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" • No. 27,745 

Wednesday December 20 1978 

Taylor Woodrow 


Ni- I3VS SI MiVt \ 







Mure ilian 2300 uniformed 
police. Are being drafted into 
London’s West End in the wake 
or the renewed SKA bombing 

Scotland Yard said that all 
police leave had been cancelled 
until further notice and officers 
would each be working a 12- 

Policemen have been briefed 
to stop suspects' entering or 
leaving vulnerable areas. Offi- 
cers are also visiting stores to 
advise on security. Page 5 - 

• EQUITIES, ..made 1 .. -modest 
Improvement and . the VT 
ordinary Index closed 2.1 up at 
476.1 in very lour volume of 



Revie banned 
for ten years 

Don Kevie, tiier former England 
soccer: . manager, has been 
banned for ten years by the 
Football Association for bring- 
ing tbe game- into disrepute. Be 
is effectively barred from man- 
agement . in England and Wales 
until. 1987 as the ban is back- 
dated 1 to last year, when he 
resigned as manager to. go to 
the United Arab Emirates. 

Alan Ball, the Southampton 
and former England player, was 
fined £3,000 . by ...the . FA for 
taking an illegal payment from 
Revie some years ago. 


19 78 

Aug Sep Oev. 1fc« Dec 

trade. Gold shares; flisde pro- 
gress an oVemightlTBS demand 
and the rise in the batiion price. 
Tbe Gold Mines index rose 0-3 
to. 1403. ■’ .vli : 

• GILTS recorded, -marginal 
gains in mediums andjengs and 
tte Government Security index 
closed. 0.04 up at 68*68^ /?.' 

Iran ‘shuffle* 

• STERLING xose.45’piSnts to 
$2.0100 but its trade-wrfgbted 
index eased to- 633:^X63.4) 
while the dollar's depreciation 
widened to 9.5 per ceut X&4>. 

Moves are under way in Iraa-Jo 
form another civilian govern- 
ment An announcement ham-, 
ing Dr. Ghohdn Hbssein . Sadiqi 
as Prinra Minister is said to be 
imminent. Back Page . .. . . : r 

Begin explains : 

• GOLD ros S3; to $Jf6J in 
London, and in New York the 
’Comes December settlement 
price was >22030 

• WALL STREET >tosdf234 

up at 789-85. . '” ^ V " 

EEC FOREIGN ' Ministers 
, have- approved a d/recHufe *J w- 

Isj^^ercme-fiGnJ^er Menahcm.. ,| f ^. , /jowii". minhmrir 
Begg? again blamett tbeXLS.^tod for* -.&&• operation oflllfe-’ com- 
Egyp.t -for. -fl»e breakdown of-, panics, a step which to»u» lead 
. peace. t^k9.'Whaa . hie • rajfiemed- . t0 the creation nt a com* on 
to the Knesset (PfiHarneftt) market in' life assurance Wiihin 
why. the. .Cabinet 1 had rejected the Community. Rack Page * 
newEgyptian proposals. Page 3 

* • INDUSTRY’S profitability im 

Sett murders proved , sha^ly in ge early 

' • , autumn by an 13.9 

Stephen Jones, teenage son of per cent rise to £3.51bn between 
the People's. Sect leader Jim the second and third, quarter of 
Jones, has. been . charged with this year in. companies’ gross 
• four, murders in Guyana. Last trading brofite. Back Page 
month, 900 members of the sect - • 

wo® involyedTia a mass murder-' • .UNIT TRUST sales are 

expected to exceed £525m this 
.'year/ an -improvement of more 
than one-fifth on the previous 
Most of France was blacked out record in 1972, although 

for; two hours, as coia^iyeather. .^vember ^es were the 

demand overloaded, the etec- . February at 

trtcity grid. - Transport and,. Tage 5 

hospitals were ■ hit and 
thousands’ of people were 
trapped in lifts. Page 2 : . V 

Healey holds out 

hope of spring 

income tax cuts 


jails Mrs. 



Mr. Denis Healey, the Chancellor, last night held out the hope of income tax j Parliament's Lower House 
cats in the spring Budget if there was no wage explosion this winter. I ^"fririiegi was* 

Mr. Healey said this in a 
special interview on BBC Wales 
television after a meeting with 
the TUC economics committee. 
It also became clear at the meet- 
ing that the Government 
appeared ready to make some 
special provision for llm public 
service manual workers who arc 
now providing the greatest 
threat to the weakened 5 per 
cent pay policy. 

The Chancellor's comments 
oo possible tax cuts come as 
a surprise, since if has been 
widely assumed that the Govern- 
ment will have little or no scope 
for an expansionary bud'|?t 
next year-assuming Mr. James 
Callaghan does not call an elec- 
tion before then. 

The emphasis in official 
advice lias been towards 
restraint, given the uncer- 
tainty about pay and possible 
strains on monetary policy re- 
sulting from the already 'high 
level of public borrowing. 

Only a week ago, the Bank of 
England warned in its quarterly 
bulletin that the Government's 
fiscal and monetary policy 
should have a “ clearly cautious 
bias " as there was no room 
for a faster expansion of 
domestic demand than was 
anyway likely. 

One possibility is that Mr. 
Healey might present a rise in 

personal income tax allowances 
as a tax cut even thnugh such 
an adjustment in allowances in 
line with previous price infla- 
tion — costing about £l{!m — is 
anyway required under the 
terms of the 1977 Finance Act. 
unless Parliament decides 

After meeting the TUC 
leaders, Mr. Healey said that 
pay deals for the low-paid public 
service workers might he 
staged. This was the Technique 
used to pacify other public em- 
ployees in the last wage round, 
although he did not spell this 

NEW DELHI — Mrs. Indira 
Gandhi, the former Indian 
Prime Minister, was sent to 
jail yesterday by the Indian 

The first will take place next j expelled from membership of 

the House. 


The meetings would lead to a 

The voting was 279 for and 

summit in tin.- spring at which } 13S against with 37 absemions 



He said this did not mean any 
movement from the pay guide- 
lines already set down. Both 
.Ministers and TUC leaders 
appeared to have agreed at the 
meeting, however, that some 
kind of comparability exercise 
would be appropriate for the 
public service workers, if unions 
can agree among themselves, 
and employers consent to the 
precise terms of reference. 

Another important develop- 
ment yesterday was that the 'wo 
sides agreed to hold regular 
monthly meetings to review the 
economy, prices and inflation. 

the whole future of collective 
bargaining and economic priori- 
ties would be thrashed, out in 
line with the joint document 
“ Into the Eighties.” 

Proposals for regular monthly 
meetings and for some com- 
parability exercise for low-paid 
workers was conrained in the 
joint stateuent drawn up by 
Ministers and TUC leaders a 
few weeks ago. Both these 
propositions fell because the 
TUC Genera! Council refused 
to accept the statement. Now. 
both have been revived to the 
apparent satisfaction of the 

(mainly by the Marxists 
some opposition members). 
Immediately after the division 
the House plunged into dis- 
order. forcing the Speaker to 
adjourn the proceedings. 

Mrs. Gandhi has been senten- 
ced to imprisonment until the 
session is prorogued. This 
means that she will spend at 
least four days in jail and could 
be there until the end of next 
week, or even longer, if the 
Government decides to prolong 
the session to take up legis- 
lation that has been delayed. 

The former prime minister 
I remained in the chamber after 


It now remains for the four I ? ouse was adjourned, wait- 
unions principally involved in several hours for the 

the public service workers’ 40 I authorities to take her away to 
per cent pay claim to agree how ! l? llm Supporters of Mrs. Gandhi s 
the pay study and a staged deal i 9,°^ e5S K pa Jl7 
would be carried out. j ? lo 3 ans Jacking ber and the 

The National Union of Public ! L ea ?" ( of w the Mr - 

Employees has rejected the idea ! p- ^- Stephen said the sentence 
of comparing these workers' » uould lead t0 her retu rn to 

earnings with their equivalents 
in the private sector since the 
private sector equivalents are 
even worse paid. 

NUPE and the others are now 
talking admit some link with 

national average earnings. 

Unemployment tota 
to lowest for two 



French black-out 

Hospital move 

The Government Is to introduce 
common waiting lists' for 
hospital treatment from early 

• ROLLS-ROYCE, Northers 
Engineering Industries and the 
US: group Combustion 

Engineering have launched a 
joint venture to compete in the 
international nuclear energy 
market with a U.S. design of 
reactor. Rolls-Royce has had its 

- t 

f ? 



? t 


" 'V? 

next year, so .that, everyone best year yet- in terras of sales, 
' win be admitted oh . the basis '*^ 
of heed rather than people who engines worth- more than £2bn. 

can afford to pay being, allowed ' Back Fafie 5 
. to * queue jump.” ' 

v mi * - LABOUR 

Lewrs extension • singer shop stewards win 

Lord Grade, 72year-oki chair' meet today following repeated 
man of Associated Com munica- warnings- from management 
tions, told the Christmas party .that it will close the- Clydebank 
_ he throws each year for jouma- . plant - unless. the 4,800 

lists that he had put-off His employees overturn -their 


retirement from 2000 . : to 

200L Attack on taxation, Page 3 


t , 


decision to reject the joint 
management-union plan to save 
2,600 jobs. Page 7 


- EEC Foreign Ministers 
approved the. opening ef nego- 
tiations over Spain's entry to the 
Community. Page 2 

PresidentBrezhnev of the Soviet 
Union was 73 yesterday. 

Nine guerrillas died in a battle 
■with - Nicaraguan. National' 
Guards. ....... 

Public inquiry is. likely into 
plans to store', nuclear, -waste 
under the Cheviot- : Hills* r 

Fewer people were killed in 
accidents in the UK last 
year. Page 5‘ 

National Union of Journalists 
opened its: appeal against ihe- 
High Court ruling requiring 
Daily Express :’ journalists to 
handle-. Press. Association copy. 
Page 7. • ' • 


profits for the year to Septem- 
ber 30 rose from £1 7.91m to * 
record £22. 4m oar turnover tip' 
£70.32m to; £302. 64m. Page 23 
and Lex. 

£19.3m. bid for control of 
Bushells --- Investments, the 
Australian tea and' coffee group, 

■ has- been criticised as inade-' 
quote by -. Bushells advisers 
Coopers and Lybrand. The offer 
price of 5A5.565 cash has the 
approval of . Bushells directors. 
Bade Page 

tax profits rose 26.1 per cent 
to £14.5m for the half-year to 
October 28 on sales 28.6 per 
cent ahead at £316.4m. Page 
22 and Lex 


(Prices in pence nnless otherwise 

Treasury Var^ 1982 £95*+. *- 

ANZ 312. + 12 

Diamond Stylus ; ... 19 +. 2 

Granada ”A" : 127 .+ 4 

Flysu “......109 

Reliable Pr^s. ...... 3D- +. 4 

Smurflt (Jefferson) lft) + 4 
Wilmot-Breedeii" ... 821+ - 3 } 

Royal Dutch £40i+ 1 : 

Anglo Am. Corp, ... 296 .4-/10 • 

Ashlon Mining .72 +.10 _ 

Bracken Mines ..*.^70 +■ 5*. ■ 

De'Beers Defd. ’ ^ 3^ +&: ■■ 

Kloof Gold 496 jr 23 - 


West Brief omein ... £21 J+ IS 
Western Mining . ... 133 

+ 5 


Anglo- Am. Asphalt 40 

Bishops' Stores 140 

Carpeui lath 36' 

Christy. Bros./ 43 

Clark (M.) 149 

Cullen’s Stores 126 

3CL 436 

MET Furniture 164 

Monk (A.) 85. 

Record Ridgway ... 62 
Sotheby.P, B- ...... 330 



+ 8 


THE-JVUMBER of adults . out of 
work in the UK fell sharply for 
the fourth toonth' running to 
1.32m seasonally adjusted, or 5.5 
per cent of the workforce, in the 
inontb to mid-December. This 
is 18,100 lower than the previous 

Unemployment- is now 114,200 
below the post-war peak of 
September 1977 and the lowest 
for almost two years. 

-.Employment - Department 
figures published yesterday, 
suggest that the rate of decline 
in unemployment has risen 

: In the last four months, the 
jobless total has fallen from 5.S 
per cent of the workforce, or 
by 71,300. This was a much 
steeper decline than in the 
same period last year.-when it 
fell by only 12.600. 

'"There has now been a decline 
in . 13 out of the last 15 months 



Total 1 

h Unemployed 

J- IN 







Staeaadly idjatal 


Vacancies . 

hi uluriinim 

1978 1977 


and the exceptions of July and 
August arc thought to be due 
to inadequate seasonal adjust- 
ments. More than 62 per cent 
of the total' fall in the 15-month 
period was registered in the 

last four months. 

The improvement suggests 
the labour market is responding 
to the increase in the growth in 
output earlier this year. 

This is supported by a further 
rise in the numbers leaving and 
joining the registers, and by a 
further drop in the number of 
jobless school leavers. There 
are now 43,200 school leavers on 
registers — 18,000 fewer than at 
the same time last year. 

However, there was not .a 
corresponding increase in rlie 
number of vacancies notified to 
employment offices. About a 
third of vacancies are notified 
to the offices and they are 
usually regarded as a good 
guide to labour market activity. 

The vacancies’ total remained 
unchanged in the month to mid- 
December at 2314100. This is 
Continued on Back Page 
Regional map Page 6 


Although Mrs. Gandhi has 
been expelled from the House 
— to which she was elected less 
than two months ago — she is 
not debarred from seeking elec- 
tion again. She told reporters 
she would contest the parlia- 
mentary by-election from the 
Chikmagalur constituency from 
which she was recently elected 
and it is therefore a matter of 
time before she becomes a 
member of the Lower House 

The imprisonment of the 
former Prime Minister is 
thought by many to add to her 
strength politically since . she 
now becomes a martyr. She told 
reporters it was clear that 
the- sentence reflected political 
reasons and denied the breach 
of privilege charge. She has 
been found guilty of obstructing 
officials collecting information 
on her son’s car company which 
was needed for reply to a par- 
liamentary question. 

Mr. Morarji Desai, Prime 
Minister, told the House that he 
favoured the punishment meted 
out to her because Mrs. Gandhi 
showed no signs of remorse. He 
j denied that the ruling Janata 
Party was involved in any 
political vendetta. 

The Janata Party was sharply 
divided on the motion ro 
imprison Mrs. Gandhi, but these 
divisions were not reflected in 
the vote. 

Editorial comment Page 12 




. 4 - 

nnor i 


WIDESPREAD central bank 
support in Europe and' the. U.S. 
yesterday failed to prevent a 
further sharp drop in the value 
of the dollar against most other 
leading currencies. 

Strons pressure on the U.S. 
currency became appareut >n 
early trading in European 
foreign exchange markets 
yesterday, following the sharp 
fall in Us value on Monday. 

The renewed weakness of the 
dollar reflects concern iu the 
market about the unexpectedly 
large 14.5 per cent increase in 
oil prices agreed by the nil- 
exporting countries at the 

The oil price decision has 
created the first threat of a 
crisis for the dollar since the 
package of support measures 
announced by the U.S. at the 
beginning of last month. 

Substantial official interyen- 









A $3.8bn balance of payments 
deficit was recorded by tbe 
U.S. In the three mouths to 
the end of September. This 
was $700 m more than the 
April-June deficit. 

Back Page 

tion was needed yesterday 
morning when the pressure on 
the dollar was at its strongest. 
Later in the day trading became 
quieter and the U.S. currency 
picked up a little from its worst 

In early New York trading, 
the dollar continued to improve 
a little, again perbaps with 
some official support. 

The drop in the value of the 
dollar was reflected in a sharp 
rise in the price of gold. The 
gold market has overcome its 
anxiety aboul last night's U.S. 
gold auction: at which the 
Treasury sold 1.5m ounces 
against the previous monthly 
figure of .750,000 ounces. 

Gold hit a best level yester- 
day of $221£ an ounce before 
coming back in quiet afternoon 
trading to close in London at 
$216\, up by S3; from the pre- 
vious day. 

The decline in the dollar was 
reflected in a fail in the Bank 
of England’s index of its value 
from 83.4 to 83.1. 

The dollar was weak aeam'St 
the main European currencies 
in nervous trading, but ended 
the day slightly heller against 
the Japanese yen at Y 193.2 
against Y193.05 on Monday. 

In Frankfurt, the Bundesbank 
was reported to have intervened 
continuously during the morn- 
ing, and at the exchange market 
fixing, . bought 859.35m in 
support of the dollar. This was 
the largest intervention at the 
fixing since late February. 

At Ihtr end of trading in 
Eumm.-. l he ilullar had fa lien 
to DM 1.S420 against DM 1.8583. 

li blsu slipped agauu, the 
Swiss franc lo Swr’r 1.6-i2‘.\ 
compared with SwFr J. 1)5(35. 
One of lhe sirongest Europe;: :i 
currencies was (he French 
franc, which improved to 
FF'r 4.2225 to the dollar against 
FFr 4.2625. 

The pound rose sharply during 
the morning to reach $2.0275 
at one stage, with its trade- 
weighted index improving to 
63.6. Later in the day it cane 
back to end in London at 82.01 
for a gain of 45 points. 

With sterling again not keep- 
ing pace with other strong cur- 
rencies. the trade-weighted in- 
dex eased by the end of trading 
to 63.3 against 63.4 on Monday. 

David Lascelles writes from 
New York: The federal reserve 
board moved yesterday to 
tighten credit in the U.S. By 
intervening in the Fed funds 
market, it appeared to nudge 
the key Fed funds rate up to 
about 10 per cent from the 9S 
per cent level of the past two 

It was unclear, though, what 
new target the Fed had set. 
Many dealers believed the. Fed 
would intervene further over 
tbe next few days to push the 
rate up to 10i or even 101 per 

Although the move seemed 
aimed in part lo counter the 
dollar's decline, domestic factors 
must also have played a role. 
Dealers cited the continuing 
strength of the economy and 
demand for credit, the high rate 
of inflation, and the possibility 
that the money supply is once 
again on the rise. 

Money markets Page 25 

£ in New York 

Dec. 19 


Spot :•£. 01 to- 0170 '52. 002 0-003 5 
1 month '* dia lo. 30-0.24 ois 
Smooths 0.56 0.49 dis 0.80-0.73 Ois 
12 months 2. 45- 'J. 25 alt. 5.T5-3.15 dia 

EEC steel crisis plan renewed 


crisis plan for the steel indus- 
try : has been renewed for^ a 
.further year, in spite of a 
major 'confrontation inside the 
EEC. Council of Ministers. 

: The r6w, which at one point 
threatened its adoption, was 
Over, national aids and subsi- 
dies. These particularly affect 
the UK and Italian state-owned 
steel industries. In a device 
which British officials in 
Brussels last night -described 
as a " breathing' space,” a 
voluntary code governing aids 
has been agreed and will be 
the basis of negotiations over 
mandatory control. 

, :If agreement on an EEC 
formula, con txolliag steel aids is 
iot reached by April 1, however, 
be. whole- question of Europe's 
steel, policy is to be re-opehed 
iri a fundamental political stock- 
taking:. Such a move would 
obviously throw doubt on the 
1979.- crisis plan itself. 

Until the three-month dead- 
line expires, though, the price 
ceilings and production quotas 
of the plan will not be in any 
doubt. The council's unanimous 
adoption of the plan' also opens 
the way for a new set of vital 
external trading agreements 
with non-EEC steel-producing 

This week's two-day council 
meeting, which ended last night, 
also .agreed to tighten the 
application of the external 
agreements limiting steel im- 
ports into the Common Market. 
Attempts are to be made next 
year to ensure that steel imports 
are spread more evenly through- 
out the EEC in order to prevent 
certain member countries, not- 
ably the U-.IL from having to 
take an unfair share of imported 
steel products. 

Difficulties over national aids 
first became apparent last 
month when West Germany 
indicated it might veto renewal 

of the crisis plan, unless state 
financing methods were regu- 
lated in other member coun- 
tries. The Bonn position on aids 
has the Brussels Commission's 

Viscount Etienne Davignon. 
the EEC Industry Commis- 
sioner, the architect of the 
crisis measures, has been 
arguing for greater centralised 
administration of industrial 

But the UK. which had been 
calling for a system— -said to be 
impracticable — under which the 
council would have been 
required to give unanimous con- 
sent to even routine financial 
aids, has apparently succeeded 
in blocking the West German 
demands. In addition to Italy, 
both France and Belgium are 
believed lo back the UK position 
that only highly flexible 
standards can be applied lo 
national measures. 


American News ... 
Overseas News .. 
World trade news 
.UK news — general 
— labour 

, 2 
. 4 

Technical page- - — 

.. 10 
... 9 

2, 3 

... 11 

. 4 

Leader page 

... 12 

. 5-6 
. 7 

UK Companies 


... 23 


International Companies ... 24 

Euromarkets 24 

Money & Exchanges 25 

World Markets 26 

Farming, raw materials ... 27 
UK stock market 28 

President Carter’s nuclear 

policies . 12 

Eorope’s diesel cars gather 

: momentum 21 

.Guinea returns to . the 
French-speaking fold ... 2 

Angola-U.S. relations: The 

need Tor technology 3 

Latin - American trade: 

Colombian eoai viable ... 4 
VA ponders valne added 
tax introduction 4 

Gardens today: Berries for 

Christmas 8 

Australia eases the way for 

takeover 24 


Japanese banking 13-20 



FT-Aeiuarivs Indian 


Shorn Information 



5 . 


Today's Events 


City of London 




Lax — m 


TV and Radio ... 

_ 29 

Building Society 



Crossword . 





.. 32 

Scot. Inv. Trust ... 


4 ■ 


Man and Mansis ^ 


S. Simpson 



_ European Opt-. ..._ 




Woolwich Equitable 




. Saleroom 


Mitchell Somers 




For latest Share Index phone 01-246 8026 

L’Entente Concordia!* 

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Financial Times 



20 ^i^®Vl'. ; V :_ .. 

ewsSs. £ 


PARIS— Never mind where 
Moses was when the light 
went out, I was in the 
Metro. . . . 

Just before S.30 yesterday morn- 
ins the whole Paris under- 
ground network came to a 
halt, passengers made their 
way to the surface in the dark 
and . the taxi supply was ex- 
hausted in seconds. 
f ’ They’re on strike," said a man 
, who had got half way through 
‘ re-filling a sweet-vending 
machine. It was a good bet. 
1 but the next round of strike 
action was not due until 

The great black-out. it trans- 
pired. had hit a good three- 
quarters of France in the 
space of a few minutes. Paris 
: was cot fully back in business 
until the afternoon, and the 
EDF electricity board warned 
there might be further cuts 
in the evening. 

While Christmas shoppers in 
Paris were fumbling in the 
dark, and b3rs served the 
first aperitifs, by Candlelight. 
' the east of France, where 
according to the EDF the 
: chain of disaster began, was 

• going strong on , imported 
current from West Germany. 

Lyon, Marseilie and the west 
of France were deprived of 
electricity, while the nurth, 
south-west, parts of the south- 
east and areas of Switzerland 
; and Belgium suffered partial 

Police and firemen were 
deluged with . calls from 
hui Idings svhere lifts had 
stuck or hospitals which had 
. no private generating 

The power failure was com- 
. pared with the day in Novem- 
her 1965 when lights 
: throughout the east coast 
area of the U.S. went out. or 

• the New York black-out of 
: July last year. 

The EDF said it happened 
: because of heavy demand. 
;• caused by the onset of cold 
»"• weather, and overloading of 


Qualified go-ahead for entry talks 


BRUSSELS — EEC Foreign meat, due to be held in early months is genuinely needed to to Greek woricers of the right 
Ministers yesterday ' gave their June next year. prepare the negotiating dossiers, to move _freels ground the lEEC. 

Britain, by. contrast, has been 

modified aDDrdval to the ooen- The European Commission the EEC did not insist on . -- ... . , ^ , 

■ of negotiations with Spain has already warned that agricul- ^drngasp^ reference to 


on its application to become a tural regions in the South and a delay in its response to either bo pore five 

fSl memberof the Common ‘ SoufliwSrt France will suffer toe Greek or Portuguese appli- with the desires of the Greek 
Market economically from Spain's cations. Government itselt. 

ThPv agreed that a 'formal entry - and ? i3 p0 L nt £ Meanwhile, the EEC was pre- Greece has expressed bitter 

ceremonv^ikina the Sfi t0 seized on by President paring for what promised to be disappointment at the propolis 
ceremony, maria ii* tne omciat Q, scan j d’Estaing’s critics in the rfifficixlt meeting with a high by the European Commission 

held in f the fiS ouartCT ofn^ Gaullist and Communist parties. Iev - el delegation from Athens for transition periods of seven 

war Srebablfin Febre^y But ' 3ev ? r ^- ^ today, at whieh tfc post-acces- years for most agnnilturalpro- 

ycar. prooaojy in reorujiry. men ts. including Britain, are sion transition periods for ducts. Last week. Mr. Konstan- 

FranL thev took the openIy S onCeroed that France s Greece’s agriculture aod social tin Kara manlis. the Greek Prime 
SUfS' that n n reservations run much deeper. sectors were due to be dis- Minister, called in ambassadors 

£ 6P 1 ^ ° “ d «»at they may have banded of the Nine and handed them 

the substance of the application it a weapon which could be used v„ t . 

Yesterday evening; officials of a letter to their beads of govern- 

should begin only when Spain t0 postpone Spanish entry for a th^ "Nme ”we're "sUlT struggling meat, urging them to improve 

common ^aris ^for^cwgotiSiotL C 01 gf « “}Sd Britain’s « overc0rae ***** 1116 Commun ^ s offer ’. 

France's motives undoubtedly Mi^er ^State aMhe For^n 5 JSSlAb? ** “EES:? 

have to do partly with fears £ Office, who opposed the French EEC offer should be. SZTrSl’ 

Paris that Spain’s prospective move, said after the meeting . France was pressing for an that Greece mi^t be prepared 

membership could become a that it was "quite dear” that eight - year transition period T°wardstfae 

politically sensitive issue during France was trying to delay work for Greek agriculture, while Community position by propos- 
es national campaign for direct on Spain's application. Germany was insisting on a ing manmum transition periods 

elections to the European Parlia- While a period of several similar period for the extension ot six years. 

Council seeks fresh discussions on budget 


BRUSSELS — The EEC that further negotiations are until the end of January to find that made it impossible for the 
Council of Ministers has being sought a compromise. council to cut the budget hack 

decided to seek fresh talks with appears that the possibility For, accor din g to practice, to the ££-2bn first envisaged, has 

of a compromise that would EEC member governments sub- already raised fears that nest 

the European Partiament to tiy aV0 id a damaging constitutional scribe C n January 1 to the New j une ’ S direct elections to the 

thp nolitieallv- , YT . ~ , senoe on janu<vy i iu uic new June s direct elections to me 

- r toe s ^ ze °f toe Parliament was first raised ^ i.-_. «h A Parliam .ot could b com- 

to sort out 

So^rJm^nniiv^hnd^L^ Parliament was first raise? spendlng deC ided by the Budget promised. 

19,9 commumty budget. through an informal approaen cmincil It is not until the end i .. * _ 

Following what .was. in to the Council from Sis- of January! therefore, that they .Rf: L^n stei p commented last 
practice, an extraordinary Emilio Colombo, the Parlia- -would be acting in defiance of toat while the council 

session of the Budget Council, meat’s President. ,u_ h» m +n wa s not trying to cut back on 

session of the Budget Council, ment's president: fh „ parliament by refusing to “J 1 ”* tu u “ 

hurriedly called to discuss the The two sides in the budge- , ncrease the level of payments. Parli ament s powers, it had 

Commission’s opinion that it tary row, which revolves chiefly been noted that the European 

must implement the Parlia- around the Parliament's The European Parliament’s MPs have themselves been 

! menl s enlarged £9.2bn budget, attempt to boost next year's determined stand in Luxem- refemng of late to the wider 

Dr. Manfred Lahnstein, the regional fund by more than SO bourg last week, in which it political implications of the 

Council president, announced per cent to £693m, now have took advantage of a technicality dispute. 

Turks press Sweden ou N-deal 


STOCKHOLM — -During a two- ploit its own substantial deposits ASEA, the heavy electrical 
day visit here, Mr. Bulent —but has undertaken to act as group, has so far won orders 

for only two power plants out- 
side Sweden, both .in Finland. 
Its future is in some doubt be- 
cause of the possibility that 
Sweden will build no more than 
the 11 or 12 reactors already- 

The potential Turkish order 

= • a high-tension line bearing 
£ power from the east to the 
; Paris region. , The 400.000 | supply of uranium. 
■■ volt line cut out. causing a 
lowering of tension through- 
out the system and a series 
[ of failures \,hich brought a 
• large part of the network 
down like a line of dominoes. 

The EDF said it might have 
. to relieve the load by making 
further selective cuts when 
. demand reached its evening 

Trade unions took advantage of 
i the incident to belabour the 
;■ Government’s energy policy, 
i The biggest, the CGT. which is 
\ organising a day of industrial 
\ action on Thursday hitting 
; railways and power services 
i once more, said the break- 
; down reflected- inadequate 
facilities. • 

Its rival body, the CFDT, 
blamed the Government for 
concentrating on nuclear 
energy at the expense of 
- building enough traditional 
. power - plants. 

Cafe gossip was. of course, going 
at full voltage. Some were so 
; unfair as to suggest that, what 
i with the Government renew- 
ing its appeal for energy sav- 
■ ing and what with the OPEC 
r price increase, other bands 
than those of chance might 
have been at work. 

Chirac bid 
to cool 
RPR row 

By Our Own Correspondent 

PARIS — M. Jacques Chirac, 
leader of the Gaullist RPR 
party yesterday set out to dispel 
the storm of controversy sur- 
rounding his leadership by re- 
assuring the Government that 
the Gaullists would not seek to 


Ecevit, Turkey's Prime Minister, broker with a third country, 
has been discussing a SKr 5bn Most of ^ uranium f or 
t$1.13bnl nuclear power project Sweden’s own reactors comes 
with the Swedish Government from ^ u s . th e main riva ls 
Air. Ecevit has said that t0 ASEA-Atom for the Turkish 
I Sweden s ASEA-Atom and Stal g^ d g r are American and Italian. 

‘ Laval companies are well placed _ _ . . „ „ . . . 

ro win orders worth SKr 2bn- , Sw edes have emphasjbed 

SKr 3 bn for Turkey’s first “ at 110 e^P 01 * permits for tor aweaisn nuciear equipment 
nuclear newer station hut that ““clear equipment can be gran- has aroused some opposition 

Turkey tSS^also have’ eeneroSs ted until Turkey has signed the here. Mr. Thorbjoera Faelldin. undermine its majority m 
, nuclear “on-proliferation treaty the former Prime Minister, yes- ; iNational Assembly. 

and agreed to international con- terday criticised th& minority 
„ ^ trol of its nuclear progrwime. Liberal Government for agree- 

The Swedish Government is a BUI providing fur Turkish j n § to provide export credit 
willing to guarantee export adherence to the non-prolifera- guarantees, and a ‘small group 
credits for 80-90 per cent of the tion treaty has already been sub- from the People's 'Campaign 
Swedish deliveries but Turkey mitted to the Turkish Parlia^ against Atomic Energy demon- 
will have to raise finance for the ment. Mr. Ecevit has explained, strated outside the Foreign 
remainder of the project ASEA-Atom, the nuclear reac- Ministry, when Mr. Ecevit was 
Sweden cannot supply uranium tor company which is owned being entertained to dinner 
— it has not yet decided to ex- half by the state and half by there. 

Q France's oil import bill next 
year will rise by FFr 6bn 
(£705m) as a result of the 
14.5 per cent oil price increase 
decided by OPEC. M. Ray- 
mond Barre. the French 
Prime Minister said yester- 
day. This could bring the 
French uil bill to nearly 
FFr 60bn in 1979, according 
to independent estimates. 

M. Barre added that he expected 
French fureign trade to show' 
a FFr 3bn surplus in 1973. 

Lisbon meeting 
on Cuba’s 
role in Africa 

By Our Own Correspondent 


LISBON— -Talks about 
Cuban presence in Portuguese- 
speaking Africa are expected to 
take place during the official 
three day visit here by Sr. 
Carlos Rafael Rodriguez, Cuba’s 
Deputy President, which started 

Sr. Rodriguez will have two 
meetings with Portugal’s Presi- 
dent Gen. Antonio Ramalho 
Eanes as well as talks with 
Prime Minister Carlos Mota 

This is the first official visit 
by a Cuban leader since the 
revolution four years ago and 
diplomatic sources say that the 
Cuban presence in Angola and 
Mozambique is certain to be 

Meanwhile. Dr. Jacinto Nunes, 
Portgual’s Finance Minister, has 
denied reports of an imminent 
currency devaluation follow- 
ing OPEC’s decision to increase 
oil prices: Dr. Nunes said the 
escudo would continue its 
crawling peg devaluation of no 
more than 1.5 per cent monthly 
in accordance with the IMF 
agreement signed earlier this 

Cautious line by. Moscow 
on U.S.-CMna agreement 


THE SOVIET Communist party nology and the readiness to 

newspaper Pravda, in the first 
semi-official comment on the 
establishment of diplomatic 
relations between the U.S. and 
China, has criticised China but 
emphasised that President 
Carter has said the U.S. does not 
want to use its new relationship 

satisfy Peking's military appe- 

The strongest reaction so far 
has come from the Czech Com- 
munist party newspaper Rude 
Pravo which described the 
establishment of diplomatic, 
relations as ” an alliance of 

with Peking to the detriment of the most reactionary forces in 

the Soviet Union or anyone else. 

“This is a very important 
statement," Pravda said. •• and 
time will show if these words 
accord with practical deeds and 
political actions.’’ 

It noted, however, that 
“ Peking is in no hurry to accept 
the American interpretation of 
the accomplished event ” and 
warned that the Peking leader- 
ship had “ embarked upon a 
road of open antagonism against 
the world of socialism and 
alliance with the most bellicose 
western quarters.” 

Pravda added: “W r e must be 
wary of Peking’s desire to enlist 

the contemporary world — 
Maoism and imperialism.” 

Yugoslavia by contrast bailed 
the agreement as a “contribu- 
tion to active peaceful coexis- 
tence among peoples.” 

— Meanwhile, at a special 
ceremony in the Kremlin 
yesterday. President Leonid 
Brezhnev was awarded his 
third Gold Ctar of Hero of the 
Soviet Union and his sixth 
Order of Lenin to marie his 
72nd birthday. 

AP adds from Moscow — Two 
days before he is due to meet 
Mr. Cyrus Vance, the U.S. Secre- 
tary of State, Mr. Andrei 

Western support for its hege- Gromyko, the Soviet Foreign 
monistic plans. This refers Minister, said he hopes their 
particularly to the unusual Geneva negotiations can find 
interest now evinced in some “mutually acceptable solu- 
Westero countries for Chinese tions " to conclude a strategic 
orders of weaponry and tech- arms limitation treaty. 

His open letter to M. 
Raymond Barre, the Prime 
Minister, effectively renews the 
parliamentary truce which the 
Gaullists offered their -. centrist 
partners in October and which 
appears to have been com- 
promised by M. Chirac’s recent 
attacks on the Government’s 
European poLicy. 

The RPR, M. Chirac said, 
would not take the initiative of 
calling the Government’s exis- 
tence into question which 
meant through a censure 

motion in the next parliamen- 

tary session. 

The Gaullists had done 

nothing to stop th<t Govern- 
ment’s general economic v»d 
social policy, succeeding, 

although M. Chirac found “un- 
certainties and insufficiences” 
in it and cast some doubt on 
whether it was effective. 

He repeated his “very acute 
apprehension " about the ftore 
of France in Europe. But the 
RPR planned to bring its cam- 
paign home in the European 
Parliament ballot in June 
rather than in the Assembly. 
The message, phrased with the 
utmost courtesy. contrasts 
sharps with the bitter attack 
made by M. Chircac two weeks 
ago. which provoked sharp' 
reactions even from some of 
the most anti-European mem- 
bers of his Party. 

No ruling on Aegean 

The International Court of 
Justice in The Hague yesterday 
disqualified itself from jurisdic- 
tion in the Aegean oil dispute 
between Greece and Turkey, AP 
reports. The court did not 
accept the legal basis invoked 
by Greece in asking it to de6ne 
the Continental shelf limits in 
the Aegean. 


fails in 

By Adrian Dicks 

BONN — A fresh attempt' to 
settle the West German steel 
strike, now in its ‘fourth 'week/ 
came to nothing on Tuesday 
afternoon. Herr Friedhelm 
Farthmann, the North Rhine- 
Westphaiia State. Labour Minis- 
ter, who has been mediating 
between the two sides, said he 
could see no basis for a solution. 

The meeting was called- at 
short notice, and took most 
observers, by surprise.. On Mon- 
day, fte steelworkers’ union. 
IG-MetaU. had formally rejected 
a proposed compromise on the 
issue of a shorter working week, 
leading the employers to warn 
that the compromise was 
an all-or-nothing package,- and 
forcing Herr Farthmann to give 
up the formal role of mediator. 

However* all parties had 
agreed to meet again If neces- 
sary, and on Tuesday morning 
hopes were running high that 
the employers ‘‘might include a 
few more of the 300,000 workers 
in the region concerned In the 
proposed deal. No further offer 
was forthcoming, and the stem 
industry federation warned that 
it had already gone to the limit 

Despite warnings of widening 
the dispute. IG-Metall appears to 
have agreed in effect to discuss 
the deaf it had rejected oh 
Monday. The key element in 
this would be to give worke rs on 
unsocial shifts four extra paid 
free shifts in 1979, rising to 6i 
in 1980. Today. Herr Eugeu. 
Loderer, the IG-Metall Presir 
dent, appeared chiefly concerned 
to broaden the number of men 
in the industry who coufd 
benefit from this arrangement. 

Under heavy attack from most 
of the Press, as well as the 
employers’ spokesmen,- the union 
seems tacitly ready to admit -It 
cannot push its demand for-'* 
” first step ” towards a standard 
35-hour working week any 
further in the steel industry 
without being willing to see the 
strike continue a good - deal 
longer. , . 

However, from a psychological 
point of view the union may now 
be more anxious to get a. settle- 
ment before the Christinas an<T 
new year holidays than the 
employers, who have so far been* 
able to go on meeting a good 
part of their deliveries from;] 
stocks and who may prefer to, 
wait until next month to bring 


Health Office : 

bans clofibrate 
heart drugs 

By Leslie Colitt 

men in 


REMEMBER before New Year « 

the same time he admits men: dosed rinemas.. “Big fire, big 

osot. Sou 

’ nt wao+trm . estates.,. of company .houses of. 

of Iran, a consortium of Western. : ^Tvv,, 

are leaving Iren- 

vided by the Iranian Army.. ^ .the ‘technically quali- 

OSCO employs; ' about 4J>00 ffedA middle-class workers, Who 
Iranians oh its staff and over, are the most' politically- moti- 
600 expatriates. , In addition’ vated. , .. . " 

there are about 8,000 daily paid ' Ai one point last month pro- 
Iranians. . V- . " v duction -was down’to about -60 

Production has riseh r^ixr per: cent hC tiM iinftmal 50Q;GQ0 
last few days, as the mintary- barrels a day. " NoW it Is very 
led government has. announced, near .'fhat' figure • X>ixt; lit ; to hot 
deterrent measures _ against clear whether this is so because 
those who_ work slow inrf Out pay day. is appro acfiiflg or' the 
in the oilfields of the Khuzestan company has threatened to sack 
region foreigners still . torep. a ; :e mpIoyees who .da not. work a 
low profile. The mere sight of a. full day. v 

European has.. been sufficient,- ' - Sitting below ^picture of the 
L executives say, to cai»e woA Stiah, •«' ; :cmnpa^iy : -tBPwestnan 
1 to stop completely. . ' ; ‘ ‘ says an r imi»xivement'of' prtjdnc- 

the blast furnaces back to fulL j The group which perpetrate tioh Is yv*at all the employees 

BERLIN— The West German 
Health Office has ordered 24 
pharmaceutical companies _ in 
the country’ to halt distribution 
of drugs containing dofibrate, 
a substance used to reduce tbe 
level, of blood fat in heart 
diseases, on the grounds that 
It may have Harmful effects. 

The ban, which takes . effect 
on January 15, is the most wide- 
reaching since a. tougher West 
German drug law was enacted 
in 1976 in the wake of the 
thalidomide scandal. Some 37 
proprietary drugs manufactured 
in West Germany fall under the 
ban against which the drug 
companies may appeal. - 

Tbe Federal Health Office 
has given them until mid- 
January in order to allow time 
for changes to be made in the 
interests of patients. 

The office says a “ well- 
founded suspicion ” that clofi- 
brate is harmful has arisen 
following large-scale tests car- 
ried out in co-operation with 
the World Health Organisation 
at research laboratories in 
Edinburgh, Prague and Buda- 
pest. Patients treated with 
clofibrate had a higher death 
rate than groups whose high 
blood fat levels were not 
treated with the substance. 

Death from heart attacks was 
not found to have been reduced 
by talcing clofibrate drugs, and 
was said to be higher from liver, 
gall bladder and digestive ill- 


Guinea returns to the French-speaking fold 


THE BLACK sheep of French- tion in the Ivory Coast at the Liberian capital, Monrovia, nine have mooring rights, however, colonial position as Guinea's French President's visit has on 

speaking Africa marks its beginning of the year, gives the months ago. Without this. M. supply the Guineans with tanks, main supplier. the troublesome question of 

return to grace today when French a chance to show that Giscard d’Estaing s visit would MiGs and a reduced number of Western international agencies human rights in M. Sfikou 

President Valery Giscard their Africa policy has facets have posed problems. military advisers, who are -1=0 zainin® Influence in Tourd’s Guinea. Guinea is con- 

d’Estaing of France lands in other than Jaguar aircraft and Guineas flirtation with the supplemented by Cubans. ruinpa which fn Knife nf an servatively reckoned to have 

Conakry, capital of Guin?a. paratroopers, which have given West develops in inverse pro- Tfap Guineans ar£ alsQ extraordinaiy weSth of 1-000 political prisoners, three 

He arrives with a strong team France the most conspicuous portion to the warmth 1 of its believed to be unhaonv with tbe minerals figures in the list of 0r fo “ r times number 

r Ministers and an apparent military presence in Africa relations with the Soviet Union, nualitv and cost of 2ri fhev the world’s least developed ^cording to Amnesty Inter- 

atermination to patch up what behind that of Cuba. Unlike Cuba with which it has Suntitol aeveiopea national an OISani5at ion which 


determination iu paitu u H »uu«. muiuu utai ui v-uoa. . «««• «»., n.«. — ** — ■ receive from East*™ Fnmv countries - 

is now referred to as the “mis- France’s reconcUIation with dose Ties, Guinea was never They are w fished do wn K ♦« th- w«t M - Toure has publicly 

understanding " between France President Ahmed Sekou Toure entirely in the Russian camp, heavy civil and militarv d<»hr to overtu ^* s execrated, 

and her former colony, which of Guinea has been carefully Bat the break with France and M received a Tad deal S ou d b , e “SPUi 1 The " leading Paris-based 

has nevertheless lasted for 29 rehearsed. The French Presi- hostility from its moderate J" S a v i et i n vo 1 vpra p n r ir, ihe St- » le jJiS Vk?« African magazine Jeune Afrique 

the President!*. S£m Mpers. 'STteS «» *»* •« Unity, was starved to death in 

spokesman spelt out the other tions three years ago after a “d the Czechs are now clearly The search for the • West’s 51000 earl > iyws - tbe notorious Canip Boiro in 

day, is ready to co-operate. 10-year gap which followed ou t of favour. good favour began in 1974, President Giscard February of last year. Guinea 

The last French President three successive charges by the French diplomats trace this when Guinea normalised rela- d’Estaing’s Africa policy in- has since expelled one of the 

there was Gen. de Gaulle. He Guinean regime that France <* an S e » f attitude to both tions with West Germany, it tended to shore up friendly magazine’s journalists and 

left in a huff in August. J958, was plotting to overthrow it political and economic reason- adhered to the Lome Conven- “legitimate" Governments can barred another from covering 

a month before Guinsans were That period of fitters is now in g. Guinea showed last year it tion in 1976. The conciliatory be seen as parallel to that of tbe French President’s visit 

to vote massively in favour of over and Guinea is moving out was not ready to be used again efforts of the French Embassy the U.S. Administration. France Guinean exiles in France, part 

their country’s opting out of of its isolation from the West, in the same way the Russians in Conakry have helped bring intervened in Zaire’s Shaba of an estimated lm or 2m. who 

the French West African Most important President and Cubans used it as a base a series of contracts for province earlier this year, and have left Guinea since indepen- 

r nmmnnitv Sekou Toure has buried the f °r operations in Angola. II French companies, and Western has tried to resolve the con- dence. have pressed M. discard 

Guinea Vs the onlv French- hatchet with Ms neighbours ended the Soviet Union’s port groups, including French, are Jicts of Chad and the Western d’Estaing to take up the human 

sneakin" country ui Black President Leopold Sedar and airfield facilities and shareholders in two major Sahara. French reconciliation rights issue; ' Some prisoners 

Africa with which France has Sengbor of Senegal and Presi- stopped Russian Topolev air- bauxite ventures and the with Guinea follows the . same have been freed in recent 

not had normal political dent Felbr Houphoaet-Boigny of craft from carrying out Sou;* Nimba iron ore project on The principles. months and the French clearly 

relations M Giscard d’Estaing s the Ivory Coast, in an unprece- Atlantic reconnaissance from its Gu.nea-Libena border. France It will be interesting in this hope The visit will have a posi- 

iisit lowing htawimweJp- dented mini-summit in the territory. The Russians still has recently regained its context to see what impact the tive effect. 

a fire bomb attack a month ago want. It is not because the mili- 
on the car ia which the ..General ,ta^ : i5 makhag peopl& WOTk, he 
Manager wi^a : .i»ssengfer is Still saySv tIiat. everyone- is . woriahg 
unknown. . 'but... every OSGO. vduhtaiy; overtime tb .get wo- 
fofmgn f .„empIo»e».; _feeU . 4ucti56tt, barit : £» noymaL . ^ But 
marked man^.: V '■*. . is 'it .'possible to jiave a short 

There is a\Scorpion tanh dr trip ; around the .refinery to 
1-an armoured ear and truck, of see ;, everything; • rupitihg : - so 
soldiers on moSJ crossroads to smootljly?” . No, everyone 
tbe town, in greater strength at who, would be' needed to 
potots where therAis a static b f . organise sm* h trip js just tod 
the Shah or his fatter which, has busy Iseeing that jJTOduction is 
not yet been pullecLdOwn. The fefmer .increased.?; - ’* 
railway bridge is covered with ^he.affiool teacher outside the 
stencils of the face of the <dnema- '/.claims, ■ the ■ refinery 
Ayatulliili 'Khbmeini, ^ie exiled Workers, ' are ' having bayonets ~ 
religious' leader whose utter- prodded - into their b acks. With- ' 
an ces ^eem to dictate every out the jtrto. neither view seems 
event and every convers5jion. a fuliy satisfactory explanation; 

The man at OSCO considers V There appears no reason to 
he is facing a movement %hich doubt -that sShdlar k anti-Shah 
was origtoally about squabbles feelings, and confusion permeate - ' 
over pay differentials and is how otter Iranian Gulf towns — the 
well organised because of*-, a terminal, for refined. " products 
common ambition, to rid the from Abadan at . Bandar a 
country of the Shah. He doubts Shahpur 90 miles tit the hast, 
that the movement is ' pro-v or the crufie-. terminal .on the 
Khomeini to the extent of want- \ island aLKargb. 'At one point 
ing an Islamic state, or that any Mast week crude exports from 
political parties, semi es t a b l i s h - there were down. to. 600,000 
ment or underground, Have barrels a day, one supertanker 
much of a Say ip tactics or can l$ad from a termihal^hich can 
even manipulate^ ^what happens. _narpiaUy ,-,talfev . ^fiiips at a. 
next. . .. tin®,. 1 . - 1 Co. .v" '" 

Australia air strike hopes 


SYDNEY — A compromise-threatened: 7 disruption for 
wage ruling by Australia’s: thousands of holidaymakers 
industrial tribunal, the Arbitra- over the • Christinas • period, 
tion Commission, is expected to , Quantas " .flight*., yesterday 
resolve a dispute whidi has^ suffered - delays' and" ' three 
disrupted domestic and ; infer-; flights, out of the coontry had 
national airline flights through- to be rescheduled. — • ■■■ 

out the- countiy Gnmndstaff, • Renter adds from Wellington... 
who wMked off the job at the Mr. Robert Muldoon, the New 
weekend, will hold meetings Zealand. Prime Minister ' 
today and are expected to vote . had his parHa&entary majority 
/or immediate resumption.' of _ increa^d^. t0 T eight - when 
work - • . a recount -.gave a seat -to 

The dispute arose after : the . a candidate who hadlret in the 
full bench of the Arbitratioir. 'fiEst tally-of votes cast hr New 
Gommiaion made a ruling " Zealanif'a'Noveniber 25 general 
which reduced pay rises granted^ election^;.. ."-7 , ^ 

by one of the commissioners to 'The? recount reinstated Mr 
some airline workers. - The Bariy> Brill MP in the- Kapiti 
ruijng fdCowed an appeal; by constituency" of " the ■ north 
the nation’s international island, but opposition'' -Labour 
carrier, Qantas, and the two Parly candidate . Margaret 
domestic airlines, Ansett and Shields indicated L she ww|d 

Trans Australia Airlines, over appeal to- ah electoral couirt - 
tbe\sire’qf the wage increases. With;, tite ; .vecomfc: Jir. 

The taxi, driver on. the two- 
you^must leave the country 7* hour drive’ througii the-<tosert 
reads the note pencitied in largfe. to . Abadan is firmly ' anty Sh^. 
block letters on a piece. o£. lives, a mosque-oriented life, 
foolscap- and ieft on the desk of mistousto foreigners, bnt Dstems . 
senior expatriate oil executive to the roi^' toti^-Tprogran^- 
i n Ahwaz during the lunch of Radio . Abadan during .the • 
boor. ' jQiirnfy,~ He apparently ;feels 

Per UinNit he an a great 

Ees S “» £ZZSZ £«. of rn ss 

on contracts uoder him: Me jost. ^ tK -vnag^t 

not renewing them when they one ^ p atticitiari^ -devastated 

expire. Ten have come .to his warning ^ -^ 7 ; -71* 

office in recent weeks and asked A Quttide .t he^R dx jCxnema w 

for guarantees* of security tiiat - ca ^ s -^? 

he iust could not gave— An • ateiut ‘4WT deatos m .Augustv-a- 

undisclosed number of ;<rthers seb® 0 * 

did not even come to hfr'office- ’ ' 

on refflHninc • tion to describe what ne feels 

Oil towM like Ahwai - and -is going 6n7 “WeWant freedom 
Abadan , S'.,SreS; of speegh; we: want dtemocracy,^- 
sent Iran's nost ordsoeritv end expressing, a teas to- 

world’s largest oil producer. ^ xfcn&nhdbic; 

Sipwbnie system is beihe reflnejcy T there is manned 

silent and anonymous protesters ^ . 

vtiii -T 


^HE 20 





:.v J>C; Op e 

^16 strike farced tbe airlines Gffverninait- iiasv SO 

to reduce flights to a skeleton aeats -in the House V<ff 'Repre- 
service as fuel began to roii^ ‘7 sentativea to 41 for labour and 
out at all major airports, and; one for the Sociai Credit Pariy. 

'i ^ ri 



Good . news; for Third World! 

UNITED NATIONS—The UNJ ■- Another Idraft .-al^:endar«:a • % ^Vfjt u 
Gmieral lAssemb^r last night by cohsehsus.anvited'tlemcri- - ‘ 

affirmed the need to establish . tary-genera]^ to ’ hoM ^qpsutia-- . W'*! =2% .. 

redress >y&fit they f eel- fr> be.4he- J 
preponderant ~ — * 

Western news 
Mr; . Kurt Waldheim. 

Secretary .General was askedrto-:- . . 

especially the UN Educational; 
satlon- (UNESCO)-- 

role played by catton-aystesns.-.-I' -'i ^ : i.:; * 1 

media.- ’ - - Seufer^- 

IMl Ufoc I Ti M |T~1 - • - - • ' • -r -. . 


Wefeesday. December 20 1978 

f ; 




J OHA NNESBURG — .Tb e~ like- 
lihood ot formal diplomatic rela- 
tions being tween . 
the U.S. and Angola in ex- 
change for Angolan support' for : 
the Western peace initiatives in 
Rhodes La and ■ Namibia, has - 
come appreciably closer follow- 
ing ■ a. spate, .of top-level U.S. 
missions to that . country in 
recent weeks. 

In particular there is a grow- 
ing' feeling within -U.SL and 
Western diplomatic circles that 
the ‘ withdrawal of .Cuban troops 
from Angola should no,, longer, 
be regarded as a precondition 
for that recognition, j • 

The Angolan i 'goyernmeht ' 
clearly see? 1 diplomatic recogni- . 
tion as linked to substantial 
Wesfemtechnological assistance 
In its development plans, as 
well as a final endorsement of its 
legitimacy is the wake of the 
Angolan civil war. 

In a major speech in . the 
Angolan capital of Luanda this 
weekend. President Agostinho 
Neto said his MPLA Government 
was prepared to' establish 
friendly relations -with any non- 
socialist . country, -because, it 
realised the need for relations 
with other countries which 
could “ supply Angola with tech- 
nology essential for her develop- 

He also said that private 
enterprise and private initiative 
“ did not necessarily; clash with 
the revolutionary principles of 
the MPLA,"- according to Radio 
Luanda, monitored here by the 
South African Broadcasting 
Corporation. • 

But President -Neto, address- 
ing a party rally to mark the 
end of the MPLA anniversary 
celebrations, also insisted that 
his Government was not pre- 
pared to accept “ terms imposed 
by other countries as .pre- 
conditions far the establishment 
of normal relations” — such as 
withdrawal of the Cubans and 
a reconciliation with the rival 
Uni la nationalist movement. . . 

His speech is seen as signifi- 
cant for Western investors, as 
it follows the recent announce- 
ment that Angola is - to open 
negotiations with international 
oil companies for offshore 
prospecting rights. He told the 
rally that not only oil, bat also 

.the exploitation and .treatment 
of other minerals should, be the 
“ next step ” in 'development. 

last week both Senator 
George McGovern, the .prospec- 
tive chairman', of ., the: sub- 
committee on African -affairs of 
the Senate Foreign Relations 
Committee In Washington, and 
Mr. Stephen Lowi- .ihe. .U.S. 
Ambassador in Lusaka, and 
special Rhodesian envoy, were 
in Luanda. Shortly before that, 
Mr. Richard Moose, -the UR. 
Assistant Secretary of State for 
Africa, and Mr. Don McHeory. 
the Deputy U.S. Ambassador to 
the UN and principal negotiator 
an Namibia, held tails with 
President Neto. . ..v' 1 ' 
Angola’s role -in : . the con- 
tinuing efforts for si- .peaceful 
settlement in Manubia is seen 
here as particularly crucial in 
the wake of the-' unilateral 
South African-controlled elec- 
tions held in the territory this 
month. I;. -- - . 

There is still no guarantee 
that the South African Govern- 
ment will persuade the’ consti- 
tuent assembly elected in that 
poll to opt for a seccmd'round 
of UN-supervised : . .elections, 
which would include fee-'Soufe- 
West Africa People’s. Organisa- 
tion (SWAPO), the "principal 
black nationalist movement, and 
the Namibia National ; Front, 
which also boycotted the- latest 
voting. . However, Mr.-}?. W. 

Botha, the South African 
Prime Minister, and.- Mr. PiX 
Botha, the Foreign Minister, ore 
to meet the assembly this week 
as part of their agreement with 
the Western powers to use their 
best offices to persuade the 
“Internal leaders” to opt for an 
internationally-recognised solu- 
tion in the territory. 

Western sources here now 
fear that SWAPO could Itself 
be discouraged from going 
ahead with a UN-supervised 
election, as it will now be fight- 
ing a party firmly established in 
power by South Africa. Both 
South Africa and the Demo- 
cratic Tumhale Alliance, which 
dominates the constituent 
assembly, are still talking about 
the elections only being held 
under “acceptable conditions," 
which could prove unacceptable 
to SWAPO. 

President Neto has repeatedly 
voiced his own concern about 
the activities of South African 
forces on bis southern border, 
and the prospects of a .solution 
in Namibia which would 
stabilise that area have been 
heavily stressed by his U.S. 
visitors. Thus he could yet be 
instrumental in persuading 
SWAPO to stay with open elec- 
tions under UN auspices, if 
there is any inclination from 
the SWAPO leadership to 
change its mind. 

In return he might expect two 
rewards: UR. recognition with- 
out Cuban withdrawal and do 
facto Western recognition for 
the existing SWAPO leadership 
of Mr. Sam Nujoma, rather than 
any attempt to back the break- 
away faction represented 
primarily by Mr. Andreas 

The Constituent Assembly, 
elected in the disputed South 
African -sponsored elections in 
Namibia, will meet for the first 
rime today. Judge Marthinus 
Steyn, the S. African Adminis- 
trator-General in the territory, 
announced in Windhoek. 

Mr. P. W. Botha, the S. 
African Prime Minister, and Mr. 
Pik Botha, the Foreign Minister, 
will address the assembly on 
Thursday on the issue of 
whether or not to agree to a 
further round of UN-supervised 

Industrial reforms in Zambia 


LUSAKA— -President Kenneth 
Kanzzda has announced;# series 
r . refonns -to ’’ .the Zdmbifl 
iTidastrlaTand Minirig Corpora- 
tion .'IJSmcoK designed to 
improve the - running of. the 
state-owned industrial and com- 
mercial sector which frequently 
has been accused of. inefficiency. 

'.Zimco, with a turnover in the 
year ending March 1977 of 
Kwacha 1,551m (£l,000m) and 
a trading profit of Kwacha. 177m, 
has 104,000 employees and is the 
133rd largest indnstrial corpora- 
tion outside the. United States. 
It Is a. 100 .per cent state-owned 
holding company which directly 
or indirectly controls over 90 
companies (many with substan- 
tial foreign minority interest), 
including Nchanga Consolidated 
Copper Mines (NCCM) and 
Roan Consolidated Mines 

.The two mining companies are 

unaffected by the change&Jjw- 
: ever; which iftolish. -air Zimco 
subbolding corporations except 
for the Industrial Development. 
Corporation (Indeco) arid v the 
National Import and Export Cor- 
poration (NTEC)I 
•All the subsidiaries of 
National Hotels, National Trans- 
port Corporation, Zambia. 
National Energy Corporation, 
trie state Finance and Develop- 
ment Corporation (Fin deco) and. 
the Mining Development Cor- 
poration, (Mindeco) will now 
become direct operating sub- 
sidiaries of Zimco — the existing 
■ status of RGM and NCCM. 

•. An undisclosed number of 
companies *Vhich have fulfilled 
no useful purpose or drawn the 
corporation into massive losses 
wil also be abolished,” said the 
President. Zambia Airways, 
Zambia Railways and the Posts 
and Telecommunications Cor- 

poration will become Zimcd 
members., 1 . 

Commenting on. fee moves 
yesterday, a- company spokes- 
man said that Although Zimco 
becomes even larger. Its various 
companies are given a greater 
degree of responsibility operat- 
ing under what he called 1 
small but powerful Zimco 

A further important change 
is that fee companies will be 
allowed greater freedom in 
pricing policies. Uneconomic 
pricing — in part due to Govern- 
ment , delays in approving 
increases -= has resulted in 
heavy losses in certain com- 

’ The net effect will be to end 
the previous unwieldly relation- 
ship- with Government. leading. 
it:. Is hoped, to an overall 
improvement in Zimco’ s per- 



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December 20 issue. How do they do it for 25p ? 




By Tony Hawkins 

SALISBURY — Six Bills 
designed to eliminate all 
v legislative ” racial discrimina- 
tion in Rhodesia were tabled in 
the House of Assembly yester- 
day. The Bills, covering land 
'tenure, health, education and 
necessary amendments to the 
existing constitution will be 
debated for the remainder of 
this week before the House 
rises for a brief Christmas 
recess on Friday. Parliament is 
"due to reassemble on January 9 
when the Bills will undergo 
theix committee stages and 
third readings at which ti|ne 
MPs will be required to vote on 
the new legislation, some of 
-which requires a two-thirds 
..majority before it can become 

The Transitional government 
says it planned to conduct the 
debate in two stages in order to 
give MPs a cEance to consult 
their constituents before voting 
■in mid- January, on the legisla- 
tion which flows from fee 
March 3 internal settlement 

. For the legislation to become 
law, Mr. Ian Smith’s ruling 
.Rhodesian Front must win fee 
support of at least 44 of fee 66 
MPs. There has been specula- 
tion feat some of fee 50 white 
MPs might defy fee parly .whip 
arid oppose the bills, but most 
if; riot all, the 16 blade MPs are 
expected to vote for the aboli- 
tion of discrimination thereby 
Siring Mr. Smith a very com- 
fortable two-thirds majority. 
The 'leader of the bouse. Mr. 
Jack Mussett, told MPs that the 
central theme of. the March 3 
agreement had been fee 
removal of all racial discrimina- 
tion, “it therefore follows that 
fee land tenure act (which pro- 
vides ; .blacks from. . owning 
property in white urban areas) 
has to be repealed." 

Michael Holman writes from 
Lusaka; Patriotic Front co- 
leader,- Mr. Joshua Nkomo, 
claimed yesterday that Rhodesia 
had received 48 Alouette Mark 
3 helicopters- from South Africa. 

Iraq moves 
to end 
Eritrea war 

By Ihsan Hljazi 

BEIRUT — Iraq may soon 
host a conference of represent- 
atives of fee Eitrean rebel 
groups and the Ethiopian 
regime of LL-Col. Mengistu 
Haile Mariam to bring about a 
peaceful solution to the con- 
flict in Eritrea. 

According to diplomatic 
sources the matter was raised 
By Mr. Saddam Hussein, vice 
Chairman of Iraq’s ruling 
Revolutionary Command Coun- 
cil during his visit to Cuba last 
weekend. They said the conflict 
in the horn of Africa was also 
one of the subjects fee Iraqi 
leader raised wife Soviet offi- 
cials during his visit to Mos- 
cow last week. 

Tass, the Soviet news agency, 
emphasised Moscow was not in 
any way involved in the 
Eritrean conflict 

Soviet officials were reported 
to have told Mr. Hussein that 
a solution to the Eritrean prob- 
lem should be based on a plan 
for a federation with Ethiopia 
already offered by LL-Col. 

Cuba sent troops and 
weapons to Ethiopia to help 
fee regime there in fee war 
against the Somalis in the 
Ogadan region and reportedly 
against the Eritrean seces- 
sionist rebels as well. 

The rebels, who have been on 
the retreat lately in fee face of 
an all-out offensive by fee 
Ethiopians, have accused both 
thf Cubans and the Soviets of 
fielding troops in the fighting. 

Iraq, like most Arab states, 
has been supporting the 
Eritrean rebellion. 

Diplomatic sources said the 
principle of a transitional 
-federation between Ethiopia 
and Eritrea may be considered 
at fee proposed conference to 
be followed in 10 years time by 
a plebiscite in Eritrea on the 
question of total independence. 

Begin explains refusal to 
sign amended peace treaty 


TEL AVTV — Israel wil! not 
sign a document which is not a 
peace - treat}' and which is 
linked to an overall settlement 
whose attainment is not in 
Israel's hands. Mr. Menachcm 
Begin, the Prime Minister, said 

Explaining to the Knesset 
why the Government had 
rejected the latest Egyptian 
proposals for resolving fee im- 
passe in the peace talks, fee 
premier again blamed Egypt 
and fee U.S. for the fact that 
the peace treaty was not signed 
at fee weekend. 

He told fee House that Israel 
could not accept the Egyptian 
proposals because they would 
empty many clauses of their 
content, and stressed feat the 
interpretations which Egypt 
wanted to attach to the draft 
treaty were unacceptable to 
Israel, even if they were sup- 
ported by the U.S. 

The peace offers d to Israel by 

Egypt is likely to lead to a situa- 
tion in which if one of Israel's 
enemies declares war, . Egypt 
will join in the attack, the 
Premier said. 

"With all the friendship 
between Israel and the U-S. and 
ail fee help which Washington 
gives Israel, we must be pre- 
pared to reject the proposals.” 
he added. "We will have to 
stand firm until the U.S. 
Administration recognises feat 
Israel is an important factor in 
fee free world and that it is 
Washington’s duty to strengthen 

The Israel Government could 
not accept a target date for 
implementation of fee autonomy 
arrangement on the West Bank 
and Gaza Strip. ** because we 
have had experience of such 
target dates before.” At Camp 
David, said Mr. Begin, it was 
agreed that the negotiations 
between Egypt and Israel would 
be concluded by December 17; 

but this proved Impossible 
because of Egypt’s “ new 

Mr. Begin pointed out feat 
elections to the proposed Pales- 
tinian Administrative Council in 
fee West Bank and Gaza 
required both electors and can- 
didates. “Today, after all that 
has happened In recent months, 
we can say that neither exists 
because of intimidation. If we 
set a target date, this would 
increase the intimidation.” 

Mr. Shimon Peres, leader of 
the opposition Labour Party, 
said he rejected fee Govern- 
ment's peace plan but noted 
that Israel would stand united 
in fee face of external pressure. 
His party would not lend a hand 
to weaken the authority of fee 
Government in the negotiations. 

The Government is expected 
to win approval for its position 
when the House votes later 
todav but the main opposition 
parties probably Kill abstain. 

Bhutto continues defence speech 


boosted by his sensational 
appearance before the Supreme 
Court on Monday. Mr. Zulfikar 
Ali Bhutto. Pakistan's con- 
demned former Prime Minister, 
insisted yesterday that he had 
no role in the conspiracy’ of 
which he is accused and 
repealed that instead a con- 
spiracy had been hatched 
against him. 

Looking more relaxed and 
composed. Mr. Bhutto argued 
for over three hours before fee 
seven judges in a packed court- 
room. He spoke with his old 
eloquence, and received both 
interjections and promptings 
from the Bench. 

Mr. Bhutto 52 id there was not 
a “scintilla of evidence ”■ to 
show that he wanted to kill Mr. 
Ahmed Raza Kasuri. fee man 
who accused him of ordering 
the Lahore cor ambush in 1974 
in which his father died of 
bullet wounds. “I’ve got no 
motive.” Mr. Bhutto declared. 
“ My fight is with big people.” 

At fee end he said his 
accusers had indulged in'” over- 
kill” in their venom against 
him. Were it not for their 
hurry, excitement and inexperi- 
ence. they might have had a 
perfect case. “But God will 
rescue me.” he said. 

He thanked the judges for 
giving him a hearing. “ At last, 
after a year. I've been able to 

say something.” he said “ You've 
done me this favour. Now you 
can hang me. But you've con- 
ceded this right l ” 

As expected. Mr. Bhutto used 
the proceedings to elaborate cn 
some of fee points which he had 
made fee previous day. Dissect- 
ing fee judgment of fee Lahore 
High Court which sentenced 
him to death last March, he 
offered examples to show that 
the court had been biased, and 
scorned the suggestion that he 
was a “Muslim only in name.” 

He denied that the Federal 
Security Force implicated in. 
the murder was his personal 
force, and challenged the inde- 
pendence of witnesses used by 
the prosecution. 

New plan 
for Japan 

By Yoko Shibata 

TOKYO — Leaders of Japa-, 
nese shipbuilding workers have ; 
put forward alternative pro- 
posals to fee extensive redun-_ 
dancies planned by fee .■ 
country's shipbuilders. 

The policy announced by the 
National Federation of Ship- 
building and Heavy Machinery 
Workers’ Unions, which is 
affiliated to the conservative 
Japanese Confederation of 
Labour (DOMED, envisages 
long term lay-offs and shifting 
idle workers to other industries. 

Seven major shipbuilders 
have announced plans to cut 
their labour force following 
guidelines issued in November 
f by the Transport Ministry- The 
Ministry's recommendations call 
for an average 35 per cent re- 
duction in shipbuilding capacity 
to deni with the protracted 
slump in shipbuilding orders. 

The Federation’s proposals 
were criticised by fee left wing 
Ail-Japan Shipbuilding and 
Machinery Workers’ Union. A 
spokesman for the union, which 
rejects layoffs and dismissals 
proposed by shipbuilders, said 
the Federation's plan would 
have a negative impact on 
union strategics in other indus- 
tries to counter the *' em- 
ployers' personnel retrenchment 

Workforce reductions planned 
by Japanese shipbuilders 
include a cutback of 10,500 
workers by Mitsubishi Heavy 
Industries by October. 1980. a 
20 per cent reduction in the 
wage bill (equivalent to a 
reduction of 4,000 to 5.000 
workers 1 by Ishikawajima 
Heavy Industries and a cutback 
of 2,000 workers by March. 
1979, by Mitsui Shipbuilding 
and Engineering. 

In additinn Hitachi has 
already cut 1.850 jobs. Kawasaki 
Heavy Industries is planning a 
reduction of 2.000 by fee end 
nf 1980 and Sumitomo Heavy 
Machinery Industries a cutback 
of 1,900 workers. 

IBM announces System/38. 

A computer that lets you have fast 
access to information through your 
own terminal 

It uses the latest technology 
to combine extraordinary capacity 
with ease of use, all at the incredibly 
low price of £72,000* (On current 
rental prices, 
thath just over 
£2,400 a month.) 

Ifs so easy 
to use, your secre- 
tary can. use it 
Aided by prompts 
and even a “Help” 
button- p* 

Yourother . , ; 

departments nan \ wrawsYSiBKflaeHGB 

also have their own terminals. 

And they can use them 
simultaneously as if each was the 
only one using the computer 

Each user gets the information 
requested in whichever format best 
suits them. Yet, because all the data 
is integrated by System/38, it means 

i — 


that all users are in touch with 
same central source of 
information. So when data is 
updated for one application 
e.g. order entry-it is Yt 
J'*] immediately available for 
■ | all others using that 
'■ information, such as 
1 c despatch^ production, 

•: accounts and stock control 
'' : < Security features, built in to 

' the system, can restrict 

; information on a “need-to- 
; know” basis. 

