpayer. 

The Government’s decision to" 
restore powers lost by British 
Rail in the 19fiS Transport Act 
has come in an amendment to 
the Transport Bill now before 
Parliament- ■ - 

This amendment • is designed, 
the Government says, simply to 
allow the Freightliners road and 
rail container carrying company 
wbich-the Bill restores to British 

Rail ownership, to continue its 
present operations unhindered 
by the law. 

The association’s worry is that 
British Rail will take adanvtage 
of the phrasing of toe amend- 
ment to take a much wider role 
in road transport 

Tbe amendment gives British 
Rail the freedom, where “ it 
appears expedient” to use its 
vehicles “for the carriage by road 
of goods of any description” and 
the ability to carry out a con- 
tract for rail carriage using road 
vehicles if necessary. 

Although the amendment 
clearly gives British Rail wide 
powers, toe nature of the 
Freightliners business does in- 
volve use of road trunking 
vehicles in, for example, places 
where rail facilities are not suit- 
able. Without the amendment, 
it would not be able to meet all 
of its existing commitments. 

Road and rail unions have also 
expressed anxiety about the 


New chairman for 
Mitchefi Cotts 

Mr. P. P. DnnkJey, deputy chair- 
man and managing director of 
Mitchell Cotts Group, has been 
appointed chairman and managing 
director in place of Mr. J. K. Dick, 
who has retired. Mr. Dick will 
continue his other business 
activities from Hume Holdings. of 
which he is chairman. 


Mr. William Kenyon, a director 
been made chief executive of the 
company. ^ 

Mr. R- H. Soames has been 
appointed chairman and Mr. J. W. 
Stokes, managing director, of 
of Mr. ■ D. P. Johnson, who has 
deft the group. Mr. Soames 
remains as chairman and manag- 
ing director of Watneys London. 
Mr. Stokes was formerly deputy 
managing director of Norwich 


Mr. Robert Brook, chief execu- 
PANY. has been appointed to toe 
new post of deputy chairman of 
the group. 

Mr; B- L. Hemming, chief execu- 
tive of Pritex (Plastics), has been 
appointed to the Board of the 
parent company. RELYON PBWS. 


Mr. E. John Baden has been 
appointed managing director and 
chief executive of the ITALIAN 
June 30. Dr. Mario Perricone, 
who has been on secondment to 
the bank as deputy chief execu- 
tive, is returning to the BANCO 
DI SICILIA to take up another 


Brigadier S. v. B. Theron has 
become chairman of Hawker 
Siddeley Electric Africa (Ply.), 
Hawker Siddeley Africa 

(Machines) (Pty.), Hawker 

Siddeley Africa (Power) (Pty.), 
Hawker Siddeley Africa (Switch- 
gear) (Pty.) and Hawker Siddeley 
(Transformers) (Pty.), succeeding 
Mr. R. R. Kenderdine, who has 


Mr. A. L S. McKiddie has been 
appointed assistant general 

manager with the WOOLWICH 
specialise in personnel matters. 

Mr. R. S. Racket t has been ap- 
pointed assistant director (en- 
gineering planning) at BRITISH 
GAS headquarters. He has been 
engineering planning manager 
since 1970. 


Mr. E. C. EdghOL at present 
an associated member of BUCK- 
brokers, wQl join the partnership 
on April 14. 


Mr. Frank Brown has beco me 
general manager of FIRTH 
BROWN. Mr. Brown was director 
of development at Firth-Vickers 
Special Steels and was previously 
with Shepcote Lane Rolling Mills. 


Mr. R. D. Gee has been ap- 
pointed chairman of DREXEL 

London-based affiliate of the 
Drexei Burnham Lambert Group, 
and vice-president of Drexei 
Burnham Lambert Incorporated. 
Mr. Gee had* been chairman and 
chief executive officer of 
Ametalc© Trading and managing 
director of Amax International, 

both units of Amax Corporation, 

Mr. Bryan J. White has been 
appointed company secretary of 
SLEEPEEZEB and subsidiaries. 


Mr. Ncfl MacGregor has been 
appointed a director of GUY 
member of the Butler Till and 
Guy Butler (International) 

broking group. Mr. Gerry Wilton 

has been made a manager of 

Butler TilL 


Mr. John P. Harrison has been 
apimtoted director of the KNIT- 

TION. He succeeds Mr. Alan 
Kershaw, who has retired. 


Mr. Eric Bond has been 

appointed executive director (pro- 
duction) of EDGAR VAUGHAN 
AND CO. and Mr. George Clayton 
has become technical representa- 

■* ’ 

Mr. W. B. Lander has retired 
as a director of CARRINGTON 


Mr. Peter Hill, sales division 
manager, has joined (he Board of 
Trevor Palmer has been made 
technical director on the Board. 

Mr. J. B. Mays has been 
appointed to the Board of GLAN- 
part of toe Charterhouse Group. 

. Mr. L M. Jack, managing direc 
tor of British Transport Hotels, 
has been appointed a member of 
the governing council of toe 
INSTITUTE to represent tbe 
interests of the hotel and cater- 
ing industry. 


Mr. Alec Sharp has been 
appointed to the Board of ENNL\ 


Mr. J. B. MarKirdy has been 
appointed managing director of 
VINTEN GROUP and relinquishes 
bis position as managing director 
of W. Vinten, but remains on tbe 
Board of that company. Mr. A. R. 
MacMath has become managing 
director of W. Vinten. 


Mr. Ian S. Gordon has been 
appointed a director and Mr. 
John D. Knight assistant director 


Mr. £. H. E. Davenport retires 
CO., stockbrokers, on April 14. 
Mr. R. A. Corbin, who has been 
with the firm since 1958, joins the 
partnership m the London office 
on April 17. 

Mr. Alan On- has been 
appointed company secretary of 

■r ?rJr: 

: to da* s 


„r.i = 


'_"tr -t 

• --r 1 . T.'h ,, n 
- '-e£ 

.. .. a. 

- • c?r:i2-* 

- r** 

. fiscsrS- 
. :- a j « 

-5:3 5 

■ r .- tM* 


;;; t 


-VI • 

: • ■ • . " p-n«: f 

• ■ ' ' !r 

‘ V- 1-"’?' 

Flexibility. ^ 


; ... . v': 


.. ■ • • ■" r ‘.i ’? 

: .r«5 

_ . - ' -J . " .'■.JJ,. 1 " Jrt- 

• v •• . < ■ 

.. I -"‘sv-Ls -1 

L iJi' 

li 9, 

;. , n r? * .rtv *. ? 
B.'- >:■ 

Power by Parachute 

This Bosch generator fell, quite literally, 
from the heavens* It was delivered by 
parachute, together with tents and other 
material, as part of a training 
exercise for the German Emergency 
Relief Service. Ibis was only an exercise, 
bnt when a real emergency arises, 

Bosch generators are always there 
ready to supply on-the-spot power. 

generators with sound-deadening cowl 
covers. Safely features to guard against 
the risk of faulty operation are built in. 
So whether your Bosch generator falls 
from the skies by parachute or arrives 
by rather more conventional means, it ^ 
is a heaven-sent gift for all who require 1 
instant portable power. 

“We were able to work round the 
clock and secure the dam only because 
we had sufficient light for the job. Our 
generator plant was operating non- 
stop”, rescue workers from the 
Emergency Relief Service recalled. 
During the severe flooding along the 
north German coast in 1962 they had 
been called in to mount a continuous 
watch over the threatened dam. Even in 
those days Bosch generators were part 
of the rescue teams’ standard equipment. 
Today hundreds of thousands of Bosch 
generators are in daily use under 
much less dramatic circumstances: 
as portable power supplies for 
subcontractors on construction sites, for 
track-layers working on railways, for 
a host of industrial concerns requiring 
supplementary power sources and last 
but not least, for the many campers, 
caravaners or. do-it-yourself enthusiasts 
who want a reliable portable power 

Bosch generators are really mobile 
power stations. The smallest gives out 
a useful 650 watts, while the largest 
produces some 65,000 watts, enough 
to meet the requirements of an entire 
block of flats during a power cut. . 

There’s more to Bosch than yon think: 

Your car engine almost certainly has 
some Bosch parts; and it may well be 
tested by Bosch equipment at its next 

Many of the goods people buy in 
their supermarkets have been packed 
with machines produced by Bosch. 
These provisions may be stored in a 
Bosch refrigerator or freezer in a Bosch 

Television viewers will have seen 
the Olympic Games through Bosch 
eyes, as many of the sporting events 
were televised by Bosch Femseh 
cameras. News and entertainment in 
cars can be received with Blaupunkt 
auto sound systems. 

Bosch power tools are at work in 
industry, on construction sites and in 
homes world-wide. Bathrooms and 
kitchens are equipped with Bosch 
fittings and built-in units. Deep-cooled 
blood stored in many European 
hospital blood-banks is restored to body 
temperature with Bosch medical 
equipment. / 

Bosch employs 5,700 people in 
research and development alone. 

Bosch have at. present 10,000 patents 
throughout the world, with 15,000 

Bosch generators are used throughout 
the world in 100 different countries. 

They will give reliable service even 
under tropical or sub-arctic conditions. 
They will even stand up to humidity 
levels of 95 %. On request, Bosch can 

Bosch UK: 

Robert Bosch Limited, Watford, Hertfordshire 

supply fully mobile trolley-mounted 



Financial Tunes Wednesday April 5 





Tory peers ponder 
what’s in a name 

Six to 



TORY PEERS flexed their former Tory Minister Opposition they had been robbed of some CPQf bybupfut coBinimi Ill llUIdl 

H muscles last night at the start peers argued that without such of the substance of the measure hupbit coRNWRLlogar STAFF . : „mT 

llFI/liAni* of the Committee stage of the a change the new body would be as welL _ . CANDIDATES of '■&£' state of Liberal fortunes would bY Philip raw 

fi| I iLlBdl Scotland Bill, with Earl Ferrers, confused with the long-estab- Lord Ferrers protested at the By Ray Perm®, Scottish majorpartie? fightmsftiie bean' achi^menL But tite -- PHUJPRAWST0 ^ 

Deputy Leader of the Opposition fished and authoritative General Munster’s hard line attitude and Correspondent ' 20 by-election besan their partes pinning its hopes on the “THE PRIME Minister 

in the Lords, warning the heavily Assembly of the Church of Scot- the Government’s uncompromis- formal campaigning yesterday in highly efficient organisation it his feet again ...” BBC’s 

THE PRIME MINISTER yester- outnumbered Government ranks land. . ■ mg stand against an amendment NOMINATIONS clued y ester; Lambeth Central, the South already possesses in Lambeth. panted excitedly, 

day declined to confirm or deny to avoid unnecessary confronta- Lord MeCluskey, Solicitor- which he regarded as being non- tor the Garscaddea, London seat where race and Mr Blunt, backed at a Press " He’s trying to take 1 , 

a report that Britain had tion. General for Scotland, maintained party and non-political in charac- oy~etection on April immigration are certain 'to HSe -conference by Mr. David Steel, the. steam out of W 

agreed to deploy the American He issued this cautionary in- that was no possibility of ter. 13. Six candidates are stand- prominent issues. ... - the Liberal leader, said yester- smilingly commented. ■ 

neutron bomb in the U.K. Junction before peers bad even confusion. Supporters of the He said it boded ill for the *. Defending for Labourite seat day that the main issue of the _^Priine Minister’s ; t 

responsibility for* reporu Sn and crooobeorh support-*^ i to ** » — “*«“»• JMJS* £ ftg SIS f&i2l!£*2B2L£ 3S"»JE=S» M t£t 22SJS2T1SW S 




_ „ _ ‘ CANDIDATES of tb& ; three state of Liberal fortunes would bV PHlUP RAWSTOoi . 

By Ray Perman, Scottish major parties fighting the April be an achievement. But the • 

Correspondent 20 by-election began their party is pinning its hopes on the THE PRIME Minister 

NftsnvATmw! fonnai campaigning yesterday in highly efficient organisation it his feet again BBC’s 

NOMINATION^ dosed y erter ; Lambeth Central, the South already possesses in Lambeth. panted excitedly. 

h-a i d ^?7 ’ London seat where race and Mr Blunt, backed at a Press Hes trying to ;take : , . • 

taas^>w, by-^eriion on April immigration are certain -ta he ^conference by Mr. David Steel, the v steam out of w 
13. six candidates axe stand- prominent issues. ... - the Liberal leader, said yester- smilingly commented. ■ 

Th*. tWI ****** a. Defending for Labour the seat day that the mam issue of the ^Pnme Minister’s ;i < 1 

*E£ daft.ol.cpmpalgn would be fcouju end 

ITN. the BBC, or in news- base elections to the Scottish 

papers. Assembly on the additional mem- oflaflOtry 

all during the early proceedings 
in tbe Commons. 

* el^uTST lr ”r veteran MP who had reofesented oenina uie wnoKescreeu w uur wc^ccu mjuuouu - 

<^over ae Sort^hNmtioiul the constituency for SSySSvIs cusslons of numbers of imrni- heavyweight boxing <* 

As regards the neutron bomb, 

it is a question of weighing —*• -7 01 aaacwuiy, wmuu *»aa ccuuai .given careful consideration to all eMEiMre 0( me muhw nny, in,. T ._ betb — in spite of its immigrant nave nau aouots, tne c». 

the very substantial political Lord Ferrers, backed by to the whole * concept of the the arguments which peers had «■* MP tor Aberdeen South jerem^ Hani^ T ^ community of 25 pet cent.— show certainly knew wj 

disadvantages against whatever cheers from the Tory benches. Government’s devolution propo- nga j nc t the title Scottish from 1966 to 1970. . lecttirer in tmHnn' were not at "fever beat," he said, were doing, 

military advantage may be claimed that the attitude taken sals, would lead people to think Assembly, and had also discussed The SNP candidate fs Mr. Altiinm* liberals hope to be able to per- Seventeen -minutes on 

oAriori hn the finvpmmpnt in rpsistina that th» TTnuw nf Tnrdii had mne »h& Keith Rnvov SO fln if Mr Tain , . T" u Lue .. V-° u&erv auv es ...... +v,„ nan.-eA n» rant nf wa* enoncrh tn 

v k “S r o piS TT7 „ tl Lord MeCluskey stressed that «mdidate, Mr. Donald Dewar jonrnS Xo'& Ei £5 Contrary to the general im- comedy. - 

*?® b - representation. Proportional r T o ,55i & Govermnenthad already ^.im^^p^tboS ^taai leaderm WandsworthSuSS? nression. race relations in Lam- . But if the 

to ananuon suaaemy tne nue the Government had already «. a member of tne Scottish 
of assembly, which was central .given careful consideration to all executive of the Labour Party, 

ion, race relations in Lam- But if Che casual listens 
—in spite of its immigrant have had doubts, the ca; 


bad augury. tion in the Bill zhight lead some taking led Lord Selkirk to with- 

Led by the Earl of Selkirk, a people in Scotland to think that draw the amendment 

^ F , ban 1 Lords ‘threatened Plea for 

deplored . Wales Rill’ jobless 

PaHiamena,r 1JU1 A PLEA for special help for the 

Correspondent %/ 333>917 whQ faad 


yesterday that workers should .. .. . „„ a „* year was made in the Commons 

nor he faeod with dismissal GOVERNMENT was yester- . He said that the Government yesterday. 

P°v be ta 5f a T-““ d-y accused by the Conservatives attitude was "We are the masters * ,, „ 

betause of ^ h ® lr oMry to use the Welsh devolu- now and we will take no notice Mr. Max Madden (Lab, 

2Sa. "^SL tt S± 0W w^ Je0 ' tion leSslation e as a back door of what the Lords decides.-^ fowerby) su^ested crash trmn- 

a plea for special help for the Thatcher reproof 
333,917 people who had been 
out of work for more than a 

Marine shipyard. «. WanlA _ u.-w +v „ .. ■ group not to field a separate can- episodes, -a dozen part ' 

Two parties are fighting the a J ^ / 5f n „Lr a * °! didate but to endorse him. with every fact, 

election as their first Paribfc- . Nonetheless, of the nine candi- Without a script, It wt 

meatary contest Mrs. Shiona ^ ^ dates who have already difficult to follow that” 

Farrell, a lawyer, working as „ f tilank announced they will stand, two Blaker’s opening demam 

an immigration counsellor is rtr-tPo^tn ^ blacks. Mr. Tony Bognes, dismiss^ of Mr. David, - 

standing for the breakaway 22k n? ^ a 26-year-old journalist,. will run Social Services Secret 

Scottish Labour Party and Mr. T«!S^rf? e , a ^K bunself fop the Socialist Workers’ Party, really directed against & 

Peter Poneous is the Sodallst %*%*?**** hav * ” on law and W Mi e Mr. - John Chase is the Wilson’s handSuT ? . 

Workers’ Party candidate. . M __ Socialist Unity candidate. aspects of the Norm,* 

y Particular attention wiU focus For the National Front Mrs. affair. . 3^ 

?? liberals campaign,' and Helena Steven will be fighting But Mr. Joe- Asht* 

• Mr. David Blunt a lawyer -and the seat So far. the Fropt has Bassetiaw), used the oni 

local resident will be trying to been conducting a very low-key to publicise the Gow 
hang on to the 12ff per cent the campaign. Marches in Lambeth payment of Increase- . ’ 

Liberals won in 1974, and to beat are illegal, under the two-month benefits this month. 

National Front firmly into ban imposed by the police on “My wife thinks he: : 
fourth place. political demonstrations in the a marvellous job” Mr • 

To maintain its share of; the London area, which expires on added, raising ’ MzT- - 
vote in the present depressed April 24. popularity rating. ■ ./i 

On BBC, the spjtfj - • 

Poll reveals doubts , 

• ‘ • • • ’ National Front 

about MPs’ role 

ilUUUl J.TJL1- *3 tvlt Stage fright as Mr, Tbhi ] n - nr.,*? : 

. a Labour left-winger,. r - v l * » 1 * - 

BY PHILIP RAW5TORNE ” .7 \ question o£ the neutin 1 

- ' Calm? The Prime - , ; r 

FEWER THAN half of the Speaker, though 13 per -cent reflected on his feelin . ’iWi ’ ! ; i 1 
people in the. UJC know the suggested he was a Member of rather like being a swiL 11 1 

tion able those views were. TowerTf “'This was 'utterly unacceptable ing or re-tr^ining courses for 

Lowering Commons questions, the House of Lords ■ to the Opposition, but it suited this category of jobless people. 

Mr. Callaghan declined to Ilr . ,, ‘ + . _ Wol£ia the Labour Party. He thought He said many were married men 

comment on tbe decision by B HL «£&£££ "Jf gtatt' foe 11 «" begmmrr d oftheir with dependent children, 

the National Union of Kail- the Welsh programme for the demolition of Mr. Albert Booth, Employment 

Answering Commons questions, the House of Lords. 


,a !‘ " eek Assembly .if be'beUeves that It r , m . rka bl e * hout . a _ t “ rd .? f 

members of the National harScMdedlLts“powOT. “““ . ^employed were 1% 

Front from their union. His decision then has to be JS^Hmis^and believed that the ° 7 ^ j3 >ec al employment Q |l 

But he added: “I deplore approved by the Commons and v WesSdLte? needs . been ttUUUl Xl 

utterly, and do not find it at the Lords. But. if there is a appointed to look into their par 

all acceptable, that people disagreement between the two HrSn^olead to dishSmony ^£’ 5 _f* peciaIj7 J0 ^ BY PHILIP RAWSTOR1 

should be dismissed from House of Parliament the ce ™“ ” leafl V? : n t ^ of - • 

their employment -because of Commons can go ahead and con- Mr. Dennis Skinner (Lab., FEWER THAN half 

their political views, however firm the decision alone. was strongly opposea oy mr. Bolsover) suggested that Mr. B ^ P 60 ?!® ™ the. UJC to 

objectionable they may be.” During the Committee stage of John Smith, the devolution Booth look at ^ Tribune name of their MP. accoi 

_ , ... .. the Bill in the Commons last Minister. He declared. Unce alternative strategy for a P° fl carried out by i 

Some professions, like the pigh^ the Tories moved an again, we see the Conservative <j ea iJL ^th longer-term unem- Research Centre. 

?° . j i?i ght t t0 he amendment which would prevent Party in a last-ditch attempt to nf 0 y^e Q t, rather than introduce The survey, conducted 

treated differently, but gener- House of Commons having preserve for ever and a day The “piecejne-Q measures.” BBC’s Nationwide prograi 

aliy speaking, said Mr. sole jurisdiction in the matter, power of the House of Lords. f be broadcast to-night, re 

Callaghan. this should be But the amendment was defeated He argued that the upper .~[ r ‘ wi d similarly widespread igi 

the rule and I hope people by a majority of 25 (170-145). House should not be in a posi- Jinced there bad to be policies mbs, THATCHER was yester- about Parliament itself - 

will accept it" Mr. Francis Pvm. the Conser- tion to block decisions f or dealing With both short- and jay accused by a Labour back- (w elector in ten thorn 

He was replying to Mr. Robert native devolution spokesman, ■ The clause in the Welsh long-term unemployment. bencher of “monopolising” a “ guillotine ’’ was a pern 

Adley (C., Christ church and accused the Government of a devolution legislation requiring Dr. Keith Hampson (C, Ripon) -Prime Minister's Question used in 1864 for MPs pere 


Poll reveals doubts 

1 • • 

about MPs’ role 

name of their MP. according to the Government who spoke on top but paddling like h ■ i | _ ■ 

a poll carried out by Opinion State occasions. Another 3 per neath.” He said that - n Tj • [■, j 7 

Research Centre. cent believed that' he was the rather not be pcoadT LLwivi.- 

. The survey, conducted for the man in charge of the Commons neutron bomb. ' ‘ 

BBC’s Nationwide programme, to microphones. And miscueing her>— 

be broadcast to-night, reveals a . ■ But even if a surprisingly Mrs. Margaret Thatcher - 
similarly widespread ignorance high proportion did not know him instead to expf 
AT CHER was yester- abo ut Parliament itself.- .how Parliament worked, 43 per Britain’s unempioyn^ 

ted by a Labour back- One elector in ten thought that cait. were convinced it did not worse than its induct 

of “monopolising” a “ guillotine ” was a penalty -last wirk welL ; petltors after four :- 

Ministers Qu^tion m jgg 4 f or MPs persistently /The 45 per cent satisfied with Labour Government N ' 

He was 


day accused by a Labour back- 
bencher of “monopolising” 
Prime Minister’s Question 

Lymington) who had said the flight into unicameralism.” The the Welsh Assembly to observe said he had grave doubts about Time. Mr. Eric Heffer, MP for ab sent from the Commons. Westminster’s performance was -it wasn’t Mr 

NUR’s decision could have Bill would give the Commons the national pay policy, was dropped the effecetiveness of the Man- Walton, called on the Speaker Though 52 per ceqt knew what SVper cent! -fewer than in the replied at length, be& 

serious implications if the Commons the power to overrule by the , Government last night power Services Commission and to hold talks with the party Prime Minister’s Question Time last poll in 1966. 

National Union of Journalists the Lords if the Government This brings tbe Wales Bill into Training Services Agency 
were to do the same, resulting thought that a decision by the line with the Scottish devolution courses in helping the long-term 
in political censorship. peers was inconvenient legislation. unemployed. 

ing attention- to ‘ net 






leaders concerned after the was— it was broadcast on radio , About a quarter knew that an Budget ' 

Tory leader had gone to the fo r the first time yeslerday-r-oue Sip’s salary was £6,270. But . The Tory leader, cor 
despatch box three times in the in ten again thought it was the other answers suggested a be persistent without . 
15 minutes set aside for qnes- Queen’s weekly quizzing of Mr. general belief that whatever the again demanded an e 
tions. Callaghan’s actions. .level, it was too high. of the unemployment f 

Less than a quarter knew that Asked' which of .five Jobs did ’ Canada and Italy ' 

tt.j . - ■ the second reading of a Parlia- the most good, for the country, worse plight, the Prim 

tvicmey campaign mentary Bill was a debate on its voters placed MPs a long way retorted, but he was 

A CAMPAIGN is to be bum- general principles. behind doctors and policemen utmost /to achieve 

ched to-day by Mr. David Forty-seven per- cent thought and only jnst above. local coun- international action to 

Ennals, Health Secretary, to it was the Itne-by-line examina- cHlors and solicitors. • the general recession, 
make people more aware of the - tion of a Bill^ and II per cent But the survey, conducted _ And, of course, tt 
need for kidney transplats. believed it was a repeat of a about a month ago. showed that next week wou id help 
Tbe Prime Minister hoped that debate for any MPs who had In spite of all the uncertainty Amid a noise that! 
the campaign would ensure missed it originally. about Parliament only la per threaten political violi 

that transplants of kidneys The best result in the poll cent were undecided About Thatcher countered a : 

after death could he made more was the coirect identification (rf which way they would cast their w ]evel tte score on 

easy a backbencher by 63 per cent vote at the next election. fho v sav 

of those interviewed. After eliminating them, the m,. ;.- leader - 

. . More than - half were also poll gave the Conservatives a elances with h 

,r»rrv mmniaint familiar with the role of the lead over Labour of 11 per cent 

1. The Chairman of the Board of Directors, 
Emirates & Sudan. Investment Co. Ltd., 
invites Tenders from competent contractors 
for the construction of 34 “ Thirty four ” 
Warehouses complete at Port Sudan (D.R. 
of Sudan) as phase one from the total 
number above. 

2. The Tender Documents “ in English only ” 
can be obtained from the office of the 
Managing Director of the Emirates & Sudan 
Investment Co. Ltd., 16 Bab ike r Bedri St, 
P.O. Box 7036, Khartoum, Telex 524 EMSU 
KM, Telegraphic Address: EMSU Khar- 
toum, during office hours against payment 
of L.S.100 (one hundred Sudanese pounds 
. = £145 US$290) non-refundable. 

3. Tenders will be accepted for 4 warehouses 

as a unit and Tenderers should deposit a 
sum of L.S.4000 (Four Thousand Sudanese 
pounds) or its equivalent in other convert- 
ible currencies either by certified cheque 
or a letter of guarantee from a reputable 
bank valid for at least three months after 
the closing date as a preliminary deposit 
in the name of the Managing Director, 
Emirates & Sudan Investment Co. Ltd., for 
each unit. Tenderers for more than one 
unit should multiply their deposit accord- 
ingly. . . 

Separate offers per unit for lighting and 
fire systems may be added as option. 

4. The successful Tenderer/Tenderers shall 
be asked to sign formal contract within two 
weeks after being notified of the acceptance 
zn writing and to complete the deposit to 
10% (ten per cent) of the total value of the 
contract either by a certified cheque or a 
letter of guarantee from a reputable bank 
valid for one year after handing over all 

_• works. Other forms of guarantee may be 
required for longer period. 

Any other plans for payment that may lead 
to the reduction of. the cost could he 
proposed by the tenderers. 

If the contractor fails to sign the contract 
within the specified time, he shall lose his 
right to recover the preliminary deposit. 

5. The preliminary deposit shall be refunded 
to the unsuccessful tenderers two weeks 

. after the firm award of the contract 

6. Tenderers shall state clearly the follow- 

a) The names-, qualifications, and experi- 
ence of engineers and technicians who 

will be responsible for the execution 
of the works. 

b) Examples of similar projects they have 

c) A detailed programme specifying the 
progress of the works and the time 
required for the completion of all works 
specified in the tender and shown in 
the drawings, as from the date of the 
signature of the contract 

d) A list of equipment and machinery in 
their possession necessary for execution 
of the works. 

7. The supply of all materials, equipment and 
machinery whether local or imported Acces- 
sary for the execution of all works is solely 
the responsibility of the Contractor. 

8. Tenders shall be valid for at least three 
months after the closing date mentioned 
in para (12) below. The offer may be based 
on the detailed alternative or for an 
accepted alternative to be presented in 
detail to the Managing Director. 

9. All information relevant to the tender 
shall be submitted in English Language. 

10. For imported items. The Emirates & -Sudan 
Investment Co. Ltd. will directly pay all 
insurance, clearance, customs and other 
Port charges. 

11. Foreign Currency will be paid directly from 
The Emirates & Sudan Investment Cp. Ltd. 
reserves with The National Bank Abu 

12. Tenders should bear the prescribed stamp 
duty and should be addressed in s ealed 
envelopes bearing the words (TENDER 
Managing Director, Emirates & Sudan 
Investment Co. Ltd. and should be 
delivered to the Tenders Box at the Com- 
pany’s Head Office, 16 Babiker Bedri St, 
3rd Floor, Khartoum, Sudan, not later than 
12.00 Noon Sudan Time Tuesday the 20th 
Of June 1978. 

13. Any tender which does not comply with 
any -of the above-mentioned requirements 
will be rejected. 

14. The Chairman of the Board of Directors, 
Emira tes & Sudan Investment Co. Ltd, is 
not bound to accept the lowest or any other 

Lorry complaint 

AN MP yesterday demanded 
an Immediate Government in- 
quiry -into ways in which 
Japanese lorries are entering 
Britain by a method which, he 
alleges, evades the voluntary 
agreement on Imports. Mrs. 
Gwyneth Dunwoody (Lab., 
Crewe) claimed that firms in 
the Republic of Ireland were 

Election warning 


Mr. William WfciteJaw 
“ She obviously thre 
got through the Prime 
guard,” said the comnu 
Mr. Callaghan mop] 
few complaints from 
Emery about the nmn 

And the scriptwr 

Gwyneth Dunwoody (Lab., SPITE OF the deadlock in new financial year. But the tax And the scriptwr 
Crewe) claimed that firms in Budget discussions between the measures envisaged by Mr. Denis doubt, went to prepare 
the Republic of Ireland were Government and tbe Liberals. Hefcley will not be revealed -to gripping episode. 1 
buying “knock-down Japanese Mr David Steel, the Party MnTfcters until the eve of his # Lady Flowden, cht 
lorries,” which were complete leader, insisted yesterday, that April 11 Budget statement the Independent Bn 
but required assembly. the absence of agreed Finance The Government says that Authority, called for i 

Bill proposals would not neces- major defeats at the hands of a “the BBC monopoly of 
D r, ,■«!- sarily mean the end of the pact- Libqral-Tory alliance in Com- reporting of Parlian 

Koaos pledge Mr. Steel, who. with Mr. John mittfe proceedings to bring hi certain areas not rerv 

A MORE rigorous approach fo Psrdoe. the Liberal ■ economic far bigger direct tax cuts than dependent Local Radio 
priorities within the planned sookesman, will be presenting the {2bn. to 2J>bn. believed to . ’ Her statement, issui 
investment of £300m. on trunk the party’s package to the Press be planned by the Chancellor day as the Parflamentf 
roads and motorways was pro* to-day, was speaking after re- could- not be tolerated. casts began, said: "Ini 

mised yesterday by Mr. W1I- newed sabre rattling that serious • Liberal News warned- In an Radio News Is well am 
liam Rodgers. Transport Secre- disagreement could precipitate editorial yesterday that failure prepared and looking f 
tary, who said he would give a General Election this summer, by the Chancellor to come up bringing debates, ques 
emphasis to vital industrial A Cabinet meeting yesterday with a package closer to Liberal committees from. Parlia 

mised yesterday by Mr. Wil- 
liam Rodgers. Transport Secre- 
tary, who said he would give 
emphasis to vital industrial 

routes and schemes with high- more or less completed work on 

environmental benefits. 

public expenditure plans for the election. 

s could mean a June the daily lives of m 


Tanker procedures 
to be reviewed 


THE GOVERNMENT is to review be studied fully to see if further 
the procedure under which oil international measures were 
tankers transfer cargoes off the necessary. 

English coast, following the Mr. Mills had asked whether 
Amoco Cadiz disaster. - the Government was satisfied 

This was announced by Mr. that many supertankers should 
Stanley Clinton Davis, Trade be fitted with only one propulsion 
Under Secretary, in a Commons screw and were, therefore, help- 
answer last night. less if a major breakdown 

He told Hr. Peter Mills (C., occurred. 

West Devon) that tbe procedure Mr. Davis replied: "Because 
had been under careful can- nearly all large tankers are 
sideratkm by Government depart- fitted with single rudders, single 
meats concerned with the local screws provide greater manoeu- 
autborities. But he was prepared viability than twin screws at | 
to look at it again. slow speeds. • 

Mr. Mills had asked the Mini- “ While the lessons to be leamt 1 

ster to review the whole pro- from the Amoco Cadiz disaster i 
cedure under which oil was will be studied fully, it would \ 
transferred from one tanker to not be practicable to convert 
another off the coast of the existing tankers from single to 
South-west of England. twin screw, nor would thin 

Mr. Davis assured him that the guarantee tha too tanker would ! 
cause of rudder failure in the ever be left without - proper i 
case of the Amoco Cadiz wouid power for propulsion.” ! 


Study scheme extended 


THE CLOSING- date for applies- In a Commons written answer, 
I tions for aid for feasibility Mr- Cryer said that of the 
| studies into collaborative £100,000 available, the total 

Mrangemeots among small firms kernel 

i UndS . SK? wT d «"SiR 
j told the Commons last night March 31 this year. 


APRIL 14 1978 

THe Financial Times is proposing to pub) 
a Survey on Gibraltar on Friday April 

For further information concerning t 
survey and advertising rates please cont 

S uzann e Ralph 
Financial Times 
Bracken House 
- 10 Cannon Street 
London EC4P 4BY 
Tel: 01-248 8000 Ext 201 



Tie content and publication dates of f 1 
•Financial Times ^re subject to. change at me 
of .the Editor,. - 


Times Wednesday April 5 1978 


. Fr z z. - — Radio data Metal test for 


-sized unit to 
big engine 

; - tfSing. 

CONTROL of three This equipment is being shown 
.very different gas tur- for the first time next week at 

a s .been successfully the American' Society of 

“ nonst ^ted by “Hauler Sid- Mechanical Engineers gas tur- 
• J tjeley Dynamics Engineering bine conference at Wembley. 

- ■:sc. vhat is the same elec- HSDE has been _ working 

t *-ie^v j "Omc s arr ay and changing only towards this present achievement 
;■* ' ■ 5 ir le tns taiction set for some time. It has -20 years 

■: Engines involved - start with experience in building electronic 

T - ; v *a>e small L400 bp Gnome turbo- *** turbin « controllers and 
^aft power plant for helicoDtera. ,ts . analogue electronic control 
next step up being- a vect <*3 “*“ b £* ve accumulated over 

- . ^urot turbine, believed to be of 3 -® m * hours. •• 

. . “ type used in the Harrier— ' *ts new digital contrOjer has 

^ 31 : >e company j s not permitted applications, in industrial, 
disclose — up to the laSe JP*™ aviation gMtnrtinM. 
' Olympus TM3B marine prop® Built mto the package are-self- 
_ gj. on package. This will provide ch ? kin 8 \touVm* 80 that control 
V; a :-=a 20,000 to 25,000 shp depend P*$* en i sensors can be 

Qa JSSk»« on engine MnK thoroughly tested pnor to opera. 

.. - tion. thus ensuring high plant 

Ha wker development engineers availability, primary. function 
: V^ ve P^t , tiie whole control sys- of the controller is to optimise 

: - r: : : " !lTl 5frX? . V 1 ? n 'aviation package plant performance. At the same 
a ■ tuch is about the size of a com- time it can provide plant condi- 
innhmMh.Wb - - ~ng and recording 

need to go for 

■- ’D c in a standard 19 inch indus- 
•P^r^da 1 rack. 



HSDE, Manor 'Road. Hatfield. 
Herts. Hatfield 6S234. 


hi _ 
Mi fe r ! 


;Lofting for 


BSKA is able to produce 
■ repHcaa of ships' lines and tem- 
plates to any scale — usually full 
scale or 1/10. Body plans to 2/10 
scale and -full scale scrieve 
boards can be produced in panels, 
depending on the size of ship. 
These capabilities are attracting 

•-.■ ~ - .... . interest among shipyards which 

: ““HEW SHIPBUILDING methods already have optically -controlled 
?ave undergone more radical machines^ 
v“.Y_- thanges in recent years than The planned introduction of 
19® involving the cutting of BSRA’s ‘ GOLD ” system on a 
i .T.:; chips’ plates — thanks, almost mini-computer will enable small 
‘Entirely ,to the advent- of com- and medium size builders to 

numerical parts 
with only moderate 

irect plate cutting or for pro- BSRA, Wallsend Research 
curing a template. Station, Wallsend, Tyne and 

*-->•«,; Capital costs are, however, rob- Wear NE28 BUY. 0632 625242. 

• H-.i^banti'al and Small and medium 
-:: ^ized yards have been unable to 

7 ■ ifoke full advantage of some of 
-i.' P^ie new developments in ship- 
- vjrilding technology. In computer- 

. ’r.:: ; j?ased numerical, lofting tech- 
• piques, however, the British 

r> -vhip Research Assocd-ation is now 
" : ' ■; :Q>le to, provide a service. and so 

• >lp such yards to close the tech- 

‘ ' i*»logy gap. 


LOOKING a little like a portable 
transistor radio, a data terminal 
put on the market by AEG-Teie- 
f unken allows -two-way trans- 
mission to a central data 

The radio section can work in 
the SO, 160 or 460 MHz bands with 
20 or 25 KHz channel spacing, so 
that up to 32 w portables ” can be 
in communication with the cen- 
tral point using selective calling. 

Each portable has a numeric 
keyboard which is used to key 
data into a built-in memory, and 
the portables are then polled in 
sequence by the central station, 
each sending 90 bits when 
addressed, with transmission at 
either 1200 or 2400 bits/sec. With 
32 outstations in the system this 

gives a calling-off cycle time of 
10 and 6.5 seconds respectively. 

Each terminal also has a 
small, single line display on 
which 14 characters can be dis- 
played— either what is being sent, 
or what has been received from 
the central station— for example, 
an instruction. The system allows 
for the number of terminals in 
use, but removes from the call- 
ing-off cycle those from which 
there has been no data sent for 
some time. 

The fixed station radiates six 
watts of power while the port- 
ables emit one watt making the 
system suitable for docks, air- 
ports. freight terminals — wbere- 
ever line communication is not 
available or is unsuitable. 

If necessary the terminals can 
be used as radio telephones. 

More from AEG-Telefunken 
(UK). 202 Kensington Church 
Street London W8 4DP (01 299 


liquid gas runs 

LIQUID nitrogen, supplied by 
the BOC Gases Division, has 
been used to test operation of 
low temperature loading arms to 
be used for the loading of nat- 
ural gas liquids (NGL) into tank- 
ers at the Phillips Norway 
Group's Ekofisk North Sea oil 
terminal at Teesside. 

BOC had been invited to put 
forward proposals for simulating 
operating conditions for the load- 
ing arms, pending the availabi- 
lity of various liquefied petro- 
leum gases which are scheduled 
to be produced at the NGL pro- 
cessing plant at Seal Sands. A 
test method was developed by 
BOC in collaboration with Par- 
sons, Brown and Harris, consult- 
ing engineers to Phillips Petro- 
leum Company, operator of the 
Teesside terminal. 

The loading arm selected for 
test was one designed for the 
transfer of refrigerated liquid 
ethane (operating temperature 
minus 97 degrees C). 

Liquid nitrogen at minus 196 
degrees C was chosen for the 
tests as being the most readily 
available substance able to sus- 
tain a low enough temperature 
throughout the whole of the load- 
ing arm system to match that of 
liquid ethane at all crucial 

Apart from the speed with 
which liquid nitrogen could be 
expected to cool the loading arm 
system to an extreme low tem- 
perature and its ease of distri- 
bution, a third factor is that, 
being inert, nitrogen is com- 
pletely safe to use under ex- 
perimental conditions. 

The arm, constructed from 3j 
per cent, nickel steel, has an 
operating temperature limit of 
minus 100 degrees C. 

In order to ensure that the 
loading arm temperature during 
the test was contained within the 
permissible test limits, a closed 
circuit system was arranged by 
manifolding two adjacent load- 
ing arms at the jetty head and 
at the .tanker couplers. BOC 
engineers carried out the low 
temperature tests using a special 
forced draught vaporiser. 

Liquid nitrogen, injected from 
a BOC road tanker into the 
vaporiser unit was turned into 
cold gas. the temperature of 
which progressively rose as it 
passed through the closed cir- 
cuit and returned to the vapor- 
iser unit. 

Thermocouples measured the 
temperature at specific points in 
the loading arm system and the 
rate of nitrogen injection was 
manually controlled to ensure 
that the loading arm tempera- 
ture was maintained within ex- 
perimental and safe operational 
limits. When the required tem- 
perature had been reached, the 
circuit was pressurised using 
gaseous nitrogen from cylinders. 
The loading arm was moved 
through part of the operating 
envelope and all joints were 
checked for leaks. 

Kier is the main contractor to 
Phillips Petroleum Company for 
building the jetties. The loading 
arms were fabricated by the 
National Supply Company. Stock- 

BOC on Rotherham 2161. 




Integrated hw 
telephone and fPW 

Gass Electronics Limited 
Pfwusfgliaui 62SB for inform trn 

More power for business users 

Handling of liquid hydrocarbon gases at very low tempera- 
tures — typically minus 162° C for natural gas — places major 
stresses on the pumping equipment employed. Siemens has 
developed the submersible motor-driven pump shown here 
and indicates that it is the first such unit produced in Europe. 
Collaborating with Rheinhuette Wiesbaden, Siemens designed 
the unit for a capacity of 35,000 cubic feet per hour, operating 
inside the liquid gas tanks on .board LNG carriers. It also 
tested it to withstand rough weather and other forms of 
mechanical strain, apart from conferring on it ability to 
operate without trouble at extremely low temperatures. 




SEVEN YEARS of research and 
development by VP Hnntas AG 
lie behind a system' of la-water 
survey which uses the latesti 
oologies in ultrasonie- tiiicWiess 
measurement and close-up 
tone colour TV recording forfthe 
continuous survey of the : 
i-anff bottom of a vessel with&ut 
dry docking. . ' 

The .system is virtually self 
contained and cuts to a minimum 
the need for divers. The sub- 
merged sides and bottom of the 
hull .are surveyed by remote 
control to classification standards 
by TV cameras while at the same 
time an . ultrasonic probe con- 
tinuously measures and records 
the plate thickness as the vehicle 
progresses, along the huIL The 
information obtained is relayed 
to the surface Where observers on 
deck dr on an accompanying 
work vegsel can simultaneously 
view oh monitors both long- 
range and close-up displays. 

• Approvedat present by Bureau 
Veritas; this new system of in 
water survey will be on sbow at 
the Bureau Veritas stand at the 
forthcoming ' u Ship care 78" 
exhibition in Hamburg, April 

VP Etimtas, Dolphin Works, 
Crowhuirst Road, Hollingbury, 
Brighton' 6. 0273 561376. 

PHILIPS Data Systems is to 
launch two new computer 
systems in June — the first major 
announcements from the com- 
pany since 1976. 

The two new machines are the 
P330. to be the most powerful 
member of the P300 electronic 
accounting and .visible record 
computer range, and the P430, a 
new model in the larger P400 
small business systems range. 

In Amsterdam this week, Peter 
de Vos, managing director of the 
Dutch electrical and electronics 
giant’s computer division was 
aggressively confident of its 
recent achievements: “Let there 
be no doubt that Philips is con- 
tinuing in electronic data pro- 
cessing, io spite of the rumours 
circulating after the collapse of 
Unidata and since, in certain 
quarters.” . 

- Unidata was a shortlived joint 
venture undertaken in 1973 by 
Philips with Germany’s Siemens 
and France’s CI1 in a bid to pro- 
duce a European answer to the 


U.S. dominance of the large com- 
puter market. Unidata failed, de 
Vos said, because “We miscal- 
culated the political issues.” 

The current rumours he 
referred to are understood to be 
spread by salesmen from rival 
computer makers. 

After Unidata, Philips chose 
to concentrate on the market for 
office computers — a term which 
it claims to have coined — with 
impressive success. Now, Philips 
has over 75200 installations 
worldwide, with an average of 
15 per cent of the market in 
each of its countries of opera- 
tion, where “we are always in 
the top three,” says de Vos. 

Of the new system, the P330 is 
a big brother to the P310 and the 
P320, and can handle input and 
output from the flexible mag- 
netic discs of the P310. the mag- 
netic ledger cards of the P320 — 
or both. This combination is 
claimed by Philips to be unique. 
Prices are expected to start at 
£ 12 . 000 . 

Easier to open the pack 

a T--J 


* . S' 


IFSSEC is the world's major event devoted to fire 
prevention# security and crane prevention, and health 
and safety at work- * 

Over 260 of the world's leading manufacturers will be 
exhibiting thousands of products and services designed 
to combat fire, theft/ vandalism, accidents and health 
hazards at work- . ; ' 

IFSSEC is supported by the relevant professional’ _ 
bodies. Government Departmentsarid trade assoctaifons- 

The n=SSEG Exhibition is supported by a major 
international conference. Leading international speakers 
— conference subjects of vital and topical interest — 
simultarisou& translation in English, French, German, 
Spanish aid Italian. 

For a conm5neiTtwY &d^ n n ti ^ et [ - 
end a copy of ttw Coulomnce Programme 


THOUGHT to be Britain’s first 
“E". flute-sealed carton which 
can b'e opened by means of a 
tear, strip, a design produced 
by Corrugated Products, King 
Edward. Park, Lockerbie, bas 
been developed for large deter- 
gent cartons from E10 size up- 

But the tear strip carton is 
thought to’ have applications in 
other areas including confec- 
tionery and the whisky industry. 

The nonfail tear strip will be 
available in two forms. A thin 
poly strip located on the inner 
wall of tine carton cuts througb 
the carton when pulled by a 




makes floor 

RESIN flooring systems based 
on an epoxy formulation have 
been extended with a new 
admixture which can provide a 
surface of extreme hardness. 

The product, calcined bauxite, 
is broadcast on the surface of the 

finger flap or, the finger flap can 
be used to tear away a per- 
forated section of the wall. In 
both instances, the material is 
parted on three sides only so 
that, when opened, the carton 
retains a hinged lid. the un- 
opened edge being creased for 
this purpose. 

In many instances, the costs 
of the new carton will be no 
more than conventional cartons. 
Where additional costs are in- 
curred, they will be less than 
5 per cent, of the basic carton 
cost • 

Corrugated Products, King Ed- 
ward Park. Dockerbie. Dumfries- 
shire, Scotland. 057 62 2292. 

epoxy resin which is then over- 
sealed before it cures to form a 
monolithic layer. 

Product characteristics include 
nil moisture absorption; excellent 
resistance to crushing, abrasion, 
impact and chemical attack; and 
unusually good and lasting skid 
r esi stance . 

Calcined bauxite bas a value of 
9 on the Mohs Scale, a figure only 
exceeded by diamond which is 
rated at 10. 

Th. Goldschmidt, Initial House, 
Field End Road, East cote, Middx. 
HAS 1RY. 01-868 133L 

In the bigger P400 range — 
rivals include the ICL 2903 and 
IBM System/34 computers — the 
new machine was announced as 
the P430, but in the U.K. it is 
likely to be called an enhanced 
version of the only model cur- 
rently in the range, the P410. 
launched in 1976. 

- Other European countries have 
for some time sold two other 
machines In the range, the P440 
and P450, but according to Data 
System U.K.'s managing director. 
Dr. Richard HorsneJL these were 
not deemed suitable for the UJv. 

The P400 range ha6 always 
been promoted as a bridge 
between office computers and ex- 
pensive mainframes: Horsneil 
described the appeal of the Dew 
computer as: “ It allows users to 
grow from .a. single workstation 
magnetic ledger card system to 
a seven terminal network. This is 
the only system available which 
allows this.” 

P430 — " of enhanced P41D — 
prices will start at about £19,000. 


May be used 
in fire-risk 

FLAMEPROOF heat detectors 
manufactured by Graviner have 
been given approval for use in 
hazardous areas by the Health 
and Safety Executive. 

Designed for operation in 
contaminated atmospheres in- 
cluding those with hydrocarbon 
vapours, the four detectors are 
particularly suitable for use in 
the petrochemical industry. 

The approved units are avail- 
able with either noimaMy open 
or normally closed contacts and 
can be lug mounted or screwed 
into. a 1 BSP bush. 

The detectors are adjustable to 
operate over a temperature 
range of 0-300 degrees C. They 
are normally supplied factory 
set to customers’ requirements, 
but can be adjusted in-situ, says 
the company, which has its 
headquarters at 448 Basingstoke 
Road, Reading. Berks. (0734 


of fouling 
saves power 

SIGNIFICANT energy savings in 
refinery and 'petro-chemical 
operations are reported by Esso- 
chem Europe affiliates for an 
energy conservation system they 
are now actively promoting. The 
system involves plant simulation 
and antifoulants marketed under 
the Corexit brand. 

Essocbem’s method measures 
thermal fouling of specific feeds 
and permits selection of the 
most appropriate antifoulant to 
remedy the problem. The test 
simulates plant stream history 
and takes into account critical 
process variables such as tem- 

perature, feed composition, anti- 
foulant activity and concentra- 
tion. Also, it permits meaningful 
data to be collected in a brief 
period of time, even for low- 
fouling streams. 

When used an units which have 
z heat exchange function, anti- 
foulants can reduce the build-up 
of solid waste matter which 
would otherwise reduce beat 
transfer coefficients by up to 70 
per cent. Less fuel is therefore 
needed . to attain the required 
operating temperature. In addi- 
tion to energy savings, use of 
these products can yield two 

further significant benefits: 

higher effective capacity and 
lower maintenance costs through 
longer intervals between turn- 

Esso Chemical. Arundel 

Towers. Portland Terrace. 

Southampton S09 2GW. 0703 
34191. ■ 




IN SPITE of the inroads made 
into the mechanical switching 
market in recent years by solid 
state techniques, there remains, 
according to Pye Electro-Devices 
a strong demand for small, 
electromechanical multi-switch- 
ing devices that are relatively 
cheap and can offer a high in- 
sulation resistance between input 
and output. 

The company has therefore in- 
troduced a ratchet-driven three 
level uniselector contained in a 
can 1£ inches in diameter and 
three inches tall. It will per- 
form at least 24m. steps without 
adjustment or maintenance and 
in view of this has been given 
complete protection by enclosing 
it in a metal casing spun into 

The device is mounted using 
a jack which is retained in posi- 
tion with a nut, giving easy elec* 
trical and mechanical connection. 

With three levels each of 12 
outlets, the switch can be used 
for decade counting and, 
because the moving parts are of 
low mass the uniselector will 
self-drive at between 85 and 130 
steps per second. 

More from the company at 
Exiling Road, Newmarket, Suf- 
folk CBS 0AX (0638 5161). 

High power 



DEVELOPMENT OF what is des- 
cribed as the most efficient power 
transistor is claimed by General 
Electric Corporation's Research 
and Development Centre at 

One of the first applications of 
the transistor will be in a pair 
of experimental electric vehicles 
now being developed under a 
contract from the U.S. Depart- 
ment of Energy. 

GE says the new transistor is 
capable of switching 400 volts 
and 350 amperes on or off in less 
than one-millionth of a second. It 
requires an external drive of one- 
tenth ampere to operate the 
switch. The device is a silicon 
chip measuring j by l inch, 
mounted in a copper heat sink. 










PHONE: 0222 868416-7 TELEX: 497580 




April 10 & U 

The Financial Times" in conjunction with World Accounting Report, is 
organising a conference, “Business and the European Community 
Directives’ ", at Grosvenor House London, on April 10 & 1 1 1978. 

To clarify and assess the European Community’s action on the 
harmonisation of company law and accounts, the Financial Times feels 
that now is the time. to call this conference’ because as yet, generally, 
there has been litfle study of its impact upon the conduct of business in 
Britain and other member states. 

The conference will provide practical guidance on this important and 
complex subject The list of distinguished speakers and their topics 
win include: 


Mr. Tom Waite, CBE 
Partner, Price Walerhonse & Co. 
Vice-President, Gronpe d*Eta des 
des experts cdznptables de la CEE, 
Chairman Designate of the Accounting 
S tandar ds Qwwmife ft 

The Rt Hon. The Lord Mais of Walbrook, 

Member of the House of Lords’ Finance 
Economics and Regional Policy Committee 

Mr. Stanley Clinton Davis, MP 
Parliamentary Under Secretary 
of State for Companies, Aviation 
and Shipping 

Mr. B. dUbers 
Chief Accountant 
Commission des Operations 
de Bourse, Paris 



Mr. Hit Hutton 

Formerly Director of F i nanci al 

Institutions and Taxation 

Commission of the European 


Professor], van Hoorn, Jr 
Managing Director 
International Bureau of Fiscal 
Documentation, Amsterdam 

i To The Financial Times Limited, Conference Organisation, 

I Bracken House, 10 Cannon Street, London EC4P 4BY. Tel: 01-236 4382. 

Telex 2I34Z FTCONF G 

9 please sentf me further details of BUSINESS AND THE EUROPEAN COMMUNITY DIRECTIVES 





■n T 



Financial Times Wednesday April 5 -1978 


David Fishlock reports on why Merck is launching its drug for the 1970s in Britain 

The ‘better aspirin’ that may cure 

a drug giant’s headaches 

MERCK. Sharp and Dohme, the 
U.S. - based pharmaceutical 
group, has not had a big com- 
mercial success from a new 
drug discovery since the 1960s. 
Yet so confident is its manage- 
ment of the outcome of a re- 
search programme on which it 
will spend about £S0m. this 
year, th3t a regular topic of dis- 
cussion is the risk of “product 
indigestion” — more innovations 
than it can comfortably manage. 

Executives speak, for ex- 
ample, of new vaccines that may 
eradicate pneumonia. heDatitis, 
even tooth decay. They hint at 
a new motivating agent “that 
may arouse people quickly from 
a deep stupor;” and even a drug 
that may “ cure ” obesity. 

Ideally, says Mr. A. E. 
(Barry) Cohen, president of 
MSD International — which 
accounts for almost half MSD’s 
sales — the company needs one 
big success every decade, and 
one or two important new drugs 
on average every year. He be- 
lieves the big one for the 1970s 
will be Dolobid. the new 
anal gae sic, announced yester- 
day. which MSD plans to make 
and market worldwide from 

Cohen, 41 and Indian-born, 
sees Merck as future market 
leaders in pharmaceuticals. 
Tr day it ranks second in sales 
to Hoechst in the most recent 
Chemical Ins.ght league table 
of leading producers, having 
overtaken American Home 
Products in 1976. It reached 
this position, he says, by taking 
certain key management de- 
cisions over the post-war years. 

One was to be a research- 
based group, genuinely search- 
ing for original products. 
Another was to move from fine 

chemicals — which Merck was 
in originally — to pharmaceuti- 
cals by buying the drug com- 
pany Sharp and Dohme in 1953. 
A third was to concentrate 
almost exclusively on ethical 
drug products. Tempting 
though they ean be commer- 
cially, says Cohen, over-the- 
counter medicines and “fringe- 
medicine” products such as 

slowness of the bureaucratic 
process for drug licensing in 
the U.S., which can delay a 
launch by four or five years 
compared with such countries 
as Britain and West Germany 
(where MSD’s last drug was 
launched). Nevertheless, they 
stress, Britain is no “ soft 
option” in terms of drug regu- 
lation, but a powerful example 

Morson and Son, to manufacture 
diflunisal, the new analgaesic 

Mr. Nicolo Pignatelli, Cohen’s 
new deputy, and recently 
recruited from r unnin g Gulf 
Oil's international operations 
from London, lias been a long- 
serving member of an overseas 
panel advising MSD on inter-, 
national relations. Pignatelli 


76 (7S) 




76 (75) 






Hoechst (W. Ger.) 




Rhone-Poulenc* (F) 




Merck & Co. (U.S.) 




Takeda (Jap-) 




American Home Prod. (US.) 




Schering-Plough (U5.) 




HofFmann-La Roche (Switx.) 




Squibb {US.) 




Ciba-Geigy (SwTtz.) 




Johnson & Johnson (U.S.) 




Bristol-Myers* (Ui.) 




Sterling Drug* (US.) 




Pfizer (US.) 




Glaxot (UJC.) 




Warner-Lambert (U.S.) 




Abbott (US.) 




Bayer (W. Ger.) 




Beecham (U.K.) 




Sandoz (Switz.) 




Schermg AG (W. Ger.) 




0i Lilly (U.S.) 




Akzo (NL) 


12 (15) 

13 (13) 

Boehringer-lngelhehn (W. Ger.) 
Upjohn (US.) 

* Estimated, t Indudes food. 





Cyanamid (U5.) 



Cbcfnkof JiwJeht, No. 140. December, 1977. 44, 

Tke Keep, 

6/oeUeetft. London SE3 OAF. 


toothpaste and hair treatments 
merely dilute the innovative 
effort Last year MSD sold its 
Cal go n consumer products busi- 
ness to Beecham for £40m. 

But why Britain as the 
launchpad for a product he 
rates as importantly as Dolobid, 
the drug MSD invented to re- 
place aspirin? Are Britons, for 
whom 27m. NHS prescriptions 
are written each year for pain- 
killers (a £24m. market), to be 
the guinea pigs for the latest 
discovery of Merck’s American 

MSD executives claim quite 
different motives. One is the 

to the regulatory agencies of 
other counpries. 

The second reason for select- 
ing Britain is that rt accounts 
to-day for about one-third of 
its sales in Europe; is MSD’s 
longest-established overseas 
operation— just 50 years — and, 
moreover, MSD is a company 
the National Health Service 
recognises as an important 
source of original medicines. 
Executives cite the fact that in 
1976 Dr. David Owen, then 
a Minister at the DHSS, person- 
ally announced plans to invest 
£15m. in a new plant at the 
Ponders End factory of Thomas 

sees MSD as a multi-national 
which is well-tolerated by the 
Government in Britain, where 
any serious threat of nationalisa- 
tion of the drug industry has 
receded beyond the horizon. 

Merck believes that this is 
the first time a foreign drug 
company has chosen Britain 
from which to launch a major 
new product Initially, it plans 
to import the raw material 
from its Stonewall, Virginia, 
plant for a seven-stage synthesis 
which, it is estimated, will add 
about 30-fold to its value. 
Britain will be responsible for 
worldwide supplies of what, in 

Before you judge your staff, 
make certainyou ve got it right 

What's happening? 

The despatch department ran 
out of stamps before the last post 
The chief clerk took two days to find 
an outstanding invoice. 

You may feel you are the only 
without his I 

person without his head in the sand, 


The head of the despatch 
department has been screaming out 
fora new franking machine.And 
your chief clerk, if only he could 
pluck up the courage, would insist 
upon a proper filing system. 

The truth is that people work 
better when they are getting a 
charge out of their environment 
And when they are dealing with 
time-saving, hassle-free equipment 

Roneo Vickers can help you get it 
right Right around the office. 

We can help you improve the 
environment with Roneo Vickers 
chairs, desks, furniture and 

We can also give your staff the 
tools to do a better job . . . copiers, 
duplicators, storage and filing 
systems, business forms and 
Neopost mailing equipment 

Right around the office. Right 
around the world We're getting it 
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You get it right . . . and so will 
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find out more aboutthe Roneo Vickers tang*, 
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x-vi -;X : 

h ■■ X'-v-ijS! v ■■ •'•'*. -v W-W„4-”jgi v".j 

Cohen’s view, ** could become 
one of the major products of 
the industry in the next few 

Dolobid, although the result 
of a deliberate search for a 
pain-killer free from the side- 
effects o£ aspirin for those 
obliged to take several doses a 
■day, wiU not in fact oust aspirin 
and other over-the-counter anal- 
gaesics. For one thing, it will 
be available on prescription 
only — as indeed, states Cohen, 
would aspirin be if it were dis- 
covered to-day. For another, it 
will be much more expensive 
than rival painkillers. And a 
third factor is that MSD admits 
that its new drug does not have 
the powerful anti-pyretic (tem- 
perature-Iowering) properties of 

Even so, what MSD claims 
it has discovered in a search 
that began in 1954 is u a better 
aspirin'* for. those people who 
suffer from chronic pain — from 
rheumatism, arthritis, etc. The 
scientists say it is four times 
as potent, with a longer half- 
life, and much less of an irri- 
tant — “everything we had hoped 
for.” People can take it over- 
night and wake up free from 

Dolobid, however, is not 
typical of the mainstream of 
Merck's research effort to-day. It 
only ameliorates the symptoms 
of disease. Dr. Roy Vagelos, 
president in charge of research, 
claims that MSD probably does 
more research in preventative 
medicine to-day than any other 
drug company. A former uni- 
versity professor who had 
“ never made a drug,” 
Vagelos joined MSD only three 
years ago, inheriting one of the 
oldest drug industry research 
efforts — it began at Merck in 
1932. The big innovations that 
interest Merck are not achieved 
by two-man units, he says, but 
by “critical masses” of the 
order of 250 people. He directs 
about nine teams of this size, 
engaged in what be calls “basic 
targeted research.” It requires 

dose inter-action between many 
disciplines to design a drug with 
the specificity demanded to-day' 
The targets, says- Vagelos, are 
tough but self-evident— “recruit- 
ing the best people in the world 
is really my problem.” 

Serendipity— the world Wal- 
pole invented for the faculty of 
making happy discoveries by 
accident — is a word- often heard 
around Merck’s two muin re- 
search centres, at Rahway, N^rj 
Jersey, and West Point. Penn- 
sylvania. Between them, ' the 
two laboratories account for 
about 80 per cent of MSD’s 
research effort. Serendipity 
steered the scientists from, a 
drug that might have prevented 
malaria but proved too toxic, 
to the first of its animal health 
products — a business that 
reached 15 per cent of sales 1 
last year. 

In spite of a large programme 
on antibiotics there is general 
recognition at MSD that anti- 
biotics will ‘ never prevent 
disease. Ultimately the organ- 
isms causing disease, will 
acquire immunity- to every anti- 
biotic. Vaccines, Merck 
agement firmly believes, 'are a 
much more promising quest. 
But here above all a big team 
with many different scientific 
disciplines is essential Vagelos 
has about 11 kinds of vaccines at 
various stages of research- or 
development, for bacterial - as 
well as virus diseases. • 

Success can bring its own 
problems for researchers. . Ohe 
is the “ development trap, 
when the research team 
becomes so captivated by the 
problems of developing a dis- 
covery into a new product— a 
lengthy process which these 
days can also demand much 
first-class science — that it 
neglects the more basic search 
for new compounds and new 
mechanisms for combating 
disease. “Our solution,” says a 
senior bacteriologist “ is to set 
the research far enough away 
for people to have time to 
think.” He extricated his team 
from one development trap by- 
setting up a new research group 
3,000 miles away, in Spain. 

Another trap is to expand re- 
search facilities faster than the 
research management can 
accommodate without disrupting 
the research programme itself. 
For that reason MSD is treading 
warily in planning its next big 
research centre. But one deci- 
sion has already been taken, 
says Barry Cohen — the next big 
laboratory will be in Britain. 

a raw nerve 

THE LAST thing the galaxy of 
top. businessmen and designers 
expected from the “ little 
woman”— as she described her- 
self— was a series of searing 
blows below the belt A few 
minutes later heads were 
shaking, in irritation,- or bowed 
in pain, as their illustrious 

tile product seem an nwitp- 
tant area for top znanagmpa 
she complained — tfe* 
exempting her own ' -otgam 
tion from such blame, tv; 
with committees, sub-coma 
tees and the attending 1 of an 
ings with. Government dept 
ments, there was little time j 
for the chief .executive “to 
effectively accountable for 
only thing in the long nuri 
really matters,” Mrs. Robin 

- Later in her speech she j* 
have touched many a raw nc 
with her call for a looses 
of “the reins of incesto 
administrative technic 
which produce little but a- 
for poll ticking,” so that . . ! 

m a n agement could ins ' * 

“ concentrate! on the shape .v. " 
things to come.” - ^ 

: *- ’■ 


Helen Robinson: “ It’s just like* 
Alice in Wonderland *» 

owners considered the all-too* 
serious import of what they had 
expected to be a lightweight 
after-dinner speech. 

What Mrs. Helen Robinson, 
Debenham’s chief stylist, was 
complaining about in. her 
speech to the annual dinner of 
the Society of Industrial Artists 
and . Designers, was the low 
priority given by much of 
British Industry to good product 
design. Her impact was all the 
more telling for the fact .that 
her definition of “ design ” was 
not confined to styling — which 
is what the term “industrial 
design ” has unfortunately 
come to mean in this country 
(see this page, March 14)— but 
the entire design process, 
including the product’s suita- 
bility for efficient manufacture 
and its economic viability. 

“The design and making of 

Unrepentant after her 
settling address, Mrs. Robb 
has since been prepared to 
insult to injury... She acc 
many companies of haviagt 
-priorities turned- upside. ~ 
of putting such matters 
image with the City. far 
up their scale of priorities 
getting the right products 
the market, in the right 
and at th& right price. 1 
just like Alice in Wonderk 
she maintains. . . 

To back up her case, rij 
counts her experience out 
field, when she accomp 
Debenhams’ buyers to tiieil 
rooms and factories of asp 
suppliers. The purchasing; 
of a company such as here/ ■/' ' 
70 stores, is unosually^stf 
so the suppliers regulariy: , 
out their top brass: the.;;." 
aging ' director, and his >• 
tors of marketing and . . * 
plus— quite often — the pr* 
tion director. But the xnT' 
of times they presented 
one with responsibility f- 
sign — either in narrow or 
all terms— “can be couni 
the fingers of one hand/ 
Robinson says sadly. 



Claim and 

)n 1968 I sold my business after 
24 years of successful trading 
leaving part of the purchase 
price to come later and rented 
the premises to the purchaser. 
After three years the purchaser 
claimed the business was not 
what it was made out to be 
and issued a writ claiming 
rescission of the contracts. No 
further moneys, no rent was 
paid. In 1971 the company 
was compulsorily liquidated 
and the purchaser walked out. 
He has done nothing v to bring 
his case to - trial and my 
solicitor tells me that if I go 
to coart and apply for the 
action to be struck out, I also 
lose my claim for the balance 
of the purchase moneys and for 
rent. Last August be told me 
that he had arranged with the 
other side to have the matter 
go to arbitration, but nothing 
seems to have happened. 
What, please, do you advise? 

We agree that the matter 
appears to have been handled in 
a very dilatory manner on your 
behalf. You can strike out a 
claim without losing the counter- 
claim. although by now both 
might be in Jeopardy. If the 
company which you say is in 
liquidation is the purchaser, 
your ’ counterclaim may have 
iittie practical value in any 
event. You might do well to 
instruct different solicitors to 
take over the matter and press 
for a speedy resolution,' if any 
resolution is likely to produce 
practical results. You are not 
obliged to go to arbitration 
unless you have agreed in 
writing (for example, in the 
contract) to do so. 

On average a pair of Church shoes cost twice as much as a pair of most others 
One glance will tell you why 

Shoe Rhone 

Lear her; Block or Dnte Dark Tmleacfacn 
Bookbinder finish. 

No. of operations involved: l60 
No. of crafts people invoked: 140 
No. of inspections: 10 during process 
*Cme taken: 10 weeks 

Pedigree: Church's 1U5 years offing leather craftsmanship. 
Po/ra hi rig: Cemd-hfiir brashes 
lining: i - ember 
Insole: Leather 
Sole: Leather - 
finings: E ifcP 
and wide H 
Price from £4L95 



Chord,! ibne. art ivaiUNc finrn B-iber.uTOiforJ Simr. I>ufcl->o Wl. Aunin RecdtrJ., and bondtSofA. JonaSrSanclnL Abo from idaiMMhp^ 1 
ifaUk. V.riLe luf jofy N it par-fox, (too Church ficCo. (footwear) Led, Sc. Jams. Statfampmo NN5 JJB. 



I hope to set up a small company 
with a £3,000 loan and an over- 
draft. (l) Would a repayment of 
the loan be assessable as a distri- 
bution? (2) If the loan were by 
means of a . loan slock and the 
company failed, would the loan 
stock loss he eligible as a capital 
gain tax loss? 

It Is unwise to set up a close 

company without seeking pro- 
fessional guidance beforehand, 
unless you know more about tax 
law than your enquiry suggests. 
Briefly, the answers to your ques- 
tions are (1) no, but it might 
lead to an apportionment, under 
paragraph 12 ( 1 ) (a) of schedule 
16 to the Finance Act 1972. 12) 
yes. Close company taxation is 
beset with pitfalls for the un- 
wary and self help is likely to 
prove a false economy. 

No legal responsibility can be 
accepted by the Financial Times 
for the answers given in these 
columns. All inquiries will be 
answered by post as soon as 
possible.. , 

each stayed at The White Hooj 

100 times. 

Every one of them is 
now a member of our Century Club. 

To commemorate this , we’ve 
given each of them a gift, consisting of 
a specially woven silk tie or ladie£ scarf 
and a keyring. 

For guests who have stayed with us 300 
times (of which there arc fifty) we present a 
set of solid gold cufflinks. And the number of 
guests who revisit us is growing all die time. 

We find that guests come back to The 
White House again and again. 

For The While House is a luxurious 
three-star hotel that knows how to treat you. 
the five-star guest. 

Being situated by Regents Park, and 

just ten minutes from Oxford Circus, it 
ideal for a slay in London. f . 

AH our rooms and suites have twi 
showeq television, direct dial telepno 

d °The restemunt is recognfeedas® 
the finest in London. And people come 
all over London just to eat there. J» 
reputation for haute cuisine ana its 
impressive wine cellar are Internationa 

is also The Co£fee Shop an. 


The White House 

Regents Park, London NW1 3UR 

ret 01-387 1200 Tekac 24111 

Rank Hotels' 




' •- . c 

- -:r. ... 1 

The Financial Times 



A ritual drama 

in Germany 


WITH THE conclusion of a new 
vaw contract for engineering 
workers in North Wuertteinbers- 
Novili Baden in the small hours 
nf Monday morning, the main ex- 
citement of this year's West 
German bargaining round is now 
probably over (though a note of 
caution is still m order until this 
week's ballots of the rank and 
Gic have been held, for the 
dockers in February threw cut a 
hard-argued pay deal at first 
sight l . 

As in past years, you would 
have had to he somewhat of a 
devotee to savour fully the long 
drawn-out. almost ritual drama. 
Was it actually necessary, the 
outsider' is tempted to ask. for 
Herr Hein?. DuerV and Herr Franz 
Steinkuehler. regional heads of 
the engineering employers and nf 
IG-MctalJ resncciivcly, tn nego- 
Tiale for a total of 250 hours and 
. to push themselves to the limits 
•of physical endurance, for so tiny 
a change in percentages? For the 
employers moved only from a 3.5 
per cent, offer to the 5 per cent, 
settlement, while the union made 
a slightly greater movement 
downwards from its starting 
claim of S per cent, fin the pro- 
cess. hoth sides rejected an 
arbitrator's award of 4.B per 

reaffirmed the relevance of the 
West German bargaining pro- 
cedure itself, allowing both the 
perpetuation of an important fic- 
tion and proving German negotia- 
tor to be flexible enough to meet 
the challenges of problems that 
fall outside their traditional 
sphere of responsibility. 

The fiction that has been care- 
fully sustained is that of the 
total “autonomy" of the two 
sides of industry. It is true that 
eventual agreement was reached 
without the intervention of any 
outside — that is governmental — 
figure, in contrast to the recent 
printing industry dispute. Yet the 
mounting social and economic 
cost of even -a regional engineer- 
ing strike bad already reached a 
point where such intervention 
might soon have become totally 
inevitable had a deal cot been 
struck. Bonn is as relieved as 
anyone else that this did not be- 
come necessary. 


Of course, the percentages are 
important, both a ; part of the em- 
ployers’ wage and social security 
bill, and in terms of the German 
Government's target of a 5.5 rer 
cent, rise this year in actual 
earnings, with which the meta! 
industrv deal M just about still 
compatible. No-one, including the 
unions. i<= in any doubt of the 
significance uf even tenths of 1 
per cent, in the current context 
nf a relentlessly climbing 
Deutsche Mark, which has 
already made this country's 
workers the world's most expen- 

Reaction to the Stuttgart 
settlement has been something 
less than enthusiastic. Em- 
ployers in other regions have 
called the 5 per cent pay- 
increase too high, and have 
warned that the customary, 
virtually automatic, adoption of 
the contract’s terms for the rest 
nf the country is by no means 
assured this time. From the 
Ministry of Economics, whose 
5.5 per cent, rise for total earn- 
ings implies wage rate increases 
nf well under 4 per cent., there' 
has so far been a deafening 

Yet the engineering industry 
negotiations and three-week-long 
strike and lockout have served 
other purposes that are perhaps 
even more vital than that of the 
traditional yardstick for the rest 
of the. wage round. They have 

The flexibility of the procedure 
bus lain in the inclusion. For the 
first time in a comparable West 
German wage contract, of the 
provisions on job security and 
reclassification in the event 
of labour-saving technological 
change. This issue, even more 
than the size of the 19TS wage 
increase, gave the negotiations 
their particularly hard edge — 
just as the printers’ dispute 
which ended two weeks ago was 
mostiy concerned wit b the 
future under electronic, cold-type 
technology of men highly skilled 
and highly paid under the tradi- 
tional hot metal process. 


Before its demise, the con- 
certed action conference might 
have provided a forum for the 
discusison of such fundamental 
issues as the trade-off between 
job security and technological 
change. Instead, the unions, un- 
happy at the way in which that 
instrument of the social contract 
had become loaded against them, 
have raised the matter in two 
specific industries and have 
walked away with compromise 
terms in each case that both 
workers and employers should be 
able to live with. 

Whether either the printers’ 
or the engineering workers’ 
terms of adjustment to technical 
change provide models for the 
rest of Germany, or for other 
countries' parallel problems, are 
open questions. They will 
almost certainly squeeze business 
a little further at a time when 
the external factors are already 
alarmingly painful. 

But then, outsiders must 
always guard against the con- 
clusion that West Germany’s 
social stability has ever been 
either painless or cheap. 

Taking a knife to the 

Financial Times Wednesday April 5 1973 

THERE ARE two distinctive 
sorts of perennial plants in my 
garden: those which flower beau- 
tifully a year or two after plant- 
ing and then disappear and those 
v.-liich creep slowly along, looking 
wretched, until three years or so 
have passed and they suddenly 
become uncontrollable. . They 
remind me at times of racehorses. 
When you admire a clump of tall 
blue Anchusas flat out in flower 
at a height of five feet within 
three months of buying them, 
you are like the man who always 
backs the horse which leads by 
miles on the first circuit of the 
course, in the belief that it will 
stay there. Alternatively, a small 
group of pot-grown Japanese 
Anemones will linger on until 
you have almost forgotten them. 
Then, . elbowing all their neigh- 
bours out of the light, they will 
take aver half a flowerbed and 
prove themselves a winner. 

It ought, then, to be easy to 
match the two. Anchusa, Poppy 
and Verbascum could come and' 
go between clumps of the slow- 
movers. Owners of new gardens 
should indeed take these quick 
plants seriously: it is still not 
too (ate. though no longer cheap, 

to buy them for this year, 
wrapped in a black polythene 
‘pot’ round their roots. How, 
though, do you replace them 
when they disappear within two 

On the whole, these quick 
plants are not too reliable from 
seed. Sometimes, they germinate 
thinly. Often, they’ have been 
bought because, they are a parti- 
cular colour and will not come 
true to it from seed. Far the 
simplest way to increase them is 
to imitate the nurserymen and 
take cuttings off their roots. 
Gardeners are still too timid 
about this. We all pay too little 
attention to the spread and angle 
of the roots when wc plant some- 
thing. But after that, a root is 
sacred. Put so much as a fork 
through a rose-root after it has 
been pushed in to fit its hole, and 
you feel that the morning's work 
has been more harm than good. 
Last winter, 1 set about the roots 
of my best quick border-plants 
and cut them up. I am now 
enjoying the results which are 
not, I assure you, disastrous. 

The ease of rooting a root- 
cutting first dawned on me 
through a mistake. I had been 

impressed by the big clump of 
white-flowered kale. Cmmbe 
Cordifolia, in the back of the 
long June border at Kiftsgate 
Court. Gloucestershire. Many, 
too, have been taken the same 
way. Never mind if this huge 
7ft. cloud of white Sower dis- 
appeared in • mid-July: the 
Michaelmas • Daisies would hide 
it. So 1 let two roots of it into 

leaves of Crambe QjrdiJolia 
were sprouting everywhere and 
I bad turned a pleasant bed'^of 
day-lilies into something more 
like a cover for foxes. Root 
divisions, choppings or cuttings 
were dearly an easy vyay of 
increasing- a plant which still 
sells at 70p for a root 
H the kale would do it, why 
not the Anchusa. Poppy. "Sea 



the hack of a smaller border 
and soon wished that it had 
stayed no nearer than Chipping 

The main root bolted 3ft. 
deep in the drought. I tried to 
stop the side roots spreading 
into a shrub and chopped them 
into small pieces, every one of 
which turned into a new piece 
of kale. 1 then set about the 
main root and broke it too, 
whereupon the huge cabbage- 

Thistle and Verbascum too? ■ I 
am very fond of these fine 
plants, especially a stand of the 
deepest Blue Anchusa beside a 
wide . clump of pale primrose 
yellow, best found in a charm- 
ing Verbascum called “ Gains- 
borough." They, too, are not 
cheap, especially when some of 
them die after one good. year. 
But root-cuttings are the answer 
to them, as they will not divide 
nor come well from a seed 

packet. I suppose that it is still 
not too late to try this out 
though you should act at once 
and. tell yourself it is a late 

spring. , , - 

Dig up one of. these plants 
with as- much of its tap-root as 
you can extract. IE you break 
bits off, lay them carefully in 
a box, being sure only that you 
know’ which ends were once their 
top-end, the end nearest the 
surface of the soil. Discerning 
the top end is the one and only 
trick to taking a good root- 
cutting. When you have the tap 
root, cut it up into hits an inch 
to two inches long. ' Again, put 
these in the box with a If top 
ends pointing in the same direc- 
tion. Take the box to another, 
preferably quite a deep one. This 
should be filled wirh a sandy or 
gritty light loam, well sieved and 
. damp, but not so damp that it 
dogs into a ball when you hold 

. Into this mixture, merely prick 
out your bits of root, making 

sure that the top side is still 
ir f ace . 

nearest the soil’s surface. They 
go in vertically, just as if they 
were still on their parent. Press 
them firmly down and cover 
them over with half an inch of 

the same soil. There is 
to water them too bamiJ 

when shoots appear. aromS’ 

May, be ready io move 
little plants. to a „u£ 
until next spring. One gS- 
root can give you a dozens, 
ren,. They root .v er y rwiu 
far more regularly than fife 
root-cuttings. But keeo th» 
side up. - . . 

Evening Primroses and- 
huge silvery biennial thisS. 
six-foot Onopordon. are ei& 
plants for root-cuttings 

Division is a quicker wa 
increasing the border Phlox 
there is also a use forint 
from .the roots. Eeiwnn* 
mains the small but -lethal? 
of Phloxes in whose shite 
lives, twisting and shrtw 
them. By taking a root* 
and putting It in a now tec 
can sometimes rescue tho« 
Grenadiers and White Adi 
which are troubled with th 
stoopable pest. 

As you see. it is verv si 
nurserymen are not ai wa 
the border-plant trade becai 
i»s skill. You need onlv 
what I learnt from the 
never be too afraid of cutti 
established root to bits. 

Popular Win likely to beat 
rest of Haydock handicappers 

winning form last season, line 
up for this afternoon’s £5,000 
Wright and Green Handicap over 
a mile and 40 yards at Haydock. 
A closely fought race with a wide 
betting market seems assured. 

My idea of the likely outcome 
is a victory for the Ryan Price 
filly. Popular Win, who has made 
the long trip to the North-West 
from Findon, Sussex. 

This chestnut daughter of 
Lorenzaccio impressed all who 
saw her, when disposing of My 
Habibi in Goodwood's Findon 
Stakes in July. 

She again caught the eye when 
putting up a particularly credit- 
able performance at Newmarket. 

There, Popular Win finished 

a close third of 14 behind 
Casino Roy ale, after appearing to 
be in trouble at halfway. 

Sure to be well-suited by this 
afternoon’s stiff mile on what 



seems likely to be yielding 
ground. Popular Win can take 
advantage of the 5 lbs she re- 
ceives from the possibly still 
backward Homing, a Habitat 
colt out of the Princess Royal 
Stakes winner Heavenly 
Thought. . 

New style tennis trophy 


THE third TrophGe Pernod cir- 
cuit, a team competition for ten- 
nis players under 21, will have 
new venues and a new format 
for this year's competition, to be 
held between September 25 and 
October 7. 

It wti] he reduced from three 
weete to two and the first tourna- 
ment will be played at the Not- 
tingham University Sports 
Centre. The second will be 
played at the new Stevenage 
Leisure Centre, where the indoor 
bowls hall seating S00. will be 
adapted to international tennis. 

competition between teams from 
eight nations. This year's compe- 
tition will U6e a “round-robin" 
format prior to the' knock-out 

Great Britain, already holder 
of both men’s and women's 
trophies, plus Canada. West 
Germany, Sweden and Holland, 
have accepted the invitation to 
compete this year. Replies are 
awaited from Czechoslovakia, 
U.SA. and France. 

In the past, the Trophce 

Pernod has been a knock-out 

There will be open events for 
men and women alongside team 
competitions, and the first prizes 
have been raised to £200- . 

Paul Cole produced a smart 
early sort hi Heir fo the Throne 
at Leicester on Monday, and it 
will come as no surprise if Cock- 
ney Rebel, another newcomer 
from bis Lambourn, Berks, 
stable, does the trick -in the 
George Fordham Maiden Stakes. 

Reports of this bay Sparkler 
colt suggest he will have too 
much early pace for the George 
Poter-Hoblyn trained Manton 
challenger. Red Crow, a ches- 
nut colt by Balidar out of 

Some 30 minutes after Popular 
Win and company are tackling 
the mile of the Wright and 
Green Handicap, I hope to see 
Rushmere take advantage of tV? 
9 lbs he receives from Dramatist 
in the day s most valuable event. 
Ascot's Bernie Inns long-distance 

Later in the afternoon. 
Prousto. a five-year-old with an 
extremely formidable reputation, 
can justify his admirers’ 
accolades with a clear-cut suc- 
cess over Gruffandgrim in the 
two miles Kestrel Hurdle. 


2.00 — Running Cost 

2.30— Cockney Rebel** 

3.00— Popular Win* 

3.30 — La Garde 

4.00— Gallle Craig 

4.30 — Orange Squash 


2.00 — High Prospect 

2.35 — Crowning Issue 

3.05 — Regal Choice 

. 3.35 — Rush mere . 

4.10 — Carnival Day 

. 4.40— Prousto*** 

BBC 1 

t Indicates programmes In 
black and white 

6-40-7.55 a.m. Open University. 
12.45 p.m. News. 1.00 Pebble 
Mill. 1.45 Bagpuss. 3.53 Regional 
News for England (except 
London). 3.55 Play School. 4.20 
Bn i ley's Comets. 4.40 The Sep- 
pala Race. 5.00 John Craven's 
News round. 5.10 Grange HilL 
5.35 Ludwig. 

5.40 News 

5.55 Nationwide (London and 
South-East only) 

6.20 Nationwide 

G.50 Young Musician of the Year 

7.20 Big Henry and the Polka 
Dot Kid 

8.10 Miss England 197S 

9.00 Party Political Broadcast 
by the Conservative Party 
9.10 News 

9.35 The Hong Kong Beat 
10.05 Sportsnight— Motor Racing, 
Greyhound TV Trophy, 
International Boxing 

10.55 To-night 

11.35 The Sky at Night 

11.55 Weather/Regional News 
All Regions as BBC-1 except at 

the fallowing times: — 

Wales — 5.10-5.35 p.m. Bilidowcar. 
5.55-6.20 Wales To-day. 6.50 
Heddiw. 7.10 In Our Nature. 7.40- 
8.10 Young Musician of the Year. 

11.55 News and Weather far 
Wa les. 

Scotland — 5-55-6.20 p.m. Report- 
ing Scotland. 9.0Q-9J0 Party 
Political Broadcast by the Scot- 
tish Conservative Party. 10.05- 

10 .55 Sportscene. 11.53 News and 
Weather for Scotland. 

Scene Around Sul 9J35-10.05 Spot- 
light on Northern Ireland affairs. 
11.85 News and Weather for 
Northern Ireland. 

England — 5.55-6.20 p.m. Look 
East (Norwich): Look North 
(Leeds, Manchester, Newcastle); 
Midlands To-day (Birmingham); 
Points West (Bristol); South To- 
day (Southampton): Spotlight 
South West (Plymouth). 

BBC 2 

Northern Ireland — 3.53-3.55 p.m. 
Northern Ireland News. 5.55-6,20 



1 Person beginning month with 
hard water 161 

4 Chap at the inn with stable 
prospects (6) 

8 Cup for the masses (7) 

9 Initially very important to 
read instrument ordering 

- lactic acid (7l 

11 Revert to some fair amuse- 
ment (10) 

12 Simple key tu a southern 
youth leader (4) 

13 Drink given by crime squad 
to the Queen (5) 

14 Wood certainly provides part 
of rigging (S) 

16 Non-paying customer passed 
on to director (S) 

15 Plate in service with parent 
given clear backing (5) 

21) No soldiers to sign for the 
future 7 (4) 

21 Die fighting at the front to 
conform (4, 2. 4) 

23 Two girls join in casing a 
joint (7) 

24 'South Africa against girl 

• reaching grassland (7) 

25 Boring rubbish that could 
bring the house down (3, 3) 

2b' Notice an opening coming (6) 

2 Looked after by servant say- 
ing farewell to Mr. Heath (7) 

3 Prepare to fire gun (colt) at 
child's plaything (9) 

5 Smooth oil on water (5) 

6 Bounty was a great ship (7) 

7 Bird's pledge to piece on 
board l5, 4) 

Charge an instrument that’s 
designed to get by an Inspector 
(3, 6) 

13 Best part put on paper (5. 4) 
15 Salesman over bonier has 


additional carpeting (9) 

17 Studies cathedral In close 

fashion (7) 

19 Cultivation lasts as far as 
one's later years (7). 

21 Lubricant of upset page (5) 

22 Composition maintained with- 
out any cricket practice (5) 

Solution to Puzzle No. 3,633 







1 Sound expertise ? 
means (5) 

By no 

6.40-7.55 a.m. Open University 
10.20 Gharbar 

10.45 Parosi 
11.00 Play School 
11.25 Open University 

2.20 pjdo. Racing from Ascot 
4,53 Open University 

7.00 News on 2 Headlines 

7.05 Mr. Smith Propagates 

7 J0 Newsday 
8.10 Brass Tacks 

9.00 Party Political Broadcast 
(as BBC-1) 

■ 9.10 Call My Bluff 
19,40 Midweek Cinema: “ Dead 
End" starring Sylvia Sid- 
ney, Joel McCrea and 
Humphrey Bogart 
11.10 Arena: Art and Design 

11.45 Late News on 2 
1155-12.05 a.m. Closedown: 

Michael KUgarriff reads ‘A 
Clearing in the 'Alps’ by 
William Peskett 

BBC-2 Scotland Only— 9.00-9.10 
Party Political Broadcast (as 
BBC-1 Scotland). 

9.10 Send in the Girls 

10.10 News 

10.40 The 50th Academy Awards 
J1.40 World Snooker; The Lad- 
broke International 

12.10 a.m. Night Gallery 

1225 Close: Heather Emmanuel 
reads teachings and sayings 
of Buddha 

All 1BA Regions as London 
except at the following times: — 


1-36 a.m. Canada Five Portraits, lfl.25 
Manfred. 10.40 Hanna Barbara Special 
1130 Winning With Wilkie. L2S p.m. 
Anglia Kotos. ZOO Houseparty. &20 The 
Andy Williams Show. 5.15 Mr. and Mrs. 
6.00 About Anglia.. 9.00 Rafferty. U^W 
Bareli a. 22.40 aum. The Big Question. 

Report Wales Headlines. 109 House- 
party. 3 JO Survival. 525 Dodo the 
Soaee Kid. 5 JO Crossroads. 6-B» Report 
West. 60S Report Wales. *30 Havoc. 
* 00 Rafferty. U.V Eve. 1220 a_m. The 

. HTV Cymru /Wales — As HTV General 
Service except: 1.20-L25 p.m. Penawdan 
Newyddioo y Dydd. 420 Miri Mawr. 
4JO-4A5 Un Tro. 6.K4J5 Y Dydd. 

HTV Won— As HTV General Service 
except: 120-1 JO p.m. Report West Head- 
line*. 6.00-4J2 Report West. 


10.00 a.m. Something Different. 10.15 
In a Balloon over the .Ups. UA0 Clue 
Club. 1130 Puzzle Party. U25 Westway. 
11.50 Professor Balthazar. UD p.m. ATV 
Nevrsdcsk. 320 Paint Along With Nancy. 
3 JO The Sullivans. 5.15 Mr. and Mrs. 
6JH ATV Today. 1,08 Quincy. 10 JfO 
Citizen's Rights. 1125 Dnvc-ln. 


*.45 a.m. Once Upon a Circus. 1D25 
The Stationary Ark. 10J5 You Can Make 
It. 1120 Weatway. 11.45 Oscar and the 
Great Woolcroo. 125 p.m. News and 
Road Report. 220 Women Only, 321 
Paint Along With Nancy. 330 Mr. and 
Mrs. 5.15 PI pet and Friends. 520 Cross- 
roads. LOO Scotland Today. 630 Report. 
8.00 Quincy. U.40 Laic Call. 1130 Pro- 
Celebrtly Snooker. 



1J5 a-m. Sklppy. ID .00 A Career In 
Communications. 1020 So Wc Are 
Different. UL55 You Can Make U. 1120 
Westway. 1L45 Oscar. TJL20 p.m. Border 
News. 200 Houseparty. 320 Survival. 
5.15 Mr. and Mrs. LOO Lookaronnd 
Wednesday. 8.00 Kaffcny. 11.40 Gibbs- 
ville. 11235 a.m. Border News Summary, 



1.18 pjn. Channel Lnncblimc News and 
What's On Where. 320 Friends of Man. 
L00 Channel News. 620 Castaway. L0Q 
Rafferty. 4JM Review. 1038 Channel 
Late News. 1125 Survival Special. 
1230 a-m. News and Wealher in French 
Tallowed by Epilogue. 

425 a.m. Skippy. UJU Apaches. 1025 
Sinbad Junior. 1025 The Invaders. 1120 
Winning With wtlkie. 120 pjn. Southern 
News. 2.00 Houscpany. 32B Survival. 
525 Betty Boop. 520 Cross roads. LOO 
Day by Day. mu Southern Hew* Extra. 
1120 The BuUins Grand Masters Darts 


925 a.m. The Good Word followed by 
North East News Headlines. 920 Stars 
On lee. tio .00 Harold Lloyd's World or 
Comedy. 1025 Frond Predators. 1120 
Went way. 1L45 Oscar and the Great 
WouFcroo. 120 p.m. North East News and 
Loo ka round. 2.00 women Only. 320 The 
Odd Cauple. 5.15 Happy Days. LOS 
Northern Life. LOO Raff cay. U-40 Land- 
scape. 1220 *.m. Epilogue. 


. Evenings 7.30. Mats. Sals. 2.30 DON 
: JUAN. A Comedy bv Mollere. I recom- 
mend it warmly " Fin. Times. 

C-C-These theatres accept certain credit' 
cards by telephone or at the box ofllce. 


COLISEUM. Credit cards 01-240 3258: 

Reservations 01-b36 3161. 

Tonight 7.00 & Tues. next 7.30 Julietta;, 
Tomer. A. Sat- 7-30 Aon Giovanni <JlngJ 
pert.l: Frt. 7.00 Fore* ot- Destiny; 10*4 
balcony ■ seats ' always aval fault- day --at 
perl. Now booking for May peris. :' 



240 tOGfrf 

■ Gareenchargc credit ares a30 69031* 


Tonight. Sat. & Tues. 7,30 tlol -D eath la-: 
Venice. ' - 

Tom or. Fri. A Man. 7 -AO pjtu The .Ffre- 

bird and Song ai the Earth. . 65 Atnptir 
Sean ter ail pern. 

. on Mia from TO' a.m. 

on dav ol oeri - ' 


9 April 1.0 
Tickets £1-£5. 


Are- E.C.l. B37 1672, ,T9 April IB 13 


ADGLPHI THEATRE;. CC. ' 01<B36 7611. 
Eros. 7.30. .Mats. Tnura. 3.0, Sat 4.0. 

ol lsio. i.-v7 anu lb'/B I 

IRENE ■ ‘ 


Sunday People. .... 


A LB Eft Y. 836 376B. Party Rates. Credit 

care bfcgi. 830 1071-^2 rtrem 9 : -a.|n.- 

6 pjn. I. Mon., Tues-' Wed and 

7.45. p.m.' Tnurs. Jfld SaL 4JO -and 0. 
LIONEL BART’-S . ' . - 




v Mlcrw. 

ALDWYCH. 836 6404. Into - £06 5332. 
repertoire. OoerHnu perfii W "Be* 'London 
season. No pert. .ten'!. Tomor 7.50 ved- 
price preview HENRY Vt PART I "excett 
in speed and contrasts." The Times. With; 
HENRY IV . Part 2 tSa« HENRY VI Part 
3 rMonl. Reduction an tep prtro seats 
if 3 pern booked touettier. RSC afca 
at THE WARE-HOUSE JPerls. from 1.0 
AorlD and at PieadHir Theatre in. Peter 

ALMOST FREE. 4 US 6224. Limi ted 
season ontvj Wolf Monkowitrs SAMSON 
& oelilah. M.B. Nightly at 6 p.m. 
me. Sun. ..No snow Frl_.._. _■ 

. E*OS- B.Q. 


Louts Seiwyn gyrates brilliantly as Mick 
' Jagger." D.Tel. ■« Raw ckcrtewent." D.MI, 
"Audience Cheered." 5. Tei. . 

Mats. Thors. 

a ?:& 7 o 2 “ 3 ' 

sit. slda’aSS 'slool 


>r of the Year. E. Std.J 

I ACtOr li. 

".IS SUPERB/ 1 N-o.W.' 


ARTS THEATRE. 01-636 2132. 


” Hilarious ... see it. Sunday Times. 
Monday to Thursday 8-30. Friday and 
Saturday at 7.00 and 9.15. 

ASTORIA THEATRE. Charing Cross Road. 
01-734 4291. Nearest Tube: Tottenham 
Court Road. Mon.-Thurs. BOO p.m. 
Friday and Saturday 6.00 and 6.45 

Instant Credit Card Reservations- Eat In 
our fully-licensed Restaurant or Buffet 
Bar lunchtime and before or aftei show 
—bookable in advance. _ 


CAMBRIDGE. 836 6056. Man. lo Thur. 
6.0. Fei.. Sat. at 5.45 and 8.20. 


Exciting Black African Musical 
•■Finest dancing >n London. 5heer 
dynamism" D. Mall. 

Dinner A Top-price seat £8.25 Inc. 

COMEDY. , 01-930 2S7B. 

Evening 6.0. Thurs. 3.0. SaL 5.30. B.30. 

Margaret COURTNAY- Dermot WALSH 

9J0 a-m; Kimb#. 9.50. Heritage. 
+10.40 Ho pa long Cassidy in 
‘Pirates on Horseback.’ 11.45 
Oscar. 12.00 Cloppa Castle. 12.10 
p.m. Daisy, Daisy. 12J30 Sounds 
of Britain. 1.00 Mews. 1.20 

Help! 1.30 Crown Court 2.00 

After Noon. 2.25 Barney’s Last 
Battle. 3-20 The Ro/f Harris Show. 
3.50 Paint Along with Nancy. 420 
How. 4.45 Pop Quest. 5.15 

Emmerdale Farm. 

