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A No. 27,744 

Tuesday December 19 1978 





• ' -S? ►- 

off 7.0 


. Three more bombs were fond! 
yesterday, as the IRA’s mainland 
campaign continued. One was 
- defused in London’s West End 
and the others were found In 
Bristol aipd Southampton. . 

.. . The-diseOTeries eaiDe 24 hours 
v after bomb blasts in five provin- 
cial cities,', followed by two 
explosions m -/London early 

All the London bombs— at 
: High' 'Holborn. ' Great Russell 
' Street -.and Windmill .Street — 
• were left in ears which had been 
1 hired, hy means of a forged 
. driving licence. Only one person 
■was hurt - 

The bo rubs in. Bristol and 
: Southampton, two of .the cities 
bit on Sunday, were tra -a road 
tanker - and near ■ some . petrol 
pumps. Both were defused. 
News Analysis. Page 6 

• EQUITIES^ reined their 
down trend on doHaris weakness 
foil Owing news oftfieOPEC oil 
priee rise. FT! 36-sfeire index 
fell 7.0 to 474.0, the lotwiSt since 
■ November 21. Gold-Mines index 
rose 3.0 to 133.7. r V 

• GILTS: Shorts lossesaextendcd 
to A. Longs tradedTpioderateiy. 
Losses in high-eenpon- issues 
reached J. Government Securi- 
ties Index fell 0.24fo B&.5G. 

• GOLD rose $5^*6.^2122. 

S per fine ounce 

Iran mutiny, 

Abput . 25 Iranian ' soldiers 
mutineered during an anti-Shah 
demonstration in Tabriz, Iran. 
They laid down, their arms and 
allowed demonstrators to take 
over vehicles. Back Page - ’ • 


Jia aug sep net Tow vote 

t STERLING rose £& -cents 
to $2.0055. TracW-welghtcd 
index widened to 6j£# X63.2). 
Dollar’s depredation^veafcened 

. r,.- .1 

: i... 



Israel adamant 

Israel as refusing to resume 

^ . ■ .« -vuuw a miuraiuvutvmn 

g£ t# •* w> ¥ 

demands. The. Foreign Ministry, # WALL STREET wafr 
saiA taBcs -could -only resume on. at 785.08 near the close, 
r thd' * understanding that pro- KONG Hang Seng index 

; pbsafe hrought from ^Gairo by- 11.68 to 49&3& -PAKIS: 

Cyrus Vance. IkS. Secretary of * industrial Index dosjetl- 
-A. State, were unacceptable. Rage (754). FRANSTTJREC 
'..4 : • . • ■ " - - .*■* bank index f|dl Jo 

’ W : - (52130). -SSDA USE 

, Sect’s bequest • ... . EBpped- 2 .no so- _ 

. _ - The ... :r^i^S-;.Tempie "-.sec st, > » SHORT-TERM/ iateren^Tatcs 
- - involved • in- a . mas*. nmjKfor- .-w&Mfl fan during M^Awitb'- 
M0d*"pk^lpK ***** » ®mu2 toK-RaW fclow 
more than $7m (£3^m> to the ' -- ... . r . 


Dollar falls sharply 
after decision 

to raise oil price 


The dollar fell sharply in European foreign 
exchange markets yesterday following the week- 
end news of next year’s 14.5 per cent rise in oil 

The decision by the OPEC 
countries created general con- 
cern over the impact of in- 
creased prices on the already 
weak U.S. balance of payments, 

This brought the first sus- 
tained selling pressure since the 
U.S. administration announced 
its support package for the 
dollar at the beginning of last 

The pressure was met by 
widespread official support for 
the currency, in Europe and 
later in New York. But the 
dollar ended in London down by 
over 3i per cent on average, 
with the Bank of England's 
index of its value dropping from 
84.5 to S3. 4. 

The decline In the dollar was 
reflected in a sharp rise in the 
pound, which moved above the 
$2 level for the first time since 
the end of October. 

Wall Street was' also hit and 
shortly before the close the Dow 
Jones average bad fallen over 
20 points. 

Decline in the dollar also 
affected the price of gold. Early 
in the day, the gold market was 
uncertain ahead of today's U.S. 
gold auction. 

Later, however, the gold price 

rose sharply to touch $214. an 
ounce, ’ending in London at 
$2121, up by $5J from Friday's 

News of the OPEC decision 
has hit the U.S. currency at a 
difficult time. It had already 
been slipping gently in the 
markets last week, as the initial 
improvement brought about by 
the November measures began 
to wear off. 

The prospect of a rise in oil 
prices, {hough it might be 
expected to affect other large 
oil-importing countries such as 
West Germany and Japan, 
brought an apparently undis- 
criminating reaction against the 

The main response (o the 
OPEC announcement came over- 
night in Far Eastern markets. 
In European dealings, the value 
of the currency was quickly 
adjusted to the lower levels 
established previously, and 

Bank of England also reported 
though there was further steady to hav e intervened in support 
pressure dealers reported that o£ the dollar. At the end of 

it did not seem to be gathering 

As a result, the intervention 
by central banks was sufficient 
to bring some stability later in 
the day. 

trading, sterling stood at $2.0055 
for a gain oF just over 2.5 cents 
from Friday's $1.98. The sterl- 
ing index rose from 63.2 to 63.4. 

Money markets, Page 33, 
Lex. Back Page 

Mrs. Thatcher turns to 

mere than $7m the- 10 - 'cent bY the end ofjhe 

- Soviet Gdranmnlst .Party, ‘ year brokers'.Phiflips and Drew 
.7. accprdinff tT) a vrfil producoa at. /,-■ 

Page- 7 

at. in quest in. Guyana. 

■* ' -- -*v- •• . _ . . . _ 


. the Bankof^Engfemd to 

The - National Union:. of., persuade tkfc main banks to set 
Journalists and tbe L Newspaper up s ' Spedzl guarantee system 
Society will, meet today for to .''u'ndejSfrrite thC Joans they 
informal talks on - the. -pro’mv- make to-sroail companies (Back 
<?i«l Dewspapers strdke, Tiow iD Page').': The Bank 1 ms agreed 
' , : J — *■ " — “ • to- take responsibility for licens- 

ing money brokers, it wqs 

its third .weeJL Xas^SA 

Gandhi uproar 

There was- uproar inside' and 
outside India's Eswer House of 
parliament /as: "MPs ^debated 
wbethet. or., hot , Indira Gandhi 
Should be punished for breach 
OF privilege. MPa hurled abase 
in the House, and rioters back 

• BRITAIN has officially com- 
plained . to Norway about the 
■steep rise in development costs 
'oh the Anglo-Norwegian 
Statfjord oilfield. Back Page- 

:GHRYSLER UK . seems, set 

Iosses . 111 

Nrith "teafgas in tiie' streets. . o£ dama ®^5 


? rations- 

Page 4 

0.S. ‘a wolf' 

indnstriaiT dispute*. 
Back Page 

Taiwan President Chiang Ching- 
Kuo said' that by .opening 'its' 
fink - with ^China" tile U.S. ■ Bad 
^ushered a wolf into its living 
ibom" He also rejected an 
-3nvitation- to liold talks- with 
China. Page 3 

• UK ATOMIC Energy 
Authority’s £13m order for com- 
puters placed with International 
Computers could fall foul of the- 
new U.S. -Non-Proliferation Act 
Back Pa^e 

the Conservative leader, yester- 
day took refuge in a policy state- 
ment bn pay more than a year 
‘did, . in an attempt to show that 
■the Tories have a united front 
{.'an -the subject The statement 
.was one agreed by almost all 
.shades of opinion within the 

- /Speaking to party members at 
Haddington. West London, she 
.seemed to wont to kill any idea 
that she favoured a wages “ free- 
for-all,” while keeping open as 
iziahy options as possible. 

Rejecting “fixed, inflexible 
percentages," she said that a 
; Conservative Government would 
talk with ail the parties involved 
.to- get across the message that 
a “ solvent nation ” . could 

'operate only -within certain '* in- 
f: escapable financial constraints.” 

The party’s pay policy was 
■she reiterated, set out in The 
Right Approach to the Economy, 

J the Tory policy document pro- 
duced before last year’s party 
conference by a team of shadow 

Report: rejected. 

3W Association of District - 
Councils has told The Govern- 
ment at rejects all the main, 
recommendations : ~y regarding-, 
council lotteries an the Royal 
Commission oil '.Gambling’s 
report .The councils fear Gov- : 
e mm exit meddling * ill .the 
lotteries, which could raise £17m 
this year. Page 6 

• WORKERS . at Leyland 
Vehicles'' . Lancashire plants; 
rejected thn company’s ' pro-' 
posals on investment and other 
strategies, which they claim 
could mean big redundancies, 
and called for a meeting with 
'the full BL Board. 



Briefly . 

> i 

Lebanese' coastguards seized a 
ship carrying 2.75m contraband 
American cigarettes. 

Liverpool's new Royal hospital 
was hit wheii -200 ancillary 
workers walked; out aver 
remarks by a nnrmng sister.. 
Oldest Roman mosaic floor ever 
found in. London! hay- been, un- 
covered in the -City.: _Page 7 

• SOTHEBY’S pre-tax profits, 
rose to' £7.02m (£4.87m) on net' 
auction . sales of. £161 .Im 
.'(£123 .94m)'-" for the ■ year to 
. August SL Page 28 and Lex 

Strike by baggage handlers and 
refuellers grounded^ two-thirds 
of domestic flights -at 1 Sydney 
airport. . 

UK and Argentina be^n. talks 
3n Geneva over - the disputed 
Falkland Islands. 

• SONY CORP. net profit felI 26 
per cent to Y25.65bn ($131m) 
from Y34.64bn for- the year to 
October. 31. , This was because 
of the yen’s rise in value, the; 
company said. Sales expanded 
5.7 per. 1 cent to Y534bn C$2.7ba)- 
a new record. Page 32 
-» TRM3ENTROL more than 
-donbled pre-tax profits to 

£7.01m : {£3-4m) oh turnover: of 
£110m.= . (£70.4m) in the first 
nine months of this year. The 
group’s share of .Thistle Field 
oil production- made a pre-tak 
profit of £3,6m^ .. 

Page 28 


(Prices In pence unless" otherwise indicated) v >- 

Uoyds .Bank — 27S — S 

MET Furniture 168 — 6. : 

Metal Box .: 298 - 10 

Mills and Allen ...... 225 — 7 

Monk (A.) 901- 6* 

NatWest ^ 278 - 8 


Rank of Ireland 407- L 4* -T4 

Geznent-Rbadstouoe... 102 + : 6 
De Vere Hotels..:... 179 *4- 5 
Edwards (Louis G.), 25 +,4 

Hartley Ind,. . 33 -+ .3- 

Rowton Hotels ...^. 157- +.4 
Vaal Reeds _. £12 ■+.$ 

TVeasuiy 9ipc 1383 £88rfe— -fa 
Treasury lfijpe 034)5 £44i— } 
BAIs Defd. 283 - 4 

Costain iR.^.' .—i.i. .232 -? S 
Coartaulds 11 B — 4 : 

ERF:.;._.V.:_:;^.. m - -4. 
Ferr a nti 3S8 — T • 

GEC _ .,.:.... S28 “ 7- 
Guinness (A-> i58 — 4 

Hawker Siddele 


Perry (HLf ..; 111 - 5 

Racal Electronics ... 336 — 8 ; 
Keckitt and Cohnan 450 — 19. •' 

Sotheby ..;.'33S — 7 

Taylor Woodrow -....dOS — 12 . 

Thom Elect 356 — S .. . 

Turner and- Newall . 166 — A-'-v.' 
United Scientific — .257 — 5 . 

: Guthrie ,i..'.. -320 — 7 . . 

A^ton Mining .'.‘...i 62 — 14 
Cohzinc Riotinto ... 260 “ 10 . 
Northern Minhis - 1 65 — 17- - 

Westfield Minerals 1 230 - 50 • 




Ministers including Sir Keith 
Joseph, Sir Geoffrey Howe and 
Mr. James Prior. 

Showing its mixed authorship, 
it includes passages which 
appeal to monetarists, as well 
as phrases which suggest that 
the party accepts the inevita- 
bility of the Government's 
bccomins involved in the pay 

In view of the way the 
speech had been presented in 
advance as a major policy 
initiative, some Conservative 
MPs appeared disappointed by 
its contents. They asked why 
she had risked opening up old 
wounds within the party if she 
did not have anything new to 

Others defended her speech 
on the grounds that, if the 
party is to make the best use 
of the Government's embarrass- 
ment over pay policy, it must 
convince the public that it has 
a plausible policy of its own. 

It is essential, it is being said, 
for Mrs. Thatcher to kill the 

impression created by her tele- 
vision appearance during this 
year's party conference in 
Brighton, that she was in favour 
of a wages free-for-all. Opinion 
polls have shown that this .is 
not a popular stance and. in 
conference post-mortems, some 
shadow Ministers felt that the 
party’s electoral chances would 
be hampered if this impression 
was allowed to stand. 

Mrs. Thatcher said yesterday 
that the Tories shared the 
Government's aim of reducing 
inflation, but not its methods. 
Strict control of the money 
supply, together with firm 
management of Government 
expenditure, were important 
features of the party’s approach. 

She talked enigmatically 
about recognising the need in 
both public and private sectors 
for varied rates of pay. with 
increases which reflected supply 
aod demand, skills, effort, 
experience, risk and the em- 
ployers’ capacity to pay. 

Editorial comment. Page 14 

SE will probe Alginate deals 


THE LONDON Stock Exchange 
has launched a preliminary 
(-jiujuixy into share dealings in 
^Alginate, the seaweed-process- 
ing group which received a 
;i21jm bid last week from 
'.Merck, the U.S. pharmaceutical 

. y. The Stock Exchange also con- 
firmed that there was to be full- 
-scale investigation of the 
marked -drop in the price of. 
/Duhbee Combes Marx shares 
.before '.thg toy. group's interim 
results in October. 

' The preliminary inquiry into 
Alginate share dealings was 
prompted by a. sharp rise in the 
-group’s shares shortly before 
air announcement That a bid 

approach had been received 
from Merck. 

The Stock Exchange stressed 
that any sharp share-price move- 
ment was monitored by the 
Exchange “as a matter of 
routine.” It was too eariy to 
say whether Alginate would be 
the subject of a full investiga- 

According to Stock Exchange 
records no dealings at all in 
Alginate were marked between 
November 28 and December 7. 
On December 12, 24 hours 
before the bid appro aril 
announcement, the shares rose 
by 23p, to 255p. 

By the end of last week 
Algjnate’s shares bad risen to 
370p, compared with Merck's 

agreed bid price of 3S5p a 

The Stock Exchange's full 
investigation into Duobee 
Combex Marx share dealings 
follows the drop in the group’s 
share price before announce- 
ment of a £2. 96m first-half loss. 

In the month before the loss 
announcement Dun bee’s share 
price slipped 33p to 120p. This 
was despite .a previously 
optimistic statement on profits 
by Lord Westwood, Dunbee's 
chairman. . 

The share-price fall may have 
been influenced by a pessimistic 
report on the group from the 
stockbrokers Montagu Loebl 
Stanley before the interim state- 


v^uropeao. news 2-3 

rAmerican news 4 

-’-■Overseas news 3,4 

World .trade news 5 

-’UK news — general 6, 7 

’ ^ • ' — labour 8 

Technical page 9 

Management page 11 

Arts page : 13 

Leader page 14 

UK Companies 28-30 

Mining 30 

IntnL Companies 31-32 

Euromarkets 31 

Money and Exchanges 33 

World Markets 34 

Farming, raw materials ... 35 

UK stock market 36 


The. effects of the OPEC 
decision’ on . industry etc. 14 
This -Tear’s Christmas Food 
BUI .,.. 27 
Italy’s State. Enterprises: 
Choosing Its Leaders 2 

As EMS Launch Nears Gold 

Set. For Revival 3 

Banking In Iran: Caught 
In The Political Crossfire 4 
ASEAN Projects Move 
Slowly 5' 

Now Is The Time To Look 

To Your Cellars 12 

U.S. Loans To China: 
Banks Position Enhanced 31 

Canada 15-16 

-.-Appohnnwita ...... 

. Appoiftbnants . advt. 

. Bas» Rates ......... 


“ ;Crw*wofd 

Entuninnwitt Guido 
Eutopeon Opts. ... 
FP-Aefciarte* indices 








lathis ... — 27 

Lw - 40 

Lombard ...» 12 

Man and Matter* .4 14 

Racing . 12 

BalerMin 5 

Share Information 38-39 
Today's Event*-.— 27 

TV and Radio 12 

Unit Trusts 37 

Waattn r'.J. 40 

W orld . value of £ 33 

Bremar Holdings ... 14 

Crown House ...... 28 

Nortnu V 40 


Bartow Hand 32 

Dupla fntnl 33 

Kwik Sava Discount 29 
RHP. Umited. ... .. 29 

Sotheby Parka 
Barnet 29 

Stockholders Inv. ... 33 

No exchange 
controls on 


seek 2p 

Irish deals 



The dollar lost ground 
against the strong European 
currencies in spite of support 
in both West Germany and 
Switzerland. The Bundesbank 
was reported to have bought 
$4Sm at the Frankfurt market 
fixing, but the dollar dosed at 
DM 1.S5S5 compared with 
DM 1.8930 on Friday. 

: The pound reached the best 
level of around $2,008, with the 

cided not to impose exchange 
controls on capital transactions 
-with Ireland for the time being. 

The statement by the Trea- 
sury last night will end the con- 
fusion which has reigned since 
last Friday, when Ireland 
announced that her pound, un- 
like sterling, would be linked 
to other EEC currencies from 
January 1 in the proposed Euro- 
pean Monetary System. 

The British decision was 
principally influenced by Irish 
assurances about maintaining 
the present parity with sterling, 
and by imposition of exchange 
controls by >the Irish 

The Treasury said that the 
authorities would not extend 
exchange controls to Ireland 
“in the immediate future, but 
they will keep -the situation 
under continuous review.” 

The UK authorities “would be 
able to impose exchange con- 
trols at very short notice if 
necessary.” If this should be 
necessary full details would be 
provided at the time. 

“ Meanwhile it should not be 
assumed that if controls are 
extended. Irish securities held 
by British residents would 
attract the investment currency 

This is a clear warning that rf 
controls are extended there will 

not be windfall gains for those 
British residents who have 
invested in Irish securities, 
notably gilt-edged stock, on a 
large scale in recent months. _ 

There would probably be”a 
cut-off date perhaps the time of 
the Bremen , EEC Summit in 
early July, after which the wind- 
fall benefits of the premium 
could not be secured. 

The premium is the extra 
amount which British residents 
pay when buying foreign 
currency to purchase overseas 
assets and receive on their sale. 

The Treasury statement also 
specifically referred to the Irish 
Government’s “hope and 
expectation ” that the Irish 
pound would not in practice 
diverge from sterling, at least 
for some time. 

A key influence on the 
Treasury decisjon appears to 
have been the intention of the 
Central Bank of Ireland to 
continue to buy and sell Irish 
pounds and sterling for the 
time being on a one-for-one 
basis. Consequently there 
would be no change in the 
present parity. This applies 
to both forward and spot 

The other factor has been 
introduction by Ireland of 
Continued on Back Page 

Farming and raw materials. 
Page 35 

THE MAJOR oil companies 
are expected to press the 
Government for permission to 
put up the prices of their 
petrol and heavy fuels by be- 
tween 2p and 2.5p a gallon 
following the weekend deci- 
sion to raise oil prices. 

Major oil companies were 
saying yesterday that the 
alternative to an across the 
board increase in oil product 
prices would be a sleeper rise 
in petrol prices. Most of them 
arc anxious to spread the rises 
over a range of products, 
allowing them to recover 
depressed profit margins on 
such items: as heav;, fucis. 
They also see the OPEC oil 
increases as an opportunity 
to recoup increased internal 


Healey warning on 
dangers to EMS 

Ir applications to the Price 
Commission for an all-round 
increase fail, the main burden 
of the OPEC price vises will 
fall on the petrol market. Tilts 
would mean that the priee of 
a gallon *<[ funr-star petrol in 
the UK would go up by at 
least Ip over the next 10 

The oil companies aire wor- 
ried that the Government may 
turn down an across Lhe board 
rise In oil product prices 
because of its impact on the 
retail price index. An increase 
in petrol prices alone would 
have a less inflationary effect, 
but it could help to trigger off 
another pump price war. 



efforts to stabilise currencies 
through the planned European 
Monetary System conld not be 
made to work properly if the 
U.S. dollar came under serious 
pressure in the wake of the 
OPEC oil price decision. Mr. 
Denis Healey, Chancellor of the 
Exchequer, said yesterday. 

Count Otto Lambsdorff. the 
German Economics Minister, 
also warned after an EEC 
Finance Ministers meeting in 
Brussels that the OPEC deri- 
sion could have a bad effect on 
the dollar. 

Mr. Healey said that turbu- 
lence in the existing currency 
snake, the Common Market's 
joint float, over the past two 
years had been due mainly to 
flows of money out of dollars 
and into the D-Mark. 

He doubted whether the EMS, 
after it took effect on January 1. 
would be any more successful 
than the snake in discouraging 

such .inflows. It would not be 
possible to stabilise European 
currencies unless reasonable 
dollar stability was also assured. 

The Minis-cr decided that the 
parities at which participating 
currencies will enter the EMS 
will be based on market rates at 
the close of trading on Decem- 
ber 29.' 

Members of the snake— 
Germany, Denmark and the 
Benelux countries— have said 
they intend to keep their 
present relative parities inside 
the EMS. but there could clearly 
be some adjustment over the 
next. 10 days of other EEC 

The majority of ministers 
agreed, on the basis of a report 
by EEC central bank governors, 
that gold deposited with the 
European Monetary Co-opera- 
tion Fund in exchange for 
European currency units should 
be valued at 75 per cent of the 
free market price. 

In the past, high petrol 
prices in the UK have en- 
eouragetf chean imports from 
Russia and Eastern Europe. 
The major companies -ire now 
nrenarin* to out their plans 
to the Price Omm-srien hot 
no di^l«lon from tb-* commis- 
sion Is lifcojy to come •Is’-nttsh 
ur.«l the HPTjnnins ®f March 
at the enrii' ,c ti. 

!V«r. Anfhonv ’Vcdsrwood 
Bonn, tb* Enerir.- Secretary, 
saitl ve^ierdav the OPEC 
inereeses — which were 

greater than hart been 
pmectet! — were ** not good 
news Tor jobs, for trade or for 
the economy as a whole.” 

Effects on UK industries. 
Page 14 

£ iu New York 

— ; Dec. 15 

i Previous 

Snot I M.97B0.3790 ■'! S740-9760 
I month j 0.30-0.25 dis ‘0.4 2-O.S6 dis 
S months . l.OU-O.93 dis ' d(a 
12 months, 3.50-3.75 dis ,4.05 5.90 dis 

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Financial Times Tuesday Decemteil 9 3 V* 


n metal 



BONN — The West German 
steelworkers' union. IG-Metali. 
yesterday turned down officially 
the complex compromise deal, 
becked by an independent 
mediator, that hod offered the 
best hope yet of an early solu- 
tion to the stoppage in /he 
industry, now entering its 
fourth week. 

Herr Eugen Loderer, the IG- 
Metall president, said in a radio 
interview that the union re- 
mained ready to resume nego- 
tiations at any time. But he 
warned that he could sec no 
chance of a solution before 
Christinas. The union leader 
criticised the compromise pack- 
age on the grounds that fewer 
than half of the 200.000 steel- 
workers in the North Rhine- 
WestphaJia. Bremen end Osna- 
brueck regions would benefit 
from the proposed deal on 
shorter working hours. 

In the meantime, the 
mediator. Herr Friedhelm 
Fartbmajin, the North Rhine- 
Westphalia state Minister of 
Labour, announced that he was 
giving up his -efforts because he 
could see no possibility of 
further movement on either 

Herr Franz Wetsweiler, chair- 
man of the Iron and Steel 
Employers’ Association, warned 
that the -weekend compromise 
must be accepted as a whole, or 
not at all. N"W that the union 
had turned it down, “ every- 
thing is wide open again.' 1 he 

The compromise solution had 
seemed attractive because it 

offered both sides a face-saving 
wa your of an impasse. For the 
steel employers, it made a 
special case out of men work- 
ing “ swing ’’ shifts and other 
unsocial hours, without conced 
iog for theindustry as whole the 
IG-Metall claim for a general 
“ first step " towards a working 
week shorter than the present 
40 hours . 

Tailored closely to the steel 
industry's working conditions, 
it would have been difficult for 
the union to transfer it to the 
engineering sector, where its 
next major wage battle will be 
next major wage battle will be 

At tbe same time, IG-Metall 
could have claimed that such a 
first step had been taken, since 
a very substantial number of 
its members would benefit from 
the compromise proposals. The 
most important point would be 
to give the men working 
unsocial shifts four extra free 
shifts this year, and 6} days in 
1980. A 4 per cettt pay rise, 
longer holidays and a three-year 
basic wage contract were the 
other key elements. 

Despite the negative tone 
taken by all parties on Monday, 
many observers are still confi- 
dent that Herr Farthmann’s 
compromise will form the basis 
of an eventual deal. Both sides 
appeared last night to be wait- 
ing for the right psychological 
and political moment before 
making any further move. 

Some 80.000 men In the 
industry are either on strike or 
locked out by their employees. 

Getting Danish numbers 



COPENHAGEN — Tne intelli- 
gence service of a Warsaw Pact 
country has collected the 
Central Presorts Register (CPR) 
numbers of about a quarter of 
the Danish population, accord- 
ing to Berlin** ske Tidende, the 
Copenhagen newspaper. 

Everyone resident in Denmark 
has a CPR number which is used 
to keep a complete computerised 
register of the population. The 
numbers are used by the tax 
and car licence authorities, the 

health service. \nrt by banks and 
insurance companies. 

Tbe new*;;, ucr said that a 
?\ 7 ordic jnleillecnce service un- 

covered the Warsaw Part’s In- 
terest in CPR numbers after 
finding and analysing a collec- 
tion of reference books contain- 
ing the names of Danish per- 
sonalities. local government and 
health service personnel in an 
abandoned car on the Finnish- 
Swedlsh frontier. The reference 
books contained the CPR 
numbers written in the margin 
in invisible ink. 

Two members of Folketing 
f parliament ) have put down 
questions to the Minister of 
Justice asking him to provide 
further information on the news- 
paper claims. 

seeks to 

By David White 

PARIS — The cat-and-dog 
quarrels erupting around M. 
Jacques Chirac, leader of the 
Gaullist party, Rassembie- 
ment pour la Hepubllque 
(RPR) have grown so 
ferodoas that tbe hone the 
party has been picking with 
the Government has been for- 
gotten momentarily. 

At the weekend, SI. Chirac 
snarled baek at M. Alain 
Peyrefitte, the Justice 
Minister and one of the senior 
Gaullists in the centre-right 
Cabinet, who had written to 
RPR deputies to say that 
Bt Chirac has gone beyond 
the pale In accusing tbe 
Government of selling French 

M. Chirae urged him to do 
the decent thing and leave 
the party. 

The main centre of con- 
troversy. however, has shifted 
from the European question, 
on which M. Chirac lias con- 
siderable Gaollist backing and 
public anti-German sentiment 
to support him. to his own 
autocratic style of leadership. 


Line di tying ritual for choosing new 


ROME — “That’s all we things have been, if anything, state broadcasting authority, -become something of a symbol spring and with the basic 

M. Alexandre Sangninetti. a 
Gaullist heavyweight who 
withdrew his support from 
M. Chirac last week, returned 
to the fight on Sunday, 
describing the party organisa- 
tion as “ authoritarian, not to 
say fascist.” In a newspaper 
interview, he complained that 
some of the Gaullist move- 
ment’s most loyal members 
were condemned to silence. 

(HU j. the largest and probably 
the most influential corporation 
of this type. 

Apochryphal or otherwise. 

economy. The entanglements 
are epitomised by the existence 
of a separate Ministry of State 
Participations — in a sense the 

the outburst is revealing, hub of the wheel by which public call for the resignation, where. Behind those, in turn, flurry of meetings between Iftie 

L. i Has. a j - I. J m rtr_ n il *» ■ « - V&u. ol rdto tHoe at ttlP Y\rirtfnriol TimtfPr-hrnkPTft . ' Rllt 

Firstly, it indicates the extent political patronage is extended, of Sig. Boyer from the Minister are the rival, strategies at the principal power-brokers.- - But 

to which the selection of chief 
executives of bodies which are 
central to the country’s indus- 
trial well-being is dictated by 
political rather than managerial 
considerations. Secondly, it 
shows how the Left, either 
openly or covertly, joins in a 
process once held to be 
virtually the exclusive preserve 
of the Christian Democrats and 
their factions. 

At the best of times the ritual 
is less than edifying. This year 

deep into almost every nook of 
the economy. 

The spoils on this occasion 
include more than IRI, with its 
500, 000 employees and 
L14,000bu (£9.5bn) of declared 
turnover, and which probably 
exerts even greater influence in 
that it controls four of the 
country’s largest commercial 
banks, much of Italy’s steel and 
engineering industries, the 
state airline Alitalia, the tele- 
communications sector and the 

of State Participations, Sig.” heart of tbe party’s divisions— whatever solution is adopted 
Antonio Blsagtia. whether it should pursue _co- will then .have to run the 

Sig. Bisaglia’s demand was existence with the Communists parliamentary gauntlet j . 
based on tbe allegedly nn- (PCI) as favoured, by Sig. . For. Sig. Giulio Andreottvthe 
authorised involvement' of an Zaccagnini, ot whether the time prime MunstOT, The State con- 
IRI subsidiary, Condotte has come for a return to some terns bavje become yet another | 
d’Acqua, in a murky Iranian revamped version of' tbe issue • which - eould .precipitate 
properly deal but almost every- Gentrv-Left in alliance wife the the downfall oE-Bte Gottnunent 1 
one believes that the Minister Socialists. With a' threfe-ye&r economic 

was making a bold, if not The struggle over the recovery plan and the renegotia- 

desperate, gambit to secure the nominations is thus intimately, tion. of Wage contracts, already 
pattern of appointments -he involved with both tire queueing up for attention, it is 
wanted. manoeuvring before the Chris- an lsu& that could hardly:h&ve 

Unfortunately Sig. Boyer had Han Democrat congress in tile come at a worse time.-; • ... 

air talks 


By V/iUiam DuUforce 

The attacks of M. 
Sangninetti were aimed at tbe 
party's “’conform ism and 
immobility.’* On Europe, he 
had little with which to 
reproach M. Chirac, " barring 
some excesses.” M. Chirac’s 
controversial declarations, 
issued from a hospital bed at 
the beginning of the month. 
' were in line with his own 
attitudes and those of fiL 
Michel Debrc. that other 
Gaullist stalwart. 

- But If M. Sangninetti and 
M. Peyrcfltte diverged on the 
political Issue, they both 
accused M. Chirac of being 
manipulated by a sn>at! group 
of dose associates within tbe 
party. The Justice Minister 
referred to them as “ hidden 
personalities,” while A3. 
Sanguinetti dubbed them 
’’the Gang of Four." 

STOCKHOLM — Talks between 
Britain and the three Scandina- 
viuu countries on a new airline 
agreement resumed here yester- 
day with only 13 days to go to 
the expiry of the existing agree- 
ment. Both sides expressed 
hope that the remaining differ- 
ences would be settled before 
the end of the week. Failure 
would mean the end of 
scheduled airline services 
between Britain and Denmark. 
Norway and Sweden on 
January 1. 

1 Still to be agreed are the 
destinations for new North Sea 
routes and the rights of inde- 
pendent British airlines to a 
share in the traffic. The existing 
agreement was terminated by 
the Scandinavians last December 
after pressure from the British 
authorities to allow other air- 
lines to provide competition to 

E. Germany sets 



BERLIN — East Germany, in 
line with other Comecon 
countries, has lowered Its plan 
targets for next year, but not 
as sharply as in most of the 
other Communist States. 

East Germany’s national in- 
come. roughly equivalent to 
GNP In the West, should rise 
by 4.3 per cent one of the 
lowest targets in recent years 
This is largely due to much 
reduced target figures far 
agricultural output, mainly in 
animal production, of 1.3 per 
cent growth. The five-year plan 
bad stipulated 5.1 per cent 
growth in national income next 
year, and to achieve the overall 
five-year target East Germany’s 
national income would now have 
to rise an unlikely 8.5 per cent 
in 1980. 

The country's Finance Minister 
has disclosed that defence 
spending is to Increase from 
8.26bn East German Marks 
(£2.19bn) planned this year, to 

M&fibn next year, presumably 
the increase agreed at the 
Warsaw Pact meeting in Moscow 
late last month which Romania 
refused to endorse. 

• Labour productivity, & key 
element in achieving industrial 
growth, is expected to inorcase 
by 4.6 per cent next year cam- 
ln addition. East Germany has gated with a 5 per cent target 
annual spending of over M3hn * or ***** V ear 31111 ^ P* r 06111 
for its border troops and .ffowlh last year. Invest 

internal security which, to- *hents should increase by 5.6 

! gether with defence, made np cent next year compared 
. 11.6 per cent of tills year’s *nth the planned 2.1 per cent 
I niannoR st.ito huriaot this year and 5i4 per cent 

planned State budget. . '?**** **5*! 1{V _ 

Industrial production in East achieved in 1977. 

Germany should Increase by 5.5 - i . Retail trade turnover; an indi- 
per cent compared with 5.7 per ..cation of the level of private 
cent planned for. this year, consumption, is set to expand 
Actual industrial production by 4 per cent in 1979, the same 
went up 4 per cent last year as planned for this year- Tbe 
and 6.4 per cent In 1976. Herr 'target figure for 1970 is in line 
Erich Honecker. East Germany’s - with the five year plan. These 
President and Communist Party targets have been over-fulfilled: 
leader, told bis central com-: each year, as personal income 
mittee last week that East has risen faster than 1 planned. 
Germany had to achieve inter- No figures have been released 
national standards in its indus- on the growth planned for the 
trial production, or industry - net income of East Germans, 
would be “ organising a con- ' which was set at 4 per ^ent 
slant and costly lag.” this year. 

SA.S and British Airways, who | 
control about 80 per cent ( rpji- I 


Credit aid for Danishsljipowners 

Moscow on 

way is the Tour Saif 
er office buildings 

Madame Ffmrw-0 an* tit, Z>irtY/nrn/S|(i Louis* S. A. 

This is how Madame Fcrrero '-Gaggcro. Director of Sift Louise S.A., wich is 
the owner of the Tour Saifi, answers this question. 

You're hardly the first or the last to build 
an office block in Erussels. What's new 
about it? 

It's true there are a lot of office buil- 
dings in Brussels and many are of the 
highest standards. The Tour Saifi is one of 
them. It's probably the only first-class offi- 
ce building which leases office space in 
small units. If, for example, a large inter- 
national company wants to set up in 
Brussels but doesn’t want a large amount 
of office space, they will find in the Tour 
Saifi building the image they seek and the 
space they need. 

And if they then need to expand, it's 
done easily enough at the Tour Saifi. 
There's no need to move. There are 24 
floors and every level has been designed 
so that there’s practically no limit to space 
flexibility. Additional offices can be made 
available as the firm expands. 

controlled, allowing savings in time and 

There are three underground car parks 
plus a very pleasant restaurant and cafete- 

Soon every tenant will be provided with 
a magnetic key which wiQ give him perma- 
nent access to tbe tower even out of offi- 
ce hours. 

In the near future, a surveillance sys- 
tem will be installed. There will be cons- 
tant closed-circuit T.V. surveillance of the 
entrance hall, the parking area and the 

All this is part and parcel of the high- 
quality services available at the tower. 

You certainly emphasize the quality as- 
pect. Could you say a bit more about this? 

A part from flexible space, what will new 
tenants find here? 

The owners are on hand in the tower. 
A company which chooses to set up here 
doesn’t have to resort to a middleman but 
can directly contact the person with the _ 
power of decision, to solve planning pro- 
blems quickly without wasting time. 

Besides, new tenants have access to a 
whole range of services especially created 
for them. Let me explain. After a company 
has been set up, it takes some time before 
becoming fully optrationaJ.'Staff has to be 
recruited, a telex installed ... etc. The 
services we provide ensure a smooth start. 
They could use our secretarial service, 
our telex and also book hotel rooms, plane 
seats and car rental through us. Besides 
there are many more common facilities 
available to all tenants. 

The location of the building is an impor- 
tant element The Avenue Louise area is, 
I think, the most select in Brussels, both 
from the business and residential point of 

An area where many international com- 
panies are established, with many first- 
class hotels and restaurants. The motor- 
ways and airport are within easy reach. 

The tower's design is another impor- 
tant aspect. We wanted to put upa building 
that could be both attractive and functional 
and would blend in with its immediate 
surroundings. From this point of view, 
the Tout Saifi is a success. 

Like uhat for instance? 

Security and comfort are computer- 

A success for which you make the 
tenants pay? 

Not at alL 

The Tour Saifi is a high quality building 
but not a luxurious one. Everything is 
functional, nothing superfluous. The rent 
is very reasonable considering all the ser- 
vices available. 

The quality/price ratio is one of the 
most favourable in Brussels. 

For additional information, contact the 

Avenue Louise. 326 - Bie 3 
1050 Brussels 
Telex: 26227 

Telephone: 32-2/647.01.89 


COPENHAGEN— The A. P. with no repayment of principaL the Ship Credit Institute. 1 '. 
Moeller shipping and industrial Under the existing terms, AP adds: Mr. Christiansen 
group has placed an order for ships are financed on the same rejected a request made by. the 
four specialised container terms but over 10 years with shipowners last week for access 
vessels, understood to be of no grace period. ■ to take up foreign loans to fin- 

about 33.000 dwt each, with its Mr. Charles Hansen, leader of ance the . operation of th ei r 
subsidiary company, the Odense the shipyard workers’ union, vessels. The Minister told'. «L 
shipyard at Lindoe. said the new arrangement coufd questioner in the-FoIketing 

The announcement was made save up to 5,000 jobs in the that Denmark's monetary polfc. 
a decision by Mr. Arne shipyards and as many again cies do not permit private loans 

with sub-contractors. About * - - 


Christiansen. Minister of Com- 
merce, lo improve the terms 
on whieh vessels ordered by 
Danish owners at Danish yards 
can be financed. Under the new 
terms, up to SO per cent of the 
price of vessels can be financed 
through the Ship Credit Insti- 
tute at 8 per cent over 14 years 
with a four-year grace period 

11,000 people are employed 
directly in Danish shipyards. 

Mr. Christiansen is still con- 
sidering whether to offer aid 
to shipping companies, many 
of which are heading for an 
acute cash crisis if the Govern- 
ment does not offer them a 
moratorium on repayments to 

abroad for such purposes and 
that no exception could be 
made for shipowners. ' \ ■ 
He expected to produce pror 
posals early next year for 
tiding over shipowners for the 
next three to four years. A two* 
year moratorium oir existing 
debts to the Ship Credit Insti- 
tute is one possibility. 

Renault will 
lay off 

1.200 workers 

Renault, the French state- 
owned motor company, is to lay 
off 1.200 workers For a week 
at its Crand-Couronne com- 
ponents manufacturing plant 
near Rouen, because demand 
has been hit by a strike of 
customs officers in Iran, writes 
Terry Dodsworth in Paris. The 
company assembles its R-5 
model in Iran, using a large 
number of parts shipped from 
France. The lay-off will occur 
during the slack Christmas 
holiday period next week. 

Belgian leader goes on as 
caretaker after split poll 


Euratom loan 

Eu retain, the Common Market's 
atomic energy body, yesterday- 
announced a loan of $49.4m 
to the Italian electricity 
generating concern Ente 
Nazionale per 1’Energia 
Eiettrice, Reuter reports from 
Brussels. The money will 
finance construction of two new 
units generating 2.000 MW at 
the Montalto di Castro nuclear 
power station in Latlum. The 
loan is for 12 years at 9.75 per 
cent interest 

Portugal production 

Portugal's industrial index was 
down 25 per cent from July but 
up less than 1 per cent from the 
same month last year, according 
to the National Statistics 
Institute. AF-DJ reports from 

Ecevit in Sweden 

Turkish Prime Minister, began 
three-day official visit to 
Sweden yesterday as part of a 
European lour. Reuter reports 
from Stockholm. Mr. EceviL 
who earlier visited Norway and 
Belgium, is expected to discuss 
the ' purchase of a ?450m 
Swedish nuclear plant and 
Cyprus, where Sweden has a 
contingent as part of the Untied 
Nations peace-keeping force on 
the Island. Sweden, which in 
September rescheduled Turkish 
debts to it of 922.5m, has 
guaranteed credits for the 
nuclear deal providing Turkey 
signs the nuclear rxm-prollfera- 
uoc pact. 

BRUSSELS — Mr. Paul 
Van den Boeynan ts, the Belgian 
Prime Minister, yesterday sub- 
mitted his coalition Govern- 
ment's resignation to King 
Baudoin after tbe inconclusive 
general election on Sunday, but 
has been asked to continue in 
his caretaker capacity until a 
new administration can be 

In tbe wake of the election, 
which recorded only marginal 
shifts in support for Belgium’s 
myriad political groupings, it is 

Mr. Leu Tindemans, the CVP 
Prime . .Minister whose ; mid- 
October resignation over 
opposition to his plans foy- de- 
fusing .. the Flemish-WaMoon 
language war precipitated the 
election, and Mr. Van den 
Boeywuitt of the PSC, are both 
expected’ to use the minor 
advances made by the Social 
Christians to baric their own 
rival " to. the premier- 

Fintffcresiilts in jthe complex 

expected that several months cf proportional representation poll 
manoeuvring between party which, isf also electing Belgium’s 
leaders could elapse before a Senate and members of proyln- 
new coalition takes office. rial assemblies are not ejected 
The slight advances made bv u otU today. It is already cZeari 
both the Flemish CVP and however, that the Socialist par- 
francophone PSC win® of the ti es oh. .both sides of the laa- 
conservative Social Bloc could, svage- divide have lost some 
if anything, accentuate the ground, with The Socialists in 
problem of finding a new Prime francophone WaJIonia seeing: 
Minister acceptable to t be six . ^oir Lower House seats reduced 
parties that will probably make tfire^-to- 31/ thanks to gains 
up the coalition. Each wing fflade’iby "the small Communist 
gained one seat in the voting party/ 

fife.- C0 “ biMd The Flemish nationalist Vollt- 

strength in the 212-seat Lower sunie. party, saw' its strength 

• reduced hy six. seats to. 14. 

House to 82. 

Kreisky hints he may quit 

day hinted that he would Jult aa 

head of the government if his forward; * but no decision^ has 
Socialist Party lost its absolute been taken and there is plenty 

majority at general elections of time."- Plenty, 

planned for next October. _ v, . -.V.'*' 

saH he. did not Tegatfc ate 
Dr. Kreisky, whose party loss <rf ; three Sddalist seats’- ki- 
holds a three seat parlia- the Vienna -city cdtincfl, ©r-15e 
mentary majority, told a news country’s- rejection ■ of ' his 
conference that he could not govemihtat's nuplew energy; 
envisage leading a coalition poli^ /at © referendum in | 
government if the • Socialists November^ as Serious setbacks.- 
were defeated. • The 'government had Woa ^ah 

“I do not consider myself the heroic tattle against the .world 
right man for a coalition govern- econ0 ™ c . by .-keeping 

ment I do not want to return towerthanV anjr- 

to a system in which I started & Europe, " he 

my political career," he said. i : V.. 1 -; • 7 : 

^ ^ _ Unemp l g ymuat - In Austria’ is 

The Chancellor, who has led leas tiAn 2 tier cent ofthft yjoAL 
the Austrian Government for force. • " , ■ • . 

seven years, admitted publicly Reiittr HK' **-■. ; . ‘ v- 

. Bjr Tony Robinson •/ v ■ - 

Although the Soviet leafier- 
ship' has not yet made any j 
official Comment off the Siho. 
TJ.S. decision to establish 1 
diplomatic relations, Soviet 
media commentators . . have 
; underlined that the 

decision Itself was not-surp ris- 
ing, ; normalisation of rela- 
tions, if it' took an anti-Soviet 
bias, could be “ fraught with 
grave danger to ' peace 
between Asia and clsewhrre.” 

Moscow Radio, broadcasting 
.to a domestic. audience, noted 
that “ the Chinese authorities 
have of Ute stopped talking 
of their holy duly to liberate 
Taiwan: and now- they even 
speak of reaching a settle- 
ment with flbe fascists on the 
basis, of preserving: a capita- 
list system oh Qie island. It 
is not surprising 'that after 
such assurances, Washington 
has decided fir recognise the 
. present ‘GUpese . regime.” 

in its broadcasts to South- 
” East Asia, Moscow Radio com- 
mented that.: “the NAIM 
headquarters, regard as a 
natural ally Jt$ branch In the 
East, so to. say, and this too 
suits the imperialists who 
have an-, ambition to divide 
-the world' Into bices opposed 
ito eacfc .other. ^ In view of the 
rtf nation tarytetham, it added 
Pf creating a 
tripartite • military «ui 
. pelititet/AJasnce of the U.S., 
Japan Hhina cannot - but 
anmse^anxlety.” \ . ’ 
Significantlyv ^thfe Soviet 
media ..Ibis am.: quoted at 
length - a> statement' in the 
Japanese Communist Party 
. newspaper Akahata.Bdations 
between .'Moscow .and. the 
Japanese .fjcfemmfet Party 
cMtfed : down considerably 
daring-.- the -, unsuccessful 
negotiation* -off v a Soviet- 
-Japanese . ftienmhtp ■ ' treaty. 
Soviet refusal -4o\ hand back 
the four; .• Kvdfe . I riands 
occupied at.fbe end of the last 
war offended Jtiie; nationalist 
snsceptibaities of -tbe Com- 
moulst ./Party op well as the 
.Government;. Relations, have 
improved, Jtewever, sfnee the 

friendship •treaty' 
Akalmta,: -quoted at length 
by the SOvirt ncws: agency 
TASS, noted that “ the V.S. 
will continue-: ' maintain 
relatSOns vrith Taiwan and the 
possibility .‘. of U.S. Inter- 
ference’ will remain.” it 
acase d China qf planting to 
perpetuate " nnd . consolidate 
the Japanes^-U.S. tetiitary 
Mltonce, o£>sapport for the 
re4nrth of Japanese mili- 
tarism. the deployment of 
U-&- troops in Asia and the 
U.S. nuclear 'umbrella. 

need, for the managing director worse, thanks both to the RAt to those who oppose the prraeirt j^Hbcal dBemma feci 

to start thinkiug he has the importance of the prtees at There is also Ente Nazionale way, of doing- He. vras. . Osteosibly^ at, SLw?' 

right to be a candidate for stake and to the delicacy of ldrocarburi (£NZ>, the publicly .also the candidate, o£ Hu mmd^tsa re ontM:SWeun^, 

chairman.” one prominent left- Italy’s Internal situation, which owned oil and gas corporation* management staff Wira want though they would dOUDties 

wing Italian Deputy is reported has made It even more import- ENEL, which both pr oduce s and to. replace the outgoing like Sig. Boyer to stay on at 

to have said about the ant than usual for the polifci- supplies electricity, EFIM; an fibainman, Sig. Guaseppe IRI. ’ ¥ 

tow which has engulfed cians to get the right men in agency with, interests in the Petrtiti, not . wsth smae Over ENT. too/lhe ra^on^ 

manoeuvring for appointments the right places, arms industry and in various political nominee, but witt a -Me ; m dispute. The cureentiy 

to the top jobs at the largest The struggle is the most vivid manufacturing activities in the man tike Sig. Bpyer who under- favoured solution, is for- toe 
state-owned enterprises. example of the inextricable South, and INA, the state ihSur- stands IRI. •' ' ' ■ diairmanship to go- ,_to me 

He was referring to the links between politics and ance group. ' . . More pertinently, he has Sociabst-leanin£ a^d Socialist ^ 

attempt to oust Sig. Alberto industry in Italy. It is fought To make matters still worse; attracted the support^ or Party, candidate, Sip.. Giq.rgio 

Boyer, managing director of the out on the battlefield of the the spoils have distributed. Christian Democrat factions at Mazzantt, out tnere lS Soii raiK 

state conglomerate Istituto per public sector which accounts for id such a way 6s to respect the pdfis with Sig. Bisaglia_ a&d, in that the -present Incumbent, 

la Ricostrucione Industriale roughly 50 per cent of the current fragile balance of psatiariter, of the party s secre- sig. Pietro . Sette, should stay, 

political fozees. In the last few taty-general, Sig. Benigiio where he is. _= ■- ' • . . 'j' 1 '' 
days the pressures have become , Zaccagnini. Behind toe The whole Gordian knot is 
so great that the whole simm er, exchanges are the competing expected to be cut at a. Cabinet 
ing pot has boiled over, with a grand designs :Of who should go meeting this weeki after a final 



!SS$'£ 3 Sggk 

Athens bombs 
‘an attack ■’ 
on democracy’ 

By OurC rwoCorreipondait 
. 7 ATHENS .Greefcsfeoirity 
police -• are ' istveetigatibg a 
series; -o( more than 50 hoab" 
explosions Iff:' Which: seven 
people rwere ^uaxcd^oD.e of 
toem. ‘seriously;" late - oh Sua- 
.daycpi ^i t, ;< X " ^ 

v An - 1 anonymons -telephone 
caller teld ah ' Qpposititta - 
that t&eexploskms 
-were tile Work of tbe ^group 
Tor tatiomI"f«tora&a^ ,, ahd 
' were meant t&icpttHrieib orate 
r the . .death fOT r . . EVazfgdIos : 

' Mfiillos; * "idinter:r^illre 
super-infeadent . convicted of. 
torturing potitfeak prisoners 
'during, the Jhhta Vdays^ and 

wot by - nnkgoafTL ^ ^ftdn* ; 
two yeare .a^y. ■ ■. >: . 

'Ahdreas- l^paodrems, : 
the Opporitiiml^nM^id 
thcexploaonswerejtteant. iff 
anqcmiine- - the-. a nntfr y , < 

- ' and 

ortnsaL.the . .GWrepmiA si. 
P^hg 'too I'te&iefft wltii gutfb ■ 

• =:• • 




aa AwhltyB:- UJJi-inbjixWto 

'• "J;" y '■•'Sf.tiv:* 

. -r. •’ ■: - "-i.. 

■-J-TP --.'i. ‘ — - - 





'i. 7 w ■ 

' NEWS- ' 



Gold set for revival 


Taiwan ‘no 5 
to talks 
with China 


Japan balance of payments 
in deficit for second month 


re the 



sea is no 

This is what the captain sees from the bridge of 
an 1100-foot supertanker at sea. 


So is his responsibility. His ship is difficult 
to manoeuvre, slow to stop. Fully loaded and 
steaming at 16 knots, for example, it takes more 
than 20 minutes, travels more than three miles 
before stopping after the command for ail 
astern, full. And, as shipping lanes become more 
crowded and harbors more congested, his job ■ 
•—even' mariners job— becomes increasingly 

Introducing the Raytheon Collision 
Avoidance System. RAYCAS. for short. This 
computerized system detects and tracks up 

to 20 other ships simultaneously on an extra- 
bright, easily-read radar screen. The computer 
monitors the course and speed of each ship 
and automatically sounds an alarm if any are on 
a collision course. In addition. RAYCAS 
permits the captain to test possible manoeuvres 
electronically and see the effect on the radar 
screen before ordering a new course and speed. 

Now being introduced to the world 
maritime market, RAYCAS is the latest addition 
to Raytheon's line of radars, depth sounders, 
radiotelephones, and navigation aids— ail 
designed to increase safety at sea. 

Marine products are part of our electronics 
business, one of five basic business areas at 
Raytheon. The others are major appliances, 
energy services, educational publishing, 
and heavy construction equipment. In total, 
a large and growing company with an impressive 
record of performance. For the first nine 
months of 1978, sales were up 15%, earnings up 
36% — both reaching record levels for the 
period. For copies of our latest financial reports, 
contact any of the offices or companies listed 
below, or write: Raytheon Europe, 52, Route des 
Acacias. 1227 Geneva, Switzerland, or world- 
wide headquarters. Raytheon Company, 141 
Spring Street, Lexington, Mass., U.S.A. 02173. 


FOR 1NF(XIM/01(X4 ON RAYIBEON MARINE EUEX7TRONIC EQUIPIvnEKT: Raytheon Copenhagen. Siljangade 6, DK 2300, Copenhagen S, 
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. ■ >. 

. . ' THE ROLE of gold in - the. inter- : 

national monetary ‘system looks 
. set to take: on a hew. .lease of. 
life when die European mone- 
tary system (EMSy is launched 
oh January L. 

As. part, of' the soberae to 
create drawlpg rights oh a 
■ central fund, of EEC' reserves, 
-the Comm unity’s : central banks 
fro na "that .date - wil I be able to 
mobilise part, of their' 
reserves, valued at 4. market- 
. related- price, in order io settle 
transactions among themselves. 
Since the EEC countries own 
. about 40 per - cent of the' world’s 
monetary .gold, and ' only, three 
of them— France, ftaly-.^and the 
Netherlands, Jr- curreuilF. Value 
thek. hoIcMgs on the basis, of 
- the - market - rather than the 
much 'lower former “ official 
. price of $4^22 per ounce, the 
plan- has- caused some mis- . 
. givings among, opponents of 
gold remboetiratioji in the U.S. 
Treasury^ . 

;• The gold: arrangement is part 
of the scheme for stabilising 
exchange rates agreed-, at the 
EEC sumit earlier this month., 
and is_nteant_tp he one step 
• .towards -an eventual pooling of 
EEC reserves. - 

f The central hanks will deposit 
: 20 per cent of their- gold and 
foreign exchange reserves with 
the. •; Europ ean ; Monetary Co- 
operatiorj Fund (Fecom), 

I Britain- is expected; to< take 
!part in the reserves-depositing 
scheme, even though it is not 
• participating from the outset in 
the exchange rate system link- 
ing the other 'eight' members of 
*the Community. " 

\ The. deposits with Fecom will- 
Initially be on a three-monthly 
revolving swap basis, a com- 
promise. arrangement which 
avoids the thorny legal prob- 
lems which- would arise if the 
banks : permanently . transferred 
their- assets. 

- - ' /-• - . 

Sbn 'O ' 






1752 iW Moa hy 1 * 

01 * 20 - 2 ) 


In retnrn,-- the central banks 
will. receive 7 , an ‘equivalent 
amount of European Currency 
Units (ECUsJ. which can be 
drawn on to SetUe central bank 
transactions,. esp^cialTy inter- 
vention debts. 1 

Gold's role ih:^l- this . is sig- 
nificant for two reasons. First, 
the . valuation . of- a ' market- 
related price leaves the- U.S.— 
which has by far -the. world’s 
largest gold reserve?, and has 
in fact be«n 'auctioning off small 
amounts of them -to help defend 
the dollar — as the;, only impor- 
tant gold owner jri.;*the West 
still valuing its holdings purely 
on the basis of -the i bid official 
price. -i’ : - 

- Second, the elevation of gold 
among the NinetpfWmore active 
reserve role from^the largely 
passive -one it haji .played in 
recent years ' count; jencou : rage 
other countries to look again at 
gold as a store of jralue. to be 
held in their reserves- 
The exact valuation. procedure 

for gold used in the EMS will 
be worked out before the end 
of the month. The most likely 
formula Is a discount of 20 per 
cent to 25 per cent below the 
market price, to be reset every 
three months. Based on the 
current market price of about 
$210 per ounce, this would put 
a value of roughly $70bn on the 
Community’s 13,200 tonnes of 
gold, against aggregate foreign 
exchange holdings of some 

The discounting method 
follows the practice already 
adopted by Italy, which values 
its gold at 85 per cent of the 
London price 

France alone of the EEC 
members values its holdings at 
the actual market rate, which is 
worked out at six-monthly inter- 
vals. expressed as an average of 
the London fixings over the pre- 
vious three months. The 
Netherlands since August has 
used a basis of F] 7,500 per kilo 
to value its gold holdings, com- 

pared with the previous rate of 
just over F1 4.000 — at present 
exchange rates', this works out 
as a dollar price of $114 per 
ounce. • 

All the other EEC central 
banks up to now have stuck to 
a basis of $42.22 per ounce. But 
because- of tbe fail of the dollar 
against European currencies 
over the years since the valua- 
tion basis was fixed, the present 
dollar rate has in fact risen 
well above the $42.22 level for 
those countries which value 
their reserves in terms of 
national currencies: for West 
Germany, it is now around $63 
per ounce, for Belgium, around 

Together with the prospect 
that Switzerland, the fourth lar- 
gest gold holder in the West, 
will revalue its holdings at the 
end of the year to avoid the 
National Bank dosing with a 
loss, the EEC action can be 
viewed as a psychological sup- 
port for the gold price, which 
has fluctuated between S166 and 
$245 this year. One view being 
canvassed on the London mar- 
ket is that the rate used by the 
EEC will act as a nominal floor 
for the traded price of the 

Centra] banks, it is argued, 
will not want to see a fall in 
the gold price damaging tbe 
level of their reserves. This is 
undoubtedly true for France, 

However. Germany, with the 
largest gold reserves of the 
Nine, is likely to set the Com- 
munity rone as far as any 
defence of the gold price goes — 
and here the official word from 
the Bundesbank is that the valu- 
ation rate is of only minor sig- 
nificance. With foreign 
exchange reserves of $40bn. or 
roughly .half the Community’s 
total, Germany is never likely to 
be hard up for international 

Pay ^ Hioderatioaitressed by Bundesbank 


BONN — The continuation of. 
the upward swing of the West 
German economy .again depends 
heavily on /the wage increases 
negotiated . ;. this - . winter, .. the 
Bundesbank -writes., in its 
monthly economic report- 
Provided these ace-kept wllte 
in reasonably limits however, 
the West German- central bank 
appears still to be broadly opti- 
mistic that 1979 'will, /see con- 
tinued, steady growth. During 

'!> .' r ‘\ 

the third quarter .bhjiiis year, 
it reports that^feal gross 
national product was ftp by 1.5 
per cent from ffie -/previous 
quarter, aad 4 per cent higher 
than in the thirs quarter of 
1977. .Aj. i 

The Bundesbank m$m con- 
cern on the .dojgfistjd^fronl, 
apart from seeinjfv^wSption 
in wage bargaining^ gd<ai§ly lies 
in the realm of trumpy 
The report, wiftiem *ef« 
central 'bank fc&mj 

last week to cut the banks' re- 
discount quotas by DM 5bn, 
makes no secret of the authori- 
ties* concern at the steep rate of 
growth of the monetary aggre- 
gates in recent months. 

Thus MS* the broadly defined 
money supply, shot up between 
August and October et an 
adjusted annual rate of 18.5 per 
cent,, while the central bank 
money stock, tbe' indicator 
which the Bundesbank uses to 
s^t its annual money supply 

growth targets, is expected to 
have increased tills year by 11.5 
per cent compared to a maxi- 
mum S per cent set last January. 

In dwelling once more on its 
concern at the effects on the 
domestic money supply picture 
of a continuing large inflow of 
funds from abroad, the Bundesr' 
bank also appears to be serving 
warning that further touches on 
the brakes will not be slow in 
coming if the authorities think. 
■ they are needed. 

TAIPEI — Taiwan President 
Chiang Ching-Kuo yesterday 
made a stinging attack on the 
U.S. and angrily refused to 
negotiate with the Chinese Com- 
munists after Peking and 
Washington normalise relations 
on January 1. 

The President, speaking at a 
meeting of the ruling Sluamin- 
taing (Nationalist) part}', said 
the IT.S. had “ushered a wolf 
into its living room. This is 
certainly an unwise, horrible 

Speaking with bitterness 
about the U.S. decision to cut 
military and diplomatic ties 
with Taiwan. be added: 
” America has never severed its 
relations with a friendly coun- 
try. Now it has done that to 
tbe Republic of China (Taiwan). 
Shame on the U.S.” 

Premier Y. S. Sun told the 
meeting that Taiwan, which with 
500,000 troops has one of Asia's 
largest armies, has decided to 
increase military expenditure 
“ so that we can establish a self- 
sustaining defence industry.” 

A defence budget boost would 
help the Armed Forces to 
modernise their equipment, buy 
new armoury and “ strengthen 
our capability to make major 
weapons,” be said. 

U.S. Secretary of State 'Cyrus 
Vance said on Sunday the U.S. 
would continue to sell defensive 
weapuns to Taiwan. But a 
Nationalist Foreign Ministry 
spokesman noted yesterday that 
Chinese leader Hua Kun-Feng 
had strongly ub jeered to this. 

Taiwan, in conjunction with 
the American company North- 
rop, manufactures F-5E jet 
fighters and helicopters here. 
The Nationalists also make their 
own shells and they unveiled a 
Taiwanese surface • to - surface 
missile at recent National Day 

President Chiang said the 
normalisation plan ' was a grave 
setback iu Taiwan's 17m people. 

But the Nationalist leader, 
who was educated in the Soviet 
Union for 15 years. . told the 
party faithful that this would 
never prunipt him to make a 
deal with the Kremlin, informed 
sources said. 

After a weekend of angry 
demonstrations that left two U.S. 
servicemen slightly injured, 
dozens of windows smashed and 
several cars damaged, Taiwan 
went back to work yesterday. 
But the U.S. Embassy, where 
marines had used tear gas to 
clear out demonstrators, was 
closed so staff could clean -up. 


• TOKYO — Another record- 
outflow of long-term capital In 
tbe form of yen bonds by foreign 
governments and loans in 
November put Japan's overall 
balance of payments into 
deficit for the second consecu- 
tive month. the Finance 
Ministry said yesterday in a pre- 
liminary report. 

A decline in Government- 
inspired emergency imports, 
however, boosted the trade 

The overall balance of pay- 
ments which includes capital 
accounts, was in deficit by 
8270m ($83ra on a a adjusted 
basis), less than the October 
deficit of S971m (an adjusted 
deficit of $l-2bn). 

It was a sharp reversal from 
a year ago when a surplus of 
about Sl.Sbn was registered- 
The long-term capital account 
contributed heavily to this 
deficit, showing a record out- 
flow of Sl.Sbn compared with 
the previous monthly record 
set In October of $1.5S9bn. 

Japan's attempts to step up 

imports through special Govern- 
ment measures added only 
$425m to the import total last 
month, compared with more 
than $lbn in October. Officials 
at the Finance Ministry admit 
that the target of about $4bn 
in such ’imports will be un- 
reachable during the present 
fiscal year ending March 31, but 
note that higher imports of 
manufactured goods generally 
will serve to lessen the trade 
surpluses through the next few 

The trade surplus in Novem- 
ber rose to $1.430bn from 
$1.037bn in October, but was 
down from a surplus of $l.615bn 
in November 1977. (On an 
adjusted basis the surplus ex- 
panded to $1.61 Sbn from 
$83 3m.) 

Exports during the month 
were up 19 per cent from a 
year ago to $8.150bn (down 
S per cent on a yen basis) while 
imports gained 27 per cent to 
$6.720bn (down 1 per cent in 
yen terms). The import total 
was below the all-time high of 
$7.3bn set in October. Adjusted 

exports rose 4.5 per cent from 
October while imports fell 5.8 
per cent 

As a result the current 
account for November remained 
well below the monthly average 
so far this year of over $lbn. 
due to the emergency imports 
and a comparatively high 
deficit in the invisibles account. 
It stood at a surplus of $650m 
compared with a current 
account surplus of $3 64m in 

The Government has been 
trying to smooth out tbe im- 
balance in overall payments as 
a result of heavy trade sur- 
pluses by encouraging an out- 
flow of long-term capital in the 
form of loans and investments. 
In November, foreign govern- 
ments raised Y65bn in yen 
bonds in Tokyo, while the 
Government itself made a 
Y74.5bn contribution to the 
International Development 
Association fIDA). Non-resi- 
dents have also continued to be 
net sellers of Japanese 

Bhutto in court plea for justice 


RAWALPINDI— Mr. Zulfikar 
Alt Bhutto, Pakistan's con- 
demned former Prime Minister, 
emerged from his death cell in 
the district jail here yesterday 
to make a dramatic appearance 
before the Supreme Court hear- 
ing his appeal against execution. 

It was the first time Mr. 
Bhutto had been seen in public 
since March, when the Lahore 
High Court sentenced him to 
hang for ordering the murder 
of a political opponent. He 
looked drWn and had lost 
weight, hut he was able to speak 
for 90 minutes, largely without 
notes, and made telling political 

Mr. Bhutto challenged his 
accusers, alleging that the case 
was fabricated. “I don’t have to 
prove my innocence,” he 
declared. "They have to prove 
my guilt beyond reasonable 

He insisted he was not plead- 
ing for his life, saying: “I don’t 
want pity. I don't want riiercy. 
I want justice." He submitted 
that there had been a gross in- 
justice, which put the Dreyfus 
case into the shade, but added 
that he had full confidence in 
the Supreme Court 

He complained bitterly at the 
conditions he had suffered both 
in the Lahore Court and in the 
Lahore and Rawalpindi jails. 

"Believe me.” he said at one 
point, shaking with emotion, “X 
have been shabbily treated.” 
and he invoked help from above 
in his own Sindhi language. 

While Mr. Bhutto spoke, strict 
security precautions were in 
farce outside. Hundreds of 
armed - police were dutted 
around the town, and the road 
adjacent to the court was sealed 
off. Officials, diplomats, former 
ministers and Bhutto supporters 
crammed themselves into the 
hot, stuffy courtroom. 

All fel! into a hush when Mr. 
Bhutto appeared. The atmos- 
phere was electric as he began 
to speak. Mr. Bhutto said be 
felt a little dizzy, but he added 
that it was nice to see people 
again. He thanked the court 
for the opportunity to speak and 
promised not to waste its time. 
He had no intention of scan- 
dalising the country's institu- 
tions as there were "precious 
few left to scandalise." 

Mr. Bhutto appeared anxious 
to avoid bringing Ln the name of 
General Zia-uJ Haq, the man 

who- led the military coup which 
deposed him in July last year. 
But he enquired whether he 
could speak about Pakistan 
generally because there was a 
“barren void” in the country 
and no direction. This was not 

When he concluded he asked 
the seven judges how much 
time they would give him to 
elaborate. Mr. Anwar-ul Haq, 
the Chief Justice, said he could 
go on for as long as he had 
something to say relevant to his 
defence. Mr. Bhutto will there- 
fore re-appear in the court this 

Detainees released 

JAKARTA — Indonesia yester- 
day released 2,320 more 
political prisoners who had been 
held without trial for over 10 
years. They were arrested for 
alleged involvement in the 1965 
Communisi-backed coup attempt. 
Another 1.300 detainees are due 
to be released on December 29, 
bringing to 10.005 the total 
number set frc-e this year. 


Facial Times . 


Israel takes hard-line position 


TEL AVIV— Israel has no plans sionto recall the Israel military popularity had dropped almost occupied Wttt Bank has led to 
for breaking the deadlock in the delegation from 'Washington 20 per cent in the past . two the detention of an undisclosed 
peace negotiations with Egypt where it had negotiated with months to its lowest level since number of Palestinian students 
which have now reached an the Egyptians over Israel’s with- he assumed office. Less than by the military Government in 
impasse, a Foreign Ministry drawat from Sinai. half of- the population is now the past few days, 

spokesman said yesterday. Even though there have been satisfi . ed wjth & is performance They are apparently accused 

An official dose, to Mr. no negotiations in Washington f? Prime Minister, according to of leading street protests against 
Menahem Begin, the Prime during the past month, bring- “IP?* , _ _ recent land seizures by the 

The Jerusalem Post yester- Israeli authorities. Demonstra- 
day accused Mr. Begin of being tions in Hebron and Halbul 
“ disingenous " in claiming that during the past few- days were 
Israel was prepared to sign the only dispersed after the' army 
package of peace agreements fired tear gas at the stone-throw- 
worked nut a month ago. ing youths. 

The paper noted that “a Attempts by West Bank 
month ago the focal issue of residents to prevent legally the 
controversy was the accompany- Israeli seizure of their land 
ing letter which was to spell suffered a major setback yester- 

Minister, said that there would ing the team home is symbolic 
be no resumption of the peace of Israel’s decision to make no 
talks until Egypt withdraws its further effort at this stage to 
41 ridiculous ” demands. resolve the differences with 

Mr. Moshe Dayan, the Egypt over the terms a! a peace 

Foreign Minister, told his staff agreement 
yesterday morning that the Mr. Begin will report to the 
peace talks could only be Knesset today on the decision 

renewed on the dear under- to reject the Egyptian demands 

standing that the proposals and will seek the hacking of ^ tStoiiT date tor hokfin£ d^TheYTe IS *52 

.. the U.S. the House for the Governments elections for the Palestinian f.nnrt rflinntMi an s... 

which Mr. Cyrus Vance 

Secretary of State brought with position. r 
him from Cairn last week were He appeared to have wide- 

elections for the Palestinian Court rejected an application by 
autonomy.” It reminded its 41 farms from Anata. a village 
unareenrahie — _ rr — — readers that “the i Israeli Gov- north of Jerusalem, to stop the 

unacceptaoie. spread support m Parliament eminent had in effect rejected military Government exoro- 

though a public opinion poll to- it" — s — 1 * 

This hardline position was 
emphasised by Sunday’s deci- day reported that Mr, Begin’s 

priating over 400 acres of their 
Meanwhile, unrest on the land. 





NEW DELHI — Pandemonium 
broke out in India's Lower 
House of Parliament yesterday 
as UPs debated whether or not 
Mrs. Indira Gandhi, the former 
Prime Minister, should be 
punished for breach of parlia- 
mentary privilege. 

In the streets, police used tear 
gas to disperse supporters of 
Mrs. Gandhi who were demon- 
strating near the residence of 
Mr. Moranji Desai. the Prime 
Minister, and arrested more 
than 500 members of Mrs. 
Gandhi's wing of the Congress 

Six policemen were injured by 
stones hurled by the demon- 
strators in New Delhi and 
police arrested more than 100 
members of Mrs. Gandhi's party 
in Calcutta who were protesting 
against what they called the 
"fascist methods” of the Janata 

In the Lok Sabha (Lower 
House), opposition and Janata 
members hurled abuse at each 
other as the four-hour debate 
became bogged down in pro- 
cedural wrangles. 

Mr, Desai and Mr. C. M. 
Stephen, the opposition leader, 
agreed to extend the debate for 
another two hours today before 
a vote is taken, under which 
Mrs. Gandhi can be imprisoned, 
expelled from Parliament or 
suspended for the remaining 
two weeks of the current 


K. K. Sharma adds: Pressure 
on Mr. Desai is growing from 
within the Janata Party as well 
as from the opposition. Mrs. 
Gandhi's Congress (I) Party is 
considering moving a motion of 
no confidence in the Govern- 
ment and will make its decision 
in the light of the outcome ofl 
the present debate. 

Mrs. Gandhi’s party is trying 
to gain time while it waits for 
the second development that 
endangers the stability of the - 
Government and the unity of 
the Janata Party. That is the 
Threat by the former Home 
Minister, Mr. Charan Singh, to 
form his own party and to split 

put the country’s arrears in pay- 
ments for imports and remit- 
tances of profits and dividends 
at Kwacha 550m (£355m). 

The President also, announced 

‘War only solution,’ says Kaunda 


LUSAKA— President Kenneth search for a solution as neces- forces of the world” 

Kaunda yesterday set the seal sary. It also presumes Smith's Dealing with the economy, 
on Zambia’s disengagement continuation in some form as an President Kaunda acknowledged 
from the Anglo-American pro- integral part of the solution. I that the country’s economic 
posals for Rhodesia with the want to state categorically that crisis was “far from over." This 
declaration that not only was no attempt to solve the was mainly owing to continuing 
Mr. Ian Smith’s removal a pre- Rhodesian crisis which is not transport problems which had 
condition to any settlement founded, on a clear rejection led to a worsening of external 

efforts, but also that the only and removal of Smith has any indebtedness 

solution was war. chance of succeeding.” Mining sources said last week 

Speaking at the opening of The crisis would only be 11181 80 -000 tonnes of copper 

the first session of the fourth resolved by war, he declared, WCfe hmd tip, while bankers 

national assembly today, Presi- and warned that the deteriora- 
dent Kaunda noted that Zambia tion in southern Africa “ has 
had initially supported the now reached the point at which 
Anglo-Amercain initiative. How- it is imperative for Zambia to 
ever, he continued, “nothing arm to defend herself." 

has happened in the 15 months Reaffirming Zambia’s support the reorganisation of the Zambia 
since the initiative began to of the Rhodesian guerrilla Industrial and Mining Cor- 
convince Zambia that either this alliance, the Patriotic Front, poration Limited *(Zimco), the 
initiative is serious or correctly and the South "West Africa 100 per cent state-owned hold- 
motivated, or has any chance at People's Organisation ing company which directly or 

all.” (SWAPO), the President indirectly controls' over 90 

The initiative, he said, pledged that his government businesses. The measures were 
“accepts the active partiripa- “will fight alongside the main- designed to improve' Zimco's 
tion of lan Smith himself in the stream of the progressive economic performance, he said. 

Rhodesia counts oil attack costs 


SALISBURY— Now that Rhode- already had two salutary effects, which, they say, is bound to 
slan and South African firemen, so far as the transitional have an adverse impact on 
have finally put out the six-day Government is concerned. It foreign currency allocations in 
oil fire caused by nationalist has eliminated the sense of com- the second quarter of 1979. 
guerrillas, businessmen here are Ptocency which had become so First quarter currency alloc a- 
starting to count the economic apparent In urban areas, tions, announced last week,- 

cost of the blaze There is little Rural areas, by contrast are far following a significant improve-'' 

doubt that the destruction of the more realistic about the security ment in the final quarter of. 

28 fuel tanks at the Salisbury situation. J.978. But the fire has 

oil storage depot is easily the Secondly, it has led to a apparently put paid to hopes 
most severe single Wow that the marked tightening up in urban that this allocation improve- 
guerrlllas have struck against security . , . °? v win be matatataed m the 

the Rhodesian economy in the P attem of Woolworths bomb second quarter and it now 
six-year-old- war. attack in August 1977 which seems possible that allocations 

„;i AAnmnnifini, 3150 brought about a security show a sm 11 overfall increase. 

damp-down. will have to be reduced, especi- 

prtttoheddnc* 1965 it is taSS It has been calculated that ally in the light of the OPEC 
ribleto ^5SteSexar?ort ^ “tanks been filled. announced at 

to the Rhodesian economy of the “d had .all the oil been losL- the. weekend, 
guerrilla attack. However, an * be maximum oil loss would it has been estimated that it 
oil industry informant yesterday “ ave been -lm gallons. This, wiif take at least eight months 
estimated the loss at about four J ow ? ver - ls understood to be t0 rebuild the oil storage depot 
days consumption. Rhodesia is far JP ^°^ ss £he ®5 , * i0ss : Apparently much of this can be 
understood to maintain oil 86 t ~ e J 8 !** 5 ® 'T. ere not * u ;* 8n “' done using- domestic materials 
stocks of between three and mOSt ot ffie was not ,ost - and domestic contractors — who 
four weeks, so that the attack , However, no-one here is will- are heavily under-employed at 
while obviously serious is far ing to minimise the foreign present anyway— thus giving 
from being the knockout blow exchange cost of the fire, the construction and steel and 
some have suggested. Officials here put the cost of engineering industries a much- 

The successful attack has lost oil at upwards of £10ra needed boost. 


Caught in the political crossfire 


THE BURNT-OUT shells of 4 00 Goholam Keza Azhari, the These include delays in the usual to provide extra personal 
banks now stand gaunt and Prime Minister, had succeeded clearing of cheques, which now liquidity, 
empty in the streets of Tehran, in scaring some of the strikers take at least 10 days instead of In the past the Central Bank 
Those which have survived un- back to work by threatening to the two days pre%nously of Iran has acted to prevent 
damaged in the Iranian capital dismiss them and to stop the required. Customers are allowed failures of banks, big or small 
huddle behind wooden screens pay of employees operating a to withdraw only a quota and Earlier this year when Shi'a 
and steel mesh. go-slow. some accounts were temporarily Moslems started withdrawals 

As the victims of the arson One of the most debilitating frozen. from Bank Saderat because they 

and violence which has swept strikes against the Shah has More optimistically, the crisis dJd not tike its mam shareholder 
through the main cities over .the been among the approximately has come when Iran’s external — member of the Bahai sect- 
past couple of months they are 400 graduate professionals in debt position remains low, at the Central Bank moved in its 
vivid reminders that the jubilant the Central Bank's statistics $lGbn, because for two years own funds pending the working 
advertising jargon once used, department Like the oil field the Central Bank h*s been out of a political solution, 
often by the banks themselves, engineers, they are in a Rood enforcing a tight monetary _ To ease the crisis, the Central 
to describe Iran's potential, is position to do something about policy, 
unlikely to come true. 

Yet the overall picture re- 
mains depressing. The strike in 
the oilfields has been losing the 
country $60m a day in income. 

The new budget is likely to 
cut $lbn from the development 
budget. At the same time 
Ayatollah Khomeini, the chief 
focus for opposition to the 
Shah, increasingly has been 
emphasising the role of the 
strikers in tbe oilfields in bis 
battle against the Shah. 

Iran’s highjy-prolitable -banking sector has been 
hit hard by political upheavals. Many banks have 
been physically gutted, business has been 
disrupted, profits are down and there are fears 
that bankruptcies and failures could follow. 

Bank released an extra 120bn 

their hard line against the Shah But several banks are vulner- rials (Sl.Tbn) into the system 

because they are middle-class able after being hit badly in more than a month ago, and has 

and educated.' recent years by borrowing from been printing a mass oF new 

This and other actions has abroad when the Government notes to replace those burnt or 

- - - - withdrawn. 

The inflationary impact of 
such a policy is accepted but 
as one economist put it, “The 
inflation rate which Iran is de- 
veloping from the strike- 
appeasing wage increase. local 
shortages and upset in the trade 
balance will be much greater 

meant that the banking systim had put limits on domestic ti**n mere printing of extra 
has been almost shut down for borrowing. They suffered when notes, one analyst with a good 

It is a significant indication several weeks. New notes were the dollar fell and took with it prediction track record has 

of Khomeini’s influence that bis not getting through from the the rial. * u Jn “ a ^ 0n ra te, 

recent call from exile near Central Bank or could not be The banking world is unlikely !/' „ 15 h s raT1 

Paris for a second strike in the obtained from local branches, to remain the same when the “f ? e « SSP. mU ° e over per 

oilfields was answered imme- Imports were disrupted because political crisis ends. Of the big cen . I n •‘® a . r - 

diately by the oilworkers. Last only a fraction of staff in the three, with 65 per cent of iL JI 15 1 ver ^ different 

Saturday he said: “It is a reli- Central Bank who collected the deposits. Bank Melli is Govern- Spit f™®."'’® years ago. 

Sinus duty for strikers to con- official 1 per cent of the value ment-owned and serves as the 

tinue with their strikes and not on letters of credit were work- Government's own bank: the * i? 

to allow the oil to he taken out ing properly. Transfers abroad, former major shareholders of 
of the country.” He sanctioned were also upset by new regula- Bank Saderat a private concern, 

payment to strikers from re- tions designed to ensure rich is in jail awaiting trial for t JP!rE 0 ,i2!? 5f" 

Iranians did „_j » u e—.i, i. ,Il S stock in uie already o ti- 

ll gious funds. 

not transfer corruption; and Bank Sepah is 

ier countries. hir the Armv Pension pre “?“ ' snd and P"PCrty 

Such dismal prognostications fortunes to other countries, owned by the Army Pension £, arkeL 

are sometimes belied by inter- 
mittant returns to normality. 
Last weekend was relatively 
tranquil compared with the 
large-scale demonstrations of 

Central Bank strikers alleged iund. 
they had transferred $2.4bn 
abroad in September and 
October alone. 

Foreign banks which have 
Along with some medium formed partnerships in Iran 

banks such as Bank Omran, with stakes of up to 35 per cent 

owned by the Shah's trust fund, are also worried about how to 

Observers of Iran's highly, the Pahlavi Foundation, they weather the crisis, if oil pro- 

December 10 and 11. After the profitable and fast-growing have found themselves facing auction remains disrupted for 

Moslem holiday on Friday the banking system consider bank attacks from two sides. The mob long even the *0 banks which 

surviving hanks opened up failures or bankruptcies may has burnt them because they only have representative 

again and some of the shops occur. But measures which they represent the Shah and the offices in Tehran — arranging 

were once again in business. have been forced to adopt army, while their depositors, it loans and looking for develop- 

It could even be that the recently have shored them up is thought, have sought to with- ment business— may also re- 

military Government of General lor a few months. draw much greater sums than consider their position. 

pledge on 
oil output 

£1/ James Buxton 

ABU DHABI — Saudi 
Arabia’s determination to stick 
to its annual production ceiling 
of S.3m barrels a day is seen 
here as ensuring that OPEC 
maintains the series of price 
increases amounting to 14.5 per 
cent which it is to implement in 
stages next year. 

Sheikh Ahmed Zaki Yamani, 
the Saudi Oil Minister, said that 
Saudi Arabia would not lift its 
production limits to cope with 
the additional demands caused 
by the cutback in Iranian oil out- 
put due to strikes. Only if tbo 
cutback continues for a long 
time and worsened — which he 
did not expect— would a tem- 
porary lifting of the ceiling 
even be considered. 

Though Saudi production is 
currently running at well over 
8.5m barrels a day — Sheikh 
Yamani said that on one day 
earlier this month, output had 
reached 12.85m barrels — Saudi 
output would keep within the 
production ceiling on an annual 
basis because of the low output 
earlier in the year. 

Confirming that Saudi Arabia 
would continue to play tbe role 
of the swing producer, raising 
or lowering its production to 
enable OPEC to function as a 
cartel. Sheikh Yamani also 
said that Saudi Arabia would 
absorb the cut in demand that 
would occur if there were a 
surplus next year. “ If there is 
a surplus the Saudis will. bear 
the burden alone.” he said. 

The 13 OPEC countries are 
to raise prices by 5 per cent 
on January 1, by 3.8 per cent 
on April J. by 2.29 per rent on 
July 1 and 2.69 per cent 
on October 1, taking tbe 
price of the benchmark 
Arabian light 'crude from 
$12.70 to $14.54 by the fourth 
quarter of 1979. The average 
price for the year is $13.97, 
malting an average increase of 
10 per cent The size of the in- 
crease is made possible by the 
additional tightness of the oil 
market due to the Iran cutback. 

The other major outcome of 
the two-day meeting here was 
the decision to widen the spread 
between the prices of light 
crude and the less saleable 
heavier varieties. Saudi Arabia 
had earlier indicated its 
intention of doing this to 
encourage sales of its heavier 
erodes and to adjust its output 
of light and heavier crudes to 
reflect the composition of its 

Saudi Arabia is to increase 
the price of its light Berri crude 
while also reducing the price 
of its heavier crudes — Arabian 
Medium and Arabian heavy — 
before applying tbe quarterly 
percentage increases. Dr. Mana 
Oteiba, the United Arab 
Emirates Oil Minister, said Abu 
Dhabi was increasing the 
premium on its light crudes by 
between 5 and 15 cents. 

Conference sources said that 
the Gulf , heavy crude producers 
would meet informally in the 
next few weeks, so that Iran 
and Kuwait can bring their 
price differentials into line with 
those being set by Saudi Arabia 
and Abu Dhabi. 



BY -/UJtEK MARTIN . / : 

WASHINGTON’ - Congres-. ' admit.that Conpss was toW of 
sionaL .opponents of the nOr- thfe: normalisation negotiations . b* ML- OT 

mafisation of Sino-American jtttthflfofe they were announced Economic,: '.•«*“* aad cultural 
relations are likely to argue that list Friday. The mainjMjon . matter* - 

President Jimmy Carter ignored advanced was the need .'.i£58P?! 

a specific Senate resolution the taBts secret Capitol Hill is a idydvej 
requiring prior consultation notorious place, for leaks,; it is, 

with Congress before altering, generally agreed. ■ . WfS?, ; rtfS.. 

U.S. policy towards Taiwan. Nonetheless some Senate far CUmi., AbSe4ce of uuS 

They also may seek to assert feathers may be ruffled by the 
the Senate’s powers over the President’s by-passing ‘ of the 

President’s right to terminate legislative branch. Over, the last. jj* /“EpOJL S&n 

treaties to complement the - fcw yfeirs. Congress m a number , patedT sUTge^.iO Snio^Atnertcan 
existing authority of ratifying of. ways has inserted itself into -trade. 

new international agreements. ' the foreign policy arena after .« is- hard at titiS Sta g ey 
This extension of Congres- the e&tesses of the executive in. gauge thfr mood of QMgtfess, 
sional powers apparently has South-East Asia and elsewhere, which, is • in- reee», -an..rm^ 
never been tested. Earlier this ThffAdrainistfation/ contends normatisation of rdatiODgw^ 
year a leading critic of recogni- that 'Congress will get its say in Pekrog. Tbe • AwniitiSTOMni 
tion of Peking circulated .a -the r; : .’normalisation ' • PTpefi^; firito-^belteyes that it. c»n tort 

motion to this effect but inltiaUy when the Senate votes ^ck »e In^obleoTislaught^ 

received minimal support from fo ttefirm the appointment of -tra i dJ4 r.* 

his colleagues. whoever becomes the U.S, (led by mett tike Senator Golg. 

However the Senate did pass/ ambassador w Peking {probably water>, : but, vriti i z0 rtMv 
with no opposition, a resolution Jfr.:£eonard Woodcock, current . 'senators ■ 'faiOTE"- dffiW . - h«t~- 
put forward by Senator Clifford- heatf-of the mission there). , • month, there- is -* greate r; tnim- 
Case, the New Jersey Republi- - ‘Moreover, conscious of. usual element ot unctfratn^yin, 
can who will not be returning Congressional sensibilities, . the~ such -political calculatio ns-^. - . : 
next year, requiring the Presi- .Administration is also making Mu^t wul. depend ffiertrort^- 
dent to consult Congress before- the -point that although it' is on the, way -in- Which .me WMie 
altering the status of U.S. ties abrogating the 1954 ' fidtual debate _ is -couched apd pn the 
with Taiwan. Defence Treaty ' with Taiwan issues on which key battles art.' 

White House aides freely ..something like 60 other treaty- -fought . 

Union refused injunction 
over Carter pay policy 


NEW YORK — A West- Stability must hold a hearing da 
Coast paperworkers 1 union' 7 it immediately. . \ 

which attracted nationwide' . Tbe union’s action arises. out 
publicity by challenging the' 'of ^five-month long pay dispute, 
legality of - President Carter’s between its 14,000 mfembws and 
wage and price guidelines in the a number of West Coast era- 
courts, has suffered a rebuff, but plovers. Tbe union, which 
could still get the pay rise it wants a pay rise of about 10.5 
wants. . • per rc.ent a year over the next 

The judge in the federal two.; years, settled with some 
court in Portland. Orepnn, employers before - the wage 
denied a request by the union guidelines were brought out on 
for a preliminary injunction.' October 1. They bow afgue-tbat 
barring the Government, from ' -the rest of their wotkers should 
enforcing the guidelines, on the 'he allowed to settle on similar 

OPEC blow to 
Wall Street 

By David Las cel I es 

NEW YORK — Wall Street 
reacted with swift and deep 
pessimism today to OPEC's 
decision to raise oil prices by 
14.5 per cent. 

The New York stock 
exchange slumped more than 
ten points within half an hour 
of opening, pushing the Dow 
Jones index below the 800 level 
and wiping out most of the 
market’s gains since President 
Carter announced his dollar 
rescue package last month. 

Bond prices also plummeted 
as investors assessed the effect 
of dearer oil on inflation. 

OPEC's decision is expected 
to odd about three cents a 
gallon to ihe price of petrol, an 
increase of about 5 per cent 
But the impact will, of course 
be more broadly felt because 
of industiy's increased pro- 
duction costs. 

According to Mr. James 
SchlesingCr. Secretary lor 
Energy, this will push next 
year’s inflation rate up by about 
0.5 per cent. Both he and Mr. 
Alfred Kabo, the Adminis- 
tration's chief inflation-fighter, 
expressed surprise and dismay 
at the size of the increase, and 
Mr. Schleslngcr added an 
appeal to OPEC to reconsider 
its action. 

But though a rise in the 
price of ail is expected to add 
to industry’s difficulty in 
meeting Mr. Carter’s wage and 
price guidelines, it is likely to 
be greeted with satisfaction by 
the U.S. oil industry, which is 
pressing for higher returns on 
the domestic market. 

U.S. oilmen arc currently 
trying to persuade Mr. Cnrter 
to relax internal price controls 
on ail and oil products when 
energy legislation gives bim the 
option to do this next May. 
Effects of OPEC Page 14 

Takeover investigated 

African Reserve Bank has an- 
nounced that it is investigating 
the takeover of the printing 
aud publishing group, Hortors, 
by South African businessmen 
backed by the formur Depart- 
ment of Information. 

The takeover, by Mr, David 
Abramson and Mr. Stuart Pegg, 
was financed with foreign loans 
guaranteed by the former 
department, according to state- 
ments by Mr. Pegg. 

grounds that the uni on had so. -te rms , even Though these would. ^ 
far failed to exhaust administra- breach the guidelines. - _ ... 
tive remedies for its grievance.- • deprived of the temporary 
The union, the Association of injunction they- wanted," the 1 
Western Pulp and Paper union’s best course now is -to 
Workers, had argued that- Mr.- seek exemption from the guide-' 
Carter’s voluntary controls lines on two possible, grounds. -j 
were really mandatory odes . One is the “ tandem -relation- J 
which he had no authority to ship.” argument which days that 
impose. But the judge did not . workers may get pre-guideline 
consider the potentially for- pay rises if co-workets got these 
reaching implications of this -terms earlier. -The other is. that 
argument. He ruled that if the 11 gross inequity exists between 
union had a grievance, the workers whd settled earlier and 
Council on Wage and Price those who 4id not- 


SheD leads group in 
Canada oil sands plaftt 

for completion of late 1985 or 
early 1988. ., r r \ :•••’ 
Shell Canada Resources-, has 
a 25 per cfent interest in 'ibe 
project Shell Explorer limited 


CALGARY — Plans for the 
construction of Canada's third 
oil sands plant, including a new 
town, have been announced by 
a consortium of nine oil com- 
panies headed by Shell Canada has 20 per cept Amoco Canada 
Resources Limited. Petroleum Company Limited lty 

Mr. D. W. Menzel, senior vice- per cent; and Pacific Petroleum 
president of Shell Canada Re- Limited (recently acquired . by 
sources, and Mr. J. E. Czaja. Petrol Canada, the federal oil 
first president of mining dc- company) .9 per cent, 
velopment. said an application Chevron Standard Limited, 
to build the $C4.9bn (£2.2bn) Gulf Canada Limited, Hudson's 
plant, with a capacity of 140.000 Bay Oil and Gas Company 
barrels a day of synthetic oil. Limited and' Petrofina Canada 
have been sent to Alberta's Limited each, have 8. per ceht,- 
Energy Board. while Dome Petroleum Limited 

They told reporters the board has 4 per cent 
is expected to conduct heart lies Mr. Menzel said total Cana- 
into tiie proposal early in 1979. dian involvement in tho venture 
probably during the second would be about 2T per cent, 
quarter. If the board approves which he described « u s coo* 
the oil sands project, a general siderable , amount , in such a 
contractor would be chosen in large project.” Ateands would 
late 1979 and site preparation be on a ' 43,000-3 ere site 64. 
would start kilometres - nortb-easf of Fort 

The plant would employ 2,800 McMurray, .Alberta.- and would 
people. . Construction would be the third oil sands plant in 
start in 1981, with a target date the region.' 

Britain meets Argentina on 

future of Falkland Islands 

. . .. 

GENEVA — Britain and Argentina and tbe Falkland*, a 
Argentina resumed talks yoster- predominantly sheep - grazing 
day over the future of the territory;. of 4,B1_8_ square. miles, 
Falkland Islands, the British with a population of just over 
colony 300 miles east of the 2.000. The tost round of talks 

funds left to 
Soviet Umpn 

IN A curious new twist tp jge- 
jonest&wii . tragedy, Guyanese' 

officials .- have revealed tittiT 
letters bequeathing mort tbafl 
U.S47th In people’s -.Tempte - 
fundsio the Soriet Government/ 
were smuggled out of the^tom- 
mai?& .hours before last month’s - 
'mas:"4nideidev'-''Oavid" 'JBucfajm.. 
writes irom Washington: •* . 

The lefterfc addreroed/to-the 
Soviet- . Consul r.43ea*raL in- 
Georgetown,' requested (fistrfbu-- 
tion of •. the.:-.. money i.r.fck; 
^oppressed. peddles aUnv^tfae. . 
world. 1 * -. They were - released-, 
during the . official Guy^tese in- 
quest into toe deaths of mare 
than ft)0 members of the cult. . 

The/ instructions listed toe ■ 
cult’s b a ak * accounts In Vehc- - 
-zueto- and-at branches of Syriss 
banks uk Panama'. It appears' 
that - Soviet ;, officials never 
received ^ fee .letters, and 
Guyanese Jbffidals could not say 
who ' would- finally . receive fee 
money. - 

southern tip of the Latin 
American, continent. 

The talks will lasr three days, 
the first twn at “ expert levcL” 
and Uie third at ministerial 
level between Mr. Ted 

look place ' in New York in 

A British spokesman said that 
the Genera negotiations “ will 
not prejudice, too positions of 
either Government over the 

Rowlands a British Foreign conditions, of sovereignty” for 
Office Minister, and CapL w. the FaUdonds. --Argentina has 
GuaJter Oscar Allara, his claimed 1 rights to file islands, 
Argentinian counterpart. not only because, they were: once 

The talks are the fifth meet- governed .by the Spanish before 
ing in 18 months aimed at con- becoming *- British colony In 
eluding agreement on forms of J77L 
economic co-operation between AP 

PSA brings $99m suit 
against Lockheed 

SAN DIEGO— PSA, the parent After- fee groundings, PSA 
company of Pacific Southwest said if tried unsuccessfully to 
Airlines, has sued Lockheed pemmdc . LocJchfeed :to return 
Corporation In a- federal court . prepayments "find credits exceed- 
here for 599m for alleged viola- ing 522m. 
tions of federal anti-trust laws. PSA- had signed agrtemem* 
The suit accuses Lockheed of lo buy thfee more, 
preventing the airline from The suit alleged that. Lock- 
selling two MAH TriStur Jets heed thwarted PSA'b attemto 
delivered in 1974. SA asserted to sell fee aircraft and cited 
that Lockheed blocked Its major costs of mofefication 
attempt to sell the aircraft to Reuter . 

at least five other airlines. - — — , ... 

In Burbank, California, Lock- 
heel had no Immediate comment 
on the suit. 

PSA snid it grounded ‘the 
aircraft soon after delivery 
hecuuse of “mechanical prob- 


Pitney-BowM bids for Meta- 
phone; ~ . Scepticism ■ follows 
Kennecott^.^otemcnti Hafii- 
stm’s ‘Bay drills battle for 
Simpsons— Page 31 , . . 

‘Warner ma&ssap , r : 

MR -JOHN Warner, husband of 
EUtfbefe Taylor^ fee; actress, 
hOs beerl cofifirtrted as fee new 
Republican r : Senator '-'/-for 
Vlrgiflia».,He beat Jtth Andrew 
Miiler T toe Demoerat,. by : only' 
,4,721 -votes. Out of .more than . 
1.2m - past,- iri - : fee election last' 
pmdafej- Jurek . Jffaffei; writes- 
fr6nti\Vh3lilnfitofe. . • ” 

..vVUjgfeia Jkw stipulates that 

when %j margin' of victory is- 
less -fettn 1 per cent' the loser : 
may dtotand a recount but has 
to pay feL. it if the result is 
unchanged;*.-. Miller conceded- 
Lafter dlscoviffing' that the cost, 
‘pould bfe 270,600. Since -the' seat 
was formerly- held by a Sepubli- . 
can, - Mr.- Wifeiin Scott; .the 
coftposhlotl of %he Senate is 
unchanged. ., . "-. L 

Chile *i?S 

IN; A NOTE to - thA Brazilian 
Government Araentiaa : has 
blamed Chile for fee failure of 
talks In Suffnoi Airns agree 
Oh terms of medUtionYby the 
Holy Sen in feet Beifcle, Canal ' 
dispute; * .-AP .reports from 
Brasilia; Chile had/.dt^rged 
from already agreed- jmeitions, 
fee bote . said. - ' - . 

nReutfet'-adds : ; A' Chilean 'air- 
llher going to - Brazil wai forced 
to: return to ■ Santiago yesterday 
bepatife. it .'did nut -have 'the- 
appropriate . documents -to over-_- 
fly. =Argi6tuUiUh-. teiritary, a 
1 Lad&Co Airline offidai^said.. 

bit ioi&AlJT : . . 

. , . .. ftve par: cent of TLS. ' 
citizens backarunvSALTtreaty 
between the United States .and 
fee Soviet Union feat would 
place .- - limits on • nuclear 
weapons, an - Associated - Pres*- 
.NBC ,^ew& poll /shows. The 
revel “of support ^is five points - 
above;, toht found .by the news 
poll In October and the highest 
.in.; fee; past two-- yeara^ AP 
reports ' from . New Yo rk. 

Railway, rows 
may end in 


-IVASHINGTON'-ir' .The pros- 
pect, of a iiatiomWtle rail strike 
4? .; emerging ofl: two '-labour 
.fronts -.within the U.S. railway 
industry, - 7 ,- .. - /i.. 

Develbpnaent* on one front— 
Uie, IboB-stamiing intia fictional 
jinfe ; job^eenrity ■ dispute 
botween the, . Brotherhood of . 

Airline Clerks and 

the Norfolk, and, Western rail-. 

way^could/Jead /to strike in 
kMuFa month*;. ;/•- .- 

-t-SliS??* J^ a ® greater 
ppsstSHJty : of a major strike 
over a.-- continuing cootract 
. dispute between J fee Railway” 
derte* union snd many of the; 
tohlor rail companies 
‘ understood feat/ -fee 
Nafemal/McdiatiDti. Bo^rd will - 
set;- a 90-day ' ultttoflturn - in 
motion; ' tWs/ r wedK», by making 

wimn disptito- -between ‘ the 1 
rBMy*Y. .'Companies; aadi - fee 
clef Ju/uniocL • -/ ‘ ':>• l _• 
ap-dj^;- . I- 1 .?...- 


' * Ajiiji. 


K- . • •’ ! ®S^a^aT 3$ 1978 


1 f 0n e$toi, 
funds le|| 


vVr^- : 

Agreement onsubsidics 
aids Geneva trade talks 

»:*-* ,,tvi 
ffi*; * > .- 


TOKYO ROUND negotiators in 
Geneva have cleared: another 
major hurdle hr. reaching broad 
agreement on a- interna- 
tional. subsidies cbde r one of the 
key outstanding . issues of the 
international trade talks. ■ 

The European -Commission 
now- feels able to recommend 
the Nine EEC government to 
endorse ’ the. -subsidies agree- 
ment, and the TIS- also seems 
to be happywith the outcome. 
'Washington had made tbe issue 
one of its highest - priorities of. 
the entire five-year-long negotia- 
tions. : . -1. O - ... 

But despite important pro- , 
grass on. this and mother sectors 
of the - talks, .two eenibus 
difficulties .ere .threatening . to 
prevent the three main partici- 
pants— the US., the EEC . and' 

reaching - outline; agreement on 
a final pa doge' deal before 
Christmas. The. difficulties ere 
over new rules for safeguards 
against cheap imports and the 
extent of. new- industrial tariff 
cuts. -• ••• 

Nevertheless, the- . subsidies 
deal is politically significant it 
shnwii^ fhe.' 1JS-. Administra- 

tion in its. bid to .persuade 
Congress to extend trade 
legislation in the New Tear and 
thus prevent the [sspection of 
new ; countervailing : duties on 
subsidised imports, mainly from 
■The: EEC.- - , . . - - ■ 

. The- Community 'has made tt 
dear , that it cannot sign the 
: final ideal unless the waiver ex- 
empting the ' Administration 
from: imposing suchj duties ds 
prolonged. •- r : - 
In the deal on subsidies, the 
Comzntcuity has agreed to exer- 
cise restraint in. seeking new 
markets for its farm- exports 
without’ completely' fossilising 
present trading patterns. The 
US. has " dropped - Its earlier 

questionable subsidy, practices 
be annexed to the text of the 
code. . 

Instead, a shortened version 
of the list originally proposed 
by Washington Jtas been in- 
serted Into, the main, body of 

the agreement 

The US. has agreed to 
revise its law on counter-vailing 
duties to bring it in line with 
practice in other GATT 
countries. This means that in 
future. American counter- 
vailing duties would only be 
imposed if it were proved that 
subsidised imports were causing 
material injury to U.S. domestic 

The Community has not, how- 
ever, been able to pin the U.S. 
dgwn ns tightly as it would have 
liked on the definition of 
material injury. 

Another problem has arisen 
over amendments to anti- 
dumping regulations in the 
light of the subsidies agree- 
ment. The Community does not 
want anti-dumping procedures 

against subsidies — given its 
argument that dumping is 
illegitimate while subsidies are 
not necessarily reprehensible. 
Japan, however, is resisting any 
toughening of anti-dumping 

Brazil shipyard earnings rise 


RIO DE JANEIRO— Exports of 
17 bulk carriers, multi-purpose 
vessels and .fishing vessels 
brought revenue of -$15to',fo 
Brazilian shipyards this year. 
In 1877 vessel exports readied 
only 540m. - 

The stronger 1978 . per- 
formance reflects an all-out 
drive by Brazilian shipbuilders 
to sell abroad, despite the world 
crisis. Not only do they partici- 
pate m all foreign - shipping 
trade fairs, but they have also, 
with Government- sponsorship, 
organised their own, trade fair 
in .Rio. de Janeiro. The- first 
Riomar was held in 3977. 'Hie 
second will be held next year 
and. already 50 per cent of the 
stands have been sold. 

• This year's exporters are all 
Brazilian owned: the Ebin/So, 
Emaq. Caneco and Maua yards, 
with Maua the star performer, 
bringing in 579.9m from exports 
of four 26,500 dwt bulk carriers 
and three 15,000 dwt multi- 
purpose vessels. " " 

Maua began production' of its' 

£10m joint . 
venture in 
Hong Kong 

joint venture between the Hong 
Kong stupping grovp C. Y. Tong 
and Chung Wah ShipboiMiiig, 
will build a : HK$100m (£10m) 
shipbuilding and. repair facility 
hi Hong Kong, according to the 
. Hong Kong Trade Development • 

The complex wiH be designed 
to acconnnodatB rep^r and con- 
struction of conventional and 
specialised 1 vessels used ; for ' 
marine oil exploration. 


15,000 tonne .c/xahtti-purpose 
vessel in 1972, under, licence 
from Austin and- Pickersgili. 
With Sener of> Spain, it 
developed the 26,5G0i tonne bulk 
carrier, and now operates ancil- 
lary companies like Helistone, 
a joint venture wife : Britain’s 
Stone Manganese (propellors, 
whose welding technology Maua 
has now absorbed), a boiler 
making and finishing; plant, add 
a gangway /davit/crane and 
hardware unit, which supplies 
other Shipyards' ia. Brazil and 
Latin America. 

Brazil’s . shipyards operate 
under the ambitiofiis national 
second shipbuilding programme 
devised in 1974, fovolving in- 
vestments of $3.3bn\and produc- 
tion of 5.3m tonnaE*3rl982. 

The programmer .requires 
Brazilian-built vessfels -to have 
first 70 per cent, fhezC85 per 
cent national Content 
(materials, parts ";and . com- 
ponents! — ratios Shipbuilders 
are finding it hard to 1 achieve in 
this short space of 

Brazil’s potential /growtfc ; as a 
buyer of vessels hasi atffewted 

two major foreign concerns: 
Xshikwajima and BhineScheid- 
Verolme. In the Rio de Janeiro 
area these Japanese and Dutch 
shipbuilders are producing bulk 
carriers or supertankers for the 
Brazilian oil monopoly, Petro- 
bras, which imports almost 
$4bn a year in crude oil and 
exports oil derivatives to Latin 

Petrobras Tnrik carriers serve 
a dual purpose— outward bound, 
they cany iron ore or other 
commodities for foreign clients 
of the mining conglomerate, 
Companhia Vale do Rio Doce, 
or other concerns, and bring 
back crude oil. 

Verolme’s Brazilian shipyards 
made no exports this year, while 
Ishikawajima of Brazil exported 
a floating dock, but no vessels. 
As a further spur, Brazilian 
shipbuilders now hope the 
Government will comply with 
their request to raise' the level 
of supported financing from 80 
to 90 per cent, reduce interest 
(currently 8 per cent) and 
extend periods of grace and 
grant other financial incentives. 

•* BY LYNTON tycLAJN. .. 

THE • ITALIAN ' Adriatic* di 
Navigazione . .^shipping line 
announced yesterday the intro- 
duction. of arnew class of con- 
tainer vessel on routes from 
northern ,:'Europe to the 

The Jptevante Express; the 
first ofirthe' two new “Boxer" 
class 'vessels owned by Sea 
Containers and operated by the 
line,- will call at Felixstowe and - 
Hull en route, to Rotterdam and 
the Middle East starting in the 
middle of next month. It wiH 
be joined by the Fenkaa 

aiian container line 

Express in mid -March. The ships 
were- built in Japan, but further 
new vessels may be built in 

Each ship has a container 
capacity of 576 containers, three 
times that of earlier “Express” 
vessels operated by Adriatica. 
They cany containers on deck, 
with roll-on roll-off vessels 
carried in the hull. 

The ships are provisionally 
expected to call at Alexandria, 
Lattaraa, Limassol in Cyprus, 
Naples, Piraeus. Malta, Tripoli 
and Tunis. 

Soviet gas 
pipe order 
won by 

By Jonathan Carr 
BONN — Despite the current 
strike in the West German 
steel industry. Mannesman]! 
bos gained another large 
order from the Soviet Union 
for large -diameter steel 

The order given to the 
trading group Hannesmann 
Handel /Thyssen Stab Ionian 
by the Soviet organisation 
V/O Pramsyrioimport is for 
700,000 tonnes of gas piping. 
No precise figure for the 
value of the order is given, 
but It is thought to be dose 
to DM Ihn. 

The pipes will be produced 
in the new factory of IHannes- 
mannroehren-Werke at Muel- 
heim iu the Ruhr area, and 
delivered throughout next 

The factory is one of those 
hit by the strike, and the com- 
pany warns that a continua- 
tion of the stoppage, now 
three weeks old, could place 
both fulfilment of the order 
and jobs In danger. 

Mannesmann is one of the 
world’s leading steel piping 
manufacturers and has re- 
ceived orders for more than 
4m tonnes from the Soviet 
Union since 1970. 

The company is also a lead- 
ing plant construction ami 
engineering group. Last 
month it announced a new 
DM 613m investment' pro- 
gramme — much of that going 
to the pipes division. 

Comecon debt 
of $200bn by 
1990 predicted 

By Paul Lcndvai 1 

VIENNA — The aggregate 
debt of the Comecon coun- 
tries will reach, even under 
relatively favourable trading 
conditions, about $200bn by 
1990, according to Dr. Fried- 
rich Levlck, the director of 
the Vienna-based Institute on 
East -West Comparative 

The institute has prepared 
study for the Austrian 
Ministry of Trade on Aus- 
tria’s trade with the East in 
the 1977-80 period and also 
presented some long-term 

Dr. Levick added that- the 
Comecon countries are un- 
likely to be able to balance 
their trade with the West 
before the end of the 1980s. 

A high rate of imports 
from the East are unlikely 
and even on the assumption 
that there will be no upsurge 
of protectionism, the growth 
rate of East European exports 
to the West will not surpass 
7 per cent per annum. 

Western exports to the East 
should expand at an annual 
rate of 4.9 per cent, according 
to the institute’s estimates. 

Total Comecon indebtedness 
was expected to reach $200bn 
by 1990 with the Soviet Union 
alone accounting for up to 

Asean projects move ahead slowly 


five ASEAN countries who met 
in the Malaysian, capital last 
week, have , finally - given the 
green light for. Indonesia and 
Malaysia -to start their urea, 
projects, giving a boost to- the 
ASEAN plan of regional import- 

. The twQ . urea plants are 
among five industrial projects 
agreed at the ASEAN, summit 
in Bali in February. 1976. Thai- 
land was to undertake the manu- 
facture of soda ash, the Philip- 
pines superphosphates, and, 
Singapore diesel engines* - v 

It'is now close to three-years- 
since Bali, and even Datuk 

Hussein Onn, the Malaysian 
Prime Minister, a man noted for: 
his cautions approach to things, 
has., complained or their slow 

A great deal of the delay can 
be attributed to the ASEAN 
Heads of Government thetb£ 
selves. At Bali they were under. ; 
considerable pressure to show 
to the world that their regional : 
group was not merely a talking 
forum. ...... . V- : 

The ASEAN heads were meet- ' 
ing. just after- the • Commupjst 
victories in Lado- China, -and- 1 
they were eager to demonstrate,;' 
particiflarly to an arrogant 
Hanoi, that ASEAN has econo-ji 
zoic as well as political clout.; 

It was only after the Bali 
summit that ASEAN began to 
.realise the difficulties in starting 
^ these projects, as they carried 
; but feasibility studies, and lay 
down the ground rules for 
:-equily participation and manage- 
ment Immediately, national 
■interests over-rode regional 
considerations as Indonesia 
1 demanded that Singapore limit 
'itself to make diesel engines 
- above 500 hp, to protect its own 
small plants. 

V '• At the ASBAN-Japan dialogue 
-In August last year, the ASEAN 
^countries closed their ranks 
■ again to extract a pledge from 
r Tokyo to help finance the indus- 
; trial projects by up 1 to $lbn- 

We are pleased to announce 
the following election 


as Senior Vice President 
rood Secretary 


- S8?ineStx^N^Y^NJC100Q5 

UK process plant companies may 
miss opportunities in India 


THE UK process plant industry 
has only a short time to con- 
vince the Indian authorities 
that it can supply equipment at 
a competitive price and meet 
stringent delivery dates if it is 
to gain a share in India’s 
ambitious fertiliser plant expan- 
sion programme. 

A mis sion arranged by the 
industry's economic develop- 
ment committee has just 
returned from India with 
details about the programme. . 
Agencies of the Indian Govern- 
ment' plan to build four major 
amm onia and urea plants, 
known as Gas I-IV, which will 
use gas supplied from the two 
fields off Bombay known as 
Basein and Bombay High. 

When completed, at an esti- 
mated cost of £S00m, they will 
be producing 1,230 tonnes a day 
of ammonia, and 4,20 0 tonnes 
a day of urea. Three other new 
and expanded fertiliser plants 
are also planned in the east of 
India and in Assam, one of 
which has already named 
Foster Wheeler of Britain as its 
main contractor. 

The Indian Government has 
already named Rashtriya Chemi- 

cals and Fertilisers as the main 
contractor for Gas 1 and n. 
Although India has a sizeable 
process plant industry of its 
own, the complexity and the 
speed with which it wants to 
complete the Gas I-TV pro- 
gramme — all four are aim ed to 
be completed over the next 
three years — means that foreign 
equipment will have to be 
brought in. The authorities 
estimate between 3040 per cent 
will be imported, but it may 
well turn out to be higher. 

Bids opened on November 10 
for the appointment of the main 
foreign contractor for Gas. I and 
H, and the two UK contractors 
— Humphreys & Glasgow, and 
Kellogg UK — have put in their 

But the response of the 
fabrication side of the UK 
industry has been poor so far. 
Initial announcement of the 
tenders for fabrication equip- 
ment produced just one reply 
from this country 10 days before 
the close. The final announce- 
ment for tenders was published 
earlier this month. 

Sir Cyril Pitts, ex-general 
manager of ICI International, 
who Jed the mission, admits that 

the reputation of the UK 
industry in India, is generally 
speaking, very poor. 

*' We heard allegations of 
uncompetitive pricing and poor 
delivery, as well as more minor 
complaints about things such as 
poor packaging and documenta- 
tion. The result is that the 
Japanese, Germans, French and 
Italians are taking over this 

Industry figures show that the 
UK accounted for around one 
quarter of India's imports of 
process plant equipment in the 
early 70s. By 1976, the share 
had shrunk to 9.2 per cent. 

Yet Sir Cyril says there is 
still “ enormous goodwill ” to- 
wards the idea of buying 
British, which has been helped 
by the visits over the past IS 
months first by Mrs. Judith 
Hart, Minister of Overseas 
Development, and then by the 
Prime Minister. 

Mrs. Hart’s visit in August 
1977 was designed to make 
British aid to India, running at 
£140m annually, to be used 
more purposefully. But the 
Indian Government does not 
intend to use this aid for the 
building of Gas I and IL 

Fall in Swiss textile orders 


ZURICH — The volume of 
orders on hand has fallen sub- 
stantially in the Swiss textile 
industry in the current fourth 
quarter, despite considerable 
price concessions. 

According to Dr. Alexander 
Hafner, director of the Swiss 
Textiles Chamber, in an end-of- 
year study published by Credit 
Suisse, order books have fallen 
off so much as a result of the 
higher Swiss Franc that various 
companies have had to intro- 
duce short time or are about to 
take this step. Others have 
decided to cease production and 
close down altogether, be says. 

Mr. Hafner said turnover of 

Swiss textiles had dropped by 
more thkn 10 per cent this year. 
He said the industry had lost its 
competitive power overnight 
because of the “drastic appre- 
ciation ” of the currency against 
West Germany— its , biggest 
single customer. 

He stressed the importance 
to textile manufacturers of the 
National Bank move to raise the 
DM exchange rate a gains t the 
Swiss franc and said that the 
industry would also welcome 
Swiss co-operation with the 
European Monetary System and 
Government promotion of 

Despite the difficulties facing 

the industry, Mr. Hafner said 
the “psychological low" had 
now been overcome, with the 
new Swiss monetary policy and 
U.S. measures to support the 

He viewed 1979 with what he 
called cautious optimism, saying 
It had been proved repeatedly 
how resistant the textiles sector 
was to economic setbacks. 

While expressing concern at 
the gradual exodus of the Euro- 
pean clothing industry jo the 
southern Mediterranean, he 
stated that Swiss textile manu- 
facturers had now plans to shift 
their capacities into the “low- 
price producer countries.” 

P 2 “ contracts i Polish award expected 

for Stone-PIatt 

STONE-BLATT Industries have 
recently won orders worth 
more than £3 2m to supply 
equipment to various parts <xf 
the world. 

■ .The textile machinery manu- 
facturers, Plait Saco Lowed! and 
Scragg have won orders worth 
£22m including a large, single 
order for Hatt Saco Lowell 
worth £5.5m for equipment for 
Misr Spinning and Weaving in 

Scragg has also been awarded 
a £3 -25na order in the U.S. for 
high speed, draw-texturing 


WARSAW — The Polish 
authorities have decided to split 
into two stages the award of 
contracts far an aromatics and 
polyester fibres project which is 
to be built at Pila and Plock 
and is worth an estimated 
$3 00m. 

The battle for one party of the' 
project, the 42,000 tonne annual 
capacity polyester filament 
yard and staple fibres plant at 
Pila, has reached the stage of 
final price negotiations. 

The Poles are expected to 
award this contract, estimated 
to be worth in the region of 

$150m to $180m in the near 
future. Two Japanese consortia 
are bidding for the polyester 
plant against a US. group in 
which Chemtex is offering the 
enginewing and construction 
2long with Du Pont technology, 
and a British and West German 
group led by Davy International 
Projects which is offering 
Zimmer technology. 

The Polish decision to split 
the contract means that com- 
panies from outside the main 
four groups in the race till now 
will be bidding for the rest of 
the work. 

Anger aver 

By Lynton McLain 
BRITAIN MAY call on the 
European Commission to take 
united action against a Nigerian 
Government plan to inspect all 
exports to Nigeria from January 
The U.K exported £lbn of 
goods to Nigeria last year and 
the Trade Department said yes- 
terday it would monitor the 
effect of the inspections on 

The control on the -quality, 
quantity and price of all exports 
to Nigeria, with some unnamed 
exemptions, was called far by 
the Nigerian Government to 
help prevent the export of 
excess foreign exchange from 
the country. 

The Trade Department said 
the inspections could lead to 
delays in the export of goods, 
extra storage costs and more 
office work for exporters. 

Britain would be talking with 
other trading partners about 
the impact on their trade with 
Nigeria. It was possible that 
the unilateral imposition of in- 
spections may be a technical 
barrier to trade, or it may even 
be illegal, the Trade Department 

France stays 
in the black 

By David White 
PARIS — France’s trade 
balance remained in the black 
last month with a seasonally 
adjusted surplus of FFr 342m 

Although much lower than 
the October surplus of FFr 721m, 
the figure confirms the sharp 
' turnaround in French trade 
since last Autumn. This year 
has produced surpluses for 
every month so far except 
January and August 
But the FFr 2.9bn adjusted 
surplus clocked up in the first 
II months is overshadowed by 
the prospect that France will 
have to find an extra FFr 6bn 
next year to cover its oil bill, 
following the OPEC meeting in 
Abu Dhabi. 

Jordan to buy 

By Rami G. Khouri 
AMMAN — The State-owned 
Jordanian airline Alia has 
bought two helicopters from 
the American manufacturers 
Sikorsky to launch what is be- 
lieved to be the Middle East’s 
first domestic helicopter service 
for business people and tourists. 

The deal, worth $2.5m includ- 
ing spares and training, will see 
the two twelve-to-fourteen seater 
helicopters delivered and put 
into service in the autumn of 
1980, Alia chairman and 
general manager All Ghandour 
said here today. 

The area plants are probably 
the easiest of the five ASEAN 
projects. Even if they were 
not designated projects, both 
Indonesia and Malaysia would 
have built them themselves, 
considering their large reserves 
of natural gas, their enormous 
demand for fertilisers, and in 
the case of Malaysia, its huge 
reserve of cash piling up at its 
national oil company, Petronas. 

Malaysia’s urea plant will be 
built at Bintolu in Sarawak, i 
where Petronas is in partnership I 
with Shell and Mitsubishi to 
build a $lbn liquid natural gas 
plant. The Indonesian plant will 
be located at Acheh, in North 

Both the plants will have an 
annual capacity of slightly over 
' 500,000 tonnes of urea and 
ammonia, and Indonesia’s plant 
Is estimated to cost $32 3m, -while 
the cost of Malaysia's was not 
disclosed. Both are basically 
for domestic consumption, with 
perhaps 10 to 15 per cent for 
export to Thailand and the 

It was agreed that prices of 
their products should be com- 
parable to world prices. There 
were fears, however, that the 
ASEAN projects could be un- 
economical, and . consumers 
might have to carry them as 
lame ducks. 

The host country will bold 60 
per cent of the equity (which 
it could invite foreign partici- 
pation) while each of the 
ASEAN members will take 13 
per cent, with the exception of 
Singapore, which will hold only 
one per cent. Singapore is 
holding back as an expression 
of dissatisfaction of Indonesia’s 
stand on its diesel engine pro- 
ject, and partly because it con- 
sumes little of their products. 

Both Indonesia and Malaysia 
have gi?en 1984 as the target 
for their plants to go on stream. 
However, the appreciation of 
the yen now poses a problem. 
ASEAN would like Japan io 
offer finance in softer 
currencies, and as one Minister 
puts it: “It is no good if we 
get 2 or 3 per cent lower in 
interest rates, when the yen is 
rising by 15 to .20 per cent a 

vvnenaoing Dusmess 
in Saudi Arabia, 
the first tiling you need 
is a second bank 

The Saudi markefcis no more difficult than 
anyothen . 

But it is different. 

Which is why the f i rst thing you will need is a 
second bank, which is international and has special 
expertise in Saudi Arabia. 

Saudi International Bankis a wholesale bank 
located in is an ideal complement to your 

For example, Saudi IntemationalBank is the major 
London marketmaker in RiyakMany international 
companies use and value this service since most 
contracts with the Saudi Arabian Government are . 
denominated in that currency. 

• _ „ • So when you are doing business in Saudi Arabia 

get in touch with Saudi International Bank. 

Either write or telephone to Matthew Carrington 
.. at99Bishopsgate,LondonECZM3TB. 

• Telephone (01) 63 S 2323. 


Saudi International Bank 


ShmitfidasSaniflAiatianlkfonrfafyAp^Ri^BarUs&tk^CaH^^ Company of I'icwYak’DieBank of Takyt* 


' , A • • • .. 


" j^ancial Times ^ 


‘Fringe bank’ 
fights order 

Pound | Labour wants 

to liquidate 



stand on 





By David Fishlock, Science Editor 

THE FIRST serious attempt by 
an important sector of the 
nuclear energy industry' to 
respond to heightened public 
awareness of the dangers of 
nuclear proliferation, and in 
particular with the new U.S. 
Non-Proliferation Act, has heen 
made by the international 
uranium industry. 

The Uranium Institiute, in 
London, has released a set of 
guidelines for Government 
nuclear export policies. 

They are designed to replace 
the case-by-case approach to 
uranium supply contracts, 
which the industry finds 
frustratingly slow in relation to 
the size and time scale of new 
uranium raining and process- 
ing projects. 