.\* And even while 
; requests for information 
i are being made from user 
! terminals, the DP manager 
; can be running new 
. : programs, or modifying •• 

. . existing ones. 

: Because System/38 frees 
ISS the DP manager from petty 
tasks, thus enabling him 
to get on with his main 
function, you’ll find him 
••• ' >..$ greatly in favour He’ll 

--3 explain to you how 
impressive System/38b 
features are. 

Such as the fact that 
■ \ it starts with a half a 
'' megabyte of memory 
and can handle up 
■ to 40 local work stations 
plus many more remote clusters. 

If!s worth knowing more. Simply fill 
in the coupon, or call your IBM rep- 
resentative. But please do so soon, 
Because, to judge from 
response so far; the only waiting 
you'll ever have to do for 
System/38 is in the queue to get it 






Alan Butchei; 

General Systems Division, 
IBM United Kingdom Limited, 
28 The Quadrant, 

Richmond, Surrey TW9 ID YE 
Tblephone 01-940 9545. 


| leiepnone U1-94C 3545. mm w 

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NASA prepares for Skylab to fall 


manned U.S. Skylab space 
station, the biggest man-made 
object in space, is likely to 
plunge back to Earth at some 
time between July and 
September next year, raining 
debris over a very large 
stretch of the earth. 

The National Aeronautics and 
Space Administration (NASA) 
announced yesterday it had 
given up further attempts to 
prevent Skylab falling from its 
present 265-mile-high orbit. 
Increasing mechanical failures 
on Skylab and sunspot activity 
increasing the atmospheric 
drag on the space station were 
making such efforts futile, the 
agency said. Launched in 1973, 
and last manned in 1974. Sky- 
lab was originally due to stay 
in orbit until I98S. In that 
period. NASA bad hoped to put 
men back into the space labor- 
atory by means of the Space 
Shuttle it is developing. 

Of the I57,000pound Skylab, 
some 40,000-50,000 pounds is 

expected to survive re-entry 
into the Earth's atmosphere, 
NASA officials said. It will 
then break up into 400-500 
pieces, weighing from one 
pound to several hundred, the 
agency said the risk of injury 
or damage was less than that 
from meteorites, which them- 
selves had not caused any 
recorded fatalities. 

The debris could come down 
anywhere along a band of the 
Earth's surface 4 .000 miles long 
and 100 miles wide, NASA said. 
Three quarters of Skylab's 
flight path is over water, but it 
also encompasses the U.S., most 
of South America. Europe and 
all but the southern tip of 
Africa, and Australia and New 

Mr. John Yardley, a NASA 
administrator, said yesterday 
his agency would develop con- 
tingency plans, including 
medical assistance if necessary. 
NASA lawyers made it dear the 
U.S. would accept full liability 
for any damage or injury, 

under the 1972 United Nations 
convention on the peaceful use 
of outer space to which the U.S. 
is a signatory. 

Mr. Yardley said Skylab con- 
tained no radioactive material, 
unlike the nuclear-powered 
Russian Cosmos satellite which 
caused considerable alarm last 
January, when it went out of 
orbit and its debris landed in 
a remote part of Canada. The 
NASA officia said the Soviet 
Union had been informed of the 
U.S. agency's decision, and the 
U.S. would welcome any sug- 
gestions on Skylab the Russians 
might have. But NASA had con- 
cluded that any move to blow 
Skylab up — perhaps with a 
Russian anti-satellite weapon — 
In space would result in even 
more debris reaching earth. 

Hitherto, the largest object in 
the U.S. space programme to re- 
enter the earth's atmosphere was 
the Saturn rocket used to launch 
Skylab. Weighing originally 
90,000 pounds, the Saturn landed 
in the sea off Africa, without 

causing any damage, according 
to NASA. 

The .total cost of the Skylab 
programme has been $2.5bo. 
With the original research goals 
of the programme largely 
accomplished while the space 
laboratory was manned, Mr. 
Yardley said it was not worth 
spending $30m more in a prob- 
ably futile attempt to keep 
Skylab in orbit as a landing 
dock for the Space Shuttle. A 
second Skylab is now in Wash- 
ington's Aerospace Museum, 
because there are no more 
Saturn rockets to launch it. 

Development of - the Space 
Shuttle has been .delayed, and 
the first orbital test flight is 
not due until next September. 
This delay helped NASA to 
decide to abandon attempts to 
keep Skylab up. But Mr. 
Yardley said the shuttle still 
had a rationale, even without 
Skylab, in the launching of 
other satellites, including a 
smaller European version of 
the now-doomed American Sky- 

Citibank in tax talks with Swiss 


NEW YORK— Citibank con- 
firmed yesterday that it was 
negotiating with the Swiss tax 
authorities over possible back 
taxes arising from its foreign 
arency opertions. But it 
declined to say how much was 

The bank's announcement 
came after a report, prepared by 
its lawyers and auditors, 
revealed possible irregularities 
in foreign exchange transactions 
in a number of European 
countries. The report, published 
by Citibank on November 24. 
pinpointed the bank's Paris, 

Frankfurt and Zurich branches 
as having conducted question- 
able “ parking operations 
designed to shift profits from 
Europe to the bank's Nassau 

A bank spokesman said yester- 
day that as a result of the report. 
Citibank had, on its own initia- 
tive, approached the Swiss tax 
authorities about its possible tax 
liabilities. There had been one 
meeting so far, be said, and 
another would take jjlace once 
all the information had been 

However, he denied as 
“totally unrealistic" a story in 

yesterday's Washington . Post 
that Citibank's liability could 
amount to $50m. 

“ At most. Citibank's potential 
tax liability in Switzerland could 
be only a small fraction of the 
amount mentioned in the Post," 
he said. 

Citibank's tax affairs have 
received wide publicity as a 
result of a suit filed by a former 
employee. Mr. David Edwards, 
who alleges that he was wrong- 
fully dismissed because he tried 
to investigate what he believed 
to be illegal foreign exchange 
practices. The case is still at 
the pre-trial hearing stage. 

Union rejects Carter pay limit 


NEW YORK — The Carter 
Administration may face an 
early challenge to its wage 
policy guidelines from a mili- 
tant oil, chemical and atomic 
workers union whose two-year 
contract expires on January 7. 

One of the union’s 12-member 
national oil bargaining policy 
committee. Mr. Billie R. 
Dameron of Kansas City, said 
today that the committee did 
not intend to co-operate with 
the Administration’s wage 
guidelines in its negotiations 
for a new contract for 60,000 
of its members in the oil- 
refining industry. 

A union official at its Dearer 
headquarters said subsequently 
that Mr. Darneron’s remarks 
accurately reflected the view of 
the negotiating committee and 
of the union's president, Mr. 
A. F. Crospiron. 

He added that union assess- 
ments of rank and file feelings 
on the current negotiations in- 
dicated that the membership was 
not ready to support the 7 per 

cent wage guideline in the 
Administration's pay policy. 

The main problem for the oil 
workers is that they are seeking 
an improvement in fringe 
benefits under their contract. 

Last week, the Carter 
Administration modified its 
wage guideline by excluding 
from the 7 per cent limit the 
cost of maintaining fringe 
benefits. This is seen as an 
attempt to meet the needs of the 
Teamster’s Union whose master 
freight contract in the trucking 
industry expires in March. Some 
labour analysts estimate that 
the Teamsters will be able to 
get a first year contract increase 
of at least 12 per cent as a re- 
sult of the easier rules. 

But the oii workers are not 
seeking but to maintain benefits 
but increase fringe benefits 
which is not excluded from the 
7 per cent limit. 

The oil workers contract 
promises to be the first test 
case under the anti-inflation 
policy. Since no formal cash 
offer has yet been made, how- 

ever, it is not clear whether 
the union will be able to find 
enough loopholes in the guide- 
lines to reach a settlement with 
the oil companies. 

The union spokesman said 
that the oil companies, which 
could face considerable pres- 
sure from the Administration 
for breaching the guidelines, 
seem determined to abide by 
the 7 per cent ceiling. 

Lockheed counters 
PSA suit 

Lockheed Corporation has said 
it filed a $lo.5m countersuit 
against PSA which sued Lock- 
heed on Friday for $99m over 
three L-I011 TriStar jets, 
reports Reuter from Burbank. 
Lockheed's suit, filed in the 
Superior Court accused PSA of 
breaching a 1972 contract to buy 
the planes. Lockheed said it in- 
curred the $15.5m loss because 
PSA, parent of Pacific South- 
West Airlines, refused to accept 
the planes in 1975. 


How to spur exports and 


in clash 

with U.S. 

By Michael Dor|n«, Aerospace 

pay for social security 


“THIS IS one export I wish 
you'd keep to yourselves” was 
the reaction of one Capitol Hill 
hand asked about moves in Con- 
gress to introduce a form of 
Europe's Value Added Tax into 
the U.S. So major a switch of 
tax policy, with the attendant 
nightmare that it will swamp the 
American businessman in paper 
work, would almost certainly 
need the Carter administration's 
backing, and that has not been 

But with Congress's two chief 
tax writers, Senator Long and 
Representative Al Ullman, 
recently asking their joint com- 
mittee on taxation to prepare a 
Bill on YAT to be discussed in 
both Houses next session, it can- 
not be taken lightly. A joint 
request of this kind from the 
chairmen of the Senate finance 
committee and the House ways 
and means committee is rare. 

Both men have mooted the 
benefits of VAT before, and the 
Nixon administration flirted 
with the idea of using it to spur 
U.S. exports. But previous bids 
have foundered on liberal 
opposition to the introduction of 
a “ regressive " consumption tax 
like VAT: poor people would 
pay a larger slice of their in- 
come in VAT than the rich. 

The new impetus for a fresh 
look at VAT is the parlous state 
of the social security system, 
from which Americans get 
their pensions and disability 
allowances. For a variety of 
reasons— among them, ■ demo- 
graphic trends towards propor- 
tionately fewer people working 
and more retiring, social 
security payments have 
threatened to outstrip their sole 
source of finance, the payroll 
tax receipts. 

Only by agreeing to steep, 
and unpopular, payroll tax 
increases, has Congress kept the 
system solvent. The present 
6.13 per cent tax rate, on both 
employer and employee, is to 
rise to 6.65 per cent by 1983 
and to 7.63 per cent by 1990, 
while next month the base on 
which it is levied is to be 
sharply increased. 

The matter is of more than 

academic interest to foreigners, 
because of recent U.S. moves to 
collect social security payments 
from nationals working in the 
U.S. of countries with which the 
U.S. does not have bilateral 
agreements. Britain is one such 

Neither Congress nor the 
Administration wants to dip 
into the general tax revenue 
kitty to finance social security. 
Breaking the restraint inherent 
in the system’s link with a 
specific tax like the payroll tax, 

The U.S. Congress in its 
next session wilt discuss a 
Bill proposing the Introduc- 
tion of a form of Value 
Added Tax along European 
lines. The idea’s critics point 
out that a consumption tax 
like VAT would hit the poor 
harder than the wealth}’, and 
would bring U.S. businessmen 
a mountain of paperwork. Its 
supporters argue that VAT 
would be a useful alternative 
to the unpopular payroll tax, 
could give exports an extra 
competitive edge and could 
reform the way social 
security payments are 

so it is perhaps implausibly but 
nonetheless strongly argued, 
would unleash a wave of 
irresponsible welfare spending. 
So the search is on for alterna- 
tive and less unpopular money 
raisers. VAT is at the top of 
the list 

VAT’s small band of 
enthusiasts in America says 
that, concealed in the sale price 
of goods and services, the tax 
would be more acceptable to the 
public than the payroll tax. By 
taring consumption, it would 
increase investment, and by 
replacing at least partially the 
payroll tax, it would encourage 
employers to take on more 

It could also, they say, give 
U.S. exports a price edge that 
they do not have now. Indirect 
taxes like VAT. under the 
GATT trade rules may be 
rebated on exports, while 

levied on Import* — exactly as 
the European Community does 
now. This cannot be done with 
a direct tax like the U.S. payroll 

American exporters, and their 
lobbies like the U.S. Chamber of 
Commerce and the National 
Association of Manufacturers, 
have pushed for VAT as an 
alternative to the payroll tax 
for this reason. On the other 
hand, their clamour for VAT 
was noticeably louder in the 
pre-1971 days of fixed exchange 
rates, and their present tax 
gripe centres much more on the 
Administration's threat to dis- 
continue the corporate tax break 
it gives foreign earnings. 

Mr. Ullman thinks the U.S. 
should have “ a uniform, low 
level tax along the lines of 
what is used in Michigan." But 
the portents from that state, 
the only one in the Union to 
have something resembling a 
VAT, are Inconclusive. State 
tax officials describe the 
Michigan corporate tax as “a 
bastardised VAT.” in that since 
it was introduced in 3976 
numerous exemptions and 
adjustments have had to be 
made for specific industries 
and sectors. 

It is also calculated in a dif- 
ferent and apparently simpler 
way than the EEC version of 
VAT. Instead of being calcu- 
lated at each stage through 
which goods or services pass, 
Michigan businessmen, tot up 
at the end of a year their profits, 
wages, interest, depreciation 
and so on, subtract items like 
capital investment, and pay the 
tax on the difference. 

Certainly, Michigan has 
found its value added business 
tax an easy revenue-raiser. At 
a rate of only 2,35 per cent 
and in spite of many exemp- 
tions, it brought $900m into the 
state coffers this past year. 
This makes the prevailing esti- 
mate that a national VAT, 
levied in all 50 states, would 
bring in $12bn for each per- 
centage point oF VAT look 
somewhat conservative. Senator 
Long has suggested a national 
VAT rale of 10 per cent. 

A BID by the U.S. Civil 
Aeronautics Board (CAB) to 
get rid of existing methods 
of fixing world air fares Is 
being bitterly contested by 
more than 100 airlines in the 
International Air - Transport 
Association, and .by almost 
60 foreign governments. 

- The U.S. effort Jbas taken 
the form of the CAB issuing 
a “Show Cause” order, re- 
quiring the IATA, which 
represents most of the world’s 
major airlines, to show why 
its existing methods of fixing 
International air fares should 
not be declared contrary to 
the public Interest in the U.S. 

Such an action, if carried 
to its logical conclusion, would 
not only render the IATA and 
its member-airlines liable to 
severe penalties Inside the 
UB. itself, but also outside 
that country wherever they 
carry UB. citizens. As a 
result, the foreign airlines 
and their governments are 
resisting the UJ5. strongly. 
Mr. Knot Hammarsklold, 
director-general of the IATA, 
said In Washington yesterday 
that the CAB’s action was not 
only precipitate bnt also over- 
turned more than 30 years’ 
acceptance by the U.S. Gov- 
ernment of lATA’s fares- 
fixing and other practices. 

The IATA argues that the 
U.S., while having jurisdic- 
tion over its domestic civil 
aviation affairs, has no com- 
parable authority over inter- 
national aviation affairs, which 
must be conducted according 
to “multilateral consensus.” 

Furthermore, it says that 
the CAB M Show Cause” order 
Ignores the essential distinc- 
tion between domestic ser- 
vices and international avia- 
tion operations which need 
regulations to ensure con- 
venient and economic 

IATA says the CAB’s order 
is based “ on a narrow view of 
the public Interest, land 
departs from the Federal 
Aviation Aet by giving a con- 
trolling weight to (the 
theoretical, domestic anti- 
trust concepts, and virtually 
Ignores the need expressed by 
most sovereign governments 
for an integrated International 
operating system. j 

“The public interest stan- 
dard thus improperly applied 
by the CAB places undue 
emphasis on unbridled com- 
petition, and disregardsj the 
Board’s legal obligation to 
assemble and disclose the 
evidence upon which it ifelies 
to question the traffic con- 
ference (fares fixing) sysfem.” 

The IATA, therefore, : calls 
on the CAB to set aside its 
“Show Cause” order,! and 
recognise that fundamental 
changes to the International 
air transport system require 
“ multilateral consensus:'” 

China deal 

with Coca-Cola 

By Our Own Correspondent 

NEW YORK — Relations 
between the U.S. and Com- 
munist China have been' truly 
normalised: Coca-Cola is; to go 
on sale in Peking and • other 
major cities from next month. 

The Coca-Cola company 
announced, yesterday that! it bad 
signed an agreement With a 
Chinese Government agency 
which gives it exclusive! rights 
to sell Cola in China for an 
indefinite period. The timing, 
right after the announcement of 
diplomatic relations, is appar- 
ently coincidental Coca-Cola 
has been negotiating with 
China for 10 years, 
undertones. When the Russians 
finally succumbed to Western 
ways eight years ago, they in- 
vited in Pepsi Cola, which now 
has some 10 plants in the 
Soviet Union. 

The choice of Coca-Cola by 
the Chinese has ideological 

■ . “ : -.."Terr?” .--t- ■. - - , v ,. 

Financial Times. - > : 



Chrysler to raise $23L5m; 
fourth quarter loss at Fire- 
stone Tire; European- 
American Bank president 
resigns— Page 24, 

may buy 
new Airbus 


By Terry Dodsworth 

PARIS — A visit to France 
by a 12-man evaluation team' 
from Alitalia has raised the 
possibility that the airline will 
place a major order for the new 
version of.’ the A-300 Airbus, 
which is likely available 
in late 1982. 

Alitalia recently placed an 
order for eight of the aircraft 
in its present form, along with 
three options. At a press con- 
ference in Paris. Dr. Umberto 
Nordio. the president of Alitalia, 
said that his company would 
need between 30 and 45 aircraft 
of the new A-310 type between 
1984 and 1990. 

He added that the company 
might have to make a decision 
on whether to buy the European 
aircraft or the Boeing 767 rival 
within the next six months. So 
far the major support for the 
A-310 has come from Lufthansa. 
Swissair and Iberia. 

The Airbus Industrie consor- 
tium has set itself the target of 
capturing between 25-30 per 
cent of the world airliner mar- 
ket in the sector which will be 
covered by the 200-seater A-310. 

While revealing these plans 
yesterday, M. Bernard Lathiere, 
the president of Airbus Indus- 
trie. was able to underline the 
interest of Alitalia. 

On the wider issues of Airbus 
Industrie's future M. Lathiere 
said that progress this year had 
ben much more positive than 
expected, with orders taken for 
71 aircraft. 

In the next six months there 
was the possibility of another six 
airlines announcing orders. Last 
year, by contrast, only 36 air- 
craft were . sold, but with the 
present pace of development the 
company was hoping to build 
up to an output rate of about 
eight aircraft a month in the 
five years up to the end of 1983. 

M. Lathiere said that he 
believes that Airbus Industrie 
has now established its credi- 
bility which has been increased 
with the launch of the A-310 
and the company's ability to 
offer a wider range of aircraft 

Trade figures 
dampen Irish 
EMS success 

after new 





GENEVA — The world’s lead 1 
. ing trading nations are poised to 
complete the main bulk -of ’’a 
major package of trade liberali- 
sation and reform measures by 
the end of this week — more than 
five years after negotiations, 
officially .opened. 

Tbfe latest In a rapid series 
of breakthroughs • in the final 
phase of the Tokyo Round of 
inieniational trafle talks came 
on Monday night when the UiS. 
and Japan announced that they: 
had bilaterally reached “ a com- 
prehensive understanding on 
all principal issues : under 

U.S. negotiators - are now 
working flat ont to reach similar 
agreements with as many other 
countries as possible before the 
talks, adjourn for two weeks on 
Friday. . \ . I : . • 

It will not be possible, how- 
ever. for everything to.:be tied 
up by the end-year deadline as 
the Round’s two biggest par- 
ticipants, the U.S. and the FEC, 
are not yet ready to reach a 
complete settlement. Although 
the European Commission is 
pressing ahead .with nego- 
tiations here, it looks as if dis- 
cussion of at least twp key 
issues — safeguards asainst 
cbean imoor f s - and Industrial- 
tariff cuts— will have to be put 
off until the New Year. V? 

The hope, nevertheless, .is 
that a big enough package can 
be put together this week to ; 
enable President Carter . to. 
inform Congress of his iaten- 
tion to enter a new trade agrees 
meni in early January, allowing 
sufficient time for Congres- 
sional ratification. 

•.also:' ’well 

' ‘/When Congress reconvenes/ products ••••• ‘ are 
in mid-January, the Admimstra- ; advanced . ; 

Son 1 would also taWe iegisfekon. ..The CoammL—. ^ 
relieving itself of an obtigation ^however.have yet to > lesotae 
to impose countervailiing-di^ee^ fhe sensitive issue ot./muniM 
on a wide range of ITS. Import* tariff:, 
mainly from the -EEC. The Cant-: ’ chenttcaJk New 
- muhity- has said it will*'nbt rtnr-7 t^!M/vat ;4he 
elude the final deal until . been ..Welcomed/ pn ; th&^mr; 

threat has ' been effectively; ■ : 

Uffiiri ' r - r -encouraging -feigns, of movement 

• = /- V ", ' but a-; final -deaths unlikely , 

. A major questkramarfc : , sljB -- bef ore .tiae; . 

remains over the attitude:? of -p or - the. Co mmu nity; 

France/ which has constantly a tjon has been- soihew^ 

.«.! I,- mnpi+i nn AM whftt.. . r * ■ t- -a. ..7-..-— XT. rw- . 


reserved i-ts position on what- niicated '-byi^-M^i^S"' t*S> 
ever deal the Commission japanese-de&k-iii' which-the two 
G 611&VSL ’ At. tti wai w n vwtiftt.'- .A atorftiArf V ..♦hpx I*? 

negotiates in Geneva.* At. - their? 

Monday's EEC ; Council. ,.pL be^effori^^avold^anyiSlgaifi' 
Ministers meeting in-. Brussels* cant- .. jmodi&CRimjis -/of-.’ three 

T?> a^riM'accnri/cnrTmic _* . r. •- »■ ' *1 


- , _ - Thfc ^CoijjBBumty's’ most im- 

op farm exports. .. . po riant . export^ the ^ U.S.‘: and' 

Italy said it could- not- acceirt ^tapaiirare/nbt necessarily the 
proposed Community^ .epheesrj same as those between -Japan : 
sions on agricultural imports ; and,:, the : Bttt where there.' 

from the UB, such as- tobacco; is - overlap*, it - will now be 
rice and canned .frui,t._ ; Neither:; harder for the_ Community, f to- 
country, however, tried to block" ' n^otiate.'changes ih the agreed 
"further progress in the segotia- - positiQn ; .tff' T6j^a‘and-Wash^og-- 
tipns, and bffiriais hare' hop£ T Ion.' . ‘ i-'t- t j V 

that; their dbjectifins will finally 1 in- anhOunhiiig thetr '-.agreed 
be overcome. - ^‘inpat^tfie first. hejwdetL .two ;of, 

. " Most, other areas of .the. talkstha 'KeuDd’s ma%V.i^rticipante; 
are -.close to settlement. Agree* the - U .S'.^afid .;7 apahv, 

■roentds near on new codes of - their satisfae|iap.nt^wn^. met 
^conduct on government', pro- the- mid-Decembeiva'^aoline- set. 

. curement, - technical - standards, * by*' "Ihe; Bmm.Nyrorld^ecoaomm; : 
/customs valuation, subsidies stimmit r Ia» ; "JuJyj- .TbeiagreeT; 
and countervailing- duties and ment,,.of whida ; ^p'ebifiC/delWiSv 
. the reform of GATT roles, in are apt; yet'.a.vailab.le7_ : cpvere 
favour of developing countries, -all the , main i terns under nego-' 
Negotiations on new .roles for. tiattod fedutlihs>tbe pro~ 

: trade in cereals, meat and dairy poae‘d : new eddra of contiucl - ' 

.i\«rn t 

'y ' V '- . -'JV i-:. V ; ' ' • /'r. 

Dollar-yen loan for China 


:v, ■ > -\ j. 

By Stewart Dal by 

DUBLIN — On the heels of 
the announcement that Ireland 
would be joining the EMS be- 
cause sufficient aid has been 
forthcoming to cushion the 
country's vulnerable balance of 
payments, some bad news has 
materialised in the form of the 
trade figures. 

A continued surge in imports 
has meant the trade gap of im- 
parts over exports in November 
was £60.9m, almost three times 
more than in the preceding 
month. For the 12 months end- 
ing in November the total trade 
deficit had risen to £735m. 

Although exports rose by 22.3 
per cent in November which 
was a welcome improvement 
over the previous three months, 
imports rose even more by 34,3 
per cent The problem is that 
as part of the Sterling area. Ire- 
land bas had . hardly any 
monetary tools that it can use 
to dampen .down imports. Early 
in the year, the Government 
attempted to divert the propen- 
sity to import with a Buy Irish 
campaign, but .this has not 

The trade deficit of over 
£700m which is likely to emerge 
for the full year is a had start 
to Ireland's membership of the 
EMS. Although the deficit 
should translate into a current 
account deficit of £300ra after 
invisibles, this level is probably 
too large- if value of the punt 
is to be maintained within the 
limits set by the Deutsche 

Massey sales to Saudi 

Massey-Ferguson has received 
a new order from Saudi Arabia 
for BOO farm tractors and 2.500 
implements valued at £4.7m. 
Sales of the company's farm 
machinery to Saudi Arabia in 
197S amount to over £10.4m. 

TOKYO—Nippon Steel. Cor- 
poration (NSC), which is prp^ 
riding most Df the Y4Q0bn .in 
equipment for the projected 
Shanghai steelworks, has agreed 
with China that half af the totm 
value will he priced in yen and 
the rest in U.S. dollars to share 
the exchange risks involved in. 
the project. 

A final agreement on pay-; 1 
meats will be signed when. jbb 
president of Nippon Steel, Mr., 
Eishiro Saito. visits China .bh 
December 23 to attend the. 

ground-breaking ceremonies for- 
, the works. The 1 Arirman; off 
•NSC, Mr. Yoshlhifo ‘Iriajmna,; 
.'.will lead a high^evel Japanese 
.'•'delegation to the sighing.--' 

• The payments for the, ’steel; 
;. plant will be cash an delivery, 
NSC is provi dijig' 16 of the 25 
•^equipment packages involved; 
in constructing the 6m ton .a - 
year plant '• 

.Press reports foerg. say that 
Japanese commercial banks will , 
"^present a pram io. liie Ghmese 
/offering interest rates on toans 

• - 

Japanese to 
TV production in 

‘-f- -- U- 


TOKYO — Matsushita Ele£ Quasay Electronic is. inaring 

trie, tiie world’s largest electric 25 inch sets in flhnais, with 
appliance m^ker, aaid today It 

will consolidate and increase its sonic products. . . \ : 

production of colour television . Matsushita ■ plans \o start 
sets and other appliances iu the production of electric . J)jvens at ‘ 
U.S. in a new subsidiary, to be the new subsidiary, whrfch will 
called Matsushita Industrial, also take over production of 
from January. video projectors. 

The reorganisation, prompted Other Japanese tele 1 
by difficulties in exporting to makers ..have already annl 
the UE. caused by the higher ced thdr intention to shift 
value for the Yen and U.S. or all of tbeir production 

import curbs, will mean Mat- the UjS. market . to the .U 

sushi la will introduce U.S. because .: of the stiff -harriez 

production of Panasonic brand 
sets 17 inches and larger for 
the first time. Exports from 
Japan will be cut, but the com- 
pany declined to say by how 

Presently its subsidiary. 

now faring exports. • \ 

• Separately, Matsushita, said it 
will establish a colour TV. parts 
manufacturing company in 
Malaysia, : with . production 
scheduled to start in September 
1979. • 

roughly .-equivalent to those l 
- granted y -other, 'international i 
: borrowers V. '-v -r>s- : 

. ; Nthdn : KeaaV Shiiribun said 
the. banks valT offer - i ff.62& per ■: - 
cent -point spread ::'over Libor" • 
bn; dollar^enomiha ted. loans of 
■ five' 1 ‘ : years and ' above. ! The . 
.Chinese ; wiS~Bhed ^;cpnsiderafale - . • 
■doHar ^ loans -in- order , to carry 
out the, project; . 

^Sieai^tie^ Nipp^Steel said . 
it.-iias- reached an- 1 agreement 
with' its -'linTohs ^orr Jt gradual. . 
reduction vf its workforce and 
the - mothbatiing of several - : roll- 
ing miHs ahd furtiaces. 

; ; Tbe' r :cansent unions, 

sfoongh. scnw. fvShioms remMft 1 - 
to- - he.. Worked out, . jwift • mean, 
that' gojahead With . _ 

plans . iter reduce r it£ ready -' 
-capacity for - steel production^ 
from a . present 47m ton? to 36m: . 
ton! j 
^jSRTcattSn^ is only produce y 
ing ' , tons' - of cnide. - 
: stoe! per yearj^ projects tiiat. - 
roedium-; term. - demand^ ■ will. .. 

' require, <oDfy; 32 to 36m tons - 
annualljr. vlt Is reported that the - . 1 
-total vroiKEorci will be reduced, • 
ta abdutTOjOQO- from-76,00(I by- - , . 
IQSO-thrwigh. retirements and - 
cutijadks injtiliRHg. /. 

• Coca Qo\a. will begin selling'; . 
Rs ^oft'-drinks ' in Ghina from; 
early-^ ^ . next , year, chairman. J. ' 
Paid Austin, ^ifl/nccbrding to- 
a report from AtKhta. , . 

He said initially, bottled and ' 
panned soda would, be imported - 
tor dls&ilratibn: in . the major _■ - 
feties and tourist centres. At" 
the. sameltinie, ;hottl3ng opera- - 
turns will^.e .established in the 
co^ntiy, he.saht .Reuter 

• # 

4~ ' 

'Oii dro 

A per re 

Multi-purpose ships talks 


THE ABC Containerline, 
registered in Belgium, has 
started talks with the local 
Cockerill Shipyard at Hoboken 
about plans to build the first of 
three £19m multi-purpose con- 
tainer. ro-ro, bulk cargo and 
refrigerated vessels for possible 
use on routes to China in the 

The first ship, if ordered, 
would be delivered at the' end 
of 1980 for service “until the 

end of the century," Mr. 1 TsvL 
Vered Rosenfeld, the president 
of. the company said in- London 
yesterday. ; ■ . ‘ , 

Multi - purpose ships were 
essential to help combat the 
depression-, in ' the shipping 
market, -he said. The. vessels 
would be used on world mar- 
kets, but the development-' of 
China as a -large importer of 
foreign produce and machinery., 
would make it a particularly 
attractive, market. ... 

£6m coirttact 
foi- Dowty 

8jr Haxel Duffy; . . .... 

- . Ind ustrial Correspondent- • ■ 
.THE, . .DOWT3T' engineering ' 
group ahnoubeed a package deal 
yesterday under which , it will 
e^ablish. j complete factory ttt' 
China for the manufacture of- 
hydraulic gjarea equipment for 
mine.; roof supports., . 

• - Th e- - agreement/ Which is 
yalned.;. at - £8m, . follows iJtm 
reeent - - £70m ,■ contract signed 
;between ■ Dowty and the China - . 
National . V Technical import 
C orporatioTT f or ■ the supply o£ 
■longwall nrinjag .equipflienL -- - 

■ ^IDn tai, 

?c- a ' 


Colombian coal becomes viable 


COLOMBIA HAS some of the 
largest and Gnest quality coal 
reserves in Latin America, but 
the viability of large scale pro- 
jects designed to supply local 
and export markets depends on 
Government action in two 
crucial areas — pricing policy and 
the provision of transport 

With oil reserves dwindling 
and the country's import bill for 
crude and petrol increasing 
rapidly, the Government plans to 
use coal as widely as possible, 
especially in power stations and 
the cement industry. Coal pro- 
vides about a quarter of the fuel 
used by thermal power stations, 
and that share should rise to 
over half after 1985. 

But substitution can go ahead 
only if President Julio Cesar 
Turbay’s administration makes 
some drastic changes to the 
price structure of fuels. 
Apparently, it is prepared to do 
so, to ensure that coal is rela- 
tively attractive compared with 
natural gas and other hydro- 
carbons. In the longer term, 
there is great interest in the 

liquefaction of coal once thip 
process becomes more viable. 

Coal production has expanded 
from 2.6m tonnes in 1960 to 
about 4m tonnes in 4978, but 
methods remain antiquated and 
inefficient. lo an accident last 
year 86 miners were killed. 
Small producers work in 
•appalling conditions for very low 

Exports^-mainly to' Brazil, 
Venezuela, Peru, Ecuador and 
the Netherlands — account for 
less than 200.000 tons a year. 
Although large scale* projects 
near the coast and In the centre 
of the country are rambling 
slowly ahead, estimates of 
Colombia’s total., coal reserves 
are still of the haziest. Official 
sources put them somewhere 
between 3bn tons and.67bn tons, 
with 40bn tons as the figure 
quoted most -frequently^ The 
biggest known, steam coal 
deposits are at El Cerrejon near 
the coast of the Guajira, and 
San Luis in the Department of 
Saiitander. . Most of. the best 
cooking coal is found north oP 
Bogota, in Cundinamarca and 

Boyaca^OJere are also exten- . GeoIogicai-ResearcH'fil^ittite. 
siyeroal dep.«ltai* areas near . - 

-.iff ted- Colombia's- -coal 

* *1 ■ 


wvj.vaiM' ,ii. (ucoa uetti 

Medellin and Call, and 'in North 


thp ..s 1 ' . Signed - with 
Colombian coal" ^ TcnmpS^ 

v,uwiuuutu . corn . company- .•/ ■ . -• 

Carbocpt ■ says a study to define . - ^ Is'mvertjpg.'ardiiird § 
cori v - reserves should ■ have' - 

priority: must find out 

ffltlA 1 fWial WA hottA * 4llV*tQTAC 

mueh 1 coal we haw before cm- 3$0G0 hectares; wiQva. vieW to : 
bar^ing'.pn large scale exploiia-: ^ “ 

. _ . much?a3- 15m tons 

tion.. . • ^ of obaf^ a. 

" We-, are trying to make a * 
systemafic'^tudy. co-o rriinaHYiW - ^hare :th&; -financi^ '■ 
all -the.; work being- done in ^Uity s .‘fer j.davelnpmSit, ftAdilch -' ' 
different-areas. Then we - -means . 

fill in the holes by making - ubw have tulnvert;.at:le^'SKhh l l^ 
agreements. ’ where ^necessaiy^- ^is^ P^djecto during - 
and doing 'duTvOwa exploratioiv a-; ' coiMidei^oir whirii' 1 ; ■ 

wdrij'."’- r " . '■ '• . — 

Carbocot was ereaterf 
yeaii ^gq to; develop the __ 

industiy- sharehoidpra^. . Th c ^uuai. ^-ea-or^ 


the : ' Trrdnglriftl • • Ttearalyviw. . ■*-'stXcf 

■ •: «: r. -i 

C,. 5 , . ■“% 


2 , 



\ SCOTLAND YARD” has drafted 
mere than 2,000 uni formed 
; ?.i- policemen into the .West. End 
i‘ of London - to stop bomb 
- .attacks on .major stores during 
the Christmas shopping period, 
' h \ The men, drafted from all 
*. ’■(<■ over London, have been briefed 
. “to stop suspects- entering: '-'or 
.. i* leaving vulnerable areas.” 

: ' :‘v All police, leave- in London 

has been cancelled, 'and a 12- 
hour day is being worked ■ until 

- >. • further notice: . 

: Scotland Yard said: “ Crime 

prevention officers throughout 
: London are visiting all stores 
to discuss preventative security 
\ ^ measures with security staff and 
/’■ to advise- on evacuation pro- 
cedures in the event of bomb 
i L alerts.” - 

There was a joint potice- 
military exercise yesterday at 
Heathrow Airport, which has 
been on a security red alert 
’ “ : i.. since the ' terrorist ' bombs 
exploded. in London-on Monday 
morning. More than 60 troops, 
’• wearing battle- dress, and carry- 
-V ^ .ing automatic rifles,. were on 
• duty 'with Scorpion tanks. 

- Saracen armoured ' tanks and 
'%• personnel carriers. 

■/* Two Scorpion tanks patrolled 
:.-V the central passenger area and 
. soldiers guarded car parks next 
' ' to the terminals— keyareas for 

terrorist bom ba • • , - . " 

' r -- Severn Bridge 
work finished 
ahead of time 

Bjr Robin Reaves, 

Wefeh Correspondent 

THE LATEST round of repairs 
it to the Severn Bridge has been 
completed a week ahead of 

- schedule, allowing traffic lane 
_ restrictions in force since 

t October to be removed in time 
• ' for the Christmas honaay. , 

! '■; The restrictions, were intre 
duced amid criticism,- to- auow 
repair and replacement of the 
. . ■- bridge's expansion . joints— 
which had been free of trouble 
“• for only four months. . 

Since the bridge — which car- 
:= ries the M4 . Motorway . aeross 
i the Severn Estuary into South 
Wales — was opened in 1966, 

: over £2m has been' spent, on, re-. 

- j. pairing and . strengthening its 

basic stracfiire, 

. The Wales CBI has recfeqtly 
joined the call for tolls .to be ; 

. . suspended while repairs, 'which- 

- . disrupt traffic, are being under- 

In a letter tt> Mr. William 
Rodgers, the Secretary of State 
• for Transport, the CBI says- 
that an average of S.000 com- 
merrial vehicles Use the bridge 
■- -r.each day and, unless more is 

- done to minimise disruption, 

- ■ it could damage efforts - to 

attract new industry to South 
Wales.. ’■ 

_j . The CBI also suggests that 
:: essential repairs should be car- 
. ried out round the clocks seven 
"• .: days a week. - - . 

Fewer killed 


FEWER PEOPLE w^re ’Jailed 
in workplace accidents last year 
compared with.lflfddn spite of a 
slight increase in themnunber of 
notified accidents. About 16m 
working -.days were lost as a 
result of workplace accidents, 
representing a loss -of -about 
£UHm a - year to -'British 
industry. -- .. 

The accident statistics - are 
contained in the-aimiuil *eport 
of the Health and Safety' Com- 
mission and- Executive- pub- 
lished yesterday. . 

The annual number, of ’fatal 
accidents at work has fallen 
steadily from .834 in 1973 to 621 
last year. But while- the report 
shows that the' number -of noti- 
fied accidents in construction 
and coal mining fell slightly 
last year, the number in .manu- 
facturing industry grew and the 
total number of workplace 
accidents increased from’327,000 
in 1976 to 329.Q00. . 

The increase in workplace 
accidents, the first recorded 
since 1973, may represent an 
increase in notification. Mr. 
Bill Simpson, chairman .of the 
Health and Safety CozmnissiDn, 
said -that, while the increase 

The report also details the 
co mm i ssio n's revised five-year 
plan of work for 197B-8S, con- 
sisting of nearly 200 projects 
including the preparation of 
regulations on transporting 
dangerous substances, and re- 
search on a variety of subjects. 
The commission also draws 
attention to its campaign to 
change the law so that legal 
sanctions can be applied to 
Crown bodies, 

Mr. Simpson said yesterday 
that he had written to Govern- 
ment Ministers requesting a 
further meeting to discuss pro- 
gress towards removing Crown 
immunity, which the commis- 
sion considers is an unjustified 

In the Health and Safety 
Executive report, Mr. John 
Locke, director-general, chose 
the need for better information 
as his dominant theme. 

His report discloses that, in 
the last year, £8.6m was spent 
on research, although an 
increasing tendency is for the 
executive to undertake work in 
conjunction with other bodies 
and to attempt to persuade 
was “not significant, "’ffie reduc- industry to finance much of its 
tion in deaths “did 1 not give own safety research. 

Unit trust 
sales up 
to £525m 


UNIT TRUST sales are expected 
to exceed £525 m comfortably 
(this year — an improvement of 
more than one-fifth on the pre- 
vious best year, 1972. 

Forecasts of the spectacular 
1978 sales total were made by 
Industry observers yesterday 
despite news that sales in 
November were a slightly dis- 
appointing £36.4m. This was 
the lowest figure since Febru- 
ary. But thanks to extremely 
heavy sales in the spring and 
summer it brings the total fer 
the first 11 months of ahis year 
to £50Qm. 

With sales nf at least £25m 
and probably £3tiin expected for 
this month, the total for the 
year is expected to be more 


Opening world market for reactors 


Commenting on the general 
low level of fines imposed by 
courts for offences under the 
Health and Safety at Work Act. 
1974, Mr. Locke said he hoped 

room for complacency 


The report emphasises two 
main themes of the, '-commis- 
sion’s work: Preventing risks the increase in maximum fines 
rather than finding , remedies under the Criminal Law Act 
after the event, .-. ;jihd an would result in higher fines so 
increased awareness r of the as to “not devalue" the work of 
need to protect the -public, -as those concerned with occupa- 
well as worker’s, fttffi^work- tional hazards, 
place hazards. Mr. Simpson said he hoped a 

In a review of the eommis- preliminary working party 

report on fast breeder nuclear 
reactors would be before tbe 
commission “during the first 
half of 1979." 

Net expenditure by the 
This. was “a major milestone” Health and Safety Commission 
on the road to Increased col- and the Executive was £42.27m 
laboration between employers for the year ending March 31. 
and employees xh improving an increase of £4.6m over the 
health and safety at wotfc. : . previous year. 

sion's work up to March 31. 
this .year, the report draws 
attention to the introduction of 
workplace safety representa- 
tives and safety committees. 



HERR HORST-DIETER ^ESGH, Enterprise Boajd, 
head of the German IBH .ton- The possibility V of collabora 

struction equipment group; will tion * with other companies in 
be discussing the possibility of marketing and manufacturing 
collaboration - on • marketing has been considered by Aveling 
when, he ..visits .Aveling- Barford for some time, and it 
Barford's Grantham factory may well be that such an 

BP Oil drops 
5-star petrol 

BP -OIL and National, Benzole 
are to stop selling fivertar 
petrol at the end of.nextMarch. 

The reason for the move is' 
lack of -demand. BP Oil said 
yesterday that demand had been 
declining ever since 1974 when 
UK production ' of ' motor 

uI1 " vehicle engines reguiring five- 
star petrol ceased^ C • - 
National Benzole. jJart of. the 


_ British .Petroleum group; said 
m g* five-star accounted for only 2 
r percent of its. total petrol sales. 
BP Oil said five-star accounted 
for less than 1 peT cent of its 
.. petrol sales. 

; Autumn sales 
rise 40.7% 
at Christie’s 

-THE LONDON fine are sale- 
rooms continue to boom. The 
autumn season has seen a 40.7 
per cent .sales increase for 
Christie’s, 38 per cent for 
Sotheby’s, -and 19. per cent for 
Phillips on the . equivalent 
months of 1977. Sotheby’s 
managed sales t-:o t a ITi n g. 
£71,750,000 since September and 
Christie’s £42485.000. Phillips 
totalled £27,462,907 for the year. 

The main gains for Sotheby’s 
were in the UK rather than in 
the -U.S. ’ .The- salerooms in 



London, Torquay . and the 
Sco ttish , auctions achieved a 58 
per cent gain compared' with 
only a 13.9 per cent improve- 
ment -in North America. 
Christie’s sales in London rose 
£4m to £20 .3m, although, over- 
seas auctions improved from. 
£13-2m to £20.7m. .. 

Phillips’ plans 1,000. auctions- 
for 1979,. and usual asked its 
specialists what they considered 
to be tiie best bets -in the sale- 
room as a hedge against infla- 
tion next year. The favourite, 
choice was good quality furnir 
ture,. followed by' jewellery and 
other small portables, such as 
stamps, corns, gold and. 1 sflver 
boxes, . miniatures, watches ' and 
small silver# ' ‘ 


The visit was arranged 
before the announcement by BL 
Special - Products that tbe 
activities., of Aveling-Barford, 
and Prestcold, are to be 
reviewed. Since it was made 
known -publicly that the future 
of-these two companies is under 
review,- there have been several 
inquiries from British and 
fo reign- owned companies in. the 
industry, but no bids have yet 
been received. • 

The review, which will be 
completed early in the New 
Year, is .considering a number 
of options, one of which is the 
sale of the companies. The 
recommendations of the review 
body, which includes senior 
management of Aveling- 
Barford, BL Special Products, 
and BL, are then expected to be 
considered by the National' 

arrangement would be • more 
acceptable to the NEB than an 
outright sale. Prestcold already 
hai a collaboration agreement 
with a German company. 

An arrangement with IBH 
could be viewed as an interest- 
ing prospect as its products are 
largely complementary to those 
produced by Aveling-Barford. 
The IBH group has expanded 
quickly in Europe under the 
direction of Herr Esch, who was 
formerly head of Blackwood 
Hodge’s Continental operations. 

ome 75 per cent of Aveling- 
Baiford’s production is ex- 
ported,' and the group has been 
particularly hard hit by the 
competitive edge afforded to 
American manufacturers by the 
weak dollar. After making a 
profit last year, it is expected to 
lose about £3m in this year. 

Move to ease pension 
transfers in mergers 

the transfer, of employers’ 
pension scheme obligations 
when companies- are taken over 
or merged were laid before 
Parliament yesterday. 

given in some cases to em- 
ployers who want to take out 
contracting-out certificates or 
surrender them. 

The Department of Health 
The regulations allow em- and Social Security said that 
ployers in some circumstances the notice and consultation pro- 
to vary contracting-DUt certifi-; cedures may be dropped for 
cates issued under the state’s employees who continue to be 
new earnfngwpelated pension in. centracted-out employment 
arrangements wi thou t having to through the same occupational 
give notice and without the pension schemes, without any 
need to consult trade unions, change to the benefits they 
Similar flexibility will also be require in those schemes. 


Granada wins £300,000 
hotel TV deal 

a five-year- contract worth over awarded a £50,000 contract to 
£300,000 to provide 1,070 colour re-equip the sales team of 
TVs to Western .Europe’s largest Encyclopedia Britan nica with 210 
hotel— the Regent Palace, Picca- Audiscans cassette-operated port- 
dilly, London. . able projectors. 

* * 

TJBWL WINDOWS TELFORD, part A £600.000 contract for the in- 
of the UB3I group has received ; staIlation of all mechanical and 
orders for the company’s 2000 -electrical services at Chatsworth 
series of pre-glazed aluminium House, . St Mazy Axe, City of 
windows . complete with fly London, has been secured by 
screens, worth . more . than HADEN YOUNG. The medbani- 
£400,000. This includes housing cal services include all air con- 
st the Aqaba Port development ditioning. and plumbing, while 
in Jordan for -Tarmac Sbahin, the electrical services cover 
housing, at the Riyadh water ..underfloor trunking, mains distri- 
treatment plant for Ogen Over- button -and air li ghting , 
seas and a 'ho using complex in * 

Qatar for UK-based Mclnerney VICKERS MEDICAL has secured 
Contractors. -S3WX0C0 worth of orders for its 

- * SP 120 computer-controlled sys- 

J. .CARTWRIGHT CONSTRUCT tem for Wood sample analysis. 
TION has been awarded £3m of Seven orders were won from UK 
new contract worics in Yorkshire, hospitals in six weeks during a 
The largest is. a £700,000 order -campaign to (promote the benefits 
for a_m odernisatioir and convex of the system to establishments 
'Sion programme at, Swainhouse -with a high throughput of blood 
■Estate, Bradford. . .: samples. 






A - 










. MfAl 
s A** V* 

p: '• 



1977. • 

1978 1 

than £150m above last year's 
£372m. Tbe previous record 
yearly spies total was 1972 s 

The industry's repurchases 
from investors cashing in their 
unit holdings totalled £24m — a 
fall of more than £6m on 
October. This left net new 
investment of £ 12.4ra — an im- 
provement of £lm on October 
and tiie best figure since July. 

Mr. Edgar Palamountain, 
chairman of the Unit Trust 
Association, said: "Sales in 
November were lower than in 
the immediately preceding 
months and this probably 
reflects the public's boredom 
with the stock market's recent 
inactivity. The low level of 
repurchases is encouraging 
after the high figures in 
September and October and it 
comes at a lime when 
repurchases would be expected 
to be high for seasonal reasons. 

“ The overall picture for the 
year is very good and indicates 
that the public has fully 
recovered its confidence in 
shares as a savings medium.” 

THE UNK being forged be- 
tween Northern Engineering 
Industries and Rolls-Royce with 
Combustion Engineering of the 
U.S. is presented as a mutual 
opening of markets. 

Northern Engineering and 
Rolls-Royce will be in a 
favoured position for subsidiary 
work on U.S. contracts, while 
the two UK companies will help 
to open up world markets for 
Combustion Engineering's pres- 
surised water reactors (PWRs). 

At this early stage, both 
remain highly speculative. Com- 
bustion Engineering is the prin- 
cipal UJS- supplier of 1300 MW 
nuclear steam supply systems, 
with seven installed and work- 
ing — apparently successfully 
— 24 more on order and a 
strong chance oF two further 
orders from the Tennessee 
Valley Authority in the middle 
of next year. 

There is about £4.5m worth 
of subsidiary components, 
which are routinely contracted 
out to suppliers for each supply 
sysiem, for which Northern 
Engineering and Rolls-Royce 
could bid, and if the joint com- 
pany is to win contracts which 
take in the nuclear island as 
well, there will be about £22m 
worth of subsidiary work. 

On the other side of the coin, 
tiie U.S. company hopes first, 
that a Jink with two large UK 

manufacturers will give it an 
entry into the UK market for 
PWRs — which might be large 
in tbe future, but at present is 
limited to the prospect of one 
in the 1980s — and second, that 
the overseas expertise of 
Northern Engineering and 
Rolls-Royce will secure export 
orders, some of them hopefully 
turnkey contracts, which Com- 
bos tion Engineering could not 
secure alone. 

While it is strong in coal- 
fired capacity overseas, it has 
sold no nuclear systems abroad, 
and tends generally to operate 
through licensees rather than 


Rolls-Royce has been planning 
for the past IS months to break 
into the civil nuclear power 
market with its experience of 
submarine reactors. In 1959 it 
was chosen by the Ministry of 
Defence to lead a consortium 
called Rolls-Royce and Asso- 

PRW under construction in the 
UK — a new test and training 
reactor at Dounreay in Scotland. 

For the past nine months, says 
Mr. Ray Whitfield, the Rolls- 
Royce director responsible for 
future planning, it has been in 
discussions with the American 

This Is in spite of a disrcoui^ 
aging message from Mr. 
Anthony Wedgwood Eenn, Sec- 
retary for Energy, when Mr. 
Whitfield and his chairman Sir 
Kenneth Keith took their initial 
ideas to the minister a year ago. 
At that time the minister was 
generally hostile to any idea 
that Britain might build PWR 
power plants, and specifically 
hostile to the Westinghouse 

The climate changed early 
this year, however, when with 
■evident reluctance Mr. Wedg- 
wood Benn was persuaded by 
the combined weight of the 
electricity supply industry, the 
nuclear industry and his cabinet 
colleagues to capitulate to the 

EES* m 

per cent Rolls-Royce with the 
balance shared equally between 
Babcock and Wilcox, Foster 
Wheeler and Vickers. 

It has supplied the Navy with 
16 pressurised water reactors 
under a Westinghouse licence, 
and is building three more, 
including the only land-based 

build one large PWR station in 
order to see how the experience 
compared with building more 
UK-designed advanced gas- 
cooled reactors. 

already had a link with Com- 
bustion Engineering through 
the latter's 12.5 per cent stake 
in it through International 
Combustion, giving it access to 
the U.S. company’s technology — 
will benefit most from any 
possible contracts from the work 
already in hand by Combustion 

It manufactures switchgear, 
control panels, instruments, 
instrumentation and valves us 
does Rolls-Royce), pumps, com- 
pressors. fans, motors and hydro- 
gen recambiners. all of which 
its new partner might view with 
favour, jf the price wore right. 

The company does not expect 
any deterioration of its relation- 
ship with the National Nuclear 
Corporation, which has told it 
that it is tbe favoured supplier 
fur the boilers for the two forth- 
coming advanced gas-coolcd 
reactor f AGR) stations at Hey- 
sbam and Torness. 

In the UK market, much 
hangs upon the attitude of the 
Central Electricity Generating 
Board. While it had been 
assumed that Westinghouse was 
the most favoured supplier 
because the nuclear corporation 
is a licensee, executives from 
Combustion Engineering, 

The Combustion Engineering Northern Engineering and 

Rolls-Royce engines 
have record year 





By Maurice Samuelson 

ABOUT HALF the 12 Elec- 
tricity Boards in England and 
Wales have said that from 
next year they will stop the 
quarterly price increases 
caused by the 1974 energy 
crisis. The others are 
expected to follow after talks 
with consultative councils, 
which represent consumer 

The change, due to take 
place on January 1, follows 
the Electricity Council recom- 
mendation that the fuel cost 
adjustment to quarterly hills 
be consolidated into basic 
electricity tariffs. It is hoped 
to revert to the earlier prac- 
tice . of reviewing prices 

The Southern Electricity 
Consumer Council said yester- 
day that it had backed the 
change by a small majority. 
The Eastern Board’s council 
approved of the change 
because it did not wish to be 
“ tbe odd man out" an official 

From January L. domestic 
bills will show the price of 
each unit inclusive of all fuel 
costs. There will be no change 
In the total price of each 
unit Fuel cost adjustment 
will be added to the unit 
charge and shown as one 

Degree of risk 
weighed for 
fund managers 

l NEW computerised service 
for fund managers was launched 
in London yesterday by stock- 
brokers Rowe Rudd and Co. It 
is designed to measure the 
degree of risk in investment 

Clients will be provided with 
a computer terminal from which 
they can assess a database con- 
taining information on some 
1,500 UK quoted companies. 
Based on an analysis of the 
price of individual shares over 
five years, the objective Is to 
produce a mathematical survey 
of the risk characteristics of 
particular shares and portfolios. 

In essence, the service 
measures the tendency of a 
particular share price to 
exaggerate the overall movement 
of the stack market Rowe Rudd 
claims that it will help the fund 
manager to choose a portfolio 
with tile risk profile most suited 
to his needs. 

It wall also help him to 
measure the past performance 
of a fund not simply against 
market indices but by reference 
to the degree of risk taken in 
the relevant period. 

ROLLS-ROYCE has had a 
record sales year, with deals 
signed in 1978, for aero-engines 
worth more than £2bn. 

Sir Kenneth Keith, chairman, 
said yesterday that “provided 
we continue to remain competi- 
tive on costs and delivery times, 
and continue to sustain further 
developments of our product 
range, our long-term commercial 
viability is assured." 

Among the main sales are the 
British Airways and Eastern 
Air lU.S.) orders for the 
new Boeing 757 twin-jet airliner 
with the Rolls-Royce RB-211 
engine in its new Dash 535 ver- 
sion, worth over £300 ra, and the 
Pan American order for Lock- 
heed TriStans, worth £250m. 

Other big developments have 
included the signing of contracts 
for the manufacture of Spey 
engines in Romania. Adour mili- 
tary engines in India and Gem 
helicopter -.engines in Egypt, 
which collectively are likely 
eventually to be \ worth more 
than £350m. 

Exports of aero-6ngines for 
1978 are likely to be, well over 
the 1977 level of £318m, which 
represented 45 per cent of sales 
in that year. 

Sir Kenneth said yesterday 
that the company needed to suc- 
ceed with all its engine^ pro- 
grammes, “ but the RB-211 
family is really the key to' v the 
future success of Rolls-Royca 

"It has now dearly estab- 

lished itself as a major power- 
plant in civil aviation, giving 
us the chance to match and beat 
the only other two major engine 
makers in the world — both of 
which are American (General 
Electric and Pratt and 

“ Together with our other 
engine "programmes, the RB-211 
family will provide Rolls-Royce 
with the means to penetrate 
further into the aviation market 
and acquire a significantly mrge 
share of the new business which 
will be generated in the isuOs 

“I believe Rolls-Royce now 
has the resources and the will 
to compete aggressively and 
successfully anywhere in the 

Sir Kenneth also stressed the 
need for the UK to agree to sell 
Harrier jump-jet fighters to 
China, if China was to be en 
couraged to make other trade 
deals with the UK, 

A Chinese technical and 
trade mission has been touring 
the UK aerospace industry, dur- 
ing the past week, discussing a 
wide range of possible pur- 
chases of aircraft and equip- 
ment. both military and civil. 

But it has been made dear 
by the Chinese that the key to 
future deals remains the UK 
Government agreement to sell- 
ing tfie Harrier to China in 
quantity — which is believed to 
mean several hundred aircraft. 

System 80 reactor — a so-called 
“second generation” PWR — is 
one of four designs .the elec- 
tricity supply industry has been 
evaluating this year, with a view 
to choosing, any week now. the 
design it believes best suits its 
own and the nuclear inspector's 

For Rolls-Royce one attraction 
is that Combustion Engineering 
although having sold fewer 
reactors than Westinghouse (the 
brand leader), has suffered far 

Rolls-Royce yesterday stressed 
that their joint venture must 
dictate a change in generating 
board priorities. The V.G. com- 
pany will make a further major 
presentation to the board in 
March, and is confident that it 
is impressing. The board 
remains non-committal. 

However, other UK power 
plant manufacturers — thf 
General Electric Company and 
Babcock and Wilcox are 
unlikely to conceal their dis- 

fewer technical troubles with pleasure. Indications yesterday 

those it has bold. In any case, 
the company is a major supplier 
of pressure vessels to its rival 

Northern Engineering — which 

were that the creation of the 
new venture was being regarded 
as an unwelcome intrusion into 
an already confused and under- 
worked industry. 

Kirkby co-operative 
plans new claim 


THE loss-making Kirkby Manu- 
facturing and Engineering 
workers’ co-operative on Mersey- 
side is likely to stay in 
business for at least another 
month, despite its losses which 
have been running at about 
£20,000 a week. ' 

Tonight the co-operative shuts 
for the Christmas holiday and 
will remain closed for nearly 
two weeks until January 2. 

During that time the co-opera- 
tive’s leaders will send further 
details of their claim for fresh 
Government aid to Mr. Alan 

year by PA Management Con- 
sultants and have contacted a 
waste materials processing com- 
pany that might be interested in 
using part of the one-third of 
the Kirkby factory that now 
stands empty. 

But so far there seems little 
political interest among Minis- 
ters in giving them further aid. 
although there is considerable 
pressure from Left-wing Labour 
MPs for the co-operative to be 
kept alive. 

Once Industry Department 
civil servants have processed 

Williams, Minister of State for the new application for aid after 


Although the exact amount of 
their claim is not clear, it is 
unlikely to be less than £3m 
on top of £5.6m aid they have 
received since the co-operative 
was set up four years ago. 

Their plans include reducing 
the 720-strong labour force and 
expanding and modernising the 
production of central heating 
radiators. This is in line with 
ideas put forward last month by 
Worcester Engineering, a small 
central heating equipment 
manufacturers that was then 
negotiating to take them over. 

They have also drawn on a re- 
port prepared earlier in the 

the Christmas holiday, it will 
be sent to the department’s 
independent Industrial Develop- 
ment Advisory Board for vet- 
ting.- In the past the board has 
advised against most of the co- 
operative's applications for aid 
and was only prepared to 
approve the Worcester applica- 
tion, which would have meant 
the co-operative returning to the 
private sector* with some 

Meanwhile, the co-operative 
seems likely to be able to 
manage financially for some 
weeks before its major creditors 
start pressing for payment of 
outstanding debts. 

Lord Grade announces 
TV and film projects 


LORD GRADE, chairman of 
Associated Communications, 
yesterday announced a wide 
range of projects for tbe group. 

He also attacked the Govern- 
ment's tax policies. He could not 
sign such UK stars as Michael 
Caine or Michael York to work 
on films in Britain because of 
the tax complications. 

He said: “We are losing all 
our talent in this country,” and 
added that he would be sneak- 

fpr the ^ Boys from Brazil, Capricorn One 
and Movie Movie. He believed 
income that the new Muppet film “will 
earners from the UK be our Star Wars." 

In the coming year, ACC. the Lord Grade also hinted that 
former Associated Television ACC would be interested in 
Corporation, would he making a acquiring cinemas if the oppor- 
film of the TV series Porridge, tunity arose. 

an American version of Cross- 
roads, and a TV series on the 
life of Nelson. 

Lord Grade also spoke of his 
current crop of feature films. 
“There are not 15 pictures a 
year in America which take 
more than $10m a year in film 
rentals. We are fortunate. We 
have learned our lesson, and 
have three pictures which have 
already taken, or will take con- 
siderably in excess of $10m. 
The films concerned were 



Group Unaudited Results 
For the 24 weeks ended 14th October 197$ 

52 weeks 
29th Apr. 




24 weeks 24 weeks 
ended ended 
14th Oct. 15th Oct. 
197S 1977 

TOOO £'000 

Sales to Third Parties 201.650 185,035 
Add: Sales within the group 36,924 33,134 

498,655 Total Turnover 

238,574 218,169 








Group Trading Profit Before 
• Interest and Exceptional 

Interest on bank overdrafts 
and short term -loans 

Exceptional items 

Group Profit/! loss) 

Share of associated com- 
panies’ profits/llossesj 





627 (316 » 

627 (316) 

(IS) (74) 

Group Profit/ (loss) before 
(534) Taxation 





1,463 Group Profit/(loss) after 





Extraordinary item 







Preference dividends 




Earnings for Ordinary 

S bares 



Note: The accounting year of our New Zealand sub- 
sidiary has been brought into line until the rest 
of the group and the results for the tventy-four 
weeks this year and lost year include the profits 
of this subsidiary. 

Notwithstanding the fact that there is no improve- 
ment in the unfair trading conditions to which I 
referred in my Annual Review accompanying the 
Group’s Report and Accounts for 1977-7S, the Group 
as a whole is trading profitably. The resuits for the 
first twenty-four weeks show an improvement of 
£1 million compared with the same period last year. 
The Board is confident that tbe full year results for 
197S-79 will show an improvement on last year. 

In accordance with our practice, a decision on a 
dividend on the Ordinary shares will be deferred 
until results for the full year are available. 

19th December, 1978. 

19/23 lirW-Lisbridge. 

Liiodcm SIA/1X7NF 

E MS Europe^ biggest meat group. 



Leant Italian quickly and well at the 
British Institute. Courses January 
9-March 30, January 30-february 23. 
March' 6-April 13. April 17-July G. 
Also 4-weeh Intensive Courses 20 
hours' tuition per week January 9. 
January 30. March G. April _ 17. 
Accommodation arranged with 
Italian families. Apply British 
Institute. Lunoerno Guicciardini 9, 
50125 Florence. Tel: 284.031. 


London Borough Bills amounting to 
CIOS million were Issued on 19 Decem- 
ber, 197B. tor maturity on 20 March, 
1979. Applications totalled E510>1 million. 
The minimum price of accepted tenders 
was B7.0&S and 11.93 d * oi the Issue 
was allotted at this price. The average 
rate of discount was 11.741894%. No 
other Bills are outstanding. 


EfiS 0.000 Bills, blued ‘ 20.12.70. at a 
rate or 11“!.%. to mature 21.3.79. 
Total applications £ 2 . 6 m. Total out- 
standing £050.000. 




JANUARY. 1979 





cm m 



Commercial & Industrial 



Residential Property 

2 30 





Business & Investment 
Corporation Loans. 
Production Capacity. 
Businesses lor Sale/ 



Education. Motors, 
Contracts & Tenders. 
Personal. Gardening 



Hotels and Travel 



Book Publishers 



Premium positions available 
(Minimum size 40 column cms.) 
£1.50 per single column cm. extra 
For turther details wrha to: 

Classified Advertisement 

Financial Times. 

10, Cannon Street, EC4P 4BY 



US Dollars 25,000.000 Floating Rata Notes Due 1983 
US Dollars 1,009 Notes to ba redeemed 
In the notice published in the Financial Times 11 December, 1978, the 
following numbers were incorrectly published; 

15948 15983 6289 1858 20788 13528 

Tbe correct numbers are: 

14958 14983 6299 18580 20798 23S26 

Bsnlr ©I America Now Yorlf 
(Principal Paying Agent) 

•^K~'Vy- ; v-VY’-- 7 ™ ‘~ i ip *! 

.Financial Times^ Wearies 


.•3. V ' *' • 1 

V^“ - ' V"? 


r J 

give pledge 



A PLEDGE that the next 
Conservative Government will 
work wholeheartedly for the 
success of the EEC and will try 
to get the Community working 
more effectively, was given 
yesterday by Mr. Francis Pym. 
Tory spokesman on foreign 

In his first major speech cn 
Europe since taking over his 
new post Mr. Pym was 
obviously trying to lay the 
groundwork for the Con- 
servative campaign in the 
elections to the European 
Assembly, which are only six 
months away. 

He strongly emphasised the 
distinction between the Euro- 
pean policies of the Tories and 
those of the Labour Party 
where the Left-wing and anti- 
Market elements are still urging 
Britain's withdrawal from the 

“ Why have we allowed 
Europe to get a bad name in 
Britain? ” he asked. “ Europe 
has not failed us— we have 
failed to make the best of 

There was so question of the 
Conservatives wanting to 
weaken the Community, he told 
a meeting of the Diplomatic and 

Commonwealth Writers’ Asso- 
ciation in London. Labour’s 
policies and the failure to join 
the new European Monetary 
System had left Britain in 
dangerous isolation. 

“Withdrawal is no option now 
and never has been," he said. 
"The arguments for staying in 
are stronger than ever.” 

Although he made it dear 
that a Conservative Government 
would press for sensible reform 
of Community institutions, he 
skirted round any specific 
references to the policies it 
would adopt towards the Com- 
mon Agricultural and Fisheries 
policies — the two central areas 
of disagreement between Britain 
and her partners. 

A Conservative administration 
would show its faith in the Com- 
munity's objectives but would 
not be negligent in looking after 
Britain's interests. We all had 
an interest in making British 
agriculture more efficient and 
Europe more self-sufficient in 
basic foodstuffs. 

The Community had an in- 
terest in overall conservation of 
fish stocks, but also in preserv- 
ing the livelihood of the 
national communities which 
were dependent on fishing. 

In the direct elections, he 
maintained. Labour was hell- 
bent on selecting only those 
candidates who were against 
the European idea. The Con- 
servatives, however, would 
concentrate on the "real Issues.” 

They would attack Labour’s 
record on Europe and would 
talk about what could be done 
at Community level for better 
protection of jobs, a less 
muddled approach towards 
ailing industries, a dearer 
European voice internationally 
and higher living standards. 

They wanted the Community 
to concentrate on measures 
that couild be attained prac- 
tically and effectively. Too 
little had been done -to achieve 
the -good things of Europe such 
as more freedom of movement, 
easier Customs controls, posi- 
tive political co-operation on 
terrorism and firmer action on 
oil pollution. 

The Tories saw the European 
Parliament as playing a comple- 
mentary role to Westminster, 
scrutinising Community busi- 
ness and developing as a power- 
ful influence on international 
matters and being a forum for 
debate on EEC foreign policy. 

Batik of England takes oyer 

licensing money-brokers 


THE BANK of England has 
agreed to take responsibility for 
licensing money -brokers. 

The announcement by the 
EEC Commission, comes after 
26 months of controversy 
started by a money-brokers 
complaint that the London 
market was a closed shop. 
Unofficial details of the com- 
promise between the Bank and 
the Commission emerged last 

to operate more or less 
unchanged, but the Bank's 
involvement has become more 
explicit, to provide the neces- 
sary State backing. 

Furthermore, the existing 
fixed broking rates have been 
abandoned in favour of 
maximum and minimum rates 
set by the Bank after consulta- 
tion with the market. The Bank 
sent out a letter to this effect 
two weeks ago. 

Sarabex, a money-broker with 
Middle Eastern connections, 
complained to the Commission 
last year that the London 
foreign exchange market was 
effectively a cartel, forbidden 
under EEC law unless State- 

Up to now. brokers have been 
licensed effectively by the 
Foreign Exchange and Cur- 
rency Deposit Brokers’ Associa- 
tion. Its members are middle- 
men between dealers in foreign 
exchange and in currency 
deposits, mostly banks. 

The announcement means 
that the market is allowed 

The various changes are made 
in amendments to the O’Brien 

Letter, named after the former 
Governor of the Bank. It was 
sent out in 2975 to detail the 
relationship of the Bank with 
the brokers. 

In the amendments to the 
letter, criteria are laid down for 
allowing new brokers into the 
market. Applicants must submit 
letters from at least six banks 
in London, not fewer than three 
of which must be in the world 
top 300 banks. Two must be 
brokers or accepting bouses. 

The sponsors must testify to 
the technical expertise and suit- 
ability of the applicant and 
agree to use his services. Exist- 
ing brokers must satisfy these 
requirements within the next 

six months. 

Brokers and applicants have 
the right of appeal to the chair- 
man of the Takeover Panel. 

Labour gets down to its 

TODAY, as other people begin 
to get down to the serious 
business of celebrating Christ- 
mas, representatives of the 
Cabinet and the labour Party’s 
national executive committee 
will assemble for a meeting 
where seasonal goodwill could 
be In short supply. The subject 
is the party's next election 
manifesto and on the table will 
be a 62-page document which 
must come under the category 
of Christmas presents the Prime 
Minister would least like to 

Drawn up largely by Mr. 
Geoff Bish, the party’s research 
secretary, for the home policy 
committee ' chaired by Mr. 
Anthony Wedgwood Benn, it 
contains almost .every policv 
decision made by the NEC 
during me past few years and 
ignored oy the Cabinet 

Stronger price controls, back- 
up powers to force companies 
into planning agreements, the 
creation of a State Bank and 
the abolition of- the House of 
Lords — they are all there. 

None of them has been 
costed but they represent the 
fundamental tenets of belief to 
those Left-wingers who feel that 
the Government has lost its 
socialist principles in office and 
that it needs to be pushed back 
on to the road to true socialism. 

A manifesto is of far more 
significance in -the Labour Party 
than in the Conservative Party, 
where it is, essentially, a per- 
sonal pledge by the leader of 
the party. 

To the Labour Left it repre* 
sents the tablets of stone on 
which the party pledges its 



conscience to the electorate. 
They regard it as a full pro- 
gramme of action for a Labour 
Government, and bound Minis- 
ters if they fail to follow it. 

As the last four years have 
shown, governments do not 
always observe the spirit of a 
manifesto with any enthusiasm 
but they are conscious of the 
need to be seen to fulfil com- 
mitments in it — at least -to some 
limited degree. Ministers are 
also aware that, even if the 
voters do not read manifestos, 
such documents can provide 
powerful ammunition for the 
Opposition. Manifestos, they 
feel, can lose votes, and, if for 
no oth’ir reason, must be care- 
fully draWn up. 