5.45 News 

6.00 Thames al 6 

6-35 Crossroads 

7.00 This is Your Life 

720 Coronation Street 

8.00 The Streets of San 


9.00 Parly Political Broadcast: 
Conservative Party 


4JB a-m. First Hung. M-00 Tandarra. 
10.55 You Can Make !l U-2fl Westwur. 
IL45 Oscar and ibe Great Woofcroo. 

I. 20 p.m. Grampian Ne-.vs Headlines. 3.20 
Paint Along With Nancy. 3.58 Survival. 
US Grampian Today. 6 JO Police News- 
room. 1.00 RaiTeny. 1L40 Reflections . 

II. 45 An Audience With Jasper Carrot. 


U .20 a.m. Tree Top Talcs. 19-30 The 
Secret Uvus of Waldo Kitty. X0J55 You 
Can Make ll. 1UB Westway. LL4S 
Oscar. L2B p.m. Lunchtime. X20 Get 
Out or Tuwn. 3J0 Paint .along With Nancy. 
4JS Ulster News Headlines. 505 Sold 
•me. 660 Ulster Television News. W5 
Crossroads. Eu 0 Reports. 8-90 Rafferty. 
XIAO Make It Count. I2J85 a-m. News at 




9 JO a.m. Sraarne Street. MJO The 
Mature of Things. UJB Sloppy. U.4S 
Ca noontime. IJg p.m. This Is Your 
Right with Lard winsunlcy- 3.2E 
Untamed. World. 5J8 This Is Your Right 
i second chance to see today's lunchtime 
programme. 5.15 Crossroads. 6-03 
Granada Reports. tJO Mr. and Mrs. 09 
Rafferty. 1L40 Gtbbsnlle. 


ULOO a.m. Sesame Street. 1IL55 You 
Can Make il 11.20 voices in Orbit. 
13-45 Oscar and the Great Wooferoo. 
1-20 p.m- Report West. Headlines. US 

1950 a.m. Conquest o( the Air. ID 55 
You Con Make If. 1L20 Wcsnray. 11-45 
Oscar. 12-27 p.m. Glis Honeybun's Birth- 
days, 1.29 Westward News Headlines. 
3.25 Friends of Man. 9.00 Westward 
Diary. 8.88 Rafferty. 1638 Westward 
Late News. 11.35 Survival Special. 
1230 bjti. Faith for Life. 


930 a.m. Canada— Five Portraits. 16-25 
The Undersea Adventures of Captain 
Nemo. 1630 Little House on the Prairie. 
1130 The Electric Theatre Show. 130 p.m. 
Calendar News. 12Q Ho one party. S-15 
Mr. and Mrs. *J» Calendar lEmlcy 
Moor and Belmont editions). MO 
Rafferty. U-40 Darts. 1230 a.m. Handle 
With Care. 

RADIO 1 247m 

(S) Stereophonic broadcast 
5 DO a.m. as Radio . 2. 7.02 Noel 

Edmonds. 9 DO Simon Bates. 1131 Paul 
Burnell Including UL3B pjn. Nvwobeat. 
2. DO Tony Blackburn. 431 Dave Lee 
Travis Including 330 Mi-wstacaL 730 
Sing Something Simple (Si (Joins Radio 
2). UJU John Peel (Si. 12JB-2J& a.m. 
-Lb Radio 3. 

VHF Radies 1 and 2: 5.00 a.m. With 
Radio 3. including 133 p.m. Good Listen- 
ing. UJU With Radio L 12.00-2.02 bjti. 
WiUt Radio 2. 

Radio 1 Scotland Only— 1.45 pjn, 
Semprlnl Sereoad..- i continued . from 
Radio S>. 9-02 Bing, pan 14: On the 
Road Again. 435-10.02 Sports Desk. 

RADIO 2 1.500m and VHF 

SJ» a.m. News Summary. 5JH Ray 
Moore with The Early Show fS) Includ- 
ing 6.15 Pause for Thought. 732 Terry 
Wwan i5» Including 337 Racing Bulletin 
and 9.45 Pause for Thought. 1032 Jimmy 
Young . S ■ . 12-15 p.m_ Waggoners’ Walk. 
liJO Pete Murray's Open Rouse i5' 
Including 1.45 Sports Desk. 239 David 
Hamilton 'S' including 2.45 and 3.43 
swris Desk. 439 Waggoners' Walk. «3S 
Sports Desk. 437 John Dunn (Si includ- 
ing 5.45 Sports Desk. 6.45 Sports Desk. 
732 Sing Something Simple 'S'. 730 

Listen to the Band ■ S i. 835 Semprtni 
Serenade fS>. 9 .02 Bing (Si. . 9J5 Sports 
Desk. 10.02 I'm Sorry m Read That 
Again. 10.30 Ruben Gregg . says Thanks 
for the Memory. LL02 Brian Matthew 
introduces Round Midnight, including 
12. DO News. 2.03-232 am. Ncta'3 Summary. 

News. 835 Your Midweek Cbolc^ part 2 
iSi. 4.00 Hews. 035 This Week's Com- 
poser: Nielson iSt. 10J» Holiday Special 
iS». 16.20 Music for Organ iSi. 1L0S 
Midday Concert, part 1 iSi. 12.05 p.m. 
In SborL 12.15 Midday Concert, pan 3 
iSi. LOO News. LB Concert llall (Si. 
2.00 The Exotic Sound or ... the Pear 
Leaf on record <5 ■ 2.05 Haydn String 

Quarters. 2.55 From the Proms 77 iS>. 
435 Smetana chamber music <S). 435 

Building a Library is*. 2S.45 Homeward 
Bound. 16.05 News. * 3630 Homeward 
Bound iconiianeJt, jtjo Ll/ullnes. 730 
BBC Scalush Symphony Orchestra, pan 
1: Beethoven tS*. 835 The Arts World- 
wide. 835 BBC Scottish Symphony 
Orchestra, part S: Wasocr (Si. 4.45 
Scientifically Speaking. 1038 Chopin and 
Strauss cello and piano recital tS ■ - 1135 
News. UL3S-1L35 And Tonlghi'E Schubert 
Song on record. 

. Radio 3 VHF only— 430-7-00 a.m. and 
535-730 p.m. Open university. 

Radio 2 Scotland Only— 835-1030 p.m. 
Sport sound Special (]4$4kH3 and VHF 

RADIO 3 stereo &VHF 

{Medium Wave only 
K35 a-m. Weather, 730 News. 73S 
Your Midweek Choice, pari 1 tS.i. 630 


434m, 320m, 2S5m and VHF 
635 a-m. News. 6.17 Farming To-day. 
635 Up lo the Hour. 652 iVHFl 
Regional News. 730 News. 730 To-day. 
735 Up to the Hour idVJ-- 732 (VHK) 
Regional News. 830 Xcwfl. 830 To-day. 
835 Yesterday In Parliament- 936 News. 
935 The Living World. 935 Songbook 
fS>. 18-TO No irs. IBM Jp Britain Now. 
1830 Daily Service. UL45 Morning Story. 
1130 News. 1135 Bestseller. U3» Tales 
and Legend* or ihe Rlphlands. 1230 
News. 1232 p.m. You and Youra- 12.27 
The Enchanting World of Utnge and 
Braekut. 11235 w<.athur. programme 
nev% - s VHF luxcepi London and SE* 
Regional News, i.oo The World ai One. 
L30 The Archers. MS Woman's Hour 
im*KtdJn<: 2.00-2.02 News. 23 S Listen 
With Mother. XOQ 535. Afternoon 

Thbatn- iSi. 3J50 Choral Evensong from 
Souihwark Cathedral. .435 Story Time. 

530 PM Reports. 530 Serendipity. 1SJ5 
Weather. programme news iVHFi 
R egional News. 8.00 Nows. 830 Quote 
. . . Unquote i SI. 730 News. 735 The 
Archers. 7.29 FUc on 4. 830 -Tile 

Bombers: Retrospective assessment of 
their use In ihc war. 430 Science Now. 
936 Kaleidoscope. 439 Weather 1030 
The World To-night. 1030 The Hitch- 
Hiker's Guide to the Calaay (Si. 1130 
A Book at Bedtime. 11-15 The Financial 
World To-fllghL 1130 To-day in Parlia- 
ment. 1238 Nows. 

VHF— 6.15335 a.m. With Medium Wive. 
835 News' Headlines: Weather: Papers: 
Sport. 835 The Glams. 430 Close with 
Medium Wave. 

BBC Radio London 

206m and 94.9 VHF 
630 a.m. As Radio 2. 630 Rush Hour. 
430 Holiday Scene. 936 London Live. 1133 
m Town. 1235 p.m. Call In. 2.03 S06 
Showcase. 435 Home Run. (LID Look. Stop. 
Listen. 730 IQ Town (as 11-03 a.m.1. 830 
In Concert. 1835 Late Night London. 1230 
as Radio 2. 12.05 Question Time. 139-Clese 
As Radio — 

London Broadcasting 

261m and 97J3 VHF 

5.80 un. Morning Music. 630 A3I.: 
non-stop news, travel, sport, reviews, 
information. 1030 Brian Hayes. 1.00 p.m. 
LBG Reports including George. Gale's 
3 0’clOCk Call 8.09 After a. 936 Night. 
line. 1385.80 a.m. Nlght-Eztra with 
Adrian Scott. 

Capital Radio 

194m and 93.S VHF 
630 a-m. Graham Dene's Breakfast 
Show (S'. 930 Michael As pel • s ■ . 1230 
Dave Cash iSi. 3.00 Roger scon iS>. 7.oo 
London Today 7.30 Adrian Love s 

Open Line, 930 Yaur Mather Wouldn't 
Like It with Nicky Horni- i S ■- 1130 Tony 
Myall's Late Show <9>. 230 o,m. Diidcao 
Johnson's Night Flight tSi. 

"Blackmail, armed robbery, double Muff 
and murder." Time*. "A good doel of 
fun." Evening New*. 

CRITERION. CC. 01-930 32 IS. 

Evenings S. 5ata. 5.30. 8.30. Thurj. 3.0. 

"Impeccable ... a master. '• Sun. Times. 


DRURY LANE. CC. 01-838 BIOS. Ererv 
Night 8.00, Matinee Wed. and Sac. 3.00. 

-A rare, devastating. Joyous, astonishing 
stunner." Sunday Times. • 

DUCHESS. 836 8243. MOn. to Thun. 
&n». 8.00. Frl.. Sat. 6.1 S and 9.00. 

"The Nudity i* stunning.” Dally Tel. 

DUKE OF YORK'S. 01-836 5122. 

Evgs. K M *‘ 3 00 ' 

,n J tSMgK" t% 

“ Brilliantly witty . . - no one should 
miss IL- Harold Hobson (Dramai. Instant 
credit card reservations. Dinner ana top 
price seat £7.00. 

HAYMARKET. 01-930 9832. Evg*. B OO. 

Mat. V?ed*7 2.30. Sate. 4.30 and 8.00. 




“Ingrid Bergman make* the *“9* 
radiate — unassailable Charisma. Oly. 
Mall. "Wendv Hiller l& superb." Sun- 

HER MAJESTY'S. CC- 01-930 6606. 
Evening a.oo. Mate. Wo^A.saL.X.OOi 

■ • •“LTST r.niMhc 

'with Derek Gfl Orths. 
Directed- by BURT 


■AND." E. New*. " BRUCE. F0R5YTH. 
HE it I 


Men. tb Thirr. 9.0. t-ri.. Sat. 7 SO. 9.30 


LOUDON PALLADIUM. 01-437 7373 
April ' 13 4 14 at 8.0. April IS at 6#15 
VS » 8745.- 4 PERFS. ONLY. ■ 


' ' IP 1 wbrnM JL. KlhrMI Djnktrlrl 

Karen Jackson Jk Kiaren .Ragiand 
Bok OSIcr Open. BOOK. NOW- 

LONDON PALLADIUM. CC. 01-437 7373 
BOOK WITH EASE on the . ■ NEW 
01-437 2055. 

- April 17th. Two weeks- onlv. 



LYRIC THEATRE. CC. 01-437 3EB6: EvS- 
B.: Mats. Thais. 3. Sate. f. — 

0 .and 8.30. - 


by Eauaroo rilippo , • 


HUNDRED YEARS." Sunday Times. 

MAY FAIR. CC 629 3036. 

Mon. to Fri. 8.0. Set 5.30 -and B.4S. 
GORDON CHATER “Brilliant." 6. N. in 

■ • ■ by Steve J. Spears -. . 

11 A compassiona.c lunity. Aereely ctoouent 
play." Gdn. "Hilarious.'' E-StcL "WKluMiy 
amusing." E. News. - -Spellbinding." . OW- 

MERMAID. 248 76S6. , Restaurant 240 
2835. i Tam Conti. Jane Asher In. 




Evgs. at 8.00. Mats. Thurs- s7 
John Reardon^and^^)o in [j l(Bla 

The leaendanr musical 

SAVOY. 01-631 

Nightly at B 00. MaL w7£ 
Sat. 6.00 and 


The Worin-Umous Thrill* 
Scemg the plev again h; In 
utter and total joy." >un 
“It will run and rug- aoain," < 
Evenings £1 to £4. Man. £j 


. . . bv Arnold Wnitf 
Opens Tomghl 7.00. Sub. Evg 

STRAND. 01-E36 2660. Even® 
Ml. Thurs. 3.0D. Sals S-30 ai 

we re British 


ST. MARTIN'S. CC. 836 1443. E 
Mat. Tues. 245. Sets. 5 an 
26th. YEAR. 

B-OO. Dining. Dancing <1.30 Sup 
and- at If p.m. 


Tbn't. at 7. From Tom or. Ere 
br. Charles Dickens. 
(In 4 parte. In Reeertc 

VAUDEVILLE. 836 9988. CC. t 
MaL Tees. 2.45. 5aL S ir 
O.-nah 5HERIDAM. Dutch' ‘ 
Eleanor summERField. June 
" Re-enter Agatha with ano) 
dunntt hit. Agatha Canute 
Ihc Writ End vet again wit 
at her hendWiiy mgenhw 
mvatenei." Foil* Barker. Even 



Prcre. Horn April 2S. Ooem 

:Evgs. ]8.1S.; Frl. and 




' MCW**«I9 * l»w IR«ll«4«d •'W* 1 

~K... 'ia-23 and'iwr SdiC- 4Pta T Mjg 
Sun. 7.30. ev«fc *L15 ten- Anni -Ta 
" • at T-OOi. • v ■■ 

OLIVIER i open sniaek Tpiq. , 

. To-mor, 2.4S S 7.3D THE COUNTRY 
Wire by ^William Wvdiarlor. : - - . 

LYTTELTON Iprmccenlum Stage): Fri . 
7.45. ■- SaL- 3 4 -7,4S ired. pr. - prevs.i 

. 3 A -7.4S If 

. — XTY. Syr.DavW Hare. 

n«n«. .* _ 

wi vcawwE.-fsivi2l|' aiftntorhinrti: Today .. 
and B.LARK RISE Written by Keite Devr 
_ horst -from Fkya Thom WOn's book iprom 

mw 'excellent; cheap' seats. all 3 theatrerl 
day of pert. Car park. Reitaurant S28 1 
2033. Credit tard bkgs. 928 3052 

OLD VIC 92B 7616 

The Old VK Yoath TTieatre. April 10-15. 
The Caucasian Chalk Circle, the Wlrmers- 

pf^reor Old vie. Kerf Season 

starts April 20 with Twelfth r, iBht > and 
Saint Joan. Phone Box OBlcc for details. 

OPEN -SPACE. OT-M7 f»69. Cvgs. 8.0 
Triple Actkyo. ORPHEUS. 

PALACE- Credit Cards. 01-437 6834 
Mon.-Ttnirs. B.O. FOm ^aJ.E.Oarvd 8.40. 

April 13. 

""“ThM S’»3i^?iV k o, 

™. ■atsa.aaf'flg,™ 

A New Comedy by Royce Ryton. 

PICCADILLY. 437 4506. Credit care bkgs 
”s36 >071/2. 9_ a.m^__p Jti. .Evgs- 

E vg . ®^rid« re^A^ire 0 and "swet ’A ware 

” RoSal Shakespeare Company In 
by Peter Nichols 

by Peter Nichols 
(Not Suitable for Children) 

RSC also at Aldwy ch Theatre . 

PRINCE EDWARD. CC. (Formerly Casino. 
01-437 6877. Previews from June 12. 
Opening June 21- EVITA. 


.Monday, to Friday, at B^.m. 

SaL s3o"an'd '8.45r_Jda"L TS'ur. .3.00. 
— The Sun. 

Starr) m to April 8 
and from April IQ 
(ol ■■ Conlesalons of " him tarsi 

QUEEN'S THEATRE. -CC. -.-. Y .- 
Evening* Is. tL J>at...5.0_and 8.30. 

01-734 1168. 


virtelV ciob of GB Award 

A New. Play by al 



yi and Prayers London critics award. 

FORTUNE. 836 2238. Evgs. 8. Thurs. 3. 

Sat.. S.DO and. ffOCL 

Muriel Pavtow as MISS MARPLE in 
i Third Great Ycir. 

GARRICK THEATRE. 01-83B 4601. 

Evgs, 8-0. Wd. Mat, 3.0. Sat. S.15. 8.30 
In the 



GO TWICE " S. Moriev. Punch. 
- ~ - Barnes. 

■GO THREE TIMES." C. Barnes. NYT. 

GLOBE THEATRE. 01-437 1592. 

Opens Toniohf 7.0. Subs. evgs. S.tS. 

Mats. Wed. s.o. Sat. 6 and b.ob. 


RAYMOND -REVUEBAR. CC. 01-734 1593 
At 7 p.m.. 9 pjn.. 11 p.m. 'Open Suns.). 
PAUL RA YMO ND^ presents 


Fully Air Conditioned. may 
drink and smoke In the audltorlom. 

ROUND HOUSE. 267 2S64. Evgs. 8.00, 
present the London premiere of 

ROYAL COURT. _ _ . 730 1745. 

Eves.' 8. SaL S end E2D 

by Nlprl Williams 
" Stunning new wav.” F,_ 

. Timas. ■' Biases 

with life and force/' Gdn. See also 
- Theatre Upstairs. 

ROYALTY. Credit Cards. 01-405 8004. 

Monday -Thu nulay_ Evejilngt_ 8J10. 

5.30 and BM. Saturdays 3.00 and 
' i's crttlcz vote 

London's .. . _ 


Best Musical ot TS7T 
Bookings -accepted. Major credit cards. 

Conference? Seminar? 
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Film Preview? 
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There's no need to hunt around the West 
End for a suitable venue or viewingtheatre. 
j The FT Cinema, here in the City, offers seating 
in comfort for 50-F people. Full 16mm film 
projection facilities. National Panasonic Vz n colour] 
video tape and Philips 1501M video cassette 
viewing. Eiectrosonic 3601 slide presentation . 
system. And luxurious private dining rooms with 
extensive catering facilities. 


All enquiries to the Press-Officer.. . 
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WAREHOUSE. Dor mar TIkati 

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Str.ndberg s , THE DANCE Ot 
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A WHORE In repertoire. ARM 


rEVflS- 8.30. Fri. and SaL 

Raul - . Raymond aresjmu the' 

lex Revue ol the CM 
Due IP overwhelming pane; 

season extended. • 


^ MW.' 




" Takes to unprecedented lum 
permissible On our stages. 
You may drink and sm* 

WYNDHAM'5. B36 3028. C 
bks. 836 1071-2 from « *■ 
Mon.-Thurs. 8. Frl S SA L 
VERY FUNNY." Eicolnfl 
Mary O'Malley'S smash-hit 
"Supreme comedy on sei inn 
. Dally Telegraph. , 


YOUNG VIC (near Old Vit). 
Tonight 7.4S Rural SltafcMBMJ 
In MACBETH. (This wKk MK 
returns on door I 


8861. See. Peris. All Seats Bo 
& Sun. 2.30. 5.30. 8j30 
Sun. 2.00. 5.10. 8.10. 

Tubei. 485 2443 . Bressws T1 
PROBABLY IX}. 4.JS. 6.50. 

CLASSIC 1, 2. 3. 4, OltWd 
Tottenham Court Hd- Tube). • 
It Bertolucci S tBOU Part l » 

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Comedy. Directed witn 
Roberi." Surerav Ejbres*. F/pg. 
(eot Sun.). 3.35. 8J50. 


other Stare. TOMORROW 

fflb. ‘SJas.'SSi- 

Fri. and an wraps. Sat and 5* 
leu shows- 

ODEON. Leicester Smrare^ JE' 


All seats may be 
10.00 a .rn. prog. 

ODEON. March Arch. 'JZ?? 

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: financial Times Wednesday April 5 1978 

Television" v 


away the future 


Every now and then a pro- 
gramme is produced which 
seems from all the advance pub- 
hnty in Radio Times, Press hand- 
outs, preview columns and go on 
to promise to be . quite an ordi- 
nary, unremarkable- thing, but 
wbicb- then sneaks put - of the 
cathode jay. tube into .your sit- 
ting room and — in a manner of 
speaking — whacks you round 
the ear with a cricket bat 

It happened on Friday .with an 
edition .of BBC2's Horizon called 
“ Now The .Chips Are Down.” 

By its very nature,- of -course. 
Horizon is rather, more . likely 
than most programmes to pro- 
duce this sort of effect. Being (as 
I assume, anyway) concerned 
with the idea of keeping the in- 
telligent layman provided with 
continuously revised and rela- 
tively easily interpreted -maps of 
territories being explored by the 
sciences, it is a lot more likely 
than — - say — Gardeners’ World 
or Coronation Street to present 
the viewer with mind-blowing 

B BCl’s To-morrow’s World, 

Which recently celebrated its 
Suotn edition, may occasionally 
come up With a programme hav- 
ing a similar effect But the 
early evening slot ( implying a 
lot . of child viewers), and the 
long standing , traditions of 
To-morrow's World, have brought 
to the series, the sort, of mechani- 
cal geewhtaery that was once, 
and to'-' some' extent still is, 
characteristic of the Science 
Museum. There is nothing wrong 
with that*. Tomorrow’s World is 
not only informative but often 
highly entertaining. ■- 

The great strength, of Horizon, 
however, is that its editors, in- 
cluding Simon Campbell-Jones 
who is nbwj "in' -charge-, always 
seem to have been willing— in 
fact keen — to move outside the 
purely mechanical or theoretical 
aspects of -science and to look 
piercingly and. often' sceptically 
at the social applications and 
effects of whatever scientific 
marvel or horror may be the sub- 
ject of the. week. 

Last week it was microproces- 
sors, and if Edward - Goldwyn’s 
account of the development of 
these little silicon chips (hence 
the title) is .anywhere near 
accurate then the extension of 

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Horizon to allow for a studio dis- 
cussion was, however unusual, 
still nothing like enough. It 'was. 
in fact, one of those rare pro- 
grammes which arc so interest- 
ing that even though they 
impress you greatly they also 
leave you .seething with annoy- 
ance that they have not gone a 
great deal further. 

“ Now The Chips Are Dowd " 
begged at least as many ques- 
tions as 4t answered. It started 
with a history of the micro- 
processor and in the first few 
moments declared that they are 
u the reason why Japan is 
abandoning Its ship building pro- 
gramme.” Unless I missed some- 
thing. this odd claim was one of 
several things . the programme 
never explained. Another was 

exactly what a silicon chip is : it 
may be. enough for some to be 
told that It replaces transistors 
which in turn replaced valves— 
but others among us still need 
In he - told exactly wbat 
transistors and valves do. (Or 

The growth of the „ chip 
industry in “ Silicon Valley,” 
spreading outwards from 
Professor Shockley at Stanford 
University, via the Fairchild 

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Brenda Bruce, Tom. Conti, hn Ogi^y and Zoe Waoamaker in ■ The Beaux’ Stratagem.' 

Company, was graphically 
conveyed. The industrial 
process by which the chips are 
manufactured was intriguing, 
but less clearly explained: 
nobody ever said what silicon 
is, so hearing that a second layer 
in the microcircuit *' grows " 
over the first was a little baffling. 

Yet haste was understandable, 
because it was the uses of the 
chips- that really concerned 
Goldwyn: it was, he told us, the 
silicon chip that made possible 
pocket calculators and digital 
watches, and with the digital 
watch Europe lost a £200m. 
industry to America. It was the 
silicon chip which was used to 
turn petrol pumps into automatic 
dispensers— thus making pump 
attendants unnecessary. 

Now supermarket checkouts 
arc moving in tbe same direction, 
and we saw warehouses being run 
by machines using chips. Horizon 
did not actually show a mechani- 
cal television critic, but it did 
show how two or three “word 
processors ” can do the work -of 
10 typists, given a series of 
standardised paragraphs. Other 
industrial applications rapidly be- 
came obvious, and the pro- 
gramme even touched on 
automated medical diagnosis and 
farming, showing a tractor eerily 
ploughing a field without benefit 
of driver. 

The programme's normal 50 
minutes came to an end with tbe 
assertion that there had been a 
terrifying silence from the 
British government on the ques- 
tion of what effect this revolution 
would have on society. And for 
once the word “revolution” 
seemed quite justified: the pro- 
gramme had done enough to 
show that l-he effects of unlimited 
use of microprocessors could con- 
ceivably be as profound as tbe 
effects of the first industrial 

The studio discussion, chaired 
by Richard Kershaw, which fol- 
lowed had a highly impromptu 
look and feel about it. which was 
not particularly surprising since 
it was not billed. Nonetheless it 
did manage to cover a lot of 
ground: the organisation of a 
society in- which lifelong work 
may no longer be common; the 
problem of distributing wealth 
once machines have taken over 
much of the work: Britain’s 
standing in the hardware and 
software markets, and so on. 

It was a brave and certainly 
an interesting attempt to pro- 
vide a suitable commentary on 
tbe startling facts brought to- 
gether in Goldwyn’s programme. 
And it should be emphasised that 
the programme zoos one of the 
most arresting .to have been 
broadcast in years.. 

It is possible, I suppose, that 
it was a- lot of fuss about noth- 
ing; or at any rate that Horizon 
bad vastly overestimated the- 
significance of microprocessors. 
But if so tbe programme should 
never have been- shown. 

If not, and the importance otf 
these little chips was estimated 
fairly accurately, then the criti- 
cism that must be made is of- a 
broadcasting system which will 
allow such material to t>e tucked 

away in a programme on an 
avowedly minority channel, not 
even starting until 10.15 by 
which time most viewers have 
switched off and gone to call the 
cat in from someone else’s 

It is as though the Financial 
Times were to have a full 
account of an impending 1978 
Wall Street crash, and insist 
upon tucking it away at the 
bottom of page 29 because that 
happens to be the place for news 
abont foreign banking. 

Perish the thought that- the 
workings of Fleet Street as a 
whole should be held up as an 
example to television, yet it Is 
worth noting that when the 
Rome correspondent (or the 
political editor, or the science 
correspondent) of a newspaper 
feels that he has an item worthy 
of leading the paper, be will say 
so to the editor aDd stand a fair 
chance of being given plenty of 
epace on the front page. 

What this Horizon really 
needed was a pair of 50 minute 
programmes plus a 50 minute 
discussion on successive nights — 
or better still a whole evening 
devoted to the topic. Further- 
more the duty or the BBC as 
journalists was either to put it 
on BBC1 or to promote it a lot 
more heavily on BBC2. 

The argument of the broad- 
casting mandarins against a 
flexible scheduling system allow- 
ing this sort of thing to happen 
much more often ia. I suspect a 
lot of doctrinaire claptrap, hav- 
ing rather more to do with 
anxiety over ratings than any 
consideration of excellence. 

The irony Is that since the very 
beginning of BBC television, 
drama has occupied a special 
place, with few of tbe restrictions 
suffered by current affairs or 
documentaries in terms of tailor- 
ing material to fit slots. Thus 
James Cel Ian Jones’s production 
of George Farquhar’s 270-year- 
old Restoration comedy The 
Beaux Stratagem was able to run 
for two hours and five minutes 
right through peak viewing time 
on BBC1 on Sunday night. 

As it happens it was a hi ghly 
successful production, having a 
big cast with no weak links, 
beautiful design by Tony Abbott 
with every scene photographed 
against a dark brown or black 
background which suits colour 
television wonderfully well, and 
with direction from David Jones 
which sustained the required 
pace but eschewed the tedious 
tricks which some other directors 
have felt necessary in televising 
Restoration comedy. The play 
itself has lasted incredibly well, 
perhaps because it contains more 
steel 'than most of its contem- 
poraries. ' 

It was very pleasant .to finish 
the Week with a whole evening 
of Farquhar. But surely we 
should be allowed to spend an 
evening also— just one — on the 
course of the current industrial 
revolution which, according to 
Horizon, is going to alter not 
just the lives of our distant 
descendants, but our own — and 
pretty soon. 

S' — '.v 

Chicken Soup with Barley 

by B. A .. . YO.U.N G . 

Lcwjard Burt 

Martin Friend, Adrienne Posts and Barbara Young 

Sarah Kahn and Harry Kahn, 
the beads of the family whose 
fortunes Arnold Wesker follows 
in his Trilogy, meet defeat in 
different ways. Weak, idle, 
shifty Harzy sinks willingly into 
his final decrepitude, not caring 
(as Sarah says) to live and not 
caring to die. Sarah, who has 
tried all his life to nag him into 
manhood, remains unchanged 
over the 20 years’ span of the 
play, a convinced Communist 
with no knowledge of economics 
but - a sentimental belief that 
Communism — Socialism, she 
calls it — will bring universal 
happiness at once, and a devoted 
mother who. against any 
evidence to the contrary, is sure 
of the sterling values of her 
children. They are splendidly 
played in their different ways by 
Barbara Young, erect, dicta- 
torial. pertain of the socially 
therapeutic value of cups of tea, 
and Martin Friend, capable even 
after two strokes of hysterical 
bad temper if thwarted, but not 
capable of controlling his bowels. 

Around them, their society dis- 
integrates. Monty, most aggres- 

sive of tbe antl-Fascists in 1936, 
runs a greengrocers in 1955; 
Dave, the only one to fight in 
Spain, is disillusioned by 
Stalinism and builds hand-made 
furniture in Norfolk, taking 
Sarah’s daughter Ada with him. 
Young Ronnie, who at school was 
to be the great Socialist novelist, 
becomes an unhappy cbef in 
Paris, disillusioned not only with 
the Party but with life. 

Wesker charts this progress 
with masterly understanding. His 
characters are portrayed, not 
necessarily in prolific detail, but 
in just as much well-chosen detail 
to make them live as part of the 
landscape of East End society. 
Life in the Kahns' home involves 
one as if one were a long-stand- 
ing part of it, whether in the 
exciting, hopeful days in 1936. 
when the revolution seems at 
hand and the terrible sound of 
militant politics grates through 
the door, or 20 years later when 
despair is kept at bay by Sarah's 
strength, her naive creed sustain- 
ing her as once a bowl of 
chicken soup with barley sus- 
tained her sick girl. 

Bishopsgate Hall 

Hamish Milne by dominic gilu 

Hamish Milne is the pianist 
whose record debut of Liszt- 
Busoni and Reubke on Oiseau- 
Lyre made such a striking impres- 
sion last year. He is not new to 
the London concert platform, but 
his - appearances are compara- 
tively rare— too rare for a pianist 
of his unusual gifts; quick sym- 
pathy and an impeccable tech- 
nique in the service of an 
authentic full-blown grand- 
romantic manner, never over- 
blown, but carefully controlled. 

Milne's second record, recently 
released (a double album on 
CRD 1038/39), is devoted to a 
survey of tbe work of Nicholas 
Medtner (1860-1951) — and in his 

lunchtime programme for the 
City Music Society yesterday he 
included three pieces from the 
disc. Three Hymns in Praise of 
Toil, short, affectionately Rakh- 
maninoviac essays which Rakh- 
maninov himself reputedly much 
admired, delivered by Milne with 
attractive poise and lyrical 

He had begun with Busoni’s 
arrangement of the Bach “St. 
Ann " prelude and fugue 
grandly conceived and power- 
fully weighted; and by contrast a 
Chopin A flat Ballade more con- 
strained, at its climax even 
rather oddly understated. But 
his finale of Schumann's Presto 
passionate ■ op. posth. (a re- 

Air Gallery, WC2 

Campiello Band 

After some lighter-hearted 
forays into crypts and foyers at 
the National Theatre, the Ser- 
pentine Gallery and John's, 
Smith Square, Michael Nyman 
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 
bizarre collection of Instru- 
ments: but the camp in .Cam- 
piello has cooled; tbe mote ex r 
cruciating Verdi amngenlents 
have been discarded; and even 
tbe players of the hon-ehromatic 
instruments like curtals, shawm 
and bombard, as well as tb£»e 
of the tricky rebecs and- lyra de 
braccio, have been persuaded, 
more or less successfully.-of the 
virtues of playing in tune. 

The' programme on'TSonday' of 
the Camp! ello’s " first, serious 
London concert, given at the Air 
Gallery In Shaftesbury Avenue, 
was devised and . composed by 
Nyman himself, - and strictly 
speaking contained no arrange- 
ments at all. -Closest perhaps to 
the genre, at least of sassy re- 
arrangement. was • In Re 'Don 
Giova n n i fhe first 16 bars of fte 
Catalogue Aria dismantled and 
■ exuberantly . reassembled .for 
piano, . two ' violins, banjo, 
euphonium, bass clarinet and 
Chinese flute : though in its new 
form, far more like a mediaeval 
Paul Alika'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- 
tnxes— no working of great 
sophistication, but nothing either 
predous or coy; a refreshingly, 
id- " 

good-humoured programme of 14 
shoft pieces, none long enough .to 
labour.' brief facets and reflec- 
tions of a single view. 

(The most abstract of the con- 
ceits, a single piece called A 
Wolfe Through H, part of a larger 
Projected work, gave ' a formal 
framework to the sequence, re- 
appearing four times In different 
guises: at .first , a long-sustained, 
slow-shifting chord held against 
piano rippling— like Philip Glass 
with a spoonful of sweetener, bat 
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 
sudden dramatic force; the last 
a swirl -of 16th-notes. virtuoso 
elaboration, driven to a sudden; 
breathless end. 

• - And along the way, beside the 
Wolfe, variety of views, even it 
essentially of the same scenery 
—some of them unexpected (Is 
It a Fact That Mice are attracted 
bp Music, .the most grandly 
orchestral ..of the pieces, offered 
a- positively Wagnerian solo for 
amplified jebec in juicy counter- 
point with the ensemble); others 
less adventurous, and as tbe 
sequence progressed, a shade 
more predictable* Pretty Taft 
for George- Brecht was one ex- 
hilarating exception : a musical 
layer-cake on the Capern’s Bird- 
se&d label, very funny, and in. a 
wry way. very touching. Repeti- 
tlons Can; and do. become repeti- 


Tammy Steele in G & S 

Tommy- Steele is to play Jack hanbor and experience with 

Point in a large scale open air monetary ■terms,'' he- said. ; 

Pomt m a iw s „■ * Wik he worried about appear 

production j)f Gilbert wd Sum . wia; profesS9na , PP era 

van's The Yeomen of iae-.Gnoro te Hy main. problem is 

in the moat of the Tower of oot -fbe notes so much as the 
London. diction. Unfortunately, it is not 

The production, by Anthony in- Italian but In English, which. 
Besch and involving several of is the worst of my languages, 
the country?* leading opera .* The producton is bemg spen-. 
singers, will have a four 'week iored by James Burrough Ltd, 
season from. July 17. to August dktiHere of Beefeater Gin aqa 
jo represents the company s most 

"it is being presented by tbe important sponsorship mvoive- 
City Arts Trust, to. mark 'the menu to date. - 
900th anniversary of the ■ -Tower \ A stage will be erected tii the 
of London's White Tower and Tower. Moat, with the Tower 
will be. one of the highlights of proridlngAyectarolar^dro^ 
this year’s City of London Festi- There . wfll- be- seating jar 
uu. a ~ V enabling a potential audience of 

Mr. Ste& tbid -a Press 'con-' more; than ■ 70,000 for the -24 
fe recce yesterday that be- bad performances. *___ 

cancelled engagements . in Las . Soloists will Include Anne 
V? g M and LaKeTahoe to play QoVzos . Paul Hudson^rryJe^- 
TaekPotaE " r kins. Delia Jones, Larareen Living- 

& He would be appearing ior:‘.^«we amd-Tom McDoimen. The™ 
lot less than Ws usual fee. “ But will be a professional orchestra 
I don’t think you can -equate the and ch[»rus. 

Festival Hall 

Perlman and 

After their much-praised 
recording of all the Beetboveo 
sonatas for violin and piano, 
Itzhak Perlman and Vladimir 
‘Ashkenazy are repeating the 
cycle on the South Bank. They 
began on Monday with two of the 
little op. 12 sonatas and the 
“Kreutzer,” with the. rest to 
come on the next two Mondays. 

The studied sympathy of tbeir 
duo-playing does not disguise 
tbeir distinct musical personali- 
ties. ' Perlman is all serenity, 
long-breathed lines; finely even 
tone; if he experiments it is only 
in private, and the public results 
are self-effacingly secure. Were 
It not for the 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 coming upon 
this or that passage, and turns 
Jt to a new angle as if to view 
it- better. In the D major Sonata 
of op. 12 on Monday he was on- 
wontedly cautions, as if uncer- 
tain at that- stage: how much he 
could, do without overbalancing 
-the violin — or perhaps the music, 
.which is. 'not the strongest 
Beethoven, simply prompted 
nothing more. Even the Rondo 
was. only moderately sprightly. 

Both players warmed 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 Rondo; 
the semiquavers took possession 
of his fingers, leaving the 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, as simply mer- 
curial: showers of silver broken 
by brlet 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 tbe only 
possible view of the Sonata, but 
a takingly lovely one. and 
realised with effortless grace. 


Four Oscars for ‘Annie’ 

The only controversial note 
struck at the 50th annual, award 
of “Oscars" by the Academy of 
Motion Picture Arts and Sciences 
in Los Angeles on Monday night 
came from actress Vanessa 
Redgrave ■ who, when receiving 
an Oscar- as best supporting 
actress for her performance in 
Julia 1 made - an acceptance 
Speech which was regarded as 
“political," by the 500-strong 

For tbe rest, the awards .were 
typically unadventurous. As 
expected, Annie Hall, came 
out top, winning 'the best film 
award, the best actress award tor 
star Diane Keaton, and two 
Oscars, for best director and best 
scriptwriter, for Woody Alien. 

It was perhaps surprising that 
Richard -Dreyfuss was voted best 
aetor • for The Goodbye Girl, 
but once again it was inevitable 
that Star Wars should' do well 
in the -technical categories, pick- 
ing up six awards— for sound 
effects, special effects, art direc- 
tion, costume design, scoring And 
editing. -■ 

For the second year running 
Jason Robards was voted best 

supporting actor, for his role in 
Julia, The best. song was “You 
light up my life:" the best 
foreign language film, Madame 
Rosa, from France, tbe, best live 
action short “TU. find a way” 
from Canada, and the best 
animated short, Sand Castle also 
from Canada. 

.... AT, 

Josiah Wedgwood 
exhibition at the 
Science Museum 

One of the most important and 
extensive exhibitions in the 220- 
year-o!d history of the Wedgwood 
Company is being held at the 
Science Museum; S.W.7, until 
September -24. The exhibition 
traces the life and works 
of Josiah Wedgwood (1730- 
1795),- founder of the world- 
famous pottery company. 
Numerous aspects of the man 
known as the “ father of English 
potters ” are depicted— including 
his pioneering developments and 
his major “contributions to the 
arts; also his personal life and 
humanitarian principles. 

1 txnyi 

2 General MotofS 
3Fonj Kotor 

4 feaco 

5 MoM 

6 Standard 03 oF Cat Foma 
. 7.GJI oa 

8 international Buanes Madt 
9. General Eleetie 
JO Chrysler 

1 1 International V STeL 

12 Standard Oil (ndana) 

13 SMI Oil 

]4 US Sled „ . 
liMIaniic Richfield 
16 L L du Rail de Nemours 
17.ContmfnIal 0*1 
14Vteiem Beane 
19 F>rocv*4Gambte 

2f.U*<yi Carbide . 
J2.Vtel»rg>w^ Bectnc 
23 Goodyea' TneS Rubber 
RaSpr, Petroleum 

?b QmJenla' Pelrolaim 
.27.mtefrutonal Harvester 

28 Eastman Kodak 

29 Sun 

30 U man 03 of Cafiforna 
31. PC* 

32 Esina* _ . 

33 Bethlehem Sled . . 

34 Rockwell fnlernitirnal 
35rUr«t« Techjxfc©es 
3txCat»»pila/ Tractor 
27. Kraft 

38 tetritt Foods 

40.Xerv . . 

41 R.1 RcvocJds Industries 

41 AsWand OT 
44.Generai F«ds 
4o Fvnteme TueiRubber 

43 Amerada Hess 
49. Greyhound 
50 W FI Grace 
S l-HcOcnney Oouebs 

52 International 8»er . . 

53.Wmneo»a Kin r^lHIg. 
65,WaraftDn Oil 

56. Coro, rental Grwo . 

57. Gut»&Vfeslem Industries 

53 Ration Punra 
£9. Borden 
bttUilon Indudres 

61. Lockheed Aipalt 

62. Sp err y Rand 
tij A row SJe-ei 

64. Amman Can 



f.V (£$__ 

. HMurmum C? of Amenca 
73. Standard ft KM . 

7< Champion Mernalonal 

75. Wwernaeus« 

76. Material aeel 

78 CmnWsM Foods 

79 CPC Intwialwal 
lAmencin firando 

101 Dresser Industries 

102 CBS 

103 Carnation 

101 tom 2e0erbach 

105 Sarjer 

106 Manere 

107 American Cvanaad 

108 Hevncte Metals 

109 teu Bee} Process's 

111 r>-«ai TireiRubter 

1 12 B. F Goodrich 

113 Bristol Mrers 
1’4 tie*r-McGee 
115 Wrtvne 

1 1 7 [nwcoLfRand 

119 HJ Hein; 

170 BurtC -ChS 

D’&B&nar . , 

li? hawf Aiywnym 4 Chemical 
122 Farmland Isd Lillies 

124 Central Sota 

125 Combust" En^r-eeiing 

126 Standard Branca 
327 Eaton . 

12? Harm American FYnfipS 

1 20 IC t-Ciitni 
12! Nana; Sium 
132 Merck 

333.V.4S Indfiwfli 

1.-4 American itaidiTj 

l.*5 -L Reps Fate'. 
HGCaircteU Soj5 _ , 

27 A-uxuied Met P-jd-jcera 
ii Arr^fr Darnels 
2? WfjrlMol 

40 irkes • 

41. Mead 

342 HrO! , 

143 Krrrten. Ctafk . 

144.Nr.r1h«^t Ind.C'jUS 


Ufto Ait Fulmers 

147 Emeir-an EteslrC 

148 Grjmman 

149 Mtisr-a 

150 GJWte 

151 Aroa nia _ 

352. Pa-1 IrJudiiiS 
3‘. F- aehau' 
l c 4.Q-ja*« Data 

1 5c. Anhe.-serBus^i 
157. Avon P-cduCLi 
15-3 Del M :me 
3 59. P.fct .ir. 
jii/l JP'.-evecS 
762 .Aj*j«- 
is- Olin 


367.D.JT,on; i^iTjeck • 
liSHM* Holer 
3 69. US Ir.jLSUdS 
170 American £r«cadjrg 
17! ti L.iy 
172 Cmlv-i DA 

1 7- . jfirs- Wa n iJs 
175.NL irrr.sircs 
376 HtuLtiS 
yr J.m Wane- 
178C:it inCLii'ies 
379 NorVri. _ 

IrAOiik _ 

501 AMF 

202 Emhait 

203 Astno _ 

504 SlauHer Chemical 
205 Slerlng Drug 
506 Geo A Horn*} 

20J United MetchanUiMfis. 
roe Dai* 

509 Abbott Laboratories 

510 D*nsOnnw Ftemlas. 

511 Commonweiltfi Oil Rtfming 
5]2 American FWrclina 

51 2 feoro Parc4eijm 

514 Foster Wtieefer 

515 Budd 

516 GAF , 

51 7. Tune In^ 

513 Cumrrnrts Engine 
519 Comtfig Glass Wcrte 

522 Kaiser industries 

523 Pel 

524 HjGra»Ede«n 

526 Unci Camp _ ■ " 

526 Williams Companies 

527 Paccar * 

253. Jr s. 5thBtr Brarring 
553 Momhr Gil 
520.Annslr3rig Cork 
I'il.Zendti Rado 

5 12. Times Minor 
533 L 1 £. Gvpsum 

524 KemecoU Copper 

5 26 Revlon ' 

536 Sunbeam 

227.C.miatr« Ccm of America 

525 6tier»in-V6Htoims 
523 Fc'iamul 
54Q.Ptvdps Dodae 
5-l.Jo»pti E oear rams Sons ■■ 
liiChramaibv Arnertein 
54?.Wheeliti?.Pittstii;rch Sleri 

544 AlMhenr Ludium Indusuics 

545 VieSiai-j 
246 Natcnai Can 
54gfipjn CoikSSear 
5*9 Cerrc-Mamkan • 

2&CI. Cabled Co uKe 
562.Domoml Inlem-Smal- 


CM.SfenngPtetirii " , . 

K6 lititwCnBensTaiJ 
2%Bi?«n Group 
5? 7 Pati.iy CpjJ 

569 'jrAj! Northern Nefc»a 


56! Warner CanmcnEalons 
5 c 2 Coor 

263. A E. Glatpr Manuftcfurfng 

2 : Are FraductifiLCftfliKal; 

565 Elm -. - 

566. MEPXL : 

567. MCA 

Kair.tanj'Innal MtiffiftalS 
569 Kan?MJ>er 
570. Ewrs Prjdccta 
57LS*. Js t4neral5 

575. P?mt»it 
ri G.D. Svaf* 

5 74. Arrc’ersjn. CZjif flfl 

576. L"ier Brcttiers 

576 Bicli-lD^^r Mamifarturifig 
277.CtiKeirrc.UEh PofidS 
1 73 Trans Unrjn 
579 mchotdon MerreH 
Z?J QiUa^aai 

301.ACF Indus) nrs 

335 Joy Manufacturing 
5u34.Anchor Hocking 

305. A ven 

306. Mohasco 
307.Scot«B Manufacturing 

309. AUM 

310. ) 

-10 A0. Smlh 
311. Springs MiSs 
312-feieral Signal 
313 Carborundum 
314,Naional Gypsum 

316 S^erryiHulchinsjn 

3:7.Newnont Mmine 

31B. MortoivNciriiricrrTProd'JrfS 

313 Patel Breenng 


32L Adolph C«cs 



324. Npnn 

325 Radihnld QianaJS 

326 Cone Mills 
3J7RR. DonnefleyASons 
32$ Hershev Fools 

.^23.0uttxuid Marine 
. 330 Duett.- Peatwjy 
221.Chjcap> Bralgeiilroa 

322.TKumieh Product- . 

334. Addrcviograph Muttijaph 
o3 5 Hoowr 
:-i36.Wit«, Ghenwal 

2?5 LQUrto-in^P.ioS; 

335 Stanley Works 
JjO-C^er Irxtusnes 

’ 34Z'.Bdker International 
343 CtoVeukdaled Aluminum 
344. Southwest Forest lrdudnes 
oJS.IASHametle lnduUres 
■ 34&0cnAgra' - 
- 34’ Pitaev&nrtS 
34 5 Federal Co 
ofV.Hat Schaffner&Marx 
3d0 hmont 

351. M. Lpmnstem A Sons 

J52 Atutnat 

3|3.Sguare 0 ' 

■354. Cr hdnsfries 
d55. Indian Head 

356. AMP 

357. ATO 

. 353 Fainnonl Food 5 
259 Great Wfelem United 

362.0iarrpon Spark Plug 
Thomas J Urtori 

W. Mctouth Sieet 
465 Down'Centrai Petraleufli 

.to-b6 Hc«m« WikJcrt 
^'.'i’.Becton. tfirtirisar 
3ov ; lW IndiiOrfci 
3^9. Pea i^/ 
iZy-FpritWe ■ 

371. L-tt« McNa&tiUv 

372. Dan 

37iArnrted Industries 
mere Cbppe i3rasS 

37t.MjicmiIfan _ 

377.Cessna Aircraft ' 

^£.Ward Foods 
3. : 9.BuoirtisEne 
3 cj7.Com InduSriPS 



iJ3 Gsrdr.sf-Derw 

404 Fane. Wd Camera JLlrctc 

405 Supenor Oil 

405 Wesmwrdand Coal 
409. Trane „ 

410 Interslale Brand? 

411 Koranee Industries 

412 Federal Mcgui 

41 ? Quaker Stare 03 Raining 

414 BwWvuy Glass 
41-.Xorrc Industries 
417. HP Hood 

415 h*flBc>:d 
419 MAPCO 
4jO.Ma:n , 

421 indtrJnes 

42^ Cameron Iran VwnS 


4’4 Ehvntedi 

47 5 Midland Ros 

426 Ganrntt 

42? tfuCan Materials^ _ 

428 Aqnon HcnstlDemdc 

4j9 PaiKN-Hanmln 

421 Eagle-prfier Indcstiia 
4i2Arvin irriurtries 
4 '2 Ball 

4 24. Wiselatiralw.Fr.v 
4JS. Inland Cfinta mv 
426 Natomas 
4?7 Federal Paper Bean! 

4.--? Warnac? ■ 

439 Fk“.‘sa>/ Enlerprias 
44 L Rath Packing 


44IGene*ii Inslrunwnt 


J4«i Mont art of Colorado 
447.rjaiL3 Cnemical 
44 9. Hughes T:al 

449 Jjnjihan Logan 

450 FU-.drland Induotrss 

45!. Ferro 

49?.'AbshiirBton Brt 

452 Gertw noducls 

454 Hrrter 

465 Haries 

43-;. Wn Wrlgky Jt 

4 ' '.Tekrrcnii 

4-.f il Cinema 


4/j.Dair.lw Coopsati* 

4- i.Hanna 
4^.2.D:« . 

A^rv tnCeiratsUl 
4r*-liS.R , er 
A—- H K. P.iier 
4.^7. Nash ja 
<r ? Bees Petrofe’.’m 
46’* Fro-jeriskAherrud 
47 .'.hoenrng 
4'! D.« Cum.-Jg 
4~:.T-isr:!iKh Ceolsrvdcx Faro ‘ 

4 T 2.r?kr. E'rre* 

2 2 oenera: C:rfe. 

4‘5 Ba'j.rtiiLciirD 
4 V ManrijiHaimift 
dTi-Bensl! A-rrra" 

47; I|IV.v hdurtlifi 
47 * Louiiana Land-4 Eip?ntion 
4?0 r-elcciftl Hill H 


v3.lriand Slt»3 
93 'torneriaritart 
Si Amenca n 


93 Bortrirton hdualries 
W JJniled Brands 
lDiPFG tndudno 

! 4 Ch.:r*e- 

Y-ii fc: -.rm! DtftefiCiericd 

1 17 _ 
399 Co-rv _ . . 

HfJL . 

impM is. 
5-2.Lrjr S“:> 

592 K 2 miwrm. 1 l Rarer 


39ft Rdaete Dcctic 
G^eml Huil 

393. Green Gant 
& Cannon Mms 

3W Amerian Bakeries 

495 Feabod* mtemattnal 
J?9 HK«er BailtEbuuig 

When you consider that more than half of the 
biggest U.S. industrials do business with Marine 
Midland, you get a good picture of how big we are. 

Infect, our deposits total S10.2 billion, with $23 
billion in personal savings. WeVe got S638 million in 
capital and reserves, and assets totaling $12 1 billion. 

As much as these numbers tell you. they don’t 
say weVe been amajor money center bank for many 
years. Which means weve got enough experience in 

r * — « 1 1 /H im Q nmr m irm imm onf 

loans. And manag e major international credits. We can 
also assist in generating funds in other capital markets, 
through our associates. 

Of course, Marine Midland has the facilities to 
carry this out With our base of international operations 
in New York City's financial district, we have 300 
branches throughout the state, and key people in 22 of 
the world’s major financial centers. 

Some people may not expect all this from us. 

AmnlT J IVflt iamro^ Imm 

years. Which m eans we've got enough experience in Some people may not expect ail this tram us. 

foreign exchange and foreign currency management to . But after aH, Marine Midland is the 12th largest bankitt 
generate major money transactions. To provide direct' the United States. 

MARINE MIDLAND BANK0 M Genres as ol December 12,1971 

£ \ 

The musical speech of the 
first - generation - English East 
Enders Is bandied with great 
skill, its intrinsic humour never 
self-conscious or intrusive, 
(bough I did feel that some of 
the comrades were using vowel 
sounds that would have seemed 
a bit posh to their mates. 

Tbe production, under An- 
thony Cornish, is a good one, 
inhabited by a company easy to 
believe in. Perhaps Frank Baker 
looks a good deal too old to be 
a 16-yea r-o Id schoolboy in Act 
Two (though it’s fascinating to 
watch him in the mannerisms 
that, when Roots comes next 
month, we shall see copied by 
Beatie Bryant); in the final act, 
his flamboyant ambitions dis- 
carded. he moved me more with 
his simple distress than with bis 
extemporised poetry ten years 
before. As his sister Ada. 
Adrienne Posta is truer to life 
as the gamine activist in her 
teens than later as the im- 
mensely smart political drop-out 
complaining of her fellow- 
workers' lipstick. 

jected last movement for the G 
minor sonata) took fire: splendid 
account, beautifully shaped and 
detailed, nicely capped by the 
Liszt-Schumann Widmung for an 
encore. Milne has played enough 
jn little haUs around town: we 
should hear him in the Elizabeth 
HaU soon. 

A practical note: however 
sentimentally attached the City 
Music Society may be to the 
shrill treble and thin, tangy 
middle register of Myra Hess's 
old boudoir Steinway. the time 
is surely not far off when they 
should think of matching the 
high musical calibre of their 
series with a proper concert 

Financial Hines Wednesday April 5 5978 


Telegrams: Flnantimo, London PS4. Telex: 886241/2, 883897 
Telephone: 01-248 8000 

Wednesday April 5 1978 

The monetary 


THE MONETARY indicators 
published yesterday, the last 
before next week's Budget, are 
both better and worse than they 
appear. Take first the drop in 
the official reserve of foreign 
exchange last month. The net 
drop, after omitting various 
special transactions, is 8100m. 
smaller than the gross drop of 
$3Slm. and is tiny compared 
with a total of around $20bn. 
Movements of this size, it can 
be argued, especially at a time 
when exchange markets are 
exceptionally unsettled, are too 
small to mean much one way 
or the other. 

On the other hand, the drop 
of S2Slm. stands against a rise 
of S236m. in February and is 
the first net drop for a good 
mam;/ months past. The change 
in direction may point to a 
change in the climate of opinion 
about the outlook for sterling. 
What is more, the books were 
closed for the month on March 
28 — before, that is, the fairly 
heavy pressure on sterling 
which occurred at the end of 
last week and, to a lesser extent, 
at the beginning of this. It 
mtfy turn out that the actual 
cost of intervention by the 
authorities was not large and 
that leads and lags will be 
reversed once the lesson of that' 
determined intervention — that 
there is no intention of allow- 
ing the exchange rate to slide 

PTecjpitatelv down — has been 
grasped. But sterling and the 
reserves are now clearly sensi- 
tive to the Budget proposals in 
a way that they were not a few 
months ago. 

Sank lending 

The banking figures, similarly 
look reasonably encouraging but 
leave room for the pessimists to 
remain pessimistic. There are 
two opposite kinds of pessim- 
ism, of course, about the 
prospect for economic recovery 
and the prospect of keeping in- 
flation under control. So far as 
the former is concerned, it may 
seem disappointing that the 
sterling advances of the London 
clearing banks are (after rough 
adjustment for seasonal factors) 
up by rather less than in recent 
months and that the increase 
has gone mainly to the services 
sector. But the financial position 
of companies has improved con- 

A new chemistry of turning 
coal into electricity 

BY DAVID FISHLOCK, Science Editor 

O N A hillside near 
Scbenectedy about 160 
miles north of New 
York a research team has begun 
to demonstrate what it believes 
will be the technology of a new 
kind of electricity power station 
in about ten years' time. For 
Britain, the pilot plant has two 
important implications at this 
stage. First, its further 
development could draw heavily 
on research in coal utilisation 
j being done in Britain. Second, 
it could point a way to over- 
come one of the most depressing 
difficulties in power station con- 
struction in Britain to-day — the 
low productivity on ' power 
station construction sites. 

For the past four years re- 
searchers with U.S. General 
Electric’s corporate research 
and development centre near 
Schenectady have been develop- 
ing a new kind of coal-fired 
power station. Their goals have 
assumed that environmental re- 
straints on burning fossil fuels 
in future are going to be very 
tough in the U.S.: that higher 
efficiencies can be achieved; 
that plants may have to use 
coals dirtier than those burnt 
to-day: and that the elecridty 
industry will want highly auto- 
mated generating p lant. 

In the last few weeks the 
team, directed by Dr. Roland 
Schmitt, responsible for the 
energy research programme, has 
demonstrated as an integrated 
system the key components of a 
new coal-burning technology. 
What they have is a system 
which Schmitt sees as the 
quickest route to a new kind 
of fossil-fuel generating plant 
for the U.S. electricity supply 
industry. In essence it is much 
doser to chemical technology 
than conventional power station 

siderably and their need to call 
heavily on bank finance— apart j 
from the fact that yesterday's 
figures apply only to the clear- 
ing banks — will depend largely 
on the maintenance of their in- 
vestment programmes. 

So far as the control of infla- 
tion goes, the figure which is of 
more concern is the eligible liar 
bilities of tbe banking system as 
a whole, which provide a rough 
guide to the growth of tbe 
money supply on the broader of i 
the two official definitions. This 
has sometimes overstated and 
sometimes understated the ! 
growth of M3, and should be: 
taken with a large pinch of salt 
But in the month before last 
its rate of increase fell (prob- 
ably because of the reversal of 
special factors) from nearly 2 
to under H per cent, and last, 
month it decelerated further to : 
0.83 per cent Since the actual 
money supply figures will not be 
published until after the Budget 
this is the best indicator we have 
until then. 

Money supply 

Provided that it is a reason- 
ably accurate guide to the move- 
ment of M3, the official position 
is this. Tbe money supply on 
this broader definition rose 
faster than the rate laid down 
for several months for special 
reasons — first the heavy inflow 
of funds from abroad, then 
window-dressing by the banks — 
so that growth over tbe financial 
year will probably exceed the 
original target of 9-13 per cent 
On the other hand, if it is now 
back again to a reasonable rate 
of advance, there is no point in 
taking drastic steps to hit a 
target laid down 12 months ago. 
That is the official view. But 
there are those who hold that 
strict adherence to targets is 
necessary to maintain confidence 
in the Government’s commit- 
ment to monetary moderation 
and that the much faster growth 
in alternative measures of the 
money stock must be taken seri- 
ously. Since their opinions in- 
fluence markets and the Govern- 
ment has to sell stock. Mr. 
Healey will have to take account 
of them in his Budget— not only 
in his fiscal measures, which 
may well be acceptable, but in 
his new target- for monetary 

A new policy 

THE GOVERNMENT appears to 
have gone about as far as could 
reasonably be expected towards 
allaying genuine public unease 
over the aims and assumptions 
of the trunk roads building pro- 
gramme and the methods of 
implementing it. The recom- 
mendations of the Leiteh com- 
mittee on the methods used for 
forecasting road traffic, apprais- 
ing new road schemes, choosing 
routes, and deciding design 
standards have been accepted. A 
new standing advisory commit- 
tee, under Sir George Leifch's 
chairmanship, is being set up to 
keep these matters under con- 
tinuing review. Proposals have 
been drawn up in consultation 
with the Council on Tribunals 
with a view to improving proce- 
dures at road inquiries. And the 
first of a new annual series of 
White Papers on roads policy 
lias been published, setting out 
among other matters the results 
of the review of the roads pro- 
gramme in the light of the 
Government’s more selective 
approach to road construction 
and the recommendations of the 
Leiteh committee. 

The result of these changes 
will be to create stiffer hurdles 
for future road proposals — 
already 34 schemes costing an 
estimated £90m. have been 
dropped to be replaced in many 
instances by less ambitious pro- 
posals costing in all some £20m., 
while the standards of many 
others have been reduced— and 
to provide a more informed and 
more open examination of road 
proposals at public inquiries. 

Essential role 

What the Government has not 
done, and what it could not 
do, is to change the basic sys- 
tem by which roads policy is 
determined and implemented It 
is for Ministers answerable to 
Parliament to decide national 
policy and to draw up priorities. 
Neither these broader aspects 
nor technical -issues such as tbe 
methods of road assessment 
which are applied nationally can 
be suitably debated at local 
inquiries. New roads can confer 
considerable benefits on a large 
number of people over a wide . 
area, but their planning and 
construction can be extremely 
disturbing for those living in the 

areas through which they are to 
be laid. The role of a local in- 
quiry is essentially that of pro- 
viding an opportunity for these I 
who would be adversely affected, 
to express their objections be-| 
fore a final decision is made. I 


The conduct of these inquiries 
must however not only be fair 
but also be seen to be fair; and 
this iu particular means that ob- 
jectors should have an adequate 
opportunity to test the road 
planners case both for building 
a new road and for choosing a 
particular route. The Govern- 
ment proposes to meet this in, i 
basically, three ways. First, the 
new annual White Papers of 
roads policy are intended to give 
both MP's and local interests a 
clearer and more detailed ac- 
count of the national roads pro- 
gramme — though it remains to 
be seen whether there will be 
any more Parliamentary 'discus- 
sion of these matters than in the 

Secondly, procedure at in- 
quiries is to be changed in a 
number of ways, including the 
appointment of Inspectors by 
the" Lord Chancellor and the 
holding of pre-inquiry hearings 
to decide the programme as is 
now done in major planning in- 
quiries. Thirdly, tbe Government 
has undertaken to make much 
more information available 
about, among other aspects, pos- 
sible alternative routes and how 
its forecasts and standards apply 
to a particular scheme in its 
local setting. 

These .improvements are un- 
likely to appease the anti-roads 
lobby although by raising 
public confidence in the con- 
duct of roads inquiries they 
may help to isolate the more 
fanatical opponents'. The irony 
is that the changes are being 
made when the roads pro- 
gramme is well past its peak 
and when, according to tbe 
Transport Minister yesterday, 
the main inter-urban needs may 
be within a decade or so of 
being fully met. The more 
sceptical public attitude to- 
wards road building could well 
reflect a sense of how much has 
already been accomplished, and 
the Government is right to have 
seen what could be reasonably- 
done to accommodate it. 

Problem of 

The starting point, says Dr. 
Schmitt, was whether the com- 
pany could find a new way of 
“throwing coal into a combus- 
tor.” Both the U.S. and Britain 
have' worked on the idea of a 
coal-fed gas turbine, in which 
finely powdered coal is fed into 
the combustion chamber in- 
stead of a liquid or gaseous 
fuel. The big problem is ash — 
the speed with which it erodes 
the costly materials used 
in a gas turbine. General Elec- 
tric has been searching for a 
new clean fuel to feed the gas 
turbine — one of its big product 
lines — since 1945. 

Its answer is a new kind of 
gasifier, first demonstrated at 
the research centre about two 
years ago. Although a direct 
descendant of a technology for 
making a fuel gas from coal 
that goes back 100 years — and 
thus a less radical departure 
than the fiuidised-bed type of 
gasifier under development in 

Britain — it -nevertheless in- 
cludes big technological 

For example, the gasifier is 
designed to be continuously and 
automatically fed with coal and 
cleared o£ ash while operating 
at up to 400 lbs. per sqaare 
inch pressure, by way of pres- 
surising chambers — like airlocks 
on spacecraft— at the top and 
bottom of the plant. Coal dust 
a problem because it is produced 
in large quantities in under- 
ground mining but tends to be 
blown uaburnt through a gasi- 
fier, is handled by .means of a 
“coal pump.” Hie dust is bound 
with tar into a black “tooth- 
paste” that can be continuously 
extruded into the pressure ves- 
sel of the gasifier, where it 
breaks up into lumps of fuel. 

Almost concealed among trees 
on the slopes of a laboratory 
campus most famous for its 
electrical and electronic dis- 
coveries is a $3.1m. gasi- 
fier called GEGAS-D, built by 
General Electric, burning coal 
at the rate of 1 tonne an hour. 
The contents of its pressure ves- 
sel are constantly stirred to 
keep tiie wall dear of clinker 
and the bed of coal broken up 
and burning efficiently. The 
researchers believe it will burn 
any kind of coal the electricity 
industry may have to accept 

The gasifier is the heart of the 
new kind of power station GE 
researchers believe could be a 
commercial proposition by the 
late 1980s. In effect it would 
replace the boiler, the dominant 
feature of fossil-fuel generating 
plant to-day, and in Britain the 
cause of considerable delays in 
construction because of the 
necessity for erecting these 
huge structures on site. Grain 
and Ince B are examples of new 
British fossil-fuelled stations 
long delayed by on-site problems 
with boiler erection. But even 
for countries such as the U.S. 
where the problems of manag- 
ing large-site construction are 
less horrendous, there is a con- 
siderable financial incentive to 
get as much construction as 
possible done in factories, and 
shipped to site as tested 
assemblies. The GE gasifier can 
be classified as “ advanced 
Luigi ” in gasmaking terms: 
that is, of the type from which 
British Gas has developed its 
famous slagging gasifier process 
for making synthetic natural 
gas. In essence it is a chemical 
reactor, accepting coal, steam 
and compressed air (where the 
slagging gasifier needs oxygen), 
and yielding a Iow-BTU fuel 
gas. This gas, at about 300 lbs 
per square inch pressure, rates 
about 160 BTU per cubic foot 
For comparison, natural gas is 
about L000 BTU. 

One feature of the gasifier’s 
design is how little steam it re- 
quires. a significant economic 
advantage. Another — a safety 
feature — Is how quickly the pro- 
cess can be stopped simply by 
shutting off its air supply. But 
a -feature of all gas-making 


& 3 i 




j — % 









Coal Pump. 



J Gas --Gas 
quench Wash 



Cooler I Reheater tenmal 


How General Electric of the UJ5. envisages electricity will be generated by the late 1980s, using a series of chemical reach) 
integrated with gas and small steam turbines. Top left Is Dr. Schmitt, bead of energy research at .GETS corpora 

research and development centre. ■*■ ; 

technology for the past 100 
years Is how much more of an 
art than a science it has been. 
The GE research team has 
recognised that it has little hope 
of selling its new-technology 
package of chemical units to 
the U.S. electricity industry un- 
less it can show that tire pack- 
age will operate as smoothly as 
conventional electricity plants. 

Tbe clue to this of course is 
the computer. For the past year 
the researchers have been pro- 
gramming a computer to run 
the gasifier, including schedul- 
ing maintenance of the plant 
Within recent weeks they have 
been able to demonstrate the 
integration of all units, by 
means of the computer, into a 
pilot power plant with' the 
potential for turning coal into 
electricity with an efficiency of 
43-44 per cent Britain’s latest 
coalfired station. Drax B, making 
the completion of the Drax com- 
plex. is expected to have an 
efficiency of about 35 per cent 

In parallel with the develop- 
ment of the gasifier and gas- 
cleaning processes the GE 
research centre has been de- 
veloping a new kind of gas 
turbine, designed to operate at 
much higher temperatures than 
those used to-day — in the range 
2.600-3.000 degrees F, compared 
with 2,400 degrees F peak for 
aircraft turbines. The aim has 
been to achieve such tempera- 
tures without the necessity for 

new-— and inevitably still snore 
costly— types of material for the. 
critical -components such as tur- 
bine blades and discs. The 
means has been to use Water 
pumped by centrifugal, forces 
through the turbine blades to 
keep their surfaces below about 
1,000 degrees F. " 

A key feature of this develop- 
ment, in the form of a nine-inch 
diameter water-cooled turbine 
wheel developed by tile research 
centre, is being exhibited this 
month at the International Gas 
Turbine Exhibition in London. 
This one wheel has proved 
capable of generating about 2 
megawatts under test rig con- 
'dftions. GE’s gas turbine 
division is now building a fun- 
scale demonstration of an ultra- 
high temperature gas turbine,' 
under contract to the Electric 
Power Research Institute in 
California. The plan is to 
demonstrate this- turbine run- 
ning on Iow-BTU gas. At the top 
temperature envisaged* 3,000 
degrees F (L649 degrees C) its 
efficiency as an electricity power 
plant could be as high as 50 per 

This ultra-high temperature 
gas turbine is being designed 
for an output of 180 MW. For 
comparison, tbe gas turbine 
power plant based on the Con- 
corde Olympus engine, which 
Rolls-Royce announced last 
week, will generate about 
50 MW. 

the GE turbine will be about 
36 feet in length and 12 feet in 
diameter — big for a gas turbine, 
but much smaller than either 
the turbine, generator or boiler 
— the three big components— pf 
a conventional coal-fired plant 
of the same rating. The 
research programme' has never 
lost sight of the idea that it 
must be possible to transport 
any sub-assembly of its new 
power plant package by rail in 
■the U.S. 

With tbe combination . of 
gasifier and ultra-high tempera- 
ture turbine — expected to be 
the first commercial package — 
GE believes it may be possible 
td erect a 300300 MW power 
station in the U.S. in only 2|, 
years— oh the same time scale 
as new .. chemical processing 
plant requires. The first demon- 
stration . of this- kind of tech- 
nology's- the-Powerton project, 
planned by. Commonwealth 
Edison of .Chicago. This joint; 
government - industry project 
aims tjo demonstrate a 25MW 
combined-cycle plant by the 
early 19SQs. ' 

Britain has a dual interest 
in developments in Schenectady. 
Like GE, which, since it pur-, 
chased Utah International ib 
1976 has had a major stake in 
coal, Britain, has a big interest 
in utilising coal- more effici- 
ently.' Last summer GE and the 
National Coal Board signed a 
bilateral ' agreement on coal 

research. American inh 
focuses particularly on - 
fiuidised-bed types of comb 
under development both a 
NCB research centres 
(under the auspices of 
International Energy Agi 
at the Board’s Grimed 
Colliery in Yorkshire. One 
£17m. experimental presso 
fluid-bed coal combusts, 
Grimethorpe is woridng- 
haps next year— there wi 
a strong case for adding . 
gas turbine. Meanwhile ( 
.commissioning research 
the NCB on its existing 
bed rigs. 

But for Britain the b 
incentive could be the a 
tioqs. of breaking the botfli 
in power plant construction 
Central Electricity Genei 
Board has at least 12,000 
of .new construction b> 
schedule, much of it three 
and some six or seven 
late. Productivity at - f 
station sites in Britain vari 
a factor of three, from 10 
hours per kilowatt at 
Scottish sites to over 30 
hours per kilowatt at 
sites in England. At leas 
the more intractable regi- 
which at present in 
Merseyside and the Soutt 
— the prospect of assem 
power stations from 
made modules is one 
UJv. electricity supply ind 
can scarcely ignore. 


Cubans stop 
the traffic 

When Luis Lamas de Oliveira 
arrived yesterday afternoon in 
John Street, near Gray’s Inn, 
London, he was greeted like a 
visitor from ’another planet. 
Oliveira is the general manager 
of the Benguela Railway, that 
time-honoured and now rather 
battered asset of Tanganyika 
Concessions. Until the Angolan 
war. the line had a revenue of 
more than £20m. a year, largely 
from traffic carried through 
Lobito Bay to Zambia and Zaire. 

To-day a strong contingent of 
Cubans controls the line where 
it crosses into Zaire at a wild 
spot called Dilolo. “We do not 
even know if the border bridge 
is up or down," says Rory 
McNeil, secretary of the London 
committee of the railway. “None 
of our staff is allowed up there.” 
McNeil seemed vague when 1 
asked him about the railway’s 
current level of receipts — 
scarcely surprising, since no 
money is coming out and com- 
munications are uncertain. But 
spares for the rolling stock and 
locomotives are still being sent 
from Britain. 

The last annual report of 
Tanks, which owns 90 per cent, 
of the railway (the Angolan 
government has the remainder) 
jpaid warm tribute to Oliveira. 

It said that he and his staff 
were working in “most difficult 
circumstances.” which could be 
viewed as an understatement 
Life was made no easier when 
an abortive invasion of Zaire was 
mounted along the railway route 
from Angola. Oliveira speaks 
only Portuguese and Is on Ms 
first visit to London. Yesterday 
he was so busy giving tbe Tasks 
directors in John Street the 
latest news from Lobito that 
there was no chance of inter- 
viewing him. When I asked 
McNeil about the prospects of 
reopening the line right into 
Zambia he replied: “ I'm not all 
that optimistic.” 




“Do you think they know 
something we don’t know? ” 

Party picture 

Vanessa Redgrave was the 
centre of more than one uproar 
on the night she received her 
Oscar. Resigned to being stood 
up by the relentless amazon of 
the Workers Revolutionary 
Party, due to her commitments 
in California, I none the less 
made my way to the National 
Film Theatre. Her 157-minute 
saga. The Palestinian; was show- 
ing, tbe product of more than 44 
.hours shooting by Redgrave and 
friends in the Lebanon. 

Even before the film began, 
WRP central committee member 
Roy Battersby was caught up 
in a noisy barrage of heckling 
from Israeli sympathisers in the 
auditorium: he even threatened 
one with a suit for slander. The 
mood for the WRP faithful was 
set by a centre spread on the 
PLO in the party’s daily. News 
fine, headlined. "Faring up to 
the enemy firmly.” 

Battersby explained that 
Vanessa had been the subject 
of a witch-hunt by the London 
newspapers. But few of the noisy 
questions put to him related to 

her film — though why it was so 
boring, was one. Even . then, 
Battersby declared that the only 
people he bad met who disliked 
it were Zionists and fascists, 
although he did concede that 
there might be others. 

Comic tips 

-If Baroness Seear has her way 
(and she seems set fair to do 
so), employers in Britain will 
be hearing a great deal more 
about Clause 1UB of the Sex 
Discrimination Act “The clause 
is dynamite,’’ she says, 
“although few people seem to 
realise it.” Lady Seear yester- 
day launched a picture-strip 
book to tell women about the 
rights they have under the new 
legislation. Produced with funds 
given by the Equal Opportuni- 
ties Commission, the booklet 
follows the. ad ventures -of a fic- 
tional heroine, whose husband 
has left her and who goes back 
to work. 

Lady Seear is chairman of 
Action Opportunities, an organi- 
sation set up by a somewhat 
disparate quartet — Women 
Pilots, the Women’s Gas Federa- 
tion, the Women's Liberal 
Federation and the Fawcett 
.Society — to advance the status 
of the traditionally gentle sex. 
The heroine of the booklet 
(which has a touch of “True 
Romances” and a slightly hee- 
taring undertone), gives all- 
comers a tough time. Her 
employer looks suitably chas- 
tened when he finds he has to 
give her two years’ back pay 
for equal work. 

One of the main outlets for 
the book, Lady Seear told me, 
will be through the TUC. I 
asked about the Tory ladies. 
“ They were not hostile at all.” 
she replied. Lady Seear. who 
teaches at tbe London School of 
Economics, says that Action 
Opportunities, a ginger group, 
was launched with £1.500 from 
the EEC Social Fund. It does 
not mean to be permanent, but 

Lady Seear sees its most vital 
function as driving home the 
significance of Clause 111B — 
dealing with indirect discrimi- 
nation at work. “ We surveyed 
25 organisations and they just 
did not realise it applied to 
them,” she says. 

Men’s lib. 

The laws to end discrimina- 
tion against women job-hunters 
are not always ineffectual, how- 
ever. They can even work to the 
benefit of men, as Sealink's ex- 
periences in Scotland prove. 
Last year, newspapers in Nor- 
thern Ireland. Scotland and nor- 
thern England were adorned 
with advertisements for “Prin- 
cesses,” as the girl couriers on 
the Laru e-Stranraer ships are 
called (it is known as the Prin- 
cess Line). Result: Seal ink found 
itself in hot water wife the 
Equal Opportunities Board in 

So this year, the advertise- 
ments were more adroitly 
worded. They announced vacan- 
cies for Princess Couriers. Re- 
suit: no complaints from the 
Equal Opportunities Board — 
and six male applicants. They 
are all Irish. I asked yesterday 
if there was any reason why the 
couriers should not be men. Tbe 
reply on tbe telephone from 
Sealink’s Glasgow office was 
brief and gritty: “None.”. 

Watch your step 

As a colleague was going into 
a Lambeth shop last Tuesday be 
saw a “Beware Of .Tbe- Dog” 
soign on the door, but tbe only 
animal he could see inside was 
a chihuahua puppy. “Is that 
what I'm supposed' to beware 
of?” be asked the proprietor. 
“ That’s right” came the reply. 
“Before I put tbe notice up 
people kept treading on him.” 

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Because of its dominance, the problems of the U.S. economy 
tend to become those of the world. They are numerous, but despite this 
many companies of international standing in Europe and Japan thought it worthwhile 
to establish American offshoots to take advantage of the giant U.S. market. 


^ses partimlariy 

!d:r*d-bei types rsngBy Stewart Fleming 

3 ^Wcid York Correspondent 

° -ffi?3rca canK • 

^3*4-3* S? pts RUN-UP to the 1980 Pres- 
Kendal ■ election may seem a 
?C~ .^rt-wirfung way off, .but as President 
and his political aides 
• d ^ 1 “! ' c ^•■ontenqjlate the outlook for the 

economy and financial mar- 
^ *ey would be hard-pressed 

.•-*-r--eau 0 conclude that time is on their 
c *“ :. or ^dde for dealing with the 
’ ’ Jieara1 “ iconomic problems -which could 
^ 'Effect the voting. ■ . 

j ‘^* 7 ° '■'■ s Many economists outside the 

‘ ) . Vdministratioh are already pre^ 

,;r 3 r;- 2 i D * 'licting that by early 1979 the 
> cants b? ’^fcohoiny will be heading -for a J 
r.‘. hreik-og tie of ^agm^canay- : sJbwerl 

f - M ' er ?’2C!C3CJinail- ro ^jj l _ . than the .annual 

5 per • cent, rise in real 
terms., which" has been 
underway in the three years 
since the 1974/75 recession. The 
gloomier forecast is that the 
economy will not only he’ slow- 
ing down but will he heading 
for recession ?t a time of rising 
inflation which wiUonly make 
the recessionworse. 

Fears that events will move 
in this direction have been 
heightened by the persistent 
weakness of the dollar, which 
poses a threat not just for the 
U.SMmt for the world economy 
and which is causing mounting 
anxiety in financial markets. 
Observers are ’ increasingly 
coming to the conclusion that 
the actions the Administration 
may need to take to help the 
dollar in the short .term will 
rebound, adversely . ' on the 
domestic economy. . 

.-.Thus the Administration 
seems to face some difficult 
economic policy decisions' if it 
is to -tty to-head off -the -threats 
-of -inflation and recession and 
contain the ’■< dollar : problem 
during this year's mid-term Con- 
gressional elections, mid the 
run up to the Presidential elec- 
tion,.- -V' ’ • - • /• \. ■ 

American business ifc w^tch- 
ing anxiously to see wb£the£.the 
trick turned. There^ar®, 
-many who say that' the^ political 
commitment . to . keeping h:J 

economy moving into 1980 will 
prove self-defeating and merely 
spawn the recession the 
politicians are aiming to avoid. 

Outside business and political 
circles there does not seem to 
be much public awareness of 
the dangers ahead-^apart from 
a .simmering anxiety about 
inflation, spurred for the most 
part by sharp rises in food 
prices in recent months. This 
is not really surprising since 
consumers have been enjoying 
three years of sustained econo- 
mic growth at a rate well above 
recent historical levels and seem 
to be destined to enjoy a fourth 
consecutive year of growing 
prosperity in 1978 in ■ spite of 
a poor first quarter. 

Since President Carter took 
office just over a ' year • ago, 
unemployment has declined 
from over 7 per cent to under 
6 per cent. At the same time 
more Americans than ever 
before are working as com- 
merce and industry have created 
millions of new jobs, success- 
fully - absorbing new workers, 
particularly women, into the 
labour force. (Urban un- 
employment, with rates among 
black teenagers running at 30- 
40 per cent, remains intract- 
able. however.) 

Rising incomes and consumer 
spending have powered the 
economy upwards and,: for all 
The concern about car sales in 
1978, conclusive evidence of a 

weakening of -demand has yet 
to appear. 

In the financial markets the 
Dow Jones Industrial Average 
has plunged 24 per cent since 
January, 1977, and short-term 
interest rates have risen more 
than 2 percentage points, taking 
commercial bank prime rates up 
to 8 per cent. 

The markets — but not all the 
brokerage houses — have so far 
taken these adjustments calmly. 
Trading in the long-term corpo- 
rate and Treasury bond markets 
has been thin but creditworthy 
corporations have had no diffi- 
culty in raising debt finance for 
20 or 30 years at interest rates 
often no more than 40-50 basis 
points higher than , a year ago. 


Commercial bank credit too 
has been readily available. It is 
only in the past few weeks that 
the big New York City banks 
have been seeing real signs of 
an upturn in corporate borrow- 
ing and even yet it is too early 
to be sure the increase will be 
sustained — although the general 
view now is that it will. Indeed, 
some economists have expressed 
real concern about a tightening 
of credit later this year. 

. There has not been much 
action in the equity finance 
market and there is growing 
unease about the depression In 
share prices on the 'grounds 

that this impedes the flotation 
of new companies. But if the 
merger boom of the past ■ two 
years is anything to go by, the 
business executive is less 
nervous about the long-term 
outlook for the economy than 
be is about the immediate 
prospects. The continued growth 
of foreign direct investment 
from abroad suggests that some 
major overseas corporations 
seem to feel that in the long 
run a stake in the U.S. economy 
will be a good bet too. 

These ** fundamental " 

strengths have provided 
evidence for the Carter Admini- 
stration to argue that the 
foreign exchange markets are 
undervaluing the dollar. But 
there is another side to the 

The most pressing concern is 
inflation which is now, it seems, 
accelerating and is higher than 
in some other industrialised 
nations. West Germany a ad 
Japan in particular. The 
evidence is not limited to the 
recent surge in food prices, in- 
creasing social security pay- 
ments. tile rise in the minimum 
wage or the prospective rise in 
energy costs as part of an energy 
policy or simply to help the 

The inflationary pressure can 
be detected too in what are, 
given recent productivity trends, 
inflationary wage settlements. 
Evidence of declining produc- 

tivity in the U.S. economy in the 
1970s at a time of high wage 
settlements with built-in cost of 
living adjustments no doubt in 
pan reflects the shift to a more 
service-orientated economy. But 
it is probably another facet too 
of the sluggish rate of new 
capital investment in productive 
equipment, an indicator which 
is worrying economists and lead- 
ing to questioning of a whole 
range of government policies 
from taxation to environmental 

There is fragmentary evidence 
that at least among some 
Americans an inflationary 
psychology is beginning to take 
root. The continued heavy 
demand for housing and rising 
house prices, fuelled sometimes 
the purchase of investment pro- 
perties are one indicator. 

The Carter Administration is 
correctly bringing the inflation 
issue to the front of the 
economic policy debate but in 
doing so it runs the risk that if 
it fails to find an effective anti- 
inflationary policy the debate 
will provoke price and wage 
demands designed to protect 
companies and workers from 

There is a growing recogni- 
tion. too, that the decline in the 
dollar may have a more severe 
inflationary impact than the 
significance of imports in the 
economy might suggest There 
is no doubt that U.S. car prices. 

for example, especially in - the 
sub-compact sector, have risen 
more sharply because of price 
increases on leading imported 
makes prompted by the dollar's 


Domestically as well as inter- 
nationally the dollar is thus 
becoming a more and more 
pressing problem and heighten- 
ing the nervousness of the 
financial markets. There is 
scepticism about whether the 
most widely recommended 
" solution,” an energy policy 
involving higher oil prices to 
curb imports, will have the 
effect needed quickly enough, 
even though it would 
undoubtedly provide much- 
needed reassurance about the 
President's own standing. 

The sceptics suggest that 
curbing oil imports is only part 
of a more complex problem. On 
the trade account it is suggested 
the nation’s poor export per- 
formance is as worrying as its 
gluttonous propensity to import 
crude oil. 

Some suggest that major 
American corporations, with 
some notable exceptions, are 
simply not geared to take 
advantage of the declining 
dollar and increase their export 
earnings, and that in a world 
of increasing international 
trade this is a structural weak- 

ness in the economy. It could 
also increase domestic pressures 
for trade protection. 

Moving away from the trade 
account the talk turns to the 
vulnerability of the world 
economy, dependent as it is on 
the dollar as a reserve asset and 
a prime trading currency, and 
the repurcussions of this on 
domestic policy. 

It is not really surprising, 
given the disquiet on these 
issues, that the underlying 
strength of the U.S. economy is 
not providing the foundations 
for economic progress which 
Administration officials feel it 

In part, however, this is a 
reflection of a growing unease 
with the Carter Administra- 
tion's economic management. 
The administration has stuck to 
policies of world economic 
growth and free trade which if 
they had been abandoned could 
have caused even greater 
anxiety. But as economists 
have watched the shifts and 
turns in policy on such issues as 
taxation, or the significance of 
the dollar’s performance, their 
reservations about the Adminis- 
tration’s performance have 
deepened. Having given the 
Administration the benefit of 
tbe doubt in its first months of 
office they now wonder whether 
it has the expertise to give the 
consistent leadership which 
they feel is lacking. 



■■dio:* 0 

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American Fund 

The United States of America is one of the world’s 
strongest economies* Its streng th is -Based on the 
country’s abundant natural resources and xts'com- 
unitment to free enterprise and the creation of profits 
and prosperity. 

Jjl addition the US dollar is traditionally a stable 
currency and inflation, has overall Been kept lower 

than in other Western nations. 

Piccadilly American Fund aims to achieve maxi- 
mum capital growth by investing in the sh ar e s of 
industrial and commercial, co mp ani es . in the USA 
and s when appropriate, in short dated- government 

and corporate bands. 

The United States has Been affected less than most 
other countries by the current world recession and, 
despite a number of areas of short temi concern, the 
economy is fundamentally sound. 

Lack of investor confidence in the strength of the 
economy, and unsettled conditions in the securities 
industry, have held back share prices in recent 
months. However, these fears are related to essen- 
tially short considerations and we feel that the 

market is extremely attractive on a 3 year 

view. . - 

US companies axe raising their dividends, high 
corporate liquidity has produced, act i v i ty among 
second -line . stocks in anticipation! oF takeovers and 
{here is evidence that significant institutional funds 
axe now awaiting investment. Price/eamh^s ratios 
are at a historically low level. 

Piccadilly American -Fund provides an opportunity 
to invest in the USstockmarket at what could prove 
to be the low point of the current cycle andinvestors 
would be wise to consider investing before the 
market rises. 

The price of units and the income from th em m ay go 
down as^wefljLS.up.- . 

»*rl untl not bo neknanrigdaed bnt VQq wffl racctro toot 

cextificatB for the -p-ih— ot nm» allocated within four vroeks ct owe receipt 
of year spp&atian. Units win be iasoedu (heater price ruling et tho close of 
3wsbw«* on (he day preceding receipt of your application. For mfornttfew t 

l w npowiflnlTitf l f pIp-ot of EiiMiMi cm 2flih Mffrrh ltfifll 

.was 2&£p. Tbe estimated gross Bmnal yield, at that price was 2J3%. 

Tnrnmn TtfrfriTinfftm Thr fncnmfl. not of tax at (ie basic rats, is payable 
aataally oa2«b July. Tha Cm distribution in respect ol this application wall bo 
made an 28th. July 1878. 

The Charges. A cn»«lJy daw* of 5% minclndoa in the offer price to cover 
iihM eapeaaoe including cananiaanarfl $56 to recognised pialismfcsuls<ial&» 
ex*. An Brumal charge \% (+VATT of tfw wine ot the Find is deducted ta 
cover OTzmgexneni and atinnuraim tion expanses. 

Capital Gefas Taxi It yon are a bwric ta l e tex pay e r yon win generally Sneer no 
. ttt legality whan you sell your nuns. K you.are paying a higher rate of ta* at 
tfa* time of oelbag yen will be liable to Capital Cains to- For (he fop rate tax* 
payer there is a msariantm tabflfry of only 13% as against the nnrmal rate of 
30%. (Correct at time of going to pren.) 

VaJuatton*. The Fond is raised daily mtdfba current price and yield, is pub- 
baited daily hr (be national press. 

Bbaagoss. Piccadilly Unit Trust Management Tantbed (Mifflibrnw of (he Unit 
, Trust Afisodation). 

■' Directors. Alan F. Judd AGA, Albert H. Fox PCA, Kdccd <1, Ludcrs, Neil E. 
Sees, Dxfid P. & Serogigie. 

. ' Sfcastae. Bank of Scotland, The Mound, Edinburgh EB1 1VZ. 

How to Sell Units. Yon may nrtliaa pan or allot your investment at anytime 
by atoning the be* of (ho certificate indicating the number of esdta yon wish to 
-ailSid it to ihn Manag ua . You will norfoanr zeceivft ynnr cheque 

within K days. 

Share Exchange Flea. We consider that it is now the rtghl time tor holders of 
ynr u ako ady&ntage of (ho Btrcadilly Shero Exchange (aril Kies ta - 

' Tmrrhiisn units in this find .wiflion. mousing the n o rmal soiling costs. IT you 
feih to invert by way of Bfamfo exchange, pleasoaBatat a Jiaioi the mvearmente 
wtdeh you wish to exchange with Iho coupon, or affe for etsr brochure. . 

^^^ l \! ^? lfaiS!tMSgS ! i^b^onEC2MSUlL CBofliafaged Office). 
m Xnli0J-63& MW EegiateradiaEBflland So. 258238 . ™ 

I I/Wo wish » iurcst E (minimum MO) fa flu* FfceaJBy I 

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t K^^T.Tw rwtTmaT Management Ltd. “ 

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^n dth- T ini/ww are not mnririna the above m en t i one d units as (he n o m i n e o M ■ 
* ofa»TP«* wl f*)rB»idem outside those Territories. . . ■ 

SapnliaaiB cannot malm (he d ed ar at ina, it ahwld be lag tasignad, and fee ■ 

I i^SgSSrsWd ba lodged throagh aa aalborfoad. dapCailaiy (bank, dock- ■ 
Swair or solicitor in the Dated ScgdomJ. || 

BI i im — n ... — I , P H C . Wt . . . . .| - IWI H a 

should be lod 
ea cnHrlto r in (ha 

Eiguatere. - 

Sesame (Mr. Mm . SSs^- 
Choadan a«maCs>-~~.— 
Address - 



Financial Times Wednesday April S 19 

Growth fails to boost confidence 

si'-" . - 

IN THE first quarter of this 
year, the U.S. became the 
world’s first S2,000bn. economy. 
There has been no rejoicing at 
the achievement of such a 
landmark, or any celebration 
at the fact that the country 
this month entered its fourth 
consecutive year of sustained 
economic growth. 

One of President Carter’s 
misfortunes was to have taken 
the helm at a time when, peer- 
ing backwards in order to fore- 
cast the future, many econo- 
mists and businessmen were 
expecting signs of a recession. 
While the President's policies 
in bis first year of office did 
little to dispel this pessimism, 
the actual performance of the 
economy gave better grounds 
for confidence. 

Yet confidence has been in 
short supply not least because 
of the shocks delivered by the 
1974-75 recession. These two 
years yielded declines in the 
real Gross National Product for 
the first time since 194647. 
During the whole of the 1960s, 
moreover, there had been no 
single year in which GNP had 
fallen. Thus American business 
had come to believe in steadily 
increasing prosperity. But the 
1970s have produced a world 
of unexpected and dramatic 


Three years of economic 
growth since 1975. at an his- 
torically rapid pace have not 
been sufficient to repair confi- 
dence shattered by the oil em- 
bargo and the shift of financial 
resources to the Middle East 
Real growth there has been 
since 1975, but it has been 
accompanied by constant re- 
minders that the U.S. economy 
is far more vulnerable to the 
twists and turns of the inter- 
national economy. American 
business, which has helped to 
create the world’s present 
economic interdependence, has 
been made painfully aware that 
it can no longer ride above a 
storm in world markets. 

Domestically, the vulner- 
ability of the U.S. has been 
demonstrated by increasingly 
volatile economic development 
and abroad by the fragility of 
the dollar. Annual rates of GNP 

growth in real terms since- 1970 
have ranged from minus 1.4 per 
cent in 1974 to plus six per 
cent in 1976. Within a single 
year, economic progress has 
been more of a switchback ride 
than a steady progression. In 
the fourth quarter of 1976, for 
example, GNP growth was 1.2 
per cent, in real terms and the 
following quarter it leaped to 
7.5 per cent Inflation rates have 
been no more steady. 

In the placid post-war period 
up to 1970. American business 
could plan on the basis of price 
stability as well as stable growth 
for inflation lodged satisfac- 
torily at- around 2 per. cent. 

During the last seven harsh 
years, however, prices have 
never increased at a rate below 
4 per cent They ran close to 
10 per cent for two consecutive 
years, and are currently locked 
into a 5 to 6 per cent rate of 
increase and may well be rising 
even faster. 

This climate has made the job 
of running a business in the U.S. 
immensely more complicated for. 
executives who learned their 
skills in the calmer 1950s and 
1960s. Managing stocks, control- 
ling costs, planning manpower 
requirements and predicting 
marhet conditions have all 
become much more a matter of 

Uncertainties have been com- 
pounded by a lack of consensus 
on what the nation's economic 
priorities should be. During the 
past year the disagreement be- 
tween the administration and 
the financial community, con- 
veniently labelled Wall Street, 
has if anything widened, with 
the Federal Reserve sitting un J 
easily in the middle trying to 
pursue a money supply policy 
which has satisfied neither. 

For -at least a year. Wall 
Street has been preoccupied 
with the rate of U.S. inflation 
and the country's failure to 
bring it down more in line with 
the prevailing rates in West 
Germany and Japan. It is argued 
that a 6 per cent rate of price 
inflation has fast become part 
of the U.S. economic structure 
and that as a result major perils 
lie in wait for the economy. 

Tbese anxieties were some- 
what muted in the second half 
of 1977 when the consumer price 
index slowed dpwn to an annual 
rate of advance of a little over 

4 per cent — but then the re- 
newed . instability of the dollar. 
President Garter’s proposals f Or 
a budget deficit of around $60bn. 
for 1978-79. followed quick 
signs of a double-digit annual 
rate of inflation in the January 
economic indicators, have added 
to the clamour for the Adminis- 
tration to identify inflation as 
the Number One public enemy. 

By late March there were 
signs that President Carter was 
ready to do so, although the Ad- 
ministration's counsels were ap- 
parently divided as to -what the 
precise nature of .the' attack 
should be. Seen from Washing- 
ton; the economy- has been com- 
ing along nicety with a 4.9 per 
cent, real growth rate in 19/ r, 
and a prospect of between 4 and 
44 per cent in 1978. 

The Administration denies 

that/ it . .has" ever downgraded 
reducing inflation as an econ- 
omic-, priority, but- ..has argued 
that the attack on prices should 
not be at the expense of jobs or 
risk jeopardising achievable 
rates of economic' growth. Hav- 
ing -aeen' unemployment fall. 
from,7.5.;to JB.1 per cent, and 
the., creation.- of Sm; new jobs- 
in his first year of office. Presi- 
dent Carter ’does, however, seem 
ready to consider stiffer 
measures. . 

