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~ : L_T ' Ga ^Sshmtt8Xhtxniao - - 

>S £ s*2r““rass 

SSSS. *wjw 

No. 27,532 

Wednesday April 12 1978 






WrifehrKtbKlI Btenttea 

The International Meetianite Metal Co.Ltd. 


continental, selunc pricbj AU5rft(A ? Sd05* as-ghjm 


Public spending up £550m. • Aid for small businesses • Lending rate raised to 7±% 

income tax cut to bring 3% growth 


optimistic, assumptions which 

iury was then projecting a rise in real Gross obscure, and possibly o 

Product of 3A per cent, between the second effectively imply a drop in the rate of increase in eara- 

' • ^ ™£ > !?l' tax Vv ' ortil nearly £2bn. In 1978-79, and The Treasury 

’ Domestic Pro 

' vifhtio ^ niS p 1 ea ^ e y» the Chancellor of the Exchequer, halves of 1977 and .1978. but even after the Budget ings from about 14 per cent in the present pay round 

’ -hfRniftM* e ? coura ging “ a level of economic activity measures it is now forecasting an increase of 3 per cent, to roughly 7 per cent, next year, 

imcient to get unemployment moving significantly on the same comparison. B 

A decline in sterling is also implicitly assumed with 
The net effect of the tax cuts is to raise the projected references both to the exchange rate being determined 

rate of growth during the coming 12 months from 2 to primarily by market forces and to an improvement in 

labour cost competitiveness. 

h f Q “f asure ® J are Nearly aimed at.satisfyihgTrdh part 6 .u nu . «ui*u S u. c i, mu.iuis uu . 

' - ™ ; "~ a Wld , e ^ge of political and personal aspira- 2A per cent, (without any stimulus) to 3 per cent. 
on& m a pre-election period as well as meeting the test 

;• l markets. However, even on the Treasury’s own stated calcul 


a growth rate of 3 per cent, is required before the rise unable to prevent a significant rise in the inflation rate 

than this year, 
reflected in bis 
rise in indirect 




Old tax 

New tax 

Tax cut 





53qgJe persons 


5,000 p-a. 




10,000 p-a. 

3.42005 - 

3,170 M 


15,000 pj*. 




Married couples (no 


5,000 pjt. 

7 .20 5 JO 



10,000 pa. 




15.000 pa. 



454 JO 

Sterling M3 had grown in the month to mid-March by only 
* per cent., “ confirming that the trend of monetary 

• - At* Jt. * r M r _ , " •- . UMOUi 1 CULta IU (UC LUVCL' 

■ /er °* e growth of the money supply by introducing a men t as distinct from his objectives ' 

.. ; >.wer target rate of increase for 1978-79 and by nicreas- J _ tCiIt uhuuihiub 

: . .vjg Minimum Lending Rate by a full point to 7i per cent The official forecasts published yesterday highlight the He placed much less emphasis on any kind of formal d-ALfi, has’rnmp hack 1 into the desired ranee 

• • • - limitations on the Chancellor’s room for manoeuvre. The incomes policy- than in recent years with no mention of ** 6 

z ife same time some of the demands of theTvC and current account surplus this year, for example, is now any Phase Four as such. However, he attempted to allay City fears in this field 

7v! e Labour Party have been reflected in the introduction projected at £750m. in 1978, half the level forecast last ,, ... , . . ... by announcing a target range of increase of 8 to 12 per 

a reduced rate band of income-tax, and in the nse in October, and the surplus is expected to decline to an ** 0 W ® ve J' he stressed his measures impact on ltymg f or 1973.79 and bv increasing Minimum Lending 
r benefits; .while Mr. Healey went out of his way to annual rate of £500m. in the first half of next vear. standards and proposed early disoissions with both sides Ra te both f 0r domestic and international reasons. 

- : dal specifically with the Liberal Party's concerns, J of industry to discuss what kind of policies would be ’ UOLil uu « 

jtably in the proposals on profit sharing.' and- the ex- The 12-month rate of retail price inflation is likely to appropriate *■ both in the field of prices and earnings.’* The main monetary feature to arouse possible concern 
" ‘ --dieted proposals to aid smalt businesses reach 7 per cent, in the spring or early summer and . n -j * 1 - .is likely to be the ' projected public sector borrowing 

::: _ * * „ remain f&rly steady at about this level The Chancellor said monetary policy was the other part requirement of £S.54bn. in 197S-79. 

• ;ae Budget measures will, however, be insufficient to y y of his counter-inflation policy, and that the likely 

.= s i-'w^set the deterioration in .other economic fectors/notably The Treasury warns in its forecasts that there could be increase in sterling M3, the broadly defined money This is slightly higher than expected and compares with 
:.; r '7Se foreign trade outlook, since the last statement by a slight acceleration in the annual rate to 8 per cent, by supply, iu the year ending in mid-April would be just a £S. 6 bn. ceiling for the year agreed with the inter- 

- r/x. Healey in October. the spring of 1979. This is based on the somewhat above the 9 t«i 13 per cent, target range. national Monetary Fund. Continued on Back Page 

1 Features Pages 20-23. • Editorial comment Page 22. • Lex Baek Page 

Text of speech .‘Pages 15 and 16. • Details and reactions Pages 1 7-19. 


Lower rate band of 25% 

HCOME TAX: Total reductions of £2.4bn. in 
;.'fl year. Lower .rate of tax at 25 per cent. 

first £750 of taxable income will affect 4m. 
rVer paid. ~ Single person's allowance and 
^ _fe’s earnings allowance raised by £40 to 
.35 and married aDowanceby £80 to £1,535. 
,'~lditional allowance for .one-parent families 
“ creased by £40 to £550; Pensioners 1 age 
owance increased by £50 for single person, 
for married. Age allowance income limit 
~~sed to £4,000- Cost of introfluctmn of lower 
- :^ad will be XLfibh., : with personal allowance 
' costing £550ixL- \. ..... ; " ‘ J 

"aX BANDS: XJpper* limit of basic . rate goes- 
it; from £6,090 to £7,000. 'The 40- per cfent 
"na will remain .on next £1,000, followed by 
;; "b bands- of iLOOfl; two of £1,500, oiie ; of 
TOOO, one of £2^00 and one of £5,500. The 
.. " per eent rate Will be reached at a taxable 
"• ome of £23,000 compared with present 
.,000. • ' • 

.... reshold for 10 per cent rate at surcharge 
’ " sed from £^500 to £1,700. Threshold for 
... per cent, rate -goes up from £2.000 to £2^150. 

. ^?cial helpi for-retired people paying the sur- 
.“irge - . 

CORPORATION TAX: Rates unchanged, 
s. limit for small companies raised from 
to £50,000. Limit for marginal relief 
(tape£|isg between 42 and 52 per cent) raised 
from' £65,000 to £85,000. To' apply from 
. March jU* 1977. 

on losses 

or to anal 
to- qualify . 

)xemption limit 


ULD dependency allowance exemption, limit 
widows and other social securitf heneflei'. 
js ruised to £S0^ Income llmit-. on chlid’s 
ned in cmne-_ inoreased from £^0- to £500. 

KIND: The Warnings’ limit, 
ive which,'the ; special rules for taxing bene- 
1 jn kjwj "apply increased from £7,500 to 
500 £roji»;the year 1979/80, 

X AVOIR AN CE: Retrospective legislation 
inst >“ bemmodity carry” scheme. - Three 
.Jr schemes; to be 1 stopped. - ' 

|oFTT-SHAMNG: Scheme to be spelt out in 
,ance B(U. :Will make employees eligible 
up'tp £500 sharps a year tax free. 
iF-EMPLOYER and partners liviiig In the 
. and : forking abroad ' to. receive similar 
relief on earning abroad to that granted 
[employees last yeori -V 

ERS- To be. taxed ..under Schedule D 
ead of Schedule - E. a concession prin dp- 
aimed, to benefit those' involved in opera- 
s in the North Sea. • 

VINGS: New issue of : saviors certificate 
June with yield of just under 6.8 per cent 
ear over its : four-yeiar life, 'and maximum 
ding for any one saver of £2,000. 

T TRUSTS: Corporatioa tax rate on these 
approved investment trust reduced to. 10 
cent, on chargeable, gains from April i. 

DCK -RELIEF: To- continue . indefinitely 
.1 permanent, scheme, based on inflation - 
muting, - can be introduced, . if ho progress 
f :t year, legislation' to write-off. balance of 
t two years' relief-^-olso ail relief oa 
ance after. six years. : . 

(NSIONS: Married couple’s pension! - inr, 
by £320 to £31.20 in November, 
gle person’s peosion- . up £2 to £19.50.. 
ILD BENEFIT: Rate to be increased -In 
ril 1979 to £4 for all childrep- As a first 
alment.7Dp increase to be paid Jn. J<Iovem- 
. . . bringing rate to £3 for all children; Pre* 
im for first children of one parent families 
je doubled from £1 to £2 in November. 

. iARETTES: Supplementary duty on higher 
• ! yield cigarettes— Uipse with, tar, .yield di 
milligrammes or more— from September 4- 
14 :es, if hifflier tax passed on . in full, up by 
; jnd 7p for 20. ' 

fS TAX: On gifts within family 
s, tax to be deferred until 
sses on loans and guarantees 
JGT. cstiifl. / Liipit for retire- 

sed fronf £20,000 to £50,000. 

Gains up to. £1,000 in any yriur exempt Rate 
cut from 30 to 15' per. cent, oh gains of £1,000- 
£5,000. Marginal relief .up to £9,500. EffecUve 
April ^•1977. 

VALUE ADDED TAX: Registration threshold 
raised from £7.500 to £10.000. Relief against 
VAT- for bad debts triiere debtor insolvent 

L0SSES: Unincorporated businesses will be 
able to set trading losses piade in early years 
against income received previously. 

FARMERS: Able to average incomes for 
ineome tax purposes over two years if 
incomes vary by 30 per cent or more. Farm 
building allowance in first year raised to 30 

HOTELS: Construction or, extension begun 
from yesterday qualifies for 20 per cent initial 
capital allowance and 4 per cent annual 
allowance for hotel :a£ at least 10 bedrooms. 

GROWTH RATE: ''Budget gives full year 
stimulus to economy of some £2.5bn. (£2bn. 
in 1978-79). Will add l per cent, more to 
output in the next. 12 months. GDP should 
■increase by total of 3 per cent at 1970 prices 
— ^the biggest rise for five years. 

PAT RATES: Chancellor warned inflation rate 
would rise significantly next year unless there 
are much lower increases in wages than this 
year. . - 

terday from 61 per-cent to 74* per cent by 
Bank of England, - 

MONETARY POLICY: MS target growth 
range for 1978/9 to be 8 to 12 per cent Level 
of DCE will be below £6bn. set out in Letter 
of Intent to IMF in 1976. Rolling six monthly 
targets will be adopted for M3. In March, M3 
grew by only one half per cent, and Ml slightly 
less. Figures fqr M3 in 1977/78 will probably 
be just above 9 to 13 per cent, range, but 
under 14 per cent 

for 1978/79 forecast at £8.5bn^ 5.25 per cent 
of GDP. 

Contingency reserves 

PURUC EXPENDITURE: Total additional 
expenditure of £550m. .in 1978-79 (at 1977 
prices j' to be taken from £750m. contingency 

HEALTH SERVICE: To receive £50m. in 1978- 
1979; education £40m.; environmental services 
£20hl, including small factories in rural areas. 

SCHOOL MEALS: Planned autumn increase in 
charges 1 dropped,. EEC subsidy for school milk 
■to be used to proride free school milk for- seven 
to H year olds. Net'oost of these two measures 
in 1978-79 £68m. - -; • 

IMF. LOANS: Arrangements to be made to 
prepay a further -Slbn.- to the IMF this year 
in addition to the $lbn< prepayment announced 
ia January 

NEW BOND: British Government $350m. issue 
to be made in Ihe New York market in two 
tranches of seven and 15 years respectively. 

Ministers confident 
they have won time 

Unions fear lack 
of job stimulus 



MINISTERS WERE convinced, 
following initial reactions to the 
Budget last night, that the 
Government could stay in office 
until the summer recess, thus 
leaving Mr. James Callaghan to 
choose the timing of a General 
Election. . 

What was not clear, however, 
was bow effective the Budget 
would be in achieving its objec- 
tive of halving average pay in- 
creases in the next round' of 
wage negotiations, starting on 
August 1. 

Many Labour MPs doubted 
that it would have a great impact 
in persuading the trade . unions 
to curb wage demands for a fur- 
ther year, or that the scale of 
Income-tax cuts would benefit 
Labour sufficiently in electoral 

Reaction from Labour MPs 
was generally unenthusiastic, 
but mildly favourable. ■ Con- 
servatives were critical, seeing, 
dangers of increased inflation in 
the proposed rise in public 

Vital to the Government's 
survival through the summer 
was the reaction of the 13 Liberal 
MPs. who made it clear that they 
would not launch a roll-scale 
attack on the Budget or on the 
Finance Bill implementing the 
Chancellor's proposals. 

Mr. John Par doe. Liberal eco- 
nomic spokesman, welcomed the 
positive discrimination in favour 

of small businesses and the 
profit-sharing scheme his party 
had advocated. He insisted, 
though, ■ after meeting fellow 
MPs, that the cuts in direct 
taxation were insufficient. 

The LiyJtajs intend la table 
amendments JUring the commit- 
tee stags of the Finance Bill call- 
ing for more cuts in income tax. 
The tactic could embarrass the 
Government if the amendments 
receive support from the Tories. 

However, the capacity of 
Ministers to accept defeats must 
not be underestimated, if’ it 
means that Mr. Callaghan can 
choose between going to the 
country in the autumn or con- 
ceivably early next year, rather 
thah be forced into a snap elec- 
tion he fears he would lose. 


The first electoral reactions to 
the Budget .come to-morrow at 
the Garscadden hj-eleclion in 
Glasgow and nf*t Thursday at 
Lambeth Central. Labour must 
hold both with something to 
spare if it is to have much pros- 
pect of retaining power. 

Lahour MPs thought the 
Budget would win more votes 
than it would lose, but some 
moderates were worried at the 
psychological effect of not re- 
ducing the standard rate of tax. 

Left-wingers supported the 
raisin a of the tax threshold aod 

the introduction of the lower 
rate, but argued that much 
more emphasis should have 
been placed on increased public 
spending. There was no sign of 
any revolt in Labour’s ranks, 

. Mrs. Thatcher, the Conserva- 
tive leader, regarded it as -an 
electioneering Budget, but 
seemed to contradict this by 
claiming that the “very modest 
tax reductions would disappear 

Later, at a private meeting of 
the Conservative back-bench 
finance committee. Sir Geoffrey 
Howe, shadow 1 Chancellor, 
attacked' the ta- Y proposals on 
four grounds. They, had left 
the standard rate too high, 
thresholds had not been restored 
to the level of 3973. the top rate 
of tax remained unchanged, and 
the top. bands had not been 
widened sufficiently, he said. 

More generally he thought 
that the danger of higher 
inflation later in the year was 
endemic in the Budget The 
increase - in the public sector 
borrowing rate did not augur 
well for the future. 

union leaders in tbeir first 
reactions to the Budget centred 
around fears that it would not 
do enough to reduce unemploy- 

While many TUC general 
council members welcomed 
specific proposals, there was 
widely-expressed regret that Mr. 
Healey had noj heeded the trade 
union movement's ea’l for a 
much more substantial 'increase 
in public spending. 

Mr. Moss Evans, new leader 
of Britain’s largest onion, the 
Transport and General Workers, 
was pleased to see the tax cuts, 
which were helpful and would 
create some jobs and he was glad 
the Chancellor had not. asked the 
unions for any quid pro quo. He 
.would, however, have liked to 
see more public spending. 

Union leaders in the public 
sector took a more forceful view 
on the need for increased public 
spending. Mr. Godfrey Drain, 
general secretary or the 
National and Local Government 
Officers Association, was dis- 
appointed by the proposed 
increased level of spending. 

Mr. David Basnett, TUC chair- 
man and general secretary of the 
General and Municipal Workers 
Union said that the boost to the 

economy was welcome but "while 
reduction in the tax burden will 
be. welcomed by workers who 
have jobs it does very Little for 
those wbo are still unemployed.” 
• Mr. Frank Chappie, of the 
Electricians, said the Chancellor 
could have afforded to go further 
on taxation and take many of 
the lower paid out of tax 

The question now is whether 
the Chancellor’s measures will 
enhance the possibility of some 
form of union agreement on 
further pay policy next year. 
Union leaders like Mr. Evans 
and Mr. Drain continue to stress 
that a formal understanding is 
not in prospect but in a broadly 
optimistic reaction Mr. Len 
Murray. TUC general secretary, 
said that the ’ TUC looked for- 
ward to discussions with 
Ministers on the range of 
economic issues. 

f in New York 

— I April lU 

Prei in m 

S»«it . Sl.SW-3757 i Fin7EO-g7W 
1 rruintli Onw.09 pnfm. • J.a&t1s-C.0£|nii 
,i iiuintlis 0,14 Ohs ill« . ilia 
12 month'. l.a»« 1 . 1 M.W 


(Prices in pence unless otherwise indicated) 




■d Breweries .... S9 + .3 
d. “Biscuit ...... 82 +. 8 

■ham 650 +10 

. {A0 ..... 238 + 10 

. sh. - teyiand 29 + 5 

■berhood (P.) ... 149 + 24, 

•vtrn LJ.J 304.+. 4 

•V ilers 181 + 6 

- 6 528 + 13, 

• derson (J. i WIJ 254 ■+ IQ 

if* • “ — 

Huntleigh . 

Johnson Cleaners 

LK Industrial 


ML' Holdings ...... 



000 -Group 

Woolwortb (F. W.) 
De Bears Dfd, ... 
RTZ . - 

94 + R 

95 + 7 
39 + 3 

359.+ S 
107+ 5 
160 + S 
67 + 6 
77 + 3 
674 + 21 
326 + 5 
395 + 3 

Selection’ Trust .402 + 6 

Tasmipex So + 15 

West Driefontein ... £19 + 1 

.1 • FALLS 

Excheq; Si PC 19S1..JE96& — i 
Exeheq, lOJpc 1995..J804 ” 1 

Bellway 60 — 8 

' Matthews Wrtghtson 185 — 3 
Sparrow ((3. .W.) ... 104 — 6 

New Carter curb 
on Federal pay 


committed himself to a fresh 
attempt lo reduce the rate of 
inflation in the U.S. which be 
said has begun to “ imperil our 
economic recovery and threaten 
the strength of the dollar." 

In a major speech, the third 
on the subject since ha took 
office, the President once again 
eschewed statutory wage and 
price controls, but imposed an 
immediate freeze on the pay of 
top Federal officials and said he 
would limit all Federal pay rises 
to no more than 5.5 per cent., 
2 per cent, less than lari year. 

The President prefaced his 
remarks with another strong plea 
to Congress to pass the Energy 
Bill which has now been an 
Capitol Hill for almost exactly a 

- Unless it is passed soon, he 
said, the- Administration will 
have to u limit oil imports under 


Administrative action. One way 
or the other oil imports must be 
reduced " 

Mr. Carter said that the energy 
situation had now become critical 
and “ holders of dollars through- 
out the world have, interpreted 
our failure to act as a sign of 
economic weakness and these 
views have been directly trans- 
lated into a decreasing value of 
our currency.” 

■ At the same lime Mr. Carter 
said he would use his power to 
veto Congressional legislation to 
ensure that the Federal budget 
remains within the $60bn. deficit 
limit that hr set earlier this year. 
He also announced that Mr- 
Rober Strauss, his special trade 

representative, is to be given 

specat additional responsibility 
for combating inflation. 

Mr. Carter said that the 
Continued on Baek Page 


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financial Times. Weto^day AprH Jl-2 1978 

Greek-Turkish talks 
postponed after U.S. 

arms embargo move 


ATHENS, April II, 

THREE-DAY Greek-Turkish talks 
due to open in Ankara next 
Friday have been postponed, at 
least until the dust settles over 
the agitation caused by Presi- 
dent Carters decision to ask 
Congress to lift the U.S. arms 
embargo against Turkey. 

A Government source said that 
the present climate was not con- 
ducive to the talks, originally 
agreed to by the Prime Ministers 
of the two countries during their 
summit meeting in Montreaux, 
Switzerland, last month. 

The meeting, between Mr. 
Byron Theodore poulos. Secre- 
tary General of the Greek 
Foreign Ministry, and his Turkish 
counterpart, Mr. Sukru Elkdag, 
■was to have centred oo the dis- 
putes between Greece and 
Turkey over territorial rights in 
the Aegean Sea. A new date is 
to he fixed through diplomatic 
channels in the near future. 

The feeling in Greece is that 
ending the three-years-old arms 
ban would toughen Turkey's posi- 
tion over Cyprus and in discus- 
sions of Greek-Turkish disputes 
since such a move would 
strengthen Turkey in military 


Foreign diplomats here, how- 
ever. have expressed fears that a 
refusal by Congress to lift the 
embargo would make matters 
worse by vexing Ankara. These 
diplomats speak of a pre-agreed 
arrangement in which, following 
the lifting of the U.S. arms em- 
bargo. Turkey would make rea- 
sonable concessions over the 
Cyprus issue, opening the way 

to its solution and facilitating 
Greece’s return to the military 
wing of NATO. 

The newly-appointed U.S. am- 
bassador to Athens Mr. Robert 
McCloskey to-day called on Mr. 
Constantine Karamanlis the 
Prime Minister, to acquaint him 
with the U.S. Government's views 
on points made by Greece about 
the embargo. 

In another development to-day 
Mr. George Mavros, honorary 
President of the Union of the 
Democratic Centre (EDHKj, has 
left the party to become an inde- 
pendent member of Parliament. 
His decision io leave comes in 
the middle of a power struggle 
within the party. 

Mr. Mavros was appointed 
leader nf the centrist party in 
1374 after the collapse of the 
military junta and the restora- 
tion of democratic rule in 
Greece. He had succeeded Mr. 
George Papandreou who founded 
the party in. the early sixties 
and whn died in 196S. 

The EDHK emerged from the 
1974 General Elections as the 
main opposition party but 
suffered a severe blow in last 
November's elections when it 
saw its scats in the 300-member 
Parliament shrink from 61 to 15. 

After its defeat, Mr. Mavros 
resigned from the party’ leader- 
ship under pressure from lead- 
ing members. In March this year 
Mr. loannis Pesmazoglu and Mr. 
Athanassios CaneHopoulos, two 
prominent economists, also left 
the party to become independent 

Cyprus plot suspects held 


NICOSIA, April U. 

A TOTAL of 22 people — includ- 
ing soldiers and policemen— are 
now in custody in connection 
with the discovery of a con- 
spiracy to overthrow President 
Spyros Kyprianou’s Government. 
Officials say the plot was appar- 
ently financed and encouraged 
from abroad. 

The suspects are held on 
charges of belonging to an 
underground organisation and of 
engaging in subversive activities. 
According to the police, the con- 
spirators planned sabotage 
attacks on Government buildings 
and foreign embassies and 
assassinations of political figures. 

The leader of the group is said 
to be Mr. Bassos Pavlides, who 
is believed to have master- 

minded the kidnapping of Presi- 
dent Kyprianou's officer son 
Achilleas last December, and 
Who had since been free. The 
first four suspects were held 11 
days ago near the British base of 
Dhekelia. Most of the others, 
including the Pavlides and bis 
fiancee, were rounded up at 
Limassol over the week-end, 
while two soldiers were detained 
yesterday. To-day, police 
announced the arrest of an army 
officer. Captain Haralarabos 
Papacleovoulou. and of a police- 
man. They have all been 
remanded in custody. 

President Kyprianou has 
charged that ' *' third parties" 
have been inciting Greek 
Cypriots to resort to anti- 
Govemmfent activities. 

Terrorists shoot guard at Red 


A GUARD from the Turin 
prison holding the Red Bri- 
gade's leaders currently on 
trial, was assassinated by 
urban guerillas to-day. 

Before dying, 31-year-old 
Lorenzo Cotugno seriously 
wounded one of his assailants. 
Security forces holding the 
man hope that be will supply 
important clues on the kid- 
napping of the former Premier. 

While responsibility for to- 

day’s murder has so far not 
been claimed, Sig Cotngno is. 
effectively the third victim of 
terrorists since March 16 when 
Sig. Moro was kidnapped by 
ultraJeft extremists purport- 
ing to belong to the Red 
Brigade’s movement 
The two other victims in- 
cluded the former Christian 
Democrat Mayor of Turin. Sig. 
Giovanni Plceo, and the chair- < 
man of the Genoa Industrialists 
Association, Sig. Felice 

ROME, ; ApraI u, 

Schiavetti, who were both shot 
and wounded. 

To-day’s shooting comes only 
12 hours after the latest com- 
munique from the Red 
Brigades and a farther mes- 
sage apparently written by Sig. 
Moro c laiming that be was 
being “tried” by a “popular 

While the Italian authori- 
ties were maintaining total 
silence on the latest develop-' 
meats of the kidnapping, there 
was wide consensus here that 

Sig. Moro's message, which 
contained an appeal to the Gov- 
ernment to negotiate' with fee * 
terrorists, was written under 
extreme duress, if, indeed, he 
wrote it at all. "s' - ... 

The ruling Christian Demo- 
crat Party to-day reiterated' 
that it would in no way deal* 
with the terrorists' hlaebn^il,' 
and the' Communist' Party 
newspaper, 1 ’Unite, suggested 
that the Red Brigades ' were' 
attempting to force the 
Christian Democrats tok snfr 

render to their demands in 
what Is becoming a gruesome 
psychological war' against the 

The Government and the 
; country’s political forces, for 
their part, are apparently 
intent on ' enforcing the. 
economic and social measures 
;of the commonly agreed pro- 
gramme which . "effectively 
/ended Italy's latest Government 
•" crisis last month- 
c Sig. Glutio Andreotti, tbe- 
- Prime Minister, has called a 

Cabinet meeting later this week 
to approve the first batch 0 r 
measures, including tw 
strengthening - of' the indicia] 
system and provisions for the 
Industrial recovery of 
depressed South. 

Meanwhile, :the wave of p«u. 
tical violence has been high, 
lighted in a Communist Party 
report showing that in the £» 
quarter of this year (here were 
1*220 terrorist attacks, includ- 
ing 900 bombings, 17 murders 
and 227 people Injured. 

in Bonn 



Lambsdorff bid to calm union fears assault 


BONN, April 1L 

renewed on 

BONN, April 11. 
Czechoslovakia pledged to-day to 
pursue the policy of detente and 
announced that their Foreign 
Ministers would hold talks either 
in Bono or Prague at least once 
a year. 

A joint communique issued on 
the second day of an official 
visit by Mr. Gustav Husak, the 
Czechoslovak President, also 
stressed the need for continued 
disarmament moves. It said that 
both countries supported efforts 
to develop contacts between 
their peoples and urged more 
co-operation in the technical and 
cultural fields. 

President Husak and West 
German Chancellor Helmut 
Schmidt said In the 15-page docu- 
ment that the questions of 
detente, disarmament, security 
and co-operation in Europe had 
been the central topic in their 

“ Both sides stressed the 
worldwide importance of detente 
for the development of inter- 
national relations, they are con- 
vinced that no sensible alter- 
native exists to the policy of 
detente,” the communique said. 

Dr. Husak, who has been 
under attack from the West 
German media and parliamentar- 
ians over human rights, said at a 
news conference here that his 
qountry had very few political 

Dr. Husak; on his first visit 
to a NATO country, said that 
these .political prisoners had 
been jailed for violating specific 
laws and not for their views. 
“ In the crisis period of 1968 
and afterwards we triumphed by 
political means and not by 
forceful repression,” he said. 

recent Printers’ and 
workers* industrial disputes. 

Last night, the Minister had 
private talks with Herr Heinz- 
Oskar Vetter, the president of 
the Deutsche Gewerkschaltsbund 
(DGB), the counterpart to the 
British TUC. No details of their 
conversation have been revealed, 
but the two men have agreed to 
meet again i na few weeks. 

The lock-out issue has not only 
inflamed feelings among trade 
unionists, but threatens to 
become one more irritant in measure 

Six urban guerillas went on 
trial yesterday at a heavily 
guarded West Berlin court for 
the kidnapping In February 

four months earlier 
city’s chief justice, 

THE WEST GERMAN Economics that he was speaking for the by both printing and engineer- Government Bundesbank, Em- WT . 

Minister, Count Otto Lambsdorff, Cabinet as a whole, and not only rag employers this year; btifoLv. nloyers and other bodies, .in the TV • DtjFllll - - 

has moved to mend relations for the FDP. when be said over ing some .146,000 . workers- vfe SSSSr of last year ■ . ' 

with the trade union movement the week-end that the Govern- the North Wuerttemberg-North . The unions' ostensible reason . ■RFRrtar Vi 

which have been strained since ment sees no occasion to alter Baden metal-working . industry for walking out was the lawsuit x»aoMiLw, April n. . 

his defence on two recent existing labour legislation, under earlier this month, has: taken launched by Herr Esser’s pre- EAST GERMANY tofday 
occasions of the employers’ right which employers have the right West German trade union&ts- decessor the murdered Dr. launched. Its most sweeping 

to lock-out workers during the to lock workers out as a counter- aback. In its official May Day 'Hanns-Martin Schleyer. against broadside for several months 

■"’■i"**— •• — A metal- declaration, published to-day, the hew workers' co-determma-againstWest Berlln'sllnkswlUi' 

the DGB called for “ an end to .tkm (mitbestimraung) act. In West Germany and the Eunj-. 

the disruption of jobs " and com- addition, the unions are known peau- Community, wanting that 

plained that with mass unem- to have grown weary of a forum improvements in the city’s pok 

ployment, “which could be the in which they felt permanently tion were in danger. 

_ . scourge of democracy. .. anti* 0n the defensive against the An authoritative commentary 

1975 of Herr Peter Lorenz, the reform and reactionary forces appeals of other participants for in the Neues Deutchland Cbm-' 
Christian Democrat leader in have seen their hour come.".; . wage restraint. munist Party' daily newspaper. 

West Berlin, and the murder At the same time as Count In to-day's wage talks in .-Stutt- attacked meetings .nr the city of 

Lambsdorff tries to mend his gart on' a new pay deal foy the West German political parlies, 

fences with the DGB, the new 2J2n\. white- and blue-cot lar recent visits to -the city by senior 

chairman of the West Gehnau workers in the public ^^frvice, state officials from Bond, and a 

_____________ Employers' Federation, Herr the union side expressed!* strong planned trip there by the EEC 

Otto Esser, has said that- he disappointment at the improved Commission president, Mr. fig 
to the strike. The would like to bold: talks with offer from the emplojjfts’ side- Jenkins. . 

relations between the Free Demo- Minister was careful to stress Herr Vetter, with the aim of made up of federal, state and There was no indication why 

crats. of whom Count Lambsdorff that he did not mean to argue relaunching the suspended coil- local government officials. The the commentary had appears 

is a member, and the senior in favour of the lock-out, and certed action conference, Herr offer of 4 per cent plus an -extra at this time; : but diplomat! 

coalition party, the Social conceded that there could be two Vetter, under pressure -from day’s hblidav compared -With the observers suggested it. could b. 

Democrats, many of whom are views about its desirability as a several of his member unions, previous offer of 3.7 per cent, intended to lay down a hard-fine 

close to the unions. weapon. withdrew from these traditional and with union demands of 7.5 position on West Berlin before 

Count Lambsdorff has insisted The mass use of the lock-out round-table talks with the per cent * Mr. Leonid Brezhnev, the Soviet 

President discusses the issue in 
Bonn next month. 

Disagreement on whether Tbe 
city should -be Included --in . 
bilateral agreements has helfrnp* 
the signing, of a series of accords 
between Bonn and both Moscow 
j * and East Berlin. 

NO EUROPEAN solution can be dollar with the announcement of policy within the frameworir tff - movements.! Counter-Inflation . Entitled . disruptive . Wan-, 
provided for the decline of the the U.S. Administration's willing- collective international efforts to policies should- not be sacrificed oeuvres against the four-power 
dollar, according to Dr. Wilfried ness to adopt an intervention stabilise the world 

U.S. measures to stabilise dollar urged 



irid .currency to achieve growth. However, all agreement on West Berlin.” the 
Guth, joint chief executive of the policy and the U.S.-German system. Concerted, efforts, should partners ay the meeting should commentary said that none ol 
Deutsche Bank, West Germany’s agreement The attempt had be made to rebuild the market’s appreciate 1 their, duty to dis- the activities ,it mentioned 
largest commercial bank. The fallen flat because, rightly or confidence in the dollar, and mantle checks on growth and, in could alter the fact that the city 
fate ol the dollar would be wrongly, more had been expected, with this in mind - the particular, to stimulate it was neither a part of West Ger- 
decided in Washington, he said. Dr. Guth, who is one of West strengthened long-term financing througW encouraging private many nor could it be ruled, from 
and a precondition for stabilising Germany's top international of the U.S. payments deficit investment. - . Bonn. ■ • 

the currency would be the bankers, said that a weak dollar should be considered. _This could He,/ appealed for closer These activities "are aimed at 
adoption of a convincing energy was still the prime international take the form of a large, loan currency policy co-operation creating constant new tension 
pollcv, as well as other measures ewmomic problem. It brought in placed in the international within Europe. The French which in- the final analysis can 
important to the restoration of its train many other difficulties, capital markets. . Gofvei-mnenfs election victory only harm West Berlin in parti- 

market confidence. not least of which was the danger Dr. Guth said that the submit and the pound’s return to health cular, . its population ...ami 

The Bonn economic summit, of increased protectionism. should countenance # 'no attempt Abeam that prospects for progress economy,” Neues Deutschland 
planned for. the summer, should The summer summit, he said, to introduce protectnoiist/rdwards European monetary declared. 
bear in mind the failure of the should serve to bind American measures or to control' capita/ -$tion had greatly Improved.- Reuter 
March 13 attempt to stabilise the 1 ' ; • V**'* ' •f < ' • ■ ‘‘ ' •- '<•. 

Empain ' 

1977 was anotner record year for 
Nikko, with operating income and net 
income after taxes being ¥48,856 
million (US$1 84.05 million) and 
¥24,211 million (US$91. 21 million) 
respectively. Net income per share 
increased to ¥30.03, despite the prolonged economic 
recession in Japan and abroad. 

The financial position of Nikko, a leading investment 

banking firm in Japan was further / 
strengthened, and operating efficiency 
improved. As shown in the following 
statement, stockholders’ equity, the 
most important base for Nikko’s future 
growth, increased 18% over last 
year to ¥1 38,294 million (US$520.98 million). 

Annua! dividend has been increased by VI. 00 to , 
¥6.00 per share. i 

Statement of Income J 

Year ended September 30 

yen in Millions 





Interest and dividend income 
Profit on sale of securities 
Gross revenue' 

Operating Expenses 

Selling, general and 
administrative expenses 
Interest expenses 
Gross operating expenses 

Operating Income 

Non-operating income 

Income before extraordinary 

Extraordinary gains (losses) 

Met income before income taxes 
Provisions for income taxes 

Net income 

Balance Sheet Data 7) 

As of September 30 

Yen in Millions 







Current Assets 



Cash on hand and 



in banks 




106,829 ! 

Short-term loans 



Securities owned 



Securities held as collateral' 



Other current assets 



Total current assets 





Fixed Assets 





Total Assets 






Liabilities & Stockholders’ Equity 




Current liabilities 





Long-term liabilities 


• 1 2,368 




Total liabilities 





Stockholders’ Equity 


Common stock 





Capital surplus 




n A nn c 

Earned surplus 




Other stockholders’ equity 





Total stockholders' equity 



Total liabilities and 



. stockholders' equity 



An integrated approach to investment and finance. 




.Head p filer:. j.'?. ; 'rcrt'v' c-: Chvc To 

.Oversea? Representative Offices: Zurich. Pa-"?, Beirut 

Cable: Xij'.O.'i: 

Overseas. Subsidiariesi-The.Nikko Security Co., -fcurope: Ltd.: !.<*-u!co The Nikfco Securities Co., :DcuKt' GmbH-. ":..cktV; 
.Utj^erubj'L-v The S ; ikr.o 'Securities Co. Intern. if iun.ii, foe.: S ••• ' C-r-Mi ' . ^ The Nikko Securities Co. ..Asia; limited.: i-ieng 

n, The Nikko Tuxemhnurj}'; S.A.: 
r. 3 Nikko do Brasil limiudi: 

Oceania Capital 'Corporation I until 

hands over 



Belgian industrialist Baron 
Edouard- Jean Empakt, freed by 
his kidnappers at Easter after a 
two-month abduction, has handed 
over the presidency of bis 
business empire to a close 
colleague. The Empain-Schneider 
group announced in a statement 
that M. Rene Engen, 59, head of 
Schneider since 1972, has taken 
over the presidency for an indefi- 
nite period while the Baron 
recovers from his 63-day kidnap 
ordeal. Reuter reports from 
Paris. Baron Empain , was 
kidnapped by masked gunmen on 
January 23, and held for two 
months, hooded and manacled. 
The tip of his little finger was 
sliced off to send to his family 
as identification. He was released 
on March 26 and last week-end 
flew to London for medical atten- 
tion, after spending a brief spell 
in hospital here 

Austrian banking 

The Austrian Cabinet has 
approved a Bill to reform some 
legislation governing banks. It 
will remove control (already 
handled liberally! upon the foun- 
dation of new branches of banks 
and other credit Institutions. 
Official fixing of interest rates 
payable to depositors would cease, 
but fixing by agreement between 
credit institutions would be 

French GDP rise 

French Gross Domestic Product 
rose 2.2 per cent in 1977 on an 
annual average basis, the National 
Statistics Institute said. The rise 
in Ibe fourth quarter was 2.4 per 
cent. (5.2 per cent in the same 
period of 1976). The growth figure 
has been steadily revised down' 
wards from the 3 per cent given 
in the provisional national 
accounts last September. Reuter 

reports from Paris. 

Defector’s wife threat 

The wile of' Soviet defector 
Valentin Agapov has- said she 
would be prepared to figbt to the 
death for permission to take her 
family to join her husband in 
Sweden. As Mrs. Lyudmila 
Agapova (39), spoke to foreign 
reporters about her campaign to 
emigrate, Soviet doctors were 
working to save the- life of her 
mother-in-law who has attempted 

suicide in a Government office. 

Mrs. Antonina Agapova (68) 
reported by her doctors to be In 

Norwegians warned on deficit 


OSLO, April 1L 

payments gap is going to be ' a 
far tougher, task than the Labour 
Government believed until 
recently. . according to the 
Finance. Minister, Mr. Per 
Kleppe. In a speech to the 
Labour Party’s National Execu- 
tive yesterday, Mr. Kleppe said 
there were limits to how much 
the country could borrow 

He disclosed that the payments 
deficit for -the mainland economy 
alone (excluding borrowings to 
finance shipping and offshore 
investments) was outstripping 

Norway’s earnings from offshore 
oil and gas. In 1977 the main- 
land. deficit was Kr.Sbn. and this 
year it was -expected to reach 
KrJ3bn. — 7 per cent of GNP. 

Estimates of State revenues 
trojan- oil and gas over the. next 
four years had been cut back, 
from Kr. 70im. tQ Kr.50bn. Mr. 
Kleppe' blamed earlier, 
unrealistic estimates on over- 
optimistic production forecasts 
by:' the -private oil companies. 
From now oh his Ministry would 
rely oo more sober forecasts pre- 
pared by the State Oil Director- 

Producers heartened by 
EEC’s coal subsidy 


critical condition, swallowed 
arid in the city's passport admini- 
stration office when officials 
rejected the family’s latest exit 
visa application. 

Kidnappers captured 

Italian police have scored a rare 
success in their war against 
kidnappers, catching two suspects 
as they picked up a ransom of 
L270m. ($317,000) for a 16-year- 
old girl. The police arrested the 
two men after a gun battle in a 
Rome suburb, Reuter reports 
from Rome. 

Fina*c*«l Timm. published dallv went Son- 
daw «M holidays, u.h. autm-nprlun SIMM 

Mir IKishll M6U.IHI lull mull per annum. 
Second ciu> m&tuue mid at Nc» i u«V, N.Y, 

THE EUROPEAN Commission’s 
plan to subsidise European-pro- 
duced power-station coal has met 
with the unanimous approval of 
coal producers from West Ger- 
many, Belgium, France and 
Britain, meeting in Brussels. 

The four members of the Coal 
Producers' Association of the 
European Community (CEPCEO) 
expressed appreciation of the 
Commission's efforts to ensure 
the maintenance of coal produc- 
tion capacity. 

The EEC's plan, which is due 
to be considered by the Counter 
of Ministers soon, is to pay a 
S12 subsidy on each ton of power 
station coal produced, to make it 
competitive with coal from 
South Africa, Australia and 
America. At present, only 3m. 
to 4m. tons are traded across 
European frontiers. And about 
23m. tons are imported each 

The producers' . association 
said that as a result of the com- 
mission's representations, it 
hoped the council would at last 
decide to put into practice the 
energv and coal policies defined 
in 1974, 

' • - jlir: Victor Garland, the 
Australian- minister responsible 
for trade negotiations with the 
European Community, is ex- 
pected in London to-night on the 
first, stage of an EEC tour, 
writes Christopher Parkes. 

. After’ ; talks ' with Common- 
wealth negotiators on the UN 
fond' for financing world buffer 
stocks of key commodities, he 
will- start talking in earnest with 
Connhon Market ' leaders about 
Australia's demands for a better 
trade 7 deal from the EEC. He 
will visit , all the Community 
capitals and will end his tour 
in London, early in May. . 

Hie talks will cover a list of 

Appealing for an early an 
moderate settlement in the cm 
rent, wages and incomes negoiii 
tions, . Mr. Kleppe said it w 
essential to curb domestic cor 
sumption and reduce imports. H< 
warned companies that they xmn 
keep dividend payments to start 
holders “within reasoriabl 
bounds,? otherwise dividend n 
gulation would have to be con 
sidered. Some Government spend 
ing on roads and hospitals Wool* 
have to be postponed, and stat 
support to crisis-hit industrie 
would have to be sharply cur. 

The Bank of Norway has uren 
the Finance Ministry to put : 
drastic, squeeze on lending ty 
the private banks, by introdm 
ing stiff additional reserve rc 
quire me nts and enforcing stric 
liquidity rules. The Comraercia 
Banks Association has concedw 
that the measures are probat) !; 
necessary because lending bu 
boomed over the past five moallu 
far exceeding the limits fixed u 
the Government’s credit guide 
lines. Hey point out, however 
that the moves will only linu 
lending by the private banks 
while the authorities continue ti 
pump money into the econora 
through lending by the Stab 
banks and public spending fie* 

"Credit policy is falling apart* 
the association's director, Sverr 
Walter Rostoft, said in a radi 
interview to-day. Overall ere® 
policy was now more expanse 
than it ever had been. 

25 complaints or representations 
" ' "■ Nine's govern 


presented -to the 
meats last October. ' by 
Garland's predecessor. " ; 

. The' Australian Government is 
coheexued about the loss of .Its 
markets in Europe, and in 
Britans in particular, for grain, 
dairy products and meat It is 
a Tan worried 7 that recent Com- 
munity action to -support the 
European' steam coal and steel 
industry. ;C0uId also affect its 
trade. ' " . 



Reliable and Efficient 


- Tel: DAMMAM 22196 

Metal workers begin 
new wage negotiations 

A new round of collective bargain- 
ing for more than 1.5m. workers 
in four districts of the West 
German metal-processing industry 
began yesterday, AP-DJ reports' 
from Frankfurt. Wage talks 
between the Metal 'Union arid the 
Employers' Federation will be 
resumed in Krefeld for the InL 
workers of North Rhine- West- 
phalia and in Frankfurt for 
another 520,000 workers based in 
Hesse, Rhineland -Palatinate and 
the Saarland. An agreement over 
a 5 per cent wage increase 
appears to be imminent, but there 
are still differences about a lump 
sum payment for the first 
quarter, and income guarantees 
demanded by the Metal Union, 
Collective bargaining was also 
under way on Tuesday for the 
2.2m. workers employed in the 
public services . - ........ 



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Ambitious targets for grain harvests in Soviet Union 

Plant breeders, charged The 1975-80 Five-Year Plan yielfl winter wheat Although hectare to-day. Increases in 17 _3m. hectares or 29 per cent wheat into winter wheat does 
witn aiding Sowet agriculture by calls for grain production to they admit the use of hybridisa- yield to 3S to 40 centners per of total area sown with wheat not involve alteration of chro 
aeveioping high productive reach 235m. tonnes in 1980, an lion in their work. Mr. Vitaii hectare are expected in the near in 1976, is a potentially important mosomal structure through 

CURRY ; . -PAKIB,:Aprfl 1L 

_ • 

5* *w«cal . The employers are also ready 

' “LJESE?* t» ™°ve some ^ way towards the of the Ukranian wheat growing which obtained bet 

.. rt «223r-cr?-- o£ vptumsm to unions, who are generally shell- area, researchers told me they and 1974, when a 
^ moisture^adenNorth 

a eveioping high productive reach 235m. tonnes in 1980, an tion in their work. Mr. Vitaii hectare are expected in the near in 1976, is a potentially important mosomal structure through 

strains of wheat and other grains, unlikely increase of 4lm. tonnes Shebitchenko, Director of the In- future. way of increasing the Soviet environmental influence hut only 

again appear to be placing over last year’s disappointing stitute’s Genetics laboratory. The Soviet Union is now grain harvest. classical hybridisation and select 

reliance on the discredited grain harvest which suffered said that Mironovka researches engaged in a hroad attempt to The long-term prospects of tion in a changed environment, 

theories of the late Soviet agro- from major shortfalls in the rely • primarily on “variation expand the area planted with improving the important culti- Any crediting of the result to 

nomist Trofim Lysenko. spring wheat areas of Kazakhstan through influence ” — a concept winter wheat, which means, in vation of winter wheat, however, “ behaviour ** is merely a simple 

When I recently visited the and Siberia. Western agronomists reject the first instance, breeding appear dubious if the research attempt to give the work a 

Mironovka institute for seed Realising this ambitious target The work at Mironovka is varieties of high-yield winter e ff ort as a whole is understood Uysenkoite appearance, 
selection and wheat breeding, 60 will depend on favourable important for the Soviet Union, wheat vritt greater resistance to , n the light of the scientifically nr Medvedev a former Soviet 

""I** south of Kiev, in the heart elimatic conditions like those *n»e Institute u a major research cold so they can be planted m discredited theories used to biolokSt now li^ie ^ London 

Rro Y' nR which obtained between 1960 - explain the work at Mironovka. said that Lysenkoism continues 

area, researchers told me they and 1974, when a stream of' — — ’ Mr. Shebitchenko said that < 0 be a potent force in Soviet 

are attempting to change the moisture-laden North Atlantic air r w i- . extreme cold produces changes nhm» w a ..=i» 


□ t su^Tn «w W“ Mr. Lysenko held thatienviron- growing, incoming mecoamsa- ~ ~ wmcn. ne acraowieogea w- put to death as many adherents 

B - nv ® 3 ™ ent - • to convert into pesmanent em- mental influence was -the most lion, fertilisation, and the * eluded some use of hybridisation of classical genetics had been in 

"m toe same tame, jt warns .that Pjoymeot 4he.-tbousaads . of lem- important factor in determining development of higb-yjeld seed at various stages in the develop- the 1930s. 

nvestmeat could be ■ knitted -by poraxy jobs created .over the last heredity and he won Stalin’s varieties like those bred at centre with a staff or $40 and 14 the colder spring wheat areas of raent of high-yield seed, it is „ Q . ... . . 

Iphfu, he P 00 * financial candiUon of alae .nwntfc? to absbflb youth favour because his views were Mirenovka. laboratories, it takes up 5.000 Kazakhstan and Siberia. now possible to change the 

v U£\Yk«njpanfcs with heavier social unemploymem. compatible with Socialist notions The Mironovka institute has acres. It Is given credit by Mr. The advantages for the Soriels character of phnts in as tittie 

v « . "iparges andpoor levels of profit- • of the perfeclahilily of man. developed three types of winter Leonid Brezhnev, the Soviet of expanding winter wheat culti- as one year. The Institute's g “J- « ttwnM ion rae 

W "S* 1 * • These ideas ruined Soviet wheat seed which are in wide use President, with providing l.Sbn. vation are considerable. In 1976. methods have not been offered ® S 

V f WaJ The. new Govermnent’s policy UltiWUl race . genetics for more than a genera- in the Ukraine to-day. roubles (£l.2bn.) of extra the average yield per hectare of for international scientific scru- J 0 * aoes not maner u 

• Ainpwardfi industry is eagerly -President Giscafd ■■d'Estaine tion. Lysenko’s idea that natural lo their most important revenue to the Slate, and owing winter wheat was 25.9 centners, tiny but will be shown to foreign we nave a 11111 raDie - 

\ waited. 1 M. Raymond -Barre. the himself ha^ met one rf the Pat mutation has a direction from the achievement, researchers at the in part to the Institute’s work more than double the average geneticists soon, he said. The Soviet Union now spends 

•- w — ■ - - ■ start and corresponds to changes institute, which is headed by winter wheat yields in the yield per hectare of spring . The question of Soviet research over three tunes more on plant 

“Jr-t faadual return to freedom of at^aarowth ii^the environment now under- Vassily N. Remeslo, a disciple of Ukraine, the Soviet Union’s wheat at 12.4 centners. Since methods in genetics remain research than the U.S. Bui: the 

-Prices, an effort to restore cor- rate moerfor id tbe'iaveraee of lies research at the Mironovka Mr. Lysenko’s, claim that they most important winter wheat the total area which -can be troubling ones— both scientific- continuing survival of Lysenko’s 

;J orate finances (including her induswtal conmetitore— institute with disturbing implies- have been able to alter 1 he area, have increased steadily planted with wheat cannot be ally and politically. . Dr. Zhores ideas and theories inevitably 

•' 'erhaips fiscal concessions for sub- w»mpthin^ emDlovers]^ard as tions for Soviet agricultural chromosomal structure or spring from 15.9 centners (about increased in the Soviet Union. Medvedev argued in his book, raises questions as to whether 

' - - cribereto hew comnanv canitah tnJSHtS +h#? voun P research and future wheat pro- wheat by exposing it to extreme 17 cwtl per hectare ’in the tipping the balance toward “The Rise and Fall of T. D. it is all being spent to maximum 

duction cold and converting it into high-' late 1950s to 35 centners per winter wheat, which took up Lysenko ” that changing spring effect. 

-~.v. 1 aeon rage investment,, are in- market. It is also thought there 
.7 ." •.®EJ?; ec *' ... may be a compromise over the 

V : '-4. ' 'Die Prime Minister to-morrow demand by some onions for. five 
— ; '44.iegiiis a round of discussions weeks’ holiday a year Instead of MORE POWER for Parliament 
- . 1^- I^tii trade union leaders. He has lour, particularly, .as the to intervene in proposed EEC 
r -~ {ried to meet some of their de- moderate- 'leader, . M. Andre legislation before decisions have 
-^zaodshyjiledginff that Dhe lowest Bergeron, who has.tatt Ms links been taken in Brussels ^ urged 
■‘•>4 . aeomes will receive special con- open . to the Government, has M R 

• i-f. ideration in the context -of con- staked his personal prestige on yesterday by Mr. Bnan Go . 
j^lnued wage controls. the demand. ; Labour MP for Southampton and 

Call for EEC parliamentary power 


Giscard under pressure 


PARIS, April 1L 

Labour MP for Southampton and 

a member of the House of Com- tfce House w power1ess t0 , n . 
mons European Scrutiny Com- terTene a C ter had picked out 
mittee. those Brussels proposals which 

Speaking on the second day needed debate. “ It is at this 
of the Financial Times confer- fjf 1 procedures rcar deaiing 
ence in London on business and d°“ 

the EEC directives chaired by ^‘Smmitlce has ^ power 
Lord Mais of Walbrook he said lQ up ] e2 j S i a tion by recoin - 

rssa« wss 

ttStSbfiBP workina *l*SZl~oL “ 

__ ... wen in a uuuiea unei, seemed 

' ’" ^-'-.RESIDENT Giscard d'Estaing The fortunes of the Lper cent He attacked the Government But the Committee which met 
'• '1 ' likelv to come under early of wealthiefe hodsehoHs grew for misunderstanding the nature weekly was dealing promptly 

Jurajy. to conns o. bT il 8 pef^fct-'annuaSy during of European legislation. Parlia- and efficiently with its limited 

.:\,rassure to carry out Ms- promise tilis p e ^od labile those of the mem s have not developed effec- task. It hod recently begun to 
’ - ~. 2 ) create a more egalitarian jq pg- r cen t. (of poorest house- live procedures for approving or make greater use of its ability 
: Z-:£ >dety following tile publication holds grew bypnly 73"per cent disapproving proposed EEC laws, to take evidence from ministers, 

a report, showing that the Broken dowS by social cate- “if the House of Commons servants ? nd ou i side , bodiea - 

Business and 
the European 

T| • a The United Nations' report 

filamentary power 

Michael Rensball a partner in the 
London accountancy firm Feat, 
Marwick and Mitchell said. 

the committee’s work was done the instrument should be “ "JJ® ““JSSK? - 
in private session. debated by the House. % 

The committee usually started The debate had taken place in t0 desi b e chan * e ’ 

work on an EEC instrument as j une> 1976< th e instrument had The accountine model oro- 

' with m bC -“ br0Uebt b -? Ck 1 i^ the C ° m ‘ W«2i pSticuffiy on non-fiSS: 
Commission. It dealt witn an nnnee in April. 1977, accom- c i al information was far ahead 
average of 5o Community pro- panied by a new memo of ex . JUU ^oraation was 

posals each month, after clearing pi anation supplied by the S th?wSi 8 Q “ 

the initial backlog. Department of Trade. The com- rrv , 

The Government department m igeehadaeainreDorted to the ^ £k ? erent treatments of 
within whose responsibility the giule. but tSs time had not £° U P fnd parent accounts was 
instrument fell, provided a recotnmended a further debate ^- raaj ° r between the 

memorandum explaining the re Z; e etl a rortiwp dMa». U.K. and continental accounting 
legal and police implications of Comply accounts should be procedures, Mr. Ken Gardner, the 
a proposal, and this was sup- pre * ent ® d . m a different way to Dunlop finance director said, 
plemented by an advisory brief Sro up .statements was recom- Accountants should press for 
oreoared by one of the com- “ended by Itt. Bertrand oTUiers, group accounts throughout the 
mittee’s full-time staff of a clerk. £hief accountant to the Pans EEC, he added. Discussing Dun- 
a legal adviser and four Commission des Operations de lop’s experiences since it merged 

The different treatments of 

- ’« wealth gap' between the- rich and gories, the weatth increase 
: :.hor in France has increased highest for inaustrlaBsts, 
aarply over the last 25 years, traders 'and m&mbera^ of 
The report drawn up by the : liberal professio is— nearly 
. : . l- '- '-ational Institute of Statistics per cent- per- yeit— whiie 
..'.‘.'takes It clear that the wealth of workers and simAb emph 
‘ "apis even greater than between rose by only 6 per chat... 

r . ie highest and lowest incomes The report points odttha 

’ -T hich, according to previous high rate of inflatlommvej 

’ . u dies, is one of -the largest in past has-merely aecantwtei 

• ';-rte : western Industrialised world, discrepancies. .Propertyw? 
1 - - Between 1949 and . 1975, the and: people with capital tat 
“-Verage wealtii of- ftench house- have benefited fatal A 
-voids was multiplied by 13 in capital gains, whereas «Jax 
- -. -instant francs, an increase, of -creases have not -comppn 
■ ore than 10 .per cent, per year, for the still higher rises hak 

;• t, ■ ut it was the 'wealthiest section and interest .rates., for 1 

'■ society which benefited most savings have failed' to keep' 
om this growth. “ with inflation. ' 

T S a^ng upon a report from the T^\^ 1 S l1 ^® 1 ^^il e ; elopment 
big Scrutiny Committee were able 10 and should be extended. 

be ?5_ ^ debate proposals on a substantive ™ T - 

specialist advisers. 


with Pirelli, the Italian tyre 

After each meeting, the com- European accounting standards manufacturer, in the early sevec- 
mittee’s decisions were collated should aim to be good and ties Mr. Gardner said be had 
and presented to the House with effective rather than the best in learned a great deal from Italian 

LJririi*' th^t motl0n which allowed them to legislation bn the same bills. report. • mg salient features of the EEC accounting problems at the time 

BhSilbvees “ y ?®* °- r "? to a pa S cl i ar p ^ fhoting as less important domes- Other U.K. scrutiny The committee reserved the fourth directive on company of the merger concerned the 
Hfe employ es posal, ministers would then be ^ -Tj/g is that mechanisms included the House right to take a second or third accounts. In the EEC company treatment of depreciation, tax 

that the 2 LJh Slv dimnii European legislation is a form of Lords committee set up in look at any instrument before accounts should be subject to and stock valuation. 

Ion\>ver the .. d « . . fv ■ of superior legislation which April, 1974. which bad a larger adoption by the CouncU. , legalistic regulations but group The international Accounting 

MnAted the tbey went takes priority over Acts of membership and wider terms of An example of this “second accounts should be freed from Standards. Committee should, 

oert^ov.’uers t0 Brusse **». said- Parliament The House of reference. stage” scrutiny could be found such constraints and liable to work towards producing a 

dStJfcnvest „ Limited changes only to the Commons has not yet developed The Commons Scrutiny Com - in the treatment of the Fourth international standards. 

fnomXlaree Commons procedures were procedures which take account of mittee had all the powers of Directive. The committee bad The fourth directive had few by 1981 Mr. Douglas Morpeth, 

Asia*, in- necessary to effect this solution, ^lis." select committees to send for first considered a version in -definitions of concepts and chairman of the inflation 

There would be no conflict with Dismissing the European persons, papers and records. It March. 1974. It had relied largely lacked a precise dictionary. accounting steering group said, 

the Treaty of Rome. . Assembly as an essentially also .had, exceptionally, the on minutes of evidence taken “The experience of the French The Brussels Commission could 

The Commons Scrutiny Com- deliberative body, he said that power? to hold meetings con- and written statements supplied standardisation pro^s 

mittee, set. tip on May 1974 with Parliament was better placed in currently with counterparts in to the Lords committee and had shows that that lend of defect is accmjmjng standard within th® 

Government for putting Euro- legislation than with domestic explanatory paragraphs in a abstract, he added after analys- accounting techniques. 

report. * ing salient features of the EEC accounting problems at the time 

The committee reserved the fourth directive on company of the merger concerned the 

S&[ mittee, set. up on May 1974 with Parliament was better placed in currently with counterparts in to the Lords committee ana naa Shows mat mat Kina 
18 .members from both sides' of many ways to deal with EEC the House of Lords. Much of recommended in July, .1975, that not .a mortal sin.. 

necessary time span. 

rirl AH lip 

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Israel begins withdrawal ofl 

troops from south Lebanon 


ISRAEL TO-DAY began a partial 
pull-back oC some of its forces 
which invaded south Lebanon a 
month ago. The evacuated posi- 
tions were taken over by UN 
peace keeping troops. 

The limited withdrawals are a 
response to Western pressure 
and an attempt to forestall an- 
other UN Security Council 
meeting being called to protest 
against Israel’s failure to with- 
draw as ordered by the Council 
last month. 

The pull-back is also aimed at 
easing the way for a return 
visit to Cairo by Mr. Ezer Weiz- 
man, the Defence Minister. How- 
ever, Mr. Sfordechai Zipper i, 
the Deputy Defence Minister said 
last night that contrary to earlier 
reports Mr. Weizman is not due 
to go to Egypt in the coming 

Israeli troops to-day withdrew 
2 to 7 kms. from the ceasefire 
lines in the eastern sector of 
south Lebanon. On Friday 
Israeli troops will puli back 5 
to 6 kms. along an 11 km. 

stretch of the Litani .River In the 
central sector. 

After these (two stages are 
completed, Israel will still be 
in control of. the bulk of the 
area occupied a month ago in 
the biggest military operation in 
the region since the 1873- war. 

The Israeli invasion was aimed 
at destroying Palestinian bases 
and pushing the Palestinian 
forces away from the northern 

Further withdrawals are 
dependent upon the UN Interim 
Force in Lebanon (UNIFIL) 
reaching its planned strength of 
4.000 men. Currently it is less 
than half that number. Israel 
is insisting that tbe UN troops 
be present in sufficient strength 
to be able to prevent Palestinian 
units from re-entering the 
evacuated area. 

The UN Command has under- 
taken to block any attempts to 
enter the area by Palestinian 
forces, but the Christian villagers 
in South Lebanon have protested 
against the Israeli withdrawal 

TEL AVIV, April 21. 

The villagers claim that the UN 
does not have the -strength or 
the will to stop a guerilla force. 

Ihsan Hitazi adds from Beirut : 
Encouraged by the Israeli pull- 
back the Lebanese Government 
to-day launched the first stage 
of a plan for repatriating some 
200.000 Lebanese refugees who 
had fled from the south during 
the Israeli attack. 

Tbe first convoy of 20 families 
left here this rooming for Tyre 
and outlying villages. Other con- 
voys were to follow. 

But these hopeful signs have 
been clouded by complications 
in the overall Lebanese situation. 
Tension reigned for the third day 
running between two suburbs at 
the southeast end of the Lebanese 
capital. Tbe dividing line between 
the predominantly Christian 
quarter of Bin El Rummaneh and 
the predominantly Moslem 
quarter of Cbpyah was to-day 
beavity guared by the mainly 
Syrian ' Arab - Peace-Keeping 
Force after three days of clashes 
between rival factions which left 
seven dead and 27 wounded. 

‘MiGs bomb 


ERITREAN rebels said that MiG 
jets were dropping napalm and 
cluster bombs on villages near 
Asmara and Massawa apparently 
in preparation for an Ethiopian 
offensive in the country’s 
northernmost province, Reuter 
reports from Rome. 

“ Their strategy first of all is 
to retake the road between the 
capital. Asmara, and the port of 
Massawa," Mr. Gabray Tsegbai of 
the Eritrean People's Liberation 
Front (EPLF1 said. “This Is 
their most important supply 

EPLF insurgents gained con- 
trol of the road between the two 
cities, which they had besieged 
in battles last year. 

Aborigine plan 


8y Kenneth Randall 

CANBERRA, April 11. 
Government has dropped plans 
to remove two aboriginal com- 
munities in North Queensland 
from the jurisdiction of the 
Queensland State Government 
A compromise in the long-run- 
ning dispute between tbe two 
Governments was announced 
shortly after midnight 
The main plank of the agree- 
ment transforms the former 
aboriginal reserve land at 
Aurukun and Mornington Island 
into local government areas with 
a local council like any other 
surh area in the State. 

Tn effect, this means that the 
two communities have been 
moved from the control of 
Queensland's aboriginal laws to 
the jurisdiction of the Local 
Government Act. which leave 
final authority on many issues, 
including mineral rights, with the 
State Government 

Japan rail workers 
turn down pay offers 


workers' unions have rejected a 
4.9 per cent pay rise offer and 
may now proceed with strikes 
planned for late April <to win a 
settlement more in line with the 
15 per cent, they are -asking. 

Meanwhile the Federation of 
Iron and Steel Workers Unions 
(Tekkororen) will respond on 
Wednesday to the joint 4.7 per 
cent pay offer from Japan's top 
five steelmakers. Observers 
believe mat although Tekkororen 
will turn down the offer, manage- 
ment and labour look set to 
compromise on a 5 per cent, wage 
increase this year. The figure 
has been mentioned as an 
** absolute minimum ” demand in 
union handouts. although 
Tekkororen, nevertheless, is ask- 
ing for a 12 per cent, average 

Japan's 210,000-member Union 
of Private Railway Workers 
tShivlsusoren) has rejected an 
average 4.5 per cent pay rise 
from the rail companies. 
Members of Shitetsrusoren will 

TOKYO, April 11. 

vote by mail in coming days on 
a 24-hour walk-out proposed for 
April 23 and a 72-hour strike 
starting on April 25. Unless a 
settlement is readied by then, 
the moves could disrupt transport 
in Tokyo and Osaka where 
private railway lines carry 
millions of passengers each day. 

Itoilway workers thus emerge 
as the most radical proponents 
of iarge pay rises at a time when 
the traditionally hard-hitting 
unions (for example iron and 
steelworkers) are putting up 
little resistance to wage increases 
on ; uughly the same scale as 
offered to the railway workers. 

Mana eminent at Japan’s nine 
major private railways put their 
concerted pay plan to 
Shitetsusoren on Monday, calling 
for an across-the-board rise of 
Y6.700. Because of existing pay 
differentials between union and 
non-union workers the increment 
represents a 4.9 per cent rise 
in union pay but only a 4.1 per 
cent overall rise. 

Common Fund meeting 


ABOUT 20 ministers from Com- 
monwealth: countries gather in 
London on Thursday for a two- 
day meeting to advance nego- 
tiations on the setting up of the 
proposed Common Fund to 
stabilise commodity prices. 

The meeting is potentially an 
important one in that it falls 
between ■ the collapse of the 
round of talks between develop: 
ing and Industrialised nations h) 
Geneva last November and 
attempts to revive the discussions 
that are now under way. 

Mr. Shridath RamphaL the 
Commonwealth Secretary-Gen- 
eral said at a Press conference 
yesterday that the meeting came 
at a time when there was “ great 
anxiety" over the kind of -log 

jam that seemed to have 
developed in the North-South 

Apart from assessing the pre- 
sent progress of negotiations 
over the Common Fund Common- 
wealth Ministers, representing a 
broad range of producer and 
consumer countries, will be pre- 
occupied with two main issues. 
The first is to explore means of 
financing the buffer stock facility 
through a combination of depo- 
sits made by commodity organisa- 
tions and direct subscriptions 
from Government. 

The second is to press for the 
inclusion in the fund of a second 
window to finance bother measures 
of interest to poorer developing 


A giant task in intense beat 


WORK ON the'Jongiei Canal in 
southern Sudan, the first phase, 
in an attempt to control the 
mighty Nile along its full 
length, is falling far behind 
schedule. Soon it could be 
halted for months by tbe very 
waters the canal is designed to 
hold back for good. 

Digging the 200 mile canal 
with a giant bucket wheel was 
supposed to have begun in 
March but mechanical problems, 
transport difficulties, and the 
sheer physical effect of the in- 
tense heat on men and equip- 
ment, have put the S200m. pro- 
ject far behind schedule. The 
35 feet diameter wheel was pre- 
viously used on a similar canal 
project in Pakistan. Last year 
it was sent in pieces by sea, land 
and river barge to Malakal, 450 
miles south of Khartoum where 
the canal is to flow into the 
White Nile at Its junction with 
tbe river So bat, having begun 
its course at Bor. But moving 
parts, particularly for the huge 
diesel engines, had not been 
properly prepared for the jour- 
ney. They arrived rusted or 
broken, and required replace- 

The bucket wheel digs 
beneath this surface and, once 
established on course, can pro- 
ceed with the task of removing' 
lm. cubic yards of earth in IS 
months, moving the canal for- 
ward at the rate of a kilometre a 
day. But a start must be made 
before the end of April if 
further delays are 'to be avoided. 

One possible solution is to 
divert tbe supply ship to Mom- 
basa, Kenya’s Indian Ocean port, 
a week's sailing to tbe south. 
But the only road into Sudan - 
that is passable for heaw lorries 
runs through Uganda. Recently, 
loads destined for Sudan have 
been hijacked by Id! Amin’s 
troops, their main targets being 
petrol or food loads. 

The inaccessibility of tbe site 
added to the difficulties. A traffic 
jam of shipping at Port Sudan on 
the Red Sea— Sudan's only sea- 
port— causes delay in bringing in 
the heavy parts. When eventually 
they do arrive at the dock, they 
have to be taken by lorry over 
700 miles of desert and 
corrugated earth roads before 
being brought the remaining 300 
miles to Malakal. It can take sis: 
mouths for supplies from Europe 
to arrive at the Jonglei site if 
they are too heavy to be brought 
by air. 

These delays will not improve 

morale at the site where, in blaz- 
ing heat, remote from everyday 
comforts, an international team 
of French, British, German and 
Pakinstaiu engineers have been 
working to assemble the 
machinery. Their water is puri- 
fied locauy. though diseases— 
dysentery, hepatitis and malaria 
— take their toll. All food aDd 
other everyday needs are flown in 

• - Aswan* 

UGV\ : E Y 

by light plane from Khartoum. 

It bad been hoped to begin 
excavation at least three months 
before tbe start of the annual 
rains in June. These and the 
flooding of the White Nile 
between then and October, turn 
the hard black soil into a morass 
of glutinous mud in which most 
activity is impossible. 

Sudan's long term planning 
involves bringing into cultiva- 
tion or livestock grazing 200m. 
acres of land, of which a mere 
17m. is now in use. Vast sums 
of Arab and international aid 
and investment is being poured 
into the country in thehope that 
Sudan will one day provide food 
for much of the Third World. 

The area to the east of the 
canal has never before had con- 
sistent water supplies, though 
its soil is rich in potential. To 
the west the great Sudd swamps 
are_ usually too flooded to be of 
agricultural use, and moreover 
each year l5bn. cubic metres 
of water are lost there from 
evaporation. The canal is to 
help drain the swamps and 
reduce that loss, making more 
water available for the area east 
of the .river and for Egypt down- 

The annual yield of the Nile 
is S4bm cubic metres, of which 
another lObn. arc lost by evapor- 

ation from the waters dammed 
up at Aswan. Under present 
agreements Egypt takes about 
75 per cent, of the Nile Waters, 
and Sudan 25 per cent. 

The ultimate aim of both coun- 
tries — though more impetus 
comes from Egypt which depends 
solely on the Nile to feed a 
rapidly multiplying population — 
is to control the entire river. The 
second phase of the scheme is 
to dam and regulate the outflow 
from the sources of the Nile, the 
great Eqatorial lakes of Easl 
Africa. That would need the 
co-operation or several States 
that are not always in agreement 
with each other. Kenya, Uganda 
and Tanzania, for instance. But 
a series of talks recently held in 
Cairo did move some way to- 
wards a possible long-term Pan- 
African deal on the Nile. 

Meanwhile, hopes are pinned 
on Jonglei. which will provide 
4_7bn_ cubic metres a year (half 
each for Egypt and Sudan) by 
diverting some 20 per-cent, of 
the White Nile before it eoters 
the Sudd swamps. That will 
bring economic benefit to Sudan 
worth about $75 m. a year (the 
estimate comes from a successful 
Irrigation shoe me in the north). 
It will also cut 300 kms. off the 
arduous river journey from 
Khartoum to Juba, capital of 
southern Sudan, and provide as 
spin-off a hard all-weather road 
along its banks. 

Jonglei has its opponents, 
notably Friends of the Earth and 
other conservationist groups. 
Their case rests on the uncertain 
environmental effects on the 
swamps and local wildlife and 
on the tribes which live In the 
canal area, notably the nomadic 
Dinka. Bilt the Dinka, led by 
government propaganda and 
fieldwork among their villages, 
see the canal as being to their 
advantage. Bad flooding in the 
early 1960s caused a change in 
traditional tribal economics— 
away from the simple owner- 
ship of cattle, important socially 
though that still remains. Many 
Dinka now want to plant food 
crops and improve their Living 
standards with the money that 
would bring. To do so they need 
reliable water supplies for 

As for the wildlife, a Sudanese 
cabinet minister summed up the 
official attitude to the problem 
recently in Khartoum: “If Its a 
question of who survives, the 
animals or the people, the people 
will come first” 

Students in Peking 



in China’s 



month literally face a testing 
time. For the first time since a 
student named Chang Tieb 
Sheng was made a hero for 
turning in a blank answer sheet 
in school examinations during 
the Cultural Revolution, stiff 
entrance examinations are again 
to be introduced. No longer will 
Peking University. China's 
highest seat of learning, admit 
students whose sole qualifica- 
tions amount to a stint in a 
factory or commune and the 
recommendation of the Com- 

munist Party. 


Later this month the first 
entrance examinations will be 

PEKING, April 11. 
Commission has recommended 
“a widespread straightening 
out of army organisation and 
discipline” Renter reports 
from Peking. 

Military observers here said 
to-day this suggested that a 
laxness of discipline might have 
entered army routine during 
the period of extremist domi- 

The stress on tighter organi- 
sation and discipline appeared 
In an article in the People’s 
Daily, organ of the Communist 
Party, and was also carried by 
the New China News ,\gency 
(NCNA). Th* Military Com- 
mission is an executive body 
of the Party Central Com- 
mittee. • 

held for aspiring under- 
graduates for tbe next term of 
four-year courses beginning In 
July. They will he students who 
have just completed secondary 
education and few are. expected 
by the university authorities to 
have ever worked in factories 
or communes. 

The change was decided in 
last month's Fifth People's Con- 
gress which initiated reforms by 
the successor to the laid Chair* 
man . Mao Tse-tung. Chairman 

Hua. Peking University's dons 
change and 

are relieved by the 
claim they went through agony 
in the past few years when 
directives Trom the now ousted 
“ Gang of Four " threw out 
established traditions. ' As pari 
of the new arrangements, two 
more changes are to he made. 
Peking University will have 
post-graduate courses again .for 
the first time since they were 
abolished as being unnecessary 
during the Cultural Revolution. 
[Preparations for teaching of 
post-graduate students began 
last year, but actual enrolment 
wiU begin in the 'summer for 
courses in Natural Sciences, 
Biology. Mathematics ; and 
Philosophy. * 

The handful r»r uost-gTa Quotes 
and the subjects they can, study 
will gradually increase. I The 
problems are enrmnousi since 
many textbooks were destroyed 
during the Cultural Revolution 
and have either to be {traced 
from places where the dfns hid 
them or to be prepared /afresh. 
Eventually, the University 
authorities hope that tof the 
10,000 students who will be on 
the rolls within three clears, at 
least one-third will be post- 
graduates. J 

The second major change :s 

that Peking Universit: , which 
sprawls over a campt s of 40 
hectares in the westen part of 
the Chinese capital, wfll admit 
non-resident students -for the 
first time. The first 200 will join 
from the term beginning next 
summer, thus fulfilling file Fifth 
Congress's directive that enrol- 
ment of university students must 

be expanded quickly., ^Univer- 

sities are being asked /to train 
scientists of all kinds and the 
emphasis in Peking is to be on 
practical subjects. 

Yet ideology Is far from for- 
gotten. The university authori- 
ties say the principles behind the 
new reform* are: find, to train 
more students speedily; second, 
to make enrolments strictly _ on 
■the basis of u uniform qualify- 
ing examination; and. third, to 
enrol students on merit and not 
merely because they, have spent 
at least two veaiti in factories 
as has been the basis for entry 
for many years. The university 
authorities have gone so Far in 
their search for talented 
scholars that students who 
show special merit in schools 
will be admitted before they 
complete secondary, school edu- 
cation. At least 10 per cent, of 
the new students will be in the 
age group of 10 to 16 in what is 
roughly translated as a special 
class for young prodigies. 

But all must be "good politi- 
cally and have Socialist con- 
sciousness" say the authorities 
even though teaching of science 
and technology is to be restored. 

®tancial Times Wednesday April 12 1973 



tax cut, bp§tadu!stiy boosted ft 


Canadian Finance Minister, pro- 
posed a reduction of sales taxes 
in his budget for 197S-79, as well 
as increased incentives for 
research and development in in- 
dustry, and for a more intensive 
exploitation of ' Canadian oil 

The reductions to the sales tax 
are expected to produce a bene- 
fit to consumers of at most SLlbn. 
(about £470m.), giving the budget 
a fairly restrained character even 
though the Liberal Government 
of Mr. Pierre EUiott Trudeau 
faces elections — perhaps as 
early as June. -Its economic man- 
agement has come under fire, 
especially since the Canadian 
dollar began to slide almost IS 
months ago. On that matter Mr. 
Chretien restated tbe accepted 
policy that the exchange rate 
must move in response to the 
market, but that short-term 
fluctuations should be moderated 
by official intervention. 

Sales tax is to be cut by 3 per 
cent, for at least six mouths, 
except in Alberta and the North 
West Territories which levy no 
sales tax ; and in Quebec which 

sets ite own rates. Mr, Chretien retail sales taxes— -imposed by 
has offered the provinces at- least the provinces the Government 
partial compensation for the loss offered tax-transfer compensation 
of revenue from this cut Quebec to bring about a six month 
has undertaken to consider the redaction in provincial rates. . 
offer and to decide within a few. _ ,The Budget made the following 
. ' - . •’ Social changes: . 

Thus was the only tax cut .the • Retirement income options are 
Finance Minister announced^ hhiijg enlarged, for holders of the 
his pre-election budget Registered Retirement Savings 

Mr. Trudeau has warned that Flans (essentially a tax shelter 
if the opposition persists in for personal savings to be . kept 
making political capital but of, until retirement age), : which 
the budget debate, due to start' Ottawa introduced several years 
to-morrow, he may recommend ago Previously the owner of an. 
dissolution, of Parliament .this RRSP could only withdraw his 
week and. go to the country. ■_ if money wben.he. reached 7 1 - ot 
he does not. call the- election 4qr . convert it Into an. annuity. 

June 12, he is expected to choose • Existing tax-free transfer jjro- 
June za.'with dissolution taktflg- visions for family farms -are 
place next week. ■ , widened to include incorporated 

The' minister had tiffin, family farms, 
room to manoeuvre however, not # Board and lodging benefits 
daring to introduce big cut- in become tax-free - for single , per- 
personal income taxes or cor- sons employed at remote wdrk 
porate taxes for fear of .bring- sites, a provision ■ formerly 
Ing on greater inflation, .and limited to those with -married or 
again undermining the value of ‘equivalent status. - * - 
the Canadian dollar in interna? # Income Tax Act revisions will 
tional markets, where the dollar facilitate the introduction of new 
is already weak. . provincial family reform laws. 

The federal sales tax, imposed - Mr. Chretien’s Budget , offered 
at the manufacturer’s level, industrial growth incentives in 
remained unchanged. But In three major areas: research-and 

.Ottawa; April u; 

development, energy, and rail, 
ways. ., ** 

Mr. Chretien offered a specific 
incentive to industry -to increase 
^search 'and development costs. 
.Which already, qualifies for an 
i mmed iate! tax- writeoff and in- 
vestment credit. Under tho 
budget , proposals, half of mere- 
mental research and develop- 
ment costs - may in addition be 
deducted from .income. 

. Budgetary revenues after the 
new measures are forecast at 
$C36bn. This is based on an 
itoierease in the gross national 
product . of : u pet ‘cent in 
current dollar terms. About 6 
per cent of this would be due 
to priee changes and close to 5 
per cent to .seal growth. 

Budgetary spending on non- 
budgetary loans Is projected at 
$C48.45bn n a ‘ reduction - of 
SC350m. fronj the main spending 
estimates for the year, tabled iu 
February. The reduction reflects 
a decision by the Government to 
reduce tbe- ceiling on expendi- 
tures by that amount 

Total financial. requirement of 
the Government in 1978-75 will 
be about SLL5bn. exclusive of 
foreign exchange transactions. 




Exxon to sue 

Gulf over 


By Stewart Fleming 

NEW YORK, April 11. 
EXXON, the largest oil company 
in the world, is bringing a multi- 
million dollar suit against Gulf 
Oil and its associate, General 
Atomic, alleging illegal activities, 
including participation in an 
international uranium cartel. 

Tbe suit arises out of 
contract between Exxon and 
Gulf signed in May, 1973, under 
which Exxon's nuclear unit was 
to supply 6m. lbs of uranium to 
Gulf, from January. 1979, and 
on into 1984. Gulf assigned the 
contract to General Atomic — a 
partnership between Gulf and a 
division of Royal Dutch-ShelL 

The litigation between Gulf 
and Exxon is the latest in a 
series of suits stemming from 
alleged participation by Gulf in 
an international uranium cartel. 
Early last month. General 
Atomic was hit by a default 
judgment in a New Mexico court 
after unsuccessful attempts by 
United Nuclear (another U.S. 
company in the uranium supply 
business) to force it to provide 
information about the uranium 
cartel. Tbe information is held 
in the files of a Gulf subadiary 
in Canada. . _ „ _ 

The judgment had the effect 
of nullifying two uranium supply 
contracts under which United 
Nuclear was to have supplied 
General Atomic with some 27m. 
pounds of uranium at prices of 
$10J a pound, which compares 
with the present price of more 
than $40 a pound. General 
Atomic is expected to appeal 
against the judgment. 

Gulf is also defending itself 
against a suit, brought by 
Wesiinghouse Electric, alleging 
anti-trust violations because of 
the operations of the cartel. 

Exxon’s move follows dis- 
cussions between It and General 
Atomic, in the course of which 
Exxon toJd Gulf and General 
Atomic that it (Exxon) believed 
that its 1973 contract to supply 
uranium next year was void 
because <jF Gulfs alleged 
involvement in the uranium 

According to Exxon. Gulf and 
certain affiliates made a con- 
certed effort to gain control of a 
substantial portion of U.S. 
uranium and uranium reserves 
in order unlawfully to restrict 
free market supplies. 

' Exxon may well have been 
forced into the litigation against 
Gulf and General Atomic. 
Following its recent talks with 
tbe companies. General Atomic 
filed a lawsuit against Exxon on 
Friday asking for a declaratory 
judgment and for damages for 
alleged anti-trust violations 
arising from the anticipated non- 
delivery of uranium by Exxon. 

Evidence of the operation of 
an international uranium cartel 
began emerging in the U.S. more 
than a year ago as a result of 
the lawsuits being filed and 
investigations by a Congressional 
committee. The evidence alleged 
that the Governments of Canada, 
France. South Africa and 
Australia — together with leading 
uranium producers including Rio 
Tinto Zinc of the- UJv, — 
supported the establishment of a 
uranium producers’ club or 


Trading in coffee and drugs 




WHEN LEADERS of Colombia's class.” The same phrase is used 
principal financial and industrial by tbe -Liberal presidential candi- 
oxganisations were .asked to date, Sr. Julio Cesar Turbay 
specify priorities for the eco- Ayala. to describe his, power 
nomy in 1978, they answered base. With his resounding- defeat 
almost unanimously:, security, of a rival for the party nomina- 
Inflation and employment That Uon, Sr. Carlos Lleras Restrepo, 
security should top the list' may in the election on February 26, 
seem strange, but kidnapping, Sr. Turbay has loosened the hold 
smuggling, corruption and large of the Colombian oligarchy, 
scale robbery are among the which was based on its control 
main problems faced by business^ of coffee and industry. • 
men in Colombia. • \ 7 Although some of Sr. Lleras* 

There are many- examples' "Of. supporters may vote fbr the Con- 
bow these problems affect the : 

Colombian economy. Importers 

movements, can hardly expect 
to do- any better than General 

of spare parts, for instance, 
expect to lose half their orders 
in transit. A multinational com- 
pany has decided not to .-estab- 
lish tape producing plant because 
contraband and forged - cassettes 
would easily undercut its prices. 

A leading banker calculates that 
only one-third of the country’s 
financial resources are- haiidl.ed 
by . legal banks and financial cor- 
porations. An estimated 300m. 
cartons of cigarettes were 
smuggled into Colombia 'last 
year, and 400,000 bags of coffee 
were smuggled out. . ; y 
Last year's booms in coffee 
exports and drug trafficking 
brought in unprecedented foreign 
earnings flooding the 7, coratify, 
with dollars. Coffee exports-WeV- servative candidate Sr. Beli 
worth Sl.4bn.-65 per : cent /of sario Betancur, or for a retired 
total exports, and 56 per cent, soldier, General Alvaro Valencia 
up on the 1976 coffee figure — Tovar 1 - in the presidential elec* 
and cocaine and mdrijuana earn- tions in June, the Liberal party 
ings are reiiabl/ estimated at usually takes at least 55 per 
between Sib# and $3bn. cent of. votes, and Sr. -Turbay. 
annually.. Exchange restrictions is likeiy'to be the next President, 
were imposed-'in order to limit General Valencfa Tovar, who 

liquidity, and 1 their effect was re- represents a "National Renova- 
inforced by stringent reserve tion Movement,'’ has launched 
requirements. Banks which his campaign with an open letter 
failed to meet these require- b annin g: "Colombians, on Feb- 
raents have been fined heavily, ruary 26, the political class lost 
and bankers have attacked Gov- the moral right to govern us.” 
eminent policy, claiming that But in spite of their failure to 
the impossibility of providing mobilise more than a third of the 
adequate credit from the legal electorate,---, the. establishment 
banking system is pushing their parties have virtually bottomless 
clients into unofficial channels campaign' funds and a maximum 
where Interest rates are as high access tothe' media. The General 
as 50 per cent In spite of these will have a tough battle to win : 
excellent financial opportunities even 10 per cent of the votes 
in the country, many Colombians in • June. . Nor will his 'anti-, 
keep their contraband earnings corruption platform have a very 
in foreign accounts, only remit- wideappeal ip a country where 
ting enough to ensure a a -man gabled for fraud, has re- 
luxurious standard of living. reived an overwhelming majority 
Among the euphemisms applied in bis election to t he Se nate 
to the increasingly large sector Left-wing .groups, _ drastically 
which derives its earnings from, split, arid Involved m aliuuroes 
dubious sources is the "emergent with, .the remnants of populist 

Sr. Turbay has the support 
of 1 President Alfonso Lopez 
Michelsen, and: his economic 
advisers' -include President 
Lb pea's first . treasury minister, 
Sr. Rodrigo Bolero. Thus his 
policies hardly vary from those of 
the current Liberal administra- 
tion, .and his lukewarm preten- 
sions to represent social change 
in Columbia carry little weight, 
though he claims to be the 
"popular candidate.” 

With wages' steadily ■ losing 
their purchasing pflwer — last 
year’s official inflation rate was 
nearly 30 per cent— and con- 
tinuing labour unrest, the candi- 
dates are all promising to fight 
rising- prices. This year’s coffee 
earnings are likely to be much 
lower than last year’s, and noo- 
traditional exports are barely 
growing at all. so that pressures 
increasing the money supply 
should drop, were it not for the 
■enormous contraband- income. A 
poor agricultural . year in -3977 
contributed' to' inflation, and 
though this- year’s harvests may 
be up, the overall growth is not 
expected to improve pn last 
estimated 5 per cent 
Foreign investment which feu 
frif 1977 to its lowest level for tour 
vears. continues to be stagnant-- 
but on tbe other band. Colombia 
has international reserves to 
cover a whole year’s imports. 

One of Bogota's leading liberal 
dailies recently earned a MR 
story on “coffee and marijuana 
—two -economies and' two cni- 
tares;’’ analysing the replace- 
ment of the “coffee elite by 
the “ marijuana elite. w rta 
marijuana production concen- 
.trated mainly on the- Caribbean 
coast, this region is enjoying Us 
first, bonanza after years of 
exclusion from tbe dominant in- 
dustrial cities or central Colom- 

Sr. Turbay has substantial 
support in the northern coastal 
states .and has promised to 
undertake a major programme of 
decentralisation which will bene- 
fit this and other previously 
neglected areas of the country. 
But If abstention remains very 
high in tbe presidential election, 
the next Government will be In 
a precarious position and will 
have to act firmly to keep power. 

Former FBI chief indicted 



THE FORMER head of the 
Federal Bureau of Investigation 
(FBI) and two senior assistants 
have been indicted on charges 
arising from their hunt for 
radical groups in the early 

Mr. Griffin Bell, the Attorney 
General, said that the indict- 
ments came at the end of a 
three-year investigation into a 
series of break-ins that took 
place without a warrant into tbe 
homes of relatives and associates 
of a group called the Weather- 
men, which was suspected of 
masterminding a series of bomb- 

ings at the turn or the decade. 

Mn Bell, who .simultaneously 
dropped a similar charge against 
the FBI agent who led the break- 
in teams, said that the .indict- 
ment sought to put the responsi- 
bility for the FBI actions where 
it belonged — at the top. The 
maximum penalty for Mr. Patrick 
Gray, the former acting head of 
the ' FBI, is some ten' years in 
prison If he is found guilty. 

The justice Department deci- 
sion to prosecute such senior 
officials 1 "for falling to obtain 
warrants Is bound to cause 

But Mr. Beli has argued that . - 
the FBr was acting outside tbe 
law, that its senior leadership / 
knew this and that an example. 
must be made to ensure that ; 
henceforth the FBI-— “and for .- .. 
that toatter the CIA’’— does net. 
act without warrants in . the • 
future. 1 j'''-- 

- Both Mr. Gray and Mr. Felt 4 1 . 
insisted in statements that 
bad not knowingly broken the jv»l 
law and that they had acted at* 
ail times in the 1 best interest 
of the U.S. Some 68 other mem- 
bers of the FBI are also to be. 
disciplined .for their part in the 
Weathermen hunt. - -• 

Ceausescu visits Carter 


PRESIDENT Nicolae Ceausescu 
of Romania arrives in. Washing- 
ton to-day for the first of a series 
of meetings over the next three 
months which will include an 
official visit to China in May 
and a state visit to London on 
June 13. 

The Washington visit Is the 
first such by a Warsaw Pact 
leader since President Carter 
took office. It closely follows the 
visit last month by President 
Tito of Yugoslavia. 

International issues are 
expected to dominate discussions 
with Mr. Carter, but Mr. 
Ceausescu is also anxious to 
secure Congressional approval 
for the indefinite prolongation of 
most-favoured-nation status, first 
granted five years ago and since 
renewed annually. He is also 
expected to discuss further 
technology transfers and joint 

The Washington visit intended 
principally to underline 
Romania’s independent foreign 
policy, in spite of Its adherence 
to the Warsaw Pact has been 
preceded by much diplomatic 
activity. This- included a visit' 

to Bucharest by the Israeli 
Foreign Minister. Mr. Mosbe 
Dayan, and a trip to Damascus 
by the Romanian Prime Minis- 
ter. Mr. Manea Manescu. 

Mr. Ceausescu played an im- 
portant role in encouraging the 
Sadat 'peace initiative and is 
expected to affirm his wiltiDg- 
ness to continue as “hones t 
broker" in the Middle East. In 
a recent interview • with the 
Hearst newspaper chain, he 
called for continuing support for 
the Sadat initiative hut criticised 
Israeli inflexibility. He said that 
a worsening of the Middle East 
situation, and new recourse by 
the Arab countries to the regu- 
lation ol oil exports as a weapon, 
would cause negative reactions 
regarding Israel. 

Apart from the Middle -East 
Romania maintains contacts'! 
with both sides in two other 
areas— the Vietnam-Cambodia 
dispute and Korea— which are 
of direct concern to the U.S. 
and China. Both subjects are 
expected to be discussed in 
Washington and the talks will 
take on special significance in 
view of Mr. Ceausescu’s forth- 
coming visit to China. 

Author acquitted in Brazil 



the SUPREME mi titary for censorship, and described the <♦. -.;••* 
Tribunal in Brazil has acquitted booKas * a i one ' ; - • 

tie German author, Mr. Knrt Deoclecio da 

Mirow of charges ot crimes -- - -- — *••>*"- 

Mirow of charges of erums as to - V 

latest ^nationai security, and industrial compiesjf *;-. •; 

ruled that the tribunal is io- c.. in.. Ano romnns to h® r • 

— Sao Jose dos Campos to r.*:» 
jmpetent to 3udge him. stat€> fagd « suffered the m- v*- 

Mr. Mirow’s book Dictartorship flnence .of the cartels- and .J5S 
oi 1 the Cartels was withdrawn interference of cross-tic®5in& 
from .circulation here early last a tribunal 1 judge. Gen. ‘RodJ^i 
year ' under a la w . which makes Octavio, maintained that tne 000* •« i^. 
it a crime to “divnlge- false -or was a. “notable- work ^ ‘ 1. % 
Une - reports in a tendetioas : or honours economic literature. . 

trt fleeted manner, aimed at turn- surprised ihat. an accused of 
jngi tbe people against the con- category is brought before a* ^ 
S^itufed' authorities.'* ... . • trial.” 

■The book, in a wealth, of GfenL-iQctavio ■ maintained .th» £>/. 
detail,., alleges .that traw- ^ itirow ^spoke the truth**; r ■ ’*■ 

detail, alleges .mai Mj. JMTOW Spoi-e rue k 

national companies — especially cause,'; aii. pver the world,. 
to the electrics automobile, chemir are . developing , 

cals, 1 textile and steel indusmes-^phyxiating . national >Y <0®’ ^ 

. th'n VmillAn onoppn. — n > . *' '-V 

—drove- the Brazilian govern*- paxure.” 
r nient (and- other governments) -.>• . 

into' granting timn 1 privileged -.: ‘ 

Msitions which retarded Brazilian. 

nositions which retarded Brazilian . .. - - . : XV : . 

derelopment and virtually dlft-. UA COMPANY NEWS ■ 1 -V 

tated. economic .and ..political 
rules. ‘ CMrency fosses 

lies. v,urrem» 7t V;/ • 

i id their ruling, the 'military International Paper; s&mrp ■ 

| jodves. called the «***«' BBteto; fvot nwwPWy'l ' v 

Important -m-recent-tenes," u*ieh ; 
couH alter the criteria .adopted ? 

• f :-\’ 

t- ». • 

‘* >■'■4 i. 

• \ .. v '■ -V. : •- • ; *. .• \v \ 1 

- 1 :• • .ft 

V — 


Fmanriat T^ Wednesday 'April 12 1978 





- • . 

and Japan agree 
steel curbs 


,. : ; TAPAN and South Africa have one last month with the EFTA 
■i‘ aow ®«r®ed tolimitatioha on the countries, - and EEC . officials 
>■; Quantities and prices of their expect agreemeats.--.with Spain, 
: tee! shipments to the- European Caechodoral^: ^Hungary and 
: iommunitv fnr Bulgaria by the find of the week. 

. mu. ■ • * or “* rest of 1978. . Japanese jteaT shipments are 

' .'t 0 nth SS?* 1 ***** *° he L2 ul . tonnes this ' year, 

- /rth r™51 on 803 against L3m. tonnes in 1977 and 

v - Japaa yesterday, follow 13m. tonnes in 197fc The level 


-G tta 


: raw, 1 CHANGES took place in 
“ e western world steelmafcing 
■ league last year. The rankings 

. the 11 companies re- 
main unchanged. 

v : hlipon Steel held Its position 
, :as the biggest steelmaker with 
an output of SSUzn. tonnes.' 
. The British Steel Corporation 

remained the third biggest com- 
pany with an output of 17.2m. 

Kobe Steel moved up from 
19th place to 12th place, ahead 
of. Csinor . of nance. The 
figures, are compiled by the 
International Iran - and. Steel 
Institute. ' 


Band I 

I. Nippon Steel 
- US. Steel 
British Steel 
Nippon Kokan 

August Thyssen-Hutte 
National Steel 
Republic Steel 
Kobe Steel 

- 1977 1976 

- (ra. tonnes) 

Ranking in 
• 1976 

BRUSSELS, April 11. 

set for South African steel 
exports to the EEC in 1978 is 
332,000 tonnes— of which 32,000 
tonnes can bo in semi-finished 

in return, both Japanese and 
South African exporters will be 
allowed a competitive price 
e uge on these sales in the Com- 
“unity— 4 per cent on special 
steels and 6 per cent on other 
products below prices charged 
by EEC manufacturers. 

Thia compares with the 3 per 
cent margin given the EFTA 
countries, which, however, be- 
cause of their free trade agree- 
ment with the EEC, have no 
formal restrictions on the 
quantities they sell to the 

The Brussels Commission has 
missed its original deadline of 
March 31, 1978 for arrangements 
with all major steel supplving 
countries. But EEC officials are 
not greatly concerned by this, 
even though negotiations are still 
dragging on with East European 

31A "■ 



The reason is that the present 




system of minimum import 



- 3 

Prires, introduced at the start 



• 4 

of 1978, will be continued against 



• 5 

those countries which have not 



- -- " 6 

yet signed agreements with 



*>-r T 

Brussels. This enables the Com- 

12J» •• 


• '■ ; - 8 

mission to take swift action .in 




starting anti - dumping in- 







- - v. T! 

A large number of anti- 

7 A . 



dumping cases have in fact been 
opened since January. EEC 

Canada cuts U.K. imports 


V.; IE CANADIAN Finance 
~'nister. Mr. Jean Chretien, has 
renounced that benefits, of the 
. s itish preferential tariff will be 
—thdrawn from certain goods 
--^ported into Canada from the 
sited Kingdom and Ireland. 
These goods include confeo- 
_ -nery, cranes for mounting on 
: tracks, certain diesel engines,' 
■ -lain apparatus used in com- 
J ~:nity antenna television trane- 
7 -■ ssion lines and knitted gar- 
: -T.nts. 

r^The main reason for this action 
'"to assist Canadian inanufac- 
.ers who are operating at below 

OTTAWA. April 11. 

capacity or who have lost Signi- 
ficant business to imports from 
the TJJC. and Ireland. • : These 
imports will now be dutiable, at 
most favoured nations ' rates of 
duty.' - • • . 

Mr. Chretien . said that . since 
Britain and Ireland *, ended 
Canada's preferential "acedss by 
joining the . EECl . Canada no 
longer has an o&lig&$ra' - to 
extend preferential treat- 
ment to British and lrisS’ goods. 

Many oE the remaining margins 
of preference will disappear as a 
result of tariff reducfpns made 
In the multilateral tra&jjegotia- 
tions. .. - 

— OUIIUI liAAi UlttklJ uuve 

little foundation to them, but 
feel that the investigations have 
proved a useful political stick 
to persuade steel supplying 
countries to negotiate with 

So. the Commission has 
decided not to close the anti- 
dumping cases, even against 
tbose countries wbicb have 
reached agreements, far another 
three months. 

This puts their good behaviour 
on trial for a further period 
during which the- Commission will 
monitor their steel sales on a 
monthly basis. 

Britain’s sales to West 
Germany rise by 31% 


Germany rose by close on 31 per 
cent, in January, according to 
official West German statistics. 
They wont up from DM6S8m. in 
January, 1977, to DM901m. 
(£239 m.). 

Lost year's export growth 
averaged 22.42 per cent., with 
sales of North Sea oil to the 
Federal Republic providing the 
lion's share of the stimulus. The 
trend was continued in the first 
month of 1978, although comfort 
can be derived from the news 
that British non-oil exports 
totalled DM807m.. up 26.4 per 
cent compared with a 1977 aver- 
age growth rate of 14.6 per cent 

Britain's export performance 
in the West German market is 
considerably better than many 
of her competitors'. Tbe Federal 
Republic's total imports in Janu- 
ary amounled to DM19.41bn. t a 
9 per cent, increase on the same 

month of 1B77. Non-oil exports 
were up 13.3 per cent, at 

According to figures abstracted 
by the British Embassy in Bonn, 
the U.K. in January controlled 
4.64 per cenl. of the West Gcr- 

FRANKFURT, April 11. 

man imports market and 4.56 per 
cent. . of non-oil imports. That 
compares with the 3.86 per cent, 
and '4-0S per cent, respectively 
in January last year. 

•Creditable as that perform- 
ance. is. West Germany also sub- 
stantially boosted sales to 
Britain, widening the surplus in 

visible, trade between the two 
countries even further. While 
overall West, German exports 
rose by 7.7 per cent to 
DM2L31bn. in January, ship- 
ments to Britain soared almost 
29 per cent from DM1.01 bn. in 
the same month of the previous 
year to just under DMl.3bn. At 
the same time the surplus wid- 
ened ■ from DM317.6ra. to 

Although the figures give no 
indication of Britain's invisible 
exports to the Federal Republic, 
which show a big surplus, the 
figures still show Germany per- 
forming much better than the 
U.K in finished goods. West Ger- 
many, whose exports are almost 
exclusively finished goods, saw 
its share or the British imports 
market rise just under 5.1 per 
cent, in January last year to just 
under fcl per ceni. this year. 

Brazil plans credit insurance 
scheme to boost exports 

Dock strike in balance 


AN INDEFINITE dock strike in 
all Australian ports and a pro- 
tracted nationwide strike in meat 
works appear to have been 
averted in eleventh hour negotia- 
tions by Mr. Bob Hawke, the 
national president of the Aus- 
tralian Council of Trade Unions. 
Both strikes were to have started 

The trouble arose from a 
recent big increase in exports of 
live sheep, principally to Iran 
and Arab countries in tbe Middle 
East. From last year's total of 
4.5m., live sheep exports tills 
year have been estimated to 
reach 15m. at prices two and 
three limes higher than the SA5 
a head the animals would be 
expected to bring in Australia. 

The meat workers’ union 
sought an agreement last year 
with meat processing companies 

CANBERRA. April 11. 

tbat the live export trade would 
not endanger jobs in local meat 

In the past fortnight, picket 
lines at ports in South Australia 
and Western Australia have tried 
to prevent the loading of sheep, 
while sheep producers have 
formed work parties to break 
through picket lines and do the 
work themselves. 

The- use of non-union labour 
on two occasions this week led 
to the dock workers’ call for a 
national strike from to-raorrow. 
The meat workers employees 

Mr. Hawke announced late to- 
night, however, after conferring 
with about a dozen unions, that 
all bans and strike action would 
be called off to-morrow in return 
for. .the withdrawal of all non- 
union labour on loading 


LATER THIS month the Bank of 
Brazil is to introduce a new 
form of incentive for export of 
manufactured good and services 
—export credit insurance. 

The bank which is part state 
and part privately owned, said 
that it is ' doing so because 
Brazil's excessive dependence 
on exports of primary products 
has become “awesome." 

The new insurance scheme, 
which is modelled on Britain’s 
Export Credits Guarantee 
Department will provide up to 85 
per cenL cover against political 
risks and up to SO per cent 
against commercial rides. There 
will also be a bank guarantee 
scheme operated in conjunction 
with banks providing export 
credits in the form of supplier 
credit and buyer credit 

Brazil's current policy of 
directing massive subsidies into 
manufactured goods and allow- 

Problems for 
cement sector 

By Diana Smith 

SHORTAGE OF investment, 
sketchy measuring of raw 
materials, foreign domination of 
technology and equipment to- 
gether with difficulties in 
balancing supply and demand are 
pinpointed as the main difficulties 
| facing Brazil's cement industry in 
i a report by the Brazilian 
j National Economic Development 
Bank (BNDE). Production is 
forecast to fall short for the next 
year, improve slightly in 1980 to 
1982 and fall short again in 1983. 

The BNDE report is critical 
of the failure of foreign enter- 
prises operating in the sector to 
pass on expertise. 

Meanwhile Brazilian companies 
such as Votorastium, Paraiso and 
Joao Santos, which account for 
half of local production, are 
losing ground to the foreign com- 

ing large exemptions for this 
sector has come under fire from 
the Brazilian Central Foundation 
for Studies of Foreign Trade. 

In a recent report, the founda- 
tion pointed out tbat this policy 
means that Brazil la directing 
the highest subsidies towards 
products which generate dollars 
at a higher cost to domestic 
resources, calling fqr greater 
absorption of skilled labour. 
Instead of promoting exports of 
products where Brazil is more 

competitive by nature — agri- 
cultural or semi-manufactured 
goods calling for unsk illed 
labour — Brazil is even selling 
aircraft to Europe at the cost of 
such heavy subsidies that the 
dollars earned represent a heavy 
toll on the national economy, 
the foundation claimed 

Despite these criticisms the 
often-voiced o p i n To n s of 
economic ministers make it clear 
tbat encouragement of exports 

RIO DE JANEIRO, April 11, 

of manufactured goods remains 
a Government priority. 

Meanwhile Government pres- 
sure to reduce imports and in- 
crease exports is slowly yieldin? 
fruit, although the large state- 
owned enterprises are still 
showing large trade deficits. 
Some foreign multinationals have 
established a closer balance 
between imports and exports, 
although chemical concerns par- 
ticularly still import far more 
than they export. These are the 
conclusions of a report by Cacex 
(Foreign Trade Portfolio of the 
Bank of Brazil), based on a sur- 
vey of the January. 1978. import- 
export performance of 200 
national and multinational com- 

The Brazilian Government 
hopes to coax foreign multi- 
nationals either to sell more 
abroad, or reduce outlays on 
imported raw materials or equip- 

New impetus for Albras 


RIO DE JANEIRO, April 11. 

AFTER A slow start, fraught partners' own capital (CVRD 
with rumours of Japanese will put in 8 120 in. and Nalco 
reluctance «o m* J. ■*. 

project, the Albras aluminium Brazil's National Economic 
joint venture between Brazil Development Bank f 8513m. >. 
and Japan is now moving Brazilian economic incentive 
forward. . funds or foreign loans 

A delegation from Nalco guaranteed for by Nalco. 
(Nippon Aluminium Company), Production of 38,000 tonnes oE 
a consortium of tbe Japanese aluminium a year is due to begin 
Government and 32 private con- in 1981 rising to 144,000 tonnes 
cems), beaded by its president, in 1983, with the ultimate goal 
Mr Isbq Kawaguchi. Is holding of 322,000 tonnes a year in 1986. 
talks in Brasilia this week with Added to the output of Brazil’s 
its Brazilian partner, the State- other aluminium factories, the 
owned mining conglomerate, Albras project will make the 
CVRD (Companhla Vale Do Rio country self-sufficient in alurui- 
Doce) in order to put the finish- mum by 1986 and save foreign 
ing touches on their joint exchange outlays of some $200m. 
participation. a year. 

CVRD will control 51 per cent The plant will be located near 
of tbe venture, and Nalco 49 per the port of Belem in the State of 
cent The investment: totals Para in the north. Topographi- 
$L3Sbn., 30 per cent of which cal surveys of the 400 hectare 
will be supplied from the area will begin in May. 

Israeli exports buoyant 

i- BY L. DANIEL ....... ' ' ' */ ' . . JERUSALEM, April ll] 


_7E FLOATING! of the Israeli, 
, L-md and the' resultant price 
greases . in raw materials . and 
"...uts, such as fuel and electri- 
r, have.not arrested the growth 
..Israeli exports. 

' * '.'hey increased by an average 
'28 per cent, in the first quar- 
; ’* of 1978, compared with , the 
: ie period of 1977, to -reach - 
: 4m. 

: * his is only 2- per -cent less 
./•.a the growth rate for 1977 as 

- ' bole, and may be attributed to> 

temporary drop in income 
. ' n citrus due to the mercury 
re. - . ; 

: - : Respite this, overall agrjcul- 
■j; -il exports rose by 14 per cent 

- - 5175m. thanks to larger -sMp- 
. - 'its abroad of fresh agrlcul- 

il produce other than citrus. 
..ldus trial exports other to 

polished ' diamonds ~a£ . 
were up 29 per cent (rc _ 
unchanged from .the 1977 aye tv 
age) with, most categories ..ex- 
ceeding this figure except ,for 
textiles, apparel and ieatber 
goods, which rose by /only 10 
per .cent • _ : JC ■ 

Sales abroad of. pqHsbed gem : 
diamonds at S344m..jwere up 35 
per. cent (40 per dent for the 
whole of 1977); .* 

m The volume ofifargoes handled 
by Israel's- threp ports increased 
by 12 per <a&L during fiscal 
1977-78 . to leach almost 10m. 
tonnes, acceding to preliminary 
statistics, growth in 1976-77 was 

10 per cent. Haifa accounted 
for 53 per cent of the volume, 
Ashdod'36 per -cent and Eiiat 

11 p^efcm. 



Doko for Brussels talks 

:>JHIWO DOKO, ' president of 
Federation - of - Economic 
-■ -: r anisations (Keidanren),- said 
will discuss trade - problems 
^een- Japan and EEC 
ntries, including Japan’s sur- 
s with tbe Community, in 
ssels this week. 

Ir. Doko said he will meet 
ostrialists and businessmen 
' le leading a nine-member 
.n to Brussels for meetings on 
ii 20 and 21 , between the 
'•rlanren and the Union of In- 
J. '.tries of the European Com- 

' TOKYO,' April 10. 

muni ties (UNIGEE). 

But he said the talks are not 
.designed to work but definite 
measures to ' solve trade issues. 

Mr. Dofoo said . measures to 
solve trade problems are being 
discussed on a Government basis 
between Japan and the EEC 
In a joint communique issued 
after trade negotiations here lasl 
month, Japan promised to do its 
best to reduce its current account 
surplus by one third in fiscal 1978, 
starting this month, and boost 
imports of manufactured goods. 
Renter. - 

I;; t % 

rench join Japanese in 
iharmaceutical venture 

French chemicals . and 
'"- : ‘!,iles group Rhone-Poulenc 
:j?.- formed a joint venture in 
'£ra with two Japanese com?' 
_"-.:Mes to. market , its pharmaceu- 
> ls, David Cmry writes from 
- a. The new company- is called 
ia Yakubin. The "French 
m will hold 51 per cent 
capital and the two Japan- 
enterprises Shnjai and 
’ „ ; '-wa Denko 24J5 per cent each. 

-■ r /'' ... company will handle all 
-Kn e-Poulenc prodnets. in the 
;?:Y»-. : ;inese market. .They will be 
’. '-. ported from France,- prepared 
’ : the local market, and dis- 
: ;. *jted by ShujaL 

dredger order. 

'-',:new £7m. cutter suction 
- : ’ flger has been' ordered by Bos 
■ '/Kalis B.V„ a member of the 
• Bos Kalis- Westminster 

ip, from van Rees Shipyard 
\ liedrecht Holland. 

V^ Jrman iron outlook 

7; - • t German iron foundries are 
expecting productivity 
... ■ '/7th in' 1978,'' F. Esser, a mem- 
‘■■'j-.-'of the board of. the German 
-^dries Association said, 
7U reports from Solingen. He 
total, production,, which- last 
dropped 2 per cents mi g ht 
fall again. 

rts £7rou deal 

. Brothers of Belfast, in. a 
, -order is to proance hfeh- 
^ ., yitrfogy pods for the Rolls* 

Royce RBJ211 jet en^nes in 
the recently announced Pan 

American Tri Star order. It will 
also provide Right and structural 
components, ' including ailerons, 
spoilers, .wing tips, fin ribs, land- 
ing. gear doors and-' environ- 1 
mental -control doors. 1 

USSR out of talks 

The Soviet Union has withdrawn 
f mm . _ t,ilm plumed here for 
late thla - month to review 
scientific and technological co- 
operation between the two coun- 
tries* a Foreign Affairs spokes- 
man reported to-day, Reuter 
reports from - Canberra. The 
reasons given are bad Press 
publicity and Australia's refusal 
of a visa for a Soviet delegate. 

Mexicana buys 727s 

Mexicana, an important Mexican 
airline, has completed negotia- 
tions to buy three new Boeing 
727-200 jets for delivery in late 
1979, AP-DJ reports from Mexico 
City. Acquisition will be financed 
with loams totaling $ 36 . 9 m. from 
Bank of America National Trust 
and Savings Association, Wells i 
Fargo Batik* , and- the Bank of j 

Power for Indonesia 

Four Japanese construction com- 
panies -are' to'- build a YJ20bn. 
<$91 hl) hydroelectric .power 
station in- Indonesia- Nippon 
Asabah Aluminum said on Tues- 
tby, A3MJJ -reports from Tokyo. 



T'. V-. N V* 

^ instep of of 

the zia^xonial '-/ assistance,- ; : . •/ . 

(. / r.:?K £ p ; ;.v.. it, . -x .•/ v. 

Ui<L And^ WiMwdeassetsofover^ tp&m. 

... • We canarrangeplant finance, export 

foia^ r niadn^air propeilyiy^ce, equipment- . 

•; le^t^anSd^^mentf^ ./.:t vv 

;■ s^ndcreditfae wich<i)pm 


•••/+• • «/{•*, 


S'si-l'Mt®. 'u-.V "• S "V 

-fetev- -r* v 
... ; ■ 

r : ... 

. ■ . • \ ' p - •' 


_ _ __ ^"CiwwenorHouse.125 >466^ . 


^ \ 


Financial limes Wetaesdiy April 12 1978 

Drilling go-ahead for 

five N. Sea groups 


Reconstruction key 
to National 
Freight profitability 

NORTH SEA oil exploration is 
to receive a fresh impetus fol- 
lowing the formal award of a 
new batch of licences. 

Five offshore groups, each with 
British National Oil Corporation 
as a 51 per cent partner, have 
been told by the Government 
that they can begin drilling in 
areas covered by seven conces- 
sions. offered under the filth 
round of licences. 

These were first offered to the 
oil industry in the summer of 
1976. The corporation’s involve- 
ment in almost all of the conces- 
sions and new conditions attached 
to the drilling rights meant that 
negotiations over terms have 
taken much longer than expec- 


Broads § 3V4P wants 3-year \\ 
national | debt moratorium for v 
park plan British shipowners )r 


THE NATIONAL Freight Cqp- after dose consideration' of Its SllfilYfin . ■ ERin* 

poration should. In the Govern- ^financial -position and would, . w lamridil 

meat's view, return to year on backed positive and efficient «»v cm»n-r «itv»unm ' • the pi 
year proEtabiltty, as a rSult of *™«T UflUMW 

the financial reconstruction pro- ^ p et er Ellis; an MP man ^ LA ^f s to “a*® Norfolk ° n del 
posed in. the Transport Bill now «£ bf ife top® M *** ** S* & 

before Parliament. It lost £10m. General . Workers* Union, EJSiJ 1 ° r “JL EwEi 

last year an d£25m. in 1976. advanced the argument already jjLtead ?t° witiSfe? “ SSSSfe SlS! 

_ Mr - WilUam Rodgers, Urn made by the corporation tha{ ^ortWplS to M? r i 

Transport Secretary, yesterday after reconstruction, it. would area throuaha £aiStSiS&?& the nr* 
rejected calfe. from a Labour have to return over 15 per cent SS authorities M Depart 

member of the standina commit- on capital to break even-an nn- S. aumonties and -.ptfier 






" ^ 


I •Tartan 


■ British Shipowners' facing , . 'Britisb: SHp»uiIders. said some 
r; liquidity problems as.'a result of weeks ago tbstt'it dealt wifli op 
. the: present slump should fee-'Jto. ten requests. for debt resche- 
granted a three-year moratorium doling from foreign shipowners 

TTninn r uu uiic ooe.” : ~ iiiK jwroort ueaif Guarantor*: 

OrSdy ° n Shiplng ’ ^ ^ *wwbt in virtu- 

member of the standing commit- on capital to break even-an nn- bodies. to aS to moratory on a , J5LY, „„ \£r l 3 0l " I1 ° n with 

tee on the -BiR for* a more realistic targeL Tig follows a second rounds! SUSSSA^B^%£ U^to ^rSkaT^i^ 

generous reconstructioo, and calls A Conservative mnendment to consultations after a document reasonable pressure on owners, under the Liberian 

h,iw^T«^ n,emberS f0r a £j* y tbe T de , bt listing four options for the future who -were likely to face difficult w T!L,a - 

tougher approach for one year until July next year 0 f me Broads was published last trading conditions for some ,l n- 

negotiations 'over terms have IS ~ f ■. \ I t -I 1 J* e said that -the decision to andleave the corporation wito September: by the commiasion.-- years. t0 ^ 

taken much longer than expec- *t 1 - s SS? n ‘ , tt * n £100m *' 01 At that time Mr, John Gripped Covernment sources confirmed 

ted. the new blocks, although private have acted a soperator during defat *° £100n »- bad been taken debt was withdrawn. chairman, said that its preferred yesterday that debt arrangements have defaulted. ° n wh ^ b owners 

The Energy -Department has companies may be asked to pay the exploration phase. . scheme fora national park with between British shipyards and 

still to formally award 10 of the f or a t least the corporation's Companies formally awarded 

44 fifth-round blocks condition- share of exploration costs. fifth-round licences yesterday 

ally offered to- the industry. The Government is also ex- were: The British National Oil 

But the Government is pressing pected to attach new conditions Corporation, Zapex (Scotland), 
ahead with another batch of ex- to the development of any field Cariess Exploration. Gas and Oil 
{deration licences, in a bid to found under the sixth-round Acreage, P and 0 Petroleum, and 
maintain the momentum of off- licences. One idea considered in Santop—block 13/13; BNOC and 
shore drilling. The Energy De- Whitehall is that companies Mobil North Sea — block 13/19; 
part meat will shortly be outlining would have to obtain Govern- BNOC, Kerr McGee Oil, Bow 
the draft terms of the sixth round ment permission for various Valley Exploration, Shenandoah 
to industry- stages in a fields’ development Oil Corporation — block 13/14; 

Details of the next round have programme. BNOC and BP Development- 

net been revealed, although Mr. in addition, the Government part blocks 9 /9b and 9/15b; 

Leyland division’s 
£14m. development 


mat tune mr, jonn unpna, liovernroem sources connrmea iflair inrtaim«.(« ^ 
chairman, said that its preferred yesterday that debt arrangements have^defaulteiL 0a wiuch; owners i 
scheme for a national park wrth between British shipyards and - I 

extended- powers would have to tfieir domestic and foreign imsto- T - - f 

command “solid local Support” mere continues to be subject to JLltiUlulty .>• 

if it were to be successful ' ad hoc scrutiny as appeals for v , - ' 

Although Suffolk- ■' County reordering of payments- are- ^ e . active.ia. 
Council, Norwich City . Council, made. ‘ ^VPP mg rector*! 

the tourist boards . and the But there was ncr confirmation i 

Nature Conservancy Council are of a report that any large-scale s2!2ij vice-president of Marine 1 
among those to support the package of aid for the industry is 

commission, the Association of about to be revealed. This seems 7 f?i? ^? or were hold- 
County Councils, Norfolk, County unlikely because existing arrange-. Jr£v- 

Council, the ‘ Association. • i of meats appear to be adequate rf the 

District Councils, various local meet the present problem. Siri w bem S 

councils and the Anglian Water Government guarantees for y " Shlpyarda 311 d govero- 

not been revealed, although Atr. In addition, the Government part blocks 9/9b and 9/15b; ^ £l4m. modernisation and ever, Leyland is convinced that Authority have all' back£d :: -tiie. orders by British owners from 

Anthony Wedgwood Beno, the and the State corporation may BNOC, Ham LI ton Brothers Orl development programme was the new alloy radiators will offer consortium approach. - .British yards stood at £932m. in ™ r - Bevell said that, although 

Energy Secretary, has indicated infiuence which company acts as Company, Hamilton Brothers announced yesterday for two improvements in .price, weight The commission has agreed to' March last year — the most recent banks had foreclosed on 

, that the conditions will contain operator for afield development Petroleum U.K r Hamilton factories in British Leyland’s and reliability. this plan but said this depends figure available. This will now there was no e^dem* o! 

novel ideas. programme. This company Brothers Exploration U.K, RTZ component manufacturing subsi- Neither of the two investment °h there being adequate have increased well beyond £lbn. P.^ ic “mrae bankers nor any 

Within the industry, it is would be one of the licence Oil and Gas, Blackfriara Oil and g. u_ Butec. schemes Is likely to lead to any delegated powers, generiras - Under the terms of the 197& of 1 ° ss ®- 

tliough that the corporation will partners, but might not neces- Trans-European Company — part 
again have a majority stake in sariiy be the group that would blocks 9/10c and 9/14b. 

e company will spend £8. 4m. significant change" in employ- flh&ncial and staff resources paid Industry Act the Government has 

ear production facilities for ment levels at the two factories. for &F tbe rates, and it should power to provide r guarantees £???__ problems by finding 

Car imports down 4.9 per cent. 

A REVIVAL in British Leyland and Chrysler 
car sales last month helped the U.K. industry 
push back imports from 45.7 per cent, of the 
market a year ago to 40.8 per cent 

Because of the overall improvement in 

gales, which went up by almost 45 per cent, 
compared with a year ago to 179,000 units, 
importers still sold more cars — 73,000, against 
56,500 a year ago. But the British industry 
made an even bigger Improvement, with sales 
going np from 67,000 cars to 106.000. 

as well as exhausts, makes petrol internal profits and - cash “a ^ enecuve wnuui iwu tend this to £LSbm by a Com- sl,vu » D1 

tanks and oil coolers. The fac- reserves. . . ysajs. _ . . ' .. . moas resolution. 

tory will become semi-automated S. U. Butec is part of British 11 . 1 ^so wants T^inSnn 

and a design and engineering Leyland Components. There are b ® Wide nowprS the Dd SivernnSt 

centre will be built along with seven factories in the division commission, band te Wiae.pOWCIS Sfaii ZS taiiSoffi 

a computer-controlled test employing a total of about 8,000 b nlanwnd zSorte Tbe Industry Acts give the and of^failing to^S witi? the 

centre. ^ , people. Turnover is more than S Government wide powers to deal majoTproblS in Sr „ , 

It is expected to develop new £100m_ a year and the division .P 1 renegotiation of debt, much of Russian competitum. P * fe 

sUencer and ex^ust systems for claims to be “highly profit- ^ of which is handled by the Ship Britain "mbst lead the EEC m 
production in the near future, able. .i,_ prif » n r *hic mr »nd nro- Mortgage Finance Corporation, a tough policy against the Soviet 

Vint>l ' trx* Ciinnlv T.oolanrl anA OaMiiUr tha T.avlonrl by tile eOQ Ot WUS year ana pro? . ‘®. WUBU ® ? ‘L . 

the boundaries and; to 


Mr. Hunt, speaking to ibe 
London Seahorse Club, accused 
the Government of neglecting 
small owners in taxation policy. 