The birth of the manifesto is 
therefore always a painful pro- 
cess with the different factions 
within the . party pulling -in 
different directions. 


As yet, the document pro- 
duced for Mr. Berm's committee 
has no official status within the 
NEC. Thoroughly leaked to the 
Press, it is. in the words of one 
Left-winger, "Mr. Benn’s way 
of raising two Singers to the 
Prime Minister and signalling 
the ground on which the battle 
of raising two fingers to the 
of the manifesto will be 
bought” . 

According to the blurb, it has 
been prepared as a basis for 
discussion for the NEC's sub- 

mission to the policy meeting, 
which has to take place before 
an election, between the NEC 
and the Cabinet 
Though some ■ Left-wingeftf" 
think these proposals too f eeble, 
they are regarded with alarm 
by some Ministers who reckon; 
they would make it even more 
difficult for the party to secure 
re-election. In parts the- pro- 
posals run directly counter -to' 
Government policy, as, for' 
example, when opposing a rise 
in indirect taxation. • 

In other places 'the document, 
suggests things which research, 
in the past has shown to be 
unpopular with voters, such as! 
more Government' Interference, 
in the financial institutions; 

For all the publicity .it has’ 
already received, the document 
is a very long way ..freon: 
becoming the official manifesto. 
And even the Left, who see 
their job as ensuring that con- 
ference decisions are enacted' 
by a Labour Gov eminent, admit 
it is highly unlikely that the 
present document would be 
adopted in anything like its" 
entirety. . ' - 7 

The Prime Minis ter, they 
concede, has a very strong hand: 
when it comes to finalising the 
manifesto. They are convinced, 
however, that Mr. Callaghan 
will have to agree to some of 
their proposals, particularly 
those also supported by. the 
TUC. 1 V;C 

They argue, for example, that 

he will have , to : concede 
.nationalisation of at leajst on© 
major industry. . 

. . The nest stage in me negoti- 
ations comes . this ‘morning, 
when the polity sub-committee’s, 
proposals go . before' a full 
. meetingof the NEC. Eight-wing 
members of the i-Execnttve; 

■ like airs. Shirley Williams, are 
~Iikely to put up a strong fight. 

gut the Left dominates this; 

all-important committee,, so 

many of the proposals could be 
approved and so take a step 
nearer becoming the NJSCs 
'Official contribution for the 
:'fdn manifesto, meeting : With 
; the Cabinet. 

In the afternoon the docu- 
ment will be discussed at 
the joint meeting of 
Cabinet and NEC. Hie meet-, 
ine which is a slimijaeddpwa: 
1 version of the full NEC-Cabtoet 
"meeting necessary to approve 
a manifesto, was called by. Mr. 

- to 'argutLOti bis befcalffe:i:;tne- 
proposals as -drafted Wflaild be 
ah- electoral ' albatrtiss^ -the. 
Parly and should hot even- be; 
regarded as 7a. basis tor n 

„ ations. i * f: • - . v • ; ^ ... ■ ■ : 

.Mr, BehiL’ however, . will h e 
equally detennined ' to 'retain • 
the iaftfatiye: For :ifr mtifcthjrhe 

has- been -tiyinr bring 
forward ' thflf - whole. processSt- 
a g ro ein g : -a ~ manifesto^ and '-so . 
avoid, the^ iwrra^sitiiation' of 
"the:- flhal" 'vqr&m. -.npt-j.bewg 
agreed- until Tthe electfen~date : 
has actually been announced. - 



: His idea seemed to be to. 
defuse any plans Mr. * Benn 
might have forgetting his. own 
version of the manifesto agreed- 
as quickly as possible. 

. Both sides agree — albeit for- 
different tactical reasons — that, 
no final decision will Tie . taken 
at today’s meeting, which will 
no doubt show a very largejgap 
between the sides.’ 

Mr. Callaghan will not attend, 
but other Ministers are expected 

T^orz^r-the pdi^ advisers; in 
NO. Iff presuna^'to^/afairly 
dear Idea- erf wbat Jhey would 
like to seg -in,>.tiiec: manti e3to, 
the centrists in :the party have, 
been xeticeitf v abQut -making 
their idea«‘. :pn'b^riy,.. -arguing 

ttest- -'it'.- w>4si» -soon-tomake. 
sncli prowKmmneidsi Their aim 
now will probabtyJbo to kiH off 
the hOjai fr policy committee’s 
proposals in thfeir entirety and 
r^piacd-them wStteotbets agreed 
by a^brqadet- spoctnqjii'of 
opupoif Dim : strategywoaad . be 
for Use moderates themselves to 

• ask" dor' a ibll , clause 5 meeting. . 
: They' aigue that, wito” the 
^Priihe.VMliri^ter on their side, 

tbeyareih a -strong poationto 
- ggtjid 7 o£ ';tbe’’more : extreme 
proposals'" '*'• favoured ' toy **•' Mr. 

• Berm’s ponimittee.- . Even '. so, 
given Mr CaQaghain’& problems 

; ' both with the ; trade .unions and 
-„his qwn backbenchers over pay, 

' IC-seems'fiSely’ that the-XEnjne 
: Mtairtvv'- Will have -to * make 
. some, cotmessfonsr’ rtff’iThe "Left 
"before the manifesto is agreed. 

i- v ' 




Scots likely to call on 
Labour to reflate 


DEMANDS FOR a shift in 
Government policy away from 
an attempt to control wage 
increases to a substantial 
reflation of the - economy are 
likely to be adopted by the 
Labour Party’s Scottish con- 
ference in March. 

Resolutions tor the con- 
ference. published yesterday, 
show a strong feeling in trade 
unions and constituency parties 
that the Government ought to 
abandon its 5 per cent pay 
guideline in the public as well 
as the private sector. 

There should he an.' attack on 
unemployment by ‘means of 
increases in public expenditure. 







Situated very close to the Country Club, to the 
Beach and to the Sporting Club. Two luxury 
buildings in a wide park with swimming-pool, 
panoramic view of Monaco and of the sea. 

1.81318588^ APARTMENTS 

SAB3& -©30 ARAMTT 

Commercial offices: 


7, Avenue Saint Roman - Monte Carlo 
Tel. 5®.S3.3£-Telex 479223 MC 

lO, Boulevard du Theatre 
Tel. g®22] 21.16.88 
Telex 289399 SiPI-CH 

Cut cut cowxm and send back to SJLM. Name. 
JO. Boulevard du m&ttre - GENEVA 

(Swtfesriand). I would Bte to locaive. Address . 
without any co mm itment an my part, 
your documentation on the -Rest- jgj. 
donee du Pan: Sain! Raman". 



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 time, 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/i, IMS, DMS, IDS. 

enced in Micro-Mini Computers. 

M.I.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, 1878. 

Qualified professionals sbould send their resumes to Box 
A.65S1, Financial Times, 10, Cannon Street, EC4P 4BY. 
Or mail directly to: 


31350 Smith Road, Romulus, Mich. 48174, U^A. 
Phone; 313-326-7010 



Uormerhr Taro Havon 
Kibushlkl KAblnO 

5. G. WARBURG & CO. LTD., announce 

has been paid lo shareholders on the 

book) Of the above Company as at 
30th Soptcmber. 1976. m resnect d 
the sbi months period ended on that 

^Holders of Bearer Depositary Receipts 
mooed by S. G. Warburg A Co. Ltd. 

may present Coupon No. 32 lor pay- 
ment forthwith at S. G. Wartnjra & Co. 
Ltd., Coupon Department. St. Albans 
House, Goldsmith Street. London EC2P 
2DL. or nt Banque Internationale a 
Luxembourg, 2, Boulevard Royal. 
Luxembourg, sublect to deduction of 
Japanese Withholding Tax and United 
Kingdom Income Tax ill anyi at the 
aoprooiiate rates. Details of tax 

deduction can be obtained from the 

lying Agents. 
S. G. W< 

1 0R BURG & CO. LTD. 
As Depositary. 

20th December. IS 78. 

registers of the Debenture Stocks will be 
closed from isth ta ZSRh January. 1979, 

By Order ol the Board. 

' : -J. TODD. Secretary. 

9 per cent Bonds due 1939 
Guaranteed by United Biscuits 
(Holdings) Limited 

In connection with the above, the 
iDpolntment is announced ol the follow. 
Ing additional paying agent at its office 
specified below: 

Krodietbanic 5.A. Luxcmbauntcotse. 

43 Boulevard Roval. 

P.O. Box 1108. 


This appointment becomes effective 
on 5th March. 1R79. 


SUS30.000.000.— FLOATING RATE 
NOTES 1 978-1905 
In accordance with the terms and 
conditions of the above mentioned 
floating rate nates the rato of Interest 
far the Interest period 15th December. 
197«, to 15th June. 1979. has been 
toed at 12 %. 

Sod etc A non vine 


Bondholders of the above Loan arc 
■dvlsad that the Redemption, due 
on the 20th January 1979. it. 
U5S1 .712.000 Nominal has been 
effected by pnrehase. The outstanding 
balance after this redemption Is 

20tfi December 1978. 


Chancery Division Companies Court. In 
the Matters at: 

No. 003934 of TS7B 
No. 003936 ol 1978 
No. 003937 of 1978 i 

No. 003941 of 1978 - 
No. 003942 ol 1978 
No. 003949 ol 1978 
end in the Matter of The Companies 
Act. 1248. 

nons for the wmdmg-up ol theiabove- 
named Companies by the High Court 
of Justice were, on the 11th tday ol 
November 1978, presented to the seid 

CU5T0MSAND EXCISE of King’^Beam 

House. 39-41. Mark Lane. London 
EC?R 7HE. and that the said Petitions 
are directed to be heard before the 
Court sitting at the Royal Courts ol 
Justice. S trend. London V/C2A 2LL. 
on the 22nd day ol January 19179. and 
any creditor or contributory ol> any of 
the said Companies desirous to {support 
or oppose the making of an Order 
on any oF the said Petitions may 
appear at the lime of hearing person 
or by his Counsel for that purpose; 
and a copy of the Petition yvill be 
Furnished bv the undersigned i to any 
creditor or contributory qf any of the 
said Companies requiring such copy 
on payment of tho raoulatedi charge 
for the same. 


King's Beam House, 

39-41. Mark Lane. 

London EC3R 7HE. 

Solicitor to tho Petitioners. 

NOTE.— Any person who intends to 
appear on the hearing of any of the 
said Petitions must serve on. or send 
by post to. the above-named notice 
in writing of his intention sq to do. 
The notice must state the name end 
address of the person, or. IP a firm, 
the name end address of the firm, 
end must be slaned by the person or 
firm, or his or their Solicitor (il any), 
and must be served, or. if - posted, 
must be sent by post in sufficient lime 
to reach tho above-named not later 
rban four o'clock in the afternoon of 
the 19ih day of January 1979. 



World Commodity 
Report 1 

If your business interests demand ! 
regular information on any of the 
world’s commodities, just dip your 
business card to this advertisement and 
return it to the address below; we will 
send you a sample copy. 

Send to: 

Subscriptions Dept (WCR), 

Financial Times Ltd., Bracken Ho.use, 
10 Cannon Street, London EC4P 4BY* . 

particularly cm health, social 
services and education, imple- 
mentation of a 35-hour week to 
encourage job-sharing, and use 
of oil revenues to restructure 

The Transport and General 
Workers’ Union calls for a 
separate Industrial Develop- 
ment Fund to channel money 
from North Sea oil revenues 
into industry. 

The Association of Scientific, 
Technical and Managerial Staffs 
demands selective import con- 
trols and greater control over 
multinational corporations. 

The National Union of Mine- 
workers proposes a reduction 
in the defence budget of at least 
i £lbh a year, and the introduc- 
tion of a wealth 'tax as a -con- 

trfbution ' ^ ‘towards- ". “ finally 
effecting a massive shift in the 
balance of wealth. and power -in 
favour of working people.” 

Other important debates .at 
the conference are likely to be 
on land policy, with several 
constituencies calling ' . tor 
nationalisation of large estates 
nr the strengthening of Govern- 
ment powers over landlords: 
housing; and the way the 
Labour Party chooses- its can- 

There are resolutions propos- 
ing that MPs should submit to 
re-election before every elec- 

-THE NUMBER of adults out of work fell in ^ regions except, 
the North andJVbrthern Ireland, to the month to mid-December. 

The toiggaft monthly falls in toe seasonally Adjusted figures 
were in toe North West and toe South East, where toe absolute ; 
numbers out of work fell by 2.3 and 2.1 per centYespcctively: 

The increase In Northern Ireland was 1.6 per ^ent, and to 
the North 0.7 per cent 

In tW last year toe total number out of work,' 
school-leavers, and not seasonally adjusted, fell in 
except Northern Ireland, where the figure wan 
The biggest decrease was to toe South East, 
absolute number of jobless fell by 14.6 per cent to a 

There was a 12.3 per cent drop to the South-West 1JU per 
cent to East Anglia, 7.S per cent to Scotland, 7 per cent. to toe 
North West, 5.7 per cent to the West Midlands, per cent in' 
the East Midlands, 3.4 per cent to Yorkshire and Humberside^2.3 
per cent in Wales and L.6 per cent to tod North. . V 

lading ; 




By .James fidjonald . 

which the Government is loofc- 
■ ing to Reduce- uhmnploymCnt - 
■figures— are finding , .that they 
often cannot fill Jobs because 
men receive more money by not ' 
working; 'through tax rebates on 
top oif tmemploymeTrt benefits. - 

, 'lA^polI taken : by t he- Fb rum of 
;Privat6 ' Business, shows toat 
time tod agatojfirms are being 
told by men Sent , for interview 
from- the local- unemployment 
Loffiee; t ‘i don’t really want toe 
' J^-rmbettorAff outhe dole’." 

t ; ’Best C 



- T?h e pbil • asked ^businesses if 
taxing unemployment payments 
cdujd sdlvethe^ioblemund 82.3 
pier cent of the ^Pties were in 
favour :of short-term unemploy- 
ment bepefits 'being treated as 
taxable' income. In the same way 
: as -earnings. •' 


2 AND 

S;1 Wt 

: Mr: Stanley Mendham, chief 
executove -of- tie -forum, ^ad: 
“We "do not advocate' penalising 
the disadvantaged. Only .toe 
minority whose, unemployment 
' benefits exceeded : their personal 
aHorwances would pay. fax, and 
the moh^y saved cordd be irted 
to alleviate the position of the 
longer-teixa uhemployed.-”’ . 

•• >r, 

L-.-.-j . 




Lloyds Bank Board restructured 


The Board of LLOYDS BANK 
will be restructured on January 
1. A new wbolly-owned manage- 
ment company — Lloyds Bank UK 
Management — has been set up, to 
be responsible for the direction 
and supervision of the clearing 
bank and its subsidiaries in the 
UK. It will have its own Board 
which will report to the group 
Board, as do the other 


Mr. K. G. Rice who has been 
group treasurer of BABCOCK 
AND WILCOX for the past seven 
years will be retiring on 
December 31. 


Mr. David B. Hammond has 
been appointed financial and 
commercial director of. EMI 
from January 1. He has also 
been made a director of EMI 
Films Inc. and EMI TV Pro- 
grammes Inc., and will monitor 
for Lord Delfont EMI’s film 
activities in North America. 
During tlie last five years Mr. 
Hammond has served as EMI's 
group taxation manager. 

In his new capacity he will be 
responsible far advising Lord 
Delfont oa all financial and com- 
mercial matters,' and will be 
functionally responsible for the 
organisation, manning and effec- 
tive operation of the financial 
side of EMI's cinemas, EMI film 
production. EMI Elstree Studios 
and EMI Live .Theatres Division, 
and will oversee the company's 
investment . in Columbla-EMl- 
Warncr Distributors. 


Mr. R. Walker has j oined the 
Board of R. A. LISTER FARM 
EQUIPMENT, a Hawker Siddeley 
company. He i$ based at Mon- 


nounces that Mr. Martin Fried- 
mann has been appointed deputy 
chairman of the interlining 
division. Mr. Alan Levine has 
joined the division as managing 


Dr. Mohses Lab. who Is on the 
Board of directors of several 
Iranian firms, has been elected 
president or the INTERNATIONAL 
(ICC) for 1979. This means that 
next year the world business 
organisation will be headed by a 
businessman from a developing 

country. When Dr. Lak takes 
. office on January 1, he will suc- 
ceed Mr. Ian MacGregor, partner 
in Lazard Freres. The ICC Is 
based in Paris. ' 



SERVICES announces the appoint- 
ment of Dr.. Andrew Clayton as 

director of training for the “Star 

Rider” National . Motorcycle 
Training Scheme from January l. 
The scheme is operating in 40 
UK counties and Scottish Regions 
and is training nearly 2,000 riders 
a month. It is financed by the 
motor cycle industry and trade 
and aims to establish 600 centres 
throughout the .country by the 
end of 1980, manned, by 6,000 in- 
structors, approved by- the De- 
partment of Transport, 


Mr. Michael L. Carr has been 
appointed a non-executive director 
GROUP. Mr. Carr, a solicitor, is an 
executive director of Gresham 


Mr. Horry Griffin has been 
aopointed managing., director of 
Birmingham-based STANLEY 
sidiary of Stanley Gibbons Inter- 

Sir Basil Small peice wUl relin- 
quish, on March SI. the chairman- 
( AUSTRALIA! . which he has held 
for the last eight years, and will 
be succeeded by Mr. Edmund H. 


appointed Mr. William R. Wilson 
to the new post of senior vice- 
president-strategic planning. His 
former post of senior vice- 
president-marketing has been re- 
designated senior rice-president- 
business development, embracing 
planning of. worldwide business 
development of 'all Lockheed pro- 
ducts and services, to which Mr. 
Jark J. Cation has been appointed. 

Mr. Robert F. Conley has been 
appointed vice-president-inter- 
national marketing. He was pre- 
viously president of Lockheed 
I Africa and Middle East) based In 
Paris, and now becomes a corpor- 
ate officer. 

Two senior executives, who both 
reach 65 this month, -have agreed 
to remain for up to one year in 
their present position— Mr. Willie 
M. Hawkins, president of Lock- 
heed -California Company, which 
manufactures the Rolls-Royce 
powered TrlSt&r, and Mr. W illiam 

B. Riefee who as corporate group 
vice-president has . been respond 
si We for the overall management. 
Lockheed companies engaged to 
missiles-.' and space . ', 
electronics, petroleum services 
and shipbuilding and construction. 

★ . *■.• • . '. 
Mr. B. N. Chapman, Mr. R. L 
Loring and Mr. -T. J. S. Wilson 
have been appointed directors of 
ANCE BROKERS. from January JL 
' * - - 
Mr. J. E. Lee has. been mads 

is 8^ subsidiary. He will. continue 
as £ director of Dynamo and 
Motor -Repairs;: - ytew - managing' 
director of Dynamo and ' Motor 
Repairs . is Bri-Jofin M. Chester, 
formerly director and general- 
manager .of. .the-; brain scanner 
dfvisioxrof EMI Medical:. ' 

r ' G- T-, Wright ' has been . 
.appointed ' a - director of HICK- ' 
INGS). Mr. Wright has been a 
director Jor some years of the 

■' 3" i.' r.... 

’ * 1* 

deputy managing director. Biitnr principal ^ trading snbridiary— 
into am-h ased_mactone_too 1 manu-- Hickson and Weldr : ' ' 

facturer. . CINCINNATI •• MXLA- 
CRON. . He will . continue as 
managing, director of the com- 
pany's BiggTeswade machine tool 
division, . 

* * • : \ . 

Mr. Melvin Pelting has been 
appointed -financial director of 
CHEKCTRADE, UK subsidiary Tcf 

Sir John Spencer Wills has 
resigned as a director. of REDIF- 
was elected chairman. -- on. the\ 
totep any^ ■inception;'! in 1964 
baring .. previously -Hreld the 
appointment of chairman, of Assn 

UUUDUJ.4UXL/U, auusiAUaxy. • ox . GI 1 1. V*. UIjAaSu- 

the Sted ber group. He continues - ciated-Rediffiisldn: tome that coin- 
ar company secretary. peaty’s toception ta' 'November, 
_■ i , 1954- Jhuito 6as been 

Lt-Ocneral Slr Rlchard WorsTey . elected ^efrairinan id -^iceeed Sir 
Is to be- Quarter-Master-General, John. - Mr.-Dundas was aopointed 
MINISTRY OF ; DEFENCE. . . Sn ' . a. . director . in ' J967 and wS 
March, in the rank of general in elected deputy chairman in 1970 
succession to General Sli-Pa trick . Re diffusion -Television is a gnhl 
Howard-Dobson. . . i.. ' .sidiarr'erf The BrUSar Electric 

'BKr,' Eric Wright has been made 
group managi n g : director con- 
and Hytrac Conveyors Inc.' and 
will be developing toe 'sales of 

Traction Company.' - v . 7 V . ^ 

_ The Secretary,; erf 'State” for 
Epergy -has.-hpp'oizxted Mr. John 
Quine - TaJjerner a s 'a : part-time 

... . r-. member of tofrEASTE^ELEC- 

major. .. systems. - Mr. , _ Dennis :: :TRI dTY“_ BOARD for a period 1 
Griggs previously works director, . - of tortss^ydai^' is managing- 
becomes ■ man agi ng director ; ot : . director' tff' APEA31eti: ' - 
Hytrac Conveyors and engineer*- v ■* . 

tog. v diroqtor Mr. Frank •- • The- Seccetaiy :: 'if' State for' * 
Llghtowier is the new technical • Soda!- : Serried ;has^ SrSnSd 
sales director. Mr. R. Lloyd who- Prof. - 

^ - pro- ADVISORY CGUNCnA ■ Prof. • . 
nioted tft.finan<aal director, t . v . . - Lowe, . -iorateriy _ professor -of : 

-' v L '"-- ‘ Social ahdp^pa^oSatKedictM : 

^ National School of. . ' 

■dir ector .of ■ MACK ■ * AND , 'Medic fag , Pmf 


imptoit. a branch of the . 

Orgaiusanon, horticultural pro 1 '- 7 -'- ' ^ J '- ; : v -4;' 'r - ; ; • . 

'SS^SWg&iv ^ fe--- ' 

director. .,i - ... C^E;AS?OCIAnON'bfGreat ; 

- ' . 

and .Motor Repairs. ; tax, been-. ^ect^vic^pr^deht. T -p^r . - . 
appointed manager efi. Intel?-:: . 
national- tedhmcal reeource pro-*^ ; Mr. 1: BL" - 
jects' .-.for. , .the toteritettimaLr-Taade a d&«ct^^^scSE , 1®D- 


the GrMERAL ELECTRIG; COM- ..Phirina.^ 

— ilw-, 

PANV-of the vtoich DBQt-^ary l -- c 

< *» : >v 



(U-8U 89U> • J 

251 Greenwich HU* Road. 

Gpemwldi. SE18 SSL. ‘ 

■Deposit Rile 6.45%. Sham JVcomws. 
fl !&■«. Suti'pn. ‘ Shares '-S.33%; TCftn. 
Shares - yrs. RS5"., 3 yre. 0.19%. 
Inieresi paid quarterly on shares/ lerm. 
shares. Monthly, Income Shares RIKt. 


(91 -ns D3> 

15/17 ChUwlefc BJ^h Road, 

London m 7NC. _ 

Snb'ptt, Share* 930%. Deposit RUe 

7.75%. . ■ . . 

Share -Accounts 8.23%. 

Term Share* 9-» v ». * * **:' 

3 yrt.; 8-JS% i yr.; 3.73%, 3 manuir 
•notice. ' 


\ V| I* (Incorporated in the RmuOIIc of South Africai 


““ JaZEL 5VKSS ■ 

of the Company iC the dose ot biahMii^on l^th Januanj. » ioB SMashed 

■ pmqntlnB to the London fj**?** 1 , -ta°b?\ssuM ov the London 

trom share warrants to bearer In lermi ol a notice to ne i«“™ «,» — 

Secretaries and publish*! In February 1975. ■ 

The dhrideitd h declared subject to ««"**“!« Shea’ll ‘thTuMffio” 

or obtained Irom the C om pti "** ■■g‘™'? C! & <ra B iSScS a n TT^ LoiSon * £C2M 3XD 

|TS? , 2SJ!5f^5^ 

sms flww jsrs 

Issjr rtrsw s&s - —■ 

succeeding day on which such a rate it auoted.. - 

Dividend warrants will be w» led. .from either 1979. 

the office of the London Secretaries as approoriate on I6H1 February. 1 “ 7 * - 

H®£Ti£ra3SS?S^'«a 6 fc 

T3th January to 20th January. 1979. both days Inclusive. 

By Order of ttw Board. 



Mead Office and RepKtercd Office. 

Consolidated Boildlno. : 

Cor. Fo* and Harttson ■ Street*. 
iP.O. Boa 530 J. 


19W Decora her. 197B. 

V-’’; y.' ■ ••. • • • •••' ■■ 

’ 1 on don H Stain Bournemouth Torquay SCOTLRHD 

Les Must de Cartier -a name SlSTui.B m is.«t and wash K.S l l£g£ 5 -n i ?lSS !n 

■ . 1 » ,i;L .1 ~(+r Les Must de Cartier City Brighton WiimsJow m of! awn WW8P 

synonymous With beautliui gilts. Boubqueai Harvey WindsorYamalo DH Edmonds Finmgans 1 A Kaiteer-- Belfast 

.Unique, inimitable, exclusively - SL KST""’- WSSL.**. 

^ r ^^ ns r^ d ’ naturaUy ’ s r£ -r? ' ST ssr SSSMS^* 

Les Must deCarfaer SK**™- ££. ggST ^ 

.concessionaires welcome the KK„ £*' Ct0SS SL 53 ' 65 »"■■*« /««&=••-■!- 

American Express Card. Unique . ^ ondGa ,^ ' g-™^ ££_ 

inimitable— exclusively the real thing. £»«*«« southwest Hancock and sons / 

The one Card that lets you shop »«" ■» 2SST &SS. 

•in siyle, entertain in style, travel in ^ “52^“ 

style, in Britain and around the world. SST*;, 

Arthur A Berman 
Peter Burrows 

Diamond Gallery 



Fortnum and Mason 


Lamberi SBuller 

London County Jewellers 

Montague Jav 
The Pen Shop 
Sullivan & Powell 




Brent Crass 


David SmiltY 


Richard Raul 



Emile Jacques 

Frank Joseph 




Sanford Bros 


Leonard Dews 




D H Edmonds 

Jules Henri 


John Stevenson 


A C Pailthdrpe 


Jewellery Sales 




Hancock and Sons 

Mappm and Wfebb 


Davidson's The Jewellers 


SteHan Jewellers 

Richmond - Surrey 

Anthony Lodge 






Nottingham and Walsh 

Rn mgans 
Mappm and Webb 
JW Cassidy 

Apropos -Cardiff 

Haverfordwest /«© 


Le Collier Jewellers -Aberdeen 
Laing the Jeweller- Glasgow 
L A Kaitcer- Belfast 
Vfeirand Sons -Dublin 

The Jewellers and Silversmiths - Guernsey 
Bond Street Jewellers- Jeremy 
Rimeur Newman— Jersey 

I sUIIIVon O* ruircu | LGUIICIIU WCHJ i ^ 

The American Express Card is warmly welcomed by Les Mist de Carden . ■ 



• >.••; :.v 

Hr . ■*. 

‘■j . 

-.■.**■•7 >v 

- '■^•S r • 


FinattcikL : Tiines^ Wednesday December 20 1978 

Journalists open 

on sympathy action 


Journalists, yesterday opened its 
a ppeai against a' High ; Court 
ruling which the TUC feeds will 
severely . Tesfr’Ict sympathy 
action by trade, unions in indus- 
trial disputes. ‘ 

The appeal, before. Xord 
Denning. Master of the Rolls; is-, 
against a decision last week fay 
Mr. Justice Lawson to grant 
Express Newspapers an injuixc- - 
tion ordering the union to lift 
its instruction to Express group 
Journalises to black -copy, from 
the Press Association ’ news 
agency. : 

. The union has withdraws its 
instruction to .Express journa- 
lists, but in London they voted 
to -maintain the- blacking. The. 
union’s original : . -instruction, 
issued to all national news- 
papers, TV and radio stations, 
was in support of a strike over 
pay by 9,000 provincial 

Mr. Justice Lawson ruled that 
because the blacking, of PA 
copy at the Express was not " in 
furtherance " of a trade dispute, 
the union, calling it Sras, there: 
fore, not covered by the 
“ sympathy .action ” .clauses of 
the Trade Union and Labour 
Relations Act 1B74. 

Express Newspapers told .the 
Court of Appeal yesterday that 
the blacking of PA had resulted 
in a “poorer quality newspaper 
produced, at greater cost And 
less efficiency” and that the 
group had lost 30.000 copies pf 

Its. northern -and. Scottish 
editions in the week the black- 
ing began. 

The ~NUJ argoes that its 
action was in -furtherance «t a 
trade dispute.bnt3t agreed yes- 
terday that under' 1 the terms of 
the- 1974 Act The r ;edly trade dis- 
pute was the oho between the 
. Newspaper Society, the tow in- 
cial newspaper emplo yers b ody, 
and the union, not .between, the 
NUJ and the PA or the NUJ 
and the Express. 

The TUG is urging, its mem- 
ber unions to support the cost 
of the NUJ appeal. - It feels 
that the outcome is of such im- 
portance to the. .trade union 
principle ' of freedom to take 
sympathy, action, in industrial 
disputes if is prepared to “nance 
an appeal to the House of Lords 
if necessary. . 

The hearing continues today. 

• The Newspaper Society yes- 
terday increased its pay offer to 
the non-TUC affiliated Institute 
of Journalists from- 8-9. P er cent 
to 10.9 per cent The Offer will 
be considered by the- institute's 
negotiating committee on 
December 29. V . ' 

However, the , society made 
no improvement., in its offer 
during informal -talks, with 
leaders of the National Union nf 
Journalists. It is insisting that 
the union's provincial members 
call off their strike, now in its 
third week, before it resumes 
negotiations. V' 

‘Best deal of year 5 offer 
to insurance workers 

INSURANCE workers employed 
by General Accident are being 
asked to swept a deal which 
their union, the Association of 
Professional, Executive,. Clerical 
and Computer Staff, yesterday 
described as the best in the 
industry for the last year. 

The 2,500 APEX members 
have been offered a 10 per cent 


V. , , 7 - : 

Statement oE Consolidated Income / 

■ ■ r‘ . 

. ■ ( Dollars tn millions, except per share ) . 

.... Three Months Nine Months 
Ended / Ended 
September 30; September 30, 
1978 1977 1978 1977 

Net Sales — 

SU87D 31,075.8 $3,714.7 33.504.0 

Cost of Goods Sold 

Marketing, and 
Administrative Expenses 
Technological Expenses ... 


















- 70.1 



Income Charges (Credits): 
Interest expense 

Other— net 









* HJ 



49.1 ■' 

Income Before Income Taxes 





Income Taxes: 

Current : 





Deferred : — 









Net Income 

$ 46.8 3 24.9 $ 258.6 $ 254-3 

Earnings per Common Share: - 

Primary $ 1J8 $ 0.66 $ 7,08 S aS8 

Fully diluted 1-7 0.66. .7.01 6.i9 


Breaches of pay limit 
are ‘service to economy’ 


Unions were performing a 
service lo the economy by 
demanding wage increases of 
more lhau the 5 per cent stipu- 
lated by Ihu Government. Mr. 
Clive Jenkins, general secretary 
of the big white-collar union 
ASTMS, said yesterday. 

Mr. Jenkins, presenting the 
union's quarterly economic 
review.' noted that the mini- 
boom appeared lo be petering 
out. If Ihe bourn was to be 
sustained it wqulid be because 
of wage-led demand. 

“ Unions, in a funny sort uf 
way, are doing a service by ask- 
ing fnr more than 5 per cent." 
he said. 

He argued that the future con- 
duct of the pay policy and the 
out-turn for earnings depended 

on the outcome of negotiations 
with the public sector now that 
sanctions had been lined from 
private employers. 

Mr. Jenkins, union 
membership includes health and 
education technicians. is 
demanding special inquiries: 
une for the low-paid manual 
workers in public service, and 
one for the technicians. He said 
that his own union agreements 
were mainly in double figures, 
including productivity deals 
allowed for by the pay policy, 
and, in some cases, more than 
20 per cent. But he admitted 
that some of these deals were 
“catch-ups” for employees nut 
long in the union. 

The ASTMS review predicts 
an earnings rise nf 11-12 per 

cent to next August on present 
trends and policie.s — more if the 
public sector breaks through. It 
sees inflation as remaining 
roughly static unul February, 
wben it would rise silowly to 
10 per cent by June. This 
assessment was made before the 
OPEC decision ;o raise oil 

Unemployment would con- 
tinue in a range nf between 1.4 
and 1.75m tu the end of next 

ASTMS believes the oil price 
rise — with its effect on the 
value of UK uil and coal 
reserves — coupled with the 
opportunities for Industry 
opened up by imcro-electronlcs 
is cause for some optimism for 
the UK economy. 

Bank technology pact sought 


AN AGREEMANT to evaluate 
and price careers of senior 
staff in preparation for the 
introduction of new technology 
is being sought within Midland 
Bank by Mr. Clive Jenkins's 
Association of Scientific, Tech- 
nical and Managerial Staffs. 

The union believes that new' 
technology in financial institu- 

tions could have a major 
impact on careers, including 
the possibility of redundancies. 

It hopes to set up a working 
parts' with the bank lo study 
the issue and hopes that a 
package, including exira money, 
can be agreed with Midland lo 
cover dislocation resulting 
from major changes in career 

development and working prac- 

It believes that agreement 
with Midland could be a model 
for similar arrangements with 
other employers. 

The union is arranging a 
seminar in the New Year on 

‘No danger 5 
in collapse 
of sanctions 

By Our Labour Editor 

THE ENDING of Government 
sanctions against the private 
sector of industry would not 
cause a “ new irresponsibility 
to creep into negotiations.” Mr. 
Anthony Frodsham. director- 
general of the Engineering 
Employers' Federation, said 

He said that the federation 
shared the " universally held ” 
view that inflation was the 
great evil. But he added: 

While some people may feel 
that the use of sanctions against 
employers could paradoxically 
strengthen the employers’ case 
at the bargaining table, most 
have now realised what im- 
mense economic power the State 
can. exercise against private 
industry through the use or 
sanctions without the approval 
of Parliament 

“This is a new departure 
which smacks loo much of 
dictatorship and which could 
lead to the enforcement of 

all kinds of governmental 
whims without constitutional 

He said that employers would 
“heave a sigh of relief” at the 
defeat of sanctions. Some might 
take advantage of it to put right 
the worst anomalies, while 
others would see it as a chance 
to avoid spurious productivity 

Singer future hangs 
on union jobs vote 


threatened Singer factory at 
Clydebank will meet today after 
the company's warnings that it 
will'close the plant unless there 
is a commitment to increase pro- 

The future of the Clydebank 
site depends on whether the 
4,800 employees vote to over- 
turn a decision taken last week 
to reject a joint management- 
union plan which would have 
preserved 2;600 jobs. 

It now looks unlikely, how- 
ever, that stewards will call 
another mass meeting before 

Meanwhile, pressure on em- 
ployees to reconsider has been 
mounting. It was the subject of 
sermons in 30 Clydebank 
churches on Sunday. And 
yesterday. Strathclyde regional 
council published a report which 
estimated that closure of the 
plant would triple unemploy- 
ment in the town and reduce job 
opportunities by 20 per cent. 

The report also said that the 
loss of Singer would cost ihe 
Government between £19m and 
£ 21 m a year in lost taxes and 
unemployment benefits. The 
closure would lead to the dis- 
appearance of another 3.000 
jobs in other companies 
dependent on Clydebank. 

A management letter distri- 
buted to the workforce em- 
phasised the company’s decision 
not tu invest in Clydebank with- 

out a commitment from 
employees to wo-operate in 
labour flexibility, productivity 
improvements and an increase 
in the amount of work sub- 

The letter cmicluded: “We 
ask every Clydebank employee 
to consider very carefully: are 
2,600 jobs really to be cast aside 
rathe? than face the inescapable 
reality of the need to change 
and improve? This is the stark 

Shift working 
pact opens way 
for rolling mill 

THE British Steel Corporation 
last night reached agreement 
with unions on shift working 
which will allow it to operate 
a rolling null at Glengamock, 
Ayrshire, writes Ray Perm an. 

Open-hearth steelmaking is 
to end at the plamt this week 
and 720 men are being made 
redundant, hut agreement on 
the rolling mill means that a 
further 240 will continue to be 

A surplus furnace from a 
nearby foundry is being 
installed at Glengarnock at a 
cost of £1m to re-heat rolling 
steel transferred from the 
Ravenscraig works at Mother- 

salary' increase, a 2 .per cent 
improvement on last .year s 5 
per cent productivity . deal, a 
profit-sharing schetne, longer 
holidays, voluntary early retire- 
ment at 62 from:. 1980, and 
improvements to holidays and 
pensions. . 

The union said its. deal would 
give basic increases of between 
8i and 114 per cent . -' -: 


real issue 


THE STORM that blew up in 
Luxembourg last week between 
the European Parliament and 
the EEC Council of Ministers 
must now be causing opinions 
of that normally docile assembly 
to be hurriedly revised. The 
mouse seems to have become a 
man. After 20 years as a talk- 
ing shop, it must seem no co- 
incidence that the 193-seat Euro- 
pean Parliament should begin 
to sprout teeth when on the 
threshold oE next June's direct 
elections to a more muscular 
410-seat House. 

> For the real issue is not so 
much the Parliament's dehant 
insistence on a greatly enlarged 
Regional Fund inside a boosted 
1979 Community Budget. It is 
the Parliaments role in the 
EEC decision-making process. 
But before the defenders of 
Westminster's sovereignty and 
France's unholy alliance of 
Gaullists and Communists over- 
react, they would do well to take 
a second look at the European 
Parliament. It continues to be 
a body that prefers not to con- 
centrate on its own future. 

- There is, it is true, an 
aggressive school of thought 
Spurred on by the Luxembourg 
Secretariat that dreams of 
exercising the assembly's statu- 
tory powers of interrogating, 
censuring and even dismissing 
the Brussels Commission. But 
with only a third or so of the 
present members likely to 
return after June, there is an 
even larger lame duck element 
that believes it would not be 
Tight for the outgoing Parlia- 
ment to shape the future 
.. Whether or not attempts to 
strengthen the future Parlia- 
.ment are within the current 
body's competence is open to 
debate. What is not debatable, 
however, is the Parliament’s 
apparent refusal to tackle the 
problem of its own seat 
. Two months ago a vigorous 
.start was made in that direc- 
tion. A report on the future 
siting of the Parliament in a 
single permanent home was 
:completed by a group of Euro- 
•MPs, but has since sunk without 

The rapporteur was Mr. Willie 
Hamilton, Labour member for 
.Fife. In Britain his staunch 
republicanism may have won 
him notoriety, but in the Euro- 
Assembly his reputation is that 
of a fervent and effective mem- 

ber; just the sort of Parlia- 
mentary pugilist to punch out a 
report that would finally help 
settle the long-running saga of 
where the Parliament should sit' 
His 12-page document un- 
reservedly backing Brussels as 
the sole seat has, though, 
vanished Into procedural mists 

French and Luxembourgeois 
pressure continues to be at the 
root of the problem. Like two 
dogs determined to hang on to 
their end of the single Euro- 
Parliament bone, each prefers 
fmi re de mieux to keep the 
assembly split between Stras- 
bourg and Luxembourg. After 
next June the only chamber that 
can accommodate the 410 mem- 
bers will be Strasbourg’s Palais 
de l'Europe, but the Luxem- 
burgers have, their own con- 
struction ' plans afoot 

But it is not cost or national 
sensibilities that preoccupies 
Willie Hamilton so much as the 
Parliament’s diminished effec- 
tiveness. He maintains that 
Brussels' position as the home 
of the European Commission 
and the Council of Ministers, 
the trade associations, lobbyists 
and Euro-Press Corps, makes 
the Parliament’s presence there 
vital. The fact that the guiding 
Parliamentary committees 

usually meet in Brussels under- 
lines the point. If next year's 
newly-elected members are to 
fulfil their function of applying 
democratic checks and balances 
to the government of the Com- 
munity— and the notion of a 
tough budgetaiy watchdog is 
increasingly being discussed — ■ 
then Brussels must be their 

And that is the core of the 
conflict Which of the major 
EEC nations really wants an 
effective Parliament? Why 
should the executive institutions 
of the Community wish to see 
410 inquisitive parliamentarians 
install themselves in the build- 
ing that is already under con- 
struction just a stone’s threw 
from the Berlaymont? There 
remains one wonderfully mav- 
erick solution to the whole 
problem. The other day Willie 
Hamilton challenged a French 
member of the European Parlia- 
ment to suggest totally fresh 
premises that would be large 
enough. Without hesitation his 
socialist colleague replied: 
"Versailles, of course.” 

| f Indicates programme in 
U black and white 

BBC 1 

7.15 The Rockford Files. 

8.05 Secret Anny. 

9.00 Nine O’clock News. 

9.25 The Fall and Rise of 
Reginald" Perrin. 

10.00 The Great American 
Theme Park. 

10.40 Tonight 

: 12.45 pm Midday News. 1.00 
jPebble Mill. 1.45 Over the 
Moon. 3.53 Regional News for 
-England (exceot London), 3.55 
Play School. '4.20 Wally Gator. 
4.25 Jackanory Writing Competi- 
tion. 4.40 Rikfci Tikki Tavi by 
■Kipling. 5.00 John Craven’s 
Newsround. 5.10 The Moon 
Stallion. 5.35 Ludwig. 

5.40 NewsAVeatber. 

5.55 Nationwide {London and 
South-East only). 

6.20 Nationwide. 

6.45 Happy Ever After. 

Ail Regions as BBC-1 except 
at the following times: — 

Wales — 5.10-5.35 pm Bilidow* 
car. 5.55 Wales Today. 8.45 
Heddiw. 7.10 Fc A Fe (cyfres). 
7.40 Tomorrow’s World. 12.10 
am News and Weather for Wales. 

Scotland — S -55-6.20 pm Report- 
ing Scotland. 12.10 am News and 
Weather for Scotland. 

Northern Ireland — 353-3JS pm 
Northern Ireland News. 5.55 
Scene Around Six. 9.25 Spotlight 
on People. 12.10 am News and 


Want to leave the country (6) 
Lust possible minute and the 
phone's not working (S) 
Reduction in size of contract 
before time (9) 

Irishman going round the 
French fold (5) 

Incline to be thin (4i 
Cabinet minister with oppor- 
tunity to turn back (10) 
Country in which I arrive 
again {7) 

' Boy embracing female is 
whipped (6) 

Material for tying up a num- 
ber of horses (6) 

Flowers In bloom round ship 

! Mental outlook to tolerate 
and direct (10) 

Colour from the cruet (4) 
Muse and hesitate at nothing. 

Constant advantage in rapid 
succession (9) 

Armed traps could bo a 
murky set (S) 

Strike violently with stick 

used by 29 (6) 

6 Reduced prosperity in the 
valley (10) 

7 I transact business and it's 
perfect (5) 

8 Gain by violence but without 
legal wrong (6) 

9 Brewed in the north and 
crushed all over (6 V 

14 Friend in airport, could it be 
Hannah? (10) 

17 Seat from which it is simple 
to control meeting (4. 5) 

18 Came to a doctor badly toned 

20 Bird right to be a grumbler 

21 Card game for a financier (6) 

22 Oriental meets up with 
favourable regard (6) 

24 Collect for a church service 

26 Thought 7 unfinished (4) 
No. 3.852 


1 Refuse to acknowledge record 

mixture of mail (S) 

2 Strict last word to team- 
leader? Heavens! (9) 

3 Is unable to speak wbinlngly 

5 Eastern sea-bird takes a direc- 
lion that’s, endless (7) 

S E D Q a a E □ 
ej- 0 Sana ■ a- m 
□aassaE EBaassii 
a s □ n 

. 0 H Q n s -s 
EnEnnoEtiB asnna 
q a . ■ b e 

55 --E O E E 

HSEEsaans eddee 

n 0- a. a . m ode 

financial Times .We<fce^day : 

Berries for Christmas 

EVERYBODY will be hunting 
for holly with berries on it this 
week, and if you have no diffi- 
culty in finding it cheaply, you 
will be more fortunate than I. 
It takes years to grow your own 
holly to a fruiting size, so one 
has to rely on shops or a big 
bush in somebody’s hedge. The 
latter, in my area, have not 
made a good crop this-, year. 
The shops, as usual, have run 
short. So I have been thinking 
of the other berried shrubs, just 
as remarkable in their way and 
far more readily pleased in my 

The prize must go to that fine 
and ignored climber. Celastrus 
Orbiculatus. This is such, a 
useful plant for covering 
modern buildings, although it 
loses its leaves in winter. Why 
do town gardens use it so 
seldom, even will face 
east or west quite happily and 
grow almost anywhere? I 
suspect that they choose their 
climbing plants in summer 
When the Celastrus is just a 
curtain of leaves. Birds do not 
go for its fruits, so you only 
have to see it in full berry from 
November till January to want 
it yourselves. There is only 
one trick. Most forms bear male 
and female flowers separately, 
so unless you read this article, 
you would have to plant three 
or four together in order to be 
sure that girl and boy meet each 
other. As the plants take a few 
years to fruit for the first time, 
this is a trap you would wish 

to avoid. Far better, then, to 
order only, a hermaphrodite 
form, guaranteed by a good 
nursery. They exist and are no 
more expensive. When you find 
one, consider planting ft so that 
it runs up a smallish tree or 1 big 
shrub. If the background plant 
loses its leaves, too, in winter. 

usual form is called Bo tinier! 
Giraldii and is still probably the 
best. You would never' bother 
with the little mauve-white 
flowers in summer, so you want 
to place these remarkable shrubs 
near the back of a border where 
their leaves, like some larger 
Cotoneaster. will give you a 

the Verbena family. It was 
found in China and arrived here., 
through Germany where -jyout- 
still see some fine old bushes* 
of it. Not quite so easy as the 
Celastrus, it is still a berried : 
plant of great impact; ... 



the scarlet-red seeds will stand 
out boldly. They are all the 
prettier for a yellow-gold lining 
to the seed capsules which show 
off the red seeds so strikingly 
when the capsule splits. Up a 
wall, you are advised to stretch 
a long run of wire netting from 
gutter to ground on which the 
Celastrus will scramble. Other- 
wise, it grows far too vigorously 
for a haphazard frame of pins 
and string. One bisexual 
climber, not a rarity nowadays, 
and you can forget the holly 
at Christmas: stems of Celastrus 
are far brighter. 

What about the tantalising 
Call! carp a? r was lured four 
years ago into planting a group 
of these shrubs in one of the 
garden’s best places. Near 
Reading I had seen a magnifi- 
cent group -of their purple-blue 
berries In a classic herbaceous 
border, backed by a proper yew 
hedge. They drew all eyes. The 

dark mass while the border- 
plants are in flower. Callicarpa 
grows above six feet high in 
the end. - But from October on- 
wards, your group of three will 
be quite spectacular. You ought 
to plant three, because of their 
sex problem, but otherwise 
they should be quite easy. The 
berries are just past their best 
now but have lasted well for 
two months and escaped all 
birds. They range from lilac- 
blue to shocking purple-mauve, 
brighter than any comparable 
fruit. In a vase indoors, they 
are a match for any holly. 
When ray three plants are taller. 
I will dare to cut whole 
branches. For the moment Z 
try to hurry them along with 
manure at the roots, for they 
like rich soil, and a warm site 
in the flower bed, as they are 
certainly not a plant for a 
chilly half-shaded border. Oddly, 
the Callicarpa is classed with 

At a humble ’ level, the! 
* Chinese lantern,” that reddish- 
coloured seed-head, is . another 
favourite with the florists at 
this season. It is that plant with, 
a two foot high stem and ' an 
orange-red inflated seed pod like 
a pointed balloon. Convention- 
ally, it is mixed with Honesty’s 
pale stiver-white discs . and 
placed all over the- chillier 
corners of Christmas churches.. 
It is. however, worth growing, 
your own stock as it is so cheap, - 
quick and indestructible. Add aV 
packet of its seeds,, named 
Physalis Frahchettii, to your fist 
of spring bedding-plants . and- 
you will raise 20 young . plants 
as easily as if they were Lobelia. 
Their great merit is their ability _■ 
to survive in the dullest corners^ ‘ 
under trees, against north -walls, 
or behind tough hedges. They 
will spread their roots and 
attract no attention' until- 
Npvember and' December .when-' 
you are hunting rihmd ■ fbr : 
things to . put with the holly.;. 
Then, a good crop of these; 
bright seed-heads comes into;' 
its own. . : ' 


This year's holly: few berries for tire festive Mi 

Of course you can always fall 
back on the pyracantha, though; 
I find their berries less alluring 
than do the birds who tend to 

have stripped them baze : by this 1 
tiine 'of year. Sentimentalists 
will also fall for.the.Glastonbury:: 
.Thorn, though, its berries , are 
fat less conspicuous tfigh:;me^ 
rotated Hawthorn called * 
igus Lavallei, a toughV-Jand,.; 
neglected small . tree.;-' Tvhipfr 
deserves a space. Myself j 1 I.. 

think the common old seed pods 
on our native British S tinkin g 
Jjds — or Gladwyns Iris -4- .as 
bright as anything on sale. You ;; 
still find this plant running wild ;. 
in the woods, its. green iris-". 

leavessmeHingsooditiybf roast 
beef *whmrypu break- tiiem and 
nifi it^^qn^jpjra: hand. * Per- 
haps ;if. they 7 smelt ; of turkey. 
C2xrisai^>fl^^'' :: wouId. make 

more oE them/ ; But u clump of 

Trip* TVpefwT ^sfina; WflJ 'gTOW! in 

any: .'Cprner. - It-is quite 

fool-proof mid blocks out weeds. 
The' big ‘ orange-yellow seeds 
beat any obstinate holly and are 
always' < ignored by birds: “my 
way,, in sfi'ort, for a r happy 
Christman to you nil in seasons 
when holly-berries *nin short - 

Super Chant to give aspiring 
Thomson Jones a leg up 




leaving the army to join Tim 
Forster in the hope of carving 
out a career as a professional 
jockey, may receive further 
encouragement for the move at 
Warwick today. 

Having been successful on two 
Fred Winter runners last week, 
be rides his own Uplands resi- 
dent, Super Chant, in the 24- 
mile Warwick Chase. A smart 



hurdler in the 1976/77 cam- 
paign, winning two novice 
hurdles at Sedgefield, Super 
Chant made a creditable gradua- 
tion to fences last term. He 
beat Flapjack comfortably in an 
amateur riders’ event at Tees- 
side, and also scored at Sedge- 

On his only appearance this 
season Super Chant — bought out 
of Arthur Stephenson's stable 
for 5,400 guineas by Johnny 
Haine at ! Ascot's July 
sales— ran a good race. He 
finished second in a handicap 
chase won by Durham Town at 
Worcester a week ago. 

Sure to be all the better for 
that run, Super Chant is not 
harshly treated with 10 st 3 lb, 
and his weight will be further 
reduced by Thomson Jones 
claiming a proportion of his 
7 lb allowance. I take the com- 
bination to score over the 
Forster-trained Uther Pen- 
dragon, a falter at the fifth in 
that same Worcester event 

Two other possible winners 
for Winter are Ruby Wine and 
Swordsman. The first-named, a 
four-lengths winner from Timo- 
shenko here in his first venture 
over hurdles, and also a winner 
at Ascot may have his work 

cut out to concede well over a 
stone to Mount Pelle. 

But I see few problems for 
Swordsman. This Fine Blade 
gelding has impressed in recent 
schooling, following a fall at 
Newton Abbot, where he went 
well, in a race won by Main 
Ingredient until misjudging the 
sixth flight 

COLISEUM. Credit cards 01-240 *250. 
Reservation Q1-B3& 3161. - •• 
Winners 1678 SWET Award. >. 
Outstanding AcAlevement In Opera. 
Tonight 7.00 The Thiedng Magpie <4iul 

peril Every scene grips the attention' 
Tmi. Tomorrow 7.0o Jonathan Winer's 

prod The Mamage of Roaro “ immensely 
successful & enlcvsble.' Gdn. Fit. 7.00 
Dcr Rosenkmraller. Next pert. Dec. 28 
7.00 The Adventures of Mr. Brodcefc 
104 balcony seats grail for all perisr 
from 10.00 on day of pert. Stain 'or 
Dress circle ticket. 3-course a la carte 
dinner at the CAPE ROYAL ind. glass of 
wins, cover, service and . VAT before 
or after any evu- pert, for only £12-50 
per person. Tel. 01-437 9090. 

HAYMARKET. 01-930 "96362. 

-™‘- PENELOPE* “Z 

NIGEL • CHAfttm . 

HAWTHORNE • ■ ■ KAY.. . 

• A MG WAR AD REES * ;. . : 

and IAN OGILVY ml- 


In the Shirley Novices Chase, 
which has had to be 1 divided, 
the two I like best are Dikaro 
Lady, iu the first division, and 
Sir Gayle, who goes for Division 

HER MAJESTY'S. CC- 01-930 6606. 
evos. 7.00. Mats.. Weds, hod -SaL 3.00. 


sAOMnzvAK nr ... 

•• This stunning production oolcjuely. en- 
loyable," F. Time* "The funniest, 
musical around bar nbos.'.' L Mirror. 

22.00 — Dikaro Lady* 
12 JO — Emerald Sea 

1.00 — Patino 

1.30 — Super Chant 

2.00 — Mount Pelle** 
2.30. — Not Lightly 

3.00 — Sir Gayle*** 

3.30— Swordsman 

MAY FAIR. 629 3036. (Green Pkl.Tube) 
Evs. 8.00. Wed.' Mat 3.6,- Frl., Sab 6.16 

Dylan Thomas's comkr .masterpiece. 
Season Most- End Dec -30 

Weather for Northern Ireland. 

England— 5.55 pm Look East 
(Norwich); Look North (Leeds, 
Manchester. Newcastle); Mid- 
lands Today (Birmingham); 
Nationwide (London and South- 
East); Points West (Bristol); 
South Todav (Southampton); 
Spotlight South-West (Ply- 

All CTV regions as London 
except at the following- times: — 

by Be port West Headlines. 
Pretty Maids All (n A How. 

BBC 2 

am Gharbar. 


Play School. 

Test Cricket: Australia v. 

The Mid-Evening News, 

In Deepest Britain. 
Buffalo Bill's Wild West 


Music for Christmas from 
the Royal College of 

Beryl Reid: a great 

My Kind of Movie. 

Late News. 

Arena Cinema: Karel 
Reisz's film “ Dog 


SJiO am Pretty Baby. 11.00 Carol Coii- 
cart. 11.40 Oscar. 11-55 Tha Sweet 
Sugar Doughnut. 1J5pm Anglia News. 
2.00 Housupaity. - 3.20 The George 
Hamilton IV Show. 3.50 Tell Mo 
Another. 6.15 Mr. And Mm. 6.00 
About Anglia. 10.30 Tha Blua Lagoon. 
1120 am Tha Big Question. 


9.35 am Tha Widest Beach In the 
World. 10.25 Trapped Banaath Tha Sea 
starring Lao J. Cobb. 1.20 pm ATV 
Newsdeek. 3.25 The Practice: Julea 
and the Bum. 5.16 You're Only Young 
Twice. 6.00 ATV Today. 10.30 The 
Bravados atarring Gregory Pack. 
12.1$ am Richie Brockalinan. A Pigeon 
Ripe For Tha Plucking. 

HTV Cymru (Wales— -As HTV General ( TH€ .PIRATES Of PENZANCE. 

Ave- 6C1. B37 1672. LlnHI Feb. ZCTd • NATION At. THEATRE. . ; "928-5252 
OWfiLY CARTE Jr -3 OUVICR I open steseh Tonigh t. .7 JO 

* N ^ 1- Tonior. 2.45 A 7.30, MACBETH: 

fSK-JMSu * °* e ' 27 z - 30 - f LYTTELTON loioacenium KiaaliJ'M'C B 

°* c ' riwior. 7-45 TUX ffllLAHOAOlt »l 

Service except: 1.20 pm Penawdau 
Nevwyddton y Dydd. 4J0 'Hydwri'r^am 
Fod. 6.00 Y Dydd. 10.00 News at Ton 

followed by Report Wales. 

HTV West— Aa HTV General Service 
except: 1.20 pm Report West Headlines.' 
6.15 Report West. 

Tomor. 8 HEROP^nCTT plar-by »PaaLR*lllr 
muiic by Harfctson Rlrtwictla & Dwntnlc 

Many excellent cheap seats all 3 theatres. 

S r o» pert. Car. park. Resunranr 926 
33. Credk <arj. booklitgM MB’ 30SSL- 


9.30 am Tha Great St. Trinians Train 
Robbery. 11.00 Carol Concert 11.60 
Oscar. 11.66 The Sweet Sugar Dough- 
nut tl-30 pm Border Nows. 2.00 
Houeeparty. 320 Sure on Ice. 6.15 
Berme. 6.00 Lookaround Wednesday. 
6.2S Christmas Pie., 10.00 News and 
Border Weather. 10.30 Columbo: 
"Identity Crisis." 12.15 am Border 
News and weather. 


9.30 am Ukaliq. R55 Munster 
Go Home. 11.30 Survival. 12.00 
The Adventures of Rupert Bear. 
12.10 pm Rainbow. 12.30 Sounds 
of Britain. 1.00 News At One. 1.30 
Crown Court 2.00 After Noon. 
2.25 Disappearing World. 350 
You're Only Young Twice. 3.50 
Tell Me Another. 4J!0 How. 4.45 
Fanfare for Young Musicians. 
5.15 Batata ft 

5.45 News. 

6.00 Thames at 8. 

6.25 Help! 

6.35 Crossroads. 

7.00 This Is Your Life. 

7.30 Coronation Street. 

8.00 The Eric Sykes Show. 

9.00 Edward and Mrs. Simp- 
son: “The Abdication.’* 

10.00 News At Ten. 

10 JO Quincy. 

12.00 am Christmas Fie. 


1.18 pm Channel Lunchtime News. 
What's On Where and -weather. 2.25 
Family. 5.16 Etninardale Farm. 6.00 
Channel News and weather. 6.10 
Arthur. 10.28 Channel Late News and 
weather. 10.32 Feature Film: ! "The 
Charge Is Murder." 12.25 am Epilogue 
followed by news and weather in 


8.30 am Aboriginal Legends. 8.60 
Seaward Tha Great Ships. 10.10 Morn- 
ing Mystery Movie: McMillan and Wife. 
11^0 Oscar. 11.55 The Sweet Sugar 
Doughnut, tl.25 pm News and weather. 

2.00 Women Only. 3-25 The Hactric 
Theatre Show. 5.15 Christ me a Call. 

5.20 Crossroads. 16 00 Scotland Today. 
tf.30 Elaine, tha Singer of the Song. 

10.00 News and Scottish News. 10.30 
Catch Me A Spy. 


9.30 am Tha President's Plane Is ' 
Missing. 11 DO Carol Concert. 11^0 
Oacar. 11.65 The Sweet Sugar Dough- 
nut. 1.20 pm Southern News. 2.00 
Houseparty. 3.20 Little House on tha 
Prairie. 5.15 The Undersea Adventures 
ol Captain Nemo. 5.2) Crossroad*. 

6.00 Day by Day. 10.30 Southern News 
Extra. 10.35 Who Slew Auntie Roo? 

12.20 am Weather followed by The 
Holly and the Ivy. 

’S. From ft .30 

mm m 

'- mm ' 


l i. , j iJr.nj-l 1 . m i 


9.25 am First Thing. 9-30 Canada at 
War. 10.00 Survival Special. 11.00 
Carol Concert. 11.40 Oscer. 1155 The 
Sweet Sugar Doughnut. 1.2D pm 
Grampian News. 3.20 Rolf Hams; Show. 


9.46 am The Good Word tallowed by 
North East News Headlines. 9.50 Boys 
Will Bo Boys. 11.00 Carol Concert. 
11.40 Oscar. 11.56 The Sweet Sugar 
Doughnut. 1J2Q pm North East News 
and Lookaround. 200 Women Only. 
33S0 Stars On Ice. 5.15 Laverne and 
Shirley. 6.00 Northern Lire. 10.30 
Alcatraz Express. 12.25 am Epilogue. 

PALLADIUM.. CC, ' Of -437 . " 7373. 
Opens Tonight at 7JI Tonior. 
and fri. 730. Subs. Ohf- 2 -ay * 7.30. 
Oauny la rue r 

' as “Merry Widow Twankie In 



PICCADILLY. -From 0.30 am. 437 4506. 

Credrt card bfcqs, 836 -f 071 . 
Moil-FtL' at 8.D0. Sat. 3.1 S and 8.15. 
and a handful or cobbers - 

£tarT BARRY 



10.10 am Davy Crockett. 11.00 Carol 
Concert. 11A0 Oscar. 11.55 Tho Sweet 


Sugar Doughnut. 120 pm Lunchtime. 
3-20 The Electric Theatre Show. 4.1B 
Ulster News Headlines. t5.15 Cartoon. 
5.20 Crossroads. 6.00 Reports. 6.35 
Hogen's Heroes. 11.25 Bedtime. 


5.15 Emmerdafa Farm. 6.00 Grampian 
Today. 12.15 am Roflections. . 12.20 

Grampian Lata News. 


930 am Sesame Street. 1025 Tartan. 
11.10 Wildlifa Cinema. 1145 Cartoon 
Tune. 11.46 A Handful of Songs. 
J.20 pm This Is Your Right. 3.20 Stars 
On lea. 5.10 What's New. 6.15 Cross- 
roads. 6.00 Granada Reports. 6J30 Mr, 
and Mrs. 8.00 Wednesday at Eight, 
10.30 Marilyn Monroe in "Bus Stop. ' 


9.25 am Traffic. 11.00 Carol Concert. 


tS.25 Private's Progress. 11.00 Carol 
Concert. 11.40 Oscar. 11.55 The 
Sweet Sugar Doughnut 1ZJ7 pm Gus 
Honey bun b Birthdays. 1-20 Westward 
News Headlines. 2.25 Family. 5.15 
Emmerdale Farm. 6.00 Westward Diary. 
1028 Westward Late News. 10.30 Film: 
"Tha Charge Is Murder.** 12.25 am 
In Praise Of Christmas. 

"rrriii !'i j-Vi'-n 

I11-M.LB.-U.1 H. 

11.40 Oscar. 11-55 Sweat Sugar Dough- 
nuts. 120 pm Report West Headlines. 
1.25 Report Wales Headlines. 2.00 
Help Yourself. 3.20 The Dectric 
Theatre Show. 520 Crossroads. 6.00 
Report West. 6.15 Heoort Wales. 6.30 
Emmerdale Farm. 10.00 News followed 


9.30 am David CopperfieJd. 11.35 
World Worth Keeping. 1.20 pm Calen- 
der Nows. 3.20 Stars On Ice. 5.15 
Mr. and Mrs. 6.00 Calendar (Emley 
Moor and Belmont editions). 11.30 The 
Black Torment. 11.55 Electric Theatre 


W.T. 499 STS7 

{EflflFfsh.siiMftlest. Mm at-2.00. 4- OS. 
6.20. B-40. Las Hay. 

A. I'm 

TTTrTTTi > M . 1 J JWrt 

BBC Radio New Wavelengths 

1053k Hz/285m 


3 mat H: /247 m 
& W-WJ’rtif stereo 

BBC Radio London : 
USSkHx. 206m & W.NU 

Capital Radio: 

1548kHz. IMm & 95.8 V M 



& 88-91 vbf stereo 

_ 200k Hi/ 1500m 
A kfMSvhf 

LbMim Broadcasting: 
USJJkHz. 2blm Si VZJvbf 


(S) Stereophonic broadcast 
5.00 am A& Radio 2. 7.00 Dave Lee 
Travis. 9.00 Simon Bates. 1121 Paul 
Burnatt Including 12.30 Nawabeat. 

2.00 pm Tony Blackburn Including 
National Pop renal. 421 Kid Jenson 
Including 5.30 News beau 720 As 
Radio 2. 10.00 John Peel (S). 12.00- 

5.00 am As Radio 2- 

VHF Radios 1 and 2-5.00 am With 
Radio 2. 10.00 pm With Radio 1. 

12.00-5.00 am With Radio 2. 

12.00 Midnight News. 2.02-5.00 am 
You and tha Night and tha Music (5). 


tMedlum Wave only 
*5.35-10.05 am Test CrickaU 

Australia v England. 6.56-7.00 Weather. 
7.00 News. 7.05 Your Midweek Choice: 
Record raquasu (part 1) (S). mfwyp 
record requests (pan 1), Mozart. Tele- 
mann, Solar. Bach, Handel (B). 8.00 
Naws. 8.05 Your Midweek Choice 
(part 2), Hummel, Chopin (mono). 


Berwaid (S). 9.00 News. 9.05 Thu 
Week's Composer: Tchaikovsky (SI. 

5.00 am News Summary. S.03 David 
Allan (S) including 6.15 Pause lor 
Thought. 10.03 Jimmy Young (S) 
including 70-30 Cricket: Second Test- 

12.15 pm Waggoners' Walk. -12.30 
Harry Rowell's Open House fS) includ* 
mo 1.45 Strorta Desk. 2J30 David 

mg 1.^5 Sports Desk. 2J30 David 
Hamilton (S) including 2.45 and 3.45 
Sports Desk. 4.30 Waggoners' Walk. 
4.45 Spona Desk. 4.47 John Dunn (S) 
including 5-45 Sports Desk. 6.45 Spans 
Desk with taping results- 7.02 Robin 
Richmond (SJ. 7.30 Listen 'to the Band 
with Charlie Chester (S). 8.15 

Semprini Serenade (S). 9.00 Music lor 
Christmas (simultaneous with BBC-2 
TV) (S). 10.02 The News Huddimes. 
10.30 Richard Hsarna says Be My Guest. 
11.02 Sports Desk. 11 .05 Brian Matthew 
introduces Round Midnight, including 

Week s Composer: Tchaikovsky (SI. 
10.05 Holiday Special. 10.25 Music for 
Organ by Pachelbel. Couperin, Garber. 
Pascetti. Buxtehude (S). 11 M The 

People's Oratorio; Last programme on 
Handel's Messiah. 1.30 Barber and 
Schoepbenj (S) /pan 1). 12.00 Short 
talk. 12.10 pm Concert (part 2). 1J» 
News. 1-05 Concert Hall: Elizabethan 
String Music (Si. 2.00 Cardiff Univer- 
sity Recital (part 1): Hodd inert, 
Beethoven (5). 2.30 Wards. 2^6 

Recital (part 2) Beethoven ( Si- 3-2D 
The Renaissance of English Chambai' 
Music: HowbIIs. Bridge. Delius (S)- 

435 Building e Library (SI . 5.45 Home- 
ward Bound (S). 6 JO News. 8.3S At 
Home with conductor Morfc Elder (51. 

7.3D Handel: Massiah (part 1) (S). 
8,2S Interval Reading. 8.30 Messiah 
(part 2). 9.2S interval Readinq. 9-30 
Messiah (part 3). 10J5 ■ The Two 

Hangman; Brecht and Wedekind: 

Cabaret of Songs. Poems and Sketches. 
11.45 News. 11-50 Tonight's Schubert 
Song (S). 


6.00 am News Briefing. 6.10 Farming 
Today. 6.25 Shipping forecast. 5.30 
Today including 6.45 Prayer for the 
Day. 7.00 and 8.00 Today's News, 7.30 
and 8.30 News Headlines. 7.45 Thought 
lor tha Day, 6.45 Serial Reading. 9.00 
News. 9.06 The Living World. 9J35 
A Word In Time (3). 10.00 News. 

10.05 Gardonera' Question Time. 10.30 
Daily Service. 10.45 Morning Story: 
"My Christmas Carol." 11.00 You. the 
Jury: Cannabas should be legal. 11.45 
Listen with Mother: "The Cat Who 
Wanted to Sing Carols." 12.00 pm 
News. 12.02 You and Yours. 1UQ Dr. 
Finlay's Casebook. 12.55 Weather. 

1.00 ThB World at One. 1.40 The 
Archere- 1-55 Shipping forecaar. 2.00 
News. 2.02 Woman’s Hour Celebrates 
Childhood. 3.00 News. 3.05 Afternoon 
Theatre: "The Wonderful ‘O’ " by 
James Thurber. 3.50 Choral Evensong 
from St. Paul's Cathedral (S). 4.35 
Story Time: "The Thirty-Nine Steps." 

5.00 PM. 5.50 Shipping forecast- 5.55 

Weather. 6.00 Tha Sik O'clock News. 
6.30 My Word | (S). 7.00 News. 7.06 
The Archers. 7 J30 Misery Christmas. 
Anthology for sympathisers with 
Scrooge. 7.4S Let's Go to the Gaiety: 
history of London thowra (S). 8.46 
Analysis: Chino. 9.30 Kaleidoscopo. 
8^8 Weathor. 10.00 The World TonighL 
1030 An Actor in his Time. 11.00 A 
Book at Bedtime* "The Enchanted 
Places. " 11. IS Throo Chsrade* for 

Christmas. 1.30 The Unforgettahles. 

12.00 am News. 12.15 Shipping fore- 

VHF— 6.00 am With If. 6.25 Pro- 
gramme news. 6.30 With II. 8.50 
Regjonal News. 6.56 With II. 750 
Regional News. 7.55 With II. 12J® pm 
Reoional News; weather (sxcepr London 
and 5E). 1.00 With If. 2-00 With If. 
5.50 Regional News. 5-55 With n 11.00 
Study on 4: Ensemble. 11.30 With if. 

OPEPfj. Lotawter Swnre. <93 D Gnu. 
PyoOA .Dfy..- doors Oden f. 30.. ^.30. 7. OS. 