' Nevertheless, the basic' out- 
look for the economy remains 
promising.; Despite another 
harsh winter and a miner's' 
strike, the- economy is thought 
likely- to : have managed a 1-2 
per cent, gain in the first 
quarter of 1978, and to be in 
good shape to make the recovery 
needed to sustain a 444 per 

cent, annual/growth rate;- -• ^KSierto seemed ,-«cess£veiy\.#ieFed, Mr! WHllam IGReir.wak and pc&fed to a 9 6 J 
- several encpurag-i-optimistic. .The fox^ih^ .spimding veryjHke.-hls rather than 

ing signs are a 1 10 per cent iAdaniiustratido. Dr.’- Arthta Barira,~--fcn.'cenit. l 'r aid an 85 no 

increase in manufacturers’ tain the economic outlook and' warning that in .the absence of advance in M2 and noi 
order books since last July, an at the same time chip away at a convincing approach from the cent as previously T 
per cent, annual Increase in the inflation rate- Administration, the Fed would Declines in the Februar 

the production of business Many economists believe it is have to pitch the money supply supply were also trimm! 
equipment, a projected 7- or 8 impossible to do both, and that into the front line against infla- As' a result msnv 
ner cent, increase: in 1 business n« * . r 'r Uit ’ ™any ana 

per : cent increase: ro 1 business on present trends the inflation tion. When he spoke, however, convinced that a 
capital sp e nd in g' and enough rate will be 7 per cent, and Mr. Hiller would have known interest rates ha,*? 
spare capacity in manufacturine rising tw tv»« enrt «f 1077 u. 

spare rapacity in manufacturing rising by the end of the year, that in 1977 his predecessor’s stable sinceTariv S 

mdustiy to allay any* anxieties Wall Street’s economists are regime had been more accom- be moving aowaiSS 

about bottlenecks or overheat- arguing that it would be far modating of money supply towards the second hat 

ing. While housing starts m wiser and -probably more eSec-, growth than- liad./ appeared reai*>W£et&er this w! 

January and February were. live. for,, an jaiti-infl^onaiy ;the tiine. ‘ dragSJ-ffi^JS 

down about 20 per cent on policy to be based-On tightening/-. - Towards thfe. end of March, Ae. .r emains seeiLh 

December 1977, total' ^ construe- money ' supply. v'Tedadhg “the /Fed produced revised figures ^re ground&fitt' fearin? 
tzon permits were well. tip. '/. impact on employers’ payroUs ^which showed that in 1977 .the iiopiv&rd momentum in 
■ The arriyal of spring weather -of scheduled .increases^ sorial ^owth in Ml_and M2 had b^«i -economy tiiay well ha- 
promised to revive • consumer- security -taxes . and the nflUnaum/ 7.ffand 9.8 per cent, respectively -Toct next 


spending and a surge in car wage, and cutting the projected and not 7.4 and 9.6 per cent as 
sales in mid-March started to Federal deficit for 1978-79. earlier figures had indicated, 
give credence to the manu- Within days of assuming his The revisions for January 1978 
facturers’ predictions which had responsibilities as of bad been even more substantial 

Stewart FI 
and John 

Competition spreads on Wall St. 

WHILE THE number of pubHc 
investors in ,tbe U.S. stock 
market has fallen from 30m. to 
around* 25m. so far this decade, 
America’s preoccupation with 
what the stock market is doing 
is still remarkable. The most 
parochial of radio stations think 
it worthwhile to inform its 
•listeners of the-closing average 
of the Dow Jones .industrial 
index, the volume for each 
day’s trading and the most 
.active shares. 

The 19 per cent, decline in 
the industrial average over the 
past 12 months has almost cer- 
tainly contributed to a simul- 
taneous fall in . President 
Carter’s popularity ratings, for 
while Wall Street may be debat- 
ing on. a mare abstract level 
what the market is saying to 
most Americans it is strongly 
implying that the President is 
none too good for business. 

This is not a judgment with 
which most Wall Street analysts, 
brokers and investment bankers 
would disagree. High priests of 
finance renowned for their 
ability to digest a balance sheet 
grow purple in complexion when 
discussing the President’s 

economic policies^' Dire wafih 
tags, of .the imminence of 
Somlism are by no means un- 
common-: in -tiie conference 
rooms of Wall Street By and 
large this is more Wall Street's 
problem than it is America’s. 

The dual phenomena of a 
weak dollar and falls in both 
the equity and -fixed interest 
markets have occurred at a time 
when the securities industry has 
been increasingly preoccupied 
with its own problems and when 
some of its members have been 
in poor shape to cope with such 
external difficulties. As a result 
major brokers and investment 
houses have been as “ risk 
averse ** as the institutional 
fund managers whose business 
is such a vital contributor to 
the income of Wall Street 

Institutional trading is one of 
the industry’s key problems, 
along with governmental pres- 
sure to create a- national market 
system ’ and the difficulties of 
acquiring sufficient capital to 
guarantee a future when the 
securities business will be dom- 
inated by fewer bnt larger com- 

The abolition of fixed commis- 

sion charges on institutional ac- others’- arms last year,, seeking institutional fonsmess~~streiigth- 
counts was mandated by the the: protective .security -of ,mar- ening the capital base is: .view 
Securities and Exchange - - Com-, riage. From. ,3Cub» Loeb to of: the prospect -of the removal- 

mission (SEC) from May 1 1975 Lehman. Brothers, irpm Lqefr of off-the-floqr -trading • resfric- 
and its impact was undoubtedly Rhoades to Hombiower and tions in equities which is sym- 
shi elded by the stock market Weeks and from Dean Witter to bolised by the New York Stock 
recovery of 1975-76. Until last Reynolds Securities, the consoli- Exchange’s rule 390. 
year many brokerage houses had dation among the top Anns Although SEC postponed its 
been able to compete in the seemed unstoppable. proposal to remove -390 from 

discounting war sparked off -by Famous names are 'constantly January 1, 1978, its disappear- 
negotiated rates but the fall in -being Ifnked by the'WaH- Street ahee seems 'inevitable in -view 
the market coupled with the rumour machine but most of the SEC% mandate from 
increasing reluctance of insti- observers are -confident that the Congress to widen competition 
tutions to maintain their equity top 25 firms as ranked by capi- in equities through the creation 
portfolios produced critical tal could well be the top 20 by of a national market, 
revenue problems for some com- the time this year is out . The proposal to abandon 390 



panies. This is ircmic since the- SEC’S was an expression of the SEC's 

original intent in sacrificing impatience, under the - lash of 
Tlrnnnarl fixed commissions was to Congress, with tile securities 

Ul UpjjeU increase competition withih the industry’s own failure to agree 

....... . . securities industry. Destructive within itself on _ a framework 

Negotiated rates are reckoned comp^^n may not have been for a national market and on 
to have cost the industry dose forsGea hoWe ver. and the di* the necessary steps for . its 
to *lbn. revenue, with the result on ^ oId ^ rates achievement. . 

that more tean one-third of the np t0 ^ pCT rent has proved ^ ^ '. 

purely institutional brokerage an which ^ done Off ItlQ 

bouses had ceased trading by nobody m g0Q d-except per- V 1UU S 
the end of last year. In 1976 hapg j he institutions. ' Earlier This is a saga which is still 

some 63 per cent, of the Indus- j^jg year a ser jous move did get -unfolding and a confrontation 

try s total income came from way to try and claw back between SEC and the industry, 

commission dimrges but by last 50jne of the lost revenues, led, by the New York Stock 
year this- had fallen to 44 per Donaldson, Lufkin end Jenretffe. Eichsmge. may well be iritiUT 
cent In tiie case of Merrill an d others announced discount offing. . The NYSE has devised 
£ erce tenner 411(1 limits beyond which tiiey would mid is about to launch a new 
Smith, the world s largest not g0 and Goldman Sachs, one intermarket trading system, 
security firm, commissions have of Wall Street’s leading block (ITS) which will link it with the 
dropped as a proportion of re- traders, offered , some support American, Philadelphia, Boston 

As NewAork’s oldest bank, 
we financed the trade 
of our young nation. 

£r « m per 9 cnt - 111 for this stiffened resistance by and Pacific stock exchanges. ; The 
19(3 fo 3—5 per cent, in 1977. declaring that it too would be Mid-West - Stock Exchange in 

Against, this background the more discriminating in its Chicago may also join before 
industry has been scrambling to charges to institutions. the year is out The scheme was 

widen its revenue base through Some brokerage houses have devised by. the NYSE as a 
diversification into other finan- had increasing difficulty' in find- potential vehicle for creating the 
cial and non-financial fields — ing the capital needed to fund national market so earnestly 
and ultimately through mergers, the principal transactions desired by Congress. Computer 
Some of the most famous names needed for positioning, block links between .■ the -markets 
in Wall Street fell into each trading and the execution of should enable stockholders and 

brokers -to determine fl 
price available for FJL jfSm 
stocks/ /“ 

■ ' The SEC has so far r 
enigmatic about whf 
regards the ITS as a 
basis for a national ma 
has set a deadline of St 

30 for the mdustry 

certain props fpr-tihsi^ 

Specifically ■ the ’ ' cbi 
wants a linking system 
place, by September 3(] 
brokers and dealers c 
orders for particolar Si . . . 

The ITS plan has recer "J*. 
lodged with - the S’ ” 
approval, so it -shoo..'" 

become apparent whett. 
into the commission.^ $ 
things'. r • 

In addition to * 

however, the SEC yn 1 

posals for the creation fjl ju» cil • f* i. t ^ i • * 1 
tral limit order file i 
national protection f 
orders. Such a file w C"~ - 

mately replace the 

who currently uses his t- - - 
order book to . mah_ . . 
orderly market in thef’ 
for- which be'is.respor - • -• 

central limit order 
strike at the very Be# " . 

NYSE's dominance, o , 
trading and the exl - ' 
likely to skJrt tbe isK* 
detailed response to: fl- - 
request' fpr a set of- pi-- ■ 

With industrials lodfi ~ 
in the 750-800 index if • • . 
competition v/ifliin 
securities industry- nn^ U . . 
a steadfly , expanding ! 
immediate futore .looks 
turbulent as the recent . 

John ~ ~ 

Inflationary omens fo 

Now almost 2CX) years later, 
we are financiers to 
the wide world. 

the bond markets 

Our international involvement began early. 
Soon after our nation’s indepen- a 
dence. The Bank of New York was 
founded to encourage the growth of | 
America’s fledgling commodities trade. I 

That was only | 

the beginning. n| 

Through the ensuing years, we .*s 

have grown from strengtii to - L 

strength. Today, we have an im- 
portant global reputation for .:J| 'jM 

both the quality and - scope of our ^ 

services to our corporate 

We can boast a uniquely com- 
patible relationship with scores of 
correspondent banks, both at 
home and overseas. 

And we serve the diverse 
financial - needs of American 
corporate clients and their over-, 
seas subsidiaries, as well as- local 
businesses all over the world. 

London Pride. ' 

Our London Branch at 

f ■4. v * > < ” X ’ 

Leadenhall Street provides the full range of com- 

i mercial banking services. 

It is actively involved in corpo- 
rate lending, export-import 
financing, Euro-currency parti- 
cipations, leasing, cash man- 
( . agement, corporate trust and 
f investment management 


‘Aj London is complemented 

fg BO vJ:' \ by thelniemational Divi- 

v?' - Nk 1 sion in New York . the Bank’s 

149 branch offices throughout 
iSSvP fpiK llie entire State of N ew York 
and a complete branch in 
i.' Singapore. 

Merely the Very Best. 

-1> *• -X. V 

The Ban k of New ^brk has 
never sought to become the Very 
Biggest. Our aim is merely to 
be die Veiy Best- 

In fact, we take pride in our 
rank as America’s twentieth larg- 
est bank. Not its Mass Money - 
Mover. But its Finest Financier. 

r ■ 

There is onlyone bank this dd. And this new 


Member- FD 1C 


London Office: 147 Leadenhall Street, Loudon EC3V 4PN 
Main Office: 48 Wall Street, New York. N. Y. 10015 
Incorporated with limited liability in die Slate of New York, U.S.A. 

AFTER TWO years of steadily 
rising prices, expanding new 
issue volume and healthy profits 
for investors and trading depart, 
ments alike, the New York bond 
markets became increasingly 
nervous during 1977 and early 

In retrospect the, break in 
bond prices which ushered in 
1977 and left many investors to 
absorb heavy losses proved to 
be the bottom of the downward 
movement of both Tong and 
short-term interest rates follow- 
ing the credit squeeze of 1974. 
Federal funds then traded at a 
peak of 13.75 per cent, and 
yields on new issues of AA-rated 
utilities moved up to 10.6 per 
cent. - 

Since hitting a low of 4.53 
per cent at the beginning of 
last year the Federal funds 
weekly average rate has risen 
to a round 6.75 per cent, while 
commercial bank prime rates 
have risen from 6 per cent, to 
8 per cent. Money market rates 
Tike these have risen more 
sharply than long-term bond 
rates, however. Thus yields on 
AA-rated securities are up from 
7.8 per cent, to around 8.8 per 
cent a few weeks ago over the 
same period. 

The impact of these changes 
on Investors has been charted 
by New York investment 
bankers Salomon Brothers in 
their 1977 annual review of the 
bond markets. This suggests' 
that daring 1975 and 1976 as 
interest rates generally declined 
and corporations raised record 
amounts in the bond market, 
investors in different segments 
of the fixed interest’sector were 
able to obtain total returns, 
including capital appreciation, 
of between 9 per cent and 30 
per cent 

But in 1977, say the invest- 
ment bankers, the total return 
on bonds (measured by price 
change plus interest as a per- 
centage of starting value) was 
“just moderately positive for 

most sectors of the market and 
negative for a few obligations.” 

They point out, for example, 
that the total return on long- 
term Treasury issues, which was 
15 per cent in 1976, was zero 
in 1977, while good quality 
long-term corporate bonds, 
which recorded a total return of 
18 per cent, in 1976, showed 
only 2 per cent, last year. 

Although investors in the 
bond markets last year did less 
well than in the previous two 
years borrowers continued to 
raise historically large amounts 
of new money. States and muni- 
cipalities raised a record S45bn. 
and during most of the year on. 
better and better terms, with 
interest rates in this sector 
moving against the general up- 
ward trend. Corporations 
borrowed S28bn., close to the 
1976 amount 

But savings flows were more 
than adequate, especially since 
the major institutions, pension 
funds and insurance com- 
panies withdrew again from 
investing in ordinary shares. 
The market might well have 
been under greater pressure 
had it not been for the willing- 
ness — if that is the right word 
— of' foreign investors, mainly 
central banks, to take up 
new issues of U.S. Treasury 
Securities. ... 

Bankers Trust, for example, 
has estimated that foreigners 
absorbed around '$321bn. of 
Treasury issues, dose to two- 
thirds of the marketable 
securities the government 
issued. While this foreign in- 
vestment may have helped to 
keep down interest -rates it 
reflected in the main foreign 
central bank support for the 

In retrospect the ability of 
the bond markets to absorb 
these heavy financing require- 
ments during most of 1977 is 

surprising given the uneasy 
economic and financial back- 

Much of last year was taken 
up with -a heated -debate on the 
course of monetary policy, and 
by October one of the most 
common complaints on : .Wall 
Street was that in spite of 
engineering sharp upward 
movements in short-term inters 
est rates the Fed has tost its 
ability, or its will, to control 
monetary growth. 

But while short-term interest 
rates moved up sharply 'the 
fears that the over-rapid expan- 
sion of money supply was only 
fuelling inflation this year and 
probably next were not wide- 
spread enough to unsettle the 
long-term bond markets 
severely until the later months. 
Then* increasingly and into 
1978, dealers and investors 
began to retreat to the sidelines, 
spreads widened and trading 
thinned. There was growing 
awareness that the economy .was 
after all growing more strongly 
than many supposed and .that 
inflation was showing signs, of 
gathering pace. ; ' ■ 

Thus as bond market investors 
entered 1978 they we re fac ed 
with a succession of disturbing 
omens.- . •- 

The continuing weakness of 
the dollar and the Carter Ad- 
ministration's decision to ■' try 
and shore it up In part through 
engineering an increase ixr 
short-term Interest rates dealt 
the Treasury sector in particular 
a blow. This was reinforced by 
the recognition that the Govern: 
ment budget deficit of about 
,$50bn. Jn 1977-78 was. on ;lbe 
increase and would be $0Obn. 
the next year. Analyst? pointed 
out that in .what would then 
be the fourth year of sustained 
economic growth since the last, 
recession the Government 
should be cutting down, debt 

not borrowing, more. 

To these concerns were added 

predictions that denial _ 
sores on the credit. 
could rise in 1978 tc* . _ 
levels, with corporate - 
mortgage market and o\. *• 
eminent putting heavy I 
pressures on the maxfce ' . - 
These predictions led 
spread expectations : th‘. , 

and shortterm interest ‘dSUjiu v 
to 200' basis points. J 

squeeze, some amdysts 1 • *• 

.was on the way whiri 

abort the economy’s - . ■ _. * 

growth. r " 


Others, however, q?es - ■ 
analysis, arguing.:®.' 
economy is . . already^ ; 
down and that hiflati 
stick around the. 6 - P 1 ' * 
level '' On this " bas«, - 
assumptions bf 4f to 5.S - 
economic growth this i J 
next and inflation riau. 
per. cent are. put ^i . * . 
economy may be heaae-.. 
“soft landing-" This wo? : 
■teat .interest rates 
dose to their cycbtai j. • : 

The . bond . markets .. 
poised between these t* ' 

..n. .nraKfAfr- l 

to current levels but wiflK 
-anticipating more; qj 
ward pressure. _ _. 

The uncertainty ^ ; , 
pounded by toe .’fggk - 
assessing whether ; : 

Administration’s emjgJ _ 
jnitment to a r • 

against inflation 
cosmetic and whethw 
pursued, # not . 

new chairman Of JJ* ^ * 

Reserve Board, *r- 

Miller, attack : the P , . 
which the AdininisWhw v 

seem to he handing W»- % 

art«rr\ l ■ 


Jc . • **I Ihl!. 

Stewart FI* X 



«• ■. ■ 

r ■ : * " - -?zi?r 
" , ■ • r*r ^ 
-: 5 

'• ••■'. •'O 




If you’re planning to enter die American 
market, you should know about the tax breaks and 
--r-u:.:. tax incentives New York State is offering to business. 

* j.- Before you consider any other state. . 

The best tax advantages in America. 

' 1 1. Wedorit tax a companyls personal property 
- -• ; W: such as new equipment or machinery Connecticut, 
New jersey-ana -44’ other states stfllao. ^ . 

; ; - r • 2. we give-ydii taxbreaks for renovating older 
c i premises. We 1 !! help pay your staff training expenses. 

3. Weonly tax midti-statefirms on al00% 
destination basis.This way, only receipts from sales 

V: J - s • within the state-are allocated for tax: Not tod many - • 
states are- prepared to go this-far f • 

• ^ New and expanding companies get an even 
‘ better deal. - • • * 

4. We give them- tax cuts on new buildings and 

5. We give them tax breaks for hiring more staff: 
6* ■ We give them tax write-offs on facilities used 

p for research and development, 
f A That’s not all’ . " j • 

Iv- 7. We’re also offering Pollution Control credits, 
low-cost long-term second mortgages, local property 
tax exemptions, and more- And although other states 
rp are offering some of these tax,advantages, only New 

; ^3 "fork State is offering all of them. 

8. Combinea,theycansaveacompanYlOO%of 
. : v> its corporate tax for up to 10 years. 

'C 9. And with all these breaks, it’s common for 
•' - i companies to recoup up to 50% of their original 
r ;:. i investment: 

. The advantage of 

America’s best business support system. 

■ "1 . A company can’ t survive on tax breaks alone. 

- . " You also need certain essential professions! ser- 

" r- '■ vices to operate profitably 

10 . In which case you can’t do better than in 
New YodcBeeause we have more support services 
than anywhere else in the U.S1 . • • ' ’ 

... 11. Compared with the ten other leading indtis- 

/ trial states,New York has more advertising agencies, 

. : ; > more employment agencies, more leg&l firms, more 
JV;- management firms, more public relations firms and 
L ’ . more real estateservices. . . ■ 

. 12. That’s a priceless source of professional ex- 

. if-* ; pertise for your company's management to draw from. 


i ’ !■ 

business community in the country. 

‘ 7 \ 13. You’ll have access to more worldwide trade 

promotion organizations and agencies in New York 
V:- State than you’ll have anywhere the U.S. • 
; --f" 14. There are over one hundred of them here. 

-.;f; And ninety overseas trade consulates. . 

15. Why do we have so many? Because more 
f : > >;• international companies are doing business Here than 
...■•>■5 in any others taitemAiuerica. 

16. Over two thousand of them, in fact. Includ- 
ing some of the biggest names in Europe such as 
Dunlop, from England, Philips N.V.,and Unilever, 
from Holland, ana Ciba-Geigy, representing 
Switzerland, to name just a few. 

17. There are nearly three hundred fbrei&n- 
owned manufacturing firms here alone. And they’re 
expanding and growing every year. 

. . 18. International companies headquartered in 
New York control $9,100 million in direct U.S. invest- 
ment: That’s 35% of the U.S. total 

19. Combined , the Sun Belt states still can’t 
equal that 

The advantage of more International banks 
than any other state. 

20. In New York State, we have two hundred 
and thirty-three foreign banks: They represent sixty- 
five countries and control in die vicinity of $58,000 
million in assets. 

21 . Five years ago there were only ninety-eight 
You can’t get a better indicator of international busi- 
ness activity in our State than that 

- The advantage of the biggest money market 
in the world: New York City. 

22. . New York is indisputably the financial capi- 
• tal of America. With an unparalleled infrastructure to 
support it i 

23. That’s why three hundred of the four 
hundred and eighty member firms of the New York 
Stock Exchange are here. And 75% of the capital of 
all its members. 

24. The foreign money market is more active 
here than anywhere else in the country. It trades up to 
$20,000 million a day. 

25. The biggest asset to you, though, is the kind 
of financial expertise and counseling you’ll have on 

• tap here. • 

26. And it’s not only available in New York City 
itself. Fifteen statewide multi-bank holding companies 
provide expert financial counseling on a local basis. 

27. So you can consult thebest financial specialist 
anywhere in the State. 

The advantage of one of the hardest working 
labor forces in the country. 

28 . InNew York, you’ll have the pick of the best 
workers in the nation. . 

29. Not only more professional, more creative 
and more diverse in talent and skills.But also more 

30. Over the last three years, our record of labor 
stability was nearly 50% better than the national 

3L It’s also one of the most productive work 
forces in the country. Consistently so, judging by U.S. 
Census Bureau figuresTor every dollar they earn, our 
workers produce over four dollars in value-added per 

The advantage of help 
from trained professional people. 

32. Although you’ll be a newcomer to our busi- 
ness community, you won’t feel like a stranger We’U 
give you personal attention. 

33. We have a group- of specially trained business 
people to help you through the ins and outs of State 
and local government. . 

• We call them Red Tape Cutters.Because that’s 
exactly what they do. _ • 

• 34. If you need help from any State or local 
agency or bureau, they know the right people to con- 
tact to get things moving for you. 

35. They’ll help you get your necessary permits 
and licenses a lot faster. 

36. They’ll alsb help you recruit staff and arrange 
financing, among other things. 

Two books that make 
all the advantages clear. 

37. Last year we published two useful books on 
New York State. ‘How To Do Business In New York 
State” and “Why It Pays To Do Business InNew York 

38. They’ll help you make mpre money here. 

39. If you’d like copies, -write to Governor Hugh 
Carey, at the State Capitol, Albany New York 12224, or 
contact John S. Dyson, Commissioner of Commerce, 
99 Washington Avenue, Albany, New York 12245. 

Or if you prefer, contact Carlos Basaldua, 
Director or Europe, 25 Haymarket, London, 

SW1Y 4EN. Telephone: 01-839 5070. 

Come to New York. 

40. Because when you count all the advantages, 
no other state outnumbers New York. 

That’s what it adds up to. 

We can offer you 
what the rest of America can't. 



«i:t r 




Financial Times Wednesday April 5 . 1973 

Articles oq tips and succeeding pages review the extent ’ 
of direct foreign investment in, jtg impact on ;the ecortoiny 
as a whole, methods-of financing purchases r and the sectors of iriilBsiiY 
favoured by the corporate buyers-^ most of them EuropeaqorJ^anese^ 

The lure of a 

. si: 

IN THE past five years foreign 
businesses have been expand- 
ing their direct investment in 
the U.S. at a pace unprece- 
dented since the end of the 
World War II. Whereas in the 
1950s and 1960s foreign direct 
investment rose on average by 
around 6 per cent annually, in 
the past five years it has been 
growing at well over 10 per 

Provisional estimates suggest 
that last year alone foreigners 

added some $3bn. to their 
equity interest in the U.S.. 
sums financed either from 
abroad or from retained earn- 
ings from existing U.S. opera- 
tions. This took the total 
value of their investments to 
$33bn. on the conservative 
statistical basis used by the 
Commerce Department. 

These figures, however, are 
arrived at on a balance of pay- 
ments basis and tend to under- 
state even the size oE foreign 

direct investment where it is 
financed by banks in the U.S. 
They do not measure the total 
oE foreign-owned assets — funds 
borrowed in the U.S., for 
example, are excluded. There 
are no up-to-date figures on total 
assets — the last reliable figure 
being one produced for 1974 
which showed that foreign 
investors controlled assets of 
S174bn., nearly half of which 
was in finance, insurance and 

Total Assets of U.S. Affiliates of Foreign Companies 


Other EEC 

. . .... - ; .**■» Mr— v - 

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> »;■ •'.•••VS 



Much of the growth has been 
of the traditional kind, with 
European, Japanese and Cana- 
dian companies investing in 
U.S. manufacturing industries 
either through, expansion of 
existing operations or by 
acquisitions. - Unilever's as yet 
uncompleted ' purchase for 
around.. $485 m. of National 
Starch and Chemical and the 
move into U.S. pharmaceutical 
businesses by such European 
companies as Glaxo. Beecham, 
Nestle and Bgyer have been 
among the notable acquisitions 
in the past year. : 

But decisions by companies 
such as Imperial Chemical 
Industrie's. Solvay et Cie, and 
the German electrical giant 
Siemens to enter into new 
joint -ventures in the U.S. or 
construct new plants have also 
figured prominently in die 
tnulti-mitiion dollar category nf 

Less -well publicised, and 
sometimes deliberately sup- 
pressed, has been the steady 
flow of foreign investment into 
U.S. property, farm -land and 
into small VS. businesses. 
There are no entirely satisfao 
lory statistics on the sums being 
spent, which often represent 
efforts by wealthy individuals to 
diversify their assets geogra- 
phically into the U.S. because 
of political or social uncertain- 
ties in iherir home countries. 
This fonzh of Investment Can 
best be summed up in terms of 

a.' qualitative -.pKrifce “Sight 
' capital." While nobody is sure 
just how much as involved, 
investment bankers and pro- 
perty brokers in the U.S. are 
ctfhfideot .the figures are targe. 

Commerce Department, statis- 
tics for 1976. suggest- that some ; 
$560in. was invested direedy by 
fdxeigiiers In ',U& . property. 
Not all of diis came'" fitvm. the. ■ 
private investor - as distinct 
from the corporate' or institu- 
tional investor — British pen- - 
sion funds, for .example, have 
been ' buying - some VS. 
properties. . * 

But the private investor ds a . 
significant figure in the market. 
Some reports have suggested, 
that list year several hundred 
million dollars of private' 
foreign capital .Sowed into the 
purchase of U.S. farmland. But 
. firm statis tical information to. 
corroborate such claims is not 
available. . 

-The latest surge of. foreign, 
direct investment is best seen 
as a continuation of a trend 
which got under way in 1073. 
particularly in so far as cor- 
porate investment is concerned. 
In 1969 Commerce Department 
statistics suggest that foreign 
direct investment in the U.S. 
bad. a total value of $7bn. 
The figures measure foreign 
direct and indirect ownership 
of U.S. equity assets. They 
take into account the nominal 
value of equity, net loans from 

Foreign Direct Investment 

The Intelligeiit Choice. 

If you're about to select a bank to handle 
your banking needs in America, here’s why you should consider 

European American Bank first. 

We’re expert In financing foreign 

European American Bank is a major American 
commercial bank located in New York with spe- 
cialized. skills in international finance. A large 
part of our $3 billion loan portfolio is devoted 
to loans to European companies doing’ business 
in the United States. Our total assets exceed 
$5.4 billion. 

We specialize in long-term financial 

Many of our international customers have 
been with us since they entered the American 
market. Here are a few reasons why. We have a 
carefully selected staff of highly-trained profes- 
sionals who know international banking and 
have a comprehensive knowledge of domestic 
and Eurocurrency iinancing, tax laws, and 
import-export regulations. Just as important, 
they understand the value of good service. 

We can give your American 
business a full range of services. 

Because we are a’ leading American banking 
organization with 97 brandies in the New York 
area and with offices in Chicago, Los Angeles and 
San Francisco, we can give vou complete service 
in the United States. We offer all types of cash 
management services— wire transfers, lock 
boxes, foreign exchange, etc. As a matter of fact, 
our expertise in foreign exchange has made us a 
major bank in the world in this area. Addition- 

We have an unmatched international 
banking capability. 

Through our six shareholder banks we have a 
worldwide banking relationship with nearly 
10,000 branches, subsidiaries, and affiliates of 
these major European banks: Amsterdam-Rot- 
terdara Bank N.VT, Netherlands; Credi tans talt- 
Bankverein, Austria; Deutsche Bank A.G., Ger- 
many; Midland. Bank Limited, United Kingdom; 
Societe Generate de Banque S.A., Belgium and 
Societe .Generate, France. 

• We also have our own correspondents in key 
cities in America arid around the world. These 
local bankers know the people you need to know 
and can arrangeintroductions i with key business 
executives, government officials and technical 

We don't take you for granted. 

Every one of our customers is an important 
customer. And gets treated like one with highly 
personal service. For example, at our head office 
we have six European departments— one for 
Austria, Belgium, England, France, Germany, 
and the Netherlands. Each manned by bankers 
who were bom and raised in that country, bank- 
ers trained there and in the U.S. as well. These 
individuals are experts who will handle' all your' 
business transactions professionally. 

Write for more information. 

If you would like to have more information- 
about European American Bank, please write 
Michael Rassmanrr, Executive Vice President, 
European American Bank, 10 Hanover Square, 
New York, N.Y 10015. 

European American Bank 


the overseas parent and- the 
value of reinvested earnings.; 
Currently- a holding of 10 per 
cent of the voting equity or its 
equivalent qualifies for inclu- 
sion in the statistics, although 
at that time the figure wai 25 
per cent 

By 1970 the figure had risen 
to around $13bh., hut u after 
1972 growth surged- to the cur- 
rent level of around $33bn. 

Inevitably, perhaps. \ the 
figures are best treated as a 
guide. In spite of efforts to 
tighten up reporting in tbe 
wake of the 1973 oil embargo, 
tills is a move which reflected 
among other thing s the fear— - 
so far unrealised— that the 
newly rich Middle East oil ■ 
countries would start baying up 
U.S. Investments on an unpre- 
cedented scale. 

In fact OPEC nations have 
confined most of their invest- 
ment in the U.S: to a significant 
increase in portfolio investment 
and bank deposits. Middle East 
OPEC nations made net pur- 
chases of some $5i>n. of U.S. 
equities between 1974 and 1977 
after having been negligible 
purchasers of U.S. stocks pre- 
viously. They have also in- 
vested in fixed interest 

Thus the pattern of direct 
investment in the U.S. in the 
past five years has to a- con- 
siderable extent followed tradi- 
tional lines, albeit on a much 
increased scale- and with one or 
two shifts of emphasis such as 
tiie rapid expansion of the 
Japanese presence. This is dis- 
guised in the Commerce 
Department statistics but the, 
Department's study which pro- 
duced total assets figures con- 
cluded that in these terms 
Japanese investors were the 
largest single country source, 
accounting for around a fifth of 
assets. A substantial proportion 
of this will, however, have been 
in banking, for example, rather 
than representing a long-term 
equity position. 

These factors aside, the bulk 
of the new investment is still 
coining from the major West 
European industrial countries— 
W. Germany, the Netherlands, 
Switzerland and Britain. Be- 
tween 1974 and 1976 Britain was 
the leading source country for 
acquisitions, mergers and equity 
increases, accounting for $1.2bo. 
of the $4.4bn. spent 

So far as tbe direction of the 
flow is concerned, the bulk of 
the funds is still going into 
various forms of .manufacturing, 
with electric and electronics 
equipment the leading industry 
group for equity investment in-, 
eluding mergers and acquisi- 
tions. In the 1974-76 period 
manufacturing accounted, for 
two-thirds of the number of 
transactions, with the electrical 
sector, accounting for almost 
9750m. of the $4.4bn. of invest- 
ment identified by value. Non- 
electrical machinery accounted 
for $246m. in this period and 
chemicals and allied products 

Although the Commerce 
Department statistics understate 
the assets which foreign in- 
vestors have invested directly 
-in the U.S., the fact remains that 
across U.S. industry as a whole 

foreign direct Investment has a 
negligible economic impact A 
Conference Board, study esti- 
mated in 1976 that foreign-owned 
businesses accounted for less 
than 2 per cent of the U.S. Gross 
National Product ami now- they 
.probably account -'for' no more 
than 3 per cent of gross private 
non-resadeiiti al investment-- 

Foreign investment In the U.S. 
is. however, significant in par- 
ticular industrial sectors. Thus 
-tiie 1974 Commerce Department 
study of the subject suggests that 
XLS. . affiliates of foreign [com- 
panies accounted for 13 percent, 
of U.S. oil refixting capacity, 10 
-per cent of petrol Sales, alziiost 
a quarter of pharmaceutical sup- 
plies and man-made fibre capa- 
city and a third of dye 

Foreign investment Id the 
TLS. is also considerably smaller 
than the - investment of U.S. 
entities abroad — which is not 
surprising since It was the U.S. 
■multi-national-' which set the 
trend, particularly- after World 
War n, " towards corporate 
diversification around the world. 
Commerce Department esti- 
mates suggest . that on a com- 
parable basis XLS. direct invest- 
ment. abroad had, a value of 
$150bn. at -the end of. 1977 
almost five times the figure for 
foreign investment in the U.S. 

The factors accounting for 
the growth of investment in 
the U.S.— and more particularly 
the surge in the rate of growth 
since 1973— are legion and in a-, 
corporate sector each . 'entity 
will have its own rationale. 
The 'attractions of a base in 
the 'world’s largest economy, 
the lack of restrictions " on. 
foreign investment across most 
areas of the economy and the 
countiy) growth prospects in a 
capitalist society and an oppor- 
tunity for profit are common* 
place explanations. . 

On, the other hand, particu- 
larly since the barly part of the 
decade, political and social 
uncertainty in some European 
countries, profit controls in 
other? -and concern about 
labour problems have been an 
influence in encouraging in- 
vestment in tiie U.S. . . 

The decline of the dollar and 
the rise in wage- rates outside 
the U.S: have tended to remove 
what used 4o. be seen' as an 
important -harrier-to companies 
entering the U>S. — high wage 
rates coupled with the' weak- 
ness of the US* stock market 
during much erf -this decade, 
These - trends bav$ also tended 
to make U.S. : acquisitions 

cheaper, at least in hist 
terms. Whether some a 
recent acquisitions will 
cheap In the long run will 
ever, depend on their 
form an ce and the perfon 
of.the.U.S. economy as a- 
in future. 

Looking at the list of co: 
tions which have been esta 
ing new operations in tin 
in .the past few years su> 
that another factor is sin 
desire to expand geograpb 
on the part of foreign comi 
which have been gr 
rapidly, partly through me 
and now feel that they ar 
size where they want a co 
ment in tbe US. more coc 
siirate with their size; TJnil 
-move to acquire Ng- 
Starch, for example,- in- 
reflected the company’s-:, 
that .its U.SJhase, aKhoja. 
nificant in terms of cirtafl. 
ing its 7 Lever Brothers- 
ton operations; was 
.relation to the size^of 
: On the other hand,-^ 
about protectionist,: >3 

against their -export^ W 
pelled . some Jppane&P 
tronlcs .companies to inf 
-the U.S., while the groW 
portance of the dollar iff' 
trade hasheen-oge Oftfrq . 
behind .the rapid grostih* 
vestment by foreign .baa* 

Predicting whether ar% 
rapid expansion oTthe fi 
‘corporation’s stake in the 
mil continue is a ha£ 
exercise. There 
tent that profits m ; 
nutted home, a built-in i; 
sion inherent- in thfew 
ment to new 'pro jects f . 
tasned earnings. ■' Cnrrtffl 
the Commerce DepeTO 
basis about half of the $ 
year now being inv&teA r 
from -retained earningsr'l. 
'with .-the U.S. inflatton-rat - 
-higher- than, soo» rOtio- 
dustrial countries, and., 
costs rising, a -more j&. 
mood may be em e r ging * J: 
■ Last year, for extap# : 
visional Commerce Depaj. 
statistics suggest sofoe4 
in tbe -pace -in -the \ 

ter; reflating perhs^ - * 
payment of dollars’ iron, 
affiliates to their- foreign:! 
companies. - - On this. ‘0®®^ 
tbe factors wfcich.vhw*; 
mergers and acquisitions - 
tive to major ,U-S- 
and have led to The : 
boom- of the pasf 18. ®' 
apply to some degree 
foreign multi-nationals 

Stewart Flei 

- Chf,; 


(Some major plant expansions announced In the U-S* W*' 
by foretgiMauitroned corporations) r ; 

' ’ . Ptojeet and State 
- :l location . . ; - 

Shell pH, 

Alum ax (controlled by Am ax 
50 pev BDteUl 45 pe and - 
Nippon Steel 5 pc) 

Ethylene plain , *' 
'Louisiana • • • _ 

-Primary aluminium 
plant S. Carolina 

Id/Solvay et Cie./Chainpllti 

Petroleum — ■ 

H offman La Roche 

Ethylene. cra<*er 
* -Texas . ■ • 

Plants In Texas . 
and New Jersey 


Motor . cycle plant . 
Ohio - : r 


(Some actual and proposed -acquisitions df bnSineaes during the Asproi 


Unilever (UJL-HoUaqd) 

Nestle (Switzerland) .' 

Thymen (W. Germany) 

Bayer (W. Germany) -.1 

Beecham (UJL)" ; 

Henkel (W. Germany) 

Recal (UJC) 

Turner and New all (UX.) 

Cadbury Schweppes (U.K.) 

Consolidated Goldfields (UJC.) 

Glaxo Holdings (UX) 

TUUng <UJL) 

C. and J. Clarke (UX) 

Boots (U.K.) 

. U.S> Company jy ■ ■ 
National starch and Chranhaa 
Aleon Laboratories- ■ 

Budd Company .. ; - 

' Miles Laboratories r 
Calgon - 

General ; MiHs ClhemJcM 
- Milge Electronics. . - 
; Philip A; - Hunt Chemxcm 
' Peter PanL . . y. -.;-' 

Hydro Condnit : -r 

.Meyer Laboratories 
* Clarkson Industries 
Hanover Shoe . 

Rocker Pharmcal 

. t 


21 - 


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r. • 5.:- •i’: 

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1 ' Xl *** 

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d ,l< 

, iS(^.i?5 

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}IK 5 

Financial Times Wednesday April 5 1978 


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: • • “ r..* 

J ’fr. 
. * V'. "■ ? CLli ^£lJ 6 . 

■ - y ... i 

•: 'i ■ :.e; . , 

■ ■ ■■■ '■‘•"V 

■' ” , >. -[PJ 

The trading floor oj the New York Stock Exchange. 

Setting up cash 
for a deal 

ONE OF the first things anyborrowers can normally raise There are instances where pri- year money at around Si per 
foreign company planning a U-S. funds for 5-7 years. vate dollar placements have cent, at the moment A foreign 

-acnui<dtinn learns miieMv fothat There are cases of banks been done in Europe and in company would have to pay a 
•RttL-w ,v going *» long as ten years and the Middle East but rarely does premium but would normally 

financing the deal is generally g 0me gjg even, prepared to lend the maturity extend beyond be able to raise the funds at 
the least of its problems. The fixed rate money for thaftperiod ten years and apart from below 10 per cent. 

U.S^ has the largest capital mar r as , well;.. • . the., fixed rale this source of The premier source of U.S. 

ket-in. the. . world and with- up.- • Once a company has decided finance has little advantage over for any fore j gn company 

wards of 14,000 banks .the to seek bank financei it. has to a traditional commercial bank ^ the public debt market which 
financial - community is hungry chooto whether to rajse it m the loan. For domestic U.S. com- ^ ^^0^ referred to as 
. u ■- ' r* domestic ; U.S. 1naj$et or the p&nies the U.b. private place- the “Yankee’’ bond market. The 

for business. If Chase Mm- EuroioUw narhit In both meat market is a very impor- o?tb e moneyed be“ 
hattan turns its rfose up at a cases the proceeds are the same tant source of finance for • f f or eien Governments and 
deal, that is not to say that the but at any one time one of the periods of 15 to 20 years and on j handful of foreien com- 

First National Bank: of Boothitf markets is cheaper. In the US., upwards of $20bn. is channelled h 

will do the same. It oavs to loans are normally priced through this market annually. v 

.j ** npcnrdm»'.t»-’a -formula linked Ton oualitv comoanies can The disclosure requirements 

shoo around. according tor' a formula linked Top quality companies can ine disclosure requirement. 

TWnct aMiniftitinnc are prime ntf e with an allowance easily raise anything from $10m. are such that few companies are 

_._5 made ’for compensating to well over $100m. at one go. *° make the effort. 

f 13 ? U rwi°«f t ^F te rtk. t:a ^ balances.' In the Euromarkets but it is still a slightly When 1CI first came to the mar- 

tender offer, we of me - tliere is . no need for compensat- mysterious market for foreign a few years ago it had to 
quirements which . need .to oe ^ balances but a commitment companies and although its change its accounting policy and 

fee ’of. perhaps i per cent is advantages are well rehearsed, spent a staggering amount of 
followed is that the PPJQbaser - foreign companies have prob- mon ^ a ” d le S al hme complying 

demonstrates to me Securities E n rodo]J „ rates are normaUy ably raised less lhad $lbn. on witii SEG rules, ftesumably it 
and Exchange Conm^on how, slight]y h , gher u.S. this market since U.S. capital fee ]s }t was worth -the trouble 

it is going to finance ^he acquj^ - domestic rates but since the controls were scrapped, and the !t now bas access to a 
tion. For the mg Continental removal - of cap ital controls figure may be as low as $500m. Reaper source of finance than 
companies such as ; J^yer. earlier in the decade both ThArkk „p eith er the bank or private place- 

» r^SSrSj*^- markets appe^.to have been an the K 

rarely a problem since they import^ S0U rce or inve ^ ors this market— Se y ear ' l issued * 175m - o£ 25 y ear 

simply transfer cash from their ^n» ds .- for flSandn^ u.S. acqui- u S msurance coLpame^-h^e debentures on a C0U P° n of ^ 
domestic resources. Bwmr. ^ ^ment Euro^ on how mu^Tthey per cenL But for ”»* ^ 

forUK. rompaniesltusi^htiy d0]Ur borxwing is slightly companies, gelAing an SEC regis- 

more difiBcult o£ ^ ■£? cheaper and a good quality com- Typically It is lust 1 per cent lration is more rouble than it 

stringent Bank ofEn^and.Ex.^^^ probably ^jse ^NalurLly thi is worUl - 

a tJ_ of a per «nt oSttoS ^ 


send money out through tiie -'are ranservative and nur a bo rei;ent months a number 

dollar premium but in practice f^l|r||/vp - ' premium un aualili' aou size of U-K - companies have been 

this is veiy much a last resort I^UOlCe. Sa^nLlv It would be dUD biiaiuunfi their U.S. acquisitions 

In * Practice . VJK. Given ^ bank finance is not -^ t for a relatively unknown ihrougn currency swaps. This 

normaUy finance the ""IL 0 ! nonndly available for terms tj.K. comparu' with a net worth is a relauvely new -ofa-shoot ot 
their U.S. acquisitions rtte ibey0Bd 10 yea j Sj most com- ; o£ les st han £50m. say. to come the back-to-back or parallel loan 
locally., or tiirongn the iuro- pajues wish to refinance, their this market. When a foreign wh ldi has been a popular means 
dollar market - ■ .U.S. bank borrowings at sOJneV iwnpaay doe ^‘ tap market ■ o£ hnancmg UJG investment 

The .easiest type of financing g^e. Apart from the small elite it has t0 d i sc i ose a consider- trusts* Wall Street portfolios iu 
in the. U.S.- is bank financing, av {ch. as ICI and BP which have. . ab j e amount about itself and ib e past- Continental Illinois 
and. this forms r tne key plank ^ dne xbroifgh the whole para- agree to certain covenants Ll d., tne U.K. merchant bank- 
in most foreign acquisition .pbenalia of registering with the- which are often more onerous mg arm of the Chicago bank, 
strategies where it is necessary securities and Exchange Com- subject to back home, has carved a special niche tor 

to raise: external funds. One or mission and': thereby gained j^gai f^g tend to be high and itself in this specialised field, 
the obvious advantages of bor* acc0 ss to the public debt. one banker in London, for Basically, what Cl does is to 
rowing from a bank is «at there juarket foreign companies e3tam pi ei C jted a case where up find a U.K. company with sur- 

is tremendous . flexibility, a normally have the choice'of tap 1 ; l0 ^ sets of lawyers were in- plus liquidity which wants to 

company might want to renn- pjng th e Eurobond market or V0 i V ed in a complicated private acquire dollars and then 

ance its acquisition in the Euro- u_g_ private placement placement. The big institu- matches it with a U.S. company 

bond or private placement Market. - ■ tional investors are much more which has plenty of dollars and 

iriarket at some future date, but u n tn the beginning of last thorough than their European wants sieving. And Cl stands 
in the meantime the awn^ition year Eurobond market was counterparts. in the middle. The. currency 

can be financed by bank loans, dosed to UJC borrowers with H ^ *». at swap, as its name implies, is a I 

This enables a fonrige eo^pw :the eaceptiop of a . handM Hwwer tore are«^ tot 

In recent months a number 
of U.K. companies have been 

rur , i ur rm W c v.ooH nfitno in Pari 5 panys uaiance- sneei ana aa- 

early. Consequently, a foran a n attractive source of finance- Newark New verseJ y ^ searing the 

company could for U.S.- acquisitions. Unlibe- . nartiv exnlain this currency swap has tlie advantage 

bank loan tor the *f t **°™ the bank maritet the big attrac- ^ ^pSt tordS * off the balance sheet, 
of the acquisition and then. find tipu pf Eurobond. toarket is “Oro lmportam, ... . , 

Jfter 18 months that the time ^ a boiwvrer can raise fixed, boirowers- are now structuring It will only appear as a foot- 
?s right to refinance its acqulsi- ^ opposed' t0 floating .rate their loans so that they can be note indicating a contingent, 
. ■ ■_ «; e inng term- debt mnnftv - qince the TJ K. deben- treated -as a U-S. domestic liability, ul reckon that around 

non m m long term .m UK. “^ borrower. If a foreign $250m. of such deals have been 

There are plenty o£ other ^soS^emthis ^especially ^rrower can ** domesticate ” put together over the last year, 
advantages. A bank' tine- . o£ attra ctive- to UJKL companies. -the loan, the amount of money The «i: ms raised vary between 
creS ram be put together in u addition, the degree of die- ^ the insurance compames $5m. to $25m. and matunlres of 
ratter Of hours for a top. c i 0BU re and the documentation «" Put up is considerably in- ten years are about maximum 

of money which can be raised The traditional Eurobond in- “* aui ® e “Lt ir While this sort of deal is 
are substantial and run, into vestor-^the infamous Belgian role. Consequently, if foreign attractive to U.K. ewapantes at 
hundreds of millions of dollars, dentist— is far less demanding company. can prave tnat us u.b. lhc raafflenC because, they have 
In addition to speed and size, than the big U.S. institutional {JJJ® 11 ®* 1 .{* Si n 5 < SJ" , iS plenly 01 surplus u ^ dit y its 
bank borrowing is done behind investors when it comes to ° potential is limited for deals 

the scenes and., requires covenants and disclosure. This the private. placemen t mareet above S25 m . t since it is hard to 

nowhere near, as much is one of the' main reasons why js^ade mucn^easie.:..ij 1- ^ C0U ni erpar ties willing to 

closure or' documentation ns the market has been so sue- tion, the amoun f m y avai^ advance very large sums. For 

private placements, for example. cessfuJ, -and on. balance ”wo f S n C w tostkutions are lbe big company ' bank finMce 
For many European companies companies . normally prefer to number 0 ^ ^ will continue to be . the main 

this is an Important attraction./ tap this market unless ir is seen r nan A<«n- financing vehicle with the Euro- 

Naturally, the banks often to be much more expensive a? *“® « r..n f t c S8 °" bond and private placement 
impose restrictive covenants on than the U.S. debt market SSLTis aviiiahle markets Providing ihe oppor- 

the borrowers but there .are no However, the Eurobond mar-. f ? tunity to refinance borrowings 

hard- and' fast rules. The bigger, ket is not always open to U.-K. the terms noimlw look attrac- at some later stage jf necessary, 
the company the less. restrictive borrowers ..rand consequently tire by U.K. standards. A top 

toS^tftod.t* .1* A.,.Jte*}J*nla« t» to. US. horrower prahaWy William HaU 

far. as maturities. are concerned private ’ placement market be able to raise 550m. of 15-20 vYUU*m nau 

American Express International 
Banking Corporation 

At December 31 , 1 977 


DgcerubgTd.IgTT Da: gr»t 1076 

Cash and due front banks 

Tima depots 

Investment ssc urines— at cos:: 

U.S. Go.c'r.ment obligaiiojc 

U.S. Goverimenl agencies' obiiaat.sns 

SiaK ar.d municipal obligations 

F ore:Qn gc /emmenf obligations 

Cither fcc-iis arid obligations 

7c*: ji f.-nartef: 1977. S570.G37,CGC; 

*97*3 S5i 0,658,000' 

$ 427.586,000 



23 .957.000 


• -70.769.000 

S 351.486,000 


" 40.316,000 


' 33.953.000 

569,344,000 511,069,000 

Loans and cl.scounis, less rci^-. e-: *277, 

f 559 jOO.OOO: 1976. Sol .800 l-CO 

r>ccc'jr:i '-wabie and accrued -r.&ei: (neif 

Lana ou: , di’-^» and -aquiprr.^r.:- v cc ~‘ nr. : uaing 
loa ? *?>j c-4uiDmeni: 1 977. S 1 2.99- 000 1 97"6. 

S’ 620.000 1 ie£s accumulate cl aepreciauc-n and • 
£n»!nsaii5r.: 1977. SI b.453.000, 1276.£15.1c5.000. 

CuiiciRio's. acceptance IUid» 1'I> 


Liabilities and Shareholder's Equity 

Cucto'r;.; :c' occoiiii and crec;*: t,a:ar,ce*: 





2=03.744 000 2,030.679,000 

Jjr.-loi’.OOO 85,610,000 

3o.230.0C0 31.303 000 

143.751 000 ' 82.887.000 

90.132.000 - 61.935,000 

S4.G07 031 .000 S3 75 i .933.000 

Special dep.;,:,ii i.abiiilyic* U S G cv-e-nrrer.; 

Feders. :ur*;: ? nurchaoca and other nat'c-.vad :-ando 


Du*? iz E.>Dre£.«,Coni&ai-..- 

a;.-: cob. .ciiane^. met; / 

Dr .if:*: c-jrrr.rvjsng 

AcceD’.-ices buiiianoipg 

Ac oou'i j oi', at/‘e ............................. 

Otner uac.l.ties 

Total liabilities ........................... 

Share;-..j!do:'i c^ull/ 

Uipi'Jl SiCC- - 

pielerrej— 5°o cumulative. SI .000 oar-, a'^e: 

ij'nc.ri^j anc out siancrna— 1977 . 

40.000 snares; 1976. 25 000 snares 

C'c;rr>Tic-n— authored ana o'Jts’ar.a-r.j 

60. 000 snares 01 Si 00 pa rva.ue 

Capital surplus ■ . . , 

Nei unrealized losses cn equity securities cavied 

a: lower of aggregate co si or market 

Petained earnings 

SI. 249.405,000 
2 505.597.000 


22, "4 1,000 




S 937.897.000 




n 0.334.000 


53. 955.000 



4,394.135.000 3.578,016,000 

Total shareholder's equity 


6 . 000.000 






6 . 000.000 





S4.6 07 031.000 S3.7S1.S33.000 . 


H-.I.U i'.- ir j ;r. mc’C^a’riwnofSw 

Bc-i'O. Uo"? cf Swc. 1 ruu; Conroinv of tov Yorit 


V-'-.e Crw." ■*»ar >:t n*t Sc-va, Ai*a-:icjn 
iMsi.iji'C' .v CffWiW"- E*eciir*.e 
VhK- ^vj’^.-fii. inc* can E<pre;iC«ripjn/ 


l n.<iin.aM -■ ;iu/ Boirc a *a l •"«? j!*-- <f 

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rnftnc' V ccOii'-'ni'i Si"0 CwflClOf, 

Grncul F.yr-y. CtfC-cMM'i 


Cra«iTiwc! :>ie E*c*jii*-i*j CaTTfirce. American 

L-pr^v^Canirijny ' 


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Banket. 'it,-.*. >r» 


C.'Wdi r..;«.viar <ii’.Tl:u:4ec 

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t- i'<?ini*i'o* i eii ha»-. tfi-..,-: Con sa r./ 


Pie -.-□i'll' a.- . . w ici* i £ ■ Con'pr«*y 


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C 11 'jJa Di-c-:rr-: f pt,icu:i>?s 


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C'lVi* 1 . *‘re< v ,?n E •pit's s Cfunp*-/ 


Pa.- aw. £,oi.-.> 1 5. iSK* ■- Har L*T»an & Co. 


It...’ i.'! .a : —i in ot ff-e Ecj:d. Aner.-iin D press 

Idieinainn J E arming Coipor jiion 


Ft-mv>r ut .emor a: P^’.ini-.'krj.'i.a. 
iwinc: u.t. ^noa-. 'icor to xr,t> Unftcd Natfora 


Crmtiman r.i rha E'cc^.'iwe Comniitce. Slone & 
ntnit*. hicpit-oiaic-d 


E ..mi: -c Cwi :c and C kiccioi o! The Heniy 
Luce Foutidaiik-n, lnc. 


ChJirnwr* of ir,* Boa.’<3. Mot<i : Corporation 


Adviixr Juilic Board ot Directors 

gggESS international Banking Corporation 

p'ovnJostu&ineiw: linancral tr,Uluiionc: and moiarauale vtatiaftidecht<ca*5iiri(emaiion^,. 
lirtanc-ai rx iu»no -tion lc-m Mmxking ca&raj wd nade hnaivctr . lean ana p.'d,ea 

Iinancejaxugn exchange, collection, deposit and money litmaler &ai\ice&, 

Commefcial Banking Branches and Subsidiaries: Ah-islerdam. Antibes. Antwerp, Athens, Bahrain, Basle. Bombay. Brussels. Cairo, Cal- 
cutta, Cannes. Chittagong, Copenhagen. Dacca, Dubai. DOsseldorf, Florence. Franklurt. Geneva. Grand Cayman. Hamburg. Heidelberg, 
Hong Kong, Jakarta. Jakarta Kota. Karachi. Khulna. Kowloon. Lahore, Lausanne. London. -Manila. Mestre, Milan. Monie-Carlo. Munich. 
.Naples, New Delhi, Nice. Okinawa, Paris, Piraeus. Rome, Salpnica. Seoul, Singapore, Taipei, Tokyo. Venice. Vienna, Zurich. Agency: New 
York Cify. Representatives: Birmingham, Caracas, Edinburgh. Manchester, Tehran. Commercial Banking Affiliate: Egyptian American 
Bank, Cairo i49% owned). Merchant Banking Subsidiaries and Affiliates: Amex Bank Limited, London; American Express Middle East 
Development Company SAL. Beirut and Amman; American Express Middle East Development Co. (Amedeo- Egypt) S.A.E., Cairo; Ame* 
Bancom Limited. Hong Kong (75% owned); Multipar Empreeridimentos e ParticipacOes Uda., Rio de Janeiro (30% owned); The Bancom 
Group, Inc., Manila (29% owned). • 

International Headquarters: American Express Plaza, New York, N.Y. 10004 

Manufacturers with U.S. expansion 
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The State of Maryland. “Home” 
of ihe world-seaport of Baltimore, 
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delivery from Baltimore are 37% of all U.S. manu- 
iacturers and 35% of the nation's consumer market 

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Phone (02) 512.73.47 


Financial Times Wednesday April 5 1978 


THERE HAVE been times 
during the past year or two 
when the rush by European 
companies to invest in the U.S. 
has shown signs of becoming a 
stampede. While the under- 
lying economic and commercial 
reasons for making U.S. 
acquisitions are sound, there is 
a danger that some companies, 
in the desire to keep up with 
the latest fashion, will make bad 
buys. One is reminded of the 
period immediately before and 
after the U.K-’s accession to the 
EEC, when a number of British 
manufacturers tried to establish 
themselves quickly on the Con- 
tinent by buying a local com- 
pany and later found they had 
bought nothing but a collection 
of management problems. -The 
indications so far are that the 
new UJS. investors have learnt 
from these mistakes — and 
from the “merger mania" of 
the 1960s. ' _ , 

Most of the acquirers have 
been taking a cautious and 
realistic approach. The 
tendency has been to go for well- 
managed* medium-sized com- 
panies which have a strong 
position in a particular market 
— not necessarily a market in 
which the acquiring company 
already competes (this could, 
lead to antitrust complications), 
but one which is near enough 
to its main business for the 
management to understand. 

Cutting printed, circuit plates at Siemens , Munich. 


Ideally, perhaps, the investing 
company should be so confident 
in its technology, the quality 
of its products and its selling 
ability that it can afford to 
put up its own factories and 
attack the market in it own 
way and with its own people. 
This was the route followed, for 
example, by Michelin of France; 
which since its first investments 
in the U.S. in 1974 has steadily 
enlarged Its share of the domes- 
tic tyre market— mainly on the 
basis of the technical merits of 
its products. 

Clearly this is a policy which 
is much easier to pursue if the 
market has already been de- 

veloped by direct exports from 
the home base. Thus Volks- 
wagen already has a nation- 
wide' network of dealers built 
up from many years of export- 
ing to the U.S.; the products 
from the German company’s 
new Pennsylvania factory, due 
to come on stream later this 
year, have a ready-made outlet 
In the same way Sony built its 
own TV set factory in California, 
and Honda is planning to build a 
factory to make motor cycles, 
perhaps to be followed by a 
car assembly plant 

Yet even those manufacturers 
which already have an estab- 
lished market for their products 
often prefer to acquire a domes- 
tic company in the same field. 
Such an acquisition provides a 
manufacturing presence in the 
market more rapidly than the 
construction of a greenfield 
plant and often brings market- 
ing advantages. It was for that 
reason that Matsushita, instead 
of following the example of its 
rival Sony, decided in 1974 to 
buy the TV set operations of an 
American" company. Motorola — 
although the subsequent per- 
formance of that acquisition 
may have made the Japanese 
company- wonder whether its 
own greenfield operation might 
not have been preferable. 

As In any other country, the 
well-managed company with a 
strong market position tends to 
be expensive; the owners are 
reluctant to sell, except at a 

price /earnings multiple which 
some European investors find 
bard to swallow. The Motorola 
plant would presumably not 
have been for sale had it not 
been in commercial difficulties, 
in common with most of the 
smaller TV set. manufacturers 
in the U.S. Philips, the leading 
European consumer electronics 
company bought Magnavox in 
1974 for much the. same reasons 
as Matsushita. 

The idea of deliberately look- 
ing for a badly managed com- 
pany, buying it cheap and then 
making a kilting by turning it 
round is not one which has 
appealed to European investors. 
Where foreigD owners have 
found themselves in the posi- 
tion of having to rehabilitate 
a company in trouble, the re- 
sults have not been impressive. 
For example, Creusot-Loire, the 
French special steels and engin- 
eering group, first tried, in 1974. 
to establish a relationship with 
Alan Wood, a family-controlled 
steelmaker. Although it 
acquired a minority stake it 
was unable to develop a part- 
nership and later sold its 
shares. Two years later the 
French company bought control 
of Phoenix Steel, a special 
steels manufacturer which had 
had a poor profit record. The 
hope was that with new man- 
agement, better technology and 

a substantial, investment in mp&! 
era steel-miking facilities' the." 
company could greatly, improve 
its market position and start- 
making healthy profits. , - 

It is stQl too early to judge 
the results of Creusot-Loire’s tit- 
vestment, but the impression 
from this and other cases ' Is 
that European investors should 
not be overoptimistic about jtae. 
speed with which a sick Ameri- 
can company can be restored to 
health. Another iess-than-suo- 
cessful experience, at least in 
the early stages, was that of 
Plessey, which bought Alloys 
Unlimited in 1970 and. had to 
put up with several years -of 
losses before the company be- 
gan to come right 

The reasoning ' behind 
Plessey s purchase could not 
have • been faulted. To' -quote, 
from the explanatory letter to 
shareholders in 1970, . “Your 
company will acquire immedi- 
ately a number of products and 
know-how which are important 
to our successful development 
in world markets and which* 
because of the rate of change 
of technology, it would be tin-' 
possible to attain on 'our. own 
on an acceptable time scale or 
at a tolerable development cost 
. . . At the same time we shall 
achieve in the U.S. a substantial 
technological and manufacturing 
base and an opportunity for our 

existing businesses: to increase 
Their^ penetration pf the world’s 
leading market” : ■ . r . 

It . is precisely this line of 
argument Which has led Other 
Euro pean -electrical -mid elec-, 
tronics ;• ^companies, ■ such as 
Philips . and more • -, recently 
Siemens, to acquire stakes in 
tb e U.S; integrated circuit and 
nrim>-coirnputer industries. 
Siemens; which now has control 
of idtronbc and a minority- stake 
. in American Micro Devices, 
needs access to American tech- 
nology if It is to maintain and 
improve its position in -the 
world - ; electronics markets. 
Similarly GEC has made no 
secret of Its desire to establish 
a bigger presence in the U.S., 
probably though not necessarily 
in the electronics and related 
fields. It has hired Mr. Geoffrey 
Cross, formerly managing.. direc- 
tor, of* IGL. to - act as an 
: American-based “scout” to look 
-for .businesses which .could he 
of interest to GEC. 

' -Investing . tn-‘ the:.- U.S., 
especially in ; advanced-techno- 
logy sectors, involves high risks; 
it is easy to make mistakes. One 
way of reducing the risks is to 
form, a partnership with an 
American company . which 
already has an established posi-_ the field. This can some- 
times lead to antitrust complica- 
tions (for example, the joint 
venture' between Bayer- of 
Germany and Mobil in polyure- 
thane chemicals had to be dis- 
solved),. but where the joint 
venture has only a small share 
of the relevant market these 
problems are unlikely to arise. 

One interesting example of 
this approach was the decision 
by Fiat and Allis-Chalmers to 
pool their worldwide interests 
in construction machinery in a 
joint company controlled by 
Fiat. In one sense this was a 
move by Fiat to fill- out its tine 
of . construction equipment by 
Including the larger -machines 
developed by Allis-Chalmers for 
the U.S. market But another' 
objective was to secure, through 
the' relationship with Allis- 
Chalmers, direct access to the 
world’s largest market for this 
type of equipment Allis- 
Chalmers, though yezy .much 

smaller than, the leaders in the 
field such as Caterpillar, had an 
established position on which 
FiatTcpuUl build. In much the 
same way Siemens has formed 
A- -partnership . with the same ' 
American ^company — again with' •' 
Allis-Chalmers holding. . a . ' 
minority position — in power ' 
generating equipment Another 
example is the marketing agree- v 
meat announced - last -week 
between Renault and American 
Motors. - . 

An. extension of this"' 
approach, involving higher risks 
bfl^ayoiding the financial and 
management problems of a - ■ 
partnership/ is To buy outright *' 
the . unwanted' subsidiary of a- 
laxge American group/ During’ : 
the past few. years there has- 
been ' something of a *-d&. 
merging” process going on In 
American industry. After the • 
"T9T3 oil crisis and _the general - 
realisation that growth" and 
profitability .would be more 
difficult to achieve- in the 
future, a number of U.S. coin- 
panics 'decided to divest them- 
selves of peripheral businesses' 
Which they had acquired, for - 
reasons of diversification, in the 
1980s and . early 1970s. ; 

Many of : tbese businesses L 
were perfectly sound, but Were ‘ 
considered too remote from "the 
parent’s main '.field of activity: 
to justify further investment 1 : 
This p rocess has created-,' 
opportunities which. ' European, i 
acquirers have been quick to 
seize. Henkel of Germany has 
bought the chemical subsidiary 
of General Mills. Beecham has - 
bought the Calgon water-treat* . 
meat business from Merck and- 
more -recently an anima l health 
business from Rohm and 
Thomas Tilling- is planning 
to buy Eaton Corporation’s": 
security products business^: 
these are some recent examples. - 
- As long as the price is right'-, 
this type of. purchase can offer V 
tile best of all worlds— an estate- ' 
lished business with a strong 
market position, a sound man-> 
ageinent already in place and : 
none of the legal and other-, 
complications of appealing 
directly to shareholders. Far- 
many . foreign companies it ti - 
the preferred method of enuy .- 
intp the U-S. market ~ 

Geoffirey Owen; 



PART I MAY 22, PART II MAY 30 1978 

The Financial Times annual Survey on World Banking will be published in two parts — 
Part I on Monday May 22 and Part II on Tuesday May 30. The proposed editorial content 
is set out below. 

Part I 

INTRODUCTION The world economic and 
financial scene. World-wide recovery from 
recession remains sluggish, despite growth in. 
the U.S. 

MENTS The International Monetary Fund 
calls for more rapid economic expansion; the 
role of the Fund and central bank arrangements 
in providing support for countries with balance 
of payments problems. 

OIL FUNDS Outlook for the oil price against 
the background of the decline in the dollar; 
impact of the growing import demand of the 
oil-producing countries. ■ 

in international activities against the back- 
ground of generally depressed home demand in 
the industrialised economies. 

INTEREST RATES Sharp declines in many 
European countries, particularly Britain, 
reflecting in part the weakness of the dollar. 
GOLD The market price has risen sharply to 
its highest levels for nearly three years as 
demand has revived. 

monetary union has been revived by Mr. Roy 

have been taken within the European Com- 
munity towards the harmonisation of banking 
controls; new legislation expected in the UJK. 
THE CITY OF LONDON The City has held on 
to its position as a leading international banking 
centre, but there are signs of increasing com- 
petition from other centres. 

national banking community continues to find 
the City attractive as a centre for offshore 

changes have taken place in the consortium 
banking business. 

EXPORT FINANCE Important moves in Britain 
to reduce reliance on sterling and continued 
international concern over the issue of com- 
petition in export finance. 

The remaining articles will review economic 
and industrial developments in the countries 
listed, with particular reference to the banking 
and finan cial sectors: 










Part n 

THE POUND The sharp revival of confidence 
in sterling, coupled with the weakness of the 
dollar, has presented problems for the U.K. 

THE DOLLAR Sustained pressure on the U.S. 
currency against the background of the growing 
CT.S. balance of payments deficit. 

EUROMARKETS Further expansion of activity 
in both the medium-term credit market and 
Eurobond issues. 

PROJECT FINANCE Development of inter- 
national banking to meet the needs of large- 
scale project finance. 

Reliance on a recovery of commodity prices as 
the industrialised countries expand; balance of 
payments problems and concern over possible 
defaults on their debts. 

DEVELOPMENT FINANCE The role played by 
private banks and the official agencies in 
overcoming the difficulties of the less. developed 

NEW CENTRES Growing competition felt by 
the established financial centres from new 
markets and offshore banking centres. 
Economic, financial and industrial developments 
in the following countries: 

U.S. (home) 

U.S. (abroad) 
JAPAN (home) 
JAPAN (abroad) 




For farther details on the editorial content and advertising rates contact: 
Adrian Seeker (European Dept.) or Micheal Prideanx (Financial Dept.) 
or Helen Lees (Overseas Dept) 

Financial Times, Bracken House, 10 Cannon Street, London EC4P4BY. 

Tel: 01-248 8000. 



The contsor and publics don dates of -Surveys in ms Financial Ttmea am nbled in dune a i the dUcmton of tM Editor. 

Union movement 
short of lustre 

ONE OF the starkest contrasts 
in the U.S. to-day is between 
those responsible for running 
large American corporations 
and those with the task of rep- 
resenting some of their em- 
ployees. The economic 
instability which has marked the 
1970s has shorn American 
management of much of its com- 
placency and nowadays, the 
quest for Improving managerial 
skills and innovative techniques 
occupies a great deal of time 
and resources. 

The trade union movement, 
on the other hand, has never 
bad less cause to be complacent 
and yet rarely has it seemed so 
lacking in initiative and in 
dominant personalities to give, 
leadership and direction. Not it 
must be pointed out, that this 
is a common perception of most 
Americans. Survey after sur- 
vey points to a widspread belief 
that the union movement has too 
powerful a leadership which has 
only tu puli a string for the 
Administration -and Congress to 
jump. Unions are widely seen 
as excessively monolithic and 
self-interested and as a group 
altogether too powerful. This 
image is part of the paradox of 
American unionism. 

The American Federation of 
Labour — Congress of Industrial 
Organisations is a highly pro- 
fessional lobbying organisation 
skilled in the exercise of politi- 
cal leverage. American la\vs 
governing working conditions 
and the maintenance of health 
standards are among the most 
enlightened in the world and 
testify to a union leadership 
which has had other priorities 
apart from the pay packet 
Standards of pay and fringe 
benefits gave the American in- 
dustrial worker a quality of life 
which was the envy of his 
counterparts around the world. 

Yet rarely has trade unionism 
stood in such low public regard 
in the U.S. and rarely have 
trade uninns found it more 
difficult to extend their member- 
ship lists. Twenty years ago 
some 35 per cent, of the Ameri- 
can labour force belonged to 
a trade union: to-day the unions 
organise a little over 20 per 
cent, and the proportion is 
declining every year. - 

The result is that the move- 
ment rests on a few traditional 
and highly important peaks — 
steel, motors, chemicals, coal, 
transport— but has made little' 
effort to descend to the foothills 
to organise in the service 
industries, and in such newly 
developed sectors as electronics. 

Instead of reviving long- 
forgotten organisational skills, 
the movement has increasingly 
come to look for panaceas such 
as the labour law reform legisla- 
tion now before Congress. This 
would, it is true, remove some 
of the Impediments which truly 
hostile employers have been 
able to erect in the face of a 
union recruitment drive but it 
is unlikely to create — as some 
union leaders would wish to 
believe — a new dawn for the 


The Amalgamated Clothing 
and Textile Workers Union, 
which is attempting to organise 
workers employed by the 
recalcitrant J. P. Stevens 
company, privately admits that 
the Bill would give it only 
marginal aid in winning a cam- 
paign which it has christened 
“ Operation Jericho.” Although 
the union’s attempts to remove 
Stevens outside directors have 
recently captured the headlines, 
its dogged attempts to convince 
the rank and file Stevens em- 
ployees of the virtues of union 
membership is the example 
which other unions ought to 

Their failure to do so is high- 
lighted by the fact that unions 
are winning barely half of the 
recognition elections which are 
held every year and although 
many employers use a variety of 
tactics to influence their em- 
ployees’ vote, their efforts can- 
not alone account for the 
unions' poor rate of success. • ' 

Lack of organising ability and 
determination is part of the 
determination is part of the 
explanation and uninspiring 
national leadership is another. 
Discussion on this poiot 
inevitably centres around the 
personality of Mr. George 
Meany. the 83-year-old who was 
re-elected to another two-year 
term as AFL-C20 president last 
December. Mr. Meany’s domina- 
tion of the movement Is un- 
questioned and his access to 
Presidents and key legislators 
second to none. But i is the 
movement's misfortune that he 
should have come to personify' 
many of the attitudes which 
make the' movement. unpopular. 
Moreover, his style of leader- 
ship is not one whicH is calcu- 
lated to appeal to the young 
American worker, male or 

Lastly, Mr. Meany is reluctant 
to acknowledge that there is -& 
membership problem and 
argues that the union move- - 

ment’s influence extends far fear exposure to lawsuits, a loss 
beyond 'its numbers and that of public confidence in business » 
this fact is reflected in the and growing government iriferA 
degree of political influence ferebce in corporate operations.* 1 
which it can bring to bear. An important development^ 

Despite some setbacks last has been the increasing popu- 
year this influence is consider- Iarity of audit ' committees, 
able and the labour law reform which are comprised of outride 
Bill has Administration back- directors and traditionally 
ing — as did the eventual mini- audit a company's financial 
mum wage legislation which records and reports. The Con-;] 
raised the minimum. -wage by ference Board found that some,' 
15 per cent at* the start of this of these committees were 4 
year, with further increases to • breaking hew ground and were 
come. also examining aspects of the 

The higher minimum wage is company’s soda! responsibility 
thought by many economists to and “ethical conduct” Exectr- 
be a positive contribution to • fiyg compensation committees : 
unemployment, which already have ^6 become a popular. . 
looms large -in union caicuia- feature aiming to reassute - . 
tions. Job security is an in- stockholders that management 
creasing preoccupation in, collec- is not overpaying Itself: 
tive bargaining and new con- It ^ ^ dear whether such - 
treci negotiations next year in developments are related to per- 
the motor, steel and other wpt ible changes which have : 
industries are expected to con- lakin g place in' the corn-: 
centrate on the issue as never position of company" boards. 

be £wi .. . One recent study showed that. 

Employers on the other hand the nu mber'of bankers in cor- .. 
are more and more concerned porate boardrooms was decliQ- - 
to control or even take back ^ vllile former Government 
union gains on fringe benefits, officials and academics were on - 
The railways, the coal industry, ^ iflcrease . Outside direetpre’. / 
New York City in its bargaining annua i fees last year amounted 
with public employees, these t0 * IOi g<fo but those who *al on . 
are all examples of employer Boardg coraD anies with sales 
attempts to focus the spotlight exceeding $lbn. took bom 0 
on raising productivity. jjq 

Job security provisions, . 
achieved either through caUec--T'\ <a Kj|f/> • 
live bargaining or legislative. t - 
process, tend to be less extea- • _ . . ... debate 

sive in the U.S. than in. some , of of out- - 
parts of Europe and this is 

sometimes one of the attrac- ^ de directors, .oe _ ^ - 

tions of investing directly imtbe of SIBn. coo- . 

U.S. Many UJS. managers- feel, 

however, rthat their Jobs are no -nominees to screen: 
more secure than those of their ^-v5"^ n did8ties for J. tb® "•* 
employees and a survey by the 

Conference Board, the business network of personal coo-,. ' 

research organisation, indicated r?" *ftcn supplies = : 

la* year that the positions 
many senior corporate execu- 

tives are much more open to^ ^^Another study, this 'time - 
challenge from a company ^ -management consultant . 
Board than ever before The Heidriclc Md struggles, found 
role and performance of com- . end ^ Iast year that chief. : 
pany directors has become a ^ en5p ioyed by the 500. 
popular topic for study and j industrial companies '- 

debate, hot least because of the oa ave rage *261.000 mi- 
series of. scandals over improper. -nd bonuses. Most owned, 

corporate payments at home and mtire tw i per cent of.™ 0 : 

abroad. _ - ' outstanding stock .of 

According to the Conference a iBajosit?--* 0 ™ . 

Board; company Boards are now ^ inttf-their jobs througn; 
demanding, and getting better contacts. Marketing, 

information about;, company background; rc? 81 “ 

affairs and they are challenging shared by these ex^w ;. 

management on major issues tives and although they- 
and even removing top com- Weekfi « holiday 

pany officials when they feel that- J? majority h«* “ ot 
dismissal is justified. This re- longer- than two weeks at a-tw *- , 
Yival ol authority is being etb- for^ore thanfive Y f * xs ’..- Xt r ' 
co u raged by many management# ' . r : i 

and sought by directors: who 


'mancial .Times Wednesday April 5 107S 

ly . 


ir:: « -U •. ^ -'^. s 

*7?? - • ‘ - "' 


» 2“ £ ii ' *> . . • 

n^ ;h ;^=s^{ 

■*» tA h 

TV- *- i, 

y o v .. . • • 

■' .i :; J^i*. 

•2 *:■:•>?'.;■ : ' " . ' 
s *u> ■■■■..; 

fi— Pr COULD ajgne that 

/•w '^/“■■'jrs rt JSt for new technology 
• -7 77 •■■''■■sir k ,*• 5 j 3( >st important influence 
■•*:* ^‘li Ef 'S. the recent rise of orer- 
?rcf 5 0 ;;‘-*Jl ^estment in the U.S. Yet 

quest for new 


"7 - Sv ‘ 0^,'apita] 

7 Two-way flow, there have 

• /• tr.i- ■- -'^fc- e areas of technology 

:•' US. still leads. 

'■ ‘ ^irticuJarly striking ex- 

? ; ’r*'»7|. 9 *■'? t0 be found in the 

r;i '.' 3 V t S ^iics business. Until the 

• :cr.r. e of this decade the 

■-'-y vVj 6tts ®*Ss’ electronics knowhow 

- ’ • iliVi? r: U.S. tended to. come 

*»:! of the overseas invest- 

.... .* °f U.S. multi-nationals. 

Lt-v.!.. ' r,f = e baate Profited from the local 
A. ata _ j^Jns Of nr, IBM, Honey- 

• - id many others. This 

..... " 4;r ‘ of .^T>plemented by licensing 

‘ri "--"c: .n;^ 2I ?ts, continues. But the 

iim Jjhing moves of the past 

— j*.vc been those by Bosch, 
and Britain’s General 
r j-r 3 ,-™ : t0 seek out and buy 
‘ "i a tv n U.S. companies that 
•<. ! s ; m J '--^ring the running in the 
■' . ®s.ectronics field. 

' • ■'■ :r-.m >- 18 a paradox in tins 

-7 It is widely ob- 

■ ■■■?.. K.*-.- .p, fi 5 that the technological 
Jr 1 * -ween the U.S. and the 
,.v . ’^ :i ?the Industrialised world 

: . arrowed progressively 

... V. ; . .^‘l^’orld War U. In nuclear 
. ,. l-.^'^ring, for instance, as a 

• , : . 1 - •'? “of technology in’ large 

7? bought from American 
-• aij=:j es ]jj: e General Electric 

* -= r^stingbouse (or brought^ 
... . .. . : ' : . r -^ipe by them), a Euro- 

- •' >•" ramifacturer like Kraft- 

zzi r?nion can now claim to 
wpc most advanced in the 

• --? ?'• ■ e field of unaniuan en- 
■.:■■■; :*int the Britirfi-Gennan- 

- ultra-centrifuge . .tech- 

s a world - leader. In 
Cittvtfrei Ow&cal engineering, chemi- 
‘ gineering, . pharmaceu- 
ledical science, aircraft; 
ring, power- engineer- 
U.S. is no longer the 
>gical leader it. once 


■levelling process Js one 
(factors that .has . swung 
ince of economic forces 
ur of more- foreign in- 

vestment in the U.S. American “ new product ” research as 
technological . leadership was worthy as any other, 
one of a scries of advantages But when one hrars that 
that gave America its remark- General Motors now spends 
able relatively high standard of something like a half of its 
living in. its post-war heyday! If research money meeting regula- 
rs leadership has now tory controls, one draws the 
dwindled, what incentive can conclusion— not that this is a 
there now be for companies in bad thing, for the controls may 
other countries to buy into well be much needed — but 
American know-how? ... . merely that that much less 
The answer is the ‘‘hunger" money is being spent on new 
referred to earlier. All the in- development to titillate the 
dustrialiscd countries are consumer, 
having to adapt themselves to Ail this leaves the impression 
a slower rate of economic that if European companies are 
growth. It is striking, travelling buying technology in the U.S. 
around Europe, how often one then they are buying a piece d£ 
hears industrialists bemoaning a shrinking cake. The electronic 
the apparent lack of new and skills of the U.S. — propelled 
sophisticated products for. their upwards as ever by the huge 
highly paid workforces to manu- research outlays of .the Penta- 
facture. There are companies in 8° n ^d (much smaller now) 
traditional •' . industries - like ^ASA — are the only readily 
tobacco which have large fhnds identifiable field left, where 
available for diversification but America holds an undisputed 
cannot find the products to in- lea ?- Even her e Japaa is 
vest them in. - . making a determined challenge, 

not so much by mastering the 
^ ■_ , newest techniques for making 

HaCKfO£ • integrated circuits bur by over- 

® , taking the U.S. in the business 

A combination of mounting of incorporating them into 
unemployment, a dauntin g back- finished products, 
log of potential productivity There are other areas of 
gains, and the ease with which leadership— production techno- 
modem production technology logy, space technology and 
ean be., iranrierred- to- Third materials technology — but not 
World- countries has left- the one8 j or W hj C h a generalised 
OECD countries casting around of American supre macy 

for areas where they can ^ be made 
assert their .technological even if by American 

leadership— for products in standards the old blend of 
which they can excel without technological and entre- 
quickly losing the initiative to preneurial flair seems to be 
Third ^Vorld. countries. . -fading, even if the over-the- 

This scramble • for an counter market no longer gets 
apparently stagnant supply of. excited about “technology 
new ideas is not a phenomenon stocks," even if the flow of 
confined to -Europe alone. In- venture capital in the U.S. Is 
dustrfsd scientists 'in the' HE.. not what .it used to be, the fact 
say that the emphasis in cbrpor-_ r e m ai ns that America is a much 
ate research there is tending more fertile breeding ground 
towards low-risk, shorf-tenn pro- for new ideas and new products 
jects aimed at making marginal than any European country, 
improvements to existing - pw ‘ a recent report by Arthur D. 
ducts. Inttle on New Technology 

In quantitative terms the Based Firms (NTBFs) in the 
amount spex^ on R and D by U.)^. and -West Germany 
U.S. industry continues to lamented the- low number of 
climb, but- it is observed that such firms that had been estab- 
ttere is a growing-tendency for- lished in these two countries 
research, money to be directed compared with the number in 
towards antt-pol lution researi& . the UE. It said: “ The number 
Some^f this— that part ouried of NTBFs set up since 1950 and 
out by 'companies manufacturing still in existence is about 200 
anti-pollution 5 jequlpment — is in the UX and probably fewer 

In the Federal Republic. The 
total sales of these firms were 
over £200m. in each country in. 
1975. By contrast, there are' 
several thousand NTBFs in the 

ll. S. and their sales run into; 
billions of dollars.” 

The Little report listed the 1 
extraordinary number of 
American cases in which inven- 
tions by individuals had been 
developed into industries | 
employng thousands. Three; 
technological industries — tele - 1 
vision, jet travel and digital! 
computers — did not exist as 
industries in 1945 but 20 years 
later contributed SISbn. to ine 
VJ.S. GNP and provided almost 

lm. jobs. 

It pointed out that Polaroid 
instant photography was not 
developed by the U.S. photo- 
graphic industry but began with 
venture capital. The Xerox 
copying process was developed 
outside the office equipment 
industry after large corpora- 
tions like IBM and Eastman 
Kodak had turned down thi 
opportunity to exploit Xero- 
graphy patents. 


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The report then listed the 
factors that make America a 
fertile technological seed-bed. 
Tbese include the very large 
domestic market: the availabi- 
lity of private wealth; a fiscal 
framework that encourages 
private risk capital; the over- 
the-counter market for the 
shares in small companies; a 
society which encourages the 
entrepreneur: the entrepre- 
neurial attitude of American 
scientists and large Government 
expenditure in high technology 

These are the differences that 
provide a technological induce- 
ment to Europeans to invest in 
the U.S. The U.S. may no longer 
be the world’s undisputed 
scientific leader but it remains 
well to the fore and above all 
able to invent, develop and 
market new products in a way 
which, if not what it was 20 
years ago. slill makes the 
country a hotbed of new ideas 
for any European company that 
chooses to invest there. 

Nicholas Colchester 

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Midland Bank Untiled, InlciiuiHHul Divnure. b0 OncccfaurctaSirecl, LomJoa bC3P 3BN. Id: 01-606 9944. •Jj 

■s Delivers. 

Foreign banks now 
a vital factor 

Hie woriefs largest 
business school nas a 
ckdy enrolment of millions. 

' . V" ; 'HEY sectors of the U.S. 
\ ‘:'y have been as dearly 

' r--- by foreign direct invest- 

’ . banking. Over the past 
" ■ „ ^rjs foreign banks in the 
.ve been going through, 
unnoticed outside fcankr- 
‘ ' :r :ies. a period of -pheno- 
■ . 'ixpansion. • 

' ■ :'me areas of .the '‘Country 
York in particular — 

- • banks have become . a 

• ", ►rector in major segments 

" “ oj a akin g' market It Ik not 

to hear senior banking 

• ■" tf.-i/es in. this city'coroplain- 
-■ ^s'ut cut-price competition.' 

- • - • . . w'd, were it not that U.S. 

-• already have valuable 

jf the business' In the 
■ . ;!' ! »rs’ own domestic 
.r.*;’; it would ’not "be hard 
. - i* ‘. -^age a protectionist back- 
i far, however, the UE. 
ional bankers, while en- 
[ some of their rivals’ 
i to open branches in 
V|tt' .^ States while they are 

. ■^'T-ed to one, have had their 
-• Tftied by the- concept -of 
" - . • :: - r ^;ity. Any attempt to curb 
• • - .- bank’s operations In the 

vod there have been 
• already — could inspire 

v v a‘ government reactions 
r‘ . y; averse as operations of 
" i The latter have been 

’-sly circumspect in their 
‘ ; -s.f.f-h to Issues raised by the 
; : ^ hanking expansion!-; ' 

* a 

' C .-> r p 
' • -jo >C 

' of the most recent 

•.j. • • ..r -ydevelopments— .including, 

- -I raple, last. month's an- 

''-•sr^nent that Hongkong- and 
, • ; j! , / 1 J a i Bank was interested 
>r .' '^uirins a major equity 
v > -’vi the nation’s 12ifc largest 
. • ■; ; ; ; -eiai - bank. Marine 

!.• : - ' v i\jl — have focussed atleh- 
r .‘- •* ’ 7[!*£: foreign banks; But the 
potion of stakes , in UE.. 
.. . ; !-or of entire US. banks, 

’• . the most obvious signs 

%*•’*> } /,?spansion ; underway. r 
; u ,'. j officials at the Federal- 
^ , V:* - / Ii >:t Board in Washington, 

Mr. - Henry Terrell and Mr. 
Sydney Eei’. have charted the 
growth. Their figures suggest 
that between November 1972, 
when foreign banking, legis- 
lation was -first proposed, and 
November 1977 the standard 
banking assets' of foreign banks 
rose from $18.3bn. to almost 
_$55bn., and by January this 
year had reached $58bn. Stan- 
dard banking assets exclude 
clearing balances and balances 
due to directly related insti- 
tutions. If these items are 
included total -assets would be 
around 980bh. 

■ For the sake of comparison 
the standard banking assets of 
the U.S. banks which report 
weekly to the Federal Reserve 
Board were' in . November last 
. $523bn. The weekly reporting 
banks comprise in the main the 
money ' market banks which 
compete most directly with the 
foreign banks. Their assets 
account for about half the total 
assets of all banks in the UE. 

-More startling is the share of 
;tiie commercial And Industrial 
loan market which foreign banks 
have -gained— in -particular the 
growth of their market share at 
a time when the big UE. banks 
have been stagnating domestic- 
ally m. terms or comtnerciat and 
industrial loans. 

• Thus in. November - 1 last 
foreign banks Jbad $22.5bn. of 
C -and f loans edm pared with 
$12L7bn. fqr the weekly report- 
ing banks. Overall, and more 
significant, the foreign -banks’ 
operations are concentrated in 
New York, HlJnois and Cali- 
forhia. Thus - in New York, 
where • two-thirds of foreign 
bank- assets ’ are situated, the 
foreign banks have around 37 
per cent- of the commercial and 
industrial; loans . of the weekly 
reporting banks; in 'California 
th'e figure is 31 per cent 
‘ Furthermore, as Mr. Terrell 
arid’ Ms. 'Key point out, while 
the weekly reporting U.S. banks 
reported a decline in com- 
mercial and industrial loans 
between November 1974 and: 

November 1977 of $13.7bn. to 
$115.7bn., the foreign banks 
increased their C and I loan 
volume by $2. 9bn. to $20.7bn. 


The most likely — and com- 
monly held-^explanation of this 
trend is that foreign banks were 
ready to "cut the price of their 
loans in order to increase 
volume and were able to fund 
themselves because money 
market -interest rates were well 
below prime rates in the latter 
pan of this period. Thus 
foreign competition, and not 
just money market competition, 
would- appear to have been a 
significant- factor in the break- 
down of the prime rate lending 
structure in the past two years 
or so..- - 

Observers t suggest that in- 
creasingly the foreign banks are 
Invading the territory of their 
U.S. competitors, making in- 
roads into- the U.S. banks' 
customer - base. They are 
apparently using their growing 
base of lending to other foreign 
corporations in the U.S. as a 
springboard for lending to U.S. 
corporations in the top Fortune 
500 list They are also relying 
less on money markets or their 
foreign parents for funds and 
drawing, deposits from retail or 
certificate of deposit markets, 
as do -their *U.S. competitors. 

Some of the major foreign 
invaders, like Barclays Bonk in 
New York, Lloyds Bank of 
California, the six foreign 
owners- who control European- 
Ameriean Bank and Trust, and 
the .Bank, of Tokyo with its 
California First Bank sub- 
sidiary,; have broken into the 
retail banking market, acquir- 
ing U.S./ branches. But others, 
most noticeably the Japanese 
banks, have upgraded agency 
operations, to branches in order 
to be ,able to issue Certificates 
of Deposit in the U.S. to fund 
themselves.. . 

The rapid growth of foreign 
banks over the past five years 

is rooted in a variety of factors. ; 
One of course was the oppor- 
tunity they saw for profitable 
expansion in the U.S. in lend - 1 
ing to other foreign corpora- 
tions. The Japanese banks in 
particular based much of their 
early growth on the financing of 
Japanese corporations in the 
U.S. with funds indlrectlyt at 
least, from their parents in; 

- One reason why the U.S. is 
an attractive location for for-; 
eign banks is the sire of its 
domestic financial markets, 
which provide foreign banks 
with a convenient investment, 
outlet as well as a source of 1 
dollar financing. As Mr. Terrell 
and Ms. Key point out, the at- 
tractiveness of establishing a 
banking facility in the U.S. is 
increased by the role of the 
dollar as a transactions cur - 1 
rency in world trade and in- ' 
vestment The relaxation of 
capital controls in the U.S. in| 
January 1974 increased _the 
desirability of U.S. markets to 
foreign banks since they could 
offer credits to foreign borrow- 
ers free of restraint 

Another factor has been that 
many foreign banks, particu- 
larly if they take the form of 
agency or branch operations; 
can have "certain competitive! 
advantages over their U.S. 
rivals, including freedom to i 
open branches in more than one : 
State, a freedom denied to most 
U.S. banks by the Banking Act 
They can also be free of the 
Gla$s-Steagall Act of 1933 which I 
forces U.S. commercial banks | 
out of the public underwriting; 
of securities. 

Congress has been debating.! 
changes in the law relating to ! 
foreign banks to bring them 
into line with restrictions faced, 
by their U.S. competitors. But 
although legislation passed the 
House in 1976 it- did not get 
into the Senate and is now be- 
ing reviewed. In the meantime 
the foreign hanks continue to 
expand rapidly. 


Every business day,. 
The Wall Street Journals 
pages are opened by mil- 
lions of business-minded 

To many of those 
readers. The Journal is 
far more than America’s 
only national business 

They see The Journal 
as a sensible means of 
continuing business edu- 
cation. And for good . 

-V A ' 

Each issue is edited 
with a deep respect for a 
.readers time. So you 
don’t have to forage for . 
the important facts in a 
story. Reports are concise, 
yet complete. There’s a' . . 
full accounting of the 
relevant details. But writ- 
ten in a tight, even terse' 
style that makes it easier 
to learn, to know; to 
apply the information 
The Journal provides. 

Small wonder, then, 
that there’s a special rela- 
tionship between those 
who write and editThe 
Journal, and those who 
read The Journal Call it, 
if you will, a comfortable 
but conscious mutual 
respect. Or simply a 
shared understanding of 
journalistic mission.- 

1 Till HUlsmMTBM. 1 

Whatever your defi- 
nition, this relationship 
: results in an environment 
" ' in which decision-makers, 
' as well as those who want 
-to become decision- 
• • makers, read, believe and 
. ; act. This environment has 
: high significance for those 
who advertise in The 

Business news and 
business developments 
are explained. Lucidly. 
Understandably- So that 
each story has meaning— 
and usefulness— to all 
Journal readers. 

i '• ‘r'L *\ 
•- v, ■— . Yy2 : ^ 

V* £± 53 .* 


■ In today's fast-chang- 
ing world, shouldn't you 
be readingThe Wall Street 
Journal every business 

And shouldn't you 
be advertising regularly 
to the thoughtful Ameri- 
cans who manage so 
much of the change that 
occurs in today s world? 

The Wall Street 

Because no one is 
too old to learn. 

The Wall Sheet Journal 

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» i »i V’i J V* - - \r ■‘‘•i C * fsS/? I i J i ^ -I 



KnanoaL Times Wednesday April S 197 

ANY FOREIGN company con- 
templating an acquisition in the 
U.S. needs to be^well equipped 
with legal advice. If' the take- 
over victim decides to resist, 
there are numerous legal man- 
oeuvres available which at least 
will prolong the negotiations 
and in some cases will frustrate 
the deal altogether. - It some- 
times appears that the instinc- 
tive response of a U.S. board 
of directors, when faced with a 
tender offer for the company's 
shares, is to appeal to the 
courts and claim some infringe- 
ment of Federal or State laws; 
such devices gain time in which 
a stronger defence can be pre- 
pared and perhaps better terms 

At the same time the would-be 
acquirer has to be prepared for 
the not wholly predictable inter- 
vention of the U.S. antitrust 
authorities, in the form either 
of the Justice Department or 
the Federal Trade Commission 
{CTO. While the objective of 
the antitrust laws is straight- 
forward enough, to preserve and 
promote competition. their 
interpretation by the courts and 
by the enforcement agencies 
leaves plenty of room for doubt 
as to whether a particular 
transaction may or may not run 
into trouble. 

These legal obstacles are, of 
course, just as onerous for a 
domestic as for a foreign 
acquirer; there is no evidence 
that U.S. courts or the antitrust 
agencies discriminate against 
foreign companies — except to 
the extent thar outsiders arc less 
familiar with the American legal 
jungle. Most European acquirers 

are well aware, of the risks and 
are prepared to meet them. 

A classic case was the bid by 
Imetal, the French non-ferrous 
metals group, for. Copperweld 
in 1975. The management of the 
American company resisted the 
bid fiercely. Apart from enlist- 
ing the support of their employ- 
ees and the local community, 
they made Use of every legal 
device available to defeat the 
offer; some States have laws 
which provide for a lengthy re- 
view. period before a tender 
offer can take effect 

Yet the most significant 
aspects of this battle were, first, 
that Imetal, convinced that its 
offer was fair and determined 
to press on with it, - was able 
to deal with the legal challenges 
thrown at it and, secondly, that 
the courts showed no disposition 
to favour the defending manage- 
ment at the expense of share- 
holders. Temporary injunctions 
were granted but as one judge 
remarked, “ In the absence of a 
compelling reason,, we do not 
believe that one’s right to deal 
with his property in the market- 
place should be abridged." 