British Leyland 


% 1977 % 

30.96 27.998 2L63 

23.10 31,886 2SJ8 

837 6,937 SA1 

829 13,186 KU6 

Three months emled March 

a Recently the Ley and parts £Vthe first two years is not slu P Qn * ncsi *** of Finance fleet whose nan-commercial 
division announced it was ex- for Industry. ... . practices had won it a big fflli 5 v- •»- 

i tending its range to Include Although no shipping company market share in key trades. - * 

1 parts for foreign cars while Mr fc has so far publicly admitted a The EEC directive to be dis- Lj««n* 

1 malrlns n naw tn in. .. . :» 1 . i — — ft"..! . ■ 






Total British 







- 54.19 











































Total imports 
Grand total 




10030 ' 

' 123,707 













both 'for supply to Leyland and Recently the Leyland parts 
the aftercare market division announced it was ex- 

Nearly half the £8m. at Llanelli tending its range to include 
Radiators in South Wales will parts for foreign cars while irjif 

also be spent on a design and making a new attempt to in- \VTiatever 

engineering centre. The com- crease its share both of garage- * s 

pony Is to develop and produce bought parts and sales to the DQS ition 

a new range of aluminium alloy retail aftercare market. ^ _ . 

radiators partly to replace some It- is thought that part of the -« »- 
older copper and brass radiators, reason behind, the investment «] 

. These are destined for volume plan for the two components i'lfl 
car production and the introduc- factories is to make a significant . 
tion of the new materials will attempt to expand sales through \ rat 
also require new production aftercare and more accessory Il,V/l 
techniques and equipment How- shops. 

Chipboard pledge 
by Sweden, Spain 

Failure rate 
in businesses 
level at 438 

U.K. trailer production 
nearly ,50% higher 

nougm inai parr oi me ^ Y'TT 

behind, the investment [\/| QflV I CllfV 
r the two components 1*1 hUA vijUIJ 
is to make a significant . • . 

to expand sales through \ Ate ta hp 
s and more accessoiy 11.1/1)3 1" Uv 

, . repealed 

in the .hardt-hit oil and .bulk activity, did- not go far enough, ; 

trades, haye cash difficulties. he said. ■. : 

By.Ourlde of Man • 

Ipdustrics urged 
•to recycle heat 

t ■: ^ 


50De : " 

n/./o • 


A BILL to repeal the Manx Usury! 
Acts, ■ vihich effectively I 
interest rates on the Isle of Man, ! 


IDUSTRY could be wasting recover heat from a dryer on- 

p. r0:' 


is to be aunounc^ withtii 'the hpat-j equivalent to three electri- aluminium,- foil) "coating Hh*. 1 Ci \ 

_ . next four weeks. / -itv wnpntino «ttarinnc «w» About a third of the energy ; w* w . 

TRAILER PRODUCTION for .the m the first quarter of this year, 107Si a Bill ty repeal . the SSLJKrSLi normally used is saved by this ... . 

commercial industry in the U.K. despite a slight fall back m Acts was defeated in the House Council indicated yes- method. • m A\ \ A /p, . ,-s 

r w-. rose last year by almost 50 per January. Tins is in line with 0 f Keys by one vote Later that teraay, launching a drive to The Department of Energy a), y V ! 1 ^ 

BUSINESS failures in the first <w*t to 17,177 units, according the general trend of the com- year , the maximum rate allowed promote heat recovery in said yesterday that the Govera- 

thrpp months of this vear nnti. to industry estimates. mercial vehicle market, in which was raised in the Usury Amend- industry. __ ment had allocated £3L5m. to 

rr. The figures show that the sales went up by almost 17 per me nt Bill froni 10 per cent to Sir Francis Tombs, chairman demonstration . projects for tin : 

improvement in output which cent In the first two months. the present 12s per cent Under of the Electricity Council, said recovery of heat. L ' ‘ * ■ ' 

• . _ . il _ ■ 9 -» V.aL IiuiHmm o Am flirt f !e ■! ... fi 1 _ tr. if V If All lA ‘ feVrt +Vi n Irt.J in ..a Y'V— Tnk. TU.V.'« 

given an undertaking that their association’s vice-chairman and cre( jit insurance oner 
chipboard manufacturers will managing director of Scotboard . . 0] . . . . . • 

observe minimum price and at Irvine, said that dumping by totalled 438. about the same 

SB -£35. S 4S-SSS- £ SIKKa 

operation, brought the industry baqk 
jame level the levels . which were beii 


that! the Acts, if anyone fails to make it would take the lead in pro- . Dr. John Cunningham, Parlia- 

export levels to the UJv. these countries bad caused! as In the final three months of achieved in the early 1970s, was mg 

The agreement was reached severe problems last year, 
after talks between the EEC, the He claimed that even under 


However, they showed a sharp 

the levels . which were being British companies are still find- interest payments and the rate of moting heat .recovery methods, mentary- • Under-secretarp, said 

achieved in the early 1970s, was ing- it difficult to raise their interest is' higher, than 12k per If the. heat was of a quality and that the Electricity Council's 

due entirely to a rise in demand export sales, following the cent, none of the Interest is quantity that, could be applied scheme would demonstrate that 

on the borne market 
Since the slump in the com 

Scotbuild Exhibition. Dr. Nicholls manufacturers have about 30 per niDnt h« of last vear and the first 
said that similar agreements cent of the market, although th m „. hc z. thi _ ■ _ hllt 
were required with Finland, together they have the capacity m ° uths °* tills year, but 

Romania, Norway and Portugal, to provide 50 per cent showed decreases on the opening 

Breakaway cutlery group 
expands membership 

showed decreases on the opening 
three months of 1977. 

Only retailing and wholesale 
distribution, with 123 failures, 
recorded increases on both 


THE FEDERATION of British applied against all imports and 
Cutlery Manufacturers formed phased in gradually. In con- 
three months ago with the object 

Fraud charge 
trial for two 

NEB buys stake in 
equipment group 

reduction of capacity which bas recoverable through the courts, economically, it made sense to such technology as heat pipes was ]C'T~ 
occurred in the last tVfO years • An independent customs ser- recover it and use it again. not too exotic for industry to I 

to take account of the slump, vice for the Isle of Man and the The Council has produced a contemplate and .that practices - — . 

Crane Fruehauf, Britain's UJC Government has been pro- travelling exhibition which will already established in one v.-. 
biggest trailer producer, is posed by a Tynwald select com- tonr the UJG, demonstrating five industry might prove relevant to ifi - . 

estimated to have captured about mittee looking at the 84-year-old different ways of recovering others. V 

50 per cent of the U.K. market Common Purse Agreement under heat, in different industrial set- Recovery of waste heat could ... 
last year, with sales totalling which the Manx Government tings. In each case, claims the save the equivalent of up to 6m. mV 

about £35m. receives a share of Britain's .over- Council, the technique has been tonnes of coal a year, said Dr. r 

. all customs and excise duties and shown to meet the criteria set by Cunningham. Its attractions in- 

VAT. the organisation features in. the clnded the fact that it could often /r-- 

The Tynwald committee, noting exhibition.' be applied to existing plant, it 

tbat the Purse Agreement placed One example is drawn from the offered the prospect of immedi- v . 

restrictions on the Isle of Man's London factory of Baeofoil, ate savings, and it was applicable 

fiscal freedom, said there should where a heat pipe is used to to a wide range of industries. ’ll L 

be no objection to the creation of 

a separate customs service pro- 
vided rates of duty and VAT were 
maintained at UJC levels. 


THE National Enterprise Board director, said yesterday that the 

of fi-htin- unfair coniDetition ai i? Si lverwar e Association — TWO MEN have been sent for ^ bought 30 per cent of the company had two products which . rnMMISSI0N Qf ,_ t . when 

of unfair competition, whlch represents 75 per cent of trial at the Old Bailey from equity Df Automation and ?ech- would attract large markets, but * , LOfOnssiON of inquiry into wnep 

now has a0 members of an esti- the 10.000 neoole workme in the Marvl»hnn» MaeUrmtes Court i Fan. wMnh ramiir-pfi Riihstantial I allegations that uie TRA received abuor 

Judge opens 
inquiry into 
funds for IRA 

Spirit clearances rise 76% ^ 

CLEARANCES of spirits from Vodka led the white spirits at A[ 
bond rose to 1.33m. proof 157 ,000 gallons, with Rum at A/ f 
gallons in January, showing a 141,000 gallons iand Gin at 138,000 
76 per cent, increase on the Brandy was up to 95,000 

figure for January last year production of Scotch whisky v 
when .there had been an dropped in January by 37 .5 per . 

abnormally high level of clear- cent to Si/Sm. proof gallons,' %_ *- 

now has 30 members of an esti- the 10,000 people working in the Marvlebone Majtistrates Court 3 Tnnnfae. which reouired substantial allegations that the IRA received abnormally high level of clear- cent, to 6Mm. t proof gallon* v V u v _. 

S*g5 indusw 140 SfTiY "ni sS^aslLSS easa— • Htt S3«£3? ?5* 

Cf\ npr M-f rtf .Vic hrvmo stain. „r *■'*“*“ T . ._ ,, ireiaiiu nuL JUig ax- on dHOUaurj' ± uiat. jutir. iu»i 

JSSt tions equipment, for £50,000. not generate itee f-a ttlnwg ecutive funds by contracts and Scotch clearances this Janu- fell by 35.6 per cent to 7.63m- 

The new federation wants less steel table cutlery market deposit They are Joseph Kbalife u' 

something done about the to be supplied by British com- and Heinrich Peter Unteiv 

practice of some manufacturers ponies. laggauer. iiuu,wu 

or importing cheap polished cut- The federation believes that one of the charges alleges that “* e pa 
Jcry and flatware or holloware, the cutlery association's case is the two conspired with others to 5 ^ 55' Q I 5 

plating it and marking it hampered by the fact that many defraud such persons as might l9SB - . 

“Sheffield” or “England.” manufacturers who are members be induced to believe that certi- Automation 

It has subscribed a farther system and a teleprinter-linked gnmts opened in Belfast yesteivlary . reached 697.000 gallons, proof gallons. 

Peter Unter- £100,000 in 7 per cent cdmuJa- visunl display unit. 


The inquiry Is headed by Judge 

It also favours import controls, of the association haye also been ficates of deposit issned by a Services was set up In I 

tive participating preference The banks had shown little The inquiry Is headed by Judge 

shares, redeemable between 1981 interest in funding the capital Robin Rowland, QC, and although 

*23 and 1936. i requirements. 1 They were con- some hearings will be public. 

:^dJcS/ to beum tSt “2£ Automation and Technical cerned with the lack of dispos- most -of the proceedings wUl be 

LIST „ Services was set ud In 1969 and able assets in *he event of behind .closed _doors. 

believes these 

be heavily involved in importing. 1 concern called European and P” the past few years has grown failure. 

It will not be able to order] 

Bahk werevalid, and" at a rate of about _40 per-cent. ^The_ Enterprise 1 raid that It 

Arabian sanK were vaua. ana •» L * ™ ~ 3 w p tQ 0 rder documents to he 

that _ the European aad Arabian “ “J. 1, “ » produced, 2U wUl not be b<£rtig 

Bank was engaged in a genuine I turnover of more than £750,000. export potential, especially 

and honest business as a bank. I Mr. E. F. Ferguson, ma n ag i ng within Europe. 

1680 Tokay sells for £580 

evidence under oath. 

But when opening the inquiry 
at Stormont, the judge said the 
absence of such powers should 
not detract, front either the 
thoroughness or the efficiency of 
the investigation. 

The Royal Ulster Constabulary 
Martins Forest, the London has already investigated the 




.... "L: : 


y 01 ! -rs : 

‘kiri; V 

17 direct flights 
from the UK 
to Norway 

,♦ Ronray 


got the details 
ring 01-680 1011 

PERHAPS the most interesting Tunick. the New York) dealer, Martins Forest, the London °as aireaay investigatea ine 
auction in London yesterday was paid £5,00 for a black chalk, pen dealer, paid £1.700 for a Deaum allegations and «snta roport to 
at Bonhams which sold what and brown ink drawing of the table lamp, 371 Inches high and ^° il . , :." osecu ' 

could well be the oldest bottle of Archangel Michael by Paolo Bong, the German dealer, £1.400 tians. No action was taxe a. 
wine to appear in a saleroom. It Farinato, and Ferretti, the Italian for a Lalique clock. 15 inches 

was a bottle of Imperial Tokay dealer, £4,800 for a sheet of high, fitted for electric light. nria * — j. 

dating from 1680-1700, but studies of the Infant Baptist by Sothehys sold European 
apparently still drinkable. II Parmigianino. ceramics for £174,245. The top 

It had been in the cellars of In other lots, Ratjen, the price was the £9,000, well above — — 

Kaiser Wilhelm but was appro- German dealer, paid £4,000 for estimate, for a Florentine drug brjtiSH universities are to 
priated by a British colonel after studies of the Madonna and jar of the late 15th century, =»,«_ a a rant of £619m. for their 
the First World War and his Child, a kneeling martyr, a which had sold in 19M for recurrent spending in 1978-79, 
family sold it yesterday for £580. pilgrim saint figures and other £1.500. It went to an Italian £ 4 i.g m . for furniture and 
Another bottle of Imperial chalk drawings by Palma dealer. — * 

£619m. grant 
for universities 

A comprehensive introduction to 
TheGty* " 

and its many activities. 

bjz r ; 


German dealer gave £3,400 for Williams. Secretary for Educa- 
a German ewer of about 159$ by tion and Science, said that both 


Hans HUgers. Stodel, the London figures represented cash limits. 

dealer, bought a set of eleven But if pay and prices affecting 

S 8HK 

na te s 




Tokay, this time of around 1740, Giovane and CaiUeux, the A Meissen tobacco box of 
fetched £460. Both were bought French dealer. £4,000 for one of around 1740 made £4.000, and a Commons, 
by the London wine dealer Mlmir. German dealer gave £3,400 for Williams. £ 

The auction realised £17,498. A • — ■ — — ■■■ ■■ a German ewer of about 159$ by **— e ' _ 

bottle of Cockburn port, 1863 Hans HUgers. Stodel, the London 

vintage, sold for £42, and a dozen CAI rniwtlUl dealer, bought a set of eleven 

bottles or Romanee Conti 1953 9nLtKuvl*< Dutch Delft plates of 1750 for 

fetched £540. • RV AWTOKJV TUrt-MrDABT £3.000. 

A drawing by Francois Bouchet BT ANTONY THORN CROFT The first day of Sothebys auc- 
sold for a record £15,000 at — _ tl0n at Scone Palace on Monday 

Christie’s yesterday, in a sale Of brought in £76,775, with guns 

Old Master drawings which - selling well. A pair Of 12 bore WU|UU UC 

totalled £115,555. Purchased * 5 « es of drawi PSS °* Satyrs by J. Purdey sold For £8,500, and mam grant 

anonymously, it had been sent for Centaurs by Tiepolo. a similar pair for £6,000. To assist 

sale from the U-$. Christie's also sold art Christie's South Kensington term pianr 


Announcing the grants In the 
Commons, Mrs. Shirley 


Dutch Delft plates of 1750 for universities' recurrent expends 

r ? rwi I. ...... .;.a uu « _ 

Jointly sponsoned by the Rnanaol'Tnnes ond the 

Qfy Univaruty. the fKjfty course vdl be of value to 

’ new reatiSs to comptmfesnvilh interests mthe Gfy andto 

members of staff who may need to acquire a broader 
understanding of theOy's functions. 

The course is held at The Qy University Busmess Sdtool 
Basingholl Street, London 6C2 and consists of ten successive 
Thursday afternoon sessions from April 20th to June-22nd 
1978 and the attendance fee is £118-80 (he VAT) per person. 


■f c T 

i. L,i Sr>- 



L r "6rH 

% Z 



ture were to rise by “Substan- 

The first day of Sothebys auc- rially" more than the 6 to 10 i 
tion at Scone Palace on Monday per cent, allowed for in the! 

brought in £76,775, with guns Government’s calculations, it 
selling well. A pair Of 12 bore would be prepared to review the 

a similar pair for £6,000. 


Kensington term planning, 

To assist the universities’ long. 



Williams I 

ms» *978 

Flew 3 million passengers last year. 

Titled lies Crepes, the drawing nouveau, art dero and studio completed its house sale at Mare also gave provisional figures for 
reflects Bouchers interest in. pottery .to £56^65. To-day’s top Hill, Cheshire, yesterday, realis- the main grant in the following 

Dutch art, and way once in the lot at £2,800 was for a Joseph ing £61,S92. One painting by three years. These, at 1978-79 
possession of Randon de Boissct, Brocard enamelled mosque Nsismith was bought in at prices, were: £635in. in 1979-80; 

with whom Bouchet travelled in lamp. Ill inches high, of green- £4.600, but a locb scene by the £648m in 1980-81; and £670m. in 

Brocken House, 10 Cannon Street 

London EC4P4BY .: TIV: . 
Telephone: 01-236 4352 letex; 27347 ) FTOONF6. 

the Low Countries in 1766. 

tinted glass. 

same artist sold for £3,500. 





o increase, in effect, ypur own personal allowances 
. ~>y a further £130. 

ies UTgei |fs open,for thetfifest part, to any individual 
c Je heat Iri vinga tyyo I itre eon^pipny c ar for busi ness 

lurposes* for the privilege of. driving that ca^the 
-nlarid Revenue reduceydur persona I allowances 

«as«s £3 .tc* 

— . •» , • r; ' 

TTiown i n the midd I e ool u nrin of the table 

YOUR 1977/1978 



• j» ■ • • - 


: 3 34% 

/ £129 


40% / 


: ,3 45% / • 




• £190 


~ .55% 



•arancesr^ 60% 

* ^ ’or othertax rates, your tax bW will be pro rata. 




At this poi nt, may we introduce you to the new 
d i 100 Avant L. 

It’s wel l worth buyi ng i n its own right 

UdetheAudi lOOsaloonthe most sought after 
^ ^r we’ve ever built 

And it has a fifth door, to boot 

id; ^<e£380 Inland Revenue class. And intothe£250 
' . . ^ a nd Reven ue class. 

- w<# - ‘ 

And that £130 difference, as any accountant 
wil I conf i rim, is i n effect i ncreasi ngyourtaxfree 
income, or personal al lowance, by £130. (This 
red uces you r tax bi 1 1 to the amou nt shown i n the 
right hand column of the table.) 

Shouldyou haveto pay foryourown petrol/the 
savi ng becomes even more noticeable. 

■ ' Because the Audi Avant offersyou 25.4 mpg* 
ontheautomatieversion intown. And it runson two 
star petrol. 


Does all this mean you sacrifice the joys of two 
I itre motoring? 

Farfrom it 

"Motor’ timed our car 30 to 50 mph at 11.7 
seconds. Which is as quick as at least a couple of its 
two litre rivals. But its not just acceleration which 
decides howfasta car can be driven. 

Road holdingand handli ngare equally import- 
ant. And here, the Avant matches the Audi 100 
saloon: to quote 'Cat magazine, the Avant is “a car 
that can be guided with unerringaccuracyatthe 

There’s only one problem we foresee. 

By ou r reckon i ng there a re at I east 60,000 
people who could cut thei r tax bill by movi ng up to 
an Avant But we’re only ptanningto i import around 
2,000 Ava nts th is yea r 

It 1 1 j ust have to be f i rst come f i rst served. So 
send usthe coupon for al I the detai Is right away. 

Its not every day youVe got a chance to lower 
you r tax bi 1 1, yet raiseyou r sta ndard of I ivi ng. 

% interest rate. 

V?- - 

" - i.*\ .v* 1 ' 




. j/73lftrBSper2iOOkm(Manual)and34.9rnRg/aiHtre» 
'i’perarvnjmov^ramawmurti2yaarperiod>ofl; er „, n s from April 8 to June 10 1978 

....r- r * „ ■/" 

• + 

» * . i. ’ 




TihanciZil Times- Wednesday ipril 13 1578 

Scottish TUC angry 

over steel closures 


THE CHAIRMAN of the Scottish 
TUC reacted strongly yesterday 
to news that European steel 
companies were showing interest 
in buying redundant -BSC plants, 
including Glengamock. 

It proved that there was an 
economic case for keeping them 
open, he said. 

The Financial Times reported 
yesterday that a West German 
concern had been assessing the 
possibility of taking over Gleo- 
garnock, which makes steel 
using the open-hearth process 
and also manufactures rolled 

Mr. Arthur Bell, STUC chair- 
man and Scottish officer of the 
Iron and Steel Trades Confedera- 
tion. commented: “This confirms 
what we have been saying ail 
along, that the British Steel 
Corporation has deliberately 
made certain plants — including 
Gfangaroock — into high-cost 

“If private companies reckon 
they can make a profit out of 

Giengarnock, there is no reason 
why the BSC cannot. The. lesson 
is clear: there is no serious 
economic ease for the corpora- 
tion to close Glengarnock.” 

In South Wales. British Steel 
management and the TUC steel 
committee were due to assemble 
at Ebbw Vale this morning to 
negotiate early closure of steel- 
making facilities at. the South 
Wales works. 

The TUC committee, led by Mr. 
Bill Sirs, general secretary of the 
Iron and Steel Trades Confedera- 
tion. was meeting Ebbw Vale’s 
works council last night to settle 
union negotiating tactics for 
securing special redundancy 
terms for the more than 2,000 
men affected. 

Some local union leaders are 
insisting that agreement to close 
the heavy end of the works 
nearly a year ahead of the 
scheduled date laid down by Lord 
Beswick is not a foregone con- 

Indeed. - they dispute that 
March 1979 was the firm dead- 

line laid down in the Beswick 
timetable— the basis for calcula- 
ting ex gratia payments in the 
Hartlepool and East Moors, 
Cardiff, early closure negotia- 

In the circumstances, local 
officials are reported to be look- 
ing for special payouts averaging 
£3,000 per man— about 36 weeks’ 
wages. This Is more than the 16- 
26 weeks’ money agreed at 
Hartlepool, but less than the. 42 
weeks’ secured at East Moors. 

The steel corporation evidently 
stands to make a saving of £10m. 
between now and next March, 
given the immediate closure of 
Ebbw Vale’s heavy end — the open 
hearth furnaces and the slab- 
bing milL 

Approaching 4,000 men. will 
continue to be. employed in the 
works, mainly on tinplate pro- 
duction. The unions, however, 
have bees told that the workforce 
will need to be down to nearer 
3,000 men before Ebbw Vale has 
an internationally competitive 
manning level. 

Union leaders face Grunwick censure 


THE EXECUTIVE of the Associ- 
ation of Professional. Executive. 
Clerical and Computer Staff will 
face a series of critical motions 
at the union's annual confer- 
ence later this month for its 
handling of the long-running 
Grunwick dispute. 

The conference will be called 
upon to censure the executive 
for its “ cowardly betrayal ” of 
four Grunwick strikers by sus- 
pending them from the union 
and withdrawing their strike pay 

after a hunger strike outside the 
TUC headquarters. 

The executive will also be 
criticised for ending mass 
picketing of the Grunwick film 
processing factory in North 
London, and for an "excessive 
reliance” on legal procedure to 
settle the dispute. There will be 
calls for a resumption of mass 
picketing and the blacking of all 
essential services to the plant 

It will also be asked to care- 
fully vet any applications - for. 
membership of the union from 

workers involved in a dispute 
to try to prevent a recurrence 
of the Grunwick position. 

All the motions to he tabled 
on pay oppose any further form 
of wage restraint or incomes 
policy, and many call for an 
immediate return to free collec- 
tive bargaining. 

One motion stales that pay 
guidelines put a disproportion- 
ately heavy burden on groups of 
workers such as APEX members 
who always keep to such rulings. 

Leyland to announce 

terms to-night 


redundancy payments at Ley- 
land’s Speke assembly plant, 
which is under three months' 
notice of closure, are expected to 
be outlined to national union 
officials to-night. 

Union leaders have not 
accepted the principle of com- 
pulsory redundancy and, to a 
large extent, .are in the hands of 
the Speke workforce which has so 
far remained committed to fight- 
ing the closure. 

A mass meeting of the 3.000 
employees involved will take 
place in Liverpool on Saturday, 
when they are likely to learn the 
detailed redundancy arrange- 

Uaion leaders at to-night’s 
talks in Yefrk, where the Con- 
federation of Shipbuilding and 
Engineering Unions is meeting, 
will again ask Leyland to 
examine alternatives to - the 
closure of the Speke assembly 
plant. • 

One suggestion is the transfer 
of Allegro production from 
Ley Land’s factory at Senesse, 
Belgium, to Merseyside. 

If the closure goes ahead, 

though, and is militantly resisted 
by even a minority of 'the Speke 
workers, Leyland’s proposals to 
transfer TR7 production to 
Coventry could be seriously dis- 

The company therefore regards 
to-night’s meeting with national 
union leaders as an important 

• A ballot among the 5,000 fore- 
men at British Leyland’s 36 car 
factories favours joint talks with 
other staff unions on -payments 
for sickness, holidays, overtime 
and shift working, as well as 
basic pay. 

There was a majority of 412 
for joint talks, 1,744 voting in 
favour and L332 against Only 
3 124 foremen returned their vot- 
ing papers. 

The ballot was organised , by 
the foremen’s union, the Associa- 
tion of Scientific, Technical and 
Managerial Staffs, following a 
request by the men. The result 
would now have to be accepted 
by them, the union said. 

Some Oxford foremen are cam- 
paigning for separate negotia- 
tions on conditions. 

Reinstatement demanded 

for Claridge’s chef 

THE GENERAL and Municipal 
Workers' Union yesterday 
demanded full, reinstatement for 
the chef dismissed from 
Claridge's and union recognition 
in the hotel as striking staff con- 
tinued to picket outside. 

The union is asking its 12.500 
members in London to support 
the strike by not crossing the 
picket line and by giving finan- 

cial aid. Other unions will also 
be asked for support lie 
strikers said delivery-drivers had 
agreed not to supply mUk and 
eggs to the hotel. 

Mr. Bruce George, Labour MP 
for Walsall South, railed for an 
inquiry into the hotel and cater- 
ing industry, claiming that its 
workers' wages and conditions 
were “Dickensian." 

Forces ‘need 
deal like f 
firemen’s’ >■ 

Britain's servicemen fchoultf not 
be “less generous” than' ihat 
given to firemen, Mr; Callaghan 
has been told by Labour MPs, . 

The request to -the- Prime. 
Minister has been made by-Mr 
Alan Lee Williams, MP for Hfcm- 
church, who is chairman of --the. 

Parliamentary Party’s - defence- 
group.- . V 

Mr. Williams said yesterday he^ 
felt that Mr. Callaghan wanted to 
see the servicemen obtain a good 
pay settlement. “The perform, 
ance of the servicemen dnrifig 
the firemen's strike deemed; to 
offer a good - basis . 'for 
comparison.” . . .. ... 

The firemen’s settlement' pr 04 
Yided for a 10 per cent- rise 
from last November, a redaction 
in the working week from next 
November, giving .qualified fire- 
men about £15 a week- more. 

In the Commons last. night 
Mr. Robert Boscawezr, '.Con- 
servative MP for Wells, said that 
low-paid servicemen, needed a. 
rise not of 10 .per cent but 50 
per cent .to' take them out of 
the poverty trap. . _ v 

A 10 per cent rise for- : a 
private married with . two 
children on gross pay. of. £4^26 
a week, would mean— even ! if 
his accommodation charge -wag 
not increased — only 81p more a 
week in his pocket because* of 
loss of means-tested be nefits , 

Dock engineers’ 
strike hits port 

THE WEEK-OLD strike- by 500 
maintenance engineers -at South- 
ampton Docks is bringing the 
port to a halt Nq container 
berths are in operation; and 
only wheeled freight can be 
dealt with. 

The maintenance men' are 
claiming parity with dockers at 
the port but the employer* say 
that their, claim is well outside 
the Government’s guidelines. - . 

Norses reject rises 
of from £3 to £10.41 


NURSES IN the National Union 
of Public Employees yesterday 
rejected the Government’s latest- 
pay offer, which would' give. 'in: 
creases ranging from £3 to £10.41 
per week. • -\ 1 ,- - 

- All the union's IS area .coul- 
mhtees, covering 80,000. nursing 

[members, .voted.* to reject the 
' i almost ‘20 

deal. The union has . 
per cent of Britain’s 420,000 
nurses and midwives. 

Average earnings for a staff 
nurse after three years' training 
are the equivalent Of £04.50 per 
week, and many earn less. '. - 

The deal offered increases 
ranging from £3 a week -for a 

first year . stildont nurse 
£10.41- a week 4 , for a priucio 
nursing offleerv- 
The nurses waht. lhe mere* 
divided mote equally among 
-grades of staff. . • 

• JViubf aacLaidwJves, who tx 
ileye that tbs-, nature of the! 
work . them ■ the. chance t 
Pa^ productivity payments th 
Government's wages guideline 
allow, - also;, want compensate 
-payments..:' ■ i\-\ 

After, i ibe;T rejection, th 
union’s:;, negotiators . took pri 
posals .'for a- re-shaped deal t 
the .staff *ide ' of the nurses an 
mjdwivesf Whitley Council. 

Lloyds staff to discuss 
merger with ASTMS 


THE LLOYDS BANK staff asso- 
ciation decided yesterday not to 
ignore the approaches made by 
the Association of Scientific, 
Technical and Managerial Staffs 
which is attempting to recruit 
members in the clearing 'banks: 

Mr. John Bealey, general- sec- 
retary of the staff association, 
was given a mandate by the 
policy-making committee to meet 
Mr. Clive Jenkins; ASTMS gen- 
eral secretary, if Mr. Jenkins re- 
quests a meeting to discuss 
possible merger proposals. 

Mr. Bealey said the .association 
was prepared to discuss any move 
that might bring some order into 
the confusion surrounding the 
banks' national negotiating 
machinery. - 

Mr. Jenkins has written twice 
in the last month to the Confeder- 
ation of Bank Staff Associations, 
the clearing basks staff associa- 
tions’ umbrella body, suggesting 
a meeting and stating clearly -that 
the union Is looking for new 
“ partners.” . 

-The TUC leadership is ca 
cerned about. the possibility of 
protracted recruitment battle / 
insurance and has quietly warm 
ASTMS to stop recruiting i 
banking, the traditional territei 
Of the National Union of Bur 

. At least one of the other h 
associations in the confederaiio: 
that of the National Westminstc 
has indicated that it would prefc 
to join ASTMS than NUBE 
there is no alternative (o 

The Lloyd's staff associate 
however, reaffirmed that it 
seeking one staff body for Lloyc 
and the London clearing bani 
as a whole. 

Mr. Bealey said the associate 
would put all its effort into me 
ger discussions with NUBE, pn 
hminary talks on which have a 
ready taken place. The first fa 
mal meeting of the joint unioi 
staff association • working pan 
will be on April 20. 

April 1976. Assets exceed £740 million. 


priate forum for discussions From Mr. B. Lewis 
would. . if accepted. justly Sir.— Mr. L. W. Wynn (April 

increase the/ suspicion among 4) is 'quite right, that the per- indlictripc 
underdeveloped countries that formafree and- 'motivation of " UHlUoll ICO 
industrial nations not only have senior people will not suddenly From Mr. R. CockelL 
something4o hide, but are them- improve l^ giving-theor an extrtL sir— U really is astounditt 
selves afraid to challenge t he few thousand pounds a. year.. that the debate over tee contra 
growing autonomy of the TNC. But what may be false in the: S^nSonalSl fndusSes «3 
It there is one area in which short run may nevertheless turn JJiibe2ob7 on alteraver 2 
there is a common Interest out ** true in the long, term, SL o„ g J re nSeffi bSSbJ 
among western trade unionists for we are dealing with the way P y 

and the underdeveloped states people and their successors whether ' nationalised bus 
it is the wing dippine of some adapt, change and. rise within suooS to make . 

of the more notorious TNC b^ds. their working environments over EJS® SVSff^JnLor™ * 
Perhaps this is wby the Ideas .'extended periods of time (40 or to SSkTa iSwteh 
have received such a Hostile ^ yearst) The manretog director ISidised by tte at, ‘“mite 

of may indeed be demon- not 0De j Qt y (apart from s brn 
vated by his boss’s poor salary. term effects on the cost of livnc 
okI'p, aawr it, *>, .---.i unless their prices are subject i 

tnn^MmBnTiivv*- effective flnd therefore short ten 

able at the top cannot have much w mpe iltioiL 

impact on the present holders of { £ ave juBt spcnt £1000 on eon 
those ^ces. but what is i^ear is Vf>rT j n p my central heating froo 
toat these rewards which may t0 because the costs lm 
have as much to do with power become so out of tine due to tin 

™ U f£ Ifo-and fivefoW increase in P ri « 0 
a. major impact on the up-and- ^ normally people haven 1 

coming generations, who will ^^ce. They cannot do wltbou 
From Mr. M. Brook. electricity or the telephone a® 

Sir.— 1 have read E™ H takes y«n bef 0 re the jenm 

Short’s article on the new State winds; .They would not be . s_ — ° 

pension sceme (April 6) and as ratftmPl if its was otherwise, 
a 54-year-old male I am. of ®- A- Lewu 
course, more interested in pen- 47 WnodlaruL? Avenue. 
sions than some of the younger Malden, Surrey. 


B. Bolton. 

Research Department. 
Association of Professional. 
Executive. Clerical and 
Computer Staff, 

22, Worple Road. S.W.19. 

Just four years ago in 1974, recorded 
assets of the Britannia Building Society 
stood atia commendable £530m. 

Today the figure stands at aremaricable 

An outstanding achievement by any 
standards, for which the credit must 
obviously go to you, our investors. 

Arid at the same time., an achievement 

that sdts die standards for the future 
development of the Society 

. That’s where financial strength such as 
this is vitally important 

Not only in maintaining the current high 
standards of service and security available 
to our riiany investors, but equally in the 
development and expansion of the Society 
into new areas. 

. Financial strength that guarantees 
future growth. 

Here’s to the next HWOm. 


Building Society 

Always there to help. 

Chief Office: Newton House, 

Cheadle Road, Leek, Staffs. Tei: 053S-38H3L 

Letters t® the Editor 



who are 
whose « 

Hag to accept that route-linkage -losses on ito 
Id continue to SNCP and SNCB. For a one 
a tremendous day meeting this made the ln\ 
,e younger people largely-wasted. 

..jment is so far away It is difficult to see wh; 
never even think of It. passengers .could not have ben 
1 0, H - eaica ” ai if tills assumption is correct, advised to seek other ways v-hci 

U.N Governm^ should take they checked in at Victoria 

U-N. Centre cn Transnational Trinr _ u — i <imcp British Raul must sureli 

Corporations to encourage uni- 
fied accounting system -by multi- S n j 

From Mr. B. Bolton. ” 

Sir, — Your editorial and news ^ 

luverament snama .tase ... . ......... 

heed of older people’s- smce British Rail must surel] 
;m on this subject If it **?* known, from , ^experience 

- therecouTd he RiS would be the. loS « 
, d SOme backlash against the 

■ . - .... nfew State schemp " worried friends, enquiring abotr 

Not the least of these- is the ^tate scheme.. ^ late - arrival were told hi 

apparent haste with which many/*- British Rail in London that tlx 

international, companies, ..somer pFoatoleslm e. ... train had. arrived in Brussels ot 

of which are well known ColDcrley, Pudseg.- YorMiirc.. .. greatly adding to the coo 

secretive attitudes; have apttgfii — — - .'fusion -* - 

to denigrate such a modest a — f ' * 1 ” " ^ 

Sfte^SSaS 1 ^ aim 120 Cumofch HM Rood wa 

editonifi assertion ^ 1 IVIotlVEtiOIl Hlld 
w.^nisati^n for Euro- - T ; . ■ “ W U Campden 

pean Co-operation/and Develop- CQlQfiao ‘ ~ 

meat, might- he a more appro- oataiica 


A result of 
women’s lib 

members of my sex. 

Mr. Short says “because the 
feature — women qualifying for 
pension at 60— favours women it 
would appear to be acceptable 
to most people. 

discontent is reflected in protest 
and action. 

What is needed, above alL r 
for each nationalised Industry v 
be compelled to produce five-yra 
plans showing their assumption 1 
about general inflation in rest' 
and prices, and the effect of tin# 
assumptions on their awn 
and prices and volume growth 
These would only be adjusUt 

Travel to the 

U May St f ^please pose the simple I ^_5rw e L ^ W a time when ^^Parliamentary, approval 
question: why? It is a proven cMlM and relUble a fundamental change 

fact that women draw their pen- J* trawl betwSn London economic .circumslancw. Then 
sions longer, so why on earth JJT pSrte BreSS Sri! ^ir prices would be fixed on* 
should they qualify five years ferrv /tif tiavel has basl ? g ^ ared H* tbe & e ucral pr«J v 

before men? These days one has mSet but e?en noS leTel after avowing for saving; 

only to use one’s eyes to see the 'SSTmodi 25 , sreater .output, lechw^ 

result of women’s lib - flashy SrivaTS timc for wrly P m?m- Jjft* M™*" 1 incrtascd i 
cars, clothes, paying their rounds ■ meetings so that the «®2? n ®y: . 
in pubs, numbers of women dedicated faithful have con- mer ,ni - 
leaving their husbands and, in tlnued- to use. the night ferry, 
many cases, children because despite its ageing slock and 

they are financially independent. cfu de catering. Not many of :r ‘" p' vhrVd seiw. 

tsaf h ^ e ^S these Will remarn ioyal after a ggfl : »SSrSmt ZlLm 

i- f 

Cils- / 

social- costs ucrng voieu , — 

so much better than the men recent experience when, after a •StrtV^pecovert^^ln*- , 

where pensions are concerned? timely and “no hint of trouble” 1 , IC ^. fary Itc vj a. ^0^:* 

Most women in my circle agree departure from Victoria, we from tne users- ^ -4Kt; l 

wholeheartedly that the age of arrived over five hours late in Richard CoekeiL • ' " 

retirement should be equal. Pre- Brussels due, apparently, to “ Hedges” 13. Alavfield Roau. 
sumably. therefore, the people delays at Dover and consequent Wcy bridge, Surrey. 

To-day’s Events 


Si ^:r-L 

GENERAL and Board Industry Federation nology (Technological hinovatw* 

Treasury issues details of dinner. 

Centre l Government financial Annual meeting of -National verse Flux Induction, 

transactions for March, including House Building Council. British Steel Corporation t . 

borrowing requirement PARLIAMENTARY BUSINESS P-m-, Room J»>. ParllamaM^i 

TUC Economic Committee House of Commons 
meets. debate continues. 

Governing body of International House of Lords: Scotland 
Energy Agency begins two-day committee. Motion to - apt- - . 
meeting in Tokyo. Farm Gaphal Grant (Variation) Department 

European Parliament in session. Scheme. . 1* ■ 

Lu x em bourg Select Committees: Nationalised Public Accounts, 

Rail pay talks resume. Industries (sub-committee .B). Patten 

President Ceaucescu of Romania Subject: £3ectridly supply indos- Departiaent of 

begins three-day visit to Washing- try (reorganisation). Witnesses: Atomic Energy Aulhora. t 


Lord' Piowden, Baroness Seear, Room 16). 

British Steel Corporation and Lord Kearton, Sir Alan WifcSOO rOMPAPiY RESULTS . nri | 

TUC Steel Committee negotiate and Mr. Frank Chappie (10£J Carpets International {JjJ 
i closure of Ebbw Vale steel- a.m.. Room 8). Nationalised ■Eag2e Star Insurance 

arks. industries (sub^onmuitee c 2' yeaTl. Emnire Stores 

Prime Minister opens National Subject: Independent Broadcast- /(^-year). Glynwed (full 
Federation of Women’s institutes’ tog Authority. Witne sses: Lo ca l Qnardian Royal . Exrt'ang's 
energy conference. Central Hall, Radio Workshop Community Com- Wlhnot fceeden 

Westminster. municattonsr Group at S Pf.Ji-Saijm)., . . 

Mrs. Margaret Tiiatcher, Opposi- p.m^RoonrS). COMPANY MEETINGS 

tion leader, addresses Federation menti futefeiA. Cte 

of Conservative Students’ confer- Lome 1250-R 

ence. Loughborou^i University. ofgelals of 
Mr. John Creenborough. CBl Fisheries and Rood (4-30 JP-W-. V. 

president, speaks at British Paper Room 6L 

iww w >q ; 

d Food. (4-30 pnx, toitL 
Science and Tech- Lodge BoteJ, btockport, 


.■ T 


.«* > .*; y 'J 

.*>* : v'.<v< 


;va- :< - • ,.- 



: : iroup Transport Ckmtroller pfDebenhams Limited, 
as this to say about theDodge Commandos: 

>. * We have over ahundred Dodge Commandos, about 
ighty of which are G08s: I chose diem because they. . 
-ere the only 738-ton GVW trucks that met all our 
squirements and could accommodate a 1000 cu.ft. body 
ithout the need for chassis extensions. 

•. * Since the introduction of Dodge Commandos, our 
• Derating costs have been reduced considerably. Their 
; ccellent reliability record is confirmed by the fact that 


, \ 

lticipanon. : '/ 

‘We have over 90 operating centres which have to 
ork to very tight budgets; Helped by the low 
aintenance costs of the Dodge Commandos, all have 
derated well within their targets. 

V The Dodge Gommandos have been good for . 

ebenhams: apart from- the fact that costs have been Not all operators need to make full use of a 

: eatly reduced, the vehicles’ smar t., modem appearance i truck’s maximum payload It’s space- sheer volume 
fleets the company’s image. And our drivers of carrying capacity- that they want from a 

. ce them too. The cabs are well equipped and very non-HGV truck. And the Dodge Commando G08 

imfortable? gives them plenty. - 


c ■■ ■ 

As with all Dodge Commando rigids, the G08 
offers a choice of wheelbases, driveline combinations 
and chassis options. The G08 wheelbases range from 
120 inches to 159 inches. 

Standard power unit is a Perkins 3. 86 litre 
4-cylinder diesel, developing an installed power of . 
775 bhp at 2,800 ipm. As an option, there’s the Perkins. 
5.8 litre 6-cylinder diesel, with installed power of 
101.7bhp at 2,800 ipnr Naturally, there’s a choice of 
gearboxes and axle ratios. 

A very wide range of bodies can be fitted. The tilt 
cabs can be Hi-line or Lo-line, with a variety of features 
that enable ypu to have a cab that is right for you and 
your drivers. 

All Dodge Commandos are backed by a 
comprehensive warranty package that covers the 
vehicle for 12 months’ tmvmied mileage. Full details 

about all Dodge Commandos are 
w . available from your Dodge 
Truck dealer. 

/'•V ^ 


Tftkingmnr e cai^to bring you better trudks ami vans. 




Notice of Redemption 

Rockwell International Corporation 

(formerly North American Rockwell Oversew Corporation) 

7*4 % Guaranteed Notes doe 1979 

NOTICE IS HEREBY GIVEN that, pursuant to the provisions o£ the Fiscal Agency Agreement 
dated as of May 1, 1972 under which the above described Notes were issued, first National City 
Bank, (now Citibank, N\A.) as Fiscal Agent, has drawn by lot, for redemption on May 1, 1978 
through the operation of the sinking fund provided for in the said fiscal Agency Agreement $2,765,000 
principal amount of Notes of the said issue of the following distinctive numbers: 


Iff 4 1224 2054 3415 42TB 5148 8050 7006 7086. 8&06 9720 10455 11273 12088 12800 13818 24209 
19 1233 2084 3418 4284 5149 TO57 7013 TOM' Mil 97g lg«8 11277 12034 1»03 13520 14210 

jg lag 2074 3419 4287 3150 6058 7024 7990 8913 9727 10473 11282 22037 12804 13528 14223 

30 1240 2106 3424 4379 5158 6068 7015 7892 M14 9738 10480 11B86 12038 12808 13531 14219 

32 1244 2109 3425 4381 5163 6070 7018 7998 8938 9743 30491 11287 

© 1245 2110 3432 4384 51© 6084 TOg) 8007 8938 9754 1JH02 11298 

34 1252 2118 3441 4389 5184 6091 7037 8011 8948 9755 10503 11302 

42 1237 2124 3452 4386 5202 6100 7043 8018 8949 9760 ,10510 11304 

58 1268 2134 3457 4391 5206 6103 7044 8027 8953 9761 20811 113© 

60 1276 2136 3464 4397 5208 6104 7046 6041 8936 9762 10512 11307 

64 1281 2139 3475 4418 5309 8108 7067 8043 8964 9764 10521 11310 

65 1282 2141 3493 4421 5215 6110 7063 8044 8966 9709 10523 113J3 . 

67 1264 2142 3494 4432 mm 6124 7070 8048 8970 9771 10524 11319 

74 1302 2147 3498 4425 5238 5127 7072 £065 8381 9772 30535 11324 

87 1311 2160 3499 4427 5228 6133 7084 8072 8S 1 ** or ' w ' ,ncnc ,1,M 

243 1315 2164 3504 4440 5232 6134 7086 8073 

255 1319 217B 3509 4446 5237 6144 7007 8074 8995 9779 10532 11338 

256 1330 2192 3512 4+W 5255 6148 73°® BOW- * " ‘ 

257 1323 2195 3523 4453 5264 6154 7112 8086 

258 1325 2197 3535 4464 5266 6155 7119 8088 

260 1335 2201 3527 4483 S267 6158 7125 8105 

274 1333 2302 3544 4487 3288 6163 7127 5116 - — - 

9743 10491 11287 12039 12816 13537 14824 

9754 10502 11298 12051 12821 13541 14228 

9755 10503 11302 12035 12835 33547 14229 

9780 .10510 11304 13067 12853 13549 14234 

9761 20511 11305 22068 12857 13552 14235 

9702 10512 11307 12070 1285B 13561 14247 

9764 10531 11310 12071 12864 13588 14262 

9709 10523 11313 12073 12870 13571 1428T 

76 12878 13572 14274 

. . 67 12879 13580 14276 

9777 10526 11335 12099 12888 13596 14281 

9778 10527 11337 13100 13890 13598 14282 

9779 10532 11338 12105 12896 13606 14303 

9783 10535 11339 12107 12899 13609 14305 

9784 10595 11340 12109-12900 13610 14307 
9798 10556 11843 12111 12901 13612 14308 
9800 10559 11351 -12114 '12902 13821 14317 
9806 10500 11252 12118 12903 13622 14334 

1333 2206 3550 4500 5272 8164 7130 8113 -9007 9807 10363 11358 12123 12908 13823 14325 

1342 2207 3536 4503 8282 6243 7131 8123 *12 9808 10574 11359 12125 12809 13 624 14326 

294 1350 El4 3561 4504 5290 82S0 7133 81W 0015 9809 103TB L13© 12126 32912 13©7 14327 

304 1352 2217 3583 4508 5291 6255 7156 8139 9029 

322 1359 2223 3568 4509 5293 6256 7137 8140 BOOT 

333 1384 2227 3587 4511 5394 6261 7146 814* 

338 1367 2229 3589 4516 5306 M65 7148 8150 9037 

333 1368 2231 3531 4521 5309 6266 7151 8151 9038 

359 1373 2232 3592 4533 5312 M68 7160 8L84 9065 

360 1374 2240 3593 4530 5317 6271 7162 8193 9071 

387 1383 2242 3594 4531 5320 6274 7163 8213 9082 

394 1384 2247 3595 4545 5332 6276 7176 8213 WgB 

399 1388 2251 3608 4551 5335 6277 7178 8214 9089 

406 1393 2255 3634 4552 5340 6279 7179 8215 9092 

9814 10577 21388 12127 12914 13628 14334 

9S17 1DSB2 11369 12132 12923 13630 14338 

9818 10598 11371 12133 12924 13631 14339 

...... 10814 11373 12140 12935 13633 14348 

9822 10622 11378 12146 12939 13635 14353 

9827 10623 11379 12148 12941 13636 14S59 

9830 10628 11380 12152 12945 Z3637 14360 

9842 10633 11382 12153 12846 13646 14361 

9843 10639 11396 12154 12959 13648 14366 

9846 10644 11397 12155 12961 13630 14368 

9847 10646 11409 12156 12963 13651 14384 

408 1401 2257 3840 4557 5342 6280 7197 8220 9093 9848 1064.7 11410 121 99 12976 13659 148© 

409 1413 2275 3647 4558 5345 

7204 8224 flDS5 9857 10648 11411 12162 12981 13660 14394 

416 1414 2276 3653 4563 5352 6282 7206 8230 9096 9838 -10649 11415 12164 12983 

420 1418 2277 3658 4580 5360 6304 7309 8233 9107 ©68 10651 11427 12175 12983 13682 14402 

423 1428 2280 3659 4581 5363 6309 7215 8237 9117 9870 10652 11431 12196 12992 13666 14405 

424 1429 2396 3607 4583 5369 6311 7222 8240 9131 9873 10666 11435 12208 13002 13667 14406 

436 1435 2399 3666 4593 5386 6325 7227 W41 9144 8874 10672 X144S 12211 13008 13668 14412 

424 1429 2396 3607 4582 5389 6311 7222 8240 9131 

425 1435 2399 3068 4593 5386 6325 7227 8241 9144 

441 1436 2407 3672 4603 5389 0326 7228 8244' 9148 

443 1443 2409 3681 4607 5393 6328 7229 8246 9150 

444 1446 2410 3683 4609 5396 6337 7246 8287 9132 

458 1447 2411 3684 4635 5400 6338 7248 6273 9100 

461 1455 2414 3686 4037 5401 6342 7249 8270 9161 

9875 10674 11450 12212 13015 13669 14414 

9877 10693 11451 12213 13023 13670 14415 

9881 10702 11451 12221 13030 13671 14423 

9885 10703 11455 12232 13032 33678 14424 

9886 10713 11457 12234 13034 13879 14430 

laa35 ^33 

1WW 1MH7 

462 1464 2559 3699 4641 5418 6345 7236 8282 9165 9687 10718 11461 12235 130 33 13687 14431 

464 1463 2583 3702 4642 5424 6347 7257 8284 9172 9688 10720 11467 12238 13037 13700 14432 

465 1470 2568 3703 4343 5423 6360 7201 8288 9183 9901 10731 114 74 12237 13040 337 03 34433 

467 1471 2569 3709 4655 5432 6373 7274 8290 9185 9903 10722 11475 12260 18043 18713 144a 

478 1482 2S74 3711 4662 5435 6380 7285 8293 91: 

483 1494 2380 3710 4605 5437 6383 7236 8394 9193 9914 10744 11480 1* 

9908 10730 11479 122T1 13047 13729 14455 

484 1499 2583 3731 4676 5442 6384 723 8 K97 9193 9S10 10745 11481 

13049 13735 14467 

13050 13739 14*72 

485 1504 2584 3734 4687 54b?. 0388 7291 8298 9200 9917 10747 11498 12274 13053 13742 14473 

505 1505 2585 3737 4894 5463 6392 7294 8299 9304 9918 10748 11500 12277 13055 13749 14483 

508 1508 2588 3739 4710 54a 6396 7299 8319 9210 9930 10749 11501 12283 13063 1 3750 14484 

523 1515 2 583 3740 4730 5482 6309 7300 3330 931 1 9932 10750 11502 12284 33064 13757 14488 

538 1524 2593 3749 4721 5463 6409 7305 6325 9214 9933 10731 11503 12287 13076 13758 14487 

539 1528 2605 3758 4720 5409 6434 7320 8385 

SW 1530 2817 3759 4737 5472 8436 7332 8366 

541 1537 2021 3762 4729 5490 6439 7333 0370 

544 1542 2831 3768 4736 5493 6441 7333 8373 

9944 Z075S 11506 12289 13030 13761 14493 

9951 30763 11510 12291 3 3081 33702 14495 

9964 10765 lias 12294 13064 13766 14496 

9909 10767 11514 12304 13092 33709 34497 

550 1556 2632 3770 4737 5502 6443 7339 6379 9244 9970 10768 11530 12324 13093 13776 14498 

557 1560 2635 3771 4739 5515 6430 7341 8380 9245 9983 10783 11535 12328 13104 13792 14506 

561 1563 2645 3774 4746 5516 6454 7342 8381 

562 1564 2648 3782 4749 5517 6455 7352 8383 9257 

9996 10786 11536 13339 13117 13793 14507 
9999 10787 11549 12352 13118 1S801 14508 

564 1560 2656 3789 4750 5530 6460 7356 0389 9280 10014 10800 11550 12356 13120 13802 14509 

567 1578 2664 3793 47a 5531 6466 73a 8392 

368 1601 2609 3794 4752 5536 0467 7358 8394 

574 1604 2072 3801 4754 5547 6473 7359 8395 

9281 10019 10601 11552 12359 13145 13805 14511 

9281 10022 10809 11554 12360 1314? 13800 14514 

9288 10024 10810 11555 12363 13148 13808 14521 

587 1609 2674 3803 4762 5550 6477 7364 8396 9290 10026 10823 11556 12368 13150 13811 14522 

589 1607 267B 3813 4763 5551 6483 7366 8398 

10034 10824 11557 12309 13152 13813 14532 

«0 1615 2679 3814 4765 5560 6489 7377 6401 9293 10036 10825 11580 12370 13157 1M19 1453? 

618 1621 2680 3817 4767 55B4 6485 7380 &402 
a9 1667 2638 3818 4773 5567 6510 7383 8403 

10037 10827 11564 12373 13161 13820 14541 
10047 10830 11567 12376 13106 13824 14547 

640 16S8 2694 3819 4776 5584 6515 7399 8404 9297 10054 10834 11571 12380 13176 13825 14554 

641 1860 2695 3824 4778 3589 6530 7404 8423 «302 10057 10841 11372 13387 13170 13826 14555 

648 1667 2715 3831 4779 5591 6536 7409 3424 9207 10072 10845 11573 12388 13181 V 

654 1670 2724 3832 4780 5597 6S37 7410 8429 9322 10073 10847 11579 12392 13185 ‘ 

656 1873 2734 3834 47© 5607 6541 7415 8430 9323 10074 10855 11582 12393 13188 

663 1676 2756 3843 4792 5610 6545 7420 8432 9324 10075 10856 11583 12403 13197 18853 14570 

864 1679 27a 3845 4800 5612 6549 7421 6434 9325 10076 10857 11588 12404 13200 18860 14580 

677 1680 2764 3848 4804 5616 6553 7424 8435 9326 10084 10858 11592 12411 13200 

884 1684 2770 3847 4610 5623 6555 7434 8443 9328 10085 10860 11603 12412 13211 13874 14586 

886 1689 2771 3051 4811 5826 6558 7439 0454 9335 10089 10801 11606 12417 13212 13883 14301 

687 1693 2772 3868 4813 5641 6559 7449 8456 9336 10090 108® 11607 12426 13218 13887 14602 

689 1707 2775 3869 4824 5645 B365 7455 8472 9361 10091 10880 11615 12427 13221 13891 14626 
696 1712 2778 3870 4827 5648 ©70 7459 -8480 9371 10099 10885 11632 12444 13222 33894 14633 

698 1736 2780 3873 4831 5659 ©75 7460 8483 9373 1 01 02 10894. 11640 12445 13228 13897 14636 

700 lTTT 2785 3883 4838 5662 6576 7464 84© 9393 10112 10897 11642 12452 13229 13901 14640 

701 1734 2790 3389 4839 5885 0570 7477 8490 9398 10118 10906 11643 12455 13239 13913 14650 

713 1743 2795 3898 4840 5692 6587 7478 

727 1753 2797 3906 4841 5699 6601 7481 mvo w iviwu im, 

728 17© 2798 3917 4843 5700 6603 7490 84S9 9404. 10131 10923 11866 

736 17© 2811 3926 4844 5702 6613 7491 8506 9405 10137 10930 11669 

743 1766 2012 3935 4845 5708 6614 7495 8514- 9406 10148 10932 11078 

9401 10126 10917 11644 124© 13241 13917 14651 
__ x _ 9*02 10130 10916 11645 13468 13242 13919 14601 

'490 8499 ' 9*04 10131 10923 11666 12480 13250 13928 14084 

'491 8506 9405 10137 10930 11660 12499 12256 13925 14673 

'495 ©14- 9406 10148 10932 11076 12514 13257 13938 14874 

”44 1767 2620 3S37 4846 5715 6623 7496 ©17 9407 10150 10934 11677 12574 13258 13042 14675 

750 1775 2828 3940 4847 5716 6624 7S10 ©19 9408 10153 10936 11678 12525 13259 13947 14679 

0335 7512 
6639 7514 

760 1770 2830 3943 4848 a 

761 1793 2833 3945 4849 57 

760 ins 2334 3946 4866 5726 

806 1797 2844 3951 40© 5742 

815 1805 2849 3962 4882 5743 

818 1815 2985 3963 4887 5744 6651 7545 

622 1825 2980 3068 4804 5759 6853 7547 

©1 1820 2987 3972 4897 5704 6680 7 

834 1831 2988 3974 4898 57© 6061 7 

836 1833 2969 3970 4900 5779 6063 Tom 

840 1842 2992 3977 4921 5790 6878 7358 

842 1B53 2993 3982 4914 3798 6679 7560 

848 1855 2996 3983 4927 58“ 

8© 18© 2998 3885 4937 

9ft22 10157 10938 11679 12537 13261 13949 14680 

9427 10158 10940 HE 

7518 8534 8433 201® 10942 

9437 10162 10950 11694 

7B33 8541 9449 10164 109® 117© 

12538 13262 13950 14683 

12539 13271 13991 24084 

12543 13378 13954 14086 

12544 13279 13958 14688 

66a 7546 ©42 9452 101© 10953 11713 12543 13280 13962 14690 

8053 7547 8345 0460 20171 20964 11715 1254 

6680 7548 ©50 9461 10177 109© 21721 1255 

23285 13964 24692 
94® 10177 109© 11731 12550 13287 139© 14693 
9466 20178 109© 11744 12354 13288 13S© 14694 
9477 10184 10981 11752 125« 

_ 9487 201© 209© 117© 12567 

mm3 9500 T.0190 11003 11767 12568 ia*va uwi wvuw 

8643 ©12 10191 11016 11775 12509 13297 13999 14708 

8644- 0513 -10194 11025 11781 12570 13310 14001 14709 

13289 13971 14897 
13293 23981 14896 
13295 23991 14700 

882 1882 3000 3980 4940 

8© 18© 3127 4003 4942 .5810 0713 

807 1875 3128 4064 4944 ©19 6714 

874 1876 3138 4065 4947 5827 6720 .o<> 

927 1878 3137 4066 49© 5842 6727 7579 

928 18© 3148 4070 4987 5846 6734 7580 

935 1890 31© 4072 4961 5848 873S 7581 

7572 8845 931B 20197 11028 H 

23581 23314 2*002 24730 

©16 10198 11032 11781 12586 13318 14004 14741 

8517 10313 12044 11788 12589 13319 14008 34747 

9520 10215 31062 11790 13590 13320 14009 147““ 

9522 10221 110© 11791 13591 13321 14015 147 

9924 10222 110© 11792 12598 13324 14022 147 

8528 10237 11072 11794 12610 13334 14028 14773 

943 1905 3156 4076 4962 5851 6736 7882 8689 9529 10238 11081 11811 12617 13335 14029 14776 

— • “ 13818 13336 14034 14779 

946 1907 a 57 4077 4089 S8S2 6750 

947 1914 81© 4088 4976 5859 6760 

949 1B20 31© 4090 4979 53© 67© 

950 1923 3170 4091 4983 5B73 6778 

9530 10341 12084 H 

9531 10252 110© 11 

9532 10254 11089 U 

9533 102© 11099 11 

951 1926 3172 4093 4994 ©76 67© 7653 87© 9534 10283 11101 1 

085 11827 12622 
. 069 11828 12627 
.099 11829 12637 

952 1928 3184 4093 4995 5880 

954 1930 a 94 4094 4997 5881 

9© 1934 31© 4100 4998 

939 1941 a© 41© 5001 

11830 12038 

7874 8706 9536 102© HIM 11842 12643 13352 14047 14806 

76© 8708 9837 10272 11106 11843 12649 13354 1405V 14806 

7087 8711 9543 10284 11110 118© 12083- 13358 14054 14809 

7697 8713 9548 102© 11113 11857 128© 13389 24056 24813 

12061 13360 14085 14814 
12002 13870 14067 14835 
12664 13379 14008 14839 
_ 11891 12074 13383 14071 14848 

12518 13336 14034 14779 
13341 14038 14789 
13844 14038 14799 
13345 14043 14803 
23348 14045 148© 
13352 14047 14808 

966 1942 3228 4119 

979 1351 3237 4120 5027 

980 1339 3343 4129 SOSO 5894 

988 19© 3249 4134 5031 5895 

994 1963 3250 4141 5034 50© 

©12 7697 8713 9548 102© 11113 U 

770* 8719 9557 10288 11110 11 

77© 8725 9970 10298 11121 118® 

7707 8729 9583 10299 Ilia 

7708 8737 9585 10304 1J139 

7714 8738 9587 103© 11140 11894 12675 13391 14072 14875 

1020 1904 32© 4144 5037 5907 0837 77a 8740 9589 10313 11142 11908 12678 13393 14073 14877 

1029 1971 2261 4150 5044 ©12 6850 77© 8746 98© 10314 11149 119© 12683 18395 14074 1*880 

1045 1974 3267 4151 5048 ©17 6854 77® 8747 9602 10316 In© 11925 12890 134© 14080 34882 

3045 1974 3267 415 
1049 1884 3270 41 
10a 1992 3273 41 

3058 ©19 68 

77® 8747 9602 10316 11156 11925 12690 134© 14080 14882 
7824 8753 9610 10317 111© 11828 12695 13401 14101 149© 

5061 5925 6878 7828 87® ©14 10333 111® 11932 12690 13409 141© 14901 

10® 1997 3274 4103 5062 5929 6880 7835 8770 9616 10326 111® 11934 127® 13415 14104 14905 

10® 1998 3275 41® 50® 5933 6883 78® 8771 9633 10336 111® 119© 127© 13422 14114 14907 

1074 2002 3277 4167 
1079 20© 3278 41® 

5071 ©34 6887 7870 8772 9634 10338 111© 11937 12704 13420 14120 149© 
5077 5B38 6891 7871 8776 9636 10339 11201 11944 127© 13434 14127 14931 

1084 2006 32© 4170 5061 39© 6896 7878 8782 9639 10343 112© 119® 12710 13*37 141® 14933 

1090 2008 3287 4171 50® 5941 6899 7802 8785 9646 10349 11205 11957 12711 13438 141© 149© 

11© 2009 3289 4172 5087 5942 69© 7904 8800 9848 10351 11306 11959 12713 13439 14140 14939 

1106 ©10 3290 4174 5089 5947 6904 7906 88© 98® 103® 11207 11960 12722 13447 14147 14940 

1140 2013 3297 4134 5099 5953 6931 79© 8804 96© 10371 112© 11964 12723 134© 141© 14841 

103© 11211 11972 12724 13458 141® 14M7 

1154 ©14 3299 41© 51© 5965 6932 7912 8005 9669 103© 11211 11972 12724 13458 141® 14047 

1177 2020 3300 4192 5116 3969 8940 7913 88© 9677 10381 112® 11978 127© 13479 141© 14051 

lira, am 33© 4199 5124 5970 696* 7934 88© 9683 103© 11223 119® 12734 13481 141© 149© 

1187' 2023 3348 4204 5128 5975 ©70.7921 8831 9687 1©© 11232 119© 12737 134© 14164 149© 

11© 2031 3349 4205 5129 5978 6671 7922 8849 9099 104®. 11235 11987 12753 134© 141© 140© 

1195 2032 3354 42© 5130 39© 6983 7924 8B61 97© 104© 11244 119© 12757 13492 14170 149® 

1197 2033 3356 4236 51© 39© 69© 7928 ©78 9704 10404 112® 11992 137® 135© 14172 

11® 2034 33© 4243 5137 5991 6993 7942 ©79 97© 10407 11257 11995 127® 13504 14197 

12© 2042 34© 42® 5138 6021 6095 7947 8887 9710 10424 112© 12013 12774 13505 142® 

1204 2048 34© 4262 5139 6032 6098 7951 8895 9711 10438 11265 12020 127© 13510 142© 

1209 2049 3*12 4271 51® 6039 7004 7953 8900 9713 10441 11271 120© 12789 13512 14203 

1210 2053 3414 4276 51® 6047 7005 79® 89® 9715 10443 11272 12027 127® 13515 14208 

The Notes specified above, arc to he redeemed /or Che said sinking fund a£ the WCG-Ageacy 
Services of the Fiscal Agent, 111 Wall Street, 2nd Floor, New York, -New. York 10043 
or at the main offices of Citibank in -Amsterdam, Frankfurt/Mam, London (Citibank Bouse), Milan 
and Paris or Citibank (Belgium) SA. or Krediethank SA. Luxembourgeoise, in Luxembourg, as the 
Company's paying agents, and will become due and payable on May 1, 1978 at the redemption price of 
100 percent of the principal amount thereof plus accrued interest on said principal amount to such 
date. On and after such date, interest on the said Notes will cease to accrue. 

The said Notes should be presented and surrendered at the offices set forth in the preceding para- 
graph on the said date with all interest coupons maturing subsequent to the redemption date. Coupons 
due May 1, 1978 should be detached and presented for payment in the usual manner. 


March 29, 1978 

Fiscal Agent; 



Telex: Editorial 888341/3, 883897 Advertisements: 885033 Telegrams: Finantimo, London PS4 
_ _ Telephone: 01-248 8000 

For Share Index and Business News Summary in London, Birmingham, 

Liverpool and Manchester, Tel: 246 S026. 



Amsterdam: P.O. Box 1296, Amsterdam-C. 

Telex 12171 Tel: 240 555 
Birnimgfmtn: George House. George Road. 

Telex 3386S0 Tel: 021-454 0922 
Bonn: Press ha us n/104 Heussallee 2-10. 

„ Telex 8869542 Tel: 210039 
Brussels: 89 Rue Dneale. 

Telex 23283 Tel: 512-9037 
Cairo: P.O. Box 2040. 

Tel: 938510 

Dublin: 8 Fltzwilliam Square. 

„ Telex 5414 Tel: 785321 
Edinburgh: 37 George Street 
Telex: 72484 Tel: 031-226 4120 
Frankfurt: lm Sachsenlager 13, 

Telex: 416263 Tel: 555730 
Johannesburg: P.O. Box 2128. 

. Telex 8-6357 Tel: 83S-7545 

Lisbon: Pracs da Afegria 58-XD. Lisbon 2. 

Telex 12533 Tel: 362 508 
Madrid: Esproudceda 32, Madrid 5. 

Tel: 441 6778 

Manchester; Queens House, Queen Street 
Telex 666813 Tel: 061-834 9381 
Moscow: Sadovo-Samotecbnaya 22414, Apt 25. 

Telex 7900 Tel: 294 3748 
New York: 75 Rockefeller Plaza, N.Y. 10019. 

Telex 66390 Tel: (212) 541 4625 
Paris; 36 Rue du Sen tier, 75002. 

Telex 280044 Tel: 236.5743 
.Rio de Janeiro: Avcnida Pres. Vargas 418-19. 
Tel: 253 4848 

Rome: Via della Mereede 55. 

Telex 61032 Tel: 678 3314 
Stockholm: c/o Svenskg DagMadet Raalam&a- 
vageo 7. Telex 17603 Teh 50 60 88 
Tehran: P.O. Box 11-1879. 

Telex 212634 Tel: 68*693 
Tokyo: 8th Floor, NOton Kefeal Shimbtm 

Building, 1-9-5 Otemachi, Chiyoda-ku. 

Telex J 27104 Tel: 241 2320 


Birmingham: George House, George Road. 

„ Telex 338650 Tel: 021-154 0922 

Edinburgh: 37 George Street 
Telex 72484 Tel: 031-226 4139 
Frankfurt: lm Sachsenlacer 13. 

Telex 16263 Tel: 554667 
Leeds: Permanent House, The ffeadrow. 
Tel: 0532 454969 

Telex J 27104 Tel: 241 2920 
Washington: 2nd Floor, 1325 E. Street, 
N.W„ Washington D.C 20004 
Telex 440225 Tet (202) 347 8676 

Chester: Queens House, Queens Street 
Telex 666813 Tel: 061-834 9381 

Telex 666813 Tel: 061-834 9381 
Mew York: 75 Rockefeller Plaza, N.Y. 10019 
_ Telex 423025 Tel: (212) 489 8300 
Paris: 36 Rue du Sentfcr, 75002. 

Telex 220044 Tel: SHLS&Oi 
Tokyo: Kasahara Building. 1-6-10 Uehflamda, 
Chiyoda-ku. Telex J 27104 Tel: 295 4050 


Copies oh rain able from newsagents and bookstalls worldwide or on regular subscription 
from subscription Department, Financial Times, London. 


Executive changes 
at Wioofhis Teane 

Mr. Patrick Best has -been MINSTER PRESS and has. been 
appointed a deputy chairman of succeeded is secretary by Mr. 
the WIGGINS TEAPE GROUP and havfd BfadotraiL 
remains chief executive of the . * 

group’s European operations. Mr. Mr. W. Aynsley has been 

Peter Gardner, who relinquishes appointed commercial director of 
tus executive responsibilities with. NEI PARSONS, 
the group at the end of this * 

S‘??? h T»S!. 0 Sff^ a LJ irincipal 0f ^ V- F- Mackenzie, previously 
BAT Industrie? group manage- sales manager, . has now been 
meat centre, remains a deputy appointed sales director of RMW 
chairman of the Wiggins Teape * 

succeeds Mr. E. & Bril has been 

as Chairman of appointed a vice-chairman, and 

Wiggins Teape limited and con- Mr. D. FJ Hutt has become 
timies > as chief executive of the managing director of AD INTER- 
groups UJv. operations. NATIONAL. 

* ' * ' 

Mr. M. E. White. has become . Mr Fred Styles has been 

appointed chairman o£ the new 
WYCOMBE marsh PAPER part-fcme general committee of 

A ™ jLS \ P- D - M- Celi has the ROYAL ARSENAL CO- 

relinquisbed the position of joint OPERATIVE SOCIETY, 
managing: director, but continues *- 

as chairman. The parent concern Mr 

ia Bunzl Pulp and Paper. ap^in^ a G ’ d&r ** ^e 

Wr ; ** KJessup has been NORWICH 
appointed managing director of GROUP ■ 


CIATES. He recently relinquished Mr. Donald Bardsley has been 
his directorship of Fenchurcb appointed executive deputy chair- 
Group Brokers. m an o f BANK JULIUS BAER 


Mr. Ted HAD has been appointed * 

managing' director of FRIGO- Me. JL E, Blunt has been 
SGANDIA and Mr. Don Harness appointed divisional chief execu- 
and Mr. Alan Oakes have joined flivte and Dr. L JE. Kimberley 
the Board. divisional director of the process 

* engineering division: of WGL 
Hr. R. E. Eades has retired as Within that division Mr. H. White- 

a director of GROUCH GROUP, law becomes managing director 

* of United Kingdom Construction 
Mr. S. C M. Bunt has termi- a™* En^neering in place of Mr. 

nated his position as managing Blunt, and Mr. G/ Blackwell and 
director of TACE, by mutual Mr. Itt. J. Foster join the board, 
agreement, because of ill-health. Mr. 4. EL Gibson has been made 
Mr. R. E. Richardson has joined technical sales director, West’s 
the Board. Pyro. In the civil engineering 

it division Mr. B. P. Harrington is 

Mr. R. K Holden baa resigned managing director. West’s 
as a director of BERWICK TMPO. Ftiing and Construction; Mr. A. T. 

•* Stanmore, managing director, 

Mr. P. Stubbs has been Gratis CivQ Engineering : Mr. J. 
appointed to the Board of managing director, 

G AND W. COLLENS Westptie International; and Mr. P. 

* Merry, a director of West’s Piling 
Mr. L. L Bammum has retired g“d Construction. Mr P. F. G. 

from the Board of BUNZL PULP <*»*** executive 

AND PAPER. “ division.^ 

Mrs. Nicky Harrison has been HARTLEY COOPER UX. has 
elected chairman of the Education formc 9 transact toe 

Committee of the ASSOCIATION bandied by the 


TIES, succeeding Mr. Peter Hartley Cooper and Company. 
Horton. Mr. DivU DeU has ggiotan ** 5? 

become chairman of the Arts and 5?' /■ " 

Recreation Committee of the «5£ , J?“22* 

Association in place of Mr. Ellis 

Hmman * * and Mr. S. Flowers. Mr. C. E. R. 

Mr. Timothy Ryan has been “ secretary, 

elected a member of the Stock 1 £ , 

Exchange and has become Mr * ■ Prter Ward, personnel 
asSdated irito SABIN BACON director of UNION CARBIDE UJC 

* been appointed a member of toe 
Dr. T. N. R. Harpies has been executive Boards of those com- 

appointed joint managing director paraes. The parent concern is 
METALS, a member of the TION, UE. 

McKechxue BrtJthers group. * 

ic Mr. Huw Jet-mine has been 

. Mr. Reg Oliver, chairman and appointed production director nnd 
managing director: . of John Mr. Neville BayUss, building 
Baddon and Co„ is; Ur become director, of CONDER MIDLANDS, 
independent chairman of the * . 

joint industry xonhaittee , for Mr. Brian L Smith will join 
SEARCH in succession to Mr. MACKENZIE AND CO n stock- 
Peter Scruton. . brokers, bn April IS. 

* ; * 

Mr. Stanley Orme has been Mr. Vernon Saunders has joined 
appointed national dirertor of CENTRE HOTELS as development 
the UJC operations of ITW director. 


* Mr. Philip Saarari, a member of 
Mr. S. J. Bergen has been hM Inspectorate with toe post of 

RPRSKSS 3 managing director or sta g - inspector dealing with 
ROYLES. Mr. W. Gomersall further education, has been 
SEJBf", ^ainnan and becom© appointed as a part-time educa- 

tion consultant to the MAN- 
the jMriata utm Riutlqp POWER SERVICES COMMISSION, 
and fluid control division. Mr. J. ^ 

»■ Hmnnl Jones has been 
Sri* appointed a director of ROWLIN- 

2 ?? STcPa. » 3 teaal ^ * S °N SECURITIES, an industrial 
CrftehJey are 'm dirEctore in ? nd commercial development and 
the filtration and fluid control Investment company formed to 
division. manage the existing Industrial 

* estates, and to carry out new 
Mr L T. B. King has been industrial development by Rowlin- 

appointed a director of NOLTON. son Constructions Group. Otoer 

* directors of the new subsidiary 

Mr. J. Paterson is to be com- are „^ Hr -. 
pany secretary and actuary of the man » 3011 ^ Erl 1 c Shirt, secretary. 

LAND and Mr. R. M. Paul will The NAjnONAL .ECONOMIC 
become pensions manager from DEVELOPMENT OFFICE has 
June L Mr. D. W. C Bril retires appointed Mr. Stephen Glbhs as 
as secretary and pensions chairman of a new Sector Work- 
manager at the end of Miy. ing Party for the Plastics Pro- 
+ cessing Industry. Mr. Gibbs is 

Mr. Cecil Dawson has retired as deputy chairman of Turner and 
a director and secretary of WEST- NewalL 

Coveiit Garden partner 
sought by GLC 


THE Greater London Council is 
looking for a city financing 
partner to develop its Jubilee 
Market site in Covent Garden. 

The Covent Garden Committee, 
which is directing the redevelop- 
ment of the former fruft aD< * 
vegetable market in the Centre 
of London's West End, has 
decided to go ahead with pro- 
posals for a mixed commercial 
and housing development. on the 
0.8-acre Jubilee Market site to 
the south of the Covent Garden 
Market Square. 

It has already turned down 
two unsolicited approaches, from 

hotel groups to build on the land, 
preferring an office or other 
commercial development that 
will finance homes for SO to ISO 
people and a car park for 225 

The market decision follows 
the committee's move to restore 
the central market buildings at 
a cost of £2m., and its proposals 
to restore the former Flower 
Market buildings, which will 
house London Transport's 
museum when completed In 1980. 

Schemes for the extension of 
the Royal Opera House in Covent 
Garden are still under consider- 
a tion. 

Tomato price inquiry urged 

tary for Prices and Consumer 
Protection, is to be questioned 
in Parliament about the ‘‘exorbi- 
tant" price of tomatoes. 

Mr. Tom Torney, labour HP 
for Bradford South, has tabled a 
Commons question, urging toe 
Minister to set up an inquiry to 


establish whether "undue 
profiteering" is going on. 

Mr. Torney, a member of 
Labour's Food and Agriculture 
Committee, said: “ Tomato prices 
have gone through the roof. Why 
should housewives be expected 
to pay fiOp a pound or more? 

"I appreciate that this is a 
seasonal food, but it seems scan- 
dalous that toe price should be 
so exorbitant about twice what 
it was this time last year.” 

Join our exciusn Kerch from* Rk>« 3 
Parties with luxury tramP* rao ® 1 / 
beret viewing and private tar in4 lunca 
Facilities, fully ncorted to: 

TRJOMPHE and man y other 

THE CLASSICS. THE -1,000 and 
MARKET MAY 4 and i. 

For our 1976 racing brodtvn, 
rtsenmiom and full lafanfflMon 
please telephone; 01-561 192 2 

Children gather 
aluminium scrap 

or write to: _ 

' 74 QM Brora pton Rori. London- SW7 

A scheme in which Buckingham- 
shire children will collect scrap 
aluminium during the summer 
term will be launched to-day. 

It has been organised by the 
Aluminium Federation and the 
Buckinghamshire Education 
Authority with the encourage- 
ment of the Government’s 
National Anti-Waste Programme. 
It could set ihe standard for a 
national drive,, 

Financial Times Wednesday AprH 12,1978* 


To the Holders of 

Amoco International 
Finance Corporation 

'3% Guaranteed Sterling DehentnresDne 1987 

IS HEREBY GIV0? that, pursuant to the provisions of thelndcnture dated es of May 3, 
2972 muter which the afaova described Debentures were issued, Morgan Guarantying Company of 
New I ore, as Trustee, has adjected for redemption on May J, 1978, through operation of the sinking " 
fmtL at tl» principal amoimttijereaf, £L000/XX) principal amount of said Dehea tares,. The seriai' 
aranbereof Im D ebentures sdieto -s; -• . 

j .BEBENTDRES OF £500 EACH . - ’ ■ 

*525 1064 2253 3246 4305 7433 *388, 9427 10023 10715, 11340 -14024 3©7l 17281 37979 twbt twbi ' 
§£ 290T -*2fi0 45W 74ST 8732 9M7 10024 10717' 11355 14027, 08379 17287 J39BO SS* ?SS 



45 11® 2305 8283 iinem* 

2 9487 30050 1074 

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i&i 232? 552® Two-mob s®o 101 ® imtt 1282a 14207 i®B7 17444 18152 wtm 

2© 1345 — — 
295 MSB 
297 13 71 2312 8400 

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5H520 10220 1©84 13S32 14217 15682 17434 1 81 BO- 1 MIL 19440 

8622 20223 10900 12037 24230 25834 27458 281© 38814 194BZ 

™ 1225 ££? 2551 2125 7877.9940 »©2 10224 10914 mt3 14239 isms 174 ® isim 18822 1993s 

331 2380 2324 S470 0107 7882 8948 9637 10226 10915 12644 14241 157© 17474 18174 18828 19543 

334 1382 2328 3472 BIOS 7684 8863 9648 10237 10925 12840 14245 15704 17483 18181 18820 19548 

346 1385 2530 8474 ®88 7734 8990 

347 1388 £540. 3476 ®89 7748 8098 

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407 1445 2383 3512 0228 7787 9040 

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414 1452 2599 3520 8239 7804 9053 

426 1460 26© 3529 8242 7007 9060 

432 1462 2605 3533 6244 7823 9062 

467 1468 2607 3552 6268 7825 9079 

471 1489 2®0 3554 6275 7831.9081 

472 1473 2635 3538 6282 7835 9003 

479 1474 2647 3560 6268.7847 BOSS 
482 1304 2652 3582 8358' 7883 909 4 

485 1509 2671 3564 6359 7858 91© 

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9744 10354 11020 135© 14575 15928 17&J0 18307 10938 19656 

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3650 6423 7931 9177 
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9777 10398 11045 13538 14711 16085 17013 18334 189H2 19692 

9779 10400 110® 13544 14713 16080 17076 18336 18969 39704 

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On May 1, 1978, the Debentures designated above will become due and payable at 100% of the 

principal efoount thereof ( i) in such cotear currency of. the United Kingdom as © the time of 
payment shall he legal tender for the payment of public and private debte therein called “pounds 
sterling”) or (ii) at the election of the hoMer.of such Debmuure, ® such coin or currency of the 
United | States of America as at' the time of payment shall he legal tender lot the payment of public 
and private- debts (herein called “U-S. dollars”). .Such election to -rereive the- Dollar Equivalent, as 
defined in the Indenture, is irrevocable and may be-. made only, by the presentation and surrender of 
such Debenture, together with a completed Dollar Payment Notice substantially in the fotm set forth 
on the Debenture, at the office of one of the below listed paying agencies not later than April 19, 1978; 
provided, that, notwithstanding any such election, the holder of Rich Debenture will receive and 
accept payment in pounds sterling in the event that, for any reason it is not possible for the Trustee 
to determine, in accordance with' the terms of the Indenture, the Rale of Exchange, as defined in the 
Indenture, on the applicable dale for such determination or otherwise effect a sale of pounds sterling. 

Said Debentures will be paid, upon presentation and surrender thereof with all coupons apper- 
taining thereto maturing after the redemption date, at the option of the holder either at the 

Corporate Trim Office of Morgan Guaranty Trust Company of New York, lS Broad Street, 
New York, N. Y. 10015 or at the main offices of Morgan Guaranty Trust Company of New York 
in Brussels, Frankfurt am Mam, Paris or Zurich, or at the main offices of Ban© YouwiQer '& G, S.p~A- 
in Milan or Rome, or the main office of BahlcMees & Hope N.V. in Amsterdam or the main office of 
Krcdietbank SLA. Luxembourgeoise in Luxembourg. Payments will be made (i) in the rase of any 

Jurcdietbank auv. Luxembourgeoise m Luxembourg, rayuients wm be made u; in me rase oi any 
payment to be made in pounds sterling by a check drawn on a pounds sterling account, or by transfer 
to a pounds sterling account maintained by the payee, with a bonk in London, subject in each ease 

to any laws 'and regulations applicable thereto, end (ii> in the case of any payment to be made in 
U.S. dollars, at any agency outside New York City by a check drawn on a US. dollar account,' or by 
transfer to a U.S. dollar account maintained by the payee, with a bank m New York Gty, subject 

in each case to any laws or regulations applicable thereto. 

Coupons due May 1, 1978 detached and collected in the usual manner. in accordance ' 
with and subject to the terms and conditions set forth above for the payment of Deben tares. . - - : Yyj 
From and after May 1, 1978, interest shall cease to accrue on the Debentures herein designated fw 



Dated : March 29, 1978 

Safeguarding Enterprises’ Autonomy 

8th International Management Symposium at the Graduate School 
for Business Administration, SL Gall, Switzerland 
8th-10th May 1978 

Honorary Chairmen: 

Federal Councillor Dr. Kurt Forgler 
Federal Councillor Dr- Fritz Honegger 


Annin O. Baltensweiler 

President Swissair 
Zurich. CH 

Dr. Guido G. Sandler 
Members! the Board 
Dr. Rudolf A. Oetker - 
Bielefeld, W. Germany 

Amaud de Borchgrave 
Senior Editor Newsweek 
Paris. USA 

Prof. Helmut Sormenfeldt 
Johns Hopkins University 
Washington, D.C^VSA 

Dr. Fred Cfa. Ikld 
Washington, D.C., USA 

Dr. Olivier-Long 
Director General GATT 
GenSve, CH 

The Honourable Max vac der Sloel 
former Secretary of Stale of the 
Royal Dutch Government 
Vo or Schotcn, Netherlands 

Franz Luterbachcr 

President BBC Aktiengesellschaft 

Brown, Boveri & Co, 

Baden, CH 

Governor Henry C. Wallich 
Federal Reserve System 
Washington, Z?,C„ USA 


V Jfii ■ 




j i, ’•■any 

liat *a§o; 


W 1 



Roger Martin 
President Compagnle de 
Paris, France 

30 workshop sessions Ohaircd by 
well-known executives and leading 
scientists take place oil Monday 
and Tuesday 


Prof, Allan Meitzer 
Palo AiKo, USA 

Prof. Hans L Merkle 
President Robert Bosch GmbH 
Stuttgart, W. Germany 


ISC International Management 
Walsenhatisstrasae 14 
P.O. Box 706 

CH-9001 SL Gall, Switzerland 
Tel. (0041 71 international) 22 00 SO 
Telex 71271 wsch-ch - 

iT *ee! 


Dr. Curt Nicolin 

Chairman of the Board ASEA AB and 
of toe Swedish Employers Confederatiad 
Stockholm, Sweden ■< 

The fee for partiopation is SwFr. 1350.—. 
This includes preparatory documentation, 
a general reading list, materia 1 , for the 
Symposium. luncheon, and a recepuon 
given by IhfrlSC.lntettiAri 0 ® 1 * 
ManacemwiL..:. ' . 


The British Steel Corporation as you 
well know has a problem. 

For many companies that problem 
could be agolden opportunity 

The size of the problem. 

Our strategic modernisation 
programme affects many thousands of steel 
workers without other jobs to go to. 

What we’re doing about it 

We’ve set up a dynamic little company 

It’s called BSC (Industry) Ltd. 

Its objective is to attract new industry 
. into our steel closure areas. 

Our brief is ‘. . .to be hig hl y flexible 
when negotiating financial inducem ents with 
companies interested in relocating . . 1 
In other words, we’re going to bend 
over backwards. 

There’s a powerful mixture of people 
interested in our success. 

The UK Central Government 
The European Coal and Steel 

The various regional authorities. 

The Steel Committee of the TUC. 
And finely the full weight of the British 
Steel Corporation itself. 

Here’s justasmall sample ofwhatyou 
could get out of it- 

A skilled workforce, specially trained in 
advance for your industry 

Fully serviced industrial sites. Most of 
them, greenfield. 

Purpose-built factories. 

And financial incentives which are very 
unusual to say the least 

It’s been described as the most sophist- 

icated industrial package ever assembled. 

It’s really very simple. 

We’re prepared to take you by the hand 
all the way making sure ybu don’t trip over 
any red tape. 

We’li make sure you squeeze the 
maximum benefits available, and sometimes 

Our problem will be an opportunity for 
those companies that get in first 

Telephone us now (01-235 1212 
Ext 200) or dip the coupon for more facts. 

bsss<e' qy p aa as! mamsm 

jBii bi mm 


RO. Box 403, 

33,Grosvenor Place, London SWIX7JG 









■— W— M M— wm WM— M — — WH— — H— I 

New Issue 
April T2. 1978 

•zzmeteeraf ragman tr 

MEXICO**. . 

DM 200,000,000.— 

6% Deutsche Mark-Bearer Bonds - 
of the United Mexican States for 
Economic Development of 1978/1985 

Offering hies: 

April 1, 1086 
Frankfurt am Main 

First Boston {Europe} 


Deutsche Bank DresdnerBank 

AWangMaflKfc* • 

Banco NacJona! de Mexico, SA. 


Kuhn Loeb Lehman Brothers International Men 

Menfll Lynch Internation a l &Ce. • 

Nomura Europe N.V. 

N.M.RothschMd &Sons 


Banca Commercials KaSana 

Banque da Paris et do* Pays-Gas 

Crodtt Setose White VWd 

Lloyds Bank International 


Swiss Bank Corporation (Overseas) 

Union Sankof StMtmrfaxf (Securities) 
IMtad . I.. . '. 

ABO Securities Corporation 

Algemene BankNaderiand M.V. 


Amsterdam-Rotterdam Bank N.V. 

AmhoM and S. Bl aic hr oader. Inc. 

Banca Nazionale dsi Lavoro 

Banco di Roma 

Atlantic Capital 


. Banco Urqu^O Hfspano Acneri ca no 

Bank of America International 

Liu lit ud 

Bank Lau International Ltd. 

Bankets Trust International 


Banque G&iArale du Luxembourg SA 
Banque Nationals do Paris 
Banque Populate Suisse SA. Luxembourg 
Barclays Bank International 

Li ml lad 

Bank Julius Baer International 

BmkfQr Gemainwirtschaft 

Bank Maes AKppeNV 
Banque Bruxelles Lambert S-A. 

The Bank of Tokyo (Holland) !t.V. 
Banque Ftancaisa du CammaraaENfeMeur 

Banque derindochinaet da Suez 
Banque da Nauflks. Schfqmbergar, MaHet 
Banque Rothschild 

Baring Bro th er s A Co» 


Banque Internationale A Luxembourg SA 
8 anque de TOnion Europdemo 
H. Albert deBaryft Go. N.V. . . 

Bayerische Hypotheken-und 

Bayerische Landesbank 

Bayerische Veromabonk 

Joh. Berenberg, Gossier A Co. 

Caiase des Odpdts at Con signa tion * 

Berliner Bank 


Beiftaer Haridefa-uqd Fr an kfurter Bank 



Chemical Bank Intematkinal 


C«tioo«p In t er na t i o na l Group 


Compagnie Financier® de la 
Deutsche Bank AG 

CorroagmeLnxambouigeoise de la 
DresdnerBank AG 
- DresdnerBank International - 

Crm fi t a nstart-BanlofOrefai 

Credit Commercial da France 

Credit Lyonnais 

Richard Daus A Co. Bankfecs 

Crtdft Industrial dTUsaco at da Lorraine 

Cradfto Kaliano 


Crddrt Industrial at Commercial 
Batwa Europe N.V. • 
Deotach-SOdame rik antoche Bank 

Deutsche Girozentrale 
- Deutsche Kommunalbank- 

DGBank . 

Doutectw Gw mnnJi p flrturfc 

DiHon, Read Overseas Corporation 

Dominion Securities 


Euramerica HnanriBris Internationale &pA 

Euro-Latiranteitean Bank Limited 

Euromohifiare SjpJK. ■ 

Compagnia Europea InttrmobiUrO 

European Banking Company 

Umftad •• 

Robert Renting A Co: 
LMted . 

Gafina International 



O toura ntnde undBank der fl s teneic M schen 
^paricassep ’ T 

Groupemant des Banqubn Pifvds Genevota 

Gokhnan Sachs Internationa] Corpw: 

Hard y-S Ionian BankGjitUf. 

Georg Haucfc A Sofin 

Ibero-Amerika Bank 


HOI Samuel A Co. 


industriehank von Japan (Deutschland) 

AktiansmBschoft ' 

ILF. Hutton ACe. N.V. 

International Mexican Bank Limited 

Istituto Baocario San Paolo di Torino 

Kidder, Peabody International 


Ktainwort, Benson 


Lazard FrOres etCia 

Land as bank Hherntafid-Pfalz 
- Girozentrale - 


Lazard Brothers A Co, 

McLeod, Young, Wwr Internationa 

Manufacturers Hanover 

Merck, Ffack&Co. 

B. M at z l ar a a aL Sohn ACou 

Samuel Montagu ACo. 


Morgan Grenfaif A Col 


Nesbitt, Thomson 


The Nikko Securities Co* (Europe) Ltd. 

Norddeutschs Landesbank 

Oatarrei c hfache Underirank 

SaL Oppenheim ]r. & Cte. 

Orion Bank 

limited - 

Pierson, Haidring A Pierson N.V. 


Privatbanken A/S 

Salomon Brothers International 


J. Henry Schroder Wsgg ACo. 


Schrbder. Mflnchmeyer, Hangst ACo. 

Singer A Friediander 


Skandmavtska EnskUda Bankan 

Smith Barney, Harris Upham ACo. 


Socidt* Grind rale 

Sociritri Grind rale de Banque SA 
Sumitomo Finance International 
Ve reins- and Wsstbank 


Westdeutsche Landesbank 

Sodritri Sriquanaise de Banque 
Svanska Handeisbanken 

Strauss, Ttffnbull A Co. 
Trinkaus A Burkhardt 
S. G. Warburg a Co. Ltd. 



Wood Gundy 

Yamaicfu International (Ebrape) 



Published by the Banker Research Unit and now available, this new 
volume describes banking systems and' credit sources in ten countries 
of the Far East These are: - 


Written by experts in each country, each chapter defines and analyses 
the banking system; the different types of banks: the services offered; 
the system of bank and credit control; banking legislation, interest 
rates; near banking activity and institutions; merchant banking; 
investment banking; official and semi-official institutions; export 
finance; the money markets, the capital markets; and a summary of all 
short, medium and long-term sources of funds. 

Limp bound, 340 A4 size pages. ISBN 0 902998 17 X 
Price £26.00 in the UJC. $52.00 outside the UJC 

Your order to: 


Registered in England No. 227590 

r h 

. - 


Financial Times Wednesday April 12 1978 






to operate 

Easier to get to the top 


PUT ON the- market by 'Electro- J nnnni CUP 

10d of Aylesbury is a /* com- T .TnUllLCma 

praterless" controller,, for 

Jnachiue or process control which . ALVECHURCH- BIRMINGHAM 
is simple to operate and requires ' Tataphona Raddi&ft se 4U 
no special skills; or equipment ■ - ■ 

to program. Applications will ■ T * fex ^ 37l2S - . 

b& where the cost of a full scale ■ ''w ■ ■ .. 

computer cannot be jusdfiedi '• _ _ ^ . • ■>__ 

’ The program is stored^ Iff- jT.‘ uprAMimru,™.-. 
a random access memory which. 9 «It I AIWOrKIN G 
can- be -erased at wUl : and‘ jfr' - 

programmed as often aa needed^- VA/r»X#T awAVm-- 

entered shnplr - hr VY CIC|- area . " 
depraving one or other of-two' * 

keys in the same priority aS-v-X ' 
down on the written version of “CT5I VC • 
the flow chart, relay or logic 43 - ** JT' , V* 

Jubilee celebration this year is 
the introduction of a hydraulic 
access platform designed to lift 
men a&d materials into overhead - 
working posUiona -more quickly 
and easily than former ynpr-binp-s 
■The CA 190, suitable .for most 
yehicles of 10 tonnes, pan reach 
a working height of just, over 
87 feet with ' a * maximum safe 
working load of 585 lbs. It 
retains the articulated boom on 
which- thq versatility of the com-- 
pany’s hydraulic platform is 
based, but die principle has been 
extended by a new compensator 
system with an action differing 
from previous practice' in that 
both booms can be made to 
operate .simultaneously rather 
than in sequence. ■; - ' - 

‘“The working cage moves more 

being much more direct thap 
two stage movement ' Most' 
advantages of telescopic equip- 
ment are offered without loring 
the benefits of articulation. -■ 

The side-by-side boom layout 
of the: machine allows: the work- 
ing cage to be at a convenient, 
height permitting the Operator .’to 
mount from ground level. - “ 

* Simplicity and safety rome 
first," says Denis Ashworth, 
technical director, adding ' that 
•70 per cent, .of all Orders afe 
exported and it cannot be antici- 
pated that machines are operated 
by a highly trained service force; 
Most, operators will be .semi- 
skilled, hence simplification and 
a h'igh safety factor.;. 

The GA 190 makes its inter: 
national debut at the /public 
works- and building equipment 


. Tetephone Redditrt 
: TafcxG37l2S 

-.sfe ^«SSaf-Sf®«?-3SSte 

E and . ^“rton urht is com- 

*** , io hR S« pact^weigt^ under SO lb 

.selected subsequently by manual robust enough to take the cbn- 
□Ver-ride of the original' pro- tinuous running and hard- use tn 
gram, w automjtte switth«. M “J? mostwSdW 
and when required. - environments. 

■ In this way . programs can ■. . 

be; repeated ad iOfinitum, . "» ®L?« ^two-stage 

when the booms operate in May 19-27. '• .... 

sequence and the arc travelled More from the company, jat 
i by the cage is very dose to being Dudley, West Midlands D?1 
in a straight line, the . action 2HA. 0384 70180. . 

Places load precisely 

THE problems of taking a fork- 
lift, truck Into the interior of 
a container or trailer for loading 
up are simplified with a "mother: 
aod * daughter” arrangement 
introduced by Cascade N.V. of 
Diemen in the Netherlands. - v 

The “ daughter ” attachment 
has a maximum capacity of 2,000 
kg at a load centre of 500 mm, 
allowing two vertically-stacked 
pallets to be ' loaded simul- 
taneously. The driver does not 
have to leave Us seat He can 
direct tbe movement ... of the 
attachment, which runs on two 
tandem wheel castors and a 
treaded drive at tbe rear, from 

the truck's dashboard by mean* 
of a pair of “ joystick * pontrolj. 

The attachment, called TR£; 
can .- reach. ' a speed. ~of ; 0.5 
metres/sec. Control sigaals are 
transmitted to it through a cahta: 
on. a Self-winding reel fixed 1 to 
one side of the trucks mast 
Having deposited Its load, the- 
unit is reversed back to. the 
truck and re-attached. . : ' 

Four she volt batteries Inride ■ 
the attachment provide power for; 
tile controls, the drive motor- and* 
a hydraulic pump which derates 
steering lifting and lowering 
movements. More. from .Weespeix 
straat 110, P.O. Box 170; 1112 AP 
Diemen, The Netherlands . . V; 

or modified to include special 
movements- or actions without 
alteration to Sic original pro- 
gram.- Tbe company* states that 
A- .npmbcr of machines- can be 
controlled * . - simultaneously, 
Whether or hot they ire carrying, 
out. a different functibiVr.More' 
on Aylesbury 82261/ r 

eSfectively absorb most commonly 
Found welding fume and particu- 
Jate matter at a very high level of 
filtration. The filters are patented 
and have. been designed for easy 
change when new elements are 

Secomak Air Products, Honey- 
pot Lane, Stanmore, Middx, ,. 


Data entry simplified 

TSI International - has' released - entered - data, plus ' ability to 
KEY/MASTER, a- program pro^'ext^act end reformat tbe data 
duct for users of / IBM's ClGS^-fot .snbsequent processing. On- 
system which eliminates user line Facilities are also available 
programming for' most dacato.“page ” through, verify and 
entry applications -‘and gives' change 'data. The system can be 
interactive definition of ,riata -installed i n a few minutes, 
formats and editing ■ criteria, KEY/MASTER requires appro- 
alloynng lay personnel to design Hma'tely 32K of virtual or real 
and ' -test IBM - 3270 ’-display storage and needs min imal pro- 
formats at the • terminal' • and rcessor resources, even with 
begin using them immediately, heavy use. 

The iproducf provides' .a.- fail- TSI, 19. Bedford Row. London 
safe - database ter - storing WC1R 4EB. 01-405 7304. 


- \y; _ _ h 

Improves signals 


Analysis on small machine 

DESIGNED for use with strain The housing is a tough,- .cast ASAS structural engineering market for engineering organ isa- 
gauges and !°ad cell# used in aluminium box that is! /Water-- package marketed bv Atkins^ 115 wI * their own smaU 

fti 1 1 hrirl as MfifiaiivahAnc io n nrrtrvf anH fhnt WlttohlA Pnr h fic U lia ^ J . 

full bridge configurations is a pmof and thus suitable &>r hostile machines. 

millivriH ciirnal amnKAor f mm nmrlmrimantR AnnllniHniM. bw Computer Services for stress t>„_ 

millivolt signal amplifier from environments. Applications are ■ , p e services tor stress j^ endel p 9 | mP T and T rtttmi 
Transducers (CEL). likely to include. Offshore analysis on engineenng struct chose Prime . because of its 

Mains or battery powered, tbe engineering and marine services, turns previously run on very large flexibility and cost effectiveness, 
unit provides a dc excitation vol- industrial Weighing and blend- computer systems because of its «i*b e po we r of the Prime 400 
tage for the transducer or load inR systems, process engineering h oi^ ee S_f onVerTed f ? r ^ became apparent during feast 
cell array and provides the cus- and alarm monitoringl. • on a 256K Prime computer by bilitv studies 

tomary 0 to 10 mA, 4 to 20 inA, irnnum namsifan QJirihn tho co^ su iti n g engineers Kendal Conversion to the 400 took 
or vof«« output, of 0 to 2 or Sr Pl ^ er “ 4 Trm ° n - _ . Reodefpatoor and TrtZ Zt 

tomary 0 to 10 mA. 4 to 20 mA, ~ • a annn 

or voltage outputs of 0 to 2 or Tritt ° n ‘ Rend“ei Primer and~Trlh 

0 to loV dc Since the device non-lin^riWhySerSs This ^ time ASAS has man-weeks to complete. 

^-vortod for a mini- Mo re from the coo^ 

. This is t 
tieen ebn 

sSa*?o d e sjmijsss. r r - Thl8 opena ap a new 01 

high level Interference-free sig- operating range -of lO. to. J nMM| | M , rAT . nMC 

n»ifl back to control nanels or deg c * VOMMUNICATION5 

This opens up a new 01-928 8999. 

consultants on 

nals back to control panels or 8 • - ' 

other equipment are assured. * More os Reading 583033LV,7 


Records the trace 

Z , ^ f S ^riEVE LOPING' 30 watts, a feeder faults or excessive tern- 
■- tfeWncy - modulated fixed perature rise, resulting in a vezy 

• 'station:, transmitter, for base k'f* 1 degree of rehability. 

'■ urifK’ wuini.. In the event of the antenna 


eliable transmitter 


Shackman - Ten hoods are a\ 

■ ha&__,_beeo cuite ^“ g or 

able -existing equipment rupting work; 

s£d?wVSw s 

fSopmeot For permit moondog a prttw? »“ C^MtaXM Iw'SS.rite 

of the CR-9, of Which several spacer body - is fitted to the SniSfiSS? fttai Jia and S "" CB4 WP ’ Cambrid ® B 

thousands have been sold since camera and matched to one of worn antenna and 61222. 

its introduction w the late 1960s. 60 custom-made adaptors cover- _ PDOrPBBBMR • m. Hfl ATITD1AI e 

Apart from using modern pro- ing 27 different makes of ’scope. “ r ^VV*!» a,nu ™ IWM I iLKIALo 

duction and moulding - , tech- Quick loading Polaroid black /7 I A avi - nvw _ 

piques, Shackman has employed and white film packs are used. A ll i’y A TIJI TI^IOTI 

an Improved lens and shutter More from the company at ^ T A-iAptllUlUU 

(eight speeds from one second Mineral Lane, Chesham HP 1NU, i • , . 

'and f3. 5 fens). Bucks (0240 4451). COUIBreSSOr hv nmiYIDIlf 


Glean air 


Fast access recorder 


by pigment 

IN CONTRAST to other types * * o 

where the filters are installed _ 1_ 
externally,- adding to the com- |||3fVcr 
plexity. of the .installation, a new " ■ 

INTRODUCED by Racal opens, the machine stops and range pt medhim sized rotary FOSCOLOR. sDecialisi oiemant 
Thermionic ia a tape recorder awaits the next signal. To screw compters, introduced by . ^ . ‘ r 

employing Philips pattern repeat, the operator presses a Atlas Copco, incorporates the ^ coinpa ^ 311(1 “ ember 01 

cassettes, specifically designed button to return the tape to the filters withih th& unit. ^ roseco Miosep Group, is 

for fast access to various start of the last message, when ‘ Based on' the. company’s GA planning a major expansion. 

. essa°es on the tape.- - it will replay. In addition, each compressors, the Instrument Air Due to pressure of demand on 

Called Callstore, ir is particu- recorded message is indexed on Pack contains two Domnick lts Bicke rshaw Lane Abram 

larly suitable for telecommunica- the tape and given a number so Hunter filters complete with auto . , . f . 

lions centres where immediate that the operator can retrieve it drains and a pressure differential Jj^San) habere factory site a 
replay of land tine or radio at will. gauge ^ indicating when the filter. lar ^ e extension to the existing 

emergency messages is a require- The tape transport is 19-inch elements need changing:- -. building is to be set up. consist- 
nient It might well be used as rack-mounted while a remote con- The compressors are suitable ing of offices and laboratories of 
a fast access back-up to a normal tro! can be up to 100 metres for blow moulding, spray paint - several thousand square feet, to 
lone duration recorder- ." awa* io an operations room. ing. process control and tastru- reieauw more space in the factory 
the unit is activated by an More from the company at mentatkm. Qipa^ties range from ^ increase prodnetion capacity, 
incoming audio signal or by a Hartley Industrial Estate, Hytbe, 256 cubic feet per minute. ?T 0 ™ 

contact closure. When the Southampton. Hampshire S04 Atlas Copco, P.O. Box 79, j- — 

message ends or the contact 6ZH. (0703 848181.) SwalJowdale Lane , -Hetnel -r 

Hempstead, Herts. KPS' '7HA. • - - - _ 

^ . , , - mm 1 -'-' ; • j't thp ir\ 

Sound level meters 

ouuuu icvci incLcta ^ucKs away 

NEW models of sound level and 30, allows on tbe spot before ' •« • 

exposure meters have been put and after calibration to meet in- fi-no. |>|| . 

on the market by Ardente In- dustrial regulations. More on IHv VU’. • • 

dustrial Services and by Ca6tle Windsor 63142. « . ftoATENG suction device. 

Associates. . ■ The Instrument from - CmUc 

Ardente is offering the Pulsar Associates can be converted be- Se^SsOntial component of a. 
Instruments 85E made in the tween industrial and precision !" a n^Sif.cohtkned s euarSion 
U.S. This can measure levels be- grades by means of a range of 

tween 85 and 114 dB and will at plug-in microphones and signal vJSt^nSer Palace ' ferte ns! 
the same time (on an adjacent processors- Known as the CS SW1P. lRL (222 67331" 

meter scale) show -the permis- 182B, it has a total coverage of - -Made bv Hyde Products- fa 

sible time of exposureto the 20 to 150 dBA. with linear meter J Zimmile) the*un5 

level measured. Frequency scale and 30 dB display range. Han( jieS'tiquid systems contain- 

I Wo rld 's V 
J largest range 
r of Electric i 
Submersible I 

Technical Manual from 


response Is 20 Hs to 10 kHz with By plugging in. for example, the SO to 250 gallons, providing^ 

•‘A’* uioiohtino sinH Klnw mpip.r (IF 1S1B octave filter, the unit — • - - .1 •: I 

“A* weighting and slow meter CF 191B octave filter,, the unit .SS& ■ ' te® 

response tn accordance, with BS can be used to analyse the re- fi.;_ mer devices 

3489 and DEC 123. Accuracy ceived . noise in ten frequency : 

meets BS, IEC and ISO standards, bands extending from 31.5 Hz» '• 

i An associated calibrator. Model to 16 kHz. More on 0723 66348-1 I' j>lAi>4Nln ■ m 

’ - Talat 37318 

> i 




LOW-COST 10-channel radio com- 
munications for commercial aod 
civil users is offered by Racal 
with its new "System I0" 

This is designed for fixed. , 
mobile or transportable HF i 
communications systems where | 
allocated frequencies are un- 
changed for long periods and 
where simplicity of use and 
maintenance are of prime impor- 
tance. Main applications are 
seen in private networks, such 
as those used In offshore oil. 
civil engineering, and construc- 
tion industries, and in civil ser- 
vices sucb as meteorological 
offices, ground-to-air and ship-to- 
shore services, international 
police networks and newspapers. 

Tbe equipment is designed for 

system reliability and is unique 
in its class in that the 1 kW trans- 
mitter is designed with active 
standby facilities. Should it be 
required to remove one RF 
power module for maintenance 
the transmitter will automatic- 
ally continue to operate uninter- 
rupted on half power. 

Racal Communications, West- 
ern Road. Bracknell Berks. 

* r ftasands tf types arrisK^ 


LONDON 01-561 BH8 ABEftDEEN(Wi:32355/Z 

BtffcEMERGENCVNUMKEROl 6373567 Eri.409 




hi -‘v. 



National HaB, Olympia, London. ' ^ 

T Riesday iSthApriltofHday 21 st .JgrillB 7 S 

Admission FlticE ~ Ucketi tvaHahle at<foor. 

IjC: * 

^ k .. 

4' _ 

,-•**>* ✓V • • 

■ ■ .*< •*, 

4':V“ '*• * 

*& ** * ... .*r:% * .* ' % * JaSelSxfv 

* <v 1 rA^S^EwKlSaP 
h,,,> .. , - • v, '/. ' • : X'jWJTi 


P, 1 *} 

Ml Healey’s done his best. raw materials, new premises. 

The man in the street has an extra few million pounds ■ It will also buy this country an industrial growth rate that 
in his pocket. - . isn’t the worst in Europe. 

And the Chancellor’s hope is he’ll spend it on British ’ It you feel you can put some of this money to good use, 
goods. contact your local bank manager. 

But that’s only half the job- 

industry won’t be able to produce those goods unless 
it gets direct, help now to gear itself up. 

Direct help is what Barclays are offering. 

We have millions of pounds to buy plant, new- stock. 

Or if you prefer, write to Christopher Brockbank, Head 
of Corporate Business, Barclays Bank Ltd., 54 Lombard Street, 
London EC3P 3AH. 


tr ■ 


The Management Page 

Financial Tunes 'Wednesday Apnl 12 1978 


THE guidance papers on the 
employment policies which com- 
panies should be adopting to 
avoid racial discrimination in 
the workplace are to be issued 
bv the Commission for Racial 
Equality daring next- Tew 

weeks. . 

The 1 ' papers, which will be 
followed Ui about a year’s' time 
by a mpr£ formal code of prac- 
tice, .will present- a range '.of-, 
suggestions. to. hap ensure that 
ail employees and potential, 
employees -‘fiave equal ; 0 pu 6 in 
tunities, -' Tegardles's of- ethnic 
orjjgin/ ' - . 

‘they will identify a number 
of key areas— fand key people 
— to. -which, and to-, whom, a 
company should -give' special 
attention to ensure that dis- 
crifninatiOR is avoided. The 
former ' will include recruit- 
numt advertising.' allocation of 
duties, promotion and training, 
while the latter covers from 


, ‘ foan wifo . long-term langipga 

personnel staff to receptionists 
and shop stewards. 

Companies will be urged to 
allocate responsibility for eqnal 
opportunities., policies to- a- 
specific member • of manage-, 
ment, and tlie importance of 
gaining the anflerstanding and 
agreetnent ofshop floor repre-. 
seniatives will be' stressed. 

Perhaps more controversially, 
the Coramissioii- will recom- 
mend that managements check 
the progress ^ of - -their equal 
opportunities efforts by keeping 
records of the ethnic- origin of 
employees and -job applicants. 
This is in line- with the - Com- 
mission's policy ; towards - hpus- 
irrg. education and other areas' 
where discrimination might 

arise. - 

Many of the issues to be con- 
tained in the guidance papers 
were discussed during q recent 
conference bn “TbejBncfolems’ 
of Supervising- a- Mylti-Racial' 
Workforce* held Jut -the] East 
Midlands /Engiifeerin-g' kEbt 

plovers’ Association ■ manage- 
ment development and training 
centre./ It. was .- the £rst 'time; 
that lhe* assdciatioD. wTneh. is 
actively ' involved in i training 
issues., bad arranged a con- 
ference on .this. -subject, and 
some of the regacnV best-known 
employers — including T. r. 
Raleigh, Rolls-Royce and Thom 
lighting’^- were represented. 
Among the delegates -were 'not 
only ^ directors', responsible for 

shaping, persqanel .policies; hut; 
works managers mm- others who 
have the .task of Cazrying' them 
‘out . "...V • ■■■*:. ... .. - • 

Since -efifeetiva s iy>mpi»nH a- 
tion is tiie Key Sj--» many sub; 
cessful industrial rtiations poli- 
cies.- one -of. thg Teeing themes 
nf the.isw&rfinccrw^-the role 
of language. sbn» offoe most, 
basic problems involved in em- 
ploying; a ’large -first-generation. 
immigraatJ- workforcev like the 
need for. supervisors and shop 
floor to- cotnmunicate. through 
interpreters* are perhaps not 
always -apprenated ppTess they 
have ■' been experienced at first 
hand., v V-". : - 
•: Deiegatesrwece'introduced-to 
the services; of the Leicester- 
shire industrial Language Unit 

yfoidv like similar units else- 
where in.- ‘the country; ’offers 
-companies' *a- tailor-mate-' funp; ' 
•tional language tri m tag- pr^-. 
gramme : for their employees. 
The unit'director^RogerMunaSy 
apfi his . Staff began' with- an iir- 
vektig^foir of the specific needs 
.b^a company, whacptwould vary ' 
according to '.the- ethnic: ;ba&- 
groiindof employees, -wOrkprb- 
cesses and other factors, and 
'prepared jCOuise material on. the" 
basis bf .this wiryey - . 

Previous experience, says Mr. 
Muuns, has shown that language 
training is. nrdst Jtikely' tK bh 
required in .such: areas -as', cod- 
ing with nondxuttLne instruct 
tions, quatity control; grievance 
procedures, -sbcial^sldUs, heaHfr 
and safety and' record; keepings 

„ .. , r jni cation is 
Spn^ o of tfisn. 

ie ; of tile: most common pnm. . 

As a back-up to its wprk ampag increased production ■ . gad . plaints : was . about difficulties 
the immigrant workforce the greater job Ses’bilftr'^. aTMS® retoS' 

unft also runs seminars . f 0 r “geh®lral imprevatohat :; «f : pe^ oSs«mnt»s^of mahy- -Asian 7 
English staff to give (hem : a : W and industrial lections,? % «jbaplnsB^>:> .. !.* / * .- iw 

bette nnderstanding bf *tiiQ,r: A. National Centre iotlmtos? jt T^e-.JwasI- .-delegies .were- 
T ® 1 j 8 * ous Wa l Language Trai n i n g," "io r - told/ no / umveKafif^ppjfiable 


-V r *v.^ UJ- «V0IQ‘ OI8> 

.The . unit lists a- range , of Among • f he companies wfodti .crimination waaTo ; RjrgeL .tfiat ' 
benefits which, it ^ believes, haye . used the r iodust^x^^.^f . th,eir employe^ Vern' 
conld await, companies which language service- since it Was immi^ai^, “ You do not-Iiavi 
take a positive' approach- to- established, j” . r be^'bteribactyq^ 

wards language training. These '■ Many Sf the )ssdes r^«gd dur-3?^ 1 ^ / employee*’!- said. .one . 
include a decrease in labour ing question time at thelT&st speaker from- the Qrannissioxi. . 


.'A-; ’ 

r •+• ■“ 

include a decrease in labour fog question time’ at thel ”• 

turnover, elimination of the Midlands Engineering Em-’/ ine-lAw^ simp^aay^-that^^ 
n^ed for interpreters,. Beftef/ployers Association conference slmitidtreat-peotfle equatly'.” ' - 
record keeuins. imDroved.train-^ mnii> ' • '-* -c.'THr . ' .-y-, 

Pike ’ 



record keeping, improved. train-: were concerned ; with?’ more 
ing potential, the-- possibiUty>of ^immediate ' ’day-to-day/ 

With inflation still running at just under ten per cent, 
per annum, and unlikely to drop verj' much over the 
next" lew years, the accounts published by- companies 
remain seriously distorted. Real profits are not nearly 
as great as they appear to be, and the values at which 
many assets appear in .balance sheets generally bear 
little relation to wbat they would cost to replace. 

So the need for a generally accepted method of 
adjusting accounting for inflation is as urgent as ever, 
though the debate has subsided somewhat in recent 
months. This has followed the introduction of the 
Hyde guidelines, which call on quoted companies to 
publish three adjustments designed to give some 
indication of their real profitability. The guidelines 
are extremely flexible, and most companies which 
have reported since they were issued last November 
have not observed them. 

At the same time work is still going on in Mr. 
Douglas Morpeth's Inflation Accounting Steering 
Group on the development of a longer term solution. 
Mr. Morpeth is thought to hope something can be pro- 
duced before the end of the year. 

By then feelings may have mellowed a little. And 
accountants and businessmen might be willing to have 
another go at getting an agreed standard. In this 
article William Baxter, the father of academic account- 
ing in the U.K.. the pioneer of inflation accounting, 
and formerly Professor of Accounting at the London 
School of Economics, argues against the path followed 
in the Hyde guidelines. 



strictly for le mmin gs? 

• * v be -tiie mirror-ifliage of .that for ^S^pposs farther that inflation 
r ■ “ -efoiOss -assets: a- ^&Rersi(; index. has;nibWed away fb e JPs .valate * 
■r\ v factor would be- applied /to, die .by £25 per- rent ' Tier propria 
'octr liabilities; and tiJe-.resnit etOTs r 'gafo - frOtfi owlog £40 -in*'* 
shown as a gain, Alas, tbe Hyde fXD, so^OTmmDiMeiise eoluiim'' 
: ■ . report suggests nothmg'-of-t&e-'- ( ^ad5s^> : pr6fit: : (3) -hokst 
i sorj. Its adjustment. i^>- tbr-.iBsteiicJ to the^^arlieil adjost- 
tupus bit of -.pedantry, . that - nfoqt OU£ss.-\"£:- ; - .* 

alfows.- for only part .oL th§.gainjj'. ' ^proj^on' if: aerHaWli. • 
cts: indirectly by OT^i)-,tifes: tO' noiWBoney assets it- 


; fo&tiie time-lag adjustments vOf*- 40rl29f so*-^e -.gearing .Adjust--" 

peri meot is still needed. So its- 
methods are “guidelines” only: 
firms that want- to try other 
cures are free to do so.. Some 
accountants -are protesting that.: 

a “standard” should not be so , .... . - . - - 

elastic; but, in our present ing CPP. but (unfortunately, in If accounts ignore this truth, increase is now dye ■ per een^ wc.lwKirrous md open to -wintew- 

ignorance, flexibility seems my view) then veered to C-V. they will go wrong in all sbrts physical expansion. ' V^hat : s “? ul “ have ^ d ^ C£S ^ n >E; lead t& many- 

wise. Hyde leaves the door ajar for of queer and perhaps unpredict- happens to the Hyde adjust- sem , v?as . 'wq.,c«.anpiiiMf». th.w it must under- 

Two -of . the three proposed all “appropriate - methods" able ways. The most obvious ment? ' * v ”° T ' n " n * nn * * A ’ 0+ ^' v •*—*.«*- • 



adjustments aim to make good '( which presumably include circumstances is when the 

the “time-lag” error, that is, CPP), but favours CV.. inputs’ prices fall (and. as we 

the charging of low, out-of-date The physical’ concept sounds have found, even during ihfla- 

historical costs (HC) in the plausible, because replacement tion the raw materials market 

profit and loss account. They cost is clearly the right test for can sag, and technological tin- 

correct cost-of-sales and depre- another kind of calculation provement can cut machine 
ciation. (Why not also the costs (costs in a manager’s decision prices), 
in any capital gain calculations, budgets, when existing assets 


... ./ . establish this point witSouf the -state, / gjejrtitig/’ giii^ jn; 'jirms * 
*’ * 1 ‘ ~ \- to'>think';about:wb6sfe:ti^e-Iag adjustments'. 4re. 

.350 x loo 

correction " . =-of the 

The Hyde proposals are much restricted to first-aid; they do charges, we must choose be- tained, not if it still consists of 
less bad than their predecessors, not attempt root-and-branch re- tween two rival concepts of the same number of tons or 
The improvement takes two form of the whole account, but income, that is, between charges gallons, but if it will generate 
forms: merely add three extra figures adjusted to either: the same future earnings: and, 

1 — Simplicity. The new pro- in a supplementary statement Current purchasing power when inflation distorts our 
po'sals deal only with the one 2 — Flexibility. The Hyde re- (CPP). This maintains real measurements, real earnings 
part of a company’s report that port is tentative in tone. It capital — command over th^rgs- (that is. ability to support the 
inflation harms most — the profit concedes that there are differing in-general — by using a general same standard of ' living) are 
and loss account. And they are views on reform, and that ex- index factor; or what matters. Therefore adjust- 

which suffer from the same will be used up). Hyde reports example of stock.— 

time-lag error?) Adjustment But this does not make it in trade: ^ -• He 5 e . . .. 

tackles the fall in the value of Tight for income Measurement Index £ undercharges, lowers- them srel^ 

monetary items. All three bear The value of productive assets Opening stock ... 100 350 raises ' profit-* by-: 

some resemblance to the lies in their ability to earn, and Average price... 110 ‘ *19 winch is award. 