5C8 W 4 ryyerd om-^ 9t.i, * iLetal 5q. 439 
4470. SUPEBMAN .'CAT,. 'Proas. 2 .40. 
SiS: 8.?Or Us show Rfa4M-3tU 10.55 

“♦r Oxford . Circus- --437 



t * 

SO.! 1978 

iiKiiiSJW^MaENT pace 


e master of the Dulux dog 
earned his pedigree 

Jason Crisp talks to the head of ICI’s Paints Division 

V- Vl* 

i '3EW§ ;r V<»- 1 ?L" l T. ■ 

BRIGHT PLASHING lights, con- 
jurors ' and general razzamatazz . 
might ncH'fiMOi typical -of ICL 
But then Dulux, part of the 
paints division; is toe -chemical 
- gnmfs^hnly major • consumer 
product ' 

So when Dulux hacf its 25lh 
birthday earlier thm. manth. it. 
took the opportunity- -to '.hang' 
the dram, wining and . dining 
any journalist who - knew the 
difference between' matt -and 
. gloss. .. . . 

Presiding over this with some 
bonhomie was the bluff chair- 
man of the paints division, 
Denys Henderson. Quite at 
home and quite the salesman; . 
not at all the sort of bureaucrat 
you might expect To make his 
way up through the ranks of 
one of Britain's largest com- 

At 46. Henderson Is relatively 
young to be heading one of 
ICTs nine divisions; after all. 
it is only a short step from 
there to the main board. Even 
more unusual was. the route. by 
which he arrived at his present 
job. He is thejflxst chairman of 
an ICI division who has also 
held a senior post In. the com- 
pany’s head office at London's 
unihank . . 

As in many other large com- 
panies, there js inevitably some 
friction between ICTs divisions 
and its head office. Henderson 
is obviously well placed to 
appreciate and analyse both par- 
ties' point of viewy 

His preference between head 
office work and that of line 
management as division head is 
abundantly clear. Describing his 
present job, his voice betrays an 
enthusiasm which never quite 
broke through when he was 
talking of his tune as general 
manager, commercial, - at Mill- 

Sitting forward in his chair, 
Henderson says be reacted to 
the paints division appointment 
last year with “ enormous 
pleasure,” and he says with a 
smile: “Well, we'd, bought a 
house within 20 minutes of 
Slough” (where the division is 
based). Then, with more 
seriousness, he adds. -“-More 
important. I Was pleased to get 
back into line management” . 

like, her says, many other 
people in an operating division, 
he was initially reluctant to 
move into headL'A)ffice w*en the 

AFTER ALL the publicity in 
recent weeks, almost every 
employee in . the United King- 
dom must by now he aware that 
bis pension., will suffer i£ fc» 
changes jobs. ... 

Much less, well-known is how 
much money . people lose in 
practice by Job-switching; the 
heated discussion about preserv- 
ing pension levels has been con- 
ducted with .a notable absence 
of hard facts and figures. 

This deficiency has now been 
partly rectified by a survey 
r carried out by the Central Lon- 
don ’ Branch of .. the British 
-Institute of Management. The 
"results make stark— -not to say 
disturbing reading. 

The .first study concerned a 
man aged 35 earning £8,000 a 
year who. was changing Jobs 
after 10 years? service with an 
employer. The survey- asked S2 
companies what would be the 
“ lamp. sum transfer value” for 
such an employee leaving their 
service, that is, the value of. his 
accrued pension rights being 
transferred to hisnew company. 
The average amount from the 
42 companies- which- provided 
meaningful figures was £2,667, 
But when those companies were 
asked what sum/ would be 
required by the pension scheme 
for such an incoming employee 
fully to secure, his past service 

Desys Henderson: “ 1 was pleased to get back Into line management 1 

call came in 1974. For Hender- 
son, tilers was-.' an additional 
reason: he had bora- in his 
existing job of fertiliser director 
In the agricultural cffvfeion lar 
only -two years;' ..’-Too short 
because I was enjiwing it. and 
because it n not long enough 
to prove yourself” 

But the offer of commercial 
general manager was hot one 
he could refuse. ICgave him a 
staff of 660 and nteaht he was 
in day-lo-day conflict’ with the 
main board as on*tb£-spot com- 
mercial adviser. \ 

Such a positron" is dearly a 

useful t.nreer boost as It ensures 
its holder gets noticed. Hender- 
son agrees, but p aints out Iho 
high risk of being ‘deposed to 
the “ penetrating gaze "- of the 
board every day. • • 

The switch from agriculture 
to commercial was .jwt as 
drastic as it sounds! Henderson 
qualified as a soWxntor from 
Aberdeen University.- where he 
also received an MA In Modern 
Languages. After.' ..two - years’ 
national service. : seconded to 
the Army Legal Services. he 
decided against becoming a 
‘'local” solicitor although he had 
developed a , Caste for the 
“drama” of the courtroom; 

Henderson likes 'to datoribe 
life as a series of 'lucky acci- 
dents, and It was one 'of &ese 
which took him to ICL He read 
ah. article in the Scottish Lav/ 
Gazette, by the ICI company 

secretory which mentioned it 
needed solfcvitorn, so he wrote to 
h::>i end eventually joined too 
paints division as what ho calls 
a ■' scribbler” in ihe company 
secretary's office. 

His progress through the 
company secretary hierarchy 
was steady until he eventually 
l ice- mo secret ar-y of the Nobel 
explosives division, aged 31. 
Atier one year his career look 
a sharp change of direction 
when he wa.-; made new venture 
manager at Nobel. 


He admits it was a totally 
alien field In him. not least 
because, unlike the divisional 
secretary's office, it was away 
from toe malnctre.'-m of the 
business : " Nobody phouet you, 
no one contacts you." 

Diversification was quite in 
vogue at the !.me but l he job 
taught Henderson what he 
describes as a fundamental 
truth; only ever to diversify 
where you have genuine com- 
mercial and technical 

After three years he moved 
again, this time to become 
general manager in charge of 
licensing and catnlvats at ICI's 
Agricultural Division. It was 
a nemra! experience. 

Henderson believes every 
businessman should have h?d 
his “path and suffering." by 

which he means someone 
actually proving his track 
record by sitting through a 
problem and seeing it o*rt to a 
successful conclusion. ‘Appli- 
cants to the paints division 
please note, i 

*• Nor me it was my time 
spent in catalysts." says Hen- 
derson. By comparison with 
the rest of the agricultural 
division, it was a very small 
(00- person) though profitable 
business, both licensing and 
selling catalysts. 

When he took over. 70 per 
cent of the business came from 
the US. and much of this was 
threatened by the arrival of 
N.irth Sea oil. Through a force- 
ful sales effort, v:i;h much time 
spent in negotiations for licen- 
sing arrangements, the level of 
overseas business had risen 
under him to 90 per cent. 

“It was about as near to being 
an entrepreneur as you could 
get in a large organisation. You 
could say that was when 1 came 
of age commercially.” 

Although he subsequently 
spent two years as fertiliser 
director — a much more typical 
ICI senior management role — 
the contrast between his life in 
the divisions and his work at 
hesd office must have been 
great One of his main reser- 
vations about working iu Mill- 
hank was not being profit 

As commercial general 
manager • at Millhank from 

Why you should think twice 
before changing your job 

rights, the average was £8,693 
—three times the amount. 

. For., a man aged 30 earning 
£5,000 a year with five years' 
serviee, the -disparity between 
the two amounts in and out was 
even more marked. The pension 
schemes would pay out on 
average a sum of £712 for leav- 
ing. but would require £2,712 
for someone joining. 

" But the project did not 
confine itself simply to collect- 
ing statistics. The BIM went 
to the various sectors of the 
pensions industry — consultants, 
life companies and pension fund; 
managers — and sought their 
Views. Not ’ surprisingly it 
received a lot of woolly answers, 
since the industry cannot re- 
concile natural justice to em- 
ployees on. the one hand with * 
the extra cost burden on the' 
.other. Indeed, the survey points 
out that the insurance industry, 
representatives take the view- 
that ** people who leave their ; 
employment do so for their own 1 
benefit and therefore can hardly 
expect to be treated decently"; 

The survey therefore con- 
cludes that transferability to 
ensure a full pension could only 
- be brought about by' legislation 
.which would impose a set 6f 
standards on pension schemes. 
The survey then goes on to dis- 
cuss the possible implications of 
such a course of action, admit- 
"ting that in doing so the costs 
of providing pension scheme 
: benefits could increase by 
as much as 50 per cent. 

Mn the light of the survey's 
findings, the authors suggest a 
set of questions that managers 
should ask on seeking fresh 
employment. They should 
ascertain at the outset what 
would happen to their pension 
/rights if they were to leave 
Rafter certain specific periods; 
Vthe resulting loss should be 
; ..compared with staying with the 
same employer. 

: . It is also suggested that 
^managers should seek certain 
‘ information from their present 
_ employer with the object of 
measuring the loss on changing 

jobs. Such information would 
include comparing the amount 
of contributions paid by the 
employer on behalf of the 
individual, accumulated at the 
rate of interest used by the 
fund, with the amount being 
transferred to a new scheme. 

In addition, this should be 
compared v/itb the value in 
capital terms of his accrued 
pension rights though the 
authors do not discuss the 
actuarial implication of this 
latter figure. 

This is useful advice, but 
whether it would be practical 
is another matter. To talk to 
a prospective employer about 
one’s rights in case of leaving 
that employment, seems tanta- 
mount to talking oneself out of 
gening a job. The questions 
would have to be framed ex- 
tremely tactfully, and it is 
doubtful whether the answers 
could he produced easily. 

The survey accepts that 
people considering leaving a 
company do not want to dis- 

1974 he bad charge of a number 
of departments, including pub- 
lic relations, central purchasing 
and trade affairs. One of Ihe 
more interesting aspects, he 
recalls, was dealing with govern- 
ment as the company's govern- 
ment affairs adviser. 

One of the other strong plus 
points for someone coming in 
from the divisions was the 
chance to see the whole com- 
pany picture from the centre. 
It was. though, much more 
frustrating, “because yon are 
so much less in charge of 
your own destiny." All the 
same, he says he found the 
work a good deal harder than 
people in the operating com- 
panies might believe. 

When he became chairman of 
the paints division, the industry 
was in a mess. But, as he points 
out, it is not a bad time to join 
an industry when it is at the 
bottom of a cycle. 

As chier executive he decided 
to concentrate on four major 
functions : set and maintain 
financial targets; get the 
organisation righl; look at the 
business a decade hence: act 
as custodian of the corporate 

The first phase at paints has 
been what Henderson calls 
"getting the eons right." Part 
of this has been the divesting 
of non-essential businesses. 
Typical of this was the 
annouocenv-nt *his week of the 
sale of 57 retail outlets to Great 
Universal Stores. These follow 
a number of other subsidiaries 
from the division sold in his 
“ purification " policy. 

For the future. Henderson is 
committed to taking the paints 
division further along the path 
into Europe; nnf simply to try 
and recreate Dulux's success in 
the UK, li-t: rather acting for 
specific countries with specific 

Although he may be making 
ten-year plans for the division, 
it is unlikely that Henderson 
will be there lo see them ail 
come to fruition. He refuses 
to talk of his aspirations, 
thnugh — this profile is going to 
ensure ho gets quite enough 
ribbing from his colleagues, he 
says, anti ho certainly does not 
want to be thought a great ego- 

Whatever the future, be 
claims: “I don’t believe I will 
over have more job satisfaction 
than I have now." 

close the fact to their employer. 
D therefore suggests that they 
should be able to ' get the in- 
formation required -on a con- 
fidential basis. 

A more practical suggestion, 
which the survey puts iorward 
as an alternative, is to ^nclude 
this information on an annual 
benefit statement Legislation 
is pending on the disclosure of 
information to employees.' It 
would be helpful if this point 
was dealt with in any pres- 
cribed benefit statement. 

The most useful point assc* 
dated with this survey, how- 
ever. is that it has been sent 
to the Occupational Pensions 
Board. The Board has been 
asked by the Government Minis- 
ter concerned to consider the 
whole question of transferring 
pensions on change of employ- 
ment and has admitted that it 
needs to know what happens at 
present. This survey will help 
fill that gap. 

Copies o/ this survey entitled 
“So you thought you xcere earn- ; 
ing a two-thirds pension ? — Well 
think again ” con be obtained 1 
from the Central London Branch , 
of ihe British Institute of Man- 
agement, cfo Metre, 23, Lov-er 
Belgrade Street. London. SW3. 

A glint 


WHAT WOULD be the advant- 
ages ar.d disadvantages of a 
Channel Tunnel? For most 
people, the question belongs 
alongside other such brain 
teasers as “ will the shower 
replace the hath?" in Ordinary 
Level English language exam- 
inations of the 1960s. 

But it could still be featuring 
on examination papers of the 
1980s. Much depends on the 
course of events in Brussels, 
Paris and London in the next 
few months. 

The point of asking school- 
children to write about what is 
some times referred to as the 
Loch Nest Monster of civil 
engineering — subaquatic but 
never seen — is. of course, that 
the issue presents ? list of sfal- 
v/irt pres in contention with a 
team of sturdy cons. 

Moreover, the arguments 
waver between the political, 
geographic, economic and even 
psychological — involving the 
question of how “we” (the 
British) can be made to "feel" 
more European. Quite what 
“ they ” are supposed to " feel " 
is less frequently debated, 
though no doubt adventurous 
" O " level candidates have 
attempted to do so. 

In the end. of course, the 
matier is far from academic. 
Somebody thumps the table and 
savs: “ How much is it going to 
cost? " 

Eric Short 


by our legal staff 

CGT relief 

I am the proprietor of a 
property in Scotland, which 
Is dee to be acquired by the 
Local Authority for re- 
development, and Is leased to 
a private company of which I 
am the managing director and 
majority shareholder. It is 
Intended to re-iccate the 
hcslccss at other premises 
owned by ihe company which 
will require extending. 

The 1978 Finance Act pro- 
vides for roli-over relief In 
respect of Capital Gains Tax 
where an asset owned by a 
shareholder In a family trad- 
ling company is replaced and 
used in the company’s trade. 
As the ground on which the 
.. extension would require to 
be built is owned by the com- 
pany, would th»s relief apply 
it the new building was 
financed by the proceeds from 
the sale of the existing 
premises to the local autho- 
rity and - leased to the 
company ? 

..During the company’s 
occupancy of the existing- 
■ premises additional buiWi*i?s 
were added and financed by 
the .company. Would that 
portion of the purchase price • 
to. be paid by the local autho- 
rity which related to these 
additional buildings be due to 
the company or to myself as 

The- precise facts are not quite 
dear, -but it .looks as though 
you will not personally be 

eligible for CGT rollover relief 
(under section 47 of the latest 
Finance Act). 

However, the company may 
qualify for CT rollover relief 
in respect of the compensation 
payments to which it is en- 
titled. from the lo^al authority 
or yourself (or both). 

The company's accountants 
are best placed to advise you, 
from their background know- 
ledge of the company’s tax 
history Cand possibly your 
own), and presumably both you 
and the company have engaged 
professional assistance over 
your respective claims for com- 
pensation. If a second opinion 
on some aspect of tax law or 
Scots land law is required, it 
may be simplest if your 
advisers write to ns direct. 

Unissued shares 

A limited company was 
formed two years ago with an 
authorised share capital Of 100 
shares of £50 each. No time 
limit was put on the offer for 
sale and one-third is still out- 
standing. Can any existing 
shareholder now take up all or 

part of those outstanding 
shares without m farther 
reference to the other share- 
holders or most a reminder be 
put to. all existing share- 

The answer to your query will 
depend on the Articles of 
Association of the company. In 
the absence of any express pro- 
vision in that behalf there may 
well be an implied requirement 

TTSTZr/.V.Snk.T ” 

that any unissued shares must 
be offered to exirting share- 
holders pro rata when they are 
to be issued. Such an implied 
term would depend (inter alia) 
on the circumstances surround- 
ing the formation of the 

Grazing field 

For some 33 years I have 
let a field of seven acres of 
grass to a farmer for grazing 
cattle, on an annual agree- 
ment Have ] ensured that the 
farmer cannot claim owner- 
ship of the field by virtue of 
long usage? 

If 1 were to allow the fanner 
to plough the field and put ft 
down to crops, and assuming 
I renewed the agreement 
annually, would it also be 
impossible for the farmer to 
claim ownership eventually? 
Assuming that you have col- 
lected a rent, however small, 
you will have prevented the 
farmer from claiming ownership 
of the field. The same would be 
true if the land is used for 
arable farming, but here the 
protection of the Agricultural 
Holdings Act 1948 will attach 
to the holding to enable the 
tenant to remain as a tenant so 
long as he <is farming efficiently. 
Hie series of short grazing 
leases avoids that disadvantage. 
No legal responsibility can be 
accepted by the Financial Times 
for the answers given in these 
columns. All Inquiries will be 
answered by past as soon as 

kick over 

The answer four years apn 
was £2bn and Anthony Crosiand 
stood before the House of 
Commons and said it was too 
much. Recentlv Sir Richard 
Marsh, who was chairman of 
British Rail at the time, said in 
his memoirs that the Govern- 
ment had not even looked at the 
rail wa^s’ revised financial 
analysis when this decision was 

At any rate, the view of the 
present Transport Secretary. 
William Rodgers — who is not 
himself adverse to the odd flight 
of fancy about the psychological 
importance of being European 
— ]'s that Crosl anti's Channel 
Tunnel is dead. So. long live 
Rodgers' tunnel? 

Maybe. But just to emphasise 
that he really did intend to kick 
over the traces of the ancien 


tunnelling regime. Rodgers two 
weeks ago sold The Mole. 

The >Ioie is a machine Cros- 
land bought for £250,000 to dig 
his tunnel. Indeed, it even set 
out to start Europe's missing 
link by burrowing 250 yards 
through Shakespeare Cliff at 

Now it is owned by j. C. 
Sanders, scrap ni n tal dealer, of 
Chatsworth Road. Stratford. 
East London. He paid £20.000 
for the Mole, so at least some- 
one made a bob nr two out of 
The European vision. In a 
nearbv hole, a Mole of an earlier 
tunneller of 1S87. still rests, 

. So now the decks and the 
heads are clear. We can start 
to rc-c.vert the brainpower of 
10.000 fifth formers and almost 
as many planning consultants. 

British Rail and Sncifte 
National® des Chemfns-de-fer 
have made the running under 
Rodgers so far with n plan for 
a single-track, rail-on I v tunnel. 
wh*ch would cost around fiCOOm 
with an" annual eanseity of 
nerhap-T 8m pa<*sen°ers and 8m 
tnn« of freight. Total roll-on 
roll-off and rnnta ? n<?ri*pd freight 
botw^en and the "«?pror 

fnn* initial ports in 1977 was 
15.8m tonnes .’nr) proh*hlv lam 
parson set «!. Both figures are 
growing steadily. 

S’ nee to<> tiro rri'wevs tp- 
no°ned tb“ : r tnnrH talks this 
year, rival faction* havp. 

nat’irally. off thp f r 

d"eam < 5. T hesp inside to® idoa 
n r ? £3.*V9 r'rttory.'v ra'I 

v-'b'ch ’S fti'nil™/! h v 
w, TTpra^p o f the 

Cr a 2* n T London Cn**n« ! i — v/hn 
pTon wants tn b”ilri an OIvficy 
r'*-f jn dock’ands hO'"’P th^ 
JO«5S (Vvr«n ? n Gptvioc. TtriR ;r 

eaiTpr( thinking b : °. Not s»r- 
nrnns'v. Mr. Gntfer the 
ef-mv'T* of the civil construction 

o*hnj. bri'* no i’T f 'T’ i ’nc’’ , s 

the ,,F, in-' ,p,, r of 
particuler idea, but say that 

technology will nov; permit a 
bring® with iwo-miJe-spans-r 
twice those of the Humber 
Bridge — compared with the 
750-loot spans of the 1963 
bridge proposal, which was dis- 
mi.:S*-d as a hrzard to navi- 
yalif-n in the world's busiest bit 
of son. 

A third -oneept involves sub- 
merging a scries of five concrete 
tiihrs. cany ing six lanes of 
motorway and two railway lines. 
The toad tubes would come up 
for a:r' way across on a 
pair of sandbanks, where 
motorists wnu>d be able to 
drink tea and watch super- 
tankeri bearing down on them. 


No price is on the head of 
this design yet but it will be 
more cost-effective than the 
railways’ p ; an. say its designers, 
headed by Sir Bruce White, who 
at 93 is just over half the age 
of the Channel Tunnel concept 

Will any of the designs 
actually be built? Brussels and 
Paris both like the idea, but 
the latter has at least short- 
term budgetary problems and 
the former is gestiiting even 
larger dreams. Richard Burke, 
EEC Transport Commissioner, 
is about to publish a Green 
Paper suggesting EEC transport 
infrastructure of £21bn to the 
year 2000. 

He also has at bis disposal a 
£6S0.000 transport infrastruc- 
ture research budget, a part of 
which seems certain to be 
spent upon yet another wide- 
ranging analysis of a fixed Hnk 
for the Channel. 

Meanwhile Sir Peter Parker, 
chairman or British Rail, is 
framing visionary rhetoric 
about the dangers of sinking 
info »be "familiar eiderdown 
of national indecision." He says 
we'!l have a tunnel by 1988 even 
if ne has to borrow the money 
in commercial markets to do it. 
But toe French are still sitting 
on the first outline report on 
the plan, waiting for a stronger 
puto from Mr. Rodgers, who is 
waiting for ... . 

Transport rorrespondents 
need not fear the loss of their 
longest running story. 

Ian Hargreaves 


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Knaaicial Times 




Messing about in 
boats programmed 

FOR SOME time past much of 
: the running in calculator- 
assisted navigation for the 
yachtsman has been made by 
Hewlett-Packard. Now, how- 
ever, Texas Instruments has 
brought out a direct challenge 
■in this teeming market with 

■ what it describes as a complete 

■ electronic navigation package 
' for the small boat user, launched 

under the name "Navigatronic." 

TI’s 53 programmable calcu- 
lator is the heart of the pack- 
age. offering up to 430 program 

■ steps. With it goes a marine 
navigation solid state program 
library and a 12/24 volt adap- 

‘ tor/charger. 

I-:arinc? navigation quick- 
reference guide and a 220 volt 
r»c adaptor-chsreer for shore use 
is also supplied. And to keep 
everything within the marine 
tradition, the whole is offered 

■ in ■* h.-ass-bound mahogany case. 
■ TI believes the package will 
handle the cutirc range of 
navigational calculations for 

. racing, cruising and occan- 
. creasing — a library of 30 
: standard, frequently used pro- 
grams is available at a touch 
of a key. 

These include coastal r.aviga- 

■ tion routines to compute rels- 
. live or absolute position, speed 

made send and true course; 
celestial navigation programs 
for easy sight reduction and 
position plotting; end sailing 
uud tactical programs to help 

O SSA 7 ES 11 &LS 

in racing. 

Of special significance, when 
so much reliance is being 
placed on a black box such 
as this. Is the diagnostic pro- 
gram used to verify the proper 
operation of the calculator, as 
well as the correct interfacing 
(between the program library 
and the calculator itself. 

For celestial navigation, pro- 
grams provided include time of 

sunrise/aonset/twilight; planet 

location; star identification: 
sextant correct; fix by two 
observations, etc. And in ocean 
racing or sailing, considerable 
assistance is given by programs 
which permit great-circle sail- 
ing, dead reckoning and 

rbumbline navigation: speed 
and course made good and 
distance and bearing to The 
mark. There is a modified wind 
program for loading into other 

For the less intrepid who want 
to stay close to shore, the coastal 
package contains time/speed/ 
distance equations; distance to 
horizon; velocity needed to 
change relative position; velo- 
city and current vector effects; 
course to steer/speed calcula- 
tions and fix from two objects 
in latitude and longitude terms, 
among others. 

Further details on this navi- 
gation package from Texas, 
attention -John Gibbons. Mar. ton 
Lane Bedford MK41 7PA. 0234 


Watching aver the flow 

DDE TO be installed and com- excise duty P a J2?i e 0 nrt C ^nati& 
SSoned SR the Texaco to both the auantiW a^ Quatity 

North Sea UK Company, is a 
£500, (MX) complex for the custody Jiskoot recenJy 

transfer of Oil and gas in the, microprocessor based mstra 

North Sea. The complex con- 'mentation system housea 
sists of four stations that will DIN-size cases and wnfommg 

provide metering and meter with the 

nomas facilities for oil and gw the relevant I - 

production in Texaco’s Tartan leum code. 

British Airways has taken into service two 
custom-built trucks for washing aircraft. 
One of them is seen here In use at London 

Heathrow. Built by Edbro of Bolton, Lancs, 
oh Bodge Commando GU chassis and 
powered "by Perkins diesel engines, they can 
raise a washing team to a height of 24i feet. 

Board Is easy to fix 


A'\ ASBESTOS-FREE building 
board. 6 r,:n thick, made of 
e.. loin in silica*.?, reinforced with 
Cv! ivies? f.Lro. lie*: b?en intro* 
d.c?'! by Cr?e Boards and 
r.c:.?. Ivor Lane. Uxbridge 
Ur-0 *J.7‘^ fUxb lde* C7111). 

•ZrV.ei Haste-rboaiyl, it hr.s a 
Orjs 1 -ire rr.ifg, conventional 
li :■:;<! er povsr woodworking 

tools can be used to cut. shape, 
and drill the beard, which is 
sufficiently flexible to allot/ 
cu^.’es to be formed. 

It is offered for lining eaves 
and porch soffits, pipe covers, 
beater ard boiler cupboard 
linings and base pads, linings to 
walls. roofs and ceilings, 
integral garage linings, parti- 
tions. and facings to fire doors. 

ACOUSTICALLY controlled, an 
engineered package form of two 
compressors brings nc;se emis- 
sion levels down below 75d3A, 
APE-Bellirs ropor\~. 

Models VHlo ar.d VL1G water- 
ccoled reciprocating units. ta*;r 

for most general and industrial 
air requirements in the medium- 
duty capacity range up to 1*5.3 
cubic metres per minute f 
dm) and pressures up to 10.5 
bar g i.i 50 psig'i. 

Greatly reduced operating 


VSOP Fine Champagne Cognac 

‘The Brandy of Napoleon" 





. Talephoha Reddltcb - ' 

• T«TBic337l2a. .• 

fiG ^nie contract far -the work fiscal transfer 0 SECURITY 

involved was a joint undertak- in the Texaco _ statiOM^daWo. - 
ing between the two British- "in automatic in-line sampling. 
companies. The engineering The' automatic collection ot 
project management and design representative product samples,, 
of tiie systems to the spedfica- which jg a crucial P 81 * 01- “ra- 
tion of Texaco’s consultants • custody transfer operation, in 

Ameron of Croydon weie the the stations, is under^c^n Dy ■ TjsES^ of sihailer eiosei- 
responsibility of Jiskoot Auto- Jistoot’s Series JJOO samplug cn^f^l^evison . networis;- 
control of Tunbridge Wells, system. The R^SiceSystems is .IntrOdiiriiig-- 

Kent, and fabrication of the housed m glass fibr ® a set 0 f three' basic packages!' 

giant skid-mounted stations has cases designed to a camera aid mopfc- 

Teen undertaken by Heeco ^ com^ve conditioM ^d One ^^.Tas'-tTa .- ' 

STS ZpuS tte iK cameras needing ^ne. mdntor. 
gSrJal““ther^ in screen with ^two^JT jgtt*: 

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The four stations will handle 
crude oil metering and proving, 
natural gas liquid metering and loading 

- , 55 hateh the and foe thh^a«ckage .has. 

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function that hiT bereme S? ^.bridge Wells tan,' »»«*<“» to thmr proteetjw. 

increasingly more important about a third of which service 'noosing. - 

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standards of measurement are -been supplied for installations. SriSi 0 ^ fC ?^ e Tisiit- 'vision- 
also essential to calculate the , overseas. _ w tn . a _o : 


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capability. This camerawffi give ; 
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ADDITIONS ARE announced to . 150/i50mm and ; an 

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Short, settling times for all . with watertight front zipper, the 
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power-driveo impact tools can fastenings must be closely con- ar^pot unccanmoxL . 
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Opera- dn Rhin, Strasbourg 


' Just over a .decade ago the. 
‘ Strasbourg .“Festival staged 
Roussel's greatly . admired -but 
seldom -perform ed^- Padm&batL 
This automa the Op6ra‘du Rhin, 
cen tined on' Strasbourg but cover- 
ing Colmar -and Mulnouse (and 
not to be confused’ with' the 
DOsseldorf / Duisburg Deutsche 
Gper am Rhein -further dowhr 
stream) mounted tbs work again. 
. This time they were helped by. 
the Comity Albert Roussel, pre- 
sumably a Ftedcb equivalent of 
our Delius Trust— Podtndcoti, 
requiring .few . soloists' but; a. 
large orchestra,' chorus and 
ballet, -is 3 big^undCTtakiBg. for 
‘ a mediom-sued company.. Pro- 
ducer ( Bronislaw Harowicz ) and 

designer (Th6opbane Uatsoukis) 
-were the same as before. 

One lives in hope of hearing 
this elaborate, rarefied score, at 
once strong and elusive, really 
well done. The best I have heard 
was the concert performance at 
the Coliseum given by the 
English Bach Festival In the 
composer's centenary y ear, 1869. 
That had the. advantage of 
1 Martinon’s conducting but was 
diminished by the LSO!s extra- 
ordinary decision to play not In 
’ the orchestra pit but on the 
stage, so that the sound trailed 
away upwards, Podmdwrfi is a 
strange, difficult, hybrid, an 
oriental tale -only superficially 
related to- such 19th-century 
spectaculars as • L’Africame, 
more on autumn flowering of 
the post-Wagnerian period in 
France that produced PeHdos. 
the Arione et Barbe-bleue of 
. Dukas and Faurt*: s P£n£lope. 

' Debussy and Ravel dreamed — 
to some purpose— about the East. 

• Roussel went there, twice — in 
1893. and for a longer time in 
1909. On the second occasion he 
travelled, in the chance company 
of Ramsay MacDonald, to the 
ruined city of Chitor near Delhi. 
The ruins and their legends so 
impressed Roussel that* on his 
-return be asked his friend Louis 
Laloy, orientalist as well as 
musician, to write him a libretto 
about the 13th century Queen 
Fadm&vatf. fair as a lotus flower, 
who killed her husband King 
Ratan-Sen and- -followed him to 
the pyre, rather than submit to 
the Mogul invader Alaouddln. 
who demanded her body as the 
price of sparing the city. 

The situation, striking-in itself, 
is short on incident — more suit- 
able for a. symphonic poem than 
a two-act opera.- Roussel’s derision 
to make PadmOmxti an opera- 
- ballet, reviving the extinct 
tradition of Rameau, only com- 
plicated matters. TRe .dance 
scenes (warriors, dancing girls - 
and palace women paraded In act 
1 for the benefit of Alaouddin; 
funeral rites -and the. purification 
bE Todm&vad lb act 2) are well 
enough motivated, hut they take 
up time that might have gone to 
deeper exploration of- character. 



Darwin: the best in the world 

The fart that tbisls a tragic 
opera-ballet puts an .additional 
onus on the choreographer— gim- 
crack orientalism won't do, but 
Roussel ’a use of oriental scales, 
does not automatically make the 
music suitable for . genuine 
Eastern dancers. One can hardly 
hope for moreihan decent echoes 
of Fokin's Prince - Igor and 
Sh&ierazade. In this vein; more 
or less, were GenninaLOasado's 
dances at Strasbourg, reasonably 
well conceived but, weakly 

Roussel’s orientalism; and bis 
own . strongly personal: language 
only really fuse, briefly but 
memorably, in the: passage 
describing the Queen’s . beauty, 
which becomes a kind =of Pad- 
mi vall-motive. Sometimes, in 
the first act especially, one feels 
** this doesn’t work,**, only to be 

confounded a few bars, later by 
admiration, fpr Roussel's super- 
fine craftsmanship and '.delicate, 
poetic feeling. -The •" Eastern 
colouring, however, is the least 
valuable part of the music. More 
important are the dark, sinister, 

brooding atmosphere and the 
tragic quality that gradually 
takes over. In a sense the score 
was a war casualty. Virtually 
finished when Roussel was called 
up in 1914, the orchestration had 
to wait until he was demobilised. 

The first performance (at the 
Paris Opera, for which ii was 
written) did not take place until 
1923, by which time the high- 
minded seriousness of the con- 
ception may well have seemed 

The Opera is Pod-jndpatrs 
natural home, and to the Opera, 
it is said, this production will 
eventually go. It may need a 
little more than It has got at 
present to fill those spaces satis- 
factorily. Standards in the 
French regions have risen so 
much in recent years (and under 
Alain Lombard the Opdra du 
Riuo has -won a good deal 
more than local respect) that one 
may, I hope,, be forgiven for 
feeling some disappointment. 
Roussel's choral writing is often 
divided, with generous use of 
bouebe fe rm£e effects that easily 

- - . 

Padmavati'^Woi’ses Parker as Rat-Sen . 

go straggly: the Strasbourg 
chorus was not always strong 
enough to make up for limited 
numbers. The sense of shape and 
forward Impulse shown by the. 
conductor. Claude Schnitzler. 
brought good orcbcsLral playing 
in the second act. Sonic of the 
first bad been edgy in the wrong 
way. Played without sufficient 
finesse or conviction. Roussel's 
dissonances sound simply wrung. 

Of the soloists oofy Jules 
Bastin as the Mogul conqueror 
and Vinson Cole in-tbe small but 
telling part of the Brahmin had 
the measure of the music — every 
phrase carried, almost every 
word was clear. Yet even Mr.’ 
Bastin was defeated by the pro- 
ducer's feeble handling of the 
final scone, where Alaouddin 
bursts Into the temple to find a 
column of smoke rising from the 
royal couple's ashes. Ratan-Sen 
and Padniavati were both re- 
placements. Moisei Parker lias 
a warm ’ tenor voice of some 
promise and a striking appear- 
ance, but his French is poor and 
his gestures inhibited. Ani 
Yervanian sang musically, but 
projected and moved shyly, not 
the first singer to find Padmfr- 
vuti's low tessitura uncomfort- 
able. One point of progress 
since 1967. The performance I 
heard then was poorly attended. 
The other night Strasbourg's 
pleasant theatre was full. 

More Roussel the follow ing even- 
ing in Paris, at the Palais des 
Congr£s in the complex that also 
houses the air terminal. Here 
the Orchestre National, under 
Pierre Dervaux. played the Third 
Symphony. The large hall lover 
3.500 places) is a little loo 
resonant. Noticing that some of . 
the detail in Chabric-r's rumbus- 
tious Giociidolinc overture went 
Tor little, one feared for the 
Roussel and for Stravinsky's 
Capriccio, which wa* to follow 
after the interval. Yet in these 
thinner scores the lines did not 
tangle but expanded in a way 
unusual yet not unpleasant. 
Little was lost — except ( 


Dervaux’s broad view of a 
symphony often hustled through 
as though the logic of the 
musical argument were what 
chiefly mattered, was not 
dependent on slow* speeds. Some 
of them, in fact, were definitely 
fast The slow movement, the 
finest of the four, could be heard 
to relate to Padmdratf, not in 
exoticism but in grandeur and 
sonority. It was a pleasure to 
hear the pianist Monique Haas 
again — cool, elegant and affirma- 
tive as ever in the poker-faced 
playfulness of the Capriccio, a j 
work which seems to our loss, to 
have disappeared from English 
programmes. Pianist and orches- 
tra both ensured that Stra- 
vinsky’s sallies came whizzing 
like darts through the ball. 


No apologies 3re offered for . - •.? . - %v - • y." m * 

returning to the subject of The . ■ 

Voyage Of Charles Darwin 

because now that we have seen • 

what started out looking like a 

in the- end to lie the greatest * 

achievement on British tele- t 

vision' this year. And since the ^ 

down’ by" international awards 

best there is, it is not unreason- V 

able to go further and say that 

Ironically bar tcin may not . y-.. " 

win all that many awards, how- 

festivals, and prize schemes are ft ' 

sider single programmes. This j fc. 

important fact about television 

is that by ns in? its continuous r r 

availability m the home it can J& 

Aside from the low cost per . 

argued that it is in this respect 
alone that television is superior 
to the cinc-rua or theatre. In 
technical /aesthetic terms it has 

fore, seem rather silly that the ' M - ' ^Jglgggg 

only way to win any of those jpg . 

famous awards is by making 

Still, whether or not Darwin « 

wins a Zinc Stoat or two is iin- . . 

material: thy important Illinois . 

series' managed to fulfil not . _«v ’ ' 'HI® 

just one of the famous require- Malcolm Stoddard with the " Beagle " 

meats of broadcastiaif listed in 

the preambiL- to the BBC Char- more widely and sensibly over It was managed quite unobtru- 
tcr, but all three simultaneously: the world's philosophies, sively in the course of conversa- 
it was "disseminating informa- Dnrirm could fairly be called a tions. first among his family, 
tion, education and entertain- "religious" series in that it des- then — centrally — in the ward- 

tcr, but all three simultaneously: the world's philosophies, 
it was "disseminating informa- Dancin could fairly be called a 
tion, education and entertain- ''religious" series in that it des- 
ment** all at once. bribed, without ever becoming 

It was also like so much that boring, the changing shape of 
is really good on television in one man's religious thinking 
being beyond categorisation: from unquestioning belief as a 
you could be sure that it wasn't boy, to heedlessness as an 
sport, situation comedy or cur- undergraduate, through doubt 
rent affairs but beyond that it as a scientist to final disbelief, 
was hard io define. Nor was this consideration 

It could, for instance, have purely incidental to the series; 
been run quite happily in one of the effects of Darwin’s deduc- 

"religious" series in that it des- then — centrally — in the ward- 
en bed, without ever becoming room and with FitzRoy aboard 
boring, the changing shape of the Beagle. The climax came, 
one man’s religious thinking of course, with the famous meet- 
froni unquestioning belief as a ing of the British association at 

Oxford which was reproduced 

undergraduate, through doubt f 0 r the last episode, 
as a scientist to final disbelief. There have been complaints 
Nor was this consideration that the series gave too little 
purely incidental to the series; time to events after the voyage. 

the religious slots, and not tions upc 
simply because religion on tele- were pro 
vision has (thank goodness) important 
recently ceased to deliver un- of this 
diluted Christian propaganda apparent 
ami started instead to range preferabJ) 

the effects of Darwins deduc- and certainly more would have 
tions upon religious thought been welcome. Yet the title was 

were profound, and it was 
important that something 
of this should become 
apparent on the screen, 
preferably via his own attitudes. 

Old Vic 

Arts Theatre 

jg|; The Gingerbread Man 


The White Deer 


? Last year’s seasonal hit' by Gingerbread Man behind a roll- .the Gingerbread Man off her 

David Wood was Tevived on Ing pin and bring him to Life shelf, wins our favour by leam- 

Monday afternoon to the obvious a Physiognomy for - t0 make friends. And the 

. delight of an audience in 'dlSf'and MouEe has ^ attractive aide, 

four to ten-year-oki age bracket, ^ngs happily all over the scan3 P erm S around in a pin- 
It is a beautiful and original place (and Neil Fltzwiliam is striped suit and failing to be as 
piece of work, featuring ■_ the a very spring-heeled dancer), .dastardly as he would wish, 

residents of a Welsh dresser in' offering to bounce onto the top., even ii he does want to eat 

the Big Ones' kitchen. The Big. and respne some honey something brown and gingery. 

. ; Ones are the adults. i»to only £ r iD , v0 0 n n ^ e °°dve«ur« pr£ ^ Pe Pi Kr “ d tte G “E er - 
impinge In the form o£ loud derate, involving the Old Bag- bread Man can aJi command in 
voice-overs, threatening the dust- (Judith Bruce), a sad remnant equal proportions the support 
. biq for Herr von -Cuckoo, their in the tea-pot, anxious lest any- . and attention pf the children, 
appetites for the .Gingerbread one touch her tin^ perforations; a fact that pays off wonderfully 
Man. ' and Sleek the Mouse (Keith " well in the cleverly orchestrated 

Von Cuckoo ’..(Larry Damn) Varnier), a gangsterish rodent . mouse-trapping, 
has lost his voice, Urns diminish- in search of a nibble who is . Finally, with von Cuckoo 
hotels flnaliy tnpped endef a Iar f restored to f«J) everyone 

£ fl ’• dock. His friends, the tendi- 111115 by **** others with the fe allowed to let rip in good old 

mehts of the house, are worried vociferous aid of the audience. panto-Tyrolean style. My five- 
- . r’. I iJ ! about 1dm: Salt' (Tim Barker) - What is refreshing and un- year-old companion hardly 

usual about the show (for -, n^dedjsking- .She was on her 

. .• * 


: • \: wi«*' 

t L 

about him: Salt' (Tim Barker) 
is a cheery, bearded- soul in blue 

and white stripes and given, to Svhieh Mr. Wood has also nro- V*, 1 atid yodelling fit to bursL 
nautical " phrasology; while ."“r ? as f . T. bet even Derek Jacobi, our 

<e « VlQed SOme CC arming songs) IS lstMt niH Vir- ingtiniiA Mol' ha* 

Pepper (Cheryl Branker). is a ^ded some charming songs) is latest Old Vic matinee idol, has 

red hot chonteuse who can re- that no one character has a ,never heard such a delighted 

dace you to sneezing. fils with monopoly on our sympathy, racket as the curtain fails, 

a twist of . her grinder. They all share it Even the Old* The director is Jonathan 

a twist of. her . grinder. They all share it Even the Old, ’• the 

Salt and Pepper discover Bag, who starts off by chasing . Lynn. 



. Adrian Mitchell’s adaptation 
of "The White Deer," James 
Thurher's charming fable, has 
much to recommend it, cleverly 
written and well produced by* 
the Unicorn Theatre for Child- 
ren, at the Arts Theatre, with 
simple' hut solid sets and good 
effects. And the company is 
good, too, Michael Wynne, 
genially lugubrious as the good 
King Clode, his three sons, 
Thag, Gallo w and Jam, all 
handsome, their wit and virtue, 
as is only proper in a fairy 
tale, in inverse relation to their 
seniority. Judy Riley is the 
perfect, beaudfui, over-forget- 
ful princess, the still centre 
around which the story turns. 

The three princes persuade 
their father to take them hunt- 
ing in the enchaoted forest 
There they find the white deer, 
which at length they bring to 
bay: whereupon, to their 

natural astonishment, but not 
the king's, who had had the 
same trouble with their 
mother, it turns into the 
princess. The sons, of course, 
aspire for her band, and must 


undertaking dose attention if each turn in 

sfcverally the perilous quests foe fairly complex story is to be 

for the golden tusks of the 
Great Blue Boar and to face 
the Dragon of Dragore and the 

followed, and the continual 
subtle play on words that 
characterises Mr. MitchaH’s 

The Voyage and not The Life of 
Charles Darwin, and assuming 
that the budget simply would 
not stretch further the distribu- 
tion of time seemed right. 

To return to definitions 
though: the series certainly 
deserves the description “docu- 
mentary " since producer 
Christopher Railing and writer 
Robert Reid appear to have 
worked scrupulously from the 
papers and journals of Darwin, 
FitzRoy and others. It is hard 
for a layman to be sure, but 
from the checks which are easily 
possible it seems that all temp- 
tations to enhance reality— even 
in the smallest details — were 

One of the most satisfactory 
aspects of the series stemmed 

Mock Meek of Chardor. She nicely judged and literate text from this: the repeated neces- 
racanwhiie still struggles to successfully .caught. It is. sity to remind oneself that 
remember who she is. Things therefore, rather more suited lo although it often looked like a 
are never quite what they seem; the older child, whose concen- Hollywood epic it was actually 
the Wizard Ro keeps a kindly, trat >on is less likely to wander, all true. Yet it was conveyed 

watchful eye on events; and all f “l’ 1 .? J e , by £f tors ’ and ^ in addition 

rioVlt . t . , attenti\e. The White Deer to being a "religious and a 

come, r ght in the end. will make an excellent documentary programme it was 

it is a play, not a simple Christmas treat, with a great also a drama, 
entertainment, and does demand deal of pleasure to offer. Nor was it just second-rate 

• V & A Christmas raffle 

The Associates of the Victoria temporary Art at £500 and more. 
and Albert Museum (the V and Altogether. 11 pictures are to be 

A’s own charity) has launched raffled and are on view in the 
the first V and A Christmas main entrance of the V and A. 
raffle. Prizes are original works Tickers are available at the 
of art by leading contemporary main entrance or by post from 
artists. AH the artists have Nicky Bird at the V and A. The 
donated their work for the draw is to be held tomorrow with 
benefit of the Museum. a champagne reception at the V 

The pictures include water- and A and will be made by Dr. 

sity to remind oneself that 
although it often looked like a 
Hollywood epic it was actually 
all true. Yet it was conveyed 
by actors, and thus in addition 
lo being a •• religious " and a 
documentary programme it was 
also a drama. 

Nor was it just second-rate 
drama employed in the service 
of other interests: from Malcolm 
Stoddard and Andrew Burt 
playing Darwin and FitzRoy, 
right through to the extras who 
pulled the Beagle's gig. the 
standard of acting was first rate. 

No matter bow good the 
acting, though, the whole thing 
would ba,ve remained simply a 
good location-based dram.i 
(with the special attraction of 
a working sailing ship) if it had 

colours, etchings, aquatints, litho- Roy Strong from a facsimile of hot been for the animal photo- 

graphs. a collage, a drawing and 
a screen print — several of which 
are valued by Christie's Con- 

tbe largest wine cooler in the 
world made by Charles Handler, 
circa 1740. 

graphy in the Galapagos and 
elsewhere. This, which qualified 
the production to call itself a 

wildlife series in addition to 
being a religio-docu-drarna, gave 
it a very special attraction. . 

But pc-rnaps its greatest 
virtue in the end was the way 
it exploited that ability of tele- 
vision to accumulate facts and 
impressions, scenes and ideas, 
week by week, and build from 
them something immensely 
impressive. At the centre of the 
programmes was the idea of 
natural selection and the most 
important single function of the 
series was to show with admir- 
able coherence The steps which 
led lo its formulation: Darwin's 
early hunting, biology at Cam- 
bridge, the prehistoric skeleton. 
The seashell fossils high in the 
Andes. The specialisation of 
animals in the Galapagos, and 
the final reluctant publication. 

Its triumph was in conveying 
that idea and so very much 
more at the same time. 

The other compulsively watch- 
able series of this season has 
also been a drama firmly based 
on history, though this one has 
a]] the attractions of a fairytale: 
kings and queens, palaces and 
untold riches, glitter and gaiety, 
and at the focus of attention 
the story of a commoner and 
a prince — Edu-arci end Mrs. 
Simpson, of course. 

However, right at the centre 
of the effect accumulated by this 
series is a conundrum, and one 
which I suspect has been created 
by television and not passed on 
from history. The story of the 
abdication is nothing »f it is 
not a love story, yet there .is 
nothing about the character of 
Mrs. Simpson as written and 
acted here which any sane man 
would find lovable. The Prince 
of Wales (or "David" as we 
have all learned to call him) is 
presented as eminently sa-ne. 
Therefore somebody has got 
something wrong somewhere. 

In fact they seem to have got 
quite a lot wrong; while the 
“royalist" faction is blessed 
with convincing characterisa- 
tions and most impressive acting 
— notably from Edward Fox as 
the Prince, Peggy Ashcroft 
(superb) as his mother, and 
Nigel Hawthorne as his lawyer 
—the other faction is startlingly 

It is not just Cynthia Harris's 
Mrs. Simpson, but also Jessie 
Matthews as her Aunt Bessie 
with an accent which sometimes 
suggests South Carolina and 
sometimes South Minims: and 
also David Waller playing 
Stanley Baldwin in such a way 
that one expects him at any 
moment to exclaim *' Pshaw!" 
with the emphasis on the P. 

None of this will stop lorn 
viewers watching the final epi- 
sode tonight and grontiv enjoy- 
ing it no doubt. But it has stop- 
ped the series achieving great- 

Never did any attempt at up- 
staging come such a desperate 
cropper as that of Independent 
Television Sport on Tuesday last 
week. Sidling into the schedules 
one day ahead of BBC's well 
established annual Sports Re- 
noir. ITV transmitted (for the 
first time) the Sports Writers 
Annual Awards Night. 

Whereupon winner Steve 
Ovett turned down the prize, 
and nominees Kevin Keegan, 
Ian Botham. Lester Piggott. 
Arnold Beckett, and the entire 
Liverpool football team proved 
unable to attend. Lacking the 
satellite links which allowed the 
BBC on Wednesday to see and 
talk to Botham in Australia. AJi 
in America, aud so on. poor old 
ITV Sport were reduced to 
showing us Dickie Davies laugh- 
ing with understandable ner- 
vousness as award winner Daley 
Thompson made unmistakable 
gestures at award winner Sliar- 
ron Davies and announced that 
it was not the lG-ycar-oId swim- 
mer that he fancied but her 

If this is an example of the 
standard of snorts programme 
with which ITV expect to sup- 
plant the BBC one can only pity 
soccer fans as they await the 
disappearance of Match Of The 
Day and the appearance of ITV's 
alternative series, following its 
famous soccer deal. 




Tolccmas: Phnntino, London PSA. Telex: 886341/2, 88389? 
Telephone: 61-248 8000 

Wednesday December 20 197S 

S.VJ- ■' 

Why the 

Financial Times. Wednes^Det^iDbe? ^ 


’• V-; 

An error by 

■ i 

Mr. Desai 


V - 

THERE CAN be little doubt 
that Mrs. Indira Gandhi went 
well beyond the requirements of 
the public interest when she 
wielded autocratic power under 
the emergency between 1975 
and 1977. In particular, there 
can be little doubt that she 
abused her powers to further 
the personal interests of her 
son San jay. She certainty acted 
as if she were above the law. 
and it is arguable that she may 
have acted illegally. But it is 
extremely doubtful If the lower 
house of the Indian Parliament 
has acted wisely in voting to 
condemn her to jail and to expel 
her from the house. 

In the first place. Mrs. 
Gandhi's imprisonment will only 
last a matter of days, since the 
courts have ruled that a parlia- 
mentary sentence of imprison- 
ment can only last while parlia- 
ment is in session, and the cur- 
rent session is due to end very 
soon. If Mr*. t. Gandhi did iDdeed 
commit acts which deserved 
parliamentary impeachment, 
then she should be liable to a 
retribution nf corresponding 
severity. For the Indian Parlia- 
ment to have gone through the 
inntiuns of passing a derisory 
sentence can only bring the 
Parliament iLself into disrepute. 

her. whether judicial or 

Mr. Desai has asserted that 
he is not conducting a political 
vendetta against Mrs. Gandhi. 
But if his Janata Party wishes 
to ensure that Mrs. Gandhi does 
not return to power, does not 
have an opportunity to declare 
a new state of emergency, and 
does not once more have the 
power to imprison her 
opponents, then it is almost cer- 
tainly going the wrong way 
about it. Mrs. Gandhi is being 
helped to a martyr's crown at 
virtually no cost to herself, and 
it may well belp in uniting the 
two wings of the Congress 
Party behind her. In the north 
of the country she will have a 
long way to go before she over- 
comes the bitterness at the 
forced sterilisation policies 
carried out by her son Sanjay, 
but in a week’s time her posi- 
tion is likely to be stronger than 
it is today, and her temptation 
to look for revenge will also be 


In the second place, Mrs. 
Gandhi's expulsion from Parlia- 
ment will be equally short-lived, 
since there is little doubt that 
. she will sland again for the 
seat which she won only two 
months ago. and every likeli- 
hood that she will win it again. 
Indeed, it is quite probable 
that her popular appeal with her 
own supporters and potential 
supporters will be strengthened 
by the incident. In this case, 
inn, the Parliament will have 
undermined its own reputation. 
; But whar may look on the 
; surface like a farce is in reality 
• another oscillation in the 
. dangerous see-saw of imprison- 
; merit and counter-imprisonment 
which has bedevilled Indian 
; politics for the past few 
. years. Mrs. ‘Gandhi declared 
the emergency in 1975 after 
being found guilty of electoral 
malpractices in Gujarat state 
elections. During the emer- 
gency she locked up a number 
of her political opponents, in- 
cluding the present Prime 
Minister. Mr. Morarjji Desai, 
with little or no justification. 
After her shock defeat in the 
1977 general elections she has 
now starred her political come- 
. back, with substantial gains in 
the south, and on any sane 
examination of the pattern of 
events since 1977 it seems 
obvious that her political 
opponents are looking for any 
weapon with which to damage 

Grey area 

It fs possible that the authori- 
ties in Delhi will now frame 
criminal charges against Mrs. 
Gandhi, and may even set up 
a special court to accelerate the 
process of hearing the ease. 
Such a move would almost 
certainly be unwise. Mrs. 
Gandhi may have acted out- 
rageously under the emergency, 
but the crux of the matter is 
that she should never have 
declared an- emergency. Once 
it had been declared, the way 
was inevitably open for her to 
act in abnormal ways, and the 
grey area between raison, dein/ 
and criminality must in almost 
all cases be exceptionally diffi- 
cult to define. In any case, a 
court of law is not the ri?ht 
forum for handling political 

The right way to deal with 
political offences in a demo- 
cracy is through democracy. It 
did Mrs. Gandhi credit that she 
submitted .hi a popular verdicl 
in 19i i ; the electorate swept 
her away. 

The Janata Party's pursuit of 
Mrs. Gandhi is symptomatic of 
jts weakness, its divisions and 
its ineffectiveness as the party 
of government The economic 
situation is relatively favour- 
able. yet Mr. Desai's cabinet 
shows no sign of being able to 
lead the country forward. Its 
obsession with the past is a 
dangerous omen for the future. 
India's two greatest assets are 
its democratic tradition and the 
independence of the judiciary 
Both may be threatened if the 
cycle of vindictiveness and 
revenge is not halted. 

A new voice 

on Europe 

IT IS a long time since a senior 
British politician has made such 
a pro-European speech as that 
delivered by Mr. Francis Pym, 
the shadow Foreign Secretary, 
in London yes fe r day. 

Mr. Pym. of course, is new to 
his job and is entitled to claim, 
as he did, that he was merely 
taking an old Tory theme from 
the shelf and bringing it up to 
dale. In that sense there was no 
really fresh departure. Yet the 
fact remains that for the past 
year or so the theme has been 
more or less discarded by the 
party leadership. The Tories, 
for example, could not even 
bring themselves to recommend 
full British membership of the 
European Monetary System and 
have increasingly tended to 
regard Europe as an electoral 
loser — a subject if not for out- 
right distaste, at least for 

embarrassment. Mr. Pym has 

now* put an end to the neglect 
and is a sufficiently senior figure 
to ensure that the subject will 
not again easily be pushed aside. 

stances — as in the case of 

The thbsd point is crucial. It 
is that it is no longer possible 
to accuse the Community of 
shirking the big issues. In the 
course of next year the Com- 
munity will launch the Euro- 
pean Monetary System, there 
will be direct elections to the 
European Parliament for the 
first time, and there will be 
further progress towards en- 
largement. Those are not the 
developments of a body that 
has lost its momentum. On the 
contrary. Europe may, almost in 
spite of itself, be about to 
acquire a new dynamic. The 
risks of being outside, or of 
participating less than fully, 
are those of isolation from main- 
stream events, and with no 
other natural partners. 



What he said was not particu- 
larly original, though none the 
less valid for that There were 
three main points. The first 
is that the case for continued 
British membership of the Euro- 
pean Community is even 
stronger today than it was at 
the time of the referendum in 
1975. As the British role in 
the world declines, the more 
essential it is to have some 
larger body throtigh which to 
operate. The Community today 
is involved in the world as a 
whole in a way that would have 
seemed almost inconceivable 
nnfy a few years ago. Outside 
the Community, Britain would 
be a very small power indeed. 
Inside, it at least has the power 
of influence. 

The second point is Ibat the 
way to get the best out of mem- 
bership is to behave as a full 
and convinced member. It is a 
question of building up British 
credit not only in the interests 
of the Community, but in order 
in gel the best possible deal 
when it turns out that Ihere 
arc special British circiim- 

■It is likely that die events 
of next year will compel the 
British people to take a closer 
interest It is difficult, after all. 
to imagine direct elections 
taking place without arousing 
some sort of curiosity', not only- 
in the campaign but also in the 
results and their effects. Yet 
one cannot say that tbe country 
as a whole is well prepared. 
For the Conservatives, Mr. Pym 
has at least performed a service 
in bringing tbe issue again to 
the fore. 

Jf Britain is weary of Europe 
-~of negotiations, renegotiations 
and referendums— it is because 
so few politicians nowadays are 
ready to give Europe any credit, 
while so many are ready to use 
it as a scapegoat. That goes for 
the Labour Parly especially, 
and for obvious reasons. Bur it 
had also become part of the 
Tory approach. The point made 
by Mr. Pym is simply this: since 
Britain is a member of the 
Community, why not take 
advantage of it? It Is a measure 
of the creeping British 
parochialism and defeatism that 
such a thought should have 
eome to be considered 
politically dangerous, - and that 
one should need to single out 
someone who dares to express 

Y ESTERDAY’S disclosure 
that International Com- 
puters may have trouble 
importing U.S. “ chips " for its 
{ computers if it cannot promise 
that none will ever end up 
working in certain aspects of 
Britain’s civil nuclear power 
programme is a pointer to just 
how wide the U.S. Government 
has cast its net. It will set many 
companies which have never 
thought of themselves as part of 
the nuclear industry reading the 
fine print of the new U.S. Non- 
Proliferation Act, in search of 
ways in which they, too. may fall 
foul of the U.S. Administration’s 
bewildering efforts to prevent 
the proliferation of nuclear 

Yet there are clear signs that 
from the present chaos of inter- 
national relations m nuclear 
energy some sharper thinking 
has begun to emerge about the 
strengths and weaknesses of 
present attempts to prevent 
proliferation. The Uranium 
Institute, for example, repres- 
enting a broad section of the 
nuclear Fuel industry — 
customers and processors as 
well as uranium producers — has 
this week published some 
thoughtful guidelines for 
governments genuinely wishing 
to prevent proliferation without 
hobbling a major new energy 

Again in Washington earlier 
this month five senior industrial 
scientists with long experience 
of both the technology and poli- 
tics of fissile materials appeared 
before the commissioners of the 
U.S. Nuclear Regulatory Com- 
mission — roughly equivalent to 
Britain's inspectors of nuclear 
safety— to give new evidence 
on the problem of nuclear 
proliferation. They appeared at 
the invitation of the com- 
missioners themselves, as a 
direct result of an event which 
took place in London late in 
September, when one of the 
commissioners spoke at a 
conference on nuclear fuel. 

On that occasion Mr. Victor 
Gilinsky. a scientist with views 
broadly antagonistic towards 
the development of nuclear 
energy, was highly critical oE 
the decisions of Britain and 
France to go ahead with the 
commercial reprocessing of 
spent nuclear fuel. They had 
embarrassed the U.S. Govern- 
ment, he said, by signing large 
contracts to reprocess overseas 
fuel. These contracts would 
involve separation of about 75 
tonnes of plutonium — “enough 
for about 10,000 nuclear 

By going ahead, he argued, 
Britain and France had left the 
U.S. with only three options. It 
could veto movement of the fuel 
and “pull the rug from under 
its close allies and friends." Or 
it could accept defeat in its 
efforts to control reprocessing 
and the widespread use of 
plutonium before adequate 
international safeguards had 
been agreed. Or it could extend 
permission for reprocessing in 
certain cases but place strict 

conditions on the : return of 
plutonium to the nation which 
owned it. 

Mr. Gilinsky’s attempts to 
defend tbe U.S. policy for 
preventing proliferation, which 
focuses almost exclusively on. 
the proscribing of civil 
plutonium, infuriated the five 
scientists. His staunch defence 
came at a time when serious 
cracks were appearing in the 
underlying logic of the U.S. 
position. 191656 were being 
aired above all in tbe meetings 
of the International Nuclear 
Fuel Cycle Evaluation (INFCE 
or “ infehee " as Americans 
prefer to pronounce it). INFCE 
is the multi-national investi- 
gation — 56 nations attended the 
recent review in Vienna — of 
the proliferation question, 
launched by President Carter at 
tbe London Summit in May, 
1977. It aim s to see whether in 
the rush to exploit a new 
energy source the problem of 
proliferation has been 
neglected. Is there a “prolifera- 
tion-proof" way of harnessing 
the atom, as President Carter 
had plainly been led to 



As a result of their protests 
at Commissioner Giiinsky’s un- 
repentant defence of U.S. policy, 
the commissioners invited Dr. 
Chauncey Starr, president of 
the Electric Power Research 
Institute, a Californian “think- 
tank" for the electricity supply 
industry, to present his views 
on the widely sought “technical 
fix" for proliferation- Dr. Starr 
has been embroiled with the 
question of proliferation since 
the end of the war, when as 
an expert on uranium enrich- 
ment he was asked by the U-S. 
Government to help assess the 
risk and propose controls. Last 
Friday he and his - colleagues 
told the commissioners bluntly 
that there was no way of using 
nuclear energy and guarantee- 
ing by technical means that 
there could be no possible 
diversion into weapons. He also 
argued that U.S. policy was 
deliberately ignoring aspects of 
nuclear energy equally risky, 
or even more so^ from a pro- 
liferation standpoint 
In an exercise which Dr. Karl 
Cohen of Exxon Nuclear, one 
of the world's leading authori- 
ties on uranium enrichment, 
irreverently called “spoon-feed- 
ing the commissioners," the 
scientists sought first to 
establish precisely what was 
meant by proliferation. Pro- 
liferation, said Dr. Starr, was 
simply “nuclear weapons 
acquisition by a non-nuclear 
state." Diversion was the use 
of fissile material intended for 
civil nuclear power, or other 
peaceful ends, for weapons. And 
latent proliferation was the 
acquisition by non-weapon 
states of skills and facilities 

easily turned into weapons at 
short notice. 

Expressed thus, says Dr. 
Starr, all nuclear fuel cycles 
possess some potential for 
diversion. There* is no way that 
technology can prevent a calcu- 
lated plan by a country to make 
nuclear weapons:. 

He also explains that 
practical knowledge of fissile 
materials and their refinement 
— reprocessing to separate 
plutonium, for example — comes 
not from operating plants but 
from developing the technology 
oneself. Put another way, the 
risk lies not so much in selling 
a non-weapon state - a complete 
reprocessing plant but in en- 
couraging such states to develop 
their own from scratch, by for- 
bidding such sales. In that way 
they learn a great deal more 
about a very tricky material. 
On the other hand, plant 
operating skills are quite in- 
appropriate to tbe design and 
development of nuclear 

But technology, as Dr. Starr 
sees it, can play an important 
role in helping to control pro- 
liferation. For example, tech- 
nical barriers can be erected 
to minimise the danger of a 
sudden national decision to 
develop a weapon, or of diver- 
sion by terrorists. It can aid 
international inspection and 
acco unting of fissile materials. 
It can increase the warning time 
available* for other nations if 
inspection ever discloses an 
.intent to make weapons. It can 
be used to make the materials 
very readily detectable if 
stolen — a “hot" fuel assembly 
spiked with gamma-emitting 
radio-isotopes can be detected 
at distances of up to five miles 
simply by flying a modern 
sensor overhead. 

AH these uses of technology 
will substantially reduce the 
probability of anyone misusing 
the nuclear fuel cycle as a 
source of nuclear explosive, he 
believes. But they will not offer 
the ultimate “ technological fix ” 
for proliferation — the magic 
fuel cycle, as Britain’s experts 
have called it — which Mr. 
Carter’s advisers assured him 
could be found. Technology, 
says Dr. Starr, is something 
which has to be blended 
adroitly with diplomatic and 
institutional measures in order 
to safeguard nuclear technology 
against misuse. 

Dr. Karl Cohen, a key figure 
in the original electromagnetic 
enrichment process which pro- 
duced the explosive for the 
Hiroshima A-bomb, has pro- 
duced the evidence that in 
focusing exclusively upon 
plutonium the U.S. is overlook- 
ing — perhaps quite deliberately 
— the proliferation . risks of 
enrichment The U.S. repro- 
cessing plants for spent nuclear 
fuel are privately owned. The 
enrichment plants are owned by 
the Government and produce 
materials both for fuel and for 
nuclear weapons. The U.S. Gov- 
ernment has shown no readiness 

Carter — his non-proliferation, 
policy has come under a highly 
critical international examination. 

to place under international 

diffusion plants, its pilot centri- 
fuge plant at Oak Ridge, or the , 
new gas centrifuge plant it is. 
building at Portsmouth. 

Yet according to Dr. Cohen, 
the gas centrifuge is a high 
proliferation risk-. A centri- 
fuge . plant can be readily 
adapted to produce highly 

■ The significance of lfes . lug 1 esdusively on plutonium 
in* the ideas' promtflgated by -and, the ; commercial n actor 
Mr Garter’s advisers . that activities, theik/licy neglects the 
a proliferation-proof fuel cycle . farmore widespread dangers of 
can be found by using, thorium obtaining enough fissile 
as part of the fueL The fallacy naterial from research and de* 
was exposed lo the coxmnis- yelopmeat -activities: "already, 
sioners by Dr. Joseph Dietrich, available in most if not all the 
chief scientist of Combustion 5$ participating* nations: -of 
Engineering, who concluded jNf*cE. r ; - / y r - :/ : • : 

' that no such fuel cycle would .The chances-, sedni gOod-Ahat 
ever be proof against proUfera. ^ ^ j&f Vt INFCE will 
tioh. At best such a to devrkop new diplo-. 

assist institutional barne matte and institutional: image* . 

K». meats for reducing. &e.risksof\ .; 

Pl Tbe Se stiai J ht^ thorium ' cycle proliferation' aspects,- 
JL a mSt* of uranium mi 

Jhm-ium reducing uranium re- logical fix " talang a : suppor&ig>i 
Mirements by about 1$ per instead of .tfae--.domiaant - j 

cent for light water reactors. As Dr.; ; * Stare? Jthct hiiti I 

The fuel contains two fissile leagues sea:Jt£ ^e^iscasdbfe* £ 
materials, uranium-235 and must refocus on 
thorium-233, at high, levels of which the International AteutiSri. “ 
enrichment The spent fuel is Energy Agency,/ needs: 
contamioated with * ■ gamma- .strengthen its 
-emitting isotope, which is cer- Promulgating . r safeguards : 

tainly a handicap m recycung . T and acwuntehaiay rtileifiMi > -3 

fissile material?,' • 

. thing it. has/hisit.^et 3 

• -Strengthening-"' ifcfejf. i 1 ! 

• jEstahtishhig; entefaj:. 101-',* 

SSbif ■ M th L f, Sptoti™ es ^ 

X Bllli 1 V a iuu.»‘v-r . — . - — — 

unused fuel back through the 
reactor, but not for anyone 

inspection _ either its. esistiog ' refiruog it » "take 

If the mixture. . 

uranium and. thorium materials 
is denatured by adding- natural 

as Dr Cohen has shown,- “the 
mixture can be separated fairly 
easily bv a few cenmfu^s to. 
yield pure uranium-238- And. 
a bomb can be made from- as 

enriched material for weapons* ^ le as 4 kilograms ©f tiranium- 

reseaxch facilities. : ; ?f ; -" - 

Establishing: "jTeal^iae. 'A$£ r -'- \ 
tematfonal- -; <» 

for fissile ; '^terisdS%if.- : t 
effect/* iri w& Yoony^^a&y^ V 
all - .sudii movlanentEf/^axe' v| 
displayed 'and;- 
simultaneously.'; i 

either by changes to the way 233 (see table): What is more, 
machines are coupled or by like almost every dtber reactor, 
simply recycling - uranium ' one using the denatured thorium 
through the plant Moreover, cycle will produce plutonium-— 
the centrifuge, already at' an-- in copious quantities — in. its 
advanced stage of development spent fuel. V. 

in at least seven- or eight' ' These scientists were provia- 
cou aeries, is a less difficult tech-: .ing in a single strong dose the 
nolagy to harness than electro- message which has been drawn 
magnetic or laser enrichment, together in the form of dyer 150 

Dr. Cohen sums up the risks, working papers by the working 

from enrichment as follows.. A. parties of INFCE : over the past gaining strength '-.rapidly that 1 
free-standing process purely for J year. Some 58 nations partict the point at -which - .tov start' J 
small-scale development of pated in the halt-way review \ creating new ^institutions" is : -ttie.- j 
weapons— say. by centrifuge— meeting in Vienna lat the end of ■ international "Storage ; of . picp-" j 
would be very hard to detect ' ’. . tonliim: there !a a definite need: i 

Diversion from a civil enrich- — . - the problein 4s ^elf-contained: l 

merit plant with the addition ; , ; it is hot : commercial; and :it 1 

of a “topping" facility for MATERIAL REQUlntD involves-, no . “sensitive tech*. • 

/ ./should it ; ever" occur: A; f 
' false . accusation, timt" - i 
nation;_is breaking the' g. 
rules could haye immensd; 3. 
. ' ’ ' diplomatic repercussions * 
- Internationally^ the/. Idea is'? 

highly enriched material would jq MAKE ONE ArBOMB . nalogy." The more pragmatic 

be even harder to find. A nation. • m ™’ ”• J" ■ :U^J' o^^s . deii’ng: with 

bent on producing nuclear J*»ire uranium-233 ~ kfl proliferation^-- -hav^ : begun to 

weapons would fmd enrichment Pure plutonium-239 . 4.5*8 join- sbeh oounfries/ as Britain, 

four times easier if it started ^Co-processed (uranium- - France and ^Holland in this 

with fuel enriched to the level /A plutonium fuel mixture) 50 >8-; view/- Eiey -ils$ Accept that, 
—about 3 per cent— used in fast reactor fuel assembly '• . because - , .of - proifiems • of 

light water reactors than if it "light water reactor .fuel L '/••./.- internatidhatising even ; this 
started from natural, uranium. assembly . -\ .....X small corner of ^tfee nuckar- 

ithe material allegedly hijacked*. . Wcc; Bwofc 

from the EEC by Israel). But. . ■ r? > * < -■ V - v .fhat -a cf»hg me :piight b<» 

a nation starting with the less v " well- 7 adv*ic^ v h^‘v'^l»^time 

highly publicised fissile material hist month, 'ae^gatimriiig ^ ^ 

uranium-233 would find it 50 dominated by the fiiplomatfc jggg. ' perhaps reason 

sier than if it started activity of the American i«»T- 

times easier 

ui tite first/meethig.tbMifictes set- 

with natural uranium. gates . m_ arranging ^intSdational 

V.W'T'.TTT* tiB» .nn 

According to Dr. Cohen, if meetings W try to ^ 

one estimates that Jit would need what, - if any,, of-v -its _ non- - — m. ■■ ; ~ 

me estimates that at would need wnat, u any,. 01 '/vmbB&cJatfehaed'hg 

1,133 gas centrifuges of a- given proliferation pokey 

sire to produce enough fissile vive the - . highly \ critical — • ---- - - • ~ «-*•-- 

sire to produce enough fissile yive tne ^ plfonfiig has sterted^iid fly the 

material for one weapon start- international ex aminat i o n rtheu::. etiriy Jl930s, Britain- fiia^ well 
ing with natural uranium, and President had hims.elf initiated- a 

97* — produce Already,^ ^ as some of tfe pro-. ^ ^ paiieariStiiities, 

inaviff 4 tt TA/ncViin crfnn miMiiITv •' ~ * - Z — ■ 

275 centrifuges to 
enough fissile material starting 
with uranium enriched to the 
ievei of light water reactor fuel, 
it then would need fewer than 

and diplomatic expediency, * (?oz>err»^cni r .ir^lueifce on 
20 centrifuges to produce starting^with the U^S. Govet^- intenictto^^n 
enough uranium-233 from spent meat's agreement last year tb to';20/: 

fuel, from tbe “denatured” let Japan ^ reprotess" spent,Zt-alund - Hbu^ivjHafiigarkcL 

nuclear fuel Moreover, *7 focus-' f^ndon, '.j.:'/-'' 

thorium fuel cycle. 