Tliev have been submitted, 
with UK Government endorse- 
ment. tn the International 
Nuclear Fuel Cycle Evaluation, 
t/i? two-year reappraisal of 
nuclear technology launched by 
President Carter last year In 
the search for tighter controls 
over nuclear proliferation. 

The 11 guideline* agreed by 
the "7 members of the Uranium 
Institute, whfrfi includes con- 
sumers and producers from 11 
countries, implicit]? criticises 
recent unilrteral actions hv the 
U.S.. Canada and Australia. 


They recommend that rules 
oriented hy individual Govern- 
ments when framing non-proli- 
feration objectives should be 
based on a broad consensus on 
behaviour and should be intro- 
ri'iced only after adequate ctis- 
cus*lons vrith the whole 

Rule? shnuid not .attempt to 
halt technological progress, and 
should be consistent with the 
full development of the nuclear 
fuel cycle. They should be 
framed so as to facilitate unam- 
biguous and non-discretionary 

KENDAL & DENT, a “fringe 
bank ” with Portuguese connec- 
tions, which is under a court 
order of provisional liquidation, 
is to fight the order, according 
to Lord Ponsonby of Shulbrede, 
a director. 

The Department of Trade has 
acted to close the bank under 
provisions in the Protection of 
Depositors and Companies Acts 
on the grounds that it was in 
the public interest that the bank 
be wound up. 

On Friday, the department 
won a High Court order 
appointing the Official Receiver 
as * provisional liquidator pend- 
ing a full winding up hearing 
on January 33. 

Od Monday of last week, the 
department had used the same 
powers to have die Official 
Receiver appointed to Barnett 
, Christie, another small bank 
i associated with Oceana Hold- 
ings. a public industrial group 
whose shares were suspended 
in the Stock Exchange last 
, week. 

The Department firmly 
denied that there was any 
i connection between the two 
e-ents. "There is no question 
of another secondary bank 
crisis. Nor ‘ have we been 
conducting a * witch hunt * 
among the fringe banks." 

Lord Ponsonby said that he 
believed the entire matter 
could be cleared up. While the 
Ueuartment of Trade had not 
itemised the grounds for its 
application, it was probably 
connected with Kendal & 
Dent’s relationships with 
COFTL. a Portuguese bank run 
by the same directors. 

During the revolution In 
Portugal in 1974 COFEt/ was 
nlaced under a closure order 
by the Government That order 
had been contested in the courts 
and was overturned last month. 

It was possible that the 
department had obtained news 
of the earlier court hearings 
and these had clouded COFIL’s 
status as an operating bank, said 
Lord Ponsonby. 

Meanwhile. Kendal and Dent 
has also been involved in alter- 
cations with its auditors, Stoy 
Hayward, over its connections 
with COFJL. 

Lord Ponsonby said that a 
“ fair proportion ” of Kendal 
and Dent’s funds were 
deposited with COFIL. 

The board of Kendal and 
Dent has held three meetings 
with its auditors, who have 
qualified the accounts on the 
grounds that they could not 
obtain independent evidence of 
the transactions between the 
two banks. 

By Peter Riddell, Economics 


Silver reserves 

Stoy Hayward has recom- 
mended that additional inde- 
pendent share capital be 
injected into Kendal and Dent 
The arguments apparently 
caused the report and accounts 
to be delayed, but Lord 
Ponsonby said that they were 
finally approved on Friday. 

Kendal and Dent is a fringe 
financial organisation with 
assets of £7m. It specialises in 
silver bullion accounts by which 
depositors’ funds are automatic- 
ally converted into silver 
reserves. It also otters inter- 
currency' facilities through the 
foreign exchange markets. 

• In the case of Barnett 
Christie, one issue is also 
thought to be the connections 
between the bank and Oceana 
Holdings, which has the same 
board. Barnett Christie’s 
auditors have also questioned 
the position of loans from the 
hank to one of Oceana’s sub- 
sidiaries, Haper Plastics. 

THE SHORT-TERM prospects 
for sterling have improved as 
a result of Government action 
to stabilise the exchange rate, 
but the outlook for the pound 
is bearish on a longer view 
because of a loss of com- 
petitiveness, it was suggested 

The conclusion Is contained 
in the Exchange Rate Outlook, 
published today hy Mr. Terry 
Burns and Mr. Bill Robinson 
of tile London Business School 
in co-operation with Gower 
Press and money brokers 
Charles Fulton and Company. 
The business school is not for- 
mally involved. 

The detailed analysis suggests 
that the Government will be 
broadly successful in its aim of 
stablising sterling over the 
next few months. But on a 12- 
month view, Outlook is less 

This is because pressures 
after an election to improve the 
UK's competitive position could 
be significant, monetary policy 
is unlikely to be consistent with 
exchange rate stability, and a 
current account deficit is 

The price competitiveness of 
British goods is expected to 
deteriorate further over the 
next year because UK wholesale 
prices are forecast to rise by 
7.8 per cent next year compared 
with a 5.6 per cent increase in 
the prices of competitors. 

The Deutschemark is ex- 
pected to move upwards but the 
recovery in the Japanese Yen. 
after List month’s heavy fall, 
probably will he at a much 
slower pace than in the past. 

io the polls next year with two 
different and possibly contra- 
dictory manifestos on Europe. 
As things stand at the moment, 
the elections for the European 
Parliament could be fought on a 
manifesto approved only by the 
Left-wing dominated National 
Executive Committee. 

The manifesto for the British 
General election, on the other 
| hand, has to be agreed jointly 
by the Committee and the 
Cabinet and is likely to be less 
hostile towards Europe • than 
that favoured by the executive, 
which opposes the whoel idea of 
direct elections to Strasbourg. 

At its meeting tomorrow, at 
which highly controversial pro- 
posals for the British manifesto 
will also be discussed, the com- 
mittee will be asked to approve 
a plan for drawing . up the 
European manifesto agreed by 
the home policy committee 
beaded by Mr. Anthony "Wedg- 
wood Berm and by the Inter- 
national Policy Committee. 


These two committees were 
responsible for drawing up the 
much publicised proposals for 
the British election manifesto, 
which ministers will be doing 
their best to kill off at the meet- 
ing of representatives of the 
NEC and the Cabinet to follow 
the Executive's meeting. 

Under the scheme proposed 
by the policy committees, 
Transport House staff will be 
asked to draw up a draft 
manifesto for the European 
elections which will then go be- 
fore a full meeting of the NEC 
in January. If it receives the 
necessary approval, it would 
then become the Labour Party’s 

official manifesto for the direct 
elections. j 

A manifesto approved only- 
by the NEC is likely to take a 
far more negative approach to 
Europe than one drawn up' 
jointly with the Cabinet 
While the Government may 
make the need to improve the 
EEC's farm price policy one of. 
the platforms of its election 
campaign, it would almost cer- 
tainly take a softer line, on. 
things such as the European 
Monetary System. . • r 

As Europe will be one of the 
subjects covered by the mani- 
festo for the British General 
Election, the Labour Party 
could be left with two different 
sets of commitments. 

The situation arises because 

foe.-party's much-prided con- 
■stitotion written in 1918, makes 
bo provision for the possibility 
at European elections. -While 
i th& Constitution details the way 
-the. manifesto for Westminster, 
■elections has to be agreed 
jointiy at a “ Clause 5 ” meeting 
of the NEC' and Cabinet, ft is UP 
to -She party now- to decide how 
-tor. approach the European 

. ; . The two .. .committees 
responsible’ for drafting policy 
for 'the NEC have decided that 
under the constitution, it 
is the NEC which is entrusted 
. with carrying out the annual 
conference decisions, if is this 
: Kody which should have the" 
final- say on tile European 

- Ministers will say, however, 
-that it would be ridiculous for 
tb^ party to go to the country' 
-Wta two separate policies on 
^Europe and that the Cabinet 
; should be involved In drawing 
up* the European manifesto in 
th£ same way it is for . West-, 
minster elections. 

. ^Britain’s contribution to the 
EEC budget was the subject cdf 
a -..meeting of the TUC/Labour 
Party Liaison Committee yester- 
day. This body was set up to 
cement the links between the 
different arms of the Labour 
movement. It agreed that the 
Government should put pressure 
, an other European -governments 
in an attempt to reduce Britain’s 
disproportionately large contri- 
bution to the Community budget 
The committee echoed the con- 
cern. expressed by the Prime 
Minister in bis November speech 
at the Guildhall, about the lack 
of- equity in the present arrange- 
ments for financing the Com- 
' munity's activities, ‘ , 

By Midtael CasseH, ' 
Bufoftng C o rres p ottfen* 

• f im building industry has 
called oa ; t Prime Minister ’to 
speD out-the :Uovennnent's posi- 
tion on. proposals which- would 
put parts of ’ it - under • State 
control. . V-, ---■ ’ 

The industry, - which hai 
fought, a national campaign 
against Labour Party proposals 
to' nationalise some contractors 
and building • material pro- 
ducers, has asked Mr. Ca ll aghan 
for . ' assurances ■ that he; is 
opposed to their adoption: 

The '.request^ made by : Sir 
'Maurice Lain*, chairman, of the 
CABIN. anti-nationalisation cam- 
paign . and ’ president ' of foe 
Federation' of ’ Civil' Engineering 
Contractors-, has j .eprqa -fo .the 
wake of suggestions that" the 
proposals are under active con- 
sideration . for inclusion in the 
next general election-manifesto. 

Sir Maurice has written to the 
/Prime Minister; eraphas is lug th e 
•>“ overwhelming- and :, pibyen ” 
hostility to the nationalisation 

plans •' -from the- 5 gobhc/. and . 
building industry workers land 

bunding industry workers ^and 
expressing “ serious- alarm ”at 
foe . prospect of the proposals 
becoming Government potter- 
- The industry was. surprised: 
and disappointed that -there had 
been no, : formal discussion on 
the plans and : continuing 
uncertainty over their - - future - 
was r damaging confidence.'.-. - 
: WeTemain' convinced' that 
nationalisation of any-, part 
either ' of . our . industry or = pf 
our: suppliers, would, be damag- 
ing to the industry's- Overall 
efficiency and to the "national 
interest \ 

There should b? a clear pre- 
sumption that eoniracts, once 
concluded, will be fulfilled un- 
less both parties agree other- 
wise. or unless one violates the 
non-proliferation rules. 

Brag price rise of 30% 
worries pharmacists 

Lottery report 
rejected by 
district councils 

Price Commission to decide on Ford Criticism 


8y Paul Taylor 


Governments, the guidelines 
recommended, should assure ful- 
filment of all commercial con- 
tracts approved by their prede- 

Professor Heinrich Man del. 
chairman of the institute. Intro- 
ducing Lhe report, says that the 
guidelines represent a remark- 
able ur.RRiinity between pro- 
ducers, processors and users of 

Government Influence on 
International Trade in Uranium 
. (Tthc Uranium Institute, New 
Zealand House, Haymarket. 
London, SWJ.) 

A GROUP representing more 
than 10.000 pharmacists in 
Britain last night expressed 
“ grave concern " at the 30 per 
cent price rise in the drug 
Brufen agreed between the 
Government and Boots, its 

Mr. Alan Smith, chief execu- 
tive of the Pharmaceutical 
Services Negotiating Com- 
mittee. said that his organisa- 
tion would seek a meeting with 
Mr. Roland Moyle, Health 
Minister, over the increased 
price of Brufen, used by 
hundreds of thousands of 
rheumatism sufferers. 

Under the deal, disclosed in 
the journal of the Pharma- 
ceutical Society, Boots agreed 
to pay back “ excess profits " to 

the Treasury. Boots and the 
Health Department have denied 
that the arrangement was 
“secret” and the Department 
said that the deal was the only 
one of its kind. 

It had been made possible by 
the Pharmaceutical Price Regu- 
lations Scheme, introduced in 
April, under which the Govern- 
ment can require manufacturers 
to repay excess profits. 

Another reason for the price 
increase was to prevent Euro- 
pean wholesalers buying Brufen 
in Britain at a lower price than 
that prevailing on the 

Boots said last night that 
Brufen was still the lowest 
priced drug of its kind on the 

foe Government they- reject all 
foe main recommendations 
made by foe Royal Commission 
on Gambling on local authority 

The Royal Commission made, 
three main recommendations to 
the Government on foe lotteries, 
which are expected to pet up 
to £17m this year. These were 
that there should be a ban on 
external lottery managers, ex- 
penses should be- limited to 15 
per cent of turnover and that 
income should be restricted to 
providing optional amenities. 

In its comments on the 
report the Association of Dis- 
trict Councils says that to deny 
local authorities external lottery 
managers Would be "a wholly 
unwarranted intrusion into 
freedom / of action ” which 
would nbt necessarily reduce 
costs or improve efficiency. 

THE WEEKLY meeting of the' 
Price Commission tomorrow, 
which will decide whether or 
not to investigate Ford, conld 
prove an opportunity for Stir. 
Charles Williams, foe commis- 
sion’s chairman, to clarify the 
position on pay and prices now 
that the Government has 
abandoned sanctions. 

It had been widely expected 
that Ford, which notified the 
Price Commission three weeks 
ago that it intended to put up its 
prices by 4.9 per cent, would be 

The commission’s decisions on 
which companies it will investi- 
gate. are made independently of 
foe Government, and Mr. 
Williams emphasised again last 
week that the commission is not 
an instrument of Government 
pay policy. But it is obvious 
that Government preference is 
communicated- to foe commis- 
sion. and it Is therefore possible 
that the Government’s weakness 
in applying pressure to the 
private sector after last week’s 
defeat in foe Commons will lead 
to Ford’s escaping a Price Com- 

mission investigation. 

Both Ford and the Price Com-'- 
mission have for the last three , 
weeks taken the view that even 
if the company were to be for ' 
vestigated, it would be able to 
implement its price increase 
during the three-month period ' 
of investigation as a result of 
the profit safeguard clauses. 

An assessment of Ford’s 
market position by stockbrokers, • 
Phillips and Drew, published* 
yesterday, forecasts that, even 
if Ford prices are restricted, this .- 
will hardly ’ depress domestic/ 
demand for Ford cars. The 
brokers also see Ford’s share of 
the domestic market climbing 
up to 30 per cent iu foe present 
month as the factories get back 
to operating at high levels. On 
this basis. Ford’s overall market 
share for the last quarter of 
1978 is estimated at about 18} 
per cent, against an average of 
27 per cent in the first nine 

Given foe very strong third 
quarter., however, when Ford 
achieved a 54 per cent sales in- 
crease, the second half of this 

year will still see sales at IS per 
cent higher than foe same period 
last year, against a 19 per cent 1 
increase for foe whole "car ; 
market. • .1 

of housing 


Trade curbs 
hit footwear 

By Michael. Cane)!, - . 

Building Correspondent 


Financial Times Reporter 

TRADE restrictions abroad hit 
the footwear. Industry with an.: 

exports fait- - of\ more than 
20 per cent tn Qctdber, says 

20 per cent fo October, says 
a statistical survey by- foe 
British Footwear •*- Mamrfres 
turers’ Federation. \\ . . 

October exports wqre 19.3m 
pairs, 2(k2 per emit below the: 
previous year. Even iff- value 
terms, normally higher, exports 
dropped by 12.7 per cent to 

Imports in the same month 
rose sharply, with- more thto 
98m pairs imported." r; \ 

THE- RECENT- history of foe 
Housing . Corporation ■ repre- 
sented "a saga 1 .-of., ineom- 
: petence,’’ ; according to Mr. 
Michael Heseltine, Opposition 
spokesman in the- environment, 
who yesterday askefffoe- Govern- 
ment hbw it intended to improve 
foe corporation’s public account- 
ability. ; i ": . 

. JLast week, foe-' corporation 
Was forced to postpone foe pub- 
licatKfo .oF- its annuel report 
r and. accounts because uf: what it 
described as “ a possible error 
involving a-few. miltfon pounds.” 

‘ v.’.jfijft October,/, foe > Commons 
PubB£ Accounts Committee said 
ct&fctw’ intended . launching a 
furfodr inqniiy into foe finances 
of -housfog associations as a step 
towards^ making foe. Housing 
Ckifporatibn iulty accountable to 
Parliament ► ~ . ' — • 

Electric trains ‘exports key’ 



more strongly placed to win 
overseas railway contracts 
worth more than £1.7bn if the 
Gnvemmem decided to back a 
sustained programme of rati 
electrification in Britain. 

This is the central argument 
advanced today by the Railway 
Industry Association in its evi- 
dence to the joint British Rail- 
Government railway electrifica- 
tion review. 

The association supports 
British Rail's own basic case 
that electrification is good on 
energy conservation and tech- 
nical efficiency grounds, but 
concentrates nn describing in 
detail the value of a rolling 
electrification programme to 

' industry. 

It points out that much of 
the railway manufacturing 
industry's past success has been 
related to British Rail’s own 
projects. At present, the indus- 
try's annual turnover is put at 
£250m, of which £100m is for 

The main competitors in foe 
export of railway electrification 
products — Sweden. Japan, West 
Germany and France — were 
underpinned by a much larger 
domestic rail electrification 
infrastructure than is foe case 
in Britain. 

Electric traction was the key 
to most overseas railway expan- 
sion and modernisation projects. 
One British company was pur- 

suing 40 electrification projects 
in 18 countries. The total value 
of these schemes to foe British 
industry would be £1.7bn. 

Lack of a continuous electri- 
fication programme in Britain 
was seriously inhibiting the 
development of new technology 
needed to keep pace with 
foreign competition, and also 
created problems in determin- 
ing foe right level of production 

Railway electrification in 
Britain : a railway industry 
view. Free from R1A. 9 
Catherine Place, London SW1E 

New bomb wave is no surprise 


This announcement is neither on offer to sell nor a 
solicitation of an offer to buy any of these securities. 
The offering is made only bp the prospectus. 



THE BOMBS in English towns 
should come as a surprise to 
no-one. The Provisional IRA 
has been throwing out hints 
since AuSust that its autumn or 
winter offensive lit was never 
too precise on -the exact: date) 
would be carried over into 
Britain if necessary. 

Jn an interview in Dublin's 
Ma-giil Magazine in -that month, 
a top member of the Pro- 
visionals’ army council, who 
remained anonymous, said that 
the IRA had solved foe 
logistical problem over opera- 
tions in Britain, which was 
formidable because of massive 

more confidence among Roman 

The police have moved Into 
former “ no go ” areas and 
broken up illicit protection 
rackets, illegal shebeens (bars) 
and taxi services. All of these 
formed an important source of 
revenue for the Provisionals. 


Nor ember 14, 1978 

bird book 

700.000 Units 

AT SOTHEBY'S yesterday a 
copy of ‘'The Birds of New 
Guinea ” by J. Gould and R. 

China Trade Corporation 

Bowdler Sharpe, with 

Each Unit Consisting of Two Shares of 
Common Stock and One 3- Year Stock- 
Purchase Warrant 

coloured ' plates, sold for 
£17,000 in a printed books 
auction which totalled £121.346. 
Two books about Kew Gardens, 
one by Bauer, one hy Meen, 
very rare, both with hand- 
coloured plates, realised 
£12,000. The same sum secured 
“ A Collection of Roses from 
Nature * by Mary Lawrence. 

Since then, lower Tanking 
Provisionals have toW 
journalists through various 
grapevines, that foe campaign 
was definitely on. British Army 
! officers said in foe early autumn' 
foot intelligence reports 'showed 
, an offensive was imminent. 

They also said foe Proves 
, were capable of launching foe 
1 kind of campaign now in foil 
swing, and that they had been 
quiet all summer because -they 
were reorganising. There was 
always foe possibility that the 
Proves and/or the Army -were 
crying wolf, but the balance of 
evidence suggested otherwise. 

The improved intelligence was 
one of the factors behind their 
re-organisation. They have 
broken up their loose and leaky 
brigade and batailion structures. 
Until the new offensive, security 
did look a bit better. All the 
key statistics for the year, 
including deaths, injuries and 
numbers of explosions, were 

province that it takes little 
notice of new atacks. 

The spate of bombs in 
Northern Ireland, itself, for 
example, has warranted little 
news space in British news- 
papers or on British television. 
It is probably safe to say that 
most people in Britain are 
unaware that a campaign to 
rock the foundations of Mr. 
Mason’s policy is going on. 

for political status. Even 
though the troubles are self- 
inflicted, they have gained 
much sympathy among -'foe 
huge Irish population of the 

The. Provos also want sortie 
notice taken of what is going 
on . in. Westminster, where 1 
another five seats are to : be 
given .“.to. Ulster; five seats 
which foe Unionists think they 

last year,. there have been ;355 
bank robberies, mostly by .the 
Provisicniala- giving them a haul 
-of £210.728. In the Republic, 
foe haul rubs into millions: .' 

: The : Provisionals have u split 
: their 'cadres into " four-man 
active service units. Many of the 
.activists. are. 17 and 18-year-olds 
Ifoo; are. new to the movement 
The only other, people "sin indi- 
vidual will know in the' or^ani- 

Price $10 Per Unit 



For a year. Mr. Mason has 
used the improvement to attract 
foreign investors to the pro- 
vince. At a cost in subsidies, he 
has had some success. DeLorean 
Motors has been the most publi- 
cised and the most costly, hut 
with three other American con- 
cerns, it could provide 4,000 new 
jobs by the early 19S0s. 

That will not be enough, 
since with its declining indus- 
tries. Northern Ireland will 
need 25,000 jobs by 1983 if it is 
to get its jobless total back -to 
the pre-troubles level of 7 per 
cent. It is a start, however. The 
key question is whether more 
foreigners will come If the 
bombings continue. 


Copies of the Prospectus may be obtained in any State 
jt here these securities may lawfully be offered by the 
undersigned and such other dealers as may lawfully 
offer these securities in such State. 

A. L. Williamson & Co., Inc. 

Denton & Co., Inc. 

Chapin, Davies & Co., Inc. 

First SVew England 
Securities Corp. 
Werbel Securities, Inc. 

Investors Associates, Inc. 

Friedman Manger & Co. 

Den Norske Credifbank Nugan Hand International 

Works of art and objects of 
vertu at Southeby’s brought in 
£44.993. Hie. highest price was 
£3.000 for a German rock 
crystal snuff box of about 1760. 

| An English gold etui of about 
! 1745 sold for £2.500 and S. J. 
Phillips paid £2,200 for a large 
English presentation gold fob 
seal All the prices carry the 
10 per cent buyer’s premium. 

At Southeby Parke Bernet. 
New York, on Saturday a Laver- 
Rinnan pictorial carpet depict- 
ing the rulers of Persia sold for 
£53,300 in a rugs and carpets 
auction totalling £828.807. 

Behind the campaign is a 
determination by the Pro- 
visionals to disprove the claim 
by Mr. Roy Mason, Secretary for 
Northern Ireland, that security 
has been improved to the stage 
where a revival of economic life 
is possible. 

From the start of his stint 
two years ago Mr. Mason concen- 
trated on security, leaving the 
politicians Well aloneJ" He 
allowed the crack SAS troops, 
of whom there are thought to 
he 120 in Northern Ireland, to 
operate throughout the province. 

Intelligence operations have 
been stepped up both by the 
police and foe Army. The Royal 
Ulster Constabulary has become 
less partisan, it is claimed, and 
has been able To operate with 

Since the beginning of last 
month the Provisionals have 
been raging economic warfare. 
More than 120 bombs have 
been placed in the province, 
but only one person has been 
killed, though dozens 'have 
been injured. Fearful of .alien- 
ating Roman Catholic sympathy 
the way they did with the La 
Mon Restaurant bombing of 
February last year they are 
attacking factories, shops and 
other economic targets. They 
have done £l2m worth of 
damage so far. 

la terms of publicity value 
however, they probably have 
not achieved their goal. It is 
one of the lesser tragedies of 
Ulster that the world is so 
weary of the horrors, of the 

t m 

ihe 7naaus of a car in which a bomb, thought to be work of the H5A; exploded early 
yesterday m High Holborn, central London. Another bomb exploded ju a ear narit dear by. 
Five people were taken jo hospital wfth misar Injuries - ■ : 

Hence foe bombs in Britain. 
Tbe Provisionals have long 
believed this is the way to 
make Northern Ireland an 
issue once again. If they suc- 
cessfully wreck shops . and 

factories “ over the water ”, 
they feel attention will be 
drawn to their H Block 

This Is where 330 Provo 
prisoners in foe Maze Prison 
at Long Kesb are refusing to 
wear normal prison clothes and 
accept normal conditions 
because they arc campaigning 

will win. -The Provisionals do" 
not approve of this.- Above all;' 
they want to discredit Hr. 
Mason. . 

How long they can sustain 
their campaign in Britain and 
whether they have overcome tfcp" 
logistical -, difficulties - in gettfcagv 
back their' men across the Irish 
Sea remSias tb be seen. ~There 
are already worrying signs about . 
foe degree of the effectiveness - 
of the campaign In Northern, 
Ireland itself. ^ • 

They, are not short- of . funds'- 
In Northern Ireland alone in foe 

-iu^ Ids "fofee. companions 
« the unit and; foe into; from 
whom- he gets his orders. - . 

' Although : there^ ’ : .faaye-- been, 
some charges; ! o r’ riionibings in 
foie last few jveeki, no- arrests of 
jtop_ or even middle : ranldag 
members have come 1 to light 
This .iOignlfieant vLast yea/s 
- winter offensive ..earner; to n pro- 
mature 'end when two .‘key 
operatives were '’ lifted.'*- It is 
a foillibg thought that perhaps 
-iMs -.winter foe Proi^iohals 
might have more- staying' power. 




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fefc K- ; V :4S 

Short term National Savings 
interest at record £10.86bn 


Electronic Rentals ups its ratings 

By Peter HhUefl,* Econom ie s . 

■ Comesporwfcmt • . *• \‘ 

SHORT-TERM ... Interest- . rates 
could Jail during' 1979: with 
Minimum Lending' Rate below lO 
per cent by the end of the-year 
•against 12|= per. ? cent ■‘vnovr^ 
according to a new analysis-from 
brokers Phillips and Drew. . ■**. 

The brokers expect that yields 
tm long-dated gilt-edged stock l 
will be highly sensitive, to any 
. downward drift in short-term : 
-rates' ami -could fall to. about ] 
1H per cent by the end of 1979 ; I 
against, about 12] per cent now. 

They- suggest this could 
happen in view of a strong 
build-up in. funds, available for 
investment ■ in' . the hands of 
financial institutions. '* ..., . 

The volume of personal funds 
available for investment, and 
especially those going into life 
assurance and pension funds, 
are likely . to. keep pace next 
year with -.the rise, in the public 
. sector' borrowing requirement 
This is in contest to this 
year when, in spite, of a strong 
inflow Hub National Savings, the 
expansion of the flow into life 
assurance and pension funds 
did not match the growth ip the 
borrowing requirement 
This created problems for the 
authorities In maintaining their 
programmes. of, gilt-edged sales. 

Consequently, the’ brokers 
argue, while this year there 
have been strong domestic 
reasons -prompting 1 the authori- 
ties to raise the level of interest 
rates, there may be scope on 
the domestic front in 2979 "for 
some modernisation , in the level* 
of short, rates -. as funding 
becomes. -Idas- burdensome. 

PM Hips and ’ Drew estimates 
that the funds available .for 
Jong-term investment rose from 
£5.3bn last year to fS-Sm in 
3978, with a projected nse to 
fB.Sbn In 1979. 'Hie borrowing 
requirement; is . forecast to 
increase from £5.Sbn to £7.8bn 
tins year and to £8Bbn an 1979. 

inflatic' . .'ofed investments for 
pensioners helped raise 
National Savings funds by 
£9S.2m to a record £10.86bn last 
month. .- 

The. retirement- ‘-issue of 
: National Savings Certificates, 

! which earned bonuses in line 
with rises in the cost' of living, 
brought in a net £26.6m. This" 
was the fonato best month since 

the issue was launched in 1975. 

The issue's Individual invest- 
ment limit was raised from £500 
to £700 in October, and much 
of the latest inflow is believed 
to have come from pensioners 
taking advantage. 

Total net inflow or National 
Savings came to £66.Sm and the 
rest of the £98.2 m rise came 
from interest and other credits 
to the existing accounts. 

Oil tanker ‘could be 
converted for base’ 

by .our Belfast: correspondent 

A STUDY 1 carried, out by 
Harland and ‘Wqlff.-ihe Govern- 
ment-owned Belfast shipyard, 
has shown that it v wdold be pos- 
sible to convert ah oil tanker 
into an aircraftcatrier for com- 
mercial operations in the North 
Sea oil fields. 

The Belfast company under- 
took the design Study for Sea- 
forth Maritime bf Aberdeen, 
which runs .- oilrig supply 
vessels. Seaforth has drawn up 
a plan izr conjunction with 
Alidair, the' independent airline 
based in Derby, .which is being 
studied by the. .Department of 

Harland and.. "Wolff said it 
was possible to lengthen and 
strengthen the deck - of a tanker 
to take the short : take-off-and- 
lauding aircraft specified. 

Although it based its con- 
version on a ShelLL-dass tanker 
build in Belfast,; the company 
said it was not. "known if such 
a vessel would be available. 

The use of an aircraft carrier 
for direct flights to North Sea 
fields from mainland airports 
could bring substantial savings 
in the cost of moving staff. 



A MISSING WORD resulted in 
Mr. Martin Haslam, a partner in 
the accounting firm Keymer 
Haslam. being misquoted in our 
report on Saturday of the 
Financial Times conference on 
inflation accounting. 

He suggested that the time 
spent debating inflation account- 
ing could better <be spent con- 
centrating on the major prob- 
lems of the business world, 
firstly inflation itself. In our 
report, the word accounting 
was, unfortunately, omitted. 

Food spending a record 
in spite- of price fall 


In. a separate article, the 
brokers . suggest that over the 
next year the profitability of 
exports should be maintained at 
the expense of & slight- fall in 
price competitiveness. .This 
reflects the Government's objec- 
tive of supporting the, irade- 
weigbied exchange rate. .' - .* 

• -The. brokers- beKeve tins is 
unlikely to have much effect on 
.export voflume, . which appears 
to be influenced more' by other 
factors such as quality and 
delivery dates. ■ 

A contrasting view, of interest 
rates comes . from ... brokers 
tie Zoete and Bevan, who argue 
that at best." the outlet* is for 
further- .interest, rate rises, 
possibly ' confined to the.- first 
half of next year, with long-term 
rates rising by more* than short- 
term rates. : .. ... 

The brokers say rising credit' 1 
demands coinciding... with., an 
increased public sector deficit, 
will bring higher interest rates- 
unless the authorities -choose to. 
introduce : . deflationary fiscal 
policies. . 


SPENDING ON fftd reached a 
record level in tbfsjhird quarter 
of 1978 in sj>ite£bf. a fall in 
.prices, accordingy textile latest 
; National Food Survey, issued 
by the Ministry tf Agriculture. 

It shows that Average house- 
hold's expenditure, on- food rose 
to £5.81 per person a week 
during July to September. This 
was 32p a week more 'toan in 
the second quarter of The year 
and 75p more thah ip tfee third 
quarter of 1977. . .. .v *- 

But the' survey's index of 
food prices sfiowei| a Sirop of 

1.6 per cent compared with the 
second quarter mainly because 
of seasonally cheaper fresh 
fruit and vegetables. The index 
of food prices was only 8 per 
cent higher than a year ago, 
while the value of purchases 
was up by 1-L8 per cent. 

The extra spending was con- 
centrated largely on meat and 
meat products as well as fruit 
and vegetables. Expenditure on 
meat and meat products, at 
£1.90 per person, represented 
33 per cent of the weekly food 

Watgi- authority savings plan 

SAVINGS STAMPS at 50p each 
are being .introduced by the 
Anglian Water Authority to 
help cUstiAners pay their water 
told sewerage bills. 

- The itow system will coincide . 
with the direct billing of more customers between the 
Humber and the Thames who 
wifi' pay their rates direct to 
the authority from nex April 
instead .of. through district 
councils. - . 

The stamps will be on sale at 
Post Offices in the New Year' 
and the authority will also 
accept credit-card payments. 

Direct billing, using the 

authority’s new computer sys- 
tem, is expected to save flm. 

Colliery breaks 
record again 

THE 3,760 miners at Sbirebrook 
Colliery, near Chesterfield, have 
broken their weekly production 
record again, producing 30,500 
tonnes in a week, the NGB said 
yesterday. It is tiie sixth Tecord 
in eight weeks by the eolfiery. 

The miners are trying to earn 
as much as possible for 
Christmas through the incentive 
bonus scheme. 

London’s oldest mosaic floor 


THE OLDEST Roman, mosaic 
floor yet discovered- in London 
and evidence: of a big fire in 
Roman times are two important 
discoveries of an archaeological 
dig in the heart of the City of 
London. T .]•. . . 

, The dig has been, undertaken 
by the Museum, of London’s 
Department of- Urban Archaeo- 
logy, at the Watling Court site 
in Cannon . Street destined for 
redevelopment by contractors 
Higgs and Hfll as offices for the 
Electricity ^Board’s . pension . 
;Fund. ■ : - " 

The di& . which 'started. In 
July, officially ends on January 
8. With time r unnin g out Mr, 

Brain ’* Hobley, . ‘time? urban, 
archaeologist at: tote fouseem 
yesterday r made . an .'..urgent 
. appeal^ for to (50 . volunteers 
to help dven the Christinas- and - 
{New Year ; hedidays with ;.the 
final stages of excavation at the 

’L'.r " .i . .-■ 

-■ To date thfi.mfe lias Confirmed 
evidence 'bf the Boadfcean -fire 
in.abpiit 60 AD, the Hadrianfc . 
fire iir ,tSe-:l20s; add tea* -sug.' 
gested 1 a ttito£to ' unknown fire: • 

• in. the: 150s.. '■ V. ; 

- \ It bas alstv produced a .series - 
of Roman mosaic pavements,-, 
"believed- to be-, tire -uldeat dis= 
covered m London. The Roman • 
remains suggtet . ; p.'- series-* of 
impressive, anff . ^substantial" 

; houses,-, probably betongmg to J 
“people, in ' bosihess." along ■ 
what was then the ^ Thames ' 
banlc ^ / 

The site has' also revealed^ a 


. - *. . -.J.'S HOB #1 Kow ledge 

„ Yolnuteers at the archaeological site in the City of liondon 

large' -jinibtor framed Saxon 
House , measuring about 40 . ft' 
by -50 ff with a sunken floor. 
ftuoes of , domestic refuse and- 
food have been discovered oh 
the floor enabling the archaeo- 1 
legists to build up a picture , of 

: tiie Saxon environment. 

:± Above toe Saxon remains toe 
archaeologists have discovered 
mediaeval pits and chalk-lined 

. Volunteers should telephone 
01-606-1933. . ^ 

British Gas orders compressors 

awarded a£3.7m contract by the. 
two gas turbine-powered com- 
pressor sets for installation near 
Wisbech Cambridgeshire. The , 
sets -produce a total of about 
50,000 bp. Each machine com- 
prises a two-stage power 1 turbine, 
fed bjr Hot gases from an aero 
engine-derived -gas. generator, 
driving a compressor 1 Unit made 
by De Laval Stork, In addition 

to' the supply and installation of 
the two sets, GEC Gas Turbines 
■is responsible, for the filtration 
and silencing equipment, the con- 
trol gear and associated instru- 
mentatiom The sets Should go 
into service by mid-19S0- 
■ : * 

Dover Harbour Board has 
awarded a £ 2.5m contract to 
thesRedpath Dorman Long Group, - 

for the design and construction 
* of two twin-deck double-width 
loading bridges to service the 
-new super berths being built at 
' .the port’s Easters Docks, 


The National Coal Board 
announces the award of contracts 
totalling about 1 £8m annually to 
supply, launder and repair work- 
wear ‘ for * 180,000 coal industry 
workers, in England and Wales. 


THE SALE by Lloyd's and 
Scottish for £61 m of its tele- 
vision rental business • to 
Electronic Rentals, announced 
last Friday, marks the latest in 
a series of deals which the 
group says bad taken, its 
television hire business into lhe 
number two slot In the industry. 

Electronic, which operates 
the VisUmhire concern, says 
that this detest acquisition will 
lift its market share from S per 
cent to 12 per cent and create a 
business generating annual 
turnover of about £l00m. 

Visaonhire has been one of 
| the more successful companies 
operating in on industry which 
I has undergone a number of 
upheavals since 1970 — many of 
which have been brought about 
by successive Government 
changes in legislation dealing 
with hire purchase, rental con- 
trols and VAT. 

These changes, according to 
a recent Price Commission 
report — which concluded by 
blocking price rises for Vision- 
hire and a number of other big 
rental concerns — have had a 
disturbing effect on toe rental 
and television manufacturing 

Slower increase 

The latter, prompted by a 
boom in consumer spending 
power at the beginning of the 
decade and the absence of hire 
purchase and rental controls — 
removed in July, 1971 — was 
encouraged to increase produc- 
tion. Almost immediately, 
controls were re-introduced, 
with the birth of varying rates 
of VAT, while consumer spend- 
ing power fell significantly 
following the inflationary effects 
of the 1973 oil crisis. 

The Price Commission report 
pays that toe over capacity and 
low profitability of the tele- 
vision manufacturing industry 
can be largely attributed to 
Government decisions taken in 

the earl y\J 970s. 

The number of television 

sets in use in the UK — 23.5m 
last year — has increased by 
about 27 per cent since 1970, 
but only by about 11 per cent 
since 1973. 

In the intervening years the 
■rental industry has undergone 
a number of changes with the 
larger concerns seeking to buy 
market share by acquiring their 
smaller, less profitable rivals. 

The result »s that six com- 
panies. including Vi sin nh ire, 
control more than 60 per cent 
of the U.K. rental market. The 
outright market loader is Thom 
with a 30 per cent stake while 
Visiunbire. with This latest deal, 
■moves into Dumber two posi- 
tion, on a par with Granada,, 
with a 12 per cent share. 

Visionbire has about lxp sub- 
scribers, about half of which 
have been acquired as a direct 
result of the group’s purchases 
— the largest of which, before 
the present deal, was the 
acquisition of Lloyd’s Sure vision 
from the group’s main share- 
holder. Philips Electronic and 
Associated Industries. 

The rental companies provide 
a very important market for 
UK television manufacturers, 
notably through their overseas 
interests. It is significant that 
Philips has played a big role in 
providing finance for the latest 
Vision hi re acquisition. 

According to the Price Com- 
mission report Visionhire takes 
a minimum of 75 per cent of its 
television sets from Philips, and 
this latest acquisition will 
provide further outlets for the 
television manufacturer. 

The rental industry* thrives 
on technological change. The. 
advent of 625-line transmission, 
colour sets and printed circuits 
and semi-conductors, meant 
more customers flocking to 
rental shops. 

The industry says that tech- 
nological changes create uncer- 
tainty in the minds of customers 
and leads them to rent rather 
than risk an outright, and 
possibly expensive, purchase. 

The added attraction of ren- 
ting rather than buying, is the 
after-contract service and repair 
agreements provided* by the 
rental companies. This may be 
coming less attractive however, 
as the working life of a tele- 
vision set has become longer. 

The Price Commission esti- 
mates that rental companies 
control about 50 per cent of toe" 
total UK television market, but 
concludes that they may find 
it difficult to maintain this 

The switch from black and 
white to colour television sets 
has clearly assisted the rental 
companies, but there is a danger 
that the next generation of 
colour sets will be purchased 
rather than rented now that con- 

sumer confidence in colour sets 
has markedly improved. 

The rental companies arc 
looking at new technological 
advances, such as toe video 
casseite recorder, which they 
believe will boost rental con- 
tracts. Visionhire has launched 
a new Philips video cassette 
recorder as part of its contract 

Longer term, the industry* 
views with some optimism the 
advent of television systems 
such as Prestel — a Post Office 
system which provides informa- 
tion on a television screen via 
a telephone line. Visionhire has 
taken part in the Prestel trials. 

The company has told the 
Price Commissiun that it plans 
to spend about £200m over the 

next five years to meet this 
potential market. 

The Lloyds and Scottish 
acquisition will bring Visionhire 
a further 500,000 subscribers 
and about 500 new shops and 
service depots. The group 
promises some rationalisation 
and says this will mean redun- 
dancies for hundreds of 

In -the year to September 30. 
the Lloyd's and Scottish rental 
interests generated profits of 
about £1.6m, but clearly the 
finance and leasing concern— 
in which Lloyd’s Bank and the 
Royal Bank of Scotland each 
owns 39 per cent — felt that this 
business had too small a base 
to make progress and would be 
better off in a larger concern. 

‘Spread of video cassettes 
could bring £lbn a year 9 


THE UK television rental 
industry could gain ££lbn a 
year from the spread of video- 
cassette recorders, says a study 
by analysts Buckmaster and 

They predict rental incomes 
could reach this level by toe 
mid-1980s, when about half of 
colour television set owners 
would also wish to have a 

In the longer term, if SU per 
cent of television set owners 
were to want video recorders, 
rental income could be £1.5bn. 

After an analysis of the four 
competing types of recorder 
available, the analysts predict 
that most machines rented in 
the UK will be of Japanese 

The two Japanese types avail- 
able in Europe are the Betamax, 
developed by Sony, and the 

Video Home System (VHS) 
type developed by Matsushita’s 
subsidiary, the Japan Victor 
Company (JVC). They both 
have a maximum recording 
time of about three hours, and 
cost about £700 to £800. The 
running cost of tape is between. 
7p and 8.4p a minute for these 
two systems. 

The main European rivai is 
the Philips N1700 which can 
record up to 2 hours 10 minutes 
of television programmes per 
tape at a cost of 13p a minute. 
The analysts say this system 
does not have great rental 
potential because it is con- 
sidered less reliable than the 
Japanese competitors, costs 
more to run, and has a shorter 
recording time. 

These factors have influenced 
Thorn, which has the largest 
rental business in toe UK. to 

transfer its allegiance from 
Philips machines to the VHS 

A fourth system, developed 
by Crundig of Germany, on the 
basis of toe Philips system, has 
a maximum recording time of 
four hours and a tape cost of 
12p a minute. It can also be 
pre-programmed to switch itself 
on and off five times during a 
ten-day period. However, Buck- 
master and Moore consider that 
the system is too newly deve- 
loped to be attractive to rental 
companies at present. 

Their report estimates total 
sales of video cassette recorders 
so far in toe UK. are about 
58.000. By next December, 
they expect the figure to have 
more than doubled to 155.000 
units. Of these, they expect 
more than 100,000 units will be 
of the VHS type. 


Master builders 
by tradition 

The Cubitt tradition for fine civic buildings in and around London and 
other major cities in the U rated Kingdom includes very many 
■prestigeous headquarters for leading companies. Early examples 
are the Cunard Building in Liverpool., the Prudential Assurance 
Company’s offices in High Hotoom and Unilever House on the 
Thames Embankment More recently, New Zealand House in the 
Strand, Berkeley House lowering 16 storeys on the Birmingham 
skyline, and the Pilkington Headquarters at SL Helen's reflect the 
continuing demand for this kind of Cubitt expertise. 

Today, as part of the international Tarmac Group, Cubitts are able to 
offer not only their historic experience but also an even wider 
'ranging availability, with back-up resources capable of matching 
even the most exacting time schedules. Clients who are planning for 
major capital investment in business premises will be ttie first to 
realise the huge potential for cost-saving that this represents. 


Thomey Lane, Iver, Bucks SLO 9HG. Telephone: Iver 652444, 


Cunard Building, Uverpool 

feerkeiey Houses 


How can a 
merchant bank 
help a private 

Do you need to increase your overdraft 
or should you look for an increase in capital? 

Howareyou planningforthefuture? 

GRESHAM TRUST can help. Solving 
problems like this is our business. 

We are a long established merchant bank 
who specialise in financing private companies. 

That's why we ’ll always listen - whatever 
your requirements. So don't be afraid to write 
or ring one of our Directors. 

Why don’t you do so today? 


Where the successful private 
company feels at home. 

Gresham Trust Ltd., Barrington House, Gresham Street, London EC2.V7HE 
Tel: 01 -606 6474 

Birmingham Office: Edmund House. NewhaJI Street, Birmingham B3 3EW , 
Tel: 021 -236 1277 

Peter Whitfield and Bob Tanner 

(formerly of Clubman’s Club and 
Orme Developments) 

have £2,000,000 to invest in: 

0 Managing directors wishing to buy their 
own companies 

0 Companies wishing to expand 
0 Companies wishing to merge with a view to 
early flotation 

Minimum profits £100,000 per annum 

Write Box G2812, Financial Times, 

10, Cannon Street, EC4P 4BY. 

Family Controlled Manufacturing 
Businesses Required 

Capital Transfer Tax. shortfall and succession are all problems 
facing family controlled businesses, and while you may not be 
ready to sell out and retire, you may be concerned to prepare 
for the future. 

As Principals, with broad experience in manufacturing 
Industries, we seek to acquire controlling interests in com- 
panies with an annual turnover in excess of £500,000. 

Please write in the first instance to: 

Box G-3074, Financial Times, 10, Cannon Street, EC4P 4BY. 


Experienced, reputable U.S. manufacturer of special and 
diversified machinery (W-ire Cable and Stranding Equipment, 
Abrasive Belt Machines, Braiders, Plastic Moulding Machines, 
etc.) offers European manufacturers an opportunity to produce 
their products in U.S. for little or no investment, we can 
provide complete capabilities: turning, boring, drilling, milling, 
casting, welding, beat treatment, assembly, etc. 

Write to: 

Mr. R. Martin, Vice President Machinery Division, 
Wansknck Company, 304 Pearl St„ Providence, R.I. 02907 
Telephone: 401/831-1200 - Teles: 92 7517 



T/O £750.000 (75‘» caponed) joed 
products bin weak iMnojemwit hu M 
to orobkHm. £30,000 to £50.000 
additional working capiul nMiled plus 

liwolwtranx. (Very Vlbtantitl cauity) 





No with company. 1979 T/O £130.000. 
About £20.000 iwdad for working 
and further development capital. Again 
experienced managerial help wokomed. 
(Substantial equfty) 

Duke Street Broken Ltd, 

57, Duke Street, 

London, Wl. 

Tels 01-408 2111/01-429 2531 

Superior, seamless, half-hard, 
immediately available 

Written Inquiries, 

D. Krenler, Esq., 
Hubertusstr. 15 
D-5000 KSIn 71 



M. City Road. EC I 
0J .628 543US. 7361. 9936. 



for next 12 months to purchase 
Building Land of same value, 
secured on land. Attractive 
return, an advantageous basis 
from a tax point of view. 
Write Box G.3069, Financial Times, 
10, Cannon Street, £C4P 4flY. 


An opportunity hat arisen for in 
ewataluhed com piny fa this field to 
on tar Into a Johw venture with * 
local company in SAUDI AES41A. 
Interested partial are invited 
to contact; 

AWak Limited. 15 Bond Svaet 


$*. Holier. Jersey. C.J. 
T-riu: 41123 - Tel: 0534 74739 

Modified for European, African, Near 
and Far East Exciianges.- Multi Voltage 
model! available for world-wide UM- 
ftriecs £1 75-4400. 


Acorn Scndioa 

ByMd Garden*. London, SW13 
Tel: 0l-7>fl 0287 - TbIm: 25BS7 



Travailing London. Zurich. Geneva, 
Ftm ikfwtc, in nM-january with Port- 
folio of western USA Investment real 
outt. Contort: 

300 Garden a f the Gods Road 
Colorado Sdrtns*. Colorado 80907. 
USA - Tel: 13031 5999696 


He 4i interested fa acquiring an equity 
share, either m whale or m pare, of 
an exiting buelneti preferably In the 
Kent/ Sussex /Surrey area. 

Write Box C.3083, Financial Tlmci, 
10, Canaan Street, QT4P 4flY. 

£1 A WEEK F 0 REC 2 addreu or ptom 
messages Combined rates + t«e* 
under £3 a week. Prestige offices near 
Stock Exchange. Mwsaoe M KKterj Inw- 
^aSonoi OI-SI9 0BS8. Tele* 8*11725. 
8 rWW)I. The newjkrtter ttat rtatnn eU 
cwitai » smoti husineMev ln«ctor« or 
entreoreneura, Ring 02T2 37122. 
rent contract* o* 1 nlatts seek* 

Investor. Tei. 01-957 5W7, 

DEAO STOCK WANTED. Live .Cash Paid. 

W.™" Sut^-faonfafv 

details and PREf COPY "5131*®, y/l? 
B lorn held Street, London. EC2M 7AY. 

25 years, seeks Mult* end Mrtfclpo- 
tl on In email Eng, Company. Strict con- 
fidence- Base G307S, Financial Times, 
10 Oannon sweet ECaP 4BV. 

FiiJdX, w. Germany. Tol. 0601 -91770. 
Telex 49921. 

astral. seeks oannershmiassortantm 
with existing bosJnes* or business Idra- 
EKportence and preterence lor P.R.. Salas 
end Marketing. Writ* Bex G3t»l. 
Financial Times, 10. Cannon Street, 
reap asr. 

ikinal Collection for Private Sale. TeL 
0624 M26U. 


We would like to make available the benefit of substantial Tax 
Benefits— by way of group relief — to a corporate UJK. investor. 
It is unlikely that our proposal will be applicable to any 
Company/Group of Companies, with annual declared profits of 
less than £1.5m. 

Interested parties are requested, in the first instance, to contact 
the principals’ U JC. Tax Advisors: — 

Geoffrey Newman & Partners, 
Victoria House, 

Vernon Place, 

London, W.C.1. 




For further imormatiDn contact: 
1C. Dean, 

Breeds Place, Hastings, 

E. Sussex. 

Tel: 0424-430824 

Our business is 
merging your business. 




with minimum capital of 

to invest in *he leuure/enceralnnenc 
industry- Return of capital, plus 
itinera it *r 22% p.a. over 2 years. 
Ml funds wM be held in trust by 
soHckort end only raloraod against first 
mcrtwfiv on eitbrtsntlsl property In 
London, 5W1. 



123, High Street. Brentford, Middx. 
Telex: BBt4552. 

Private company clients wish to. acquire land 
with planning permission for commercial, indus- 
trial or residential use. 

Development land tax liabilities taken over. 

a company wrrn 


Write in confidence to: 

The Compendium Trust Company, limited, 
P.0. Box 316, Portman House, 

32, Hue Street, St. Helier, Jersey. 

and with offices fa London, and with 
Indian And South-East Asian comtoetton* 
and ibU to provide finance, presently 
miinlf interested In import/ export and 
safes of hand tools, ‘ cotton yams, 
canvas, etc., anxious to expand into 
other hrm sad seeks enquiries from 
firms/indivirfuafi who wish to expand 
and where combination may be of 

Write Box G.3072. Financial Times. 
10. Cannon Street . EC4P 4BY. 






A maU group id [easenud 

distribution depots conveniently 
located in England and Scotland can 
shortly be made avaitaM* with 
vacant possession. 

Average state of each approximately 
38,000 sq- ft with ancillary offices. 

An excellent company with large proprietary film library, 
marketing to international education, training, and television. 
Sales in mid-six figures and profitable. Long term Beveriy 
Hills office lease. . Capable staff. Package includes beautiful 
residence with 3 bedrooms, 3 baths, pool, complete security 
system, short walk to ocean. Excellent price to qualified 
foreign buyer. 

Write or call President: P.O. Box 5001, Beverly Hills, 
California (213) 2784996. 

Reply In oonfldBK* to Im G30S4, 
Financial Times. 10 Cannon 5 caret, 
EG4P 4BY. , 





1102 Walnut Bend, Houston, Texas, 
77042. Tel: (713) 6&U9IV 

Agencies wanted for Far East 
by Incfian-Brrtisfi company 

with excellent connections and offices 
in India. Singapore and London, with 
own stafT and seKmg engineering and 
textile products, seeking new lines 
particularly fa enpneerinfi toots for 
sale in Singapore, Indonesia, Malaysia, 
PhTtppinM and Thailand. 

Write Box G.307 1. Financial Pinei, 
10, Cannon Street. EC4P 4B7. 

as going concerns due to change 
in Group investment policy 


Well known retail oriental 
carpet company with associated 
manufactured carpet wholesaling 
and contracting company. 

Certain experienced staff. Excel- 
lent Central London premises. 
Lease 13 years unexpired. 
Audited accounts available to 
39th June 1978. Net asset value' 
plus negotiable goodwill price. 
Preliminary enquiries (Principals 
only) to Companies’ Auditors — 
Box AY 860 

ReyneH’s, Eldon Chambers, 30/32 
Fleet Street, London, EC4Y 1AA. 






Approximately 19,000 square 
feet, 14 machines, good order 
books. Reply in strict confi- 
dence, marking envelope Private 
and Confidential to Company 
Secretary Box G.30S2. Financial 
Times, 10. Cannon Street, 
EC4P 4BY. 

Up to £1001100 available for 


No Endowment Assurance. 
Commercial Funds also available, 



Boat Manufacture 
For Sals 

Writ* Box G.2582, Financial Tunes. 
10. Cannon Street. EC4P 45 Y. 

specialising in che h^e of larga Dump- 
trucks. wish to open negotiation* to 
discuss the possible safe of Pirt or 
whole ef this company- Reason lor 
isle family problems. 

For further details write Box G.3035, 
Financial Times, 10. Cannon Street, 
EC4P 4BT. f 

Good Order Book. 
Principals only reply to 
Box G-3Q73, Financial Times. 
10, Cannon Street. EC4P 4BY. 





Factory reconditioned and guaranteed 
by IBM. Bay. save op t a 40 per cent. 

Leise 3 years from £3.70 weekly. 
Rent from £29 her month. 

Rent from £29 Per month. 

Phone: 01-641 2365 

Large D/F main road premises. Out- 
goings mtataral. B.Ssc. Agency. Great 
potential. Goodwill, etc., £11.000. 
Lease 16 yean. Genuine reason for 

Write Box G.3077, Financial Times. 
10, Cannon Street, EC4P 4B7. 

Well .managed and profitable. Located 
South of M4. Turnover £175.000. 
Profits before Kr/Tax £36.000. Large 
export potential. Assets Include free- 
hold land, private accommodation, 
modsrn plant and equipment, fuff 
order bock. Owner 'retiring for health 
reasons. Offers over F200 000. 

4 Bank St.. Worcester - 0905 22303 



Consultants undertake 'one-off' assign, 
menu which may cover production, 
skies, finance, etc. Whole Factories put 
together, home or abroad. 


Top St, Elston, Newark. Notts. 

Tel: 0636 85217. Telex: 3776*6 






showing minimum net pre-tax 
profits of £50.000 

All repliH will be treated in the 
strictest confidence by principals only. 



Over 400 sets in stock 

Bay wisely from tfcc- manufacturer* 
with fail aftet-saWs fcrnrte*. 

01-986 8231 
TdiXi 897784 

B.I.BA, Members, £30,000 
Brokerage Mainly Commercial 
Accounts. Two Principals 
would like to bear from simi- . 
lar or smaller concern with a 
view to Merger or Purchase 
for Cash and/or Equity. 

Write Box G.3076, Financial 
Times, 10, Cannon street, 
EC4P 4BY, 

Write Bex C-3079, Financial Tfmei, 
10, Cannon Street. EC*P 4BY. 



Write In confidence to: 

Box GJ08S, Financial Times 
■ 10 Cannon Street, EC4P 4B Y 

USA', Zuber GmbH. Box 1140, 0-6400 

Web. Swure—ffMi Germany'* brtioest 

t“: ogSI 

FoSu^’lIFT* T*RUCK S 3ALZ. We h*VO tt 



least 00 nwcfiines » choose from. 
UM sent upon reaucsc. Trade and w- 
Hrt enquiries welcomed. DalivwM* 
arranged worldwide. Large reduction on 
Chill' mirchates Flnancr arranged, 
fllrnrtnghun Fork Uft Truck Ltd.. Hxms 
Road. Salttev. Birmingham, BO 1 SO. 
Tirt. D21 SZ7 S 94415. Totesc 337032. 

Established firm of City . 
Insurance Brokers are seeking. so 
purchase Lloyd’s Brokerage 

Write Bax GS0B6. FInonetef Times, 
f 0 Cannon Street, EC4P 4BT ■ ' 




on pay 


8y Alan Pike, 

Labour Correspondent 

Public--. Employees* ■ executivfr 
has approved a programme or 
selective industrial action aesross 
a wide range of public-sector 
jobs to follow the national day 
of action on January 22. 

1 NUPE members among local 
authority manual workers, hos- 
pital ancillary staff and mem-' 

I bers in universities, waterworks 
and the ambulance service will i 
be called upon to join the.| 
| action. 1 

“The. stage is sow set for a.I 
major confrontation in the pub- 
lic sector unless the Govern- ; 
meat is prepared to move 
quickly and decisively to end' 
low pay for the nation’s under- 
paid workers,* 1 said Mr. Alan' 
Fisher, NUPE general secre- 
tary, yesterday. 

The NUPE executive 
endorsed rejection of pay offers 
within the 5 per cent guide- 
lines to local authority, hos- 
pital and university manual' 

NUPE is setting up a dispute 
fund to be Jaiincbed with a 
“major contribution” from the 
union’s central finances, and 
supported by a 40p-a-tweek levy ■ 
on members not involved Jo 
selective strikes. > 

The -threatened strike action 
among: local authority manual 
workers and elsewhere in the 
public sector is expected to 
dominate talks between Minis- 
ters and members of tbe TUC- 
Economic Committee today. In 
spite of removal of sanctions 
from the Government's pay 
policy armoury, "Ministers are 
determined to hold the line In 
the public sector where they 
have direct influence. 

There will be discussion on 
whether the idea of {public- 
sector pay ■comparability, 
suggested la tbe agreement on. 
pay policy rejected by the TUC 
General Council, might hr 
developed further. 

provincial jotimaKsts* strike* 
now: id its third week, will take 
place ; • between - ihe ' 'National 
Union' - of Journalists and -the . 
Newspaper Society today. _ 

■ At: the same tinm the -union' 
will be appealing against last 
week% High Ckrart injunction 
erdojicg it to lift an tost nic- 
tioh vto Express : Newspaper- 
journalists to black copy from ^ 

Erefls Association news - agency. • 
The appeal is being" supported.. 
fby : thie TUC. 

! . This Newspaper Society, which . 
l represents provincial employers, 
i .has /'offered increases worth 
nearly 9 per cent and says that 
it' wffl resume negotiations if l 
there^is a return to work by: 
the 9jOOO strikers. However. r the- 
unfem is refusing to call, off the-, 
.strike as a conditions of restim- 
ing^iiegotiations. ' 

?: : -.T^day T s talks will thereEpre he 
bn > non-negotiatitng' baiis he^ 
"iwe^p representatives. Of .each 
sidd* •• •’ 

' S&. Denis MacShane r . NT7J 
■president, said after the in- 
formal talks had been: agreed: 
“This is a cautious step tot- 
wa ixi. We hope it will lead to 
proper negotiations." . The 
union's dispute committee. wfU 
be 'meeting later today toreview 
the outcome of tbe difiCiissiODS 
with: the employers., ‘ ' 

V The NUJ said yesterday that 
7i>:members of the National 
Graphical Association at the 

Kentish .Times' • Hid - ; been, 'dfe* - f 
mijssfr i for- 1 JgfadBfc -to hanme i- 
material tor two editiots Where > 
distritc editors ^are ; nn’ystrike: -: 1 
NX3A meinbets have 'been 'ih- i 
structed to handle only editdf’-s * 
material during the- dispute. / 
journalists on the ' Daily j 
Express '. yesterday rejectai."' a f 
motion to efid the blacking of * ■ 
Press ^Association co^y . by 63-5B. . ^ 
The .chapel CofiSce. idaoA section) . :^ ’ 
then voted td 'continue refuting V 
to handle rite material penffing f 
the dotcome (ff tdflay’s Cpurt of > 
Appeal, hearing. I 

. At the stari af toe ^ ) 

journalists ■strike’", ‘the : NtJJ- ‘ 
executive insfencted staff at tBe | 
PA to stop work and 
berg on National new^paft 
and ■ 'to broadcastinB 1 not-,- to 7. 
handle material, from - the j 
agen py r ." in; the High Gourt bn * 

uQviuva *« vn - i 

. Was ; hot‘ covered . by toe . clause 4 
of the Trade Union ‘and Labour { 
derations J -. Act " relatih8;^to_^ 
sympathy 1 

... 5imes .NewapapeiS;^^ 
Eoent" said; last night that it Had £ 

now ' sent ' dismissal norides .in ! 
m6re : • than 3JXR) Tif^1ts : 

employees." Anotoer t^DO 
who Have . signed new j figtee- 
-rnento Srith the company, -afe. - 
hot being' dismissed Mr<. X)u£e - . 
.Hiiasey, jnaiiagujg director^ ptid. i 

had proved a - fruitless . «m- * ' 

cessxdn ” w i tubh 'h£d oo&£ls3fr ‘ . 1 

Chemical engtoeers told 

-join a trat 



• Mr. Anthony Wedgwood 
Benn. Energy Secretary, is ask- 
the Cabinet to take action to 
: remove the anomalies between 
atomic energy workers at the 
I United Kingdom Atomic Energy 
1 Authority and British Nuclear 
I Fuels. 1 

Both groups of workers have 
rejected offers of 5 per cent, 

I "but unions representing the 
4.500 UNKAEA workers called 
for a meeting with Mr. Benn to 
I discuss the differences In pay 
between tbe two groups, which 
the unions estimate averages 
about £8 a week. 

Mr. Mick Martin, public ser- 
vices' national secretary of the 
Transport and General 
Workers’ Union, told Mr. benn 
that if a satisfactory agreement 
was not reached there could be 
“serious trouble” in the 
country's nuclear plants. 

The unions have claimed pay 
increases for craftsmen of 20 
per cent, with pro rata 
increases for other grades, 
plus a reduction in the work- 
ing week, extra holidays and 
other benefits. 

ALL MEMBERS of. the Institu- 
tion of Chemical Engtoeere:ha*e 
received a letter from their 
[.president, Mr.-J. M, ‘ Sdlbett; 
suggesting that they' join .ah' 

[ appropriate trade union if . they 
( have not done bo,^ ; v.t . r X 
-..- Staff in the chemical and 
process industries . are being 
advised to join ..the Assoa&tdji 
...of ^Management and~ :Prof 
•aionbl Statffe, and engineers to 
■join thfe fmgineers* and- Man* 
agers iAsswaatiod: : 
; The ‘ preiideat 'says- 4haf 
because neither %a&Bo&ati.o&. 'Ss 
/established in. ch^nical ' engtov 
eering contracting^ no sperifie 
advice on umbn Membership' 
can be given to. Institution mem- 
bers working in that^pector. dt 
industry. "C? V, - , 

The tnstitution’S ceptral cquhp- 
cll believes that trade^union 
membership should be encour- 
aged. • y. 

- fir: Solbett says that toe ' role 
of the. unions has widened, ’par- 
ticularly after ' toe . 5ncreas»: to 
legislation, affecting industrial 
.relations.'. ■ S ■ 

• Unions can now influence 
decisions ^affeettog toe : status 
'"and effectiveness of professional 
engtoeera,- the institution says. 
A ; Seven yearir ago toe tostitii- 
..noa’s icoundl; suggested '.to 

- .members^ to.. -.private > industry 
. thaa ^toey consider joining' »a 

union 'and the recommendations 
refiecti a~ bardeoing^of that 
•riew. Engineers and Managers’ 

- Asfi^afiott hre -toW ?rMr-‘ -Eric.' 
Varfey; the industry Secretary. 

cariior; building . add 
cpnstotan^ wwrtc,'' :- = - : 

■ It also-says that -toe Defence 
MitffiEtry sho ul d " assisiLBritish 

Leyland wptki 
policies of ‘job 




to settle 

By Our Labour Staff - 
BOOT AND shoe makers belong- 
ing to toe National Union of 
Footwear, Leather and Allied 
Trades have accepted a pay and 
productivity offer worth 7.5 per 
cent under stage four of the 
Government's pay policy. 

The union and toe employers 
represented by toe British Foot- 
wear Manufacturers' Federation, 
will meet separately today and 
are expected to ratify the deal, 
which ' both sides believe is : 
within Government pay guide- 

Adult workers will receive an 
overall Increase of 7.5 per cent 
including a self-financing pro- 
ductivity scheme estimated to 
give about 2.5 per cent The . 
deal will be backdated to , 
September- 1. 

The agreement is to run for 
18 months, with cost-of-livtog in- 1 
creases next September and the 
following Warch. A further day's 
paid holiday will come into i 
effect from next September. 

The deal will increase the , 
Industry's minimum rate from I 
£38 to £42.50, payable at the 
age of IS. I 

The 50,000. footwear workers I 
balloted on tbe offer, which the . 
union recommended. The onion 1 
warned of severe hardship in the ' 
industry if the deal were re- j 
jected. 1 

WORKERS at Leyland Vehicles’ 
Lancashire 'plans rejected" the 
company’s proposals - yesterday 
on investment and • other 
strategies, .which they claim 
could mean' large-scale' redun- 
dancies, and called for a meet- 
ing with the "full -BY board, 

A mass toeetitjg at Leyland 
of toe truck and bus. division 
workers unanimously supported 
tbe unions’ alternative strategy, 
which is" opposed to job- losses 
in the division. r -- 

They approved a-more to see 
the full BL board, chaired by. 
Mr. Michael Edwardes. 

The Leyland Vehicles workers 
feel that the company's plans, 
could mean up to 900 redun- 
dancies in. the nekt 12 months: 

Mr. Lett Brliidle, works con- 
venor, said, that the company 

hoped to reduce fee number of 
jabs at. tbe Lancashire -plants 
bar n atural wastage-V . - ' 

-■TShe-.wrik totoe 'jwas • ** not 
interested/ in - toy talk of , job 
losses.” Leylahd Vefijctes;'bad 
been oommercla-Ky . vitote, . and 
would continue to be. . - \ - 

Jf Investmetft JwsB ^ut the 
dmstorr would nbt-xematn. com- 
petite. -' The tirade rumons 
recognised ' tfew- ■ the ■ division 
fiaced lunaameidal - proWeans, 
. but believed toatr these eoulfl be 
ptoperTy met .onjy.if tackled- iri 
a bold way. -■■ 

■Mr. BrimBe said feat if the 
ixuuui side failed <tp get satis- 
faction from a meeting with the 
BL Board: on the 'Strategy &r 
Leyland Vehicles, it would take 
its case to toe National Enter- 
prise Board. , .... . 

Management cMef wants 
unions to modernise ■ 


TRADE UNIONS ‘ should be 
encouraged by ■ tnanagement to 
improve. organisation . and 
modernise their constitutions, 
says Mri'LesIje Tolley, chairman - 
of the^ftritlsh . toktitute.- of,: 

*’We -need _well-argarused, 
objective " apd reali?tlc trade 
unionism, and we must accept' 
a properly baitoced - power of 
trade unions.^ be "said.' But - 

we will not get tois while it is: 
so easy: for such power to be 
abused, ' and -. sometimes used 
against -the national Interest” .. 

Speaking at-' the- institute 
Lincolnshire and South Humber-. 
side branch "last- night; Mr.-:. 
Tolley told members that many- 
requirements he outlined;, 
including,- worker participation 

at plant rather than board level, 
and- totredhcEiou of incehtive- 
based economies, . would take 
time ■ ' ■ ' ■ 

Meanwhile, management could 
’miiiiBiise tofidstrial.and service 
disruption, by organisation of 
.comptoies tod operatiods. - 

Unity call ‘ 

THE' UJCs . six' "accountancy 
jMkties;- ^tiould' .move . towards 
eventual . unity,. . Mr. . Edmund 
Gibbs, president of the ASsocia- 
txoii of Gertified Accountants, 
t<dd, the . association V : tormal . 
din her last night. . . '■ : 

Plessey men 
back at work 

COMPANY DIRECTOR with Umtwf Funds 
araitabie wl&lies eo buy snr»R Msnafac- 
turmg Cowoariy with potontW. Write 
Box G.SD7B. Financial Tunes. 10 Omi- 
W Street. EC4 B 40V. 

ADYERT1SCR sich Company nmed In 
Fumltoro e r Industrial ClotMnfl Ma mi- 
ll cturlno. Any uxc or company con- 
xiderod. Wrlle Box C.3070. Financial 
Ttmn. IQ Cannon Stroec EC4P 4BV. 
Company For Sale, with Turnover in 
«««« M £400.000 and good profits 

record. Write to Box G.3069. Financial 
Times, to Cannon Stem*. EC4P 4BV. 

THIRTY' maintenance electri- 
cians, who have been on strike 
for five weeks at Fiessey’s 
telecommunications plant in 
Edge Lane, Liverpool, over ‘a 
manning issue, have returned 
to work. 

L For advertising detail pi^Se ring- ! 

. SO0O:Ex&i; im) - : ' 

. Management and workers 
have now settled the dispute. 
Production of telecommunica- 
tions equipment was not 
seriously affected. 


. 7/ : / ' • : .bfferta tb^ piiblic^ 

. PtT 

Is a=i 









• v ^«, 
v, Xv -S 



. i 


Tuhfes^Tuesflay Dumber 19 1978 

'S.'S*'*" ■ ' ' 


C.\ 5 . 

•: 'A< . 

; -v-H-c* 

. ‘ ■•> 

".. S 

ie union 


1 >r j- 

;ob loss 

n r 






data fast 


AS DISTRffiUTlSD computing will still be cheaper for tli use 
crows— and k is growing very who have a targe volume of data 
fast — £0 the effects of. the to exchange aH the time, with 
proper design of the .coin muni- the ' ordinary!-' 1 telephone net- 
i cations; networks used by the .-works :sooring£Xor :] Ight usage, 
r computing community become there is - still 'wide area in 
more far-rea,ching. , Packet- between those ^extremes 
switching the method by which 

all information rent over i. net- 
work is split up into " burets " 
of dpta in a fixed '-format, enabl- 
ing the wholejsy 6 teitt tofuniiwi 
without .overloading lor-Jaordi-. 
n ate Queueing, will undoubt- 
edly become .one:- of - the 
preferred , systems.; for. the 
future! : ! 

Of considerable. . significance 
lo users and potential users of 
data transmission networks is 
-the- -recently released report on 
packet switching by Logics,. 

which' .paritet ,. -Switching offers 
advantages:. ’ -.-7 ’ •.> ^ ■ 

1 CcmmumcatiorLbetween users 

of 'a'packet switched $ysi em as 
simplified by its abliify to pro- 
vide. asymmetric 1 connection if 
tbe data rate in L Qhe-:dlreciinn 
greatly exceeds that- in the 
other.. Thus it adapt 1 ? to iho 
data rate required without extra 
cost to the user: -_ r >• 

■This flexibilftyis-reflecieil in 
costs and it is generally antici- 
pated that, 'users will pay a 
monthly connection..' charge nr 


Checks for roundness 

A MACHINE with an integral 
micro-computer and polar 
recorder which provides for 
detailed analysis of roumlness, 
squareness, flatness, parallelism 
and skew has been launched by 
C. E. Johansson, 66 High Street. 
Houghton Regis. Dunstable. Beds 
LU5 5B.I (Dunstable 6SISI1. 

Turntable accuracy is ±0.001 
mm, and automatic centring 
eliminates the time consuming, 
selling-up stage, says the maker. 

Magnifications from 50X to 
JO.OOOX are provided, and direct 
digital display- of peak to valley 
height is given. So too is the 
offset of the true centre from 

that nf the least squares circle, 
and Lhe angular position of this 
offset can also he displayed. 

The lompany has also intro- 
duced an instrument called the 
lntexonieier for internal and 
external measurements of up to 
2l5m>» — and even beyond that 
with appropriate extension 

This has twin jaws, one spring 
loaded whose deflection is regis- 
tered f<n a Mikrokator dial 
indicator, the other lockable at 
any position along, a hardened 
and ground tubular shaft. 

The jaws are designed for 
precise measurement of internal 
and external dimensions. 



Filtration Et Separation 



General industry 

K>weB generation 


Ltantnsam. Rmycfcn. 

MW Sam Tel <0443 1 2230{XL 


Data from two shafts 


of fire at 
gas plant 

.which draws attend on io lh& minimum rental.- buitth a 1 after 

fact that public packet switch- 
ing networks will offer users 
large cost 1 savings in certain 
areas. . ■ 

In. Britain, such a service is 
due to so live in 19S0 : and ser- 
vices already are available. in 
the U.S. and Canada and are 
planned; for Japan. . while; the 
French Transpac system should 
became available: during 1879. 

Leading users. - in - various 
countries are setting up thei.r 
own private networks, making 
use of public networks for part 
of their traffic. Citibank in the 
■U.S.; for instance, has. set up a 
SLSm link system of its own. 

this, user' costs Aril! depend nn 
the volume of data sent through 
the network and will . generally 
be independent of distance. 

This is extremely : important 
where users need ■ to transfer 
relatively small! amounts of in- 
formation over long distances. 

• Quality of service .will be much 
higher, parti cv&riy Important 
in data handling, and 
while special quality leased 
lines will achieve "one error 
in 10m bils t = s ior: fast oun- 
mum cation between com- 
puters. the rate- should ho one 
hit in a billion. '•..That can be 

Custers Hydraulic 1 !, part of ihe SGB Croup, 
has designed and built' this self-propelled 
hydraulic access platform for railway mainten- 
ance work. It has entered service on the 
railways in Belgium and is being used for ser- 
vicing overhead electric cables and bridge 
repairs. 11 raises a payload of 2G5 kg to a 
maximum height of 13.6 metres with an out- 
reach of X.5 metres. The boom system rotates 
225 degrees clockwise or anti-clockwise and the 
work cage rotates independently 90 degrees in 
either direction. Under its own power it 

(ravels at 5 kph lowing 15 tons. . It can he 
driven backwards or forwards from either the 
cage or the wagon- No outriggers are required 
for any boom position and power points for 
electric and hydraulic tools are fitted in both 
cage ami wagon. The boom platform can track 
sideways while the cage is moving to negotiate 
overhead obstacles. Drive, hydraulic power 
and 220V DC -current. arc supplied hy a 54 hp 
diesel motor. When not in use the. unit folds 
daw n and can be hauled at normal speeds by 
a locomotive. 

KITTED with two independent 
transducer amplifiers, the DFM7 
digital tachometer from Control 
Ability is able to monitor two 
separate shafts and provide 
alternative indications without 
externa! switching. 

.Where two measurements 
have to be made the unit can 
offer significant cost saving com- 
pared with the installation nf 
two separate channels, mechani- 
cs 1 or electrical. 

"Ratio measure men I Itetween 
Ihe two inputs can also he 
marie, and ihe results appear on 
a bright ISnun LED display. 

Inputs may be derived from 
magnetic, inductive or photo- 
electric transducers. Amplifiers 
and power supplies are self- 
contained and the unit operates 
from the mains or from 12 volts 

AHk* iii operate over the lem- 
peratiirp range 0 to 60 deg. C. 
the DFM7 measures 96m m 
square hy 150mm deep and 
weighs 1 25kg. 

Cambridge Street Works. Cam- 
bridge Street, Creat Harwnnri, 
Blackburn, Lancashire B£6 7BU 
(0254 SS6RS5J. 


More power for cleaners 

while in Holland. the Rijks- achieved in packet-switching by 
walersta&t Is spending $2.5m. including an errbr. ^checker in 
Logica's analysis : M charges each packet of a' message, 
fnr such" systems as - The Further fromALpgica ar 64, 
Transpac one mentioned above Newman Street sX^ndon WIA 
shows that while private circuits 4SE. DI-5B0 836i: : 


Accuracy retained logger 

GAUGE BLOCKSr.prodticed from 
tungsten carbide— ^as - -.distinct 
from their 1 “ordinary**., .steel 
counterparts— may -demand* an 
initially higher capital outlay, 
yet prove lo have a lower effec- 
tive cost over a longer service 
life, says Yorkshire.. Precision 
Gauges, Hartfield, near' Doncas- 
* ter. DN7" 6QF (0302-840303 ). 

..Despite the - utmost care and 
cleanliness, steel; gauge blocks 

can wear. undersize : ^a three- to 
six-month period. 1 in ,L enginoering 
plants which employ abrasive 
grits and grinding. Wheels. 

By comparison; {teys t be cmii- 
pany, tungsten carbide blocks 
have been used fort Wo- to three- 
year periods andf.fitil] remain 
within Grade 0 tolerance. This 
represents a usefuJJifft of six in 
eight times for a'jirigfr two in 
three times that of steel- 

FOR THE first timr in 17 years, 
a Danish company which claims 
to lie the largest manufacturer 
nf industrial suet inn cleaning 
equipment, has launched a new 

Customers are always looking 
fnr more power, says the UK 
subsidiary of Niifisk. Newmarket 
Road. Bury St.- Edmunds. Suf- 
folk 1 0284-63163). A change in 
turbine design — giving an 
increase in suction power nf 50 
per cent — satisfies ibis particu- 
lar rcouircment. says the com- 
pany. but many other criteria 
have been considered in the 
production or the new machines. 

Novtlamage can arise due to 
a blocked up suction opening 
because if the motor were In 
gel ton hot. a patented thermo- 
valve works in conjunction with 
an opening in (he turbine hous- 
ing to let in cooling air. While 
the valve is open, suction power 

is reduced by R Jo in per rmt. 
but after a -suitable ■.-uniing lime, 
the valve can be pushed closed 

Constantly aware thai the 
cleaners do much service in hos- 
pital environments (the com- 
pany claims that 65 per cent of 
hospitals in the UK use its 
equipment), noise level of the 
new rangp has been kepi down 
despite its highly increased 
suction power. 

Dust capacity has also been 
substantially increased because 
of a larger filter area and extra 
space in the lower part of the 

Although generally used in 
conventional industrial loca- 
tions. more unusual applications 
for the clpaners are their opera- 
tion in reptile houses and col- 
lecting gold dust lost in proces- 
sing false teeth. 


No need 
for a 


Detector in kit form 

A DAYLIGHT film which will 
not fog n»<r suffer any other 
damage from exposure to normal 
room lighting for up to of» 
minute? is now available from 
Agfa-Gevaerl. 27 Great West 
Road, F.rcmfnrd. Middlesex. 

FLAMMABLE ' gases ran he 
ddeclcd at 20 per cent of lhe 
lowest explosive conrim l ration 
level with a leak detection 
system offered by ITT Controls 
(Maclaren Division) in kit form 
for easy installation. 

Tli* detector cylinder is 
mounted on a east hexagonal 
enclosure which is certified gas 
light and inn tains the electrical 
connections for the sensor. 

EASEEFA approved. Ihe 
Pellistor sensor consists of a 
heated platinum wire encap- 
sulated inside a refractory head 
catalyst; the presence of a com- 
bustible gas, calalylically 

oxidised nn the head's surface, 
raises lhe temperature and pro- 
duces .1 resist a nee change in the 
wire which is a measure of the 
gas concentration. 

The control box is a two-part 
const ruction — a base for wall 
mounting and mains connec- 
tions. together with a top section 
containing the electronics. 
Modular construction reduces 
maintenance costs. 

When the pre-set gas limit is 
reached alarms can be sounded 
and shut down of plant achieved. 
More from 333 West Street, 
Glasgow G5 SJE (041-429 2191 >. 

FIRE prevention devices at the 
new -gas processing plant now 
under construction for Shell 
(UK) Exploration and Produc- 
tion ai St. Fergus, Scotland, are 
lo be provided by Graviner. The 
Ral-ph M. Parsons Co. has 
ordered lhe equipment on 
behalf of Shell /Esso. 

Areas to be protected include 
the main control complex, the 
main suh-slalion, three elec- 
trical sub-stations and four 
turbo-compressor installations. 

The equipment will include 
Sword flash ultra-violet flame 
deteciors. smoke detectors and 
fixed tempera lure detectors 
hacked hy a total flood Halon 
extinguishing system. 

Graviner, which is a member 
of the Wilkinson Match Group, 
has its headquarters at 448, 
Basingstoke Road. Reading, 
Berks. RG2 UQD (Reading 

The Li lex I)L 510p contact film 
does nul incorporate a coloured 
tiller layer lo provide resistance 
To daylight. sa>5 the cnnipanj. km 
there will h L . no contamination 
of the developer even when large 
quantities need to be processed. 
Il can be processed using the 
dish method or automatic pro- 
cessors. using lith or contrast 
mclol-hydroquinone developer. 


Will make 
a good 

yAtL“*? ni 5 ‘bickness gauge connection 


Slitting and slotting 


DESIGNED TO carry out skLUmg spaced, depending' wm 1 t&r -width 
i or slotting operations of .com- of cut required, or the /type of 
f ‘ portents which, are usually diffi- operation. For^exaingte. -the two 
1' cult Uo -locate. and clamp..-— for 1 Made method can b| spaced to 
■' example:. '.Steel- or ..cast-"- 'taut remote a -vride'seeftfente or,*. pro-. 
{ sleeves,- jedUets.r uinsr «nd. -coils- vide a doable operation, 

\ — is a new type. of sawing unit iThe machine Abused on a. 
' .by Rivers Kasto. • ■ . ... standard juOvw'KasLb -mod*l 

t. The fixtare to locate and 1 damp. “-* * “ E1 “ 

|. ithe . cousponents can he J de- 
t signed according to the shape or 
| - sue of /the worfepiece entneerned 
and can be manual or . semi- 
automatic with hydraulic- clamp- 
ing in operation. The machine 
bow can be equipped with one 
or two -.saw-blades, suitably 

Press speeds up baling 

and- his o' range of cuttih;. 
speeds to suiLvarious materials, 
plus variable fiitting pressure. It 
as supplii^l' complete . with 1 
integral npd rculating coolant 
system and; machine base. 

Rivers Jf'JHacbaoery. Winnalf, 
Winch e^r S023 7RX. Win- 
chesterC40962) 60371. 



Prototype boai’d idea 

BALED METAL scrap should 
cost less in transport from site, 
and command higher prices in 
the scrap market, if processed 
with Its 2IISL00 range nf presses 
soyS Planters' of Nelson Street, 

In order to 
sized bales, a 
incorporated into lhe feed 
system which discharges directly 
into a galhering hopper. 

A pivoting lid actuated hy 
hydraulic rum and cylinder com- 
presses the material into the 
baling chamber. This has lhe 
effect nf producing a certain 
amount of prevompression. and 
with less dense matter further 

dumps or materials cun 
arranged in order to increase 
Ihe size of the finished bale 
Metal is carried forward into, 
the pressure area by lhe gather 
ing ram. and the application of 
two rains at right angles in each 
produce regular olher succeeds in the production 
weigh device is or a bale of good appearance and 
quality, says Ihe company. 

Presses can be designed with 
outputs of up to 60 bales an hour, 
dependent upnn ' the feed nf 
material, and Ihe bales generally 
will be or the 300 nun hy 300 mm 
cross section. . Length will lie 
controlled by lhe -setting nr the 
weigh scale and the role of feed. 

The company says it is now 
. . possible for contacts In be made 
...from line and screen negatives 
• or positives outside the darkroom 
...thus speeding up film production 
be. 'and reducing the workload on 
darkroom facilities, 

TELEDICTOR has a now ultra 
sonic thickness gauge from Pana- 
j lie tries in muni tor corrosion by 
determining rt-mairung wail 
thick ness. 

Model 3226 can measure 
rough, corroded and pilled pans 
a* Murk :ts 10 inches or as thin 
as 0.040 inches at temperotures 
up fi> 500 degrees C. 

This type of gauge is used for 
in-service inspection nf pipelines, 
storage tanks and pressure ves- 
sels subject lo corrosion, nrten 
during operation. It also can 
he used to make measurements 
in applications where other 
thickness gauges have difficulty 

because of the geometry or tem- 
perature of the part. 

It gives readings on a large 
(0.4 inches) liquid-crystal dis- 
play. which is easily read in 
bright sunlight. A back-light for 
the display makes it visible in 
total darkness. 

A digital material velocity con- 
trol allows easy lalibration for 
any nwleria]. from lead to steel 
and to Beryllium. This control 
can aiso be calibrated in either 
English or metric units. 

Teledicior, Coneygre Indust- 
rial Estate. Tipton. Wesi Mid- 
lands. DY4 SYB. 021-557 3056. 

A PORTABLE machine weighing 
only 34 ]b.s can he carried and 
used on-site to swage connections 
to hydraulic hoses, but it is also 
suitable for immediate repairs 
tn equipment fitted with other 
hoses, says maker K. and B. 
Beattie (Engineers). Bedlinglon, 
Northumberland (0670-823241). 

The Beattie swaging system 
utilises a one-piece coupling and 
can be used for hoses with a 
nominal interna] diameter Troin 
0215 inches lo I inch — and in 
certain cases up lr» 1.25 inches. 


from organism 

THE NEED" to translate initial /click -in (or glue-on) wlrintf sup- 
designs into 'prototype beards; as/ port and guidance strips which'. A" • . 1 JC 11? 

quickly as possible is- still .a' prob*' keep- the wiring in place ■ and / \ | flyfl 21 8 1060 irom sewage 

Tfie strips are assembled down . . .... 

the length of the board at' inter- IN A technique developed by the 
vais.oonunensu rate with the com- Israel institute of Technology 
portents (usually ICs): the_ latter sewage is allowed to “meander" 
are. fitted to the hoard and' the .jn a 500 mm deep channel while 
th^old 1 SPrt ^de be1ween on . exposed to intense sunlight. 

uSapeV with cassations for 1 ™f h P r ° ce « encou rages the 
wire side entry, the strips can of algae which release 

accommodate a large nuiuber of ■ .“3? . O vo ’ l '“ es nP , f “ii °^„ n : 
makes use - of matris; drilled ' . wires in a Low profile. ' '' indltcr 

board such as. Vero. a whins pen Unit. 16, Blackdnwn Ro^al , l u - ,cW y jnd 
utilising, wire from ^ which the Industries, Haste Hill. Haslq^ 
insulation is removed at the -sol- mere. Surrey, G4J27 3AY (0428 
deribg point by iron 4mati and 52445). . 1 

)em for- circuit ^designers - with 
relatively, sm all projects Who 
cannot bring large scale GAD 
techniques to . bear. ... r — 
Whatever short cuts arc used, 
the prototype board must have 
as mapy of the electrical and 
mechanical charade rislics of 
the ‘‘real" board .^s possfble . 1 

An answer from TJB Asso- 
ciates orHaslemere is akit which 

\*- ^ JV”- 

This anhoanc&rLeiit appears as a matter of record only . i .> 




r 8yj%BearerBanasl978dne 1979/1988 

Amsterdam-Kotferfam BankN.V. 
AlgemeneBankNederiand N.V. 
T^ededandsdie IVfiddenstandsbank N- V. 
Pjerson, Hd driag&PiCTS(m N.V. 

_. ; BankM^&T^^NV 
I Jfederiandse 

XV:SIav^ 1 >ui^sBaiik 
VandCT Hoop, Offers &Zoon N.V. 

De&mbert9, 1978.' 

. Several advantages arc 
claimed. For example, the 
nutrients in the sewage are 
removed because they are incor- 
porated in the algae: they do not 
therefore find I heir way into the 
rivers .,nd lakes ultimately 
receiving lhe. purified sewage, 
and so ihe latter do not them- 

selves suffer 

It is (.laiincd that lhe water 
produced is of very high quality, 
suitable for almost any irriga- 
tion purpose. 

A bonus is that the can 
be harvested, dried and used as 
animal feed. They contain 40 tu 
50 per cent protein and yields nf 
up to .60 tons of dry - matter per 
acre of pond area have been 
nbtained. The material ran 
replace cither soy meal or fish 
m^al in feed mixes, costing abnut 
the same as the former but .sub- 
stantially less than the latter. 

Techmon — Israel Institute of 
Tcchnulogyi Technion City, 
Haifa, Israel. 


Makes it easier to answer 

INTRODUCED by Ansafone is 
the model '6A answering 
machine which, although it is no 
more expensive lo rent than the 
previous mode] 6. offers a num- 
ber of convenient features. 

Exchangeable opening an- 
nouncement . cartridges or 30 
seconds, to three minutes dura- 
tipn cao be provided so that the 
-user can. build up a library to 
meet changing situations — 
although a single cartridge can 
be over-recorded with a revised 
announcement rf desired. 

" The •' incoming messages are 
Y ' recorded on C60 and C90 cas- 
settes which fit under a hinged 

lid on lop of the machine: They 
caii be played back in situ, or 
the cassette played on another 
machine while the 6A continues 
to take new messages. The caller 
cun speak for as long as he iikes 
— there is no cut-off after a fixed 

A useful “hand-on" facility 
is provided by which the user can 
speak " live " to a caller and then 
pass him to the machine if appro- 

The 6A can he used for dicta- 
tion when not nn line. 

More .-from 19 .Upper Brook 
Street, London W1Y 2HS (01-629 

Terminal for telex 

LATEST version of the ZIP- A. SR 
terminal from D*ta Dynamics has 
-been 'designed for operation on 
i&ex 4 -circuits throughout the 
worldL-g. relatively simple 'mat- 
ter for the company because the 
unit coniroiled by a- micro- 
processor. • - • •• - 

. •.Incorporating a call -control 
iiriit.for “push bull on "dialling, 
■the machine also has an integral 
five level .paper punch and 
reader which can he turned on 
and' loff * manually or by coded 
signals received from line. 
Messages can be punched on to v 
tape' wrth. the machine in the ' 
"locjrl* mode and then sent on- 
Upe'ns in standard telex practice, 
.The . company believes that 
operators will appreciate the 
Jjigb' quality lypewriter-nyle key- 
board and tbe absence of any 

need to depress figure and letter 
shift keys ns with the norma! 
three "row telex keyboard: tbe 
machine has Tour rows and all 
the conversion to 6ve level code 
is performed by the niiern. 

Print head is the company's 
standard 7x5 dot matrix, with 
locally prepared messages 
appearing in red and those from 
tine in black. 

-Springfield Road, Hayes, 
Middx. (01-848 9781 ). 

• Eu opreement between Hie 
Financial Times and the BBC. 
information from The Technical 
Page is. available for use by the 
Corporation's Extomnl Services 
as source material for its over- 
seas broadcasts. 

On Saturday 23 December, the 
Financial Times will be publishing an 
8 page pull out Christmas 
supplement covering the 4 days of 
television and radio programmes. 

With programme comments by 
Arthur Sandies and Chris Dunkley, 
it will be read by Britain's leading 
businessmen and their families 
in their homes. 

It will be an ideal place for 
advertising anything from leather 
goods to perfumes,- burglar alarms to 
New Year Sales. 

For details of rates and space availability, ring 
Chris Manson on 01-248 8000 extension 7063. 




: : 5. t 


_; t AAvA-^ 

■ a . 




BNOC is deeply involved in a wide range of exploration 
and production projects related to the offshoreoif industry. 

A vacancy has arisen for a SENIOR INSURANCE ASSISTANT 
to be based at our Insurance Department in London. 

Applicants should be graduates with at least six year? 
successlul experience in their particular discipline, or people 
already in insurance, who have had the opportunity to develop 
negotiating skiffs and who are able to demonstrate an 
effectiveness in handling a wide range of complex 
administrative assignments. . . 

Where necessary familiarisation training win be given in 
aspects of insurance wtth particular reference to those 
relating to the Corporation’s activities. 

Reporting to the Insurance Manager, the main duties of 
the post will include: 

Co-ordinating all insu ranees and documentation required 

and participation in negotiations with Partners of the 


Involvement in all contractual agreements during seismic 
survey and exploration drilling in order to agree insurance 
and indemnity da uses. 

The giving of assistance in dealing with all the 
Corporation's insurance requirements. 

This is an excellent opportunity to join a young, fast- 
moving organisation which recognises effort andability by its 
progressive attitude to career development 

Salary and conditions of employment mdudins relocation 
expenses where appropriate, enhance this attractive parity 
Please write or telephone for an application form quoting 
reference INS2 to: 

Personnel Manager, The British National Oil Corporation, 
38 Hans Crescent, London SW1XOND. Tel: 01-589 4565. 


The Britis h KuHoodl OB C af pof flrion 



Medium sized Lloyd *s Broking House wish to 
commence a Reinsurance Account and seek 
an Executive weii versed in all aspects of 
Non -Marine Reinsurance Production, 

including LMX. - • / 

5ubstantial'benefits, Including equity 
participation are available to the. right 
applicant. ' 

Write Box A 6578, Financial Times, . 

10 Cannon Street, EC4P 4BY. 

Fortune 500 Company 





Dynamic Fortune 500 company requires a top sales/ marketing 
manager to take full P&L responsibility for a group of well-established 
European subsidiary companies selling a premium product through both 
food and speciality stores. 

Current volume is $B0M and annual growth already exceeds 25%. 

The successful candidate (male or female) will report directly to the 
European President, will be based south of London and will- 

* be aged between 36-42 years' 

Tfr have a minimum of ten years experience at the sharp end of a 
blue chip consumer goods company 

ic have held line responsibility in a mainland European country in 
addition to line responsibility in either the U.K.or North America 

This will be one of the outstanding 1979 career opportunity 

Pleaie send brief c.v. including telephone number for period up to Jan. 8 to: 

Alfred Baf« International Recruitment, Wfetgafe. House, 9 Holbam, London EC7N2NE, 

Stpcfly confidential la consultants. 

Financial Controller/ 
Company Secretary 

Ibadan, Nigeria 

On behalf of ib? associated company in. 
Nigeria. University Tress Limited (UPL), 
Oxford University' Press wishes to recruit 
a Nigerian citizen to the newly created post 
of Fina ncia I Controller. Company Secretary. 
UI’L is a publishing house which will shortly 
be quoted on the Nigerian Stock Exchange. 

Reporting to the Chief' Executive, the 
successful candidate will assume full res- 
ponsibility for the financial and secretarial 
aspects ot the management of the business, 
in addition to playing a significant role in 


the general management and planning of 

Candidates should be professionally 
qualified accountants, aged 30 to 40 and 
have at least five years post qualification 

This is a senior appointment and salary 
is negotiable according to relevant experi- 
ence Other benefits will include a housin 
allowance generous provident fund an 
gratuity schemes, free medical aid and a 
company can 




Applications, together with comprehensive 
details of personal history qualifications and experi- 
ence should be sent to:- W. R. Andrews. International 
Division, Oxford University JPress, Walton Street 



One of the world's foremost banks 
operates a successful and profitable 
subsidiary which specialises in lending to 
the property and construction sectors. A 
Chartered Surveyor is required to join this 
small team. He/she w/ll report direct to the 
M.D. and his/her main task will be to 
advise on the viability of clients' schemes. 
Candidales aged around 30 should have 
an eye for a marketable property. They 
also need some experience of valuation, 
legal documentation and site work and 
they wilt be expected to develop the 
requisite hanking skills. Essentially the 
post, which offers a good base tor a 

£ 9,000 

progressive career, calls for a generalist 
with a commitment to accuracy. Salary is 
negotiable around £9,000 plus significant 
fringe benefits. Location: Central London. 

Personnel Services Ref: GE34:6704iFT 

Initial interviews are conducted by PA 
Consultants. No details are divulged to 
clients without prior permission. Please 
send brief career details or write lor an 
application form, quoting the reference 
number on both your fetter and envelope, 
and advise us if you have recently made 
any other applications to PA Personnel 

PA Personnel Services 

HjiJe PjrL MJ,i Knii{bl>hridr;c # Londun SW1\ 7LE,Tel: 01-233 bUbU Teleip 27874 

ul P- trr-ntf.r.ns! 

Our client is an intcnutional contr.icting organisation 
•with arujox commercial developments and fuodiises in. 

Responsible to the resident Director, the successful 
applicant will tike charge of the - iinnac'uL accounting 
function, in. particular the present.idr.n of compre- 
hensive and pr<<mpc tmaapeoienr .iccouais. Addition- 
ally, the Chief Accountant is expected lu contribute to 
the control and direction of the company and to assist 
mi the formulation ufc policy through the inicrpretuiiua 
of results. 

Candidate* should he folly qualified and ideally hate 
experience in. the axiir.ictxng industry. '.This appoint- 
ment is «>n u bachelor or married status and offers 
excellent conditions «.-l employment, for example the 
provision of tree medical treatment and tree accommo- 
dation. The contract is renewable .inmutly. Please reply 
-with full personal and oteer details l<i JV-iitiun Numhec 
ASC 7 ii 2 , .\ustiri_Xniuht Limited, LuruluQ WiA iDS. 

Applicuiuns ate iortvaidcd to the client concerned, 
therefore comp.inius in which you ate not interested 
should he Ji-tcd in a covering Jcucr to the Position 
Number Super v is- w. 


to £8^00 

leading -inremai’onal C orman f. 
based in London, wtth Interests In. 
music, leisure and -electronic; re- 
quire your qua! Ih cations and 
knowledge of comnuteriied systems. 
One month of Eurooem travel and 
move to Line management vdthin 
I wo -rears. Attractive fringe bene* 
bts. Including generous product dis- 
counts. So move Into the last 
track. Contact Peter Lloyd on 01 
82® TOSS. - - 

0LB28 8055/7361 

Churchill Personnel Consultants 
Ahford Bouse, liiWilton Bond, 
London SWl V ] CL ' • 


aged 25/35 -year* with sound indus- 
trial avMrienca prelerably in the 
enninMnng and/or charmcal in- 
dustry: able to work on own initia- 
tive end prepared to travel. Required 
by National Urm of Chartered Loss 
Adiosiers to analyse and cost finan- 
cial losses arising front plant break- 
down and other incidents in 'all 
types of industry. Please reply 
stating age. Axpananca and quali- 
fications to: 

Box A85B0, Financial Times 
10 Cannon Street. EC-iP 4BY 

TIGATOR tor post In Freeport. Bahama 
Islands. Must have background In 
electro-chemistry and electrical engin- 
eering and be capable of conducting 
research In present state-of-the-art and 
laboratory experiments on batteries, hid 
cells. DC motors, controllers, chargers 
and other Items of electrical propulsion 
systems. Multiple research prelects win 
he handled simultaneously with progress 
reports produced on a continuous basis. 
Send complete resume to Box A .6573. 
Financial Times. 10. Cannon Street. 
EC4P 4BV. 



M.I.S. International Inc., a successful and highly regarded, 
computer systems and software service company in the 
Detroit area, seeks creative and ambitious professionals 
looking for a true challenge in the data processing field. 
Our real tune, on-line products and services include customer 
education, data base management, and turn-key systems. 

We are looking for individuals with a proven record of 
accomplishment and 3-5 years of Hands On” programming 
experience, who could be available within 3 months. 

Current openings include: 

experienced in Cobol. PL/1. IMS, DMS, IDS.. 

enced in Micro-Mini Computers. 

M.T.S. -International Inc. has an excellent starting salary for 
those with demonstrated expertise, with regular increases 
based on individual merit Our benefit package is second 
to none and a relocation allowance is provided. 

Interviewing in London on Wednesday 20th, Thursday 21st 
and Friday 22nd December, 1978. 

Qualified professionals should send their resumes to Box 
No. A.6581, Financial Times, 10, Cannon Street. EC4P 4BY. 
Or mail directly to: 


31350 Smith Road, Romulus, Mich. 48174, U.S.A. 

Phone: 313-320-7010 

Fluent French Seeks interesting, rcCDtjn- 
slblc hill or Part-time lob. Can travel, 
with clean driving licence. Any genuine 
Oiler considered. Write Box A. 6572, 
F' r y nc l£l Times. 10 Cannon Street. 

tL4r 4GY . 


Corporate Ajfam 

EUROPEAN BASE 5100,000 + 

An exceptional opportunity exists fora seasoned executive 
face 45 to 53 years! who bas lop level corporate affairs or related 
experience with major companies in the USA and Europe. 
Nationality is not important. A legal background would be an 
advantage. English. German and French is desired. Above all. 
an internationalist with strategic planning stalls and the ability 
to lead a world-wide program is needed . 

As consultants acting for our principals on this key 
appointment, complete confidence is assured. No enquiry will 
be disclosed without prior permission. Please send brief details 
10 Reference 1533 B care of; 

Universal Media, ebacisee dr La Hulpe 122, 
at B-1050 Bruxelles, who will forward. 


Professional international organisation, 
providing s range of services to 
shippers of commodities worldwide, 
requires dynamic commercial manager 
to be employed by its Belgium com- 
pany. First consideration will be 
given to candidates with experience 
in the grain trade. The successful 
applicant will be required to live in 
Antwerp and muse be fluent in English 
and local languages. 

PlroiM reply in fine Instance to; 

A- R. Griffith, 

Croup Chirnim Mr KaiUEOV Director. 
Drniiel C. Griffith h Company Ltd., 
Perry Road. Wit ham, 

Essex, CM* 3TU. 



Mini mum £5,500 

Start 1979 with this Company and 
enjoy Bonus. Pension Scheme. 3'c 
weeks holidays and Luncheon 
Vouchers. Take me responsibility 
as Audit Manager with super- 
vision ana management ol a wiM 
and varied selection of (ases. If 
yOu're not Qualified Dut have sound 
experience sou could be a Senior 
or Seml-Semor Auolt ClcrV with 
ttrts interesting Company-’ so con- 
tact judi-Ann Ros»e, 828 BOSS 


Churchill Penuvnnel Consultants 
Abfnrd House. I.i 5 iitnn Road. 

Lnndntl *jtt |V li.T. 

■*L youi 





c £9,000 

Car and usual fringe benefits 

We seek a qualified Company Secretary to fill a post with 
great potential We are a publicly quoted company, based- in 
London, with 22 subsidiaries in the leisure and distribution 
business. ’ 

The person joining us will have had previous experience:' 
please write giving full details oF this experience, indudirg} 
your current salary and your age to : 

A6579. Financial limes. 10 Cannon Suoal. EC4P 48V 



Who would like tu work from bis home base and is able to 
travel a lot in the United Kingdom. 

We are a young team working for an American com parly and 
located in Geneva. ' • • 

If you have a good mechanical, some electrical as well as some, 
electronic background and some experience in the field of 
paper and cardboard industries, then soon you can : be a 
member of our team. . ;l 

Date of entry: immediate. 

Cull or y+iUc to: 


Geneva Brand 

•Ml. Chemiq dc* la Gravlere, €H- 122 7- A cad as, Geneve. 
Switzerland. - Tel. 0IQ41.Z2/42J0.I0 

' Financial Tunes jtucdupj-..*~ 


UU1 te'.JMur 

• J- - 3- , 


•hLy. * --J 

Sir Henry Mance ha$ been 

elected a deputy, chairman, dnd 
Smnrer of LLOYD'S REGIS- 
TER. OF SHIPPING - in succes- 
s iott-to Mr. J. Nf. S. Badgers, who 
retires on January h.-Str Hgt\iy 
bas : ' followed a . diatingutehed .. , . 

career in underwriting, and was 
elected chairman of Uoytfs MSkTHOUw ■ 

appointed joint m anagin g direc- 
pnrba g in g . jnanixf BcboMT' in 
Guernsey.. ' . \ . ... 

Lord Swansea states tfratihe haa 
not -yet agreed - to ; iake -.^‘ran 
aopointment ,as : .a direefitfi^md 
chainoran <d-- .WELSH 

Underwriters' • Association In 
.1865' and 1368, member qf the 
committee of 'Lloyd’s from .-J366 
tb.2973, deputy chaimKLiB iS&7 
and 1968 and for. fo«r consecu- 
tive years from 196% -he ^yas 
T. hahm’an of - Xtoyds, ; Heis-;a 
metrfber of Iioyd*&. Registers 
general committee ■ and was 
recently • elected to Lloyd’s 
Regfeiep’s executive 
executive board. ' 

Xfie committee of - lXOYD’S 

1979^'wiU be: Mr.: E. .E. Nelson 

PANY 'announces ' the appoint- 
ment of Mr.- y. M. TM1USB-S& 

: company secretary from. January 
l oo ihe: JTetirement oE.'-Jlr. 
Frederick A. GJeadeU- - : ■ ?' 

■’ ‘ ■' . - 
At ‘ the .IMPERIAL - XffE 
CANADA Jtr. R- H.^ A.. Wain 
becomes - - assistant ' - : gmforai. 
manager for' Great Britato from 
January 1. ' * . v - ■ : 

• • •• • v ■ _- * . . ' ‘•••r 

- Mr. L. HwreJgrbve : has been 
appointed-. European marketing 

{chairman); Mr. BL S. Freeman EMn^er^fo.^ NATION 
(deputy chairman); Mr.: M. 

Cockelt (honorary -treasurer); 
MttvR. Baflantyne; Mr. F. Barber; 
Mr/ D. J. Barham; Mr. F- L. 
Foden-Partlnson; Dir. A. B. Gray; 
Hr- D. 3E. Harman: Mr. R. D. 
Hazell; Mr. W. N. M. Lawrence; 
Mr. C. K. Murray; Me. :H- B. 
RokcbyJTohnson; Mr. C H. A. 
Skey; Hr.CL'J. SmiOu Mr- J.R- S. 
Waee; together with.^e ebair- 
tfian and ■ deputy eh airmen of 
Lloyd's (ex officio). . 

4r : , 

Mr. John Waifto, who was 
seconded to AMALGAMATED 
Patino : KY.‘ as chief executive, 
hag decided to rejoin the Patino 
group in Canada. Mr. Walton 
will retire at an AMC board 
meeting to be held on January 
2$; when Hr. Joerg Stegmann 
will be appointed to succeed 
Atoi ' as chief executive. Mr. 
Stegmann, who is already a 

group Europe, , fle i&itBi 
for both OEM sates of IBM-rCpmr 
- . patible products arid European - 
- headquarters ptoduct marketing. 
He ‘ joined ' Na tional. .. 'feim- . 
conductor from Data. Generiq,' 1 . 

- ... : ’ ‘ 7- ' ■ '-. .MJ •. 

, Mr. Jeremy Briggs has Ifecoare 
manag in g director of Hatterpiey 
Heaton,, a new -company ^formed 
to manufactuiE and Jnarkei ex- 
clusively the ' Pegler j^ttersley ' 
Group's' cast and forged steel 
_ valves to nhe ’ptt- and , betro^ 
•dieimeal - to'dwstry~ Mr. Briggs 
was. : previously ' ^manufacturing, 
director . of sister company; 
Hattersley Newman^ Heniteev'Ete, 
management teata comprises; Mr. - 
Nell Howard . who.- becomes 

engineering c director,:- Mf- : M. 

Humphries, . who is /appointed 
finance -and a tatojuStrittioxL. direc- 
tor; Mr, R. Sedgtflek ^hb 
becomes- sales ' director and Mr. 

tcanrinriSp nr Brian smith 1 Who- is appointed 
daector of AMC- is a member ot manufacturing: "director, 

the -executive board of Preussag 
AXSy which now holds 76.7 per 
cent- of the issued ordinary 
shares of AMC. 

. •*. . 
.Western Region of -BRITISH 
RAIL has appointed -a new chief 
finance officer, Mr. Alan Lee, 
who. joins the " Region from 
British Railways Board HQ.. Mr-. 
Lee takes over from Mr. A. i. 
Nkfiofls who bas moved - to 
London Midland Region. 


Mr. David R. Butcher has been 
named marketing manager,. Inter 

. Kr. C E. S-. Van der Wards, and 
Mr. W.. B. -Wright hive- heeh 
appointed directors ot'ERAigES 
TOURS. Mr.' I B- H. Cmipmtd. 
has been appointed chairman of 
and Mr. A. G-Beroh, Mr. S. O. fi. 
Lovell, 'Mr, 1 A. W Saunders awl . 
Mr, " Van der Waals ha^e teea 
appointed directors. •" 

. ■ ' v7: 4 .- .* .!■/ • -■->-* ->■ 

announces that Mr. A, Naught On, 

who. has been, the managing 
HAUICU UliXlixcuug iiiaudp&t aMMiC**. director of DCBTsi Australian sub- 
national- employee benefits, for sidiary— -Lidrani P &.— is returii- 
tfie life insurance companies' of ing to' the UK ag ' managing 

GROUP. INC. He will also serve 
as UK marketing manager 
American Life Insurance Com- 
pany's specialty division. Ameri- 
can Life is a member o£ Ameri- 
can Interandonal Group, Iner 

Dr. John Tarrant has been 

January 1. Mr. .Alex Mate, Cur- 
rently the sales' director of ' Jean 
Sorelie, has - been -appointed 
deputy managing ^rector oL^that 
company from January 1, -1879. 
Mr. Ralph Stevens will oversee 
toe -operation dt.thje.vtwo. copi- 
panies and will also control,, via 

promoted to technical .director .'Combe*,, the marketing _and dis- 
irom -works manager of. UNI- tributlon of ‘ the-.- Russian pVo- 
VERSAL , PACKAGING, the riuced items, contracted by Novo 
Lonsdale' -.Universal 

itexihte Tdys. 


Bank International 

Three^ : senior ■ .'.dire^g rs ' . 

NAT10NAL, • Mr. Harfy ' F. factirrm^TrMife tdatt, tamping 
Op pc nh cSiner, Mr. ' Arthmr S. equipteeuti gJteden fiHTUture and 
Aiken and Lord Seebohra, sa&Se^^ produms^^siider th e 

Following .the decision . hr Dbbsbh ParS, todustefes of a stake 
separate the. offices of chapman-- in the egui% . of ..afe . American 
of the Barclay's Group and bJv'jrompanK STAMP- 

Barclays Bank International .3w> ; ING. bf Ja^EScg* Midiigan, it has 
Anthony F. Take, toe group been - asooimeed that - Mr. 

chairman, will hand over chair- 
manship . of the international 
bank at -the annual meeting to-. 
Mr. Henry Lambert; a vice-chair- 
man of- Barclays Bank and a 
director of Barclays Bank Inter- 
national. Mr. Tuke will there- 
after continue as a director hf toe 
international bank. 

- * 

Mr. ). R. Davidson has' been . 
appointed' director and general 
manager or tne manufacturing 
division of G. E. “A. AIR- 
Northern Ireland. He comes 
from Robert Jenkins and -Co., 
Rotherham, where he was 
director and general manager. : 

Mr. A. Barrett has been 
appointed, senior local director 
at BARCLAY - BANK’S Luton 
local head office and. a director 
of Barclays Bank UK manage- 

★ 7: ' • ■ 

Mr. Roger Gates, currently 
chief engineer. and 'Mr. 
Christopher Senior, currently co- 
ordinator of overseas operations,- 
liave been appointed to the Board 


'+ ' 

Mr. .John Brandon hag been 
made managing director ■ of 
product ‘ provision and instaIJa-- 
tion subsidiary of toe Terrapin 
International Group. Mr,. Athoi 
Louie, managing director of ..the. 
division 'iihee 1S71, isroiinquiah- 


Geoffrey J.- Chibbett ia Dobson 
Park main board,, member^ has 
been appointed- chairman of the 
board of toe new tompany and 
that Mr. Peter Crook (managing 
director of Byron International) 
has been appointed . executive 
vice-president. . . 

. " + ■ ' — 

The Secretary of State for the 
Environment, and toe Secretaries 
of State for Scotland and Wales, 
have- appointed Mr. Idwal 
Symonds and Mr. John Edmonds, 
to be members of the board of 

Mr. Robert J. Jones has been 
appointed co-ordinator — con- 
servation projects^ in toe market- 
ing division of BRITISH GAS. 
‘He- lias been involved In energy 
conservation activities 'With toe 
Department .'of Energy, the 
Advisory Council tot Energy Con- 
servationand the Royal Institute 
of British Architects. 

Dr/Norman Welsh, director of 
research and .development at 
Gillette’s Reading technical estab- 
lishment,., has been appointed. a 
director - of. GILLETTE 

■ Chairman.: of THE BOOTS 
COMPANY-. Dr. Gordon ' Hobday 
has been 'appointed Chancellor of 
Nottingham .University. . 

Mr. J?Y - Crisp t since 1974 
manag er o f, 'the Lyods. branch 
lng to& .position to coneehtrate .'MD4STER RANKra wholly-owned 
on "graiin,maib duties,’ hot 7 •®WflJauteaj--'.'W West- 

wili remain ehftirr»nn. ' • - 'jmiMtar. -y .'Bank#-;-.' .has - - been 

rOv.'-.v ^ pointeff-: .Nafvfest's Moscow 
CHARLES .' CUFT-ORD IN-’ - succeeds 

DUSTR2ES-. aim ounces- that- C fiestee lho^o is retum- 

Ba^ii Ancoft has been_ appointed ^ 

a dir«^ot7 following- toe^ f ’. ' " ' 

tion of-JHL Derek Jones. . NeytilaVTaylor, director of 

;. . . * • v *i^o*?Wi4?\af43^Tji^'ariment of 

Der^t’Croucb ’has jannputiMd r "ii*WMuiteid;.. ; ' 1974, - has 

the forinaribn of- a new <-frr ^i| w'-./bt»a, _‘api»iatFit ~ -teeetor _of 
— -DEREK. CROUCS (CCWTRAC- ' atl’-.tiie' DEPART- 

'TORS)— to deal whh jte .KENT- ;';QF- 7HEAKTH AND 

and ei^l.. engineering operations SOCIAL- r. SECURITY. ■ - ; He 
in ,tire--hortti-easnof En ^and add ' .succeeds ,jHr, JflhnfG roves, the 
in Souto'Wafes. Chairman of the_; ? ew ^ aiSpbinted director general . 
new cbmpany.i which comes jhto ? 1 ' ' ‘Ute- IGpfiteai ^Office of 
John " 

eaecuthfeidE 'Dertik. Crouch ftoS’P' J ? r - Bireff'. iCqtiteoh has : been 
hoftfihg-'cdmftaSy for the! xnahMfogV^trecto'r 6t- 

Mana^dg: director wiU 'lie i Mr^ -the 

rdivMon of the 

Edmund Graibaar been, naihS 

Mr. TKlUl Vte ." RP0KT 

. ’: Fiaauci^I Times 

PeceimberTST 1978 




./ • ‘-H- 

- , v.- «■ 



i ' 

, 4 r 


r s 


*• ft. 

i ■ "I. 

■- •'*>; 

v-. ft' 
■ -ft 

» v 

v. . . y 
'' '•■• : 

t.\ . ' : 1 

V • ; -r u : 

- r • i 

a Barclay 

JUST wcr . a year, ago,'-' Ibe 
Rational Enterprise Board made 
-one- of ■ its .most . controversial 
moves when, xifiht finder the 
nose of Trafalgar Jjou^e,- it Wd 
for the engineering .eoijipaiiies 
in the Faixey group; whose- air- 
craft division had just collapsed, 
throwing the whole concern into 
receivership. .. 

Cntfcsr nv Tthc 'Conservative 
Party and IheYthVtetfed Trafal- 
gar House challenged the logic 
of pouring public . Snoivey into 
an acquisition which, the .private 
sector wanted. 'while, those who . 
believed that tbe -NEfi" has some 
strategic zoic to fulfill in indus- 
try were at a loss to explain . 
this one.- •' • 

• . A year.later J*airey Holdings,- ;- 
as it was Teharaed, 'hfs.i-dpne 
nothing visibly •: to demonstrate - 
that' it was a* essential.: NEB 
bay. It has. Been hi. the news 
mainly ./or ~ closing .Tress 
Engineering,' a subsjdiary.ln the 
North East, thus confirming the 
views of those " who com 
that the NEB is a. far cry from 
the socialist principles that gave 
it birth.. . 

Jn. the first half of the year, 
it was ' not \ even particularly 
profitable. As a result, of the 
closure of Tress — which made 
valves and gauges^-lt had . to 
make » -£2.2 ra provision before 
its interim, profit was struck; 
thus it was substantially Jess 
than the. £3 Jim . . before tax 
erroneously referred to recently 
by Mr. Gerald Kaufman, the 
Minister of State- .for industry. 

Frc dtUe Mm *nf hi 

Mr. Angus Murray— brought in to put Faircy back on its feet. 

Fairey’s safe haven tinder the 


NEB promises to pay off 

At this point, the question 
might well . be asked ' why- the 
NEB - was so keen to pay 
£2Q.5m for an assortment of 
engineering companies, which 
had almost nothing- in common 
opart from their name. The 
fact that Fa irey has been given 
a freedom: by the NEB very 
much -akin to having private 
shareholders will . strengthen 
the view, of those other critics 
of the NEB. who say that it 
does . nothing, that ;thc private 
sector cannof do equally well. 

But the plans the board of 
Faircy Holdings have >.for . the 
group suggest that— if." they 
come off— there may well havfr. 
been- -some rationale - in the 
NEB's purchase;; and not: least 
in that it, will be in possession 
of a thriving engineering con- 
cern. .. . . 

- .Fairey needed -.'a .breathing 
space. The problems of the 
group’s - aircraft division* Which 
finally 'brought about -.the 
collapse of the whole group, . 
had denied the engineering crim- 


joined in the latc summer by 
Mr. Kenneth -Baosd, also an 
outside appointment, as chief 
executive. New board* members 
have been appointed'' by Mr. 
Murray, with a bias.dn favour 
of non-executive directors with 
experience in enginferia? or in 
Fairey's customer industries. 

.The NEB ask*' -Fairey r« 
submit monthly accounts, which 
are incorporated intirthe NEB's 
accounts, and are used as a basis 
of liaison betweenFairey and 
the NEB. It also.^isks for a 
forward profit plan, 7 and a 
corporate plan. the> . first of 
which has just been ^ubm i tted . 

These requiremei^apart. the 
Fairey managemenjrliak been 
left largely to get bn spth the 
job, .The menmiahcjtim of 
understanding betweensFairey 
and- the NEB require*-, that 
“significant" acquisitions and 
disposals be discussed with the 
NEB, and Mr. Murray divided 

had to go in an area of high 
unemployment. The closure 
proposal was submitted by the 
Board of Faircy. and it took 
about a month for the NEB to 
give its hacking. Considering 
that Mr. Hugh Scanlon, whose 
AlIEW was the union most 
affected, is one of four trade 
unionists on the Board of the 
NEB. there could hardly be a 
belter demonstration that Fairey 
is being run on normal com- 
mercial lines. 


m iro$ Spring 

ip NEB- there 

parties both the direction and from the start .to cut* o§| the 
the finance which they needed “significant” and conkultwhal- 
tri expand, arid in-some eases ever the size. His thelry * that 
to survive. I., . ; ! Y .' "qs long as he 1 dries trot i 

The' NEB' . appointed Mr. any surprises np the 
Angus Murray, who had helped , is unlikely to be any friction, 
to turn -round , the Kednian *' The best .example of 'Fairey 
Heenan organisation, • to be deciding ; its' course, was 
chairman of . Fairey. He was. oyer Tress, where over 300 jobs 
— — — - — " - 

If there is a constraint in 
having the NEB as your share- 
holder. Mr. Murray says it is 
that the companies arc much 
more in the political .glare. In 
ihe last year, the factories have 
been . inundated with official 
visits, including those by (be 
Prime Minister, the Industry 
Secretary and an Industry Mini- 
ster. Whatever move Fairey 
decides to make, it will attract 
political attention which would 
never have been encountered in 
the private sector. 

But there has been no sign 
of any NEB pressure on Fairey 
to rescue ailing companies, or in 
behave in any different way 

from a company in the private 
sector. As well as closing Tress, 
Fairey Holdings recently sold a 
marina on the River Hamblc to 
a Dutch company for about 
EJjm. and the sale of other 
interests peripheral to the main 
body uf the group can be 
expected in due course. 

The group's strengths are in 
the areas of hydraulics, which 
grew out of the old Fairey air- 
craft activities, and filtration 
equipment, which spTang from 
hydraulics. Fairey Hydraulics 
has been a supplier >n almost 
every European aircraft project, 
and has high hopes of gelling 
orders for the new Boeing 757 
project. This could mean orders 
worth anything between 
£500,000 and £5m a year. 

As with the aerospace 
industry itself, the way ahead 
for aircraft components lies in 
larger companies— both through 

—the bank?' rales make them 
marginally the favourite. 

Mr. Murray emphasises that 
acquisitions will not be made 
for their own sake, " but where 
Fairey • already has a tech- 
nological lead, they can be 

Fairey Filtration, which sup- 
plies filtration equipment to 
industry, is particularly success- 
ful and is seen as probably the 
must promising growth area, 
and also a base fur acquisitions. 
Like hydraulics, it achieves a 
high per ccnlage uf exports. 
But Fairey i«, looking for over- 
seas manufacturing facilities as 
well, with the U.S. high on the 

Fairey Engineering, based at 
Stockport, continues to be the 
group’s main breadwinner. Its 
activities arc divided between 
military products, where it is 
best known for its medium 
bridges, and nuclear 

acquisition and collaboration. .. . 

Both means to growth are being rS ird . er . . 

planned by Fairey. Fairey Hold- engineering.. Both of these 
ings has almost no borrowings areas arc doing reasonably well, 
at present, but if it is to make Mr - Murray does not see 
sizeable acquisitions, it is clearly a growth market. He 

going to need some. The Board ,s concerned therefore tn add 

is awaiting guidance from the 
NEB on the sort of gearing ratio 
it ought to have. It Is likely to 
borrow from banks or the NEB 

TRW Has Record Third Quarter 

- • . • 


(US doflar amounts in mikions except for per share data! 

' 1978 



/ ' 

7 . •' : 

Sates ; ; . . 

927:9 $ 


* Pre-Tax Profit . 

7 S e j •• 


. £ Net Earrtlngs. 


• '36.4 

- ■ • 

Ea minus. Per Share 

«;• - Fully Diluted .* 

1.15 \ 


,'iF . . Piimarv 

131 - 


Dividends Paid Pet Common Share 


■; .40 


* t . ; 

' ■ Sales . ; . . . ,, ,. 