Brazilian system, which has not simply in their physical Closing stock ... 120 540 unless accountants con me. 

worked smoothly since 1964. attributes. Owners should The suggested adjustment is: financial and political _ worlds 
When we try to correct HC judge that their capital is main- 

slightest need- 

-.=. r-. 35 \ charges for depredation / antf - smal l, ..for ' example, - property.'* 
.. cost-of-sales. Th'ere 3nay-0fe v a companies, - investment:- -trusts’ 
. case for postponing the -gain's and. insurance offices. 'Die ^aln- 
100 — 1 IO . recognition till the tiah flllieffiwil!- look high in firms' whose de- 

540 x — inn *" r are repaid; there is no tasefor;' pitciStion -is based od old costs/ 

iUU • • dragging ‘ in maduniry/’ and.and low ’ in firms (otherwise ’ 

Test this assertion with the Total correction {a ^?redit);(l9) stocks. identical) with new foichlnes, ’ ; 


350 x 



540 x 



Total corrective charge 

In the league ot big Finance Houses -we 
probably rank sixth. 

When it comes to service, however we 
honesdy believe we’re right at the top. 

All our 100 offices around the country are 
started by financial experts. 

People who talk money and sense at the 
same time. 

People who can give you a helping hand, 
butleave you tree to run your own business. 

Our portfolio ot financial services is 
i repressive. It includes both instalment credit 
and leasing plans for vehicles and industrial 
equipment; commercial, industrial and 
personal loans tailored to your budget and 

a wide range ot insurance services. 

And, ot course, when you want to invest, 
rather than borrow, we have attractive savings 
and deposit account schemes. 

Our assets exceed £300 million. Butwere 
also a member ot the Standard Chartered Bank 
Group, Britain’s largest independent inter- 
national Bank with 1500 offices in sixty 
countries. Their assets exceed £S,500 million. 

So it you like the security ofdealing with 
part of an international organisation, come to 
Hodge Finance. . 

Orif you’d rather do business with a 
friendly office in die High Street that’s Hodge * 
Finance, too. 

To introduce yourself to the helping hand 
of Hodge Finance.getin touch withRoy 
Wright^Development Manager, Hodge 
Finance Ud, Cardiff. Phone: 02Z2 42577 
(701ines). ‘ ; 

Or contact your local Pledge Finance office* 
They rein your phone book. (Tn'East Anglia, 
look under Garfield Williams).- 

Hodge Finance 

A member of. 

Standard Chartered Bank Group 


into accepting &' Jie^d^L-win- 
. . . tails-you-Tose variant. ' qf' ./ilie . 

35 Hyde role, foe reform viUiin 

some cixcumstances prove un- Balance sheet' 
acceptable. The reliable adjust- Plant and stock 
4 r-. ments of- CPP would be- far 
“ better. ■■.••• *■ • Net liabilities 

• However, rt is the proposals 

'gQ, for ' "dealing ..with ' hionetafy ' 

items that. aid^iUtely .to'bilng . .. ■ !-. - 

really serious trouble ' fod loss account 

These., compnse two very - Profit 
different methods, one for firms ,*hne-(a g adjustments’ 
whose ^ money assets' e'foeed 
their ; liabilities,, the other- jar 
the highly-geared Sons’ whose 
liabilities exceed their ,, money 
assets. The firstyfaetho^tsey^s 
sound, foe second* baa.. ’ 

Money assets, (cash/ debtors, 
et&) ' lose--* pnrdisCsiftg' power 
during inflation; an/ any respec- 
table reform of income ineasure- 
ment should recognise this real 
loss. In times: weff- stable prices, 
loss from bad debts provides an 


* : -C); - ; ’ • O-X <- 

.. ' ' - .C o mmoTi ■ } 
’’ No ” s " sente* 
adjustment' at^intmtnt 

; i .. a *■ 




». ■ y 

'• A 

Hyde. T 




r.Z, • 


There are some finance houses 
bigger than Hodge. 

There are none where yoifll get 

a bigger welcome. 


fCost' of sales 

XV* 1 - *'^v 7 »■ • 

G&ting adjustment' ’ 

psi . r .- 

'■ r 5S u 


' 6" * 


. _ 

— - • 

•?: • ■.-••IS- 



're: 1 :^ .xsi&k-' 

>r— -.'ur: 

r . •. • • 



■" 5S 


Similarly^ k inflation .cuts the -"Tlie method'^ .attiittion is. 
analogy; the *two -forms ' of loss burden of - Joan, the- ^gain that it is i^mservatiye: the ttine- 

call for much the same treat- depends nn lhe sizes of -the j a g a djnstoents riap alow roof 

V* •: 

ment But how is the loss of pur- 

. loan and - the- inflation. . "The ,,^,'+0 the ^esnue win . Ibis 

chasing power to be measured? other adjustments' have nothing ?,• . ,® e * n ?*' -?V 

Hyde tells us to use “an appro- t0 do with. the case.' * nrier.on t- the misleadingly high, 

priate index.” The most appro- jjuf th4 Hyde report' wotfli profits -that crude CPP gives to’ 
prlate index is surely the one have us first revalue the dssets; some highly geared- companies 
that best shows the decline of ihen calculate “the proportion (for' example, Grai^TtfetropoJ;-. 
the pound in the owners' eyes, 0 f : (a) the net* balance- of-mone- tan). But' ^cimservafian could be 
that is -the general index. tary liabilities, re (b) the net ariiieved more reali^rally-by 
The Hyde adjustment applies balance of monetary liabilities postponing - full recogmtion-jjf - 
a straightforward index factor plus the - equity - share capitih sain- on long-term liabilities -ull- 
to the whole of the net monetary and (revalued} reserves”: and repayme n t (mid then treating it 
items. This seems the right then apply "this proportion . to 35 an . extraoramajy item), 
course, and a vast improvement the . cost-of-sales arid depre cia- We must hope that companies 
on the Sandilands report. The tion ' adiustraents: and filially -will' take advantage of the 
only doubt hinges -on whether credit L tbe answer. - -.-•••* report's flexibility, -and- use iw- 

the whole loss should be charged Figures will illustrate' these permitted. '■ alternatives- rather: 
at once, or whether loss on convolutions. In the table, than its favoured methods. The' 
&ny long-term ■ Items should — column ‘ (i)' gives ordinary latter Will produce -indefensible, 
like fall in the value of land, accounts (2) and. (3) reformed .statistics, -and- will ^discredit’ 
‘etc. — be kept clear of current versions-, ’(!> shoves .'assets of. accounting disastrously. Influen- 
profit until realisation. £120, net liabilities £40, and tial backers of Jhe Hyde report 

Next take the converse situa- equity £80; uncorrected prefitiS bid us .cease' carping, qlqsp- 
tion io which liabilities exceed £55. Suppose -suitable time-lag ranks, and advance in unity- - 
money assets. One might reason- adjustinents amount to £15: this;- Maybe lemmings say tbe same- 
ably expect the adjustment to is deducted in (2)’ 'and (3);1 as: they near the diff-edge; 

•y .m.' ’ 






We hold a lease In central 
London of which 950 years arc 
still to run at a peppercorn 
ground rent. We want to put a 
penthouse on the top floor of the 
building. The freeholders are 
withholding permission because 
of potential damage to their 
reversion. Can they withhold 
permission? What possible 
damage can there be ■ to a 
reversion In 950 years* time ? 
While we can only advise tenta- 
tively in the absence of full 
particulars of the covenants in 
the lease, you should be able to 
rely on Section 19(2) ' of the 
Landlord and Tenant Act 1927 
to enable you to carry out the 
proposed works even if the land- 
lords refuse consent if (a) the 
proposed works constitute im- 
provements and (b) the works 
are reasonable works for that 

You can dispose of the claim 
that there Is damage to the rever- 
sion by offering an undertaking 
to reinstate at the end of the 
term. It would be wise to consult 
3 solicitor. ■ 

th^ overdraft had been' paid - company-have, such a claim. The. 
off but no money was left in. " shares were merely- used . as a 
the company except the afoTe- -means . pf controlling share- 
mentioned shares. As regards. - holder's - raising money to lend .- 
the money owed -to foe 'Other to the company, and it is only the 
director, has he any claim on cash lent ify foe company; which 
these shares? .... can be considered in settling 

We emot 

out .knowing, the full -details of ■ f • 

each Joan transaction -and of the No legal . responsHOity con w 
arrangement with the merchant, occepteif Try. the'Fhwncio/ Times 
bank-. It seems, however, ; that for the antwers gpven in-- these 
the director who did not? make columns.. AU inquiries will I* 
the share deposit has no claim: -answered • by . post • as soon as 
on the shares, tior would the -possible. ? •.<.*' ‘ 



Money owed 

A finance company -has two 
directors, one of whom controls 
it. Both directors have made 
loans to foe company and in 
1974 the controlling director 
made a further loan in the 
form of Stock Exchange securi- 
ties deposited with a merchant 
bank against which (he com- 
pany could draw.' By last year 




V . • • 

: Only National flies . . ’*.> : / 

non-stops Heathrow-MiarTP- 
Tampa * and onwacds . .✓ *' v> 

’seven daysaweek.. 

Americas : 
sunshine / ;/ 
airline, -n/n!'; 

• •• . • >>■#}• .'/- v. 1 ? 

v> ^>- , 

** *• * 

■ ,tJ: ■jtftne'Jnt&to - 
! v •••;•■ ririUeSsdV'i 

; • : ; .Contact ^rtga^t^Qg.. V. / . 

’’ >LuiaarfAufincJi»&T'iiWNpwlWw*caM»*f B " r »b‘t J '-.^ 1 ^ 

:'i • , 

S *" 


>.V % - 


. '.S 





■ uuuuc i 

: - .;• I® 8 tax-cuttmg Budget yesterday Mr. Denis Healey, Chancellor of the 

^.-uJixaiequer, said he believed that his measures could encourage fnrther 
: ™ pay settlements and a cinfinuing fall in the rate of inflation. 

ir 3£« c stressed that special importance had been accorded to the needs of smaller 
1 ' Jjusmesses. ' ; ■ ' : 

i : ' *2 ?! £. hq1 ! plusw earn « over six tn which the Government, the 

’.••■ v, toe lMimtrial world had found or seven years. - TUC and the CBI committed 

- yews . by far J? e “ That would add to the prob- themselves afresh IjS month 

Boosting industry’s effort 



- ‘ V- 1 f A lS?*l to d®“V wr oW " ^S D °Sm “ 0ur main job now is to carry 

- .. , he world into the deepest and “The Government's aim is the industrial strategy down to 

. : . >host prolonged recession since therefore to combine net repay- manSere and Sere taTndE 

ThlrHw combin'd with u mem of debt ye»r by yecr with "di!f componills pfi 

r : ; .unprecedented inflation. new .borrowing tn spread the throughout the country. P 

! ’,,15 toaturities - ’ “I hope the whole House will 

M-ularly difficult for us in Britain endorse these efforts. The 

vecause we entered it with our .. ..m mi nni future of our economy lies 

_ ^V® 01 5 m y hadly out of balance, a KCMVIllBIlt ' ultimately in the hands of those 

Vowing deficit on oar current - •'«••*■ * . - who work in British industry," 

.iccount and severe inflationary onrlv • Mr. Healey said. 

■’ ! 7 - > ”^ UreS ' . j “ If industry is to become more 

X * our ye a *s of painful and “ As part of this policy we arc competitive and unemployment 

“ : limcult decisions have now got now repaying large amounts of is to fall, we need better product 

economy into much better de bf ahead of time- In January design, better marketing, more 

“ ' ..'-*alance. Our current account has i announced the prepayment of efficient use of plant and 

•- . “oved into surplus. Our financial gxbn. -of our drawings from the materials and more investment 

/ £;• 'i? matron has been transformed, international Monetary Fund, in new capacity. 

.. -ne year on year rate of inflation Arrancen>2nts for this payment “The main responsibility mtwt 
.V well into single figures and have recently' been completed, fall on management and worfc- 

till falling. Interest rates are “I can now announce that l force in the individual firms and 

below the level of four years shall be arranging -to prepay a plants. But Government has a 

■ =^.go. The money supply is under further Slbn. to the Fund this responsibility for providing an 

iTm control and we have , except year. This further step is made environment which encourages 
ionaily high reserves. possible by our own improved their work. 

“All this is reflected in the position and we -.hope it will “The Government will there- 

- act that the fourth quarter ocf assist the IMF to’ help other Fore continue to support the In- 

- '.'Mt year saw a rise of nearly 5 countries. This should be a du stria I Strategy through in- 
. .. / er cent, in real personal income useful contribution to the con- dustrlal assistance, training 

fter tax and national insurance certed approach to. world prob- schemes and the National Enier- 
s-the biggest quarterly rise for lems to which we have com- pris c Board and by helping to 

- ":■• early six years. mitted ourselves. . provide a favourable economic 

- "But this transformation in In; addition to these IMF pre- climate. 

-r- ; ~ ur financial situation has not payments, we have since Oclo- “Moreover, we are now giving 
■_;et been reflected in an adequate her repaid or arrapgeato repay industry priority across the 
rawth of output In consequence, ahead of lime Sion, of pnvate whole range of Government 
. "... ’"-nemployment remains intoler* market debt . . policies, for example in educa- 

- bly high, thnngh it has been . “Thus our repayments ahead tion and local planning." 

- : filling slowly since September, of time, made Or ™“jy 

is the first purpose of this planned, now total B3bn. . we 
. - -budget to encourage a level of shall also repay a further Slbn. I email 

..-.■^'.■onoralc activity sufficient to get in 1978 on the due dates as other Jaaasaia 

’ - *' nemployment moving signifl- debt matures in the ordinary v • 

mtly down. But like all other was 1 . • DUS1H6SS 

~ inntiii — and more than most “The other part of. our policy 

- we cannot isolate ourselves la to make progress . with new Mr. Healey went on: “ i 

The small 

- we cannot isolate ourselves is to make progress . wilfli new Mr. Healey went on: I standards and personal consump- 

AS^rMSw. ora the rest of the world. And borrowing. Since last October ben eve that small businesses tion s h 0u hi both rise sub- 

* 1 ;re the outlook still leaves much we have contracted new loans bav e a special role in improving s tantially 

be desired. totalldng about $630ra. from the oirr industrial performance. They “Private investment in manu- 

Two years ago it looked as If European Investment Bank and n j*ve always been a_ prime source facturing industry, which rose 
, C:~-r 0 Industrialised world was the European Coal and 1 Steel ^innovation m British industry, about 14 per cent, in volume last 

a-.i nerging from the severe con- Community. The development of small yea r, is expected to show a 

action of activity which • - businesses often produces more similar increase this year. Public 

... “V ^ v 

i-'raJdic Mmsficld 

Smiles from Mr. and Mrs. Denis Healey as they drove to the Commons yesterday with Mr. Tony Battishill, the Chancellor’s 

private secretary. On the rear shelf is the famous Budget box. 

case, for example, with the fore- a year in which the money supply shows an increase of 1 per cent cent, of GDP would be no higher about 400.000 jobs or training 

casts which the House has in Britain, as in Germany, was in the inflation rate by the than that for example of places by March 1979. 

instructed me to provide. But substantially increased by inflows middle of 1979 even assuming Germany. “The Government is also 

some trends are fdirly clear. of foreign currency— a factor that earnings increase only half “In fact, the PSBR for 1977-78 making available further sums 
“Now that the inflation rate is which we touk action to correct as much in the next pay round as forecast in last year’s Budget in 1978-79 to expand other pro- 

stabilising at a level well below last October. as is likely in this round. was exactly the same as the cur- grammes which arc of particular 

the increase in earnings, living “Earnings in fact will be the rent forecast for 1978/79— £8! bn. social and economic importance 

_ key to the inflation rate next 

Monetary year- Although earnings have 

1 A J increased in the current round 

i-nriTAtr far less than most observers 

laigclS expected a few’ months ago, they 

„ . are 'still growing faster in 

"For the coming year 1978-79, Britajn ^ in most of ^ 

llowed the increase In oil 
ices. But that recovery proved 
jrc sluggish than expected. 1977 
is a disappointing year for 
arly all the world. -Economic 
owth in the OECD area was 
>11 below the average- rate 
tained in the 1960s. 

New York 
bond issue 

at this time. Within the social 
services, we are giving on this 
T.PCC nPPfi fn occasion the highest priority to 

uccu IU health and education. There will. 

■». be an allocation of £50m. in 

SCil SlltS 1978-79 for the health service in 

the United Kingdom for specific 
The estimated outturn for last improvements in services' for 
year, however, is now £5.7bn. — patients. 

nearly £3bn. lower despite addi- 41 These will vary from place to 

The development of small year> j S expected 1o show a "For the coining year 1978-79, Britain than in most of the tbe United Kingdom for specific 

easinesses often produces more similar increase this year. Public I intend to continue using mone- countries which compete with T* 16 estimated outturn for last improvements in services' for 

additional jobs more quickly expenditure on goods and tarv targets, with certain changes ^ ^ our productivity is y ear ’ however, is now £5.7bn.— patients. 

titan development in the larger services is planned to rise Over the past year, as we have growing more slowlv nearly £3bn. lower despite addi- 44 These will vary from place to 

finas. significantly. moved into surplus on our bal- ** g 0 W e shall be unable to cuts in taxation during the place but there will be, for 

“They can also play a vital “ it ig more difficult to forecast ancc of payments, greater atten- prevent our rate of inflation >' ear - 0f &U the elements in the example, extra resources for the 

role in regenerating our inner bow our trade performance will tion has rightly focussed on from nsm* significantly next forecast the PSBR is the most lull opening of newly completed 

rties and our countryside. For develop since assumptions about sterling M3, the wider measure VMr unless ^ve pan achieve much difficult to get right hospitals, facilities to cut waiting 

thic rooerxt flito Rtirlnnt uril I rnirn n .» mnnnv enmvlv rnthaf Ilian \ . « . u Diit aunn if 4Kic nmar*e PQftR H-aff tn Vinl n mpo fr»r 

n Little growth .S350m. in two tranches of Veyen policy. stimulus I give to the economy 8611 gilts to offset the domestic expenditure by local education- 

. - and 15 years respectively. \hus " “I also intend to adopt a ,- n ^jg Budget we cannot expect e ffec ts of inflows across the authorities on schools and col-: 

» Ifl economy it will mature well after \he system of rolling targets in which t0 keen control of prices or to exchanges, which were very sub- leges and there will be some 

. * hump 0 f existing matun'%s. iL 4 the target is rolled forward once sce the faster fall in une’mnloy- stantial in the past financial year, additional funds for retraining 

__ “World trade, in manu- The VS. rating agencies hje U, W0 3TC lO SOlVC tfllS COUIltry S every f six months. This will ment at which we “The funding of the PSBR out- teachers In subjects tike maths, 

•; rtures increased only 34 per said they wiH rate such an isflJk , ... : ^ enable, jne regularly to reassess “ i therefore propose early dis- Slde tbe bankin S system will be science and crafts where there 

- it. -com pared with- 94 per cent triple A, the highest creflfc nrohlcim WP TlPpH to take • progress on the monetary front cugsions with the reDregentatives helped by direct sales of Certifi- jj a shortage. 

1976. Although, with an rating they can award. Jil ttC UCCU IU IdftC m rejation to developments in of both sides of industry to see cates of Tax deposit, mainly to “There will also be £20ra. for; 

• Tease of 8 per cent, in the “I believe -that by ..sprang . . # a -- T the rest of the economy, and ^ whether thev agree with companies, and of National Sav- environmental services, including; 

7 Lume of our manufactured the-. burden of debt repayment aClIOil OH H WOrlfl SCHlC. NO either to continue with the exist- ^ Government that we must to individuals. building small factories in rural 

:• oorts, we increased our share forwards and backwards . hi this w . lult V M. i . in range or t0 mo dify it keep inflation movin«* down next “ A n « w IS8Ue of savings cerUil- areas by the Development Com- 

" world trade, in general as way we can. ensure thaf it does • _} Annnfrv non cnlirn otmn S-fo For «ainpie, if events have vear wcond what poHcies cat ? is “pounced today, with a mission, and for preserving the 

II as in manufactures, .there not unduly restrict opr ability MI121C lUlIUlXY LdJU MJIVt cVcll 1U> moved as L would hope on are an p r0 priate both in the field y*® 1 * of just under 6.S per cent. CO astiine. There will be provi-; 

s very- tittle . growth in our to .expand ouiL econ^piy and to ■■ . . * counter-inflation policy, it would of pr i ces and 0 f earn inss to en- annum over ' its four year s j on f or higher expenditure on- 

)nomy during 1977. make an appropriate contribu- nWTI TlVAnlpniQ 7 be appropriate to consider in the sure that we achieve this objec- life, and a maximum holding for i aw and order— such as police 

■ The problems created by the tion to world grow®.” UTTU piuuiLiUij • • • • autumn whether to reduce it. any one saver of £2.000. This will and prisons and the probation 

;w growth rate of the world -Mr. Healey saiddhat the main “The target range for sterling mean that the forecast require- services; special assistance fori 

. moroy have been, made worse- objective in .the^coraing years. M* for 1978-79 will be 8 to 12 ment for gilt sales will probably certain areas affected by early- 

1 the big payments imbalances tike that of otbq»conntries, must. . . • . ‘ , _ , . per cent. The corresponding RnAefina tht* much the same in money steel closures; and a small extra: 

-T -rween the oil - consuming be ■ to ' reduce^ the intolerable financial situation ifr traos- probably lead to faster growth in level of DCE will be below the UUUailll^ IliC terms as tie sales achieved in the sum for sea defences in addition 

- Entries. Some oil - producing levels of miffljfolbyuient by stim- formed, an improvement In our our imports of manufactures. £6bri; which was aet out in the - ‘ last two years, and somewhat t0 the help announced for 

‘ " in tries cannot- in the short ulating demihd in ways which industrial, performance must be ‘This leads me to conclude ] e tt e ri'of intent I wrote to tie I)£IY HHCrGL smaller in relation to tie institu- farmers affected by storm and 

eliminate their .WPlnaea created jotarat home without re- our overriding objective smcc that without any stimulus from international Monetary Fund in pi*v«v a tional funds which are likely id good damage earlier this year. : 

-’ough trade, so tie- oil con- fuelling. inflation. this, is a precondition for tie present Budget the economy 197^, This will provide both for “ I believe that the success we be available. “Finally, funds will be made. 

. : . .ners as a group face, a corre- “The . tSmporaxy employment restoring high employment might grow in tie coming yeai a reduction in the rate of in- have achieved in fighting infla- “Thus l foresee no difficulty in available to promote insulation' 

. --mding deficit The. total uAddyfiuid other special em- “But this improvement is by 2 to 24 per cent, if' as is f\ a ^on and for an increase in tion over the last few years both financing tie I*SBR for 1978-79 0 f private houses and to launch 

'."Tent deficit of. the OECD ploynnent measures which have bound to take time. To the still the case we make these economic growth. It should through our control or tie raone- consistently with the new monet- a further scheme to promote 

''.'in tries rose to around $30bn. now been in operation for three 'extent that oiir performance calculations at tie prices which provide ample room for tie tary aggregates and through our ary guideline of 8 to 12 per cent, energy saving in industry and 

•'1977. But this- total- includes yeaw are already providing falls short fo design, delivery ruled in 1970. likely increase in bank lending policy for pay and prices pro- commerce. This will make a use-; 

arge increase in the deficit of “2Q- 0 ? 0 j°^ s or training P»ces. and productivity of that of our “if, 0 o the other hand, we to industry. vides reasonable grounds for » ful contribution to tie energy 

United States -and a large «&'. right honourable fnend. tne competitors, we will have to value the contribution of North “In Britain, as elsewhere, tie confidence that we can continue WJS0 1H VR1II6 objectives of tie concerted inter- 

rease in tie surplus of Japan. ..Secretary for Employment iMr. concentrate on making ourselves Sea oil at tie relative prices oF rate of growth of the money to make progress in the fight national programme I have men- 

One reason, for these diepari- Booth) announced a powerful re- competitive in price. 1975, which we plan to do for all supply is bound to fluctuate against inflation in tie next 12 tioned. 

“In addition. I can.npw tell this reason, this Budget will give our competitiveness are crucial of money supply, rather than i ower levels of increase in wage U * ut even if 1,113 y ear ’ s PSBR H$ts, more staff to help care for 
the House that we ppohose tn a special importance to tie needs here. But it is reasonable to DCE, domestic credit expansion, we have achieved this 15 35 as forecast the higher the elderly and handicapped, and 

make a British Governmglt bond of smaller businesses. expect that exports will continue It is right to recognise this by year level of government debt needed over 400 extra kidney machines, 

issue in the New York Aarket. “Now that our economy is in to increase substantially, though making a target range for sterl- *« ff we f a jj t0 achieve this. 10 finance it will be counter “Education will receive £40m.. 

The Issue wilLbe for a tltal of so much better balance and our higher domestic demand would ing M3 tie focus of our monetary then, whatever tie size of tie balanced by the reduced need to to cover a higher rate of capital 

- issue in the New York Aar: 
The Issue wilL be for a t«a] 
• $350m_ in two tranches of fee 
and 15 years respectively. \ 
it will mature well after j 
hump of existing maturij 
The US. rating agencies h 

__ "World trade- in manu- The U^. rating agencies h E ‘If we are to solve this country’s 

rtures increased only .34 per said they wiH rate such an isflJje 1 .. . 

it. -compared with-94 per cent triple A, the highest crafl^ TirnnlPIVKS WP TlPPfl tn tjllf P • 

1976. Although, with an rating they can award, jpllJUIvlllJ* ttC UvCU IU IdtiC. 

■rease of 8 percent in the “I believe -that by ..spreading- , -» T 

■rease ox a per- cant in me i ubiktb . 1 v 1 ia.T 

SS£ w°: action on a world scale. No. 

II ’as in manufactures, .there not unduly restrict opr ability single country can solve even its 

^ very- little growth in our to .expand our_econ,9piy and to - - _ 

inomy during 1977. make an appropriate contribu- nWTl TirAiklPTTIQ 7 

■The problems created by the tion to world grow® ” UVTII. (flUUlCUiy • • • • 

w flfmwth rare of the world- -Mr. Healey s&kUfhat tie main '• : 

■The problems created by the tion to world grow® ” yvTU. • • • • autumn whether to reduce it. 

iw growth rate of the world- Mr. Healey said4hat tie main '- “The target range for sterling 

. inomy have been, made worse- objective in the^coming years, for 1978-79 will be 8 to 12 

1 the big payments imbalances like that of othwco on tnes, must .. . ' _ ’ per. cent. The corresponding 

■ -.-ween tie oil - consuming be- to 'reduce^ the intolerable financial situation traos- probably lead to faster growth in level of DCE will be below the 

an tries. Some oil- producing levels of unemployment by st^m- formed, an improvement In our our imports of manufactures. £6bT ,-. which was set out in the 

intries cannot- in the short ulating demand in ways which industrial performance must be ‘This leads me to conclude j e ueri'of intent I wrote to the 
4 eliminate their wplnses created jowat home without re- our overriding objective ^ncc that without any stimulus from international Monetary Fund m 

•miEh trade, so tie- oil con- fuelling. Inflation. this, is a precondition for tie present Budget the economy ig7fi Th; s w it[ nrovide both foe 

'"' intries cannot- in the short ulating demjbid in ways which industrial. performance must be “This leads me to conclude ] e tt e ri'of intent I wroti 
\ eliminate their wpluBes created jowat home witiout re- our overriding objective since chat without any stimulus from international Monetary 
-. -•ough trade, so the- oil con- fuelling, inflation. this, is a precondition for tie present Budget the economy 1976 w m pr0 vide 

ia that other strong inforce® ent to these measures 
‘ intries have been . slow to on March 15 which ^oiiid jn- 
..-•'ow tie expansionary lead of orease this figure to 400.000 by 

. United States. These im- . ■ I _» . » >«•«!» « I»s* win. UI UIU utiun me uscucu * .. . nil. v — ■ ■■■- ... . ,'fihi, siaimiica aiiu mu a»u muiK 

ances are at the root of- tie ^ Hit* nmnnc - grow ti rate. time 10 time. I can deliver to the economy iSLutino sorae Artier help to tie con- 

. ^d ea s^ the ... aSTorSMas SSSS“Stu 

a^llaW?fS tiatUS^is tie main“n e emy r * =y witiout a Budget LOW IHterCSt ' ^"inflatiSn bm “^ofte S beSefit^o^f C fro^ responsible in each 

■;.T nroblem? we nted to wrk has been Increasing by of full employment. Monetary the ^ase in demand . mn^on aiw on me month These ^creases were cafie ‘ 

- p^actioEPoir a world scale. No a year, uneniployment policy will be a decisive factor which 1 can afford to generate rofpc “ It can be larger to tie extent included in the Government's 

• '.ifrtmSy thl ha * falKn S slowly for tie her^But our price competitive- this year depends mticaUy on TdlCb rhatiriseSfy expenditure plans as set out in T7_„„ 

rid oSHrtts K ^ -■*»' montl^and job vacan- ues s will also depend crucially the outlook for inflation. „ lnsorar „ 1t is now o^ mdusSlf per- PubUc expenditure White t Tee SCllOOl 

' d no single- countiy can by a «? j» ave becn r,s ? D fi- 4 t on -reducing, mdustnai ewt^ of Tfos in turn will depend* tD identify the sort of factors f 0 i5nance and to strengthen our la f^ January. The White 

'• ■".If solve even its own nro£ But we cannot expect to see which Wages are bound to remain primarily on two factors-- our may ca USC su C h fluctua- nrosoects of success in tie fight Paper- also made provision foi millr 

.U solve even its own proo- ^ rate of unemployment touch the most important ele- monetary policy over the next ™n S “i wou ld expect tie growth inflatim the statutory uprating of tie UU1H 

Rt.' Hon. Triend. the Prime “i 1 . ac1 vphpc to be higher at some stages in -The objective of the benefits in •• iije other increases in ex- 

Debt to 
the unions 

Rise in value 
of pensions 

National Income statistics later significantly from month to months. , UJ [IcliMUIld “These decisions will provide 

this year, then the Increase in oil month. As alst year, it is likely “ It is on this *as«umption that n useful additions to a wide range 

production would, of itself, add to be significantly above or I have made my judgment about . , nn ? un of public expenditure pn>j 

a further } per cent, to our below the de&ired range from the size of the stimulus which in our pia^ tor puoiie granimes and will also bring 

commerce. This will make a use-; 
ful contribution to tie energy 
objectives of the concerted inter- 
national programme I have men- 

“These decisions will provide 
useful additions to a wide range 

unirmc erDwth rate - time 10 l ' me - 

LUC Ulixuiio "Against tils broad estimate 

“It 'remains as true as ever like ir. S r 0wUl T 1 

at inflation is the main enemy economy _ without a Budget LOW 1 

• fV w . e ar « , to sojJe this °f men women available for that inflation is the main enemy e 5*|°omy without a 

' r. nfrv’c problems we need to wh* bas been Increasing by of fulL employment Monetary stimulus, the nmrease in 

No 170.000 a year, nnempioyment polity will be a decisive factor which I can afford to j 
country can lead the ha * been faWn S slowly for tie here. But our price competitive- this year depends mtu 

' -lit nut of^its difficulties In- last six months and job vacan- nesg will also depend crucially tie outlook for inflation. 

» A?cJ5SSnS w : wd«i»«. thl. 

— - .If rnlna anan it, Aun rn-nK. ISUt 

Low interest 

Free school 

mv Rt'Hoiu 'Friend, the Prime moving uuwu at bu mem. wwuua «nu me uuuuuk. lor tn be hicher at some stages in "** nhiectivp of the main socibj security oenems in “The other increases in ex- 

1 fir 1 ^uS^n^roltebl^dv^ Se fest half of the year than n^es m° myXdgetto-daJ^ J ^ * P^re^e desS to help. 

United States recoenised particularij is profitable overwhelming public suppo 1 diate future .is concerned the out- tkg year as a whole. In * n nrovide additional suooort fox the family budset The Govern- 

fact when they met at Easter fi^me in ^ roan^acturing ?.? ^ Cy P fti^ aS in Pa tepn lne I°rf k ' S ° 0W . firml - y e3 ^blished particular, the timing of central our industrial strategy portly in . “ We have therefore decided to ment has decided that the 

. rtj'ff Lt^ji-cuss - nr oct am me for con- 30 strengthen the industrial indispensable role m keeplxig and our success is evident in Government receipts -and pay- *i. e form of direct helo for ^crease in November the raLe autumn increase in the char n e 

■ tte* ««**«*■ 

. -.'■\.\or problems which are now 

'Vn aging tic world economy— Artf/ik/n* 
:;■■. growth, currency instabilitjv V/LIUUCI 
. : trend towards protectionism, 

• - ' r-dependence on imported • mpociirpc 
rgy and inadequate flows of 

hHnirinff vaip or inflation - . - nients may cause jumps in business, particularly for small , ,r?r « . k„ r*. for schDo1 mea1s win not take 

diw^rhp^oiinrrv owes a last- certain months such as banking flrmSi partly by strengthen- I, qwT}!! “IK , 1 *, 4 and £ ^ P !at *e. We have also decided 10 . 

Smnve- Tnfln^An May similar to that which we had j ng th G incentive to effort at all f 1 ® lngle P ersl ? n - Th ‘*J take advantage Df the EEC sub- 

■ mentor 0 l°t^ in vafuable eODtri- InflfltlOll in January this year. levels i n industry through cuts a ° l iu5n£ sidy for Mh ° o1 milk by enabling 

huUon^m^* 8 invaluaWe conlri - “ 1 will of course use whatever ^ inc0lDe . ta)t . ol t iver 4pei X ’TSn 'oeal education authorities irf 

“ l ?he h ^avernment can help rSltP instruments of monetary policy 3]^ believe that by using ... JL?®* P®"* 1 1 ?« provide free milk for 7 to 11. 

to SJn mmoocense and are appropriate as the sjear pro- ^ culs t o increase the real jjf Jinct i ear olds - The . net cost of these; 

e moderation m pay negotiations “Our year on year inflation “jJSj ^ wfll S fali v _ alue °- the pay i padWl duri °® Sme to offire viSS tie nmS S&wJF 3 *™ 13 about £ ®S ra - ^ 

f hntli ■ ho" «vntrf.illnB orices and rate reached sinele fibres in In ! erest rates .. 'J ljl .l a J! the coming year I can encourage ' u JtT 1B| A 7B - .. 

V4.* miji* — ’ — — - ■ anna, tuiu y*xi uj ujr ouli n Q en r rt _ _ _■ v TV»iu r *** ' *■ ucwucu it/. 

May similar to that which we had j n g th G incentive to effort at all f 1 Person, ina ta k e advantage of the EEC sub- 

in January this year. levels j n industry through cuts an I . n ®I®®“ sid y for school milk by enabling 

“ 1 will of course use whatever ^ incotD e-tax. r J3£r£I2l S locaI . education authorities ttf 

>le long term capital and aid “ a Budget stimulus by itself both by controlling prices and rate reached single figures in J 1 II,p r ^I./ a ! S , i T toranra the coming year I can encourage pcnaion wa 

, n the surplus countnesto viu not n6C essarlly achieve this, avoiding unnecessary increases January— months earlier than further furt ^ er “oderaDonmpaysettie- n75 

, nines in defimt, indudiiig Unless British . industry, can pro- m tad S ct taxation, and by cut- we predicted last- November. ^ in^ the alainst S “ ents an ? a continumg fall n « S M Rt 

^■iy on the developing world. duce and sell tie goods required. income tax. Over tie past 10 months tie “ e fisht 38111151 tie rate of inflation. Secretary o 

'-•'■■ to meet the demand created by u Bat main responsibility month to month increase in thp moujant however. « c °S mse 100 £ a Li f JSf Services ( 

'.;S _ ___ • any Budget stimulus, that in- here again must continue to lie inflation has been running atan Ihort-M^fntncsireS Budget measures are to generate be 

.ontnbutioa ••• efease IB demand wiil be met by ^ thc trade unions and annual level below S per rent 1 ’ ™ low rid I boti^i”!? the ^PP 01 ! °. f worlim ^ PWj? details oF ti 

• imports and. set Inflation Bomg employers who negotiate on pay. “The year on year Inflation ..nntmlUfmthe for ^ 0 11:1011 s economic °-^ jec ' the increa 

■ JO effort ^ ' •» " U t"*.*** in raie S'likX.oLch 7 5Z2S. live, the must also contribute 

Mv iJt Hnn ,he } )enefir a 8 ain - A* I announced 

SL Of sL F e . nd, j£ Jast sinimer. child benefit was 

°!L y l^ lnBa&0 ? lation to controlling tie domestic ™ “ also conlrihute ae ^increases in short-term Government bas nDW 'decided 

EfUjSSJUrSlEr *!!!!: ■.•PT J S P S i’ftJSfflTiSS a’-cur.orri Z “eS tf ^ that the chl.dbeooTr.rwft. 




in spring or early summer. Un- 
less there is some quite unfore- 
seeable catastrophe it seems 
likely to remain fairly steady at 

z_ Win u.a. an« nunraoinr to £g ht against un- A! together, these improve- be increased in April, 1979, lo 

£ given recent developments in me JSSloSmSu™ tic improve- j&^ orth a ™ u K n,i « for all children. Meanwhile, 

nj exchange markets. . Wth my S soaal slrvfoes and P 00 *-. 1 * ^79 and flJba as a first instalment of this in- 

at approval, therefore, the Bank of ” ep L or . ™ T ™ 1 ! ul . ! The revised creaS6i the Government has 

Mai * m for s&ssgm ktiSSXa SHTjJSSS S 

- .-t IS 

broach to this group of prob- termsof jobs and prices. stimulus 1 can afford to give the an ° d r low °“ t Sn smue ifr f H«levsad^“ Within the describe are designed specifically Govern ^ 

.5 m the months leading up “Two things' are clear. The economy this year. I have to J™ " pe tii ore whose iX! fJjTJSS BJ «r to achieve these objectives. I UffJSS? JP , Io addition, the premium. for 

he Bonn summit meeting in key to growth and high employ- make a judgment about the rate ^ h b risinjT rather SSifiv wp must aJsrf do our bfSt have, therefore, concluded that ^JL at ? n first children of one parent 

1 The European Council mit must lie in an improve- at whidh our industry can g“ ^ LS M Sf.Kf 1 ISSJ ^ri C « Md it would be ri^ht to give a full gf- families will be doubled from 

sed on Saturday to .work with ment in our Industrial perfor- increase its output to meet the • «jf we ^ t0 of d not m | k p ^ year stimulus to the economy of Jf. JL m Pa ? 1T Jf^ tJ^iSauo^wIi £i l P ® in November. The cost 

-rmination for tie higher mance. consequent demand and about' ini “ w ® a ,^\° “ S^^ nc d n m ?eUtim some £2ibn.-or about I2bi in- SPJSSPS. t these in 1978-79 will 

ionic growth that tils “We must design this Budset the competitiveness of the goods ™J n S « Lig d ^S?J nMmmtiim 1978-78. l5Z2E$ & all ? cat ! now a be around il65m - They will give 

• roach requires. . • ____• _ like the measures last October it produces." the OugUor said, f* "The measures .should raise 2SS? 31 : ~ n : n further, major boost to child 

requires. mte tie measures last u prouucee. ree policies for dealing both with the fromlinDlovers and trade unions --- tineenev 

This Budget represents a 33 part of a progmmne for “ m u Sl gm - consider toe p dney ' with pay and Site WmS-SSnStt TeS output by another l per cent, in 

isb contribution towards that steady and sustained growth hkeiy development of toe * x fp^vp dPicrminalion to ertsure the next 12 months and as a measures - 

mon effort as well 1 as meeting which, must cover a period of economy over the next year or so “Monetary policy will continue that we do not allow toe rale^of result GDP (Gross Domestic- 

national needs. ' ' many years. if 1 take no further action at all “21 J® L*1 r‘ PreHnnti should inoroase hv xj-. 



national needs. many years, 

/ tetween 1973- and toe middle 

ast year we borrowed; large, . •. 

s overseas to meet toe con- InfinrOVllK 
fif lences of the oil; price 
ease and the deterioration * 

K\ ur terms of trade. . • UlullStry • 

Host of these loans have to * 

& -epaid in the six years from The Chancellor co 
' . ' to 19S4.. As we moved, into the .bulk of the 
/nee of payments ‘ surplus'' demand created by. 
v' rebuilt- "our reseWes last is to :be' met by B 
" iMmn, the Government was then we must make : 



in tib, BudceL 10 p ay a ^ 111 our inflation 10 begin rising again Product) should -Increase *W . Mnfp tlHriOV 

“Sw S ail difficult hues- attack on foliation. The money from tie levels we expect to about 3 per cenu at 1970 prices IVIUI C JUafleV 

tionaroMudement on which the supply figures for banking March reach this summer. On toe con- —toe highest mcrease- for five 

marlin for error is uncomfort- will, not be published until trary, we must aim at a further years. I am satisfied tint this 

•2S?1? J? r S » Thursday, but I think it is riitit fall uan be done without cither 

*l\. not be published until t^ary, we must aim at a further years. I am satined that tils IIlQohinPC -in uecia,ng on inese measures 

3S*SrJf about Thursday, but I think it is right falL uan be done without cither of additional p expenditure tors 

ShStour of human beings- on this occasion to.tell the House This will easy to prejudicing our monetary objec. “The first ckli on this sum is . ^“ venim « nl • 

lte b most ^predictable of all in advance that sterling M3 grew achieve. Over the last 12 months tivei land l refuelling Ration or for the employment measures SKS! wJTihSSS 

such support for working families. 
Those depeudeut on serial 
security benefits will, of course, 
gain from the general social 
security uprating wtuch 1 have 
just announced. 

“In deciding on these measures 
of additional expenditure this 

the -OnniinM. wm then we meet make aje tee a«erTe e«epffo'i dtat'^SSS SSHnST ATw7 cinnol letter to 'the ietematioeS 

to Otfr ttY forecast like weather forecasts jump in January. rely on similar assistance 1a the Monetary Fund last December. fi56m. and in 1979-80 at about ^ from 

fbt- « *»**■«*'. ^gsssz&sr •'•SSSTiSyffl? .««? .*■ « e?5» w ss.&ss’jsssnjss 

That is why the -forecast in- ESJbn. or 5} per cent.- GDP, additional measures.- combined ??v?V5 0n ’ and ?°5* F S en ^- 
i year's PSBR (Public Ser- reflecting a General Government with the others previously an- 016 Govenune ht should take 

rs Borrowing Requirement) financial deficit which at 4 per nounced, will protect or provide Continued on Page 16 


’Financial Times -Wednesday April 12 197S 

Need for tax stability 


ft Mf 

major expenditure decisions on profits limit for the small coni' consultative document on capital 
measures affecting people’s panies rate of corporation tax gains tax and inflation, 
incomes, such as child benefit from £40.000 to £50,000 and to in- "I must- conclude that the 
at the same time as its main crease the limit for marginal practical problems for taxpayers, 
decisions on taxation. The two relief from £85,000 to £89,000. their advisers , and the Inland 
can then be seen in relation to '‘Next I intend to provide that Revenue alike In any scheme for 
each other. I believe It is right a business man who makes indexation or for tapering would 
that the Government should have trading losses in the early years be t0 ° great. _ 
taken now its principal remain- -of an unincorporated business, “Moreover; I do hot think it 
ing decisions affecting 1078-79. will be able to set them against would .be right to give relief for 
"Just under £200m. at 1977 income received' in previous inflation to investors in shares 
survey prices remains available yests. and land, while -investors in 

in the contingency reserve. Any “1 also propose- to give relief building-societies and. other fixed 
contingencies requiring addf- simitar to that for employees last interest loans receive none — and 
tionai ' expenditure in the year to self -employed people and. while an investor can benefit 


v; \ : : 

f ^ 

remainder of the year will be members of partnerships who are from the- 'decrease in the real 
met within this figure. resident here and work abroad, value of his borrowings. 

“The Government will con- “We are also proposing sub- “ But to liehteh ttie burden on 
sider the programmes for 1879-80 stantial relaxations in the capital smai ] investors ImSoose that'-an 
and subsequent years in the gains tax roles for small busi- £LOQO 

public expenditure survey. It nesses. I intend, as foreshadowed year fCwbe exMnm 
remains the Gavermnent's firm last October, that capital gains bettVMU, ^ OM 

intention to contain the growth tax on gifts of business assets « «LiiP*£!! Jin 
of expenditure planned for those either within a family or to fir'?? ? S! 'a ,? er cent > 

years within the growth which we employees should be deferred “ at w, . a * the -full rate., 

can expect in the economy as a until the assets are sold. *■ - - ‘ 

wh °k- “This wilt be a major help in .tiiY ’ • 

passing on a business. x rguiiiig- «*A 

Current cost l0 “£ «n d S avoidance:: v 

, • should henceforward qualify for „ . . . , . 

aronuntm? capital gains tax relief. This' r eh Cf will secure 

ai tUUHllUg wM1 ^oupagg investment - m that only large gams of £9,500 'or 

The Chancellor then turned to family companies. more in a year will bear the fun 

Current cost 

Fighting tax 

his proposals on taxation. “A 
major purpose of this Budget,” 

jital gains to relief. Tto „ “A Marginal Mte f will secijre 
[I encourage Investment in only large gams -of £9,500 of 
nilv companies more m a y ear will bear the fuH 

, t s * " j * rate- These provisions will 

■f I JL a,1 ^i,“ ten( l t0 ,T a i s i apply to. the year just ended and 

major purpose ot uns nuageu Umit for retirement relief from will ' Enlace ^r-^ntexemn. 
so S l % hSp and^lroprove our fsoow^A larg^hSase ti i? n fo F- * mal {, a . B P 0 “^ 
ftfiSW - StiSSS SSE^ "Sople” havf^I 

S5S * Ip“ '“3X5 “SJSS *-»“!! !“ « 

Mr. James Callaghan, Prime Minister, leaves 10, Downing Street, 
to listen to the Budget speed], . .... 

generous incentives to new in- up a 
vestment and the scheme for business 
stock relief which I Introduced 
in 1974 has alsp been of immense 
value to industry. 'TI^ 

“ I think the House would -*• 
agree that what industry requires » 
is stability in their tax environ- QT 1 
meat. I have therefore decided 
again to make no major changes “ Final 

The burden 
of VAT 

Lastly, tax avoidance. This has revenue— at could, bring in only provide the family man- with 
emerged recently in a new form *25m. > in.a full-year at most— special help during, the .second 
which involves marketing a sue- If it results, in leading stage of the transition to 1 the 
cession of highly artificial sm °kers to .abandon these high child benefit scheme. '.The add*- 

changes on Individuals at differ- ■ with the Governments guideHne, suceeife.-' It. Is the only teciM 
ept levels of earning^. . . r - Ms- standard of Kvifig ; WiH rise for^cuSag ~ nna&]fibyihen& 

Chancellor seenaslate 

tax ciits 

again to make no major changes “Finally. 1 am concerned to “The time has come not only sider an i 
this year in the rate of Corpora- limit the burden of VAT on small to step the particular schemes Insurance 
tion Tax or in the levels of in- firms. £ am proposing to make we. know about but to ensure that of emplo; 
vestment incentives. a number of changes in the nt > schemes of a- similar nature tributiom 

In my Budget statement last administration of the tax and. in can be marketed ' in future/ total reve 
year 1 said the stock relief particular, to raise the -registra- “So the provisions I shall -be in Britai 
scheme would continue in its tion limit to £10,000 and to allow introducing this year to deahVith countries 

1 * PC A i*l } fnrm Fnr 1 077 . 7 ft nnrl : &. tram r- t. . j « ■ . o ivfiA rtinl J L.. 1 

schemes — when one is detected, tar cigarettes, no. one will be tionai child benefit which - .I V ’ . . -■ 

the next is immediately sold— m< 2JSJ >le ?£ e<i . . mothers are now receiving will, \ ...V 

and is accompanied by a level . ,^ ne on the retail price in, general, more than offset the THE (!HANCElJliOB.’S . t -. a latfl She welcomed the- to cuts for Chancellor is a late convert to 

of secrecy which amounts almost maex wU1 be negligible. effect on family income- nf the conversion -to-, tax v cutt”'- -was -sihaU.' businesses, 'blit- s^ : that to cuts,” she de&ared. ■ 

to conspiracy to mislead. - “I have also been asked to con- reduction -in the child tax allow- described - by Hr& Margaret they^Iike everybody, else, .would Labour policy ’way to take an 

“The time has come not only sider an increase in the National ance -which --we ‘have already Thatcher OnofWTtihm ienrf»rr. nn . suffer from .the harmful- effects increasing. - proportion of 

^ orm ^ or 1 ® 77 '^8 and relief against VAT for bad debts artificial - avoidance by certain Gommunlty 
1978-79. I then hoped that the in insolvencies. partnerships dealing in corn- 

debate on current cost account- Mr. Hea/ey said he was sure modify futures will eo ‘ back" tn 

of - the 

debate on current cost account- Mr. Heaiey said he was sure modity futures will go ’ back" to 
ing might by now have reached the changes would be welcome. April 6.' 1976, that is, before the 
the stage where we could move “ My right, hon. friends and 1 ^ ate when the intention to tegis- 
to a permanent scheme of relief, are stiU considering what further late was announced in a Parlla- 
But it is now clear that more proposals we can reasonably take teentary answer. . 

time is needed for discussion of to help small businesses and “ My . .proposed measures 
inflation accounting and, when encourage investment in them." asainst avoidance by means of 
an accounting standard has been “ ! propose now, however, to l^nd sales with the right to ‘re- 
agreed, tried and tested, for give extra help to two particular Purchase will go back to Decern-' 
deciding how far it can be used sectors. First, farmers. I think ? er3 - 197 .& the date foreshadowed 
for tax. I intend, therefore, to it is generally accepted that a ParliamieAtary answer;, and 
f^Lin tbe present scheme for farmers are in a unique position, * wiU from to-day counteract 
197a /SO, and to continue it in- partly because the weather can devices for' avoiding fh® C1T 
definitely until a permanent produce substantial fluctuations charges on discretionary trusts, 
scheme can be introduced. In their income and partly an( * avoidance of. CTT. "'through 
However, I recognise there is because Farming i« *> hi„hw. the use of associated enrlnu/mAn't 

European ‘^creasing the married allowance 
by. twice; as much as. the increase 
in the single allowance.' 

e - “v er y znoderate,** soda!, wage determined by 
“ greit •" disappoint- Government and/tf low real 
Tory ranks thafsfbe UneJlS' : tire pay packet Bat 

JT* more exciting tiiafi tie 1 show The changes in. Investment in r ™ 

^5’ * l ° itse K' .The ’whole- of his strategy eoine.were very small and cojjlqt °‘ Td n^L:pv. 

isure th 3 t tll0 1 SllOWSllCfi for Hiirina . naM- -Fntiv r'Aewi iJJw. A aL. aOTV CflC 

for effort 

Tory cheers, Mrs. Thatcher 

■* But I do pot believe it would' “Pensioners 


continuing concern about the capital intensive industry reauir- ’ aT, d term life policies 
build up of deferred tax liabili- ing substantial investment 1,1 now ‘co“e to mj 

tionai allowance by £40 to £550. "Mrs, Thatcher reminded #e Chancellor had introduced. /.; ^ n*b 

.JST^L’iS »Sp iSStAyfe e W r£ 

nmhlpm which i think ill luTPc in four vparaL -'Tfiprp Tint'd Tfaim tittle . difference in -Anei£:- take- had_made .the uim t- decision by 

constituencies. ,.I therefore pro- ploymeht in the. post-^ar;p*i<?di. Tories w^comed the;. to cuts S inenme^tM?^ the faaslc rale 
pose to increase the\age allow- and the biggest; 1 increased and Btr. Healey had toa^-jitovided , Mr riaffvd - ’wivlpv" fPiniH 
ance a tittle. more than persodal peak inflation In the poet-war' he made sufficient rednetions in cvmru. Carnarvon! wirt hi« 

allowances generally:— by £50. for period.. , . _ Government 'eijrenditurte; ■ ; party had hDDed tlm Chance)]nr 

the single person and £100 for ^ -Average earnings*. were . a -Mrs. Thatcher/* .said WO itid have taken some “oosl- 

the marriedr-and to raise the age week n less than hefore ' the Chancellor’s general jBndget; tj ve steps towards ellminatine. 

qllntminAA' innfimA liv^f fA 04 AAA Onvflmwpnt tr\nV rv^i^o' nrti4 Arim'vnonfQ • nori kaan ivi • _ _ ....rr* 

ties in company accounts and “ r have, therefore, decided to for tiiose taxes which most con- 

the effect this may have on the allow fanners 'to average their cern t ti® individual., man and 

raising of investment capital and incomes for tax purposes when wonian. 

investment decisions. This is a they vary by 30 per cent or more . 

matter which can best be dealt between two vears and to in- tt> > 

with as part of the permanent crease the agricultural building . HlffhGr -tar 

scheme. 1 wish, however,.to dis- allowance inthe-firsi year to 30 ■ XAI » UCJ - 

pel any anxiety among Indus- percent. *S**nm.*44.*~ 

a££? *!2L .** Second, -the hotel industry. ClgaretteS 

my proposals wheb ** ' fi ? ht against allowance' income limit to £4,000. Goveiyment., . took .^aqd commen^ h^/beer^ jgaK .ip; or partially^ eliminating, the 

inflation is a« a crucial stage. • 
"The proposals ! have an 

nounced so far .’iqave £2.4bn. for £l,600m. is attributable to the 
reductions in income tax. i have lower band and iust over £550m. 

u The . cost-^ot. these- measures tfcere had .been ‘ the J biggest jj»- almost >sul his previous Budget u c rucial problem ” of unemnloy- 
will be £2, 150m ^ of which nearly crease in personal toatjQn. speeches. “But, not' one sjngle ment. 

£1,600 in. is attributable to the “ His str%teg^ has not tforkfed one ca them has brought .an hn- They had also hoped Mr 

scheme continuing indefinitely In recent years a substantial in 

they may be faced with a mount- crease in tourism has made an- J1 I s ^ senerally 

ing volume of potential tax important contribution to our f‘ ec0 / nisecf that, while the total 

liabilities. S5 sHi“ export earaiwa burden of taxation ^ Britain 15 

10,1 1 1 toerefo > ^ rt propose that any ^tjun the- vtiitemational 

K . .. rtUJ ’ averafie. the nrnnnrtinn nr tntal 

considered carefully how they to the increases in the personal 
HlOhAr ,fo r should be distributed su as to allowances. 

1JJ o uc * (Ull further the objectives I. have set “As a result, of these increases, 

'• v, myself to increase the incentive 360,000 people* who- .would other- 

Cisarettes for greater effort and to promote wise have been paying income to 

° social justice. ' in the coming. year willmorhow 

“I think it is now generally “I believe it is right to regard do - so. -■■■:■ ' " • 

cognised that, while the total this Budget "as me second phase T “Although TSst~ ' October 7! 
irden of taxation in Britain is in : a process which I began last increased the 'thresholds for'tli 

n,l 1 ' ..ffl-UU . . 4 L. . .X.A 4 T_ , ' • - • - - - ' ' 

“ -v.*e A-af jilfm ■■ A 1 ^ . 



expenditure incurred after to- average, the proportion of total 

day on the construction or exten- 

sion of an hotel with at least ten 1 S , ^ t0 °J li *Vl?°^ b i « I h ^ e 
bedrooms should qualify^ f“ ^ dy lr ^nificamly 

... J in the last three -vear« -fTnic 

capital allowances at the rate of - n ^ ie iast , three .'^ eai T 

T. therefore, give this assur- and 9 !*" pe^cenL^iJnua^aimw accomnt for almost aii thrHffbn.' 
e now: if, this time next year, per cenL aiu,ual allow ‘ stimulus which ' "l * have 

are still unable to see what suinounced. ' ' ’ " 

a a permanent scheme will ' ' “I know that some MPs thrnk 

! ’ £ tro 2 u f£ Iegisla ; Prnfit cfiarirm - n would ** right fo cut income. 

• *?■ build up of FI lUJl tax this year by a much larger 

tax will, therefore. 

ance now: if, this time next year, 
we are still unable to see what 

form a permanent scheme will ___ 

take, we shall introduce Iegisla- p rn f»f charintr n would ** ngfitto cut incotae j -“j • i* ■ . - - 

rroni snaring living standards can continue to 

«iw % u&toSttS.wr.'rt encouraged ■ Son! ‘rsi, 1 ? S rise in the year ahead.’'', 

.y. n ^® n °. ff - “I also wish to pnennropA some sympathy with this view. 

present scheme ^mUal o^ R^barm* in this year’s “Bull believe_that this year ■ ' ■ ■ ' 

h m ance BUI. Profit-sharing w & n»ust : consolidate and rein- -- 

nf thp T-piipf fnr^h s .,hcom,on( schemes can encourage the ern- force our success in ’the fight autumn. I told the House in basic rate of tax by per. cent, 

year as remains Ste/U affwlr P ,0 >' ees of a company to identify against inflation so -that we can October that, as increasv I did not at that time similarly 

period year themselves more closely with for good and all bring, down the- ing the plans for public expendi- index the -threshold for the 

“This will remove the maior their company. As the bon. inflationary expectations which ture in 1978-79, 1 was raising the higher rates of tax. If I did nol 

criticisms which industry has of Gentleman, Uie member for have so damaged our economy in level of the personal raise this now, people with no 

the present arrancemems and Cornwa11 North Wr. John recent years. fixed in last year's Finance Act more than l\ times average earn- 

w ;n enable stock relief to Pardoe >. ha s often emphasised, ln t hi s situation I cannot by 12 per cent, so ensure ings would move into higher rate 
continue in more or less its 0118 can he, P t0 improve the believe it would make sense tor that their real value was main - liability this year. 

present form until a permanent relatl oiiship between employees “m Government Itself deli- tained. and that 1 was' bringing 

system is available. and employers, encourage berately to raise the inflation forward this increase in to TT . - .r 


also wish 

‘I do not makg pny call for 
sacrifices . . . inod'esUincjceases in; 
earnings should ensure that real 
living standards can continue to ^ 
rise in the year ahead.’ 

system is available " ana employers, encourage oeraieiy io raise me uiuauon 

“While overall stability is my greater efficiency and stimulate and increase the cost of. 
main purpose so far as com- enwtk livmg. I will, therefore;; leave, 

patties in general are concerned. simply to give lmtirect taxes generally un- 

I believe that so far as small rel “* to the higher paid there changed pH this . occasion— with 
businesses are concerned we can «» »e. amount one small exception. 

Stability is my Breater efficiency and stimulate rat c a^d. increase the cost of thresholds by 12 months com- 
a far us com- growth. living. I will, therefore;' leave, pared with the date provided for 

are concerned i- 1 ? ir is n °t simply to give Indirect taxes generally un-- in the Act. 

Higher rate 

I believe that so far as small’ relie * t0 the higher paid there changed 0 n this occasion— with ‘ «i n practice, this increase has UdlmV *■ 

businesses are donfvrnwj wp »«nn mua t be a ceiling to the amount one small -exception. turned out to be slightly higher _ 

expect a significant improvement ot re1ie£ W "dticb »ny one tax- . “To discourage- th& smoking D f t han the increase in the rel 1 a . i, -hp I ll S!iS? 0 | S imi¥ 1 nF B |^\Mic X raie 

in P industrial perform Lee ?rom ?f rn ? t ntit J ed i nft So there f Igar ®5®, s T w ^“ h 5 a ! e . a t hi S her Price index over The calendar ^oinyKWwTofrO^ b Thk wifi 

sump pasina nF rh P tu* •• Wl11 . be ® ,im «t of £500 a year tar yield. I intend to introduce v ear 1977. from ib.OOU to U^UU. i ms win 

some easing of the tax regime. 

in the fniteu, Sthr i r i a i? d wlH broad . ly P a ?s ed ® n lhls Jncreased duty in th e tax thresholds still further, th b,? - 

toe follow Method III as set out in prices they would raise-the price or whether 1 should introduce allowance. . - - 

„ the Inland Revenues consultative or 20 of these cigarettes- by about a lower initial calc of taaT. "As a result, 450.00< 

>n d0 “ imen . t Published last 7 P. About 15 per cent- of c/gar- • who would otherwise- b 

uartipiilar n hip inerpaep in tho V ,, Vr .t . unu «™auiy h«mcu un inis lucreu&eu auiy m 

TTT relipr b e nc ease m ^ follow Method III as set out in prices they would raise-the price 
“I ran now mitiinp tho firm Ittiand Revenue's consultative of 20 of these cigarettes -by about 
i can now outline the firm document published last 7p. About 15 per cent -of emar- 
decisions we have made on the February. ettes will be S&eES?- - ^ 

“& WiUch Were under “ 1 ^have studied very carefully “The House- .-will recognise 
16,1 First t intpnri representations which the that this supplementary duty is 

First, 1 intend to raise the Inland Revenue received on their not designed primarily to raise 

his married i 

The Denis Healey Show 
makes easy listening 

Special help 
for families 

"As a result, 450,000 -people 
who would otherwise be paying 
tax at the higher rate will- -not 
have -to do so.. This twll be. ef 
particular .advantage to skilled 
engineers, foremen. . and middle 

“I propose also to 'increase 
Sl ? c ? ts » J lavc already, more the i^shojds to the successive 

r 4 

PAYE on the. first pay -flay aftijr ^n.-toder to illustrate this, let by nearly 1 -G-mw ^ , 

May 10. Single people and earn- ma • tab a Am* tVia namnla aF n . J5. real 


chfldreaaiMlerlL --(Bn 

th ereafter- p week les^ Budget 'will give him as .extra ■ -. • ? : .. . . 

ia tax: -2^ fiUS2.4 -week in ’his .pay packet, • v-*'. .... 

will then, ie 

refnnd nf about aSend-a ftate ^ 0n ,the Sie bS, a 

* 5 L 5 - W-M 

j ,'flM incrMsea. nattonai Kai*!*”?.™ 

• insurance contributions. - ’ • ... cent, better off, 

.. t-.. and OOl£ 50 a week will be 

Effect Oitr - v j.- Taking aU these Into* aeoouat; over' 6 .percent Setter off 5 
: i • • - - ---. the £75 a week family 4 & better . -“.Thus-I do not in this Budget 

■ XX 7 Q Itoc - ' ? S by £S ^ 2 ana, when the child make any calT for sacrifice. With 

.Tt.dgta .- iU . .. --.benefit rises in November by. a the rate of inflation remai ning 

70 p ^or eacb -cMld^ fte low,, -and .wjth these 'substantial 
^ family will -be better off.*# a tax reliefs, modes?. increaSs^te 
stodai^l M ® udget bn of £ 4.72 a weefc . * , earnings slwuld. ensure that re 3 

^ : to/y V’ But these calculations-^)- not Uymg. standards can continue 'to 

tabtor hi. raid ■ S ™ t0 acc ount the effeots -of rise over, the -year, ahead without the best possible recipe 
commercial and ' industrial 


- . 

c.; . ; 


than- fulfilled my ohligatioo to hi _ ep pat _ h an ris. The 40 her 

narilpiil^rlv^jnnp' 1 ^ b the ceot - band will, as" how,- be £1,000 

particularly impressed by the | n ] €n g. l |j_ This will he followed 


MR. HEALEY’S pop Budget 
seemed to earn the ratings that 
might be expected from a radio 
slot between Pete Murray’s 
records and Waggoners Walk. 

No drama, not mnch panache 
but distinctly easy on the ear 
—and certainly guaranteed not 
to lose the housewife's votes. 

Only a few minutes after 
MPs had stood in protest 
against the abandonment of 
Imperial measures, Mr. Healey 
ruthlessly trimmed some other 
traditions for the benefit of bis 
radio audience. 

The Chancellor arrived with 
his script in a paper folder 
instead of the old despatch box 
which is presumably now being 
saved for television. 

The Commons was expec- 
tantly tense; but the gaps on 
the benches showed that some 
at least had stayed away to 
hear the transistorised version. 

Countering the threat ot 
boredom, the Chancellor dis- 
pensed with the usual pro- 
tracted economic review and 
got strafghl to his points. 

He began by cautiously re- 
flecting the Government's 
collective determination to 
succeed in its economic battles. 

But after proudly reporting 
its high credit rating in New 
York, Mr. Healey turned to the 
’ ofbnptoving it at home. 

: The Chancellor took ont his 
£L5bn- and promptly silenced 
the scoffing Tories. He handed 
out his first rewards to the. 
pensi oners and spread some 
extra public money, to Uie 
delight of Labonr MPs over 
employment, health, education, . 
and jaw and order. 

His electoral dedication en- 
compassed even rural factories 
and sea defences. 

- 1?“ Co J mnons nodded know- 
in Sl?» a ? c * 10Se November^— 
a likely election date— not only 
as die time for pension 
increases but for rises In child 
peoents and for no increases 
iu the cost of school meals. 

Small businesses were given 
their concessions — u it - is 
generally accepted that farmers 
are in a unique position, “ Mr. 

Healey smiled In ■ generous 
tribute over the Prime 
Minister’s self-effacing modesty. 

Belief for hoteliers provoked 
a cry of “Well done ’'-from a 
seaside Tory. „ 

Liberals grinned with satis- 
faction over the Chancellor’s 
introduction of. profit sharing. 

. And still Mr. Heaiey bad. 
more than £2hn. left for ihe 
show's, climactic income tax 
cuts. . 

Waving his uplifted tiring 
standards . jubilantly, ' the 
Chancellor rat down to cheers. 1 

“Follow that” Labour MPs 
invited Mrs. ■ Margaret 
Thatcher. The Tory leader 
made a faltering start by com- 
plaining, as she clutched her 
handful of notes, that she had 
had no time .to- prepare her 
script for this broadcast 
Unsympathetic Labour MPs 
jeered— while Mrs. Thatcher 
ad libbed hopefully that Mr. 
Healey's 13th ■ .Budget might 
have been more stylishly pre? 
seated hut would be no more 
memorable than the preceding 
dozen. * ' 

two bands oF‘£l',000;^o"o7 
people become liable to enter £t soo, one of £8,000, one of 

jfrld ^'S 00 ' and 0fle of £S;50Q - Tte 
indeed the highest m toe world. ^ cent ra£e wi iT ihus'-bc 

^ ^ i reached at a taxable Tncpme- of 
paid are little better- off in work £23,000 as compared 'with the 
than on the dole. I cahoot be- p rea - nt £21 000. ' 
lieve that this makes -sense in , 11 Thpre a 1 similar aUs# tor 

0r f socl ^ ^£5!: raising “the thresholds for -the 
, iw A P r °P° se therefore to- surcharge cm investment income. 

^ e wn ° We n »h te 1 P r QP ose therefore to raise' the 

per cent on the first .£750 of npng».| thrpshnld tn thp 10 -oer 

^ ab ‘l,! n K COi r h e ' "iSKSS SlH sureharee °frem 
JL 11 bejhemar^lreteof fli500 . to - £1; 7 00 m Hie threshold 

ta f„ f ^ orae , 4m of ldw to the 15 per cent rate from 

pyss '“m £2.000 to £2,250 in line with the 
caught in the poverty trap will rige j 0 pr jces. ; 

^uoTO t£ hJi npact *K h - at # inuC ? .“However, it is significant that 
severefreeause tteiFtisrate wifi Marly haU ort hase^able to the 

ventage points lower surcharge, are over 65, and two- 
thirds of these have Ificotnes 
a ur2Jb C h D .H‘»? aj » rS ^ r below - the higher rate threshold.: 

1 therefore intend, in addition td< 
this change alone, I hope it may ij,® increase T 'have already' 

h?nrf * t0 f e . 5ctend ^ lower announced; to help those elderly 
ia ? T ^Kii - future* ye^s* people living on relatively modest 

. beheve. however, that incofog from savings -by increas- 

lLlchn1? 8 ?? y 10 real valu? of the.sur- 

«? r i as p0 S5^!2Si cfaar §e thresholds for them. 

? propose that for. those over 


worldj but tojour customers ijV odyOde<rfl500Gro^tid4ressesii6D 
countries around the wor£d. ■' - - ''.'si 

This excq>tional network could - save ypu : rime animenKyrior 
your business; if your bank can’t offer you^be same, conje-amisee us at 

i V-’ - 

t-, -.-. 

jw - ar ; 65 ^sss K-srkm \ 

as I can out of taac altogether. I nont nip uhnuM m un fmm ; 

cent, rate should, go up frairti 

therefore propose this sear to £2,odo l0 £2,500 ; and for the 
raise tlie single* person’s allow- is per CBrvt rAle £2^ 
ance and the wife’s, earnings £3 iQCHJ Fi'nally.-I propose that 
flm 1 ? 5^ a further £40 to maintenance payments should be 
£985 and the married allowance wholly exempted from the sur- 

*v£:- t0 . f1 ’ 535 ' chari>c witheifectfrom thia-year.- 

This increase in tax thres* ‘‘The changes in the personal 
□olds will help widows' and ulso. ailawances .will take cffect-under 

•> fU 

Bank Urnitadl ; v - v 

he^s yoatftimg^ 

" hi ’ 

“vi " j- ''p. - ■*. ^ , 

Head Officer-id Clandnu La&LofklWi ECfti TAff « ; - itf i att wnrdiT g^OOiaafiw : 

I#-' - ' ■ * - . ' " , m'm - Z. 

r u? . 

■’JiVS '• ■. 
•1 '■*• 

the budget 

-• , ; v^aqCial ..Times'’^ A pr il : 12 ‘1978 

Details of proposed taY changes The impact on earnings 

■ ;TlfE 

1 hf* soys: 


rt cip 


statement £231 and fo J Budget Day. rate of the excise duty on rateable value in force on that 

first children^ and £170, £205 and it is proposed to reduce to 10 cigarettes shall be increased by date. 

It is proposed In -i th» fnL ^ - f0T sabse_ cent the rate of corporation £2.25 per 1,000 cigarettes in AutMumpta* duties 

* Kincle oerson'SiilJriSS^S !S fc children). tar on the chargeable gains of respect of cigarettes with a tar It is proposed to make araend- 

~ — l!L ^Uowaoce and the. . It is proposed thai^ child tax an authorised 'unit trust . or yield.. of 20. rug. or more. . _ ,ments fo the law relating to anti- 

dampiug . measures, to enable'.tfie 
amend the United Kingdom to impose duties 

0 Act 1972 to of customs on third country goods 

„ _ provide that the gaming licence to give effect to obligations arts- 

is proposed to provide relief duty gy qMe_to_S «Uspj for jng_from ^.“'“bersbip o^the 


. nEn _ w K Huew . «u uie loci acv tu* mem p„, * - . 

. ^1535. - ■ in the 1877 Finance Acl it j 8 and pltal 

v Proposed to increase the also proposed to increase to £80 

.. additional personal', allowance the exemption limit for child . --- a nerion oecinnine after 31 Europe* 

-v~10 to^ 0 _. dependency allowanw received S C nne?^n Ma ”* 1978 be based °n the SESty- 

...!•• U is proposed to increase the by widows and certain other in*,,;!? * . r , T 01 0602111 
• allowance for the single social security beneficiaries. ers ‘ Tinrar'vct nffnntc nf HPW rofoc 

i-v..; person from £135(1 to £1500. for I* is proposed thar the income iVu '525^5 (n t>10 I? OlcCaSI cIlGClS OI DvW iHlGS 

■ sma11 disposals exemption and The effects shown are direct effects: that Is the difference between 

■ .V ini it SSomSSw ** jSKSJS i he alteraati ^ «• of **** iwM.* *&”*£££ ^ 

.WSSff. !?■ SSL. . ?H3\o 31 SfflS?fiSSj , 5 Sfffifl 

' . separate lower rale bLIdS tte self-emplored and members "”L™ r °r «^ s , u ? 

- :T50 for a wife's earning) It is 01 United Kingdom partnerships 1° £S -°9 0 a ” d * mar 2T£L re ,e I 
Iso proposed to Sm the basie {**&* in this country and work- X r *J ains be ^ ,eeD £5>00 ° and 

redu^^s'annS^riat? te*proposed to allow relief 11 is Proposed to provide a 

■ ' rite's earnhS^dSreed'S the a ^“ st general income of the ^'over relief for gifts includ- 

■ oier S£l * 1 “ e three previous years for a trading m ° partial gifts. oF business 

•: T . rw tK« uriHth low sustained. In 1878-78 or later, »«■ and to make some improve- 

“ P,- P0 E?* ed tbat .2* width in the first year in which an in- mcni * in the relief available for 

'3?han^B P Bhn.?w , K- a « d w? tbit div «iual carries on a trade or in the replacement of business 
■cnt. bands should be £1500. that ^ of “ 1 fte ne3rf years. assets. 

1 ^ C ?L nt : is proposed, to introduce a ft .« Proposed to increase the 

Irvi !? nd ®o°Pl d be Ei,5«j, and that provision to allow a- fanner to m >dmun fieure of gains eligible 
w * d ^ b P® r cent- average the profits of two con- * 0r "exemDtion under the retire- 

■4Cilr and s “ ou * d be £5500. seen tire vears where there is a TY1< ‘ n t relief nrovisions from 

As a consequence of these change o£ 30. per cent in profits *20000 to £50 000. 
hanges. the structure of from one year to the other. Canltal transfer tax 

ler^nnal tax rates in operation it is proposed to introduce Tt is proposed to amend the 

n 1078-79 will -be: - provisions for taying certain law relating to deeds of family 

•AMDS OF TAXABLE INCOME persons engaged in diving opera- arrangements and disclaimers. 







a full year 

- 4J5 

- 4 

- 53 

- 52 

- 04 

- 500 

- 87 

- 68 

- 140 

- 31 

' It 


0- 750 

750- 7.000' 

7.000- S.000 

8.000- 9,000 

9.000- 10.000 

10.000- 11.500 

11.500- 13.000 

13.000- 15.000 

15.000- 17500 

17.500- 23.000 
Over 23,000 

is proposed 


Percent, tions under Schedule D instead It is proposed to amend the 
of Schedule E. . ‘ ' provisions relating to settled 

It is DroDosed to provide relief pro*vrty. 
for profit sharing' with effect from Tt is orooosed to extend the 
the year 1979-80. relief available for transfers to 

It Is promised to increase the emnlnvee trusis, 
earnings limit above 'which, the It lc nroimsed to Prevent the 
pnecW rules for taxing benefits avoidance of tax when certain 
in kind apnlv from £7.500 to in«it<-ance policies are taken out 
£8.*W» with effect from the year for the benefit of another nerson. 

Income tax and corporation tax Surcharges and rebates in 
the , , Xt . “ ProP 0 ^ t0 introduce an respect of revenue duties 

initial allowance of 26 per cent, it is proposed to extend for a 




' .- : ir*»ehM8 for tti* inwArment in- w » n IS proposed tO CXieno tor a 

»!!LSj 0 r5«i n JSaSS fnlrn for Mpi1al expepdltiire on agn- further year the existing powers 
^nd 1 increase «^P*ral buildings and works, under Section 9 of the Finance 
1*51 LStSS' If 15 proposed to. .introduce Act 1961 which enable the 

n J 1< lJi er iK ei !hvi 5a ?rarv+ 0 ^ capital allowances for expendi- Treasury by Order to impose a 
■• ia i tbe c ®“** tnre on hotel buildings at the surcharge or allow a rebate in 

a “ l ? d at £2^50-. For P^rspps rate of 4 per cent- per azuuim respect of the main revenue 
jed ° r over, it is prppoaea w y^th an initial ' allowance of 20 duties of customs and excise. 

‘ 'SSi£ e ^eshold from &OOT p,b rcent . Value added tax 

- a I? per cent, hand j t jj proposed to Introduce It is proposed to amend 

..; £500. so that the 15 per cent, provisions under which, follow- Section 20(1) and Schedule 1 to 
••_te is reached at £3.000. hTc j^r, grant iff a lease of more the Finance Act 1972 relating to 
- suiting structure of investment than jq _ 0 f ^ industrial value added tax, so as to increa««e 
come surcharge for 1978-79 hu3din?r, the lessee -may become the registration limit to £10.000 
' ■ 11 be: entitled to industrial buildings per annum from April 12. 1978 

~~ ■ BANDS OF INVESTMENT allowances instead of the lessor, and the deregistration -limit to 
INCOME • It is proposed to make, pro- £8.500 per annum from July 1, 

vision with retrospective effect !978 ' 

Percent against- the avoidance of,. tax by It Is proposed to amend the 
■.'10 . “ partnerships (Other, t' 

15 ncrsMps between to 

■ dealing to commodity 
' Percent. . it is proposed to. m 
10 vision with effect from 

' 15 her 3. 1976. against 

It is also proposed ;tiiat - main- avoidance of tax by thf 
nance payments should ' be land with a richt to 
' empt from the surcharge. ; Corporation Tax 
-As the second stage of the It to proposed for flieffh 
ieme to phase out child t»» year 1977 to increase the 


Increase.- in single allowance by £40 and 

married allowance by £80 

Increase in additional personal allowance 

by £40 

Increase in age allowance by £50 (single) 
and £100 (married), and in income limit 
Introduction of lower rate on first £750. ... 

Extension of basic rate band by £250 to 


Changes in higher rate bands .... — 

Increase in Investment income surcharge 


Exemption of maintenance payments from 

surcharge — 

Increase in child’s earned income limit ... 

Chans t* in treatment of overseas profits of 

self-employed Negligible 

Loss relief against general income for new 


Averaging relief for farmers 

Change to Schedule D assessment for 

- certain divers — 

Income-tax and corporation tax 
Initial allowance for capital expenditure on 

agricultural buildings - 

Allowances for capital expenditure on hotel 

buildings Negligible 

Industrial buildings allowances: long leases Negligible 

Corporation tax 

Increase in limits for small company relief - 11 

Further relief, from apportionment Negligible 

Decrease in rate on chargeable gains of 

certain trusts ~ 7 

Corporation tax and capital gains tax 

Relief for losses on loans Negligible 

Capital gains tax ... 

Exemption and lower rate band — 15 

Rollover relief for lifetime gifts of business 

assets ’■ — • — — a 

Increase of exemption under retirement 
relief provisions — — 5 



- 9 

- 10 

- 10 * 
- 1 

Negligible - 20? 

- 15t 

- 20 
- 2 

- II 

- 65* 




single persons — income au earnea 


Chaise for 1977/78 

of total 
Income taken 

tax- infax 


charge for. 1978/79 Reduction . 
Percentage -in 
of total tax 

income after 

Income taken proposed 

tax In tax changes 



tax as a 
< percentage 



Reduction Reduction 
in tax in tax as a 

compared percentage 
with of 1977/78 

1977/78 charge 

before before 

October - October 
1977 1977 

measures measures 



per cent. 

£ ‘ 

1 percent. £- 

per cent. 













188 JO 








2 fiOO 












447 60 







498 JO 


















T 208.70 
















































































20 £>00 


















Married couple with 2 children not over 11 

— net weekly income 


in net 




Net weekly Income in 1978/79 Increase 1977/78 

Net weekly income in 1977/78 1 

including proposed tax changes in net 








Income insunmee 


Child Income 







tax contributions 

income (benefit tax 


income 1978/79 measures 






£ £ 





30 AO 





450 0.00 










450 040 





40 JW 





450 155 










450 435 










4.50 755 







11 89 



4.60 11.15 










450 1455 










450 17.95 










450 2135 










450 28.15 










450 34.95 










450 4155 






— 1.950 


Under 65 . 


Over 2,250 

65 or over. 


Over 3,000 

tials) of Customs and Excise - to 
deregister a person who has 
pro- cea ed to be ' liable to be 
i. . registered, by virtue . of para- 
the graph 2 oF Schedule 1 to the 
of Finance Act 1972, and who has 
Tailed to comply, with the legal 
provisions relating to submission 
of return*, prepayment of value 
added tax. 


n^STaS SMr limits ter the MJf J5^*» ‘BgBS 

th child benefit tt is proposed companies rate of corporation certain rehefs ! from the liability 
reduce the child allowances tax. from £4ftOOP anfi -£65jgW 

£100 for each child not- over £50,000 and £85.000 resp^vely. bad dpbts -Where the debtor 
£135 for each child, over 11 It is proposed, to 
L not over 16 and £165 for relief! from' *P 
■ fch child over 16 (as compared close trading 
^Vlith their 1977-78 Levels of £195, accounting periods 
:• • • ■ ' '■ 

4 : V 


Value added tax 

Increase in registration limits ..... 

Bad debt relief 

Excise duties 

Increase in duty on higher tar cigarettes ... 


- 15 

T 10 

- 15 

- 35 

+ 25 


- 10 

- 25 

- Total 



■ - 






a full year 

Inland Revenue: Changes te take effect ’Ju 

Relief for profit sharing? 

In'rrcaye in threshold for benefits in kind 

- 25 

- 3 



1 1 

urther becomes formally Insolvent, 
ent to Tobacco v 

les for It is ' proposed that from 

•The COM In 1979-80 will be £3m. fThe cost in 1979-80 will be £5m. 
for agricultural- buddings and £5m. for hotels. {The cost in 197B-S0 
will be £40 m. $ The tax loss wDl depend on the extent of participa- 
tion in profit sharing schemes, but migbt eventually exceed £100m.; 


Net income is earnings, less tax and national insurance contributions, plus child benefit. It does not include 
any means-tested benefit. 

National insurance contributions in 1978/79 are for a person not contracted out of the new pension scheme. 
Single parent families have the same net weekly income as married couples on the same weekly earnings 
except that a single family received £0.50 extra child benefit per week in 1977/78 and will receive £1.00 extra 
pdr week from April 1978. 

Child Benefit this table docs not take account of the interim increase in child benefit of £1.40 a week (70p 
per child) due next November. 

Elderly married couples 
(either husband or wife aged 65 or over) 



in tax as a 

Sing after September 4, 1978, the specific ihe estimate of the cost in 1979-80 is speculative. 

ic outlook to mid-1979 

incomes are to- allocation of ft* 
uvularly quickly, reserve- (over the wnoie nw 
Taking the period public expenditure) and foi 
le, average rates of likely level of shortfall- 
be close to those .of .External trade- and -balance 

financial statement alsorise incomes are in- auoc*uou ox me contingency gested. The.. 1976 advantage to year - is benefiting from an 

iribed the economic outlook., crewing^ 
tated: ; ■' f r- ■■ - toil .then: 

duetron y. 

._e Government ekpedt'; *' 
derate rate pf growth; ’ 
ul (GDE) of abour- 
... over the coming year. 
tisticat convention;' North - 

is valued at the relative 
)7D. Valuing oil at toe tw- distributive 
price of L975.< reflecting - the . 
oual accournmg eonvenuon 

sshs ii&rssssz sr "jsh.t zsssrs 

PSBR in 1977-78 are absent, id Gross pay equivalents of net income changes 

1 the retail A^naU dwtine Jj. S;f CaSt increase rises t0 7 °LnfribStiS This taW. gives the earnings increases that would have been necessary to produce the same increases in net 

volumes rose Of the Clearing hanks to the family income as are produced try the combination of the October tax reliefs, the Budget tax reliefs, the 
. antr miTmnfsm acceieratrivj vi nmv kji-huv during 1977. Thisf&»nce of export credit- • For April changes to. ehfid benefit and CTA’s. and the transition to the new pension scheme (for the contracted 

eIera1 5SiSSSs!Sti^«lS EStarSe taSsMetoSneSd * ^ O&D. wfput in 1978, hot the reflected' significant reductions 1978-79, the PSBR forecast comes ia), for single people, married men, and family men. earning £50, £75, and £100 per week. 

^ nniwtt! relationship- between 5o imports of oil and basic to 5 \ per cent, of market price 

i P i in^emSi ^ manufacturing w orld production and world trade materials . offset by rises in GDP, a long way below the 1975- 

Intial . increases in • 7.— Stocks tn manuractunng . a „ nli j r „ 1n to n^rsi^ a erowth imnnn* of manufactures. Some 1976 peak of 91 per cent 





charge for 1977/78 * 

charge for 1978/79 




of 1977/8 




tax as a 



of total 

of total 




















' fax 

in tax 


in tax 









per cent. 


per cent. 


per cent. 

Income all earned 









7003 • 





. 43 




































193 • 







. . 24.1 








. 737530 

-• 255- 
















Income half earned, half from investments 

Up to £4500 as above 





193 . 











• 115 





















ffSTirfiW-SSilV 52 SS.'TmU or A variant torarat, 
es of prfrote -f““5LS haih^o excS and oT trade in manufactures imports of manufactures u i to be x^-VariantTare a useful way 

« re &s - “ - was - 

lr eases. 

£50 per week 
■ week 

£ % 

£75 per week 



£ % 

£100 per week 

£ % 

Single Person 

Mamed Couple . 







(Wife not work Wig) 
Married Couple with 
• 1 child under 11 







(Wife not working) 

Mari red Couple with ' 

2 children under 11 







(Wife not working) 

. 531 






V V 


— me *ih 
■ rf rage pay ii 

»\^ jMSi 


blic — . . ...... 

Ill of this report and «n-; 

tCr , V SiriSTSS: 1 Tto renewed *to- betitivenessloVlowing the depre- forecart, the volume of imports Sort to . ^ # ^ 

—The forecasts aasttme that, crease in public consumption is matioqof sterling ‘ ouic vi v ¥ get world trade rising faster than 1 

■rase pay Increases in the year no more than tiie projected rise over, exerts rose 1:0 ^ ac the main forecast assumes. Most I OCll I ■ jTfM BTC--. •• I 

^“* ?P in August 1978 are to GDP. Thq forecasts provide, thaapastrexpenenceoi improve equivalent «P0rt volume, in improvement is on the B I IlB l J 

the average -for the as is customary, .both for a full competitiveness womd S* the forecast imports and export side. The figures show an 

■ «»’ " . , . J 1 n-TQ ■ adStion to GDP. Spared with 

round. Monetary 

policy assumptToas ate 

Went with the Budget pro- 
als. The exchange rata ls . 
en as determined primarily 
i market forces. -Labour cost 
ipetitiveness improves during 
’ jhly equivalent 

TAAMftwit/k Tii-Acnopfc i-rk mirl-l 979 rate. Both forecasts reflect the JhrSiIfn foreo& C n?^n!r rent AFTER the Chancellur’s speech, they reflect the 

Economic prospects TO mia iy/y continuing build-up in North S 6 °ig79 Tnd aSo the text of the White Paper on policy on pay. ■ 

Sea Oil produ c tion. _ __n ,1 .. W,I mIbsia/I. Thp l_Th# fnllnu’ini 

levels rougr 

1 Main 

trade per- 

a small improvement in the cash limits was released. 

4 A in,. it-rnr.p+ 1 . .1 « DUIdli 4 i — 

current account This, of course, introduction stated : 

evtic demand 
! — Both tax reductions 
effects on real incomes; of 
xer price increases are now. 
ouiating personal consump- . 
i, Beal personal disposable 
ames fell sharply during the 
t half of 1977 but have been 
ng strongly in recent months 
■ to the income tax reductions 
ounced last October, the- 
reflation of sterling in 1977, 
weak commodity prices. The 
. v .lget tax reductions will pro- 

Output and expenditure at cons(anr i970 
prices <per cent changes, ; first -half 

during 1977 an'd the weakness 
of commodity prices have led 
to a substantial improvement in 
the U.K’s terms of trade. While 
further movements, of this mag- 
nitude cannot be expected, it 

can be no more than illustrative 

Government’s blocks for other environmental 

services and housing investment: 


*^ Th sun - Pay and general admimstra- 

* J-Hv f [| |A AVAfinoAO 1 Afirl thft nvufirJn 

- ... i— Cash limits will be applied ijihils. ahv l | Ve expenses; and the nrant-ln- 

of the possible range of. out ' to mOsil central and local govern- Jl” aid to the Health and Safety 


Margins of error 
18— It is impractical to indi- 

ment services in 1978-79, as in -^ Eranloymenf^itnmine Commission, previously included 

•u.. — .-. oug years . The Sn SS ?« with the Department of Employ- 

set out to the a room- . f Emolovropm rathhhw k>t menr,s olber employ mcm ser- 

ibles. Table I gives ? e a nd°4^p®crivS}^Tie Sh !?£?*■" Th ? “4 mber . of W . eish 

. : 1978 to ’first half J979): 

Gross domestic product (at factor -cost) 

Consumers’ expenditure 

General Government expenditure on 

: goods and services - 

..Other fixed investment — — - 

■ Of which • 

. Private sector mac»» r aciunng .. — .. 
Exports of goods and services - 
5tockbuiIdtog (as per cent of GDP). ... 
Imports of goods and services 

. ■ Mann&ctnring production ~:» : **-* 

^ab^ScomS they can be Mancc of payments on oirrent acamnt 

** ected to show a very marked . : 

. (over 7 per cent compared -1978 First naif -. — -. • 

• a year previously) up to i-i, - fSft"!? 11 ■ 

■ middle quarters of 1978, fcl- 1979 First^ half T'Vlill" 

,.'ed by a much more modest public sector borrowing requirement (£bn. 

thereafter. . —in parentheses, PSBR as u percent- 

— The path of. personal cea- • . age of GDP at torrent market price*): 

iption In these circnmstances; Knandal year I977 : 78 ............. 

(till very uncertain; -Personri Fmancial year 1978-79 ‘ — • 

Gumption' usually lags behind Retail Price index (per cent change): 

‘ Income and fluctuates much Rourth quarter 1977 to fourth, quarter 

1878 '•«— — ........V. - 

• Second quartet- 1978 to second quarter 
























auuae cauuui us il range of « nee rtaintV bV - . 

seems reasonable to assume that ^ 0 f variants^ atomT An Stef tabIea A ? Die * ^ vt f 2 and 4 resprerireiy.”Wcash t M , . . . 

most , of the improvement will SSL] JrofoaSi i for S^ramrat, ]iniit on Nortt^n inland °? n L, c 5 sb b ^ks has been 

be retained into 1979. Some “Uve aPProacn * .to iiook at me jagiudiiig those placed m the neoartments (Nm ii n „Tj n . redui«d to improve the scope for 

improvement is also foreseen in w^^fnrecasts 3 A°Ship d Rhow amou,)l of assistance to c i M rin<; certain pavmenta to the *® fectiv ® finar i c 4 1 

the invisibles account with, a ^ he I e S^Srore In oS local * utboritl ? P the c emra i Northerh Trelan™Ele«n C iO' 1116 described m the 

continuing rise' In the balance SliS over ?SriS ofwo g° vera “ eDl throu f tl lhe . rate Service 8 nd some.minpr Vertices SSSS'h^iTSL *2SL in 
of services rather more than off- w^wts DUblish^ in grant and supplemen- n0 r previously subject to cash changes have been made in the 

setting a deterioration in trans- with P Se post-measures ^ grants. Table 2 gives the ,j roUs Grants to' local authori- EJu," 12 ° r expendlture into 
fers, interest,- profits and divi- f 0rpRairts published bv Press h® 118 * or ra P ltaI expenditure by ties for aerodrome development ^ s^n,,-i„ n 1070 ,v, Q 
dehds. The implication is that on ^ 2B October 1977 local authonti^ and certain have been hroueht into the rele- tS?h thn 

the current account is likely to faCtors ^ other bodies. The estimated ex V ant Department of Trade limit ggL 1 rSStS^JSaenmditura 

remain in surphm .tiuoaghout J^ffibiKty' of particulartorec^ts t f nal financul l Uf (D0T2 ?- There have also been 

the forecast period, though not theS figures at best a tte nationalised j industries, a few minor exclusions. About KJ* .!5£ C t h? ^5 W 5 

at the level of the exceptionally smde to the mareins of which a« a bo treated as a form two-thirds nf expenditure in the 
Bmrabte second^, of !»77. ^ tQ C tee^t^t HSU*** tor ls 'od'LS 

Prl ~* niey. do, however, “ gS^iSdiLS mito I 6-Provisional figures for the 

,hm ^ — that pJJSlc^^diturf" (tond „ f-Tha. new cash block estab- outturn of central government 

Prices -. ' forecast ; — — , — 

13. Retail prices should main- provide a salutary reminder that 

M. wubi wuutu uiuu- pruviue # tcuiiuuer U1BI ITvnendltiire " (fnvnH ■ waaa Oil 

ttto tile towerfrend^estobUshed forecasts con^nwer be a precise Swv LVpSSteS to Se Ushed. during 1977-78 to cover expendi tore subject to cash limits 

54 (4%) 
84 (54%) 

On the other hand. -lower 
tion maywell tend Id reduce 
savings ratio.- On. balancer 
savings ratio, will- probably 

54 (4%) 
84 (54%) 


last summer. This will probably guide to the outturn. F o r Budeet urban orogramme capita! ex- in 1977-78 will be published hs 

bring the year on year change example, the current account statemen «® ^ ^ penditure in England will eon- soon as possible after Deoart- 

down to 7 per cent by the forecast for the second half year tioue to 1978-79. New cash blocks ments have closed their books 

summer of 1978. The prospect for of the forecast period has 27-Tbe cash Umite have have been- created for : Enelish for the vear. Similar figures for 
1979 depends greatly on future deviated from outturn by. on derived from the planned volumae new towns' industrial and com- the capital expenditure cash- 
pay increases. However, even average, some 14 per cent of figures in the Wyte Paper The mercial Investment previously limits of local authorities and 
assuming further substantial GDP: to terms of the present Government's “^mature Plans [nclnded to The Department of certain other bodies will also he 
progress in moderating pay forecast this would imply a 1978-79 to 1981-82 (umnd. the Environment block for cen- published as snon as possible. 
■Increases, the year on year margin to th e_ forecast, for the 7049). As stated in the White tral and miscellaneous services: Details of the cash limits are 
increase may rise slightly to the -first half of 1979 of over £lbn. Paper on the Attack on Inflation expenditure by Welsh new towns, contained in Cosh f.unif.i 3978- 
flrst half of 1979. The trend this in cither direction. after July 31, 1977 (Cmnd. 6882), previously to the Welsh Office 1979. Cnwid. 7262. SO 35p. 



^tnancial Times Wednesday April 35 1978 



Forecasts of expei&ditilr^ gross domestic product 


£ miJ^oiv jrt lflTuyp’dre^ seasdoall^' adjusted 

new trading ventures 






Cowmen’ coo- 
gpoaaiwre anmutop 









raw) \- 

Investment,. TfitaJ 
24# . 12.950 

" • ^xporta 

. Wbtf m goads 
fixed : i*" ! ■ 

JmwttneOt services 

- ’-*» Total 
StocK-’.. •: final- 

", V- Gross 

• • " i. -. '. Domestic 

■ Qntwnrol 'adjustment- Product 
gQgd&^nd . la Factor at factor 



1,700' : 

13.100 , 

; -7,450 

■ im 



PROPOSALS on swall businesses Rollover relief for girts of bttsi' tuai distributions, the excess PARMER^ 
were ■ outlined by the Inland ness assets: Capital gains arising may be apportioned among the special measures- 

of the Exchequer to-day an- he rolled over to the donee than £5,000 after corporation tax 
nounced that, as foreshadowed in where the donor and donee for an accounting period of one 
October the Finance Bill will jointly so claim. Any retirement year however, none of its 
?onSn ’a numbe? of meLuros relief due to the dobor will be estate or trading income counts 
desired to heio small firms, as given first. Where the assets as relevant income {.paragraphs 9 
o hers wW?h will tS of have not been used wholly for (2» (3V. Schedule 16. Finance 
narti ofl a i- benefit to them the purposes of the trade or, in Act 1972); where this income is 
*ThSe follow the continuin’* the case of shares, the family between £5,000 and £15,000 it 
stud h y of the problems oF small company owns assets which are is abated by oneialf of the differ- 
firms undertaken by the Chan- not used for the purposes of its ence be^en -tacome Md 
i-ellor or the Dmihy of Lancaster, u-adc. an appropriate proper- £15.000. (The figures are reduced 
at the PrJme U llinfsters request, lion of the gains will qualify where the company has one or 
«« ^ conjunrtfon SftcWtor rollover This new relief more associated companies.) 

an d supersedes the existing relief in 

Secretary to the .Treasury „ — - . . 

the Parliamentary Under-eecre- respect of fitits of agricultural 
lary of State with special respon- property, which is therefore 
sibility for small firms at the repealed Tor girts made after 
Department of Industry. to-day. ■ 

rw.'Q?ifF T IX Retirement relief— new limit. 

Carry back relief Tor initial Where an individual qualifies for 
trading losses of unincorporated retirement relief in respect of 
businesses: There is to be a new gains arising on the disposal 
relief which will help individual after to-day of a business (or part 
entrepreneurs to get started of a business), or of shares in a 
I for example. the employee family trading company, the 
leaving employ inent to set up a maximum amount of the exernp- 
new business on bis own) bv tion will be increased. For every 
enabling them to obtain relief y, CJT b - v v ; b, ^ h bis age exceeds 60 
earlier than tinder existing law the new limit will be i £10.000 in 
for any losses made in the first P lace , of £4.000 (wuh a corre- 
years. sponding part for a part of a 

At present, an individual or year), rising to £50,000 in place 
individual member of a partner- of £20.000 at age 65. 
ship can claim relief tor a Replacement or business 

trading los^ either against total assets. There are to be two un- 
income of the year of loss or provements in the existing roll- 
rollowing vear {Section 168. over relief for business assets 
Income and Corporation Taxes disposed of and replaced. For 
Act 1970 j nr against future assets replaced after to-day a 

profits of the trade (Section Person carrying on two or more 
ITU trades, either successively or at 

Under the new proposals he the same lime, will be treated as 
Will, as an alternative, be able '! lh e separate trades were a 
to claim to carry back a trading single trade. Secondly, the relief 
loss sustained in the first tax ' s to be given to a shareholder 

year in which he trades or in a T®niily trading company who 

any of the next three years and owns an d replaces an asset, if 
set it against income of the pre- both the old and the new assets 
vions three years, including for “* wsed for the- purposes of the 
example his earnings from ein- company’s trade, 
ployment. This relief will apply CORPORATION TAX 
to losses sustained in 1978-79 or Small companies rate of cor- 
later. poraiion tax. Companies with pro- 

CAIMTAL GAINS TAX fits below a certain limit pay a 

These, figures are to. be increased 
to £25,000 and - £75,000 respec- 
tively, net of corporation tax, in 
respect of the whole of any ac- 
counting period ending after 
October 26. 1977. 

Apportionment: acquisition of 
businesses: A further easing r.f 
the apportionment rules is being 
introduced for those close trad- 
ing companies still left within 
the field -for apportionment and 
for close companies which are 
member^ of trading groups. At 
present these companies cannot 
claim the cost of acquiring the 
first business, for' example, the 

. 1976 first half 

second half 

197? /test half 

• second half 


. second haif 

197D.first half 

Pecentafle changes 
sive nature, fanners, except com- Second-half 1976 to second- 

panies, will be enabled to aver- half 1977 

age their, profits over two con*. Second hall 1977 to second 

secutive - years of assessment _■ half 1978 :... 

where the -difference between 1 ® 78 10 half 

them la 30 per cent, or more. 

The capital allowances (or ex- 
penditure on agricultural build- 
ings and Works are to be 
improved by .allowing 30 per 
cent, of the cost to be claimed 
in the first year, (instead of the 
present. 10 per cent) with con- 
sequential allowances of ten per 
cent, over the following seven 


• Threshold: As announced by 
the Chancellor in ' October 1977 
the threshold for liability to 
capital transfer tax was Increased 
from £15,000 . to £251100 for 
transfers after 26 October 1977. 

Business relief: The Chancellor 
also announced in October, 1977 
that the rHief for controlling 
shareholdings and interests in 
unincorporated businesses was 





-rao>-: v 69i3oo : . is,7<»> 

. 400 
100 = 







: 9.000' 
■ 9.550 

' rost^ 





POP Index 















< 1 , 100 - . 

. .980. . 
■ 800.. 
• 800' 





: 3,650 v 7,500 
3,750 ^7.000 
ym * ' 8.030 
IJdO. . S 300 



.C >. 



. 50 

■ 35200 »: 

T 300.-- 









- 4,760.. o24,400 
4350 ■■34350 
4900— 25,050 















. Percentage ■ 

at annual tale ‘ 

First half 1977 to second 

half 1978 

Second 'half 1977 to firsr 

half 1979 




... .H. 

& . : • 



* v ; '*r:\ 







l"i AU fl»trea aru baaed 

fflWMntUiUnit. -17 ^ 

Note: rtBore* In £ tn )U ion are rounded' to £30 cdflllon. Pe roc prise chamre 
CDP Index In tbe final colimm is cal culaxed" from anroanded nonibors. 



E5cr* fonojea : tewf ca Cowvroinlw and expendltore eatfetttH:-0n^|Gau^3eT7 
*re eal^dued f«an uunrondedf levels 'Jn' £ mtfflon and dies roMded-in’l per sent The 

r» ■ - ■ 

r. ■ 



up to 

IN His speech the Chancellor Examples 

proposed an exemption for an a Net gains . £2,000 
individuals -gains up to £1.000 in - Exempt £1,0 
a year, and reduced liability for 

being increased from 30 per cent, gains between £1,000 and £9300. 

need to repay a “first business to 50 per cent, and a new relief The chaitels exemption wilTbe 

loan.” or of acquiring a later 
unconnected business as a reason 
for not distributing income so 
as to avoid having their income 

For accountine periods endine 

at 20 per cent was to be given raised to £2^000. .The rate of tax 
for minority shareholdings in un- on the gains of unit and invest- 

quoted companies. There will be 
no limit on the-value of the trans- 
fers eligible (or these extensions 
of the relief, which apply to 

on or after to-day, the cost of transfers made after October 26. 
acquiring a trade will count -as 1977 . 

a requirement of the company's 
business for this purpose, except 
where the acquisition is from an 
associated company. 

Industrial buildings allowance: 
The change in the industrial 
buildings allowance rules 
nounccd by the Chief Secretary 
■to the Treasury in a written 
answer on 14 February 197S 
connection. with advance 
factories will be of particular 
assistance to small firms. 

This will enable a lessee who 
has paid a nremium for a lease 

Charges 'On. the disposal of 

meht trusts will be reduced to 
10 per cent. 

The Inland Revenue issued the Summary: 
following statement 

SMALL GAINS N et "ains 

It is proposed that for .1977-78 
(the year just ended} and sub- £ 5.000 

: i - Assessment on individuals qlly be required - to show in his 
.where the tax rid culatlon • will return total- 'chargeable' gains 
- be affected by the new proposals (before losses) of H300 or less 
Tax £1,000 at 15% —£150 will: not normally be made till except where the total disposal 
b ; Net gains £6,000 . - '‘‘-■-itAbr Royal -Assent- : ' proceed; exceed £5,000. 

Tax . w £GO0^ There may ■ be. cases ' where completing their 

- t£6,000-£5,000) • x 4-.= .£5Q0' before or shortly after ; to-day f ?. n ? s ^ whi ch 

■ : » . v - ■ - individual receives r- a capital include any capital Sams or 

■Total tat; - 44100 gains .tax assessment on., which Ihe tax yeftr 1977/78) 

‘ — -^tax has been ebarg^ unfles the take tins charge 

existing law but.dit whipb -le?s -,.- o ... 

tax would be .due .unde/ ..the completing their 

if--_ . 


charge ■ 
at 30% 

V £800 

heyt r ;. Budget .proposals. In . such cases X9re/70i taxjretiMm forms (which 

[■liiUVA-'M./ Incniuttflr Uri 1 T aiinant in**- Will jnClUde 

' any capital gains or 

defer payment of tax on the w h 0 se total net gains in a year ui E 

death of the timber owner hove i ?_• * ? j 

&r o I*'' assessment ‘ do^naT «SS g*' ^re^T^^ssls ’ no, 

not previously qualified for busi- ci 000 will 
— - retief.' Disposals 000 

uHer 00t - be charged to ^ceeding "n'OM, aha" the alter- ? e 'Where >ll ^raitai .gains tax ! tai'chatgeable- gains, “gains not 

capital gains tax. Where the gams native basis of ' charga .The excess of the amburit " which -exceeding '.£1,000 and- '^disposal 

Transfers to employee trusts : 

iiability will he limited to tax of Although losses - meuit^dl ; R 0 yal Assent. 

The conditions that have 

[ us “* £600 plus half oF the excess over during the year will Be : ^t off 
to be £5,000. This, marginal relief runs against gains of the year, losses J 

1 A fill m M^'rAA . - _ r ca'Caa 1 y j v r — _ j rn ' '...rj .* 

ning on April 1, 19T7, and sul> 
rTidTTFT *: ^ sequent years it is proposed to 

Gains arising on disposals, of reduce the fraction of eha rgeable 

Relief for losses on loans and specially reduced rate of corpora- ranre than 50 years of an 

laranff-D nnvniplllc- Thara tn (inn i-iv nn t-hnin inanma anli . . .. . . . ... . 

guarantee payments: There is to tion tax on their income and 
he a new relief from capital there «s a corresponding marginal 

ho Jj 0 exe J^Ption fand ont at • gains of £9,500 or brought 9 forward will be • used , ‘ . f?”.® more tMn £l 000 Wins included .for C 

i se capital oains tax rollover relief) are charged at the full only to the extent' necessary^ to ' ^ nrD . an , nrinw. Tax purposes in the 

!"■ rate of 30 per cent. reduce gains to £1.000: v, f. ' * gcTSi^^are -V i- 

duitrial buildin? ta qualify for dividual to ah employee trust 
industrial bu'ldhigs allowance are being relaxed for transfers 

.| ux. 

t profits of 

cains la?: when a loan used bv relief for those with following a joint 'election with on or after April II, 197S. The 

the borrower for trading pur- low a higher limit. These limits, the lessor 
poses has become irrecoverable, which last year were increased to STOCK RELIEF 
The lender will be able to set £40,000 and £65,000 are being Continuation: Small firms are 

individual will no longer need to 
give all his bolding,' uor will the 
trustees need to acquire sub- 

*■ 1 . . . • ■ - . * c* WUUllUdWIFMB VU 1 HXA JUJU*? 04 s *■ - — ■ — 

off his loss a^amsi capital gains raised to £50,000 and £85,000 res- particularly concerned about the stantially all the shares in the 

‘ company. Instead, it will be 
sufficient for the trust to obtain 
the majority qf . the - ordinary 

of the same or a later year, pectively for the year to March 
Sums paid by a guarantor of 31. 1978 and later, 
such a loan will qualify in a Apportionment of trading in- 

future of stock relief. The 
Chancellor of the Exchequer an- 
nounced to-day his intention to 

• . »• - • 

Central Government 

similar way. This retief will come or close trading companies, continue the pFesent-«t&ck retief shares, and voting, control, 
apply .to loans made after to-day. The exemption limit for appor- scheme indefinitely arid, subject The exemption will also apply 
. ‘ ' ' ‘ to any progress made in the 

able losses on such disp vv ^_ — „ c 

restricted. This £1,000 disposals trusts* from 35/1 04ths to 5/26ths. 
limit is being Increased for This has .the effect of charging 
197S/79 onward tq.£2i00.“ • ' such gains at IQ per cqpt.instead 
The marginal' sretlef. for: dis- of J7.t ^eit cent. The rate of CGT 
posals .where .the, proceeds payable /by certaih unit trusts 
exceed the exemption figure by ivith exempt holders and funds 
a small amount will be ex- in court: is also '.being reduced 
pressed in terms -Of: a ; restricted for 1977/78, onwarps to 10 per 
gain/rathen-fhaa. as at present cent. ' . ” , . _ . , 

of a : . restricted - tax . MR. This - The maximum, credit jjvaflanie 
change, which is needed' fb fit to .persons disposing, of. units in 

iifprise in s 
ir.MLR im 


rt will not extend to loans tionraent of trading income is to 
between spouses or between com- be increased substantially, 
panics wfr'ch are members of the If the relevant, income of a 

to transfers on death. Gifts to 
meantime towards a permanent common ownership or co- 
r . _ _ scheme, to introduce legislation operative enterprises nan qualify 

same group for capital gams close, company for a particular ■ next year to limit the build up for the reliefs jf fhoy ure made 



accounting period exceeds its ac- of deferred tax liabilities. 

via employee triisfi 

Budget . 

1978-79 forecast 
Before Alter.;' 
Budget Budget - 
Outturn changes changes. 

fia- with the new -marginal- relief naif -trusts on shares in'Jnvest- 7, 

-- 1 fnVnc ofToft ‘t 4-..^, mmiln aV TV firr ■ ■ — 


raph-.L. takes 


Consolidated Fund 


' Expenditure- .... 

Easing the lot of the farmer 

IN A STATEMENT after the 
Budget speech, the Inland 
Revenue said: 

The Chancellor announced that 
provisions would be introduced 
in tbe Finance Bill to enable a 
farmer to average his profits over 
two consecutive years of assess- 
ment where the difference be- 
tween them was 30 per cent, or 

The Chancellor also announced 
proposals 'Tor improving the 
capital allowances for expendi- 
ture on agricultural buildings and 
works. For expenditure incurred 
after to-day an allowance of 30 
per cent of the cost may be 
claimed in tbe first year, with 

profits would be the profit for or market gardening. This will 
the year o r assessment (and not apply also where a change of 
for the basis period) before partners is treated as a cessa- 
capital allowances, stock relief Don for tax purposes, but not 
and losses. where there is an election for 

If the profits chargeable in continuation of the preceding 
year one are £ 10.000 and those >; ear basis of assessment on the 

occasion of the change. 

Starting date 



National Loans Fund 
Consolidated Fund deficit 

las above) 

Other transactions: 

Receipts .... 

Payments , 

allowances of 10 per cent over “ ^ as,s period 

in year two are £ 6 . 000 , the 
fanner will be able to average 
the profits and pay tax on £ 8.000 
for each of the two years. Tbe 
profits of the third year would 
then be compared with the 
averaged profits of the second 
year, that is, £ 8 . 000 , to determine 
whether an averaging claim 
would be made for those years. 
- Losses 

A loss from the trade in the 

the following seven years. 

The first two years of assess-- 
ment to which these provisions 
may apply, are 1977-78 and 1978- 


The provisions outlined will 
he optional and will- have to be ■ 
claimed within two years of the 
end of the second year of assess- 

, . Formal claims for averaging 

, any . y f ar of cannot be’ accepted until the 
oe treated as a jrjoaflef gill becomes Jaw. In 
the meantime, where tax is now 
due and unpaid for 1977-7$ and ■ 

assessment will 

_ . . , nil ” profit. The loss itself will 

Farmers may also benefit from therefore remain available fur 
other measures announced by Sf Ser Sc apSroiriate pr£ ^e ana unpaid ror wks ana 
the Chancellor in the interests JSions^ftbe tSSXl sufficient information is available 

of small firms. These are . Partnerships 

Where farming is carried on 
by a partnership, it will be the 

described in a separate Press 

Details of the proposed legisla- 

L Averaging provision 
Those qualifying 
All individuals who carry on 
a trade of fanning or market 
gardening in the United Kingdom be able to 
will be able to claim the benefit provisions, 
of this provision. It applies for 
income tax only and wall not 
affect companies. 

Tbe averaging calculation 
Where the difference between 
the profits for two consecutive 
years of assessment is 30 per 
cent, or more of the higher of 
the profits for the two years, the 

to indicate, that an averaging 
claim for 1977-78 and 1978-79, 
would reduce the tax diie for 

Section \°5-» TaxS S K a whlcVwfn m^Tbe^made to the 

Section lSlr Taxes Act which Will h*™*tnp tn nnctmvn* nnvmp.nt 

to the arrangements for .dis-- 
claiming, or claiming a reduced 
amount of. the 100 per cent 

first year allowance for espen- Total net borrowing by the 
diture on plant and machinery. National Loans Fund ... 

Writing-down allowances • Other funds and accounts 

. Writing down allowanc&at 10 . (net) 

prireenL will be ^iven.-.on the-. 

balance of the expenditure not .Central government borrow- 

covered by the inftiii allow- ing requirement 

ance. The period over which 
these allowances are given will ■ ■■■ ■ - 

depend on tbe amount of the 
initial allowance. The follow- 
ing examples illustrate how 
the new rules will work. 

Example I 

The maximum initial allowance 
of 20 per cent is claimed. The 
allowances due in respect : of 
the relevant expenditure are 
30 per cent, in the' first year 
(20 per cent, initial allowance 
and 10 per cent writing down 

allowance), and a 10 per cent. — ; — 

allowance in each of " the Consumers expenditure 

subsequent seven years. - Public expenditure on goods and services '... 
Example 2 Private fixed investment 

37,742 • 38,773 ' . -44.706 / 

. 43,489 43,989 51,37$/ 

\ 4Z,74fi. 

-5,747 —.5^216 - -6.^2 


•/ ' 

-5,747 - 54116 “6,672 


5.300 5,i92 -6.400 

-7.1S8 -6,136. —7,640 



-7,635 -6^60 -.7,912 


+ 776 +1,666.' +1.935 


-6^5F -4,494 -5,977 



effect meril trusts will remain at 17 per 
cent, from 1977/78 and 1978-79. 
If wfirbe reduced to lO per cent 

f .An individual will not ; (^irm- -fbr ^979/80. : ^ ; ' • . 

“ i \ • - V ; ■ . » 4. .. *- 


? r-;/ 1 : 



to receive priority 

THE “TREASURY ^ issued ‘ ' tfie ' under ‘a credit, sale agreement 

S22te« . ^ 

issuing a notice restating the 
guidance tljat banks and finance 
houses are tasked to observe in'. 

Mmilk pi 

. The effect - of -this amendment 

aSSTdlS^a t^re^ -tt e mofo^ m lrn- ^Olfi. Et 

In particular, they arc asked - to mum repayment requirement on 
priority, to running-account- credit sale 

1977-78 Budget forecast and 
estimated outcome 

JjSnje 1 're^Sh^for "tamstment agreemejts. whwe thecasli pn« 
and the expansion ox .exports, dpe* not ecee.d £1,00 0. Other 
The' full, tet of the girl dance is credit-sale agreements will be 
set out fo- a Press release Issued subject to control, 
to-day by the Bank ..of Engjand 

i;- :~- 

Percentage changes second half 1976 to second half 1977 
(at constant prices ) 

(enquiries jnay be made to the 
' Bank’s Press . Office: telephone 
number .01^601 4411). . 


be eligible for averaging. In 
these cases, the claim will have 
to be made jointly by all the part- 
ners. Company partners will not 
claim under these 

between buildtaes and works are given et 

Inspector to postpone payment 
of a suitable part of the tax on 
farm profits. 

2. Agricultural buildings 

At present, allowances for 
expenditure on agricultural 

the profits of two consecutive 
years of assessment is between 
25 and 30 per emt of tbe higher. 

10 per cent per annum over 10 
years. The improved relief will 
consist of an allowance of 30 per 

% __ 



No initial allowance is claimed. Stockbuilding (changes in £m. at 1970 prices) (+250) 

The allowances due are 10 per Exports of goods and services 54 

cent in the first year, and 10 Total final expenditure 1 

per cent, in each of the sub- V“P°riof goods had services 

sequent nine years. This is Adjustment to factor cost 

the same relief as under the Gross domestic product at factor cost* 
present rules. 

Example 3 
An initial 









( 0 ) 





+ 0 j 

New issue 

* Gross domestic product figures are “ compromise " estimates. The 

-- Two- . changes - on . ^consumer 
credit are to take effect:— (i) 

The Bank of England axe inform- 
ing '- 1 Barclays Bank Limited in 
respect Of the Barclay carti and 
the ‘shareholding banks In the 
Joint.-. Credit . Card- Company 
(Access Cardh that the request 
matte in December 1973 at the 
behest of the Chancellor of the THE CHANGELLOB of ’ the* 
Exchequer, that they .should Exchequer announced in \ his 
require -monthly minimum re- Budget. - Statement the intro- 
payments ’(of 15 per cent.' of £6 duction of a new. I7th issue of 
whichever is the greater) from National Savings Certificates to 
cardholders has lapsed.. <ii) The replace the current 14th issaie. 
Secretary of Stare for Prices and The Treasury, in a statement 

;>i - 



\ O' r ' 

auu ww pvi ikiik 111 . uis ***e“s‘. _ , , ■_ 

of the profits for the two years cent- 


a marginal provision can be 
claimed which will reduce the. 
difference in profits between the 

■farmer will be able to claim that two years without providing fall 
the profits af the two years are averaging 

to be aggregated and one half 
will then be regarded for all 
purposes of the Taxes Act as the- 

Commencement and cessation 
of trading 

The proposals will not permit 

first year, followed by allowances 
of 10 per cent.' in each of the 
following seven years. - 
- - The Initial allowance 
The additional 20 per rent 
relief in the first year will take 
the form of a. new initial allow- 
ance. It will be possible to 

cent is claimed 

Ibaf average in respect of minor timing and other adjustments to of the- Hire-Purchase and Credit 
is per cent to per cent, uuoai some component series. Differences between the compromise Sale Agreements (Control) Order 

aggregate and components of the expenditure series. have been 1976 (as amended) by exempting 
writing down allowance)^ aUocated for convenience to investment .stocks. fro mall control goods purchased to 

The. Certificate will cost £5 and 
increase in value to £5.50 tax- 
free over four years. .The over- 

would then be writing down 
allowances of 10 per cent in each 
of the subsequent eight years, 
with a final allowance of the 
remaining 5 per cent in the 
ninth year. 

It Is proposed that the new 


profits of the trade for each of averaging of the profits of "either waive the initial allowance, or scheme of allowances should 
the two years of assessment For the first or the last year of to reduce it below 20 per cent, apply to expenditure incurred 
this -purpose the measure of assessment of a trade of farming The procedure will be similar after to-day. 



Capital allowances on 


Legacy provisions redefined 


new building costs 

10.27 per-cent assuming tax 
the basic rate. This compares wile _ 
7^- per cen^ net and IL5 per 
cent gross Mr the present 14th 
issue. Tbe maximum holding per 

person ~wHl be £ 2 JKH>. 

The increniients are as follows: 

AFTER THE Budget speech, the 
Treasury issued the following hotels, 

statement: - 

In announcing in his speech 

End of- 1 st: year 
End of 2nd year 
End.of. 3rd year 

THE Inland - Revenue issued the the- cost wiii-qaalif y^for-relief- if. Epd ; qf 4th 1 year 
following, statement on the follotfring tbe extension. It meets . 

Chancellor's announcement of the requirements above. 

Expenditure on a hotel build- 


42 p 

AFTER THE Chancellor’s have taken the view that the treatment described in paragraph April 11, 1978: they do not apply 1978 . 79 . the Chancellor raid that 
speech, the Inland Revenue provision dealing with deeds of one will apply to any written in- to income tax, capital . gains tax fae to adopt a system of 

issued the following statement : family arrangement or similar strument made imtiun two years or stamp duty. roIWnc targets The chance in no 

WHnn 47 of Instnuuems does not apply of death and varying, or disclaim- instruments entered into be- the Govemmenfs 

l97^mv?ri 7 es f tiS? ^ where a beneficiary seeks to ing a benefit under, a disposition f„re April H wiU continue to be imtintai? fiiTO 

nf J redirect property which he has of property (other than settled governed by the existing legisla- d tenai ^ ^ 

d A the ? lspositlori , s already accepted or from which property) forming part of the de* tion. However, the ‘ Inland 

under the deceased persons already received t\nie ceased person’s estate. Revenue wiU no longer regard h 

51 benefit The rule dealing wsth “varia- an instrument as outside the r'_ an ® e ’ 

it bt 


Thp rhnnrpiior annnnnpprf that ing incurred in connection with , Further Information both on • 
thp i5fntafil afi^» certificate under the Fire the new issue andonthe .exta^ . 

-PrecaiLtionsAct 1971 qnallfies fv sion terms for .maturihg.IJJh • 

D ro visions glvtng cap^ial^Jltiw. sllov&.'STSdS issue certifloites -iill be prov.* J . 

tne cosi_or construcnqni tfa tore ta a. aenarate Press Notice wnlcn 



or under 

t . . l SrrS control over the money supply. 
the Inland „ Kamtiall y , teeimical inWal 

the rules 

intestacy are varied by a “deed 
of family arrangement or similar 

They have also taken the view tions " will not be limited to scope 


* of that legislation solely on JjKLj 0 
grounds that It introduced a 

ass* a 

enable monetary 
be used 

biTanJ nt the SnifiriariL ’tSp reinpient is neither a under the wULit will- also apply benefited under the deceased per- 

oy any 01 ine oenenmanes. k__ „c . ^ nn’r min nr tk. ..i., ni intmhnv 

where property is redirected of the family 1 or .beneficiaries beneficiary who would not have 

tax a thareeabJe on ae dtotbia mem J er of fte family nor a notwithstanding that a benefiriary ren’s wUl or ihe roles of intestacy the end of baoKing To ‘qualify for the new- allow- THE Department Of Trade-.^d-; 

tax cnargeanie on roe neath_ ta hmefleiarv imrfpr will non. wtm «n an intPrest had. and who was nm* mpniher of tiic A Prt‘ 1978 (April 19) to the end „, 1Ci i rr. M , 

The target announced, in the 
Budget speech applies to the 12 
months from the end of banking 

ances on 
of new hotels 



of cost, and annual writing down 
allowances of 4 per cent on the 
more straight line basis. The industrial 

buildings allowance rules will . • i t- . 1 ^ 

apply, with some modifications. JVJoVe pr 01 Bpt€Q py tJbV Tlllp 


to the new allowance. 

moreorer ^adjusted as if the beneficiary under. the will. TJese who is giving up an interest had and who not a mei^er of the April ^ (April 19 ) te the ance a hotel musl tare at i east ^ B a^et propotols to' amend 

variation w “i i“ornorated in ^ matters arising from before the date of ^instrument famdy.__or that a beneficnaxy 1 ms 10 letting bedrooms, and — “ 6 ^ ' 

variation were incorporated in 
the dispositions under the will 
or intestacy. 