Insurance for 

a brewer’s dray 

Those chilling television fiJms 
about tbe fate of people who 
drink and drive come from a 
£Jm budget which the Depart- 
ment of Transport is spending 
on public safety announce- 
ments over the holiday perind. 
It is money well spent, accord- 
ing to the Royal Society for the 
Prevention of Accidents, even 
if it is openly critical of the 
DoT for not giving more 
priority to tightening up 
legislation on drunken driving. 

The Society's figures are 
disturbing. Last year the 6,700 
deaths and 300,000 injuries in 
traffic accidents cost the 
country an estimated £1.2bn 
according to Michael Reed, the 
Society’s director of road 

“ In 30 per cent of accidents 
drink is involved." he tells me. 
though he adds that existing 
legislation “ allows one to drive 
a brewer's dray through the 

Reed is particularly critical 
of the delay in implementing 
the recommendations of the 
Blenoer Hasset report of April 
1976. This would bring cases far 
more quickly before the courts 
and would simplify the process 
of hearings. It has been 
accepted by the Secretary of 
Transport, according to the 
DoT. "It is up for the Cabinet 
to decide when it should be 
given pariiunemarv time. With 
the problems fifing the 
country and a possible general 
election it might be (he least 
of the government’s worries,” 
the DoT says blandly. 

Just as controversial to the 
Society’ is the growing issuing 
of Dolicies to insure those con- 
victed of drunken ■ driving 
against the costs involved in 
laying on alternative transport 
and, say. a chauffeur. 

Such policies are issued by at 
least two companies, apparently 
registered in the Isle of Man. 
Reed says he is " very unhappy " 
at such policies being allowed: 
“ They mitigate the full weight 
of the penalties laid down by 
law. It is a serious matter to 
kill or maim and people should 

title of a conference just held 
in the Vice-Regal style con- 
ference hall in New Delhi. A 
colleague reports listening 
enthralled to a discourse by a 
South Korean general of indus- 
try on the plethora of profits 
and dearth of labour trouble in 
his country: “ Strikes are for- 
bidden under our constitution,” 
he said before continuing on the 
country’s economic miracle. 

Coining after this glowing 
homily in favour of free enter- 
prise Paul Appell. president of 
the French Management Asso- 
ciation, seemed almost lost for 
words. However, when asked to 
define an “ entrepreneur,” 
Appell at last found his stride, 
saving with dry Gallic relish: 
“ He is a pig.” ' 

that to qualify for a reduction 
travellers only need to spend — 
at their own risk of course— one 
Saturday night in the land of 
Guinness and whiskey. 

After, some battle and an 
appeal to higher authority my 
colleague finally won the day. 
to be told by BA: “ I guess you 
could put this down to human 

Ready rule 

“ If that wreath Isn’t for 
Christmas the dollar’s worse 
than we thought! ” 

Hope and glory 

pay the full consequences.” 
Lawyers too argue that, though 
not inciting, aiding or abetting 
a crime, such policies do appear 
to run “contrary to public 
policy ” and thus might be void. 

But they tell me it is a “ grey 
area” — which seems to be the 
attitude of Lloyd's too. It told 
me that it did know of several 
policies being collected on. 
When I asked whether it was 
not a policy to reduce the risks 
of breaking the law it com- 
mented “To date whenever a 
matter of such insurance comes 
before the Committee of Lloyd’s 
it has always been turned 

Britain, it seems, is none-too- 
popuLar in Community circles — 
or so one might gather from a 
Euro-joke now circulating in 

Question: How would you 
recognise the plane bringing 
the British delegation? 

Answer: When you turn the 
engine' off it 'still continues to 


In the midst of such criticism 
and the fear that such policies 
might encourage people to run 
risks it was a surprise to find 
members of the DoT apparently 
welcoming them. As one told 
me: ** Personalty- such cover 
seems rather a good idea. It 
takes away the temptation of 
driving while disqualified." 

East meets West 

Management perspectives for 
economic growl h and human 
welfare was the awe-inspiring 

Now that cut-price transatlantic 
flying has caught on, it's easy 
to forget that domestic air fares 
still keep going up. 

So I'm giad to report that as 
Christmas approaches, British 
Airways is doing its bit to 
srretch the pound (or punt?) in 
pockets of Irishmen winging 
their way home this weekend. 
Not without a degree of reluct- 
ance. however, according to 
a Belfast-bound colleague who 
bought his ticket yesterday. 

Eager to take advantage of 
the airline's “ cheap ”£47 excur- 
sion fare from Heathrow, he 
strode into British Airways’ 
Cheapsidc offices in the City, 
only to be told that he would 
have to pay the full fare unless 
he stayed for at least six days. - 

■All this runs contrary to BA’s 
dispensation since November 1 

Norway’s authorities have just 
had a sharp -lesson in the perils 
of trying to legislate for a 
perfect world. Two months ago 
they ushered in a cleaner world 
by making it illegal for car. bus 
or lorry drivers to let their 
motors idle while parked. Now 
they have had to go sharply into 
reverse gear. The ruling was 
badly received by the country’s 
taxi drivers. Norwegian winter 
temperatures being what they 
are. the drivers said they bad 
to keep their motors idling to 
stay warm. They threatened to 
strike over the holidays if the 
ban were not lifted. 

Happily for the Christmas 
traffic, an official came up with 
a judgement worthy if not of 
Solomon at least of Whitehall. 
He pointed out that the new 
rule — designed to protect the 
environment from exhaust 
fumes — conflicted with an exist- 
ing law to protect the “ working 
environment." This stipulates 
that employees must not be 
forced to work in unnecessary 
discomfort. So now the taxi 
men can again idle on while 
the authorities revise their 
resolutions for the new year. 

Slight detail 

Upset at the way that many 
of their fellow-citizens have 
been crossing the border to 
shop cheaply in France, Geneva 
residents Have begun proudly 
displaying stickers saying: “ I 
live in Geneva — I buy in 
Geneva." There is only on e 
problem. The ■ stickers were 
printed in France. 


KBS. 7 T 9 

•Before gains tax and oqKhses. figures asattfecapfier 6^1978. 

At the beginning at every yatrthe IQ News Latter selects a- : 
number of shares (generally six) for capital gain aver the fa Bo wing 
twelvemonths— .its Star ffep Selections. > 

_ The chart above shows the «Jmutet!Ye l2-nibnth performanre/ot 
each year's Nap Selections over the last 22 years, inefudrngtfjattrf! :• 
the I9?S selections. It you had invested £1,000 in the 1957Nap i 
Selections end reinvested the prodeeds-at-the end of each year iff the 
new annual selections, your initial £1,000 wouW n6*fie Vforth 
£224,415tbeftye gains tax and expenses) against a mw;e £2£25 if ’ 
you had invested in the FT index and'£4,38Ijf you had-raanaged to 
keep pace with inflation. • r.. ' , 

Iii addition to its traditional Nap Selections, tbeJC Naws tetter;. - ' 
gives regular weekly recommendations, -The/b^ 
its recommendations have beaten the' index by a wide percentage 
margmaverqging injp.dwbte figures onananm^l.t«^.'The News' 
Lettw afco ftas.ap impressive track record wfth rfts - general marketand 
selling advice over the years, as supported hy the many- ap p rec ia tive 
letters received from subscribers, andft has eXtended tiiis te ote 
important investment areas. ■: v > . . VZ-7 v : v f 

The TO News Letter, pubfehed evei? Wednesday, fe ^ymbbls cte ' 
postal subscription only. Use the coupon below. toorderyour :: : : 1 - 
subscription jkjw, starting with Jhe 1979 Nap Selections/ ' ' 

■- ; ■' • ' • r ^ : :;-T - r-,; v.-''. feTjS. 

•* a wywcrijglfo-^ 

rzr £351X3 for one rear ttfoiX^lrowa oiasita ^ 

- • >. V " ,vJ;‘ - 


O PlNMbwtra tor £3500 



--T* PnatfnvU.-. .-v-' ' -f .. 

u ei T /m c mmriiiiM n n'n« ,JV " ' ' l ' m ’ ■ ; 

Japan is in the process of adjusting its economy to a slower rate 

? : of growth. For the financial sector this readjustment is posing considerable 

. ... Ov 

Hr j 


— - not least in the sluggish domestic demand for funds. Increasingly the Japanese 
banks are looking abroad for areas of development potential 

MfflSxrinSMl wBl mait some- 
[■tiring o£a watershed for Japan- 
[ eso banking. It may also prove a 
' turning . point for the foreign 
banking community In Tokyo 
which is having to -rethink: its 
role in Japah.-* 

’ The antiquated 50-year-old 
j. banking law will be rewritten 
; by the . Ministry of Finance 
; (MOP) after . a quasi-private 

1 research en mrnit tgff on financial 
' systems completes its extensive 
studies.. - Debate , on possible 
liberalising steps to be taken 
in regard to tiie present very 
rigid -interest rate . structure 
appears ready to ifceye Into tbe.- 
consensus stage, after .having 
started m earnest nearly four 
years ago, .and' the authorities 
wBi .present to the Diet (Parfia- 
: ment)-prbposed legislation: On a 
1 major -change. to the. > rules 
governing -..foreign / exchange 
! activity (though the - change 
will be more in philosophy than 
practice)'. ' 

AU in- all, it wffl. be a year 
of reconsideration . for. the 
financial sectorin' Japan. -which 
has . been alow to adjust to the 
tremendous . shifts in economic - 
reality since the . oil-producing 
States; by - quadrupling their 
prices in 1073, sent shock waves 
through the . world - economy. 

. The Japanese .economy; to 
put ft simply, is hot w hat it 
used to be. ' During the 1960s 
Gross National Product (GNP) 
expanded by a zeal annual' 
average of pier cent; .slow- 
ing .down "to ■ the first three 
years of this decade to’ 5^8 -per 
cent: .In the earlier period a 
steady 'rise -in imports kept 
Japan's .current - account to. a 
rough bafrnod; with the surplus 

running at an annual average 
of Jess than SSGGra. '7- ■ 7 
From 1870 .to * 1973, the 
slowing of -Japan’s domestic 
economic growth, while world 
. growth in imports accelerated 
from 7.7 per cent to about 9.0 
per- cent per annum, caused 
Japanese exports- to ; grow by 
leaps and bounds. The current 
account, as a result,’s&owed an 
•average surplus biv $4.1bn 
during the first three years of 
the decade. 7 

The oil. crisis/ -brought 
Japanese growth down . •.’to an 
average of 0.6 pgr ' 'cent in 
1974-75. At the same time a 
deterioration in the^tenns of 
trade caused by higher oil 
prices- produced a huge $4.7bn 
deficit in the cuneto7&cc°unt 
for the calendar year 3074. But 
the- deflationary tretoL slowed 
Japanese imports and brought 
the current account’ Into near 
balance by the following lyear. 

. .Japan became one of. the first 
nations to solve; tbe^twto prob- 
lems of payments ’deficits and 
“ Kyoran" ' (crazy) - inflation 
after 1973. The f aet.’th at 
Japanese business intbeperiod 
just before the upheaval had 
maintained a policy ‘of- : 'rapid 
investment in new plant and 
equipment meant that exports 
could soar while . a large gap 
between savings and investment 
and supply and demand -went 
unadjusted. The result; was a 
ballooning trade -and. current 
account surplus which continues 
until " now ' and wlflcb;^- has 
prompted a revaluation" bfrthe 
yen by nearly 100 "pCr' cent 
'since 1971. - ' ’ ,p: DVT 

*. The Japanese government 
faces a particularly difficult 
challenge in balancing ifie need 

to stimulate economic growth 
(which may be the only way of 
achieving an increase in imports 
and thus bringing the current 
account Into some kind of stable 
equilibrium) against the danger 
of disrupting the domestic 
money market. This could 
result from the increasingly 
large floats of deficit-covering 
national bonds needed to fund 
stimulative budgets. 

financing, and initial speculation 
is that fiscal 1979 will see only 
6 per cent growth. 

The Tax Agency is working 
on a plan to introduce a value 
added tax (VAT) system on the 
European pattern. The hoped- 
for starting date of VAT is 
January 1980 which could help 
defray the fiscal 1979 last 
quarter budget cost. It is by 
□o means certain, however, that 

autumn that clannish and over- 
zealous advance into inter- 
national financing should be 
avoided. Private bankers them- 
selves fed that profit margins on 
loans have been cut to the bone 
and that a cautious approach 
from now on could lead to the 
recovery of margins. 

Next year banks may have to 
reconsider seriously the quality 
of the borrowers of their yen 

Japan has shrunk, along with 
the margins of profit they can 
make. Over the past year only 
the favourable circumstances in 
the foreign exchange market — 
which made swapping dollars 
into yen exceptionally profit- 
able — appeared to make the 
bankers happy. Their spokes- 
men have dutifully pleaded with 
the authorities that they should 
be allowed greater access to 

Need for reappraisal 

By Richard Hanson 

The • Government’s official 
target of 7 per cent real GNP 
growth for the fiscal year to 
next March has been effectively 
discarded. The economy in the 
last two quarters of the year 
would have to reach impossible 
annual growth rates of around 
14 per cent to achieve this 
— after 4J per cent increases in 
the first two, quarters. The 5 to 
6 per cent growth rate which 
is now expected for this year 
will be achieved at the cost of 
37 per cent (Yll.OOObn) budget 
coverage by bonds (the highest 
ratio among advanced coun- 
tries). There are hints that 
next year’s budget will need 
more than 40 per cent bond 

the Diet will approve such a 
plan. In any case some form 
of income tax relief would prob- 
ably be needed to soften the 
blow to the average voter. 

The Finance Ministry mean- 
while has . been encouraging 
Japanese bankers and financial 
institutions to recycle large 
amounts of surplus funds to 
foreign borrowers so as to bring 
down the balance of payments 
surplus. Japanese banks have 
moved into the forefront of 
international lending over the 
past year, stirring criticism 
from abroad of “aggressive” 
lending practices. 

The monetary authorities 
finally let it be known this 

and dollars. Country risk 
worries are beg innin g to 
emerge. Officials are also 
forever recalling the inter- 
national credit crunch which 
nearly brought disaster to 
Japanese banks after the West 
German Hers tart Bank failure 
in 1974. 

Still, there is no doubt that 
Japanese banks are going to 
have to depend on their over- 
seas business more and more in 
the future. The strength of 
domestic loan demand will con- 
tinue to weaken for the 
foreseeable future. 

Foreign bankers too have 
found that the volume of their 
traditional lending business in 

yen funds in Japan and that 
interest rates should be 
liberalised. Some of tbe 
foreign banks are also trying 
to diversify into potentially 
lucrative areas like consumer 

Tbe Finance Ministry— along 
with the National Police 
Agency. Justice Ministry, Home 
Ministry. Economic Planning 
Agency and Prime Minister's 
Office — is working on legisla- 
tion for this presently free-for- 
all sector. The Government is 
embarrassed by unpleasant inci- 
dents such as suicides by hap- 
less individuals involved in the 
seedy areas of loan sharking 
where legal limits on loan 

interest rates run over 100 per 
cent per year. Commercial 
banks are unwilling to expand 
into consumer lending which 
represents a mere 0.6 per cent 
of all loans outstanding. 

One of the key requests by 
tbe foreigners bos been for 
permission to issue negotiable 
yen Certificates of Deposits 
(CDs) in order to raise funds. 
Tbe debate on CDs has been 
very heated among the various 
competing segments of the 
domestic banking industry, and 
represents a subject of intra- 
governmental disagreement 
over interest rate liberalisation 
as welL 

Japanese interest Tates on 
deposits are set by the 
authorities, or are carefully 
guided by the Government (a 
situation which also applies in 
the short-term call money and 
bill discount markets). This 
system has been jealously 
guarded by the Finance 
Ministry as its principal means 
of controlling the banking and 
finance community. 

The Bank of Japan, -on the 
other hand, has seen its ability 
to monitor and control the 
growth of the basic money 
supply erode sharply in this 
era of slow economic growth. 
The central bank previously 
could exert control on lending 
by tbe major commercial banks 
through quarterly “window 
guidance” limits. As the com- 
mercial banks’ importance in 
this area diminished so did the 
effectiveness of their control. 

Recently money supply has 
been expanding at about 12 per 
cent per month on an average 
annual basis, but the growth 

rate could accelerate with in- 
flationary consequences. (Con- 
sumer prices are now rising at . 
a comfortable 4 per cent per . 
year.) The Bank of Japan 
favours some form of interest 
rate mechanism as a means of 
controlling the money supply. 
This would require liberalisa- 
tion of Finance Ministry- 
controlled interest rates, some- 
thing MOF officials definitely 
do not want. 

The argument between 
advocates of partial liberalisa- 
tion and desirable (but un- 
likely) complete de-control 
looks set to continue for many 
months ahead, affecting the 
pace at which even moderate 
interim steps such as the issue 
of CDs by banks can be imple- 

Worries about Japan's cur- | 
rent account and trade surpluses 
which dominated discussions in 1 
tbe past two years appear to be 
receding as attention shifts to • 
the more fundamental question 
of what kind of domestic and 
international monetary system i 
Japan will need in the 19S0s. 
The appreciation of the yen has ' 
produced a drag on exports and, 
unfortunately, on the growth of 
the economy as a whole, which 
keeps imports from recovering. 

If President Carter’s dollar 
defence measures succeed in 
stabilising exchange markets 
around the world, the new 
Government of Mr. Masayoshi 
Ohira, who took over from 
defeated Prime Minister Takeo 
Fukuda in early December, may 
have some room for manoeuvre 
in tackling the problems Japan’s 
financial community faces at 

Deutsche Bank, a century of universal banking. 

Tuning customers’ require- 
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Our scale of services reach- 
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The art of fine-tuning 
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Financial Times Wednes^y 

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on home front 

THE Japanese banking industry 
is being termed, quite seriously 
by some, as the 13th domestic 
industry suffering from funda- 
mental - ‘ structural problems 
threatening its viability/ The 
first 12, including shipbuilding, 
al umi nium smelting, some fer- 
tiliser makers and others, have 
already been officially desig- 
nated as such by the Govern- 
ment .and qualify for official 
assistance. In fact; the Govern- 
ment, in cooperation with the 
private sector, has embarked on 
a major review of the banking 
system which -aims if not at 
basic restructuring then at the 
minimum some sort of plan to 
ward off banking chaos in the, 

The problem Is quite simple. 
Japan is over-banked after three 
decades of high-speed economic 
expansion, and the outlook now 
is for a long period of slow 
growth in the domestic economy 
and subsequent poor demand 
for loans while funds co nt i n ue 
to pile up. The result has been 
a squeeze on the ability of banks 
to make a profit on normal 
lending business. In the last 
reporting period ending Sep- 
tember 30 only two of the major 
city bdnks — which ’ together 
represent the core - of the in- 
dustry — showed a positive ratio 
of lending' interest to the cost 
of m aintainin g deposits. Over- 
all the city banks have been 
r unning at increasingly large 
min us ratios for the past three 
half-year periods. 


The major city banks in the 
September half-year gave a 
fairly lacklustre performance in 
terms of net profit The banks’ 
profitability is now rivalled by 
that of the four large securities 
houses. Dai-ichi Kangyo, the 
largest bank in terms of depo- 
sits. had flat net profit and an 
0.8 per cent drop in pre-tax 
operating profit: Fuji Bank, the 
second largest, showed no 
growth in net from the prior 
half, with the operating profit 
up only 2.6 per cent: Sumitomo, 
which had a slim 0.008 per cent 
positive income-cost margin, 
had a net gain of 1 per cent 
and . an operating drop . of 0.6 
per cent 

The aggregate operating profit 
of the 13 city banks reached a 
record high but this was doe 
entirely to gains, from the sales 
of securities (at prices greater 
than pari in order, to .make, 
room in portfolios for the large 

amounts of national bonds_tbe - 
banks were required to absorb .' 
under the Government’s stimd- : 
lative national budget pro- 
gramme,- or through "profits bn 
foreign exchanges. The Bank-of • 
Tokyo, the foreign exchange - 
specialist, had a 5-8 jfer- cent ; 
drop in net profit as a result;" 
of having to repatriate dollar _ 
funds from its vast overseas 
network with the yen appre- -- 
ciating sharply during the half : 

The Government imposed - 
need' to buy national -bonds 
has actually become ■ something, 
of a welcome chore ’compared' 
to earlier periods when, funds’ 
overall were Tight. But the; - 
increased dependence on- th& 
public- sector (the Government 
will sell a record Yll.OOObn in" 
bonds this fiscal year to fond;/' 
37‘per cent of the budget) has. 
meant e change in banking In- 
dustry assets. ' Sumitomo Bank; 
for example, finds thqt the - 
ratio of securities to deposits 
in tire latest half year readied 
a post-war record 18.7 per c&rt 

The national bond* floats also 
require a new reserve of. 2 per 
cent of the total boqghtaS a 
hedge against potential losses; 
from bond price fluctuations. 
For Sumitomo this meant :/a- 
• reserve of Y3.36bn deducted 1 : 
from pre-tax income. Sumitomo 
in turn profited by Y5&fl>n 
from sales of already . .held * 
bonds. - - 

Overall, a breakdown of 
supply -■ and demand ' for ' fundi: 
in the Japanese money market/ 
reveals that the demand for 
funds from the corporate'- 
sector has declined' from con- . 
sti rating the majority izi - -the -' 
pre-1973 period to barely 'half.;; 
from 1974-77. The public, 
sector demand for funds \haS ,. 
increased to about 40 per cent 
and individual demand stayed - 
flat • 

Housing and consumer loans : 
in Jan an by major commercial;; 
banks as of June, '197 8,.' 
accounted for only 9.5 per cent- 
— 0.6 per cent for consumers^;;, 
of the total, compared with 20.1; 
per cent in the UK, 13.5 per- 
cent in West Germany and 33.3 - 
per cent ‘in the U.S. The- 
euthorities are encouraging: 
banks to develop the consumer 
lending area, but the banks are, 
very wary Of any lending that-* 
may have a built-in loss factor. 

The Japanese banking indus- 
try is made up of the 13 city 
banks, 63 local hanks, three 
long-term credit banks and 
seven trust banks. ■ Under 

different legal status but per- 
forming increasingly similar- 
roles in tbe banking community - 
are mutual loans and savings . 
banks, credit associations, 7 
credit co-operatives; life assur- 
ance and non-life insurance .’ 
companies, the- -central ;_co-. - 
operative bank for agriculture 
and forestry and other agricul- 
tural co-operatives. As of. 
March 31 these held about 36.6 * 
per cent of deposits outstanding 
and 33.4 per cent of loans out-. " 

to better control the growth .of 
money supply — which iji-recent- 
; months has shown’ at tendency; 
td f; ho>.^orwi?^F bhSL^TThe^ 

- central' bank^iias traditionally^ 

reliedon its-Svindow guidsaiie’S 

limits ~oh lending to the . private 
sector through - quarterly :<ftrotaa& : 
on rity banjc loanst; '"&■ 

This very - ’ dir^t mews of co»5 , 
trolling money «ip)Jly.;fittiwthl - 
lost its importance, oyet'1iie - SaS6£ 

* coupIeofy^ls.’;<^tx^‘Baitk! , 1 

- officials laxnent &^Qieir 0easj 
of how mnch^'should.' be vleifjg 


A joint private and Gqyern- 
'.ment sector committee. for : . 
finan cial systems research has 
..been given a mandate toreeom- 
ihend ’ ways of making’ the 
system more efficient. Bventu-v 
- — as some officials’ have 7 
long-advocated — there may-' be a - - 
flurry of mergers . among' the. 
smaller local banks, much like. 
-jQie mergers of- the last- decade 
which created . : the - . Dai-Ichi 
Kangyo and Taiyo.Kobe banks 
among the city, banks. 'This ; 
.will take considerable time. One; 
recent attempt -by • Sumitomo 
Bank to merge with-; Kahsai. 
.Sogo Bank failed, because o£ 
opposition ..from. Ransai . j em- 
ployees. ' 

There remains strong differ- . 
euces of opinion between, berth, 
‘the Finance Ministiy and Bank ‘ 
of Japan (which officially is 
only tpe agent' of the Finance. 
Ministry) and among the private 
hanks over what in the present, 
system should change. ;.-JThe;_ 
Finance Ministry next year- will 
,be drafting a new banMng law 
. for presentation., to the national .. 
-legislature. The curoejrt50-ybai- 
.old regulation is -. relatively, 
simple in its stxucture^tandhas 
allowed tbe Minister of Finance - 
almost unbridled discretion in 
controlling the entire financial • 
astern. • ■ ; -. i ! ; :• .. V •' ■ 

Any new law wouldr probably 
attempt to define the limits of! 
Finance Ministry authority/ 

. which is why attempts to. change - 
the law could take another' two: 
years or so to be realised. The' 
Finance Ministry is reluctant ; 
to give up its essential- power, 
based on absolute control . oyer . 

city, banks-, now l -:-fro~whidE.' iB| 


loan demand falls: :- . 

. Most . Press;; - -Sieritiqair- InS 
focussed on^^debatei'crferpeM 
. mission- 1 for banks 
- negotiable yen' TIDs^ - Eosjdig^j 
bankers ^yocate ^i stiTHigfej 
■ The • EihahceV 

-the interestxat e struotin-e.^ (Gne ^ 
banker has cbararim:ised Japatfl 0 
monetary system as one-exactly 
aimropriate for an impoverished 
developing country.). 

The- Bank oR Japan, fin ’the _ 
other hand, wapts to win s 
. flexible interest r^e mechanism ; 
through which ■ it Viil be aple - 

year, 1 but^ey.wilf he modified.? . 

. with lower limits -on the6tsb»i‘ -• 
andv upper- Omits; %VJBt»e^; 

■ xates.^o - ai hot'To“ifisi?jpt; Otbcg: 
sectors of L the; 

jannityi.- . Sectors ;wldch' stea^. - . 

- to. be affected by CDs-inriufle ti^ - .; 

- long-term credit . baja^I 

■ can issue long-term debeatureS - 

-and the botid reptn-chaselBssTa^. : 
meat market whieb sefyi&^th^ 
securities industry- ; Thectroat 
banks. -': and * long-tetia." ^crediff;' - - 
baiiks . 

- banks on the . i^n6v .ainirnot : afl! \ . 
city:;bai9cs fe^ th e- -TbeecL' 
half-baked CBs- : The'ld^lban^:-; - 
-are worried that- the; be- 
holding i\ fooai;;~v go&rntisiia*.. 

:deposits' yrill, rise and.:.canag 
. eeHous.j>rpbb^-in : -<rompietiafe -- 
with aggress ive city-kanks vdiichj 
can •ofCer better .' 

. J-v ;FiUai^e-:; - 
approach far a." siep hy step^ 
liberalisation of’ mterest 
Stei>i^tep. is translated at -tiit* 
Bank of Japan as meaning "rrib 
at all.” ' -^ ;- 
. . The uhdertyh^ heed m'Japa^ 
.Is; fpr a jnqre;'. flexible syste% 
for corporations : r fludividoal? - . 
.will ; alwajs ' be.’.^he ltet .lfy 
.benefit from changes) to make 
effective '.Us^r. ot .. short-teriri 
surplus Binds' thnn^h attraej- ' 
i&e' ^hort-tertg money ' ihstru; 
/xoehts. ;'. Ctaa this 'point- there 
broad . agreement ; throughout 
Ae banking and. financial com; 
muhity. . ^Each }bank\. (hot/tg 
i&ehtiou' ttti: . -feithfiritiesl.. is 
guardtng a^ink Tahy change, 
v^iich could iprodnefi x negative 
effect -:; eb ^ profitability . 
infiuence.;enjqyed under the old 
- .*■ f: T ■ 1 

HRid iardHansott 

T .>r' ' . c 

■A: , 

JAPANESE accounting 

practices have been moving- 
very slowly away from their 
19th century German origins 
into the more fashionable (and 
perhaps stringent) British and 
American moulds, with Govern- 
ment authorities gently leading 
the way. The underlying theme 
of reform in the past two years 
has been -to make traditionally 
reticent companies more respon- 
sive to the merits of fuller dis- 
closure of information needed 
for investors mot to mention 
shareholders) to make sound 
judgments. The effort, though 
outwardly showing signs of 
success, has been painful. 

This year Japanese companies 
were required for the first time 
to introduce consolidated earn- 
ings statements, including in the 
calculations all subsidiaries 
owned 50 per cent or more. 
They were given the option of 
adding in on an equity basis 
other affiliates held' as to more 
than 20 per cent. Analysis 
shows that while the letter of 
the new law has been observed, 
most companies tried hard and 
successfully to ignore the 
original intent of the Ministry 
of Finance and the study group 
which drafted the reform. 
According to an official in the 
Securities Bureau of the Mini- 
stry, the two major problems 
authorities ran into in imple- 
menting the law were first a 
lack of experience on the part 
of many companies and second, 
a frantic effort on the part of 
many companies to avoid, or at 
least blunt, the- consequences of 
disclosure. ' 

Most Japanese - companies 
close their • accounts for the 
fiscal year to March 31. when 
the consolidation requirement 
went into effect. Except for a 
handful of companies which pre- 
viously consolidated earnings 
statements to meet U.S- Securi- 
ties and Exchange Commission 
standards— they are the first 
such statements to be made, and 
reflect a twn-ycar scramble to 
take advantage of the loopholes 
In the regulations. 

The major weakness of the 

present rules is tbe exemption 
of companies owned less than 50 
per cent The other significant 
point is that the consolidated 
statement has no bearing what- 
soever on a company’s tax 
treatment; all accounting for tax 
purposes remains linked to the 
individual parent company 
statement and the separate 
statements by subsidiaries under 
present commercial codes 
Tbe Finance Ministry does 
not expect to be able to tigttten 
up the requirement for report- 
ing minority held units on an 
equity method for at least 
another two years: and there is 
no thought at present of chang- 
ing the tax laws. 

by consolidation. The; Toyota.- meetings rometimes rmi for as 
Motor, group is an accountant's - loag- as -Sye minutes' - . /: •• 
nightmare: Toyota Motor, the. Executives in rJapaiit though 1 
largest. motor manufacturer in na%altyfaimihg:* profits;- stilir 
Japan, - owns. only . 39.6 per cent - prefer, to maintain. operations— 
.of its marketing arm, Toyota a loKHrin aider 
Motqr Sales,, but other Toyota to keep emplpyees wpriemg/and 
associates,. Nippon -. P.enSo:, to avoid social -disruptions: _ One: 
(maker.- of ' 

tmaxer., or - ^ 

Toyota AutO-BodK y^y .f ew> -Japanese" companie s 

A Ter * riew.’ Jananese- companies 
cent respectively. * hi-'hniiRf>kiij'n--.Tnnn 


22.0 per cent by Toyota Motor -to r be gen'erali5ts 

and 0.1 .per cent by, the. Toyota. Irw.-to-fi)i^-a,£h^-teinn.^febfit 

shifted from its Origins as j ■ mde care^ibbir^irt^.-per- 
textile machinery maker to.. fork-. fbnhance^b^'ifldr-e'tiDf^fe 

A survey by the Nomura Be- 
search Institute, covering 268 
companies listed on the first 
section of the Tokyo -Stock 
Exchange, illustrates some of 
the problems involved in read- 
ing a consolidated statement. 

Of the 268 companies sur- 
veyed, more than half (145) 
chose to include five sub- 
sidiaries or less when puttiag 
together the consolidated state- 
ment An -additional 57 com- 
panies add the results of 10 
subsidiaries or fewer for an 
overall average of five to six 
subsidiaries per parent com- 
pany in the consolidation. The 
average Japanese company is 
estimated to have about 20 sub- 

When a firm date for the 
new requirement was set, com- 
panies quickly began to shift 
shares held in subsidiaries . 
which could prove a drain on 
overall earnings outside of the 
parent company. Most, often, it 
appears, the shares ’were taken 
in by other - subsidiaries or by” 
friendly members of the larger 
industrial and financial group- 
ings through which Japanese 
companies are tinned with one:- 

Some groups provide glaring 
examples of how obvious it is 
that closely tied companies have 
no need at all to be bothered 

isroaB ,™ unc groups -eomiriny^iprbdiAet^f -btilyroiL 
: trading company dependent: on. a 

other- ; Toyota companies " for - appear 

70 per .Cent , of iis busing) 
owned - 25.1 per cc nt by Toyota 
Motor -and 15.4 - per. cent: by, 

Toyoda. Automatic JU»m ^d-sq., 

holdings^? less than 50/ per. 

holdings of less Than 50, per. airoougq, 

centinall its major subsidiaries, - ^ s a ; r& ': 

and - can' avoid any meaningful PP:'Was less. 

and -ican'. aVoia any meaningful ™ ^ 

consolidation. '.V . : - 

• -a-. ■ ^... ... fl«rong;^om<Me^e» fn : the; 

Likewise, Nippon Kokab Kfc, suJjsidiifierfr'tbiiT^tboa^: 

JapahV Second. .largest steel- .r^u^^ pT.^T^ _ L 

maker and - . a leading- sKp- . > 
builder, .ft® -42 per-cent and. "A & •- 1 ”• 
41.4 per cent holdizigs in two of A. '• , - : \ 

Xwm Kokan earnings “i - . • : 3o}ida , tipit < ; it 

appar^Jt la<* of en^usia^ fdr- 
consolidation to;the'; - 

■the; Japanese -business ‘ 

juid yelate .closely, a£s injbitiiOBeiv^ergxiwtiqa 
CariierL -ta- the - local tax' r^, 

qtilrementEr - . Despite* growing - ■ 'Xorr;^-jiarelx^^c§^4roiii : 

executives, have - never placed; - 

much emphasis on Impressing^ . profit ■ angHtf j ttSjfc&ceaFin 
shareholders,; sbarehGl<?eS‘; . pro-^^i^r«Jn^.^«S^5§Trifar- 

'eholders, ■ sbareholffer^'': - ^j»rat^;proSy^pitai- 

V {ip 


i'pgsud of-s< 

as'vwJl as ner^j^d^»iiiBl-|&n«i^'m»K^j 

.aV^^hwe'fl«ise Japanese i nfkistttal .ac^ri^ are VpjirusariBfladEl. -i • V.t 

j^y* eur'sen/ices art ’^tfidrcpsfe ^ 

with any project < • \ 

*<%£j 40, j *$M{tt (US$23 4 TT7 miffibnf : 

V&'/frW £1S!maHS|‘ 

^'^■fes'of ujsfc^ZEZ&sj 

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VXy tk viiw v.-,i - iiAs.. 1 *^ c jw-^% ■ .i“ 'ic 


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As 011c of Japan's leading long-term credit banks, wilh 
assets exceeding USS34 billion, a long-established and 
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with major Japanese companies, we are in a good position 
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You'll find our staff of international financial experts 
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staking alargepart of- thetr - 
future on tteveioping— -alid 
rapidly— their • business i over-; 
seas; where the adsrace'So far 
*' has already caused .~axme/un> 
5 easiness among both their rivals 
In , Europe mid: America ; and the 
moire ta ry authorities - at . home. 
u Birt if -tbe money men: here have 
L their -way, “ made in Japan '* 
Toans and banking services will 
be as ; common as the TVs, 
stereos, ships and. can which 
Japan's giant traders 'arid- manu- 
facturers made famous from 
Bangkok to Brazil iir the 1360s. 

The figures on- expansion by 
Japanese banks are impressive. 
Since 1070 the - . number of 
branches overseas has -risen 
from 54 to 121 from 23 banks 
as of the end of October. 
Affiliates overseas in the same 
period Jumped from only six to 
"28, with another 048 representa- 
tive offices spread throughout 
all- corners of the -globe. 

-The Bank of Tokyo, alone, 
Japan's • specialised foreign ex- 
change hank, with the most ex- 
tensive Japanese network over*, 
seas, claims, more than 300 
offices -around the world. Zt 
believes itself to be the largest 
foreign bank in the-U.S., where 
it has six' agency and branch 
offices, -four, representative 
offices and four American sub- 
sidiaries abd affiliates for a total 
oE .115 offices employing, more 
than 2,000 Americans. 

By comparison, foreign banks 
in Japan have expanded from 37 
branches in 1970 to 82 now, set 
up by a total of. 60 banks. 
Foreigners also maintain 89 
representative , offices in 
Japanese finandai centres. . 

Jng services, .Tea years ago the 
affiliate, of a Japanese company 
would almost' Inevitably' submit 
a letter; of guarantee from the 
. parent dora pa r»y in Jjapim, with 

- Japanese banks -backing’ -it up. 
for funds needed to expand or 
run operations. Now -many of 
the established overseas’affiiiates 

have built up. strong Passers 
locally for use as doUaTeral in 
Jocally acquired loans*..' 

This natural drift away from 
•the. hanks of' .-home 
countries has spurred: Japanese 

- .bankers to expand business wilh 
the multi national concerns of all 
countries. The days or follow- 
ing the flag by Japaaese banks 
may soon be over. 




; r-;. . 

Japan is oxie of the most 
heavily saturated countries in 
the world as. far as banks and 
other fi nan cial concerns (includ- 
ing huge cooperatives, .and a. 
postal savings system with more 
than Y40.000bn (about $200bn) 
in deposits). Unfortunately for 
the. Japanese, banks their busi : 
ness .-at home; & ; ho' . longer 
expan ding 'tt tfier.'dizqring'pace 
qf 'the previous decade. . 

For the eight: years op to , 
r 2973 Japanese private spending 
on . plant and . equipment grew 
■ annually at a real rate of about 
16 per cent- While there is 
some sign in recent months that 
capital spending is no longer 
declining from the 1974 peak; 
there is little - reason to believe 
tbe long-term prospects will 
support much expansion of : 
lending pt homo by banks. This 
is the'main reason bankers have 
turned their attention abroad. 

• perhaps more significant for 
the future, ■ however, is a 
definite - shift in the banking 
priorities of Japanese corpora- 
tions themselves. At home. 
Japanese -companies can' divert' 
•nty fairly minor portions of 
their borrowing to ' foreign 
banks (though some major 
concerns rank foreigners very 
highly as sources for funds! . - 
: -But overseas many Japanese 
-companies : are. .. growing 
.accustomed to the use of local 
:bankg .= and of : the mammoth . 
^European. and American banks 
Jor Arrowing needs" and -bank-' 

Like the Bank of Tokyo, other 
Japanese banks ire finding that 
early entry into' fairly tough 
banking markets Ilk? Indonesia 
and' some Latin V American 
countries (which since have 
limited foreign biuik entry) 
gives them a decided 'advantage 
in taking care of thb financial 
needs of multinational com- 
panies there from all ovcr the 
world. There will -alsiFbe much 
greater attention, paid; to build- 
ing up local deposltviiases and 
serving local interesfe- 
. The importance’ "©J averse as 
business for tbe Japanese banks 
is hard to cal rotate precisely, 
and remains well below that of 
the D.S. major banks Jike Citi- 
bank and Chase Manhattan. But 
-the Bank of Tokyo ,io recent 
years has done more -.than half 
of - its business overseas and 
other of the major-' city, banks 
range from 10-15 per 
- pared with probably leas than 
XO per cent in the past 
.. The emergence of aggressive 
Japanese lending over the . past 
year has brought with ,it 7 a new 
crop" of adjectives to describe 
the phenomena so art; one 

suspects, coined bjr the Japanese 
bankers themselves. We- now 
have “ harakiri ” (suitidehy dis- 
em bowel merit) and “ babzai " 
(10,000 years’ life- for :the 
Emperor, spoken enthusiastic- 
ally) loans; to add ter the estab- 
lished' '* samurai " ^ yen bdnd' 
market Whatever phrases'are 
used to describe Japanese Rank- 
ing behaviour, the statistics 
leave no doubt as to what has 

According-to a ranking by 
Caploan International Finance 
Data Inc., tbe Bank of Tokyo in 
the January-October period was 
the second most important of 
20 top /managing groups in 
syndicated Euroloans, edged out 
only by Citicorp. The Bank of ' 
Tokyo had 71 involvements 
either as a lead manager or in 
lesser management positions for 
a total handled of $20.5bn com- 
pared with 90 by Citicorp for 
SZL2bn. Five other Japanese 
banks . (the. Industrial Bank of 
Japan. TokaiBank. Sanwa Bank, 
Fuji Bank and Mistubishi Bank)' 
were included in the top 20 

An earlier ranking of loan ■■ 
participation from January-. 
July, had put the Bank of Tokyo 
fourth behind Citicorp, Chase 
Manhattan and NatWest. In 
1977 a study put the Bank of-; 
.To|5yo at number eighteen- 
ahiong manager banks, the only 

Japanese - bank . among the top 
twenty. (The Bank of Tokyo 
because of its status as the sole 
specialised foreign exchange 
bank has received special con- 
sideration from the Finance 
Ministry on setting up overseas 
branches and other aspects of 
international finance business). 

Japanese Government authori- 
ties opened up in July 1977 the 
potential for Japanese banks to 
expand their overseas lending 
by issuing new individual 
guidelines on medium-term 
loans and setting rules on fund- 
ing with matching medium term 
credits for loans lending beyond 
certain limits. Banks now estim- 
ate that the average mix is 
about 60 per cent matching 
medium-term funding for loans, 
an uncomfortably high ratio 
since it rises even more sharply 
with- additional loans. 

There is some chance the 
Finance Ministry will recon- 
sider the present guidelines by 
the end of this year, a new 
attitude of caution by Lhe 
authorities over the reaction 
to aggressive lending by the 
Japanese banks may mean that 
terms will not be loosened as 
quickly as some city banks 


In October the Finance Minis- 
try and Bank of Japan told the 
banks that they should not con- 
tinue to expand overseas lend- 
ing as rapidly as in past months 
^partly on country risk con- 
siderations — and it urged them 
to move more toward co- 
operation with banks from other 
countries rather than stress ex- 
clusively Japanese groups. The 
“warning” was prompted by a 
desire to maintain the reputation 
of the Japanese banks and 
monetary authorities following 
foreign bank and Press claims 
that Finance Ministry deposits 
with Japanese banks were allow- 
ing them to cut loan margins 

Japanese banks bad been 
criticised both at home -and 
.abroad for an exclusive $500m 
loan to (he Electricity Council 
in the UK at the very low 
• margin, of 0.5 per cent over 
LIBOR for the first leg. Since 
then Japanese banks have shied 
away from low-margin lending, 
partly in hope of better profit 
margins later next year. There 
. was also much criticism among 
the banks themselves, which 
tend to compete fiercely with 
each other and are reluctant to 
pass up an opportunity to 
expand business that might go 
to a fellow bank. 

It is estimated that Euroloan 
syndicate lending by the 
Japanese banks will have about 
-doubled from a December 1977 
estimate of S8.9bn aggregate by 
the end of this year. 

' •'The- Government has encour- 
aged banks to lend overseas in 
order to offset tbe huge trade 
and current account surpluses 
.Japan chronically runs — prompt- 
big severe criticism from over- 
seas — in its overall balance of 
■ payments Lending by banks 
.-has taken on even more import- 
laiice as market conditions have 
;mide foreign yen bonds issues 
■jess of a factor in shifting funds 


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overseas. Yen syndicated loans 
have increased nearly as fast as 
dollar loans, suggesting 
Y626.5bn as of the end of 

Yen loans overseas this year 
were boosted by the entry of tbe 
life assurance companies with 
enormous potential yen funds at 
their disposal. The insurers, 
mostly in co-operation with the 
trust banks, which have also 
become more active in the past 
year, will have provided about 
Y134.6bn in funds for yen syn- 
dicates by the end of this year. 

The new Government of Prime 
Minister Masayoshi Ohira is 
expected to take a more liberal 
view of the use of the yen as 
an international currency and 
the issuance of Euroyen loans 
and bonds. But the most 
important priority will still he 
to co-operate with other nations 
in bringing about stability in 
the foreign exchange markets 
which could allow a correction 
of the present situation of Euro- 
yen raised overseas being 
cheaper than domestic yen 
■funds. A 100 per cent reserve 
requirement on free yen 
deposits by non-residents in 
Japan — imposed last March— 
would have to be removed. 

The term Euroyen refers to 
yen held outside of Japan and 
is very similar to the concent 
of the Eurodollar. At the begin- 
ning of November the volume 
of Euroyen was estimated in 
the range of $3bn-S4bn with a 
trend toward steady increases. 
Demand derives mainly from 
the need to finance imports 
from Japan, about 30 per cent 
of which are presently denomin- 
ated -in yen, according to the 
Bank of Tbkyo. There is also 
demand from speculators who 
want to hold yen. 

Because of an imbalance in 
the supply and demand in the 
Euroyen market the interest 
rate for Euroyen deposits is 
based on Eurodollar rates. In 
practice funds are usually con- 
verted into Eurodollars and in- 
vested with the reconversion 
into yen coverd by a forward 
contract. This provides cheap 
yen funds so long as the forward 
premium on the dollar remains 
high. Free yen deposits in 
Japan, which may be freely 
transferred abroad (approxi- 
mately $6bn) constitute a 
significant potential source of 
Euroyen, depending on future 
interest rates in Japan ^nd 
Europe — but for the present 
reserve requirement 

The Bank of Tokyo is also at 
this time encouraging the 
issuance of dollar bonds in the 
Tokyo capital market, following 
placement by the European In- 
vestment Bank fEIBi of 580m, 
for 12 years with a yield of 9.13 
per cent out of a total of $100m 
in September. The yen's 
stabilisation at around 190 yen 
per dollar at that time helped 
make the issue successful, along 
with the fact that EIB had pre- 
viously issued two yen bonds in 
Japan. The good reception by 
the market should improve the 
attitude of ■ the Finance 
Ministry toward dollar bond 
issues so long as they do not 
interfere with the yen bond 




increased only 7.5 per cent. 
Sales were up 11.5 per cent over 
parent results. The manufactur- 
ing sector, consisting of 189 
companies, had a net profit 
increase of 20 2 per cent, while 
□on- manufacturing concerns 

posted a decline of 15.3 per cent 
in profitability. 

What consolidation revealed 
is that in most cases the in- 
vestor^ will learn little more in 
analysing a Japanese com- 
pany by. looking at the consoli- 
dated statement than at the 
parent company statement. On 
the plus side, however, the 
exercise has perhaps spurred 
Japanese companies to take a 
closer look at streamlining 
their financial operations. More 
often than not subsidiaries are 
in worse condition than the 
parent viewed from an equity 
ratio and a profit standpoint. 
While much of the subsidiary 
shedding could be attributed to 
efforts to keep up appearances, 
the underlying trend for the 
future bas to be to improve 

Japanese companies are also 
being pushed toward greater 
disclosure by revisions in the 
requirements for semi-audited 
mid-term financial statements, 
and studies are underway on 
how ' to introduce some form 
of inflation accounting. There 
-remains considerable difference 
of opinion among accountants 
and in. the securities industry 
as to whether these require- 
ments 'will prove any more 
effective in prying useful infor- 
mation from companies than 
consolidation has so far. 


Mil r/£E IUU£ iL.r/11, i/c-ii uiviwl 

™ E 



Head Office: Otemachr. Tct-vp, Jaran T*:f 21 1-51 1 \ ToIp*: .124300 New York Branch: 140 Broadway. New Ycr( , < N.Y. 10005. U.S.A. 
’ Tel: 7&74170 Tel? : 42S7.'2 London Branch: 0 LoinbarO S'reel. London EC3V-0AH, U.*‘. Tel: 623-951 1 Tele.-: 885305 
"' Los Angelos Agency: “-37 iWrc boi.* ,a wir.i, Los Anq^lw. California 90017, U.S.A. Tel: 488-1766 Tele/.. 673553 

Amsterdam, Sydney, Sso Paulo, Singapore, Frankfurt, Paris, Hong Kong, Brussels 


We at Fuji bank are proud of a 98 year 
heritage. In all this time, we’ve grown to be 
one of the world’s largest banks. 

Today, we have offices in major financial 
capitals around the world. Our talented, 
multi-lingual' staff provides our customers 
with the finest service and up-to-the-minute 
financial information gathered by our 
worldwide organization. 

As a Fuji Bank customer, you’ll find we’re 
always anxious to provide you with sound 
financial advice. Because we realized a long 
time ago that our success depends on your 


Tokyo, Japan 

Overseas Offices: - New York - Chicago - Los Apgein - Houston - Toronto - Sao Paulo - London - Ddsseldorf — 
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rii.'* ■SEEK* 8 *'"' 



Success in international business transactions can be 
very much dependent on the successful arrangement of 
international finance. 

So you’ll need all the resources and expertise of a major 
international bank behind you. Such as Bank of Tokyo. 

We’ve got branches and connections spread over the 
length and breadth of five continents. 

And enjoy a worldwide reputation as one of the leading 
specialists in all the complexities of foreign exchange 
and corporate finance. 

So when you’re planning your next business tripit makes 
sense to plan a visit to Bank of Tokyo first. 

London Offices: 2W 24 Moorgatc. London EC2R6DR Td: 01-658 11171 
and 1 Hanover Square, London Yv 1R 3RD 

Your international connection 

A name you can bank on. 

■ • * '* ■ : Y Vv • : 

HSR;.: <. 


. =■: ?? ■■ y 

\ r * - • I X 

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'Jjr ' ' 

Taiyo-kobe Sank is a dynamic bank. 

A growing bank. A bank that makes ir a point 
■to stay on the move. - in Japan, our branch offices 
reach out to over 300 locations nationwide. While 
■around the woriti.we go to key financial centers. 
So no matter where you-do business, chances 
are good we can lend a helping hand, if you travel 
as we do, it’s goodreason to get together. 

You'H traveling m the best of .company. 


'grm?d by a merger sf.Bantc of Kobo and Taiyo B»ak 

amn OltiMi Hnrtouwa*: Vik,-; 

hNwOl'Kn'^ fv>> 105 Srortl*. HOUSIKn, ChKMK. ~r. -,.vj ■ 

“/ «nr«i'W. c, q-s-sfa. H^n Ko-W,. jtfijp. , 

y&ortt -Owned Subsidiary: Twyo Kobe Fmaace Hortq Kong Limited 
flprtmNo. ISGW Gar*TBMiMc.use. 12 Hjtcourr Road. Mono r.onq 
.Tel. &-2S€i:t Tele*' 75-1Q6 TVjCSM HX 

j Kong,Tokyo... 

itomo Trust, with assets of SC4. ? bii- 
key position in the powerful Sumi omo 
me of Japan's leading banks. For over 
tury we have specialised in providing 
medium-term financing for every key 
he domestic economy, 
ilso offer a full range of international 
rvices to customers worldwide. Services 
e provision of long- and medium- term 
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g in the Eurocurrency and U.S. markets, 
ng bond issues floated overseas, eic. 
your financial needs in Europe, Ameri-* 


& Banking Co., Ltd. 

Uaiy.y jnq Karg TVIrphone 5-236026 TelCVbJS90 SMTRF H V 

THERE WERE two great invest- 
ments one could have made in 
early 1978 — gold and Japanese 
securities. President Carter's 
dollar defence measures an- 
nounced on November 1 have 
since cooled off the short-term 
investment prospects for gold, 
but the value oF shares listed 
nn : the Tokyo Stock Exchange 
(TSE) continues- to reach all 
lime highs. Not a few Tokyo 
brokers are wondering if maybe 
the pell-mell rush to buy 
Japanese Securities is reaching 
dangerous proportions. 

It was only one year ago that 
Japanese share prices were 
being written off by inter- 
national investors as hopelessly 
overpriced. Many were worried 
that the deflationary effects of 
the soaring Japanese currency 
would stop the nation's -export- 
led recovery dead in its tracks. 
Both foreign institution* and 
domestic individual investors 
decided to pull out, dumping 
their portfolios in the collapsing 
market. Export-related shares, 
which had been slipping ail 
year, led the downtrend. 

The selling reached a cU max 
when the yen rate topped 245 
to the dollar. On November 
27. 1977. the market indicator 
fell 2.5 per cent to 4,597 yen. 
the low for the year. The next 
day funds poured in from the 
nine domestic investment trusts 
igniting a rally that has yet 
to end. 

Since then the Nikkei Dow 
average of 225 leading stocks 
has set a number of successive 
all-time highs, passing Y6.000 
by the end of November. That 
means that the average 
Japanese share price has risen 
a dizzying 30 per cent in the 
last year, and there is n« sign 
that the bull market will end 

of spurring, the economy the 
government slashed the discount 
rate by 3 per cent in fiscal 1977. 
from 6.5 per cent to a record 
low of 3.5 per cent. Call money 
rates are scraping bottom, 
encouraging margin - financed 
speculation. The. Japanese 
banks are paying a miserly 1 
per cent on demand deposit 

bank accounts,' and the longest 

term deposits are not paying 

much over 5 per cent. 

Japanese corporations, re- 
luctant to make new capital 
investments as long as consumer 
spending remains stagnant, are 
bursting with unused funds. 
The property and commodity 

markets, popular with specula- 
tors before the oil crisis, are 
now in the doldrums. In short 
there is a lot of cash lying 
around -Japan that has no where 
else to go. but the slock market. 


The booming Tokyo ft nek 
market can mostly be viewed 
simply as a by-product of the 
excess liquidity of the Japanese 
financial system. Never before 
has so much money been avail- 
able for so little. In the hope 

The Bank of Japan has not 
been helping matters much 
either. The central bank's inter- 
vention in the foreign exchange 
market easily passed SlObn in 
fiscal 1977. It is widely believed 
that it has spent at least another 
$7bn in the current fiscal year, 
exacerbating the country's 
liquidity problem in its efforts 
to prop up the dollar. Although 
the route may be a roundabout 
one. much of this money has 
ultimately ended up in the 
Tokyo stack market, driving 
share prices ever higber. 

What have people been buy- 
ing? Electric power companies 
have been among the favourites. 
Companies benefiting from the 
Government s public works pro- 
jects have been bought Other 
companies which have profited 
from the dollar's decline, such 
as oil refiners, gas companies 
and some trading companies 
have enjoyed continued popu- 
larity. Food, retailing and 
pharmaceuticals have also been 

Another group of hotly traded 

securities is related to the re- 
denomination issue. Many feel 
that the Japanese Government 
may soon order a redenomina- 
tion of the yen — that is an up 1 -: 
ward valuation of the country’s; 
currency by a factor of -100— -so ■ 
as to bring the value of the yen 
into line with that of the-' 
Deutscbemark and Swiss franc.' 
Because the move would require:: 
a reprinting of an entire hew 
money supply over a period /of' 
years, the shares of printing,' 
ink and pulp and paper com- 
panies are being aggressively: 
purchased. •_ 

Shares belonging to the 
‘latent asset” group which in- 
cludes railways, trust, and pro-v 
perty companies, are following 
the shares of the redenomina- 
tion group upward for reasons . 
that arc peculiar to. Japanese 
accounting practice. Most 
Japanese companies cany their 
assets on. their books at their 
1946 value. Japanese accounting 
experts familiar with the Gov- 
ernment's thinking believe that 
if redenomination occurs, com-' 
panies will be required to list 
the value of their assets at cur- 
rent prices. This would flush out 
the true value of companies 
which have a large number of' 
fixed assets which are now.; 
grossly undervalued. * v 

seven per cent real economic 
growth for fiscal 1978, ■■ the 
.Diet voted for a record 
Y5,450bn in public works pro--- 
Jects. This figure has since 
grown with the .introduction of 
a Y2.500bn growth package 
last September. ; The massive 
Government spending pro- 
gramme will give a boost to 
profits for construction, and; 
related companies, so the shares 
of these companies are being 
.actively bought • ' 


Last but not least, the 
“political stocks”, have been 
active. Shares of small 
capitalised companies that 
usually have dismal business 
prospects suddenly see tradihs. 
activity, it is thought because, 
they are being manipulated by 
some of the country’s larger 
political factions. The purpose, 
of the exercise was to raise 
money to finance the November : 
in trap arty Liberal Democratic. 
Party (LDP; presidential elec-, 
tion. ' 

: This year's rally has been, 
unlike those in previous years. 

; While buying has in. the past- 
concentrated on a .‘specific- 
group of stocks for several- 
months, this year speculators 
axe switching groups much 
more rapidly. It ..has" become 
quite common for a stock to 
jump 10 per cent in a.' few 
hours of concerted buying, only 
to drop back down a few- days, 
later. Brokers are ; calling, this 
type of price ' movement* 
“ circulating selection,” . a. kind 
of rotation buying that has 
made picking - winners 
especially difficult. Despltethaj : 
fact that average share 'prices 
have been rising, Kabutocho 
(Tokyo's equivalent -to Wall 
Street) is ..littered with 
casualties. . . 

requirement — the . mUriymn 
amount Ofcasb brokers ' must; 
put .up So buy - shares pa credit 
—has be^ increased .friici 30 
■ per cent 'to\ 60,per cent of .the; 
purchase pTittl^The 'big/^our K 
Japanese . brokerage;.:. .houses 
(Nomura, . : ;Nikkd,;_ -Daitfa' and; 

Y amai chi) hive Tieen • ordered, 
not to ' p orsneT* e rder s' from the ; 
general public, ^. aggressfrely. ' 
The major^iavestment :trfcsis, ; : 
which- are mostly w® d by. thfe 
large brokerage ^Houses ,'^hd; 
have . been- : big : 'hujerS p ; 
securities ; this, year,-; have. r also} 
been told' by; the ;abthbriti& Toj' 
maintaiif a_lower proffle._:,;:-.-- ^|. 

- Where will the '-marked:";-, gp* 
.from .here ?- ^Ebe 'conventional’:.:, 
wisdom, if such a .tiling is ^to 
be .-trusted, states jthat as : long - 
as -interest rates are -row share - 
prices ' will , .keep: going: up. ;. 
Most -brokers -see^.the: -raarfcetv 
rising to. 6,200-6,300 yeh;hy ;_the i.' 
end, of ■ January, 'and . possibly : 
up to . if the ^Government 
annp'uncei • thht:.' 'it; : : Js-; .gotagf- 
through with: redenomination-, '.v • 
The - co'nveotional ■ vrfsdom, 
then goes bb to predict a shake- 
out sometime around February. 
By then it will become ■more 
clear whether or not the barter', 
dollar defence measures will 
have more than _a temporary 
effect or hot ipf stabilising the! 
American currency,. ; ; ' ' I 

Another major group of. 
active stocks is related to 
Government expenditures • - in- 
the public works area. To reach 
the widely promised goal - of: 

Japan's last • easy money 
market occurred in 1972-73 
when the Nikkei- Dow roughly, 
doubled. That buying. 'spree 
ended with -an abrupt 35 -per. 
cent crash. As . share prices 
continue their unbridled, ascent 
above the 6,000 Igvel an in- 
creasing number of brokerk are 
feeling a sense of dejd' Vu and.' 
fear that the present- .market, 
may end with a similar shake- 

, TSE authorities have : been 
taking a number of steps to 
cool down the overheated 
'market The margin collateral 

If they do prove to.' be 7 oft 
ihger term value, they .WtiT. 

lodger term value, they - will , 
help to alleviate . Japan’s 
liquidity problem.' .Not ouly. 
will title BOJ stop injecting j 
more funds into the market, 
through' its intervention actiyi-| 
ties; there wtiLalstr be a'siffnifi-.: 
cant' outflow . of-. : fuhds from-. 
Japan as investors seek to take^ 
advantage . o/.; t: tiie;V stronger/ 
dollar, recently relaxed rules J 
regarding foreign investment; 
for Japancse^ ^ institutions-: and r 
the - yawning interest differen- ‘ 
tiai • that .. .currently - exists 
between Japan and the U.S. 

Stephea Bronte 

Bond prices 

. .nii..::. 

- I: - - - 

by State funding 

THE JAPANESE Government’s 
reflationary funding policies 
seem to have fallen flat in 1978 
— at least as far as National 
Bonds are concerned. 

Since 1975, when deficit spend- 
ing began in earnest the Govern- 
ment lias poured Y43,000on of 
us uouas into a captive market, 
wnere interest rale structure as 
wen us bond instrument variety 
are determined by tne Finance 

This amount nf National 
Bonus, four times more than the 
total floated betore 19)5, was 
necessary for financing tne 
heavy public works spending in- 
tended io take up tne slack in 
the growtn rate caused by 
declining exports. 

The policy was not seriously 
questioned until this year, wnen 
lue ivauunal Bond notations 
tiatienea the market. What the 
Government seems to have 
ignored until now is that a bond 
market, controlled or otherwise, 
still operates according to its 
own laws, and even with tne 
best oi lnientious, market parti- 
cipants cannot force bond prices 
to respond to political promises. 

Historically viewed, wnen 
Japan was faced w-itn the prob- 
lem of tutal economic recon- 
struction after the Second 
World War. the Government 
decided to use the still very 
limited bond market as little as 
possible. The policy was to keep 
interest rates low. and limit the 
types of monetary instruments 
available so that interest of the 
investors — bviks and security 
houses in tnis case — would be 
focused where Government 
funding most required it 

This was a rational plan as 
long as economic problems were 
simple, but it is hardly suited 
to the intricate tangle the 
Japanese financial world has be- 
come. The recent collapse of 
bond prices, under the strain 
of domestic reflationary funding, 
illustrates this. 

Under Finance Ministry con- 
trols, Japanese City and trust 
banks are required to buy up to 
80 per cent of every National 
Bond flotation, consisting iargeiy 
of the cheaply financed 10-year 
maturity issues. The remainder 
is allotted to securities houses, 
who sell them both to each 
other, and. in very limited 
quantitk-w, to private individual 

When ihe banks want to sell 
the bonds they have already 
bought, they circulate them into 
the secondary market through 
the securities bouses, who must 

manage the old bonds along 
with the new issues. This tight 
'system was profitable to all con- 
cerned as long as bond prices, 
determined by the market, 
remained high. 

There was even an additional 
advantage to the Government 
policy of lowering the discount 
rate to promote economic 

This was that each time the 
rates fell, banks and other finan- 
cial institutions could sell pre- 
viously purchased bonds at high 
profits, since the value auto- 
matically increased. Apparently, 
the seven successive official dis- 
count cuts, from 8.5 per cent in 
April. 1975, to a bottom level 
3.5 per cent in tbe spring of 
1978, were all that kept the 
National Bonds popular. 

With high liquidity they with- 
drew their support of the 10-year 
year Government, bonds in 
favour of short-term, lower risk 
instruments, of which, the 
Finance Ministry has seen to it, 
there are very few. 

Thereafter, as the law of 
supply and demand would have 
it, prices of the long-term 10- 
year national issues — tbe very 
foundation of Government 
deficit spending — plummeted 
while value of the scarce short- 
term instruments rose continu- 
ally higher. 

visibly during the summer, fee 
securities houses were .forced 'tp 
offer more expensive terms to 
foreign borrowers, to insure: 
saleability, -and one after an- 
other, prospective borrowers 
cancelled their plans.. ■ / 

After the first seven months 
of the year, which saw 23 
Samurai . ' flotations, totalling 
Y551bn r only .the Government of 
Denmark was willing to accept 
a 6.7 per cent interest premium 
on its Y3Qbn issue in August, 

terms several. tenths of a point 
higher than .-the- -market had 
offered four nkroths previously;. 

Market conditions,- Which were 
expected to have unproved after 
■tile -summer season, 'Continued 
sq, poorly -during September and 
October thalfho government was 
interested in, Samurais... 

'late October* fee. Finance- 
Ministry, apparently '-convinced 
■of a'rcrisis, used its controUing- 
powers to prqp up .the market.. 
In two separate, widely " criti- ; 


•f.*."- „ \ :* r- • =• ■■ ; .- Vi -- ..' 

' ■■' jiojWK ,r r ‘"‘-'-i- " ‘ y.T'’'" s 

M 1 




By mid-summer, the securities 
houses were being flooded with 
10-year bonds which the banks 
were selling as soon as they bad 
purchased them. By August, the 
bonds were being traded at Y3 
under their Issue price — a mar- 
ket slump by any standard. This 
occurred despite, the securities 
houses' most energetic efforts to 
see that they were distributed. 

■' "i "V. t**. 

HAW %. 


At about this time, banks and 
security houses started to com- 
plain of lost profits, but the 
Finance Ministry declared itself 
firm on continued bond flotation 
plans, insisting that with 
liquidity being so high, finan- 
cial institutions should have no 
trouble supporting whatever 
was floated. 

In the meantime, the 
Samurais, the yen-denominated 
bond issues floated by foreign 
governments, had continued 
very popular as a low-cost source 
of funds (from the borrower's 
viewpoint) and as a means of 
increasing capital exports (from 
the Government viewpoint). But 
when the market began to sway 

Friendly and efficient'seryice ; (n a dyna mic 'ecdtib/tiy 7s ' 
thewinning combinationifi&bs^fl ■Quf^ra^h'ititOti 
cky bank of Japan. And n&w- ^^Tc deye!opxng,thtp an 7 - 
-/nternat/onaf financial complex . ; : " 

Perhapi more than '' 

. often its customers thd./o// bepefits of /ts ^gprariti.-" - -:j 
vrsion. The vigor that has/hiade it one. of 'hjtf tfejastesi, ■ ■ 
• grpvwn^ major banks'. fip3t}je\visian^f'x.ban^ - 

[-ri^rjdrge^ people afa p.ecip/e, ‘ 

: MEAD OFFICE: T0«lWAaflRWASAn/iaMi'R^ T ^V~>“7-- 

* «■« 

ww nMttr cam aAfa»rirra. jaore t*ra» -rqim, jzsaruuoant- 

eSwYdkfaHd ■ la r Amdw 

- .*%wn Mto - maw ■» sun nurriMwiffa tib^_ 

Decanter 20 1978 



■ • ' : "i *vS ;'.V FOREIGN BANKS are debating 
■* ' .*• '/ ‘u ;. *£ seriously lust -wfeat their; role 
«- •• ' * *!. : *Si '■} in the • Japanese financial com*' 

;■■ ' JC. nranity will he -te-tba-tetare. 

V* ; The answer will aepend-^earyiiy 

_ \ is ; » , J . on how the banJdUg' 'iminkayr- 

•- V-i’i ^ now .'. under /brpafi - renew— ; 
- - * - : -. cbangesi jjielf -litiit. - £«.- xStej 

■ • :. . "‘•* moijaehf-: there, It liltfe . Reason 

to tw too . optimistic;. . ; v . 

The .foreign banksarefacing- 

— <}. declining, volume ."in : lending.: 
.V*’; business, -sTnaijer profit margins ' 

it _ ... •■■ '.f i on the business, that is.avaiUWe 

i ;: i antf there is little. shm that con-; 

‘ ... * ditions wiil cbange. _The foreign 

- banks’ share of all.tjank loans 

r '‘ ; h'j and discounter in Japan has- 

- v: declined freftT owrrfr T>er :-cent 
- - r r> / in September,. 1875. and m peak 

- .' . *, 3i. p -'. of 3.37 per cent the following 

. ..^ year to 3i97 j>er r ieentat the end 

of : March. iris forecast 
. ' to decline -even .•forfher-to per- 
/ % hsps 2l83 per cent by next 

. V i- . : .£■ Marche'-;' - : ’ • ■ ; £ ; ‘ • . 

. -‘J ^ “Nobody, iis starving.! says- 

S m '" ■ • one . European "bank manager, 

„ • '■ >„ ■ long resident in .Tokyo, "but 

• ■ . *’• everybody tefeeling\tlte pinch.” 

•• if This : year - the foreigners have 
~ been helpei? V rorisldferaMy ' by 

... -• v '"■_!*!; foreign, exchange gains. These 

--i: s v “ Srj cannot bo expected to coritinu* 

* : : t -! ^ indefinitely, the banker notes, 
f / : “ “ it is now legitimate to ask 
r ' ’ what bur future ■will be," . : - . 

' The' foreign banics have seen 
• -/ . 1 a’ shrinkage -in tbe rate of 
' • • ‘ ir ~ \i expansionv in their . yen and 

* " . \ ' ir*{ foreign . -currency- iendin^. in •: 

t ? . . Tokyo over the: past three years 

. - - turn to' an' actu&I ^eelin& when 

J "- averaged together.; - Foreign ' 
.. ." • -• - ^.*v currency loans show the biggest • ; 

--^downward ; trend impact 
i ! C loans to Japanese corporations 
"r-.i have, changed in nature : from . 
: .-‘’."a- “sourtie'bf' fundinggrowth in 

. 4: the- ecbnpiny oyer; the past two: : 
:. decad« io a means of hedging 

- ;;i ., ^ against the " large amounts : of 

• 3 ,- ..' ! dollar receivables in Japanese 
..." ^ - company hands, while exchange ^ 
‘ rates remain- unce rtajjL-Dem and ^ 

‘"^ for ttiis klTid of dollar remains, 
y^Li but the . profit .' mai^ina have: ■ 
"r*t been cut . Banks: 'now view, a f 
per . cent spread above r LIBOR , 
rates as *• lucky toygeL" 

On thff^ yen - lebdiog side, . 
i \ conditions are not much better^. ' 

I- /XM Art • Foreign banks haveepjoyfid-low.:. 
[ M T I fJj I cost yeirfunds for part of their-: . 
IV, I 1 Ly ; operatihg. needs through the 

swapping of . dollars Into ^en at and use of yea funds for .off* 
: a 'very, large yen premium. shore lending, an area closely 
This .depends entirety on regulated by the authorities, 
cobditloos- . in > the: . ioonrign There are indications that the 
etdiause market The cosC of foreign hanks will win some 
praising .'dollars In Europe; .in concessions from the Finance 
mid-November, for exampl^w^ Ministry. The Ministry now 
: 11 1 per cent which couli^ien appears ready to authorise yen 
be swapped into ' yep Ckt a CBS for the Japanese city banks 
. premium of 10.36 per pent for and for foreigners, perhaps nest 
. a yen cost of oifiy l^SS per cent year. Opposition from the long- 
This is well " below 'rwhat term credit banks (who are 
: ; Japahese banks have to ■ pay allowed to fund with long-term 
locally,' but. In October,' that paper) and trust banks remains 
same yen cost had risen as. high strong, however,, and the final 
.as 3.865 per cent. - form and conditions uncertain. 