Imetal was eventually able to 
make peace with Copperweld’s 
management and employees: the 
offer was successful. Sometimes 
a company’s hostile stance can 
•change much more rapidly. 
When Babock and Wilcox bid 
for American Chain and Cable, 
also in 1975, the first offer was 
scornfully . rejected, not only as 
unfair to shareholders, but as 
contrary to the securities and 
antitrust laws; an injunction 
was sought seeking to prohibit 
Babcock from proceeding with 
the offer. Within a few weeks. 

however, after Babcock bad in- 
creased the offer price slightly, 
the merger was agreed. 


A potentially more serious 
problem is antitrust Recent' 
cases have shown that when a 
large foreign company proposes 
to take over, or acquire an in- 
terest in. a .large American 
company in the same or a re- 
lated line of business — even if 
the foreign company has no 
operations of its own within the 
U.S. — the deal may be chal- 

In some cases . the antitrust 
authorities may order the ac- 
quiring company to dispose of 
part of the acquired company, 
so as to preserve competitive 
conditions, or the possibility of 
competitive conditions, in a par- 
ticular sector. Thus Id, which 
acquired Atlas Chemical Indus- 
tries in 1971, agreed to an FTC 
order requiring the divestiture 
of Atlas' explosives business and 
promised not to take over any 
explosives company in the U.S. 
for ten years. In 1969 the mer- 
ger between British Petroleum 
and Standard Oil of Ohio 
(Sohio) was approved by the 
Justice Department on condi- 
tion that the two companies 
hived off some of their retailing 
and distributinon activities. 

A particular source of anxiety 
is the doctrine of potential 
competition. According to this 
theory, there may be large and 
powerful companies which do 
not at present compete in a 
particular sector, but have the 
resources and skills to do so. 
If they decide to enter the 

industry by buying one of the 
leading companies in it, this may 
have serious anti-competitive 
effects; it will tend to raise entry 
barriers, for other -potential 
entrants and it may reinforce 
the already oligopolistic struc- 
ture of that industry. 

Such an acquisition by an 
“actual potential entrant,” 
according to . the theory, must 
be prevented: if the large and 
powerful, outrider wishes to 
enter ti?e industry, it must do 
so either by building its own 
operation de novo or by acquir-. 
mg a toe-hold in the form of 
one of the very small companies: 
in this way it will increase com- 
petition in the industry, not 
reduce It The clearest example 
of tins doctrine as applied to 
U.S. companies was the case 
brought by the FTC against 
Procter and Gamble’s takeover 
of Clorox, the leading company 
in the household liquid bleach 
market; the FTC view in this 
case was upheld by the Supreme 
Court in 1967. 

The doctrine has particular 
relevance for a foreign com- 
pany, especially one with little 
or no experience of U.S. opera- 
tions. While it will sometimes 
make sense for a company to 
start its own manufacturing 
operations from scratch (as. for 
example, Micheiin and Volks- 

wagen ‘ have done), there are 
many cases where the commer- 
cially sensible approach is to 
boy a substantial presence in 
the market by acquiring one of 
the leading companies in the 

That was the argument used 
by BOC International, the 
British industrial gases com- 
pany, when the FTC cha llenged 
its acquisition of a 36, per cent 
stake .in Airco, one of the lead- 
ing U.S. companies in t his 
market The British company 
argued that it made no sense 
to start an operatioh de novo; 
it would cost at least $240ra„ 
the company said, and take ten 
years before It became' viable. 
As for toe-hold acquisitions, 
pone of the small companies in 
the industry provided an ade- 
quate base on which to build. 

Much to the relief of BOC— 
and of other foreign companies 
— the FTC case was dismissed 
by the Appeal Court last year. 
Since the FTC decided not to 
appeal to . the Supreme Court, 
the Appeal Court ruling stands 
as the latest exposition of the 
potential competition doctrine. 

Pointing out that the issue lay 
“at the frontiers of the anti- 
trust laws," the judge argued, 
first that BOC was not in any 
Sense a “ perceived Tor “ recog- 
nised ” potential entrant whose 

presence “in the wings* ex-' Another unresolved case coa- 
erled a pro-competitive effect cerns SKF.; the Swedish ball- 
on- -the market. Secondly;' the .bearing company, where the 
FTC bad provided --nq evidence FTC is seeking the divestiture of 
that BOC, if- forced ta divest Several U.S. companies acquired 
itself of its stake in Airco; wouldby SKF. These cases differfroin 
in ‘the reasonably near ' future that involving BOC in that both 
enter the market in the some SKF and Nerile have beenestab- 
other, pro-competitive way. . lished in the U.S. as manufac- 
While "the FTC did not have turers for . many years, 
to prove ' that entry, by BOC The reaction .of the authori- 
was "imminent," it had to show -ties will normally be influenced 
“some reasonable temporal esti - by the -share, of the maiket 
mate related to thenear future." which t he acquired concetn 
No such ' evidence was provided; , holds. If it is less than 10 per 
the judge concluded that “ra-cent., there is unlikely' to Be 
mote possibilities” could, not be .a problem. If it .is between 3$ 
the basis for deciding that a par- and 20 per -cent, the deal will 
ticular acquisition infringed the be closely scrutinised. Anything 
antitrust laws. . - above 20 per cent ie in the 

XT* danger- zone. ' 

VlCtOrV It is no doubt for this reason 

J - ..that several . European ' com- 

Whether BOC’s. .victory will parties, anxious to expand' their 
impinge on other cases !;affect- -stake in the U1S„ have deliber- 
ing foreign companies remains ately sought acquisitions outside 
to be seen. One outstanding their main lines- of 'business, 
case involves the acquisition by Three recent examines' are 
Nestle, the Swiss-based food- Nestle’s bid for Alcon Labora- 
s tuffs “ group, of- Stauffer, -a tones (pharmaceuticals), Thys- 
frozen foods company. The FTC sen's for Budd (vehicle compon- 
argued that the merger w.oiild . ents) and Unilever's for 
eliminate Nestle as -an actual or National Starch (starch, adhe- 
potential competitor in certain sives and resins), 
markets, that. Sto offer's domin- . The. acquirers are all -laT ge 
ant position in its field would companies whose takeover 
be strengthened and that bar- activities in the U.S. are bound 
tiers to entry would be raised to be of interest to the antitri 
still further. " agencies. But by bidding 

companies in sectors 
they do not at present ■ ’ 
they hope to avoid -, 
complications. -' • " 

Id cases where con, 
Is directly affected, the 
agencies may seek to - ' 
conditions which are' f - ' 
able to the foreign *~ 
This . was apparently .i 
last, year when Bic 
U.S. affiliate of the ■ 
company, sought to act - 
American Safety Sai 
ridiary of Philip Jfor 
might have expected - 
to have welcomed anev' 
into a market .domh -. 

Gillette, but it seems'-' 
agency wished to impos 
restrictions oh 'the ne 
which Bic found too: 
the French company 
prepared to fight then, 
in the courts as BO - 
national had done. 

Antitrust can be 
obstacle for the tore' * 
pany; at the very least - 
dom of action is redr 
these problems have n 
exerted much of a > 
the inflow -of foreign cai 
general effect of tht 'i . 
the antitrust agencies 
aware, is to increase 
tion in the U.S. mark 
reduce it 



The Foreign Trade Experts 

.E. New York 

mi mnrnvmmm 




mmii iissmt 

. *. —i 

Financing of ali kinds of Internationai trade is 
our specialty. BFCE was founded to promote 
it, facilitate it and above ail to finance it 

Our full-service branch in America's financial . 
.■•X^pital plus BFCE’s worldwide network offers 
?4Stmplete trade-financing services such as: 

Short-, medium- and long-term credits 

• Loans in various currencies . 

• Credit .and trade information 
foreign exchange operations , 

*' - • And collections, guarantees, etc. 

—all the specialized serviGesthatsimplifycom- 
p I ^transactions entaired in overseas trade. 

intact us about trade opportunities, 

2-:T problems and pitfalls. 

du commerce 

B.F.C.E. New York 

645 Fifth Avenue 
New York, New York 10022 
Telephone: (212) 826-5960 
Telex: 422 684, International 
12 6853, Domestic 

THE LANDMARK Department 
of Commerce survey into 
foreign investment in the U.S. 
published iu 1976 concluded 
that although total investment 
from overseas was a relatively 
small factor in the American 
economy, it was still of signifi- 
cant size and scope. Over recent 
decades some foreign-owned 
companies have become house- 
hold names in the U.S. and are 
highly respected competitors 
within, their particular indus- 
tries. Shell Oil . is pretty nearly 
as well known as Exxon, Joseph 
E. Seagram as National Dis- 
tillers, and North American 
Philips as General Electric. 

Many of the companies car- 
ried in on the tide of foreign 
investment over the past few 
years will be hoping to vie with 
Shell, Seagram, North American 
Philips and others for a place in 
the top 20 foreign-owned com- 
panies in the U.S. and their 
efforts to do so will have pro- 
found implications for the estab- 
lished domestic companies. 
Experience has shown that the 
immigrant investor often starts 
with a technological lead and a 
financial and managerial com- 
mitment and will to succeed 
which make him a tough com- 
petitor. No matter whether the 
basic motivation for making the 
investment is currency alingn- 
ments, fear of protectionism in 
the U.S. or cheaper labour costs, 
the world's largest economy and 
to enjoy the benefits of a politi- 
cally stable society. 

Lile the immigrants of a 
century ago, the foreign com- 
pany setting up its stall in the 
U.S. is embracing an economic 
system which it may believe is 
in some respects superior to its 
country of origin. Those unwill- 
ing to concede-superiority in the 
U.S. come, nevertheless, because 
they are convinced that locating 
themselves in the American 
market will offer more oppor- 
tunities and possibly fewer long- 
term risks than trying to sell 
into the market from outside. . 

The list of foreign companies 
which have invested in the U.S. 
over the past couple of years 
covers virtually the entire 
spectrum of manufacturing and 
financial services from 
chemicals to cars, from real 
estate to rubb'er and from 

Volkswagen's new plant in Pennsylvania to produce its Rabbit car is the first by a 
foreign motor manufacturer to be set up in the US. and its impact on the domestic 
industry will be followed with interest. 

pharmaceuticals to fuel injec- pliers of manufactured com-, customers, which . include 
tion. Many are expanding or ponents. The predicted expan- General Motors, Ford and John 

impact of direct forea; : . 
ment on the motor Indr ' , 
still be in its formal 
the consumm: electr " ' 
dustry— and parti ml 
. television sector-bas 
ing the -lash for seyeia ~ • 
■ Here the "investir 
been . predominantly • . . J 
although Philips also ■ 
Magnavox, one- of tb 
U.S. consumer elegrd 
panies. Japanese tnaai " 
now "have a 25 per eg -* _ 
share, and it is stai r ‘ ; 
' In 1974 imports 0& J 
factored in Japan ^ 

* a relatively modest'!?? L ' 
of the market, buf thJ 
tion had already , g 
stricted the U.S. mani 
scope for raising prit 
General Electric, 
Admiral were 

manufacturing fadl 
Mexico and the Far 
as to cat labour cost 
At the same 
panies decided 
towel and Matsushita 
were able to purchase 
pressed televiridn’- 
assets of Motorola and 
Electronics in 1974 . 

raising prit = 

2 FW rjp 

offshore cJL U V. 
fad] v 

le Fai 

it cosi. a | 

Sff til 

Sony had already 

uuu. IUO-UJ cu« tiyaimiufi u* P'dicuu. j.*ic jiicutucu ucucioi muiul-O, I 1 M u U1U 4IUUU jccamhlir Tllant in Cal 

augmenting an existing invest- sion . in demand for diesel Deere, and is expecting ' UJS. P _ 

mem and the fate of some engines has prompted Britain’s sales to reach 6250m. in 1980. y' 1 ’ sa 

initiatives is being closely Lucas Industries to set up a Another vehicle-related area nfSfS 

watched by rival*. s»aU a^embly plant for diesel ^S ctoW wep ^, “S 

Thus the future shape of the 'S?" TiT'" 1 i">Mot of direct foreign invest- . A dminis tration Was 

U.S. motor industry, for 71™, ment ow the next few years see k because of the 

example, could be said to bang ^ h °J° e °f * flection ^ jjjg tyre industry. An « homi> distressed tad - 
on the success of Volkswagen’s in the shape of B * 0 ?- the jms ' 

(VW) new assembly plant in J^ est Germany s Robert Bosch Michetin group is 

New Stanton. Pennsylvania. Corporation. Bosch offers a to have spe^ around 

This $300m. facility will be the “““Pjf of market 515^- b y the raiddlel980s build- 5^ 

first car production plant to leader deciding that its major ^ eight t0 ten manufacturing S 6 ? agre *f. ^ 
be set up by a major foreign P^duct .could have nu real U.S. exp ?5 tS 

rival to the domestic industry future in the U.S. without. l-73m. umts a year ■: 

and the probability is that it investment. ' i ^ ch I el,n s Diant began y&ars . This is conside 

will be followed by Japanese ■ Bosch’s strategy, which may producing passenger car “tyres than.the 2.9m. sold itt . 
and possibly othe/ European ^ path • eventuaUy fol- S °^^^ l J^iS' it reinalns to be seen! 

manufacturers. Financed*^ by lowed b y Lucas - was based on 19f5 an d although the company rea ] protection fte .i, 

Eurobond issues and loans from °P enin S a relatively modest fays very little m public about ajj 0rd5 given the-, 

two Pennsylvania pension funds, assembly plant in South rta P ] ans the scale of projected p rBsencp in the U^. 

VWs plant opens next week Carolina which originally put investment indicates a very ^ latter will' & ^ 

and will have the capacity next together parts manufactured in serious assault on tje UB. tyre strengthened this. Jt; . 

year to build upwards of 200,000 Germany. However, the num- market. ^.Renowned for its manuf acturing t ... 

of the German company's best- ber of domestically produced powers nf tecunoiogiMl ^ innova- -{jgtween General £3e 

selling " Rabbit ” small car. P arts bas been steadily tion, Micheiin sapplH^ jaajai pf; tach] - and directinv* ‘ 

increased as the company grew tyres which accounted for about facilities L 

Cnnno70r) t0 know its market and trained 9 Per cent of the Ford Motor bisi]i d Toshiba. !.. 

J(?Uct/<cU a labour force to meet its Company's requirement agreement with Japan 

_ P nrn _ requirements. By the end of year- Rival American manufac- *** proportioi. ■ 

last year the Charleston factory turers cheerfully acknowledge • 

. For international 

banking think UBB 



Banking. has been our business 

since 1780 


With group assets of DM 64 billion 
we are not too big to be flexible 


Branches under the name UNION BANK 
OF BAVARIA in New York, Chicago and 
Grand Cayman, as well as an agency 
in Los Angeles. A new Branch now in 

Representative Offices: 

London, Paris, Caracas, Johannesburg, 
Rio de Janeiro, Tehran. 

Euromarket subsidiary: 


(Bayerische Verefnsbank) 
New Yoric Branch 

430 Park Avenue 
New York, N. Y. 15022 
Telephone: (212) 758-4664 
Telex: 66527 ubb uw 

Head Office: Munich 
International Division - 
Kardinal-Faulhaber-Strasse 1 
D-8000 Munchen 2 
Telephone: (089) 2132*1 
Telex: 523321 bvmd 



i U Sc s r pl ^“ J S ^s P d t 0 f V H« h-^-d^'-Sr^nSS. that Micheiin nwy snatqh.lQ per ■ 

frSS uI ^T manufacturer cl0re tn 70 -P er cent - 01 its fuel ^ “ i. lir 

^erian Mat^wSsJ marto evjulpviseot will soon tte ^eir competitive ete 

share has fallen from 4 per be domestically produced. Mean- ™ ® at toe expense or onlT putia j]y United 
cent, to about 2 per cent. o?er ^Ue, Bosch has benefited faom snmUer U-S ^ 

the past four years, partly be- grater proximity to its U.S. Meanwhile, although 
cause of sharp competition from 
the Rabbit and other imported 


small cars. VW sold . nearly 
165,000 Rabbits in the U.S. last 
year, but its margins were 
severely squeezed by the dollar’s 
depreciation against the 

Fear of future currency align- 
ments was probably the greatest 
single factor prompting VWs 
decision to invest directly in 
the U.S., and wi th tbe yen 
hovering at around 22.5 to the 
dollar, the major Japanese car 
producers are under similar 
pressure. Their experience of 
manufacturing offshore is some- 
what more Umited than VW's, 
but it may only be a matter of 
time before sales demand and 
curency appreciation force them 
to take a similar route. Honda’s 
decision a smaM motor- 
cycle assembly plant in: Ohio 
this year may have considerable 
long-term significance. 

The construction of more 
foreign-owned car plants in the 
world's largest single vehicle 
market will give further 
impetus to direct investment 
by the motor industry's sup- 

'Mpmb nr Paryflf. i-itnA -Rgrlmrifln 

r ■ v 

providing institutional investors with 
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... Geneva 'Ifet (022)285040 



Fi^ndal T imes.. Wednesday April 5 1978 



T^-^oa, * 


ECONOMIC changes in The over-valuation of the 
a ^~.W ^fconship between the dollar in the 1960s, relative tu 

1 and other advanced indus-. the currencies of the major in- 
“*-■ V^.W 5 -- n ations have been an duatrial nations, was. a growing 

7. ^ factor behind the incentive for countries like 

! u ^. . *’■ direct investment into Germany and Japan to base 

'C.S *‘;f. ^2rl ; V -S, this decade. their penetration -of U.S. 

have not necessarily markets on expanding exports. 

‘“•T- -^rmiolng The overvaluation . of the 

?-■’ ■■...£*' compa “ y dollar “ this period did. how- 

-•• J'‘ %!jaL S T?i^- a V - ® - ; o^ratmg ever, prepare the ground for 

"i r «^SSLtjS ea8101 ^ t V Bv .!2J“ ve Tbe S’* 1 *® tii direct investment 
v . ■ v -r:...^ , *® Ccted orally the strengths in this decade. It enabled many 

- - J ’• hidiVi- corporations outside the UK to 

V> C- .• ^ buUd »P export, and 

v, ':-'s^" y market experience which was 
- . ' • -a, “J* am ^ I ~ later to become a 'platform for 

' n .“. V^ h: : C J22®- of the P®®P Ie direct investment and the out- 

! •;■ : been managing them, flow of dollars from. the. U.S. at 

- C . IT "■ Mr: A A m J 1 • T§ « tiwia /•tMAlira ffAi*c.«vt- 

j 17- 

L r./~ 


a time when foreign govern- 
ments were committed lo main- 

■>: I Tie latter- are important zoning Axed exchange rates, 
.■‘".irji, »ecause there is little doubt helped provide the monetary 
Sr - < 0 . ®s -hat — at least in the case of stimulus to their economies 

: -=- T‘Zr.\ : European investors- who have which contributed to their in 

- -T: c; s " flayed such a significant role some cases inflationary growth. 

. ; management- attitudes towards Tbis growth, however, fostered 
K, r -;ir.--y ^Jlfciolitical and economic develop* the expansion of . many- busi- 
n - 0 .r 2 ;- ti.nents in their home countries nesses in industrial Europe- and 
■** Relative. to attitudes in the US Ja P*n l in 5011,6 cases through 
.^ef.wve been important factors iii mergers) to a size- which 
investment decisions. enabled them to be able to feel 

^ A common view is that much ready. _to break into the U.S. 
I s - Li joreign direct investment ■ into bnu*oL 
~"“ lt - he U.S. in the past five years Since the beginning of the 
' 7 Gent ' 311 be explained by relative 1970s, with The breakdown in 

™hanges in wage and exchange 1971 of the Bretton Woods 
ates. It is argued that the system, the at first steady and 
J.S. has gone from being a high more recently Accelerating 
rost economy in the early decline in the value of die 
960s. in terms of both wages . dollar against other' major cur- 
md dollar values of assets, to reticles of advanced industrial 
* J leing a relatively cheaper place, nations has tended to shift the 

I f *T* n which to operate. balance of advantage more in 

II I While this is generally" true, favour of direct investment in 

•* V here are exceptions which the U.S. for foreign eorpora- 

•uggest that these factow are seeking to do business, 
lot the only key elements by The -intermittent weakness of 

my means, and that the expla- the U.S. stock market has also 
relation of the recent trend in helped jo. make, acquisitions in 

appreciation against the dollar 
since the beginning of the 
decade— on the contrary. But 
this has not stopped U.K. com- 
panies investing heavily in the 
U.S. Indeed, between 1974 and 
1976, U.K companies were the 
must active foreign direct inves- 
tors in mergers and acquisitions, 
and were again among the most 
active last year. The U.K. ex- 
perience suggests factors other 
than broad international econo- 
mic trends are important in 
explaining the scale of direct 
investment into the U.S. 

These factors, while not inde- 
pendent of broad economic 
trends, were likely to relate in 
the particular positions of Indi- 
vidual corporations. . 

It is probably no accident that 
the latest surge in direct ‘in- 
vestment into the U.S. began in 
early 1973 — a period of incrrvs- 
ingly rapid and in some areas 
speculative investment by U.S. 
businesses around the world. 
Then it would seem many cor- 
porations outside the U.S.. which 
had grown to a size close to 
some of their main U.S. competi- 
tors. began tu feel that the time 
was ripe and their resources 
adequate to enable them to ex- 
pand and diversify into the 
largest and apparently most 
stable capitalist economy. 

When such companies have 
looked at the U.S. market, how- 
ever, they will have seen that 
whatever the broad international 
trends, their own decisions on 
where to allocate in the U.S. or 
on whether to expand by acquisi- 
tion or joint venture or to go 
it alone with a new plant will 
have presented very complex 


.....Jnovements in wages over the diurtxialitied ; nations have been 
ten years in the U.S. haveimpdrtantf actors in investment 

'J' "lot been accompanied by -com- decisions - by foreign .corpora- 

:a -“Densating gatns in productivity, tioiis. ';'Buf .'they. have not 
^revith the. result that unit costs necessarily been- decisive. 

t iave been rising and whatever . V the case , of Volkswagen’s 

iie **elative attractions' the UK .deeisibn to locate a manufactur- 
- developed may be in ■. ffie^ tog jdant in the US, no doubt 
process of being • eroded, ri^ng-pnit costs in Germany and 
• r i :i -^ Jthough given the sharp tke aj^teciatibn of the Deutsfthe- 

- r- ;■ ..-lecline of the /dollar, not marlr compared with dollar 
Eliminated, so far as decisions have'.been . important, pethiips 

For companies making their 
first foray into the U.S. in parti- 
cular, an acquisition has often 
been the most attractive, and in 
the past few years, the most 
popular route. It oilers the in- 
vestor the advantage of being 
able to evaluate opportunities 
through assessing a going con- 
cern as well as providing ready 
made management 
On the other hand, in spite 
of depressed stock markets 
acquisitions have not necessar- 
ily offered a cheap way into the 
U.S., especially: over the past 
two years- Unilever’s offer price 
for National Starch and Chemi- 

cal of $485 m. for all the equity 
represented a premium of 64 
per cent, uver the closing price 
before the move was announced 
11 also represented an all time 
high for National Starch shares 
and a multiple of 17 times earn- 

Bayer of Germany paid 16 
times earnings to acquire Miles 
Laboratories when it offered 
547 a share Tor the company 
compared with a pre-bid price 
uf $25 a share. Nestle paid 24 
times earnings for another phar 
maceutical company with its 
$42 a share offer — the pre-bid 
price was around 520 a share 
And Cadbury Schweppes has 
offered 17.6 times earnings for 
a confectionery manufacturer 
Peter Pauld. in a $5Sm. bid. 

One explanation fnr the high 
premiums being paid in acqui 
sitions is that there is a merger 
boom under way amongst U.S 
companies. Business manage- 
ment, faced with the altcrna 
tives of building new plant or 
developing new operations, has 
been opting instead for acqui 
sitions, partly <»n the grounds 
that it is cheaper to buy than 
to build. Thus, while share 
prices arc depressed, the take 
over market is not. 

Many factors have contri 
buted to the surge in foreign 
direct investment in the U.S 
above historic levels, and there 
are many predictions that 
growth will continue in pan be- 
cause almost half of the foreign 
expansion in the country is 
financed from the retained earn- 
ings of the businesses already 

On the other hand, if the U.5 
were lo go into a sharp and 
inflationary recession as same 
fear, and if this was uccom 
panied by slow growth in the 
economies of the companies 
which have been leading the 
charge into the U.S., then it 
would be only' reasonable to 
expect that as in 1975, the pace 
would slow again, since foreign 
direct investment, like domestic 
capital spending, Is cyclical. On 
the other hand, the giant multi- 
national businesses outside the 
UK are now much more able 
to break into UK markets and 
compete directly with rivals 
.who, if not challenged, will'per- 
haps begin to threaten them on 
their own markets. 

' S.F. 


.* _ " - /-i . ; 

i “ '■/* /EiViTHIN THE last decade. 

• • - '■ • • japan's outstanding direct ■ in- 
’ * ;;: T^/estment in the U.S. has soared 
r ■. .? •" "'rora a few 1 hundred million 

^--loUars to well over. $4bn.. and . 

;•> ? i-"‘ : 't seems safe to predict a fairly 
-’apid increase in the future... - 
.. - Japanese-operated factories in - 

. ' v : ;.he U.S. are already tuming^ouf 

- ..•? '■•'" products ranging from soy 

auce to television sets, and a 
: ' :, ecent survey by Japan’s 
, ^ . j - Ministry of ••International Trade 
“ ! 7-^ Li >md Industry found that the 
ranked first ajnong poten- 
- ” * iwal areas of future- investment 

- - ; ;.'E Cieing eyed by Japanese corpora- 

• ,r ’.EE Tons. , 

x " Japan’s overseas investment 
Strategy is to. a considerable 
• j i-xtent defensive in character. 

- : : 1 the 519.4b n. in direct oven 

- j ‘. V^-eas investment outstandmg as B jmji a r " advantages, and will Matsushita first took it over — 

March- 31, dose to 60 P er surely also see a rise in Quasar now expects to show a 
■ l ent, was in developing coun* Japanese investment But some profit this year. 

. 7 ■> ries. where the primary aim has Japanese businessmen make- .Other Japanese firms have 

-ften been — and continues to be uttle secret of the fact that they demonstrated that their methods 

The highly successjul Datsim/Nissan 240Z sports car. 

ensure feel their investment presence can be successful in the U.S. One 

material Caltziougn, or j n manil f ac t^ ir: i| 1 g jg “not realiy is. the YKK Zipper Company, 

- bourse, another aim n«s wanted” in some European with a plant in Georgia (it also . 

'E* ,ee . n set m anuiac turin ^ roiin tries, that European busi- has others around the globe, in- \jIJIIltS 

:: acilities to take advantage or ness att itudes are too conserva- eluding a successful venture In 

T'i ’ vheap labour/. • jive, and labour relations too. Britain), and Kikkoinan Shoyu 

E In the advanced industriahsed Company, which managed to 

\... Rations, notably the U.S., Shyest- That feeling could have been overcome loud hostility lo its 
■ aent has gone heavily .into strengthened by Hitachi Ltd.’s soy sauce plant in rural 

corporate ladder. One obstacle 
here is the Japanese system of 
seniority based on age, which 
clearly does not export well to 
the U.S. But even more impor- 
tant, the language problem and 
the Inability to communicate 
easily with the bosses back in 
the Japanese head office, often 
limit career opportunities for 
foreigners with Japanese com- 

Some Japanese firms say they 
would like to instal local 
nationals as presidents and top 
executives to run their overseas 
operations, but have difficulty 
finding the right men. The prob- 
lem could become pressing in 
the UK in view of the tough 
legal measures which can be in- 
voked against discrimination in 

Japanese vehicle manufac- 
turers look sure to be promi- 
nent among the Japanese groups 
which in future will be testing 
the exportability of their man- 
agement methods — and not 
just of their products. 



the evidence' seems 

- ^ •- the basic Japanese 

Capital but of securing fafleiac to ’persuade trade unions management philosophy of in- 

xpanding markets for exports ^ venture would not destroy votvipg the employee in .all 

f finished .goods. - ^ ■ ; y more’ jobs than it would create, aspects of corporate life, and of 

- As the” recent bue "and cry . working to ensure that he feels 

ver Japan’s enormous trade VPTltlirPQ he “belongs,” is a highly export- 

urpliises- -with the U.S; and ■ y 1 ■ IU1 V ■ able one (although some com- 

lurope have clearly shown, this 1 Japanese companies which parties have had to realise that 
trategy is outliving its 'effeo- have led the. way with manu- company loyalty can hardly be 
Iveness. In future, as far as the factoring ventures in the U.S. .instilled into foreign employees 
dvanced countries are con- include' Sony Corporation, with as it js In Japanese. Sometimes 
emed, Japanese defensiveness ro i 0 ur television plant in they, found that loyalty could 
s likely to take the form of San ■ Diego; add - Matsushita only be bought through in- 
lore and. more, investment, jp* Electric, : ^ . which bought the ..creased pay and other incentives 
manufacturing . facilities, ' de--Q uasar colour television divi- which- might, well not have been 
f -Agned to head off jarotfifttionisip, . Motorola '.about four, necessary in Japan). 

IfHy creating- jobs rather, than 3 g 0; In many Japanese-owned 

B Lr'estroying them through Sony had to overcome some plants the willingness of 
Jr sports. -major obsfades, indudihg union management to spend time on 

Much of this investment can troublei on .the way to making the shop floor has won the 
e expected to be made in the Kan Uiego plant a successful respect of workers previously 
•ili j_s. Production- costs are no operation. For Matsushita, the used, to rather more elitist 
linger an . obstacle . in most tjuasar • workforce was very managerial attitudes. None the 
ectors, following the surge; in attractive, since it "was organ- less, little attempt has yet been 
apanese .labour, costs, -during -ised—riither as labour often* is . made to export fundamental 
I he past ten. years, . apd the- Jp Japan— into a company-based Japanese company concepts such 
'uge appreciation -of the yen— uirion,. not linked with industry- as unwritten lifetime employ- 
a the present ‘level of ’around \rfde union, activity. (Non- ment guarantees and “decision 
20 per dollar from 360 in 1971. yiuon shops are clearly some- by consensus.’ 1 
‘urthermbre, " the UK offers ' filing which Japanese companies A major problem, which will 
-iniitirsd ctahlli'iv. a huge and* —fearful of the dout of the big grow with an increased 

Europe can sometimes offer company was floundering when ees on the higher rungs of the 

Late last year Honda Motor 
announced its decision to build 
a motor-cycle plant in Ohio, 
which is expected to be com- 
pleted by early next year; the 
company Is also considering ex- 
panding the plant later for car 
production. Behind it are the 
two Japanese vehicle giants — 
Toyota and Nissan — which are 
generally expected to take the 
plunge into U.S. manufacturing 
in the not-too-distant future. 

According to preliminary 
estimates by the Finance 
Ministry, Japan’s overall, direct 
investment overseas . in fiscal 
1977 which ended - on March 31 
fell to between $2.5bn. and $3bn. 
from $3.46bn. in fiscal 1976, 
and from the record $3.49bn. 
in fiscal 1973 (after which there 
was a plunge because of the 
impact of the oil crisis). 

Last year's fall. Ministry 
officials say, reflected reluctance 
by Japanese companies to invest 
in either resource-related or 
manufacturing projects at a 
time when many of them are 
suffering from excess capacity 
and world economic, conditions 
are so uncertain. . 

An improvement in the 
economic environment in Japan 
and in the rest of the world 
looks sure to bring with it a 
strong upsurge in Japanese 
overseas investment— with . the. 
U,S. a major recipient country. 

By a Correspondent 


What’s American about 
Babcock&Wlldcx, Limited? 

Through Babcock International Inc. it owns substantial interests in 
North America, contributing nearly thirty per cent of G roup profits, 

American Chain & Cable Co. Inc- - 
a New England-based corporation serving key industries from 20 
manufacturing facilities in a dozen American States, and some 200 sales 
outlets nationwide .... 

a leading manufacturer of chain and wire products including industrial 
and automotive cable controls, unit material handling installations, 
process control equipment, cranes and hoists and many other products. 

Huwood-lrwin Co. - 

based in Pittsburgh, Pa., specialising in mining machinery, and well- 
placed to take advantage of an expansion in the US coal industry. 

Babcock Contractors Inc. - 

also based in Pittsburgh, Pa., and providing engineering, contracting and 
consulting services to the coal, steel and water treatment industries. 

These investments have increased the stability, diversity and growth - 
of an already international Group. 

And Babcock & Wilcox Limited still regards America as the land 
of opportunrty! 

That's what's American about Babcock & Wilcox, Limited. 

Babcock & Wilcox Limited 
Cleveland House, 

St James's Square, London, SW1 Y 4LN. 

Babcock International Inc. 
1616 North Fort Myer Drive, 
Arlington, Virginia 22209 USA. 

A report from Bank off America, 

Learn why so many companies 
around the world 
are setting into business 
in Ihe United States. 

Many European and Asian 
companies have learned they can 
expand successfurtywith equity 
in y e s tiw cnt smtheUnitedftatgi. 
Our report explains why. 

In the 1950!s LLS. companies capi- 
talized on the'economic advantages 
of opening production facilities 
outside the CJ.S. Today, non-U.S. 
companies are finding similar ad- 
vantages in LLS. equity investments. 

Our 28 page report; Direct 
Investment in file United States 
from Abroad, cites eight factors that 
are encouraging an increasing 
number of companies to establish 
. their own production facilities in 
the United States. 

An in-depth study. 

The report takes a look at who is 
investing in the (IS., where, and 
In which industries. It includes 
mention of specific companies that 

have recently acquired or ’*'• 

expanded their (IS. operations. companies with information that 

The report notes i nvestment 
opportunities in several specific 
industries: paper products, medical 
equipment and supplies, computer 
and office equipment, cosmetics, 
soap, drugs, day, stone, cement, 
machinery, chemicals. 

There’s also a five- t-t 

year economic outlook 
in the report that 
describes and identifies 
some of the underlying 
reasons why it is be- . 

Jieved the United States 
should .continue to .be 
attractive to nonrCIS. 

will be of assistance. If Direct 
Investment in the United States 
from Abroad is a subject of interest 
to you, send for your copy today. 
There's no cost or obligation, 
of course. 

j Bank of America 
Attn.: John Hill bery 
1 25 Cannon Street 
j London EC4P4HN, England 
1 l*m interested in your report Please send me a copy 


Send for your copy. 

Bank. of America 
welcomes the oppor- 
tunity to provide . . 




J.V .ViJ, ««!. 


finance in THE U.S. X 

Financial" Times Wednesday April 5 19^ 

On these two pages are profiles of a 
selection of leading companies from Europe 
and Japan which have established a significant 
businessjpresence in the U.S. 


has been long and profitable 
for Japan’s largest electrical 
appliance and electronics manu- 
facturer. MECA — the Mat- 
sushita Electronic Corporation 
of America — is the new Jersey- 
based holding company trf 
Matsushita’s growing American 
sales and manufacturing base. 

The Japanese company's 
presence in the U.S. dales back 
to 1933 when it opened a 
branch office in New York, but 
MECA was created to market 
the company’s Panasonic brand 
products in 1959. It became the 
Japanese giant’s first overseas 
subsidiary. By 1977 Matsushita 
had set Up 30 manufacturing 
companies and 24 sales com- 
panies abroad. 

In the process the group 
managed to boost sales in the 
American market to over $lbn. 
last year. About 40 per cent, 
of the total is ascribed to sales 
from U.S. production facilities 
and the other 60 per cent, to 
exports from Japanese factories 
which are still channelled 
through MECA to the U.S. 
market. MECA, moreover, has 
grown to bo the largest 
Japanese employer in the U.S. 
with a payroll of about 5.000 
compared with only 2,000 five 
years ago. 

The cornerstone of MECA's 
growth has been its mushroom- 
ing sales of Panasonic. National, 
and Technics consumer goods. 
But the surge in the mid-1970s 
is a direct result of the Osaka- 
based company's overseas 
strategy mapped out in 1971-72 

bfethL V ■■ j 

‘ i 

■' i. I 

• • £:■ 't~s 


V £■■■' ■ i 

* ■ •' r* 

•*f ' . /A>t -JC -.t? 

l'.‘ •' . j.’.AW'j' "4 


* •*. n 

... .. » i 

Mr. Akira Harada, president of MECA. 

to bolster U.S. sales by produc- 
ing colour television sets at an 
American factory. Convinced 
that the American market was 
already overcrowded with 
could not hope to compete gn 
new TV technology with the 
likes of Zenith and RCA. Matsu- 
shita took on a new president 
for MECA, Mr. Akira Harada. 
and gave him the task of buying 
into a production facility. 

Negotiations Jed to an agree- 
ment in 1974 whereby Matsu- 

shita bought the loss-making 
Quasar tele visi on division of 
Motorola lock, stock and barrel 
(at a still-undisclosed price). 
Quasar Electronics Company 
was created as a subsidiary' of 
MECA Itself in 1974, and Mr. 
Harada faced two tasks: first, 
to ratiohalise the old Quasar 
division, which was overstaffed 
and not using the latest auto- 
mated technology (in particular 
for welding TV circuitry), and 
second, to bolster MECA’s 

ANY DAY now the most sym- 
bolic piece of direct West 
German investment in the U.S. 
will begin production. Volks- 
wagen will officially open its 
car manufacturing plant in East 
Huntingdon, Pennsylvania. By 
September 1978 the 8250m. 
facility .will be turning out 400 
VW Golfs (known locally as the 
Babbit) per day and production 
thereafter will be doubled to 

distribution net-work in the U.S. <*?? ££ aei 

SSSSOTS5E &»£.£££ 5 

ssmaisrsrjss °££ 

3 2-35SS 

re w^k i9 ioo? e sss s££i. ss* s. sss 

able rise of the Deutscfaemark 
According to officials in Osaka t paid to that situation, 

the Quasar subsidiary registered w hag tQ mMnufaix:tnxe 

? 0 5 " aU but timely profit on ite in ^ ^ jt t0 remaia 

1977 operations, and MECA Drice cmnoeHtiYe 
anticipates a much greater re- P vwTS to continue' to 
turn m !978 as the Quasar ^ w ^ ^ vaIue) of 
brand (it is hoped) takes the its ^ bits in WeBt Germany— 
place of some Panasonic direct ^ -nujor mechanical compo- 
exports from Japan which are neDts ^ engln ^ transmission 
subject to the orderly market- and storing. T& e body will be 
ing agreement. with the U.S. of built almost entirely out of 
last summer. American-made parts and the 

Matsushita television sets, company has bought a metal 
made either in the U.S. or stamping plant in Carolina to 
Japan, last year were the third help with the supply of sheet 
largest in U.S. sales behind metal components. 

Zenith and RCA, and the com- 
pany .hopes to maintain that 
position despite export controls. 

But the company is also busy 
starting up sales of its VHS- 
type video tape recorders 

(VTRs) in tiie U.S. where it 0F . AI'L the companies 
faces strong competition from w bich have invested in North 
Sony with its Betamax-type America during recent years, 
YTRs. Hanson Trust has arguably been 

irKv-’A*.. ___ the most aggressive and the 

MECA s answer is a senes of . ... . . 

1 ■ • j (nFinifiei most succ&ssful to date. Just 

licensing and OEM (original f ^ . ^tlal 

equipment manufacturing) inve5tment ^ e £ i 3 .7m.pur- 

Mr. Toni Schtjmcher, chairman Volkswagen . 

Apart from the economics of 
manufacturing — where ft. is the 
productivity and longer work- 
ing hours of the American 
worker, rather than his hourly- 
wage, that tip the scales ' in 
favour of the U.S. — the manage- 

ment of VW in Wolfsburg see 
other attractions in local manu- 
facture. It is conscious of the 
rising danger of protectionism. 
It will benefit from the flexi- 
bility that comes from being 
- close to the market VW execu- 

tives explain that it took 
three months for the j' 
cars from Germany imaV 
to react to changes in - 
conditions there. 

Volkswagen sold - • 
Babbits in the U.S. in il 
hopes to seU at least' tb 
number again this^yg 
additionally sold 100,0(5 
models, production of w 
(he . U.S. is not at ;• 
envisaged. The company - 
to sell the entire otitpo- 
U.S. plant within the~St 

the time production has: 
200,000 units per year.- ■ 

’ VW was vigorously- Vt 
State authorities.. It b 
plant with the help of a. 1 
840m. loan bearing inta - 
the first 20 years of just: 
cent. This was only 0 i- 
series of financial indiu 
with which Penm . 
swayed the VW decisioj. 

."'The recent fall of thr* 
has underlined the con 
of VWs decision to butt 
U.S. It remains to f ■ 
whether even U5.-teetff - 
will be able to survJ 
strong Japanese and .. 
competition that ha 
developed in the ■ A - 
small car business. 

V Nicholas Cole 


T n dudiEf^R?t cta “ ° f a “i™ 1 

Magnavox and Syivania. Mat- 

feeds business — Hanson has an 

thi» °P era tion with annual sales run- 
cover me ning at over j lblu ^ over . 

sushita hopes to 
martatwickly enough with its ten 

if? 4!2??eSL I.!?!™ completely transformed. 

U.S. allies just’ as Sony has done 

Thus its U.S. interests repre- 

Matsushita workers at morning assembly. 

in ■ts ti-iH.P VTR wreement with d abM 0{ 

Zenith Sun Uar josUtng is going £87nli of sbart , hoMcrs . funds m 
on in Europe, end Matsustate is ^ , „ t balsnce sbeet Nortb 
counting on .is supplies to U.S. Afflerics KCOunte d for £I5m. of 
companies (for sale under UA y,,. , s Ba tQta] 

brands) to bolster demand for la5t y F 
MECA’s own Panasonic label in Tbis pTop0 rtion is set to rise 
a growing world market. further. Its most recent pro- 
It is a so-far untested market- posa i, a merger between its 
ing strategy, but one which, like Hydgrade Food subsidiary and 
the Quasar acquisition, will prob- the publicly listed Bluebird Inc. 
ably prove correct— and without —which would have given it a 
having to wait three years to quoted vehicle- on the New York 
turn In a profit MECA is pur- stock Exchange— has fallen 
suing a different strategy for through after several months of 
sales of its facsimile communica- negotiation. But Hanson is now 
tions equipment which will go well on the way to completing 
on sale for the first time in 1978 the outright purchase of 
exclusively under the Panafax another publicly quoted foods 
label. group for $2 9m. 

Douglas Ramsey 10 its earl y stages Hanson’s 
° J U.S. expansion was a high risk 

affair. Its acquisitions were in 
cyclical industries, and were 
financed with dollar borrowings 
at a time when sterling was fall- 
ing rapidly. If one of them had 

r <■ *v , •••••. 

•. '-f 

y.:,vk /,*•,. '^iaa 

Sir James Hanson, chairman, Hanson Trust . 

- J -7 

Profits up 49 percent. AU major subsidiaries set 
new earnings records. ' 





- 1 fs 

1 1 1 1 

- US 




- 100 








1 1 1 1 



6 2 , 

















60 It' LBS 1 6ilftA|»Sl66L6~l<»lW|?0|T»l73|T3|T4 

■ Our consumer lending company, Transamerica 
Financial, which operates more than 500 offices of 
Pacific Finance Loans in the U.S., had its best 
year ever. 

• Transamerica Title Insurance Company achieved 
record profits and revenues aided by an active real 
estate market, particularly in the West, where its opera- 
tions are concentrated. 

■ In the entertainment field. United Artists reported an 
all-time high in operating earnings and an industry 
record in worldwide theatrical revenues. A number of 
films, including "Rocky? which won the Academy 
Award for Best Picture, contributed to the success 

■ Trans International Airlines, our charter air carrier, 
showed substantially higher earnings for 1977 as the 
result of continued demand for low-cost passenger 
travel and a strong increase in cargo revenues. 

• Budget Rent a Car had its best year to date with 
advances in revenues, earnings and fleet size.The 
Budget system continued to expand with new airport 
locations and overseas licensees . 

• Delaval Turbine enjoyed its third consecutive year 
of record profits and revenues. Delaval is a major sup- 
plier of engineered products to the energy, aerospace, 
marine; petrochemical and process control markets. 
Cash Dividend Increase. Transamerica boosted its 
common stock dividend 21 percent in 1977 to an- 
annual rate of 80 cents per share. The action marked 
the 16th consecutive year of dividend increases to 
shareholders who have maintained their investments 
in Transamerica . 

R.O.E. Consolidated operating earnings showed an 
after-tax return on average equity of 17.5 percent 
for 1977.. 

Outlook. The prospects for Transamerica s businesses 
remain promising. We enter 1978— our 50th year— in 
strong financial condition and with sustained demand 
for our services and products. 

1972 Highlights 

• Operating income advanced to $171.1 million ($2.56 
per share) on revenues of $3.2 billion. 

* Life insurance operations, led by Occidental Life, 
posted new highs in both revenues and operating 
earnings. Life insurance continues as the largest con- 
tributor of corporate earnings. 

- Transamerica Insuranee^our property/casualty 
insurance subsidiary, reported earnings more than 
double its record results of 1976. 

John R. Beckett 

Chairman and President 


For a copy of our annual report write: 

Corporate Relations Department, '&ansamerica Corporation, 
600 Montgomery St, San Francisco, CA94UL 

gone badly wrong, and bad' 
required refinancing from 
London .at- the official rate, the 
cost could have been devastat- 

But there have been no such 
disasters. One reason for the 
group’s success is that its initial 
purchase proved to be an abso- 

lute -winner. It was financed by 
instalments, and it generated 
buckets of cash. Hanson is the 
first to admit that it could not 
have moved nearly as quickly 
as it has without this strong 

Another important feature is 
the fact that the group , has 

.concentrated on buying . 
at a discount, especial . 
early stages of its US. . 
ment This has obvious ' 
tons about the nature 
businesses it has been 
pick up — Hanson has 
ised - in volatile indtu 
a low point in their 
cycle — but it has me/ 
.its gearing ratios in 1 
have been much low 
would have been the < 
it bought so-called. “j 

Finally Hanson has . ~ 
support of a strong." 
sbeet in the UJv. One si; ? 
moment came in the _ 
of 1975 when it fuse, 
through a rights xsse- 
proceeds could not l- 
f erred to the U.S. bet . 
exchange control ieg- 
but the issue bought T 
debt equity ratio tin 
which persuaded ILS,.-' 
that the group' was 
further support 

The group's ambiti ’ 
not yet stated. It is : - 
ticularly anxious to^ _ 
publicly quoted subac- 
the other side of the 
although its attempts, 
bird shows that it Is:j 
to contemplate such * 
necessary. Meanwhile, . 
remains Hanson's “pT 
vestment area." 

Richard Lar. 


- A 

St. Gobain 

SAINT-GOB AIN-Pont-a-Mousson 
company, with 1977 sales of 
ranks as France’s largest private 
Fr5.31.8bn. Half these sales were 
made abroad, as were no less 
than 96 per cent, of net profits 
of just under Frs.6QQm. Its 
main vehicle in the U.S. is the 
Valley Forgebased Certain-Teed 
Corporation in which it holds a 
majority stake and which makes 
fibreglass products,, building 
materials and piping. The U.S. 
accounted for 12 per cent of 
consolidated sales and 17 per 
cent, of net profits, 
Saint-Gobaio’s involvement in 
the U.S. is a long one, going 
back to the late 18th century 
when it was already an exporter 
of glass. Its first investments in 
the U.S. came after World 
War n when it bought a string 
of small glass manufacturers. 

It was not until the early 
1960s that Saint-Gobaln decided 
to make a serious attempt to 
expand in the U.S. market. To 
consolidate its strength it 
merged its various glass con- 
cerns and set up a brand-new 
flat glass plant based on the im- 
proved mechanical polishing 
technology it bad developed in 

It was a case of instantaneous 
obsolescence. Piiklngton’s float 
process came on to the. market, 
not only destroying the validity 
of the American investment but 
necessitating an enormous effort 
of reconversion in the French 
company’s European plant. At 
the same time the violence of 
the reaction by American com- 
panies to its encroachment in 
the U.S. market surprised Saint-- 
Gobain. . , 

So much for Saint-Gobain s 
first adventures. Meanwhile 
it-a-Mousson. at this time an 
Independent cast-iron pipe 
manufacturer, bad carried on a 
desultory trade with the U.S. 
dependent largely on monetary’ 
factors. Its main investment 
was immediately after World 
War II when it bought a foundry 
In Virginia. 

By the mid-1960s both Saint- 
Gobain and Pont - a - Moussoo 
recognised the need to tackle 
the U.S. market but neither had 
the resources to do so. 

What made the situation 
worse was that Saint-Gobain 
was running scared in world 
markets before the big American 
multinational glass manufac- 

turers’. Although the -French 
company had licensed its fibre- 
glass technology to Owens 
Corning of the U.S. it was the 
American company which held 
the sales initiative. Conversely, 
Saint-Gobain itself was the 
licensee of Owens’ fibreglass, re- 
inforcing materials ’technology. 
The French company decided 
that it must seek expanded out- 
lets for fibreglass insulation pro- 

The scene changes now to the 
U.S., where the Certain-Teed. 
Corporation, with solid growth 
in the roofing materials sector, 
was looking for new strings to 
its bow. It had made an inter- 
national debut when it linked 
up with Turner and Newall, the 
British company making over 
its asbestos pipe interests in the 
U.S. to the U.S. company in re- 
turn for an 11 to 12 per cent 
stake in Certain-Teed’s capital. 
Certain-Teed was already a very 
big distributor of fibreglass in- 
sulating materials, and it tried 
to develop its own interests in 
this field by buying up small 
U.S. manufacturers. 

It was a disaster. The tech- 
nology was inadequate and 
Owens, the main Certain-Teed 
supplier of these materials, took 

Thus in 1967 Saint-Gobain was 
looking tor an American 
partner in the insulated fibre 
glass products area. Certain- 
Teed was looking for technology 
in the $ame field. They came 
together in a 50-50 joint venture 
in which the American company 
provided most of the physical 
assets and Saint-Gobain the tech- 
nology and patents. 

But then -events in France 
took a hand as the other French 
glass giant, BSN, launched a 
violently contested takeover bid 
for Saint-Gobain. The latter’s 
energies and resources were 
committed to this battle, and it 
was left to Certain-Teed to 
supply the new capital needed 
for the joint venture, so much 
so that the ' American stake 
moved up to 80 per cent. 

As the BSN bid failed Saint- 
Gobain ’ and Pont-a-Mousson 
came together in a merger and 
sat down to work out an 
American strategy. They 
decided that: — 

(a) The already running-down 
flat glass business should be put 
to sleep as peacefully as 

(b) The foundry interests 
were too small to serve as a 
basis for expansion; 

(c) Certain-Teed was the best 
prospect as the primary vehicle 
of the intended U.S. expansion. 

Negotiations with- Certain- 
Teed led to the American com- 
pany absorbing the joint ven- 
ture in return for which Saint- 
Gobain got an 11 to 12 per cent, 
direct stake in the Certain-Teed 
capital. At the same time the 
giant INA insurance concern, 
which had bought from Saint- 
Gobain shares in the French 
Suez group at the time, of -the 
bid battle with BSN, also came 
into the Certain-Teed capital at 
SaintGobain's suggestion (to 
act’ as gendarme). 

In 1973 the French company 
lifted its stake to 32 per cent, 
via a tender offer on the New 
York Stock Exchange. The 
following year Certain-Teed 

nearly went bankrupt 
had to write off St 
property investment, alt 
managed ot report onlj 
final net loss. Tbis let 
dismissal of the man 
and the appointment of 
Meads, of the INA Con 
as the new chairman > 
job of raising as much n 
he could lay hands on 
the company afloat 

SaintGobain agreed 
capital increase which r 
stake to 39 per cent i 
took some convertible 
ence stock; in 1976 it 
the Turner and Newall 
give it a final majority 

Substantial investm 
planned. In the fibre ; 
inforcing field a $100m 
ment over five years i 
is under way which » 
the American subsidiary 
second or third positioi 
sector, while a flbr< 
insulating plant is beii 
for around $20m. in Ca 
Later possibilities u 
chemicals and fine ci 
investments while the i 
effort is being bolsteret 

In 1967 Certain-Ta 
sales of $167m. and ne 
of $3m. In 1977 saJ» 
8818m. and net earning 
Last year's 8118m. of oi 
income was divided ■ 
fibre glass ($54m-)» i 
materials ($45. 5m.) am 

“ Policy is. to transte. 
UB. whatever techno 
transferable," says 
Gobain. . 


A P O L L O 

Edited by Denys Sutton 

The world’s leading 
magazine of 
Arts and Antiques 

Published Monthly price £2,00 

Overseas subscription £28.00 . ' . • ■ - - 

Apollo Magazine. Bracken House.'! G Cannon Street, London EC4P 4BT 

Annual SobsCTption G5 

USA 4 Canada A-rAs^ 



« ; Ffeancial Times. Wednesday April 5 1978 


. , . ' 

*• Ma* ph«. 

iJ i*_33 i J .. { -V i: and. rousumer pro- 



wysumer pro- 
group, is jio newcomer to 

.-M’ 8 '**®*, " tb.e .TJ.S. market both in terms 
i'": - ti A ? f investment and sales. Start* 
Brylcreem before 
e 5 j.J World War E.Beecham has 
“ ,r *4!.v % gradually built up its US 
V- V Pjefence' to : the point where 
* ••>. ■. Worth and South American sales 
"■^vfc.;. 1^. now account for about a fifth 
c " - r -%K ? f its world turnover of £820m. 
-■ir.r' ;> J • T ^ e company's ' activities 

• “vide quite cleanly into phar- 

- ; 0-j ®aceutical and consumer sales. 

' " * 5s r»b 0n tIie consumer front Beecham 

!*• relaunched Brylcreem in the 

H* 8 - the war, and during 
‘ ■■'fcjM ’ ^\ ie s huilt this up into a 
7'. -/fa besTftnrand leader. Xh the 1960s it 
- " t0 ■ make - and- market 

; *J5 : Macleans toothpaste in the U.S. 

. : -^atJr April 1971 the company 

. *». ■acquired- for $55m. S. E. 

l-;* y^. VMassengill; a 'company whose. 
'* --- main products lay in the phar- 

r e .- er , , maceutical. -area but which' 

“Svr cpntributed a well established 

■.'v. . n. '"° line of feminine hygiene pro^ 
ducts to Beeeham's U.S. 
•-'7 J .^ns » consumer sales, A year ago 
. -.7 V-'.' '•U Beecham. made its -largest ever 
1 - . to investment in the U.S.. buying 
jJ the Calgon consumer products 
.fiat business for 381m. from' Its 
:fI ii» ' Pharmaceutical rival .. Merck. 

• J " The most attractive product 

^icholacr, h , en : V s ains Free - “> ™ti- 
U, *S I4 sutrc fahnc softener, backed by 

a ' Calgon range Of detergents 
and water softeners, and an 

established cough mixture and 
throat tablet 

The interesting thing about 
.?nt.-E’tr . ^ growth in the US. con- 
> 00 *?r sumer business is Beeeham's 

"■ evident ability -to thrive' ia what 

*Es is normally considered to be the 
' I R , ££ ^ lan d that sets the pace in con- 
„ 0-, sumer marketing techniques, - 

•*■ '■ :c# Wife " • • ' 

•• ■ -• •• •" 

■ •" ■■f' 7 

T-ol.Ti u i. r - • 


• J -' : ' -SrilM • . :■ - p ^ 



Mr. G. J. (Bob) Wilkin*, chairman and chiej executive 
Beecham Group 

Meanwhile Beecbam has built 
up its U£. pharmaceutical 
business as well. The starting 
point was the -company's break- 
through- with Ampicillin, a semi- 
synthetic penicillin, in the 
1950s. Early in the sixties the 
company began to make this pro- 
duct in a rented New Jersey 
factory and by 1987 had built its 
own pharmaceutical plant, and 
bad. replaced distribution agree- 
ments with -its nwzi marketing 
'organisation- . ; : 

Tfaemain point of the acquisi- 
tion of IfasscaigiU was to use 

its pharmaceutical marketing 
presence rather than its pro- 
ducts. To-day the company's 
most important pharmaceutical 
product is probably Amoxy- 
cillin, a broad spectrum anti- 

Beecham also has a growing 
veterinary business in the U.S. 
It expanded this recently with 
the purchase from Rohm and 
Haas, a U.S. chemicals com- 
pany. of its veterinary and 
animal health interest for 
£9. 5m. 

Nicholas Colchester 

TWO YEARS of intense effort 
to complete an acquisition 
which only stands to increase 
earnings by about 1 per cent 
may sound like a quixotic use 
of management time. But when 
the deal is one of the biggest 
ever Transnational takeovers — 
as is Unilever’s proposed 8485m. 
offer for National Starch and 
Chemical Corporation of New 
Jersey— then there are bound to 
be a few complications. 

When Unilever decided that 
it had to increase the U.S. pro- 
portion of its international port- 
folio of business, its first 
problem was to identify a 
purchase that would be big 
enough to make a difference, 
and yet which would not lead 
to trouble with the antitrust 
authorities. Greenfield invest- 
ment on a really significant 
scale was thought to be too 
risky. Its existing UB. interests 
in detergents, toilet prepara- 
tions and tea were already big 
enough to bar any purchases in 
these areas, and an attempt to 
buy a foods or consumer pro- 
ducts business might have been 
opposed by the U.S. authorities 
under the doctrine of potential 

At the same time, although 
the group was prepared to 
widen its industrial base, it was 
not willing to move into com- 
pletely unknown territory. 

National Starch was one of a 
dozen companies on Unilever's 
list (it was not the biggest) and 
Us qualities included strong 
management, a good profits 
record, availability, and lines of 
business which Unilever knows 
something about both as a con- 
sumer and as a chemical manu- 
facturer outside the U.S. Final 
antitrust clearance has yet to 
be obtained, but is not thought 
to be a serious problem. 

Preliminary talks started last 
summer, and the proposed 
terms were announced in mid- 

k A *3’.: 


vrSV '.t-'-T • 

:■ ■■ ,* ■ ' ****•. 

* - \ • *- * . i’.A- , 

,’lV ?.r. 

• . • .... . • . . • -S-. “ ■ * •s; 1 . : 4^‘v- r- 

f v. v rv\. ; *«§±i » • - ~^jgj --v- - :r:f : ; * ft 

• * > 


4 *■. m -a 

Sir David Orr, chairman , Unilerer 

December. Since then, the main 
hurdle has been the U.S. In- 
ternal Revenue Service. The 
deal has been constructed in 
such a way as to enable major 
shareholders in National Starch 
to defer their capital gains tax 
liabilities — which could run as 
high as $40 m. — provided the tax 
authorities grant their approval. 

Unilever had originally been 
hoping to receive clearance by 
mid-March but the target date 
has now moved back to the end 
of this month. The delay is put 
down to bureaucratic snarl-ups 
rather than to any unforeseen 

Meanwhile, there has been 
plenty to do. The original letter 
of intent has been superceded 
by a full scale merger agree- 
ment, several hundred pages 
long, and a further document 
has been agreed laying down 
how the relationship of the two 

groups should be organised 
prior to completion. Preparatory 
work has gone ahead on the 
various proxy filings required by 
the Securities and Exchange 

Altogether not far short of 
ten separate teams of lawyers 
have nibbled at the deal at one 
stage or another. Total expenses 
seem likely to exceed $5m. 

If all goes according to plan. 
National Starch's shareholders 
will be asked to approve the 
deal sometime in June. If any- 
thing, the delay may well have 
made them more compliant than 
otherwise. When it was 
announced, the price offered by 
Unilever was about 70 per cent 
above earlier market levels — 
and since then the Dow Jones 
Index has dropped by nearly a 

Richard Lambert 

THE CHEMICALS industry has 
for long been among the leading 
West German investors overseas. 
The rise in the value of the 
|Deutschemaik and the decline of 
1 the dollar, coupled with steeply 
increasi ng labour costs and en- 
vironmental protection over- 
heads, has only served to in- 
crease the impetus in foreign in- 

Of the. three West German 
chemical giants— Hoechst, Bayer 
and BASF — Bayer has devoted 
more of its resources to over- 
seas investment It is heavily 
dependent on its foreign turn- 
over. Close on 60 per cent of 
the parentis sales are generated 
1 abroad, while nearly 70 per cent 
of total group sales come from 
outside the JFederal Republic. 

Last year the group’s invest- 
ment world-wide amounted to 
some DUl.Tbn. (£4 54. 5 5m.) of 
which a hefty chunk went over- 
seas. The United States received 
a major share of this with the 
strong point being the group's 
$25 1.6 m- acquisition of a 97 per 
cent interest in Miles Labora- 
tories, man ufacturers, among 
other things, of Alka Seltzer. 

Bayer, whose turnover in the 
first nine months of last year 
rose 2.1 per cent to DM16.2bn. 
(£A33bn.), now has three major 
US subsidiaries which in 1976 
— the latest figures available — 
reported sales of a total of 
$1.16bn. The other two are 
Mobay Chemicals Corporation of 
Pittsburgh and Cutter Labora- 
tories of Berkeley, each 100 per 
cent owned by the group 
through its US. holding com- 
pany, Rhinechem Corporation. 

While the decline in the value 
of the dollar has done tittle for 
Bayer’s Deutscfaemark profits, it 
has enabled the group— like 
many other West German indus- 
trial concerns — to invest in the 
U.S. at what in D-mark terms at 
least, are very attractive prices. 
Miles Laboratories cost Bayer 
$47 per share, well up on the 
original $40 offer. Although this 

price raised eyebrows in some 
quarters, it acquired what 
analysts have rated as a good 
medium term investment pro- 
vided management can achieve 
its goal of raising return on 

Bayer’s record in this field 
has been good. When it acquired 
Cutter Laboratories in 1974, for 
instance, the U.S. group was a 
loss-maker. By 1976, however, it 
turned in pre-tax profits of $6m. 
os sales of $!63m. 

Miles is strong in pharos 
ceuticals, diagnostics, food pre- 
parations and special bio- 
chemical products and fits well 
in to the Bayer nest With manu- 
facturing facilities in 21 coun- 
tries. it offers considerable 
scope for rationalisation — an 
area in which the West German 
chemicals industry, perforce of 
necessity, is expert. 

Bayer’s interest in the U.S. 
market — after all, the world's 
largest — is likely to continue as 
the decline of the dollar is 
making it increasingly difficult 
to compete from its West Ger- 
man production facilities. In 
Deutschemark terms! personnel 
costs have increased by 69 per 
cent, in the five years since 1972. 
This is an average of 11.1 per 
cent a year and a very steep 
rise indeed in a country where 
the inflation rate has been well 
below the European level. 
Furthermore the effects of this 
have been gravely exacerbated 
by the rise in the value of the 
Deutschemark and the' decline 
of the dollar. 

During the post 12 months the 
parity of the dollar against the 
D-mark has fallen from nearly 
DM2.40 to about DM2 and no 
real end to the decline is yet 
in sight. This has left West 
Germany’s chemicals majors 
with precious little alternative 
but to channel an increasing 
proportion of their capital 
investment overseas. 

Guy Hawtin 


-se .5*. 


• ’? lei? 5 
T'Cddt- li 

y$5r ' • f r 7 

Jt ate 


Richard li 


■ . . -*-* L 

- ■» . 

Siemens, one of the largest 
electrical and electronics groups 
in the world has chosen a 
cautions' stephy-step approach' 
to investment in the UjS. But 
there can- be no 1 doubt that -in 
the past 18 months the pace of 
its infiltration into the.: JJA 
market has' quickened. ' _ ; 

In this period, it- has pur-' 
chased- 80 .-per.^nt of litronix,^ 
a California'^ ^manufacturer of 
semiconductors' . and - opto- 
electronic devices and 20 per 
cent, -of Advanced .Micro 
Devices, a growing maker of 
integrated circuits. ; It - has 
formed a joint ventured called 
Siecor with Corning Glass 
Works, to make optiral fibre 
communications cable, and- , a 
second joint venture with Allis- 
Ch aimers called Siemens-Allis 
which will seU electrical 
switchgear and other power 
transmission equipment . 

If this suggests rather a frag- . . pr .'Bernard Plettner, chairman , Siemens, 

men ted approach to the UA '• ' i •" 

market that is exactly the way of -e turning - point in 1970. Iti. dent on some upturn in the U.S. 
the Siemens top management that year Siemens established -market- for generating equip- 
would have iti . Siemens has an its first corporate headquarters ment 

extremely -broad product range . in the U.S. Its KWU subsidiary • But while Siemens weighs its 
and each of its product divisions (at - that time 50 per cent., ch an ces in the U.S. in this tra- 
il as a high degree of autonomy, owned) also took a 50 per cent, ditional area of German engin- 
Sietnens’ tendency towards ’.U.S. interest in AUis-Chalmers Power eering skill, it is forging ahead 
investment is the result of the- Systems — a joint venture to in its campaign to buy into 
independent, business strategies make power ■ generation equip- areas of technology where 
of several Siemens divisions.' ment ' . ' America excels. The acquisition 
The result . is that . instead. oF. This last, venture is attract- last November of its stake in 
making, a few headline-hitting ing some attention in the U.S. : Advanced Micro Devices was the 
acquisitions .or investments, at the moment because it seems cul m i n a ti on of several years of 
Siemens is moving less con-. that. KWU, the Siemens subsi- looking for the right way into 
spicuously into the Ufi. .than diary and Germany's main the vital business of integra- 
other European companies, and maker of nuclear power stations, ted rirthrits. The two companies 
often by way of co-operation may be about to build a plant are now to form a new corn- 
father than by going it alone, in Florida for the manufacture pany, 60 per cent, owned by 

After a slow start in the U.S. of turbo-generators. This would Siemens, and called Advanced 
in the 1950s, when the company indeed- be a major step for Micro Computers. It will pro- 
concentrated on medical equip- Siemens, but sources -at the duce a full line of macro-com- 
ment sales and- then a- gradually headquarters of the company in puter systems. .. - 

growing list of other Siemens -Munich insist *J»t a J Nicholas Colchester 
products, there was something decision on this plant is depen- rvituuiaa. v^uu-uraner 


can save 

It's a safe bet that, like the average European businessman, you’re 
aware of ah increasing number of European companies opening offices 
in the United Sates. _ . 

What may surprise you, though, is that a growing number are small 
firms, companies not generally regarded as 4 multi-nationals!’ 

Today, it’s no longer necessary to be a giant like Volkswagen to com- 
pete successfully in the largest homogeneous market in the world. More 
and more product categories have been penetrated by smaller companies 
acting upon sound planning and sound advice. , , 

Can you locate close to major industrial markets and still lire in a peaceful 
■ and unpolluted environment? 

Is it difficult to findthe kind of employees you will need ? 

What is the transportation network like? 

What are the advantages of being located near the national government? 

— It, _Li 


To help overcome this problem, and to help you take advantage of 
what is surely the most important single market in the world, the develop- 
ers of the International Center for Business and Industry in Reston,Virgm- 
ia have put together “Sixty Minutes of Sound Advice” taped interviews 
with European businessmen who have opened offices in the States and 
met with considerable success. Arecording of the interviews is yours free 
with the coupon below. . . 

“Sound Advice" is more than a dry listing of facts about locating in the 

u Sound Advice” is a gold mine of information and it's free. 

businessmen about a subjectwhere it is often difficult to get 

In short, “Sound Advice” is a virtual gold mine of information. Tne 

. f , 1 IT - 1 il. 1 1 1 1 — — .1 ~ 

people who have put this together are the marketing people at Restore 
Virginia In case you are not familiar with Reston, the world renowned 
new town just outside Washington, D.C., it is an ingeniously planned res- 
idential and business community located 5 miles from Dulles Internation- 
al Airport and 18 miles from the White House. 

• . ... a .1 nnn - J U... . 


.p- m ;: § 


ir ‘Ml- ■■ 

•• • \ \-tWl ' 

ing work force, a beautiful residential setting that allows many executives 
and their employees to live within five minutes of work, and a transporta- 
tion system that can get you anywhere in the U.S. in time to do a good 
day’swork. . 

or the experience necessary to prepare a facility for you. 

To date, every European company that has located here has met with 
success. But before you consider moving your company anypjace 7 -in- : 




^linutes of Sound' Advice.” 

And all you have to do to receive it is fill in the coupon below: 

, :r ; 

( We asked the Chief Executive Officers of companies that had successfully 
locatedin theUnitedStateswhata businessman just coming into the market 
should look for: 

“Sound Advice 7 * contains the comments oft) Robert Rose, Manager of 
TechnicalServices of the North American Division ofKockums Chemical, 
2.) Frederick Bley President of Optical-and Electronic Research, Inc., 3.) 
JackLeonard, Chairman ofEurotherm Corporation, and4J Roland Wester - , 
dal. President of RUsom International Inc.,) 



1 □ 

1 □ 


I Name. 
I Title. 

Dear Sin Please send me "Sixty Minutes of Sound Advice!’ 

□ lam considering opening an office in the United States soon. 

□ / am not now planning such a move, but may do so in the future. 



V - • ■ 

Each of these leaders has donated time in order to save you time. Ac- 
ding to one, “I wouldn’t be where I am today if I hadn’t been helped 


cording to one, iw 
when Istarted out? 


The four companies represented sell or manufacture a wide range of 

j l. l 1 * a.- fii. — — r *1.- 

W llU fcV *■» mi 

If you are interested in importing goods bjr air; you’ll be interested 
comments like this: “Thanks to DuUes mternational airport, we can phone 
London on Monday and have the materials we need on our premises 

'T. 1 

ue 5 ^ 

Business 6-ifsdestry 

Mail to: Reston International Center for Business end Industry, 
1 1440 Isaac Newton Square N., Reston, Virginia. U.SA. 22090 


Financial Times Wednesday April 5 3.973 j 





Kingdom of Norway 

7 3 i% Notes Doe February 1, 19KS 

US. 558,800,000 

frjwrcrM . Ciumi«d ItoodsduiW 

ImbiI, Ul -onOh tMiMurt *T 



.'l.llOO.IinO 1‘NITS 

American Airlines, Inc. 

.‘■.(HM.uvb S*r new nr $2.1X75 fmi umt. Frdmred Spkk 


W\ira\is tii Pitmmm' ■"■.OTO.MO £»*■&< w Omw*' smx 


Common Stock 

540,000,000 £53 

f $100,000,000 

U. S- BANCORP Inter-American Development Bank 

7A.% Noio Due February 15. 198T flV* Twenty-Five Bond, of 1977, due Jane 1, 2002 


Caisse Nationale des Autoroutes ‘fffil Province 

yV% Gu.inmeed Bonds Due March 15,1997 

I’mondilitHJl'y (urjil tti ai :» f+ym m of principal. p-rmnn. if txy.amdUimil by 

The Republic of France * 


Kraft, Inc. 

7.60% Sinking Fund Debentures 
doe January 15, 2007 


Pacific Power & Light Company 

Vint Manga re F<m6> 
f.KitaindH.Vmata' 1.2M7 


Lucky Stores, Inc. 

Common Stock 

General Foods, Limited 

(IncMTvaird imlrriteb.Kif CAiuity 

81& Notes 1984 

Last year, Goldman Sachs managed or co- 
managed 104 domestic and international public 
offerings totaling $8.i billion.These included over 
$1.2 billion in underwritings for overseas corpora* 
tions, governments and international agencies. 

Jn addition, we were a manager or an agent 
for $14.1 billion in other private and municipal 
financings, including $1 billion for non-U.S. cor- 
porations and governmental issuers. 

We believe this 1977 record reflects our 
commitment to perform on behalf of every client. 
And commitment is an essential part of 
Goldman Sachs capability. An uncommon capability 
in more than 40 financing and investing seri/ices. 


Province of Saskatchewan 

I Canada) 

Debentures Due 2007 


$350,000,000 . 


8.45# Notes Due March 15, 20( ' . 

13,357,000 American Depositary Shares «r j r 

..r . JUpntadmg- 

13,357-000 £1 Units of Orduuay Stock ,^,nAn.— ^ 

The BriHshPetroleum Company Limited «v»am oa^wsbd 

WdlTech, Inc. 

Osa> A Camtnon Stock 


'ChixflKnAf^iponlioa of Newlctk 
7** IfetaDue Jane IS, 2987 

• £35,000,000 

Metropolitan Edison Company 

Hrat Mortgage Bands, Series due 2007 

■ 2,750,000 Shan... 
Manufacturers Hanover Corpora ij f 
Common Sto 

J, 200,000 Shares 

Levi Strauss £5? Qo 

■ Common Stock 



S Household Finance Corporation 

8.20% Debenture*, Serin 4F, lu September 15, 2M7 


Ford Motor Credit Company 

7IV& SoIwnWed Note. <k» July 1 , 1989 

Q fto-YokadoCo,LkL 

ia j i r . w ) 

'6**CmmrtAfe Debenture, doe Aqzb* 31, 1992 

Hbine -Savings and Loan Association 


7‘.?« MgrimcBidied Bomb. Sein R. Due November IS, 1983 

$ 100 , 000,000 

Mortgage-Back rd Bomb, Scrim C, Doe Nove mb er 15, 1985 


Republic of Finland 

8*«% T-ctem.I Loan Bonds Due 1993 

$85,000,000 . 

PubUcService Company of Indiana, Inc. 

Fail Sbrigage Bomb. Serin Z, 8H% — 

Jku October Jr2907 %, 

Ford Motor Credit Company of Canada, Urn 

Cdn $20,000,000 8 148b Guaranteed Note* due May 15,1984 
. Cdn $20,000^)00 8 K 9b Guuunteed Notes due Mey 15,1987 
litmm Mf rrtmb . 1 — Ilfwthy 

Ford Motor Credit Company 

$100;000,000 / 

Household Finance Corporation. 

$.45% Sector Sabordnatal Ddatnrcs, Series 1M, doe Jammy 15, 1997 

The Wickes Corporation 


&25« Notes due July 1 . 1984 

8.875*% Staking Fund Debentures due July 7, 1997 


UT Credit Corporation 

SWGt Series B Sinking Bind Notes 
due' July 1, 2002 



American Credit Corporation Michigan Bell Telephone Company 

w\% Senior Debenture, due January 15. 1997 nirtfBeht Ion- sns Dt6tuiuret.DutJtutl.3glS 

750,000 Share* 

Sears Shaklee Corporation 

Common Stock 



Sears, Roebuck and Co. 

7?*®i> Sinking Fuad Debenture, due February 1, 2007 


• The Potomac Edison Company 

JTint Mortgage Baud*, 8H% Seria Due 2007 


Intermonntain Gas Company 

Common Stock 


Sooth Central BeU. Telephone Company 

TUrt+BfU Tar if ifl. Ihlxnl m m . Due Xturmberl. IBS 


Pacific Gas and Electric Compact 

rnesr «M> BfnrvDfv: .tinmcux Brins 
suuta 17A, w*. W* Ttuun l, 200 

Sucictc Rationale des Chemins de fer Francois 


S' i "I Hi»mnwrd .Vitedie I'Mt 

Ford Motor Credit Company 

S';*; »rin, Dme Somber I J. 2097 ■ * 

/hit Sr#iwrfw «' jttrffogt Btai* nnn 

$ 100 , 000,000 

“ “i 7JST- Note, due March X, 19S8 

$45,000,000 $100,000,000 

West Penn Power Company 8!4S da**™ ** i>«n,b<r i, 2002 

J-int Narlgag* Bond*. Snfn CC,d * A $1 00,000,000 

Out OeeembfrJ. 2007 *tj4 Sdmr&Blal MmUw. lu Dewuto.l, 2002 

$ 45,000,000 

West Pern. Power Company 

t int Mortgage Bottdt, Snitt 
Out VmmberJ. 2007 

The Republic of France | out veemim-j. 2007 j 

$150,000,000 150,000 Shares 

jgf Manufacturers Hanover Corporation M 
8Vk% Sinking Fund Debentures Due August 15, 2007 

Th So wua cT t' ENSERCH 

1 he Southland Corporation corporation 

Vm Sinking Fund Debeutum due Febnury 15. MB ******* Rind Debentures Due 2002 

$25,000,000 " \ _ 

BAKER INTERNATIONAL CORPORATION American Hospital Supply Corporation 



Interstate Power Company 

Font Mortgage Bomb, 8>.« Series Due 2002 


Waher Kidde Oversea* Finance N.Y. 

VM QsmM do* 1. 1S»S 
U MCiiwii r CM w Uw * 

us re e w l «< A i«e «li ft™ , O T, at hwtly 

Walter Kidde & Company, Incl 


Kingdom oF : Norway 

7 \Wi Note. Due’ June 35, 1982 

The LTV Corporation. 

75,000 Units 

$75,000,000 of SUSr SuOangTafS DdentJ lit* 
due February 1 , 1997 

1,050,000 Shim of Common S tork 

1 1 P 

$ 75,000,000 

Central Power and Light Company 

/instate r 

Allstate Financial Corporation 

$75,000,000 1 

7X% Senior Notes due April 15, 1987 

8X% Subordinated Notes due April 15, 1987 

.. $60,000,000 

Gulf United Corporation 

' 8%% Sinking Fond Debentures due July I5,20l 
• ' $125,000,000 ;-5* 

Southern California Edison Compai 


■ First and Rcfundinc Mortgage BonJt, Series HH, Doe^Mj 

...' $50,000,000 JL 

■ Northemlncfiana Public Service Company The May Department Stores Compa : 

* First Mer^ags Bond^SertssZr 8UX, di»A(f9ist'l6 > '2007 . 7.95% Shknig Fund Deb4fau» dne July 15,2002 

Firrt . H oripugr Band, 

Sriht 0,H'.U, dut Oetobtr 7,2007 

Beecham Fmanderlng B.V. 

US. $30,000,000 
ConvsrtUe Ouarantaud Bonds 1992* 

yulu J>slsu — is w snuu i i »tt o*f Si ii mrf 

Beecham Group Limited 


Indiana Gas Company he. 

Common Stock. 


fafa WWW fi^ C&p mMkm 

795% Kntofe$KU faufc. Serin A. Out DmriW 1* M2 

7 . 55 * MOTES Dim 1987 



Potomac Electnc Power Company 

Common Slock 

y%% Debcumwa Due 2007 





%)i% Notes. Due July 1, 2.007 


Singer International Securities Company 

«w t i n. 

The Singer Company 

■ l ■ — 



New Turk Seste Electric &.Gjs .Cobporaxtok 

Ban Diego Gas & Electric Company 


Fit* Mortgage Bomb, S!S,Soio £} due “StO 



Harte-Hanks Newspapers, Inc. 

Southern BeU Telephone and Telegraph Company 

Common Stock 

’F<ntg Tear 8K% DAodareo, Due Mag 1,2017 


$50,000,000 $ 85,000,000 

Walter Kidde & Company Inc. PabUcSeroiceCompanyofln&imaJhe. 

aWiSadung Fond EWkji lure , duo December 15, 2002 1 

JiratJArWr BuA. Sen, Z »» 
JBtJaumtt 1,2007 . 


Home Savings and Loan Association 

7Vtfu Mortgage-Backed Bonds, Series A, Doe June 15, 1982 

■ - , i i In — 


m Commonwealth Edison Company 

Finl JMpueAM Bn+.Salaat, 


Indiana Bell Telephone Company , 

Forty Year Debenture*, Due March 1, 301 7 


Consolidated Natural G<is Company 
Sfift Debenture* Due Jaxn J, W7 





CO-, LTD. . 

Jersey Central _ 

Pown- & light Company 

Alabama Power Company 

First Mortgage Bond* 

u^. sJ5,eoo,ooo 

Fnt IbrtMe BMb, 8H* 5«i(> doa 2007 

8U% Series due July 1,2007 

$per cent. CoomtiHe Bauds 1992 


Electricite de Irance . 

SJrJtf Uu»r»n(ecd &l wpal IXoIex DnsJimo J.IBS 1 ? 
PiyMlM m X M —lir |um»rtt nl by 

The Republic of France 
i,500,000 Shares 


Common Stock 


Carolina Power & Light Company 

Firet Mortgage Bonds, 8 KS Series due October 1, 2007 • 


VS. S28JWWW1 ■ 

$3 0J) 00,000 

Southern Indiana Gas and Bectnc Compasy 

- toMart&BooASM VSitktWlOTT'ImZW . - 

si80,6op,o6o ; j 

CommonweaWi Edison Company.:; 


Honsfoa lighting & Power Cwnpa^ 

5 8.12 Cumulative Preferred Stock ; ; : t- 


@) Motorola, Inc. 

8?9 Sinking Fond Debenture* due October 1,2007 


South CentralBeil Telephone Company 

fort* Imr 8^* Vtbeutur*. Due March 1.2017 

450,000 Share* 


tis. $20,000,000 

300,000 Stares _ 450,000 Sh^ Q rieiaLea rfog 

Texas Power & Light Company ine Dexter corporation **—.*-* — AMienypo^ System, && 

■.W.I6ftefca^Stock.Cu»»ht 1 v. Common Stock 

- .*8.16 Prrfeaei Stock, CUmubtiva 


_ * 

DbqueSne light Company 


Fiat MwftKji B«od**X* Saha im Apal I, MO 

’ Southern. In^aua Gas and 

Spoopoo Siiuij 

'ASfgheny power System, Inc, 

O ii •»»»* 

Eledzk Gnnpany 

Oamnan. Stock 

tfiQOpOOSuuaci Cittmum 


Goldman Sachs 
International Corp. 

40 Basinghall Street 
London EC2V5DE 

704 Yurakucho Building 
1-10-1 Yurakucho 
Chiyoda-ku, Tokyo 1 00 

Goldman Sachs AG : 

LimmatQuai 4 
8001 Zurich 
47 93 33 

Goldman, Sachs & Co- 
55 Broad Street 
New York, New York 10004 . 

, J; -d 

Uncommon Capability 


* -i 

Fi^nclai Times Wednesday April 5 1978 



est to restart the HS-14B 
prt-haul feeder-liner aircraft 
^gramme is a move- intended 
revitalise, the flagging for- 
ces of at least part of the 
aircraft industry, in this 
try, and also, it is hoped, to 
; the nationalised group on its 

J y to a brighter future in 
rid commercial aircraft mar- 
s. The Government is ex- 
ted to' -reply to the request 

jrhe project was .first begun 
1&73, on a Joint .Government 
d Hawker Siddeley Aviation 
vestment of £80ra. at fixed 
auary, 1972, prices. Only a 
_ Jr later, however. Hawker 

* A ,c ? eley Avia tion pulled out, 

ft ving changed its mind on the 
i ? ... r, « ajecfs costs and prospects in 
" s i Hffbt of the world-wide eco- 

"'■“lymie recession that followed 
s oil crisis of late 1973. As 
"^result, the Government with- 
\\ ■_ -w its own investment Sub- 
luently, under trades anion 
. v ^ssure 1 the project has been 
' Pt barely “ ticking over," with . 
" limited injection of Govern- 
t . . — * t *?nt money for design work, 

~ ainst the day when it might 
^ possible to restore the air- 
ift to full development and 

< .7- - . . British Aerospa ce, formed 
' Jam the nationalisation of Haw- 
:cr: H •- ... r r . Siddeley Aviation and other 
■“ ■ ^ Urp^iJor aircraft companies 
■'•ritish Aircraft Corporation, 
r^^.iwker Siddeley Dynamics and 
■" ottish Aviation), now believes 
s at the world market situation 
s changed sufficiently to jus- 
y reviving the venture, and 
wants Government approval 
nd probably also eventually 
me Government cash) for it. 
r- When first mooted in 1973, 

orrau^ F:?P e was described as a 

Vjood neighbour" jet, aimed 
• n. r.. .■Sr,,--.- the market for a quiet, low- 

nsity (70-100 seats) type of 

_ — -rcraft capable of using grass 

'}' 07 ^crads.ljmirip 5 . witil i° w noise isveis. 

b ringing bus^stojrtype a ir ser- 
vice to many communities 
throughout the world which 
either had previously no air ser- 
vices at all or had been obliged 
to make do with piston-engined 
or .turbo-prop airhners. ‘ The 
HS-146 is a four-engined, -high- 
wing aircraft, and Is intended 
to fly at 500 mph over distances 
of up. to 1,200 miles, although 
most of its stages are likely to 
be in the 100-200 miles, or so, 
category. _■ ■ 

The request for approval to 
restart the venture is significant 
for several reasons. First, it is 
the initial move in what will 
probably be a four-stage plan 
by British Aerospace to revital- 
ise Britain's flagging’ -civil aft- 
craft industry (the. other mea- 
sures, to be taken -later, will 
include decisions on a new 120- 
seat version of the BAC One- 
Eleven; on a new 160-seater. 
perhaps with Western Europe or 
the U.S.; and finally on a 200- 
seater, such as the B-10 version 
of the European Airbus). 

By MICHAEL DONNE, Aerospace Correspondent 

One factor in favour of the 
HS-146 is that it is a programme 
the U.K. can' get on with quickly, 
without having to become in- 
volved in long and difficult in- 
ternational negotiations on pos- 
sible collaboration. While 
originally it was envisaged that 
there might he some collabora- 
tion with European companies 
on the venture, the aim now is 
to get on with it entirely in the 
UJKL, except for the engines; or 
where components are bought 
off-the-shelf -overseas. ■ Thus, it 
will be open to foreign com- 
panies to tender for contracts 
to supply equipment items, and 
they could get the business if 
they undercut British compo- 
nent suppliers. 


British Aerospace believes Its relative cheapness. 500-mph p erformanee and 1.2 00 -mile range would make the HS-146 an 

ideal Third World “ bus-stop ” jet. 


20,000 jobs 

- r --Ks 

Secondly, although the HS-146 
plan is not intended merely to 
bolster employment in the for- 
mer Hawker Siddeley factory at 
Hatfield and elsewhere, where 
work on existing civil ventures 
is running down, a go-ahead 
will undoubtedly revolutionise 
employment prospects. At peak 
manufacturing point, the HS-146 
programme is likely to provide 
jobs for up to 20,000 aerospace 
industry workers, depending en- 
tirely on how well the aircraft 
sells in world markets. Without 
it undoubtedly some of. those 
workers would find themselves 
redundant later this year. 

Third, the decision to seek a 
go-ahead reflects British Aero- 
space’s confidence in the long- 
term prospects for 'a jet of this 

type. So far, the group has 
published no figures to support 
its application to the Govern- 
ment but it is believed to feel 
that there could be a world 
market for around 1.200 of 
these feeder-liner types over the 
next ten years or so, of which 
about half might be new or 
second-hand Boeing 737s or 
Douglas DC-9s, and the rest new 
aircraft of other kinds, includ- 
ing Fokker F-28s. Canadian 
DHC-7s, as well as HS-146&. 
British Aerospace feels tbat if 
it can only win orders for 300 
aircraft it will not be doing 
badly. It is also hoping for a 
military market for the aircraft 
Much, of course, will depend 
upon how heavy the investment 
in the programme win be. The 
investment in the original pro- 
ject was £S0m., but now, four 
years later, it is not likely to be 
less than £200 m., and may well 
be more, depending upon how 
inflation runs over the next 
four or five years before the 

aircraft is likely to enter ser- 

The Government having been 
left holding the baby once bet 
fore, after Hawker decided to 
withdraw unilaterally, will want 
to be reasonably assured that 
any funds invested in the re- 
vived programme, whether 
British Aerospace’s own money 
or Government launching aid, 
or botb, is not likely to be 
wasted on a programme with 
limited market potential. 

The Government will also 
have to take into consideration 
the fact that the HS-146 is only 
one — and probably the smallest 
— of several major investment 
programmes sought in the aero- 
space industry for the next five 
years, that collectively will cost 
about £lbn. and perhaps even 
more. These include the other 
aircraft programmes already 
mentioned, and in addition 
several major new engine pro- 
grammes, such as the Roils- 
Royce 535 version of the RB- 

211, aimed at the new Boeing 
"family” of Jets; the RB-432, 
an engine in the “ middle 
thrust” range that could be 
used in future versions of the 
One-Eleven; and the RB-401, a 
new small engine for business 
jets (and perhaps also light 
combat aircraft). While British 
Aerospace will find a substan- 
tial share of this cash from its 
own resources, it is clear the 
Government will also be asked 
to suberibe some of it. and it 
cannot afford to waste a penny. 

Thus, with the memory of 
earlier ventures started with 
high hopes but which came to 
little or nothing, the Govern- 
ment will need to be convinced 
of the validity of all British 
Aerospace's predictions about 
costs and markets, before com- 
mitting itself. The manufac- 
turer takes the view that, in 
spite of the fact that one of its 
original rivals, the VFW-614, 
has recently been cancelled for 
lahk of orders, and that another. 

the Fokker F-28 Fellowship, is 
selling only slowly, there is still 
a market for a new small air- 
craft of this type, that can be 
built quickly with mainly off- 
the-shelf components (including 
the four U.5. Atco Lycoming 
ALF-502H jets), and requiring 
little in the way of advanced 
technology, so that it will be 
simple, rugged, reliable and, 
above all, cheap. 

So far, British Aerospace has 
not published any reasons for 
this conviction, but the Govern- 
ment undoubtedly will want to 
be given chapter and verse for 
the group's confidence tbat it 
can succeed, where one of its 
competitors has failed, and an- 
other has made only compara- 
tively slow progress. Unless 
and until British Aerospace 
provides this information, there 
is bound to be a suspicion that 
the HS-146 is being urged on 
the Government as an “ em- 
ployment booster ” rather than 
a viable project in its own right 

Keeping the cost down is vital 
if British Aerospace is to win 
the orders it needs from 
countries which cannot afford 
expensive aeroplanes, but 
still want something eheap and 
quickly available. British Aero- 
space sees nothing wrong in 
developing an aircraft of this 
kind without direct European 
collaboration, which is being re- 
served for the bigger ventures. 

One criticism that may be 
levelled against the venture — 
as it was originally— is that it 
uses an American engine. The 
reason is that neither in 1972, 
nor now, was or is there a 
British engine available in the 
same power-bracket (about 
6,500 lbs of thrust). At this 
stage, the Rolls-Royce-Snecma 
M-45 series which powered the 
VFW-614 is too large (about 
8,000 lbs), and its future is also 
uncertain. The RB-401 is too 
small (about 5,500 lbs thrust) 
and is not yet developed. The 
Avco Lycoming ALF-502H is 
available, and is derived from 
the military T-55 engine which 
has already logged well over 
3m. hours of flying. 


Overall, British Aerospace 
appears confident that the 
HS-146 will ensure that a sub- 
stantial part of the UJC aircraft 
industry will retain a high level 
of capability in aircraft design,, 
development and manufacture; 
prevent any rundown of labour 
in parts of the industry where 
existing workloads are thinning 
rapidly; and in effect under-pin 
the industry, supplementing 
the additional bigger ventures 
that may be initiated in the near 

Because a great deal of work 
on the venture has already been 
done in the past four-year “tick- 
over” period, it is likely tbat 
once Government approval for a 
go-ahead is given, progress could 
be rapid, with final design 
moving into top gear in the 
latter part of this year, and air- 
craft coming off the line in about 
two to three years time, around 
19S0-81, and entering airline 
service in about 1982. If the 
world demand expands the way 
British Aerospace hopes and 
believes it will, the programme 
probably could be accelerated. 

But British Aerospace 
believes that one of the major 
points in the HS-146’s favour is 
that it will virtually be in a 
class of its own — the only really 
new, cbeap feeder-liner and bus- 
stop jet designed especially for 
Third World markets — and that 
if allowed to go ahead, it could 
establish a commanding lead in 
world markets that could per- 
haps make it unbeatable. It is 
a risk, but in British Aero- 
space's view a calculated one. 
Lord Beswick, British Aero- 
space's chairman, bas always 
made it plain publicly that he 
wants every new project under- 
taken by the group to be com- 
mercial, earning profits. With 
the HS-146. he feels the group 
has its first real chance since 
nationalisation of proving the 

Vl - '*• -ft 

‘ ‘I*. 

t CciT.psriy 

Letters to the Editor 

'JOi :i 

.The future 
for coal 



om the Chairman, 

A. Or p 0i*2 OtP tional Coal Board. 

Sir. — Ray Dafter’s article on 
-.r Irirth Sea Oil (March 31) erapha- 

— es the need for a long-term 

proach to energy policy. 

He estimates that “10 years 

C _ >“ now output from these 

OipOrcDGids (that is, the 20 or so oil- 
ids now on stream or under 
:.-.-'.^eIopment) could have de- 
ned to about half their peak 
:e,” and he conoludes that “the 

someone's pet theory, but on a 
painstaking investigation of the 
actual facts such as was carried 
out during our recent research. 

Results so far have produced 
a whole range of conclusions 
relating not only to most aspects 
of operating performance and 
their relationship to overall 
efficiency, but also to the kinds 
of management policies and prac- 
tices which are or are not linked 
to success. 

L. Taylor Harrington. • 

25, Bloomsbury SquareiyW-Ql. 

ft’ prospects are already being Controls on 

• -plotted. What remains to be „ ■ . - 

■ ; jnd will be very much a second impflns 

Whatever may be the success 

“hieved in expanding nuclear 
. •. - -. wer. there will be a continuing 
• ed for fossil fueL Coal is the 

• C:.., .. fvirly fossil fuel we possess with 

• * -jple reserves (at least 300 
j present rates of produc- 

: :.r.- ■— inK The en ergy situation in 

-iich we are likely to find our-. 

(ves towards the end of this 

• •»< otury fully justifies present 

ins for the progressive exp an - 

* Y-in* m of coal production and for 

* e increased efforts being put 

• . coal research. 

In due course coal will «n- 
ubtedly have a new role to 

. ay as a replacement fuel for 

• J-riill" I aad g- as through conversion 
_^.-hniques now. being actively 

.. ■ veloped by the National Coal 

iard. British Gas Corporation - 
d the oil companies. In the 
>antime our limited resources 
oil should be carefully nursed 
r sort'd restricted to premium uses 
■ - “ th coal taking on more of the 

,n-premium load. 

■rek Ezra (Sir), 
ibart House, m 
osvenor Place, b. *V J- 

esearch into 

xm the director. The Centre 
r interfirm Comparison. 
- '-.V>:Sir, — Readers of. your Men 
■‘‘f 1 ‘ d Matters column of March 30 
lg ht be excused for thinking 
. -■'■’at our recently completed re- 
arch project into reasons for 
fferences in relative company 
rforraance was narrow in scope 
d that the conclusions are 
perficial and obvious. I wish 
...■uSSS correct this impression. 