The section also provides that 
when a legacy or any. other 
interest in a deceased person’s 

(he Interpretation of the pro- taken possession of the property redirected a gift from which he Hereafter, the Chancellor expects serv |ces provided for guests 

vision have given rise to eon- or taken a benefit, had already accepted some advan- to roll the u^el ninge^ ronvard iu C i U( j e ti, e regular provisi 

siderable practical difficulty. The provision will not however tage For himself. " ““ 

It is accordingly proposed to apply where tbe variation or dis* This new practice will be 
redefine ip the Finance Bill ^he claimer is made for a considers- applied subject to the statutory 

provisions dealing both with tion which does not itself consist provisions which restrict the re- 

state is disclaimed gratuitously deeds oF family arrangement and of a variation or disclaimer opening of settled cases and in 
within two years- of the death, with’ disclaimers of legacies and affecting non-settled property particular paragraph 26 of 

” u — — * * — *“’•* other interests -in a deceased forming part of the deceased's Schedule 4 Finance Act 1975 (De- 

peraon's estate. estate. TJie new rules apply 10 termination of questions on pre- 

Uzuler the new rules the tax instruments made on or alter vious view of the law). 

the beneficiary is not treated as 
bavins made a gift 
Hitherto the Inland Revenue 

at approximately six-month 
intervals: thus this autumn the 
Chancellor would announce a 
target range for the period up to 
mid-October 1979. A. farther 
moderation in the rale of 
increases in earnings may take 
it possible to set a lower target 
range fur the next target period. 





^est ic ^ 



Banks expected 
to increase 

— v'~' A 

Industry disappointed at measures 


:s» a 


THE surprise increase in the 
Bank of E n g la n d's minimum 
lending rate from 64 to 7J per 
F en j- yesterday will probably 
lead to higher overdraft rates at 
the banks. But it is not expected 
v , ^ immediate effect on 
building society deposit and 
mortgage rates. 

The change was the first since 1 
early this year, when MLR was 
reduced from 7 per cenL, and 
■takes the rate- to its highest level 
since last August Lt is likely 
that the rise will be fully re- 
flected in an upward adjustment 
in the level of rates in the City 
money markets. 

The money dealers had been 
expecting that rates would be 
adjusted upwards at some time 
fairly soon after the Budget, and 
yesterday’s decision has simply 
brought this forward. It is pos- 
sible that the Bank -of England 
will be able ' to re-engage its 
normal market-related formula 
for determining MLR. which was 
suspended yesterday, if rates fall 
into line at Friday's weekly 
Treasury bill tender. 

The big banks yesterday said 
they would wait for rates to 
settle down before making any 
decisions on their own lending 
rates. National Westminster, for 
example, said that while it had 
not expected the use of the 
Budget to raise MER. it had 
expected some rise In rates and 
would consider its action as a 
result of the announcement and 
the market reaction this morning. 

If the banks follow the rise 
in their, own base lending rate, 
lifting it from the present 64 to 
74 per cent., the -change would 
put the cost of overdrafts to the 
top-quality corporate , customers 
up to 8J per cent. Other 
borrowers would pay up to lli- 
12 per cent 

A similar adjustment to the 

banks’ seven-day deposit rate 
would take it up to 4 per cent 
from the present 3 per cent., 
leaving the building societies 
still with a substantia) com- 
petitive edge in attracting sav- 
ins*. • • 

For this reason, the societies 
are not expected to react quickly 
-to the change. Mr. Norman 
Griggs, secretary.: general of the 
Building Societies Association, 
said the change would make it 
more difficult to get in savings 
from the public and would help 
the movemenCs competitors. 

Already the societies have 
seen some fall-oS in fbe level 
of their receipts. Figures due 
out later this week -will show 
March receipts of around 
£300m^ one of the lowest figures 
recorded since the middle of 
1977. : ‘ 

The societies are currently 
restricted in the level of mort- 
gage lending be cause of Govern- 
ment concern over house prices. 
This means -that they do not now 
have to attract quite as much 
new money to .support their 
mortgage programme. 


Mr. Griggs also pointed out 
that the increased tax allowances 
and the new tax band would 
help the societies by. reducing 
their tax bill under the com- 
posite rate. 

Nevertheless, the. societies 
would begin to show concern if 
their inflow 'dropped much*, 
further, and any farther general 
rise in Interest rates would 
increase the pressure. 

Mr. Griggs said that while 
yesterday’s change 'would have 
no immediate* effect, "if our net 
inftyw .keeps going* down and 
intensifies the eouncil of the 
Association may have . to think 
about a new rater structure.” 

from its traditional posl-Budget 
huddle last night with Ihe 
verdict that the Chancellor’s 
measures represented a move in 
the right direction, if only a half- 
hearted one. 

Mr. John Greenborough. presi- 
dent of the Confederation of 
British Industry commenting on 
the Budget, said: “The Chan- 
cellor said that the key to 
economic growth - and high em- 
ployment must lie in an improve- 
ment in our industrial perform- 
ance. His Bndget will not achieve 
this. It is a t politically timid 

“ He has done Ear too little for 
those who must lead the revival 
of our trade and industry — 
managers, skilled workers and 
the owners of small businesses 
who can provide so much of that 
extra employment. The Chancel- 
lor has not reduced the basic and 
higher rates of tax on earned in- 
come starting at 34 per cent and 
finishing at S3 per cent — a step 
they had all expected. 

While the overall amount of 
the Budget stimulus was not 
significantly different from what 
the CBI recommended, he be- 
lieved the Chancellor had lost 
an unprecedented opportunity to 
encourage the people of Britain 
to make the additional effort and 
take the kind of risks needed 
for trade and industry to prosper, 
Mr. Greenborough said. 

Some of the warmest reaction 
to the Budget concerned the 
proposals to assist small busi- 
nesses. The Association of 
Independent Buioesses said the 
deferral of Capital Gains Tax on 
the transfer of shares would be 
“an enormous help" to small 
firms, as would measures for VAT 
relief on bad debt and losses 
through insolvency. 

The association said, however, 
that it was “ bitterly dis- 

appointed” by the personal taxa- 
tion measures, where increased 
incentives were vital, it pointed 
out that top rates of tax should 
have been adjusted to begin at 
£43.000 to restore them to the 
1973 level, but the Chancellor 
had raised the level to only 

The Engineering Industries 
Association said Mr. Healey bad 
“totally avoided” any serious 
attempt to reflate the economy 
and bring down the level of 

Although the Chancellor 
declared his intention to encour- 
age engineers, the plea Tor com- 
batting the erosion of differen- 
tials for skilled workers bas been 
given no impetus,” an association 
spokesman said. The association 
emphasised that no incentive for 
plant relief hud been offered and 
industry would have to “await 
the pleasure of the Government" 
on the question of stock relief. 

Mr. Roy Close, director-general 

or rhe British In nitute of Man- 
agement. said the Budget had 
missed the chance to encourage 
the efforts of managers and 
other professional and skilled 
people. “The incentive con- 
tained in the Chancellor's 
Budget are loo little. His meas- 
ures go in the right direction, 
bnt only half a step in the right 

The Engineering Employers 
Federation described Mr. 
Healey's measures as “disap- 
pointing and insignificant." A 
statement added: “Tbe Chan- 
cellor bas given a realistic 
analysis of many of tbe prob- 
lems facing manufacturing in- 
dustry’ but has provided little 
assistance toward their solution.” 

The Institute of Directors 
called the Budget “ business- 
like ” but said it had not done 
enough to encourage individuals 
to find and serve their customers 
better. Mr. Jan Hildreth, the 

Institute s dire c-i or- general, said- 
the Chancellor's measures 
showed he “still believes in the 
power of the State and of the 
Whitehall Witches io stimulate 
the economy '• while the basic 
problems of low productivity, 
inflation and unemployment 

The Retail Consortium, which 
represents most retailers in this 
country, called the Budget 
** pedestrian and unimaginative ” 
but gave it a “subdued welcome.” 
It said the additional spending 
power created by the Chan- 
cellor's measures should help 

certain foods, like icc-cream — or 
done enough to help middle and 
senior management. 

Mr. Tom Boardman. president 
of the Association of British 
Chambers of Commerce, said: 
“The high public sector borrow- 
ing requirement is going to set 
off a new round of inflation. We 
arc also concerned that incen- 
tives are missing from the 
Budget for the highly skilled 
worker and middle and top 
niana?emem who have most to 
contribute to industry and com- 

The increase in MLR could add 

thanks to * Deep Throat’ — the 
person who leaked the Cabinet 
papers on child benefits in . 1976.” 

Aims for Freedom and Enter- 
prise, which represents several 
thousand * leading federations 
and companies, said: “ Mr. 
Healey's tax cuts still leave 
Britain up with Tanzania and 

Egypt as the world's highest 
direct tax payers. 

“They will do little for un- 
employment until the .Govern- 
ment and unions realise that IQ 
per cent increases of earnings 
and 2 per cent, increases in pro- 
ductivity mean mass redun- 

Our Industrial Staff look at 
reaction to Mr. Healeys Budget 

‘Not bad 9 says City 
as shares move up 

sustain the recovery in retail 
sales seen in February and 
ensure that the volume of retail 
sales for the whole of 1978 was 
about 2 per ec-nu up on last year. 

The Consortium forecast, how- 
ever, that sales would not really 
pick up until the summer. Even 
then there would be no question 
of a boom of the kind seen in 
1973 and 1973. 

The biggest recovery, it said, 
probably would come on the food 
side. This was because the Chan- 
cellor had given most relief to 
the lower paid who spent more 
proportionately on food than the 
better off. Food sales, it pre- 
dicted, would probably also 
benefit from the increase in child 

The Food Mannfaclurers’ 
Federation also said that it was 
“disappojmrd ■* by ihe Budget. 
The Chancellor had not taken the 
opportunity of removing VAT on 

an extra fSOni. to the cost of 
local authority borrowing, the 
Association . of Metropolitan 
Authorities said. However, the 
association welcomed the in- 
creased public expenditure out- 
lined in the Budget and the aid 
for industrial development which 
would help inner city areas. 

Mr. Healey was praised for 
raising the child allowance by 
Mr. Frank Field, of the Child 
Poverty Action Group who said: 
“ This ' Budget marks a major 
breakthrough fur alt children 
and the Chancellor deserves full 

The present child allowance of 
£2.30 is to rise to £3 a child in 
November ar.d £4 a child from 
April 1979. 

Mr. Field added: “November’s 
increase in child benefit repre* 
seals the biggest-ever increase 
in support for children. 

“We no* have the beginnings 
of a real child benefit scheme 


FIRST CITY reactions to the 
Budget were that it was “not 
bad.” Share prices- edged ahead 
in late trading after the Chan- 
cellor’s ‘.statement to leave the 
FT 30-share index 7.1 up at 470.4. 
The pound was also firm. 

Mr. Healey's emphasis on 
resisting inflationary influences, 
his slighter stricter target of 
8-12 per cent fur the control of 
money supply and the 1 per cent, 
rise in minimum lending rate 
attracted a good deal of atten- 

There was some doubt whether 
the Chancellor's hope for a fall 
in gilt-edged interest rates later 
this year was justified. However, 
against the continued anti- 
inflationary background, present 
yields on long-dated Government 
stocks are considered attractive 
enough to make small rises likely 
this morning in gilt-edged stocks, 
which were not traded after 
3.30 p.ra. yesterday. 

In the share market, there 
was relief that no' general in- 
crease was being made in excise 
duties or VAT. 

In the drinks sector Distillers 
ended 6p up at lSlp, while 
Imperial Group added 3p to 77p 
in tobaccos. Among leading in- 
dustrial shares. ICI closed 2p 
better at 355p, Bcecbam lOp 
higher at G50p and Glaxo 13p up 
at 52$p. Marks and Spencer edged 
up lp to 14Sp. 

Relaxations in the rules for 
capital gains tax were also seen 
as providing some incentive for 
the small investor to take more 
interesi in the market. There was 
considerable disappointment, 
though, that Mr. Healey had not 
reduced the highest rates of in- 
come tax in a way which could 
have provided a spur to wealthier 
entrepreneurs to undertake 
further industrial ventures. 

In the money markets, the In- 
crease in MLR had already been 
discounted to a considerable 
extent and upward adjustment* 
were limited. The rate for three 
month prime commercial bills, 
for instance, moved up by only 
about 1 per cent, to some 7} per 

Sharp rise in sterling 
: after MLR increase 


STERLING showed a brief but figures, rose to 623 flpm 62.2, 
-sharp improvement yesterday wiule ferward iteanmtAagainst 
- afternoon, following the rise of the dollar widened as result 
1 per cent to 74 per cent in Of the increase in ML 
IBank of England Minimum . Elsewhere, foreign- 
-Lending ate.. trading was fairly quit* 

_ . : . „ , the speech by President 

.. Foreign exchange, dealers sag- on ^ anti-inflat* 

gerted that tins was the major gramme _ The dollar was 
factor in the Bndget mfluenp^ against the West cffian 

STS 3 15 

lmU mid evp 


* t 

the pound. Ii touched a best 
level of 51.8815, from a: low 
point of 31.8745 in the early 

The rise was fairly short-lived 
however, and sterling settled 
back to a closing level- of £L8780, 
a rise of 15 points on the day. 

The pound's trade-weighted 
index, on Bank of * England 

D-mark and Swiss franc at the 
close of business in London; hut 
was a little weaker in-ierms of 
the Japanese yen. 

• Its trade-weighted.' deprecia- 
tion. according'. iTo Morgan 
Guaranty of New Turk. recorded 
little , change at- ft fl-27 per ceot, 
compared witb.v'6.2S per cent 


School milk plan, Will 
have £10m. EEC? aid 


‘.THE PROPOSAL to raise the age 
: for providing free * milk to 
schoolchildren from seven- to 11 
-will mean that Britain will be 
■ able to make more use of the 
EEC subsidy scheme which Mr. 
'John Silkin, Agriculture 
Minister, pushed through the 
ouncil for Farm Ministers in 
russels last year. 

At the present rate of subsidy, 
(Britain could now receive about 
TIOm. from Brussels in a full 
,car. depending on the response 
made to the proposal by the 
i £ local education authorities. 

But there are proposals, before 
e EEC Farm. Ministers to in- 
crease the' Community contribu- 
1 ..i&on to national programmes for 
|||[|rree school milk tp. 50 per cent- 
v.ud if this is accepted It would. 
_ .'increase the figure to about 
'I 35m. a year.' 

• „ The EEC scheme Is due to run 
* ' ’.'or at least five years from last 

** / Britain’s original scheme for 
.. free school - milk - provided 
' - ■-■hildren up to. 11 with free milk 




until the programme was cut 
bade in 1971. 

all education authorities 
decide to take part in the scheme, 
about 2,300.000 more children 
will receive school milk drinking 
an extra 175m. more pintas-a- 

Although the Community will 
be contributing about £15m. a 
year to the total cost of the 
scheme, tbe extra cost to U.K. 
public funds would be about 
£13m. a year. Ministry officials 
said yesterday. 

Mr.. Silkin said: “ Nutritionally, 
it' is the right move; agricultur- 
ally. it is the right product.” 

Mr. John Owens, director 
general of the Dairy Trade 
Federation, said : “The federa- 
tion- welcomes the Government’s 
decision to extend the availa- 
bility of free school milk. 

“ This means that Government 
is making use of EEC aid to Br 
oand the .consumption of liquid 
mine in the U.K. and so to reduce 
the EEC surplus.” 

More London homes for 
vital workers 



’.THE Greater London Council is 

■ o extend a scheme allo c a ti ng 
-■ iart of Its housing stock to help 

oru ponies keep vital employees 
vho are. unable to . find accom- 
• .Ynodatioii. 

. The scheme is at present 
tppiicable only to the inner 
■ities. The extension to cover 
tutor London areas is likely to 
. ic criticised by families on the 
* . lousing, waiting list who fed 

■ het queue is being jumped. 

! But tiie GLC believes it import- 
ant to encourage skilled workers 
- , :nd companies to slay in London 
’j. ; . nd to try to halt the outflow 
V Vif jobs and people.. • 

It is making available a torn! 
. 625 homes, mainly flats and 

*,• l.naisoneltes, hi the current year.- 
»- ‘ *hey will be offered to com- 
.anies -in both inner and outer 
reas and -allocated through the 
?LC valuation and - housing 


,!0(i h ' 


The departments wHl inter- 
iew the companies involved and 
. -dll allocate accommodation in 

■ ' /hat it believes are genuine 
‘■.rases of need. 

- Last year only 94 homes out 
r.f a total of 500 offered were 

■ > jkeu up by companies. The GLC 
■ ■' V?els this was because the offer 

y -as restricted to manufacturing 
. -- - ■ idustry .in inner London.' The. 
i-;ew scheme, however, will also 
raver service" industries and 

■ • uier London areas. 

Dr. George Bailey, vice-chair- 
man of the GLC's Industry and 
Employment Committee, said 
yesterday: “ Giving housing help 
to industry is part of our overall 
effort to keep jobs and people 
in Londom 

“London must have .a 
balanced cross-section of resi- 
dential workforce. Housing one 
skilled man, vital to a com- 
pany’s future, can often mean 
increasing job possibilities for 
ten- usskiHed workers.** 

Livingston new 
town attracts 
250 extra jobs 

By par Scottish Correspondent 

SEVEN NEW companies bad 
established themselves m 
Livingston in the first three 
-months of this year bringing 250 
extra jobs to .the Scottish new. 
town, says Mr. George 
McPherson, the development 
corporation's industrial develop- 
ment and estates manager. 

He forecast that one large 
company would soon, announce 
that the setting up of an opera- 
tion in the town, which is 13 
miles from Edinburgh. “ This is 
one we have, been working on 
for about seven years and is 
another great capture.” 

. . : *.\>* ■ -■••• 

•• 'V' 

:• -'-.a? a-V/. .t' ••• 

If the engineering of the Mercedes 200 impresses you, 
Or the luxury of the Peugeot 604 appeals to you; 

reassures you, 

. . 5 

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■ /&* 

;S4;*' ■ r 

a, ■ •.. ....... 

,n - - — ■ 


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engine; and a full complement of high luxury equipment 
from fibre optic head and tail lamp monitors to a quartz 
digital clock! 

Datsun engineers are precise people. What they design on paper 
they reproduce exactly in the factory, not accepting any compromise 
for the sake of mass -production. 

And with the New Laurel Six they set out to offer the best 
car qualities in one impressive 2 litre luxury saloon. Now you can see 
how well they have succeeded. 

High quality engineering is immediately apparent when you see 
the superb finish of the New Laurel Six and hear the quiet << dunk”as 
the doors close. 

The luxurious interior is spacious and supremely comfortable. 

Deeply upholstered seats are scientifically designed to keep you in 
comfort, and the appointments are worthy of a car many times the 
price.There are wall-to-wall deep pile caipets, thickly padded head 
restraints for the front passengers and comer head rests to those in. 
the rear seat; a push-button radio and auto-reverse stereo cassette 
player to entertain you while you travel; a highly acotrate quartz digital 
dock to keep you on time for business appointments; an economy 
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a vamty mirror in the illuminated glove box; a spedal compartment 
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4 cylinder unit 

Engine Max. 
Size Speed 

(litres) (mph) 

Government ftaf cqnsomptian teste (mpg) 

Constant ■ Constant Town Driving 

56 mph 75mph 

2.0 (manual) ■ 103 

2.0 (automatic) 99 

31.7 239 21.2 

28.8 ‘ 22.1 23.3 

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The new Laurel Six is priced at just £4101, which 
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Pdas qtokiadadtSpitMGuTn, YATmiinatia rrrlscet h-.Vs. 



' .-jV* 



, -Financial, Titties Wednesday April 12. jOTS 


Healey spreads the load 

THE NEW moves announced in 
the Budget for the early repay- 
•* ment of some of Britain’s large 
- official borrowings from over- 
31 seas and the raising of a new 
loan in New York mark an 
“'•important step forward in the 
Government's policy of spread- 
- ins the burden of repayment 

• ‘This was started last autumn 

when Britain faced debt rcpay- 
' “ ment s of S2Qbn. before the end 
of 1984 with loans of between 
■•■• S3ibit. and S5tbn. maturing in 
*" each year between. 1980 and 

Most of this debt has been 
raised — either by the Govern- 
’ * ment itself or by various public 
sector bodies such as national- 
'. c ised industries — in the last five 
' years in order to finance the 
large current account deficits of 
T J 974-76 and the capital outflows 
during the sterling crises of 
" 1976. In face oE this large 
burden of debt repayment, and 
in particular its concentration 
-n during the early 1980s. the 
■l" Government faced a difficult 
choice of economic priorities. 

Repaying all the debt from 
" current acount surplus would 
involve a very tight restraint on 
■“ the rate of growth of domestic 
output: after all the estimated 
surplus of £750m. this, year 
t$1.4hn.) would be less than 
r, ‘ half what would be reauired to 

• * cover repayments in the early 


As Mr. Healey pointed out, 
repaying the whole of the debt 
would add to the problem nF 
current account imbalances in 
the world and would not be 

consistent with the need lo 
expand the U.K. economy. The 
extreme view of this position, 
which is held by the Labour 
left-wing but not by the Govern- 
ment, is that the U.K. should 
not be concerned at all with 
maintaining a current account 
surplus since the borrowings 
should be capable of being 
refinanced fairly easily in a 
world of oil-producer surpluses. 

On the other side, it has been 
argued — for example by the 
Bank of England— that while 
there is scope for new borrow- 
ing it is necessary to provide for 
a net reduction in debt on a 
scale that is appreciable in 
relation to maturing obligations. 
This makes it desirable for the 
current account to remain in 

Mr. Healey stressed yesterday 
that the Government’s aim was 
to combine net repayment of 
debt year by year with new 
borrowing to spread the 
maturities. He did not spell out 
what this meant for the current 
account though he has previ- 
ously indicated that the Govern- 
ment is aiming for a surplus 
over the nest two years. The 
implication is that there may 
have to be a -reduction in the 
official reserves in years, such 
as 1978. when repayments are 
more than the current account 
surplus. But total reserves of 
more than $20bn. do provide a 
cushion to allow this and to 
permit intervention in the case 
of pressure on sterling. 

The Government initiated this 
policy of spreading the burden 
of debt repayment last autumn 
and since then about $lbn. of 
public sector debt, covered by 
an exchange guarantee from the 
Government, has been repaid, 
or will shortly be repaid ahead 
of the due date. ■ 

In addition, the Government 
revealed in January the pro- 
posed early repayment of ?lbn. 
of the U.K.'s borrowings from 
The International Monetary 
Fund and Mr. Healey announced 
yesterday that a further $lbn. 
is to be repaid early to the Fund 
this year. This means that just 
over a half of the U.K/s bor- 
rowings from the Fund will 
have been repaid. 

When these early repayments 
of $3bn. are add*d to the total 
of ' nearly Slim. of official bor- 
rowings anyway maturing this 
year this means that $4bn. out 
of CObn. originally due by 
1984 will have been repaid this 
year. This is three times the 
estimated current account sur- 
plus for 197S. 

The result is .that the hump 
of debt repayment in the early 
1380s has been flattened notice- 
ably, though hardly yet re- 
moved. Although precise figures 
are not yet available, the effect 
of the moves so far announced 
is that instead of £3£bn. due in 
1980 the figure- is now about 
$2£bn.. while the 19S1 total 
has been reduced from $5}bn. 
to just over $4ibn. 

On the other side the Govern- 
ment has been arranging new 

finance with ’maturity dates after 
the early 1980s. A total of about 
5630m. has been raised, or nego- 
tiated, mainly from various EEC 
institutions. Mr. Healey yester- 
day announced that a bond issue 
is to be made by the Govern- 
ment in the New York market 
in two tranches of 7 and 15 
years This is significant both 
as a contribution to the general 
refinancing programme and as 
an indicator of the U.K/s in- 
creased financial standing. The 
British Government would pro- 
bably have felt unable to go 
ahead without ti»e triple A rat- 
ing awarded by the U.S. rating 
agencies. . 

Mr. Healey was still on his 
feet in the House of Commons 
when Britain filed its registra- 
tion statement for the bonds 
with the Securities and Ex- 
change Commission. The 
borrowing inajrks a striking 
departure in British borrowing 
policy. Though few details are 
yet available,. it is being awaited 
with considerable interest in 
New York. 

The offering consists of two 
tranches, the first of 5200 m. in 
seven-year bonds, due in 1985: 
the second of $150m. in 15-year 
bonds due in- 1993. The bonds 
are to be offered in early May. 
and arp being underwritten by 
an international financial group 
headed by Morgan Stanley, 
First Boston Corporation, and 
Salomon Brothers. 

The price of issue will not be 
known for a week or two. and 
tiie underwriters to-day refused 
to comment on possible yields. 

However,- the two key U.S. 
ratings agencies, Moody's and 
Standard and Poor’s have given 
the bonds a triple A rating, the 
highest awarded. The fact 
that their rating was qualified 
as provisional is cot expected to 
have any effect on the final 

Although Britain has in the 
past been reported to be 
interested in borrowing on the 
U.S. capital market, it- is the 
first time since the war that it 
has actually taken the step. (A 
year or two ago it was widely 
reported to have .withdrawn 
after learning that it would not 
receive a triple A. The fact that 
it now has this rating is an 
indication of the improved 
British international financial 

Becaase Britain is not a 
regular Sorrower in New York, 
the terms and performance of 
its bonds will be awaited with 
interest Two major inter- 
national borrowers, Australia 
and Canada, have come to the 
U.S. market recently and though 
conditions are not strictly com- 
parable, the terms they received 
might provide indicators. Last 
November, Australia raised 
5125m. in seven-year bonds. 
They were issued at par with 
a coupon of ’8.25 per cent. How- 
ever. the bond market has 
greatly weakened since.' Teftns 
would be different now. 

Peter Riddell and 
David LasceUes 


towards closer alignment 

IT IS now two years since cadi when the supply estimates wot® spring ' or dniy a substantial 
limits were introduced as- an 7 published, and outinrn -prices'p^ ., with ' supplemental*! es 
instrument of short-term finan- (throughout the financial year coming' later when inflation 
rial control on public spending, from now until March 1979). prospects for the rest of a 
They have been applied to about This . “ inflation allowance ’’ year are dearer, 
three-quarters of the ~ central varies from . block r -td block - Cash, limits were intended to 
government’s voted, expend!- according to - its- cost. malce--np-,assist in the control of govem- 
ture. the capital ' spending. ^ other factors. For the/health- ment _ spending. Their main 
budgets of local authorities, re- service, a figure of Jrist over effect so far has been to con- 
gioiial water authorities, arid. .9 per cent has been allowed, tribute substantially to the 
similar bodies; and the external. The average for all 122 blocks recent shortfall in public- ex- 
financing requirements of JJe ; is around- 7 percent, / "■ • ./penditure (they were resnon- 
nationaksed industries. The.. s . .. _ - , affile ,for about half of last 

principal exceptions are- pro- : - . .• ‘ . . undershooting) 

grammes suchas social 'security.- - v 'Tft' *n« n 

benefits and regional develop- _ "is inevitshle^Sh 

ment grants where, once the .‘Separate WajS -* mtefidlSfo be^dlhSf nofa 
policy and rates of paymenL . * . frrget - Juith^Sr^depart! 

.have been set, expenditure a This change , is a move, to- meats may tend-to "be cautious 
largely determined by the flQw vWa rds a closer alignment.- of i n making their estimates in 
of applicants. , .'cash limits and the supply 'order to guard against uccer- 

A White Paper setting ; out estimates. At present public tainties. A shortfall; provision 
the .forthcoming- year's / cash expenditure figures are. prg- qf £lbn a gear Jits accordingl y 
limits has thus become an'estab- sente'd in three separate ways; been, allowed in the latest pub- 
lished part of the annual spring m volume terms in. the annual lie' expenditure White Paper, 
budget rituaL But these docu- public expenditure White Paper. ' : The ..Treasury believes how- 
merits have so far tended to be for .three to five years, ahead; in ever that growing familiarity 
singularly uninformative: theythe spring supply estimates, .with the system will gradually 
merely set out the limits for (and later supplementaries) at bring about a closer match be» 
each of the 122 blocks into prices then ruling for tWeen estimates and outturn. It 
which cash-limited programmes ing. year; and in budgeted out- has already assumed that the 
have been divided for 1978-79. ..turn prices in the cash limits fio&l outturn for last year will 
.An innovation this year. White Paper for the coining show a smaller shortfall in ceh- 
however, is a table comparing, year. • • - '-' tral government programmes 

for central government pro- Apart from changes in the- than the 3} per cent, registered 
grammes the cash linutewitlrway in which central govern- j n the first half As time goes 
the equivalent provision in. thement programmes are arranged <m. too, the Treasury itself 
1978-79 supply estimates. . .••■in. the supply estimates, the -should be better able to judge 
From this, it* is possible \\o main question- to be decided which -departments put up the 
calculate the allowance'- which will 'be whether the- whoie^ ot less reliable figures, 
has been made for pay and price the cash limited' pto^ammetF; . •••• 
increases' between last inorithi would be presented in' the 

Colin Jones 



Partly what the unions ordered 

Industry dismayed at health tax 

If the Government has firm 
plans to carry its pay restraint 
apparatus into next year, the 
Chancellor gave no hint of it 

This time there were no 
strings attached to the tax cuts, 
and Mr. Healey contended 
himself with emphasising that 
.• falling inflation and his tax 
reductions meant that wage 
bargaining could be conducted 
” against the background of a real 
' increase in living standards. . 

“I do not call in this Budget 
„ for any sacrifice," he said. 

• As expected, he is to seek 
early talks with the TUC and 
j. CBi on the eebnomy. And while 
the rate of earnings increase, 
he said, would be particularly 
'' important from now on, he said 
those talks would be to see what 
' the “ proper policies” should be 
on both pay and prices. 
Although the total Budget 

stimulus was only somewhat 
over half what tiie TUC was 
looking for-^and particularly 
disappointing tor the unions on 
public expenditure — his treat- 
ment of income tax and re'mtro- 
duction of a lower rate band of 
25 per eent., was both in size 
and kind, almost exactly what 
the TUC ordered. 

There were other concessions 
too. on child benefit, the age 
allowance, school meals and 
milk , and money for getting new 
hospitals into operation. An 
extension of job subsidies had 
already been announced by Mr. 
Albert Booth, Employment 
Secretary, along' With the deal 
with the EEC bn changes to the 
Temporary Employment Sub- 

The Chancellor said that 
although the present voluntary 
policy had checked the earnings 
rise more than its critics ex 

pected- it was still too high. The 
increase in wage costs would 
have to be much lower in the 
next round than this, or the 
budgetary stimulus would be in- 
effective. But he also observed 
that the main responsibility for 
wages must He with trade 
unions and employers. 

Such success as the present 
10 per cent limit has had owes 
much to the uneasy acquies- 
cence of the TUC and to a 
majority decision of its General 
Council not to take up arms 
against its enforcement 

But a campaign is now being 
mounted by the Transport and 
General Workers Union to turn 
that acquiescence into positive 
revolt if the present tactics of 
setting an earnings target and 
employing sanctions against 
employee for its enforcement 
is tried again. 

Only when yesterday's Budget 

has been properly digested by 
the unions, and the summer con- 
ferences get . under way — 
starting with the -Scottish TUC 
next week — will it be clear 
how much support that cam- 
paign draws. 

- Few union ‘ leaders would 
join Mr. Sid Weighell of the 
National Union of Railway men 
in advocating ' some formal 
arrangement, with a monitor- 
ing body to determine how the 
wage increases .are to be shared 
in the next round. But quite a 
number seem ready to live with, 
if not support, smother uni- 
lateral pay policy provided that 
it is genuinely flexible. None 
believes that the imposition of 
a ceiling, as in tbe present 
round, would work again. 

Ministers themselves had 
planned at the start of the pre- 
sent round to lift the lid gently. 

by allowing productivity deals 
outside the guidelines, and 
waiving th e rules in deserving 
cases. The first part bas gone 
ahead, but tiie second scarcely 
at all. 

In this sense,, the “orderly 
return to free collective bar- 
gaining” has been slower than 
was expected. 

The Chancellor’s main calcu- 
lation as he sits down with the 
TUC must be whether— at least 
in the' private sector— he can 
loosen the wages corset, if not 
remove it entirely, and let. the 
trade unions get on with their 
traditional bargaining job. . He 
could even deride tiie time is 
ripe for a continental experi- 
ment in pay planning— an 
incomes, policy which is not 
merely a wage restraint policy. 

Christian Tyler 

Relief that the Chancellor had 
decided not to impose further 
general tax burdens on drinks 
and tobacco was tempered, with 
dismay in the tobacco industry 
at the imposition of a so-called 
“health tax" of 7p on a. pack 
of cigarettes delivering/. 20 
milli gr amme s of tar or Above, 
and in the drinks industry that 
no credit period had been intpo- 
duced on duty which still has 
to be paid Immediately on with- 
drawal from bond. -- 

The industry’s reaction to .the 
surcharge on higher tar brands' 
could take several forms. First, 
those cigarettes which are -on or 
just above the dividing tine can 
be changed to reduce the' level 
of tar delivered and so escape 
the tax. Secondly, the nrdy^fry 
can absorb some tiie increase. 
Both Imperial, whi£h owns 
Walls and Player, and Gall ah er 
with Benson and 'Hoflges. Senior 
Service and Pari/Drike, have 
kept prices of plain cigarettes 


Four things you can 

jhigh. ....... . end promotiqn of high tar 

- ; This was in deference to Mr. cigarettes. 

David Ennals, the Health Secre- In - the lari: ten years the 
tary, on the change of the tax average tar delivery of 
structure on January". 1 this cigarettes has been reduced, 
year. This based tax on a speci- from - 34 ■ milligrammes to 17.5, 
fic amount per thousand and hi the last five years the 
cigar ettes plus a -percentage of share of the market t held by 
the retail price plus ,. VAT, cigarettes now affected by the 
rather than the : British surcharge has • fallen from 74 

system which was based on the P®£ cent., to 14 percent 
weight of tobaccp uaed. , . - 

t — 
>- ■ 

Both companies feel that they 
should/ have been given. longer 
than 7 September 4 to bring down 
gradually the level.of tar in any 
particular brand. Neither tikes 

comeyMown in price, but. only — II . “ 8150 
Rothinans, whose Piccadilly Heale * has eagedy seized the 
plain is now below 20 mg. chose, opportunity to the anti- 

to* pass on any of the saving to smote® lobby by. imposing as 
t^ie customer.- soon as. possible the maximum 

7 Imperial and Gallagher may surcharge under the derogation 
nW consider following suit; negotiated by Britain with the 
especially as both believe that EEC health and- finance minis- 
thq. imposition of the suxcharga- ters before -Chrirtanas. At the 
breads the spirit of a three-yerfr same time bo ms kept the 
agreement with the: Govern- majority of &mokri* happy, 
menr to v reduce . .the overall / f-<- c*: 
level of tar deliveries arid to otuart Alexander 


l.Will it really solve 
your problem? 

Your own. particular materials-handling 
problem is a unique combination of available 
storage space, accessibility; types of materials 
bandied and so on. 

It’s all these, added together, that dictate j 
the most suitable and economical lift 

.trucks for you. 

Obviously, the larger the*fange of lift 
tmeks available, the better your 
chances of obtaining exactly the right 

Lansing make the largest lift truck 
range in Britain and Europe ^small 
to huge, standard and specialist, 
electric and- engine-powered. To suit 
your own particular needs.. 

2-What does that 
"good service”promise 
really mean? 

Ask some sharp questions. 

How many skilled service engineers 
does a potential supplier have in Britain 
-and how close is the nearest? (Lansing 
have the most- nearly 600 nationwide). 
I What is their local parts availability 
& like? ( Lansing averages more than. 
90%).* ' 

If you can. talk to an existing 
customer and see if a supplier’s 
promises check out in practice. 

< 80% of Lansing sales are to 
satisfied existing customers). 

3. Are you 
confusing price 
with cost? 

The thought of saving the price of a 
holiday on a new truck seems attractive. 
But additional running and spares costs, 
and breakdowns, could eat up that saving 
quicklv-and leave youlosing. 

Cost-effectiveness is the only figure 
that means a thing. 

With Lansing, that means not only a 
first-class truck at a fair price, but ■ . 
unbeatable product support, easy main- 
tenance, thorough driver-training. : 

It's the only reliable way to save. . - 
We know. - 

4.Tomorrow corned 
only too soon. 

• As the years go by a lift truck should 
reliably keep.on working, keep on being 

Only a lift truck manufacturer with 
extensive experience both of his 
business, and of yours, really knows the 
toll that time and hard work can take of 
a lift truck- arid can build trucks to 
fully meet that challenge. 

So take a look arouridyou- anywhere 
in Britain. Again and again, you’ll find 
that the “old faithfuis^ of all shapes and 
sizes bear our names. 

Do you know any other hfttnick 
manufacturer with better credentials 
thamthat? . • 

Those are just four things you mightoverlook when'buymg a Hft truck. (And if ^ 
vou’d rather not buy- Lansing rent and lease, too.) Ring Lanang now anp get tne 


lb OUU iW-, g» : W 

foil, factual s tory.Itll/pay y ou,han d somely. 

; i^nandal Times Wednesday April 12 1973 





When the Lib-Lab pact led the 
Government early in February 
. launch its consultative 
document on profit sharing, it 
was dear that one of the three 
systems of employee share 
- ownership spelled . out in the 
document had considerably 
-more political promise than the 
others. It was called Method 
pi. and it was the one designed. 

Mr. John Pardoe and other 
leading Liberals after -they had 
seen the first two. schemes pro- 
posed by the Inland Revenue. 

Now Method HI has received 
the formal blessing • of the 
Chauicellor rn his Budget 
speech. . He also - announced, 
tiiat the ipcome tax concessions 
involved, which will be spelled 
out in the Finance Bill, would 
operate from the next financial 
year (1978-80), and. that- there 
would be a limit of £500 a. year 
to the value of shares which 
could be allocated to any one 
employee. This top limit, he 
said, was to ensure that the 
system would “not simply give 
Telief to the highest paid." 
years and on only 25 per cent. 

’s point for participation 

Under all three .methods in 
the consultative document a 
company’s full- workforce would 
be eligible (so excluding, fur 
example, schemes designed 
specially for senior executives). 
They all involved the share 
ownership, form of profit 
charing, and 'So did not envisage 
new lax -concessions where 
a -. company, simply gives 
employees profit-related cash 
handouts. This was so to take 
account of the Liberal Party's 
primary interest - in making 
■ employees ' . . ' ■ • shareholding - 
partners in a company. . 

. Method IU involves a com- 
pany making a- bonus allocation 
of up to £500 per employee each 
year which would' be used, 
through specially created trusts, 
to purchase 'shares at full 
market value. The shares 
wonJd have 'to be held for five 
years. - The main concession 
involved would be that income 
tax would not have paid on 
the initial value of the shares 
till they are sold, and then only 
on a gradually reduced amount 
— on 50 per cent, of their 

acquisition cost after five to ten 
after ten years.. Capital Gains 
Tax would however be payable 
on profits above the acquisition 
cost. While the shares would 
be held by the trust, all divid- 
ends and voting rights would 
be held by the individual 

The other' two options 
involved fewer tax concessions. 
One was primarily based on the 
shares being' available at a dis- 
counted price, coupled with 
some income and capital gains 
tax advantages. The other did 
not involve any bonus handout, 
which meant that employees 
would have to find their uwn 
money to acquire shares. 

Method in is the option 
which has received most 
general support from those 
organisations, ranging from the 
Confederation of British 
Industry and the Engineering 
Employers' Federation to the 
British Insurance Association 
and the Stock Exchange, which 
have put their views into the 
Inland Revenue during the past 
two months. But there have 

also been calls for 
be given as much flexibility as 
possible, and the Government 
will probably continue to come 
under pressure to include more 
than Method III in its Finance 
Bill. The CBI would like to 
sec all three methods included. 

Other suggested changes 
which have been submitted 
have included a proposal from 
the CBI that the maximum 
should be raised from £500 to 
£1,000 a year, ‘while the EEF 
said the qualifying periods for 
tax concessions should be 
reduced from five and ten years 
to two and five. 

The British Insurance Asso- 
ciation said it liked Method IU 
because it was simple for 
employees to understand and 
did not discriminate against 
existing shareholders by requir- 
ing shares to be issued at less 
than market price. The Con- 
sultative Committee of Accoun- 
tancy Bodies said Method III 
was "likely to be favoured by 
employers despite the likeli- 
hood of considerable adminis- 
trative burdens on the com- 


The Government has also 
been asked by various organisa 
tions to give existing share- 
holders the right to decide 
whether their company should 
start an employee share owner- 
ship scheme, and to find some 
means of protecting employees 
against losses since their 
savings would be committed to 
the companies which employ 

The CBI and other organisa 
tions also want the schemes 
enlarged to involve the 
employees of companies with 
out quoted shares. Their objec- 
tive is to ensure that employees 
of foreign-based multi-nationals 
and close companies are not ex- 
cluded. In addition, they want 
a group of companies to have 
separate schemes for individual 
unquoted subsidiaries so as to 
make the share bonuses as 
closely identifiable as possible 
with an employee's place of 
work so as to bring out as much 
as possible the participation 

John Elliott 


relief for capital gains 


two very welcome capital gains 
reliefs which will be of "help 
to businesses. 

At present, when an individual 
or a company guarantees a bank 
overdraft on behalf, say, of a 
businessman or an associated 
company, no tax relief Is avail- 
able if the guarantee is called 
upon. Now, subject to meeting 
certain conditions, -it seems that 
the guarantor will be able to 
claim payments under a guaran- 
tee as an allowable capital loss. 

The other relief relates to 
loans made to. businesses. At 
present, such loans do not nor- 
mally fall within the capital 
gains tax provisions, and the 
Revenue has always resisted rep- 
resentations for them to be 
brought within those provisions; 
possibly because loans, would be 
more likely to result, in losses 
than gains. . However, how 
appears that the Chancellor has 
at last relented. . 

The detailed legislation on 
these reliefsis likely to be fairly 
complex, to ensure that artificial 

capital losses are not created 0 During the committee stage whether days of absence in a 
and that gifts are not dressed up of the 1977 Finance Act, fiscal year should provide tax 
as loans in order to obtain loss Treasury Ministers promised to relief in that year or in the 
relief. - ' sec whether tax reliefs could later one during which its profits 

0 The Chancellor Jbas extended be S iven t0 those of self- were taxed - Here the revenue in- 
the annlication of the special employed who work abroad a dicates that absences in 1978-79 
corDoration tax ■»& of 42 per substantial part of the time. The will give relief in that year, cal- 
cenh applicable to companies Revenue document published ciliated in whatever profits fail 
whh Profit? P November 4, 1977 looking at the to be assessed for 1978-79. 

. p feasibility of this, indicated that The Revenue’s view of the 

Previously, the rate. appliedif there could be no equivalent for relief and its value was dis- 
proffts did not qxcrod £40,000. the self-employed to the cussed against a background 
This level has now been in- employees’ 100 per cent, tax assumption that the individual 
creased to £50,000. .Alsio, mar- freedom for absences of 365 would always receive his tax 
ginal relief is avaUable if profits d a y s or nrore. advantage at the time the twice- 

are .above £50,000, so that the yearlv tax bills were paid — 

full 52 per cent rate only ap- Secondly, because any scheme an a *ssumplion which fails to 
plies to profits 'above £85,000. would be complex to administer, recognise that there can be very 
These .changes relate to the year it might well need to be few partnerships in ibis country 
ended March 31,1978. ■ restrictive — perhaps limited to which allow partners to draw 

In line with the Capital gains individuals spending ISO days th e i r shares uf profits gross, 
tax charges made .for indi- abroad rather than the 30 days *r ax relief for an individual 
viduaJs, a charge has also been which trigger relief for em- p arlner n ^ s ^ ^^^yjshed 
made in connection *wlth the Payees. The proposals bow put f T(>m jts effect upon the cash 
effective rate of ca rp«jation tax forwards specify 60 days abroad held by the partnership -as part 
on chargeable gains ft /author- as V 3e mimmum nu to~ er to of its working capital prior to 
"" proved fluffy- paying it over to the Inland 

s been The complexities of the pro- Revenue, 
to 10 posals, and the Revenue docu- 0 The relief mis-described as 
nded ment made much of them, retirement relief is one which 
stemmed from the question presently exempts from capital 

ised unit trusts and 
investment trusts. -This 
reduced from 17i per 
per . cent for the ' 
Marqfi 31, 1978. 

gains tax the first £20,000 of 
gains realised by an individual 
over 65 on the sale or gift of bis 
business. Retirement is not a 

The Chancellor has now in 
creased the tax-free figure from 
20,000. at which it bad stood 
since 1974. to £50.000. The pro- 
portionate figures for a tax- 
payer over 60 but under 65 at 
the date he disposes of his 
business are £10,000 per annum. 

What the Chancellor has not 
promised is a review of the sec- 
tion itself— it is renowned for 
obscurity and arbitrariness. For 
art unincorporated business it 
deals only with gains on those 
assets which are themselves of 
a type within the capital gains 
tax. For ncorporated businesses 
the relief frees only a part of 
the gain on the shares; that part 
related to the chargeable assets 
owned by the company.. itself. 
The formula which sets out this 
concept often results in the un- 

David Wainman 




cut the poverty gap 


j soon. 

MR. HEALEY has not quite 
met the demands of Die poverty 
lobby, but h e ha s progded 
sufficient f£ 2 »!Z!S£an' :$or an 
election address on the theme 
of “ we gaVe you the children's 
Budget." ' There are three 
principal elements' to this. 

The first is, of coarse, the 
increase in Child Benefit. A 
recent addition to the system 
of social security. Child Benefit 
replaces the old Family 
Allowance, with a signi fi c a n t 
difference: It is not taxable. In 
theory it is financed by the 
phased withdrawal of the tax 
allowance for children, but in 
practice part of its cost has been 
met by the Exchequer as a 

Until this month the benefit 
iwas worth £1 for the first child 
and £1.50 for each succeeding 
child, pins ah extra 50p for the : 
first child in one-parent families. 
In a two-child . fiamay this pur 
£130 untaxable cash a year Into 
■the mother's purs®. - 

From this month the benefit 
is increased to £2.30 per child, 
plus a £1 bofius for one-parent- 
families. That same another of 
two children, in a two-parent 
family, is now cashing weekly 

chits 'to -a totai^Palue of £239-20 
. a. year at the#ost Office. 

M-r.-Bealesp Budget puts that 
total^3l2 in November 
— £B..per Jnild and a £2 bonus 
for one-parent families — and £4 
per cM or £416 per year for 
the tvip-child family next . April. 
Tbusrin one year the cash value 
of Qbild benefit for the average 
two-child family will have 
increased by 220 per cent 

This is still not quite what 
-was asked for by the TUG, 
which wanted £3.30 this Novem- 
ber, or the "Low Pay Unit" 
an organisation similar to the 
" Child Poverty Action Group,” 
which has been -talking about 
a rise .lo £4.50 (“at constant 
prices M) next -April. The 
reasoning behind the pressure 
.for such increases has been 
sound, even if the figures have 
.6ehn a trifle optimistic. 

First, successive Budgets over 
the past ten years have reduced 
the value of income transfers 
paid to families relative to those 
paid to pensioners. The value 
of -, child .. tax allowances and 
family allowances (latterly child 
benefits) fell from 9.6 per cent, 
of average gross income for a 
twochild family in 1964-65 lb 

5.9 per cent, in 1977-78. The 
Budget -increases should cer- 
tainly start -to reverse that 

Second, increasing payments 
to families, based on the 
number of children, is a direct 
attack on poverty in an area 
where it is most easily 'discern- 
ible. .Third, an untaxable pay- 
ment . of . this kind bridges the 
“poverty gap" since it is paid 
;wben you get a job. Social 
■security benefit is paid net of 
child benefit; the incentive 
effect, would be strongest if the 
latter could one day be made 
significantly greater than the 
former. The benefit is, in short, 
■part of the foundation of a 
system of negative income tax. 
- Child Benefit apart, the Chan- 
cellor has also attached some 
window-dressing to bis “Child- 
ren's Budget." The cancellation 
at the proposed increase in the 
price of school meals in Nov- 
ember will mean a transfer of 
some £68m. from “contingency" 
to “education" (a small part 
will go to extra milk) but we 
are. surely only an election 
.away- from the restoration of 
this cut. 

.For the cancellation is In 
direct contradiction of the 

January Expenditure White EEC contribution would ■ be 
Paper's statement that it's fore- £15.3m., two-thirds of it from 
casts allow for a “ progressivfeAthe levy on. the British dairy 
reduction” of the subsidy on industry, 
school meals by 1980. Last \ The January White Paper 
autumn the school meal charge b*ed its forecasts of spend- 
was raised to 25p, which is about i ng 0 n school milk on the pre- 
half tlie average cost The in- sent rate of subsidy, as intro- 
evitable widening of that gap duced in May 1977. The scheme 
over the next year will pre- rung for five years from that 
sumably mean a greater propor- ,j a t e and provides for a Com- 
tionate increase in the charge munity contribution to member 
later on. states' school milk programmes. 


Perhaps the most electorally 
potent of all the “Children's 
Budget" measures is the an- 
nouncement that in future local 
authorities may, if they wish, 
provide free school milk to 
children aged between 7 and 1L 
It was the withdrawal of this 
service that led to the cry 
“Mrs. Thatcher-r-Milk Snatcher” 
when the Tories were in office; 
it is the EEC subsidy for school 
milk that makes restoration re- 
latively cheap. 

If all local authorities take 
up the opportunity the net extra 
cost could be £13m. in a full 
year, assuming that the Com- 
munity accepts the proposed 
higher rate of subsidy (equiva- 
lent to 4ip per pint against the 
present 3p). On this basis the 


Other social goodies in the 
Budget package will be des- 
cribed in full electoral detail by 
the relevant Ministers in turn: 
for example, the £50m. on a 
health budget of £6.2bn. (a dif- 
ference of immense insignific- 
ance). or the more useful, and 
childreo-oriented £40m. for 
school and college building: 
Meanwhile, Mr. Healey has with- 
out doubt taken a step forward 
on Child Benefits (which should 
now be uprated annually since 
The tax allowances they replace 
are not themselves there to be 
indexed) and if he has added 
some flim-flam to that, this is not 
a year .In which such an 
approach could be regarded as 

Joe RogaJy 

Campaign pays off Rise on the earnings tide 

. FARMERS- COULD s pay less 
-^l-tax as a. result of the Budget 
. concession allowing them to 
average their income over two 
years when profits fluctuate by 
r .#30 per cent, or more. And, 
Mr. John Silldn, Minister of 
. ' ^'Agriculture claimvihey will 
be encouraged to invest in new 
buildings and farm improve- 
ments by. the measure allowing 
them to claim tax relief in the 
first year of up' to SO per cent 
of the cost investments,, writing 
the remainder .at. Iff per 
. -v^-eem. a year over seven years. 
■-* ' At present allowances for farm 
; --/buildings or works are granted 
at ten percent, a y.e *5 over .ten. 
fears.. : . : ' >.. y - " 

The National Farmers’ Union, 
hich has campaigned for a tax 
veraging system , for . more 
han 30 years, gave a warm 
welcome to the Chancellor’s, 

“ The NFU considers, this to 
a good budget for the farm- 
ing industry,” a statement said 
in a rare display of enthusiasm. 

“ The improvement in the 
agricultural buildings allowance, 
should encourage, a more 
balanced approach to invest- 

ment . in. the years ahead." y ' . . 

Farmers are also expected to THE Government is announcing 
benefit- from the proposed the., 'annual pensions upra-ting 
deferment of capital gains tax -early tiiJs year, with, the rale 
on -the gift of business assets tor a. single' person being 
and raised retirement reliefs, increased from November by 
» -j * ( l b £2 per week lo £19.50 per week 

Mr. Silkm said of the ax and ttat for a married couple 
averaging scheme: This reform ^ ^ £31.20 per 

should . both help to release case this repre- 

addiU 0 iial.fHnds for Afrtndit a nA cent> uplifti ^ 
since .faimersywill pay less to ^ in the 

through the evening-cut oTthe year and £ L 3bn. On the 

peaks and troughs ro their . ... The new rates of 
profits; and help ..them to plan secu rity benefits, 

their investment better, by. ^ costs, are being 
removing the need to take over- 

hasty ■ investment decisions to . 

years of high.- profits." Increases in old-age PO»ow 

/ u " ' j are -entirely separate from 

But he ; ..stressed other changes announced to the 

measure-, would apply only to M in that the Government 
wortang farmers. Faim com- ^ a statutory obligation, under 
panies would-be excluded and ^ gocial Security Art 19 7 5i TO 
the relief would not apply -to _ rwalufi sncial secU rity benefits 
landlords' incomes from lei at 0 jj Ce a year to maintain' 
3ani ‘ their value. It is not even 

The new ^capital allowances ^necessary for the increases to 
will match to some extent the. he announced in the Budget 
100 per cent depreciation .The last year’s increases were 
granted on all machinery ‘dealt with separately, 
purchases. ; Under the Act, the response 

Tfthn Cherrineton and pto'ty.'.for Uprattog the benefits 
, tests With the Secretary of State 
Christopher ranees for Social Services. He has to 

revalue pensions and o flier long- 
term benefits in line with earn- 
ings or prices, whichever is the 
more favourable, and short-term 
benefits, such as unemployment 
and sickness payments, in line 
with prices. But -the Treasury 
has considerable influence in the 
decision-making over, the level 
of increase. The pension costs 
had been allowed for- in the 
January White Paper on public 

The objective of laying down 
this method of revaluation is to 
ensure that pensioners share in 
the rising living standards of 
the country, but underpinning 
the pension so that it does not 
lose its purchasing value. For 
the previous two upratiugs, in- 
creases have been based on 
forecast price movements since, 
because of pay policy, prices had 
moved ahead of earnings. ' 

But now the situation had re- 
turned to that of earnings mov- 
ing ahead of prices and hence 
the increase has to be based on 
earnings movements. It was re- 
vealed late , last month,- that 
there bad been a dispute be- 
tween the Treasury and the 

Department of Health and Social 
Security over the extent of the 
rise. The Treasury wanted the 
increase limited to the expected 
rise in earnings, while the DHSS 
was pushing for a much higher 

It would appear that the 
Treasury view has ' prevailed. 
The 11-4 per cent, increase is 
more or less in line with fore- 
cast earnings over the 12 
months from last November, 
the date of the previous up- 
rating. Even so, this represents 
a 4-point real rise in pensions 
as quoted by the Chancellor, 
but it will not alter the level 
of pensions as .a percentage of 
national average earnings. 

The Chancellor's announce- 
ment has also confirmed the 
Government's intention that 
pension rises -will-, not occur 
more frequently than once a 
year, despite pressure from 
various pensioner groups that 
annual rises cause undue hard- 
ship and that a six-monthly in- 
crease would provide . greater 
protection against inflation. 

Eric Short 


No inflation-proofing 

TWO YEARS ago, after an 
internal examination within the 
inland Revenue of the possi- 
ozlity of inflation-proofing capita) 
gains i ax, the Chancellor con- 
cluded that he could not justify 
it. He could not contemplate 
protecting from inflation the 
value of deposits held jn savings 
banks and the building societies 
and he therefore did 'not feel 
able to offer inflation-proofing 
to the beneficiaries of capital 
gains. " 

To anyone who studied the 
discussion document the con- 
clusion comes as no surprise. 
Although the Minister of State 
at the Treasury (Mr. Dentil 
Davies) had undertaken to look 
sympathetically at the problem 
of the taxation of gains which 
were only money and not real, 
both the Minister and the dis- 
cussion documents stressed thar 
any solution must be “as uncom- 
plicated as possible, so that it 
will produce as few administra- 
tive problems and as little extra 
work as possible for both the 
Civil Service and the ordinary 

The document itself examined 
two main possibilities: a taper- 
ing relief and indexation. The 
gain on. a disposal, it was con- 
sidered. might be reduced by 
one-tenth for each complete 
year since the asset was 
acquired, so that the gains tax 
would have ceased to operate 
for assets held over ten years; 
or alternatively, the acquisition 
price might be indexed. The 
first would have been an 
extremely rough and ready 
measure of inflation proofing, 
applying to gains whether they 
resulted from inflation or not. 
The second, provided a satisfac- 
tory index or set of indices could 

be found, was concerned pre- 
cisely with inflation. 

‘But both measures gave rise 
to complications. For example, 
each required that the precise 
date of acquisition should be 
matched against ' disposal; 
wherever holdings were not 
bought or sold in. their entirety 
(as- often with shares and land) 
this would be difficult and 
would cut across existing share- 
pooling schemes. . Similarly roll- 
over provisions would become 
much more complicated to apply. 
The tone of the document sug- 
gested that no solutions could 
be. discovered which met the 
criteria of simplicity and avoid- 
ance of extra work. 

Instead the Chancellor has 
fallen back an another sugges- 
tion in the discussion document 
which has nothing to do with 
inflation as such but just seeks 
to mitigate the impact of capital 
gains tax. He proposes that The 
first £1.000 of net annnal gains 
for individuals should be 
exempt, with a lower rate of 
15 per cent on the gains be- 
tween £1,000 and £5,000 and 
marginal relief for gains 
between £5,000 and £9,500. 

This new measure would re- 
place the present provision 
(which the Chancellor said was 
not widely understood) by 
which, where it is to the tax- 
payer's advantage, half the 
year’s net gains up to £5,000 
and the whole of any excess 
are, in effect, treated as income, 
instead of the whole gain being 
charged at 30 per cent. Another 
change of principle is in the 
form of exemption. At present 
gains are exempt where the 
total disposals are under £1,000. 
Henceforth the exemption limit 
relates to the value of gains. 

It Is a paradox that this is a 

measure which Is preferred to 
comprehensive inflation-profing 
on grounds of administrative 
complication and cost for tax- 
payer as well as revenue: for 
exemption by reference to dis- 
posals was first introduced in 
1971 instead of exemption by 
reference to gains precisely in 
order to reduce compliance 
costs to the taxpayer. 

It had been found that not 
infrequently taxpayers (or 
potential taxpayers) had had 
to pay heavy bills to professional 
advisers to work out their net 
capital gains simply to estab- 
lish that these were -below the 
exemption 'limit and that they 
were not liable to tax. Such 
situations will now recur, though 
the level at which the exemp- 
tion is set will make a big 
difference. Clearly, anyone with 
annual disposals under £1,000 
(the present exemption) must 
necessarily be free of tax under 
the new proposal for exempting 
gains under £1,000. 

The- upshot of the proposed 
changes is a substantial reduc- 
tion in capital gains tax liability 
for individuals whose annual 
net gains rise to quite a sizeable 
figure, the concession being 
greater for high income 
receivers than for basic rate 
payers, since the latter 
benefited from the replaced 
“alternative charge.” 

As to the general principles, 
the Chancellor has once again 
resisted measures which would 
have moved the tax system in 
the direction of thoroughgoing 
indexation. Further, be hus 
done so in part on the basis of 
an argument which he has 
flagrantly ignored in the past, 
notably on VAT 

Cedric Sandford 


Mauled but not knocked out 

the tax avoidance industry is not 
entirely unexpected, although 
the industry had hoped it might 
escape with a less savage maul- 
ing. Tax planners have played 
a cat-and-mouse game with suc- 
cessive Chancellors. No sooner 
would one avoidance scheme be 
legislated against than the 
planners would produce another. 
Secrecy could usually ensure 
that it would be effective for 
two or three years, the time 
taken before full details name 
to the attention of the Inland 
Revenue. Because Parliament 
dislikes retrospective legislation, 
the normal procedure was to 
legislate only against schemes 
entered into after the date of 
the announcement that they 
were going to be attacked. _. 

Mr. Healey has now decided 
that, me “tune naa cume mu oiuy 
lo slop toe paruCUMtr acnemes 
we *uow about out to ensure 
mat no senemes or a similar 
nat. urn can oe marxeiea in 
lucure." v.onsequeuuy ne has 
deemed to maxe an example of 
one on toe aenbmes ne 
mocking in toe tor-incoming Fin- 
ance Bui. This particular scheme 
is “commodity straddling" and 
Mr. Healey is proposing to 
block it retrospectively to April 
6, 1976, about 19 months before 
the date when the intention to 
legislate was announced. Com- 
modity markets in order to re- 
use of transactions on the com- 
modity markets in orders to re- 
duce the liabilities. 

Typically, an individual who, 
for one reason or another, ex- 
pects to have an abnormally 
high tax liability in a particular 
fiscal year might benefit from 
these transactions. If the large 
tax liability relates to 1977-78, 
he might in. say, February 1978, 
enter into two separate com- 
modity transactions, one for a 
future purchase, the other for a 
future sale. 

Provided the price of the 

commodity moves between then 
and the end of the accounting 
period-say April 5, 1978— the 
individual would find that one 
contract at that date was show- 
ing a profit and the other a loss. 
On -normal accounting and tax 
principles he could take relief 
for the unrealised loss but does 
not have to bring the unrealised 
profit . Into thogp accounts. 
Shortly after April 5, he would 
terminate both, contracts' and in 
cash terms .the two” contracts 
should more or less cancel one 
another out The realised profit 
then becomes taxable in 1978-79 
but the taxpayer's other income 
would probably be much lower 
in that year than it was in 

This basic scheme does not 
seem to have been attacked, 
■"What T6is"b?en attacked, how- 
ever, is a variation involving the 
individual joining partnership, 
with a company to carry out the 
transactions and then leaving 
the partnership before the 
contracts were terminated. The 
object of tiiis was to enable 
the individual to escape taxation 
on the ultimate profit on the 
futures, -while still obtaining 
relief for the loss. 

The second scheme being 
attacked will be dealt with 
along more traditional lines. The 
proposal to plug a loop-hole 
under the tax law relating to 
relief for payment of premiums 
in lieu of rent was in fact fore- 
shadowed in a statement made 
by Mr. Joel Barnett in Parlia- 
ment on December 3, 1976. It 
appears that the' Treasury first 
became aware of the loop-hole 
in late 1976. In broad terms, it 
was possible for businesses with 
large taxable profits to 
.eliminate or reduce their tax 
liability by artificially creating 
a large deduction for offset 
against their profits. It was done 


by selling a properly and 
shortly afterwards buying it 
back at a much lower price. 

Present legislation says that 
in this situation the first 
vendor will be taxable on the 
difference between the sale 
price and the re-purchase price. 
The second seller is entitled to 
a corresponding deduction 
against his taxable profits. Tlie 
first vendor needed to be a busi- 
ness with large accumulated 
losses that could not otherwise 
be utilised for tax purposes. 
The second seller had to be a 
•business with substantial 
current trading profits. This 
business would initiate the 
scheme in order to wipe out its 
tax liability'. This loophole is- 
closed from December 3, 1976. 

The remaining tax avoidance 
schemes dealt with by Mr. 
Healey' will" be counteracted 
with effect from Budget Day. 
Both relate to Capital Transfer 
Tax. One of these devices he 
described as “avoiding the CTT 
charges on' discretionary trusts,” 
but he did not go into further 
detail. The other appears to 
be an insurance scheme, 
whereby use is made of life 
assurance policies to obtain a 
tax-free annual income for an 
individual and at the same time 
to reduce his estate for Capital 
Transfer Tax purposes. 

The Chancellor did not take 
the opportunity to make all his 
anti-avoidance provisions retro- 
spective. Hence the tax avoid- 
ance industry may regard his 
comments and actions as an 
amber light rather than a red 
light, but it would be foolish to 
under-estimate his determina- 
tion to eliminate artificial 
avoidance schemes. 

Cedric Sanford 

New National Sayings Certificate 

AMONG OTHER measures fo 
finance the Public Sector Bor- 
rowing Requirement^ the Gov- 
ernment is to 'issue ar" sew 
National Savings Certificate to 
replace the current 14th issue. 
However, the return to be 
offered on the new issue will be 
lower than that available oirlhe 
current issue. Annualised over 
the' four-year life- of the cer- 
tificates, th'e' return on the new, 
17th, issue, will belfattiv&lent to 
6.8 per cent., as against tEc- TJJ 
per cent available on the current 
issuer . - 

When the ,17th issue is intro- 
duced in June however, the 14th 
issue will be withdrawn — though 
the index-linked retirement issue" 
now. on, offer, . the so-called 
** granny bond," will . be un- 
affected by the change. 

It Is a measure of the attract 
tions that the Treasury expects 
the new issue to have by the 
time that it is introduced, that 
the maximum holding has been 
set at the highest ever, at £2,000 
for each individual. The maxi- 
mum permitted holding of the 
current, 14th, issue is £1.000. 

The return . on National 
Savings Certificates comes by 
way of increments" which- in- 
crease its value during its lifer 
these increments rise steeply. to- 
wards the' end of the four year 
period. The gain is free of .in- 

'tomerfai^and capital gains tax, 
so that - this is. a vehicle of 
savings with big attractions for 
.. highe^retfc iaxpayers. 

Even for a saver paying tax_at 
the baaejate, however, the 10.27 
per cent grossed up return on 
the new issue .of certificates will 
.haye^its attractions, it is con- 
sLderaTJlyHrttter than the 8.5 per 
cent gross now available on the 
Rank's invest- 
ment accounts, for example, or 
the grossed up 8.3 per cent, 
available.-an a building society’s 
ordiuaty .shares, ^ 

■■'-Better- -still, however, is the 
11.5 per cent (grossed up for 
someone paying tax at the basic 
■rftte)- : still available- on the 14th 
issue. The prospect of its with- 
drawal can big expected to 
produce a big.demand during the 
final two ' months of its exis- 
tence— possibly a demand to 
compare with the . really 
dramatic volume attracted by the 
16th issue in the final weeks of 
its existence to March 1977. 

The Chancellor's comments 
on the role of the eertiflcaic&in 
helping to finance the Public 
Sector Borrowing.. Requirement 
underlines the changing -func- 
tion of the ’Department for 
•National Sayings. " Its- Original 
purpose, to provide readily 
accessible savings vehicles for 
relatively unsophisticated con- 

sumers , has been modified in 
recent years as it has proved 
itself capable of raising really 
large sums of money 

These inflows, originally only 
an incidental consequence of. 
the slowness with which the 
rates' of interest on National 
Savings vehicles fell relative to 
those of 'the market as a whole, 
have now become an object in 
themselves. The Department 
for National Savings is, how- 
ever, still confining itself to the 
■pursuit of the individual saver, 
rather than the institutional 
middleman: and last year a 
£50,000 limit was placed on the 
amounts which might be 
deposited in a National Savings 
Bank investment account, with 
a view to deterring just such 
institutional depositors. 

Unlike the deposits made 
with the. National Savings 
Bank/ which are invested in 
gilt-edged stock to produce a 
rate which may change as con- 
ditions; within the market 
change, National Savings Certi- 
ficates are Treasury securities, 
whdse rates and terms are set 
in Whitehall. Including accrued 
interest, there is at present 
£4.14bn. invested in National 
Savings Certificates, as against 
£9.91bn. in National Savings as 
a whole. 

Adrienne Gleeson 

• % 

** . * 



financial Times Wednesday April 12 1978 


Telegrams: Finantiino, London PST. Telex: S $634 1 / 2 , 883897 
Telephone: 01-248 8000 


Wednesday April 12 197S 

Labour’s Chancellor takes 

conservative risk 


seriously intended to be 
Britain’s contribution towards 
ending the international reces- 
sion. it is 'a modest one. At the 
moment it could hardly be more. 
The economic forecasts on 
which it is based are even more 
unreliable than usual, but there 
is no getting round our high 
propensity to import manufac- 
tured goods' or the fact that it 
may prove difficult to hold down 
earnings as output rises. The 
assumptions that “average pay 
increases in the year beginning 
in August, 1978, are about half 
the average for the current pay 
round” and that retail prices 
ri9e by 8 per cent, between the 
.second quarters of this year and 
next are at least questionable. 
But the fact is that the net effect 
of the Budget proposals is said 
to be an additional f per cent 
on a growth rate that would 
otherwise have been 2-2A per 
cent. Such a growth rate in 
itself — special measures of 
assistance apart — is unlikely to 
make very much difference to 
the level af unemployment. 

The monetary aspect of the 
Chancellor’s economic policy 
was stressed almost as much in 
his speech as the purely fiscal 
aspect— rightly, since the re- 
action of the financial markets 
will be important over the next 
few months. The new target rate 
for growth of sterling M3, just 
slightly below the present one 
(which has been just slightly 
exceeded over the year as a 
whole) will probably be gener- 
ally acceptable. 

for the markets would other- 
wise have expected it. 

The fiscal clianges are wel- 
come in general but can be 
criticised in detail. '■ The state- 
men ton stock relief clears up 
an ambiguous situation for all 
companies. The measures that 
will especially appeal to the 
Liberals — help for small firms 
and tax relief for profit-sharing 
schemes — are probably enough 
to ensure that the fatter, though 
seeking to amend particular 
clauses of the Finance Bill, 
maintain the Lib-Lab alliance. 

THIS IS a risky Budget for a 
probable election year; but in 
accordance with , his tempera- 
ment, Mr. Healey has probably 
taken slightly smaller risks than 
are usual in the election cycle; 
Unfortunately the Chancellor 
has also followed another elec- 
tion tradition: things are even 
less than usual what they 
appear to be. It is to quite a 
large extent a Labour Budget 
in Conservative clothing. Before 
one can assess the risks, it is 
necessary to do a little detec- 
tive work on what the Chan- 
cellor has actually done.' 

Tax cuts 


The fact that this new target 
is to be reassessed in the 
autumn and lowered if possible 
will also be welcome: there is 
no hint that a rolling target is 
to be one that simply adjusts 
itself to circumstances. On the 
other hand, the Chancellor has 
landed himself with a financing 
problem in the form of a large 
public sector borrowing require- 
ment Although he may hope to 
undershoot the estimate as 
comfortably as he did in the last 
financial year, the same special 
factors will not be at work and 
the effect of tighter controls on 
public expenditure may begin 
to wear off as time goes by. Mr. 
Healey hopes to borrow more 
from companies and in- 
dividuals, and may be success- 
ful . But with the demand for 
bank credit likely, to increase 
at the same time as the PSBR, 
he may well have monetary 
problems. He acknowledged as 
much by announcing an in- 
crease in Minimum „ Lending 
Rate at once. This was prudent. 

But the failure to make more 
than a token gesture towards 
the effect of inflation on capital 
gains liability is regrettable. 
There will rightly be a fuss 
about the decision to take 
retrospective action against 
certain tax avoidance schemes. 
And the commitment in advance 
of so much of the contingency 
reserve is an unfortunate relaxa- 
tion (even if partly only in 
appearance! of the Treasury’s 
tight grip on public spending. 

As far as the reductions in 
income tax are concerned, there 
is room for criticism on the 
grounds of both quantity and 
quality. The Chancellor could 
have made much more substan- 
tial cuts if he had been willing 
to offset them by raising the 
duties on drink, tobacco and 
petrol in line with the general 
rise in prices. He expressed 
sympathy with this course, but 
felt himself disinclined at this 
particular time to do anything 
which actually raised prices. He 
would have done better to act 
as his sympathy suggested: the 
switch from direct to indirect 
tax has a long way to go and 
no opportunity of furthering it, 
even by a moderate amount, 
should be let slip. As to the 
quality of the income tax reduc- 
tions. the Chancellor has cer- 
tainly taken back out of the net 
many ■ small taxpayers whom 
inflation had driven in. It was 
not, perhaps, to be expected that 
he would do veiy much for the 
top income-earners, though the 
cost would have been relatively 
small: more surprisingly, the 
effect of his proposals is to do 
rather little for the middle 
managers— incentive for them is 
something left over for another 

That there will be another 
time, unless an election inter- 
venes. seems likely. The indus- 
trialised countries are to meet 
in July to seek ways of jointly 
promoting economic recovery. 
The Chancellor presumably 
hopes that Britain will then be 
able to make a further contribu- 
tion of her owu. 

As presented, this is a 
Budget in which tax cuts have 
been made possible by 
restrained expenditure; but 
once inflation and other distor- 
tions are allowed for, it is a 
Budget which is pretty nearly 
neutral in tax terms, and in 
which the net fiscal stimulus — 
if the term has any meaning in 
the context of a rather tight 
monetary policy — is obtained 
through public spending. It is 

only on the longer view which 
the Chancellor himself adopted 
that it is the taxpayer who is 
the main beneficiary. 

The reason for this odd con- 
tradiction is, as usual, fiscal 
dragythe. tendency of revenue 
to rise faster than national 
income as a result of inflation. 
Oq.e of the worst aspects of 
fiscal drag — the process which 
drags low earners into tax — 
was officially abolished by the 
Rooker-Wise amendment to the 
last Finance Act, which en- 
joined the Chancellor to index 
the starting point for income 

However the Chancellor 
jumped the gun and raised the 
threshold far enough to satisfy 
this test last July; the result is 
that comparing 1977-78 with the 
coming year, he had a large 
sum in hand for further " cuts ” 
yesterday. The concessions he 
made — the lower-rate band, the 
rough indexation of the higher 
tax bands (but for one year, not 
two) and even the failure to 

raise specific duties in line with 
inflation— have been financed 
virtually entirely out of this 
margin. Tax revenue will rise 
by just over 13 per cent— 
rather faster than the expected 
growth of national income (or 
for that matter, of the money 

However, this buoyancy is 
not entirely a matter of fiscal 
drag; part is due to the tapering 
off of child tax allowances, 
replaced, under the expenditure 
beading, by child benefit So 
the Chancellor has, after all, 
helped families s ignifican tly. 

However, the bulk .of the 
stimulus to the economy is in 
plain old-rfashioned expenditure, 
concealed in two different ways. 
£550m. is provided from the con- 
tingency reserve, with no change 
in the published expenditure 
totals or the borrowing require- 
ment: and a further £600ra. — 
very largely increased aid to 
Ley I and — appears below the ex- 
penditure line, classified as ex- 
penditure on company securities. 

(This sum, unlike the raid on 
the contingency • reserve, . is 
shown in the borrowing require- 

To sum up, then, there is some 
aid to taxpayers— because' pay- 
ments of child benefit will ex- 
ceed the rise in the real tax 
burden— and . something ap- 
proaching £ibn. of public expen- 
diture increases, announced but 
statistically concealed. The net 
stimulus, compared with no tax. 
changes and no inflation, impro- 
bably a little over £lbn. 

An extra £lfm. of “ d emand ” 
(for no account has yet been: 
taken of the consequences of 
having to' finance this sum) may 
seem a relatively modest 
hostage to an election— a 
matter, of 3 per cent, or so of 
Government revenue; 1 but this 
can only be judged against the 
general economic and financial 
background. ■ Broadly, . the 
Chancellor is running two risks 
in providing any stimulus at all; 
at this stage of the cycle. ..... : 

For what he likes to call the 


Some scope for scepticism 

MR. HEALEY has done his best 
to re-assure the City of his in- 
tention to keep firm control of 
the money supply in the coining 
year and to retain the confidence 
of the gilt-edged market and of 
foreign exchange dealers. In 
this way, he has done as much 
as possible ro ensure that con- 
ditions are as favourable as can 
reasonably be expected to en- 
able the Government to fund its 
borrowing requirement But 
the policy involves substantial 
risks in a period when the back- 
ground factors will be consider- 
ably less helpful than last year. 

The new monetary target of 
8 to 12 per cent growth in the 
sterling component of the 
money stock on the wider defini- 
tion (M3) is a reduction from 
the 9-13 per cent range in force 
for 1977-78 — and which the 
Chancellor admitted yesterday 
would be slightly exceeded. This 
in itself will be of some com- 
Tort to the analysts in the City 
who have become alarmed by 
the high rate of monetary ex- 
pansion recorded in recent 
months, and fear that the new 
base might be set at too 
generous a level. A limit of 12 
per cent, is probably just about 

market-related formula. The 
size and direction of the move 
are themselves not unexpected: 
the money markets have felt 
with Mr. Healey for some time 
that short-term rates were due 
for an upward adjustment and 
have been waiting for the 
Budget before making their 
own decisions on where they 
should settle. • • 

M3 r / 1 

The decision to review the 
targets on a six-month basis 
rather than the three-month 
interval used in the U.S. may 
also help to calm some fears. 
The reasons for adopting a sys- 
tem of rolling targets have been 

A challenge to 


South African Prime Minister, 
seems to have taken Transkei’s 
sudden decision to break 
diplomatic relations with 
Pretoria very much in his 
stride. Transkei, the first of 
South Africa's Bantustans. or 
ethnic homelands, to be granted 
” independence,” is economic- 
ally and politically tied to South 
Africa, on which it is dependent 
for well over half of its annual 
budget. Yet in what was billed 
as a major speech to Parlia- 
ment yesterday, Mr. Vorster 
threatened no retaliatory action 
against the Transkei govern- 
ment, merely emphasising that 
as an independent state, it 
would have to learn to live with 
the decisions it made. 

Element of bluff 

There would seem to be an 
element of bluff in this response, 
for whatever happens in Tran- 
skei must affect the credibility 
of South Africa's apartheid, or 
separate development policy, as 
a whole. The theory of that 
policy is that each. ethnic group 
should have its own independ- 
ence and freedom, and the 
Transkei’s decision to cut rela- 
tions not only with the country 
which created it but with the 
only one which recognises its 
independence shows that all is 
far from well. 

Taking the Transkei's action 
at its face value, there are three 
major areas of disagreement 
with Pretoria. The ostensible 
reason for the break is South 
Africa's decision to transfer a 
piece of land, long claimed by 
Transkei, to Natal province, 
instead of to Transkei itself. 
Apart from the emotional value 
attached to this land, that deci- 
sion shows once again that Pre- 
toria is unwilling to make geo- 
graphical sense of the home- 

But there is also great dis- 
satisfaction in Transkei on the 
issue of citizenship. South 
Africa seemed to promise that 
Transkei citizens— and that is 

held to include Xiiu-a people 
who have never been there — 
would once Transkei was inde- 
pendent, be given a superior 
status in the Republic itself, as 
‘ foreign T blacks are. Instead, 
there has been no change, and 
the bitterness has been com- 
pounded as Xhnsa “ squatters ” 
in the white designated areas 
of the Cape Province have been 
forceably resettled in Trauskt-i. 

These factors underline the 
very circumscribed nature of 
Transkeian independence, and 
highlight what is probably the 
most important single reason 
for the decision to break rela- 
tions with Pretoria: the search 
for international recognition. 
No country in the world, save 
South Africa, has recognised 
the Transkei. Clearly, by 
declaring that his country will 
now stand for majority rule in 
South Africa itself, the Tran- 
skei’s leader. Chief Mantanzima. 
hopes that this will change.. 

The danger of rolling targets 
is seen to be that they could 
simply provide a mechanism 
through which past excesses in 
the growth of the money supply 
would become enshrined as the 
base for the next period of 
adjustment. The danger of this 
ratchet effect would increase, 
the shorter the period of adjust- 

The big surprise in the pack- 
age was the decision to push up 
the Bank’s Minimum Lending 
Rate by 1 per cent to 7i per 
cent, overriding the normal 

By taking the unusual step 
of announcing the change iu 
the Budget speech, the authori- 
ties have perhaps rather 
cleverly averted the. dangers of 
a period of uncertainty in the 
markets which could have lasted 
for several weeks. It will be 
surprising if the change were 
not quickly and fully reflected 
in the level of money market 
rates and then in the cost of 
bank overdrafts. At the same 
time it is not large enough to 
bring any early danger of pres- 
sure.for higher mortgage rates 
in what may be an election year. 

By providing a new .base for 
the gilt-edged market, the move 
could also help to get sales of 
government securities moving 
again, a prospect which the 
Chancellor suggested might be 
enhanced by the possibility of 
falling gilt-edge interest rates 
later in the year- depending on 
the progress with the anti- 
inflation policy. This is the 
crux of the balance which the 
Government will have to strike 
in the coming year. 

The starting point for 
monetary policy is clearly less 
favourable than it was in the 
previous year, when ; the 
monetary targets had . been 
easily met and high levels of 
interest rates provided plenty 
of scope for a continuing boom 
in the gilt-edged market. This 
year, the targets will have been 
exceeded, even if unly slightly, 
and the opportunities for sell- 
ing gilt-edged stock lo the non- 
bank public may be more res- 

Admittedly, there has been 
one major special reason for the 

ACTDAL-/^ ^ 



be placed on national savings 
and on the sale of certificate 
of tax deposit The Government 
will keep the return offered on 
the tax certificates, which were, 
a major source of funds last' 
year, at a relatively attractive 
level in order to draw jn some 
of the substantial liquidity 
winch is building up in the cor? 
porate sector. 

4T - 

>/W77 .1978 

4Q L~I _ J — I — I I ■ ! — I I I I I I.J 


Nevertheless, the Government 
will have to make demands on 
the gilt-edged market similar 
to those required in the pest 
financial year. • 

excessive growth of the sterling 
M3 in recent months. This was 
the heavy inflow of funds from 
abroad totalling perhaps some 
£3bn., much of it reflecting 
hedging against currency risks. 
Whatever policy Is followed in 
relation to the sterling exchange 
rate, it can be assumed that this 
inflow will not be repeated. 

The Chancellor could fairly 
claim, therefore, that in the 
absence of these inflows the rise 
of sterling /M3 by about i per 
cent, in the banking month to 
mid-March^ had brought the 
growth trend back well within 
the desired level after the 
exceptional jump in January. 
There may be some scepticism, 
however, whether it will be easy 
to keep it there. 

The forecast public sector 
borrowing requirement of 
£8Vbn., the same as was 
predicted last year, is rather 
above the top end of the range 
which had been expected in the 
markets. Even allowing for the 
difficulties of forecasting this 
figure, it is improbable that 
this year will produce anything 
like last year’s shortfall of 
nearly £4bn. when allowance is 
made for the extra tax cuts 
made during the course of 

The Chancellor suggested 
that considerable weight in 
meeting this requirement will' 

One major group, the building 
societies, which last year built 
up their gilt-edged holdings 
along with their liquidity, have 
already been unloading some of 
them and will certainly be less 
avid purchasers at least “ 

•' The Chancellor’s confidence 
in the ease of financing the 
PSBR consistently with the new 
monetary guidelines may not 
therefore be fully shared in the . 
City. Finally, room has to be' 
left for some rise of borrowing 
by the private sector. / 
During much of the pafct year, 
the demand for funds jnay have 
been held back by the effect of 
inflows from abroad, which, 
reflecting in part leads and lags 
across the 'exchanges, have 
provided companies with an 
alternative source of finance to 
bank borrowing. This will pre- 
sumably not be repeated. 
Against this, the slowing down 
of inflation and the improvement 
of profits may hold down the 
requirements of the private 
sector during this year. A 
reasonable growth of private 
sector borrowing, within the 
official guidelines repeated by 
the Bank yesterday, could be 
accommodated. But the policy 
could be put out of gear by 
any one of a number of possible 
developments, and the dangers 
of excessive monetary growth 
leading to a credit squeeze will 
not be lost on the banks. 

“real economy,” the risk is on 
the. balance of payments side. 
The. Chancellor made some 
apologies for . the general 
•inaccuracy of all forecasts, as 
tie might well do (thoughts 
predecessor performed no 
better); but the “ central ” fore- 
cast that exports will rise by 54 
per cent, in volume, in line with 
a' rather hopeful projection of 
.voftd: trade, when consumer 
spending at home is expected to 
Tise by 5 per cent., and Spend- 
ing, on cyclical goods like care 
by much more, looks a triumph 
: fltf hope over experience.: 

The . import forecast, which' 
is presented oddly enough not 
as the -Treasury’s own view, but 
as ".near to the middle .of a 
range -of views expressed, re- 
cently by a number of indepen- 
dent forecasters: in again dis- 
tinctly on the optimistic side 
-not only of habitually gloomy 
but: depressingiy accurate fore- 
casts such as those of Wynne 
Godley. but rather better than, 
ohd . would- have epected the 
Treasury, on past form, to offer. 
••..The Treasury produces ;not 
only these main or central fore- 
casts, but a variant — with- 
stronger ‘ trade performance. 
This, has export volume rising 
by 7 per cent.* while the 
economy grows at 4 per cent!,' 
and imports still rise by' only. 8 
.per cent., and looks' very like 
compounding possibly reason- 
able optimism with moonshine. 
As usual, there is a missing 
column in the forecast— 
M variant with weaker trade 

..The risk involved in moving 
into current account deficit 
during the course of next year 
may well not be as great, as the 
Treasury sometimes seems to 
suppose, since North Sea oil 
will contribute a strong, under- 
lying improvement for some 
years yet and a move back into 
surplus could be achieved by 
a : course correction rather! than 
by full-blown crisis treasures; 
but unfortunately the ' trade 
performance is not the only 
doubtful assumption In the 
official forecast. A further .miss- 
ing column might -be beaded 
“ variant with higher consumer 

•- .Thef trouble here is : not so 
muefi detectable optimism as 
thee*- uncertainty. We are still 
venj far from understanding 
the 7 .Behaviour of ‘^consumers; 
The enormous rise in the pro- 
portion of income saved (which 
reached' a peak of 16 per cent 
in the final" months of 1977), 
may be a lasting reaction to the 
enormous losses of real wealth 
which investors have suffered, 
or more transitory. ■ 

The Treasury appears to have 
forecast with ruler: high 
savings persist, and consumer 
spending rises more or less in- 
line with income! It would have 
been more appropriate to use a 
very broad paintbrush. Spend- 
ing could, rise by 2 per cent 
or more above the forecast while 

savings remained at historic 
ally' high levels; - it could also 
drop somewhat below forecast 
if they decide that the increase 
in Teal incomes experienced 
this year Is much too good to 

Thh trouble is that the risk 
of... above-forecast spending 
compounds . with -. the optimistic 
trade assumptions to produce 
quite a significant chance of a 
really sh^rp!. swing of the bal- 
ance of payments, of a kind that 
would have to be corfected very 
quidtiy. : So far as the real 
economy is concerned, the 
Chancellor .would almost cer- 
tainly have preferred to do this 
year what he has done, in the 
past. . and- produce a Budget 
which appeared expansive but 
was in fact mildly restrictive. : 

- -'It i JSt be stressed again that 
the risks .here- are not huge, 
because the stimulus is not huge; 
and indeed pure monetarists — 
who would be most inclined to 
expect a fall in saving and a 
■sharp rise - in consumption 
might say that with a tighter 
■monetary target, there Is no 
net stimulus at alL The Chan- 
cellor is simply pre-empting the 
funds which would otherwise' 
have enabled the private sector 
to expand, and the failure to 
raise taxes in line with spending 
will simply mean raising interest 
rates instead. 

Experience shows, however, 
that this message is too simple, 
by half. Monetary control is 
traditionally achieved by 
engineering a. boll market in 
gilts; successful monetary 
restraint is. in fact associated 
with falling interest rates, in 
what is an inherently, unstable 
Sj -tem in the shortish run. 

i The risk here is not so much 
of the money supply getting out 
of hand, for if things go wrong, 
a good deal of money is likely 
to drain away abroad, but that 
a funding crisis could well 
lead to a minor sterling crisis. 
The- , targets for funding are 
every bit as demanding as they 
look, because of the way extra 
spending has been window- 
dressed; there is little reason 
this year to expect the borrow-, 
ing requirement to fall much 
short 7 of the estimate. Any 
pause in funding will allow an 
overgrowth of. domestic credit 
which could finance an outflow. 
DCS .rather. ; than . the -. money 
supply is again- the key 
indicator. . \ • ' 

- This is. where Mr. Healey has 
taken his final gamble: wage 
moderation, - he hopes, will 
build a bill market for him, 
and if he gets moderation, he 
could wefl be right. However, 
there .'is no rpom for error. 
Mr. ' Healey has talked of 
possibly reducing the money 
growth rate in six months. If 
he Is still there, that is not 
the only thing he may have to 

Anthony Harris 

Michael Blanden 


Clearing up uncertainty 

Calmly taken 

But it wUl take more than a 
stated change of policy by the 
Transkei government for this to 
be' achieved. For however the 
world community may appre- 
ciate the dilemma of the black 
Trahskeians who may charitably 
be said to have- chosen indepen- 
dence to escape the daily indig- 
nities of race discrimination a 
decision to recognise the 
Transkei would in effect be. a 
decision to recognise the apar- 
theid policy of separate develop- 

This may in fact be why Mr. 
Vorster has chosen so far to lake 
the rupture in relations calmly. 
And such is the dependence ef 
the Transkei on South Africa 
that Pretoria knows that ulti- 
mately it can prevent a defiant 
Transkei government from get- 
ting out of control. Neverthe- 
less.- Chief Mantanzima’s action 
wilt not ease Pretoria’s effort to 
persuade an increasingly 
sceptical world that separate 
development is a viable noliey 
for the country as a whole. 

ment on stock appreciation 
relief goes a long way to clear 
up the uncertainty which has 
developed around the stock 
appreciation scheme since it 
was first introduced in 1973-74. 
It arose because relief was 
given, not in the form of a 
waiving of tax, but as a deferral 
which might at any time be 
clawed back if. stock levels fall. 
- Mr. Healey yesterday put a 
sbt-year limit on the extent to 
which stock appreciation relief 
can be regarded as a potential 
liability.. And the relief given 
for the first two years of the 
scheme — 1973-74 and 1974-75 — 
will be written off for ever. 
Thereafter potential liabilities 
will be written off on a rolling 
basis, as they become more than 
six years old. So relief given 
in 1975-76, which has not been 
clawed back in the interim, will 
be written off in 1981-82. 

The stock appreciation scheme 
was originally set up so that 
companies would not have to 
pay taxes on what were really 
only paper gains in their stock 
reflecting the ever-rising cost of 
replacing raw materials and 
other goods. In other words, 
under the conventional account- 
ing system- real profits are con- 
sidered to be overstated by the 
extent of stock appreciation. 
Stock appreciation relief allows 
compan ies to ignore this in 
establishing taxable profits. 

The scheme works in a fairly 
straightforward though rough- 
and-ready way. A company 
takes the increase in its stocks 
between the’ beginning and end 



Stock relief Write- 
position (Clawback) off 


of Its accountaing period. From 
this- figure it has to deduct 
15 per cent of its trading profit, 
after capital allowances. The 
balance is the amount of the 
stock appreciation relief, and is 
simply deducted from the com- 
pany’s taxable profits. 

Since this relief is no more 
than a deferral of tax, the 
possibility of it being clawed- 
back always exists and this 
actually happens if the value of 
a company’s stocks falls in a 
year. The clawback In any year 
is limited to the amount of the 
stock reduction, and obviously 
cannot exceed the aggregate un- 
recovered relief claimed by the 
company In previous periods. 

In practice! of course, stock 
levels will tend to rise because 
companies tend to grow and. 
most of all. because of inflation. 
Consequently, companies have 
been faced with the question of 
whether, and to what extent 
they should show the potential 

liabilities for stock relief 
claimed in their accounts. This 
problem also arises with the 
100 per cent, capital allowances 
which companies can claim on 
their capital investments. 

British accountants originally 
.favoured a system of tax equali- 
sation in which the peaks and 
troughs of annual tax bills were 
smoothed out. This worked 
fairly well while capital allow- 
ances did not vary significantly 
from the depreciation rates fol- 
lowed by companies in their 
own accounts. But with the in- 
troduction of 100 per cent 
allowances for investment in 
plant and machinery and. later, 
stock appreciation relief this so- 
called deferred tax accounting 
quickly led to a build-up of 
large liabilities in comnany 

The problem came to a bead 
in 1975 when the CBI called 
on the Accounting Standards 
Committee to changeover to a 
tax accounting system in which 
companies would only set up 
liabilities for the amounts of 
tax they actually expected to 
pay to the Inland Revenue. It 
was generally reckoned that 
most of the deferred tax liabili- 
ties then standing in company 
balance sheets would never 
become payable. The potential 
amount of this tax, relating to 
stock appreciation alone, has 
been estimated at a total of 
£41 bn. for the four years 1974. 
1975 to 1977-78. 

In a notable turn-around, the 
ASC agreed to change its policy 
on this matter last year. A 

new draft accounting standard, 
known as ED 19, said that com- 
panies need only provide for 
those taxes they expected to 
have to pay in the foreseeable 
future. Since then an increasing 
number of I isled companies 
have been adopting the new 

Many accountants did not 
agree with this, and their fears 
have been enforced by what 
always appeared to be an open- 
ended — though highly imprac- 
tical — possibility that the Chan- 
cellor might one day announce 
that he was calling in all taxes 
temporarily deferred on the 
.Stock appreciation relief scheme. 

Yesterday's announcement 
means that accountants and 
companies now know where they 
stand with stock appreciation. 
The six year period appears to 
have been chosen by the Inland 
Rvenue because it has analogies 
in other aspects of the tax law. 
Obviously it also means that 
opportunities for tax avoidance 
are considerably minimised. 

Mr. Healey made it clear 
yesterday that, ideally, he would 
like to introduce a permanent 
scheme, based on an acceptable 
system of inflation accounting. 
In- the likely event of this not 
emerging before next year's 
budget, he is to continue the 
present system indefinitely, and 
legislate then for the promised 
six year write-offs. Maybe those 
foreign bankers who have been 
very wary of deferred tax 
liabilities in their lending poli- 
cies will now also feel relieved. 



jjow much do you know about your competitors, 
your customers or your, suppliers? 

EXTEL can keep you up-date about their 
latest, results, balance sheets, acquisitions, board 
changes, dividends and a dozen other items of news. 

P To Extd Statistical Services Ltd, 1 ■ - 
I 37 (45 Raid Street, London, EC2A 4PB , , 
! Phone 01-253 3400 


A se 






r, 1 '. ' . ” 

Michael Lafferty] 




Financial Times;. Wednesday April 12 1978 

the budget 



doubts remain 

E CHANCELLOR’S income The Chancellor is now able to 
cuts are welcome, but the give encouragement _fOr that 
iging question, must remain extra work by adding also the 

- 2 ^ e f ke has. got them in the pleasurable sensation, that the 

. • . ;Le has increased tiie' single man out of 9p of what he 
v s , ns allowance by £40 to £985, formerly regarded as his just 
..'.'L-*- - ' duie married man’s allow: deserts. 

; e . y ^*535. He has in ^ea Which most be re- 


..cent. - r_ poverty trap, the lower rate 

- ’hirdly he has pushed 1 up the out considerable hope. An 
• • Ms at which each of the extra £1 of eaniings could and 

her rates start Each of these often did result in a reduction 
'.“ er rates now starts £1,000 of spendable income: TRie tax 
. - •her except for two, 60 per cost of 34p, combined wffli a loss 
- t. and 75 per cent., which of family income supplement, 
- \ ye up £1,500, and the top higher •" a tio md insurance and 
. °f 83 per cent, which is loss of rent and rate rebjffts 
.. ■* reached at a figure £2,000 could easHy amount to a total 
•‘■her, than before. disadvantage of more than £1 

: /; i;.'he combination of these or, to put it another way, in a 
relaxations provides a marginal-. “ tax 7 rate of over 


■ ier strange picture:— 

100 per cent. To the extent 
that the true tax part of the 
package is now likely- to be 25 
per cent " rather " than '34 per 
cent, the aggregate damage is 

Reduced, but not eliminated; 
a much more radical re-struc- 
turing of tax and social security 
would be needed for that The 
£23.000 & above £688 negative j income tax,". -or tax 

: .his is where the doubt credit schame, has Oeep under 
- -es. Should a greater amount consideration for nearly ten 
. help have been given to years. . When examined by a 
die managers — those in the Select Committee in 1972, it 
around £10,000-£ 12.000 was seen as more or less totally 

.T income, perhaps £8,000- unacceptable to aU branches of 





. £7.000 




- £9,000 

: £10.000 


■ £11.500 





0 20“. 40: 60. so: TOO'. 

GROSS I — T— I 1 T - 


20. 40: 60' 80. 

the individual taxpayer. The 
table illustratus tin* aspect. It 
is based on the assumption that 
during each of the Iasi three 
years of pay policy. the taxpayer 
concerned has achieved no more. 
and no less than the maximum 
permitted increases, m earnings, 
so that these nmi stand at the 
levels of grojis income indicated. 
The additions to his spending 
power in the form of child bene- 
fits (.formerly family allow- 
ances) for two small children 
have been added in. and nat- 
ional insurance arid tax have 
been deducted. This produces 
the net spendable income figure 
which the taxpayer is left 
anticipating each year when the 
Chancellor sits down. H is then 
possible .to index the four anti- 
cipated amounts, through front 
April 1975 to this year, using 
the Retail Price Index ficures. 

At the- higher levels, after 
substantial and repeated falls 
for the first two years, the 
ficures show a marginal increase 
this year. A cynic might say 
that that wa, im more than 
might be expected m the run up 
to a general election. He might 
also say that the- sire of that 
upturn, at approximately 1 per 
cent, does not seem entirely to 
square with the rather more 
self-eongralulaioi-y Lemis used 
by the Chancell nr. 

Perhaps the curve has 
bottomed out. Perhaps our real 

“-■■... 000 of taxable income? It the Civil Servke, who would Revenue are known to have been at 1,500 and reached the full ]j V j n ^standard-. may l, t - some 
t that level that the benefits have had to «H>pattte. pver its very cool. The extra labour in rate at 12,000. *mall way towards recovering 

•'..-...ear to have been least gener- introduction and 'operation. Atti- tax offices is considerable, and Fur an individual with net what they had fallen Trom April 
Jy shovelled out tudes have recently seemed to it is no secret that staff work dividends of £1,980. equivalent 1975 to April 1977. Perhaps 

-i ' t the low income levels, the be rather less adamantly loads in those offices, and the to £3,000 grass, the new pro- the most suroruing feature of 

oduclion of a reduced rate opposed: But there is no way in cooperation of the Inland posals will reduce the tax the chart is its consistency over 

_ :; -.d is a dear advantage. The which a comprehensive tax Revenue Staff Federation, can- liability from £200 to £167. Not a very wide income range. At 

;/*5^ ncellor mentioned that it credit system cbuH be brought not safely be relied on to with- perhaps a significant reduction all income level* over £6.000, 
form the marginal, and in overnight. The Revenue Say stand further enormous pres- when seen against a year's infla- the aggregate tall in the first 

before only, rate of tax for they would .heed five*. jor six sures. 

tion. Net income from dividends two years was neither more nor 

: e 4m. taxpayers. The actual years to design and test the com- The Chancellor has increased last year of £1.780 would have less than 22 per cent., and the 
-c of the previous tax thres- puter system needed.. If it is the threshholds for investment needed to increase by nearer rise this year u.i* j per cent. 
•: V l was widely regarded as to be our eventual .objective, income surcharge. The .10 per £300 than £30 in order to give At the lowest income levels, 

ng a severely disincentive should not some planned: pro- cent, rate applies over a £550 their owner The same spending real income lic.x increased 

‘;t. An eartra effort, rewarded grass towards It be hi -hand? . band of gross Income, from pqwer. steadily over 1 1 :>• whole period. 

• i-Vi an extra £1 of earnings, re- This, brings iis to inotiier £1,700 to £2,250. The 15 per Real spending power in the No one should u’.il at that. 

...~“ed in the Inland Revenue interesting aspect of: the Jower cent rate operates thereafter, taxpayers' pocket is still what n , ... . 

' -'- jfiting to the extent, of 34p. rate band now CTeattyL_ The Previously the surcharge started budgeting is really about for - ”3Vlu >«2inmao 


the Lib-Lab Pact 

FIRST political comment gone almost as far ikhe _ 

' f: the Budget is that the could: Iq increasing^ public 
. :■ :?rnment . most now be safe pendltnxe without h&viz$ to 
-J the autumn, And : the new revenue. to replace the 
••--nd is that it appears to be cut* - The bringing forwwg 
g its utmost to maintain part of the next , rise in' 

y secret of this- international keeping down the rale of in- before ? But that choice is not 
background in his presentation, Ration — an 'approach, inriden- going to happen yet. and for 
and indeed the Budget is being tally, not vastl ydifferent from the moment Labour must reckon 
deliberately put forward as .a tha t likely to be pursued by the that it is back in with a chance. 
British contribution designed to Conservatives, and therefore 

^ .ill encourage the stronger coun- harder for them to attack. Mstkolift Rutherford 

; -jiption of staying in power Benefits to . November, ^ .femtries to do, more. There might The message makes sense and 

• 1 1979: ■ - • . /-. vettaiupfa- will .'-please footnvtUl be something, to be gained been-' heard ’in other 

■. .iough hax been given ta fhe : ' c ' all0 “ i ' ^^-^iberals alikew-rB^irom posing as a’ world stages- countries: Mr. Healey could 

rals to prevent any 'hsajor be has done so at r a puj£t" man and, of course, rf Mr. Lai- p0 mt out. for example,' that in 
•avals on the. flop? of the ““aely the raiding, Gtthe.-^pn- off,, the prize is west Germany where the rate 

... se of Commons, and indeed ti ngency 'reserve. Only 

J ".renewal of the Ub-Lab Pact 15 now left nheamarke— - r ~- . .. ... th - 

' * ~n it expires la July is now was not th® original urention that, however, the talks witn tne settlements have been 

2what less of a remote possi- w ^en . "the figure „ .wa^T set at gade unions wtU be crucial Mr- running at five pe r rent . and 
y Mr. David Steel and ^O™- to the ' Ewenditure He^ey left a certain amount of are considered high. The impli- 
- - 'John Parchje are entitled to' White Paper. , al l 0U A ^ cations for British competi-tive- 

n tliaf i, 9 Rnatrot with 'Ph* flthpiV— 41111, 


Horses may 
safely graze , - . 

Red Rum may have been given 
the freedom of the sands at 
Suuthport but his successor, 
Lucius, faces a tougher time up 
in Fife. There Shell and Esso 
plan a iiquefied-gas separation 
plant just next to the grassland 
used by this year's Grand 
National whiner, 15 other horses 
and a donkey. 

Braefdot Bay is one of the 
last unspoilt stretches of Fife 
nn the Firth of Forth (try say- 
ing that quickly). But between 
it and the 12th century abbey- 
on nearby Inchcolm Island lies 
Mortimer's Beep. This makes 
the site suitable for the tankers 
which would take ethylene 
extracted from North Sea 
natural gas to Europe and pro- 
pane and butane to the tT.S. 

pulled out with what he told 
me yesterday was a loss of 
£3,000. The cummiilce says 
•uMWtfhaliKf th.»* r try again 
with a lottery, after a rethink. 

Star stands fur the fuur run- 
down and “ deprived ” districts 
of soutb-east Cardiff, which the 
planned community centre 
would serve: Splott, Tremorfa, 
Adamsdown and Roath. To help 
push the scheme along, 
Callaghan has held several 
meetings in his constituency. 

The honorary solicitor to the 
community project is Michael 
Boyce, also the solicitor to the 
South Glamorgan County Coun- 
cil. He told me yesterday that 
unemployment is the key issue 
for the four Star districts. The 
Secretary of State for Walt it, 
John Morris, will chair a meet- 
Do you detect a slight thaw?”' ing in Cardiff to-day to see what 

■ can be done. He may find it 

hard to stir much enthusiasm 

which would have been poig- in places tike Splott — the lot- 
Lucius's owner. Mrs. Fiona nant in to-day’s circumstances, tery flop is largely attributed to 
Whitaker, says *T am not a David Roberts of Hutchinson the dispirited local mood after 
banner-carrying Vanessa Red- Benham, the sponsored-book 016 Eaj »t Moots shock, 
arave. but we do not want the division of Hutchinson, sug- 

terminal here.” .And Dick Mehta, gested to me that the proposed — — 

the lawyer who co-chairs the book was of “ general interest " 

Aberdour and Dalgety Bay and sa id there had been no sug- RuilriArc hpln 
Group' against the gestion of ringing up to stop D U ,llJ c r ® **Cip 

Joint Action uroup against me gestion of ringing up to stop 
terminal, emphasises the author David Wain wright at his A deal between the villagers 
dangers of siting the terminal typewriter. Roberts added that of Grasmere and a Newcastle 
so close to the 7,000 inhabitants yj e typescript was due in a building company has saved the 
oF the two small ■ present vil- m0 nth. Wordsworthian beauty spot 

,,Rin S me again in three or a development which 

"» n S!. X four months.” he said encourag- would have transformed its 
cordon recommended by tne . I n character. The huildprs William 

6nmilr _ Into thP T974 Flii- in S J y- 0n t 11 ® question of titie, character. The builders. William 

enquiry into tne D”** _ T> n vartG ineietnrf hoM Leech Ltd., have sieneri a ran. 

2 J ...LjlJ Jm* d Roberts insisted that none had Leech Ltd., have signed a con- 

bee" chosen. Fred Beszley. tract giving .the Grasmere 
people. Sptilers' company secretary. Society a disused hotel and 

The Group has just brought stressed that milling has been surrounding land for I70.0DU. 
over the American professor, ^ backbone of the company's Originally it had been planned 
James Fay, who claimed the to build holiday homes on the 

Esso/Shell scheme would have about the hook site - but after a worldwide caife- 

iTn-^nl m 1116 U,b - that there hTheenZ firm S to buy the hotel and 

satetj „rounai>. sion Qn whether l0 publish u restore it. Leech dropped its 

A Shell spokesman says the or QoL which might reassure Price from £80,000 and arc 
companies scoured the coast for shareholders, who have watched Siving Grasmere £2,000 towards 
an alternative site and sug- tb e company Jose £28m. on °ext stage, 
ested other Americans could be bread over the past six years 

fr> nAiiAtat* n 1 *ii*VIC « i . m 

Mrs. Isabel Wilson, chairman 

[JV" d F !Sve™mSft mURt w 1 ? m,er how much of of the" appeal fund in’ Grasmere. 

**252 Sa'.ifJW by "»• «* -W. « delighted and 

approval given for the project 
two weeks ago. any objectors 
will have to move fast. 

Spi tiers the Millers. 

grateful that the contract has 
been signed. Money has come 
from all parts of the world. Wc 
look forward to bringing back 
new life to the focal point of the 

equipment. Perhaps they will 
design some double ear plugs 
for the horses, too. 

Airs. Whitaker has apparently 

been offered double glazing by Gel rtf ITT CrilSnCr 

not* of the gas refrigeration "^be'r7To? SZ 

community project in Jim — 

Callaghan's own constituency 

met to pick up the pieces after hard curplv 

a fund-raising setback. The 100 nara » Surely 
Prime Minister is president of As we know, the normally ira- 
the' Star Project, which has perturbable tenor of life at 

been given extra urgency as a Claridge’s Hotel has been 

Next year will be the 150th morale-booster following, the slightly upset this week. But 

anniversary of the founding of decision to close the local East there, must be something wrong 

Sptilers: -as part of their jubilee Moors works. with a quotation from the man- 

the company has followed the A lottery seemed the most as received from the 

boardroom fashion of to-day and promising way to raise money Association: * No one nas 
commissioned a company for the project's running costs: »*ecked out The hovel is full, 
history. “The Master Bakers” but after two decidedly unsue-' 

had been one potential title- I cessful draws the promoter, 0bS6YV&Y 

Milling around 

was told by a trade source — Richard Murray of Newport, has 

.......... w._ . — -- cvtuuui iuj onusn compeu-nve- 

gr eater — target in his speech. The rate of ness oj a reversion to double 

® IM An Ian iU)« J 1 1 IT 0 1 If t n aa 1 . .. _ 

ing that was under ccn- especially, on/the achievement next even . here or not, however, the point 
ration and help for small of a satisfactory Phase IV in cre^es^at abouthalf is that the Government is not 

: -nesses— sometimes down to pay policy./The real action in out - yet ' By pi,ching fri . much 

i-.., » ik*pai iho Tiot+ fouf mfinHit -u,iil h#» not assumes In its forecast uiat tms on international recovery and 


last Liberal ,detatiJ-*hey the next fflftr months will be not 
have the cuts in direct on the fiber of 

the House of the rate if “ average pay yj e achievement of a reasonable 

tion. • Commons but in a series of Increases in the year begmmng phase IV, Mr. Healey has at 

or man -amoviTimonic- ^ternational summit meetings August 1978 are about half the i eaS { gained time. .It will not 

® r i in “? y SuTnlS and:the negotiations with trade average for the cuirent pay *e possi We to deliver pudgment 

ie Finance Biuanc^inpar- round” I* does not speafy until well into the summer. 

Callaghan is due to see wbe^er it is talldng about wages ^ Thalcher be ^ 
lax whS The Chancellor Schmidt - of West or earmnsg and clearly there ^ ^ chancellor has under- 

" ^ Girmafty shor^. He is also must- be room for, some negotia- gone something of a death-bed 

ort new t*nt intro. to for the tion, but the figure that is going conversion to the cause of lower 

nst tne « per cent, in NATO summit- where the world to stick in the popular memory tax hut death-bed conversions 

and perhaps further io 

economic situation will un- « S.per cent 'That will be a sometimes work and Mr. 

doubtediy be . discussed Mr. foldable task. Healey’s has all the marks of 

H f Fukuda, the Japanese Prime . The Government has now set conviction. In the end, it may 

the G Minister, will be travelling in itself ti»e task of preaching in- be a question of the length, of 

T ^ and, the V-S- In July comes policy by exhortation. It the collective memory. Will it 

rals voting against tne there will be anotheMheeting of has to demonstrate, as Mr. be the thirteenth Budget that is 

•rnraent on a confidence ;t ], e . European Council in Healey said in the Budget, that recalled at the election or the 

» have all nut disappeared. Bremen be followed by the moderation ip wage settlements four years of no growth, the 

r. Healey has also given seven nation Economic Summit can be rewarded by higher real inflation peak and the rise in 

? thing to the Left He has in Borin. ;Mr. Healey made no incomes because of the effect «t unemployment that went 




Basic rate 


Single • - 

Age— alhrwancc single ; 
Age— allowance married. 

Higher rates 

Investment income surdvunge 


, wines, spirit* 

national insurance 

oners' contributions 
yees* contofimtloiis 

Reduced to 30 p; band widen ded to £8,000 
(or introduction of lower rate band) 

Raised to £1,100 

Bands widened; maximum rate 70. per cent. 
Threshold raised by £500; rate’ 
reduced to 10 per cent. 

Cigarettes up 5p per packet. 

Beer up 2p per pint 

Single 10 per cent- rate (instead of 8 apd 12}) 
' No change 

-Up 1} per cent. 

Six specific relief* 


Rate unchanged; band widened to £7,000 
Lower rate of 25p on first £750 
Raised to £985 

Bands widened; maximum rate 83 per cent. 
Threshold raised by £200 (£500 for 65 
and over) 15 per cent, rate remains 

Increase on cigarettes with high tar 

content only 






Almost exactly agreed 



for allowances 

\*LY enough, the hotel iri- 
P'gy’s reaction to being 
>.<?' ed out for specific attention 
^jhe Chancellor , was not so 
pleasure at what he - had 
Iky. but delight that it had 
w recognised as a separate 



/w hotel projects, and ex- 
' ons, are . to . . quamy . fbr 
/al allowances of 20 per 
/. and an annual writing 
' J\ allowance of 4 per cent 
X j straight line basis. This is a 
/ x change in Governmental 

attitudes and one for which the 
hotel and catering business has 
been pressing for years. Basic- 
ally, it means that tourism in 
Britain’, is now a- recognised 
industry with its own problems. 
For . some time hoteliers have 
been pointing ..out. that ..their 
properties are now largely pur- 
pose. built and of little use for 
anything else. Hotels, they claim, 
are the industrial machinery of 
tourism and should be treated 
as such for tax purposes. . 

. The Chancellor has gone a 
long way '.towards doing; just 

that . At the moment hoteliers 
are given capital allowances on 
furniture and fittings. Now they 
can add 20 per cent of the 
building costs to that total. 

Broadly, the sums change as 
follows: The total capital cost 
of si. 160-room hotel to-day 
might be assumed at £Sm. The 
first year tax allowance on such 
a project at the moment would 
be around £1.5m. (on fixed plant 
and furniture) and thus the net 
first* year tax saving is some- 
thing around £800,000. There 
Would be no tax savings in sub* 

sequent years. Under the new 
rules the, Initial allowance. would 
be just over £l£m. and the 
annual allowance in the order 
of £60.000 a year. The first-year 
tax saving would thus exceed 
£lm. Taking a 20-year period, 
each room would cost a little 
more than £9,000 after tax, com- 
pared with around £11,000 at.the 
moment on a room with a total 
capital cost of £19.000, includ- 
ing, furniture and fittings. 

Arthur Sandies 

One of the great attractions of siting or 
expandin g your business inlndustrial 
Cumbria is that you qualify for a 100% first- 
year tax allowance on new machinery and plant. 

If you add to this the benefits of 
maximum Government grants, land and 
ready-built factories at realistic renis 
( with, in Government factories,a possible 
5 year rent-free period.) and removal grants 
t up to 80%) s then you’re more than 
hidf-way to visiting us in Carlisle. - _ . 

Communications to and from Industrial 
Cumbria are excellent. For example, travelling 

time by rail from London to Carlisle is less 
than four houxs.Breakfast in London, lunch 
with us. 

Come and sec fijr yoursdf. 

Ask your secretary to write to the 
address below or ring Cumbria County 
Council on 0228 23456 for the latest infor- 
mation on whaj Cizzribria can offer your 
Company in terms of land, buildings, rent, 
rates, grants, social and leisure, amenities, 
outdoor life, and all the other things that add 
.up to civilised living. 

Contact The Industrial Promotion. Section, 

Cumbria County Council, 15 Portland Square, Carlisle CA1 1QQ. ; 



The tyranny 



WITH ALL the enthusiasm of a aiming at economic growth suffi 
child offered a bowl of cold por- cient to bring down unemploy- 
ridge, West Germany has accep- ment? Of course politically they 
ted the new economic growth dare not say it— even though 
target for the European com- German experience alone over 
munity. At the European Coun- the last few years makM it 
cil meeting in Copenhagen, reasonable, at least to question 
Chancellor Helmut Schmidt sub- a direct correlation between 
scribed to the aim of 4.5 per ^onomcgrowth and a fall in 
cent, growth in the 12 months jobiesstotal ■ 

from July which bis economic Jg" SESgV' 1 * ***** 
and finance Ministers had _ pre- whether the proposed community 
\nously failed to support in . of 44^5 per eenL growth 


would do the trick. And what 

It would be easy to imagine does (j, a t arm mean in terms of 
that this signifies a change^ ot t ^ e n j ne optional economies? Is 
heart in Bonn. Surely the Ger- g^ain goEng to meet the tar- 
mans. who previously rejected 0 *t<» j s italv— without driving its 
-~ T “ "locomotive" s — 


the onerous role of "locomotive" alre ad y high inflation into the 
for the world economy, have now s jjy? ^ a good member of the 
accepted the bright, new “con- convoy. West Germany would 

vny” theory — under which joint have to .be forging ahead at_an -a _ . _ 

action is to haul the- industrial, inconceivable "rate of knots'fHSjiar Press’s usual standaxds. 
States ■ out of economic despond. t0 h e jp the trawlers and dredgers. 

And that must imply a bis new 

German economic boost, partlcu- *** Jben did Herr Schmidt 
larlv .since (he country seems to »° ^; Ce 

he falling hehind its own target tar S et ]° ?*? 

nr 3.5 Per cent, growth this ve ar . response wffudd be that it w not 

That all anpears to be logical — at merely a 

hut it is all wrong just the same, projection. 

Another reason couid be that 
m Herr Schmidt’s friend, Mr. James 

VllcniPimiC Callaghan was particularly keen 

on the idea. And why cause a 
The fart is the Germans are political upset now? After all, 
hernmins almost as susuicious of by the time it becomes clear 
targets as they are of locomo- to “experts ’ that the 4-5 per 
fives and convoys They have cent, is not being achieved, most 
onod reason, of course. The people will have forgotten about 
Bonn Government’s track record it The deadline can then be 
on growth prognoses is hardly pushed back another six months, 
outstanding — but then no one 
else inside nr outside the _ . 

country seems to be doing much ,SlI IT! fillip 

better. Bonn would dearlv like VJUHIUIIW 
to drop the tiresome need to say g 0 we sweep on to two more 
in advance what it thinks the s umuiit conferences in July — one 
German growth rate would be. 0 f f^j e Communltv countries in 
hut It is leeatly bound to per- Bremen, the other of the seven 
form the exercise and the figures, ma j or non-Comrounist indus- 
at least temporarily, appear to tr jalised nations in Bonn. Both 
Give a sense of conviction in a could in theory be pplendid 
far-from certain economic fQj-unis for setting targets and 

w . or w- £° JS* nove ™ mw, lJ® demonstrating the convoy 
stuck with 3.5 ner rent which j|, eorv . a j hishest level. The 
means that if the figure seems British espeeiallv have been 
likely fo have fo be reduced to ar71 - og action to stimulate 
say. 3 per cent- there W, J[ growth, stabilise currencies, en- 

These cries will be just as strone — ■ . - 

quite irrespective of whether the nn 

prospect of slower growth should "HM. ^wb^cmdd^ibfv be 

cause the Government to try to wonder. 
start tinkering with demand against them. All 
again, or. indeed of whether such as it were Is to fill 
tinkerine will’ bring any measur- Wes * German v support the 
able advantage to other coun- protectionism bit m particular— 
tj-les . just as it did at la«t vear s sum- 

It ‘ is naturally hard for a mit in London. Since then it 
Government publicly to admit notes with regret that protec- 
that its figures were wrong (how- tionist pressure has increased od 
ever understandable the error) its own ^European doorstep. But 
and simultaneously to say that it one thing the Germans are 
is taking no action because noth- already solera nlv vowing to them- 
ing it can do can make much dif- selves. Whatever else the final 
ference. This problem is com- document of the Bonn conference 
pounded at European community may include, it will not be a 
level Which European leaders reference to soecific national 
are ready to say that they are not economic growth targets: 

.. . - Financial .Times Wednesday April 12 197S 

The attractions of the wild garden 

EVERYBODY likes the idea of employer and exposed their bed- not, then, cut until early Jniv. believed ' that maW ■ ii-Jr j • u ' ... ■•.V . .. sara™. It sounds respect- dmg plmts to a. JanuMy nights It Is n messure.ol our own .SJ.. SerSls Sid tarifhJSf: JS? SiS? 5 ?* Sff’LtLSfSSn *°! lH 5? 

able without being arduous. It frost because he detested them, cem with' order 
is slightly romantic. It would *>om there, tie ended up as ‘beddibg that we 
also save money, one obvious keeper of native plants in first, that this 

century. Yet truly wild gardens the Paris 
are few and far between, 
fact was brought home 
when writing a foreward for the debate is 
classic text On 
now handsomely 
William Robinson 

Garden first appeared _ 

was reprinted frequently -over assume. Next, aged thirty, be 
the next thir ty years and was re* travelled is the Mediterranean 
vised, I have come to realise, ‘ in ^d yisited North America. His 
very reve aling ways. Since 1920 book, published when be was 32, 
or so, it has just become a name, grew out of this. In its first 
I hope that the revival, by the edition, the Wild Garden re- 
Scolar Press, may catch outlook of a keeper 



problems. The iris's 
course, were shortened 

IT**, Accessible 

— — , — — - . Foxgloves, angelica, t ali yar- tsrough my small ^ . £■ 

gardeners’ interests once again, jf .*SL **** 1 freliwe. too shy about tilting it up on.twoo! its. wheels, row. golden rod and the bag sea. acMsSfi?’ S f uUy v* v '- ' 

is back on sale as from this hmlt on his walks in mountain oow - ‘ - Se clumps of leaves 1 on rather than to plant a# 

week, complete with the old scenery whose Alpine meadows Robinson’s plea was quite which the eKr * 'Show 

wpgfl cuts, reprodu^d -tethe unpressed tarn. . He was not simple: “All are agreed,” he depend -for the next year.Tiie whSIveryoTontS-Ibig £^TiJrf*!5 1 
- « - - no-finons co^d vntte,“tiiata. mistake .has- ptoS have to be .m^pd ^^d & or^rt’\wo‘u!f 

2S, ^ ^sationa ^_taak« : daims.eveD ; th«e gardens .on Ume«dls^; r- 

garden -himself. _ 

What can 
More. £ think, 
consider _ 

Robinson was an Irishman, a would realise. Robinson returns meat,” still has not worked dividing them! 
pugnacious man who is alleged, often to the possibilities of early through to the keepers of public 
in 1861, to have flung open the summer-flowering perennials parks, propped up on the 
greenhouses of his clerical massed in long grass which is of domestic rate-payers. Robinson 

Midnight Court still improving 

LITTLE HAS happened over the Atlantic Bridge, Beparoejojo and gelding, only once raced over 
past few weeks to change my view Major Thompson — withdrew from the minor obstacles, should have 

that Midnight Court can beat the main supporting event, the too much speed . for Bourbon 

Fort Devon for speed at the end Daily Express Triumph Hurdle, Street 

of today’s postponed Piper at the final declarations stage. __ 

Champagne Chelte nh am Gold g u t it promises to be worth 
Cup. and give Fred Winter "that seeing for Rodman will be try- 
long-overdue first training .sue- ,- n g t0 retrieve a slightly tar- 
cess in the race. nished reputation against a 

Midnight Court proved with his challenge from Ireland by 
victory in Chepstow’s Aynsley Bourbon Street and Corrib 
China Cup that he is still im- Chieftain, who has continued to 

show tremendous promise in 
schooling with stablemate. Pro- 
minent King. 