Foreign bank representatives 
^iWiin have recently given their views 

‘ " : ' . • before the committee on 

- 'The F frigp re Min istry ;4n Mav financial systems' research set 
-this year raised ihe swap limits up to study the banking in- 
.<m foreign banks to compensate dustry. Contention has been 
for- the. sharp dectin^-in-ihe ex* that Japan needs a freely com- 
chango.-value of the doHar. (the petitive financial system. “A 
base for the limits).' Bankers variety of restrictions has pre- 
say that- the supplement helped, vented us from developing the 
but did not ewer tbdr; actual yen funding base which would 
loss of funding ability in some otherwise permit us to play the 
cases. The limits, dn general, active role we. would want. As 
vary from bank to fcmik~eet by a result, we find our business 
the authorities— and spjrie ban- opportunities declining, with 
hers see large inequities in the the outlook increasingly ^ n_ 

allotments.. r -'^ : • - favourable," a, Bank of America 

: Banks which have^hew long official testified. 

. established in Tokyo^aje some- Even if the foreign banks axe 
times able to fund aB.^ .their able to win. better funding 
lending through the ehfrip swap bases in Japan it is open to 
facility, while heweoxflers with question whether they can com* 
more. aggressive'-.; :: catch-up pele with the Japanese banks 
strategies find they cahpot com- (also hungry for new lending 
pete. because they havevbuUt up business here and overseas), 
large loan portfolios,- - In^any Typically a foreign bank wait 
case, long gone are the days have close and important ties 
when foreign banks were ,in- w ith a small, numb er of •the 
creasing lending at breakneck ia, r g er Japanese corporations, 
paces. Between 1971 mid 1976. sometimes ranking in the front 
the outstanding volume of 0 f second level suppliers 

loans made by foreigners rose of They do not however, 

16 more than Y3,500bp from a J)ave ^ peTSQim ei and other 
httte^mre than of resources to broaden -their 

figure /Wood ac ( 3 vities. There is mrtually no 

most difficult choices. None are 
likely to close down, but down- 
grading of operations is 
Inevitable as Japanese 
borrowers become more selec- 
tive (and geographically sensi- 
tive) in choosing lenders. It is 
very expensive to run a branch 
in Tokyo. With an average of 
about 40 employees per branch, 
annual operating costs oould be 
Y45m. Some banks have con- 
tributed strongly*— given the 
relative size — to overall home 
office profits in the past, but it 
is getting more difficult to do 

Foreign banks in the past 
have added to foreign exchange 
operations in efforts to raise 
their profitability, many with 
much success. The largest of 
the tianks — particularly the 
Americans — ■ still appear 
desperate to find other ways of 
offsetting their costs. They have 
built up large, unionised and 
expensive staffs, and business is 
on the decline. These banks are 
turning more and more to such 
areas as consumer financing. 


at Y3i3S3bn. 

chance — or desire — of 

With the decline in foreign 3 nowed to purchase or merge 
currency lending, the fore^jn wah Japanese banks 

banks have increasingly fa 
their Energies on winning' 

(foreigners have enough diffi- 
culty running theiT own shops 

Prisms of a J.p.o«= mm*. 



The - foreigners want greater „ ~ 

access to the call and bill di* comments forrigrrer) 
count nwtkets. They also want \ Of 4he 60 banks 

UUIUIL UKUKCta. aiicjt waui , — — r 

to be able to issue certificates ranches in Japan, S6.7 per 
of deposit, and greater. freedoSn cent we from the U-S. It as the 
in using funds, induding pax^/toailer regionalTranks from the 
ticipation in import financing* ; Ui>. . who ;are. faced with the 


But even in this currently un- 
controlled area anyone can 
establish a consumer finance 
company with minimum official 

The Government is now pre- 
paring to establish regulations. 
This may alter some plans of 
ambitious banks which see con- 
sumer loans as a potentially 
large source of profit in the near 

While the foreign bankers 
would like to increase their 
business, it is most likely they 
will remain content with what 
they have. If the role of foreign 
banks were to increase and their 
treatment be made more com- 
parable to the Japanese banks, 
the banks would have to assume 
more responsibility for their 
actions. The foreigners, as a 
special group, have been 
virtually guaranteed against 
losses on the major corporate 
failures of recent years. Most 
foreign banks have come to 
take — quite comfortably — this 
benefit for granted. 



Cised moves* the Ministry unex- 
pectedly lowered the interest 
rate on/a special one-year agri- 
• cultural deposit, and, at about' 
the sime'Hime. very carefully 
poured' Treasury payments into: 
- the. /*. dosed ” ’financial .system/ 
-together releasing -Y 2 ^TOba of 
otherwise ;unayailable surplus to ■ 
Mihjl purttiasers. . ... / , 
lit addition, National . Bond 
■ flotation amounts were’ reduced 
significantly -during the October 
to Becember period, to facilitate 
absorption by-; bahfcs/and securi- ; 
jp houses. ; . 

. .'.'These jrieasureB,:. impossible 
trol, helped the ioaiket regaJn , 
.enough-^ rijomentunx-ite; sustahi/ 
- : tvroj, Sannira fl 6 tatihns ; during : 
November^ hud abofiiec riiziae on 
December. -: Bat evan 
Ministry" moves, mnot be' 'said 
to have- succeeded bdiktirig 
the market hackon rls c 
For one thltig, the Vedezuelaa' 
Government issue which broke ': 
the two^moiPth-old Sanrarai ice : - 
seems to'hav'e : sold well/ part^ 
because of ^ €.7 jjnr cent Interest : 
rate^-highemnightopYe been 
reject^' inv October /by. New- 

.. - . 

Zealand, r i better-rated bor- 

In'tbeiame -vein, a subsequent 
Norwegian issue for five years 
’-maturity, sold out immediately, 
- as did tee five-year portion of a 
T»ecenfi)er Australian splJt-pack- 
agefitrtation. Bat sales for the 
10-year blodc of . that same Aus- 
tralian issae were much slower, 
: proving ggaia that tfa® Japanese 
investment! community, which 
must buy .75 per cent of Samurai 
primary / issues/ prefers short 
term Instroments. 

. Added to these indicators is 
the fact that; despite the special 
; Ministry steps? to raise liquidity 
■ and arouse interest in the long- 
r'terin Government bonds, they 
are_ still being traded at more 
/tban one yen belowlssue price, 

; which does not allow for profit. 

' Announcement of a pre- 
-liminaty. budget for fiscal 1979 
.. —which/could respite issue of 
‘ Yl&OOObn in. National Bonds 
f.(Y5^00hn more than this year) 

• :jnet with . strong protest from. 
' the .usually staid Japanese bank- 
ing community. A Sumitomo 
:Banfc executive has said that if 
of . Government distri- 

. bnticn and sale of the National 
Bonds are not Changed, his bank 
will be forced to sell the bonds 

/Gther hankers and finance 
market' participants have 
expressed fears that the 1978 
Yn.OOObn flotations have already 
sttelned the market to capacity. 

! :Other increasingly impatient 
- demands from the financial 
worid are for a wider range of 
instruments for investors to use, 
"WTth/^mphasis on the short- 
■term, lie Governor of the Bank 
of ■ Japan, Mr. Teiichixo 
Mprihaga, has pointed out that 
in -developed countries, except 
Japah, the tendency is for 
gqyensnent funding to be in 
short-term instruments. 
^/Meanwhile, Mr. Takeo Fukuda 
has stepped down from the 
/prime ministership. It was his 
,7/per ' cent economic growth 
; commitment that helped 
.Increase the National Bond 
dotation amounts. Bis successor, 
-j^r/ Masayo^ii Ohira, appears 
. i^re receptive to the argument 
'f^" downward revision” of 
“economic growth goals. And his 
-new Finance Minister, Mr. Ippei 

Kaneko, has gone so far as to 
say there must be limits to 
budget dependence on National 
Bonds. But other solutions, 
such as increased tax measures, 
are nearly as problematical. 

What is clear is that increased 
deficit spending is straining the 
financial system. ' The rift 
between the Bank of Japan — 
which must take national 
monetary responsibility — and 
the Finance Ministry has 
•widened perceptibly over the 
National Bond matter. 

Given the problems and pos- 
sible alternatives, the coming 
year could well see a certain 
relaxation of tee various 
Government controls, permitting 
freer play of true market forces. 
Predictions are, however, that 
the national budget will con- 
tinue to rely heavily on bond 
financing for a few more years 
to come. 

How these plans are to ' be 
carried out — and what alter- 
native of policy is to be deve- 
loped — will be questions facing 
the new Cabinet 

Karen Salzberg 

Grow with 
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. The Chuo Trust 8e Banking 
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I A 









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THE JAPANESE! Government At the 
has tried to fulfil its co mmit - ment hs 
meat to the U.S. and to its other successfu 
trading partners to make all capital fi 
reasonable efforts to reduce its of bank 
chronic current account and 
balance of payments surplus. ^ or 

In a communique issued last balance c 
January by Japan’s Minister for equiiibrh 
External Economic Relations, active ii 
Mr. Nobuhiko Ushiba, and U.S. developn 
trade negotiator, Mr. Robert 
Strauss. Japan said it was here t0 g 
“aiming at equilibrium with 
deficit accepted if it should ‘j) £vo i_ 
occur." The chances are Japan I GSK 
will not have to accept a deficit Japan’s 
in the foreseeable future, in trade 
despite a definite trend for when vie 
exports to slow down. Govern- dollars a 
ment efforts to boost “ emerg- 111 the fi 
i ency" imports of goods like 
enriched uranium have helped < 

i prop up the import side, but a moui>tet 
I an agonisingly slow recovery in the trade 
i domestic demand and existing $l4bu. 1 

At the same time the- Govern- 
ment has encouraged quits 
successfully an - outflow of 
capital from Japan in the form 

In October . the . first solid, 
meat has encouraged quite agns of dirinkage ware . sqen. 

successfully an- outflow of as the current account surplus ’ corapetitivenessr. T ’ : ^"'' Vr*; ' v "./. 

narrowed to $384mfrom $1^7biL ■ ■ ■ . ■ . ' 

capita iruui — ; — - 'Tmrdlv ,1976. When 

of bank lending and’ yen bond u, September and $136bn m 
issues in Tokyo by foreign October J977. Govern in ent 

governments and official agen- 
cies in order to bring the overall ' 
balance of payments ’inure into 
equilibrium. ; It has been less 
active in the area of official 
development aid but officials 
have .said efforts wfl] be made 
to increase the ootSpw oL funds 

October d9i7. trovermnem , Sports ihcrafeed^at abqut ^he 
economists now see the cuxrent. ^ pace^mth^l966&oi> tie 1 
account suxjflus for the year - s^ngthvp£,tfce..^g^^aapCtaf. 
endine next March at around ihv’estmenfrhefobp-thp^il- crisis; 
M4.fibn. slightly above' itfie Eourfhly..inI9^77^dd^trtde. 
(revised) official target for tlie -.rose' by an =ayutaEgb v .o^ sniper 
year but below tfie annual- rate cent » in_ r^I; ■ •terug- v . com pared 
t jX n sifthn cRf in -with only 7.7 ■per ceut'.iuv- tiie- 

earher 'months. Some -economists I9Ws; aljowlgg 

7~ Tv- .nmf. with the first-. current account. 

surplus \Toii.;k' ^eud^or. 

basis) ‘in three ypars.-.f 

Peaked ; §16-lSbn. . > ’“►-££ 7 *- 

\Jt£Se Sd b ^™t S ’^St mrats in Ortober featuredfS- XniprGVed - y \-$pS '■ - 

rfthe red compared with surplus^ of 'have- improved aS'.ttie naidtof; 
IwS ^San £t- W46m ^September and $334ni •“ the. yen’s; 

* ye* r earlier/ This was mbslSy- . -growth - of -exports -m^plume 
ApnI. In the Apnl-S^>t^ber , » _ a record $l.fibn tenns- reached a - peafc to- tbe 

half fte currentacco^t^^^ outflow on long-term capital second quarter bf~ 1&76; 
amounted to aboutW.Tbu account resultingfromstepped- current account. ,suri>lus ;; ^as. 


amounted to about $9.7bu’ and. account resulting from stepped- ' current account. ; surplus . ^as 
“St. -«P lentog abroad b,_ Japa* aS 

large inventories of raw current surplus of almost $24bh 
material mean that imports will an ^ a trade surplus of $20Jfrn 

not overtake exports for the 
time being. 

Eventful year 

$I4bu. TMs compares vrath_ a ^ j rom increased Japanese . export prices caused- 

mrrent surplus of almt^t 53«h investment overseas. The: rate' yea's apprecMtron.'^ J.^ ^rA- ' 
and a trade sur plus o f $20-3bn - flf Crease in overseas lending . qj l 'e'Ba I ric^f,T-okya -CondtiilM. 
for the whole previous fiscal -j s exper ted to slow somewhat -^ at th e main ' detenronant ' 

► ear - N T . in the future as bankers become behind- Japan’s current aceonirt 

,! more cautious about the quality balance' has been its economic, 
r. of borrowers and moreparticu- . rate. . It is 'generally . 

4'- lar about profit margins, but felt that the huge' surplus -Sal * 
•v the Ministry of Finance clearly w n Temporarily increased'. J^y ; 

*1 _ _ _ _ _ . 'expects the capital outflows to ne g a ti v e ** j-curve V.effeif.of 

1 I y pLj J - VI ‘ help offset the trade surpluses. yen » s appreciation. ^Adjust- 
4-JL V VvvL ' The causes of Japan's recent ment of the imbalance through 

. series of record current account ^ the yen’s - appreciation,: as JbSt 
‘ surpluses (the peak ’-was ’.negative effecr fthms ^ posqiva' 

• - - f : - j2.265bn in June); have been will take considerable; tiioe. ^ , 

• * 

for the yen 

summarised under five major For the Japan -win. 

headings by the Bank of Tokyo, have . to encouuige v consumer- 
First, Japan’s real economic spending tl^ttagh - stimulative ; 

JUDGING BY the best basic accounts to 100 per cent, md£ Jj"? a 

— a ,v. . 1 — simultaneously to impose a bajt.^ aecrease 

criteria available at the time— simultaneously to impose a ban 
most notably inflation rate on non-resident purchases of 
differentials, a huge and con- yea bonds from domestic 
tinning Japanese balance of issuers with outstanding 
payments surplus and a huge maturities of less ‘than five yeart 
U.S. deficit— the yen looked a and one month. * 

pretty safe bet for further By ^ em j ^ March the yen 
revaluation at the start of 1978, ^ already at 223.40 per doUar. 

growth rate slowed to an aver- economic measures-. (Bank of 
age of 5.6 per cent m .1976-77. Tokyo -economists, recommend-, 
about half the rate of the 1960s, ' income tax cittsy - which ynft- 
which resulted in - a, Jarge boost manuf^ imports. 

import growth. Over the -Iqn® Mat Japan will. 

• — r Z TC 

I I; — 

! .te;j 

when it stood at 237 per dollar, perhaps feeling /that the kind 

Few if any forecasters, how- 
ever. came anywhere dose to 

i ‘V- ' 

of drastic intervention tactics 
used in March- (which alone 

predicting the extent of the accolintet j for at least S4bn of 
surge in the yen s value which the ^ 5bn tota i in ^ ftrst 

actually took place. 

three mouths) were more likely 

In the first 10 months of this to fuel speculation than to stop 
year, the yen appreciated by no it— and also perhaps -reluctant 

• "■* 1 t'vi •*- - - - s'.'si* 

I - - • • -V • ■. *•. ■ iV.^’ 

less than 35 per cent, touching to lay themselves open to more 
an all-time peak of 175.70 per foreign charges of deliberately 

dollar on October 31. before the keeping the yen undervalued — 
November 1 announcement of the authorities largely stayed 

President Carter's comprehev- out of the market in April and 
give dollar support measures May. during which time the yen 

: j 

halted the climb. 


With the advantage of hind- 

briefly bit a high of 218, before 
retreaiting above the 220 level — 
stilil regarded at that time as an 
important psychological barrier. 

The floodgates burst open 

sight the mistakes in most again jn late June, when the 
experts' forecasts are easy Tokyo market was hit by waves 

enough to analyse now. For all of dollar selling from both 
the right reasons, they correctly foreign and domestic banking 

anticipated the rise in the yen and commercial operators who 
against the dollar during the had been keeping a sharp eye 

first half of the year — even on the progress of the U.S. infla- 
though it went a bit further tion. and on the lack of progress 

than most thought possible, by Japan and the U.S. incorrect- 

What they did riot take into ing their respective payments 
account was the impact on the surpluses and deficits. 

yen of the global flight from the At that time the Bank of 

dollar which reached virtual Japan felt obliged to come back 
panic proportions in late j n t 0 the market, but began 

October before the "U.S. employing rather more subtle 
Administration finally took intervention tactics than p re- 

decisive action. 

viously — buying dollars through 

Since then of course the a large number of banks rather 
tables have been turned. The than through a few selected 

speed of the yen’s decline to banks, changing intervention 
the present 195-200 per dollar points frequency and sometimes 

r . • ■ EuviTirT rl ^llerc -m a wicirm vnewlrnf 

range h'as been almost as spec- buying dollara in a rising market 
tacular as its earlier rise. to drive out the speculators. 

Foreign exchange markets are 

different time 

clearly becoming more and more different place, such tactics 
impressed by the gradual «>uld i? ve ^ een * n 

decline in Japan’s trade and J* atmosphere prevailing in 

current account surpluses, and Tokyo before the mid-July 
with heavy pressure off the yen i in 0Da »J i ‘ J ea “ In ^ 

for the time being, Japanese industrial nations they were of- 
Government officials have begun H me avail. 

to talk about the possibility of 
lifting — or at least relaxing — 
controls on inflows of short- 
term capital. 


. . Social welfare Js a subj«$ of seripus::.,[‘ 
consideration ift mofit^^erti.'sb^^ceia^A&n;/ ’ 
•In the twentieth century .aecept$ii©!.'V'/.i .’ : 

generation asocielybettertiiari hisown.- . 

The Bank of Japan’s interven- 

But such action could well be tion during June was estimated 
misguided. Judging stall by the a t over $goom but the exchange 

best basic criteria available, a rat e had soared to 204.50 by 
further, albeit gradual, rise in the end of the month. Inler- 

the yen again appears to be in veotion in July increased to 
the cards for 1979. §2.1bn, most of it in the last 

This year’s action on the week of the month when the 
Tokyo foreign exchange market market finally became persuaded 

began with heavy upward pres- that the dollar was unlikely to 
sure on the yen in the first be. greatly aided by the high- 

three months, during which the sounding promises of the heads 
Bank of Japan absorbed an of government in Bonn to make 

estimated S5.5bn In attempts to concerted efforts for inter- 
controf the yen’s advance — national economic recovery. 

which as often as not was led 
by overseas markets in London 
and New York, over -which the 

Between July 24 and July 28 
around $lbn are believed to 
have flowed into non-resident 

respbrisTbili^^ unique in making" >; . 

aecept^ice ofthis role jn society^ anintegrai ■ ‘ 

' part heir ba n k i ng s ervi ce. v'X : ; .'v:; 

’ Phiwais theonlyjapanese'cil^b^k to "/: .: ' . .. 

. combine banking and t r us tb usl n e ss. D ai wafet : 
'^usafuily int^i«ed;|?ajik|hg 
Gp'rnpnsirig banking i n terna ti-6 hal fTriancmg^v ^* 
trus^pensi o n tru 5t r and^jri esfatebus'rne^/-^ J 
-.' This integration is part o f. our^effort to f ulfil bur^ - ' 
social- responsibility’^ conslstentwftb .: 

needs in a contemporary environment V-V l , 

Japanese Central Bank h%d free yen accounts in Japan-— 

little or no control. (Since late despite 

^Z^?^****- ’ f -a'ft^y^nte^tedbanldng.5ervJce- 

arrangement with the New 
York Federal Reserve under 
which the Fed. intervenes at 
its request and on its behalf. 
But by the nature of the 
arrangement the intervention 
undertaken was relatively 

he New vvas applied to increments in 
re under accounts above average: 
£««■ «■ February levels). 

S nf 6 w,e At end-July the yen was at 
erven tion IW .80 per dollar. By this 
rri&tivel-r time the Japanese mouetaiw 
7 authorities bad clearly had 

The strength of the bullish eD0U Sh- 

. . Head Office: Osaka; japan. C *. . ' ,.' v ,. 

- London Branch: Winchester Bouse, 77 london VVaH.lxmdotr .. ' 

JEC2M 1BD ;; V ■>’ ' V.^ • r - . ■ .v , 

sentiment in the yen was well 
demonstrated by the way in 

Government spokesmen began- 
to remark quite accurately that 

which the market shruaged off .the problem was no longer so 
the Japanese authorities’ much the rise in the yen as 
decision in mid-Mareh to the generalised fall in the 
double the reserve requirement dollar, against not only Hie 
cm non-resident free yen Japanese currency but against 

§ingapore,.Sydney. Sao PaUlorHpng-ICbrig anil HbUStteTW • r 5 ! / j . 
Representative Oftfoes -r . V.-;'' 


; >v 





* I r 197S 





: *v ’ JAPANESE Corporations lifted. 
’: v ■ on the first section rrf the Tokyo 
<?;'■’ Stock Exchange (TSE) ■ showed 
a fall In revenue and an increase 
in profits dinlDg; tfie six months 
ended September r 197S- * ' Th«' 
phenomenon of a stmuttaneous 
revenue decline- and profit gain 
•. Is nfew :.tothe market— least 
since- the end of World War 
Two. -It would 'seem to -fpdi- 
'*>; - cate that Japanese corporations 
have become more skilled in 
adjusting themselves to slower 
economic growth and to the ris- 
. ; v ing value of the yen; 

Surveys ■■ conducted by 
•*. Yamaichi Securities and Wako 
; ‘c Securities, covering around 370 
«■ corporations- of the first section 
j of the TSE showed a UL5 per 
ry cent growth in current profits 
(including - . nop -operating 
- revenue) and a 2.7 per cent 
]■* - revenue decline for the first six 
• months ended last September as 
‘ . compared with . the previous six 
months ended last March. - 

The main factors behind the 
fall in revenue were first the de- 
flationary effect of the yen 
appreciation on - exports and 
secondly a . decline in both the 
prices and volume of domestic 
sales. This reflects the fact that 
> Japanese domestic economy has 

- '-.still not recovered fully from 

the recession. 

The main reason for the sig- 
nificant improvement in earn- 
ings included: 1— Benefits from 
the yen appreciation which not 
only reduced the cost of im- 
ported raw materials and fuels 
‘ . hut ..also produced exchange 

. galas on. import finance; 2— The 

- - j success of rationalisation efforts 

- conducted by many companies; 

1 ' and : 3— A significant ' improve- 
ment In the financial position of 

many companies'-, thanks to 

' declining interest rates-' 

Most . export-oriented ;' com- 
: panics were heavily hit; by the 
' yen appreciation, which' not 
only cut into export profitability 
■_ but also forced them cut 
.prices on the home market (bc- 
. cause of competition" ° from 
cheaper imponed • products j. 
Differences between good aiid 
poor performances ni 'the. same 
export-oriented industries de- 
pended largely npon tiie efforts 
made by individual companies 
to cope with the impact of the 
yen revaluation, -lions- 'than 60 
per cent of corporations listed 
. on the first section- of the TSE 
.were rewarded in their .efforts 
to register gains, ik-- .current 
earning level. In particular 
.manufacturing esetors depend- 
ing upon imported raw 
' materials were favoured by the 
higher yen. 


A typical example tof an in- 
dustry which benefited on 
balance from yen revaluation 
was the paper anff.vpulp in- 
dustry- It a squeeze on 
its home market prices owing 
to the incursion of cheaper im- 
ported products. This^ipwever, 
was offset by lower raw' material 
and fuel costs and by exchange 
gains on imports of wood-puip. 
Petrochemical companies re- 
couped- exchange ioss-oirtbeir 
exports by increasing naphtha 
imports which wcurped.. a. con- 
siderable amount of exchange 
gains. vV. • 

Some companies made the 
best of the higher yenJby’jegis- 
tering profits oh their .foreign 
currency-denominated Jiahilites 
which were sufficient +i> cover 
losses in ' export value. - These 

corporations worked on the 
theory that dollar-based 
liabilities incurred id the days 
of a cheaper and higher dollar 
would generate exchange gains 
from the appreciation of the 
yen by the time of repayment. 

Improvement in financial 
standing (the difference between 
interest .and dividends received 
and interest and dividends 
payed) was another character- 
istic of the September, 1978, 
interim, business result Three 
out of four companies covered 
hv the review improved their 
financial standing by reducing 
their borrowings. Toyota Motor, 
because of its srfind financial 
position and its active invest- 
ment of surplus funds in the 
bond and stock markets has 
earned the nickname ‘‘Toyota 
Bank.” In the heavy electrical 
sector Hitachi for the first time 
registered a Y2.5bn surplus on 
financial transaction which con- 
tributed to the company’s record 
current profits of Y3S.7bn. 
Hitachi successfully invested 
large sums of money received 
in the form of an advance pay- 
ment from electric power com- 
panies in the bond market 

During the six months period 
ending . September, 1978, 
Hitachi earned YISbn of profits 
from bond operations by invest- 
ing a hefty Y210.5bn. More than 
half of the members of the first 
section of the TSE improved 
their debt-capital ratio during 
the six months period. Sagging 
interest rates constituted the 
underlying factor for improve- 
ment in financial standing. Some 
corporations, however, particu- 
larly those with large amounts 
of surplus cash available for 
investment. complained of 
declining bond yields as a result 
of sagging interest rates. 

Securities companies forecast 
that Japanese corporations will 
register gains in both profit and 
revenue for the current six 
months ending, next March. 
Tli is upswing in business per- 
formance should continue in the 
first six months of fiscal 1979 
ending next September. These 
predictions are made on the . 
premise that the yen exchange 
rate will move at the level of 
Y19Q per dollar. 


It is also assumed that a 
5-10 per cent rise in crude oil 
prices will occur after January 
1979 and that the electricity 
industry will continue to pass 
exchange gains back to con- 
sumers in the form of rebates, i 
Yamaichi Securities predicts a 
5.4 per cent gain in revenue ! 
and a 7.1 per cent rise in cur-, 
rent profits for the current six j 
months ending next March. ! 
However, If the electricity 
industry is excluded, current 
profits are expected to rise by 
14.8 per cent Revenue should 
be up 6 per cent in the current 
six months. . 

However, there will be no 
such negative factor as a re- 
bate by power companies in 
the first half of fiscal 1979 end- 
ing next September, current 
profits are expected to gain 
another 8.5 per cent during the 
period. The bright prospects 
for the March and September 
1979 terms are attributable to 
recovery in the steel, 
non-ferrous metal and chemical 
sectors. Declining interest rates, 
benefits of the higher yen and 
rationalisation efforts will also 
contribute to the profit upswing. 

Yoko Shibata 

Our London Branch 

Ibu are cordially invited to vidt 
the manager, Me Akira lima, and Its st 


Winchester House, 77London Wall, London EC2M 1BE, U.K 

Telephone: 01-638-2191 


The Tcyo Trust & Banking Co., Ltd., Tokyo, Japan 

International Department: Address: 2-5, 1-chome, Nihonbashi, Chuo-Jcu. Tokyo, Japan 

Telephone: 03-271-7881 Telex: J22123 TYTBKIJ 
London Branch: Address: Winchester House. 77 London Wall. London EC2N 1 BE, U.K. 
Telephone: 01-638-2191 Telex: 885619 TYTBK LDN 
New York Branch: Address: 140 Broadway (37th fl.>. New York, N.Y. 10005 U.S.A. 

Telephone: (272) 480-1234 Telex; 222675 (TTBCUR) 

Hong Kong Representative Office: Address: 26th Floor, Alexandra House 16-20, Chater Road, Central, Hong Kong 

Telephone: 5-265657 Telex: 85198 TYTHK 

CONTINUED from previous page 



L any currency or commodity 
t- which appeared -a safer or more 
\ profitable haven for those able 
; | to lnake lhe switch. 

f " During the foliowing three 
,: i. months to the end of October, 
when the U.S, finally decided 
* that all semblance of a benign 
' .neglect policy -. towards . the. 

dollar must be dispelled, the 
• : yen had passed through the 180 
/ per dollar level (after that- 
foreign : exchange ; dealers saiH 
there were no more credible 
'• .“psychological barriers" left) 
end ..the Bank- of Japan had 
made further market purchases 
. estimated at abont $L30bn- 

.Following the announcement 
^of .the Carter measures the 
doTar Immedlaley gained more 
. than 10 yen, at - which point 
Japanese -exporters (-under- 
standably enough, hut un- 
. wisely, at it turned out), 
-rushed to sell the ITS.. currency, 
and the Bank- of Japan bought 
dose to $lbnlnone of the^mort 

memorable trading days' the 
Tokyo market has ever seen 
(November .2), pinning the fate 
‘at 188. . . ... J' 

Since then, as the market 
• psychology • has • gradually 
turned In favour of the dollar," 
eocouraging , .some reversal of 
leads .and lags, and some build? 
ing up of long dollar positions, 
the U.S. currency has not again 
needed such heavy support 

Recently the dollar actually 
recovered above tbe 200 level 
(touching- a. high of 203.40} a'nd 
"the Central. Batik has indulged 
in the luxury of dollar sales,' 
giving rise to a belief in the 
market 'that- the authorities 
' have an Idea of a zone in which 
they. would like to sec tbe ex- 
change • rate stay, at least for 
the ; . tunc 'being. '(The present 
belief • seems ■ to be that this., 
desired- zone is. between the low 
190s and- 200 but market- 
operators : ao not belief the 
authortles would- try- to stick 

to any zone for long if market 
.pressures, really mounted 
against it). 

:The effects on the Japanese 
economic recovery process of 
this year’s yen appreciation— 
. which- - followed a 23 per cent 
rise in its value against the 
dollar immediately gained more 
-already been profound and 

} The decline in the external 
surplus iu the first- half (April- 
September) of fiscal 1978, 
caused mainly by currency 
' appreciation, has acted as a 
powerful i drag on economic 
grdwth, and is the main, if not 
the only, reason why Japan will 
fall far short of its much-bally- 
booed target of seven per cent 
rcal : Gross National Product 
growth for the year. Most 
private sector economists are 
now pitching their growth fore- 
casts, for the year at between 
five .and- 5.5 per cent. 

.-Exports of even the most 

Foreign H xcha nge ' 

.. ’ international Finance 
Securities Investment Consulting ■ v 
. . Agency for Foreign Stocks listed' on 
• Tokyo .Stock Exchange '~v'; >; ■ 


haw n Ml BHif PwartmanK Y»«u 1-chon*.. Cftw’ku. ToUyb .T«Ji 03 27frBI ' 1 T«m«; 3233S38YS0TBT J 
London Bra* Gordon Heme, 18 Fi'nmnv dm, London EC2H 73P. UK. Tel: 01*28-572! IOS7 YSDTBL S 

Nh Vo* ImdK Ono World-Trocto Cw»iw. Suiw OTt/New V«», N.Y. 10048. U.SA, Td, 21%M2-Z300. T«i**: 222£M1 YTBC UR 
Harm Kan, R^raBUfiM OtfkK O01 t*ncHt(on hoUs. lO.Hln court fload. Hons Konj TM; 6-266394 Trtbu 83397 1TBC HX 
Vmu* Ynm and.HoMicu (Hong KotgJ LULIA *ioU»w«n*d wOiriaiMv): IBOt nutchaon Houw , to Hw autt Hoad, Howa Kong 
-.. TN: 5-766291 Trim; 83397 YTBC HX 

competitive Japanese products, 
including automobiles, are now 
declining in terms of volume 
and Yen on a year-to-year basis, 
while import volume is 
gradually picking up, and the 
Government’s forecast of a 
Y2,700bn current account 
surplus for fiscal 1978, down 
from Y3,500bn last /ear, is 
beginning to look more 
plausible than previously. 

In the first seven months of 
the year the surplus totalled 
Y2,07Qbn and the surplus in 
October was only Y74bn. 

In dollar terms, of course, the 
situation looks quite different, | 
partly reflecting the ability of , 
Japanese exporters to raise j 
their foreign currency export i 
prices because of their com- i 
petitiveness and/or the level of ; 
inflation in the export markets 

The dollar-based visible trade 
surplus in the first seven 
months of the fiscal year was 
a mammoth $14.91bn, and the 
enrent account surplus $10.1 bn 
' — already far above the Govern- 
ment’s original forecast, long 
since discarded, of $6bn. 


Some tentative estimates by 
private sector economists indi- 
cate the current account surplus 
in dollar terms will not fall 
markedly — perhaps by only 
S2-3bn — in fiscal 1979. from 
the likely fiscal 1978 level of I 
perhaps about $18bn. 

A Japanese surplus of that 
magnitude is going to be a | 
powerful argument til favour of 
continued yen strength against 
the dollar (tbe U.S. payments 
deficit is of course expected to 
narrow sharply next year, but 
It will still be a deficit), especi- 
ally if. as seems highly likely, 
it is strengthened by continued 
Japanese success ’in holding 
down: inflation to lower-than- 
U.S. levels. 

Meanwhile — as assorted 
realists and cynics long prophe- 
sised — the horrors which 
Japanese industries predicted 
would befall them if tbe yea 
rose beyond 22Q or 200 have 
failed to materialise. 

A survey by the Nihon Kelzai 
Shimbun, the respected 
financial daily, recently found 
that net earnings of a repre- 
sentative sample of listed com- 
panies in tbe April-September 
period were up 12.4 per cent 
from the preceding six-month 
period, .although sales were 
down 0.3 per cent 

Some individual industries, of 
course, such as shipbuilding, 
haye suffered deeply from the 
| yen’s rise. But leading groups 
in . other areas, including steel, 
vehicles and textiles, have 
managed to cope with the 
effects of currency appreciation 
by ruthless, cost-cutting pro- 
grammes ' (including, of course 
labour force reductions). 
Exploitation of the benefits of 
the higher yen in terms of 
lower costs for . imported 
materials— as well as of emerg- 
ing opportunities on the home 

By a Correspondent 

If expertise in securities is money. 


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■ ; Financial Tiiiies^We^^ 

The sad story of an 


THIS IS the story of how a 
French bank with impeccable 
qualifications approached the 
eager, if somewhat clannish. 
Japanese banking community 
over a large loan syndication for 
a French Government agency. 
The resulting mix-up shows what 
a balancing act between com- 
mercial possibilities and official 
designs the organisation of a 
major international loan can 

In early October Credit Lyon- 
nais was discouraged by the 
response to initial soundings on 
setting an interest rate of only 
l per cent above LIBOR for the 
first part of a 10-year S300m 
credit for Electricite de France 
(EDF). Japanese banks were 
among those who rejected this 
slim spread, first because it 
would be barely profitable and 
secondly because the Japanese 
Finance Ministry and the Bank 
of Japan told them in no uncer- 
tain terms that they should 
avoid heavy lending at very low 


Such loans are now thought 
to tarnish the reputation of 
Japanese banks and, more im- 
portantly, of the authorities 
themselves. When Japanese 
banks had earlier arranged a 
large loan at 0.5 per cent above 
LIBOR for the British Elec- 
tricity Council it was claimed 
(without proof) that .low-cost 
funds from official Japanese 
sources were enabling Japanese 
banks to make cut rate loans. 

Japanese authorities are very 
sensitive to foreign criticism. 
There was some feeling among 
Japanese officials that the UK 
authorities had taken advantage 
of zealous Japanese lenders in 
winning a very low borrower’s 
margin for the Electricity 
Council. The Finance Ministry 
estimates that it costs on aver- 
age about 2 per cent above 
eurodollar rates for Japanese 
banks to fund and arrange 
medium term lending. This 
leaves a very slim margin in- 
deed when the loan rate is 
A per cent. 

Credit Lyonnais came back 

with an offer to syndicate 
$600m for 20 years for EDF at 
the rate of 0.5 per cent There 
were many takers from all over 
the world including consider- 
able Japanese interest Events 
from then on ran roughly as 

Scene 1: Mid-October, a small 
number of major Japanese 
banks make contact with the 
dull grey Finance Ministry 
(MOF) in Tokyo for talks with 
the short-term capital division. 
C-redit Lyonnais has. asked them 
to participate as co-managers in 
the revised EDF loans. The 
MOF always “ kindly asks ’’ 
commercial banks to keep it 
abreast of large foreign loan 
syndications. Credit Lyonnais, 
the banks say, will keep the 
Japanese participation to one 
quarter of the total, or $150m. 
The MOF is happy: it has no 
objections to eo-managers put- 
ting up $30m each, providing 
the loan is international in 
nature — that is, not Japanese 

Scene 2: One week later the 
manager of the MOF"s short- 
term capital division finds that 
Credit Lyonnais has asked 
nearly every bank in Tokyo 
whether it wants to participate 
in the EDF credit. Calls have 
come in from more than 35 
banks showing that interest in 
putting up $3Qm per bank in 
widespread. Credit Lyonnais has 
apparently contacted each bank 

MOF, without much diffi- 
culty, calculates that 15-20 
banks at dollars 30m a shot 
adds up to nearly $600m. This 
begins to took just like the 
“banzai" or “harakiri" loan 
which the MOF is anxious to 
avoid. The banks interested in 
the loan are contacted by MOF 
officials. MOF edvases that they 
should discuss among them- 
selves bow to avoid dominating 
the loan. The MOF is witling to 
accept a $150m share for 
Japan but not the large chunk 
which now seems possible. 

Scene 3: The Japanese banks, 
en masse, inform Credit 
Lyonnais that they don't want 
to be co-managers, but might 
be Interested in participating 

as lesser members of the group. 
The smaller participation would 
probably amount to . $10m or 
less per bank. 

roles for a very' creditworthy 
borrower, especially after they 
have lent to the British. . 


Scene 4: mews of MOF 
“ administrative meddling,” in 
the very middle of negotiations 
for the loan, gets back to the 
French monetary authorities 
who, understandably, acre keen 
on getting the cheapest funds 
possible for a State-run agency. 

The French officials are angry 
at what they are told their 
Japanese counterparts did 
(there has not been any direct 
communication on the matter, 
at least as far as Tokyo's MOF 
officials know). It makes the 
French look bad to have the 
entire Japanese banking com- 
munity reject management 

French officials In Tokyo say 
the French authorities, should 
have .been consulted.-. . "Japan 
should realise that this kind of 
thing should have bees 
avoided," one French official 
huffs. He states that the' ED F; 
loan doesn't' need Japanese 
banks for completion, anyway. 
At the Bank of Japan and 
among private Japanese ban- 
kers there are rumours /the 
French Embassy will appro abb 
the Japanese Finance Ministry 
(or maybe the Foreign Minj(s-' 
try) on the matter. The Freiiicfi 
say no: it is up to the Japanese 
to explain their- inscrutable" 
ways. Official action is /pot. 
planned. V - 

Japanese bankers are critic&L 
of the way Credit Lyonnais pre- 
sented the whole loan to tbe 

Japanese. Could the French 
have been playing: on a known 
' tendency of Japanese banks.; to 
play inflow the leader iritoTwri- 
ness opportunities — thus 
making the , Frepch job; much 
"^easier ? One high ■ ra nking 
official Japanese source says he 
is surprised by the French 
tactics. If Credit Lyonnais bad 
asked only a few banks instead 
of involving a large; number 
■ «the syndication would have, 
-gone very smoothly,” he says. 
■At one point in the aftermath of 
the affair a- French-, :haiiker . 
; fumed that the Japanese. 
Finance Ministry unto-. heavily 
under the influence qf. a couple 
r of Japanese banks and that'was ■ 
why these stories of; “French 
mishan dling ” arose. 

that tt Japanese 

bante together, as tirte'EPFloan 
disciisstons^were, getting uadet 

cisrh for hieing “#>£> aggressive.? 

“ amEsKiitCmber 


-of -Japariesef hanka'-’asiiQg. : if 
.they - Wanted , tch parffispafe- in 
the .^oaniV 


-T oca 'WuiAc:.* 

tffiipaifiiii* *■&: rpmhtAi; ^£6$ 

r been/Ulne^ : 

Epilogue: the Japanese 'MOF ; 
says it has no objections-^ tq 
Japanese banks parti c i patin g in 
the EDF syndication. It says 

be. other TepereqffiittHSifecmfc'tite :? . 
$ad- : 

it as WalKag; tri ^^- Japanese - 
banks ; Jishff Mb ' X 
MOF . official haraentsvf^f -xmF- j ' 

fusion.' isapparently xpjHeijBWs' 

iriai -ini 

proTecte. --^- ';: ■: v 




•v; ;; 

. ■ / r >“ . 

i.'.-- f .7 ; \ ' -.v'-r-lr 

,J ; ;/ -t : i •> : 

■---*#<. ■ 


ruth about 

Japanese stocks 

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Tel: 03-287-21 1 1 Telex: J24275 c 

Lendon Branch: Princes House. 95 Gresham Street, London EC2V 7NA, England U.E.. 
Tel: 606-9231/6 Telex: 883317 

JAPANESE LIFE assurance 
companies have made a signifi- 
cant entry into the overseas 
lending business this year. 
Aided by a loosening of regula- 
tions from the end of 1977 — ■ 
and spurred by the same slug- 
gish demand at home for loans 
and low yields that faces ail 
financial institutions — the 
potential for future lending 
appears enormous. Even the 
non-life insurance industry has 
begun approaching the Finance 
Ministry for permission to lend 

This outward movement by 
the Japanese as insurers comes 
at a time when a number of 
foreign life assurance com- 
panies are expressing more in- 
terest in entering -the Japanese 
market So far, three U.S. 
companies have actually set up 
shop, with apparently favour- 
able results. 

pected to become more intense, 
as a result * 

It may be possible for She 
life assurance companies - to 
develop the expertise - and. 
experience in international': 
lending required to make u© 
exclusive yen loan synd ic ates.' 
Some, view .the potential fdr.-a 1 
large insurance company like 
Nippon life to -manage a yep 
loan as only one "or two years 
away. There will be, however^ 
considerable reluctance in some 
quarters of the Finance Minis-; 
tty to allow such a -develop- 
ment Insurance company 
officials also note that it will be 
difficult for them to attract 
mandates from those wanting 
to borrow from -the Japanese 

However, Japanese indus- 
trialists and authorities doubt 
whether ail the potential 
newcomers will satisfy the basic 
qualification of offering some- 
thing new and beneficial to the 
country in terms of insurance 
products or sales methods. 

Japanese life assurance, com- 
panies will have participated in 
yen loan syndications to foreign 
borrowers worth about Y134.6bn 
(£356m) by the end.of this year. 
The first such Involvement 
came in December 1977 in a 
credit to the Mexican oil com- 
pany Pemex. Nippon Life 
Insurance, by far the largest in 
Japan, will have taken part in 
IS syndications when those >n 
the pipeline have been cleared. 

Attention on the foreign 
insurance presence in, Japan, 
recently has focused on the 
non-dife insurance ride because 
of the prospects for Jarge 
(particularly U£.) -insurance 
companies to tap the Japanese 

On the non -life -ride about 38 
foreign companies are licensed 
to write various kinds -of 
insurance. Tbedr market share 
last year was only about 3 per 
cent of the volume transacted 
by Japanese companies. One 
estimate puts the foreign share 

at about 1.8 per cent; of th« 
net premiums (net. "retefeed - 
after reinsurance). - Non-life 
insurance business will grow 
more competitive as the result 
of a 20 per cent out fa fire 
insurance rates.. X.--' .‘i 

The three life foreign, 
assurance companies . J 2 iiqyrV 
operating in Japan are; : 

can Life -Insinance r (Ailco); 
whlch received permission t<y 
sell insurance in .1972;. Allstate/ 
the Sears,. Roebuck' affiliate 
which set .up,, in .partt^jfsMik; 
with Seifoi Stbrea in- Japan; and -; 
.American Fanrily -Life A^sur-- 
ance. Each was allowed: . in by 
the authorities . because , .they 
offered specialised products' 
or used, unique 'sales methods^ . 
Alicb\ sells a plait that covers 
medical costs; American : Faniiir. •; 
sells cancer- msuraiiqe; 'Allstata • 
set up booths in Seffia Depaxt- .- 
ment stores to' sell arrange -of 
products. Previous attempts at. 
over-the-counter insurance' sates 
by . Japanese oompameSi haye : 
failed. Seibu-Allstate 
ning one and a half years qjiead/ 
of its 10-year development; pfan 
and recently doubled ’ ' 'its -• 
capitalisation as, planned. ' Tim. 
others are also doing well. : V k 

. •' ' -i’ K.. 

. I->rro« 

tial ; , Insurance 'Company btV ; . 
America; . Jbe - world’s: ,largest^ : > -jlJCl S 
■ insurance’ compahy/is. currently , : 7T 
calculating whether a /Japanese.) ' 
operation "would-be profitable. ■ 

Ihe; Japanese industry has" re- 
acted with. apprehension . at the. j..- . 
proSitect fer sut* a large com- - 

petjtar. "PnideBtial has been : 
discuss ing a joffit venture- with 
Sony the ’ -dectironics mamrfa tv - 
turer. .'.'..7 :.' 1 7 • 

, ' The: Japiuiese; -industry •' fears 
tfaat Prudeniiai; Whose 'asSets of :* 
about 846hn dwarf ■ -those of 
Ja^’s ‘bi^ert:r;xx)mpany^ will 
■be 1 ; awe, : use; Sony’s 3,000. : 

. stores across the.-cooirtry .as ■■■& \ 
base for agencies Prudential, 

With- ite "affletsp^oid launch _ a ’ - 
vely -' pbwerfiLt . . advertising 
^campaign. * ’ . 

vjTJSLis- not known. .what; Pru* 


-deirtiai would ISce^.to- sell'- in 

japafi, 7; tboagh its executives 
haye indicated tiurt.tlrt^ Would. V": - 
-consider' the. Japan^e iiiaricet; ; 
■prmaisingi .. Other ’insuranar . 7. : 
company .officials note :that Pru? .Z. 


dentfaf could simp^Trir tbsslgiiV - 7 ' 

im SriVnr 'Mftnlmnaff' - -Jpoj» fjjjg': 

The’, prospects for future. 
entries . to • the market . -have ' 
become, somewhat clouded." The 
Finance Ministry says iruden- c 

up. Sony employees, 
first . year, of; Seibu-ABxtWe , s : . ' ~ 
operations; 'tbe insurimee . 
written was almost exclusively* 
for other . Seiba - employees. 

This has now dropped to ahobf h 

. n 

40 per cent of new iasteahee^v ' " r - c 
: sold. r • ; v‘ w •r 1 -— s ' • -: 


The degree of participation 
has varied from case to case, 
but in September life insurers 
provided Y45bn of a Y70bn loan 
to the World Bank: and in Octo- 
ber YIBbn of a Y40bn loan to 
Australia. In future the life 
assurance companies will oe 
limited — theoretically — only by 
the present Finance Ministry 
restriction that such lending 
roust not exceed 10 per cent of 
total assets. Such assets are 
□ow estimated at around 
Y18,000bn which means less 
than 1 per cent of the limit has 
thus far been used. 

The reason for stepping up 
lending overseas is quite simple. 
The average yields for life 
assurance companies have 
dropped from about 8-fl per cent 
a couple years ago to about 7-8 
per cent now. The Japanese 
insurance companies pay divi- 
dends to policyholders, which 
puts considerable pressure on 
them to make the best use of 
their funds. ‘Japan, however, is 
in the midst oF a large over- 
supply of funds domestically, 
and interest rates are at post- 
war lows. 

Life assurance and non-life 
insurance companies in 1877 
accounted for 5.9 per. cent of 
all loans outstanding in Japan, 
but the rate of increase in 
loans has fallen off as corpora- 
tions remain -reluctant to invest 
in new plants and equipment 
Assets of the life assurance, 
companies of 1977 totalled 
Y17.04fibn, while non-life insur- 
ance assets came to Y5.077bn. 

In general the life assurance 
industry is entering a period of 
slower growth. Officials project 
that future growth in assets and 
premiums will slow from Lhe 
20 per cent rate of past years to 
aibout 10 per cent as the nature 
of the Japanese market 
changes. Competition is ex- 

. urvuus tamers ra Japanese coanierparis ana a numoer Or ■- 
. these introductions have already-produced results. -.;r. : = ; ] 

This is only one ofthe ways iawhich we banielp;British?= ■ V.; | j 
companies seekingto'furthertheir businesswith^apani/-: 3? -T J 

If you are i nterestedin increasi ngyouc ex|X}rts,()rin-^. : . ^ ■ '' --?J 
forming a joint venture or licensing arrangemenL^H : -- 7 . ' 7 ; 

' >s' 

- ' - V" "r 1 ! # ■ 

pS? r.; --?:* 

■" < -L. 

Thefrsttnerchant bank'rrrJapaiv v > 

•<~s * X. - Rt 


— — >• - TOKYO. OITICE:-;^': : ' l .1 iTil i 

Charles Arnold, , , ; . Antony. Sfenfey-&nift,..: 

Kleinwort, Benson CTrmted,'- ^Koku^IButfding, i^i3^orrlk' r i ‘ : 'T 

20 Fenchun* Streep : - MarunopcW, Chiyoda-lcfc A 

London EC3P3DB. - • ' Toky^ifefSh ' " ’ " ' ’ 

Telephone :^*’ etmkr ' ' J 

i- i" r A 

f&M* * 


'• T;’ '• . 

' - - ^r .jwiw^jjit :W^nesday ffetember 20 1978 


1 v)Tti>^^^iii»: : : v i ■; V r 

4, I I 'T A v" 

ITAS ' THE motor : industry . of . the.. 33-2 mpg of the . petrol- replaces. A diesel needs a more 
— v llSarope -adapts to> eveivtaCreas* -■' engined Gog. "i-i .'' ' - P< 

r iag fuel costs and-demands for. <&t higher speeds too oteseJ e hi 

* a cleaner j environxxfent,: tho . fuel ';_ advantage -'^declines pi 

• 11 I I diesel 1 engined passenger .. car although, it wilt eUfl Jjav&.a com « 

^Vj I steadily gains gwmnd: / sumption perhaps 20 . or 30 per si 

4L The . move to diesel became oe at less than that of a petrol 3< 

inRiyTa i ; ; weanesuay ijeceiuuex * o 

JHiii * 5 diesel cars ga 

' ■ — . . - _ n - ■itnr*nia i ■■ _i. 

] o-* 

BY STUART MARSHALL, Motoring Correspondent 

[ Europe adapts to. ever, incireast eagixred Gcdf. 

powerful starter motor 

models based .on the 131 and will replace the Escort in two 
132 with engines of 2-Iitrcs or years’ time. Ford sees the 

lag fuel costs and-demands for. At higher speeds toe diesel’s heavier battery. It has to be 2^-litres capacity. These are diesel as a viable unit only in 


made at the Sofixn plant at the large, up-market car. 

a' -cleaner environment, ibe . fuel advantage • ; ‘ - declines pre-heated for perhaps 30 made at the Sofim plant at the large, up-market car. 

diesel engined passenger car although, it wiil etifl have a conn seconds before cold starting and. Foggia, jointly owned by Fiat, Daimler-Benz, which built its 

steadily gains gsmn& . - V - sumption perhaps 20 or SO per size for size, develops between Saviem (the commercial vehicle first Mercedes diesel car in the 

The move to diesel became ceot toss than that cf- a petrol 30 per cent and 50 per cent less side of Renault) and Alfa 1930s, is now well it to its 

apparent in' 1074, the first year ..engine, lower rates of tax on power than a petrol engine. Romeo. At present the Sofim second, million. This year, it 

of the energy crisis. ■ Car . sales diesel fuel are 'ah' additional On the positive side, a diesel plant Is producing a little over will have made 175.000 diesels, 

generally deeHned as economies incentive an some countries.: In has up to twice the service life 300 engines per day, but will out of a total 390,000 cars, a 

went into recession- and govern- Italy, gasoil bears a little over of a petrol engine and, given make 1,000 units when fully on- figure that would have been 

meats arteeply Increased petrol one-third of the duty on. petiroL occasional routine attention to stream. Given another 10 per higher but for the company’s 





^-;- r markets .Ip Europe— Belgium, more aiesel ears : than - any crawled up hills behind smoke- vehicle assemblers. Next year, moment, Mercedes is unique in 
■ >- Germany Bonagd and • counter va the world thougi its belching lorries, the emissions JJ* e5 ? e £& *?. se “ 45 * 000 marketing a turbo-supercharged 

;.*• ■r!^ 1 '- 1 Italy— their sales Jose by any - unrestricted autobahns - axo r the of a diesel engine ore inhe- and 132 diesel cars, 20,000 diesel car- This is the 300SD, 
J • from 16 per • cent last ■nlacps where a diesaLrcan rentiv «1 mmm» than thns* nf a of them in export markets. of which 13.000 have been sold 

last places where a diesoltcan rently cleaner than those of a 
show Its best fuel economy. And petrol engine. It produces less 

only a carbon monoxide, unburned ■ ■ ■ ■ 

. -A? f- ““P 1 * « prenmgs * : :Mtre hydrocarbons and nitrous oxide DIESEL CAR SALES IN UK 

' -V' cheaper than petrol. It inflow- than a petrol engine and its 1978 . imt 

'-a- , .TO^ aoHownig erer tinted that some of .the fu e i u n « Much of ‘II® 

estimated 730,000 diesel-car the U S ^otor hwjustej’s iS- ^ 250+ 

* in . owners - in Germany --.may creasing Interest in diesels Ford 622 1500 

:i .- 1973, &nro:®e^e <*mb has occasionally be tempted tn;t6p 0M S^lcars ^rcedw *73 6004- 

. -.^conanrad. .Diestd cars now up their ta£ks from the domestic iV* 51255? fl}S S3 Peu *«* - ■» W 

-^.-account fOT an average » per central heating oil supply-^ ' year _ S^STn J “S3 '™ Volkswagen 7*5 1,000 



Of which 

Of which 













26,724 • 













4 S 





































2^73 J»6 








4 St 




























creasing interest in diesels — 
an estimated 100.000 diesel cars 

of which 13,000 have been sold Germany 2373,096 110,718 4.9 231631? 119,547 4.7 1,841,177 

exclusively in the U.S. Next year Beigium 472,987 19,872 AJt 415^)81 27^16 a* 303,921 

60 per cent of the Mercedes Holland 530,000 9,700 IS 549,602 18£0Q 33 408,175 

cars sent to the U-S- Will be Total A232A32 258,132 4.1 A59U18 335^05 5A 4,75^.980 

^.V™d e s P ™S,°tt 0 e“aiSei Ui .’• 751 - <85 *«« ww“ ^ 

as the answer to the problem * t Jaa^t. 

of meeting the 27.5 miles to the 
U.S. gallon fleet average corv- 

sumption requirement by 1985 to come it will be seen as one litre petrol engine made at the powered with 









Of which 









83,474 f 

Sour eg: Fial 

“ dieselised ” 

■ : stations in these Other than in respe'ctbf fuel wi?h whidi th7y U meetTurJwt 

i . -- -‘c .^Sve-maiiats. economy the diesel engine does wmen xney meet current 

.. diesens- tmitt advantage hot*^pare well with the afitn- l P d n 2 f i 

’ - . 4 >- : [over : a petrol engine as that it motive petrol engihe. Because addltional 

^;„f»fe9 &te fueTs energy more of its very high ‘ compression c ‘*“'P men '- . 

. ^^i.’efBcienay, e^ecially when the ratio— cocnmonly22 or23 to one ™ajor European car 

is based on the ease Volkswagen 7*5 

ch they meet current * first 11 months. 

t Forecast. 

s.fisfes fire tfueTs; energy more of its very high c 
-. '^^'efflmenfly, especially when fire ratio- — commonly 22 

with cars of their present size, of the most significant sutomo- jointly owned Feugeot'/Renault/ version of the O-series petrol 
Opel built 46,000 diesel- tivc developments of the Volvo plant at Douvrin, in engine recently introduced into 
engined Kekord and Astana decade. Although in the first northern France. the Princess 2 and Marina 1.7. 

cars in the first 10 months of nine months of this year 132,145 Britain has not competed in Others, from the Jaguar Rover 
this year, representing 4.5 per Golf diesels were manufactured, the -diesel race. Though a Triumph division, will have six- 
cent of production, and predicts there is a two-year waiting list pioneer in the early post World cylinder power units, possibly 
a higher diesel proportion next for the car in Germany and a War IT era with a Standard developed from the engines now 
year. huge unsatisfied demand in Vanguard diesel, our motor used in the Rover 2300 and 

Peugeot produced 179,204 export markets. VW/Audi is industry has shown little 2600. 
diesels last year nut of 808.955 now making just over 1.000 interest since With Cars' entry into the 

lin ear is lightly loaded. Thus in compared with, a petrol engine’s SjS,**??,. 
r;v. 4fievStop^brt conditions of city .7 to. 8.5:1— it has to. be more and Bntish Leyland 

•tiraffle, the diesel is -at its. best strongly made, which adds cost 

'and the petrol , engine- at its 



now has one or more diesel 
cars in its model range. 

worst. For example, the. Volks- equipment has to be made to . , ... , - r - - - „ . . . - 

wagen Golf diesel's urban cycle fine tolerances and costs several introduced a diesd version of block. Even smaller Fiat diesel 129,830 for the first 10 months small but growing numbers, a the Far East for use as taxis and 

consumption is a little over 60 times as much as the' ignition t“ e CX. three years ago. In the ears, including the successor to is slightly down in percentage five-cylinder diesel Audi 100. a Leyland diesel powers the 

miles per -gallon compared With system and carburettor' it P ast months it has made the current 127, can be ex- terms to ISi per cent, a side A six-cylinder diesel engine, *‘ dreadnought ’’ London -type 

54.000 CX diesels, representing pected. effect of introducing the new which VW uses in its LT light cab. 

- — - . . ■ ■ 48 per cent of total CX Ford of Europe added a 305 and boosting output of the commercial range, is also being But there has been a signifi- 

Diesel-engined versions of the a big 
new Fiat Ritmo are likely to year, 
appear in 1979 powered not by Pei 
the Sofim unit but by a diese 
*’ dieselised ” petrol engine cars. 

cars, which was 22 per cent of diesel units per day. including 

terest since. With BL Cars' entry into the 

A few hundred Morris Marina field. $ om e of the British motor 

Citroen, a relative newcomer, based on the 132 model cylinder output. This year's total of Golfs, the larger Passat and, in diesels have been exported to industry's indifference, even 

introduced a diesel version of block. Even smaller Fiat diesel 



48 per cent 

the Far East for use as ravis and antipathy, toward the diesel car 
a Leyland diesel powers the can be expected to disappear, 
“dreadnought’’ London -type Until now, it has always main- 
cab. tamed that any official encour- 

pected. effect of introducing the new which VW uses in its LT light cab. taioed that any official encour- :'.l 

Ford of Europe added a 305 and boosting output of the commercial range, is also being But there has been a signifi- age meat for the diesel car 

diesel car to its range at the 104 petrol-engined models. But supplied to Volvo for use in the cant change of heart in recent would have benefited only the T.'; 




Sales m the U3. 






share . 
3 JO 



v -^ 403 



' 2A2 . 




. 20329 



- 19.1 

Peqgeot - 








■ ■ ■— 


:V . 2.9 




The engtoe. basically a light end of last year — a Granada it sees the proportion climbing 260 series passenger car. 

truck unit, has recently been powered by an elderly Peugeot again next year when 
enlarged to 2* litres capacity 21 litre engine modified to response to political 
and mated with a five-speed meet Ford’s requirements. So environmental press 


Govern- importers. 

when “in Renault which some industry ment's proposal to replace the The market in diesel cars in ■[}_ 
tical and observers consider was taken by £50 annual car tax with higher Britain has been insignificant 
pressures.” surprise by the diesel rush in petrol duty has stimulated. BL The total this year will be an 

gearbox for easier, even more far, Ford has made 18,318 diesel diesel car output will rise and France, will launch its own Cars proposes to put an the estimated 3.700 registrations. 

some new models (including diesel car, probably toward the market 

diesel Next year, with the VW Golf ex-. ' 

accounts for 71 per cent of Granada output, a proportion VW/Audi is unquestionably on 

305 diesels) can be expected. end of 1979. It will- be based Princess in mid-1979. It will - pected to be in better supply. 

is .total production. 

five-door hatchback be powered by the 

Ford's Granada not strike-bound 

that is expected to increase, the pacemaker in dieseiisation. shell of the R20 and R30. In currently used in the Sherpa and BL Cars’ Princess making 

growth of between 5 and 10 per Unlike Fiat and Volkswagen, Its Golf diesel, powered by a spite of the Saviem connection, van and will be BL Cars’ only 

* Fint ll . months 

cent annually is forecast 
Fiat entered the diesel car 

Ford disclaims any interest in clever conversion of the 1.5 litre it will not be powered by the short-term foray into dieseL 
** diese lising ” engines for its petrol engine, has set a new 24 litre engine from the Sofim Longer term, there 

Saurea: Ward’s Automatic Vapott m a rket even more recently than smaller cars 'Such as the Erica, standard of economy, nerform- plant 

its appearance the market could 
more than double. What nap- :!; 
pens to it in future depends >£ 

Citroen but already lists seven a front-drive family car tbat ance and refinement. In years “ dieselised ” version of the 2- diesel cars. 

ambitious plans for a range of largely on government action 7 . 

be on fuel taxation. 


^ ; Tomorrow’s 

Letters to the Editor 


Labour Party National Exeen- 

Today’s Events 

Trust. Saddlers’ Hall. Gutter ft 
Lane. Cheapsidc, EC. 12. British 4* 

by microelectronics — the esseur as the start of a new era. general limitations, eg, 123456: border — but 1 may have Viking 
tial mechanical parts remain. Britain's inability to participate FC: AAD : for fleet cover, any origins! 

live meets in London to approve normal weekly hours (Novem- Industrial and General Industrial 
election manifesto. ^ er j Monthly index of average J™ 51 - 117 Old Broad Street, EC.73S 

Ktng Hussein of Jordan meets earnings (October). Construe- 230 Equity Inc. Trust. New"*; 

S. B. Marsh, 

STC House, 190 Slrand, WC2, 

. ..From the TecKmeal Directory ’ TTlo/»Hftnc in 3 cours e to prosperity. 

. Standard Telephones-end Cables JuICLllUllS 111 • Caracas papers however 

k Smalihora "VoYlATllpJa •' : l 00 JP°i lte to say so. 

.••■■~"fljeceniber 14) has .misread my VCUCZUcla. A. E. Forsyth. 

• to' the pocket caS from Ur. A. Forsyth . £. : 0«'nia tos PnmtaJ. 

• - - TL . fr*, Q . Sir,— I have read a report -of Ca! Ip Son Fernando, 

• viator. The point I was trying your paper ' S apparently rather Prados del Este, Caracas. . 

: ■• <{0 make was that, at the time patronising remarks (December 

if its inception, it could well 5) on the recent elections in DlCpC fflT PST 
iT^iave been judged .to be useless. Venezuela. • A-'Aawa iU * LaA 

* jjikiwy .has proved how: wrong Although the campaign was., rpoicfr^lfiori 

- h.7. ham - 

iirtj ■ KinM. hnw -/« « rr- * elections here were conaucted From me Cnatrman, 

" be M ^ QmtMCors. - 

- - viagmesit -based -on perceived Britain to ponder on. ‘ / Sir, --Commenting on my 

fully was noted— the mark of a authorised driver, together with e. E. Sunderland, 
weak and politically divided expiry date and vehicle regis- p flr fe House Coach Works, 
nation unable to chart and hold tration mark. A similar stamp Keighley, Yorkshire. 
a emmp tn nm<ov>rit\r Thn would be affixed to the policy 

Caracas pa£rs howver* were d J and franked wiUi dale What <517 P nf 
too polite to say so. ot issue. VYUill MZC Ui 

A. E. Forsyth. In succeeding years, the colour 

Quinta los Penates, o f tiie MoT stamp would indicate Cdldlc • 

Mr. James Callaghan, London. 

TUC General Council meets. 
Congress House. London. 

ton— new orders (October). 

Court, St. Swithin’s Lane, EC.m? 
2.45. London Investment Trust. 

Final dividends: BOC Inter- 96 Marsham Street, SW, 11. Long vfi 

In succeeding years, the colour « — 

of the MoT stamp would indicate CStlaXC. 
the year of test in contrast to the F Brigadier N. Chesskyre 
insurance stamp which could _. 

denote insurance category by Sir,-— I ^gree with Mr. See 

colour. By using alternate sides (Dec. la) that restaurants ought 
of the disc at each successive to offer drinkable wines 

of toe disc at each successive to offer drinkable wines in 
issue, a measure of continuity carafe form. He does not, how- 

CBI Council meets, Totblll national. Interim dividends: and Hambly, Winchester House. 

♦ AGB Research. Edbro (Hold- 100 Old Broad Street. EC, 11.30. 
-Z, n taiks on Greek entry into ings) _ Equity Consort Invest- Northern Industrial Improve- vag 
xStt® r, ?- se » M * xt ment Trust. Philip Harris ment Trust Blue House, Wash- ^ 

nuj national rally at Nottrng- (Holdings). Nova (Jersey) Knit, ington, Tyne and Wear. 10.30.-^ 
ham in support of provincial p e tbow Holdings. Radiant Metal Scottish Cities Investment Trust 
journalists strike. Finishing Company. Scottish and Winchester House. 100 Old Broad ia 

Conclusion of talks between Newcastle Breweries. Street. EC, 12. Wellco. Royal '^ 

Britain and -Argentina in Geneva COMPANY MEETINGS Westminster Hotel, 49 Bucking--^ 

on future of Falkland Islands. Armour Trust 37 Upper ham Palace Road. SW, 11.2S 

OFFICIAL STATISTICS Grosvenor Street W, 12. British Wemyss Investments, 4 MelvilIer-3$ 

Sir— I a°rep with Mr. Scott Newcastle Breweries. 

minht Bn ' am “4 ;^' n . tlna >■> OeneT. COMPANY MEETINGS 

on future of Falkland Islands. 

would be illustrated. 

In minor accidents it is not 
uncommon for the parties to 
exchange spurious information— 

ever, comment on the capacities 
of carafes. 

I believe -tbat most urine 
drinkers find that half a stan- 

rates of wages and Empire Securities and General Crescent Edinburgh, 12. 

- .Ruefulness (an be. .There was not the bittei 

■" i agree ewnpletely with Mr. ideological confrontation tc 
'rJSmailhoni; when, he ; warns which we ore accustomed. Thew 
. - 'febt too iapld abandonment S" “ 

ritain to ponder on. ' / Sit-Commenting on my letter t ]j e d j SC wou j d end sur h non- dartl bottle between two is not 
.There was not the bitter outlining proposals for vehirie sense an{ j WO uld save time for quite enough and that, 

ideological confrontation to dlsc | (November 29) both police and motorist alike similarly, three is a better 

which we ore accustomed. There f° h “ H? d ?. r . .... 

Jonn mup wider insurance, W herc toe constable is merely number than four to share a 

on ppcember - assumes wrongly satisfying himself that the whole bottle. In France carafes 

t ^ t « he d i sc WDUld supersede all vehicle is insured. Documents are r. enera ij v - available in i, l - 

existing docuin entail on. With could still be produC ed in court IZ tj £e sizes 

vra*p iwrmKcmn * liMle Tnftrl* , x am. J ilUC >uw. 

••••• TS^^tSSSSZ ZSM SrSShJTSTSSi is TirS'viz^ 16 “ *• 5 

■ strong ..public, disapproval of detail tor 1 a °clSrer PhmptoaVsimh shn”e Sad! >’ carafes in these spes 

- i So? »oVo n p d p rng yet e ohi P r^ voce*™ W^^**™* ^ 

The licence office issuing the wouId be adverse to proper law in this country, 
gistration mark would supply enforcement, indeed insurance (Brig.) N. H. L. Chesshyre, 

“ certainly true, policies and personalities. Both registration mark would supply en f orceTne nt indeed insurance 
- aspects of mechanical ■ main .parties sussed they, thecae bearing that mark; make. coro p 3n i es would be betterprb- 

r engmeering are not affected by would govern on behalf of all mod^l and colour printed on. a tectB(J frpni m maintained 
•_ -microelmnmics. Seiniconduc- the people. I do not recall the central band bn both sides of vehicles, the owner would be 
-tors'wiUnotcut orbend metaL concept- ,o£ "class" being the <Hsc. Tne manufacturers better protected from "casual" 
*■.' ^Bnt- they can and do have a referred to at alL And yet there wnt. would affix astarap to one sfi n’icing and toe police, relieved 
•': t ;trenmndou$ impact on the- was massive involvement on the ?^®« alJa Y£ * ““fr* 1 band - in ‘ of some tedious routine, would 

. . o — z • “ woj i u ojjivo uifvnrcuicut uu uiv jI-.a? - - — » ; 

- '.'wmtiol of such- intrinsically, part Of the people in the cam- be freer t0 taekle more V10 - Ient 

: mwbanipsil tvwaccds - ."-rra. ^ODfinusd MoT test standards, primp 

oiecliamcal processes. 