The project and its conclusions 

s& not relate only to the few 
. -itips mentioned in your column. 
■■■ represented an attempt tp 
certain whether some eom- 
. nies were consistently more 
ecessfnl than others; and if so, 
xv The “why” involved an 
amination of some J 1 ®® 

nuance data including defiled 

ratios; prpdueavlty 
iasures; ratios indicating 
gree of utilisation ofj each kind 
fixed and current assets, 
e and investment per head; 
owth of sales, employment 
ed assets and profits; and size 
a-viff firm. It also involved con- 
leering information on over 100 
Management polides and .prac- 
-es which together covered 
> e ry major management fnne- 
, n a S well as background rafor- 

: ..Nation about such matters as 

e ownership and location of 

'e Ann. The data were avail- 

»le to us in depth, and_ on a 
rictly comparable basis of 
finition, over a period ranging 
i to seven years for 240 com- 
nies in several industries and 

At a time when there is much 
ncern about the level of UJL 
d us trial performance, in form a- 
,n about the factors which 
use firms to he more or less 
fective is, we think, of interest 
management and all others 
ncern ed with improving indus- 
ial performance. This is par- 
mlariy so if the information 
based, not- on subjective lm- 
•essions. a few. case studies,' or 

From Mr. D. Leyton. „ v 

Sir, — Anthony Harris (Econo- 
mic Viewpoint. March 30) was 
more sympathetic than I can be 
to the Cambridge Economic 
Policy Group's- advocacy (yet 
again) of import controls as the 
only, “practical” means of 
achieving a rate of growth suffi- 
cient' to reduce unemployment 
to lm. by 19S5 and 500,000 by 
1B90. ■ 

In my view, restrictions severe 
enough- to keep out one. quarter 
of our total imports of manufac- 
tured goods by the late l9S0s 
would be disastrous; imposed 
during a period when the Group 
expects world- trade to be grow- 
ing only slowly, they might well 
sgt in motion a wave of retalia- 
tory protectionism which would 
drastically reduce the volume of 
world trade on which we (with 
a relatively small home market) 
crucially depend. Furthermore, 
so far from encouraging extra 
efficiency, protection on such a 
large scale would. I believe, re- 
duce the incentive to Improve it; 
and. without greatly increased 
efficiency and productivity, there 
would be a diversion to the 
home -market of goods which 
would otherwise have been ex- 
ported. Despite this diversion. 
British industry would almost 
certainly be unable to provide 
replacements for all the lost im- 
pqrts. so that demand would 
exceed supply and foreft prices 
up (unless, of course, it were 
deliberately reduced by fiscal or 
monetary measures, which would 
defeat the object Df the whole 

There Is, I believe, only one 
solution to our problem of slow 
growth and high unemployment; 
and that is Improved produc- 
tivity.. Your Midlands corres- 
pondent (March 30) quoted an 
internal report which suggests 
that British Ley Vi ad’s output per 
man is half that on the Conti- 
nent. . • • • 

A recent Sunday Times 
survey, which compared British 
Ford’s performance at Dagen- 
ham with that of Ford’s Conti- 
nental factories using identical 
machinery, reached a similarly 
unfavourable conchision. Until 
management and unions can co- 
operate to correct fundamental 
weaknesses of this kind., no other 
measures nan be more thaq tem- 
porary palliatives. 

D. G. Layton. 

33, Crtmbome. Avenue. 
Eastbourne. East Sussex. 

of such share certificates is 
exceptionally broad is, with only 
a few exceptions in specialised 
fields, undoubtedly correct but 
the same does not apply to 
“busted bonds." 

The size of bond issues is nearly 
always easily ascertainable and 
many of these are still dealt with 
on the Stock Exchange— prices 
are quoted in the Official List A 
further attraction of such bonds 
is that the possibility of a settle- 
ment may exist 

Typical examples are the 
Chinese loans whose total out- 
standing capital is limited to 
£61m. A large proportion of 
these bond certificates' must have 
been lost or destroyed in the 70 
years since the first issue was 
made and the possibility of a 
settlement cannot be ruled out 
in the case of a country who is 
an applicant to join the World 

The description of bonds as 
“worthless" is therefore mislead- 
ing and this collector— until such 
time as a better title can he 
thought of — would prefer to con- 
tinue the use of “busted.” 
Donald Ross. • 


Blackball Lane. 

Sevenoaks, Kent. 

we can assume is no more or less 
professionally competent than 
the Government Actuary) stated 
“. . . we would agree that the 
assumptions for the analogue 
scheme were in line with those 
being adopted at that time for 
funding such schemes. ..." In 
other words the suggestion 
always implicit in Mr. Furse's 
letters, that in some way the 
Government Actuary did not give 
an independent professional 
judgment on the matter, is quite 

B. H. Davies. 

49, Cleaver Square, S. Ell. 

Decisions on 

From the Grenier London 
Council. Member -for Finchley 
Sir,— Just to settle the matter, 
could Mrs. Alice Waters (April 
3) provide us with a list of 
significant decisions In which 
Kent Education Committee suc- 
cessfully defied Government 
policy during, say, the past 
year? It is irrelevant to talk 
about “ freedom ” unless you 
are free to disagree with 
Government and get away with 
i 1 - 

Roland Freeman 
Members' Lobby. 

County Hall, S.EJL. 

Urgent airmail 

From Mr. W. Jaspert 
Sir,— At London Heathrow 
airport post office facilities are 
provided in terminals 1, 2 and 3. 

At most major European air- 
ports, similar facilities are pro- 
vided. If one takes an urgent 
letter in Europe to the airport 
past office, then it will be sorted 
at the airport and speedily des- 

At Heathrow, though, they do 
things differently. The letters 
are taken back to central London 
for sorting and then brought 
back to the airport. This is in 
the interest of efficiency! So a 
letter posted from the airport Is 
actually delayed. 

It seems that this interesting 
service was devised by the Post 
Office about 2§ years ago. Before 
then letters were sorted at the 
airport and sent off quickly to 
destinations overseas. Perhaps 
more influential organisations 
could prevail upon the Post Office 
to take a fresh look at this 
irrational set up. 

W. P. Jaspert 

93a, Belsize Lane, N.WJJ. 



From Commander R. D. Boss. BN 
Sir,— j read with interest James 
Bartholomew’s article on the col- 
lection of Provincial Notes (April 
1). In ids article he referred also 
to the collection of “worthless 
bonds * and repeated an opinion 
that there were too many of these 
around to make their collection 
worthwhile. , „ _ 

- The collection of " bonds to 
which he • refers is generally 
understood to embrace both 
bonds on which the Issuing coun- 
try. has defaulted as well as 
share certificates of extinct com- 
panies, The’ view that the variety 



From. Mr; B. Davies. 

Sir-— Mr. Furse’s letter of 
March 22, concerning the cost of 
inflation proof civil service pen- 
sions, implies that he is unable 
to understand the arguments in- 
volved. He refers to the evidence 
to the Select Committee but has 
clearly not comprehended what 
it actually says. 

There is bis misunderstanding 
about the comparison made. The 
evidence, is Quite -clear that the 
comparison which needs to be 
made by the Government 
Actuary is not, as suggested by 
Mr. Furse by his reference to 
National Association of Pension 
Funds surveys, with the post- 
retirement increases currently 
provided, by the generality of 
pension . schemes. Rather it is 
with the pension schemes of the 
restricted group of employments 
used as analogues by the Pay 
Research Unit and that study 
showed that these schemes are 
expected to provide more 
generous inflation proofing than 
the average scheme. 

He suggests that the Govern- 
ment Actuary claims that Is per 
cent, is still an appropriate figure 
for the adjustment This is 
specifically not so. What the 
Government Actuary does claim 
in' bis evidence, howcver. is that 
it was the right figure in 1973 
and In the absence of the Pav 
Research Unit data it is not 
possible to make a proper recal- 
culation of the current adjust- 
ment required. ■ 

-Whether or not the Govern- 
ment Actuary made the right 
assumptions in 1973 is of course 
arguable. What Mr. Purse 
Ignores from the Select Com- 
mittee evidence, however, is that 
the Independent Actuary (who 

Aid schemes 
for industry 

From Mr. B. Manning 
Sir, — With reference to your 
article on aid schemes for 
industry (March 22) it seems to 
me that t(ie needs of the smaller 
firms have been rather over- 

looked by the Government. 
True, grants are available to 
them, but many small firms 
find the sheer volume of paper- 
work necessary to support an 
application a disincentive to 

My company has done some 
research into reactions to the 
offer of development grants. On 
the whole, the larger companies 
knew what was available and 
had taken full advantage of the 
offer. It -was the small to 
medium sized businesses who 
found that they just did not 
have the capacity to cope with 
the masses of statistics involved 
In applying. Yet these are the 
very areas where a Government 
grant could open the door to 
expansion and development. It 
is a pity that more attention is 
not paid to this area which 
could benefit most from Govern- 
ment help. 

Bryan R. Manning 
(Senior consultant). 
Handley-Walker Company, 
Icetzgh House. Ormond Yard, 

St. James’s, S.W.l. 

Annual site 

From Mr. A Gray. 

Sir. — Mr. Brady (April 1) 
thinks it would be difficult to 
separate tbe annual site value 
from the rental charged for 
buildings and other improve- 
ments. Therefore I am interested 
to know if be would pay the 
same total sum for identical 
Pffices, one situated in the centre 
of the City of London and the 
other in Wapping — and if not, 
why and how would be differen- 
tiate between the two? 

At the same time I am eager 
to understand tbe phrase " loca- 
tional chaos” and obtain some 
further exposition .on bow the 
collection of the annual site ren- 
tal, in place of taxes on produc- 
tion, wonid actually hamper 

And also, finally, perhaps he 
wonid he kind enough to explain 
how the collection of this com- 
munally created value would 
have dire consequences for our 
standard of tiring. 

Adrian Gray. 

31. Bussell Road. 

Wimbledon, S.WJ9. 


Monthly meeting of National 
Economic Development Council 
will include discussion on alloca- 
tdon of Britain’s oil revenues. 

Rail pay talks resume , 

World Industrial Advertising 
Congress opens. Royal Lancaster 
Hotel. W2 (ends April 7). 

Mrs. Shirley Williams. Education 
Secretary, addresses meeting at 
Carshalton Public Hall. S p.m. 

Mr. Patrick Duffy, Under Secre- 
tary of State for Defence for the 
Navy, visiting the U.S. 

Lord Mayor attends luncheon 
with chairman of British Pet- 
roleum. Moor Lane, E.CJS, 1 p.m. 

House of Commons: Wales Bill 
committee stage. 

To-day’s Events 

House of Lords: Debate on con- 
sumer representation in the 
nationalised industries. 

Select Committees: Science and 
Technology; Subject; Discharge 
and filament lamps. Witness; GTE 
Syl vania Endura (Commons 10 JO 
nan.). Science and Technology: 
Subject: Transverse flux induc- 
tion. Witness; Electricity Council 
(Commons 4 30 pm.'. Expenditure: 
Soda] Services and Employment 
sub-committee. Subject: Employ- 
ment and training. Witnesses: 
Merseyside County Council and 
District Councils (County Hall, 
Liverpool, 10 aan.). 


Housing starts and completions 

BICC (full year). Consolidated 
Gold Fields (half year). Phoenix 
Assurance (full year). W. H. Smith 
and San (Holdings) (full year)* 
Sun Alliance and London Insur- 
ance (full year). 

Anglo American Securities. 
BuckJersbury House, E.C, 2.45- 
George Armitage, Dewsbury, 11.15. 
Barclays Bank, Lombard Street, 
E.C., 2.30. Carrington Viyella, 
Dorchester, Park Lane, W„ 12. 
Derek Crouch (Contractors), 
Peterborough. 12. Gronfrlar In- 
vestment Trust 11, Austin Friars, 
E.C., 2.45. Donald Marpherson, 
Winchester House, E.C., 12, 

Tavener Rutledge, Liverpool. 12. 



From Mr. ft. Mosseri. 

Sir, — The reaction of UJC 
nationals oWning blocked 
accounts in Egypt to the 
announcement by Mr. Judd, 
reported on March 22, of “new 
arrangements ” for payment of 
the sterling equivalent on 
£E450,Q00 assigned to the British 
Embassy under the 1973 scheme 
can only be one of dismay and 

The total amount covered by 
the scheme was £El$m. to be 
utilised In equal yearly instal- 
ments of ££300,000 over a five- 
year period. Clearly by now 
£EL35m>, that is, nine-tenths of 
the total, should have been used 
up, and participants who have 
paid into the Embassy’s account 
in Egypt the amounts assignable, 
and have been awaiting payment 
of the sterling equivalent in the 
U.K. for some considerable time 
—two years and upwards in 
many cases— might be forgiven 
for suspecting that withholding 
payment of one-third of the total 
was in anticipation of the u new 
arrangements,” the more so as 
until October, 1977, sterling was 
being received in monthly instal- 
ments, albeit in small amounts. 
Since then, however, there 
appears to have been a complete 

Under the financial agreement 
of 1959, Egypt received and im- 
mediately transferred £41 m. out 
of U-K. sterling balances. Return- 
able private British assets in 
Egypt then stood at £E57nL, 

which should have been returned 
to their owners within three 
months. Immediate approval 
was to be given to applications 
for transfer into sterling of up 
to £E5,000, and “ favourable con- 
sideration ” was also to be given 
for further transfers in excess of 
that sum. 

In the event, it took years for 
British nationals to recover in 
Egypt what was left of their 
assets and to receive the first 
£E5.000 sterling equivalent: that 
even now, is still awaited by 
some. The .blocked accounts — 
since 1956 — bear no interest, and 
can only be used, within strict 
limits, in Egypt after obtaining 
tiie specific authorisation of the 
Egyptian Exchange Control. 

The 1973 agreement only 
covered £Elfim. but if it had 
operated effectively this amount 
would have been exhausted by 
now. Is it fair, therefore, that 
those who participated should 
now be expected to bear a 
further loss of well over 40 per 
cent on transfers which should 
have been effected or completed 
by now, for the sole benefit of 
the Exchequer? 

The saving to the Exchequer 
resulting from the “new arrange- 
ments " in respect of amounts 
already assigned will be no more 
than £200,000 or £250,000 at most 
In relation to the total annual 
expenditure of the nation, this 
amount can only be described as 
microscopic. It Is especially 
cruel in the case of retired and 
needy small savers. 

R. V. Mosseri. 

203, Mounljoy Rouse, 

Barbican, E.C& 


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Ring Keith Skinner today on 01-625 7500 to hear lit >\\ lijliclei can help 
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Standard Chartered Mi 

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helps you throughout the world 

Head Office 10 Clements Unc, London EC4N 7AB 

Aflsvts exceed £7,600 mil l ion / 


Poor winter sales hold Grattans to £11. 8m. 

Date Corre- Total 
of spending., for 
payment dir. -: , year 

WITH SALES from its Autumn ' 
Winter catalogue disappointing . 
and below expectations «tn most 
product groups, taxable profit of 
Grattan Warehouses rose only OS 
per ceot. from £lL43ra. to Xll.TGm. 
in the January 31, 1978 year. 

Sales for the period, before 
VAT, climbed 15.2 per .cent, to 
£2 66.69m. (£L4S.52m.). 

Directors say . the eventual 
retail spending for Christmas 
came loo late to materially 
recover the earlier shortfall. At 
halfway profit was up from 
£5. 33 th. to £6.09m., and directors 
reported Autumn/W inter sales 
ahead of the previous year. 

Demand so far for the Spring/ 
Summer catalogue has recovered, 
amt the trading performance for 
the full year -is expected to pro- 
vide increased volume and profit 

After tax of 1651m. (£5.98ra.) 
earnings per 25p share are shown 
to' be up from I2.38p to 12 Alp. 

A final d-ividend of 3-802p not 
takes the total payout to 5562p, 
against 5-217p last year. The divi- 
dend will absorb £2.45m. (£25m.j. 

The directors Intend increasing 
the authorised capital of the com- 
pany from I11M to £135m. by 
the creation of eight million un- 
classified shares of 25p; to con- 
vert the 250,000 5 per cent. 
Cumulative Redeemable Prefer- 
ence shares of £1 into one million 
unclassified 25p shores, and to 
adopt new Articles of .Association. 
An EGM will be held after the 
AGM. to consider these changes. 

1917-7$ 1976-77 
E000 £000 

Sales ... 166,683 148.513 

VAT 11,1MB 11.001 

Net sate.'. - JW.73S 137.JI7 

Trading profil 12.2S3 ll.Kfi 

Interest 494 49S 

Profit before tax 21.7M 11421 

Tax 6.303 53S! 

Payable *.385 3.434 

Deferred -... 1 . 8-0 Zs319 

Net proht 5.159 5,443 

• comment 

Grattan's figures are disappoint- 
ing. In the second half sales 
growth slipped to under S per 
cent, and pre-tax profits fell by 
6 per cent. This compares with 
figures from Freemans yesterday 
showing an 18 per cent sales rise 
and a 29 per cent, jump in 
profits. Grattan has been lasing 
market share for some years — 
during the five years to January. 
1977, Grattan's share of the mail 
order market fell from around 
12£ per cent, to 9 per cent. — and 
last year it was probably even 
lower. The real blow to the 
figures evidently stems from the 
autumn catalogue which did not 
prove successful with its custo- 
mers. Though gross margins 
were held, lower sales levels hit 
the net figure and in the dosing 
half pre-tax margins were down 
to 8J- per cent. The latest cata- 
logue is evidently much better 
but that will not take effect until 
the beginning of March because 
of the carry over from the old 
catalogue. Women's wear, in 
common with the whole industry, 
was a poor seller last year and 
the write-offs in the first half 
were possibly as high as £400.000. 


Guest Keen experienced a sharp setback in second-half 
profits due to the continued recession in the steel industry 
and a marked downturn in automotive products. Figures from 
the Bank of Scotland. are also disappointing with operating 
profits only 2 per cent, higher, although a poor performance 
from the finance house subsidiary was partially offset by 
very good figures from the merchant banking arm. with 
profits over 60 per cent, higher. Lex also takes a look at 
the latest complications in BOC’s attempt to gain control of 
Air co. Grattan Warehouses’ figures are disappointing after 
the good showing from Freemans yesterday with much . of 
the blame apparently resting with a poorly-received autumn 
catalogue. Profits continue to slide at Cape industries and 
prospects do not look so bright given the dependence on the 
depressed construction industry. Currency movements and a 
poor South African market has taken its toll on Mitchell Cotls 
but Savoy Hotel has had a bumper Jubilee year. 

Even so, the next set of interim 
figures are unlikely to -look good. 
Grattan may have potential to re- 
store margins through an im- 
provement to sales but the shares 
look unexciting at 12Sp where 
the p/e is 10 and the yield 6.8 
per cent, against 10£ and 32p 
respectively from Freemans. 

Slight fall 
at Mitchell 
Cotts Grp. 

ON' TURNOVER down from 
£13332m. to £ 124.74m., pre-tax 
profits of Mitchell Cotts Group 
for the first six months to 
December 31, 1977, fell slightly 
from £4.64m. to £4. 58m. 

Profit for the 1976-77 year was 
a record £11.67m. and the 
directors state that it is expected 
that, due mainly to continuing 
lower profits from South Africa, 
results for the full 1977-78 year 
will be below that level. They 
add. however, that the attributable 
profit, after extraordinary items, 
will show an increase, albeit 
somewhat less than was originally 

Pre-tax profit for the half-year 
included associated companies 
.£131,000 (£230,090) and was struck 
after interest of £t.64m. (£1.91 m.V 
The interim dividend per 25p 
share is maintained at O.Bofi25p 
net — last year's final was 2.74?.75p. 

Tax took £2 .46m. (£245m.) 

leaving net profit at £2. 12m. 
(£2. 19m.) and the amount attri- 
butable came out at £L72m. 
(£1.73m.) after minorities. 

The group's activities include: 
engineering, freight transport 
and storage, commodity trading, 
vehicle distribution and agri- 

• comment 

The small setback in Mitchell 
Cotts’ first half is more than 
accounted for by the stronger 

pound which . lopped off around 
£500,000 from taxable profits. In 
spite of soma improvement in the 
-U.K. engineering activities, over- 
seas earnings still account for 
around four-fifths of the group 
total. But currency influences do 
mask a trading picture which is 
far from 'exciting.- South Africa, 
which last year, contributed over 
two-thirds of the group’s' operat- 
ing profit has been, hit by 
political and economic problems, 
although this is unqualified. 
Other overseas markets, however, 
are looking more promising. 
Losses have been eliminated in 
Canada, and Australia, where 
Mitchell has been building up its 
mining plant orders, is now profit 
making. Group profits for the 
full year are likely to come out 
at around £9.5tn., compared with 
£11.7m.. which puts the shares at 
44p on a prospective p/e of 0.6. 
At present levels the shares yield 
11.9 per cent, on a maintained 
dividend, covered nearly twice by 
prospective earnings. The rating 
is likely to be pegged until the 
group becomes less dependent on 
South African markets. 

£2m. by 

DESPITE A decline in ■ second 
half profitability, Greenbank 
Industrial Holdings, the engineer- 
ing and property development 
group, finished 1977 with a record 
pre-tax profit of £2m . compared 
with £L5mr last time, on sales 
ahead from £7.43m. to £8.33 m. At 
mid-term, the surplus had doubled 
to £LlSm. 

The full year result included 
foreign currency gains amounting 
to £462,145 (£162,173), but was 
struck after . depreciation of 
£98.827 (£74,747). Tax took £lm. 

The dividend total Is effectively 

raised from an adjusted 1.5115p 
to 1.675p per lOp share, with a 
final of 0.85p net. A two-for-five 
scrip Issue is proposed. 

Pursuant to the agreement of 
February 2, 1976. the company is 
acquiring a further 10 per cent, 
of the capital of Pipe Profiling 
Equipment for a nil consideration. 
Greenbank now bolds 84 per cent, 
of PPE, which showed a further 
loss of £97,842 for 1977. 

Upsurge to 
peak £2.7m. 
for Savoy 

in midway profit from £26,000 to 
£873,000,. the Savoy Hotel reports 
a pre-tax figure more than 
doubled from £1,237.173 to a peak 
of £2,686,174 for 1977, which the 
directors warn might be difficult 
to repeat in the current year. 

The directors state that the 
exceptional business done in the 
first six months was a major con- 
tribution to the result, as 
normally this part of the year 
does not yieM a profit in any way 
comparable to the second period. 

A one-for-ten scrip issue is pro- 
posed, and the dividend is raised 
to the maximum per nailed 1.117p 
(lp) net per lOp share, absorbing 
£287,770 (£243,444). 

1877 1976 

I ' £ 

Trading profit S.SBMTir 3.(177.830 

Maintenance li-COl-SB 1,718.771) 

Depreciation, etc. — 323 JS0 298.173 

Dividends and Interest 73,049 44.903 

Interest payable 3H3.4S3 463.713 

Profit before tax 2.MV174 1237J75 

Tax 719,691 3W.CT9 

Net profit 1.960.4S3 836.494 

Minority Interest 8.193 4,472 

Exiraord. debits . — *£03,656 657,285 

Available 7.134.634 274,737 

Dividend 2S7.TTD 245,444 

From capita] reserve... .$01,618 1-19-580 
Retained - 1 C$8,512 1,230.573 

7 Includes provision for exchange loss 
on foreign loan of £303.000 aod goodwill 
written off an acquisition of subsidiary 
at £490.394. 

• comment 

It was clear after the first six 
months, when profits leapt from 
£26.000 to £873.000. ■ that Savoy 
was heading for an excellent year. 
The Jubilee was a significant 
factor which boosted occupancy 
rates, but It obviously makes it 
that much harder for the 
company to make anything like 
as good a showing this year. Its 
London base makes it dependent 
upon foreign tourists and these 
have tended to decline in number. 
The recent weakness in sterling, 
if It continues, may revive some 
interest by overseas visitors but 
the American tourist trade could 
suffer from an even weaker 
dollar. Also a general election 
has. in the past, tended to 
depress trade. So the latest figures 
may well represent a peak. At 
78p the p/e is just under 10 while 
the yield is only 2 2 per cent. 

.... 5.45- 




int. 0.55 












— 085 








June 1 









858 x 


. 2 A 

V- : Financial ' Times Wednesday April 

>i> I 

- . . ^ , payment 

Bank of Scotland “ “ 

Wm. Boulton '.....tot. 

Cape Industrie* .. 

Grattan Warctoa 
Greenbank Iod. 


Harrison and Sons 2.71 

Thns- Jonrdan 1.9 

Jove Investment 2nd tot. 

Law Land .-. 

Mitchell Cotts Grp. 

Peters Stores inL 

Richards (Leicester) 2.63$ 

Savoy Hotel 

Scottish Metropolitan int. 

Watts, Blake, Bearne ... 

William Yates „. 2A9 

Zenith Carb ; 4.4 

Dividends shown pence, per share net except where otherwise stated. 

* Equivalent after allowing for scrip issue, t On • capital 
increased by rights and/or acquisition j Include s additional 

0.0353p for 1976. fi Gross throughout. 

cuts GKN to £72u 

IB - 

May 25 





July 11 



. 232 


June 5 





-M«y 30 


■ — . '• 

• I- 


May 25 









Aug. 21 


- -• 

- L77- 


May 30 




289 . 

- — 

2.72 . 




* — 




Mining side lets 
down Gape Inds. 

REFLECTING a sharply-reduced 
contribution from its mining divi- 
sion caused by weakening demand 
for asbestos fibre, pre-tax profit of 
Cape Industries fell by 17 per cent 
from a peak Sl-Utm. to £2LS6 zxl 
for 1977, on ee sternal sales higher 
at £155 .3 7m., against £1 33.11m. At 
half-way, the surplus was down to 
£0.33 m. at £7.03m. ■ • 

The building and automotive 
divisions achieved further sub- 
stantial increases in full-year sales 
and profis, despite generally diffi- 
cult trading conditions in the UK, 
state tiie directors. 

After tax of £2 .46m. (£L87m.) 
stated earnings are little changed 
at 39. Ip l3S.9p) per 25p share. The 
dividend total is stepped up from 
7.3474 p to tbe maximum permit- 
ted 82064p, with a 52Q2p finaL 
Dividends absorb £L93m. 
(£L77m.) and after increased *x- 
tra-ordinary debits of £S.18m. 
(£0.34in.). retained profit dropped 
from £7.23 m. to £4-24m. 

The directors add that as 
planned. 1977 capital expenditure 
was at the high level of £L4 hl and 
the group is well placed to take 
advantage of any upturn in the 
economy. ^ 

1977 1971 

£600 £900 

Turnover 15SJ88 13S.m 

B nUdUm & insolation 82,823 65.898 

Automotive 4 engineering 4SA79 34.097 

Mining .......... 31.626 3071 

Less inter- sales — — X56T XSS 

Trading profit UJB 16.336 

B alldins & Insolation _ 3.537 4,634 

Automotive tc entdneeiS- 2.418 1.748 

Minins - 6,024 9J6S 

Share of assoc, losses SB 238 

Interest 2,054 1X94 

Pratt before tax U.8CT MW 

Tart 2-453 4JBS9 

Net profit 9-402 9.33S 

Extraord. debits 3.164 337 

Anribotable - . — - • 6-23$ 8JS8 

Preference dividends 9 9 

Ordinary dividends 1.970 1,784 

Retained — . 4238 7,225 

1 Adjusted for EDI}. 

• comment 

Cape Industries’ first half short- 
fall of almost five per cent in pre- 
tax profits has been followed by a 
29 per cent downturn .in . the 
second six mouths. This is due to 
a weakening demand for' asbestos 
fibre from the depressed con 

For 4 The Complete Picture', a brochure 
describing ail our property services, 
write to - C. N.G Anting A.RIC.S. 
Richard Ellis, 64 Cornhili, 
London EC3V 3PS. Tel: 01-283 3090 

C har te re d S u rve vo t 

stroetkm industry, .and . the 
important; mining division share of 
trading profits has dropped from 
61 per cent, to 43 pec cent of 
total W5tb the rons traction indus- 
try yet to show . any- marked 
improvement, -there is Httie pros- 
pect of any. recovery here for 
some time. Meanwhile, Cape’s 
other activities are buoyant. 
Government legislation sad con- 
cern for energy conservation has 
boosted the bidding and insula- 
tion division's profits by a fifth 
while the automotive ■' and 
engineering divirion (friction 
materials) heH uj> well -hr spite 
of pro duct ion diffdirities and some 
market weakness in • the second 
halt Net borrowings are £&n_ 
hlgher at £20m. and stocks are up 
a quarter to £33m.' bat interest 
charges are only 8.4 per cent 
higher, thanks mainly to lower 
rates. The shares, at lISp, are on 
a p/e of 2J9 while the yield is U 
per cent covered 4£ times. 




HIGHER SECOND half.' taxable 
profit of £337,786 against £248,621, 
boosted the full- year figure of 
Richards (Leicester), the struc- 
tural and mechanical engineering 
and ironfounding group, from 
£489,621 to a record £860,788 for 
1977. Turnover was ahead £L.63m. 
at £5. Tim. 

When announcing midway 
profit of £323,000 (£243,000), the 
directors said that with satisfac- 
tory order books, the second half 
figure was expected to be similar 
to those reported provided tuH 
production was maintained. 

Stated full year ' erirnings 
advanced to 17p (122p) per 2Sp 
share. A final dividend of 2.5987P 
lifts the total to the maximum 
permitted 3 .8087 p net, compared 
with 3.4453p for . 1976. which 
includes an additional O.OSSSp on 
ACT reduction, to be paid with 
the 1977 finaL 

.Tax takes £320,897 (£245,623) 
and dividends £76,880 (£68,200) 
to give retained profit - up from 
£175,798 to £263,009. 

W. Boulton 
first half 

A SECOND HALF downturn of 
£25 Am. to £3l54m.'has left tax- 
able -profit of Guest, Keen and 
Nettiefolds down from 197.7m. to 
£72Jhn. in 1977. Turnover was up 
from £L5bn. to £L64bm . 

Directors say the turnover 
increase reflects lower sales 
volumes as it is not equivalent to 
the average inflation across the 
group. ■ 

. They, say that as indicated qt 
half-time, when profit dipped from 
£&12m. to £40-76nL, . there was a 
severe downturn on- those areas 
concerned with steel making, pro- 
cessing- and. distribution and with 
supplies to the braiding and con- 
struction industries. 

' In tbe second half automotive 
operations, which had maintained 
their .position in. the first half, 
suffered increasingly from labour 
disputes internally and at cus- 
tomers’ works -and other com- 
ponent suppliers. 

In Europe, some flattening off in 
demand .was experienced. 

And. tbe first months of 1978 have 
continued in the same pattern as 
at the end of 1877. 

■ Although vigorous management 
action is being taken to. improve 
the competitive position of the 
group, the outcome for 2978 will 
depend largely' upon the extent 
of any improvement In trading 
conditions as the year, progresses 
and tbe success of any measures 
taken by governments to 'stimulate 
economic, recovery. . . 

There are still no signs of any 
upturn in world steel demand, and 
while the directors look ' to 
increasing operational efficiency to 
the new rod mill and other recent 
investment areas, indications are 
that noD'-aufomotive operations 
wfll fare little better, than hi 1977, 
although ■ distribution . operations 
expect some improvement in 

Automotive . component com- 
panies/ including those to Europe, 
expect to do little more than 
maintain their overall 1977 activity 
levels, although there may be a 
small improvement to the UK. 
passenger and commercial vehicle 

There are signs of. some fall-off 
hi .the European component opera- 
tions which in recent years have 
made substantial progress. Out- 
side Europe, economic conditions 
in GEN’S main operating areas are 
generally poor. ■ ■ • • 

GKN’s trading surplus after 
historical depreciation of £35.1m. 
(£31 An.) was £1 02.6m, compared 
with- £123 ,6m. GKN has charged 
additional depredation of £19 Jm. 
(£l5.7m.) for inflation. Induding 
associates the total additional 
amount of depredation charged, 
byt on which no tax relief Is 
available. Is £2L7m_ (£17m.). 

. The tax charge is £31.7m. 

**“■/. and earnin g, , 
— s are shown atUX ? 
Earnings before the 
depredation charge 
39ip.(56.5p) k Tr^ 5 

Pending the receipt fci 
West German SapreE« -q- 
the toll Judgment again*? 
chaae of a further aotiii 
of Sachs AG, GKN hai 
an appeal with the Wn! 
Economics, “a recpgnto 
separate procedural Am 
dealing with pnai-™ 1 . 
aspects.* 1 -■ 

■ Total exports from th 
including sales invoiced 
purchasers for oversea,, 
mere rose 24 per cemrS 
in the year. Also, oven* 
pacts and income from 
how and technical aid an, 
accounted for £S6m. and - • 
exports are estimated at-» 


Primary metal n 
accounted -for fasm, or 
-cent^ of total turnover « 
or 11 per cent, of the- 
surplus. Automotive con 
accounted for £740m. * 
cent) and «7m. (56 pe, 
wholesale and industriri 
tion £352m. (19 per cm 
£13m. (16 per cent); and 
and civil engineering 
and - services £485m (S & 
and £3 4m. (17 per cent) 
group sales were £221m.' 

UiC companies coi 

£1.15bn. (£l.(Ebn.) of ri 
£52iim. (£69flm,) of tiie • 

On capital increased 
oue-for-Eve rights issfe 
'dividend of 10Q58p (8.04 
per £1 share is propose 
the total for the year to 
(12.45l6p). The increase 
approved by the Treasnr 

Directors will be seekh 
holder approval for a sa - 
lated share option seb 
employees and a shan 
scheme for senior execut 
aggregate ILSSm. nev 
would be made available 
years for the schemes, r 
ing 7.5 per cent of tb^-jr 
share capital. EachschwJrS 
be allowed a mxxfintm 5>" 
of current capital. , 

Turnover — 

Depredation — »*».. 
Tmlinsr sorpte ^ 
Addttlinial depreciaxiMi 
Invest, lnasne. in. 
receWatoe ^.. — . 

Interest ohsmeg , 


Pratt before ten 


To minorities 

BBra-vnL tosses ■ 

Attributable 1.: 

Dividends ; 

Retained — 

t Adjusted for EDIK 

‘ See hex 

Watts Blake Bearne 
higher at £2.7m. 


PRE-TAX profit of -William 
Boulton Group was ahead by 
£80.524 to £575.780. for the six 
months to December 31, 127? on 
turnover up from £8. 42m. to 
£9.Q9hl - . - 

Tbe interim dividend is stepped 
up to 0.55p (0.5p) net per lOp 
share and also proposed is a one- 
for-four scrip .issue— last year’s 
final dividend was 0.8646p paid 
from profits down from £L13m. 
to £I.04m. 

Tax for the six months takes 
£205,000 (£267,000) and minorities 
£10,087 (£4,080). The amount 
attributable came out at £360,693 

The group manufactures 
machinery, is a- general engineer- 
ing concern and . high duty 

WITH SALES ahead from £14J8Qzn. 
to £17fl7m. pre-tax profit of 
Watts; Blake, Bearne and Com- 
pany Increased from £2 52m. to 
£2B7m. in 1977: 

Of sates, the UK. accounted for 
£4.4An. (£3,73m.) and export and 
overseas sates £13jl6kzL (ffiUfim.). 

Trading profit was £kn. 
(£3J8m.) with depreciation of 
£L27m. C£L05ffn.), profit on the 
sale of investments of £74,000 
(odl) and post -invoice currency 
losses totaling EL4QA00 against 
profits of £385^000. 

UK. tax took £878^00 (£997,000), 
oversees tax £92,000 (£64,000) 
and the tax equalisation accounts 
£356.000 (£28di000). At hallway 
profit was £0.78m. (10.77m.). 

Eanungs per 2Eg> share are 
given at I4.79p (1554p), with 
attribute e profit ahead from 
£I.l9im. to £LMm. 

. A final dividend of 4.091p gross 
takes the total from 3J2(BlSp gross 
to 6^6373 p per share, and a one- 
fotytwo scrip Issue is proposed. 

Mr. C. D. Pike, the chairman, 
says that in spite of the general 
anticipation of a decline in world- 
wide trade, this ball and china- 
clay processing and selling group 
hopes to continue to maintain its 

He says the group is tightly knit 
and weH prepared for whatever 
fluctuations may He ahead. - 

.The investment programme- of 

some £2.Sm. far 1978 l. 
cation of Its confident 
future, -he adds. 

' il 

« comment 

Watts, Blake, . 

results last year werefi_ 
mid-term expectations. - 
profits were up 28 per 1 ., 
the 18 per cent rise 
reflecting a volume li 
about 5 per cent. Both 
overseas markets sh< 
anticipated buoyancy- * 
the currency windfall i 
in -1976 the company 
exchange losses of £1- 
year, which left pre-t 
rather flat Mean* 
company plans to in- 
£750,000 in its German 
£1.75m. in the UK ' 
indicates long-term con 
immediate outlook is 
gradual rate of growtt 
tbe strong overseas coi 
reduce the dependenc 
depressed UK buildi 
The shares were unc 
l45p yesterday, which g 
of 4.5 per cent and a 

equity & it 

In our comment on 1 
Law Life Assurance S 
terday the dividend co 
have been 1-3, and 
covered as stated.- 

Yearlings rise |% 

turns in 

DESPITE A fall in second-half 
profits from £691,000 to £437,000, 
Zenith Carburetter Corporation 
reports fuH year -1977 taxable pro- 
fits ahead from Elvira- to a re- 
cord £1.32m- on turnover of 
£11.76m. against £10.73m. At half- 
time, the directors said that the 
reported level of profitability 
would not be maintained to the 
second half. * 

Profit for the year includes 
income from trade Investments, 
quoted investments and deposit 
interest of £486.000 compared 
with £495.000 last time. 

Earnings per 50p share' are up 
from 9.7p to I0.8p and the divi- 
dend is increased to 4.39775p 
(3.9375P) net 

.The coupon rate on this week’s 
batch of local authority one year 
bopds has risen from 7i per cent 
to 8V per. cent at par. The bonds 
are- due on April XI, 1979. 

This week's issues are: 
Corporation of ' London (£lm.). 
Borough of Hove (£im.), Renfrew 
District Council (jELul). City of 
Glasgow^ District Council (£210.), 
Kiridfies Metropolitan . Borough 
Council (£}m.), St Helens Metro- 
politan Borough Council (£im.), 
The Borough of Eastleigh (£4m.). 
Borders Regional Council (£im.), 
Etterick-and Lauderdale . District 
Council (£5im.), Beverley Borough 
Council (£im.). City of Lincoln 
(££n-). Borough of Scunthorpe 
(£}m-). Cheltenham Borough 
Council dim.}. Sefton 
Metropolitan Borough - Council 
(£$m.), City of Wakefield Metro- 
politan District Council (£2}m.), 
Dudley Metropolitan Borough 
Council (£jm.). Borough of 
Cheltenham (£Jm.). . 

West Oxfordshire District Coun- 
cil has raised ££m. of 9| per cent, 
bonds dated April 2, 1980. 

Surrey Heath Borough Council is 
raising Sim. of 10} per cent bonds 
at par dated April 1, 1981. 

Four-year bonds carrying a 

coupon of 1Q| per 
maturing on March 31, 
have been issued 
Borough Council (lim.) 
Buchan District Coun 
Basingstoke District 

-.Variable rate five-j 
dated March 30. 1983, 
issued by Central Reg 
til (£lra.), Strathdyd 
Council (Him.), Medw 
Council (£}m.), Burnlt 
Council (£Jm.), Boil 
politan Borough Cour 
South Cambridgeshir 
Council (£im.). 


Pressac Holdings is 
to increase its capital 
which £400,000 will be 
cent. Cumulative 
shares of £1 each, ai 
scrip issue of one 
Share for every tei 
shares held. 

CH— 93% 

CH Industrial's £41f 
issue on the bass or 
at 25p each has be« 
as to 92862 per cent 

don't WM « .«-■ ** 
your £tna, old man; 

Just your - 7£> 

partnerdi^needs to be carefully m 3 * 1 


If youwant a secretary vrtio’s 
we're ttie people younsedt 0 c ^ Dla ^ 
We also pride omsefoes an hawngme 
temps in the City. ■ 


eam x 



• !^^sh 

Financial: 'Pfeies Wednesday April 5 1978 

’ rises 

o to reach £27.6m. 


s^°^L, ( ar £1 !hare 

«r. V;** An ^t :net 

^ .reported TiyJRmk of Scotland for 

_ifc Ihe - - - 

Ait halfway when profit was up 
from £178,283 to £211,342, . direc- February as iotr *'** .. The. directors’- W that for tors said demand for forgings 
in tiu'cWiid w«i. ' Tor comparative purposes the pro* was static while casting orders 

A n t£*2S+ ■ - operations vious year "figures Have been were Improving and the outlook 

interest earnne* were adjusted by the deduction of w *? encouraging. 

£lm. additional pension provision ' Turnover for the year increased 

before arriving at operating fr°m £2.79m. to £3.43m. and the 
to-J > w- “ average oase i.ute profit. 'The overall charge for **®K is subject to tar of £127,001 
J *Zr mm 11-55 , per cent to 7.85 per pension In 1878 is sHghtly greater (*W5,931), which leaves net profit 

T?:’ 1 $£L3S ai P l * ** ' we after making this Xstment « £280.331 (£208.575). 

Cv - ™ SSKFVL®* resources. WnX .Earnings per ; 2Sp share 

Thos. Jourdan 
falls to £0.5m. 

DESPITE A slight mid-ferm rise contracts arc due to he exchanged 
from 1210,000 to £223.000 Thomas for the sale of the other. 

Jourdan, investment holding 
company, finished 1077 with . 
taxable profits Of £500,227 com- F^-artt before i« 

pared with £007.800 for 1070. Mi*. Tax 

Archie McNair, the chairman, says Nc« wo<>> - . 

In his annual statement with E*'™rdU.»n- cfer* 
accounts that the company faced 

. ------ -higher but directors- say they calculate tho 

TV- increase did not. match the profit Increase would have boon 
ir3Tfi s * e ? pEIlses - The outcome for of the order of IS per cent 
i tfia. ; the bank was a £1.4m, fall in _ The : profa Improvement . by 

Ltheh ..Bank came 
from increased -volume 
areas of its business, while 

s- tV^y prDQt * lhe directors report British 

*■ finance house subsidiary; 

^TNorth West Securities. taSSaSi. in ?“ 

NWS came 
'lower cost 
continniDg low 
' consumer 

•»* ! ,n£S t .i ln fr re ff earnings suffered its profit with the .other half 

£! ; ;~ , 1 b severely jn the second half but coming mainly from the commer- P 01 " 1 * 

-..1 ‘ SSS™” 8 * 0 ? 8 “^proved, and the chd and corporate divisions, the' 

‘ expenses was lairly directors state. 

The amount , ... . . her 24, 1977,- half- year, 

debts in the first ' nJI be treated as an Turnover ■ was • ahead from . 

proved to be more “wiated company ^ in future, £2.74m. to £3J5m.. and while sales „ 
cent. of the 
:■ . finally required and North 

s’ Securities contributed more 

severe restraints in some 
countries and continuing trade 
recessions in most. Last year he 
said that expanding sales was 
going to be difficult. “It has been 
and the tide of recession is still 
running strong, but wc arc 
making headway.’’ 

Excluding IV. tfuncey and Co., 
which ceased trading during 1977. 
group turnover is shown ns only 
slightly down from £4.G9ra. to 
£4 55m. 

Stated earnings per lOp share 
are 8.94p (7.94pi and the dividend 
is increased to iL887jp (2.6p) with 
a final of i.S985p net. 

Sales of Mary Quant merchan- 
dise. upon which the group 
receives royalties, have again 
increased in terms of volume, but 
ihis has not been fully reflected 
In turnover. Mr. McNair states. 
£121.689 to £384*83 In tho Decora- discrepancy has 










aft.142 n 


:r i;* 





39.1 « 





Regional development grams of 
£7-523 (£M),089) have wen cre- 
dited to reserves. 

at Peters 

AS FORECAST in the annual - re- 
pre-tax profit of Peters 
rose substantially from 

discrepancy has arisen 
because there Is a large element 
of overseas sales, and the .sirens th 
sterling has distorted the 

« , second half. 

‘■‘Derating prolU 
’ assoc*, 


or .Virlbaub) 

. -r;,;. VT’llf Dividend* 

. 1" '■•'I b»<i‘ U-arln* 

5*;. In the event. 

1977-78 lpre-77 

£000 OOO 
HAT 29JM- 
- 7W U* 
Ttjm 7KTJ* 
13.808 tf>W 
am sts 
J3.J jl UJM 
xs37 aim 
flats . &912 

the Ermin" tjrnfiL 

-see leix 

Second half 
slowdown at 
James Dickie 

the first half. 

But they feel that if existing 
trends are -maintained profit- 
ability should continue to in- 
crease. For aR last year profit 
totalled £149.073. - 

Tax ’ in the first half took 
£224.000 (£83,000) and earnings 
per share are shown at 3p against uie luiuro 
1.8p last time. 

The interim dividend 

further reorganisation or its 
manufaciuring and costing 
methods has resulted in inerensed 
margins. Profits therefore 
improved considerably, and the the year 
chairman believes that the basis cent, of 


Interim lUvidirnd — 

Final dividend 

As a result of & change in 
accounting policy relating to 
deferred tax the directors of 
Jourdan have decided to limit the 
provision concerning stack relief 
to a reasonable level, at £40.820 
compared w'ith £34.132. Had the 
full provision been made the trims 
fer in the current year would have 
been £164^40 ( £78.350 1 
A divisional analysis of turnover 
and pre-tax profits show s; royalties 
£0-26rn. (Kk23m.) and £0^4m. 
1 10323 m.); marketing £1.43m. 
tXl.Sam.) and tii.l2m. (IO.lHm.1 
and general industrial £23im. 
(£3^6m.) and £0.l5m. (EO.lllm.i. 

At the year end there was a 

decrease in net liquid funds of 

10.35m. against a £0.3Sm. increase. 

Meeting. Inn on ihe Park Hotel, 
W., on April 27 ut noon. 

• comment 

Thomas Jourdan anticipated an 
upturn in business from the oil- 
rich Arab and African markets, 
but this did not materiuli-e during 
1977, and profits slipped by 18 
per cent. Cutbacks in industrial 
development in those countries 
meant a shonrall in budgeted 
levels of exports— down a litih on 
to account for 44 per 
toial sales. Simplon 

on which this company now ( floodlighting eouipmen: mainly 
onemofl, provides great scope for Tor The construction industry) 

seems to have sufiTercd most with 

JBfSJSftt? WSS SS.“ 


Company (Drop F< 

- tr.idp — — down from £402^08 to 

‘ inr *-ie aw Tlle net lolal dividend Is raised -in 1977. 

l‘ 7j ne- ‘ - 

A downturn in second half earn- The interim dividend is up taring started with a iow th |' d ” of nrofitVi slinned” sli^hiK- 

from £228^13 to £184.990- has from OJp net per lOp share to order book, but traded well to end ta , a th( ‘ £ a mo n, net ion or 
pre-tax profit of James Dickie lp. which was the total payout the year with a reasonable profit. hf4cr wsts in deve"on 

*«-- » — Ings) last year. he says. ih-. n nn»- 


last year. 

The company, a leisure wear 
retailer, has close status. 

he says. 

I p ? r »nt o' 

l m 

c **-.’i*ai CMI^ 

Ransomes Sims expecting 

.1 v'. • 

•» Wore ux 



jfirr.e LI -.r 

1 SALES PROSPECTS of most : foundry, which will provide lower As reported on March 1. pre-tax 
; products of Ransomes Sims and cost metals for the group. - Sales profits jumped . by 74 per cent 
: Jefferies for 1978 are encouraging, 1 of castings to .outside customers from £0B4m. to £1.47m. .In 1977 
and the directors’ .will be 1 reached 20.5m. last' year, and ihis on sales of £lL64na^ compared 
. disappointed if the results for the. practice will continue: . with £7^ 8m. The dividend is_effec- 

; year do not show farther improve- r : In; Australia, prospects are tivoly raised from LQlSTp to 
ment on the 1977 figures; ;Mr. pr omising for a .continuation of 1.13215p net per op share and a 
Geoffrey Bone, the chairman, says the progress of 1977. while- in one-for-ten' scrip issue It a so pro- 
See In in his annual statement South Ulrica there .are no signs posed- 

He says' tbht the company's of imminent Improvement Mr. Wardle points out that 1977 

ability to maintain profit margins Ransome France is expected to proOts were 44 per cent, of net 
remains uncertain while UJ\. reduce its., loss through increased assets employed. Shareholders 
inflation continues at a higher throughput pf fafm machinery funds have increased from £2.4m. 
rate than in the countries -of its ana - the recent- takebver of its to £3J»m. 

chief competitors. . - - . taw machinery . importer/ MetaIrax spent ^g^ooo on 

There is some prospect of distributor. ' ?■'.• - r\ , . • capital investment in 1977 and 

improvement in utilisation of tin - During’ the year Ransomes .1279,600 on the recent- purchase 
-r, factories, which is another factor properties, .in the- - U.K. were 0 f Bacol Industries despite these 
1 - --j»i * its ability to revalued with the £83.7m,j surplus two very substantial items of ex 

costs In develop new 
a; i. , M j« n markets than any slackenine of 
uespue demand for its principal product. 

con 'j45 0 P s • at -«°I?ni- ^°U UC n} the inner tubt? 1 >' re snlicrr. which 
wd^ m ln«asmg ito share of has f{rm markt , lrS in lhc third 

the i UJv. marketj riRmfirantiy and „. or ] d Meanwhile, royalties from 
made a unfal P^ 01 - ?. aI ^ sales of Mary Quam branded 

remained elusjve. although il is p roducts continues to provide a 
hoped that the «lforts being made 5te .*iclil^ increasiny income, and 
will soon be reuarded. Corby should da well with its 

Simplon .found both trading dotnestic trouser presses when 
conditions in its existing ro a rkels MMumer spending rises. At 36n 
and expansion uilo new territories th - «>. nPM are on a n *• or t R 

diffle,/ 1. U*» ^‘7^5“' Whilf aTsield i °li.l 
the cbairmAn feels it did well to 
achieve substantial sales and pro- 
fits, although both were dis- 
appointing in comparison with 

• The hoped . for recovery at 
Muncey did not materialise and 
the Board therefore felt it prudent 
that the company should cease 
trading. This has now been done. 

to £0.39m. 


year to 


. . loss of 

the chairman says, and full pro- Investments for the 
vision has been made for all September 30, 1977. was reduced, 
closure costs in an extraordinary excluding subsidiaries sold, from 
charge of £37,172. This comprised: £225.436 to £118.006 and after a 
closure costs £28,943; loss on sale much higher profit on sale of 
of property £91,813: loss on investments or £514.970 against 
revaluation of property £50.993: £55,185 profit emerged as £362.024 
profit on sale of other fixed assets compared with a loss of £179,762 
£23,873 making £147,676: transfer after tax of £4.940 t £9,311). 
from capital reserve of surplus on Operating loss of subsidiaries 
previous revaluation of properties sold, was up from £24389 to 
£142,808: loss on revaluation of £147.611 and after a release of 

improve^ return oncapttai and pentUfare gearmg is still minimal. by sub _ £54,440 on part of an exceptional 

profitability. . ■ . . re.vdtwtUMi m Australia. priced _j&e saddfc,.,,:. ; sidiarv £79J49 covered by the provision for exchange loss on 

• comment ' n,e eIectrie,8niQk=^vi^a» of * ^ £80,000 surplus, v , ^harefiplders. fie- states, can s ^ uary co oy “ -F vliIon iar - - 1D ^ 


, Z -Jk- i£”5R S USSES 

... improved hooj.jraj of dmdend - tegislatl0n ** properties cost of overseas rights £355.622 l£t time, and an extra- 

^ ^ 5 the taC ^^ £25Sm. (£2.&. >^^^354.900 . Meeting, Edgbaston on May U £ ^ 02 - . . (SSo« d proflt' fo rto^yMrrame 

’ :?ls machines division prospects are^ (£24,000) After additional at 11.43 a.m. ’ One factory has been sold and i»M04i. prom for the year came 

t *- ■ > r- s bright - “ r ’ depreciation’ - ’ of^ £453,000 

-• . :r=5- The harvesting machinery. divi- (£455,000), a cost bt'iales adpist- 

.* :• -p: rer.’. stsiori order book Is, however, below, meat of £2.1tn. (£?-43m.) and a 
; r.iTU’J \ last year's opening level and dlffl- gwrhtg adjustment . of. £0.ft5m; 


:~i eirrv: 

: :;:«K?-eult trading conditions’’ are (£0^9m.). . • . ’ 

■.^'-— expected. Last year, sales' of ibis Aomunts show a rise 


-r.e division 

in net 

rose 33 per cent, to currant assets^ from £SJm. to 
but production . was in- ^12.43 bx, with the reduction of 

out at £234,712 against a loss of 

Earnings per 20p share are 
shown as 5.B8p (I lip loss) and. as 
last year, there is no dividend— 
The London Life Association, an improved its reversionary rates as the last payment was a _0.Jp net 
mutual life com- well for 1977. On 'assurances and interim tor the l9<4-7a IS months, 
annuities it is lifted to £4.70 per 

Bonus declarations 

old-established mutual life com 
pany, :has decided to introduce 

-.:j !* 

,-tuffident fa m eetdemand, ’ with “bank ^overdrafts from £6.14m. to payment of- a terminal bonus on cent, of the sumasaured (or basic 

-.jars*, Jz 

not offer acceptable deliveries fby. . .. , 

- -cGfCthe 1077 season potato -imd sugar Meeting; Ipswich. May. 5 at 

■.■*■■■* p.m. 

; 7'. - ;. „ T -c VJi. beet seasons. 
j Orders in the tilling equipment 

r . i'.’v division, are reasonable and while 

’.f a?.: trading conditions "aie expected 
"j-.eis.Ti'- to be more, difficult this year*.- 
■ '--^“directors are expecting tp ..con-, 
‘"■-■tinne growing In Europe and to 

•-I- ' ■A"''*'- -..f z improve the 1977 performance. 

•" -Work has begun on instaffing 

-Ji: electric 

inelting facilities at its 

MetaIrax sees 



assurances this* will apply when 
the policy ^becomes a death or 
maturity claim and on annuity 
contracts when, the policy vests 
and the annuity . or pension 
becomes payable. 


uir e «g; 



Capita/ Loan Stock Valuation— 
4th April, 1978. ' 

The Net Asset Value per £1 of 
Capital Loan Stock Is 17l.76p, 

Sccuride* nluid k ip.Mdle .Btarhet-' 

MetaIrax (Holdings), says the . Change. . Primarily, the unprece- 
group started the current year. ..dented volatility in equity 
with extremely strong order books ma^ets in recent year? was felt 
and- first half results should be inhibit the practice used up to 

at. record levels. He views the 

now of -increasing the level of 

whole year with confidence and,. Mversionarv bonus by ' taking 
llthough he wouJd be u ^'.' cre< jit f or .. unrealised capital 
realistic to expects repeat of last flDDrec intion 
years growth, he' forecasts sub- appreciation. 

stantial farther progress. 

"But the company has . also 

■ =s S 

*- ' ; ■V-=,'-, £ jr 


r> <*',7^v(^ 

* 4j ’ - 

•:cc* ' 

from £4.60 per cent, in 1976. The 
terminal rate .Is -fixed at 35 per 
cent of attaching bonuses with a 
maximum of 45 per cent, of the 
sum assured. On simple bonus 
pension business, the rate Is lifted 
i,,,. t0 £3^0 per cent Of the basic 

5ss5i bSi/ Sm‘b,’ l » 


Lite E uofiits Jp>f ® > of redaction under the 
° t WA d| °hni^ Ie hfiBn m a redaction of premium series. The 

in hia annual statement Mr. number pf factors influencing the {^S^tum’aasoS for^eaS com" 

to make this com * 

The intention is that terminal 
bonus rates will move, to reflect 
changes in market, conditions. 
They will .be reviewed twice, a 
year in November and May. 

The Scottish Amicable Life 
Assurance Society bad declared 
substantial increases in its rever- 
sionary bonus rates for the three 
years to April l, 1978. On ordinal? 
assurances and deferred annuities 
the new rates are £4^5 per cent, 
per annum on the sum assured or 
basic annuity and £5.25 per rent, 
per annum on existing bonus 
additions. The rates at the 
previous triennium were £3.80 per. 
cent.' and £4.80 per cent- respec- 
tively and the latest Interim rates 
were £4 per cent- and £5 per rent, 

On Ftexldowments (Second 
Series) the bonus rate declared 
for the first time is £8.75 per cent 
of the sum assured and on Flexi- 
pennon and Superannuation con- 
tracts (also declared for the first 
time) it isJ4 per cent of the basic 
benefit. On group pension con- 
tracts the bonus rate is 14.75 per 
cent on the. benefit secured 
including -past bonus additions. - 
The interim rates have, how- 
ever. been pitched somewhat 
lower tban these rates, . On 
ordinary assurances tWy are £4.10 
per rent, and £5.10 per cent 
respectively. For Flexidowments 
they are £3-75 per cent per 
annum of the sum assured and £6 
per cent., of attaching bonuses. 
For Flexlpension - and Super- 
annuation It is £4 and £6 respec- 
tively. The terminal bonus is 

Gresham Life Assurance Soc- 
iety, an associate company of 
N. M. Rothschild and Sons, has 
declared unchanged bonus rates 
for 1877. Ofi the- new scries in- 
dividual assurance contracts, re- 
versionary bonus rate remains at 
£3.25 per cent, of the sum assured 
and ettaching bonuses— a rate 
first declared In 1975. On the old 
series the rates vary from £255 
per cent, of the sum assured to 
£7 per cent. On- personal pension 
policies the reversionary bonus 
rate is kept .at £3.40 per cent of 
the basic benefit and attaching 
bonuses. - , , 

The company Is .also maintain- 
ing terminal bonus- rates, payable 
on death or maturity, at the same 
level. For assurances on the new 
series it is 20 per cent, of attach- 
ing bonusosi. a rate unchanged 
since 1974 -when it was reduced 
from 25 per cent • On Ihe old 
series the rate Is £0-30 per cent, of 
the sum assured for each po icy 
year subject to a maximum of 25 
years, • • . 

Extracts front the statement. of 
Mr. Howard Hicks 

(Chairman and Chief Executive) . 

Grouptrading profits before tax were £426,059 (£1 ,020,302).. • 
The incr’easedfinal dividend of 6.8061 p (64 874 p) per share 
is recommended since, we do not believe; tpaf shareholders 
should- be penalised because of a temporary setback in ■ ■ 
tradingproffts. / 

The capital investment market which declined to an all- 
time low Jn 1,97 6;. appears to. be. recovering -.although this . 
revival came too late to affect the 1 977. results. Confidence 
in the -British ' ■ecpribmy 7 has improved oVSr the last- six 
months, clearly illustrated by stronger sterling and iTMch 
reduced interest, jates.-- Providing, this situation holds, the 
future can be viewed with -optimism. 

Activities, abroad. 'are, continuing with _ further contracts 
secured in Holland/ Belgium and the Middle East and we 
believe that these, will become an ever-increasing part of 

The current year is. progressing well with enquiries and 
confirmations' at a level which, I hop.e^-will result in a 
substantial recpverytd our,past levels ^f. profitability-- 

' v The IDC Group Limited.; 

Stratford-upon-Avon, CV37 9 W JTal0789 ttB^-Tolex 31 1201 
: London Office TarOl-8396241 

Also at firoHaU; Qifo;CineK.Sn Paiilo, Bs firs In snd Doha. 

the international designers and constructors 


The Building and Civil Engineering page is published in the 
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For details of the advertising space available on.the page 
each week, and costs, you are invited to telephone 
01-24S 8000, Ext. 360 or write to: 

Financial Times 
10 Cannon Street 
London EC4P4BY 



Interim Statement 

Half year to 

Half year to 


Mt. Newman rejects cut c 
in Japan ore sales 

issued Share Capital 

Net Revenue from 

Other Income 
Group Profit before 

Available for Dividend 
Dividend — interim 
Carried to Reserves 

£5,967,348 £5,424,862 

1,384,247 1,247,519 
108,851 227,496 










THE REPERCUSSIONS of the total intake of low-ash coal became involved last year, -\znaz 
world economic recession are because of the steel industry said yesterday that the figure 
being increasingly Tell by the recession. The result was an correlates with estimates reached 
Japanese steel industry and its agreement to reduce the Japanese in the mid-l930s and with addi- 
major suppliers of iron ore in shipments by 4 per cent to 1.63m. tiotial drilling done by Hemerdon 
Western Australia. -Among the tonnes this year. Total South Mining in 1976. 
latter, the big Mount Newman African coal exports are expected i n 1935^7 work done by British 
operation of Am ax, CSR, Broken to exceed 10m. tonnes this year. Metals Corporation 6 revealed 
Hill Proprietary, Selection Trust reserves amounting to 5.6m. short 

The Directors Have declared an interim dividend 
of 0.9p per share (1977 - 0.82p per share 
equivalent) on an Issued Share Capital of 
£5,967,348 (1 977 - £5,424,862) and are confident 
that the profits for the year ending 15th August, 
1 978, will exceed those of the previous year. 

and Mltsui-C. Itob, has refused 
to accept the June quarter reduc- 
tion in Japanese iron ore require- 

It is reported from Canberra 
that the Japanese June quarter 
iron ore declaration was at an 


Metals Corporation revealed 
reserves amounting to 5.6m. short 
tans, assaying 3.6 lbs of wolfram 
and 1.02 lbs of tin per short ton. 
But no drilling deeper than 60 
feet has been done until the 
current programme. 3 

The Ainax statement yesterday 
outlined the agreement reached 

Nat West 

Mi Registrars Department 

National Westminster Bank Limited has 

been appointed Registrar of 


All documents for registration and 

correspondence should in future be sent to: 

National Westminster Bank Limited 
Registrar’s Department 
PO Box No 82 
National Westminster Court 
37 Broad Street 
Bristol BS99 7NH. 

Telephone Bristol (STD Code 0272) 

Register enquiries 290711 
Other matters 297144 

annual rate or only 16m. tonnes. , Drilling at the Hemerdon Ball between the Hemerdon Ball joint 
This compares with the 24.4m. lun S*'teu-tm-china clay deposit venturers and English China days 
tonnes annual base rate of Mount n ®? r Plymouth indicates the for work on ECC land adjacent to 
Newman's Japanese contracts a existence of 20m. tonnes of Hemerdon Ball and specified 
figure which may be either ? ns ? te " mineraI ' U3tion 10 a Amax’s desire to continue expiora- 
incrcased or decreased by 10 per , ept “ 1 , 00 metres, according to tion. poih these developments 
cent, at the steel mills' discre- «max Exploration which is work- were reported in the Financial 
t j on m3 on an exploration programme Times of March 31. 

The latest deeiaratinn is thus « pa H of a io ' nt ven J ure with Amax also sounded a note of 
v-ner rim* htl™ the m H l5? Crdon Mining and Smelting, caution. “ Determination or the 

or zfm C tonnes e fi<Ded h in ihl? !Sn” ThL<l Ls the firw indication of commercial viability or the pros- 
° , 1 d ," th 5[’ Jlr' ™ aerveji 31 Hemerdon Ball since pcct will require several more 

ntr ^Mhiini A 1116 current phase of drilling years of drilling and metallurgical 

reported. Mount Newman started at the ©nd of 1976. Anrax tests," the statement said, 
expected some reduction below 30 “■ 

Ihe minimum level in view of the 

BJsSr-H Zinc depression hurts 

excessive. ~W7~ All" • , 

A similar reduction is under- KPIT A {1(11^011 tirfllPPr 
stood to have been received, and AVW1 rVUUlDUIl UI UICLI 
refused by the Rio Tinto-Zinc 4 

group's Hamersley operation, KERH ADDISON, the Toronto this sort of background the Kerr 
whose basic Japanese contracts group, is postponing it* Crum Addison decision on Grum is 

are about the same as those of joint venture -with Canadian wholly predictable. Kerr is, in 

Mount Newman. Both ore groups Natural Resources for the develop- any event, exp'ecting its 75 per 
are expected to continue negotia- ment of a major zi/ic-lead-silver cent -owned Mogul of Ireland to 
lions in Tokyo later this month, deposit in the Yukon. Mr. William lose money this year at its Co. 

Last year Mount Newman James, the president, stated in the Tipperary zinc-lead mine, despite 

shipped a total of tonnes annual report. a reduction is production. 

of ore to its various customers. 

Rwpntlv Mr Pii». - in „„r = T The decision reflects the low Mogul's cut, however, is small 

. level ° r metal prices and follows when compared with others. It is 
° Mr. James's conclusion that ** it is reducing concentrate production 

'.?_ c , s an !S? l K d not economically feasible to bring to S3 per cent of capacity. In 

lHnitnJ 9 ^ HOud b 5 this property into production at Texas, by contrast, Asarco has 

SLT^ red this time." decided to curtail output at the 

city of 40m. tonnes. P3 Although zinc prices have risen ^ r ^ Us n £. hr ^n t el ^ L J? ] iS f i aciJity 

Last year both Mount Newman since the beginning of March to to J? f er ^nt. of capacity, 
and Hamersley secured sizeable around £300 a tonne on the At Sturgeon Lake in Ontario, 
price increases for their supplies London Metal Exchange for cash Mattabl Mines, which is 60 per 
of iron ore to Japan and the metal, current levels are the same cent-owmed by Mattngami Lake 
latter has been seeking an in- as in the middle of 1975. Mines, is also reducing zinc con- 

crease in its recent contract Within the industry there is centrate production. This is part 

negotiations. little hope of improvement Both of what IVIatta garni calls “a 

Meanwhile, Richard Rolfe zinc and copper were singled out concerted effort to reduce expen- 
reports from Johannesburg that by Mr. David Thomas, the presi- ditunes ” in the face of “disastrous 
the South African Transvaal Coal dent of Shcrritt Gordon, another market .conditions for zinc, low 
Owners Association has nego- Canadian group, as unlikely to prices for copper and current cash 
Hated a modest price rise of 4 rise significantly. His conclusion flow difficulties." 
per cent, for its coal supplies to in the annual report was that “it This effort. involves deferring a 

the Japanese steel mills which is difficult to find compelling rea- start to production at its Lyon 
signed the original South African- sons for optimism about business Lake base metals mine and 
Japan export contract in the conditions in 1973." holding electrolytic zinc produc- 

early-1970s. The new coal price, ““a reduction in worldwide zinc to 69 ner cent, of capacity at 
which will last for one year, will an d copper production is required, its Valleyfield reduction plant, 
be S37.72 (£20.19) per long ton according to Mr Thomas, and Any improvement in zinc demand 
f.o.b. Richards Bay. un tii t hj s occurs on a scale suffi- can be met from existing inven- 

The TCOA delegation which C ient to bring supply and demand tories, Matragami stated, 
negotiated the price rise was sub- into balance, Sherritt's mining ® Kerr Addison has given notice 
jected to heavy pressure from division will be a drain on the of the demise of its 40-year-old 
the Japanese to force down the company's earnings with' costs Virglniatown gold mine in. 

; exceeding current prices. Ontario. At current price levels 

Sherritt's situation is by no there is enough ore tor about 
means exceptional and against two years of profitable operations. 

uj iu me iiouiig reyuire- 

merits of the Paris Bourse and 
was not Intended to alter the 
London stock market's view- of the 
company’s, trading. Nevertheless, 
it caused several brokers to ring 
up the company and ask what was 
going on. 

Town Centre 
ahead so far 

With group revenue for the six 
months to December 31, 1977 
ahead from £703,351 to £812,743 
pre-tax profit of Town Centre 
Securities more than doubled 
from £150.500 to £304,492. 

After tax of £155,000 (£73,00 0). 
net profits of the property invest- 
ment companv . was. £146,492 
(172.500). For all of 1976-77, profit 
was a record £470,000- .and a 
O.S1695p- net per 25p share 
dividend was paid. 

Hogg Robinson 
forms two 

Two new companies hare been 
formed by Hogg Robinson Group, 
insurance broker, Lloyds under- 
writing agent, and shipping, for- 
warding and travel agent 
They are: Hogg Robinson 
(Guernsey), which will be in- 
volved in ttae management of 
captive insurance companies; and . 
Oasis Insurance Company, formed 
in conjunction with Saudi Arabian 
interests and registered In DubaL 
It will initially operate from 
Jeddah, Saudi Arabia. 

Eagle Star 
forms company 

Eagle Star Insurance is propos- 
ing to domesticate its U.S. branch 
trading activities by forming Eagle 
Star Insurance of America. The 
new .company is planned - to 
become roerative from' July, 1978. 

The U.S. non -marine and marine 
business at present written for 
Eagle Star through Whitehall 
Agency and Talbot Bird, respect- 
ively, will form the basis of the 
new concern’s portfolio, with 
Talbot Bird continuing to act as 
marine general agents. 

Sir Denis Mountain will be its 
chairman and Mr. F. J. Spitalny, 
at present U.S. manager, its presi- 

£46.210 (£295.022 - charge) : and 

minority debits of £118,617 
(£34,654 credit). 

. Extraordinary profits totalling 
£2.69 m. (£0.62m. loss) are covered 
by a transfer to (from) the capital 
reserves, and attributable profit 
emerges at £526.914 against' 
£41^965 last time. Basic earnings 
per share are given . at 1.5p 

. A final dividend of 0^p (l-317p) 
net per 20p share takes the total 
to lp (.2-317p) as forecast at half 

. The directors estimate that a 
valuation of the group's proper- 
ties held as fixed assets on an 
open market basis would show a 
surplus in excess of £l3m. over 
the value of £49.487,S32. 

(nil). a surplus on eieha,- 
af £860.627 (deficiency f 
a deficit on the liquid**, 
subsidiary of flSJis- . 
and costs of property ^- 
Of £17,534 (nil). . . 

UP TO £0.2M. 

. Taxable profit of Vrafia 
textfle merchant, was iff 
£156.765 to £214^20 in Hu' 
31, 1977 year: 

After tax of £106.877 ‘ 
net profit was £107,943 . 
The dividend is ah«. 
2.7225J) net per 50n ; 
2.9945p.- The company 


The loUowtns companies have notified 
dates or Board mw tines to the Stock 
Exchange. Such meetings arc usually 
held tar ilte purpose of considering divi- 
dends. Official Indications are not avail- 
able whether dividends concerned arc 
Interims or duals and the snb4j<r1sfana 
shown below are based mainly .on last 
rear's timetable. 


interims; AS Electronic Products. Con. 
so:idated Gold fields. North Atlantic 
Securities. Womb well Foundry.. 

Finals:. B1CC. Black, and Edjdosnm. 
goosey and Hawkes, J. E. England 
rWellumtonV Hiltons Footwear. Robert 
McBride ( Middleton ■. Phoenix Assurance, 
W. R. Smith. Son Alliance and London 
Insurance. Tilbury Contracting, Unicorn 



A tiaio Scottish Invstmni Trust ... Apr. ZT 

Coronation Syndicate Apr. 14 

Equity Income Trust Apr. 17 

Lowland Investment Apr. 21 

Twceronteln United Collieries ... Apr. 14 


BSC International 

Branford . . 

Brwn Seven Krot 

Buhner and Lamb _ ... 

Carroo . 

Chamberlain Groan *" 

Delta Metal . ~~ 

Dewblrst tl. J.i 7 

Eagle Star Insurance . . . 

Engllab National investment - ”..' 

Ftalan (John) • 

Fogarty *E.i 

Hambro Life Assurance 
Hewdcu Smart-Plant . 
Jersey General Investment Tr 

Lee Refrigeration -\ 

Liberty ... 

Moorboose and Brook ' 


Oil Exploration 

Provident Life of Loudon ._ 

R&vrtex Cheniic* Is 

Rowan and Boden 

Sanderson Kayoer 

Sharna ware ■ 

SftUoh Spinners ..^1, 

smith St. Aobyn ; 

Tarmac - *?- 

Taylor Palllsicr — ... 

video rs ^ 

Vougbal Carpets 

Weslevan tf- 

~ mm . « Field, in moving the qc 

Jfo flPnAlfll of the P-port end Shi ; 

W UV/lftVlUi of Accounts for the : 

Assurance Society ended 31st Decem ^r 

Encouraging growth ^ 

Farther increases In policybolders’ bon»£ - 
Expenses contained 

Societe Sucriere du Haut Ogooue S.A. 


Medium Term Loan for Completion of 
A Sugar Mill Complex at Franceville, Gabon 


More consumer exploration 
sought by OAPEC 

Guaranteed by 

La Republique Gabonaise 

Arranged by 


iarion Engineering 

Limited W0 

Another successful year 

Mr. Aubrey Garton, Chairman, reports on the year ended 31 st December 1 977. 
Sr Turnover £11,173,000 — up 23% 

->r Pre-tax profit £1,050.000— up 28% 

-X- Earnings per share 1 6.1 p— up 31% 

■rc Dividend increased by ma ximum permitted amount- covered 3.09 times 

THE Organisation of Arab 
Petroleum Exporting Countries 
(OAPEC) lias colled on indus- 
trialised countries to help step up 
oil exploration activities in pro- 
ducing countries to avert what it 
calls a rea) energy crisis. 

Q APEC’s monthly bulletin says 
new patterns of co-operation in 
the field of exploration between 
consumers and producers could be 
round that would be beneficial to 
all parties. The current trend in 
world exploration activity is to 
drill for oil outside the Middle 
East especially and the Organisa- 
tion of Petroleum Exporting 
Countries (OPEC) states generally, 
it soys. 

No Fet up in this trend appears 
imminent despite the historic low 
rate of additional reserves dis- 
covered for the number of 
exploration wells drilled. 

For instance, some 4S0.000 
exploration wells were drilled in 
the U.S. during the period between 
the start of the American pet- 
roleum industry and 1975, yet total 
proven oil reserves discovered 
were lest,- than 154bn. barrels, the 
bulletin says. In contrast, the 
2,000 wells drilled in the Middle 
East during the same period had 
proven reserves of approximately 
5C0bn. barrels, it adds. 

The rise in exploration activity 
outside the OPEC countries shows 
unequivocally the great extent to 
which the major oil consumers are 
willing to go -to secure oil 
resources in areas under their 
direct control. 

Nonetheless, the rate of con- 
sumption of OPEC oil in the con- 
suming countries has been affected 
only marginally despite the 1973 1 
oil price rise, the bulletin says. 

Should this trend persist, the 
decline in the reserve -to-prod uc- 
tion ratio, OPEC and worldwide, 
will accelerate the end of the oil 
and precipitate a real energy crisis 
before marginal substitutes are in 
full production. 

This need not occur if explora- 
tion activity in the OPEC countries 
Is stepped up. The cumulative 
and new technologies of the con- 
suming countries can be utilised 
to this end through some new 
patterns of co-operation with the 
national oil enterprises of the 
producing countries. 

.Such patterns should be bene- 
ficial to all the parties involved 
and acceptable io the oil-producing 
states, the bulletin adds. 

* - * 

For the third time in less, than 
two months, Indonesia's state oil 
company, Pertamina. has offered 
an area for foreign hydrocarbon 
exploration and production. 

A Pertanima spokesman has 
said that the new area is an 11,000 
square km. site in the eastern 
part of the Java Sea and is known 
as the Siri Block. 

The' block is open for opera- 
tions under existing production 
sharing terms the spokesman 
said. In February and in eariy 
March, Pertamina offered two 
onshore areas to foreign oil firms 
and thus for over 20 companies 
have responded to each of the 
earlier offerings. 

★ * * 

Norccn Energy Resources 
announces that its Norcen Inter- 
nationa] unit has acquired a 10 
per cent, interest in a service 
contract for petroleum explora- 
tion of a 3,050 square km. area 
offshore the Amazon delta. 

Elf Aquitaine Bresil is the 
operator of the venture and holds 
u 45 per cent, interest in the 
contract Other participants are 
AGIP SPA or Italy with a 30 per 
cent interest aod Odeeo Explora- 
tion. a unit of Ocean Drilling and 
Exploration New Orleans, with a 
15 per cent, interest. 

Norcen's participation in the 
contract was approved by Pefro- 
bras, ihe Brazilian Government- 
owned oil company which issued 
tite contract. The first well is 
expected to commence drilling 
within the next few weeks. 


Nervous trading 

Bonk of England Minimum 
Lending Rate of 61 per ccnL 
(since January 6, 1978) 
Trading was rather nervous in 
Ihe London money market yester- 
day. with discount bouses taking a 
guarded position ahead of this 
week's Treasury bill tender, fol- 
lowing speculation that a signi- 
ficant rise in Bank of England 
Minimum Lending Rate is possible. 

Recent market sentiment has 
tended to dismiss an early rise in 
MLR as unlikely, but increased 
nervousness about the economy 
and various technical factors in 
the market, have pushed discount 

houses buying rates for three- 
month Treasury bills to G-6,'., per 
cent. This points towards a 
possible rise in MLR, although on 
balance any rise must still be 
regarded as unlikely ahead of the 
Budget next Tuesday. 

Day-to-day credit was in good 
supply, and the authorities 
absorbed surplus funds by selling 
a small amount of Treasury bills 
to the discount houses. This was 
probably not enough to take out 
the full surplus however, possibly 
reflecting the guarded attitude of 
the houses and the reluctance io 
accept too many bills under 
present circumstances. 

Looking ahead to the current year, the Chairman says, 

"In the early pari of the current financial year trading has not shown the degree of 
improvement achieved in ihe corresponding period of Iasi year, although our sales figures 
show us to be marginally ahead." 

"However, by continuing our efforts to increase efficiency and with improved 
penetration in our markets at home and overseas we would hope to achieve another year of 
satisfactory results." 

t oil i c 
itl de|imU« 



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Banks brought forward surplus 
balances, and substantial Govern- 
ment disbursements exceeded 
revenue payments to the 
Exchequer. On the other hand 
ihere was a fairly large take-up 
of Treasury bills to finance, and a 
slight rise in the note circulation. 

Discount houses paid up to 5} 
per cenL for secured call loans, 
but closing rates were in the 
region of 11-2} per cent. 

Overnight money in the inter- 
bank market commanded 5J-G per 
cent at the start, but rates fell to 
1-2 per cent, at the close. 

Rates in the table below are 
nominal in some cases. 

■ Ulwiini • I Eligible I 

market : Tieaxury ] Bank (Fine Trade 

■ itcpmU. ‘ Bill* 4> | BUI* <T { Bills 4 

Local authorities and finance bouses seven cars' notice otiK-rg seven dars’ fixed. Long-icrm local authority mortgage rate 
nominally Ibrw- yean Mi-Mi rent.: lour yuan U per cool: five years 111 per crni, <*Bonk bill rate* in table are 
buying rales tar prime paper. Buying rates lor four-month bank bills 61 per cent,; roar-month trade bills Tl per cent. 

Approximate sellins rates for oix--monih Treasury bills Sl-aUis per cent.: itro-ntonUt aWja Per cwu.: and ihrur-momb 
351j2 per cent. Approximate seUins rale for anc-monui bunk bills film per cent.; 1 wo -month 61-B5|fi per cunt.: and ibrw- 
nioalh fiSit, prr ceni One-monih trade hills e;-94 per cent.: uvu-mamh fit per cenl.: and also iftree-montb DM per cent. 

Finance House Base Rates 1 published by ihe Fins nix- House* AaMcMion/ ? per cent, tram ApnJ L 1KR Clearing Bank 
Deposit Raiss ifur small sums ai sewn Asst.' uoiire' a per ceaL Clearing Bank Bose RJUC (or lending W per cent. Treasury 
Bills: Average lender rales uf discousu 3.BU62 pur cuni 

The Society has shown some real 
progress during the year under 
review, and the rate of progress 
shown over recent years has 

Long Term Business 
Premium income in .the Indus- 
\ trial Life Department increased 
by ?.38% to £9.457,000. ■ In 
spite of the increased race of 
growrh in this Department, the 
proportion of the premium 
income used to meet expenses 
has been slightly reduced for 
the second year in succession — 
no mean achievement during a 
period of high rate of inflation. 

. In the "Ordinary Life Department 
new business production rose 
sharply in the last quarter of 
the year and, whilst premium 
income rose by a modest 6-31% 
to £5,220,000, there was an 
increase of 10?£ in ' standing 
business by the end of the year. 
This upsurge in new business 
production has continued into 
1978 and gives promise of gopd 
results for the current, year. 
Short Term Business 
Despite an underwriting loss of 
£164,000 in the Motor Depart- 
ment. the General Departments, 
as a whole, showed, a profit of 
£639,000, after crediting invest- 
ment income of nearly £548,000. 
This result was helped by an 
. improvement in the under- 
writing fortunes of the Property 
Department, where the 1976 
underwriting loss of £182,000 
was transformed into a profit 
of £i 45,000. .This owed much 
to a lower incidence of storm 
damage and subsidence claims in 
1977, and to the increase in 
premium income arising from 
the automatic 25 Increase 
applied from June 1977 to sums 
• insured under Household 
policies. This automatic increase 
.Seems to have been well re- 
ceived by staff and policy- 
holders, who have secured rhe 
. greater protection they un- 
doubtedly neaded. 


A substantial, proportion of the 
new money available for long- 
term investment was again 
directed into long-dated Govern- 
'ment stocks to secure returns in 
excess of I2‘^. Our responsi- 
bilities to provide capital for 
industry, to which I made refer- 
ence in my report last year, 
have not. however, been over- 
looked. We invested over £!m. 
by subscribing for new shares 
in fifty-two of our existing hold- 
ings where the Companies raised 
additional capital by rights 
issues. Additionally, we -added 
several medium-sized industrial 
units to our property portfolio 
.on what have already proved to 
be attractive yields. 

One of the principal objects of . 
an investment policy is to secure 
safe, guaranteed income for she 
future. The growth achieved in 
our investment income over the. 

I past few years. lit . spice of 
1 restrictions on dividend increases 
for ordinary shares, augurs well 
for the prosperity of the Society 
and its policyholders- 
The book value of the Society's 
assets for Long Term business 
increased by £l2m. to nearly 
£!2£m. and that for Short Term 
business by £400,000 to nearly 
£4m. . - ‘ 

Reversionary Bonuses 
I am pleased .to report that we 
have been able to increase our j 
'reversionary bonuses in the 
-Ordinary Department to £4300 ■ 
per 0.000 of basic sum assured 
(1976 £41,00 per £1.000) for ail j 
With profit policies except Equity 
policies, where the rate has been 1 : 
increased w £56.00 periLOOCof 
. basic sum assured (1976 £53.00 
per £1.000)- For with .profit;-, 
annuities the rate remains at" 

) £50.00 per £1;000 c — • 
annuity. " - 

| Terminal Bonuses — 

The rate of terminal T 
the Ordinary Departmei 
was increased in 1976, 
unaltered at 2% of di 
s ion ary bonus attach^- *- 
policy for each yii^ - 
thereof the poliq' utoj - 
prior to the 1st Jahiji 
Policyholders will ,a) : 
that although the ran- 
minai bonus remains t‘- 
as in 1976. ic operate* 
higher rate of feei 
bonus for 1977 and com ~ 
increases the amount of - ’ 

In the Industrial .Dep^-'" 
the rate of terminal br •_•' 
been increased for' olf J." 7 
with durations in exce'- 
years, rising from Xl 
policies of 10 years dura- 
same as. in 1976) to i*- ■ — 

■ policies of 30 . years 
duration (1976 40%). 

Life Assurance 
Premium Relief . . “ 

The method by whWft 
assurance policy holdiM ^ 

.hitherto received the re2 9 ? it 

'income tax to ^ J ^ 

entitled on paying his i* __ •* 

is to be altered with efll| 

April 1979. From 
policyholder will r*cd|f4£ 
benefit in the form ofjjft 
premiums or increased '“V 
This alteration will inv 
Society, in common \ ^ 
other life assurance ce'-f 
in a great deal of 
resolring the problems 
New Development* J 

Fk.._S . _ A. ..... UI* l 'i.lfw. 

3 rr i 


New Development* 

During the jwr. i M i 

our sales staff updated 

proved books of tahiek, * 1 — i 

mium rates and benc-^k-^.- 

introduced new 5eif l 
Pensions, policy- 
We- have • continued of •• 
of streamlining ageneier> . •- 

District Office was closv. " 
careful investigation hac ^ 
us that ic should, be ’ . • 

give satisfactory servio.’^ .. 
policyholders from 
District Offices. ' 

We shall continue wi... 
and other measures, *• 
twofold object of imp" 
service to our policyhoL 
of containing the ever n 
costs of running our 
under inflationary t* . 

Our efforts in the lait 
rron have not been > 
the action of the Gover - % 
Imposing on employers -. . 
ployment tax on every 
on the pay ron. « ” 
course, called an WU 
tax: it is. d escribed «* a . 

Insurance Surcharge ano .' .- 

under the terms of the 

Insurance Surcharge Af 

Prospect* for the Fun* ; 
During the year J977-- C- .. 
ceeded in increawng f ' 
premium income 
higher rate than the ^ 
Increase In our expww - .. 
results obrained so rar ^- , * 

give me confidence that 
to the rate of • n ™ f ¥v’ 
kept whhin reasonable ! if., t . 
shall be .able co hoi^ >. 
modest successes adiiei. ._ 
the past two years. . • l 

Tribute to Staff . x 

Results' such as those m . - 

reviewed wouW b' ' 

without hard and 
on Ihe part of our so 
.at principal ■ Office •_ 

. Tcfil staff-/ my‘»r 

our thanks for ^ 

'tmued i»?pon V;--.,, t 

progress o> lw* r v 

'•«iY j 

m { 


(j|| El^dal Times Wednesday April 5 1978 

. ■ , ,-,. . ' >'* 'I 

i'- ,v. ; ’=■ ! V: i 

: v -• ,r, * -ij^i 

- 'Vfcf 

••': - - - “i*. 

_ . w 

’* •■■!'.■ • 'Cv. • 

■ - ■ • .- . <■_ ■ 

'■) r I t vjS 

* - Ti 


i policyholders’ i 

• re a: '■< • 
• : :*t :: : 


33 : ,- — ' nfl 1 



Cadbury faces 
U.S. probe 

Cautious optimism at Lex 
as business share grows 


The ; industrial , tatmsts- - of 
Products,best known for 
ara matchbox range oi toys, are 
neug expanded with the purchitf e 
Doehler— the 
British subsidiary .of Hi. Indus- 
ates In the ILS.— for SAn. 

The purchase is conditional 
Upon the deal not being referred 
to the. Monopolies Commission. 

Lesney, which is determined to 
increase Its activities Outside the 
toy field, is seeking -to push up the 
Miee contribution from its indus- 
trial division Crmu its recent 
levete of around 4 per- cant, to 20 
percent by 1081: It says that the 
MCD acquisition wIB Jlft this con- 
tribution to 15 per cent in the 
current year. 

The acqtiLsJtikm wfil also extend 
the Industrial division's existing 
JdiK diecasting business— JarKcly 
for consumer ©Joetrtcal goods-— 
into MOD'S aluminium diecasting 
activities which has the motor 
industry as a major customer. 

The group is planning to spend 
B3m. on modernising MCD’s fac- 
tory at Worcester, over the next 
three or four years, and capital 
spending on tile plant may be 
around £0-&m. in' the current year. 

MCD, with net tangible ^assets 
of OSm. in the last balance 
sheer, earned pre-tax profits of 
£427,554 on sales of Hi. 85m. last 
year— a more recent valuation 
wade on behalf of Leshey put 
MCD net assets at nearer £3fim. 

The deal is to - be financed 
entirely from Increased bade 
borrowings. The group’s last 
accounts for the year ended 
January 30. 1977 showed that 
Lesney bad a. net cash surplus of 
£1.4m. Lesley's. 2uH year results 
for 1977/78 are expected very 
shortly. At the half-year pre-tax 
profits were £L47m. compared 
with the previous first-half's 
£3 .08m. 


The trade journals and direc- 
tories publishing gro up . Berm 
Brothers, Is negotiating the sale: 
of its wholly owned subsidiary 
the Press, at Cobmbeiands to. Ian 
Allen . Group publishers . and 

Final details have still to be 
agreed but the likely price wCD 
be between. 5 and 15 per cent .of 
Benxf 'Bros.' ftet -afcsett BSLSSm.— 
which, would put the price be- 
tween £116,000 and £349.000. The 
proposals would Involve some, de- 
partments being dosed, at Press 
which incurred a small operating 
loss in the year tO'June 30, 1977. 
Its sales are less than 3 per cent.: 
of Benn's total turnover. 


Shareholders -of Brittain* have 
approved "tiie 5 issue of 1 115m. B. 'per 1 
cent. Convertible. .Cumulative 
Redeemable Preference Snares, 
and the contract for the acquisi- 
tion of the WolvercotejPaoer Mill 
from Oxford University Presshas 
been completed, with 2Jtm. Ordi- 
nary dares being issued to yUP. 

Equity Capital for Industry has 
subscribed for the .remaining 
l.KSSTroo new Preference shares 
and has made a £500.000 12 per 
cent Convertible Secured Loan 
1995 to the company on the term* 
described in the circular letter of 
March 30. As a result Ed will 

be entitled to 23.8 per cent of 
the votes at a general meeting. 



Fcrrantl has acquired Rubery 
Owen KajriLaJnexvx subsidiary of 
the, Rubery Owen Group. The 
Karrttainers operation, with a £4m. 
turnover irrthe last twelve months, 
manufactures materials handling 
equipment Its products will be 
incorporated into the container 
handling division of Ferranti 

Ferranti believes the acquisi- 
tion will , create a much stronger 
UK. industry mow able to pene- 
trate world markets against 
foreign competition from Europe, 
Japan and the UK . . - 
Combined sales ' of both com- 
panies total over 900 machines 
which constitute 50 per cent of 
the -world installed units. To 
maintain the UJC share of the 
world market, Ferranti considers 
it essential to consolidate the UK. 
industry into a single viable unit 
to provide the strongest possible 
technical, marketing, after-sales 
and parts support capability. 


W. Canning has bought all the 
Ordinary share* of HIrd Brown, a 
Bolton based electronics company, 
and has reached agreement with 
the National Enterprise Board to 
'provide long-term . finance for 
HIrd Brown's expansion- Con- 
sideration otsBOOfiW plus a 
further payment based on profit 

The NEB has subscribed for 
£250,000 9 per cent. Preference 
shares 1988 In HIrd Brown and is 
providing ' that company with a 
£150.000 loan for five years. NEB 
haK an option to convert part of 
Its investment into not more than 
29J per cent, . of HIrd Brown's 
Ordinary capital. • ‘ ' 

.Canning considers that the 
acquisition will assist the group 
with electronic innovation within 
Its traditional fields. HIrd Brown 
-also operates in areas which com- 
plement,- or are compatible with, 
the Canning , groan's existing 
.I nvestm ents in poll ution and 
'environmental control 

HIrd Brown is a private com- 
naror formed in 1959 and Is the 
largest UK. manufacturers of 
nhoto-dectrie controls. Its s?l«»s 
for the 12 rrmotii* to Slav si. tI»V7. 
-were giftWflOO; pre-tax profits 
were £91 WO - shareholders’ 
funds totalled' £219.000.' 

- Canning aicn-aruxamees the <s)e 
of Its bonding of, 1315.000 
Ordinary shares J37Jt per cent.) 
of Hahn*. .This has been -naa^ed 
through the (rocket by. Smith 
Keen Outier with a . njariber of 
• Jnstitotianal clients. .. y . 


For £400.000 cash, Bodyeote 
International, the , Manchester- 
based protective do thing and 
textile processing group, has 
bought Pwar Contract Motoring, a 
vehicle leasing, Company. The 
deal, as well -as extending the 
interests of Bodycote’s fi nan cial 
services division, will also provide 
the ; group with additional tax 
: benefits, through the first year 
- write-down, allowance on motor 
vehicles ■ 

The United States Federal March 23 as all the conditions NOT ONLY is Lex Service Group £12^m- "WJ 5L^ CTnfi,,ent of *>°d fuU »*« 

Trade Commisaion is looking Into attach^ to it were fulfilled. beneSting frora tbc economy but ™ 3 «5V?2924SP) group is expected to 

the proposed deal under which The .Directors intend to eompul- it is also tending to do better deiri Ms 3S?oxf«5£SS tomStd announcf shortly details of new 
an American subsidiary of the son'y acquire iho ou. standing in its share of business and the P* issue. branches under its previously 

big Cadbury Schweppes food and shares in Ellis in due course. directors arc cautiously opu- cost basis along announced £lm. capital expansion 

drinks group plans to take over >Ir - *“ the Hyde guidelines, profit was programme. 

the UK confectionery concern tPBBITT TO RllY chairman, said yesterday. £9nu after additional depreciation 

Peter Paul through an agreed rnMOAVitrc Any increase in consumer of and, extra cost of sales . - « 

Bodvcote which has been * 58 - 6m - (£31.4m.> merger. ifud-TTf- JLVu rA r.- h spending is likely to have a 0 f £33m. and including a gearing A 

Mr. James Forbes, finance i h ‘ 2i ; ^ilionally major Impact on the passenger adjustment of asm. /YpPICY diu 

director of Cadhurv SchweoDes. agreed to acquire the capital of ~. r u-bicb l<z already at veor end workim? eanltal Mr Jl v 

attemntino to diverslfv awavfrom n,r * ’'"“vs corocs, undiice i major impact on uie pass*uB« adjustment ox ujqi. niiUlV ▼ uJL U 

its irolnrtream business^TmkS director of Cadbury Schweppes, agreedto acquire tiie caplt^ofjmj. ma rket which is already At year end working capital * 

ilosebf SdSrthe textUeJndustro m London last night; "We Tape Fnjecta and Sclf^eal l^pe j ahead of last year, was up £6fi4m. (£899.000). Bank 

already has an insurance hroSnc ,ook on as a rautine inQtoOr from Tiger Securities. An im Vf] Volvo registrations, for example, overdrafts were lower at £523,000 Qfl Kll f?©t 
subSin^md hnS^rwentiy ™ be very pleased to the first two months of the f£l57m.), short-term debt was UU 

developed moperty development provide, in conjunction with ® f current year are at their highest £302,000 (£109,000) and Jong- and j A* AH-m 
interensT ^ Peter Paul, anything that may be delayed POnjent. not exceeding , ever j eve j f or that period, Mr. medium-term debt was down at QT “K 1 lE / ITfi . 

... * . required.” £100,000, seared to the pre-tax I rhin _ ^ ^ annu^ state- £443m. f£4S^5m.). *U efaXeT 1 / ilJLo 

£129000 <S Sn I1 lfi77 Pre "Nct ^Se2 at peler pauJ yesterday stated profits earrod by the two com-j menL Capital commiements amounted ^ jjnE with the forecast in 

iLZS.UUU m loll. IVCl VnWnml Tp-irln rnminic. TjaTlieS ID 107», _ . ♦« MMm of whlrh T -.-1 ... .«£„ *.{ A hhIi 

DcreSber 31 (btfore proSfof *?■( IheFederal Trade Commis- The company's transportation hS February ^ S^ fits 0f 

deferred tax) totalled £204 000 s ‘ on started investigating *““■ activities would also benefit from £774,000 (£334,000) had been Group for 1977 rose slightly 

deferred tax) totalled merger. The Com- t* the issue of ^hitt | Onhnary . YnCTeare fo X volume of authorised fart not contract ed. ^ ^ *.37^ t0 £1A7m ^ on turo- 

SMSrCd asked * for certain SallSE? JSd » X£EZ ta £»**»&** of sales and profit ^sSSmSi «ain« 

information about operations industrial outout and in Indus- by _ activity shows, with. £0005 Hasnite a second half ( 

cent, ownea suiisiuiaiy ™ a lurxner miormaaon aoout me oanital reauired. the Board comments. ' itaarT Tr«a aiai woum oe ai recora icveu. 

investment trust, has sold its 50 investigation or what action, if ^Tebbltt has’ derided to oBer Th® London hotel market “J SS U tr^.V 8 SS m iSSS!l The directors now say that the 

nftr n>nt hnlrllnv in S.K.E. Dcvp- ,nv tha Pnmmivcinn m ,aba ?*• . . B ID O C , knnmnt okhnnirh and Sob (*!«/, Lltinspo rmi 1 n, .... uu >I 1 

estate developer, and Keldlc Pro- Tft ,,. T Tmnvr Tape began trading in August from the forecast increase in roog r£46i: other £4978 (£6376) profit is now coming from Rolis- 

perties, a property company with ,.7,!" 1977 and for fire month period i traffic flying in and out of £jg3 mm); and surplus Royce, Ford, commercial vehicles, 

investments in the West Midlands WITH LONGBOURNE to December 31. 1977. it showed London’s airports. ^02, proper ty £146 (£124). Less agricultural engineering, budget 

and Herefordshire. Jokai Tea Holdings and Long- a loss of £6iS2. after paying Although there is now some t i nteres t of £6,004 (£6.4X7) and rent-a-car, fuel oil distribution, 

The total cost to Control is bourne Holdings, two members of management charges of £21,000 to slackening in the growth of the __ u _ over heads £1,518 (£687). credit finance, and contract hire. 