2 7f>4 7 -*. 



338.4 ' - 


■"* - ‘ Net Eamjnqs . . i . . , 


: 110.6 

5 / Earnings Per Share •’ r - 


340' -• 



3.89 . 

3.4 1 

Dividends Paid Per Common Share 



Outstanding Com mom 1 Stock 

. 2B.400.000- 28.113.000 . 

Shares Used in Computing Per 


■ Share Amounts . . 

' • ' 


.36.786.000 36.700.000 

Primary. . ... ; . 

. 28.82 7.000- -28.857.000 

■ ‘ £ * 

TRW Inc., a major International 
supplier of high-technology prod- 
ucts and services to worldwide 
markets, reported record third 
quarter and nine month results. 

Third quarter sales rose 169'b to 
$927.9 million, compared with 
$797.3 million a year ago. Met earn- 
ings increased 16^-b to $42.2 million, 
versus $36.4 million in 1977's third 
quarter. Fully diluted earnings per 
share totaled $1.1 ^versus $1.00 in 
1977 while primary earnings per 
share were $131 compared with $1.12. 

For the nine months TRW posted 
a sales increase of 151b to $2,754.7 
million, compared with $2,399.8 
million. Met earnings rose 13%. 
reaching $124.9 million versus $110.6 
- million for the first nine months of 
19?7. Fully diluted earnings per 
share totaled $3.40 versus $3.02 in 
the year-ago period while primary 
earnings per share were $3.89 
compared with $3.41. 

Each ofTRWs three business 
segments— electronics and space 
systems, car arid truck, and industrial 
and energy -reported sales and 
operating profit gains for the third 
quarter and nine months. These 
' gains resulted from continued 
■growth in demand for TRW’s diver- 
sified products and services, intro- . 
duction of new products and services, 
and productivity improvements. 

TRW directors declared a quarterly , 
dividend of $.45 per si^are on com- 
mon shades, payable December 15, 
1978. This will be the company's 
161st consecutive dividend declared * 
on TRW common shares. 

For further information, please 
write for a copy of our latest 
quarterly report; 

TRW Europe Inc. 

25 St James's Street 

London SW1A 1HA 

TRW scientists are : working with fiber optics for a variety of 
applica.tiorisl.induding their application to distributed .data ; 
processing for retaii.and financial markets and using . them. 

experimentally ift telephone communications systems*. 



a cmnplelely new activity tn 
Fairnv Engineering tn ensure 
its future, which must mean an 

FaireyHnMinas' cash require- 
ments in th*’ near future will 
not be limited to acquisitions. 
The aviation interests of the old 
Fairey group did not crash 
suddenly. They had been siphon- 

ing off money from the 
engineering division for quite 
a long time. Mr- Murray believes 
that knowledge of this fact was 
the main reason why the group's 
employees did not object to the 
Tress closure — apart from 
Ihuao at Tress itself — because 
they had no wish to see their 
companies pouring cash into 
Newcastle in the way that had 
already happened in Belgium, 
where the aircraft factories 
were located. 

There is a definite need tn 
catch up nn the backlog of 
capital investment if the group 
is to maintain its solid repu- 
tation in engineering. Although 
that reputation received some- 
thing of a dent with the build- 
up of Ihe early AfiR nuclear 
power stations. Mr. Murray says 
the problems that were 
encountered were not of 
Fairey's making. He is hopeful 
that Fairey Nuclear will gel 
contracts on Ihe two new AGRs 
lu be announced before long. 

The NEB had to move 
quickly over the past year in 
order to keep up Fairey's repu- 
tation- Buying companies from 
a receiver, even iT it was not 
those companies which landed 
the group into that position, 
means that the new owner has 
to act fast tu maintain con- 
fidence. On this score. ccTtainly. 
the NEB has d»ne well os any 
alternative purchaser. 

The NEBs guidelines on 
Fairey's return of assets require 
that it should be in “ the upper 
quartile of quoted engineering 
companies." It is unclear what 
that means in terms of actual 
figures but with the closure of 
the Tress lossmaker, Mr. Bacon 
says all parts of the group arc 
making returns of between 20 
and 40 per cent, depending nn 
the company f Fairey FUlraii on. 
for example, would be at the 
upper end). Tbis compares with 
guidelines laid down by-Parlia- 
ment for the NEB as a vvhule 
of a 15-20 per cent return, 
excluding its inherited problem 
companies, and the 10 per cent 
achieved by the Enterprise 
Board in the first half of this 

It is imnossible to predict 
vhat would have happened if 
Fairey had been sold to Trafal- 
gar House last year; it was only 
that group and the NEB which 
were prepared to buy up all the 
companies. All the other bids 
— and there were around I5ft— 
were for various parts. 

What the Fairey group has 
gained from one year under the 
NEB is the time and encourage- 
ment to develop its strengths, 
while being allowed to hive off 
or close down those parts which 
were not central to its goal. 
From the NEB's point of view, 
il has gained a stake in a spe- 
cialised engineering area. But 
perhaps more to the point, al 
the qurrent rate of return, it 
will have recouped its outlay in 
roughly three years' time. Hav- 
ing supplied a safe haven for 
Fairey. it might then do well to 
think of floating off some or all 
of it at a tidy profit to the 

The credit brouhaha 
—a case of 
small beer to soj 


REAL ALE buffs may be 
plcassed .10 bear that Adnams, 
Shepherd Neaoie and Youngs 
are getting belter at it. They 
may however raise their eye- 
brows when they learn that 
Ruddles is getting worse, but 
afford themselves a smile when 
they hear that, the prime 
opponent of yore. Watney's is 
also getting worse. 

But be Tore these beer bibbers 
return tu the bar with their 
prejudices reinforced they 
should be warned this is not a 
mnLier of finings or hops, nr of 
top pressure and kegs. Il is the 
less esoteric but nevertheless 
thorny problem of credit con- 

According to a survey 
published this week, some of 
the small brewers are showing a 
notable ability to cut Ihe 
number of days credit they give 
their customers. 

While a numher nT the 
smaller brewers are improving 
tiieir credit control, the big 
brewers appear not to have been 
able to make the same, gains. 
There has been no change in the 
number nf days credit outstand- 
ing among such big names as 
Allied. Bass Charrington. 
Courage and Whitbread over the 
last three years according in a 
study by Asset Control, a new 
cash management consultancy, 
which was launched yesterday. 

But there were some quite 
major extensions of credit lime 
offered by Watncy (West Lon- 
don! and Scottish and New- 

This is not a definitive guide 
to Ihe efficiency of the cash 
management of these brewers 
hut in part reflects Ihe different 
nature of their trade. The small 
brewers generally have shorter 
credit limes because they have a 
higher percentage of managed 
houses, which is a cash 

On the other hand, ihe hig 
brewers have a' higher element 
of non-cash business; tied 
houses and free trade. And it 
is hecause some of the brewers 
have been trying to increase 
free trade sales (free houses, 
off licences and supermarkets) 
that their credit times have 
lengthened, according to Michael 
Bird, managing partner of Asset 

The average length of credit 
for the brewing industry is 38 
days, according to the study, 
which compares favourably 
with an average for all manufac- 
turing industry uf 62 days. Of 
the other manufacturing or pro- 
cess industries surveyed by 
Asset Control, footwear had the 
shortest average length of credit 
■—27 days— and at the long end 
were electronic instruments 

(average 97 days) and elec- 
tronics non days). Worst or all 
were pump manufacturers 1 104 

One of the I axes t sectors is 
the engineering industry, which 
ls. on average, granting 92 days 
credit to its customers. “The 
figures improved slightly last 
year after the disastrous experi- 
ences of 1974-75.*' notes the sur- 
vey, “but all the evidence shows 
that it is far behind the rest 
of British industry .” 

The survey calculates that as 
the tiOO engineering companies 
which it surveyed had a total 
turnover of £2.73Sm. a reduction 
of just one day's credit would 
give them a once-and-for-all cash 
payment of £7.5ni. 

Extending this argument. 
Asset Control goes on to say 
that if the engineering industry 
as a whole could reduce its 
credit limes by 30 days, to what 
is now the average manufactur- 
ing length of 62. it would benefit 
by a saving nf f2flt>ni. plus an 
extra £39ru in reduced interest 

These figures, based on in- 
terest charges of 1 per cent over 
base rate arc approximate, says 
Asset Control, because the sur- 
vey was based on gross figures. 
•* it proved impossible to ex- 
tract cash and export sales from 
each company involved.*’ There 
should be a large caveat on the 
amounts which Asset Control 
says the engineering industry 
can save, because it assumes 
that while il may be getting 
strict with its debtors its 
creditors are also not -gelling 
lough — inevitable within such 
an industry where there is con- 
siderable inter-trading. 

As :m example of what can he 
achieved. Asset Cnnirol explain 
that ICI reduced the length of 
credit to its UK customers by 
lu days in order to increase 
working capital to finance stacks 
and debtors. “ By reducing the 
trading terms they estimated 
they would be releasing at least 
£25m,'* notes Asset Control. 

The consultants emphasise 
the need for efficiency in the 
accounting system and wryly 
note that while ali systems are 
prone to " slippage," accounting 
ones seem mure liable than 
most. In addition it warns that 
it is a godsend to a company 
to be incorrectly invoiced as it 
then has reason m delay pay- 
ments by many weeks. 

As for offering discounts for 
prompt payment. Asset Controls 
Survey found that most com- 
panies took it whether or not 
il had been earned, and that it 
was loo much trouble lo reclaim. 

Jason Crisp 

cai mm 

We talk 
your language 

If you've got a good idea that's 
agenuine technologicalinnovation, 
NRDC can shoulder half the risk by 
providing the finance for half the 
development and launching costs. 

You don’t have to pay a penny 
back until you start generating 
sales. And you stay in control 

. NRDC’s money and technological 
backing couldbe yours forthe 
asking. Hie very least we'll give you 
is a sympathetic ear and some 

sound advice based on our 
great experience in technological 

Contact the National Research 
Development Corporation, 
Kingsgate House, 66-74 Victoria 
Street, London SW1E 6SL. 

Or better still, ring Brian Mann 
now oh 01-828 3400. 



E^dal Times T^sday: 


Lies, damn’d lies 
and forecasts q 

Now is the time to 

to your 

wh> e women too (would that producing „ burtncM they must accept 

there were more of them !) to the : more modest "Bmutoft » stipulated 

nnn TArdil’tl W| V * ' come to the aid of their cellars. This deficiency nas ansen om 

aflU JLtji. VV'ilwHS • ?■* §5 wor d » cellars '' must be to smaU or indifferent vmtaie^ 

** uwd metaphoricaUy these days lack of cash and the high CTSt 

w Indicate reserve stocks of keeping wane for any length 

BY SAMUEL BRITTAN wherever held: below stairs, of time. 

vasii v -fnrppast How about the three ■ otter behind stairs, in the pantiy or Taking first the vintages, 

T^?*SS«enSs forecasting services not yet d» in merchants' cellars. amorr g the West European 

share prices or eachan e te ™ These are described _ this is always a good countries only Germany has 

or whatever JLVrfj'SS by the Singer treasurer as “/ one’s produced several ample crops 

fJrJrattt for a° living?” The “ relying on techmrati ^oriented ^ s0 much - f or Christ- of quality in the last five years; 

question is only half fair. But ^ e ^?. n ^ e i 10 S ^? ntum models mas and New Year occasions, no and they only, make about 

the usual complex answer only derived from dou bt already provided for, but 10m bl in a good year, com- 

half satisfactory; and it is — the chartist a PJL . bas j s because a year’s consumption pared with France and Ital/s 
-'«. n r.ecihi<» to dismiss an worked on a buy ® Kohind one. and In their 6Q-7Dm. hi and even more. 

. ^ The “das- stocks of t69s and "71$ mujtlooj? 
eluding ouite modest French proounaat • A" ^become to these years until, the 7« r s are 

anneUolhm controlee wines steal 75s J®y e < f5^ b S hould offered. They will certayflyseenj. 
and such Italians as Barolo and acpepswe, bu „ Whether expensive,-. until . the nmA 
others that improve with age. JjMjL®*?!* as. eood remains to- dearer-'78s:a«:^vaiilabje. _Bmr- 

This year’s poor vintage in the 7& **•? • ^ a ..Wr gundy drinker^ must -certainly 

g2LT-h^5» L« 

the more moaesi reemu* v™ rr~r" _ l,- ctin,,i-,ted by ■ This year-s poor H na it may he- a- long gunay «**»*«« *“ , r " ^ 

This deficiency has arisen owing JSSi SSrtiSfSfiSid S Germany will have fo«wd SlfSforattos becomw dear- buy the 76s. Some, h^e^ready 

arfissrirs “SEisrs sss.K«ae g-swarts saS 

:!RS“ SSSSttSAV L— »— — - SfflSfWiiss .•H.'sa3iS*!'« 

lack or casn ana me man U' S ""TC «» hear available, raosi r~ .mo * nr tha vintage w earner wrnie ourgumuco, vr^T. 

or ^epiugwiue for uuy length ~ ™e S here wU. olready *-• 

•*IF THEY can really forecast 
share prices or exchange rates, 
or whatever it is, how comes 

forecasting services run yet dis- 
cussed? These are described 

or whatever u «», ^ singer treasurer as 

they are having to scl \ their Ja on technicaUy. oriented 

forecasts for a lwMj? WJ "2gJ* ^es such as can be 
question is only half fair. But deck momentum models 


half satisfactory; and 
impossible to dismiss 

worked uu * 7' h ebind one. and in their 60-70tn hi and even more, 

inslpisflf the actual success iof mU ch better than autumn lists serious merchants Portugal and Italy have had 

exchange rate forecasts on the ™y d fg e V pJJnomic forecasts or will have introduced some new reduced crops for the put few 

doSbtthat some very drinkable good in Chablia) io& 76. / ■ . 

wines will emerge, and; Those "who r fihd the price 

who- buy early m&y wedl later ggyjg rather heavyiin Burgundy 
-congratulate ■ themselves .on g^ould . consider -the finer., 
their perspicacity . in pay mg so wjj 0ne5 , The best vintaga slaee - 
tittle for them. (Whenever 1 ^ was 1876, but there were 
consult my records oi past pu£ some, attractive *75s, and even 
chases, I am nearly always full agreeable 74s ' in Hermitage. 

tulSon? oEe'teS!? to overffi Finally, for' those who at least 
the inflation fector.) bwasionally drink 1 dmmpapw/ 

px chance rate forecasts on tne 
first half of 197S in the Decem- 
ber issue of Euromoney by Mr. 

Stephen H. Goodman, the direc- 
tor of treasury planning: at the 

oithpr the economic iorecasis or win nave iuuuuulto , T „ 

bUnd reliance on the iorward iten ,s. However, for those who years, ^dudmg. 19^. In 
Set, providing in the' periQd like to have at least a modicum Fi^re, ^ter^tte Mdiocre *4, 

CP in Portugal. 20 per cent taj. *«{ £ 

up in Italy, 20-30 per cent up in iSLMirjSffu more c^des aon-Vin^& ak wbU- fa 

Singer Company. 

The conclusion is given away 
.in the title “ No Better than the 
Toss of a Coin.” but it is 
worth investigating further. 
Exchange rate forecasting has 
mushroomed with the spread of 
“dirty floating” and Mr. 
Goodman estimates that «5 
services arc available. To begin 
with, he discarded those which 
were not governed by a 
“ replicative formal model or 
decision rule '* un the grounds 

an average “speculative return 0 f fine vintage wines in their came the generally fine— save 
on capital at risk ” of between reserves, it is more than usually in Burgundy— <6, but the crop 
7 and 10* per cent.' important now not to delay re- was small. Seventy-six was good 

This superior performance of plenishment of stocks. .For it everywhere, but 77 was quaUta- 
the chartists fits in with some is clear that next year wane tively poor almost througbo^. 
highbrow findings of the Bank prices are going to rise sharply; though prohfle m Alsace, Cham-, 
of^ England economisgte (Some an d many wines now on lists pagne and Beaujolais. For 
Recent Evidence of Short Run will soon be sold out. 1978 the statistics are not ye 

TSS overlook the relatively ituapea- ^ng gwset ^ute that .. 

of rising 

J-t J&£L«SJ£. & bSTuSe.^ -*355 

Recent Evidence of Short Run 
Exchange Rate Behaptour, by I 
W. A. Allen and C. A. Enoch, 
Manchester School, December, 
1978). based on sterling rather 
than the dollar, and ori the year 
1976. Their conclusion is that 
foreign exchange markets are 
not efficient in the sense of 

though prolific in Alsace, Cham- among vintage wines, many ^ is n0 g^at point in- Th l ^es present- years’ botti e-age. Jujt 

pagne and Beaujolais. For British “Chants have ^rea^ ^^ hca d most of the Loire gt their^ last *\s 

<a* 7 o 4Un rtnticrHfo nro imt nu^rpascd nnces, ftS students oi - ...inoc with the im- • _ ** » • • Mflu 'in 1 1978 .1 uouffit 

This is not only because this callable, but it is clear that 

fcJSJJSLS&V 11.00m SS-E .“S.i 

1978 the statistics are not yet increased prices, as stuaenB oi 
available, but it is clear that their autumn lists wall have 
senerallv in France it was a noted. In their next lists^pnces 

Sit they merely reflected “to J^iSSST aJl th^retical 
,Tl eCUV chr n d 3 ioT |r f oup P S posrtbilMes of speculative 

tlaily changing group oi r 

Sdre^of whirtfour 1 dropped the Bank* of Englaiid 

year for the wine trade In 
Britain — based partly, perhaps, 
on Neronic principles — and 
because inflation affects the 
Continental growers as it does 
us, but for special circum- 
stances that have come together 

^Inflation apart, the main Mintages, partly because of brisk 
nvinu trarfinp in the last- couple of 

small crop, and in Champagne 
it has been catastrophically 
short— -the smallest in the 

The merchants who buy from 
the growers lack stocks partly 
owing to the deficiency in 
quality and quantity of recent 

‘Saoso insiient dot. ^orsjroely jd-Jt «>,e fact 


trading in the. last couple 

are likely to be higher still. , 
What, then, should we con- 
sumers buy now? First, there is 
no point in amassing large 
quantities of ordinary wines, 
their prices will not advance 
alarmingly and in any case they 
are not for keeping. It is among 
the vintage wines that price in- 
creases will be most felt, in- 

buving ahead most of the Loire problems, though their 

and BhGne wines, wto the am- - . ^ rising ^ after two 

portent exceptions of Hermitage - short vintages, 
and cate ROtie ta the. latter very snort yiaag^. _ _ ^ 

area. Not that an extra case or 

MdRhGne wines, wito the _im- ^ riita g'aiib after two, prices^earlyjn 1878 

oortant exceptions of Hermitage n stages. . some aaiuvinlago . Alfred 

' Gratien for a : tew ■ pence under 

Owing to the lark of |W*«J r 22 a -MeiVNearty sue years 

area. Not tiiat an extra case or - Owing to the larac m a c^e-Nearty six years 

two of a reliable Crozes Hermi- burgundy vintages between 1WL. - ;«maihihe bottles, - 

two of a rename uroes burgundy vintages ' remaining bottles, 

tage or ChSteauneuf-dn-Pape a ndl976 - though there were later tie ^ jemammg p^u^, 
would come amiss, for they are - 5^ 72s — it is not easy now ydUr added 

nearly all drunk too young. to ifnd suitable wines, .^e 7» . are ' dripkliig .aefacwuslyT--one 
Among darets, the vintage to. arernsually very, light ^dv Often- instance, perhaps, of foresight 
ofQ for now is surely 1876, over-sweetened^ - toY. -Tg ^ “* . perznitti ng-* nxpdest amo.unJ . pf 

-attractive, and the 75s were x* 

sstjutu-"?: s-aBss- ~ 

were available. 

Of the remaining nine, some 

that forward exchange rates are 
imperfect forecasts of future 
spot rates does not mean that 
either central -banks or private 
forecasters will do any better. ! 

The correct hypothesis about 
market rates is not that they 


Methods Serpent Prince for Whitelaw 

- - The correct hypothesis about 

Of the remaining nine, some mar j. et j^tes is not that they , . ^ h . E t0 pr0 ve a drab afiair 

six used econometric or afe alwa y s » correct” in some SERPENT PRTNCE, a chestnut fence ****** GrSd Canyon is “ vir 
“number crunching methods definabJe sense< but that u is gej^ng by Prince Hansel, looks mtie Embassy Prqntier Chas mJ ^ race 

m nmvirtr' a sneeific forecast. « n Hn hatter Viv , ik. nn^moi. tm tndav s Qualifier on Novcnaoer 1. aure lain 

Ascot’s .two-and-a-halE to prove a drabafi^rti^year. 
rt rvneg r.ranri Canvon is virtually cer 

10 provide a specific 
Evaluation is itself 
troversial procedure 

Grand Canyon is " virtually cer- 1 
tain to miss the race” accord- 

a cpn- 

very difficult to do better by | 0 ^ . t he answer to today’s qualifier on 1. ine to Derek Kent, who will run 

any formal- process. What feature event at Folkestone the t y. * The Champ Instead, while two 

any torraai- process.. wui feature event ax roiKefiuu*,^ ^ . The Champ Instead, wane wa 

would an intelligent guess be three miles Whitelaw Gold Cup. “ d ^ re otiier stars who will be missing 

because the alternative to using ^ Tbe track record of fore- 1 Josh > Clifford -trained seven- underfoot conditions 

the forecast has to be specified. casters having to earn a living vea r-old jumped bettor than any Serpent Prince can gaan a 
The first test was simply . R ^ ^j-kets? Surely it is of his rivals when third behind deserved success. • 

whether the exchange rate 
moved in the forecast direction 
nr not. The average score for 
a three-monthly forecast was 50 
per cent— equivalent to the coin 
toss. By comparison, use .of the 
forward exchange rate would 
have been right some 58 per 
cent of the time. 

Mr. Goodman also tested 
whether the actual rate pre- 
dicted was nearer to the truth 
than the three months forward 

in the markets ? Surely it is 0 j .^g rivals when tfhird behind deserved success, 
that they would be an the $ wee t Joe In the Sun Alliance Havanus, a powerfully made 
margin of being helpful— with c^gge at Cheltenham's Festival son of Indiana’s Belmont Stakes 
perhaps one or two doing better j^eetixiSi where he finished a W j nn ing half brother, Cavan, 
than the forward markets, but , weJ i i ast term j n his 

are last year’s winner Bache- ecngijggj «T 
lor’s Hall and the Gold Cup OPERA & BALLET 

winner and favourite for next cOLls£UM f ^ l Mraa oi-mo saift 
year, Midmgfat Court. nation^ opera V-‘ 

The plans -of Peter Cundell yuruJri swet av»om. ouoaniiinfl. 
r * — ftrhipuPTnent in- Qpcr* - - 

- ToniS Hi and F»l. 7.00 

(Moat res accOK CJTtal" g o??. sS'jiSo. ‘P»“ r 5^’ 

Klepnone «- at the Bok Otoe, - Zgk %inGTON JOLlA^MeKfiiaZie. . ■ 


fjedlt cards 01-240 52^4 _ TEN TIM Eg. TAKE 

winning half brother, Cavan. fQr seC0IM i Kempton win for 

with no real confidence that the 
same one or two would continue 
to do better in future. 

For if there were a conclusive 
tendency for an identifiable 
group of forecasters to out- 
perform the market, financial 
operators would rush to obtain 
their forecasts and move market 



Quotation: and Ihe result was rates immediately in the direc- 
again 50 per cent nf ihe time tion indicated, with nothing fur- 

OJ- 4*1 ( j UV J'v* V*. '**■ --- _ r ,, .1 

— in other words no better, no thcr to go for. If on the other 
worse. He also has a more hand all the forecasters were 

worse He also aas> a uimc uauu 

complex calculation of the. indisputably useless they could 
•• speculative return to capital hardly .continue in business, 
ai risk " This averaged 1.12 Markets' are made efficient ar 
per cent compared with 2.86 this limited sense partly by tlu 
nor cent if one followed the activities of the analysts, with 

C . .... .. i..MiAnlli, .-..if u-V>nm thotr uimtlri tip mon 

neck -in front of stable mate, 
Modestv Forbids. He put up 
another fine performance 'last 
term when giving Bredger and 
seven others a great deal of 
weight and a decisive beating 
in a twina nd-o-balfinwle faandi- 

Markets are made efficient in caip at Kemptxm. .. 

this limited sense partly by the ; : On his only ^ ^pearanre this 

forward market mechanically out whom they would be more 
(in each case a certain simplify- erratic and volatile than they 

ing assumption). 

season. Serpent Prince did well 
to keep the -nmch improved and 
considerably fitter Carrigeen 
Hill company until the final 

also did well last term in his 
first season over fences; winding 
up the campaign by beating 
Dawllsh. albeit narrowly, in 
Sandown’s Beech Open Novices 
Chase. Reported to be fit and 
in extremely good heart for 
this, fob? first outing of the 
season. Havanus may well bustle 
up the Findon seven-'year-old 
from whom he receives 2 lb. 

An hour later, I shall not he 
looking further than Heidelberg 
for the winner of the Aldington 
Novices Chase over two miles 
and three furlongs. 

The King George VI Chase 
at Kempton, almost always the 
most intriguing event of the 
Christmas holiday, seems likelj 

Bachelor’s Hall have , been 
ruined by the gelding’s develop- 
ing heat in his off fore, after 
an unfortunate landing at the 
second from last fence at Chel- 
tenham; while Midnight Court, 
undefeated in seven starts, last 
season, remains out of action 
through heat in a leg. 

pthb must b* th» l*«{plejt STp MARTIN’S -tti 

cwnHifl . 1 * Sunday TtmM. . •. . . •• . • 

Tomorrow T.Oo' The TnieeWM 

•anal oerl.i. " Ewry weno ortps tto.flgS' 

lion ” Tns. Thur. 7.00 ' JJJJigJ* 



<flayxMv]- Geoffr ey Hiw&jCCgoj y ... 
’•RdBhmr in CHRISTMAS flAYTIME. , 

Oku 23- Jan. 6. 2.15 and 42K>. Sawrtteirt . ■ ■■ - 
T1.00 and 2.1 S. ■ . 1 . — ■ rilu[ 

R ^XT , ^ R on tT wod. ZJO. SA'iSai.1^ VJPW 

kiucessiul and wiioyabl" Gdii. 

?onv Mats wall, ior all nerfc. trwn 10.00. 
on da y or perl. ' 


tGardenciiarac Credit cards 836 

ET' 7£° aj^ l %A!*Wo 0| B.- 


. — « 

- ■t II' 

Ins. Ja= Calendar. 
Sleeping BejutY. 


12.45— Tower Moss 

1.15 — Bold Gerard 

1.45 — Serpent Prince** 
2 J5— Tompion 

2.45 — Heidelberg*** 

3.15— Blue Braes* 

“IhJ* royal opera ■ 

Thun;. 7.50 Jn telo m 


-;.'HAWTHOhne rad 


FMdcrrtiJU* 'd’s Arnpftl' *a»t* 4,1 I i»R MAJESTY'S. CC.’ W-MO 


ISJScai around bar l»owe■^^ , ^ L Mtrrpi;-. 


toft O&t 01^36 6903 "jSSm S^TmTaD THEATRE. 


■826 <735-6. 

:k • 


/ iio^oHT 

to NOON 
in THE 


t Indicates programme in 
black and wbite. 


12,43 pm Midday News. 1.00 
Pebble Mill. 1.45 How Do \ ou Do. 
33U Pobol Y Cum. 3.53 Regional 
News for England i except 
London i. 3.35 Play School. 4 JO 
Deputy Dawg. 4J5 Jackanory 
Writing Competition. 4.40 Screen 
Test. 5.05 John Craven's News- 
round. 5.10 Jackanory Playhouse. 

3.40 Evening News. 

5.55 Nationwide < London and 

0.50 Nationwide. 

7J0 James Burke's Connections. 

8.10 Dallas. 

9.00 Nine O’clock News. 

9.25 Thank You Comrades by 
Jim Hawkins. Based on 
real events in Russia and 

10.25 Sportsnight Special. 

11.10 Weather/Regional News. 
All Regional programmes as 

BBC-1 except at the following 
times: — .. . 

Wales— 5.55 pm Wales Today. 

11.50 News and Weather for Scot- 

Northern Ireland— 3.5-1 Northern 
Ireland News. 5.55 Scene Around 
Six. 6.50 As T Roved Out. 1150 
News and Weather for Northern 

England — 5.55-6.20 pm Look East 
(Norwich): Look North (Laecla. 
Manchester. Newcastle); Mid- 

i Eaa ,, ssstsr - -ms 

eec'i =r-TT« g^A^-WESS 

times:— - - . „ . Sou th Today (Southampton); 

Wales — a .55 pm Wale* T ° d ^‘ spotUght South West (Plymouth). 
6.50 Heddiw. 7.10 Pobol Y Cyra, East (Norwich) Spot 

7.40 It Ain't Half Hot Mum. 11-*® g n , London 3nd South East 

News and Weather for Wales. 

Scotland — 5.55 pm Reporting 
Scotland. 6^0-7JO Songs of Scot- 

The . Osmonds; _ Midlands 
(Birmingham) A Worcestershire 
Carol; North (Leeds) Life-lines: 

land: Film journey from Aberdeen Nort h East (Newcastle) Tuesday 
to the Clyde. 1L.10 Tuesday Night. North; North West (Manchester) 


Ken Dodd’s Christmas Feast 
from Chester: South (South- 
ampton) Hey Look . . . Thats Me! 
South West (Plymouth) Penin- 
sula: West (Bristol) Chinese 
Riddle, Cotswold Key. 

10-30 Breaking Point 
11.15 Lou Grant In "Ghrwlma*. . • 
12.10 am Christmas Pie; "Some- 
thing To Shout About.' 

All 1TV regions as London 
except at the following times:— 


9.30 am Canada: Five Ponraus. 10.25 
Take a Bow. 10.50 You Can Make U. 
11.15 Lord Tramp. 11-40 Oacar. 11 55 
The Sweet Sugar Doughnut. 1.25 pm 
Anglia News. 2,00 Houseparty. 6.00' 
About Anglia. 7.00 The Roll Ha«ls 
Show. 10.30 Auditions 11.30 Weat- 
side Medical. 12-25 am So You ra 


9.55 am Friends of Man. 10^0 Some- 
thing Special. e 11.10 World Lead era: 
Roosevelt. 1,20 pm ATV Newsdask. 
3.55 Tho Elafftnc Theatre Show. 5.15 
Mr. anti Mrs 8.00 ATV Today. 7.00 
Emmcrdale farm. 7.30 Spmnolio. 7.40 
Cal umbo 11.30 Oscar Peterson Pre- 
sents. iz4b0 am Something Diflerent. 

Service «<cupt: 1.20-1.26 pm Panawdau 
Nawvdciiun y DycTd. 4^0 Goghs. 6-00 
Newyddion Nflw8 followed^ by 

Report Wnlca Headlinos. ip.30-11.30 
Bywyd. 11-30 Wodd m Action.^ 

X HTV West — Aa HTV General service 
e%:ept; 1.20-1.30 pm Report West Head- 
lines. 6.15 Report West. 

SADLER'S WELLS -THEATRE, ■ RnjehjrY - - Dirac^d 

S!-5 ylV C , car 8 t 3 e 7 1 i^'cujwr/^awId 

■ SULLIVAN. Eros. 7*30. Mats.. Sats. A V _ oSfi 


SULUVAN. Eros. 7*30. .Mats.. aaiSjW 
Dec. 27. 2. SO- TflnignJ A ,J°?SS 

IOLANTHE. Thur. to Dec. 30 THE 



9.30 am Diary ol Civilisation. 

Tale a Bow. 10.50 You Can Make (l 
11.15 Lord Tramp. 11.40 Oscar. 11J5 
The Swest Sugar Doughnut. T1J5 P™ 
News and weather. 5.15 Christmas Call. 
5.3) Crossroads. 19.00 Scotland Today. 
16.30 What's Your Problem? 7.00 
Emmerdale Farm. 10.00 News and 
Scottish News. 11.15 Dean Friedman. 
11.45 Pro-Celebrity Snooker. 


ADELPHi THEATRE. CC., m-B3€ 761,1 




E*’ NfewS. ''Ai* 
" O. .Mir. "MAY 

SOlHSay. Time*. 
iTRK. 01-493 2031.. 
r. 10.30. 241 AAA- - 

Ercnlngs at 7.30. / 

Mat. Thursday 3.00. Saturda, 4^00- 
Extra MjJ, Wed- Dei- 27 3.0fl. 

An Ench»plln« Mew MusJcal 


■■suhnv”tBnBuJ and 


asB.. T s a ^ay-'qraa - 

LyrTtritW feji-osceninm Aaoem.. Ton's. • 

•ddjomor. 7-AS flS FitH^Snn -THE 

comadybT ChaHm Wood. Tomer. 5,00. -.-penolssfbW.>ni 

BBC 2 

11.00 am Play School. 
t3.00 pm Propaganda with Facts. 
7.00 The Mid-Evening News. 

7.05 International Diving. 

8.05 Mr. Lollipop, !IL\. Play by 
Rhydderch Jones. 

.9.00 R. Traven. 

10.05 Man .Alive. 

10.55 Laic News. 

11.10 The Old Grey Whistle Test 


9.35 am Underjoa Adventures of 
Cep tain Nemo. 9A0 Animated Classics. 

10.25 Tale a Row 10.50 YOu Con 
Make It. 11-15 Lord Tramp. 11.40 
Oscar. 11.55 The Sweet Sugar Dough- 
nut. tl.20 pm Border Nows 2.00 
Houseporty. 8.00 lookaround Tuesday. 

6.25 Christmas Pie. 10.00 News and 
Border weather. 11.30 Ski-mg with 
Gina. 12.00 am Border News and 


■ j 








§1 _ 


j _ 






1 Inn and what it may Mil to 
English drinker initially, 
being interested in the com- 
munity f6. Si 

10 Grey like bird may be (5) 

11 Wherein one may work and 
walk continuously but get 
nowhere (9) 

12 Religious person left ghastly 
original settler (7) 

13 Telephone wrongly^ etc., using 
peculiar speech (7) 

14 One more insignificant nun 

actnr (5) * . . 

16 Old soldier with one shot at 
front, was 19 across i9> 

19 Strait-laced and put iu car 1 

mended «9) . 

20 Plunge round head of river 

and impel (5) 

22 Match the devil! (7) 

25 Doctor returning in snow on 
television is disgusting (7) 

27 Pressure-cooker from car left 
in cavern 4 9 » 

28 Upset dingy and could be 
perishing 15) 

29 Former fairy people agree on 
a trial basis (14) 

7 Counterpart with eastern coil 7J0 Carry ( 

8 Did admit slr'iDgcd instru- 10-00 News ^ 
ment could be made thinner 

1 7 } vto 

9 Specimen, provided by politi- I BBC Ri 

cian in auction (0! . - iK3kHi^8SBi 

15 Trick right for a mechanic j um ttzmsm 
f 9) 

17 Indifference of a French com- n M3hHz«Hni 

nanv (9 1 « WWmuJaOm 

18 SiiV article I tailored — 

badly (9) . , ^ “ 

19 Dined under tree having lobes 

projecting from one centre' RADIO 1 

(7) (SJ Stare- 

21 For example, the engineers 5.00 am As i 

Jn! e an ^ com ® Bifrnen tiicludl 

23 Chopped Into pieces ana and 12.30 pm 

deeply afflicted (3. 21 Blackburn. 4.3 

24 Province of genuine French- ^10.00 John 

man (5) An Radio 2. 

26 Country mentioned in certain vhf Radios 

rtialprrc f 5i • Radio 2. 10.00 

dial errs ini s M am r 

Solution »n Puwlp No. 3.851 


9J0 am Dry Australia. 9.45 
Spiderman. 10.10 Wild Canada. 
11.05 Ruddigore. 12.00 pm Chorl- 
lon and the Wheelies. 12.10 Rain- 
bow. 12JU) A Ripe Old A«»*. 1.00 
News At One. 1^0 Thiiincs News. 
UO Crown Court. 2.00 After 
Noon. 2J5 Raffles. .7^0 Heart to 
Heart. 3.50 The Sullivans. 4J20 
Get It Together. 4.43 Magpie. 
5.1S Emmcrdale Farm. 

5.45 News. 

6.00 Thames At 6. 

6.25 Help! 

6J1S Crossroads. 

- 7.00 Botanic Man, with David 

7 JO Carry On JIatron. 

9.00 Fallen Hero. 

10.00 News At Ten. 


9.25 am First Thing. 9.30 Tandarra. 
10.25 Take a Scat 10.50 You Can 
Mabo It. 11.15 Lord Tramp. 11 40 Oscar. 
11.55 The Sweet Sugar 00110110111. 
1 20 pm Grampian Nows 5.15 Mr and 
Mr a. 6.00 Grampian Todjy. 16.10 
Country For-us. 11.30 Power Without 
Glory. 12.25 am Reflections. 12.30 
Grampian Lam Nows 


9.30 am Tuesday Maimbc. 10.55 
Cartoon. 11.00 Flashback. 11.20 
•j.iO'Jy's Houa». 11.45 A Hnndlul oi 
Son-is. 1.20 |im Thia Is Ypnr Riglit. 
5.10' What's Nsw. S.15 Crossroads. 
6.00 Granada Report-.. 6.30 Emmer- 
dolc Farm. 7.00 Umvarsil/ Challangc. 
11.30 Dan August. 


930 am Animatod Classics. 40.25 
Take a Bow. 10.50 You Can Maks It- 
11.15 Lord Tramp. 11.40 Oscar. 'I- 65 
TI10 Swaar Sugar Doughnut. 1.20 Pjn 
Southern News. 2.00 Houseporty. 5.15 
The Undersea Advanturaa oi Captain 
Nemo. 5.20 Crossroads. 6.00 Day by 
Day. 7.00 Emmarda|e Farm. 7-Ju 
Choilie'a Angela. 3.30 Bless Me Folhor 
11.15 Southern News Estra. 11 « 
Pro- Celebrity Snooker. 12-10 am 
'Weather followed by The Holly and tho 


9JZS am The Good Word fa v 

North East News Headlines. 9.» Hen- | 
cage. 10.25 Take a Bow Cl “ a 

Club. 11.16 Lord Tramp. 11;40 Oscar. 
11.56 The Sweet Sugar Doughnut. 

I. 20 pm North Eoet News and Look- 

around. 5.15 The Brady Bunch. 6.00 
Northern tile. 7.00 Emmerdalo Farm. 

II. 30 Emergency. 12.30 am Epilogue. 

761 1 ■ 

Ci edit Card backings 

ALEERY. SJ6 3E78- CC. BkgS 855 1B71-3 
Fram 3.30 am. P«n» raus. 

F.’ns 7.45. Thur. ft Sal. 4.30 A B.OO. 



° g a.^ 7 ft 2fl e. 29 ; 

|P| ? TOMBV 


2.1 5 p.iti; SaL li- Am; XSd' 2.13 P*"- 
77BS - 

! M.'. 'normal 

1^437 KS12. 

1TW (Bkpii 

l wrad '.tOJW 

□ nrosmts 

Maw 'escaHent cheap sea tg aH 3_U y ea Kg 
dav of pert- Car • porfc. Rasnumn* 92B 
2 033. Credit, card boaMnca 925 3052. 
run vit 328 7616 

Last 4 Parts. Tod* T- Wjfl., Frl.. ^t v _7.M 

At dWYCH. 635 6404. Info. 636 5332. 
repertoire. Tcnlght. . Tcmor. 7.30. Low 
price prevs. Bronson Howard s “medv 
SARATOGA. tFIrst night Thura. 7.001 

«a Fr, i-T^yff-y 28 ™= 

SSf% L,N a? W WAREHOdiSE^ lsee 
under W>. 

S^ld »lrt ‘to mltFw. Quad's Le*>"’ 

F. Times. . — i;.- 

OLD VIC. CC 01-928 7Bie. Back asm«" 
tv aipedal Chri^n^Maum. . . . 
Until January 13 MATS ONLY,. - 
Dl». at 2.00. BVtra perts. Tomor. and 



yrtM HndtSL what Is 
I.SO-adB. 836 3028 

-M-adB. 856 3026 
| 1W1.S. Evd. 8.00. 

Dr 'Tel. ' 

Dlv. at 2.00. BVtra parts. Tomor. and 
Jan. 12 at 10.30 am. Also Sf c - s _nS'- 
29 30 ■ and Jan. 5. 6. 13 at 5.00. 


■“ A t r i u mph - worth travelling miles 

Slr^jL London. W.l. Tel. 01 -«»5 6224. 

Patrick <K0WMhr * Ch, .?f W r'L n rfi eC GmnrJ 
Ar.thonv Mattheson with GtoSa GlBord 
and strvens. Until December lb. 

Mon-Sat. at 1.1S pm. 

to sea. " BBC Radio. 

OPEN SPACE. T P eg. -S lin. B. 3W* -MM 

-awav^: ■ 

listibgrspz ■. w js « 

VESThtlNSne* - -THEATRE. *54 OZB3. 

No Pert*. D« 

Daily, 2.30 end fl. 
Dec. 2T to Jan. s 1 
- ATan 

IE. tot 0263. 
ts. 2.30 and 5.30 
illy 3 00 and 


10.15 am The Herbs 10.25 Tj ke n 
Bow. 10.50 You Cun Make It. 11.15 
Lord Tramp 11.40 Oacer. 11.55 The 
Swael Stiqar Dou-jnnut. T.W pm Ltmcn- 
time. 4.18 Ulster News. 5.15 Ljnonn 
5.20 Crossroads. S.00 fleporis. o.» 
The Maiv Tyler Moore ohow. 7TO 
Emmerdale Farm. 7.30 Feature Film: 
"Murder Under Gleae. 1 

E»s. b.OU. TUl- 5. 2.4S. Sat. 5.00. b.OO. 

“A suocrti pertermancu. FT. 


PALACE. .CC. 0J74B7. ^ fay Tim Rice and 

jSu3 CHRI^ SUPLI«TAR^ . book. ITOwf* 

by Ti m RIOS end Andrew UOTd-WebbW. . 

PALLADIUM^ CC 01-437 7_37S. 1WINC < VJC.J2a 

Preview Tbnt, . 7.30. J 0P*w Tomor. ,^00. 
There. Fri. 7 & «-*«& 

3.35 am Beach com hers. 10.00 Dyno- 
mun— the Dog Wonder. 10.25 Tako a 
Bnw. 10.50 You Can Make It. 11.15 
Lord Tramp. 11.40 Osc&r. 11.55 Sweet 
Sugar Doughnuts. 1.20 pm Report 
VYosi Headiines. 1.25 Repc>rt Wales 
Headlines. 2.00 Houseparry- 520 
Crossroads. 6.00 Report V/est. 6.15 
Report VJales. 6 JO Baton >c Man. 7.00 
Three Luile Words. 10.00 News followed 
by Report West Headlines. 11.30 Code 


920 am Sp.icn 1999. 10.25 Take o 
Bow 10.50 You Can Make l». 1V15 

Lord Tramp. 11.40 Oscar. 11.55 pm 
Sweci Sugar Doughnut. 12.27 pm UUB 
Honcybun s Birthdays. . 1 -®-'C(S s . , ^ ra, , J 
News. 5.15 Mr. and Mrs. 6.00 West- 
ward Piory. 7.00 Treasure Hunt. 10.28 
Westward Late News. 11.30 1 Friends ol 
Man. 12.00 am Faith for Lite. 

APOLLO. CC. 01-477 2663. E»5. B.00. 
Mats. Thure. 3.00. Sat. 5.00 and B.00. 

yen tunny, great entertainment. wm. 

u "Merry' ’ Widow TWanfclf Ip 



hv Tim -Rice- and Andrew, Uoyi Webber, 

YOUNG VIC 928 6563. From Tomoh Eva. 

■YOU NG .VIC STUDIO. -• 92S 6363.' ThH 

•7^43.. Sa 
. tion of ( 

I! Wog- .WR; 

Weela Christmas Festt. _ 

FARI SINGERS. Kins Box Qff for details. 

926 6363. ' ThH 
hnd Toot’ - 8.00 

PICCADILLY. From B-30 am. 457 4S0B.. 


S3r% e ^? , 8t'V4i) 1 ffi , B.ii I 1 «■>- S ^Hwb uni . AV.B3S B3S1 

ARTS THEATRE. . SJ,- 83 ® 213*. 


•■Hilarious - ■ ' t i',5' ln a»' , ,-3 JL- 

Monday to Thursday B. 30. Friday and 
Saturdiys 7.00 and 9.15. 


9.30 am Friends of Man. 10.00 Tree 
Top Tales. 10.15 MV*‘® ri ® u s 
11.10 Flying Jewels. 11.35 Tell Me 
Whv. 1.20 pm Calendar News. 
Calendar Tuesday. 5-15 You're Only 
Yminq Twice. 6.00 Calendar (Emley 
Moor and Belmont editions)- 7.iw 

Road. 734 42B1-4S9 MSI Mon-Thurs. 
B.00 pm. Fn. and Sal- 6.00 and B.45 

Group bootunas Qt-437 36SB. 

Mon.-FrL * S-OO. sat. sns ano g.i» 
- A NPBHTWrm 1 

. DAME EDNA ' , • • 

and -a handiul . of cpfchere 

sta rsa*^ , s®s»aw£r* ,,,, “ r 


^^^'card^k^t 3 ^ Wtf*- 

«^g°g F de ?bisaffi£ tln - 

Daily 1 mm. Sets. 1 1 a.m. md- 2 p.m. 
Evenings 8.00. • Mart;. Thors. Sh. .34W. 

w -nm Rica" ml Andrew ItoN-WtMgr; 
r ' DtreSd by Harold Prince. 

Sen. pern. All seats bkl>lc. 

1- SUPERMAN IA). Wk and Sun. 2JM. 
- S.OO. . fKie. oert. sold out). 

m. 2.09. 5 00, B.OOr - 

SW. 2.00.-: 5.00," -.e.OOr 

-Tube!. 485 744S. THE AOS- DYLAN 
with , Bob Wm and Joan Baez In 4- 
- trade Stereo. PrMA--X50- and -7^0- dally 
ism WEEK. - 

HTV Cymm/Wales— As HTV General Emmerdale Farm. 11.15 Fireside Theatre 

BBC Radio Hew Wavelengths 

1 1053k Hz/SSei ■» 1215k Hi /241m 

1089k Hz/Z75m U & 90-923>hf stereo 

BBC Radio London: 
1458kHz. 266m 8. 74.9vhf 

Capital Radio: 

1548k Kx, 194m & 95J*M 

Bsmonzi: Recital of Italian sunns (Si. 
10 40 The Contest ol Love end Marriage. 
Talk by Laurence Lerner. 11.00 1 Ciecn 
Piano Music by Tomasek. Dvorak. 
Janacek (3). 11.45 News. 1160 

Tonight" ■ Schubert Song (5). 

CAMBRIDGE. CC. 01-836 6056. 
Opens TongM- 7.0. Suto. Ere. B.O. 
Mat.. Thun, ft Sat. 3.0. 

. A new musltal _sarrino 


PRINCE or WALES. 01-930 86*1. Credit 
Mr* taOfctoRS 9-30 Mon 40 TBUfS. 

CLASSIC. »; 2. 3, 4. Oxford street [opp. 
TotteniUfn Court- RA Tubel. 636 0310. 
D and A'preps. child ran hair-price, 
li RJcJnrd^ Adem'e. WATERShip down 

; .•«ai."£ss , &»EHSr ,c “ und - 

».*5, AOOi 9;1S.. ih3. 

2l. lAsT 2 DAYS!' PIRANHA OO. 2. TO. 
SAD. 9. TO. -CARRIE [XL SAIL -7*25. - 

3:-.LAST Z..f DAYSI . Gonerfe** Bui old. 

/'If vou do not Ink. U 1 *' . P* w 
A WWQHd Thtatre produgtlotiw . _ 

QUEEN'S. - ’credit 535: 0?-7»jL ”m'-' 

E afeJI^-i3KSfc«iig?- w' *&!*&■ 

COLLEGIATE. 01-B36 6056. 

mtematlo^Ngr. I-*** ^ 

jan. 1-6. 3.00 and 7.30. Book Now. 

3!j'3JAST 2.r DAYSI . Generfe** Bui old. 

" nw ‘ 

4 1 ^HITLER. A CAREER LA}. Proas. IAS, 

TIER LA}. Proas. 1-45 r 

A 2n»Hx/I500m 
^ & 92-9S *M 

London Broadcasting: 
U5UK2. 261m & 97JvU 


6.00 am News Briefing. 6.10 Forming 
Today. 6.25 Shipping forecast. 6.30 

COMEDY. CC. 01-030 2573 

EH 8.00. Thur. 3.00 and 8.00. Sat 
S.15 ana 8.30. 


MAGICAL." TTmee. UI. Sup. 

CURXort, Curron Street.- W.l". 499 3737. 
you" ■ laughed; at his affair . . . 


(Ena fish sub-titles}. Film at ,2.00. 4.05. 
. 6.20, BAD. Last 2 days. 

Tho Delectable BRITT BU 

PHOENraTTHEA™*. CC 01-B36-2364. 

Ew D 8 i2Su w ^w' ™iw j 

j»rog*. wk. 1.30.- 5.00. 6.10- Sun. 3.30. 

■ ■■7.«BS. JHpita. 8.10 : prog . and - weekends 

Ctfuow. HaWmartcet- t9S0 2736-21 
2-30- S.SOJVM. s.mT.fiAT seats h 

(SJ Stareaphonlc broadcast 
5.00 am As Radio 2. 7.00 Oave Lee 
Travia. 9.00 $imon Bates. 11.31 Paul 
Burnett including now Top 4Q discs 
and 12.30 pm Newsbeat. 2.00 Tony 
Blackburn. 4.31 Kid Jensen including 
5 30 Nows beat. 7 JO to 10.00 as Radio 
2. 10.00 John Pool (3). 12.00-5.00 am 

^VHF Radios 1 and 2—5.00 am With 
Radio 2L 10.00 pm With Radio 1. 12.00- 
5.00 am With Radio 2. 

introduces Round Midnight, including 
12.00 Midnight Nows. 2.02-6.00 am 
You and the Night and -the Music (S). 


MmwVwnR woop' 

ip- prs; Dlv. 
seats bkble. 


. a m □ 0 b b , 

n a 0 H-a □ s 


5.00 am Nows. 5.03 David Allen (S) 

including 6.15 Pause for thought. 7-32 
Terrv Woun (3) including 8.27 Racing 


2 In revolt on gun-carrier but 
may recover (9) 

3 Row right for a large ship (5) 

4 Spiteful woman a mother 
managed in a boa* (9) 

5 Carry on a lawsuit involving 
soft metal <5l 

6 Caught in the very act, having 
no black cards (3-8 ) 

□ & , 


g EDEB" 

■ n • ; . 

iBEna e ataaasaEasHG 

jn i r j, m h a . 

0 G^ET • . 3 0.0; 


Terry Wogan (3) including 8-27 Racing 
Bui Inirn. 8.45 Pauaa lor Thought. lO.ra 
Jimmy Young (S) including 10.30 
Cricket: Second Teat. 12.15 pm 
WacioneiB' Walk. 12-30 Harry Howell s 
Open House (SI including 1.45 Sports 
Desk. 2.30 Dovid Hamilton (Si includ- 
,nq 2.45 and 3.45 Sports Desk. 4J0 
Waqg oners' Walk. 4.45 Spone Desk. 
4 47 John Dunn (Si including 5.45 
Sports Desk. 6.45 SR 1 * “ff* 7 -S 
On The Third Beat (S). 7.30 Folk 76 
,S) presents the Tannahill Waivers. 
8.02 Tuesday Night is Gala NjgM (5K 

R.\DIO 3 

tModium Wave only 
(5.35-10 .05 am CncVet: Sacond Teat. 
Australia v England. 6.55 Weather. 
7.00 News. 7. IK Overture (SI Elpar, 
Vivaldi. Chopin. Bax (mono)-. 8.00 
News. 8.® Morning Concert {51 
Meillart. Mocari. Griog. Ibert. 9.00 
News. 9.05 This Week's Composer: 
Tchoikovaky (SI. 10.05 Holiday 
Soccial (SI Awrah's Music Box. 10JS 
The People's Oratorio: HHndol s 
Messiah. 10.55 Dehnanyi (S). 12.00 pm 
BBC Woish Symphony Orchestra (S) 
Concert (pari 11: Briiten, Mozan. 1^0 
News 1.05 The Aria Worldwide. 1-20 
BBC Welsh SO (pan 2): Mathias. 
Mozan. 2.05 Music at St Georges^ 
Bristol {S}. Brahms. Debussy. 3.0® 
Chnstmaa Choral Music (S) Concert 
(part 1). 4.(E Interval Rending. 4-'° 
Cfincert (part 2). 4^5 Paganni (S)- 

5.15 Jazz Todav (S)-. 5-45 Homeward 
Bi-iind ( SI. 6 30 Nows. 6.35 Schnabel 
plays Beethoven. 7.30 Karl Rohm ana 
The LSD Con con (pan 1J Weber, 
Schubert (S). 8.M) The Italian Univer- 
sity in Crieis: Talk by Jonethan Stein- 
h*ra. 8.30 Karl Bohm and the ISO 

Ih WtS: S ouvimirs (Sl^® JjUSLjSu S Th'e 

jss-ttk^spsa-ass « *««■ •» car, ° 

News. 9.05 Tuesday Call: Exploring 
Outer Space. 10.00 News. 10.05 local 
Time. 10.45 Morning Story. H-00 
Thutv-Minuie Theatre: ' Tha Baitto ol 
the Booze." 11.30 Farm Chat. 11.45 
Listen with Mother. "12.00 pm News. 

12.02 You and Yours. 12.20 £?%*** 
Island Discs. 12-55 Weather. 1.00 The 
World at Ono. 1-40 Tho Archers. 

1.55 Shipping forecast. 2.00 News. 

2.02 Woman's Hour. 3.00 News. 3-05 
Mistinguetls, star ot the French music 
hall. 3.35 No 37 to Greenland (playl. 

4.30 Announcements. 4.35 "The Thiriy- 

Nine Steps." 5.00 PM. 6.60 Shipping 
lorecast. 5.55 Weather. 6.00 5(» 

O'clock News. 6.30 The 27-Year Itch 
(S). 7.00 News. 7.05 The Archors. 

7.» File on 4. 8.00 Our Care and 

□slight. 3.45 One Daqroo Ovar: Climate 
Modelling. 9.30 Kaleidoscope 9.B9 
Weather. 10.00 The World Tonight. 
10 Z5 Market Trends. 10.30 You've Got 
To Bo Jok'nn (S). 11« A Book o: 
Bedtime 1 ’‘The Enchanted Places 
11.15 TVee Charades tor Christmas.. 

11.30 The Unlorgettables. 12 00 am 

Ne»vi. 12.15 Shipping ferocasr. 

VHF—6.M am V/ith If. B.30 With ». 

6.50 Regional f!«ws. £.65 With IT 

7.50 Regional News. 7.55 With II 

12.55 pm Regional Nows (except London 
and SE). 1.00 Study on 4: "Digamo” 


By Michael Hi&Hnei 
"Cemlc delirium as stroke after stroke 
ol OiuUPa demolishes British effwlatdom 

DRURY LANE CC. 01-836 8108. Mop. 
to Sat. £.00. Mats. Wed. and Sat. 3.00 

“A rare- devastating, joyous. «to™ming 
stunner . 11 S. Times. 3rd GREAT VbAR. 

RAYMOND ASVUBBAR. CC- 01-734 1 593 
TiSSk V8.W-. Opm^ Sum 

■ - PA M.-- RA YMOND oreMItS ■ 

. -nre . mretrvAL of erotica- 
, •' Pufiv- efr-condiHcHMKl - - .7 

aist «tNF*T10NaL YCAR. - . J...- 
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ROYAL ALBBRY HALL.___01-5?9 Wlf: 

OOBOH. Lvlceetert square- I9®0 *1 til 
•■Progu Dfr.; bPOTS- opgii 1.30. 4:30. 7>4S. 
Q°agj l_...Mqr Wa-A reh t "W.'2. r72S zon-2). ' 

rwt'.OlRi.. doonr open iao. 4J0. 7.4S. 
fmtacr chakus. Vdc-'sd. ip ji.j;. 
;Walert|a_ fiowTSyk'* - THE ... BOAST 

sssi^, - Np7 * t 

DUCHESS. 838 8243. Mon. to Thun. 
Evenings 0.00 Frt.. Sat- 6.15 and 9.00. 
9th Sensaiiotul Year. 

"The nudiir Is stunning .*■ Dally Mall. 

ROYAL COURT. 730 -T74& 

V XvePbwt Mm- to Sir. af-J.OO'. rHr 
" . prfiEELCMAlR. WILLI 
-jj,, a(BP. Brevm • 

SCENT A tWardcwe St -1 Lek^. JMK --409 
FUPTtRMAW {A>. PrtWS. i 40 . 
■v£.2S Ht.tO. Lte. jhow- Frt-. and -9RS JO^S 

"Funny - wefoundly RMorUr. 
.mo." DBlhr. TeJPBraPh/ .. 

*1 Sr ^r.-VOrtord Oias. *37 

a. AgJWje C bristle's.' 08 ATH ON"THE 

DUKE OF YORK'S. CC. 01-896 5122. 
Ey>- Sum. Fn. aad Sat. S.30 and 8.30. 



"IS BISS. ' Observer 

Dally Tclapranh. ■ 

ROYALTY: ' =: CC. _ 01 . 6TO4 . 

Mnnd*y-ThJjre(l»V_eWtUiw 600. F»l«y 

5.30 and^JLftl Sirarcm 3.0n and 6.00. 

P!Sf /*>- S4P-- wf». D*r. . 3««. S^ 0 ' 

8 - 00 . Late. show sac, 14 . 00 . Seaifc bkWe. 
J- JIB, Cteybvrefc" 4 fibn Bares U* PsjS 


-fWr Press. 

Boot: bY-tetoohoro fo* - th* enure. Tam Hy. 
/ •• tm parking. 

FORTUNE. E 36 22319. Em. 8.00. Thors. 
3. Sal 3 ft B. .Dec. 26 ft 27 5 ft B. 
Murk-1 Pivkw* as MIM MABJLE 

SAVOY THEAT RE. - . _ ‘ " •_ « 'Eg, *«#* 

^ SS «SS - • 


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Ids® - . Vi.'Mte^ow.stf. .1145.. 


GARRICK. CC. 01-8*5 4601. Eras. 8.00 
{sfiarn' Wed. S 00. Sat. S-M and B.ZO. 
New Thriller 
DEATH trap 


to) "Wry fcNGENious. very funny. 
' VERY tXCITIHG." FM». Times. 

whose Ufa, b rr anyway 

by - Brian OarX. " A momentoos tfav. 
urea, you W «• H : Sdn. J*etiTnO B^O.l 1 

Maty. Wiw5. 3 QO.. Un. "5>W aruf ws, . .1 

r : ?*SF6»rt Skcwt 734. gsa 

Mm.'WeL •XPa;:San.?3.4S 'and' CA5V . 

HAITOHURY CC 8W 6398-7. ABB J a 55 " JOf inwy Hawfciipwirth ftfrj 

2.00 tfid ’6 M. Prices £5; £4, £3. U. ■ “ AS YW LIKI st " • • v 

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Serpentine Gallery/Knoedler Gallery 

Riverside Studios 

Two sculptors — Flanagan and Caro Play Away 



The excellent Riverside 

It has become _in recent years 
a .commonplace of art - world 
cpnversation.'ymr. matter 'what 
else ' may., now ■ b.e said of_ our 
painting, . or even our music, 
theatre end literature, that we 
are at least, a nation of sculp- 
tors; and;- certainly enough 
artists within, the last two or 
three generations, have acted 
upon the 'remark: -with - an 
attractive . and 7 . comforting 
plausibility. Two.of the most 
interesting “and actually influ- 
ential of ; them are currently 
showing., in iondohr' artists 
ma rfcedly different each to the 
. other; In temperament pre- 
occupation, and the method 
. and nature of the Work, and yet 
: whose histories cross, and who, 
. in the event,, prove to bo 
curiously complementary. 

-Both of' them have been 
closely associated with the -St. 
. Martinis' School- of Art in the 
Charing Cross Road, most par; 
ticolariy Anthony Caro, around 
whose energetic teaching and 
practical example developed a 

sculpture school of lasting 
signifi cancel Sut by- the time 
Barry-TTanagatt' -arrived there, 
as a -student, in. the middle 
sixties, Caro was on the point 
of leaving. :^»e school itself 
after ten years or : .so of excite- 
ment hardening..' into cn 

academy-' And. Flanagan found 
himself . reacting > against all 
that St. Martin’s . had come to 
'stand for, the' hefty materials, 
industrial methods. bright 
.colours, the' open plan, and 
.above - til - - the - Tuf-booted 
seriousness of It' alt '* 

The path for him' of truth 
ito; : material took quite another 
direction, melon tog;' towards the 
simplicity and directness of 
'the pbjet trouvd 'ois the one 
.hand; and tot£e.deHcate. ironi- 
cal, surrealistic Intervention on 
the other: and, as we can zee 
from the. evidence of his rciro- 
spetfiYe exhibition, now at the 
Serpentine, (until January 7), 
he turned out !to be ingenious, 
or perhaps it js devious enough 
to encoinpas^. them both. His 
early work was -installed quiie 
as much as it;r-'v/as marie, rnpe 
and hessian land sand, and 

canvas sand-filled tubes, poles 
and bags, heaped, folded, trailed 
about in a disarmingly, discon- 
certingly off-hand way, he very 
much the metteur-en-sc&ne. And 
of course it til caused a certain 
amount of paio, for too many 
of his fellows, home from a 
hard d3Y with the arc welder, 
it seemed unacceptably flippant, 
unserious, easy; -to the general 
public it seemed hardly to be 
-art at all, and all the more in- 
furiating so. Flanagan’s work 
has suffered seriously in the 
past from direct action, most 
notoriously at the hands of 
philistine under-graduates in 
Cambridge in 1972, for nothing 
infuriates the man in the street 
so much as the thought that he 
may have missed the point. 

Flanagan. lias always been 
something of a tease, which Is 
botit his great strength and a 
weakness, a limitation: for irony 
and wit properly deployed can 
cut through to the truth with 
wonderful economy: used care- 
lessly or too much they lose 
their edge. Looking back, much 
of his work at around l.’ie turn 
of -the decade does seem limited. 

and not a little dated, limited 
in fact not only by its self- 
conscious variety of image, 
material and scale, but more by 
its anxious, unfailing cleverness, 
its desire to stimulate and 

Those floppy towers, though 
still engaging, are tireder 
now, and not in the least out- 
rageous. Only an occasional 
piece, a small heap or pile 
from 1968 or thereabouts, the 
Pile that the Tate owns, for 
example, a stark presentation 
of four variegated hessian 
blankets folded neatly one on 
top of another, just as they 
might be on a recruit’s bed, 
and exactly as they were col- 
lected In fact from Russell and 
Chappie, the canvas mer- 
chants, retain their old sub- 
versive impact and sense of 

But Flanagan has continued 
tn mature as an artist, and 
through the seventies, while 
remaining as informed as ever 
by Tbe lightness of his touch, 
and his wry sensibility and wit, 
his work has grown ever more 
straight-forward, unaffectedly 
matter-of-fact, positively tradi- 
tional. The jokes are still there, 
the puns on substance and 
image, the geutle nudges and 
suggestions towards other refer^ 
prices than the mere matter of 
the work itself, hut they are 
now less emphatic, more mis- 
sable and ambiguous, and thus 
more rewording. Jack Horner 
continues to null out the phuns. 
but has given up the self- 

Wigmore Mali 

; blew met*! piece', 1 ^ 3 , by 6 zrry Hanagrn 

. ’ * jT -7 

Flanagan’s particular gift is 
10 ta’re his material, man-made 
or natural, and by touching it. 
modifying it sometimes only 
marginally. making it bis own. 
It becomes almost a ritual act 
of signification, an Indian sign 
on a true, an ancient trace 
scored deep into tho stone, or 
a rolled ball of baked clay. 
Some of his most beautiful 
works, and the mosr powerful 
in their effect upon the 
’nation, are t^e small 
totems, cairns and offerings he 
made in just ibis way. discrete 
elements of clay and stone 
lumped together. 

In his more recent work he 
continues to put distinct 
elements together in a partieu- 
Iv relation, but he now insists 
more upon their* separateness, 
putting things out and arrang- 
ing them once more. And be 
has also been following thronfih 
a sine'e sculptural ploy, turning 
two dimensions into three by 
the simple exnedie-'t of a c»»t. 
a transformation that miebt; 
first have occurred to him while 
peeling an apple. Its largest 

El Cuarteto Espariol 


by ART H U S 4 A C O B S 


"With a quartet by Villa-Lobos, 
the last.- of the -scheduled items 
on their programme, Sunday’s 
Spanish visitors’ made some; 
Thing memorable of theif 
London debiit. Formed , over ' a 
decade ago from leading players 
of Spain’s "Radio/Television 
- Orchestra, El Cuarteto Espanol 
has made repeated appearances 
in South America and its mem- 
bers- have evidently mastered 
the piquant lively idiom of 
Brazil's celebrated composer. ' 

Fertile' though Villa-Lobos 
' was, I doubt if this quartet 
(played from manuscript) was 
really- his seventeenth, as stated. 
But whatever the number; some 
British group ^should grab it at 
once. The sinewy and singing - 
qualities of its! -four movements 
.were brought -out tritb -subtlety 
and strength by these Spanish 
performers. The finely graded 
range of tone and expressive- 
- ness was notable: 

In the more strictly classical- 
reaches of the " string quartet’s 
repertory, . . the performances 
were less happy. First came the 
Quartet no. I by Arriaga, the 
gifted Spaniard who died in 
1826 before reaching the age of-.- 
20; then ■ Mendelssohn's tn E flat, 
opus 12 . 'Hie- impression here 

was of a dull style of playing, 
Jiritb the leader (Hermes 
Kriales) fallible in intonation 
and the cellist (Enrique Correa) 
not always providing a suffi- 
ciently firm bass-line. The 
younger members of the quartet 
(Joan Lluis Jorda, violin, and 
Emilio Mateu, viola) showed up. 
more attractively. 

The -inclusion in the pro- 
gramme of Debussy’s .Danse 
.sopr&e et danse profane was 
little more than an' excuse to 
welcome . the justly popular 
Spanish harpist resident in 
London, Maris a Robles. Even 
with some thoughtful rfe-scoring 
to; make up for the raising 
double-bass line, this perform- 
ance with string quartet could 
not be other than an apology 
foe the correct version with 
string orchestra. 

After the Villa-Lobos, as an 
encore to end the evening came 
another specialised and convihe- ! 
tog item-TrLo Orocidn del Torero j 
by Turma, one of the few ! 
Spanish contributions to t^e i 
regular repertory of quartets. 
I have never spotted anything 
of the bullfighter in it, or any- 
thing of prayer, but a- perform- 
ance- so assured and so ner- 
vously alive brought its own 
purely musical satisfaction. 

When is speaking singing? 
And what’s the distinction 
between hun-ran and artificial 
sound? AU Jive werks in Sunday 
afternoon’s stimulating contri- 
bution by the four singers of 
Singcircle to the current 
musICA series explored answers, 
to one or other of these ques- 
tions. BUI Martin's A memory 
of the players in a mirror at. 
midnight- was a straightforward 
interweaving of spoken and 
sung words, the inflections of 
the former creating the outlines 
of the latter; Joyce’s text 
proved ideal for the treatment, 
though the dissolves sounded 
over-clear and the development 
of the idea Jacked force. Kevin 
Jones’ Text years was entirely 
built from dislocated phrases 
and syllables, reassembled and 
developed with taut imagination 
— again, complexity succeeded 
more than simplicity, and just 
Avoided the piece's tendency to 
sound like ?? Geographical 
Fugue of the '70s. 

Less impressive for their 
cogency, but equally neat in 
their individual premises, were 
Simon Desorgber’s Uproar 
(which was no such thing, but a 
rather twee collection of imita- 
tion-electronic vocal sounds 

which became violent and then 
subsided) and Gregory Rose’s 
It’s a Flash (which did justify 
its title in an attractive series 
of sudden events over long- 
srstained lines; a diverting but 
diffuse conversation in noise). 

Most imaginative of aU. how- 
ever. was Simon Emraerson’s 
Ophelia's Dream I. Created with 
an ear for drama as well as for 
pure sound, it placed a soprano 
within a nest of microphones. 
Her angular, stuttering medi- 
tations enveloped us from the 
four corners of the theatre, 
while three onlookers com- 
mentated tersely, in simple 
chords, on her distress. A pity 
that, towards its close, this 
piece turned into a virtuoso 
demonstration of voices and 
time-delay systems sounding 
like synthesisers. One sensed 
in more than one of these 
pieces a didactic attempt to close 
the gap between vocal and elec- 
tronic music, to prove tint 
humans can make quasi-elec- 
tronlc noises. Why? Highly pro- 
fessional performances of this 
professionally put-together set 
of works from Singcircle under 
Gregory Rose, with Simon 
E miners on manipulating some 
unusually efficient sound equip- 

Roundhouse Downstairs 

Wigmore' Hall 

The Sadistas Yevgeny Nesterenko 


This more, sophisticated-ver- 
sion of the Sadista.' Sisters have 
taken' up residence Downstairs 
ar the Round House last’ week- 
end and next. It is very, much 
the mixture as before, three 
actresses’ backed by an almost 
all girl rock bank taking a view 
of. life which blends the femi- 
nine with the subversive with 
the.surreaL On. the last occasion 
I saw the Sadistas I thought tbe 
material needed tighter editing 
mid the production a firmer con- 
trol There has been some im- 
provement, but the naive and 
the embarrassing still come, up 
against the. witty and the per- 

There can be few reservations 
about the band, which has pro- 
duced some excellent wistful 
~ songs," bird’s ' eye view from 
the .'alternative sqciety. The 
sketches in between are much 
more hit and miss. At their best; 
as- in. a. P^p at a woman’s. 

encounter : group where' the 

tyrant - in charge creates 
imaginary problems for. ther 
regular .disciples but just . caa- 
jwrt cope with a revolutionary, 
. advocating real action, there; is . 
relevance and humour. At their 
worst, , r as in a shock find!' 
number, intended to play on 
everyone’s pet aversions, the 
feeling of sickness is for, the 
performers rather than in the. 

But there are good things; a 
monologue about meditation 
and* finding the right guru Was 
worthy of Peter Cook In his ' 
sensible days, and the psychic 
trist - forced - to cope with 
Medusa was a good idea, nicely 
earned through. The final feel- 
ing is still one of the noveJty- 
of. the enterprise, mixed with 
appreciation o£ the nrusic. The 
Sadistas face all kinds of prob- 
lems in mounting shows, hut 
there are signs that they bave- 
tbe talent to develop to time 
a really effective underground 


■ The Nesterenko voice, stupen- 
dous bass though it is, proves 
to take as well to the recital 
hall as to the opera house. On 
Friday night he sang Shostako- 
vich and Mussorgsky at the Wig- 
more. with the excellent 
Yevgeny Schenderovitch at the 
piano, and made a powerful 
impression — no hint at all that 
this might be an evening off 
from more serious business. The 
Russian repertoire is of course 
.uniquely generous to the 
operatic basso, who can revel 
in songs which don’t require 
him to trim his sails (and even 
then, at the end of the pro- 
gramme, Nesterenko allowed 
himself a Volga Boat Song 
which fairly shook the hall). 

-. It cannot be easy to begin 
ah evening with Shostakovich’s 
Michelangelo Songs Op. 145, for 
. they . are neither Immediately 
engaging nor interpretatively 
.straightforward. Nesterenko 
struck the tone of bitter sobriety 
art once and sustained it coxn- 
mandingly through the cycle, 
which be made a continuous 
whole in effect Shostakovich’s 

own label “ Suite " - seemed 
altogether too modest Schen- 
derovitch made much of the 
hard, spare piano-writing, and 
neither artist let the tension 
relax for the love songs. The 
cycle rose to a height' of im- 
passioned declamation with the 
hammer-song “Creativity," and 
they let the weirdly hlithe 
epilogue on “ Immortality ” 
speak for Itself, without added 

The Shostakovich was perva- 
sively solemn, though sung in . 
superbly dear diction and with 
balanced finesse; Nesterenko 
displayed a grand, unexpected 
range of vocal colour in Mus- 
sorgsky’s Songs and Dances of 
Death. Conventional basses act 
the introductions and sing out 
to the main sections, but this 
singer made each song a vivid 
scena with* no sense of verse/ 
chorus divisions. Without resort- 
ing to any contrived delivery, he 
kept narrative and dialogue dis- 
tinct, and dramatically compel- 
ling. The sensitive flexibility of 
the voice was a natural-seeming 


demonstration sits happily on 
the grass outside, a strange 
metal beast among the trees. 

Back in Bond Street, at 
Kuoedler Kasmin (until Decem- 
ber 231, Anthony Caro’s most 
recent works, what he calls his 
Writing Pieces, they too evince 
this same sense of well-being 
matched to a natural delicacy 
and lightness of touch. They 
are all small, indeed well salted 
■to the large white table-top on 
which they sit; and they are 
most impressive evidence of the 
artist's apparently effortless 
command of his medium, light- 
hearted exercises in virtuosity. 
He has thrown together junk 
and scrap from the studio floor, 
old tools, this and that, and in 
doing so has produced work that 
goes far beyond the mere tech- 
nical. formal demonstration: for 
the odd thin” Is that such 
material is full of association 
and unexpected resonance, 
which combine to invest each 
new entire with a most lively 
and equivoe?! character, a 
private, untenable history. 

And what they show so 
dearly, what we should have 
had the sense to see long ago, 
is that Caro, in spite of all the 
theorising and analysis, all the 
talk of schools and influences, is 
essentially an instinctive artist, 
who picks up the stuff he has to 
hand to see what comes of it. 
There is r.o formula, do pro- 
gramme. but simply the urge to 
touch, to mark and to make. This 
too causes pain and some con- 
fusion in the ranks, for disciples 
need their leader, and such 
panache and skill and hedonistic 
self-indulgence are very discon- 
certing. What can this work be 
about; what are the ideas behind 
it: what is it trying to say? 
Sculpture is a very serious ! 
business. Flanagan and Caro < 
together, with considerable flair 
as we!i as skill and originality, 
give that dour heresy the lie: 
thank goodness. 

Studios’ - Christmas entertain- 
ment for children is “Play 
Away,” lifted whole and in the 
flesh From Saturday afternoon 
television; and though it is 
neither pantomime nor child- 
ren's play exactly but rather a 
whole - hearted, fast - moving 
variety show, it does indeed 
provide an admirable seasonal 
treat. Tbe BBC admits to 
aiming tbe programme at a 
middling age-group, eight-to- 
twelve or so, and the show 
remains reasonably true to that 
audience, full of cracks and 
gags, awful puns and dire jokes, 
every one of them gleefully 
excruciating; and the child 
needs a sharp ear, and even 
sharper play-ground wit. who 
is to catch them all. The noise 
and excitement generated by 
the theatrical performance is 
indeed a very load and far cry 
from the intimate attention 
available at the television-side. 

This show, nowever, to its 
great credit, while remaining 
irrepressibly itself, uncompro- 
mised, also accepts the farts of 
its translation and supplies 
something for everyone. The 
matinee audience I joined was 
predominantly very young 
indeed, some of it well under 
school age, and yet, though the 
jokes were a shade sophisti- 
cated, the pace of the perform- 
ance. the enthusiasm of the 
company and the happy simpli- 
city of the sketches and slap- 
stick together kept attention 
and participation unflagging 
throughout “ Life is Buti^-. 
Melon. Cauliflower." as one very 
small boy declaimed rather than 
sang as his part in the general 
round-son g. 

Brian Cant heads the breath- 
less four-man company, marvel- 
lously outrageous as school bo v. 
rock star and Brian's auntie 
from Inswieh; .and the others. 
Tony Robinson and the tv’o 
"iris. Anita Dobson and Julie 
Stevens, are each just as cond. 
be'tim out >h° son- 1 ?, stoteallv 
enduring riddle and trick, 
racing Frora quick change to 
atiick change, school-girl, enw- 

'is M i 

Brim Cant 

girl, Martian. Jonathan Con.-i •.-g., v "• s: riou fly trualed by 

and the band r.ustni i it al) v:’ , h if?. F.cbirrm to write a Imre 
•jreat calm, an ocean ot sanity e*say on “ Whs.*. I enjoyed runs: 

in an oasis of madness. 

At the interval the audicnr; 

abc"* my visit to Riverside 
StedT.s *’: well, I vujjrhed a Jot. 

Beverly SiL ? s to head New York City Opera ' 

Beverly Sills, America's most dom. 

fammii; living soprano, has been H' r -s S'Ts’ eponintment is be- 

Eapied director of the New York I*pvari to he rhe first time since 
Cire Opera to replace Ju ,: u* the earl'- 2Pih c^nti-w that a 

Eiid"\ di r ectnr 'tc? 1 SS7 and h-s become head of a 
the man who guided her to star- ’•i.t'o- American ooera. 

New iwng 
December 19, 1978 

All these bonds having been sold, this announce- 
ment appeals as a mailer of record only 



DM 150,000,000 

334% Convertible Bonds due 1988 








Abu Dhabi Investment Company 
Alahli Bank of Kuwait (IC.S-C.) 
Algernons Bank Nederland N.V. 

A-E- Amas&Ca. 

Amsterdam-Rottenfam Bank N.V. 
Arab African International Bank - Cairo 

Credit Lyonnais 
Crmfito ItaHano 
Dai-tchl Kangyo Paribas I4<L 
DalAcbi Securities Co., Ltd. 
Daiwa Europe N.V. 

Morgan Stanley International 


National Bank ot Abu Dhabi 

New Japan Securities Europe 

Richard Daus & Co. 

The NBtko Securities Co. (Europe) Ltd, 
Nippon European Bank S A. 

The Arab and Morgan Grenfell Finance 

Company Limited 

Associated Japanese Bank (International) 

Den Danske Bank 
at 1871 Aktieselstab 

The Nippon Kangyo Kakumaru 
Securities Co- Ltd. 

Boche Halsey Stuart Shields 

Bancs Commerdale Italians 
Bancs del Gottanto 
Bancs Nazionale del Lavoro 
Banco (fl Roma 

Den n Drake Cradrtbenk 

Deutsche Bank 

Deutsche Girozentrsie 
-Deutsche Konununalbank- 

Nomura Europe GmbH 

Nomura International (Hong Kong) 

Norddeutsche Landesbank 

DG Bank 

Deutsche Genossenschaftsbank 

Bank of America International 

Bank Julius Baer International 

Bankets Tkust International 

Bank fOrGe m ei n wtrtschaft 

Bank Ot Helsinki Ltd. 

Bank Lau International LtrL, Nassau 

Bank Mees & Hope NV 

Tbe Bank of Tokyo (Holland) N.V. 

Banoue Bruxelles Lambert SJL 
Banque Franpalse du Commerce Extariaur 
Banque Generate du Luxembourg 
Socidte Anonyme 
Banqoe de Hndochine et de Suez 
Banque Internationale a Luxembourg SJL 
Banque de Neufllze, Schtumbargar; Mallet 
Banque de Paris et des Pays-Baa 
Banque de Paris et des Pays-Bas (Suisse) SJL 
Banque Poputabe Suisse SA. Luxembourg 
Banque Rothschild 
Banque de I'Unkm Europeenne 
- Banque Worms 
Barclays Bank International 

Beyerieche Hypothekan- und 

Beyerieche Landesbank Glrozentrala 


Joh. Berenberg, Gossler A Co. 

Bergen Bank 

Berliner Handels- 
und Frankfurter Bank 

DU! on. Read Overseas Corporation 



Drexei Burnham Lambert 

Euromobinara S-p.A. 

European Banking Company 

Robert Fleming & Co. Limited 

Gbozentrate und Bank 

der osterreicMschen Spatkassen 


Goldman Sachs International Corp. 

Okasan Securities Co„ Ltd. 

SaL Oppenhebn Jr. A Cia. 

Orion Bank 

Osakaya Securities Co* Ltd. 



Privatbanken Aktreseisfcab 
Reriouf ACo. 

Rothschild Bank AG 

N.M. Rothschild & Sons 

Salomon Brothers International 

Sanwa Bank (Underwriters) 

Sanyo Securities Co„ Ltd. 

Groups ment des Banquiers 
Prtvds Genevoia 

J. Henry Schroder Wagg & Co. 



Singapore Nomura Merchant Banking 

Hessische Landesbank 
- Girozentrsie - 

HJK Samuel* Co. 

SJcandl navis ka EnskUda Ban ken 

Smith Barney, Harris Upham & Co. 

btdustriebank von Japan (Deutschland) 

International Credit Affiance, Limited 
Hong Kong 


Socle to Generate 
Societe Generate de Banque SJL 
Sparbankemas Bank 
Sumitomo finance International 
Svenska Handelsbanken 

Kidder, Peabody International 


Swiss Bank Corporal ion (Overseas) 

Ktelnwort, Benson 

Taiyo Kobe Finance Hongkong 

Kredistbank N.V. 

Krer&etbankSJL Luxambourgeoise 
Kuhn Loeb Lehman Brothers Asia 

Tokai Bank Nederland N.V. 

Trident International finance 

Kuwait Foreign Uncling, Contracting 
* Investment Co. (SJLK.) 

Trinkaus & Burtchardt 
Union Bank of Finland Ltd. 

Blyth Eastman Dffion & Co- 
International Limited 

BSJ. Underwriters Limited 
Caisae das Depots et Consignations 

Chase Manhattan 


Chemical Bank International 


Christiania Bank og Ksedttkasse 
Citicorp International Group 



Copenhagen Handebbanfc 

Kuwait Interna tl on aHnvestment Co. s.a.k. 
Kuwait Investment Company (SJLK.) 

Landesbank Rheinland- Pfalz 
- Glrozantmte - 

Union Bank of Switzerland (Securities) 

Lloyds Bank International 


vereins- und Westbank 

J. Vontobel & Co. 

Loeb Rhoades, Horn blower International 

Wako Securities Company 

Manufacturers Hanover 

M.M. Warburg-Brinekmann, Wirtz * Co. 
S.G. Warburg & Co. Ltd. 

County Bank 

McLeod Young Weir International 

Merck, Rnck A Co. 

B. Metzler aeeL Sohn * Co. 
Mitsubishi Bank (Europe) SJL 

West LB Asia 

Wood Gundy Limited 

Yamaichl International (Europe) 

Yamatane Securities Co- Ltd. 


Crfcftt commercial de France 

Mitsui finance Europe 

Yasuda Trust * Finance (Hong Kong) 

Morgan Grenfell * Co. 



Telegrams: F inanHm n, London PSA. Telex: 886341/2, 8S3897 
Telephone: 01-248 8000 

Tuesday December 19 1978 

tteech on the Conservative 
pproach to the British 
eonamy, delivered in Padding* 
an yesterday, was widely billed 
i advance as a carefully calcu- 
Ated retreat from the 
Aonelarisl policies associated 
. 'ith Sir Keith Joseph and 
nparently endorsed by the 
"ory Party Conference in 
irighton last October. In fact. 
I turned out to be rather less 
Iromatic. though what it was 
neant Lu achieve — apart from 
>apering over the cracks in the 
’arty — is less than clear. 

Market farces 

Mrs. Thatcher endorsed the 
ncomes policy set out in The 
liu.'il Approach to the Economy , 
viiich she has not always done 
n the past. At -the same time, 
lowevcr. she omitted to mention 
lirectly what has become of its 
host contentious point: namely, 
iiat “ ths Government must 
:crcc to Koine conclusions about 
-he likely scope for pay in- 
creases if excess public expendi- 
ture or large-scale unemploy- 
ment is to be avoided; and this 
aslimale cannot be concealed 
from tiie representatives of 
employers ana unions whom it 
is consulting." It is that state- 
ment which has become so in- 
volved in the argument about 
norms and averages for pay 
settlements as 1 well as the 
present Government’s five per 
cent guidlincs. and which has 
Jed to considerable embarrass- 
ment within the Tory Party. 

in so Tar as she referred to 
it at all, Mrs. Thatcher said 
that one of the main features 
uf the Conservative approach 
was “ recognition in both public 
and private sectors of the need 
Irr varied rates of pay with ia- 
e -eases which reflect supply and 
demand, skill, effort, experience, 
risk and the employers’’ capacity 
tu pay.” 

That statement can be read 
in a number of wavs, the most 
obvious «£ which is that it is 
a plea for .greater reliance on 
market forces to establish tbeir 
civn kind of equilibrium. The 
aiternetivc readings are (a) 
that is a call for some sort of 
relativities Body to intervene 
when market or political forces 
tecome too frightening and tb) 
that it is somehow compatible 
v.iht The Tiipht Approach and 
the government's own calcula- 
tions about what the economy 
can afford. 

All the objective evidence is 
Xs.i'l Mrs. Thatcher herself would 
prefer to rely on the markets 

and that she regards that parti- 
cular section of The Right 
Approach to the Economy as 
no more than a pale version 
of the incomes policy now being 
pursued by Mr. Callaghan. Yet 
the fact is that she does- not 
say so, or at least she does not 
say so consistently. The moment 
that Mr. Heath or Mr. Prior 
step out of line with her own 
thinking, Mrs. Thatcher trims. 
The trimming may, of course, 
be tactical In the interests of 
party unity, but a leader who 
cannot be consistent in opposi- 
tion scarcely inspires confidence 
that she would be consistent in 

Mrs. Thatcher’s back-tracking 
on the Brighton Conference is 
the more surprising given her 
emphasis on one other feature 
of the Tory approach — the need 
for what she described yester- 
day as “ open discussion and 
explanation between Govern- 
ment. employers, unions and 
all interested parties, so that 
people know what is happening 
and why." If there is one sub- 
ject that needs explaining again 
and again to the public — to 
employers as well as unvros — 
it is the workings of the market 
economy. If the Conservative 
Party really believes in the 
market, it needs to say so now 
— as Sir Keith Joseph, to his 
credit, has done. To twist a 
phrase from Mr. Heath, it is a 
time for words, not action. ' 


There is one further aspect of 
Mrs. Thatcher's speech that 
deserves, comment The Tories 
are again beginning to face the 
question of trades union reform, 
as indeed would Mr. Callaghan 
if he knew how to do it Yet the 
approach outlined yesterday re- 
mains hesitant to the point of 
an apology. Tt is one thing to 
mention concern at some aspects 
of the closed shop and the possi- 
bilities of extending the secret 
ballot. It is quite another to 
fact up to the fact that strikes 
are talcing place — as in the case 
of Ford— which are quite un- 
necessary and which are totally 
in breach of contract- 

The Conservative Party might 
not know the answer and indeed 
that is a perfectly respectable 
position. But at least it might 
admit more openly that the 
problem exists. Sooner or later 
face up to the fact that strikes 
and responsibilities will have to 
be tackled at the national level. 
That means seeking a consensus 
with the unions and with at 
least part of the Labour Party. 

s new 

election has turned out to be a 
much greater success for Dr. 
Kenneth Kaunda than most 
people had expected. Against 
a background of severe 
economic difficulties and an 
e-calating conflict with 
Rhodesia. his countrymen have 
given him a convincing new 
five-year mandate. 

Officials of UNIP, Zambia's 
only party, had feared a low 
pn'l and a large ** no " vote. 
Under Zambia's one-party 
system Dr. Kaunda's name was 
th? only one on the ballot paper, 
with voters either backing his 
election with a “yes” vote or 
opposing it with a ■’ no " vote. 


In the event, 65 per cent of 
cligibile voters went to the 
pulls, a major improvement on 
tiie 40 per cent of five years 
ago. While there was a sub- 
stantially higher ” no ” vote in 
percentage terms. President 
Knunda saw the actual number 
nf votes in his favour rise sub- 
stantiallv over 1973 — up from 
530.000 to 875,000. 

A vagurous “ vote yes " 
campaign, which allowed no 

dissenting opinion, was doubt- 
less a contributory factor in this 
result. Nevertheless, the elec- 
tion has demonstrated once 
more the remarkable popularity 
of President Kaunda, even at a 
time when his country's 
economic fortunes have sunk tu 
the point where there are 

shortages of such basic com- 
moditfies as sait and cooking 

The result will be. an 
important psychological buost to 
the President and should enable 
him to cope better with the 
difficult times which lie ahead. 
The confrontation with Rhodesia 
and Zambia’s economic prob- 
lems are bound to have a 
destabilising effect. It is all the 
more important that Dr. 
Kaunda should retain the con- 
fidence of the majority of his 
countrymen. Certainly, Presi- 
dent Kaunda is likely to view 
his success as an endorsement 
of his uncompromising attitude 
towards Rhodesia. Opening 
Parliament yesterday, he argued 

that the crisis would only be 
resolved by war. 

The election was, however, 
preceded by some unsavoury 
political manoeuvring which 
prevented two other Presi- 
dential hopefuls — Mr. Simon 
Kapwepwe and Mr. Harry 
Nkumbula — from challenging 
President Kaunda in the poll to 
choose UNTP’s candidate. 

The party rushed through 
amendments to its constitution 
which meant that neither Mr. 
Kapwepwe or Mr. Nkumbula 
were eligible to stand. It is 
unlikely that this affected the 
outcome, but it is regrettable 
that UNEP, which prides itself 
on Zambia’s “ one party partici- 
patory democracy," should have 
taken such action, smacking of 
cynical expediency. 

Thai said, it is to President 
Kaunda’s credit that he should 
have let this month's elections 
go ahead as scheduled — in the 
wake of Rhodesia’s major raids 
into Zambia, which could have 
given him ample reason for 
postponement The election re- 
sults suggest mounting concern 
over these raids. It seems sig- 
nificant that the 11 no " vote was 
greatest in Southern Province, 
which has been worst hit by the 


Over the coming months 
Zambia is certain to become 
more and more embroiled in the 
war and it will reoiu'rc all Dr. 
Kaunda's political skills to see 
stability maintained. 

IMF condition 

Unfortunately, there seems 
little relief for him on the 
economic front. Despite the 
President’s decision in October 
to re-noen his railway links 
with Rhodesia. Zambia’s back- 
log of Conner export-; is still at 
a verv high leve 1 . The countir 
remains eriticallv short of 
foreien exchange. Its arrears on 
payment fo r irnnoris stretch 
hack 15 months and it has been 
finding it difficult to keen com- 
pletely to the terms of its TWF 
standby loan *«repme"t. The 
Trunin? yca r looks like hem? as 
difficult for the Zambian 
economy ?n v ' since indenen- 
dence — and that seems certain 
to reduce the President’s room 
for manoeuvre over Rhodesia. 


M R. Anthony Wedgwood 
Berm, the Energy Secre- 
tary , said yesterday that 
the forthcoming 14.5 per cent 
rise in world oil prices was 
“not good news for jobs, for 
trade and for the UK economy 
as a whole." 

His gloom was echoed by 
governments all over the 
Western industrialised world. 
They had known the Organisa- 
tion of Petroleum Exporting 
Countries was going to push up 
oil prices but the four stage 
increase announced on Sunday 
was steeper than most of them 
had expected. 

Despite the general pessimism 
it is still too early to make any 
firm forecasts as to how hard 
Western economies in general 
and the UK in particular will be 
hit. But there is some evidence 
to suggest that Britain may be 
able to weather the oil price 
rises better than some of her 
trading competitors. 

For a start, the effect on the 
UK balance of payments will be 
negligible. Britain’s current 
annual consumption of oil 
stands at 93m tonnes but North 
Sea production has already put 
the UK more than halfway along 
the road to self sufficiency. It 
is estimated that the UK’s North 
Sea wells will have produced 
between 53m and 54m tonnes by 
the end of this year. The 
expected figure for 1979 is 
betwen 80m and 90m tonnes. 

This means that by the end of 
next year Britain will be almost 
wholly self-sufficient in oil. As 
a result, the Department of 
Energy is estimating tbe net cost 
to Britain of the OPEC price 
rises at somewhere between 
£50 m. and £100m. The exact 
figure will depend on the rate of 
North Sea oil production during 
the coming 12 months but even 
at the upper limit the OPEC 
prices rises will cost the nation 
less than did the Ford strike this 

Oil companies operating in 
the North • Sea were /scarcely 
jubilant yesterday about tbe 
OPEC oil price rises, yet the 
picture for them is not entirely 
bleak. This is because the 
increases could provide them 
with an opportunity to improve 
their overall profit margins on 
oii products sold within the 

At present profit margins on 
all oil products are depressed 
compared with what they were 
three or four years ago. And 
in reaJ terms petrol prices are 
now lower than they were just 
before the 1973 OPEC oil crisis. 
One of the main reasons for 
this state of affairs bas been 
the UK Government’s approach 
towards passing on oil price 

The Government prefers sub- 
stantial rises in the price of 
petrol to increases in the prices 
of heavy fuels. This is because 
rises in rte prices of process 
fuels for manufacturing indus- 
try have a far stronger impact 
on Inflation and on the retail 
price index. They tend to have 
a multiplying effect with semi- 
finished product industries pass- 
ing on their cost increases down 
the line. 

On the other hand, rises in 
the price of petrol can be 
passed straight to the consumer 

• \A , ; 

■ • 

■ v;m : - 

After the OPEC talks; Dr. 

Sheikh Ahmed Zald 

price index too fax. As a result 
without pushing up the retail 
heavy fuel prices have been 
kept artifically low over the last 
few years while petrol prices 
have gone sharply up. One oil 
company said yesterday that 
petrol prices had risen twice as 
much as heavy fuel prices over 
the last three or four years. 

But the soaring cost of 
petrol has not benefited the oil 
companies — it has merely led 
to a pump price war. The 
increases in petrol prices have 
encouraged the Russians and 
the East Europeans to expert 
cheap petrol to the UK so forc- 
ing the oil companies to 
subsidise many of their retail 

The latest OPEC price 
increases' could therefore give 
the oil companies an oppor- 
tunity to improve their margin* 
all round. It is thought they 
will be pressing the Govern- 
ment hard for permission lo 
spread the OPEC rises evenly 
over all their products. This 
would mean a rise of between 
2p and 2.5p a gallon on both 
petrol and heavy fu^ls. • 

If the Price r-'n’p i' r! m 
accepts overall rhvs >’ 'r s s 
order— end with p? r s ?vt ! ' , n 
coming up next year K i? a hig 
if — the oil companies ’■;?!» be 
able to recover some of tfjeir 
margins on heavjf fuels while 
keeping petrol orjees to reason- 
able limits. Lower rises in 
petrol prices will not stop the 
Russians and East Europeans 
exnorting cheap petrol to the 
UK, but it sftould reduce the 
■incentive to/do so— especially 
now that the price war has 

Mas a Saeed al Otelba, UAE Oil Minister (left), dances on Satnrdayitiiig^, while Saadi Arabia's 
Yamani tells a Press conference that he w'as not happy with the outcome of the meeting. . - 

started lo die down with all the 
oii majors taking a tougher line 
on pump prices. 

The oil companies are dlso 
anxious to recover some of their 
ov n increased internal costs. 

They have already been hit by 
dollar exchange rates, by 
increasing wage bills and by 
such things as ths present 
transport drivers’ overtime bon. 

Wlmn the present round of 
OPEC increases start coming 
through it will also put up the 
tort of the oil needed to keep 
refineries geinp.- 

One oil major said yesterday 
that an extra lp a gallon on all 
oil products would probably 
cover the increase in OPEC 
crude prices while a further lp 
to Lop would enable oil com- 
panies to recover some of their 
costs and redress the balance on 
their margins. 

Suggestions that petrol price 
rises might well turn out to be 

oil price rises will, not 
severe as far as' od major^ 
operating into* • 

concerned. ■ 


months of 1979 whenfte^., 
•5 per .cent OPEC nse.faRe&t • 

effect— rthey ,wUl have 

until March tor a Price Cbnuafe-..' 1 
•sion- verdict on thar own. pw-: 

: jected increases. • ■ _ -i . . • i'X.’j 
.-. This overlapping period ^ . 
be a tight one for the 1)3 majors ;:, 
but if they persuade the.Gevfefte, ; - 
ment of their case for spreag“~- 
ing the OPEC rises evenly over v 
all their products, -they.-iW.-’L 
actually derive some 'mJMS&V-. 
' from the increase in wopa^flo V 

• prices. .. : 

The obverse of the' 
coin is that oil product .. . H 

. are goihg to go up ano.wmeme?^ ■ - . 
the emphasis of - the- -in creas ed - 

• is" on petrel at. not, ittdnstiy.~38 * 
going to .have: to- face: hiffM&y .'/ 

■ costs.-: .v . 

■Transport - costs wHl - 

if the -Oil companies have' 
way, the cost ■ of process 
-wifi £it many . mannf actiurfng . 
_' industries as well, \The'priw£pfc ^ 
consumer goods will be fOrcQi.;' 
dp as a result- The effect of .jag;-: . ' 
; OPEG , price . increases 

■ -U.S: dcanbmy will .be, .partma-y, 

.larlyrignific^htlThd^^dOun . 

_ meht of a 14.3- per cent 0!?EC; 

. jnHMease-^rWhleh- ayeragfe.tnA:^^ : 
,10 per ceht over tfte yedr-^ha® 
alrtady eaused^ ^despreid'-rallsr • 
r in the dollar. The dia jfHOSayrise&v _ 

- added tp President VOtt^s-. v 
anti-inflation package in Noy'eitt-r- ' ; 
.ter, will further, - s 

1 prices of; manufacture# .'goods- 1 
in the U.S. Whiie-at the^SaShf. jj 
time reducing 1- demand, y Tte 




the existing differential in the 
prices of light crudes — for 
which there is a high demand 
— and the heavier varieties. 
The aim of this is to help OPEC 
members such as Nigeria, Libya 
and Algeria which geared them- 
selves to supplying the Euro- 
pean market at a time 

trade and Axis wbuldlcleariy3iit_ 
emsgaratjveiy low there m -Iittte: ^ aM Continental industrial : ' 
incentive for in a us try. to use 

n^Iacgments. If the dollar. were .to; fall teufc-i • 

the 'hew OPEC prices, U tey-' 

■thing, - North Sea prices Will rise 

slightly- higher because ot the ' 
.=Tbe price of N orth Sea crude, 

gehcraHy will rise in. line WitK: '• 

® -^ members to insider, reducing • 

ime when ■ present loading on refineries ia : .. 

freight charges were high. . . : the’U.S. ' ~ V > suppllea^ of ' 


dbitend for light oil 

- if _ .■ is thourirt m6^ : hnlitel3 r tliey 
capacity. «- ;W6uld : 'do this! .The net' effect 

.reduce their" 

IKS. refinln^ 

Xo r lighter'crodesb^a^ 


charges have now 

revenues and therefdt# thfeii; 

the price differentials, while 
helping some of the African oil 
producers, will also mean that 
ccmpartivelv modest were lent heavy fuel oils will continue, tp 

added weicht yesterday by the 
Department of Energv. The 
Department predicted that the 
nil coKDantes would do their 
test to avoid nutting too much 
of tbe OPEC nriee rise burden 
on pefrnl and would try to 
soread the cost to other pro- 
ducts. It s?id one reason for 
this was th?t tb*? O’l comoanies 
were anxious *o avoid setting off 
ano f her Diimn nr'ce wor which 
ponM r-» d in so^e o f them los- 
ing m/rl-pt shares. But if the 
nr.norn.ment do^s not allow the 
OPEC increases to be evenly 
soread across alt oH nrorfucts 
UK four star netrol prices are 
likely to go up by roughly 4p 
a gallon. 

mcmrnng petroi witna iow«a- spending pdwer indtKa would ‘ " 
gJS 13 li^drfeat tte wtelev^ert 

Freight charges have now P^.cent ■ 

fallen substantially ahd EUro-' a °“ ^ 

pea a buyers have started look- means the he€d to hltet i :ll-the l4i5 per cedt prijse rise. . 
ing to other light crude . wflBP n, gearings is 1 likelyk^n dobs; not" desired 

suppliers. But a widening of u.S. demimd tori’ |tf - ir.'te .mote Tikoly that; 1 - 

parted light crudes' (Stm:higter..' pPECi.Woulfl IpoK agaip at. the. 
The net effect .could he -!to pusir possflbflity- of r'tesm g' 
uplworid pricai of ^ ^anrcqri^s 

.^s weiL- — . o ^.^ra^gAJhaoLjaL j hfl j jdauhtfui 

North Sea oil lv:n,ijghter.bll' doUar.;"'.'.. ;: '. • 
ana its sales coiild merefore . , In the meahtfmeftte ^effect of 
benefit from U.S. nfeeds. - The r k weak UK ; dollar is belay 
I^S. buys most of . hs lighter'. offset by. % tte present .^ 
crudes from Nigeria and Algeria • turinofl’ iit Trim.. '.The epthade 
but if light oil prices went'up- ih .Triurian - ojl prodiictien - is 
in line with demawi in these., 'likely : -tb H.te .van -: teportant ■ 

be comparatively cheaper than 
products made mainly from 
light crudes. This is another 
reason why the oil companies 
are anxious to spread the OPEC 
price rises evently across their 

The oil companies, point out 
that the UK seems to be taking 
its time over substituting coal 
and nuclear energy for some of 
the heavier fuel oils. They 
insist that the process needs to 
be speeded up so that once oil 
supplies start to dwindle, crude 
products can he directed to the 
areas where they are most 
needed such as the petro- 
chemical industry. 

countries then North* Sea. light, thdugfri calneictefctaJ ^factor in 
oil — exported mainly to the rest .. ensuring fbt OFEC 'price 
of Europe — would almost rise . does-' bite*— at Jeast in tbe 
certainly float upwards too. The ' ' jfp one knows 
UK is not currently a . major how quicSiy nOnnal -oil produc- 
exporter of oil hut higher prices, tion in Iran, wfil te ro&ined but 
for the oil it does export would , _ there seern^ IfttleTlikhUhood of. 
still benefit both the oil com- ^any;' saddeir^tojiovement in 
panies and the nation — if only ae rituatfon re.- ’ The Shah’s 
to a small extent. troubles cotddi:;inaire<Sly help 

In a number of ways, there- to .ease . the financial .path of 
fore, the Impact of the. OPEC somo of his OU-fii^dliytig allies- 


The old school 

“ Enter a new world at 
Harrods ’’ runs the advertising 
and a special correspondent has 
just been finding out how new 
that world is. Having left school 
on December 1st my friend 
joined the seasonal Influx to 
Harrods of Oxbridge candidates 
on December 4th. By December 
Bth their influence was visible 
in the sign on a plucked turkey 
saying “ostrich.” An American 
who saw the fowl in question 
was overhead extclHng: " Gee, 
Henry, doesn't Harrods stock 
absolutely everything? ’’ 

• It has proved an exciting 
period. One young Scottish lord 
who had given himself out for 
wages, hiding to cool off after a 
row with a client, knocked him- 
self out in a wine cupboard. 
And this weekend, armed 
raiders snatched £25,000 in cash. 

Our correspondent had been 
hoping for immersion in the 
vast ocean of the real world 
hut complains that it proved 
little more than a paddling 

"It must be an Irish cracker— 
it says 'When is a pound not a 
pound?’ " 

pool. Indeed there have been 
gripes tht the atmosphere was 
one not of leaving school but 
of returning to it. Equipped 
with pencil, paper and black- 
boards the bright young 
entrants for university places 
found themselves battling with 
note taking. The prefects and 
teachers for their part were 
replaced by the more rigid 

hierarchy of the Duke of 
Edinburgh's outfitters and the 
Queen’s suppliers nf provisions 
and household goods. Assistant 
buyers have to be addressed as 
Miss Y and a mere glance from 
a buyer causes elbows to rise 
from counters .or so my corres- 
pondent assures me. 

But. however. little matters 
arc changing wi.bin Harrods. 
outside it seems the image is 
not what it was. My colleague 
in the next-door office has just 
switched his presents from Har- 
rods bags to those of ?<Iarks and 
Spencer. And looked up 
guiltily when I found him doing 

Aiming high 

Aims, the free enterprise 
organisation, dues not "'like 
Quangos. In fact it is going to 
“exterminate ’them,” or so 
Aims' director. Michael Ivens. 
warns. Ms weapon for this 
merciless battle? The cartoon. 
.- So I tyas told yesterday by 
Alms as 4t launched a £200 
‘■reward” for any graphic 
design describing che quasi 
autonomous non-governmental 
organisations which Whitehall 
has been happily planting in 
our midst “ If you cannot draw 
a letter will do," Aims adds 
•“The public reaction has 
been immense," it assures me 
about its earlier cartoons. 
These have appeared in papers 
ranging from the Times lo ths 
New Statesman— all or them as 
advertisements. Aims se-ems to- 
believe -that one picture tells 
5.000 words, though cartoonists 
might question how much It has 
arkled to their art, i 

One of its offerings shows a 
man dreaming of five years* 
more socialism and seeing a 

woiker struggling with ttte oars 
of a boat with Wedgwood Benn 
as >ls figurehead and five 
bureaucrats as the cargo. Even 
the most charitable observer 
would hardly credit this with 
Eublexy: the judges will pre- 
sumably be looking for other 
plus points. As for the Civil 
Service Deportment, this told 
me that it would surely be 
rather “ tricky ” to portray a 
quango:- “ Since it is a subject 1 
cf current po-Hrical interest 
civil servo nis wouldn’t want the 
em-barrassment of getting 
Involved," it added. 

EMS and UDl 

As Ireland, joins the European 
Monetary System the fires of 
' revolt seem lo be stirring in the 
Isle of Man. “ We must contem- 
plate whether we might sec the 
Irish Punt as more acceptable 
and replace the English pound," 
says the island’s Government 
Treasurer. William Dawson. 

Tbe Manxmen have long nre-. 
ferred their own style. They 
have 50p notes and £1 coins — 
though these have proved col- 
lectors’ items more than cur- 
renev and the only commercial 
sighting of the £1 coin was when 
one was mistaken! v given over 
in n shoo as a 5p piece. 

With Irish and English money 
circulating freely the situation 
seems more tricky there than in 
the Channel Isles. There Jersey's 
economic advisor, Colin Powell, 
yesterday: “It is in the UK’s 
end our best interest for mone- 
tar' union to continue 

In the Channel Isles the idea 
of Jersey settine lip its own 
central bank and breaking awnv 
from monetary union with the 
UK and the sterling area has 
bean riiscusred m the d.-w. The 
idea was firmlv reacted te 
Jersey's " chancellor.” Senator 
Cyril Le Marquand. in his 1976 
budget speech, but it is not long 
since the EEC neeotfaUons when 
Geoflrev Rlppnn told the island's 
leaders that If the terms asreefi 
for them were not acceptable 
they could nopt for complete 

Nonetheless in London today 

a different view prevails. The 
Bank of England argues that it 
is very unlikely that any of these 
islands would be invited to join 
the EMS v/ithoqt Britain's 
encouragement and -the Horae 
Office puts it eves more 
strongly. “ For foreign: dealings 
they are part of 'the UK. They 
have no choic-i in the matter.” 

Russian Rolls 

"Above average - suspension 
comfort,’’ seats in “tasteful 
velour” which "conform to the 
body,” a stereo radio and a 
220 HP V-8 engine are among 
the accoutrements of Leonid 
Brezhnev's luxurious limousine, 
according lo an East German, 
motoring magazine. Allowed 
a closer look at his new Chaika 
14 than most Russians this 
praises its “good qualities on the 
straightway ” which might be a 
diplomatic way of questioning 
how well the 20-foot car corners. 

The car reaches 60 mph in 15 
seconds and has 'a top speed of 
110 mph. It weighs 2.5 tons, 
which would seems to indicate 
some bullet-proof shielding and 
is virtually hand built at the 
Gorki heavy truck plant It also 
has transistorised ignition for 
those cold mornings in the 
Kremlin garage, electric win- 
dows and air conditioning. 

Just as Stalin's old Zil used 
to look like a 1939 U.S. Packard 
so tbe Chaika 14 at first glance 
resembles a Lincoln Continental. 
Recently Jimmy Carter has been 
travelling to couniries'like .West 
Germany with his own car and 
should Brezhnev try to do the 
same fn the U.S. hi* can’ rest 
assured that the Chaika’s fuel- 
consumption— 17 miles' to the 
gallon— will hot yet run him 
foul of Ihe federal authorities. 

Fickle memory. 

One more in our scries of 
frustrated shoppers; "I am look- 
ing for a Christmas carol." 

“By Charley Dickens, sir?” 

“I don’t care who sings it as 
long as it is cheerful,” 


%:■ ’• 



Limited / 

Erwlir Brecher, Chairman,. reports: 

© Operating Profit increased by 109% - _ _• _ r 

© Good prospects for the full year • ; 


30 SEPTEMBER 1973 . 

Six months to 30 September.' 

'■1978 - - 1977 

...... (unaudited) -^unaudited) 

Group operating 
profit £963,510' 

Group profit after 

tax, exceptional ’ ■; - . \ 

items .and minority ■ ■' 

interest £400.064 £360,975. ’ 

Sharehoiaers’ funds ££.107,527 . £5,596,427. 

- Tear to- 
3U78 ' 

£460366 ' £1.378,978 

- . -£463.948 

B re mar .Holdings limited, Bremar House,- Londoh ..W2 1PT 
Telephone 01-262 5000 . ; Telex 21969 

v- ■■■'' • Limited- yryi':'/-.-:. 

© Net n* venue before tax incressitf' by - 
©- Interim dividend increased 'by- 
Q .iNctesset value per share increased by- - •• 

„ !•; - 30 SEPTEMBER 1978 ; "> 

\ : -; I.478 r '• 

" ' 30,971 

£31861' :' : :; 

• Ii37p;- ; 

Group'htt revenue. , j . ^ 
Interim .dividend-- per- share 
(payable ffijuraary 1979) 
Earrilngs per share . v.. 

Net aisec.'yalua.per- r .share 

- •- tb 




r% > 

Bremar^Trosl Umired, pr^mir ldhdbri'' V92 'If*T" 



Financial /Times Tuesday ^ecemlJer 19 1978 


Tuesday December 19 1978 


V Vi 


■’ - ’■ I*rja 
.1 ■ 

-; l: ^ 
Sr l 

■ ' ■^ 1 ‘ 

on the 

By W. L, Lnetkens . 

CAN ADLANS ARE having- to 
live with no fewer -than five 
uncertainties ?■ bedevilling . the 
political and economic future of 
their country. Some will be 
resolved in 1979 or at least be 
brought closer to resolution; 
others win remain open for a 
longtime. ' - • ; 

Who will win the elections 
that ihust;be held by next July? 
Until that is known theTrudeau 
Government will continue to 
suffer from a progressive decline 
of authority. 

How far and how fast will 
Quebec push Us case for more 
self-government, and. how will 
English Canada respond? The 
next milestone ta likely to be a 
referendum organised by the 
Quebec Government, some time 
after the federal elections. 

What if anything can be done 
to amend The Canadian consti- 
tution? The desire to turn it 
into a. firmer framework for 
French-English relations, in 
Canada is the key task here, but 
many personal and regional 
aspirations enter into 
contention. - 

What immediate measures can 
be taken to restore the health 
of an economy which has pro; 
vided . Canadians with a v^ry 
good standard of : living, but 
which has not been able to re- 
duce high unemployment:, and 
has run into severe external' pay- 
ments problems? ’ 

What, if anything, needs 
doing to change the structure 
of the economy? This ‘Is an 
argument almost as old • as 
Canadian .confederation and 
really revolves around the rela- 

The slide of the Canadian dollar may have brought the economy within sight 
of a recovery, but unemployment remains high and the fortunes of the Trudeau 
cabinet are at a low ebb. In Quebec, a provincial Government dedicated 

to sovereignty is digging in. 

tlonshlp with the VS. There 
always has. been ra school of 
thought that wants- lo reduce 
the' ' economic dependence of 
Canada on its southern neigh- 
bour. There js'little reason to 
suppose that it-wili maXe much 
more prpgress now than in the 
past. ;-.' • 

The shaMness' of the Liberal 
Government . :;of /Mr. Pierre 
Elliott Tnideaq became obvious 
for all to s«; dp Qctober 15, 
when it wsS iTonndly - defeated 
id a series/ qI -,16 /liy-elections. 
Not. a - si ^ Liberal was 
returned frtiitf'f* coftstituency 
outside Quebec.- :Everi" in that 
province, the-.traditional strong- 
hold 1 of the. LiberalSi they were 
■rtrriggiing. - though hi the end 
they, held one' .safe . seat, lost 
none, aad took hde off the Pro- 
gressrivo Conservatives. 

On the evtdehceof ‘October 15 
one would have' to conclude 
that Mr.- Joe dark, leader of 
the Progressive; .Conservative 
Party, will become Prime Min- 
ister in 1979. But he has been 
on top of the world before and 
then fallen back dgain, judging 
by the public .opinion polls. 
There is little reason to sup- 
pose so, but fortunes could be 
reversed once more. 

Mr. Trudeau has' fought back 
with what should" -be a moder- 
ately popular budget and by 
faying to spruce up a~ distinctly 
ragged looking -Cabinet. Mr. 
Robert Andras, a good adminis- 
trator, has been Appointed presi- 
dent of a newly created Board 
of Economic Ministers. His job 
will be to keep a check ou Gov- 
ernment programmer that have 
been proliferating to the accom- 
paniment of waste and ; bureau- 
cratic complications, iifpqlitical 
terms the Board is to persuade 
Canadians that fhelr economy 
is being managed purposefully. 

The shuffle was also .intended 
to spruce up a- caiungt which 

had taken on a tired look. Mr. 
John Turner, who resigned 
from finance in 1976, is gener- 
ally considered the only 
plausible Liberal alternative if 
Mr. Trudeau decides to give up. 
The decision would be bis alone, 
and is therefore hardiy 

A sharp attack on waste in 
Government programmes from 
the Auditor-General during 
November has played straight 
into the hands of Mr. Clark 
who is preaching economy in 
government to free resources 
for industry. One of the ideas 
he is toying with is a “sunset 
clause “ In every piece of legis- 
lation starting up a new pro- 
gramme, meaning a clause that 
ensures that the programme 
must be reviewed by parlia- 
ment after a stated number of 


The Tory leader, youthful 
looking even for his 39 years, 
comes from Alberta. His election 
in 1076 was a triumph nf 
organisation for a dark horse. 
That talent has not been lust. 
By ail accounts Mr. Clark has 
mastered the Tory caucus, not 
an easy task. 

One of his proposals is to sell 
to private investors Petrocan, 
the Government-owned oil com- 
pany. Petrocan was intended to 
assure a Canadian presence in a 
U.S.-dominated industry, but Mr. 
Clark feels that Canadian owner- 
ship in this as in other sectors 
of Canadian industry can be 
ensured by other means. As he 
said in a speech in Toronto last 
month; “ We shall be proposing 
means to encourage many more 
citizens to take their money 
from their Canadian socks and 
put it into Canadian stocks.” 

In keeping with the mood of 

the country, Mr. Clark wants to 
carry further the reform of 
unemployment insurance that 
has already been undertaken to 
reduce abuses. Where possible, 
he says, money should go to 
create jobs and to train people 
for them. 

His seeming lack of appeal to 
the French Canadians, need not 
mar Mr. Clark's electoral 
chances, since the French, 
account for only about a 
quarter of the electorate and 
are concentrated in Quebec. The 
English majority, which has 
always been suspicious of Mr. 
Trudeau's attempts to foster 
bilingualism in government as 
a means to hold the country 
together, has been thoroughly 
disillusioned by the economic 
difficulties that have caused the 
Canadian ‘ dollar to decline 
steeply in the past two years. 
And as things stand, it is 
economics that will decide the 

It may end with the Tories 
sweeping English Canada, and 
Ihe Liberals a’ most sweeping 
Quebec. ' The implications for 
the unity of the country are 
obvious: Quebec separatists and 
those close to them will he able 
to argue that political patterns 
in Quebec and th** rest of 
Canada are already so different 
that it almost amounts to de 
facto separation. 

It is a view already sedulously 
propagated by some supporters 
of the parti Quebecois (PQ) 
Government of Mr. Rene 
Levesque in Quebec. The 
tactical intent is clear — to sug- 
gest that there is something in- 
evitable about the separation of 
Quebec in one form or another. 

The P.Q is proceeding with 
extreme skill. It raises no 
opportunity to stress that Mr. 
Levesque Is one of a line of 
Quebec Premiers who' tor morn 

than a generation have -striven 
to increase the political auto- 
nomy of their province. That 
takes, the edge off the novelty 
of the PQ Government that it 
wants to cut adrift from Canada 
in a form of souverainete- 
a. ssociation or sovereignty in 
association with the rest of the 

Sovereignty as defined by Mr. 
Levesque means that the 
Quebec Parliament shall have 
the exclusive right to legislate 
and to tax Quebeckers. Associa- 
tion means a common market, a 
common currency and monetary 
policy, and in political terms 
adherence to North American 
security systems such as NATO. 

In a speech during October, 
Mr. Levesque made clear that 
he did not want to have 
sovereignty without association. 
Will English Canada concede it? 
Mr. Trudeau and Mr. Clark arc 
agreed that the federal Govern- 
ment has no authority to nego- 
tiate Ihe separation of Quebec. 
In law they are right. In poli- 
tical terms a sweeping victory 
for the PQ in the referendum 
could create severe problems. 

But will it come? At the 
moment there is no majority 
support in Quebec tor separa- 
tion in any form — but there is 
support for change. Even Mr. 
Claude Ryan, elected leader of 
the Quebec Liberal Party this 
year on an impeccably federalist 
platform. supports change 
through amendment of the 
Canadian constitution. 

Mr. Ryan has gone a long 
way towards re - establishing 
morale in the Quebec Liberal 
Party and among the English 
speakers who constitute about 
one in five of the Quebec popu- 
lation. There is one clear 
symptom of that: house prices 
in Montreal, which plummeted 
t when the PQ came to power in 

November 1976, have begun to 
rise again. There is no paiiic 
exodus. though the long- 
established trend of English- 
controlled financial institutions 
moving to Toronto has not been 
reversed. Mr. Ryan’s success 
may also have calmed the 
apprehensions of the English- 
speaking provinces, which plays 
into the hands of the FQ 

The same is true of Mr. 
Levesque's readiness to co- 
operate in a series of confer- 
ences of the 10 provincial 
Premiers and Mr. Trudeau to 
discuss constitutional reform. It 
is generally agreed that there 
is something anomalous about 
'Canada, a country of undoubted 
sovereignty, having as its con- 
stitution a 19th century Act of 
the British Parliament. Mr. 
Trudeau has for long wished to 
have an indigenous Canadian 
constitution, to “ patriate ” it as 
Canadians say. But tu do so 
he must have unanimity be- 
tween Ottawa and all the pro- 
vinces un the new arrangement, 
and it is hard to see how he 
can get it. 

The constitutional debate 
would probably be entirely 
blocked were it not for Mr. 
Trudeau's willingness to discuss 
a re-a] location of powers 
between the federal and the 
provincial governments. Not 
only Quebec was interested; so 
was the west Alberta with its 
gas and oil. and Saskatchewan 
which is on the verge of a 
uranium boom, and others as 
well, hope to enhance their 
control over their natural 
resources by constitutional 

A separate article of this 
survey is devoted to the cyclical 
condition of the Canadian 
economy. The main fact is that 
the devaluation of the Canadian 
dollar by about 17 per cent in 

two years has created a spring- 
board for Canadian exports, 
which have been leaping up. But 
the investment climate remains 
dull, not least because of 
political uncertainties. Besides, 
nobody can tell for bow long the 
trade unions will accept the 
decline of real pre-tax incomes 
which has coincided wfth 
devaluation. Next year could 
be one of industrial strife. 


The rise of U.S. interest rates 
has caused severe problems in 
Canada where the cyclical posi- 
tion calls for low rates, but the 
balance of payments will not 
allow it. Canada has always 
been an importer of capital, 
and now that business invest- 
ment is fiat the federal Govern- 
ment has had to step in as a 
borrower to cover the yawning 
current account deficit. Some- 
thing like C$4.6bn in reserves 
has been lost in two years, 
largely because of a huge deficit 
on the travel account and for 
capital service. 

Foreign lenders do not seem 
to be unduly perturbed; Canada 
and for that matter Quebec, has 
been getting what it wanted. 
The lenders probably had got 
it right. The current account 
deficit has been moving in a 
range between 2 and 3 per cent 
of Gross National Product 
(GNP) In the past three years, 
which is not dramatically higher 
than in many a past period. The 
cyclical problems of the eco- 
nomy, therefore, are on a scale 
that should be manageable. 

The argument about indus- 
trial structure revolves around 
two main points. Can Canada 
afford to live with huge C$10bn 
deficits on its trade in finished 
manufactures, relying primarily 
upon energy and raw materials 

for a merchandise surplus? And 
has heavy foreign and especially . 
U.S. investment stunted its 
ability to compete in world 

Sectoral working groups con- 
sisting of officials, industrialists 
and trade unionists are looking 
at Canadian industries with the 
view to evolving an industrial 
strategy. The pattern that 
appears to be emerging is 
against free trade with the U.S. 
— something that had been pro- 
posed by a committee of the 
Canadian Senate — but in favour 
of some selective arrangements 
such as the agreement already 
existing for free trade in auto- 
motive goods across the U.S. 