1 ..-'Many ostensibly all-mecha- 

1^*-+ < e The stamp should be of distinctive 

What Venezuela now has is mjA™. k---. MoT test certi- 

i eu,at • I j“ a * companies would be better pro- = Willi fie Id Way. A’WJI. 

mod& and colour printed on. a tected from ill maintained 

central band on both sides of vehicles, the owner would be 

the : disc. The manufacrorer’s bettEr prot ected from "casual" FllfC DCnSIOIl 

agent, would affix astamp to one se n’icing and the police, relieved f 

sme. above toe central band in- 0 f SDIOe tedious routine, would isetrkA/^C 
dicating toatpre detivery servic? be freer t0 tack]e more vio i ent 

ronfirmed MoT test standards. crilTie From Mr. A. Yadgaroff 

rhe Btamp should be of distinctive Macb more CO uld be written Sir.— As a speaker at the con- 

ccuoixr and bear: MoT test certi- t jj e f ore fsoLxsg should suffice ference on which Mr. Short 

’ ^ nical' products . contain an what Britain used to have— two tne toregoing suouiq sumce ierence on wmen w. anon 

-^ematofS^tiSiproreS large parlies, without major ?S L n ^^ a ti?n mark A based ^ article of December 

:.^and this element mSrS ideological differences the one SnSb? SSj^uldaSso be insulae togetoer wiJh id? feel 

regarded as replaceable by team being able to replace the fixed to. toe MoT certificate which the increase in fuel tax catching 1 ? p ? 1 ^ nrfJ 

tnioroelectronic techniques. A other when as a government it details toe tests. Both should be the Dreseiu licence dodgers, all ? at 11 wou5d J^ e be p ^ 

jood- example is one of the grew 'tired or incompetent In franked with date of issue. Sat Seed for toe future is future reporting you could 
-^^teabsewHi K .ma<tolnes-to^hk*ir«J^ ^cimistdnces British '-Wfli-lhte proof of roadworthi- awareness that precious oil eroP hasis ® pure pension 

LUdi we uccu AVI Ult AUAUAC -o „ m „hac!«P 

the awareness that precious oil 



'recognised that the- ,r-4rad . Venezuelan— "first-past- ness T . toe - Insurance company wiI1 rim out by tte year 2000— aspects of these schemes since 

?entiaHy - 'mechamcal_ . moye^.- .the-PbSt electoral system is could^afflx its stamp under toe a cold pr05 p ec t indeed — and the phrases reptive and tex 

mts are those of the needle .. appropriate. Where opposing worse if you consider all the im- baven are anathema to the 

d fabrin inner sc tb» mru vnartiPK nm Ktnippline from .tfie 4ii5c, The insurance stamp Tvliratinti*. superannuation funds office. 

uul fabric las. long as the con: parties iare struggling from plications. superannuation tunas otnee. 

stitching persists) and:nnnoritypositi(ras t to impose S^i^insurScPcompanybut Incidentally will Mr. Philip 
hal?fhe control of these move- their ideologies, it is not ^ , * 1 ^ an d y main p i ease note my name is Sunder- J™ en j. ofiundsonly remains m 

niaitst: to produce different The Venezuelan papers also insurance category “fully Ton! land as correctly spelt origin- the hands of the company if it 



The Company’s aim 
is to give stockholders 


% % 


long-term growth in 


28 Equities 92 

both income and 

Far East 

13 Fixed 8 



— A 

produce different' Th® Venezuelan papers 

insurance category “fully com- 


«wmg patterns is an informa- reported on the agreement prehensive. etc." It should be ally, not Sutherland— I am not 1S lhe tn *^ ec - 

uotL^p rocessing activity. This -reached on - the European overprinted with policy number a Scot much though I admire A. FT. ladgaroff. 

ictiiaty is. now being performed Monetary System, welcoming it with suffix letters to indicate that sturdy race on our northern 60, St. James's Street, SW1. 

-«}: . . — • ^ *‘~* . ■ ■ ■ ■■ . . w. - ■ 

Social costs of permanent inflation 

Pw^PfoJessor Dudley occurs, for whatever reason, this which velocity actually declined tools, and Canada is in the i.e.. the social costs of perma- 

Johnroii can be counteracted by an were Germany and Switzerland process of dismantling its price nent inflation. Nor am I able 

.. Siftr-jUr.' Golding (December appropriate, decrease in the rate butthe monetarist model would and wage controls. The com- to specify toe social costs 

5>;^rgfies "... that the weak- of change -ijv the money supply, have predicted this, because the parative rates of inflation do associated with anti-inflationary 

aessJbf the monetarists’ position Consider the simplest theory rates of inflation declined in the not indicate any important effect financial policy. But the social 
ls".thStthey believe that a rising of inflation— “ too. much money two countries. The rate of in- of these policies. On the con- costs of permanent inflation, it 

geh#raJ'Level of prices can only chasing too .few goods." . As flatibn is one determinant of trary, Germany and Switzerland, seems to me," “are constantly 

x brought about by an es- simplci as .this , is, this can ex- velocity and when it falls (actual with the fewest wage and price under-rated. 

tiie social costs of perma- 

31 October 
DIVIDEND per unit 
NET ASSETS per unit 

1978 1977 

£5.3m £4.4m +20% 

3.00p 2.56p +17% 

£11 6.4m £1 13.7m + 2% 
128-lp 123.1p + 4% 




?aambH, of the . money, plain rnflatiqn; if . given enough and/or expected), the cost of controls, have the lowest infla- 
mPRly ; V. -’’ but * ... all that t^me; but, as Mr. Golding points holding real money balances tion rates, 
s required is tfcat the jexisting shorter periods changes fails .theref ore the quantity 

nonftr . stock however defined, in -velocity, alternatively stated, d.em sided increases — Le. t 

controls, have the lowest infla- Fnlly anticipated inflation by 
tion rates. economic agents does not. 

Let me turn to the two ques- describe the historical expert- 
tions raised by Mr. Russell. I ence inflations. What we have 


A hreniates somewhat faster.” .changes in the amount of money velocity falls. This accuraula- believe that the only way to rather are erratic and uncertain 

Mr. RjifeeU ^(Decsembter‘5) ^tat^ - the public- wishes to bold lion of Mark and Swiss Franc eliminate inflation is to reduce rates of inflation,, accompanied 

I! thafcX’did not give an answer to (changes in the demand for balances has allowed Germany over time the rate of njonetary by spurts off anti-inflationary 

fl he question J[ raised earlier of money per unit of output), may and Switzerland to have sub- growth and the growth in the policies responding to political 

the unemployment cost o£ not cause prices to rise faster or stantially lower inflation ' rates Government. sector until price pressures after price movements ! 
beat&g ixmatian or H . . , tq toe . slower than .the difference be- loanee or Canada, with level stability is achieved. And have accelerated. And output! 

more-iiiiportant question of how ': tween the growth . rates 
to' -pfrivi§e a satisfactory : imlit iumey and -output. 
tian7against inflation.? Thn* .table* " (taken £ 

Tl^ 'research (theoretical and " Shadow European Ecqnt 

average rates of growth in out- it is crucial that this policy be and employment 

money and ^output. put';.; and money similar- to well publicised and fully under- adversely affected by such un- 

Tha table > (taken from Germany’s. stood if it is to be credible, anticipated inflation rates and 

" Shadow European Economic Also, the data shows unequivo- Currently, especially in the the vagaries of anti-inflation 

empirical) on the stability of ■ Policy Comniittee: Policy State- caily that the rate of inflation U:S., not only does toe informed policy, 
the tnuame velodty of money m«nt.- *nd Position' Papers." - ^ juog- ^ j ow vb ere the rate public not believe (with good a poi;™ of nermanent 

■ and: relative to-. , the May . 29^1. 3978. Graduate SSy growth ta high dr. ”w. reason T might add) in the iXtion to S actSl^woriS 

an-. multiplier., -is School of Management, Ce nter And. those who advocate some anti-inflation policies announced generates these in intermittent 

qns_v and- technical.- for. -Research a Government sort ofan incomes poticy, formal hy policy-makers, but feels that declincs j n output and increases 
fe^the best I -can offer Pphcy a^ Business, University or mformal, to. control inflation, they have not devetoped a , unemployment just like a 

‘dogmatic statement, of Rochester) is quite liluminat- should find the evidence. in toe Pohcy capable of slowmg the determ i ne d permanent anti- 

:inade more persuasive tog. It shows that the simple table of: interest. Britain has rate of inflation. inflationary policy does. But 

she -simple empirical theory -explains , -for most had some type of tocomes-policy I am obviously unable to tbe ] att er is a single-shot cost, 

lie income velocity of countoies the - average Tates ot f or years; France since 1945: give a specific estimate of social The former produces a repeated 

jncney-^tbe demand for money inflation Lot the past three- yearn Italy, has a complex set of con- costs of not beating inflation— stream of these costs distributed 

function 1 ^, an empirically, about as weU as one can expect over time 

Thus, a policy of permanent 

ns # 1 

The net asset value was at the highest level 
ever reported at a year end, largely due to 
strong Far East markets and a good relative 
performance in the US. 

The proposed increase in the dividend follows 
last year’s 25% increase, to make a 46% 
increase in two years. 

Exposure to the US dollar and the dollar 
premium has been reduced during the year by 
overseas borrowing. 

I functkra^-is an . empirically, about as well as one. can expect. 

ptable; - function, containing The calculation to column (3) _^£-. ■ 

.. specified economic shows the difference between *ore*-year average rates c 
e&r'so that past- changes the growth rate* in the money .... irom foun 

j^te t of growth of the supply "and the growth rate to 

.supply determine toe- real-output, -This, difference is «.„• >V a 

n rate— it is not an the expected or- predicted rate MluhtiT.- Mo ® e 

qdent . passive factor. that 'Of inflation. .if,. on the average. - ‘Jr' 

itically adjusts upward to there does hot occur any. r . ® 

I*the market an evqr in- ‘ changes ' in velocity during thq *: ■ - *}-J 

leasing flow of higher priced three-y earpenod. In column (4) t 

goods'- aijd' services, vtoether we see toe actual rate of m- r 1 r»“!“y 

.•ost-mauced or otherwise. Con- flatten for toe same period. The \ * n -. ri*2 

'•equeotly, there is no technical error?, which are relatively s •■■■- 

problem as to bow to end inffa-' small, .resulting from using toe. »J™«enana 

Ion: reduce toe rate of mono-' simple itheory are shown in 

from fourth quarter 1974 to 1977 

give a speeme esumaie oi social The former produces a repeated 
costs of not beating inflation stream of these costs distributed. 

over time. - . _ 

ge of money, output and prices Ard I might add that there 
ter 1974 to 1977 are other social costs associated 

Con- with permanent- inflation — mis- 

Real Implied sumer ailoention of resources, social 

lutpirt prlcest prices Error tensions, etc. Thus, in my 

(2) (3) (4) (5) opinion, the social costs of 

% % % % permanent inflation as expert* 

3.2 7.9 8.4 + 0.5 enced historically exceed those 

2.0* 9.5 9.9 . + 0.4 associated with a permanent 

2.6 8.3 4.4 — 3.9 anti-inflationary poticy. 

H 5 1 S'?4. t S’? Dudley W. Johnson, 

+ 2*i (Professor of Business Econo- 

£‘Z ,£■ I T mics and Sir John Cass Senior 

0.3 16^ li.7 +1.5 Research Fellow), 

Albyn Place, Edinburgh EH2 4NL. 
Telephone: 031-225 7781.. 

=arv growth,. And, to the extent . coliunn. ( 5). . - ... Industrial production, GNP not available. tGNP deflator. City of LondonJPolytechnic, 

t ra^oin^ increase ^..yeroci^ -^'^^'. only two' caimtries hfe- 4 Colnmsstl) - (2). Source: Federal Reserve Bank of St, Louis. S4, Moorgate, EC2. 

.“■3 atar 

-_1— !■_ _ > - m J 


... *<'**'?’ Zrs-tfaagr* 


Companies sad Markets 

Ffnanpial TiinesV Wedn^tay,- 


Granada at £34m: peak 
advertising revenue 

Asda advances by 26% 
in buoyant 

,V D/- . V '. 

1 profits 

by 55 







212 411 




6 012 











turnover show* 

PROFITS up from £25.15m la 
£34.02m before tax of £lS.l2m 
against £13.52ro are reported by 
the Granada Group for the year 
ended September 30, 1978, from 
turnover of £250. 16m compared 
with £212Alm previously. 

Earnings per share are shown 
at 12.59p (9.16p) and the Anal 
dividend is 1.4837p making 
2.6727p against 1.9453p. A one- 
for-four scrip issue in ordinary 
and “A” ordinary is also pro- 

Granada Television net adver- 
tising revenue was a record and 
continues to be buoyant, the 
directors say. Bingo social clubs 
and cinema profits increased by 
49 per cent while motorway 
services inert 
per cent. 


Dcprccuhon . 

1 meres l 

Pre-tax profit .. 


Exchange adjust. 

EAinsord. debits 

A split-up of 
tin £m ) TV rental UK £88 ( £82 ) 
and overseas £32 (24): 

television £64 (L'53i: bingo social 
clubs and cinemas £15 (£11 1; 
motorway services £30 (£23); 

properties £1.6 (£1.5 1; books and 
music publishing £S (£7). Other 
activities £11 (£10). 

An analysis of profit shows 
TV rental UK £17.9 (£13) and 
overseas £2 (£2.3); television £S 
(£6): bingo social clubs and 
cinemas £2.7 (£1.8); motorway 
services £1.3 (EQ.Si: properties 
£1.3 (£1.2); hooks and music 
publishing £0.7 (£0.7); olher 

activities • £0.1S (loss £0.15); 
group finance cosls £0.73 (£1.07). 

Ail companies showed 
improved results with the excep- 
tion of book publishing where 
trading was adversely affected 
by economic conditions in 
Australia and Mew Zealand. 

TV rental in the UK now has 
445 showrooms and 85 service 
depots. During the year the 
group re-sited 13 showrooms to 
better trading positions. The 
special services divisiun has 
extended its position as the 
major supplier to the hotel TV 
contract market and rental 
income has more than doubled in 
the last two years. 

In the year 2i showrooms were 
opened in Europe and Canada 
and the results are after charg- 
ing the cost of developing these 
new showrooms. Muva-Tel SA 
is now fully integrated with the 
original French business. 

Since June, the group has 
opened a further five showrooms' 
and now has 13S overseas. 

Turnover of the sub- 
sidiary. Baranquilla Investments, 
improved from £1.37m to £1.4m 

and profits were £818,000 against 
£811.000 * subject to tax of 
£435,000 (£433.000). 

Earnings per share are shown 
at £46.4p (45.Sp) and the final 
divideat is 21.3149p making a 
total of 34.7473p. 

See Lex 

to £2.4m 

PROFITS BEFORE tax of Plax- 
lon\s (Scarborough) amounted 
to £2. 42m for the year ended 
October 1. 197S. compared with 
£!.64m in the previous 57 weeks. 
Turnover was £19.99m. against 

First half profits had increased 
from £357,000 to £863,000 and the 
directors said then that the 
year’s profits were expected to 
show an advance on the previous 

Tax for llie year takes £748.000 
( £259,000 ) giving earnings per 
share of 28. Ip against 23.2p. 

FMC figures 
are on Page 27 

Comparisons are adjusted for 
deferred tax in line with 
SSAP 15. 

The final dividend is 3p 
making 4.75n compared with an 
equivalent 3.9p previously. The 
final is subject to Treasury 

Intnl. up 
to £44.2m 

Bank International rose £l.lui to 
£44.2ra for the year ended Sep- 
tember 30. 1978. 

The result was after charging 
for the first time depreciation on 
freehold and long leasehold pro- 
perties of £1.2m. and £7.9m 
(£7.1m) for exchange losses on 
working capital denominated in 
foreign currencies. » 

Share of profits attributable to 
the European division rose to 
22 per cent in 1977-78, largely as 
h result of exchange movements 
on the bank's Swiss investment. 

The North American and Far 
Eastern divisions contributed 14 
per cent to 6 per cent respec- 
tively. each substantially greater 
than the previous, year. 

Its Middle Eastern division 
maintained profit at about the 
-previous year’s^. level, whereas 
profits in the UK and Latin 
American divisions came under 
some pressure and accounted for 
IS per cent and 37 per cent res- 
pectively; the latter was also un- 
favourably affected by exchange 

Advances and other accounts 
increased 7,6 per cent from 
£2. 72m to £2. 92m, but interest 
margins narrowed. 




PRE-TAX profits of Diamond 
Stylus Company wont up from 
£58,419 to £80.116 in the six 
months to September 30, 1978. on 
turnover ubead from £606.5S2 to 
176S.400. Net after tax profit 
was £41.660, against £40,777. 

The directors say they are 
encouraged by trading results so 
far, and expect this trend to 
continue. Consolidated results 
for the whole of last year show 
pre-tax profits of £206,000 
(£121.000). Last year's profits 
were after charging £57.700 Loss 
for a subsidiary company, and 
£53,000 written off for goods 
supplied to Rowin SPRL, and 
after crediting £69,000 temporary 
employment subsidy. 

The half-year results include a 
temporary employment subsidy 
of £5.750 (£31.760) and small 
firms employment subsidy of 
£2,148 (nil). 

The interim dividend is 
0.2S37p net against an equivalent 
0.2541 p. The total last year was 
an equivalent 0.665p. 

WITH -BUOYANT trading in its 
operating .divisions Associated 
Dairies lifted taxable profit 26.1 
per cent ‘to £14.5m in the half 
year to October 28..1B7S. Sales by 
the group improved 28.6 per cent 
to £316.4m. 

Announcing this the directors 
said that the company’s offer for 
Allied Retailers, made in Novem- 
ber, is now unconditional. This 
means that a net final dividend 
of 4^p paid for tbe year 
to April' 28; 1979. taking the 
total to 5p, compared with an 
adjusted 0.64949p. The Treasury, 
as known, has stated that the 
group will not -be subject to divi- 
dend controls for the accounting 
period to the' end of 1979-80. 

The half year, results include 
26.5 per cent of the taxable pro- 
fit of Wades Departmental Stores, 
acquired in October, which were 
ahead 37.9 per cent from £443,000 
to £611,000 on sales up 37.7 per 

At the trading level the group 
surplus was 27.9 per cent higher 
at £13-5m. . 

Mr. Noel Stockdale, the chair- 

man, says that all divisions are 
performing satisfactorily in the 
face of increased competition; 
particularly Asda Superstores 
where significant gains - have 
been made in non-food- sales as 
well as in- fresh foods, and -basic 

Asda now holds a &5 .per cent 
share ' of the -national grocery 
market through its'67 stores. The 
directors anticipate that the 
share will continue to grow as 
further superstores are opened 
at the rate of five or six 'a yean 

In the six months four Asda.. 
Superstores were opened, adding 
more than 150.000 sq ft to net 
selling area. 

The group is stepping up its 
expansion into . the South. 
Another superstore will . be 
opened near Chelmsford before 
the end of the current year and 
others are scheduled to open in 
Reading, Swan ley and Waterloo- 
ville in 1979. 

Christmas shopping in the six 
trading days to December 23. is 
expected to help boost Asda’s 
weekly turnover above the £20m 

L5I - '.m : 

.2, -'--",'4^' 

' Cuirent - ^ : 

payment payment-’: fflv.- -ytiar*, /year - • 

: St - “ 

- ---- Haxlerwpods ,.... 1111 - : L65 - Jan. 16 D.9_ 

’Elect. & Gen.. i?iv, ...inti >Feb. l2 ‘ .0-65' 

first time, Mr -Northern Foods . $-2&> '•♦' -Jek . 2ff - L5JV- ' 

;... Plaxtons A r..i- -. ^Feb;.l?_ M* 

-- '■ . pjS , . (MSB * ■ - FeV-B’ 02&r". — - * - - 

• Reliable Properties ,1.51:V; Jan. 3* - •«**,_ 

.'.?A Record Ridgway .2.. ."NiK;.- — -' 3 

‘■T r Laurence 

Tex Abrasives . 

Dividends shown pence per share net eag^wlBre otoetwfeeitotedv- 
* Equivalent after allowthg;for 

increased by - rights and/or acquisition , issues.-/ f .SpeCiai-_Bl^3mr 

... 0 f o j 5 P declared as extra payment oat -dtlejxaptyxntf;. revesme; 

Profit, of Porvair,, maker. -. . - -v. v : - 

of microporous _ synthetic ■■ 
materials, rose to £465,000 in tile 
10 months to October 31 1978 on' 
turnover of £4.79m. - For the pre- 
vious 12 months the company,. a 
subsidiary of Tnm qnt UK, turned 
in a profit of £218,000 on: turn- . 
over of £6 J2m. . : ■ 

Credit was taken for group tax ' - 
relief of £4,713 in 1977, ancL hoi- 

rowings have been- reduced , , 

almosr £800,000 during ‘ 'ffiei' A FAILURE to meet the; planned at 2p. net-^he ; 
period. There is again no 'tax- t of output at the .Norwich; 3p.- ^ 

charge. Earnings per share- are '■ 0 f Laurence- Seott, electri: .After, a tax, cretm-.of :£^2,00Q 

shown as 2.6p (1.2p). . ; cal eouimnent maker; and : Mine ■ (£532,0(^ thaxge>.^i»e::,was'; % 

During the last year the; end nnP rofitab1e contracts, resulted in: half-yeariy n^.ffefiHf.eE £228^100: 
of the company's accounting ^ turm-ound from ar £i^J24,000 agmnst a «92jjqO>,pEffit 7 'Twt 

mark for the 
Stockdale says. 

■ SecLex 

up to 






Record Ridgway worse 
expected— omits final 

by Wilkins 
& Mitchell 

The Receiver has been called 
in to Wilkins and Mitchell's loss-, 
mo king Australian washing 
machine business. 

Wilkins, which manufactures 
the Servis washing machines and 
other domestic appliances, had 
been seeking either a partner or 
bidder for its Australian sub- 

Now a receiver has been 
appointed by the Australian and 
New Zealand Bank. As a result 
of this move Wilkins says it will 
provide provisions totalling 
£950,000 in its accounts for the 
year 197S. 

PROFITS BEFORE tax of Record 
Ridgway slumped from £2.41ra 
to £651,000 to the year ended 
October Z, 197S, and the direc- 
tors are omitting payment of a 
final dividend. 

Profits had dropped from 
£1.07m to £860,000 at midway and 
directors were saying that second 
half profis were likely to reflect 
the difficult trading conditions. 
However they expected pre-tax 
profits to be generally in line 
with the interim results. 

The Board bad intended to 
recommend a total dividend of 
4.85p for the year against 4.5p 
in the previous year. In the 
event they have left the payment 
at a single 2p interim. 

Earnings per share are shown 
at 8.21p <20.62p). 








Tradinn surplus .... 

..... 1,014 


Exceptional debit . 




Interest charges .... 



Profit before tax .... 


Ta* credit 


Net profit 



Etrhanqe lasses .... 



Extraord. profit .... 











t Debit. 

The capital investment pro- 

Sir Oliver Chesterton speaks of 

"maintaining an essentially 
flexible lending policy : 


Addressing shareholders at the 131st Annual 
General Meeting of the Woolwich Equitable 
BuiidingSociety; the Chairman, SirOliver Chesterton, 
referred to the Government's attempts to retard 
the rate of house price increases, and the building 
societies' agreement to restrict mortgage lending. 
“Generally speaking, our experience has been 
that increases have been less than the figures 
quoted in the Press," he said, “and we have 
continued our practice of maintaining an essentially 
flexible lending policy, enabling most people to 
buy the kind of home they want, and which they 
can afford." 

HOver the year our investors placed 
; with us the record sum of £836m, while their 
balances increased by £308m.H 

This increased flow of savings made it possible 
for the Society to lend some £40m a month to 
prospective home-buyers.The total of £482m for 
the year was a 37% increase on the previous 
year's £351m.This sum was represented by 
45,600 advances, 20%.more than last year. 

’ IIThe Society's total assets stood at 
some £2, 089m. 77 

This represented an increase of some 18% 
and reflected the growth in the number of investing 
and borrowing members, which is 
now over 1.6 million. At year end the 
General Reserve stood at over£73m, 
representing 3V6% of total assets, 
while liquid funds increased to some 
£365m, which is 17%% of total assets. 



London $£18 6AB 

Whe underlying demand for house 
purchase has been immensely strong. 77 

“Whether building societies will be able to 
continue to meet this demand is another matte/;” 
Sir Oliver warned. “Over the past year we have 
seen lending constrained, first by Government 
request, and more lately by reduced receipts from 
investors. It is questionable whether these 
constraints have made any impact on house prices 
because the underlying demand for house 
purchase has been immensely strong.” 

He went on to point out that with or without . 
artificial controls, the market level of prices - 
except in the shortterm - cannot go beyond 
people's ability and willingness to afford a certain 
price. “The higher mortgage rate will dampen 
demand, and because house prices have been 
largely ‘catching up’ after their sluggishness of the 
past two years I do not think they will rise next 
year by more than 15%.” 

TtlWorethan ever before, our business is 
concerned with people.77 

The Society employs some 2,200 staff. “It is 
their work," said Sir Oliver, "together with the efforts 
of our many agents and business connections, and 
the continuing support of our members, that has 
made this year's results possible." The 
Society’s main concern is with homes, 
providing the finance for its members 
to buy them, and offering one of the 
safest possible places for their 

Copies of the Annual Accounts of the Soaety and the full text of Sir Oliver Chesterton's address are availabtefrom the Secretary at the Society's Head Office. 

gramme announced last year is 
continuing with the exception of 
some expenditure which is not 
considered essentia! in the light 
of current trading conditions. 

The new grey Iron foundry 
costing almost £3m should be 
operational by early 1980 and 
this will considerably improve 
competitiveness over the next 
few years. Tbe £im development 
programme at Platts Forgings is 
now almost complete. 

The year to September 1979 
will be difficult but tbe Board 
is confident that the UK demand 
will at least be maintained and 
strenuous efforts are being made 
to increase the share of bath the 
UK and overseas markets. 

The action taken to reduce 
manning levels and expenses will 
have a beneficial effect on unit 
costs but profits during the year 
will be critically dependent on 
order intake. 

• comment 

Record Ridgway's share -price 
slumped 244p to a low for tbe 
year of 47 ip on news of its 
second-half loss. It recovered a 
little in later trading to close 
at 52p. The drastic market 
reappraisal follqws a major 
change in the company’s pros- 
pects. At the beginning of this 
year it confidently anticipated a - 
substantial increase in produc- 
tion and sales. In March this 
was altered slightly when it dis- 
closed that full-year profits would 
be of the order of .£2tn. At the 
half-way mark the figure was 
again revalued downwards to 
£I.7m. Throughout this period 
production was being geared up. 
In the first six months it was 
running 124 per cent above the 
previous year. It was linked to 
a sales plan which envisaged an 
increase in export order intake. 
But the projection proved 
ambitious, and in the second 
half production was cut back to 
levels existing last year. Stocks 
are down but sales margins have 
been squeezed by the fall in the 
U.S. dollar and by . the flat 
demand in the UK. Workers have 
been laid off and redundancy 
payments have affected ’ the 
figures. Platts Forging slumped 

period was changed from Decent p r r|flt to~a p re-tax. loss- of £465^006 L . d ends absori) ). 
her 31 to October 31. . -V ' f 0r the six months .tb' September TulT 7 year /^restfits. ^ VHH^Iake 

. . 30, 1978, including £196,000 account -pETrajatat^'anowaaces.. 

redundancy payments. add other factors. ' r -vv; “) 

At last September’s annual -• .^gSESSfo:. 

meeting, Mr. P. M. Tapscotfc the; .... . V-.,. ■' jgji: 

chairman, said that while* >■* Ttimoww Txfcoae. 1*710 

growth in turnover was exported, ^ ** ” S ™ , 

tiie first-half result^ would ^, ^ 

- substantially down. In tneT event,-. {.Ass.bafoir* '4SS>4 ?.oh 

• ' • t turnover rose 16 per cent to'" -Tax wwtt *532. 

. £l(.05m. - < njvktends - m -> tot . 

into losses and is not expected ■ He ?°. w ^ 

uktiKSriL • a useful profit for toe Mi year. 

£ P gS- elthougb at tins^ stage; :rt: looks 
1 p/c ui oj — consldecably -lower 

t Cftarge. 


Upsurge for 



ON TURNOVER down from 
£1 1.32m to £10.18m- Cooper 
Industries raised group pre-tar - 
profits from- £472,000 to £906,000^ 
in the half year to October ,31, ; 
1978. For the whole year to-AfriT 
30, 1978, group pre-tax profits- 
stood at £1.19m on turnover 
£24. 72m. 

to break even again 
The shares are on a „ ... 

expecting -any . . wh p Q the ^ of ^ recently: a-furtoer 200 redtoaamdes-^' 
4 announced redundancies at Noit- ..coine tois yeax at tofr'pxgeTvoisf- : 

wieh are taken into account. - : wieh plaitoineahi ttaLlaarence 
For tbe 1977-78 full year, tax- Scott has to earn arotiad^ £850,000- , 
able profits amounted to £2.45n;. . the. second half -jnat to; hreak_ 
Since September toe situation,^ even lor the. year, -as :a iwhole,’- 
at Manchester has -improved ,eo~i Witt the Norwich rate ofratput 
couragingly,; Mr. Tapscott stat^, . how hap i gbv tDy : and: five: , -fess- 
especially as a-resnh eff contracts , making - ;contracts ;f6r'^‘ control' 
for the coal industry in China-': gear; behind if there: i^-d, chance - 
At Norwich, the rate of output -that -it might; just he ftblei to 
of control gear is only now^res- • achieve tbat goaL It has i4 extra 
ponding to actions Implemented working days ih. the second-half 
but the demand far larger motors and the - Manchester lyorks^are 
shows tittle sign of revivisg. . benefiting -from the coal lndus- 
Good profits are, however,, com- try contracts in .China. ' Bajvtbe 
ing from toe remaindm: ortiie ; big problem' is,stiilthe;larg&ele&-; 
group. ;l : L -''.^tncal motors where* ojrder books 

At the trading level, .toe. cbm- aro t&to' aud .delivery tmied.'afe. 
pany achieved .- a - stirphiS .; trf down toraroand lS weeks. ^Ehe- 
_ , £87.000 compared with --flsain, remainder of. the group, is .oper- 

The directors say that Although before deprecjation./pflaatileas. . • atmk profitably.:. Assuming that 
the order position remains weak ing charges and interert; 5 . V .toe dividend remains unchanged 
toev hone they can maintain; Stated loss per 25p share was the shares,^wlnch eltised yester- 
the level >f activity. : > 2.37p (5.76p eaihings) and . the . day at RTfe' Jiavd a r prospective 

The interim dividend is rai^ed" interim dividend is maintained Field. of ;8^;per cent, . 
from 0.392p to Ofip and .it'iis ; 
anticipated the final will be 4,8p 
neL Last year the company paid 
a total of 0.792p. -.v-'-.v 

After bis statement In tbe 
interim report . • Mr. .Robert -B- 
Foster, chairman of F. H. Lloyd 
Holdings, announces that Cooper 
Industries will jointly participate 
in the proposed venture to 
develop a new mini-mill- at 
James Bridge. • 

Si* month* 

1978 1977 

£O0O £000 

Tumowr 10.183 11,323 

Ptofit before lax 906 472 

Associated companies 373 213 

Tax® 632 372 

Net profit &£7 314 

Extraordinary credits... * 209 — 

Dividends 165 123 

’ Tax for six months ended October 
31. 1978. and 1977 subject to any stock 
relief claims made an annual accounts 


Tern -Consulate’s ' rights issue 
has been taken up as to 90.3 per 
cent. The balance has been sold 
in the market. Net proceeds of 
toe sale, amounting to 4.2Sp per 
share, will be distributed to 
entitled shareholders. 


INSTRUMENTS — Sales £1.523,797 
(£1.199.205)(cr six months to Saptsm- 
bar 30. 1978. Pre-tax profit £132,829 
(£142.347) after depreciation C43.077 
(E40.060). but includes interest 
receivable £13.001 (£14.310). Tax 

£6,415 (£71,174). Chairman says that 
it ia expected that profits lor the year 
will be similar to those achieved last 

Results for year to September 30. 1978. 
already reported. Advances and other 
accounts. £8.86bn (£7.99bn). Cash and 
short-term lends. £2-18bn (£2.7bn). 

Deposits and currant accounts, £l0.77bn 

BELL AND SIME (timber importer and 
sawmilier) — Sales lor half-year to Octo- 
ber 31. 1978, £2.131.000 (£1,823,000). 
Profit £83,590 (£81,512). before tax 
£42,000 (£42.400). Interim dividend 
0.B7&P (same). Sales In opening weeks 
of second half reasonably well main- 
tainad, and if this level or dem&nd 
continues, results for Tulf year should 
show an improvement on 1377-78. 

HOLDINGS— For first half 1978 pre-tax 
profit £75,259 (£31.022); tax £27.674 
(£14,607); net profit 047,595 (£16,4151; 
surplus on sale or investments, less 
tax. transferred to capital reserve 
£54.824 (£52,380). Earnings per 5p 
share 1.699p (0.586p). Wholly-owned 
subsidiaries' results not includad; 
turnover E67;482 (£179.530); pre-tax 

profit £3.733 (£145.222); tax nil 

(£40,000); eaminga par share 0.1 33p 

for year to September 30. 1978. already 
known. Fixed assets, £6.19m (£5. 12ml. 
Net current assets. £5. 72m (£5.43m1. 
Meeting. Doncaster. January 18 at 
11 am. 

profit far six months to November 30. 
1978 £141,438 (£120.910) after all 

charges Including tax of £85.504 
(£84.061). NAV 42.09p (38.61 o). 

Interim I .SOp (f ,35p). 

M.Y. DART— Chairman tofd AGM 
that sales and profits for- half year 
ended December likely to exceed pre- 
vious year. With only few exceptions 
order books satisfactory. New products 
being devised and will be marketed 
next year, enabling growth and profit- 
ability to continue. Group now wed 
established in North America and 
Canada, end had been looking at- a 
number of possible eouisitions. 

Income £512,334 (£398,817) for six 
months to November 30, 1978. intorast 
charaes and a wpenaes . £139,896 
f Cl ©,632). Tax £145.342 f£84.0«). 
Earnings par share 1.26p |0.82p). Net 
0.66p (same). Also recommended 
special dividend ol Q.l5o as sn extra 
payment out ol exceptional revenue 

received during priod. Anticipated that 
final will be maintained. 

— Results for September 2, 1978 vear 
reported November 28 in full preliminary 
statement. On CCA basis, historical 
pre-tax profit, CS.Ofim. reduced io 
C6.1m. Group fixed assets. E23.58m 
fOa.39m). net Currant assets. £20 42m 
I £17. 04m). Funds decreased by 

£188.000 (E106.EXM increase). Chairman 
has every confidence, thot over longer 
term, qroup's rate of expension will "be 
at least comparable with pest perlorm- 
ance. Meeting. Leeds. January 10. 

(processor of vegetables and maker of 
sauces and condiments) — Interim 
dividend 1.65p net (1.5p). Turnover tor 
half year to September 30. 1978 

C3.S1.000 (£2.238,000). Pre-tax profit 
£204,000 (£206.000). Tax £3.000 

(£86,000). Debit extraordinary item nil 
(£29.000). Earn Inna per share 7.1 9p 
(3.61p) and fufly diluted 4.71p (2.36p). 

party dealers) — Turnover £78,159 
I £73.450) for six months to November 
30. 1978. Profit £11.684 (E7.200) before 
tax E3.650 (£1,800). Expenses relating 
to offer by Janth £3.170 (nil). Profit 
attributable £4.864 (£5.400). Earnings 
par share before exceptional Item 0.8p 
<0.54p). Janth fait (hat in order to 
continue expansion of company a 
rights issue would be necessary. This 
remains under active consideration and 
expected that full details will be 
despatched early In the New Year. - 

Results far year to September 29. 1S78. 
reported December 13. Fixed assets. 
£26. 8m (E!7.9m1. Net current assets, 
£29 23m ■ (£25 96m). Total funds 
aonerAied. £1 .07m (£7 24m absorbed). 
Current year started with more en- 
couraging order booh and some 
improvement in results should be seen. 
Maetmg. Quaglmo's. SW, January 18 
at noon. 

l.507Sp (nil) for year ro June 30. 197B. 
Profit £284.415 (£129.160/ after tax. 


-V: .• -i£i;i"~ M;:1 T E D 

A substantiaf step 
in turnover 
and prdfit. 

The 45th Annual General lyAelmg of Si ^impson Limited was, 
heldonl9th December inLimdbn, Dr.S.L. Simpson, ; . 
Chairman presiding. 7 Tie folld&ing ate extracts from his 
circulated statement.- . "... ; " 

Thkyear:! am pleased again toteatietoreporta • ; . 

cover a wide area of the globe and are based on the high. . • i= 
q uaiity and presti ge of DAKS clo tomg.- Tie DAKS-^Hnpson ^ 
manufacturing companies^ fgr botfitoen r s and women’s! wear. 

in recent years of well over £1 miUiotfda new plantand . 
equipment. Our DAKSclothing for men and women covers -a . 
wide range of styles for all occasions intown and country. We * 
are also recognised as sports’ and spectatorsports’ fashion 
leadersboth at home and toEu rope and ace extending-this . 
message to the Far East and other parts oftbeworid. 

-Xhe DAKS/Bemard WeatheriU project is now established ^ v 
and making good progress .^n support of this Sinipspn 
(Piccadilly) Ltd has recently. opeoed a new de^rtment for - 

DAKS-Simpson Ltd. at-majorHoiste Shows.' 

discriminating customers, including many overseas visitors. 

Shops,.which are especially attractive to .the younger^ 

Trend Shop was complete^ red^gn^and-officia^y open^ m 
May ai a DAKS Corner Shop, ThisI^ prpyedOf griatt ^ ; ; ! 
interest to overseas visitors.^ ; ' ■/ - • , ; . ■ : 1 t 

busi nessin the U-^A. and in Europe. 7 . f ' .7 v- 

• MysTncerethanks, aS'Chairinaiijare duetoalJmy;*^. 1 - 
cqUeaguM ontoe Boards, and to Managernenfeand Staff of all 




52 CorahiU 6C3 3RD 
Gilt Edged Portfolio Management 
Service Index 19.12.78 
Portfolio I Income Offer IT .12 

Bid 81.78 

Portfolio II Capital Offer 131.18 

Bid 131.12 



■ . o.f their: .. r; - ' ; v*--'::- 1 : 

, FOR.THE UK : : 

>' .1“ -I 

' - V5Si; 

" • — . •* , - »-» . 4 V ar.- , ■J-V-S- 

1 >< 


! - • 
■| ■: ■ 


t.'-r •' 








Northern Foods lift 
to record £22.4m 


<iS ^EXPECTED. ..there ... -was . . ...... - ~ , FOLLOWING HIGHER mivvay 

& >rew4b n the-Mcond six rati*.:. BOARD MEETINGS- - P toflts oi nosrm against 

... ! -^r WestiiisboascBraJte and iSm ^SSSi? iSTmii. £7.04m, Northern Foods finished 

^-4* ; at Company leavi^lawbte pro- A ^ September 30, 1978 vear 

... -2 '1 for the year, to September 30, stock •Excheogp. such mooting*. «& ahead from £17 91 ra to a record 

-STS, ahead £637.000 to a record ‘““‘“j' Wd ^ £22.4m. on turnover un £70 32m 

• *• ol &.s&? mmr up £70J - ra 

■..-•/> .$.urTenuy subject . tq . .an agreed dande »■» mwiiDt o* rtnoi*. ; a*«r it*a 
4(t^m. tafceover bid. from Haw- sub-diviamnx •hewn bofow .ora:iw«*d 

{-..fer Si (Holey, nt .half-time re- 
fc-'orted a maintained surplus of 
'SSira,; against £2.57*1, and tbe 
trectora said that the -first half 
k ad been adversely affected^ by 
roblems associated with .new 
involved in majorre-shap^ 
f foundry facilities, 
addition improved trad-, 
profit und -ot&er.iucoine- of. 
5.31m .(£52)1») the share froth 
ssoci&ted -companies , was up 
-am" £2LS5m to £2.I7m for the 
1 months. After tax of £1.79m 
- . EL55m) earnings per 25p share 

7. ' merged at lQAp, compared with 

~-5p last time. The total netdivW 
ZL '\ .*■*„. PPd is raised to . 2.3753p 
,, ^2.12724 d) with the second in? 

■ - ' ■ =tr.- .2® !ri 

mainly on iW yttf-j rinwiabja- 
. TODAY : 

Interi m* A GB '■ JMiidl, - Dank* 
OlMWtM. fefbra. Equh? Con&BrT 
lamimciii Trim. PMlp HanhK. ''Nova 
. {Jmavv. Knitwear, f’otbow; .Radiant 
Mo lAf, Finishing. Scettith and (fawcufis 

Smrtriif. ■ 

Ftaih — SOC International. 


The full year figures include 
seven months' trading of Pork 
Farms, less an adjustment for 
the servicing cost of the cash 
element of the purchase consider- 

.Rond Snoot flbiln *. 

Demhorjt and Partner Jon.19 

Midland Industrial . ' JaiK-.11 

.ftaah -fj. P_| Jov/:£ 

amounting to. £0-94m <£0A2m 
gain) were dealt with in reserves. 

Inferred - tax has- hem. ad- 
justed in line' with ~SSAP 15. 

1977-78 1978-77 - 
. £000 CO® 

5ate«.._ - £8jt3 67.961- 

- 5.018 


organisation and a £120J)0Q 

Trading and other inc.. 


Associate* - T 

-‘ 2.175 

Wer interest 


Pro-tax profit 


UK wk .... .: 


.. Ovaraeas tax- 


Associates tax 

. 718 

. Not prolit - 


Minority iniamsu 

- Exiraord. debits 



4 jm\ 

First interim div 


Second interim 


‘ 505 
‘ IS 


- 553 

Current trading is running 
satisfactorily ahead of last 
year’s same period, but first half 
results are unlikely to be signifi- 
cantly more than last year’s cor- 
responding half which included 
certain material non-recurring 
items, say the directors. 

Substantial capital expenditure 
is in hand to provide increased 
capacity in dairy, baking and 
meat products factories, and the 
benefits from these investments 
will continue to ensure signifi- 
cant orgavic growth, they add. 

Stated earnings are higher at 
)3p (U.79p adjusted) basic, and 
1 1 .96p ( 10.85p adjusted ) f ull y 
diluted. As forecast a final divi- 
dend of 2.25p effectively raises 
the total from 2.214p to 3.75p net 
— the Treasury has indicated that 
consent will be forthcoming for 
this payment 

pTex Abrasives depressed 
in first six months 


- •' - injr -N INCREASE of £0J.9m in to- maintain profits, the directors 

- Joules to £2.64m was riot enough comment • 

' -.r- i/'x* cover -the Tall- in margins at The second half has started 
• ilex Abrasives, in the half : year well and if, as is hoped, Guspar- 

i.;- •zf’jr September 30, 1978,- caused by -formance continues the profit for 
: fall . in . value of ^sterling this period should beasgoodas 
Against -the Deutsche Mark and last time. It is not expected, 

. . ■ -! ' fieneral inwasp. in luaop hnwwar 4-ha 4nx tho 


Trading profit 


Investment income ... 

Interest payablo 

From British Credit Tat 
Share of aasoc. profits 

Profit befora tax 


Net profit 

To minorities 

Extraord. Credits 

Prof, dividends 

Attributable to ord. ... 

Ord. dividends 

Retained profit 

" Dividend, t Profit. 

Year Year 
1977 -78 1976-77 
£000 C00O 
302.637 232.315 
25.931 19.639 

Freddie .Vtnuitfid 















tl .476 




Mr. Nicholas Horsley, chairman of Northern Foods, photo- 
graphed on the high speed milk bottling line at the. company's 
Hull Dairy. 

The directors report that 
despite some reduction io volume 
sales of liquid milk, a modest 
profit increase was achieved at 
Northern Dairies. 

At Dale Farm Foods, increased 
demand for manufactured dairy 
products resulted in satisfactory 
growth, while poo r milk sales 

efficiency resulted in a significant 
uplift for Park Cakes, and 
buoyant sales and increased 
market share produced outstand- 
ing results at Fox's Biscuits. 

North Country Breweries was 
affected by poor summer 
weather which resulted in re- 
duced sales and static profits. 

: .down' from. .£228,712 to shown at the pre-tax level! 

r ~.-S>17fcl26. - With tax taking £79314 

■ Industrial unrest and short ( £108,733) half year surplus 
^ '-■.-^jne workmg throughout a great emerged at £90.312, compared 
.. -^L r-urnber of industries and hence with £121.979. TOe net Interim 
■ 'In Subcontractors also contributed dividend is held at 0.75p. - Last 
- ::7--ithe lack of ®owth necessary year’s final was 2^7234p. 

year and eomparativa tan charge has 
been restated accordingly. $ Debits. 


Increased sales and improved 

See Lex 

Plysu 45% first half upsurge 


Yearlings up to llf% 

..;>Tbe .coupon rate on this raised £$m by the issue of 12} 
-peek’s batch of local authority per cent bonds dated December 
earling bonds has been-stepped* 17 1980. : 

p from 111 per cent tn‘ll$ per ■■ ’i... 

snt The bonds are issued; at n Trt ,Tc nrcriT TC 1 
r and dated January.2 1980. .. RIGHTS RESULTS-’- \ 

WITH sales up 17 per cent in 
the 2S weeks to October 13, 1978. 
Plysn, manufacturer of plastic 
containers and domestic wares, 
reports a 45 per cent increase 
in pre-tax profits from £456,000 
to £660.000. 

The directors explain that to 
a large extent -this reflects a 
much improved level' of 
efficiency which steins from tbe 
investment policy of the last few 

They add that the pattern of 
rogress has continued well into 

le wissqes * are:'” London 4 . Aitotal of 781 shareholders out $he third quarter and there is 
or^miingd&n (£lm), "of 2,136? in"*^gmrt ‘ - 

gmiifoe -Br'tma*’ ’e^ery -teason tt look forward to 
, , ,,. { j 0 Udan. Borough of Hounslow . have elected to receive new a good full term result. Profits 
L 1 lll '£lm), Strathclyde Regional shares in lieu of a cash dividend for the last full year -amounted {-ilnrTf-City of Newcastle for the. year ended July 197S. 
jpon Tyne (£jm). Royal Borough Accordingly, 244,135 have barm 
>f Windsor and Maidenhead issued— accounting for 65.36 per 

cent . cf the dividend. 

Charles .Clifford recent rights 

to tbe profit earned in this divi- 

The company will take delivery 
of machinery in the new year to 
increase further capacity for 
5-litre bottles, and additional 
equipment for the manufacture 
of 25-litre containers will also 
be in production very shortly. 
This’ will help to maintain the 
hieli standard of service to cus- 
tomers that has been achieved 
over the past few months, he 

The improvement in house- 
wares sales has continued with 
the. result that profits from This 
activity have been restored to an 
acceptable level. 

11.4 per cent from £5 .92m to 
£6.6m and profits were subject to 
tax of £3.969 1I2.G20 credit). There 
was an extraordinary debit, last- 
time, of £35,289 which was the loss 
on disposal of freehold property. 

The single dividend payment it 
Increased to l.Sp net per lOp share 
compared with i.5075p. 

Alex. Lawrie 
Factors up 
44 % to £lm 

Puerto Rico rejects 
Kennecott copper plan 


THE Puerto Rican Government 
has rejected a proposal by Am ax 
and Kennecott Copper to develop 
the big but low-grade Adjuntas 
copper ore deposits in the moun- 
tains of Utado Lares. 

Mr. Carlos Romero Barcelo, 
Governor of the island, said that 
if the two companies do not come 
up with acceptable proposals 
during the next six months other 
mining concerns will be invited 
to hid for the exploitation rights. 

Am ax and Kennecott sub- 

mitted their proposal to build a 
mine mill and smelter complex 
that would produce 50.000 tons 
of copper annually over a 30- 
j-ear period in September 1977. 
They have been prospecting the 
area for over 12 years. 

The project would cost S3S0m 
(£190ml initially and the total 
investment would rise to about 
$5 60 m as all three of the 
deposits, contiguous ore bodies 
are developed. Reserves are 
estimated to be 243m tons with 


an average copper grade 
about 0.73 per vent copper. 

The Government and the com- 
panies are believed to be in 
disagreement over the royalties 
and taxes the Government should 
receive, fnitialiy it had been 
determined that the project 
would pay a royalty of between 
2 per cent and 3 per cent and 
that it would be exempt from 
taxes for the first 15 years. The 
Government argued that this was 
too small. 

Dundonian’s Cornwall venture 

THE UK-based Dnndonian group 
reports that following the 
successful completion of its West 
Country exploration programme 
for tin and tungsten the com- 
pany's consultants are of the 
opinion that “it is not unreason- 
able to foresee the possibility of 
a medium-to large-scale mining 
venture which may be equal to, 
or of greater scale than, any 
presently in operation in Corn- 

Interest centres on a six square 
square mile area near Callington 
which has supported mining 
operations in the past, notably at 
the Redmoor and Kellybray 
properties. Tbe ore contains tin 
and tungsten, roughly in the 
ratio of two parts tin to one 
part tungsten. 

This was a disadvantage in the 
old mining days because it was 
difficult to separate the two 
metals and the tungsten, for 
wheb there was little market, 
was regarded as a contaminant 
Nowadays, the tungsten is a 
valuable by-product and Dun- 
donian anticipates no major 
metallurgical problems. 

Exploration has indicated a 
western extension of tbe known 
lodes and Dun donian intends to 
start pilot-scale operations next 
year. The sze of the deposit is 
not yef known but tbe indicated 
average grade is a good 1.4 per 
cent combined tin and tungsten. 
It is hoped to reach full scale 
production in two to three 
years’ time, possibly at a milling 
rate of between 600 and 800 tons 
per day. 

The cost of such an operation 
would be in the region of £5m 
and Dnndonian is having talks 
with possible partners. Mean- 
while the company’s wholly- 
owned subsidiary. South West 
Consolidated Minerals has raised 
£240,000 by tbe issue of 120,000 

new shares— equal to S per cent 
of the existing capital — to 
Burma Mines. 

During the year to March 31, 
1981, Dundnnian has the right 
to re-acquire the Burma holding 
in SWCM for 360,000 shares of 
Dundonian. Based on the in- 
vestment of £240,000, it is 
pointed out tbat the right to con- 
vert is at an effective price of 
66 3 p per Dundonian share. The 
latter were S2p yesterday. 

0 Billiton UK, a unit of the 
Royal Dutch Shell group's metals 
arm, is having talks with Corn- 
wall Tin and Mining about the 
purchase of equipment from the 
failed Mount Wellington tin 
mine, near Truro in Cornwall. 
Billing ton plans to use the equip- 
ment together wilh its nearby 
Hydraulic Tin operation to pro- 
duce tin concentrates from tail- 
ings. Billiton is not interested in 
buying the mine where pumping 

will continue while Mr. Robert 
Sprinkel seeks a package to 
rescue the adjacent Wheal Jane 
tin mine. 


Tiie Consolidated Gold Fields 
group's U.S. Azcon Corporation 
has signed an agreement for the 
sale of its Rich Steel division in 
Los Angeles to JIODAP, Inc. of 
Los Angeles. California. The 
sale becomes effective on 
January 1. 1979. 

MODAP intends to change its 
name to Rich Steel Company 
and to continue the Rich 
operation unchanged. Rich Steel 
is a service centre dealing 
primarily with fiat -roiled sieel. 
Azcon is a distributor and pro- 
cessor of steel as well as n manu- 
facturer of speciality industrial 

County and 
District ahead 
in first half 

IAS Carso 

£lm finance 

Profits before tax of Counly 
and District Properties rose 
from £24S.DOO to £292.000 in the 
six months ended September 30. 
1978 and further improvement is 
expected in the second half. 
Earnings per share are 2.6Sp 
against 2.26p. 

Tbe interim dividend is lifted 
from 0.4356p to 0.4 8642 p — the 
financial position is very strong 
and it is intended to recommend 
a substantial rise in the total 
for the year as legislation per- 
mits, the directors say. Last 
year’s total was 0.877Sp. 

Further progress has been 
made on proposed developments 

IAS Cargo Airlines is raising 
£lm through the issue of Ira 
6 per cent cumulative convertible 
£1 preference shares at par. 

Mr. Dennis Barkway's company 
Energy Finance and General 
Trust is arranging ilie offer for 
The chairman and h is wife will 
he making available for placing 
357.143 ordinary shares at 70p 
Tbe prospectus contains a fore- 
cast of a minimum profit of £lm 
after tax for the year ending 
March 31. 197D. And Die directors 
expect to recommend a dividend 
of net for the current year. 

The preference shares are con- 
vertible into ordinary during 
1979 to 1985 at an effective price 
of 70p per ordinary share. 

£■% Wansbeck --District Coot 

Oldniidi SSf-J 1 (£ini ),_City_of. Salford (£* ra ) . 

to £750.000. 

The net interim dividend is 
raised from 0.5429p to 6.6786p; 
last year’s final was 0B407p. 

Mr. C. S. J. Summerlin, chair- 

'd In turnout, 
id orofit 

Daventry District Council filth),' Issue; of 440,000' shares has been - mail, commenting on first half 
'**• — r 1 *• •'» — fully taken up. — — ~ - 



Pre-tax profits of Alex. Lawrie 
Factors, a wholly-owned sub- 
sidiary of Lloyd:- and Scottish. 

pity of Edinburgh District Conn 
” (aim), City of Leeds (£}m). 
lily of Salford (£}in), Daventry 
3f strict Council Brent- 

wood District Council : (£Jra); 
London Borough of Havering 
film), Dudley Metropolitan 
Borough Council , (£fm). North 
. ^Bedfordshire Borough ' Council 
... (f Jra)-.. 

■* Ogwr District .Council has 


' Portsmouth based brewery, 
George Gale, is proposing to 
reorganise its capital — splitting 
its £10 shares to £L There will 
also be a scrip issue of one 
ordinary and 8 new “A" shares 
for every ordinary. 

figures says a steady increase 
in demand for 5-litre bottles 
apd 25-litre containers helped 
to- ' offset the depressing 
effects .of another cold, sum- 
mer. - on the - soft drinks 
industry. Sales of smaller bottles 
would have been much higher 
if the weather had been more 
favourable, and would have 
brought' a distinct improvement 

The directors of Delson and 
Company, nut and bolt manufac- 
turer. announce tasable profits 
recovered from a depressed 
£33,084 to £102.255 for the year to 
July 31. J97S, amt compares with 
their Interim forecast, in excess 
of £75.000 for the year— nro fits 
had fallen from a record £389.989 
to £130.349 inn 1975/76. 

Turnover for the year was up 


rose 44 per cent 'rom £697,543 
to a peak £1,004.361 for.lhe year 
to September 30, JS7S. ’ 

During the year, a record 
£129.2in of debts were factored 
—a 31 per cent increase over the 
previous year’s £9S.4m. 

Mr. Malcolm Smith, managing 
director, says the company is 
currently examining new areas 
c-f expansion • to bruaden 'ils 
range of facilities offered to' 

After tax of £537.200 against 
£357,244. attributab'" profits 
increased from £340.299 to 
£-*•67.161. of which £465.258 
i £318.632 1 has been dealt with in 
the bolding company’s accounts. 

-- ’ K .>. 1 


Unicorp now has 29% of CCPC 

Avana Group 
forges ahead 


' - Onion Corporation, ■ the South ” prime opportunity ” for expan d- 

- African mining ■ finance ; house, . iag its. insurance broking opera-; 
. -v-f-iias. bought an additional 2.83m tions, particularly in America, 

„ uv Capital and ". County 

'-■.Property Company, taking its 
-.-".'Rake to just over -29 per- amt 

Mr. Dennis . Marler, ' the 
_. . property ; groups 
director, • said last 
-fie ‘ welcomed the increase, in. 


.The merger is not being 
referred to tbe Monopolies Com- 

company in which Mr. Weiss is 
interested, has sold 3,500, 6J per 
cent cumulative preference 


Arcnson (Holdings) — Mr, 


Constructors John Brown is 

to take fuU control of CXJB _ . _ . 

- n w? 8B L° * Underwater Engineers, from the J. B. Sacks, a director, and his 
. . , _ tll ? t end of this year.- .The under- wife have sold some of their 

. - rj„. . the Lncrease in water engineering concern was shares. Mr. Sacks’ beneficial 

” formerly jointly-owned by Con- holding has now been reduced 

■ te structors John Brown and from. 300,605 (6.4S per cent) 

..-. .me 30 per cent needed to trigger riirmw <:a 

- a bid, M*. Marler (whose chaire comex ^ 

„ " man at CCPC ■ is Mr. Keith T -’ '- 

Wallis, and the Unicorp senior ' TURNER CURZON 
..gttish director) believe -that - ^ offer by S . and W. Beris- 

.*:• tSJSSThM ford- for- the ordinary capital of 
..^making a full-scale takeover bid, Tm-m^- Curwra ■ has been 

He said that: . ** L know : it. has extended until January 8. 

‘ been their intention for some Acceptances have been received 
.. v.'-.dme to increase their holding in respect of 16,527,964 shares in 

- U P to the point, just before they Turner Curzon, representing 

would have to extend a general 76.05 per cent of the ordinary nary shares. The Weiss Gronp, a ing £319,000 deferred tax. 

- ' offer.” And he sees the. additional - 

'purchases . as, “ very welcome 

ordinary shapes to 240,605 (5.19 

Hambros Investment . Trust — A 
subsidiary of Hambros, has pur- 
chased 50,000 ordinary shares. 
As a result, Hambros and its 
subsidiary are beneficially 
interested in 2,945,250 shares 
UL04 per cent). 

-Foseco Mlnsep— Mr. E. Weiss, 
a director, has sold 50,000 ordi- 


Aaronson Bros^ the plastic 
laminates and wood . veneer 
group, has bought Melinate pro- 
ducts, wrich supplies laminates 
and foil surfacing chipboard «o 
the shop fitting and building 
industries, for an initial con- 
sideration of £750,000 cash. 

A further payment may be 
required depending upon 
Melinate’s profits performance 
during the next three years. In 
the year to April 30. 1978, tbe 
group earned pre-tax profits of 
£350,000. At tbat date net assets 
were said to be £875,000— includ- 

Tbe Christmas trading period 
vril! exceed all forecasts at Avaoa 
Group, the cake, baker;/ and con- 
fectionery which is a large sup- 
plier to Marks and Spencer. 

All areas of tbe business con- 
tinue to report good levels of 
profitability and new and reward- 
ing growth can be foreseen, the 
directors state. The high level 
of recent investment is proving 
to lie a major factor in tbe cur- 
rent results and “there is no 
foreseeable reason why current 
progress should not bo main- 

The directors propose to pay 
a second interim dividend on 
April 10 which will mean that 
ordinary dividends are being 
made at approximately four 
monthly intervals. A second in- 
terim will be paid at tbe rate 
of 0.5p per share. 

This advertisement complies with the requirements of the Council of The Stock B:change 
of the United Kingdom and the Republic of Ireland. 

BfG Finance Company BV 

(treorpotetedwith tinted febifyinttK i-tehedankj 

U.S. $100,000,000 
Floating Rate Notes 1989 

betendi bleat the Noteholder's option to 1994 

Secured by a Deposit w'lh 

Bankfur Gemeinwirtschaft 


{hcapomt^Mthirricedtetifr/in the Fedunlftepubk: o! Germany) 

The following have agreed to subscribe or procure subscribers for the above Notes : 

European Banking Company Limited 
Bankers Trust International Limited Continental Illinois Limited 
Credit Suisse First Boston Limited N. M. Rothschild & Sons Limited 

Salomon Brothers International Limited Societe Genera le 

The Notes constituting the above Issue have been admitted to the Official List b-' the Council 
of The Stock Exchange subject to the issue of the Kolas. The issue price is 1C0"o. 

Full particulars of The Issuer and the Notes are available m tire E -rfl S«Mtisnc«l Service and 
may be obtained during usual business hours (Suiuioavs e^cep’ec; up to jnd including 2nd 
January, 1 979. from the Brokers to the Issue 

20th December. 1978 


1 2 Token house Yard, 
London EC2R 7AN. 

LCP Holidays, tbe property. 

' " recognition of .their confidence 

that we (CCPC) ^ have now. over- 
..come our past problems and. are-- 
. on a sound, expanding base.” 

News of Unicoip's share pur* - manufacturing-" and motor distri- 
chases comes just days alter' button group has - acquired 
.-.--CCPC announced -(he latest in a Portland 'Motor Group, tbe Ford 
series of major new development inaiii dealers in a £1.7m deal, 
projects. Hie 

LCP extends motor dealing side 

. * ■. 

Allsbpp Is a bookbinder and 
print finisher . and is a main 
supplier of stationery to Sisson. 

... — group has. .been 

|®tected by the Metropolitan 
^•District Council of Wakefield to 
■ cany out a 300.000 sq.ft £J 0 m 
central area " shopping .develop?, 
mention a five acre site In the 
city-centra Building work is ex- 
pected to start In 1980 and the 
scheme, which includes stores 
for Boots, Marks and Spencer 
and British Home Stores, should 
be open for trading by 19S3. 



.Agreement has been reached 
in principle for the Joseph 
Hadley Group, whose major 
operating company as Joseph. 
Hadley (Insurance) a film or 
Lloyd’s insurance brokers with 
London and American insnrance. 
market - connections, shortly to 
join; the Lep Group. 

The Board of Joseph . Hadley 
sees tbe move as providing the 

Portland which operates as a 
Ford main dealer in the Notting- 
ham area has cars, trucks, tractor 
and agricultural machinery 
interest's; ' : r 

Last year this business 
generated £305,000 pre-tax profits 
and the group estimates current 
year profits, in -the region of 
£400.000. Net ' assets of Portland 
are. estimated by the group to 
be around £L5m. 

LCP already has trading 
interests in the East Midlands 
through its fuel - distribution, 
builders men* anting and home- 
centre operations^ 


John James Industrial Hold- 
ings', a” subsidiary of the- John 
James Group, lias acquired tbe 
capital of Tottou Electrical Pro- 
duct* aud its, subsidiary. Electri- 
cal Sales. 

. These private companies, based 
Hear - Southampton, bave been 
purchased ior a total of £841.000 
cash: Book values of the tangible 
assets; acquired total approxi- 
mately £350,000. 

- Tottou is a manufacturer of 

specialised pumps and related 
electric motors from its factory 
in Cadnam. Consolidated profit 
before tax for the year ended 
June 30. 1977 was £188,005 and 
for 1977-78 £211,372. 


Agreement in principle has 
been reached for Bain Dawes 
(Underwriting Agency), a sub- 
sidiary . of Inch cape, to acquire 
75 per cent of the equity of 
Gilllat Scotford and Hayworth, 
underwriting agents at Lloyd’s, 
for a consideration of less than 
1 per cent of the net -assets of 
the Inch cape Group. 


Pentos, the publishing to 
garden products group which 
recently bailed in: ils bid for 
Midland Educational, has now 
acquired Sissons and Parker and 
Its associate company F- F- 

.£ MC7 1 

1 Royal Exchange Ave n London EC3V 3LU. Tel.: 01-2S3 110L 
Index Guide as at November 30, 1978 

.. . Clive Fixed Interest Capital 129.67 

. CHve Fixed Interest Income 114.28 

company with the long term ‘ Allsopp, for.' a total of £957,277. 
financial strength and stability . : Sissons was established over 
necessary to guarantee the con- 120 years ago, and S one of 
-tirnuty. and’ expansion of its.ser- . the. .leading booksellers and 
..Vices,- While Lep sees it as, a stationers in • . Notti n g h am- 

vV>: . 


^..45 Cornhill, London EC3V 3PB. Tel.: 01-623 


' Index Guide as at December 14, 1978 
•’ .Capital Fixed fiiterest Portfolio 


: . -' Income Fixed interest Portfolio 





Eight Vfear Term Loan 


Midland Bank Limited 


Midland Bank Limited 
Midland and International Banks Limited 
Banque Beige Limited —Societe Generate de Banque SA 
Banque Europeenne de Credit (BEC) 
Clydesdale Bank Limited 
Midland Bank Trust Corporation (Jersey) Limited 
European Banking Company Limited 
Iran Overseas Investment Bank Limited 
Samuel Montagu & Co. Limited 


Midland Bank United 

14 December 1573 



Csnpacies and Markets 



to raise 


NEW YORK — Chrysler Cor- 
poration has taken another step 
in its moves to improve its 
underlying financial position 
through the private placement 
of S221.5m of notes with two 
loading insurance companies, 
Prudential Insurance and Aetna 
Life and Casualty. 

Under the terras of the loan 
agreements Chrysler will be 
restricted as to the dividends it 
can pay starting in 1982 by a 
formula which ties dividend 
payments to earnings and any 
future stock sales. 

However the loan agreements 

provide the company with a 
four year gTace period before 
the company must start repay- 
ing any of the principle of the 

The new agreements with the 
two insurance firms will not 
immediately bring in the total 
S231.5m since part of this sum. 
S137.5m, is the re-financing of 
existing loans at an increased 
rate of interest 

The net additional funds the 
company receives will be S93m. 
In addition however, it is freed 
from principle repayments 
totalling $75m over the next 
four years. 

The company is borrowing a 
■total of 8175m from the 
Prudential at a 9.3 per cent rate 
of interest -and $56.5m from 
Aetna at SS per cent. The old 
notes which are being replaced 
carried interest at either 3.5 per 
cent or 5.8 per cent. 

Chrysler has to finance 
around $i.25bn of its estimated 
$7.5bn capital investment pro- 
gramme for the next five years 
from earnings and loans. 
Analysts suggest it has been 
undertaking a continuing pro- 
gramme of raising new funds. 
The sale of its European 

interest to Peugeot-Citxoen for 
an estimated $323.9m in 
Peugeot stock and £250m in 
cash which it bas already 
received. It has yet to receive 
the stock pending Peugeot 
shareholders approval. 

Chrysler also disclosed last 
month that it was seeking 
federal loan guarantees 
$250m in connection with the 
construction of a new rnanu 
factoring plant in Indiana. 

Over the first nine months of 
1978 the company suffered 
loss of $247.8m compared v/lth 
a net profit of $212.9m in the 
same period of last year. 

Reliance to Firestone loss in fourth quarter 


CLEVELAND — Reliance 
Electric said it agreed to buy 
all the outstanding slock of 
Federal Pacific Electric, a unit 
of UV Industrie:-, for $34 5m in 

The sale is subject to the 
approval of UV's stockholders 
and certain other customary 

Reliance Electric said the 
agreement provides that if 
Federal Pacific's 1973 earnings 
before taxes, minority interests 
and the effect of foreign cur- 
rency translation are less than 
S'oOm. the purchase price will 
be equal to 6.9 times Federal 
Pacific's 2(>'.8 pre-tax earnings. 

But in no event will the pur- 
chase price be less than 9325m, 
the company said. 

Ecu ter 


NEW YORK — Firestone 

Tire and Rubber, battered by 
the " 500 " radial recall and 
weak overseas tyre markets, 
reports a fourth quarter loss of 
5127.2m, bringing its total losses 
for the fiscal year ended 
October 31 to 8148.3m, by far 
its worst performance ever, and 
possibly its last as an independ- 
ent entity. But the company 
claims that despite all the bad 
publicity, its market share is 
rising, and it is not pessimistic 
about the future. 

The year-end loss, equivalent 
to 52.58 a share, resulted 
primarily from pre-tax write- 
offs of 5344m to phase out tyre 
production at some U.S. and 
foreign plants, and the recall of 

up to 13m controversial “500” 
radlals ordered by the traffic 
safety authorities. 

But the company statement 
sought to play down the effect 
of the recall. “ The steel belted 
radial 500 controversy caused a 
slight drop in the sales of Fire- 
stone brand passenger car tyres 
in the replacement market 
domestically. But our overall 
share of the market for pas- 
senger tyres and for all types of 
tyres in the U.S. was ahead of 
last year.” 

The company added that the 
500's successor, the 721 steel 
belted radial, had found “ out- 
standing acceptance " in the 
original equipment and replace- 
ment markets, and this was 
providing a “firm foundation 

for Increased future demand for 
our passenger car tyres." 

Sales for the year were 
$4.SSbn, the company- said, up 
some 10 per cent on last year. 
Before the write-offs and after 
tax, Firestone's income for the 
year was 572.1m, equivalent to 
Sl-25 a share, compared with 
8110.2m ($L92) last year. 

Firestone bases its future 
hopes largely on two major 
capital projects. One is a $50m 
PVC resin plant due for com*, 
pletion at Baton Rouge next 
year, which the company hopes 
will place it -among the top 
three companies in the PVC 
market. The other is a S 145 in 
expansion of double heavy’ duty 
radial truck tyre production at 
its Nashville plant by 1982. 


C 32 SH 7 S 

TRW maintains prefit growth 

Columbia loan 
terms fixed 

Ey r.oscmvr/ Burr 

TT'OE DETAILS emerged 
ye'terda; on the terms of the 
J'jCTt.i I -an for Columbia being 
arranged by Chemical Saak 
Intern otio.ia!. The loan package 
b ro t nar’s. c 54C0m tranche 
tu the Ri’p»ib!ic and a 8200m 
ironrhr to Ecmetrol, the state 
oil V'Y-'rar.'- under guarantee of 
th'» r.eoubi'e. 

aerospace products, tools and 
vehicle parts group, is finishing 
] 973 with sales and earnings 
close to budget and with gains 
comparable to those for the first 
cine months, according to Mr. 
Ruben F. Mcttler, chairman 
and chief executive. 

While the company expects a 
slowing of U.S. economic growth 
next year. Mr. Mettler expects 
TEW’s product diversity and 

geographical spread to prevent 
a modest U.S. economic slow- 
down from interrupting its 
sales and earnings growth 

Sales in the fourth quarter 
are maintaining the near 15 per 
cent increase reported for the 
first nine months. This would 
indicate sales for the current 
quarter of more than 5990m 
and sales for the year of 
around 53.75bn. Last year, 

fourth quarter sales were 
8884.1m for all of 2977 they 
were $3.28bn. 

For the 1977 fourth period, 
the company earned about 841m 
or $1.12 a share, fully diluted 
from normal operations. But 
combined effects of currency 
translation gains, profit on sale 
of a buslnes and year-end 
adjustments boosted net income 
to 543.6m. or $1.19 a share. 