£122217. The net assets acquired the controversial Camellia Tiger. For 1977 Seal made a net 1 L.S. economy each of the com- The balance is from the sale and 

are considered by its directors to Investments grouping, have loss before lax nf £34,100. I pany's hotels there expect to show service of British Leyland cars, 

be In excess of that figure. started merger talks. Net tangible a?«ets of Tape as I improved profits, particularly fl R TFF1N Ff FI B they add. 

The company has also provi- If the proposed scheme of at the end of 1977 amounted to “lose in Chicago and Houston , . After full provision for deferred 

si anally agreed with Labofund arrangement goes through, it will £127,101 and for Seal to £10,690. which are sull improving from a ]|p || .T.K' I'I'N tax, earnings per 25p share are 

M _FbJlowng completion Mr ^ to Mr.Ricbani I. Greenfield, chair- shown as }?J9pJll.Gp). As 

sale of the Exchange, Cardiff, under 30 per cent, and since then be made a director of Tebbitt. 
effected before January 18, 1988, it has gone to 30.4 per cent He will work on a pan-time basis 

?a r kS^^ < ^at 0 mro."° fote? reag^wT^ 8 reS* l5 S^Io^foT’the “ctiritieV of ti!e J e fro “ iXftfc Sd1h2Tthe1?o^loSK^ SSeiTi toS? 

ssfs “ Eroup - 377 sr- 6 Sb.« i nl ^ md i97s - 

notices of a general meeting to Jorehant Holdings, another r — ADr „ 

seek their approval will be company in the group, was 1 KULLUrb & ~W"W "■ T7" A J , _B — 

rorwaried - srpasssa sssjsekk... Henderson-Kenton extends 

m December. 1977. acquired the capital of 

DAVY EXPANDS - Jokal and Longbouroe recently w ; J. simms Sons and Cooke 

FURTHER IN U.S. SSSStS “J53E? " m ** i„ NotHneh™. SPllPlUP 

‘ Davy International, the engin- Harrisons and Crosfield. Each ^ involved in general contracting UliSvUUlIi 
eering and construction group has bought a 5.1 per cent stake in activities principally in the Mld- 

announced that its whoUy-on-ned Sogomana which is 42J per cent- Iands and the North of England. -e^ers Henderson- that they should be doubled, they Full-year turnover expanded 

U.S. subsidiary, Davy Interna- owned by H and C group SimnU! fa a isp currently working ™^rs HeiWterson b control from £15.63m. to n7.66m. f of 

tional lnc n has acquired HaUanger companies. for the National Coal Board on Kenton has decided to extend the are imumieu oy oiv u exports increased to nearly 

Engineers Inc. of California for ao open-cast mining contract. scheme under which shareholders worn oomg so. £325m. 

around £1.1 m. ■ „ t» iVintended that Simms should are entitled to a 10 per cent dis- a customer who wishes to take _ 

HaUanger Engineers is a private CRES T B UYS FROM continue to trade as a separate count on pure as es to the unit- advantage of the discount will The directors they ^are de- 

consul tahey company providing QUALITY INNS entity following its acquisition by holders of trusts which have a sub- have to preset his original unit emect to 

engineering and construction o^s t Hotels, a subsidiary of Trollope and to provide con- stantial stake in the company. certificate to Henderson^enton at ^w* re- 

services to a broad range ?f Bass Charrington, is to take over tinuing' employment prospects for For a triri period of one year, the tune of purchase, or authorise maimain the advance now re 

services to a broad range of B ass Charrington, is to take over tinuing employment prospects for For a ^ o£ one year> the time of purchase, or authorise maimai 

hi dusttial clients. Davy has paid a 200 room facility at Ratingen. its existing work force. unitholders in trusts which have the company to apply to his unit ported. 

around £}m. in cash with the Hermairy from the U.S. group at least 20 000 of Henderson- trust for written verification of After tax of £59.000 (£35.000), 

balance due In about two years. Quality Inns. Quality said that it Kenton's shares will be allowed a his holding, within tiro weeks of minorities and Preference divi- 

had decided to accept Crest’s offer BLACKWOOD 10 per cent, discount on Items not an order being placed in the store, dends, stated eartnnes jumped 

_ _ _ „ _ as a result of the effect of cur- MORTON already reduced in the company’s f f° m 1 - 75 P to I°- 4 P. P?r _25p 

R. H. COLE rency swings on its German earn- Blackwood Morton and Sons stores, which trade under the share. 

R. H. Cole has agreed to sell its Sn ^s. (Holdings) announces that agree- name Kentons in England and A HfronAD QT 1 

holding of 50 per cent of the Mr. Joseph W. Mncarthy said ment has been reached by its Hendersons in Scotland. If V (illLC dt neL 

■SSSLSJ- SSS??|fi WTS £*&a s «a'?« 

a^TOr»-E Efw£~rl — a. x jssss Harrison = 

Proceeds will be used In the deve- Tonus of the deal were not dis- and rertain stocks of materials, “SSblfto Sdu™ O SSS. 

L«ii 0f 00,68 c <* ntlI, ^ cl ®t aheadv has '****• witii more tiian 100 ^re? at the &Jh)I 1S ... 

Advance at 

share. A final dividend of 2.709p 
raises the total to 4.196p (3.757p) 

activities. <-resi aumu» u 

Profit before tax end estraordi- 

Germany— Itf-Sa 

end of 1976. In extending the 

:: . r 

_ ■ , 

. ' • * - -1 

• • ’ ■ .if 

’ . ■ ' . -j* 1 " %" 

. » t «i 



: -:r y 

M ■ - • . ^ 

i:V ’ : V^ 

~ ‘ .. ' ■ ' #!■ .j 

A MeinbenirntoHci^ 

“There is continiinig growth to report” 

BgghBghts front a statement by the Chair ma n, Alig n s Macqaeen, CMGL 

The Year’s Resofis and CapftalCIhanges ^ 

The Bank’s published profits off&5ia am satsfectorBy higher man 1976. 

Costs iathc Middle East remained veiy Kgh-Nevarthele$s our branchy 
were able to absorb these OKts, and, with certain exceptions, to increase profits. 

The Balance Sheet 


deposif base^G uar^nlees, acceptances and docuxnenlaty credits have been 
reduced by 16%. •_ 

The MhWfi Eastern Scene . , 

In Lebanon much has been done to improv&condifioiisln mdmorod 
Beirut but coafidence isstow to nstumlbritis dearthat fundamental.. 

problems have not been solved. . . 

fa the A ffhfart Penins ula and fhe Gnlf, where tho Bank’s nuifl-ousinass 


and the po lineal sitoadem in the EasteinMeditemmean. - _ ' 

The “North/Sbntfa dialog^ nmined as bec^edinOT^^^ 

gSSSSSHf® firs- 

The startling growth ofimpGrtsirrio the Middle East has now. definitely Lebanon • Oman 

stodten^nidato . Svtelaad.- Unit 

devedopmeets now in progress. uiapanaiH uwnaui pre^u ^ 

inflati on which is serious in the ofiproducmgconnlnes and onlyaliule less 

so anrongtheirpoorerielaiions.' 

increased its deposit base substantially. 

Operations atemr exiting wanowsconiinMfflaiUB"^* Telephone 01493 8331 Te! 

Xbe Staff • 

The anil atao^tothemccesie* 

flfthftyear cannot be urMMBS t i iii atod. 

nary itnms 01 ur. ubck, wnicu -rv- tinue the manufacture of carpets 

£90,390 for 1976 and at that date a J!J2SiSSS? °La Sw and it is anticipated that employ- ! 

Dr. Beck's net assets attributable {S^e/ f0 r^ l l|S^ n e^ d ^ ment will be provided for all or . 

to Cole amounted to £291,000. lacwnes for ousmessmen. raost of ^ workforce In 

was attributable to Cole, was Canada. ! 


n « ixmipcirc Gough Brothers announces that S. & W. BERISFORD 

- r.JU. WHAKrAut acceptances have now been s. and W. Berisford, the 

The purchase of James Glover received in respect of more than British based international 

(Shoreham)f and James Glover 00.3 per cent. - of the shares in commodity trader, has acquired 
(Transport), by PD Wharfage EUis and Co. (Richmond) for jr an iiain and Son Management the 
nnii Transport has been completed which the offer was made. The wool cleaning group, for £l2m. 
for an undisclosed sum. offer became unconditional on Of this £435.489 has been satisfied 

— • ~by cash and the remainder pro- 

— ■ vided by the issue of 782,334 

Berisford Ordinary shares. 


1 \ Discussions between Globe and 

H H Y \ Phoenix Gold Mining Company 

m ■ V ■ H/ fsyGn and Phoenix Prince Gold Mining 

I ' »yB I I Wk f \ in connection with an offer for 

] Phoenix Prince are still continu- 
_ V A Vh / roff l 13 * erased a delay 

'V . » Y / ln sending an offer document to 

n Ij VlCIT shareholders. 

t* l'i/1%1 ^ BROCKS ALARMS 

B ilH-r * W Automated Security (Holdings) 

bas completed the acquisition of 
. Brocks Alarms and other asso- 
ciated companies in accordance 
with the circular sent to members 
on January 5, 1978. 

tn rpnor t” grindlay br.4ndts 

■»” Grindlay Brandts, a subsidiary 

a 1 x .. „ n _ e-carr* of Grindbys Bank, has sold its 

AH£QS JVxflCQIICSDj CJM.lx« shareholding in A. L Sturge 

(Holdings) which will result in 
the present working shareholders 

_ owning 100 per cent, of the latter 

. . company. Their representative, 

Q Jy7o. Mr. D. E. Alee kins, has resigned 

,anda from the Board. 


SUSk share stakes 

* , Tolbex Group— P. R. Gymcr. 

mCneS ™«Riif director, has sold 25,909 shares, 

crease proms. ■ - • Bambergers — Pearl .Assurance 

bolds 485,000 shares (5.017 per 

ccounts Burma Mines— Davis Invost- 

senhy some ... -• ments (Jersey) holding is 3.17m. 

BSfrrrfidhy. shares (23.41 per cent)— pre- 

3 vlously 3m. shares. 

lerstoye ■ ■ DoradR Holdings— River Plate 

our . - . and General Investment Trust in- 

avebsea creased Its holding to 250,000 

shares (6-05 per cent.). 

Fraser Ansbacher — J. M. 
Button, director, has disposed of 

ound 400.000 shares leaving holding 

ltd 35,000. „ _ 

Johnson Matthey— Johannes- 

• burg Consolidated Investment 

SJnfiSS holds 3,830200 shares and Pruden- 

tial Assurance 855227 (both over 

jgKhaEd 5 per cent.). 

Arab stales David Dixon and Sou Holdings 

— H. Turpin, director, has 

. in _- acquired 3.000 shares making total 

WStnmb 137,500 (9.46 per cent). 

llMtjons, . . Gibbons Dudley— Pearl Assur- 

wouldbe Branches in: ance bolds 5.0U per cent of 

■ • Bahraia • Djiboiiti • India • Jordan shares. _ . . 

nitely Lebanon • Oman - Qatar • Saudi Aniiia ^“ K ! H ^?uU*^2t“S! 

S «« Swiuorland.* United AiabEmiralfiS 51,950 shares reported to have 

iy//\vas • ^ been sold arc in fact on loan to 

iliUieless Yemen Arab Republic ^ ^ and Prudential retains 

its beneficial interest Pruden- 
tial's holding is unaltered at 

e . Braby Leslie— British Empire 

aand . j & London Main Ollice Securities and General Trust 

K .-usaate. tiolds 14,919 of S£ per cent 

. IT A Preference shares. 

3 more than London ^ ^ • Home CounUes Newspapers — 

hand. Telephone 01-638 2366 Telex 884293 County Newspapers has disposed 

lur branches , , of 10.000 shares reducing interest 

ninedbythe and at to 1,437,000 (57.48 per cent). 

?Q bring. Falcon House.curzon Street, . Batners (Jeweliers)— H. Samuel 

T nnrirmWlYRAA. has bought 100.000 shares making 

wMat-Son Tdex27«4 

director, has acquired 53.000 

successes ■ ^king total 237,100 (16.94 

per cent.). Shares acquired as a 
result of winding up a discretiun- 

oofcfcf obtainable from theSeavtaiy at Head Office. ary trust. w „ . 

Arana Group— Sir Juu&n fioogfi 

• ' bas bought 125,000 shares. 


meat wifi be provided for all or payments are several times '£303,000 for 1977, after a higher t<> 
raost of the group s workforce ln by profits, and while the midway surplus of £130,000 • 

Board would like to recommend against £2,000. 






Tnmover - — 



Trading profit 











Extra -ord. credit ... 







T(> reserves 

•Adjusted for KOI 9. 





and back in 


. j & London Main Office 
, ...uusgate, 

London EC2P2LA. ^ 

Telephone 01-638 2366 Telex 884293 

and at t 

Falcon House, Curzon Street, 
LondonWlY 8AA. 

Telephone 01-493 8331 Telex 27544 

British Airways are now Mj£ 
operating 6 flights a week Sm 

from Gatwick to Zuridi. gpff 

Theyleave dailyat -- MM 

0800 (except Sundays), ||||| 

arriving Zurich.0930. jMBSSjSs 
The return flight 
leaves 2000 
Saturdays), ■ 

So nowif you’ve HE 

business in Switzerland you * 
can fly from either Gatwick or 
Heathrow. And be there and 

Ask your'Travel Agent or 
British Airways shop for details. 

B 32*2> < W'- r 

>• Vy 

w**?.** -: 

""sil v" : =v v - "••• ? ’r-‘ 

y j® v- :;xr$ 

e i • 


Fly the flag, fed at home . 

i** ■ 

financial Times- Wednejsday April s 3S7&- 


international financial and company news 


Pabst expecting sharp 
decline in first quarter 

Goodrich iH 
deal with 


MADISON, April 4. 

:K Strong profit growth, from £1 4.76 million to 
£1 8.03 million. 

$ Road haulage profits maintained despite intensely 
competitive conditions; many costs increased 
above the rate of inflation. 

TREASURER of Pabst Brewing 
Mr. Jay B. Pieper testified in a 
hearing for the Wisconsin Com- 
missioner of Securities that 
Pabst net earnings for the first 
quarter of 1978 were estimated 
to be approximately $l-9m. or 22 
cents a share, compared with net 
earnings of $6.8m. or 80 cents a 
share for the similar period of 

3? Storage contributed almost £2 million byway of 
additional profit. Cold storage in particular had a 
very good year. 

H: Results of the plant hire companies more 
satisfactory than at one time expected. 

Industrial removal and engineering companies 
performed well even though not at full stretch. 

The estimate was made at a 
bearing on APL Corporation's 
proposed takeover of Pabst 
through purchase of .52 per cent, 
of the brewer’s stock . 

Mr. Pieper did not explain the 
sharp drop in estimated first 
quarter earnings, though a num- 
ber of factors have been sug- 
gested as being responsible for 

the steep decline. The year ago 
quarter was “exceptionally 
good." in part reflecting some 
buying in anticipation of a strike. 
Also labour and materials costs 
have been rising faster T hw n 
selling prices. 

Mr. Pieper told the state’s 
Security Co mmissi oner that Pabst 
has obtained short-term lines of 
credit but that a larger amount 
of long-term . loans would be 
needed to keep the company 
financially healthy. Be added 
that such' financing would be 
difficult to obtain if APL gains 
control of the company. 

At the end of March Pabst had 
$7m. of cash on band, down from 
838.5m. a year earlier. Mr. Pieper 
said. He noted that lines of credit 
for $5m. each had been obtained 

from the Marine National Ex- 
change Bank of Milwaukee, the 
First National Bank of Chicago 
and Manufacturers Hanover 
Trust of New York. 

The Marine Bank credit ‘ was 
made available on the condition 
that Pahsfs management would 
not be changed. 

Mr. Arthur Lindettauer, of the 
auditing firm Price Waterhouse, 
told the commissioner that if 
APL issued the debentures neces- 
sary to gain control of Pabst; 
APL would not have enough 
money to pay the interest on the 
debt. APL proposes to offer S26 
principal amount of 10 per cent 
subordinated debentures plus S2 
in cash for each Pabst share up 
to 4.1m. shares. 


K. F. Goodrich has signed a 
technical assistance agreement, 
with Sabriea de Pnens Fapobol 
Sari 'of Portugal, reports AP-DJ 
from Akron. Goodrich will 
supply technology and produc- 
tion advice on all Fapobol pro- 
ducts including bias^piy qnd 
radial tyres. Fapobol wiU dis- ' 
tribute Goodrieh tyres in 

Midwest Exchange 
to report heavy 

losses on operations 

STP— Estnark 

3: Recovery in profits of the exhibition companies 

Brokers back Litton shares 

STP and Exmark have received 
letters from the Ufi. Justice 
Department’s Anti-Trust divi- 
sion requesting information 
concerning their prevkrasly- 
annomtced merger agreement,, 
reports Renter. The two com- 
panies last month agreed on a 
merger under which STP would 
become an Esmark unit 
Esmark said it would pay $22£0 
for each of STP’s 5.2m. shares. - 

Sound results from the reinforcement companies 
bearing in mind thedifficulttrading background. 


Banking purchase 

^ Warehousing and cold storage companies in the 
Netherlands produced excellent profits; road 
haulage companies affected by lack of traffic. 

% Modest contribution from the French companies.- 
Refrigerated transport undertaking acquired at 

sfc Australian companies again produced increased 
profits due to a very high level of activity in the 
first six months. Falling away in activity as the 
financial year ended. 

% Although there are few signs as yet that 1 978 
will produce a climate favourable to profit 
growth, profits to date are ahead of those for 
last year. 

Full report and accounts available from 

the Secretary, Transport Development Group Ltd.. 

Kingsgate House , 66-74 Victoria St. London SWT E 6SR 

SIGNIFICANT long term attrac- 
tions are seen in the shares of 
Litton Industries by two major 
Wall Street stockbrokers. Both 
Merrill Lynch and Dean Witter 
have examined the prospects for 
the outcome of Litton 's un- 
settled claims on Naval ship- 
building contracts by its subsi- 
diary Ingalls Shipbuilding, 
which is currently seeking an 
adjustment of l.lbn. to contract 
ceiling prices in a long standing 
dispute about repricing an 
amphibious assault vehicles 
(LHA) and destroyers. 

Merrill accepts that the con- 
tracts may remain unsettled and 
could result In a substantial one- 
time write off. But the stock- 
broker believes that such a 
settlement would ultimately 
benefit Litton by Improving cash 
flow at Ingalls, eliminating liti- 
gation costs and - by removing 
what it describes as a “substan- 

tia) negative" overhanging the 

Dean Witter sees a strong like- 
lihood of an out of court settle- 
ment of the company’s claims, 
within the “relatively near 

On the basis of its survey of 
Litton’s outlook. Merrill fore- 
casts earnings for 1978 of $1.70 
a share, with $2.00 to $2.25 a 
share in prospect next year. 

However, since the claims on 
the Naval contracts remain un- 
resolved at present Merrill goes . 
no further for the present than 
to predict that the shares will 
“ perform about in line with the 
overall market” 

For 1977, Litton disclosed 
earnings of $1.40 a share on a 
sales of 83.44bn. 

Merrill expects its forecast for 
1978 to be borne out by return 
to profitability at Sweda. the 
principal business systems and 
equipment group and by earn- 

ings gains at Western Geo- 
physical. which operates in the 
field of professional services and 
equipment for the gas and oil 
exploration industries. 

The defence, commercial and 
marine systems division, which 
incorporates Ingalls and in 1977 
turned in around $ 12 bn. out of 
S3.4bn. total revenues, has seen 
many refinements in operations 
recently, and Merrill expects this 
process to. continue. The firm 
expects Litton to withdraw from 
its more cyclical operations in 
this division, or to counter- 
balance such cyclical areas by 
adding product areas with 
greater potential for growth- 
while at the same time possibly 
withdrawing from unprofitable 

Merrill’s review ends with the 
comment that Teledyne, owner of 
some 26 per cent of Litton’s 
outstanding stock, has indicated 
that the shares are an invest- 

The Permanent, which is the 
parent company of Canada 
Permanent Trust and of Canada 
Permanent Mortgage, has com- 
pleted its purchase, for 
£210,000, of control of its 
banking subsidiary in the UJL; 
Canada Permanent AFT— now 
to be ealled Canada Permanent 
Trust (UJL), writes Terry 
Byland. Permanent already 
held over 30 per cent of the 
subsidiary, and agreed earlier 
this year to take up the option 
on a further 20 per cent stake 
then held by AFI Group. 

Sonthem slides 

T&e Midwest Stock Exchange, 
second in the U.S. to the New 
York Stock Exchange last year 
with, a trading volume of $S3bn. 
expects to report a large loss for 
1077 and is laying off some 300 
of its 750 employees. The price at 
a seat on the exchange has fallen, 
-to $175. from $80,000 In the late 

Last December, Mr. Michael E. 
Tobin, .under pressure from the 
membership, resigned as the Mid- - 
west’s president. 

. While opinions vary -regarding 
tiie Midwests’ plight a senior 
partner in a Chicago brokerage 
house and former chairman of 
the exdiange says: “ I think there 
is .a strong possibility that the 
Midwest won't be around in 10 : 

The Midwest and the six other 
active U.S. stock exchanges— 4he 
New York, American, Pacific, 
Philadelphia, Boston and Cincin- 
nati — face an uncertain future as 
a result of recent government 
moves to restructure the securi- 
ties industry, particularly in the 
planned creation of a central, or 
national, securities market This 
would permit all investors and 
their brokers to execute trans- 
actions in whatever market offers 
the best price for a particular 
security. A number of the 
regional, or non-New York, stock 
exchanges could fold in the hew 
competitive environment and 
even the New York exchanges — 
theJtfew York Stock Exchange, or 
“ Big Board,” and the American 

•- CHICAGO, Apia A''... ’ 

Stock Exchange, or Amex3 ■ 
threatened by the prospect 

automated trading that could a • 

ceivably make the. -exchu 
floors, superfluous. ■ . ^ .. 

. Many of the Midwest’s W ' 
cntnes say, arise from sew ' 
costay blunders. The biggest « ‘ '■ 
say, was the -Midwest's. sloVm - ' 
in -offering listed stock optk • 
which have proved- a bank' , 
for some other exchanges. (tt 
. Exacerbating the problems -if Iff 
hero the .catastrophic reducdl U 
in the Commission income of/ 
Midwest's, membership sincej 
Securities and Exchange Comt 
sioti in 1975 forced the seritri - 
industry to end fixed broker 7. ‘ 

commissions, letting qach film-.- 

its own. fees. The ensuing .w - : 
of brokerage-house failures t - 

mergers has cost the Midwest* : • 
patronage for its various servV 
The Midwest’s volume is e ' 
puny compared with that of ' : 
New. York Stock Exchange. " 
recent years, the MWweri -..- 
acco unted for only about 4 
cent of the total , share vohj' 
in list stocks while the ; 
Board’s share has remained " 

85 to 90 per cent 
Instead of being a saviour,- '' 
Midwest exchange’s options j - 
gramme has proved -to be'i 
nightmare. By the time;.' 
Midwest started trading -opti-j 
in late 1976, .the CBOE. AnJ 
Philadelphia and Pacific; ' 
picked off most of the attrae - 
option names.'- 

lank P-*' 

Turnover £'000 

Profit before tax £'000 

Net assets £'000 

Return on cap. employed % 
Earnings Pence per share 

Dividends Pence per share 

Net assets Pence per share 
























7 2. 





39.6 ! 



Standard Oil confident of growth 

Southern Company the 
Atlanta-based utility concern 
reports a 24 per cent fall in 
pre-tax earnings for the first 
two months of 1978 to $35.4m. 
or 26 cents a share compared 
with the like period last year. 
For the full year however the 
company managed a 10 -per 
cent rise in profit at $1.86 a 
share against $1.77 on sales .17 
per cent ahead .at $2.7biL, 
AP-DJ reports from Atlanta. 

Beker accounts queried 

NEW YORK, April 4. 


STANDARD OIL (Indiana) is 
confident it can maintain past 
earnings growth and rate of 
return, chairman Mr. John E. 
Swearingen said to-day. Since 
1960 earnings have Increased at 
an anhual compound rate of 12 
I per cent 

Higher prices expected for oil 
and gas In the future win help 
sustain - growth in profits, Mr. 
Swearingen declared. ^ Inflation 
of costs will be a factor, but on 

the whole we believe higher 
prices will bring our company 
higher earnings." 

The company’s current objec- 
tives are a 13 to 15 per cent 
return on equity and the pay- 
ment of 35 to 40 per cent of 
earnings in dividends. In 1977 
the company- earned $1.01bn. or 
$6.90 a share — up 14 per cent 
on the previous year. 

Capital spending in 1978 will 
total S2.3bn. compared with 

S1.9bn. last year, of which SLIbn. 
will be spent on exploration and 
development in the U.S. com- 
pared with $7S0m. previously, 
the chairman added 

U.S. development spending 
will be concentrated in the 
Willis ton basin. North Dakota, 
and the Michigan basin, together 
with the Appalachians, where 
the company recently made a 
significant gas discovery. 

Jewel — Skaggs - 

Jewel Companies, the Chicago- 
based food retailer has reached 
an agreement in principle 
with Skaggs Companies, a Salt 
Lake City-based operator of 
drag stores for a combination 
of the companies on a tax-free 
basis, AP-DJ reports. Skaggs’ - 
stockholders would receive one 
share of a new company to be 
called Jewel Companies Inc. 
for each share of Skaggs. 


Arthur Andersen and Co, has 
questioned the carrying value of 
virtually all of the company’s 
assets in the United States, West 
Germany and Italy. 

- This qualified opinion on the 
company’s 1977 financial state- 
ment- was revealed by Beker yes- 
terday that the same time as it 
reported a net -loss for the 1977 
fourth quarter of $31-3 rm, com- 
pared to a $4.6m. deficit in the 
previous year’s fourth quarter. 

The chemical and fertilisers 
manufacturer also said it was 
doubtful that it would be able 
to; mept.. revolving, credit ..and. 
term loan payments due to a 

NEW YORK, April 4 r 

group of eight banks iater /- 

Arthur Andersen's. qaah _ 
tion of the company’s accpi . 
also asserted that the camp* 

operations “will be signifies ’ 
affected by the company’s ah 

to refinance its debt and to r _ 
required loan repayment* { 
continuing operations, joim: 
tores and asset disposition,” * 
Beker, which has not dlsdi ' 
the book value of the-- as' 
questioned by the auditors,: 
peated that zt had violated 
tain covenants of both it» : ~ 
and German loans. Its cttfr. 
debt in the U.S. total $128 
and $10.7m. in Germany.', jS - 
$9S5m, of long-term deb&f- 
been reclassified as curreaf 

Alia- 1 


Big discount for Mexico 

Coal strike 





Golden Eagle Indonesia Limited 

a wholly owned subsidiary of Ultramar Company Limited 

Eurodollar financing for the 
Badak Liquefied Natural Gas Project 

BOTH dollar and D-Mark sectors 
were * quiet yesterday. The 
DM250m. issue for the United 
Mexican States was quoted at a 
discount of 2-2 J points In first 
time trading. This is large by 
the standards of the D-Mark 
foreign bond market as in other 
markets, but was generally ex- 
pected by the market because of 
the tightness of the ttnns. 

In the sterling sector, prices 
were also more or less un- 
changed. Interest to-day will 
focus on the Gestetner deal, 
which is expected to trade for 
the first time. 

In the yen bond market In- 
terest has been stirred by the 
fart that the American company 
Sears Roebuck is considering 
issuing yen bonds via Nomura 
Securities. If it materialised, it 
would be the first such issue by 
a foreign company. 

It seems that no final decision 
has been taken by the company. 

but that there is no legal bar to 
such a move. 

The possibility of a Japanese 
yen issue for a foreign corporate 
borrower has been eased by an 
an April 1 change in Japanese 
tax rules. 

Japanese securities sources', 
said yesterday that there is not 
even a legal requirement for 
companies to. collateralise bond 
issues — that a simple negative 
pledge putting the securities on 
the same rank with already out- 
standing debt would satisfy 
Japanese regulations. 

However, they noted that it 
has been customary In Japan for ! 
Japanese companies to provide 
collateral for their bond. Issues, 
and that the absence of such 
collateral might reduce demand 
for hoods. 

The next Swiss foreign bond 
issue will be for the Liechsten- 
stein-based company HiltL It 
will be- for Sw.Frs.25in. 

. CLEVELAND, April 4, 
CHESSIE System, the railway 
holding company reports a first 
quarter net loss of $66.9nm up 
from the year-ago figure of $7.4m. 
Revenue for the latest period 
was $255m. against $315m. __ 

Chairman Mr. Hays T. Watkins 
blames the coal strike and the 
tough winter, saying that if it 
had not been for these factors, 
the company would have had a 
profitable first quarter. 

AFDJ .. ‘ 1 

Corning Glas 
earnings slip i 

NEW YORK, April.. 
CONSOLIDATED net intanu 
Corning Glass Works for; 
first quarter slipped from $! 
to 522m., or from $L36 to4 • 
per share. Mr. Amory Hodgl r ■ 
Jnr., chairman, said that: Ll.. 
first quarter shortfall ocas, 
during the first four week; - 
the quarter. Business reborn ; 
strongly in the last eight w- — - 
he said. Sales for the qni 
•■ose from $269.4m. to $275T ‘ 

Li-': . 

Interim Results 

Increased Home and Export Sales 

Increased Pre-Tax Profits 


Morgan Guaranty Trust Company of New York, Agent 

r ^ 







t j 




Canadian Imperial Bank of Commerce 
Morgan Guaranty Trust Company of New York 


6 months 

6 months 





Dec. 1977- 

Dec. 1978 






Profit beforeTax 



interim Dividend 



; h mill 


Unaudited Group Results far the 26 weeks to 24th December 1 977. 

The William Boulton Group Limited 

Burslem • Stoke-on-Trent • England 

: 4 : ?f*;i 

The Bank of Tokyo Trust Company 
First National Bank in Dallas 
Manufacturers Hanover. Trust Company 
United California Bank 

26 weeks to 

26 weeks to 

52 weeks to 








Profit before Taxation 

' 384363 







Profit after Taxation 




Earnings per share 




Barclays Bank International Limited 
European American Banking Corporation 
Morgan Grenfell and Co. Limited 
Union Bank of Switzerland 

The Directors have declared an Interim Dividend of 1 .Op 
per 1 0p ordinary share (1 976 : 0.3p) payable on the 
30th May 1 978 to shareholders on the register as at the 
close of business on the 28th April 1 978. 

As forecast in the annual report a substantial improvement 
was made in this half year and the Interim Dividend 
equals the dividend paid for the whole of last year. 

March 1978 

Whilst sales continue to be ahead of last year,- we must 
remind shareholders that the bulk of the company's profits 
arise in the first half of our year. However, we feel that if 
existing trends are maintained our profitability should 
continue to increase. 

4th April 1978 

J. P. Gould, Chairman 


To fbe Holders of * 

6£% Subordinated Guaranteed Convertible ^ 
Debentures Doe 1986 ‘ 

(Convertible Into Common Stocfc > . 


Commins Engine Company, Inc. ) 


.v Effective immediately, the conversion •. - 

at which said Debentures of. intQ ' * * 

national Finance N.y. : , may be converted 
Common Stock of Cummins Engine 
is reduced from $56.50 for each «*are ofC°m®° , . 
Stock to $54.50 for each, share ^ Ccmmon St , - 
This reduction, has been computed ' , . 

with lie Indenture under which The Debenture. 

- OTMMIN§®GINE^B^I^f4^ ■ 

" . ■ L;'KHoagiand,jr..-Trea^ i 

* H. t 






increases earnings by 14 % 


(ABN), Holland’s larger Sfe to mnSSs whJStfi ■ a ?!F ,t 5 d to almost 27 per cent. land, the foreign share of earn- 
ing group, faces problems™ on & the of tte domestic «*4it portfolio, inns is nearer 50 per cent. 

IWhn^wf on its commission lead to^som? ^wvte customer lending has Reflecting the sluggishness of 

lousiness. This means, the bank business suhsMiefrtp* * nthi»r« s Brown strongly in recent years, economy in Holland and 

'I s ““^lasly ..taWtaPX' Tte® Dr. Batenb^noted. ciateti {"J". Dr. Batenbwg said ABN 

S^lL to B m L *£'?» Profits, reported 8 IM per (SnmaS Dntch '>“*>«* ™* 15 W «”t-. I turned down the opportunity 
-managing Boardcbairman Dr. mnetDrnftt to ffitoiSmS compared with 17 per cent in t0 be manager or co-manager of 
^Andre Batenburg; said at the in 2077 ™ 197e - reflecting the hesitant several Eurocurrency loans in 

^ir^entatiouofthtaininaireport whi^wMlsi^ww^hiS growth of the economy. view of the unacceptably low 

This makes the bank DartiAi- at AT5 „ , margins being set for some new 

jlarly- sensitive Tn S * FLB3 -® bjl - This growth came ABN; which has the most ex- borrowers. 

% betw^^rates^on J 01 3 igl L5 etwork of any ^ bank is ako reaching the 

borrowed and, lent funds, ^iv earocor ‘ JJg* hank, atmbuted about a limits of Its credit lines to a 

t« -TShmSSL- rose 17 JB per St* AS? Efi&j£ Sttto’ET* Vir^we* 
W^bSarSJSB SUS2MSS* 3SS «i * flight decline on the HS^vSShT uZsl& 

,ia =y 

!■* >'iv 

■ ’--ks * -. '?• 

V 4 -’ 5 -' -nr*.’ 

bank pays more after good year 

W ^UMOVAI . VIENNA. April 4. 

.I" CSWlkAL instUute of Am- director general.- Dr- Helmut of 32 per cent In its balance net income - jumped by 5B per 
or ■*.;^- 1 ®v lan credit cooperatives, Gen os- Klauhs said that in its fiftieth sheet to Sch-2.8ba. cent. to Sch.64.4m, 

I*'- -~-d'«ss: ; '^j^sjienschaftUche Zentralbanfc (GZB) business year there was a 19.6 Last year was good for busi- Foreign business at the end of 
.7:' .*'*"■? Wtf w?** increasing its dividends from PCf cent. pse In the crasolidated ness. Dr. Klauhs stressed. Port- last year accounted for about 
1 ‘ S-.ficv p 1 ^* Her cent -tt. in M r Mn 4 <■— balance sheet to SdL52bn. Tak- fplio investments and foreign one-fifth of the balance sheet 
* ««i r. °® nt ' •* or Ine the group as a whole. In- business were the briaht snots, and contributed IS ner cent, of 

lv Sincv' V^n Der ceAt-tn in balance sheet to SdL52bn. Tak- fplio investments and foreign one-fifth of the balance sheet 

:-^r 5 . £”3* OT 7 tag the group as a whole. In- business were the bright spots, and contributed 18 per cent, of 

•■n-nttfd f c . ■** ^ baslc c ®4>it a l of eluding the Raiffeisen-building Net interest income was profits before tax, the director 

-I ’.b» ! n-^\ .^^h-oOOm. ($35.7m_). Paid up society, insurance, leasing, etc. Sch.517ra. against SchJ53m., general revealed 
j>r was raised to Sch£00m. companies, total assets rose by while the intake from comm is- He also referred to the success 

w-rc- =- , ■* ' fc mle t'n December and a further rise to P® cen( - to Scb.72.7bn. last sions was SchJ>5.6m <Sch.583m.). of Dm.lDOm. and $40m. bond 
1. *s> -n-’Lfr* rE *Hch^o6m wac -mnmnm.ri *_ y*»r. ' After taxes of SchiJOm. issues floated by CZB on the 

d" t "r^ E - ilarch - • .announced In ■ groap also Induded the (Sch.25.6m.) and allocation to Euromarket. The bank partici- 
dwr-si -vl% awn ? i te. « . . small .m e rchant bank, Bankhaus statutory reserves totalling pated m 190 foreign Euro- 

•„ a5 ? e "s opw -Presenting the results for 1977, Kathrcin which reported a jump Sch.5l.7m. (against Sch^5.7m.), currency loan syndicates. 

Deutsche Bank 
DM9 dividend 

East Asiatic in South Africa 

6y Guy Hawtin 

FRANKFURT, April 4. THlJ East Asiatic Company, the cut back 00 investments In South Investment would only make East 

DEUTSCHE Bank,' West Gw- major bonitii tr ying and Indus* Africa. Asiatic companies uneconomic 

rtllA J many’s largest commercial bank, trial company, wW not reduce its , “J a our view, which is shared and open the field for com- 

fS fl 1 i Prifllr 0-4 ^ s^ootmced that it -is , by important leaders of the black petitors. 

M UC tlCTrecommending a ' dividend of ^ its sdb«id)ane8 in ma j 0 £^ ]B South Mtieit ^ H 

DM9 per DM50 nominal share for South Africa, Ito Mogens Pagh, foreign companies setting a good s t “ c LSf* 

.‘'Ta yosk 1-1977. the chairman, told -the annual example can contribute to a East Asiatic has no plans to make 

Although -the cash payout Is meeting of shareholders. positive development," said Mr. Sf w ^vestments in South Africa, 

-its i.f e-m ^Jjjown on last year’s DM10 share- This was the company’s Pagh. SLfahu”^! 11 ^ 

. ^^,wh° pay federal income reaction to an action programme He also said that to withdraw J?!Jr tabI j® °J d i D l p 0 tSSim 

Ar.i?rM t -j c :ax wiU receive an increase in aifopted by the Nordic Foreign from South Africa would be dd U 10 

<:• vf :b> ct^pasi'! gTe®! earain Bs ar a: result of the Ministers in February,' -which letting down the company’s 

. vr’.-i v>3.: ih< —recent corporation tax reform, called on Nordic companies to employees, and that reduced 

r- "v't x * b*; In addition* -to the cash divi* ■■ ■■»■ » ■ ■ j ■ » 

.'•'5 :i - ; v •‘•.r^-mVjSJend, they- will receive a coupon^ 1 " ' ’■ . I 7 \f nI 

AKa-LaM nse- ^ Y r\ \ 

... _ o :..7;r*ii2aiTist personal -taxes, worth 111 

- . - - - . . BY JOHN WALKER-/-- STOCKHOLM. April A _ V ) 1 

. - ... -oas News of the dividend follows a I I \^/ I 



Saudi takes 
10% holding 
in French 

By David White 

PARIS, April 4. 
SAUDI Arabian businessman, 
Mr, Afcram OJjeh, the man who 
bought the luxury liner France, 
has expanded bis French 
interests by buying into an 
important civil engineering 
company, Dumez, In a deal 
worth about Fr5.65m. t some 

The Nan tc ire-based com- 
pany. which is aeiive in dam- 
building and oiber projects In 
Africa and the Middle East 
as well as in France, said Mr. 
Ojjeh's company. Technique 
d’Avant-Garde (TAG), had 
bought 19 per cent, of its shares 
on the Paris Bourse. 

The deal Is linked to a 
protocol agreement under 
which TAG, which Is registered 
in Luxembourg, and Dumez 
will set np a joint civil engi- 
neering company in Saudi 
Arabia. No further details of 
the proposed company were 
disclosed, except that it will 
have a Saudi majority. 

Dumez, which is largely 
family-owned, bad a group 
turnover of Frs^.Tbn. last year, 
a company spokesman said. 

-Mr. Ojjeh, who bought the 
France last October for 
FnLdOm. with a view to turning 
the former pride and joy of 
tbe French passenger fleet into 
a tourist centre, was recently 
reported to be taking a 20 per 
cent stake In Lignes Tele- 
phoniqtzes et Telegraph iques 
(LIT), a specialised telephone 
cable company in which the 
largest Inter* st Is held by the 
Thomson-Brandt group. 

The French-based business- 
man’s other interests have 
tended towards the transport 
field. Mr. Ojjeh has a 44 per 
cent stake in a small domestic 
airline. Air Alpes, and shares 
in other regional air com- 

Credit Suisse prepares to 
sue over Chiasso affair 


ZURICH, April 4. 

A SERIES of civil suits is being others were generally not active of the losses involved. Dr. 
prepared by Credit Suisse against participants in the transactions Aeppti told shareholders that 
persons seen as responsible for concerned, but bad known that total losses could not be deter* 
tbe irregularities disclosed last tbe general management was mined until divestment of Texon 
year at the bank’s Chiasso Ignorant of the existence of un-. assets. These currently stand 
branch. booked guarantees. With one at Sw.FrsiffTm. in tbe Credit 

Speaking at tbe bank’s annual Suisse accounts. 

branch. booked guarantees. With one at Sw.FrsiffTm. in the Credit 

Speaking at tbe bank’s annual Suisse accounts. 

general meeting in Zurich to- The suits will take some time 

day, chairman Dr. Oswald Aeppll The $115m. Issue in convert- to come to court, evidence de- 
sald damages will be claimed ible bonds planned by Credit pending upon documentation 
against two former members of Suisse will carry a coupon of needed for the criminal pro- 
the Chiasso branch management «s cen j_ 15 year ceedings. These will probably 

and three Chiasso lawyers as offered to share* not be staged until next year, 

former officials of Texon. He Credit Suisse has applied to the 

said that present evidence n»Mers of rfgWs oua Appeal Court of Canton Ticino 

showed these persons to be one tor dSM oasis, ana every f 0r permission to see this 
” initiators and main actors In two bonds will be convertible documentation, 
the affair.” into one share. Apart from the Chiasso case, 

Tbe irregularities disclosed last ■ Credit Suisse is to bring civil 

April at the bank's Chiasso proceedings against former 

branch involved some S.Frs. exception, the entire branch deputy managing director Sergio 
2.l7bn. (Sl.lSbn.) of clients’ management has already been re* Demieville. These will concern 
funds which had been im- placed. Demievflle's M massive exceeding 

properly directed to the Liech- All responsible persons were, of bis authority” in connection 
tenstein company Texon-Finan- Dr.' Aeppli claimed, to some with the Italian milling coxn- 
zanstalt. They eventually led to degree financially interested in pany, Molini Cert os a. 
write-offs of SFrs.l^bn. (S650m.) the Texon transactions. Over a Dr. Aeppli stressed that 
in the 1977 accounts of Credit period of years they had drawn Credit Suisse’s equity was intact 
Suisse. fees, expenses and other sums despite the Chiasso affair, and 

The bank will also sue a group from Texon, or emoluments the bank's profitability un- 
of persons present at a meeting from Texon subsidiaries, without broken. The write-offs were 
of the entire Chiasso manage- these M in part substantial made up about one-third by the 
meat in early 1975 which at the amounts'* having been reported liquidation of unpublished re- 
time — roughly two years before- to head office. serves, one-third by the revalua- 

the Chiasso scandal was disclosed . Tbe persons, will be sued in tion of securities, participations 
—decided not to inform head keeping with their financial and real estate, and one-third by 
office of irregularities. potential, the damages amount- the sale of securities and partici- 

Dr. Aeppli said that these ing to only a very small share pations. 

Turkish plants feel cash pinch 


ANKARA, April 4. 

BMC Industry and Trading Com- stopped its three assembly lines motive company, Tofas, a 
pany of Turkev has just resumed from September and laid off partnership between Italy's Fiat 
manufacturing' after stopping all about 750 workers. The com- and several Turkish concerns, 
assembly line operations at Its pany could not obtain spare including MKEK and tbe Koc 
automotive plant in Izmir three parts because of a continuing group. 

months ago through lack of hard critical shortage of foreign Tofas, starved for spare parts 
currency to import spare parts, reserves. The last assembly line and unable to have $25 m. it 
A six-month acceptance credit was halted in November. owes to Fiat transferred to Italy, 

extended by British Ley land will The BMC plant manufactures was forced to bring forward the 
enable BMC to operate at 3040 lorries, minibuses and agricul- summer recess and shut down its 
per cent, capacity for four to tural tractors and has an annual plant in Bursa. The directors 
five months, the company said, capacity of 15,000 vehicles. are hoping for a period of grace 
BMC, which is 26 per cent. Si milar difficulties are being during which they can find 
owned by Leyland, had gradually experienced by another auto- foreign currency. 

v^^recent corporation .tax reform.! called cm Nordic companies to employees, and that reduced 
In addition* to the cash divi-i 

Alfa-Laval orders rise 


STOCKHOLM. April 4. 

-a Substantial rise in the bank’s ALFA-LAVAL, the Swedish company amounted to Kr.l.4bn^ 
'• -f profit The -fixtl year’s figures will dairy, farm equipment .and in- or IX per cent higher than in 

n ^ 

n ) 

. j. ! - j it expected earnings for the year reeeivedbythe group from out- at the beginning of the year. 

:r 15. i-Xsl La be up* by a fifth.' ■**■ -•• > side* customers amounted to Invoiced sales increased by 5 per 

• . . Gern?. The bank, plane to pay KrA4bn- 19 per cent lip over cent to Kr.l-Sbn. 

‘^rzz-. The bank. ..plane to pay Kr.4.4bzL, ; 19 per c 
'.'•>cT3 K>M110m,- into published reserves;' the - corresponding 
-.ici IB OTOTOuared to DMXWta. &yearago. M76.* ;*'.-* 

capital resources ■ wUT be . r 

Canadian PacHfe limited 

t up c 

tie - corresponding -period - - in The -dividend la to remain un- 
876.* '*'.-* • ■ ■ ; ' changed it Kr5 per share. 

«**&> m J* e S«m« 1 t no, i n ,or to 

nd of the year at ^25bn. was econom j c trend. The investment 

alsed to DM3.45bn. (Sl;73bn.^ 

• /m rom xuaaaon. 

Corning Gl* _ . ■ 
earnings slip Fitzwiltott - 
-v. back in profit 

. >TIIi . . . . 

•• •" ■=. *iV.*v:ss r By Giles Merritt 

■ :'r r 2 ^ DUBLIN, April 4.' . 

end of the year at RrASbn. was 

9 per cenL higher toan at the « is smi weak. a^ £ most 
1 corresponding Teri^ * sector where Alfa-Laval cus- 

Uarliex. tovutaeR , tides for the ^ to be found., the 

PVJSS ?* 0 * :h - per C0Ut Current forecast is that the 1978 

to Kr.4^ ha- 

re suit will be lower than that of 

L Orders received by the parent 1977. 

Lindt expanding overseas 

Hinhlinhfc 1 fn 1977 fhe Company's 
■ l, y i ■■■SJI consolidated net income reached 
a record level of $247.0 million. This was nearly double 
the earnings of five years ago and was $56.5 million, - 
or 30%, higher than in 1976. Per Ordinary share, net 
income amounted to $3.41, an increase of 79 0 
over 1976. 

Dividends of 950 per share on the Ordinary stock 
were 90 more than in 1976; this increase was within the 
limits allowed by the Anti-inflation Board. Of the 1977 

for sections of the main line through fhe Rocky 
Mountains to assist in meeting Western Canada's 
future transportation needs. CP Air ordered four new 
aircraft Canadian Pacific Consulting Services 
undertook new assignments throughout the world and 
signed a msyor contract to design a1,500-ign iron ore 
railway in Algeria. 

All the signs suggest fliat 1978 will be another 
difficult year for the Canadian and world economies. 
Government actions to stimulate economic activity are 


:.*•** J: - Ability in the *** mo mh period SWISS chocolate concern the parent undertaking— which 

„ . .. K 'nnded December 31, 1977.. . In u . . SDrueneK foresees last year rose much faster than 

- wf.^te interim report, Fitzwtiton iti „. home sales despite recessionary 

c - ^jati cl pates that in the second better growth opportunities trends and the 

■ »nalf of the year ending June 30, .abroad than on the domestic appreciation of the Swiss franc— 

iet earnings will show a further market • This was. stated at a company has licensees in 

■ Press conference m Kticnberg Germany, Italy and France and 

* . The group’s after tax earnings of parent compaiw^ Choco; j n 1977 acquired a 65 per cent. 

^ £322,000 (some 8600,000) for ladefhbriken Landt and Spruengii gtake in the French chocolate 
he first h alf compare with a loss AG. While sales volume on the manufacturer consortium Fran- 
if £331,000 in the, same period home market improved last year, cak de Confiserie (CFC). 
n 1976, and 12-month losses that interesting growth rates were At present no actual shifting 
_ iy June 30, 1977 totalled^ ^jost no longer anticipated in Switzer- # pro a U ction activity was 

■ W -AiverXlm.' - land.*-. planned from Switaerland to 

■ afig Hfi The interim dividend is being -Lindt and Spruengll operations another country. However, it 

m 7T m ■ 8 Inised from 1^395p .gross per. abroad will initially be expanded might be H necessary to look into 

| S H ■■ [bare to. 2.3077p gross,' . whir* witton iflie framework of eristing this question ’’ if toe currency 

I K_ I because of a higher tax charge group facilities; according to situation, and the shortage of 

HI oeans -that the net dividend Is marketing director Dr. Emil E. suitable labour continued un- 

□aintained at l-5p per share. JaeggL Apart from exports by changed for the parent firm. 

dividends, 48.50 per share was the proceeds of dividends either being taken or are being proposed in a number 


nd Export Sal® 


from Canadian Pacific investments Limited, compared of countries, including Canada. These will be welcome 

with 450 in 1976. as long as they do not set in motion a new wave of 

Extraordinary income of $72 million in 1977 inflation. Having been badly battered in recent years, 

represented the Company’s share of the net gain by business confidence would be further shaken by any 
CP Investments on the sale of CanPac Leasing Limited threat of a resurgence of high inflation rates, 
in ApriL In the economic circumstances most likely to 

In many respects 1977 was an unlikely year for a new prevail in 1978, few sectors of the Company will find 

record in earnings. It was a year of slow economic it easy to achieve growth in earnings over 1977. New 

growth and accelerating price inflation which had a labour contracts have yet to be negotiated for pulp 

restricting effect on real disposable income, and hence and paper, iron and steel and several hotels, in most 

on consumer spending. Similarly, it had a discouraging cases after phase-out of inflation controls begins. The 

effect on business capital investment The major outcome of such negotiations will be significant High 

strength of the economy was in merchandise exports; world inventories could adversely affect prices of such 
particularly to the United States. The decline in the commodities as coal, zinc, pulp and certain 

value of the Canadian dollar gave added impetus to agriproducts. The outlook is promising for oii and gas - 
the export sector but also raised the prices of imports and real estate and generally favourable for the 
Into Canada transportation enterprises, except bulk shipping. 

General economic conditions thus left a great deal 
to be desired. However, a number of specific situations Canadian Pacific Limited 
were favourable enough to enable most of the Summarized Statement 

Company’s operations to do better than they had in of income 1077 i< 

the previous year, even if earnings in some cases still M . . o fr ' a i ZZZ 

fell short of providing ah acceptable return on- fr £ ^ T l * 

investment The oil and gas interests of Canadian ^ ^ " 

Pacific Investments gave a major lift to earnings, but cp TeIecommunicalions rf 

the year’s income flow was also significantly cp Telecommunications i 

augmented by increased earnings in most of the other cp Shins «a3i 

areas of that company’s activities. In -the transportation Miscdianwus l 7 J 1 

sector, airline operations were restored to profitability Inve stments Limited imo 11 

after two years of tosses, results of rail operations in ^ jncome of 

both Canada and the US. showed improvement, and mt consolidated it.i 

■ Income was up from telecommunications as well as income before extraordinary item 239 £ is 

from container shipping. The only operations that did Extraordinary item “ 73 

not trend upward were trucks, whose earnings were M ... , 

lower than in 1976, and bulk shipping and hotels, both wet income $247 - 0 ..... » l= 

of which incurred sizeable losses in 1977. PerOrdinary share: . 

The Company’s earnings achievements were income before extraordinary item $&3f $2 

matched by progress in developmental activity to Net income mi 2 

ensure the earnings of the future. PanCanadian Dividends 095 c 

Petroleum canted out an extensive exploration 

program and. has been acquiring land for exploration np Invesimenis Limiter! 

and development in the high potential oil and gas 

areas of Alberta and northeastern British Columbia. of Net income .1077 11 

Cominco opened its new ammonia-urea complex east : — ■- 

of Calgary, Fording Coal completed a program to oilandgas Si 02 $ 7 

increase the capacity of its treatment plant Pacific . Minesand minerals 4 U 0 3 

Logging planted more than a million trees and fertilized Forest products ms 

large acreages of forest lands. Dominion Bridge iron and steel 2&0 1 

acquired Amtellno, a U^.-based diversified Real estate n.6 1 

engineering, construction and manufacturing Hotels and food services tin 

enterprise. Marathon Realty expanded with new Finance zs 

shopping centres, office building projects and industrial other operations 43 

buildings. CP Hotels opened its new hotel at Montreal's investment income &5 

Mirabel International Airport and took over 7 ‘ 1 2047 14 

management of hotels in the Bahamas, in Mexico and °f outside 

in Israel. Chateau Insurance acquired the Canadian cpi sharehoJdere - ^ — 34 - 7 2 

business of Great American Insurance Company. Net income to cp Unfted 

CP Rail started construction on a two-tracking program beto.extiaordinary a^ __ $t7O0 Sfi 

Copies of the Annual Report may be obtained-from zhe Deputy Sacrcwry. 50 Finsbury Stjizam. London EC2A IDO 

; Profits 



c.197 7 
£ DD-J 




*D , 




(The Association of Electric Power Organizations of Croatia) 

As Borrower 

UJS, Ddlare 14,000,000 . 

----- Medium Term Loan 

■’ Guaranteed, by: 


Managed by: 





. Provided. by: 

Atlantic International Bank limited 
Canariian Imperial Bank of Commerce 
Mercantile Trust Company N A. 

National Bank’of North Am erica, Nassau, Bahamas 
. PKbanken (International) Luxembourg SA. 

RoyWest Banking. Corporation Limited 

Tbe;3hYndndal: : Bask <rf Canada 

Tbe Royal Banlcof Canada International LimitKi (Nassau) 

VITorld Banking Corporation 

— ■\V<*acb^- 

J Arranged by: . , ' . 


Canadian Pacific Limited 

Summarized Statement 

of Income 1977 1976 

Net income from: (in millions) 

CP Rail $ 543 $ 51.1 

CPTrucks 03 1.3 

CP Telecommunications 23 2.0 

CP Air 33 (93) 

CP Ships (103) 3.6 

Miscellaneous 73 15.1 

CP Investments Limited 1703 1173 

‘Equity in income of subsidiary 

not consolidated 11.1 8.9 

Income before extraordinary item 2393 190,5 

Extraordinary item " 73 - 

Increase or 

$ 3.7 
52 2 . 

Net income 

PerOrdinary.share: . 

Income before extraordinary item 

Net income 


$2473 $190.5 

CP Ii 


Summarized Statement 
of Net Income 

Oil and gas 
Minesand minerals 
Forest products 

Iron and steel 
Real estate 

Hotels and food services 

Other operations 
investment income 

Interest of outside 
CPI shareholders- 

Net income to CP Limited 

■1977 1976 

(in millions) 
$1102 $ 74.1 

413 324 

103 52 

233 13.5 

11.6 10.4 

( 4 - 7 ) 

23 23 

43 0.8 

63 1.5 

2047 1403 




Increase or 

$ 36.1 

. 5.1 
12 . 
( 4 . 7 ) 








ASSETS (M$ 000) 

Cash in banks, money at call and short notice . . . 

Loans and advances 

Bills receivable 

Treasury Bills and Government Securities 

Other Investments at cost 

Land, building and other assets . 

Total assets 


Authorised capital 

Issued and paid-up capital 

Reserves and balances of unappropriated profit 

Deposits (demand, savings, fixed, etc.) 

Deposits and balances of agents and banks 

Bills payable and other liabilities 

Total capital and liabilities - 































Head Office: 

21 , Jalan Melaka, P.O. Box 407, Kuala Lumpur 01-18, Malaysia. Tel: 03-205655 

52 Branches throughout Malaysia 

Overseas Offices: 


Subsidiary and 




64. Mark Lane. 
London EC3P 3EA. 
Tel: 01 -4882721 


Bumiputia Malaysia 
Finance Limited, 

24th Floor, 

American International 
Tower. 1 6-18 Queen's 
Road Central, 

Hong Kong. 

Tel: 5-249105 


Japan Press 
Centre Building, 

2-2-1 Ucliisaiwai-cho, 


Tel: (03)502-1591/2 

Correspondents in all principal cities of the world 

These sanities have been sold outside the United States, of America. This announcement 
appears as a matter of record only. 


22nd March,. 1978- 

U.S. $30,000,000 
Republic of Panama 

9i per cent. Notes 1983 
(Extendable at Noteholder's Option to 1988) 

Merrill Lynch International (Asia) & Co. 

Citicorp International Group- Asia 

Morgan Grenfell (Asia) Limited 

United Overseas Bank Limited, 


Singapore-Japan Merchant Bank limited 

‘ The Nomura Securities Co., Ltd. 
First Chicago Asia Merchant Bank Limited 
Sun Hong Kai International limited 

Singapore Nomura Merchant Banking 

ABN Finance 

Asia Pacific Capital Corporation 

ASIAC-AsSan Internati onal A cceptances Sc Capital 
, limited 

Ayala Finance (HJQ 


BA Asia BCCI Finance Infernafiooal Ltd- BNP Finance (Hong Kong) lid. 

Bnmipirfra Merchant Bankers Berbad Credit Xycraais Hang Kang (Finance) Ltd- 

BT Asa limited 


Daiwa Securities (HJKO 

DBS-Dahm Securities International 


J Jmifnrf 

Hamfeo Pacffic 

HiH Samnri PgcSC 


3BJ Finance Company (Hoag Koog) 



Tnfer- AlpTgi Asia (Singapore) 


International Credit Affiance 144. 

Jardine leaning & Company Edd^Iteabody & Company Korea Kuwait Banking Cfflporaiion KwraitPadfic Finance Company 
limited Limited 

Mamriacfnreis Hanover Asa, 

Morgan Gnarairfy& Partners 

Merrffl lynch Co. 

New Japan Securities International (Png Kong) I4cL 
j^omzara Europe N.V. Nranoralirfenalfonal (HbcgKong>IitL Okasan Intmatinml (Aaa)lti. 

SadanMerdim^Baiik^CorpoiatKBi,S€o^ XM. Sassoon & Co. (Pfe.) Ltd. 

New CtmrtMerdant Bankers 

The Nikko Securities Co, <A<aa) 

The Nippon Ka Hgyo K aiaariflrn (Asia) 

Orion Pacific 

SBCFmance (Asia) 

Schraders Sc Chatered 


Sumitomo & East Asa 

T tm ilwl 

Tabu Kobe Finance Hongkong 



Tbtyo Finance (Asa) lifl. 

Trident In toMaliu ual Finance 


TJBAN-Axalb Japanese Xfaanco 


UitiM Chase MadontBanfan 


TVaioIntawafioafll (HX) 


VftntflMii fntenafional (TLX. - ) I tiL 



AN1 and Comeng reach 
Bradken compromise 


Australian National Industries 
and Comeng Holdings, the roll- 
ing stock manufacturer, have 
finally settled their four-year 
wrange over control of the foun- 
dry groups Bradken Consoli- 
dated. The solution is that 
neither company will end up 
with outright control — hut they 
will pool their holdings and 
make a takeover bid for the out- 
standing capital in Bradken. 

ANT started the contest almost 
four years ago wfth a SA8.75tn. 
(SlOm.) bid for Bradken which 
was countered by a higher offer 
from Comeng. Over the next two 
years both companies made 
several more takeover attempts, 
and also bought shares in each 
other. The end result was 
that ANT finished with 34 per' 
cent, of Bradken and 2L3 per 
cent of Comeng. . 

ANr equity accounts for its 
holdings in both Bradken and 
Comeng while Comeng equity 
accounts to Bradken holding 
and also its 41 per cent, share- 
holding in Union Carriage and 
Wagon of South Africa. 

An uneasy truce has existed . 
for the past couple ofyears^Whetr 
Comeng made an -unsuccessful 
take-over bid for the tractor dis- 
tributor and steel - merchant. 
William Adams — which would 
have significantly watered' down 
the ANI stake — the ANT Board 
publicly criticised the move.. 

AM and Comeng have. how. 
agreed to pool their combined 
67 per cent stake in Bradken to 
exercise control, although they 
have invited the existing manag- 
ing director, Mr. W. E. Kendall, 
to continue in office. They have 
also agreed to make-an offer, to 
minority holders through ' a 
jointly owned company to be 
formed: however, the decision to 
exercise control does not depend: 
on the result of the bid, which 
will be unconditional as to the 

amount of acceptances. 

The offer is SA2.75 cash a 
share, which is slightly higher 
than the last sale price on the 
market of SA2.70. It compares 
with an adjusted value of 
SA1.24 for the original ANT offer 
and values Bradken at $A21m-. 

Full acceptance of the offer 

SYDNEY, April 4. 



would Involve 
SA8.75m. “ 

ANT will raise $A2.5m. df-this 
by - placing 1 . 88 m. shares: with 
Comeng at 5A1J36 — the same 
level as the market, price. 
Comeng will thus effectively "ont-v 
lay SA5.74m. and ; ANI only 

1 On ANFs current capital 
Comeng would increase its equity 
stake to almost 25 per cent, .but 
there are still no plans to equity 
account the holding. If allowance 
is made for fall conversion of 
ANTs existing convertible securi- 
ties which can run until 1984, the 
bolding will come back to 2L3 
per cent, exactly the level ANI 
.already holds in Comeng. 

.' Both companies have agreed 
that after the -ANI placement 
neither has any intention, of in- 
creasing its percentage holding 
in tile other. ANI and Comeng 
have also agreed, where appro- 
priate; to continue to seek oppor- 
tunities where they may co- 
operate in making investments 
on a basis similar to that pro- 
posed for Bradken. 

Bond Corporation back in profit 


SYDNEY, April 4. 

BOND Corporation Holdings, the 
real estate group, reaped the 
benefits of its consolidation pro- 
gramme of recent years, with a 
return to profits in the December 
half. The company made a profit 
of $A609,000 (SUS695.000) for 
the period, compared with a 
$A1-26 ol loss for the first half of 

The company has been selling 
off assets to reduce group borrow- 
ings after it experienced liquidity 
problems in the wake of the 1974 
collapse of the property market. 
The largest sales were the dis- 
posal of a major interest in the 
iron ore group. Robe River, for 
SA20m. in May, 19'6 and the 
sales earlier this month of a 
51 per cent interest in the 
Western Australian resort pro- 

ject to the other partner, Tokyu 
Corporation of Japan. 

REPCO, Australia’s ' largest 
manufacturer of automotive 
parts, has lifted its takeover bid 
slightly for Century Batteries. 
The Century Board • ’ hay 
unanimously agreed to recom- 
mend the offer and to accept for 
their holdings. 

Repco made an initial offer 
last month of $A2 a share, 
valuing Century at almost 
SAllm. It has now agreed to an 
increase of 5 cents a share, which 
will cost another $A275,000. 

Repco started with a. holding 
of just over 7 per ceuL of 
Century and has since raised 

this to almost 11 per cent, 
through purchases on the share 

John Fairfax, major news- 
paper. television and publishing 
group, lifted earnings almost 9 
per cent: in the December half- 
year, despite continuing losses 
by its Sydney newspapers, 
writes James Forth from 
Sydney. Group profit rose from 
SA4J>m. to SAA9m. ($US5 Bql) 
after tax on a 17 per cent, 
increase in . revenue . to 
$Al07.5m. (SUSI23.2m:). The 
interim payment - is 5 cents a 
share, on capital increased by a 
scrip issue — an - effective 
increase of 7 per cent . 

New issues up fourfold in Israeli market 


TEL AVIV, April 4. 

NEW ISSUES of IJ£4bn. ($250m.) 
were made on the Israeli stock 
market in the financial year to 
March — four times the amount 
raised in 1976-77. 

Israeli Deputy Finance Minis- 
ter Y. Flumin has expressed the 
hope that the losses suffered by 
those who bought at the height 
of the Stock Exchange boom and 
the subsequent sharp fluctua- 


tions. would not lead 
reversal of the trend. * . . 

At the same time he disclosed 
that long-t<* i saving by insti- 
tutional Investors has come up to 
expectations. Some I-£16.3bn_ of 
long-term bonds were sold at 
source during the first 11 months 
of fiscal 1977-78. or only I-£500m. 
less than planned for the whole 

However, direct sales to the 

public accounted for only 
LflJJbn. less Than planned for 
the whole- year. ’ 

:. However, direct sales to the 
public accounted for only 
LXL2bn. of the total, with the 
remainder sold to back savings 
schemes; pension and' provident: 
funds, and insurance portfolios, 
•Mr. Flumin urged the banks 
to consider launching new sav- 
ings schemes. 

withdraws ‘ 
bid for 


By Richard Stuart - 
. . .. J OHANNESBURG, April -r ■ $■ 
THE ' TONGAAT' group,.- 
morning withdrew its 130’ct . 
a share cash bid- for Prim n ' 
the large Transvaal based Ik ’- 
group, on the grounds that ' 
share-price has remained, aii ' 
of the offer ever' since it ■ 
announced 16 days ago w 
Tongaat made its bid, the shi 
were trading in the 90c »'■ ‘ 
but immediately moved at? 
130c. . Trading as -high as 
in heavy volume. ■ 

.The market behaviour car 
Tongaat off balance, but a 
re-assessing the situation a v * ' 
ago. it decided not to into 
the bid and reiterated tha 
was serious, about buying 
trol at 130c* but. not at a ML"' ." 
price. ; This statement had 
immediate effect of caRan - 
the premium to within 2c erf ' 
bid price, but failed to bra : 
below 130c. - 

Tongaafs withdrawal at 'V 
the market by surprise, but *• 
an initial period of hesitancs 
shares continued trading a' 7 
130c. It TOngaat had cbnddV 
the withdrawal of the bid ' 
tactic to remove the undid 
ning to the share price, tin ' 
appears to have miscalcnlah' 

Stelux looks 
for recovery 

in earnings : 

HONG KONG, - AprQ • 
STELUX Manufacturing V ■ 
pany, the watchmaking con'* 
has passed its interim dm. 
for the year ending Marriv 
The company said that a-b ' 
even position in profitabiStj. ' 
achieved in the nine moot' . 
end-1977. Overseas subrifi' ' 
winch were a source 1 of ad 
tial losses daring the pre- 
fiscal year, are currently, sbe' ■ 
improved operating results , ■’ 
It expects to record a pnri' - 
the fiscal year emtiug Mars'- 
1978, and believes that it. 
costing year earnings rf 
increase significantly. . .. 

■ In fiscal 1977, Steha -ieii 
a net . loss of 
(SUSlAn.), • after a- il 
profit of $HK41.79ia. - 

. * . -k. 

Ssecures cn 

tion, thet new joint, ventor' 
tween Gammon (Bong.-J;... 
and Swire Properties wOl:?.” 
operations with over SBK-- ' 
(SUS60m.) on the order f-- 
it was announced after 
Board meeting of tiie Wplh - 
pany, writes Daniel Nelwap - 
Hong Kong. The coostsj 
concern will also complete 
on behalf of Gam mon y 
Kong) worth about SKK70: . 

New issue 

Ibis advertisement appears as a matter of record only 

April 3.197B 






5V4% Bond Issue 1978/1 990 

Interest rate: 
Issue price: 



S'kVa payable annually on 1st April 

S9V« "A ; . 

12 years maximum 

after 6 years free of redemption through drawings by lot In 2 instalments 
of DM 15.000,000.- each, payable on 1 st April of each of the years 1985 and 1988 
and in 4 instalments of DM 30,000,000.- each, payable on 1st April 
of the years 1987 through 1990 

Frankfurt (Main), Berlin, DQsseldorf, Hamburg, Munchen 

Deutsche Bank 

also for 

Berliner Disconto Bank 



also for 

Berliner Commerzbank 



AkUoneesanaebaft, . . 
also for 

Bank fur Handel tmd Industrie 

Westdeutsche Landesbank 

Bank f Dr Gememwfrtsdiaft 


Bayerisdie Hypofiieken- und 

Bayerlscho Vereinsbank 

BeriJner Bank 
AKUangesel lachatt 

Berliner Handtis* 
tmd Frankfurter Bank 

Deutsche Gfrnzentrafe 
Deutsche KbmmunalbanlC* 

Hardy-Sloman Bank GmbH 

Merck, Findc& Co. 

1 Saariandisdie Kreditbank 

^ Aktiensasell3Chalt 

Simon bank 

SaL OppenhelmJr.&Cte. 

J.H. Stein 

Trinkaus & Burkhardt 

M. M. Warburg-Brinckmann, 
Wriz&Co. . 


Amsferdam-Rofferriam Bank N.V. 
Banque de Paris ei des Pays*Bas 

Banca Commerdafe Rricana 

Banque Popalalre Suisse SJL 

Kuwait Investment Company (SAK.) Soclete Gdn^rale de Banque SJL Swiss 

A Luxembourg SJL 

CrecfitSidsseWhBsWsia ' 

Union Bank of Switzerland 
(Securities) Limited 



Elected eum 


V* - 



A’-- - 

■ •if- 

J) **. . * U 4 


bid f > 



Costa Rica seeks Borneo finance 

' ,l . ■* Jl 

i?'-. .. 1 . =! t j»r 

i* *: r *j 

»•-.-? T. i£ 

... ’ ‘••-a-i- •’•wT 
1 ..... -..?** 

/-.f : 

■ *•*:/ ,3a,. 

- r--;r ■. ‘ c - of . 


? r-^l*****. 

!-.. V, .^5. 

' >'1 « is. ; 

■*■ ;• *■ 

•■. r.-.r!^ 

, Stel u\ look 

? or recovm 
m earning 

.. v • , ~=a:sf^? 

... .**»» 
'V.. ' eiisj* 

.... '•'•■•rtsiJt 

■ A •■*■? ; 5)i- r> - 

i ! •*• * • “'ll- -- ■ 

Ui 3 *: 

•’ - • - rt j 


. ■• • - i - .V.r*,. 



iP 05 COSTA- Rican Government 
seeking funds from private 
kwfcs to complete the 
financing of the Boruca 

alunumum project and its. asso- 
JjJjjS hydroelectric scheme 

which wU eventually coat more 
than S2bn. The. smelter is to 
produce 280.000 tonnes of metal 
a year. 

The- hydroelectric scheme Is 
.being executed by the Institute 
Costarri cense <te Electrieidad 
CICE), the state power and tele- 
comm uni cations concern.'' The 
Borneo dam scheme is estimated 
to cost some $800 m. of which 
the Costa Ricans hope that about 
a third will be provided by the 
World Bank, the Inter-American 
Development Bank, and the Cen- 
tral American Bank for 
Economic Integration and about 
another third by suppliers 1 

Farther funds are expected to 
be provided by an oil purchase 
facility provided by the Vene- 
zuelan Government ICE itself 
will provide some equity capital 
and may float a bond Issue in the 
Euromarkets. There remains 
some 580m. which ICE hopes to 
raise from foreign banks. This 
week. ICE signed a $22.5 m. 
medium term, loan for the devel- 
opment of thepower potential of 
the Ar ena l River. 

The Bo rue dam will have a 
planned capacity of 760 MW, 
four-fifths of which would be 
devoted to powering the alum- 
inium smelter. Speaking at a 
presentation in London yester- 
day Mr. Alex Murray, the ICE 
executive president forecast that 
power would be sold the 
smelter at a cost of between 20 
and 25 miles per kilowatt/hour 
(one mil equals one-thousandth 
of a US. dollar). 

Mr. Murray claimed that it was 
perfectly feasible to site another 
aluminium smelter in the Carib- 
bean basin where there were 
already several other similar 
smelters being planned. 

The dam and smelter are hot 
expected to be completed until 
1986, by which time the inter- 
national aluminium companies 
currently producing metal in 
the North-Western states of the 

U.S. would be having to face 
new commercial situations. 

Many long-term contracts for 
the supply of power to the com- 
panies in the States of Oregon 
and Washington at rates of 
between 3 and 5 mils would 
have expired and the companies 
would have to pay much more 
for the power without the 
assurance that this would be 
provided for thexo-on • a con- 
tinuous basis. This latter 
factor, ho claimed, would oblige 
them to instai their own power 

companies needing large 
amounts of electric power. 

★ * * 
Fetroleos Mexicanos (Pemex) is 
signing its Slba. Eurocurrency 
Joan in London today, writes 
Mary Campbell. The loan has 
been increased from an origin- 
ally scheduled SSOOm. The 
formal structure of the loan In- 
volves 15 managers, five junior 
managers, 11 eo-managers and 
32 other participants, bringing 
the total number of banks par- 
ticipating in the ioan to 63. 

CANADIAN Finance Minister Jean Chretien said that the 
st a ndb y credit facility the Government has with Canadian 
chartered banks is being increased to $U.S.2.5bn. from 
$Ii-S.Z-5hn. “In recent months, the net inflow of capital to 
Canad a, particularly that arising from the foreign borrowing 
of C a nadia n provinces, municipalities and corporations, has 
been low relative to the size of the deficit on current trans- 
actions in goods and services,” he said. “ For seasonal reasons, 
this deficit Is. normally much larger in the first several months 
of the. year than in the remainder . . . and under these cir- 
cumstances, the Government has used a portion of its exchange 
reserves to add -to. the net inflows of capital to Canada that 
finance the deficit in the current account of the balance of 
payments.” Recent borrowing of funds' In the U.S. capital 
market will replenish some of the reserves that 1 have been 
used In these operations. 

production facilities and at the 
same time increase the attrac- 
tiveness of the Boruca scheme. 

The smelter Itself was likely 
to be built and run by a con- 
sortium headed by Martin Mari- 
etta. the US. engineering group, 
which conld include European 
and Japanese investors. He put 
its cost at nearly $L3bn. Details 
of the deal would be negotiated 
with Government of President- 
elect Rodrigo Carao which 
takes office in a few weeks' time. 

“Mr. Murray- said that Costa 
Rica was currently harnessing 
only about 3 per Cent, of its 
hydroelectric potential and even 
by the end of the century it 
would only be using about 25 per 
cent. He added that Costa Rica 
with its tradition of. democratic 
government and . political 
stability was an attractive place 
for investment, particularly for 

The terms include a margin 
over inier-bunk rates of 11 per 
cent for a ten-year final 

Kuwait International Invest- 
ment (KIIC) has placed 5.5m. 
Kuwaiti dinars in promissory 
notes for the Kuwaiti trading 
company. Youssef Ahmed Al- 
Ghanlm and Sons. 

The amount of the issue was 
raised to KD5.5m. from KD3.75m. 
originally scheduled because of 
good demand for the issue, KilC 

The notes are in three 
tranches, lor two years with a 
coupon of 8 per cent, for three 
years at 8} per cent,- and four 
years at 8} per cent. J. Henry 
Schroder and Co. of Beirut is 
joint manager. 

The Abu Dhabi Gas Liquefac- 
tion Company is raising $100m. 
in the form of a two-tranche 

floating rate syndicated loan and 
a $25 in. fixed rate private loan 
from the National Bank of Abu 
Dhabi. The proceeds are to go 
towards the gas liquefaction 
plant on Das Island. 

Of tbe syndicated loan portion, 
$50m. is for eight years. Guaran- 
teed by the Abu Dhabi National 
Oil Company, it will offer a mar 
gin over inter-bank rates of i per 
cent, for two years and J for the 
remaining six years. Tbe $25 m. 
tranche is unguaranteed and 
offers a margin of 2 per cent, 
throughout the seven-year matu- 
rity. The management group is 
not yet complete on this loan but 
is expected to comprise 10 banks. 
Lead managers will be the 
National Bank of Abu Dbabi and 
Abu Dhabi Investment Company. 

International Combustion 

Australia has obtained a trade 
credit facility of S3Q0ui. for 12 
years from a group of ten inter- 
national banks headed by West- 
deulsche Landesbank, Krediet- 
bank and Credit Commercial dc 
France. The facility will enable 
the international Combustion to 
make deferred payment arrange- 
ments on four boilers which it is 
selling to the State of Victoria’s 
Electricity Commission. The 
boilers, each with an output of 
500 megawatts, are for use in the 
Loy Yang power station project 
in the Latrobe Valley which is 
scheduled for commissioning in 

It is understood tbat the credit 
facility, which . is effectively 
guaranteed by the State of 
Victoria, will pay interest at 
margins over inter-bank rates of 
3 per cent for the first two years. 

I per cent, for the next eight 
years and 1 per cent, for the last 
two years. There is a five year 
grace period before repayments 
start and on almost equally long 
availability period during which i 
the loan will not be fully drawn. 
The loan was signed on March 13. 

The Algerian company 
Solltex has arranged a $25m. 
seven year loan from a group of 
banks headed by Credit Com- 
mercial de France. The spread 
on the loan, which is guaranteed 
by Banque Nationale d'Algerie, ! 
will be 13 per cent. Repayments 
start after 42 months. 

.r. .. >•*-• 
■ ^ y. 5 

Sasebo secures emergency assistance 


SASEBO HEAVY Industries, 
Japan’s 'eighth largest ship- 
builder, has secured emergency 
assistance from Government as 
part of its plan to extract itself 
from fiancial crisis. 

The. Ministry of Transport and : 
tfe Ministiift' of -Finance -.a»r 
studying emergency rescue 
measures, including a mora- 
torium of the • repayment, of 
Y21.4bn. • ($98m.) • worth of 

borrowings (as of the end of 
December, 1977) from -Japan 
Export and Import Bank' and the 
Japan Development Bank, and 
the possible suspension, of . in- 
terest payments. The Govern- 
ment also may give top priority 
to Sasebo in extending orders 
from the Maritime Safety Agency: 
and the Defence Agency. - " 

Apart from these emergency 
measures, the Ministry of 
Finance has revealed tbat the 
Government is already extending 

TOKYO, April 4. 

loons to Sasebo to bridge its 
deficits during April. ; 

Because of the world-wide 
shipbuilding ..recession and the 
impact on export order bookings 
by the rise of the yen, 28 medium 
and small shipbuilders, . have 
gone bankrupt since the begin- 
ning of 1977- . Howqver, the 
Government’s involvement in 
rescue efforts for a specific ship- 
builder is unusual, r 
■ According to the Transport and 
Finance Ministries; the Govern- 
ment rears that Che huge accu- 
mulated fosses of Sasebo would 
amount in Y75bn. or more. At 
the same time the company’s 
failure .would have a considerable 
impact on Sasebo city's economy 
where 133 of Sasebo’s affiliated 
companies and 14 per cent, of 
the population of the city would 
be hurt. 

Early this week. Mr. Kazumi 
Tsuji, Sasebo's mayor, came to 

Tokyo to appeal to governmental 
agencies and Sasebo's major 

Sasebo's financial plight 
worsened around last autumn, 
when the company was heavily 
hit by the higher yen exchange 
rate. Sasebo's new -ship orders 
were nil in the September 1977 
to March 1978 term, while there 
were only two ship orders in the 
March to September 1977 term. 

As a result, capacity utilisa- 
tion has been slashed to 50 per 
cent of its peak. Under- 
employed workers (6.600 per- 
sons) and excess capacity have 
become a heavy burden for the 

According to the Ministry of 
Finance, Sasebo requested 
Dai-Ichi Kangyo Bank (its main 
bank) and Nippon Kokan (its 
second largest shareholder) to 
send directors to Sasebo in order 
to bolster management and to 

take more severe rationalisation 
measures. However, this move 
has been postponed due to 
opposition from Kurushima 
Docks (its main shareholder). 

Discord among Sasebo’s share- 
holders has left the company in 
the doldrums In recent months, 
and it was not until last week 
that the company and DKB went 
to the Government for help. 
According to the bank, rationali- 
sation measures should produce 
YSbn. in cost-cutting but the 
company will still need about 
YlObn. in fiscal 1978 to cover its 

So far, the ‘ disagreement 
among shareholders has meant 
that DKB could not itself pledge 
to extend loans of this size, since 
the bank insists on a unanimous 
guarantee for the company's 
debts from its major share- 





Alcan Anstralla Si pc 19» 









Australian M. A S. 9}pe *9Z 



Br. Columbia Hrt. Tips S5 

Barclays Bank Woe 1992- 



Bo water 9ipc IMS 



Can. Pie. sine 1984 

98 . 


Dow CbeoicAl too 1988 „ 

Credit National 84 PC 1988— 


ECS 7toC 1982 . . „ 

Denmark 84 pc 1984 

ECS toe 1995 






EEC 7Jpc 1982 



RIB SI pc MBS , W ■ 

KMT Hoc 1969 ..... — £1 

Ericsson S3 pc USB — ........ 

ESSO 8DC 1988 NOV. ’Olt 

Gl Lakes Paper Sloe 19 St Wl 

Hameraey 9lPC 1992 — Hi 

Hydro Quebec flpc IS9t ... Xt 

ICI 8*pc 1987 — ... 97 

ISE Canada 9Jpc IMS 19» 

HacmfUan Bloedel Bpc U92 Mi 

Massey Feryuson WPC ■fll 95* 

Michel In 9ipc UBS — ^ MU 
Midland Inc Fin, Shu % M 
National Coal Bd. 8pc 1887 
National Wstmnstr. SptW i« 
Newfoundland 9pc IMS ... U04 
Norgcs Kom. Bk. Hue 1992 *8* 

N orpine Si pc 1989 «. 

Nondr Hydro 81 PC U93 — 

Oslo 9pc 1988 WJ 

ports Aiuonomes 9 pc 1981 wi 

Prov. Quebec 8oc 1995 WJ 

Prov. Saskatcb. 83 pc USB 991 
Reed International 9pc o7 824 
HUM 9pc J992 ... — r _^- - *} 

Selection Tin. Sloe BB - . 901 
Skand. Knskflda 9pc 1ML.. » 

SKF Sue US7 

Sweden iK'dum! 81 pc 1987 9 jJ 
united Biscuits toe 1988 — j*Sl 
Volvo toe 19B7 March . — >2i 


Australia 7ipc 1984 - 

Bell Canada 7£pc 1BS7 ...... 34i 

EEC 7Idc 1984 

Enso Gutxelt 81 pc -1934 „. 
Gotaverteo 71pc 1983 . — 

Kocknms toe UBS 

Webelln 8} pc 1983 

Montreal Urban Slue 1981 
New Brunswick toe 1984 ... 
New Bnun Prov. Blue ’S3 
New Zealand Bipc 1986 ... 
Nordic Inv. Bk. 7loc 1884 
Norsk Hydro 71 pc 1982 ... 
Norway 71 pc 1982 «... — 
Ontario Hydro toe 1987 ... 

Singer 8{pc 198! 

S. of Son. JEiec. «pc 1981 
Sweden (K'dotn) 7Jpc 1983 
Swedish State Co. 73pc DZ 

Telmex Sine MS4 .... 

Temweo 71 pc 1987 May 
Volkswagen 71 pc 1987- 


Allied Breweries 101 pc 'N 

Citicorp 19pc 1983 

Courts ti Ids 3Jpc 1989 

ECS Woe 1988 

E1B Hoc 1988 

Hue 1992 ....: 

Finance for 1ml. 91pe 1997. 
. Finance for Ind. Upc 1989 

Fisnns IBipc M87 

INA lBpc 1988 

. How ntrtw lOfpc 1989 — — - 

Bean Ulpe USB 

Total Oil Upc 1984 

-BFCE Hue 1988 UU 1 

BNDE Bipc 1986 - 971 

CFE 9|pc 1988 971 

Denmark Upc 1984 1DH 1 

ECS UPC 1989 971 

BIB Upc 1990 971 

Euratam S3 pc 1987 ......... 100 

Burofima 5Jpc 198S 1001 

Finland Hpc 1980 » 

ForsmarkB 5|pc I960 BM 

New Zealand Sjpc 1980 ...• 1001 

Norcem 53 pc 1989 1001 

Norway 4*pc 1983 - 1W 

PtaUppInes 6 toe 1985 97 

Sweden Opc 1989 lOli 

Tarn- mam oh ahn 54 pc 1093 100 

TVO Power Co. 6 pc U88... » 

. Venezuela Spc 1988 99 

, World Bank 5|pc UM ...... W* 

Badkof Tokyo 19B4 7UUPC 991 

BFCE 1884 Sine Wi 

-BNP 1983 fit it pc - 991 

CCF UBS toe 994 

CGMF 1984 74 pc 9SJ 

Creditanstalt 1984 7tPC — 991 

Credit Lyonnais 1983 Spc... Ml 
DO Bank 1982 7l5i&pc ... MI 

GZB 188L 81 in pc 1003 

InU. Wsouutr. '84 715 ]sdc 993 

Lloyds 1883 7! pc 1001 

LTCB 1933 too »» 

Midland 1982 Spc 191 

Midland 1987 7U»pc 99 

OKB 1983 73PC 991 

SNCF US5 Bloc 89> 

Sid. and Chtrd. '81 7U U pc 8BJ 
wntt. and ciyns *84 bihpc Mf 

Source: Whlto. Weld Securiiles. 

American Exprera 41 pc '87 

Ashland 6 PC 1988 

Babcock A .Wilcox sine '97 
Beatrice Foods 44 pc 1932 
Beatrice Foods 41 pc 1992 

Beecbam Hue UBS 

Borden Spc 1892 

Broadway Hale -4}pc 1987 

Carnation 4pc 1987 

Chevron 5 pc UE3 

Dart 4lpc 1987 

Eastman Kodak 4ipc 1988 
Economic Labs. 4|pc 1987 

Firestone Spc 1988 

Ford ape 1988 

General Electric 41 pc 1987 

Gillette 4Ipc -1B87 

Gould Sue 1S87 

Gulf and Western Six- loss 

Harris 5pc 1092 

HoncyweU spc 1988 

ICI 61pc 1992 

INA 6 PC 1997 

Inch cape 6toc 1992 

ITT 4inc 1987 

Jusco Opc 1992 

Komatsu Tipc 1990 

J. Ray McDermott 4lpc VI 

MaisashlU filpc 1980 

Mitsui 71pc UB0 

J. P. Morsan 41p c 1987 ... 

Nabisco 54 pc 1988 

Owens Illinois 4jpc 1987 ... 
J. c. Penney 4lpc 1987 ... 

Revlon 4ipc 1987 

Reynolds Metals spc loss 

Sandvlk 8 !pc 1988 

Sperry Raod 44 DC 1887 

Squibb 41 pc 1937 

Texaco 4 bpc 1988 

Toshiba 6! DC 1992 

Union Carbide 4 toe 1982 ... 
Warner Lambert 4jpc 1987 
Warner Lambert Lpe 1993 

Xerox Spc 1988 

Source: Kidder. Peabody 

BM Offer 

1859 107 
95 96 

121} 123 

77 784 

198} 109} 

78 79} 

110} 111} 

126 137 

139 141 

157} 158} 

187} 109 

77 784 

132} 1334 

92 934 


February 1978 



.alrona 1 ® 

•gSsA ■ 


The Commercial Bank of Kuwait S.A.K. 

Kuwaiti Dinars 6,000,000 

KD 3,000,000 7K% Certificates of Deposit Due 9 February 1980 
KD 3,000, 000754% Certificates of Deposit Due 9 February 1981 

Theabove Certificates of Deposit were placed by 

gnffRif Tnfernati onal Investment Co. s.a.k. 

This announcement appears as a matter of record only 

February 1978 


Kuwaiti Dinars 7,000,000 

Soci6t6 Anonyme Marocaine de Flndiistrie du Raffinage 

S 1 ^ per cent. Guaranteed Notes due 1983-1988 

(redeemable at the option of the holders in 1983) 

Unconditionally and Irrevocably Guaranteed by 

The Kingdom of Morocco 

Kuwait International Investment Co. s.a.k. B. A.I.L (Middle East) Inc. 

Abu Dhabi Investment Company Arab African Bank - Cairo 

The Arab Investment Company S.A.A. (Riyadh) 

Arab Petroleum Investments Corporation 

Banque Marocaine du Commerce Exterieur Banque Nationale de Paris 

“Paris Branch” 

Alahii Bank of Kuwait (K.5.C.) Arab Investments for Asia (Kuwait) k&c. Arab Trust Company KJS.C. 
Chicorp International Group Tbe Commercial Bank of Kuwait S-A-K. First Boston (Europe) limited. 
Financial Group of Kuwait KS.C. The Golf Bank K.S.C. Tbe Industrial Bank of Kuwait KS.C. 

Kuwait Financial Centre SAK, Kuwait International Finance Co. S.AJK. ‘‘lQFCO” 

The National Bank of Kuwait S.AJSL 

Al gemene Rank Nederland N.V~, Bahrain AI Saudi Banqne 
American Express Middle East Development Company SAX. Arab Finance Corporation SJLL. 

Arab Ffrnpgiai Consultants Company S.A.K. Tbe Arab and Morgan Grenfell Finance Company limited 
Bank of Lebanon and Kuwait S A.L. Banqpe de Paris et des Pays - Bas Bybios Arab Finance Bank (Brigmm) S-A. 

Byblos Bank SA.L. European Arab Bank Ltd., Bahrain Enn^pean Banking Company limited 
Frab Bank International Kredfetbank N.V. National Bank of Abu Dhabi Riyad Bank Limited 
Union de Banques Arabes et Europeennes - URAE. Soditi Anonyme 

Tnis announcement appears as a matter of record only 

February 1975 

u.i L i - 1 n»ii i^-. J .a 

Beal (Estate Companii s.ak 

.US $37,000,000 

Unsecured Multicurrency Project Financing for the Construction 
of an integrated real estate complex in Central Kuwait comprising the 
Kuwait Meridian Hotel and the SaOna Commercial Centre 

Managed by 

Kuwait International Investment Co. s.a.k. 

Bnrgan Bank s.a.k. 


Arab African Bank - Cairo 

Union de Banques Arabes et Francaises-UJEL A.F. 

(Rahram Branch) 

Provided by 

Arab African Bank-Cairo 
The Commercial Bank of Kuwait s.aJc. 

Bnrgan Bank s.aJc. 

Financial Group of Kuwait k.s.c. 

Frab Bank Group 

Kuwait International Investment Co. s.aJk» 

Union de Banqnes Arabes et Francaises-U.B.AJ. 

(Babnia Breach) 

Union Mediteiraneemie de Banqnes 


Kuwait International Investment Co. &a*k** 



Early modest rally on bargain hunting 


NEW YORK, April 4. 

BARGAIN HUNTING was mainly have approved a merger into to $ 1-85 — the company said it GERMANY — Shares rose afresh an easier note, halting the re- 

responsible for a modest recovery Martin Marietta for $30 per share may suspend producttion indefl- in lively trading. cent .recovery movement and 

on Wall street this morning in and the New Jersey Bureau of nitely. due to low demand and Deutsche Bank advanced DM3.30 leaving the General Index 137 

moderate activity, after the Securities has ordered BOC depressed prices for copper and on news that it will pay a dividend down at 91.62. Torres Hostench, 

decline spanning the past three International to stop acquiring zinc. of DML8. Dresdner Bank, due to however, put on 2.50 points to 

trading days. Airco shares and to refrain from PARIS— Bourse nrices after announce its dividend later this 88. 

The Dow Jones Industrial exercising voting rights an shares initiall y reartine further’ turned week ’ rose DM&50. while JOHANNESBURG— Golds de- 

Averaze showed an improvement acquired after January 4. Martin u n wards to finish on a mixed note Volkswagen, which is also cllned in line with lower Bullion 

of -.60 at 753.64 at 1 p.m. and Marietta eased i to 5255. following aniet trading ahead of expected to announce a dividend indications. 

Jewel declined *1 to $19i and tffi TSrmffion of thenew gained 20 pfennigs. Elsewhere. De Beers fell 13 

Skaggs had not opened for Government. The Bond market was firm, with cents to 'R5-27. Other Metals and 

trading — the two companies have o an v s stores. Hotels. Steels Authority issues gaining Minerals were mixed in slack 

agreed to merge. and SentiS^ were mixed to U P t0 13 P fennigs. The Regulating trading.- 

THE .AMERICAN SE Market firmer on balance, while Elec- Authorities sold paper worth a HONG KONG— The market was 

128 "3 h’dex picked up 0.30 Jo tricals and Constructions 'were 

Index picked up 0.30 to triads and “Constructions 'were DMJ.6m. against m a period of consolidation. after 

at 1 pm. Volume L84m. higher but Stores ended mostly DM5.7m. sales on Monday. Mark recent rises, with a firm under- 
] 0 ^.g r Fore ign Lo ans also hardened. tone and generally steady prices 

A" put Bonygnes recorded a net rise . SWITZERLAND — Prices were prevailing in active ^trading. 

the NYSE All Common Index was 
14 cents firmer at $49.58, while 
sains outscored losses by a six-to- 
five margin. Trading volume 
increased lo 14.20m. shares from 
yesterday's 1 pm. figure of 
12 . 62 m. 

An analyst commented that he shares (2.05m7). 

thought investors were becoming Resorts International w ^ ij j _ 

less panicky over inflation and the on SI to S3I and the “B" surged 0 f 37* r ‘at~lFrs.643r whne**Dnme* just a shade softer for choice in Hong Kong Bank were im- 
possibilities of both higher ahead S7 to $50. The company bas yiere 56 up at Fre.870 bat Carre- continued quiet dealing. changed at $HK15.70, while Hong 

interest rates and slower economic applied for a temporary New f 0qr closed 19 down at Frs.1^38. Among Banks, Credit Suisse Kong Land gained 5 cents at 

growth. Jersey casino permit for Atlantic hardened slightly following the JHK7.45 and Swire Pacific “A’ 

Airco, after being delayed aft city and could be operating a BRUSSELS — Market _ moved chairman's statement at the were an exceptional 20 cents up 

yesterday and initially to-day, casino there by the end of May — irregularly in thin trading, with annual meeting, but 

is — He rfi»»tn K - — -- - some profit-taking in evidence. Baehrle, in Financials, 

Hoboken, with _ official strikes is to Sw.Fr&2455. 
continuing at its Olen and Among Industrials, 

Hoboken plants, shed 25 to Registered and JehnoU 

mm BJ7rs.2,120. Sw.Frs.20 apiece, but 

Selma lost 50 to B.Frs.3,200, but retreated 75 to SwJYsJ,650. buying interest. The Nfkkei- 

GB inno-Bm. still buoyed by The MILAN — • Mixed movements Dow Jones' Average advanced 
Share prices continued to higher net dividend declaration, were recorded in thin trading, 4941 to a record 5,479.74 on 

more lower on Canadian Stock advanced 40 more to BiH2,000. with some gains marking a selec- volume of 370m. shares (290m.). 

Markets in fairly active early AMSTERDAM — Stocks closed tive return in buying interest Pharmaceuticals, Foods and 
trading yesterday. The Toronto quietly mixed. AssicnraxJoni Generali, Plat assets issues, including 

Composite Index shed 2.4 more Akzo, among Dutch Interna- IF1 Privileged, Montedison and Neal Estates, led the advance, 

advanced SI to $433— its directors the first casino in that town. 

Closing prices and market 
reports were not available 
for this edition. 




Canada lower 

OerUkon at 9HK6.75, but Jaxdine Mathe- 
receded son, ahead of next w eek’s results, 
reacted 10 cents to SBKL3.4Q. 
Nestle TOKYO— Shaking off the pre- 

put on vious day's setback, the market 
Sandoz returned to a rising tack on fresh 











American Motors 

.. 231.200 


Sears Rtiehuck .... 

. -Jba.OOO 


— J 

I'.S. Steel 

. 237-1)0 


— 1 

K Mart 

. 138900 


General Minors .... 

. 172.000 


— 1 

Ralston Purina 

, 182900 


— £ 


.. 102.600 


+ 11 


. 148.300 


lien, l-'nhlic Uui.. 