If inexperience does not prove 
his downfall this Appiani Q 

2.00 — Merry Meadow 
2.30 — Rough and Tumble 
3.05— Corrib Chieftain 1 «» 

3 . 40 — Midnight Court** 

4.10 — Broom ley* 

4.40— VIdo 

5 JO— Beau Cbasseanr 



345— Rifle Brigade 
5.15 — Neparree 


Ports traffic down 1% 


proving, and he,'rather than the 
veteran Fort Devon, will bave 
benefited from the postpone- 

With Fort Devon, Brown Lad 
and Royal Frolic vying for the 

lead, 1 hope to see Midnight TOTAL TRAFFIC through total fuel traffic in and out was 

Court brought with a late dial- British ports fell by 1 per cent. 2 per cent down on 1976. 

lenge on the climb to the finish lagt year with 1976. Foodstuffs and manufactured 

to peg back the popular ex- according to the latest statistics goods traffic rose 5 per cent, 

American chaser. published by the National Ports while basic materials traffic fell 

Ireland's principal hope, CounciL 7 per cent compared to 1976. 

Brown. Lad. would be a threat 

tn all on heaw <round. but with j Tbe . c ° un 2 I ' said , this , sU | ht • Brittany Ferries will deride 
S Sd^a hard SS dro * i n ^ within the next few weeks 

just behind him. I give him no -° .* further substantialjiecline whether to turn its new twiee- 

lenind mm. i give mm no ^ ^pg^ed oil as a result of the weekly PlvmouthrSantander car 
SSSrt ^Schekiris 0 ^ hS*?SS “e development of North Sea Oil ferry service, which begins on 
under-rated hero of 1976. Royal Fuel imports fell 19 per cent Monday, and its other new 
Frolic, to have his measure. and, although this was partly seasonal service from Cork to 

Nine runners — including offset by an increase- in exports. Rose off. into year-round services. 

TV/ Radio 

6.45 The Wednesday Film: 

“Track of Thunder” 

S.I0 Miss Scotland 1978 
9.00 News 

BBC 1 

6.40-7.55 a.m. Open University. 
12.05 p.m. For Schools. Colleges. 
12.45 News. 1.00 Pebble Mill 145 
Bagpus. 3.00 Racing from Chei 

Northern Ireland — 3 .53-3.55 pun. 
Northern Ireland News.. 54^6.20 
Scene Around Six. 945-10.05 

.... F not light on Northern Ireland 

935 The Budget Sir Geoffrey affairs. 11-35 News and Weather 
Howe for the Opposition for Northern Ireland. 

9-35 The Hong Kong Beat England— 5 .55-6.20 pJ*u Look 

1045 Sportsmght . East (Norwich): Look North 

10.55 To-night . (Leeds, Manchester. Newcastle): 

1135 Weather/Regional News Midlands Todav (BinnlnarhaTn): 

lOJO-n, Budget: The Shadow StKP 

Chancellor. Sir Geoffrey 
Howe MP, for the Opposi- 

1040 The Midweek Match 
1140 World Snooker • 

12.10 aun. Night Gallery 

1325 Close: Christopher Cazen- 4« ua Tro. Loo-tis y Dyad. 

ovc reads po ems bv Thom M- re west — AJ HTV General Service 
C. imrf excopfc UD-UO. p.m. Report 

All IBA Regions as London SCOTTISH 

Betty Boon. S^B Crossroads, am Report 
West. (JS Report Wales. fcJO Havoc. 
llJtt Han and Woman. 12US aun. The 

HTV Cymru/Wslcs— As UTV General 
Service except: UKL25 p-tn. Penavdan 

M&SZf&SZ 1 !^.2riJ2Sa5>- 

tenham. 323 Regional News for the following times: - t . day (Southampton): 'Spotlight 

England (except London). 345 Wales — 5.10-525 p-m. Bilidow- south West (Plymouth). 

Play School. 420 Bailey’s fomets. car. 5.55420 Wales To-day. 6.4o 

a-m. The Funky Phantom. UJt 

4.40 The Canal Children: 

John Craven's newsround. 
Think of a Number. 

540 News 

525 Nationwide (London and 
South-East only) 

620 Nationwide 

5.05 Heddiw. 7.10 .\sk the Family. 
5.10 7.40-8.10 In Our Nature. 1135 
News and Weather for Wales. 

Scotland — 5.55-620 pjn. Report- 
ing Scotland. 10.05-1025 Sport- 
scene. 1135 News and Weather 
for Scotland. 

BBC 2 



1 Employees' leader got one 

- 'accepted by people bargaining 

7 & 28 Gamble with little bope 
to deceive c.6) 

9 -Vagrant male getting gin 
outside (5> 

10 Usual tax applied to a railway 

11 Hybrid white rose — what 
else? (9) 

12 Rope going to pole for doth 
( 6 ) 

13 A separate element contained 
in particles (7) 

15 Article got in return for a 
cloak (4) 

IS Insect used to be quiet at the 
end (4) 

20 Eat nuts to create disease (7) 

23 Separate a bit (5) 

24 One who goes to press for inn 
with unusual relish (9) 

26 Odd fellow could be a crank 

27 Dwell to the north and 

• become brisk (5) 

28 See 7 Across 

29 Is thick string in a ball? 
That’s the difference ! (11) 

5 Examine creature with . soft 
centre (7) 

6 Unusual one left in night for 
source of illumination (4, 5) 

7 Clever supporter in capital -of 
Yugoslavia (6) . 

8 Attempting' to be tiresome (6) 

14 Criminal leader hurried to be 

punished (9) 

16 Have nuns to be upset when 
not barefaced? (S) 

17 Alienate Oriental with 
peculiar following (8) 

19 Father upset syrup in old 
writing material (7) 

20 Plant giving unhealthy fumes 

21 Vocation involving attention 
to Her Majesty (B) 

22 Plaster on your head is 
incongruous (9) 

25 I had been in front but 
slackened (5) 

Solution to Puzzle No. 3,639 


1 Subject of a country or race 
that is grand (S) 

2 Carbon compound bit with 
shot outside (S) 

3 Come to a point using a 
source of light (5) 

4 Attribute to a writer (7) 

640-725 a m. Open University 
1020 Gharbar 

1043 Parosi 

11.00 Play School (as BBC-1, 32a 

2.15 p.m. Racing from Chelten- 

425 Open University 

7.00 News on 2 Headlines 

735 Mr. Smith Propagates 

730 Newsday 
8.10 Brass TVcks 

9.00 Call My Blvff 

f920 Midweek Cinema: “Broad- Bousepun. 



~w jk ■ The Sra nonary Ark. 18.55 You Can make 

AllVYLlA it. .llJO Showcase. HAS Oscar sod the 

f J» tun. The Maharajahs. . HU5 vecortj Great VTootcroo. US p.m. News and 
Makers— Lena Zavaroni. 1145 Survival. Bead Report. 2.00 Women Onlr. 3JB 
113S Showcase. U5 p.m. Anglia News. Mr. and Mrs. S45 Tea tune Talcs. &28 
2.00 Hooseparty. 5J5 Mr. and Mrs. tJ» Crossroads. U» Scotland Today. SJO 
About Anzlla. ILV BaraKa. 12.25 a-m. Wilkie on Water. MO Quincy. 18.6 Rush. 
The Big-Quesdon. U-«0 Lato Call. V L6 Pro-Cdehrlty 

^rj»^ snooker. 

1040 amu SamcthlOE Difforent. HUS SOUTHERN 

The Unknown Vatican. MAO Fantastic imes. 5.0MA0 Report West 
Voyage. 1U0 DlgBla* for Yesterday, ojg aum. Mr. John's Green Gold. U40 
1225 Elaine, the Sinscr ot the Song. 1230 siabad Junior. UOO The Nature of 
Professor Balthazar. US pan. ATY News- Things. 1135 The Invaders. 1J0 p.m. 
desk. 230 The Sullivans. SJ5 Mr. and Southern News. 100 Housesarty. 505 
Mrs. Mi ATV Today. 1L* Drtve-In. Beny Boop. 530 Crossroads. MO Day 
PHD HEP Or Day: Wednesday Extra. UAO 

_ _ DUlU/riV Soothe rn News Extra. U30 Hie Butlin's 

935 un. Sklppjr. J»J* Mu C*ni« Grand Mostrrs Dan* ChamplonshlM. 
NoreDo. 1035 Yon Can Make It. 1UB 

Shou-caBo. 1LA5 Oscar and the Great TYNE TEES 

W ooferoo. fUB p.m. Border New*. 230 

5A5 Mr. and Mr». 030 


The Good Word followed by 

'iaajw .s n . tun c [hhmfiHc* Easf Neva HeatUte ami WpMbtr. 

•way Melody of 19?0 V Star- L» Sununa^^ '30 Stan on lee. IMO Cairncy and 

ring Fred .Astaire and n2J5 *' m '- Noreiio. loss wiwiife Cinema, ms 

— “ " CHANNEL Showcase. HAS Oscar and the Great 

, N __ Woo fcroo. 120 P-m. North East News 

Lookaroond. 2-08 Women Only, 
ua kswk” 5J5 Binr Days. 830 Northern Life. 

Medical. 1235 a.m. News and Weather 'ULSTER 

in French followed by Epilogue. 


Eleanor Powell 
11.10 The Budget: Sir Geoffrey 
Howe for the Opposition 
1120 Late News on 2 
1130 Arena: Theatre 


936 aun. Kimba, 926 Heritage. 

__ , . 1030 a.m. Calrney Novello. 1035 You 

GRAMPIAN Can Make It. UJD Sho^vase. 1135 

n, H Ktmoa bju neniaee 93S ajn. First Thin*. 1030 Caimcy. Oscar. UO p.m. Lunch tlino. AM Ulster 

836 ajn. tymoa. oentage. jf. TcDo «« vnu Can Make it. IL20 Nee* BeudUoca. 5JS Solo One. 530 

+10-40 Hopalong Cassidy: Wflliam Sbewcase. ILK OscXT and the Great Ulster Tclcviaon Hews. 5.85 Crossroads. 

Boyd in “Outlaws Of the Desert.” Wooferoo. un p.m. Grampian New* *'• ^P° r,a '.. Jf^Q „ Street* of San 

1145 Oscar. 1220 Here Comes Headline*. 330 Survival. MO Cramptan R Mal ' e n CoUnt - 

Mumfip T2.10 nm. Rainbow Today. L30 PoUce Newsroom. 1H30 1235 a-m. Bedtime. 

Vi P S(,;r IM Celebrity Concerts .Dionne Warwick). WESTWARD 

1236 Sounds of Britain. LOO h k Reflection*. 11.49 An Audience with ”” L.J 1 rr/iAL» 

News plus FT index. 126 Help! Jasper Carrott. 1240 a-m. The Mad M3B a.m. John UneiHinrili. l«« 
138 Crown Court 2.00 After Canadian fK.F.B.O.C.». You Can Make IL 1U0 Showcaic. 1145 

»j a a- m* - j m{ Tnft a m a Oscst 2nd tfic Great Wooferoo. 12 j T pjn. 

and Time A-_ain- G RAN ADA Cua Honcytoun's Birth lUj-B. Ufl West- 

Paint AJong witn Nancy, ivaioro of Thiiics. n •» qp i p p y wt! Ncir.s Headlines, fc.80 Westward 

420 How. 4.4S A Bunch Of Fives. 93a ajn. SeSme StreeLlfljs The Diary. U3 westward J3te NOU3.1I35 

5.15 Emmerdaie Farm. 

545 News 

6.00 Thames at 6 
635 Crossroads 

7.00 This is Your Life 
730 Coronation Street 

5.00 Benny HiU Down Under 

9.00 Send in the Girls 
10.00 News 

2240 a.m. Faith for 

Carte ontlnia. L20 p.m. Ttd* is Your Wesfside McdtcaL 
Rtaht. 508 This I* Your RisSn .second be- 
chance to see today's lunchtime tro- YORKSHIRE 

pnunmei. 505 Crossroads. 838 Granada T , . n ™ 

Hwxms. &30 Air. and Mrs. 1140 GJbitf- 930 *-«• 6*«Je tor Cassino. 1025 The 
vllle. Undersea Adventure* of Captain Nemo. 

. 1030 Little House on Uic Prairie. 3X38 

HIV- The Electric Theatre Show. U) p^n. 

1B38 a-m. Cairney Novello. 1035 You Calendar News. 5.15 Mr. and Mr*. 630 
Can Make li. ujo Showcase. 31.6 Calendar lEraley Moor and Belmont 
Oscar and the Great Wooferoo. UO pjn. editinos). U3D Darts. 

RADIO 1 247m Holiday Soeaal »S). U3S Omn Muse dpws (VUFi Regional News. 6JM News. 

1 . ... is\ 1138 Piano Recital fSt. UJS Con- 838 Quote . . . Unquote fS». T3B News. 

15) suwwrtitBie broadcast wrt from the Netherlands, part 1 «S». 735 The Archers. 7.28 File on L 830 

530 a-m. As Radio !■ 732 Noel 1230 pjn. (a Short rtaffi). 1235 Concert. The Spy that Stayed out in the Cold: 

Edmonds. 930 Simon Bates. 1131 Paul pan S iSl. 130 New*. 135 Concert H*Q tho new tcdmolosr of spying. 930 

Burnett indndins IS30 pjn. Neuabeat. (S3. 230 The Exohc Sound Of ... The Science Now. 930 Kaleidoscope. 939 
230 Tony Blackburn. *31 Dave Lee Dawn Chorus on record CS). 23o Haydn WeaUwr. U30 The World To-nl^ht: 
Travi* including 530 Newrbeat. 730 Smc String Quartets iS>. 330 Music from News— the Budget. U3 The Hitch-Biker's 
Something Simple (S) (Joins Radio 2». Pebble Mill: Schubert's "Winterreise." Guide to the Galaxy 'S'. 1130 A Book 

fS> - ? J * imarral RewMmS:. « a r Bedilme. 1135 Uic Financial World 

VHP -8353 35 aum. With Medium Wave. 
L3S News Headlines. MS The Gtuma. 

030 As VHF. 1A3Z John Poel 

1230-232 uo. As Radio 2. ' **W(mcmeise." part 3 . *35 Building a To-night. if * Today In Parh ament. 

VHP RadTos 1 and 2— 6JW ajn. With Library of record* ‘Si. tS^ Homeward 17 a n 
Radio 2 including 1.55 pmi.-Cood Listen- Bound. 1835 News. 1*30 Homeward 
tag. 039 Listen ro flu- Band (Si (con- Bound 'continued V UJO LtteUnea 730 
turned from Radio 2 medium wave). 035 The Art of ... Willi Dooiiaf 4a? 3 -. JS riTraV 
Sctnprtol Serenade rs>. 932 Bins, part baender on record*. IMO BBC Srmphony V" 

13. 9^ Sports DC*. 1030 With Radio Orchestra, part 1: Haydn. Bartok fSi. BBC RadlO London 
t. 1230-232 un. With Radio S. 0 MS The Arts Worldwide. 9JS BBC SO. one-, da b t-ttc 

^ part !: Sboetakorich tS}. 2030 The Con- imm ana \ nr 

RADIO 2 l|j66m and VHF fusion of Tongnes: Jonathan Steinberg 530 a-m. As Radio 2. 53# Rush Hour. 
cl a- -Wa S32 Ra* examine* the four national languages of 930 Holiday Scene. 13 London Live. 

^^nTUSsitafeSa ZSSFIky ®^Sl 3 m£S Sf a£L S? i B - rS 

g <■ p 3 .,p. f rt _ m m n*Aap>a tifngtn Il«2S ® 208 SDOUTUSO, AX> HlBDO Rfill 6JL0 

!iV SSZJ 1 “S3 Tonight’s Schubert Song. ^ Look. Stop. Listen. 730 In Town 100 

Ba-to 3 VHF OHiy^AJO-TJJO us. aad 11.Q3 im.'. 030 In Concert. 1033 Late 
ISn? «?> 5^730 p.m. Open University. NLdu London. 1230 As Radio 3. 1235 

2TS radio 4 01 

lucladlng 1.45 Sporr? Desk. 232 David . rin- wssin and VHF Cwuraons ' 1,90 aos ° - M RdQ “■ 

Hamilton's Ridnx. Md J». including LOnd ° 11 Broadcasting 

Rating at Cheltenham. 430 Waggoners' 835 

Walk- 445 Sports Desk. 447 John Dnnn S3S Dp to the Ronr. LS JVHFV 
(S* including 543 Sports Desk. M0 A Retfonai News. 7.TO News. 7.10 To-dar. 
Party Political Broadcast by the Labour 735 ti p to the Hour (continued!. 7.5Z 
Party. L6 Sports Desk. 7.62 Sing (VHFi ReglonaJ Newt. M0 i**ws. 83# 
Somethin* Simj^e- tS>. 730 Listen to the Today. 035 Yesterday In Parliament. 
Rand fSi. -0.08' European Soccer Special. 930 News. 9.05 The Livnut World. 935 

261m and 97,5 VHF 
530 ami. Morning Music. 4. DO AM: 
Non-stop news, travel, sport, reviews, 
information. U30 Brian Bayes. L» p-m. 
LBC Reports locUKKna George Gale's 
2 O'Cock Cali. 8.00 .kftcr 8— wtih lau 

930 Jota WF 9JS Sports DeSfcM.02 Somthook 2=,. mM Sev*. JMS In Ulldinst> ,jO0 Nlghtltao. 13M30 

Night-Extra, with Adrian Scott 

I’m Sony T J1 Read That Afisla 'selected Brtfsln Now. Z0JB Dally Service. 10.45 
repeats i. 2030 Hubert Grogs wya Thanks Morning Story • U30-News. 1I.B Bc.fl . 

for the Jterairy. XL M Sports Desk. 1134 seller. 3L50 Tales and Legrntta of the ranifcfl RadlO 
Brian Martbew tatrodneed Bonnd Mid- Hylands. 1230 News. 1232 p.m. You r ,nj_ j nr « m,- 

night indudtaz 1330 News. 230232 in and Yours. 17.7; The Enchanting World i»*un ana ww* vttr 

News Sunnniry. of Hinge and Bracket. ■ VZS5 Weather, 6.00 a-m. Graham Dene's Breakfast 

iTw/s -• aca*. ctHMAVHli programme news VHP (excem London Show iSl. 930 a-m. MlehacJ Aspel IS.. 
RADIO 3 464l».S>tereo&V«P >Dd B , Regl00lU U» The World 1230 Dave Cash (Si. 33B p.m. Roger 

tMcdlum Wave Mty at One. 130 The Archers- 13 Woman's Scott fS% 730 Loodoa To-day <St. 738 

1855 a.m Weather. 130 News. 735 Hour including 200232 News. 24! Listen Adrian Lore’s Open Line. 930 Your 

Yoor Midweek Choice part 1 iS>. 03# wiSi Mother. 130 Newa. L0S Afternoon Mother Wouldn’t Uk? It. with Nicky 

Non. US Your Midweek Choice, part Tfcaafre (Si. 350 Choral Evensong. OS Home >S>. Z13S Tear MyiR'a Uig Show 

S (St. 938 News. 935 Thin Week's Story Time. 530 pH Reports. S40 (S>. 23# a.m. Duncan Johnson’s Night 

Composer: Menddaaohn IS). 18.00 Serendipity. 1555 Weather, prosramine Flight (5>. 

CC— These theatres accept certain credit 
cams by telephone or at the. beat -oiBce. 


COUSEUM. ' Credit canH 01-240 5250. 

Reservations 01-838 3161. 

Ton Wit. Sat. and Tues. naat 7.00 Carmop: 
Tomor. 7.00 Force ol Destiny Unal pertJ; 
Frl. 730 Julietta "Haunting atraospbero" 
6. News. "Smoothly and sweetly tear- 
turod. hill ot gentle accessible mekxty'.r 
D. MaiL “ . . . a dream ... a most unu«na1 
and memorable operatic evening;” Yorks 
Post: 1 04 balcony seats always evaU*Mo 
day of performance. - . - ■ • • 


2*0 1006 
S36 : , 6903) 



Tomor. Sat. & Tees, next 7-30 


Frl. A Moo. 7.30 Ro meo and 

Amahi' seats tor all perfs. on 

10 a.m. on day of nert. 

Aye» EC1. 037 1672. 19 April" to 13 


ADEL PH I THEATRE. CC. 01-836 767 1: 
Evas. 730. Mats. Thurs. S3. Sat 4.0. 

• IRENE ,- — 

Of 1976. 1977 and 19731 -rt*- 


Sunday People. - ■■ _ - 



-751 T. 

ALBERY. 836 3765. Party R»&s, 

Cua Dkgs, dlo lll7l-( (trOiB, 4 S-lu.- 


6 p.m. 1 Men.. Tues- Wed. and Frl. 

7 As o-m. Tnurs. andsac worn 930. 





ALDWYCH. 336 6*04. Info. M6 5332. 
repertoire. Today 2.00 — red. price, orar. 

• ■ HENRY VI ParV9 v-v/ - 

"excels In speed and cmrtrajtsr Tbt.Tbpes 

tcent" The GuirdUA- 

RY VI Part ar ttomor.l. • 

RSC afso at THE WAREHOUSE mder 

“ Maamhcmit" 

W) and at Piccadilly .Theatre jR 

LONDON PALLADIUM. 0^^1-4^ 7573 

For 2 weeks only April 17. 750 Tubs. 

Artur. 9.00 Wed- ErL 4 Sat.grtS. 9.0 
w:e Aarll 24 moo., -Tnesn Thar. 9. 
Wed., Frl.. SaL 6rfS i 9, . - 



LYRIC THEATRE. CC. 01.VJ37 3606. E*i. 

8. Mats Tlrarc. 3. Sat. S.O and 8.30 
by Eduardo- HB*o»l 


“ AN ^VENT K> TRefe*iR?’”'D?^Wnr. 


MAY FAIR- CC. - ' 6Z9 3036. 

Mon. to Frl- B.O. Sat. 5.3o and 8-4S. 
GORDON CHATCR. “Brilliant.-” E-N^ In 

oy Stem J. So«a«. 

A compassionate. ' fdmiy. Hotcwy 

.. - m. i* ufarfM, — w Cm 

•ioQuent ntav. Gdn. “HUariods.” E.SM. 
“Wickedly amtreina. #- J9«w. SpaU-J 
blndlns.” Obs. 

MERMAID. 24B 7656. .Roourant 248 
2835. Tom Conti, Jbb« Asher -In 

BY EVERY C»imC . ■ - 

Eras. 8.15. FrL and 5aL S.i S. -UntD flat. 
Rc-ooens April 24. ■ ■ . 

at- 7.00); 

NATIONAL THEATRE. . " - 925 2202. 
OLIVIER topen Btaae): Fn. and SaL 7 
pr. prevs .». brand by 
bv GeoHreV' WIL 


LYTTELTON .pro^y^jj.^T 

(oocnsj Tomor 7.45 
bv David Haro. - - ■ -i- • 

COTTES L OC (small auditorfamll rf’ri- and 
Sau a (prova.1 DON JUAN COMB WQC 
FROM THE WAR bv HOrtath tranft bv 
Christopher Hampton. ■ - " 1 

Many excrileot cheap seatt 411.3 theatres 
dav Of oert. Car jwOl Restaurant 928 

2033L .Credit cam bkgi- -928 30^2-' 

^ncT : “7 . Tim. 7>li- 

New season Starts' April 20: ! . 




Prospect's tm •.comedy at . 

EUrtWc&T^ »«SfW 

•a great performance.- TSe rtnes.. 

— . Phone - btw office now Tor deans 'Md 

ALMOST 'FREE: 483 ^ Jmrnjdtate boofcjrKu. 

Only! Wolr -MantxwdtriS SAMSON JIN Dij April 10-1 S The Old Vic Yot 
DELILAH. NJB...-N|9ht(jr • at LB a-ttl tncLt ,'jhe Caucasian Chalk OrOa. . 

' '**■■' ‘ _ Mlsatog'^pflona. 


ARTS THEATRE. 01-836 2132. 



•’Hjlarloii* . . . ico R.” Sunday Times. 
Monday. t» Thursday B.30. Friday and 
-Saturday at 7.00 and 9.15. 


COMEDY. 01-930 2578: 

Evening 8.0. Thur*. 3.0. Sat. 5.30. 3 JO. 

Margaret COURTENAY. Dcrmot WALSH 
" Blackmail, armed robbery, double blufl 
and murder." Times. “ A good deal of 
lun.“ Evening New*. 

CRITERION. CC. 01-930 3216. 

Evening* 8.0. Sat*. 5.30. s.30. Thur. 3.0. 

” Impeccable ... a masaor.” Sun. Times. 



DUKE of YORK'S. 01-836 5122. 

Evs, 8.0. Mat. Wed- and Sat. at 5.00. 
in juban Mitchells' 


“ Brilliantly Witty ... no one snould 
m|** IL" Harold Hobson (Drama). In*cant 
credit card reservation. Dkmcr and tap- 
once scat £7.00. 

FORTUNE. 838 2238. Evg*. 3. Thurs, 3. 
Sat. S.00 and £.00. 

Muriel Pavlow as MISS MARPLE in 

Third Great Year. 



HAYMARKET. 01-930 9532. Evgs. 8.00. 

Mata. Wed*. 2.30. Sat*. 4.30 and 8.00- 




“ Ingrid Beromen make* the stage ragiat*. 
— unassailable charisma.” Dally Mall. 

" Wendy Hiller Is superb.” Sun Mirror.' 

HER MAJESTY’S. CC. 01-930 6506. 
Ev«nta0S S-00. Mats. Wed and SaL 5.00. 
with Derek Griffith* 

” It «* packed to bursting point with tho 
personality and sheer energy of . Bruce 
Forsyth." Sun. Express. “The audience 
cheered.' ■ Sonday Telegraph. 


Mon. to Thur. 9.0. Fri.. Sat. 7.30. 9.30. 



LONDON PALLADIUM- 01-437 7373- 

A " p arasi* bi > 

Karen Jackson and Kaaren Rauiand 

Box Ob Ice open, book now. 


B1-437 ZDSS. 



O PtN ^ SPACE. 01^307 6969. £**.'6834. 

i Actions. ORPHEUS. 

PALACE; . Credit CudA 01-437 60M. 
Mon. -Til ort. 8.0. Fri- Sac 6-P and BvCO 

.THEATRE... <W u- 

STRAND. .01-836 2860. Emnu AOO , ''**&•' . 
Mat- Thurs. 3.00. Sats. 5.30. and 

WE' RE BRITISH - •' jLi- ‘ 



ST. MAR TUTS. CC. B36 7443. Era. S.00. * 

Mol Tues. 2.45. sao.. 5 and. 6. 


TALK OF THE TOWN, CC. „ 734 SCSI. \.,4r ■ 
8.00 Dielnn^ Oanuna. 9.30 Soper. Revue 1*. 


and at II p-m- • 


- Tumd»r-Sund»y 7.39. 


In BLEAK HOUSE- . , - 

bv Charles Didcwu • . 

. .(In 4 parts. In Repertoire) 

VAUDEVILLE. B36 9988.' CC Ears. «-*, ' 

Mat. Tues. 2A5, S4L 5 and 8. % ~ 

CM nah SHERIDAN. Dulclo GRAY *'>- 
-Eleanor SUMMER FIELD James Grout . ^ 




' «tha with -aflotner vrtio.1 - 

Re-enter Auatfia ..... _ 

dunnlt 4i(L Asatha Christie is ttaUnng 

the Wot End vet again wtth .another ■-'T... 
her fieraJliniy Inflenimu (nordwiS- - - 

mvstorfes." PHIx Barker. EuenUig ton ■; 




Prera. from April 2 5. Opens- May L ^ '■ " 
e.. Covew 

CH-834 1317.^7-, -.... 

Z'Xjrs ■ 
•Si*--’ • 

Garden. 836 6808. Ri 


bksfi. AUhrych. 

•WO. Ad*. 

WHfnMALU 01-930 6692^765.*-”* 

-E*9L 0.30. Frf. and SaC 6.4s- and 9,00. jc 

Paul — ’ 

Doe to- 

Raymond presents thr flensaOeiui ^ _ . - 
Sex Re*oe of ibe Century - (SH - . 
DEEP THROAT ... ■■■ - 

arcrwtitlnlas . _ 
- aeason extended. 

pome demand - J “ 

W I NOMILL THEATRE.- CC - 437*6312. jv.; -*7:. 
Twice NlWrtly BOO and lO.oa.'..-- ”1 . = . 

OPEN SUNDAYS 6.00 and 8.90. 



)ND presen is 



,7 Takes, to lnfirwwenied A |t«nlU:H|ial '■ • > ; 

-•“■JfflSiL ' 


. - .-AWHtoi 

and’ ‘smoke In- H» 

0-1-836 2294. tomor; 7. 

’*,»«. a.15. 

Frl. A flat. 6 A 


A New Comedy by Royee Rynn 

836 1071-2 9 a-rru-6 P-fll,T*J. 8. Stu. 
4^S and 8-15. wed. Mat.. 3.00 
E*b: Standard Award and SWET Award 
. Royal Shakespeare Company m 
by Peter Nichols 

(Not suitable lor children! 


RSC also at AldwvCb Theatre. 

PRINCE HOWARD. CC rionneriy Casino). 
01-437 6077. previews from June 12. 
Opening June 21. EVITA. 

PRINCE OF WALES. CC 01-930 8681 
Monday to FricUv at 8 p.m. 
flit. S.30 and 8.45. Mat. Thur. ,34)0. 
—The Sun • 


OF LAUGHS.” News 0# the World. 

EEKTS THEATRE. CC 01-734 Il&fi. 
Evenings 8.0 Sat- 5.0 -and B30. 

. Variety Club of GB Award 

A Ne** Play by ALAN BENNETT 



Plays and Players London critics award. 


At T p-m- -9 P.m. 1 1 P.m. (Opens Suns.) 

PAUL RAYMOND presents 


Pufly Air Conditioned. You. may 
drink and smoke in tbe auditorium. 

Suns. ;b 


P-m. (No perfs. Maori 
3 A 6.30 Am. 

- -TenjosaiiM Theatre Co. tn 
Shuii Tcravama's 

S5 HOUSE. , 267 2564. 

" Ert. fl until Fn. Last i cls. 


sndonne “ 


. present th^London aymltN of 

tOYAL COURT, 730 174S. 


. - • ’ bv Nigel Williams 
“ stunnmg new ptay." F. Times.” Blazes 
-wtai -life . and forces." Gdn. See also 
Theatre Upstairs. ______ 

tBYALTV^ Credit cards. 01-405 E004. 
Monday- Thorsdav Evenings 8.00. Friday 
550 and 8. as. Saturdays 3J30 and 8M0. 
Lone on critics vote 

.. ... Best Musical of 1977. _ 

Bookings accepted. Major credR carta. 

_ _ ung 

Mary CFMri frv’i smash-Mt Coroedt. . .u. 

A CATHOLIC . , V: ‘ 

’Supreme conjeily om sex. and reds Set 
,Pa> T 

-ma^^ou’SSakV with ' 1 •* :• 

LAUGHTER." Glianllan. - •• . 

YOUNG VIC (oeaArtld VlcJ 

light 7-45 Royar-f 

-Tonight 7.45 I 
in macbeth. 
returns on door. 

928 630 . 

ayarflhakesoeare Umwf"- i. 
ftiriifwneit sold cut. Am j;-.. 

-.) NiLperf. Frl. • • 



ABC T_*_2 5hart«oonr s iMe._ 8.38 _8K1. 

S*P. Plerfe. ALL SEATS 9K9LE. 1, Tfe 
74 TbSkS Ot Astortx (U). Wk. A j* 

2 JO. bJO. 8 JO Hast Bayj.. iL.-tm ., 
uooobve Girl IA1. Wk. & Sun.- 2 AO. 9-W- 
8.10. - •_ '• 

CAMDEN PLAZA, (opp. ■Camdeo T0«" - 

Tubc>. 485 2443. „ Mefr'lfr a 1 
Resistance tnrliier THE ARMY IN l» 
SHADOWS |AAa. 3.10. 5-45. 8-23. 

CLASSIC 1. 2. S 4, Oxfcrd St. W 
Tottenham Coins Rd. Tubei. 616 OMO. 
l: BMammi 1900 Part 1 (A). Pros* 
•2.15 5.1 5. 8.15. 

z.- THE HIDING PLACE <Ak SCP. f" 1 * 
2.00.. 3.DO. 8.00. 


Si GOorgc Segal Jane FojW*- FUN W™ 
JANE <AI. 2-20 5.45. 9.JR 

DICK. & JAk_ - 

Neil Staton’* MURDER BY DEATH :<AL 

4.00 7.25; 

4; BartoluccTS 1900 Part 2 OCL mp 

2L»..SJO..d.lS. .... - — - 

CURZON, Curaon Street, W.l. 499 -Ml 


luB-mrw.) ■ A apaffclmo nen -frf» Ife. 
CcKTicdi. Directed with 6ne*u! by jfi i.. « 
Rooort.” Sunday. Exprosa- Prow, urisa,.^. l : - 

inot Son.). 3.35. 8.3 



Strirfry MacCaine Anne Bancroft 
during Mikhail Baryshnikov. Tho Tms*g >^ 

Point |A|. Royal Charity Proihiore:To«n - - — 

at 8 oo p.m. (Theatre dned to Gem™ . 
-PnMleL Normal progs, from-tomorim;-^- „ 

Prtxrc'wk. 1.05. 4.30. 8.10. Son. 33Q- 
7.45 .- LKb show kri. di Sat.. 1 1.4S PAL 

ODE ON HAY MARKET (930 2738-27m.- - 
Jane Fonda. Vanessa Redgrave I" a W» . 

ZMniiana Mn -JULIA. (AJ. S*p, n^-L, ■- - 
Dally 2.30. 5.45. -8.45. Featurt . 

2A5. 6.00,. 9-00. - All seats bkbk-' « >-. - ■ 



kind (At. Sep. prog*. Dir. — — 

<10-00 Not Snn.j. 1 aJS. 4.15. 7.4S. Uf,^. 
perts. Tu<s.-SnU. Doors open 11.15 s4-i-. 

All seal* may . be booked, tucri 10 - 

prog. ' 

E 1930 ■ 

-THE THlW - 

v. Door*.wJ> ■' ; - 


STAR WARS lUl. Door* Open Dlv. l-« ,1'. :: - 
4.35. 7.^n All Wh hkhle. -vu-Dt • 

4J5. 7 JO. All seat* bkbfr. evtept 
pert*. Wk*. 

PRINCE CHARLES. LoH. So. 437 ~ ‘ ii, 

-- SWEPT AWAY i*i • 




‘ ’ »"trr ATTAT IJH _ ■ J -7. l.- 

Perts. Dhr-- lint 5ims.l 2.1IL -S- 

'. Late snow. Fn. 5 Sat. 11.55. 5*» v . 

LIcTd Bar: 

SAVOY. 01 -836 5885. 

NUirthr at 8.00. Mat. Wed. 2-3Q. 

• sat. LOO arm e.oo. 



The World-famous Thriller 
“SoefrB the May aflaln Is. In HKL an 
utter and total Joy." Punch. 

— It util ran Mid ran again.” Suil Tel. 
Browing* £1 to £4. Mats. £1 to A3. 

SHAFTESBURY; CC 036 6595. 

jjvgs. St 0.00. Mats. Thurs.. SaL 3.00. 




01-359 1394 

by Arnold Weaker _ __ 

Evgs. 740. Mat. Wed.. 2-30 

. Moving and inomtaaMaO *’ TUML 
. "AWoluttlY Maom Scent ” Evg. 


SCENE 2. Letc. So. iwardoor St.) 


UJJ. Sun^Fhurs. 1.30. 5.35. 9-35. JftL. 
and Sat. 12.40. 4A5. >2.45. .TIB. V 
Sam. -Thor. 3-25 7 JO. Frl. and = :.-- 

235. GAO. TO. 40, ... .. 

STUDIO L "2. 3.-4. Oriorfl Clrcux' V 

TTrtfl .... • i M * s 


(A) Progs. 2L55. 5.30. 5.10. 


Mmw-Sat. ConwmoUa 10.30 aao. *»■ - ;■ 


2.30 oJ"-_ 

TRAVELS fUl ... 

- Ml dkf^CMl/a^ AdujJ^ ® 



SIsE B'eSROpM ' mazurka ■ xT. sjs 
T. tS. Cate .Show Sat 10.50. Bl j| I f 

4. Woody Allen Olana j^eaton I 

SLEEPER (A). 33S V SM 0 % 9.05 Vo ^ I JJ 

SLEEPER (A). 3.35. MR. -yd 

AND BEA3H r*J .tJJ. 4 15. 
snow-sat. ic.40.-... 


■ • • -38%?^ 

U&'fS- ■ • 

Businesses for Sale/Wanted 
ducation. Motors, Contracts & T 
-Personal Gardening 



- ■£ • 

450. - • 

2 joq ■ 

• . ri^v. 

.’t-.y .... 

420 — 


Premlnm pcfeltlons^jrratinble 
(Mbnmimi dze 4ff ertflBBk oatV; ■ 
£1^0 per single c^onux on- extra ; 
• . Por. further 4epnlswrite to : . 
Classified Advertisement 

- ? 'T 

.• V»l! 

• "TlnaJKaal limes, 30; Cannon TBC4 F~*p 5 

i— Ll- ^roMimia— ‘rt 

- r. ’ .rflt'-i 




- ^aic5al. Tinifcs Wednesday April 12 1978 


s New? 



‘ ' towfcr block flat toinanor merclals with the little boys 

tons* ", 7 ^” ,77T T ; V - ’" 10 assimiiavod domestic stories and amount of sex on the side. 

' oae W .the commonest tone flannel Shortis. and lace-up none of that sex or swearing 

Soho Poly 





JotmBowen's elegantly written 
lynch-time play sacrifices details 
of character and plot to an ulti- 
mately humdrum discussion oF 

s::r sex or swearu,g WI sy w^aW ,, &2S. -ftl 

: S d b^' °S t0 farait ^ an ?- aU i he B «t even the most charitable coul/as about merchaS ! E “f ipic i? t a v n ’ cns,on 1 he,ween 

^ onts !?? cameraw ort c makmg des- onlooker could not call its ideas banking pr book publishing: 1^°“^ min* r S E* ,s « 
- n?,;5 «?*■ or approach “ new/ 1 there is nothing “ new " about it. ‘ the wflt - flf much of Mr BoweD s 

zlJ «L a J - qai ^’ 00k 4t tftB «rwI lewl- The 'general idea The same can be said for However if you sought 
^'_.!5f__ dismi ^ ive response seems to be that All Human Life BBCl’s The Standard, even if I most doR-eared programme 

ti,g j writing for theatre, but l am 

Oh nnrhin^T^rS"' — w “* — c DDVit s me sianaara, even ir 1 most dOR-eared programme of ‘ , 0<»as ion. his 

no doSffr *S?™ n ^ Hw-or at any rate alllower shall enjoy it a lot more since it the week parading under the resonate 

'.akere middle class Jfubtuban life of is the contemporary story of a “New Series “ banner you had trough the stage action. 

. m ad ^ocause, tta twenties. daily newspaper. (Tfcongh the to go to religious broadcasting The scene is a house in Purley 

11 13 ™udamental to with minor variations in suggestion from some newspaper and BBCl’s Cross Question on where Muriel (Susan Engel), 

* • “ ■ attired in apricot silk and black 
negligee, welcomes u customer in 
pinstriped suit for, ostensibly, 
' slap and tickle. After a 

. last 3BBC current and Holding On— all 1TV pro-' Malcent or be an oilman to enjov chestnut about Christianity and few coyly sprung deflationary 

v jetennlned to auctions. Of course they vary. The Power Game.; Aeain the politics backwards and forwards, ironies— Muriel keeps her bound 
... .ova otherwise: Brows Tacks bad Some. have had more of a single nmditPtinrr rhie lima hu RRP 

av * ~ - have had more of a single production; this time "by *" BBC Are there then no series in Barbara^Cartland well concealed, 

iw?r •**“« ScotlMffl. looks assured, and for the schedules which really 1 “pussy is hidden away in a 

; .. : . )wer, and W*e Man Alfee Report rHtrfdfafl On;. One. <SBm; was once the writers appear to have deserve the “New!" label? I > basket but will be inspected 

r '* 0llly Jufit **»■ written for television while the a fair «rasp of the realities of think there are ai least three. • later, Mr. James confesses to 

“** ?»*»» "ttars w«» KdJptatloM. And modern offi c «- First A Tole Of Three CUiee. u * - 

' 'SJT 1 JiliL J** 1 *, that hippy standards of acting, direction, nohodv with ** PRESS 11 stuck in on BBC2. in which Frank Smith 
--viSr aumerijJ_ *° d •"-.•“■JR-?? they do a hatband, but .widely varying and Maryse Addison employ the 

2 iasignlflrant ttp of a . vast share the- habit of amassing views on a mandatory meeting novel technique of studying 

' comprising millions of Characters it the cost Of creating U f the journalists’ union That cities via their television services. 

. - iddle aged and elderly people Character.' . is true enoueh to life ai Charles Wheeler’s report on 

been medically Thus In People Like Us we Yet it does secni pretty Berlin was remarkably silent on 

. bo have 
1 -'ibituated 


ited to barbituates and have a pair of spinsters, one obvious already that this «p « such matters as the East’s de fee- 1 bizarre role-p 
^drugs. Only Monday's widow, one widower, one Italian ^ not really going to be about tors - but Jt was undeniably a Bound- by r 
ma saved BBC current immigrant, several bachelors, those problems that aehiaiiv ntost unusual programme and I jment chaii. 

ji face with CItve girl children, boy -'children and exercise*" 'today's newipapermcn b°P e 1° write" more about thelDlgnam)^ is coni routed by his 

being a great one for rigour and 
discipline (“ Satisfaction requires 
both' effort and pain ”) — we learn 
that the couple are father and 
daughter. Their relationship 
such as it is. can only be 
explored througb this process of 
bizarre role-playing. 

rope to the punish- 
Jatnes t Mark 

Future column. 

four-part drama 

?i *£* Si; infocmative- and cun- so- on. as though somebody had (freedom of the Press and the in a 

tsi made, aroflle of Roy ordered them m a a closed shop, automation in which Second 

“^•ii^lattersley, ihcludmg the world’s pattern book. But not . One of journalists' keyboards could sun- series Law And Order wntten 
three-way TV interview -in them has the true individuality plant 1 coraposi tors.^ the drift my b - v fJ - F - Newman and produced 

-7'-* V' whirii makes for ^eat -drama from newsprint Inter pure “Sec- Jv Tony Garnett, again on BBCi. 

-v.But leaving aside current (and great literature, arnd most ironies and so on) but Instead, Neither its drama-verm* tech- 

‘ tj-'ents programmes, there 'are in other greats come to that). Each vet again about the common ni d ue nor ils rasping stjle is new 
base new series " ** ' ' ’ 

v m -_ 

and serials looks like a symbol- -1$. is com- human factor which all tele- <tb° u Sb both are still out of the 

.introduced practically - every potently enough dona and will vision’s other business and ordinary) and its subject is com- 
;^ek. The old habit of saving please that large portion of the industrial dramas have been monplace. »et the three 
dozens of new series to open audicaice which - wants easily about: power, with a very small together create something desenr- 
;&1 fresh season and eranunlng - - • ' / ' . me the “New! epithet, as 1 

daughter's rather unformed pro- 
testations about bein'! a slavp to 
his will, and he recoils in horror 
as Muriel removes first her 
blonde wig and then her silk 
hefore wrapping herself up in a 

Susan Engel and Mark Dignam 

""^.■Sshi all into one week doesi 
•*."» cr^-^PPUy, seem to be tailing oft 

« . 

lese days they tend to be 
H^;ead out much better, though 
__ii/.;arly the last -week pr so has 
,La1 ^ ; ^E;n more new material than 
t^-ial, with the arrival of firing. 
■^Yet still you hear _people 
. : -v‘thely insisting, ftat “QSuae’s 
^tiling new on telly.” The 
.‘-f/uTible probably sterna from that 
'..v’V'burite weasel-wOTd -of the 
. 4 .,*;-«3i3aan: new Radio Times and 
V r-:-’ . Times apply tb% - phrase 
‘ -‘C-'ew Series - indiscriminately. 
- further helpings of estab- 

... . . ied programmes - and . to. 
. - != - i'-j-jjuinely new Ideas.. So the 
:;~:wer can hardly be. blamed if 
flick? through, the magazines 
casually dionisses all ‘ the 
' ". / n/years of work which go into 
•• a single evening’s tele- 

v- on by declaring there is noth- 

" >-^__fter all, ITV's Dectnisk, Pis- 

-- ’^A_ 

b u "'■K 

... — very 

.-•"riliar to' ns. The “New 
-“^es” tag * on ihem J simply 
•’uns “ these are -not repeats.” 

. -■ .. i-'haps we need a different 
"Vase for genuinely new 
= ;: ‘ ferial. ... 

r . ^ben again, perhaps we don’t 
: riuse even . among . the - 
_j^ilnely hew there is n lot that. 
ri» s awfully : familiar. * Take 
, • ’ • . don Weekend’s People -Like 

it is a serial adapted frdm- - 
/ F. DeWerfield’s • r Avenue **• 

’ .**!<*, dealing with the lives of 
• ; * : rgish collection of people all 
‘ -'Uig in one read. . 

‘?'.p iS what I tbihk of as Hovls 
1 M not Just because you can 
**- :r \ 1 it endlessly thin . but. 
_ .use it looks very much like 
.^f Ridley Scott’s bread com- 

Leo McKern as Rum pole 

suggested at greater length on 
Saturday's arts page. 

And third. Rumpole Of The 
Bailey a Thames production 
which appears at first sight lo 
be another series about a man’s 
occupation (like Dr. Finlay, 
lawyer Sutherland, detective 
Marker and so on) but turns out 
— unless Episode 1 was totally 
misleading — to be mucb more 
about the man than the job. This 
distinction which may sound 
subtle is actually crucial. 

The writer, John Mortimer, has 
obviously used bis own 
experience as a lawyer to provide 
an authentic setting for bis 
character: “I have the honour 
lo be a hack of the Old Bailey" 
Rumpole avers, and admits to a 
thrill every time he enters the 
place. Inside, where he meets an 
entire • criminal clan named 
Timson, Rumpole asks the 
youngest “Well Jlmbo. what's 
tbe defence?” to which the youth 
replies “Well I never dun nit” 
Looking like the Owl in Winnie 
the Pooh. Rumpole . remarks 
“Now that’s an interesting 
defence, most unusual for a Tim- 
son” and a great deal is estab- 
lished very rapidly. 

The important thing is that 
instead of Leo McKern's Rumpole 
serving the plot it is the various 
parts of the plot which serve 
him : all three settings — tbe 
law courts with the criminal 
family, the legal chambers with 
the other partners, and the 
Victorian service flat with wife 
and son — are all subservient to 
Rumpole himself. What we , are 
getting is fictional biography 
with some fairly witty Hues, and 
there is a dreadful shortage of 
wit on television. That alone 
would justify Rumpole's claim to 

At this point in the writing, thinks that her opportunity of in front of her fettered father, 

functional dressing gown and obvious cliche penetrates the being a Probation Officer or a The final impression is that 

insisting' that he looks on her as stilted dialogue and the conversa- champion of buttered wives is Muriel is as muen a victim of 

herself, an oppressed victim of tion becomes a& stale as its melo- irredeemably lost. Limply con- schematic playwriting as of 

domestic tyrannj. dramatic conclusion. Muriel ceding defeat, she si us-her wrists parental indifference. 

Wigmore Hall 

Peregrine Quintet 


“n” is the enigmatic title of delights in such pieces, a major 
Michael Finnissv's piece for an third “n' showed the same 
ensemble of up to four players Pleasure in sheer sound and the 
which was. given its British ^ 

premiere (in a realisation for we’ve heard here : whether there 
flute, oboe, -clarinet and horn) was any more l0 it ( 0 r indeed 
during the Peregrine Quintet's whether thcr? was meant to be 
concert at the Wigmore. Hall on any more to it) 1 doubt. 
Wednesday. (To be precise, this For remainder of the 


version, a previous version hav limitations of the wind, quintet 
ing been first h°ard in Britain, repertoire. They were joined 
somewbat confusingly, in 1974 — by Antin Weinberg’s bass 
we have alwavs lagged far be- clarinet in Jandcek’s sprightly 

hind the continent in performing WWdi - but «W« only 

work given that, could honestly 
this comport s music.) be first-rate. The other 

If the programme note had £»?ch piece. Foersier’s D major 

not told m that “,lthough they ^L ^th/rert of U.e%ve'££. P g. 
all begin at tbe same time their ^ith plenty of good humour ir 
music, is, pot- otherwise J'co-^the playing but not much match- 

ordinated” I would have praised ins of phrasing or care for 
1 uiirh which the balance. Villa-Lobos’ Ch6ros 

the -precision with which the , . . _ „ ... 

intaiRMtuinii *n„r No. 2 revealed Lee ore Smith, 

interweaving of the four instru- ^ as the most polished 

ments, placed at opposite comers 'member r f an otherwise uneven 
of -the hall, was controlled, ensemble. Jean Frangaix’s 
Melismatic flourishes oE sound Quintet breathes an air of 
from- one instrument always sopbisticated delicately naughty 
- mD . refinement which to this quintet 

Joined to emerge over a suitable wafi M f ore jgn as tbe bird from 

Background from tbe others ; whom they qnite unaccountably 
usiutily single notes or. rarest of draw thetr name. 

Elizabeth Hall 

Harewood on Callas 

The British Institute of nirians of EMI and the BBC. not 
Recorded Sound, for the annual least by the lecturer himself. 
Adrian Boult lecture, invited Three times— at the opening. 
Lord Harewood tu speak on context as part of the aria. 

Maria Callas. The Elizabeth a " d a g»‘ D at , the end— we heard 

«, . .. , . the phrase from the beginning 

Hall was packed: a tribute to a 0 f Elvira’s mad scene in 
singer who impressed her unique Bellini's Puritan! For many of 
gifts on - a period of operatic us this must have been, as her 
history that might otherwise first gramophone record, our 
have. been comparatively colour- introduction to Callas: the thrill 
less. Lord Harewodd had the and sudden shock of the revela- 
fortune to hear Callas at one or tion of a strong and original 
two crucial points in her early personality which only a- great 
career. He worked with her singer can provide. With 
subsequently at Covent Garden generous excerpts from her 
and was a personal friend over famous 1954 Norma recording, 
a long period. These factors. Bellini and Verdi (iVobucco and 
together with his consuming Tranata. as well as Vespri) were 
passion for a knowledge of good paramount Rightly so, of course 
singing, give him exceptional the ultimate importance of 
authority. Callas lies in the way she en- 

As illustrations he used ex- allied us both to rediscover a 
cerpts from a BBC television vital part of the repertory and 
interview he made with Callas to hear some familiar operas in 
about ten years ago. and from a different way. 
a number of recordings,, inctud- That she did not do this en- 
ing a “live” excerpt of the tirely by unaided instinct was 
Vespri siciliani production con- made clear by her own refer- 
ducted by Erich- Kleiber at ences to two great influences on 
Florence in 1951. and memorably her career— the conductor Sera- 
described at the time by Lord fin and ' her Spanish teacher in 
Harewood himself -in tbe pages Athens, Elvira de Hidalgo (her- 
of Opera. Not everyone appre- self an accomplished performer), 
dates the amount of effort Callas does not appear, in public 
necessary to ensure that an illus- at. least, to have stressed her 
trated lecture of this type goes Greek origins. Yet they at once 
as smoothly as this one did on marked her voice with a strong 
Monday night An immense flavour and deprived her of a 
amount of expert work must national repertory, 
lhave been put in by the tech- RONALD CRICHTON 

>k Review 

-t- ... ' 

by B. A. YOUNG 

History of the Natumal 
.. ■ >*tre by John ; .Elsoxn and 
1 -cholas Tonujlin. Cape, £8.50. 
: -2 pages • - / 

; cholas Tomalin was killed -On 
-Golan Heights in 1973 when 
-y history, of the National 
•^.tre was partly written. John 
m has completed the work, 
uniting in the process what 
loins Tomalin had . left; to 
-re consistency of style:' The 
":t is a clear and comprehen- 
: -book that is well worth hav- 
: 'and though it falls into two 
.icf and contrasted sections 
, is- not the result- of the dual 
' irship. The firtt section 
;’*s the period from 1848 to 
-.-t 1963. The second covers 
estation, birth and.hringing- 
- f the National Theatre, we 
have. ‘ V. 

. lay and dispute have houn- 
7 the scheme— the schemes, 
[*'r — since Effingham- Wilson 
. forward the idea’ in 184&. 
Mu’s proposals, , which he 
-iced as a better alteriia- 

trve to the purchase of Shakes- 
peare’s ‘ birthplace. :received 
approval but no support. Discus- 
sion went: on (and the Old Vic 
and the Shakespeare Memorial 
Theatre began work), but the 
next urgent -step did not come 
until Granville-Barker and Wil- 
liam. Archer’s proposals in 3903. 
A • Shakespeare Memorial 
National Theatre committee was 
formed, after a proposal to erect 
a monstrous statue had been pro- 
videntially dropped^ 

' In i9l3 a Private Member’s 
-Bill was passed in the House of 
Commons providing that “there 
shall be established a National 
Theatre,” but not -providing any 
money for it The committee 
purchased a site, in Gower 
Street War broke out in 1914. 
In 1924.' the British Drama 
League launched .an architectural 
competition,', but by' then the site 
had .been sold. Other, sites came 
and - went, culminating in the 
triangular patch' opposite tbe 
V and -A, which was bought in 
1937 and has been a car-park 
ever since, though Lutyens 

designed a theatre for it 
broke out again in 1939. 


Before it was over, schemes for 
the South Bank had begun. Plan 
followed plan, site followed site, 
the scheme was to include an 
opera house, it was not to include 
an opera bouse. Elsom and 
Tomalin go through the endless 
delays and discussions in minute 
but never tedious detail. In 
1962, Laurence Olivier collected 
his company. In 1963, as the 
National Theatre, it opened . . . 
at the Old Vic. Sir Denys 
Lasdun’s -great house opened, 
little by little, in 1976. One day 
it will all be finished. 

There is an intrinsic difficulty 
in writing a history of some- 
thing that is a continuing entity: 

you get to the point where you 

are -bound to expatiate on the 
differences between the people 
who are still, involved. There 
have been crises within the 
National Theatre company, and 
some of them— the loss of Wil- 
liam Gaskill and John Dexter in 
196&67, Tynan’s dispute with the 

Board over Soldiers. Paul 
Scofield’s reluctance to play 
Coriolontu under Wekwerth and 
Tenschert, the withdrawal of 
Jonathan Miller and Michael 
Blakemore — of importance. It 
might have been discreet to treat 
such things cautiously, but this 
book is not concerned with 
discretion but with history, and 
tbe authors, without taking sides, | 
deal frankly with them. 

The National Theatre scheme 1 
can never be called “finished,” I 
for each time a curtain goes up | 
(or house Tights go down) in 
, one of its three auditoriums it 
takes another step forward. But 
the pioneers have achieved far 
more than they could have 
.thought possible. There is not 
one State - subsidised theatre; 
there are at my latest count 80. 
not to mention Innumerable 
independent companies with no 
houses of their own; They are 
all under-financed; but they are 
there, and it is up to the 
Effingham Wilsons, the Granville- 
Barkers, the Jennie Lees, of our 
day to ensure that they stay 

news in brief 

The Damaged Poussin 

» tittle over a week ago The 
'■ : .tt£ on oj The Golden Calf, a 
apiece by the seventeenth 
French artist Nicolas 
in, and. one of the very 
paintings in the collec- 
lay in five pieces on tbe 
the victim of the -worst 
,ial attack in the. National 
ys history. • 
m a large work, and had been 
cel lent condition: now, of 
■\ it can never be the same 
- and to see it in its present 
'• so comprehensively ripped 
' altered, is extremely shock- 
But the good news is that 
>bt have been worse, and, 
• than that, it was. evident 
Press, were shown the 
yesterday, that Arthur 
the Gallery's chief re* 
' has achieved already a 

canvas, in being slashed 
jrn so violently from -its 
1 '-£■ V ier, had been polled 
, wety ont of shape, shed- 
paint smd crazing .tbe 
- But, though much ^ paint 
.Indeed lost, all tb6 canvas 

was retrieved, and even now the 
jig-saw is at least complete: the 
canvas las already been shrunk 
back into place on its new 
support,, each piece lined up 
against its neighbour, thread by 
thread. Moreover, the gashes 
missed the heads,' and the most 
’sigmfleant parts of the bodies, of 
all the major figures in the com- 
position, a great stroke of luck. 
We could see that a fair re- 
storation is certainly possible. 

The laborious but infinitely 
skilful business of making gopd 
the lost paint with filler, match- 
ing every tiny Shif t of texture and 
colour, will continue through the 
summer; and Mr. Lucas expects 
to have the painting ready once 
more for public exhibition by 
the end of tbe. year. W-P. 

opened a new gallery devoted to 
weapons. It traces the develop- 
ment of weapons from medieval 
times -to Northern Ireland. Tbe 
design, by Hulme Chadwick and 
Partners, makes the most of 
limited space by. creating an in- 
tense maze-tike effect which 
ensures that the spectator is 
not overwhelmed with objects. 

The cases tend to be circular 
so tbe weapons can be viewed 
from all angles and there are 
special effects, including an elec- 
tronic rifle range,, to involve 
younger visitors. The earliest 
weapon oh show is a longbow 
rescued from the wreck Of Tbe 
Mazy Rose, which sunk lit 1525. 
The - latest are weapons used 
against 'urban terrorists. 

best first novel or book of short | 
stories of the year. 

The judges for 1978 are Walter 
Allen, critic and writer (chairs 
man), Elizabeth Berridge, 
novelist and Mervyn Jones, 
novelist and journalist. 

- Tbe prize, established in 1975 
by authors’ agents David High am [ 
Associates to mark David 
Higham’s noth birthday, will 
again be awarded on his birth- ( 
day, November 17, 1978. 

Rembrandt drawings 
_ for Scotland - 

Array Museum's new 
weapons. .gaUery 

Dayid Higham Prizeior 
Fiction now worth £500 

The National Army Museum in 
Chelsea, one of the . smartest 
museums in London, this week 

In 1978 the David Higham 
Prize for Fiction is going up in 
yaJue from £350 to £500. This 
prize, administered by the 
National Book League, Is for the 

Lord Donaldson, Minister . for 
the Arts, has accepted the recom- 
mendation of tfie 'Standing 
Commission on Museums and 
Galleries that two drawings by 
Rembrandt, Tobias and Sara and 
The Sacrifice of Manoah, should 
be. allocated to the National 
Galleries of Scotland. 

The drawings were accepted I 
by the Treasury in lieu of estate! 

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i**' 5 

.i . , ; ;,:^anc^ 12 5978 

sees low, 

Strikes hit Smiths Inds. in first half 

demand for capital 

INDUSTRIAL disputes within the 
company, 'resulting directly from 
rontinued support of the Govern- 
ment's pay guidelines, and with- 
in the motor industry had a 
severe effect on the vehicle and 
aerospace sectors, of Smiths 
Industries in the hair year to 
January 28, 1978. Group taxable 
earnings for the period fell from 
£9.56m. to XT .49m. on sales up 
£10.75m. at £11 5m. 

Economic conditions in Aus- 
tralia were depressed and the 
results of the Australian company 
were also affected by a strike of 
power workers in the State of 

It is estimated that these major 
disputes adversely affected trad- 


Lex concentrates on the implications of the Budget which 
initially was regarded in a favourable light in the Stock 
Market. Elsewhere, profits at RTZ wore slightly lower, in line 
with market estimates. Profits were also lower at Smith 
Industries at the half-way stage, but the company has already 
indicated this outcome, given labour problems at two of main 
customers. Flat demand hit Senior Engineering in the second 
half and profits for the full year are only 13. per cent to 
the good. 

pany, which include sales and 
applications engineering offices, 
parts and services department, 
warehouse and workshop facili- 


‘ - Date -• Corre* " Total 
-' _.s- --Current*:- -*■ o£- spending for 
- payment payment div. year 

Camrex (Holdings) ”32t - L77 356 

• Lyon' and Lyon 3.3 • . Kay 12 U3 & 

6 .. -.-July 3 482 95 

pneering ... 05& - June 2 0.52 117 

Lusfcries ini 329 . June 12 259 — 

rrow ...... L29 — *116 215 

£1.48m. at 

ing profit by about £2.5m. Else- 
where the results were in line 
with expectations, the directors 
say. There has been a good start to 

the second half and against a 
background of a lessening in the 
level of industrial disruption in 
the areas in which the group 
operates trading profit for the 
year is expected to recover the 
shortfall in the first six. months. 

Trading orofit was £L59m. 
lower at £S.37m. with vehicle 
manufacture slumping to £194.000 
t£l53m.) on sales marginally 
down at IlBlam. i£1615m.) and 
aerospace near breakeven at 
£32.000 i£I.ii6m.) on S3les 1.7m. 
down at £13.6ni. 

Marine activities improved to 
f 438.000 f £333,000 1 on turnover of 
17.25m. \£6.7m.) and other indus- 
tries, including results of trading 
units in the industrial, medical, 
tubing and building supplies, 
hydraulics and air moving 
advanced to £2.5m. i£2.0lm.) on 
turnover of £l8.65m. (£l6.9m.). 

On the distributive side trailing 
profit was ahead to £3£Siu. 
(£3.57m.) on £3fi.C3m. f£32.55m.) 
sales and overseas slipped to 
It.ttm. (£lj2Gm.l on £24.9m. 
(flSlm.) sales. Internal sales 
amounted to £2. 3m. (£155m.l. 

The net interim dividend is 
raised to 32S33p C2.9SC0p> per 
50p share. Last year a final of 
41603p was paid from record 
profit of £20.51 m. 

Surgical Equipment Supplies, a 
manufacturer of autoclaves and 
other medical equipment, was 
acquired in August 1977. In 
March. 107S. the company 
acquired Haro we Systems lnc„ a 
U.S. manufacturer or aviation 
instruments, which will further 
strengthen its position as sup- 
pliers to U.S. aircraft constructors 
and. operators. Teehniscb Bureau 
M. Wei per man BV in Holland was 
also acquired in March 

Half-year Year 

stock appreciation relief and oom- 
parative figures have been 

• comment 

Smiths had warned that industrial 
disruption would mean lower 
first half <suits. In the event, 
trading profits are down by 18 
per cent and margins are more 
than two points off at 75 per cent 
The main impact of the British 
Ley land and Lucas strikes fell on 
the vehicle manufacture and 
aerospace divisions where profits 
slumped by 85 per cent, and 95 
per cent respectively. -Also, cur- 
rency fluctuations knocked about 
a tenth off profits from the over- 
seas subsidiaries. But elsewhere. 
Smiths showed steady growth. 
Buoyant sales of vehicle replace- 
ment parts boosted the 
distributive division while marine 
interests i radar, etc.) medical and 
hydraulics activities also contri- 
buted. If industrial disruption is 
minimised in the second half then 
around £20m. Is possible for the 
full year. Drawing a line through 
the interim tax charge the pros- 
pective p-e, at 13ap, is 4.9 while 
the yield of eight per cent, is 
covered 3.S times. 




Good start 
at W. & E. 








....... 113.000 








l 152 

Pro-tax Profit 








Net profit 








Rxtrvord. debus ... — 






Dividend* ... 




... 3J3S 



The net 

interest charged 


higher at 



mainly because of lower rates 
received on U.K. cash deposits. 
Tax provisions have been reduced 
by deferments related to allow- 
ances on capital spending and 

The level of trading has so far, 
been buoyant at IV. and E. Turner, 
say the directors, who tell 
members in their annual state- 
ment that with the most modern 
shoe chain in Britain the com- 
pany will be able to take full 
advantage of any increase in con- 
sumer demand. 

As reported on March 22. tax- 
able profit advanced from £651,977 
to a record £953,711 for 1977, on 
gross turnover of £10.Q2m. 


On a CCA basis, pre-tax profit 
‘(QOOoOfS) 000*1297 «H paonpai £f 
after additional depreciation of 
£180,000 (£126.000), cost of sales 
£307.000 (£240.000) less a gearing 
allowance of £154,000 (£1 16,000). 

During the past five years over 
£lm. of profits has been invested 
in modernisation and the policy 
of opening branches with large 
potential turnovers has been con- 
tinued. the directors * report. 
During 1977. the company opened 
new branches In the New Bond 
Street Centre at Leeds, in the 
Lion Yard Development in Cam- 
bridge and also in Blackpool 

DESPITE A marginal fall in turn- 
over from £24.52m. to £2451m^ 
pre : tax profits of the Camrex 
(Holdings) group of paint manu- 
facturers. corrosion engineers, 
and contractors, advanced from 
£1.76m. to a record £1.9Gm. in 
1977 with £1.1 6m.. against £1.05m.. 
coming in the first half. 

Full-year earnings arc showD to 
be up from 10.36p to 11.51p per 
20p share on capital increased by 
last September’s one-for-four 
rights issue. With Treasury per- 
mission the final dividend is 2.32p 
net for a 3.96p (354p) totaL 

1977 1076 

rpoo moo 

Tnrrover 24.200 24.322 

PruBl SjKS 2.728 

n '.-predation G53 S56 

Exceptional debit — 1M 

Profit before Lax 1.860 1.714 

Tax AM 591 

»t profit 879 ssi 

To minorities 4 -<9 

Extra-nrd. loss* 120 — 

Available 84« 624 

Dividends •“■49 249 

Retained 487 383 

t- Due to closure of French subsidiary- 
Mr. A. G. Cameron, the chair- 
man, says that trading conditions 
throughout the world, particularly 
in the marine Industry, are far 
from easy, nowever. the com- 
pany remains confident that 
further progress will be achieved. 

New German 
offshoot for 
R. A. Lister 

R. A. Lister and Co„ of Dursley, 
Gloucestershire. a Hawker 
Siddeley company, has established 
a wholly-owned subsidiary. Lister 
Diesel GmbH in the Federal 
Republic of Germany, which will 
be responsible for marketing the 
range of Lister air and water 
cooled diesel engines up to 186 
bKW (250 bbp) for industrial and 
marine applications and also ac 
generating sets from 2.75 kVA to 
175 kVA. The new premises Will 
also provide a centre for the 
Lister parts and after sales 

New premises have been 
acquired to bouse the new com-. 

XS.DDm .to £13.601, pre-tax profit of 
G. W. Sparrow and Suns, crane 
hire group, advanced from £1.3 lm. 
to a peak £L4Sm. in 1977. At half- 
way. profit was £39,060 higher at 

• Directors say 1977 was a difficult 
trading year especially in the 
U Jv. and U.S. There was less work 
available and crane hire rates 
failed to reflect both the inflation 
induced cost rises and the sub- 
stantial increases in the prices of 
new 'cranes. 

The current trading conditions 
suggest 1978 will he a difficult 
year. It has begun slowly and busi- 
ness has been hampered by 
exceptionally wet weather. 

But enquiries and orders for the 
second half of the year and 
through into 1979 are now build- 
ing up at an encouraging rate. 

In Saudi Arabia, the company 
has completed the first Year’s cun- 
tract to the satisfaction of its 
customers and has achieved the 
forecast profit. The company has 
been awarded a turther year's 
contract, a rain tovoiwng the use 
the crawler cranes for Lbe off- 
loading of 'cement This com- 
menced in November 1977, is 
worth approximately Xlm.. and is 
proceeding well, directors say. 

The company has also ordered 
a 1,000 ton GotVwald. iorry- 
mounted crane for delivery in 
mid 1979. at a cost of some £2m. 

The record result could not 
have been achieved without the 
substantial mvesament in cranes 
made during the past -few years 
and good profits from the Middle 
East, they add. 

After tax of £207j000 (£5S.OOO), 
net proGt was £L27m. f£1.25m.), 
and earnings per share are shown 
at l£34p agaLgst 11.64p after 
adjustment for the three-for-two 

scrip issue. 

The final dividend of !Ji3p takes 
the total for the year to 2J32p 
net per 20p share compared with 
an adjusted l-92Sp last time. 
Dividends absorb £132,000 

$13 -5 m. of additional equity in the £198-34m_ (£L45k64m.)- 

American company, and three Meeting, 10, Cheapside, E:&i on 
institutions subscribed 510.5m. May 3, at 12.15 pan.. 

of 0fl8S6p. 

BP’s Sardinia protein 
plant to be closed 

TUmover - 

- * •> 


Trading profit 



Interest charges — 


Preflt before taoc ..... 

-.e ' 


Tnx - 


Net profit 



To. mlBOrrtiea 


Lekvt&g - 



-Brtataed — — 

— •• 

. .1.639 


.The directors say that- although 
the results are good due to the 

British Petroleum has decided The decision to liquidate 'Itat- ^^gufeering products trading T/VflTT ^ 

to close down its £40m. joint proteine is dearly a serious- blow tSen^dS -*-V UJU Wfc ■ 

prOtein-from-oli investment -in to BPs protein investment Plans -pressure ’ "■* 

Sardinia.' and a major setback for this tech- Only by improved efficiency has.' -| ,VATI IDPAlC 

A joint statement with ANIC, nology m Western Europe. the m*oin> managed to show 7 some JL-/ f-.VIJUL JULLVVlO 

a subsidiary of ENT, the Italian No decision has been made yet- snail improvement in the second e* 

state oil company, said yesterday on BPs next move. A. liquidator baH but nevertheless xoargxn& TArDAnCT - 
that the two companies were stiff have to be appointed and the drooped by 1 per cent overall . lUI CL4iJl 
liquidating their joint company, future of the factory will than be ABovdng for the fact that there „ 

Ital proteine. in bis hands. - vrere more working days: in the AS FORECAST in defenre of the 

In the continued absence of any One possibility is that ANIC first six months than in Itb© subsequently unsuccessful bid 
decision by the Italian authori* might make a. bid for the plant, second half, the -growths m. ttim*- Petroleum, pre-tax 

ties to restore permission to Another is that it could. ;be ^is-. over dedJned "■ 'T.'VTv.'j:-. “ . profits of Lyon and Lyon reached 


ties to restore permission to Another is that it could. ;be ^lis-. over declined "• . V/ ’..'a:. profits of Ly<m and Lyon. reached 

operate the high-technology plant mantled and relocated -elsewhere -The diversity of the group's a new record in 1977 with £633^28 
and sell the product— Topnna— in the Common Market where per- engineering interests has enabled compared with - £824,424 on turn- 
without restriction the companies mission has already been 'many years .of over of fg.lZm. against fR2ta. 

were not prepared to bear the obtained. growth, whereas specialised com- " Af ter tax, on the -ED 19 basis of 

£10m. maintenance- costs, the B psaid that although nopolicy panies have found it more difficult fflUM- restated) earn- 

statement said- ... had been decided upon, there was to weather the- recent -years of higs are shown -to be ahead from 

The plant, which has bemi in possibility of similar > joint recession. Certain divisions are- to 12-Bp- per 25p share and 
mothballs since June, 19 <6, is ventures in other' countries. In- quietly optimistic for 1978 mem- as promised the dividend total is 
designed to produce 100,006 1 tonnes terest had come from JRussia, bers are told but in 'the present hoisted from !L26p to 6p net with 
a year of anunaJ feed substitute Arabia and Venezuela, : economic effmate it is (fiffiradt to’ a final of SSp. - 

for calves, poultry and pigs. Pro- . There was no intention of aban- forecast the likely profits for In September, reporting first 
auction had bMn halted because doning the technology, m spite- of those divisions whose products half profits up.' from £193^66 to 
the Italian • authorities suspended the substantia] write-offs that will are sold -- on a short delivery £339,642, the directors .'confirmed 
a 1972 decree allowing production have to be incurred, he added.' period. - tbeir forecast, of increased full 

^d sale of Topnna. ... — — *’’ r • Nevertheless the. group, is ."well year profits and said a programme 

The Italians have been reluctant ' — . " equipped to . take advantage of was -being pursued .to develop 

to give the go- ahead because i of ■ - . - -- » any improvement in trading, con- simultaneously the vehicle dlstri- 

health fears, but BP and ANIC 4- 1 tn CQUOC i/\hc ditions and \vfll strive to estraer ‘ 

have insisted that Toprina has 
been proved, non-toxic and com- 
pletely safe. . In December last 
year they threatened to close the 

Turnover ’ — • 

Ovt-nk-as ...... 


Tradlnc profit 

Derations ;■ 

Disposal fixed assets 


ilovenuncnt trams ..." 

Interest Chartres 

L'lnn stock interest .... 

Pr*» before tax .; 


Net profit 

Prior rear adjustment, 




* Debit. 

« an additional A* 225nLt-‘i-id'.aif ■&SJ£ J ZLsrx 

Sf by which bor e ,he bmhtnf OS9J9Q to 

political crisis of nrore tfran 150 teachers and 

But now. in the words of a BP road crossing patrote, who faced 
spokesman: “It's the end of the redundancy because of cuts in 
line."-. . .. education spending. ^ . "a 



YEAR 1977 

British Leyland term? 



British Leyland has entered Council is. raising £}m. and 
into an agreement • with the Borough of Milton Keynes is 
National Enterprise Board under raising £itn. 
which the NEB has underwritten. The Borough of Epsom and 
Free of charge, a rights issue of Ewell is raising £{m. of 11? per 
89S.«S.620 Ordinary shares of 50p Bonds dated April I, 198S at 
each in Leyland at par. This is par 

subject to the passing at the EGM Five-year variable rate bonds 
convened for April 14, of tho dated April 6, 1983 and carrying 
resolution increasing the author- a j 0 f a point margin over LIBOR 
ised share capital from £150m- to are i^ued by Kibble Valley 
£65Dm. ... . _ Borough Coundl (£im.) and 

The new shares will be offered London Borough of Harrow 
by. way- of rights to Ordinary 
Shareholders and holders of the ' . U 

71 per cenL Convertible Un- 

Secured Loan Stock 1982/87 ol 

British Leyland Motor Corpora- *7.S‘ 

lion registered at the close of 

business on April 11. The issue is , . - 

on the following bases: 17 new 

shares for ever}’ five shares and -w- -w et 

17 new shares for every £27.50 I ,-a-M 

nominal of the convertible stock. ■ ■ ■■■■■{ 

The new shares will be offered JL ■ ■ ■ 

at the minimum issue price per- 
mitted by law of 50p each, pay- T,1 -i 

able in two instalments: 30p per li 

share on application, and 20p per ■ 1% . |% ^ ' 

share by September 28. JL Ji M J 

Application will be made to the 
Stock Exchange for the new 
shares to be admitted to the 
Official List It is intended .to post 

a circular giving details of abe M HKS314J2 million af 

ri6 C“ *E*S? 2 ^d co»- HKS30I.5 million in W 

vertible holders who wish to extraordinary items, wtu 

acquire further shares are likely million, 

to be able to buy them in the 

market at materially loss than a Earnings per stock ui 

aOp per share, the Directors w ^ 

would not expect- or recommend. m niviiierir!< rnkeri Fir 

them to subscribe for any of the • uiviaenosiaiseo. 

new shares, and the Directors recommended, making a 

themselves do not intend to do 6.3 


—Net new premiums tor t 977— 38% greawnhan t976.The toKU premium 
imxroes8£2atriilBmT : i5>2l% : -- ' '. 


i —new declared compound bonus rale is4.60t« par annum and puts us 
tnrty Inlo (tie rainte of the taring wah pnfitt rificea— 

- Oo the aimple bonus series the new dodarad rale « 0^0% per annum— 

— *ene«dBciarad bonus rales for anmJty and pension policies areS£6% 
.. parannun in the couipo a idbonugserias and 7.50% per annum in Bw 
■AHnpfe bonus series. 


— Record ricreasa ip the fund during 1977— total invasted assets a record 
-£221 ih9oq. '" ' 


— new premium inoome increased by 34% owl 976 and renewal premium 

income Up by 12%. . 

—Future rnmook— quke promising. Good employers continue toappreoai* 
the vaiue of a sound insured person scheme. 


-w^rdflBTwurts'ofuawbusifieas, giving usasubstantelly larger of 

: the maitei. • 

0 HKS314J2 million after tax earnings For 1977. compared with - 
HK.S30I.5 million in 1976. an increase of 4.2%. Earnings are before 
extraordinary items, which amounted to a net deduction of H IC$6i) 

0 Earnings per stock unit up 2.7 from HKSI JL.' ••-- 

0 Dividends raised. Final dividend of. HKS0.48 per -stock unit- ■ - 
recommended, making a total of HKS0.67 for the year^an increase or - :- 
6.3“ • 

Yearlings up 
to 8i% 

0 HKS200 million raised in June 1977 through issue phi-% Ui*$ecWe4 v 
Guaranteed Bonds 19S5. Liquidity remains satisfactory; term borrowing 
reduced. ‘ : .,'J- .- 

through JIW Computon 

The unique JLW computon system links 
the speed of the computer to the needs 
of commerce- whether accommodation 
is required in The City, west End, 

Suburbs or Provinces. 

A thorough and on-going service is . 
offered, handled in a highly professional 
and confidential manner. 

Commercial Property Agency is aided 
fay JIW COMPUTON. A brochure 
outlining all JLW COMPUTON services 
is available on request from: 

west End, suburban and provincial Agencies: 
103 Mount Street, London W1Y 6A5. 

City Agency: 

33 King street, London EC2V8EE. 

The coupon rate on this week's 
batch of local authority yearling 
bonds has risen from 8i to 84 
per cent. The bonds are again 
issued at par and due on April IS. 

This week's issues are: — City of 
Liverpool (£2ira.). Warrington 
Borough Council (£im.>. Borough 
of Eastleigh (£{m.), Alnwick 
Borough Council (£>.), Rox- 
borough District Council (fim.). 
Staffordshire Couniy Council 
(£im.), Allerdale District Council 
(£{nL), Medina Borough Council 
ResTonnel Borough 

Council ffim.L City of Salford 
i£im.). Gravesham Borough 
Council (£:m.). Cumbernauld and 
Kilsyth District Council 
City of Cardiff (£2ra.), Borough 
oF Cynon Valley Nuneaton, 

Borough Council f£jm.). 

Two-year bonds carrying a 
coupon of 9J per cenL and dated 
April 9. 1980 at par are issued by 
South Northamptonshire. District 
Council dim.), City of Exeter 

Vale of White Horse District 
Council is raising £Jm. of 104 per 
cent, bonds dated April S, 1981 at 
jar, also West Lancashire District 

0 Hong Kong, the headofficeand main operating performed well 

and contributed 57 " Q of overall earnings. . " v;. 

0 M iddie East investment In ficbtfull year contributed 6% of 1977 

0 Improvement anticipated in i97S from tliree quoted subsidiaries^- • 
Jardine Industries Ltd. Jardinei)avies Inc, and Rennies Consolidated 

Holdings Ltd, after disappointing 1977. 

0 increased Group pro fit anddividends expected in 1978. 

D. K. Newbigging Chairman 
lllh April,l 978 


-. ' ■ Lyon'aud Lyou 85 • . 'May 12 U3 fr -2JJ8 

TTLTTA TT^ .t^^. — ^ , ' . - - ■ •. - KTO .l....... -6 .. 482 95 s 

INDUSTRY^ . DEMAND for new One of three, Equitable Ufa Senior Engineering ... 05B - June 2 0.52 U.7 LOS 

capital R® j0 , w AOTrance, has also agreed .to an Smiths Industries int- S 59 . June 12 SL99 — 725 

level in 1978 and this is likely to midaMiten. loan (1992-96), which, (L W Sparrow L29 2.15 nix 

Dividends shown pence per share net except where otherwise stated, 
.traditional banking and concrete a .further $l0m. to be drawn *Eauivfc]ent after avowing far. scrip Issue, t On eaniiS 
finance bus mess of Sriirodeps, *nyn before 1982. The' other two . Sricreasedby rights and/or ^acqmlition iisuea cap«*l 

the Earl of Airlie, tbe chairman. Institutions have agreed to yaw ^ - - 

says in his annual statement for'more tha nten years; ■■ .. • - -. - " • 

He says indications are that the The losses of Property Holdings ; V ; ' . 

current-year will see a relatively International continued in 1977, : ‘ C 1 rJ/vvwrn 

low growth in the major econo- although at a reduced fate. The,:' ^Af|lO* t* ,I|U ‘ ' \|||WC 
mies an dm world trade,. and losses- were reflected In tbe LJ VJXAvffX . ulV f f J 

says that while inflation and fffSTm. fL28m.) shareof associate >r.' 

currency fluctuations will b® company -losses which reduced- - ■* 

unsettling factore, the most pre4te profit. to £3An. (£ 22 lnL>. ; « L«li? ' 

worrying aspect is the growing In lfffir; investment realisaticme • 111 C Tl Q IT 
threat of a retreat into damaging continued but increased operating - .111 tJV'VvfULL ' ll CL 1 1 ' 
protectiomst policies by leading and financial costs and the ' 

^Fol^riiig^the^increase in the Srta^SvitmMte^more^ffiS Jor * 197 rnm conditions, left 

capital of its American subsidiary, offset some profitable sales. Any Senior Engineering f efaui y, ^^neering with an 

Lord Airiie says the U.S. opera- loss the. current year u poxided from £41-97m. to SSLBSm. tm&x pi lng ^is. per. cent rise in 

tion is now in a position to sub- expected to be materially lower/ -■ ‘mzZS -22 ^ of 

stantially expand its commercial At the December 31 balance': OJ mo^: - peeqe 34 per cent, .Despite the encour- 

b an king business. For 1977 U.S. date, deposits and other accounts. P^P 119 -F 105 agmg ^noises ' made about its 

profits only rose moderately as Including Inner reserves -and tax 411 the £SE °™? r end-1076, its light 

costs, including those of the provlions.- totalled- £943Am. year^ attnbutaole protitB engineering and steel tube divi- 

capital expansion, increased off- (JESOOfflm.). while Joans, advances ah® 8 ? from £2J23m. to soils appear to have met low 

setting the material rise in and other 1 accounts were £505L9 zzl nid as pronnsefl ^ th e demand lor, its products through- 

revenues. (£43&5m.), and loans to stare and divi dead total is lifted from out the world on top of the 

Schroders subscribed for local authorities and banks LOflto to 1.1671p’net with a final continuing recession- in the UJt. 

. ■ Trading margins came under 
pressure throughout the year and 
43^5 were down by one point to lOff 
,iji7 per cent: However, the group's 

no diversified interests may prove to 
be its key to future growth should 
r™* demand for " its engineering 
8 products pick up from the present 
2 ssr depressed situation: .The shares 
tt« at 22 Id yield 8.2 per cent covered 
2.9 times and the p/e is 6.4. 

Krofl H 


- -': Nevertheless the. group is .well year profits and said a programme 

' — equipped to . take advantage ,q£ u.-ac -being pursued .to develop 

ft * ■ * any improvement in trading, con- simnltaneotisiy the vehicle dlstri- 

f Jin. saves ions «titions and. wCl strive to extracr butkm. ‘ road ' transport, ■ ship 
. w J”."- the maximum benefit out of the repairing and ship components of 

ff j. x ‘ present depressed situation. ■ the group. 

IOT tOSCUBrS ■ : - After extraordinary charges of 

« '• -T #00111016111 ■ •• £49,401 (£SL348) the luff year 

LN ADDITIONAL film.- outlay a somewhat fiat second half, attributable balance rose from 

• -Ts 

* T 


. Earnings after lax- 
Earnings perstock unit - 
Dividends per stock unit 
Stockholders’ fluids 

: 1976 


3 QL 5 nt 
1.4*7 ; 
2 , 088 m 

1977 ; 
- HK$ 
314 . 2 m 
LSI ■ 
2 , 249 m- 



- 35.4m 
, I7p 
. 7;6p 


r vW * ; 

fan. MJar- 

,««n* 4Bi 


Chartered Surveyors 



SI Cornhill EC3 1FO 

Gilt Edged Portfolio Mnscemait 
Service Index 1M.7I 
Portfolio' I Income Offer 86. 7* 

6W 36 JO 

Portfolio II Cerftal Offer 135.33 

BW 136,5a 

- - * j. ..... -■ - ■ •us- ..M. am amjhIw' )6rr. 

Jardine, Matheson A Co, Ltd, ConOTOS&tCxMm, Hw^ Kong 

• r — --rr" — ».-* t- 

Financial Times Wednesday April 12 1978 . 


Moving into the big time 



S v (% 



broker Asflk B. Hail is -successful 
w»Ue aaa Godwin will be znovtae 
ih&% company _ Hall i s .tfc*: 
tomi largest -quoted broker in tbe 
us * Cnumbec four if- the private 
company Johnson and Higgins is 
: l ak ^ w ^ 0 -' account)- in -a league 
h ® 3 ded by Man* and McLennan 
and Alexander and Alexander* 

3977 w -ere 

5U9m.. which represented af naar 
& per cent, increase on t he pre- 

Profits were 
¥ 38 ; 4 m., compared with *»>-W 
fl™*?. ^mincs ‘Dior -shared? 
around 82, as against { 1 - 63 — a 
marked - Contrast to- the uhinspir--- 
ing figures announced yesterday 
■by /Leslie. Profits for 1977 are 

only marginally higher at X4_13 hl 

the absence! of- 
substantial non-recurring lasses is 

tbs; previous year's figures. *- ‘ 
An important reason for Lesbe’s 

- pedestrian record, at a Ume W hen 
-other, insurance brokers have been 
.expanding rapidly making the sec- 
\9f. the most glamorous in 

the City, has been its lack of U.S. 

U.SJmks v 

■ in. recent years tis!. liriks! have 
been - particularly important. 
Shortage of local capacity ' has 
sent an -increasing proportion of 
liJS, business to London, and - the 
benefits in storting-, terms have 
beep - ... substantially inflated by 
currency movements. 

But Leslie has. been unable to 
establish any sort of significant 
presence. Hie group has no- direct 
. involvement in North America, 
and its rather limited network of 
. correspondent relationships was 
hit badly * by the failure of one of 
its : principal sources of US. 
domestic business, Pritchard arid 
Baird Inc., with which the group 


had an. eachisive arrangement to 
handle non-marine re-insurance. 
Pritchard's bankruptcy left a big 
-dent hi tadJeVlSTC figures— it 
required a . pMAai" ' provision of 
£86$ 000 ■ 

did not rQuesent the com- 
plete closure -of Leslie's U.S. 
business. ' The group has con- 
tinued, to deal with many of the 
leading thS. . direct - insurance 
brokers, shch; as. the Despard 
Internationat subsidiary of Fred 
S. James in marine classes. 

More successful 

- But- ot&er : UR brokers have 
been- much mwe successful in the 
US. C.T. Bowring, for instance* 
has trading : - relationships with 
several, of the major U.S. insur- 
ance broking groups- Jt has also 
purchased -a fifth, share In Victor 
0. Schinnerer, a . subsidiary of 
Marsh and McLennan and a pro- 
fessional Indemnity specialist. 

Sedgwick Forbes, which prob- 
ably bandies ' more -direct insur- 
ance business from the- US. than 
any other broker, was ctea led by 
the merger of .Sadgvrick Collins 
and. Price Forbes :in 1972. . After 
tins ..merger the group had Imks 
with all the - maJes-UjS. - brokers. 
Willis Faber, ^another leading 
broker, enjoys a ■ Jong-standing 
relationship . with..- Johnson . and 
Higgins. which .pDD&uc&f atl the 
group’s direct marine and aviation 

business' in the -us.'.. 

Elsewhere, Mine t has taken a 
stoke oS 105 1 *r cent in t+ie 
ordinary share eagi-UX-'.of Fred S. 
James, the fifth; larges* Us. 
broker. James-, iii turn holds a 
31 a per cent, slake in Minot's 
uon UJv and non-North American 
broking' subsidiaries: 

- Most of the other .big brokers 
have equally close .links with 
North America, In fact if the Hafi 

bid for Leslie goes through, Hogg 
Robinson win be the 'only -major 
UJv. broker Jacking a’ substantial 
presence in the Us. 

For Leslies the takeover by 
Frank B. Hall would not only 
close a big gap in- its business, 
it would also allow -the- group to 
bring its internal controls up 
to date- quickly. An extensive 
overhaul of management systems 
has been taking place over the 
last IS months or so, but not yet 
. — it would seem — with much 
Impact - “The reorganisation 
hasn't been going too smoothly” 
-admitted the group yesterday, 
“and we've been rather slow on 
the computer game.” 

As a result the group's expenses 
have climbed faster than, its 
revenues over the last year. This 
is one of the main reasons for 
the dull 'profits, performance. 

Rothschild connection 

There has been a close 
Rothschild connection with Leslie 
for some years past— Mr. Jacobi 
Rothschild is the current chair-, 
man— and Rothschild Inve-mnem 
Trust's stratniric boldine in the 
Broun has often been touted bv 
speculators as a platform for a 
potential takeover bid. Indeed 
the ground image as a rather 
poor relation in a very lively 
wetftr has marie Leslie one of the 
Citv*s favourite bid stories for 
sn n ' B time. 

RTT currently holds 10.5 tier 
rent, of Leslie's enuitv. and win 
ha«e 2ft ner cent, of the new 
enmnanv wh"*h. it j« ntennetf, v*l| 
be established to make the h’ri. 

For Leslie and Godwin, wtr^h 
nttemnteri to m°rve wfth Sir 
James fioM-mfth's Wi«»ham Poland 
hack in 107R. a move to extend 
its markets, the search for size 
looks to be over. 

IMI plans to 
spend £22m. 

7 s“a“zvev 

Barrow Hepburn to develop 
non-leather interests 

THE DIRECTORS 9 f Barrow Hep- 
■ bnjtr Group Intend developing 
the -growth prospects of, its non- 
leather, .interests^ and'.a higher 
performance from these areas is 
expected in 1978, Professor Roland 
Smith, fbe ^chairman, says in his 
statement with accounts.. ’V 

. -! He says the revival of the 
chemical industry, a rise in con- 
sumer- spending and a good order 
book . for machinery .- provide a 
better outlook. “ 

The chemical division siruck 
the difficulties of' the- -French 
textile industry in- J977,-but ^ome 
recovery occurred, beginning last 
^utmnn- -This. b«s continued- into 
. the. current year:, with : the- divi- 
sion opening 1978 with resumed 
profit growth. - 

The company: has completed 3fs 
investment m new plant Mh 
Atlanta. Georgia, U.S.. and" the 
increased capacity is now being 

rr.u-' . 

~ The current order position" for 
the machinery and manufacturing 
division haS confirmed -Out"; dm-: 
sion’s strong position, he .says. 
New. capital . investment - for the 
rubber and plastic compounding 
companies will come on .stream 
this year -and . tbe W77 perform- 
ance of -its paper bags and cartons- 
subsidiary has justified further 
investment in its carton depart- 
ment. . ; i ■ 

On the merclianting and con-, 
sumer products side, Australasia - 
was ihe outstandiag 
last year, but since the year, end 
cooditlons 'm Australia "hayc‘. 'be- . 

come more difficult!- - light when Barrow decided to 

Tbe Chelsea Gobbler has con- substantially reduce Schr ader's 
tinned to progress -and BasU business, following tbe transfer 
Lamb is trading well. Satisfactory of tbe group's tanning interests 
expansion Is bcitijt , achieved by to a joint venture company, 


M'Homl -Cntnprtw Bojni 

-vision for likely losses from s , TVi ironnnfs -hmv the Bvrow 
non - consolidated . subsidiary, h^rijnent in B.. at flm. of 
Schrader, Mllcheir and Weir, and wu ! tv , * P £J * *"»■ ? f T ~ 

a 21.9ml extraordinary. . write off cant^l ^'h ^.l^ due to BTP 
nu assets transferredto British an ? n frorn 3rrp - 
Tanners Products. ! - w . pFr as 1be f T .« T n. «- , **M3ff. 

bvi- r^n- ""ntributed a 

Directors now. believe that the i owt „f ft 02 m 

losses from Schrader, will be Tiv.^g t h- vr a r there «~c a 
“very substa dually treater." than riPcre^^ 

the pjfovistoir 10 tbe.accounip, and in group working 

m \new. of -.the; uncertainty, do canifal - 
not -consider Jt: -appropriate to 

SPENDING ON fixed assets by 
Imperial Metal Industries, tbe 
metal refining, fabricating and 
slide fasteners group, was 
expected to increase from £15 m. 
last year to £22m. in 197S, Sir 
Michael Claptaam, the chairman, 
told the annual meeting. 

.About IlUra. would be spent in 
the ILK., “ but we are. determined 
to invest overseas when suitable 
opportunities occur.” both to 
provide export pull for BID'S UJv. 
companies and to reduce group 
dependence on the UJv. economy. 
Group policy was* to invest in 
product areas where there was 
synergy with present operations. 
Sir Michael added. 

"The new products we intend 
to make will generally have a 
hieher added value than those of 
our original copper semis 
business, like fluid power and 
drink riisnensine for example,” 
th n chairman said. 

But very large investment 
would need to be made in EMU's 
traditional areas, too, both to 
ke»»D up with new develonmepts 

and to remain conmethive in 
horn* and exiwrt markets. 

With still no general increase 
in demand so far in 197* from 
♦he industries served bv jmi. Si' 1 * 
Mirhaef said he could not nredfet 
ernup nrofoects for the current 
W’" with anv accuracy. 

For the UJv. manufacturing 
indurtrv as a whole he nradinnil 
vnnth^r vear of low growth. w, it 
he remained confident of TUfTs 
ah”Hv to inrrease turnover and 

n^nfits. civan a favourable 
economic and Industrial 

The rhairmsn sa«d Britain's 
curopnr rate nf inflation Was S*W1 
w*t| above that of most of hs 
malnr romnetitors. whi**h 
«»o+ricted ability to invest for’ the, 

“Itnftwmnatelv. most econn- 
mlsfs foTM^n that the rpfe will 

inora-ica pnqlq totny- jn lhn vpor** 
s*r M'phup] tntd the jnePtine. “AVo 

'll strive to prove them 

A hordeen 
Harbour ahead 
to £I.37m. 

From tftlal operating revenue 
of £4JSin. against £3.37m, the pre- 
tax surplus of Aberdeen Barbour 
Board climbed £1.04m. to 21.37m. 
! n 1077. 

board meetings 

; The fuUv/H-nui cnmpaiUcs have notlQed 
dang of Board meeiinss to the Stock 
BscbaDgc. Suiii meeutiea are usually 
held for Ine putdom? nf omslderlns dlrv- 
deuds. Ofilciai mdicaiiuns are not avalV 
aftle' whether dividends concerned arc 
Interims or finals and the smbdlvtsions 
shown below ar- tuued m ainly pg Jubi 

year’s UmetaUe. 

Tft-OAY - 

Hum ms— Ferry Pickering. Kalamazoo, 
Siartrile Ennlneerlns. 

Flute— Amalgamated Metal Corpora-' 
linn. Babcunk snd Wilcox. Henry Bout. 
Carpets IniernauunaL Chrteues Inter- 
mulonal. Danish Bacon. Eagle Star. 
Empire Stores ■ Bradford). John Fin] an. 
E. Fogarty. Glymvcd. CiurxUan Royal 
Exchanxe. Oil Explurailon. RhodMian 
Corpor>tl»n. Riclurdsans Wcsuarth. 
{Utwan and Boden. William Slodall, 

TiUemacfle and c-ibbutd Breweries. 
Uilront Breeden. Arthur wood. 



Britiah Car Vueoou Apr. 13 

British Empire Seainii-s and 

Ceoeral Trust Apr. 14 

Unread Apr. ?3 

Marley May So 

Samuel Pmperties Apr. 13 

Spencer Rears Apr. 36 

Vattx Breweries May 111 


.\rmhaae BroUier- Apr. 14 

CUT Hotel* Apr. 

Curry* Apr. 17 

Derttend Sianipint May if 

Flrmlo - Apr. 14 

General 1nve<v-rs and Tnreiees . Apr. 13 

Helene of (.endon Apr. 18 

Hovertnslwoi Apr. 17 

Matthews wrialns*<n Apr. 14 

Mdvllle Dunda^ and Whitsun ... Apr. M 

Owen Own Apr. 20 

Scottish MM-iKapi- and Tmsl - Apt. 20 

Securities Tniv r<f Scotland .....Apr. 18 
Wight Cnnvtrueiinn Apr- 58 

The operating surplus of 21.81m. 
(£1.6Bm.i was after a proeramme 
of excentinnui major maintenance 
and drerisbig amounting to 
10 87m. <£fl.3m.). 

After all charges, the surplus 
retained for investment wi’h'n 
the port amounleti to LM9.5RR 
compared with £399,977 in the 
previous year. 

In his review, Mr. R. J. C. 
Flcmlnc. lh*» chairman savs 
capital expenditure, less disposals, 
during the year amounted to 
21.29m.. but that the majoi 
irmrierrusaticn programme em- 
barked on six years ago is now 
past its peak and that, because 
of capital debt repayments, 
interest charges are faljing. 

North Sea oil activity has re- 
mained at a high level and 
revenue to the port from this 
source again increased. In 1977 
the number of supply vessel 
arrivals reached . a new record 
level of 4.189, representing 
32S4.Rr,7 srrnss registered tons. 

Summary of t+»e r<*vuits for rh»- ended 3Kt January 1978 



Net assets attributable to 
Net asset value per share 
Reven ue available for 

onlinaiy shareholders . 

Earnings per ordinary share ' 
Earnings per ordinary share 
assuming fuH conversion 
- of B ordinary shares 
Dividends per ordinary share 
Capitalisation issue 
(B ordinary shares) 

£43.7m £39.1m 

52.9p 47 3p 

£1,119,793 £876,178 

M1?P 1.136p 





3.86640% 3.56496% 


The directors recommend chat a final dividend although there has been some reaction from ' 
of 0.85p per share be paid on the ordinary the hl^i points reached in the autumn of 1977. 

shares, making a total for the year . of 1 35p per The directors consider it appropriate at present 
share. This total dividend compares with a to maintain about 25 to 30 per rent of the 
forecast of not less than 1.20p indicated in the United Kingdom portfolio in cash and short- 
interim statement last August, and represents dated gilts. 

an increase of 22.7 per cent over fast year’s In the United States, despite apparently sound 

an increase of 22.7 per cent over fast year’s 
dividend of 1.1 Op. 


In the United Kingdom there have been a relation to ass ets , e 

number of favourable developments since the ^ their policy to rrv 
financial crisis of October 1 976. Both gilt- position, 
edged securities and equities moved ahead, 


In the United States, despite apparently sound 
fundamental forces in the economy, confidence 
has continued to languish. The directors believe 
that common stoclts are now very cheap in 
relation to assets, earnings and dividends, and It 
is their policy to maintain a fully-invested 

United Kingdom 1 
U.SA. & Canada 
Japan & Far East 

South America 
Fixed Interest 

Cash and .short term deposits 





















Copies of the report and accounts may be obtained from the managers and secretaries, 
Edinburgh Fund Managers Ltd., at 4 Melville Crescent, Edinburgh tH3 7JB where the 
annual general meeting will be held on Tuesday, 9th May 1978, at12.15 pjm. 

* v- .* > 

V • s . ' * 

... •' " . ' ■ • - ' ' • 

incr&tse. the-- provision. . ; 

• Because of - tifls uncertainty. JVFW fTi^TIT 
auditors Mann Judd say tbey have 

been . unnble to. form an opinion . PDApCRTV FITTVm 
*s ; : to, whether tbe . aocsmnis «h e 1 1 

a true_and fair.viov oftherifairs The ne?rt of un ? rs in th P 

' A ’ . N**w CdptI Property Fund wUl 
..._ DW«Wors ws^hflt afier Thy,' ‘■4ak e -Dlare -during • the period- up 
provision. (294a,(KM) arnsa) . the ^ Aoril is. 197S. The offer price 
bdtaee .af-jCbe subndiap s ne v ^, 12VBn vd per un;!> pro . 

IwlhS w?. riw hflfl° UP a * , ' Jrtinjr «* estiniated gross yield of 
: DeNQOrr Slvus IlSBjWn. 3 per cent • 

An. mvestiqartion is, under way ** . . 

-bv SBceuntants WTtihney Murray Dunns- the course of the past 
into tbe irreffiiJarities ^ the ’2 months the offer pnee of unite 
finances of .a^n^der. which have has risen from lCB.Sp to 121.6p 
occurred in cDt^cctinn with th*. exclusive of income, and in addi- 
comnanv's - Suppliers and Don there will be a distribution 
eu^omers. -amounting to some 6p gross per 

- Directors '.Have been advised un ! t in respect of the year, 
that, tiie irregularities may Involve The total value of the Fund 
.froutL" ■'nie.'irrcguiarjties came" to bas risen from 213m. to 223m 


' • v, ' , t ‘ . . . - - V: v 

‘ ... 



I VI I • 

1 vv.-vv 5 *" 


r ,.V. • •'C '‘a'' 

Mr Andrew Breach, C.BJEL, ’• 
Chainnan of Bristol &^est 
Buildii'ig Society, reports a year 
of notable achie\''ernent in his 
address to members on 
April 11th 1978. 

For the first time the Society’s 
growth rate exceeded 30 per cent. 
Total assets grew by £132 million to 
£569 miHion-again the h^iesc 
percentage growth inthe top 
twenty societies. , 

For the first time the inflow 
of investors’ funds exceeded £200 
milliori- Gross receipts were £289 rnillion and, 
afer deducting withdrawals, the net inflow was 
mi millio n -twice the previous year’s figure. 

For the first time advances exceeded £100 million in 

theyeac _ .. ■ • . 

TbeSociety also finishedtiieyearwitii- 
...exceptional liquidity, with cash and investments 
totalling £178 tnillion, and bvsuIsI Jf a.t ver y short nonce. 

„.a reserve ratio of 3.95% of total assets. 

... and more thatt l00 branches, wirii 12 new offices 
opened dinangdie year; and a farther dozen planned for 1978. 


©QDDiys3QG0@ ©®©D@0V 



lie Bristol & BfdUmgi BiomQw. b - 
&istolBS99 7AX.T&$hjone: 0272 2^2 7L 

Where EE’s keep fighting fit 



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■ - !-* 


- ; - : 


Minorco takes ZCI under its wing I mining news 

MINORCO, the Bermuda- Minorco will Joan oa current Thereafter the proportions change 
reristered investment arm of estimates SIS- 3 ®- (£lQ-3m-) to to 50 per cent/ of cash flow and 
Anglo American Corporation, is ZCL so that the latter will be able a 20 per cent, return, followed by 
Stepping in to fulfil the to meet its 19 1 per cent, share 25 per cent, of the cash flow, 
obligations of Zambia Copper of the scheme ^.restructuring j n addltIoilf ZC j tus undertaken 
Investments, its 49.9 per cent- the finances and market in,, not ] 0an funds, pay divi- 

owned associate, in the restruc- arrangements of Seiebi-Pikw’e that. dendi sen assets, make expendl- 
turing of Botswana RST, the were ture of more than $lm. or. enter 

holding company for the The facility JP } ' . m f t ^ re - n a . L,S anjr arrangement which would 
iU-starred Selebt-Pikwe nickel- end of 199 j and cany- an interest affftct itJ ability to meet Its 
copper venture In Botswana. rate or l.ia per cent, more than ob ^ CT} j on!< ro Minorco. 

This allows ZCI to fend off the the Barclays Undon interbank *55 these arrange- 

possibUity of seeking to sell off rate on as “ontte U.S/ dollar me ™ ^ l0 morTof a 

perhaps all its assets or face the deposits. ZCI will also pay ^ a associate of 

possibility of a capital reconstruc- Wnorco il»« ■ W Jg*™ Tfertor wS will, no 
tion consequent upon a rights guarantee cnmmis«aon. doubt be taken into account in 

issue. But Minorco vrIU have first Althouah ZCI wifi have to use ^gventofany firSerreorrani- 
cl) on ZC n ash revenue end nil its W tafn* funds Zglo l^^ 

will have to give its approval towards meeting the coats and s 

Rio Tinto-Zinc fights 
1977 to a draw 

tC « » i if ii Will (MOWUfltV v * 

Minorco, a factor which will, no KENNETH MARSTON, MINING EDITOR 

^JftnancisQ Times 'yTednesday- April 12 1978 


CDFC spends £2m. 
in Australian deals 

IT is reported that Common- £5. 93m.. representing 16.7 per 
wealth Development Finance cent of the total. 

Company owned by a consortium • • , „„ . 

of 160 UJe companies, banks and JOHNSON SHARES UP 
S® - financial instUntton* induding- DESPITE DENI A I 

come at a 
already in 

time when 
a serious 

when Z<5 fe ihe loan has been repald Mmorco the project been dosed dowp-at c _ X Z?"* ****>«" **"2**' with which JohS 

erlous finan- wil be eniitled to receive 73 per a total cost of SISSflm. (£100 -3m.) „ " 1 'f?H ’'Erf t0 ^^clpale an c^panies, and marks -ihe flat hag long trading links. However 

the weakness cent of any cash flow* Zq receives -or _ had Wm and ZQ not SSS^STJESSL ~ «»"*-■ °f 

Zambia and Rhodesia. 


To the Holders of 


(now Otis Elevator 'Company) 

8% % Guaranteed Debentures Due 1985 

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the Indenture dated as of May 1. 
1970 providing for the above Debenture*, said Debentures aggregating $3fl0QA09 principal amount 
bearing the following serial nnniher? have been selected for redemption on May 1, 1978 . l §1,500,000 
principal amount tlirough operation of the mandatory Sinking Fund and SL500.00Q principal amount 
through operation of the optional Sinking Fund), at the redemption price of lM0$o of the principal 
amount thereof, together with interest accrued and unpaid to said date:* 


M- 16 1177 2371 3543 4670 5350 7141 8312 0531 10694 11920 13197 14263 15413 10653 17829 19008 

18 1173 2381 3547 4881 5852 7143 8316 9SS3 10702 11927 1S20S 14280 15437 18863 17833 19010 

19 1191 2330 3548 4703 5656 7150 3344 9536 30704 11935 13219 14288 15439 16678 17834 19013 

29 1197 2359 3550 4706 5659 7160 8354 9537 10709 11940 13232 14290 15440 10880 17839 19028 

31 1200 2393 3560 4707 5861 7167 8371 9545 10711 11949 13235 14292 15444 18863 17842 19038 

37 1204 2337 3561 4708 3871 7171 8373 9551 10713 11930 13238 14300 15430 10885 17343 19045 

44 1212 2407 3569 4722 5889 7176 S3K2 9553 10719 11953 13237 14302 15457 17853 19047 

50 1214 2415 357 U 4732 5890 7193 8339 9555 10733 11059 1324U 14324 134«7 16890 17876 19Q50 

51 1222 2431 3598 4733 5M5 7195 83M 9564 10737 11993 13344 14325 154711 18697 17878 19062 

55 1228 2433 3800 4734 5008 7198 3394 9568 10747 12039 13247 14340 15483 10098 17081 19070 

63 1234 2434 3603 4752 5912 72U7 8411 9570 10748 1204 U 13248 14344 15493 16701 17894 19071 

03 1236 2437 3012 4762 5923 7215 8414 9017 10771 12048 13286 14348 15513 16704 17920 19031 

69 1274 3443 8631 4772 5930 7216 84X5 9618 107TP 12054 13270 14303 15514 10713 17933 19OB0 

I 1275 2445 362(5 4787 5934 7219 842U 9G25 10786 12O0U 13274 14365 15515 16748 17932 19090 

.7 1285 2468 - 3629 4789 5933 7220 8422 9631 10790 12074 13233 14369 15B19 10747 17934 19108 

99 1287 2469 3630 4790 5954 7230 3440 9049 1U7V7 lSjTC 13294 14374 15522 10750 17940 19114 

107 1315 2487 3631 4793 5956 7251 8445 9652 10309 12080 12296 14375 15531 13751 17B50 19121 

111 1326 2488 3633 4793 5980 7261 8448 9667 10813 12087 12300 14331 15533 16757 17958 19135 

712 1337 2489 3643 489U 5985 7263 8 406 9658 10322 12U39 13303 14388 15543 28783 17960 19128 

122 1352 3490 3044 4819 5986 7264 8400 9670 10823 12093 13310 14339 15553 16760 17961 19131 

133 1306 2495 3648 4820 5388 7288 8479 9077 1QS26 12095 13314 14391 15554 16767 17963 19137 

141 1383 2503 3650 4822 5990 7233 8482 9678 10827 12096 13317 14392 15555 16773 17967 19139 

143 13S6 2506 3651 4837 5991 7309 8484 9CT9 10836 12097 18326 14390 153S8 10788 17976 19143 

163 1388 2509 5661 4340 5994 7316 8485 9683 10845 12008 33328 14406 13571 16790 17981 19103 

169 13V1 2514 3669 4855 5995 7319 3498 9685 10848 12109 12341 14410 15577 16801 18002 19160 

1S6 1394 2539 3670 4885 6020 7320 8502 3696 10862 12111 13344 14413 15590 16811 18006 19197 

.134 1402 2531 367 L 4888 6022 7329 8510 9697 10864 131 1C 12345 14429 15594 16822 10013 19202 

203 1412 2534 3680 4894 6044 7335 8522 9700 10872 12124 13361 14430 15613 16824 16024 19208 

212 1422 2542 3695 4899 6048 7337 C534 9710 10878 12142 13303 14446 15638 16827 18033 19216 

222 1432 2556 3699 4000 0067 7343 8536 9731 10879 12144 13370 14451 15633 I6S33 18034 19217 

234 1433 2557 3708 49u4 6072 7345 8S37 9750 10881 12104 13277 14455 15648 16841 13037 10223 

247 I486 2559 3712 4908 6079 7347 8544 9759 10894 12167 13378 14469 15649 18842 18042 19232 

257 1442 2560 3718 4912 G084 7350 8548 9764 10897 12168 13390 14471 15651 16857 18044 19236 

259 1445 2562 3725 4914 6068 7354 8551 9769 10899 12190 13391 14474 15656 16860 18047 19342 

261 1447 2571 3729 4921 6107 7356 8559 9772 10910 12210 13394 14491 15658 16877 18060 193SZ 

264 1453 2584 3732 4922 6126 7367 8583 9778 10917 12225 13403 14501 15661 16878 18051 19263 

26? 1460 2585 3737 4923 6133 7380 8586 9779 10919 12229 13405 14508 15603 16884 18056 19264 

272 1463 2587 3738 4920 6142 7381 0592 9780 10930 12332 13409 14518 15670 16S83 10060 12206 

279 1473 2588 3739 4931 6144 7392 8596 97S1 10940 12233 134 1C 14519 15680 16890 18065 19268 

283 1482 2602 3743 4948 6151 7399 8600 0750 1 094 1 13236 13417 14523 15686 10895 18073 10 271 

294 1497 2605 3750 4957 6155 7404 8601 9794 10952 13251 13428 14325 15690 16911 18079 19273 

'417 8609 9811 10900- 12353 13443 14526 15694 10914 18085 1B281 

209 1501 : 
301 1503 a 

2609 3753 4976 6169 7417 8609 9811 10900- 12353 13443 14536 15694 10914 18085 19281 
2G21 8757 4981 6173 7435 8616 9823 10962 12259 13446 14530 15704 16925 18092 19284 

310 1505 2680 3762 4992 61 

437 8617 9847 10967 1=66 1 

_ __ . .'437 8617 9847 10967 12266 13455 14539 J0714 10930 18096 192B8 

3765 5002 6134 7438 8631 9848 10868 12270 13466 14549 25717 ZS934 18103 19300 

330 1514 2636 3775 5008 6187 7440 8623 9305 10970 12273 13470 14552 15718 16942 18107 19307 

337 1519 2652 3779 5009 6196 7446 8636 9876 10975 12275 13471 14673 15719 10943 18114 19311 

346 1521 2657 3784 5018 0197 7450 8838 9677 10977 12281 13476 14574 15728 16954 13135 19312 

348 1522- 2676 3787 5024 6198 7452 8658 9884 10983 12291 13479 14577 15743 16950 18137 19320 

340 1S21 2657 3784 5018 0197 7450 8838 9877 10977 12281 13476 14574 15728 16954 1 

348 1522- 2676 3787 5024 6198 7452 8858 9884 10983 12291 13479 14577 15743 16956 18137 19320 

35 3 1523 2680 3791 5026 6309 7455 8fK0 9090 10997 13305 18480 14534 1575] 15976 18143 19323 

357 1531 268 8 3808 5037 

364 1585 2701 3812 5036 

372 1574 2703 3818 5043 

3713 3822 5057 

17 6212 7462 

9099 11005 12314 13487 14394 1575? 16967 18150 19328 

9900 11009 12335 13498 14595 15704 16989 13139 19339 

5043 6240 7467 8679 9908 11010 12339 13512 14600 15770 10995 18163 1S343 

375 1539 2713 3822 5057 6242 7470 8682 9922 11013 12340 13514 14012 15784 16999 18170 19347 

385 1596 2723 3323 5004 8246 7471 86H3 9924 11022 12341 13531 14018 16783 17003 18172 19358 

390 1814 2743 3828 5082 6252 7474 868G 9934 11033 13357 13534 14631 15792 17004 18173 19365 

397 1616 2756 3835 5092 6381 7494 8700 9935 11038 13359 13545 14636 15803 1T0OB 18178 19367 

401 1635 2757 3354 5097 6288 7495 8707 9939 11043 12364 13548 14052 1580? 17009 18184 19370 

IX) 8714 9944 11070 12374 1355a 14003 15808,17011 18188 19373 
OS 8722 9946 11075 12376 13555 14065 15810 17020 18197 19375 

311 8727 9949 11082 12403 13358 14073 15614 1702= 18200 19383 

9930 11069 12409 13562 14692 15815 17031 18205 19388 

9953 1JU97 12414 13576 14693 15816 17039 18213 19398- 

8740 9054 11107 12428 13883 14099 15822 17055 18220 19401 

433 1653 2800 3901 5128 8330 7533 8744 9961 11108 12431 13596 14701 138=5 17059 18223 19410 

451 1654 2810 3904 51S2 6333 7535 6739 9964 HIM 12433 13598 14703 15830 17062 18226 19419 

467 1662 2813 3915 5142 6348 7538 8767 9971 11119 12437 13599 14707 15849 17069 18223 19421 

462 1680 2814 3919 5143 6353 7539 8769 9992 11126 12440 13600 14715 15887 17(771 18250 19425 

464 1681 2820 3931 5155 6356 7570 8770 9999 11131 12445 13616 14717 15859 17064 18251 19428 

465 1710 2833 3933 5167 6369 7396 6772 10022 11154 12457 13618 14725 15801 17085 18272 19431 

402 17 ll 2337 3936 51 TO 6372 7003 8703 10030 1HSG 12467 13625 14748 15807 17088 18=78 19134 

486 1713 2865 3951 5185 6375 7606 8812 10038 11162 12469 13630 14750 15880 17092 18295 19435 

490 1724 2066 3953 5139 8377 7810 8813 10039 11167 12473 13631 14761 15904 1709%. 18322 19440 

492 1728 2670 3959 5191 6384 7813 8816 10059 11169 12478 13632 14767 15906 17118 18339 19441 

494 1730 2671 3077 5196 6391 7017 8827 10004 11170 12480 13633 14708 15908 17120 18330 18444 

401 1635 2757 3354 5097 

407 1639 2769 3859 5101 6389 

409 164S 2773 3860 5103 6294 

4J4 1644 2779 3880 5107 6299 7311 8727 

419 1846 2765 3898 5108 6312 7518 8729 

420 1648 2786 3897 5110 6321 

432 1849 2793 3898 5119 6327 

433 1653 2800 3901 5128 8330 

495 1733 3092 3981 5200 6399 7«B6 8833 10071 11174 J2488 23648 14772 15921 17126 18S31 1V458 

498 1739 2901 8991 5215 0413 7629 3836 10073 11177 13488 13655 14779 15931 17128 18S52 19459 

511 1744 2903 4009 5316 6435 7633 8848 10077 11183 12492 13661 14780 15933 17154 18356 19464 

517 1746 2905 4011 5217 6436 7640 8649 10084 11208 12504 13668 14836 15930 17160 18359 19468 

533 1750 2908 4014 5333 6441 7641 8360 10086 11313 12516 13673 14843 15955 17162 18375 19469 

539 1783 2907 4026 5237 6451 7642 8870 10098 11214 12518 13878 34044 15971 17165 18S77 19490 

S46 1784 2908 4039 3339 6463 7646 8889 10094 11318 12521 1*701 14456 15973 17173 18387 19500 

559 1785 2918 4040 5340 6433 7647 8912 10099 11341 1252* 13706 14857 15975 -17175 18396 19500 

561 1732 2922 4053 5243 6484 7661 8916 10105 11246 12527 13707 14860 15976 17179 18400 19508 

570 1799 2928 4061 5240 6497 7664 8923 10111 11349 12328 13714 14001 15984 17183 18401 19536 

570 1799 2928 4061 5240 0497 7604 8923 10111 11349 12328 13714 14001 10984 17183 18401 19536 

590 1800 2932 4062 5249 6521 7065 8927 10114 11252 12558 13726 14802 15036 1719* 16421 19548 

501 1803 2933 4063 5256 6528 7668 8935 10134 11261 12376 13728 1489U 15993 17196 18433 19549 

60S 1814 2938 4001 5257 6532 7670 6W3 10143 11268 12578 1S734 14906 10998 17127 18437 19559 

WO 1818 2941 4005 5200 6546 7071 8950 10145 11201 12589 13736 14913 16010 17300 18447 19561 

611 1819 39M 4080 5274 0555 7704 8951 101TO 11293 13801 13740 14918 16018 1720+ 18454 19563 

2943 4080 5274 0555 7704 8951 10100 11293 13601 13740 14918 16018 1720+ 18454 19563 

619 1823 2943 4079 5275 6559 7722 8901 10171 11290 12603 13742 14928 16019 17213 18455 19586 

620 1S43 2949 4080 5277 6502 7729 8969 10174 11299 12014 13740 14932 16022 17219 18457 19568 

630 1847 2955 4089 6278 6587 7740 8970 IOI75 113U4 12017 1375! 14984 16025 17224 184S8 19 

633 1850 2968 4096 52S4 6560 7745 8972 10170 11307 13622 13762 14837 10040 17234-18464 19 
636 1855 2972 4100 5290- 6573 7757 8979 10178 11311 12623 13763 14952 10041 17239 18467 19578 

638 1061 2989 4107 5297 6581 7789 8981 10181 11316 12835 1*767 14955 10042 X72S5 1 8475 19580 

830 1865 2398 4110 6300 6588 7782 8388 10183 11823 I2U57 137TI 14957 16070 17269 18478 195-37 

040 1866 3001 4123 5306 6087 7783 9001 10184 1 1328 12664 13777 14S58 16071 17279 13493 19588 

644 1874 3008 4138 5326 6605 7792 8014 10185 11329 12672 13737 14989 10073 17288 18495 19598 

041) 1UB0 3013 4156 6344 6612 7793 9021 10192 11333 1 2>W3 13788 14970 16073 17290' 18496 19600 

633 1903 3014 4165 5300 6630 7800 6023 10206 11338 12607 13791 14974 16075 17800 1S5I7 19600 

6M 1904 3023 4170 5366 063} 7807 9029 1W07 11318 12096 13794 14977 16091 17806 J 852& 18510 

037 1906 3024 4178 5375 CC33 7814 9091 10224 11350 12098 13798 14985 16103 17300 18540 1 9622 

673 1908 3034 4189 5370 6638 7815 9043 10241 11353 12599 13803 14990 101 OB '17308 13543 19624 

674 1914 3037 4192 5389 6039 7826 9049 10=46 1135! 12707 13830 14991 16111 17316 18548 1M25 

635 1915 3048 4200 5398 6044 7832 9054 1<EG= 11350 12710 13G35 14893 16118 173=0 13549 19628 

TOO 1U30 5065 4207 5398 6648 7041 9007 10268 11364 12716 13850 14990 16120 17322 33561 39647 

221? 4 S4 5 400 S6 5Z ?847 wgg ?2S2° 11367 i 2719 13 ®s! 15 «w iei=+ 17339 18559 wesi 

733 1933 3071 4213 5410 0609 7860 9070 10274 11368 I2T32 13863 15007 18129 17354 18574 19655 

738 1949 3060 4=13 S413 6694 7677 9(774 10292 113G9 12724 13857 15011 16148 17358 18580 1965= 

746 1964 3084 4219 5421 6706 7909 flOTl 10301 11373 12745 XS85S 15012 10169 17359 18583 19663 

760 1971 3094 42=0 5430 6708 7917 9086 1030= 11378 12754 13882 15014 18171 17300 18594 13888 

765 1976 3100 4243 5431 6712 7923 9095 10309 11392 12755 13364 15028 16173 17373 I860! 19672 

7B7 1981 3118 4254 5433 0714 7924 8115 10311 11410 12782 13867 15030 10174 17377 18603 19673 

771 19S5 3123 4284 5435 6737 7928 9110 10318 11445 12768 13875 15045 16192-17380 18619 19686 

J 93 ? 3133 'mi 5443 672= 7934 9128 10320 11457 12770 13878 15049 16201-17331 18634 19691 

782 1991 3135 4273 5444 6737 7940 9130 103=2 11484 12775 13881 15073 1GZ2S 17385 18830 19700 

783 1992 3154 4=78 5445 6744 7943 9131 10333 11-173 12782 13390 15076 10227 17386 13658 19702 

IS? ISSi 215? 4280 5454 6747 7946 8185 10332 11430 13794 13898 15077 16=29 17409 18665 19703 

794 2000 3165 4288 5456 0761 7949 8136 10339 11493 12809 13903 15078 16=86 17410 186CC 1970G 

799 2002 3169 4290 5405 6763 7954 9139 10342 11504 12814 13908 15079 16247 17412 18670 1971 1 

2??. 35SS 2129 4=92 5470 6772 7957 9141 10356 11313 128=0 13912 13081 16230 17416 18871 1971= 

812 5l»7 8X75 4309 5439 67/7 7809 915 0 1 0303 215J4 13840 13914 13083 10=53 17433 3067C 197=6 

212 221? 2il 8 4 3 08 5491 6787 7060 91sl iSK 6 11519 12849 13918 15092 16262 I74S4 i«rs7 lorn 

815 2021 31.9 4310 5493 6B02 7972 SIM 1G37U 11525 1=803 13920 15053 10263 17438 18881 10732 

817 2022 3181 4314 .5501 6803 7993 916* 103CU 11528 12BS7 13939 15104 10263 17441 18682 la74 1 

8=9 2035 3310 4315 5504 6805 8003 9177 10381 US89 12863 13940 13109 16=68 17452 18683 19742 

032 2039 3=15 45=0 3505 6807 8008 91S3 10384 11546 1=678 13944 15118 10273 17459 18698 19754 

S38 2042 3=15 4332 5309 6816 8009 9190 10KG 1154S 12891 13945 15134 XG274 17463 18703 19774 

MO 2048 322= 4388 5013 6818 8010 9192 10398 11552 1=892 13957 15137 16286 17469 1B705 19778 

647 2049 - 3=35 4339 5320 0822 8019 9193 10397 11356 12B09 13862 16143 16291 17476 18713 19701 

850 2052 3335 4S41 5532 6829 8044 9195 1030H 11558 12918 13908 16144 16300 17488 13730 19782 

851 2060 3239 4342 5589 6849 8046 8200 104V0 11572 12921 13978 16152 16304 VT486 18730 19799 

654 3UG7 337 L 4383 3546 0857 8002 9203 XW10 11575 13925 13963 15150 1C313 17494 18737 19303 

S5? =075 3244 4372 55G3 TOGO 8005 9209 1M17 11576 12931 13989 15158 10316 17497 187U9 19804 

871 5091 3253 4385 5508 6873 8067 9232 10419 11577 12939 13992 15160 16330 17499 13748 19813 

878 2096 3235 4401 5901 6879 8070 33M JMST 11583 12848 13993 15164 16333 17501 18749 19326 

881 2101 3390 4402 5009 6095 BOBU 9267 10432 11594 12949 13998 13165 1033* 17507 18756 19827 

892 3102 32 C3 4420 661S 6890 8087 9S62 10442 11014 12958 14004 15174 16349 27511 13753 19333 

894 2158 3275 4430 5617 0897 8090 9263 10*45 11817 12933-14007 13178 16353 1 7547 1E769 19833 

895 2147 3280 4433 56=2 0898 8099 9264 1M5U 11627 12959 14008 1518S 16361 17537 18781 19834 

*£ 2150 3301 4440 5023 6899 8105 9271 10453 11G66 12909 14014 15190 18365 17359 1B783 19836 

S23 2151 3317 4443 5633 6901 8129 9376 10455 11679 12987 14017 15192 16367 17560 1S784 19844 

928 2168 33=8 4459 5052 6902 8129 9=78 10402 11084 12988 14020 15200 16384 1 7576 18603 19853 

9=6 2169 3330 4459 5654 6925 8131 9228 10471 11689 12990 14034 15214 16383 17377 18819 19054 

343 2170 3341 4404 0656 6920 8133 9296 10495 11602 12334 14027 15216 16391 17625 18829 19855 

255 21 IT Xi 3 4465 5858 6933 8141 9305 10503 11708 12997 14033 15=28 16406 17634 1B83I 19BB7 

=181 3349 4498 5677 0943 8101 9306 10612 11710 1=999 14037 1S248 16407 17035 18835 19871 

5ZJ 2IST 223? 4507 wts hw dim 9334 i«m 1171a laois i-«x» 1535 = iwto 17037 issaa isa«7 

98C 2191 3335 4309 5082 6948 8180 9318 11627 11715 13017 14835 13257 18403 17843 18862 18889 

.222 S?? 222® 4534 5690 ess? si? 3 *52 }{}jai una 13023 14050 lfisso 16454 itb* 7 lasea issso 

3225 2211 3362 4533 5092 6939 8189 9327 10538 11721 13023 14076 1S203 16464 17648 18870 19895 

5221 “ J 5 4535 5694 6966 8191 9329 10564 11727 13029 14077 15269 16467 17055 18874 19896 

2217 3373 4542 8701 €972 8293 9343 10a ig 11728 13033 14096 15278 10470 17877 18875 19901 

1°J 6 3=24 3374 4543 5704 6389 8197 8356 J0369 11729 1303B 1*118 15279 . 16*77 17083 38888 19911 

1018 2228 3408 4544 5706 6890 8202 9357 1038= 11730 13044 14127 19281 16464 17688 18837 19818 

ifSi 252! 45 59 5713 0998 8204 SS 12I 83 1,7 *5 woso 14m waes i64as i7mt uukm 19927 

1U26 2237 3420 45B5 5721 7013 6215 9 36? 1 06 86 11756 13059 24130 15301 10491 17699 18914 19928 

1033 2254 3424 4658 5725 70X6 8219 9373 10601 11780 13063 14148 15302 16483 17704 18916 19929 

1°49 2256 3430 4301 5742 7U29 8321 0277- l'WO* 1X768 13071.14156 15303 16511 17721 18926 19943 
1099 2357 3437 4S67 5743 7030 8224 9390 10007 1177= 13073 1416= 15307.' 16513 17729 18938 19947 

1074 2=39 3459 4570 5740 7045 6234 9408 10608 11778 18074 14163 15318 16518 17731 18943 19354 

5HS3 4572 5755 7054 aass 9410 lueta iitbo 13039 mist 15315 163S5 17743 isms 19957 

1?»3 =286 3467 4574 3764 7061 8238 9*10 10618 11738 13096 14173 15316 10541 17736 18947 19959 

rifg 2290 34 SD 4582 5767 7072 8341 9427 106=7 11796 13096 14175 15331 16558 17757 18966 19972 

11U4 329* 3472 4391 3772 TOM 8343 9430 10629 ” 

312? 2297 217 5 4 em 3789 7064 8358 9447 10S38 1U«0 13U2 14188 15365 16576 17774 18963 13891 

JJ2J Sii 3491 -W 16 5798 7087 8269 9453 10695 11841 131 14 14197 15366 10579 17778 18872 

ll? 6 2313 agM 4631 5810 7089 B273 9404 1«W6 118G2 18116 14310 15373 16681 17784 18878 

1145 2334 3ETO 4633 5812 7112 3278 B4B3 10607 11883 13130 14330 13375 1H5B7 17793 18984 

114? 2334 3507 4646 5819 7131 8879 9«8 10669 11885 13134 14331 15388 16591 17794 16303 

?J§! 2f J1 4852 Mil 7124 8393 9477 10070 11901 13147 14231 13394 10003 17803 1S904 

1158 2348 3514 4853 5327 7130 8303 9*83 10082 11902 13150 14334 15399 16618 17809 18008 

3150 2330 3518 4681 5830 7136 8304 9495 10087 11905 18157 14230 15400 16630 17818 18899 

3252 221 2 31 46 ® sas* 7 x 37 8307 osos loess xxwe 13275 14257 i»4M 16624 lxaax 1900 * 

1176 2388 3588 4069 5842 7X89 8310 9515 10031 1X023 18184 14260 16408 16638 17324 19007. 