The Economic Council of 
Canada, a semi-official body, has 
proposed a C-$4bn fund to be 
spent in 15 years to redeploy 
industry. As industrial efficiency 
increases, tariffs should be cut 
to give the essentially non- 
manufacturing provinces in the 
West and the extreme East 
cheaper goods. 

Last month Mr. Jean Chretien, 
the Finance Minister, added to 
the existing tax incentives for 
research and development in 
Canada. At the moment it 
accounts for less than 1 per 
cent of GNP — a share which the 
Conservatives would like to sec 
grow to 2.5 per cent. The 
Science Council, another semi- 
official body, has proposed 
using existing powers to screen 
foreign investment to promote 
the import of modem tech- 

Yet given persistently high 
unemployment Canada will no 
more be able to turn away 
foreign investors in the future 
than it has in the past, even 
if it does use traditional tech- 
nology'. The Tories in fact are 
disposed to look at the existing 
powers of the Foreign Invest- 
ment Review Agency to see 
whether its very existence has 
scared away potential investors. 

The odds therefore are that 
what structural changes there 
are will be gradual and small. 
Canada will have to go on 
making its compromises — 
between nationalism and foreign 
investment, between English 
and French. 

■ -Jf 4 






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THE TESTING time has come 
which must show whether the 
steep devaluation of the Cana- 
dian dollar by about 17 per cent 
during the past two years, has 
worked, or whether the un- 
doubted gains it has brought 
will be lost again. 

The impact of devaluation on 
the merchandise account of the 
balance of payments has been 
felt for some time. A surplus 
of about C$3.5bn or a bit more 
is in prospect for 1978. At the 
same time, consumer spending 
received a boost during the year 
from remissions of retail sales 

But neither the increased ex- 
ports nor increased consumer 
spending have been eno ugh to 
arouse corporate investment 
from the torpor that befell it 
three years ago. Not even 
steeply rising corporate profits 
achieved feat. Cash flow In the 
business sector rose by 16 per 
cent last year and by something 
of the order of IS per cent in 
197S. In the tMrd quarter the 
profits after tax of the larger 
corporations are estimated to 
have . been 1 almost one-third 
higher than in July-September 
of 1977. 


Much of the blame for the 
investment climate must attach 
to the many uncertainties over- 
i h angi ng Canada. The Quebec 
situation, while relatively quies- 
cent, has not been settled; 
an election is .in the offing: no- 
body can be sure how the trade 
unions will - react to the ending 
of wage and profit controls -this 
year: and devaluation itself, 
while beneficial to Importers, is 
bound to have an inflationary 

Statistics according to which 
manufacturers are running their 
plant at about 88 per cent of 
capacity do not on the face of 
it support a case for investing 
now. But the figures imply feat 
some plant must be almost flat- 
out; nor do they allow for the 
need to modernise which must 
exist in many cases. 

None the less most forecasts 
axe that business investment 
next year will grow by no more 
than 2 to 3 per cent On the 
strength of a survey of invest- 
ment intentions the Government 
arrived at 3 to 3.5 per cent fol- 
lowing on 2 per cent this year. 
Some intrepid economists will 
go as high at 5 per cent hut 
even that would be insufficient 
to make much of a dent in the 
unemployment rate of more than 
8 per certf. 

Recent increases of the dis- 
count and prime rates in the 
D.S. have not been helpful. 
Since Canada relies on capital 
imports to balance its external 

accounts, it generally has to 
keep domestic interest rates 
above the U.S: level. Canadian, 
rates duly went up top, with 
relatively little controversy. If 
the Americans were to tighten 
up further, Canada conld be 

' The conflict between the wish 
to stimulate the economy' and - 
The need to prevent capital out- . 
flows did not simplify the task 
of Mr. Jean Chretien, the Mini- 
ster of Finance, when he intro- 
duced his budget on November 
16. The fact that it was his 
third this year shows' how diffi- 
cult the Canadian Goyeriunent 
is An d ing it. to - deal with Its 
dilemma, ■ 

The tenor of -the budget was 
settled during a hectic period in 
the sumer and- autumn when, on 
the -initiative of Mr. ' Pierre 
Elliott Trudeau, the Prime 
Minis ter, the decision was made 
to cut spending plans heavily. 
Expected expenditure of 
C$54. &bn in 1879-80 was reduced 
to C$52.6bn in Mr. Chretien’s 
Budget. All going well, federal 
expenditure will grow by 9.9 
per cent in the current year and 
by 8.9 per cent in 1979-80, rates 
below the nominal growth of 

As a stimulatory measure and 
in order to slow down inflation 
Mr. Chretien cut the sales tax 
at wholesale level by an amount 
reducing revenue by C$lbn in a 
full year. Other tax cuts will 
raise that amount to C$1.4bn. 
They are mostly designed to 
encourage research and develop- 
ment and mining exploration. 

Economists reckon that the 
cuts will add between a half and 
three-quarters of a percentage 
point to next year’s real growth, 
bringing it up to something 
between 31 and 31 per cent. Mr. 
Chretien, ever the optimist, 
forecast 4 to 4i per cent, which 
seems high. ’ ' - v: 

The strategy' behind the 
Budget has been evolving for 
some time— to seek to transfer 
resources to the private sector. 
That is in keeping - with the 
increasingly conservative 

temper of the country, though 
not enough has -been done to 
satisfy the Progressive Con- 
servative opposition. 

Mr. Joe Clerk, fe* opposition 
leader, wants immediate tax 
cuts of CS2bn, end- is preach- 
ing economies in the civil ser- 
vice and Government-owned 
agencies. In addition to the 
tax cut he is proposing that, 
over a four-year period, interest 
on home mortgages of up to 
C$50,000 should be made deduc- 
tible from taxable income. In 
the first year that would reduce 
revenue by C$400m, rising to 
C$52bn in the fourth year. 

Besides these actual and pro- 
posed cuts, there is a cut built 

into life system. Tax allowances 
are ; indexed, . which will IdP. 
C^bn/ off income tax: bills in 
1979-8Q. ; 

Brad growth next year of-3.5 
per :-cent or better, would be 
quite" -a respectable result,, but^ 
for the fact that it win 
down v^emplojrihehtiirimrrits- 
presedt level of 8J to’.? percent 
during the current phas* ’« fast 
growth, of ' the population of 
working age. Against the ^*igh. 
unemployment ratio me 
Government can point nr the 
fact that employment has jwen 
growing steadily in recent years. 
Since. 1975 the number ;o£; per- 
sons -.with jobs' has .risen from 
9.5m to 10.3m. Sv: 

The existexwmi'qf-^ ^niisrie:^flian 
800,000 uriemplayeil %s .helped 
to iteep wages. ;dowh-’ar _a time 
when the countxy ls c^ming' oui 
of wage .and ptoflt.' controls. 
Thrafu^iQpIt - i9m.:wieeg i h0ye 
been advancing by. Jess than the 
inflation .rate of about 0 per 
cent* Real wages before tax .have 
been declining, even though they 
appear "to have been more or 
less-Stahle after: tax. There have, 
beeft- .• strikes _ .a-plenty but 
some: very moderate settle- 
ments as well, without ; confron- 
tation The critical poiut : here : e in 1979. Events then 
will v determine whether Can- 
adian industry ■ will Ipse the 
benefit- of devaluation— a bene- 
fit 1 which, by ^nd - large, has 
countered out the deleterious: 
effect of a rapid increase of 
labour costs in the eariy' 1970s. 


.. Should that happen; '.lire 
hoped for recovery of business 
investment will .be further 
. delayed, unemployment will .re- 
main rife, and - the: Canadian 
dollar will remain vulnerable. 
The Canadian Imperial Bank .of 
Commerce has- done 1 an a na l ys is 
.of the relative purcSiasiing 
/power of the U.S. and Canadian 
currencies, and. has ^concluded 
that : on,: that basis - the , rate 
ought - tn.'be raboufc US', cents 
90 r 91 to onq Canadian doSar. 
TJhat is not* of, course the 
ihanner in which\ foreign -«x- 
• change dealers • .do "their sums, 
especially where - there are, suit* 
large capital movements ■ af 
between Canada, and fee U#S. 

The Bank-economists aay that 
they expect fee actual rate . next 
year to be. in fee 84-86 -cents 
range. There is in fact • same 
agreement that the Canadian 
dollar will strengthen a hit vfc- 
a-vis the tJ.S. currency. 'That 
leaves open what’ will happen- 
against other currencies, but 
then it is the U.S.. rale feat 
counts in Canada; some two^ 
thirds of Canadian . external 
trade is done with- fee U.S. 

The consensus among econo- 

mists is that ‘fee Canadian mer- 
chandise surplus will decline . 
somewhat, id 1979 to ‘ somethings 
in the . region l of - C$JL5bn-aiw; 
that fee current account. wfllgb 
from V deficit, of around C$5bU- 
this • .year td . C$9*5bm /Diose . . 
amounts, -jadgiTig. by 
. perience, would he sust ainabl e. . 
But it: would be better. if the, 
capital • Smpotte- . required* to 
eover feose sums, werermote 
productive. / v : ' y : <. 

"What has been happe ning' of 
late, is that the federal GbvOnf- 
ment has had to- step in^antt 
borrow on foreigp' markets to. 
fill a gap left by redabetf- pro- 
vincial : borrowfes; add. by Te- 
duced - imports - by' private-- 
bdrrowers.' Between the b^gjfr. 
hing of 1977 up to: fee . 

November - 1978^ Ottawa made- 
bond issuBs In.; New .Yorff nnff. 
Germany ~ totalling the oqufra* 
Jeritof U.S.£2-2bn. In addition 
If drewTT.Si2.4bn irotoifiies -of- : 
r credit arranged ‘wife two-bank- „ 
ing .-<ahsbitiumft, ; in’ 
U.S^4.Bbn. The offieially-h«<f 

■ reserves were - held, steady, i po ; 
fee U.S.$4.6bn borrowed 
. be the ©qulvalentTou^fiy .of .fee 
actual loss nf reserves. 

' But that "figure does hot-fen. 
fee whole " story. . The .loss -to 
the Canadian system, as a whoje 
seems, to have .been 1 much lesa. 
You can get an idea by lookfeg" 
af flares - r for. ...lirtswapp^d 
deposits beW by Canadian i^r- 
. dents in fee " form , of 
exchange : .-deposited _• ---WStb 

- Canadian, banks. Tt^has 'riien 
by U.S^2.5bn in a year.. These 

- dollars-, 'represent :. : positiMis. 
taken' by Canadians .against .the 
Canadian dollar ' (though not by 
fee banks which,' by and" large, 
do not take positions ifc the 
foreign exchange market ) . 

Once-.-- Confidence -in'' --.tlie' 
Canadian . dollar A is restored, 
those - jEiihds. -might *fiow bade 
"very'quiddy. .The result eould 
be a,’ currency .‘teniporardy as 
overvalued in -trading- terms as 
it •• ' now - r * is. . undervalued. 
.CTanadiah . mandfacturera would 
not Tike, that There is much of 
a . . structural nature, that /is 
working against feeing prhl- 
cipaHy a‘ small market which 
belongs .. .to ipne .of fee ; big 
p.eoritniiife' 1 blacks.. . T- • -. 

eTOnbiiuC; blacks.. : . r* , Y. / 

. :‘<ln fee jwwitive ridd there Is 
fee* effect of devalntion, fee 
h<q?e! ..of _imntinued. moderation 
on thel wSgey iTon^ and the 
pos^SnBty feat fee "expected 
sIl^Bf 3: upturn , of . business 
investment will -gather Impetus. 
Provided^fee':- "world:-enyiron- 
meht • .re^rns^iright^-meaning 
: that fee -T«t-n voids, recessnbn-- 
Canada’s stim^& ih ther field 
of natural.resdutces aiid, energy 
could provide 4 fee basis fro. a 
thorough recovery. .- . .. 

. / ; W. i. Lu etkeps 


Mills enjoy peak year 

industry Is reaching fee peak of 
Its current two-year upswing. 
Record high North American 
interest rates will slow down 
economic growth and housing 
construction next year. This 
implies more sober times for fee 
industry, even though world 
markets outside North America 
may well improve. 

Paper and forest products 
companies have been going 
through a heady year. Their 
stocks have outperformed most 
other groups in the market. 
Canada sells about three- 
quarters of its newsprint and 
building lumber in fee U.S., and 
it Is fee U.S. market, because of 
its huge size, which indirectly 
controls the cycle in fee 
Canadian forest products 

U.S. demand for newsprint 
and lumber soared in 1977 and 
1978, - just at a time when fee 
Canadian dollar was being 
floated down to the largest dis- 
count since the 30s against 
American currency. The impact 
on the Canadian industry has 
been dramatic, both in activity 
and profits. Nearly all the mills 
have been working full out, 
especially those making news- 
print — where total Canadian 
capacity is around 10m tonnes. 

Canadian producers have been 
getting an average of about 16 
per cent exchange gain this 
year, on products sold in the 
U.S. Gains have also been made 
from the sharp appreciation of 
some European currencies and 
fee yen. 

In the autumn lumber prices 
fell back between 10 and 20 per 
cent as fee North American 
housing markets faltered, but 

(000’s short tonnes) : 

Can. shipments 
Can. output 
Can. capacity 
Output: capacity % 

U.S. output: capacity % 
U.S. consumer invent, 
(e) estimate. 

■ ■ ■ .— . — controls. Contracts covering 

5HIPMENTS - . two years- from May 1, .1978^ 

tnnrw^v ■ have ben signed with- little. 

1 iw?s. 1077 - law disruption' in fee East, and total 

19,5 . 1*77 about 12 per cent . 

8,712 • 9,005 9,895 This is eonriderably lower 

8 915 8,988 9",698 t** 11 t*e average increase signed 

9 921 r 9,902 9^)50 this year alone in- fee U.S.: of 

89.9 - 90.8 97.5 10 to .11 per cent and goes 

921' 94.4 93.4 - some, way to reversing fee tread 

1,333 14 SO '1*200 of recent years. By the start of 

1976, it vra estimated that wage 
• ~ ' ' costs in fee Canadian industry 

■ . had reached nearly 20 per cent 

. . , , s ' above those in fee U.S., ass liih- 

fon mainly U^_ sales) was ^ am two- dollars. were around 

ifwt ivf- ■*-■ SI (HI . d "i 

newsprint and pulp prices are fon mainly U-S._ sales) was yg g ‘ tfa e'twQ. d olla c s were around 
firm. Newsprint producers have $16.4m, 1 or- ': $1.09 ..a share, par^ r .. 

given notice of increases of $20 against 45 cents a year :eariier.' v^age and • price -controls 
to $25 a ton (U.S.) early in the Aik divirions have been work- , feuiiy come off at the end of 
new year. They argue their feg a t full capacity and demand iS78. ; The unions in the East 
costs are still rising fast and was even strong for, market and 1 the West have been closely 
their .exchange gains could pu ip, wife: finning prices. The watching the profit experience 
evaporate should Canada’s troublesome world pulp Inven- of ^ Companies.' In fee West, 
dollar policy swing into another tory at fee start of fee year has ^ International Woodworkers 
phase. dropped to._Lfea tons. Strong has stated quite cleariy thaf 

The federal budget in demand , and better , prices are members regard exchange -gates 
November improved the invest- expected .for market palp well ^ a ' “major - windfall" for feo 
ment tax credit and extended into 1979. While North Ameri- companies. When they jmgoti- 
fast writeoffs for anti-pollution can demand for lumber is likely, spring, free of wage 

equipment These measures to ease, overseas sales, especi- . controls, they will he seeking 
should help the Canadian ally in Japan, are looking up.. increases in line With American 
industry’s competitive position b. C. Fotest, in commob with settlement plus improvements 
over the long term. most ofear, has been J in fringe benefits^ ^ 

The e^enence Sn fee firet running M newsprint, machines; *. r- The'indUstry has been soKect 
nine months this yemrof British at around J00 per cent capacity • .to some vlofeot -swina in- its 
Columbia Forest Products, a i n the where forest- pitK fortunes over fee pm^)'Sars. 
major Westeni producer of ducts firms are heavier in ne>^S- "' Generaily it has -had W 
newsprint;- pulp and tamber, p rint , eyCQ .if : - there is a. margfes, 
sums up the Industiy’s perform- newsprint'..slpwd<wn in- ; 1979, . swings i^fdemW 
ance in gener^. B. C. Forest, Mtne offs6 t & possible from stock market priS-ln'Telatfbh 
one ®^ ms ’ finwr packaging and fine paper fe assets and^uity : ItoSt 

is ^^lcdbyNorandaMines marfcets.j^ws^ has 

and Mead Corporation of the are now stout normal.;- exbrably, parti^ar^^c^fee 

mmoanv earned fCan ) 111 1975 ' double-digit ' pay energy trios. -- The T rapit^ cori 

nTfim C S?? 2 M a share in the daim a W EasteVn Canada Of new mills,; expan^oiisor new 
"apainst $23 lm. or pu,p and paper unions ware one- newsprint mach£nes r Sas;.almort 

fedail Cova*- -.tfoabled smce'is TtV 

should help the Canadian 
industry’s competitive position 
over fee long term. 

Sal#** a were^' S503tn against raen ^ reverted- its stan^ and A • new mediuzh-sited.^ptilp 
3330m. The net contribution broufi ^ h '^ age ; ^ ; ia , 

to earnings of exchange gains r " -CbNrtMtiep 'our hikyr . V . 

« . ;• • -.e 

• *.•% 


_■ * — — "-p j • 

*. r - -7 : '-..I,; 
y •: J V 
-. V' Y"‘ 

. , 1 ^ ' -f 

.U ■ " • -u- 

W-i': . r 


l -■ .‘v> 



T r\i 



Financial Times Tuesday December 19 197S 



Delays in important 


Trudeau’s decision. -to postpone 
a federal election until 
year was one of the/. most 
analysed political-, events of 
2978. Amid the public .uproar 
one implication received little 
comment; ’hut' it Was a. matter 
of great importance to the 
Canadian financier . industry. 
The continued life of- the 
current Parliament meant that 
new banking legislation* in 
process since 1976; would have 
a lighting chance of getting 
through in time to become- 
effective by April 1 next, the 
mnst -recently set deadline. 

The two delays that have 
already occurred in. introducing 
the revised' Bank. Act have 
caused considerable uncertainty 
in the Canadian financial world. 
At the same time, some 
financial . executives who be- 
lieve that. - Parliament will 
finally get around to enacting 
the new legislation have set in 
motion a number of complex 
deals aimed at preparing their 
organisations for the brave pew 
world of banking envisaged by 
the Act's designers. 

An unusual chorus of 
approval from the financial 
industry greeted the new legis- 
lation when it was introduced 
in May of this £ear, although 
one concession to popular 
suspicions about boardroom 
relationships — a severe restric- 
tion on the kind of outside 
directorships, a banker could 
hold — shook them a little: 

They were partly mollified, 
however, by significant reduc- 
tions proposed in the amount 
they would have to deposit as 
statutory reserves with the Bank 
of Canada — deposits which earn 
no interest y 

Executives of the increasing 
number of “ near-bank ** finan- 
cial institutions were pleased 
to learn they would escape the 
imposition of federal reserve 
requirements— something which 
bed been proposed' in the 
Government's original policy 
paper but did not survive into 
the Bill. " 

Tiie city hall of Toronto, Canada's financial capital. 


■-.v: .‘ re- 

investment analysts and of 
course the bankers themselves 
themselves were pleased about 
the prospect of improved profits 
for the banks, : principally from 
profitable use of the additional 
money freed up by thenew rules 
on reserves. 

Even foreign bankers, while 
not exactly enthusiastic about 
legislation that would bring 
them under Canadian Govern- 
ment regulation for the first 
time and limit their growth, 
were comforted by the decision 
that an important restriction on 
their size would be a matter of 
Government policy and not 
written into the Act. Policies 
can be changed more easily than 

More recently, as the fine 
print of the legislation is read 
closely, more complaints have 
been heard from a number of 

The current forum for 
criticisms of the proposals is 
the House of Commons-, com- 
mittee on finance,.' trade and 
economic affairs: In an unusual 
move the House agreed to refer 
the legislation to the committee 
for detailed examination before 
the Bill had received its second 
reading, signifying approval in 
principle by the whole House. 
Government spokesmen argued 
that this could cut the revision 
process by up to six months. 

The' Commons did not have 
10 to 12 days to. devote to the 
second reading stage before the 
summer recess. By going 

straight to committee a 
summer-long halt hr the process 
was avoided, interested MPs got 
a chance to study the ramifica- 
tions of the legislation and out- 
side organisations had another 
opportunity to prepare briefs 
for .submission at: committee 
hearings during .the autumn. 

All this may .of- course only- 
serve to confuse the legislators 
rather than enlighten them. 

To take an example: they 
were confronted recently by a 
brief from three of the 
country's largest - Trust com- 
panies that argued that the new 
legislation -would seriously 
weaken their competitive posi- 
tion against the banks'. 

• Then a week .‘.later they 
received a brief from the 
influential Canadian Bankers’ 
Association <CBA> that- argued 
the. new legislation We^ld be 
unfair to bankers. ; 

The trust companies’- brief 
recalled that the. Government s 
original policy paper stated that 
a’principal abjective- was; to pro- 
vide for “ a banking and finan- 
cial system as competitive as 
possible.” Yet' the Act will 
allow banks .Easier access to 
mortgage funding, tax-deferred 
savings plans and long-term 
deposits, the very heart of the 
' trust companies’ business. 

On theSace of it such changes 
might he construed as making 
the sjtetcm more competitive, 
which is the banks’ view of the 
situation. But -because of the 
remarkable “ difference in size, 
the banks' argument is rather 
tike saying that the elephant, 
‘and the mouse should be free to 
compete with each other with- 
out any restrictions. 

Mr. Kenneth White, chairman 
of the country’s largest trust 
company, the Royal, said before 
the Commons committee that 
even the present competitive 
position of the trust company 
industry is inequitable in that 
the combined assets of - the 
seven largest trust companies 
are not equal to the assets of 
even the fifth largest bank by 

The fact that tbe banks, so ; 
completely dominate the ; Cana- 
dian financial scene has be- 
devilled many a scheme to 
rationalise the regulatory struc- 
ture of the financial industry.- • 
With their C$170bn of assets 
they account for 67 per ce n t: of : 
tbe whole industry. 

When the new Bill saw the 
light of day earlier this year the 
bankers breathed a sigh of re- 
lief that it did not contain any. 
direct restriction on the size , 
and. future growth of the banks. 

Many bankers had been con- 
cerned that the Government 
might propose politically attrac- 
tive changes of this kind be- 
cause of the common public 
belief that the banks are big. 
fat and indolent. 

The bankers naturally think 
differently. In their view the 
banks are big because they are 
efficient and very good at de- 
livering services people want. 
Moreover, the banking industry 
is both Canadian-controlled 
and also one of the few in 
Canada that is big enough to 
compete with its international 
rivals head on. In fact, the 
Canadian banks have done well 
on their foreign business and 
have a justified international 


Government policymakers 
appeared to accept the bankers’ 
view of things, both in their 
original White Paper and in the 
final draft of the Bill. They 
would allow the banks to enter 
almost every financial market in 
Canada. At the same time they 
would restrict the banks’ most 
dangerous competitors, the sub- 
sidiaries of foreign banking 
organisations, to a maximum of 
15 per cent of total commercial 
lending by banks in Canada. 
An individual limit of C$500m 
on the assets of any one foreign 
banking o realisation would be 
.applied as a matter of Govern- 
ment policy but would not 
actually be written into the 
. legislation itself. 

Between 40 and 50 foreign 
banks are already heavily in- 
volved in making commercial 
loans in Canada and raising 
funds on the Canadian money 
market — though they must not 
call themselves banks and oper- 
ate under provincial, not federal 
law. Most of these appear likely 
to set up foreign banking sub- 
sidiaries under the new legisla- 
tion. That would bring them 
under federal regulation for the 
first time, a prime objective of 
the Canadian banks. 

The recent CRA brief took all 
this for granted but quarrelled 
with a number of other aspects. 
Its principal complaint was a 
proposed new 3 per cent reserve 
requirement on foreign currency 
deposits, which would not, how- 
ever, apply to foreign banks 
operating in Canada. (Canadian 
banks have not so far had to 
hold statutory reserves in re- 
spect of Jbeir growing foreign 
currency deposits.) 

- The bankers' group was also 

not enamoured of the prospect 
of not being able to dominate 
the proposed new clearing body, 
the Canadian Payments Associa- 
tion. even though they account 
for 90 per cent of the volume 
nr payment items, handled by 
the present clearing system — 
which is operated by themselves 
—and 98 per cent of the value. 
They are worried that the banks 
may have less than half the 
votes on the board or directors 
of the association, and that this 
could lead to adoption of too 
lenient liquidity requirements 
on members under pressure 
from the other financial institu- 
tions. such as, for instance, 
credit unions. 

Overall, however, the new 
legislative -regime would seem 
to make bank status a most de- 
sirable one. Indeed the presi- 
dent of the Trust Companies 
Association of Canada recently 
said the Government has made 
other financial institutions an 
offer they may find hard to 

The new legislation contains 
provisions that would make it 
easier for trust companies and 
other institutions to transform 
themselves into banks. One re- 
sult would be to strengthen 
federal control over the finan- 
cial system. Banking Is indis- 
putably a federal - responsibility 
under the British North America 
Act But many other types of 
financial institution are regu- 
lated under provincial govern- 
ment powers. 

An immensely complex 
merger scheme now under way 
will provide an interesting test 
of whether sucb things can be 
done in future. One of the big 
three Canadian trust' companies. 
Canada Permanent, recently 
announced it was holding ex- 
ploratory talks with Canada’s 
biggest sales finance company. 
1AC, about an eventual amalga- 
mation of the two companies. 

The interesting thing about 
this manoeuvre is that LAC has 
already gone through several 
years of arduous preparation 
for turning itself into a bank. 
Its banking subsidiary is 
scheduled to begin operations 
next June and eventually IAC 
and its subsidiary will be united 
into one organisation. 

Canada Permanent would not 
come into the picture until after 
IACTs bank was in action and 
after the new banking legisla- 
tion has become law. But the 
move is a fascinating indication 
of the way things are evolving 
in Canada’s financial system. 

Hugh Anderson 


costs well over S 200 m— the new 
Donobue-St. Felicien pulp, mill 
north of Quebec City, now : in 
the start-up phase, will have 
cost over $300m when it is all 
in place. A new_ newsprint 
machine has a price tag of 
around SlOOm. . 

The high cost of plant and 
relatively low stock market 
prices for many of the pro- 
ducers' sbares*has encouraged 
takeover attempts and rumours 
of takeovers. 

Tbe most dramatic move came 
during the summer when a 
Toronto-based investment group 
appeared to be trying to get 
control of Abitibi . Paper 
through acquisitions of large 
blocks of stock in the market 
Abitibi, which then owned just 
over 50 per cent of Price Com- 
pany, of Quebec City, as a group 
had become the world’s largest 
newsprint producer. Its stock 
was widely held. 


Tbe move was foiled, but it 
led to Abitibi buying the rest of 
tbe Price Company shares, and 

will bring about greater integra- 
tion of the two companies’ 
operations. ' 'The group : has 
major interests in the Southern 

Abitibi Is taking over the 
shutdown Sfephenville liner- 
board mill, from the Newfound- 
land Government for about 
$43m and will convert it to 
newsprint production mainly 
through adapting the machinery 

and giving it greater speed. •' 

Despite the strength of the 
two-year upswing, a few com- 
panies have failed to pull out of 
the doldrums; The most ' con- 
spicuous has been Reed Paper, 
owned by Reed International of 
the UK. The company had been 
over-ambitious in. its capital 
spending and diversification pro- 
gramme, and is only now get- 
ting back into the black. 

Reed Paper has sold major 
pulp, assets in. Western Canada 
and other interests and the 
proceeds have been used to 
reduce debt The company is 
concentrating on its traditional 
forest products base, though 
there remain major environ- 

mental problems at Its Dryden 
- mill in. Ontario. It old news- 
print mill at Quebec City has 
been very profitable. 

During early autumn, it was 
confirmed that Reed Inter- 
national was having “ pre- 
liminary negotiations " with 
several Canadian companies, 
including MacMillan Bloedel, 
towards selling its 87 per cent 
voting interest in Reed Paper. 
There has not been any further 
word on these negotiations. 

The industry is still cautious 
aibouf putting in new major 
capacity in all forest products, 
because of tbe uncertainty over 
exchange' profits, the problems 
with the American economy, 
less-than-adequate longer-term 
return on investment, and the 
high cost of meeting environ- 
mental standards. 

In the East, machine speed- 
ups and other improvements 
continue. The Donobue-St. 
Felician pulp mill is coming 
into operation at a time of 
better prices. Major capital 
investment projects have been 
examined, and there has been 
talk in the industry of the 

\ . 

possibility of two new newsprint 
machines. Coated paper capa- 
city is being increased by some 
companies supplying the U.S. 
market mainly. 

Iq the West several major 
companies have embarked on 
fairly large programmes to 
adapt their operations to 
smaller-type trees, but some are 
programmes which were delayed 
by the last industry recession. 
It seems likely that at least one 
newsprint machine will be in- 
stalled in the- next two years. . 

Both Ontario and Quebec 
have announced tentative pro- 
grammes to help the industry 
expand capacity judiciously and 
meet the cost of cleaning up 
pollution, but it remains to be 
seen how effective these will 

Even if the Canadian dollar 
firms next year and the Carter 
economic measures check U.S. 
growth, tbe industry sees some 
improvement in overseas mar- 
kets and a favourable outlook 
generally for the first half. 
Beyond this, the uncertainties 
are manifold. 

R. G. Gibbens 

• • •» > *■ 

Open the door of Canadian Imperial Bank 
of Commerce in London and you have 
over1700 branches open to you in Canada. 
What's more, as well as having the largest 
network of branches in Canada, we're also 
big internationally, with offices in the 
United States, Paris, Frankfurt Bahrain, 
Hong Kong, Singapore and in many other 
world financial centres. 

Naturally, here in London we are linked to 

our branches throughoutthe world, 
whenever you need our specialised and 
localised experience. Experience such as 
loans, investments, foreign exchange, 
term and demand deposits, trade financing 
and the movement of funds. 

For further information on our wide range 
of services, please contact European 
Operations Office, 42 Moorgate, 

London EC2R6BP, England. 



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Windsor Station, Montreal, RQ. 

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Tel: 01-638 5555 Telex: 8814404 


Director for Europe & Middle East 
General Manager UK & Ireland. 

8 Waterloo Place, London SW1 Y 4AQ 
Tel: 01-833 6645 

CP Hotels IS 

Senior Vice-President, Europe & 
Middle East Sales Manager UK & 

103/105 Jerniyn Street, London 

Tel: 01-839 5883 Telex: 91 822S 
Sales: Tel: 01-9308852/3 
Telex: 8951 9Z2 

CP Hamburq Plaza Hotel 

2000 Hamburg 36. Mareelller 
Slrassa 2 

Tel: (040)35 1035 Telex: 21 4400 

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Hamburger Ailse 2-10 

Tel: (0511) 770721 Telex: 0416745 

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Tel: 225-445 Telex: 60632374 


General ManagecCon tamer Services, 
50 Finsbury Square. London 

Tel: 01-638 5555 Telex: 8814853 

■ ■X 

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Birmingham B5 5HE 

Tat 021643 6128/8413 Telex: 338920 

Western BRS Depot Spring Street 
Bedmlnstec Bristol BS3 4BT 
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Tel: 051 2365960 Telex: 6Z7593 

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Southampton SOI BAS 
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Tel; 01-839 3341 Telex: 9188TJ ^ • 

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Financial Times . Tuesday Cecem^r 19 JW? 




CANADA'S primary aluminum 
industry, based in Quebec ami 
British Columbia totth annual 
ingot capacity of well over lm 
tonnes, has bad a very active 
year. Tbe surplus inventory 
problems cif 1975-76 arc over, 
earnings have rebounded, and 
ihe industry helieves it is in the 
most favourable cost position 
since the 1960s. 

At the world level, demand 
this year will have probably 
shown a gain of 5-6 per cent, 
but the real strength has come 
in the U.S. market Demand for 
aluminum products of all kinds 
in the first nine months was 
»#n around 15 per cent in the 

Aluminum producers in the 
dollar area, with the decline m 
the external value nf the U.S. 
currency, have a distinct advan- 
tage over producers in Europe 
and Japan, where smelting costs 
have soared and environmental 
concerns have brought some 
severe cutbacks in output. 

The North American base 
ingot price at the end nf the 
summer reached 55 cent* a 
pound, up in two slops from 
51 cents early :n 1977. Second- 
ary metal prices have risen in 
line. The market strength has 
come from active car. truck and 
aircraft industries, a high level 
of housing starts, nud heavy- 
demand for consumer products 
nf many kinds. Some sheet 
products have boon in short 
simply in the U.S. this autumn. 

However. European and 
Japanese base inent prices have 
been around 63-65 cents (U.S.) 
a pound equivalent. and 
Canadian domestic markets 
have been relatively slavish. 
But because of the pric*' differ- 
ential. v**ry little metal has 
moved from Europe or Japan 

t continuing surplus areas) tn 
the U.S. 

The Canadian stncltinij 
industry is based in Quebec and 
British Columbia because hydro 
power is available in large 
quantities at stable rated. Fabri- 
cating plants are spread across 
the country in the major popu- 
lation centres. The smelters sell 
a *jood majority of their ingot 
to" l lu? U.S. and other foreign 
markets, while the fabricating 
plants concentrate on the needs 
nr the domestic market 

The floating-down of the 
Canadian dollar In 197? and 
1P7S had an immediate effect on 
l he Canadian primary Industry's 
competitive costs. Just as U.S. 
demand began to climb, the 
Canadian dollar moved down 
against the U.S. dollar, compen- 
sating for wage costs which had 
earlier mnded to get out nf l> ,lp 
in Canada. 


In this environment. Canadian 
primary producers say they are 
generally satisfied with the 
present level of 55 cents (U.S.) 
for ingot though they see un- 
certainties ahead if more 
capacity is required to meet 
growing demand in the near- 
term. Plant replacement costs 
have doubled in the past four 
nr five years, and depreciation 
rates based on historic cost are 
unreasonably low. argues the 
industry. The higher profits now 
helng shown are really illusory 
her a use oF continuing high 

Lf world demand grows at an 
average annual 4 per ceht. theo- 
retically the market would be 
in balance by J9S0. he call so little 
new capacity is coming on 
stream. But further price 

increases aft? necessary if 
smelling expansions are to so 
ahead even where favourable 
energy costs arc available. 

Of total Western installed 
.vmeltina capacity, about 53 per 
cent Is based on hydro power. 25 
per cent on coaUfired electric 
power, 19 per cent on nil and 
gas. and 3 per cent on nnelear- 
generated energy. Japanese 
smelters have suffered the nmst 
from the leap in oil prices since 
1973 because they are 8D per 
cent reliant on oil. 

The cheap energy ateas of the 
world could host sortie new 
aluminium smelters in the 
future but progress may well be 
held bock because oE lack of 
infrastructure in those coun- 
tries. Thus the Canadian indus- 
try argues with some conviction 
that the remaining developed 
areas where ample hydro 
resources remain will play a 
major role tn the increases of 
capacity required to meet grow- 
ing world demand. 

Canada is the world's third 
largest nroducer of aluminium 
after Uip U.S. and Japan. The 
Canadian primary industry con- 
sists of Alcan Aluminium, bawd 
In Montreal, with nearly Ira tons 
rapacity in Quebec and British 
Columbia, main rolling milts in 
Ontario and fabricating plants 
across the country; and Can- 
adian Reynolds Metals, with 
175.000 tons capacity and main 
rolling mills also in Quehec. and 
fabricating plants in Ihe main 
population centres. Kaiser has 
no smelting capacity In Canada 
but operates at the fabricating 

The Canadian smelters are 
based on hydro power— captive 
entirely in Ihe case of Alcan and 
representing an investment of 
82}bn in energy alone. The 

whole aluminium industry’, 
including independent fabrica- 
tors. employs about 50,000 
people directly, and Is the main- 
stay of several important towns 
and cities. 

Expansion of Canadian rolling 
mills and fabricating plants is 
mainly tied to development of 
the Canadian market, though 
the possibility of General 
Motors building a castings plant 
in Eastern Canada remains 
active. This would be of North 
American scale. TtaeS Federal 
Government is committed to a 
grant of about S5Sm towards 
the total cost (reported at 
about SoOOmi if the castings 
plant is located in Quebec. 
Federal grants are available for 
blow-growth higb-unemploj-ment 
areas of the country. 

The Quebec Government bas 
also promised Us own subsidy, 
but General Motors has insisted 
it has not yet decided finally 
whether to gn ahead with a 
plant at all. It is believed GM 
would prefer tn locate such a 
plant near Alcan's Beauharnois 
sin el ter west of Montreal, in 
which case it would have access 
to alternate supplies of metal 
from Alcoa and Reynolds just 
south of the border, but in the 
same geographical area,- if 


But some argue that it should 
bo located near the big Arvida 
smelter of Alcan. 150 miles 
north of Quebec City. The final 
decision ir.ay yet turn on 
whether GM and the other large 
auto companies are ready to 
back aluminium-alloy engine 
blocks for smaller cars in the 

At the smelting level. Alcan's 
$U00m Grande Bale smelter 
south of Arvida is going ahead, 

and the steelwork for the first 
63.000 tons potline has been 
erected. Tills first phlute will 
ineiude infrastructure for 
further potlines to be added 
later in the 10-year modernisa- 
tion and rebuilding programme 
fur the whole Arvida smelting, 
fabricating and chemicals com- 

Engineering is being done on 
tho second BS.QOO tons potline, 
though a decision has not yot 
been taken, Alcan has ample 
power available at Arvida for 
expansion of Its existing 465.000 
tons rapacity plants. It does 
not now use all the hydro 
power it owns in the area, sell- 
ing some to municipalities. 
However, under agreements 
with Hydro-Qucbec, the provin- 
cial power utility. Alcan will 
“draw back" power being sold 
outside and vise it for smelting 
pti eposes once Hydro-Quebec 
brings in the 5 1 film James Bay 
hydro project. 


Crustbreaking in Alton's Aftftda works. ■■■ 


Because of the strength Of 
world markets. Alcan is also 
closely looking at expansion oE 
the KItimat smelter and hydro 
power . plant in Northern 
British Columbia, where it has 
almost 300.000 tons ingot capa- 
city. This will require building 
a new 1 While tunnel through 
a mountain range and an in- 
crease In. powerhouse capacity 
and transmission facilities. The 
increment in Ingot capacity 
might be 100,000 tons. 

energy crisis of 1873*74 and 
what bas happened since to the 
cost of mm*hydro power. In 
Quebec it has agreed to higher 
water taxation, but this is 
geared in .future years to 
Hydro*Quebec‘s base industrial 

The company has signed new 
agreements on bauxite mining 
with the Jamaican Government, 
and has reorganised its world- 
wide raw materials, shipping, 
smelting, fabricating and mar- 
keting activities on an area 
basis. It is offering engineering 
and marketing sen-ices in many 
other countries and recently 
completed a smelter feasibility 
study for Iran. It has sold 60,000 

V Creationdenombreux f^&ngj oWe . P 

1 emplqls ; specia|ses^^^^^^^g j | 

/? f Cnjparv; 



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; NorthernpipeUnemaybejust tha wing 
bn the cake as industry stages U 


- -hart nianu 
- • of 197 

A R Ame s knows what it means to you. 

For over three-quarters ot a century, . 
A.E. Ames has employed ks knowledge to advise, 
guide and benefit institutional investors, stock- 
brokers, bankers, bond and money market 

dealers around the world. 

We bring international finance to Canada 
■and £ knowledge ot the opportunities and pitlalls 
of a growing and resource-rich Canada to 
the world. 

Our reports, analyses and comments are 
recognized amongst the world business 
community as authoritative and perceptive. 

Throughout the history ot A.E. Ames, we 
have acted as key advisers to governments and 
to many Canadian corporate financial depart- 
ments, to Royal Commissions, regulatory bodies 

and other Canadian agencies. We have an 
accumulated knowledge not otherwise readily 
available. , . 

A.E. Ames is a full-service investment banking 
organization with world-scale capabilities in all 
areas -in internal resources, in range and diversity 
of financing activities and in knowledge and 

A network ot nineteen offices stretches 
across Canada and is joined to international _ 
affiliates and offices in New York, London, Pans, 
Lausanne and Tokyo. Find out 
whats happening in Canada 
today.from the nearest 
A.E. Ames office. We'll know 
what it means to you. 

Founded 1889 


Ames House, 6 Dnkc of York Street : Sc. June* Sqwre, London ^^Xoo'Tek^ 42 ^ ^ " , ’ T=fe *' 5W “*' ,,fc 

tons Of ingot to China this WSti 
and is closely- watching tnat 
market for Hie future. 

The Reynolds smelter at Bale 
Come&u on ttte St L&wmule 
takes its power Frew .Hydro- 
Quebec but is regarded suMn a 
strong position from the cost 
point of view* The possibility 
oE Reynolds adding new pdtllnes 
to 'The present 176,000 _ .tons 
yearly plant is active. Most of 
the'- Bale Comeau ingot moves 
to ’the U.S. Reynolds fabricat- 
ing-- system. 

in Quebec and ‘ British 
Columbia, the tone In labour 
relations is set ■ by Alcan 
because of tbe scale of its 
operations ai both provinces. 

Alcan’« ; labour contracts* the 
Quebec ambltere (four* With 
-capacity of nearly. tog.OOO tons) 
-rim -to the end of -next May.urid 
Thei KItimat contract.: runs. to.. 
October i980V-£>iffi.calltes cannot 
be ruled out in Quebec next 
year,.-., -v" : .'V- 

Generally the. industry; is^efr 
porting another good 1 year la 
1979, though toir. growth in 
North American jSetwand may 
slow,- especially if' President 
Carter's economic rineasures . 
bite into U.S. ^eovth::Tt'ma 
overall world: dqm^itt^s: grew 4 
ing . about 4 per cent dr atightiy 
more, especially if European 
and. EM East markets pick Up. 

R. G. Gibb^s 

Altogether, the Alcan group 
in Canada has installed 3J m kW 
of hydro power. It believes its 
decision to develop the KItimat 
power 20 years ago has been 
entirely justified by the world 


•- • 

FORD MOTOR CO., through its 
Canadian subsidiary, Ford 
Motor Co. of Canada, was given 
C$6Stn last August to build a 
C5533m engine plant at- 
Windsor in southern Ontario. ’ 

This outright grant of money 
to entice north of the border a 
pdant that mdglrt have gone to 
Urn U.S. served notice that 
Canada is getting into the incen- 
tive game to lure some of the 
C$40bn the North American 
motor industry Intends to spend 
over the next seven years to 
meet fuel economy require- 
ments and maintain pollution 
control and safety standards. 

The Ford grant was the result 
of an agreement between the 
Canadian federal government 
and -the Province of Ontario. 
After some initial bickering (in 
public) about who was going to 
pay how much, it Was agreed 
that Ottawa would contribute 
C$40m and the province 

anxious to -get -at the; funds 
which ere available from Ottawa 1 
and the provinces for. new 
.plant locations. - 

Ontario, where the bulk of the 
motor industry is, bus declared 
it has no intention of withdraw:, 
ing from the bidding race. While 
it would not compete with 
sister provinces for now plants, 
it would do everything possible 
to gain a plant from a U.S. State 
ur a third country. \ 

The province has also . Stated 
it will not. be deterred . f toft 
approaching the federal- Govern- 
ment for further cash grants. 
A spokesman said: "Cash 
grants appear to be a necessity. 
If anything we'll be broadening 
the scope of that activity. We 
are in a competitive game.** 

A motor industry task force 
set up by the federal Govern- 
ment to look into future invest- 
ment in the industry has urged 
Ottawa to take immediate steps 
to improve the climate for new 
investment in this sector. 

Ford had aSked for C$75m. It 
claimed that much was needed 
to cover the additional cost of 
building in Canada instead of 
the U.5. where costs are lower. 
Tbe losing American State in 
this Instance was Ohio. 

Tbe deal also brought a bowl 
Of outrage from those Canadians 
already angered by an apparent 
lack of new Investment in 
Canada by the North American 
car makers, particularly in rela- 
tion to the size of the Canadian 
market. Last year this 
accounted fur 8.4 per cent of 
North American vehicle sales. 

They argued that Canada was 
not getting the fair share of 
new motor Industry investment 
I they claimed was implicit In the 
j Canada-U.S. Auto Pact of 1965. 
The pact provided for the 
rationalisation of the industry 
in both countries and permitted 
duty free entry of new vehicles 
and original equipment parts 
from each country. 

Safeguards wore included for 
the Canadian industry, made up 
of subsidiaries of the U.S, Biq 
Four. Production In Canada 
was to match sales in Canada 
and 60 per cent of Canadian 
production to have Canadian 
content. Opponents of the Ford 
agreement contended that new 
Investment should come tn 
Canada by right, not by incen- 

The Ford move also brought 
an Intervention from Washing- 
ion. it protested against the 
use of national treasury Funds 
to lure industry, although'lt did 
not mind provincial incentives. 
It was apparently mindful of 
the fact that U.S. States have 
also engaged in a bidding war 
to attract new industry, hi in 
the case of Pennsylvania and 
Volkswagen, or Ohio and 

Tbe significance of the Incen- 
tives granted to Ford has not 
been lust on other vehicle 
makers. They too have been 

Although southern Ontario is 
strategically located for new 
plant sites because of its 
proximity- ' to Detroit, other 
provinces ■— such as Quebec, 
Manitoba and British Colombia 
—sire hot Just sitting on the 


Even. While the Ford negotia- 
tions were under way. General 
Motors at Canada had received 
an offer .of C$80m to locate a 
c$400m r aluminium die-costing 
plant near Montreal. . Ford is. 
ennsideriog an aluminium foun- 
dry project which could go to 
Quebec. . 

General. Motors is proposing 
a diesel engine plant arid an 
assembly operation for Canadian 
locations providing grants ire 
available. The diesel plant 
could go - to Ontario,- .the U.S. 
nr a third country; the assembly 
operation,-- possibly-, of light 
(nicks, efltrid go ttr Ontario, 
British Columbia or a U.S. rite. 

■ The many proposals' for new, 
plants has served tt> deflect for 
the moment criticism In Canada 
of thai CahadsL-U.S. Vehicle 
agreement and the recurring 
Canadian deficit ln trade in this 
sector between tbe two coun- 
tries. offty three of the 
years since 1 tbe pact has bodn in 
existence has Canada had an 
uverail surplus. 

While “most people— ahd cer- 
tainly . The ' . vehicle makers-^ 
agree - that. the paet-.hM been 
beneficial- to bath countries the 
contention of critics is that- 
Canada has been short-changed, 
especially to the area of parts 
manufacture and research and 
development,-. - . 

There-iR-nn strong pushfora 
renegotiation of the bach si-, 
though, the . demand is. often, 
made, but Wider the' &gre 
prodding .of Canadian vehicle, 
parts makers .ihe - federal 

Government -has come "under 
-strong pressure to tn'ddce the 
Big Four to place more parts 
work and R arid D work in the 
country. _ ,r '. ; f ■ 

vLast yearGariiitiabati n trade 
etirplue wtttf grG92.ibn 
tit'i v^itaea; . 00 '^rir cent Of 
Uanadlftn- production gdes to the 
entkfl deficit bf - G*S.ibn 
in parts; resulting in an overall 
deficit tot -GjUbfC , filnre 1965 
.the : ctihivU&tiyh- ; Mil of the 
Canadiaiti’reh^ie .‘trade deficit 
now totaBf: more Than Cdllbri. 
This has bbcurrod .mainly be- 
cause tfie'^paci encouraged 
Vehicle ai«a»ly in' Canada. 
Assembly: requ^ more .wor- 
ker* than jwirii ^manufacturing 
and therefore pjovldeg There 
■jObs. 1 -V. '- ; v‘ .-; ' ' 

In jirne the feiJwal Govern- 
ment decided on yet. another 
■ study of the vehicle* industry in 
Canada. It appointed' Mr. -Simon 
' Reiania n, former ]^tuty,Flnance 
Minister and ofie of ;tl»^ri^nai 
. negotiators, to _ report, .bn: .the 
development of an intertiatipn- 
ally competitive Canadian; motor 
industry, particularly In view of 
the .lh;vestuiciftL.dfecislons..te be 

. made over the 'next few sears. ' 

. The •. Gowiiunent' waiils a 
HalapeiJd growth In the Industry. 
JWlrtr Canada now aecnunting for 
close tp TO . per cent" at. that 
market If feels .tbatr Canada 
should tie, able tb look for new . 
Investment reflecting the 1 lmpbi^ 
Tancfe of the Canadian market . v 
Mr; 1 Refamah's "exaffllnaHon 
covered the nature of oWiershJp 
and control 61 the industry In 
"Caftada (all "{orelgh-owaed), 
research . and r; devbt6pmfi&t 
activity (practically none) as 
welt ag relations' witb : producers 
outside North- Anier lea. Tlieir 
cars^on which there is a id per 
cent duty,-- ateOUnled for- about 
.Iff. per cent of flit total. Canadian 
market, of -idinost- i J> , n -cars last 
■year. 'J- :V “ 

- The Reism&n report, released 
In the latter part of November, 
came down solidly. Sri favour nf 
-developing a eriong ^vehicle 
parts industry . in : -- Canada, 
backed, by .government loans and 
guarantee# - for esphnsura - and 

research and development. He 
said Canada had littie. chance 6f 
. attractins any . major vehicle 
aMembly oprrationfi for- ihe 
North American market . arid 
,had no alternadvc bat-to deve- 
lop its.vehlcfe.pam.-todustiy to 
: .«3mpete on « world to 

.in'tcjoiatioiiai moifeKts, -- - 
. Mr.- Reiaman' said .-tlatx the 
"itime .was not hpw; right to , re- 
negotiate . the-- auto iwctr. as 

Canada might lose more t^caj it 
“ivould gain..; His- report 'alto , 
^contained - a warning about the 
to ‘attftret planted .QSUfidfl. 

; The- use of federal. Canadian 
: farida r he said, risked afltagbnls- 
Jh& .the. .U.S^:. arid might', court 
,'the impositiori -of 
JJ.S, duties, against . products 
■ from, plant built-wlth .tott'lflft 
of helpj - --- •- - 



''■'.fW.-.-'r - • -.X 1 - -i 

> J *- b- . •• 7 

\ '.'.V 

| ih Financial Times- Taesday December 19 1978 




optimism as prices firm up 

THE J^UGE mining and metals 
- industry . stretching across 
Canada, is more'opti-. 

mistic as wScomqs to an end... 
_• dire ‘ In thereqovery - .in most 
. nd&'fesmiu^jneUls prices, rising 
iiop^ for the' role. ; of' wal ,- a nd j 
strength 7 in: p fed bus ~ meta Is'. ‘ 

• T ^ eYe g re signs :of a- more 4 
.favourable ~.tai ^restine, v^dm '■ 
Governatetitx. '-A- -•: '• • l"! '?. < '•: ■■ 

‘In ea^rtoraUdh t the centre . of 
; v e ss tStttBqnt-y ^continues .to ‘.“be 
. Northern/ Saskatchewan, ' where 
■’ thefTttanlam search has reached 

iftver (plitchi Many European 

companies ' have interests in 
;■ ^potential new mines or proper- 
ties, in the' es'ploralion or 
development phases. - 

Bat there are deep problems 
In nickel, and the world bver- 
' supply may wed last another 
year. Inca’s main Sudbury 
mining operations .were shut 

• down in August because of 
mounting inventory and low 
prices, and then Jn September 
the United' Steelworkers came 

: out on a long strike. 

Although loco could ship 
nickel from inventory, its 
enpper was held up by a strike 
at the big Gasp6 Copper 
mines and smelter, controlled 
by the Nnranda Group, in north- 
eastern Quebec. 

The rise In the free market 
gold price to over S200.IU.S.) 

has brought' some new lift, 
to the old Northerri Ontario and 
■northwestern'; ■ Quebec gold 
.mining areas; which are produc- 
ing at ah adnaa l . Jaf e of nearly 
5500m. The- Nqrapda group is 
'planning la develop the Chad- 
' bourne HHlr-property near the 
town .of Noranda; -Quebec, to 
small-scale production. There 
are other small-scale properties 
known for many yjears, but even 
.at current metaLprices, profit- 
able operation - r is doubtful 
because of the fast rise in costs. 

Thft 1 excitement; * n Northern 
Saskatchewan's.. ^uranium belt 
continues despite: signs that lhe 
world uranium • price has 
reached a plateau of USS40-pius 
per pound of oxide for new con- 
tracts. The industry now 
believes the; Midwest Lake find 
by a group headed by Esso 
Minerals (Exxon) may well 
prove one of the. world’s largest 
and richest known uranium 

Another favourable factor was 
last summer’s- .Bayda Repurt. 
commissioned by the Saskatche- 
wan Government, which recom- 
mendpd that the -French-owned 
Amok company should be 
allowed to go ahead with 
development of its Cluff Lake 
uranium mine, subject to strict 
environmental and social con- 
trols. The mine.wouid come into 

operation in the first phase in 
1980-81, assuming all required 
Government consents arc forth- 
coming in the next few months. 

Virtually every major 
Canadian and international 
resource company is repre- 
sented in the North Saskatche- 
wan uranium search. There is 
no sign that the federal Govern- 
ment's new rules saying any new 
uranium mining operation must 
be Canadian-controlled have dis- 
couraged exploration or develop- 
ment. French and West German 
interests have been conspicuous 
in Northern Saskatchewan for 
several years. 

From the drilling information 
disclosed so far on the Midwest 
Lake deposit by Esso Minerals 
and partners Bow Valley Indus- 
tries and Numac Oil and Gas. it 
is clear that mining operations 
could start in 1984-85, and would 
hare a 25-year life assuming 
annual output of around 10m 
pounds of oxide. Cost of 
development is estimated at 
S200m or more. Total tax and 
royalty on production is being 
put at around TO per cent. 

Midwest Lake is the largest 
of a number of Saskatchewan 
uranium finds. Some mining 
people are highly optimistic and 
claim 1U mines could be operat- 
ing in the province by lhe mid- 


Respite from cost 


, dus try in Canada has been given THE OIL OUTLOOK 

' a respite by the decision to post- - •il'T TVm , . 

; pone an increase of the domestic „• .(Eroductibihty in 000 h/d) 

• price of . crude nil and natural 1979 I9S5 1985 

j gas originally due on January 1 Established reserves^ light crude 1.286 606 196 

i next As an anti-inflationary Established reservesof heavy crude 197 104 37 

: move the increase, of C$1 a Light crude from reserve additions 34 151 195 

barrel in the ease of oil, has Heavy crude from reserve additions 29 76 166 

• been deferred until July 1, with Liquid petroleum gas 127 192 48 

• another C$1 to come, nn January Oil sands 145 255 755 

1.19$0.- .... Upgrading loss - — —5 -5 

: -It has been- Canadian policy- . — — 

to bring the domestic price of v TOTAL 1,809 L2B9 1,392 

i oil, at present C$12.t5 a barrel, " — 

. up to world levels by a series of Source: National Energy. Board. 

; steps. The price of gas is linked ■» ■ " 7 i . < ■' ■> 

1 to that of oil: each extra C$1 on 

j a barrel of oil adds 12 cents to day' eacg- ammonia plants built explicitly linked the possibility 
' the price of .1,000 cubic feet af in. 197fT at a cost of $22Qm, of increasing natural gas 
' gas. must market a large portion of exports to the U.S. to a reduc- 

For the manufacturers nf its production in the U.S. tion of U.S; barriers to petro- 
; petrochemicals. : the steady in- Midwest, where markets .. are chemical imports as well as 

• crease in the price of its , main bang depressed by the Gulf other industrial products pro- 
’ raw materials had spelt rising ammonia prices. It says it can duced in Alberta. 

| costs with no account liken of only afford 71 cents a 1,000 cuft Alberta is not the only pro- 
. their market conditions and/'for gas to remain competitive, vince interested in the expan- 
' ability to pass on the increases' While Alberta Gas Ethylene, a sion of the petrochemical 
1 .In the case of their si ster subsidiary of Alberta Gas Trunk industry in Canada. The two 
Industry, oil . refining, steady Line of Calgary, which is build- traditional locations for petro- 
' cost increases -coupled . With ing the key plant, lhe o'nly chemical production have been 
market resistance to increased major petrochemical complex around Montreal, in Quebec, and 
: prices for their products and now being built in Canada, has Sarnia, in Ontario. Both have 
: with the loss of export markets always insisted that its plant recently completed major 
- because U.S. 'Government competitive at current expansions. However, neither is 

' import policy favours crude oil P ric& s* the fertiliser case is likely to be content with holding 
over refined products has instructive for the : Alberta its existing strength. Quebec, 
resulted in ' extremely Jow petrochemical industry. Alberta for example, has been holding 
nrnfit* Gimarla XL itT Gas Ethylene plans to twin its discussions with Gulf Canada 
KtoSSl mmith to seek llbn lb a year cthylene Union Carbide Canada - both 

7wav to help S rafinerief ’ in tbe 1980s - larsely t0 serve of Torpntn. on the expansion of 
Whfle the ■ US ' market ' While it will have the Quebec petrochemical 

Sstxy .to J uot^ B theSme. ' 

straits as oil refining, it has in eastern Canada and probably The interplay of Canadian 

4-9 trim if- inmnc mvi™ nil 'nrir-o over new U.S. plants, it JUust pn i*rjTi- nnlirips and the netrn- 

Ioss ........... 


Source: National Energy. Board. 

taken its lumps. The oil price 

in eastern t^anaaa. ana pronaoiy The inte rplay of Canadian 
over new U.S. plants, tt : .Jnut ene oIides ^ ^ petr0 . 

move products a long way to chemical industry is nowhere 

M,rL-o,c Thaea am ' mavlrafa _ _ . . 

rises are one reason. cnenucai mausiry is nownere 

Take the fertiliser and i t better illustrated than with the 

. explosives -businesses, for t " l ^ wnrM ra 8a of Petrosar of Sarnia, the 

example, two closely Teiate'd ?hen!iM?fndu^v that recently-built ethylene plant 

- indus^ies because ammonium . flooded in the’ 1980s withhro- crude oiJ for ifs feed " 

nitrated both a fertiliser and Sficti^ from plaml !ii S ■*"*- The company has pro- 
a Wasting agent Each time -the Middle East, the developing P°f ed a J 35 . 0111 *® 

cost of natural gas goes up 12 worldi ^ the centra ii y p iSnS !lbn l#l “Perading plant that 
cents per thousand cubic feet, economies that" would rather would upgrade the heavy resj- 
the-cost of the natural gas to give -their natural gas away -than dua L 11161 „^ roduC l C L„^’ 
make one tonne of ammonia lose foreign exchange or see ■ Petros ? r a f Kl Wher eastern 
gjoes up by just under C$5.- their gas flared. The;'$lbn Ca “di an refineries, along 
Ammonia is both a .new Alberta petrochemical complex W1 ^h sooie hravy crude oil of 
ma-teriai for _ fertilisers and goes into production nextiyear, Jl 16 P r0 “ u cea m western 

explosives, and a -. fertiliser and its fate will be the key to Canada, "to a lighter grade that 
itself. But the ammonia indets- the future shape of -the cai l P® V sed ®y refineries to 
try. in Canada and the U.S. is Canadian industry. •’ s.-.. make their normal runs of gaso- 
being hard pressed by imports A vital factor in the expansion Ji . ne - aviation fuel and healing 
and over-capacity, and about 30 Plans in Alberta will be thd out- 0l1 - __ _ 

per cent of UJ5. capacity has come of the nthcr government.- • ■ Alberta op p«ed Petrosar 

been shut down. battle in which the industry from the time it was planned, 

. .. finds itself on the sidelines/Tfrat in part because it wanted the 

WalhAvno- is th ® current round of 'world expansion of the petrochemical 

Vt clUIUlC . . . .. multilateral trade negotiations industry to take place in 

r One small tEla&t in Canada fMTN) in Geneva. . If Alherta only. Now, the western 
ctSed^ te&lJtyJiT ihdS the Canadian petrochemical province finds its ability to ex- 

/..^Sprvr industry is to expand, indeed -if - paad -natural gas markets in 

is to produce at its present the east dampened by the glut 

wr'L^Miu£ !evel on into the 1980s, it. must of heavy industrial fuels, in 

costs of $2 per thousand cubic do g0 wifll war i,j sca i e plants, significant part from a plant it 

f eet or . abQUt _^T° ,?■ tonn % J I >l But, for most products, world- opposed. While the problem 
ammonia production. loe plants in Canada require might be reduced by the build- 

current price for imported ^ eX p 0 rt markets, most ing of an eastern upgrading 

ammonia at the UB. Gulf of logically -U.S. markets, :U.S. plant, that would threaten or 
Mexico is U-S4S0 a tonne, petrochemical- trade barriers, : perhaps delay plans for upgrad- 
While the planes in Canada are including.. tariff levels and :the ing plants in Alberta to upgrade 
buffered by transport costs and u.s. system of. nomenclature-, :heavy oils produced there. 
the 15 per cent differential with Ue high and Canada must -The glut of heavy oils in 
the U.S. dollar, they welcome depend mi the MTN to tear them 'eastern Canada could be 
the rrtief given by the defer- down. As Canada has not been,' reduced if U.S. policy on im- 
nient of the price increase for .-historically, a major supplier-of porting refined products were 
gas. petrochemicals to the U.S.,- it changed. Ottawa will have to 

Even the fertiliser producers has little position in the GATT tnove delicately to find a 
In w'eslern Canada, who have negotiations on petrochemicals, balance of interest between 
been.paying far less for natural Therefore, even though The.u.5. Petrosar. in which it has a finan- 
gas than the eastern plants, are is -known to have a generous - ^jjQ stake, and in which Ontario 
also resisting gas price' levels, offer to Canada on petro- a interest as a pro- 

Canadian Fertilizers of Calgary, chemicals, the fate of that offer . V j ncej an d Alberta, which con- 
jointly owned by. Canadian . and largely depends on what tinyes to find that Petrosar is a 
ikS: fanners' co-operatives, says happens between tne Americans j n - lis s jfl e as jj develops 

that it cannot afford $1.21 a on one side and t ' ,e r° ro ^f lls natural gas markets and petro- 
thousand it pays Alberta and Japanese on • chemieal planls. 

.producers for natural gas. CF, Aiberta knows ihe importance. . „ « 

which has twin 1,000-ton nes-a- of the trade talks and has . Jim KU5K | 

feet or ■ about ‘ $80 a tonne of. 
ammonia production. The 
current price for imported 

1980s, making Saskatchewan a 
producer in the world league 
and more important relatively 
than Ontario and its Elliot. Lake 
uranium belt. However this 
seems on the optimistic side. 

But reliable estimates show 
the province already accounts 
for about half of Canada's total 
uranium reserves, measured, 
indicated and inferred of nearly 
600.000 siiort tons (.including 
Midwest Lake). 

Saskatchewan now lias two 
mines operating — Eldorado 
Nuclear and the Gulf Canada 
mine at Rabbit Lake — and lwo 
in development; Amok's at Cluff 
Lake and another at Key Lake 
in which the West German 
Uranerz group participates. 

The provincial Government, 
determined to increase its 
presence in the uranium indus- 
try. directly participates in 
more than IPO joint-venture 
exploration or dc\ dopment pro- 
jects with the private sector. 
Also it can acquire an equity 
interest in any prnpeny bought 
after March I. 1975. 


Tiie Midwest Lake discovery 
is located on about 1,440 acres, 
une mile wide and six miles 
long, on the Pre-Cambrian 
Shield between Lake Athabasca 
and the Wollasinn Lake Fold. 
Besides a high average uranium 
content, significant values of 
nickel and silver hate been re- 

ported in the ore. The location 
is 1S5 miles south east of 
Uranium City. 

Cenex, Toronto. Gulf Canada, 
and Asamera Oil. Calgary, arc 
niuong those with active new 
projects cither based on new 
finds or on bringing old pro- 
perties back into production. 
All are near existing milling 
plants. The cost of Saskat- 
chewan exploration in 1977 was 
probably around $30 m, and this 
year has risen to somewhere 
between $50 and SI 00m. 

However, there are risks of 
delays in mine development 
from new environmental and 
health rules being written after 
the Bayda Report, possible 
impact of public fears of un- 
restrained uranium mining, and 
inadequate solutions to the 
problem nf nuclear waste. The 
latter issue has been given less 
attention in Canada than in the 
U.S. and Europe. 

Mining and metals account 
for well over - one-quarter of 
Canada's export earnings, and 
governments everywhere have 
recognized over the past two 
years h«»w important the 
industry is to the balance of 
payments. The punitive tax- 
ation imposed in British 
Columbia at the time of the 
last honm in 1973 has been 
repealed and modified and 
there is hope that both pro- 
vinces and the federal govern- 
ment are well on the way to 
agreeing to a more liberal 

approach to taxation. The 
Federal budget of Nov. 16 
brought an increase from 30 
per cent to 100 per cent of 
the write off for federal tax 
purposes of development 
expenses and of the cost of new 
mining town sites. 

The industry- docs not see 
another world crisis in com- 
modities coming in the foresee- 
able future. It is keenly aware 
of new sources of non-ferrous 
metals and other minerals 
being developed in other parts 
of the world where costs are 

Recovery in copper, lead, 
zinc and molybdenum prices, 
and strong gains in cobalt, 
silver and gold have offset 
partly the gloom in the nickel 
market. Silver is produced 
mainly as a by-product of zinc, 
and as zinc demand picks up. 
more silver is available for 

In Quebec-Labrador. iron ore 
operations began again in the 
autumn after a long summer 
strike, and a second price in- 
crease has gone into effect. The 
strikes at Inco and Gaspc 
Copper certainly helped the 
copper price situation, hut 
many in the industry believe 
the price recovery is broader- 
based and will be maintained if 
President Carter’s dollar - 
defence measures do not stifle 
U.S. growth. 

While Canadian dollar devalu- 
ation has restored the competi- 

tiveness generally of the 
Canadian mining and metals in- 
dustry. there is still extreme 
caution in undertaking new 
large capital investment pro- 
jects at present prices. This 
does not prevent the recent 
speed-up in expinraiion in most 
areas nf Canada gathering 
pace. The Northern pipelines 
will open up larsc areas nf the 
Yukon and North-West Terri- 
tories to more intensive explo- 
ration in the next few years. 
There are many prospects for 
non-torrous metals, precious 
metals and also critical items 
such as tungsten in those areas. 


Asbestos markets have been 
slow through much of 197S, and 
Canadian shipments were off 
13.8 per cent in the first seven 
months. There has since been 
an upturn, and sume producers 
have announced price increase. 
The rourth-quarler firming in 
the world market is expected to 
cany through into ]!)79. The 
Quebec Government is asking 
for powers to expropriate 
Asbestos Corp.. second largest 
producer of the fibre in the pro- 
vince. owned by General 

While shipments nf W'eslern 
Canadian coal to Japan have 
fallen off and prices in real 
tonus have weakened, a new 
industry is opening up for the 
industry in Canada. Western 

thermal coal Is beginning In 
move via the Great Lakes to 
Ontario power stations as the 
price of American coal has 
risen and long-term availability 
is subject to doubt. 

In the East, new studies have 
been done of underground and 
undersea coal reserves in lhe 
Mariliines and several new 
mines will be opened in the next 
few years to reduce reliance on 
imported oil in power 

The potash mining Industry, 
an important factor for the 
past decade in the Saskatche- 
wan economy, has had a fairly 
active year and has extended 
its markets steadily overseas 
besides being a major supplier 
to the U.S. Premier Allan 
Blakeney, just re-elected with 
his New Democrat party in the 
province, hns not yet given any 
indication how far the Govern- 
ment will go with further 
nationalisation of the mints. 
Small-scale potash production is 
being developed in New 

The major uncertainty for the 
industry in 1979 is the possible 
impact of President Carter's 
dollar-dcfence measures on the 
American economy. Many com- 
panies argue that most metal 
prices are nol yet high enough 
lo justify new major invest- 
ments. Prices will hold the key 
next year. 


- ■ : J f ■ • 

. . : • - v; ' \ ■ 3 




Nine Countries 

close to our Customers’ Hearts 

- The clients of an internationally active commer- 
cial bank expect more than just comprehensive 
financial services. They want reliable background 
information and advice about their foreign markets 

- about opportunities for exports, imports and joint 
ventures, about the selection of building sites for 
direct investments, about the real estate situation 
and a multitude of other aspects. 

. DG BANK Deutsche Genossenschaftsbankof 
Frankfurt is the central bank and “international arm“ 
of a system comprising dose to 5,000 local and 
ten regional banks in the Federal Republic with 
and evaluate this kind of inlormation from all over 

the world, in the United States, G reat Britain, Luxem- 
bourg, Switzerland and Hong Kong we maintain 
our own bases of operation. Countries and markets 
especially close to our domestic customers' hearts 
also include Australia, Brazil, Canada, Iran, Japan, 
Mexico, Norway, Sweden and Venezuela. 

Likewise, for our international clientele, we 
provide in-depth grass-root information on West 
Germany. We have the facilities it takes to do so: 
Our system operates 19,400 offices - nearly one 
out of every two in the Federal Republic and, in- 
deed, the most extensive national banking network 
in all of Western Europe. 

With consolidated assets of DM 43.3 billion 

(the equivalent of US $20.6 billion), DG BANK 
ranks among the leading financial institutions in 
West Germany, and our system commands con- 
solidated total assets of nearly DM 240 billion (or 
US $114 billion). 

DG BANK Deutsche Genossenschaftsbank, 
RO. Box 2628, WiesenhuttenstraBe 10, D-6000 
Frankfurt am Main 1, West Germany, Phone: (0611) 
2680-1, Telex: 0412291. 


Datisdie Garossenschaftsbarfc 

The broadly based Bank 

• •- 

Finandal .Times 

Tuesday December 19 1978 _ 

■ ixni'tt&fr 


starting, A 
to stand out 

all mm J 


Bonque Conodienne Notionole is fast becoming 
a standout in international banking. 

From our Montreal headquarters, we direct .. 
operations through correspondent banks & * 
in nearly 1 50 countries, on every 
continent. We have thriving inter- 
national offices in Paris, London 
and New York. And on office in 
Nassau, the Bahamas, to facili- 
tate major international loans. 

Through this strong inter- 
national network, we help 
Canadian firms evaluate the v 
solvency of potential cus- 
tomers abroad, and extend 
credit to overseas purchasers 
of Canadian products. 

Since 1 964, we have multi- •- 
plied our assets more than 
eight times— from $960 million 
to nearly $6 billion. That makes 
us one of the fastest-growing 
banks in Canada —and per- 
haps in the world. We now have 
some 490 offices in Canada itself, 
and are opening a new office about 
once every rhree weeks. 

If you'd like to know more about our 
domestic and international capabilities— 
and how we can put them to work for you— 
contact any of our offices. 

Bsnque Canadienne Nationale 

Montreal* Paris • London ■ New York * Nassau/Bahamas 


A bank that enjoys 
as much as your 
company’s business. 

Whoever said that business 
should not be mixed with pleas- 
ure evidently took a pessimistic 
view of his friends. Business is 
pleasure at Dresdner Bank. 

We believe that close work- 
ing relationships cannot flourish 
in stuffy, unconvivial surround- 
ings, so we do our best to pro- 
vide our clients with a friendly, 
informal service. 

First off, we're in the busi- 
ness of implementing goodideas. 
if you haven't any at the moment, 
well be glad to provide a few. 

Then we get involved in 
planning, both long and short 
term and the day to day manage- 

ment of your affairs. We can help 
you in the moneymarkets, with 
. bonds and shares, finance and 
investment advice. 

V\fe can help you find new 
markets overseas. Provide new 
business contacts and invaluable 
on-the-spot advice. 

V\fe make a very good busi- 
ness partner, because we are 
one of the world's 10 largest 
banks with a centuiy of first-class 
experience. The assets of the 
Dresdner Bank group now 
approaching $ 60 billion. 

We make a very good friend, 
because we're the Dresdner 
Bank. Call us. 

gramme to develop Canadian 
energy resources Is going to cost 
something like C$181bn (at con- 
stant 1975 prices) between 19T6 
and 1990. The estimate comes 
from the Department of Energy, 
Mines and Resources. There ore 
others that are a bit lower, but 
all show a similar trend. Spend- 
ing on energy projects, during 
the period will be rising froih 
about 4 per cent of Canada’s 
Gross National Product to 5$ 
per cent — and perhaps to more 
in the 1990s. 

The biggest chunk Is for elec- 
tricity generation, including the 
giant James Bay hydro-electric 
development In northern 
Quebec which will deliver its 
first power late in 1979. The 
long-discussed Gull Island 
scheme for a second power 
station on the Churchill River 
in Labrador may be coming 
nearer realisation. It would pro- 
vide power to the Island of New- 
foundland by submarine cable, 
the surplus becoming available 
for sale to Quebec and, politics 
permitting, to the Maritime Pro- 

But in some ways the greatest 
interest attaches to the C$14.8bn 
expected to go into facilities to 
extract oil from the oil sands of 
the Athabaska and Peace River 
regions of Alberta and near 
Cold Lake on the border 
between Alberta and Sasakat- 

It is common ground that 
these sources of so*called non- 
con ventional oil must be 
brought into play as quickly as 
possible, despite the cost in 
order to offset the decline of the 
normal oilfields in western 
Canada. The latter, it is esti- 
mated, can yield 1.3m barrels 
a day of light crude in 1979, 
which will have fallen to 391,000 
b/d by 1995. even allowing for 
hoped for new discoveries. 

Dresdner Bank 

Bank with imagination 


Dresdner Bank AG ■HeedO^T-SCah^ 

London Branch: 8. Frederick’s Place, London EC2R Bank). 

Branches: Chicago ■ Lee Angeles ^S^ra^racas • Guatemala ■ Hongkong ■ 

Representative Offices: Asuncion ■ Bahrain ■ Btirul * Bogota BuenrewEB !_. w^iaoiHan.UnawwPans- 

Houston /Texas - Istanbul ■ Jakarta ■ Johannesburg ■ La ^Irta • Msdrid^e«co Monie*0flQ Moscow rare 
Quito- Rio 'de Janeiro- Santiago deCWta‘S9o Paulo -Sydney -Tehran -Tbranto. 






1 Delta-Beau fort Sea gas: explora- 
tion under way. 

2 Dempster Highway pipeline 
long-range prospects only. 

3 Alaska Highway gas pipeline: 
construction authorised. 

4 Gas finds. 

5 Gas fiinds. 

6 Expansion of Trans Cana da pipe- 
line: under debate. 

7 Pipeline extension to Quebec 
City ahd the Maritime*: under 

8 Pan arctic exploration 

The National Energy Board 
(NEB), a Government ageney, 
has therefore called for the 
expeditious development of the 
sands. The Parliamentary 
opposition, the Progressive Con- 
servative Party, has done the 
same. The prizes are great; 
NEB estimates that anything 
from 80bn to 200bn barrels of 
oil could be recovered from the 

This year may have been the 
turning point for the Athabaska 
sands. They have been worked 
for some years, with doubtful 
commercial success, by Great 
Canadian Oil Sands (GCOS), a 
company controlled by Sun Oil 
of Chicago. But now, on neigh- 
bouring lands, a new and larger 
plant. Syncrude, has opened up: 
its first oil to reach Montreal 
was delivered by pipeline dur- 
ing October. 

Both GCOS and Syncrude are 
mining plants. The oil sands are 
scooped up by surface mining 
methods and taken to a plant 
where the bitumen is separated 
from the sand by heat and then 
upgraded by chemical methods 
into a synethic oil acceptable to 

Syncrude's initial capacity is 
60,000 b/d, to be doubled 
around the turn of the year 
when the second half of the 
plant comes on stream. Adjust- 
ments are expected to raise the 
capacity to 129,000 b/d by 1982, 
and if all goes well the plant 
can be extended in the mid 
1980s to produce 190,000 b/d. 
GCOS, next door, is itself ex- 
panding from 45,000 to 60,000 


Both plants have been 
guaranteed the world price for 
their oil. whereas conventional 
Canadian crude oil for domestic 
sale is kept down to a price of 
C$12.75 a barrel. Eventually it 
is to rise to world levels, but as 
an anti-inflationary measure a 
planned increase of C$1 on 
January 1, 1979, has been put 
off. Rises of C$1 are planned 
for July 1, 1979 and January 
1, 1980. 

Syncrude also has been 
absolved from the duty to pay 
royalties to Alberta for the 
opening years. Alberta, one of 
the shareholders (along with 
tlie Governments of Canada and 
Ontario, Imperial Oil, Gulf, and 
Cities. Services from the 
private sector) will take its cut 
in the form of a share in the 
profits. If there are no profits, 
there will be nothing to pay. 

The men at Syncrude believe 
that given the present world 
price they can at least break, 
even. Events done can show 
whether they are right It is. 
however, dear that only if they 
can negotiate equivalent fiscal 
concessions will others venture 
into the sands. Alsands, a con- 
sortium led by Shell, has 
applied for permits to build a 
plant on the same scale as 
Syncrude, but must first settle 
the royalty question with 
Alberta. Ottawa has premised 
the world price. 

The same considerations 
apply to Imperial Oil (Exxon) 
which wants to extract oil from 
sands near Cold Lake, where 
the deposits are well below the 
surface. The C$4bn proposal 
would involve pumping steam 
down to the bitumen to liquefy 
it before bringing it up, with 
subsequent upgrading facilities 
along the lines of those at 
Syncrude. The Alberta regu- 

B Thunder Bay V tamW _ transr 

- r shipping Western c*at • 

C Ontario uranium Twines. - ‘ . _ • 

D James Bay hydroelectric - - 

development. - ^ 

E Fundy Bay tidal power proposal: 

feasibility study only. -- \ . - \ 

F Cape Breton coal mines: expan- 
- rich planned. 

Q Gull Island hydro-electric pro* 
posal with ondeesea transmission * 
• to Newfoundland:- obstacles.; 
- diminishing, rf . .! 

Adapted from fnefjgr- jr 
• Ministry,'; of Ener®*, 'Mina* \ and ■ 
Resources, Ottawa, W«» • 

9 Polar; gas pipeline: depends on 
' additional finds. 

16 Ga i transport by tanker, appfi- 
. ; cation soon. . ,, 

H Gas exploration on Scotian shwt 
■ 12 Gas exploration off Labrador. 


13 Abfta Highway oil pipeline: for 
discussion only so far. 

14 Oil . finds. 

15 Athabaska oil sands. 

16. Cold. Lake oil sands. 

T7. Conventional heavy oil. 

A Saskatchewan uranium finds. 

latory authority expects the not keeping 

Alsands and Imperial plants (or supply from. ^^bhshed , 

something equivalent) to bfe 

working by 1986. and new amefous to be allowed to Inoease 
plants subsequently to come on exports tir the > 

stream everv three to four do so without NEB licences. 

a ‘capacity of 210.000' The Board is unhkely to mrfte 
b/d each. The National Energy a decision before completing Its 
Board is a bit less sanguine, current assessm«t ef demand . 
By 1995, according to its fore: and supply, mayte ^^££25: : ' 
cast* the sands will be producing- - _ la the meangnp theDep^ 
755 b/d or 54 per cent of total. -meat of Energy xh. O ttawa ns • 
Canadian oil outpati • ' 'pushing an alternative proposal . 

• South of Cold Lake, in the .-not to export the gas bu t to 
Iioydminster area, maybe- 15bn extend, the existing pipelme ays- 
barrels of so-called conventional 

heavy oil ‘hive .become the . and the Manttme Pr0_^^ and . 
object Of some <pretty sh2rp. -oil them . ^hwe f - 

company infighting. Heavy oil, . ’wealtiiot Jf*- : 
only slightly less viscous thin port . 

the stuff in the oil sands, is domestic price, neithe? 
normally used to make iisphalL^ nor Vtfo^wl ^ 

It can he upgraded into oil ‘ ena^ui^-of^ pr^^ . 
acceptable to refineries, Swugti • Howeva^tbe . . 

at a cost of some *6*8 a barrel; appeal 
Husky Oil, recently - brought ^ d . ' 

under the control of Alberta Blair, who Iws • 
Gas Trunk Line and its pipeline nose, ^possible . 

king, Mr. Robert Blair, has been- ■ : 

angling for fiscal incentives to "Alberta • 

make an upgrading plant viable; 8 * Ies *9 — - rT ^TKtim in*- 

so have Pacific Petroleums* turn - for . ; Mthonfy. to Step hp 
Gulf, the Government-owned deliveries to the 
PetroCanada and Saskoil, owned 

„ Vm. • < 4 oi 4 Acumen 

Mr. Blair showed Ms political 


,-r r 



ewan. For a start it seems 
improbable that more than one 
plant will receive the National 
Energy Board’s approval. - 
Baulked by Mr. Blair in Its 
attempt to take over Husky, 

acumen to. the campaign tihat 
led to a wmortimn headed by 
his company being chosen ' to 
build the pipeline intended to 

Petroain came back by acquir- take Alaskan -gas .to th*{ . 
ing control over the much proper, along the Alcag lwpt- 
larger Pacific Petroleums, witii way. Many doubts slfll ovenransi . 
revenues five times as large as that $llbn proposal, tfamighffle. 
its own. The' obvious reason most serious have “oon tanospa- 
was a wish for cash flow -to by the passage Jd October of the 
finance the Arctic venture. But UJS. Energy jBilL It shouW «6 - .. 

in addition Petrocan may have 
felt that if it becomes large 
enough. Mr. Joe Clark, the Con- 
servative leader, will have diffi- 
culties selling the company to 
private shareholders as be 
intends to do .If he wins next 
year's elections. 

Whereas conventional- oil will 
be running down in * spile of 
some encouraging finds at We3t 
Pembina, in Alberta, there is 
something Like a glut of natural 
gas. Remaining marketable 
reserves ‘'increased from 
65 ,000 bn cubic _ feet in 1975 to 
71.000bn cubic feet in 1977, 
compared with - production of 
some 3.000bn cubic feet a year. 
The Geological Survey of 
Canada estimates that there is 
a 50:50 chance that the country 
has altogether 250,000bn cubic 
feet of gas found oc; to be 
found, and that' 180 .OOObn Cubic 
feet are there with a 90. per 
cent probability- ... . 

Much 'of-- It is in very, in- 
accessible areas. Panarctic (45 
per cent owa&d by Patrocfth) 
already has stone 16/JOObn cubic 
feet on Melyfile Island in the 
Arctic. Dome is drifting in the 
Beaufort Sea. and- .has found 
something, .:lbdugfa. nobody is 
saying wbat; / Imperial, has a 
quantity in the Mackenzie. Delta 
too small to warrant a pipeline 

sure, that there, is a marketfot - 
the Alaskan gas, though nobody : 
can- 'be quite sure wfcteiw Mr>; 
Blair, insists .that, the pipeline 
will be delivering gas -to U.S. 
homes by the winter of 1983-84. 

■ JTT ■ Alberta has ' its way. the 
iniithem, sections of thejilgpipe, ' 
will be laid first - 'to toiabls 
Alberta, to pump to; the; VS. 
increased exports of its owtL - 
surplus gas. There is a . balance % 
of payments argument for doing 
so -but Canada may isMst'.on a . 
U.S. undertaking subsequently., 
to repay the gas with gas from ; 
Alaska. ’The - opposition' has 
come out in favour of that jdea, 
which wojild. fit in with 
tishlng - _ Canadian .. attitudes to 
energy' matters* .r - 
--Exporting *. electricity; for 
instance; always tends to axowse 
hostility, and the whole trend 
in the 1970s has been to try to 
shelter Canadian industry for as 
long as possible from the .'rise bf 
energy costs. : It has JbCea .sag- i 
gested .that the , fierce: Canadian . 
winter is one reason why energy 
exports vtfw^rire :-fts5Se ; . 
arouse. ; passions, .and, 1 ; feats' 
Canada; ; : 'j.. - . 

The truth <»f the watte?- 
that though oU eagiorts will: 
almost certainly. cea$e M I982, . 
in. the mld-lSBOs. Canada wtiT ; able to produce sb$twcen 



of its own; Eastcan is drilling l.eth-and . b/d..of 
off Labrador, in- watersmade hii- oil, or more than haH it& forft ; 
safe- by Icebergs. Imperial will cast -ednsuh^fioh- ^of Vsam^'- 
do the same in 1979. 2.8m’- b/d, fa’rftetf - 

Moreaver,:proven reserves are. -tiownihe Ime^ ^BanJsofWvt . 
increasing in-AJberta and British Scotia. fbr«asts.rithxt ;&-wl99ft.: 
Columbia where the difficulties . fianafifan "ftyports 1 - 
arc less formidable. Panaictic 

is ready to make an application balance; That <fe' less ' wasting, 
to be allowed. to.moor a floating. . thbbgHf %ati* • 
liquefaction plant off Melville 
Island andrtoiip gas by tanker 

4 « T - H 

through the . North West Pas-, 
sage to Canadian markets. With 
20.000bn ' ciibic : feet it could 
think of a- pipdin*.- 
But at tiie moment demand is 

IB;#, fpast iew. years:: feiP it. 
riiouW be- eahugb-- 

in winter. 


Y* - • » .V. • 

& ■ - 

' - ■ T-\ '-j-i "!s.-- •- - 


financial Times Tuesday December 19 1978 




* . A 



-i ;;i 

THE CANADIAN Guverrunent 
has announced its shorTlist uf 
aircraft fur its C$23bn fish ter 
acquisition programme, reduc- 
ing six cun tending, aircraft to 
two and ruling our a mixed 
fleet It is now entering into- 
draft contract discussions with 
the prime contractors. Indus- 
trial offset arrangements will be 
a major determinant in the 
selection of the winner. 

The finalists are Canadian 
versions of the ‘ General 
Dynamics CFrlfi.. and ; :the 
McDonnell Dougias/Noirthrop 
CF-18A, the Canadian version 
of these aircraft. 

Ottawa let it be known that 
only these fighters would meet 
its need for 330150 aircraft 
within its act budget and for 
its domestic and European 
military commitments. It 
eliminated -as being too expen- 
sive the Grumman F-14, 
McDonnell Douglas F-15 and the 
European Panavia Tornado, 
while the Northrop F-18L, 
which is still in the design state 
would come into service too 

All contenders In the early 
stages of the competition had 
said that they were ready to 
pllce offset work in Canada up 
to the full value of the contract, 
including .final assembly and 
teeing. Some of this- work is 
erected to go to non-defence 
ministries but a buoyant 
Gated! an aerospace industry 
expels to be. a prime recipient 
It |s already busy with civil 
prarammes of its own, and is 
warning closely to see what 
benfits will come its way. 

Tie final whiner will not be 
anounced before next June. 

^hen announcing the two 
finiists Mr.. Barnett Danson, 
Defnce Minister, said that the 
F-li has been selected by five 
N^O countries in Europe and ■ 
woe it does not have the 
so|istication of the CF-1SA, it 
is ie only aircraft at this time 
wlph eouJd’provIde the number 
retired for the money avail* 
atf. If selected it will be fitted 

with i wo Sparrow-; raxlar-gtudcd 
missiles. •* -• " ■■■ 

The CF-18A is. larger and 
.more . experjHivc than the CF-16 
. !,q fewer could be acquired. but 
being twin-engined it has gout] 
potential - for Uie future and 
could be fitted with-new systems 
to mevt future demands both at 
- home and in. NATO. •. 

- The new aircraft will replace 
the CF-194s now in Europe, the 
CF-IOf- Voodoo in Canada; and 
the CF-5 used for air support. 
Both the CF-104 and CF-lDl .&rc 
to be phased out in 1083 ami 
the CF-5 in 1985, when it will 
he converted into an advanced 

Of the new aircraft; 54 are to 
be based in Europe,' 35-40 in 
Canada for air defence, find 24 
for service in NATO northern 
Sank operations in Norway. 

Mr. Danson said that discus- 
sions could now begin during 
which the Canadian industry 
will be able to take part Hi 
ensure an Industrial benefit h> 
Canada. Industrial benefit to 
offset the purchase was a re- 
quirement spelled out in the 
request for proposals- on the 
new aircraft. The Government 
has let it be known that it does 
nor want merely e round of 
metal bashing which will stop 
when the programme .is com- 
pleted. It wants more per- 
manent programmes, particu- 
larly in the area of advanced 
technology transfers. . It is look- 
ing for projects that can be 
developed in the country f *r 
hutli domestic and export mar- 
kets. Whatever is achieved in 
this area, the new contract will 
mean more business for. the 
Canadian aerospace industry at 
a time when its assembly bays 
are already filling up with work 
in process. 

Part of this work has come 
from manufacturing com- 
ponents for the Aurora long- 
range patrol aircraft . for the 
armed forces purchased! from 
Lockheed. The Aurora "-is a 
hybrid using LockheBdV P*3C 
airframe and the electronic 


.surveiitanue equipment of Lucfc- 
lu-cd’s Vjkintf aircraft. 

The cost is $lbn for IS air- 
craft with Lockheed (loins final 
assembly and testing in the U S. 

Lockheed is committed, how- 
ever. to placing almost all of this 
value back in Canada through 
Lite distribution of industrial 
benefits over ihe next 15 years, 
$400m of it by 1983. Component 
work remains in Canada and 
will share in any future sales uf 
the P-3C up to at least 150 air- 
craft, including the 18 pur- 
chased by the Canadian forces. 

The industry was disappointed 
because the Aurora offsets made 
little provision for pernianeot 
technology transfer leaving it 
with the role of a rubricator nf 
parts for assembly elsewhere. 
Lockheed hod offered the 
installation of the electronic 
avionic package >□ Canaria hut 
that would have en lulled an 
added cost which the Govern- 
ment was not willing to pay. 
With the fighter programme the 
Government appears to be ready 
to pay the premium for final 
assembly and testing even 
though it may mean buying 
fewer aircraft than If they had 
been purchased off the shelf. 

The Canadian industry is 
aware that It is not practical for 
it to try to fill all of the needs 
of the Canadian market and is, 
therefore, hoping to obluin 
some specialised transfer of 
high technology that can be 
maintained as continuing pro- 
grammes to end the up and 
down cycles with which it lias 
had in contend in the past. It 
still remembers the collapse 
that followed tlic cancellation of 
Ihe Canadian-designed Avro 
Arrow fighter programme in 
195ft, when 15,000 workers were 
thrown out of jobs almost over- 

Sine? then the industry has 
built itself up again with the 
help of military productions 
sharing with the U.S.. and the 
development of products for 
domestic and export markets. 

The sLUuulus has to come not 

unly from the miluarj pro- 
gran line hut from vivit priijt-. ■ 
a.( well — Ihe i:haileuc> r •.•.'tfle- 
budied business .ici > anada.r. 
the Dash 7 lurb>iprup .urtii:- r Ml 
de HnviHand A i reran "f nada. 

continuing del?* . ;ul the •- misli 
turbine and jet eir’inv- -if Pratt 
and Whitney i,f Canada. i*:iJ 
siib coni .'art ;n the 
U.S commercial airliner market . 

I,ur-l;hei-d and Hix-llig have 
pieced .-I'.'nilicanl i:untjr:i:l>. enn- 
nei-U-rl wirh iheir nev. ruin- 
nieriiil airerafi with Canadian 
tirnis. i)r>ugbi>- Aima.'t ..f 
Canada which pruriu> i-. the 
wine? fur the McDunneM 
Douglas TJC-'.l mu] I.H'MO. will 
also make wing- tor the new 
DC-P Super 3u .nnl (he D«.M*» 
aerial tanker J'er the U.h. ^ir 

A recent inrlu’-” ry laii: f *ive 
report stated (he Canadian 
industry ha> undergone a 
crailual ninvei'sinn from an 
Juv-ard-lmiking .supplier ->i mili- 
tary products in a primarily 
export-orient cd industry nrudm.:- 
Inj: largely commercial products 
that are Internal ii>na My ritm- 

Govern m epr sunpnri made 
available the loans and guaran- 
tee.-. for ihe dovclopmeu: nf the 
Challenger and th rt Dash 7. The 
Challenger, wi'h 1U8 order, and 
25 options, passed a ni i lest one 
nf its development early in 
November witfi its first flight. 
Deliveries are to Iwc in next 

Sales of the Dash 7 in the 
early stages were disappoint- 
ingly slow probably hceausc it 
appeared at a lime uf a world 
wide fait off in aircraft orders. 
Bui in October, the company 
announced orders and options 
for 20, bringing total orders to 

Total production in the 
Canadian aircraft industry hist 
year was more than $50001 of 
which 80 per cent went to ex- 
port markets. About 100 com- 
panies are engaged in 
manufacturing work. Produc- 
tion, nut counting expected 
benefits from the new fichter. 
is expected tu rise to Slbn by 
the early 1980* employing a 
work force of 32,0011. as against 
25,500 in 1976. 

Ken Romain 

in Nova Scotia 

John Glhhun- -p.-n: -i:; months 
lie fore leaving Kt-j.-.ihI for Vnvji 
Scotia in persuading his company. 
Kairei Aviatiun. tu si-iul him for 
only i.m* year. That was in 
1P30. AHImiigh la’ returned to 
Kngkuid for : i«s n*in'*i)il<j:<N mill 
on many trip*: since, 

lie plan.* i“ rivn.uu in Nova 
Srotia. " Wild bin m*!? wouldn't 
yet Inc* on! nf i be Province in 
itn* summi-i.” 

"There arc Mpn.iriamllcs for 
people in Nova Si Mid to do a 
variety of liiing-- here.” said 
*.!r. Gibbon:-. ’I wouldn't • 
hcslialc to encourage anyone who 
wants tn dcvchr.i industry in 
the Province. Th-.-ro arc 
particularly guml <>|iparlun:Ues 
fnr small bu*tln»s ms. PcupJj* 

Ihink of Toroniti as being the 
niecL-a -tor busiric..,; in Gan-ada. 
and Nuva Sentia the j'criphcry, 
hut In thu pre-sen', econiunic 
situation almost Lhv reverse is 
true. Tli.* i' v.ism knows hr; 
business cnulii make his fortune 
herein alino t any field if he'* 
prepared to wori;.” 

Born in the centra d I licul centre 
of England in Leamington Spa. 
Warwickshire, .bihn Gibbons 
qualified in engineering at 
Coventry. Now h»* i; president of 
Haltcch Scientifi.; Ltit.. of 
Dartinnuth. Nova Scotia, a 
company which provides 
professional servi in the 
testins and ln-jio.-tinn ol 
machiucry, .'.oils and concrete. 

His company offers services 
unique to the Atl;mii L - Provinces, 
unobtainable cast o i Munti'cal. 

Mr. Gibbons ipcai-s from his own 
experience when he talks about 
making a sueccss out of a 
business venture in Nova Scotia. 
His company was one of the two 
which look over the assets of 
Fairey Aviation when it cejsed 
operations in « '.anuria. Haitccb 
has been in existence since 1970, 
and in that time has achieved 
a stability and reputation fiu-L 
that, “This past year bas oecn 
our bust ever.” 

“When you’re in ; our own 
business yr.-j end up doing i? 
all.” said Mr. t ij b bons. "That's 

John Gibbons and his son Jeffrey aboard “On- no ■'a" In HaHfax haa-bour 

Photo by SccnAc Ptwiography 

the in teres ung part of it." The 
company’s recent projects 
include inspeeiing a Russian 
ship's crankshaft, inspecting and 
-lea ling machinery’ in the 
Ealimrst region of New 
Brunswick and X-ray icsling a 
Canadian Armed Forces ship at 
Shelburne. Nova Scotia, as well 
as work fur Nuranda Minus. 

Mr. Gibbons’ experience will: 
Fairey Aviation included many 
busings trips connected with 
Fairey’b perfection of a 
helicopter haul-down system. 
This system, which allows 
relatively small ships lu become 
upu rational platforms Tor 
helicopters, is now in use by the 
Canadian and United States and 
Japanese navies. He states with 
assurance, “having seen all 
these places. 1 still think Nova 
Scotia is as good a place as any.” 

Mr. Gibbons married not long 
after coining to Nova Scotia, his 
bride bavin? come to Nova 
Scotia when bar father also 
moved to the Province. Their 
daughter Jill, is completing her 
degree at Daibousie University, 
and is a Provincial sailina 

champion. The Gibbons sail »be 
“Chenora”. a British built 2S 
foot South Coast One design — 
an Important reason why Mr. 
Gibbons docs not find foreign 
holidays attractive. 

“Above alL the sea is an 
attraction to UK people.” said 
Mr. Gibbons. He sues natural 
and cultural utfinilics between 
the UK and Nova Scotia, md has 
proved in his own iife there that 
an Englishman can feel at home 
in the Province wbMe making 
use of the experience he brings 
with him. ‘Til'.* oceans that 
provide us with so much 
■pleasure anti recreation 
represent today perhaps the 
greatest underdeveloped 
resource in Nova Scotia.” 

John Gibbon-, like many people 
wbo have cume to live and work 

in Nuva Scotia has found that 
the Province surpasses ail his 
expectations. "There are things 
here that money can't buy." he 
said with the enthu&iasm of a 
man who finds time outside his 
job for a rewarding private life. 

More information about 
business, industrial and 
investment opportunities in 
Nova Scotia is readily available 
in the UK through the office of 
the Agent General or Nova 
Si'Oliu. L4 Pall Mall. London 
SW1Y 5LU. England. 

Tel: 01-930 6504 
nr on the Continent 
J. Drummond Fraser. Manager 
Industrial Eslalus Ltd. (Europe), 
Niederkasseler Kirchweg 95. 

4000 Dilsseldorf XI, 

Wes! Germany. 

Tci. 0211-55363. 


IS TIDE has turned for 
Cada's ocean fishing industry. 
Uh prospects of the country 
homing the world's leading 
$ exporter, fish company 
sres have suddenly taken on 
pnDur stock proportions, 
increased prices and Iand- 
(s have produced record 
jfits. Takeovers and mergers 
t creating - stronger, more 
‘ acentrated corporate -group- 
•• js. Vast Capital investment 
: pgrammes are contemplated 
id. for the first time in 
cades, fishing rates national 
_.-i‘ 'litical attention. 

" As recently as 1974, the: 

' ' ' flustry reached its lowest ebb. 

■ a the West Coast,, once prolific 
irring stocks were virtually 
T iped out. Lucrative salmon 
-id halibut fisheries ' helped 
■ tep that industry afloat, but 
/en these stocks were under 

- :.T-'iong competitive pressure 
' :pin other .fishing nations on 

j;'- 4e East Coast. The Atlantic : 
. .shery was reduced to -near. . 

• restitution by low prices; and 
t jver-expioifation. Only about 

- '*.-^$130m in federal price support 
-• -] payments and another C^OOm 

. T - \.;n capital aid to fish processors, 
;irept the industry ' alive and 
.'maintained employment for its 
vjte.OOff workers. 

The turnaround began two 
' years ago when Canada adopted 
h 200-mlle offshore economic 
.. : -aonc, assuming management 
' control over 2m-square mites of 
.ocean and Arctic waters which 
. •: had previously been the happy 
hunting ground of nearly 20 
; nations. It moved quickly to 
; reduce drastically the catch 
. ‘limits on almost all species. In 
.-.?the first year quotas in the 
1 northwest Atlantic ' were 
.. reduced to 650,000 tons from 
. . the 4.5m tods landed only, a few 
years earlier! _ 

. ' ' • The subsequent improvement 
, in the industry, add the likeli- 
1 - hood that hy 1965 fish exports 
could be worth almost as much 
. ' as the C$1.8bn of wheat ' cx- 
. - '-ported in 1978, has sparked 
.-••.enormous controversy over the 
!• corporate and political direction 
of the industry. 

The mood Is . such, however, 

• '.that the Federal Fisheries 
.-'Minister, Mr. Romeo 'Leblanc*. 

was able to say recently that 
; V* there has never been so much 
• money, never such stability, and 
: .-rarely such optimism on the fish- 
. lag grounds” 

' Pacific salmon, have become 
'-the single most valuable species 
and the success of a federal 
salmon enhancement programme 
suggests that stocks may eventu- 
' ally double. A four-fold increase 
’ /of Pacific ground fish , is pre- 

: ^.dieted* 

On the. East Coast, landings 
’[ - Were up 23 per cent in the first 
. 'nine months of this year and 
- *value increased hy .49 per cent'. 

", .to CS263m. Processing increases 

the landed value two or three 

Mr. Leblanc hqs said that the 
improvement hqs produced side 
benefits, . apart, from the mere 
increase in revenue. 

“There .ijf a new feeling of 
stability about fisheries. Catches 
are mora reliable, plant work 
steadier 4 and stretching over 
more ..of the year. There is 
growth in fishermen’s organisa- 
tions.'- Fishermen have gained 
status, no longer is their in- 
dustry an employer of last 

.. While they agree with Mr. 
Leblanc's assessment. . the 
premiers of some of the coastal 
provinces and, certainly, the 
heads of most major fish com- 
panies, put a somewhat different 
interpretation on what has so 
far been achieved and what 
should be done in the future. 

They think the Fcderai 
Government, which constitution- 
ally has responsibility for fish- 
ing. left It extremely late before 
curbing excessive fishing by 

After having imposed the 
200-mile limit, they think,! 
Ottawa should have moved 
quicker to draft and fund a 
major fisheries expansion pro- 
gramme. The East Coast 
trawler • owners, particularly, 
would like permission to get 
Into large, freezer trawler 
operations, using them to cut 
costs and to improve produc- 
tivity, both in exploiting new 
species prewously not harvested , 
by Canada and in the pursuit of 
traditional species in distant, 
northern waters. 

To some extent they have 
been supported by the leading 
fishing provinces. Nova Scotia 
and Newfoundland. Some 
doubts exist in these provinces, 
however, about the desirability' 
of adopting the kind of vessel 
which had largely led to the 
previous overfishing. But there 
is full agreement on the need 
for a strong, private enterprise 
presence in an industry which, 
they feel, Mr. Leblanc is trying 
to place under Government In- 
fluence. His policy has been tn 
reduce Immediate expectations, 
to concentrate on restoring de- 
pleted stocks and, most 
important, to see that future 
benefits are shared by individual 
fishermen and boat owners as 
well as the big, mechanised, off- 
shore trawler owners and fish' 

Angered especially by the 
Minister’s encouragement of 
greater unionisation among the . 
fishermen,, companies like 
Nickerson-National Sea Pro- 
ducts, the result of a recent 
merger, have launched an 
advertising ' campaign stressing 
the need for increased Canadian - 
catching effort and a stronger, 
private industry involvement in 
internatlonaJ marketing and pro- 

duct development. Without it, 
the companies' argue, many nf 
the benefits of the 200 mile limit 
Will be lost. 

- At this stage, with round one 
barely over, it seems Mr. 
Leblanc's viewpoint Is winning. 
He says many an unjustified 
hope associated with the advent 
of the 200 mile limit seems to 
have dissipated. The provinces 
.are increasingly coming to share 
his position. And certainly, the 
fishermen generally support 

While some larger and more 
productive vessels will certainly 
be needed, particularly if 
Canada is tD develop the 
northern cod stocks of Hamilton 
Bank, the industry probably 
will not be allowed to acquire 
a- large fleet of big freezer 

Ihe example of the squid 
fishery explains why. An allow- 
able catch of 100,000 tonnes of 
squid is possible on the Scotian 
Shelf off Nova Scotia, a third of 
it reserved for the inshore fleet. 
‘ Five freezer trawlers could 
harvest and process the rest, 
! creating oniy very few jobs and 
adding to the problem nf the 
-so«ca]]cd by-catch, meaning fish 
of other species caught along 
with those required. 

.. Alternatively, the squid could 
be harvested by 100 modern, 12 
mao squid jiggers, vessels which 
lower and raise 36, 30 metre 
lines'to catch the fish on indi- 
vidpal barbs Fish caught in this 
way command a much higher 
price .in tbe Japanese market, 
the principal sales area for 
squid. , 

- With a 16 per cent unemploy- 
ment ' problem in some of the 
eastern fishing provinces, it’s 
obvious which alternative 
Ottawa will go for. 
...Constitutionally, Ottawa con- 
trols: the Canadian fisheries. 
Naturally there have been 
suggestions among fishing 
Provinces that they should suck 
this power for themselves as 
part . of the constitutional 
reforms under somewhat 
desultory discussion. Reaching 
agreement in an - area of so 
many conflicting issues will not 
tie .easy. 

. .One argument against a deal 
of .this kind is that Ottawa must 
handle the age old dispute with 
the' U.S. about the delimitation 
o£ national : fishing waters. 
During the summer it erupted 
into tbe so-called fish war. 
Canadian and U.S. fishermen are 
still barred from fishing in each, 
other's , waters and Canada 
recently hardened its position 
by extending the territory it 
claims bn the East Coast by 
another 23 miles. . 

Third party arbitration may 
be the only way., out of the 
impasse. - 

Lyndon Watkins 

With more than 1000 branches, 
offices and agencies in Canada 
and 45 other countries, Scotiabank 
is very much a world bank. 

And we’re a large t me at that: our 
assets exceed C$25 bilii< ms. 

Since 1889, when our inter- 
national banking began, weVe 

grown into the modem global net- 

work we are today. In fact, we’ve 
opened in 17 countries in the past 
5 years alone. 

Scotiabank’s experience can 
be invaluable when you need 
advice on a set of complex tariff 
regulations. Our organization is 
essential when you require instant 
decisions in a rapidly-fluctuating 

currency market. And our size is 
imperative for large-scale financ- 
ing in today’s international trade. 

If you have a business that 
takes you abroad, find out the 
advantages of a truly world bank: 

We’II make you feel right at ; 
home around the world. 


Rpra nnatlihif.I.iiH^i Kmi'ili.iiii. 1 .>nii|it\ Micldlul jf .1 -iiiO • 3 iln«-.i 12 ffrrki-lrt S^u.irc, Lnnilnn UIXliHt '. 1 uIu|iIiiiiu.'U 1>1‘J] 
Cv.'iii'rnlOlliu.*: 14 KiimSIpvt Wusi.'lnrniitv,i >iMario.Caiiail.i M-1H iK'J. 

lex 2X519. 

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no surprise.- .Vr 

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gorrtinen aj^i 

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^p^rffl^^^^-opces, fep-^ 

nVoTved .in bank- 
different ^;- % . 

fe%ltS^lt £$i§ ■ 3f 

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^{d^ n^ed^ o£Jf 
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WHILE MANY of the world's 
steel plants have been running 
at two-thirds of capacity, the 
largest Canadian ' mills have 
been going full blast and post- 
ing solid profit gains. Their 
success can be attributed 
mostly to good planning, sur- 
prisingly good domestic sales, 
and the deflated dollar that has 
boosted exports and kept out 

Order books indicate that the 
industry will be in good shape 
until the end of the first quarter 
of 1979, but it is difficult to pro- 
ject demand for the rest of the 
year aod into 1980. The 
economy seems headed for 
slow growth and the pipeline 
projects the companies hope 
will spur a new murid of capi- 
tal spending, may not get early 

Moreover. Peter Gordon, 
chairman of the Steel Company 
of Canada, has been saying for 
several months now that the 
industry is entering “what is 
probably the most difficult and 
challenging period in its his- 
tory'-’* Although profits look 
good, demand has been growing 
slowly, costs have risen quickly, 
and operating margins have 
slipped. Despite the slippage, 
though, the big companies are 
currently well in the black. 
Toronto-based Stelco. Canada’s 
largest producer, reported a 22 
per cent increase in sales to 
$1.34bn at the end of nine 
months of 1978. and boosted its 
profit by 33 per cent to 892.9m. 
Management told shareholders 
“the outlook for the fourth 
quarter’ continues to be 
i optimistic.” 


The second largest producer. 
Dominion Foundries and Steel 
of Hamilton. Ontario, stated 
that the “outlook for the 
balance of the year remains 
excellent, and it is expected 
that the strong demand will 
continue through the first 
quarter of 1979." Dofasco's 
nine month profit climbed 35 
per cent to $84.7ra on an 18 per 
cent increase in sales to $799m. 
I is shipments of mostly flat- 
rolled products have been 
rationed to customers. 

Algoma Steel Corporation, of 
Sault Ste. Marie. Ontario, a 
close third in terms of output, 
has been undergoing a steady 
turnaround in recent years and 
its nine month gains were 
even more impressive. On a 23 
per cent increase in sales to 
$6l8m. profit more than doubled 
to $46.5 m. Algomar also said 
sirong demand is expected to 
continue through the first 
quarter oF 1979. 

These three companies, all 
shareholder-owned, account for 
75 per com of domestic 
rapacity, so the industry is 
basically in good health even 
though Government - owned 
mills in Nova Scotia and 
Quchec have been heavy insers 
— and one privately-owned 
mini-mill in Quebec went bank- 
rupr last year. The industry 
produced 14.5m tons from its 
19m tons of capacity last year, 
and operating rates have heen 
higher in 1978. 

This year strong demand Tor 
flat rolled products has come 
Trom the automobile, appliance 
and other light fabricating 
industries. Small diameter pipe 
has also sold well because of 
i he high level of oil and gas 
drilling activity in the west. 
And although domestic need for 
strut-trials has been soft, 
Canadian fabricators have boon 
rnovins tonnage into the U.S. 
with the help of the low-valued 
Canadian dollar. 

Most producers have operated 
profitably over the years by 
matching rheir expansion to 
the growth of the domestic 
market, and by adopting the 
best of home-grown or imported 
technology. This approach is 
generally expected to keep the 
industry in a good position but 
a combination of circumstances 
has created longer-term uncer- 
tainties, a government study 
pointed out earlier this year. 

For a start, growth of annual 
demand is expected to decline 
because of the trend to smaller 
cars that require less steel, the 
running down of benefits from 
the Canada-U.S. pact for free 
trade in automotive products 
and the improbability of further 
import replacements. Growth 
in demand during 1980-85 is 
estimated at 3.3 per cent a year, 
compared with 5.8 per cent 
average annual gams front 1956 
to 1975. 

The report also slated that 
Canada will have "a transitional 
surplus of steelmaking capacity 
lo about 1980-82" Fortunately, 
it is also expected that “demand 
for steel in the U.S. will press 
against steelmaking capacity 
thorp when the U.S. economy 
fully recovers. There will then 
he a transitional opportunity 

for Canada to increase its steel 

Cheering as that prospect 
might be. the Government 
report concluded that the over- 
all slowdown of demand arid 
production could -be trouble-, 
some. Without faster growth, 
investment would probably 
decline and the industry’s com- 
petitive position could be lost. 
Competition in the years ahead 
may come not so much from 
Japan or Europe but from 
countries such as Brazil and 
Mexico, where rapid growth of 
steel production is planned. 

Judging hy the list of expan- 
sion plans, the industry has 
more faith in its prospects than 
do the civil servants in Ottawa. 
The three largest producers 
have all added capacity over the 
past few tough years — the most 
ambitious being Stelco's new 
$ 500 m-plus plant on the shores, 
of Lake Erie in southern.. 
Ontario about 40 miles from the^ 
main mill at Hamilton. 

In western Canada. Inter:, 
provincial Steel and Pipe of=. 
Regina. Saskatchewan has 
undertaken an $S0m expansion'. 1 . 
The company is about 20 per 
cent owned by each of the 
Governments of Saskatchewan, 
Alberta and Slater Steel Indus* 
tries of Hamilton, an affiliate of 
British Steel. The money-losing 
Quebec company, Sidbac, con- 
tinues to expand. 

Stelco began planning _its 
Nanticoke plant in .the labe 
1960s, and has delayed construc- 
tion on a couple of occasions 
because of slack demands But 
the schedule now calls for .com- 
pletion of the first phase of |he 
plant by mid-1980. Finishing 
of Nanticoke steel will initially 
be done at the company's Hilton 
works in Hamilton. \ • 

Nanticoke will at first have 
blast furnace and basic .oxygen 
furnace capacity of 1.3m tops 
that can be expanded to .2.5m 
tons relatively cheaply. It is 
said to make use of highly 
efficient sieelraaking methods, 
including conveyor belt feed for 
the blast furnace, continuous 
casting, and extensive use of 
conveyor systems for the- in- 
plant movement of slabs. 

Given the medium-term out- 
look. Stelco has taken a calcu- 
lated risk. The company be- 
lieves first, that Canada needs 
considerably more capacity to 
provide steel for various energy 

projects— more oilsands . plants, 
heavy oil upgrading plants, pipe- 
lines, nuclear power plants, and 
so on. Second, management is, 
counting on export opportuni- 
ties as U.S. . steelmakers axe 
forced to close down their un- 
profitable older mills. ' 

. Stelco's " green field;' expan- 
sion could coincide . with what 
fcennomists guess will, be .a 
period of renewed capital spend- 
ing spurred initially by the 
S12bn Alaska Highway gas pipe- 
line to carry gas from the North 
Slope of Alaska to mid-cnntinenr 
markets. Stelco and Interpr.o- 
vineial Steel are the. only 
Canadian companies, capable of 
making large .’diameter .pipe, 
and they are expected to . split 
the hulk of contracts for -the 
Canadian section ’. „ /.; 


The project is big. hut its im- 
portance is seen mostly as a 
catalyst for economic activity. 
The steel heeded will amount to 
only 4 per cent of total .con- 
■sumption over the time the pipe 
is made. But more pipe may 
be needed to extend a 'gas' pipe-, 
^line that nnw delivers Alberta, 
gas to the U;S. raid-west, 
Toronto and Montreal — if any 
of the competing bids for east-, 
ward extensions or additional 
everts of gas to the U.S. are. 


Meanwhile, new ' oil and gas 
discoveries in Alberta :haye- td; 
be hooked into pipelines; and 
work will probably begin Within 
a few years on a third oil' and 
mining plant (headed by- Shell 
Canada), a major heavy 4 oil re- 
covery project t headed by Im- 
perial Oil, Canada'sTSxxan sub- 
sidiary), and a .hedvy oil 'Up- 
grading plant. The price tag an 
each of the first two projects is 
about S4bn. 

In a country that is Targe 
and unevenly populated, there 
is no one market for steel- 
makers tut rather a collection 
of regional markets* The largest- 
markef in central- 'Canada is 
supplied ''-mainly by -'tWe-' inte 1 ; 
grated \ producers — Stelco. 
Dofasco and Algoma. There 
are 14. Mini-mills to serve other 
parts- of the country and 
imports are strong in -coastal 
markets.. ' ' • 

. Steel imports, -mainly from; 
the U.S.. have averaged. :aJjout 
14.5 per cent’ Of consumptian- 
during the 1970s. Imports have' 

generally exceeded exports, but 
over the p'ast lwp . years the ; ^ 

opposite has been, true and the i . 
industry hopes .' tins ."Twill j 
continue. '• ; ' _ . I ■ ' 

The low Canadian .dollar, pas .. 
helped keep back imports - hut, - '* 

in .addition,., special anti-' .fl "' 
damping . procedures have been ; 
undertaken ' by . the . Canadian .' 

; Government to parallel ptqtec- }. j 
tive measures ^'tttken-iii: Europe i 
and .the U.S;- The -Canadian a: . 
industry feared that offshore • 
steel destined for Europe or the ‘ 

U.S.-. would be diverted 1 .to 
Canada, so a special -steel, task 
force . was -set np *• within 
Ottawa’s .Anti-Damping ; Direc- 
torate.* - i • --V 

The task force monitors fm- 
ports of steel andTs-'sopposed 
-’ to accelerate vY'- 

cedures and deal- ’with. .. them . 
within three mqhtjis: ^Thej.tasJc 
force uses a ’^beccbmrlf or 
trigger p rice. .sySleiti,^ aUhfHgh 
it . does: not. . Sayffirhat: tfese 
prices aTe. or wfiethe^-a.jire- 
posed import ^de^ is ^ikey to 
bring- a dumpiog-efiarge. -^® 

. off foreign .producers, soinriin- 
. porters have, claimed Y'Y-.- 

Tbe-l£S. : trigger; pripfrsjdem, 

. meanwhile. hasnabt been seep- 
ing Canadiairst^lbr^rutural 
products out of the U.STmlket. 
Industry officials beliavr the 
trigger- priees are -aiihef'; pri- 
.inarlly. against . japan&seL-and 
European „ producers, but they 
also fear that if the. "exftiiis 
.system -'tides :hpt-j : -,w'&-k ; r’a]I 
foreign steelm^ert'Wtitb^sab- 
ject’ to/more fefa cti y e’ qdtas. 

Whafc-fornibf'protfeetio .; the 
privately^wneii v Cairiffiar ' in- 
dustry: may itself neeS ovt the 
longer terin remains tirbeeem 
Manageri of -the privately cmed 
companies are well awarrtbat 
-aboat thxeMtuarters of tl_ in- 
dustrial - world’s - steel-’priuc- 
tion is in government -ham. — 
and tfiart govemhienf options 
? can be subsidised 1 !!* nufpy/ays 
to provide ’ • . lowejr^qed 
products.. -'// 

: ^Thoe. is a.m^ebstnism tpro- 
vide for ^unter-vailing^ties 
on ; products..'. : directly or 
indirectly subsidrsed, blit !has 
not "been appfied do steeim- 
portMuto Canada. The iiyntry ( 
hopes that one putdozbe lathe t 
GA3T -talks will be j 

governing such arcmfastars. i 

, ; ^ Timothy Fritdrd i r 


in starting to beat a little 
stronger tit is year. For five 
years, the province of Ontario, 
traditionally the leader in the 
Canadian economy, has failed to 
keep pace with the rest of the 
nation's performance. 

Soaring wages and lagging 
productivity have weakened its 
industries. Its energy bill escal- 
ates as Canadian policy steadily 
adjusts prices to world levels. 
Where it was once the favoured - 
destination of foreign industrial- 
ists looking for a plant site in 
Canada, visiting delegations 
now head to Alberta and Ontario 
finds it must spend millions of 
dollars in bidding ways to at- 
tract industry. "Where its trea- 
surer was once able to provide 
the richest package of govern- 
ment services in Canada and to 
huild a multi-million dollar 
playground on the shore of Lake 
Ontario for a generation that 
was making Toronto the most 
talked about city on the Contin- 
ent. his successor manfully 
struggles to hold down provin- 
cial deficits without cutting ser- 
vices drastically. 

In short, Ontario exemplifies 
die problems that have come tn 
plague the Canadian economy 
in the late 1970s. If it is where 
most of the opportunities once 
werei it is where many of the 
problems now are. 

There are signs of recovery. 
For the first time since 1972. 
Ontario’s growth this year will 
actually be higher than the 
national average and the per- 
formance will be repeated In 
1979. according to the Confer- 
ence Board in Canada, a, pri- 
vate research foundation. It 
estimates that Ontario’s econ- 
omy is growing hy 3.6 per cent 
this year, compared with 3,3 
per pc lit national growth, and 
that next year it will grow by 

3.9 per cent, compared with 3.5 of Michigan and Ohioi 
per cent national growth. But U.S. industrial, heart land.' “■S’r . 

the provkice is not yet out of a 'lot of industries, Ontario stH % . •’ 

the woods. Unemployment is maintains- a competitive ativai- 

steadily -increasing. — from 7 per lage,” : one official- notes: Hb 

cent last year to 7.3 per cent list of pluses for the provino - - 

this- year and SJJ per cent is ex- ; Includes access to the riel 

pected next year. markets ; oF central - easten 

While the province is. in North Ameiiei,..- a number o', 
a stronger position to take advantages ^ with, ^rrergy r sup . 
advantage of an international ’P^ jes ' .partitiularly.relectricity^a 1 
economic recovery than it w'as stable anti well-trained labour .ft-, 
a few years ago, slow growth a . quality of life ^f*f Py-t j 

in. the U.S. in 1979 and the. that is attractive in compan son 
uncertain pace of. recovery -in. -wilb- nearby .U.S. cities, such as 
other industrialised nations Cleveland and Detroit, 
mean that Ontario's goods-pro- is not the goods-produdog 
duemg industries will . probably mdustnesrthat led- the-recoyery • ^ :- 

have to -wait until 1980 before *** Ontetno this ye4r. Service . ‘. - 

showing a - strong performance, sectors were;- growl ng in the 3,6 - 

Provincial economic planners t° 5^ per cent range with the _ ‘ 

concede that a'number of events exception of public administra- 

couid upset their hop^. tion, while the gdods-producing , 

Canada.’s ' infiatitra performance sector... jtew . by ...less .than . 

will:" be crucial.. If a poor Jn ^tiqnal i ayerajse : 

inflation record triggers a round A Jcey recbnomistvln: the . pro- •• 
of exorbitant wage settlements vindal Goverhiheht however, ; 

that push up costs, the recovery thinks that' the’ basic economic ' v • 

In the province's co rapetitivie .situation lit- Canada Js re hi rni ng ' ’ ■■ 

position that has come with the : to. -the conditionB that prevailed " - r. 1 

devaluation of the Canadian before 1 , ^970’ whej)C :Qhtaxi o, and ' 

dollar could be lost quickly.. . Quebec were the economic . - • 

■Furthermore, some industries leadersrin the country. He sfiy 8 * .-•« 
in .the province are faced with 1 that what.happenedin the efarly 

much higher relative energy 33TQs wa& that the ^ appfedation . . 

costs than they, were in of the Canattian.dollaraAd the ’ •■_*•' ■ 

1960s, particularly the petrn- resource bo pm-- that,-.accom-. - .v« 

chemical industry . that- uses , flaoled.-the. exceptional rat^-, of ' ' • i ;■ 
Alberta-produced crude. Wand woTrdwide.grovidh.;iiL the early /.'J . .. 
natural gas for both fixeLaud pro vj ded .opportnuities-f or ; 

feedstocks. . HowjB ver,. 4t t "irepi.endous growth, of', the.-, re- ■: . ; ^* t: . 

certain that the competitive source sector of the" Canadian r >..V, 

edge . that the industry dhee economy- WhileVOutario beae- y ' r Y . . 

enjoyed. has toialjy^lost flted from this TnibmV jt!di4‘ net YrY' ) tYY 

While the, petrochemical' ifldns-' share iri the beflefitsto the same - 
try tiow building up -‘in Alberta - degree because ■ ~ rerogree ‘ r. -■ : • ■* ^ 

has. the edge' over Ontario -on' sectar^ is relativeiy ^ieaksng^ a' .' '' 
feedstock , supplies, : Qntarift much irhaUer-port^n of the pjtf- ^ T -'T ’,” 
plants are in a better -position . vincial. economy- tfedn. -it' : 
tn.. -serve- large marketsboth':. say,- Brih'sh. Columbia.' -':At ift& Y/’-, - : 
domestically ;-and ip the.; U t S..- same, Jime,; the hoqm Sod tfee u '■■•;■• ‘ * 
They; .ire . Inca Led just, across inflation that went with-it put a . s ^ 
the. border from the key stales.: great deal of piesstirei-qh w^e 
. continued on'next>Age : ''> r 

ULTRAMAR is an international, integrated oil 
company with major investments in every sector of 
the Canadian oil industry from the exploration for new 
sources of energy to the retailing of gasoline at the 

* exploration for oil, natural gas and uranium 
throughout Canada 

* production of oil and natural gas in the Western 

* marketing a full range of petroleum products in 
Eastern Canada under the GOLDEN EAGLE, 
ULTRAMAR and ARROW brand names. 