12,1. OtM 


— 1 


L.056.S at noon, while Golds tionals, rose Fls.1.10. while else- Snia VIscosa were among Indus- followed by big-capital stocks, 

receded 10.5 to 1,286.0 and Banks where, NedUoyd, Bijenkorf and trial and Financial leaders to AUSTRALIA— After the recent 

1.09 to 249.19, but Papers again Am fas gained ground, but Improve. Both Olivettis also rose, advance, stock prices made a 

resisted the downtrend, adding Naarden, Gist-Brodades and but both Pirellis and Italcementi mixed showing with an easier bias 

031 at 103.75. Ahold were each around Fl.i lost , ground. affected by dull London and New 

Or phan Mines “A” lost 20 cents lower. SPAIN — The week began on York markets, a fall in Overseas 

metal prices and technical adjust- 


n.y.sR. at.i. coitinow 





)l«r. ' 



liar. . liar. 
28 I 27 


(Since compii&t'n 

Apr. 1 STar.i 
3 I 31 



| Mar. j 
29 | 

| 1978 

! High | 


43.44. 43-85 


&8JI7i 51. Bfi 

1 foil) 



Rises and Falls . 

i Apr. 3 | Mar. 3I[ Mar. 30 


lii'Iuntrial... 751.04 757.36 750.62 761.78 75B.04i 753.21 817.74 

1 i 1 ii/i) 

H'lm-B’n-fs* 83.46; 83.541 89.72! 63.8% 89.831 89.771 80.66 

! I I l ! («/ll 

•iti 207jaxii 207.76 207.88 BOBJIl 216.77 
^ ' 1 13/11 


. ..... C3/H 

Trjulina v*jl 

9.72,} 69.8s| 8S.i 

^ . ; Tran«iMt...J 205.40 1 207 

' “ Utilities, : 104.74! 106.661 lOB^zj 106-Ds! 105.851 105.7^ 

*>1ina v*ji' , ! j I I 

‘XW's t : 20.230| 2fi.1S0| 20.46a| 2&,45ll| 21,600 1B.670j - 





126/ 1) 







luuea traded. 

Kina.... ,i 

Falls , 


New Higbs_ 

Now U)wa_ 













1051.70! 41.22 

(11/1/13)! (2/7/32) 

279 J8B 





* Kasin nt m rtex c/miwen from Augnot M. 







A T 




1 adust rta' 







172.811 174.98 (3/11 
18094| 19193 (31/3) 

152.90 (18/2) 
170.62 (30/1) 

TORONTO Composite 





1093.3 (31/3) 

998.2 (30/1) 







218.7 (1/2) 

195.0 (21(3) 




202.7] 1989 

214.4 (4/1) 

1949 (13/3) 


BHP came back 4 cents to 
$A5-98 and ANZ Bank lost the 
same amount at 5A2.71, whQe 
David Jones receded 6 cents to 
SAUL However, Sugar issue CSR 
gained 5 cents at $A2L55 and 
H. C. Sleigh added 4 cents at 66 

A bright sector in Minings was 
provided by Uraniums in response 
to Deputy Prime Minis ter Doug 
Anthony's . statement that 'the 
Government wants mining 
development to go ahead as fast 
as possible. EZ Industries rose 
14 cents to SA2.05 and Kathleen 
Investments 10 cents to SAL50. 

I nit. div. pdil % 

Mar. 31 | Mar. 24 1 Mar. 17 ■ Year ago (approx.) 



6.06 | 




Australia rt)j 468.63 
Belgium <fl>. 85.0d 


Apr. j Mar. i Mai. 1 Mar. 

3 j 31 1 30 1 29 

Mar. Mar. 

23 i 27 ! High 




r Inlutirtai? 


979I|I 9B.02j 98.24! 88.491 
8B.«6j 89.2 lj B9.4l| 89.64 

90.35- 87.631 10392 
| \ till) 

89.50 89.87, 2592 

1 (3/1/) 

(6/3 ( 
' (6/3) 










Ponce (It), eo.9 

German yttt) 802.3 

Ht»11awtl (§5)! 76.0 


• Mar. 29 | 

| Mar. 22 

Mareh L5 

Year ago (approx.) 

Ind. -Ur. vieM % 

j 5.46 { 

[ S.46 j 



In-1. P/h llatio 

| 8.48 




Dmt; Omvi. bottii yield 

! 895 | 

i 8.16 


7.74 - 



<911 60 A3 

Singapore il 
f&i l 





















(9 fin 













(1 0/2) 






























Spain (d) 

Sweden (ri 






004 n 













Indices and Dane dues (all base values 
100 except NYSE All Common — so 
Standards and Poors — 10 and Toronto 
308-LOW. (he Iasi named based on 1975/ 
t Excluding bonds. t4M industrials 
1400 rods., 40 Utilities. 40 Finance and 
SO Transport. t|) Sydney All OnL 
ill) ttoigia" SE 31/12/80. <••) Copenhagen 
SE 1/1/73. cm Paris Bourse 19SL 
(tt) Commerzbank Dec. 1953. iasi Amster- 
dam. Industrial 1970. (JIi Hans Sens 
Bank 31/7/ 84. i|l||> Milan 2/1/13. tai Tokyo 
New SE Vim /bl Straits Tones 1866. 
io dosed. «» Madrid SE 30/12/T7. 
ic> Stockholm Industrial 1/1/58. (Ji Swiss 
Bank Carp, (m Unavailable. 


Inv. $ Prem. at $2N0 to £ — 1018 % (100% ) 
Effective rate (at LS695) 44}% (431%) 


Y l \ 






Abbot* Lai* | 

Ad>.lres*>«iapl» —I 
• Aetna LUeJk Law! 

*;• .4ir Product* ! 

’••'Airtu i 



•; Alle*rbeo» Luiil.. 
Mle^lieuv P<>wei 
Allieil Cltemkal-! 

Allied 3t>>re« 

' Alii-, Chaiiuere... 

A MAX , 

’•* Amerada Uesa.... 
Atner. Airline.....! 
.Amer. Brands .... 
, - Airier. Broadcast.! 
. Amer. Can. i 
Amer. C.vamtinirt. 
Amer. Klee. Fow.| 
Amer. Express... ■ 
- Amer. B.jmePiwlI 
Amer. Medical..., 

. , Amer. Motors... 

Araer. Net. Gas-! 
“ Ainer. Bumdani. 

„■ Amer. SturtM 

; Amer. Tel. A let. 

Ametek | 



. Ampes 

Anchor Uuckinn. 

"I" Anbeuser Bcaeli.., 

■ Arroo.i Steel • 

,./.\jj.A i 

Afainwa Ull. I 

. Aaarco 

Auhiand Oil I 

i Ati.Kii-hbeld i 

Auto Data Pru....! 

. A VC i 

! Avcu_ I 

- Aron PnjdiM-Cx.... 
-i Bali Gas Elect... , 

Bank AmerL-a 

■ Banker* Xr .N.YJ 
. . Barber Ml... 

54se . 
425* i 
B87b [ 
387# ! 
18*4 ; 
185a ! 
36 ? 0 
34 * 

25 U 1 
97 B i 
45 *s i 
38-’t I 
07 *4 ( 

2 7a* 

4. a 
32 1 8 
16U i 
255 a 


10 1 2 

18fg • 

-451* : 
271® 1 

22* ; 
46Sa . 
25 i 
22 >* 
353a • 





















233 a 

21 (a 





0 OI 2 




253 a 

20s a 








a 7 b 







. Baxter Tra toqoI.J 

36<b 1 


. Beacrk-e Fool.....! 

23S, ; 


beetonDickenhOU 1 

3568 1 


- Bell A do well 

181* ; 


. Beodix .......i 

34is 1 


.< JJtngunr Lena 'U.t 



■ Uetblebum bteeij 



Black A Docker...! 

155b : 


Boeing ; 

33)* 1 


. Dolae Cascade : 

25is • 


- BonJen - [ 



Burg Warner 

271* . 


. Brualff lot. j 



. Brawam ‘A’..—— j 

141b , 


Brian ii My era ! 

29 1* . 

29 7i 

'■ BnL Pet- AUK... 

14i a | 


.. tirortreayUiaas.. 1 

28i B ! 


UiudmicIi / 

14i s , 


' Buevrus Krie ! 

171- 1 


' Build 1 

33 1 8 ] 


B ii linn Watch-.. 1 1 

55s i 


- Biirlingtou Ntimi 

37 » 


.’ ilumwgha | 



Complieli ?kiu 1 1 — j 

3. Caiujllau Paeiflo.l 
Can*! /buKkilpbwj 
v Camel ton 

- Currier* General I 
Cuter H*wipy.~| 
Cai erpii i*r Tram »i 

- CDS 

' CelaneseCorpn... 

- Central k S. W...I 
^ .CertBluteed .. 

C^»xna Alimit.. 
.. ChmwMjuibmtsii 
. Cbeiuhsi Uk.NV 
Chesebrsh IVinii . 
CheMie Sviein.. 

- LIiLj(i>d Bridge. 

- ChrumaJkjy. 


L'memina .......... 

I'm.'. MiIimtiiii.. 

Citlea ?erv ice . — , 

City In rafting...] 
Cn» Cub — — 

CnLgs Palm-- ] 

Colins Aiknusn.. 
Cotunitri* Ghu..... 
Cnlumbia Pk*t.~. 
L'ui 1 1 . 1 naCo jat A m] 
Lkirebustioa Eng 
Cornbustiun El,...' 
C'ra’w'tb Kdlsnu] 
■ I'oniVth Oil Kci| 
Ckniim. Satellite 


Cnont. Life Ins-' 

■ilVIUK ... 

Con. Edison h.X 

' ciansoi Fools | 

Uonaol Nat. Gas 
Cunmitner Power] 
.Continental Grp, 
CunUnenbU ull,. 
Cimlinenuil Tele, 

•- Conlnil Data...... 

Luo per Indus. — 

147b 1 
1Z ' 
243* , 

H3e : 


47 l B I 
46 j 
15 lg 1 
193* ! 
5 15 B I 
38 : 

223b I 
301* ! 
483a . 

217s ; 
2 Be ; 
205s ' 
47 1* I 

« S 4 ! 
o7&8 j 

11*8 I 

871* 1 
3358 I 
141* | 


am 5 

35U f 

10 *B I 

44 1 a | 
20 • 
23 la , 

2a i; . 

39sa i 

2oln • 
29 1 2 
251* 1 
153* . 
2»7a j 

lb in 
25 Lb 
16l 8 

371 * 














a7t a 
377 B 
201 * 
27la - 
101 * 
59 Tg 
167 a 


Uoruuigti tswv....; 

UPC lat'ntkin»i ' 












317 b 



28 lj 


Dan I ml ustrteB-i 

Deere < 

Del Monte. ! 

Deltona I 

Dentspiy Inter... 
Detroit Edison... | 
Dlsiuimii e>(umr(> 


Digital Equip..—] 
Disney iWait).— | 

Dover Corpn 1 

Dow Ubsm(a*l.... 

Die vo 


Du k*onu.— ...„ 
Eas-ie ttvher — 

Eut Alrlmea 

Eastman Kodak. 
Eaton - 

24l a 1 
385s j 

24 1* j 
8I4 1 
17 i s 1 
lb is : 
23 1* 1 
la*8 I 
5B7a 1 

417a I 

343 * I 

26 (g 



















B. G. * M 

Ei Paso K*i. G««J 


Em ere vi ElettriL- 
E iiierv Ai rPP lub l; 

Em ban ,* 

b.M.I ' 

Engei luuil.. — — — .| 
EnowrS... — 

Ethyl ! 

Exxon .... 

Paireblkl Camera; 
Feu. Uept.btorea] 
r'i test one Tire. ...j 
F*L Mm. Boston 4 
Plexi Van.— ...... f 

FKnutote 1 

Florida Power 

Fluor ; 







27 8 







14l 8 









27 8 
23 7 B 
34 I 2 

19 lg 


Ford Motor. 

Foremoat Mnk— . 

Fox boro — 

Franklin Alim 

Freeport Miners 

Paqiu Imbi 

Zli a 
45 ( 8 

1038 < 

45 tj 

G.A.F. 1 


lien. Amer. 


Geu. Cable 

Creo. Dyoamica.J 
Gen. Uieuirfcs— . 
General Fonla— 

Ueoeruf Altlla 

General Motors... 1 
Iren. Pule L’til— . 

GatbigtaJ __J 

lien ITeL Elect.. -| 
Gen. lyre....... — 


Georgia Psulflu... 

Getty Oil 1 

Gillette — 

timdrvb F.F„«. 
GoodyearTi re — 


UtSL-e WJL i 

Gl. Ante PaeTea' 
Grt. North (rca... 

UreybouiNi - 

liutt a Western. .. 

Guu On 

Baiiburton. — _... 

26 7 e 

24i a 
29S B 
7 *4 

Banna Mining..,,) 
Uandaeliieger — .{ 

iiteger , 

Hums Corpn i 

klpiiur U.J... ,.] 

licubieln I 


17 l a 
35l a 
■ 13 tg 


57 8g 


2b I g 

243 b 
28 >b 
19 Is 
241 8 

13 i a 

Hewlett EV.-knn‘ 
Hoihtay Inn*— ,..| 
Ho mesMke. ......... 


UiPiver ; 

Hasp Dorp Amer.! 
MotMtau Au.G*>l 
Hunk Cfami 
Hutton l&F.i— ..] 
I.U. Industrie**... 


Ingcrsol Hand.,.. 
Inland Steel ..i 
1 1) ill too — 1 

621* ; 
157a f 
43 U 
117 8 
211 * 
36 i a 
13t a 


I 6 I 4 







12 l 8 

so 7 a 






Intercom. Koerey 1 

IBM 1 256 l a 

fntl. Ftavwiw. — { *05a 
intL Harvester...; 
lad. Mini Cbem! 
lau. Muitlfqods.. 


(aU. Paper 


lob Rectifier 

Ink. Tel. It TsL.. 

lows Meet.™— 
10 International, 
Jim Waller^— 




161 * 



101 . 



s isg 















32 5g 




Johns MauvUte— 


Johnson Johnson 




K.ilnrt Corn.—.. 

23 Ib 



Kai-e> Steel 

22 1 8 

KAv. — 

Keonecott, — ..— 

Kerr MeUee. 1 

aside Waiter... 
Etmberi.i Clark 


Kraft — 

■vi tiger U>. , 

Lwl Eli hush ...... 


25i a 
46 3e 










23l B 

8fi B 

25 i B 









Liggett Croup—. 

Liny (Kri) 

Litton Indus!——. 
Lockheed Alrcr'll 
Loae Star Inds — | 
Island Ltd. 
Uxindana Land... 


Lucky Scores. I 

L’besT'ungBt'wi] 1 


Many K. B. 

Mtn- Hanover — 


Slanubon Oil— ..j 
.tLirine Mfrtlaud.i 
Marshall Field ...| 






383a ' 
40l B 






191 b 




67 B 


387 B 






Mn> Dept. More: 



UuDonneii Doui 
McGrnw Hill..— 


Merck - 

Memli Lynch— 
Mem Petroleum 


MirniMmirf lll, 

Mobil Corp. 

Morgan J. F...„ 
Mot two la 

Murphy Oil..— 


Matoo Chemical— | 
Rational Can — 








14i s 




bO7 0 

471 S 
27 t s 

234 4 
30 ia 
297 8 
267 B 

Mat. Uuullerfc — | 
Nat. Service Ind. 
Aatiouai Steel — 



Neptune I nip— — .1 

Mew Eu^i 
New Snglaud'iel 
Alsga rs Mohawk 

Niagara Share 

-V. L. Lnduau-lei . 
North Mat. Gas... 
Metro Srata k*wr 
Mrbwest Airlines 
Nth weal banL-mv 
Morton Simon ... 
U.x-iilefUa- Petrol 

Oallvy Mather .J 
Unto t£d< 






o47 3 


















82 Ifl 

il* 8 

897 a 
16 lg 












Overseas snip 

Owens Coral ng— 
Owens | moots, 


Pan. Pot. X U— 
PanA m World Air 
Rsrker Hannifin.! 

Peabody lot. ^ 

Pen.Pw.i Lt-.,..[ 

PennvJ.C— j 


Peoples Dron— 
Peoples Gas...— .. 





201 * 

k07 B 


227 8 

2 U 2 







20 1 * 








Perkin Uimet— ..: 



Phelps Dodge—.. 
»pbla Hie. 

Philip Mnerts— I 
Philips Petml'in 

Pitney Bow 
Plttstoo— , 
Ptecey Ltd ADH 

181, • 
353* ‘ 
2730 ! 
1858 ■ 

S 778 i 
363a I 

20 I 
173a ! 

18 lg 
217 a 

SO ia 

Potarohi .1 

Potomac Htoc : 

PPG i nd Dairies-, 1 
Procter Gamble. 
Pub Serve Elect.. 

Piill imui 

Pnres— .. — — . 
Quaker Oats— .. 
Ua|6d American-) 
f&frtetsa.. — — .4 

EepubUe SIseL.J 

25 3g 



737 S 
22 <8 
S it, 



asr B 
74 i B 


Kevloa — 

Keynokl» Metals 
Ueynoids K- J.- ., 
Kich'soo MarreliJ 
Uookwell Inter... 




277 B 


221 , 

317 B 





*277 0 





Dutch | 693* 

KTE„- 14 7 8 

Kuss Loys 1 11 >1 

Kyder Syatera....) 151* 
•sareway Siom...l aBi* 
Sl. JoeM menus.) 26 
SL Kepis Paper- DC 
Santa Fe Inds... 

Saui Invest— 

Saxon Inds.. — .. 
actaiiia bre win* 


Jjaxt Paper- 

Soovii Mr*; 

dcurtr' Duor Veai 

E 6 i* 








211 , 







267 S 











Sea Container*—] 

rfeajpsm ,J 

dearie (GJ5.1 1 

dears Hoebnck — 


Shell Uil 



dig node Corp 

ulraplii-ux ISt.. 

dluger ..... 

dmitb Kline. 

doll iron ... — .... 


Southern Cal. Fd 

doutberu Co. 

dtbn. NsL Hen.. 
doutbera Pavifli . 
.douthernKai I wai 



121 * 

221 * 







184 4 




25I S 




447 B 


297 8 

121 * 

221 * 





337 S 

L3l a 











S'w’l Dan abort*. 

d perry Hutch. 

d perry Karul 


duutilard Brands^ 
dtd.Oil Indiaiia.. 
dtd Ull Oblou... 
dtaud Chemical. 
sterUnx Uruji— 


dun (Jo. 

dundstrand — — 

dynte* .... 

rektnwix — — 



221 * 
221 , 
83 1 * 
381 4 




385 a 
375 b 

Tesora Petroleum 

L'esavo— ...... 


I'exaa lnssm-. 

lens Uil k Gas .| 
tatu Utilities.. 
rinje Inc— — — 
Times Mirror.— 

r lmfctin 


bumn erica. 
risoKO. ... — 
Trans Union—.— 

Tmnrwwy Int'rai 

trails Wo 

or m AJr. 
1' rave) lets — 1 

Trl IVinriininhi .J 














221 * 




87 B 
63 »a 
26 >a 

3O7 0 

187 B 


Wootwortn— — . 


Xerox — 


health Hwiio... 




UjS- 90 Day bills.: 

18 SB 









t81» 8 



.V Lilli l)i 


Atom Aluminium I 


Asbestos — 

Bankoi Mooireai 
dank Nova -cotta] 
Basic Kesouroea.. 


deli Teiepboue—j 

How Valley IndrJ 






64 lg 

12 Jb 








64l a 





Uniirr Power... 
v/amdo Mine — 
Uuiwia Cement ..| 
uamuta NWLam 
Cau impBukCom' 
Canadn ludust ... 
Can. Paelli. ...... 

tku. Pw-tti luv 
Can. du|>ci Ul... 
(.tariim, O'Keeie j 
C assiar Asbestos 

13 ‘a 
1 7 8 

a 64* 

15i b 

16i b 


367 8 



lu7 B 


tl9l a 

It lg 





Cominuo — J 

Com Bat bui -si 

Consumer tins... 
Coseks Kesouren 
Coeialn lllcli 
Dson Devtmt— — 

Uonimjo A] irma 

Dome Mines. — 
Dome Petroleum 
Dominion bridge] 


Duponu — J 

Raicon’ce MckeJ.1 

rord Motor Caa-i 1731* 

101 b 
121 * 
19 ig 


261 * 





77 B 






1 S 1 * 





Giant Yei.n-kmiej 131* 
Uuit Uil Cauda--! 2730 

Hawker did. Uan.l b 

tJoiiioger — — ! 1305b 

Home On *A’— .1 394* 
Hudson bay Mue 
Huriatm Hay — 

Hudson Uil Jt Gar 


limmi — — .] 

Imperial Mil... 
















19 ig 







43tb Century Foal 


lid - 


bUlltKt..... I 

Unilever A V 

CnbiD Uams.irp,..] 
buiuu Uartilrte....* 
union Cotntnwwl 
union Ol Caiii—j 
Untun HhcIEc 














1 #ai* 
201 * 
39 1 8 

Uniroyai. | 

United Brands— -i 

Ud Uatuorp. 

Cd. Gypsum 

US. Shoe—..—, 

UdSteoi , 

U. TecbnolOKHo— 
UV Industries—. I 
Virginia Elect. 
WarnarAJoni an./ 
Warner- Lambert ,1 
Waste- Man'ment] 

Wen*. Fare) 

W astern haoi-on 
Western K.Amei 
Western Union— 
Wwlnnhse Elect 































267 b 





West vico..— i 
Wh iri pool. 

White Con. tod. 
William Co—...., 
Winooustn Elect 













ind* ... — 

i aland Nat.uas. 
t ns’pr’y Pi p®Lmv 
Kaiser Itewurces. 

Cuirm'l Fin Corp 

U)biH«T Ctjm.*b.' 
Mc'miu'n Uioedi 
Mswey PerBusoe, 

McIntyre- .... 

Moore Cotrin 

Moran da Mines—, 
Nureen Energy— 
K tiro. Tei ecnm . ...] 
Hiudio Uli A Gat 

Uaknood Ctti'n 
Pao Du Copper M 






221 * 
lb So 

111 'I 
1U7 8 
221 * 




rtm. Can Pec’m-i 


People. Ci»ia.a..| 
v Oi - 

Pi ue — .' 

(juebe*- o in menu 
Sander Uil— .— 
Item! dhsrv— .. 
tii.> Algijui.— ... 
UoynllSk. of Can. 

Kuyai Trust I 







121 * 




1 * 






1161 , 


u -96 








284 * 


dvepb-e K'souroet 


shell Caasda.— ■ 
dbemttG. Miner 
alebetu O. G— 

dimpsotu. I 

dteet of Canada- 
dteep Utvfc lino 
resoco Caanata.. 
Ibioato DmcuEk 
LtansUtu PtpeLo 
i'ram Mount Ui i 

Union Cua ......... 

UttLdlsooe Miner 
Walker Hinuxi— 
VVesi Const Tra*. 
Weston Geo..— 


254 * 

16I B 


147 B 





327 B 


8l a 




aiT B 


* 41 * 












Y Bid. ? Asked. 3 Traded. 
| Kew stock. 

notes : Overseas prices shown below 
nrrimlj | premi um. H oi pan dividends 
are after wiChboIdinB tax. 

8 DM50 detrain, unless otherwise stated. 
# Ptas.500 denom. unless otherwise stated, 
jb Kr.lOfl denom. unless otherwise stated. 
<|> Frs.500 denom. and Bearer shares 
unless otherwise stated. 9 Yen 50 denom. 
unless otherwise stated. S Price at time 
of suspension, a Florins, b Schillings. 
c Cents. (/Dividend after pending rictus 
and/or scrip issue, e Per share. / Francs, 
n Gross, div. %. h Assumed dividend alter 
scrip and/or rights Issue, fe After local 
taxes, m % tax free. » Francs: includi n g 
Unklac dtv. v Nam. a Share split, s DW. 
and yield exclude special payment, t Indi- 
cated div. u Unofficial trading. » Minority 
holders only. vMeracr pending. • Asked, 
t Bid. {Trailed, t Seller, r Assumed. 
it Ex rights. xdEx dividend, sc Ex 
scrip issue, xa Ex alL A Interim since 

I'maiicial ' Times W^e^y' r AprQ>5 : 197g 

£ & $ firmer VrrcInS** to 

Starling and the US. dollar York. Before' the TJB. market ta^nti»rauSp) 

were generally firmer In the opened the metal had shown a Okas I 

foreign exchange market yestef- slight improvement from the SgSJWe™- 
da* The pound opened at morning fl*tng level of Si79j® “«™enxa 
SL8660-L8670 and improved to. a . . ' ■ 

high point of $L8675-L86re before 
lunch. The announcement of a fall 
in the UJC. official reserves during 
March poshed sterling down to a 
low level of $15615-1^625, hut the 
weakness wax shortilvd, amce the 
eligible liabilities in the latest 
hanking figures were weRreceived. 

Tbe pound rose quite sharply in 
late trading, after publication of 
the banking figures, to touch 
9L8715-LS25, before dosing at 
$L8690-lff7Q0, a rise of 15 paints 
on the day. 

Sterling's trade-weighted index, 
as calculated by the Hank of 
England, rose -to 62 from 6LS, 
after standing at 6L8 at noon and 
in early trading. - *. 

The dollar rose to a best level 
of DM2.6230 against the D-mark 
during the afternoon, and dosed 
at DM2.0200, compared . with 

DM2.0080 previously. It touched .^=_ IL _ . r -,, 

a high pohzt of SwJrsXSTSO in CURRENCY RATES 

terms of the Swiss franc, before ; — ; — 

closing at SwJFrsJL8690, compared ! / 
with SwJPrsJ-8505 on Monday. 

The highest lerel touched by the “ ■ . . 

U^. - currency against . the 

Japanese yen was Y219R0,. but it — 

finished at Y2 18.70, compared with r ” 

Y2I&60 previously. Austria *£— 







SI 80 .50 


■zaa-iai 1 s 

u l8aC“ 


(2M >1*10010) 


337-59 1 




3541* -5 6? ~ 
132921* -2961* 





The dollar’s index, on Bank, of gg 1 s$“ 
England figures, rose to 88*5 from 

8 R 2 , while its trade-weighted Dov* guilder 
depreciation, according to Morgan: French franc. 
Guaranty of New York, narrowed l *»itan lire.™ 
to 627 per cent from 6.50 per 
cent. iJmIq peseta.. 

Gold fell $23 to $1793-180, partly Swedish krone 
reflecting' nervous selling in New franc... 




April 3 

April 3 

1/11 53S 





2.72JJ48 - 



















Km rork— 
Amsterdam , 

Us boa. 
MUon 1 










111 * 




31 * 




Day's ' 


66.50-68 JO 

2180- 27.25 
.5-403 SO 












27 JE . 



t Ratos given ore tor eumwt rh iw 
Financial franc 69^203946. ' r - . 



| April 4 |Frankturt|Aew Xork 

Paris: .. 




Frankfurt '• — 

New Ten* *: 4393-86 

Pkris ‘ I6&60-7.1 

Brusseta ! 1594^9 

London- ! 3.77p-78i 

AjD&t’dam— 10697-7 JUS 
Zurich 1 92939-779 

AO 1909205 

4L3247 ' 
L8690 87 

’ 449820 








I91n7 934& 


L 8640- 60 













[33^&54.«j Loxemh'i. 
2M.1686 MaJayai*.. 

, . K6 wa, 


1 123-155 

Kuwait 0307-AS17 


16J8-17-04 N. &»tandi 1. a IBS- 1 J233U»p5n. 

5. 4 WO Saudi 

'-632-63Jaw I « 


Cj 3. 8 in Toronto US. 8=U3S8-70 Canadian cents 
Gansdian $ In New YmkstStM-Qdcenta. U£. 3 in Milan 850.10-U0 
Sterling In Mitan I6883MB98.60. * Kates foe April 3. 

t>. Afrtok..!: 
UJS. mm.. 
Canada ^ 


UJS. cent 


Nethwtnd r ■■ 

Wtnuu •! 
— p- 




Rate xlven for Arsendna Is 0 m 

April 4 




D9. Dollar 





W. German 


tShort term 

7 ttava notice 


Three nuiuthK. 
Six months. ... 
One year. 






'7-8 ‘ 
' 81* -®7 b 


6Tb~7X H 





4i0-Si B 
47a-6l B 
47 b-518 , 



l-l la 

na . 


I One month 

Montreal J 
A mac damj 
' Brussels-. 


[O.loSin a dial 1 
1 C. MMU 

15-05 c. pm ■ 

61* -81* oredn 

Euro-Freocii deposit rates: two-day 8J-8J per amt.; seven-day Si -81 per cent.: Listen., 
one-month 91-9 per cent.; three-month 82-9 per "cent-; stx>month 94ft per cent.: Madrid 

one-year M-W per cent. • • " *' * 'I, " Milan 1 

Long-term BorodoUar tteposite; two years Bfi6-83ig per ceoL; three years 82-81 per n«in 

cem.; four years 8C-86 per cent.; five years 87ifi-89u per cent Paris 

The following nominal rates were Quoted for London dollar certificates or deposit; st'ckhoim 

one-month 7.10-73 per cent; three-month T^ft-7-70 per cent.; six-month 730-7.81 per Vienna 

cent.; one-year 74V-7JW per cent Zorich 

• Rates are nominal cifllng rales. ' 

Short-term rales are can for sterling. UA dollars and Canadian dollars, two Six-month forward dollar' Lftk 
days* notice for guilders and Swiss Grants. 13-month 0.90-(L80c pm. 


e. dta 
10-90 c. dl* 
7-14 lire dls 
.71* -91* oradla 
«*-Hb c.dia 

13,-33* ore dim 

par -10 grp dia 
2 i*-li 0 c. pm 


131 .. 



. . 

®-7 ran 
-WiOj * 

I in 

hi’ In 




April 4 









+ 2 





+ L4 









+ 1.3 


















Daimler Bon? 


„ lHaa ., 




+ 3 







PW^rTrT*W l W|| 









197.5|+ 1.6 



U+paa Lioyrl J 







130.7 +0.7 


. 4 





138.S' + 0.5 




+ 2 



215.0. + 1.0 



I.Y'J TV rTjJtfflBlMlI 











+ 3 



Loweobrao 100.^. 





112 | 

+ 1 





+ 2.0 



169.6 +1.3 






Monobener Bock. 





Li- 1 - U-WPI 


+ 2-0 











■ lemonii 


+ 2.6 



Mini Aucker......... 


+ 1 



tbyw+n A.G 

129^1 + 1.7 






v BBA 







— 3 



214.51 + 0.2 




April 4 



Alfflin BnktFi.lOCi 




BV (FI. IQ) 1 

Amrobank CP1JB0), 


Uoca West ' tn(F.10[ 

burta nuTetterodei 

El sevier i FI JiO).... 

BnnlaN.V. Bearer 


tl 1st BrocadeatPlO 

Heineken lFi-20).. 
Hoojfo vena (FI JSF! 
Hunter D.(FI.10CV 
KJ1M. /Fi.lOO)... 
lut Mullerilri»....l 
Naatden (Fi.lO)...| 

NatJNeti Lns.(Fi.Ju 1 

Awl CredUk(Flj!G[ 

Aed MblBkcFI-bO, 

o.w (Ki.aji 

Von Ummeren... 

Fhkboed iFiJ«.. 

Fhillp* (Fl JU)_„ 


Borenio (Pi 

KoyaiDvjtciifFi JU 

dia venbu t-{.^.. M .. 

Aevtn Grp lF‘Jd3)| 


Unilever (Fi^O)... 


WeaUan'dn. Uui 





+ or 


— 1 
+ I.X 





136.91 + 0.3 





+ 1 
!— 1 
+ 3 

— 1.1 



2X.H + 0.1 

127 — 0.2 

39-0| , 


166 Ul 

151 1+0.5 


70.6) — 0.9 

t {+0.5 
1 . 8+1 
a —u.5 






+ 0J8 

I — 0.2 
+ 1 
+ 1.5 

+ 0.3 waj 

+ 02 

+ 0.9 






A2341 6.8 


10-28 8.7 


464 4.3 




















April 4 

1 Price 

+ or | Dlv.[YI 1 

Ar* It-ndjtmkeQ I 

oiirm'au' W. •in..' 

Danuhe IMok | 

Haul Anted I**...' 

1 uuLQabaiiiieii— .) 

Fur. byiuterter 

cur. Dyiuferier ... 
Fur. tapir...-.,.... 

Gtauifelsftanfc ..... 


Nerd K*bel 



I'rovlantfvnh. ' 

boph. Uoreadwn. 


14Sls,' + U 


127 l + i* 
215UM +li 2 
1M6S*'— 1 
338 ; + s 
83 s , ,—2 







+ '4 
+ >4 
+ 1 



12 | 9.4 
12 l 5.6 






а. o 

б. 5 


April 4 

1 Fm* | + or 

lJi ctlibLU«tai( 

t'wlmooaerf .......... 

select h. ...... ....... 


Steyr Dalnuei-... 

Veit Mafinesli—j 














14 | Si 



‘ | April 4 
















Ohinon- — 


— >■“ 



l>a| Nippon Prin 


+ 2 



Fuji Photo 


+ 7 








Honda 3iahxa._. 


+ 1 



Hr»«Food — _ 






+ 4 



+ 10 




+ 13 




- 1 






+ 1 





+ 1 




+ 11C 



lUtaiuhlta lad.. 



Mltsabishl Bank. 



■ g- 

MUsubiaiti Beavy 




Mltiiutllahl Cora- 




■ fy 


+ 3 





+ 2 



Nippon Denau^... 



■ iW- 




N ' hu Motors..^. 










tenyo Klectric — 





Sekmil Pretab ... 






+ 10 







iaufao Marine. 







+ 13 


l'DK_ , 


+ 80 




1'okio Marine. 


+ 7 



lotioBlect Po«'t 


+ 10 



lo*yo aanvo 


+ 12 







| Toyota MnLor.„... 


+ 5 



Source Nlkko Securities. Tokyo 



April 4 


+ or 










Hq. lirx. Lamb... 










UJJ.H. L'-emcnt 


+ 34 




— Z 




+ 40 





+ 20 





+ 20 



- ii.H. Inno-Bm 


+ 40 



GevaertL. — ... 




Hoboken ....... 










la lloysJe Balce- 








tea Gun ttanqiia. 





ote Ben Belffique 




7 JO 

aotinu .1 





tei ray 


A 2*0 


Cractioo bleu, 






+ 6 

li | jT».' "iM IH (lIP 













April 4 










BBC 'A' 












+ 5 


l T II 

l)a Ueg 






+ 10 


E 1 11 



Fincher iGeaztrri- 




Hoftmau FtCart>- 





Do. (bmaii) 




InUffood H 


+ 100 



J el mod fFr.lGU)_. 





Nestle (FV. 100) „ 



Do. (tef. 










Pirelli 61 P (K.luO) 


— 1 



3uh1ok (Fr.SSO) 





Da PnrvCerU. 




%-lnnitiei-CU r iOt' 
suiter CU (FJEXi) 





Snistair iFjbO). . 





Bnisa Bank (F. IOC 









Union Bank 












+ OTI 

. April 4 




AN 1C 













+ 10 











12 6 





+ 150 





+ 2.7G 


Uliveut Priv 


+ 10 


Pirelli A Co. 





Pirei/t 3pa.. 





data Yiacoaa 





Apr. 4. 

ACM 1 L (5* cent) 

Arrow Australia — 

Altted Mnt-Trrin. lndtm SI 

Ampot ExpltmiMoo — 

Ampul PotrDdsotn 

Aaaoc. Min eral*—.—— 

Aunt. $ 


Aaroc-Pplp Paper fl— . 
Amoc-Ccb. Irelostriea. — 

Aunt. Foamtation Invest— , 


Carlton United Brewery— 

C&H {811 — 

Cora. Goktflekt Aua ... 

Container (91) — — . 
CoozmcBlotinto— ..u — 
Contain Australia. 



AZ. Indastrles- 

Uen. Property Trnav._ 



LU.(. Anatratta. 

inter- Copper. — 

JeanlngB Indoatriea.- 







13.10 - 
11 J 2 





to .25 








Apr. 4 

-Banco do-Bnulbiq 

-J+LKX" lieu • .» 

ihHieo Mmeim OF 
Coja* Amer.OF 
Vetrobras PP.„. 



Ump PE 

Vale Wn Dure PP 














VoL Cr. gJm . Shares MJi 
Source: Bio da Janeiro 







Jane* (David). 
Leonard Oil 

Meiala Bate 

Metals Exploration — 

HIM BokUnea— 

Myer Emporium..-.. 

new» — — 

iNU-tjotaa International 

North Broken H'Htegs (hOH 


Ull -search 

Utter Exploration-... ....... 

FKweer Oonr+rte. 

uadrict A Col man 1 

A. C. 5kdgh 

tea Uliana Min lag. 
tooth (31) 

Western Mining (SOcenia) 

Wool worths.-. — 

tO. 16 
tl .88 
tl .05 
tO. 18 
10 . 66 . 
- 10.18 








1+8 JW 








April « 


dorxeprard , ; 

Credittenk . 

.vorak B.vdrokrJL 
sicrebrahd 1 




66.0 1 

277 +2 




April 4 Kamf 

Anglo American Corpn. — 4J3 
Charter CwsoUdated . — 195. 
East Drtefmueia - U-S 

Klsbnrz — — - 195 

Harmony - - a . M»7 

Kinross . — — — — — . 598: 

Kloof - 17AS- 

Rustenburg Pladjunn I3t 

SL Helena • 

Sooth VaaX >30 

Goto Pie kte SA 1U8 

Union Corpora tfew . — - 498; 

De Beers Deterred OS 

BiyvooralBteht 3-®- 

East Hand Pty. — S.47 

Free State QeduU S38 . 

President Brand ; 

Presktem suyn 

SUUonteln ‘ — 390 

WeflKffli - 

West Driefontein m» 

Western Hrtdlnge 1®.* 

Western Deep — ti.® 



Anglo-Amer. Industrial — 099 

Barlow Rand — *■* 

CWA Icvestxaenta ti-g 

Carrie Finance — ■ 

De Beery Industrial ......... 

Edgars CansoUdated inv. 11.7» 

Edgars Stores T2M0 

Ever Ready SA UJ* 

Federate VoIktiietesalnB* • 
Crearennais Stores 1^, 

Guardian Assurance (SA) 1J»- 

Hulens ; 


McCarthy Umbras 


OK Bazaars — 

Premier M i lling 
Pretoria Cernern — --- - 
Protea Holdings — 

nmea —7 — aim 1 - 

Band Mines Properties — U-* -• 

Remtuandr Group — 3,a * 
Retro ; 

Sage Holdings 


C. G.” Smith Sogar 

Sorec — 

SA Breweries 


Tiger Oats and Nat. *-15 ^ 

•Untaec «tvc ft ' 

Securities Rand 

(Discount of SxJ% 



AnrB 4 


Banco Aflantko U9M> 

aneo Contra! ■ 



Banco General ----- 

Banco Granada fUM) 

ico ind. (tat, n.wn lg 
B. IntL Medherraneo... » 

B “ co SSSS^'M* » 

Banco. UrquUo n9*» “ 

Banco Vizc aya ™ 

Banco Zaregoiaao »- 

Bankunlan .-■— 28 


»miw . AodalaeU 

Babcock Wilcox — 



E- L Anmmeaaa 

oneia — J* 35 

Espsools ■- *Sa 

EXpL Wo Unto — ST 

Pecsa C9W — " a.TS 

Fenora (J.BM) rrT — a 
GaL Prect adM- — -fj 
□xnoo vela*®** <480) - y fon 

Rkhob - ui" 1 - 7 b 

Tberdnero . - — 15 

PctroUber . — uoSO 

Petrofcos - 0+ , 

Santo Panalera ,-w— • q ■ 
Sntacc * 



Tomer ttnsueto 


Date Etoe. 

■eSflfr- a 


Financial Times Wednesday April 5 1978 




■Jai& \ 

ls *4 i 


-"59 " £ 

J <*A 


v " -s£'K?J 
^ V^. | 

-6' ‘‘ 5- 



BM weather 
cuts Indian 
tea crops 

8/ Our Own Correspondent 

. C ALCUTTA, Aprfi 4. . 
"WEATHER HAS bees tinfav- 

SJJ 01 ® J* !f a in -North 

*?** India from the beginning 
Bus year resulting in loks of 
production according to Mr. N. L. 

tk^nuT s ? nlQr . vicepresideiit of 
the Tea Association -of India. 

-BMP®* *** u of drought 
hJt S e '?°p to DarjeeUng, 
Dooars. Teral and Cochar di 
3® badly and in the last week 
tLS?”* Dar 3 eelm fc Dooars and 
“WJ Y we by * severe 
Hailstorm doing further damage. 

Mr. Tantta says that first flush 
tte Prtwe crops of 
these districts and are in good 
demand abroad. At least 90 ner 

exported. ^ Z>ai ^ eelin S crop is 

■ ^hf . adverse , crop reports 
together with a holdup of Ilm. 
Kilos m a local warehouse where 
a go-slow by workers has been 
going on. for several weeks have 
forced domestic tea prices 
higher. The M bullishness ** is 
reflected ■ in the firming un of 
prices at all auctions. . 



__ f 


' • !s"'s ’"‘t 

u' -i 2. 
: £ 

-• - -J if- 

- , i 


r •„ " l 


L.:5 -L 

2 :1 -1“ 

• y 

-12 -3 
is: -3 
..53 ^ 


- V 

Russians gain 
New Zealand 
fishing rights 

the second nation to gain fishing 
rights in New Zealand’s 200-mJJe 
economic zone "with signing here 
of a formal agreement by Mr- 
Brian Talboys, Foreign Affairs 
Minister, and Mr. Alexander 
Ishkov. Soviet Fisheries Minister, 
reports AP-Dow Jones. 

The Russians recognised New 
Zealand's jurisdiction over the 
zone and Mr.. Talboys said he 
hoped a quota would be fixed 
within the next few weeks on 
how much fish might legally be 

Mr. Ishkov said at a signing 
ceremony he hoped the agree- 
ment would lead to wider 
co-operation in many fields.: 

In Ottawa, meanwhile, a new 
fisheries agreement has been 
reached between Canada'- and 
Japan. • ' . 

The agreement which must 
still receive formal Government 
approval in Ottawa and Tokyo, 
sets, out the conditions for. con- 
tinued Japanese fishing within 
Canada’s new 200-mile zone. 

Negotiations are to resume in 
Mar with -the EEC. the last 
major-group- of countries stiH 
la sign a fishing .treaty, with 
Canada since' Ottawa declared the 
200-tnile zone early last year. ■ 

New hopes of extension 
to U.K. butter subsidy 


Agriculture Commissioner, 
announced during the annual 
farm price review talks here 
today that he will present new 
proposals for some form of UJu 
butter subtidy scheme. These are 
expected before the next farm 
council meeting on April 24. 

In - the past, Mr. Gundelach 
has firmly opposed suggestions 
that the UJG subsidy be ex- 
tended beyond toe end of this 
year, or that a new British sub* 
sidy - be introduced. - 
But Mr. John SiUrin, toe UJL 
Minister, said after toe talks that 
he believed Mr. Gundelach might 
be considering an extension after 
all, and that a Community-wide 
subsidy to counter the trend of 
falling consumption was a possi- 

This falling trend clearly wor- 
ries the bigger butter exporters 
in the EEC. Ireland and Den- 
mark said today they want the 
British subsidy to continue. Mr. 
Silkin said, and- Sources from 
several national delegations sug- 
gested to-day that Germany and 
toe Netherlands are no longer 
averse to the Idea. ■ r ■ 

Last year EEC farm ministers 
agreed that toe subsidy, intro- 

duced in April, 3877, should be 
phased out by. the end of this 
year. But Mr. Silkin claims that 
this would lead to a 40 per cent 
rise in U.K. retail prices, which 
in turn would cause a 60.000 
tonne drop in UJv. consumption 
over 12 months. 

Earlier, at the talks, the 
Ministers referred to their 
Foreign Ministers’ compromise 
proposals on toe long-standing 
dispute over imports of Cypriot 
new potatoes which, if accepted, 
would clear the way for an EEC- 
Cyprua trade agreement 

The agreement, which has 
been held up on this issue for 
months, provides for substantial 
imports of sherry, citrus fruils 
and new potatoes to the Com- 
munity (mainly Britain). 

Until now it has been held 
up by Italy, which fears com- 
petition from Cyprus for its own 
new potato exports to West 
Germany. To-day's compromise 
stipulates that the Cypriot 
potatoes should be shipped 
directly to the U.K. only. 

Solution of this problem does 
not. however, clear the way for 
negotiations of a common potato 
regime which is still being 


blocked by Italy. 

Mr. Poul Dalsager. president 
for toe council, to-day ruled out 
the possibility of this being 
settled in the Farm Price Review, 
or indeed before July. 

Italy is refusing to negotiate 
unless it receives direct fixed 
subsidies on an acreage basis, 
such as its citrus producers 
receive for lemons. 

Most other members flatly 
reject this, but are prepared to 
consider a proposal put forward 
to-day for deficiency payments, 
which would make up toe 
difference between the market 
price and a guaranteed minimum 

British officials indicated that 
In the absence of any EEC potato 
regime. Britain intends to con- 
tinue with its ban on potato 
imports, now the subject of 
Commission inquiries, despite 
strong hints that Mr. Gundelach 
is under mounting pressure from 
Germany to refer the matter to 
the European Court of Justice. 

Should the ban be found 
illegal this would probably be 
loo lale lo affect this year’s crop. 
But it could seriously disrupt 
British price support arrange- 
ments for toe 1978-79 crop. 

Further boost for zinc prices 


ZINC PRICES advanced strongly 
a gyj w on toe London Medal Ex- 
change yesterday following re- 
ports of further cutbacks in 
European production. The cash 
price closed £9.5 higher at £302 
a tonne, resisting the general 
downtrend in other metal mar- 
kets triggered off by toe fall in 

It was confirmed yesterday that 
official notice of a strike to start 
next Monday had been served at 
the Hoboken Overpelt tine plant, 
which has an annual capacity of 
145.000 tonnes. 

Workers at tfc* , Hohoken 
copper, lead and precious metals 

plants* are already on strike in 
support of a wage claim. 

At the same time strike action 
has begun at too Vielle Mon- 
tagues' zinc dust producing plant 
at Flone. and notice of strike 
action at its zinc plant is also 
understood to have been served 
for next Monday. 

With the Prayon smelter 
already on strike, this means that 
next week there could be a com- 
plete shutdown of Belgian zinc 

Last year Belgian slab zinc 
output was nearly 250,000 tonnes 
— toe second biggest contributor 
to West European production of 

Tin below pact ‘ceiling’ 

TIN PRICES fell below toe 
International Tin Agreement 
ownin g ” of SMLSOO a picul for 
toe first time since January, 1977, 
ob the Penang” 'market on Mon- 
day ni ght. 'A decline of $M13 
cut the Straits tin price to 
5ML499 a Picul. . 

The - breakthrough,- back -into 
tbe-Tin Agreement's price range, 
had tittle impact, however/ on toe 
London market yesterday* The 

standard grade cash tin price 
closed £55 down at £5,690 a 

But this was basically due to 
toe general downtrend in metal 
prices following the overnight 
trend in New York when gold 
values tumbled on an announce- 
ment that Switzerland planned 
to end gold backing for its bank- 

- Copper, lead and silver values 
also lost ground. 

around 1.5m. tonnes. 

A. M. and S. Europe also con- 
firmed it has gone ahead with 
plans to close its zinc plant at 
Avonmouth for about nine weeks 
for major repairs and overhaul 

It said the timing of the 
closure, which is being extended 
beyond normal duration, is appro- 
priate in view of toe depressed 
level of prices and will help 
reduce stocks to moer normal 

Preussag, the big West Ger- 
man producer, announced yes- 
terday it was cutting output to 

12.000 tonnes a month, which is 
calculated to be about 68 per 
cent of its capacity of its two 
plants estimated at around 

210.000 tonnes a year. 

These further cuts, coming on 
top of Asarco’s decision in the 
US. to reduce output at its 
Corpus Christi plant by 50 per 
cent, stimulated further buying 
interest but mainly from specu- 
lators, encouraged by rumours 
that toe European producer 
price might be raised from $550 
to $600 a tonne. 

Trade sources were more 
dubious, although one .dealer 
commented: ** They might he 
mad enough to try, giveq past 

Sugar hit 
by Soviet 

8jr Our Commodities Staff 

WORLD SUGAR prices fell 
yesterday in response to 
reports that Russia had resold 
substantial amounts of white 
sugar bought earlier in the 
season to traditional outlets. 

In the morning the London 
daily raw sugar price was 
marked down £2 to £100 a 
tonne and on the futures 
market August delivery price 
dosed £3£75 lower at £106.475 
A tonne. 

Russia has staled down Its 
reexport trade in white sugar 
sharply over the past few years 
and claims that its purchases 
on the world market earlier 
this year were destined for re- 
export were generally dis- 
regarded at the time. 

Yesterday’s report, from 
Toss, has prompted a re- 
appraisal of the country's own 
consumption trend, hence the 
** bearish ” effect on the 

In fact Russia has always 
maintained a substantial re- 
export trade, though much 
lower than in the late 1960s 
when the trade sometimes 
exceeded 1m. tonnes. In recent 
years re-exports of white sugar 
have averaged 66-70,000 tonnes 
but toe Tass report says the 
total will be abont 100,000 
tonnes this year. 

The market was also 
depressed yesterday by news 
that Pern was offering 33,000 
tonnes of raws for export. 

Meanwhile the International 
Association of Sugar 
Statisticians has estimated 
1377-78 West European 
member countries sugar pro- 
duction at 13.895,000 tonnes, 
compared with 12,124,000 
tonnes in 1976-77. 

Cocoa decline 

By Our Commodities Staff 
THE DECLINE in London cocoa 
futures values continued yester- 
day with the July quotation end- 
ing the day £56 down at £1,891 a 

Trading was this in the morn- 
ing but nearby prices quickly 
established a £40 permissible 
limi t decline. Most traders could 
find no reason for the fall but 
some said it might be due to the 
circulation of a few Ghana 
current crop shipment declara- 

Bearish market sentiment 
based on downward chart 
indications following the break- 
ing of established support levels 
seemed a more likely explana- 
tion, however. 


Currency changes 
the main worry 

SHORT-TERM buying, and toe 
belief that there will be little 
change in world price levels, are 
the two tenets on which tJ-K. 
softwood importers are basing 
their operations this year. 

With plenty of wood available 
in all our major supplying ‘conn- 
tries, importers* minds can rest 
easy on availability. What is 
giving cause for anxiety are 
currency movements and the 
chance interest rates may 
start to rise again. 

While there is evidence that 
the Swedish krona is fitil over- 
valued at present levels it has 
performed very much better than 
sterling in recent weeks. So 
although world softwood prices 
may remain steady in the cur- 
rencies of exporting countries, if 
the pound weakens then wood 
must become more expensive on 
toe U.K. domestic market 

The Soviet Union is one of toe 
major supplying countries from 
which the importers cannot buy 
in the short term. Russia’s first 
schedule of softwood for this 
year’s shipment was circulated 
in toe first week of February for 
delivery from around June on- 
wards at prices which were about 
20 per cent down on their past 
offer, which appeared in April 

The nominal quantity was 
450,000 cubic metres, but toe 
response from importers was 
good: it is reckoned that about 
a million cubic metres have so 
far been sold and toe Russian 
agents are still selling against 
the schedule. The top Russian 
official on timber in Britain has 
recently been in Moscow where 
he was no doubt consulting on 
future moves. 

But it is thought that 
Exporties, the Soviet sales 
organisation, may well go on 
selling on the first schedule 
terms for several weeks yet and 
then perhaps come out with 


different specifications while 
maintaining the price levels. 
Their target is thought to be 
sales of abont 1.4m. cum. this 

The UJK. market is used to 
having the early months of each 
year dominated by toe Russian 
schedules. However, Ibis year 
Exportles, and its U.K. agents, 
should be feeling particularly 
gratified — to have sold a million 
cubic metres worth about £75 m. 
in under two months on a slug- 
gish market is no mean feat. 

It reflects the Russian's willing- 
ness to listen to the importers' 
request for a currency clause 
which would protect them from 
violent fluctuations and the 
ingenuity of- the UJC agents. 
working with Exportles, in devis- 
ing It 


The importers’ fear was that 
-weakness in toe Scandinavian 
currencies would pull prices 
down on those markets and 
leave them with, a surfeit of 
expensive Soviet wood. The 
currency clause links toe Russian 
prices with toe Swedish krona 
at a parity of Kr.9 to the pound. 

On each side are five bands 
and if the krona moves through 
them the price will alter by an 
agreed percentage. No one can 
say for certain where the krona 
will be when shipment starts in 
mid-summer, but at present it 
has hardened to 8.60. If this 
index is held then under toe 
danse prices would rise by 5 
per cent 

Sales of Russian softwood have 
been made to a broad spectrum 
of importers with the smaller 
and medium-sized companies 
well involved, which always 
makes for a healthier market 
But one of the customary major 
buyers has so far stood aside. 

On the reselling side, toe first 
few months of toe year were 

expected to be quiet, and so they 
have been with the construction 
industry hamstrung by toe 
terrible weather. Ahead of toe 
official figures, toe National 
House Building Council has 
estimated the February housing 
starts in toe private sector at 
12 , 000 . 

This is a very high figure for 
February — back to the level of 
the boom years and bears out 
the trade's forecast of better 
timber sales in the second half 
oF this year when houses start 
Teaching the timber consuming 
stage of construction. 

Trade statistics for 1977 show 
apparent consumption (move- 
ment out of importers' hands') at 
6.37m. cu. m. — 13 per cent down 
on 1976 and the lowest annual 
figure for toe past 25 years. The 
import figure was 6.43m. cu. in. 
and, despite the fall in prices 
over the past five months of the 
year, toe cost was a record £523rn. 

Four countries — Sweden, 
Canada, Russia and Finland — 
accounted for 82 per cent of 
our supplies and their individual 
share ranged from Sweden’s 
23 per cent to Finland's 17 per 

One of the few countries to 
increase its sales was Portugal, 
which took fifth place. She 
supplies pallet and box making 
timber and this is an indication 
that our British grown softwood 
which also aims largely at these 
lower quality markets will have 
competition as its availability 

The stock at the end of the 
year stood at just over 2m. cu. m. 
— about normal, but it could be 
argued on toe high side in rela- 
tion to the sluggish consumption. 

Forecasts for 1978 are for 
apparent consumption at toe 
unexciting figure of 65m. cu. m. 
and imports about the same. At 
the end of the first quarter they 
look abont right 

U.S. commodity funds threatened 

of President Carter's income tax 
revision package threatens toe 
existence of U.S. commodity in- 
vestment funds, it was claimed 
here, reports Reuter. 

Mr. Frank Battle— represent- 
ing several UB. commodity bank- 
ing companies — told the House 
Ways and Means Committee that 
approval of Carter’s proposals to 
tax limited partnerships of more 
than 15 partners as corporations 

would wipe out toe commodity 

He said toe rapidly growing 
funds — made up of numerous 
partners— were created in the 
early 1970s to attract investors 
to commodity markets. 

At present in the U£. limited 
partnerships as such are not 
taxed, but toe -profits and losses 
are passed on to the partners for 
tax purposes. A corporation, how- 
ever. is taxed, and the profits to 

shareholders are also taxed. 

The Carter proposal of a new 
15-partner rule is aimed at tax 
■“ shelters.” But Mr. Battle 
argued before toe tax panel that 
commodity funds were not 
“ sheltering ” organisations. 

“Commodity funds offer very 
significant advantages to 
investors and channel speculative 
capital into too commodity 
futures markets which are vital 
to the U.S. economy,” he claimed, 


BASE METALS ~ “ " “ ” “ “ ” “ “ 

between X5.TM awf £5,K8. It was holding UAk U M, 

• vmwiariMhr - stpadr s wimw? £5.73fl ofl Ulree months £714.3) la, Mj. A neraoQA. 

. . 3355n o»Sr Mm » »«» ^ w. i«j, u* 

COPPER— Easier on the London Metal cwwsL a relapse and a close on the . 1*4, 13. Xert: Tbrco months 1312. 10, 
Exchange wiib the market unsettled Kerb EJlB. Twnorer 983 uxines. 10 *■ *■ 

initially by the overnight performance of — ; — -j— Zinc— strower, 

New York. Trade selling helped 10 
depress forward metal from £707 to £BB9 - rm 
before influential baying caused a itfly • , _ 

to 1798. In tba afternoon the price drifted Ultra Brada « ■ *- 

r was lower Gnfiw. .J57: 

, P-m- . 
Unofficial 1 — 

off from mo, when Conax was lower Oafli-.-.- 5720-5 I— TTO 
than ejected, and dosed on the Xerf* 3 months. 5780-BO {-90 
at £706. Turnover 19,291 tonnes. Sectlrai'4. “•«** 





+ OC 

pan, ■ 


'li..;: Wirabara 



■ B ■ 










e A NN =SSL T R 5 


— - 



680.1 , 

' 3 numthB~ 


69S-J . 


• Smi’m'nk 



• • -- 


- - - UJ-Jint, 


6 * 

3785 1—110 

6720-9 {-I 1 ®! 5685-95-65 
a months . B735-dO I 0715-20,-60 
Setttem't- 6726 1—110 
Strait, B- »1499]-tt 

Xow TOTkl_ _- ZJ-~. _ - 

Morning: Standard, cash 15,758. three 
months a, 730. 10, 30. 80. 33, 40. Kerb: 
Standard, three months 15,735. 40, 45. 59. 
Afternoon; Standard, three months £3,740, 
SO, 39, ». 10, 16. 28. Kerb: Standard, 



against the seneml 

trend, as meculative buying on news of 
production cutbacks In Germany and 
smelter strikes In Belgium poshed the 
forward price higher. After Initially 
ft»lHny Rom S9&E28S to £2984297. it 
advanced to £310 on the morning Kerb. 
But It was not possible to maintain litis 
level as proflz-taklna clipped gains, lead- 
ins to a close on the late Kerb of £385. 
Turnover 9,330 tonnes. 

(177.871; nobastas 150.00 1151.00 >. DaOr dwindled despite the firm undertone In Jaffa: S h a room J 3L75405; Egyptian: 
average 118.25 1 16133). prices. Users were not snxians to antld- Valencia Liles 2.88; Moroccan; 2.70-3.08. 

ARABICAS-Uesnalned steady In mcer- Lanons^Ualian: 180030s S.1MJ0: 

lain conditions Drexei Burnham Lambert qu anti ties or Tunusn varieties. 
rtmoriA Volume was fair aod at a ouiei gQy^EAN MEAL 


clooo values wore £L38 to £3.75 down oo 
tbo day. 

Prices Un order buyer. scBcr. change, 
business): April 28160-303.00 -3-38. 204-00- 
203.00: June 1T3JIIHI7449, -17.75. 178 J9- 
174.00: Aug. 159.5WB0.75, -3.83. l«L23: 




+ _«■ 



+ or 

0«ah — 


301- J 







307- .5 









139.00. —3.75, 13858-139 JS; 
KK.00, -350. na: April 
—2.50, nlL Sates: 43 C6) 

Fob. 132.00- 


Yesterday pi- or 
ciom r_ 






October ..... 
December ... 


April ..... 


119.60- 21 J3 —9.1 
1Z0.50-21.0 —0.5 

117.60- 19.0 +0.76 
114.06-16.0 +0.60 
114.SO-16J +(L9fl 
115 JO-1 AO +0 JO 

121.60- 18 J6 
121 J0-20 Jfl 
114J0- 14.10 

Prieas per tonne 

Cyprus: 2.4M.OO; Spams: 2.B5SJML stated. 

Grapefruit— Cyprus: 15 fcDos 2.50-2.60: 

20 kilos 3.0M.40; Jaffa: 20 Wlos 3.0M.75. 

Apples— French: Golden Dell dans 20- lb 
84S 2.40-2.70. 72s &.1M.00; 4Mb 5.40JJ.OD. 

Granny Smith, iambi e pack, per pound 

0.14. Golden D eh do ns. Jumble pack, per 

pound 0.U-0J4; Italian: Boms Beauty. w , 
ner pound 0.14. Golden DeUcions 0-11-0.14; JLetaJB 
U.S.: Bed Delicious 7.60-fe_20, Macintosh Aluminium.... 
7-56-7.80: S. African: Dunn's 5.50-6.30. 

Jonathan 6J0-7 *0. Storking DeUckms 7J8- Cgpjwoah W. 

7.50; Danish: Spartans per pound 0.10; o months do: do. 
Chilean: Granny Smith 7.29-7.68. Pears— Caah Cathode. 

nniass otherwise 


b Cents per 

t On . 

tSM ner picul. 


_ _ The market was inflMDced mainly by ^05,^1 

Amalgamated Metal Trading reported copper and sine. as. forward metal feU MarDfalK . rath a 97. £S 
that in the morning cash wlrebars traded from Q144318 to £330-1313 before advano- « j 4.5, j 

at £BM. three months £794, 3, 2, UJ, lag to £314-01# and faffing off to dMB 5 * a. 9? 10. 0. 

2.5. 3, 35, 4, 4.5. Cathodes, lhr« months on the Kerb at £38.5. Turnover a - 575 SSl £305, throe months S3U 

VmAi Ilf I MhnTff ftinift UTMIIfAl lilD. V firm nil a aw » «• 

wheat opened unchanged, and with good 

beds* ba wn g, or 41 pg/" fy w&n mm 

before massive proflt-takiag forced values 
steadily lower despite strong shipper ^ 

buying. It closed easier 10 paints tower. 31 nK lsame) : 
Old crop barley was firm throughout the 


0.6 -4-0 
B705.6 —3.751 
£660.5 —35 

8. African: Williams Bon Chretien 8.80- 3 month* da da £695.25 — 3.5 

6.70. Beane Hardy 350-828: Italian: Gold Trery OH- 8178.6261—2.75) 

P — anas sane trays W140-lb 1.60-1.70: Lead C n« h — — 

Dutch: Conference per pound 0.14: 3 mimtha 

Victorian: William s Bon Chretien 7.S0: Nickel — 

April 4 







Kerb: Three 

LONDON DAILY PRtCE for raw sugar Chilean: Ptckham's 7.00: Argentine: Pack- FToe Marked fcfr}.. 
noo <E1B2» a tonne ctf for AprO-May ham's Triumph 7 JO. Grapes— 5. African: 
shipment. While sugar dally price was Waltham Crass 5.7D-S.H). Barilnka 5.48- 

~ led at £106 i same). 5.50. Salba 5 J 0-3.20. Plums— S. African: Phttnnm trov ozJ£U7.50l 

The market opened slightly below over- Golden Kinz/Sonsold per pound 0L454L4S. Marbnr , ,ci, 

dav'iSrf WoU but later, following reports Bananas-^ amaican: Per pound 8.15. OtoSSwflSlCi'® 

SSnl^c^rS^lnSt fo^eT^ ^ the USSR bad recently made rob- Melsns-Chilean: White 458. Green 5.50: 

mStet Sw3«?hto^S»th aSw croS SOMial Mlea of wU,e * e,Md s - Afncan: 3M - A*o«d »o- °*- 

6. 7.’ a. 7. 7.5, 8. Afternoon: Throe months it 9J. », AB. Vfl, ***■ 
Cathodes, three months mso. Jxerw 
Wlrebars. three months £7955, . 6, 7, 75, 

niM.Mei' with the forward Rice 
. immediately depressed Burn £5/730 to 
£3.700 on liauldailon after the Eastero 
nrlce bad supped beneath the buffer stock 
c omm Thereafter London O t uJna K ti 

. r,BAD 


o mt**< 

+ or 






- £ 









— s- 









— .T ' 

— — 

_ 55 

55 s.z£?«x&.Ttr 5 as staJ Ttfgj rgtfa iss 

the day some sbort-eovering developed 420-450. 
which lifted prices same 50 ‘ 

lows, reports C. GssitUkov. 

1 Royal Exchange Ave^ London EC3V 3LU. TeL: 01-2S3 110L 
Index Guide as at 21st March, 1978 (Base 100 at 14J-T7-) 

Clive Fixed Interest Capital 135.42 

Clive Fixed Interest Income 1ZL34 

CORAL INDEX: Close 466471 







+■ <«■ 



+■ or 


















— 1.9 


f Property Growth .......r..; 8% 

t Vanbrugh Guaranteed 1 - 7.12% 

f /U kirt^a shown tinder insurance and Property. Bond Table. 

r G. Index Limited 01-351 3466. Three Month Zinc 304^-308.5 
29 Lamont Road, Ldnden, SW10 OHS. _ ■ 

1. Tax-free trading on commodlly futures 

2 . The commodity futures market for the smaller Investor 


A recent ads.T.’ Market Report supplement explains how 
trading options helps reduce toe risks Involved in commodity 
trading, whilst retaining the high profit potential. Each 
week we recommend which options to take and advise levels 
W hich to “ trade against'’ This supplement and the next 
two issues of our Market Report will be sent free on 
request. Ring 01-480 6841 or write to:— ' 

CC.S.T. Commodities Ltd 

WalsiP&ham House; 35 Seething Lane, London EC3N 4AH 




atao aoD awe* «J» April. 1978. doe 
» 1978. K .an aveniec rate ol 

S2<»' JO eJ. Application team £4 Am. 

S’ofp £800,000.. 

^ . T**f ouOtaatiS 






rAsa.000 Bill* offered S April 197B due 
c JJlvl978 at 6*n%. TotalawliMUona 
Sg.050.000, . outstanding BHIs NH. 


£500.000 Min eutscandMO. • 


and in tb# MaKar el Companies Act 

creditors ol the aPw^-named Company, 
whfeia is being voluntarily wound uP. aw 
raqatneu. on or before tbo 2Wi J* 
April. 1978. to HM to their full cbr»g*n 
and apraames. their agaroses »d d«- 
criptkMS. full pvtkuton ol ih elr . dews 
or daloH. »l>0 Hie names and addrro« 
of tntlr Solicitors -y if any), to the UMef- 

repaired by notice In wrltina from tte 

S id Ltooldator, are. personally or by the r 
Ikttgri, to come to aad prow their 
debts of claim* at aueft time aod -place 
as shell be speciMd In suchnottce. or 
to . default thereof «ey win ,be_ excluded 
— the beoaht of any distribution mailt 
_.e web debt*, an proved. ■ 

.TED this SOUi dsv ol March. 1978. 
• • £ E. FLOYD, Ltouwaror- ; 

Cash £305. throe months £312.13. 13. to. R , ^ 

II, 1A£. 10. 6, 7. 7J. 7. Kerb; three 
mouths £308, 7. 


Silver was fixed 2.5 b as otmee lower 
for spot delivery In the London bullion 
market yesterday ai 388.55p. UA cent 
eoulvalcnu of tbe fixing levels were: 
spot SOS Ac, down 6.3c: tbree-montb 
544.1t. down 8. Sc: six-mom)) KSXc. down 
ATc; add 12-month 578.1c. down ABC. Tbo 

mtaat oponod at 284.l-Q5.lD I53IH-632C) _ B««u™ UWV — uu ■Limi.ig, »v>« 
and eased allghtbr to dose at 2S2&-2S31 d Sept. 85.SM5.15. Nev 87JWT.65^ Jan. *•' 

f52JO-5SOc) 90.SS-90.1 j. March Dli. Soles: 238. Barley: 

May 79.70-7BJ5, 5«rt. 79^-79^5. Nov. J^ l « b ■ 

0.95-81 AO. Jan. 84A8A4.4S, March 88.95- “»y--l 
SBjsS. Sates: 259. 

Hass 16/24S 3^93.70; Kenya: 





+ or 


+ or 








+ OJ5 



+ 0JJ5 


+ OJ6 





+ 0.48 










+ OJ8 

3 moullis 
Bn Oath.- 

Strawberries— Israeli: 0.48; tv^^STfuTi:^ 

0J0: Spanish: 0.4M.B0. WotbomZSfmKrifl 
Lflttuce— DWL' 24s 2.40. Ptneapptes— 





£5,6BO Ml 
'£6. 717.Bj 
0147-5 3! 

Ivory Coast: <L35dJ0 eat*. Ontoss- 
Dutch: Large UD2.7II, mwiipm Ufl; rneown..— . 
Polish: 2.00; Chilean: Appras. 5Wb 5L50. Ofla 

Capsicn nis K enya: Per pound 8A04L4S; Cocoout (Phil) 

Canary: ILSS. Celery— Spanish: 15s/S6s 

. 54KK8.00. Potaues— Canary: 3.60-3.70: Linseed Oradeto— 

£ per tonne Egyptian: a.nwAO, CWtoU W Preach: Patm 

101.00- 0 1. 161)06. 1541B.SE I05.004I1JO 24a 4M. Cnenmhars-Dutdt: 14A6s 1.80- * 1 

106.46-06 Ailll IQLB5-I0.85 110.2MB AO 220: Canary: L0O-I20. Tomatees— 
lM.BH-03-7wl1LhO-15.60 115.60-08-25 Canary: 3.00-LS): Jeraey: Per pound 0.4B. 

JI2.7S- l2.90)l 1835- 7AS&.1 76.56-12.30 Prtriuro-^rtMws-PerJO-^ Cop*. Philip 

1 18.00- 18.2^1254)6-23. IB 122.50-18 JI0 170-2 JO. Lettace-Per lha BoySeM 

12225-22.601126.00-27 M 123^-82^0 LOO-L2U. Beetroots— Per 28-lb L2O-L40. 1 

Autt..^.|125.00-26.M 128.00-28 JO 128. 76- 28.00 ^5? ut ^ Cr (Iron,. 

— — 1 — — — — 2S-D) OBO. Carrol*— Per bag O.50-1.08. (trams 

Sales; 2^38 tots of SO tonnes. Parsnips— Per 28-lb 0.80-1.00. Onions- Barley BBC. 

w i .uaurr. Ta “ ^ Lrif CX-reflocry price far Per 56-lb t. 40-2.00. Swedes— Per 28-Ib Home Puwrea... 

Dork Northern Spring No. 2: 14per Branulatod basis wititc sugar was fl.40d.46. Rlteberb— Per ponnd. ontdoor Maine 

- — - ^ lump) a ion lor home trade and £lB0J)fl 0.10. Cuenmbers— Per tray 12/24S 1.60- French No. 3 Am 

U362A0) for export. 2.00. Muti roe ms-Per pound ft.40. Apples Whoa., 



y IMPORTED— Wheat: CWRS No 1: 13} 
nw cem. Aorll-May £93 Tfflmry. UA 

April £83.73, May £33, June £82.75 tran- 
BbJptneot East Coast. Rest on quoted. 


,- LME — Turnover 172 (221) tots of 10.008 
ounces. Morning: Thro months- 291.2. 91.3, 
9L3. LT. 14. L5. 1.8. Kerb: Three months 
2814, 81.9, 82. Afternoon: Throe months 
£81, 904. 904, 9L 00.4. 904. 90A 9J.3. 
Keih: Throe montiu 289.9, BO, 88 4, 88.5, 
884, 88, 874. 874, 874, 87. 


In tits absence of first-hand scfllog, 
pr frrff remained tinder pressure through 
the day with renewed consumer de mand 
evident at tho tower levels, reports GUI 

a nd Dtifftis. 1 

jX erierflay’si + nr 1 Buaineai. 

COCOA I Otoe* 1 — I I>une 

Barley and Oats— Aff unquoted. 

HG CA— Location cx-rarm spot prices: 

Peal wheat: Humberside £87.90, Glonces- 

!TO.90? 5 G?oocJiS ll £7?!!^ toSETnZ' m“taSeJeSaey Stu^ 

Tbo UJC. monetary coefficient for the 
week beginning April 11 u expected to 
increase to 1478. 



LONDON— The market was duti^and p flriTI 13. HQ 
(Pence per Idloi 

Australian | 
Greasy Wt 

■’eeterefy^j-J- or| 


1MJ4IJ —58.5 2015.0-1941 
138A&-B2.0 -6AD 188* 
16464-60. 0 -4B.0-1W7.D- 1840 
.1786.MBa -44.76 1845.0-1780 
.1756.0-57.6 -4146 1790.0-1768 
. 16814-1706 —59,5. 1740.0-1716 

• 1MO- MB.0 M 6.Q - 

, InSmattoanl Cecea drsialsattoa iUA 
L cents per pound j — Dally price April 3: 
188.7! (164AS). ludicMor prices March 9: 
lfcday average ,168.78 (158.12): =-day 
avenge 1S4JA (153.001. 

EEC IMPORT LEVIES and premiums 
effective April 5. In order current levy . 

phis May. Juno and July premiums, with May. 22Z.tJ-2S.jj 

previous In brackets. AS In units of £uJy -228.v-a2.ti 

account PW tonne: Common wheat— October 251.0-86.0 

S3.9t 043, 648 r 648 (85.M, 145, 04S, peeomber- 2J5.0J7.0 

0.9S). Darwn wheat— 032.1*. nlL nil. nil Mareh 256.0-594 

(332.16, nH, nil, nil). Rye—' 7B4G. 146, May-- 

L95. 146 (7841, 2.61, !4V S41). Barley duly 

—7941, nil, QlL oil (80.3, WJ, nU. Bill. October (258.M74 

Oils— 77.73, OH. OIL DU (77.08, ofl, nti, ~ 


Burin e> 

price lower V>cStopafl& Mio.”i 272n 

- (£94 

,, . — 10Sffil.788 

ruturoMay £1,891 -364 £1,722.6 

Coffee ruioro.— 

iUi-.-. £1,512 — 18.0 E1.4044 

C«pn *A* Index — 68.63c* —0.65 67.5 r 

Rubber ki)o 46.7Sp -1.26 48.5p 

huxar(haw) £ioO 1—2.0 £101.5 


+ OT 




£644 JZ5 




f 11 6.5 
[S 123-28 
267. Ip 
+ 9.5 £256 

1—42.5 8635 
+ 10.0X601 
+2.0 15295 
I— 17.0 5566 


i-^94 15261 




By O ur C ommodities Staff 
THE AVERAGE price of ffgricul- May. *mu. 
turai land changing hands in 
toe three months to February 
was £2,369 an acre, according to 
figures released by the Ministry 
of Agriculture yesterday. This 
is 3 2 per cent down on toe 
NovemberJanuary average but 

Nominal t Unrooted, a ApriL sMay- 
jun& b June, r AprD-Jaae. pAprti- 
*Par too. 



ROBUST AS opened initially tower. 
However, heavy support busing bold iho 
market firm under strong selling pressure, 
Drexei Burnham Lambert reports. Values 
advanced somewhat with this Impetus 
b&t all attempts at an upward break- 
through were thwarted fay trade selling. 
At the doso values fell lo the lows as 
New York eased and levels wefe UP » 
£35 lower on the day. Dealers said tho 
early steadiness was perhaps due to pro- 
ducer support but the weakness later on 
demonstrated the true sentiment of the 

. _ . aies; o 1 37) tots. 

?“»■ *■$. "*$■ Sydney greasy rto order buyer, still higher than for any three- 

ss - s. er ' = s , s:r,’ 1,1 

-7841 mL nil, ttti (Tujc. nil. a3. nU). k 0^3044494. 3«.t December- February 1976-77 

t> n -. °^ r "!L f82 58 : wisl 6; Dec. 3S6.8««.9 r 357.54564. a; average was £1,728 an acre, 
nti. nti, "tlj- ar jhrof whey and jjareh SW.IW04. 38344R.0, 9; May But the laud price index, 

artsjf l “ J “- KhAbaaisTU * 3 S SJTw t ™ 

sain: m. and area size-group composition 


T?" i nd« ; s t 0 od a t 1M In tt* 

closing steadier. Lewis and Peat report .-^1 CB— Caltle 87.28 per kgJ.w. thre eillODtllS to February, 1977, 

that t he Ma laysia godown price va 212 1+0.121,' u.K.-;&bWp_ _l«4p per and peaked at 131 last June- 

i2N) cents a kilo, (buyer. April). 

No. I 


YeacerCay 1 * 


+ CW 



£ per tonne 




1423 1280 





















J UUB— , 


Jan- Ur. 





56 45-6540 
5S.SH645 57.16-57.201 




kgteSLd.c.w. C+l-ti. C8— Figs G14p per August. 

l5 aKarf 1 “’id waie*: cattle numbers , Reported sales totalled only 
down 4.1 per cent., average price 6647p 13,100 acres agamst 25,000 in 
(+D.68); aecp down W.7 per cent.. Kig NovemberJanuary and 21,000 In 
UiJ!; * i "" 1 M -a- «J» DMember-Febniary. 1976-77. 

Sutland: Cattle down 1.4 per cent™ 

47.10-46, BO 88450 (+L26): Sbaep dovrn 224 per 
•IB. 00-48.10 47.76 cent., 137^p t+14); Ptgs up 184 per 
43.65-49.70 43AM8.S5 cant- 63.7P IDO chau«). 

51.25-5148 514D-50.M SMITH VI ELD (pencp a pound)— 8eaft 

52.S0-5245 62.5A&2.20 Scotch kilted sides SL5 to 5L5; Ulster 
64^4449 5445-6U9 UndQuanen 66,0 to 70,0, foreonanero 374 
66.75-66451 664046.40 to 40.0; Eire Undouarrers 60.0 to 68.0, 
Efi.9ff-S0.Bfi fbrequancre 35.6 la 39.S. 


RANGOON. April 4. 
BURMA produced 9.46m. tonnes 


Ape. i /UarT'^l- (Uoirii auofYetraea 

2i6JQl |85fl.61 1 


(Basn: July L 1993=100) 


April 4 lApnl 3 

iffiotb ago 


14Z &3 jl433.4 1 




CAveroge 1924-2530=100) 










Sine Coaunty 





U.S. Markets 

GRIMSBY FI SH— S upply madroate, de- 

Sales: 2433 (1X91 too at 5 tonnes. 
ICO imBcatar prieas for April 3 (U.5. 
roma per poufid): Colombian Mild Ara- 
blcas 194.64 nPfi.OO): unwashed Anblcaa 
173.00 (90&00); other mild AreUns itlii 

- ’ 1K ^ of ri« m the 1977-78 crip, year, ££* JUPS, TH 

Sales: 361 (435). lots of 15 tonnes, roe Lamb: English small M.0 to 66.0, medium 140,000 tonnes more than ID toe codlings lLs*E3At) lui» tSktariT u/S 
lot of five tonnes. 50.D to KL9. beavr 410 to Ea; Scotdi previous year, according to gov- £4-50, medium dsD-j-LOO snati 12.20- 

physkai dosing nrtros fbnyen wore ^ ia eminent officials here, reports C90 - Wr« plaice a .to, m^unr plaice 

M.rap (43.01 ; May 4Bp (43-75>: Jmo 10 4B -°* p S-Sfl-C-TO. best aman £3J0-iiSfl. m«Uum 

^cotton Ssasssssas 

™ COVENT GARDEN (prices in sterling Of Jane lO September was PALMOIt^-Umlon: dostoa April 3=11.08. 

OITTON—Lhmrp^: Spot and affitoMM per package except where otherwise smaller than expected. High- 338.M. May mDOOTiTjSieSOOLOlWOO, 
sales amounted to 50 tonnes, bringing tbe stated >— Imaarted produce: onroes— Ivf/l July SOOWaa August snnao^ sent’ 

total tor too- week ao tar 10 303 tonnes. Spams: Nsvds SAMriO, Bloods 2JWL00; ^eld paddy strains helped make rsHP » K 

reports F. W. Tatereafi. Demand Cypres: Valencia Late* U Wtoa X49A00; Up for the damage, they Said* fla HAAiS aa. TW; M-^ sales: NIL 

NEW YORK. April 3. 
Cocoa— May 162.50 (167.25). July X5A35 
(U0.75j, Sept. 152.9a. Dec. 147.15. March 
142.90, May 146A5. July 138.08. Sales: 920 

Coffee— " C " Contract: May 1BZ59- 
16L65 (170.00). July 145.88 asked 053.00), 
Sept. 13X70, Dee. 12050. March 11X30- 

117.00, May 114-50 aom.. July U4.00415.00, 
Sept. U0.00-U7.60. Sates: 600 tots. 

Copper— April 39.70 t60A0>. May 6020 
(60.60). June 60.80. July SL30, SepL 6L30. 
Dec. 61 -SO. Jan. 6450, March 6550. Hoy 
MAO, July 67 JO, Sent. 6850. Dec. 6BJ0. 
Jan. 70 JO- Sales: 3.050 lots. 

Cotton— No. 3: May 55. GO-55 .68 (50.00), 
July 56.70-56 JO (57.12), OcL S8-55-58J6. 
Dea 59 Jl-59-55. March 6LW-6L05. May 
ffLSft July 62.7ft. Seles: 65X000 b ales. 
■Gold— Nut available, 
t Lard— Chicago loose 25.75 (same). New 
York prime steam 27 J3 asked C27J5 

tMaize— May 254i^5« (2361). July 

2544-254 (2571). Sept. 2524. Dec. 255-2354, 
March 2624-2624. May 367. 

IPIMinnm— April 220J0 (22SJ0). July 
224J0-325.50 1 220.70). Oct. 328.50-229AD, 
JaO. 232.90-233.10. Apm 236 JO. July 240.80- 

342.00, Sates: 777?? — — 3S — 

{Silver— April 529J0 1 545- 50). May 533J0 

(549.00) , June 537.10, July 541.00, SepL 

549.00, Dec. 561 JO. Jan. 565.40, March 
573.B0, May 583JB. July 590.80, SepL 
589-M. Dec. 613.10, Jan. 616J8. Sales: 
UJ80 lots. Handy and Hannan spot 639.60 

(541.00) . 

Soyabeans— May 6594 asked (6884). July 
065 asked (695). Aug. 657 asked. SepL 
6224-622. Nov. 6104-609. Jan. 614. March 
621. Mar 620. 

Soyabean Oil— May 3A15 asked (2015), 
July 24.60 asked (25.60). Aug. 23-90 asked. 
Sept. 22.96 asked. OcL 2L75-2L80, Dea 
21J0CIJ5, Jan. 21J5-2L40, March 21-30- 
21.40. May 21J0«L30. 

Soyabean Meal — May 171.50-172.00 
(178.70). July 1T4J0-174J0 (181.50). Aug. 
I75.00-175JO. Sc PL 17L50, OcL 167.50, Dea 
16&00-M8JD, Jan. 170.90-170-50, Marti) 

Sneer— tio. 11 —May 7J1-7J2 (7.81), July 
8.11-8.12 (8.111. Sept. 8J5A36. OeL 8.47- 
s M. Jan. 9.00-9.01. March 9J7. May 9.53- 
9.54. July 9.74-9.76, SepL 9J24J6. Sales 3 
2.219 lots. 

Tin — 405-500 asked (500.507 asked). 
•■Wheal-May S194-S12 (3134). July 3134- 
3124 (3151). Sept. 310, Dea 326, March 
332J-3SS. May X)54. 

WINNIPEG. April 3. tHtW— May law 
bkt (U3.M bid). July ULM (11L09), Oct. 
110.00 asked, Nov. 107.50. Dec U&ML 
tt nm M ay 80.80 (SLOO). July 78. GO 
asked (78.70 asked). Oct- 7746 asked, Dec. 

75 A0 bid. 

08 ariey— May 80.00 (82.10), July 80.10 
bid (S1.80). OcL 79Jg asked. Dec. HL90 

SFtawccd— May 241.00 (24240 bid), 
July 239.00 (241 JO), OeL 237 JO asked. 
Nov. 2S4.90 bid. Doc. 235.00. 

mufteai— SCWRS isj per eeu. uroidn 
coo tent cif St Lawrence not available. 

All cents per pound ex-warehouse 
unless otherwise stated. 'Is pa troy 
oanees— 100 ounce lots. 7 Chicago loose 
Ss per 100 Ibs—DepL Of Ag. prices pre- 
vious day. Prime Steam f.o-b- NY boDc 
rank cars, t Cents per 56 lb bushel ex- 
warehouse. 5.000 bushel lots. I is per 
troy ounce for 50 ounce units of 99.0 per 
cent. 001117 delivered ny. 1 Cents per 
troy ounce ex-warehouse. flNew “B"- 
contract in Ss a short ion for bulk lots 
of 100 short tons dehvored f.o.b. care 
Chicago. Toledo, SL Louis and Alton. 
** Ceuta per 69 lb bushel in store, 
tt Cents per 24 !b bushel. tS Cents per 
4S Ih bushel ex-warehouse. H Cents per 
sc lb bushel ex-vrammnse. 1,000 bnshel 
tots. 51 SC per tonne. 

Indian move 
to beat edible 
oil shortage 

NEW DELHI, April 4. 

THE INDIAN Government said 
it had taken several steps to 
improve the domestic edible oils 
position in view of an estimated 
shortfall of 950.000 tonnes in toe 
current agricultural year which 
ends in June. 

Mr. Surift Singh Bamala, Agri- 
culture Minister, said in Pari la- 
ment these measures include 
importing edible oils. 


Gilts unsettled late but equities move ahead 

Share index up 5.3 at 467.8— Stores in demand 


- B wwui mih See*— _ 
bdusblsl Ordbary- 

AccOUllt Dealing Dates 

•First Declare- Last Account 
Dealings tions Dealings Day 
Mar. 13 Mar. 30 Mar. 31 Apr. 11 
Apr. 3 Apr. 13 Apr. 14 Apr. 25 
Apr. 17 Apr. 27 Apr. 28 May 10 

* “ Nm time " deaCnga hub take place 
from 9 JO two business days earlier. 

A much livelier and brighter 
day in stock markets was marred 
by a late reaction in British Funds 
in response to the banking figures 
Firm throughout official trading, 
the Funds closed without altera- 
tion after baring shown rises 
ranging to 1 at the short end 
of the market and to j in the 

The underlying dull and un- 
certain conditions which 
characterised the previous day’s 
trading in equity markets was 
transformed and, with the aid of 
a large investment order spread 
throughout the market, some 
useful gains were recorded. 
Although slightly below the best, 
leading equities closed with rises 
to around two or three pence and 
sometimes more. After being 6 
points up at 2 pan., the FT 30- 
share index closed with a gain 
of 52 at 467 S. 

Bid speculation and another 
long list of company trading 
statements generated a consider- 
able amount of interest, while the 
overall improvement in activity 
was reflected in official markings 
or 5,414 compared with 4,839 on 
Monday. Property shares took on 
a better appearance after the 
recent setback on dearer money 
fears, while investment funds 
found their way into Stores. The 
latter, also buoyed by Budget 
possibilities, recorded above- 
average gains. The ET-Actuaries 
Index for the subsection improved 
1.2 per cent, to 184.64 compared 
with a rise of 0.8 per cent, to 
205.48 in the All-Share index. 

Gilts react late 

Reflecting still their current 
underlying sensitivity. British 
Funds surrendered late in the 
evening, gains extending to i 
which had been achieved only 
gradually during the day. The 
cause of the late reaction was 
disappointment with the banks 1 
eligible liabilities, which was fol- 
lowed by the appearance of stock 
from holders taking the view that 
to-day’s financial Press would 
again criticise the authorities’ 
handling of money supply. Earlier, 
the further increase in the rate 
on this week’s batch of Local 
Authority yearling bonds to- 
gether with the March fall in 
U.K. official reserves had failed 
to harm sentiment. 

German Young 4} per cent, 
were temporarily suspended, at 
£850, at the request of the Ger- 
man authorities to allow interest 
rate alignments. 

Much of a smaller business in 
investment currency represented 
book-squaring and other profes- 
sional operations which. In a 

market rather thin of institu- 
tional and arbitrage interest, 
caused the premium to rally 12 
points to 101i per cent- after 
1021 per cent Yesterday’s SE 
conversion factor was 0.6902 

Hambro Life better 

Persistent demand in a thin 
market prompted a gain of 15 to 
302p, after SGSp, in Harnbro Life; 
the annual results are due a week 
on Friday. Elsewhere in Insur- 
ances; Sun Alliance hardened 2 to 
548p and Phoenix 4 to 262p in 
front of to-day’s preliminary 
announcements. .Commercial 
Union improved 3 to 150p and 
Guardian Royal Exchange put on 
6 to 232p. Of the Brokers, Mfnet 
gained 7 to 181p and Sedgwick 
Forbes added 8 to 393p. 

Late publication of the clearing 
banks’ lending figures for 
the four weeks to March 
25 led to a reaction in 
quotations. Earlier gains of 
around 6 were usually halved and 
Lloyds ended 3 harder at 27Sp, 
after 276o. Nat West dosed a 
penny off at 273p. after 276p. 
Sup ported up to 283p in front of 
the full-year results. Bank of 
Scotland eased on disappointment 
with the per f ormance to finish 
only a penny up on balance at 
276p. Fears of an increase in 
interest rates continued to 
unsettle Hire Purchases and 
Wagon Finance receded 3 more 
to 87p. 

Interest in Breweries was at a 
low level and shares dosed little 
changed. Allied typified con- 
ditions, finishing without altera- 
tion at 88p. after 881 p. Elsewhere, 
High lan d Distilleries rallied 2 to 
141p on further consideration of 
the interim report 

Buildings generally had a firm 
undertone. Still reflecting an in- 
vestment recommendation, March- 
wiel put on 4 more to 27Sp, while 
Tilbury Contracting. 240p, and 
Richard Costain, 2a9p, rose 4 and 

5 respectively. Buying in a re- 
s trie ted market prompted a rise of 

6 to 56p in McNeill Group and, 
ahead of to-morrow's preliminary 
results. Taylor Woodrow hardened 
2 to 3S0p. By way of contrast, 
EL and R. Johnsou-Richards liks 
touched 110p before closing 
easier at 115p following details 
of the proposed bid terms from 
Hep worth Ceramic, unaltered at 
79p. London Brick softened a 
fraction to 62; the annual results 
are due to-morrow. 

Fisons stood out in Chemicals 
with a rise of 10 to 3-“’”* Following 
investment demand. I'- 1 similarly 
affected, dosed 4 to the good at 

Stores wanted 

A good business was transacted 
in leading Stores yesterday as 
buyers returned on hopes that 
any tax concessions made in next 
Tuesday's Budget would stimulate 
consumer spending. British Homes 
put ou 5 to ITSp mid Mothercare 

added 4 at 156p, while Burton A 
rose 3 to 216p and Marks and 
Spencer 2 to 148p. Comment on 
the annual results helped Com- 
bined English Improve 3 to 8Sp. 
W. H. Smith A, in front of to-day’s 
preliminary figures, finned 2 to 
I59p, after 160p. Elsewhere, mail- 
order concern Grattan Ware- 
houses shed 7 to 122p in reaction 
to the disappointing results. 
Freemans; however .stiH benefit- 
ing from Monday’s excellent 
annual figures, put on 4 more 
to 288p. An increased interim divi- 
dend and trebled first-half profits 
heldped Peter Stores touch 46p 
before dosing a penny higher on 
balance at 42p. Rainers moved up 
4 to 92p but Cope Sportswear, a 
thin market declined 5 to 78p. 

A little more interest than of 

6 dearer at 2Q2p, and Simon, 3 up 
at 2i0p. Increased profits and a 
proposed scrip issue caused 
Green bank Industrial to harden a 
penny to 56p, whQe Spirax-Sarco 
made a muted response, at 272 p, 
to the record' figures and forecast 
that the trend, will continue this 
year. Westland traded fairly 
briskly up to 47p for a gain of 2, 
but Bratthwaite were lowered 5 
to 138p and W. E. Norton slipped 
2 to 32p. Among Shipbuildings, 
Yarrow put on 5 to 270p, the 
Board’s confidence in the full-year 
outcome over-riding news of the 
lower first-half profits. 

Foods made a firm showing 
with retail ere well to the fore. 
Associated Dairies revived with a 
jump of 10 to 222p, while Nnrdin 
and Peacock rose 4 to 82p and 

late was shown in the Electrical 
leaders. GEC, up 3 at 252p, were 
helped by a Press suggestion that 
the company may sell its TV 
manufacturing divisions to Hitachi 
of Japan. Support left EMI 2 
dearer at 151p, after 152p. Else- 
where revived demand left 
United Scientific 6 up at 282p, and 
in response to the interim 
statement. Highland Electronics 
hardened a shade to 22 }p. Henry 
Wigall, at 210p, regained 10 of the 
previous day’s fall of 22 which 
followed the lapsing oE Comet 
Radiovirion’s offer, while BICC 
firmed 2 to 106p awaiting to-day’s 
preliminary results. 

Engineerings benefited from the 
appearance of investment funds 
which were not confined to lead- 
ing issues. Davy International 
rose 5 to 219p, after 22 dp, John 
Brown gained 4 to 288p and 
Vickers were the latter amount 
higher at 179p- Tube Divestments 
improved initially but settled only 
2 harder at 366p and GKN, await- 
ing the preliminary results, which 
were in line with market 
estimates, hovered either side of 
274p. Revived speculative interest 
encouraged by bid hopes lifted 
Weir 6 to 120p, after 121p, and 
WGI were also firm at 98p, up 4. 
Others to improve included AFV, 

J. Sainsbuiy 5 to 17 Op. Cullen'S 
Stores attracted speculative 
interest, the Ordinary and A pick- 
ing up 7 apiece at 94p and 93p 
respectively. Tate and Lyle were 
notably Arm at 196p, up 4. 
Cadbury Schweppes edged for- 
ward 1} to 54£p in front of Thurs- 
day's preliminary figures, but 
news that the third quarter 
results had faded to reach 
expectations, dipped a penny 
from J. Lyons at 93p. 

Savoy A featured late in Hotels 
and Caterers with an improve- 
ment of 4 to a 1978 peak of 78p 
on the preliminary figures and 
capita! proposal. Queen’s Moat 
Houses hardened 2 more to 32p 
as bid speculation continued, 
while trading news was reflected 
in Grand Metropolitan, 2} harder 
at 105 ^p, and Trust Houses Forte, 
5 higher at 194p. 

Miscellaneous Industrial leaders 
moved smartly forward on 
genuine investment buying. 
Bo water met good support ahead 
of to-morrow’s annual results and 
firmed 5 to 193p, while Boots, 
helped by consumer spending 
hopes, added 4 at 217p. Turner 
and NewalL which has purchased 
a contro lling stake in a Belgian 
brakes group, rose 6 to 191p, 
while improvements of between 6 

and 8 were recorded In Metal 
Box, 308p, Pffitington, 482p, and 
Unilever, 510p. 

Elsewhere, Channel TnnneS 
survived early profit-taking to 
push forward 3 more to 62p, after 
65p. on further consideration of 
week-end Press comment which 
suggested that the UJC and 
France are reviewing proposals for 
a new cross-Channel project Bid 
hopes were behind a ' fresh 
advance of 2| to 25£p in Talbex, 
while De La Rue moved up '10 to 
280p in a Thin market Wilkinson 
Match were wanted at 169p, up 
5, but Raima were marked down 
a penny to 59p on the disclosure 
that W. Canning had sold its 27.2 
per cent shareholding. 

Motors and Distributors were 
generally better where c h anged. 
Lex Service hardened 2| to 76p 
in response to the chairman's 
optimistic statement which 
accompanied the annual report, 
while Oliver Rix were active and 
J firmer at 7*p following Press 
comment In a thin market 
Charles Horst rose 7 for a two- 
day rise of 11 to 92p on the 
results. Higher earnings lifted 
Appleyaxd 2 to 83p, while Dowty 
hardened 3 to 173p and Lucas 
Industries 4 to 2S4p. Group Lotus 
closed 2 better at a 1978 peak of 
51 p, but small selling left Reliant 
a penny cheaper at 6p. 

Newspapers and kindred trades 
dosed firmer throughout After 
its recent shake-out on profit- 
taking. MlUs and Allen rebounded 
10 to 172p on revived speculative 
demand, while improvements of 
2 and 3 respectively were seen in 
Wace, 40p. and Oxley 'Printing, 
60 p. Ahead of to-morrow's annual 
figures. News International 
improved 5 to 267p. while Thom- 
son, still reflecting the good 
results, improved 3 more to 223p, 
after 225p. 