Payment will be made upon presentation and surrender of the above Debentures with coupons due . 
May 1. 1979. and Mibsequent coupons attached at die main offices of any of the following: Morgan 
Guaranty Trust Company of New York, 15 Broad Street, New York, New York 10015; 
Morgan Guaranty Trust Company of New York in Brussels. Frankfurt am Main, London and Paris; 
Banca Vonwiller & C. S.p.A. in Milan; Bank Mees & Hope NY in Amsterdam; and Kredietbank 
SJ L Luxemhourgroue in Luxembourg: 

On and after May 1, 1978, interest shall cease to accrue on the Debentures selected for redemption. 

Dated; March 29, 1978 



The following Debentures previously called for redemption have not as yet been presented lor 


5? Utt 1870 348* MS7 3993 SlSS 7689 9861 10338 12713 18355 

84 1887 2892 3261 3£7£ 4£83 5351 9855 9878 20345 16566 19068 

734 18SB 2037 3566 3277 4086 7888 9859 98BL 20349 177X3 1S276 

year of 9-op compared with 8p T “ _ - ^J- 1 121 - 3 to ' be a sizeable pick-up in JeacL' finance ’co 

for 2976. Because of its high ."' 7 ** a’} £f *“L C copper prices. - • . Melbourne 

level of overseas earnings and Esn-aord. debit -I.’ 40.4 *iu.4 Taking a longer view, 

e _ J i n.Lf. if f. at ^ U*PM TYlornri tr\ n>a tWnirh 1^- - .TW * Tfti 

sterling is saown in the extra- group's copper operations, assets of relatively yoiing mines *t*AUnim. 0 r S-a share for each -“A- ^ 

[ordinary net charge of £40.4nu which contributed some 16 per and new deposits for future Ortuiacy-50 ettfltshare agairistan op Mnrrh 

1 which reflects the rail in the cent. of. last year’s pre-tax profits, exploitation; asset ^a<3ting of *A1.6» a share: T^T-' Sl ™r? therijohn^n 3 

sterling eaui valent r*f nrinr ™>.ir’s were dampened by the fall in the ■ Follow™ u tWa 1 at*** 'Pearl, the London, manat- .profits nave increased from £L4m, 

which was reduced ^--exchange zinc. . did better including the UJC yesterday. WTiether this level^vi ti md ^. an -additional base, for .r.- E., Jv BARWlCK 

I losses on foreign curreocy loans ' . be sustained pending the publics- barfing our finance ^ for small Hhmbro America lac. announces 

and other charges to £10.4m. While RTZ has done better 10 tion of the' annual report - on busi n ess activities in Australia, that Bfiminghani and Midland 

0.. i n ^ « C0 1 nd J? alf of ! ?st year than April 26 remains to be seen, but “While we will make 00 change Counties Trust has signed a 

m wS : ^ &11 ?! I7 ' 3n ?' Sir Mark Turner, the chairman, it is- difficult • to see the shares ? the existing management of memorandum of intent to pur. 

to an-om. in the past years anticipated back in September, attracting much interest while «ther company-other than into- chase* all the shares of E. T 

pre-tax profits is more than the current year's outlook may base-metal prices re main -in limbo , gating administrative procedures Barwlck Industries Inc. of Atlanta 

hop e*4 ea fn ’WTO* by Mr. E. T. Berwick and 

5 flenence of EIL in tite fixmneum mBrobers of h is family. ’ 

A good quarter for Kloof ' ^ & f “ 

! 0 ^ -- . / in A963 to provide venture equity The purchase -is subject to 

THE FEATURE of ah otherwise the gold grade of the .ore handled, kept the mine out oT the red. ‘ '- S* 1 m5rtnri?or bShutloSl a!S 

1 inauspicious 8lart to the March rjold Fields vrium if hn« hwn a ino gold .mm? ] nesses or easting ones seeking ex- bank debt .In. a manner acceptable 

quarterly reporting season of "5“ ■ Sf n resuJ ^ in these coir Sf S — to Birmingham and Midland and 

South Africa's gold and uranium St£fS£ t ory gold pSSs rwSred sSSuse^The^'SSst ^Current worldwide -holdings of preparation and execution nf a 

mines is provided by the Consol i- East Driefdnteim foTSaSSe n>- shSSmbllow- amount to £32. tin-' of definitive purchase agreement 

, dated Gold Fields group’s Kloof. ™ed $174 wmwired With S1W of tte Australia and Papua New satisfactory to both parties and 

Despite a lower than arerage gold “the iScmiSr ?uSerand aLo in ll?e w^STrS? represents the taut fh#MHL , 

price H recen.-ed during the quarter raised its mffling rofe But gSd lo show n« ^rofib SertM suigle area of investment, with a Closing Is e-^ected to be no 
of $1M per ounce compared with production dropped as a result but before catriia! MhpnrtititM 'tfauii and invesLment portfolio of later than June 30. 

JW7 m the previous three mooths 0 f a tell io the ore grade. 

^«ter“Je,Tro6?^17 per S ogeM^whSe w« DrfeSn n “™ * Cf.VlinO YtliftinO OVnandc 

to r^. &vn^. rechStSSsis^n" irss3s»»-" its £% is ^lining rvnitiing expanas 

recovered /rom the changed gold prices of $172 and ftjgr r.m s^s ini “ Stirling Knitting,' the Man-. Last night London Sumatra than-' 

° f r OTderground 81 <6. respectively. Venterpost suf- vSSkw'“ ^ chesteTbased kxiiurear group, has stood at 125p compared lo the 

? a 7t , ?.«i^°?.?» d h , “ mllllonno ^ fere** from.* »« production ^SSSS ~ ” m ^ acquired D. Vertlow, nianufae- McLeod-Sipef offer of l.50p per 

m V h * consequent and a rise in costs to above the west DrieRmtein ... m iss 23.10s is,cra hirers of ladies' and children’s share, 
reduction in costs and also raised break-e\en leveL 4>ute aid has •loss, t At^r receipt oi state nd onterware. for £399.000 cash. SlpeFs Indonesia-based . direc- 

Stirling said yesterday tbat the "tor who has been . (here for 1'j 

• ■ * ••“- deal would provide additional years was tn London vesicrday. 

T> * 1TW A. _ • -■ -• manufacturing capacity as well as He contested the independent 

De Beers 1128m. Botswana min e range into cbikh-en’s clothes. lndrniesUm°esta^s^and said ihat] 

_ - An additional payment of contrary to the London Sumatra 

THE DECISIVE preparations for The announcement said that the metres. ' " * £60.000 will be payabie if average .Board's assertion, ihere had Uet*a 

the development of a new. major First National Bank of Boston had The gem content at Jwaneng is pre-tax profits from Verblow over - 0 f comparable Fsiaie* m 
diamond mine in Botswana have been retained to arrange flnanc- higher than Orapu but lbwenhan the next three years are pot less xecent and 3l j ovver p,-| Ces 
been completed with the formal ing on the Eurodollar market for Letlhakane. This would put it at than £90.000. • than rbe independenl valuation, 

announcement yesterday of a the Government's share of the a conservatively estimated 20 per Verblow pre-tax profits for the r - 

joint venture between the Govern- paid equity subscription. . cent. • year ending July 3L 1977 were cfSnvrDUD/^u a r-iriw 

ment and De Beets Botswana The greater part o> the con- At present the De Beers group HWH but this Included the tUINbUKOH « 

Mining, a subsidiary of be Beers junction costs will, however, be mines some 44 per cenL of rhe benefit of certain government „ MERGER OFF ' 

Consolidated. met by De Beers. Approximately world's gem diamonds. The Jf'thJrSta THE MERGER between Edinburgh 

Production at the mine, "bich iq ner cen t, D f the Tunris will be development of Jwaneng. in addi- N ® t tangible assets at tbal date General Investments and an 

i n , s -m financed by export credit but De tion to expansion already taking r rrouu. • nf unnamed private banking and 

after the ftffiendlture of £12». , m. Beers will raise the balance in place or piauued within the grouts J^,!^ nl £ ra "?L 0 / Insurance group is not to 

to* forra or i hJs ^sure to about 55 “bich haCe 

will lie 3.5m. carats a year. Although the operatioos of De per cent by the raid-l9S0s_ . .. apparently been going on for 

fhu| tn ex«2rfta‘» m the nlmSrf Beera BotWfJuia are now - tein? De Beers shares were ' finxf J}S Mr^Mike Togz *° me months, and which lead Jo 

JSSL-t' r5S*“2S extended, the Government’s share yesterday, closing 5 higher at 826p. aShvtSn’ at?onal aShlete. as ita the shares - being sus|iended on 
Wih2 p of ** P rofl ^ frotn its operations ' / , SkrS^dtiSaor March fi, have fallen through. 

B»-wana. much the same MINING BRIEFjS - • . oerrr-oc ' ", Yesterday’s announcemeni did 

The effect will he to rimiblc deD<J . S rBma ‘ n °t“ c& tb ? SAme r **slo Amenean Carp araUvn -Coal MILN- MARSTERS not Identify Ihe other parly bui 

De Beers’ £128m. Botswana mine 

The effect will be to double A * s, ° * merUa " c^n^atHm-coai MILN. MAK51CK3 not Identify ihe other parly mu 

the RnNvsnn Gnve-mrvmf, g J} '* f 2T^ B the reglon of Shares flUIn atarstera, the B and G has disposed or its M 

in^me when the mine nv will have * 23 | Norfolk btted ^ cent, stake in Maynard 

conjee *n ft*n n*-oHi»c»inn nnd to « ‘ “ “ " 

an international athlete, as its Qn 

marketing director. March 5, have fallen llirough. 

■ .. .. - ' Yesterday's announcemeni did 
MILN. WARSTERS not Identify ihe other party Insi 
Shares of flUIn Eflarsters, the B and G has disposed of its 51 

■ -—■■■no * uv mi mb mi, ’ . _-n u..,_ „ n- sttrtti Africa; DUmninoiif: .Mnwcdoiawd *v U **w.- «• 

come* *o rm n-oHi»ction and To tcomeha, i msot. Ata u> Pow*rfArn«> breeding gxonp, which is on the WaUace and Kersley for £77.50U 

-'oncniirl-ite rio Ro=rc' dnmlna"r«p ye ^ rs leas ® 00 _ Ul * development (Krie i, ?n.«o. Btesbok auwi. receiving end or a 200p a share cash. 

in *h« (nt er n‘’* 5 onr« induct th«. and operauon of the mine. HU ”- ?£* - L * tflt0 a bid approach front Hflleshog Maynard. Wallace is part or a 

rfi-imwida will ho ro abated Diw ^tifcether 30213 la *L StouP of insurance and reinsur- 

throu^h .. the Central Selling 2f h n ‘*?? m f^LSSSS SP-»« J. Cofcei S.=a. I having- been suspended at 163p on anoe companies within the E and 

0r**'»nis3t1on. some speed, presumably otber CoWwier. viertomcin ii«.ei3. Monday. • ' ■ ;• ‘ G group. Last year it wus said >o 

The broad lines of the agree- »®eetins the determination of IpB^bog. a . Swedish company, hace made a useful contribution 

ment between the G or eminent the Botswana Government to ^T, vvhich already owns «a.4 per cent to profiti ItJ ig75i Mr F n. 

and De Beers follow’ nredictions exploit the deposit as quickly as 5vfatiUud colli ernes' Mpaka Him? °f f* 1 ®' grmjP ^ recently agreed—. Maynard and his associates 

made earlier this year. The possible ’ bearing in nund market- 1.033. Mornxmie 30.543. Group total subject to E xc h a n ge. Control con- acquired a 17.4 per cent, stake 

Government’s interest will be ,n S constraints,’ as an official put*20 _ _ . sent— to Increase this stake by ^ E and G . 

between 50 and 70 per cent it. last June. fSSS. Sf Shareholders of E and G nJU 

The Government will receive 50 , The first disclosure that an ^ZJS^uJt^r r.x'.s u>'. over Banel rotes Jr «ww proposing to wail for tradinu to 

per cent free of' consideration, important diamond pipe had been snvcr ^ann-tonnci 53.0 «6«.oi. zinc to bid for the remaining snarw. ^ resU m ed m rhe shares until 

but it has an option lasting until discovered at Jwaneng came only (per «oli io.r no.3). anOmeOm: Lead The group achieved, its original after a dj>t-tiied circular has been 

rhe end of the year to aoouire a a year ago although De Beers “"»*** : _ ,,wlDe9 ' rtake when ■ Miln negotiated a sent to them 

further 20 Si by sVbscri^ found .the/Trst Indfithm In 1973. trade wilh 

tion. There «eem-' little doubt The pipe is overlaid by sediment emtcantrau toautai 7*“«x inksnn. co m P any ] t b r ? c yca, 5„ a ^ — ASQOTIATF 1 ^ npir c 
ibis will be taken up. to a depth of between 30 and 50 conwnine sine ironoesi ss.si4 isuw. whidi MUn nas exdnsive- rights AaauLia 1 1 a A Li ' 

to sell -‘ HUleshog s . monogerm j_ Henry Schroder Wage and 

— — ’ sugarbeet seed varietis. Co. on ApriP7 sold 12^00 Whear- 

• Howevrt-. HxDeshog can pup Out sheaf at J94p on behalf of assn- 

IT-1 w- • i An of the trade agreemenr— which ls elates. 

M YPDGG InCIirQnPA llimnc TA T 7\ /ITI an Important contributor to Ml/n Laing and Cruickshank on April 

JCjAVCoo 1119111 dutc JIIIIIU9 oroflts-^f a third party acquires 13 ■ bought 25.000 Wheaishref 

more, than 25 per cent -in the Ordinary shares for a subsidiary 

to a depth of between 30 and 50 coownine zme <tonoes> 

Excess Insurance jumps to £8.2m. 

Pre-tax profits of Excess JLnsur- the group account continued with ment values. Claims and expenses group and this could discourage of Guinness Peat Group, 
ice Group, a member of the ITT satisfactory results in motor and were slightly higher at nearly any rival bid for the company. Cazenove and Co. bou, 

ance Group, a member of the ITT satisfactory results in motor and were slightly higher at nearly any nvaJ 01a 
Corporation, rose in 1977 from industrial fire sectors, but home- £3m. so the fund stood at £l4.1m. . AMriAx 

£5m. to £8 2m. Short-term under- owners business remained un- at the end of the year against LUlNgJUf 
writing losses were reduced from profitable. Employers’ liability £I0.4m. at the beginning. Mr. x^mdon Su 
£4. 6m. to £3.8m., long-term profits showed some deterioration from Saxnengo-Turner, reports that the -» tcH . ay n 
rose from £99,000 to £232,000 and the continuing impact of iafiatlon. actuarial valuation disclosed a •upL eo d^ipef 
Investment income, after the The overseas results showed a surplus of £771,000 of which .. UQ m Kardr 
transfer to the long-term revenue further deterioration mainly from £231,000 was transferred to profit p^m thetwc 

Cazenove and Co. bought 4.W0 
Northern Foods ai 89p for ilis.- 

lnvestmeat Income, after the The overseas results snowed a surpm* ot iu,i.wu 01 wnicn . bombardment of exhortation 

transfer to the long-term revenue further deterioration mainly from £2SI,<W0 'vas transferred to profit ^“S^ rideTin this con- r^R, C ' , ° D , 

account, amounted to £12m. declining rales in ihe industrial and loss. The group is going ^ * 5® u 5 ht ?-°0° n .. BU,k,, > s u ° 1 , , al, 7, h ,‘ 

against £9.3m. Tax came to JE22m. fire markel in most overseas ter- ahead with Its plans to have just te ri*o jw*- . p ehairman Mr .CisIlMPS) at 52p on Ixchalf of Mr 
against £308.000 i and net profit ritorles. -Mr. Samengo-Turner. one life assurance operation in ffils iKS £j' H’ R N ,?r ans - a ^ QT}ncr uf 

totalled £«m. compared with welcomed the reduction in under- the U.K. bv the merger of Excess V ou will Juve - Jll V rray and * . .. 

£4.9ra writing losses which in 1977 rep- Life Assurance with London and tun £ 2? iSL^toJSS »- La ^ re ^ Ce ^51 nn , 

resented 4.3 per cent, of premium Edinburgh Life Insurance. 

£4.Qm writing losses wtnch in iu<7 rep- Lite Assurance witn Lonnon anti y~ 'Tr,, r^. 're,w a n™« r u ?‘ * *-■* , 

resented 4 3 per cent of premium Edinburgh Life Insurance. seen the favourable March 23 sold 4R^.4ti Ikin' and 

Mr. W. L. Samengo-Turner, in inC01De compared with 62 per Dividends amounting to £L.6m. comment i^lcli our final offer has Masco a| BOJp and SJAib ii SlMp 
his chairmans statment, reports cenL ^ lfl 7 6 %, e aroup was con- were paid Prom profits Iasi year attracted. The Board * rejection of on behalf of discrotjonary cfi-nls. 

premium. incmne, net of reinsur- jj n[J j n g j ts e froris to reduce these leaving capital and surplus avail- the. .offer. has riot beefl supported. They ._alsp sold ^oo at w '- on 

ances, of £S9m. in 1977 sgamst j ossea particularly in the marine able to the group of £35.8m. by one single national ^news- behalf of an associate of i.ury 

£74na. Over half the fcnwfll j avialion Expressed as a percentage of paoer-. . axA Masco. , _ 

premium income is generated in - . premium Income, eros'^d up for He also comes back to the dues- fin April. 7. they sold 4 M-iO at 

the U.S. so the reel growth ra Premium income on long-term JJ^mbSnn. this\mounta toover tion of what will happen to tbe 8SJp on behalf, or a discretionary 

prmnfum income is understated business in 1977 was little changed ^ ^ ^ ^ rice y lhe bld should fait rtlent.; __ 

when expressed in sterling terms from the previous year at £2.Gm. • - - — ~ ■ * "■ * ' 

because of the strength of sterling Investment income was lower at 
last year. £0.9m.. but this \»as more than 

In the UJL, the development of offset by a £2.4m. rise in Invest- 

percentage of paoer." . and Masco. . 

grossed up for He also comes back to the dues- On April .7. they sold 4b;i0 at 
mounts to over tion of what will happen to tbe 88 jp on behalf, or a discretionary 
share price if the bid should fait client. 

future 'level of MLR- towards the close to 2-:: per cent. 

Day to day credit appeared to In the interbank niarkpi ovi-r- 
be in -short supply in the London night -loans opened at 4J-4; pvr 
money -market and the authori- cent, and had slipped in 34.1 per 


CHEPSTOW' RACECOURSE CO— for 1377 S4. Ola. i n.38m.i-i>ank balances vul caib |%/l mifYlIllYl I All fi Til €¥ | f Of A .'/ /Vv 

turnover £200.897 .0*6.2*51, W f=*£« '“619. «ud orerdnft ad | V| imili l liH I JClIlilUtl JVfllC # 2 /O 

iffl s?n after lax credit E3.6O0 ideblt (fl-Mm.». Ex gratia payment of £S-<i] •*- * ■ 

£3.4601. Loss per tfiare oaBSp ™»<le io rearing director. Meitteitti 

No dividend < same'. -• Investment Tnm baa an towrost of 16.05 Kt,„ir n t Knvland Wfnfiniim Tirtura 'level Of MLR- towards the Close to 2-3 per ccnl. 

DERWENT VALLEY RA1LWAY .COM- P«r cent. Of the eqtnty. STeeltna Had- «U1K Of tSttguno .UltumtUR tUOlrS 19* ** «. • n ... r u aT nvl-r- 

pany— N et revenue for 19^ m.762. after d>Fe. * at ti.« am Lending Rate 7J per cent. Day to day credit appeared to In the interbank mu rkei 0 

adding tbe balance braaciu f unrant, hick cos forth fark -racecourse (since April 11, 1978) be in -short supply in the London night -loans opened at 4,4a p- r 

apnroprlatlng un^Lumod dividends for pnuTterore and estate cuuersi— Turnover money ’market and the autixon- CenL and had supped In .»»l Pvr 

tecd <J V u8BS '„. ina ^!S ISitS, Bank of England Minimum ties bought a small amount of cent, by noon before ia dins nffio 

ffiSTt »^T5S£ft» m,w*w ^ J^,t r61 ?4,2^ 4 - 8 Dir« A c fl nS Leodiag Rate rose From 65' to 71 Treaau^WiteftD direct from the finish al M per cent 

general reserve. EKxsii araiiaoic io io. pi 73d f9M3 p>. Eartungs per £1 sturc per cenL as part of yesterday's houses. Banks carried forward .Discount houses* buym- raj. 
sbareboidcn. Dividend at s.5p itwti nor „ , BudgeL Consequently the normal full balances but this factor ‘wiu* for three-month Treasury 

sh«rc on Prefenucv darot. and iwto , ...P - Bem ™ marfcpt related fnrmuia for niitwoEbed jby a net take up of rose lo around .7 per ceni ai'i-r 

Ki «. "iSrzjjRrss sssam"®' "S 

carried forward 2 r i l,1 ° £3 - 45m - 'H.flSm.i. onistdr Great While interest rates at the short revenue transfers lo the if repeated al Frida ' | r e3*-u 

oixor— ‘ T urnover £i«5e«. for niiw Eritain '£13.631. unlisted £15,734 ond landed to firm, so the longer Exchtouer over Government din- bill tender would tend- to pmni 

SSS. 1 iuffls.-ssy.usa? -s™- - nnrrnal msrkp- n»lated formula f(*r 

a , “in a.™. ■ miuaB-. virrai YV QUC luivrafl uica al uic niiuu reVEBUr ■ uwwisn . >■»» ■■ ‘ ------ _* 

jover £iss.3ee. for nina Eriiain £iS8^3i) '£13.631. unlisted £15.734 and tended to firm, so the longer Exchequer over Government din- bill tender would tend to P°V” 

»j. iS .nST^ 9 Mjrtt _*owed on i»**rd * K 

before tax credit "un (debit eu-KbY. increase in '.iqnKiib- C4.t«M ino.4181 easier tendency alter the in the note circulation, n 

Goodwin written off n3-siriiii). Attn- decrease i. Heeling. <i Bishowgatc. EC. announcement, tbe latter reflect- Discount bouses paid -around 44 cabnilatlng MLR. 

be wrlne" down by 2O.0W vrhJrii is has been eticouraplcs. and expects a rear TT i _ ! ■ 

cfcvtwd directly ha x«*v«. « arowlb Medina. Hdrxfdrtb. Hear j ^ . ■» 1 I ' . ' _ 

Board, however, has plans for U|f Orth Awfl S jjwn. 7 ■ 1 - ™ ■' _ ^ 

perry which could lead lo the renllsnuon >*SST RAND CONSOLIDATED MINES ( |lB V* w . i ., e _ ■ • ' K.E1. Ki- 

of a more snbstafflial sura!* Unaudftod —Results Jor 1077 already known. Fired Ida !• nonce..; - 5i--57 B r • -r . 6-Jti * 4 

profits for first tee munths of current _.R=L66m. ‘JOSm.*. rorreftt Ouo montli b-b , 4 j ![£:«£- 818 

S?S5«^ 8r ^-=siq 1335 jws v.- aa* = 

EAST LANCASHIRE PAPER CROUP— H, WOODWARD AND SON '(vnimMU Oonjewr— 8ag-81| 8il-8« SbS 1 ! 1 ■ ... 

Results ftir t«7 reported Slareh 1»- <3h*/n. jrWcl? b«J)ev. rirU eodlnwlm.*'— R<* wJ»b r»#ran-.- . — - 9<e4>6s - • -■- . ~ ' ' ~~ ■ 

man ears that with improved efficiency «“■ rear to September M. 1077. olrosly — ■ ~ ~ 

and contJtnalnB technical dcee»pnient io rnown Group fixed assets tass.TSi Local author! tie*; uM Hnante bosses seven dnyS' DOttCe. others wren dm* fixed 
mind, the mill's capital cspendlturr pro- <fg ~ 8 - 3 ‘ 4) - nc| current ossets El. 13ra. nominally three yean *H*1M oa cent.: four rem* IM-H '■er-peBL: tee y«n» 11*45 
gramme -over 1977 and 1913 will total (ttoj-TW'- Worlftna capital increased by ftping rates for prime paper. Baying rates fbt Jopr-XPinth UiK WuB 7 5 a*74 pe 
over £1.4a. CCA statement shown 14OT.009 '£3IT3.2?0> Grppp has pha^tl out Approximate selling rates lor one-month Treasury bills flats -per ccW.; DM 
adjusted profir beTon- tax for 197? I7S3.M8 WH^diary Charles Reid and Son and tire* 81(6-6X16 per cent. Apuroxtmaic seltlno rate for onMDpnfh bank 0103 Mi per ccBt« 
alter additional deprwlauon E436.WM. «wt industrial rquipmoM divislop. as *rwn motilh 6iS|b-7 p>'r rent. One-morufa trade bills 61 per rent.: imwaonm 71 per CD 
07 sales adjusonent credit £3.600, seanna Derember =t. 1977. because nf fall in Flunc, Home Base Rates < published by the Finance Bouses Association) Iw 
adlistment £33.600. Group fixed assets demand and profifahtbir Mw’lnc. Deposit Rates ifur small sa ms at sovtto rtaj-v i»Ucc> 3 per ceoL Clcamsr ww ■ lUjfym.t. ha current aswia tonntjy, Liverpool, .April a. at 3 n.m. bIUsj Average lehdm caws of disconot 5JS61 per- cm-. .■ - . 

5i«-57b' * • “ ■ 

f-i ISIS- 

7-7 Ij |L 

7 la-7 *6 I 736-678 
| 869-8 

sa^svi 1 854-0*4 
940-SSs W . - »'■ 

aiB^Wi ; - 

- I 

6s, ■ 6.6,'. ; a.;. 6'! 

8 ti ! 6&63i- »;/ .. 

...6 h,-.i Ail-*)* 1 

- - ; - 7 4o-7»4 

__ .-1 — 

ana finunte bosses seven dayS' DOti«. ocber* wvefl dm* 'fixed- t4 » oa ; I « 7a iPSlTwn ^ 
«nl,: four yean. Z S-* 

for juaHub^Tpcr «ot." Ttwsonf 

xi/ u i/y uyw — ..r ” ” v o O 

' of the so-called 'smaller 7 business these days. 

: } Welcome though any contributions from the Chancellor 

.. v-;"- V '- i ' rs-Av- 1 : 

'■;■■/ We've helped all kinds of private companies with share 

/ and loan capital (orboth) overtheyears. 

Somehavebeenbig, some not so big. But all of themhave 
come to GreshamTrustbecause they wanted to bebigger 

' They're the kind of companies wecanhelp best- 


You see, we believe m letting good management maru 
It^s abusiness partnership. We provide the tools, you finish 

,.v. . ; 


•1 i/»Jf ^ r.'S 

;v. Vv '.W?^ 



Rarrinptnn House. Gresham Street) London EC2V7HE. Telephone 01-606 6474 


Hudson’s Currency losses fail to 

lift spending slow International Paper 

Sharp rise 
in income 
at Mellon 

By James Scott 

TORONTO, April 11. 
WHILE Hudson’s Bay Company 
of Winnipeg does not expect an 
economic resurgence-in L97S and 
anticipates only a year of slow 
growth in consumer spending it 
is optimistic about long-term 
prospects and plans an increase 
in capital expenditures this year 
to SCSOm. from $C43m., accord- 
ing to the annual report. About 
SO per cent, of the money will 
be spent on oiercban dising faci- 

As reported earlier, profit for 
the year to January 31, 197S. 
was SC29.Sm, (8US26m.) com- 
pared with SC24.Sru. a year 
earlier. Sales were SC1.42hn. 
fSUS1.24bn.) compared with 
$C 1.34 bn. 


NEW YORK, April U- 

Home Oil sees 

earnings rise 

CALGARY. April 11. 
HUME OIL expects continued in- 
creases in earni/iss and cash 
How in 1978 as a result of higher 
•prices, increased production and 
improvements in mining opera- 
tions. the company stales hi the 
annua! report. 

Home plans to begin this year 
a pilot tertiary oil recovery pro- 
jrt\ a, ;hf: S»on II» : — tin- - \'»i 1. 
the company’s largest producing 
oil field. 


world’s largest -^aper manufac- 
turer, to-day reported ‘a 19 per 
cent, increase in first quarter 
profits despite- a special charge 
and foreign currency losses 
approaching S5nu. 

The company’s net earnings 
to the end of March of SSTJtai. 
or $1113 a share on ■ sales of 
$95Sm- wilt strengthen expecta- 
tions that earnings this year may 
come close to $5.60 a share. 
Earnings fa"i year were down S 
per cent, partly, because of a 
poor first half, which manage- 
ment was disposed to blame on 
the weather. 

Thus International Paper was 
Widely expected to improve on 
last year’s first quarter and it 
has managed to do this despite 
infinitely higher foreign currency 
josses. In the same period last 
vear. these losses amounted to 
$400,000 but these leaped in the 
1978 first quarter to 83.8m. In 
addition the company suffered a 
$lm. charge foiowing its early 
redemption of a Swiss franc 
bond issue to reduce exposure 
to Pp.-v fluctuation. 

These currency setbacks were 
partial i.v u if set 'by increased earn- 
ings from land sales which 
amounted to SlLlni. compared to 
SS.Sm. in last year's first quarter. 

Overall. International Paper’s 
first quarter figures will be seen 
as a solid performance, but not 

one which necessarily pbirits to 
a year in which the company will 
outperform the paper manu- 
facturing sector. 

Mr. J. Stanford Smith, chair- 
man and chief executive officer, 
claimed to-day that * tight- con- 
trol of operations" had enabled 
the company to overcome weather 
related shortages 'and to meet 
increased demand for many of its 

** Demand was strong for wood 
products, coated publication 
papers, uncoated white papers, 
newsprint bleached board, multi- 
wall bags, chemical cellulose and 
health care products. .This high 
level of demand, has permitted 
needed .price improvements on 
many of these. items," added Mr. 

However, he went on to com- 

plain that “basic cost pressures 
o nthe forest products business 
-continue. The company’s vigorous 
cost reduction programmes have 
not fully .offset increases for 
labour, materials arid enemy, and 
much needdd price; increases have 
not been realised in the market 
place on. some major product 

“There have been excess in- 
ventories of commodity paper 
pulps in Scandinavia, where rhe 
inventory builtf-Up was govern- 
ment subsidised, and in Canada, 
as a result, prices for commodity 
paper pulps have been below 
levels of a year ago. 

However, world inventories 
have been reduced by nearly a 
million tons in the last year, with 
more than half of the reduction 
occurring in the last four months. 

Rohm & Haas looks for recovery 

ROHM and Haas is at least two 
to three years away from restor- 
ing profits to 1974 levels when 
net equalled 10 per cent, of 
assets, according to group vice 
president, .finance. Mi:. J. 
Lawrence Wilson. 

The chemicals concern experts 
to report that net income for Uie 
first quarter matched or sur- 

PH1 LADELPHI A, April It. 
passed the operating income or 
S11.9m. or 93 cents a* share in 
the year-earlier period. Mr. 
Wilson said. The first quarter 
net will, however, “definitely 
surpass " the final ‘net of 811.2m. 
or 87 cenis a share in first 
quarter 1977 which reflected a 
$700,000 loss from discontinued 
op*‘*-‘ions from health products. 

NEW YORK, April 11. 

FIRST QUARTER results from 
Mellon National Corporation, 
the parent company of Mellon 
Bank, show 2 substantial, in- 
crease in the rate of progress 
reported last year. Operating- 
net income for the quarter has 
-Jumped by 18 per cenl. "to 
SI 9.7m, lifting operating share 
income to 32.01 from 31.71 
last lime. Net income totalled 
318.6m. against $16.4nu with 
share income .after securities 
of -$1.39 compared with $1.67 

In the previous year, operat- 
ing earnings rose 8 per cent, 
hacked by a 9 per cent, gain in 
the final quarter. 

In the first quarter of this 
year there was an Increase., of 
16 per cent. . in domestic 
de nosits -which totalled S5.6bu, 
while foreign- deposits' in- 
creased l»v 13 per cent to 
Pi iihn. - Total lwms were 
$5-*hn, a gahi of $35 2 m. from 
a year earlier. 

At last year's foimh quarter 
stage, the chairman. Mr. James 
H. H 5 "ari ns. commented that 
Ibc higher income at that point 
was due to an untnrn In results 
from both domestic and Inter- 
national banking. higher 
foreign exchange income, nar- 
- row foreign currency losses «u» 
eimitv investments, and higher 
ea mines from trust and lease- 
hold activities. 



^ April XL 

GENERAL HiECTRlC, the- Earnings from sales oE.pawerit necessary, to inject a note, of 
Urges U.S. ■ manufacturer of systems were about the same.s ^itifln.'toto te-dayVreDorL 
electrical equipment,; reported those for the- first qirarterot l977 r : - rintteinari 
sales of JiJJbo. to Lhe first he indicated, while those frotn^^S 16 ;^ 
garter of tins year, up of tedmiral systems ^ 

S4.06bo_ m- tlte same period last-iOBtertais showed feabs- well over^&ft. ^ “ e 


,, .Ktt.^uucs ouu mu .uwi lumuuy u> uic U.J. 

.teSeaiies from operations abroad, economy*’ Ih 1977-. the'eompany 
ha'tf risen, and thar exports from' esimed $UJ9hn. or S4.79 a share, 

•i ■ L 1 _L_. ,v nir^nlas nT.4170,- 

Mr u- nsen, ana mat exports irom -*«. - — 

Mr. Reginald a. Jonw, t ~^ s ^ihe.TTS -were higher than last -Operates oF-317.5tan. 
chairman, attributed much- of 

. today also .reported ea'rn- 

nse to earnings from consumer "•* '“‘{T 

- ’ ■** - - - But - though GE. last year "1? f . rom wholly-owned sub- 

products and services which ' thougn via last year 

substantially ahead of last yeart'jqinW the select list .of U.S. 

first" Quarter. as worn psmlnw mmnanloc tuith lum (in nF muM':, * “® were up 

first- garter, ^ Were ^earnings: companies with earnings of anTthon 

from the industrial products and than $lbn„ and began 1978 . op 0 f General Electric-Credit rose 
components division. .- . au_ optimistic note, Mr.JonesTelt 17 . per-cent. 'to BlSjpu ... 

.*Vx- -■ ■' 

Brazil steel productioii to 
treble in next decade ? 

Banco Brazil 
moves ahead 


JUG DE JANEIRO. April 11. 

By Our Own Correspondent 

BRAZIL'S rapidly developing 
steel industry will receive Invest- 
ments of S3.5bo. a year betweefi 
197S and 19S1. 

TMnm pt Me*d 

income was 12% higher at €16.8 millions. The 
total expenses of €13.7 millions amounted to 
48.4% of premium income compared with 
47.9% in 1976. 

An increased rate of reversionary bonus has 
been declared and terminal bonuses have been 
improved for policies .becoming claims during 
the next 1 2 months. 



To be presented at the Annual General Meeting 
to be held on 4th May 1978. 

|T is evident from the accompanying Accounts 

that the Company made good progress in 
1977, and in epeft of the three Brandies the.,' 
premium income and die amount of new pre- 
miums written during the year were sig lirficantJy 
higher dian in 1976. The effect of the high rate 
of initial expense associated with new business 
in the Life Branches was mitigated to some 
extent because the downturn in inflation caused. . 
basic underlying expenses to rise more slowly 
than in recent years. The downward trend in the 
rate of inflation issomething which we welcome 
unreservedly and which we hope will continue, . 
not only for the sake of our own business but 
because of -the measure of stability which it 
would bring to the national economy. 

sch sme It was agreed, after lengthy considera- 
tion and full discussion with representatives of 
the Staff involved, that the. wiser.caucse would 
be to participate. fully in the State Scheme. 
Arising from this decision, alterations have been 
made to our own scheme and these cpme into 
operation on 1st November 1977; drey are 
designed to increase the overall level of benefits 
provided by the combination of Company and 
State schemes and to ensure that the two sets 
of benefits dovetail together satisfactorily. The 
scale of supplementary allowances payable to 
pensioners was improved from 1st July 197/, 
and extended to apply to all retirements up to • 
the end of 1976. 

Board Changes 

Mr. Peter M. Williams has expressed a wish 
to resign from the Board at the end of March 
1978 and h'rs decision has been accepted with 
regret Heowas Secretary of the Company for 
many years and has been a Director since 1968. 
Our Investment Secretary,- Mr. R. Clowes, 
reached normal retirement age in January but 
has agreed to continue in office until June 30th, - 
when he will have completed a two yeaeperiod .. 
as Chairman of rhe Investment Protection Com- 
mittee of the British Insurance Association. It is 
our intention to appoint him a Director of the 
„__CqmRpny _wpen h.e reijqquishes. his. executive — 

Life Assurance Premium Relief 

As I mentioned in my statement a year ago, a 
-new system will operataJrom April-1979 under . 
which the policyholder will obtain tax relief by 
deduction from the premium at toe time of 
payment, toeamount deducted being recovered 
subsequently by toe Company from- the Inland 
Revenue. Preparations for the change in system 
have produced an enormous number of prob- 
lems for all Life Offices, and a great deal of 
Management time has been devoted to finding 
solutions which will enable us to continue to 
give our policyholders the level of service to 
which they are accustomed whilst at toe same 
time minimising the inevitable increase in 
administrative costs. 

The new system poses a particular problem 
in the Industrial Branch, -because of the large 
nu mber of pol ides i nvolving frequent collection 
of small amounts from the homes of policy- 
holders. Following discussions ' between the 
Inland Revenue authori ti es. thelnd ustrial Assur- 
ance Commissioner, and the Industrial Life 
Offices Association, it has been agreed that 
individual Offices should be free to adopt an 
alternative system in respect of all Industrial 
Branch policies for premiums .of £i weekly or 
less. It is our intention to adopt this alternative 
system, under which policyholders will continue 
to pay toe Company toe same premium as 
before. Instead of allowing each policyholder 
tax relief through the PAYE system as at present, 
toe Inland Revenue will pay the appropriate 
amount of relief in bulk to the Company, who 
will apply it to increase toe benefits payable 
under each individual policy. This alternative 
system, which will also be available on request 
by the policyholder in respect of any policy for 
a premium in excess of €1 weekly, involves 
complex changes in the administrative end 
computer procedures at Chief Office but keeps 
to a minimum the extra work to be done-at 
District Office and Agency level. 

I cannot stress too strongly toe need for a 
period of stability once the present changes in 
system and procedures have. been completed. 
All administrative costs fall ultimately on the 
policyholders and even a variation in toe rate of 
relief, which isa simple matter under the present 
system, would impose a heavy burden Of 
administration when toe new system is in 


It is gratifying that in each of the Life Branches 
the overall investment yield showed a very 
healthy increase over the previous year, despite 
the inhibiting effects of continued dividend 
limitation and toe lower returns available on 
new investment consequent upon the recovery - 
in stock markets. From the still depressed levels 
at the previous year end. U.K. ordinary share - 
indices finished the year some 40% higher and 
the.F.J. Government securities index was up 

Total invested assets of toe Life Branches as 
shown in toe Balance Sheets increased by 
£15 6_milliqns to £350 jniUions. We placed _ 
"CSTj millions into fixed iriteresf-secunties arid” 
over £ 3 mi 1 1 rons into ord i nary sh ares. Addition- 
ally a figure of some £6 millions went into 
property, including a' substantial acquisition in 
a prime City of London location, and two sgn- 
" cultural properties Tri furtherance" of toe policy 
l outlined last veer. These agricultural acqui- 
sitions wifi remain a relative iy minor constituent 
of our total investments, but we believe they 
will prove over the longer term an increasingly 
rewarding element for our policyholders and 
shareholders. We welcomed the setting up of 
the committee under toe chairmanship of Lord 
Northfield to look into the acquisition and 
occupatidn of agricultural land. The industry 
has submitted evidence that ownership. by 
Insurance Companies, whilst obviously 
growing, represents and will represent an 
extremely modest incursion into this area, and 
that any suggestion toatthls might pose a threat 
totoe interests of private farmers or landowners 
is misguided. 

I referred last year to toe danger that our 
industry might become subject to measures 
involving direction of investment, in pursuit of 
ideological concepts of planned industrial 
expansion. The great bulk of evidence so far 
submitted to th9 Wilson Committee from a very 
wide variety of sources completely refutes toe 
idea that British industry is held back by diffi- 
culties in raising money, on sensible terms, for 
worthwhile projects. Nonetheless, the threat 
remains and 1 feel I must reiterate our absolute 
opposition to the concept. There can be no 
doubt that it would harm toe interests of policy- 
holders and if, as would be likely, it led to a 
reduction in toe flow of money into insurance 
savings the effects on the economy as e whole 
would be detrimental. 

fire and Accident Branch 

Net premiums for the year showed an in- 
crease of just over 20% whilst expenses and 
commissions were 14% higher thanln 1976. 
so that there was a reduction in the overall 
expense ratio. Unfortunately, toe effect of this 
was more toarr offset by the increase in claims 
incurred, and the underwriting results for the 
year show a lass of £218,000 compared with a 
toss of £120.000 in 1976. 

The deterioration in underwriting results was 
confined to the Property Account which con- 
sists mainly of household insurances. Adverse 
weather conditions, increased frequency and 
. amounts of daims.-and the continuing problem 
of under- insurance combined to produce a loss 
of £278.000 against a much smaller loss of 
£69.000 in 1976. The steps being taken to 
improve toe position include rehewBd’empha- 
sis on the need for sums insured' to be at 
realistic levels, and percentage increases based 
. on the > time elapsed since toe last increase .will 
be suggested as policies become for 
renewal. Minimum premiums will be increased 
at toe same time. 

All the other underwriting accounts showed 
satisfactory results, with Motpr-which pro- 
duces over half of the Rre and Accident Branch 
premium income-showing a small underwriting 
profit of £50,000 compared with a loss of 
£9.000 for 19 76. 

After investment inco'me and tax toe' net' 
profit for the year is £139,000 compared with 
£118jOOO in 1976-The sum transferred to Profit 
and Loss Account is unchanged at £50,000. 

Profit and Loss Account * 

The total amount transferred to toe Profit, 
and Loss Account in 19 77 is £1,725,000 which 
is £210,000 'more than in the previous year. ' 
The total net dividend of 8.1p per share is the: 
maximum permitted by legislation arid' is an 
increase of O.S472p per share over the total 
for the previous year. The balance ol profit 
1 carried forward has been increased by D43.000 
to £572,000. 


The Social Security Pensions Act, 1975, 
provides for a new eamings-related component 
of State pension based on earnings from April 
197B onwards. There are facilities to enable 
members of occupational pension schemes to 
be contracted-out of toe new element of State 
pension but in the case of our own staff pension 

Ordinary Branch 

The level of new business was substantially 
higher than in 1976/ toe most notabte feature 
being an increase of over 12% in the number of 
new policies written; new sums assured in- 
creased by over 15% and new annual premiums 
by nearly 17%. The total premium income for 
the year was 7% higher than iriia 76. and invest- 
ment income i ncreased by £1.7 million to nearly 
£17.4 millions. The total expenses of £4.0 
mi|||onsa‘mountedto24.8%ofpremium income 

compared with 23.8% in 1976. 

Following the annual valuation .of toe Life 
Fund, increased rates of reversionary bonus* 
have been declared and terminal bonuses have 
been improved for policies becoming claims 
during the next 12 months. 

Industrial Branch 

Compared with 1976, new business showed 
an increase of nearly 12% in sums assured and 
over 15% -in annual premiums. Total premium 
incomeTncreased by nearly 11% arid investment 


As I said at the beginning of this Statement 
.197.7 was a good year for the Company, and 
our sincere thanks go to toe Management and 
Staff in all parts of the organisation for what 
was achieved. One of the highlights of the year 
came in November with toe opening of a new' 
_Fiel<J Staff Training Centre in Chief Office. The 
Centra 'includes lecture- rooms, "syndicate” 
rooms, and a multi-purpose video/ projection 
room; its opening marked the culmination of 
a long period of careful planning, involving 
discussion and co-operation between Manage- 
ment Union and Staff. Time and effort spent 
on projects such as this not only brings a sense 
of satisfaction to the individuals concerned, but 
holds out the promise of future benefit for toe 
Company as a whole. 

In sharp contrast to my remarks in toe pre- 
vious paragraph, 1 regret to say that proposals 
for outside intervention in the operation of the 
industry conti nueto necessitate the expenditure 
of much time and effort- particularly at senior 
Management level-on matters which are irrita- 
ting and frustrating to the individual, and which 
add to the expense of toe business without 
offering any prospect of compensating advant- 
ages tor policyholders, shareholders or staff. 
Legislative requirements within toe breiad field 
of "consumer protect on" emerge with depress- 
ing frequency as more and more aspects of the 
conduct of our business are subjected, to 
Government control and supervision. 

During toe second half of 1977 much Man- 
agement and Union time was absorbed by a 
dispute arising out of a daim by the Field Staff 
Union that "air members of the Producing 
Grades should receive a basic salary increase 
within the limits of Phase II of Incomes Policy". 
This daim covered a total of some 2.800 
persons, each in receipt of remuneration which 
reflects the amount of business for which the 
individual is responsible. Because of toe growth 
in the Company's business during theoperation 
of Phases I and ll, toe increase in average 
earnings for the group as a whole was nearly 
twice what it would have been had they beeo in 
receipt of fixed salaries plus the maximum 
Phase 1 and II increases. The dispute was 
referred to A.C A.S., a rid in d ue course to a Board 
of Arbitration, whose decision to uphold the 
Company's resistance of disclaim was. received 
in January this year. It is noteworthy that the 
volume of business continued to grow during ■ 
the period of the dispute and in toe early months 
of this year; this is due in no small measure to 
toe responsible attitude displayed by all those 
involved. Some problems remain, but none that 
cannot be solved by patient discussion and 
negotiation In an atmosphere of integrity end 
mutual trust The Company had a good year in 
7 977 and, provided that the effort to work out 
the right solutions to our problems is not 
allowed to disrupt toe progress of toe business, 
we can look forward with confidence loan even 
better year in 1978. 


Chief Office (and Registered Office ) Oxford Street, Manchester M60 7HA 

ffcjpswrt Number 1364C-Englwd. 


fiirn«*iire. paper, and metal 
coBiponpe<s grono epnounrad 
net earning* for lire first 
quarter of RS rf>n1s n share 
nea i n«d 79 ren 1 ® previously, 
reports AP-DJ To*al net eam- 
•npji increased to S’™ ? m. from 
fliQfitL. sales tn $ 522 m. com- 

pprorl -with $41 6m. 

Th» cmrronnv said that about 
two-thirdc of the sales increase 
for the onarter reflerte** oper- 
ations of Gulf Consolidated 
Services. acquired last 

Conrac earnings fall 

Mr. Donald HL Putnam presi- 
dent of Conrac Corporation 
said that first quarter net from 
operations was about 47 cents 'a 
share down from 74 ’cents a 
vear ago, reports \P-DJ from 
New York. Non-operating in- 
come was about 1 per cent a 
share against .il cents a year 
ago. The board will declare a 
10 per cent, stock dividend 
after which the quarterly divi- 
dend rate of 20 cents will be 

This, according to the plan- 
ning minister, Sr. Reis Vellosp, 
accounts for about 8 per cent.' of 
Brazil's gross fixed capital forma-. 
turn, and will allow production 
to be tripled in the next decade.- 
In , 1977, approximately: 
S510.3ra. were spent -on the steel 
programme, and this ; year, 
Sl.OSSbn. will he laid out.. Last 
year’s outlays represented 19 .per 
cent, or the total budget of the- 
National Economic Development 
Bank (RNDE). 

In fact, while world produo-, 
tion or steel has 'been . Falling, 
Brazilian production has shot 
ahead. In 1977. production .til- 
steel ingots reached 11m. tonnes.. 

Imports fell lo 940,800 tonnes, 
and? exports rose to 300,000 
tonnes, reducing the steel trad- 
ing deficit to 5 per. cent. ,of 
apparent consumption. 

There are two views about the 
: Government tendency to opt fQT 
vast steel projects: while Gov- 
ernment ministries favour them, 
technicians from the Brazilian 
Steel Institute (IBS) maintained 
at the eighth national steel con- 
gress last week that they . were 
“'heavily onerous in terms of 
infrastructures and., operating 
costs." (New projects like the 
Acomlnas . and Tubarao steel 
works involve joint ventures with 
foreign steel majors and .total 
loans of several billion dollars V. 

• Despite this, however, steel 
enjoys 65 per cent rif the 
financing operations approved by 
the raw materials programme 
f 3345m.). in direct credits from 
Brazilian state banks. . r 

RIO pE JANEIRO. April -1L 
THE BANKof Brazil — part State, 
; part-prrvately owned; now enjoys 
resources. *:■ . . oF..~ . C&543bni 
(332-25bn_)— a growth of ,4&3 oer 
cent. /compared with 1976.- . 

The bank’s, net profit totalled 
'9514.4m. — an increase of 33.3 per 
cent. 4 compared ... with 1978. 
-Profitability ratio, on its own 
capital was 17.26-per cent, with 
expenses totalling Sl„55btu. over 
70 Der cent, more than 1976. 

The December 1977 total of 
deposits of S5L87bn., represented 
a growth of 25 per cent coin- 
paced with. December 1976. with 
thd lion’sr share going to public 
bodies -(S3bn.-^or 52 per cent.}; 
Private deposits (oF S2.07bn.) in- 
creased. their weight in the total 

Tbe majority of Bank of Brazil 
loans (a total of S19.49bn.) were 
Channelled: Lnto production— 
indusrtial on .agricultural — these 
loans increased by 47.4 per cent 

Du Pont monopoly complaint 

THE FEDERAL Trade Commis- 
sion has issued a complaint 
charging that Du Pont,"- the 
chemicals major, dominated the 
U.S. titanium dioxide pigroept 
business through unfair means. 

The complaint, which Du P.ont 
has 30 days to answer,, .seeks 

Dictaphone optimism 

Dictaphone Corporation, the 
business machines maker 
expects to report record earn- 
ings and: sales for the first 
quarter with profits Improving 
at a much higher rate than 
sales, reports AP-DJ from New 
York-. Mr. E. Lawrence Tabh, 
chairman and chief executive 
said earnings per share win 
Increase to more than 60 cents 
from "36 cents a share a year 
earlier. Net income from 
operations will be about 40 per 
cent, ahead of the 1977 first 
quarter and the company also 
expects to pick up about 15 
cents a share from foreign 
currency gains. Improvements 
in operating, margins resulted 
mainly from a higher rate of- 
dictating products and systems 

divestiture of tWo Du- ‘ print 
ire the 

titanium plants. They are i 
Delisle, Mississippi, fadHty arid 
either the New ' Johnson vi He, 
Tennessee, or the .Edge' Moor, 
Delaware, facility. / 

It also asked that- Du Pont 
provide royalty-free licensing of 

all technology arid know-how 
used in connection with produc- 
tion of titanium dioxide. 

- The complaint, after a two- 
year Investigation, * alleges - that 
Du Pont accounted for 40 per 
cent. of all domestic * annual 
production, which -In 1976 ; was 
■valued at more than $6Q0m. 

T 'fie market is highly .concen- 
trated. with four; companies 
aciohnting for 80 per cerit^of 
th^ production. Titanium thotode; 
is 'used to whiten and brighten 
paper, paint, plastics, textiles 
and other products. 

The ' ‘complaint alleges that 

.Da Pont unfairly . used its 
dominant position, siz e - an d 
economic power in an attempt 
- to monopolise the market - 
Replying to the charge from 
the company’s Wilmington, Dela- 
ware, headquarters, Du Pont 
chairman Mr. Irving S. Shapiro 
said the charges are wholly with- 
out .basis.--- The .'Company will 
contest allegations^ in the cora- 
, plaint and- will -'ask the commis- 
' slcftr'ftf fc^edfte hriamg^of the 
maft'erso that this issue can be 
settled un its merits as promptly 
as possible, the diairman said. 
Reuter. - 



Yankee bond for UK 




Hrat Qmrtir 

Cbrysler Turkish sale 

Chrysler has sold lbs 
interests In Chrysler Sanayi 
A.S. to (fie Turkish share- 
holders of that company. 
AP-DJ reports Trom Detroit. 
Chrysler Sanayi was formed in 
1962 to assemble arid manuTao 
ture Dodge (rucks for (he 
Turkish market, arid Chrysler 
owned 60 per ceuL, with three 
local distributors of Chrysler 
bolding the remainder. Under 
full Turkish ownership the 
company will continue as a 
licensee and . assembler of 
Dodge tracks. Chrysler did 
not give a- price ou the sale of 
its shares. . 

WITH MARKETS in the dollar 
and Deutschemark sector very 
quiet yesterday, the main news 
of the day came with the 
announcement by the Chan- 
cellor of the : Exchequer, Mr. 
Denis Healey, in his Budget 
speech to Parliament that the 
United Kingdom would be rais- 
ing money lo the New York 
marker for the first time ever A 
two tranche S350m. bond will be 
arranged by Morgan Sianiey with 
Salomon Brothers and First 
Boston Corporation as co-lead 
managers. A 3200m tranche 
carries a seven-year maturity and 
a 3150m. tranche rarries' a 15- 
year raaturily. Pricing will be on 
May 3. 

As is usual when a borrower 
approaches the New York market 
for the first time, *he U.K has 
requested a rating from the two 
leading U.S. rating agencies. 
Moody's and Standard and Poors 

Both have given the borrower . a 
triple AAA rating. Other Euro-, 
pean countries to enjoy a triple 
AAA rating from both agencies 
include France, Norway . and 

-The sterling sector was hit 
yesterday by the announcement 
tha' the Minimum Lending Rate 
would rise a full point to TO per 
cent Most names shed a quarter 
of a point but with the news 
coming so late, there was very 
little trading. 

The Deutschemark sector was 
slightly easier yesterday. The 
DM200 m. for Spain was priced 
at par by lead manager Dresdner 
Bank and was being quoted, in 
pre-market trading, ai a discount 
of: two 'and a-haif points. 

South African Railways is 
raising DM40m. for four years 
on an indicated coupon of 71 per 
cent. This private rlacemeot is 
being arranged ov .Berliner 
Handels and Frankfurter Bank. 


s- - 

Revenue 186 Jm. 

Net profits . 53m. 

Net per share'... ' 055 



.; 0.49 


nm OHwtor 


Revenue 102.1m. 

Net profits .'72,000 

Net per share... — 


s • 





«n» Quarter 


Revenue : ........ 1993m. 

Net profit® 7.4m. 

Net per share... 0.44 

WI7 . - 





First Ocarutr 


Revenue -485.2m. 

Net profits 25.2m. 

Npi per share .. 0.70 



440 5m. 

T/jfs announcement appears as a matter of record only. 

' April 10, 1978 

Allegheny Ludlum Industries; Inc 

has purchased 6,500,000 Ordinary shares of 

Wilkinson Match Limited 


Svenska Tandsticks AB 

The undersigned assisted Allegheny £udlum Industries f ihc . 1 ■’ \ 

in the negotiation of this tnpisaciioiT. ■ ■ ‘ ■' ‘ 

Smith Barney, Harris Upham & Co. 

Incorporated-"' ■ . . , * • ' Vrv i 

V p lit* ' * 

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i- ifrjj&s-- 

arp profits setback for Solvay 

Mr Caw *uchan 

BRUSSELS, April lli, 

SOLVAY, ’the chemicar group Solvay’s 115 year oldhiatory, has Nevertheless, Solvay has been since 1968, i$ not expected to do 
w inch Is Belgturo y s^cond. largest hit production. investing; heavily in the U.S. so this year either. This is 

industrial concern, btt ; disclosed The- pessimism of the Sohfay chemical and' petrochemical because the company is trying to 

th« Hr Jast_year ^were management, who .will not sector, and at the end of last make .good the accumulated 

_ . .. weQ^.flQWn '<m^1ae ; ;BJraA.7SD. announce full 1877 results until month It announced the setting losses of the early 1370s. Last 

Bywia curry tsuto.)recoiM in^iB7B, Md mid-May, Is shared by analysts up of a Joint company, Inteox year’s ■ profit reduced this to 

PARIS. Anri in t«t «s 1976 dividend Off here, who have even been - fore- American, making hydrogen per- BJrs^Jfim. and this year’s 

«».m TMTTVTiw . wiUcertanUynot be moeased. casting a cut in dividend. The oxide In Texas, in collaboration modest profit will help further. 

Wle world's announcement has been group performed well for the wttr La porte Industries Ltd. of Deliveries last year worth 

of reluctantly made by Solvay as a first half of last year, with him- the U.K. which has been a B_Frs.l2.65btL, stayed at rouEhly 

a trade umon forecast over rising .by 10 pea- cent and traditional industrial partner of the 3976 level. But ACEC exera- 

fey 1W7 by .-a - , that'the group’s profits last year profits up too. The second half the Belgian company fives, draw enuninppm«it f inm 

WOU1 ^ in *«* ?“® to BJrs-Sbo.. less SioSle fSf ‘ * * •* 

* an *-5 h * t *** TS 1 «° S 01 ^- addition, Solvay has ATELIERS de Constructions year rose to B-F^S^froS 

Fraje^e up 10 per cent Thi s for ecast was recently had to lower its soda ash Electrigues de ’ Charleroi BJrsJLL2ba. 

^. ttp nas) on .made in the- -context the prices to stay competitive with (ACEC), the Belgian electrical 

y anaamer current, strike -by -some iJW-800 American supplies to the Belgian machinery manufacturer, has + 

** 8ue - salaried clencal staff throughout market The company used to announced a lower profit of . 

WiStoMwi ”5* ^r g * an *?^f : ^«* They a Tirtna3 supply monopoly B.Frs.71m. ($22m.), compared HOLDING company Sofina SA; 

A? Ej ®?^ deman ^g a Of tins Ingredient to the Belgian with BFrs.128.8m. in 1976. This reports-, a net profit of 

Frs-l 34-5m . : At Frs-2.l4bn, sales pae, a cut In weekly working glass industry, which in recent is in line with the forecast made B-Frs.570m. (51&2m ) for 1877 

arantAPA vann Litf ^ a*. TY o L« - ■ ' V 4 . ' . _ - ** m ' . AP,1 » 

_ - - • • ■ _ ' _ \ — r — _ p 1 “ O'— J wmuu AU J WkCiiL MX AAX*G WXUJ LUv 1UAG14UV UI4UG DJTIMiVIU. UlQ^ni. I TOT llfj 

were^nmelS per cent higher.- ^° nrs fr om 40 t o 38, guarantees yeans has turned to the U.S. for by the company when last against B-.Fr8.566m. previously 
v - - e ™? loy ? <m4: p 5°^* cheaper supplies. Solvay cut Its November it announced a first The company has already a 

Mafera ahead ?S TO: L3Si b ^ e P 11 ®*® at ^ 151,111 01 ^ year 10 haJf year l0 ® of B.Frs.74m. nounced a net dividend 

■ afatra. i-wiiAu V ^ .“ent The strike, _the prevent the closure of its Belgian The Charleroi based company, 

LJ:*^ ?”« *«* >*■*“» “*EMy ° £staff «od« a* pl»nt. which has not paid a dividend 

cm the Paris Bourse -since ' • ' - • " — : * ^ 

<3*ristnaas, is well on .the way. ww -■ •— _ 

Holmens Bruk sees sales rise 

FrsX4iii'0f eoosoSdiiM ai«. - ; ':r : ■ ' 

writes ; Da vfi^ CjBLtry. - .. t WILLIAM DOLliORCE STOCKHOLM, April 11-. 

^ HOLMENS BRXJ$ r . Jl.*rope's a Bnvtten in Kr.lOOm. bond issue on the 

sales ' -have ' already ben largest newsprint mainifacturer, September. Swedish market at 10 per cent, 

registered. Last year tumt hopes to increase salw by 15 , Th® KrAOm. i«e-tax figure for and taken a 15-year, Swiss Francs 

romnuiv V»Im nuu^Li tot cent, thic vmt- nnd-tr» .return 1977 , made on * a turnover of 30m. bond loan at 4JS per cent. 

The Charleroi baaed company, B.FrsJ215 per share compared 
which has not paid a dividend with KFrs^Ofi for 1976. 

Holmens Bruk sees sales rise 

registered. Last year parent to increase sales by 15 T() J“ e Kr ^ 

company sales reached per cent, this year and- to return if,' _? aae 

0 MT.«Klut rv.. o 11 , - , . • . .. INT.l.^SDn. i 

, made on - a turnover of 30m. bond loan at 4^5 per cent 
43bn. ($31 5m.) was struck The management considers that 

Pirelli losses 
mount as 
demand slumps 

By Paul Betts 

ROME, April 1L 

per share profit was Fr&24ff. . . a - tvr * awn * r: 

The company is proposing a Clat1011 and , inte 
pay-out of - FrsJ29J0 -per share which the manager 
together : with Frs.5.10 per ofEset by a correspo 
share for the 1976 finan ri^ in operating profit 

* KHnis ^ **“■» This forecast 

be rr*.*J-Sv. * iTpru>nrl< nn tka M 


oci» a. Jvr.auui. rue m insure- "‘“'“wu ««* uuieiiureu a i oc+ v ~,_ - i — 

ciation and interest charges, currency losses on the long-term tion of . the second development [■*£> 2bn. thp P ^P«fr,„ D 0f 
which the to foreign debt. The final pre-tax stage has been postponed from oLSft year - , 

5" ' o£ 1980 ,0 ^ end ^ crSSTby” 1 !? 5* 5£ % 

moper,ttag proflt- , _ y ea^ “- 0,6 P U£ “iuidit, i s reported to have Jfc7fe rt 1 iygW-l4 

This forecast,- . - however, it alBo exdudes some Kr.32m. Improved. The 1977 balance SSw a JS a S, l l S" eet, ? , S ■“ 

depends on the continuataon of in . interest charges on the sheet shows only a. modest rise wniie sales recorded 

the price stability, whit* print- Kr.660m. Braviken investment up in inventories to Kr.323m. and in the first 

ing papers have enjoyed over the to the September start-up, which the management reports that it i e f r * ,V iere “d been 

nnct twn tmnrc urftllA fYio nrim hour. Koan nA fi<tn+ n ^ l«a«. r.«v fop. ohin tA fiVnuA 4-Ur, » SulISLanilai aecllDfi in dpmnnrf 

idwi' iwmtiBv TiHrtte w P® 81 two years, while the prices have been activated. Completion has so far been able to place the 5.J2iSf t S? T„ dec “ e , m demand 
a Sp ■ teSSse ? f other W qualities: have of the first stage of the Braviken Braviken newsprint on the mar- d ™« 

The group's investments last 

our . Financial 

cSSE Holmans mills remains un- reflected in the doubling of the new plant, however, make up a neaaways in the export 

ar TM-oflt efcWWH,. despite the.30:per cent interest charges to over KrJfim. considerable burden at a time oi plants ^ and machinery. Its 

Granges offers for Wirsbo 


■ y^ 1 *“ annua i capacity of 4m 
tyres in Algeria, and also 
secured a contract for the supply 
of machinery to the Soviet 

Industrie Pirelli is currently 
involved in a major restructuring 

~r ,-Mt jut ' 'Ttfg** MMmMnir UtTbUllC UIC LCUU U1ICI»L UHUKCB 1U UVCJ. 4U^UU1. UOUhlUtii i&UitT UUllffiU Al <L LUUC ~ . . 

in newsprint; Capacity Since the beginning of this when the mills cannot be ran at recently signed a 

xNjj 5% L.r- - 877 introduced- by the start-up of the year Holmens has made a full capacity.- draft contract to build a plant 

to -frsMiXsaui. ($y.5m.) from 7 . with an annual caoacttv nf 4m 

Fr&4&2oL - -Bn£ the .major in- . . .. ^paciry ot 

du&trial enaplre has lifted its 
dividend from . Frs.17.25 -to 
FrsJL8J3 with net earnings 

rising -to FrsJJr.95 . innusme FirelK is currently 

from Frs.42.lm. No fet alis of BY OUR OWN CORRESPONDENT STOCKHOLM, April' U, mrolved in a major restructuring 

the snare sales profit is given. .•'•■. * programme aimed at, amonv 

The eaip^by -rpewbee* pte , AFTER Aazmodniclhs. ju record market rale. The offer is con- in its annual report The esfi- other things, consolidating its 

revalue i»Krt’ of- Its' assets, by 1577 pre-tax ’ Jok' l trf‘ RriWlm. ditional on acceptance by share- mated net profit per share was financial position- The Italian 

Fr&293J$m* or some $&L5m. rsi75m . , act pvidav and uassine bold ers owning 90 per cent of Kr.17 compared with Kr.15. operating company of the 

Baron Edouard-Jean Empaiu aSh f«r tJhie stock. The largest holding Group sales rose by 18 per DiuUop-Pirelli Union has seen 

has handed over the chairman- jjjj- ^J^sd^-^veax ^running 15 113 *8 bands of the Lager- cent <to Kr.l.7bn w compared with its total indebtedness rising froS 

shrp of the grtnro fo hM close S S«rt SrS» SD^sh engineer- crantz family. The Svenska Kr.l.4bn. in 1976. Sales outside Lire 290bn. in 1972 to nearly 

colleague Rene Engen for. an > - ^ Handelsbanker pension fund and Sweden have doubled during the Lite 447bru including Lire I45hrf 

Indefinite, period, 41. company 2 subsidiary of the Skanska last three years to 61 per cent in short-term money 

communique said yeste^y. remaining stock of Cement Construction Company of total sales. Markets outside reduce the interest rate burden 

Baron, Empain said Us ^Wte_ ^ ^This Mn- are the other big shareholders. Sweden accounted for nearly 80 on its accumulated debts the 

«n iIS I 2Uf* , * sed;W “ to ■**”?- eeni'-manirf^W^^maiiily pipes Wirsbo made pre-tax earnings per cent of the increase. Most company launched a Lire 50bn. 
up Ins post. ■.-••- f 01 ; wa ter heating andi'sani'^w of Kf-2.6m. on a Kr-215m. turn- of the group’s -expansion was due rights issue last year. 

‘ : •"•■■■ . , 7 :■ installations -I ,»'• over last year. to higher sales volume. 

Sperry Rand dbra^..^. bn ^ h A - t Dalmine lifts 

The Sperry ^Jm& gnmp oi Oie . Wirsbo Board is recommeqffirfg ASD^ improvement t between *-Kr^bn. And -Kr^.lhn, . .. , 

115. :ha% decjd.ed^to' »do^fi dew^,.,. to. f, ^areboluerS. was. - descr.ajro'' Astra, the' Swedish pharma- while earnings are expected to CRDllSI 
Its Remington, ^ectric. shaver by a Gr&uges^ spokesman^ £fi ceutical group, raised its pre-tax keep pace, reaching Kr.lSOm. to - * ... 

factory at _ Hutenheim, , fa , illustrating the ■ offensive Ifa uik- ea rnings by 13 per cent -in 1977 KrJ40m. this ' year compared , MILAN, April 13, 

Eastern France^ . witiito . the ingwithm th e Jianagcm^t For ^ (S255m.) from with Kr.llBm. in. 1977... . ' THE SHAREHOLDERS assembly 

next -'U montli. becaure- of - the past year, .under m new Kr.lOSm. in 3976, writes John Sales of all the divisions ^ Palnune Spa has approved a 

excessive operating cotta, it manning ^ director Mr. Bo walker from Stockholm. Taking showed up well last year, phar- S®P. ltal increase to L226Fm. from 

was learned yesterday, AF-DJ Abrahamsson, ^urangw had been into consideration changes in maceuticals increasing by 16 per L25-2bn. The operation, aimed 
reports from Paris. TbeplaiiL. working to eliminate Its loss- accounting principles, the im- cent, to Kr.l^ba^ chemical pro- at- making available large funds 

which employs .some - 400?. making steel operations and pavement iq comparable earn- ducts by 14 per cent to Kj^03tiu, for new . investments and for the 

workers, stopped - J manufao- release resources , -for forward- jngg f^ r t), e year -was approxi- and -those of the Varia division organisation of the company,, 

turlng hatr dryers hist summer,. • looking investments. mately 20 per cent by 43 per cent, to Kr.lOBm. The ^ be carried , out through the 

and the management tried to Gr&nges already holds 37 per Group earnings were favour- group’s R and D costs increased 1 ®^® S of 4®3-2m- shares of par 
minimise costs by redaring the pent; of the Wlrabo stock and is. ably influenced . by the - rapid from Kr.l55m. in 1976 to FaJ ? e -WOO to be offered In 

working week to 38 hours In offering RrJZ'W . a share for the development of the' Varia Kr.l85m. The Board reeom- °Ption to the shareholder in 

of health caused. him to give 
up fais post. 

turing hair dryers hist stunmerv looking inv« 
and the management fried ter Granges 1 
minimise costs by reducing the pent; of the 
working week to 38 hours in offering Kr. 

December and offering early [reniainder, a -price which is only -division and the effects of the mends an unchanged dividend of I themeasure of eight-for-one. 


Slightly above 


• "Oc*. ’ 
Clow' YoL 

















T nn 



•tan. I Equit; 
Close Vol. * eliwa 

- I. “ i H4 

— - 52403* 

- - fS68 


current Swedish devaluations, Astra said Kr.5 per share. The .capital increase is ex- 1 

peeled to be chiefly subscribed 

by Finsider. the* Italian State 

holding which controls Dalmine, 
.£ rt ll Saana* a 1 63 ding maker of steel and 

11311 nelltS issue pi ?^ Shareholders were also 

aa b“ 1 ^ told that the company's loss for 

1977 amounted to L37-2bn. 
fA f VIENNA, April 11. against profits of -L1.05bn. ' pre- 

lie Austrian Sch-20.6bn- • The position renm-teri ir« 

is increasing “ debtors ” showed a rise of were influenced^ bv ^hvinkW 
Sch^Om: to SchJUbn. to ScluSbn. with S 

Interunfall rights issue 

VIENNA, April 11. 

INTERUNFALL, the Austrian Sctu20.6bn. ■ The position 
insurance company is increasing “ debtors ” showed a rise of 

its . capital by SchitOm to SchJ.lbn. to ScluSbn. with Ifcdv and abroad al 

Sch.l2Dnu by way of a five-for-one affiliated banks accounting for ^ of Sack 

right. Issue ^ 150 p er cent. Gross AUl of - *»***._ common™ 

premium revenues last year were dend of 8 per cent, is paid 
up" by 10.3 per cent to Sdu2L7bn. ★ * * 

. The growth rate in Austria was A new Austrian 


AP-Dow Jones 


: Stole Darby Holcpnga Limited 

BONU^ issue 

Subject to the consent of the Com- 
pany at ■ an Extraordinary General . 
Meeting, the bonus issue of one s hare 
for each one share held, referred to 
in the Interim Report; for the ax 
months ended 31st December. 1977, 
will be made to sharehoWere n* 
gfetared on the dtgtonof Manhtff 

of the Company at the dm® & 

buainess on Wednesday, 3rd May, 

The notice convening the Bctra- 
ord inary General Meeting of the 
Company to approve an increase in 
the authorised capM of the Company 
and to approve the bonus issue will 
be despatched to shareholders in due 

. By Order of the Board 
- ■ Secretary 

12th Apr iJ/-1978 


AIc*n Australia ovc USB SSi 

AMBV 8PC 1887 flfii 

Australia 8Jre 1992 94i 

Austnllan. It & S. Hpc VC 87} 
Barbara B&uk 8ipc 1G»3 — 87 

Boucatar 8ipc 1882 8 n 

Caa. N. Hnflway .Sii>c ifiaa 97i 
Cnedft National Sivc ms... 87i 

Denmaik. Sipc 3884 in 

ECS 8dc 1885 ■ 884 

KCS £{pc 1887 .-858 

sra.KpC'are w- 

M Upc 1889 . — 88 

Ericsson Sine 1889 B5S 

5«o Sue iffiS Nov. .. ...„ 1«U 
Gt. Lakes Paper 53pe 1884 88] 

Hataenley 9ipc tBBS 8M 

Hsjlro Qnebec 8pc 1982 ... ' BU 

ia «PC MW 971 

OS Canada Mpc 1988 .... IBS] 
Marmnhm Bloedel 9pc 1993 9 « 

gfsaey Persnson 0ipc *01 98 

Ulti*Un«*DC-!988 HU 

Midland lot. -Tm. 8ipc « 98 

Xattomn Com 1B± toe W? M 
Nartonal Wstmnscr. 9pc *8fi 181 
WwBftuwJUod 8pc 1988 .. 100] 
Norses Korn. Bk Btpc aa2 m 

Btertpe 8JHC 1989 w* 

NOttk Hydro Sipc 1892 ... M 

Mo «dc .Uffl HU 

Pima Antonomes 9pc 1991 Wi 
Prov- Quebec 9oe 1995 . 9Bi 

Pnjv. Sa&udL Sine 19S8 9K 
Reed Hoternatfimal 9 pc lSOI Ki 

RHM Spc 1992 ._ 93 

Seteetion Inst Kpc 1989 ... Mtt 
Kaol Enswwa spc 1991... 99{ 

SKF SPC. 1967 913 

Sweden Offiimi Si pc 1987 S3» 

UaJmJ BtsnriH Spc 1988 — 933 

Volvo SPC 1987 Uarcb 921 

NOTES . . 

Australia 7|pc T9M Rl 

Ben Canada 7*pc 1997 ..._ 95 
Br. CotarabU Hyd tipe « 9fi 

Can Pac. 8ipc i9M 994 

Dow Chemical Spc 1988 97» 

BC5 7} pc 198! 964 

ECS Sipc* 1889 «f 

EEC 74 pc 10S2 963 

ESC 74k 1834 954 

&B».Gmzett Sipc ISSf ftSJ 

GaramKen Ylpc W82 973 

K odrams 8pc MSS 971 

Mlewno »pc M83 Mi 

Montreal ertun. Slpc 1981 U>1 
Now- Brnnswick 8pc 19S4 ... Ml 
Net? -Brans. Frav. SSnc W lKtt 


New Zealand 8*pc loss ._ 



■ 09 

Credit Lyonnais 1982 Bpe... 


Nordic tor. Bfc. STpe I8W 



DG Bants l?R? 7 rS^pc 


Norsk Hydro 71 pc 1983 



GZB I9S1 Shtpc-.i 


Norway 71 pc 1982 




Ontario Hydro Spc 1987 

Mi - 


Ltoyrls 1983 7!pc 


Stager Slpc 1982 ...» 



LTCB 19B3 Spc 


S. of Scot. Elec. S*K 1981 



Midland 1982 SPC ...... . 


Sweden iK’daml Tine 1982 



Midland 1987 7U K pe- 


Sired tsh State Co. 7£pc H2 



niCR 1983 7Jpc 


Telmex »pc 1984 



SNCF 1983 Hpc 

Volkswasen 7]pc 1987 

Allied Breweries 10]pc *90 

Citicorp I8pc 1983 

Conn au Id* Hpc 1689 

ECS 9fpe 1989 

BIB Mpe 1888 

ETB Slpc 1995 

Finance for ImL Blue 1987 
Finance for tnd. 10 m 1888 

Pisans ujjpe 1W7 

Gestetner Upc 1989 

HfA 19pc IMS 

Rowntwe IWpc 1988 

Sears IWpc 198S ..... 

Total OH Blpc 1SS4 


BPCE 5*pc 1988 . . . 

BNDE Sipc 1BS6 

CFE HPC 1998 

Denmark Sioc 19S4 

ECS 5}pc 1999 i 


Electrobras Blue 1968 

Enratom Slpc 1967 

Enrofima Sfpc 198S 

Finland 54 pc 1936 

Fo remarks 54pc 1990 

Jfesico Spc 1985 

New Zealand hdc 1&9S ... 

Roman Hpc 1389 ... 

Norway «pe 198S 

Ptmimrinw Hoc 1985 

Ratrtar UnkW 51 pc 1988 

Sweden Spc 1998 

Taneraamobahn 5*w 1993 

Trtmdhetni Sfpe 1988 

TVO Power Co. Boo 1988 - 

Venezuela spc 1988 

World Bank Hpc mt 

Bank of Totato UBl 7t5i6PC 

BFCE MM 61 oc ; 

BNP J9S0 6t | tpc — 

CCF 1983 Spc 

CGMP 1964 Vlpc 

Creditanstalt IS84 TJpc ~ 

0M> . um viriui BVI 

Wars, and Gbms *81 SIkpc MI 
Source: WbtteWeld Securities. 

American Exprcsa Sine ’S? 831 

Ashland Spc 1988 8*i 

Babcock A Wilcox Sfpc -97 844 

Beatrice Food* 4tpe 1982... H 
Beatrice Foods «pc 1993... 1034 idh 
B eechafo Sloe 1993 s«4 971 

Borden 5pc 199? fts 

Broadway Bale IlDC 1867... w 

Carnation «pc 1W7 TSi 

Chevron Spc 1888 123 . 

Dm vpe 1fl«7 784 

RJSTmn Kodak 4ipc 1988 82 

Economic Labs. 4ioc 1987 77 

Flrestoue Son 1988 • so 

Ford 5pc 1998 «g 

General Electnc Hpc IBS? 82 

Gttblie 41 pc 1«7 7SJ 

Gould Spc 1987 WW 

Gulf and Webern 6 pc B88 89 
Harris Sue 1B9S . — 152 
Honeywell Goc 1985 to 

JCI Upc 1993 884 

1NA Sue 1997 96 ' 

rnchcape Mtv 1982 ... UIUU . 1124 

rrr 4*pc iw7 so 

Joaco Spc 1992 ■■■■- — 1184 
Komatsu 7*p c 19M 12Jf 

J. Hay McDermott «oc *87 1584 
Matsashita Slue 1990 io» 

Mltjud 7}pp 1990 £JSJ 

J, p. Mwaan 4!nc 1987 ... to 

Nabisco Sfpc 1*« ... 160 

Owens mmols 4'PC 1987 105 

J. C. Penney *?w= 1987 ... 73 

BetlOB «pe 1»W 105 

Reynolds Met::* Spc 1988 S3 
Sandvflt «pe JOB* 

Spcrrv Rand 4’nc 1987 ..._ 874 

Smribb 4*pc — 80 

3Y**rt» 4*pe W* 7» 

Toshiba Upc 1992 — J — 1334 
Unioo CartWc 4!PC 1382 93 

Warner Lambert 44pc 1987 82 

Warner Lambert Upc 1988 78 

Xerox SPC 1«S 794 

Source; Kidder, Peabody Secvrltfei 

MM ill 

8f m 

i«a 151 

to 90* 

884 . 873 

K 973 

1134 1131 

80 81| 

1184 U9| 

cm mt 

1584 1004 

1684 1811 

ESJ 1294 

10a 1104 

874 89 

80 814 

m SI 

1834 US! 

93 Mi 


The Afrikander Lease 

(fftcorporatefl In. the Republic pf South Africa) 

Interim Report— 1978 

The directors submit their report on the operations of the company for the half 
year ended December 31. 1977. The report includes comparative figures where 
applicable in respect of the immediately preceding corresponding interim accounting 
period, viz. the six mouths period ended December 31, 1976. 


The fallowing is the text of an announcement published in the press on April 7, 
1978, copies of which were sent to all registered shareholders, 

“In October 1876 the directors decided, upon the recommendation of the technical 
advisers to the company, to proceed with a detailed feasibility study to determine 
whether or not a viable uranium mine could be established within the company's area 
of interest. 

As stated in an announcement on December 29, 1977, the detailed feasibility study 
and pilot plant testwork have been successfully completed. Your directors are, however, 
becoming increasingly concerned about other factors which could affect the viability of 
the mine which, unlike other South. African producers, does not have the backing of a 
proportionally larger gold output, 

When the feasibility study was considered late lari; year we, in common with many 
others, were hopeful that the inflationary spiral had been contained and that costs would 
stabilise. The spate of price increases in the first quarter of 1978 has forced us to 
modify our views and to take another look at inflation Insofar as it would affect capital 
expenditure and working costs. In the latter area the rapid increase in power costs is 
particularly worrying as the mine would be a heavy consumer. We are, furthermore, 
concerned about the additional inflationary impact of tile general sales tax. 

While it is not yet known whether there will be relevant exemptions, there is a 
fear that the capital *' cost could be increased by several millions of Rand and that 
operating costs would be significantly higher. We therefore Intend to negotiate with 
government on various aspects of the project. 

In all these circumstances, and as the company has sufficient cash resources to 
delay a decision on whether or not to establish a mine, the directors have felt it prudent 
to suspend temporarily negotiations for the sale of the major portion of the mine's 
projected uranium output until talks with government are concluded and a general 
review of the feasibility study in the light of the inflationary factors described above has 
taken pflace. Shareholders will be notified in the annual report which wfR be issued, 
before the end of September, of any progress made in negotiations with government 
and of any decisions taken as a result of the review.” 


Net expenditure for the six months ended December 31; 1977 amounting to R558 000 
(1976: R184 000) has been capitalised and charged to mining assets. 

Commitments at December 31, 1977 amounted ■ to R85000 (1976:~R18SQ0Q). 

No dividends were declared' or paid during the six months under review. 

The company owns the total share capital of. Western Klerksdorp Investments 
Limited. A group interim report has not been prepared, as in the opinion of .the 
directors it would be of no real value in view of the insignificant amounts involved in 
the subsidiary. company. - ■ ■ *. - 

The book value of the investment in Western Klerksdorp is R2T1976: R2). Western 
Klerksdorp 's remaining assets consisting of mining rights nave. an indicated' book value 
of R5 000. These have been purchased by Afrikander Lease for a nominal sapa and the 
necessary registration- formalities are in progress. On completion of- the transfer 
Western Klerksdorp will have no assets- or liabilities and -application 'will be -made ta the 
Registrar of Companies for its deregistration. 


The company’^ current drilling programme .comprised the drilling of boreholes 
DRL -17 and DHL 13 -to Obtain supplementary 'information in. an' area -delxtiea ted as 
probably low grade in die northern portion of the are# of interest, and DRL 16, DRL 19, 
DRB 6 and DRB 7 to examine possible southern and deeper extensions of the orebody 
in the area of interest 

The results of boreholes DRL 16, DRL 18 and DRL 19 were given in an announce- 
ment published on November 9,. 1977 and the results of. DRL 17 were published in the 
1977 -annual report The results of boreholes DRB 6 and DRB 7 are as follows: 

Lower 1 286 3 8.31 187.4 38-18 B.7B 187.4 14S 

Core recovery was complete In two intfmetions and there was a slight core loss la the third 

DRB T Hie reef was faulted out and drilling was abandoned. * 

ThO rirflHng of DRB 8 is ami jmliy . 

Administrative and Technical Advisers and Secretaries; 
Anglo American Corporation of South Africa -limited, 
44. Main Street, 

Johannesburg 3001, 

(P.O. Box 61587, Marshalltown 2107). * 

Transfer Secretaries: 

Consolidated Share Registrars Limited, . 

62, Marshall Street, 

Johannesburg 2001. 

(P.O. Box 61051, Marshalltown 2107). 

Charter Consolidated Limited, 

P.O. Box 102, 

Charter House. 

Park Street, 

Ashford, Kent TN24 8EQ. 

For and on behalf of the Board 
D. A. Etheredge / j.. . _ 

J. S. Hammill ) Directors 

- Head Office: 

44, Main Street, 
Johannesburg 2001. 

London Office: 
40, Holborn Viaduct, 

April 12, 1978. 

An important announcement 
to our stockholders: 


Copies ofthel977 Annual Report 
of Citicorp can nowbe obtained from: 

Citibank, NA.,336 Strand, 
London WC2R1HB, between the hours 
of 9.30am and 4pm Monday to Friday. 

Postal applications should 
be addressed fortheattention of the 


CitibankHouse, 336 Strand, London WC2R1HB 


—.*••• •< 


Financial Times Wednesday 12 1973 • .- > 


HONG KONG,- April 11. 

JARDINE. Matheson and Co„ 
bluest of the trading and ser- 
vices houses here, to-day 
announced -net profits of 
SHK314 ^hl for 1977, about $6Sm. 
The modest 4 per cent, increase 
on the previous year's SHK301.orn. 
was close to analysis' forecasts 
and reflected reduced contribu- 
tions from some areas. 

Profit from service activities, 
for instance, was noticeably lower 
whereas the property division 
was markedly up, reflecting 
better market conditions in Hong 
Kong and increased earnings from 
Reunion Properties in London. 

Jardine. Matheson is recom- 
mending a final dividend of 
$HK0.4S a share making a total 
of SWK0.G7 for the year, G.3 per 
cent, higher than in 1976. Divi- 
dends are again being offered in 
scrip form with a cash alterna- 

The group's results were 
achieved in an " uncertain world- 
wide business environment" and 

reflected a general improvement 
in the group’s overall business, 
despite disappointing perform- 
ances from three publicly quoted 
subsidiaries: ‘Jardine Industries, 
Jardine Dories Inc. and Rennies 
Consolidated Holdings. It is 
anticipated that. these three will 
show an improvement in 1978. 

' Liquidity has remained satis- 
factory' and overall term borrow- 
ings have been reduced. 

.Hong Kong, the group’s head 
olfice and main operating base, 
showed improved results In 1977 
despite the downturn In Jardine 
Industries and contributed 57 per 
cent, of overall earnings, com- 
pared with 54 per cent, in 1076, 
adjusted for unsecured loan 
interest. Jardines* middle East 
Investment also performed well 
in its first full year accounting 
for li per cenL of .group earnings. 

In North East Asia Jardines 1 
China Trade progressed satisfac- 
torily and In the Japanese market, 
where trading .operations con- 

tinued to be successful,- - further 
growth is expected in 197S. In 
South. Korea business was quiet 

In Singapore and .Malaysia, the 
quoted subsidiary, Jardine Mafhe- 
son and Co. {South East Asia!, 
achieved satisfactory growth. This 
is expected' to. continue hi - 197S. 

In the .Philippines, Jardine 
Davies Jn&- disappointed due to 
low sugar prices and a period of 
reconstruction following the 
earlier substantial loss in a sub- 
sidiary. A new management team 
is now in place and 1978 is ex- 
pected to produce a better result. 

Australia had a satisfactory 
year, helped- by a 36 per-cent, 
increase in earnings from the 
quoted subsidiary, Fleetways 
(Holdings). In Southern Africa 
the results from Rennies were 
disappointing, although an up- 
ward trend in the second half- 
year' Is expected to continue 
during 1978. 

Matheson and Co., in the U.KL, 

had- a~-good- -year;- -with- income 
From banking- and: related services 
in particular showing an improve- 
ment, Earnings-, front Reunion 
Properties Company also in- 
creased. The .contribution from 
insurance broking- improved fol- 
lowing the acquisition during the 
year of Thompson -Graham- 

In 1977, 28 per.ceat. of group 
earnings were contributed by 
trading and light industry (24 
per cent), 2 4 per eent, by ser- 
vice activities (31 per cent.). 17 
per cent by financial services 
(19 per cent), 2S per cent, by 
property (21 per cent), and 8 per 
cent, by natural resources (5 per 
cent). All percentages are as 
adjusted for unsecured loan 
interest. -> 

Looking' to the future. Jardines 
anticipate that much of the world- 
wide uncertainty ef 1977 will con- 
tinue in 1978. Nevertheless, 
profits and dividends should again 

Gain foreseen 
at Reliance 

By R. C Murthy 

BOMBAY. April 11. 

SALES of Reliance Textile 
Industries, the most modern 
textile unit in the country, are 
likely to rise above Rs.lbn. 
(8120m.) in the year to Septem- 

Reliance, with a turnover of 
Rs.TOOra. in 1976-77, exported 
about 10 per cent, of product'/ n. 
mostly synthetic and other 
finished fabrics asainst strong 
international competition. 

The company recently went to 
the market with existing share- 
holders selling Rs.28m. of equity 
capital. Another Rs.4.8m. worth 
of equity shares are to be offered 
to the public before the end of 

The oneratine profit (before 
depreciation and - taxation ) of the 
rnmpanv i«* expected to double 
from 'RsA' in ih76-77 to 
around Rs.SSm. (SlOm.) in 

A ■Rs.]°8p\ e'-nan^on pro- 
gramme to inereacp". the potu- 
panv'<? yarn omrossirio. weaving. 

print and fab’ - ''**! Tirn^o'-ino 

capacities is nearing completion. 

Weston margins under pressure 


SYDNEY, April 11. 

locally-listed bread and biscuit 
subsidiary of Associated British 
Foods, will make a one-for-eight 
scrip issue after lifting net profit 
5.1 per cent- from SA8.7m. to 
$A9.2ni. (8LiS10.5ui.) in the year 
ended January 31. 

The Board said that higher 
labour and materials costs, 
coupled with higher interest 
charges due to increased borrow- 
ings, held back profit growth 
throughout the year. 

Haw P?r 

Haw Brothers Internationa f 
groun. Scott and English, Scott 
and English (Malaysia!, and P. T. 
Sande Jaye Indonesia have 
become the trading division, 
under the deputy chairmanship 
of Mr. John Jarvis, reports AP-DJ 
from Singapore. Stacey Ellis 
responsibilities have been 
increased to in chide trading, 
pharmaceutical and insurance 

After including extraordinary 
items, the group's profit dropped 
from SA9.2m. to $A8Jm- An 
extraordinary loss of $A9S5.0Q0 
included a SAl.lm. goodwill 
write-off after the acquisition of 

new businesses, relocation costs 
of SA2 19,000, a tax adjustment 
of SA192.000, capital profits less 
losses on the sale of property 
and investments of SA155.000 and 
currency exchange gains of 
S A 106.000. 

The company showed an 
Improvement in the second half 
when profit rose 7.6 per cent, 
against a rise of only 2 per cent', 
in the first six months. 

The directors said that the 
scrip issue was being made after 
a revaluation of properties in 
1975 and the pleasing profit 
record of the past few years. In 
the previous year profits had 
risen 17.8 per cent, to a record 
SAS.7ra. The issue will increase 
paid-up capital from 40m. to 45m. 

shares and the Board is hopeful 
or maintaining dividends on the 
higher capital. 

The annual dividend this ^ear 

has been held at 7.5 cents a snare 
with a final payout of 4.5 cents 
a share. The annual distribution 
is easily covered by earning of 
21.6 cents a share on the old 
capital, up from 20.4 cents a 
share the previous year. The 
new shares do not rank for divi- 
dends until July. 31.. 

Sales rose 10.S per cent from 
SA252.6ra. to $A280m, Profit 
was after tax of SA4.5m. (pre- 
vious year 4.9m.), interest 
charges of $A3.2m (2.4m.). 

depreciation of SA5.7m. (5.2m.) 
and minority interests of 
SAU7M0 (108,000), 

Philippines offshore banking in the red 

MANILA, April 11. 

established offshore ‘ banking 
system generated deposits total- 
ling $U.S.73Sm. from July to 
December last year, but suffered 
a 81m. net loss during its first 
six months of operations, the 
Central Bank says in its 1977 
annual report. 

Fourteen of the 16 foreign 
banks allowed to open offshore 
banking units here had started 
o Derating by the end of 1B77 
with their total resources stand- 
ing at S757in. the renort says, 
stating that success o' fhe system 
Is essential to the Philippines’ 
bid for recognition as an Aslan 
financial centre. 

Of the SUS736in. in deposits, 
a little less than half consisted 

of offshore funds, predominantly 
rrotn Singapore (3194m.) and the 
U.K. f$8Sm.>. The balance of 
$382ra, according to the report, 
were internally sourced funds, 
from the Central Bank ($298in.). 
the OBUS (S52m.) and from 
other local and foreign resident 
banks ($32m.>. 

Interbank placements of the 
OBUS totalled S649m. with 46.2 
per cent, being channelled to 
the Philippines and the rest to 
other countries, such as Singa- 
pore (Si?3m.), the U.S. (372m.) 
and the U.K. 


★ * * 

DG. Bank, of Germany, has set 
up a subsidiary. DG Capital, in 

Hong Kong, writes Daniel Nelson. 

Established as a deposit-taking 
company, DG Capital has an 
authorised capital of $US10m., of 
which half is paid-in. It is one 
of the first Hong Kong banking 
institutions founded as wholJy- 
owned subsidiary by a German 
bank. It wiU participate in loan 
business, including 1 syndicated 
loans. money and foreign 
exchange trading, commercial 
transactions and documentary 

DG Bank serves as the liquidity 
manager and central bank for 
West Germany's co-operative 
system, which has consolidated 
total assets of almost DM240bn. 
It established a Hong Kong rep- 
resentative office early. In 1976. 

The Earl-of Airlie, 

Chairman of Schroder s Limited, reports on 1977 

The disclosed consolidated profit, after 
taxation and transfers to inner reser\ cs. 
iimounied to C3.504.000 compared w ith 
£2.213.000 in 1976. A maximum permitted 
final dividend is recommended, making a total 
for the tear of 1 1 ,55I5p per share compared 
w ith 10.2425p per share.for 1976. 

The earnings of J. Henr\ Schroder .Wagg 
& Co. Limited exceeded the pre\ ious tears 
record let cl. The banking division's profits 
were higher than ever before: the 'investment 
division-had another^uccessful \ear and 
the com pan \ finance division made its highest 
ever contribution to The bank's results. 
Schroder Life made further progress and 
Schroder Leasing achieved record results for 

Schraders & Chartered Limited continued 
to play an increasingly- important role 
in the Hong Kong market and Singapore Inter- 
national Merchant Bankers Limited achieved 
i nereased prof i is in i he f i j;st full year 
since we look a 25 per cent interest. 

The Group is making encouraging progress 
in developing business in the Middle East 
and our traditional banking activities in 
Latin America have continued lo expand. 

the third \ ear running. 

The most important single development 
during 1977 was the announcement of a plan 
to increase the capital of our United Stales 
subsidiary This was put into effect at the 
beginning of this tear and. whilst the 
benefits can be expected to accrue only over 
a period of tears. the expansion will enable- 
us to increase our commercial banking 
business and so to lay a base for the broader 
growth of our United Stales companies as a ■ 
whole. Earnings from the Group's United 
Stales operations moderate!} exceeded those 

for 1976. 

Although Property Holdings International 
Limited has made considerable progress in 
realising investments, some profitably, the 
results Tor 1977 showed another substantial 
loss. On present expectations, any loss for 
the current year should be materially lower 
than in either of the last two vears. 

Present indications are that this year 
will see a relatively low rate of growth in 
the major economies and in world trade. 
Inflation is still a serious problem in many 
countries and currency fluctuations have 
become even more of an unsettling factor than 
in the past. Perhaps most worrviug of all 
is the growing threat of a retreat into 
damaging protectionist measures and l 
earnestly hope that the leading industrial 
nations w ill strongly resist these pressures. 

in Switzerland J. Henry Schroder Bank 
A\G. again made good progress in all areas 
of its business. 

in Australia the Schroder. Darling.Group 
earned a slightly lower profit in the year to 
30th June. 1977: however, in the half year to 
3!sL December. 1977 a decline in interest 
rates resulted in an improved return from 
the banking operations. . *' 

Against such a background industry 's 
demand for new capital is expected to be at 
u relatively low level and this’ is likely to 
have an adverse effect on our traditional 
banking and corporate finance business. 
However, wo have an excellent team of 
people w orking for the Group around the 
world and l am confident that we can take 
full advantage of the opportunities and 
challenges that tie ahead. 

Group Companies, Associates and Representative Offica in; 

Argentina. Australia. Belgium. Bermuda. Brasil. Canada, Ttie Cayman Islands. Columbia. France. Germany. 
Hong Kong, Japan, Lebanon. Saudi Arabia. Singapore, Switzerland. United Kingdom and United Slates of America. 

H you would like u copy of (he Schraders Limited Report and Accounts, please write to 
The Secretary, Schraders Limited, 120 Chat pride. London EC2V 6DS. 




By. Our Own Correspondent 

■ . HONG KONG, April 1L 
group profit Was $HK217.9m. 
(9U.SA7.4 iii.) for the year to- 
December 1 31 — and a profit 
before extraordinary Items of 
$HK182_9m. which is gHKlOm. 

below the profit forecast made 
at the time of the merger 
between . Hutchison Inter- 
national and Hong Kong and 
Whampoa Dock last year. 

The directors attributed the 

profit shortfall to a further 

iline in the market value of 
qnoted dealing investments 
since June. 1977. At the time; 
the difference between book 
and market value of these in- 
vestments totalled SHK3.9m^ 
and for merger purposes the 
directors assumed flit* would 
remain constant until the end 
of that year. . In view of the 
further fall In (he market value 
of these Investments, the addi- 
tional amount provided in the 
six months to December 31, was 

They also died the necessity 
of 'making 44 substantial pro- 
visions’* . against projected 
losses- on uncompleted eon- 
tracts 1 in one of the group’s 
construction subsidiaries. Far 
East Engineering and Construc- 

Details of these items will be 
given in the annual report, but 
earlier in the day, Hnlehlsou- 
Boag said- -that its attributable 
loss of $Brf(lLlm_ for 1977 was 
dne to the problems of Far 
East Engineerings 44 The esti- 
mated losses have only recently 
become apparent.” the. company 
said, 44 and stem primarily 
from the significant increases 
in labour and materials cost 
that occurred in the construc- 
tion and building industries in 
1977. Shortages of both labour 
and materials have also re- 
salted and in turn have led to 

Hutehison-Boag will not be 
paying a final dividend bnt 
Hutchison .Whampoa will keep 
to Its merger forecast by pay- 
ing a final of 12 cents, absorb- 
ing 5>’HK4£-3 iil, to make a total 
of 20 cents, absorbing $HK 

The profit shortfall of the 
new company, which has assets 
or some $fEK2.8biL, is particu- 
larly disappointing because 
extraordinary items are ex- 
cluded from the merger docu- 
ment profit forecast and were 
expected to make a positive 


MITSUI BANK announced t(H)av. t pV g Wt the company is working 
that .it will, put Its deputy. ,-out a rationalisation programme, 
president Mr. Ikuro AoM, on the?? which might involve hiving off 
Board of the deficit-ridden textile#* -natural- fibre- division .as * 

expected to be ele«ed ,Boaxd^^^ etics> foods aud pharma- 
ehainnan at. a Board .meeting izuceaticals. 

July. . ..«: , /Kanebo's deficits in its natural 

Kanebo, like other'- J a nnual , -fibre -da) vision -(cotton; wool -and 
synthetic ffl>re'produce™!^^)J.a*e started W.<teOBM 

ShMfsk ° fthe 

yen exenange rate. . - . . -profits in the current half-year 

To tide : it. over its current -to April. 30. 

TOKYO, April 1L 

- The group’s huge deficits stem 
mostly, from -its. three major 
synthetic fibre .divisions, -with' 
nylon accounting for 18 percent 
of total sales, -polyester for 17 
per cent- and. acrylic fibre for 
21 per cent . '• .. ■ 

Kanejio is. a. relative newcomer 
in the synthetic fibre market and 
has,,, according -to - industrial 

sources, been obliged to com- 
pensate for its weak sales net- 
work- by. heavy, price-cutting. Its 
recurring deficits amounted to 
YIS.Rra. in 1975, Y]&3bn. in 
1976 and ¥5L7bn. ip. -1977, and are 
-estimated at YISba. '(SBUm.) in 
the current fiscal year ending 
April 30. 

Slow loan! expansion in Japan 


TOKYO, April 1L 

OUTSTANDING loans of Japan's 
13 major City banks at tiie^eud 
of ' March, at Y5S,433bn. 
($266bn.), showed an increase of 
Y4,654bn., or 8.7 per cent on 
the year earlier level, the lowest 
annual growth, since' fiscal 1855. 
according to a report by. the' 
Federation of Bankers Associ*: 
tion. /V 

Deposits at the* banks, hi the 

same: ' ' period Increased " by 
W^lOblL, to Y67 ,3226m, up 
lt3 per cent Officials of. the 
'Association ascribed' the slow- 
down to stagnant .' loan, 
demand from corporations on top 
of repayment of - loans by large 
■and medium-sized corporations, 
;Xh addition, the sluggish deposit 
rise was attributed to corpora- 
tions diverting funds into :the 
money markets, away from 
deposits at banks. The slow- 

down u... wages was another 

In the six months accounting 
term- to. the end of March, 
Dai-Icbi Kaiigyo -Bank remained 
the deposits, leader, with a total 
of Y8,590bm, up 5.7 per cent over 
September, 19(77. Fuji Bank was 
second, and enjoyed .the highest 
single gain (7JL per cent) to 
Y7,432hn- Sumitomo ranked 
third, with Y7,296bn., up 6.7 per 
cent - ••• * 

Kuliiii Malaysia gain 



PRE-TAX profits at K nibn 
Malaysia rose by 30 per -cent, 
last year to reach 8.8m- ringgits 
f$US3.6mJ, but feir short of 'the 
company’s forecast of. an 
LLGSm. ringgits profit ' • . 

The confident prediction ' of 
11.68m. ringgits was made by -the 
company during the first /half 
of the year, when it achieved a 
pre-tax profit of 5.8m- ringgits. 

However, the sharp decline in 
oil palm prices during the second 
half squashed all hopes of- such 
optimistic results. While Kulim 
was able to get 1,431 ringgits 
per ton for its palm oil, during 
the first half, the average price 
for the second half was only 
1,000 ringgits per ton. 

The' company's estates were 
also affected by drought during' 
the later part of the year, result-, 
ing in a poorer >. crop', than 
expected. - 

Despite higher tax of 5.4fii.- 
rlnggifa (2.97m. ringgits pre- 
viously), the group’s net profit 
of 3.76m. ringgits ($USl-6rh.) ; 
was 4S per cent higher than the 
previous year. This -ir-.f largely 

due to a gain of 0.6m. ringgits 
derived from the revaluation of 
a foreign currency loan. ' \ - 
' A final dividend of 13 per . cent 
is paid, making a total of 23 per 
cent, (same as previous year). - 

North Borneo Timbers 

North Borneo Timbers, which 
suffered a sharp reversal in 

r ts during the. first half of 
current financial year, has 
revealed figures, for -the nine- 
month period showing a. continu- 
ing deterioration of the com- 
pany's results,, writes 'Wong 
Suloog from Kuala Lumpur. 

The company last reported a 
drastic drop in its profits to only. 
455.000 ringgits (8US194.000) for 
the first half of the ' year, com- 
pared with profits of 12.24m. 
ringgits, during the same period 
of th%-last financial year. 

It , expects the final .quarter of 
the - financial year to. improve, 
however”- although profits are 
likfey to be very much below, the 
bumper profits' of 23.4m. ringgits 
of, «ie last year.. - - . , 

Rakyat bank 
trebles profit 

By Our Own Correspondent 

xualalumpur; Aprs u. 

A THREE; TOLD increase . in 
profits ' was reporiedL by the Rat ; 
yat Rest. Merchant Bank, : the 
small Malaysian bpnk^ In .which 
the Citibank of New York had 
a 45 per cent-interest until early 
this year.. • ” 

.-Pretax ^profits for- 1977 was 
520.000 Ringgits (5220,000) com- 
pared with ,185JK)Q JRinggits the 
previous yeari 

The bank is^ now a wholly . 
owned subsidiary of the Malay 
Co-operative Bank - Kerjasama 
Rakyat which bought out thr 
Citibank’s interest following. the 
souring of- -their’ - relationship. 
Bank Rakyat Is now suing Citi- 
bank for .flm. Rihggits in con- 
nection with letters of guarantee 
which tile American bank issued 
to enable the former .chairman of 
-Bank-Rakyat Datuk Hanrn Idris; 
to fiponsor.the Jfiohainmad Ali- 
Joe Biigner bout "la: Kuala Lum- ' 
pur in lfl75j- .: 



U.S. $100,000,000 MULTICURRENCY 





















ir. : -. • 


■j , y 
.* y . _ 

ft~' . ■» 


O' .. :• 



a- . - 

■r ' ' • ■ 
•w ■ 

2 .VZ •-~i - • 

Ezj: • 


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j r k> ^ 

Fniancial-Ti^ April 12. 1978 


£' . J-.rii jjEL^ . : A. -T-!i •- -.■*& -«■' r "- • • •• ■■ 


International invitation to tender 
*'}: * r & > for S driUing" Compact Rig.” ";■ 

The Groupe Etude Miskar acting for the. future 
entity responsible for the implementation of 
Misl^r-. Gas- field development project 4n the 
. -Gabes .Gulf,- _of£ Tunisia,' is presently .inviting to 
• tender for -acquisition' of a drilling 1 * COMPACT 
RIG ”* to drill gas-wells from a fixed platform. 
Drilling contractors, are invited to get the tender ■ 
documents which ;are available starting' Monday, 
April 10th, 1978, at th,^: following address:' .■ 

. MISKAR .V - 

11-Av. Khereddine Paeha— 1 TUNIS 
Teiex 12 128 TN r - 

against payment of ©ne hundred '{ 1001 .Tunisian 
: dinars-- or its equivalent in foreign currency. ■ • 
Tender documents will hot be sent _ 

Bids must be -submitted no later than Monday, 

May, 22nd; 1978 (until 5 

'..Sr-. . 


The Posts awl Telecomm unwt ions Corporation or the Republic of- Ghana once 
Win mvltas tenderers, who will be limited to futiorals al • countries ol 
I mM national Bank lor Reconstruction ana -Development (IBRD) and Switzerland 
■only for pairs of. 

..... NATIONAL 1 


pia^ tovija t to n. to tender is (or. the folio wins two sub-protects: . 

- ■- ’ InsnUatlon oh" turn-key' basis of. 'new ' automatic: .telephone, 
exchanges (stored prooramme cfintrolX which, comprise one trunk tncnanpe 
with manual switchboards (tcrthirv centre). -lor local exchaoses equipped 

. . with ,16.000 lines. In total in mu It) -exchange areas, e . local eachanoes 
. . equipped with 2.500. lines in' total together with Juannei switchboards 
. (primary or secondary centres In simile exchange, areas). . and power 
. ctrateioent.. .. ... 

Sub- protect O/ltem • - 

Procurement of 170 sets Of electronic teleprinter. 

Prospective tenderers mar obtain -copies' -or the specifications against Harmont 
oF two hundred U.S. dollars [52001. per complete copy, daily beevioen Q9.Q0 
hours and 16.00 hours GMT From 30th March. 197B. to iStb May. 1978. at 
the address .given bekiwr ■ 

’■« WORLD BANK PROJECT OFFICE (Room 312. 3rd Floor).': 


The dosing date " bl submission ot tha tenders 'will be' at 11-00 -a-m. 
Ghana time, on ZSth August. 1978; 

Director-General. ~ ■ -■ , • 

The' Pest and Telecom mu nluttons .... 

Corporation of the Republic, of Ghana. 


• ' MERGER OF " . 


— * - - • ' • WITH * 




NOTICE -IS HEREBY GIVEN pursuant, to section 7(b).. of trust deed dated 
' on Ai/gii** ' n. ' 1.971; that: _ ... 

l.-Toe'-merger' agreement wav made on 30th. March. 197.8 Japan- J.'nie. 
Between Taxm Oeoartmen* Store Cp., Ltd.. • JapanKe cor mi^tloo. ha*ingjca 
principal o-ace oi busings a< 24-1 Dooeiwaka 2-Chome. Shibuve-ku.- Tokvn^ 
Japan (tn* '.company T. and Saoparo Tofcyu Department Store. Co. Ltd., a 
Japanese corporation and wholly-owned fubSidiary of lie M /*[*Ji* 

principal place -of dullness, at 1. NIsW 2-Cfiome Kalta 4- Jo. Sapporo. 

SdkkaHu. japan (the "Tubsldlarr“l. prpvldlrto for tne- subsidiary being .merged 
into the-, co*n oan»: -*„ , 

i. . Tne proposed merger is- to be-submlttcd re me shareholders or the 

■tar approval^ 28th ■ Apt IL 19*8; JWn rme. and Js. Wtgj.tedtPP«gJJ£ 

elective pnlst August 1 97B . J wait Jl roc; . * < No ■» Id pe - 

under thecommerdai coee. of japan the proposed m e rger te re 
efleCTve -upon ccmoJe-Fon of the' .Sflrporat* registration thereof, which is set 
tor 2 ltd October.. 1973 Japan timet , end ' • ' ' ■ 

s : - There wil- n» na ee urftlei Or Other • property -USpablf or deHvereWe : W 
hdOeVT.* thT'eomwny 'upon- me' dW- 

smSpb shareholders will, be, entitled to an. appraisal remedy ad -ovovided for ta 

THBFUU BAS* XNO*T?m5ri:OMPANY. NEW YORK. W pr\ncfwA%ni"&. 
agent and on Srer^-go.. Ltd, -Tokyo. Jbpw. 

. VCO. LTD. -'~i: T 
'nOtFcE to' HOLDERS ttf j . 
(EDRsl #Vip.MI&U*JS-SH&R£i HE^ 
" . _COMNW43»OL . 

Notice is Siren that 
Photo Industry Co™ Ltd- ttho Cain 
pauv "> mtenos re close its shaie- 
hoJaers' regisier liom 
tf» daic- Of the c*osii»0 . 01 

pauv ) iiucnas w '.'iTi]; 

haJaers' regisier liom 
to the daic- Of the cJosins .of 

Sd.wry uenerel Meeting re be irew 
in mld-J uly 1 9 7B. Dunns this 


record other changes in the Retnster- 

; *METAL S'a; : " r V*^ 

(formerly Le Nickel - ). : jjA ' 1 

-."riiy^'sFjUrS^WJLflDO-rss. - • 

> 9 % -wriiws - 

Holder* o» : - the '-'above- tinned ' 

bonds ire hereby informed- that the 
in mu I redemption initalmsht of 
SUS.1.S00U00 due on- lSth May 
1978 hu been entirely, satiified by 
rcpurcha<r in the m*rfc*t of 1 .500 
bonds of SU S.I.0D0 each..- 

uDk U LI1WIIB— - 

rno hqnjtfi are turtner mrormea 

roceero the veer- end dividend. 

Consequently, a drawing by lot will 
not take place this year. The amount 
of bonds outstanding. af»r the 
amortization of. 15th May 1978 will 
be SU.5. 1 6.5OtM)O0.— 

Socieci Anonyme 
Fiscal Agent 

S- clalmfm this dividend and wdl 
be. deemed to mature on April ■ 
ig7fL Coin meric 1 1>« on Amr ^ 

W»i -*>232? JUTS* IrJSwd “ 

surrender and will not be Issued wire 
""sublect to s ha rrtwlde re* approval oi 



• N^.. .LONDON 

As Depositary. 



Socteie anonyme 
'Registered - Office Luxembourg 

23. Avenue d« la Pbrt^-Neuve. 

" ft.C- Luxembourg B 

ANN o1 L sS^e5old«s^ G 

=b«S:« ass 
-3s*3|gjs« s*"'® 

—to" 'appropriate the earnings. 

—to apore re « h a l ?«SScfSSS 

and redemptions « 

No. 00993 oi 19J1 , 

. in ibe HIGH COURT OF 

Chan ci- ry Dlvuion Companies Cmirt- in 

the Mailer Ol DRIERLE1 

LIMITED and In (he Mailer of Tne 

“ras i “«*“« onrES. -.I... . 

Petttlritf-for ita- vlndliij' as ordw 
rizny-d -Company by the Hn* Conn. Of 
Jn^bec was on fl» Wai .day of 

Brwehred' To lh'- ,- Wj^ ^nraE 

LIMITED whose Reclsivrod OB» ■ » 
Grece Sin-eL Reddish. SiocKporL Creaur 
Manchester, and. Orel the said PolJy®J 
iR (fireoied ro be heard before the Coori 

3iSS« “oval Courj s of JnsUcf 

S'rand. London WOA 2LL ®" ^ 

24ih day of April IB78 and any creditor 
or coninbniory of fhe sanf Com^n 
desirous id siippon or 09^. die rnakinc 
of ao* Order - on ifte said Pennon may 
appear .at the .Unv si bean or '“jPp**”® 
orby his Counsel for ihat von 30 ^-?^ 
a copy ol die "Peliuon uriH befumrtwd. 
by the uiKtersteni’d to any 
contributory of the said Company reon 
ins stub copy on payment of Ihc reaulalcd 

duurse for Hw name. 

ism. Old Square. 

Lincoln's loo; 

London WC2A SUB. 

'■ SoHcitors for the p *' l,,l0 "^' ndR , D 
loieulon ao to. do. The notice ubk 

sna-. tLStt & 

“ z In 

-BF1-“lsS!!&5r a-'-u-"-’ •TtwiviB.;-,.. 




All mapmtoM aontimei ora' iiww/rerdted fa Uw Republic of South Africa 



ordinary shares of 20 cents each. 

lutiy uaid. 


Tout since 
Inception of 


Capiinl rxpvndlmrc: 

Olr. ended 

ptr. CTtfflrt 
' 31/15/1977 

company a 



Other capital cxucudliurc .. 