Canadian offices: 

Golden Eagle Canada Limited, 

1 155 Dorchester Blvd. West. Montreal. RG. 

93 Elizabeth Avenue, St John's, Newfoundland 

Ultramar Ontario Limited, 

Arrow Petroleums Limited, 

50/52 Ashwairen Road, Dovvnsview, Ontario, 

Golden Eagle Oil & Gas Limited, 

Suite 2600, 400 4ih Avenue SW, Calgary, Alberta. 


Ultramar Company Limited, 2 Broad Street Place, London EC2M 7EP 


i 1 \ 



hi 1978 

'K- : '' : ?2!!:; ; ":' :K ” :t -IflciNADA ' rx 



in the Prairies 


In the next year-with 
Government restraints still in 
force — Manitoba's economic 
progress is likely to be minimal. 

!■ “ 

! 7 

ness-orientated Conserva- 


THERE ARE lilcely. to be vast.. province’s labour force has 
. differences in the economic swelled by 10,000 to 443,000 In 
. attainments. <of Manitoba and the past year, the evidence is 
-■ Saskatchewan over the next 12 that the Lyon Government is 
_jm<»nth6. . falling to create enodBh-Jobs for 

Normally thc fortunes of Manitoba citieons, if; 85,000 are Economists here are predicting 
= these two prairie provihera run currently unemployed here. a moderate Improvement In the 
along fairly parallel lines* as Traditionally - Bkahltobans province's growth rate, saying 
both' depend on agriculture for have expressed thetf dlssatisfac- it will be likely to reach 2.3 per 
i a large pan of their well-being, tion with the province's eco- cent as compared with 2 per 
; But as 1870 looms Saskatchewan nomic conditions by ” voting cent in 1978. But this will still 
i is still swimming along on a with their f re t simply rank as the smallest Increase in 
; ware of moderate prospcrily mnanii that they more to. other Canada — and will be less than 
while Manitoba is xtruggl itiq areas. This seems fti be happen- the national growth rate — 
> with real: 'difficulties, as it- trios j 0 g again, as the province's net forecast at 3 Id 4 per cent. 
| to foster . employment - and i oss 0 f population:*- through Furthermore, the same 
] industrial ^Jtpansloh. migration doubled In “the first economists feel that Manitoba’s 

Saskatchewan is to some hHlf of 1978 (3,198 this year unemployment rate will 
degree better off because of the against L508 last ywrf). continue to hover around the 

accelerating , world demand for the n'nvuudt] Govern- Present 7.3 per cent throughout 

its oil potash and uranium, menl's standpoint tmt-migration 19 ' 9 * . . 

Manitoba, on fl» Ollier hand, brings temporaiy -relief, since Spokesmen for the Lyon 
lacks these buoyant resource Manitoba's unemployed imrnc- Government, however, continue 
industries and its own hydro ^lately become "the rosponsi- tQ insist that the province is on 
and mining sectors are in a bllity of some other: jurisdic- verge of attracting large 
shanp. • Uon> But ^ ^ ^ ^ sums of private capital. 

But even more important, the 0 f population could “ Eight years of socialism in 

lW ii Preylncea have recently seriously harm M ft iypn's plan Manitoba tried the patience of 
spfit- off on widely ' divergent to attract new bti&inesB and the business community here,” 
paipa as farM growth strategies industry to the province- says Mr. J. Frank Johnston, the 

are concerned. For example. Statistics Canada, the federal Cabinet Minister in charge of 
tcbew&n residents this GovcrnmenPa statistical agency, the province’s newly established 
ber opted to retain a high bas forecast that- if present Ministry of Economic Develop- 
1 of Government involve- trends continue, - Manitoba’s nient “But we now have the 
t in their province’s population will shrink from a opportunity of making up for 
omy when they re-elected pea fc 0 f i,Q 21,5M la • 1976 to some lost time and lost 
; Prmiier Allan Blakeney’s New about 965,000 by the tiim of the opportunities.'’ 

JJeiocratic (Socialist) ^dm ini- century. A contracting market . 

:i strtion for a. third consecutive like will not be. .of much Agreement 
2J- Mamlobans, m contrast interest to outside., entrepre- 
- disiensed with an eight-year-old . neurs - 

SnSlSStt'' Uxiu! conseivitlye* m turn- V l.w, S5Sver° oSw. to 
yep ago *n<| replaced it with jng Manitoba into .the Now- be ttB most jucely source of any 
sterling Lyons fpundland of Western Canada, n ew capital that may be poured 
bringing us economic, stagna- j nt0 Manitoba in 1979. Within 
tion, unacceptably high unem- the past few months the federal 
ployment and Iow lncom^.^ Government and tho province 

Leo nard Evans, former.. NDP have signed a regional economic 

V ' ak » „ rt « Industry Minister fthd now to expansion agreement that is 

• J : h t °PPOSition backbencher,., has supposed to provide $40m for a 
‘ ^argedrec^ltly. “After ayear variety «£ development 

SfjSSSF °* Tor7 ^overmneiit, It is projects. At the moment 
' Wliibl S! ******* dear that Pgvate officials of the two Governments 

gators are not being attracted are negotiating the specific 
•-fSBf ^ detaUs of projects that could 

' ' SSST’hS !.r Despite -opposition jftcessure^ create 4.000 new permanent 

i '*** depr«smg ecooaimc.f^atis-. jobs ih the agricultural and 

•owth in the province. • tics, Mr. Lyon has no jAtentiofi touriat sectors in the next five 

the other side of the coin, 

j-Laii.i»aiw»' "sa •“hK 

their first year in office the gramme format least another 5JJS5L 21-itnvV* SIf 

• ! mwemti v* trimmed me pro* JS* aithoiigh he Ms held out ^Sv 

i facial civil service by 1,800 • gome hope- that further tax cuts- JJ Iin f tn hI e wIi«, 4 thl»^I!Sn«i 
T-^ople. shahed- hospital and will be made next spring In ' S c b ^r ”tiuS P S^foSrt 
..miversity budgets, halted aU effort to stimulate private ■ JgE JE’SL 'R n° er b SS 
public building and pm e hold bu^s. v . 255 m™5TJS Z 

faSrTfhatSe MvfiuiMx Lvon another 15 per cent later in 
SS 1079 ‘ ^ certainly be a 

i.oba, however, has remained S>lete economic bleakness. ^U^^^irwJiSsK 

idmost static in the past year, one is that the province* P ^ 

SSSin d ■'JS* d^rioroted to the 

^rporate and personal income" Se othe^ is °that Manitoba's ^SShJjJUS^ sS'lmSln^me 
; axes by two percentage points.- manufacturing industries ate ae ^ set 1 t e 

Hti addition, with few. major maintaining satisfactory produc- 
orlvate projects in the planning -tjoh by serving the lucrative- Saskatchewan citizens, mean- 
stages, the province has been nearby markets of Saskatchewan While, seem fairly pleased with 
Jgrappting in recent months with' and Alberta, • their present lot They 

iesealAtlng rates of unemploy- Farmers are benefiting from dem&nfitrated this several weeks 
'meat and outward migrations ; high Beef and. pork prices, Uv-'ifo reflected Mr. 

? Statistically Manitoba’s actual wall as from opportunities to : Blakeley's incumbent New 
^unemployment rate rose 30 per deliver most of their grain at-..Dwnw»« hy a mounding 
,' cent between September 1977 fairly good prices. Because of I ® ar Sin. This time they give 
t and September 1S7R by far the the- buoyancy of the agricultural . -the NDP 44 of the legislature 4 
& highest Increase in any Ganadian and manufacturing sectore- 81 seals and a waopping 47.5 
^province. At the Jast count. 7;3 Manitoba’s ' goods-prodUdng. -per cent of the -popular vote, 
•^per cent of Manitoba workers .industries should grow by 4JS-. compared with 39 seats and 40 
3. wore looking for Jobs, as com?- per cent this year, although the per cent in 1975. 

3; pared with: 5.9- P®F cent. 18 gains will be. partly offset jby. • Saskatchewan has, or course, 
i? months ago And while the weaknesses in mining and had a strong Socialist party for 


5k s - . ‘ . : 

£ . ........ ... . 

’a -■ 

building and put 
i n northern Manitoba’s billion- 
I *oilar Nelson hydro project. 

= > Private investment in Mani- &T^n havitig to deal with 

four decades, while Manitoba 
has stuck with free enterprise 
parties except for the 1969 and 
1973 flings w-tth the New Demo- 
crats. But the difference In 
political traditions does not 
completely explain Mr. Blake-! 
ney's most recent triumph — as 
economic factors were Just as 
important in the final analysis. 

For example, Saskatchewan 
currently has the lowest unem- 
ployment rate in Canada— 4.9 
pnr cent versus 8.5 per cent for 
the nation as a whole. And 
while this figure is expected to 
rise marginally tn an average of 
5 per cent in 1979, Saskatchewan 
has enough new development 
undar way for nobody to be 
especially worried. 

In the oil indtstiy, fofj 
instance, Sastarti the province's; 
oU company, is going to team 
up with Gulf Oil Canada and | 
Pctro -Canada to develop heavy 
oil deposits on 400,000 acres of 
Crown land over the next eight | 
years. Similarly, Husky Oil of 
Calgary is planning to spend 
$2bn to develop its heavy oil 
fields on tile Saskatchewan- 
Alberta border. Part of this 
scheme calls for the construction 
of a multi-million dollar refining 
plant in Saskatchewan. 

In addition, a number of the 
province’s dozen potash mines 
are planning expansion, while 
Amok has plans for the world’s 
richest uranium mine in 
northern Saskatchewan. The 
uranium boom is dealt with in 
a mining article of this survey. 
Regina, the province's capital, is 
to be the site of a $100m down- 
town redevelopment and one Of 
its principal industries. Inter* 
provincial Steel and Pipe Corp., 
which builds pipe for northern 
pipeline projects, has announced 
an expansion that wfll create 
400 Jabs. 

These developments, as well 
as a fairly healthy farm sector, 
are creating a general feeling nf 
well-being In Saskatchewan. And 
although the province is less 
prosperous than it was in the 
grain boom days Of the early 
1970s, Saskatchewan residents 
are confident that their abund- 
ant natural resources wai fuel 
the provincial economy for 
several decades ahead. Id fact, 
provincial officials expect 
real growth in Saskatchewan’s 
output will reach at least 3 per 
cent in 1979, with all basic and 
service industries sharing in the 

The one key policy difference 
between Manitoba and Saskat- 
chewan is that in the latter 
province the provincial Govern- 
ment is sharing the financing 
and the fruits of development. 
Mr. BUkeney's Government has 
bought potash mines, .estab- 
lished its own oil company and 
passed a law that gives its min- 
ing company the right to buy up 
half of any project that looks 
attractive. Although this policy 
may be distasteful to business- 
men, Saskatchewan Government 
involvement in the economy is 
likely to increase in future, now 
that Mr, Blakeney has been 
returned with a stronger 

Roger Newman 


rales In all Canadian Industry 
and OhferioV manufacturing 
found itself Id a deteriorating 
mteroatidnal competitive posi- 
tion. . 

ThOh the bubble burst The 
commodity boom came to an 
end. Industrial growth around 
the world slackened. Suddenly, 
it was apparent that Canada had 
a highly overvalued currency . 
A 18 per cent df°b of the ex- 
change rate with the UJS. dollar 
and a moderation of wage d&- 
' minds caused the .economic 
; balance in the country to return 
w a pro-1970 situation. That 
suggests that Ontario is in a 
good position to recover its 
place at the head of the pack. - 

Even, on the wage bill, sim- 
plistic comparison between: 
base' wage rates, in Canada and 
. the u.S. can be somewhat mid- 
leading as nob-wage costs in the 
U.s. are generally higher than 
ntHPwage costs In Canada. 
Ontario officials- like to point 
out that, in comparison with 
the adjacent industrial states of 
the U.S., New York,. Ohio and. 
Michigan, the province per- 
formed substantially better in 
*th$ctt&g new industrial invest- 
ment during the 1970s and in 
dealing manufacturing employ- 
ment The late 1070$ present a 
W"«t of chfcBeng&s: those 
have h«n stung , by a 

movement of industry south- 
wards in the U.S. and bavte 
begun to fight back by offering 
a wide variety of inducements 
for industry to locate in them. 

Ontario must now get into the 
bidding war with states such as 
Ohio or Michigan. And that 
means in many oases cash, no 
. matter how it is disguised as a 
grant, industrial development 
Incentive," or whatever. Even 
in the / negotiations leading up 
to the choice of an Ontario site 
for a new Foyd plant, while it 
was recognised that there were" 
substantial advantages to build- 
ing the plant in Ontario, it took 
money to etinch the deal. 

• The province Will probably be 
faced with more oT.the same if 
it is to attract the sort of in- 
dustrial investment that it used 
to take almost as h natural right. 

The Ontario Government is 
faced with the Job of convincing 
businessmen that . it still de- 
serves the unquestioning sup- 
port that It once received from- 
them- This summer, the 
minister who had the widest re-, the provincial business' 
‘community, the. Provincial 
Treasurer, Mr, Darcy McKeough, 
retired from politics, and the 
industry Minister, the late Mr. 
John Rhodes, who. was just bfr- 
ginning . to bolster business 
support for the Government, 

idled while in a trip to Iran 
“With the Provincial Premier, 
■:Mr. William Davis. 

V- Their replacements have yet 
to make a similar impact Mr. 
; Frank Miller, the provincial 
measurer, has not demonstrated 
that he has the toughness to 
xam unpopular budget cuts 
through cabinet in the manner 
of the abrasive and autocratic 
Mr. McKeough. And Mr. Rhodes 
-replacement as Industry Min- 
ister, Mr. Larry Grossman, 
while .young and energetic, is 
- still relatively untried. 

-Mr, McKeough left the pro* 
vlntial Government because he 
had tired of waiting for Mr. 
';Davis to- quit, even though he 
lad been able to lead bis Pro- 
gressive Conservative Govern- 
ment to no more than- minority 
victories in the Z975 and 1977 
elections. While his Govem- 
~me&t is in minority, position in 
-the provincial legislature, it 
does not seem that Ontario will 
soon have a provincial election. 
The "current speculation is that, 
at the very least* it will have 
to wait for national election to 
.settle the fate of Mr. Pierre 
Trudean'fi unpopular federal 
Liberal Government Ontario’s 
provincial liberals regained the 
. position of the official opposi- 
tion in the last provincial elec- 
tion after they had lost it te the 

socialist New Democratic Party 
in the previous round. 

Dr. Stewart Smith, the 
Liberal leader, would not wish 
to force a provincial election 
prior to the national One as the 
unpopularity of the federal 
Liberal Party could destroy his 
cnences In a provincial fight. 
Ironically for the Liberals, a 
defeat for Mr. Trudeau could 
make it easier for Dr. Smith to 
be a victor. Similarly, the New 
Democratic Party is unlikely to 
force an early election. Its 
leader. Mr, Michael Cassidy, has 
not established a presence on 
the provincial stage comparable 
with that of his eloquent and 
fiery predecessor, Mr. Stephen 

So, for the nonce, Mr. Davis 
seems set to stay in offlre, even 
though be has never established 
the forceful presence that his 
predecessor. Mr. John Hobarti 
did. Mr. Robarts was always at 
the centre of national debate 
in Canada, but new the pro- 
vincial premiers who are lead- 
ing the debate are those or 
British Columbia, Alberta and 
Saskatchewan. In this case, the 
swing of political power has 
followed the changes in the 
economic balance within 
Canada In this decade. 

Jim Rusk 

Solve this 


Creative problem-solving. That's the 
bankers art, as practiced at Toronto 

To show you what we mean, we've 
arranged coins from 10 of the countries in 
which Toronto Dominion does business 
in the form of a lop-sided cross. 

The challenge is to create a symmet- 
rical cross, containing six coins in each row 
—by moving only two of the coins. j^jja network of more than 1000 branches. 

Having difficulty? Then free yourself ' offices and affiliates, 

from all self-imagined restrictions. Once you do, Toronto Dominion. We have a proud record 

voila! The solution is immediately evident. of partnership with corporations, banks and 

All you have to do is shift the coin from the governments around the world, 
bottom of the vertical line to the position on top A record characterized by the creative 

of the centre coin, and move the right-hand coin problem-solving abilities that make banking 
in the horizontal line to the left-hand side. an art. 

It's this type of ingenuity and creative 
problem-solving .that Toronto Dominion 
bankers apply to all their dealings. Whether 
it's routine corporate financial needs, large 
scale project financing or the formation of a 
management group, we help to make the 
difficult seem easy. 

Today, Toronto Dominion has world- 
wide assets of over CAN 5*23 billion, and a global 

EfT] Toronto Domin io 


where people make the difference 

Head Office— ^ Toronto-Dominron Centre. Toronto, Canada M5K 142 
Regional Office— Europe. Middle East and Amt a: Su Helen •>, I Undervhait, London, 

London * Frankfurt Abu Dhabi * Dubai • Beirut ' ■ Tehran * Singapore * Hong Kong ■ Jakarta • Bangkok • Taipei 
Tokyo ■ Mexico * Panama - San Paub * New York ■ Pittsburgh • Chicago • San Francisco • Los Angeles • Houston 

Canada’s growing free-enterprise 

Strong, Expanding Economy 

The per capita Gross Domestic Product of Alberta 
is the highest in Canada — $1 1 ,230 in 1977. 

Alberta is destined to play an ever more 
Significant rale in the Canadian economy. 

Good Investment Climate 

Alberta continues to enjoy a stable political 
and social climate. The province's 
labour relations have traditionally 
been excellent These fa cto r s have 
helped attract new commercial 
and Industrial developments to 
the province. Investment 
intentions tor 1978 were 
estimated to be 89.7 billion, up 
more than 11% from 1977. jj- 

Energy Rich ^ 

Alberta possesses abundant 
supplies of conventional oil an 
gas reserves, coal and 
hydro-electric power. In 
addition, the province has the 
Alberta Oil Sands — estimated 
to contain ultimate recoverable 
reserves of 200 billion barrels of 
synthetic crude oil (32 billion 
cubic metres). 

Diversified Economic Base 

As well as a strong oil and gas Industry, 

Alberta has growing manufacturing, 
agricultural and petrochemical sectors 
which will attract additional industries to 
the province. 

Due to begin operations, On schedule, to 
the summer of 1979, is a $1.5 billion 
ethylene-based petrochemical complex. 

The $10 billkm northern pipeline project 
to cany Alaskan natural gas to the 
American mainland will have a 
tremendous impact on the economies of 
Alberta and the rest of Canada. 

Joint Ventures Welcomed 

. With so many developments currently underway and with 
many more projects planned, huge amounts of capital are 
required. Joint ventures and licensing arrangements 
between non-Canadian investors and Albertan and 
Canadian partners are welcomed by Alberta. The province 
welcomes foreign Investment, particularly in the areas of 
food processing, petrochemicals, manufacturing, steel 
and minerals, end forest products. 

Low Tax Rate 

The overall taxation rate Jn Alberto Is tfts 
lowest in Canada, 


To team more about investment appcm/niUoa- 
offered by Alberta, please contact 
Alberta Hauaa, 
37 KKI Street. 
Phone: AC 01-499-3081 Totes: SI -23461 
14th Floor, Capttof Square, 
10065 Jasper Avenue, 
Phone: (4C3) 427-2297 Teles: 037-3GS1 


Financial Times . Tuesday December ^ 


International Investment Bankers 

51 Bishopsgnfc. London EC2P2AA 
Telephone: 01-638 0701.Teles 889342 

Representative office in Canada 
Commerce Court West. Toronto, Ontario M5L IA2 . 
Telephone: .(416) 862 4561. Teles 065-24116 

Managing Director 
T. A J. Boyce 

Associate Directors 
WIT. Hodgson, R. P. Mountford 

Syndication Manager 
J. W. Wentworth-Stanley 

Representative in Canada 
C. G. Osier 

Sharcholdaa: Canadian IctceriiLBink o: Camnwa: (Fl^ Hambrof Limited (49‘J. 

Hie Financial Pest 
offers you 

1/145 th of Canada 

Impressed? You should be. 1/145th of 
Canada actually represents the 
greatest national penetration of any 
■business publication in the western 

Jt means 7 out of every 145 
Canadians buys and reads The 
Financial Post 

The two other publications that 
rank as our nearest Canadian 
competitors are bought and read by 
onlyl out of every 336 and 1 out of 
every 444 Canadians. 

And here'showwecompare 
against the major U.S. and European 
business publications: 

1 out of every 149 Americans buys 
and reads The Wall-Street Journal. 

1 out of every 207 Germans buys 
and reads the Frankfurter Allgemeine 

1 out of every 313 Britons buys and 
reads The Financial Times. 

1 out of every 440 Frenchmen buys 
and reads Le Nouvel Economiste. 

Besides offering you the largest 
slice of a national market in the 
western world,The Financial Post 
provides a superior editorial 
environment that's just right for all 
kinds of campaigns aimed at 
Canada's decision-makers. Corporate 
communication campaigns, financial 
relations campaigns, capital goods 
campaigns, government relations 
campaigns, upscale consumer goods 
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campaigns, travel campaigns, liquor 
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So if you have Canadian interests or 
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For further information , please contact: 

G. M. James, 30 Old Burlington Street, London W1X 2AE. 01 -437-0644. 

Tlje Financial Post 



A new 

Atlantic Provinces are ridding 
themselves -of a couple of 
unwanted, industrial albatrosses. 
But the Bluebird, of long term, 
economic happiness will con* 
fume to elude them. 

The two encumbrances are 
both iu Newfoundland, the bank- 
rupt 100,000 b/d, Came-By-Day 
oil refinery, and the provincially 
owned, 3,000 ton a day, Labrador 
Linerboard mill at Stephen ville, 
which has been closed for finan- 
cial and marketing reasons for 
more than a year. . 

Both could soon have new 
owners. Their takeover and 
probable reactivation is indica- 
tive of a resurgence of economic 
confidence in the region, based 
principally on external factors. 

Because of this economic im- 
provement, Government leaders 
in three of the four provinces 
might be forgiven for asking 
why they did badly in recent 
provincial general elections. The 
Liberals lost power in Nova 
Scotia to the Progressive Con- 
servatives. and the Government 
in New Brunswick and Prince 
Edward Island held on to office 
by a whisker. As a result, New- 
foundland's Conservative 

Premier, Mr. Frank Moores, who 
is expected to go to the people 
some time next year, may have 
cause for apprehension. 


In addition to a widespread 
dissatisfaction with established 
governments all over Canada, a 
new element has emerged to 
complicate Mr. Moore's potential 
problems. A recent national by- 
election was won there by a 
youthful member of the New 
Democratic Party. It was the 
first Lime that the mildly social- 
ist NDP had made any impres- 
sion on the Newfoundland 
electoral scene. The result may 
merely have been an aberration, 
but it may also have been the 
first expression of what could 
be growing ' public reaction 
against Newfoundland's chronic 
level of unemployment and high 
living costs. 

Officially, Newfoundland's un- 
employment rate was stated in 
October to be 16.9 per cent But 
a low worker participation rate , 
and otherwise disguised unem- 
ployment means that the reality 
of the problem was understated. 

Northern New Brunswick and 
Nova Scotia Gape Breton Island 
share a similar magnitude of un- 
ployment but despite this, the 
region has been making econo- 
mic headway. The three main- 
land Maritime provinces will be 
among the top. five in Canada 
this year in terms of overall 
growth performance. Increases 
of between 3.5 and 4 per cent 
should raise them slightly above 
the national average. Newfound- 
land would have shared in this 
performance but for a prolonged 
strike this summer in the Labra- 
dor iron mines. They account 
for about three-quarters rf 
Newfoundland's C$850m annual 
mineral iutput The loss nf 
much of that production means 
that the province tfill be lucky 
to reach 1 per cent growth this 

The beneficial effect on ex- 
ports of a falling exchange rate 
has most to do with the region's 
general economic improvement, 
pulling it out of a shallow re- 
cessionary curve begun in the 
aftermath of the world oil 
crisis five years ago. 

In Nova Scotia, such commodi- 
ties as fish and coal showed 
production increases of more 
than 40 per cent during the 
early months of the year. Eregi 
the long-depressed, provincialiy- 
nvvned steel industry, has taken 

on a more cheerful countenance, 
hiring new workers and plan- 
ning to recommission another 
blast-furnace to service sever iI 
new long-term home and export 

With heavy accumulated 
losses and the need for a major 
capital investment programme 
Sydney Steel is a long way 
from being out of the woods. 
But the industry's future now 
seems somewhat more assured. 
Saies of rails to South America 
and several African nations and 
shipments of basic steel to 
South Korea helped to boost 
Nova Scotia's external exports 
by 27.5 per cent during the 
year, a rate roughly twice the 
Canadian average. The Nova 
Scotia Government is looking 
for funds to modernise Sydney 
Steel, but has given up the 
idea of setting up a 4m tons a 
year export-oriented steel plant 
on the coastal Gabarus Bay. 

Pulp and paper mills have 
been fully extended to keep up 
with demand. This explains why 
five potential buyers expressed 
interest in the five-year-old 
Labrador linerboard mill. When 
it closed 14 months ago. New- 
foundland would have parted 
with it for a song to maintain 
direct and indirect employment 
for 1,800 people, despite having 
spent more than C$250m on the 

The successful bidder was 
Abillbi Paper, of Toronto. The 
Government’s terms were 

tougher than a year ago,, but for the 'proposal, but he is under 
C$43-5m Abitibi got a bargain, strong .pressure to prefer the 
In addition it faces expenditures Shaheen bid which promised an 

of G$60ra to convert the five- 
year-old plant from linerboard 
fa newsprint production. Only 
by doing this can Abitibi expect 
to overcome the inherent prob- 


turning point after what has 
been a long period of stagnation, ■■ 
current economic’ improvements • 
iu the regiap may be short lived. - 
The prospect of- what seems to - 
be: another, sharp increase of' 
international oilprices, renewed 1 
misgivings about 'the state of 
the U.S. economy in^l979, and.' 
a consequent falling - off -Of .. 
demand for' resource products, - 
suggests that a tough year may - 
lie ahead. 

At the region's, present rate 
of economic development, .-the* . 
.Atlantic Provinces Economic' , 
Council believes it will take' the. 

immediate C$5 nt payment to 
local,': creditors, and long-term 
pay-out from earnings for -every- 
one:; ;• 

, , ... A . Tht decision rests bn the piro- 

lerns of a mill without assured , vihce*s ' view of Mr. Shaheeris 
supplies of economic wood and -firvanHu p and operating' 
dependent on a single, volatile credibility. ' 

_ jrhe ultimate fate of . the re- 
finery. also depends to a con- 
siderable extent on whether the 

Solving the Come-By-Chanca--; S’T" 1h ZS at7 C SS^. 

oil refinery problem is going petroleum products. - r ~- : — T"> 

to be more difficult, despite the Presi ? ent , Ck**** recent «m-, four provinces 100 years merely v 
fact that the receiver has tenta- ' t ! ie U -S* dollar susses 

tively accepted a C$2l9m offer 'Ssdt^his -is not likeiy. 
for the plant from First Arabian . : While the ravages of a de» 

of Luxembourg. The. receiver, foliating month larva, known «s 

the. Spruce Bud worm cast con- 
siderable uncertainty over file - . 

long-term economic future of province that has:done;ma?t iu 
the;, forest industry, in the the. past couple of yeattfir act 

Atlantic provinces, .lumber pro-, on such advice. : 

to be completed next April, but ,’3ucers. like the palp and paper tural PEL Tt hasj^rag^d -35 
it uill depend o n whether the - industry, are enjoying an up-, compames^ to TWo.-to^strial 
Newfoundland Government surge of demand. A.stroBger -parks. Most -are tram • Brrtata orL, 
owed C$65m on a second totals market has renewed elsewhere . ly Europ e, . gel ling a. 

mortgage, agrees. talk, of an expansion in New foot in the North Ame rican m ar *. 

Under the proposal made fey - . Bnmswiek s big lead-zinc mining 
First Arabian, both the province ''industry. 

and a group of British banks -. Optimism In the Atlantic fish- 
led by Kleinwort Benson, which' toff Industry is limited only by 
hold a C$109m first mortgage, the extent to which federal 

controls still limit the size of 
the . catch and the method of 
operation. The industry is dis- 
cussed in detail elsewhere in 

rejected a C$6 13m bid from Mr. 
John Sbaheen, the New York 
industrialist, who originally 
built the refinery. 

The sale to First Arabian is 


to catch-- up' with : the -rest : of f 
Canada. . . Ly.;:.: 

..- The council urges file., region 
to look to ways . of producing ■ J 
high value, well designed, Jflgh 
technology good*. Innddaljy,vtoe 

would get paid. But little or 
nothing" would be available to 
unsecured creditors over about 

Mr. Moores, the Premier, says 
he is keeping an open mind oh 

While 1978 certainly marks a 

ket - with the assistance b£ ;; art> 
extremely generbus feaeral-prp- - 
vincMl incentive package. . . The 7, 
newcomers . .represent , a, eom-V 
birred inve^tmeztt qf. ^aboutV- 
C$22m, account for- aberat S5G •. 
new -jobs, and . prp«dm»-«TCry< 
thing from laser' ineasuHiriff*" 
machines to. . low .pressure ': 

. a luminium rais frngs. • .... 

" • Lyadofl 



THE CANADIAN north causes 
many- misconceptions. Euro- 
peans generally see it as snow- 
bound, rich in minerals, and 
populated by Eskimos in igloos. 
Canadians often entertain 
similar impressions of untapped 
wealth. Most of them will never 
travel there (too far. too expen- 
sive), and many view it as a 
wasteland of no relevance to 
daily life. Neither generalisa- 
tion is accurate. 

At the heart of any discus- 
sion on the north, there is the 
problem of communications. 
Expensive transport and travel 
hinders projects. The distance 
between communities makes 
administration difficult Lack of 
contact creates contradictions 
and political conflicts. 

The north is diverse and fas- 
cinating. In some ways it Is a 
model of model Canadian his- 
tory. One secs the arrival of 
white men, the difficulties and 
high cost of development, tech- 
nology creating new issues and 
forcing Governments to deal 
with political problems brought 
in the wake of progress. In the 
background there lies the con- 
flict between the views of local 
people of what is best for them 
and the ideas of a distant central 
Government, in Ottawa. It con- 
sists of the Yukon and the 
North West Territories (NWT), 
each governed by a commis- 
sioner appointed by Ottawa, 
assisted by an elective council. 
The population is thin even by 
Canadian standards — 21,000 
people on the 207,000 sq miles 
of the Yukon. 3,000 on the 1.3m 
sq miles of the NWT. Another 
11,000 live in northern Quebec. 


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There is nothing romantic 
about being an Inuit fas 
Eskimos prefer to be known). 
Many older people can still cut 
and build an igloo in a few 
hours, but nowadays igloos are 
temporary camps for hunters. 
Semi-nomadic hunters still exist 
but as a rule an Eskimo family 
lives in anything from a state- 
built modern home to a shade. 
In a large town like Inuvik a 
fortunate Inuit will be linked at 
home to a large square elevated 
pipeline which carries ail the 
services (water, steam heat, 
electricity) necessary to survive 
in the winter cold. TV pro- 
grammes arrive by satellite. An 
hour aoth on the Arctic Coast 
in Tuktoyuktu. an Inuit home 
is a fuggy shack with insulation 
of questionable quality. 

There is little work for those 
who arrive at the settlements. 
The Mackenzie Valley, the huge 
river system which flows to the 
Arctic Ocean from the prairies. 

its posts throughout the north 
and the Inuit became dependent 
on the southern fur market 
The great shock for the visi- 
tor meeting Inuit and Indians - 
in Quebec, the NWT and Yukon 
is that these people live so 
close to despair. Alcoholism is 
rife. (It is among whites also). 
Natives purchase booze as a 
privilege not as of right They 
need a special card which can 
be taken away, a reminder of 
the inherited British colonial 
paternalism. Suicide is com- 

The 20,000 Inuit are only one 
part of northern society. Whites 
and Indians account for the 
other 50,000 inhabitants of the 
Yukon. NWT and northern 
Quebec. The three groups have 
little contact with one another. 
Only in Inuvik. NWT, do 
whites, Indians and Inuit live 
in the same community. Else- 
where the Indians live south 
and the Inuit north of the tree 
line. All three societies have 
reasons for disillusion. 

Two decades ago Mr. John 
Diefenbaker, then Prime 
Minister of aCnada, saw the 
north as the area where the 
old Canadian pioneer spirit 
could revive. The assumption 
then was that white pioneers 
could develop the region with 
mines, factories and towns, 
helping themselves while pro- 
viding jobs for natives. Since 
then a massive influx to the 
north has provided health, wel- 
fare, education and jobs, but 
has brought as many problems 
as solutions. 

No one is certain that pro- 
viding employment and wages 
for native people is an answer. 
Starvation has disappeared, 
diseases are less common but 
Indians and Inuit are racked 
with social problems. 

When mines dose down com- 
munities break up overnight. 
Mineral deposits are not as rich 
as imagined and extraction 
depends on the ebb and flow of 
world prices. Copper, lead, zinc 
and asbestos mines in the 
Yukon have been going through 
bad years. Only gold has been 
boosted by rising world prices. 
Many people now ask whether 
native development is best 
served by exploiting non- 
renewable resources. That was 
implicit in the report of the 
Berger Commission which led 
to the abandonment of the 
Mackenzie Valley pipeline 
which would have brought 
Alaskan gas to the south. 

- -I'".*:' 

.'. '-'-'T.-V”- ’ 

even in good weather. The . Yukomono finds- metis who hid 
isolation of the islandebmmunif /.status and pure bloods Who re 
ties in the Arctic is/spich that non-status- This makes a gat . 
the regional admimstratorana; difference In privileges,, edua- 
the winter supply planes make tion ancT job opportunities, n ' 
their last run in early October . the far west most of the peope ' 
leaving the Inuit settlements of mixed.’ blood do not feel whe‘.| 
cut off totally until May. The . and many dislike -whites. - - 1 
entire Nortiris served by * host-. i n Reference of this Ottaw 

Of tiny private airlines. V They ' some years ago sorted fundi*- 

run out of money regularly hut 
serving as the -sole means of 
supply and health services they 
are not allowed to go udder. 
The same ancient twin Dakotas 
and smaller planes turn tip each 

research' by metis- association 
into possible me’ti claims -o 
lanffi v 

/ Land _ claims "are cuirentl . 
tiie single most pressing- issu 

___ ^ ... .. .in the north. There arW& noic ’ . 

year often ^ with newlivery. ; , /.her of elements involved^ Tecfc * 

Direct and indirect subsidies ndlqgy ^d changed ecohomifi L 
abound in all economic actrri.- . are, bringing fiie white economy- 
ties. There are no economies of deeper into . the north- Thi 
scale and everything has to be federal.. Government wants, h i . : 
airfreighted. (A pint of inilk minimise the . sociai and ecoho 
in the north can cost up_ to mic dimiption associated vtitlL? 
C$2.) Everything from craft new min^, pipelines and asstL 
shops to construction is subsi- ciated ‘projects. There is-_alsL 

the ,<f«sire : • that, ' the . uatiw-'.L: 
peoples should get 'a_ slice .Qi " 
toe cake and share in the bene. / 
fits. - It is more "efficient aht ? 
often less disruptive to hego - 
tiate .rather thaii- .leave dispute* 
to subsequent. co mt jrtions., Y " 
Such is the pressure to create In Quebec negotiations to“ " 
employment _that the federal enable the provhf^al -Govern- - ' 

dised somewhere. This year’s, 
budget of the North West Terri- 
tories was C$1 75m. Revenues' 
were C$30m. . • 


Government is willing to pro- 
vide complex infrastructure in 
the most isolated places to faci- 
litate new projects. Last year 
the Nanisivik lead-zinc mine on 
Baffin Island started produc- 
tion. Ottawa provided C$I8m 
for infrastructure in return for 
a company undertaking that 60 
per cent of file jobs would, go 
to northerners. 

A boost was given to oiT.and 

ment to develop, "the hydro? 
electric potential of the James 
Bay area led to an ^unprece- 
dented agreement -Indian and 
Inuit groups received financial 
compensation In . return for-. 
their - land rights .. . Political asl 
well as economic institutions; 
have , been kef tip- Creation of 
the Kativik. Regional Govern*. c 
meat which.- Envisages 'strong . i 
measures of, autonomy. In the L 

gas exploration by the 1973 oil-, -future means !that Inuit . in 

price rises. It became economic- 
ally feasible to explore Jhe Are* 
tic 5ystematicallyi 
The costs are light Home 
Petroleum's offshore explora- 
tory wells in the Beaufort Sea 
are the most. expensive in the. 
world at C$40m a time: Drilling 
is only possible in the three 
summer months and the -com-, 
pany failed to complete produc- 
tion testiiig this year before 

Northern Quebec, will gradually - 
take over mut* of their own -- 
education and ‘ administration-' 
The .Zniut see it ' a*' "a . fixture / 
semi-autonomous government. . . 

For a host <rf . reasons. the.-j 
federal Government .prefers to .! 
separate questions of - economic •; 
compensation from . political • 
development - . • . ' Officials in , 
Ottawa argue, that dealing with - 
political compensation throug^i - 

Fear of damage to . 

the environment, inflationary must be brought north at "great 

floating ice forced suspension -of ?and. <dayus. is/ impractical^ and 
operations. • unrealistic . and. , that . 'single 

All administrative costs to. the 5et 

area are - many times higher present -, 

than in the South because of «^tinne, .Federal funds 

distance. Healto, welfare, audit- were • ■ 

ing, maintenance -all require off; m NWT. The/ 

special -planer to fly hundreds D *9® Nation, the _chief lndian . 
or thousands ormiles, Govern-. P°tiucal organisation ^.in NWT 
ment • einployees demand ' - a demands Jor p olit i cal r 

southern living standard. Offi- a dtonoxny in .'a- . land: claims 
cials live like their counter- settlemaatiTurtiaenadre-, ft.had_ 
parts in. Toronto or Edmonton, 

Fuel, materials, and supplies Ttene pre^ ^ i 011 ^ _ 

fire; : ; ri»i^ta£Ibfl, r wifii ; the 

development and' social dis- expense. During the summer' Mets.Asspdation. 

cajjcujw. i/unug cne aummer - ■ ,7~- — ? — "iTTr. -.- 

roads in NWT; are barely pass^ ^ bope to get the 

_ r. . uraetam . -AVaHa nlnVvw 

ir “* A “few decade* am -it ra* . ^ rt C0 ? E; .Itiait' ^sewheip in 

The greatest employer in the « U jt e resDectabl?tn ^ntse . believe COPE .should 

>rth is the civil service, but Sgf 

culosis is still rife. In the 
recent past whole communities 
were wiped out by the disease. 
In Inuvik most people. Indian 
or Inuit, have had relatives die 
of TJB. Those who have work 
become depressed as those who 
live op welfare cheques. 
Parents resent being dependent 
on their wage earning son. 
Everybody yearns to be a “ real 
lnuil.*’ quite independent of 
white society. In fact the death 

ruption were behind the ... . , ^ ..... .... 

decision. The suspension pushed able. They re-open when "the . western •'Are tic .claim settled 
- some commodities from boom freerwip^ ^ doses over the inmnn* complicate, 

has more than 80 per cent un- into depression, hitting white erable lakes in the terrltory aod" -- 
ernplojinent among native service industriesi especially sofftfffies toe soaw tundra. - 

people. kawl . - _ _ r 'j r TV»Trt— n/YPP- Tnnii<. j,alidia« 'in 

In isolated settlements tuber- 

north js xne civu service, out “the native nmhfom •» 

a large number of the white disauDMr^ torSSh ^ f - Those ^ 

residents are dependent on inc. Many Indian+ribe^ml^^ . tavpuring, the, ffeod^ towards/ 
commerce. One Inuvik resident spetial^^statns : &j*** F autonomy foir - 

explained: “ People forget that -£25L ' 

ST Tbtee . 

or non-statos Indians. could dMfr i: r - 5 
their status. Often were ■■"sUX : X 

couraged to sell their ' 

Large numbers' of metis ^ (of' 
mixed Wood) and • naif 

_ . Indians are outside boft 

blow to that life came more is only grasped by travelling white economy "and the Indian 

»han 100 years ago when the there. Itis quite normal to be reserve system. - -V : co ulrtH Jn the future. t ; ^ L. ‘ *‘ A - 

Hudson Bay Company spread marooned sometimes for days — — - 

we whites are jdst as much 
northerners as the natives. The 
pipeline would have brought 
prosperity, jobs for whites and 
natives alike. Now- we are all 
worse off. We desperately need 
new projects.” 

The scale of Canada’s North 

Talking to people in the 

Mlcfeael lnigay_ 


&cS3&r-. i§ X&7Z 



h W 

Jr -p^Ur* 

Achance to top growth league 

a -i--. s h 

THE WESTERNBtOST-Cazzadian such is less pronoimced than in 
province has a dvance of .going the case of forest products, 
to the head -of, the national The- possibUity/.of something 
growth league .1979;. Mr. . : going -wrong .In' the U.S. must 
Evan Wolfe. : the province’s ■ therefora be tah^' into. account 
Minister of. Finance, h»c gaij in .* • assessing' a. . junnher of 
that British Columbia is on the promising: news i^ems shout the 
threshold of. a boom at the end economy ." of British - Commbia 
of a year when Ihe.prpwnciai •.jwhIoh_.have' "become "Known 

economy . "seems feto . - haVe ' 'a^Cently^toinstant^^tMhlan 
expanded by gome 4* per cent *BloqdeJL the biggest' to rest pro- 
Zn Ottawa, the forecasters expect " dnets . . company, intends to 
industrial JSvesttwmij^the-pr^. install a new I90,000_ tonnes a 
Vince during 1979 "to gfttw faster ' 'year ; newsprint marihfa e at 

than the national average* 

Powell Elver. It will Berthe first 

Whethertbe-thresbold - will newsprint machine;;'. to be 
actually' bet crossed Is another Installed in the province for 
question/ The answer depends ten years. Other compan ies are 
to :h great extent oh the impact conside ring buying machines for 
of President Jimmy Carter’s makin g newsprint..' 

measures to .stabilise' the U.S. 
dollar. If they' push the U.S. 

There also .has. teen good 
hews from Macmillan' Bloedel's 


into recession. British Columbia Vancouver plywood plant Less 
could . , not: escape the . than six months ago it was 
consequences: . threatened with closure, but in 

The* forest products industry, October the company was able 
which has .been'. 1 booming in 197ff to announce that ."Vanply had 
and' which accounts tor more been making its ^ first pre-tax 
than half of -the. gross provincial profit for a very long time; That 

product, depends heavily bn 
U.S. markets, and in particular 
upbu ■ bousing - starts ‘ there. 
Almost half its shipments go to 
the US..' a proportion, rising to 
three-quarters - in the case of 
lumber. : 

A - cyclical setback has been 

was achieved by - ft; partial 
closure — at the cost of -about 
one in three of tbe 700 jobs 
at Vanply. The plant Is not yet 
out of the wood; a final decision 
on its future hks "yet to be 

None the less, the episode is 

expected, for some time in U.S. instructive. The. rationalisation 
housing starts,- which have been plan . was hatched : after Mr. 
running at - very high levels. It . "'William Bennett, the provincial 
coiAd easily be severely, accen- Premier, had described closure 

turned; by the higher ;Ihterest as unacceptable. In doitfg so he 
. rati s -imposed in the UJS. in the really departed - ifro m " the 
^Interests ..of ;the ; feoimtiy*s principle of his Social Credit 
bal nee pf payments. party that business add govem- 

. Smilar considerations may ment should be rim , as- far as 
apj y in the case' of mining, the possible according to business- ; 
sec nd . largest 'industry, in -like considerations, -HJs inter - 1 
British Columbia. If the U.5. vention finally lefl totra' three- 
goe into recession, the slow party understanding'- between 
ree rery in the prices com- the company, the -Government 
mai led by non-ferrous metals - and the International Wood- 
con I be interrupted- The workers, the trade union .of the 
ini] ict would be... felt, strongly . forest products industry. 
in British- Columbia, - .which 1 . Labour relations fat Canada, 
exirts 88 per cent of its metals and especially In. . British, 
prriuction, though the depeh- Columbia, generally fbBew the 
de :e upon the U.S, market as confrontation pattern. The pro- 


: I 


' :>* - --■ 

t: - 

j ip&blem. Alberta's economic 'it cannot all be sold. 

: jerformance over the last half While Alberta supports the' 
! ' iecade-has been -so strong that ..federal .Government’s desire to" 
r ft could not; have been expected' move"; additional gas in ; to 
..... |o continue indefinitely. . The eastern Canadian markets, pro- 
' irovincial construction -industry; vided it can be economically, 
. j.' frhich accounts for about 25 per. . done; /..Mr. Lougheed favours 
/ pent of the province’s output,; additional natural exports to the. 
'.fb° ut . double the- share -the U.S. . X)ii. an' intermediate term 
7 :.p^ustij.hid(b ^ ^bi®TOtoe_' basis, .on. the grounds that the 

■ ^economy, has been growing by- exploration that, would result ( 
. . -^aboiitlO .per cent a year in real would, mean new; discoveries in { 
■jterms. Next year, there wll bo the V future.' JHowever, the I 
• • ino construction industry growth federal' Minister of Energy, 
.6 at ftU, . the Conference Board. Mines ahid Resources. Mr; 

■ ' -iL,' Alistair Gillespie, formerly *• 

.With this , smnmeria comple- - 

« tion , of the; $2 bn Syncrude oil 

Toronto businessman, is known 
.to have - doubts about tfie, 

vince has a long history of 
labour strife and strikes. Things 
have been relatively quiet only 
since 1975, mainly because the 
imposition of statutory wage 
controls in Canada meant that 
f on the unions It -was not really 
worth while going on strike. 

These controls are now run- 
ning out and there is much 
speculation about tbe con- 
sequences for industrial rela- 
tions. Mr. Jack Munro, the 
Woodworkers' president, has 
forecast that the wage talks 
that he will be engaged in In 
hud-1979 are going to be 
difficult. For a start he wants 
a share in the windfall that the 
industry has supposedly picked 
up as a result of tbe devalu- 
ation of the Canadian dollar in 
terms of the U.S. currency. 
Nobody at this juncture can 
prophesy how these talks will 


The possibility of a setback 
in the U.S. economy could very 
well serve to cool union ardour, 
but there are other signs that 
tbe old rumbustious pattern of 
British Columbia labour 
relations may be changing. 
The events at Vanply are one 
example. Another is that tbe 

construction walkers, usually 
an especially aggressive lot, 
settled moderately this summer 
under the impression of poor 
prospects for their industry is 

The most intense economic 
activity in tbe province for the 
time being is concentrated in 
the area of Fort St John, near 
the border of Alberta in north 
eastern British Columbia, where 
big new finds of natural gas 
have been made. Exploration 
activity is high; some 120 rigs 
are expected to be at work in 
the winter. 


British Columbia’s saleable 
gas reserves at the end of 1977 
amounted to 6.7 trillion (million 
million) cubic feet and it is 
estimated that another 7.7 
trillion cubic feet gross will be 
added to that by the end of the 
century. At present output is 
in the region of 360bn cu ft a 
year, of which more than two- 
thirds is exported to the U.S. 
Unlike forest products, that is 
an export item that is unlikely 
to suffer from any deterioration 
of tbe U.S. economy. 

In contrast to neighbouring 
Alberta, British Columbia has 
not embarked on petroleum 
chemistry as a means to 
diversify its economy upon the 
basis of its natural gas. As 
things stand competition in that 
particular industry is quite 
severe enough in Canada. 

Next to the search for gas, 
most excitement has been 
caused by the possibility that 
British Columbia may join the 
ranks of the uranium producers. 
Exploration is intense and pro- 
posals have been made for a 
mine in the south. It has, how- 
ever, run into intense opposi- 
tion on environmental grounds 
and the Government will not 
give permission to mine 
uranium before conducting an 
intensive inquiry. British 
Columbians are an affluent 
people in a relatively unspoilt 
landscape. The inquiry could 
well prove difficult. 

The other extractive 
industries have reached tbe 
point (or at any rate had done 
so before the Carter measures) 
when the worst appeared to be 
over. Japan is the key customer 
for coal, having taken most of 
the G5344m of metallurgical 

coal for steelmaking that 
British Columbian mines sold 
last year. In spite of the plight 
of the steel industry, a price 
increase of 4.1 per cent was 
negotiated this year, facilitated 
by the decline of the Canadian 
exchange rate. 

Metal miners in the province' 
have been helped by not being 
involved in nickel. The price of 
copper, which accounts for more 
than half their output, has been 
rising. It still has a long way 
to go, however, before it reaches 
U.S.$1, the level at which It 
would become economic to open 
new mines, according to Mr. 
Brian Carter, economist of the 
Bank of Columbia. The success 
story of 1978 has been molyb- 
denum, though the period of 
steep price increases now 
appears to be over. 

The uncertainties surrounding 
the metals mining industry are 
well illustrated by the fact that 
though exploration expenditures 
are rising towards the high 
levels of six years ago, that does 
not take account of inflation. In 
real terms they are still well 
down. Mr. P. R. Matthews, 
managing director of the Mining 
Association of British Columbia. 

has gone as far as saying that 
the industry might disappear 
altogether unless new mines are 
opened soon. 

Between 1972 and 1977, Mr. 
Matthews said, eight mines had 
opened, 11 had shut, leaving 18. 
Another three were closing this 
year, though a copper mine has 
come on stream in conjunction 
with a new smelter at Afton. 


The picture drawn so far is 
very much that of a resource- 
based economy.. The richness of 
the resources available and a 
population of only 2.5m make 
that almost inevitable. By and 
large it also probably tallies 
with the aspirations of British 
Columbians. The Bennett 
Government would like to 
diversify cautiously, on the 
basis of adding a bit of depth 
of manufacture, for instance, to 
wood products before they are 

Some success has been 
achieved. For instance a $2 5m 
venture to .make glass fibre 
insulation products in the pro- 
vince was announced recently. 
Proposals to roll eastern 

Canadian billets into wire rod 
at Richmond have been agreed, 
subject to final arrangements 
being made. 

The wish to persuade inves- 
tors that British Columbia will 
continue to pursue market poli- 
cies seems to have been behind 
the possibility of a premature 
dissolution of the provincial 
legislature this autumn. Ail the 
indications were that Mr. 
Bennett and. his Social Credit 
Party would have defeated the 
socialist New Democratic Party, 
whose period in office from 1972 
to 1975 thoroughly displeased 
the business community. 

Mr. Bennett seems to have 
thought better of it; the indica- 
tions are that he will wait for 
1979 before going to the polls. 
Meanwhile, he has taken the 
opportunity of the Social Credit 
Party's conference to defeat 
“ right to work” motions sub- 
mitted by strongly anti-union 
members who want to limit 
severely the right to strike. It 
was another sign that British 
Colombia may not go back to 
its industrial scene of bead-on 


B RUNNING at the head' in . AlBerta/ihis winter is that- 
pack tor a number of : of. naturapgas exports. It is one 
Uberta .'seems likely to ‘ that cou^a trigger a confronta- 
o take breath in 1979.. tion between Alberta and the 
ng to. thq ' latest' esti- fedeiaf . Government although 
Hies of the ' well regarded perhaps not as serious as 'those 
inference ..Board, in Canada, of early 1970s when a major 
Iberia’s real growth of4*5 per rupture developed over oil- in- - 
mt in 197E will be the highest .djistry pricing and taxation 
; any Canadian province. Neatf. policies. 

•ar, however, it will slow to 3.5V Ejjploration for hydrocarbons 
ir- cent, _ just close to the, /has gone at a record pace in 
itional mean. That; does. not.. Alberta in the last few -years 
Sean that the bloom is off the with the. result that so much 
fild rose, the provincial floral natural gas has /been found, that 

p usds plant at FarthMrilumy ; of *, y Iarge sca ie 

E. an! neat summer's scheduled oorts to the TT s 
F gyplefou of the’ .wbrid. scale ^ mncen> wilh - 

?>,*! ™ the*asS*rtsgoes beyond.liis 

SearSd^S-L^ S-toSlS! TSKTS 

fKKVtJE'SS flaw at high levels. In negoBa- 

ffirough ^middle. 1970s win 
• be done. Oflzers are waiting in -.TS":- 
the .wings to .take Alberta 

itamSTSe *#&£*!£' *s; : 1135 

. 1980s. Another on. sands Planr us^ 

- smmi liVpiv. mne that - more, natural gas to the U.S. to. 

seems likely.mostprobably that 
proposed by Shell .Canada, 

a lowering - of UB. tariffs oh'. 

whi^rriS Si pricTbE: and certain pi* • > 

Development of tfie province’s jessed food producte. Tire Uj^ . 
heavy oils, little acetic to Alberta is vun* 

used as they flow so sluggishly , jv d -., bas -fi 

through the rocks; is now being £^? ada at the Geneva trade 

considered by - the National 
Energy Board. And the SlObn 

talks in a way that responds to' 
Alberta’S: requests. While it is 

natural' g»«s pipeline from! Sftfc clear, how the federal- 
Alaska to markets in southern Government win resolve the ex- 
U.S. . will pass across - the .: ~ Csmada’s ;; 

province if it Is built. 

Minister, an "Albertan whose 

But "it will be a year or. two Mother, is deputy premier . of 
; before the next boom. All of the provjnpe favours, exports 
these projects depend on the it is dear tbat Ottawa is ^ going 
course of public ' policy in to . have to- walk a tightrope- 
‘ : Canada and ■ the UA and the between defending the needs ot 
oil and ■ petrochemical cam- . Canadian gas consumers on one 
■ 1 panies in' Alberta 'have learned aid® and -;on : the other not, 
that even " in a province Tike ' offending' Mr. Lougheed and the 

Alberta whose. 'government .’is. 
an avowed supporter of free 

oil Industry.. 

.One measure of the optimism- 

enterprise, they must wait- for with which Mr.. Lougheed views. 
‘ the councils of government to the Industry’s prospects .these 
decide a. project’s fate. iu> days is his recent declaration 
? matter , what market dictates 1 that, with the. additional oil and 
.might ; say.’ . gas reserve discovered in the 

• ^Whife:. these major projects past, few days, some of tte. 
that will cany the province in urgency has been taken out of- 
the.iSBOs are winding their' way; the drive" to diversify the pro- 
• through the government- de- -vincial economy- and to develop 
cisiqif mtili the urgent question an industiial base that will carry 


Two words about 
business investment 




British Columbia 
means resources 

If you have the processing know-how, we have the 
raw materials. A perpetual timber crop. Metals and 
minerals. Fisheries. Agriculture. i 

Come Join our processors and share J 

in the opportunity. « 

British Columbia 
means business 

You wont be a pioneer in British 
Columbia. There's a sophisticated 
technological base to build on; { 

machinery and equipment manu- 
facture, ocean engineering, | 

consumer products, high lech- { 

nology industries, consulting j 

engineers and lots of back-up in 
every direction. I 

U s all part of 
today and tomorrow 
in British Columbia. I 

British Columbia 
means energy 

Is energy essential to your plans? We have it in 
abundance. Hydroelectric^^, 
power. Coal. Natural 
Even oil. New J? 

discoveries promise a 

evenmora potential % m, 

forthefuture. & §M 

British Columbia 
means people 

Some of the best and brightest people, 
the talented people, come here for the 
gentle year-round climate. The great M 
recreational access. Sophisticated J|| 
cultural and educational scope. Plus 
work opportunities and challenges., 

It pays off in productivity tor British^™--™ 
Columbia business. fflB 

British Columbia 
means opportunity 

Our economy's on "the move. Last year. British 
Columbia outperformed Canada's GNP by almost 
60%. With exciting new projects like the Alaska 
Highway Gas Pipeline, ail indications point to now 

British Columbia 
means markets 

. By itself; British Columbia Is one of the vital growth 
markets In North America. Now add the rest of 
Western Canada and the Western U.S. Plus direct 
access through our modern ports to the flourishing 
markets of the PadficRim; 

Write to British Columbia 

We'd like to tell you more about British Columbia. 

About how we can assist you with financing. About the 
ideal location for your business. For the specific facts 
and figures you need, fill in (he coupon.; Ministry of Economic Development, 

#315 Robson Square, 800 Hornby Street. 
Vancouver, British Columbia. CANADA V6Z 2C5 
Telephone (604) 668-3049 Telex 04-55459 

on Ministry of Economic Development, 

British Columbia House, 1 Regent Street, 
London. SW1Y 4 NS. ENGLAND 
Telephone 01-9306857 Telex 51-917369 






\ ? : 




Province of . Ministry of 

British Columbia Economic Development 

Honourable Don Phillips, Minister 

at;.,'-..-. —i- ✓«>- 

A profitable partner 





Financial Times Tuesday . December;. 19 .1978 

Firms in Britain are urged to look to 
Canada as a procurement source as well as 
for profitable returns on commercial and 
industrial ventures. 

Worth investigating for procurement of 
components or finished products are 
sectors where Canada has internationally 
recognised expertise — such as Timber 
Frame construction, telecommunications 
and electronics, nuclear energy, short 
take off and landing aircraft and offshore 
technology, to mention a few. 

Canada provides a sound manufacturing 
base offering profitable growth potential, 
plentiful natural resources including 
energy, a fast growing and qualified 
labour force and attractive government 
incentive and development programmes 
in the areas of R & D, manufacturing and 
export marketing. 

You are invited to contact Canada’s trade 
offices in Britain as indicated hereunder, 
to find out more about how we can do 
business together to our mutual benefit 
as Commonwealth partners. 

Minister (Commercial) 
Commercial Division 
Canadian High Commission 
1 Grosvenur Square 
London W1X OAB, England 
Telex: 261592 (DOMINION LDN) 

Consul and Trade Commissioner 
Canadian Consulate 
Ashley House 
195 West George SiTect 
Glasgow G2 2HS. Scoiand 
Telex: 77S650 (CANTRACOM GLW) 

jg ^ Government 
of Canada 

Industry, Trade 
and Commerce 

du Canada 

et Commerce 

The Parti Qu6b£eois Govern- 
ment of Premier Rene Lfivesque 
has just begun its third year of 
power. While the “ enemy 
remains the federal Liberal 
Government of Mr. Pierre 
Tmdcau in Ottawa, Mr. 
Levesque is carefully nurturing 
an image of moderation as he 
launches his campaign to give 
Quebec sovereignty in associa- 
tion with Canada. 

The Levesque cabinet, close 
students of public opinion polls 
and seasoned tacticians, have 
also accepted that the province's 
francophone majority would not 
vote for a straight independence 
option in the referendum 
promised for late 1979. 

As Mr. Claude Morin, Inter- 
governmental Affairs Minister, 
put it several years ago: 
“ Independence is like a flower. 
It won’t grow more quickly 
because you pull on it." The 
PQ Government is avoiding any 
temptation to pull, and has 
dropped the words “ independ- 
ence ” and “ separation ” from 
its vocabulary and its 

By starting a full-scale cam- 
paign for "sovereignty-associa- 
tion ” and cultivating an image 
of moderation. Mr. Levesque 
clearly hopes to steal the unity 
issue away from Mr. Trudeau as 
the spring federal election 
campaign approaches and also 
to disarm the Quebec provincial 
Liberals under their new leader, 
Mr. Claude Ryan — an ereperi- 
enced debater and communica- 
tor. The ** sovereignty-associa- 
tion ” proposal itself is being 
kept vague in outline. 

Ministers, Government mem- 
bers of the Quebec National 
Assembly and individual leaders 
of the PQ have spoken publicly 
about it in so many different 
ways and from so many differ- 
ent viewpoints that the result is 
near obfuscation. Perhaps con- 
fusion it this point is not unin- 
tentional. But if it means 
anything, “ sovereignty — associ- 
ation ” would lead to de facto 
political separation of Quebec 
from the rest of Canada while 
retaining the advantages of the 
existing economic integration. 

Ln recent months. P!r. 
Lfveanue and his leading 
ministers have been conciliatory 
at federal-provincial confer- 

ences, studiously avoiding the 
abrasiveness they displayed 
during the first year of office, 
and eager to assure the rest of 
Canada that their plans would 
not “disrupt" the present 
structure of the country and the 
lives of millions of Canadians. 

Tbe Finance MinJsier Mr. 
Jacques Parizeau has several 
times stressed -the economic 
interdependence of Quebec and 
Ontario as the two major manu- 
facturing provinces, and has 
lauded the traditional role of 
Ontario as *’ honest broker " in 
the quarrels between Quebec 
and Ottawa over the division of 
political powers. As the 
Canadian dollar sank below 85 
cents (U.S.) this autumn, he had 
sympathetic words for his 
jousting partner, tbe federal 
Finance Minister. Mr. Jean 
Chretien. Quebec was willing to 
do all it could, he declared, to 
help steady the Canadian dollar, 
even by advancing its foreign 
borrowing programme. 


The lower Canadian dollar has 
been helping Quebec's hard- 
pressed textile and shoe indus- 
tries. but it could cost the 
province and its power utility, 
Hydro-Quebec, tens of millions 
in extra interest costs. Together 
they have several billion dollars 
of debt outstanding in U.S. 
dollars and other hard curren- 

On energy matters, Quebec 
has found its interest running 
parallel with other parts of 
Canada. The Energy Minister. 
Mr. Guy Joroji, has said the 
province will be only too happy 
to import much more Alberta 
natural gas. and the trans- 
Canada pipeline should be 
extended from Montreal to 
Quebec City at least 

Mr. Joron also says Quebec 
would now allow power from 
the proposed Gull Island hydro 
□reject in Labrador to move to 
markets beyond Quebec via the 
province's transmission svstem. 
so long as Hvdro-Quebec can 
recover the cost. 

Last month Mr. Levesque 
conspicuously signed copies of 
two bocks published by Parti 
Ouob^cois members of the 
Quebec National Assembly ex- 

• .• ' •' ' ' IvK 

r : ; ' :v:T; 



IB i _ j ' " 

iv? ^ v ■:••••• 

plaining the “ options " from 
which Quebecers must choose. 
One exercise is 620 pages long. 
A disarmingly simple “organi- 
gram " shows how a “sovereign 
and fully equal " Quebec might 
be meshed politically with the 
remaining Confederation of 
nine provinces through a Con- 
seil de VAssociation Quebec - 
Canada ” made up of four 
ministers from the Government 
of Canada and four ministers 
from the Goverment of Quebec, 
while economic intergration 
would remain undisturbed. 

This is hardly tavern talk 
or stuff to win the hearts 
of mature francophones in 
rhe coming referendum. The 
most recent public opinion 
polls have confirmed that most 
Quebecers reject the concept 
of “ sovereignty-association,” 
though perhaps nearly half the 
francophones theoretically 
might support Mr. Levesque if 
he merely asked for a mandate 
to negotiate such a solution to 
the constitutional issue. 

The French-speaking majority 
(.SO per cent of the total Quebec 
population of just over 6m) 
was generally satisfied when the 
PQ defeated the Liberal Govern- 
ment of Premier Robert 
Bourassa on November 15, 
1976. Most felt a change was 
needed, and the province might 
be governed more in their 
interest and free from the com- 
promises required to accom- 
modate the powerful English- 
speaking minority in Montreal. 
Mr. Levesque won about half 
tbe French vote on the promise 
of “ good government." 

Once in power be let his 
Cultural Affairs Minister, Dr. 
Camille Laurin, a psychologist 
and TV commentator turned 
politician, bring forward Bill 
101, the French Language 
Charter, designed to ensure the 
pre-eminence of French in 
Quebec. The Bill was push?d 
through with little modification 
and no heed for the economic 
consequences. Its final passage 
was a sign that the language 
battle in Quebec had been won 
for French. Henceforth the 
language of work in industry 
and business* except in desig- 
nated high-level bead office 
operations and culutural “enti- 
ties” such as English news- 
papers, was to be primarily 

The Anglophone minority in 
MonTeal is grudgingly accept- 
ing the legislation and business 
signs in French now appear 
everywhere in Montreal. 

Problems with “illegal” entry 
nf immigrant children in the 
ET^.M^h-langnage school system 
rema ! n. and both Anglophone 
and Francophone business com- 
munities are still highly critical 
of the general economic effects 
nf the legislation. While many 
francophones in Montreal find 
the better jobs have become 
widely available to them and 
they can work almost exclusively 
in French. Some have recog- 
nised that by lessening the need 
for the French to be bilingual 
they may actually be forfeiting 
an advantage. 

Many Anglophones have de- 
cided that if they are to remain 
in Quebec and maintain their 
relative economic position, they 
will have to become bilingual 
or at least modestly fluent in 
French. English-language edu- 
cational institutions are show- 
ing flexibility and are taking the 
view that they have a respon- 
sibility for promoting 
bilingualism and that Anglo- 
phones remaining in Quebec 
should have a large part of their 
tuition in French. 

After the Janenage legislation 
was passed last year, the 
Government moved to relax 
tensions and fulfil more elec- 
tion pledges. Consumer, labour 
and general social legislation 

was hastened forward. A new 
labour law, heavily attacked by 
business for putting excessive 
power in the hands of the 
unions, was modified slightly. 
But it was designed to dampen 
down the labour unrest which 
had plagued the province for 
several years. The outcome is 
not yet clear. 


The Government this summer 
launched an official inquiry into 
the 1976 Olympics overspending 
— seemingly a good issue for 
blaming its predecessors ^ for 
giving “ bad government.’’ In 
November it got its reply in 
the Montreal municipal election. 
Mr. Jean Drapeau, a strong 
federalist and the man who 
publicly rebuked President de 
Gaulle after bis dramatic “Vive 
Je Qufibec libre " cry during his 
visit to Expo in 1967, was re- 
elected overwhelmingly .as 
Mayor for his seventh term. It 
is fair to recall that relations 
between Montreal, with more 
than 2m inhabitant and most 
of Quebec industry, and Quebec 
City, the seat of government, 
have always been tense. 

Mr. Levesque bas been culti- 
vating the idea that hjs Govern- 
ment is in the long tradition 
of French Canadian nationalism, 
a logical successor to Premier 
Maurice Duplessis with his cam- 
paign for * autonomy " for 
Quebec, and of Premier Jean 
Lesage, with his slogan 
“Maitres cbez nous.” It was. 
Mr. Levesque, a former member 
of the Lesage Cabinet who last 
year ordered a huge statue of 
Premier Duplessis out from 
storage and placed prominently 
before the National Assembly. 

Mr. Ryan was chosen as- 
leader of the Quebec Liberals : 
in a Hurry nf optimism early 
this year. For some years he 
has been a leading exponent of 
moderate Quebec nationalism 
before audiences in other parts 
of Canada. He is the former' 
publisher and editor of the. 
influential French - language 
daily Le Devoir. 

Soon the polls showed ' Mr. 
Ryan ahead in popularity com- 
pared with Mr. Levesque, .but 
his rating has slipped recently! 
Mr. Ryan's task is not only to. 
breathe new life into "the 
Liberal riding organisations. He 
has tn develop his own credible- 
constitutional alternative inde-' 
pender.tiy from Ottawa, attack 

the political and. economic 
record of the .PQ. Government, 
and puncture some of its propa- 
ganda for an : • 'undefined 

** sovereignty-association.’ 7 : *:■ 

The political, debate,' and the 
delayed effects of the language 
legislation have contributed to 
keeping growth slow in Ihe 
economy and to the continuing . 
high unemployment of - around. 
11 per cent ’ Last year the ; 
Quebec economy grew at not_ 
much, more thad.2 per; cent in," 
real terms, or .below the .national, 
average. In 197B the figure .may., 
reach 3-3$ per cent, despite pw "■ 
vincial tax breaks for small add . 
medium-sized business and 'the 
resurgence in traditional Indus- . 
tries such as shoes and textiles. 


This would again, be under 
the national average, and there 
is reason to believe that growth 
in 1979 win nqt :be any higher. 
Business capital spending Inten- 
tions for 1979 are still running 
below .the longer-term trend . 
line and well below., those in - 
Ontario.. Service industry, 
growth has slowed down, and- 
construction in - Montreal . is 
running at about' 50' per cent . 
of capacity. But in eariy De- 
cember first signs appeared; that 
the industry, might "turn up 
ajgain. " 

The main support for public, 
and private - investment to- 
gether remains tbe $16bn James 
Bay hydro project where the 
first generators start up next , 
fail. To help finance it, power 
rates will be rising -around 20 
per cent in the next three years* \ 

Business remains extremely; - 
critical of both the .laagUag^ 
legislation and Mr. FartaeauTs! 
April 1978 budget which raised 
taxes on those .with gross'; in- 
comes of $30,000 and^above 
quite steeply and reduced de- 
ductions for a large number of 
professionals and salesmen- on - 
their cars. Business argues; it . 
is increasingly difficult’ to get - 
management and technical- staff 
to transfer to Quebec /from' 
other parts pi the country..- or 
from abroad;. because Quebec’s 
personal tax rates, irr'the middle 
areas are about the highestita 
the nofintry. ; The longer .fern* 
pattern in any . case . has’ been 
for. company .^headquarters -to 
move ro Toronto. .... ’ • . 

A Quebec Liberabparty -study. 

just published .finds that Quebec 
has lost or is about to lose 5|500 
direct jobs because of the tranB> 
fer of headquarters and depart-., 
m'ents .to Ontario and elsewhere- 
since the * 1976 election. Sun - 
Life of Canada rand - Bank of 
Montreal," it says, are moving 
about. L50Q poojpfle .to- Toronto. 
About 15,000 more jobs,, .‘which 
depend indirectly on tfie5;5pQ ■ 
transfer^, are also feibg 
and the- exodus is not over be- 1 
cause “eight, 'more- 4 ' major 
firms ?! are planning moves out 7 
af.Qflebe^ - " 'Jr 
. : Quebec’s most - actbre JOndds- 
-tries.. nbw 'are alumhmnd. aen>: 
space and pulp and paperh-dn, 
all cases mainly, because of. the 
strength of 4he TT.S. economy hr. 
the pastjwb years. . The, recent, 
federal • budget, ‘ with X tax 
advantages : tn _ industry and 
raiQing through . higher invest- 
ment' tax * credits, ‘ win help 
Quebec ‘companies to remain 
competitive. The traditional in- 
dustries- such ks textiles -and 
slides,' and to a lesser extent - 
fnrriltuifc, - fcavfe been : helped 
directly by the lower Canadian 
donaif and: higher prdtectiod! 4 

Mr.Parizeau’s .main -challenge •• 
is the continued ^growth ■ of 
publ i c spending at. a rataii^jer 
than the- growth in Jibe pfoirai- 
cial economy."; -ge 
get the pubtib service imfoas 
to accept- a -rekti.veiy . lai^-'ifr 
crease - in !the, .first year ^ - a- 
tbree-yeir contract, and -smaller 
one* in; tisd:iast 
of coxdin'duig .high , uhengplbyr 
meirtv C 1 * 1 pw cent) and“sIow 
growth; he /may have some suc- 
cess. He -has tried very hard 
to get the general public <n ids 
side. -• ''"V';' 

Though scboola.,Iik the^ties 
are being elosed each y^T ; by 
the score for lack trf pujjfe^the 
birth rate declined ip-thfcjeHy 
1970s to one r of : the lowe^ in 
Canada), education : cost^'oon-. 
tihiie to -rise.- 'The quaUft-of 
some services, '--poitieuarly. 
health care and hospitals; >, de- 
dining as. iSe Goverment 
struggles to get unit: cbsta4own 
to the levels of Qntario- ,-iy. 

The Levesqire Gqvernmen: in- 
herited- many - economic -'ind* 
administrative problems,. bu>xts 
own .policies and -attitudes hve 
greatly V contributed /Vfhe 
general stare “ pf uacerf afty 
holding back: investment r ndf 
more. solid eco iofiiic pss^res,- 

1 ». 5 . 

-■ . • -I S J I 


Alberta once conventional oil 
and gas wells are pumped dry. 
The boom of the 1970s that took 
the province into nonconvention 
petroleum production on the tar 
sands and that built a petro- 
chemical industry in tbe pro- 
vince took the diversification 
some way down the road. How- 
ever, the diversification plans 
were starting to run up against 
some basic weaknesses in the 
provincial economy. 

The province has a small 
domestic markut, is locked in- 
land several miles from any 
large scale consmer markets, 
and will have to rlvmh over 
whatever barriers that U.S. may 
erect if Alberta goes after its 
closest markets in the Pacific 

These make the next stage oF 
development a tougher go. The 
next petrochemical plants will 
largely be aimed at the TJ.S. 
market. Oil production from 
tar sands or heavy oils could, 
in the short term, displace con- 
ventional oil production, from 

which Mr. Lougheed gets " a 
larger royalty than from uoik 
conventional sources. These 
considerations, as well as the 
timing difficulties of the big 
projects, probably required 
Alberta -to take a rest from lead- 
ing the Canadian growth parade. 
However, 1979 might not be the. 
best moment for a reef unless 
people could be persuaded that 
it was planned all along. 

Mr. Loug heed’s Progressive 
Conservative Government faces 
a provincial election iir 1979 and 
has been weakened by announce- 
ments from nine of his mini- 
sters that they do plan to seek' 
re-election. Curiously, all 
announced that they are not 
seeking re-election beaus# of 
personal reasons; however, it is 
widely known that more, than 
one nose is out of joint because 
tbs Premier decided to seek a 
third term in office after earlier 
saying, he would only remain 
for two terms. From a business 
standpoint, the biggest loss 
from the Cabinet will be the Oil 

Minister.'.'Mf-: Don Getty, wo . 
was wid^ly. expected to .be ic.] 

Lo ugheed’s successor, . ...‘ , .. ri‘ . 

•: Though the growth rate , wti 
slow next year. . Mr. LousheJdL .. 
will have ; "several^ econafefc- • 
strengths ta. taflt- about in' tfi> . 

. campaign. The cattle cycle 's’ ’ 
at a peak and- ranchers 
enjoying record prices, not- tZr‘ 
important in a .plbvince th? : 
has 40 per cent of Canada’5 beif . , 
herd. The tbuiist industry Tfik' . 
expanded ■ impressively ; as hav; - 
other" service industries; Sou*. ; 
ing. starts. .are almost doubh 1 -. - 
what, they -'were. .^heh 'M^.; 
Lougheed £rat- took- "office -i£> - 
mi,. ... .7?.; . 

F/rthermore, thanks to ' hifl^ . 
oil revenue has he been shle tb 
provide '•■■one'', of " the ' highest 
"lvels of government service to 7: 
the proyinciaJ electorate without. ■V 
provina'al government borrow- ? 
ing for six years while lowering 
taxes to the lowest level of any 2 
Canadian - province.- ?• 

rn^.r-: i 

; w i 






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-i*. <■,■ 

never had a Christmas so good 
according to fruit .and. vagfet£bl§ 

traders. Poultry producers are 

swelling with pride that, turkey 
and chicken prices are hardly 
dunged, compared with a year' 
ago, in spile of infiatiozL Sit 
there are black spots tcK nuts, 
especially almonds and. brazils,..- 
are considerably more, expen- 
sive. Sultanas are . In very, short - 
supply. Meats, apart from poul- 
try, are costing -8 to 10. per-cent' 1 
more than lasrChrfstmas in- line 
With the general rise in . prices 
throughout the year; ' 

However, an important ele- 
ment affecting prices more -than 
usual this year is the "-highly 
competitive situation iis .the 
grocery and supermarket trade. - 
Retailers are cutting their profit 
margins in . many: -cases oil. tradi-. 
tional Christmas fare as "loss 
leaders” -to •ftr^/ciwtaimiw.- 
:V This is - , distorting, considerably 
v -' the^umal . relationship between . 
raw material casts and the actual 
price In the shops. ' 

Poultry producers' claim that 
. greater efficiency in production 
techniques has helped keep 
down the^ cost- of .chickens and 
turkeys.- But they .will readily 
, admit, that' ■ competition among 
retailers '• in the High ; Street Is 
playing an equally important 
part. It is estimated .that some 
; r 30m turkeys are soldi at' Christ- 
• 0> mas time- each year, of wbrh 
’ over 7.5m are the frozen, oven- 
\ : ready; turkeys so popular -with 
• supermarket shoppers. By buy-' 

- ing early -in the yeari allowing 
producers to plan their produc- 
tion schedules with guaranteed 
rales, the average -price. of m-en- 
ready turkey this year has been 
•. kept to "Between' 43-54n a lb, 

• =* only mareinanv higher than lost 
;'i- year.. ' But this achievement 
also means the shops cutting 
•s.' their profit margins- to a. low 
levefc . Y .... . .. 

y' Sates of “ fresh turkeys are 
‘r-’ 1 much smaller at between 2.25 
■ : to 2|m birds at Christmas, and 
. price are far-more erratic since 
lY their 1. vary as Christmas day 

approaches, and the demand 
rises and falls. CurrenJIy . the 
average price is between 64 p- 
75p a lb, but there is la., slight 
shortage of the smaller-stze 
birds since farmers have been 
tempted to fatten them up more 
this year and obtain a* higher 
return per . bird. 

Biit. of course, the price is to 
a large extent regulated by the 
cost of alternatives like the 
oven-ready variety; or chickens, 
whose price is also, much the* 
same as last year— between 
41-52p for frozen birds and 
54p-56p for fresh chickens. 

Geese have almost - priced 
themselves out of rthe' market 
at a £1 a lb for quality that 
can be unreliable;- -thicks' are 
not considered to be very good 
value this year either. - 

• Bad weather in California 
earlier this year is the prime 
reason why dried fruit prices 
have risen, and are expected to 
increase considerably more in 
the months ahead. Normally 
the state is the world’s; biggest 
producer of Thompson^ seed- 
less raisins, which xu-VBrifain 
are the equivalent of .sultanas; 
they both come from seedl?ss 
white grapes. On'avera^e 
Ca 1 ifornia produces . ■ 220,000 
tonnes of “ sultanas.” but this 


Turkeys (frozen oven-ready) 

Chickens (frozen) 


Beef (fore rib roasting Joint) 
(sirloin Joint) 

Lamb (fillet end of leg) 

Pork (fillet md of leg) 
Apples (English russets) 

(Golden Delirious) 
(Granny Smiths) 

Pears (Conference) 



Dates (glove boxes) 


This year 

Last year 

This year 

Last year 







Grapes (Spanish) 



64— 75p 

60-67 p* 


3 0-4 5 p 




Grapefruit (Jaffa and Cyprus) 

7— 18p each 

6-18p each 

54— 56p 

48*5 fp 


4— 12p each 

3-0p each 




4-1 4p each 

4— 14p each 






1 18p 



22-28 p 

28-34 p 

87 P 


Peaches (South African) 

3 5-50 p eadi 

40-50 p each 

10-1 4p 


Almonds (solf shell) 


40— Op 



Brazil nuts 




18-26 p 

Chinese walnuts 




25-3 2 p 





20-24 p j 

Filberts (Italian) 



T5— 22p 

24— 34p 

Brussel sprouts 

8-9 P 

14— 15p 

18-2 Op 

- 2D-24p 








28-35 p 



Christmas trees (average) 

30p foot 

70 p foot 

65 p 


* Estimated 

year's crop is only about 60,000 
tonnes as a result of violent 
rain storms in September just 
when the fruit was lying on the 
ground to dry. This disaster 
has meant that the U.S. instead 
uf being a substantial exporter 
or dried fruit is having to 
import this year and has already 
started doing so with supplies 
from Afghanistan. 

Sultana crops In the other 
main producing countries — 
Turkey, Greece, Australia, 
Afghanistan and Iran — are 
much the same as usual, but the 
UK Dried Fruit Trade 
Association estimates that 
the world is some 120.000 
tonnes short of its normal re- 
quirements of sultanas as a 
result of the Californian 
disaster. Naturally other pro- 
ducing countries have put up 
their prices. 

The market price for sultanas 
has jumped by £2S0 a tonne in 
the past few months to £850 a 
tonne and trailers believe that it 
will move considerably higher 
in the months ahead as supplies 
become exhausted. Currants, 
which are only produced from 

black seedless grapes in any 
quantity by Greece, have also 
risen sharply in price reacting 
to the shortage of sultanas. 

Fortunately for Christmas 
shoppers competition among 
the leading grocery shops means 
that sultanas are still being sold 
at between 37p to 39p a pound 
drawing on old stocks, when the 
replacement cost is at least 50p 
a pound. Once these old sup- 
plies run out it can be expected 
that prices will rise substanti- 
ally, The effect of higher-priced 
sultanas is already being felt by 
the manufacturing industry 
which uses an estimated 60 per 
cent or total sultana supplies 
in cakes, biscuit* and other 
food prodruts. 

California is also primarily 
responsible for' an e.vlremc 
shortage of almonds. Heavy 
rains reduced pollination of the 
trees, which had previously 
been hi! by two years of 
drought, cut output of Cali- 
fornian almonds this year to 
77.000 tonnes compared with 

141.500 tonnes in 1977 and a 
five-year average output of 

105.500 tonnes. 

The world almond crop at 
191,000 tonnes is not. drastically 
lower because of much bigger 
production in Spain, but the 
problem is of supplies being 
available in the right place at 
the right lime and quality speci- 
fications. Almond* in the shops 
are now costing between 70p to 
80p a lb— almost double last 
year’s price. 

Brazil nuts arc also in fairly 
short supply and costing 65-70p 
a lb against 50-60p a year 350. 
Tbe reason for the shortfall of 
supplies is much more difficult 
to identify. nuts are not 
grown and harvested in llie 
normal way. they simply grow* 
wild in the Amaz.’.n region of 
Brazil, fall tu the ground and ■ 
arc collected by casual workers 
filling up a boatload of the 
"husks” in which the nuts are 
contained. It is an arduous 
task giving poor rewards. It 
would appear that the collectors 
are increasingly being attracted 
to other, better paid, work 
becoming available as the 
development of the Amazon 
region gathers pace. Some 
Brazilian processing factories 

were forced to close as early as 
the end of July because of a 
shortage of supplies. 

Prices of other nuts are 
affected by tbe shortfall in 
almonds and Brazils, but there 
are fairly modest Increases for 
filberts (hazel and cob nuts) 
and chestnuts. Much to tbe 
relief of the trade and annual 
Chinese walnut boat bas arrived 
safely and prices are only mar- 
ginally higher. 

Overall, however, fruit and 
vegetable traders are expecting 
bumper Christmas sales as a 
result of plentiful supplies and 
lower prices. It is estimated 
that fresh vegetable prices are 
14 per cent lower than last year 
and fresh fruit 11 per cent 
cheaper. This compares with a 
rise in the cost of all food of 
around 7 per cent in the past 
12 months. 

Good weather in the past year 
bas boosted production of bome- 
gro-.vE fruit and vegetables con- 
siderably. Root crops are in 
particularly good supply, so are 
Brussels sprouts — the traditional 
British favourite vegetable at 
Christmas — and they are virtu- 

ally half the price of a year ago. 

The shortage of potatoes has 
been replaced by a big surplus 
in the past two years and prices 
are very' low. 

Imported produce is affected 
by tile abundance of home- 
grown supply, even when there 
is not a direct alternative. Cheap 
apples, for example, mean that 
oranges cannot be too expensive 
since housewives switch from 
one to another. In. fact citrus 
supplies are good. Satsumas, 
the seedless tangerine much 
favoured fur putting in Christ- 
mas stockings, are cheaper this 
year because of a good crop 
in Spain, and Israel is stepping 
bp sales of an alternative, with 
good “ peelability,” called 

Israel is also pushing fresh 
dates as an alternative to the 
traditional "glove” box dates 
that come from Morocco and 
Algeria, via Marseilles. Cali- 
fornian dates in tubs — claimed 
to be more hygienic — are also 
challenging “glove” dates. 

Grapes and bananas are 
cheaper this y ear. but the big 
fall in prices is with apples. 
Some home-produced apples are 
half the price they were last 
Christmas when supplies were 
scarce following a very poor 

crop, especially of Cox’s. This 
year there bas been a much 
bigger crop, although it must be 
admitted that some of the 
quality is poor. This means 
that imported aples are cheaper 
too, so are pears even though 
this year’s crop of Conference 
pears was not too good. 

In spite of some rumours to 
the contrary mistletoe, which is 
largely imported from France, 
is iu good supply and so is holly, 
which is fetching about 50p a 

However natural Christmas 
trees are more expensive, with 
the most popular smaller trees 
in short supply. A four foot 
tree — now considered the most 
popular size — is likely to cost 
between £3 and £4 instead of 
£2.80 to £3.60 last year. The 
average price has gone up by 
lup 10 S0p a foot, but this is an 
average including “ tops ” 
(without roots) and a *’ sleeved 
and blocked ” tree costing more 
like £1.20 a foot. The shortfall 
in supplies of “ natural ” Christ- 
mas trees is attributed to 
growers reducing their plant- 
ings as a result of competition 
from the “ tinsel and wire ” 
imitation trees, which it was 
thought would gain a more domi- 
nant share of the market than 
has actually happened. 

It takes eight years for 
Christmas trees to be produced 
from seedlings so the effect of 
the cutback in plantings is just 
starting to be felt. In recent 
years demand for trees has gone 
up by some 20 per cent, but it 
will take some. time for growers 
to boost output sufficiently 

The growth in demand for 
natural Christmas trees in the 
eyes of some traders confirms a 
swing back towards more tradi- 
tional Christmas goodies. This 
links with a tendency for more 
natural fresh products. If this 
is true then shoppers should be 
well satisfied this Christmas 
since it is factory’ products that 
will carry the main burden of 

1 “'i 

Letters to the Editor 




- \ 

Mr. M. Jmrie - 
■I am employed at the 
pal grade in a fringe body 
civil service. I abhor the 
weapon,, believing in 
negotiation with re- 
if necessary, to arbi- 
©. . .. Otir 1979 pay 
itions present me with a 
•turner dilemma. . • 

e pay research unit (PRU), 
WhCb your readers, will know 
is-, fen- independent, body, - is 
during figures showing -.the 
' of .direct analogues in jtfae' 
ate . sector. Indications • are 
this .would justify an 
iase in excess of 20 per cent 
[ fc my grade. The Government, 
tx it Labour or ' Conservative, 
! w 1 probably insist on 5 per 
c< t or cash limits. The dif- 
ff ence is the extent to which 
tl private sector . has found 
\wys round ‘ successive phases 

0 pay restraint during the last 
tree years.’ If we accept the, 
5 >er cent guide lines the 1980 

1 U will show an even greater 
dfereiice (the private sector is 
rot so . inhibited). There will 
1 valid reasons to restrain that 
sftlement so the 19SI PRU will 

unacceptable and so bn. In 
meantime executive officers 
be qualifying for Qovero- 
tal assistance, for -those on 
pay. and the level of quality 
ited to the cMl service 
decline further. The service 
t attracts . grudging admira- 
from outside our 7 shores, 
d which you have, come to 
ct, will be on a downward 
iraL ‘ 

^Perhaps I am too pessimistic., 
-^haps- the Government -Will 
pt the dvif service as a 
c?se (because of the 
mparahility dsnect) and settle 
e 1979 PRU findings in. hill 
r in guaranteed stages, 
haps It will fallow - arbltra- 
n. Indications are that it will 
0 neither. My -union.- is. asking 
Eme to be prepared to strike. 
“Have I any ■ justification for 
refusing? - -- 

SL Imrie, 

2 High Streets ... 

Toller Porcoruih, "■ 

Dorchester, * 

Dorset . . . 

schemes could justifiably- claim 
that they • too should have 
equivalent tax relief. We would 
then be in a different biff game. 
We would no longer; be con- 
cerned with who owns industry 
and how those who work in it 
can achieve financial participa- 
tion. We would be up against 
the awful problem of Kow_to 
provide tax relief for. genuine 
** savings,” when some - of - the 
savers may be merely tricing 
funds out of one pocket; and 

certainly maintain thar their 
view of the public interest must 
take precedence. This is a 
major reason why it is so 
difficult to feel any confidence 
in the future of large-scale 
British industry, except as an 
institutional substitute for 
J. P. Richardson, 

Humphrey's End. 

Rectory Lane, Stevenage , 

From Mr. E. McGraw. - 
Sir,— I refer to your article 
on the annual statistics on social 
trends (December 14) in which 
you report that '* The most 

puttings them in another pocket 

where tax relief is provided.'. A j j 

As anadviser, My. BeUis per- All OVerCrOWdefl 
Baps over-reacting- to. therein- z “ 
pricks', felt initially ;ty .finance pOIintrV 
•directors’ Who are ephitetned > WUUW J 
with' ' administering y a ‘ share 
scheme for employees, but in 
my experience onol-bf the great 
benefits of the mlw profit sbar- 
,iEg legislation is that finance 

directors who have spent years 4™*^ myXh to be demolisb- 
- thinking mainly of money sud- ^ . 


The statistics from Social 
Trends might show that the UK 
has less people per square kilo- 
metre than Holland, West 
Germany and Belgium which 
although correct distort the fact 
that most people in the UK live 
in England (46.5m out of the 
55.9m) and England is not only 
more densely populated than 
any other country in Europe, 
but is, with the exception of 
small island states, second only 
to Bangladesh as the most 
crowded territory in the world. 

Notices which say “ Please do 
.not walk or play on the grass ” 
or "Save our farm from the 
M24 motorway ” capture the 
dilemma of a country like ours 

be placed on the other statistics 
culled from “Social Trends.” 
Of course, many of them are 
not compared with situations 
abruad but only with those at 
other times here. It does, how- 
ever, seem clear that the Ger- 
mans, Belgians, Danes and Irish 
drink more beer than we do. 
and the French and Italians 
more wine . . . perhaps they can 
afford it: that is a cheerful 
thought for Christmas!. 

2-i, Chichdier Rems. 

Chancery Lane, WCC. 

Chancery Lane, WC2. 

nel problems. After the initial 
pinprick stage they like their 
new role and this must surely 
be of -benefit to future industrial 

Lawrence Brennan. 

Gopeman Paterson, 

23& Tavistock House , 

Tmistock Square, W Cl. 



From Dr. C. Oppcnheim 
Sir,— Recently your corre- 
spondence columns have 
devoted some space to the ques- 
tion of indexing patents. One 

point that bas not been stressed ; X^Tand £ sTSStei 
is the fact that a patent repre-. WJlere land 15 so bnuted. 
rents a bargain between the 
State and an inventor. The : 
state grants 2 monopoly, and in 
return the inventor must reveal 
all he knows about the inveft- 

.CBut it is title constant pressure 
to produce more goods from 
limited resources in order to 
pay for our food bill, and the 
demands this makes on tbe 


Pr--- ■ 



From Mr. L. Brennan. - 
Sir,— The letter (December 
15) from Mr. D:.- Wallace Bell, 
director, of the Industrial Par- 
ticipation Association, betrays 
an impatience with employee 
shareholders as if they were a 
greater nuisance than other 
shareholders. Every big com- 
pany’s share register, contains 
the names of people who have 
lost contact with the company. 
It would surely be inequitable 
•to force a departing employee 
to sell shares merely because he 
might lose contact, -when- other 
people who have never worked 
for the company at all can re- 
main as shareholders and lose 
contact if they so wish. 

Mr. BelL’s second point, about 
the “ administrative bufden ” of. 
industrial democracy, which he 
apparently hopes to -reduce by. 
encouraging employees to sell 
shares after, five' years (subject 
to full tax relief then) 
also runs up against the prob- 
lem of -equity. As the law stands 
now, the tax relief provided is 
equivalent to. about another 
font per cent return on the in- 
vested sum end this can possibly 
be justified for a locked-in 
situation. If the tax relief were 
.greater, people who do not work 
for companies with share 

tijon. The purpose of publish- ^ world community, which should 
ing patent specifications is re-: convince your readers that we 
that tiie public can read all the are an overcrowded country, 
details of the new invention. "By '■ Erie J. McGraw. 
reducing the quality of patent Population Concern, 
classification, the -Patent Office - Margaret Pyke House, 
is reducing the -access to patent 27-35 Mortimer Street, VI. 
information . and 'thereby they-, 
are weakening their side of the' ■ 
bargain. ; . : „‘V 

. Mr. Arnot f December 6) men- : 
tinned that there is no statutory . ; : 
requirement compelling the . 

Patent Office to maintain an^ . 
effective information retrieval forom Mr. J. Glyn Barton 
service for the' public. It- is high ' \ f -Sir,— Pleads Joe Rogaly in 
time this became a statutory .’earnest in his article of Decem- 
requirement .and I would ,wrir 'fcer 14? Or could it be he is 
come any moves in this diree-.' expertly manoeuvring to cheer 




Dr. C. Oppenheim, 
(Lecturer in Information 

The City University. 
Northampton Square, EC1. 

• us all up for Christmas? 

•- -f: As unit trusts, for example, 
- know, one can produce a very 
different picture of performance 
T - depending on the date taken as 
1 Ta- baseline. In quoting our rela- 
tive-position on infant mortality, 
-the article choses the period 
-between 1950 and 1975 to place 
■us ah&ad of xtaiy and west Ger- 
many— at least I think that is 
From Mr J Richardson tbe period, it is not absolutely 

^--The letter 1 December clear- What is in fact the broad 
14) from Mr. JffcDowall of .^riRy? When the National 
British Shipbuilders provides -a ^ Health Service came into being, 
pleasantly sharp frustration of lead most of the 

th e unlooked-for and damaging and areociated 

Corporate plans 
laid bare 

consequences- of. mining con- 'Jitters- But wbat a detenora- 
cepteof social welfare or demo-: hon has taken place since, 
critic accountability: with busi-. ^y we have a higher pmr- 
nes«! ' - ■- -- v centage of morbid and handi- 

n Unlike the corporate plans ; . «Pgfd births than any county 
of iS or GEC, those" of British' c ~‘” ' w 

Shipbuilders * are concerned 
with the future disposition of 
“public money” .and are there- 
fore - absolutely fair game for 
comment in the interests of 
“open government" or to- 
morrow* more fashionable 
catchword. The same problems 

pSlBto have^i’c"”?^ ^ their .asters in Eimpe: 
mere on the boards in the guise With these examples. I am 
of worker-direciore — who will : npt sure what credence should 

inrEurope including Spain. Our 
.standards of maternity services 
mad pre-natal care are years 
behind places like France and 
Sweden (for example, tbe 
absence of the simple but vital 
nutrient test of pregnant 
mothers, in all but a very few 
"areas). Perhaps most dramatic 
of alb our women die younger 

Looking for 

From Mr. M. Blakvston 

Sir,— Mr. Rutherford’s views 
(A time of uncertainty. 
December 8) are. I suspect, 
shared by a large number of 
people. I doubt, however, 
whether many would express 
them in terras of such sweet 

Mr. Rutherford talks of the 
lack of authority of our party 
leaders.' This country, as the 
issue over whether or not to join 
the European Money System bas 
made clear, is currently at a 
cross-roads. It has to decide 
whether it bas tbe abilities, and 
the will, to remain In the fore- 
front of industrial nations, or 
whether to continue in gracious 
decline and end up in pride of 
place among countries currently 
regarded as emergent. 

There are three important 
things in this country’s favour 
at present. The limitation? of 
demand management as a means 
of creating wealth, have at last 
been recognised, and we. can 
therefore concentrate our efforts 
where they should always have 
been concentrated: on the supply 
side. Our revenues from North 
Sea oil present us with a unique 
opportunity to re-equip . our 
ageing industries and invest in 
new products and technology. 
Tbe micro-chip revolution offers 
the chance for our industries to 
u leap-frog " our. current lack of 
competitiveness - and start on an 
equal footing again with our 
leading competitors. 

Of our present political 
leaders, only Mr. Wedgwood 
Benn has committed himself to 
an industrial strategy involving 
investment -on a massive scale. 
Mr. Callaghan seems to be 
edging towards it, and his hesita- 
tion over the EMS is, hopefully, 
one of politics and timing rather 
than lack of conviction. Mrs. 
Thatcher, leader of the one party 
one would expect to be taking a 
lead-in the matter of increasing 
national wealth, has so far sel 
her face against Government 
intervention, and will be relying 
on industry to regenerate itself 
by the simple . expedient of 
getting Government off its hack. 
It is possible she is right, hut 
the evidence is not encouraging, 
and to many people this is just 
another variation of the “free- 
dom ” created by the last 
Conservative Administration, the 
results of which are not likely 
to be forgotten — or forgiven — 
for some time. 

■_ One thing is, I think, certain. 
The country is looking for 
leadership, and its current mood, 
given the disarray among the 
parties, is “a plague on both 
your Houses.” In the next 
election the economic situation 
will emerge as the central issue, 
and the electorate will give its 
support to whichever party puts 
forward the most convincing 
proposals for halting, and revers- 
ing, the - country’s decline. If 
neither Mr. Callaghan nor Mrs. 
Thatcher does this at least one 
of the ' beneficiaries could be 
Mr. . Wedgwood Benn. 

M. P. F. Blakistoa 
90. York Mansions, 

Prince of Wales Drive, SW1I. 


EEC Foreign Ministers’ meeting 
in Brussels consider report on 
General Agreement or Tariffs 
and Trade (GATT) talks: and aid 
for steel industry. 

Acriculiurai Ministers of EEC 
in Brussels discuss fixing farm 
prices, and improving wine sector 

Meeting in Brussels. EEC 
Environment Ministers pian 
policy for environmental 

• Rhodesian Parliament re- 
assemhlcs :n repeal all racial dis- 
crimination legislation. 

Australian Prime Minister, Mr. 
?JaIeoIm Frasc-r, on official lour 
in the U.S. 

■ Turkish Prime Idinister. Mr. 

Today’s Events 

Bulent Ecevit, in Sweden on 
official tour. 

U.S. Treasury gold sales in 
Washington — 1.5m oz on offer. 

Last day for posting first class 
Christmas mail. 

International court of justice at 
The Hague decides whether it 
has jurisdiction in dispute 
between Greece and Turkey on 
Age an Sea oil rights. 

Sir Kenneth Cork, Lord Mayor 
of London, attends Turners' Corn- 
pan v dinner at Apothecaries' 

Health and Safety Executive 
annual report published. 

Department ' of Employment 
publishes December provisional 
figures for unemployment and 
unfilled vacancies. Third quarter 
provisional gross domestic 

Final dividend: Northern 
Foods. Pterion's (Scarborough) 
Porvair. Westinghouse Brake and 
Signal Company. Interim divi- 
dends: County and District Pro- 
perties. Diamond Stylus 
Company. Electric and General 
Investment Company. FMC. 
Laurence Scott. Plysu. Stanhope 
General Investment Company. 

Tex Abrasives. Interim figures: 
Hazl c-woods Proprietary (third 

H. J. Baldwin, Winchester 
House, 100 Old Broad Street, EC. 
11.30. Clyde Blowers, Living- 
stone Street, Clydebank, 
Dumbartonshire, 11. Hartley 
Baird, Winchester House, 100 Old 
Broad Street. EC, 2.30. Jenks 
and Cattell. Park Hall Hotel, 
Goldthorn Park, Wolverhampton, 
12.15. Moran Tea, Tea Brokers’ 
Association, Sir John Lyon 
House, High Timber Street. EC, 
12. Morland, Ock Street, 

Abingdon. Oxfordshire, 12.30. 
Yorkshire and Lancashire Invest- 
ment Trust, Bank House, 
Charlottet Street. Manchester. 12. 

Ws’re proud of our failures. 

They’re one of the reasons why we’re so good at our job. 

Group 4 standards are the highest. Right from the start. 

The material that goes into our uniforms is only the very best — as 
95 out of every 100 of the people we interview will testify. 

And the 5% who do make the grade are subjected to a total security 
Training Programme which is second to none. 

We’re every bit as particular about the equipment we install. From 
buzzers and alarms right through to master control systems. 

fn fact, our Quality Control, testing and checking procedures are so 
comprehensive that we could be criticised for being over-cautious. 

But jn our business you can’t be. 

We’re part of the largest security company in Europe and the world. 
With over 70 years of experience behind us. 

We’ve a reputation to protect 

. ' And in a funny sort of way, it’s our failures that keep us intact. 



Giving the world a sense of security. 

, Member o: bSIA 

Group 4 Total Security Lld.,7 Carlos Place, London W.1 . Tel: 01 -629 8765 or your local office through Yellow Pages. 

Companies and Markets 

rol profits surge 
nine months 

REPEATING tin? achievement of 
thc’ : same period last year, Tri- 
cwitroj has more ihun doubled 
pre-tax profiis for the firsl nine 
months of 197$. from £3.4di to 
fi.Olm, despite oil production 

The Thistle Field produced 
13. dm barrels or oil in ibe nine 
months, Tricen trot’s share being 
1.31D2 barrel 5, giving a pre-tax 
profit of £3.6m. 

Production was below predic- 
tion because the number of wells 
completed was below forecast, 
the directors say. No crude has 
been sold on Tricen tool's behalf 
in the third quarter. 

The reduced rate of drilling 
will result in fewer production 
-wells being drilled in 1979 and 
has reduced the opera-tors' esti- 
mate ‘to 45m barrels — Trlcentrol. 
4.3m barrels. Severe weather has 
limited production in the last 
quarter of this year. 

The group has been able lo 
improve its financial position by 
renegotiations of its medium- 
term loans. 

As announced last month, the 
refinancing of a substantial part 
of the Thistle Field loans has 
now been successfully completed. 
In addilion. a U.S.silIm loan for 
seven years has been signed w;1h 
the Royal Banl; n r Canada. 

Of this sum. S£Mim has been 
used to repay other group loans 
from the Royal Rank of Canada, 
while the balance has been used 
to increase the capita lisation of 
European companies. 

In commercial activities in the 
UK. third quarter profits of 
£0.7m were depressed by supply 
difficulties in several businesses 
and usual seasonal weakness 
in lhe garden trade. 

The automotive division con- 
tinued to perform well in the 
third quarter with profits for the 

first nine months topping £2m. 

Nine months 

110.735 70,401 


UK Oil and 'jas 9.531 — 

North fimonca: 

Oil and gos— Canada 3.411 3.697 

„ -U.S. Z152 2.323 


Auicmative fP-55 38«2H 

Trading 23.709 17.036 


Trading . 6,519 6,423 

Other activities: 

Mjnulac — Australia ... 355 344 

Tndinc-— Canada 1.092 2,367 

Operating companies... 110.795 70,401 

Profits: _ „ _ 

UV. on and gas 3.600 *78 

Noith America. 

Oil and gas — Canada 893 1.040 

—U.S. 874 1.060 


Automotive 2.043 1,203 

Trading 692 333 


Trading loss 300 t154 

Other Atimities: 

Manufjc. — Australia ... 47 20 

Trading— Canada loss 71 35 

Operating companies 7.7Z3 3,696 

Research expenditure 182 54 

Central costs ... ..... 351 200 

Interest payable ... • 238 339 

Interest receivable .. 254 5G3 

Operating profit ... .... 7.146 3.606 

Exceptional debits ...... 137 209 

Profit before tax . .... 7.009 3.397 

Tan 2.761 463 

War profit ... .... . ... - 4.248 2.934 

Interest _ 5 43 

Attributable 4.243 2.891 

Interim dividend ... • 329 * 241 

Retentions .. 3.914 2.650 

• Loss, t Piotil 

Travel group's profits improved 
further with ihe agencies again 
making a good contribution. 

Profits of the trading division 
in the third quarter, though only 
some £ 60 . 000 , represent a sub- 
stantial improvement on the 
corresponding period for apy 
recent year. 

Tricentrol Builders' Merchants, 
ben fi ring from tight overhead 
control and the branch rationali- 
sation that was undertaken in 
1977. achieved record results. 

Sales revenues in local 
currency terms in Europe are 

now running at about tbe same 
levels as in 1977. Organisations in 
Holland and Belgium are now 
able to handle more activity. 

The manufacturing group in 
Australia made a profit of £28,000 
during the third quarter* 

J. Jackson expands to £2.8ra 

INCLUDING A £4S9.100 profit on 
sale cf quoted investments, com- 
pared with £176.02$, pre-tax 
profits of J. and H. B. Jackson, 
metal merchant, advanced from 
£2.29m to £2.7Sm fur the year lo 
September '10. 1978. 

■At Lhe interim stage, when 
profits showed little change ai 
£l!2ra f£1.16ni). the directors said 
they expected the full year 

figure to show a modest improve- 
ment over last year's record re- 
sulr, without taking into account 
profits on investments sale. 

They now say that they eXpeet 
to continue the progress made 
over recent years. 

Yearly earnings per 5p share 
are shown to have risen from 5.6p 
to 6.5p and the final dividend is 
0.5133375p net. raising the total 
from O.9079p to 1.0133375p. 


Trading pront . 
loan stock .... 
Sale inw. profit 
Pre-tax profit . 


Deterred tax 
Net profit 

1 bis announcement appears as a nuttier of record only. 

December 19, li>73 


True Temper Corporation 

a wholly owned subsidiary of 

Wilkinson Match Limited 

Senior Notes due 1993 

The undersigned ar ranted tbe private placement of tbe above Notes 
with institutional investors. 

Smith Barney, Harris Upham & Co. 



Financial Tims TUB*® !»»»» 13 ,CT 




Date Corre- 
of sponding 





payment payment 





Feb. 19 





Feb. 9 • 





Feb. 16 





Feb. 23 




Feb. 23 










April 10 










Feb. 14 

r . 




Feb. 16 





March 30 

2.21 ' 



Feb. 6 




Sotheby’s pays 9p total as 


• comment 

Production from the Thistle 
Field was less than expected in 
■the third quarter and Trice n- 
trol’s profits from the field were 
consequently lower than those 
of the second quarter as -it 
takes its profist on a pro-rata 
production basis. Severe weather 
conditions have further hindered 
fourth-quarter production. But 
the field 'is now on the Brent 
system and. with the Sullom Voe 
terminal now operational, pro- 
duction should improve in 1979. 
I the U.S. and Canada, oil and 
gas profits were also down. The 
UK automotive operations, based 
on Ford and Vauxhall franchises, 
had a very strong third quarter 
and. at the end of the first nine 
months, were well ahead of last 
year. The Ford strike Is expected 
to hit the fourth-quarter figures 
and. as a result, profits from this 
sector are likely lo be down on 
the final quarter of last year but 
ahead of last year's full-year 
figure. UK trading profits In 
lhe third quarter were small but 
substantially better than the 

same period last year, while 
those in Europe added to that 
division's losses already sus- 
tained in the first half. With 
the prospects for the fourth 
quarter not particularly encour- 
aging. the rvnpany may have 
to struggle to reach the £10.5m 
analysts estimate. The shares 
at 155p are on a p/e of 9.6 and 
a yield l assuming the 25 per 
cent increased expected) of 1.6 
„ per cent. 

Dividends shown pence per share net except where otherwise stated. 

* Equivalent after allowing for scrip issue, t On capital 
increased by rights and/or acquisition issues, t Includes payment 
on ACT reduction, § Making 2p (I.lpJ to date. 

Siebe Gorman ahead 
and confident 

FROM increased turnover of 
£22. 55m against £19.11m, profits 
before tax of Siebe Gorman 
Holdings rose from £1.92m to 
£2.11m In the six months ended 
September 30, 1978. 

The growth in both sales and 
profits continues and the 
directors are confident this 
growth and progress will be 

The interim dividend is raised 
from 2212p to 2.4p— last year's 
total was 5.641 p from pre-tax 
profits of £4.47m. 

The first-half profit includes 
associated companies contribu- 
tion of £162,000 (£151,000) and is 
before tax of £881,000 a^iinst 
£957.000. Tbe group makes fire- 
fighting equipment and under- 
water products, industrial safety 
and survival equipment and 
leisure and protective wear. 




At September 30 the value of 
cash and investment stood 
slightly in excess of £4m. 

1977-78 197S-77 

C € 

Sales 22.732.453 19. =43. 511 

Trading profit 2.318,532 2.139.461 

AN unchanged final bonus rate 
of 30 per cent of attaching rever- 
sionary' bonuses is announced by 
the National Mutual Life Assur- 
ance Society. This bonus is paid 
on wiih-prjfit policies when they 
become ela'ras by death or 
maturity. The company has 

maintained this rate since July 1. 
1977. when it was increased from 
25 per cent and this latest 
decision reflects the static situa- 
tion of the stock market this 

National Mutual operates a 
biennial basis for its main rever- 
sionary bonus system, and the 
rates for the two years ending 
December 31. 1978 will be 

declared when the valuation 
results are available. The pre- 
vious declaration on endowment 
assurances was £4.20 per cent per 
annum compound. 

Friends’ provident Life Office 
is lifting the interim rever- 
sionary bonus ' rate on its 
personal pension policies for the 
self-employed from £5.30 per 
cent per annum to £5.50 per cent 
per annum compound. This is 
the second increase since the 
basic reversionary bonus rate 
was declared at tbe end of 1976 
of £5 per cent, and reflects the 
higher return ' of the pension 

Thus for a man aged 39 an 
annual oentribution £500 a year 
will produce a cash sum at age 
65 of £61,548, assuming this new 
rate remains unchanged, com- 
pand with a projected value of 
£58.841 on the previous rate. 

The company is keeping its 
interim bonus rates for ordinary 
life and endownment burners in 
the UK unchanged at £440 per 
cent per annum compound. 

AFTER AN advance from £1.94m 
to £2.44m at ’the interim stage, 
pre-tax eanaags of Sotherby 
Parke Berne t Group finished the 
year to August 31, 1978 well 
ahead from £4.S7m to £7.02m. 

Net auction sales. for (he 12 
months 'totalled £161. Im 
(£123 .94m) and gross revenue 
improved to £3L48m (£24,l9m). 

Tax takes £3 -37m (£2.44m) 

leaving tbe net ’balance tip from 
£2.44m to £3.65m. 

E am lugs per 25p share are 
shown to have risen from 23.9p 
to 33.Sp and the final dividend 
is 6p net for a 9p (5.0754p) totaL 
The cost of the dividend, ignor- 
ing waivers, 4s 981.000 (£553,219). 

On prospects the directors say 
that during the first four months 
of tbe current season net auction 
sales (excluding real estate) are' 
expected to approximate £72m, 
compared with £51.9m for the. 
corresponding period, an increase' 
of 38 per cent 

While the prospects for the 
next few months look encourag- 
ing, it is impossible r— given the 
nature of our business — to fore- 
cast .how the remainder of the- 
season might develop. There does 
seem, however, to be an Increas- 
ing awareness and interest in the 
international art market, not. 

least as a result of the continual 
and widespread' publicity 
attributed to auction .sales 
throughout the world. ^ 

See. Lex "/■ * 

result for 
S. Leboff 

PROFITS before tax of 
(Fobel) slumped from 
to- £20,214 in the first half of 
1978 but it is expected that the 
year’s profits will be very simnar 
to ’the £ 1.02m achieved last yean 

The interim dividend is lifted 
from 0.7683p , to 0-845p and a 
maximum permitted total is 
expected— last year’s total was 
L75 d. 

[Turnover for the "half-year was 
down from £9.1m to £8-4®- 
Following the change in deferred 
tax, • the directors consider it 
impractical to show a tax- charge. 

Results for the first-half are 
much in -line with those fore- 
shadowed in thB • aJMmftl report. 

the directors say. The DIY 
division has shown |^d 
over and profit. grow* *"*55? 
trend tas continued at /J* 
factory rate in the 
• . As known turnover of tne 
electronics divasion w^ wh. 
down on the first half 
. respi t in g an a suhstanoftl k*® 

■the. period 

During Jthe second half of lore 

electronics., manufacturing has 
' shown. -a 'consklerahle profit but 
heavy- research, nod development 
costs -CwiHch^^ra^wiitteM os 
they are incurred) and market- 
ing costs ,>rill ;51aost certainly 

profitable for -the. jpac.- ' : 0 _ 

The . liia?atida ;^?rfer^ 
the annual report - rs . not -yet 
resolved. While it is hoi'.’pdsfible 
to predict the.. 

amount Involved -ra^vwy. substan- 
tial it' must be.-iagjed.tfcit -£h&' 

outcome wall beiSgan^ttfe, -tiie' 
directors cay / ^ 

over - and profit^:'dfi : 4bp4"'Xjiy' 

. division -is -cteariy : get ts a 1 cpnl&dca' 
even more strpT^y'd^eailJtfTa.;. 
a much better- fpoeftfesr^W; eft 
the same time last; 
a goto' order hoolr • aa*d3«veiy 
prospect of a : sutiSsSftil -year; 
ahead.. j'T:;.'- 

British Sugar quota outlook 

28,887 30.3W 

489. ICO 176.028 

2.778.745 2. Z8 5,133 

301.851 2^2.919 

1.659.984 1.350.014 

Hanson Trust expecting 
long period of growth 

GROWTH AT Hanson Trurt will 
fontinue long into the future, 
S'r James Hanson, the chairman. 
♦el's rtnreho'ders and the groin 
has the capacity to nroduc* rn 
increasing retim and growth in 
earnings annually. 

Referring to the more than 
three times covered dividend, 
the chairman says thst as soon 
as it is possible, is intended 
to bring shareholders’ rrtura 
more into line with earnings 

Following two years of doubled 
profits, the group produced 
record pre-tax profits of £26. lm 
for the year ended September 30, 
' 1978, against £24. 4m. This is the 
15th consecutive year of 
increased profits, says the chair- 

' Had the sfcerling-doll2r ex- 
change rate been the same at the 
year-ead as at the beginning, an 
additional fl.Sm profit would 
have been reported. 

On a CCA basis, pre-tax profit 
Is reduced to £22.9m (£21. 5m) 
after adjustments for deprication, 
£3.5m f£2.3m), cost of sales, 
El.lm (£l.6mi and gearing, £1.4m 

The balance sheet is stronger 
with cash funds in excess of £50ci 
and net indebtedness remaining 

Although the group has not 
been able to invest in new busi- 
nesses in lb? UK to the extent 
it would have liked It has 
recently agreed to acquire the 
Henry Campbell Group. U.S. 
ooportunities abound and con- 
tinu’d nrogress is expected there. 

Meeting. Greit E?s*eri! Hotel, 
E C., January 17. at 11-30 a'.m. 

Williams Lea 
recovers in 
second half 

With EEC production quotas 
due for renegotiation by 1930, it. 
must benefit tbe British Sugar 
Corporation and the country to 
produce in excess of the “A” 
quota of 1.04m tonnes, Sir Gerald 
Tborley, the chairman, says in 
his annual report. 

As low cost producers, the. 
chairman says -tbe group feels 
entitled to claim that its quota 
should be increased “or even if 
others are reduced, that ours 
should he maintained." 

The present quota enables the. 
group to produce up to 1.3m 
t (fanes per annum, slightly in 
excess of the group's target of 
2 -25m tonnes. Ai the end of this 
fourth year of the five-year plan, 
the group will have 'installed 
capacity to process this target in 
a 120-day campaign. 

Increased sugar production can' 
be expected in the current year 
due to a larger area being drilled- 
to beet and higher yields' per 
hectare, the chairman says. 

Sugar sales - should farther 
increase and increased pulp r 
sales will help both growers and 
the group. 

In 1977-78, it was the third, 
year in succession in which 
sales increase d substantially and' 
means that the group is right -on 
course to achieve its aim of 

supplying half the nation's sugar 
by, 1980-81. 

Turnover for the year to 
September 24. 1978. rose , from 
£26S.27m to £304 ,22m and profits 
before tax were £25. 58m against 
£20. 47m. Profit was reduced to 
£13.4m. after adjustments for 
depreciation, £11.75m, cost ‘ of 
sa’es. £585.000 and gearing, 

The Government holds . some 
24 per cent of the group’s 

Meeting. Hyde Park Hotel, 
S:W., January 11 at noon. . 

Trust set for 
record year 

~y 'Profits of Gresham Investment 
“Trust improved from £453.0b0 -lo 
.£502.000 in *he s'x months ended 
September 30, 1978 before tax of 
. £167 000 against £166.000: •' 

And the board exDects that tbe 
percentage rise in the fir*rt h>lf 
profit— 10 8 per cent— w‘lV be 
maintained’ in the second, six 
months. „• 

Commenting on the' first half 
result. Mr. Prtir Wreford, chair- 
man, says the improvement is well 

. in.- line with .'what ; / 

.ing \wben he forecast ' Shf Aqgbist v 

- that record profits were expected 1 / 

• for the cturentyeari' ‘ i.-iV.-. 

- ’ ^The ’ interim ' dividend-- ik- 

by the maximum permitted; frmiS.: ; : 
fi.7i339p to j0.78661p.' j nie^tbta3'JiKd 
year was aoiBS^p-.ifromV pre-taif;- ’ 
. profits of ‘fl-Ofim.- ‘ vv' : -1? t v‘,' 
The first half , profit before 4aX 
does not include earnings oGcwpi ; ? - 
panies where the -group’s ra&rest '- , 
exceeds 20 per cent.' ^1- 

attributahle profits '(in-exws^pf; / I ; 

thetdrvidandsreeewed .firomi^nry . 

; had - - beer, wnsolidatedy '. wwp-.-- 
. profit would have fncreasedXInjm ■ ' 
[£502,000 . to- £734,000 0582,060).^: . • 
Capital profits for 
months before . tai: but- aftecgmpr; .. 
visions amounted- to £650,00^- ;•.!; . 

Net' asset ; value as at. 
ber '30 after adjusting hstM'-jn- ;; 
v’strnent.s and unllstedrnwfest- 1- 
raenrs to market value*; £and 
directors' valuation • respe$ftg&: . 
and allowingfor tax oh uhreUnsUd. 
profits, was ^0p per share. - ! 

The ■ group^ is, in a ' vefy'^^nfl 
position^ ihe chairman says. Seabe . 
35 per cent of the net asset yaJUe ; 
is at present represented by '^sh, > 
gilt-ed*ted aecuriti'-s and store-*’ 

' term deposits. ' . iV-: : 

This- means that the groi^rJs - 
well glared to -meet .any demand: 
for finance from industrial -and -! . 
commercial companies or vom- 
*urr~ss?v\ • private coaipchteh • 
needing an Injection of share aqd 1 
loan caoital 

U kr' I 

A* * i 

Second half pre-tax profits of 
£510.657 against £415,300 lifted 
tVl'llams Lea Group, printer, to 
a record £734,791 for t be year to 
October 1, 197S compared with 
a previous £715,541. Sales for the 
period rose from 17.66m to 
£9.1 lm. 

Mr. David Donne, the chair- 
man, says the group has made a 
much better start to the current 
year than last year, and the 
directors feel confident of a good 
performance, “ provided there 
are no disruptions from any 

The directors are recommend- 
ing a final dividend of 122.16p per 
£1 share, making a total of 

221. 21p. 

The chairman says that the 
first few months of the year 
under review were adversely 
affected by tbe financial priting 
section of the business, resulting 
from the sudden reduction in 
work concerned with Eurodollar 

During the yeiT the company, 
which is unquoted, spent nearly 
£750.000 on plant and equipment 
and has plans for a further 
investment in new technology 
during the current year. 

This advertisement is issued in compliance with the Requirements of. the Council, of ., t J a- 
The Stock Exchange, it does not constitute an invitation to the public to subscribe for 1 “ 1 1 
' or to purchase any of the Shares: • . 

Associated Dairies Group Limited 

(Regis^red in England No. 1396513). " 

117,808.084 Ordinary Shares of 25peachfuHypaid- :'0r/ ! > ■ - Vf 

. ~r : ~ l . • * ^ -'r' • '■>'» 

1 ,911 ,980 9^% Cumulative Preference Shares of £1 each. fufly paid . -. vj’:- 

The Council of The Stock Exchange has admitted the above-mentioned Ordinary , yK 
and Preference Shares to the Official List •— ’ rv- ^ 

Particulars of the Company and of the Ordinary and Preference Shares are available ; :><i 
in the Extel Statistical Service and copies may be obtained during normal busiuess f 
hours (Saturdays and Public Holidays exceptkl) up to and including. 2nd January, . ; ftp* 
1979, from: T 

. A - ''cfh 7 - 

Baring Brothers & Co., Limited' 
88 Leadenhall Street 
London EC3A3DT 

J. & A. Seri mgeour Limited 
The Stock- Exchange . 

London EC2'N1 HD 


Approximate Trading Results 

Six months ended Y ear ended 
30th September 31st March 

1978 1977 1978 

(unaudited) (audited) 

rooo £’000 £’000 

Turnover 48,313 43,436 93,942 

A! Ghurair Con Ire. Dubai. 