Properties steadier 

Interest rate worries became less 
of a handicap on Properties but 
some issues fodnd progress diffi- 
cult including Land Securities 
which eventually eased the turn 
to ■ 207p. Conversely, ME PC 
regained 2 to 117p and Stock 
Conversion rebounded 6 to 230p, 
while Slough Estates hardened a 
penny to 109p after news of the 
Chicago office development ven- 
ture. Scottish Metropolitan put on 

2 to 105p on the increased half- 
yearly revenue, while Press men- 
tion caused Aquis Securities to 
improve similar ly tQ a peak for 

the year of 20p. Demand deve- 
loped for Estates Property, 4 
higher at 94p, and London Shop, 

3 better at 62p, but Clarke Nickolls 
shed 2 to 84p. Great Portland, 
down 12 on Monday, made little 
recovery at 280p, up 2, and among 
higher-priced stocks Hammer-son 
A rallied 5 to 560p. 

Currency reasons motivated 
further U-S. selling of British 
Petroleum but once again it was 
absorbed by London sources and . 

the close was. unaltered at 752p, 
after 74Sp. . Elsewhere to. Oils, 
business was light and Shell 
made a small recovery, of 2. to 
52 Op, after 522p, while Royal 
Dutch rallied | to £45 i \ on 
currency premium influences. 
Occasional demand in a thin 
market raised Ofl Expl o ration 8 
to 208p. 

Although more interest was 
shown, to the Investment TtuSt 

Liverpool continued firmly, risii 
1$ more to 23p. a premium nf 

QpL Oh. Yield. 


P/E Brtto(net)C*t) 

heelings- marked 

kqnity t urno ve r £m— 
Bgahy barg ain* total . 

73.84 73J 
77.22 77.1 
467.8 . 462 
X56.1 ‘ 157 
8.79 . OX 

J7JJi 17.1 
8 . 2 S 8.3 

6,414 4,83 

463.8 467.' 
.168.7 1B2J 

•5.84 6.8 

17.17 17.0 
8.18 & 2 I 

4,859 6,49 

6.81 5. 

17.07 17.1 

&22 8j 

74-05 74.44 . 74.73 
77.77 TUao 7U4 
467.7 468J 46Q4 
1B3L9 155.4 157.7 
5.77 6.77 Bl 8 E 

17.04 17.06 17,32 
8.24 &24 8.13 

6,0451 5.061 . 4.233 
72-8? 79.88 E 134 

195321 19.BO 7 14J126 

IB ojb. 48*3. H ajn. -MSA Noon m£~l~9 SttPifCt — 

2 Von. .3 pjn. 468.5. • 

I «*f* index SUM 

■ " Based, oa S3 per cent. corporation tax. -f ND=&to 

Basis 100- Gen. Secs. 35/10/38. Fixed InL l US. tad. OrtL 3 nm.- 'd 
Inez Iin; 65. SB Activity, Jdti-Pec. 1M2. « 

tones 12/9/15. SB Activity . Jdy-Uec. IMS. _ 


. ■ J . . Since CoxapUntton 

ia . . 



* Sort. Sec* 78.68 


t - mi 


X Sl_27 


1. ' O/D 


Isd. OrtL 497.3 




GoldlUaH. 166-6 


S . ’ . (B/SJ 


(5/1S - 

at 8Jp. 

which rallied 3 to 125p. Other • „ . . _ . . , 

Shippings fluctuated narrowly mid Medium priced -ttocte. showed: 
closed little changed. President Steyn 19 off at *89p. 

Overseas Traders were hotaWe , C®** 
for firmness in Australian Agri- South African Knanmals. 

cultural. 2i harder at 67* p. mid Beers fell 5 more to saap— a 
Unhed City Merchant, 3 better 

Among Textiles, British Mohair Profit-Salting i^„ Unlon Coi P° ra ‘ 
closed 2 better at 41p to response 3 down at 280p. . 

to the chairman's manuris^S I^mdon - registered F inanc ials 
ment _ . failed to respond to the -strength 

Awaiting news of the bid °L V U £- although Wo 

situation. Primrose- dropped** 11 *®- 2 * 1 ^ managed an tojprove- 
sharply to 65p ou feare that toe ment of a Pe™y at ^ g P- Selection 

Tongaat offer would fail before 

rallying to dose a penny better NEW HIGHS AND 

nt Mia marniii. ta ngjj£ «q»rW« jTOOt Vd • In th a 

Following news Of the merger Sftara Information Santee yesterday 

talks, J okal Tea awri Longboorne *ujiueii new Highs *nd lows tar 19/8. 
pn t . ' NEW HIGHS (68) 

price of 260p. Other firm spots in 

at 24S5 j, and Castiefleld, 6 to the CANADIANS go 

good at 193p. - ' 


i *?.. 

isi.7 isa: 

85.6 4A 
1 zsa 11^ 

16&6 166 
176;1 lffjj 
Bl.l 48 . 
317.7 118 

7 nri)i*tr-rfm , 


Trust fell 6 to 388p’wtaile'b& 
price influences left Gold 1% >' 
dieaper at 180p. ; 

After 'losing ground ini'. 
Australians rallied in aftac ' 
trading to close barely ; 

balance, mainly reflecting tin. - 
turn in the premium. Bon ' 
vXQe were finally a penny hr- 
at 75p, after 7lp, wtole c»: 
Rio tin to closed 2 easier on bsi' 
at 185p, after I82p. . -The ri ! 
“high flyer™ Nortiwcn H?, 
gave up 2 to 37p. 


Golds uncertain 

Activity in mining- markets 
remained at a low level with price 
movements often erratic owing to 
the fluctuations in the investment 
currency premium. 

South African Golds were 
marked down at the outset of 
business following the sharp faS 
in the bullion, price in overnight 
transatlantic markets which 
reflected news that Switzerland, is 
to end its 40 per cent, gold back- 
ing for banknotes. 

The London bullion price dosed 
$2.75 easier on balance at $179,625 
per ounce, compared with the 
overnight UE. during price of 
around $178. 

Cape and Continental baying of 
Golds in the later dealings 
enabled prices to stage a modest 
recovery, before fresh UB. sefitog 
caused further minor setbacks. 

The Gold Mines index reflected 
the uncertainty of the market, 
falling another 12 to 156 J. 

Losses among heavywexghte 
were restricted to around } as to 
Western Holdings, £17}. while 
Randfoniein eased i to £36}. 



Crown Zeller bach Xonlcs Inc. 


Inco Rio Aieon ■ 

BANKS (1) 

Atoemene Bank 

buildings m 

Brown & Jackson Marcnwld 

KIcNani Grow* 


Also Brent Chemicals 


Mental Oh Pswn stare* 


Comet RadlovlsJon 


Ash & Lacy Ley's Foundries 

Austin U.) Locker (TO 

Bomess Prod u cts Do. A 
Greenbank IndL W.G.I. 

Lainl Gram 

FOODS £3) 

Cvl tan’s Stores Morgan Edwards 

Do. A 


Q ue ans Moat Houses Savoy A 
■ . . INDUSTRIALS tin 

Bawatar Gleves Groan 

Christies mtl. Lomset 

Davies & Newman Piiklngton - ■ 

D Inkle Heel Swire Pacific 

Fogarty /£.> Talbex - 

Gestetner A Winn tads: • 


Hambro Life Sedgwick Forties 


Lotos Car Western Motor 


Pearson Lanaman United Newspapers 


Oxley Printing Snatch. A Saatchl 


A,,0teS ^ TO cm^7^ naland ' 

DIkdit (D.» Taotal 

FMterUj trusts™, - 

Crescent japan London & Liverpool 

Int. Pacific Secs. Scottab & Contiiwnt. 

Int, I nr. Tst. jersey Nippon Fund Sterling 

jardlneSecs. ’ W«t of England 

Australian ASiic. Inctope .. ... 

Gadek Malay 


Long bo nine 


TEAS (31 

Wlllbmsoa .' 

NEW LOWS (23) 

German ? 


Coates Bros. A N-V 

STOWS <13 ... 

ciiuivn - . : 

Bailer fC. HJ Stakes^re<J 

Eva Inds. •. 

Brady Inds. Hontieiafi 

Change Wares W nwa ha. 

MOTORS. (11 

Fodens - - 


Al I natt London Bndfbnl Prto,- 

centrarlncial Ettf. Intaniurepenu 

Do. Cap. _ . • i- 

SHIPPING (I, --. '. 

Common Bras. 


Homfray ..J 


Camellia invs, . Ersttne Kmq 1 * 

OILS tl> 

Shell TrenspL 7pe Pf. 

MINES (1> •• 

East Rand Conn, 


yesterdays; ^ 

up Dew , J-J • 

British Foods — — • • 

Corpus, Dnm. and : 

Foreign Bands — — , . Ik. ■ S® - 

Industrials an X - ~ K 

Financial and Prop. ... 321 '. V ‘ 

Oils «.* f r • 

PtauttaUnas *- J; :. 

Recent Issbes . , 2 ' d . Ir.n r: 

Stock Exchange turnover in March 

Turnover in gilts 
falls further 



There was a further reduction 
in Stock Exchange turnover last 
month- Investors were in no 
mood to commit themselves 
ahead of next Tuesday’s Budget 
and confidence was undermined 
throughout by the continuing 
slide In sterling, which in turn 
gave rise to fresh fears about the 
likelihood of an upturn in short- 
term interest rates. 

Following February's fall of 
6 per cent., business in all 
securities contracted a further 
£1.7biu. or just over 12 per cent, 
to £12.1bn., despite there being 
one more trading day in March. 
The total was the lowest since 
last July’s £8.4bn. and about 46 
per cent off last September’s 
all-time record of £22.4bn. 

Gilt-edged turnover last month 
fel by £1.6bn. to £9.3bn^ or 14.6 
per cent, with business in short- 
dated stocks down SlSbn. to 
£5.Sbo- The number of bargains 
in gilts overall contracted by 
4.379 to 6S.21I with only a small 
decrease, 550 to 26,834, taking 
place in the shorts. 

The average value per bargain 
in gilts as a whole was reduced to 
£214,907 from £275,841. 

The FT Government Securities 
Turnover index fell to 395.7 from 
February’s 463.6; the 1977 
average was 478-S. The Govern- 
ment Securities stocks index 
mirrored buyers’ reluctance over 
tbe month with a loss of 0.52 to 
73.89 from the end-February 
level of 74.41. 

Trading activity in equities., 
on the other band, managed to 
improve slightly. Business 
volume was up £0.05hn. to 
£1.49bn. in value.' with the 
number of bargains up 46,359 
to 3444*79, reflecting a substan- 


British Government and British 
Government Guaranteed 
Short Dated (having five years 
or less to run 

Irish Government 

Short Dated (having five yean 

or less to run) 


U.K. Local Authority 
Overseas Government 
Provincial and Municipal 
fixed Interest Stock 
Preference and Preferred 
Ordinary Shares 
TOTAL (Categories 1-7) 

Ordinary Shares 
TOTAL (Categories 1-8) 











marks price ip) 

on day 













+ 4 



Shell Transport... 



520 • 

+ 2 



Burmah Oil 











-f 2 







+ 3 



British Ley land ... 











+ 3 



Commercial Union 




+ 3 



Rank Org 




+ 2 



Grand Met 




+ 2J 







+ 1 







+ 1 

78 . 


Reed Inti. 




4- 4 



Tate & Lyle 




-i- 4 




• • • . ■ ■ »_■*• 

These indices are the joint compilation of the Financial Times, the Institute of Actin' Ar : . 

and the Faculty <rf Actuaries . 7 *^^ ^ 

. • * ■ ’* .v" . ‘ . 

EQUITY GROUPS Tues., April 4* 1978 ^ ^ h&Z 


Fijnues in oarmthesea riiow number of lnde * YIdd% T»eld% Ratio Index. Index Index tote . 

number oi Not change (ACT (Nnt> Na Na Mo. No. .. i. 

stocks per MCOoo % Corg. st 34%) Corp. • 


BflfTTSH fiOVEJWftff/ 6lUfltf7E£Jl 



500- I 




2 Building Materials (27? 

3 Contracting, Constractira (26)- 

4 r 

First Last Last For 

Deal- Deal- Declare- SetUe- 

ings togs tion ment 

Mar, 21 Apr- 10 Jun.22 July 4 

Apr. 11 Apr. 24 July 6 July 18 
Apr. 25 May 9 July 20 Aug. 1 
For rote indications see end of 
Share Information Service 
Money was given for the call 
in Town and City Properties, 
Grand Metropolitan and 
Warrants, Mills and Alien, North 
Broken Hill. Keyser Ullman. 
Hawker Siddeley, Siebeos Oil 
(UJK.), Brittains. Brooke Tool, 

Peko Wallsend, Lee Cooper, 
Coalite and Chemical, BSG 
International, J. Brown. Yule 
Catto, Selin co art, H. Wlgfall, 
Stafiex International and Bormah 
Oil, while doubles were arranged 
in Siebeos Oil (UJK.), Deben- 
bams, TricentroL, Christie Tyler, 
Highland Distilleries, Kwik-Fit, 
GKN. Tickers, Bunn ah Oil and 
BL WigfalL A short-dated call 
was done in Shell Transport, 
while a put was taken out in 
Bowater. Doubles were arranged 
in Shell Transport and Ladbroke , 

202.46 +0.9 1770 578 7J94 20059 20L44 2BZM MM7 . 

18L29 +07 17.43 577 *428 IMM 31174 382J6 3 SB' 1 

32171 +0.7 17.87 A05 835 31935 31817 322JT 3B& , 

43152 +L1 1552 430 976 426.75 42821 «J9 4&92 

287.87 +13 17.44 7.02 7J6 28473 B&M 

16079 +1.0 1975 . 6.41 ■ 736 15914 15079 

16251 +07 1938 850 7.00 1058 10.97 


tial amount of “ bed-and-break- 
fast” tax-loss transactions build- 
ing up in front of next Tuesday’s 
BudgeL The average value per 
bargain, however, fell from 
£4,697 to £4,341. Tbe FT turn- 
over index for Ordinary shares 
improved nearly 7. per cent, on 
the month to 268.6, which com- 
pares with the 1977 average of 

299.9 and the all-time peak of 

490.9 recorded last September. 
Sentiment was governed by 

the same factors 'restricting 
interest in gilt-edged. But, partly 
on thoughts that lower sterling 
would be beneficial when viewed 
against the sharply depressing 
effect its relative strength had 
on corporate overseas earnings 

towards the end of 1977, equity 
prices improved during the 

The FT 30-share index closed 
the month 20.4 points, or about 
44 per cent, higher at 463.8. This 
was 15£ per cenL off its all-time 
peak of 5497 recorded six months 

Erratic movements to Gold 
shares throughout March 
mirrored similar movements in 
the price of gold bullion which 
closed the month nearly $1 an 
ounce higher at $183,625 after 
ranging between $189,625, its 
highest level since end-December, 
1974, and $177,375. The FT Gold 
Mines index dosed the month 
fractionally easier at 158.7. 

Value of all % Number % 

purchases of of of 

and sales total bargains toed 


Average Average 
value value per 
per day bargain 

number of 
per day 






















2 66J> 

. 22 













12 j6 

































- 26,019 


* Average of all securities. 

Rennfltiatiofl dale usually last day for dealing free of stamp duty. 6 Figures 
batod oa mspcaua eslimaw. O Assumed diridiuid and yield; a Forecast dlridend.- 
eover based ou previous year's ea rn i n g s , r Dividend end yield baaed on prospectus 
or other official estimates for 1973. a Cross, r Figures assumed, t Cover allows 
for coavorslan of shares noi now rankles (or dividend or ranking only for rest ri ct e d 
drrtdendg- 9 Placing price to public, vt Pence unless otherwise Indicated. S Issued 
by tender. HOffeted to holders of Ordinary shares as a *■ rights.” ** Rights 
by wav of capltahsadon. tr Minimum tender price. 99 ReinrrmtncoL SI Issued 
in ctmnaction with reorganisation merger or takeover, fill Jnrrod action. -D Issued 
to former Preference Haiders. ■Allotment letters (or fally-paldi. • Provisional 
or partly-paid allotment letters. * With warrants; 



April .5. 1978 


» -r*(. 

hey Ufo JLnanbwe Ch Ltd. 


-i. . ■SL BHtf' J fl Bi wlijuni .BCi. 

S.7- pettier. 

01-348 SHU 
-rtjd — 
■m3 — 

+u _ 
■rtJ .— - 
-HU — 
+0,3 — 
+U — 

+OJ — 

+ft! «— - 
■MU — 

35 r 

+03 — 

^ weyFisa^pgS m+SJ ~ 

Norwich Union Insurance Group 

fSSStSS’^n fll-^-nOT POBox + Nor^bNRlJNG. 4003 ESH 

Property Bond* — P7D.9 Dlfl 1 — Managed Fund, _ 1203.7 21441 + r 

„ . ... . a* - EouKyFimd ms nt 

'Bxabto life Assurance limited? S®2tf?. l 2!®* y — Jg* 88 

V ; J “V life Assurance Co, IH 
■- ildBtnlingbwiSt.wj. 

■■„. .. - S.E. 


. — Q37.4 

«U4onc*F&Ac_ nil 

J|nv.Ac£II SI2 


* LMoc Jopj^cc; . Hm 

.4t?nFdAee_ 105,4 

■PK3-ACC „ um 


3SS ' 
SS : 
Si 5 

m* JB 
mj “ 
3253 “ 

WJ. „ 





«-s7otn Es-B.s.S£Cr: 

gou .BB.A~--„, ninr , 
Pon.D^F.c*p. — 

'.:- • -jV.' ■5ij I,r 

' ’T.. Lit ; i. life Assurance Ud.« 

; I^gfe^®****** 

- " : W . EV 

-*% • &b 



— Hearts of Oak Benefit Setiety 

OttA" iJW 1 >taWdS«l«A,g,» 

B8S S3 rri 

. w 


13-17. IMMockFBKcTClBSSK 9M87M30 FTm^^dfAj: 
** • ~~ Agricultural Fond. 


Abbey Nbl Fd. (A). 


2S = j&S 

— Money 

Hwenij Assurance Co. UL 

*4XmgWimomSL.E04P4SR. 0t4BB961B 


P»P. Equity & Life An. Cfc? 

no. Cr«T»tort street. W1H2A&. 01-4880857 

n.SilkPtDD.Bd. 1 172.0 

Do, Equity Bd. M0 

DO. IX Kay, Bd. Fill UL7 

Property Growth Acsor. Co. tULf 
L«» House, 1 Croydon, OT> 1LU 01-8800008 

BgartJ of Pair ft6.7 38JJ „.~4 — Asjinajtmu 

Hlfl Snsid life Aaar. Ud.f 

NLA Tw_, Addixrmnbci Rd, CTOS’- 81-088 

Mkoafled Series A, 0,9 964 

fSeZhO. Sor.^d »fc 

. row life Ammue 

:*.Vi ,'r ‘ tUxbrl dge Rood. WJZ. 

Q 1-740 am 

Imperial Life Ass. Co. « t Ornate 
Imperial House, Guildford. 
GnmtbnLabr.SL.ftfJ 7S 


• •-•* ' . . ‘-'lea ■, 

■i'UT.C- J. ,,f «!iL‘*«WW.a,T. 

? 1 -^"Ir .,"?P ■plmitwwuM hl» 

J *.. ' 8t l^iiey Pen4.Acc._S_8 

_ '«} ^ ^tiBl _U&* 

'Cnjrent Bnlt nine 


„ Same Cap. fh,__ 

0UEMSSS44 BqnUy Wm^ . . 

r r^j Z W* life Assurance Co. Ltd. 

- _ 1L Finsbury 


— nop. Mod. 

— nop. Mod. 


-.— asss-^- 


1*1 M«n. Pan*. D^. ut. 

Prwlndnl Life Awnrsnre Co. Lid. 

222. BUhopagaje. E.C2. 01-2*7 

&SS,"fSl Fd -' 

G1U Ft 


~ King & ShaxssnlAd. 

_ St,Ccmbm,TCX 

- *”***-83$ i»- 

IifeAs8HZ.Gs.lMLy ... G ®* ttot 

etmiMs ioii|iMM »fc A —a a ce Ca lid 

l ” r4- 

L °ws for ngsid^ 

•li* eUBBms^ ^HbweAsr.2.1 230.C 

TE*s^' esdn life Assurance Ca. 

■ « ■ ife.HltEb St, Patton Bar. Hetta FJBar SU22 

■ N ^V’Uw s ” UWeb ‘ 8 “- 1 ““ “ 

SAS3S439 Prudential Ffensfons T-HriMt 

— Holbonibara I iEClN2NB. DM031 

Eqatt FtL Mar. U-.ea.fT 
— £x«L 1.U M«r. IB — pM 
JPnmiP.M^-. i.f. ... f 

^ruHm Assurance Ltd? 

d = 

legal ft General (Unit AssarJ Ltd 

Tun bridge Wells, Kent. 

HaL Prop. Bd«. | ICS 

I 1 - 

■ nnQt-lyBOaeWr-WoaWtirHADraB 01-40X8878 

“” :r5 a ~ ^ {CAU «'&S^^ 

J^bEICfu mfcii . Hlrifv n„H> -|077 

. ao.n 

. - 02.0 

.Sdy&ree/O&U. OZ7J 

5I0 *Bni poittBotKi— — nno 

?55« SgggSt» — 

M 070^^4 D^ Pt^Z K% ' 

s ;^| 


rA Ji J . PL 165 

TUTiLBui iESLF.2 ^5 27. 

Carreot vahro April 


E-^-patel life Assuranoef 

•'* -itidtm BTo n 

property initial — Ml 
Do. Accum. .. ■ _J94J 
i aafl a G«Mni(ikii 

1 11 — -bemptEntr-Intt-. mj 

^ M7 

EKempT*&£cL inti. S?J 
.x. aS^ZIZ- MT! 
Exempt ProfKTnU.. KA 
DCLAcoun. ftS.1 

Rothschild Asset Management 

St. SwUhlns Lane, Loodoo, BC+ 01-8C843B8 

N-C.Prop.Mar.3L_l — 32XH -l — 

Royal Insurance Group 

Now Halt Place, UmpOSL 031227 4*22 

Royal Shield Fd. _ [13L7 139J| -Ifl - 

Save & Prosper Group? " . 

-4, GLSLStde&X Lmfa- EXSP3EP. 02-354 8300 
BaL In*. Pd. p»-i 129.3 -0 

ESf®!?i=p = 

»®p®slf PUT P2L9 1234) +0, 

_ janLt— hf&o , 

'Petu Fd (17L1 1S1M ■ 

Jao*jrL*_ 1209*; wia 

SgSgtJftK-K 3 +° 

UCpoLTOUiFlLt— IWif UIZJ| — 

Prices on ‘March SB. 

tWcekly rinallngic 


MlNU |. 


lcsaiaGaMnllm.!M.aps.Ud ... 

u, Qpam Victoria 8t.ZC4N*H» 0MMBBS78 seiwoiier life Group? 

OiasielAahWtaB OS02ZB5U LaGPn<-FU-M*r. LMS3 HUl J — Entc*pd4eHatun.T>DctamoBth. 

rlnvesL PU— _[ 96JS. > _[ — Neat hOl day ApdST. EqnUy My. afl^_ 2144 

remak£rbnrfd..l lltl an I . . I _ Equity 2 Mar. 23. W45 

fi»n lifeAsswi Co. of Vmyko ni* ^3M£2dJS|f 

m. e Sri-— - __ 3043 New Bond St, 917080, m i WWW Fl^ Sit aZ[Sf .1 

Chequer* Sq- tfehridge UB81NE . 52UH ucWDito— MW • I0S71 - | — tm.TTTMJS' - {wi t 

X & S GUt Mar. 28 - SfM 
E4S SeMar. 2S.__I128J 

t - : »!» Fw* 
1 .ii -.a 

= Uoyds Mb Unfft TwL Hagra. Ltd 

— 71.LambantSt,KCS- 

— Esempc- W* . nay* +0.71 7 .m SSmiEZiS 

Deni, aj 

"i P-e: 



t .;4=-. 



-ty of Westminster Assnr. Co. Ltd. -“Stiff aof35?“' • ‘ 


” •- OpLODeoLMar.®. 1204 XHji 

‘TT,__ Hnsd.nx.lfar.2B- msl 

Ol-msi^ B!injjti3»iar.28. M7 


Prop. Fm¥l__ SB,9 

3 nagooFUDd- OB A 

Ul ty Fund 567 

I inland Fon d IDO 

-Fund jzftl 

. H4 

„ in? 

— is.MnSd.Cap— H5L4 
£ Ct JTnsd-Acc.^. H7JL 
■xii- Money Cto — L «J-.- 

- »l°» 

- ■LAFnnd- 

Property lfar.5»__ hSLB 

Property 3 M«t 28-tMSS^H 

BSfii.Cn. Mar. 28 1394 

BS Pa. Arc Mar. 28.1 12&4H 
Mn.Pn.Cp. Mar. 28. h«U SM 
Mn Pn Arc Mar. 28- (224.7 Z3A7 


14U «... 


153.1 __ 


133.7 ..._ 



3S2 ~ 

^ = 


s. Money Ace. _w7J 
IS. Equity Cap. _ if83 
ns.EqoMs'Aec.-.Mf.f — „ . 

and oarrently dosed to ROW u westj gent. 


■formPnitJ — ,-| 

Westminster Asoar. Soc. Hd . 

ephaae 01-08* S8W 

ipKhrUnSZJ^^ Zll ~- 

M. She iCSLif-lte B fea umercla l Union ftonj 

Helena t Dnderobaft. EC3. 01-2BS35D0 

cAnAcUtApr.l J 5L76 1 1 — 

.AzmtdQrUB— .{ 17JS I -~-4 — 

ofederatfes life Insurance Co. 

, I >GbancayLane,WC2A.lHE. IMBIBB 

. -rfhiihui nai i u 

OpLODept. . . .... 

47.71 +0.21 — . J . ■ - - _ ■ _ Scottish Widows’ Group . 

175 ij _J London In demnit y ft fa], Inx Co. Ltd yo B fl » BftiMiiihn t i.Bins nn. OSl-OBSODOOl 

»«S --f — JMO.TOaI gtu iyr»e^lnggl»a.^ _ jpvJnjr^M 1^— |W3 WUrtf- 
SSS^i^S^fJlSj 23-3y v "— ' lny.’^iAptk 

plxadlntanuL— PU 34^ -4jj — Ec.ULTt Mb - . 5 

• - • , Msd.PWLMar.20J 

The London * Manchester Ao*. Gp.? 

! ttoXiaa a ;PWtoi t «iaeXrat : , 03035^33 Solar life Assurance Limited 

1 Grow th FondJ 



Iny.TrmtFmxl.. ■ 
Pr op erty F Und ■ ■ ’ 






fcquUyP p ii d ■ . Ml 1B4| 

Fund. _ 0705 l&X 

- .-sonal Pen- Fd—fTOJ 7X71 

■oity Pen. Fund—" 

SBdlnt PBn-Fll 
nagndPen. Fd.- 





s. { t robin losnranee Co. Ltd 

, CorruhllL E.C JL OMVIMU 

i -REftiSFia* •wk"*" i :T X— . -SiiuTtant Invcuton A s ouxoiice? 


Tbnm. Q«V8 Tbeer ESI K2B 0BQ U-SW 4688 




an *3lact £-Mat 30. Hfit 31 

liffCbapfU^ BC3V6DU. 
Solar MatuqtadS —1125.4 
Solar Property E__ 1104 

Solar Equity S 1522 

Solar FxxLfnLS — U7.9 

Solar CatfaS 994 

SnlyrftpCTf mn- - - 94-5 
Solar MhaacedP— 175J. 
Solar Property p_ 1X02 

Solar EqirtO'P. 150.9 

Solar FHUnLP 1174 

SoZarCaahF— 99.2 
SdaxIaJLP — 944 

1324} +03 - 

lS3 - 

1592 +11 - 
.1242 +04 - 

UM - 

1025 —0.4 - 

m™. : 

15S.f +11 - 
mo +0.7 - 
Z05L< - 

1021 HM - 

— . 723, Sigh Street, Croydoo. 

| ^ edit ft Camnuxee Insurance 


w --- ■* i^-.-LMteaeutst-LowtaiwatsrR^ OMBVtn 

-i yj :: . . icMngd.OTL r -.p2w mm — | - . r^SSShS^. 1 ^. 

— IS- T.M.M gift IM ^SlP bTW , — — — 

t:s“ . --- 1 
&;i :riH 

i ?q;; 

IfclbS , — 57 





^lasader IuHurance Cou Ltd 
-*• J -r i icola Hou»e.Tower PL, EC8. ■ 0WE88031 KqntoPen 

^LPwpAjeil«-.I7L7 7im-=4 - -5££W 

J ; gle SUr Xnsm/SHdland Asn, ■~ J - . -= 

• .r» 7ne*dneedleSt,EC2. 9M88UH NEL FCUSlAnS Ltd • 

!3tC SiglelMld.UWta-WB.9 5UT+AJI AIT «Jton Court; Doddn* Surer. 

soc.“iy jasgSfeBfc i 

. . ,- .jn • 155^ , Sienham R oad. H igh Wycombe <MM3SB7 NtiexMcatayC^i— gOJ 

■f. 1- • -JII ’ Tijjfe ■' n5 gjft ta— 

, [SlnXerert F.-_ 

Sun AHiance Ftmd M snjpn t . Ltd 

StmAniwice House; Horeham. 040384141 

*BMatEniun=i = 

Sun Alliance linked life Ins. Ltd 

Sa&AmMice Honan Horobam 0U30U41 

SSSSSfeSi 5 Mm 

SSd PILf u?4 +0.6 

.. ,, . £5 *: -jiB i^lWMld. Unlta— {99.9 5 

i; ‘.I biz Stmity * ufe Ass. 

:*I« --s S leraham Boad, H 1 -*■ 

'f. 1- • J ' 11534 “^nity FM.- 


.*?;<:■ . Portia] 

Fortfalia Ufe lns. C. Ltd? 

Malax Mod AcdJWJ 
Nalex Cth lncAcc_|47.0 
NtdcscGthlKCap-HU ... 

Next mb- day April l_ . 

.-Hi=d = 

Sm Ufo 4* Canada <UKJ Ltd 

2.3;-4,CoefapurSt-SWlY5BH 01P305400 


Perad-Pn-Pi | 1<M 

3011 Target life Assnnnce Ca Ltd. 


SWteB S3 

Sj? ! ^sarthotomewCt. Waltham Crom VX3U71 ■ 

tFB. Ace. jae — 1 97 .6 




JOPI PensftM* Management Ltd. cnH3Bte£ =Esl 

48,Grme<seinjDrcbSUECS^JHH. ai-«K-taoo GOtpwLCkp. p «S 

,*rlnc« ol wale* BA. B^oo«^. 030a 787813 MaaM5dFmd™P«5 - 

- “" Mzzf = . SMMa ApeiiaMmt faaURa May. Tmnlnfeniattaual Life Ins. Ca Ltd 

.» » J 5* i %:SBlRiE=K m|3_ New Zealand Ins. Ca (CJO Ltd? • a^mmBldga-EOONV. 0MKB487 

p:jii.^JoltFtad_>gM “|-J“ jNUt!andB0i»e.SoBtfaendSS12I5 070288988 ESgS^^r-Rma 
^ IBS . W I— ia«tSriylRV.PlXD-IXMA «aM 1— TRflpMfliy^.Fd — p07J 

esham life Ass. So c. Ltd 

=1= EK 

— _ Man.PWLW.Aec. | 


.... -«'d5 

- 2cr 
r ; v 5 - 





_ Trident life Assurance Chi. Ltd? 

51 35 



61%ft Hill Samuel 5.6i«5 


5 s* - A.B.N. Bank 

si,-. ’-«51 ' Allied Irish i 

ac'-, ;7Cw : ; r i*;^x American Express UR. 

Amro -Bank • 

5i-j iaS.S; A p bt± ....... r 

V v. ■* . ?! Tiwnfni AnckarhAr 

Henry Anshacher ...... 

Banco de BQbao 


« % 
G % 

C. Hoars ft Co. f 61% 

Julian S. “Hodge 
Hongkong. & Shanghai 
Industrial Bk. of. Scot 
KeyStr tnimaiin ;.:... 
Knows] ey ft Co- Ltd. 

I-"’ - . .» U8IIC0 Ue aUU ““ ...... VJ ,TJ XVUUWMB/ W ' 

,*%■- '-e S | Jg. Bank of Credit ft Cmce. 61% Lloyds Badk 

, Bank of Cyprus 
Bank of N.S-W. ...J 
Beige Lt(L.. 

du Rhone -- 

Barclays Bank 

9 % 
S % 

64% London Mercantile 

64% -E. Manson & 'Co. Ltd, 

64% Midland Bank 

7 %« Samuel Montagu 

64%BMpr^an Grenfell 

Barnett Christie Ltd — 84% National- Westminster 64% 
Bremar Holdings Ltd. .74%. Norwich General. Trust 64% 
u*: Brit. Bank of Mid, Bast 64% p. S. Refson ft Co. ... 6i% 

V '» Rrown Shipley - 64% ' Rpssminster Accepfcs 6J% 

5 j Canada Permanent AFT 6J9& - Royal Bk. Canada Trust 64% 

y Canitol C ft C Fin. Ltd. ■ 84% ScnJesmger Umited ' 64% 

Pavzer Ltd 7 - % ■ E* S. Schwab 8}% 

'K redar Holdings 8 % Security Trust Co. Ltd. 74% 

charterhouse Japhet.. 6J% Shenley Trust 9J% 

» . nhoulartoas .'64% Standard Chartered ... 64% 

£ C&coates : 74% Trade Dev. Bank 64% 

, 0 consolidated Credits... J4% Tmstee Sxvmgs Bank 64% 
•Ar,- Cooperative Bank 64% .-.Twentieth Century Bk, 7J% 
: %\ Corinthian Securities... 64% United-Bank of Kuwait 64% 
ft ,' credit I^onnais .....i— 64% Whi teaway Laidlaw ... 

- The Cyprus PopniarBk. 64% WilUams ft Gtyn’s.. 

jjuncan Lawrie 64% • Yorkslure Bank ....J... 

Eagil T rist ■ ...— i—— S'«tylftmfaas 

... 7S_g OoBBOftltt. .. .. 

**%• Taar -ibpoMa S%, tmna depoetu 


8 %t Mar' texafts an gam of £ 10.000 
am wider S%. up v> £2S,oto 31% 
eud wfe I2M00 4*n. 

- Sloct LCtfB dwflBta over OMO 3%: 

“•■■■+ O# 7PI Dernanl <M»atB <%- 

English Transcopt.^.. 
First. London Secs — .. 

. First Nat Fin. Cwpn. 
' . First Nat SecSi Ltd. ... 
,/ ; Antony Gibbs 
J Greyhoutid Gaaranty.i- 
• \t, 1 Grindlays.Bank 

7 % 

of tin Afice a tinc Housed 

fl ' 9" i Guinness Mahon,-. ®*»t new 
,r.? ,f, | Hasnbros Bank — 64% . £*a 

■Ira Mcilh » SttritaE InL 

Snubuh Hours. Gloiimter 


Wm~ ns 




®StGLBimd™_| „ -- ■ 

value for £100 pgtnuma. 

Tyuftm MWHMtfhMlBMy 

lhQBatiaeBoad.IriMuL 0S7233K1 

♦M ! 




Tkahrugh Life Assimutt 
41-tiltelilCKSt, 140. WlHfflJL 01488*023 



lAl +03 

m« +i3 

OU -0.4 
X7t« +0.; 
US', +01 
Si +oj 

Yanlirugh ty^ooi limited 

«■*? Maddox St, Ldn.^71RMA 01480*823 

Oiumrtoed ate 1 m. B»» Rott* 1 tabln 

Welfare Insurance Ca-Ltd-? 

uyiftniraiw^ gwtf- 0MB92333 

Seue to niohmdaft & 

MuchMUir Group. 

Whubar life Assnr. Ca Ltd. 

Sbwet.WlDtJgor. WUulaorMlM 



S^Gmrtb-tUOA — 


Abbey Volt Tsfc Sign. Ltd. (g> iz) 

72-80,liaU>lKNU«RlJ- Ayleabmy. IE065M1 3, ft Mary Air. EC3 A SB P. 

Abbey Cap I tnl DU 53JJ -»DJ[ ODD irt-VUerimiTSL ?4 0 

AW>rylnc«jnx--- „[j75 Mjj-sfljJ 559 wiShTAfArv.l- S6 1 

Abboy 5 3U|-0lf 4,49 nnunKlIoSliKB- 1S3 

Abbey Cen. T lI ^.7 4a.5|+oJ| IK (zIl-'arnasLTRBft— 298 

— . MiphlnromaTsL— 54.9 

Allied Hambro Group taggl? income Fumi— — wi, 

HurM H se. HoBon. Brentwood, Em wx iS.'^SSTFdZI fee 
01-S88 2851 nr Bramood SWT) 21KB0 SftSB5KS“Nl 

Balanced Fonda 

Gartmore Ftmd Mnaa^ers ? (aKgl P er petu al Unit Trust MngTOt? M 

01-2E33E31 48 Hart S£- Henley on Tbameo 0(8128808 
2S.9j-0.1| 0.7b P’potnalCpLCilv J363 317J_1 3J* 

Ji£ to.4 in Piccadilly Unit T. Mgrs: Ltd.? |aXb) 

SS Wnrdctc Hit. Jto London Wall EQ 0280801 

S9J +tU 910 Ean,^ M — J M0 

^37^03 SjgSRJg— » 534 

■MSI & ^srst 


InL Bins. A Aucts-M5 4 
Private Fuoi__t34.9 


BtlLlndE.Fund—M bL2 

(MiLblne. 353 

EUWL & UuL Dev. n 3 

AlUedCapUol 66 b 

llambroFond 100.0 

Hambro Act. FL.|wi 
boom Fnada 
High Yield I'd | 

High Income,. . . 


Soeu. of America— , 

Pacific Fund 

SpecUllit Fttoda 
Smaller Co ‘sFA._ KL7 
2nd Siidjr. Co’s Fd._ MJ 

Recovery Sits. -- 83 6 

M«L3lln. ACdty 37.4 

UvmnsEaratiiRS. 51.1 
ExpL Stair. Co'3 —9(197,4 

Anderson Unit Trust Managers Ltd. 

lS8Fbnehu»bSLFC3HflAA 8230231 

AndoraonU.T, |*52 4&2s| m ..| 430 

Ansbueher Unit Kent. Ca Ltd. 


Inc. MoalUy Fund. |1545 

la) AIL rawthlt— B5 8 384 

talA. C. tW Ebst-„ E0 at. , 

Deoluts Tups. TtWed. 

Gorett (Jobn)? 

77, London Wall. liCi 
S'hldr. Mar. 17. 11243 ULffl 1 

“-iBfsaairjB J h 

Gricveson Btonagmnent Co. Ud. 

+02 352 
_..,+02 3 SI 
57JM+CA 146 
+01 350 

59M+8J CT- 
263^+0.4 L« 
-04 2J0 

„ - Gibbs (Antony) tnit Tst, Mgs. Ltd. Xiitiite.FBRd — &li 

“liSa UL a.w*mtkMSt.KgnxL oi-aaim 

»U«3 IS WAC.ImomeL-fig.0 405^ J *S0 

030 Practical Invest. Ca Xxd.? (yXo) 

44.BlocensburySq.WClA2ltA 01-6238883 
Practical March 22.113*3 —I .4OT 

01-5885820 Amnn. Unua.—— POT-9 20UR — -I C49 

mo) — ! zb provincial Life lav. Co. ' Ltd.? 

222, BisbopstEata E.C2. 01-3176333 

assar— is& 5SI=Hg 


■ SIGrosteCT St, EC2P 2DS. 

Bar* Ctn. March 28« 

I Accum. VnftBi — m h _ _ 

Endeav. Apr. 4 jOTB 

i Accum- UwUJ-.— 
u inch Mr Mar. 01 — _ 
rAeenm. Untai.™ -W 
La&BrelaJ*nr58 K34 
(AcenSt. Ufltts) W-9 


fS PrndL Portfolio Mngro. Lid.? (aXbXc) 

447 Hoi burn Bare. EC1V2NH 014Q3B322 

750 prudetnial (1193 327.0J +LD| 45b 

m Qu liter Management Ca Ltd.? 

43 Ttm&k. Exchange, EC2MSBP. 01400*177 

jfiSCSeUHU sari s 

2.90 Reliance Unit Mgrs. Ltd.? 

Guardian Royal El I’nit Mgrs. Ltd. Reliance Hse, TnnhridEeWelKKL 088322273 

Royal EsctaBBe. EC3P at»N. 01-tOiaQll OppwtannyVa UU +ai| JW 

iflgiGrardhiUTxL-WJ 875| ^>J| 456 ■ S+sl IS 

Hehdemm Administration fat iciigi ? 

1HM( j 93 

Brentwood. Essex. 

v.k. vno 

Artmthnot Securities Ltd (aKc) np.oiwtil»e.- J«| 

a7,QueeoSU4HKtaiEC4RlBY 01-2365BB1 

Extra I nroroa Fd 1088 

High lac. Fund r>S 

«Aarum.Unltsi — 5)2 
(®»% WMnrLVts.3 SJ-2 
prafemuoFund— MS 

(Aentm. Units) 383 

Cxpitnl Fund- 175 

Commodity Fluid — 52.7 

(Accum. UnUa) 744 





( Accum . Unltfl)— 
Growth Fund — - 
Smaller Co*BFa....^_.. 
Eratern AlnlLFd..pU3 

«T>. Wdrul.U i*. 1 hA9 

Foreign Fd. —-—,182.0 

N.Amer. A InL Fd..Q&2 

11771 +0.2| 1057 
+0 l] 951 

9931 II 8BSSBte=« 





5A> .... 



173 -031 
411 -o3 
47.5 —0.71 
35A -0.2 
420 —03 
2U -0.1^ 
234* . 
lB2o . 


28.4 -06 

High lDcamo Fmi*" 

Sector Fund* 


<33 rf +0 

43 4CB +0. 



0S774J1738. POBoc41P.Bxnh gsg-lTondtttr- 0012308521 
Rldpefleld let IT.gtO Z72 


Owrttu mud* 

Australian-— — — l 

3L4rf! £48 

Ridgefield Income. (940 10CL0( — | 935 

Rothschild Asset Management (g) 
72^0. Gale boose Rd. . Arlesbuiy. 07 8650*1 

§is a^wasaSa* is 

N.C. Income FVnd-h4*S 153-71+23 7^7 
N.C. toll. Fd. Cne.y775 *241-0.4 291 
53£ X.C. Inti. Fd.(A«. 4775 82-^ —0-41 191 

ZJB N.C. simllr Cora FW425 15L7t +tuj 4 JU 

3.(B RoLhschild ft Lowndes Ugnt. (a) 
IS SL SntthlBs taoe, LdxuEC*. Cl«tOM 

NowCt-F- * ' 

Frier on 

Exempt— .(£175.0 127 (W| — 4 572 
n iiarch .Vest dcaUng ApKi IX 

4.99 Rowan Unit Trust Magi Ltd 

City-Gale Hse- Finsbury Sq^ECS. 01-008 1006 




273 11471 57* RowanAHL Mar. 29.KL5 

iw U1H Samue l U nit Tst. !9gn.t (a) xbwbIK 8 [gv* 

100 45 Beech SL.DC2PSL3C 014288011 (Accum. L'nxtsi tea* 

fbl BriUahTnuL— .1148 4 US* +131 S27 RwnJlrrLMar-28 (70 o 

Archway Unit Tsf- Mgs. Ltd? (aKc) (^inriTroxt tea 36g -o.^ . 2.95 (Aennn-Liuts. — [854 

7241 ~oM 2 xt Tat, Cm. Fd . Mgr*. Ltd- 

317. High Hoi bum, WC1 V 7NJ. 

ArcbwnyFmd- — 1775 ■ 0251 

Prices at Mur. 28. Nest sub. day April 12. 



(bi Financial Tnut-teB 2 

mb) Income Trust— S»-9 

.rrd,.c3* (bi Financial Trust 


1610} +(L5|:425 




. 3.97 


Barclays Unicorn Ltd CaMfiHHc) i.b) High Yield no- (28 -2 

Unicorn Ho. 252 Romford Bd. E7. 01-53*5544 Intel-? (aKg) 

Unicorn America-. R9A 3Ufl -0J| 150 js.chrtrtopbcrStTrcLE.CJL 

476 54. Jeroyn Street S.W.). 

75b Capital Fd K3 7 

532 Income Fd.. JM3 

" r. 3oTNe 


01-029 8252 
*73) „.J 359 
7ZM — J 7.75 
eu dUnlmc April. 14. 

Pnces at Mar. 

Save ft Prosper Group 

uah u* _a tj 70a — GI-SB7M 4. Great St Helens, Lon d on EC3F 3EP 

tuL Aust lnc____ fi7 6 53-031 2OT l«eL la*. Pond. — 18&.6 91.41+151 630 83-73 Queen Sr_ Edinburgh EH2 *NX 

Da capitnL [ii o 6x3 — J 458 Key Fund Managers Ltd UKgi DeaUngs tw oi4S5i eaaa or 031-220 tmi. 

Do. Exempt Tst __ US 0 
DOl Extra tncomn - 173 

Do. Flonnclnl. 57.1 

Do. MO 703 

Do. General 293 

Do. Growth Arc.—— 385 

Do.InoomoTsl 77.9 

■Do.MA’ns.lbt- 1543 

01-8087070. Save & Prosper Securities Ltd?. 

PrlecM U March 3i. Next sub. day Anil 28. 
DobRceororv—— 139.1 • 423] +03| 570 

DfeTncrtee Ftand_U0R7 
Do. Wldnide Tru5U447 
Btatln-Fd lm--ZJ603 • 

Do. Accum. 167.7 

3.91 International Funds 
552 copiu 

S-S nSi 

Bj» unh-.GRmtb- 
iS lomnlm Inccrac Fund 
High-Yield {53.0 


Key Energy InJd_ IMA 73 4+051 

KeyEflni^&C7en_fc7 *6.7 +04 

^awanidFcl. _R3b3 1455 

Key Income Fund- 76.0 M 8 

Key Fixed lat- Fd- _M.4 633 +0.1| 

Key Small Co‘3 Fd-|34.D 89.0 +07 

Kleinwort Benson Unit Managers? B| . lawaa ^ 

q'ty 30. FUnchnrch St. SC3. 01-0238000 Hl^hHetum 

182 K.B.UnltW.Inc._W3 577j » 479 Ip^piT 

4.92 . MiG. l!nltPd-Ae._llra 2 108^ ..... 4.79 IZl T- . 

4 :« KJBFd.lW.T«S»-l495 5431 ...J 422 

Marins. Bmt w, * m tja « r aUr i L ft C Unit Trust Management Lid? 

Banng Brothers ft Co. Lid.? (aHs) ^ Orhangc. ECt\' Jhp. 01-588 2800 Europe „„_|82_2 

88, LeBdCnhsll St, E.C3. 014882830 TAT Inc. Fl( 1124 7 133.81 J 7.9b Japan.™ 1918 

Stratton Tat 11675 174JM [ 3M LACInUJ>GenFd.|K0 9oi| 4 2JZ VS — —1*63 

DO. Accum. „.„_,tean 2Sbs4 .™| 3M Lawsmi Secs. Ltd. flaUc) 1 s«*te>-Fnnda • 

56-M +0.7] 732 


*6l9 +DJI 




«L3j+05t 479 


7L2u| — flyj 2.90 

Next sab. day April 12 

Biflhopsgole Progressive Mgmt Co.? 

B. Bishops Ente, E.C^. 015886280 

B'galePr.~*MnrJ29.tl74.9 18651 1 351 « t *^ CQm . Drits) 

AcC-Uts-“Mar2a_S£s ZiOiA 351 

B'gxte Int Apr.4_h575 U75I-0.4 172 

(Aecunu Apr-4 — -1173.7 1&4.81 -051 172 

Next sub. day ‘April i& **April il 

83 Gearcc St, Edinburgh EH32JG. 031-ZM30U 


Bridge Fund Managers?(a)(c) 
Xing wnilnrn St. EC4B0AB 

Bridge Inc.* W75 S17I -051 

Bridge Cap. lnc.t— SZ-4 345 — 

Bridge Cap. Acc-t_ K2 375 

Bridge Exemptt— 129 131 ... , 

Bridge Inti.lnc.T- M2 153 

Bridge IntL Ace.t_P5J _ . Ib3 


trCilt and Warrant. 35.7 

tAnu±ncanFd-_ 203 

MAceum Units). — 20 8 

w High Yield 992 

•*1' Accum. Unity) „ 1*7.8 

Deal. jtMno. *Tnes. TtVTed. yTbcra. "*FriL 

6.98 Financial Sees, -l 

J-S Fumis 

372 Select lnten»t 0325 

m Select Income [513 

Seotblts Securities Ltd? 

1070 Scotbits .... 

1030 Seatyielcl (495 525 d( +0.( 

Sf’SSf F»w St&gEfc-ffiJ ^3 :d as 

18. Csnynge Bond. Brlxto L 


Hi Dis.Uar.15 B46 

5m lAccum. Units) — — 6b78 . . 

f-jjf Next st£. day April 12 

4.0 Leonine Administration Ltd 


Ml 1 + 

02723 2241 


•Prices at March 38. Next nib. day April 12. 

nrtces March 29 fc 30. Dealing ^Tnea, Wad. ta,*«. wni»ni 

Deo Hist [723 

Britannia Trust ManogemenffaKg) 

[76.8 Sm| -—i 4-90 Vrywitf 

Ltoyds Bk. Unit TsL Mngrs. Ltd? (a) E&ffl*--— M 

530 Schlesinger Trust Mngnt Ltd (aHz) 

, (Incorporating Trident Trusts) 

140, South SneetDerkins- (PB0QBOM1 


5-22 wig*" via ijfi'n 



ExSra income 183 

Far East — 183 

Financial Sets 623 

Gold & General 99.0 

17™ > ~* h , £8 

Ibc. & Growth 705 

Ian Growth 551 

DnestTstSluirea— KLb 

NatHlghinc 733 

New Issue— — . 333 
North American— 263 

Prntesahwl - BS.9 

Property Shares — 123 
ShteM, , ., .... „..,.KP3 

Status Cbanse QB3 

Univ Energy [29.9 

MX +4LM 
5U +aa 
55.7 +UK 
721 +«3 
3&i +0.4 

U33 +oia 


19J» +001 
675 +«3 
95.7 -0a 
793 +03 
763 +031 
590 +&1 

372n —05 
785n +D3| 
35J —03 
282 — 03t 
4733 +231 
1S5B _ KM1 
465n +051 

+03 958 

Registrar's Dept. Guring-by-Sea, 

Inc. 10% Wdrwl MJ 







01-6231288 imnL Growth— 925 
5201+0.41 4.47 Intf.Ttt. Unite— Z12 
457 Market Leaders— 273 
352 ■Nfl Yield", BA« 

352 Pref-tGlIt Triist_ M3 

638 Property Shares 253 

638 Special Sit. Tst 243 

759 UJC Grtb- Accum. 205 
759 UiGrth.Dlst_ _ 185 

-Xen sub. March 21 






Worthing. West Sossex. 

Firet CBolccdj K8.4 ^ 

Do. (Accum) 656 705 +05 

Second (Capj- 483 515 +03 

Ec.t Accum.) bC.ffl 645 +02 

Third (Income) 786 845 +0.7 

Do. I Accum. I — __ 1055 U3.4 +0.9 

Fourth (Exlucj 57.5 . 6LB +0.4 

Do. (Accum. )._ _ _..(63.S 6B5[ +0.4 

Ltojd-a life Unit Tst Mngrs. Ltd ^ 

73MO, Gmiehoaso Rd-, .Syie^bary. 029659*1 J. HlEBiy Schroder Wagg ft Co. Ltd? 


26 Ja -053 




48.0 +02 
32 3 +031 
4&j -53 

24.9 -53 

29.9 +53 


23.4 _ n 

27.1 +03 

221 +031 

19.1 +£Ol 











s.g EquhyAccuuv (M14 1510[ . — -] 

IS M & G Group? (yXcX») 

433 120. Cbd pside, E.C.2 

Capital Ape, 4 _[943 

lAi+ iim. t-. . 1135 



Co mmuni ty — 64.7 

tAceunv Unite)- . OT.7 

The British Life Office Ltd? (a) Co mpoun d Grow t h- B.9 
Rel lance Haa, Tunbridge WoOtKi. 0882 22271 

BLBrirtahUfe 1464 SIM +051 554 U69 

W.Balaoeed- («5 . *71+94 534 SKSTuniriV™ MS5 

European— 468 

(Accum. Units) 473 

Brown Shipley ft Ca lid? 1 Accum. UnUs) 1055 

Mngni; Founders Ct,EC2 01500 B520 SH 

MBSteSc®! HS=ia^^ES 

Oceanic Trusts (a) ja) . . General [1574 

469 Three Quays, Tower HD, EC3R BBQ. 01028 4S88 Income Apr. 4, 
259 gee also StockJErchnnae Dealings. (Atamuntoi 

JS CAccran-Uiiim 
Austral nsian„ 

(Accum- Units) 


XVMinntf^. Dealings. ( AwnnL tl ^lhii. 2524 

fB3 45.01-0.7 154 Getasrai March 28_ 776 

H33 45.9 >0.7 164 (Accum. Tlmta) 956 

(442 47 Jn -05 220 fauopeM*r-23 M3 

47.4 -05 220 (Accum. Units) — -315 

669a +03 423 2WMtaMka.lill 

743 +03 423 •SpectEx.Murch7. 2056 

Ym -j -0-4 3.94 ‘Recovery Mar. 7— .[1672 , 

54J +0.1 3.70 ‘For tax exempt funds only 

',fli tSj IzL Scottish Equitable FntL Mgrs. Ltd? 
mf+ol 8-5 38 St Andrews Sq> Edinburgh 031-550 »1 01 

2.77 Income Units— 1475 SO-fl -Q3I 533 

ZJl Ac cum. Units (545 56fl +ft6| 533 

Dealina day Wednesday- 

430 I Accum. Units) 

426 High Income... 

534 (Accum. Units) 

534 Japan Income. 

*m (Accum. Unite). 

356 Magnum — 

33 ft^ Unltet —. f 31 -- 


(>ah Life Unit TbL Mngrs. Ltd? (Accum. Units). 
2-8 High St, Potters Bar, Berts. P. Bar 51122 

Can. Gen Dirt. 1364 - 3831+031 451 

Do. Gen. Art-urn H43. 4641 +03f 451 

Do.lnc.Dla- (343 J63+03 752 

.7 46nt+M 732 

hat a 

49J -03 
50.4 -03 
8328 .... 
1113 -03 
4768 +05 
515 +05 
60 7 -03 

w] —02 

255.9 —03 
UL7 +03 
1656 +02 
1523 +0.9 
1533 +06 

195.9 +05 
2443 +0.7 
1669 +03 
2785 +05 

783 —02 
793 -02. 
JS75 -+)3 
2564 -0.4 
1535 -0.4 
1933 -06 

117.9 +03 
1796 +031 
2615 +L0( 
995 . 
313 M 
335 _ 
2113 _ 




■ 335 
-j 136 

Capel (James) Mngt. Ltd? 

100 Old Broad St, BCSNXBQ OlSBBOaO 

a st= =m 1 % 

prices on April 6 Next dealing Apol 19. 
Carilol Unit Fd. Mgrs. Ltd.? feXc) 

Specialised Funds 

Trustee — 

(Accum. Units) 

Chari bond Mar. 28 . 
(Accum. Units). 
Pens, i 

5*92 ^3 

1253 13 ? M 


Ex. Mar. 28— 

JWannlile Hynag fpwnt Lid 

St George’s Way. Stevenage. 0C858101 Target Commodity. 

Growth Units |493 523] — \ 3.90 Target Plum cix !—' 

Mayflower Management Ca Ltd 

MU barn House. NewcmsUo-upon-Tynn 211S3 ] 4/15 Gresham S(_ E1J=V 7AU. 01-60880)0 ^Do. Acc. Unidi 


260 Sebag Unit Tst. Managers Ltd? (a) 

§•£2 POBax5U.Bridbry.Hse-.ECA 01-3305000 

'Sbqss&un ssa^ss 

Security Selection Ltd 
aS 15-19. Uncoloa Inn Fields. WC2 01-83188386 

XU UnriGthTst Aec~B33 246) J 382 

136 UnrlGthTrtlnc— P»3 216) I 382 

a” Stewart Unit TsL Managers Ltd (at) 

730 45. charlotte Sq, Edinburgh. 03+2303271 

Stewart American Fond 
eql Standard Units 
ca Accum. Units _ 

5 _sa Withdrawal Unin J 
A49 Stewart Brttiah Cxpltal Fund 

4.49 ■Standard 1_ 025-2 13831-03) 369 

Accum. Units ptt.4 3556|-03l 368 

679 Son Alliance Fund Stngt. Ltd 

Sun Alliance Hse, Horsham. 04C3 Ml 41 


^ Target Tst Mngrs. Ltd? (ajfe) 

3X Gresham St, HCX Dealin g ); 0 28059*1 

cart iol _____ 

Do. Accum. Units 
Do. High Held .... 

Da Accum. Units „ 

Next ■ 

Charterhsnse Japhet? 

X nuoRwater Bow, EC4. 

C J. In toman go 6 

Accum. U n i ts *40 

CJ.lncome 338 

CJ. Euro. Fin, 256 

Accum. UnUs 298 

CJ.Fd.Inv. Tst _ 06 


Price iVpril 3. Next deal i ng 'April' 

aOfSl qneen St, EC4R 1BH. 

I wtanmtlo nal Trt-. l /y C TZ M 
Basic Unite. TstpSA 

106JM J 835 Target GUt Fund _ 

7U4 ~rl 533 Targga uwth 

SjS Mercury Fond Managers Ltd Doftoinv. Units I 

30; Gresham St, EC2F2EB. 01-6004559 TvsrtZsr. 

466 Income March 21 _|UX4 
466 General March 21 -|67 5 

488 TaqgtPr.Mar.aiL. 
aaa Tgl.TQt_ 

X74 Tr-JT+L. 









34C -03 426 
628 -03 4.45 

37J +02 621 

Z1X1 -08 686 

2795 -13 606 

IMA +0.9 3 00 

29 On +03 484 

268 -03 287 

28A -03 287 

303 -03 381 

3569 +0.9 4.45 

306 +03 842 

x5» Come Growth Frt,il&0 19^+039 447 

Target TsL Mgrs. (Scotland) faXb) 

19, Athol Crescent, Edin. 3. 08X238BBZU2 

3SS2l433£?3£1 ^ 

Extra Income Fd-_p7-9 623a) — 4 1051 




Merc. Gen- Apr. 5, 

Ace.Uts.Apr. 5 

Merc. Int Apr. 5 — 

, ,, Accra. Uts. Apr. 5 — 
fiZ Mere Ext MarJO— , 


363 Midland Ranh Group 
36S Unit Trust Managers Ltd? la) 

3J6 Conrtwuod House, Silver Saeet. Head, 
a. SheaSeld. si 3RD. ®eho7«nwe Trades Union Unit TsL Managers? . 

533 100, Wood Street. ELC2. OLO2880U 

326 TUUTAprC3 148-4 51584 1 532 

tit Transatlantic and Gen. Secs. Co.? 

3.74 91-99 New London Bd. Chelmsford (04) 51051 

Commodity & Geo. 
Da Accum. 

, .. IM4P. Mill, -LI . » 

254 Buctan. Mnr Sffl- — . 
fg IAccubl Units). 

496 Do. Accum. 

1w)po,i H mb) 

Confederation Funds MgL Ud? (a) 

60 Chancery tone. WGA1HE 014M20a2 DjAacum." .... . 

(Growth Fmad J398 40J1 1 466 Equity Exempts — IIS'S 1076^ 1 542 tAccnm. Ujdtij 

Do. Aceum.* - 11028 1176* — J 5>E cumld.MBr.aB__ 

Cosmopolitan Fond Managers. *Pnce« Bt Mac. 31. Next d e a lin g April 20. (AMum-Uaitx) 

is Pout straat, London SW1I9EJ. 0MS58S2& Minsfer Fuad Managers Ltd 

Ownopoln.GlhJd.fl67 U8rt| — ( 532 lCnrt)erH3a.ArtimrSt..£LC4. 01-6231050 feSCt: 

Minuter Apr.3. Jg-7 M.7] — j 532 t Accum. Unfii) 

63-« +0.4J 

2K t2-I 

4LC +03. 
273 -03 
292 —02 
5+7 -O ri 
569 +051 
46.6 +0.11 
492 -06^ 
Mia +0A 
.65.9 +C.4 

Bicrbican Mar20_ 
lAcram. Unlts-i 

Crescent Unit TsL Mgrs. Ud. (aKg) ExampcMar.3: 


538 Van.Gwth.Mxr.2B- 

4 UeMDeCrauEdinbarxhS. 
Crescent Growth . 

Q31-22B49S1 MLA. Unit Trust MgeanL Ltd i_. 

Old Queen street. SW1H9JG. 01-8507333L YantTeeMar.aS- 

JOAUalU p65 364J+05) 443 (Accum. Unhs.) — , 

Ubwd-rtl TTrtM ipmrf (-w\ Wider Morch 30, 

Discretionary Unit Fund Managers ifaS5setM«I^«i ,BU 

as, SJomflrid fjt,EC2M7AL. 01^384488 Mutual Inc. Trt .164.7 

Dteboowo PS54 USjq -J 529 

EL F. Winchester Fund MngL Ltd. National and Commercial (aSZ.u£^?“, 

OMJewi7.EC2 • 01-0061187 SLSl Andrew Square. Ediobntgh 092-558 9151 CopUalMor.Sft— 






„ u . 










m ^ 

[ a . 


























MM1 . 









55 2 


, ril|l 




-4 5W Da ACCUM.- 

LS Tyndall Manages Ltd? 

930 l8.Canyn»Road.BrirthL 

Greet Win eherier-. 117 .0 
GtWinch'or CTsoaslULD 


632 assais 
541 (Accum. Units ... 

341 CanynsaBSar.29 

(Accum. Uasral— 

Equitas Secs. Ltd.?(aKg3 

41 Bishops (?dc,EC2 

tamim..- — 1625 6L3j+oa 438 

Equity ft Law Un. IT. BL? (aHbkc) 

AtaoHdunaRd, High Wycombe. 049433377 
Equity It Law . |616- *4JW( J 4.43 

Framlingtou Unit MgL Ltd (a) 

9968 I 






660 Income Mar. 15 1442 

590 (Accum. Unite)— 196.0 
Copt. Mar. 15 1174 

Em&on ft Dudley TsL Mn airmt Ltd W*™W — P* 2 * 

3), Arlington 8t,S,W.L 01-4807551 National Provident Inv. Mngrs. Ltd? 

Ennw o Dudley T»t_|656 7054 I 380 4a.GracerinnfchSt.ECSP3HH 01-8234200 (Accum. Units) 

JJJLOh.Uh.Tst- 144.7 C7JU 380 Scot.Cap.Mnr.29_ 

(Accum. units r— 53 7 57^+i6f 980 (Accum. Units)— 

'di-SMSSi NHO'ooas. Trust- 114 5 1ZL34 .._J 5^ Swtlnc.ltar.29 
“HP 8 ?!? (Accum. Units)’* __pZL2 12*3 —J 3« t-wt— Wril G 
“Prices 00 March SO. N«_!rt dfOUng Awil 37. capital Growth 
•Prices on April 5, Nod dealing April 19. DaActum. 

National Westmlnsterf(a> B^taftGwwth- 

I^ChcapsLfc. BUVi 6EU. 01^6 MOk ■ FtaoaclrtJWw; 

Capital CAccma-] — U-5 ^ Do.AecumTI 

bctnlM. 65 0 M.ti+0.4^ 7.45 High Inc. ftwrttr- 

F lnanin al 344 M.9I +021 333 j^tcmathmal 

5-7, Ireland Yard, EC4B5DB. 03-2*88971 Cro«th lnv 845 ^«eialSltl,_ 

guAtalTit. g062 tUJUj — ] AM 'portfolio tea" Fd_ »4 728] +fljj 550 TSK Unit Trusts (?) 

fff l ^25“fir“ , ’BT2 M3« — j tot UniuenalFdJd) — SJ3 5U| ..,.J 246 eLClniBtnWra'.Aadowr.Hanta. 028462188 

K^S£!^Z:BS a :d 151 NELTrnst Managers Ltd? (aKg) 



















643 . 














, 764 
—4 7.64 


— 8 

627 , 

1B7I 1 

4231+0 1021 


206 , 
625 +4U] 
294a -03 
UO +03 


Arihathnot Securities (C-L) Lim ited' 
p.O. Bax284, St Heliar, Jartty. 055*72177 

1361 ..-1 356 

! E “ t * W ^S^prUa l — ’ ** 
a«.«*mWa» Selection Fund NV 

Market Opportunities. c)o IrUh Young a 
Oafinraita, 127. Ke^S- Sjdtxj. 
USSlfihares— — PCOJ? - . L-—I — 
Net we* mine March 30. 

iBank of America International SJL 

35 Boolerani Royal, LaxcmbOrag G3>. 


put, at Into, ft S. America Ltd 

4048.QueepVlctnr Ugt. EC*. 01-030313 

£r. k~' r 

Banqne Bruxelles Lambert 
2 Bob Da la Regenee B 1000 Bnuacla 
»e«t4Rn tdLF — AM5 2005) -41 AM 

Barclay! Unicorn InL (Ch, ID Ltd 

1, Charing Crot*. Si- Ruher, Joy. 053*73741 

•Snfijact to fee and wiflihnMing taxes 
BarcJays Unkont InL (L O. Mm) lid 
173n»H>SLUOTgtaa,lAM. 082*4856 


Key&elex MngL Jersey Uu. 

Pt> Box 9R St. Heller. Jersey. fEdq 01-6067(1701 




FouseJex ffrUC* 

Kcyoetax tatT gg ‘«+o^ 

Keyselex Enrope_ 0.77 421 

Japan GikPsamL— SC5&3I 2tB3 .... 
KeswlrxJaWJ. _ E1161 «A7 ... 

OsL Assets Cap . £33139 +083 

ic ^p y gc sihbwwi Mgrs. • 

1 Charing Cross, St Heller. Jersey. (05341 73711 
VoUoy ifie. St Peter Pori. Gras?, mm > 347M 

*-= i 

EMnwort Benson. limited 

20.PtndmrehSt.EC3 01-GZ38360 



Dp. A 

KBbUl Fund. 


^tSScDML 118.40 



- 5VS30.93 
SUS4JJ6 , 

-OJMl 183 

-- . -.._>92e) E76 

■KB act as Loudon paying agents only. 

Da Grtr. Pacific — -PM 

Do. IntL Inconic — .DBS 

DaLeCUanTst [44.9 

Do. MUX Mutual ^4258 

Biahopagate Commodity Sex. lid 

P.Q. Bar 42, DnagU s, Lo-M . 0021-23811 



OiigiBoUy iisud at *$10 
Bridge Management Ltd. 

P.O. Box S08, Croud Cayman. Cayman la. 
NTmahlApr.*——! Y14.939 J+4M51 - 

Britannia TsL Mngmt. (Cl) Ltd 
30 Bath St. St. Hehcr. Jersey. 052*7311* 

" ' 480 


Lloyds Bt (CJ.) urr Mgrs. 

F.O. Bex 19S.St Helicr, Jerter. 05342TCEI 

Uoyda International MgmnL SJL 

7 Roe du Rhone, P.O. Boa 179, 1211 Gen era V. 

Ueydj ftLCtfciMgnva J3W J 17J 

U^dsDiL Income. D>3MBB j5m( | 653 

M ft G Group 

Thnw Quays. Tower Hill ECSt 6BQ. 01-CS 4533 

Growth Invert 
InmL Fd ey 

Ul \Ship dealing April 10. 

Butterfield Management. Co. Ltd 

p.O. Bor 195, Hamnree, Bannnda. 

Buttress Equity —gu IM 1 L9B 

Buttress Incoase.--K00 3.W 746 

Prices at Uor. laTSext rah. day April 10 

Capital thteraatiozml SJL 

37 run Notre- Dsmc. Luxembourg. 

Capitol Int. Fond-I 5US1555 | -- -- 1 -* 
Chaiterhaue Japhet 
1 . PotenjuriarSow. EC4. 01-3483900 

A^Ksl-Z 5g 


(Accum Coital 1 

Sanmel Montagu Ldn. Agts. 

114. Old Broad SLE.CU* 

Apollo Fd Mar. S2-K 

JanfertUar.31 B 

lT7Grp. Mar. 23 — BTSD3 
117 Jersey Nsr.22.W4 *8 
llTJaytfs Uar. 39- [00.98 

Murray, Johnstone (Inv. Adviser) 

183, Hope SU(2ssgortCa 041-2215321 

280 * Hope St ^Fd. 
*rtmnqr Fund 


I SUS9.60 

•NAV March 15, 

l=d = 

Fon dia— ^ 

Emperor Fmw....J 


Clive Investment* (Jersey) Ltd 

KXL Box SSOlSl Heller. Jenoy. DBS* 87381. 

CllW) Gilt FtUCD .19.91 - 4.93] — J UJB 

CUva GUt FU. clay.). n.n 9.93| XL0O 

Cwrahill Ins. (Gsernsey) Ltd 
p.O. Bos 157, SL Peter Port. Gnawer 
fotnLJtaa.Fd. |2&4.fl 179. Of [ — 

Delta Group . - 

p o. Box SOIL Nassau. Bahamas. 

Delta Inv. M*r. 2S_ (S142 L49( __-4 — 

Deatseher I n vea ti noiMVaat 

Postlach 20M Blebergasse 8-108000 Franhfnit. 

CQncentra IDMH30 aUg+OlM — 

lutRanertandH—PlOUB 70J^-0^D) — 

Dreyfus Interamtimental Inv. Fd 
P.O. Box N3712, Nassau, Bahomas. 

NAV Mat 30 |HSEUI 13M] 1 — * 

Emsan & Dudley TsLMgtJroyJLtdL 

P.O. Box 73, SL Heller, Jersey. 05M2059X 

EJDGLC.T. [2136 22051 -OJJ — 

F. ft a MgmL Ltd Inv. Advises* 

tz Laurence Pouniney mu. ECffiOBA. 

01-823 4880 

CenLFd.M0r.2S_] SUS473 [ 1 — 

Fidelity MgmL ft Rea (Bda) Ltd 

P.Q, Box AO, BmiIImb, Bermuda. 

Fidelity AmLAsa— SUS22J3 
Fidail ty Int Fund „ SDS2499 . . . 

S ® = 

Fidelity Ster.Fdo_ £7.46 
SeriMAgntnl.) — £352 

Series BCPactacL- £ 751 
Series D (AmJtaM 0487 

First VQang Commodity Trusts 

8. SLCeoigebSL Douglas. XjOlM. 

®824 41182. Ldn. AgbtDuobsr & COu LtxL. 

53, Pah Mall, London SW275JH- (fl-S8078S7 

AtlUfoU.gU 327] ) 2-20 

FrtVkDbLQpLTrt.pMD 83.081 —A' L2 

Honing Japan Fund SA. 

37. roe Notro-Dame, Lmsmbaurg 

Flmg.Apr.4 1 5US47J7 | m .4 — 

Free World Find Md 
Bottcrfield BJdEr HamDtoa. Bennnda- 
NAVFeh.28 [ SU^U665 ) —4 — 

G. T. Managemen t lid. Ldn. Agts. 
Park Bra. 18 FtaAnxy Oreun London ECX 
Teh 0T@ 813L TUL-.88BUM7 

G-t Pacific FYL 1 $US125U | — J — 

M a n aa riwiBi t Rifmotlra al IM 

c/o B£ of Bernmda FTOot SL, Hamltn. Btuda. 

Anchor ‘BT Unita„ SiHa » 1 L« 

Anchor la LPd ItUSUt 4UZf 196 

G.T. W* i iBiid i Ltd. 

Bt at Bermuda. Front St, Hamltn, Buxta 

BerroJ^eF. 1 $USC56ri f_._| •-« 

GJ-SFd 1 5US662 | _ZJ •-» 

G.T. MgL (Ante) Ltd 

Hutchison Hoe. Hbreonrt Rd, Hong Kong 

s£ttfiB=nHfcuroai a 

G.T. M a n ng em ent (Jersey) Ltd 

Royal Trt, She, Cbtcwrterie, SL EUKar, Jersey 

G J. Asia Strrtlng— ]C1? 31 1389] I 153 

Bank of Baara da (gncoMirt Lt d. 

3153. io Miet. Owrar. ^Ma+aazm 

Gutuxore Invest lid Ldn. Agts. 

2, SLHary Axe, London. EC3. 01-283 3S31 

Gartwoe Fbod Mntfc War East) lid. 

1503 Butriuaon HraJA Haxcumt Rd, HJKonz 

HK&Pae.U.Trt— jfanSS TlW Hs 

Japan Fd- IWSSZiS l5S ___) 650 

N. American T»t — TOSfjCS 1UW — J 2J0 
IntL Bond Fund — ^EltZM MM)+4.45{ 620 
Gartmaralmstoent MngL Ltd. 

P.O. Box 32. DougbuIOlL „ 08M239U 

IntBmflbcna) I^a_QlL 22.41 I 115 
Da Growth — S7.l] _...J 5.41 

Hsmbn Pacific Fond MgznL lid 

2110, Connaught Centre, Hong Kong 
Far Bart ManX — [BMjS IU2 — 

Japan Fund . BD57J6 764 — -- i — 

Handuns (Gnernsey) Ltd/ 

Hambro Fond Mgrs. (CL) lid 

P.O. Box 85, Goemtfgr O0UBS1 

IntnLBond '51 . .UMJ* MB^+0« SAD 

?^^*a; gp 1 m 

InL Ssga. W.SDfflS , 33?+0Lil^ 250 
Pnees on Apr. & Next dwaling Apr. 12. 

Hendenra Baring Fund Mgrs. Ltd 

P.O. Bos N4323, Nassau, Bahamas 

EBU-Sanmel ft Oo. (Gnernsey) Ui 

8 LoFebno St, Peter Post Gaeraoey. CJ. 

Gnernsay T rt ,&484 1588) +15] 388 

Hill Samuel Overseas Fund SLA. 

37, Hue Nocre-Dame, Luxembonre 

H6.74 17jU|-U2) — 

Interaational Pacific Inv. MngL Ltd 

PO Box R287. 58, Htt St, Sidney. Aart 

JrartinEqofiy'Dd.hUB L9B| -| — 

JJB.E. Manager* Ofersey) Ud 
PO Bor 194. Royal Tst Hse, JerseyttSS* 27441 

Jew ErtraLTrt- 0258 ^UBJ) | — 

As at Feb. 28. Next sob. day Mira 3L 

Janflne Fleming ft Ca lid 
*80i Floor, On no ug h t Centre, Hong 
Jardlne Eatn. 7ii.-. ) StnCOOM ! 3M 

JSSSiKH fflEP d £B 


Next sub. March 3L 

Kcnqhfiee Management jerwy lid 

2, Charing Croat SL Hehcn Jersey. 0034 73741 


Negit SJL -i 

18a Boulerord Royal, Loxembanrs . * 

NAV Man 17 1 SOSUU» | — J — : 

Negit Ltd 

Bank of n *i n i nJa QMp, HaadUou. Brxda. 
NAV March W --— |M*0 — ' | j — 

Phoenix Intenutlnul J . 

FQ Bax 77, SL Pe ter Pe at, Guernsey. 
2&ter-DollarFniid_|SUS21 233) [ — * 

P l tp a t y Growth Overseas Ltd 

28lrtahTown,(Stagraliar '(Gib) 8188 

UjS. Dollar Fund _[ JT7S88ZJ | I - 

Sterling Ftmd l 02888 | ... J — 

Rothschild Asset Management (CX) 
P.OBox 5& SL Julians CLGoeinscy.0481 223SI 
O.CJEqJV. Iter. 31 _B3.0, B.Orfl — J 307 
OC-liK JFd. Apr. 3_(152 0 161J +2.3 737 

O.CJntLFd. Barjstei - 

O.CSmC0F«Mai«Ln|7.9 .lg.7 3.44; 

OC- Comoohixy [1246 1315 1 487 

O. C. Mr.Comdty.f _|S25J5 2675) 4 - 

*Pric* on Mar. 31. Non dealing A uni 14. 

tPrice on March 2L Next dealing April 17.. 

Rdyal Trust (CD Fd MgL Ltd - 

P. O.Box 194, Royal Trt Bae, Jersey. 0524 27441 

R.T. Intt. Fd. IBB835 923 | 3.(0- 

R.T. IntT. OrtJ P*L- » OTj | 321 

Prices at ranch ih Next dcaUng April 14- 

Save & Prosper International 
Dealing to: 

^SnmlSL,SLHelier, Jersey 053+3^91 
UL Donar-dmambtaiad Fonda , 

Xm 1 

I® - 

DlrFxdlnt—MarJB 84S 

Far Eastern *t ■ 3651 i 

North American** . 143 

Sepro**t___ [m5 

^ FOnda 

Capital*- . 

Channel Islands*— BAL4 148.9 
Ccamnod-Mar. 30 _ [227-4 223.7] .. — | — 

SLPxd.Mar.23 P203 _....[ 10.92 

Prices on “April A —March 29. “—March 3a 
ffVeeUr DeahngK. 

SchlcBlngcr International MngL lid 

41, La Motto SL, St. Heller, Jeoey. 053473588. 

-14| ■ 1.: 
-06 51 



“ OUtFd. 

78 -W 

“Mfl _ 

23.5 +62| 
103 -1 

10 .26 -606) 







iatL Fd. Jers«r ns, 

IntnLFd-Lxmbrg. „(9.7fi 

“Far East Fund |95-ffl ..... 

“Next sob. day April 5. 

Schroder Life Group 

Entcrpriro House, Portsmouth. .070527723 

htradhul Funds 

CEqaity [1083 U5_2j — . 

5 Equity 114.4 021.6 . — — 

EFlxed Interest M8J .1694 — 

SFbced Inter es t. . ._ 1B3.7 U03 ..... — 

£Monaged 124.9' 1S2( — • 

^Managed — (UHL U6j0| ..... — _ 

J. Henry Schroder Wagg ft Ca lid. 

130, Chesprtdo, E.C2. 01-5884000 






Qsesp5 Apr. 3 r ' HB_ 

HrafedaSs ^ 

Sentry Assurance International Ud 
P.O. Box 336, Hamlllan 5 Be rmu da 

Managed Fund |WSli3W 280^ | — 

Singer ft Friedland e r Ldn. Agents 

20. Cannon SL.EC4. 01-248RMB 

Dekafbnds ID1GS19 639 

Tokyo Trt Mar. 28 -l iUS tt g | | Uta 

Stronghold Management Limited 

-P.(LBoK315i,SLHelier, Jersey- 0534-71480 
Commodity Trust _ 1 90 A3 95i9( ~...| — , 

Sminvest (Jersey) Ltd Cs) 
RO.BoxBB.SZ Heher, Jersqy. 053473873 
American Ind.Tst_(£7J6 . 7Jlj-ai3j L33 
Cupper Trait — fcP-K 11-85-0891 — 
Jap. index Trt. @1.95 lUq .[ — . 

Surinveat Tnut Managera Ltd ft). > 
4R Athol Street, Douglas, LoJt 082* 23314 
The SUrar Trart-.DMi in6) -18! 

Rlchinoiid Bond B7.I1873 197.11 ...... 

Do. Platinum Bd 112.6 116S — oJa 

Da Gold Bd — bm.9 Ufa -06| 

Do.Bm.97/tBBd — f 

TSB Unit Trust Managers (CJ.) Lid 
BagateUe Rtt, St Sarioor, Jnsey, (S347394 
Jersey Fund- JMA 46.7J +D6I 5J4+ 



Guernsey Fund — [44 4 467| +0 J| 

Prices on April 5. Next rab. day April 12. 

Tokyo Pacific Holdings N-V. « 

Tirtiwd« Management Ca K.V, Curoeua 
NAV per share March SB, SUS50.49. 
Tokyo Pacific Illdgs. (Seacard) Jf.V. 
iwtimia Management Ca EV, Curucaa j 

NAV per share March 2R 5US3681 j. 

Tyndall Group 1 

P.O. Box 2258 Hsmnton S, Benanda. U7G3 
Overseas Mar. 28— U* . — .] 600 

(Accum. Urubu— — PtfSlJB lttj — 

3,Wny lot Mar. !&.. PCS25M 2 jBB[ 1 — 




( Accum- Shares) —j£20J5 JXe« ^..., 

TASOFMar. 29 778 W8 

(Accum. Shares! 778. 80.0 

Jersey FAMar. 29— 1B9.0 MOA 

(NmvJ.Acc.UlS.i_ 2598 _275A 

Gilt Fund Mar. 29_ 1118 U3.8C 

(Accum. Shares) — (M06 1438 

view Boore Dooglas. Dte of Man. K2* XXB5> 

Managed Mar. 18— PZ7.6 134.4J | — 

Utd. Intel MngmnL (CX) Ltd 

24, Maicmrfer Street St Holier. Jersey. 

U.LB. Fund RDSIHIja U1«J | SJJ_ 

United States TsL IntL Adv. Co. 

14, Rue Akb-inger. Lnxemboorg. 
U6.TSLIn*.Fnd— | SUS9L56 |— OJMJ 0.95 
Net asset April 3. 

S, G. Warburg ft Co. Ltd 
30, Gresbam Street ECS. J01-&KI-&55 

Cnv_Bd.Pd.Apr. 3_| ggffl jl 
ten. InL ‘ 


Warburg Invest. MngL Jrsy. lid 
1. Charing Cross, SL Heller, Jbj. Cl 0634R7-& 
OIF Ltd. March Jn.lBJfflLX tM _... 

sassaar p| 

^SS:terr® J, JS = 

World Wide Growth HnugemntO> 1 

10a, Boulevard Royal, Luxembourg. 
Worldwide Gth Ftj SUS12.99 l-ODS ~ 

Street HUi. 81-WO-W) 

Sfd. l-ia = 

^“oltscma wj 3 - 


where Indicated and arc in pence unions othcrtus« 
~ nr lor all buyinC expwuws. a Ottered pnees 

____ based on offer price, d Bstunatcd.g To-day’s 

of UJCftauiB Periodic premium lnscracec plana » Sindh 

premium inramee. it Offered ralee includes all expenses except agent’s comnuGsaon. 
r Offered price include* all am nia If boueht throucb manaeera. a Prerioua *if ’a price, 
t Net of tax on realised capital gains unless indiatedEyf !, Guernsey piss, f Saspaaded. 

lodnde an.cgpjcngea. b TW ny’a pricoL c yidd b» 
opening Price, h Kstrtbnaoofrte of U.K. taxes, p P 
Offered ralre iseludes aL 

•1 an m-i iw If bought throudi managers, a PTCriOU* 1 
l capital gains unless indicatedby +• I. Guernsey gross. $ 
+ Yield before Jerxey tax. t Ex-snbdmilon. 






Friends* PrnvdL Unit Tr. aigrs.V 

UUum Court, Doriclnc. Surrey. 

Netear 15S.5 

PtahmnEnri,Dortdng. 03063055, Nelilar High Inc ~WJ , _ 

w . Par Court Fuad : 

Friends Prav.Uta-.j407 
Da Actum. 1518 



3911 (MIBB G enera l.. ■ ■ 4« 

(b) Da A etttm. n7 

(b> TSB Income — 

(b) Pa Accum , _ W5 

«« Raihsciitid Asset Maa^emmT ^aSSsZ-IItio 

573 +8fl 
6U " 

_ 179 
+(L4j 704 
+03| 704 

G.T. Unit Managers Ltd.? 

11 Flnahory arcus EC2M7DD 

CJ.Cap.lBC - (61 

Do-Aec- — n.9 

CT.Inc. Fd-Un— 1518 
G.T. U3. & Gen__ 13L6 
OlT. Japan 6Geu_ 275.4 
OGLPunaSxOV) — 130 

G.T. lnfL PUod UOO 

GJ. Four YdsFd_« 03 

■381 ”0.9 
998 -IO 
Sfilf -02 
146X -20 
2906X +38 


3173 +0.7 
567 ..... 

Norwich Union Insurance Grou p (b) Ulster Ranh?' (a) 

m ^raniM 'PO Bwt 4, NorwiritNRl 3NG. 080322200 faring StreoLBalfaSL 

5.40 .Group — (3196 336*4 334 (b)Ulrter Growth— [J62 38.9J+1WI £29 

Fear! Trust Manaeera Ud- taJteMx) xJnit Trust Account ft MgmL Ltd. 

?G. ft A. Trust (a) (g) 
ft, RarlalgblhL, Brentwood 
i.ftA— — ,pg.B 

2ja JS3Hi5hHolhorn.wnV7EB 
180 'Po«l GrnwthFd—.j^O 
Agaan U nits . . 25-3 

Peart Inc. 106 

Pearl Unit Trt— .. J38 
(Accum, UidW— |4A° 

01-403 8U1 




... Hn* William SLEC4R9AH 
Friars Ksc. Fmut-f 
5« WieierGnh.njd.OF 
5j£ Da Accum.. 

s-n Wieler Growth Pond 

Pelican Units Admin. Ltd. (gMx) Kinc wrniam stEcmaoK di-asusi 

UE?m 227300 BlFeanCalnSL.3tanchaster 061^380080 income Units R83 29 Rd 1 4JO 

32.91 +00J 4,71 Pelican Units [780 8*4+039 £20 Accum. U nltn 1B.7 Mfl —4 LB 



(BUB8 8212) 


(01-995 8321) 

^eS5rSl 0 H Su RO1U, ' an <»« High Road, 

Deposit Rato 503, Shan Accounts LID, London W* 2NG. 

Snb’pn. Shares 700. Term Shares 2 yrs. Deposit Rate 5.75 Share Accounts 6.35, 
fixed I over Share Accomtu Sab'pn. Shares 7-50. 



(81-267 2911) 

Deposit Rate 60S, Share Areanatfi L50. .. 

sum a»w *5TT»JaK its “i**? Eoafl ' 

VBMS sm 
WalfonX House, SUL Hertlotfl DmiI. 
Enfield EN3 5LQ. 

3 718^ 4W9 S »**.. LS5 l yt. 
•With effect from apis, l 

London NWS iBT. 

Deposit Raic 5.20*, Share Accounts ii.LT 

ST-Jl K 



Motors and Cycles 


1.71 B. 



6;_, ... 


5 *f, 

! 9J 



96 ■ 


140 ■ 


Components . 


1.27 4 

Do. Capital £1 



270 1+5 1 t4.£l 



U U 26* 

SlisS P 
!P 1 

49*j> 39 
'56 50*2 
38 30 

32 21 

111 92 




M ■=: 

J £-- 


a _:..J 
£51% -**J 




98 - 



% S 

5 ? 

h 67 
7.9 184 
5.9(168 36 

i il fi in 



61 ■ 

78 — 








32 24 

60 45 

116 87 


210 1 

76 167 

65 57 

42 130 





232 I. 1434 

73 2.9 

i s b ». 









37 > 24 

S*2 12 

51 41 

82 69 

41 36 

25 19 

63 50 

44*j 25 

26 18 

24 20 

22 21 
99 84 

61 50 
31*2 20 


31 26 

28 23 

27 23 

29 18 

62 46 

50 44*2 

44 31*2 

32*2 27 
59 48 

49 41 

38 34 

59 36 


3 2 


9.0 65 

4.3 55 

6 82 
55 92 
6 31 

9 187 

118 78 

6.0 76 
125 £9% 





13 6 

62 55 

130 103 
62 53 

111 95 

73 a 
23 16 






kGDtailac Ito 

rn sfiuutca 


Do Capital 50p_] 152 











IF 2 

Ami blit <500.1 79 

g 2 


— 26 

530 4$ 

28J. 71 
- 12 
- 100 * 

- 156 
4 146 
13.9 97 79 

76 66 

66 156 


89 . 


14 f 

^ [& “ 



M “7*j 

S 575 

46 423 . 

Sr m 2 

56 423 . 

a » b 

si 70 

H aP 2 

^ iff 2 

7* 131 


~ 99& 86 

r bo 4 m *2 

tx “ * 

8 8 & 

7a 188*2161 

” % 15 

w tos% 


« 68 


i« 93 81*2 

fi 8 S' 

H £Q3 £M5 
H 75 71 

M 115 95 




H 2 


♦332 10 
05 10 

♦257 U 

'oteCattalOp— . 

o\ v 





32*2 1 10 |ZmCpa-5BD024 



151 43(24.4 
11 4.7 28.9 
lOl 6 2 23.8 





fmnfcan Hrbr. SMJ 


t r 



Net (Ctrl 

C7c | * | 25 





161 |+2 1 9.0 1 

Sri Lanka 

(125 iLunman. 1 125 |_!_.| 55 1 


(390 |Bla*re£I 1 480 I — 150.0 ] 

(130 [Bnofeates 1." 145 |......[U.O ( 





, 19 


! 66 ^56 

37*2 27*j 
20 13*2 

58. 50 
-48 41 

.15 12 

■26 22 
180 180 
19 16 

13 9i 
•30 17 
34 25 

29*2 25 
20 17 

115 80 

74 44 

22 18 
19% 13*z 
33 25 

18 13 JLob.' 

95 73 IL®,. 





238 ( 

33sf jtlO 


Unless otherwise Indicated, prices and act dividends arc la 
Ipotr ud dtawlmt lwi are SSp. prManfe 

»■ ImmuhmI 

and. where possOde. ere updated m half -yearly Bgnns. P/E»ar» 
calculated bo the basis af set distribution; bracketed npm 
Indicate U per cent, or pan difference If calculsted <m “nfl" 
dtarib u tien. Cbm* are based en - muri nMm " dtstritaden. 
VMdi are baaed en middle prices, a»e ikb, adfotfed la ACT eC 
34 per (oL and tibn Car nine ef dedaxed cBstritattoos and 
rights. Securities with denembmtteas other than sterling ara 
quoted tnctusne of the Investment ttolUr prendam. 

A Sterling denomlnstad seewities which lnelurin inaestmiA 
Hnpar premium. _ 

• "Tap" Stack. 

• Highs and Lows marfced time have bsen adjusted to bHow' 
for rights issues lor cash. 

f Interim since increased or irsaned. 
t Interim since reduced, passed or deterred. 

jj Ttzlree to non-residents on application. 

4 Figures or report awaited. 

tt Unlisted sec u r i t y . ■ 

# Price at time of suspension. 

4 Indicated dividend alter pending scrip and/or rights issue; 

cover relates to previous dividend or forecast. 

'** Free of Stamp Duty. 

4 Merger bid or reorsanisati tm in ptugre e a. 

4 . Not comparable. 

am* interim: reduced and/or reduced earnings 

f Forecast dividend; cover on earnings updated by latest. 
Interim statement 

X Cow allow* for conversion of shares no* now ranking for. 
dividends or ranking only tor restricted dividend. 

* Cover does not allow for shares which may also tank lor 
dividend at a future dale. No P/E ratio usually provided, j 

<f Excluding a Anal dividend declaration. 1 

* He clonal price. j 

0 No par value. 

a Tax free, b Figures based on p eoapcctua oc other official 
estimate, c Cents, d Dividend rate paid or payable on pert, 
at capital; cover based on dividend on full capital, 
e Redemption yield, f Flat yield, g Assumed dividend and 
yield, b Assumed dividend and yield alter scrip issue, 
j Payment from capital sources, k Kenya, m Interim higher 
previous total, n Rights issue p^wfiwg q Earnings 
based on preliminary figures, r Ausralian cur ren cy, 
s Dividend and yield exclude a special payment, t indicated 
dividend: cover relate to previous dividend. P/E ratio baaed 
on latest annul earnings, n Forecast dividend: cover.based 
on previous year's earnings, v Tax free up to 30p hi the £. 
w Yield allow* for currency clause, y Dividend and yield 
based on merger terms. 1 Dividend and yield include a 
special payment Cover does not apply to special payment. 
A Net dividend and yield B Preference di v idend passed or 
deferred. C Canadian- D Cover and P/E ratio exclude profits 
Of U.K. aerospace subsidiaries. E Issue price. F Dividend 
and yield based on prospectus or other official estimates for 
1877-78. C Assumed dividend and yield after pending scrip, 
and/or rights issue. H Dividend and yield based on. 
t a rep e c tus or other official Mtimate tor 1878-77. K Figures . 
baaed on prospectus or other official est i m a te* for 1878. 
■ Dividend and yield based on prospectus or other off! rial 
estimates fee 1978. N Dividend suad yield based on prospectus 
or other official estimates for 1918. P Dividend and yield 
based on prospectus or ether official nttmaio: lor 1917. 

Q Chou. T Figures assumed. U No sjerrificam Corporation 
Tax payable. Z Dividend total to date, ff Yield based on 
assumption Treasury BUI Eote soys unchanged until maturity 
at stock. 

Abbreviations: a ex dividend; sex scrip Issue; w ex rights; a rx 
all; A ex capital distribution. 

“ Recent Issues ” and “ Rights ” Page < 

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W 1 Industrials 


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LONDON, SWl TEL: 01-S34 8890 

Wednesday April 5 1978 

Japanese steel curbs 
approved by EEC 


EEC Foreign Ministers to-day imposed at the beginning of this will not be formally wound up. 
approved an agreement in prin- year. however, and may be reactivated 

ciple negotiated by the European The European Free Trade If Japan fails to observe its 
Commission which will limit Area steel exporters have pricing obligations under the 
Japan's steel exports to the Com- already concluded arangements bilateral agreement, 
m unity this year to slightly more and talks are also going on with The commission believes that 
more than 1.4m. tonnes. This is Romania, Hungary, Poland, and Japanese steel exports to the 
about the same as last year’s . EEC last year slightly exceeded 

level but 10 per cent, below EEC Foreign Ministers have tbe levels set in its voluntary 
deliveries in 1976. decided against taking any restraint arrangements and is 

In exchange Japanese steel immediate retaliatory mea- keen to ensure that Japan 
exporters will be allowed to sell sures against Japan, despite honours its commitments in the 
their steel at slightly less than dissatisfaction with the trade future- , . . _ _ . 

the prices charged by EEC manu- concessions offered in last The spokesman said that the 
facturers. The competitive mar- month’s negotiations with the EEC offer to Spain was designed 
gin will be 4 per cent for special European Commission. But in to take account of its pending 
steels and 6 per cent, for other response to what axe con- application to join the Corn- 
types of steel sidered inadequate tariff cuts inanity and of the need to 

*L_ . offered by both Japan and tbe restructure its steel industry. For 

The arrangements apparently u, e EEC f s f 0 toughen Its that reason, Spain was being 

sa i“l y Brl .^ lsl1 ^? ve , ra f n ®fi; bargaining position at the offered terms as generous as 
which had earlier objected that forthcoming GATT talks by those offered to Japan, 
they were not strict enough. It reane £ ng provisionally the Negotiations with Czechoslo- 
had sought to have the price ^ of own offe £ vakia have been complicated by 

margins adjusted to 3 per cent. ■ the fact that a much higher pre- 
fer special steels and 5 per cent. South Africaf although so far portion of steel produced in 

for other products. there have been only fleeting Eastern Europe is sub-standard 

The Ministers also authorised contacts with the Soviet Union than in the West. The Czechs 
the Commission to offer Spain a and East Germany. have asked the EEC to exempt 

deal on terms br