... - . M« 







■ 7JXV 

' 97JX7 

Sundry • revenue 

\ - 229 

' 1IH 






ISSUED CAPITAL: 14,082-160.. stares of HI each- fully paid. 

Qtr. ended QU. ended 9 mU» ended 

TNG RESULTS: JUSflVK 3U 12/1977 3V3/OT 


ISSUED CAPITAL: fjBS.000 sharca of Bl i.artt, fully piltiL 



Ore milled ru 

Gold produced ikt.) 


Revcmif iK t milled i .. 

Cost iR- t milk-0 1 







GoW: - - 

Ore milled (t> ....— 

. Gold produced fits.) ..... 
- Yield is/i> - 

Qtr. ended 

CHr. ended 9 mills, ended 
3I/J9/UT77 31/3/1978 




Revenue rR'i milled i 
Cost (R/C tnlllcdl ..... 

profit (R/t miUcdi 

4 profit iR'i nulled) 

Revenue fROOO's) 

Cost f ROOD'S! — ........ 

Revenue > ROM's « .. 
cost iROM’si ........ 

Profit (ROM's' — ...... 

4^r=i£r, fjggfpj&i- 

S??lSsr-as'«s“- , «s srsr^m^o r^ s - 

reduced, amount u- f £' w «Munt of this &y the an«jiswwu. -.Tv^Snhw 


Friars Mouse, <r _L» . Kinn’s Beam House. 

F^rinn^’ -— - -*WJ. Mart Lane. 

USASO.OOO.DOO a'1% WINDS DUE 00 the hcarme or ^ a “ y 0{ s ^a 

u**a«.ug« H MARCH. 1909 ojrujh said Petitions BIBB. Mire on. or 
Pursuaw to me -a.-B hereby by post to «« abovt-named. "M® "J 
SLJ^dnrtnS^'tte ^ iSisBi «*f*£Br wiling of. m imeminn so. tatlo* 
^ad^SJnnirt? « l ^iTmuo ntfe ■*?.«!!» MK 

Friars Mouse. . 

3914 T. New Bread Street 
Load an. E X UZ. ■ - 


rapiTAi EXPENDITURE: The estimated . capital expenditure lor the current 
oSSSSfS * wE ^nShonT The uwawnded balance of aathonsed capital 

expenditure ai 31 March 19W u-ns B3L0 mUilon. 

prffllt IRDWTai 

Si^Tslnll^T^'stall was sunk 66 metres 10 Its llnal flwili of S.W7 mclTM 
bvlow collar Preliminary dcvelopmcni work on 11 Level station together wnb 
Ku^meuon sSwupHon or the shaft bottom inwwrtiu.™ haw..bera 
completed. n» smldn* equipment bas been stripped frum the shaft and wort 
on llie Hcodne&r cJumcc-ovcr has commenced. . ■ ..... . __ w 

No. 1 Sob-vertical Shaft: ThL- shaft was sank 58 merrCs lo a lotal bepth of 
5M meirea below the collar on 9 Level. Ite-eiavatun anai swoofl ^of 13 l^vel 
siailon have been completed and a holfns has burn effected *o this level with 
No. i Shaft. ..- • 

General: Mechanical a«T civil wort continues with the erection of tanks, con- 
veyors and filter bultdlnK at the reduction worts, and lanfts and Dunditure at 
the remserailon plauL The rock winder at No. 1 Shan has been commissioned 
by the manufacturers. - 

Wort on the offices and accommodation for ihu mine wcurhy oreanisanon 
has been completed. Construction work continues on (be extension to the 
hquel qoinulux. 

Uranium Oxide: 

palp Treated m 

Oxide producL-d tkg.i 

' Yield ikA.n ...... 


Vlorkins profit: (fold 

Profit on sale ot Urauiutn Oxide 

and sulphuric ,\ cl p 

Net sundry revenue 


WorfciM profit: Gold — — 

Bet sundry revenue - — 

Profit before taxation and Siam's 

share of profit — 

Taxation and State's share of 

prtfli — — 

Profit after taxation a wf State's 
share of profit 

profit before laxauon and State's 

shpre of proiu . 

-Taxation" and -Slate's share of 


Profit after taxation and Stale's 
■hare of profit - 

MEMBERS: In a ixrculor doled 21’ March 1973. which accompanied the annual 
rcoon for the year ended 3L December 1977.- members -wore informed that it la 
proposed to make an offer of. shares to members to ' raise appramnarely 
R30 million.' At the annual ncneral nieciinE to be held on 13 April IKS, members 
wilt be ashed to consider a - special resolution" irrcfeaslng the authorised capital 
of the company, and an. ordinary resolunon aothorlBlii/: the directors to issue 
the new shares created fn terms of the special resolution and (he existing 
unissued shares, po such terms and conditions ns they may del ermine. Subject 
to the passing of the resolutions, and to the special resolution being rccistcred. 
it Is exported that the proposed -offer win be made on 3 April 1978- to members 
registered in the books of the com pi ny on ‘fl April 1978. ' 

Capital expenditure - 

Loan levy 

Loan Mir refund H97H 


Capital expenditure 5£ sto 5® 

Loan levy *2 _ % 

Loan levy- refund 0971! ~ 2.9M 

asss» A fis: ® js i wr-aaK fzss s 


expenditure at SI March 1978 was HG-4 million. 

DIVIDEND: % dividend «No. M> of 13S ««■ «*•»» -^£^£2 
declared on is Dcmuber 1977 and was paid to members on 7 February tsi»- 

capital EXPENDITURE: The MTimsied es ipiial 

financial year lb KlGj unlllon. The unexpended balance of authorised captwi 
cspendlture a' 22 March 1Kb was RI1.S million. 


Carbon Leader _ 

Advanced fori — — — 

Samphns resuns: 

Sampled fml — 

Slope width fere) 

Av. value: sold «s/tY.: — 

On bebaii of the board 

ll April 1UTS 

R . A . Pluinbridac . 
P. W.J. van RcD&buni 


Carbon Leader 


Sampllnu results: 

Sampled *in» 

Slope - u-ulih re-tni 

Av. value: sold (R/U .... 

cnui-T . 

Main Reel 

Advanced tan — 

Sampling results: 

Sampled <m) 

Slope width f em i 

Av. value: cold (g/t> — - 

rm g/ t .. 

Oo behalf of the board 


ISSUED CAPITAL; gruiuary -shares or Ri each, fuiiy paid. 



ore nidli-d tii 

Culd prodUL-ed ihu.i 
Yield ifi/li .. 

Ki-venuc ■ R * milled * . 
L’oai • R-i milled!. ...... 

QU-. ended 


Ctr. endrd 

Veotersdarp Contact Rcei •in- 

Sampling rosulis: 

Sampled <uii 

Stope width <cnu ... — 

AV. value-: sulil iK't! 

cni^/t ... 

Main Reef 

Advanced >np 

gy-Ti ptlnU resulu: 

■* Sampled on* 

Stupe width 'em i 

• -Av. value: gold i«.-n 

cm.g- 1 ... 

u April IK8 

P.W.J. vanRensburg I directors 
R. A. PI urn bridge I • 

On behalf of the board 


ISSUED CAPITAL: 8.00a«H) oharcs of Rl each, fully luid. 

-'rohi- «R.T milled) - 

Revenue i ROOD'S! 

Cost (ROODS' 

11 April 1978 

A Louw 

K- a. Plumbritlso 

profit iKDCU'S! .. . 



Ore milled: 

From underground (O — 
(•■ram tnrlace dumps It) 

Qtr. ended 


Uir. ended 


Working profit: Gold - — — 

Rt-i.-fivery under kms -or j ruins Insurant: — 
Net st-Jdcr revenue . - 


Total it) 

Profi! before taxanoD- and Suic's share ol profit 
Taxation and Stare's share of profit 


Profit after taxation and Stale's share of profit. ' 

Capital expenditure 3-«4 . . s.MJi 

Loan, levy -g - 7 ■•••• - ?!*« ..... r-* w 

j-.lajjb.voy refund fl9.b. — — 

• DIVIDEND: A dividend *No. 9i nf 43 cents *33.77nS0pi oer share was declared 
Off i a .m»m .iih.r.ian_ J iHl .io> l M«L M--me!Mbv«^i»--»-Fcbrearr-IKB 

CAPITAL- EXPENDITURE^ The'e^mfifi/.-Tr.TaiilTllL; rSWUWiD.' f« 'the' current 
•Bnahnal year H R22'!iuUi->n.“ TTie ifin.-xpeiid>4l balance of autburtsed captlui 


ckthk * : - . 

OiY Inllfcd. tit - - 

Cold produced tks-» 

Yield <g/U. ■■■ 

. Reycnoe. fR/l milled) — . 
Cost »K't milled.! 

7,937^00 snares o! Rl each, fulT paid. 

Qtr. ended QU. ended 9 mths- ended 

31/3/1978 31/12/1977 Sl/9/7* 

Gol« produced Ocg-J — 

Yick* ifi/t' - — * 

Revamn iR-'i mffledi 

Cost (R/t mllledT — — 






Profit tR/i mined! — - 

Revcide IROM’81 — 

Cos* iROM'ai — 

profit- t RDM's) 

-nnahnai year 14 R22'niillWn.“ The' ifiicispeiirt.irt 
.vxpvpdinuv at 3_l , March 197S was RS0.3 miUtou. 


Main Reef 

Adiam-fi <mi 

SampHnu results: 

Sampled <tn» 

S<ope width <cm- - ■••• 

av. value: cold ■« I 

cm s l 

prom i R/t nulled) 

Revenue (RDOO'Si : 

Cost tRIWB'S) 

Profit i ROM'S) ~ 

Vcn< erode rp Contact Reel 

Arion'.vd inn - 

Sampiins reams: 

. Sarr-plv* 1 <nn 

Slope wiillb - 

Av. value: gold <e'|! 

•J cm.B't 


Working profit Gold ,4- 

Net sundry' revenue 


WortUtB CoM _ — * 

CotOcibution to Dufl Connoi 

Net sundry revenue 

Profit (loss' oelore raxauon — 


. Korntutf uct — 

■ Nun-intnln* tax — - 

reoouunems tax 

Praia flew) ■ft**’ %*■»•» 

PEttfk before taxation and State's 

shire of profit 

Taxation and Stale's ; fioare or 

Capita expenditure reooupmenis *nat) 

Loan lavy “YT^.T 

Loan. levy. rofnnd (lSTl' — : 

Dividend " 

. Carton Leader 

•' Advanced run 

Sampbos results: 

. j.*' Slope wtdth “» 

• '■ Av. value: gold <c/t» - 

\ run her 402 mctrc>( were advanced tn rhe area held under pmspectiitg permit. 
401 metres were sampled nn the Wnicrwliirp Cotuaci Reel hnrizrin averaumc 
18.5 prams per too over on estimated stupe width of 2SJ centimetres, wj divalent 
to 4^92 cm. it't. 

ProfS afific r taxation and State's 
share of proHt ... — — — 

umosuu — — 

' capital expenditure - - 

Loan K-vy .. - 

Loan levy reAmd (19711 ......... 

□Ividetxl ... .......... 

OU U iwnnuiK* — ■ — 

CAPITiU. EXPCHDITUIICs T«n> i«r. no cMlul 

at SI liarch T9T8. 

11 April 1978 

Cfn behalf "M the board 

- - ' R- A. Plumbridnc \ Directors 
Prti.j.vanRensburp , u * rMlore 

DIVIDEND: A dividend <Nu. 54) or 40 rents «aff7M4pi peri stare jras declared 
■ on 13 December 1977 and was pmd to mmnbeni -on 7 February 19.8- 

CAPITAL EXPENDITURE: The cut I mated capital expenditure fortiie current 

ES33 »2 UBSWI minion. The unexpended balance of uthorisal capital 

expenditure at 31, March 1973 was R1&.3 million. 


Main Reef , < n» « jn 

Sampling ihUk m ..., jug 

Sampled (mi 

Siopc width (cm i . — h — U* *» 

Av. value; gold uyi> Si *•* 

enm/t ... IH SSi G3 

at 5! Diareu - 

M JL.^5 

be held on lSAprQJSTG. the present amount of Rl 

reduclna the «**■*»*. reiunilMi mbM c»1«I 

per share to an anwam of 90 .oww tegiatered In the books of tbe 

to the talent of 1D paastm and rems ration of the 

CTTnp^uy on 38 Jnno 197a. auweci •“ repayment of capital will be 

special iMriattaiLttta Court^f^^ Africa has «mflmed 

SfMS? “ SSiffiSSttf So«S»w» c0mi01 ,wrOTal *“ beea 


11 April 1973 

On behalf of the board 

P.W.J.vanRenaburB l Directors 
r. a. Plvpnbridso I 


ISSUED CAPITAL: 3DJM9.W0 ordinary shares of Rl each, fully paid. 

VenLerodero Contact Reef 

Advanced imt- - 

Sampling results: 

Sampled (mi : — 

Slope wtdth (cm) 

Av. value: said (c'O .... 

cm.B/l . 


On? niillHl *i ■ • • 

Gold produced ikg.) .. 

Yield it-ti 

Ttevetme <R't milled) 
Cost iR'i milk ill 

Qtr. ended 

t*ir. cudnl 9 mUis. ended 
31/12/1917 31/3/1978 




iR'l milled) 

Revenue iRDM’sv — ... 
"Cost f ROOD'S* 

Profit 1 ROM's* 

Ehburg Reef 

Advanced imt 

Samoimc results: 

Sampled (ml 

Slope width i cm! .......... 

Av. value: gold terti .... 

cmji/t - 

Kimborlcy Roel 

Advanced 'ffl) 

Sampling results: 

Sampled (mi 

Slope trtdtb fern) 

Av. value: gold (uai ... 

chls-'I . 


ISSUED CAPITAL: 3.030,008 shares ol Rl each, fully paid. 



Ore mined u> — — — 

Cold produced «ke-> 

Yield IC'D - 

Revenue (R/i milled) 

Cost (R/t tatlkid! — — 

Qtr. ended 

Oir. cMk» 9 mibs. ended 
JJ/72/1977 . 3X/3/197* 

ton (R/t milled) 

No:MlM7o t m8. dTOBS 
in uixembomj. . B.LRT0NS BUIOTINS^ON^ 1 ^ 0 ^ 

-RSA StBSi.'tSB! “ -■ • 

— BaetB^SIimne^aie ttalloiw: Head PAC 1 ^ G m^i^ A o| £ ^^” (“P 301 '-’ 1 *' 

Office and branches. and in the Wauer. m, 

W BOARD OF THE DIRECTORS. . ^prS j ^ggd^Up^ 'S 


komatsu limited Court of JuSilco were, on 1 r«iri 

U^StroocaWdiii Japan)- of roStMISSTONBRS S- cSAm? 

w ® KfSlS 

prejetrtaiJon. to the umierolgwo^^jg^, Royal Couns of J™ 1 ■ d _ of 

^'Dividend per'tliaroi- USM.020455 M any nr ihe said Comptagt ^^ 

ugofsass zgTJi JSASBU— ; 

Net ^ -share .. 2*-^ 

Untied Kingdom iwm Tax a of y, e PeUhOT i tt'IH 

redu cwU iBj sw M i® % aMuS of this by the BBtfeTSiffnc?. -W 

Sk SScre coupons ^nuiburory-rt-gi^of ihe Mid Cbmnanws 

Working profit: Gold ■ ■ 

Recovery, under loss ul .profits 

tnsuranre " 

- Kel Apnd rt revenue - — . 

. .-Profit before laxation and Slate's. 

share of proflr 

’Taxation' and Stiif's snare 01 

• -' profit ' — “ 

‘Praltt ; after, taxation and Stale'* - 
'chare. of 'profit .. - 

“ liooi ■" 

SMA nZ I'sutHVretfcal Stall: The shaft was sunk 3 metres » ®S mems below 
the ctillar nn IS levaL Euulppins tai beep completed m A Lave! and cov 

<lr,I servkc l 'sMft^A^hon-lifi evrvi.f -naft ta bems sunk to 
Main R»-cf below 77 leve» In 'ho nnrih-eaai portion ^ to mme-TWBWiB 
enable wort "n ibe lower level* m be carried out before development trom 
No. 2 Sub-veruca! Shari rnches tite area. 

T^f^hffd^eilecUnn of borehole LBl was completed and a fourth deflection 

-Revenue (RBWs) 
Cost fHBM'S! — 

Loss t RDM's* — 

l ne min' ^-.vvm-u - 

is be Job drilled. .Rflsnlia were as Tojiowd: 


Wsrttog to a*: Gold 

profit on sale of Write- _ 

state assistance i 

Net sondn revenoa 

— - '[ Borehole LBl 

Capital expenditure - — — 

Loan levy • 

Drskk-Bd — — 

Deflection 3 — 











98 J 


DIVIDEND: A dividend 'No. 1R» of 13 cents (SffNMIp) per share was declared 
.Sin DeufOitar 197? and was paid tn members on . February 1973. 
riPi-TAi EXPENDITURE : Tbe cstimaicd canilal expctullnire for the cttrreni 
■ if R1W tnlllwiL The unexpended balance of aulbonscd tapilal 

'espendhure at 31 March 1078 was B433 million. 

PRODUCTION: Apart from two levels In the 49 lone wall nn the north Faro 
Which are ^ bulbs r^unmed. njmin* operations haw been resumed In all 
.aroas previouslv alTected by the Are- 

V.C.R.- 3^74 

ElsOure ,'J9fli 03 
• Inoiboplete core recovery. 





Profit before taxation 
Taxation (noa^ntnlmt) 

Profit after ta xatin* 

Capital expend! turn 

Loan levy ■ ■ 

Loan levy refund (1911) 

On Detail ol the board 

ll April 1973 

r. a. Flumbridae ) 
p. W.J. van Rensburs 1 



MSr^^eaffasrnaa sa 

expenditure a( 3) March 1978 "was R443.W0- 


Voniersdorp Contact Rcof 

. ■ Advanced up) ------ '■■■«’■» 

Sanjpliric rcsulis: . . 

- ■.■Sampled <fflt - — 

. .. Smpc width fenri. ~ 

i-- ' yv. valuer -cold. ik-'O.— 
cma/[ ... 


5. ns 


1 40 







!*■? H 






SH *Na! 'suw/ertical Shaft: Work continues on tbe suppori of rock-pass« 

apfl tlP hlSUllaUOtB. hu» him nnnnliilMl Rmilnninc Id 

30,1 N«? 3 K st!s^ 0l ^nkine dperatlOBS have been com pitied Equipping is 
*hJ5Srii to cronnSre^ln July when Ibe Ko. 3 Suh-V t «ical Shaft ta«t 
rtSmSSt tavern excavated. On 23 LevcL work has commenced on the 
SSs oi to auxiUary shaft headgear. The stage and kibble winder 
datttoxs have been excavated and foundations are being cast 



mg in -.circulation was l* 1 ; t || bolac |Q sufficient time to reach ihe sdo 

FOR SAAB-SCANI/^ AKTPEKI1 ^ ^ ^ . c , 0 ek in (be 

LoodOf. arienionn of to * h day of MaT »*»■ 

iStir-ApriL - - • ; 

U April 1975 

On bebalf of the board 

R. a. plumbndse 
P.W. J.vanEcUahurg ; 

Copies may be obtained from 
the London Secretary, 

49 Moorgate, 

London, EC2R 6BQ 


Main Reef 

Advanced «jn) 

SainpUns resufts; 

Sampled («ni 

Stope width (cm) 

AT. value: gold. f«/t) 

ciTLg/t .— 

VtHtDigtfarp Cabucl Reef 

Advanced f m) 

Sampling results: 

Sampled (mi — 

Slope wMtb torn — 
ay. valflw cob) (S/D 
r caLt/t„ 














' HS5 

















Os behall o* the board 


11 April 197* ' 

F.W.J.vanRenstmn: \ p] rectors 
R. A. PlnnjbridEB I 


- - J 

- -«-• 
• i!' 

liumcial Times Weduesday April 12 1978 

Wednesday April 12 1978 


and Finance 


Although growth rates in South East Asian countries were well above world average last year, 

investment has slowed down because of the recession. Demand for funds fell last year. 

There is also growing competition among the region’s offshore banking centres. 




TTTE ASIAN and Pacific region 
has been no exception to the 
now familial - pattern of too 
much commercial credit chasing 
too few borrowers. Banks have 
had to cut their rates on new 
international loans as they have 
done worldwide. 

But also, in contrast to the 
overall expansion of Eurocur- 
rency credits last year, the 
volume of loans to the develop- 
ing nations of South East Asia 
and the Far East — with which 
this survey is concerned — de- 
clined as well. The S3.5bn. of 
syndicated loans they were 
recorded as havins borrowed in 
1977 was marginally down nn 
3978 and about 14 per cent 
below the level of 1975. 

In part this drop was due to 
the special circumstances of 
Indonesia and the Philippines. 
From being the lnreest regional 
borrower in 1975 absorbing 
$1.8bn. of new syndicated 
credits. Indonesia last year was 
one of the smallest as a result 
of the collapse of the state oil 
comoany Pertamina and the re- 
structuring of the country’s 
debt. Loans to the Philip- 
pines likewise halved last 
year from their level of 
$1.2bxn in 1976 as the Govern- 
ment bowed to the IMF's de- 
mand for a ceiling on commer- 
cial loans of 1 to 1,5 years 
maturity in return for exten- 
ded borrowing under the Fund’s 
special facitity to help countries 
with severe balance of payments 

Both the Philippines and In- 
donesia have recently been 
taking advantage of the cheaper 
international finance now avail- 
able to refinance their more 
costly credits and lengthen the 
maturities. Hong Kong and 

Malaysia have followed similar 
policies. Such refinancing to- 
gether with a tendency to make 
advance borrowings now while 
the market is in their favour 
accounts for niuch of the spurt 
in new loans in the first quarter 
of this year.^ 

But there is no real sign of a 
pick up yet .because of the wide- 
spread wariness at undertaking 
new projects and investments. 
South Korea, the largest 
borrower in the region last year 
among this group of countries, 
anticipates a drop in net capital 
inflows this year because its 
industrial expansion is being hit 
by growing protectionism and 
because its . rising foreign 
exchange reserves have enabled 
a more selective approach to 
foreign borrowing. 

In Indonesia and the Philip- 
pines, the lack of suitable pro- 
jects is reflected in the down- 
turn in registrations of new 
foreign investment — a result in 
turn of depressed markets for 
minerals like nickel and copper, 
uncertainty over the outlets for 
manufactured exports and an 
impatience with government 

little readier than its predeces- 
sors to borrow from the inters 
national capital markets. 

Hong Kong has been making 
large borrowings to finance the 
Mass Transit Railway. More 
such massive projects are on 
the horizon with the develop- 
ment of Lantau. the possible 
building, of a new airport and 
the expansion of the. Colony’s 
power generating capacity. As 

of 1976. The government-led 
construction programme pro 
vided a boost to employment 
and incomes that would other- 
wise have faltered uuder the 
impact of the slowdown in trade. 

Singapore, South Korea and 
Taiwan achieved a larger expan- 
sion in ejqaorts of manufactured 
products to record growth rales 
varying from just under 5 to 10 
per cent. Malaysia and Indo- 

nesian put more funds into 
agriculture and • related 
ventures. Thailand has .under 
review a new law which would 
divert more bank funds to the 
rural areas and to export indus- 
tries. Banks in Malaysia already 
chafe under guidelines which 
reserve a proportion of their 
funds for Malays, manufacturing 
and housing. 

The Philippines last year 

After the surge of. tirteri.fax in Manila is. 5 per cent. .or. securities. " 
nataonal banks into- the region .half that of Singapore. But But beyond its taxad van £□<*.. 
on the tail of the ■commodity' hanks' in Hone Kano en inwd Cwhstpwir thiu 

■ .. i; ‘ ■ 

of the commodity banks' in Hong Kong enjoyed (whatever they may now h* 
boom in 1972-73 and the hectic the 'tax exemption on offshore not *“•' --- 


activity to recycle fands ih tfae deals' before Mr. Philip Haddon- infrasSuct^ ’ 
wake of the oil price increase, Cave, the Financial Secretary^ two other ’a’dvahtaees" nwr ^ 

the last two years have been made his puzzling announce- rivals iii Asia^as ^ 

j. VS- V- ~ a JUi«mCiaj 

something of an anti-climax/ merit in his Budget at the be- centre. The first is thesizeahS 
Citibank and Bgnk of^ America,’ ginning of the mon th. . . 1 number of major, projects liSly 

j ; 

who had been looking to a major ; . o 0 t he face of it what the to go ahead in the coming jtxn 
expansion of the offshore Asian- government lias proposed is (a} - and for which international 

Less demand for funds 

By David Housego, Asia Correspondent 

dollar market in Singapore, *■ 17 per cent tax on profits banks .win be competing to pro- 

: from the interest on banks 1 vide the finance. The other is 

overseas assets (b) the same that it provides a foothold to 
rate of tax on loans raised and the West’s expanding trade with 
lent overseas but booked China; 
through Hong Kong. _ -Welcome to bankers was the 
The result would be to -bring announcement last month that 
within the orbit of tax .bank Hong .Kong will substantially 
earnings not arising in Hong ease its 12 year ban on now 

* £ " . . • 

V5 - .... 

. ir- T - 

fv ‘j"- 

**- -■ 


In Malaysia as well, private 
investment has also been well 
below official expectations, and 
outside the oil and gas sector, 
the government has been largely 
funding increased public expen- 
diture outlays Itself. Thailand is 
becoming something of an 
exception' to . this general 
pattern, with both private and 
public investment picking up of 
late under the new regime of 
General Kriansak Cham man and 
The government also seems a 

a government Singapore pre- 
fers not to borrow abroad, 
though private and public 
investment have held up well. 
A disappointment has been the 
postponement of the building 
of the $lbn. Sumitomo petro- 
chemical complex — the island's 
largest outstanding private pro- 

Notwithstanding this gener- 
ally dull investment outlook, the 
countries in the region recorded 
economic growth rates last year 
well above the world average 
and often higher than their own 
forecasts. Profits of domestic 
hanks — whose operations are 
the backbone of the region’s 
financial structure — have gener- 
ally moved in-line, 

Hong Kong's GNP expanded 
by an unexpectedly handsome 
11.6 per cent, at constan* prices. 
This was in spite of the meagre 
5 per cent, growth in volume of 
exports after the 3d per cent, 
increase which fuelled the boom 

nesia benefited from th? cushion 
of expanding commodity 
revenues from oil, rubher and 
tin which provided the impetus 
for a growth of around 8 per 
cent. In Malaysia the banks 
found themselves du;h with 
funds. Elsewhere demand for 
credit for trade and construction 
remained unexpectedly firm 
though a number of govern- 
ments lowered interest rotes to 
boost productive investment. 

What is emerging is a 
tendency by governments to 
intervene more directly in the 
allocation of credit either to 
encourage what are considered 
economically desirable objec- 
tives, or for social purposes. The 
State-owned financial institu- 
tions of Singapore and South 
Korea have long been used as 
intermediaries in this way. 

But last year Central Bankers 
of the five member ASEAN 
group of countries recommended 
that commercial banks in the 

introduced regulations restrict- 
ing the access of foreign 
companies to local currency 
borrowings on the domestic 
market. This was part of an 
attempt to pressure interna^ 
tional companies to bring more 
. foreign exchange into the 
country through a widening of 
their capital base. In practice 
the authorities had to relax the 
implementation of the rules in 
an attempt to revive flagging 
foreign investment. 

As between Central banks of 
the region there is still little 
co-operation. The ASEAN group 
of countries In August formally 
adopted a ?100m. swap facility 
to assist each to offset short 
term cash flows. But the amount 
is nominal and totally in- 
adequate to stem substantial 
speculative movements. The 
establishment of an ASEAN 
payments union — discussed last 
year — remains a distant gleam 
in the eye. 

.. .. Kong — a step that would seem banking -licences by- allowing 

to run counter to the inter- large 'foreign institutions to 
tried iarv roie thar the govern- establish single’ branch opera- 
have both cut back their opera-: has 80 far encoura « ed - tion s- 

tions there .to concentrate on The ***** yet to ** fuUy 

25- SMS. sl Competitiveness . 

market is overcrowded. Over P Qrt fotios elMwhere-7-Smgapore... Singapore has been seeking 
three-quarters of Singapore M obvious alternative, to improve its competitiveness 
Asia dollar business tiirolvea ]^ hetl, * r . they centre. It has 

inter-bank transactions on which, is another matter. recently tried to develop an 

the margins are smaller than L Up aow ban *?. have Asradollar market in' negotiable 
on the loans to noo-bankme had a f ood ”? ^exploiting the certificates of deposit (CDs)-* 
institutions. The Asian ^dUar lo °P boles m Hon « Kong tax Aediuto-term instrument which 
market in these has laraelv structure - A recent example has -been lacking in . the region. 
b£n cornered ' y.Hoag K<mg^ ‘ has tte J ffsh ° re T** authorities have also 

J * ;r . issued last year for Hong Kbng taken a lenient view on how 
Bat though some banks have Land and Co., jardine Matbeson banks diw’de profits from their 
been winding down or regroup- and Eastern Navigation Cor- ofEshore and domestic activities, 
ing with others, there is still a poration — all Hong Kong-based But with Peking busy signalling 
net inflow of banks into Shiga- groups. These issues escaped that Hong Kong need have no 
pore, Hong Kong and Manila, the norma! 15 per. cent Hong , worries about its future status# 
Of these, Manila has yet to Kong withholding tax on- - In- Singapore is losing a key poiiti- 
prove its claim to be taken terest by being-dehominatecT-fn dal edge over Hong Kong. The 
seriously as an offshore banking. U.S. dollars/ which established attempt by the Hong Kong and 
centre. Sixteen Offshore Bank- them officially as foreign Shanghai Bank— which acts in 
ing Units (OBU*s) have been 1 securities. However, by ex-some ways as the - Colony’s 
established since the offshore pressing the interest and repay- Central Bank— to gain a major 
banking market was introduced nient of principal at a fixed U.S.. stake in Marine Midland in the 
last year, nearly all of them daUar-Hong Kong dollar parity. U.S. is one more sign that Hong 
representing major banks. -On tuey were, effectively accepted Kdng feels secure ip its- future 
offshore to offshore, .loans ike. ..<n, the market as ’ Hong' Kong relations "with’ China. 

c * 

I " 

>-* _ 

•3 “ 


.Jo • ‘ : 

•i-ZS'- - 

I.-, r ” * 

r ■ 


21 ."- ~ 
ir.” i s ■ 

Deutsche Bank, a centuiy of universal hanking 

Money is not our 
most valuable asset. 

When your problem is 
more than just a question 
of money, come to the 
Deutsche Bank where 
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lead to perfection in all 
money matters. 

liegularas airangihgEuro- 
credits or import and ex- 
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phisticated as managing 
domestic and internatio- 
nal bond issues. 

Of course, our credit 
potential and financial 
strength do allow us to 
react quickly to your 
financial requirements. 

Our experts, at home 
and abroad, willapproach 
each problem in the 
most direct and precise 
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And to come up with 
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We act as. a universal 
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Precision is more than a. 

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Central Office: Frankfort fMstoJ/piisselctarf 

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la Mocrgate, P. O. Bar 441 - ‘ . ■ 

ICSSP ZAT.IteleforK 60&A422. 



9 k 

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:v._. _ ...... .. ._ 

financial limes Wednesday April 12 1978 



us %!iri'. 

THE INTRODUCTION of between. .T^videgostt 
Certificates of Deposit (CDs) and a bhijd, is ^fierfcfora . an 
denominated in U.S. dollars into a ttempfc; tp^get .investors to de- 
the AsladoMar market in Singa- ploy theirfandKin medrom-term 
pore on January 3 was a move capital instruments which they 
designed to broaden US base trade in tile secondary mar- 
aud to match borrowers and if they owd. cas ^„ am * 
lenders in a more meaningful ^ch at the sMe tme yrtJl en- 
way. For while the growth of *J Ie l»dmg : ;l»nk 5 to match 

- the AadadoHar market has been &e ““*>“«* 
impressive on paper since to “? 

inception in Singapore ten years m ^S um ‘ t ®2 D i . l 0 ^2Li-. _ 

ago — 1 total assets now stand The 10 certainly 
T over. SuS o"f 

with just $US30m. in 1968 — 

O ut gro wtti has been somewhat (S/lkiilities) “ 

artificial. UJS^21bn. in the Singapore 

Around three-quarters of the 'Asia-doUar market, io less than 
--activity in tfremarket, measured U-S^15.8bit, or just; under 75' 
by- value of - transactions, has per. cent, was inTthe' form of 
Vbeea diderbank ' lending, in interbank funds, .'With the re- 
‘ other. 1 words bankers lending to mainder going to non-bank 

• qr borrowing from one another customers. . ' . 

in order to square their posi- . By the end. of the third 
H/wis and to fund loans put quarter of 1377, total assets of 
together elsewhere. A large the Singapore-based Asnadollar 
volume of the market’s trans- market were $ U-S . 1 9 -S^bn- Of 
actions has thus been of an this, ?U.S-S.575bn., or 4A4 per 
essentially short-term -nature, cent - ww in matunties of up to 

with relatively little activity In one whfl JL iSPZ h! 

the mediuinterm loan and long- ^ er < ^® t - was^acco unted y 

R« 4 nrs «F- «T e maturities of up to three 

SSflL^OtiierwnS** Seh^ months. Altogether, loans of up 
1 S to one year maturity .accounted 

^ £or 97 5 Per cent' “ 01 . the . total 
ctondoate these sectors. - market with the remainder split 
One reason for this is -Hong between currencies' of "oiie and 
Kang’s proximity to major three years and over -.three 
■ boraro wens sim* as Japan. Korea, years. 

Taiwan and the Philippines, as The idea of the ; Monetary 
is the fact that the Colony got' Authority of Singapore now is 
joto the AsiadpRar market to get all or most of the 78'off- 
bef ore Singapore. - ^ Taxation and shore banks or Asian Currency 
Government controls on the Units (ACUs) in Singapore to 

- Asiadollar market are also some- issue short- and' medium-term 

* whar more ooerous in Singa- CDs as a means of correcting 
pore than in Hong Kong. '. these imbalances. ' As CDs are 

However, it ' can also be negotiable instruments, assu- 

; JffuTw another reason for mlQ | ^ at a sl f :es SS h ^" d da S 
the bias -towards short-term market can he established^ m 

transactions . in Singapore’s Singapore— a 

Asia dollar market has been the the hope urthat- Ie ^F? 

lack of the suitable capital in- switch into these in preferenM 

struments : to- attract lenders, to non-negotUble, toejiuterert 
While there is probably no deposits, even if It means taking 
-shortage of business houses and a small Inrerest rate^peoa 1 ^. 

’ wealthy . private individuals Borrowers; particularly the 
. ' with funds to invest in the Asso-_ international U.S. and Japanese 
datum - of South. East Asian banks which ..have W>. loc r 

: Nations: (ASEAN)— in which deposit base^m S^porepr m 

: -Singapore shares membership South-East Asia generally, are 
with. Malaysia, Indonesia, the . supposed to find. CDs attractive 
. Philippines and Tbailancb-^uch. as a means, of .mating 
-funds are hot always available liabilities more closely. *fi th 
-• -for long-term lending. assets.^ - j. . 

The— introduction of . CDs,. .' Initially, the 26 banka 1 
L standing in maturity somewhere; :CTs through their. 

Currency Unto will confine the' 
maturity of these instruments 
to . between- 30 days and one- 
year, ..nalthbugb- even this is/ 
desigited to wean the Asladollar 
market away from the very short 
maturities associated with fixed 
deposits to date. 

'Eventually ! the. aim is .to 
develop a pattern of CD Issues 
of up to five .years and thus 
encourage - depositors to invest 
in medium-term capital instru- 
ments which would enable the 
Singapore-based “ Asiadollar 
market to boost its medium-term 
financing without prejudice to 
the matching of assets and lia- 
bilities (In New York, where 
the CD was invented, around 95 
per cent of all those outstanding 
have maturities of one year or 
less and the bulk are for 3-6 

Whether Singapore : can 
successfully collar the medium- 
term part of the market depends 
on whether it can attract a heavy 
volume of funds from Europe 
and the U.S. comparable to that 
which Hong Kong is able to 
attract into Asiabond issues 
through syndicating them inter- 


The U.S.$2bn. - stee of the 
Singapore Asiadollar market 
pales beside the estimated 
U.S.$200bn. Eurodollar market— 
of which the London-based CD 
market alone represents 
U.S.S20bTL, according to U.S. 
banking sources. 

Thus Singapore-issued US 
dollar CDs will have to be at 
least as attractive as the 
London-4 ssued CDs, which 
presently draw large quantities 
of funds from Europe and the 
U.S. There is evidence that UA 
international banks operating 
here have resisted suggestions 
from the monetary authorities 
that they might initially offer a 
premium over what they offer 
as interest on a London-issued 
CD in order to stimulate the 
market here". 

The first day of activity In the 
Singapore CD market brought 
issues of betwen US$50-$75m., 
mainly of one, two or three- 
month maturity with nothing 
over six months. Some bankers 
had expected to see premiums 
of 0.0625 per cent or more 

offered over London rates in 
order to stimulate overseas in- 
terest, butreportedly there was 
foreign demand at lesser rates. 

Disappointment in some' 

quarters that the first-day issues 
had not reached $US200m. 
could be attributed to their 
reluctance to offer sig nifi c a nt 
premiums, as the issuing houses 
and market-makers were trying 
hard to market the new securi- 
ties among their corporate and 
individual clients. 

In fact the U.S.$200m. mark 
for issues was not- passed until 
the end of January. Issuing 
banks and market makers were 
reluctant to' suggest that the 
experiment bad flopped in the 
light of this, however, arguing 
U.S. Federal discount rate plus 
the uncertain outlook for the 
dollar had held back the CD 
market not only in Singapore 
but other major international 
financial centres as well. 

Strictly speaking, US. dollar- 
denominated CDs are not new 
to' Singapore, as Citibank made 
such an issue back in 1970 when 
the total “footings" of the 
Asiadollar market here' were 
less than U.S.$400m. The issue 
flopped, allegedly through lack 
of maturity at that time in the 
Asiadollar market, then only 
two years old. Last November 
Dai-Ichi Kangyo Bank and 
Sumitomo end East Asia have 
each made floating-rate CD 
issues denominated in U.S. 
dollars. Both were well re- 
ceived by the market. 

Even so, although there were 
initially plenty of takers for 
the issues, including South- 
East Asian and West Asian 
central banks, secondary mar- 
ket activity since has been 
slack. There have also - been 
hints from Japanese bankers 

here that CDs denominated in 
yezt : might, eventually make 
their' appearance in competition 
with; U.S. dollar certificates if 
the ' - Japanese Government 
accedes to persuasion from 
Japanese bankers. 

There is the demand as well 
as the supply side of the equa- 
tion to consider, however, and 
some bankers feel that signifi- 
cant premiums will have to be 
offered in order to attract in- 
ternational interest in the 
Singapore-issued CDs. ' 

With the minimum invest- 
ment set at U.S.$50,000, both the 
monetary authority and some 
banks believe there is a market 
for CDs among wealthy indi- 
viduals in the region — such as 
in Indonesia for example — as 
well as among corporate 
treasurers of regional and multi- 
national companies. Singapore 
also hopes to interest Middle 
East investors in the securities. 

Before they will buy, how- 
ever, and before international 
banks and bond traders will 
regard Singapore as another 
stop on their trcms-global net- 
work of centres for switching 
their -CD portfolios — the repub- 
lic’s time zone location enables 
it to trade after the close of 
trading in New York and Lon- 
don— the secondary market 
mechanism must be fully estab- 

At this stage two U.S. invest- 
ment banking houses, Merrill 
Lynch International (Asia) and 
First Boston (Asia), are pri- 
marily responsible for making 
the market in the Singapore- 
issued CDs. Both have opened 
offices >n Singapore — First 
Boston specifically for this' pur- 
pose — and there are a number 
of local merchant banks also 
helping to make a market 

There is- talk . ' that A. 
G. -Becker, part of the ; -War- 
burg Paribas Becker .. group, 
may also set up officfe, and 
Salomon Brothers is expected 
to tak *» part from its Hong 
Kong office, albeit through a 

local representative. 

Altogether, there are around 
00 authorised depositories— 
banks and. other financial insti- 
tutions — serving the new CD 
market To avoid “ having too 
much paper floating around 
Singapore," a CD clearing centre 
has been established and is 
being operated by the Hongkong 
and Shanghai Bank in Singapore, 
-which is the Singapore agent for 
Euro-dear. The clearing centre 
collects and pays interest on 
the CD’s, which are in bearer 
form, and makes a charge on 
the depositories. 


The CDs can be traded inter- 
nationally, although at present 
participation is restricted to in- 
stitutions with offices in 
Singapore. One factor which may 
encourage overseas demand is 
that CDs issued here will have' 
the names of international or. 
solid local banks behind them, 
while Asiadollar bonds some- 
times suffer the disadvantage of 
corporate names which are 
not Immediately recognisable. 

One school of thought in the 
financial community here, how- 
ever. is that with interest rates 
apparently having bottomed 

out internationally— Citibank 

pukied up its .prime rate from 7 
per cent to 7.25 per cent in the 
first week that CDs were issued 
in Singapore — the risk of capital 
losses on CDs could deter some 
investors. Likewise, the recent 
'decline of the U.S. dollar and 

the 1 immediate outlook for that 
currency ... - points^ to some 
currency risk in! CDs. 

. The trade-off is between these 
risks— equally a further soften- 
ing of interest rates could bring 
an improvement In _ capital 
values, while some t hink the 
-U.S. dollar has no further to fall 
— and the flexibility CDs give 
investors wanting to liquidate 
their assets without incurring 
the interest penalty applied in 
Singapore on prematurely cash- 
ing a fixed-interest deposit. 

With many uncertain factors 
in this equation, some observers 
feel there, are at least the tech- 
nical makings of a secondary 
market in Singapore-issued CDs 
and that corporate treasurers, 
along with wealthy private in- 
vestors, may be in the market 
actively before . very long. 
Whether the CDs can dd for the 
Asiadollar market what the 
London CD market did for the 
Eurodollar market remains to 
be seen, however. 

Meanwhile a report from the 
U.S. Embassy in Singapore has 
revived the debate over whether 
a relaxation of tax levels and of 
bureaucratic controls is re- 
quired in order to stimulate the 
republic’s growth as an offshore 
financing centre in South . East 

In particular the report sug- 
gested that the Asiadollar sector 
is burdened not only by taxes 
which are higher than in Hong 
Kong before the proposed 
changes under Hong Kong's re- 
cent budget and in Manila but 
whose incidence is also higher 
than would appear from the 
nominal rate of 10 per cent, on 
fees earned from offshore 
borrowers, including interbank 

This may explain why two 

leading U.S. banks, FiwR 
National Citibank and Bank of 
America, have recently scaled 
down their Asiadollar opera- 
tions in Singapore in favour of 
Hong Kong. 

However, if Singapore is un- 
likely to reduce further the rate 
of tax on offshore operations— 
it needs the revenue to help 
finance growing public services 
and social welfare expenditure 
— the authorities may act to 
reduce the actual incidence by 
allowing for separate book- 
keeping transactions on offshore 
and domestic banking. 

‘ The U.S. Embassy report also 
talked of relatively onerous re- 
porting standards required of 
banks in Singapore compared 
to the much more lax require- 
ments. in Hong Kong. Even 
bankers seem to accept, how- 
ever, that while these require* 
ments are as exacting as those 
for instance, in America they 
enable the authorities to 
monitor the market properly 
and to produce good official 

There were welcome signs 
last year that the bond sector 
of the Asiadollar market in 
Singapore is beginning to ex- 
pand. Bonds issued in the re- 
public probably totalled around 
U.S-$350m. against a previous 
record level of UB^266m- in 
1976. The recent refinancing of 
a loan to Indonesia with syndi- 
cation arranged in Singapore 
was also taken as a good indica- 
tor that although interbank 
lending still dominates the Asia- 
dollar market in Singapore, the 
proportion of lending to non- 
bank borrowers, inducting Asian 
ones, will continue to grow 



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75008 Pari* -T«1.2fi6 20.20 

Central Offices : 44, rua da Courcelles 
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Asian Network 


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We believe that banking on Grindlays in Ada Pacific 

means just what it says* 

Executives of Grindlays Dao Heng Bank 
4( visit sin important customers textile 
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Members of the management team 
of pur new branch in Seoul dismiss 
ECGD finance of XJJBL equipment 
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Head .Office: 2 1 -V!4, NishikI 3-c.So.-ne, Ticking Nagoya. iiri.; 053-21 M n 1 Overseas Network: (Branches a Agencies) New York, Los Angsts*. London. 
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.Tokai Sank Nederland N.V., Tokai Asia LknitEd; lAHi&nas & Assoc ia^s) London. Paris, Bangkok, Hong Kong & Sydney 


- v : ^baancial T&aes Wjejine^ay 'Apidi 


LENDING TO East Asian bor- to give. The two major 
rowers (excluding Japan) borrowers have without doubt 
got off to a flying start this year, been Indonesia and *■ Sooth 
Over $Ibn. worth of loans were Korea. The first borrowed 
either completed or announced much less last year than in 1976 
in the first ten weeks of 1978. but earlier this year signed.: a 
During the whole of last year, contract for a $575m. seven-year 
only $3.5bn. worth of loans twthtranche loan carryi ng ••• a* 
were arranged, a slight drop on spread' of 1| per cent through- 
the 1976 figure of $4.15bn. The out A loan for the state aih 
reverse in trend in 1978 has line Garuda quickly followed: 

i ASIAN BORROWING 1975-78 . 

■'V- • :'■■■. V 

'. South Korea - 

: 1975 . 

•' 347 

1976 - 





L . Malaysia 


207 :: 


540 " 


, '363 

970 ■. 




’ . 135 



’ — 

- Indonesia 

r 1,348 : 


.817 • 


' Thailand 



too, . 


./ " • 

■ ‘r 



major loans: $400 m. for the and with ho guarantee. The 
Mass Transit Railway Corpora- Indonesians are welcome ' bor- 
lion of Hong Kong, $400m. for rowers as bankers feel vfh* 

Malaysia and $5 75m. for country is sorting out - ifcjj 

Indonesia. economic problems and improY- ihe' 1 per, cent, for seven-years Manhattan Asia, will b e used to 

This intense activity Is not mg its current account position, which was agreed on the. last cover part of the cost Of uq 

necessarily all sweet music to South Korea has been a much loan to The Central Bank. \ . goods and services for the <»nw 

bankers’ ears as the terms the sought after borrower in recent; :The Central Bank of tfce P aiiyVl 98 fr 82 base loan power 
borrowers are able to achieve years. A $100m. loan forPohang 'Philippines is .currently project and wasarrsngedfomtlv 

are *wr finer Mnrt Iron and Steel has recentiv heen n»onHaH nor a SUlAOm lnsrrt wKinh p iu 

getting ever finer. Most I f 0D and Steel has recently been negotiating a $400 m. loan which With tJ.S. Ea m barA - pinan ce.' 
countries in the area are signed, and the Korea Electric" will be for ten years and Carry The : last inTine ThsMian* 
refinancing loans raised a few Company is considered to be spread of I per cent This been a 7 reluctant 

years ago for which they had to mos t likely next cnstomer .Operation will be in tbe'fpnn wjniiffh ft has stpnrfihr fnrT«i^ - 

pay higher interest rates for on a^nt of its nudear:p^f * dub. - 1.. ; 

shorter matimries than they are Promts. • J_ .. . , - . . the form of medinmterm lom 

able to get to-day. Tbe legal argument which was TnVPCflP'ilf lfYIl over the past three years. It 

It makes sense for countries still running last year aiwat ^ V cSllgdUUU -has recently named Chase 

whose foreign reserves 'are whether guarantees provid^ by . Bankers say they are. not Manhattan : Asia as financial 
higher to-day than two or three the Korea Development , Bank Worried by a possible Congress adviser' to the 'Natural Gas 
years ago or whose balance of and the Korea Exchange Bank investigation into alleged fraud Organisaticm of Thailand, whose - 
payments situation is healthier ao represent the ' full faith and on the nuclear power project major pipeline project is esti- 
t> repay loans early and contract credit of the country remain contract which has been mated to require' $50Qm_ or 
new ones on cheaper terms. unresolved but appear to. many financed in part , . through more in loans. Howeyer nmcti ' 

Malaysian borrowers can get a bankeis to be somewhat medium-term loans raised two of. that might be raised" this 

spread of } per cent on their academic. y«ars ago. . year, a decision is expected in 

borrowing, Philippines’ state Malaysia is another customer On the bond ' market the the next few months. Mean- 
guaranteed organisations I per finding much favour with the Philippines has floated two DM while Dresdner ttunir has 
cent, non -state Indonesian banks and the Sooth East bonds in recent months. The arranged a DM5Qm. private 
organisations 1 per cent., and Asian borrower which to-day has second had a very bumpy, ride’ placement for the Kingdom of 
the Hong Kong Government 1 achieved the finest terms in the in the secondary market, but Thaila nd. This was the first 
per cent But as yet there is no market for borrowers from. this as to. whether the country could foray of Thailand into this 
evidence of any pick up in loan part of the world— $400m. for continue raising money in the particular market 
demand in the West and the eight years on a spread of j per form of Eurobonds is difficult Most bankers -expect the 
trend of softer terms for most cent ... to say. Much depends, mi how- volume of loans to South East 

borrowers evidenced in South- The next Malaysian project that particular market develops Asia to rise this year, though 
East Asia is likely to continue which should provide bankers in the months to come.- . - they are -not entirely happy 
for the time being. with a ' good opportunity lor. Taiwan has raised one maijor With the ;Veiy much cheaper 

The fall in spreads for these business is the major gas loan so far this year: $73m. for terms whirii all major borrowers 
borrowers can also be explained liquefying plant . which _ '.the Taiwan Power Company. The 'expect to get .when nrfring 
by factors which have little to authorities in Kuala Lumpur loan is in two tranches, one of -funds. When and to What de- 
do with market trends, and are considering. No $53m. for seven" years, at a gree the market turns, with 
relate directly to economic decision is expected until later margin over intEr-bank rates of spreads rising and maturities 
factors particular -to each this year. The Philippines bor- 1 per cent for the first three possibly shortening, a matter ' 
country. Indonesia is a case rowed much less last year than, years rising,to If -per cent for for speculation. Many in the: 
in point the year before but got off to a. the last four; and. the other .of h ankiing ^o mwinnl ty hope it wd - 

The two tranche $575m. loan quick start in 1973. Further 820m. for nine years, with a- not be too long. . . . • ' . % 

loans are expected very soon, margin of If per cent The loan. . ’«* • « • 

on softer terms . probably thiinWhi^h was managed .by Chase ‘ . f 1*3 I I C I S VjuIISS . 


for the Republic of Indonesia 
s that country’s first major 

loan in many months and was 
also an exercise in rebuilding 
the confidence of the banking 
community after the PertLmaua 
affair. The borrower might 
have achieved finer terms if he 
really bad tried to but that 
could well have nullified the 
psychological aspect of the 
operation, in this instance an 
essential one. The fact that the 
national Indonesian airlines 
Garuda was able to raise money 
with a longer maturity and a 
lower spread than the Republic 
few weeks later is explained 
not so much by any quickening 
of the improvement of Indo- 
nesia's financial situation as 
perceived by the banks as by 
other factors. 

i.->i ■ 4 ,/ 


SOUTH KOREA’S economic accounts surplus. domesticaUy-av ail able foreign 

planners have a problem that But faced, with the rising tide exchange, 
makes them the envy of their of protectionism in' its major New foreign bank branches 
counterparts in other develop- markets,' particularly the U.S. opening' in. South Korea are 
ing countries : too much foreign and the European Economic given a $5m- ceiling for "swap” 
exchange. Community; Seoul's economic transactions. The previous 

_ . . According to Seoul’s economic planners are worried that South ceiling had been $10m. 

Bankers prefer to Know waere biuep^n^ foreign exchange re- Korean export growth could be- ..Foreign currency loans 
tbair money is going; into ouy- at ^h e en d of 1977 were gin to sag: unless rite country extended by foreign banks for 

Log aircraft in this case rather supposed to rise to $3.7bn. from can move away from the li^it purchases of raw materials are 
than a general purpose loan. An [he $3bn. of the previous year, industrial product sales which abolished and replaced by lend- 
aircraft also happens to rep re- instead, buoyed by higher-than- have borne the brunt of the ing mechanisms which make use 
sent an asset which can be more expected Middle East construe- protectionists' wrath- Foreign of foreign reserves already in 
easily Impounded in the event tion revenues, they soared to bankers are hoping that Seoul's the country, 
of default Airlines tend in about $4.5bn„ and South Korea’s planned conversion to produc- As * result of these and other 
any case to be run on a more. fiscal engineers are now grap- tion of more sophisticated steps, bazikers in Seoul say that 
commercial basis than major pling with way to curtail money goods, both for export and home where a year ago a new foreign- 
projects ... let alone a coun- supply growth 3nd beat back in- sales, will require significant tank branch could expect to 

flationary pressures. infusions of foreign capital. make a profit wi thin perhaps six' 

well^ajf officialise l There ** reason “ ' be " m0nths of besilra ' ng <*"*•*»*.< 


try's budget 


Apart from 

ever cheaper 
borrower, tbe 

Economic Planning Board, be- 
lieve the solution lies in a com- 
prehensive programme of im- 

terms for the 
possible moves 

trailer of the currency in Wash- 
ington is another source of 
worry for some bankers. The 
proposed ruling that loans to 
governments and government culty competing 
agencies would be counted as imported goods. So 
going to the same borrower they have introduced a 

port liberalisation. But moves 
in that direction have so far 
been slow, primarily, because 
the Government believes domes- 
tic industry would have dlffi- 


lieve this will be the case, it will now take closer to two 
though. Ihe outlook for the ban- years. The South Korean Gov- 
kers is deaiiy not as bright as ernmeiit is : believed to have _ 
it once was. In 1978, long-term decided to allow only three ■ ■> 
capital inflows are expected to more foreign bank branches ..*> • 
drop to $1.7bn. from the $L9bn. this year, although It' hopes the . 
of the previous year as tbe freeze on new operations can be 
Govennnent adopts an increas- withdrawn in two or three years .. 
ingly selective attitude, towards when it has a firmer grip on the _ s;;? 
in , r . a j long-tenn loans and invest- problem- of influx of -foreign-^;.-' 

. meats. Public loan arrivals are currency. ' ’* 

projected at' $600m. with com- 

could test bank ceilii^s on lend- of controls on foreign currency "iS o^r’ - N c evei ? jeless ’ ft ^ 

: * tab, —ntri 0 r . merelal loans put at just over ^ Seoul are confident that in 

$lbn. and foreign equity in-, the long term . South Korea 
vestment arrivals at $80m. . still , reitresehts- a very profit- 

able market Capital construe- 
PrPfU^Q tion IS'boonung and the trend 

\ylCUxio .. jg towards" further expansion. 

sNnft term canitai inflows . A number, of. major projects: 

_ , 'Ci' 1 J 

-z ; 

ing to certain countries. entering the country and, as a 

But details of this proposed result, the burgeoning network 
ruling, which would also affect of foreign bank branches in 
many non-Asian borrowers, are Seoul is facing the prospect of 
stili unclear. If rules were a reduction in profits, 
tightened, this would certainly At present, there are 30 
help Japanese and European foreign bank^branches ope ratio 
batiks which have 
ingly competing with 
in this part of the '■ 

^ by" cutting back San^f } 

Grind! Chunju DaS^e “- r ^\ 

high lays. In fact, a total of 15 new ing them with foreign exchange d construction at J^usan • 

foreign hranches began loans, carrentiy held in South *5* ^ 

operations in 1977 and early Korean vaults. 

its banks have found tiiemsrives £ 19 ?f ^6 eS Korean” vaults. 'Trade crests tions 1 ork , on fl ^ 

the position of matartg 1978( spurre( j by the prospect of for imports and advance pay- 

toreign curren^loans to South SBJhS oneTf £? % 
Korean borrowers. Furths most rapidly expanding non- 
more. South Korean borrowers petrodoIJar economies, 
can raise money to^ay without Economic growth in 1977 was 
providing the traditional a bout 11 per cent and' this year 

guarantee from the Korean should be about the same. 

ments for Seoul’s exports will-**? Okseo area deveiopment 
he strongly discouraged. 71,6 foreign portion of costs on 

a* praiffl tatfe smn. 

^ «««'5sr * 

, J *7- 
VS.*- i-i •- 

Development Bank or the Korea sig'nificantiy, 1978 wfll probably some real problems for foreign caS^One^^S : 

Ririianw Rank. c n „th v n ». antar tuc hivntirrc Amonfif the notable rereign . wpnai,. vine « . 

is a second Integrated steel 
mill,- on whidi site selection 

Exchange Bank. see South Korea enter the IMF- bankers. Among tbe notable 

Borrowers from the area are defined ranks of the developed measures taken- so far have „ _ r selection <- - 

also be gin nin g to have access countries as per capita GNP been; : ■ ■ ■ work is already under war. If. 

to the Eurobond market South passes the $1,000 mark. A rise in the ceding on short tbeW 

Korea. Malaysia and the Philip- The Economic Planning Board term import loans offered , by. approved . it would cori:: 'VK* ! - 

pines have already floated bonds has expressed general satis- local banks exclusively about $4bn. - ' . 

also has Thailand. The faction with last year’s progress, $250m. to $50fim. - 


so has Thailand. The faction with last year's progress, Even with the spectre of pro- r.v^ . - v 

market, which provides aod notes with particular happi- ‘Swap transactions between yp pythritum. ‘Korea’s export 


long-term money is traditionally ness that domestically generated foreign branch banks and the iooks bright and as . 

reserved for borrowers which savings now cover s»5 per cent Bank of Korea* whereby the a fyfc service ratio, pro* 

are considered very good credit of investment needs. Two years foreign banks obtain won m ex- are veiy encouraging- ' -i- 

risks, usually Western Govern- ago the figure was only 66 per change for foreign currency,. ^ mrvitx ^0 for this' ;■ \T. 
ments, their agencies and cent • axe frraen year wiU be abd«t 1L7 per «nU- 5. 

Western corporate names. The key to South Korea’s Interest rate for short gboaM dMiine progriKftgygy^^*^.^ 

A round-up of the situation economic success has been its foreign currency loans ttvm. o^ ^ j^t ^everar yeais. ^ 

in each country provides some rapidly expanding imports. Last both domestic ana oversaS j^gj ^ 

indication of borrowing require- year’s sales broke tbe $10bn.' sources are reduced across the 1( ^5 w cent. ' 

ments this year, even though mark and for the first time the board in the hope that \ • WemtTaHD . 

the precise calendar is not easy country enjoyed a current rowers will make greater, use of ■_ .... .**?**.: ; V^.V-* 

^ .. r.- - . :v i -:’i 

'Vtspp^JS^ Wednesday April 12 1978 



’s banks boost 

profits. . . 

reflected the -strong momentum 
that the Hong Kong economy 
has s ustain ed over the past year; 
i in spite of rather dull external 
conditions, money supply grew 
at a steady 20 per cent during 
. 1977 while ; the pace of lending 
accelerated, with a 25 per cent 
gain.. As. the inflation rate re- 
. mflined at fairiy low level — a 
v 5.8 per cent rise in consumer 
prices and an Overall GDP defla- 
tor of only three pear cent — t his 
represented a healthy enough 

The GDP meanwhile grew by 
' 1L6 per cent in -real terms and 
' by 15 per cent, terms, 
' making, for the. second succes- 
sire year in which double digit 
• growth had been achieved The 
\ . rise followed an increase of 16.9 
per cent in 1976 .sind for 1978 
. the -Financial Secretary -in his 
budget forecast that 1978 would 
Bee another.- gain of a healthy 
eight to ten. per cent in read 
terms. These performances have 
. silenced, some -critics who had 
/been saying the colony's 
'*• economic performance was fail- 
ing to Seep lip with that of its 
l sprightly East Asian neighbours. 

. ' South Korea ~ and Taiwan, or 
even with Singapore-— though 
: that island republic's days of 

persistent double digit growth 
now seem well behind it 

The current, and continuing 
growth of the economy is 
primarily the follow through 
from the great. 1976 export 
boom, when exports hi real 
terms rose by no less than 30 
per cent, in one year. The sharp 
rise then in. personal, and 
corporate income took time to 
be reflected in either consump- 
tion or investment Consumption 
grew at only two-thirds of the 
pace of GDP in 1976. But it 
more than made up if* 1977, 
with a jump of 15 per cent Ait 
the same time there was a spurt 
last year in capital, spending 
which rose by 25 per cent 
Investment in plant and. mach- 
inery was surprisingly ' strong 
considering the unsettled world 
economic picture and seemed to 
reflect the surge in optimism 
which occurred in 1976 rather 
more than the 1977 outlook. But 
the most obvious spur. was con- 
struction, which rose 34 per 

The public sector was the main 
lead with building work on tfie 
Mass Transit Railway reaching 
a peak of activity in terms of 
local employment This coin- 
cided with the Government's 
own public works spending 

. . . as 

• OF THE MAJOR components of interest tax./ They, could then 

- the- Hong Kong economy, none onlend those funds. As . bath 
has grown more rapidly in borrowing and lending were off-, 
recent years than services. And shore, no' tax was payable on 

■ within that sector, financial ser- the profits gained. From this. 
- : vices have been- to the fore, situation evolved a- system, 
especially externally related ser- which was complicated but* 
vices. suited bankers in various ways* 

This represents a swinging Banks or finance companies 
back of the pendulum. Formerly could borrow funds from assofi- 
the economy was almost entirely afes. ' -f 

dependent on. entrepot trade and ^ not ^ ^ 

related banking, insurance and Merest tax. The funds ' would 
other services. Then in. the yjg n ^ on i en t to a borrower 
1950s and 1960s there was the overseas. The profits 'from the 
amazing growth of nmnufactim- Jeni|ljl g . wnad 

mg industry-— mostly, highly | n Hong Kong but would 

specialised indus ^ y f or *^ regarded as -having been 
garmentsand to^Bat fbe ianfed outside Hong Kong and 

1 5 70 L ha ^ s f en tous not *». s«Wect to profits 

the trend towards mamrf**ur; ^ at ^ ^ of ^ 

F^oancial jjiLsiness can be seen from the 

tourism have outstripped indu^ offlc i aI At the end 

■^ 7a2 o T ro ^ n S of 1973, licensed banks in Hong 

• Kong owed HK$8.9bn. to banks 
been transferred^ from goods to OTergeJB j whi]e loans t0 banks 

^Bnanm! services. - overseas totaUed HKSlOBbtL, 

- Part of this proce^ has b^ .. other foreign - loans 

• a result of the pattern of econo- -• • • - 

aresniroiroepav e ™ UI P^ HKSI.Tbn. By the end of 

mcd^opmmt|n Uie regioTL the je^e^e fig 

"In Hong Kong^s case -the. raw ... * n ftrsvij 

-Industrialisation of the 1950s mgs. 1 ^^ 1 and HKS10 lbn 

“ d JSSSr- St 

- a natural shift towards the ser- were ^ ^ £^$37^ HK$35bn. 

j-nce sector. • - . and HK$18bm respectively. 

This has been further helped these remarkable statis- 
. by the pace .of growth in neigh- understate the situation be- 

oouring countries which has cause many big foreign banks 
Uso led to demand for special- which were unable to set up 

- aed financial services. In part branches because of the ban on 
.'.'the process has been due to the banking licences, set up 

imbalances in trade and pay" local finance companies to carry 

■ nents arising out. of the 2973 on offshore lending. No finance 
-. )il price rise. In 1972 and 1978 company statistics-' are pub- 

:here was an influx of banks bat it is thought that 

wd other financial services into there is now as 1 , much offshore 
■3oag Kong in the wake of rapid business on the' books of the 
■economic growth, and the stock fiance companies as on those 
. narket boom of that period, of the licensed banks. 

' iut the slump which followed. 

*' ironically saw Hong Kong’s __ 

Position continue to grow in i^fOlllS 

The newly arrived financial Inevitably the growth of off- 
nstitutions were well placed to s bore business has been watched 
.rake part in the massive redis- jealously by the competitive 
Jibuti on of resources necessary centres of Singapore and Manila. 
.* if ter the oil tuisis— the so-called jjj e Government caus?d 

; Jollar recycling process. As a by seeming to play into 

• result, many new: banks con- of Hong Kong’s rivals 

' inued to setup in Hong Kong, viheh it unexpectedly announced 

- :• iither through representative- ^ j^te February its intention to 
: iffices or locally .incorporated j ax pjojy-g on ne t interest 
;■ inance companies, to partake earned .on loans arranged by 
’ n the lucrative. lending iraair faaflk branches and finance com- 
iess. Three of the largest .bor- paniesin Hong Kong.- ' 

--owers in the developing world ... . V- a;.' 

vere an situated ^thiu Hong . ^ 

Cong’s catchment area— Indo- mean toes® P^ fits wo ^ d . ^ 
lesia. South Korea and the taxed .■* HtouglW ■ 

'■ Philippines. Additionally there Vt per c ?? t J®* 2 e 

../vere -several other- countries 

. vith capital needs and a credit- 1 Pore and . Manila. It remains to 
/ ‘ible economic performance— be se^ ^ 

' - s ike Malaysia and Thailand, not eminent pushes this new tax aim 
, -o mentotttHong^ong its01t- and whether it damages a»ng 
in the earlv'davs Hong Kong Kong^s- -role as an offshore 
. eemed very mudh^to be play- centre. . Some bankers suggest 
ng second * fiddle to Singapore it could lead to more loans being 
.L.-.L nut nf its way passed through the book of 

bSes . elsewhere, even 
efwreSgitsteTrate to thbngh the bankers themselves 

■ ~ 15°^r SSS convenience and lack of red 

ax oa interest which made it- tape, 
ffectively impossiWe for banks Apart from that which goes 
3 accept US. dollar deposits through local books at present, 

’ . rom offshore depositors. But there is a lot of lending business 
lany bankers soon concluded arranged by representative 

- lat Hong- Kong was a satisfac- offices hr Hong Kong which is 

• iiy enough place anyway- A . not recorded locally. However, 
'‘icai tax ruling determined any move of the paperwork to 

- jat local banks could borrow other centres would have some 
,-inds from associates offshore impact on related professional 
'ithout Kfehiff cmffronted; witii services in Hong-Kong. Bankers 

suddenly lifting off after falling Average wage rates in manufac- 
behind schedule in the previous turing rose 12 per cent, while 
two years. Private construction those in the volatile construc- 
activity was also very healthy, Hon sector jumped 20. per cent, 
rising about 30 per cent in As domestic demand gathered 
response to the surge in spend- momentum credit volume began 
ing power which - sent rents, to increase with a resultant 
especially in the residential sec- impact on money supply. Con- 
tor, soaring past the 1973 boom struction and home flat pur- 
peaks. (Curiously, the rise in chase absorbed a lot of funds, 
land and property values was not or at least commitments, none- 
reflected in the stock market theless. The tightening 'of 
despite the heavy dependence liquidity expected later last 
of the market on property y ear was not especially marked, 
related issues.) and best lending rate, which 

had twice been reduced earlier 
, in the year, remained at 4.75 

browth per cent 

^ All this activity was being 

The construction boom sustained, however, on the back 
. absorbed some 15,000 extra of exports which in real terms 
workers directly. At the same grew only 5 . per cent. This 
time service industries, catering slow growth seemed mainly the 
to both domestic demand and result of weak demand in major 
the external sector, added many markets, particularly for 
thousands. Tourism had a garments, Exports to Germany, 
strong year, with hotels fully Britain, Australia and Canada 
booked during the peak season, all fell markedly. And It was 
and the financial sector bad only fairly strong demand, from 
further rapid growth. So though the U.S.. plus growth in. sales 
the manufacturing sector shed to smaller trading partners, 
20,000 workers (the textile and which kept expansion going at 
garment industries lost 384)00) all. But there were . also 
the overall labour market questions as to whether the 
tightened. Unemployment fell strength of domestic demand in 
to 4.1 per cent, in September Hong Kong was not crowding 
end wages continued to rise, out export manufacturing, or 

pushing up wage rates to un- 
competitive levels in some pro- 
ducts. The Financial Secretary 
warned of the danger of domes- 
tic overheating hurting exports, 
on which all else ultimately 
depended. However, if the 
Financial Secretary was worried 
it did not show up in his 1978 

Despite his forecast of GDP 
growth for 1978 of 8-10 per 
cent, even though he put ex- 
port growth at only 5 per cent' 
He did ' not take any evident 
steps to restrain domestic de- 
mand . — again the construction 
sector is expected to take the 
also feel it is inconvenient to lead, pushed by a further big 
have too many split functions, leap in Government capital 
Singapore already has an in- spending and continued 
frastructure for doing the paper- strength in private building, 
work so some business could go The budget itself, he estimated, 
.there. Bahrain is also now said would be roughly in balance 
to be competitive from an opera- compared with a surplus of over 
tional standpoint HR$lbn. in the 1977-78 fiscal 

But whatever happens on the year (ending March). The past 
tax question it seems unlikely two years have seen the Gov- 
that the tremendous growth of ernmeirt sector acting as a de- 
offshore financial services seen flationary force — roughly off- 
in recent years will continue at setting the additional demand 
the same high level. This will created by work on the Mass 
have some impact on Hong Transit Railway. 

Kong’s overall GDP growth Some commentators were 
(value added per worker in thiq surprised to find the Govern- 
industry is several times higher ment providing additional sti- 
than in manufacturing) but mulns at this time. But others 
Hong Kong is unlikely to cut its considered the fiscal outcome 
own throat for the sake of a would again be much more con- 
small- amount of taxation. It servative than forecast, 
should have little problem in It was clear that domestic 
remaining the region's premier activity could not continue to 
offshore financial centre as well rise faster than .exports. Mean- 
as continuing to generate a very while the new textile agree- 
large amount of domestic me nt f orced on Hong Kong by 
business. the EEC in late 1977. after much 

' -n ' r-t j hard bargaining and threats, 

o y a Correspondent left almost no room for export 

increases in 1978. For this 
year, export quotas have been 
pegged at below 1976 levels — 
though a little over 1977 per- 
formance levels. Thereafter, 
allowed growth is at very low 
levels. By 1978, exports would 
have to return as the prime 

Some concern exists that the 
world outlook will continue to 
be dull into 1979. By then two 
years of heavy domestic demand 
could have pushed wage rates 
too high to take advantage of 
any new export opportunities 
available. The key to the situa- 
tion may be tbe behaviour of 
the exchange rate. Since the 
Hong Kong dollar was floated, 
the exchange rate has, it is 
thought, become the principal 
medium for Hong Kong’s ad- 
justment process. 

(Previously the process acted 
mainly through the interaction 
'of the external position with the 
money supply.) Last year the 
Hong Kong dollar fell, reached 
an all -time peak early in the 
year, and then fell quite sharpiy- 
By year .end it was 6.6 per cent, 
lower than a year earlier. This 
partly reflected a move from a 
small visible trade deficit of 
HK$1.7m. in 1976 to HK$3 Bhl 
last year. For 1978 the deficit is 
expected - to rise further, 
perhaps to as much as HK$6m., 
as domestic demand continues 
to outstrip exports. Haddon 
Cave forecast export growth of 
6 per cent, asainst 10 per cent 
import growth. 

liquid assets in Hong Kong are 
hard to find). 

Otherwise, the financial sec- 
tor has been having a fairly 
quiet time recently. A flat 
stock market has discouraged 
new issues and even Hong 
Kong’s biggest ever merger, be- 
tween Hutchison International 
and H K and Whampoa Dock 
late last year created little stir. 
However, it seems to have been 
third time lucky for local dol- 
lar certificates of deposit. 
After false starts a few years 
ago, Wardley, a subsidiary ■ of 
the Hong Kong Bank, began 
offering CDs of various maturi- 
ties and was followed soon after 
by Chase Manhattan and Citi- 

By a Correspondent 


Merchant Banking Services 

1405-08 Hutchison House 
10 Harcouit Road Central 
Telephone: 5-240041/4 

Telex: 83450HX 


Shareholder Group 

• Kuwait Investment Company, SjV.K. 

• The Industrial Bank of Japan, Limited 

• Banco do Brasil 

• Bank of New South Wales 

• Canadian Imperial Bank of Commerce 

• Yamaiehi Securities Company Limited 


What this will do to the 
exchange rate is not at ail clear. 
In theory, it should fall further. 
But some sources suggest it has 
already discounted the larger 
trade deficit, and meanwhile 
there will be substantial capital 
Inflow associated with the Mass 

The deficit is expected to have 
some contractionary effect on 
money supply growth. With 
drawdowns being made on con- 
struction loans, it is generally 
thought that interest rates will 
tend to start upwards. 

Though rates have been low, 
the rapid growth in lending has 
helped the local banks to some 
comfortable profit increases — 
28 per cent for the Hang Seng 
Bank, and few expected it to 
be much under 20 per cent. 
However, some of the shine was 
taken off the banks’ situation in 
the .‘budget when the Finan- 
cial Secretary announced that in 
future they would be taxed on 
the interest earnings of over- 
seas assets where these derived 
from Hoag Kong operations. 

This will effectively hit those 
banks which for various reasons 
hold a substantial part of their 
assets, particularly* liquid 
assets, outside Hong Kong 
(apart from interbank loans, 

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was below both that year’s tar- 
get and the preceding year's, 
rate. The Government put much 
of the blame on high interest 
rates. It said these were hold- 
ing back investments and rein- 
vestments in new productive 

The private sector insisted, 
however, that the slowdown was 
more the result of recessionary 
pressures abroad. But the mone- 
tary authorities nonetheless 
overhauled the interest rate 
structure before the end of the 


Based on preliminary esti- 
mates, gross national product 
amounted to pesos77.6bn. last 
year (the average peso-doll ar 
rate then was 7.40-to-one) com- 
pared with pesos73.2bti- in 1976 
at constant 1972 (base year) 
prices, up by only 6.1 per cent, 
and lower than the 7.3 per cent 
of the previous year. 

Provisional data also showed 
slack in domestic consumption 
and investment Personal con- 
sumption expenditures at 
pesos49.7bn. last year were up 
by a meagre 3.8 per cent over 
the preceding year. Business 
outlays in new machinery, 
equipment and other facilities 
at pesos20.9bn. were up by only 
3.6 per cent There was a slow- 
down, too, in the growth of 
gross domestic capital forma- 
tion: a 3.6 per cent rise to 
pesos21bn last year, whereas 
the increase posted in the pre- 
ceding year was 6.6 per cent 
To give the economy a boost 
the Government incurred a 
deficit of pesos2.85bn. in its cash 
operations last year, or 
pesos3.4bn. more than the pre- 
ceding year. 

Also the central bank made 
drastic changes, in the interest 
rate structure, to bring dewn.fl» 
cost of money. - , > 

M axim u m deposit rates' were 
maintained at 7 per cent, for 
savings deposits and between 
8.5 and 12 per cent for time 1 
deposits, thus maintaining^ this 
existing incentives for savers-^ 
but the Central Bank declared 
basic loan interest ceilings ,as ; 
effective rather than nominal' 
rates, thereby limiting the room 
for manoeuvre on markups and 
other non-interest expenses 
charged by lenders on bor- 
rowers. These basic rates were 
12 per cent on secured and 14 
per cent on unsecured loans 
maturing in less than 732. days, 
and 19 per cent on.' loahs^ 
whether secured on unsecured, 
maturing in over 730 days. - 


The maximum, yield on depo- 
sit substitutes, or debt instru- 
ments traded on the money 
market with maturities below 
731 days, was likewise declared 
as effective instead of nominal, 
and reduced from 17 to 16 per 
cent effective last January :and 
to 15 per cent, effective next 

To compensate the banks, a 
traditionally nan-earning! por- 
tion of their funds was allowed 
to earn a 3 per cent, interest — 
CB itself started paying interest 
on that portion of the required 
bank reserves deposited, ■with 
the Central Bank for clearing 
account purposes. As a farther 
compensation, the monetary 
authorities scrapped a so-called 
matching requirement- under 
which a bank’s outstanding long- 



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The British Bank of The Middle East 

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Members of The Hongkong Bank Group 

SINGAPORE continues to pro- 
duce and plan a series of innova- 
tions designed to give the 
republic's financial sector a 
more dynamic role in South- 
East Asia and to boost foreign 
exchange earnings. While the 
sector contributes a good deal 
less to Gross National Product 
than does, say, manufacturing or 
trade, it plays a vital part in 
closing the visible trade gap. 

Thus the authorities are 
anxious to promote the sector in 
every way possible, particularly 
as South-East Asia as a region 
appears to offer liberal oppor- 
tunities for the “export” of 
these services without the threat 
of protectionism which looms 
over trade with the developed 

In this context the growth of 
the Association of South-East 
Asian Nations (ASEAN) is seen 
by Singapore as providing scope 
for the republic to expand its 
onshore, and offshore financial 
services* to its neighbours. This 
too could help offset the effects 
of a prospective reduction in 
Singapore's traditional role as 
an entrepot centre for some of 
its ASEAN neighbours’ com- 

Many of the financial develop- 
ments seen in Singapore over 
the -past year need to be viewed 
in this light, as well as being 
reflections of the fact that the 
republic is essentially a planned 
socialist economy despite its 
apparent laisser-faire attitude to 
private business. 

Probably the most important 
single development was the 
introduction of a market in 
negotiable Certificates of 
Deposit denominated in U.S. 
dollars to boost the Asiadollar 
market, which is the key to 
Singapore's role as a regional 
financial centre at present 


On the assumption, however, 
that Singapore’s ASEAN neigh- 
bours — Malaysia, Indonesia, 
the Philippines and Thailand — 
will wish to finance their de- 
velopment in local currencies as 
well as the U.S. dollar, and 
through a wide range of capital 
instruments, the republic is 
doing all it can to foster its 
primary and secondary financial 

If government and corporate 
borrowers in ASEAN are to be 
persuaded to issue bonds in 
Singapore in order to fund their 
requirements (thereby boosting 
foreign exchange and fees for 
the republic) they must first be 
assured of a capital market 
which is broad and deep. So 
runs the monetary authorities* 

A tradition of secondary mar- 
ket trading in bonds must be 
created in order to attract in- 
vestors as well as borrowers 
into the market and it was with 
this in mind that the Central 
Provident Fund (CPF) — a 
statutory body akin to a pension 
fund — was nudged by the Gov- 
ernment into bond trading early 
this year. 

The CPF is by far the biggest 
holder of government securities 
in Singapore and the hope is 
that its intervention will stimu- 
late the sluggish secondary 
market in these securities. From 
there it will be only a short 
step to getting an active market 
going in other gilt-edged and 
corporate bonds in Singapore, 
the authorities hope. 

Whether these hopes are justi- 
fied remains to be seen in the 
light of the sheer size of the 
CPF in relation to other finan- 
cial institutions in Singapore — 
a far cry from, say, Britain, 
where a host of pension funds 
and insurance companies as 
well as trusts hold- large gilt- 
edged portfolios. 

The danger is that the CPF 
will remain the only market 
maker of any significant size, 
the merchant banks having re- 
sisted official pressure to become 
market makers in their own 
right and the discount houses 
concentrating mainly at the 
short-term end of the market. 

There have been suggestions, 
however, that Singapore should 
establish new leading institu- 
tions, along the lines perhaps of 
Finance for Industry in Britain, 
which would help fund indus- 
try's financing requirements and 
thus siphon away at least some 
of the funds which currently go 
into public infrastructure devel- 
opment via the CPF. Sec urities 
issued by a Singapore FFI would 
enhance the range and maturity 
of the secondary bond market 
it is argued by bankers favour- 
ing such a move. 

It also remains to be seen 
whether ASEAN countries will 
move to develop their own 
capital markets to any significant 
extent in competition with Sing- 
apore’s— as Manila is doing — 
possibly employing foreign ex- 
change controls as a means of 
keeping sucb business within 
their own shores. 

While Singapore does all in 
its power as a State to enhance 
its regional financial role— and 
its innovations are certainly im- 
aginative— there are those who 
argue that greater freedom per- 
mitted to private pension funds 
and insurance companies would 
expand the role of these finan- 
cial intermediaries, whose pre- 
sence is more essential to an 
active capital market than that 

torn loan portfolio must not 
exceed 80 per cent of its time 
deposits, and its purchases of 
receivables ' and other: lOUs 
.maturing in over 730 days must 
-be equal to its deposit holdings. 
The scrapping of the require- 
ment should release for lending' 
purposes substantial amounts 
.otherwise frozen- _' 

Although the Central Bank 
had imposed ceilings on access 
by foreign companies to domes- 
tic credit resources based on the 
debt/equity ratios of the bor- 
rowers, it in practice made the 
.-regulations flexible enough as 
.-to- ensure no undue interrup- 
tion of credit flows.' The' bank 
allowed liberal exemptions from, 
the -governing debt/ equity ratio 
requirement, and extended The- 
period for adjustments' of exist- 
ing local borrowings to the pre- 
scribed ceilings. ■ 

Thus, in the period between 
July fast year and eariysJanuary 
this year, some SBfro. pesos in 
local borrowings by 192 foreign 
companies had been approved 
by .the monetary authorities. 
Complaints from the .foreign 
business community. of .a 
squeeze resulting; from the im- 
position of a cefting began to 
dry up. 

~ As of the end of February, 
access to credit was easier. This 
seemed due both to the interest 
rate restructuring and to the 
beginnings of offshore b anking ; 
not to mention overseas finan- 
cial conditions which tended to 
favour borrowers. During most 
Of the -past two months; rates in 
both the inter-bank -'and inter- 
company sectors of the money 
market had -been* on . the low- 
side even in the absence of a 
usual expansionary factor, a fav- 
ourable balance of payments. In 
fact, there was a BOR deficit of 
about 92 m. in December, though 
1977 as . a, whole was positive. 
The 2.4m. surplus recorded last 
January was ' weld below the 
monthly average last year, 
burned out, (the major Jn- 
ce on money market 
vioar was -the entry or im- 
pending entry of foreign funds, 
mainly via offshore banking 
units (OBITs). 

With economic recovery in 
many industrialised countries 
slow, big Western banks and 
other financial institutions in 
search of loan placements have 
been looking at possibilities in 
the Philippines through their 
respective OBUs (16 at the end 



your businesses 
our concern v 

■ wax* 
- ■: .MWaUMaini. 
- , •e-H-wctr* 

-43Wi»MniKniiw - 


'**■*)•. representative 
offices .-.(15) r and branches 
(four). , With o&ti&spof rep- 
resentatives, the 1 overseas lea- 
ders were better able to assess 
the quality- of the risks. That 
they were satisfied by the feed- 
back about such risks, was per- 
haps indicated by the f&ct that 
foreign loan syndications for 
local financing requirements had 
been on an ever increasing scale 
in the past two months. - 
The Central . .Bank itself 
secured a $ 100 m. loan from a 
consortium led by . Manufac- 
turers llano ve r Trust fbr'relend- 
ing -to the State-owned Philip- 
pine National (Shipping) Line 
and the Bureau of Public High- 
ways. Recently it approved a 
financing - refinancing scheme for 
Marinduque Mining and Indus- 
trial Corporation (MMICj under 
: which it will . borrow 9150m. 
abroad for relending to MMIC, 
with 940m. intended to finance 
MMICs cobalt refinery project, 
530m. to finance Marinduqne’s 
nickel inventory and 880m. to 
refinance the mining company's 
existing foreign obligations. In 
the last-named, the. Central 
Bank win be trying to cut the 
creditors* spread by paying off 
the used portion of an old loan 
with a new loan, obtained at a 
relatively cheaper cost 

/ *■ 


All this has taken place while 
the - question, of how much the 
International Monetary Fund 
(IMF) would set as the external 
budget ceiling for the Philip- 
pines, was still unclear; An IMF 
mission was .here* recently, and 
the indications: then were that 
it wo* Id recommend a maximum 
of 9950m. In commercial-term 
foreign credit availment for this 
year compared with the Central 
Bank's requested amount of at 
least .9980m and last year's 
ceiling of 9860m. 

Although the monetary 
authorities^ had adopted a 
“ borrow -how - instead-oHater H 
policy in the belief that the 
prevailing -ease on international 
capital markets would, not last 
for a long time, .they had been 
closely monitoring all private 
and government sector borrow- 
ings in order to make-sure tint 
foreign ■ funds' of the non- 
concessional type would not 
exceed the expected ceiling to 
be fixed by jthe Fund. 

sr " ’ 

L. P r Gonzaga 




" Head Office: 24-26 Jatan Asemka, Indonesia 
TeL: 272458-59 277488-89 - 

Telex: BCA 1^42860,42613 


Branches in 10 major cities 
throughout Indonesia . . . - 

• Other Shareholder Members:. _ . 


. san jBANg^V-7;;-..iv r -.- - 




V-. J J.-- . 



r -financial ’Times^ Wednesday April- 12 1978 


I ■■ * . :■*""• *;-v • * ■ V",f .. :]■ ■ ■ ^ ■ •£ : - ■ . . 

“i ■■■ ■■■ :■»- ■■■■ 

) i 



DESPITE A year of drought chronically depressed textile 
and bad harvests, official alarm Industry, have been beginning 
. over . dwindling fg reign reserves to recover overseas markets as 
. and . a disquieting , hoom on 'the. efEective devahiatiQn- of the 
. Bangkok's .unsteady stock ex- bah t_ -while it was 1 tied- to the 
f change, Thailand’s; commercial declining doUan made Thai pro- 
, banks. have, chalked up .another ducts jnore. competitive abroad, 
year of : Undisturbed, 'growth. . In vestment is showing some 
Last ■; year . bonk deposits in-, ■encouraging .- . sigo$i '} - although 
creased by- 23 per- cent and mostly in-'the medium Tange 
; loans, by 25 'per-cent. Profits projects «. of- $lm, ’ to . $2m. 

■ were . equally gratifying, -rang- The unexpected' - boom in 
jng between 16 to 2d per-cent. -Bangkok’s 1 stock .exchange left 

- .as ■a." return on equity - and many brokers not only non- 
between- li and 11 per cent on piussed but also short of cash. 

■ earninff assets., - Bankers- consider, this another 

. - ,-But'wfcile all agree that these force pushing up interest rates. 

. . figures indicate how steady the Monthly turnover . of the Securi- 
. pillars of .Thailand’s traditional ties Exchange of- Thailand 
banking system remain, there is C SET) shot up from a ' low of 
some, controversy over 7 how Baht 88m.- in -January 1977 to 
desirable -this is -for the nation a dizzy height of Babt-Bbm the 
as a /whole. Most businessmen following November. 'The shai- 

■ view: bank", profitability as. axe-* low -base of the exchange (with 

- assuring counterpoint to Thai- 30 listed - compahies.. and an 
land’s continuing political un- equal number -of- broking firms) 
certainties. Some -central bank combined with, the^freefor-ali 
officials however, consider -tra- rules to allow- blatant, specula- 

- ditional lending patterns as an ti° n . extensive insider : trading 
obstacle , to a more' enlightened, ^nd a ' disproportipxtate degree 

- if less; profitable, credit policy of broker exppsur§. ; :. ... 
for national development By _ . _ 

promoting legislation to allow KPlOlTTlS ■ 

tighter -controls on commercial . • - , 

bank profits tber Bank of Thai- In November the SET stepped 

land is serving notice that it in- in with reforms to restore order 
tends to be>.inore - active in and broaden the market s .base. 

■future. ■. £ i 

Margin requirements were intro- 


- The most obvious feature of d ^ced 811(1 set at 40 P® 1 f* nt - ' ^ 
Thailand’s money market- over 10 P? r 

inauauu s -lutuusy moiivsi- uvci -- *--- — - . , , ... 

the past year has been the was imposed on, shares JjW Jj 
dramatic rise in interest. rates. individuals -within; six^onths 
as the banks moved from excess & Purchase. To ^nco^-mote 
liquidity to;tight credit For the. companies to- go .puhhc, cor- 
1 firet three quarters of, 1977 the P°™te taxes on unlisted com- 

interbank lending rate-rthe key "ere 


and the 10} oer cent ' land ’ s stock exchange. ... 
October the 10} per cent jj eanw hi]e, - the ; Ministry of 

it stands at nQW* . . -■ . • > Finance has managed : to slip 

The; Jump, iuinterestca es th gb a - i 0 hg-obsttucted‘ regu- 
,in: recent, months . Ltion ? ^ the* tax 

: " on '. onJ ' ; ^ k : sw* 

Business has recovered over the' ing_ balance of payments deficit 
-■nB<st" vear and warehouses are bn interest rates is.controvergiaJ. 
• bSdtag np long depleted Until I97fT Thailand'* cxto^al 
stocks. - TbaHand's export manu- payments positron was positive. 

• lh-the ; :glbce tbefiBe deficit has-gffiwn 

to an estimated $350m. last year n 
and is expected to reach $60Qm. t 
in 1978. -While the country’s p 
oil bill will probably escalate to c 
$l.lbn. in 1978, there will be I 
less than half of last year's s 
record rice exports u£ 1.8m. s 
tonnes available this season c 
because of drought. Planners * 
expect the foreign ... exchange t 
reserves to wither by ?800m. c 
over the year, falling to Slbn. or E 
less than two months’ imports. , 

While payments deficits tend J 
to draw money out of circulation 
and raise interest rates, this ^ 
trend could well be off-set by ( 
the large overseas loans the Thai 1 
Government and Thai corpora- j 
tions intend to raise this year. * 

The Government’s recent , 
attempts to .ban the import of 18 , 
“ luxury ” items and put stiff j 
tariffs on another 141 consumer < 
imports were coordinated with 
moves to tighten ■ credit. The 
central bank raised its discount 
rate — the interest it charges on 
borrowing by commercial banks 
— to 101 per cent from 9 per 
cent. Private banks followed by 
boosting their interbank lending 
rate to 10} per cent from 93 per 
cent., the largest single jump on 
I record. 

Just over a month later, on 
March 8, the central bank untied 
! the baht from the dollar and 
announced that its value would 
j be quoted in terms of a “ basket 
, of currencies.” Although the 
j move was co-ordinated with a 
I mew schedule' of import tariffs. 

I it seems that long-term fears 
. that the OPEC countries would 
, make substantial sales of dollar 
5 holdings prompted Thailand to 
_ sever the 15-year link between 
r the two currencies. 

A combination of baht re- 
valuation and high tariffs on 
f luxury items may manage to 
j hold, down the overall import 
. bill — officials project an overall 
£ saving of a quarter of the over- 
t all trade deficit-^vhile making 
investment goods cheaper. Com- 
pensating measures, however, 
1 will have fo be taken if the 
i savings are not ultimately to 
, come out of the long-deprived 
, rural sector whose export crops 
will become less competitive on 
?i world markets through higher 
1 prices. 

I The central hank is - also 

moving to strengthen its con- 
trols over commercial lending 
policy. A Bill currently under 
consideration will allow the 
Bank of Thailand to impose re- 
strictions on commercial banks 
so that the more profitable lines 
of credit will be consistent with 
national development objec- 
tives, principally loans to agri- 
culture, agro-industries and ex- 
port-oriented manufacture. 


In 1977 commercial banks 
were required to lend nine per 
cent, of their total deposits to 
rural areas. The target for 1978 
is 11 per cent, or Baht 14.5bn. 
The central bank has also ex- 
tended its line of credit to the 
Government Agricultural Bank 
from Baht lbn. to Baht 1.55bn. 
Commercial banks have also 
been expanding vigorously in 
the provinces. Last year 95 new 
branches were established, of 
which 76 were up-counffy- 

Paradoxically, Thailand is 
one of the. few developing 
countries more concerned with 
its payments deficits than its 
outside lenders. The central 
bank's excellent debt manage- 
ment record and the reputation 
of its governor. Dr. Snoh 
Unakul, for prudent and enligh- 
tened management offset the 
current deficit in most foreign 
bankers opinion. Thailand, has 
only borrowed $3I7m. on the 
Eurodollar market over the past 
three years. 

Despite the World Bank's 
counsel to Thailand to seek more 
commercial credit, there is a 
preference for softer develop- 
1 ment credits. . Of the $860m. 

scheduled for external borrow- 
■ ing in the fiscal year which 
1 began last October T. only 
1 3100m. or $200m. are expected 
c to be sought from private 
1 sources. 

• The fact that Thailand is 
i raising two Eurobond issues in 

• April — one denominated in yen 
. for $41m. and the other in 
5 German marks for $25m. — is 
1 viewed by many foreign bankers 
1 as a sign- that the country’s 
5 credit rating remains very good, 
i despite current, and probably 
r temporary, economic setbacks. 

o Richard Nations 

-i ' - * 

•• fc, 

l»>. Ilill BH — - 

It is part of the land, 

It is part dour soul. 

It is one faced Japan. 

Sumitomo Trust-, A part of Japan which thinks in terms of the world. 



& Banking Co, Ltd 

A Japanese bank specialized in long-term financing 
with total assets of US$19 billion 
{September 30. 1977) 

LONDON BRANCH: 62/63 Threrlwdl-? Sneat. Lcmdon _EC2RSBR Wwgf ^SankRJrV Q FFIcIf fmmusaniaqe 11 T*i#phnnp:l.i611-25LW71 


- ... 



Social welfare is serious 

consideration in mosVrtefiero societies. Man 
in the twentieth-century accepts Jus 
responsibility to bequeath to the ti ext 
generation a society better than his^owiv 
Daivva Bank is not unique io accepting this 
responsibility, but Daiwa is unique m making 
^ r«-» i/s hi enriptv an integral 

T R aU 

si* ; 

responsibility, oui lycnwa - - - 

acceptance ot this role in society .an Integra 

□art of iheirbanking service. • =- • 

. , Daiwa is the only Japanese city bank^to • 
combine 'bankhipand trust -business. Daw a is 
thus a fully integrated; banking institution, 
comprising banking, international t™"'- 
trust/pension trust, and real estate business. 

This-integration is part. of our effort to tultij our 

social' respoifsibiUty consistent with society s 


fuHy integrated banking service 


- nir* 

, v • 

iU'f London Wdll, London 

Escheisheinier lands.rasse 14, WOO F.anUurt 
am Main 1, F-R- Germany. , ... - - 


ioi^VKtrvreBanf^: P.Tv Bank FBidinia.|atarta, 
incernatipoat Cred'it^lHance} Ltd Hong kong . 

of State institutions. The CPF mi 
enjoys tax concessions which an 
tend to stifle the growth of pri- 
vate insurance and provident sli 
funds. bj 

It is also argued that banks m 
such as the Development Bank bt 
of : Singapore, in which the nt 
State has a 49 per cent, stake, ti 
and which is not subject to the w 
limits on the type, size and — 
security 1 for loans imposed on P 1 
purely private sector banks, 
operate at an unfair advantage, rj 
Likewise the phenomenal - u 
growth of the official Post Office a , 
Savings Bank, partly because it u 
is permitted a more liberal v 
branch-opening policy than are ^ 
the commercial deposit banks, „ 
is a factor which some of the “ 
latter banks suggest may stifle 
their growth in future years. 

- There is also a danger that J 
Singapore is becoming over- t 
banked, particularly in terms of ® 
merchant banking. A recent re- c 
port made by a commercial e 
attache in the U.S. Embassy in f 
Singapore suggested- that “ sojone r 
of the banks that established j 
offices here several years ago - 
expecting to deal primarily in 
loans outside" of Singapore are 5 
■ becoming dissatisfied as the s 
island becomes saturated with < 
representative offices, small off- ' 
shore operations and merchant j 
banks; all competing in a • 
smaller- loan market in S.E. 1 
Asia to-day than existed before.” 

' The report cited the example 
-or -two U.S. banks— Citibank 
and Bank . of America — which 
had recently scaled down their 
Asiadollar operations in Singa- 
pore in favour of Hong Kong. 
As some banks and other finan- 
cial' operations leave, others 
epme, however, and at the end 
of January Merrill Lynch an- 
nounced that it was opening a 
second 1 office— nan investment 
bank— in Singapore, to' focus on 
. the Asia dollar _markeL 

Over the past two years the 
number of banks •iperating in 
Singapore (including merchant 
banks and representative 
■offices) has increase J from 128 
to 144, of which 3$ are from 
the - U.S. Of the 50 biggest 
banks in the non-Cnmmunist 
world, 44 are now represented 
' in Singapore. 

There are also 34 finance com- 
panies — which again complain 
■ of unfair competition in that 
their depositors do not enjoy the 
tax-free interest concession 
offered to POSB depositors, and 
also that the CPF pre-empts 
much of their role m mortgage 
finance — as well as four dis- 
count houses, five- international 

money brokers, 26 gold dealers 
and 67 insurance companies. 

If activity has been rather 
slack of late for the off-shore 
banks, except in the interbank 
market where margins tend to 
be narrower than on lending to 
□on-bank customers, the domes- 
tic banks have enjoyed some- 
what better times. The big three 
— Oversea-Chinese Banking Cor- 
porationi United Overseas Bank 
and Overseas Union Bank — all 
reported better profits last year. 
Unlike the banks in neighbour- 
ing Malaysia, which have been 
awash with cash they were 
unable to lend in a sluggish in- 
vestment climate. Singapore 
banks have enjoyed reasonably 
good demand for loans from 
commerce and industry- . 

On the securities industry 
front, Singapore again moved 
, to enhance its role as a regional 
■ financing centre with the intro- 
duction in February 1976 of. an 
experiment in trading stock 
, options, a move which it was 
, hoped would attract investment 
[ Erora beyond as well as' within 
, Singapore, and again boost 
i foreign exchange flows. Unfor- 
> ornately the launch of the pilot 
\ scheme coincided with a period 
i of exceptional dullness and low 
_ volume in the equity naarkel 
t and thus the stock exchange was 
a forced to resort to the device of 
issuing “in the money” options, 

” with the striking .price lower 
than the exercise price — Option 
® premiums are left *o close the 
- gap — in order to preserve even 
Q modest interest in option 
r trading. The whole option mar- 
ket experiment may even yet 
be scrapped, however. 

I- Faced with a continuing 
■? decline in the volume of share 
d dealings, the stock exchange 
1_ announced plans in. January to 
modernise and centralise its 
ir operations, in the hope of saving 
n broking firms from closure and 
of preventing further redundan- 
| e cies. 

in Central to the exchange's 
11 second five year development 
7e plan is a proposal to establish 
*8 a central clearing house and to 
m computerise payment 1 and 
st delivery accounting, as . well as 
51 a scheme for an authorised 
?d depository and a Securities 
Finance Corporation. By cutting 
down the processing time for 
"5 scrip from typically up to 24 
J* days to 24 hours, it is estimated ' 
that the clearing house and com- ! 
puter scheme could save broking 
firms up to a .million Singapore 
lts dollars a month each in over- 
^ heads. : 

ai’ Anthony Rowley 

Bayerische Vereinsbank - like Japan - 
combines tradition with progress. 

With total assets of DM 64 billion Bayerische 
Vereinsbank is one of the major banks in the 
Federal Republic of Germany. BV - a bank 
with a tradition dating back to 1 780 - has 
considerable experience and a wide range 
of services in international business. 
Branches in New York, Chicago, Los Angeles 
as well as Grand Cayman. 

A Euromarket subsidiary in Luxembourg. 
Representative offices in Caracas, 
■Johannesburg, London, Paris, Riode Janeiro 
and Tehran. BV has been represented in 
Tokyo since 1969. 

For further information Bayerische Vereinsbank 
please contact: Head Office Munich 

Kardmal-Faulhaber-birasse 1 
D-8000 Miinchen 2 
Telephone: (08?) 21 32-1 

Telex; 52 33 21 bvmd 

Bayerische Vereinsbank - full service 
in our new Tokyo branch. 

Covering the important Far-East market is 
no easy task. What it takes is know-how, 
contacts and- experience. And that s just 
what our branch in Tokyo is equipped to 
provide. To make the Far East seem that 
little bit nearer. To give you the qualified 
advisors you’ll need. And to offer you an 
efficient and comprehensive international 
service for Japan and the Far East. 

Talk to us, we'll gladly advise you. 

Bayerische Vereinsbank 
Tokyo Branch 

Togin Building, 1-4-2 Marunouchi 
Chiyoda-ku, Tokyo 100 / Japan 
Telephone: 284-1341 
Telex: j 26351 bvtyo 




'•y s 



Mid-day loss of 4 on profit-taking 


£ firmer 


NEW YORK. April 1L 

AFTER THE raUy of the past Emcn Air Freight, on a 10 0 Federation study showing a better its dividend payment for 3977- recent weakness. However. PinBI 

five trading days. Wall Street per cent, stock dividend, picked business climate. Elsewhere an Motors, BMW declined 40 to 12,010. 

plotted an easier course this up i to S39>- RCA, however, were However, some irregular points declined DM4, while Mercedes and SPAIN— Market started the 

morning in an active business. down i at 525 despite higher first- were Banks and investment com- Daimler were marginally easier, week on a much brighter note. 

The Dow Jones Industrial quarter earnings and a prediction panies, while Foods generally Siemens shed DM2.70 in Elec* prices mainly rallying to leave 
Average recorded a reaction oF of another record year. eased. t rira ls, while leading Banks, the General Index 1.01 higher at 

Oil Service stocks were lower Electricals were the firmest Chemicals and Engin eerings were 91.76. PetraZeos advanced 5JSQ 

on analysis bearish comments sector, with CGE. CIT-Alcatel, LMT mixed. points to 163 and Banco Popular 

about the sector Schlumberger and Thomson notably higher. Public Authority Bonds S to 215. 

1, IP Halliburton t to Elsewhere, Crensot-Loire, Esso recorded losses extending to 25 JOHANNESBURG— Gold shares 

rallied in response to an improve- 
. . __ . ment in Buifion prices. Trading, 

trend continued in quiet trading, recent Federal Loan issue. The however, was stack ahead of the 

Astnrienne, ' Union Miniere, Regulating Authorities bought a British Budget and President 

Vieifle Montague, CocKeriH, UCB nomiad DM7 .9m. of paper after Carter’s ants -inflation speech. 

Ffnoutremer and Electrohel, afl malctng no net izderrention on Financial Minings were mixed. 
MB at M noon’^fter 1 volume of made headwa *> hut Wagons-Lits, Monday. Mark Foreign Loans while other Metai? and MfcuSds 

31 0 Gevaert and Mosane were easier, were Irregular. 1 closed quietly firmer. 

des fj te «*anriy lower SWITZERLAND— Mostly weaker HONG KONG— After initial 

nn^hi^p^ 1x1 continued light activity- firmness, market lost ground on 
In v, M °?,'r „ 2? 1 ?: i npH although selling pressure increased selling towards the close to finish 

proBts - S""* lD at during the session as investors on a mixed note. 
pjf rs -a^nu. _ reduced their positions in a market JardSne Math es on ended 10 

AMSTERDAM— Prices remained lacking buying interest cents down at 9HK13.00 on local 

firm vein, although Dutch Union Bank fell 95 to selling after toe results, while 

Closing prices and market 
reports were not available 
for this edition. 

ASS at 7B9.32 at mid-day, while 
the NYSE All Common Index 

I--, * 1 t» UP Elsewhere, Creasot-Loire, Esso recorded losses ertendin- to 25 

$aai, and Hughes Tool . to S2Si. and Petroles BP were also strong, pfennigs on a. strong fevel of 
Beech Aircraft added i at $391 BRUSSELS — The hardening offers, prompted In part by the 
on higher second-quarter earn- in n.,w — 


logs,, a dividend increase and a 

slipped 18 cents Id 550,40 nnd three-Iop-wn stock split. 

declines outpaced gains by a 
seven- lo-fi ve margin. Trading 
volume amounted to 16.30zn. 
shares at noon. 

Analysts attributed the decline 
to profit-taking and aTso investor 
caution awaiting what President 
Carter proposes to do about 
inflation and dollar weakness in 
his message later to-day. 



Index was 0.07 firmer at 

2.1Sm. shares. 


Canada below best 

A fresh initial gain on Canadian in 

u__— _ nnccihio • — g-" - r va. vu 01 uuv xcu hj to semag a rrar me results, woue 

take-over target, topped the Big t+L !j? d — d t« fl On and ^ ffUStSlDC^i S ^ Of , . 0 . . 

Rn•4r^ 'trtiviries , b h rose 21 to [os ' by ^Id-session. The Royal Dutch, down FL0.80, and while among * mainly steady results, retreated 12 cents to 

r°* rd r Toronto Composite Index, up Unilever, Fl.0.70 easier. Financials, Oerifton Buehrle SHKI-88. HufcMson Whampoa 

nearly two points at the start, was Banking shares were led higher Bearer, after the recent gain, came shed 2.5 cents to SHK4.40 ahead 
just a net U.l harder at 1,082.0 by ABN. up Fls2.00. Transports back 15 to SwFY&2465. of its figures, 

at noon. Banks, however, retained were mixed, with KNSM and KLM In Industrials. Nestle receded 

S4U. Hopper and TYco Labora- 
tories both purchased stock in the 




Ohan^ at IG0.47. 
Closing on 

a gain of 1.46 at 25627. while higher but 
Utilities registered a rise of 026 Ontmeren lower. 

N«UJoyd and Van re more pSS 

Giegy were 40 cheaper at 

taking in Blue Chips in the 
absence of fresh market stimulus. 

pnee day 


.1)47. IDO 


+ 1 

Inter. Tel. ft Tel. 




.1. Bay McDermott 



+ 1 

1 ircirienfal Perrlm. 




Marshall Field 


— ) 


Kenrmcoii CoppL-r 



— } 

Continental oil 




Did. Tnehnoloules 



+ i 

WcdliigholM'> Eire. 



+ 5 

Royal Dnieh 





State loans were slightly easier Sw.Frs.L145. 

■‘imperial Oil “A” were up l at in quiet trading. Domestic Bonds slightly higher. ^ 

S20- 1 — Imperials Esso Minerals GERMANY— Fairly lively early while Foreign Bonds were quietly declined 15 01 ™more ro 5449 82 

Canada said that it has found trading petered out through a steady. _ VoluStTasoi (Sitokl 

uranium, nickel and silver in lack of Mlow-up orders and stock JlItLAN— Stocks were mixed Electricals, reversing the pre- 

Saskatchewan. prices finished softer for choice with a lower bias, after slow vious day’s improvement, had 

PARIS— After Monday's reaction on balance. trading. Sony Y60 down at Y1.74Q. TKD 

on profit taking, market displayed Interest centred on Volkswagen. Sola Vfeeqsa. Montedison. Electronics also Y60 off at Y2.040, 
a firmer tendency yesterday, un- tvhich lost DM3.50, probably due Montefibre and Bastogi gained and Pioneer Y50 weaker at Y1.660 

derpinned by the latest employers’ to continuing disappointment over ground on -short-covering after AUSTRALIA— Industrials were 

again irregular, while Minings 

fi.X.&E. ALL COXHOb 



A l*r. 

A t .r. 





A I*. 



suite Luiupitet u 

Apr. j 
10 | 

( Apr. 

1 l 1 



1 6 


1 A P f - 

} 1918 

| H4f«* | 

j Li«w 

W-Ssj 50.41; 

1 50.13 


! 51.82 

I (3/1) 



Rises and fails 
Apr. 1CU Apr. 7 

Uiyli ‘ I»iw [ High [ Lou- 

Afir. 6 

Inufis tout ad 


1341 1 




' 868 ■ 




523 | 




446 / 


New Bleb* — 




New Loire 


11 1 


Iiidu-u ml ...' 772.65 769.68. 766.99 785-08' 755.37 751.04 8 7.74 I 742.12 




69.66' 69.66[ 89.4* 68.601 89.49 80.46 

Trann.irl....' 208.80; 208.0!' 206.86, 20B.27 1 206.49! 206.40: 215-77 

■ | ' j • laili 

l/tililies 106.92* 106.96' I05.5SI 106.511 105X4 104.74 110.98 

; ! i ! i i (5/ii 

Treilins vnl.. 111. 1 

OUti*-; ' 26.740 26.160: 27.660' 27.260) 20.160 20.230 — 







1851.7flj 41.22 
llblfta)] <2/7(32) 




22(2) j (20/4/69) 

















Combine 1 











■d O) 


162.90 (15® 

. 17042 (30/1) 

TORONTO Com^o»iU' 





108)4 (10/4) 

888.2 <o0/l> 

rObAlf NEB6U&G 







199.i{ 1994 

218.7 U® 
314.4 (4/); 

1954 (21,01 
154.9 (Id® 

* k index t-hatiMCil fr<im \uriisi 24. 

’ Apr. 7 

liar, dl 

Mar. 24 < lear ago (approx.) 

: 6.06 


6.16 | 



i A ff-! A r! 

Apr. 1 Apr. ; 

6 i h 1 

A pr. ; 


Sim* LoiiipiluL'n 


Hiijh ; Low 

! Ul|s4i j Luw 

; ImliiM rials,' 99.54- S9.17 
(i.'nuipiuitc ; S0.43| 30.17; 

98.72[ 8S4S| 
39.73 89.64 



! 97 . 20 J 

I 38.4s| 

105.22 9642 

id/li (5/3) 
9542 88.90 

idili 1 16 ® 

| 144.84 { 5.63 
<1 1/1)73> (3016)38) 
I25.S5 4.40 

'(11)1175)! (1.6/321 

| Apr. b 

; liar. 29 | 

Mar. £2 j Year s)p) (approx.) 

l ud. div. .vielil % 

J 5-39 

' 5-46 j 

1 ' 

5.46 j 


Iml. P/6 Uatiu 

! 8.48 

| 8.48 

1 8.48 . 


»mc Colt. DuikI yield 


j 8.25 1 

8.16 1 










Australia^). 459.64 r 469.73 ■ 479.43 | 441.19 
(6/1) \ (1/3) 

Belgium th* 98.66 

96J1, 96.32 ' 


(11/4. I (12.1) 
tW.13 ! 94.0U 
• (9/1/) j (6i2) 
63.7 1 I 47.6 
! <7/41 I (3/2) 
BOLfi | 812.7 ! D»-E 
(10(S) r (4,1) 
77.8 62.1 ' KX3 
■ 1 10/2) I 1 4,4) 
446.63 446.80 . 461.67 ' 383.44 
(W l i (4/4) i (13/b 

(is), 60.98; &JJ36 ; 63 Ai J So.4a 

1 I I (6/3) ; fto/l) 

W Kf!S£> 1 408.79 j 410-42 ! 364-04 

4 i (5/4) i (4/ll 

Singapore ! 294.67 : 206.77 1 296.77 . 282 j 00 

France <«)• 64.0 ' 

Germany 801 . 1 1 
I ; 

Holland <<#)' 78.5 * 

l April 




: hi 




Spain . ooj BL76 


[Viih l 


Sweden t*i! 37032 






Swiezsrl'dDj 2914 










(10 4) I O/ll 

indices and base dates (afl base values 
100 ezeepi ffYSE All Camnion — 30 
Standards and Poors — 10 and Toronto 
(4M. the last named based on u/ta- 
t Endudlns bunds, i 400 Industrials, 
i 400 lnds., 40 U tllliles, 40 Finance and 
20 Transport. (J) Sydney All Ord. 
Oil Belgian SE 31S13/S3. (~l Copenhagen 
SE 1/1/T3. (tt) Paris Bourse 196L 
i *.t) Commerzbank Dec., 1332. f Si > Amster- 
dam. Industrial 1910. <1T) Hang Sens 

Bank 31/T/at. t till Italian 2/3/73. uii Tokyo 
New SE 4/1,08. >5) Straits Times 1966. 
(ci Closed. Cdl Madrid SE M/ 12/77. 
■ cl Stockbolm Industrial 1/1/58. (J) Swiss 
Bank Com. («> Gnarailable. 


Jnv. $ Prem. at $2.60 to £— 102>% 11022%! 

Effective rate (1-8780) 4B}% (46|%) 



Atinl I 
1U ' 

April, Ijilt 

Aeiiui Lite A Caw. 
Air P*i»ilu.-I*i 


55 i*i 
49 Jb 

AlcaiuVIuiuinlunij 251} 


Allatbenv L>h(I.., 
Alle^bouv Po<seil 
Allied Chemu»l.. I 

4 HU Cbainiera...! 


Amerada U«a»....! 
Aiuer. Aii , iine.....l 
Aiuei. UraUils ... I 
Amer. Un^iloisl. 1 

Ai'ier. fail. 

Arne/. A'tmiamiili 
Auier. Kiei.-. Hsw.) 
Amer. Ksprew ... - 
.liner. HnrriePinil 
Amer. Meiiiin- ...• 
Amer. JlrKwi ..... 
Amer. AaL lia*.. 
Amer. ■■Sutmtefil..' 

Amei. Sioms. \ 

Amer. Tel. A Lei.; 

A3IF • 

.UI P 


Aiuib'x UiiekuiK- 
AnbHtser ik«vfi n ' 
Arroiv steel....... 


Ammern Oil_ 



All. Kn-Lihehl 

Au(n Unlit 

A VC 1 


brof (Jt» Aie>-i....- 

UAnkers L'r ,\.l .1 



U/tui i.f Piahl 


Bell A H-iweii : 

Uemfix ■; 

Uenguel Lahih ■/),■ 
Bethlehem nievl .' 
Black A Decker... r 

ftanog 1 

IXhsu ; 


Bi.r« Warner 

Bnuitrr (ut | 

Unsi»u 'A' i 

Briklw liven. i 

Bril. Pd. ADIl...; 
Hnvkway (., ism.... 

Uninsn ici, I tine. 

Bu.LJ ; 

Uiiiuvh Wrk-Ii 
B uriiugtnii K 1 tin! 

burnai^lis 1 

■.'anuAieii bou]^..J 
Cfliuuilan Paciliir.i 
Lanai Kamlmpli..! 

L HnlRtU'll I 

Carrier AGonem 
I .trier H«wii\\... 
Lnierun-ai- Tm-tr 




587 8 

20s h 

26 ig 

9S4 ; 
46ia I 

40 lg 
23 <g 
3358 , 
284a I 
421: ' 
37 U 
32 Jb , 
611% | 
305g ' 
16<a . 

26 la i 
124) . 
265a ' 
204e : 


20- t '4 I 
ll'i I 
20 < 
28 : 



22i z 
46i: . 
254 . 
225 4 ' 
35 U ' 
28is ' 
36» 4 . 
23 ‘s , 
37 ig 
184s . 
27 B 

207g ■ 
16 1 
34 t q , 
27i a 
1140 . 
14 1 8 
30 >: | 
14 i s ; 
28is • 

1444 I 

I8i a i 
334, I 


















387 S 




28 4 










26 if) 
ZO Ig 

20 7 3 


19 <3 

46 i a 

37J a 


347 a 
26 In 
27i e 


6 >a 


I i-antw C-N-/ 'K...I 
Cuiilm. A 5. W.„| 

term Lillee 1 • 

Ce—iw Ain-ran..i 
Ciia.-«.vun(uuiui • 
Ciiemii-Ri Bk.W | 
Liie-et'ivli IVam .; 
Cbewie Si‘»tem..i 
L'liL-aijn flintge...! 
ClirniUHUnv.. ...... I 


L ineranut .1 

I'm--. SI ilx'-n >ri j 

Cliieutv. I 

t m*. oervk-e....: 

Vliv li(vv*Hnfiii.| 

(.'■.'•ai V/jir ,. lr .| 

LhjIuI Palm 1 

C/'llil- Aikumu..| 

L'nlmnbln this ' 

L'jjiuintiln ..J 
Gum. In A ml 
GlJDltniMWlO K1I3J 
Lumbuauuu Ki|...j 
G'ni'tt 'th kkuwnij 27la 
'-■oin*»’Ui Uii lie. **• - 
linairt. .-nLeilKc-.l 

• unitmlerS ii'iiis I 

G.innL. Life Ins. ..I 

Guam- | 

Lon. (iligiiu X.Y 1 

L'nnmi Kiwis 

Ctmvu -\st. Gas 
i.jiiisumer hntn 
Gunttneni*i Grp, 
i on t mental Oil.. 

Conirol Data.„,, 







15* 1 






















31v B 


39 .'a 1 
23la ; 
3013 ! 
50 1 

19 1 a 
1153 ; 

21 st ; 

204 ! 

46 4 
137 2 ! 
39l 0 ! 

114 ! 

157 0 . 
1?S8 1 




22i 8 




21 S 


20 Ig 
1 l'a 

Ljjfl 1 Aivl 1 


CI’C Int’n’ilom 1 

L’larle ,J 

Cns kui-.Vai | 

orciwu&Mei ll*. -Ill 
L'uiiiimn kuHiiui 
Curt-WriirtiL [ 


Dan liniiiBtnea. 


Dei Buate. 

De'lune ........... 

DeatM)My Intel.. 
Detroit till son.. 
Diamond TjbsmrV 

Dicta ylxme 

Ducile fcj, iiiji. 

Diaiu-v (Vi’s '().., 

Dover Curpn 

(*•« Clteinfun'..., 



Uii I’nnl 

D\ mi.luilu-.lrn~ 

biusie Piwlicr 

hut An nne-<...... 

bestniRii Korlak. 

6. O.A 

b Hrw, Net. ( in* 


fcmeiwiii b'io> UV 
biuerv AirKr'iRiii 

hi iilian _.J 


6oee>hen(_. ....... 


Rtiivi. ........ 


Kain-btbi Oiruerx 

I'd. UeW-3CHt> 

KiresUaie Tne... 
re. Am. Ihelijii. 

K.exi Vru .... 


Klurhlit 1‘nWf-r... 
r'luor _.| 

K.ll.C 1 

font ll.ii iir 

KunMihei Mck... 

r rank, in XI till 

Kree;wi Alineni 

r roctmul J 

Faqua lads.-. 



'ien. Amer. Im... 


Den. Value- 

Deo. Uyiiamli=>...| 
Gen. biemwi.— | 
Geuenn roods... 
Uenem Mine™ 

General U.^orc... 

■ ren. puh. litlf...J 
Gen. ^tRrai—„r. 
i.eui Tei. Wevi.. 

Ueu. tyre 


Ue>.Tj{1a Pai-iRc.. 
ti-UV OI»-.. — .. 

DUieiie L 

GiasBu li K.F 

■««iye«r rirv—.. 


(mi-e W.K 

Ut. Aiinii LVusTeel 
url.Anrvli I nin ...l 

O ivy fii it nui l 

Gull A U'8Mli!rH...I 

Gull Dl 1 

Hadlortoll. | 

lltiiuta Jlllllf )....; 

Haml»4lte}lPr — I 
tUrns LrjrpU._„-! 

Heliu bU j 


HuuneiL I’f-ksn-l 

H'liumy Inna ! 

Himieviake.. — ..,.j 

H-mci tvRii 

H> I 

H«tt) 1 forp Atner^ 
Hoosiou XU- Us 
Uuiton <K-K-)_... 
I.Ci Industrie*— 

lugmol Knuil.... 

lotanil Steel 


I nierojni tinerfiA' 



26 4 

32 «, 





2 l * 






337 # ! 
40 I 
23 ! S I 

1044, , 

W* , 
74 : 

35 ' 


15 *8 , 

297* ; 

334 I 
38?b . 
314 | 
2I 8 | 

■ 27X* , 

46ig | 
30* | 
35* 1 

H* i 

26&s : 
22* . 
295b 1 

82 ■ 

33 > 

26 ■ 
94 4 

11* 1 

3a ; 

9*4 j 
147 3 

277 3 !‘ 

27 4 I 

195) 1 
23 ij 

26 7 S 
. 201* 

12v a 





46 J, 

2 is , 





Inti. Flavour*-... 

10 u 


(nil. Harvester- 



lull. Min A Cbm 



lull. Mull linnda. 

23 1 8 





39 ' 

23* '■ 


int Untiiier— 

30* ! 


ink Tot ft Tel... 




i5Ee : 


Iowa Heel . — 

86>: 1 


1U laTernadbaal 

442a i 

44 - 

dim Walter. — 

65 Ig 1 

i 6k < : 

451, 1 
12*) 1 
294 j 
B4S, 1 


121 - 



52i a 



75, I 
2411, ! 

214 I 
274 ; 

20* I 


?!‘ s 
29 i B I 
1 > 
32 ig l 
1^* j 

45 /g 

27 lg 














37 lg 
105 lg 






15i e 
29 u 









I 137* 
267 a 
, 2li, 

! 215, 


> 32* 









. 46 1 b 
87 r B 
297 e 
24 i s 

26 lg 



n 8, « 

• 23 

&37 B 


334 ‘ 
447 b 

22 4 








. lO 'B 

11 * 
29* , 





JuUn- Mm vi lie... 1 
Jottu-vn Jolm-uui 
JiJin-on LiHiiru-. 1 
4 ut UsnuMctnrir! 
n.Uirt O-rjc — I 
•vniaei lifcluHine-] 

Km» j 

benne-oli j 

rverr Mdit*. 

nimie Waiter 1 

Kimbeny L:u«rU_l 


siuger Ci*.._ 


Ubtn Oiv.Ponil... 