Brent Cross 



pi^tTjll>,i Knrhoue 

Ahonafan Shopping OjA'. 

Minolrv oi 'A«i. 









1,475 1,108 


DungoresSi Power Station. 


That w.ord describes our activities as well as our results. 

Our predominant activity is the provision of electrical and 
£ mechanical installations. Crown Hovm Engineering Ltd. provides : 

^ a complete engineering service for the construction and ; 

‘ manufacturing industries covering electrical, heating, ventilation , t 

8 plumbing, air conditioning, sanitation and fee protection - 


Some of our past and present contracts are fflusfcratedbelow. 
W e also merchant the electrical equipment used by ' 

5 installation contractors and by industry generally. ‘ 

Through our subsidiary, Dema Gloss Ltd., wehave - , 

•1 important interests in table glassware and can claim to be the 

largest U . K. manufacturer of highest quality- crystal glassware • 
(Thos. Webb and Edinburgh Ciystal). Denaa Glass also distribute 
1 wm over 100 million maehine made glasses each year r about 

half of which go for export, 
f I I All in all, very impressive ! r 

H Crown House Limited, 2 Lygon Place, London SW1W0JT. 

QfOWi^ Telephone: 01-730 9287. Telex;918$02. 


National Theatre. 

Museum of London. 

Heoflvow Airport 


; HJADodcysfl, 

tewiijpart. .' 


Bristol PbMechnfc. 



>bu may not see us, but w^re Iriera 


■ December 19 1978 


lVP-^-1 ! o-° 

sees full year 



: 'U 

Vn. ' 


; - i J ’ 


f THE DIRECEd&S of A." ittw* 
t and Com tony, ervll engioeecand 
: building .contractor, ; say .pretax,' 
profit? for..- '.tbe ' \yeqr .to 
Feb ra ary 23, W9 are unlikely 
: to exceed £3m't»3fany sfcaiiicanr. 
sum.; '-.v- ‘ j. 

! - In the prwioW fuU year, , a 
i £2.73m surplus was struck after 
? a-imtm .prorisioii affain^t trad 

. las deJjtjfine 

- subsidiary. Petrjr Monk £agiceer* 

; lag and Cortfraeting^CtoBjpany, ■ 

; ’ Taxable profits -= for- 1 the kali; » 
r year to .August' 31, 1978 were 
£1.26m, -compared with £0.97m 
which was after, a £lnr Nigerian 
provision. - Turnover '■rose.' from:- 
. £38. Im ^ £4lite^ L; .r- j -. 

‘ '.In the .tZS^iirsfrhaif 'tredlijg 
. result* .fee lowru thm.tepeeted: ' 
: and stuo& ^‘per^eTUbsiiow 
earninjtt of'ttie sdme perfod last-. 

; year, the directors state. ; 
f Siclays in . the settlement of 
! contracts completed in prior 
i years reduced the anticipated 
! profit act rumg -from this eoiirte 
[ and margins - on- current work 
: have come under -pressure. -The* 

- directors believe these - trends 
• will continue for the. immediate. 

■ future. '• - 

Ineittdod in' -.-the 1977 r 7B. 
accounts was';' eun' amount', of 
' £450,000 on ■respect of the cost 
of the acquteatuou last February 

- of DMJ end ^ils- associates. Sown - 
ever, draft accounts «£ these ^cgot- ' 
patties os at May 31, 1978 show 

a net asset defimoney of. £658.000 
1 which dias teen .treated: as part . 

1 of the <cosf ■«£■ tjhe toves&neut. ■ - 
The Joss toomred at arriving 
at this deficiency will form .the 
baste of ciaimi under . the . piir- 

Crown House 

cfjase Agxeesneflt5,'sW 11*0 direc- 
tors. ' - • 

At tWs «ta«; they.-W ft is 
not possible <to ^estimate the out- 
come of tfcess^cfebn*. ®Of to 
quantify the amount. 'that may 
need to be wati&rten off as an 
. extraordinary -toem.* 7 : • 

TtenUug losses' since. 
tflon, of £50,000 barns : been in- 
cluded in tetetfcn - - 

Overseas, : activities f '.'of the 
Nigerian subsidiary proceed on a 
limited b?si& : -- -Despite regular 
submissions to .the Authority 
concerned, little progress has 
been made -do settlement; for the 
contract fur the ' reconstruction 
of; the Ikorodn and - -'Airport 
Roads..:- •• 
la accordance with , the' pro- 
visions for the Nigerian' Enter- 
prises Promotion Decree, 1977, 
this subsidiary will be c ame so 

per cent Nigerlantowned' after 
December 3J, 197R and arrange- 
ments, to effect this have now 
been made. ■ • :-.t ' 

After tax o/ £657,000 ^£503.000 ) 
and minorities, £40,000 (£32,000), 
attributable profits- for thij period 
expanded . -from '.£432,000 to 
£567.000. - ' ’ 

The interim dividend fa main- 
tained at lp net per 25p share, 
costing £208,000 (same J — last 
year's. final was 215085p. . 

for three months with effect from 
December 9, 1978 at 13 per cent 
Per annum. 

Bros, sees 

of Christy Brothers, the mecha- 
nical and electrical engineering 
group, were up £6,000 io £74,000 
for the six months to Sept- 
ember 30, 1978, the directors wurn 
that die lull year figure is not 
expected to reach the previous 
year’s record levef. when a 
£211.000 surplus was achieved. 

They say that despile a con- 
tinuing demand for the. company's 
total range of products, the loss 
of certain contracts expected for 
the second six months has caused 
them 4o view the immediate 
future with greater concern. 

Stated pre-lux earnings per 25 p 
share are 3.7p (4.2p). and 3.4p 
(3.8p) after ta,\. The interim divi- 
dend is 0.87p (0.6Gp> net and the 
directors expect to recommend 
payment of a final— last year’s 
final was 2.144p. 

WJTH TAXABLE surplus up 
from n.llm to £1.4Sm on turn-, 
over of £4S.31m against £43. 44m 
for the nix months to September 
30. 1078, the directors of Crown 
House expect a further advance 
in profits for the full year com- 
pared with 1977-7S, when a peak 
_£3.2!9in was achieved. 

Conditions in contract 
engineering and in merchant mg 
remain competitive, despite 
reasonably buoyant demund, 
they state, while trading in the 
remaining areas of the group has . 
shown a satisfactory improve- 

The group's interests are in 
electrical and mechanical 
engineering and contracting, and 
table glassware manufacturing. 

A second interim dividend of 
1.5Sp net makes a total of 2p to 
dale, compared with a Up 
interim last time— the 19i*-7S 
final was 2.28p. 

After lax of £0.77m (£0.58m> 
and minorities, half-yearly attri- 
butable profits advanced from 
£0.53m to £0.7m. 


Tne l 3 l. compjiiin havd noii- 
lloii dams ol Board nun.i:i,.js 10 ihe 
Slock E -change Suc-i meutinas aru 
usually held tor tl.t- purpuiD ol tg«- 
sidenno dividend-. Otlic ai indications 
are not nvailablu as iu whullier divi- 
dends aio m !; r i m«, or hoot* ar.-d the 
sub-d.visions sl>u-jun bolaiv upu based 
mainly on lair year's t>mctablo. 


Inlbnnw:— Cu-jpcr luiiusitios. Cojmiy 
nd District proacrtics.. □icmonc.' S'tvius. 
Elec eric end General invL-euncnts. FMC. 
Lauicflco Scdi< Pi.-au stanhono end 
General Investment. Te- Abrasives 
Finals;— Nnrihchart Investments. 
Northern Fojtis, plactons COcur- 
baroiiuht Porvair. '/.'dstlnyhousb Brake 
and Signal 


□anks Gowcrtcn 

Norton and Wr.--,:.- 
F Inals:— 

Cron i U 

V/estland Aircrntt 

Dec. 20 
Jan. 4 
Doc. 21 

Dec. 31 
Jan 10 

First half 


Scottish Northern :JoveslraPiM 
Trust , has renewed , its loan of 
U.5£ 3.5m from Clydesdhle Bank 





1977 1977-78 












i'Kcroar oayabla 




Profit tHJfOro tax 








N«»i profit 




Cut'BOnl doblL-i 




Diyttisnria . - - 




Lea vi nt) 




Turuovar . . . 


. 48.313 




Profit before hut 



Corporation Id*. . 



Entraord. debiiG 


Minority loss . . .. 






Prolorrntui div. 






Retail icd 



from the completion or two 
property projects in the period- 
Moreover there is a slight pos- 
sibility of a dividend increase 
greater than the 10 per cent 
allowable but tins involves con- 
vincing the Treasury lhal the 
euver in 1972 exceptional. 
Tbe shares clysrd unchanged at 

* Alter depreciation on freehold pro- 
per Mas €53.359. Previously depreciation 
on freehold was chai-jori only m 
reaped at Middlo East, and amounted 
to tT7.670 
t Profit. 

t>3lfj .yt'stcrUa.i giving .-t pruspec- 
live yield of at least SS p^r cent. 

N. British 

v b. . i r.'U.ta 

Extracts from the Chairm an’s St atement 

oyra ridding requirements. We expea this will 
takc ahcrat, twelve months and will limit the 
profitably of Cee-n^Cce in die meantime. 

The competitive conditions in the retail food 
trode last year have tested the Group. Our 
abiiiry to show increased profits is confirmation 
that our policy of permanent discounts at all 
times will; continue to benefit customers and 
-shareholders alike. 

•7 Whife itiis too early to make any forecast of 
tare capital of Cee-n-<>e Supermarkets pipfits &r thej)resent financial year, trading is 
™^ «*itH'opcrate6 f '49' r discSiir3:' ^rocery ’’ a satisfactory level and taking into 

m Lancashire, Cheshire and. in. the ; acocitint' the benefits of full integration of 
[ Potteries, where we were not well reptcsented- ' (^e-n-Cec, the Board look forward to the 
We are reorganising Cee-n-Cee to suit our ^.ture with confidence. 

. ; Turnover increased by 27.% from £152401 
i 1 1977 to jCr 92.9m this year, while net -profit 
l sfore taxation amounted- to £9.710 compared 
i i ith £8.6min 1977, an improvement of 13%. 

Tlie main , expansion during the year was in 
Midlands, South West and South Wales., 
irty-rwo -new stores were opened malting a 
^atai of 15 s - at 2nd September, 1978,' tbereby 
creasing the net selling area to r^)2 5,000 sq. 
On 37th September, 1978, we purchased the 




., FIVE YEAR REC0R0 (f 000'^- 

1974. 1975--197& W7 1978 , 1974- 1975-.;i976 1977 1978 

Copies ofther-eport hnd-accoimts are available from tfie Company Secretary. 

tr r»i . « T ! 3..J "T. rn I T T _oti 

Kwik Save Discount Group limited^ Warren Drive, Prestatyn, ClwydLLi? 7HU 


Nassau> Bahamas 

Announces the Establishmoitof a 
Representative Office 

20-24 Mooigiafe/ London EC2R6DA 
Telephone: 01-638-1541 — Telex 881 2369 

European Representative S 
PatricfedeVailee . 

Vice President ...... 


is owned by f 

The Royal Bank of.Gaiiada 


ffiHdmboWLMont^ &Co^Incorporated 
The Royal Bank of Canada I ntemational Limited 

• comment 

Profits from Crown Hoase’s 
glassware* division jlinipcii 40 ppr 
t-enl to £747,000 in I he first half 
and eclipsed, for the first lime, 
the profit cuniribuiion nf 
£695.000 from lhc cumraciing 
division. The glassware jump 
relied? strong demand, ibe open- 
in'; of neiv "shops within shops " 
retailing Crown House glassware 
ami the repackaging of cheaper 
products previously sold to 
hotels, which has proved attrac- 
tive to general consumers. On 
the traditional electrical contract- 
ing side, revenue rose from 
f34.1hi to £36.5m with margins 
at 1.9 per cent. These figures 
show Lhc* pressure on margins in 
the UK where comp?; Hi on for 
coulracli .is particularly fierce. 
The outlook for the sveond half is 
hrighior with trading activities 
buoyant. Pre-tax profits will 
receive abou ta £5U0,0U0 boost 

Steel tops 


tax profit of £1.1.4 •! ni for North 
British .Sled Group I Holdings ) 
resulted in the rul! year figure 
to September u0. 1S)7S ahead from 
£0.Hfn to ri.dlni. on safes of 
£9.9Stn against. IS.73in. 

At the interim stage- the 
directors said that rf the company 
could attract sufficient husirj'.'ss 
fur its heavier range of foundries, 
it should achl.-VL- profits equal tu 
the previous \;-ar. 

Stated earnings per 25p share 
rose from u, S.7:i ami a final 
dividend of } ,1tifi75:7. 'neluding 
payment on Ai.'V reduction, lifts 
the total from l.S15p to 2.02G7Gp 

After tax uf £0.5 jin against 
£0.47 m. net profl'.s increased 
from £0.4 3n 1 to £0.-lSm. 

Sharp gain at Bremar 

MAINLY DUE to substantially 
increased activity in dumestic 
banking and corporate finance 
services, operating profits of 
Bremar Holdings, the unquoted 
banking and financial group, 
more than doubled from £4S0.oHt> 
to 1963,510 for the six months in 
September 30, .1978. 

Mr. Erwin Brecher, the chair- 
man. says indications arc that the 
progress is being maintained for 
Lhe rest of the year. 

For the previous full year, 
profits reached a record 

After tax, exceptional items 
and minorities, firsl-half profile 
improved from £360,975 to 

At the half year, shaich ciders’ 
Tunds stood at £S.lltn (£5.69w at 
March 31. 1978). . 

They point out, however, that 
the rate of progress shown will 
not be sustained in the current 
half because of a significant de- 
cline in the margin^ ailninalitc for 
optical products, uilicr activities 
indude thr- manufacture of garden 
implements and hoi Iowan* 

Sales for the first half improved 
from n.ntin to £2/Sm. After 
tax of £54,000 (£30,000), the net 
prufiv came out at XaD.OUO, com- 
pared with £30.000, for stated 
••amings of 2.4 p |1.44pl per share. 
To reduce disparity, the interim 
dividend is raided from 0.6.10 to 
Ip— last year's final was 1.5p. 


Sotheby Parke Bemet Group limited 

Summary of audited consolidated results for 
the year ended 31 st August, 1978 

The direetbra of Sotheby PlaifeBeimetGrt^ limited ameumee that lire atidilrf 
consolidatedxesults for tiie year ended.3istAogiffltil978 are as set our beIow(tx^ptha: 
■wirh corresponding figures for the previous year). 




Net Auction Sales . 


Gross Revenue. 


Eamings before taxation 





£fiss;U.K. Corporation Tax . 
Deferred Taxation^-, 

Overseas Taxation, 








Earnings after taxation 


Earnings per Ordinary Share. 


£ 2 AS7 


*3ZJp if a fuB year's t&tridatd had bgaipaycMa on thcPr^fereacs Shares. 

Dividend on Qrdinaxy Shares 

The d i r e ct or s arc recommending a final dividend on the Ordinary Shares ia respect 
of the year ended 31st August, 1978 of 6p per share, which will be payable on 2nd 
February, 1979 to Ordinary Shareholders an the register an zsth January, 1979- 
T his, mgether With the interim dividend of jp per share, makes a total of 9P per 
share, which when added to the tax credit imputed in the United Kingdom, would 
produce a gross equivalent of i3-432Sp per share. The total net cost of the dividends on. 
xhe Ordinary Shares for the yeaii ignoring any^ waivers* would amatmeto £981,000 

Current Season X978/79 

During the first fora months of^ the entrent seasonthe net auction sales of die Group 
(excluding real sales) are expected to amount to approximately £72 million, 

compared with £51,910^x30 for the first four months of last season, an increase of 
3 8 per cent. 

The following are p-gtrartg from fftafrmfln* *: S tatemeot whidi will accompany 

the Accounts: 

“Whilsr the prospects for the nest fewmonfhslook encouraging, it is impossible — 
given the nature of our business —to forecast how the remainder of the season might 
develop. There does seem, however, to be an increasing awareness and interest in the 
international art market, not least as a resale of tbe continual and widespread publicity 
attributed to auction galea throughout the world : our activities are reported daily in. 
several national newspapers in the United Kingdom and now weekly in the New York 
Times , There is also frequent r ef erence to the auction scene in numerous periodi c als and 
on television both in this country and overseas.” 

“Nevertheless we have no cause for complacency and we are well aware that our _ 
business remains extremely competitive. Moreover, as our main activities are in locations 
where rates of inflation persist at high levels, we have constantly to face the problem 
of increased costs in a business whidi is labour intensive and which will continue to be SO 
as we seek to improve the personal service that we provide for our dienrs.” 

Accounts and Annual General Meeting 

The full .Report and Accounts and Chairman's Statement will be sent to Shar eh ol de rs 
early in. January, 1979, 2nd will be available on application to the Secretary, 

Sotheby Parke Bemet Group LtcL, 34/35 New Bond Street, London W1A2AA. 


The Building and Civil Engineering page is published in the 
Financial Times every Monday and carries news items relating to 
contracts and important developments in the Construction Industry. 

For details of the advertising space available on the page 
each week, and costs, you are .invited to telephone 
01-248 8000, Ext. 360 or write to: 

Financial Times 
10 Cannon Street 
Loudon EC4P 4BY 

British Vita 
applying for 
dividend boost 

The directors or British Vita, 
the foam products company, are 
hoping the Treasury will allow 
them to afve shareholders 9 
larcei 1 than . normal dividend 

The Board is expecting to be 
allowed to count for dividend 
cover purposes, some £l.Sm 
profits from the group’s 50 per 
cent share in the Nigerian com- 
pany. This is despite the Fact 
that the share was reduced to 30 
per cent after that company's 
year-end in September, but before 
British Vita’s calendar year-end. 

This could give scope for an 
increase fn dividend of about one- 
third instead of the standard 

Mr. Farnley Parker, the chair- 
man, says the group was caught 
with a low dividend when divi- 
dend restrictions came in. “We 
have been looking for a way to 
break out, although*! would not 
want to pay a dividend in one 
year that we could not repeat in 
Che next” 

The group is well pleased with 
its recent Caligen Foam acquisi- 
tion and looks likely to seek more 
takeovers in its field. It has a 
five-year growth plan and is 
hoping to achieve a target of 50 
per cent profits from UK and 5(1 
per. cent overseas by .l9S0. 

E. Elliott 

RHP's profit before interest and tax 
was £4.8m compared with £6.4m 
in 1976/77 said Mr John Eccles, 
Chairman, in his Annual Report to 
Shareholders. Pre-tax profit was 
£3.8m (£5.8m; of which £1.9m 
(£1.5m) came from MTE. 

Cash generated was £6.4m and the 
cash requirement of £5.3m showed 
a reduction of two thirds. As forecast, 
there was a cash inflow, totalling 
£1.lm. Capital expenditure was 
£1.9m, compared with an average 
of £5.5m in the previous two years, 
but is expected to be somewhat 
higher this year. 

BEARINGS held market share at home, 
improved overseas. 

Stocks were virtually static in 
monetary terms during the year, 
which represented a volume 
decrease when measured against 
cost inflation. 

MTE, the electrical company, again 
increased sales and profits. 

PHILIDAS, the fastener company, 
saw a second half recovery. 

For the half year ended Sep- 
tember 30, I97S, profits of 

E. EUioR have advanced by 
£41,000 io £104.000 and the 
directors are looking- for a .satis- 
factory result for the full year, 
against £2474)00 In 1977-78. 


AGNEW - GALLERY. >13. Old Bond Si.. 
W.l. 01-629 Hi 76. DRAWINGS FOR 
Mon.-Fil. 9.30-5.30: Thun, until 7,00. 

BROW5E A DARBY. 10. Cork St.. W.l. 
JOHN SALWAY — Circu* Pictures. 
NORMAN ADAMS — Flower Pictures. 

OMfU GALLERIES, 40, Albemjrle Street.. 
Piccadilly. W.l. ANNUAL END-OF-YEAR 

Bona Street. London. W.l. 01-49B 54B7. 
6.00. Sau: "10.00-12.30. . Closes 
December 22nd. 

Street, London. W.l. 01-491 3277. 
INGS UNDER £3.000. Daily 10.00-6.00. 
sals. .10 00-12.50. Closes December 

THE PARKER -GALLERY, 2. Albemarle 
Street. Piccadilly. W.l. Exhibition of Old 
marie b. military and soortlm and topo- 
■ graphical prints and paintings and sbfes 

RHP Bearings continued to hold its 
market share in the UK although 
there was a fall in demand. Export 
volume improved despite the 
strengthening of sterling. The 
underlying demand for bearings 
remains strong and there are now 
clear signs of the relative strength 
of demand-and supply moving in 
favour of the manufacturers. 

MTE continues to increase its 
market share and the further growth 
of this strongly managed business 
is being actively promoted. 

The year ended on a better note 
than it started, concluded Mr Eccles. 
The present year has opened with 
some signs of promise. There is a 
more encouraging order book than 
last year and some improvement in 
results is foreseen. 

Copies of the report are available from 
the Secretary, Ransome Hoffmann 
Pollard limited, PO Box 7, 

Chelmsford, Essex. 

® 3182166 

A V 'S ■ - , • 

m - f.y--.- i: 




£ Companies and Markets 



British Steam 
£lm midway 

ON A turnover increased by 
19 per cent from £14.5810 iu 
£17.;J8in. profit before lax of 
Brtli-Sb Steam Specialities Group, 
specialist supplier of pipeline 
equipment, advanced 34. S per 
cent from £913.000 lu £1.23m in 
the hair-year ended September 
30. 1978. 

After lax up from £475.000 to 
£640.000 net profit rose from 
£438.000 to £501.000. 

The net interim dividend is 
effectively raised from 1.38p to 
3.5p per 20p share at a cost of 
£155.000 (£141.0001. Last year's 
total was equivalent to 4.67 p. 
paid on record pre-tax profits 
of £2.27 m. 

A final dividend of 1.5p cuts 
the total from 4p to 2p per share. 

seen by AA 



A. Continental 
Finance profit 
falls to £2.5m 

For the year ended -tune ."0. 
1978. profits before lax of Anglo* 
Orntinenial In le-sf jih-iiI and 
Finance, a subsidiary of Gener.ile 
Occidentale, tell from f.r.l.wi to 

The profit ineludes operaiing 
profit, of £4.71 ni i £2 SHm i and 
associates profits. fii-iO.Oyo acain^t 
£.VF>6m and is a Tier central ex- 
penses of £2.!lm tL'imi 

Tax takes Il.tWm lELfinii and 
after minorities of £.'i44.(ji>U 
l£46fi,000i and on extraordinary 
credit. £8!>4.n(m asainst a £2. "Him 
debit last lime, altrihutabie profit 
for the year umouiHs fn £l.07ni 
compared with a CNJHHI deficit. 

The dividend is 1.5p i nil r. 

Another subsidiary. I-'Iur in- 
vestment Company. reports 
profits doun from to 

£391.237 for 1977-7S before l3X 
of £20032 I £369.6*3). 

FOR THE six months to 
September 30. 1978. Anglo 

American Asphalt Company 
reports a slump in taxable 
profits from £254.000 to £3,000 
and a deficit of £17,000 at the 
attributable level. compared 
with a profit of £119.000. 

However, the directors are 
confident of a return to profit- 
abiliiy in the near future and 
are recoin ni ending an unchanged 
interim dividend of 1.065p net. 
Last year's total payment was 
2.6850 trom pre-tux profits of 


PM A Holdings, the furniture 
sruup. has agreed to issue 
187.500 -shares "(6.3 per cent of 
the enlarged capital) for the 
cancellation of all the £116.250 
nominal uf the secured loan 
slock 1976/79. 

Mr. M. Levy, the owner ot the 
to an stuck, will receive S7.500 
share and £62.000 cash, the latter 
to he raised by the placing of the 
oilier 100.000 shares at 62p per 

Mr. Levy acquired the stock 
qs ihe final instalment of the 
consideration for J. Ellman and 

Rotaflex expands range 
with Linolite purchase 

Bovis buys 
house builder 
for £4.45m 

For an initial consideration iif 
£Um. jBotafiex, the electric light 
fittings and systems manufac- 
turer. has agreed to buy the 
privately-owned Linolite concern. 

Linolite, which makes fluo- 
rescent strip end picture lights. 

could cost Rotaflex- up to a 
further flflQ.OOO depending upon 
Linolite profits performance in 
the year to March 31. 1979. 

Last year the group earned 
£285,000 pre-tax profit at which 
1im e net assets were said to be 
£671.500. Since then, however, 
'the group's main properly lias 
been revalued taking its book 
value up from £51 .00(1 to £202.000. 

Rotaflex will next month make 
a first payment of £900.000 — half 
in cash and half in shares. The 
balance i> due To be paid next 

The group said that the Lino- 
lite acquisition will fill in gaps 
in its range to produce a compre- 
hensive lightings business. It also 
intends to extend Linolite’s 
export operations. 

Capel-Cure Myers lias made the 
offer on behalf of Rotaflex. while 
Linolite has been advised by 
Morgan Grenfell. 

the food, brewing, and agricul- 
tural industries. 

art wallpapers 


Art Wallpapers, the DIY sub- 
sidiary of Great Universal Stores, 
has agreed to acquire Rose and 
Co. (Wallpapers and Paints) From 
Imperial Chemical Industries. 

Rose trades from 57 DIY shops 
in Scotland, the North. Midlands 
and ' South-West England. Art 
Wallpapers has 80 shops in 
London and the South-Eeast. 
Both companies sell a similar 
range of decora live. materials and 
geographically the acquisition 
will provide G.UJS. with a 
national network of DIY stores. 
G.U.S. in addition has a substan- 
tial market in DIY products 
through its mail order catalogues. 

become effective on January 26 
and dealings in the new com- 
pany's shares should start on 
January 29. 


Mr. Ronald Palfreyraan. former 
chairman of David Dixon, manu- 
facturers of woollen and worsted 
cloth, has sold his stake of around 
11 per cent in the group. 

Meanwhile, Dixon's rights 
issue has been taken up as to 
95.96 per cent. The balance has 
been sold at a premium of 13ip 
per share. Net proceeds, which 
represent 12p per share, will be 
distributed to entitled share- 


Diverse? has acquired the 
kitchen hygiene business of 
Albright and Wilson Service 
Products which comprises pro- 
ducts and services concerned 
with industrial machine dish- 
washing. cleaning and hygiene, 
and floor care. 

Diverse?'. which recently 
acquired Molsnn Industries nf 
t'anada. supplies cleaning and 
hygiene products and services to 
I the catering industry, as well as 
' supplying speciality chemicals in 


Belhavcn Brewery has 
accepted a £435,000 cash ofTer 
from Ellerman Lines for the 
freehold of two hotels and ilie 
long leasehold of a third, subject 
to contract. Bclhaven plans to 
use the proceeds in the expan- 
sion of its tenanted houses 

The hotels are currently leased 
io Ellerman Travel. They have a 
book value of £416,000 and con- 
tribute £36,000 annually to rental 
income. » 


Shareholders of George 
Wimpey and Co. have approved 
the scheme of arrangement 
whereby shares in that company 
wilt be exchanged for shares in 
a new bolding company. 

The scheme is expected to 


The offers on behalf of the 
Associated Dairies Group to 
acquire both Associated Dairies 
and Allied Retailers have been 
declared unconditional and re- 
main open for acceptance. 

The offer for Associated has 
been accepted' by- 9S.790.151 
ordinary representing 91.3 per 
cent and 437,409 preference — 
87.5 per cent. 

The Allied offers have been 
accepted by 94.2 per cent of the 
ordinary and 97 per cent of the 
preference capital. 

Associated Dairies Group in- 
tends to acquire compulsorily 
the outstanding ordinary and 
preference shares in Associated 
and in Allied. 

Bovis Homes, the house-build-, 
iog element of the P and . O. 
group, has acquired B-Vis Con- 
structions. a leading Midlands- 
based housing company, and two 
associated companies, for £4.45m. 

The acquisition complements 
Bovis Homes* existing building 
programme in the’ West "Mid-* 
lands. Commenting on the-B-Vif 
deal, Mr. Malcolm Paris, chair- 
man of Bovis says; “ this substan- 
tially strengthens our sales 
coverage in the area; providing 
us with two large, strategically 
placed sites in a region where 
demand for private housing is 
hich.** . 

B-Vjs is currently developing 
600 houses at Manor Way, Hales- 
nwen. ad has recently gained 
planning consent for 900 .* new 
homes at Oak Farm, Warmley. 

Other B-Vis activities, include, 
two public sector contracts Tor 
the housing corporation at Sut- 
ton and Wednesbury. Both are 
nearing completion. ■ ■ \ 



Lerex — Mr. K. MaJiarajb. 

managing director, is now 

interested in 194.000 shares. 

Tootal has increased its stake 
in Bradmill Industries, the 
Australian textile and clothing 
company, from 40 . per cent 1$ 
495 per cent 

The mov’e has the agreement 
nf the Australian authorities.. 
Tootal acquired its original hold- 
ing in March this year when .die. 
group said that the. acquisition 
would place its Australian opera-, 
tions on a more -sound footing. ' - 

The British group has acquired 
all its shares in Bradmill from 
Mr. Bernard Hendel, who says be 
wiil remain a major shareholder, 
in Bradmill. Mr. Hendel has also 
recently been buying shares in, 
another Australian' compaay.- 
Olympic Consolidated. 

new Act go 



i folk 

iK f11 


APPROVALS for the ■firet major 
near coal mine in the U.S: 
jutder the final . 'regulations 
promulgated to bring - into-' force 
thfe Surface- Mining' Control, nnd* 
Reclamation Act 1977 -have been 
received by Rocky Mountain 
Energy for a fi-3m tonk a ’ year 
.operation in "Wyoming, 1 
The pulling together of ... tlj e 
package of approvals., for; the 
mine- -on federal . lands repre- 
sents. Ahe start of a new: era for 

US* ccral mining. . . It look nearly 

Bank of Montreal 

Established 1817 

Condensed Annual Statement 

Condensed Statement of Assets and Liabilities 

as at October 31 




Cash resources 
Government and other 
Loans including 
Bank premises 
Customers' liability under 
acceptances, guarantees 
and letters of credit 
Other assets 

$ 4,881.000,704 







$ 3,869,825.733 










• 23,025,337,485 

Acceptances, guarantees 

and letters of credit 



Other liabilities 






Accumulated appropriations 

for losses 



Capital, rest account and 

undivided profits 




$ 25,175,394,690 

Condensed Statement of Revenue and Expenses 
for the year ended October 31 

income from loans 
Income from securities 
Other operating revenue 
Total revenue 
Interest on deposits 
and bank debentures 
Salaries, pension con- 
tributions and other 
staff benefits 
Property expenses, 
including depreciation 
Other operating expenses, 
including provision 
of $60,383,933 
($44,176,300 in 1977) 
for losses on loans 
based on five-year 
average loss experience 
Total expenses 
Balance of revenue 
Provision for income taxes 
relating thereto 
Balance of revenue 
after provision for 
income taxes 



$ 2.160,532,945 

$ 1,670,851,191 





. 399,918,644 












$ 193.515.710 

$ 122.023.700 

More than 1200 offices in Canada, ihe United States. United Kingdom, Continental Europe. Mexico. Argentina. Brazil. Venezuela. Australia. Indonesia, 
Japan. India, Singapore, Philippines, Hong Kong and the Republic ot Korea. Wholly-owned subsidiaries: Bankmoni Really Company Limited. Montreal: 
Canadian-Dotninion Leasing Corporation Ltd.. Toronto; Bank ol Montreal Trust Company. New Yorl. flank of Montreal I California). San Francisco: Bank of 
Montreal International Limited, Nassau; Bank of Montreal (Bahamas & Caribbean) Limited. Nassau; First Canadian Financial Corporation Ltd.. Hong Kong; 
First Canadian Financial Corporation B.V.. Amsterdam, the Netherlands: First Canadian Financial Services (U.K.l Ltd., London. England; First Canadian 
Assessor ia e Servi^os Ltda., Sao Paulo. Brazil. Associated Corporations and Organizations: First Canadian Mortgage Fund, Toronto; First Canadian In- 
vestments Limited. Toronto; BM-RT Realty Investments. Toronto; BM-RT Lid., Montreal; Australian international Finance Corporation Ltd.. Melbourne, 
Australia; Australia International Lid., Vila, New Heondes; International Resources £r Finance Bank S.A.. Luxembourg; Job. Berenberg. Gossler & Co.. 
Hamburg, Germany; BanqueTransatlantique. Paris. France. Banking correspondents throughout th® world. 


£.tecufrvc Vice-President 
and Chief General Manager 


The First Canadian Bank 

Bank of Montreal 

HEAD OFFICE: 129 St James Street Montreal. Quebec 

40’ years for- Congress to enact 
a /federal surface mining ‘law. 
The '1977 Act, with its regula- 
tions. Is the most comprehensive 
trf-all environmental measures 
.available to- regulate coal 
tfiinmg. : '. % " - 

-7'Ttocky Mountain Energy , is a 
Union Pacific unit. 1 Its Wyoming 
.operation js at . the Blade. Butte- 
-mine- -east of Rock Springs, and 
is V- joint venture: .with - Petjfcr 
Kiewit Sons Inc. - 
Initial production at Black 
Butte is expected at the .end of 
next ypar with full production' 
in 1981. Long-term contracts 
hive been signed for the output." 
Idaho Power and Light jtfill rtake 
3jzoT tons a year for 25 years, 
and:. Commonwealth Edison- of- 
Chicago will take . 3m ..tons . a 
year 1 for 20 years. - V : C.-. -, 

- ' Construction of tfie : opencast, 
-mine will start shortly following ’ 
:thel;approval ofa rninepjan.bjr 
.die. Department of the interior. . 
All-. "the necessary ‘ state, aid- 
federal permits have -‘ been 
-obtained. Rocky -. " Matujtaar 
Energy said. . . ■ ~ £i.‘ 

•..The -cost of develpprnentvhis - 
not been disclosed intt if Industry; 
Predictions about.' ttie-tm^ct 'oT 
:.the Surface Mining. Gbirtrel -aW' 
Reclamation Act are cbrrecf,iien' 
ihe price of meeting the;, ney^ 
radiations will have beeh sulK' 
stantiaL ' -/■£ : -. 

v. r.AIl indications are that thfcy: 
will be extremely. eSsienstv'e^d . 
comply with both in- terms. .'iff- 
dollars and man hgfirs. In fact 
it is not clear tJiat all ;,of. ;the.- 
new regulations cart be complied 
with.*’. Mr. Donald. IflhiripMeys, ': 
senior counsel at. :Utelr : Drter-f 
national told ttid" . American ; 
Mining Congress last October. •*. 

• A basic object of the Acf' fe"; 

“ to assure tba£ tie . co«tT supply 
essential to the natido’5" energy 
.requirements • and'./, to;. Its 
'"ecosomfc,-- and soeiai ;waiKbeing 
.Js. pro sided auid. strike^ a^bwance 
between^' /prdtecQSf ^ ? Ipfv ‘ Hte . 
“dttviroiraiettt ; and " agricultiifal 
productivity and- ;.tbe ; nation’s ; 

- seed for .'coal "'as.'- -ah": -essential - 

' soiraie -of «energ>y' v '- ' '■ '£-/?*. ..?? 

■ -To ' this en9^ thfe 'Act and* its .; 
TegulatioBS "Tay- doygv the : condll- 
‘ tfbtts ^ Anhler;.w]ii6& ; "miffaig fluff 
take -placeT aad' ihake provision .• 

" - for’ tHe reciashhitoh jo£ . XiSed-land. 
Mining"'. may : be- precluded^ if. " 
reclamation cannot take place in :, 
-a- -jf^bien- jneetihg . 'federal vie- 
qairemehts. . -j ” "• - •’ . ‘ 

Administration is in Ihe -lfands% 
; hf ; the • Qffico-- gf Surface Mining . 
Reelaraatihii- " mid ^Enforcement 
. within the Department of the.Jh-.’ . 

- tenor, 'and it-ly this Office "which '... 
haa ".been engaged iiE teolgtby con- 
sulfations "Vwttti^liffiustry: about ' 

" :-sBape" the final .■.Tejjnlar 
vtihns.; ]_■ ; /It- ; . - '■ . 

;■ The beparocnent.of fhethferlor^ ;. 
does have a 'c<Mjperativ e agree- 
meet wjth the state of Wyoming;, ; ' 
• 'which; gives tiie’ state-'a 'croicial. ' 

: role- -in the appikatiim -gf.- the V 
-regulations/ .. .-r . -. 

r ". It seems inevitable thaf Rocky -■ 
-Mndntsln. Energy, was caught up .; 

, nor " ; only >' . period - of 

■ tfDdeTtamtv^vheri- tbeffinal . regu- ' 

-. latiOBS : were 'beings uincked' but 

■ ■but also iti The vigorous affirtna- , - sjate of; its rr^it to r 
regulafory . " control , andJ\ its-;-- 
criticism ,of.;the-' in^nislMi. .of. the 

: new ^'DepartOient ; of Interior n - 

xiffi ce.: : Z-; : : 'i . '•••••' 

•; Tie industry tisetf has;-boen ' 

critical'ofrtteTST? ActtingareraJ 
. aiiditi^sppllcation^ i>arUiftul»r..- * 

: Au‘ Ainericau^'Mihing Congress. ; 
poll ; statement said- that legis- ,y. 
Tati on -‘“..wiil prove TmntcCsSarfly > 
restrictive” -*and charged That ■ 
'•“--many of tlie new -regHlatfons r 
are^un reasonable anfl Inflexible” :■ 
;1 Hbwever, ’VRocfey- Mountain. . 
Energy's apparent ’ success in. , 
combing; over the. obstacles goes ' 
'a sihaH way towards helping Ifee \ 
yicFarfr? meet Presidcnt -Carter's " • 
target of ^l^bn -tonnes of. annual > 
.coal; production" : by- 1985., r ; At 
.present output -is ninning : at : 
irdiiad h^f ; that target. • 

Sibeka out of Ashton 

BELGIUM'S Spciete • • ■ dTEfiter- . dtwm, 14p 4o . 62p while those of - 
T»rise et dTnvestiK&ments • Northero Sfining were lowered 
.fSibeka) has pulled of- -the ,17p to rap-and those of Conrfnc T 
Utio-Tinto-Zinc •" group's AfltUffii .-Riotinto ‘.fell ,Wp. to : 260. - Shares . 
-diamond exploration venture in' :bf^ Tanganyika Coucesmons held 
."Western Australiai No reason is ! at .164p- -,- " .. i* 

[ -erven bv the Belgian RrouP" fpr .- As a resitit of tbe realignment 
fts decision to its 7 per rtait of .shajefaokMogs, GRA^ intetest 
interest in the venture To Thfe goes^ up ; to 56:3 per .cent .from - 
other partner^. . . 52.6 per cent The Ashton Hinlag 

-. .vn,^ thiV he - onlv -a ^^ ~ c}la * s tO- 34A' per rent 

- -Tananst Proprietory, the -name 

dettsienTJh? the Tanganyika Mqlfi- . 

ings Rrierest,.goes4d 9J, per. cent-. 

fT I NT 

. . . . . . vv 

B,ely - to*. 

announced .. for -- the., sale " safe comes at a - 

A 55.04 in (£2^mV- wladi A £^.‘ a time wben^' the." venture his.-, 
value on’ the venture of A57Zm. ^ xeached an intriguing stagi. 

In Cirrn. tbis sugsested-.a value. ^Surface t&ting m- tbe explori-.. 
of AS16.13m for Ashtoit^ *9* has revealed - tte^ 

ing’s present 22.4 pe r cent stake V - 

in the vefiture/ or 23 cents per -..■ftoWonds^pr-.-mraedr lndustmU.. . 
per share of the company. T&fs^ ^ vand-t gent ^enough 
compares with the recent share £ n ™urase-:CRA to-7bqve in-to^ 
offer price of 50 cents. - .bulk samphng- phase. Buf hmf -.- s 

. . valuable;. or-,how : econonnc. the^i. 
In London yesterday, Ashton .-..discovery, ^wilt turrr out to be^ 
Mining shares were marked ' has' nor/yet beeb dete £mi n.ed i 


CO. — Inlartrii dividend 0.67Sp (0.6p) tor 
1978-79. Turnover £2.03rn for helf-yaer 
io September 30 (E3.5m (or year " to 
March 31.-..1978J. Pre-tax orofit 
£234.785 " <£350.9201. Tax £58.000 
fCG9.131). BoarcF expects mulls tor 
full year to justify final dividend of 
not lose thaA Iasi years payment of 
0.9p par shara. ' 

Turnover £1^48.000 f Cl .628.000) Tor 
six months to September 30, 1973. 
Pre-tax profit £42.500 <£68.7001. lax 
1122,100 ; £35,700) . Earnings par share 
l.Sp f2.3p)i- .flit. l.Op (same).- .‘PSy- 
April 6. 1 ..... 

Krvenue r' available hell year' .Jo 
October 3F r 1978 £151.133 (£123,688). 
attar tax £89.^52 f£B7,6B8). -|m.— 
already ahoouncad— 1.2p > (1,lp)- . Net 
asset value per xharo 141 Bp (141 .Sr 

N.M.C. INVESTMENTS — Pra-lax erofft 
lor half-year w September- 30, 1978... 
£102.058 (£79,706) after crediting profit 
on sales "*of invostments E38.946 
(£39.907). and dividends and -Interest 
£38.912 (£28,8031.. etc. Tax £34.534 
(£23.859)'.- “ Minorities £5.164 (£3.904). 
Propp Corntgatod Cases had another 
very aattstactory half-year. Trohi. 
betore tax, £45.803 ‘ (£36.916) - and 
management ere . expecting record 
profits - 101- • die year. . ■ 

— No misd m (same). -Turnover half- 
year, to SStrtembej- 30,. 1978, £88.000 
f £11 4.000) Pro-ta* profit. £600 (E4.SQO) . 
No ax (£900) Poor results due to 
continuing . recession in' iron and Eteel- 
irades ' bot-l business has now started, 
ro rncreas*. : «»!d Board hopes' that, 
second 'half' wtir show an improvement. 

November 30, T878>.~net. asset' value of. 
ordinary sMros was 2£6p. 

Special dtyidwd; of .3c. a. shore -io 
obviate pevowPt of- undistributed profits j 
tax. Drvfdend payable, on ot.- about 
March 30, '1979. This -is special pay-’ 
merit end should, not .be- kuerprotod as - 
interim .dividend. . . ' • r . 

JOHN S WAN AND. SONS — Turnover 
C39AV?0 .'■.(€338.230) (or : half-year : ro 
October '31 ,- 1978.' - Profit £78,600 '• 
(£88.100) -after ell charges including rax 
of £85.000 i f £73.700). Warnings par 

ShSV 4gA p.~(40 .6pl.- 

income ' £207.553 '(E2T0.R11 ) for' half 
year. td. September 30. 1378.". Pre-tail', 
profit EJ52J8& (£154685). tax £54.843' 
(£57.538). ^-comparisons adjusted, in 
continuaoon of. group policy, far roe- 
sqns .ot-. r «5bm>my. board will not 
declaim an interim dividend: H o wev e r. " 
it is lu fly- .expected that year’s results ; 
will be wch'.rhai maximum dividend 
Dermiitsdr, : by- present- legislation 'Will', 
be 'declared- -for current . year.-'. 

C4.36V.ei6. (E3.829.K8) .for half-year 



" August . 31, T97B. - r Prd-iax pro fit --C ■ " 

'• £245 .565 ' <£267,2D1).'\TncJucling. . ronbi’";T, ; .' 

£075 (£615) and after... depreciation.' 

s- C15.DCO ' (£13.366),. mortgage., interest 
.-£1.600 (£1.686). and -banfc' . interest ^ 

£5,636 i£6,700).-' - Ttx 'j- £128.008^"-- ' 

(£138.000). ; - Rotafned - E105.245 2lr',''.'-' 

f£1 28,491). : ln6Brinr -4.0p \(nin pel- ; ' 
December ,J8.. In "view-”-flf ' small., r.--’ - 

number of transactions . which uka - 

. place -in the company's -5 Tper - cdiu '* ‘ 1' 
cumulative preference shares, end 
_ 7 1 * P«r cent cumulative A ahahw. bbani.^ : 

•is. to apply .for listing jjf.ttiesB. tens i 
stocks to bo cancelled. f— -. 

POLLY PECK (HOLDINGS)-— T urnovor T i - s 
lor «is m onths to September ig, .1973, - 
-f5 , ^ O0 «!? 55,cl S!3 ,( * rb i , P' WatDi’fl toes 
■ £25.000): ...No "intBrun 1".. 

- drvrdflnd -Job me).; Xoss -par . share 
; .D54p- floss- 0-48p) 'Board -antloipBtt ,1-.: ■ 

■ . prppts for year to March '19, 1979. will l--' 1 - 

. LAGANVACe ESTWTF— - Turnover for - 

• year .Apni -30r' : 1978r'-C380 20S" I 

, N <i r foB3-£S,-K26 f £54, 851) 
after- mtarest ..E26.19T f£73,4K).- cic. - 
,^ are u I2-7D). Board 'O-; ! 

-*■* lunber safes; of .properties 
have w ken place sines, .-die. and of 
«« year,, thus -reducing- the- amount* 1 
due. to creditors and han)ara. ' 


-intenm dividend n.-134p (0.132p) ««. 

mootte to Septemow 30, .W78 Profit . 

^rrl'^t ( S55I?L toafo f« W* £8,115 
ipmpanaon should not 
bo mads for two halt year* because of • 
changes, in. Jovestments^. . nor ire 
._«quros.neNMdserit*- a to/,, if yoar ! 

OwulO^ In addition, company Incurred 
^professional foes totalling C3.740 in 
connacnon .-w«h-th^ n9v made for • 

Ibr eftaroe- !n May. These have not - 
eoan me udad ,0 managemant expenses 

but w<U be, dealt -with In vast s 
accounts. -Wet asset. rahi»- pj - 
ordinary share 2038n £1».8Rt>\ . 

, G. T. ASIA_. (STERLING) . FUND— «et_ 

' w September 30 T97B ' 

..was 1274.610. - - • . - ' 

_ m AlBCMlXH ■ STEFf^ *OfVS 
fshiprepalrar. and- KiglnqHl^CcQt' ol '- 
-mamtsirring and operating "pipflUaeo"- to 
we end 6f .November has' been, - fully :. 
raooverad in. the .rents' t3>BrgM and by , 

IiueihesSF- ~ .f* 10 *- Jnerins. rturraa - 

V. R 'jppelfijph la maliriMinsct to ; wd ! oI - 
^wranctal year, as .is expecred.^intajidad ‘ 
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-business,- ttuiu nues.- successful- -Bnd -• 

• Aritjcrpaxed that Turnover Tor. iha .yKrr . 
ynii be £250.000. ' ■ 

chair man. said ■ he r wbbj- conSdehr^of ~ ' 

/.increased . . profits ■ for firn . _ fi alLi^' .tfew . t . 

.-nail -efi vision.- -hr - N.E/. 'England'-' had -•* 

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CDfflflanaS'am^ HadST-V ’ ' ::f *' V.’.' 

nokthamerican news 


follow? J, ri i 
Kennetotf ~ 

Pitney-Bowes emerges as 
suitbi* for Dictaphone 


- - ^ 

of Ash 

* NEW Y0R3Mhdus*ry obser- 
S: ’ veils '. reacted : WitSiba _mixtUTe 
| - of - surprise' and scepticism 

today to Friday*,® apwnmce- 
jf -• menr by ■ Kenaeeott - and . 
- J Curti»Wri€»t :flurt they had 

* K called .a mice- to their nine 
J month long. prosy' fight f And’, 
f ;it:WBs:not immediately jelear 

i ...which side, if. aj&y, had won. 

' -Surprise ax the ‘apnquwteri*^ 

: _wa& mainly due .tOritfie bitten- 
y. ness widt which', the- battle 
£=.' ■- had been. fougJrt.-. J ttwu^*’th* 

? recent change at chairman of 
re Kehnecott .- .-Qb^on5ly _ .hatf 
fnmjawiy- y atf.-uiutvlt-; 

K. . Scrptidisra/ the .outccnpe 

* . *>f tflff:tSSEO-ye»c trace centres 
EL on'tifetnftfcrteta projects for 
f' xesolutioh a£ the Carborun- 
dum issue. 

Keunecott. it Is. felt, would- bo 
i seriously harmed by divesti- 
E- ture, because it has- still- not 
g- got itscopper operatisns back 
r . on a soilnd footing. Curtiss- 
Wright on the other hand,. 
K - stm firmly believes tbe. coro- 
f pany should be 'sold off. r .. . 
■Kennecott'sshareSopened?L25 . 
, - down yesterday on news of 
t the truce. .. . . r . 

i On. Friday,. KennecottWhich is 
; - thelargest-D-S.copper Com- 
1 pany with sales of more' than 
i \$L7ba a year: ago,- disclosed 
p 1 ' that it had ' agreed to a com- 
T-‘ plete restructuring of its main 
&- - Board in order to -secure a 

L. ..temporary -truce fin Its bitter 
P feud with Curtiss-Wright. - 

f Rennecott. said that through a 
r. combination- off resignations 

I .. and: “ Board action.” Kenne- 
cott and Curtiss had agreed 
on the- election of a joint list 
of directors, which includes 
teu-pMsent Kennecott Board 
. . members, three nominees 
-:from -the list proposed by 
: -..Curtiss: in May and ..four 
nominees “mutually agreed ” 
^-ona of the latter being a 
Curtiss Board member. The 
>' last- Board place would go- to 
Mr. - Thomas --K. *- Barrow, - 
elected to the -Kennecott 
f - Board recently. . 

I Curtiss bolds only. 9.9- per; cent 
I <jf the Kennecott equity but - 
}• this has- proved fbcal point '■ 
p'- - around: whieh dissatisfied Ken- 
k -. - Aecott shareholders rallied at 
t - me annuel meeting in May. . 

| -Thfc truce -now reached includes 
i - 'do i agreement by Ourtiss not 
[ p -. increase ' its Kennecott - 
■ . ‘bolding above 21 per cent and 
{ - for both parties to end litiga- 
! 'jjon associated with the proxy . 
-'ibattle. • ' r - 

NEW YORK— The identity of 
the mystery, --suitor for Dicta- 
phone, the: pfflce’\ recording 
eqidpxnenrma^ervwaa disclosed 
yesterday iMonday ** “ 

Ptoey-Bowes, another leader in 

the . office equipment field. best 
known fqir- Its- .mail.'-' franking 
machines. - • V 
Dictaphone^ ■■■ \ hoard was 
considering 'Pitney .- Bowes* 
approach, which it described as 
‘‘aa>aeqiiisrtion offer/ 1 ' 

; ^ .According to. a compftny State- 
ment Pitney . is proposing a 
two-stage transactlon-VThe first 
would be a cash tender of $28 
a share- for up to 2m iff Dicta- 
phones'. 43m shares. The second 
would be a merger involving the 
exchange.: of eaefe/. remaining. 
Dictaphone share for one share 
of newly authorised; ; Pitney- 
Bowes convertible cumulative 
preferred stock, with * liquida- 
tion preference of $38 and a $2 

annual . dividend. Each share 
would be convertible Into, and 
vale as, one share of Pitney- 
Bowes common stock. 

The offer is subject to 
approval by the boards of both 
companies, and Pitney-Bowes* 
review of Dictaphone’s sales 
and earnings projections. 

■ The deal puts a value on 
Dictaphone of about $120m. 
representing . a premium of 
about 38 per cent over the 
$20.25 at . which Dictaphone 
shares were suspended on 
rumours of a takeover last 

If the merger goes through, 
it would create a major com- 
bined concern in the office 
equipment field, with head- 
quarters conveniently located 
only a few miles apart on the 
New York-Connecticut border. 

It was not immediately clear 
what anti-trust issues the 
merger could raise since the two 

Corco optimistic on outlook 

SAN JUAN ^Jfcanufigs of 
$20m for 1979 ijy; Common- 
wealth Oil Refining Company 
are possible and. annual earn- 
ings of S50m are * “realistic 
target” for subsequent years, 
Mr. Howard Hardesty Jnr., the 
chairman of the Commonwealth 
Reorganisation Company, said. - 
Commonwealth filed a volun- 
tary petition under -Chapter II 
of the Bankruptcy Act ia San 
Antonio. Texas, oo : March 2. 
and has since operated its oil 

refinery,, and petrochemical 

complex la Puerto - Rico as 
debtor in possessioiL 

The Commonwealth 

Reorganisation Company was 
commissioned by CORCO. its 
creditors and the bankruptcy 
court on July 20 to decide 
whether the business could be 
economically viable. 

Mr. Hardesty said the $20m 
earnings figure was possible if 
CORCO makes recommended 
adjustments in management 
operating plans and procedures, 
and certain other conditions are 

These include the continuing 
co-operation of CORCO’s credi- 
tors and the governments of 
Puerto Rico and the UB. 

For the first nine months of 

3978. CORCO had operating 
income of $2.1m or 11 cents a 
share, which excluded an extra- 
ordinary credit of $100,000 or 
one cent a share. CORCO in 1977 
had an operating loss of $19.5m 
or $1.41 a share, which did not 
include an extraordinary 
credit of $1.5m or 10 cents a 

Recommendations by Com- 
monwealth Reorganisation Com- 
pany include a reorganisation j 
and strengthening of manage- 
ment, enlarging CORCO’s board 1 
and placing the maximum 1 
amount of decision-making, 
authority in Puerto Rico. 


Abbott Laboratories sees upturn 

- CHICAGO — Abbott labora- 
tories sees this year’s earnings 
per share climbing by 24 per 
cent to 25 per cehtover 1977’s 
91.98 a share while 1978 sales 
should be up between 15 per 
emit and 16 per cent over, last 
year's $lJ24bn, according to Mr. 
Edward J.- . Ledder/ 7 chairman 
and chief executive. 

. . In the fourth quarter,: alone 
Abbott's p«n-share earnings will 
probably increase by about 20 
per cent to 21 per cent “ with 
sales up about 13 per ceotj" he 

added. Although some analysts 
have predicted that intensified 
competition may make life 
tougher for Abbott next year 
Mr. Ledder expects 1979 to be 
consistent with our announced 
long-term growth objective of a 
compound rate of 15 per cent 
assuming a “ reasonable ” 

The diversified henlth-care 
products maker previously 
reported that nine-month net 
income rose by 28 per cent to 
$103.6m or $1.73 a share, up 

•* |ft international bond service 

•„’!! ! I \ The list shoWs the 200 latest international bond issues for which an adequate secondary market 
: exists. For further details bf these or other bonds- see the 'complete list of Eurobond prices published 

j • fa tbe second Monday .uf eadi month. ■ V Closing prices on December 18 

v ^ Is. dollar- * • oamn - .* .Navwur s.T ss as. -nttmut +ii -*«- s*« 

r tnutGHIS - - uwed Wtf Off* dw «Wk YtaH/ SNCP « « M ^ W 971 -I* ■ 7-« 

. inua. W B as va Uja 1 Sweden 6J «• <8 «i 9K 0 0 4.99 

ha the second Monday uf eadi month. 

ti DOUAR : . cfcwseW - 

nAlcms -■ ■ uiflad BM Offor dv wertc YtaW : 

fca TUrt. W SS » *K W -D| UJl 1 

&UH-8.IS S3 ITS SM 965 “Si "S 

JnatriUa Si 95 15 , W ,-f> -B| S^I 

bl.. v, — -,., 8 a- .a-at ts 

NTS.« I:..*.....,..:....:.-. . TS ■ a. «6 -W -» SJS 

auda « W — ^ "H 2 “ 

anaflji s® ...—.:. - «a - ni wj — M *st 

9 9"2; -« *S 

npjJuir K^yi .7Bv *St S5S rrU -U W 

tombdon Brtdue Co. 9 W 85. Wt W rU — ot. 19J.S . 
aBNss a» wi m '-b -« . «r 

JaWrmiiaM S K 'SO W - ftt'-Oi — H *** 

tSand-SI S3 ..... JJ8 . %1 -«Zl +W 152 

rinland 9 ». MS ' SS W '-04 s.n 

iN $ ■: 

r hz Dev. Fimai « ;. V» wi w -M -U sjb 

Iix Dev. ?ln. S| ss M - 031 W ■*» j : — •* MS 

Kafi W«tL 9 SS ...... .-Li. is «i TO -11 -K 1M 

MwftHmdTWJd » » : 50 071 STI -M —oi WS 

Surinrr Bit. SI 88 — -- . as . . « . Sfii -m -B 937 
Woreea Konun. M W. TO . ® Mi 

Store* Hydro H H » «M W1 — - MS 

§lww7lO„..:..t;.,.:. 2» 93J WJ -U ~B| 

htorwwuxr riSDr -TO TO ♦« -« 9.C 

ioccWcrtal « SS , 75- m sat -M -I UJ* 

fidnt. Hydro 84,85-.--. ; W5. 9* ; W -fft -ti 9.72 

fqoeh«uHrt*o SU -SSt -« — K- MS 

fSveden HI 80, — .. J25 SB. * -« -« 9.73 

r^UK « 85 2« - 9S 94J -« S.S6 

■. ^tllTBf M 

OTHER STRAIGHTS Issued Bid Offer day week VteM 
Rank O/S Hold. Ut AS ... 12 « MJ +B +0» 12.74 

Auto Cote Basq. 7 »5 SUA U 95 959+01 -1* 7 M 

Cop«nhaj«n 7 « SUA ... 30 -VS-'-TO —1* —19 7 -55 
Finland lDd. Bfc.7B3 EUA 1S'- “TO' 95J • ' -«9 7A4 
Konun. Inn. n 93' EUA... 15 Vt Ml +89 • 7.64 

Panama Bi IS EUA 2S 97k 97] +U +1 S£ 

• SDR France 7 93 EUA ... 32 97 971 -81 -01 7J9 

Alfiemena Bfc, « 8J FI ... 75 191 914 +0J -B» (97 

Brazil 7J 88 FI 75 «4 941 +04 +U 9J4 

CFE Mexico 7| S3 FI 7S 1951 979 -0* —59 AS1 

BIB 7| 85 H 75 193 934 0 - 0* A57 

Metier. MIdd«b.^» 83 FI 75 1921 «i -II -01 0.07 

New Zealand 84 « El TO 1919 921+09 -0J 844 

Norway 09 » FI i,.,....... 109 +>2 923-09 S AW 

OKB S* 83 FI — 75 1»* 90 J 0 -01 L55 

Elf AqmnJjy;P4 88 -FFr 150 901 90| — — IBjn 

EIB 02 08 m. 290 91* 9i; ’ O 0 9.90 

rqllcrer 10 8S .FFT- ids 1009 1084 -04 +94 9.92 

BAT 8 SO LtrePr . 250 954 964 -OS -04 8.55 

Bayer Lux. ? SS J^xFr ... SO 953 964 -« 0. 8.77 

EIB TO 88 LaxFT: . 250 954- 954 +8J +0S A36 

Finland 1,-W, SSSXwFr 251 W W -M -Si 844 

Norway 71 83 LnxFr ..... 230 979 98 +0J +0i SJ7 

Renault 74 88 toxFr 590 77* 9*4 -i-Di +Bi 847 

Sohrmy Fta.-4 *5 J.nxFr : . 500 100J IWt -04 +04 7.90 

Swedish I. Bk„ 8 88 LnxFr 509 100 1004 +04 +04 7.95 

Gwletnrr Bltl. HV u SB £ 10 381 S9* +0S +U ,UJR 

Whirbrcad 19* 90 i ... is 851 15 +04 -04 12.97 


NOTES _■ ' . Spread Bid Offer C-rfate Com CjM 

UK 84 03 

— iso to m 

American Expires' 82 01 

Arab JrrtL s S3-. 01 

Banco El Sslndar^MS 83 U 

90S 998 20/4 IQS 20.72 

954 9« 31/1 92 9-77 

954 971 12/4 UJ1 11A6 

g DEUTSCHE MASK: . Chans* wi 

I -STRAIGHTS . ' fretted md Offer day week Yield 

I 'ArsenUna 04 88 — . 150 95* 951 +M +04 7JJ 

Aston Deielan. Bk. W : 88 - 108 - 9U 914 — M —13 5-TO 

I AuxraUa-S S3 1250, JOK^ a^ .0 +61 5.77 

ATHrtaB* SO 1...:. 35»' -94f . «a +04 — 04 MX 

Baokaniorlca B M -.... 15B 9» - ,TO .+^ +04 .541 

Bqife. ExL AWertf TO 83 ^ J 100 - 9W TO 0 +04 7X 

CECA 6 88 ...: 150 - 971 TO +04 B 6J4 

Copctriiaara city 6 M 

Hitachi SWp. 54 S3 58 1004 JO +« +tt M7., 

Banco Nac.Argwff.M8 « U 954 971 21/1 91 955 

RnnV m » it m Mm no a liw 

Bank Handlowr M8 88 3 
Bank Of Tnfcra MS* 83 ... 

U 974 972 2VU 12.94 1359 
01 951 TO 18/4 18* 1054 

Bane tic Warms -MS*. 35 01 98* 98J 15/12 9 

Bo. Ext.-d’Ala. MKJ7S $4 

95G 974 9/2 4fl 9.94 










- .8 


5.78 . 















9 U 




















— H 














l nus« »8 991 991 +8J -0J 559 

x Indonesia 7 M .... HR 971 TO B -0* 754 

J Kobe, City of Si 86 100 10& 1DH +04 —0J 558 

I LislU Servian de Etet. . . 150 «l 974 - 04 - 04 7 JO 

I Mexico 0 85 MO 97* 972 0 +0| 559 - - 

• MtttubtaSt Petro. 51 85 .. 100 99* 3004 . • -04 5.77 

Nippon Steel Si OS 190 9M 1901 +0+ +94 5.79 

\ NO rare Komm. « » '180 TO 90 0 -04 6J7 • - 

I Norway -tf 83 250 941 TO -ft -II ' 550 

i Ttorwnstan Ind. Bk. S 08.;. 125 971 98| - ' 8 -84 5J4 

{ Occtoreffal 61 90 250 1974. 984 — — 7J0 

i £08 vo -now iooj — — 5 jb • 

• Fctrolre Praxfl 7 88- . — 101 9« 99* ft -R 7J4 

PK Eanksn Si 83 ....: 1M TO 94 • -04 4.65 

J Onebsc. Province of 4 90 350 TO 95 6 -04 454 

l RlCOh -Si S3 -38. J504 1004 -0* +« SJS 

, /5P41D 6 68 ^ 280 948 • TO -Oi -flt 4.W 

I Staton 6 88 ISO 9U 981 0 -M 459 

l CDS Grow « «3 *5 • 97* 98 * 0 0 4J3 

1 Venezuela »T 90 - *50 942 941 -04 -01 738 

Work! Bank 64 68 — 408 972 904 0 0 AS 


STRAIGHTS . . Issued BM Offer day week Yield 

Acres Si 88 40 10« 1041 - -04 +U 4iT2 

American EStp. HU. 34 73 40 991 308- +04 +DA . >-52 

Arlbera Toonei 4 03 ..- 48 99* W04 +04 +U +M - 

Anstiia 34 *3 100 SSI TO +M +*i *86 

. 3M 77 TO I -HI « ; 

.-Cha» Manhattan + „ TO 3B IBM +il. +11 3J2 . 

Baatenrerica 31 93 ”..._ w 1885 MU +H +«* M* 

' Benmxrk 4* on too 2M1 lot! - +0t . +8* • 4JU 

-gS-lMage ^. ... » 

BSB 41 98 300 1SU Mil +M +1- «1 - 

Soraiom 4* S3 ;. 81 1 loos 101 +« +*i - U* 

f: u tokSi ii i L:!'.. -b mu mbs +oi +m xj* 

BntodWW " S 103 ISM +M +02 4 M . 

aTnt Chicago- 34 92 .- 70 991 UN -II -U JrS 

GZB44 93 _ ISO 1021 1824 +01 +g J27 

H0B-I4ecb«Wetn- 4* TO . 1*» 1“* + *i - + 2f • 

. -.-JCTFIn. vv 4* ex . " 190 ww 1044 +01 —04 Ml 

< toSria - 10 TO 993 +81 +01. 4.TO 

• liatSSS. « £ .iso mi 3BU | +g +“ • 

ffnr»g 4 93 . 70 MB 1904 +M . +*l AW 

- jjggw Kemm. 44 bo...... -MO 5TO JTO +« +«. 

' OKB 4 93 -...s- SO UB - Utt 0 +“•. *■” ■ 

% Oy RoUa S 90 -20 ‘ UH MS +U .+* Jg ‘ - 

S atm jia - so MU U2C +0C - +03 - AO. 

i.aS*3s4 w' « m us +« * *.n 

1-SluON 15 MM MSI +04 +W .*54, 

l VnreK Atnw 're 2M 152 1024 +04 +83 05# 

, yontBm»r&'+ n Z... m iou aa m .+« -+« • 

j VJbjm a m • 100 in MU +04 +w 

' ijrSffBafidi M".:..-,.... »..aoy. *TO . +>* +«. *** 

>*N mAKSHTS : ' 

5«anPev.tti.HJ» p TO W -81 ■; 

8.4 "SB ir.r .» In’. 

. EurnBnu S 2 BO* ..... M !K .TO • M 2 

Bque. Est. d'AJg., J*7J U H J5J 96* 2/5 121 1SJ8 

Eqne. Into et Suez M 54 .. .0* 971 904 25/1 94 957 

BQ^t. Afreet- Mff.5 83 01 961 TO 32/3 94 955 

M 954 974 3/2 9.19 950 

CCK MSS U 991 992 3/5 124 12J1 

Chase Man., O/S 145* 93... 14 974 973 27/1 951 955 

Credit NMlOrtaFMs* 88 .. 14 97i 98 11/1 959 9.98 

CotahanJcen.Jirevtt. ....... 14 97* 984 15/5 1251 1258 

lnd. Bank Japan MBi 99... 01 984 994 1/6 1255 12.97 

Jshlkawalima MW. SB |* 17* W 27/4 11* 1UW 

LiobUangka M7.75 fiff l «S1 954 19/1 BU 1059 

LTCB Japao VH. W : 0i 981 98C 9/5 12.06 2236 

Midland lnlt-M5*’33 04 97* 98 20/1 954 956 

Nflt- Wejrt, MSJ 9C ., 04 972 TO 21/12 451 9J0 

OKB MSS » 84 991 100 M/4 1059 1059 

Offshore Mining 94 14 « 98* 19/1 950 951 

Prlvrodna Banka 86 .. TO 961 22/12 — — 

standard Chart. MU 90... U TO 974 10/2 8.94 921 

S oBdsvaHibank tn. U« 80... 04 964 97* 4/4 10.06 HJ9 

Utd. OvarMas.Bfc. -M0 83 04 TO 99 4/5 1251 1257 

COHVHRTtBLK ; . Cov. Cnv. ChB. 

BONDS *. date price Bid Offer day Prem 

ASICS 9S 93 9/70 628 UU M2S -01 1B51 

Baker Jnb m-S*8S 1/79 34 flTO M34 — U UJ3 

Boots 9S W 2 779 226 TO 92S -« -256 

Coca-Cola Boftltog .Si 4/79 9 Mi 90* -U 2358 

ItO-Yokadfl M- 83. ...;., 5/78 -MI3 -ISO* !3U -0* -150 

Novo Industri 7 80 4/79 “S9 ~#T-~ 91 -It 3-97 

Texas lot. Air. 71 M am 1*5 -TO TO +« *558 

Thom lnl. Fltn‘ *.S8 ^.^21/18 3.67 1901 1012 -OS -1-7? 

Tyco lm. Ptn.--a*. 88 9/78 21 90S M#1 -2 1229 

Tyco 181. FIB.' B- 84 S/78 615 175 76 +14 M950 

Asaht OpUcal-3J W XLTTi 588 TO . 924 -2 -153 

Casio Comp. -3* & Pm .. 21/78 841 182 102] —II 250 

Immlya S» « DM - 20/18 989 971 9Ti -II 355 

Jnsco 34 80 DM'.; — 1/79 2278 944 954 - 94 M54 

KonlsMrokff 3* 95, UM ... 1/79 612 94j 954 -02 *29 

Mantdai Food IS* . Dm ... a/79 1B33 994 991 -0i 1150 

Mnrau Man. . 31W DM ..2V78 854 944 ' 941 -9S -128 

Nlopon Air. 33 88 BM _J2/78 508 941 TO -04 176 

TJhmon Shtopan 31 -DM 8/18 338 1134 114 -IS 05S 

Nippon Ynaen 3+83 DM— 1/79 251 954 96 “83 -8.99 

Nissan Diesel »» mi ... 2/19 477 . TO 94S -14 928 

Olympus OpUcsTH as DM 2/19 783 981 994 -01 -UT 

Ricoh 34 .86 DM 21/78 517 1024 1022 -H 955 

SanXj-0 Electric H.DM ... 8/78 8U 111 XU* -2 750 

Sanyo ElectttaJJ.iai ..-21/73 295 904 TO -02 550 

Selyw Stores- atse . DM ... 9/78 MTS 1124 113 -U -356 

Sharp Core- 3+.H8 DM ... 2/79 487 Me 94| *99 

Stanley Electric 3i Dm . 21/78 «Z» « W -M 1155 

Tokyo Electric H AT DM 4/79 *76 1951 964 — -059 

Trio-Kenwood 8J 80 ,TW...lim 711 90 TO —OS M.» 

* Nn infonnaffog : available — provtais day’s price. 

7 Only <Oe market maker rarolied a Brice. 

SnUU Baa#; Thr yield la the yield to redemption or the 
mid-price; toe amount Issued la In mlUIoro of carrencr 
units except for- Yen bends where It la bi ballons. Changa 
on wedc=eiiaiige ever price a week earlier. 

Floating R«l» - Katas: . Demminated In dollars unless other- 
wise Indicated.- *M=M M m ui g coopon. c.daie=Dsic noxt 
coupon beenmre effeedTP. Spread=Marsln above six-month 
offered rale for. U-S. ttoUat*. C.cpn=T3ie curreat coopon. 
C.yld=Tlie cur cent yield. 

Convertible Denomtnated In dollars unless otherwise 

Indicated. Caa. daj-— Qmn&t on day. Cnv. daie=Firn date 
tor comrertoD pno 'shares, Cny. Price-Nominal amount of 
■ band per Share - represaed to cnrrenojr of share at conver- 
sion ra» ftxad at Issue, Fma-ParreMagB premhmi of the 
ament effective price of acquiring shares via the bond 
© vpr the tpoa renin price ot the Shares. 

o The FlnaacUl.TlJnea Ltd.. 1878. Reproduction ■ in whole 
or In pan ffl aqr (orm aot penatunl -without written consent. 
DaU snpDlini hr iBaj^Bend Senrlcts. 

from $81m or $1.36. Pcr-sbare 
earnings in last year's period 
were adjusted for a two-for-one 
stock split paid in May 1978. 

Nine-month sales were up 17 
per cent to $1.05bn from 

In 1977 net earnings were 
$1 17.8m or $1.98. Fourth-quarter 
net income was $36.9m or 62 
cents on sales of $347ro. Per- 
share figures for both periods 
also have been adjusted for the . 
stock split 

Pattern in 
$100m deal 

NEW YORK — Simplicity 
Pattern has agreed lo acquire 
the James E. Crass Group of 
Coca-Cola bottling companies, 
one of the largest such fran- 1 
chises, for just over $100m. 

The seven privately - held 
Crass companies have annual 
sales of about $100m. Based in 
Richmond the bottling com- 
panies serve markets in Wash- j 
ington DC, Virginia, Pennsyl- 
vania, Maryland and Ohio. 

Simplicity said it had sale ! 
agreements from holders of ail 
the stock of five of the Crass 
companies and 90 per cent of 1 
tbe shares of the other two. It i 
said the transaction would not . 
involve issuing any new equity 

Mr. Peyton M. Pollard, chief 
operating officer of the Crass 
group, will continue to run the 
bottling companies and will be 
a member of Simplicity’s board. 

McDonnell Douglas 

The Securities and Exchange 
Commission said McDonnell 
Douglas Corporation consented 
to a permanent injunction in- 
volving alleged .payoffs of. about 
$15m to . more tban a dozen 
foreign countries, Reuter reports 
from Washington. Tbe funds 
were allegedly expended since 
1969, according to the SEC, and 
involved payments to Germany, 
the Philippines, Korea, Kenya, 
Uganda. Tanzania. Austria, Italy, 
Mexico, Zaire, Venezuela, Hol- 
land, Pakistan. Japan, Argen- 
tina, Iran and Kuwait. 

Tally offer extended 

i Mannesmann Precision Instru- 
ments, a unit of Mannesmann 
AG of West Gemany, has 
extended its tender offer for 
Tally corporation stock to 
10 a.m. est January 12, 
Reuters reports from New 
York. As of Friday, Mannes- 
mann said about 1.6m shares of 
Tally stock had been tendered 
under the offer for $14 cash 
per share. It already owns 2.3 
shares of Tally stock and, 
together with the tendered 
shares, now has about 75 per 
cent of Tally’s total outstanding 
shares. The tender was to ex- 
pire yesterday (Monday). 

Rockwell sale 

Rockwell International has sold 
its Admiral de Mexico sub- 
sidiary to a Mexican corpora- 
tion. AP-DJ reports from 
Pittsburg. The Mexico unit 
manufactures colour and black- 
and-white TVs and stereo 
systems for distribution in 
Mexico. As previously reported, 
Rockwell has disposed of its 
domestic Admiral TV business. 


companies do not produce iden- < 
tical products, though they are 
both in the same broad line Of 

Pitney-Bowes sales last year 
were $ 606 m and its earnings 
$36.5m. Revenue in the first 
nine months of this year was 
$506.8m, and net income $29.7m. 
Dictaphone's revenues last year 
were $2ll.6m, and net income 
S5.5ra. Nine-month figures Urn 
year showed revenue of $l77^m 
and earnings of $8.9 m. 

By next year, the two com- 
panies’ combined sales would be 
in the region of $lbn, putting 
them well ahead of other 
industry leaders like Addresso- 
graph -Multigraph (sales of 
$666.6m last year) and Saxon 

Pitney-Bowes recently said 
that it expected its business 
systems sector to have a 
revenue of over $lbn by 1982. 

Bay wins 
battle for 

By Robert Gibbens 

Hudson's Bay Company 
appears to have won the fight 
for Simpsons Limited, the 
department store chain and its 
associated Simpsons-Scars 
store and catalogue sales-office 
chain. The Bay had bid nearly 
CMOOm (U.S3470m) for all 
the Kbares of Simpsons 
Limited which, in tarn, owns 
half of die voting stock of 
Simpsons - Sears. Sears 
Roebuck of the UJS. owns the 
other half. 

Simpsons withdrew its offer 
yesterday morning (Monday) 
to merge with Simpsons-Scars. 
and recommended its share- 
holders to accept the counter- 
bid from the Bay. 

The Bay’s offer in cash and 
stock is worth approximately 
$8J0 per Simpsons share. It 
had required 60 per cent 
acceptance from Simpsons 
shareholders. The Bay earlier 
had said it would regard the 
indirect investment' in 
Simpsons-Scars as M passive ” 
or in some circumstances it 
might be willing to sell the 
Simpsons stake in Slmpsons- 

Last week, both the Simp- 
sons and Simpsons-Sears 
merger plan, and the Bay's 
counterbid for' Simpsons were 
approved in principle by tbe 
Federal Government, and the 
ball was thrown back into 
the hands of Simpsons share- 
holders to decide which was 
the more a tractive offer. On 
a s hare- for-s hare basis, the 
value of eaek offer was not 
very different, except that in 
the case of the Bay’s offer 
there Ls a cash element which 
was not present in the Simp- 
sons and Simpsons-Sears 
merger proposal. 

The combination of the two 
department store businesses 
of Simpsons and the Bay will 
represent annual sales or over 
$1.5bn, and moreover, will 
bring together a great deal 
of valuable downtown and 
shopping centre property 

The Simpsons-Sears busi- 
ness. consisting of over 60 
smaller department stores in 
new shopping centres and the 
largest catalogue sales oper- 
ation in Canada, will have 
volume oF well over $2bn a 

Banks’ position enhanced 

AMERICAN banks should now 
be well placed to increase 
sharply competition with their 
international counterparts in 
financing China's trade and 
industrial modernisation pro- 
gramme, following the weekend 
announcement of tbe decision 
to normalise diplomatic rela- 
tions between China and the 

Current projections by Bank 
of America suggest that China 
is likely lo need S30-$35bn of 
foreign credits up to 1985. 

The bank's Asia representa- 
tive, Mr. Louis Saubolle, con- 
firmed last week that China had 
been discussing the possibility 
of receiving direct loans from 
American banks, although no 
loans had yet been negotiated. 

China has been showing an 
increasing willingness to turn 
to foreign sources of financing, 
although European and Japa- 
nese banks and trade financing 
agencies have been dominating 
this rapidly-developing area for 
business up to now. 

in Hong Kong at the weekend, 
U.S. commercial officials 

described the diplomatic moves 
as a "very positive step" for- 
ward. Although trade with 



China has been expanding, the 
lack of full diplomaic relations 
“has been a handicap for U.S. 

It also means it should now 
be possible to advance on the 

Up to 1985 China is 
expected to be in need 
of foreign credits to 
about $35bn. Following 
the ** normalising ” of 
diplomatic relations, 
American banks should 
now be nicely placed to 
step up competition in 
this sector of the loan 

question of the assets of each 
country frozen by the U.S. and 
China at the time of the Korean 
war, they added. 

The frozen assets question has 
been a recognised barrier to 
trade between the two countries. 
In particular it has stopped 
China shipping its exports to 
the U.S. in Chinese vessels, 
while putting U.S. banks at a 

disadvantage with their Euro- 
pean counterparts in financing 
Chinese trade. 

In ihc British colony itself. 
President Carter’s announce- 
ment was welcomed by bankers 

and businessmen. 

The Hong Kong and Shangai 
Banking Corp said it is predic- 
table that the pace of financial, 
commercial and cultural con- 
tacts between China and the 
rest of the world will increase 
much more rapidly than had 
seemed possible a few months 

“This should in turn be of 
great importance to Hong Kong 
which is strategically placed to 
act as a channel for increased 

A spokesman fur Jardine. 
Matheson Company Limited 
said the establishment c>C diplo- v 
matic relations is good news,.' 
but added that lime is needed - 
to see how it will affect Hong - 
Kong and the region. 

Hong Kong General Chamber 
of Commerce director, Mr. 
Jimmy MacGregor, said. "We 
shall probably benefit quite sub- 
stantially in the short and 
medium-term, but the long term 
is more difficult lo assess." 

OPEC casts its shadow again 


PRICES OF dollar denominated 
bonds retreated by an average 
of one full point on the day in 
the wake of the decision by the 
Oil Producting and Exporting 
Countries on price rises totalling 
14.5 per cent. 

The larger than anticipated 
increase in the price of oil 
resulted in all the questions 
about the likely size of the U.S. 
balance of payments deficit next 
year and its likely effect on the 
performance of the dollar being 
rekindled. The news last week, 
full of gloomy forecasts about 
interest rates and inflation had 
Jed to a fall in prices. The 
OPEC decision just compounded 
the market’s misery. 

Selling orders came in yester- 
day hut no buying ones. Trading 
however remained thin with 
dealers reluctant to open new 
positions ahead of Christmas. 
This had the effect of exaggerat- 
ing price movements. 

The Floating Rate Note sec- 
tor was also easier, but prices 
were hi* less hard than was the 

case where straight bonds were 

The six-month interbank rate 
moved up from 11 IS last Friday 
to 12 i- per cent today. Fore- 
casts that it would soon rise 
to 12J per cent came from many 

The Deutsche-Mark sector 
was unaffected by all this 
gloom although some bankers 
expressed concern that specu- 
lation against the dollar might 
be given a boost. Though 
recognising the speculative 
factor in the buying of foreign 

DM bonds they argued that, 
coming so soon after the Carter 
package, the renewed weakness 
of the dollar was very bad news 

One area of the market where 
the tone was happier was ihe 
Kuwaiti Dinar sector. The 
KD 5m issue for the Industrial 
Bank of Finland was increased 
to KD 6m and priced half a 
point above par by the lead 
manager. Kuwait Investment 
Company. The bonds carry a 
guarantee of the Republic of 

Bundesbahn plans issue 

FRANKFURT — The German in the first-half of January, 
Federal Railways (Bundesbahn) reports Reuter, 
may tap the domestic bond The Bundeshhan's last issue 

EM? — '°r ™ «»» - “ 

are currently available but over * LX Jeari 11 carried a 
terms could be set following the coupon of 6 per cent and was 
issuing consortium's meeting priced at 99*. 

This announcement appears as a matter of record only 

European Coal and Steel Community 


US $40,000,000 
Notes due 15th December, 1990 

Private Placement 

Daiwa Europe N.V. 

Mitsui Finance Europe 

The Sumitomo Trust Finance 
(H.E.) Limited 

The Bank of Tokyo (HollandJ'N.Y. 

Nippon Credit International 

Nippon European Bank 

Yasuda Trust and Finance 
(Hong Kong) Limited 

December, 1978 

We take pleasure in announcing that 



has become a Limited Partner of 



December 19th, 1978 

... v 


oier ' is 3®^. ,j 

Companies and Markets 

for price 

tmtppnatt onaT. COMPANIES and 'FINANCE 



PARIS — The stresses ari-stog 
in French industry, both public 
and private, by the gradual 
relaxation oF state controls, have 
resulted in an open war of 
words between the Ministry for 
Industrv and the state-owned 
Eir Aquitane Group, France’s 
second largest all company. 

The argument here comes 
down to the question of how- 
much freedom industry’ has 
especially for a company in 
which the Government has a 
70 per cenL stake. Elf has been, 
arguing that it should be able 
to act with the same commercial 
freedoms enjoyed by its Inter- 

national competitors, implying 
more flexibility over pricing and 
diversification, than, it has at 
present. But the Government 
has come hack with a stiff warn- 
ing that it must stick to its 
principal purpose of “ providing 
France with oil.” 

This is the latest exchange 
in a struggle which has been 
rt oing on about the future of 
Elf. for much of last year. In 
the spring M. Albin Chalandon. 
the company’s chairman, asked 
for more state assistance _ to 
protect its troubled refining 
sector, and suggested a new 
equity injection. Neither was 

forthcoming, and the company 
was, in effect, told to sort out 
its own problems. 

The point made by M. Andre 
Girand, Minister for Industry, 
was that, in its entirety. Elf 
Aquitaine was exceptionally 
profitable," with the best cash 
flow in France.” Last year, it 
made a net profit of FFr l.Thn 
(8380m) on a turnover of FFr 
3Sbn. It should, therefore, sort 
out its refining problems within 
the context of its whole 

Elf has no wstarted on this 
restructuring programtnme, with 
a plan to rationalise its refinery 

SAS final shows big upsurge 


STOCKHOLM — Scandinavian 
Airlines System (SASj reports 
a 3S per cent rise in pre-tax 
earninc*! to SKr 126. 7m i$29m) 
for year cndinc September 30. 
Th? Board als>> forecasts a 
further improvement during 
ihc current year but warns — as 
it did last year — that SAS’s 
carnincs level must he raised 
even higher, if Hie company is 
in he able in meet its future, 
capital nced>. 

TIip p ml mu nary fisnrcs f nr 

last year show’ a group operat- 
ing revenue of SK" 7.05bn 
($1.6hn). which is SKr 1.4bn 
ahead of the previous year. 
Traffic revenue was SJKr 4.64bn 
compared with SK 3.74bn. 
Group operating expenses rose 
by SKr 1.26bn to SKr 6.44bn. 

Depreciation charged is 
SKr 347m. only SKr 22m up. 
and the SKr 126.7m pre-tax 
profit breaks down into 
SKr mom from “current 
activities ” and the rest from 

sales of equipment. Last year 
sales of aircraft and other assets 
accounted for a larger part of 
the group profit, SKr 34.9m out 
of SKr 90.8m. 

The airline itself, shorn of 
SAS's other business operations 
such as hotels and catering 
services, made a pre-tax profit 
of SKr 94.1m, which is SKr 16m 
ahead of the previous year’™ 
-figure. SAS had a 12 per cent 
increase in traffic in 1977-78 
and its load factor rose from 
54.3 In 55.7 per cent. 

activities. ' Costing between 
FFr l50m-FFr 200m, it is being 
financed by ihe group itself and 
will lead to three main measures 
in its Elf*France division. These 
would entail: 

• The closure of a refinery in 
1980, either at Gargenville or 

• A furtherf'FFr 50m invest- 
ment in its Ambes complex to 
maintain it at present levels' of 

• The construction of a new 
plant at Donges. 

These plans entail a move 
away from heavy fuel refining 
. towards the so-called “ white 
products ” (gas and motor fuels) 
in which Elf sees more pro- 
spects. Accompanied by a 
number of management changes 
which create a new top-tier 
directorate with overall plan- 
ning responsibility, they seem 
to have met the approval of 
the Government 

M. Giraud. however, has 
balked at a statement put out 
by Elf, to the effect, that it now 
sees the State as.simply another 
shareholder. Tn M. Giraud's 
view, despite liberalisation poli- 
cies. the State continues to have 
a special role to play in the oil 
industry’- The supply oF oil 
remains strategically important 
and a public company must 
remain responsible to ihe 




By William Dullforce 

llddeholm, the pulp- J«Pf r 
and board group winch is In 
trouble after trying to merge 
the BHlerud Company with 
Uddeb aim’s forest industry 
operations, has changed Sts 
managing director. The board 
announced that Mr. Gunnar 
Hind cm ark, aged 56, had been 
replaced by his deputy, Mr. 
Tryggve Bergek, 64, from 
December 15. 

The chairman, Mr. Lars- 
Erik Tbunholm, said that the 
differences of opinion which 
has arisen during the merger 
operation had become so 
large that a change of leader- 
ship was necessary. The dif- 
ferences concerned the safety 
margin with which the group 
should operate and the possi- 
bilities of continuing opera- 
tions which were not cur- 
rently in profit, Mr. Thanh oLm 

BUIcrud Uddehnlm has 
been losing SKr 4m 
(8900,000) a week and has 
predicted a pre-tax loss of 
SKr 200m Tor 19"S. Mr. 
Hindemark is understood to 
have advocated a retrench- 
ment policy, which would 
Jia\e entailed the dismissal of 
some 2,000 workers. 


Pre-tax profit increase of 25-7 per cent 

Extracts from the statement by the Chairman, Mr. C. S. Barlow 

Year end 30 September 

£ millions* 

Total assets 

Profit before taxation 
Profit after taxation 
Consolidated net trading 
profit after outside 
shareholders' interest 



























37.2 31.2 

The .past year 

We have seen a general 
improvement of business inmost or 
our Companies. Group results show 
a consolidated net trading profit of 
£55.4 million. Our dividend for the 
vear is 17.5p compared with 15. Ip 

last year. These results are better than I expected a > ear ago . 

The responsibilities of our group are considerable as we must 
include those associate companies where we have a direct 
management role. 

We have- on our pan-oil 138.000 men and women; this pavroli 
amounts to £230 million in a year, and these people engender a 
turnover of £1,162 million and a profit of £169 million on which 
£59 million in tax is paid. 

From this you will get some idea of our size. 

51 .6p 44.1 p 41.9p 37.7p 31. 9p 

Earnings per ordinary 
share — nettrading 

“'ordlnaryshare 17.5p 1 5.1 p 13.9p 13.4p 11. 6p 

* Rate of Conversion — 1 South African Rand— £0.58. 

The Government has made it 
abundantly clear that it wishes . 
South Africa to develop as a free 
enterprise society and that the 
burden of uplifting the economy 

from the recent recession rests _ . 
mainly on the private sector. This is 
a challenge which we have no 

a cnauenge wmwi u«*v , • 

hesitation in accepting. At the same time a welcome change has-been 
taking place in the policy of the Government towards the *^? slon 
of industries in wluchit fe; 

of the industries in which ltnas invested puu».- 

enterprise, I believe, is now being encouraged to develop without fear 

of competition from such Government .concerns. b . out £ - 

_ e 1 . 1 - _ Lv. n . in t-Vua world whirh is movins in this dirGction <K 

I hope that this trend has been observed ay iDuubw •.» “t " 

West whose management and business philosophies conform clobel> 

to our own. 

Exports j . . ... 

The group's exports (excluding the proceeds of the s^e of gold) 

increased bv £17.4 million to a record level of £12o milhon. The bulk 
_ l’ ... ^nmoc from VtaRp. minerals such as coal, uranium and 

increased bv £17.4 million to a recoru i w LIT 

c.foui- expoi-ts conies from base minerals such as coal, uramum ^ 
chrome ore with increasing amounts from bene fimated i n *b , 

form of cement, fcrrochrorae. stainless steel and certain manufactured 
steel products. Conditions in many of the international markets have 
been difficult and in view of this our export performance can be 
considered reasonable. 


The events of most significance to the group this W^howewer 
were undoubtedly our major acquisitions which included a dO per cen 
interest-in GEC South Africa a very important electrical 
manufacturing organisation whose activities are 
our existing engineering business and a o5 per cent interest in t 
merged Reed Nqmpak/Sarpak group which means we now have a 
large and diversified investment m the packaging field. Bo . 

acquisitions were made during the latter part of our year. Their effect 

onjrroup earnings per share is Dot material, but they^re expected 
make an important contribution to our profits in the future. 

We also acquired the Natal based NMI group which markets 
Mercedes-Benz vehicles, and two other smaller motor chsteibution j. n 
iviercea N-itnl These investments were made with a view to 

comparne. a - ’ ex isting interests in the motor trade in 


their operation the builders merchants interests of Plate Glass & 
Shatterprufe Industries. , .. 

In general terms we have always aimed to maintain a broad policy 
of diversification as we believe that this helps to protect both 
sha reholders and employees against adverse fluctuations i n 
n articular sectors of the economy and of our group s business. As 
opportunities arise. we will continue to add to the ; 
that have growth prospects and are managed by people of ability and 
integrity. We shall also pay increasing attention to the P 088 ]! 3 ?^, 0 / 
our overseas companies making new acquisitions as we considei the 
market share of some of our businesses in South Africa is now large 
in the context of available business. 

of competition Irora such bovemmeni “ T - ~ ^ a 

of the few countries in the world which is moving m this direction arid 
I hope that this trend has been observed bv industrial comparues ui 
117 i _. nnn nnmun^ -anri hucinpss r>H i I osod hies conform closely 

Social responsibilities 

For some years now considerable progress has been made both m 
our own and other South African companies towards the equalisation 
of opportunities and rewards for employees of different races. We 
consider our own group policies as progressive and continue to 
devote a great deal of attention at all levels to training *** r , 
development. In June 1978 we published the Barlow Rand Group Code 
of Employment Practice copies of which are available to - 

shareholders on request. The object of the code is to provide ton 
guidelines for company managers and at the same fine to mak e our 
employment policies known to our employees, shareholders, business 
partners and bankers. It is a consolidation of policies enunciated in 
successive annual reports and guidelines issued to group compame, 
from time to time. It makes specific commitments re lating to selection 
and promotion, training and development, remuneration, retirement 
benefits, negotiating rights, integration of facilities and improvement 
of the quality of life of employees. Companies ot the group are 
preparing programmes and timetables to bridge any gap thatmay 
exist between these commitments and existing practice. 

A second project commissioned by our educational foundation is 
nearing completion. This is a technical high school at Mdanteane, 
near East London, which is a gift from the C.fc>. Barlow Foundation to 
the people of the Ciskei. The school is due to open at the begi nning ot 
the school term in February 1979 and initially vnU cater for 450 
pupils. The Foundation will be spending £43o,000 in providing the 
buildings for the project under the supervision of our property 
division and its consultants. The Foundation will consider other 
projects in pursuance of its ongoing objective o l augmenting the 
supply of badly needed skilled manpower in southern Africa by 
fostering technical education and training. 

Prospects for next year 

There are a number of indications that the upswing in our economy 
will continue through 1979. This of course assumes that there will be 

• r i-N t l 1 _ J iLnf 4kn flnirommanr 1A/1 1 1 TH K P- 

The South African economy 

The nast veai- has seen a turn around in the South African economy 
and after a vear of no growth in 1977. there, is now firm evidence of a 
moderate economic upswing having taken place since the beginning 
nf 197S Tlii s has been achieved by a much higher gold price, 
improved exports and an increase in local consumption expenditure. 

Barlow Ran d Eurepfltl^IliSSs 

London - 

Paris, Brussels, Antwerp and Bulawa>o. 

Copies of the 337S Annual Financial S/afcwcng arc amifafife fnm the 
Tha$. Barlow (Holding*) Limited . 16 ttratford Place, London. 


TOKYO — Sony Corporation, 
consolidated net profit for the 
fourth quarter of the fiswl sear 
ended October 31 fell sharply, 
after an exceptional advance m 
the previous quarter caused, bjfe 
accounting Mors ’ 
the yen’s artireciafion. Net 
income for the entire year was 
down 28 per cent, oon .to 
earlier expected, to Y2o.6olhn 
fllSl 154m) from Y34.642t»n m- 
the previous year. 

As in previous terms, me 
fourtb-quarfer results were hurt 
■bv the yen’s rise. Net income 

dropped 36.8 per cent from a 
year ago to Y3.865bnCS20m).Tt 
•was about one-third of th e 
V 9.604b n net recorded in the 
third quarter, and the lowest 
quarterly net of the year. ■ 

Sales in the fourth quarter 
expanded by 5 per cent to 
Y144.239bn <5739.7m) frpm 

Y137.341bn a year ago,^ and 
far the vear were up a.i per 
cent to Y534.9I7bn (S2.7bn)— a 
new record total. . . 

The company said that it Celt 
its sales gains, particularly in 

home video tape recorder- 
related products, were quite 

favourable- Overseas-sales were 
up" only 3 per cent, ^domestic 
:sale» gained 10 - per. cenL VJR 
sal« jose. 25 per. cent to 26.8; 
pec. -cent • of the '. to, taU" while, 
'production during. the- year 
BO per cent to 400,000 units:-.*. . 

• Another 50' per. ceut-rise .ls 
-expected’ this year.- -Nation^ 
celoar television sales^were. 
about 10 per cent, 1 hut "Sony 
managed « 0.8 per cent gam; . - 
' The fourth quarter resaUs 
were down sharply ftein last, 
year partly - 'because of - an 
absence of foreign exchange., 
translation gains to offset a high 
tax rate of.77- per cent? (the. 

'highest quarterly rate, kl -Aea 
vears). Pre-tax profit_showed an 
IL2 per cent rise to YlLSSSbu 
iir' the third quarter. ’Eher'pbsi- 
tive effect of -the Yen’s revajsar- 
tfi>n on earnings of. overse^s 

suhsidiaries had preducetl a 

per cent net gain. 

- The cost of sales 'for. Sony 
during the 'year ty 

rise as the gap between his- 

Ltoricai' eShang«: ratW 

cost aridycurrenl latw for rales 
widened. Cost of sai es ros ® t0 . 
g9^par cent, from 83J, percent 
daring'.the- |»nM 3*J*V ; 
were- oalcul^ed at . 

; av^ragev wtek tosts were. set at 

- For thijpres®nt year, Bony 
r «mect3 a ;10 Iper cent anCTe^e 

•in icoiisoiid^ed,- sales. ^5 

. figured-: «"on -tbe -:cost . oasis or 
“Y19T-)^ : dolMr T for z '-tfie feat 
■rlteif :: ind YT8CKfor -se«)ad 

to recover , sti snost' 

foreignexchange : anaIyste fore- 
see'’- sonje -'coiHiailed jppwaid 
mov«iie nt fb 4hr yen . L-' L ' . : ■■■ 

: ,i;Tbe company'; s£ent apput 
Y37haon mostly 

overieas ; -’alm^-aspanded its 
'cedoui:! teievisi 0 B.iand : tepe;&cui- 

-' : W|-*7.TT .S.?VW=«SiMCls;- tO 



SYDNEY — The Melbourne 
Businessman, Mr. Bernard 
Hendel has emerged as the . 
largest shareholder of tyre and. 
cable group. Olympic Consoli- 
dated Industries after the most 
extensive sha re market buying 
operation undertaken -in'- 
Australia. Olympic has about 
50m ordinary shares, and Mr. 
Hendel began buying on the 
market several months ago. 

Over the past two weeks the; 
buying has escalated sharply 
with a number of large insti- 
tutional investors quitting their !, 

Mr. Hendel now holds close lo • 
25 per cent of the capital and : 
there is no indication that 'he ■ 
has finished buying. The 
operation to date would have- 
cost about ASTm (U.S-$8nf).‘- 
The Olympic board, which has 
heen keeping an eye on -the : 
buying, invited Mr. Hendel. last, 
week to join the board. 

The step-up in the paced; 
buvtng coincides with the 
release of draft company legis- 
lation which would make such- 
creeping takeovers more - 

'Mr. Hendel carried- out -a 
rimilax operation with textile 
group Bradmill Industries. He 
began buying Bra dnviil. -shares 
■ late in 1977. This bdeasne .rtan- 
plicated by -a : battle ? with ■ the 
interests of another Melbourne 
businesman. Mr. ASe-CoIdberg. 
but Mr. H end el early this '-year 
: gained control:- of Bradmill. 
!Soon after however, he jsdid -40 
per cent of Bradmill. t'o.ToqfaL 
!o£ the UK. At the 1 time.^octol 
received government /.approval. 
:to In creasse its . eqidty ia Brad- 
/ mill to 49.9 per cent. - 
. : -Ironically. Mr. Hendel ■ has 
sold a further . 4.17m :.Bgrdm ill 
: shares to Tootal. lifting its stokfe 
to 49.9 per-cent'" 

It was announced that S£r. 
Hendel would remain 'a'depir^r 
-chairman and o'. • large' i share- 
holder in Bradmill and ffiat{he 
-would continue fo 'take;-^m 
active role ih the management 
of the company. T 
■ At current market jttiees for 
Bradmill the sale, 'to Tootal 
would realise close to A$$m. 
which would offset .a consider; 
/able amount of Sthe funds' out- 
laid to date offDIympic. 

Surprise deficit for SA 
furniture manufacturers 


ing uncertainty over the near- 
term future of South Africa’s 
recession hit building industry 
has been underlined by the sur- 
prise announcement of a 
R700.000 loss by major kitchen 
equipment manufacturer, Steel- 
brite, in the four months to 
October 31. 

in its financial year to June 
30, 1978. Steelbrite reported a 
total operating loss of R747.000 
(¥858,000). For the current 
year, management saw little 
prospect of improvement in 
trading conditions. 

Because of intense com- 
petition,, underutilised capacity 
at the company’s factories and 
increasingly uncertain prospects 
for the residential building sec- 
tor, an expected loss of R2m 
is being budgeted for . in the 
current year to June 30. 1979. 

In view of the drastic action 
to return Steelbrite to profit- 
ability, part of its assets are. to 
be realised and the scale of its 

will continue tnrougn isia. ims oi ct >ui« — ------ -- 

no major socio-political upheaval and that the Government will take- 
some further positive action to stimulate the economy. In this event 

we should see a real growth in the South African gross domestic 

product next vear of between 3 and *1 per cent. Many of the industrial 
and trading companies in our group are alreadv beginning to leel tne 
effects of the economic recovery and are budgeting for unproved 
results. We will also benefit in 1979 from a full year s trading from 
both GECSA and Nampak. On the other hand, our mining division 
which performed better than expected last year has now reached a 
platform of earnings where it is likely to remain until 19SU. 

The financial position of the group is strong and if there is a follow 
through to the recently improved business conditions m south Airica 
I expect the coining year to show some growth in earnings. 

operations reduced further. It 
is unlikely that -the ; company, 
can obtain adequate funds^ .to 
see out the recession .from 
usual commercial bank sources, 
and the onus of ensuring ■ con- 
tinuing operations appears to 
have fallen n the 63,7 per cen^ 
controlling ’ company, Johannes 
burq Consolidated <JCL). ’ .... 

Steelbrite, last traded at 47 
cents, has been suspended from 
the Johannesburg Stock.. Ex- 
change : since November. 17 
while management, discussed 
proposals for returning the com- 
pany to profitability. ; 

Now JCI has decided, that this 
can be best "achieved by malting 
Steelbrite ;a - wholly-owned sub- 
sidiary ‘and is offering to buy 
out the 36.3 per cent minorities 
at 65 cents. Substantial write- 
offs will' be needed of Bteel- 
bri-te’s assets, which will be 
reflected in JCTs accounts this 
year. But there seems to 
alternative except- putting, the 
company into liquidation. 


* c ' " -I-' 1 

Bjr 'Hanoi ■; 

& AMMAP^The; Estate-owned 
JortJdhian:" airitne Allai will 
make-.a net .profit 
this .yeav maridng its «xm-. 

consecUtive-'year' inthe black, 
Mr. Ali.Ghandour, -Mia’s 
chairman ' and. - . .gwiem 
■ manag er^ hns announced here. 
This -is a sharp over 

Jast ^ear’s proffts of $790,000. . 
. .Gross, revenues o^-$ 136ro 
ihisryear and operating profits- • 
4 >f 5 9m.- were " due to a.. U>ad 
factor of 60 per cent, and j 
iotai passengers earned 
-Scheduled flights 'Of 780$Q0. 
'This represents h.30 per f 
increase tn Allans' f ■ ' 

rate that has been maitrialncd' \ 
over the pa&flveyoaxS. 

Interest paid * on loans antr ■ 
losses from tereigffresriiange ' 
conversions' aecoant for the 
difference between operating 
profits am?.. 'net .profits.-, . , . 

Mri vA' GJtapdonr . -. ^Iso 1 
■ ann ounced that Alia wifllease 
two Boeing 707 jets to expand 
its operations eariy next ygo? 
ana will buy three hew Boe^ig 
727 jets to be deifvered one 
- every year starting in 
- He dso saW a deeis&n 
would be made in June abwt 
which wide-bodTcd jet>iU>e, 
'.chosen to replace Alla's we; 
107s. Four models are undri* 

L consideration, he aid, ^ 
DC-1030, ■ the - Jtockhe^ 
Tristar 500; the Boeing 767 
and the Aiibus B4 ar 3i0. - 
> ! StrbBg^exforaiaime of tte 
• ifc nwiiitlM tli direct Amman* 
•New York route fias abo 
prompted . Alia to, . double Jfs 
" frequency to ^Four 'times a. 
-weeiki'^RrUh a new once-a-M erk, 
"tfervfcfe - - from , New Yoi^t, 

' onW®d5. '_ to Honstoa. The- 
•, Nov Tork’.route. . using Bocirg- 
junibP.'jhCs,. has registered i . 
very higb- load' tector of over>. 
. 70 per cMC:,feachlng 90 peff 
cent tn ther -high season, Mfc 
Ghandour revealed. - • > 

.- . Alla’s ^ ; ebnJShaed . strong; 
ghanriaJ ; performance^ wtlh 
also ^ prompt tt 'to. open pew., 
routes- to Manila and Scoot 
next yeari and- . Increase the" 
frequencies "ot profit, of its.. 
European and Gulf roatex.. 

' It also plans to- be the first 
Arab. Airline; to ffy to Souft- : .- 
America" in: the .-second half.; 
of next year with two jrnHl»s ? 
to- Ko ■ de-' Janeiro' . pfaumed v 
via Kano; Lagos, ‘ Dakar, and.' ; 

Singapore ends deposit margins 


r \ 




SINGAPORE — The Slock 
Exchange of Singapore has 
abolished the mandatory 2D per 
cent deposit margin which 
member broking firms must im- 
pose on clients trading on a 
settlement or forward basis, and 
also reduced the brokerage rate 
on such contracts . 

The exchange also said that 
its computerised central clearing 
house would start its trial run 
on January 2. 

The margin ruling was 
imposed by the exchange in 

September to cool the share 
market which had . already 
reached a feverish pitch with 
prices at high levels.. 

Members uf the exchange 
generally welcome the move 
then as a safety measure for 

themselves and investors.. How- . 
ever, some market sources have. - 
blamed the decline in ’ the' 
market since.- - then on' ■ tins- 

The ' lifting ' of the margin, 
requirement on settlement con- 
tracts on the Big Board” took' 
effect . from yesterday (Mon- 
dayji-:-! while, that' -on .1^6 
“ Ordinary Board " '.will, chine - 
Into force :on January 2. 

The?./ exchange currently 
operates two fbrzns of settle- 
ment contracts — settlement 
deals on the. “ Oidmary Board." 
where, the board lot - is "1,000 
shareware settled at the end of 
every: month,' while those on 
the '-Big Board,” where the lot 
is 2,000- shares, are -settled at 
the middle of each month. 

.The Tiew/hrokef^e - rate for ; 
all^ V settlements is-;L25 per cent/ y 
a -quarter per ’cent less than the * . . 

old Tate. • - " . ’ y ' 


old Tate. 

• There wRl, however, be «• 
newly ■ imposed, registration a hit 
clearingrfee df 04- per cent' on 
settiemeait; contracts-.-/ 7 .- 

- ■ The-plap, fqr^ie settingiup -of 
.the IcteBcriug/LoMse c byStem, an 
inregraf .p art df/thfe exebangd’s 

- plan' -to Improve . the efficiency 
jof -tfe Singapore market, was 
^ announced at ; the beginning of 

this year. / 

Thie exchange said that all 
exchange members' had. joined 
the ^clearing; -house, ' thus hnply- 
iwg that 'the -two nteinber firms 
" which Kad earlier opted to stay 
;Out , of> the . have how 
. joined-:- •- . 





Malay awata boosts sales 
in building industry boom 


demand for steel lifted pre-tax 
profits at Malayawata Berhad, 
leading Malaysian steel manu- 
facturer, by more than 61 per 
cent, for the first six months 
coding September. 

However, with the end oF its 
pioneer status, ihe company 
must now pay income tax, and 
this has reduced its net profits 
compared with the comparable 
period last year. 

Pre-tax profits of the company 
increased from 4.1m ringgits 
fiFl.Sm) in 6.7m ringgits 
(S3.07m), hut after tax, the 

profit 7 . is only 2.4m ringgits/ 
compared with the tax-free 4.1m 
ringgits the comparable period 
last year* • 

The- company -said, sales rose' 
hy 27 per rent to 62:4m ringgits 
because ' of strong demand.! 
created^ by’ : Intensive 'public 
and ’-"private • construction-: 

The same market conditions 
are expected to prevail uhtil v 
the end of the. year, but’ ’the 
company said it is tmablfr- to 
take [advantage of .the situation- 
because of Its - limited .prodU^ 
tinn caparity. 

New U S. branch 

for Leumi 

. Daniel 

TEL^AVrv '^BanlrLciimi, 
Israel’s ... oldest: a3)d..v largest- 
hank, .h'as ■ opened -its /tenth:, s 
^branch, in.'. New: :-Yoffc '’.The 
branches, : . which , ^ rovide ^^ufl 
bahfcmg tervioes'ih idditidflittr. i 
. terteru^"tnvcstments 

; are _ ; : op erated . .ity ' 



-in~TnfrihtbI ‘T-jypifPp 
Jn^wdrk-' f 

• V - - . - - . ■ . . r : r— ?■?■*. .*«. vr--- '1J- * y* ** ■ -a 5 -*/*: 

'pnica .’Bic'dar Dedemlwr ;19^ 19TS - 


"■s . 


« .Alii 

'.V* .. 


u. l'w^’ 

•■ r-Tj-‘ 

' ^ • 

:•-. • ;-*CiK 

... ^ 
* Cijf* 

.• ^ f 

.... .’ ’ ■’'*■ 

...... . 

; : >a| 


Cwopanfea .aiiaiiarjffiUr 



Saturday’s: OP^C„dMisjdii 16 
raise erode 621 prices £y 14{per 
cent - prompted .adother sharp 
. decline . ift the TllS. iMIu in, 
yesterday’s foreigh ' exchange 
market. . Although a rise .was 
expected, the ioor-phase increase' 
was - considerably larger * titan- 
had been -hoped for, and the U.S. 
currency . came under heavy 

pressure from the opening of ; 
trading: In terms of thV D-mark, 
it .fell to DM 1,8540 at one point 
before dosing at DVL J.85SS, 

compared with Friday’s level of 
DM 1.8930. The Swiss Franc 
performed in . a similar fashion 
and touched SwFr 1.6535 'during ■ 
the day before closing at. 
SwFr 1.6565 against the previous 
ctoretef SwFr L68S7h- ' 

Central, bank-' support through- 
out the day prevented the dollar 
from -stipping: further, although 
at noon. 1 in New York.' Morgan 
Guaranty”* calculation of its 
trade weighted average depreda- 
tion! showed--* weakening to 9,4 
per cent from & 7 .per cent The 
French- frane-. was. also very 
strong, and finished at FFr 4.2650 
against FFr 4.3460, while, the 
Japanese yea.'. Improved to 
YlfllOS from Y195 J5. 

Sterling, opened at 52.0030 and 
dipped to . S2.0010 during the 
morning before- recovering to 
S2.D075 around lunchtime. Re- 
newed Safeness of the dollar 
pushed the pound further up In 
afternoon trading. 'and it reached 
a Jiigh V ?2I»9O-iMl00 before 
closing at 12,0050-2.0080, a rise of 


V -Dtt IB . ridind feteriiutf l.s;*Jumu. 

yauadSrerttait ' • . ' l. : ' '• 2.006 

CUSAtoBar 1 ■ ■' ■■.0.499 I. 


«• IS Irate 

CURRENCIES, MONEY and GOLD m ' ■■ ~ r ^ 

. World Value of the Pound 

J(v. 10 nte pays CImm One cuoatU ! 5t,i'-a- ^Tfarmuvgllit, 4 P J 

Day's Cl» 

Sjireatl I 

2.35c from Friday**; dose, on 

- Bank of England figured, its trade 
weighted index rosetoSS* from 

.. 63,2, having mood &t‘63J7 at noon 
and -63.5 - in - early -• dealings. 
Against: the D-mark, the' pound 
eased to DM 3.7$ against DM 3.75, 
‘while' the Swiss - ffarterwas also 

- firmer at SwFr, -3.326a from 

JwFr _3-345D. . . %.-. 

• FRANKFURT—' The dollar's 
fixing level of Ufl yester^ 
day was sharply down frphi Fri- 
day’s level of DM l£$60. The 
Bundesbank intervened at the 
fixing by buying about ; 348m, its 
largest support since last Febm- 
-*ry. The OPEC decision- To raise 
oil prices- was the raajh ; 'cause of 
the dollar’s decline. -v.~£- : 

PARIS — In very activd .trading 
‘ the' dollar lost ground 1 'after the i 
latest v on '■ price increase an- 
nounced. over .the weekend. To- 
ward* the dose of trading, the 
U.S. unit was . quoted at 
FFr 4JS582} T . ewnpared with 
FFr 43882J at Jthe- start of the 
day and Friday’s -- level of 


AMSTERDAM — The dollar was 
fixed at FI 2.0050 at yesterday's 
fixing, compared with-Jl 2.0540 
on Friday. -3 : 

ZURICH — After opening lower 
on the OPEC decision, the dollar 
showed little movement during 
the morning. Central-bank inter- 
vention had helped steady the 
U£. unit, although the-- mood of 
.the market has . deteriorated 
somewhat with regard to the 
dollar. The latter was quoted at 
SwFr 1.6615. compared with 
SwFr 1.6610 soon after- the start 
of trading. 

TOKYO — As in other' financial 
centres, the main feature of 
yesterday’s market was.the effect 
on the dollar of priee increases 
announced by OPEC* over the 
weekend. The UB.^- currency 
.finished at Yl9S325"TQinpared 
with Friday’s dose of Y195.75. 
After opening at Y19530, it fell 
to Y1B3.45 before recovering 
slightly around noon, during the 
afternoon, the dollarfe* Continued 
decline was arrested-, slightly 
when the Bank of japan bought 
an estimated $40Qhl . Trading in 
.the spot market accounted for 
8765m, with forward, trading at 
Sl69m and swap dealings total- 
ling $747m. 

CanadlnB $ IDS, 

| (iiiil.lur 8b 
BelRtan P S 

UuUdi k a 

D-Mark 8 

Port. M«. it 

Spaa. Pea. ■ 

ldr» Wi a 

K. 7 

French Pr. gi. 
> tiwrdlahKr. 8>g 
i Y«a Sl| 

AaafcriaSrb. 41® 
, bow Pr. 1 

Belgian ran lor convertible franca 
Financial franc 80.00-60. 10. 

8-82-fi.22F.nipj 2.21 0.87 0.77 i-.uin 
0-S0-0.Mc.pmi 3.78 jl JO- I.W.-.pni; 
!■*-** r.imi i 2.23 4-Si-.imi 
28-ID t-.uai, ! 3.06 Iffi-bb 1 
>4-2** iwdlirl.44 1H? ■■will* •- 

Brl-a-i |i( |,D1 

BO- IDS t'.ilh 

j S.2S IflJ-Si |.( I«n ‘ 

■- 10.68 1 IM-420 r. .Ila - 

45-itB i-.iiii -6.82 (fa-eni iiui— 7.B7 ! 

2- 4 lira ilia -2.1B 7-10 lire 01. -2.0B -. 
'3-lcmpui 2.38 IC-4 ura pm 1 1.9B ' 

3l4-2l4r-pui 3.88 32-8$ c. |uu : 4.33 

3- 1 ur* iuii 8.75 V-7urci|iiii | 3.67 
4.M-4.My pm ia.9O|ID.85-l0.4&Y|>iJi 11.10 
16-6 Kruno. 4,41 W3.3S kih I'm 5.37 

4- 3 e. pm 12.63|l I 10 |.m 12.65 


Six-month forward dollar 1.55-1. 45c 
pm, 12-month 3.40-3. 3£k pm. 



Pac. 18 apraad C toaa Qua mootfi 

Canada! 84.3S-84.56 8436-84^38 0.05-0. 06c pm 

Nathlntf. 2.0070-2.0238 2. 070-2.0090 0JTM).15c pm 
Belgium 29.36-29.58 29JS-29.37 5-3>jC pm 

Donmrk. 5. 1800-5 J02E 5.1850-5.1900 OM-IAOoradm 
W. Gar. 1.8565-14)095 1.8575-1.8685 14S-1^0jH pm 
Portugal 46.16-48.40 46,16-46.30 9-1 Be dla 

Spain 70.60-70,82 70^0-70.85 30-50o dta 

Italy 834.10-338. 0 834.10-834^0 2.25-2.7SC dm 
Norway S. 0350-5.0680 S. 0350-5. 0370 OJSOc pm-par 
Franca 4. 2580-4 J1820 4.2S7S-4.2625 1.004).60o pm 
Swodan 4.34404,3700 4,34® -4 ,3476 O.SO-O.70am pm 
Japan 192.7S-193.80 193.00-183.15 1.85-1 .75y pm 
Austria 13.80-13.® 13.61-13.® 6.5O4.E0gro pm 

Swlu. 1.6648-1.6633 1.6550-1 .6570 1.87 -1.62c pm 
t U.S. cants par Canadian 

TUraa m onths 

0.10-0.13C pm 
1.01-0. 93c pm 
19- 17c pm 
3.85-4.35orcdia ■ 
3.G2-3.S7pf pm 
90-160C dia 
155-17Sc dia 
7.00-8, OOc dia 
O.OO-O.IOc pm 
2 .90-2. 40c pm 
Z-50-2.30ore pm 
4.58-4.43y pm 
10-13gro pm 
4.73-4 .68c pin 






December IS 


U.S. dollar 

Canadian dollar .. 
Austrian schilling 
Belgian Crane . ... 

Danish krone 

Deutsche Mark ... 


French franc 



NonrcRfan krone 


Swedish krona 

Swiss franc 


Bonk ot Morgan 
Docatnbar 18 England Guaranty 

, Indca cliangas 

Starling 63J2 -40.6 

U.S dollar 83 37 - 9.4 

Canadian dollar ... 79.07 -18.2 

Austrian schilling ... 146.21 -I- 19.4 

Bolglon Iranc 114.11 +14.7 

Danish krona 117.52 + 6.5 

Dautacha Mark 149.53 +41.S 

Swiss franc 196.82 +94.0 

Guildor 124.® +20 6 

French Iranc 99.48 — 5.8 

Lira 54.39 -49.0 

Yen 149 61 +47.7 

Based on trad# weighted changes from 
Woshmgtan agreement December, 1971 
(Bonk ol England Index -100). 

Arntutlm Fpn 

Australia lAilUr..,, 
F Lilian 1 1 Markka.... 
Brarll Cmzelm.. ,., 
(!rtek Uracil ma..... 
Hung Krai; Dollar. 

Iran Ilia] 

Kuwait Dinar <KD| 
LuKembuuig Fianc 
Malaysia Dollar.... . 
New ^ealaait Dollar 
daiHll Arabia Slyal. 
Flngapnre Dollar.. 
Sooth African Rand 

2.968- 1.978 
1.7465- 1.7515 
4.35004. a 650 



3. 9880-2. 0900 Denmark 

20.2020.70 Fraxtre 

55.90-30.80 kiormauj . ...... 

4.78304. 7890) I lab’ 

73ls-75lj Ua|ian 

0.272360.E72G6 [N ether Inula.. 

29.33-29.37 N.>r« H y 

2. 1750-2. 17701 Purt neal 

0.9407-0. B44o!s pain 

5.3375- 3.3400i3wltnr la . . 
2. 1620-3. 1630jllnlu»1 State* 
0.8630-0.67601 V upualarla ... 

( A' 

• N.iu* JSat r* 

' 27-2B 

I 59V61>4 
1 10.40-10.50 ' 
; 8.55-8.65 

! 385-395 

I 4.004.10 

■ 10.06-10.20 
; 88-98 

I 41-45 

Rafo given far Argentina is tree rate. 

wdiaik - 

w Yen ljBOD : 

Franc 10 


l^aUmJfiOO , 

Ctaiiiian Dollar 
Spkfon Frane JCO; 

- . 0-301. 



4.365 i . 

' 1.122 - ■ 

' 0.B86 7 

• ■aaso •} 

. Japniirae lun l rnuivu Fnu.1 pwim Fraxiu- i iluicli DuihI 

">ltA5 ■* -21610 

96 16 2.120 

251.7 ' 1 - 6.109 

a ■ | uv. mu I'r.iih- 

The table below gives the 
latest available rates of exchange 
for the pound against various 
currencies on December IS, 1978. 
la some cases rates are nominal. 
Market rates are the average of 
buying and selling rates except 
where they are shown to be 
otherwise. In some cases market 
rates have been calculated from 

ihose of foreign currencies to 
which they are tied. 

Exchange in the UK and most 
of the countries listed is officially 
controlled and the rates shown 
should not be taken as being 
applicable to any particular 
transaction without reference lo- 
an authorised dealer. 

; Abbreviations: (S) member of 

Place and Local Doit 

Afghanistan Atghaui 
Albania . .... Lui. 

Algeria ......... Umar 

..i,_ i Fo-n.'Ji Frxm- . 

■ ■ > «l«iiiinb I'ndx 

Angola Ku»n* 

Antigua I!. L*mt«nii S 

Argentina Ar. IV*., Free Ua 

Australian,... Aiiirasuw $ ■ 

A nit r la N-iuiiuig 

AxurW P>irti>|>. £m:u<Ui ; 

, £ Starling 

I Bahamas'* 1 - ita. la.iiar 

&mpla<tt^-li(S, Tavn 

XVlIrrsiD lhi.„. Ilnur 

BoJeorlf lain. *|u.rv*rln 
Uorlouluat-',',... BarLmli^ t j* 

i Belgium 





Bril i tin 








Jt. Pram- 

R F 

».'.P.A. Frauc- 
B*ut > 

Indian llnpep 

Hnlii-ui, Iwu 


l rn-vnv ;; 


Unnu'i S 



Buriinili fnttiL- 



0. 770 ' 
4.0 1 1 

lit in 66.86 

427 1< 

16.08, -k) 


1. C976 

Plan and Local Unit , 

Falkland Is. . FBlktend 

Fart, I* Denioh Krone 

Fiji I* Ftil S | 

Flnbuxl MorL La j 

Frame Fttnrli Frane , 

Fr.Ovuikl* L’.FJk. Franc j 
I Pr.liuism.. .. Ixaul Fran,- . 
Fr. Pa.-. !».... c.PJ*. Frane i 

1 Gabon C.P.a. Franc 

j (IsiiihH Uolul. 

: Wn««heMark| 

r,iiaas (?, crti 

UiMir.ltar fKl. Oihrahar £ 

liilhen I* Auit. Dollar Dracfaiu* 

linrnluiil Daiuali Kroner 

hrcitub i.s-... K. i^arrlbran S 
(■ue>I«Ii>u|v... IjuI Franc 

Unaiii. I S S 

I i nai a ms Viwi ral 

(■iiinoA Hep... sily 
Guint* HKeau 
Uueaua iSt Guyanefee S 

Tabu of 
£ Staring 

the sterling area other than 
Scheduled Territories; (k) 
Scheduled Territory; (o) official 
rate: (F) tree rate: (T) tourist 
rate; (n.c.) non-commercial rate; 
(oa) not available; (A) approxi- 
mate rate no direct quotation 
available; fsg) selling rate; (bg) 
buying rate; (nom.) nominal; 
(exC) exchange certificate rale; 

Place and Looal Unit 

(Pi based on U.S. dollar parities 
and going sterling dollar rate;. 
iBfc) bankers' rate; (Bas) basic 
rate; icmj commercial rate; 
(cm convertible rate; (fn) 
financial rate. 

Sharp fluctuations have been 
seen lately in the foreign 
exchange market. Rates in the 
fable below are not in all cases 
closing rates on the dates shown. 


Mata pa Kp. 
Malawi jSl... 
Malaysia uii.. 

Mali lip. 

Malta «) 

Martin iqua... 
Mauritania ... 
Mauritius {tjj, 





Mammal.. _ 



Mfl Frane 

Mai Hu nee 
Mall Krone 
Mallow £ 
tool Prana 
Oupul.Va ! 

M. Rupee 
Mexican Pew 
O.R.A. Krone 
TVoneh Prone 


M. Uarrlbran f 
Mo*. BkikIo 

\ Value of 
| £ Sterling 

; Veins of 

Place and Local Unit ; £ Sterling 

ID. 57! 

| 82.70 

pheT-Si— . K.t'xrtbNan S i 


! «7'« 


, 1.6275 

.-v.Lu.-l* t£. I'anMimti S - 


j 4.5675 

■*11, Hiem* L. P. A. Krara.- ! 


| 7.882 

"*l.\ murniiSi E. Caribbean S i 


! 854.5 

■Nt'i-mlnr til... iv+.n | 


« 738 

Sunni* f \ dii_. IW S i 


1 B MS 

■«n M»nn-i„ Italian Lire ] 



."-a-i lunir .... I’jjmo. LaU'lu 



Samli Arohin . h v*< 


1 46.61 

L.K.A. Franc • 


V 427'* 

Sevclipllm S. Kuprr i 

IS. 35 

! 8.545 

Mi-rttU’nr is 1 



' UjHmuli 

a , .\F..1. Franc 

! 427:* 

’’jtllH-llMIt > 


'TMIII-I. Peseta 


' »|*- V . iocuio 


l*\. li. S 


1 • F. .1. Knini- 

«27 '4 

L'.F. \. l-'nmc 


1 . Pi-.. 

(Bk 67.71 

K-iuiiiinl.i Yuan 



(Fi 80.20 

». > . \. Fram.- 

427 >* 

I'.f. 1. from- 


L ■■■...-) 




l'l |<ni» £ 

> (ifHii-ID.C 
1 ip. 21.20 
if >1 >16.55 


ll* iii-li Knmcr 




h. * nri:>lraii S 


I'.'iiiiiih.-an lV*o 



(III 49.94 

■ it 55.91 

Fenian £ 

- : r. 1.5G00 

Kiln.-.piaa Birr 


I'h. ala 


Haiti Gourde 

HunJnra*- llej, Lompira 
Huu^Kou^ia, H Jt. S 

Hungary- Funnt 

Iceland ■&> i Kntoa 

I >p1ih <S, Itvl. Uupe« 

liitii>neNta Itupiali 

Iran Hia 

I ra<i Iraq Dtuar 

In*!i Hef Ik,.. Irish £ 

I atari Israel £ 

halt Lira 

Ivury L'uosl... I'.F.A. Frauk 

J amaica 1 8 1. .Jamaica Dollar 

Ji|mi Yen 

Juniaa i&i..... Jurdan Dinar 

Kampuchea. Ibei 

RpuvniM Kenya ah ilium 

Kiwrs f.Vtlu... tt'nn 

1 K"i(« iNJ, '... 

Kiiuvit itfihi. kuasn Dina 

Laos. Kip Pro Po 

Le'-nnun Lebanrae £ 

Drnrlho.. 4. Hand 

LlUrrl* Jjlorotn S 

Lilya Lal-\an Dina 

Urvlit‘a-in . ..awi«. Frone . 
Ijixemlaiurs Lux Frane 

I 10.027 
t B-81 
Ifcoiuj 72JI 

Hanrn Is Auai. Dollar 1.7490 

Nepal Nepalese Rupee 24.086 

Netherlands., Guilder 4 .ii3 

NeCh.Ant'les. Antillian Guild. 5.6896 

i Franc laS. 10 1 

New Uehn.ies ^ Auj(t ]jm 

i K. Zealand (S)N.Z. Dollar 1.8900 

Nlraragua Cordoba 14.11 

Niger Hp. C.F.A. Prone 427 ■* 

Nigeria (S).... Naira I 1.20732, spl 

Norway Nmg. Krooa ! 10.10 

i ■«= 

Sincajmie isi. Sinkapcre 8 
nniiini»nla.iai.~iiininiHi l». 5 
S'linli Uc|l... Aim abllliu" 
Silt, \inrai5* Hand 
S. W. Airinm 
l'erntunra tSl S. A kand 

rs|.i>«in I'twM 

S|«n. jairt' In 




Pakistan Pkot. Rupee I 19.0025 ,-k) 

Panama Ballwa \ 2.D065 

Paiiua.V.U.lM Una I 1.38GD 

Paraguay Guarani 260.60 

P*pl> D. Up I 

of Xenini is*) t>. Yemen Dinar, IAiD.68 49 

Peru Sol |exj-iA ,166.66 

Pbiilppmea... Pb. Pew I 14.70 

P“*» *,» ISSSSm! I -BOM 

!-) ,e ';v:S:l! 

Purtug*! I’rbo. Racudn | 92.70 

l*i«l Timor — Timor Kgrurfd B2.70 

Priixdpe I lie. Pgrc. Kacudo 92.70 

Puerto Rico... Li. S | 2.0055 

Qatar (S) ,^»ur Uyal | 7.7D 

North tirlm. 
>n l*io ka n.i 


Sira/iuunl (Si 



Tanzania (S.i. 


Tub*, lie 

Tniupi lb. <S.i 
Trliililml i’.i, 



llirlbk fa... 

• s. Ik ir,i|«e 
Mjdan £ 

S. tinlkler 
S. Kp<iih 
?«i* brone 
S’j'ria L 

Neir Tnlnau 
Tan. Slllllmic 

C.K.A. Krauc 
Triu. j; lula^o 
riiiiibum Dinar 
Tiirkleli Lira 
l-’s. S 
Auciralian S 

Uganda iS.i.'1'k. Sliilling 
i. mteii States l'.S. Dnibir 

l nifiav .... 



f.'ppei Vi'lla., 

I'rucuay IVan i 
I’.A.E.Dn-tiam I 
li- Hltlla* I 

L'.F.A, Franc I 

: 4.5206 
! 1.7614 
I (A 12.62 
! 1.74861 

' 141.00 

51.0205 ogi 
; A 0-8022 

i (A ,7.8716 

• IP 72.18 -' 

592 775 ««) 

' 427 >a 
1 1.7490 

j 14.64 

, 2.0066 

Iiciik 14.01 
I U(m 15.88 
I 7.70 
I 1.56 

I 4I7U 

Vatican Italian Lire 

' eneutela Uuluia 

Reunion.. I 

lie do »' French Franc ' 8.646 

Rhodesia Khodeaian $ j 1.5900 

: 1-m 9.07 

Hnraairia Im i u/r ■ 24.46 

itaanda Rwanda Frano ! 182.78 

^ {sSiSi 1 ., 

Vinju.L.U.ri. I .S. Dollar * 2.0056 

Western { , 

Somoaid,.... SaiiHouiTala ; 1.5260 

Yemen l’>«i ’ 0.08 — 

\ u^ublavia.>. .New Y Dinar 1 55.9658 

Zaire Bp Zaire ' 1.05(9 

Zambia Kaai-ha 135 

* That part el the French community in Africa tormariy part ot French West Africa or French Equatorial Alricn t Rupees per pound, f General rates of oil 
and iron exports 84 231. i; Based on cross rates against Russian rouble. *• Re re is the Transfer market (controlled), ft Rate is now based on 2 Barbados E 

to the dollar. %t Now one official rata. 

Foreign exchange. We del iver. 

— j « : L-5r W: 

||^ Midland Bank International 

H M H - Midland Bant Limikd. Inienul ym jIDnourti. 

•! •«“§ bOGiacvidiurchSlreeL Lundon Lt.iP3BN.Tcl.UI-bWi 9*144. 



■7*!:’-" / . ' ■'*■ - • ' - *7 

1 U- i •I*’. LWbOuui 

■ -.f. Dee. IS-. • Starting. • UA Dollar' . Dot tar 

thbort lltallss 9lfi-i01«J' ‘ . 

-I dRya* naaa.j. lUf-lU* -• 97a*1.0»a- •.-V»s«ia 

aieutb - IZ3a-I2 >4 - lovtus 

Tfiroe moqtlu. — ' i34» isa*: H*-X114. . ;= lOBs-Xl . 
falx months. . ' • 13 3* -1^7* • . 18-181* - 1U*;- 1 1 ?< 

C b»3*w- -.-L:- :ss«9-.i4: - : lOA-iOf? 

UA Dollar 

. .Dollar . 

Dutch Guilder 

• . 9)0.101]- 
- i07b- tue 


' . Tlft-Bi* 
•.-7H8i* ■ 


f: 105fl. 11 

- Ui£-llS 
; tOA-iOfjf 

10-1 DM 
10 -101* 
97 s -lOi0 
BSb-6 T0 

Weak Herman 


Frenrh Pram: 1 Lallan Lira 

61| 71, 
9-9 1* 
10 la- teas 

13- IS 




Ji|ane > r fra 




The folloopna-nominel ‘ rates -were quoted' for London dollar certificate* of deposit; one month 10.90-11.00 per cent; three mornhe 11. 50-11 .60 per coni: six 
rnonthsTII .86-11.95, per cfiht: one year. 11.50-11.60 per. coot. . _ \- „ 

-■'-tiing-wrm Eurodoller' deposit*; Two years ,1W*-11 per cant; three yaara lOVfOt* per cent four years 10- UP* par cent; Wve years ID-IO^* per ceni. nominal 
ctfaaing; rates . Short-term rates era ceji lor sterling, U.S. dollars apd Canadian dolUre: two-day cell for guilders snd Swiss Irenes. Asian rates are doling rates 
in'^ingspore. - 


. ^Short-term interest Tates 
- ’ 4 showed htde change in Europe 
• ' . i yesterday. Day.-to-d ay money was 
t sUghtly / fifiner itf places but 
fixed period Interest rotes were 
afanost' entirely nnchanged. 

! FRANKFURT i— Cali inofiey 
; rose slightly to S.4&34S per. cent 
from 3.40-3.50 : per. cent, while 
. 1 ! one-month, three-month. .and sax- 
j month were- aU .unchanged- at 
ffif.- ilMaL - per - -oenfc/ .SEadttQi 
[i> funds -were unchanged' at <L20- 
k 4J0 percent 1 . ... 

AMSTERDAM Cali money 
. '-.was quoted at 1141a per cent, 
-.compared with 103-11$ per cent 
rfon Friday. One-month’ rose .to 

MJ-ll per cent from UH-lOf per 
cent, and three-month yes 
unchanged at 104-10? per cent, 
’and six-month at 9? -10 per cent. 

PARIS — Interest rates were, 
unchanged, with day-to-day at 6$ 
per. cent; one-month at 61-61 per ; 
cent: three-month at 65-61 per. 
cent; six -month at 6J-7 per cent; 
and 12-month at 7 4-7 5 per cent. 

BRUSSELS — Deposit rates 
for 1 the Belgian franc (com-- 
mercial) were: one-month 
per cest; three-month 98-94 per; 
cent; six-month and 12-month 
SJ-S3 per- cent, 

HONG KONG..— The money, 
market waa- tight with call money 
' at 9 per cent and overnight at 
88 per cent -' 

.- SINGAPORE — Banks raised 
their prime rates by i per cent 
.to i per cent to rates between 
■7f per cent and 81 per cent 
.Toronto Dominion moved up i 
per cent to 7f per cent while 
. Bank of America’s rate Increased 
by ? per cent to S per cent as 
-did Chase Manhattan, Moscow 
Narodny's went up by i per cent 
to 85 per cent. 

-;T: NEW YORK — Federal funds 
•Were slightly firmer in early 
-• trading, at 92-94S per cent com- 
.pared with 9H per cent early 
on Friday. The Federal Reserve 
Intervened to inject funds by 
way of overnight repurchase 
Orders as later rates rose to 10 
'.per cent. 



Gold rose $5J to close 82124- 
$2134 in fairly active trading. It 
opened at S211}-2121, influenced 
by the weakness of the dollar, 
and was -fixed at S212.20 in the 
morning and 3212.90 in the after- 
noon. The highest level touched 
was S214-214J. 

In Paris the 124 kilo bar was 
fixed at Fr29,400 per kiln 


Moderate assistance 

j-. . Bank ef England Minimum 
Lending Bate 124 per cent . . - 
(since November 9, 1978) 
Pay4oday..<redft_ oiay’ .have 
been to .slightly short supply 4n 
Jffie Lqadqa money imaaket yester- 
day. tnit the amount of assist- 
ance given by «he autisomties was 
probably a little overdone. "They 
bought a anoderate number of 
Treasury ibsats ifrom .the discount 
booses, arid tranks are now 
-expected to carry over eusplus 


balances, whkh will help to: 
relieve the : even afl shortage 
expected today- . 

. ."Banks brought forward modest 
surplus baQaaces yesterday, aod 
tite 'market was also helped .by 
a large excess of Govern- 

ment dtebuismneaits over revenue 
payments to the Exchequer, and 
a' sanail manbar of net . maturing 
Treasury hSHs. . . 1 

• On the other hand there wras ; 
a fafriy. large pre-CJmstnKss rise 
in itiie note dheutetion, and re- 
payment was made of the' taiige 

Gold Bullion la fine' 

"unco) . 

Clew — 

ripen iu« ..... 

Morning fixing 

Afternoon rising. 

Gold GoSna 

rium equally.. 


Near Sovereign*. 
Old Soverelgni... 

Isec. IS Der. 16 

S91S1-2161 1 81002.2075 
■Sf 11^-2185 jS204*-2D5j 
.S212.20 206.60 

(£105.704) | (£106.7861 
.13212.90 S206.6fl 

,(£106 JITS) ll£105.BG5) 

Amount lent to the amuses before 
; the weekend. 

. V. -Discount houses paid 115-11} 
.per cent for secured call loans 
.itrtoe early part, and dosing 
;batances were found at 10J-11 
per ceait. 

--'In the fintertwnk market over- 
nUgfat toeos opened »t llt-US Per 
.cent, and eased to 11-111 per 
cent, on expectations of a - fairly 
fiat gay. Rates finned to 11J-1U 
'per cent, but feW to 10J-11 per 
:-oeot to the afternoon, before 
leiDstag.'at Ilf-12 per cent. 

Gold Coin* 

lnUrnatlaaaJlr ... 

New Sorereigni 

Old SoTBraign* 

S20 Eagle*... 

310 Eagle* 

Bl Eagle* — 

82247-228} 32181-220} 
.(£112-115) (£11011111) 
S 65+36} i 882 4- 64} 

(£31+424) (8614-524) 
8004-634 860-61 

(£50}-511) l£3SJ-aOJ) 

i BZ 1 3-221 
! (£1091-1 10}) 
l (£28-28) 

uam-aiii | 

3230-296 I 












III - 


-- Dee. 18 - Certiorate 

".■■■ 1978 -• on deposit 

' J Lrvai 

InteriwBk 1 -Auiborttr 

I depaelta 

Local Antb. Finance DUccont EUglMe 

negotiable Buuse Company raanet. Treaniiy Bank 

i*wd* Deposit* Deputil* depotit filUee - Bill** 



-i d»y* notice.; 

2 dey* or 

7 flay* notice.. 
One mouth ... 
Tow months.- 
Throe' mm the. 

' Bxs-Qhnzttu u 

Nino irumLliH-- 

: Oao jear .. .^; 

- '. -1178-18. . — 


.. lfiBq ISA 

:: SiSt; 










12- 121b 


ii5 B -iai 8 

113«Ti17 s 

. 12-122* 

12 ln-12 1 8 
12 3 8-12 Jg 
115* -12 

: -11J* 


(S214.63 .per ounce) compared 
with Fr29^00 f$214.00) in the 
morning, and Fr29,050 ($207.47) 
on Friday afternoon. 

In Frankfurt the I2i kilo bar 
was -fixed at DM12,720 per kilo 
($212.71 per ounce) compared 
with DM12,555 ($208.06) pre« 
viously. ' • 



Prime Rate 11.6 

Fed Funds S27S 

Treaaury. Bills (13-uieek) ... 9.06 
— I Treasury Bills (26-woe It) ... 9 JO 

Local a udi orttv end finance hoasea seven -days’ notice, others rtvah^jla iffi^ fiysfl. * tong-Uria local authority 

RWltgage ifiMa no mi nail v thrM yairs t2 , a‘12 1 i par cant: four years 12 *- 12 y pgr.canp Hva years 12V12^t per cant- 
^.♦BanT bill mes In table ara°buyW9 raw Mr prime paper. Buying "»• for tour-month barik bills 11“» per cant: 
-tour-month 'trade' biltt- 12 ^' per cant. - 

?• '.'ApWai rate selling rates' for oWmontb , Trticu^ bill* 11V 
" hfw hfN* iiiriii'* Mf T*nv • Ao’orcxTmal® BMlbna: f»S6 10/ 0nB-m6nl« oaniE wii* w'i per Mnt; two-monw ri*Tv. P^r 
S5TM gSSiJF^Spu trad, bills 124 P« cent; twq-monrt, 1JR, per cenr end d» three- mnrrth 

pfar'eant, ' ' 

* Fmancn Rirtae faublishad by. the Finance Houeas Asstmatlpn) 114 PW cent from Dscember 1. 1978. 

/* S| 8 sum.7t seven day.* -otje. MP f» ^ deming Bank Bese Ratu far lending 

. . get cecit,' Treaauty BfHs; Average tender rats* of -discount 11 j/» P Br treni. ■ 


Discount Rata 


One month 

Three months 

Six months 


Discount Rata 


One month 

Three months 

Six months 


Discount Rate. 

Call (Unconditional) , 
Bills Discount Rare .... 








A Government Financial Institution 

Supplying long-term funds for the 
•promotion of primarily urban, regional 
and industrial development in Japan. 

Total Assets: US$19,261 Million 

(as of March 31, 1978) 

Head Office: 9-1. Olemai*lii I-cliome, Cliiynda-ltu, Tolito, Japan Tel: (031 270-3211 T^lrt: JIW3 DEYEBANK 

London Office: Clements House. 10-11 Wood -St., l-nndou- EC2V 7JB, U.K. Tel: {01 ) MKi-2029 Teles: 888907 JDBLDN. 

Frankfurt Office: ( Klirm-Main-Center). Bucket! Iteimer Lands trapse 51-53,6000 FraiiLfuri Jin Afam, F.H. Grrtuanv 
Tel: (Obll) 72 1.341 Teles: 412946 JDBF 

New York Office: Boom 306, 71 Broadway, Mew York, M.Y. 10006. U.S.A. Tel: (212) 269*0527 Tries: 421054 KAHIIN 
Wssbinglon Office: Suitr 600, 1019-19lh Si., N.W., Washington, D.C. 20036, L .S.A. Tel: (202) 331-8696 Telex: 4400(14 JUBK LI 




Year ended 
31st October 

Asset Value 
ioc. Investment 

Earnings Dividend Currency Premium 




1.83 • 












Total net resources £62,740.980 
U.K 59 5o . North America 27% Elsewhere 14% 

Points from the Annual Report 

— During the year the net assets increased from 123p per 
share to 129p per share. Net assets, total income and earnings 
per share were all at record levels this year. The board 
recommends dividends totalling 2_35p, compared with 2.05p 
last year. . • 

— As mentioned in . the interim statement, the board Is 
restoring -a greater overseas content to the portfolio and, at 
the year end, the U.K. proportion was down from 64% to 59%. 
—We look for an improvement in the relative status of 
investment' trusts (and thus, for a fall in the discount) when 
the effects of the Finance Act. concessions become fully 


Coach and bus bodywork, hot compression mouldings, 
' textile machinery and precision engineering 

Year to 31 st August 

Profit before tax 
Extraordinary items 
Retained profit 
Dividends per share (actual) 
Earnings per share 
















3.96p 2.45p 

* Record levels of turnover and profit. 

* Dominant II range of bodywork accepted as 
market leader. 

* Plans for expansion of Duple Coachbuilders 

include a new Service Centre at Glasgow. 

-Jf Engineering Division has had satisfactory year. 

■ 3 r Board looks forward to a period of continued 
growth in profits. 

Copies of Report and Accounts are available from the 
Secretary. Duple International Limited. Vicarage Lane, 
Blackpool. Lancs. FY4 4EN. 

^feancial Times' Tuesday Decernl** 

Companies and Markets 


Early Dow 16 fall on OPEC price rise 

» j . L..i. ■n.lmo' mwbAt TT 


S2.60 10 £1 755% (•”%> 
Effective $2.0055 35J% (34J%) 
THE WEEKEND decision by 
OPEC nations to raise crude oil 
prices 14.5 per cent next year 
sent Wall Street sharply and 
broadly lower in a heavy turn- 
over yesterday morning. 

The Dow Jones Industrial 
Closing prices and market 
reports were not available 
for this edition. 

Average, tallowing n decline of 
7 points last Friday, Jell 16.20 
more to 789.15 at 1 poi. The 
■NYSE AH -Common Index 
retracted 99 cents to 352.32. while 
declines held a substantial lead 
over sains in 'the ratio of about 
18 to one. Turnover expanded 
sharply to 24.60m shares from 
Friday's 1 pm level of 15.61in. 

Analysts said the OPEC move 
will 'heighten ‘inflationary pres- 
sures and imerease chances for 
a recession aiesct year. They 

added that it raises fears of 
further credit Tightening by the 

Federal Reserve both to defend 
the dollar and combat jHflatlon. 

Analysts, however, a tea com- 
mented tlmt itiie market appeared 
to be an a good position tech- 
nically to absorb the Shook and 
suggested 'it -would , stabilise 

Airline, Aircraft. Motor, Drug. 
Glamour and Computer shares 
were among the issues hardest 
hit. but Golds advanced on. higher 
prices for the raetai. 

Virginia Electric, the volume 
leader, were unchanged at $13L 
Among other actives," Pan- 
American World Airways lost } 
lo $6i and UAL 13 to -529*. 

Boeing fell 2 r i to S67J, Ford 
Motor ; to S40J, General Motors 
\ to S55 and Xerox li to $51. 

Among the few gaining issues. 
Quancx rose i to 52S5 on higher 
fiscal fourth-quarter profits and a 
stock split. 

Simplicity Pattern, which rose 
sharply on Friday on take-over 
speculation, reacted 1-}’ to $9J. It 
is to acquire a soft drink bottling 
company. „ 

Active Kennecott Copper de- 
clined 1< to 3201. 



Slrt-fc | 

lr. ' 


Al+xt IaIw ’• 



A-ldrei-"{jratjl' .- i 



Art an Lif-A l-s \ 



Al-ma : 

A lire- Lii'tlum... | 
Alfrtrlieuv J’tinerj 
Allie>< Chemuat..! 

A Hid sftnre- i 


A MAX ! 

Ainem'.lt Hes*.... 1 
A liter. Airline*.. 

A mer. Untnils. . 

A nier. HrneiU-art 

A mer. (Jan 

A mer. Cynnenii'l 
A mer. Hist. Tel.. 
A mer. KJevt. P-uv 
A met', bspw .. 

A mer.Hnme I'nri, 
A mer. Mt-li'nl .. 
Aiuer. Motor*.. . 
Amer. 3 at. lien.. 
A mer. ctsmUii'l. 

A mer. Stunai 

Aiuer. Tel. i 'l'el.; 





Anchor Hnokicu 
Anlteuicr H'jm'li 



Awtnior* i.ill 


AiliMUit Oil 1 

All. Uu'imelJ I 

Aiit'j Dai* Fro..... 


Amu PrwiliiT!'...| 
Balt. G«!> Kle* l...; 
JHamjor l*nnl«_.. i 
Bank Auierun. .. 
Banker- IV. N.Y.i 

Barnw OU 

Baxter T™verw'..| 
Beet re* Food : 

Breton Uickirremii 

Bell k Howell 


Menjiuet Loim 'B'| 
Betliletiuii M«l., 
BlarV A Decker.., 


UhvhiIl* ; 

Borden 1 

Hot- Werner 

Brand! lot 

Bnt»j«o *A" ! 

Bristol Myere | 

B.Prt A Dili it..., 
Bnxkvray GIbmi .| 

Brunwwiek ‘ 

Buc.vms Kne 

Butov a Watch .... 
Burl m^tnii Ntbn 

Burro mfli 

tamiil.vil .-'wp... 
LnnadlMD Piicif!c| 
(Jamil Kandolpb.. 


Comer 4 General! 
Carter Hawley... 
Caterpl Hat rnu.-i> 


Cetanese Curj'n - 
Coin mi A S.W.... 

Lertaintwl ! 

C**ma Aircraft 
Lhaiui'icn Inter.. 
Chase Manhattan! 
Chernicsl Blr.A Y.| 
Cbesebrgli I\>ni1..| 
Cbreale Syateui..! 
Chicago Bridge... 

Chrysler I 

Cine. llllscrvm. . 

Cilieurv * 

Cities Service j 

City Invwting....! 
Cleveiauii Cliff... 

C'.vaI Vrfa ! 

Goldie Palm I 

CuliuW Alkniau...| 

Columl'ta (nu ; 

Columbia IVl....j 
CninLmlion Kqk- 
Cum bust ion En—l 
C’rn'wcli BiIimii.I 
Comm, sa.ieriite.1 
Ciniipu ter a<.'i enc.1 

Cunu Luc Ini j 


Ci.m-BfU.-nu NX-1 

Consol Funii*. I 

C-.Hawi Nat Ga- .. 
I'ontuuifr Fonrr] 
Continental Gr[- 
CVnnneucal Oil.. 1 
Continental Tele 

Control Bata 

Cooper Indus 





13 * 

50 1« 

27 U 


32 * 



151 0 


501* j 
535* I 
30* l 
7* j 
22 1 2 
244 ! 
ZOl 2 i 
26 * 






27 1 j 


24 lg 





207 8 





25* 1 
50 I 

8* I 

24* 1 
55* I 






























227 4 
30 m 

26 1, 

33 4 


157 a 


24i z 
16 * 
267 B 
237 a 
147 b 







Corning litas*.. ..I 
CPC Int'mVUi'ai 


i. nx-hei Nai* 

crown /el iprrotvlil 
l. lllillliUll lilipUC; 

Curti-w VVnghi...| 


50 : 

33* ! 
25 , 
30* i 
534 ' 
144 I 

1 £'«■. f 


1 It. 

announced agreement with 
Curtlss-Wright on a joint slate 
for directors, ending a proxy 
fight. Ctutiss-W right slipped i to 

Value Index was 3.15 weaker: at 
146.15 at 1 p.m. after voiume of 
2.76m shares (1.61m). 

Volume leader Resorts Inter- 
national “A" shed $1 to $25, 
Syotex li to S334 and Amdahl If 
to $37. Syntex bas forecast , 
better-than-average growth 1 q its 
fiscal year ending July 30. 

Shenandoah. Oil, which is sell- 
ing some producing properties to 
Moore McCormack Resources, 
eased i to $40i in active trading. 
Moore McCormack, on the New 
York SE, slipped * to $3S{. 


In line with U.S. stock market 
trends. Canadian -markets were 
heavily depressed in moderate 
early dealings. . The Toronto 
Composite Index receded 13.7 to 
1,270.2 at noon, while Oils and 
Gas declined 20.9 to 1,743.0, 
Metals and Minerals 16.5 to 
1.057.6. • Banks 3.49 to 306.06, 

Utilities 2.52 to 193.25 and Papers 
2.55 to 153.50. Golds, however, 
contrasted with ah advance of 
235 to 1,372.0. 

Asbestos fell C$5 to C$443 fol- 
lowing news that Quebec has 
Introduced legislation to expro- 
priate the company. 

BP Canada, the most active 
Industrial, shed i to C$193 on 
40,840 shares in Toronto. 


Stock prices suffered a further 
setback across a broad front as 
investors expressed concern over 
the larger-th an- expected OPEC 
four-stage 14.5 per cent oil price 
increase, but some issues were 
showing signs of recovery 
towards the close. 

Trading was only moderate, 
voiume coming to 220m shares, 
down from last Friday's 390m. 
The Nikkei-Dow Jones Average, 
however, fell 51.00 to 5,978.46, 

industry, but Tokyo' market 

participants' Initial reaction to 

jA8.:«nn W4G fi 

rise. No other reason was cited 
for poor performance. • 

the OPEC's decision was rela- 
lively elm," one stock ooslyst »?«' 

jsssf^a sra 

normalise diplomatic relations mC, Galenes 
was really. big news. However, it Franchise de Nob*, 

didn’t have a strong impact on Bezel, Lyonnalse des Eaux jnd 
Monday's Tokyo market because Europe L 

it’s too early to guess what effects 
it wil have pn the Japanese 

Petroleums and Blue Chips led 
the market lower, while export- 
related issues such as tight 
Electricals and Precision 
Machinery Manufacturers 


Among the few gaining issue 
were CIC, La Henin, Gemecale 
de Fonderie and Saone. 


Markets remained easier 
inclined yesterday, further un- 
settled by the higher-fhan- 

clined, partly on the dollar’s fcdl expected OPEC crude oil -price 

on the Tokyo foreign exchange 

However, some medium-sized 
Blue Chips, such as Mitsukosol 
and Takeda Pharmaceutical, 
gained ground, along with 

increase, which stock 
traders fear will destabilise 
currencies once again and lead 
to more, inflation- 

also adversely 

while the Tokyo SE 
receded 2.99 to 445.38. 

“ It’s certain that the large oil 
price increase is expected to have 
serious effects on Japanese oil 
importers and the oil refining 

index speculative issues such as Heiwa that Esso-BHP would not be start: 

' \ 





Dec. ' 
■13 | 


: 12 j 


• • 11 

Dee,. - 
B . 

;. ilndustrisls 

; SCiinpoBlta- 

106 JS 





i'... ' 1 



187 J7 



SB. S3 

Real Estate, Mitsumi Electne, j drilling on the Exmciutiz' 








linn* > 

I'jrt Irxttutrii-, .J 

U«>rt | 

1*1 Al"ii t<* . 

r*c-it*"iH ' 

i 4itC(*|ii> 7tiL : 

llHimtr Ivl'wn .... 

Iiwrrrwvl ^ftanirk 1 

lin-tK(>b>.nv 1 

Ditnlai I 

111- IK-5 iWttlti ....i 

linver liiiq/n 

lKvn L'heniicni ...; 

Ilrnii, 1 

Urewi?r • 

1 initial 1 

Kn^k- PitcliW — : 

/taut AirllULK ' 

ijuunuin Kudak.. 

28* I 
a4* | 
414 i 
9* J 
J4ta | 
21 U 
49>? I 
49* ' 
43 <« ' 
25* I 
30* 1 
36* i 
















124* 1 1254 

9* . 

59 * ; 

34* i 





K. ii. * U ' 

K1 Bh*i Nai. 

hit™ 1 

Eniernin Klcctnv 
Hmerj Air Fr'mbr 

Knilian j 

K.M.I I 



lilin I ' 

Ex Mill 

Kairvlllbi Uini.'ix; 

Keit. Lvpt. SUt8» 
hrbluiw Tire. 
Kel. Nat. Houmi.I 

KI^m Van 

KhiitHnie -... 

Fl'-riilfl Hiww....! 





















27 ig 
307 e 

JitLru Hanvillf. J 
Johnson Johnson 
Julnifou Control. i 

K.Alnr 7.V«rp. 

Kaiser Industrial 

Kaiser steel- 


Kenneevai : 

Kerr AlrGw 

Kiihlc Walter ! 

Klmheriy (.'lark.-! 

Koppei-’. ‘ 

Kraft i 

Knjjtr Hi. I 

ijtaunrav TmU“...l 

l«v> Snails 

LiMit On. Font... 

46 7 S 





P<+. [ 

! Stock | 

lb \ 




















Hr v lull 

ICeinoMs Meul* 
llevnolil- K. J... 
lllch'win Merrei 
Hi irli well Lntor- 
llobm & Hun.... 



51 s * 






Liggett Tinxip... I 

Un>'tKlil I 

Li Lion IwlustMc- 
Lo.-Kueed Atre.-'lt*. 
l/nif bur ln>!uM- 
Lory Laliuiil Ltil.: 
Loulriana LsituI...: 


Lncty Sturea j 

*tiea.Corpn ' 

Mai-AI Ilian...-. j 

Mncy K. H 

Mtu. Buavar— . 



MKnne 1 Jk1I>Oi1.. 

Marshall Ftbki.... 1 























m B 












F.U.C ! 235* | 

Kunl Moiui 

Koivniiwi lick... 


Frunklm Sllnl .. 

Freer**.! Mine™ 





Kreepa.r Mine™. 30* 
Frauhnul | 261, 

FlltfUH IfKl Or. 










Slav Dept. Store*' 

MCA ! 

Ali'Denuott. i 

.M •Donnell Dou^' 

llaunw Hill 1 

Hcniorex j 

Merck I 

llccnll Ltncli I 

Mesa l'etmlenin-1 

63 >, 

35l a 

Mian Alin£& 11*1 61 

ii.ii.7i ■■,».. ■ fin 



M.iiftan J. I’ 


Murphy Oil 

Saifo CUemv.-al» 
National Can 









42* j 

Kovni llub'h I 

nth 1 

I Cl BHt Xus, I 

liyiler sy-lem....! 
Stile wav Sunv-.J 
.si. Jim Mineral,. | 
St. Hep? Paper .. 
Santa Ko IndK. ... 

aaut Invert j 

taxun I ml- I 

Suhiitz Urewin^.i 
Sch nun herder 

sCM J 

Sent t hper ^ 

Svuvil Ain;. 

Sc odder Dno.Cat! 










47 S 







23 * 







Sea Container 

Majcmui I 

awne 1 O.D .1 ; 

-SHira Kue'iuck.... | 


Sliell Oil j 

Shell Tmnapcn 


Stgnode Cun 

SirapUcttv Hat- 


Smith inter 

Smith Kline 



Southern Cal. l>i 

Staithi-rn On. 

Slim. Nat. Uer.. 
Soul-hem tVeiftc. 

SoutheraKallnat ; 





















G.A.F : 

ihmueii j 

ueu.Amur.Inv. ..I 

O.A.T.S I 

lien. 1*1 >le 

(jeu. Dynamic*.. 
Gen. Bleitni*.... 

Hen. F<»«lr 

General Mil* I 

Irene™' Motoi'i..| 
Gen. Fiil>. L'ttl...! 

Gen. Signal • 

ticn.Tel. Hleti .. 1 

lien. Tire I 

Gcjicw I 

Gcwffl* FttClfic-..! 

Iiera.iun.-e I 

Getty Oil 1 

32 lg 
557 b 




















Guudnch B. F... 
liu >1 year 'lire... 

Gnu M 

time* W.IL 

1 in. Allan FW?rcn| 
Un. North Inn. 


G1111 4 lVwtem..| 

Unit Oil 

Hal ilninuu 

Hanna Mining .. 

Hams Uorpii 

Hein » H. J 


29 7g 
397 8 
























Nat, l)lntillcra....| 

Nat. Service lad. 
.National Stirei.... 

Ns cnma?> .... 


Neptune 1st 

New Knglaod K.. 

New Kng land Teli 34* 
Nuupuit Mohawk' 14* 
Nuu^ana Sl>anr...J 
N. L Induatnea . 
Normiki Western 
North Nat- Gaa... 

Nthn. StatwFwr 
Nth weft Ai nines 
Ntbntot Haneutp 
Norton Suuon 
Ocx-klcntal Fetrul: 
tJjfiivy Mather...' 

Ohio Uiliauo 

Ulm —i 













217 S 
24 s , 


Hewlett Packard. 1 
Hoil-hi.t Iiuih .... j 
H-irneoiake j 
















187 a 








24 s , 







b.jup-Con .. A mer| 

Houston Nat. Gar 
Hunt (Hh_V)Cbm| 

Hutton (K.K. )...., 

IX. Industries .. 


Inger-*'!! lianii.. 

Ininrvl ~ted j 

lilMllt> | 

IBM ' 874.B7 274.851 

Itui. Kiavuur- I 23* | 23'j 

Inti. Harve-ier.. : 

Inti. Mtu AC'lieui] 

Inti AluiiuowL...j 

I nit* -.1 

Inti. Fnter I 

lull. Iteetiller j 

li'rtl. Tec A Tel... I 

lot™ Beef 

lb Inicruniinna/.j 
Jim Walter 1 












10 * 

Ovwr*." thips.-.| 
On eun Coming. . 

Owens llilnoib-. 

1'iicifie Gb- 

Mu.-Hk 1 L*htlnc-| 
1*811 Fwr.i Lip.. 
Fan Am World Airj 
Parker Uanmltu^ 

PrAholj* Inti J 

L*enn l*xl L- . 
Feunev J. C ..... 

Pennsaii [ 

Fen pie* Drug 

Fe-.plea Gnu 































S'w’l Bansliart? 

Sperry Hatch 1 

Spetir Hand... —i 

S4111W1 - 

Standard Bnunl.. 
Sol. t>ii Indiana 

SH. Ull Olik'. .... 
Sunff Chemteal. 
Stern Qc Uni" ... 


Sun Co 







Teneeo - 

263, | 
253, I 

247, | 
473, r 
54* I 
39* J 











25 7, 


























Zenith Kadio.— 
U.S.TrW.4*IBd(j 194,. 
US Trea-dllSTO/ES 
b Ji. yikday btlla- 

l»re. 1 


-la 1 

1 1* 




4 * 







!94 , „■ 







Aidtihl Paper 1 

Abiulm Hak 11 ' { 

Alcan AiuminJ'ml 
Aipuma Staei —l 

Aabestos ! 

Bank of Momma'' 
Bant Ains* Sendai 
Bsaic Uenxinxn.. 
Beil Telephone. ..I 
Dow Vallov ln-L.1 




26 - 


4s5i ; 





64 7g 

Teaoro Fetmieuini 

Texaco ! 

TexaERuh ! 

lexai. Harlem .... 

Texiut liu'm I 

Texan Uil It Ixa«,.[ 
Texas b'tilltiea ...j 

Timex ins 

'limes Minor— .. 

Timken , 

Ttnne. I 


Transcu I 

Tran Unton ! 

Tran-way Intra. j 
Tran World Air... 
Traveer-.;. I 

VrvX'-iHU tneniai. 





































BF Canada. ...... . 

Braeuin -_...! 


Calgary Power-. .j 
LamRo All neb .... 
Ctanada Cement. 
CanaiLr NW Lai>-j 
Can. Imp BV Cora 
Canada loduat 

Cun. Faclrtc 

Cun. Pacific lnv. 
Can. Super Oil... 1 

l^rlinp U'Ki-Wc. 

Cobalar Aisl<eat.>.| 

201 , ] 


12* J 
ik* ; 

93* r 


7 ll 2 

Chieftain ..... .| 


Con-. Bathurst... 1 
Gouninier Gw—.j 
Coe«ka Ueaaunx»{ 

CVsitain — 

Dana Devel 

Denison Allnei.. 
Dome Mints-...-. 
Damn Petroleum 
Dominion Brui*e 



Falcon' "e Nickel 
Ford Motor Coo. 

26* < 26* 


. 14* 









Gen star ............. 

fi Unit Veil wkrniei 
Uull Oil C-aJsaula.. 
Hawker aid. Can. 

HatliOKer....- ! 

Home OH *A* I 

Hudson Bay Mmt| 

Hudson Bay : 

Hialum Oil A Gas 1 

l-A.O... | 


imperial Oil j 

luco'A'.. ' 



























25* y 25* 

Perkin Elmer I 

I'llwr ' 

Phelps JJiwljte — | 
Philadelphia Kle. 

Philip Morrla 

Phillip* Petro'm. 


Pirney-Bowes— .. 


Pleswy Ltd ADHJ 

283, | 
21* | 
157, I 
69* ; 












P-Hiimec Klee 

PPG Induttrler.-l 
Pmrtcr Gamble. 
Huh. her. Bleot— 

Pullman . 


Quaker Dal...... 

Itapid Auiencnn 


KCA * 

Kei'aihlie "xt«u....j 

Ueaorls InU [ 






















154 g 





Triton Oil A Gas.' 


On b Century Fox' 


l-AKCU 1 


Unilever j 

I'ndeber NV • 

Union Bnncurp...l 
Umon Cartnric....] 
Union UomTiieo.-e 1 
Union Uil lhlll...| 
Union Paclh)^-.- 




305 S 




68', I 
27* ! 
34* 1 
83a 1 
54* | 
52 I 














Unmiyai 1 

United Brands ... 

LS Uami.iv i 

US Gypsum 

US Sli.te j 

US Steel — 1 

L id Trohnek^t«.| 

Ui' Induttnes.-. ' 

Virnmia BleeL — j 


W'allace-M urray .1 

Warnei -Cnninm. .. 

Wacnvi-l«nii>ert. i 
Wartc- Slan'oienlj 

IVeUr-PkCKP ! 

W’c-tem Baneotti 
Western N.Autet! 
Wwiem Cnmn...| 
We.tioch're bin.-, 
Wevwhaeii-ujr. ...] 

Whirlpool ■ 

White Ccm. Irut. I 

WTiiUim Co [ 

Wlwdiu Bind .1 

5U l 








































I min 

Inland Nnl. Gh 
Kairer Kennirre- 
Lmirt Fin. Curp- 
G'Utaw Utn. 'B' 
Meimt'n Bioed... 
.Un-* e v Fontu'-'Til 

Alclntnv. * 

Moire Coqin | 

Mouutaiu Slate K> 
NontmiH Mme—.j 
Norcen Knerjty...[ 

Nth. Temvin i 

N'u mac Oil A Gar 
■Jakw.a.d Pttro'n] 
I'mallc Cupper M. I 
Pacific Perroien m 


Peuptes Wepi.-i... 
Pla -e Can. A Op. 
Placet LH'veli'imil 
I’owerC'. irjs wal'nl 









23 jg 
27 ?r 






(JueUw-Siuruecii.j 7 1.20 j 

Hanger O' 


Kiu A 1 cm I 

lt..VBlUk...l « 
Uova.ll nil 1“ A”...i 






«- otuveM 
its. la j 








iheu Csrm 
Sherri tt >.i. Miner 

SlWenr 0.0 

aimirun ~.| 

steel 01 Chub. in...' 

Steep l.'ock irunu ;l-65 
Te.vio-> C nan. la ...; 481, 
Toronto Dom.Bw.i 22* 
'I'mn, Caiil*i|arLn 18 
Trans Mount t*|:l 8* 

IT-i/w 1153, 

Uuion Uhk j 

l nidsbcoMinebi 

W».ker Himui .... 

West lV»il Tran-' 

\\ mi on ('in ) ; 


























6 tb 

























1 17, 

1 Bid. 

f A*ed. 5 Traded. 
I New siodi. 

































Vol. •• Last 


Vol. 1 Last 























F. 1 301 
F. 133.301 














9 i 












Vol. 1 Last 














0.40 ! 













57 8 










- | F. 3 67.50 

— lF.26.90 








F. 145.50 

























F. 22.50 









16 i 


15 < 1.60 


























•p. 106.90 



7 IF. 118.40 







F.120 1 




10 1.60 



1 10.40 

i 4.50 


3 1 

ri; - 





- |3507, 



8 LB 





If ! 
















13 % 
121 % 

A.BJV. Bank 131% 

Allied Irish Banks Ltd. 121 % 
American Express Bk. 12|% 

Amro Bank 12]% 

A P Bank Ltd 12{% 

Henry Ansbacher 124% 

Associates Cap. Corp.... 12]% 

Banco de Bilbao 12}% 

Bank of Credit & Grace. 12$ib 

Bank of Cyprus 12} % 

Bank of N.S.W 12}% 

Banque Beige Ltd. ... 12]% 
Banque du Rhone et de 
la Tamise SJV. 

Barclays Bank ... 

Barnett Christie -Ltd.... 13t% 

Bremar Holdings Ltd. 13i% 
Brit- Bank of Mid. East 12}% 

(Brown Shipley 12J% 

Canada Perm t Trust... 12]% 

Caj-zer Ltd. 12}% 

Cedar Holdings 12i% 

I Charterhouse Japbet... 121% 
Choulartons 124% 

C. E. Coates I2i% 

Consolidated Credits... 12! % 

Co-operative Bank ......*12i% 

Corinthian Securities 121% 

Credit Lyonnais 

Duncan Lawrie 12J% 

The Cyprus Popular Bk. 124% 

IHambros Bank 12}% 

l Hill Samuel 512}% 

C. Hoare & Co tl2}% 

Julian S. Hodge 13]% 

Hongkong & Shanghai 12}% 
Industrial Bk. of Scot 12)% 

Keyser Ullmann 121% 

Knowsley & Co. Ltd.... 144% 

Lloyds Bank 12$% 

London - Mercantile ... 12 }% 
Edward Manson Sc Co. 13}% 

Midland Bank 12} % 

I Samuel Montagu 12*% 

I Morgan Grenfell 12}% 

National Westminster 12}% 
Norwich General Trust 12*% 

P. S. Refson & Co 12}% 

Rossminster J2}% 

Royal Bk. Canada Trust 12}% 
Schlesinger Limited ... 12}% 

E. S. Schwab l3}% 

Security Trust Co. Ltd. 13}% 

Shenley Trust 14 % 

Standard Chartered ... 12}% 

Trade Dev. Bank 12i% 

Trustee Savings Bank 12}% 
Twentieth Century Bk. 13}% 
United Bank of Kuwait 12}% 
Whiteaway Laidlaw ... 12 % 
-Williams 3c Glyn's ... 12}% 
Yorkshire Bank 12}% 

Eagil Trust 
English Transcont. 

First Nat. Fin. Corp. 

First Nat. Secs. Ltd. 

I Antony Gibbs 

Greyhound Guaranty... 12}% 

Grindlays Bank 12}% 

i Guinness Mahon 12}% 

14 % 
14 % 

[Members of the Accenting Bouses 
- Committee. 

7-da 7 deposits 10'.;. 1 -month deposits 


7-day deposits on sums of 110.0W 
ud under 1U% up to £23,000 101% 
Mid over £26,000 lo:*.. 

Call deposits over n.000 UT,. 

S Demand deposits 10%. 

Central Glass and Nissan Nohrw. 

TDK Electronics lost Y4Q to 
Y1J300, Matsushita Electric Y9 to 
Y706, Casio Y13 to Y8535 and 
Komatsu Y6 to Y3S6. 


Price I 4-or 1 

1 Div 4 

Itor. 10 

Lnu. - | 



Weaker across the board. 

Plateau after all because the rig 
was not Available. 

Oil issues - were mainly: 
depressed, with Woodside reced- 
ing 4 cents to 65 cents following 
weekend speculation that .it 
might have to approach share- 
holders for more cash. Beach 

depressed by the OPEC oil price Petroleum lost 5 • cents to 59 

rise uclicuuu, - 

Of the dollar and the breakdown 
of talks between the German 
metal trade union and steel 
employers. The Commerzbank 
index closed 8.6 lower at 812.6. 

Among Motors. Volkswagen 
declined DM 4.60 and Daimler 
Benz DM 3.50. while Electricals 
had Siemens down DM 3.60. 


On the currency fears, .how^ 
ever, some traders took up hedges 
positions in Gold Mines, includ 
mg the relisted Poseidon, which 
closed 7 cents higher at SO. cents; ' 1 
compared with its returning 
opening price last week of 65 
cents. Gold leader Central 

Deutsche Bank receded DM 4 and Norseman moved ahead 40 cents 
Dresdner Bank DM 3.10. while t o A812.50. 
else where , MAN lost DM 5.50 Coals -firmed on the oil : pricfr 
and i iHb DM 4. news on thoughts that this edaid-. 

Public Authority Bands i ea d to a stronger demand tor 
registered fresh falls extending steaming coal in the future, with 
to 50 pfennigs. The Regulating gains of 5 cents being recorded 

Authorities bought a nominal 
DM 10.4m of paper, compared 
with DM 4.3m purchases on 
Friday. Mark Foreign. Loans, 
however, were steady. 


Widespread losses occurred in 
fairly active trading, investor 
confidence having been sapped 
by the size of the OPEC oil price 

by Thiess, Utah and Howard 

Diamond exploration 'issues 
lost ground following . an 
announcement by Sibeka, 
Belgian partner in the Ashton 
diamond venture, that it has sold 
its 7 per cent interest CRA 
retreated 10 cents to AS3.45 and 
Ashton Mining 9 cents to $8 

NOTES: Overseas prices shown below 
exclude $ premium. Belgian dividends 
arc niter wtihholdins tax. 

4 DM SO deuotn. unless otherwise stated, 
yields based on net dividends plus ux_ 
ip Pta 500 detrain, unless otherwise staled. 
A DKr 100 dentuu. antes, otherwise staled. 
<t> SwFr 200 detrain- and Bearer shares 
unless otherwise staled. ? Y30 denora. 
unless olherwise stated. 3 Price at lime 
of suspension, a Florins. t> Schillings, 
c Cents, d Dividend alter pending lights 

and/or scrip issue, c Per share. 1 Francs, 
p Gross div. h Assumed dividend after 
scrip and/or rights issue, fc After Ideal, 
taxes, m rax free, n Francs: including 
Unilac dtv. p Nora, q Share split, t DlV. 
and yield exclude special payment, t Indi- 
cated dir. n Unofficial trading. t> Minority 
holders only, n Merger pending. * Asked, 
t Bid. § Traded, t SeUer. t Awnnied. 
xr Ex rtsbU. xd Ex dividend, xc Ex 
scrip issue, xa Ex alL a Interim since 


NEW YORK-" ,iB,E! 



306 JB 

Deo. j Dee- 



mm 36.40! 

86.2BJ BB.B1 


209 jm; an.wj 

w.itfnoiLK iobisbI 


is ' 


U - 



8 - 

















f 26/2) 





270 JB 







- of Index changed from Aog. 24 ’ 

4k Day's high B15.7B jow 601.80 

- . , r Ind- dlv. yield % 


■ • p*i } ( 

' 5 JB7 

--•5 Jtt ■■■■■:. 

1-VOJB3;--.. t 




Ihd. diy. yield % . 

M.F/B Kstto 

lion^ Gov. Bond yield 



3 . 84 

SJJ5 •: 



ra _ ja 


’low j 



106 J8 

' 9&-6S j 

(P/3j k; 



AMr ' 




r Ago (sflpn«0 




wrv s t.t. comcog 

Mam and FWK 

■ Dec. 

: _l_le 


Dec. I 
.14 ] 





( 1878- ' 



7 vHZI 




<U/8) 1 



' bsoas Traded— ...I 

CnotmiiKed — 

' Row HjglBC..—-..J 

- Nmd Loured 


CoDibined 1 






u ^ 

: - > > - Ifl 



;• Low 










162.96 (15/7) 
170.62 t»/l) 

TOHONTO t-tamporiW! 




; isaij 

■ % V5S2.iil2 lQ) 

938 J! («/1) 


bold .. _ . t . ; 

~ lntltuFlrni. -v . 








»i66l0 (20/4). 

IS I vioiin 

.9 L26 

Anattaliart) 637 J® ] 539JZ 
Belgium 'll { 87.76 ( .97^9 
jemnaikt**! 9iX62 
XZKUCB ttl)] 76^ : 
jGermaaiytuV 312.6 
TT ftlhrod (ii)j 7EJ0 
Wang Knngj 496^4 


tm 9, 












■Italy (ID 6S.72[ 

Japan m 446 J8 ] 44&S7 ! W 
***** , ■ - ! iB#r 

; Singapore/*) 349.72.) 3HLD9 ! 414 





. 769 A 
















261 J6 


bank- Dec: 1338: n Amsterdam - Indiutrial 
1979/ U-Bang. Sens Bank 31/7/64. ff|| Bancs 
. . Connlttrcialo Tf nHirnn 1572. ' a Tokyo 
76,0' Ndw' SB- AOm. l»8tralts Times' 1366. 
:(4/4) t? adsed-i“(t Madrid 6E 30/T&T7. aStodc- 
383.4. bolm Xndnsuial 1/1/53. /Swiss Bank 
(13/4). ' (Corporation- . u Unavailable. ... ■ - 


Indices and base Antes (aH.base vi&Rs 
-1B0 except PDfSK .AH. ‘ CpnmlMi— 50 
Standards and Poors — 19 and ^Toronto 
360—1,000- the last named: baaed 4JC.1S7FV. 

'f Excluding bonds.: J 400 -totiastrials 
5 400 industrials. 4fl UtiIid«s/'40 PinaDce - Sears Rtw buck; 197.800 
and 2o Transport. ,fl SydneyjAll Ordinary. Pan Am Air _ 175,800 

J Belgian SG 31/12i"63. •• Copfinbagoi SK.. Exxon ‘ : 163,100 

1/1/73 It Paris Boons 39KL tt Cmftrocrx- Columbia -Pic. 16Z900, 

' .Stocks 

-Simplicity ...... 4-75.900, 

ArcherrDanials. 320.200 

Guff -OH 277.600-"’- ' 24* 

NW Aiirmes.- 253^00 28 

Olih 246,100 

Gor. Motors... 200,000 

Closing on 
price day 
UP* i+1«* 





6 V 




















Utfiirn-Ue Bank... 
D refiner Bank....: 
DyL'k'.-rlHrff Znut. 

507 j-fl 
884 | t 0.5 
132.9;- l.e 
156.5|— 2 
306 ; — 6 
317 -7 
158 1-2 
822.5 -3.6 

320.5— 3.5 
172 i — 4 

302.5— 4 

843.5— 3.1 






















2b .66 1 















9.38 2.8 
16.261 3.9 

Ha^oc Lloyd 





K'bU uihI imL- ". 


Klm-incr D VU00..1 


Kru|ip IlllluO 


Lowenlirvui L'MIOU,1,5BO 

Lufthansa 1 95 


M minis rural ii 


Miinelieui-r Buck. 


Preumi: Uni. l>Kl| 

ScUerln^ I 

dicmeUF- . ... 

Suit Ziu-bvr .. 

Thjwu A.G. 



VifreiiiNkWf»,t llkj 







— 1-5 





221 1—5.5 
675al +15 
158 5.5 

138 1+1 
179.9,^ — 0.6 


245 j— 2 


178 —a 
129 -1.1 
295 '-1 
2S4.5— 4.6 

18. 7t 



















Dec. 18 



+ “ r 





Arelti Gistt— 



















— B 












Hoads Motors-^. 


+ 1 




■ 41 

C. Hob 


+ 1 

















Kanrat Elect. Pw. 







— 6 


















18. 1U 4.8 




U«.. 15 



+ or |Dlv. 


Atm (KI.&O1 ... 

AlcrniUnMFl.lOO] 1 


AnirrJuDk iFI^O) 


Bukii West in iFSOlj 

Buhnn' Tot tertrfe.' 

KIm-i ii-r 1 FI .20 1 ...I 


Kiin-'iiniTi.*FI. 10 1 1 

(liiulBrocadeH FI 

Heineken (Fl.25i.l 
Hmitfnveiu (FIJCM 
K.L..11. iFI.IOOi... 

Inu Muller (PI JOll 

Kbi . Serf lni-lFl. lOd 


Xed Mid BkiPI.TOil 


OKE.U tFI.lOi 

Vm OmraerCn.... 

Pak lined (FI 

Philip™ (FI.)Oi 

lijmSub Vert FI.100| 

Rulwen (FL60) 



Iti.yalUutchF PLUj 

Cnilf’er (PIJEO). 

Vlkinp Ri» 

Went. L'ti.Uyf-A 

109.0 »1B 

26.8-1.2 - 
367.5 —4 5 A25H 6.4 

89 i— 0.2 



115.0- 1.5 

274.0- 2.5 
138 1—I.8 


33.0,— 0.4 

A 17+ 
















112.5- 10.3) 

106.9)- 1-4 
56.2; — 1.6 

lsaa— 3.2 
166 Hl-2 
27.4,+ 0.2 
139 1—5 
43.4 +0.9 
23.6c) — 0.6 
62 ;-i 

162.5- 1 
125 ^-1 
122.U + 0.6 

118.5- 2.1 

239.0— 0.5 

127.0- 2^ 

412.0 1 



19. Si 



















+ or 



Dtr IB 








DsuHbe ltHtik 




Ease Asiatic Co... 





— H 





For Paplr 







286*; + * 








Nuvu Imiuslri JB. 





















Dec. 18 


+ 01 










hem [irnt 

Sti-vr Daimler 

Veil Mepiei-it., .. 






k 10 



KuUcta • 295 

K>oto-Cenunie_. 3,600 

3uUu»biU I n«i 1 706 

Mumbled! Bank J 281 
MitMit'Uihi Heavy] 122 
Mitsubishi Corp..] 425 

Mitsui A Co. 289 

Mltsukcnbl I 588 

Nippon UeoKo....: 1,580 
Nippon 3b id pan . 800 

Nimid Motors | 655 

Pioneei L36Q 

Sanyo Eletrlc M ..[ 259 
Sekldut P npnih — 938 

NhMIilii. 1.150 

Sony _.J 1.500 

TaiBboJliuirte ....I 243 
Takerta Chemical. 530 

TDK 1 1,800 

Teijin _..... 

Tokji'Mnnne I 

'Tokyo hlirccPim'r| 

Tokyo Sanyo ... 


'JLYtthihH Uirp 

Tnynt* Motor | 








— 2 
















+ 5 



+ 1 





























+ 5 







— 1 
















1— 1 



Dee. 18 

AnxL » 

ACMLL (25 centf)— . 

Aerow Aurtralfe, 

AJLATLL 8L-—' ExtflorariooiL. 

Ampul Pmoleitm,...^ 

Amor. M i nera l^ - 

Assoc. Pulp' Pa^er $L. 
Assoc. Con. lndostries.....l| 

AusL Foundatlijn Invest... 


Aust. Oil A Gas>..— 
Bamboo Creek Sold. vi 

Btde Metal Ind 4 

Bougainville Copper .... 

Brambles fnd rattles.... — 

Broken Hill Proprietary.... 

BH South - - 

Carlton United Brewery ... 

CSK (8D.A : — ; — ~ 

Coukburn Cement ... — .... 

Coles (G J.).— — 

Coos. GokHkMa AuK. ! 

Couielaer ($1)'. I 



Dnnlnri BuMrar (GO (rant) — 

Blder-Smlth ; 

Bodes tour Qeooottea. — 

HZ. Industiiea . — ..h...«| 

(ion. Property Trust — 



Source NfXko Securities. Tokyo 


Dec. 13 



+ or 




' — 



Artml - 






J-'nbrii/iie Nsu.._ 
G.B. lnonUm 

tievnen.— ......... 

tiULtHrux L) 




La Koyaie Beige. 

rim fioiilins- 

Pet rob ns. 

9L>c.iicn. usiiqih 
fe/iin, betse.. 

Siilns. _.... 


Traction d-eel 


Hull in. (L/lUi.. ... 





! 2,675 

+ 5 



1 996 







+ 5 




+ 20 
















+ 15 1 




— 75 



: 1.845 





+ 60 




+ 20 






| — 35 







— 20 








At. ID 




170 1 











— , 



Dec. IB 



+ or 









HBU * A ‘ 













Do. Hejt 





Credit cuimra.—.. 













Hoffman Ft Cert. 





Do. (jmsii) 





Inlerfood U. 





Jetmoti (Fr.lOOi... 





Lr™ If-lUillijjWH 





Do. Keg 





a ' i 1 TETli '7 , "* .'1 1 




• 1.4 












mmm ti (.l* 









dwraiair (PrJtiO). 





awtw bnkd-T.IOO) 







+ 10 


W-Jy-'M 1 

Union Hank 








Per. 18 


Bnntogl - 

Flat — 

Do, priv — ] 




iledtotanro .] 

Montedison -...-J 
Ollretti rriv .....J 

Pirelli A Co...— J 

Pirelli spo. 

S&ia Viacom.—.- 









305 -19 
'34.400 — 4fiQ| 




— 34-Si 

i,m 3.5 

165.25 -2L26] - 
1.149 —1 



1W. 5.5 



130 7.0 


KT Austrafie. — | 

Inter Copp er^- — -j 

JennfngH Industries-...; — 
Junes (DevlfiQ.-. ...... 

Letuuxd Oil 

Mete* Ksplgnetlon 

Mctramac Mineral* . 

3UM Holdings. — .. — .... 
Myers Emporium...- 


Nicholas Internatkinal— . 
North Broken H /Bugs (60c)] 


Oil Search.—- 

Otter Kxplurmion .—.k.; 
Pioneer Concrete— 

Itcektkt A Cotnuui 

H. C. Sleigh — : ........ 

Southland Minin g 

Spsreus Exploration ... — . 

Ti4tG(S}^,- — ... — .. 

Waltons — ..... 

WestexO atluingr tfiO owafcB}.| 
Wualwortba — — .— . 

tl.30 ' 








L07 i+fl-02 

. ;68* 

: J1J16 

12 . 18 
-tO -SB 

. fO.79 

$0J88 ' 
• ■ Tl-68 
' $0 j3 

ta .60 

tO. 67 


$ 0^0 




















— 0JJ2 












Dec. 18 

Rente t)..uiM i.r — I 

A/rujue UT*l't'* 381 L-10 




Air Liquide.-'J 




. Gra+ai- ... 



U.l.T. Aieeui.'-M 

Uie Bancaire 

UiuU file(Uiee v ..J 
Credit ComPr'eej 
C re aunt Lofre^— 

Fr. Petrols — ... 

384 (— X 

rr. reurom—..... Miupt.i 

Gen. Ooradentmej 866.0 1 — 2.0 
I m et m l. 5U2— OJ? 





588.0-' — 5.5 
956 |—26 
479J3! — SL5{ 

60.1,— 1.8 
653 ' [—IB 
I3a9— -1.1 





40 i 1 





111.0 -4.9 
248.8 — 7^ 

4 746. -p-3- 

1.350 J-10 . 

Mataff'V- PtHWUxJ 500 j — 5 

1,184 >,—21 


Meet Hennoaiey. J - 540 . — 14 
Jiouitnfcx 1 1 " 



Pernod Kleiud 

Peugem-Urvun^ 479.7—6.8 

PootaJai^Lj^, 211 5 

Uitdto Teduilquis. " 425 
Uedoutc... —.■■■■■■ 650 — 10 

Ebone PpultftoM.< 
bt_ Gdba 
Wla tUx8ljrn<M.-_ 


1455 -2.5 
1.830 60 

291 -7 

„ . . , 799 J— 18 

Thoniootj BrsmltJ .236 1—6 


133 2 

308 '-fl 




fx kL 













[37 J-' 


































Am Ail i fcLr-4U>_l_J 
Alfa Lav»i(KrJUu 
Atus CapOWKrl 
bofate. M .. — 

b'riaugd.*B I (Kitp{ 
Bseeite "Uf'i 


Mmudialfatnlien. ., 
Uanuiou _.J— 

Mn Oob Dometa. 

tiaudvik 'B* Hi*. 

d.K-P. -B’ Krs._ 

dkand hoskllda.J 






140 Ul 

.bo _r 


>175 }— 3 



182 Ul 



• „ ,. . f + or I Div. ¥14. 

Dec- 18 1 Kronor 1 — | Kt ; 

+ 1.5 



+ 1- 

4&5: uj 

376 t-l 




, 10 - 






















Bergen Batek 
Borreasazd ... 

— I . ».w 

Kred1Aaas t ffi=rr.fT15.-Of40:a ; 

-prvw-t + 

JCrooer; — {. * t * 

106 T &az8| 
- 78.0) + 1J5 
120 1:.. — 















- Dec. la- 

Boacodb Bndt- .' 
Juw ItanPKT....; 


Bpjsa'Amer. _O.P.[ 

PatrobijH PP._„ 

'Sosdra.Ctdz OP.... 

Vale Bio DocePPl 


-Crux r — •- 










0.1^, 14.65 

V -o* ITM.lWU.»‘'|n.W 

■1.78 04)*)- 16(9.30 



+ an 1 1^b. is 

+0.10 J.2514^6 
— o^akj.ib'iBBa 

. TunurwaJ" Cr. VoJuma 53.3m. 

SoUricn: Rto do Janeiro SE. 

. ' 5.80 



Dac.'. r .'18' ' 

An^lo "• Amaricau - ,Cpn 
Charter - Consolidated 
East Odalbiitern' 

Elaburg 5 . 

Hairnpny.v 1 ,..*-;.:.^..^.. 
Kinross ‘ - 

'Rimttnburg Ptadnum - 2.00 
St. Helena fI4.50 

SouthvaBt ' ,8^0 

Gold ' FleWii Si^ tZ6.10 

Union Corporadoo - 6^5 

De- Beenr Deferred ■ 8J00 

Blyvooruitzicht 6.50 

East Rand Ptyi'.^ — 

Free State Gadoid ... 

President Brand 

President Stayn 

Welltpm . 

West Driefoimin 

Rand + or— 
6.50 ‘ 40.05 








■ 40.® 


Western Deep r..„. 


■ s.75 • 







+0.50 - 










. : 4.90 

t- AECJ ..LL...=..._ 

Anglo-Amer, Indusfiiel 
Bartow; Rahd 
CNA Invasunentt: V.L.. 

Currie. Finance 

Edgars Cons, lnv, - 

V Edgsrs Stores 

EverReedy SA 

Fad.-' Volksbelegginge 
.Grestormans Stores 



McCarthy . Rod way. 

NedBank . , 

6jC* Bitan 

.Premier Mflllag' 

■ Pretoria Cement' 

Protea -Rbldfafls 
; Rend.. Mimw Propa.. ^. 

Rembrftndt Grtelp '• r ' 3.70 
Seetn \ ■* — ir'Jl i0.3l 

Sene Holdings'' .! ' — 

SAPPr ' ^ ... 

.C; G. . Smith- 'Sugar . ... 

SA . BrevTOries .; 

Tiger" Oate^ Nfltf. Mlg. 


' Securities Rand UJ5J$0.66^ 
' (Discount of 42.4 %> 


r 0.05 




: 1.35 
, 1.78 





. .7.K. 

6.80 .>0.05 
3.50 '40.03 

— OJ)2 
. 0.03 

; T.83 

' 1.23 



- 0.02 





> -Per cSnt 4or-^ 




AsTanrf • ■ t21 

Banco Bilbao- ■ w» 

fr- Mandco • (1,000) 243 

Banco Central 

.Banco Exterior 

Bjrco General .....-..:. 

Banco Gwrjeda (l.OOO) 

Banco Hi8pUno-....-.^,„ •. 

Bi Ind. Cer. n.DOO)..-: 

-8. ind. Meditcrraneo 
Banop Madrid'^r..^:j. : 

Banco; Pepuiir 

,B. Santander (350) 

Benco- Urn 'fljo- ( 1 ^ 00 ) 

Banco Vlxosya U..., 

.Banco Zsregozano 

Bank union : 

Us , Andeluda „v 

Bebeoekr W/lcmt j - 


Otegsdos ' 

tnnwbenif .... ■;.ir-:^ J - ' 

E^.I.-Aragonesu ...... 

EapanoJa . Zinc . 

§*pl. Rio Tinier -. 

270 . 
148 ' 


- 1 
- 2 


Fwwea -{1.000) 

, ,<*** s 



M Mfc Til 

r-W.BlfW.4Ul K£*|HI 

2.10 U-O.e»0j«ldL47 . 

■ t._ £.ra3 


... *3 Gwii 


- : 






?/- " frj 


Gal. Rruciadas - 

-Hidrolo ■■.. 

lta*du*ro r .^TSBJ^ 'r 1 .&7S 





Companies zk ; Harlots 

VUlflMUUlllEa, RAU IVlAi£IUnL3 aflU /UiRi^ULlUIVE 

Withdraw fish port Ban on cotton exports angers merchants 


JC UNION olE^alj Whose' mem- 
bers’ johs arft. threaten ed at -be 
Lancashire port at Fleetwood 
has ashed efr" J nftn - sttHTi l fte 
Agriculture ; and Fisheries 
Minister, ■ to ; withdraw the 
£180,000 grant offered to trawler 
. owners at theJpdrt to help them 
to meet escalating: dock charges. 
■: The' r Fleetwood Vessels 
Owners’ Association, announced 
tin Friday that itwas gofngdhto 
liquidation is •' spite ; of the 
, promite. of . . state;- ; »&.*, . 
Association, which, handl es the 
lasdiagrasd suvloeting of fish at 
the .port, had. asked -ftr direct 
aid toicover losses this winter, 
-esttaurted:at £190,000. . 

: The-MSxdstty responded with 
a: promise of a £12x& grant to 
boat owners using- the ports of 
Fleetwood, Hull and Grimsby to 
cover the - increased Charges: 
Fleetwood's Share >. of £180,000 
would go to owners who are 
also ' shareholders in the 
Association, so it should .have 
been possible to arrange for 
the money to be used to keep 
the dockside services, going. 
Ministry officials said. 

' Mr. Alf Davies, Blackpool and 
Fleetwood district secretary of 

the Transport and General 
Workers’ Union* which repre- 
sents 138 dockside workers at 
the port, yesterday-: described 
the owners! decision -to wind up 
the association as “ diabolical.” 
' ' “They lave'’ pocketed the 
money and - ran away,” he 
declared. I - have . asked the 
Minister to withdraw his offer." 

■ Jttf.v .Davies charged the 
owners with trying to evade 
their ' . responsibilities. " They 
are holding a gun in the com- 
munity^ head.” he said. 

; Union attempts to persuade 
the -vessel owners to keep the 
Association in operation have 
now been abandoned- but the 
doekexs are not giving up their 
jobs without a fight.. 

“My members are "pledged to 
carry os . unloading fish," Mr. 
Davies stated. “Over 2.500 
people in the town of Fleetwood 
depend on the fishing industry, 
directly cur indirectly, for their 
livelihood.” - . 

‘ Some merchants and- trans- 
porters have expressed their 
willingness to join in a scheme 
to take over the Association’s 
functions bat up formal discus- 
sions have yet beto held. 


THE PAKISTAN Government’s 
ban on exports of raw cotton ■ 
has enraged European mer- 
chants who have telexed a ' 
fierce rebuke to the Minister , 
or Commerce and the chairman ; 
of the Pakistan Cotton Export : 

“Perhaps you have not been ; 
advised of the calamitous con- i 
sequences and the fearsome 
legal repercussions that this 
announcement (of the ban) < 

creates," wrote Mr. A. K. J. 
McBride, chairman of the Asso- 
ciation of Cotton Merchants in 

“We earnestly request you to 
reconsider your decision and to 
make an urgent announcement 
that existing contractual 
obligations will be properly 
performed and excluded from 
the export embargo.” 

The decision to ban exports 
was taken last week. It aimed to 
ensure that Pakistan's own 

mills had adequate supplies at 
reasonable prices. 

Mr Mian Zahld Safraz, Com- 
merce Minister, announced at 
the same time that this 
season's cotton crop would yield 
only 2.8m bales compared with 
original estimates of 3.8m. 

Prices on the local market 
have gone up 25 per cent 
recently and the export embargo 
was planned to keep them in 

World wheat crop likely 
to top record 434m tons 

Green franc change sought 

- BRU SSELS — France and 
Italy have begun pressing for 
rises in their national farm 
prices In anticipation of EEC 
Commission proposals for a 
freeze on Community farm sup- 
port prices for 1979/80. 

: At this week’s- farm council 
meeting ; here,- France is. 
believed to be seeking approval 
for early introduction of a 3.6 
per cent devaluation ot, its 
“green franc/’ ■ the artificial 
exchange rate used to convert 
EEC common. - prices into 
national currency. It is effective 
next Monday on all. farm prod*, 
ducts except cereals, on which 
the new rate would come into' 
effect at the start of the market- 
ing year in August. 

The devaluation would bring 
a cut of four percentage points 
in the French MCA*, currently 
10.6 per cent- 

The cut was approved at last 
year’s farm - price’ review for 
introduction at The start of the 
1679. commodity - marketing 

. .Last week, Italy requested a . 

“green lira’’ devaluation of 5 
per cent effective immediately 
on livestock products, and on 
other products at the start of 
their respective.' marketing 
years. . 

The most important issue on 
the agenda for this week’s 
council — the Introduction of the 
new European Currency Unit 
(ECU) for the Common Agri- 
cultural Policy— is not expected 
to get under way until today. 
Economic and finance ministers 
touched briefly off the issue 
yesterday, before referring it to 
Agriculture Ministers.- 
- The French are pressing bard 
for a firm committment to 
phasing out MCAs once the 
new European Monetary- System 
EMS). is fully in operation, and 
want a timetable agreed as soon 
as possible. _ They, feel .the 
present allocation of MCAs is 
costly and in any case; does 
more for German tensers than 
French ones. 

Denmark, mean while, - . has 
strong reservations about the 
use of the ECU in agriculture. 


TO A op AfTT'TATC ■ . ■ apermri lower Thaif expected. In lata 

" DAOn jnElAlA tradinq the price fall away to clean on 

COPPER — Lower oh the London’ Metnf * he . K® rb « ^82. 
~ ’ ^Exchange Out trading was. in a narrow *«»v»iy. Tumov* 
range with the movomant of currenffiee • Amalgamated M 
..the main factor, influencing t he m artoi. that in tho--moj 
; . forward moral started at £783 and traded at E768J5, ( 

opened lower theq' expected. In leta 
trading the price fall away to close on 
the ICorb at £782 after a routine day's 
activity. Turnover 20.975 tonne*. - . 5 

- Amalgamated Metal Trading reported 
that iji tho --morning cash wirebera 
traded at £76A5, 89. 68.5. throe months 


WORLD WHEAT production 
this season is expected to top 
4%L3m tons, surpassing the 
previous record crop of <1976 
by almost 17m tons and exceed- 
ing by l-4.3m tons the Interna- 
tional Wheat Council’s earlier 
estimate which was issued on 
October 2L 

In it sassessment of the pros 
pects for the coming year the 
council suggests end-of-year 
stocks in the five main export- 
ing countries will be 58.2m tons 
compared with 54ra tons at the 
end of the 1977-78 campaign. 

Total world stocks, excluding 
China and the USSR should be 
83m tons compared with 81m. 

Expected world trade in 
wheat is unchanged at 69.5ra 
tons- But while Pakistan and 
Vietnam will be buying more 
than was forecast earlier, im- 
port' requirements in the USSR, 
Iran and Bangladesh are 
expected to fall. 

The council puts Australian 
production at 14.3m tons, up 
from its last assessment of 
11.5 m tons and even higher 
than the 13.8m-ton forecast put 
out by the Australian Bureau of 
Agricultural Economics. 

The European Community's 
crop, which includes durum 
wheat is estimated at 47.2m 
tons compared with the earlier 
figure of 46.8m Official estimate 
of the Argentine crop is 6.9m 
compared with 5.2m tons last 

World production of coarse 
grains is also expected to 
reach a record. Output of these 
cereals, which are used mainly 
as animal feed and for process- 
ing, is forecast at 785m tons 
compared with the October 
figure of 720m and output last 
year of 693m tons. , 


Morning: Standard three months 
£8.980. 70. 65, 80. ' 70. 75. Kirfas: 
Standard throe months £8.970. BO. 65. 
Aft ■ moon: Standard three months 

f s.rn. (-4- or) n.m. i+ ■* 
TIN Official - Cwrfiuaal _ 

Changes in earlier forecasts 
Include an extra 2m tons on 
the U.S. coarse grains crop, 5m 
on the Soviet Union’s and a 
possible fall below last year's 
record output in Argentina if 
too many farmers switch to soya 
bean production. 

World trade in coarse grains 
is estimated at 85.9m tons. The 
expected increase in imports by 
Japan, Taiwan, China, Brazil 
and East Europe should more 
than offset an expected decline 
in imports into West Europe 
and the USSR. 

World production of soya- 
beans forecast at about 84m 
tons, lm more than expected 

in October, and 7m tons more 
than a year ago. In Brazil, 
where some replanting was 
made necessary by heavy rains, 
outlook is reported to be 
favourable. Production is fore- 
cast at 13.5m tons against 9.1m 
tons in 1977-78. 

Reuter reports from Hong 
Kong that China's northernmost 
province, Heilungkiang, has 
produced a record grain harvest 
of more than 15m tons this year 
despite drought The New China 
News Agency said sowing of 
crops suitable for local climatic 
and other natural conditions 
contributed to the Increase in 

Christmas protest at 
whale oil refiners 

/.climbed during the morning To 085.5. £784.5. 84, 83.5. 84,' 84.5.' 84. Cathode* 
Trading tar Bra mat of the day wae . throe months £772. 72.5. 72. Kerbs: 

Trading tar ora mat of the day me 
- . just .underneath this . level, ; and them 
. /'LWU no -stimulus from Comax which 

' -pQPPlUfcj oSSai j*-?*- 

i- . £ . . 

Wfarebara , - . 

Cub .j 767.3-8.6 -Z .25' 767 &&B 

3 months. 7B8J54 ~3- ■ -7B4-6 
dsttl'nwjth. 7600- -3 .. 

Cathode* - } 

Cxafa. J 7 64-. 5 MS :i 703:5-4-8 

3 tooutiu. 7TO.-B J— 8 TfS-.'B 


• throe moraha E772. 72.5. 72. Kerbs: ; 
. WIrabsfs'-. three month £784. -84.5. . 
le » - Aftamoon: Wire bars cash £787.5, three- 
— months- *784. 83.5. 84. 84.5. Cathodas 
1 or thru months €722-5- Kerbs; Wlrabars 
T." thrfp nibatiis £784. 4.8. 4, 3.8. 3. 2AZ 
T~ . . TIN — Finished uslar. Following tire 
. ' gain in the East over the weekend end 
__ the rise In starling, Jorward - mow l 
etaitad et £8,920 but advanced- to 
*£0.960 after, the announcament of . a. 
— ’ . tall in warehouse stocks. Hedge self-. 
_ .- 'ing emerged to depress the price which 
B ' fall away through the afternoon on tack 
*■“' of Internet .before It studied on U-S. 
*■» covering to close on the Kerb at EB.830. 
zr Turnover 980 tonnes. . - - ' 

. High Grade £ :£ it I i- 

■ Caali 7065-70 I+S2.5 7010-30— 56 

; 3 months. 6970-76 .1+67.6 6925-40 -40 
flettJeni'i. 7070 +N — I ...... 

Standard - I 

; Gash. 7066-70I+GL5. 7010-80 —55 

3 months 6B 70-751+17.6 6923-40 -40 

• Seettam't. 7070 +60 — 

• -Strait*. £. tS1789 1+16 — 

■■ Rear Yortd — | 

• £6^65. 70. 65, 80, 50. 60. 50. Kerbs: 
- Standard thru months £8.935. 30, 25, 


LEAD — Study despite the disappoint- 
ment that warehouse stocks did not 

- decline more sharply. Jn light trading 
forward metal moved up from £401 to 

’.£402-6403' during the morning and 

touched £404 in the afternoon. The 
dime on the Kerb wbb £403.25. Turn- 
over 6.825 tonnes. 

• jn. i+ or| i>,ui. rf-~or 
lead Offldsl | — Unofficial — 

; ' . £ I £ j: 

Oaah- 429-30 +S.7S 426.6-7.S +7.5 

,3 month*. 402-.6 i+.6 402-.8 — S 
•Sett 'meat 430 +4 — 

U-d- b poc. — 1 ...... _^36.36_ 

- Morning: cash £428. 29. three months 
£402, 2.6. 3. 2.5. Kertw: threa months 
£402,5, 2. Afternoon: thru months 
-£401 .5, 2, 2.5. Kerbs: cash £427, three 
-months £403. 4. 3.S. 3. 

ZINC— Traded quWrty betwean £354 
■nd £357.5 throughout the day with the 
-market edging lower In the afternoon 
-tm lack of inter* at to touch £354. The 
Close on tits Kerb was £354.25 with the 
undertone remaining steady. Turnover 

5.450 tonnes. 

• _ . *rm. 1+ ur p.ui. Ih+HIT 

KfXC OOUtial | — UnuflUdal) — 

a r j“ 

Couh. 546-7 — 1 345-8 1-1.5 

3 mouth* 350.6-7 r- .75 363.6-6 '-.76 

JTineal.... 347 M - 

Prtoi.weM — | ...... a 5S.6-4£ J 

_ Morning: cash £346. three months 

: tCL Index Limited 01-351 8466: r i month Gold 213.85^15^5 

- 29 Xamont Boad, London 5W1O 0BS. 

'• 1. - Tax-free trading on commodity futures. 

: : 2. Tho commodity futures market for the smaller Investor. 


• : r . .NOUCE OF PURCHASE . . .:V 


/ US VtOflOOJOOO Guvantaed Rooting Rote Serial Notes 1982 ..'o 

NOTICE IS WftEflr GIVB4 to Nneeholdtra chat Dlftm. R**d l P**? 3 *** -' 
Garponuietr,. London. as:PurcteM Afmt. Arraeant to Condition 7 -(b) of cht ; ‘ 
‘Nam- Ins paitfase USMA20.D00 prindpal aaotmt of the s»Wee* Notts fw . 
account of 'th* Borrower during, tb* VB-mooth period. «ndta£ November 30. lv/8. 
Alter thru puidusn <ba pnadpal «no«ot of Now* romiktiog in circa ft con 
vru US$43,380,008: - 

■ In wxOKftnce with the Term* -and Cbndhiwu of' the' Note* * . 

redemption was. made on the babutc* owsamdlns on November 30. 1978. . 


8yt atfbenk, HA, London, 

‘‘ ■’ P^iag-Agenc. ‘ 

December 19, 1978. 


Liverpool, Britain’s biggest 
importer and only refiner of 
sperm wbale oil, yesterday 
received sackloads of protest 
“Christmas cards” calling for 
a halt to British imports of this 

On the eve of a special meet- 
ing in Tokyo of the Inter- 
national Whaling Commission, 
at which the fate of thousands 
of North Pacific sperm whaJes 
will be decided, members of the 
<Friends of the Earth conserva- 
tionist group delivered an esti- 
mated 15,000 cards to the 

contracts wore fixed up in various North 
end South American qualities with 
occasional support in Middle Eastern 


Cocoa futures were weak throughout 
the day due to liquidation causing 
further stop loss seillno, with prices 
consequently closing some fSO lower 
at the day’s lows, reports Gill and 
Duff us. 

: Yfflicrlsy'j74- ur” ”Buain»i~ 

COCOA | CI«m — | ilnoe 

July 1-4B.S 2085.0-11.0 

dept 2020. 0-25.0 -4o .0 2046 Jl- 20.0 

ftuc 10M. 0-2008 1-45.0 £028.0-1828 

kUxr-h •18M.Q-CP.B 1 — 44.0 2008.5-1982 

Sales: 2.902 (2.2&1J tats of 10 

Intemetionel Cocoa Organisation 
fVJ.S. cents per pound). Daily price for 
Doc. 16: 179.10 (179.20). Indicator 
price: Dec. 18: 15-day average 182.65 
(183.24): 22-day, avsrago 1B3.74 


group's head office in Liverpool. 
Last year Britain imported 14 
per cent of world consumption. 

Mr. A. N. Turpin, the com- 
pany secretary who received 
the delegation, said later that 
a large proportion of the cards 
appeared to come from small 
children. “Others were quite 
obscene," he added. 

At this week's Tokyo meet- 
ing IWC members will discuss 
North Pacific sperm whale 
quotas which were held over 
from the June annual meeting 
in London. 

London Jen. £83.50, Feb. £94.50, March 
£95.75. April-Mey-June £100.75. 
Deneturabta quality wheat, delivered 
East Anglia. Jan. £91.00. Feb. £92.50. 
Match £83.50. Aprll-May-Juno £97.00. 
Barley, delivered East Anglia. Jan. 
{ Feb. £85.00. March £86.50. 
April-May-Juna £88.75. 

HGCA — Average ex farm spot price* 
for week ending December 14: Other 
Milling Wheet— S.E. 89.50. East 89.80. 
E. Midlands 91.10; W. Midlands 89.40. 
N.W. 90 30. Scotland 94.20, U.K. 
90.80. Feed Barley— S.E. 80.50. S.W. 
80.30. East 80.80. E. Midlands 80.50, 
W. Midlands 78^. N.E. 79.00. N.W. 
79.20, Scotland 79.90. U.K. 79.90. 
U.K. forward prices for delivery 
during: Fob. M. Wheat (Bread) -96.30. 
(Other) 83.90, Feed Wheat K 90 -SO. 
Matting Barley 88.90. Feed Barley 
82.90- March. M. Wheet (Bread) 88.20. 
M. Wheat (Other) 95.10, Feed Wheat 
K 91.40. Malting Barley 90.80, Feed 
Barley 8420. 

hgca — L ocation ex farm spot prices. 
Feed Wheat— Cam br Ido* 86.50. Feed 
Barley: Central Scotland 81.40, Cam- 
bridge 78.90. 

The UK monetary coefficient for the 
weak beginning December 25 (based 
on HGCA calculations) is expected to 
remain unchanged. 



ROBUST A futures oponad C10-E15 
lower and during a quiet but steady 
morning session volume was small as 
prices fluctuated in a narrow range. 
The aftamoon was featureless and the 
market remained bouyent throughout 
to cloea E5-C12 down on Friday, 
reported D rex el Burnham Lambert. 

lotridij-'i . i 

COFFEE L'1u*e + or Biraoeu 

— I Done 

Ju i«r inane j 

EASIER opening on the. London 
physical market. Fair interest through- 
out the day, closing uncertain. Lewis 
and Peat reported the Mileyeian go- 
down price was 234 (235) cents a kilo 
(buyer. January). 

So. 1 Yestentaj'i 
B_S.b. Clnee 


Morning: cash £346. three months 

,053. 68. 66.5. 57. 57.5, 57. 56.5. Kerbs: 
cash £347.5. threa months £357.5. 
-Aftamoon: three , months 056.5, 66. 
Kerbs: three months £355, 54.5, 64. 

-• ' ALUMINIUM — Easier In routine 
"trading. After starting at £620 forward 
' metal climbed to £823 end then fell to 
0521 on the late Kerb with the move- 
ment of sterling the main influence. 
-Turnover 1,550 tonnes. 

Jammy 1446-1447!— 06.0 j 1460-1 4 54 

3lurcU. 1 28 9 1 290 09.0 1300-1283 

M*V 1230.123U-07.6 1235-1224 

July 1193 1195;— 10.0. 119B-118B 

eftpr+murr - 1161-11631— 08.0. 1165-1156 
NbvetMher... 1133-1135,— 10.0 1135-1165 
January,..;.- 1110 - 1 111:— 12.0 1112-111 1 

Seles: 1,371 (5,659) lots of 5 tonnes. 

ICO Indicator prices for Dec. IS 
(US. cents per pound): Colombian 
Mild Arabicas 171.50 (eeme): un- 
washed Arabicas 143.00 (some); other 
Mild Arabicas 132.33 (128.67); 

ftobustae iCA 1976 131.00 (same): 
Robuetas ICA 1968 132.00 (131.00). 
Dally average 131.67 (13034) . 

Ju [ 

Fell ! 

Jen- liar 
t «ct- Dev 
At*- Joel 

84 36-86.001 
67.5837 JB 
K. 88-63.70 
7S.en.7s mi 



70.26-70 -JC 
72.60-72. 80 













•’ 1 







' £ 

3 monUis. 


— -to 




Seles: 5 (83) lots of 5 tonnes. 285 
12171 lots of 16 tonnes. 

Physical closing prices (buyers) 
were: Spot 66J5p (57.5): Jan. 57.9p 
(58.5); Feb. 58.75p (S8.2S). 


iVeMsiritayl -4- or j 

Close - Dime 

our analysis of the short 
and medium term prospects . 
of this currency is now available 

/ for your free copy, ring or write to : — 

" ' GmUCommodify Services limited. 

Part 'of the Coniinenitifi Grain Company Group 
Telephone: 01-4SS 3232 


Daily High/Low/Clot* Charts whh 

S-. 10- and 2May Moving AvMBga* NAME — — : • 

updkradto Friday'ec/ose". ADDRESS 

Reiwe sand me details O 

■ - . *' ' - |aalla .a.ailtHlM 

Taticfoga cheque for £85 □ - _ 

. - 28 >>»»» 

> Morning: Three months £830. 21. 22. 
23. Afternoon: Three months £823. 21. 
■'Kerbs: Three months £621. 

■Coats per pound. IJX per plcuL 
. t On previous unofficial, dose. 


; 8Hv*r was fixed 1-2p an ounce higher 
.for spot delivery In the London bullion 
■market yesterday at 2S8.0p. U.S. cent 
equivalents of the fixing levels were: 
:jpot SteDc, up 1DJ)c: three-month 
012:1 c, up 113c; elx-rponth 826.5c. up 
,12.8c; and 12-month. S2.5C, up 13.6c. 
The apparent anomaly in dollar equivs- 
'lents was caused^by the dollar's weaker 
-trend in foreign exchange markets. The 
: metal opened at 294\-S5»,p (590-692c) 
and closed at. 296> r 297 x a (595-58^2). 

.. SIEVES Sul Hon 4- or E-ilJL 4. or 
.‘per fixing — oloae — 

troy at- price 

Spot..:! — jflaep j+U- 296^ r^O-4 
3 ouitlu. 306.860 1+1.76 304.76^ Uo.4 
.«Biwta. 314.15p r+4.16i — 

12 months S30.7fip j+LSj — 

LHE—Tumawr 4S9 (242) jots of 

-1Q.OOO ozs.' Morning: Threa months 306, 
T2, .0.5, 6.6. K«rb: Three months 308.1. 
6A.S.B. Aftamoon: Three months 305, 
4.9.-4.7:43. Kerb: Three months 3004> 
4A-C9. . 


UVB1POOL COTTON— Spot and ship- 
ment, wlu In Uvtfpotd Amounted to 
138 tonnes - The amount was fight in 
■ View, of the approaching holidays hut 
-Bpiftnets were- not entirely Idle. Scatter 

opened 3p lower on old crop unchanged 
on new crops. In thin volume wheat 
values eased slightly on country selling 
to close 10-15p lower. Barley values 
also eaeod to c(ose 10-20p lower. New 
crops saw a little trade end values 
eased a lightly to dose unchanged to 
lOp lower on wheat to unchanged to 
Ep lower on barley, Adi reported. 

wheat barley 

VeetenUy'al + or Vestcrdsy V+ nr 

31'ntb cU*«j j — dire j — 

J«n_. 91.05 j— OJllj Bd.OO |-0 J 

Mar- 98.30 B5.30 -0.16 

Mmv — 95.75 | — 0.1b I b7.8B —0.1 

KetU. 89.40 L 8S.33 — OJS 

92.30 1+0.01 1_ 86.60 .... — 

Business dons— Wheat: Jen. 91 .20- 
SI .05, March 33.40-93.30, May 95.35- 
95.80, Sept 89.40-89.40, Nov. 92.30- 
92.20. Sales 89. 8eriey: Jan. 83.20- 
63 JO. March 85.50-65.40. May 87.95- 
87^5. SbbU 83.50-33.50. Nov. 8860- 
86.50. Sales 158. 

EEC IMPORT LEVIES— The following 
levies and premiums effective for 
Dec. 19 are in order of current levy 
plus Jen., Feb. and March premiums 
(with previous In brackets). All In 
unite of account per tonne. Common 
Wheat: 80.33. 1.08. 1.08. nil (80.33. 
1.40. 140. nil). Durum Wheat 118.07, 
1.44, 1.44, nil (118.07, rest nil). Rye: 
838.83 rest nil (83.83, rest nil). Barley: 
85.68, rest- nil (88.68. rest nil). Oats: 
79.35. 4X1. 4.21. 2.39 (79.36, 4.53. 4.53, 
0.50). Maize (other then hybrid for 
■eedlng): 78.2E, rest ml (7E.25. rest 
nil}. Buckwheat nil, rest nil (nil, rest 
ml). Millet BOS. rest nil. 0.S3 (83.82. 
rest nif, 0.63)/' Obi) Sogruhat: 77.14.' 
rest nil (77.14. rest nil). Fleur levies: 
Wheat or mixed wheat end rye flour: 
122.81 (123.81). Rye flour. 128.00 

(1 28.70). 

MARK LANE-"Feiriy quiet due ta 
pre-Christmas inactivity. Nominal 

December... 1K.2fl-S9.fl +l.3S'22J» 
kvi. rusty — 126.80-18.4I+ 1.201 26. 60-87.60 

April 128.70-28.91+0.40 26.80-SB.M 

Juno. 124^1-24.8 -24^0 

August U4Jj-i6.^— OJS — 

Ui-luhcr 124.711-25^ — 0.36 >24. 60 

Dw+mber.... I2i.6B-2BJl|— 0.1b| — 

Sales: 63 (54). 


£102.00 (same) a tonne en for Nov.- 
Dee. shipment. White sugar deify price 
was fixed et £100.00 (£102.00). 

Scattered sell-et-best orders produced 
an easier tone initially, but the lows 
were shortlived and prices quickly 
rallied some 100 points. Later, further 
gains were recorded, but New York 
quotations turned easier end final 
prices ware only slightly above opening 
lava la, reported C Ctamikow. 

lavab, reported C 

~9uiisr I ' f 
l*m. Xa«tfrtaW 
Comm. . 6 lose [ 
L'.m. I 

Previous Budoen 
UIdh I Dodo 

. £ per canoe 

March .. 110.06-10.16:1 08 .HUB. 48:11.25-08-25 
Miyr— IlSJO-ia.lPl 11.40. |8.ID|I4£0-12. 40 
A UR.—. 116.86-16.90.1 18. 60-1 BAS 18 .SO- 16.76 

Holiday egg 
glut sold 
for export 

By Our Commodities Staff 

THE EFFECTS of the seasonal 
glut of eegs which will he laid 
over the Christinas holiday have 
been partially offset by an ex- 
port drive led by the National 
Egg Packers' Association. 

It has arranged to dispose of 
some 100.000 cases — 36m eggs 
— to buyers from outside the 
Common Market and companies 
in the egg processing trade in 

The association said yester- 
day it had arranged & “sub- 
stantial " contract with Inter- 
eggs. the export firm. 

Egg sales in Britain cus- 
tomarily slump during Christ- 
mas. The shops are closed, and 
family diets temporarily ex- 
clude the more commonplace 

Hens, however, continue lay- 
ing eggs, and toe usual con- 
sequence is a post-holiday glut 
of supplies which drives prices 


Belgians buy 
Polish copper 

By Christopher Bobinski 
WARSAW — Impexmetel, the 
Polish copper foreign trade 
organisation yesterday signed a 
contract to export 7,000 tonnes 
of electrolytic copper a year to 

The agreement, which is to 
run from 1979 to 19S2 is with the 
SociCtd Generate des Minerals 
and the copper it to be sold at 
prevailing market prices. 

This is the first time Belgium 
will have bought copper in 

At the same time a credit for 
the development of Poland's 
copper industry was signed 
between the Bank Nadlowy 
Warszawie and toe Soci£t& 
Generate de Banoue. No details 
of the loan were disclosed. 

Poland exported 117,919 
tonnes of copper in 1977. 

Turkeys at 
56p a pound 

FRESH TURKEYS were only 
5 per- cent dearer than last 
year when more than 1,000 were 
on offer at the Christmas turkey 
sale at Aylsham, Norfolk, 

Keenest demand was for 
smaller birds, between 10 lbs 
and 12 lbs, which sold for up 
to 68p a pound and averaged 
56p a pound. The bigger birds 
up to 20 lbs averaged 60p a 

107.00, 107.50. 108.25-07.75, 119: July 
112.60. 112.76. 113.50-13.00. 25: Sept. 

117.75. 118.00. 119.00-17.75. 333: Nov. 
124.25. 124.50. nil. nil: Feb. 129.50. 

129.75. 130.50-29-25. 71: Apr. 131.75. 

134.00. nil. nil. Sales 582. 


LONDON— The market was dull and 
featureless, reported Beche. 

i Pence per KUu) 

Australian or, Uaaia&u 

Ureaay Wool L'low j — | Done 

(118.07, rest nil). Rye: 
(83.83, rest nil). Barley: 

pre-Christmas inactivity. 

value*. Milling wheat. 



0.-U ...... TI8.8O-]S.88[I1S.60>1 0.SJ|SB. 86-19 JO 

l*ec 182^0-82.76 122.10- 22.«M.75-8U0 

March .J128^B-I64O l , I28J»-20.76r 28.75 
May jmjMSJWWjiajg — 

Sales: 1472 (821) tots of 50 tonnes. 

Ton Mid Lyle ex-refinery price for 
granulated basis whin sugar was 
£264.85 (sums) a tonne for home trade 
and £173.00 (asms) for export. 

IntenUtiOMi . Sugar Agreement (U.S. 
cents per pound) lob and stowed 
Caribbean port. Prices for Dec. 15. 
Dally 8.17 (8.18); 15-day average 7.93 

WHITE SUGAR— Close (In order 
buyer, seller, business sales). Feb. 
100.00. 101 JO, 103.60-03.00. 24: Apr. 

‘Hidden’ costs 
to Britain 
of the CAP 


THE "HIDDEN” costs to 
Britain of the Common Agri- 
cultural Policy are revealed in 
a paper released today by toe 
Centre for European Agri- 
cultural Studies at Wye College. 

In a wide-ranging and closely 
detailed study Prof. U. Koester 
of Kiel University tabulates the 
awful truth about the real 
import of the annual price-fixing 

He shows that for every l 
per cent increase in the 
“ common ” price for butter in 
the EEC, Britain has to pay an 
extra BBm units of account 
(about £3m) to its wealthier 
partners which produce the bulk 
of Europe's butter. Italy, too, 
the poorest Community mem- 
ber, is in much toe same 

Prof. Koester, applying toe 
same computations to a 1 per 
cent rise in toe price of wheat, 
barley, sugar, beef and dairy 
produce, shows that Britain has 
to disburse almost £10m. And 
this payment is matched almost 
exactly by a net gain for France. 

West Germany, on the other 
hand, pays out a mere £200,000 
for each 1 per cent increase, 

“ Every price increase for an 
interventoji product stimulates 
an additional income transfer 
between the EEC countries,” 
Prof. Koester writes. 

“It is not at all surprising 
that toe UK is more strongly 
opposed to a price increase for 
butter than for other products.” 
■ In his finely-detailed and 
wide-ranging dissection — or 
rather dismemberment — Prof. 
Koester also charts toe growth 
of disillusionment among Ger- 
man farmers and consumers 
with toe workings of toe CAP. 

The producers are concerned 
that the recent trend towards 
marginal increases in prices will 
become established practice. 
And they are also vividly aware 
of toe political pressures play- 
ing on their livelihoods. 

A farmer’s income is now only 
partly dependent • on his 
efficiency. “ The effect of poli- 
tical decisions is more and 
more dominant Understand- 
ably, this creates a feeling of 
insecurity among farmers,” the 
paper says. 

While food processors In 
Germany did relatively well out 
of toe CAP in the early days, 
industrialists now are becoming 


. Price la tonnes unless otherwise 

December .. 217.0 25.0 _ 

Morcu 218.0-ttJ) — 

May *34.046.0' - 

July 231.0-0.0' — 

Ucialwr 434.040.0' — 

De cemb e r ...U35.0-42.0 — 

M*reb .ji:S6.M4.0' — 

AI*v...._ l239.040.0- -....: — 

Salas: Nil (same). » 

SYDNEY GREASY— Close (in order 
buyer, seller, business, sales). Micro- 
Contract Dec. 343.0. 344.0. 344.0-343.0, 
17: March 350.9. 351.5. 352.1-351.0. 16: 
May 357.0. 357.5. 358.M57.6. 10: July 
380.2, 361.0, 360.5-360.5, 10: Oct. 383.0, 
363.5. 383.7-363.0. 19; Dec. 366.0, 386.5, 
366.5-3665. 12: March 368.9. 369.5. 
369.0-369.0. 10; May 369.7, 372.0. nil, 
nil. Sales: 94. 

(in order buyer, seller). Dec. 164.0, 
190.0: March 183.0. 185.0: May 195.0. 
186.0: July 187.0, 190.0: Oct. 190.0. 
193.0: Dec. 192.0. 197.0; March 193.0. 
138.0; May 193.0, 198.0. Soles nil. 

BRADFORD — Business locally was 
quiet, dealers said. Deliveries have 
improved a tittle and prices wore fixed 
more according to the low levol 
, offered by buyais than costs. Most 
firms will be closed throughout the 
Christmas week. 


SMITHFIELD— Pence per pound. Beef: 
Scotch killed sides 66.0 to 69.0. Eire 
hindquarters 69.0 to 72.0, forequarters 
34.0 to 38.0. 

Veal: Dutch hlnde and ends 98.0 
to 100.0. 

Lamb: English small 48.0 to 59.0, 
medium 48.0 to 52.0. heavy 44.0 to 
50.0. Scots h medium 48.0 to 62.0, 
heavy 44.0 to 50.0. Imported frozen — 
HZ YL's 46.0 to 48.0. 

Pork: English, under 100 lbs 36.-5 
to 47.0, 100-120 lbs 36.5 to 46.0. 120- 
160 lb* 35.0 to 42 0. 

MEAT COMMISSION— Average fat- 
stock prices at representative jparkets 
on week ending December 16. GB — 
Cattle 71 .67p per kg l.w. (4-2.691 . 
Sheep 132.&P per kg estidew. (-0.3). 
GB — Pigs ffi.Bp per kg l.w. (4-1.2). 
England and Wales— Cattfs numbers up 
273 per cent, average price 71.41p 
(4-2.841. Sheep numbers down 9.4 
per cent, average price 132.8p (—0.41. 
Pig numbers up 31.9 per cent average 
price 65.6p (4-1.2). Scotland — Cattle 
numbers up 22.5 per cent, average 
price 72.71p (4-2.14). Sheep numbers 
up 0.9 per cent, average price 12B.6o 
(4-0.3). Pig numbers up 34.3 per cent, 
average price 65.8p (4-1.0). 

MEAT COMMISSION — Average lat- 
atock prices et representative markets 
on December 18. GB cattle 70.l2p per 
kg. l.w. (-2.16). UK sheep 134.6p 
per kg. est. d.c.w (4-1.1). GB pigs 
62.7p per kg. l.w. (—3.8). England 
end Wales: Cattle numbers down 24.1 
per cent, average price 69-55p (—2.62). 
Sheep numbers down 27.0 per cant, 
average price 134.1 p (4-0.3)-. Pig 
numbers up 2.7 per cent, eve rag a 
price 62.6p (—3.9). Scotland: Cattle 
numbers up 1SJ> per cent, average 
price 71.77p (—1.01). Sheep numbers 
down 10.1 per cent, average price 
132. Sp ( 4-2.6) . • Pig numbers down 
4.9 per cent, average price 65. 7p 
(- 0 . 6 ). 

COVStfT GARDEN— Prices in starling 
per package except where oibarwtse 
stated. Imported Produce: Lemons — 
Italian: 120's new crop 5.25-5.50; „ 
Greek: 5.00-5-50: Cyprus: Troys 4.80- 
6.20. boxes 80/180's 4.00-6.25; 

English Produce: Potatoes — Per 25 
kilos 1 .50-2X0. Lettuce— Par 12 round 
1.60-1.80. Mushrooms — Par pound 0.50- 
0.55. Apples — Per pound Bromley 0.06- 
0.12. Cox’s Orange Pippin 0.06-0.15. 
Worcester Pearmaln 0.04-0.06. Russets 
0.06-0.09. Spartan 0,08-0.10. Pears— 
Par pound Conference 0.0641.15. Comice 
0.1443.1 B. Cabbages — Per crate 0.90. 
Celer y Per head 0.12. Cauliflowers— 
Per 12's Kent 3X0-4.50. Beetroot— 
Per 28-lbs D. 60-0.70. Carrots— Per 28-lbs 
0.50-0.60. Ca pn ict un s - P ar pound 0.30. . 
Onions— Per beg 1.80-2^0. ■ Swedes — 
Per 28-lbs 0.50-8.60. Turnips — Per 28-lbs 
0.80-0 JO. Parsnips— Per 28-lbs 1.00- 
1-30. Sprout* P ar pound Q.06-0J37. 

Do-. 144- nr Month 
197B I — I ago 


Al umini um X710 | Lfi7I0 

Free market tc/sj .jSl.l7D/B» 'SUBfl/SO 

Cupper caab W Bar£768 -8.86*749.5 

3 montba do. Uo.£7B4.2fi -7.S l£770.76 

Cash Cathorto >£754 i— 8 '£738.5 

3 months do. rtn.tC772.ZB —7.75 £759.26 

Gold .Truy 0^8212.876 +6.75 6189-876 

tead-eaah j£427 + 0.75. £3 9 1.5 

5 man til* _ '£402.25 [ — 0-6 X3BB.9 

Nickel ' * t 

Free Xatfket(cU)(lb){si.68 '61-70 

{ 1.80 1 1.80 

Platinum troy oc...l£156 — *148 

Free Market. ;£172 Ul.9 £165.2 

Quicksilver — !» 148|55 : « 1S6|«0 

Silver troy ui~ 2B8p 1+ 2.2 307.75p 

3 months 305.25p + l.75!315.75p 

Tin caab 157.030 L-5S £7.480 

3muntiu_. £6.952.6—40 57.380 

Tune-ten i*) K 143.63 

W.illram 22.04 eft - S137|4S| |S 140/45 

Zinc cash £355.761-0-75 £345 

i months £347 1—1 (£357.5 

Producers. „.|$730 ;S730 

Oils I | 

Comnut (Phil) |S930 p !B840 

Gruun-lnut £1,010 : 

Linseed Crude. £336 -6.0 ,£330 

Palm Malayan 5613* +10.O l J593 


Copra Philip 560Q? '8570 

doysLema (U .8.) *2B6u + 2-0 !»276 



Home future £85.3 —0.4 £85.0 


Preadi Ko. 3 Am £106.DO £103.8 


No. 1 itod busing £96.0 £94.5 

iNo-SHartWinicr £87.23 £89.73 

Kngliab JltiUnj; t[£93.5» (£B8.5 

Other Camnodities 

t-Vcua bhlnmant.... £8.012 fil.0£2.211 

Kuuire Mar. |£1b6U 60.5£2,17D^ 

Coffee Future I 

Mar £ 1^88. 6—9.0 '£1.417 

Cofton -A - Index. ..178.96c 1—0.1 l79.3o 
Rubber ldk> 156^5 p — 1.26'59.Sl< 

Kuuire Mar... iglMl.5 •— 6O.5£8,170J 

Coffee Future I 

Mar £ 1.28 B. 6—9.0 '£1.417 

Cofton 'A' Index. ..178.96c 1—0.1 l79.3o 

Rubber Ulf. 156.25b — 1.26'59.Sl< 

bugaf Uta^) (£108 ^100 

Wooltopa 64a (ffiki).|271p 1.0 'B74p 

* Nominal, t New crop, t Unquoted, 
a Jan. -March, p Dec. -Jan. Q Jan. -Fab. 
I Feb. a Jen. i Par ton. z indicator 



Doc. lb Dec. 14 11 until ago | Year tgo 

857.7 6 | 8SS.39I 269.84 i 8 39.82 
(Base:' July l. 1852=1HI 

_ REUTERS _ _ 

Dec. 18j !Deu. 16 Mouib ago j Year ago 

1602.51 1506.0; 15093 | 1417^0 
(Bara: September 18, USl'aiM) 


I Dec. j l)«. i MonlhFYrer 

Jones I 16 | 14 1 ago ago 

S«* .... 385.17,382^2 393.04 353.88 

Future* l361.70|380.54‘3B9.82l 324.37 
lAverase 1824-25-26=190) 

increasingly uneasy about toe 
distortions in trade flows caused 
by toe complexities of a puta- 
tive “common" policy which 
in practice has so few truly 
“ common '* aspects. 

Food manufacturers enjoyed 
something Of a profits bonanza 
when the CAP was launched. 
Then, in the interests of a 
*■ common " price range for farm 
products. German prices were 
cut. The savings on raw 
material costs to toe food Indus- 
try, far from being passed ou to 
the consumers, were absorbed 
as extra profits for manufac- 
turers and retailers. 

But the farm, policy is now 
much more complex and 
burdened with political and 
bureaucratic excesses. “Germap 
processors realise more ajpd 
more that the present system 
of price policy leads to arbitral? 
commodity flows which are not 
predictable." Prof. Koester says. 

“This may endanger foe 
existence of an industry from 
time to time." 

In his search for common 
elements in the policy, the 
author notes that in the first 
seven years of this decade the 
average annual increase in food 
prices in Britain was 14.3 per 
cent. In West Germany it was 
4.9 per cent 

Farmers’ incomes have 
altered in a most erratic fashion 
and if looked at in isolation 
show no signs of being the 
faults of a “ common ” policy. 

Prof. Koester is particularly 
damning in his views on the 
operation of monetary com- 
pensatory amounts — the means 
by which the Community 
applies levies and subsidies in 
a bid to operate common 
trading prices and impose "fair 
competition " on farm markets. 

“Accepting that the MCAs 
are nothing more than duties as 
far as the functioning of lhe 
market is concerned, we may 
state that trade restrictions 
within the SEC are currently 
greater than is permitted accord- 
ing to General Agreement on 
Tariffs and Trade rules,” he 
says disarmingly. 

The CAP and our Food, Prof. 
U. Koester, £1.75 from CEAS, 
Wye College, Ashford, Kent, 
(The paper is based on a lec- 
ture the professor gave at an 
EEC Commission sponsored 
seminar recently.) 

NEW YORK, Dec. 18. 

Cocoa— Dec. 174.16 (175.90). March 
173.60 (175.60), Ma/ 173.46. July 

173.30, Sept. 171.70. Dec. 158.50, March 

166.00. Salas 397. 

Coffee—" C " Contract; Dec. 134.25- 

135.00 (139.50), March 128.50-1 27.00 
(127.34). May 125.00-128.50, July 

121.50- 122.00, Sept. 119.50-120.50, Doc. 
110.00-120.00. March 118.00 bid. May 
112.44-122.00. 'Salas: 1,126. 

Copper— Dap. 88.00 (87.85), Jan. 

68.15 (56.00), Fob. 68.95, March 69.70, 
Mo/ 70.95. July 72.10. Sapt 73.15, Dec. 
74.46, Jan, 74.85, March 75.65, May 
78.45, Jul/ 77.25. Sept. 78.05. 

•Gold— Dec. 214.70 (205.30), Jan. 
215.80 (206.40). Feb. 217.80. April 
22160. June 225.40, August 229.40, 
Oct. 233.30. Dec. 237.20. Feb. 241.10. 
April 245.00. June 248.90, August 

252.80, Oct. 256.80. 

t Lent— Chicago loose 23.25 (aame). 
NY prime steam 24.25 nom. 

ttMalra— Dec. 21BV220> 4 (218V). 

March 233*7-233% (2314). May 242-242%, 
July 248. Sept. 249V. Dec. 2S3V252V. 

^Silver— Dec. 595.60 (587.50). Jan. 
597.20 (5B9.80), Fob. 600.60. March 

604.00. May 611.50. July 620.20. Sept. 

529.00. Dec. 642.70. Jan. 647.80. March 

657.30, May 667.10, July 676.90, Sopt. 
586.70. Handy Harman spot 596.00 

Soyabeans — Jan. 703-702 (7B9M. 

March 717-715 (7DZV), May 723-722. 
July 7 22V 723, August 713, Sept. 891, 
Nov. 874-673. Jan. 881. 

IlSoyabean Meal— Dec. 198-50-198.30 

(194.50) . Jan. 197 501197.60 () 193.90). 
March 196.20-195.10. May 192.70. July 
191 .60-192.00. August 191.30. Sept. 

189.50- 1 90.00, Oct. 188.50. Dec. 165.30. 
Jan. 184.50-195.00. 

Soyabean Oil — Dec. 25.70-S.75 
(25.02). Jen. 25.75-25.80 (S.02I. 

March 2S.80-25.75. May 25.60, July 
25.50. August 25.40. Sept. 24.75-24.70. 
Oct. 24.35-24.30. Dec. 24.00, Jan. 24.00 

Sugar — No. 11: Jan. 8.45 (B.45). 
March 8.99-9.00 (8.99). May 9.19, July 
9-41-9-44. Sept. 9.65. Oct. 9.74. Jan. 
9.65-9.90. March 10.25, May unq. 

SPIatlnum — Jan. 346.00-237.00 
(337.401. April 349.00-349.50 (339.60), 
July 351 .50-351 .80, OcL 354.20. Jan! 
356.40-356 60. April 358. BO- 36 8 -90, July 
361 .70-261 .40. 

fflWheat— SCWRS 13.5 per cent pro- 
teoln conent eh St. Lawrence 187.07 

■Wheat — Dec. 373V 374 (3S0V) 

March 348-3471, (232h). Mav 339. July 
3251*. Sept. 330>*. Dac. 341V 
_ WINNIPEG. Dec. 18. ttRye— Dec. 

96.00 (96.00). May 102.50 asked 

(102.50) . July 103.60 asked. Oct. 101.40. 

tfOats — Dec 90.00 (87.70 bid). 

March 81.60 (81.00 asked). May 79.50 
asked. July 79.00 asked, Oct. 78.70. 

ttBariey— Dac. 73.80 bid (73.80 bid) 
March 76.10 bid (76.00 asked). May 

76.80, July 77 J® bid. Oct. 77.20 oskad 
SSFIaxseed — Dec. 275.00 bid (272.001 

MOY 28600 asked (282.00 bid). July 

286.00 asked. Oct. 2B4.10. 7 

All cents per pound ex-warehouse 

unless otherwise stated. * Ss per troy 
ounce — 100-ounce lots, t Chicago loose 
Ss per 100 ibs— Dapt. of Ag. prices 
previous day. Prime steam lob NY bulk 
tank cars. t Cants per 5fi-lb bushel 
ex -warehouse, 5.000-bushef lots. § 
par troy ounce lor 50- oz units of 89.9 
par cant purity delivered NY. 1 Cents 
P° r troy ounca ex- warehouse. H New 
“ B ” contract in Ss e short ton for 
bulk Iota of 100 short tons delivered 
fob cars Chicago. Toledo. St. Louis and 
Alton. *• Cents par 69-lb bushel in 
store. ft Cants par 24-lb buahel. 
It Cents per 48-lb bushel ex-warehouse. 
IS Cents per 56- 1b bushel ex -wo re- 
house. 1,000-buaehi lota, flq CS per 


_ troth Year 

Moody's 16 I 14 j ape | ago 

S ple Co mmty B06.6972.B91.67 *76.1 
(December 81. 1931=100) 

GRIMSBY FISH — Supply moderate, 
demand good. Prices at ship's side 
I unprocessed) per stone: Shell cod 
£6.00-87.40. codlings C3.80 C4.50; large 
haddock 84.6O-C5.80. medium C4.40- 
£4.90. small E3.80-C4.40: large plaice 
£4. SO- £6. OO, medium E4.80-C6.20. beat 
small 85.00-E5.60; medium skinned dog- 
fish 86.50: large lemon soles £10.50. 
medium £8.50; rock fish £2-40-£3A0; 
oeithe £2.00- £3.30. 

Butter subsidy 

THE CONSUMER subsidy on 
— • butter will be reduced by a 
further l.Sp a pound oa 
January 1. This does not how- 
ever, automatically signal a 
,b?i cod parallel increase in shop prices, 
io; large Retail prices are often distorted 
, SI** by the heavy price cutting 
jo, beat campaigns undertaken in many 

iSHp new basic rate will be 

£114.15 a tonne- 

f - >. .»• .> ’it „ . 

. .-»■ ■ - •- y, • 



Firiaacial -TUn^.i^e^ 1978 . . 

Companies and Markets 


Dollar weakness major depressant in stock markets 

Equities resume downturn and 30-share index falls 7.0 to 474.0 


I Dec. 7 Dec Dev*-!' Dac. • -J>w. } Dec. rA 
! _ IS 15 W - 13 . _ . JiS : .] U . j ego 

Account Dealing Dates 

‘First Declare- Last Account 
Dealings tlons Dealings Day 
Nov. 27 Dec. 7 Dec. S Dec. 19 Dec. 28 Dec. 29 Jan. 9 
Jan. 2 Jan. 11 Jan. 12 Jan. 23 

* “ New time " dealings may take place 

from 930 am tan has loess daps earlier. 

The dollar’s weakness follow- 
ing news of the 14.5 per cent rise 
in the OPEC crude oil price to 
be - phased in over the next nine 
months undermined sentiment 
yesterday in stock markets, 
replacing Friday's steadier ten- 
dency with a very flat tone 
indeed. Expectations that Wall 
Street would be depressed were 
confirmed with early afternoon 
reports of sharply lower quota- 
tions there after the first few 
hours’ trade. 

Recently put off by political 
uncertainties and concern about 
the threat c# widespread labour 
disputes in the public sector, 
potential buyers in London were 
even less in evidence yesterday. 
The dollar’s demise gave rise to 
renewed feass of further upward 
pressure on U.S. and UK interest 
rates which found reflection in 
moderate but widespread falls 
amor /2 Gilt-edged securities. 

Stirling's relative strength 
aaainst the dollar led to worries 
about reduced overseas earnings 
which left above-average losses 
in shares of large exporters and 
those with big overseas interests. 
A considerable amount of yester- 
day’s initial selling was directed 
at these companies and although 
the pressure subsequently faded, 
little was made by way of a 

As measured by the FT Indus- 
trial Ordinary' share index, vir- 
tually all of last Friday’s techni- 
cal rally was surrendered at 
yesterday’s first calculation and 
the fall was extended to 7.1 at 
3 p.rn. before a close of seven 
points down on balance at 474.0, 
the lowest since November 21. 
The number of bargains marked 
remained depressingly low at 

With the genera! background 
hardly conducive to investment 
in British Funds, quotations re- 
acted in all sectors of the market. 
Interest rate fears were particu- 
larly noticeable at the shorter 
' end where a small after-hours 
rallying movement finally 
aborted and left losses extending 
to 5-16ths. Trade in the longs 
remained moderate, but losses 
among the high-coupon issues 
reached i- 

A confusing day in the invest- 
ment currency market in light 
of the continuing uncertainties 
about Ireland's decision to join 
the EMS saw the premium 
fluctuate narrowly yesterday and 
close H lower on balance at 75J 

per cent. Yesterday’s SE conver- 
sion factor was 0.7367 (0.7404). 

• Mainly because of a fairly 
lively trade in EM* in which 120 
contracts were completed, the 
total number of deals done in 
the traded option market yester- 
day improved to. 378 from last 
Friday’s 322. 

Reflecting concern for overseas 
earnings in the wake of an ailing 
U.S. dollar, ICf eased 5 to 3ti5p. 
Despite the news that Birming- 
ham and Midland Counties Trust 
had increased its stake to 16.7$ 
per cent, Bernard WarriJe 
cheapened a penny to 33p. 

Irish Banks better 

Suspended for an hour while 
dealers awaited details of pos- 
sible trading restrictions which 
might follow Ireland’s decision 
to join the EMS, trade in the 
Irish banks was eventually 
Started around 10.30 am although 
no official statement came. Bank 
of Ireland moved higher on 
modest support to close 14 to 
the good at 407 p and Allied 
Irish closed 5 better at 200p. 
Elsewhere, home banks drifted 
lower in thin trading. Lloyds and 
Nat West both lost S to the com- 
mon level of 27Sp. Among 
Merchant banks, Hambros 
touched lS5p in early response 
to Press comment before closing 
only 2 dearer on balance at 178p. 

Insurances gave ground in 
quiet trading and closed with 
falls ranging to 10. 

Breweries drifted lower in an 
extremely low level of business. 
Arthur Guinness, at 158p. 'lost 
4 of Friday’s gain of 5 which 
reflected the good results. Profit- 
taking also clipped 2 and 3 
respectively from Bass Charring- 
Ion, I71p. and Yaux, 12Sp, after 
last week’s trading statements. 
Elsewhere, Distillery issues eased 
around 3. 

■ Awaiting developments con- 
cerning the possible sale of T. W. 
Ward's 26.6 per cent stake. 
Tunnel B encountered a fairly 
active two-way trade and, after 
falling to 312p, made steady pro- 
gress to close unchanged on 
balance at 324p. Other Building 
descriptions declined in thin 
trading. Richard Costain dropped 
8 to 232p and Taylor Woodrow 
12 to 403 d. The Irish decision to 
join the European Monetary Sys- 
tem prompted late interest in 
Cement Roadstone which put on 
6 to 102n. 