Lia-eti Gnnip._.| 

Lilly (Hm 

Lniuu I nilii-v 1 

Dmebur Iml 
Gin- t — 1 ah,| Lut. 
IjMaintau- Unrl... 


Lucky Slut*. 

L*ke- Vuitjpii'irn 


Mnc.v K. U 4 

Mir Hanover.... 
VUpcu... — . — | 

U*mb>Hi Uii„„. 

Miiluc Ukliaml. 
U<uvtMi. field. „| 

U»v Depu-toreri 

MCA ; 

McDennoU 1 

McDonueii Dihii-i 

UcGravr dm .... 

Memo rex i 

Uurck - ' 

Mernh Lvucti 
Me*« P«rii*rHini. 

UU XI '. 


•Vlotti- C-nrp. 1 

AiixuaiHo. I 

MonotuJ. p 1 

Uutorun-... I 

UuivhvOiI M ..| 

.\ai,i-cu -.1 

Nsien Chesu nail— 

A silo tun Ua I 


. 67 
29i C 
17 # 
22 * 




29* : 

41* : 
17 I 
185a ; 
18* : 
19* j 
214 1 
381* | 
6* | 
IX* I 
33* i 
485, I 
22* I 

>'«_ Di-tlliero....! 
Xok. service ludJ 
-Sal Irma. Sled 

NIK. - 

Nejapue )sn|< 1 

Men box «ilu 19. 
Men Uoftbuiil T h! 
Muupu* Jtnbawtj 

N. C. lnduatnei. 

A oriolKJ. Western 

Nunb Xai.Ua* 

Ml bn Stale?- Pnr 
Mill west Airlinesj 
Nibwes* UaiL_-or| 
Nurtou otincri 
u . Meat* Petrol 
U-ilvy Mslber... 

Ohio Eiliaon J 

Dim. - 1 

Q*< m— abip. I 

Dncnv Corning 1 

U»»» lllimds ) 


ftiu.l'wr.A U-..! 
huiA m VToiiJ An I 
Parker ttaaiilliu. 
Palwiy lnU„„.., 

1'eti *. 

Penny J.U.- I 


Peoples lima | 

PeuiihttCiJK. ....—, 
1'epvlcu. j 

23 I 
274 I 
33* ! 
354 • 
44* . 

62 : 


44* I 

34 ! 
474 I 
28* ! 
15* . 

224 . 
15* 1 
31* 1 

344 ; 


18* - 
aii, ; 
34* ; 
147a : 
«* ; 
27 ! 
374 I 
2434 ; 
24* 1 

22* i 

194 I 
217« I 

46 ! 
184 I 
14 t 





Z47 B 



22 * 






22 * 











21 * 




117 8 







227 8 



27i a 










437 8 



















22 * 
22 7 S 
4&3 4 






Kb* km - 

Ucynoids UefaR; 

Reynolds R. J | 

RirilV.n Merrell.r 
RuckneU Inter..! 
Robna A Haaa...... 

40 - 


UpyalDuU-li ..1 58* I 

UTB ;..4 " 


Ryder Bysteui... 

Sale way Store*.. 

8t. Joe Minerals. 1 
St. Keel* Paper- . 

Santa Felnds^... 

Saul Invest - 

Saxon lnds_ 

Schlit* Brewiuji.j 1 13, 
Sell l uai better. | 665* 

St^l ;.... I64 

Scott. l*a)«i-- 12 Ig 

Scm'il Ur); j 2i* 

S.-uilr' Dnut VgatJ 7 
































Sea Container* : 

Seagianj „.! 

Searlefti-D.l ! 



Shell Uii ... 

shell Transport ..J 


signodo Cvrp 

simplicity Phi.... I 


stoliltKUne I 

Solitrou — , 

Suutlulowu I 
oocrthrrrt Cal. K»l- 

254 I 
234 i 

235* j 
32* j 
31 | 
38 t 9 I 
337, I 
343* i 

Southern l'n, - 16 7 a 









£2i b 







Perkin Elmer j. 

fa — 1 

Pfitei _..! 

Ptas|B Uu1»e_... 
(’fiibutcrfiiiui K«i-.| 

Phhlp Xl.jrriv 

Philip-. Poim-'ni- 

Piisbiuy. i 

Pltnov Uwes..-.' 

PittHi4l n ,„ j 

fteu*y Ltd ADKl 

t Wn-i_.. I _ l , l 
Potomac bit?:.... 
PPU ImluStriBa.. 
Po* tcrQaoible.J 
Pul- -?crve LlOi). 

Pull man 


Quaker U«ta 

lhp(<i Amerii-nn. 


He pub bo siceLr. 

. i : 

17* 1 
36 I 
27* 1 
22 * , 
is* ; 
61 ! 
£93* ; 
35 i 
21* | 
21* I 

18* j 

27* I 
81 , 
84 I 

377 8 












217 8 






17t 8 
18 68 
207 a 













SrbtL. Mat. Res.. 
Southern Pacific.] 
Sou tliemEail way- 

■Son til land ■ 

S’u-’t Uau-lMrea. 
S)i«tv Buicla.... I 

Sjwrrr Rami | 


Stauilsnl Brands. 
a-bi.OU Indiana.. 

SUL Uii Uhln 

Scaurr Chemical. 
SlerluiK Dn*,...; 
Stinietaber. — ./ 

Sun CoS 


S.vmex — ...... — , 


Tektronix .a 


Telex! ; 

Tenew. I 

Tesnno Pet tvleumi 

Texaco. j 



Texai, Oil A Gas.. 
Texas DrUities ... 

Time tnc. ; 

Tlmca Mlro.'r 




Tmnaco ] 

Trans Union 

Tran -war luir'n' 
Trails World AirJ 

465* I 

24 1 

385a i 
23 I 
60 e>b I 
37 /a : 




V 1 * 

95* ! 
363* ] 

30* I 



*ram> « otki .iu-j io 

Travel l e in | 31* I 

Tri Coni mental ..- 184, | 

36* ' 
271, ! 
22* ; 
aar B 


T.ILW | 

akh Century Kov 

L'.A.L. .J 


c.a.i | 

c.o.p | 


L'oilever AA’, ] 

L'nbn Sausirp... 
Lnkiu CarliWe.... 
I'uluti L'uimJiems 
L'nion Oil Calif ..j 
L’utuu -Pacific.....! 

Lalroyal ‘ 

Lulled Brawls... i 

US Budc-xv, j 

L'a Gypsum. I 

(,’S Sue....- 

US Steel 

L’. Tcufaunkiijlc*.. 
L’V’ lndir*triiri„.. 
Virginia Elect.... 

WiSgreeu j 

Warner- Cum mn.! 
Warner- Lsml eri J 
Was to Mau'nient! 
Wesleru Baucvrp; 
H’oiflTi X. Amnj 
Western L'dIoo...! 
Wearing}) se Elect! 

Weslaco j 

Woy ertaiaiBW i 

Whirlpool ! 

White Cun. ind-..; 
Wtncoflaln Eietg.j 

750 ; 

5*1 ; 

29* 1 
23 j 
257 S ! 
25* - 
37 ] 

l9Sa | 
137, ; 
19 >8 
365a ! 
21* ! 
26* i 
35* ; 
22 { 
18 Sb 1 


22 ig 



16t 8 






















377 S 









25 ia 




457 8 

















































Wen worth 


U. t«[K— 

Aenltfc Kudin ; »/j 1 is 

(LSLTrcsst-a l-v> . f94* \9* 

0S.Tres^ j7S,7:- r t01Sa »81 
U4.90 Day bills., 6.33* * 6. 

18* | 184 
4* I 3* 
43* • 43 
16* | 16 

147 b 1 15* 



6.33S - 6.33% 

displayed an easier tendency. 

BHP shed. 2 cents more to 
$Afi > 10, but Costain Australia 
improved 5 cents to SA1.35. 

In the Mining sector. Central 
Norseman lost 20 cents to $A7J10, 
while EZ Industries JA2.05, and 
Bougainville Copper, SA1.05, 
ned 5 cents apiece. Peko- 
send shed 4 cents to SA5.04, 
Renison Tin rose another 6 

Among Oils, Central Pacific 
Jvanced 70 cents to $A4.50 and 
DUtheni Pacific added 6 cents at 

NOTES 7 Overseas prices shown below 
P T>.)nrt^ 5 premium, rod pisn divtdeads 
are alter withboldlnfi tax. 

O DM50 denom. unless otherwise stated. 
V PtasjOfl deoom. unless otherwise stated. 
4 KrJoo denom. unless other-vrise stated. 
$ FTs^OO doQom. and Bearer shares 
unless otherwise stated. HYeo 50 deoom. 
unless otherwise stated. 5 Price at time 
of suspension, a Florins, b Schillings, 
c Cents, d Dividend after pending ngbts 
antt'or scrip Issue, e Per share, j Francs. 
0 Cross, div. *n. h *«*mnpr< dividend after 
scrip and/or rights Issnn. k After local 
taxes, m % tax free, it PTaocs: Including 
Umlac div. v Nom- q Share split, a DIt. 
and yield ex chide special payment. I Indi- 
cated div. t* Unofficial trading, v Minority 
holders only. » Merger pending. * Asked, 
t Bid. I Traded, t Seller, s Assumed, 
xr Ex rights, xd Ex driideod. Xc Ex 
scrip issue. xaEx afl. a Interim since 



-JSteriaig gained ground against cent from 3.38 per cent domestic- taftufomcef 
mogt major enrrentaes in y ester- aJhr anA a 13 gent against' 358 cioae- — - 
day^forrign eacha^e mai fcet In per' -cenL in Sntenatkmsl .tealr 
response to toe UJC Budget ings.- . ' nxg 

which was generally well ' " ' 

received. The one per cent In- 
crease in MLR to 7J per cent 
seemed to prompt toe rise and 
during the afternoon toe pound - 
touched a high point of $LS8HQ- . 

15820 against toe U A doHar. : 

Conditions before toe Budget 
remained very qtrfet and sterling ' 
opened at S1B755-L87B5 and, 
attoough closing off toe top at - 
$L8<75-1.S7SS, a rise of 15 points, ■ 
eariy deagings in New York 'saw : 
too rate once again above SL8800. 

The pound's trade weighted- index 

using Bank of England figures 

opened unchanged at 62.2 before - 
easing to 62J at ntoon. However, 
sterling’s late improvement bol- 
stered its index to 82.3- at the- - 
close. ' ' ■ ..VyV 

The U^. dollar traded quietly 
ahead of President Carter^. state- . 
ment and finished the day on a- - - -- -~ 
sUghtly firmer note. Against- the CURRENCY RATES 
West German mark it dosed : at 
DM2.0130 Dram DM2.0077} having 
been down to DM2.0O3S In toe 
early part of toe m&rx ring, while' 
toe Swiss franc finished . at 
Sw£r.L8582i from SwJnrJSSSO. - 
Morgan Guaranty* caJDalatfoii 
of toe dollar’s trade weighted Cuudtan..^. 
average depreciation, using noon Aiaan* De- 
rates, moved slightiy to 627 - 

cent, from 628 per cent on Mon- 
day. Using Bank of ISngjanfl Dutch guilder 
figures, toe dollar’s index - -ini- Vwnch b»nc. 
proved to 8S.5 from S8.4. : Gc^d itnitan »r»^.. 
traded quietly finitoing ?l an 
ounce better at *I79HS0k Tfco JSta^aSta! 
krugerrand's premium over its flw®dtehk*m® 
gold content narrowed to 3.40 p®- 8wta* [nac 

Aftemhi flx'g 

[tf98*-ee*> Sov'gnc458h7 

April li - . j : April - w 

Icttn CD l.afft. “ 

(£85.721) _ : 




(£29 *-30 *) 


weao4^i4> ^304^14) 

Kff-W qb i 


“ S5S87 - ‘ |S0486 
gg®j4-304> (£285,-295*) 

W-W *. UB61&15Q54 

62884-aaa 4:52884.2914 

FOREIGN exchanges 



April ID 
















_ or 

April la; 










1077^3 : 






.: ****** 


, A pril U 


_~.CkM . . 

New 7ntk„ 
Itaban — 


- g 





9 - 
5. . 



C. 1420-2.7520 
74940-148 J6{ 










Onto • — 




A terms 


8- - 




. 40+418 







iff'- •- 


| April XI 








444030 I -BA 12-422 
' ,14.492-638 
6.B8-S7 1 — 

aAbWaij 6B4M5 

40.756867 164916-8298 



46.66 70 



t Rates given are' for convertible franca 
Flnaneiw franc Ca^38.0i. 

other markets - 

‘I | Notes Rata 

iusearinaJ TOg-OTB -^Ais®rtWft2»-T5Sl 

AnrtnUta JT.6H»M34fir ’ 

Bnudl — I} 5m-«2.2J 


/ran 160-124 

Kawait-.J a3Tl-0321 
Xananb'^ MJ64A35 

TJS. S in. Toronto U3. f =1142024 ri-^iAian CQDte . 
Canadian S in Ktnr Yoric=S73«6 cents. VS. $ in 2!U*n 86029-100 
Sterling In Milan 1696^1696^0. “Rate* lor April ID 


Saadi Anbl BAX-633 iNcftheri'od 

8- Alrica-Jl.6177--134# , orhg(ai.- 

Swita'fauid S.4WLSS 

K.-S. LB7-UB* 

PJ23736 {Yngoaljta^j - 

Rate given ft ir * g free rue 

April 11 


4 tomrtun 

Dollar " 

IML Dollar 





tSbon. tarm „ 
/iiaya notice 

Three months. 

Aix month*. — 
One year 

6*-6T a 






'• 7-7* 

. 7S*-8 
7T B -8l0 






6 10-6* 

W. Dermna ' 
- mart; • 





Ole memth . 



Montreal j 
A mss'daml 

.95 opm^lS O.di»jlL20-0.10 ua 

0.05-0.15 e. d^0.17-0. STtuitk 

1 c. pm-par 
15-5 c. pm 

318-9* c. pm 

(35-fiSc. pm 
132-753 on dk 

Euro- French deposit rates: twodaV 8Hi per cent.: seven-day 8J-» per cenL; Cup’nhgn. 
one-month H-9» per cent^ tbree-mhailt O-K Per cent.; sta-noonfri 8t»i per cent: Frankfurt 1 
noe-year 10-iej per cenu Uatxw.,^. 60-^0 c.dw 

LoniMecm Eurodollar deposfa: two years 8*-Si per cent.: three Jfiars Si-81 P«r 
Cent.: frnir years 8WJ per cent-: ®»b years W-81 per cent. j* .*• — . oS^T-flOoriS. 

17) c. following nmntfiKi rates wen quoted for London dollar certificates of doposR: Soi*.- [l-2 a. dis 

one-nmab 7.05-7.15 per ceztt.: throe-motdh 7 J0-7 JO per cent.; six-tnantfa 7JB-M0 per Ei’ckbolmjlifi-** ore dls 
cent.: one-year TJ5-7J0 per c ent-_ 

•Races are Dominal calllns ,'HUafc 

Short-term rates are call for Btaritoc, UjS. dollars and Canadian doflara, two . Sx-moofh ftmnird. doUar OASSAac you 
days' notice for guilders and Swiss frahex. . -li-momb Wfra.iOc pm. •_ 

Vienna jBgro [Mn-SgrodW 
Zurich _lais-l* o. pm . 1 

"Three month* 

120200a. dlB 
17-23 tire dia 
161-181 ore dU 
2* -3* c.dn 
4*-6* ore dli 


64-0*0. pin 

April 11 



|+ oi 


A '*ru Veo-icb.. 

nM IV. 



Bayer Hvpu , 

Bayer Vwelnrtjfc[ 

(hnunentanli | 


Dainner Beov 

Ueu aim ... • 


89 -0.3 
495 |+1 
2x1.5— 4 
142.3- — 0.6 
289 1+0.3 
319.7, + 1.2 


1 + 0.6 
1 — 0.1 









Ahitftw t^»ycr I 12* 

Agnfcoltafcic.....:! 4.85 


A rww 3i«? ' IB* 

Aabekto,.... 1 137* 

Bbusoi Mcmirve 19* 
UankNiivu ui>im 19* 
da*K' Kwun.-e-. 6* 
Ben lete)ilHine... 54* 
Bow V*ii*r (ml . 27* 

pH Uiwta.. 

etna -o_ 

v.-* -en tViwei .. 

v.bidOo lime 

C-wuiia Ceitiefii . 
vsneita MV Lair 
uen lmplm*Dc.iii. 
■Janwla In.iuii ...' 

Cmi. Pa 

Oau. Pu in. In* , 
wan. Super lb .. ! 
Csnioii O'Keeie . t 
vnuwiar Asiwuhr.) 


Coin i ir<i 1 

Couii Baihuici 

wonaiimei Un.... 
Ccweka Nwourm • • 
■Mill IfM+l 

Deon Devlmt 

m^clllMill 41111-... . 

Dome Slmei 

Dome IVtn.iienn» 
Dominion llrntai 

Doinlw ! 

Dnpuui..... ■ 

Ha cwn'ce A ii-kfri 1 

(vni Xli'4oi Can..) 









20** I 
27 ! 

25** | 
17 ■ 





68* j 
24* 1 
16* ) 
12* ; 
19* I 
734 I 






Uiani l'ei.trkniie 

Uuii Un Canada.. 

Hawker aid. Can. 

Uui-iimor I 131* 

Umiie.Ul, -.v* ! 

tludKm Bay Mm 

Uinleun Bay 

Hudson Un a. ((*■ 


(mpeitai Un ,| 


ml and 


kaiaer Kta>‘>un.v&. 
LMurm'i KinOir,. 

LubMtv Lcoi. 'L.' 

Mu'miii'u .. 

Mdbaey Kenpiwoi 

lioero Ccupn J 

■Nunujiia Mine, I 

Noteeu 8uerg\„ • 

-Nibn. le-tu'm 

AumacUl- i '.h.I 

Uihnw.1 Pihj-'iu . 
PactlieCupi^i H.] 

- I 

land A m. (nt. j 

a'jir'y PlpeL’iitj 

< V. -ill. ■ f*Ln iiei i n i 
Pan. Can P*i‘n>. 

fowpier l>pt. a.. 

Ptni-e Cn x Of ,. 

Placer Devm^unt 
fowerCurji inn *i, 

r< i c 

Quebec Sur.wn 

Rainier Ui> 

Ueail Stiaw ■ 

Wm A>)>ii«i J 

KoymiUk. oi can. 
Kuv». I Him j 

3 ,-epil 8 ]{ ' r -et I 


jUen Cauaiia.. ul . 
^hemil U, Miut^-I 
&ebm U. U | 

smitiwnr ! 

■Steei oi CiuiBiln..| 

3Berf' lh».-k loin.' 

lexjioi Caiimui...’ 

lVnrxiUi Duui. Uh 4 

LraimCun l*ipeLn 

1'taUo Mnnni t)i > 

inra ...| 

linion l> a, ......... 

Uki^ilwae Miner 

Walker Hi nun 

West Coe, i Tru» . 
Weston lien 












: 8 




‘ 28* 

OS 6 


10* I 
7* I 
33* I 

16* l 









36t B 












267 B 







267 B 










































Deubebe Bank.... I 309.5 —0.5 
Dnsdner Bank. ...I 2&3J>ai| 
Dyekertioft genii . * “ - 

Guiehu(Tiiuiu> — i 

H»pm i/t n><_ 



Hoerch... ....... 

iuUI udO Salt ...4 



iv WCkner Dm 1004 




lawem.ireu 10U--4 

UnUmu-a .... 


Metal Ute- 

MiiDchener Kuek.l 

Xeckermann .. 

rmuau; DM 100.. 

RheinW’we .hleet j 



Stfcl difdcer 

lln*«i A-C..„.. 

y ana ... 

• bUA 

k'ereini.lM’»(f < k 



19851 1 

296 -2 
133 i+0.2 
45-2, + 0.2 
127 '-0.8 

137.5- 0.6 
309.5h— 15 

210 I 


178.5- 1 
97.3 +0.3 

244 — 1 ‘ 
1.940 +5 
111 (+2 \ 
193 i + 3 ; 

170.B ; 

208 |—3 
312 —3 | 
116 1-0.51 
114.5; +0.5 
188 1 + 0.3) 
B4t*.5 — 0.2 | 
281 !-2.7 

245 Ul 
ina j-0. 3 
178 1—2 
106^ - 1.7 
306 f— 2 ! 
206 J— 35i 





2 u 























! 3.2 

i 4 - 3 


; 3.5 












18 I 1.8 








April 11 



+ or 

>» l * 

« I * 

a do hi ( 


Vipeni Unk/P .Wi 

\S1I£V tKi.IU) 

A nimi «n k iKIJO) 

injnil.iiri.~ i 

.Hike Wm'iiiih.lLI 
uu rtu m I'etienale: 
dliievlcr (Pl.d.ri.... 

Bnma X V.M c jm ei 1 

Kuro Com I'stFl. 


Heineken (Fi JJd>, 

Hfmcneas (PlJXTI 

Hunter D.tFi.lOOh 

aX-U. (Ki.iOU)...l 
lut Muiierilnfl.-.J 
Seetuen f*-i. I0> , 

.Nau\e<i las.( 


103.2 t0.2Js21 3.4 

330.O| + 2A> .VMS 6.7 
B2.0,+0.e As44l 0.4 
74.6m, +U.1 Zii b.u 

BO.fij + 1.5 i 25 


o7.Bi +U^I 
283.01 + 2 J 

. 97.9 

ned MULBk(Pi^/)| 185.0x4+2.8 

+ 1.5 
25.9, + u.l 
23.01 + 0.3 
3S .^+ 13 

Doe (PT^J) 

Van Ommenen_. 

Pskliveu (Fi.'jji... 


KjnSrtiVen PcUA 



Runeuio rt'i^O).... 
itamDuleb/P J3. 


v.m«ever (Kcil),... 


Weattan'du. Bam. 


10 , 




16 , 


, 30 
117.71—0.7 }42.S 

152.6- 0.4 

131 '—1 
23.6 -0.1 
lt0.5 — 0.1 


131.5! +0.1 
248.41 + 1.5 

137.6- 0.4 

109.0' +0.8 

425.0 +0.1 

25 , 












13.89 7.9 












April 11 



+ ur i/iv. (YTT. 
— 4 

Audeisiiuikeij I 146 +* | 

•lunn'Hr W. a.+. 440 |+7 l 

Ltaiuke Bank I 127*1 • 

ttut Amali GU...I 211* 

I'luuustBiikcii | 150 

Vur. By»neriei ...| 340 

r'ur. Pa/ nr ■ 81 

tiaiiDelrtMnk 129i"di^i a 

l-.Vili iiH./Kr+ii, 262 ; + 2 

AwlKshei 269*.+ u 

OIWhtWL.,. M r 70 t-B 

Pnv,runiii^.....,.ll33i' W+ i* 

I'rovmstMUli i 140) 

soph. BereiMijen.l 377*1 
*i«rio» | 184 



; + 2 




















April n 




. *i90 







Dai MpDon Prim 


Fuji Pbotxx.. 








Uuuro Food 







I_4J* — 


Kanrol Hied. Pw. 


— 20 


887 1 



n" 1 - Hj 1 . t|BL 




— 1 

Ultaublahi Beaty 


+ 1 

Mltanbtshl Dorp.. 



Mitsui X (Jo——.. 





—6 • 

.Nippon Denso — 


+ 10 




Nissan Atntr<n> 





— bO 

sanyu bJe>+ric — 


— 1 

oeuifui I’rerah 





»4jy J 







rUK. 2.040 


L'eijm - 



lotto Alarinp..— 


lokio bled. Povr'rl 



lew vo Sanyo — 1 




149 — 2 




lnr<da Untnr. j 

900 | 




a 3 

























20 I 0.9 
40 | 1.1 











Source Nikko Securities. Tofcyo 


Apm 11 






+ 12 
+ 25 
+ 40 

Arbe»i |B,hOS —28 

uii. Brx. lamb (1,500 +2 

dekerl “B" ! 1.760 U-50 

C.UJt (.'+n«> 

•^ockeri' f 366 

Buta 2.o75 

K>ectrol>ei ... ..‘6,420 

r'a bnq un Xki f2 .425 

i.b. 1 1 inn- Bin..... 2.120 

lievaert -.11.380 

Hdaiken 2.405 

Imenmin 1.970 

KmJieUttuk J6.550 + 60 

La ICovaio U+*e.J5.700 +60 

Pan Hnuiiac S.40U 

Petrufiitt ,4.170 +15 

Sue Gem Bamju8.J2.950 +15 

sac Beu Se<(;lq cel 1.930x3 

aofliiB 3.500 +15 

wniuy — 8.500 +5 

IVsction Kltta__J2.673 +5 

UUb .1 978 +86 

Do Wlu. fl.lO).._j 750 +12 

v(e(/««'lldntaffae , 2.03O +50 




15 >142 





f Apr. 11, 


t/'l5# AZot-Xtrim I odu* 91 
Am peri Exploration 

Ampol Petroieom— — . — 

taoc. Mineral a 

Aaaoc. Pulp Paper SI— 
A-«du.Uod. Influscrie*. — 

&a*t. Founriifioninrwt— 



Au*t. On ft Oka. 

dine blocaj Ind— 
daug/LmrUJe Gtoppor— ...— ■ 
Broken Hill Propnet a ry — 
BH Sooth. 

Can goo United Brewery — i 



Cental nar(Sl). — —.1 

CuoxlocfliotlDto J 

C na tai n Aiw tiaUa 

Dunlop KnbberCSll— f 


Anrt.* - 





Eider Smith 

EJL Industrie*— — 

Uon. Proper t y Tniat— 

Uameniey.— — 

Hooker. — - 

I.C.I. AutlmJla J 

I ntar- Cupper-— — ' 

-ieonUiK* lnrtiutriea..— -J 
Leonard OIL. 


Mitt Hoi „ 

My«r kmportnm, 

ftewa.^— - 

A l •( )o*a International 

Aixtfa Broken HMIoga flft 

Dakbrtiige— — 

Du .ifluofa. 


Dtter Hxpfoiadoo.. 
Plommr Obcrrete— 
doukitt ft Ootman- 
H. a Sleigh. 

xKjtbleza^ 3nwlnx~__— 

Siwrgoa Exploration 

umuj <»!». 




















April 11 








nuu ‘.V 










lAv IT. Orte— 




2 b 

Do. ltaj{. — 










1,600 1 

+ 10 



F)-ch« t Georges 



3 7 

Hutinian PH.W4. 





Du.— .. 










■ — 80 



N«*le (Fr. ICO)... 





a. 340 




Oeriikuu O.\?2oj 





Plrelu SIP (r. 100) 


— 5 








+ 10 














3» Uenk (P.IOC 












durirh Im— .... 





April 11 


tfiiiL ; Asked. J Traded. | 
Bft'evr stoct 

A (Til 11 



+ Or 



AMU. ..... 


+ 1 



+ 4 


— 1 



Da. Pn* 
























UllvctU PHt 


— 1 







99 L6 

W attntUi— -j 

Western Ulning fOCk+mm)^ 

lVonf worth* 






April IT. 

1 Irate -*j 

AtriqueDc+) , i 

Air liqnM 1 

Aqa! taloe~ 


CXT.AJcatai._iI.135 I+IB’ 1 
Ole sancane. 

Club aiodltar. 

Credit Com KY <1 

Ctepwx La'tw_ — i 

rV.PotroJoa— — 

(Jen. Oodrtentmt. 

Jaoqoo Bom..., 



Price 1 -t-nri DtTJYhl 
Fra. I — j Fra. | « 


Ufiaone Pbenc*. 


Aloet UraaeaBy-.' 
M oulinex 


Pemai-]6carri — , 



(tad io Tech Blqoe 


Ubo&e toweifc— 1 
rt. Debate. 

■ski* Bciwoctnoi —| 

Iteemoaotauc — 

ibom-ort Bm&Hj 

U »nor— 


187 ; 

1875' +0.5 , 
-83.15 — OJ>5| 
0683 +1^ 
194 +4.1 
446 +1. 
690 -3 
147 ,+0:i 


273 1 + 3 

800 |+5 
194.5,+ 2.5 

4*< 0.6 

21.15: 5.3 

2 3 



73 J Hi 

5-rbi 4.0 


18271 2.6 

51261 L9 
3921 33 
5225| 2.3 

ia a.7 
3 1.6 
7.51 23 
15 4,1 

2S.6! -6.7 
24^ 4.1 
9 !l2^ 
59 2.1 
, 2W 9.4 
ZU5\ 2.7 
75.15, 83 


Ajnl 11 



AliA AO (hi Jlfl-; 
,V«EA (Jutaifi— , 
Atlas Copeo(Kri^f 





iHwt'lux •B'lKd 

Bricftaa ‘H'lKrtd 

Fa g e rita 

limnaai (tim — 
ILtrabou — , 



+ 0f 



ilta L.-. 

92 .!--4 

IWJ i 

238 +1 
141 Ul 1 

iaa \ 




‘e 4 £fdl • 

63 ','-05 





A 4 




... ,65 




Apr. 11. 


Itad r« 
Mgo HinoioiOl 
U(jaa Amor. OP J 
Petrotmu PP— j 

iwxat'oiz OP.— 

UnipPK L. 

Yale Kio Dore PI 

Tffi m. 



r l.17 



8 . 68 . 




+ or ID tv. 

MLQ3AU 324 
‘JlSa.17 LSI 
. . ..IflJB 16-81 . 



— O.T90.1Q 
L— JL23 5.61 
+0.1M^0 286 
+0495.13 03 







VoL Cr.j35.ln). Shores 65.7m. 

■ • Source; Bio do Janeiro SB. 

05-0 : 




2 , 

MS — 

aeqtm Bank — ... 

■xaregaani-— . 

00.6;— 0.5 






Jraditbaak — i 



-'DO* HyitrotcrJ*. 

107.60 J. 


lu6 ! ...: 












TOD ,r 



April 14 ■ 

Aaoto American Corpn.. ... 






KlOOt ... 

SuKtenbore: Wrtmm — . 


. .LJO 

' +0JO 


■ 4.65 ■ 
5.40 - 




^Y't *1 1 


. 330 

40 33 

1 7T I ■ ” r'.rrm* mm 



MTestbtn Deep - — ... 




>*. - 



AECL - — : S.16 +D.65 

AoRlo-Araer, Indnsrrtsi _. M45xd 

Barlow jund X45 +9.03 

CXA Investments — tl.SO 

Carrie Fmanct 0.B5 

De Boers Industrial 165 

Edgars CamaHctaod. In*. ti.K 

Eds are Stores - *2040 

Ever Ready SA 1.E0 

Federate voOohclesslnta. isj 

Grealermans stores 1j» 

Cnazdian Assurance (SA) 1.75 

Hntotts 14S 

VTA 1.63 

McCarthy Rotjway 


.Li. -i 

* W) 

OR Bazaars — 

Premier Milting 

Pretoria Cement 

Protea HoUinss 

Rand Mines Properties ... 

Rembrandt Group 

Ztatco - — C— 

Sage B0UI199 

sappi • 

C. C. Kmlih Sugar 

Some .. — — fcta 

SA Breweries — 141 

User Oats and Vat. HDDs- 940 
TJnisec — 049 xd 

Securities Baiid 

(Discount of 32 £%) 


Amfl 11 . S 


Eanea BUbao . 

Banco Ailanlico (1,000) 

Banco Cenmu ... 

Banco - Exterior 

Banco General 

Banco Grenada <LW) 

Banoo fliwuip. 

Banco Ind. Cat. (LMB) 
B. mo. MeCfltcrranco— 

Baoca Popalar — 
Bapcn Santander <2S0) 
Banco Vinnik) ILMOX. 

Banco Ytccaya 

Banco; Ziracozanu —• 
Bantomton — 

Bands Xnfflaoa 

Babobcfc -Wflcmt 

Pnl^lmt- ■‘-if nnn a i wMiil 


Enfi. Bio Bata - 

Fees* (14691 uk».m» 

Fenosa •(•UW 

GaL Preriadea 

Gmw VtiazftH <■») 

HMFQlg - — 

iberduro . ^ L-— — 



tr cent. 


-1 - 


+ 0 




4 S 




4 2 


. — 


4 6 


■ — 

nr • 



+ * 


4 * 






+ 3 

. 135 

■ — 


-tt ■ 



'•■It • 

— i 


‘4 * 

xz ; 

+ 1 • 

52 - 

+ 1 ' 

.M2 ' 




+ ft1S 

v ‘jj 

Tuiilmil 1 Ml 

Tpmri HOgancb 

Wilxmiir ^^ra 

tLsrasa JO**] 

■'tz ^-‘S 


Financ ia l Times. Wednesday April-. 12 JL978 

Decline ; 
in metal 

*y'Oiir Commodities Editor 

THE STRONGER tone of sterling 
aud-tbeTise ra-tbe UJK. minimum 
lending rate encouraged an easier 
' in. the. London ■ Metal 
Excnange markets' yesterday. 

«n .led .the' way down. Tie 

cash price fell £117.5 to .£5,037.5 a 
tonne, if rose £250 on Monday. 

- The t f e wa s- surprise at the open- 
ing that the overnight gain in 

market was limited 
^o«M27-tO SML568 a picuL - 
. Pr oat-taklng safes- were also 
encouraged by reports that cod- 
Bumers would firmly oppose pro: 
ddeer demand for a rise in the 
Agreement « floor" and 
range, and that the 
u^. had proposed postponing a 
decision until after the stockpile 
release programme for surplus 
Ain. sales bad been finalised I 
Copper opened lower following 
the overnight trend in New York. 
iThe: market steadied on trade 
baying and. then eased on the 
stronger tone in. sterling. 

Lead, was held up by some 
good buying demand, but zinc 
met renewed selling pressure. 

• ' .It was reported from Washing- 
ton that the U.S„ Justice Depart- 
ment’s anti-trust division said 
there is no' justification for 
restrictions- oh zinc imports .to 
tiie.U.S. • 

• ' The International Trade Com- 
mission was urged to reject 
proposals by domestic zinc pro- 
ducers for higher tartriffs when 
imports - reach specified levels. 
Such measures would seriously 
limit- domestic and international 
competition .-in slab zinc, and 
products made from zinc, the 
■department said. . 

- It wIH presumably take a 
similar line when the Interr 
'national Trade 'Commission con- 
siders pleas for restraints on U.S. 
copper, imports next month. 

meat workers 
start strike 

BRISBANE, April- 11. * 
Industry Employees Union has 
called ra fdtu^day Australia-wide 
strike from midnight to-morrow 
to midnight on Sunday, in 
protest .at .the; arrest in Western 
Australia "yesterday of union 
members : picketing - to prevent 
the loading of live sheep on to 
vessels for export to the Middle 
East *. ■ 

.The -strike is expected to close 
all Australian meatworics. 
-‘‘Workers . have beep picketing 
. in . a campaign _ to reinforce 
demands for limits on live sheep 
exports to protect . employment 
in their industry. 

Reuter , - 


Chinese wheat purchase 
raises U.S. hopes 


bought -large. quantities of 
American wheat were. partly con- 
firmed yesterday -when the U.S. 
Department of Agriculture said 

unidentified ;ILS. merchants sold 
600,000 tonnes of wheat "to China : 
for delivery in - the .marketing < 
year beginning on June 1. 

The confirmed total falls well 
short of the 6m. tonnes which 
some traders have ' suggested 
China has bought from the UJS. 
Nevertheless the: Chinese pur- ' 
chases are regarded, as highly 
significant as China has not ' 
turned to the US- for .wheat- sup- 
plies since 1074. 

Obstacles in the way of U.S./ 1 
Chinese wheat trade include the 1 
fact that the Chinese- rejected at 1 
least one cargo of US. wheat in 
1974 because it was contaminated 
with “ shut " disease and the 
U.S.’s refusal .to recognise the ] 
Peking Government. * .-. : 

Agriculture Department offi- i 
dais played down the political l 
significance of yesterday's 
announcement; however. - They < 
said the deal owed more to | 
economic than p'odtieal con- i 
^derations. “ We were thfir last i 
xesort." one official said. The i 
combination of a bad domestic 1 
harvest and short supplies else- i 
where is believed to have forced 

China to buy US. wheat 

China normally buys wheat 
from Australia and Canada, but 
the US. is lie only exporter 
with substantial supplies avail- 
able tints season. 

Further Chinese purchases 
from the US. seem possible. 
Canadian officials have estimated 
that the Chinese might need to 
buy 7m--I0m. tonnes in the com- 
ing marketing season. 

One U.S. grain -industry expert 
noted yesterday that China, after 
withdrawing from the market 
earlier. this year, bad recently 
sold an estimated lm. tonnes of 
rice For export. “With the high 
prices for rice. China could be 
seeking to generate foreign 
exchange to finance wheat pur- 


The quality-conscious Chinese 
have not bought any U.S. wheat 
since 1974 when they refused to 
accept at least one cargo con- 
taminated with “smut.” 

V.S. exporters said yesterday 
China bad at least modified and 
possibly eliminated the contract 
clause which said wheat could be 
rejected oc arrival because of 
this disease and that the grain 
had to be certified ** free of 

Instead, China has apparently 

Tapioca surplus 
hits Values 

OVER-PRODUCTION and slack Thalerng suggested that a 
demand in European markets long-term solution to the prob- 
have hit wholesale prices of lems caused by over-production 
tapioca products here Thai out- lay in using tapioca as a feeding- 
put this year is expected to reach stuff domestically. He also said 
a record 11 . 1 m. tonnes, bat local that the area planted with the 
prices are at their : iqwest level crop would have to be limited 
for four years, reports Renter, although land improvement 
Tapioca pellets now fetching would be undertaken to ensure 
JU.S.52 a tonne locally, were sell- higher yields, 
ing for $87 last JuneL = Last year, Thai tapioca exports 

Traders put most of the blame increased to 3iim.. tonnes valued 
for the slump on over-production, at S386m. from 3.7m. tonnes 
although a good’ EEC grain crop valued at $376m- the previous 
was also depressing demand for year. 

imported stock, feed. Tapioca was the country’s 

Thalerng ”• T%amrong~--Naya- second most important foreign 
sayasdi. -Under-Secretary for exchange earner last year, after 
Agriculture, said tapioca cultiva- rice exports worth $7L7m. A 
tion should be continued despite report from the Thai Tapioca 
the price decline. - ■ Trade Association shows the 
He noted that the. European area planted to tapioca during 
Community, the main market for the 1077-78 season has been 
Thai tapioca products,- was 'gpw increased to 2m. acres from 
importing more from Africjtyind U3m. during the previous 
less from .Thailand-". „ , rv . n . season. 

agreed that the exporter should 
pay for fumigation at the 
Chinese port if any problems 
develop over smut 

A U.S. commission bouse 
analyst said: ** The real sig- 
nificance is tbe opening of the 
door, and the potential that lies 
behind that official move. China 
usually buys small amuoots at 
a time.” 

An exporter said tbe wheat 
sale to China — which bas tbe 
reputation for being among the 
world's toughest negotiators — 
reportedly was accomplished 
“with not all that much diffi- 
culty. That would tend to indi- 
cate that they really need the 

Chicago trade sources said, 
meanwhile thev believed China 
bad bought 15.000 tonnes of any 
oriein soyabean oil for .the 
April to mid -May shipment, 
renorts Reuter. 

It appears likely the oil wili 
be of U.S. origin and will be, 
shipped from the U.S. gulf., 
though The freight, reportedly. 1 
has not yet been booked. 

Late last month il was reported , 
that a vessel had been chartered 
to load 14.700 tonnes of =ovahean 
nil in mid-April at the U.S. Gulf 
for shipment to China. 

The two sales of soyabean nil 
reportedly have been handled by 
two different export firms, the 
sources said. 

World sugar 
prices up 

WORLD SUGAR prices advanced 
firmly on the London terminal 
market yesterday. The London 
daily price foT raw sugar was 
raised £2 to £102 a tonne. On 
the futures market the August 
position gained nearly £3 to close 
at £110.45 a tonne. 

The market opened firm 
following an overnight rise in 
New York. That was sustained in 
later trading by some trade buy- 
ing interest. 

New York’s higher trend 
recentlv is attributed to expecta- 
tions that the introduction of 
stronger import controls will 
encourage U.S. refiners to 
replenish their stocks by stepping 
up purchases. 

Meanwhile sugar statistician 
F. o. Licht yesterday trimmed 
his second estimate of European 
sugar beet plantings this year 
to 7.83m. hectares. This com- 
pares with bis first estimate of 
7.91m. hectares, but Is above last 
year’s figure of 7.80m. hectares. 
The forecast was in line with 
I market expectations. 

keep coffee 
export ban 

By Richard Mooney 

nri Ids” coffee producers meet- 
ing in San Jose, Costa Rica, 
have decided to continue their 
ban cm exports in a sustained 
attempt to reverse the recent 
downward trend in prices. 

.This announcement came as 
a surprise to coffee traders in 
consumer countries. They ex- 
pected the producers to scale 
down their price support 
-policy. On the London market 
the July Futures price ended 
the day £62.3 higher at £1,397 
a tonne. 

The original decision to sus- 
pend sales was taken on March 
10 In San Salvador. The signa- 
tories then said the suspension 
would remain in force until 
prices reached “ reasonable 

Sr. Ricardo Fall Caceres, 
director of Compania Salva- 
dorean del Cafe, said yester- 
day: “Present prices do not 
reflect the supply and demand 
situation." He is president of 
the commiitee which will 
decide when ** reasonable price 
levels” are reached. 

Sharp rise 
in cocoa 

By Our Commodities Staff 
COCOA PRICES moved up 
sharply ou the London futures 
market yesterday, shrugging off 
an overnight fall in New York 
which was expected to bring a 
f20 fall in London. By the close 
July delivery cocoa was quoted 
£92fi higher on the day at £2,00S 
a tonne. 

This week's rise has been in 
defiance of u generally bearish 
trend- in fundamental news with 
the U.S. and Holland both 
announcing sharp fails in con- 
sumption. The Dutch figures, 
announced yesterday, took March 
grindings to 11,830 against 12,380 
In the same month last year, 
down 4.4 per cent. — more sharply 
than in January and February. 

Additional bearish news has 
come from Brazil. where 
improved weather has helped 
prospects for a large temporao 

But tbe fundamental situation 
appears to have been largely 
ignored in the market in view of 
evidence of coming tightness in 
short term physical availability. 

Political unrest in Ghana has 
led to shipment delays which 
threaten to create problems for 
some European traders. The sit- 
uation has been aggravated by 
reports that an Ivory Coast 
shipper is in difficulty because 
of the poor quality of the crop 
there. - 


Ecological disaster 
threatens Amazon 


BUSH INVASION, fungus and 
soil leaching — these are tbe sad 
results of eight years’ activity on 
some of tbe first, huge- cattle 
ranches that have been set up 
in the Amazon region of Brazil. 

One of these farms has been 
up for sale, in vain, for more 
than a year and a big question 
mark hangs over the future of 
the other 200 enormous ranches 
that are being formed at the 
moment. Does ecological disaster 
await them too?' 

The desolate landscape on 
these older ranches, with their 
parched, brittle soil and stunted, 
scorched growth, makes a pitiful 
contrast with the exuberant, 
green vegetation in the un- 
touched parts of tbe tropical 

The Brazilian Government’s 
earlier dream of effortlessly 
transforming the Amazon jungle 
Into vast, lusb pasturelands to 
supply the world market with 
large quantities of high-quality 
beef now looks like cloud-cuckoo 
land, as ecologists at the time 




COPPER— Em k-r on the LanBon Mrtri Kcrb waa 

.Exchange with forward metal moving tDT meg ~ • 

down Initially from £718 10 £712 00 profit- . . *jn- 

taking following the fall on'Comex over- - TIN Official 
night. Thtre waa some trade haring and - 

the market .steadied at £71W714 before fiVh Grade £ 
mUrwcLrus to' £717 to anticipation Of tie ■ ChSu—.J 3900-5 
Gomex opening. But this wa* Unyft; ttouT 3- months. 59B09C 
expected and with sterling stravttentoc-s^nteni’t. S9SS 
)*can«\ of the Budget, tbe price dipped - sbuMUffd , - 


oh the Kerb waa &M5. TdJnover 1.205 Three month* £319*. 28. ^ 20.5. Aftorannn. 

p-m. tt+wt 

Unofficial | — ZINC — Slightly easier on balance. For- 

1 - T - ward metal lost ground initially from 

,,, OU-CUii to 012 hot Influential buying 
117 canaa a lift: to £3145 before tbe unco 
5960-65—107 shaded on proSt-taklng and under the 

— influence of the stronger hound ro dose 

| op the Kerb at £313.5. Turnover 4.958 

a ill trt mvuusi " —w. — — . — ■ — 

Three months £319. is. IS. ISA IS- Kerb: 
Three months 1319. 

sum ujoama a«.atu^i fljru uiauV ** | ‘ ~ _ U14-U1D Til Uli UUl 

atlnmdne to' £717 to aadclpetfon Of the CWi— J 5080-5 f-22.Br 593S-40(— 117 a lift lo £SW-5 

Comex opening. But this waa loiyflc. Uuul i monthB. 59B0 9Q- +30 l 6960-65— 1B7 shaded on proSMaKlns 

expected and with sterling sujewttentoc.s^j^jm't. 9985-/ +20 — influence of the stronge 

because of the Budget, the price slipped Standard , • oo the Kertt at £313.5, 

to dose on the Kerb at £7155. Turnover 997640 +17.51 5935-40—117 tonnes. 

18,950 ton nes. . . . : 'A months ■ 5980-5 +17.5! 5950-60-119 r 

rnpPRRi a-m. H-prl. iwn. It+U Swttexn’t. 5630 +115 | — I ZINC OOlcm 1 v — 

COPP&Bj j Unofflefo , | — Streft- B- &166Q +97 i “ I : _• — 

ri0.00-2ns.5fl; June 1S8.75-187.00, +S.B0. 
187.Od-183.OD; AO*. 172.50- 1T5J0. +5.97. 
nn traded: Oct. 159.0D-180.00, +5.87. un- 
traded: Dec. l4B.01M-tf.0a. +-B.12. un- 

rraded; Feb. ltfJKHtf.00. +0.TS. nn- 
traded: April l3S.OO-14SiM. -+7.W; 

nntraded. Sales: 28 till kits of 17JI5D 
Wlos. • 


coppbk| 0 a - J « ik 0 1-°mSp ^lc ^ .:t: r 

7 : • Sew X Sm'.* - 610-582-15 £ j £ 

rj, , -£■ ■ -£ £ X - Morning:. Standard, cash £5.980. 75. • ' + ‘l 5: 

fi97 « " 7 e 6M.™ q 75 three months £5-885. 90. 85, 80. Hlgl Sm imttou. 315.-* .+ .5 , 314-5 

r** h "5,V IixTr QS Grade..' cash £5.975. Kerb: Standard, bhnam...^ 309X - — ! ~ | 

ISi’iwUt r ~7 ft 71S - 5 ^ ‘ 9 ’ 5 ihree months £8.980, Aftoraoon; Prm.Weirtl - 1 29 

saiM — vn _.. t- , . —— standard, casta I5.9M. 38. three months - cpfiu, p^- oound t On oravtona 
Cathodes- \ saon 5 _r" fSJW- 55. 50. Kerb: Standard, three onnffipul dose *8M oer picnl 

1^75 : months XW»0. B5. ». 55. 

U.S_SmU_._- I . 64 Three ntonths I3IA5. 15. 14^, 15. Kerb: 

Amalgamated Metal Trading reported throughout the dim tram ^ Three months £310. lfc 13. 

that hnhe morning cash wlrebare traded anecnlative sourccii. After nmvtos betw«n 
at JES9& three wombs J71S. JSJ. -14. 3X8, £835 and ypn 

14.5. 14, 133. Cathodes, carfiOTSA. . traded op to OM.6. Asltehi Oylowm- tei ru 3lL,T HIV 

Kerb: WIrebars. three moottw HBJJ4 J? gJW 25 |SlW Silver w a s ftwd l.lp an ounce higher 

HA 15, Afwrnoon: Wlrebare. three ckwe on the Kerb of Ois.-a. xnnwver » fivers In the London bullion 
months £715. 15J. 16. KA IT. Ifc »A 6,350 tonne a. SSriWt jmkSw w Kl Jp/ U.S cent 

S. 3D9-.5 j+-25: 

sh Jpu'ntlwu.l 315.-6 .+ .5 , 

«L s’meni 309.5 j — ; 

n; Prm.Weatl — ■ ■ 

+ .25: 308-9 1-1.5 
+ .5 , 314-5 1-1.25 

• EASIER opening on the London 
physical market. Fair Interest at lower 
levels, dosing steady. Lewis and Peat 
report that the Malaysia codown price 
was 205 cents a kflo (buyer. May*. 

TOWmra £ 1 £ £ ' £ UbrntaUT . Standard. HI 

OaS!.-!^ S97-5 L-7J 689-700 '9.73 SS 

^ aw. > 

gffis" r • ' ■ '"T standard, casta £^9«0. 38 

&*■.. — 6B8-.5 .l-74«9a.*lA- S&'sn! SS. 

3 months- 703^-4 1-7J -706-7 -7.76 »^ B0 ' «*■ ”■ 

SettJ'ni'nt 636.5 •— VJ — - LEAD— Uttie changed w 

U.S_SurtU , — J ; 64 h»M moderately, steady 

No. 1 YenJenlay'*! Pienou- 
B.S.**. close |. -1«e 





Ci:+- Ue 
Jan- .lfr. 
A [i- -lot 
!»•!- Me j 
48. 10-48- IS 

47.00-48 J30{ 
52.40-52 JO,' 
55.95-54 J15: 

55.45- 55.551 

58.45- 6-. 50! 

52.45-52.1 0 

Kerb: Wbeinra, three months £715.5, 15. 

TIN — Lent srwBd despite a firm start £, I £ tf ; £ 

for torwxttl metal at WHO foVovhas foe s T4.2W '+ J25 313-4- —2. 

rtoetafoe Eart.wenrtsht Bw ' SiT. fiB .6 ■ l+j 5 19- 5 -r.75 

toting took tbs price-down to £5,870. and , . 5J4 B . + j . _ , . — 

aUhoagh there waa a temttorary advance “ _ 55 ■ 

to IS MO the decline condinted In foe “-BirPifL?— 

rflf-flh ^rbtof £319.25. Tnnwver Silver was fixed l.lp an mmee Wsher 
fSnM for spot delivers In the London bullion 

j50_tonnEB- market yesterday at 2Sl.2p. U.S. cent 

a.m. + «■ _ P- 1 *?- ^ eqnlvalenu of the extog levels were: 

LBAD OffleJ*' — Unotlieial! — • TOI si7.5r. no v.Sc: '•*~e-mnn'*' W Re. 

— — — — ; 1— — bp 2.6c: six-momh 5465c, up 2.4c: and 

£. ' £ i ~ II -month fliotc. up 2.4c. The metal 

nfo 5I4.2W '+J2S, 313-4 —2. Dpc(wd aE ase. 5-281 Jp <527-52830 and 

.V. MO. R 819-.6 If .75 goaed at 288j-MTJp t52tl-3g«l. 

Sales: 356 iS5j lore of 15 tonnes. 
Physical closing prices i buyers i were: 
Spot 47p isamei; May tfp (tf^5>; June 
49.5P l s*me>. 




iroy m. 

Bullion j+ or. L.U.R. 
fixing i — I ctose 
prictcut ‘ 

I.C. Index Luaited 01-331 34 6B- August Jsugar 

29 Lamout Roftd, London, SW10 OHS. 

1. Tax-free trading on commodity futures . , nr 

2. The commodity futures market for the smaller investor 

August Sugar 109.&-I1L2 ^ jasi.ap +ui 28 i.*p ! +i.o 

i months^ | Z86. 1 p '+1-1 j BBfi.Ap \+ 1.0 
hin>4 - - mouthy . 292.3 u +1-1 \ — i — 

... inroclnr - Zmiintlw. ,, +1.1 , — 1 

market opened unchanged but with dug- 
Bi4h uhvsIcBl trading values spent both 
se-tshms on foe defensive. By foe close 
losses of GO points in wheat ahd 50 points 
in barin' were rofusrereO la thin volume. 
New exon moved lower In sympathy nn 
a lade of iotereitf and dosed 15-35 points 
lower. Acll reports. 

. LME— 1 Turnover 133 il24j lots Of 19.000 
ounces. ' Morning: Three months 286.5, 
6.6, 6.7. T. 7.1. 7—. Kerbs: Three months 
3875, 7A. 7j. Afternoon: Three months 
288J, 87, 7.1. 87. 75. 75. 75, 87. S6A 
6J. Kerbs: Three months 264.3, 6.4. 


Vcftentort* +nr TeetenJav'- 
,-lnse — J kiw 

■ ur 






I— O.20 1 


— 0.1B 



1 — O.20| 





— O.20J 





i— 0.20: 


— 0JS5 


1 Royal Exchange Ava, London EC3V BLU. TeL; ® ^ 
Index Guide, as at Uth April. 1978 (Base 100 at J4X*«-> 

Clive Fixed Interest Capital 

Clive Fixed interest Incoma uti.go _ 

• CORAL INDEX : Close 482-467 


f Property . Growiii .. - 

t Vanbrugh Guaranteed 

t Address shown under fnsnrtow and . Prw»rty BOOd Tabic- 


me strength at foe near tnouUis pro- 
duced a sharp rally in prices in the 
absence of first hand sell tax, reports GUI 
mid Dufftts. 

' I ttsienarV + hr i itaSSS* - 

COCOA J Ck« | — j Done 

NOubCnti'i! i 

May iQ 32-5-34 J +.t34Jf 20fSJM8H» 

Jnly— '23OT.O- D9 .0 J+Bl.S 2UMJ1-T910 

Son*.™ 1945-0-50.0 +62.5, IS54.iJ.1b72 

Doc - 1877. -81.0 ' +47:0 ltBI.O-lOJ 

Uareii 1320. 0-29.0 + 57.0 1816 JM 790 

sin: )7K.0-SBJ1 '-+4S.0 J78BJMBJ 

July 1 755.0-8 vO +57Jil7Sa.O 

~Sal£K 4^»"LSCfto«r of to tan nes.' 

tntaraaianat Cocoa Organisation iU.S. 
cents par ptBUJd+— Pally price Apr n Jfl: 
138.69 (158JJ.J. Indicator prices April U: 
15-day average 139.41 ( 139-02 1; 22-day 
average 137.33 


futures service 

Whether your, interest lies in one or in a dozen 
of the commodities traded on the London 
futures market the C.C.S.T. information, ^ 
advisory and brokerage service can be tailored 
to vour needs'. Up-to-the-minute prices and 
background news are constantly relayed to our 
cUents and trading advice aven when required. 
For those not wishing to make trading 

decisions themselves we operate a • 

comprehensive managed account service. 
vk.ii t\f nnr ranee of services can oe 

- London opened steadier as expected, 
keeping to line with New York, reports 
prstd vtnrnhaivi Lam here. Overnight 
enthusiasm continued through tbe day 
with . Central American producer state* 
«wn . »i«<rrihip continued .withdrawal 
front the physical maiiwi a noted factor 
in. the rise. Strong -suppbrt Iran 
commission booses was also evident as 

Chart . technical Indications turned 
h nnnm pricesh at the close were af the 
h^bs. ■ . 

'’YestentnyV . 

COETKB t:iM +”\' l tZr 
£|«r tonne 1 

Business done: Wheal— May 92.00-91.41). 
Sept. 84^84.70. -Nov. 57.5S-B7.43. Jan. 
89.90-S9.7S. March 92.4042.40. Sales: 74 
Jots. Barf or — May 80M-80M, Sept, ra.45- 
79.25. Nov. £2.15412.90. Jan. 84.S534J5. 
March nIL Sales; 91 lots. 

IMPORTED— Wheat: CWRS 'No. L 13| 
per cent.. April- May £85^5. UJL Dark 
Northern Spring No. 2. 14 per cent.. April- 
May £88.25, May £85-50. June-July £85.00 
transhipment East Coast. U-S. Hard 
Winter 131 per cent unnoted. Australian 
wheat unouoUd. EEC wheat unquoied. 
Argentine wheat unquoted. Soviet wheat 


Mateo: U.S ./French April, May 
£1(0.75. June £100.40. S. African Yellow 
May fni.30 quoted. 

Barley; Unquoted. 

H GCA— Ex -farm spot prices on April 11. 
Peed wbaai: Humberside fSB.TB. Glances- 
jpr EJS.m Feed barley: Hnmber.side 
£77.30. Glmteester £79.10. 

The U.K. monetary coefficient for the 
week from April 17 la expected to be 

to mills of acconnt a wane. In order 
current levy plus May. June and July 
premiums, with p re vinos . In hra^Ma: 
Common wheat— 84.31, nil, nO, 0.45 18537, 
0.16, 0 18, 0.32). Durum wheat— it* «T. 
0.64. 0.64. 1-29 (129.35. 0^4, 0.64. O.M). 
Rye— S0.73. nil. tfiL nil (79 58. D.841. 
Barley— re^B. nIL nfl. nil (77.96, nU, nil, 
nQi. Out*— 77.74, niL-nU. nil (same). 
Maize (other than hybrid lor seeding)— 
68.14. IS. L38. 2£o (89.88. nO. nil. 1.66). 
Buckwheat— All nil. Millet— 77.40. nO. 
nil. mi (7KJ0L nil, nil, nil). Crain airflbtin) 
—(7.48, nil. nU. nil isatoe'i. 

Far Sours: Wheat or mixed wheat and 
rye— 129J95 mull. Rye fioot-124-34 

May, i 1 4S5-1 4 97 

Joly ' 1486-1888 

September.-! 1525-1828 
Koranber.> 1285-1290 
Januarv.—i 1269 - 1 SS 5 

Hatch f IZffll T£50 

Miy ' 120 +- 1250 

+ 87.0 IBM- 1445 SOYABEAN MEAL 

.+87.0. IBM-144B 
+ EZ.3 Ic97-li46 
.+ 574); 1228-1284 
+554). I2SO-1S56 
+ 45.0 1220 

:+s).o 1220 

01-480 6841 or'wntrag to: 

CC.S.T. Commodities Ltd 

, Waisingbam House, 35 Seething Lane, 

fSl- London EC3N4AH.; : 

Sales: 336 n,73S) lots of 5 tonnes. 

ICO. Indicator price* for April 10 (U.S. 
cents per pound): Colombian Mild Arabt- 
cas 192-00 (iss.80); umrasbed Arabtcas 
170.06 isamci; other mlU Arabicas 176JS 
078^8); Robnstos 147J8 (10.30 >. DODj 
ftverue 1B1S2 18154). 

ARAA1CA5— Futures followed world 
stntdfoees; dosing at tbe Ugbs In ouiet 
conditions, reports Drexel Ru m (mm 
Lambert. ■ 

Prices On order buyer, seller, chance, 
btabnss)— April 2BU»512J3, +LSS. 

jY«Mentaj- + >ir . bu,iue» 

. j Clo«e ! — | Done 

i £uert oune; I 

April ! 180.00-55.0 +BJ1B 18140-51-30 

J line — ;lKfi. 70-27.0 + Z.B01S7.9. -24.70 

Aueust i l!6^i-26.5 + 2 JO: 107.00- 95.0n 

October ^...1)2 1. 03-21.2 +0-95 }■ 2. 50-50 -M 
'December ...11 16JM-17.S +1,00 117^0-17.00 

February -118 JHJ-19 JB +0.60! 1 IB^O 

April iliyjBHMJ +0. 75 : - 

Sales: 144 tS 4 > lots of lOO tonnes. 

PALM OIL, Laudou— Clnabvr. April 

Hfl.OC. May 300.00-330.90. June. July 
and Attg. 300.93530.00. SeDL, Oct 299.00- 
330. DO. Nov. 2S0J0-315.M. Dec. 280.D0- 
310.00. Sales: 2. 


LONDON DAILY PRICE for raw snear 
£102.00 i lOO.OOi n tonne cir for April-May 
ahipmenl. White war dally Price was 
fixed at ilMJO (£103.00 ». 

bmsw ■ r 

Fret. |TMFienuy'a< Piwlow Buauieaa 

O-mm. i flow flow IXtne 
‘ L.iiin. J 

‘ 1) per wniie 

£lav.’ fc . KB.flM5.70 i4i.8fl-fc2.Sfi I05.76J12.7B 
Auk- .. llu.4 1 -.60 1u7.B0-u7.7B 110.50-u7.60 
U-u. -.1115.40 (5.45 110.B6-11.10 1 18.60- 1 1.50 

lie 1 1 1 6.55 1B.70 1 14.10- 14^5 1 1B.B6-14 M 

Star I, .1122 15-12.86 (-20. 7ttl2B.00-20.75 
Slav. ... H3.25-2B.B0 12#.00-24.1 51S6.D0 
Aua 11StS.b6-28.75 I27.25-27.6S 126.00-2B.50 

Sales: 2 »3S"ri.M4' lots"of 60 tonnes. 
Tale and Lrte ex-refinery price for 
granulated basis white sugar was £343.40 
i same i a too tor home trade aud £102.00 
irtBD.OOi for export. 

internal., on at Sugar Agreement: Indica- 
tor prices ■ U.S. cvnu per pound fob and 
stowed Caribbean porn for April 10: 
Dally 7.62 *7.61); 15-day average 7.58 
(7.57 •- 

EEC IMPORT LEVIES— Effective to+lay 
for denatured and noo-dena lured sucar. 
In Uoiu of Account per too kilos, with 
previous m brackets: White— 27.70 isajne); 
Raw— 21.77 iM.OIX 


LONDON— Doll and featureless, reports 
bache Halsey Stuart- 

(Pence per kilo) 

Aijstmfuiii (I'estad’ya-f. urt Uns>iie» 
Gnoav Wm,(l Clnse I — Lh.iiv 

u«v. B 20 J- 25.0 1 - 1.5 223.0 

July j l - 

ll -Wer.... B52JI-a.O ......I — 

Uc:emtK-r...JI34.IM7.0 ......i ~. 

Mnr-ti 255.0-41.0 — 

May 239.M2.0 - 

July l2tfJM2.fl +1.01 — 

Odohci ?tfJ)-47.D — 

Saif*-: 2 '«• lots or l.SoO kilns. 
SYDNEY CREASY (In order boyer. 
seller, busInwA. wrtes)— MIcrM Ceotract: 
Slay 341.1. 341.4, 3(2,6441.3. 38: July 340.3. 
346fi. 40.5-34 tA 4: Oct. 351.0. 351.5. 

321.0-351.0. o: Dec. 353.0, 359.5. 358.0-3S.4. 
7: Mardi 3«j). 368.5-365.0. ID: May 
305.3. 3.79.5. 389-5-369.0. JS: July 372.5. 

373.0. 3T3.wre.O. 5: Oct 375.0. 373.5. 
373,9-375.0, 12. Total sales: 131 lots. 


SMITH FIELD (pence a pound)— Reef: 
Scottish killed rides 53 J) to 563: Ulsier 
hindnuanere 58.0 ro 71. D. (oremiarters 3S.t 
to 40.0: Eire hlndouarters fiT.O to 70.0, 
forequarters 38.0 to 40.0, 

Veal: Dutch hlnda, and ends 98.0 id 

100.0. „ ^ 

Lamb: small, new seasnn 67.0 

to 70. 0. Impnrted frozen: New Zealand 
"PL 4B.0 10 46j. PM 44-0 to 45.6. PH 43.0 
ID <4 0. . 

Hajrsrcts: EoEllrii 38.0 to E2.0. Scotusn 
35.0 In «0.0. 

perk: Enslifo- Ins than IDO lbs 38.0 
in 43.0. 1 00-120 lbs 38.0 U) 42.0. 120-160 tbs 

3 fi 0 in 11 . 0 . ... 

MEAT COMMISSION— Avars ce fatstork 
prices rt representative tnarkers nn 
April 11. GB— Cattle fl7.84D 3 kg. l.w. 
i+B.41): O.K.— Sheep I332p a ku. W. I -7.6*: OB— Phis 83 ’p a k£. l.w. 
t+BJi. England and Wales— Cattle down 
9JS per «m-, average price 87.2SP 
(+0.45): Shtep down ■SU par ceoL. 
average price 139Jp 1—1.9): PlfiS Jiown 
0.0 per cent- average price fi!.lp (+0.9). 
Scotland— Cattle up L5 pfir CCD I,, aver ace 
price 68.43 d {+fl.l8l; Sheep down 8.6 per 
chl. aver ace price IS&Sp f~0.4i* Pigs 
down 27.7 per cent., average priw «-Bp 
1 + 0.91. 

’COVERT gaRDEM - (Prices In aterbiw 
a package u hless " stated i— Imported 
produce: Oransw— Spania: Bloods 3.20- 
3,40: Cyprus v al™ria La its 13 Tsilos 
3 20-3.40: Jaffa: Sltxtaourl 3.73ri 03: 
3.40: Cyprti': Vatoocia Laies IS -Wloa 
3L4fi.lSfl. Lem®**— Itoltoa: •iflfl/JSfl's 3.70- 
3.R0: Cyprus: 3.SMJM: Spanla: Small 
trays 3n '58'* 7-40-LM. Grapefruit— 

CrpnjB: ts k« |0S S^O-SjO: 20 kilos 3.00- 
3.50; Jaffa; SO kilos 2J04H): U.S.; Ruby 

Red 13 liilos 4 .®. Oruwtifiues-J ama tea n : 
6 J 5 . Applcfr- 1 ^renrii: Golden Delldons 
M lbs M‘s 2 .H 0 - 2 . 76 , 72 's 2 . 78 - 3 . 00 : 40 lbs 
5 . 404 . 00 , nnlden DeUeKws, Junwte pack, 
per tuwnd 0 - 1 S- 0 . 13 : Italian: Rome 
Beauty, per pound 0 J. 4 . Golden Delicious 
0 . 11 - 014 : IT.S.: Red Delirious 7 .S 8 -S. 00 : 
Macintosh 7 . 50-7 SO; S. ’African.* Dunn's 
6 . 3 M. 40 . JnnatbM 7 , 00 - 7 . 20 , St arid HS 
Delicious 7 . 30 - 7 . 60 : Chilean: Crdonp 
Smith r. 20 - 7 . 60 : New Zealand: Cox’s 
Oransf Plpptns 1 K /534 S. 004 . 50 . Pears— 
S. African: PacWfJOT’a Tritttnpb 7 . 50 - 7 . 68 , 
Bcnrre Hartif 6 . 50 - 7 .M; pmch; Con- 
fprence per po«ad - 0 .H; BelAian: 0 . 114 . 15 . 
Crapes— s. African: Waltham cross 5 . 60 . 

Very little has been published 
in the Brazilian Press on these 
disturbing results, which a British 
grass expert has confidentially 
described as H a skeleton in the 
cupboard” for the present govern- 
ment, However, it is clear that, if 
the Amazon jungle is not to be 
completely destroyed, the lessons 
of these first tough experiences 
must be widely divulged. 

The main underlying cause of 
the problems has been the com- 
plete disregard shown by 
farmers of environmental con- 
siderations. The manager of one 
of the largest ranches, owned by 
a multi-national company, com- 
mented : “Ecology is a new- 
fangled profession that was in- 
vented recently. It hasn’t got any- 
thing to teach us.” 

This lack of interest in pro- 
tecting the land historically has 
occurred throughout the process 
of pushing back Brazil's agricul- 
tural frontier. Because of tbe 
country’s vast stretches of un- 
occupied, usable land, it has 
always been cheaper for the 
farmer to move on to another 
plot of virgin land, rather than 
worry about soil fertility levels. 

Although this system of land 
occupation has made economic 

BarUnka S40; CtaUean: Thompson Seefl- 
kss a kilos ABO. Plums— S. African: 

Golden Klnu'SonBOld per Pound 
Bananas— Jamaican: Per pound 0.1M.I». 
Melons— Chilean: White 4-50. Green 5LS0: ; 
Colombian: Green 3.00. Avocados— i 
Israeli: Hass lfi/24:s 3.70: S. African: 
Puerto 4.50-4.80. Strawberries- Israeli: ! 
0.40: Spanish: Letfm*— Dutch:.! 
34'x ISO. Pineapples — Ivory Coast; 0-40- 
0 90 each, Onions— Dutch: Large 2.60- 

?’7D, Medium 1.80: Chilean: Bans approx. 
50 lbs a'S’s 4.SIW5 00. Bos** aonrox. 
42 lbs 48/100 3.00-5 JM. Capsicums— | 

Kenya: Per pound 0-40: Canary; 0.5$. i 
Cetera —Spanish: LTs/STs 5.00-5 80. | 

Potatoes-Canary; 3SW.0#: Exypdan: , 
a.WM.00. Cucombers— Dutch: T4/I8'a LB0- 1 
J JO; Canary : 1-20- Tomatoes— Canary : , 
4.00-5.50: Jersey: Per pound OJO. 

English pradooe: Potatoes— Per 58 lbs 
WWrp/Reds ■? o*-2 **n Lettnre— Per r'« 
1 . 31 M. 40 . Beetroots— Per 2 S lbs 1 J 0 . 
Turnips— Per » Uw OJBO-I.OO. Carrots— 
Per has 0 . 70-1 JO. Parsnips— Per 28 B» 
1 . 00 . 


GRIMSBY FISH— Supply moderate and 
demand goed. Prices a stone at ship's 
side unprocessed: Shell cod C3-50-53-60. 
Codllnes £>.50- £3.00. large haddock £3 JO. 
medium haddock a.M-£3.B0. small had- 
dock E.70-£3.20. large plaice n.30-PJD, 
medium plaice £3.30-13.50. best small 
plaice re.s0-M.70. skinned dogfish fiance 
£9.00 imcdlnpti £7.50. reds £1.70-£2.10. 
saiihe n.80-£2^0. 


COTTON. Llvcrpeel— Spot and ship- 
ment sales atoonoied to 854 tonnes, 
brtnelm: the tnial for for week so for 
to 1,193 tonnes. More enterprise was 
i-rtdeni amana users and fun her onern- 
tinrw occurred In Tu r trlri» »nd R"wh« 
qualities. F. W. Taiieraall repons. 
Support came In several African varieties. 

sense for the individual fanner, 
the country could pay a heavy 
price in the future for the exten- 
sive damage to the land that 
baa been caused in exchange for 
preposterously small, short-term 

An Australian soil expert, 
brought up in muck harsher 
climatic conditions, aptly com- 
mented: “Brazil’s problem is 
that it is just too' dam rich in 
well-watered land.” 

The. damage caused by this 
type of occupation is much more 
serious in the Amazon because 
of the vei? peculiar characteris- 
tics of the complex tropical 
forest which contains 500 to 600 
different species of flora. 

Tbe riotous jungle is the result 
of a delicate and complex inter- 
change in which limited amounts 
of nutrients, predominantly held 
in the biomass not in the soil, are 
recycled within the ecosystem. 
When the vegetation is destroyed, 
this delicate balance is destroyed. 

With the planting of grass, the 
cattle farmers are imposing a 
much simpler ecosystem, with 
four or five species, all rooted 
in the soil. Unless very great 
care is taken, this big transfor- 
mation has a brutal impact. 
Once tbe residual nutrition is 
absorbed, the addic, lateritic 
soils, which dominate in the 
Amazon, cannot stand up to the 
long hours of exposure to the 
scorching sun and to the torren- 
tial rains. They become hard, 
brittle and unfertile. 

problems of bush invasion, 
fungus, poisonous plants and soil 

JYo-oue quite knows how to 
bait this process. Some pallia- 
tive measures can be t aken, such 
as fertilising with phosphorous 
chemicals, or planting legumes to 
enrich th^ soil with nitrogen 
captured from the air. Susanne 
Hecht, a U.S. agronomist, pointed 
out that tbe forest itself possesses 
large quantities of native 

Rather than importing alien 
legumes, sbe believes that 
advantage must be taken of these 
domestic legumes, with a selec- 
tive manual cut of the vegeta- 
tion. instead of blanket destruc- 



Despite these risks, the cattle 
companies have been clearing 
the land in the traditional slasb- 
and-burn method. The towering 
trees are frequently toppled by 
a 100-metre chain, pulled by two 
huge imported Komatsu tractors. 
Vast jungle fires are created in 
August and September to burn 
away the dead vegetation. One 
of these fires was picked up by 
a Lasdsat satellite in 1975. bring- 
ing about vehement protests in 
the U.S. that the jungle was 
being destroyed on a large-scale. 

The cleared jungle is then 
sown with guinea grass, generally 
by planes. During the first two 
or three years, the grass grows 
impressively, sprouting by as 
much as an inch a day during 
the rainy season. However, from 
the fifth year onwards, fertility 
levels fall off drastically, with 


Prices per tonne unless fflttei 

Another procedure. that 
farmers are adopting on a large 
scale. may prove counter- 
productive. An Australian 
agronomist has called “ tragic” 
the spraying of the land by 
plane with Tordon, a diluted 
form of defoHant imported 
from tbe U.S. to control bush 
invasion. He pointed out that, 
the defoliant destroys all broad- 
leaved plants, including legumes, 
as well as some but not all 

Due to Tordon's residual 
effects, this practice could “set 
back the use of unproved 
legume-grass pastures for 20 
years or more,” he believes. 

Although there is no public 
discussion of these problems, 
the Brazilian Government is 
giving indications of growing 
concern. All tbe large cattle 
projects are set up in the region 
under the supervision of 
SUDAM (Amazon Development 
Agency), which has provided tbe 
ranches with £90m. in tax 
rebates since 1966. 

In the early days, SUDAM 
approved projects in an indis- 
criminate fashion, authorising 
69 new ranches in 1969, for 
example. In contrast, only two 
new projects were approved 
last year and SUDAM is 
demanding the reformulation of 
existing projects on a sounder 
technical basis before releasing 
further funds. 

While this new rigour is 
clearly beneficial, it is doubtful 
whether on its own it is suffi- 
cient to ensure the ecological 
survival of the Amazon region. 

U.S. Markets 

kpril 11 -4- or Month 
197f ; - aiid 



Free maraeb foin 
L'otiperu&i-b W. Bw* 
i moulb* ilu. do. 

i>-h Uatborte — 

4 month- da. da 

Gold Troy ck. 

Lead Cfe-li 

1 month*... 

Xii-kci — 

Free Market (tfn... 

£680 ! £680 

8*60-60 ...Stinj-i 0 

£699.5 '-9.75X656-5 
gy 15.76 -9.3 £670 25 
£691 '-6.0 ! £646.25 
£706.5 — 7.75.C660 
S 178.876 +1.0 ! 5 187.876 
£3133 —2.0 '.£307.75 
£319.25 -0.75iK5II.2fi 
j 1 t 

8LS3 . 'Si.89 

41.03,..- I —2.04 

PlAttonm troy nx.. £117.50' 

Pree Market. !gll7.6b 

quicksilver |76lbi)|513U/3= 
Oliver troy oe. EMl.fip . 

4 monthn. [286. In ; 

Tin l'«ali £5.9375 

5 moot Its _...;£o.95 j '■ 

dun- '-ash £308.6 

3 month*. -...#314.5 l 

Prod overt... ...i8530 j 

Oils I I 

L'noonnt (Phil) S609i 

lirwimlnt l 37 isZ 

Linseed l!iude<0)...|S525 
Palm Malayan-.-, j $ 67 8 h 

: Cl 14.6 

+ 1.4 £123 

;* 125-50 

.+ 1.1 £87.9i 
+ 1.1 !293.1|. 


-1.6 l£86S.75 
UL25 £263.5 
!" !**»■ J 

' S680 

— 10 J) £647 


+ 12.0 3610 



exports fall 

.MANILA, April 11. 
fell sharply to 14,760 tons in 
March from 45,248 in February 
and 37.725 in March last year, 
Philippine Coconut Authority 
figures show. 

Copra exports in the first 
quarter of tbis year fell to 
98,317 tons from 118.875 in the 
same period last year. 

Lower copra shipments in 
March were due to traders hold- 
ing back exports in anticipation 
of higher . prices, industry 
sources said. 

Crude coconut exports rose in 
March to 90.716 tons from 55,208 
in February and 68,191 in 
March 1977. 

In first quarter of 1978 coco- 
nut exports totalled 216,495 tons 
against 155,310 in the same 1977 


Malaysia buys 

Chinese rice 

KUALA LUMPUR, April 11. 

Malaysia has bought 200,000 
tonnes of rice from China for 
delivery this year to help over- 
come the shortfall in its own 
crops caused by drought in major 
producing areas. 

Mr. Yang Amri, acting director- 
general of the National Rice and 
Padi Board, said a first purchase 
of 100,000 tonnes reported Last 
month was followed by a Chinese 
offer of a further 100,000, which 
Malaysia accepted. 

The country has also bought 

160.000 tonnes from Thailand and 

10.000 tonnes from the Philip- 
pines and has been negotiating 
with those two countries and 
Burma for further supplies, other 
Government officials said. 

Reuter ■ 

Soeda I 

Uu|ira PhilipL— .~.|$59?r +5.0 8455 
Soyifoe&o (U&l.-, IJ530Q.50; +6.3 ;sB8I 

Grain* l 

dnrtey EKC. | - • • • 

Borne future* ..~£80.4 —0.5 £73.0 
11 KM 

fraud; .\aiAwiSlD5.7b £100 

Wneu- , 

\al It* I. Spring. '£&5. 25«, l + 0.2b £88.5 

Sol (Unlirinter ; ; 

Kmjll-dj 3Iilltn u .. l £97.5 £96.5 

(.'tii® ?lupineni.... £2.129 +38.0 £1.993 

future July £2.008 +S2.5'£ 1.897.2 

ttiffee Em tire.... j 

July £1.697 +62.5' £1,478 

C-uti'.'u ‘V Index... 69.03c* : 67.9 e 

Kubber kilo 47n • 1 49ji 

-iiagar(Kaa) £10B ( + 2.0 C94 

Wi»i t tupa64w kilo. .. 274p |„ :272p 

♦Nominal. t Ooquoted. ' s MayJune. 
* June. e&prO-June. » Aarfl-May. r Mas. 
x Per nm. 

financial times 

Apr. H Apr. lO.Uonrn 1 tut- in" 

839.88 1 239.44 ) 835.94 1" a81.25~ 
l Rasa- Iniv I. iiqs ins>~ 


A pi it tl ' Aprit nfMontli t-j, .j Ytm W 

1442 . 6 1 1436.8 1 139L2 \ 1741D^ 
iBasei sauiMnbM in iB 3 i=inni 


Aunt | April 1 AiwiUj^iew 
Jnaa 11 1 10 1 <»«».. I nc-.i 

3pul ....j3;4.8E 361^3ldSg 95440.27 

Put uregj355.363S2. 12:645.7 4 427. 10 
(A Waa# l«wS®3joB) 


pri* April jUvmb.lVai ■ 
11 10 «u j i 

■pit? C,wniit.v|a06 905.4 rtO.S 

“T rnSSSSSTii isaiziani 



. Stocks held by members of the 
International Pri m ary Alumi- 
nium Institute : at the end of 
February totalled 2£8m, tonnes, 
unchanged from a month earlier 
but 176,000 tonnes more than at 
the end of February last year. 

Members- reported total stocks 
of 4.42m. tonnes against 4.44m. 
tonnes at the end of January and 
4^0m_ tonnes at the end of 
February last year. . 


Cocoa and 
coffee rise 

NEW YORK. April 11. 
COCOA rfowil Imai-up bid on trade bay- 
ing after reports of an Inferior Ivory 
Coast crop. Coffee dosed limit-up bid 
on producer cuts to Central and South 
America. Precious Metals closed Snn on 
Commission House and local buying alter 
* lack of fresh initiatives by President 
Carter m the fight against inflation. 

Cocoa— May 1E2.70 U5B.7IM. July 15S.75 
<132.751. Sept. 155.63, Dec. 150.25. March 
l«J0. May 143.50, July 141.10. sales*. 
*33 lots. 

, roOco—- c " Contract: May 179.B7- 

190.00 (173.751. Juts 1SS.34 bid C154.34i. 
Sepi. 139.63 bid, Dec. 126.67 bid, March 
120.30 hid. May ita.00 bid. July lta.00- 
IJ9.W1, Sept. I13.mM20.Ofl. sates: 525 loti 

Copper— April 6U0 rn.50i. May 61.40 
181 Jfli. June 62.00, July C2 .j 0, Sept. 03.50, 
gfS: Jan - 83-30. March 8&3fl. May 

Bi.50, July W.50. Sept. C»j0. Der. 7L00, 
Jan. 71.50. Sales: 4.000 lots. 

Cotton—.N'O. 2: May 55.60-55.75 (58.20), 
July M.90-S8.S* (37.63.. QcL 58.80. Dec. 
&84-59.B0. March 81.15. May 61.6M1.75. 
July K.004S2J15. Sales: 333.000 to«: 

, *Cold— ,\pnl 180J10 fITS.TOi. May 1S1.00 
079.oDi. June 792.00. Au*. 1S4.4D. Oer. 
1S6JI0. Dec. 15S838. Feb. 1P3.10. Aarll 
194.90, June 197.30. Aug. 20(1. 70. 0«. 
203.70. Dec. 206.70. Feb. M9.70. Sales- 

5.000 lota. 

TLtoMbimw toosi" 24.00 tsaraoi, Xvtr 
> one Prime sleam 23.30 asked i23.Ht 

+Maize— May 2641-2031 (2«;». Ju+y 262- 
2B1» 1 283 1, Sew. 2ja.’-25?. Dec. 23S1-33S, 
March 207, May 2681. 

SPIarinnm— April 2 19.50-221. DO 1.215.40), 
July 224.00-223.00 (222.70 1, Oct. 22S.B0- 
223^0, Jan. 232.S1K&2.S0. April 23E.30. 
237.10, July 240.00. 

SSUvor — April 532.30 (32f.l0». May 331 jfl 
(526.40), June 538.40. July 312.30, Sept. 
530J0. Dee. 5112,711, J an. 3S0.00. Afareb 
STaJO. May 5S4.20, July 583.00. Sunn 
601.30. Dec. 615.10. Jan. 619^0. 

Soyabeans— May 710-7M »70Ti. July 697- 
6»5 (SKi, A US. a avflflfli. Sept. 630-652, 
Nor. 62tt«W. Jan. 635-flM, March fi4l. 
May 045. Meat — May wiJo-lRl.09 
(lSO.BOi. July 184.00-1S3.70 (lSS.IOi. AUi. 
3S2JO-ia.Ofl, Sept. 177.00. Oct. 171 .So. Dec. 
17180-172 JW. Jan. 173.00-174.DO. March 
176.30-1 7T7.30. May JT7.3O.1TS.50. 

Soyabean Oil-May 25.90-23.K t23J3). 
July 25.JO-S5.20 ( 25.07). Aua. Sf.SO-L'4.55, 
SepL 23.60. Oct. 22 .SS. Dee. 22.43. Jan. 
22, tO. March 22J0-22J5, May 22^0.22.25. 

Sugar— No. 11; May 7.91-7.93 (7.95), 
July 8.17-851 (SJOi. SepL 3.U-S.44. Drt. 
S.5S-8.56. Jan. 8.91-8.95. March 9 jS- 9.30, 
May 9.54. July 9.700.74, SopL 9.93-9.95, 
Sales: 5.310 lots. 

Tin— 510.00-521.00 asJred (320.00-331.001. 
—Wheat-Slay 330i-331 i33U<. July 384- 
334) <3321). SepL 3375, Dec. 342-StL March 
346. May US. 

Winnipeg. Aonl ll. ttRye— May lift JO 
hid Oi&OO trldJ, Jnly 112.90 bid (113.70). 
Oct. 1K.S0 asked. Nov. 7 12-20 bid. Dec. 

112.00 bid. 

tfOat*— May 82.40 181.50 bid). July 73.70 
t7S 00 ashed), Ort, 7K.00. Dec. T7.ftJ asked. 

iJBaricy— Maj’ 83 JO (RlJWi. July 32.00 
bid 18L20 bMi. Ocl SL 20 bul. Dec. S03 

SSPIaxseed— U ay 254.50 bid <252.00 bitfl, 
July 254.00 bW (252.00 asked). Oft, 255.00 
Old. Nov. 554.00 bW. Dev. 5M.OO bid 
^.Whoai-SCWKS 13.5 per rent, protein 
content at S(. Lawrence nut availaWa 

All cents per pound ex-warehouse 
unless Dtherwlse stated, * S’s per tro* 
onnw— lOttounre lots, f Chicago looso 
SS wr 100 lbs— Dept, nr ARrimlrun? prices 
previous day. Prime steam fob NT 
bulk lank ears. 7 Cents per jfi-& bushel 
rx-vra re house, S.IMO-bushel lots. uSs per 
iroy ounce for 50-ounce units of 999 
per . oat. purity delivered NY. iccntt 
tier Lrty Otolee ex-u ftrehousL 1 . 11 New “ U ■' 
contract in Ss a short ton for bulk iota 
n! 100 short lou delivered fob curs 
Chicago. Toledo. Sl Louis and Alfop. 
•* Cools per 69-lb bushel in store. 
+t Cents per 24- lb busheL it Cents (**■ 
<S-Ib bushel es-H-a rehouse. §5 Cents per 
SB- lb bushel i-x-wnrehouse, lJXIO-basbui 
lots. tlSC Per tonne. 


4 . 


Financial Tinies. Wednesday April 22 1978! 


SmaQ improvement in response to 

Share index up 7.1 at 470.4— Glaxo rally 

Account Dealing Dates 

•First Declara- hast Account 
Dealings lions Dealings Day 
Apr. 3 Apr- 13 Apr. 14 Apr. 23 
Apr. 17 Apr. 37 Apr. 28 May 10 
May 2 May 11 May 12 May 23 

* “ How time " dealings may take place 
Tram 9 JO a.m. two business days earlier. 

First interpretations of the 
Chancellor's Budget proposals 
were sufficient to give equity 
markets a small boost in the 
after-hours' dealings yesterday. 
However, the late improvement 
resulted mainly from a mark up 
and the majority of leaders were 
rarely tested at the slightly 
enhanced levels. 

Prior to the Budget statement, 
trade in the equity leaders had 
been very slow — but prices edged 
a Utle higher on the odd buying 
order and by 3 p.m. the FT 30- 
share index was showing a gain 
of 2.S. The extent of the late 
advance was reflected in the index 
which closed 7.1 higher on the day 
at 470.4. In contrast. British 
Funds gave a little ground with 
long-dated stocks recording losses 
to half a point and short-dated 
issues fails ranging to ». The 
Government securities index lost 
0.32 more to 73.60. No dealings 
look place in gilt-edged after the 
Budget, but the increase of 1 per 
cent, to 7J per cent, in Minimum 
Lending Rate came as no surprise 
to the market. 

Overall, trading conditions were 
again very slow — official markings 
of 4,244 compared with 4.662 on 
Monday — and the day's interrat 
centred chiefly on possible bid 
candidates. Among tbe sectors. 
Brewery and Distillety shares 
were given a late fillip in tbe 
absence of any increase in excise 
duties, while Tobaccos were 
undeterred by the increase in tax 
on high tar cigarettes. The FT- 
Actuaries indices for Breweries 
and Wines and Spirits rose 2.8 
per cent, to 227.35 and 3.4 per 
cent, to 256.39 respectively. Rises 
led falls by 5—2 in FT-quoted 

Gilt-edged remained unsettled 
awaiting the Budget proposals 
and further light selling from 
holders nervous of a too generous 
hand-out took { off many hlgh- 
coupn longer maturities' and as 
much as $ from selected shorts. 
Business ceased at 3.30 p.m. and 
was not resumed after the 
Chancellor had completed his 
speech which, at first glance, con- 
tained few unpalatable measures 
—the point rise in Minimum 
Lending Rate to 74 per cent, was 
always a possibility and the 
£2.5bn. stimulus was near to 
many predictions. Thus, with 
the recent uncertainty removed, 
the market was expected to enter 
a period of short-term stability 
with the emphasis returning to 
the yield structure, particularly 
at the longer end where the 
returns arc above 12 per cent, 
in selected issues. Corporations 

experienced a similar trade and 
sustained losses extending to 

German Young 45 per cent 
were again favoured in Foreign 
Bonds and rose 25 points more 
to £400. 

Interest was light both, before 
and after the Chancellor's 
Budget speech, which contained 
little to concern the investment 
currency market. and the 
premium hovered between 102 
and 103 per cent, prior to closing 
a net i lower at 102J per cent 
Yesterday’s SE conversion factor 
was 0.6S29 (0.6939). 

Lelie & Godwin bid 

Lloyds Brokers provided the 
main interest in Insurances. Deal- 
ings in Leslie, and Godwin, 93p, 
were surprisingly suspended at 
the start of business prior to the 
disclosure that tbe group had 
received a bid approach from 
Frank B. Hall, one of the largest 
U.S. general insurance brokerage 
concerns. Matthews Wrightson 
closed 5 easier at lS5p ahead of 
Friday’s preliminary figures, while 
Sedgwick Forties shed 7 to 37Sp 
and C. T. Bowring 2 to 105p. Else- 
where. Guardian Royal Exchange 
softened 2 to 220p in front of 
to-day's annual ’results but 
Hambro Lire, which report on 
Friday, hardened 3 to 30Qp. 

With the exception of Barclays, 
which elosed a few pence harder 
at 345p, the major clearers 
remained at their overnight levels. 
Reflecting the chairman's 
optimistic statement, Allen Harvey 
and Ross gained 10 to 450p in a 
thin market among Discounts. 
UT0TT edged forward 2 to 39p in 
tbe late trade in Hire Purchases. 

Breweries improved in late 
active trade on relief that excise 
duty rates had not been raised 
in the Budget. Allied hardened 3 
to S9p as did A. Guinness, to 177p. 
while Bass Charrington closed 5 
higher at 158p. Scottish and New- 
castle were also supported at 
66 tp, up 2). Distilleries also took 
a turn for the better in after- 
hours' trading. Distillers led the 
way with a rise of 6 to 181p. while 
Highland improved 3 to 142p and 
A. Bell 10 to 238p. 

Buildings, subdued in front of 
the Budget proposals, ended with 
scattered improvements. AP 
Cement added a couple of pence 
to 244p after 241 p, and London 
Brick firmed a similar amount to 
68p. Contracting and Construc- 
tion issues had no decided trend: 
Richard Costain put on 2 to SS4p. 
but Tayfnr Woodrow eased .6 to 
35Sp and Marcbwiel 4 to 2$4p. 
Selected secondary issues to 
attract speculative interest 
included J. W. Henderson, which 
rose 10 to 154p. and Heywood 
Williams. 4 better at SOp. Small 
buying lifted Ibstock Jobnsen 3 
to 14Sp. while renewed support 
had Brown and Jackson 2 better 
at flop. Crossley added a penny 

more to 65o in further response 
to the expected improvement in 
trading conditions in the current 
year, but Fairetough ‘remained 
unmoved at 67p following the 
chairman’s optimistic assessment 
of growth prospects. 

Initially slightly easier at 351p, 
Id rallied late to close 2 better 
on balance at 35p, Elsewhere, 
Albright and Wilson finned 2 to 
lllp, and- Press comment 
prompted a marginal improve- 
ment in Crystalate to 24p. 

Narrowly mixed at the House 
close, leading Stores edged for- 
ward later following details of the 
Budget proposals. Mothercare 
led the way with a gain of 6 to 
lBOp. Wool worth unproved 2i 

Brotherhood stood out with a rise 
of 14 to 149p on revived bid 
speculation in a thin market— the 

interim results axe doe on April 
IS. Speculative enthusiasm was 
also a factor again ki ML Hold- 
ings, up 5 more at I07p. Await- 
ing their respective preliminary 
statements to-day, dynwed gained 
2 to llSp and Babcock and Wilcox 
hardened a penny to llfip. Davy 
Internationa] unproved 3 further 
lale to 230p and similar rises 
were seen in Eva Industries. 9 Ip. 
Christy Bros_ 43p, and Cbemring, 
57 p. Imperial Metal Industries, 
at 60Jp. were tittle affected by 
the chairman's comments at yes- 
terday's annual meeting, while 
Sensor remained at 224 p despite 




wards the construction and deve- quiet session and drifted Tower 
lopment of hotel accommodation, ahead of the. Budget A slight 
Grand Metropolitan ended 3 up at Improvement in piawy after the 
lOSp and Trust Houses Forte 5 -dose still left fee majority with 
higher at 200p. ' After having ' modest falls in reflection of the- 
touched 69p, Savoy A closed with- 1 per cent hoist in - 
out alteration at Tip. Lending Bate. Chesterfield. 295p 

and Bradford, 213P, both finished 

filavn rallv 5 ¥5* ?? *** p “i«<y Hotting 

Uiaxo rally and Investment, SlSp. while Hjun- 

Dealers* first assessment of the S 6 * 5 ?? 1 eased around 8„ 

Budget was favourable and miscel- “® e, ™ er ®» Hallway Holdings fell 1 
laneous Industrial leaders were ? _ Qn selling accompanying 
marked up late. Glaxo, which had “LW rumoured bad discus- 
already rallied 10 following com- 118,1 heen off. - . ; 

meat on the interim figures, im- .Otis passed another ' quiet 
proved further to finish 13 higher session and closed with'.modesc- 
ou fee day at 528p, while Beecham, improvements. Shell firmed' A to 
at 650p, recorded a sympathetic 520p, bat British Petroleum! 
improvement of 10. Unilever ended remained at their pie-Budget 
6 . to tbe good at 518 p and Boots level of 760p. Lasso edg&Tioc- 
closed 2 up at 216p as did ward to I44p, while Uttremax 
Bo water, at 189p. Still reflecting added 3 to gstp and Trieentrol 
Lonrfao’s decision to relay its bid hardened 2 to 158p. Investmair 

rom Royal Dutch at £454, 
more to 12 Op; with Lonrho dosing; Sceptre Resources rose 50-to578p_ 


Government Sea. 

- Fixed Interest— 

: Industrial Ordinary 


Ord. Pir-y Wri 
Ratio (Detjfti- 
.! Doling! «wAwl — , 
Equity turnover £m~j 

Equity boqplna totaL, 



77.0S -77.25 

. &21 













73.9® 74, 
77.41) 77 

65.02 i78., 

74JJ6 7334 
- '7733 7732 
47M| 470.2 4673 
153.7] 1513} . 156J 
S.7B! . H.76|; -5.78 
.1731^1830} 1731 
8071 .8.W* 8.25 

5,9841 '4^M 5,414 
5946 .753$ 
16324 22.623 


A you 

. 5.63 
. 53.35 . 

Ifl am 482.7: 11 a'3> 463.7. NOMttSU, 2 pm «SJL - .7^. 
i poo. &3A. 3'jun.tBM. •• ; 

Latest tffifT ajK ' .. 

•Based on S2 per cent.' corporation tax, tMUsSiB..: "j 

.\ Basis 1M Govt. Socs. 15/10/38. Fixedtot. 192S. rod. Orfl. 1/7/35. Gold 
iftw 12/8/55. SE ActmtyJuIy-Dec. IM Z. ■ 



1978 ' - 

Since Compilation 





Govt. Baea._ 

Fixed Int.._ 

'too. Ord — 

















e/i m 








49.4 ' 





— Daily : 




Tblala..- : — 

B^SuyAr ’tette 






. 30^- 


“ 34.7 

MK8 " 








a penny better at. Tip, fee bid 

for “SUITS 1 

International Pacific 

higher bullion price although, they buying pushing the price-np to 
. Se onities shaded in the afternoon to dose 200p before a reaction led to a 

to 67 Jp and simil ar rises were 
recorded in UDS, S8p, Burton “A,” 
119p, Combined English, S7p, and 
Gussies “A” 28Sp. Marks and 
Spencer rallied from 148p to 
finish a penny harder on balance 
at 148p. Elsewhere, Rainers, still 
on bid hopes, put on 3 more to 
llOp. and fellow-jewellery concern 
H_ Samuel '‘A" at 266p. recorded 
a Press-inspired improvement of 
4. Among Shoes, K were marked 
up 2 to 53p in response to an 
investment recommendation. 

Little of interest occurred in the 
Electrical c ector. In common wife 
the other leaders, GEC ,246p, and 
EftIL 157p. both improved a few 
pence. Elsewhere, buying activity 
revived in F. W. Thorpe, up 3 at a 
fresh 1978 peak of 67p. Electronic 
issues to make a little headway 
included Farnell, 4 firmer at 224p, 
and Highland, a penny dearer at 
25p. BICC unproved 2 lo 113p, but 
Decca issues were dull, tbe 
Ordinary and “A” both easing 5 
to 4I5p and 405p respectively. 

Following the general trend, 
leading Engineering were edging 
higher late and John Brown 
settled 4 dearer at a fresh 1978 
high of 304p, virile GKN. 2SIp. 
Hawker. 198p, and Tube Invest- 
ments, 364p, all closed a couple 
of pence better; earlier, a drifting 
tendency had been discernible. 
Elsewhere in the sector. Peter 

the increased profits. T. W. Ward 
continued in demand at 67p, up 2, 
and 600 Group were prominent at 
77p for an advance of 3. Still 
reflecting tbe note of caution 
about second-half prospects, 
Burgess Products slipped 2 to 

Associated Biscuit figured 
prominently In Foods, jumping 8 
to S2p following Press comment 
on fee preliminary figures. Rown- 
tree Mackintosh, results due 
Thursday, rose 5 to 398p for a 
two-day gain of 13, while Spillers, 
a dull market of late on the trad- 
ing statement which accompanied 
news of the company’s with- 
drawal from the baiting industry, 
recovered a penny at 27Jp. Asso- 
ciated British Foods, which to- 
gether with RHM is buying some 
of the Spillers* bakeries, moved 
up 3 to 64p. Press comment on 
the likelihood of further rationali- 
sation in the retailing sector on 
news of the agreed merger plans 
of Wheatsheaf Distribution and 
Unfood had little effect on fee 
companies concerned. Wheatshcaf 
held at 190p, while Linfood raftied 
to I32p. Tesco finished It harder 
at 42p and J. Sainsbury 2 better 
at 177p. Nurd in and Peacock, 
however, fell 2 to S5p. 

Hotels closed firmly, helped by 
the Budget proposals for in- 
creased Government grants to- 

a round 130p per share. Else- ,)*law fee best . - dose, of 19Dp for a net rise of 5, 

where, Letraset stood out with a nf ■ The bullion price dosed; SI Australians, had arrixady- under- 

fresh speculative rise of 8 to 159p, 01 1U 10 a 1378 pcak higher at $179i an ounce* and tone, helped By the early firmness 

after 160p, on continuing bid p ‘ . the Gold Mines Index, reflecting in the investment praimnid, but 

hope,s while Johnson Group Shippings hovered around the initially higher, investment, dollar there lead from Sydney : 

Cleaners, also on of a bid, overnight levels. James Fisher, influences, was 1523. a gain. -of .overnight and trading was at a 

gained 7 to 95p - %p, des- wbi ch reports preliminary figures 1.6. •" • ' low ehb. ' Tasndnex stood out 

pite a denial fr hairman. to-morrow, put on 3 more to I4ftr c . Advances were common with a- farther gain, of 15 to 85p 

Hnntleigh, whic: i lower for a two-day gain of LL , ■ - throughout the list, led by West on interest Inspired by their - 

annual earnings Monday, Sirdar returned to favour • in -D rie foatein. whose quarterly wolfram- prospects. Hamerstey 

gained 8 to 94p on n. ery hopes, Textiles on revived bid specula-^®® 111 ® 8 a f e announced ttrdaywjth- slipped a farther 5 to 170p. owing 
while Chamberlain Groop edged tion and rose 6 to 67p. Courtaolds otiier mines in fee Gold ESelds to their strike and bleak market- 

forward 2 to 50p on further con- finished 2 better at 116p, whfle ffnmp, gaining i. to £19. FS ing hopes, 

si deration of the record profits, small buying lifted TricovDfe 4 v <3eduld were the same amount Coppers were again, quiet and 

Speculative buying prompted an to 62p. - -'tiitfier at £16} and vam Jteefs 17ns were scarcely tested. - But 

improvement of 3 to 39p in LiL News of the raroosition of a ^ ' South Crafty and Saint Piran were 

Industrial Investments. Dealings health tax on hightar cigarettes Afrikander Lease continued to both. 3 harder. at 53p, responding 
yrere m ^ ^Ma^ere mad e tittle impact on fee.Toto^o Set^priS^ rf tI “ 


following overnight details of fee majors which closed firmly. 

200 P. per share offer from finished 3 better at 77p and 

Hill es hog AB; fee shares, returned industries Deferred 4 higher at 
at 203p compared with the sus- 262p 

ifrLSSi Sid 3£ 

dustries receded a penny to 157p, £JS Pa offer H1 Qn teble-Som 

after 154p, fonowing fee lower SSLjShLf ^ J “ om 

first-half profits. Robert McBride McLeod-StpeL 
relinquished 10 to 3?0p in a fein . 
market and BTR declined 6 to RTZ ' 


Still reflecting fee recently im- „ 0n better-than-expected^ annual 
proved sales performance. British figures, Rio TJnttHZinc advanced 
Leyland rose 5 to 29p for a two- to 201p before reacting'** dose 
day gain of 7; details of fee pro- only a net 3 higher at 195g, after 
posed rights issue at 50p per active trading. _ Among, other 
share were announced yesterday. London Financials, Selection 
Dunlop closed 3 up at 86p, while Trust moved up in sympathy, -gain- 
Lncas Industries, 290p, and Dowty, ing 6 to 402p. . 

180p, put on 2 apiece. "WHmot- Elsewhere in fee Tninhig sector, 
Breeden were sUghtly firmer at a ma j or buying order took De 
65p in front of to-days pr^ geers up 5 to 326p: the gronp^ ^has 
Uminary figures while renewed announced lte joint venture with 
support lifted Nelson David a the Botswana Government rfdr- a 
penny more to flip and Lookers new mine . other South 

34 to 60p. Lyon and Lyon finumed j^ftican Financials were steady in 
a penny cheaper at j.p follow- lifle ^ ^ higher securities 
ing fee results. t>,_j 

Newspapers and kindred trades K “ a - „ ‘ 

closed wife scattered improve- But features in the market were 


‘< 5 . 

1? ' 

raents. Bnmnlng Group hardened few. Trading in South Afrfcatttrrr^sary-soc^ 

2* to 67p as did “United, to 35 Op. Golds remained at a modest level. 

Property issues passed another hut they started firmer on tire 

■£i >■-' 

i£C -■■«- 



POODS (If - 

attofned net* Highs and Lows for .1 978, 

NEW HIGHS (104) 



BEERS (2t - 

FOODS <() ■ • 

HOTELS <1>- 

Tjfe & Lrle 


Bath A Portland Trafalgar Hot»a 

Cgwtv & Law Matthews Wrightm 

. PRQPEimr (io) • ^ 

Do. iZoc Cm. Altnatt London • 
Gt Portland Estates BDton (Pi. 

Land investors Bradford Prop. 

Law Land Ena. Prop. ShpcCm. 

Slough Estates lOpc Cm. *40 
Sunlav (By 

C. •- 


. w rr 



:V ; 

$ V 

t , 



s - 

: (i) . 



SHIPPING (1>- ...• 

Conrenhis 7pe Deb- 

„ TRUSTS (1) 
Scot. & Mercantile A' 

OILS (1) 
Shell T ransport 7 pc Prof. 

' zi 




RUI .. 


(4> . 



% y. 

Ir I'’. 

NEW LOWS (39) 


Treasury llijpc 79 Treasury 121, pc -95 
Exhc. I3pc i960 Treasury 9oc ■S2J90 
Treasury Siipc 79-Si Exch. 13UPC *96 - 
Each. 12UPC 1981 Red. 3 PC 1986-96 . . 

exdi. B4iPC >985 Treasury 8 «4DC *95-98 Olll 
Funding 6<znc ’85-87 Treasury 8 pc -02-06 Plantation — 

Up Dawn same 
1 « ‘ 4 

Funding S*.K *87-91 Deasurv 5<»c *08-12 Mines 

British Funds 

Corpns^ . Dpm. -and 

Foreign Bonds 2) M M. 

industrials 351 V» - 

Flnandal and Prop. _ 57 la W, 

8 ••• ' 7 U . 
* • ' » 


Treasury 7tac *12-15 » 

UNI. ICI 5 pc Pre*. 




v_i Zii 

^ r: 

- Si 


«9 37Z W71 

V' ki — 


-» -j iJ; 

Consolidated Gold Fields Limited 

has acquired by merger the outstanding 
minority interest in its subsidiary 

Azcon Corporation 

We acted as financial advisor to 

Consolidated Gold Fields Limited in this transaction. 

Goldman, Sachs & Co. 

New York Boston Chicago Dallas 
Detroit Houston Los Angeles Memphis 
Philadelphia St. Louis San Francisco 
International subsidiaries: 

London Tokyo Zurich 



April 12, 1978 




ta the Notice ol 7th February. 1978 
Informing EDR Holders ol a tree distri- 
bution of Ordinary Sham ol Common 
Stock f Shares "J at the rale ol one 
share per, ten Deposited Shares. EORs In 
denominations of 100 oach rcnrcsentfns 
the new Shares will be available lor 
collection against surrender ol Coupon 
No. 1 with cBect from 12th April. 1S7B 
at the offrccs oh — 

Robert Fleming A Co. Limited, 

8 Crosby Sgoare. 

London £C3A SAN. 

By due Internationale J Luxembourg 

2 Boulevard Royal. 


This is to notify EDR Holders that at 
the General Meeting of Shareholders held 
on Thursday. 23rd March. 1978. It was 
approved that an interim dividend Ol 
Yen 3.75 per share, corresponding to an 
annual dividend rata of 15 per cent, will 
be paid to all EDR Holders on record as at 
31st January. 1978 noon presentation of 
Coupon No. i on or after 25th April. 
1978 as under; — 

la) At the offices of the Agent;— - 

Banoue Internationale i Luxembourg 


2 Boulevard Royal. 


or (bj At the offices of the Depositary 
Robert Fleming & Co. Limited. 

8 Crosby Square. 


- ,n J 1 ** £J“® ol «W. unlets Persons 
dcoasnlitg Coupons request payment In 
U.5. dollars im which case they must 

w.a. BDiiars im wmen case tncy must 
comply with anv appricabfc Excfianpe Con- 
trol.. regulations) payment will be made 
In United Kingdom curreocy at the pre- 
vailing rate ol cvchange on the day the 
proceeds are remitted to the Depositary. 

Coupons may be presented any weekday 
(Saturday excepted) between the hours of 
io a.m. and 3 p.m. and must he left 
fur five dear business days for examina- 

United Kingdom income tax win be 
deducted from. Coupons paid In the United 
Kingdom at the offices of the Depositary. 
unless such Coupons are accompanied by 
declarations to the contrary in ac c ord a nc e 
with inland Revenue reauirements. 

Japanese withholding tax will be 
deducted at the applicable rate on all 
dividend* paid against Coupons upon 
completion by tho EDR Holders of 
declarations o» residency, such documonw 
being available at the aforementioned 
offices or the Depositary and the Agent- 

, Copies of the Interim Report are avail- 
able upon request at the offices of tbe 

DeposNggjj^f nd^ ih#_ Agent. 

„ Depositary. 


12th April. 1978. 



amounting^ W. _4T2A5m. were (Slued on 

1978. lor maturity on 12th 

July. 1978. at 6ia% per annum/ The 

‘ ‘ lu ‘ 

total amount applied lor was £45. 35m. 
The total amount of Bills ousts naino Is 

£ 13 . 900 . 000 . issued 12th April. 1978. 

due_lM L .J«Jj'j 1978. at. an aver^^ rate 

ol 6*1 p.a-. Applications totalled 
Total , outstanding £13.900.000, 



W-1. _'629 8T76. THREE CENTURIES 
Mon.-Frl. 9.30-5.30. Thurs. until 7. 

COLNAGH. 14. Old Bond St.. W.l. 
01-491 7408. INDIAN PAINTING — 
Moehal and Rafput 1500-1850. Until 
8 May. Mon.-Frf. 9JD-5J0t # sat. iu-1. 


grove. N.W.8. ART IN RELIGION. 

fox GALLSUES. Exhibition of the paint- 

ings bv British and European Artists 
from 1700-1965. 5-B. Cork Street, 

London. W.l. Tel. 01-734 2S26. Week- 
days, 10 - 6 . Sat. io-l. 

J. p. ii FINE ART, 24. Davies St.. W.l. 
OI-A9J2G30. LEGER — Drawings and 
GOuttMS 1910-1953. Until 2B April. 
Weekdays 10-6. 

L Mi l £X« A 5AySI» 2A - 0UYK3 SL. W.l. 

49 9.5 058. T15SOT- — Forty etchings, dry- 

pofnta and faenotlnts. U fit II Z1 April. 

SLOAW-^gT GALLERIES* 158 Sloane 
SL, -W.1. Modern paintings, sculptures 
ondgrapnics b r interesting Internal torul 

nnHli , £« ran * 0 ol m’kes. Tucs.- 
Frf. 10.00-5410. Salt. 10.00-1.00. 


ItNanl I Street- 734 0557. A la 
J4 e,1 ' , ' Thr “ Spoctacular 
Ss?ie 12AS 1-4S and 

miBle Of Johnny Hawheaworth & Friends. 

.2“* S'" 1 - faiWn. W.l 

Tf «_ great BRITISH strip 


Full Service Is our Business 

• Law and Taxation. 

• Mailbox telepbooe and 
teiex services. 

• Translations and secre- 
trial services. 

• Formation, domiciliation, 
and administration of 
Swiss and foreign com- 

Full confidence and discretion 

3 roe Pferre-Faiio. 12DM Geneva 
Tel: 35 as 40. Telex: 23342 





120 Acres Private Property 
Wmrfroitt, old trees, burnt down 
cudc. For additional details write; 
lb* Wsh Consulate General 
Munich /Germany 
la, Maaerfclrtfterstr 
D 8000 Manehen 80 . 





j ;— ■ .HI A UH bIMIP 

Sf"-? 1 Midnight and 1 aan. 
Mon.-Frl. Closed Saturdays. 01-437 

A A Conference Secretary 
Tel: HARROGATE 503051 
158 Hawn IZOph *3« AM Sliffi* 
Hnuf Cufwnca HO -fe 4 Privttt Hours * 7S 
Bw^nl D™ *g 3H -k BaJj« Ontrtiai. 

ill ULtall pju. 



First Last Last For 

Heal- Deal- Declara- Settle- 

iugs ings tion ment 

Apr. 11 Apr. 24 July 6 July 18 
Apr. 25 May 9 July 20 Aug. 1 
May 10 May 22 Aug. 3 Aug. 17 
For rate indications see. end oj 
Share Information Service 

Stocks favoured for ihe call 
included Silver-mines, John Hag- 
gas, Lad broke, Burmah OiL-KCA 
International. Yule Catto, Letra- 
set, Barker and Dobson, Maurice 
James, Premier Consolidated Oil, 


Staflex International, Keyser UU- 
man, De Vere Hotels, Lonrho, 
Mills and Allen, Pacific Copper, 
Campari, CH Industrial, St Piran, 
Maple Macowards, London and 
Northern, BSG International, 
Drake and Scull. Intereuropean 
Properly and UDS. while doubles 
were arranged in Gussies A, 
Silvermines. Spillers, Premier 
Consolidated Oil, KCA Inter- 
national, Letraset, De Vere 
Hotels, Campari and UDT. Short- 
dated calls were taken out in 
Trafalgar House, Letraset and 
Rio Tinto-Zinc. 


• No. 









marks price ip) 

on day 







+ 3 




50p . 



+ 13 







+ 8 







+ 2 



BATs Defd 




+ 4 



Midland Bank 

II • 






Shell Transport ... 




+ 2 










Commercial Union 







Grand Met 




+ 3 



Johnson Cleaners 




+ 7 







+ 1 



Marks &. Spencer 



148 . 

+ 1 



P. & 0. Defd 




+ 1 



Royal Insurance ... 









d i 


55 si'll? 

r pi- 


Hitfh j 

F.P. 26/4 ! Li'3 J 112 S»a» Holidays 


|l s 



3 = ifl| 

5 * 
— > 

- 5 

+8 6.75 




5 a 
c — 

= 5 



Pi“]Hwli; Uj* 








, P.I-. 












— ■ eirjl 

— I swii» ; 

— 1 101 Ijn.lOlIj 

— ■ £7iai 25 . 


! 9/5 


106 |i| 











Z&iai 85 


Aual. 1 nd-. 2ml. Pri 

, lAuier. Kyprew lul Fin. V aria tile S2. 

nffiritlaln* 9^ Uonv. Cuiu. Ue>f. 2ml PreL.'.., 

Kiwlek Ala lay. 10" 1st. ilort. '8i8S 

wGreenali Whitley 8% l’rs 

Ueiik' 4 Cactefi !0^ Cum. Pn?f 

Menri« fJ.} 8? Cum. Prf 

Alhi^unex Water 7? U*rt. Prf. 

Ponun fb.i 101;® Pe>-. Uov. Lu. 195588... 

Xalbes lllaf Cnv. [las. Ln. 79-85 - 

W. iirnmwieb Spring 116% Prf— 

Yorit Water US DeiJ. 1888 : 



'ifij’apj .... 
27i s 

90 p 

1U3 ( 
.102 U 







! 2 - 



< Z. 






m I « 

30f3’ 13/4] 3« 3B 
29/3; 1C; 5) 86 76 


Uiosiii" I 



¥ 'i 

|U, H. InduuLrialK, 
Wuinougfab... , u „ 

32 | 

86- l+l* 


Rcmmclauan dale usnaHy lost day for dealing tree of stamp duty, b Figures 
based nn omsprerus Miimaie. a Assumed dividend and yield- (* Forecast dividend; 
cover baaed on o reviews year’s- earnings, r Dividend and yield based on orospedus 
or aibcr official estimates far 1978. q Gross, t Pigtees assumed, t Cover allows 
for conversion of share* not now ranking for dividend or ranking only tor restricted 
dividends § piadnsc price to pabUc. pt Pence unless otherwise tndicafed- I Issued 
by tender. || OtTered io Holders ol Ordinary shares aa a ** rights," “ Rights 

tir my al cap/rallsatlon. ft MlaOnam tender price. H Reintroduced. If Issued 
Up_ta nnectlOD with n-ursanisatJon merger or take-over, |||| In trod action. Q Isaaod 

>jncr Preference bolder*. ■ AUatment letters for fnlly-paid}, •Provi&iOngl 
artly-pald allotmum lecei*. * With warrant* 


These indices are the joint compilation of the FinanciaZ Times, the iHStitizte of Actuaries 

StlBZtV Hi 


i r : 



and the Facility ^Actuaries 



Tues., April 11, 1978: ; 


■ Apr. 







Tear .; 
. «BO ; - 

t*ppw*> j 


Figures in parentheses show number of 
stocks pec section 



76 ; 

• Eat. 




Carp- - 




at 3*%) 
















idllri ||Blllft!l«Lvfck 



















13568- . 


- 05 
























































771 82 













14206 * 



















9257 ' 




































19137 . 











16560 ' 









23905 - • 







































































y /fi'f 

0.00 / 














11 3R 




























■ ioi 1 1 1>^ « ■ i f.i 4 rt ■< 1 1 li Ji l-.-j 












C3E 1 


wrxr i 



















OTjgr^Mliifi MMBBWSe 



























8430 _• 



. _ 


. — 























. — 




- 7661 


— 05- 


















— OJ. 









■ * L 1 







f 20620 




^3. ■ 

: v- 
s: * 


« : 

-4 v. 

f. T. 

'a ^ 

k ci 


.•] 1: 
.^1 S : 




Sr- - y 

. -V 



-.i; . 


FIXED interest price indices 

British Government 

Tues. ' 


Day’s . 

wt adj. 

xd ad). 

to dato 









• ■“ 



Over 15 years 



. — 









All stocks., 





Br. Govt A v. Gross Red. 

Lo* : "■ 5 je&rs. 

Coupons IS 

25 years- 

Medlum S y ears . 

Coupon* IS ycu3~ — 

25 yearn-.-. 

High 5 years — 

Coapotis , -15 years— 
' . . 25 years^ 


■ Tara. 
" 11 













10 ' 







10 Al 










914 - 







v . 

Tunadtyi April 11 

. Jprfpi Yield 
No. % 




Prf toy 




T 1 



■ 31' 


Smr v .; 

*8° *> * . . 
tiWfnJ. .J. - 

-• ' 




20-yr. Red. Deb. & Loans (15) 
Investment-XrustPrefs. (15) 
GomL and IndL Prefs. (20) 




1 12-29- 















J 38.78 


; 581)7. 




84Jf • • 

49-fi . 

JMtM'. 4 '- . 


a n v * firiwd to start*. 

f Rodenqufau yield. Hlolu and town- reard*.. base dates and aial 

Ones. * new Ust of (be CMaUtaunts Is watBhta tnua Ufa Puhftfcwlfc the 

Street. LuudH. HOB» fflY, prite 9Gp, t«r P®** 22 **- * 







; Abbey LlfcAsterancc Chi. Ltd. - ' 

1-3 St. PJrnTn Churchyard, EC4. . 0140901 
Bauit?FUpO — -_I322 

Equity Ace. 227 

PnwertyFi— 145.0 

Property Act:. . 152.9 • 

Selective Fund, ES2 . 

ronwrtlbJe Pawl. 12»_2 

pens. Properly 1647- ■ 

PeniSeloctire , »4 . 

Pens, Security-™;.. 133.1 
PnuUUluUW«d_L_ Z7U 

Pens-EWlltt-^ 148.7 - 

vProp. FA Scr. 4 1243 

: ftoa-FASer*... 
f Equity FA Ser. 4_ 52JL 
VConv. FA Ser.A— . 110.4 
rtfocey FA Ser. »_ J/U.4 

Erie®* u -April A valnatta 

Albany Life Assurance Cot. lid. 

U - - RM37SM3 

Coiertl fWWJO:Ufr Ins- C. IU-V NPI Pensions Management Ltd. 

M Bartholomew CWWd] them Cross. WX3137I 4XCracretairchSl_KC3P3HH. UH32342Q0 
Portfolio Fund.—..} • »BA J.~~ — MMaBKtFunil.._JM59 15Z.8I . ... I — 

PMttAlioCBpitSimHU - ..41 ft -—I — Trices April 3. Neil dealt nc Kay 1 

dreslmm Life Ass. Sot Utf. . ' New Zealand Ins. Ca (U.K.) Ltd.? 

ftpmtfc. 0302 TOB5 K airland House. Son t bond SSI 2JS OTP? 62955 

' ISi Z ”»*.K ?»lntPlaa.ln4fr UXgj } — 

m?3zz| - 

Growth to Sec. Life in Sot Ltd* 
Weir Sank, Bray -en-Th«ite«, Bdkx. TeL 34284 
Flexible Finance „.J OM 1 I ■ — 

LandbBDlr Sees. __ j_ mo l J — «■ — . 

LBjuUjan* s«. Afithl).7 .Mflfl .-*■ — 
G.&S. Soper Fd.__j BUM I — 

Guardian Royal Exchange 

Royal Escbange.ECS. - 1M-SB37UI7 

Property Bostda 1330.1 XWf — -4 “ 

Hanihro life’ Assurance Limited V 

01400 0031 

Abbey Unit Tsf. Mgr*. lid. (al fel 
72-60, Gatehouse Rd_ Aylesbury. 02900941 

AbbryCapiu>l_- T ,B12 33 21 I 4 02 

Abbaplacome ffli 40.01 +B3 538 

Abbey Inv.TsLFA.Rfr 34.71 4/41 

Abbey Gen. Trt_._|435 46ft +0.1/ 3.77 

Allied Bambro Group fai(g)? 

Hambroa Bsc. Hutton. Brentwood. Ease* 
01-588 2851 orltrentwood 10277) zu4fiB 
Balmnd Funds 

Al 6fr2j 5.74 

655 +0,1 5frfr 

3SJ +0.1 533 

337a _... 572 

7L3n 453 

Garfmort Fund Managers ¥ (al(g» Perpetual Unit Trust MngrnLV (a) 

2 .SL MmyAate.ECJ 4 8DP. 01-2833531 48 Hart St, Henley onlhame* 040128888 

irtAmerlcwl* _ g4.7 2bfrj J 0.73 Ppelu»IG*Glh 1383' . «-°l 1 «8 

British TsttAee.) _ 150.9 54 il *0.11 «* . ... 1 " 


ss=i = 

Norwich Union Insurance Group 
PO B<W 4. SfanrithKH 3NC. 060322200 

Managed Fond 2551 +0J1 — 

Equity Fucd 121.2 338J +0.4 — 

Property Fund 123.7 1302 — 

FUedliH. Fund 1543 142.4 -0J — 

OepoM/l Fund 20*. 7 1U1 — 

Nor. Unit. Mar. 15-. 191.4 — 

AMEV Ute Assurance li±f . • 

Ala« Ban. Alma bA. geigaie Repair 40101. 

•4®BM£=BS S3 :=| = 

Lows For jij 


^ Arrow life- Assurance " 

S0. Uxbridge Road. W32. 01-7489111 

'.w Me 

• •. 1 Rarclhys JMe Assur. Co.