The recently-announced trad- 
ing statements prompted fresh 
interest in James Latham, which 
added 5 to 132p, and Nottingham 
Brick, a like amount to the good 
at a 197S peak of 335p, but the 
disappointing interim profits and 
the chairman’s revised thoughts 
about the full-year outcome left 
A Monk 64 down at 90Ip. The 
late announcement that Heywooti 
Williams is setting up a separate 
operating entity to produce win- 
dow components for the building 
industry made nn aparent impact 
and the shares finished a couple 
of pence easier at 149p. • 

Stores quietly dull 

A business survey stating that 
consumer spending could be 
lower than expected this Christ- 
mas served to depress leadiag 
Stores which drifted lower on 
small selling and lack of sup- 
port. Gussies A finished 4 off 
at 310p, after 308p, and Marks 
and Spencer cheapened 3 to 83p, 
as did House of Fraser, to lS4p. 

up 4 to 372p, and GKN closed a 
few pence off at 253p. The 
majority . of- movements in 
secondary issues' were also 
against holders. Against the 
trend, satisfactory trading state- 
ments left- J. and EL EL Jackson, 

35p. and British Steam 
Specialties, 94p, a penny harder. 
Buying interest was shown in 
United Engineering, 3 to the 
good at 84p, and Ransomes Sims, 
a like amount dearer at 168p- 




m. ABC S£F ocr met- ost 

Elsewhere, the absence of bid 
developments prompted a fall of 
6 to 16Sp in MF1 Furniture, but 
Press comment helped K. O. 
Boai dman harden a penny to 

The Electrical leaders took on 
a distinctly dull appearance as 
•the market became vulnerable to 
scattered offerings. GEC fell 
away to 327p before rallying a 
shade to settle at 32Sp for a fall 
of 7. Thom gave up 8 to S56p. 
while EMI lost 4 to 13Sp and 
Plessey 2 .to lOSp. Electronic 
issues followed the downward 
trend, with falls of around 8 
marked against Ferranti. 34Sp, 
Farnell. 3S5p. and Racal, 336p. 
Elsewhere, United Scientific, at 
257p, gave up 5 of last Friday’s 
rise of 12 which followed the 
annual results. Against the 
trend. Audio Fidelity were 
favoured at 42p up 2, along 
with Cray Electronics, a like 
amount dearer at 35p. 

Occasional selling and the 
virtual absence of support left its 
mark on the Engineering leaders. 
Hawker were noteworthy for a 
loss of 8 at 218p. while Tubes 
were also on offer and fell a like 
amount to 37 2p. John Brown gave 





Creditors ot the above-named Company 
are required on or be) or a the 29th day 
o) June 1979. to send their names and 
addresses and me particulars ol their 
debts, or claims, and the names and 

addresses ol their Solicitors if any, to 
House, 87/37 Gresham Street, London 
EC2V 7D5. the Joint liquidator ol the 

■aid Companv. and. II so required by 
notice In writing from the said Liquidator 
are by their Solicitors, or personally, to 
come in and prone their said debts or 
claims at such time and place as shall 
be specified in such notice, or In ddairit 
thereof they will be excluded injm the 
benefit of any distribution made before 
such debts are proved. __ 

Dated this Bib day of December. 1978. 

G. A. WEISS. Joint Liquidator. 

No. 003716 ol 1978 
Chancery Division Companies Court. In 
the Matter or LAGONA BUILDING 
CONTRACTS LIMITED and in the Matter 
oF the The Companies Act. 1948. 

Petition lor the Winding up of the 
above-named Company by the High 
Court of Justice was on the 20th day 
of November 1978. presented to the 
LIMITED whose registered office is at 
BMC House, 53/55 High Street, Feliham. 
Middlesex, and that the said Petition 
is directed to be heard belorc the 
Court sitting at the Royal Courts of 
Justice. Strand. London WC2A 2LL 
on the 15lh day at January 1879. and 
any creditor or contributory of the 
said Company desirous to support or 
oppose the making of an Order on the 
said Petition may appear at the time 
of hearing, in parson or by his counsel, 
for that purpose; and a copy of the 
Petition will be furnished by the under- 
signed to any creditor or contributory 
of the said Company requiring such 
copy on payment of the regulated 
charge for the same. 


2 Suffolk Lane. 

Cannon Stroet. 

London EC4R 0AU. 

Solicitors lot the Petitioner. 
NOTE. — Any person who intends 10 
appear on the hearing of the said 
Pennon must serve on, or send by 
post to. the above-named notice in 
writing of his intention so to do. The 
notice must state the name and address 
ol the person, or. if a firm, the name 
end address of the firm and must be 
signed by the person or firm, or hi* 
or their solicitor fit artvl and must be 
served, or. if costed, must be sent by 
post m sufficient time to reach the 
above-named not later than (our o'clock 
in the afternoon of the 12th day of 
January 1979, 

No. 003923 of 1978 

Cbantvry Division. Co mpanie s Court. In 
LIMITED and in the Matter of Tbo 
Protection of Depositors Act. 1963. and 
in the Matter of Tho Companies Arts. 
1WS to 1967. 

Pentioo for the Winding up of the above- 
named Company by the Hhdi Court of 
Justice was on the nth day of December, 
197R. presented to the said Court by THE 
of z, viciorta Street. London. S.WJ. and 
that the said Petition is directed to ho 
heard before the Court si Kmc at the 
Royal Courts of Justice. Strand, London. 
HC A 2LL. on the 22nd day of January 
1879. and any creditor or contributory 
of the said Company desirous id support 
or oppose the making of an Order oo the 
said Petition may appear at the time of 
hearing, to person or by his counsel, 
for that purpose: and a copy of the 
Petition will be furnished by the under- 
signed lo any creditor or contributory 
or the said Company reqmrure such copy 
oo payment of the rccuiaud charge for 
the same. 


Matthew Parker Street. 

London, S.W.-l. 

Sohclior for the Petitioner. 

NOTE. — Any person who Intends to 
appear on the hearing of the said Petition 
must serve on. or send by post to, the 
above-named notice in wrinnR of his 
intention so to do. The notice must state 
the name and address of the person, or, 
if a Arm die name and address of the 
firm and must be signed by the person 
or firm, or his or their solidtor flf anyi 
and must be served, or. if posted, must 
be sent by post In sufficient time to reach 
the above-named uot filter than four 
o'clock in the afternoon of the 19tb day of 
January, 1979. 



An unusual opportunity exists 
for a Company to lease and 
operate the Dry Ski Run and 
Ski Lodge situated in West 
London, adjacent to the A40/ 
M40 intersection at Uxbridge in 
the London Borough of 

This Ski facility is currently in 
full use. and the clientele in- 
cludes an active local Ski Club 
membership as well as school' 
parties from Education 

Interested companies should 
apply to the Chief Executive, 
London Borough of Hillingdon. 
Civic Centre. Uxbridge. 
Middlesex, for further details 
and tender documents: 
(Telephone: Uxbridge 50637). 
Tenders to be returned by 22nd 
January- 1979. 





The member lines ol the above con- 
le rentes wish to advise s hipperaic ommneg 
that, consequent i»oii Increases 'ncofref 
to date from sources beyond 
the current Inland rates "iwlleablc when 
they arrange Inland transport at shippers! 
consignees reouest are no longer corn- 
pensabary and, accordingly. * complete 

O.L. 1401 

the report and accounts of the cap- 
tioned company, for the period ending 
September SO. 1978. are available 
to the stockholders at the oHices ot 
Morgan Guaranty Trust Cy of New 

Torn in; _ 

Brussels. 55. avenue dcs Arts 
New York, IS. Broad Street. New 
York. NY 70015 

London. 35. Lombard Street. London, 
Zurich. Stockerstrasse 58 — CH 8022. 

review of the ‘conference tariff of '"land 
rates has been made and upward adjust- 
ments have been aarecd tjr become elec- 
tive 21st January., 1978. details of 
which mav be obtained from any ol the 
undemoted lines. , In view of the con- 
tinuing increases In costs which member 
lines are being forced to bear a further 
review or rates may well be necessary 
during 1B79- 

Atlantic Container Line G.I.E. 

Canadian Pacific Steamships Ltd. 

□art Containerline Company Ltd. 

Hapag-Lloyd A.G. 

Manchester Liners Ltd. 1 Joint 

Golden Cross Line Ltd. j Membership 
Ewtst Ross '(Westbound onlvl 


Cunard Building. 

Llveroool L3 IDS. 

December 1978. 

No. 003987 of 1378 
Chancery Division Companies 'Court. In 
the Matter of ITAL-SPED LIMITED 
and in t ha Manor of The Companies 
Act. 1948. 

Petition for the Winding up of the 
above-named Company by the High 
Court of Justice was on the 13th day 
ol December 1978, presented to the 
said Court by CHANNELPOHTS FOR- 
registered office is 20/22. Emerson 
Street. S.E.1 in Greeter London, a 
creditor, and that the said Petition 
is directed to be heard belore the 
Court sitting at the Royal Courts of 
Justice. Strand, London WC2A 2LL. 
on the 22nd day of January 1979, and 
any creditor or contributory of the 
said Company desirous to support or 
oppose rfce mating of an Order on the 
said Petition may appear at the time 
ol hearing, in person or by his counsel, 
lor that purpose; and a copy of the 
Petition will be lurnished by the under- 
signed to any creditor or contributory 
of the said Company requiring such 
copy on payment of the regulated 
charge for the same. 

J. E. 8ARING & CO., 

74, Chancery La»e. 

London WC2A 1AA. 

Rer: JAH. 

Solicitors for tho Petitioners. 
NOTE.— Any person who intends to 
so near on the hearing of tho said 
Petition must serve on. or send by 
post to, the above-named nonce in 
writing of his intention so to do. Tho 
notice must state the name and address 
of the person, or. il a f ,rm - the name 
and address of the firm and must be 
signed by the person or firm, or hie 
or their solicitor fit any) and must bo 
served pr. If posted, must be 50m bv 
post in sufficient lima to reach the 
above-named not later ihan lorn o'clock 
in the afternoon of the 19th day of 
January 1379. 




Commercial and Industrial Property 5.20 

Residential Properly 2.30 

Appointments 5.30 

Business & Investment Opportunities. ■ 

Corporation Loans. Production Capacity, 

Businesses for Sale/Wanted 6.25 

Education, Motors, Contracts & Tenders, 

Personal. Gardening 5.00 

Hotels and Travel 3.00 

Book Publishers _ — 

Premium positions available 
(Mi nimum size 40 column cuts.) 

£1.30 per single column cm. extra 
For further details mite to: 

Classified. Advertisement Manager, 
Financial Times. 10, Cannon Street, EC4P 








Louis C. Edwards rose to 26p 
before sha/Tng to close a net 4 p 
up at 25p on the Gulliver Foods 
share deal and management con- 
tract. Press comment encouraged 
a lively balanced trade in 

Barker and Dobson which 
touched 15ip before settling at 
14 ?p, unchanged on balance. 

In Hotels and Caterers, the 
recent flurry of bid activity 
directed buyers' attention to De 
Vere which put on 5 to a high 
for the year of 379p and Roqton 
which firmed 4 to 157p, but 
adverse Press comment left 
Queens Moat Bouses 2 cheaper 
at 38ir • 

Metal Box down 

Of the quietly dull miscel- 
laneous Industrial leaders, those 
with the biggest overseas earn- 
ings potential mostly bore the 
brunt of the falls on concern 
over the weakening dollar. 
Metal Box old and new lost 10 
apiece to 2BSp and 48p premium 
respectively, while Reckitt and 
Colman reacted a like amount to 
450p. Beecham touched 610p 
before closing only 3 off at 621p. 
while Turner and NewaU lost 4 
to equal its lowest so far this 
year of 166p following adverse 
comment. BOC International 
softened 1} to 66£p ahead of 
tomorrow's preliminary results. 
Elsewhere. Sotheby’s lost 7 to 
33Sp on small selling ahead of 
the annual results which were 
expected to be announced after 
market hours, while Aeronautical 
anrl General Instruments receded 

5 to 98p on the reduced interim 
earnings. Booker McConnell shed 

6 to 274p sod Broken Bill Pro- 
prietary declined .15 to 67Cp. 
Norcros hardened a penny to 97p 
following the interim results and 
Lawtex added 2 at 80p, after 81p, 
following favourable comment. 

Rank Organisation’s recent bid 
for Leisure Caravans stimulated 
interest in Joseph Webb which 
added li to a 197S peak of 19ip. 

Distributors, Harold Perry lacked 
suport and fell 5 to lllp. _ 

Newspaper/pubh'shing issues 
closed at lower levels after a 
quiet day's trade. Associated 
eased 4 to 174p, while Dally Mall 
A, 360p, and News International, 
270p, both ahed 5. Liveipool 
Daily Post were also dull and 
gave up 4 to a year’s low of 118p. 

Leading Properties closed 
slightly easier on a lack of in- 
vestment interest, but secondary 
issues held steady to firm. News 
of the £13.9m sale of the AMA. 
building in New "York lifted 
Centrovincial 3 to S9p and the 
capital shares a like amount to 
86p and, in a thin market. 
Hartley Industrial Trust put on 
3 to 33p, after 35p. Country and 
New Town and London and Pro- 
vincial Shop Centres added 2 
apiece to respective highs for the 
year of 3Sp and 150p- Profit- 
taking left recently firm Percy 
Bilton 6 off at 180p. 

Helped by the proposed 
increase iD crude oil prices by 
OPEC, the Oil leaders got of to 
relatively steady start but even- 
tually succumbed to the gene- 
rally drab and dull conditions. 
British Eetroleum finished 6 
lower at 920p and Shell 4 off at 
576p. Among secondary issues. 
Oil Exploration lost 4 to 222p. 
■while slightly disappointing 
figures for the third quarter 
lowered Tricentrol 2 to 154p. 

Losses were fairly widespread 
throughout .the Trust Sector. 
Rothschild stood nut with a fall 
of 5 at 200p. wtrirle Continental 
and Industrial eased 4 to ISBp 
and Great Northern 3 to 95p. 

Among ttonly-firaded Textiles, 
Courtaulds shipped 4 to llSp. 
Textured Jersey, <vn the other 
hand, responded to favourable 
weekend Press comment and 
hardened 2 Do a 1978 peak of 

But in this sector, the feature was 
De Beers, which, prompted by' 
U.S. buying, rose 4 to 3S6p.- - 

London Financials by contrast 
were generally lower, in line 
with the domestic industrial mar- \ 
ket although falls were confined,^ 
to 3 with Bio Ttato-afoc at 229p, 
Charter Consolidated at 13$p and 
Selection Trust at 456p. But Gold- 
Fields were steady at 178p, .« 
influenced by the gold price. 

The Australian market was 
quiet with the exception ■ of 
Diamond stocks which were - 
depressed after the sale of the 
Sibeka stake in the Ashton ;■ 
exploration consortium for what 
the market thought was a rela- 
tively low price. 

Members of the Ashton con*., 
sortiom were depressed. 
Northern Mining registered a : 
fall of 17 to 65p. while Ashton 
Mining slid down 14 to 62p.'. 
Couztuc Riotinfo. the consortium 
leader, moved 10 lower to 260 

There were further falls among i; 
Irish - Canadians following 
Ireland's decision to join the' 
European Monetary System, but: 
the flood of selling expected did 
not materialise. Westfield - 
Minerals, however, still lost 59 , 
to 230p. while Northgate were-- 
345p for a fall of 15 after touch- : 
mg 340p at one stage. Anglo- 
United lost 6 to 160p.- 

Government Se».~-.| 68.56 6830 OB.-60 68.78 6&S81 69. 

‘ Ftxtd Interest— 70.11 70.17 70.03 70,11 \ 7tjJM a 

■ htfnrtjl 474.0 481.-0 477.9 48077 .435.4 - 49i 

GbQJii ms- 133.7 .130.7 -13L9 133 J : 13SJ , 13S 

Wd Silnw^-8 {nn-} " 90. 5 SQJS 96:7 : «7.4 10C 

Old. Div. Yield 6.08 6,00 6J33 . 6,00 6^5 J - 1 

‘ Bitmntgs.Y’Wglfuil)- 16.07 15,98 \ - .15.70 .15; 

p/B n»tjo (mu (*) 'fl.08'. e.ra . b.±q a*7 'a; 

;; Dealing nreiteU-- 3 - 5 ^ 5 ;8®°. •: '4.17%*“? : 

Equity turnoTer £m.;. • — • ‘ BUC 60.10 72JJ8 66.17 67; 
: &qnity tei&iiiv CoUL-i — . 1S641J 14 i 6»9f l4 I B64fl6,4 

69.01 77.32 
.70.26 . 79.78 
492.3 469:8 
139.7 137-0 

;.a.87.' 5.66 
19.49 ;_.1749^ 
BJS 8 r. aaff 
4£liL:5 £07- 
67 J® 4833 

10 am 478.0. 11- am 4J5-.I. Noon 474UL. .474,1, . 

.. 2pm473J. -3wim9.- 

Latest IfRtMT (FI-238 :8Q26> , P'ZZ'-"-:- •' "-I: 

• * fftl *7^4, . i% ; ^ 

-'-'■' Basis 100 Govt. Secs. 16/10/26. Futsd fnt: 1928..'liwlire»rtef‘ On/. T/7/36. ; ; 
lUlinu 12/9/55. Ex-S pm. index carted June 1S7Z. SE ActivhjrJuiy^wq- 

-1R4? ■ - ' r" 


s.e/ /teTivmr> 

■Grid 3Jn 

I : M7a - . i 

5inoa CompflMJnn 


Low _ 

* - T/iar . 





127.4 - .49 jfiL - J 

»w( wm. i 





15a4 ISOM s 




(2 my- 

649.2 49* . 

(i */9/m ifsewfiwj _ 





442^" 1 43.8 5 

(22/S/ZCj (36/10/71) . ? 





S37J. 54^ /E 

(3/4/74) 1(26/8/1^ J 

147.7 ; *18.0- 
"110:6 . 186.5- 
. 21.7 . _83-l 

. J7.3 mi - 

- r42.8 -14T.6- 
138.6 14M 

■ :sa. 6- KtO 

; ^7.1 98-7.; 


Plastic film 

to cost more 

PLASTIC FELM prices will rise; 
by 10 per cent early next year, 
with further rises later, the . 
Packaging and Industrial Films ^ 
Association said yestmrday.' - ■ •* 
Higher polymer prices in the* 
UK and Europe and increases 
in other manufacturing costs 
were blamed. 

. . -/• . No* 

.-. ; - Denomina- of 

; Stock tion marks 

BP £1 ‘ 10 ;. 

GEC : 25p 8 

3CI fl « - 

Met^ Box “New" JMil/pa. .8; . ; 
Barclays Bank ... £1 7 : 

Grand Met 50p . ..7. 

Mkflahd Bank ... £1 

Rank Org 25p T . ” 

Shell Transport... 25p , 7 

DATs Defd. 25p S\, 

Rpih» ham 25p . j : 6 

Distillers 50p S'.f, 

Hawker Siddeley 25p 

Business in Motors was 
minimal with most issues tending 
easier. Dowty shed 4 to 280p and 
Associated Engineering lost 3 
more for a three-day fall of 7 at 
112p following the disappointing 
annual statement Among 

Very steady Golds 

South African Golds responded 
to the rise in the bullion pr ice. 
which closed up $5.75 at $212,875 
an ounce following the OPEC 
oil price decision and the con- 
seqaent weakness of the dollar. 

Rises were common through- 
out the list with the market 
stimulated by good selective bay- 
ing, first from Johannesburg, 
then from Europe and in the 
latter part of the day from the 
U.S. The Gold Mines Index rose 
3.0 to 133.7 and the ex-premium 
index advanced 3.7 to 98.5. ' 

Although' prices finished 
slightly beneath their best Vaal 
Reefs rose } to £12 and West 
Dries were i higher at £20|. 

The steadiness of Golds showed 
through among South African 
Financials where Anglo 
American were 1 harder at 286p. 

Land cost rises 

The cost of agricultural land 
In Lincolnshire has risen -by 
36 per cent during the last 12 
months, according to William 
Brown and Son, Sleaford estate 
agents, in their annual report 


Tst Houses Forte 2Sp 

Closing ' Change ; 
price (p) .--oh day= v 
. :49ft ; *•..•>• 

828 '. , 

' :”48pm> - —19-- -■ 


-112 ■ 
340 -. e- 6 :; 
•253 'l--T.- •2^. -- 

612 V . - 3 ■: 

' 201 

: 2I8 : *," - ^ • 

'..108 - . 
255 -^^- 3- ' 

" v r __ 

•iT -;.: ST ,> • '» 

954 - . - 729 V 
. 949. : ' 28S ' ■ 
.-70pm 48prc 


.'121 ; ’ 87 • . 

390 33ft, 

■ 269’. -7.2»> 

M2, i m ^ 
804 227 . ' 

;220 •- 581 
^15 ±63: 

. 166 . 



Colombia has submitted a; 
request to join the International 
Sugar Agreement next year re-, 
ports Reuter. 

But officials are said to be 
seeking a higher export quota 
than the 70,000 tonnes it was 
offered for this year. 

No decision oo Colomba's 
application to join, or negotia- 
tion of its basic export tonnage, 
is likely before next year. 

- ’ . OPTIONS' ’'•••.V'-’ 

DEALING DATES, /.-v .-..a double vas. arwmged 1 li 
•first Last Last For Provincial Lmmdrie&; : . : 

; : Deal- Deal- Dedara- Settle- . . ’ . ./ .V-.--’ 

tags ings tiqn. ..-_ment'- . V' - — ..l— . 

^Dec. 5 Dec. 18 3«ar. 8 Mar.^0 . - 'f'.v 

Dec. 19 Jan. 8 Mar. 22 A’pr. 3 prepe AlW PirT.'C - 
Jan. 9 Jan. 22 Apr. 5 Apr. 18 . f , 

. .For rate indications see end, of YESZSWAY i 
• Share Information Service 0 “ Down 

• . Money was givaa^fm; the' call siit&tti : 2 72 - 


YmmbAY ^ 

Jn London and Northern, Shaw , Corpns. Pom.^U pd 

Carpets, Blactoi^^aniCo^^d,. W. Sg 

. 1 - . — - imnnnns . • 1 

Talbex, English Property, /West- FDiahdai and Prop- -' 56 222 
land Aircraft, Barker and w---.-;. . /•*. . ” 

Dobson, British Land and Pro- \ - 48 . -33 

viorial Laundries. A put was Recant ’issum t .* 

{completed in Burnish Oil, while Totals zn ns 

• . t • ' : . ./ >. X ’ . s ■ 


846 1^46 




Exrcs&Cfosing Closing Closing Equity 

Option pricaj offer Vol. offer VcH. offer Vol. close 

These indices are the joint m w pfa t iMB of tte Fmandal TBiieSr flK kst^ite.of Actnries 

and the Faridty of Jtctaffies If- ■■ -f, s 

J*-’;# • 



Figures in pventheses show number of 
stocks per section 

1 CAPITAL GOODS (172) 1__ 

2 BuMng Materials (27) 

3 Contracting, Construction (ZB ) — 

4 Electricals (15) 

5 Engineering Contractors (14) 

6. Mechanical Englneertng(72} 

8 Metals and Metal Fornrtng(16) _ 

11. (DURABLEK53) 

12 U. Electronics, Radio, TV (16) 

13 Household Goods (12) 

14 'Motors and Dtoffautors (25) 



42 id r.l . '24/11; 48 I 45 .Aroeilffie HJdaf ! 44 I 

A SO. SO KP. ; — 7E j ►! ANiion.Uinin«6ft- 62 J — 14 

ASC1.2B F.P. I — 

' i arim'u w n 

100 Vnrulnp AS!.. 100 —2 

171 iHorrb Ourenirmii- 2<ju 176 

155 I F.I'.'IOII I 176 I 171 iHorris Quwtwvmv 20dl76 ...... 

39 F.l'. ■ S.'l j .»t i *"■» Queen l'J|. | 291® 

110 l F.P. ! — | lia I 11S !.\litirtLJ*li , n*li|*3Jr'H22 

21 (N0N-0URABLE).(17U 

22 Breweries (M) 

23 Wines and Spirits (6) 

24 Enter ta inme n t . Catering (17)- 

■25 Food Manufacturing (19k.. . - 

2b Foqd Retailing (15) — - 

.32 Newspapers, Pub fishing (12) 

33 PackaglngandP^jer (15)._ 

=34 Stores (40) i : 

35 Textiles (24) 

36 Tobaccos (3) 

37 Toys and Game (6) 


.42 Chemicals (19) 

43 P ha rm aceu tical Products (7) 

44 Office Eqtdpmeot (6) 

45 SWpphW(lO) 

46 Miscellaneous 

Ml 1 1 1 IB 




Slack will bo dated tram tho 17th to 
the 30th January. 1979. lor tb.c Drepara- 
tian o( Interest warrants payable on 31st 
January. 1979. . „ _ _ 

By Order or the Board. 

W. L. SPALDING. Secretary. 
Oecca House. 

9. Albert Embankment. 

London SE1 7SW. 

18th December. 197B. 


IAN MARSHALL. The doath Is announced 
o! Ian Marshall, the annua! general 

meeting verbatim reporter, on December 
14. 1978. Ian Marshall had a varied 
shorthand reporting career at ijw 
highest military and civil levels. He 
was a familiar figure at many annual 
general meetings reporting on behalf 
of the Financial Times. The Times, me 
Daily Telegraph, ate. 

£993,: r-l'. 
* . £10 
.ill • rF. 
UOOj* Ml 
UQfH- Ml 

; HID 
£97l 2 ■ F.P. 
97p! r.r. 

— • S9S,i «9la Audcwr lsml.1* 19&. 

i/l 15 i 113 tl 'L'»loe Vulley Water « lte«1 P. J*rt. 1E83. 
,11' LrJ ; K'l nflL>jr H.iuhl 1 ‘ST-IO 


62 Bartia<6)„ 

63 Discount Houses (10) 

64 Hire Purchase (5) 

65 Insurance (Ufe)(10) 

66 Insurance (Cotrawslte) (7); 
67’ Insurance Brokers (10) — L 

68 Merchant Banks (14) 

69 Property (31) 

.70 MisceftaneoiB 

|28;12 iipm Ug |>m .Findlay Ln» . Cma lied. Prf. 

6|<ni; S|nn{Hnlt)'Ji>wliU 1CJ Cnv. l : n*. La. 'BfLffl 

96n:>'ewiimn Arc. Prvl 

153*, 15 1 11 id Kent Water Prci. 1*4 

47 ■ kickn»ft»ir«>rlh A I jrbridpe U'luer 1% '85 
99|. 1 a».i tVasnope W;% 1'ref. 











460 ' F.P. 

17 i r.r. 

3aj iF.P. 
a t i F.P. 

I 8/12:12/1 : 

115.1226/1 1 
I 0. lli'Sl/12: 
29' 11' 6/1 

15/12 1211 . 
,15/12 12/1 [ 
: 3:1 9 2 
i 8(12'12il I 

55 \ Mil 
185 'F.l*. 

15:12 12‘1 . 
: 3;1 9,2 ' 


118/12: 15(1 

b6G (Beecham 

191a Uouliun rWm.j 

J72 Brewn iJ> 

71 Cappcr-Scill 

107 L’llfli.rl iCIwk.; - 

IW Uurun (D; 

2|ipiIF>*tor (Johor 

Lo 'M Jj.Hul.tinp. 

4fc). id'll cm! Dmt - 

12pm 1 Hi I tii irr 

210 ItitollitfliPlit 

67 Tern l'..n»ulak' 

6rnn|Ywfi Fine j 

818 1-6 
1913 ..... 
372 —4 


112 +1 
110 ...... 

2l;pm —Ij 



163 — I 
48pm — 10 

226' -3 

73 ...... 


is 20-yr. Red. Deb & Loans <151 66.iSfiT.46' 66. 13 

16 Investment Trust Prefs, (15) so ,96 13.72 so.sre 

17 Conti, and IndL Prefs. (20) 72.42 12.94 72.42 

-v*V r 

' *%• S^sdiy .jbecei^r^ 19. 1978 



J Attey Unit Tjtf, Cal • • Ulf ' **pM«bgn 


i Attnl TfaB*™, tmwf 


Friends’ Pwvrif. Unit Te. «#**-* 

Ptubam Eralj Owkfog '.- . .ftSOfiBOK 


EMt.&lML 0*v_ 

_ ICapiW 

SLT. Unit Mtougtts Ltd.* 

G.T. Cap. Inc Mr _; 


■ in com hnb 

m : mm 




— . . G.T^lnpanlCeiL_ 

-r. (0277)227300 

., . I+CJI ...... 


SortMHt rxMi 

= . = 

MecM&strSr -J — - : --. 

r • r 

Anderson Unit Trust .Muann Ltd. '. 
lSa. FffrSnUch Sl, EC3M6AA. .V.-.6239231, 

AmtmonU.T »J»-- .54ft-...-i ilO- 

Antfaacher Unit Mgmt, 1ft, JM* > 

1, Noble Si.. EC2V 7JA. • • --(TUBS LWfc 

UK. MontMyfiBri-^1® vj- ITS — 1 M2 
Arbathmit Ss^sfljes thL Ultri 
37;(Mwt> SCideMwECtR 10Y- ; C -236 5 281 

G. & A. Trust (aK*» 


c * a. 4 .... 

Gartmore Rind Managers* 

2 5L Km* A», EK» BfeP . " 01-2833531 

WJH8J.7ST. (AttJ~,Pfl.Z -. 

-ffiJita (riifbnyl IMtt TsLiaflA^tid. . 
STrtdniclitPt, au Jenny, EC2 (fl -5884111 




66*dtt Uoflfflfr - . 

TTLortonWail, ECZ . * '.01-5885620 


Nm1raugriW.JH.5.< . . 
fiririwsM Management Cs. Ltd. 
59Gresfauih Sheet, EC2P ZDS D3 -80b 4433 

■ Bmawi.Dee. 13: 

■ y 

_(tot»n. Unity.. 
£2a* iteTJa. 


Archway Unit TsL tetft LMLf (a)(c) 

, . Ji Units).. . 

-firadw*-. Ore. 15 . 


[town. Unto) [74.9 . - 

Guardian Royal Ex. UnR Mp- Ltd. 

R&yal Exchange, EC3P SOU - -03-6288011 
(og) GoanMa Tu. . ..(93.0 96 ft -lft 







1 1 



317. High MAORI. WC1V 7nL 

todays Unkofti Ltfl-V <D(cXg) 

Unicom HO. 252. Romford Rd, E7. 01-534 55*4 




prices at to*. 

8:SSSL _ . 

Da, Aeautc.; 

Dee. 29. 

Prrmrr UT ^ 
O-JC Fundi 
CaUX Retoirry _ 

Up.GrawUi Inc.. 

Can. Growth Act. 
IneoeieA Aawis 

Hfeb teM* FMdt 

^ " ?y i 


fiJW .'Cabot ,J — _ — ’.I '.*■*- I — - 

S.17 ■• Intematwnoi __| — —-4 — I — . 

>- e „■ . WdL wide Dec. 15 J “ I - . 

SKtor Fundi 


1 Extra Inc. | 

Cabot Prof J 


OU&HU.B k 


Btrisg. Brotbcrs A Co., lidLV CaKx) 
88.UAflttflSL.EC3- . 01-5882830 

M::.:r.[ Ut 

Heriatow Deaw*«r?0. -. 
Blihopsgate Pyugnssioc Mgnt Co.V 
g.bittiqstttt.ECZ. - 01-588 b260 

Bridge Fw>d Managers (a)tc) . 

Adi Hid, UagWUttnSL. EM. 01-6234951 

N. An. | 

CataS Am Sow 

Ease* Pnm» 

Japan Dec. 8 / 

ILAncr.0K.15 I 

Smaller Cat. ...... I 





KB Stone) Udt TsL HUjrvt ^ 

45 Beecft SL, EC2P 21X .. . 014268011 


lfi . lntdf? ta)(g> . 

- § 2? 15, ChfWophn- Street, ECJ2. ■ •* 01-2477243 

fit Mri.liw.Fnnd J29.4* SL iff'. l 750- 

-After sio. DMm- - ; 


Key Fond Managers Ltd. (aU|> 

tlSflim.- 25. Milk St, EC2VEJE. 

Key fi ' 

■rtbttfte Trust Management (a)(g> ISIIS^aw— 

‘-fcSSnw^ . -■ 





Key FbodintFd 

3.70 . 

■ KJdnwnrt Bmen Unit togtr# ; 

20, Feorinnil SL.E.C J. ' . 0X4238000 


mnfc:» * 

h YhLFB. Act. [4i;5 

L A C Unit Trust W aw ig ei nt* f 

' The Sbck Exchange, EC2M 1HP, 

ffl-ilfiffllfeiidlft 7 . 

&' Lawson Secs. Ltd.¥ (a}(c 

the British Life Offke Ltd* (a) 

Rettu Tunbridge Wetts, KL 089222271 

Lawsmt Secs. LM.V ta)(c) 
37, toon's SL, London EWR1BY. 
LRaM. Materiah.,— I' 



Dec. 13. Nntdnto 
Jrw» SWptey A Co. Ud-T 

Mbgisr^aiMfen CL, ECZ- 



ScbMc ftaatc til i 

01-6008520 ' 

•rj li*-.' 

Legal & Gettsnd TyitdaS Fond? ' - • 
18- CdnynOeJBat BHari. ' 027232241, 

Jamary L 

Uonlpe Adrrtinkttttidti Ltd. 

2, Dote SL, London W1M6JP. 

LmOsL W.9 . 8L| 

LeoACCUTL. (843 • • 88J 

Udyds Blu Unit TsL Mngrs. Ud-tf U) 


tfS 4 4^‘ 

.tesfes^w- '.“•'M 

CanMhi'LKe Utdt'TrsL Magri- Ltd.'Fr . 
24Hlob St, Potters Bar, Wats. -.-P. BarSUZZ’ 
* -teipw — i-is-B :•■ 

Oft1._ r 

Da. Itc-Accam. „_|453 ; 

Cipri (Janes) MagL Ud.# 
100, OM Broad SL, EC2H IBQl. 




L ^ 

Waridudde Gwth. 

Do. lACtumJ — . — 

W^7 9 


Extra (name 

Do. (Aaum.) — 

1173 12 

fH -' h 7 





Uejtfs Life Unit TsL Mngn. Ltd. . . 
72-80, datefttBe At, Aytesbwy. 02965941 

EcpHyXccnv [lUa 17171 — I 473 . 

deaUds cbtt Dec.' 2(2 

GwtW Unit Fd. Mgra. tttf (a)(C) 
"bBfeuni Home, NMacUMpn-iyc '. _. 21165 

M 64 GrinttV (yXcXx) 

.-TJweQnwv Tower HIK.EC3RMQ ' 

See riso StBdr.Exdanw 

— Gt; 




•Is, Moirgale, London 

■ 1 W&I 

TAaritte* WfibW UrtesL 

01-638 4121 .Mann. UnttX 
ft. Fd*..., . ;.! CAcCara. UrHi). 

CAcOfln. Units)- 

77 London Vtt8,EC2N’ 108- 

to Reo- oiSte. ■ . . Ub1 * 5 ^ 

ftr Chlriwtease JsgM wr Jamet Ftoriy . 




». ■ ? i . -'. 

- T 

" 5 .S 


; .CWtRa&T -T«st Managers LbfT (a)(g) 
a«ewSCEC2M4TP. .03^032632 

».■ ..S3 +8.11 7, 

CtwfedorxtaioTtm* MgL LW-F ta> ' 

SO^CteSory LMe, MC2A 1HE. . .. 01-2420382 

A«NttFML^^|465 48.91 4 4J3 

CesmopoAtn-FBUd Manners 

3nmst^UnttvSWlkKJ. . 01-2358925- 

sasaeaif.- la^jiss 

C litowan t iMdt TsL ligrs. Ltd. : 

•»C ton- lane, EC2V6HH . - = -D7-606 9262 

H'StergS. ; ’ §:§ 

IMagtHigti inc.j49.4 • , SlTj 1, 4.00 

SpKtafced Fonfa 
Trustee . — - 

. (Accwft U 

Crescent Unit Tst. Mngrs. LUL (aWg) 

4,MM«dCreL l EAriunh3. 031-2264931 

‘ -t&bzzm ; HI :: 

Dec. 32 


Manulife Mtaagement Ltd. 
SL George's Way, Stneoage- 


Growth Units _ — ___|562 5921 -—I 9^1. 

Mayflower Management Co. Ltd. - 
144ft Gresham St, EC2V 7AU. 014068099: 


tf-Bsaf- wi 

M e rcury Fund Itottt 
■ 30, Gresham SL, EC2P2E1 


..Men. UBiBK, .13__g7 2 

.7 ; 

■9 . - 

a . 

cm. T«*yo^_; :t2AB . 

" Tfl-63B4485. , — SL, EC2P2EB. 

•Hs-fnc Dec. 8 P78.4 19034 --1 L99- . .ffiTSIfKrfSrESi ■ 

E. F. Winchester Fund MogL Ltd. 

OH Jewry; EC2r ■"- 


Eonon A Dntfley TsL MngraM- LhL Mtdtand Bank Brottt 

ftasSSK2&'-- ; «£T?® •* T “* “*■*“’ • 

Far E4uKas Securities Lid. ' . 
see Ahbay UMt Tiurt tthgn. 

Equity A . Liw Un.' Tr.-gr.y (a)(b)(c) . - 

Anrenttdi W,HlgtiW!rcgrnbe. . 049433377 gijjW*"' — 

.EquflyALnr .J65.9 . .6931 -L? 439 DoAccnrir-":' - 

James Finlay Unit Trust MngL Ltd. . 

J044, West NUe StreeL GJajgcW. (MI-2W 1321 


. ISM1SS: ^ ^ »-=«« 


£. Acqnw. .. 

Do. Accwn.. 

Pricei Dec. 33. wot deato 8K-. za 

.~. town 1 , ...„ — |0fcJ 
Jap«i*»clfle..-J-. g| 

puce* at beirfi. H«rt twins 8«- “■ 

CORAL INDEX; Close 471-47& 


■^firotHa^'Growth “ ^75% 

1 .1 * 

tVSWBftgn Gu»an teal _ 

^uaiaiiBHi w--»Hw«ii..-™ — _ 

'■ .tAddrts sttyrp .iyder' hgaymee ari Pfflperty Bond Tw»- 

Minster Fund Managers Ltd. 

Mhmer Hce, Arthur 51. EC4, 014251050 

ess BfclfcdK'' »STtt 

MU Unit Trust Mirgmnt Ltd. 

OWOiiBeu Sum, SWl A 9JH. 01-9307333 

MLAUnfe 146.9 4931 | 3.85 

Murray Johnstone U.T. Mgnt.V (a) 

163. Hone Street, GUqcm, G22UH. 041-221 5521 

HJEuwoesn [79.9 B5J| | 3U 

Dwtlnfl Oar Fritty- 

Mutual Unit Tn»t MaaagersV fa)(g) 
15 .Cm«uH Atf, EUR 70 U. 0140b 4803 

MuSS eSif Chtol:_'p3'.5 

Mutuaf High tbL ;.pb 5 

National and Commercial 
31. Si. Andrew Sqarre, Edlnborph. 031-5569151 


National Fmtdetrt In*. Mngn. LU-9 

48, Gracecltordi Si, EC3P3HH. 01-6234200 

Provincial Life In*, Co. Ltd.y 

222, BrJxmvjae, ECZ. 01-247 6533 

PnriHKUnih ^ $ 

h.„ M2 

High loconK- ..-.. -111 

Save & Prosper continued 

Scelfttts SeCUrtllM Ltd? 

Prudl. Portfolio Mngrs. LttLV CaNbKc> 

Holbom Bare, EC1N ZNH . 01-405 9222 

Prudctflul 1127.5 335^| -LOI 4.79 





S:o* Ei.rm-. 

17. Z 40W-7.4] 4.03 

!3I4 WJ -Cri 7e2 

rip 6JM-C.S 4 53 

1253 a 765 rS ] 2.4b 

!75 8 IM I at) 732 

Target Tst. Mgra. (Scotland) (a) (b) 

19. At hot Cre-Atw, Erin 3, 031^229 WUr* 

T,w»rt^Amer.Ej9W236 25 « *021 L* 

t.inirl Thistle -J40 7 43 9 — 03y L© 

Ejta IncoTOFd (59.9 M.4| -0.4| 9.97 

•^Ace Jt Pei :S.' fte»! jus ' ia* Vri' i? 1 ’. 

Schleslngcr Trait Mngn. Ltd. lai (r) 

BuUter Management Co. Ltd.? 
Tl»SU.E.uuiM*.EC2NlliP. 01-6004177 

BU: LSI tit 

jUfl, South jiree". Outri-tg. 

Am. EirtTfl" *2- S' 



Trades Union Unit TsL ManxgenV 

300. w«w street, E C 2. 01-6288011 

TUOTPetl 1505 53SJ-..I 534 


Am Smeller Co>, . 

-.rtnVL H«n rid . 

27 U . 

28 2 
2b 7 

aa-Mfe mj3 


%rM b »% 

Reliance Unit Mgn- *-td.w 

RHUanc* Hie , TunhrtAw Wrtli, JU. 0B9Z2Z271 


EnencuMt* Lars..— i2li 5 

Ertra Inc Ta ’ 

Income mo. _pib 

luc.Kr- View. 

IntnL tnwii 

in. in 

Ridgefield Management Ltd. 

38-40, Kennedy St., ManJmter 061-236 8521 
acfyofyu Inf. UT V9n ... ./ 287 



RUgeUeia lcico«rw_-|92 96ift ! . 1 V.9D 

Rothschild Asset Management (g> 

72-80, Gatenouv Rd., Aytesbury 02965941 

N P I Gjh I1i> T« 147 fl IIIM I a Ml K-m nu., nimw> 

E»sSS=:|l, 38 ;::: II K-arttrfcr|lB 4 ,iBS 

- - NdM Hor. li. 

'Price* ta Nov/L MmI tttrihg 
Natloiurf Westminster* M 
161. Cugalde, EC2V6EU. 

FIiUkUI .M2 

Nic. Ml. Fa. (taii 
N.C. Smllr Cojn rd.n. 

:i E& ■ it?: 

3 50 



... 1 el traam I 

SSSSti^Ps.ri. i 

u[k. Grtn. )_ 

U.K- Gitfi. Dia ... .119 5 

J. Henry Schroder Wagg & 
120, CbeajBiO. E.GX. 

Capital Oec. 12 ... [M37 

(ACCUTJ^. ■tazrP 7 



Transatlantic and Sen. Secs. Co.P 
91 -79 New Lnratoo Rd. Chebnsfonl 024551651 

. Bartncaa Dec. 14 


lAccurri. Units.). '._'.|il70 
.Bart E«Pt llw 29...| 





Ira 1 

3 59 
5 OB 

4 66 

B-Ctctvn Dk 14 799 

(Accum Uinnl JJfO b 

baism Der 15* m.7_ 

(Acorn Unts) .1 157 6" 

QimbJ D« 13 [ 

^ccirn^Uiuts) &83 

' Dee 12 ..53 7 

(Aomm. Units), tU.S 

Marttora Dec. 12. _ 

l a 

14? Z 


Growth in 



01-6066060. Rothschild A Lowndes Mgmt. (a) 

SLSWhtHnUW.Ldn.EC4. D:*2b435b 

New C'L E tempt. JL1Z2.0 129.01 -.] 329 

■'i. CTilea dnlug Dec. 15. 

4 43 

tAccum. Units). 1155 



Prices on Not. 



KL Trust Managers tMLf (a)( 9 ) 

MHton Court, Dorking, Surrey. 

N^ttur M & i«!^-i§U 
Norwich Uattn lostmnce Group (b> 

PO 8o»4. Monnch, NR13NC. 060322200 

Group Td. Ffl. B6U 38fl.U ~4J| 5.43 

Peart Trust Managers Ltd. (aKg)(z) 

253. High HoRionv WC1V7.EB. 01-4058441 

Men dnluq Dec. 

Rowan Unit Trust Mngt. Ltd.V (a) 

City Gate Her., Flncbury Sq., ECZ. 01*061066 


WSy^ 4 - 

Vara^'M DK- 13— (453 

< Ar cum UiM'-J M7 4 

Wicker Dec. 14 §2.1 

1-T> 1 

(Accum. Units) — |T4 9 

WlclfDn.Dec.15 §71 

D& Acorn. 1788 _ 

Tyndall Managers LtcLf 

28, Cany-ise Road, Brittol. 

American Dec. 1 4 „ . 
SecuriUKDet. 1Z..._ 

(AmmL Unity 

Mertlri OK. 13 

(Acorn. Units) 

4 OR 
B 95 
8 95 

Pearl Growth Fd. — _i 



(AcCun, | 

Royal Tst. Can. Fd. Mgra. Ltd. 

54, Jermyn Sheet; S.Wl. 01-629E252 

fiwwFov:”“::::rp7 * MHJJ 

*1 Detenfljer 15. Nnl dealing Detcnirr 29. 

Pries 1 




Sava & Prosper Croup 

4, Great St. Heftm, London EC3P 3EP 

Pelican Units Admin. Ltd. <fi)tx> 

81, Foiiubln-SL, Mondmder 061^36 5685 

pelican UriU JB&3 9Z.8J -OJJ 4 85 ' 

Perpetual Unit Trust MngmLT (a) 

48, Hart St, HflOfer on Thames 049126868 

P'pciualGtcGUL [43 2 4fift 197 

Piccaddly Unit Trust M(b) - 

1 1 

68-73 Queen 5i ' Edmborqh EH2 4NX 
Deatlihr. 10. 01-554 8999 or 031-226 7351 

Save A Prosper Securities LtiLIf 

I Mer national Funds 

Univ. Growth ,|6JD 

tacmslne Ikmr Fond 
Hmn-YWil.....^ [5)6 

D«. 5... .120 3 4 
. “For ui nrra Funth, wit 
5 cattish Equitable Fnd. Mgra. Ltd.* ' 
2SSL Ant***-. Sq. Edinburgh 03 1-5 5b 9101 

■ Income Units- . - 157 3 54 U ,....[ 5J4 

AOWn-Unto. . ._.|5‘»4 bl.zj J £.34 

Dealing day Wethestt}. 

Sebag Unit TsL Managers Ltd-V (a) 

PO 8» 511. Bd Ibry H-* , E.C.4. 01-236 5000 

!X»Q CaoUri FH 134 2 35 m -0 ri 4 S4 

Setug Income Fd. — |)I | 513 -o ;| 8.48 

Security Sttection Ltd. 

15-19. LHeoln"* ■mi nelrh. WC2.. 01-831 69Jb-9 

Uiwt Gth Tsl A« .. _ |:4 7 ■ 301 1 4.fa0 

.UnHGlhtKlnc |21!l 22 4^ ,...| 4.W 

Stewart Unit TsL Managers Ltd. (a> 

45 CfurtaneSo . Eomthirgh, 031-226 3271' 
1 S tewa rt American Fund 

Standard Unit! ISB S 

Arcmti units .. 

Witttrawai Units .- [4; 3 
- -Slnort OrttWi Caullal Fund 

Sumdani l-su 2 . 1&4 a ... I- 4 00 

Auum. Units . .. .J163.2 i79.a....l 4.0O ' 

Drannq rTui!.- 1 . F,i. -Wild. 

-Son Alliance Fund MngL Ltd. 

Son Alliance Hir.. HorJi >-n. 040364141 

lnammDec.5 , 


(Acam UnrtsJ 

ETFnmLDec. 13 

( Acritfn Unbsj 
nL Ear Ok. 13 

1996 . 


» = 





t-’J I 150 

*7 7f . ...I 1.48 

MM -1 - 

[Atxum. Unis) 

P ref. Dec 13 

(Accum. Units) 


Scot. Inc. Dec. )3 — 

Sent Can. Dk.13 

(Aiums. Units) | 

London MM Group 

Capital Growth BBS. 

Do Accum. J3.7 • 

Ertra Inc. Growth 384. 

Do Ac cum 16-5 

FmancUl Pr’rty-. 16.1 

Do facut*. ... 19.9 

Hrjti IK Priority |5jLb 




Inte rrallOiial j|7 J 

Special Sits-.. 


Small cS?fS" . 


Prl rate Fund 35.4 

d“H A 

318 -P.! 

43.3 -0.' 
■46.7 -0. 

46.4 -06 


a 4 -1.4 
6 -0.E 


3 JO. 

iaei£ - 

American Fima pl.4 

Practical Invest Co. LbLF (yj(c) 

44, BMomsbuty Sa, WC1A 2RA 01-6238893 

Practical Dec. 13 [157.4 I6L9 ( 442 

Aetum-UnKs E19.7 • 233i] | 4.42 

lacDmr Funds „ 

iiqh Return —..167 2 

Income M2.7 

U.lC Futds 

UKOynly |44J 

Qnnos Funds! 1 1 
Eimve [85 7 


57M-0.4, 7.55 3S|- Ys! ifl 

’723 -D4j 
45 91 -0 5| 

-4701-0.61 5.18 

Target Tst. Mngrs. Ltd.? fa) <g> 

31, GrthJum St, EC? DmIIimi: 0296 5941 ' 

TSB Unit Trusts (y> 

21. Ctonby way. JUutortf, HantL 

i«toSS5a^ ll WU a 

P} I TSBlS w _l - ;gB 637- =8J TbJ 

u 3 1" 

Target Commodity ... W 4 
Tarnet Fmanwil — Li) 0 

U.S - 

I (ntenat (MI 4 

r PJ2 

■ftSfiflfc: s- 

pDa. Act. Units 

Target GUI Fund. 

JwmnsdltTff. [75.2 -• 8H 8) *-0J{ 

fSS^sssrz ilfii 7ii| 

Mgh-Mtaiow Funds 

Select Internal. 

Select Income. 


Do. Rein*. Units 


•Targrt In* .... 

TgL Pr. Dec. 13 

Tgt. Inc - 

TqL Special Sits 

(b) Do. Accum (39 5 

Ulster BanMP (a) 

Warinj Street Belfast. * 023235231 

(D)Ulrier Growtn p8.0 40ft I SJO 

Unit Trust Account A MgnaL Ltd. 
nn7 wnr,ani St EC4R 9AR 01-623 4951 

Friars H*. Fund 140.4 - - 4241 -rOri ' 4. 

Wider Grdt. Fnd. D0 9 3i6l ,...71 4.i 

Da. Accum. -06.8 

Wieler Growth Fuad 

Klrq William SL EC4R9AR 

Income Urns [309 

Accum. Uotts 


I 4.67 


Abbey Life Assurance Co. Ltd. ' 

1-3 SL Pairs Cbotchyard. EC4. 01-7439111 

■ ;af=Bt. .a 


Selective Fund 

le Faint—.. 

Crown Life Afcorance Co. Ltd.V 

Own L if Hve . WetM*, GU2l 1XW D4862 SOU 

♦Equity Fd.Ser.4_i 
♦Com Fd. 


Mmq'dFurd Acc 

Mang'dFd. Incra 

MaiM'd Fd. Inlt . 

Equllr Fd. Acc. [93.0 

Etplty Fd. Incm. fit.} li 

toity FiLiim wi . 11 

Property Fd.Arc f96 5 . ll 

Prooerty Fd. Incm .. 196 5 


Inv. Tst. Fd. incm. [J8 4 

Inv. Tsl. Fd. 

. InH. 

Vabotkn normally Toes. 

FliedTiLFiI. Acc.„nOOJ 

Albany Life Assurance Co. Ltd. 

31. Old Boriington St, W.l. 01-437 5962 

t Fd. Acc. |19 

♦fined I nt. Aa. 

♦Gld.MorwyFdJlc. .- 



Pen-Acc — ._ 

GTd.Mon.Pen. Ac 


F»d Int Fd Incm. 

inter' I. Fd. Acc 108.1 

Inter 'I Fd. lnan. 108.1 

Money Fd. A£C. 9B.2 

Crown Brt. Im.'A' H59 2 

I* : 

• lll7.H-0.5l 860 

107 ffl 
103 1 
Til 3 









-0 6 ) 
* 0.1 





Uoyds Life Assurance 
20. Clifton St.. EC24 AUX 

MUlGl He*. 30. 
Op 5‘A'Pr Dec 14 
OpJ'A'EOL Drc 14 


i.isooe 15) 6 
134 9 1421 

1559 1M.2 

153 T - Ifcli 

,124 2 130ft 

London Indemnity Ci GrJ. .Ins. Co. Ltd 
18-20, The Forburv. Peadiny 56351 L 

iJ'A'Hj.Dk. 14 

55-A , . 

1 5‘A'Dpt.Dec.]4 . 

Royal Insurance Group 
New full Place, Lneroool. - 051-2774422. 

Royal Shield Fd 11473 155J| _... ! — 

Save 6 Prosper GroupV 
4, GtSl Hetefl’t/Ltrim. EC3P3EP. 01-5548099 

EaJ.liw. FiL 
Property Fd * „ 

Gilt Fd 

- Detroit rdt 

646 M'ST'FlesiSe^'-" ip? IK 

6.56- Fued Interest. _ ... M 1 ' 36J 

t,q - The London- A Manchester Ass. fip.9 



7 23 Cra.G 
— AFln. 
10.00 6E*eir 


Crusader insurance Ca. Ltd. 

- Vinada House, Tower PI, EC3. 01-6268031 

GUlPidp. Dec. 5 — 174.4 84.2] | - 

Eagle Star Insnr/Mldhmd Assur. 
■l.TtMdMxiteSL.ECZ. 01-5881212 

EAgle/MId UnMs — 1533 55.5| -1 a 6.17 

Equity A Law Life Ass. Soc. Ltd-V 

115 0 


WhKiode Part, Einer. 

1. Growtn Fund.. 

Eiwcl Fd . 

ns. fii 

-Fleidile Fund 

Iny.TnwFimd . .. 

Property ruM 

. GldDmpdt Fd.. . . 

MAG GraupW 
Three Oonys, Tower Hill, EC3R66Q. 01-6254568. 

Cvnr.Pbns.Fd f ... 

1 EquiwPBS Fd 186.1 

Prcp.Pm? Fd ■ 236 2 

' GiH Pent. Fd. H 95 2 

DepnU’ent Fd t .[1028 „ 

• • -Prices oc.Drtmter 5, 

) Weekly UnIIiisl 

-'Schroder Life Groapf^.- 
Enierprfte House, Portsmouth.' 



71 +0.1' 

AmericinF&Bd' — 

Cam. Dt0OM , „ 





EjrTiefclfd.Bd.- teTl 

AMEV Life Assurance LhLy 
Alma h w, Abra Rd, Relgate. Rdgate 40101 

Amenlnni Road, High Wycombe 



AliCV Uwl-R' 

AMEV Eodtt ^d— — R 
AMEV Fixed Ira. — 
AMEV Prop. Fd—. 
AMEV Mod PetLFd. 



InL Growth. 

„ Mind 


Family 81-85- * 

Gill Bond***. 

FntenutfnL Bond” ... 

FlndiraeredF — - 


Pen. Pwwlon***-.... 

801[ -2.4[ — 

General Portfolio Life Ins. C. Ud-V 
60 Barthofcxaew Ct, Wattham Cross. WX31971 

Portfolio Fun) ] 144.9 

Portfolio Umag 
PTollo. F*d. 

.Gresham Life Ass. Soc. Ltd. 

2 Prince ot Wats foL,B''inulli. • 

Property Bo.** 

Recowry fd 8d*-- 




195 6 



59 4 










■ Fixed lnL4 

Managed 4 

Mnhey4 _ 


PrOpCTi!' 4.. 

K&SGM Sets. 4. ' . 

B.S. Pee to 8 ..fi23.1 

B S. Pen. Acc. B IlM.l 

MngdPen Cap. 3. ..12126' 



64.9 - ‘ 


Mn^dPeit. Ate. B _ [256.7 

Int Pea. Cap. BI9b.l 
F. Int Pen. Ac L BftB 

BAoney Pen. Cap. B— 
Money Pen. Act B_ 

Prop, pen Can. B 

Proo. Pen. Acc. B. 



1 V"" 


716 B 



77fl 4 






■— 1 


runtnq uu, wbhiimii vrwnu wajjtj a 

SStEte”“ia|-zJ = 

’’Pntes di’Dec. ti. •'Dee. 14. ••’Dec 
Merchant (nvesiors Assurance^ 

Leon Hse . 233 High St, Croydon. 01-6869171. 



For Arrow Uh Astnranca «t 
Ptwifoxt Capital Life Assaronce 

Barclays Life Assur. CtL Ltd. 


tto toto o w 

01-534 5544 

114 S 




„ MU .... 

V. m 

J 1023 .... 


14.0. 1093 

\092 1043 

■Current utlts uhra Dec. 18. 

Mrr = 

&tlSir. F S&:— Ite.? SB ::::.] =.. 

Growth A Soc. Life Ass. Soc. Ltd-f 
Wrtr Bant, Bray-on-Thamrs, Berts. ■ 0628-34284 
Flexible Finance...... | 11063 I....J - 

^Ffch^H 3 = • 

Guardian Royal Exchange 

Royal Exchange, E.C 3. 01-2837107 

Property Bants 097.0 ZDift — I . — 

Hambro Life Assurance Limited^ 



Drt*St Pein."."_.!Zl" 

Managed — 

Manned Pens. 

, Ml. Equity 

Do. Pens 

Inti. Managed 

Do. Pern ... 

NEL Pensions Ltd. 


Scottish Widows* Group 
Pato ^Edinburgh EH165B0. 


1 LH_lnc._Prc.6_._. 

— Mag. Pro Dec 


7 Oh) Park Lane, London, WL 

fFlxed lid. Oep 

Edurty. IlM.b 

Property... IZ7Z.9 



Managed Cap 


Beehive' Life Assur. Co. Ud.V 

71, LoraDanl SL, EC3. - 01-6231288 ' 

BOL Horse Dec. 1 | • 13233 i .....J - 

IH Edged — 

. jnCrtaui Acc 
Pen.FI.Dep.Cap. — 
Pcn.F.I.Dep-Acc. — 


Life Assurance Co. 

SL. Powers Bar. Herts. 

Pen. Prop. Cap. 

o. Acc- 

S8£®Si=:l &l 

P.Bw 51122 

Cayman Assurance LfaLV 
X OlnWIe Wy, Wenttey H A9 ORB. 
EMfUito — 

in [ao.51 

tflUS — 

to. Prop,. 

Pen. Man. Cap- — — 
Pen. Man. “ 



Pen. B.S. Cap. ....,_ J 

Pen. B.S. Aa Z — 

Pen. DJLF.Cap. 

Pen. DA. F. Acc.. 

Milton Cowl, Owing, Surrey. 

Nelcx Eq. Cap ,181 8 86.11 . .. - 

NeMx Eq. Accum. ._.(ll98 126.1 -rilft 

Nek* Money Ctp.._..n2.5 65.7 . 

Nelex Mon. AccJ67.4 71 4 

Nnkr Glh Inc Cap — 149.4 , 521 

Nele<Gth IncAcc — pl.5 . • M2 
■ Me' lUhnL Fd. Cap. — k?.6 52-2 

hel Mid. FA Acc. ._pl3 H D 
Net S uh d2y ChKemher 
NPI Pensions Management Ltd. 

4B Gracechurch SL, EC3P 3HH. 01-6234200 
Managed Fund.. [157.6 1M.3 .. | — 

Solar Cash P...- 1102,4 

Solar Kill. P — r 

SoJar Life Assurance Limited 
■10712, Ely Mace, London, EC1N 6tT. 01-2422905 

Solar Managed S 1280 * " 

Solar Property 5 ... 111.4 

Solar Equity S 170.5 

Solar Fid. fix. S 115 5 

Safor.Cam S 1028 

Solar InU.S 86 b 

Solar Managed P . ... 127.5 
■ Solar Property P._._ 1113 

Solar Equity P :... 169 8 

Soto- F«1 Int. P U?4 

Lft-04 - 





Isfi' w 

Son Alliance Fund MangmL Ltd. 

Suit Alliance House. Horsham. 040364143 
Exp .Fd.lnt.Dro 13._.|tl48!_ 159.91 — J - 
lnC.Sn. Oec. 12 J 112W / 4 — 

Sun Alliance Linked Life Ins*. Ltd. 

Price-, Dec. 1 Nert dealing Jan 2 

' (UKJ Lid.? 

New Zealand Ins. Co. 

Maitland House. Southend 551 ZJS 0702 62955 
Krwt Key In*. Plan ._B52J 157.5) 

Small Co s FA @98 : 105 S 

Sun AH lance House. Horsham. . 


- laaaa 1 — #’• 

_ -E-Ira Inc.Disl. Fd._ 1D02 

• American Fd. 

2nd (SHr'PeSAS^I 9 


Current vabe December 15. 

Hearts uf Oak Benefit Society 

35-17. Taebcocfc Place. WQH9SM 01-3875020 

Hearts of Oafc P7J5 - 34.9J ._.J - 

Hifl Samuel LHe Assur. Ltd.? 

F.T East Fd p093 

Gilt Edged FA fg&O 

Con. Deposit Fd _.@8.B 

Norwich Union tosurance Grauji? 

PO Bor 9, Norwich NR1 3NC. D60322200 

1144 ... 

100 0 .... 
105 5 
983 . .. 

m ...... 


.Property Fuad. 116' 

international FA 93.7 

Deposit Fund 992^ 

Managed Fund 1093 




l(£i _ 

- NLA Twr v Adcfecembe RA. Cray. 01-686 4355 

Manaoed . — . 

Managed Serin A.. J 

Managed Series C 

Monty UiUts 

AVoitry series A 

Fixed I ~ 

^Cayfital'Llfe Assurance? 

Coabton House, CttpeiA^iW 1 ton. 0902 38S11 

es&fed V£ l:d = 

fix. Ser. A 


Pro. Managed Act— ' 

Pry,. (Itrrd . Q*J. 

Pens. EoullyCao — .. 

Pens EtotyAa 



Peiij. Prop. Cap _ 
Pm. Prop. Acc - 

Managed Fend.. 

EuultyFund. ..... 

Property Fund 

Fl*ed InL Fund 

Deposit Fund 

Nor. Unit Dec. 15 — , 
Pearl Assurance 

Chttterfaane Magna Gp.? 

SSet** Br |l,B * , CwB *'» B* KeM, 3^jg^yju2 

_ . Equity 

Imperial Life Ass. Co. of Canada 

imperial House, Guildford. 1 

Grt.Fd.Dec.15. [75.4 

Pau.FA Ode. l5__.|w.7 757 

Uot Linked PortFtflo 

ManugedFund _99l 

FlwdlnLFA.. iWS.4 . 

Secure Cap. FA PH.4 

Fund 199.7 




I Unit Funds) 

252. High Hoiborn, WE1V7EB. 

Managed Fund 1153 ■ 121 

tony Fund 119.8 _ 126. 

Property Dirt. U15 • 318. 

Property Anum ..fEzSS ■ 133 

Phoenix Assurance Co. Ltd. 

4-5 King Wifllam SL, EC4P4HR. 

Weallh to. [U23 

Ehf. Ph Ass 1 . 78-6 

EbV.Ph.Sq-E [75.1 

Prop. Equity & Life Ass. Ca.? 

119 Crawford Street. W1H2AS. 01-4860857 

A Silk Prop. BA J Iflfc.9. f 

Du. Equity Bd. .1 74 7 ....I 

Fie. Money Bd J 149.6 | . . ) 

Property Growth Assur. Co. Ud.9 
Leon House. Croydon CR9 3 LU. 01-680 0606 

Sun Life of Canada (UK) Ltd. 

2. 3, 4, Coctopur SL, SW1V 5BH 01-930 5400 

Masle U. Grth I . 205.9 i 

Ktf:Kd - SI 

Pennl PnTi | 2W8 • I 

Target Life Assurance Co. Ltd. . 

S3? "“*■ 1159.1 

rAar. Fund Inc [97.9 • 1WJ 

Man. Fund Act. [121.1 1|73 

Prop. F A Inc 12B.7 .. _124.9 

Prop. Fd ACC ,..153.0 . 

Prop. FA Im 117.0 

Flirt Ira. Fd. Inc 101 1 

Den.Fd Inc W.S 


. Plan Ac. Pen— 

Ret PfonCap Pen. 
O.Fd. ' 


to .1128 1 

.. -Ji.Pen.FACap 

Wit Pcn.FtLto &34-0 


□ ^ = 

GHI PmFA &9>. |Jg.7 

Prop.PBn.Fdto. ...._ 
Proo. Pen. Fd Cap. — 1617 

Guar. Pen Fd.Acc 97.7 

Guar. Pen Fd Cap. 967 ’ 

DAPen.FAto. 97.4 

DAPen-FdXap 96 o 


_ T ran wnternationaJ Life (os. Co. Lid. 

— 2 Bream Bldgs., EC4 INV. 

♦Tuffo Invest; FA — MJ2 

♦Tulip Mangd. Fd^.„^, 
VMan fionuFd [jZt.l 

Property Fund..... 


Abbey ^ Fd. (A).„ 
Invert me« Fund. 

City. Of Westmi n ster Assur. Co. Ltd. 
RMsieod Horn*, 6 WhUehom Road 
CrrJikwCROZJ*. . 01-6849(64 

Fund 162.9 I 

md njb.7 I 

« M 



Money CflA- 

Money AccS, — [50. b 
__ Eqdtay Cap. &3.b 

^ t Mnew iiui gn riTL 

Pwfonji urats _| ■ £213 | __ 4 — 

CKy uf Westminster Aisar. SOc. Lid. 
Teleptane 014184 9664 

“ . n* w=d = 

Irish LHe Asurme Co. Ltd. 

■ 1L Fidsbwy Square, EC2. 

Blue Cbta Dec. 14 — 173-' 

Cp.SrTlTDec- 14., 

Managed Fur*i_ — 

Exenxrt. Man. FA — , 

Prop. Md. Dee. 3 1 

Prod Mod Gtn.. — 


.King & Sbaxtnn Ltd. . 

~ 52, CornMH, EC3. ' 01-623 5433 

Lttighani LHe- Assurance Co. Ltd. 

Latayrom Use. HeMrook Dr v NW4. I7M035ZU 

HarveSPian™ .— 198.1 
LanMum 'A' Plan — IbtA 69 

SrW “an'Fd'Pb 5 BO. 

Legal ft GiMnl fUntt Assur.) Ltd. 


Invert ment Fd(A)„ 


EuLIIV Fund (A) - — 

Mane* Fundi 

Money Fund (A) 

Actuarial Fund 

GIK-edoed Fund 

Gtff-Eiftwf Fd |A)._. 
WRebr* Annuity 

Immed ArwTj. — . 

rntpriutlanal Fd 

Prep. Growth Pnato* * Aaind tlg ( 

Ai.rwrwf Ac uis.n3g i 

♦All Weather Cap-, 

♦In*. Fd,Uts,..— 
Penuqni ‘ 

iFd. Ub 

Cow Pens- Fd. _ ..... 
Ciw. Pm. Cat. Ul 

Man. Pern. Fd 

Man. Pent. Cap. UL 
Prop. Fens. FA . — 
Prop. Pros Car Uts. 
SdW,5ot/Pw. UL 
Soc. Cap. Ul.., 

Man. Pen. Fd. ■■ jJHig 

Man. Pen.Fd. to . 

qtMngd. In. FA Int. .-[98.9 
♦Mngd. Irw. Fd. Acc_|99.9 


m=ui = ' 

Q7.4 -B.e — - 
IMi -1.1 — 

BU =ai =. ‘ 

105.ll -Oi — . 

— Trident Life Assurance Co. Ltd.V 

~ Rrosiade House, Gfoucester. 


W 7 * 


133 9- 
1366 ■ 
.137 1 

Eaui m .... 

■ U.K. EqMty Fwnl 

’ " ’ ’ eld 

GIU Edged 

• Money , 

International __J 

.Fiscal .... 

Growth Can- — . 

Growth Acc TUa.l 

Pern. MngA Cap U1S.Q 



Pem. Mrigd. Arc 

Pem.GW.Dep. Cap. 
P«e.«d ~ - 

Pern. PH , 

Pens. Pty. Au 

•TrouS? Bo5~lL 

■Cash valor 


in m 




3891 .... 

97.1 . .. 

for £100 premium. 

_ providence Capitol Idle Ass. Co. Ltd. 

30 U rtrldge Road W12 BPG. 


Equity Initial. 

CoBUperciai Union Group 
[fiL Helm’s, 1, UbdiershafL EC3. 01-2837500 


Do. Amm. 

Fined Initial 

rCettfedenAliM Life Insurance Co. 

50, Chancery Laab, WCZA 1HE. 01-2420282 

Do. Accum. — 

IAJ. Initial 

DA Accum. 

Managed Initial 

Do. Accum. 

Property Irttial.., 

Do Accum. 

Legji A fewial (1 

E kempt cash Intt. _ J 
Do. ' 



EcerM Flied InlL 
“ ■ Acoint. 

KtodrnT^ 1OI.7 


'Dd. Accum. ■ 

Ettmx Prop. InIL -.L.i- 
. Do.Acodn._-. |loL7 



Pension Equity 

PeovKffl F™. Int--. 

Deposit FA Cap 47.4 

Deposit Fd Acc. — *7.4 

Equity Fd. Cap. 46 J 

Equity Fd. to 463 

Fid. in. Cap. .... — 4731 

Fil Im. to — 47 8 

Intnl. CJP 45," 

Irani to 


01-749 9111 

Tyndefi Assanmce/PeiMieMf 
18. ttnrnge Rosa BriuoL 

3-Way Dec. 14 

Equity Dec. 14 

Bond Dec. 14 

Property Dec. 14 

DnodtOec 34 — 

3-Waj Pn.Wc. 14._ 

O'sejlql. Dec. 14 
. MaPn3-W Dec. 1_ 
Do. Eauty Dec. 1 — 

Do. Boro Dec. 1 - 

Do. Prop. Dec. 1 

0Z72 32241 






Vanbrugh Life Assurance 

41-43 Maddn SL, Lite. W1R9LA. ' 

— . Eoaftj Fd 

Provincial Life AssorUce CO. .Ltd- 

2 22 BhhBps««e, ECZ. 01-247 6533 

Irtnl. Fund.. .._ 
Fixed Intent Fd.. 

— 1 


+M ’ 

_ 1 Pro*. Managed FA.., 

__ pro* Cash Ft—.., 


Gilt Fund -. ... 

Property Fww ^ 


-Oft - 

COmWBjMuraoee Co. LhL 

te,ComWII;E.C3. 01-6265410 

- FAj” - 

Credit ft CoitNtwee insurance' 

1% Regent 51, London W1R5FE. ^01-4397001 

C4C Mojd’Fd-^. [12331 1^01^1 

Legal ft Ge n era l Prop: Fd. Mgrs. Ltd- . 
u, toett Victoria SL. EC4N4TP. 01-2489678 

Life. Assur. Co- of ■PfmtsjflWBta 
3944 Hew Bond SI,. W17 Orta - 01-4938395 

LACOP Units H-„|9fA • 3L(B7I -.'.J. — 

Uoydr Bk. Unit TiL.Hngrv>LhL ' 
71.LorabwdSL.EC3. • . - . 01-6231288 

Exempt I LIWJ • ' 1H.4J ,..4 7,81 


m-. & 


Prudential Pansioos Limited 

HcUBoro Ban, EClfl 2HH. 

EqnlL Fd MOV. 15 — B2S. 

prop FA OK- 18 — pJK' 

Reliance Mutual . 

TuncmJaeWethvfait. - * '' 0892 22271 

Bel. Prop- B* 1 £23.9 . 1 4 — . 

RothschM Asset Management ■ 

SL SuhhiiU Lane, London EC4. 01-626 4356 

6533 Vanbrugh P en s lot u Limit ed 
_ -*1-43 Maddn Sl, Ldo. W1R9LA 


Managed jlffll-9 307ft j — 

FfS^inttresiTJ’—P^ _ irjij — 

I Interest ^ . 

Property P0ff5 

Guvatted see 'Ins. Brae Rales' table. 
Welfare Insurance Cu. Ltd-f 
WfaeMUe Part, Exeter. 0392-52155 

Moneynuker FrL_ | 1055 1 4 — 

For otter funk please refer to The Li 
Manchester Grout. 

Windsor Life Assur. Co'. Ltd.' 

tonkin A* 

Royal Albert Hoe, Sheet SL, JMnhgr 68144 

TKTfiriBUBiH “ 

life In*. Plan* " 


Prt.A-nd Pem 

Flex, Inv. Growtn _1_| 

M -W 3AI 




Alexander Fund 
37. roe Nwre-Oume, LuxraMurg- 
Ale«w*rFunO. ...| SUS^9^I .— J 

Kejrser Uiltumt Ltd. 

25. Milk Strop;. EC2VBJE 
Fanselr* _.|Frl 377 

«K asset MkieOK. 32.’ : ’ ^Ay^Ccpi.V.i lnVHP ul 

nU0ASf9j!& “■MWw ^iShaiiun Murs. ‘ 

AHR GKt Edg.Fd (no 20 1023J .... | liW 1 Chm.iNCraB._St HrlkT.lrrtrr. 

Arbuthnot Securities (C.I.) Limited 
P.O. 8m 284, Si Hetfor. Jersey. 053472177 
Cap. Tsl I Jersey) 1116.0 120.B .....1 436 

w.«oS.‘aBr' ““nS-j noo 

E^. w . l t."iat- u 34“ iw iE,^.i 

Neil deiiag dale Oecendwr 28. 

AuatriBu Selection Fund NV 


UxUr* Hu .Si Pri->> Part. &ttk^ 

1 ThomatSuwi.OaiHUs I.D.M. _ 

Gdi Fund ( Jersey) ....T9 04 9.0 

C lit Trust Half! . H& 1 194 M 

Gill Fnd Guenim|934 917* 

IntL Gort. Seci. TfL 

First Sterling £18M 18351 | — 

Flrrt Inti UISO.W 142-4j[ i — 

Klehneort Benson Limited 

20. Fenc hunch St , EC3. ’ 01-623 8000 

ifc^fcrHfoemtuiuiies. c/a Irish Young A Oulhwoite, 

US$1 Sham , 505148^- J^.....l — 

Kent Si, Sydney 

K— _| 

Net asset value Nuvewber 
Baaft uf America International 5-A- 
35 Boulevard Royal. Uinrntiourg G.D. 

WhOraresl litnme _. KmUSSJ 116 J0[ I 7.32 

14. Next wb. day DK._33. _ 

Prices at Dec. 

...a sib, 1 

!'.9 D< +0.9" 8.KJ 

Eunmesl. Lu*. F. 

Guernsey Inc ... 

Do. toum . . . — — 

KB Far East Fd — 

KB Inti Fund 

KB Japan Fund - 

KLS.tTS.GwUi. Fd... 

SfoHPt Bermuda 

imerntJ. 9d. Fd 

63 5 1 *67.481 
74?- . 84 4 

S4IKJ4 15 



Banqtie Bruxelles Lambert 
2. Roe De la Reoroce B 1000 Brusseli 

Renta Fund LF [7.897 1,956| +2J 

Barclays Unicorn Int. (Ch. IsJ Ltd 
1, Charing Croti, SL Hefcer. Jsy. 0534 73741 

Overseas Income [47D 4941 . — .1 1Z.M 

ttaKBSzrfitairad tit 

Lloyds Bk. (C.l.) U/T Mgra. 

P 0. Bo* 195. St. HelHer. Jersey. 

Lloyds Tst. O seas . . |55 1 58ft +Z.4| 

Men dealing due January 15. 

Ltoyds Trust Gill ... . CiD OO _ | ...J 1ZOO 
Neat Dealing Date December 27. 

0534 27561 

Lloyds Bank IrrtEmatiottil, Genera 

PO. Bo* 438. 1211 Geneve 11 (Swiueriand) 
FnBM 3. 
mjso 2' 

Llovdilht. Growtn ISO] BOO 33! 

Lloyds mt. Income - |5r26 



Barcbys Unicorn Int. (l.a.Man) 

3, Thomas SL, Dgaglat, l.o.M. 
Uracurn Amt. Ext— ...149 4 53J 

Do. AiaL Mht. Btf 341 

De. ML Income 

Do. I. af Man Trt R6.« 

Do. Maak Mutual ,.._l25-7 

06Z4 4S56 



Bis hops gate Commodity Ser. Ltd. 

P.O. bu 42, Douglas, l.o.M. 0624-23911 

ARMAC'Dec. 4 |5Ute^8 JL2' 


it *S10 and 

Management International Ltd. 

Bank of Bermuda Building, Bermuda 1 j . 
Canterbury Dec. 15._|5US332 * [+0.021 — 

M ft G Group 

Thre<- Quays. Tower Hill EC3R 6B0. 01 -626 4588 
Atlantic Dec. 12 IUS2J7 3341 

w ffl 

Auil E«. Dec. 33 
Grd Ev-Acc. Dec. 

Is Land 

(Accum Units'! 

- . I 


Samuel Montagu Ldo. Agents . 
114.0ldBriudSL.EC2 01-588 6464. 

AoolfoFd. Dec. 13 

Japfeu Dec 15 Mr3L)Jj 

117 Group Dec. 13 ... WSJflJ? 
117 Jersey Nov. 29.. L53» 

__ r Jersey 
JsvO'sNo* 30. 


Orighally i: 

Bridga Management Ltd. 

P.0. Box 508, Grand Cayman, Cayman Is. 

NTathl Dec 1 | Y17.B58 | | — . ... 

fop« FAOe 5 ™! 65 2156[ | 0.77 Murray, Johnstone (Inv. Adviser) 

Britantta Tst Mngmt, (Cl) Ltd. 

30, S«b SL. SL Heller, Jmy. ' . 0534 7 3114 


Starflna Du»imnated_^li. 
Qrowth in 

_ _ . invest [37.0 

IflM.FA [803 

1 50 

lt3, Hone St., Glasgow, C2. 

•Hope SI. Fd -.1 U 5540.28 

‘Murray Fund _ . . .( US3LL03 
NAV Detember 15. 

041-221 5521 
1+0771 - * 
+0J8l — 

Negrt SA. _ 

10a Boulevard Royal. Luxembourg • 

NAV Dec. 15 | SUS12.J8 |+IU9f — 


Ui. Bsttr ttaottaiM . 

Utdvtl.STst [i«is5J7 .. 

InLHfohlnLTu |ijj5895 O.f 

Value Dec. 15. Next deaHiq Dec. 27. 
Brown Shipley Tit. Co. (Jersey) Ltd. 

P.O. Bax 583, SL Heller, Jersey. 0534 74777 

SUnA8nd.Fd.ihl |£1(M& 10DB] .„.J ll.W 

Butterfield Maitagement Co. Ltd. - 
P.O. Box 195, HanflKoa, Bemuta 

Buttress Equity [Sug3l 239) I 174 

Buttress Ineomr -J$U52JH 2 j09( . . I 6.01 

Prices al Dec. I. Neil fob. day Jan. B. 

For Copdhex SA see under Keyser Ullman 

Negit Ltd. 

Bant nf 

Capital Intematlbnal SJL 
37 rue Notre-Dame, Luxembourg 

Capital InL Fund ( 5US17.65 |-D12) - 

For Central Aiiets Mngt. Ltd see under 
Keyur Ullman Ltd. 

'Charterhouse Japfiet.. d ■ v v 

1 Paly rooster Row, EC4 

Adrapa -.8 " 


Brrrwda BI9*1 . Kamllmn, Brmdl. ' 
NAV Dec.! (£5 95 — J | 

Phoenix International ■ 

PO Bov 77. St. Peter Port, Guernsey 
Inter -CWlar Fund _.|5US2J5 234) J 

Quest Fund Mngmnt (Jersey) Ltd. 

PO Bov 194. Sl Hetier, Jersey. 

Ones! Slla.Fid.lnL_. 1881 43 

Quest I nil. Secs 50.92 0 

Quest (nil Bd Hu® 97S 0.4_ 

. Price at Dec. 13. Nevl dealing 

Richmond Life All. Ltd. 

48. Athol otreet. Douglas. I.O.M. 

•The 5Uve» Trust _ 

Rlchmcrid Gd.Bd , 

Do. Plaiinjm Bd 

Do Diamond Bd. 

Do. Em IncomeBd. .. 
Carrillon C.G.i3d.__ 


?3 4 




0624 23914 
+0.R - 


Rothulfild "Asset Management (C.I.) - * 

P 0. Box 58. St. Julians Cl., Guernsey. 048126331 


O.C.Eg.Fr.Nov. 30^. 
0C.lnc.Fd Dec.l. fc .. 

tJ.C Inil Fd.T . 

OtSmCoNov. 30 , 

0 C. Commooi tv* 


Clive -Investments (Jersey) Ltd. " 

P.O. Bm. 320. Sl. Hefler, Jersey - 0534 37361 

Cm GHt Fd. ICJ.r._)9.62 , 9J3| .1 11 4 

Clive GDI Fd.Usy.l_ 1959 • ‘.gift j'U.4; 

C anthill Iris. (Gnernsey) Ltd. 

. Dlr.Condtr.t 

•Price on Wtu, 
I Prices on Die. 

J m 


S2K69". 293. 

.4; Rest deifing Dec. _ .. 
7. Neu dec img Dec. .21. 

Rothschild -Assef-lVIgt. (Bermuda) * 
.-PC- Bqv-66^, Bk. of Bermsu Bid,. Bermuda 

P^Tfox 157; Sl. Frier, Port, Guftnuey " " 

Man. Fd.' v . -^[1635 178ft . . . | — 

DWS -Deutsche. Get. F. Wttrf paptenp . 
*Cflmeburg«R9 113, 6000 Frankfurt 
Invests IW36.9B 38-90)-OJ0( - 

'“••FT Reserve ’ AisSs - Fd[SUS4 77N- 9.79[ 5 
Price on Dec. -ll. Next deaflng bee. 19. > 

•Royal Trust (C.I.)>d. lMgL Ltd. \.\; 




P.O. Bm IM. Royal Tst. Hie . Jersey. 
R.T. foil. Fd... ISUS9 28 4J 

R.T.Irt'I.Osy.iFd. JpO 

Prices Jt Dec. 12. Nen dealing , 

■jr Wri-JM 

12. Nen deanng Dec. 19. . 

Delta Group N . 

‘P.O. Box 3012. -Nassau, Bahamas - " 

DefU H». Dec. 6.....[S1ISL6« 1.77| | — - 

Deutscher- Investment-Trust 

PuSUacfl 268S Bleberaaue 6-10 6000 Frankfurt 

Cancentrs [KfflGJO 21 601-0201 — 

InL Rtnienfonds |DUUNI 70.7(i| ..7| — . 

Dreyfus iHtercdntiMntal Inv. Fd. 

P.D. Bov N3712, Natiau, Bahamas. 

NAV Dec. 5 |5W15i4 16.64) „...| — 

tow Oft ft Dud ter Tst. Mgt Jrsy. Ltd. 
P.O. Bo* 73, Sl HeUer. Jersey. 

E.DJ.C.T F123.8 

The En#hh Afsociation 
4 For# Street, EC2 
Enq. to Sterling' ^1151 06 ! 

Wardgate Cm Fd*-K30 93 
‘Next dealing Dec. 20. "Nert 

Eurabond- Holdings N.V. 

Handebfcade 24, Willemstad, Curacao 

/Save ft Prosper International 
Dealing lo: ■ “ 

. 37. Broad St.. SL Helifr. Jersey. 

U.S. DalfoMtenambMliMj Fundi.. . 


Dir. Fid. InL— ( K 

InlrniJL G r.‘t [7 


North American"*..... 

Slerii mHJenowfoite d Funds 
Channel Capital^ . ...|242.g 
Channel Isiands2 ...._ 
Comirrod •** * 



- I 

053420591 !i]n.«$V 

13LB1 [ 3JJ0 * : 



+o.g : 



01-588 7081 

fng Dec. 29.: 



.. . .... iiSn 

Prices on Dec. Il7 “L ... 

♦Weekly Dealings, ft Dally Dealings. 

Schiesinger International Mngt. Ltd. 

41, La Malle Sl., SL Heller, Jersey. 0534 73588' 



Gilt Fd 



■Far East Fund 


NAV per share Dec. 15. SUS20.B0, 
F. ft C. Mgmt- Ltd. inv. Advisers 
^ -^Umre nc^Poantney Hill, EC4R ORA 

Ceirt.Fd.DeC03 1 SU 55.43 1-0.06* 

Fidelity M«mL ft Res. (Bda.) Ltd. 
P.0. Box 670, Ha ml Mon, Bermuda 


. ■ Schroder Life Group 
Enterprise House, Portsmouth. 
iBtenutlaiial Fundi 


f Aft. Ass.. — SUS23.76. I I — . 

. um5^b - 

rWrMFd 1 fuSlCM- [-0841 

LEovily — 

• SEqutty .. . — ... ... 

LFlaetf Interest 

- SFried Interest 

f Managed — 

SManaged ..... 

1314 ' 




Fidedty MgmL Research (Jersey) Ltd., 
W fl e rlao Hse, Don- a.. SL Heller, Jersey. 0534 

Series A ( foul J K354 .- .1 : 

Series B I PacMc) .K9.3T 

Series 0 (AmAn.)_|U5ftl |. 

First Vfthtg Commodity’ Trusts 

10-12. SLUMroe'i SL. Douglas, l.o.M. 0624 25015 
FtL Vlk. Cm. Tk. ^.(35.2 37.11 .. .. I 3.00 

FsLVk.Dbi.Op.Tsl _..|S5 D 51ft... — 

Fleming Japan Fund SJL 

37, rue Notre-Dame, Luxembourg 

Fleming Dec. 12. SI/S63J1 | V — 

Free Werfa Fund Ltd. 

BuUeriMM BUg. KihUhro. Bemucb. - 

NAV Nn. 30 | SU 5189.38 | 4 — - 

G.T. Management Ltd. 

Park Hie. 16 Ftmbunr Circus, London ECZ 
Tel: 01-628 813L TLX: 886fOO 
London AoeidS ton 
Anchor ■Snjnto,...:.. JU51 Bl - l.M 
Anchor Gilt Edge.— £9.41 94« 

— jnf 

waoi7 lO.boj 


J. Henry Schroder Wagg ft- Ca. Ltd. . 

' 170, Cheapside. EC2. ‘ ' ' 01-58840(10 

CtewS Dec 15, [ 

■ Tralah 
Aslan i 










_ 5 

G.T. tolraJia FK _,.SUS9. f# 1021 
G.T.Bono Fund- [ SU513.64 

I t: Kr. ISbfoJ*F3L8.M ,Sb,89 924l 

EfABncjHr io. j 

Gartmore Invest. Ltd. Ldn. Agts. 

2, St. Mary Axe, London. EC3. 01-283 3531 

!erwy L Ji‘ 73741 

ID 100 ft ..... I 1225 
Garfei ire Fmd MngL (Far East) Ltd. (iHhl 

Japan Fd_ gyg8?l) 1921 

N. American TlL ffiSpi 11.4: 

Ind. Bond Fund KUSlCia 10.8! 

Cartawc fovntmvat MngL Lid. (a) 
PB.Bmtaz.DougMj.toif^. , CkiW2?ni 

Gartrm-rrnHLfoC-LTfrZ 22tJ llftl 

Gartmore ImJ. GrtM6LZ 65ft J 2b0 

a, Ji. ratty umuun, ll. 

Carimarr Fund Must (C.I.) 
4L Broad Sl. 9. Hrifcr Jersey 
Oik Fund! Jersey)... _.Jt5.00 




5 .M 

Sentry Assurance iirtenurtionai Ltd. ., 

P.D. Bov 326, Hamilton 5. Bermuda 
Managed Fund UUSLW3 2.15631 J — 

Singer ft Friediander Ldn. Agents. - 
20. Cannon Sl. EC«. 01-24S 4646 

Dekafonds. 27.8« I 6.U 

Tokyo T»L Nov. 21 ...| SUS40.00 | J 1J5 . 

Stronghold Manage mant Limited 

P.O. Bu 315. SL Heller, Jersey. 0534-71460. 

Commodity Trust 186.49 9L57J J — , 

Surimrest (Jersey) Ltd. (x) 

Out*™ Hse v Don Rd, Sl Heller, Jsv. 0534 27349 

' American IndTst If 6 96 7_U| -0.11 — 

Copper Trust 0176 IIM-OW - .. 

Jap. Index Tsl |OD.61 20.84|-0jlfl 0.44 

TSB Unit Trust Managers (C.l.) Ltd. 
Bagatelle Rd . SL Saviour. Jersey. 0534 7349*. 

Jersey Fund [49.0 51.61 .....J 4.65 

Guerme* Fund Ul.O 51ft . . .] 4i5. 

Prices « Dec. 13. Neil sub. day Dec. 20. 

TSB BUt Fund Managers (C.l.) Ltd. : - 

Bagatelle Rd . SL Saviour Jersey. 0534 73444 

Gilt Fund 199.0 lOI.M 11210 

. Gilt Fund Ufv.t 194 0 1D20| 112.10 

Prices on Dei. 13 Nevl Sub. day Dec. 20 

Tokyo Pacific Ho Wings N.V. 

'(minds Management Co. N.V, Curacao. 

NAV per snare Dec. XL SUS64.84. 

Tokyo Pacific Hldgs. (Seaboard) N.V. 

I mum-, Management Co. N.V, Curacao. 

NAV per share Dec. 1L SUS47J25. ' 

Tyndall Group 

P.O. Bo- 1256 Hamilton 5. Bermuda, 2-2760 . 

O'seas Dec 13 

( Ac ennt. Units!., 



3-Way InL Nov. 16. ,|3US269 ' 2- 



A 3. 

Kambro Pacitie Fmd Mgmt. Ltd. 

2110, CDonaugfo Centro. Hong Kong 

Far East Dec. 13 04 5T 15351 ... . | — 

KambrM Bank (Guernsey) Ltd./ 

Hambres Fd. Mgrs. (C.l.) Ltd. - 
P.O. Box 86, Guernsey. 04B1-26521 

- - - a isifo 

21 11254 

_. .. 10^ 

lot. Svsl *8* $US|1.14 1.16 

Prion an Dec. D. Nnl dealing 
Headers an Baring Fund Mgra. Ltd. 

605, Gammon House, Hong Kong. 


•Exdudve af Sry prelim, charges. 

HiU-Samoel ft Co. (Guernsey) Ltd. 

8 LeFebvre SL, SL Peter Pan, Guernsey. C.l.' 

Guernsey Trt. |149.7 1602«| -1.9| 3.70 

HVI Samuef inrei, Mgmt. Intnl. 

P.O. Box 63, Jersey. 0534 27381 

ffi c ®l^ r -ssr«SS5.TriS , fc-« » 

H.S. Overseas _! BUSUB 1886ft — . 

q5.F.Fd.tAcc.!,_w&J&e 1631 - — 

CrOUB»Fd.<AfX.T,Ufr£72 3.74-0D7 — 

ITF Ffl. (ACCJ E&3A07 B29[-0J»4| - 

iBtemUoMl Pacific la*. Mgmt Ltd. , 
P.O. Box R237, 56, Pin Sl, Sydney, Aurt. 
JavriM Equity Trt. .,.|JA233 245[ .. ,J — 

J.E.T. Ktmagers (Jeraey) Ltd. . 

P.O. Box 98, Channel House, Jersey. 0534 73673 
Jersey Extnd.TB. 

2 New SL, SL Heller. Jersey 

TOFjL Dec. 14 

t Accum Shares!,,,. 

American Dec. 14 

I Accum store;! 

Far East Dec. 14, , 
I Accum. shares'. ,, 
Jerj#yFd. Dec 13.., 
iNoo-J. to. Ul;.!. , 

GIH Fund Dec. 1? 

i Accum Shares! | 



(£7 50 


Kaittl V”; 




*80 = 

105 43 .... 






Victory .HNK^Douet^lUe df_Mio.. 0624.24111. 

Managed No. 16. -7(134.8 14201 J 

Undtfe Assurance (Overseas) Ltd. ' 
P.O. Bs> 13B8. Haralhon 5-31, Bermuda 

Intend. Mngd. Fd — [9U5Q.96 — |. f 

UniDn-lmrestinent-Gaielhehaft nbH 
Posttach 167b7. D 6000 Frankfurt lb. 



Unifonds ,. 


—I 720 

Unltpeciall (60.05 63001-1 

. Utd. Intnl. Mngmnt (C.l.) Ltd. 

14, Mufoatla- Street , St. Heller, Jersey 

U.I.B. Fund JW31SJE 105531 

United States Tit. IntL Adr. Ce. 

14. Rue Aldringer, Lu.embaurg. 
U.S.Trt.Iitv.Fnd..,...|Sll)J2 - [-Olft 

Nit assets Decentwr 15. - 

S. G. Warburg ft Co. Ltd. • 

30, Gro-Jiam Street, EC2. 1 01-608 4555. 


'Asa mlO.'^firt’snt d»"SK. 3ll‘ 

Ciw. InL 0« 15 . .. 
Eng. Int Dec 15.—, 
Gr. Si. 3Fd. Nov 30.. 
Mere. Ehd.Dec.13. ., 
Merc My HU Dec .18.,, 

m - 

J J6B7. 
♦0IH1 — ■ 

Jardbie Ffomittg ft Co. Ltd. 

461li Floor, -Conoaught Centre, Hong Kang 

Jartflm Emil Tsl 



, FhwLl« 

ntl.PatSecsl foe. )_. 
Do. (Accum.) 

NAV No*. 30. 

H013.44 ^ . 

‘Equhelrot SUSiJL 

Next M*. day Dvcrmber 29. 




s m 

(susia4 7 ^053j 
-1920 .' 10231 
Warburg Invest. Mngt Jrsy. Ltd. 

3. Charing Crow. 5l. Heller. Jsy.Cl 0534 73741 
CMFLld.Nm 30,. .1*1131156 13 

S lij*6f4-Db«l — 

8 n^-rO.421 — ' 
World Wide Growth Manage nMtft 
10a, Bouleiard Royal. Luxembourg 
.Worldwide Gdi Fd| $uS14.76 |-(L19t — 

CUT Ltd. No». 30 

Metals Tsl Nov. 16_ 

TMT Dec. 18 

TUT Lid Dec. 18 . . 


PrtGei ’do n« foclude S premhun, eieepl where inSuud * and are In pence unless otherwise tadtetfed.' 
yields, 4L Irtiown fo brt column allow lor all r - . 

btocby'sitffett t_,VleW based on offer price i 
of UK taxes, a Periodic premium insurance plans. 

expenses except agent's commission, y Offered once injuries all eipenses if bought (teough managers. 
Z Prertous day's price. ♦ Net o( tar on rraflsid capUa I gams urWvji Indicated try *. 4 Guernsey arms, 
d Suspended. 9 Yield before Jersey U«- t Lx-sufadivisiDn. ft OnJy available (a clianuble boaes. 




■ . "a? &&&' 'SE&&!** 
"sTwawap “* * 
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4.1 It W2 1142 

Iran troops mutiny 
in demonstration 


TEHRAN — A mutiny by 
some Iranian troops during a 
demonstration against the Shah 
has raised fears about the 
loyalty of the Iranian Army. 

The latest incident happened 
in the north-western industrial 
city of Tabriz when 25 soldiers 
laid down their arms and 
allowed opposition demonstra- 
tors to take over their vehicles, 
armoured personnel carriers or 

A colonel is reported to have 
joined them and last night the 
Government admitted that a unit 
in Tabriz bad been recalled to 

The demonstrators were obser-. 
ving a national day of mourning 
called by the religious leaders of 
Iran's Shia Moslem community 
in memory of those who died 
last week in a pro-Shah back- 
lash to previous opposition 

The Tabriz incident comes a 
week after a report that mem- 
bers of the Shah's bodyguard, 
the Imperial Guard. had 
mutinied in their barracks near 
his palace in northern Tehran, 
killing 15 officers and injuring 
many others. 

Officials have since indicated 
that the men concerned were 
not soldiers but had put on army 
uniforms to infiltrate the base. 
That account is widely dis- 

An important factor in the 
most recent incident is believed 
to have been the call by the 
most senior religious leader in 
the country. Ayatullah. Shariat 
Madhari. who called on soldiers 
from his centre in the holy city 
of Qum not to sHoot Moslem 

The Taiiriz incident started 
soon after soldiers were said to 
have opened fire on several 
thousand opposition demonstra- 

It is bound to raise questions 
about the loyalty of the Army. 

On the whole, the Army has 
been loyal to the Shah and the 
military government of General 
Azhari, the Prime Minister. 
Over the past 20 years the 
Shah has personally vetted the 
promotion of any officer above 
major and has encouraged the 
development of the Army as a 
military caste separate from the 
rest of Iranian society. . 

Until the Tabriz incident that 
policy appeared to have 

A national strike called yes- 
terday by Ayatullah Khomeini, 
the religious leader in exile in 
Paris, was evidently widely 
observed throughout Iran. 
Workers who did not strike are 
believed to have continued 
arriving at work but going slow. 

Chrysler UK heads 
for heavy losses 


CHRYSLER UK seems set for 
heavy losses in the current year 
following its series of damaging 
industrial disputes. 

The Government, under the 
terms of its rescue deal nego- 
tiated in 1975. is committed to 
meeting only half of any deficit 
this year up to a total of £15m. 

But PSA Peugot-Citroen. the 
French motor group which is 
expected to sign an agreement 
on Thursday to buy Chrysler 
UK as part of its purchase of 
the Chrysler Corporation Euro- 
pean operations, has already 
made clear that it will not be 
deterred by losses. 

PSA has said that, however 
unsatisfactory the results from 
the three Chrysler Europe sub- 
sidiaries in France, -the UK and 
Spain may be, its $430m deal 
would not be prejudiced. 

PSA shareholders meet on 
Thursday to approve the issue 
of 1.8m shares to be taken up 
by Chrysler Corporation as part 
of the takeover deal The 
British Government has already 
given broad approval to the 

Though the scale of the losses 
suffered by Chrysler UK dearly 
will not be known until the 

end of the year, the company’s 
performance has been very 

Under the planning agree- 
ment negotiated with the trade 
unions but which has still to 
be signed by the Government. 
Chrysler was forecasting a 
small profit. 

In spite of production prob- 
lems at Linwood, Scotland, the 
company confined losses in the 
first six months to only 
£837.000. A subsequent long 
stoppage by toolmakers dis- 
rupted output at the two 
Coventry plants during the 

The Ryton assembly plant, 
Coventry, which returned to 
work last week after an un- 
official strike, is only the latest 
casualty of Chrysler’s troubled 
industrial relations. 

In spite of the problems. 
PSA is believed to have told 
the Government that it will go 
ahead with Chrysler plans to 
introduce a new car at Ryton 
next year. 

The car. a derivative of the 
successful Alpine model, will be 
a four-door vehicle with a boot 
Ryton will be the sole supplier 
of the car, which will be sold 
throughout Europe. 

Continued from Page 1 

Exchange controls 

exchaneg controls on both 
inflows and outflows, which it 
is believed will create no 
barriers to normal trade. 

The chances of Britain’s 
being able to maintain this 
exchange-control policy will 
depend on whether the Govern- 
ment succeeds in ils aim of 
maintaining the stability of 
sterling, aiid on whether there 
are speculative outflows to 

The British decision is un- 
doubtedly the simplest solution, 
in view of the close links 
between the two economies and 
the practical difficulties which 
would have arisen if controls 
bad been imposed. 

Stewart Dalby writes from 
Dublin: Representatives of asso- 

ciated and Don-afsociated Irish 
banks met officials of the Irish 
Central Bank yesterday and 
were told that as far as normal 
business was concerned they 
should carry on as normal while 
the one-for-one parity’ link with 
sterling continued. 

A major problem overhang- 
ing the money markets when 
they open today is that the 
Irish Government has decided 
to go into the EMS on 
January 1 under a 2J per cent 
bond rather than one of 6 per 
cent. The decision is said by 
Government officials to have 
been taken to avoid speculation 
against th» Irish pound and has 
not been forced on the Govern- 
ment by EEC members. ■ in 
exchange for the better grants 



FOG in parts, some rain later. 
London, SX.. E. Anglia, and 
Cent. S. England. Midlands 
Fog at first, dr}' sunny 
intervals later. Max 5C (41F>. 
N.E., N.W. and S.W. England. 
Wales, Lakes 






*C °F 

■C *F 

A'nutm. C 4 39 Madrid 

F 7 45 

Fog patches, becoming cloudy. 
Max. 7C (45F). 

E. and Cent Scotland, Argyll, 
Highlands. Scottish Islands, isle 
of Man, N. Ireland 
Cloudy, some rain. Max. 7C 

S. and E. Scotland 
Mostly cloudy, some rain. 
Max. 6C (43F). 

Outlook: Bright intervals, 

Bahrain S 19 66 
Baclona. C 11 52 
Beirut S 19 66 
Betfast S 3 37 
Belgrade n 2 38 
Berlin S -1 30 
8‘ham F I 34 
Bristol Fg O 32 
Brussels S —2 28 
Budpst. C —3 27 
B. Aires S 28 82 
Cairo S 21 70 
Cardiff C 1 34 
Chicago C 5 40 
Cologne "S -2 28 
Cpnhgn. C -1 30 
Dublin S 6 43 
Ednbgh. S 4 29 

Franfcft. S -1 30 
Geneva Cl 34 
Glasgow C * 33 
Helsinki C -3 27 
H. Kang C 21 69 
Jo' burg C 21 70 

Lisbon S 11 52 
London S 5 41 
Luxmbg. S ~3 27 

Mnchsrr. F 
Mel bn a. C 
Mexico S 
Milan Fg 
Montreal S- 
Moscow C 


[Munich C 
Nmcsil. C 
N. York S 
Oslo C 
Paris S 
Perth R 
Prague S 
Reykivk. R 
Rio J o 5 
Roma C 
Smgpre. S 
Stkhtm. C 
Strsbrg. S 
Sydney C 
Tehran S 
Tol Aviv S 
Tokyo C 
Toronto C 
'Vienna S 
Warsaw C 
Zurich C 

27 80 
IS 59 
30 86 
"2 28 
-1 30 
20 6B 
8 46 
19 66 
10 50 
— 3 26 
-2 23 
-4 25 
-2 28 

Afaccia C 
Algiers C 
BIK-Di. Fg 
Brrdr. S 
Boutgn. S 
Csblnca. T 
Crfpe T. 3 
Corfu C 
Oubrvfc C 
Faro S 

Flornce. C 
Funchal S 
Glbrsltr. F 
Gurnsy. C 
‘ Innsbrk. C 
Tiwmss. F 
I. Of M. f 
Istanbul R 

3 1 Jersey S 
?|L. P/ros. F 
3 Locarno F 
Majorca C 
l Malaga C 
> Malta C 
1 Nairobi R 
M Naples C 
9; Wee C 
t Nicosia S 
} One no 5 
! Rhodes F 
3 Salzb’g Sn 
3 Tangier C 
} Tenerife F 
1 Tunis C 
i Valencia C 
r Venice C 

G— Sunny. F — Fair. C — Cloudy. 
R— flam. Fg— Fag. Sn— Snow. 
T— Thunderstorm. 

Reports from oilfields and 
refineries show that production 
continues to increase from the 
low levels of last week when 
the figures dropped nearly as 
far as in a similar action in 

Oil production was 2.6m 
barrels, compared with more 
than 5m normally. On Saturday 
the figure was 2.14m. 

Our Foreign Staff adds: 
Strikes by the staffs of Iran- 
Japan and the Iran-Nippon 
Petrochemical companies in 
Bandar Shohpur. on the Gulf, 
have ended, the official news 
agency said. 

However, many Customs 
officers in the Gulf ports and 
on the Turkish border are still 
on strike. Goods and equip- 
ment are being dumped on the 
Turkish side and the ports are 
crowded with goods awaiting 
Customs clearance. 

Maurice Samuelson writes: 
British Petroleum has reduced 
oil supplies to customers by 
about 25 per cent since Novem- 
ber because of the troubles in 

Most of the IS other partici- 
pants in the Western oil con- 
sortium exporting from Iran 
have also reduced deliveries. 
BP is the largest single operator 
in Iran. 

Banking In Iran Page 4 

ICL order 
could fall 
foul of 
U.S. Act 

By David Fishlock, Science Editor 

A 13m UK Atomic Energy 
Authority order for com- 
puters, placed with Inter- 
national Computers, could 
fall fool of the new U.S. Non- 
Prolimeration Act 

Commercial executives with 
ICL and its U.S- micro-circuit 
supplier Intel have dis- 
covered simultaneously that 
the British company could 
require a special export 
licence from the U.S. Depart- 
ment of Commerce. 

A licence is needed for the 
export of any equipment for 
use with the “ sensitive *’ 
nuclear technologies — those 
concerned with refining 
fissile materials such as 
plutonium and uranium-235 — 
even when, as in this case, 
the importer is already 
recognised as a nuclear 
weapon state. 

The Act* Public Law 95- 
242. approved by President 
Jimmy Carter last march, is 
a complex one. It represents 
a compromise between widely 
differing factions in the U.S. 
Administration and Congress 
on the question of tightening 
controls on U.S. exports or 
technology which might 
become associated with 
nuclear weapons. 

ICL buys many of its more 
advanced micro-circuits from 
the U.S. 

The UK contract which has 
raised the problem is for 
several 2900 systems, worth 
more than £13m^ for the 
United Kingdom Atomic 
Energy Secretary, earlier this 
Winfrith establishments. It 
was announced in September 
and the first two machines are 
dne to be delivered in 1979. 

Both British Nuclear Fuels 
and the fast-breeder reactor 
establishment at Dounreay, 
are using the Risley complex. 

Nuclear export security guide 
Page 6 

Right tightens 
hold upon 
electrical union 


second largest craft union has 
been consolidated with the 
crushing defeat of two Left-wing 
members* of the national execu- 
tive of the Electrical and 
Plumbing Trades Union. 

Ballot results announced yes- 
terday mean that moderates will 
hold all the electricians' seats, 
leaving only two of the three 
plumbers’ lay representatives 
constituting the political 
“ opposition.” 

Including Mr. Frank Chappie, 
the general secretary, and Mr. 
Charles Lovell, the national 
secretary, who now have votes 
on the executive the balance is 
12-2. One electrician’s seat, that 
for the South Wales division, is 
vacant after the recent death of 
the moderate Mr. Bernard 

The defeated Left-wingers are 
Mr. Harold Best in Yorkshire 
and Humberside and Mr. Phil 
Ramshaw in North-East 

Mr. Best, a non-aligned 
Marxist, stood against Mr. 
Chappie in the last elections 
for the general secretaryship. 
He was the subject of an 
internal union inquiry follow- 
ing what was described as out- 
side interference in the form 
of an organised campaign by 
Communists on his behalf. 

He was defeated by a mode- five shears ago. 

Britain complains at 
Statfjord field costs 


OSLO — Britain has- made an 
official complaint to Norway 
about the steep rise in develop- 
ment costs on the -Angio- 
Norwegian Statfjord oil field, 
which straddles the median line 
between the two countries in the 
North Sea. The complaint comes 
in a letter from Dr. Dickson 
Mabon. UK Minister of State for 
Energy, to Mr. Bjartmar Gjerde, 
the Norwegian Oil Minister. 

It follows a long and simmer- 
ing argument between the two 
countries over the field, which 
is being developed at a cost of 
more than £3bn and is the 
largest in the North Sea. The* 
entire field ■ is being managed 
by the Norwegian subsidiary of 
the U.S. company, Mobil. 

Dr. Mabon claims that Britain 
could have developed its part 
of Statfjord more cheaply on 
its own than in partnership with 
Norway. He urges Mr. Gjerde 
to bring costs under control as 
quickly as possible, and hints 
that Britain will have to con- 
sider some kind of action if no 
** acceptable reply ” is forth- 

His letter repeats earlier 
British claims to a larger share 
of Statfjord — the Norwegian 
Government - owns more than 
85 per cent of the field — and 
indicates that Britain is becom- 
ing increasingly sceptical about 
co-operating with Norway in the 
development nf fields which 
straddle the sector boundary. 
It also criticises Norway's ten- 
dency to favour Norwegian 
industry where North Sea con- 
tracts are allocated. 

The immediate cause of Dr. 
Mabon's letter is thought here 
to have been the recent award 
of yet another large Statfjord 
contract to a Norwegian com- 
pany. The contract, worth 
between £9ra and £10m. is for 
the accommodation section of 

Bank guarantees urged for loans 
to small companies 


the Bank of England to per- 
suade the main clearing banks 
that they should set up a special 
guarantee scheme for under- 
writing the loans they make to 
small companies. 

This is the latest in the series 
of initiatives launched by the 
Government during the past 
year to help small companies. 
But it has not so far gained 
much support from the clear- 
ing banks, several of which con-' 
sider that they have sufficient 
special arrangements already. 

Following a meeting last 
week, however, between the 
Bank of England and the clear- 
ing bankers, the outlines of a 
possible scheme are being 
explored at the request of 
Mr. Harold Lever. Chancellor 
of the Duchy of Lancaster, who 
is responsible for the Govern- 
ment’s small-company policies- 

The idea is that there should 
be a pilot insurance scheme 
which would be financed ajd 

organised by the banks them- 
selves. either collectively or 
jointly. The extent of the pilot 
scheme might be limited by the 
amount of money it is given to 
spend or it might be launched 
in a specific area or The country. 

There would be little financial 
or other involvement by the Gov- 
ernment although there have 
been some suggestions that it 
might be prepared to fund up to 
10 per cent of the cost of meet- 
ing the guarantees. 

The Treasury and the Depart- 
ment of Industry have opposed 
any major Government involve- 
ment since the idea was first 
mooted earlier this year. A 
report from the National 
Economic Development 

Council’s Roll Committee on 
finance for industry reflected 
this view in August, and added 
that it could not identify any 
real need. for a loan guarantee 

Since then small company 
pressure groups have continued 
to urge that a scheme should be 

tried on an experimental basis 
and this has now been taken up 
by the Government which Is 
looking for a new measure to 
announce for small companies 
early next year. 

The Wilson Committee on 
Financial Institutions is also 
expected to back the idea in its 
report on the financing of small 
companies which is due to be 
published soon. 

Mr. Lever has made it clear 
in a letter to clearing bank 
chairmen that he considers a 
scheme could be useful if it 
stops owners of small com- 
panies being discouraged from 
enlarging their businesses, by 
the extent of personal guaran- 
tees demanded by the banks. 

He has also told bankers thar 
they should be prepared 
“ cautiously to push forward 
the frontiers of risk taking" 
associated with their lending. 
They should be prepared to 
back a scheme that links such 
an approacb with easing the 
personal problems of small 

rate. Mr. Bill Hayes, an electri- 
cal engineer, who polled 4.147 
votes to Mr. Best’s 3,712. Mr. 
Rainshaw was eliminated under 
the single transferable vote 
system, and his seat won by Mr. 
Barry Davis, a Durham area 
official, who polled 2.722, with 
Mr. John Jordan second with 
2,640 votes. 

An announcement from union 
headquarters said that mode- 
rates had secured another 
success. The two defeated 
sitting members were “normally 
associated with opposition to the 
moderate majority.” 

Since the Communist ballot- 
rigging scandal and subsequent 
trial in the early Sixties, the 
EPTU leadership has been 
noted for its anti-Communist 

The latest elections, conducted 
bv the Electoral Reform Society, 
will have little influence on 
overall policy. 

But the results reinforce .the 
EPTU's political alignment with 
the Amalgamated Union of 
Engineering Workers, where the 
Right has made a clean sweep in 
recent years, and with whom 
the electricians are seeking a 

The electricians’ Yorkshire 
and North-East areas were one 
large division, and held by a 
moderate until they were split 

At the end of one day after 
the OPEC announcement of an 
average year-cra-year rise in. the- 
price of oil of 10 per. cent, tins 
rise had been trimmed back to 
8.3 per cent for the major 
European countries. This was 
the measure of the dollar's 
reaction to the news. It was 
clear that the U.S. administsa-: 
tion and 'much of the UJ5. finan- , 
dal establishment had been 
lolled into a sense of false 
security by polite noises from 
the richer OPEC nations. The’ 
official picture was that these 
nations had approved the dollar 
defence package and would not 
jeopardise the value of their 
dollar holdings. The reality is 
that diversification away from 
the dollar were possible remains 
their most likely course. It is 
a dangerous development for a 
currency which has, since the 
November package, never really 
been able to stand on its own 
two feet This is why Wall 
Street took fright last night 
One of the most telling signs 
of the uncertainty over the 
dollar was the swift reaction of 
the gold price which jumped 
nearly 56 to. $212$ per ounce. 
This rise is all the more 
ominous in that it took place on 
the eve of the U.S. authorities’ 
first super gold auction " later 
today. -On an annual basis 
monthly auctions on this scale 
are equivalent to 80 per cent of 
production by South Africa (far 
and away the' world’s largest 
gold producer), and should 

Index fell 7.0 to 474.0 


Wkobsaie Prieay.Dewfii* maM 

and in the case t>l KepdaL anti. • 
Dent probably fbr at least -none 
'mouths. No doubt .It is jlBt 
coincidence, but the fact remains 
that the department's- tonga - _ 
action comes at ‘ a politically 
opportune time.. Not only is the - 
■Wibomcommittee stiodying the 
whole area . of cwfip&py super* 
vision, but .the Banking. '-.Bui v 
promises hew powers -in thenear » 
fubSe. ' V / I 

■' The authorities .also seem to 
‘ be tightening up on dishing ;out _ ■ 

the coveted authorised banking 1 
status . ("the top ; Tuiag on'tbe.i. 
-bapknig- Sadder). 1 In itsTJ,at^L> : 
list 'of- "authorised .bahJ^,' . ' 
r Bank/. of -England has; '.deleted . •„ 

the . ;B.apq?® 

Coihm er6e Co nfineutfll ; This • - ■ 
-bask was-taken. over 1 e&rliec_this.\. .. 



prove a real test of the gold 
market’s appetite. The U.S. ' 
authorities have taken a calca-. 
lated risk that by dumping this 
amount of gold on the market, 
they will defuse the yellow.’ 
metal's speculative appeaLV 
Judging by yesterday’s strength. - 
in the gold price they have so 
far failed to do this. 

Once again it is the Deutsche 
Mark which will bear the brunt 
of any sustained assault on the 
dollar — its dollar value was up . 
by 1.S per cent yesterday. This 
might seem perverse in that." 
Germany is singularly vulner- 
able to an oil price rise and is 
going through a historic strike 
in its steel industry, but it is 
the lack of a readily available 
alternative that sends the diver- 
sifiers into the Deuteche Mark. 
And already the virtuous circle 
of the declining Deutsche Mark 
impact of the oil price Increase 
is beginning to operate. The 
result is that the OPEC decision 
constitutes a baptism of fire for 
the EMS: the rates for the new 
members — Italy, France, and 
Ireland — are to be set on the 
last Friday of the year and a 

the field's . second platform, 
Statfjord B. 

Redpath Dorman Long, the 
British Steel Corporation sub- 
sidiary. was one of the eight 
companies or groups invited to 
tender, but the order went to 
a firm in a west Norwegian 
town, where unemployment 
among shipyard workers is 
already a problem. Some 
reports say the Norwegian com- 
pany was allowed to lower its 
original bid in order to secure 
the contract. Initially, one of 
the lowest bids was presented 
by Blohm & Voss of Germany. 

Mr. Gjerde has rejected the 
the charges of protectionism and 
the criticism of cost manage- 
ment on Statfjord. In a radio 
interview, he said that Nor- 
wegian- British, relations had not 
suddenly worsened and there 
was no danger that Britain 
would withdraw From joint pro- 
jects in the North Sea. Britain 
had. all along, been dissatisfied 
with its share of the Statfjord 
field, and with the share of 
Norwegian - sector offshore 
orders going to UK industry. 

Norway was dissatisfied v/”h 
the amount of work which Nor- 
wegian firms got from the 
British sector. The British had 
•* a rather extensive organisa- 
tion ” looking after their indus- 
tries’ interests in the North Sea. 
- On our side we have only two 
or three men,’’ be pointed out. 

The Norwegian Oil Ministry 
said that a reply to Dr. Mahon’s 
letter would be despatched 
early thisAveek. 

• In London, it was unclear 
last night what if any. action 
Britain might take if the reply 
from the Norwegian Oil Mini- 
stry is not regarded as “accept- 
able." The Department of 
Energy said the argument over 
Statfjord was still at the discus- 
sion. stage, and no specific action 
was yet being considered. 

strong Deutsche Mark could be ~ 
a bugbear from the word, go..; ' 
But the OEBCjdeosion has 
come as a booster for 'sterling 
just as the Irish" are: moving , 
"into the EMS, So there is no 
immediate prospect of specula- : 
tfve movements , of currency 
from the UK -into , Ireland’ m 
search of a quick profit 
these relaxed circumstances the 
UK. authorities have decided 
not to bother about imposing 
exchange controls between . the 
UK and Ireland, though they' 
are no doubt ready. . to ' take 
- measures overnight at the least 
sign* of trouble. v _ ." " . . 

• The UK Government is there^ 
fore leaving th e.UK- speculators^ 
ih Irish securities to sweat ’ 
put Yesterday’s message: : was - 
simply that they shouid^npt 
assume they will get a premium 
windfall, implying at least thej 
■ chance of a cut-off date (the 
date of the Bremen- .meeting, '■ 
-July 6, is being talked about 
is one possibility i. -These are r 
correct tactics for the ' UK " 
authorities.- but. the investment 
currency dealers will hate them 
for it: yesterday, the premium' 
was moving, inconclusively stffb 

taie &cjup, end the authorised. 
Stated ija$ • Tipt been- handed 
even though the Tbank. 
'operating- - Sh. London. ?Fhe : ? 

■ ‘ Kn ’ fWnf 1 

statds.theSe’ -days 

‘file £• 

dealers assessing; the possibility 
of loopholes. ...emerging;- ' ; auft 
meanwhile maintaining yejy 
wide quotes. .. - - • 

Bank supervision . • 

The' Department of=Trade -is 
at pains to - emphasise: -that ,- Its 

■» i Anr re PIL'I ■ tho /vdn/rn W • 

actions . -against the “ fringe,” 
banking concerns, KendaJ .and 
Dent and: Baraett Christie, ^are; 
unconnected m any way- Yetit- 
is clear that the DoT lias been, 
much ipore - vigilant recently 
than it used to be. It seems 
likely in both of these cases., 
that DoT • investigators have • 
been at work for some time — 

Sotiie by ’^ 'profits fcrr te e year • 
>to August up from £4-87m 
I -tio. jii 5 t.'bvet • £7m ^pre-tax. and: ; . 
there is moretb^come ip 1978-79.’ ' 

- The- oversea&cqiilribtfticni to the:; _ 
latest ^gurt: is' Up -frpm;38 

45 - perl cent' and some of the 
smaller' branches," Save Shawn* 
^spectacular . gains. -- Sales -id 
Monaco. -for instance, have more ; 
than doubled while Switzerland 
v is up by .a- half. to < '-over:£I0m. ^ •; 
r.‘ Auetion salej during .tee first : ' . 
four-'mohte^ of .-tee current 

- season ,ar& up ■by„meariy : -two L 
: fifths, and profits growth, should ; 

be evdti greatei: 'Since the - aver- 
age price, per iot has risen very 
substantially.^' Apert- ‘' from 
tising prices, Sotbeby puts this 
dbWn fact Sat ; higher 

qualiy .. property - / bemg 
' attracted’ tb its auction robix&v ' 

' 'Li addition' the current yeajr 
wjU get part of thr benefit of . 
the imposition of '"the ..buyers* 
preminm-'r (from January} on 
U^. sales'Thik could add abosiL- 
.3- per- cent t<r revenues on 
business which lasrtLyear gener* 
ated’ oveY- a third of Sotheby's 
-auction salpsl .At fh£ s®™ 6 .tttae; - 
various • new activities V are 
coming tlfrtrdgh: ;^the develop- . 

: m eirt stage, such & real -estate? 
brbkerage. in the ,U5. which 
. notched Up sales of $17m i kthe 
'iatesf_peribd. ' : 

; ■ .'So jfaxiv of ' coarse, there is 
nothlng ^in ‘ sighT TO'' "compare 
vpn Hirsch sale, 
whicb ;taade -a ; measurable-’ 
differ ence- tp profits' in the.latter 
-patr pf,i977jffS: The shares yield . 
4 per. teiirM JSSp. Und -tie p/e 
■is around ; 10. -'i' . ‘ . 

Y* ^ ’ 

■V • 

^^1 7. 

for the half year ended 30th September1978 

_ _ - -Group year endiho - . ^ 

Summary of results , v March 1 979 . 

■’ Half year . 

. rOQO O-' 

Group Sales - 

(Including share of Associate company saies)- ' 95.55J5 v 

: . , : -- V^MarchWe- 
.Half year - v /' .FuJfybar 
vrocK^z: , f'doo 

^7.f87: 19654a 

United Kingdom sales 

Overseas companies sales 

63.789 ; 
15.3te}- : 

62^346 126;290 

13,676: , - ' V ; 27;63T 

13,142!;’ :■ 

Pretax surplus 


Earnings per Ordinary Shareholder . V " : P 
Shareholders Ordinary dividend . ? ' v 

Per share v . .. Per shaW r ' ; : Pef'shai^.' .i : :> 

.■ : 6v40f7 ; ; - if..'- T4-7pJ>^ V. 

External sales per employee 

Copies Ofthe interim report ■ ' '■ ;; V:- 

and group brochure are ■ . ^ ;; ; 

available from The Company Secretary: : V • Z’t" 

Norcros Limited. Reading BridgeHause, i . ’■•'A 

Reading, Berfcs. RG1 8PP. /p- %/£- r S\ M 

- -• -a 

Berjcs. RG1 8PP. 

— — v' .-yc\ ? V . )\ C'. ,..T\ 

jw Oie.Ptaaacai Tto«, uuu tadet Boose, 

- ■ " HiiMitlil-.IliBB *■ 

• ’. v.;- 

■ , _ _ .T .