Th-» tv. 

m bans '-.arry Ihc 

i rame 




is 10 

ye.-i-s v.- ; 

til. a 

r?.rs ! n rf 

i ps* 

con: ever mi 

erbank rate-; fnr 



years nnd 

} oer 



rest. The 


rev'od h 


i need 

be" ! n i- 



B *.t!h ; 


involve a 


Ashland quits oil shale project 


plemrit refir.-mcinri of ex*st- 
in-? d?hf. The hulk nf the 5400m 
to the Republic will be u=ed 
fnr pubMc works projects, while 
the ba’pnce of EcoperroJ’s 
credit will finance its invest- 
ment programme. 

of oil shale as an energy alterna- 
tive bas received something of a 
setback with Ashland Oil’s an- 
nouncement that it was pulling 
out of a joint project it has with 

The Kentucky-based oil com- 
pany blamed the withdrawal on 
recent studies which indicated 
Increased capital and operating 
expenses “ that could reduce 
profitability, and to unaccept- 

able levels in view of technical, 
political and regulatory uncer- 

The company added that its 
decision was in keeping with its 
corporate strategy of emphasis- 
ing operations that will generate 
cash flow commensurate with 
capital commitments required. 
Ashland recently embarked on a 
programme to divest itself of its 
oil and energy resources and 

concentrate on refining and 
marketing. f - 

The joint, project, in which 
Ashland bad a 25 per cent stake, 
is one of several tracts in 
Colorado and neighbouring 
states which the government set 
aside for oil shale experimenta- 
tion. Several oil companies, in- 
cluding Arco, Shell and Tosco, 
have already dropped out of the 
experiment, citing similar 
reasons to Ashland's. 


FRN sector improves in weak markets 


THE dollar sector of the inter- 
national bond markets was 
softer for the second day run- 
ning yesterday i Tuesday) as the 
dollar continued to weaken 
against major currencies. A 
□umber of houses were not 
quoting prices, and the secon- 
dly market was in some con- 
f..c:oc. Only the flouting rate 
no*'' sector saw prices rise. 

The $50m for ECSC was 
priced at 99 by the lead man- 
ager S. Cl. Warburg. The notes 
which have an average life of 
115.85 veers will yield 9.44 per 
cent to maturity. Immediate 
reaction in the market was that 
such a pricing was “ realistic." 
The developments of the last 
few days had made pricing at a 
discount unavoidable. 

The 8200m floating rate note 
for Bank fuer Gemeinwirtschaft 
was priced at par by cite lead 
manager, European Banking 

In the Deutsche Mark sector 
prices were unchanged, but the 
undertone was much firmer 
than on Monday. Turnover was 
described by dealers as well up 
on the levels of the day 
before. The DM 50m Issue for 
the Union Bank of Finland was 
priced at 99 with indicated 
terms otherwise unchanged by 
the lead manager Westdeutscbe 
Landes bank. The notes will 
yie'tl 6.M per cent. 

The DM 50m convertible for 
Omron Tateisi Electronics was 
also priced at par by the lead 
manager BHF Bank. The con- 
version price is Y906 for DM 1 

and the conversion rate has 
been fixed at Y104.04 for DM l. 

The capital markets sub- 
committee meets today to decide 
on the size of the calendar of 
new issues for next month. Some 
German bankers are hoping it 
will be smaller than the last 
which amounted to about 
DM l.Bbn. The same bankers 
would welcome a volume of new 
issues closer to DM lbn — with 
only prime borrowers included. 

In the Swiss Franc sector, a 
SwFr 40m 1 5-year bond, carry- 
ing a coupon of 4 per cent has 
been arranged for Norges Hvpo- 
tekforening Naerinsslivet Ey 
Nordficanz-Bank in Zurich. The 
notes, which have l*cen priced at 
par and a half yield 3.95 per 

A Y20m bond for the 

Republic of Finland has been 
arranged through Yamaichi. 
There are two tranches, both 
of YlObn. The first tranche is 
a five-year bullet and carries a 
coupon of 5.6 per cent. It has 
been priced at 99. The second 
has a ten-year maturity, an aver- 
age life of nine years. It carries 
a coupon of 6.8 per cent and has 
been priced at 99.7. 

The Industrial Bank of Japan 
is arranging a $50rn five-year 
private placement of bonds in 
the U.S. through Morgan 
Stanley. The borrowers is pay- 
ing a coupon of { per cent over 
the middle offered and hid. six- 
month London interbank rate. 
There is no minimum interest 

over 46% 
profit rise 

By Anthony Rowley 

HONG KONG — Wheelock 
Harden and Co, the diversi- 
fied shipping and trading 
group, achieved a 46 per cent 
rise in pre-tax profits to 
HKS125m OLS.S2S.2m) In the 
half year to September 30. 

Mr. John Harden, chair- 
man, said "These excellent 
results reflect the general im- 
provement achieved by group 
companies ” hut that they 
should not necessarily be 
taken as indicative of the 
final profit figure for the year. 

The interim profit figures 
Included, he added, an un- 
realised exchange gain figure 
of HK$&9m (U-S.51.9ni) aris- 
ing from the translation of 
Yen currency balances into 
Hong Kong dollars at rates 
prevailing on September 30. 
This gain would be trans- 
f erred d to the exchange re- 
serve account at the end of 
the year, in accordance with 
Wheelock's accounting policy. 

Extraordinary profits in 
Wheelock’s first-half results 
amounted to only HKS2~7m. 
However, compared with an 
extraordinary gain of 
HR$10.9m in the correspond- 
ing period of last year. 

The interim dividend is 
being maintained at 5 cents 
per “A” share and 0.5 cents 
per share. A total 

distribution for the year of 
not less than 17 cents on tie 
“A” stock and 1.7 cents on the 
“R" stock is forecast 

ICI Australia 
to raise $57.4m 
by debenture 

By James Forth 

SYDNEY — ICt - Australia, 
the local offshoot of the UK 
chemicals, plastics and textile 
group, plans to raise A$50m 

(857.4m) through a “family" 
debenture issue to share, 
debenture and noteholders. It 
it the largest debenture offer- 
ing by the company and the 
first “ family " approach since 
February, 1975. 

News of the issue came 
only one week after the 
directors announced a 43 per 
cent rise In group profit for 
the year to September 30 to 

• ICI is offering 10 per cent 
for six years and 10.5 per cent 
for ten, 25 and 20 year 
maturities. The rates are in 
line with recent offerings by 
other major Industrial com- 
panies and confirm that 
domestic interest rates have 
bottomed out. 

Australia’s largest company 
and prime borrower recently 
attempted the biggest local 
debenture Issue by an indus- 
trial company of AfilOOm with 
a long term rate of 9.9 per 

Debenture issues by BHF 
Holdings normally fill quickly 
bat this offering has been 
open several weeks, and only 
recently managed to reach the 
underwritten figure of 
A 1580m, indicating that other 
industrial companies would 
be unable to break below 10 
per cent at the present time. 

ICI, a regular debenture 
borrower, is among the prime 
borrowers and has a reputa- 
tion for pitching its issues at 
fine rates. The terras of its 
issue suggest the industrial 
long-term rate Is between 10 
and 10.5 per cent, depending 
on the status of the borrower. 

The latest issue has been 
underwritten by stockbroker 
Potter Partners and the 
Australian United Corpora- 
tion as to AJ40m, with the 
right to over-subscriptions up 
to ASlOm. 

Applications elose February 
21 next year, and the stock 
can be paid cither In full on 
application or SO per cent on 
application and the balance on 
August 31, 

Steel group sees 


BONN— Kloedmer-Werke, the 
West German steel maker, be- 

with signs of a slight turn for 
the better and prospects of a 
return to profitable working, 
according to the chairman, Herr 
Herbert Gienow. •• 

for the group rbse by 23. per ; ; the /processes , used iuVx&infsfeel ■/ . 

cent to DM ' , '• \ -• 

^ . Herr Gienow, in comments^ The JQoeckner chatmanalso ;. 

lleves that the downhill path. of -.produ ced , .in . a works- maga-. strongly defended the«Mupahy’s • :■■■■•'; ' 

recent years has been ended, . said that Kloeckner ;fead . acquisition if fi» .Maxhuette 

been paying a heavy - price for ; 'steel : works f rom- ^ the V . 

the modertiisatKm ’progwmme ‘gronp— a transactiDh-.aue'2o be . . 

of recent years.' But since- 1,970, completed da Januftry.-I- at a ■?£ ' r- 
it had been able to' modernise price -of about DM'267m. > Berr . -- 

i te crude steel and rolled p^-. Gi^w^d Maxhoette>hed.b^t -v'-' 
ducts capacity to a degree tijov' operating in the bla^.w^wlast - 
Commenting on preliminary' equalled by virtually any- other August,, thanks .in .part Jo .its., 
results for the 1977-73 business European competitor. . 'As -'a accents its own'-2ron/<k« l at V- r 
year to September 30, Herr re sult, the roaspany ;waS:-Y^-._lt^f \ ; v 

Gienow said it would show a- y, e jj placed to benefit from ^. t^Bte^^plarrts qh'jte:Gfensaii • 

lower loss than that of the pre- improvement in the steel: mar- coast. * S A lv - 

Heir'Gwnw.safd that&toecfc- >:.- .. - 
SoeelficaUy. Herr Gienow said ner*s\\ moderpi^ttonv piU^. Trad . ■?. 

vious year, Kloeckner managed 
to increase crude steel output 
by 11J2 per cent during the year 
to 4£m tonnes, and saw sales of 
steel products edge up by. 12 
per cent to DM 2.6fbn. 

As a result of Iftoeckheris In- 
creasing diversification :' ‘into 
other areas, however, total sales 

that application of 1 ^ 0601016 * seen^the traiaformahc^^'aMne 
own K S E steel-making process 4m tonnes ttfjSapactty at a leas 
at the Georgsmarieahuette of . some .lOtfOO jdteyfFtc* pre- 
works was expected to result in lhalnaiy lSTT-TB ^gmes show a 
energy savings of as much' as .decHae-’ tfcaBfxrL jobs in 
40 per cent over the existing the steetnuilpng area ^ iaBt year 
SiemensMartln process or over alone. ' : -■ ' 

rate of earnings growth 


AMSTERDAM— Helneldn, .the 
international beer and drinks 
group, expects no major change 
in profit trends In the entreat 
year after a satisfactory, perfor- 
mance in 1977-78. The Board 
declined to be more specific 

month Heineken plans to pay 
an unchanged cash; dividend of 
FI 3.50 per share on. capital; 
which has bees increased -by 25' 
per cent. Turnover rose S per. 
cent to FI 2.67bn.-(S1.33bn)'.~ , -:' 

Cash sales rose most strohgiy 

h Europe outside Hpilsnd and 

(8128m) in the year ended Sep- 
tember, while profit at the net 
level was 8 per cent higher at 
FI 118.7m. 

The group's performance In 
Holland in the first quarter of 
the current reporting period 
-was “not bad” while elsewhere 
previous trends were . ^main- 
tained." Heineken proposes 
a change in its finaheial' year 
extending the current reporting 
period to 15 months. - 

As announced earlier this 

in the Americas. . 1 

Investment rose FL 64m ‘to 
FI 275m last year apd js 
expected to remain, around this 
level in the current period.; In 
Holland Heineken raised its 
share of the beer market t» 57il 
per cent from 57.6 per 'cent 
with the share of the ’l>p±ch. 
soft drinks market rising -_to 
20 per cent It also increased Its 
share of- the -1 surprisingly 
buoyant spirits market to’ nearly 
19 per cent. ■ ■ 

PlairtP split 


Olivetti oft Paris Bourse 


ROME — Olivetti ordinary 
shares have been admitted for 
official quotation on the Paris 
bourse beginning December 28. 
The decision was taken by the 
Chamb re Syndicate des 'Agents 
de Change after a request on 
behalf of the group by Credit 
Lyonnais, the leading French 

Although Olivetti 
shares have been 

Paris since 1961,:th& quotatjpn 
for the ordinary shares of tht 
typewriter and calculator_group : 
Is only the .- second, - after- 
Geneva, outside Daly;; - ‘ > 

The step has been balled by, 
Olivetti as an. important achieve- 
ment given - the* -relatively: 

standards, . which- a -candidate I „ . . 

i preferred company muat comply j^th .in hN^' .-50m. .G89Bm)' : 
traded ‘ in Paris. v ■ 7 -^purpose. : ■” ' 


By Kay^Sjestaru; ; - - . 

' OSLO^r AnTteterim . compauiy . 
will' be :Set.i^ ,; : sobn to 1 acquire.-/ 

and . keep^in-' v t 

profitable - 

the Norwegian; x State-owned. " 
electronics concerir was' ■ : 

recently declared bankrupt*- •: , ;« . - 

HaiK apprised tbifl i ’ ■ 

the Ministry J r-:e£- ^Indusliy, ' 

envisaging the new cpp^injf as • " 

a’ partnersliip vbe tween the Site ' ; ••• 

industrial^ Aid r - Fund- ;L4Sper\ 
cent), Kbng6berg Yapenfal»^k, ’ 

a stete-OHmed".mtdddon^;and. 
electrpnics flrmH^) par ctot). *£... - 
. add- ‘ two : privateer. « ; gowned . 

Norwegian vetqctanrfflSrV^roai-: j " • 
panies, -Slmra d arid. Nbr 9^'Datk. ' . • ■ r : 
^20 per cent each);" V ' 

-. The ! .interim ^‘coimi.tmy .is : v’ 

, expected to liaveiminiMl^harerf'" -• 
IrCapital of N^ TO»Ofldr(8lO;0OO) ; , 

K( the : legal .Tninimiah)j-,.-lt^Wll - 
negotiate; ; 

receivers, about; the- putotoBe pf K. .' • ‘ ' 

: prod uction ; facilities and rights .: 

*>r: those product tines which .- 
ft "believes trf 'he jeconomlcally 
viable — primarily • . • Taodberg’s .- " 

da ta^ processing 'equipment^ and 4 
ianguage laboTotpries^ although CPC 

some; other lines may also 'be — 

‘‘rescued.^ _ . 

j,? Operating capital, Jiiittally, > . 
-wiH- ‘lie';: supplied. . -by :the-j 

-jBxdiistrUl. Aid : .Ftind. The^;^ 

rigorous conditions,, by - Italian 4 " Government wH ask Pariiamentji: • 

to approve V an 1 allocation •_ of ■ 
— - ~ this % ‘ 


Australia widens 

for takeovers 


tralian Government relaxed its 
rules on foreign ownership in 
an attempt to attract more 
overseas investment. Recent 
events indicate that, without 
any fanfare this time, they are 
undergoing further relaxation. 
The Government is adopting a 
more liberal attitude to take- 
overs of Australian companies 
by foreign interests than was 
indicated when the policy 
changes were introduced. 

It seems that the motivation 
is a growing emphasis by the 
Government on foreign invest- 
ment as a means of lifting the 
Australian economy out of its 
recession. Other strategies— the 
im’esrmont-ted recovery and the 
export-led recovery — have been 
tried and found wanting. Now 
it appears th? Government is 
pinning its hopes on the fureign 
capital-led recovery'. The 
Treasurer, Mr. John Howard, 
strewed when delivering the 
1 973-79 federal budget that an 
increased private capital inflow 
was crucial to the recovery of 
th^ economy. 

This has baeome more 
imnorrant. because the deterior- 
ation in the terms of trade has 

adversely affected the balance 
of payments, creating pressure 
on the exchange rate. The 

foreign shareholder has 15 per 
cent or more of the capital or 
if the foreign shareholdings 

Government is expecting a aggregate 40 per cent or more 

current account deficit of about 
A?3bn (U.S.$3.4bn) in 197S-79 
compared with A82.4bn in 1977- 
78 and is looking to a capital 
inflow to bridge the gap. There 
was a surge in the June, 1978 
quarter bur this appears to have 
been largely to take advantage 
of tax concessions for invest- 
ment in plant and the inflow lias 
dropped away again. 

Honorary status 

Recently released figures 
showed there was a net foreign 
investment Inflow of A$20Sm in 
the September quarter, com- 
pared with AS305m in the June 
quarter. Direct foreign invest- 
ment in the September quarter 
was AS 136m— a fall of 60 per 
cent on rhe figure of A$345m 
for the June quarter. These 
figures tend to explain the 
current Government attitude to 
foreign investment proposals. 

Under Australia's Foreign 
Takeovers Act a company is 
classed as foreign if a single 

Of the capital. The policy 
changes spelled out in June pro- 
vided for foreign companies to 
be granted honorary Australian 
status for new projects. 

To qualify, the foreign com- 
pany had to have at least 25 per 
cent local equity, give a public 
commitment to lift the 
Australian equity to at least 51 
per cent and appoint a majority 
of Australians to the Board. 
The changes were aimed mainly 
at technically foreign companies 
listed on stock exchanges with 
an existing local equity, which, 
it was claimed, were at a disad- 
vantage under the existing 

The changes were stoutly re- 
sisted at the time by a number 
of large Australian companies, 
notably CSR and Broken Hill 
Proprietary, which argued that 
they would result in a flood of 
foreign takeovers. 

The Government bowed 
slightly to the pressure and 
agreed to exclude company take- 
overs from the relaxation. Com- 

panies which have agreed to 
‘‘naturalise” could still make 
bids for Australian companies, 
but they would need to seek 
approval from the Foreign 
Investment Review Board, on 
the same status as foreign com- 
panies which had made no 
commiment to naturalise. 

It appears however, that the 
naturalisation formula may 
have spread to company take- 
overs. In July the Government 
rejected a proposal by Brooke 
Bond Liebig of the UK to 
acquire the local tea and coffee 
group, Bushells Investments, 
for A834m (US$39m) cash on 
the grounds that it was not m 
the national interest. It soon 
became general knowledge that 
one of the factors behind Jig 
rejection was the Government’s 
desire to ensure that a signifi- 
cant local equity was retained 
in Bushel's. 

Revised offer 

Brooke Bond persisted and 
last month the Government 
approved a revised offer which 
Mr. Howard claimed had been 
“ framed to accord with the 

spirit of its foreign investment 
policy.” In fact, the new pro- 
posal was that Australia's 
largest life office, the Austra- 
lian Mutual Provident Society, 
would first take a 25 per cent 
interest in Brooke Bond’s local 
activities; and the UK group 
agreed to increase the local 
equity to 51 per cent within 
three to five years. The scheme 
is almost identical with the 
naturalisation formula which 
was not supposed to apply to 
company takeovers. 

Senior officials of the FERB 
recently visited Japan, the TJ.S. 
and the UK on a mission to 
explain the Government’s 
foreign investment policy and 
to attract investment The 
chairman of the FIRB, Sir Bade 
Callaghan, claimed early this 
month on his return from the 
U.S. that the mission had 
achieved very encouraging 
results, and had received many 
inquiries about investing in 
Australia. The Prime Minister, 
Mr. Malcolm Fraser, has sub- 
sequently proposed a closer 
working relationship between 
FFRB and state authorities to 
remove any obstacles to over- 
seas investment plans. 


The list shows the 200 latest international bond issues tor which in adequate secondary market 
exists. For farther details of these or other bonds see published 5w?=£.NC> 

on the second Monday of each month. 

Change on 

lamed Bid Offer 4a» v weak Yield 
2* « Bl 'HI -0J 1M7. 

Oosing prices oD December . 19 . 


Ma Akt. Oi AS 

Australia 8.45 S3 

Australia 91 83 . 
Beatrice Foods 7* S3 

CECA 8J 87 

CECA 9 93 

CECA W 98 

CXT ® 93 

Canada 8 83 

Canada 8 JO 85 

Canada 8i 98 

Canada 9 S3 ...... 

... TJS 
.... 75 

... a 

.... 25 

... as 



— 350 



Canada 91 9S — 353 

Canadair Si 83 73 

Dominion Bridge Co. 9 89 35 

EIB M 93 — JS 

Eteportflnana 0 St a 

Finland 8i 83 190 

Finland 9 83 

Hospital 0/5 9 83 

ltel Finance 91 90 

J. C. Penney 9k 83 

Mac Bloedel 91 93 

N2 Dor. FM. 81 83 

NZ Dev. FUL 8| 85 

NaL W«L 9 S8 

Newfoundland 94 90 

yord lav. Bk. MSS ... 

Nurses Konun. 9i 98 

Norsk Hydro 94 94 

Norwa> 7i 83 — - 

Norway Si S3 

Occidental 8} SS 

Out. Hydro 84 85 

Quebec Hydro 94 93 

Sttvden W 95 























9 * 











9U -04 ~U 
« Hli -M 










UK Si S3 150 































. 9.76 




- 0 * 



























9 -TO 





. -I'. 





















-ft . 

HU ' 








t1 • 








',-rZ , 


0 . 

'— 1 " ■ 

















Argentina 64 88 

Asian Develop. Bk. 54 83 100 

Ansiralia 6 89 253 

AibUic 5! 90 153 

BanKamcrjca 51 90 150 

Bnue. Bn. Algeria 71 Si... UO 

CECA ( 88 153 

Canada 41 S3 600 

Cbase Manhattan 0/5 6 93 100 

Commerzbank Ins. ww 34 ISO 

Commerzbank int. XW 34 100 

Copenhagen City 0 M - 75 

council Ot Europe 64 100 

council or Europe 6k 130 

EIB 8 90 308 

Ell Aquitaine 54 SS IN 

Finland 6 83 150 

Hitachi SUP. 51 S3 50 

IBJ 5 84 100 

Indonesia 7 84 UB 

Kobe, city Of 5: 38 100 

Light Serrtcos do Elct. „ . 150 

Mexico 6 83 200 

Mitsubishi Ferro. 3! 85 ... 10B 

Nippon Steel 5' 85 100 

Norses Kornm. S 3D 130' 

Nonrey 41 S3 250 

Norwegian lad. Bk. 6 90... 125 

Occidental 0! 90 150 

OKB 64 Bk 100 

Petroled Brasil 7 S3 190 

PK Baaken 5i 53 ISO 

Quebec. Prorinco of 6 90 U0 

Ricoh 54 S3 30 

Spain 6 SS 293 

Enroll 8 88 153 

UDS Group 54 S3 65 

Venezuela 64 90 iSj 

World Bank fii B8 AN 









Cjnutsv An 

Issued Bid Offur day me&'Ytcfd 
US 954 951 0 +01 ’ 7.13 

TOi 931 . +14 —04 
MSI 102 ■ +04 +04 
*U MJ -94 -W 
994 992 0 +94 

96J 974 O - +04 
97 974 -01 ;0 

904 981 -04 I 

UU 102 —M .—01 
saw JMi +(U — Dl 
024 834 —04 .+01 
931 95fi 0 — W 

99 99| -OT -04 

975 9tt O « 

964 964 . O -04 
93g 946 *■.-■ -01 

901 99 -04 +01 

MQi 1384 -04 -01 
998 1004 +01 -+l 
974 TO 8 ' —04 

180 1008 .0 —04 

961 971 +04 0.: 

974 984 +01 ■ +01 
.994 im ’"+04 +04- 

1004 1002 +01 -KU ; AM 

vn 971 -81 -m L38 

968 • 974 '+04. . O *J7 

974 9B -01--04..M9 
TO TO -Oil. -HB1 745 
UOi ua +W +04 
982 ■ 991 • 

934 944 ’ +«4 —04 

«i m -mi o 

l»i W&. +B. . +01 
«S 95S +04 t-01 
99 0.0. 

97j TO -01 HU 
«1 95 +« +01 

1972 981 0 0 

6 S 2 



: 7 M 
' 6Jt. 
: 7 J7 


Acesa 88 .... 

American Exp. Int. 34 83 40 

Artbers Tunnel 4 93 43 

AustrU 34 93 - .. too 

Br«a 4 * us 

Cbase jftmiunM 4 ro .„ 79 

Bankamerica 31 as n 

BNDE 5 88 75 

Denmark: 44 80 100 

Dcmnaric-uoruaM Bk. 

EIB 44 93 

Euraiom 4} ftl 

F. L. Smldth 44 89 .... 

Finland 44 83 

Ftm Chicago U 83 

GZD 4} 85 

BIlil-JJecbenBtdn 44 .. 

ICI Fin. NV 44 83 

Malaysia 44 90 

MJRJM&a 4 93 

Nms 4 03 

Norms Kumm. 44 90 .. 

OKB 4 83 

Oy Noku 5 W 

Safe 4r 93 

Sondvlk 4 80 

Seas 4i 88 

Vowt'Alplnp 44 83 

Yoralbers Krah 4 83 -... 

Vienna 4 83 ua 

World Bank 44 >9 ........... 350 

Outturn w * 

iMMd Bid Off or day: vmfc TfeW 
40 u» 1044 - -H'. +ei: . a .75 
5 * 103 +64-+04 

«i Wtt +04 , +12 
«i 96. .-IU. + 8 * 

974 97* +61 +m 

Ms* im +« +« 

101 MU +81 +Bj 

104 mu a +t 

U3 184 -1 v84 

was im +01 +ot 
JUUI 1021+01+02 
2083 UB +81 +1 
MU IBS +0g + 01 
M3 UBl 0 +03 

100 3002 0 -11 

IKS 1023 0 +01 

U9 13* +04 +81 
MM MM. -81 -—H 
993 300 + 01 - +M 

iffli mi +dS:+«> 

Wi 1881 +«.+«- 
iwa 10 s +o* ■ +.o* 

992 1002 O. 6 
1^1 U34 +914 +0{ 

Wj U 2 -04 -+01 

102 M24 -»-+« 

1 SH +B 2 • +M 

182 UZ* +84 +W 

lflll HQJ —Q| *■ 
in 38X4 -ft +08 3,98 
«a 10 a +ia.* +o4 ,.«jb 



























OJB . 

422- : 



41T ; 




C2T ’ 



SM ■ 
r.« : 



»78~ . 
■MB - 

t ¥■*+ 

~ - ' • - . Omasa on 

•"YEN STRAIGHTS' taand Bid Offer day week 

JtaUn Dev. Bk. SI , 15 96» 17 - t 0 

-•’•BTCB «A " Di 8 » TJI 

f. ‘ElrtoBlta 8.8 » : II - 964 - 97 -04- -01 UN 

-W-1B32.W1I .8. ,+B4;-5A« 

'KffCF 6.6 M a 9S| 9ir j 0 

-Sweden 021 » 




‘ Cbaaoem 

OTHER-STRAIGHTS ; •••■ toned DM Offer day week TWd 
’-R«* 0/9 Bold. 11MV 12 9S._ W. « ’ +3* 22.78 

AWpXBte B«5Q. 7 SB BUA 1A . -95 *6 . ”2 7JS 

Cobetanuted T.S3 EUA- ri' 95 +Bi -34 7J3- 

IS 951 961 .8 -84 748 

Finland. Ind. Bk. 7 83 EtJA 

Komnu lDSL 71 93 EUA- 

Panama 84 to eua 

SDR France T VS EUA 
Alicmcnn Bk/SJ-SS Fl'i. 
Bra*fl M to Fl'..;. 

CPE Marieo 74; O FI 
ETB 74 95 FI 

Nader. MidAtnfc; ft S3 FI 

JVcw Zealand |R M n „-.- 

- Nanny 64 .83 FI . 1 *.- 

OKB 8*85 VI J.-. 

Elf Aoukaino 9| 88 FFt 150 
BIB 94 M PVT -2M 

as 98 99 -04 -747 

28 - 96 97- -1 . +94 847 

Zt 9S- TO .-fll -01 743 

35 . su «a;*n -ff 'U 

75" 931 W - 8 * - S 948- 
75 961 TO +04.-34 k<7 

75 -934 9» : -+0| -04 . 846 

7S'9J. 9«-’.+8i =H«t M2 
35 - . 9M TO" -OS -K .-. AW 
XB3 .; gfc-925 +3 -84 MS 
Vif 894 W -« -14 ; .'838 

IU; 9U +81 +Bt 9.99 
984 -984 8 0 9Jffl 

Unilever 30 SS FFr J 00 .'jaoi I* +U +« 441 
BAT 8 88 LuxFr — . "MO: W YM "+ 0 J +34--.*^ 

Bay or lux. s 8 ft LaXFr -..; r 253 
£33 71 88 LuxFr . , 258 

Finland !. Td. 8 88 LaxFr 258 

Norway vl SS LaxPr 250 

Renault 7 * 88 LuxFr 588 
Solway Fin. S 85 LtutFr. ...; 590 . 
Swediab L Bfc.S 88 LorFr 530 
Gesretner . HM. BV II 88 £ - 13 
■WWtbread 10 * 09 l 15 





8.7S • 

8 M'. : . 
Mt ’ 

_ ... . ... WO - 

1834 aou +U . +04 745 
W : MO . " 0 SAT ■ 

.881 . 891 +W +U J542 - - 
8SI.-864 . 0 -01 1247 

964 ■ +Di 0 
94 +91 
9M,+04 -01 
TO' -64 +8* 
.981 -84 +04 


MOTES • ; -- Spread. BU Offtr c^fat* Cow Cyf* 

Ameripa Etwrwffl «t K : TO v 9fl W* 182 ' M42 
Arab IniL Bank Mft.S 85- : 951 

Banco El ..Salvador MK 33 U ; 964 


Banco Nat" Ardent MB. 88 
Bat* . Ejuullitwy ■ MS. 88 .... 
Bank of- Tokyo MS 93 -V 
. Banqn* -Worms MET SB ... 

Bq. Ext fAl*. UB473 34 
-Btrae. Ext; d'Ala. M7-5W 
. Bdue. Indo el Sues MB* 

Bo. int- ATr. Oct M8J-83 


CCF M5f 83 

Chase Man. O/S M3* ac- 

credit National- M» 88;... 
Goubae&en MS 88 
Bid. Bank Japan MS 43... 
lublfcawajlma MSI S3 

LlubUiMka M7.7S 8S 

LTCB Janan MM S3 ’ 

Midland Inti M3* S3 

N»L West. MS* 90 

okb ms; 88 .... .. 

Otlabore Minina 8s : £4 

Priwredna Banka MS 88 .. . 84. 

Standard dart. MBA *C_v. 01 

SundaraUsbanken M 0 -8&.; . 81 
UttL Oswwu Bk.-Ma 33 U 


.- K!S---96I‘ 

■M.- 964 
•I 93 
-Oi- TO 1 
U 9U 
01 -97.-. 
11 991 

fll TO 
•OS' '.TO 
04 . TO 

\ 9 K 

Ttt_ TO. 
«!-’ 971 
• 81 971 

U 99J 

TO 3X/1 94 9.77 .-i : v 

TO 12/4 im 3X46 - ; - - 

ITl'ZVl .91 ' 946 ■. .. 11 :'r 
TO 2S/U-I2.M 1329 -.C; ... 

TO 38/4 331- ’.1044 o.;.:- 
TO’ 15/12 905 'Ssr -• 

TO .9/2 94. V 9.12 JL'" .4. : . - . 
TO 2/5 121 1336 1 . : . .. 

m Tsn.- 94 - 94 s -• 

971 -EW 9* . 9.66K. ; • -5- . ;s . . 
TO - 3/2 9J§ 946. - J- . . . 1 ■ 

991 3/5 m 2243 '-:- - 7 

•Bk. TO W/i - wi 04 S :• w .* 

9T> W XW1 9JL9 . ' 9 JJ9 - a. ‘ — > . -V 

« -xs^-jaur mu ^ -- 

TO :■ x/fr.xzS .ma . ; * * :• j. 

98 27/d -111 lift • • 

TO 29/1 184 2848-0 ' * 

99 VIS EOS 1222 "* ^’r - 

98- 29/t 944 946 •••"’. :-.: r 

9BJ.2X/X2 MI 940. 



18/4 1046 2040.Iaj.__ 

gA 94. 9U ^eY IVIA* 

20/a 8.94 9A' 


•964 'TO. 

9*1 TO «/4 1046 M 39 
TO ' +9 ; . 4/5 1231 1247 

COHVERTIRLB ' . Ort. Cu+. ’ . Ojfl. 

M ^“2 Pricn BM offer Bay Pran 

Aeics al 08 9/78 KB - 1SZ ~m?t -*B4 UM0* 1 - 

Baked IfflL Pin. 9* 0B ....... 1/79 34. UU XS21 -ft* 12.92 '- ' 

Boom a 03 . ........ .; 2/79 2JA , -. » VS +« 

Coca -Cola Botuioa fi| - 4 / 7 1 -9 SS 98 — U 2S23 C » 

Boorokadojj 9J .w.-;-. 6/W'XTO X29i 1384 -f-sf -2^- ' ‘ap*, D '' / 

■SVn .Indostrt 1 89 4/79 3»~ 93| ; 911. .+« 3.79 

Tesaa int. Air. 7* 93 4/79 > X4L5- .iff-.--.- UI — « * 45 - ’•••- . 

2 -— '»**(!• JSUj'.ltt -MU -Ml' ■ 

Int. Fllt.84 88 . . — t/ 7 B- i 21 . «T -388 r-fi* 114* 

Tyco- toti Pin, 5 «-.»■>, «4/T8 MUS ■ '75 . - 97-.: +« 15049 - 
AGObl Optical 36 DM _. JU/7B 5HU-' ■ ; H*r ’ 921 +81 —052 
psio Comp. 3* J&TM ^ll/« -841: ,101+,Xa2J -OI' 2.19 : 

Izamiya 3), 88 DM ^_rofl/n ~u * 45 ; : 

- Jwco-31.88 1270;;. 990..^ HR; 3126. 

Kanlchlratai .3* :Ba-DM ^l/79 ^ UZ-.- 9 X& 94 Z -tt' 444" 

Maradnt Food 8 * DV: w ;2/79 1835 .To - TO —or- 1249 .V 
Mbraw UVLja W DM "W* W -tTO 5* +lJ X» ’ 

2 }?^ ^' 3 - 5 -?? S ! 4 ^2/7B '4B8 . «' +« BPS'' 

w- B ? a S5£. W ^, , L I 2!> V f25 738 .7238:1141; +« ■ X-75^. 

Nippon Tftitn. 3* 85 DM.„ U7» S3 , .IB-TO +»■ ZMi,.. 

Ntwan Dteacl 3i 50 Uld -j. 2/0 4T7 9ft - 95* "+BJ-. 1U4 ’ 

» air zm ? w... toto: * .-*£ 

Hlcpb g BB. Mf. — Jl/W- -m.. 73 M —81^941 

JtWarp EtoCtrte 31 PM iU SHS., 869- JBB WH.' -W 6*1 
..-,;^U/m HR-. 8 W" Wt. -01 


Trip-KemroodJ* 8? DM . Jim 

^ - 

l Ojflr ««- raarltei maker suwiMd^.BiiceL * ^ \ 
5»^sht«cmte 'n»<; yJdd teQft yield j 0 redejnpUon of. ft 1 - 
«Wce: Tl»-gKHntt-lsgftcd:u.-fa: anikm of canmitf:, 

‘ bcadSLwW * u*-«fti^^ 

' over nrtes g MMfcMffltfty-..: .7 :• .. 

doflait anieo now. 

, . w'ae- £^Kart«L M^Mumbirai coBpn&: -C.OafeslMfa oeT’'- 

' g - g; - -CLeisifcCtte csfrronrcnBW 1 

- CLyld=Tlie current ytej<j., , 
;l»a«si ^entmuwtisd'lQ: dcdfar^'imliai :o*eta»&« 


. todl eged. C bg, day= Ctongp? oa.tha 1 '. . cw^datt=Flrpt daT-- 
" rsrt&mtort adWWti 

25 ? Z^^J?*** 3 * ^ hi. aut eaer*a at .oaawr,; 

- onnBDi. atailve pztea 
Oj?rtJw ' 


mBam&^b^-m^aiSsr December -^Q 1978 

-— iv'vV- 


This amouftremfni appears as a mailer of record only. 


Bfr. 19 ] n(e | D»r'» I Cl im 

• uc^puc , 

Vi i Despite further intervention . 
' ■ by. tile U.S. Fetters I Reserve and 

■ r .- ..•■ j.*; several other central bapKs, the 
^f-doHar continued to .lose ground 
..-.I ‘- s ., 4 i_in the. foreign: exchange -market 
oN: ‘yesterday- Trading ,.*as 4 .V«;ry 
: *.; ■«' . nervous-, hot the: If .5; currency - 

‘.finished above its '-lowest levels 
r the day. Tta .yen, .D-mark. 

. v >. b-.-; and sterling, seemed ta,cpnun*nd 
- * ’■c -jnost interest, wftfe. the Japanese ‘ 
... unit moving. witbiiL a range of- 
•• Y182.2Q to Y1 93.30 against the 

- . '-.y’ .dollar, before closing at Y193.20, 
'• V * v . compared with Y1S3.05 previ- 
: ; voasJy. The doJlarsrangeegahzst 
. -V ‘t>.tfce Dm ark was DML-836Q to 
> . .DM1.8S80, and it -finished at. 
•• s, fDMl-8420. compared':: .with' 
• * r DM1.8585 on Monttoy,. -Move--: 
.*. meats against the* Swiss * franc 







d»n§»«i YEN freer 
afftetfSotto Canutes 

■ LhlllLij 


\ were between SwFr 16320 to 
>1 SwFr 1-6580, before the dollar 
. closed at SwPr X6420_ against 
; - : ? .SwPr L6665. .. 

•> Hie dollar's trade-weighted der . 

^preciation, as calculated by Mor- 
; <.vgan. Goaranty of New York, 

’ ^ widened to '9.5 per cent from 
-".'9.4 per cent • 

\r v Sterling’s trade-weighted in* 
••^r.dex, on Bank of England figures, 

: .^Teased to . 63.3 from 63.4, after 
-„T touching a>bigh point of 63.6 at 
: noon, and standing at 63.3 in the 
-■.’■morning. 1 - 

t . The pound opened at $2.0040- 
', $2.0050, and rose steadily as the 
- .. ; • dollar lost ground in the mom- 
v?ihg. It touched a' best level of 
‘'' S2.0270-S2.0280 shortly afler noon, 

■ - . but eased back to S2.0125-S2'0135 
- ■ by mid- afternoon. Sterling closed 

•at aLOQ9fi«2Jiuo. ariseof 45 
, points on. .the . daj.' - . ■_ . 

.'JfBW YORBC—The doHar-rose 
slightly in- nervous ear# trading. 
with 1 signs of possible interven- 
tion by the Federal Reserve- 
PASIS — After a general 
decline, .in' a’ wj: nervous 
market the - doUar *"- finished 
around its lowest: letelvOf- the 

-day against the Trench. fr»“. 

It ended it PFr 4508Wta20, 
compared with "FFr -42550-4^600 
an Monday. ' Dealers reported 
support for the dollar by-central 
/bapks' doting- the afternoon. 
Sterling " also declined sgiitost 
the franc, closing at FRr ,8.4770. 

; -compared 1 with FFr 8.5225 in. the 
morning, and FFr S-5430 Monday 
afternoon. The Swi£s_-franc 
dosed at FFr 2^420, , Against 
FFr ^5710 previously, while the 
D-mark was unchanged -from its 
- late -Monday level, at 1^-34305- 
FRANKFUBT—Heavy’. aeffing 

pushed down the dollar, in early 
trading, when there was little 
sign of intervention by central 
h anks , - The. Bundesbank did 
intervene at the fixing, however, 
buying S59.8m in -very nervous 
trading. The dollar fell sharply 
to DM1.8390. from DSEU8870 at 
Monday's fixing, but. recovered 
. somewhat in the afternoon, 
rising to DM15405, following 
support for the dollar^Dy the 
U.S. Federal Reserve. : Central 
bank intervention, was.' fairly 
strong throughout the afternoon, 
presumably to prevent the snow- 
ball effect of the morning, when 
the U.S. currency felhto steps 
in the absence of support from , 
the authorities. 

AMSTERDAM— The dollar im- 
proved to FI 3.9925; to late 
trading, from a fixing .level of 
FI 1.9S85. Monday's fixing' level 
was FI 2.0050. ^ 

TOKYO— The dollar chided at 
Y193.35. unchanged from 1 Mon- 
day, when it fell sharply . on 
news of the OPEC oil price rise. 
There was some intervention to 
support the U.S. currency by the 
Bank of Japan, but the' 1 dollar < 
was generally stronger. ’ rising 
from an opening level of Y192.50. 
The highest level touched, was 
Y1 93.60, amid reports of : active 
dollar buying for import settle- 
ments. ■ 

«. .s. « >12 

Canadians 10^ 

Guiktfr fils 

Bclfiiui F S 

n*awi k a 

I » Mart s 

r.«. B 18 
Sian. JV*. 8 
Un TOl* 

I Nrx-cn- It. 7 
Preneli Ft. 91* 


, 1>a ( fii 2 j 

I AiMruikh^ 4ifl 
dnlu IV. | l 

SJ040.Z.BJ80I2.B090-2.0 1 18 
U7 78-2. W 40 i2J8 Sfi ■ 2. 3860 
M&-4.W I 1JIR4JM 
U.U-U.K bt.25-fiJ.4a 
10.21-18.42 iiaajJ-Tfl.lli 
fi.fiB-i.7S ; 5.70-S-71 
. 141. 18-142.00(14 1. 16 14 1.50 
1, £67-1,677 l 1^67-1.689 

6.434- 8. £4 i 
27. 06-17. SO 

• 8.668.70 

| 3 JS 44 .M 4 

B*lgi>n un ii lor ccinvinibli francs. 
Financial Irano 53^5-59.36. 


One mniih i %|iju |Yimvui,aiilib' % pju 

i } 

0JB.fl.15r-.imi 1.19 jD.B7-Q.57r .|.ni : 1.23 

8.68-B.M c-iroi. 2.77 !l.«-l JB..,.iri, 2.27 
Ua-M r.|iai I 2,25 2ie*Ss6 c.pui 9.13 
28-11 . > 9,11 Iffl-fiO r.,,ri 5.77 

fa-81* uitiln-1.43 (Ifijnioiin — 1.07 
32-22 |*f |«" < 9,31 ®i-84 jil |ii n 1 7.15 
60- 10b i-.illa —10.64*150-320 c. tin. -10.1C 
par 75 r.rlia -3.19 [160.250 <-. .In 5.66 
Z-*llr»..(to j-2.16 710 liTO'lr* -2.03 
Sa-l: lire 1^11 • 2.67 5» 34 im |,di 1.78 
3 f 4 .Bf 4 r. 1 n 11 ; 5.90 Iw-Bi r-. in,, 4.36 
2 nrr pm j«»- 1.38 fl-4 .■rt|nu 2.30 

4.154.90? pm: 12.42 ID. SO I0.3B V |.in 10.71 
17.7empiu 1 5.32 '.47 37 i;r.i mil ; 6.20 
4-3 c. [Hu 1 12.72jlO{-Bi c.j, al • 12.41 

SiK-momli forward dollar 1.15-1 05c 
pin, 12-monUi 2 . 50 - 2 . 40c pm. 



Dm. 19 
















spread Close One month 

84.10-84,29 84. 18-84 J2 O.OSe.DBo pm 

1R875-2.0045 1J987S-1.9B90 0.23-0.18c pm 
29 00-29.31 aS.00-2S.02 B-3>>c pm 

5.1280-S.1805 5.1260*5.1285 1-1.50om die ■ 
1-8385-1.8548 1.8415-1.8425 1.22-1.16pl pm 
45 .95-46 JO 48.95-48.10 40-SOe dw - 

70J5-70.64 70J6-70.40 12-36c dm 

829.75- 833.75 829.75-830.25 1. 85-2.601 Irodi* 
5.0185-5.0300 5.0220-5.0240 7-O.SOOni pm 
4.2075^2485 4^125-4^175 IJSWJeOc pm 
4^245-4.3425 43X&-4J&SS 0.55-0 .35 ore pm 

192.75- 193.40 183.10-193.30 1.85-1.75y pm 

.1 3 .46*a-1 3 . G7 5 ,1 3 . 48 ‘a - 1 3. 48 5.50-450gre pm 
1.-838S-1.6550 1.8420-1 .6435 1.63-1 .53c pm 

t U.S. cents per Canadian ! 

Three months p.a. 
t 0,16-0. 19c pm o.S 
I 1.12-1 .05c pm 2.01 
i 79-17c pm 2.4< 

I 350-4ora die -2.9C 
I 3.75-3.70pf pm 7.7t 
t 90-16OC dia -10-Bt 
> 10S-135C d« —6.81 
f 5.75-6.751iradrs -3J( 
! 1.15-0.65ora pm 0 6C 
I 3.30-2,B0c pm ZB£ 
I 1.60-1.40ote pm 2.1J 
I 4.S3-4.53y pm 9.3C 
i 16.50-14.S0gropm 4.51 
; 4.73 -4.69c pm 11.3* 


| December 19 

1 Sterling 

U.S. dollar 

1 Canadian dollar . 
Austrian schilling . 
Belgian Iraoc .... 
Danish kroner .. 
Deutsche Mark . 
Guilder ........ .... 

French Imnc 



Norweqian krone . 


Swedish krona .... 
Swiss lr»nc 



















Unit of 


Bank el Morgan 
Da camber 19 England Guaranty 

Inde x chang es */. 

Sterling 63-32 ~ 4 l-9 

U.S. dollar 83.05 — 9.5 

Canadian dollar ... ^28-76 — 18 4 

Austrian schilling ... 146.83 +15.8 

Belgian Iranc 114.72 +15.4 

Danish krone ...... 118.28 + 7.0 

Deursche Mark 150.24 + 41 9 

Swiss Iranc 196.90 + 84.2 

Guilder 124.59 + 20.9 

French Iranc 100.09 — 5.7 

Lira 54.41 -49.1 

Yen 149.19 + 47.3 

Based on trade woiphicd changes Irom 
Washington agreement December, 1971 
(Bank of England Inden'lQO) 


Argnnttm Pew-... 
Australia Dollar.... 
Vlnlnml U;rUa.— 

Rntil fniaeini 

Greek Uraelima — . 
Him^ Knag Du I Ur. 

Inui Rial 

Knuait DinaPfKDl 
LuxemlKHirit Franc 
iUUaytia Dollar..... 
Nmmt ZmUnil DidUr 
fUudi AraMa lRval. 
Mnpapjre Dullar... 
Sr.nili African Hand 

| 1.983- 1RB6 | 
I 1.7460-1. 7520] 
I 7.9450- 7.9550 
4D •40-4-1.64 
4.3500-4. d6I0< 
4.3 850-4 .4344 


0^722-0. 8734- Kclgl'iui 

5.9860-3. 900ft/ VnniBrfc 

20.10-20.72 jFmnrtr 

S 5 . 96 - 36 R 3 Germany 

4. 7830-4. 7860: Italy 

73i*-75i- Jbihd 

0-2691-0.274 lLVd lierlend 

29.00-29.04 IXnnrav 

S. 1 750-2. 1 770:i \itutgtl 

0.942 1-0.945B-Spain 

3 . 3084- 3 3582 J .*< a- 1 1 ze Ha rul.. . 
2 . 1 620 - 2 . 1 6 30;i:nite.l btatea.. 
0.8706 -O.BSST.Y imi«la\ la 


[ -Note Kate* 

. S9i;-60U 

I 10.38-10.48 
•I 8.46-8.56 
.' 3.66-3.76 

•! 1630-1680 

387 397 
' 3.97-4.07 

' 10.05-10.20 

.! 14+148 

1 41-44 

Bate slvcn for Arsentln* Is free me. 


Deo._lB (Founrl attruufjj LJa.Diuiai , Deal sifManarhf JKfeiiCot- leu 

.:':Pound aierHpe ” 1:. . \ .2.010 j 3.705 ‘ ....389D 

•ir.S. Doltar - - a498 ; •{ -■ 1 . - . J - 1.843 - 19^5. 

- T .'Pentarbe mark - ~ 0.270 ■ ■ \- ■ 0.543 j ID5D' 

^Japanese Yen 1J300 2J71 j 5.167 J 9.524 . . ; 

1.179 I 2 '370 V" 4,388 " • ■45&6 < - 

'Scln Franc 1 -• 0.303 a609 1.133 


> UliU7< Cl U I HUVI 

' I. UkuiM Lhj>‘MI J 

2 384 
1.186 j 

•i«r#Zl mu hMih 

H"-. ,■% J J 

' > tv ‘ 

o m 

■JJutnh Guilder 
Italtan Urn 1.008 

CauiafUriDWIUr- ^ 
'Wlj^Traha -108. 



+~ - 6.352- 

■ 163 2 : -J? 

> 667^r • ^ 

, 3.658 ' 
-- 14JS4 

. 1.3S4 

- 15,658 


I Jatmie-e Ten 

,*r; i-'N”. [JThe fallowing nominal rates were quoted for London dollar certificates of deposit; one month 10 . 96 - 11.06 per cent; three months 11 . 30 - 11.40 par cant sia 
. -'--months 12 . 00 - 12.10 per cenr. one yeer. 11 . 65 - 1 . 1.75 per cent. 

- 1 'A .. Long-term EirrodofJar- deposits; Two yeers per conr tbraa yBers 1CP» r 10S per cane four years 10-ltP* per cant: five years per cent; nominal 

; \ v'cioaing -rates. - Short-term reus dto call far starling. U.S. dollars and Canadian .dolls is: two-day call far guidsrs end Swiss francs. Asian rates are closing 
. 5 . rates -m -Singapore. , 



Fed funds rate tightened 

1 t*iv The Federal Reserve Bank sig- 
.. ; . nailed 2 possible tightening of 
j- , ;; monetary policy by making over- 
r >v night reverse repurchase, orders, 
^ i JiTrith . Fed funds trading at 9t 
;; i'.^Twr. cent The latter were 
:: ■ quoted in - later:, trading at 
‘ v ;^91fi-i6ths-10 1-I8th per l cent 

[i Treasury bills fell, with 13-wwfc 

- u ' 9.11 per cent against 8.24 

.^per cent late on Monday, and 25-. 
.-u+^fceek bills at S.S3 per cent Obe- 

- “ -_^year_ bills eased from 934 per 

• *. to gfi2 per cent.' • - 

i; - : i FRANKFURT — Call money eased 
, • ) r slightly from 3.45-Sfi5 pff. cent 

* ^ *r ;'oa Monday to 3^5-3.45 per cent 
: i. ; “Tine, three "and r six-mbnth money 
; it/again shared the common rate of 

- per cent: while 12-mohth 
• money was quoted at 4.15-t3 per 

I ; -^ent compared -with 4fi-4.3 per 
: -c*..i»nt previously; • 

! PARIS — Interest rates, wefe 

generally easier where changed, 
with call money remaining at- 
6? per cent, while the one-month 
rate eased to 6&-6U per cent 
from 61-63 per cent Three- 
month 'money was unchanged at 
6J-6J per cent but the sjx-month 
rate fell from 6 1-7 per cent to 
612-6^ per cent. 12-month 
money was quoted at 7*-7 per 
cent, down from 7i-7| per cent 
on Monday. 

BRUSSELS — Deposit rates 
for the Belgian franc (commer- 
cial> showed a .firmer trend 
throughout One-month deposits 
rose to 9VSr9H per cent from 
9J-9J per cent as did the three- 
month rate from. 9J-9J per cent . 
to 9HH per . cent. Six-month 
deposits were quoted at 8J-9 per 
cent compared with 8£-8J per 
cent, while the 12 -montb rate 

firmed to 8J-8J per cent from 
8f8| percent previously. 

\ ‘AMSTERDAM— Interest rates 
fell, yesterday with call money 
at - lOJ-lOf per cent compared 
with -la-11 i per cent on Monday. 
One-month money fell to 105- 
10J per cent from 103-11 per 
cent while the three-month rate 
was' quoted at 10 l- 10 i per cent 
against 10i-I0| per cent The rate 
for six-month money declined to 
9 Hi per cent from 91-10 per 

Milan — interbank money 
market rates were unchanged 
throughout, from 10H0} P. er 
cent for call money through to 
per cent for three-month. 
rHONG KONG — Conditions in 
the money market were steady, 
with call money at 9i per cent 
and overnight business dealt at 
Si per cent. 



Bank of Rngland Minimum 
Lending -Rate 42} per cent 
(since November 9, 1978) 

Day to day- credit wqs in short 
-supply :in -the London --money 
market yesterday, and - the 
"authorities gave . assistance- by 
,>uying a, very large amount of- 
:!Treasury bills and -ai;. small 
.number of corporation bills, all 
./direct from the discount houses. 
-Total assistance .was termed as 
very large. Discount booses were 
--Paying around 114 per-cent for 

secured call loans at the start, 
and closing balances were taken 
down to 10 per cent 
The market was faced with • 
slightly, run-down bank balances; 
and. a fairly large increase in the 
note circulation. There was also:' 
a moderate net take up of 1 . 
■Treasury. ■ . bills . and local 
authority bills. 

■ Oh the other hand there was a 
. fairly large : excess of Govern- 
ment ■ disbursements over 
revenue. transfers to the 
Exchequer.^ - 

In the interbank market over- opened at Ui-llf per 
cent and dipped to 11 per cent 
before news of a shortage pushed 
>ates : hp - to 111-11* per cent. 
Mpney then tended to cheapen to 
103 per cent although closing 
.-balances, were taken in the 
region .of Hi pec cent. Longer 
term -rates showed a slightly 
firmer trend, reflecting nervous- 
ness over a. .possible increase in 
U.5: interest rates. 

Rates: in the 1 table below are 
nominal in some cases. 


Overnight - 

2 d*y» mjtice- 

7 dayn 

7 risya no tic*.. 

Three months.— ' 

Two yen.... 

Certi Eeat® 
on dnpMlt 

| .Local . . 

. Iaitet*nk 1 Authority 
• j defiueiu - 

Inert A nth. 


‘ House 

















' lD3»-HJ*j - — 

■ 117b- 

ii**Hi7 8 is ■ 

*. 12-12 lg 12- 12 1 b 

ilSll’l 12^12^ 

12»B-123fi llTs-lBlg 
12.1211 ■ - — 
ii?b-xbi«. nvia 

|. - 12-135* 



12-121 e 








. iais ’ 

. lau 
. 101« 





. 10-1 lit 

-. .113* .• 

11 A. 






1 1 1 1 1 



Gold rose S3g to close at S216- 
S217 after a fairly active day. 
The metal opened at $2163-217. 
and was fixed at $220.35 in the 
morning. It touched a high 
point of $ 2214-2221 just before 

{ l>er. 19 ": Dev. IS 

Gold BnU Inn 1 * lUicil 

. UUliCC) _.J . I 

Ck*e BUS-217 '8*1*4-211; 

OvenhjR -S*1Bi 2I7 .S21li-S18* 

Horn tug fUto* 5289.35 S112.20 

• >£108.249) .|£ID6.7Wj 

Ahenoon llxiog....|S21B30 iSZISJO 

UC107.4S2) ,i£ 108.079 1 

Gold Coin*-.. j . 

domeHUrally 1 

KninmukL $231-233 ,S22«-226i 

U£115-I1B1 ;(£112-MS) 

Xmt Sovereigns MO W AfiSj-ffi: 

iifiSli-52. 1 ) Ii£i14-Syi 

Old Sorerelgus. IfiBI J45J 18804-624 

IlfifiBS-ili) j (£301-311) 


loternatiansllr — • 

Krngienend |S225*-227i jS£19-221 

■IJC1 123-1 13fi]-r£U19i-1101> 

New Sovereign* IS57f 59J 1 558-58 ' 

f£283-2Sfl 1 (£*0- 231 

Old Sovereigns SB1J-K3 ;Sfi04-B24 

f£30i-31fl ICiO'.ail) 

S£0 Keclw S 29 5- 237 S290-2S 

S10 Kult» S1B0-165 .S16S-1E4 

81 lfcglg.. S18B 113_ »08-l»Z _ 

lunch, but fell quite sharply to 
$216.30 at the afternoon fixing. 

Id Paris the 12} kilo gold bar 
was fixed at FFr 29,800 per kilo 
($220.16 per ounce) in the after- 
noon. compared with FFr 29.950 
f$221fi3) in the morning, and- 
FFr 29,400 ($214.63). Monday 

In Frankfurt the 124 kilo bar 
was fixed at DM 13.100 per kilo 
($220.32 per ounce), compared 
with DM 12,720 ($212,720) pre- 



V. . Local authority and 5 nance houses sewn days" notice. .- others swan days .lined. v ^Long-term Inert authority 
■ . ' .mortgage, rates nominally throe yeej^ . 12 »»* 124 ' Drt*’ cent: tour yeer* 12 ^* 12 ^ per-cent;_ fare years 12 V 12 7 * per cent. 
- 4 *.Banfc 4 u|j ram; m . table ere buying rams tor prime paper. Buying rates far tour-momti Tsank hills 1-2 per cent;- faur- 

"lonth trade. bills J 2 \ per spnt- ’ • . - . . e * ’’ 

■ Appnuonjste selling - mtee for 'one-month Treasury bills 11 *u eonu 1 wim^montii 11 »» par cani; threa 

months 11 " 4 i- 11 “V .par esnt: 'Approximare Yelling raie for one-monih bank mils .11 »;■ per cent wro-momb 1 t“u dor 
cent and thr*#-month 12 per cent- dne-mourh trade bills T 34 per o«n«; two-month 12 }. ger cent: and also three-month 
' 12 * per.ieAt .. .. 1 \" v" . . T' 

- . T ***** House Bairn- Ortas (pushed the Finance Houses Associatlonl 1 1V ptf- rant, (rent Decem ber 1,1 1978. 
O earing Bank Deport* Rates ior . smalt stuns -et aoven- deys* nphee 1g 'per cent). Clearing Sank Bass Rate lor landing 

.. 12?* par can*. Treasury KUai 'Araraga tender roles of discount H.STSS per cent. 

— 1 Treasury Bills ( 26 -waakj 


Discount Rate 


One month ... 


Discount Rata 


One month 

Three months 

Six months 


Diacognt Rate 

Cali f Unconditional}- ..... 
Bills Discount Rata 

Companhia do Metropolitano do 
Rio de Janeiro 

Medium Term Financing 
Unconditionally Guaranteed by the 

Federative Republic of Brazil 

Arranged by 

U.S. $200,000,000 Loan 

Managed by 

Banco do Estado de Sao Paulo S A. Bank fur Gemeinwirtschaft Aktiengesellschaft 

London Branch 

Bank of Montreal Canadian Imperial Bank of Commerce 

L DG BANK European Brazilian Bank Umited-EUROBRAZ 

Deutsche Genosscnschaftsbank 

The Mitsui Bank, Limited Scandinavian Bank Limited 

j Sodete Generate The Tokai Bank, Limited 

Co-managed by 

Banco do Brasil S A. BankAmerica International Group 

The Bank of Nova Scotia Group The Sumitomo Bank, Limited 

and provided by 

American Express International Banking Corporation Arab Latin American Bank 


Associated Japanese Bank (International) Limited Banca March Banco do Brasfl SA - London Branch 

Banco do Estado de S3o Paulo S.A. Banco National S A. (Brazil) Bank fur Arbeit und Wirtschaffc 

Banco do Estado de S3o Paulo S.A. Banco National S A. (Brazil) 

London BfiP r /* 

Bank fur Gemeinwirtschaft Aktiengesellschaft Bank of America NT&SA. 

London Bunch 

Bank of Montreal Hie Bank of Nova Scotia International Ltd 

Banque Internationale pour TAfrique Octidentale “BJLA.O” Can 

The Daiwa Bank Limited Daiwa Bank Trust Company 

Bank fur Arbeit und Wirtschaffc 

A tom gsdtodnft 

r&SA Bank of British Columbia 

lLtd Bank of Scotland 

r^tnadian Imperial Bank of Commerce 

Soditfi Anonym? 

In ternational Commer cial Bank Limited 

European Brazilian Hank Limited International Commercial Bank Limited 


Kuwait Pacific Finance Company Limited Midland Bank Limited The Mitsui Bank, limited 

National Bank of North America Partnership Pacific Bank N.V. RoyWest Banking Corporation Limited 
The Sait-ama Hank, Ltd Scandinavian Bank Limited Sotiete Gen6rale 

Societe Generate Alsatiense de Basque, Strasbourg The Sumitomo Bank, Limited The Tokai Bank, Limited 
The Toyo Trust and Banking Company, Limited UBAN-Arab Japanese Finance limited 

Union M6diterran6enne de Banqnes 

Agent: European Brazilian Bank Limited - EUROBRAZ 

This announcement appears as a matter of record only. 



Companhia do Metropolitano do 
Rio de Janeiro 

Medium Term Financing 
Unconditional Guaranteed by the 

Federative Republic of Brazil 

Arranged by 


U.S. $60,000,000 

Banco do Estado de Sao Paulo S.A. 

London Branch 

P a ri sian Imperial Bank of Commerce 

Deutsche Genossenschaftsbank 

The Mitsui Bank, Limited Sc 

Managed by 

S A. BankAmerica International Group 

mmerce The Dai-Ichi Kangyo Bank, Limited 

European Brazilian Bank Limited - EUROBRAZ 
Societe Generate The Tokai Bank, Limited 

Union Bank of Switzerland 

and provided by ' 

Banco do Estado de Sao Paulo S.A. 

London Branch 

Canadian Imperial Bank of Commerce 

Bank of America NT & S A 


Soctote Aaonyme 

The Mitsui Bank, Limited Socfcte Generate 

The Dai-Ichi Kangyo Bank, Limited 
European Brazilian Bank Limited - EUROBRAZ 
s Generate The Tokai Bank, Limited 

Union Bank of Switzerland 

London Branch 

Agent : European Brazilian Bank Limited - EUROBRAZ 

■- O'*-/ • A’.*: .* 

~ -~ ~ ‘ J+ -'rir . S - r' . 1 



1. :'-• ."- • V - . > ’.ITi 

Companies and Markets 


T;‘ : . oT 

Wall St. stages modest technical recovery 

HELPED BY nows of an IBM 
stock split and dividend increase. 
Wall Street managed a modest 
technical rally yesterday in a 
fairly large business, following 
the previous day's sharp slide on 
the OPEC oil price increase. 

The Dow .Tones Industrial 
Average, down IS points on Mon- 
day. closed -.34 firmer at 7S9.85. 
The NYSE All Common Index 
recovered 38 cents to 85'd.oS. 
while gains exceeded declines by 
794 to 645. Turnover totalled 
26.06m shares, down from Mon- 
day's heavy volume o£ 32.90m. 

Analysis said, however, that 
-investors are sull concerned 
about the large OPEC oil price 
increase, as well as general 
inflation, interest rales and the 
pare of the U.S. economy. 

In other news yesterday, the 
li.S. balance of payments deficit 
widened in the third quarter to 
$3.32bn following a narrowing 
of the gap in the second quarter. 

The nation's mutual savings 
banks reported a S125m ner 
deposit outflow in November — 
the first such outflow during 
'the month of November since 
statistics were first compiled in 
1947. The Mutual Savings Banks 
Association blamed the Federal 
Reserve’s credit-tialuening moves, 
whicht it said had pushed up 
short-term interest rates and 
attracted money out of savings 
accounts. It warned that more 
net deposit outflows could be 
expected in the months ahead 

unless the Administration's anti- 
inllauon programme takes hold. 

Actively-traded IBM jumped 
US to S2Slj on declaring a four- 
for-one stock split and a 
quarterly dividend raised to $3.44 
per share from S2.S8. 

Boeing, also active, rose lj to 
$6$;. the company said it has 
signed a contract to sell three 
747 jets to China and has 
granted options on two others. 
In addition .it has received an 
order from Air Canada for eight 

Coco-Cola, which announced 
that it will start selling soft 
drinks in China from early in 
1979. gained I to S43J. 

Carrier picked up 21 to $24i. 
Uui>ed Technologies on Monday 
started paying for the 17m Car- 
rier shares acquired in a tender 
offer. United Technologies added 
1 at 6371. 

The Oils sector was notably 
firmer. . Marathon Oil improved 
]; to $551. Standard Oil of 
Indiana SI to S54I, Getty Oil It 
to -S35j, Sohi.o lj to $41i and 
Atlantic Richfield $2 to S56?. 
Bulb Aren and Sohio have large 
interests in Alaskan crude oil 
produciino. which could benefit 
from OPEC's 14.S per cent 
increase in oil prices. 

li V Industries moved ahead 
2; to 322. The company 
announced on Monday the sale 
of its Federal Pacific Electric 
unit to Reliance Electric for 

about S345m. Reliance put cm 
\ to S35. 

Chicago-Milwaukee gained lj 
to $7{, Hewlett-Packard lj to 
SB7J. Tried y lie II to $93 j, Kodak 
li to $58 j, Polaroid 12 to S4SJ. 
Merck ST to $63j and Smithllne 
H to SSS1. 

Value Index regained 0.70 to 
146.38 in a far business. Volume 
3.56m shares (4,17mj. 

CDI gained Slto S7J. The 
compjuny has settled a suit with 
Hardwicke over a proposed 

Atlantic City casino project 

Actively-traded Golden Nugget, 
however, receded $1J to S16i. 


Most sectors managed to 
recoup some ground in a 
moderate early business, with 
ihe Toronto Composite Index 
regaining 3.7 to 1.273.8 at noon. 
Oils and Gas rose 18.2 to L758.7. 
Golds 19.3 to 1.41S.2, Metals and 
Minerals 3.4 to 1,061.3 and Banks 
0.13 to 306.56, but Utilities shed 
0.72 more to 193.26. 

Hudson’s Bay rose 2 to C$20}. 
Simpson's said it is withdrawing 
opposition to a take-over bid by 
Hudsoon’s Bay. Trading in 
Simpsons remained halted. 


Following Monday's sharp set- 
back. shares put on a mixed per- 
formance yesterday in active 

dealings, with fresh liquidations 
in high-priced stocks more than 
offset by -renewed buying in 
large-capital issues. 

The Nikkei-I3dw Jones Average 
recovered slightly by 4.S6 to 
5.983.32 and the Tokyo S.E. in- 
dex rallied 0.23 to 445.61. while 
volume expanded sharply to 
470m shares (220m t. 

Steels, Heaw Electric Mach- 
ines, Textiles and some specula- 
tives were firmer after falling on 
Monday, but export-orientated 
issues were generally lower fol- 
lowing the fresh yen apprecia- 

Fisheries,- Foods and Pharma- 
ceuticals were inclined la har- 
den on institutional buying. 

Nichiro Gygyo put on Y4 to 
Y120, Nippon Steel Y2 to Y130. 
Nitto Spinning Y6 to Y304 and 
Toyama Cheinical Y33 to Y968. 

However, Sonv lost Y10 to 
Y1.490, Victor of Japan Y30 to 
Y 1,070 and Ricoh Y15 to Y596. 



|w. • II.-.- 
1* U 

AMkiII 1x1 1- 


AfHUt l.'li'XI.A 

Air| , ii«liu , i- 

• Akim MimiiHiilKii 


A liny. 



A I lit- 1 M.m— ’ 

A Hr- ChalniMpi.... 

A U A X 

A memiiii H-f-... 

Ailirr. Airlmr- . | 

Amor. Rraihif. .. ( 
Ami-r, Un*»-.l . 

Aim-r. i.'hii • 

Amer. >. vmi/ininl 
A iiilt. Ill-I • [VI. 

Awer. Klo-r. I'iih 

A infr. K • | H f— .. 

A iiirr.H'ime 1'n*l 
Aini-i. Al««li«nl ...| 
A liter, M.iiim-.... j 


A«hl*n>t till 

All. Uu-hiielil 

Allln UlU 



Avtin I*i .'ll iii-r*... 
HhIi. Im* I-.Ihi.-I... 

Raus-or Hum* 

B*nk Amenra.... 
RmtkHr, Ti. .VY. 

Burtk-r «>ll 


Bonn-.- F.*»l 

Beer.-n I link ' num 

Bell A Hi'well 

' R-rvlix 

* oil!- *M" 

Ti.'tlileli^ni "•Iwi. 

JBlm-k* fe Uei-ker.. 


JM** t>stnii* 

Km leu 

Kira Wimi-i 

Hmillll Ini 

ltn>iin "A* 

Bristol Mien*.... 

B.lVr A Dm K. .. 
!lr.*-ktvav I ■ In-* ., 

Central A e.lV... 

IVrtHini it\I 

i.Jew/w Anvm/i .. 

I hami'ion lnlw. 

Llntne Maulistuii 

l_l|PmKMl Bfc.NV.i 

(,'liesein-uii I'omi.. 
i'he«le Ay*if-m.. 
Lhlowu Uriiliii- .. 


• 'me. AliUu.-r”n.... 

55 ij | 55 

50Sn i 506* 





19 7g 
21 *. 
2Si fi 
49 1( 

titles ServKe..... 



V-’itv lnie«nii£.... 

13l = 

13 ta 

(.'IcicUihI i.nff.. 

25 1* 


i.'.x»i i*Ih 


Colima J*mIiii 



Culling Aiunmn...' 



L'umml.ia Ihif.... 


25 U 

L'uliiinliui l'h-t. ..- 

22i H 


Com.lll«k-n,.il Am 

16i b 

16 7* 

r..nihiiM:iou Kny.j 

3 S)* 

33l = 

C-jnibustliiri K.| . 1 

9t a 




V'.imm. staler! it*.' 



l.'ompol.-r S. ihiil-.- 



CV'Uii Lit* ini>. ... 


35 1* 




i V...' 

23 7, 




21 in 

I'WIMl >Hl t.H- 



LiiDJiimer 1‘mrerj 






LVintint-nlal Oil... 


L’omiiientBt Ick* 



(Vintml 1/Hta 


L'uopvr IxuIuf 



tni-.’ Dr«-. 

Ml* I; 19 • in 

i. ••iiuiia 53 -a t 53i- 

«. I*« I hi ' m* 1 1 » 'hi 49 •« ' 487* 

■ IHIIr ■ 23 5* 23 >i 

{’■i*-lri \ni i 241- 241; 

i. ion ii /.Hl(i-|4 j|i-Ii; 301; . 50J( 

i. i ini hi in- Kiib iih- 32 32^i 

L ml i- * W i igM ... . 13>a 131* 

I urn ; 28 )b ( 28 * 

IlHIt lllllu-ll-lv— . ' 316*1 1 ill* 

IJivn 3 Jig ! 53 

lirl Monte 411* 391* 

I Mil mu 9 , 9 

lii iil'.piv Int 145* 147g 

lii-tti.ii ., 157* I 14 

l>miHoihl Stimuli. 19?; 19 7g 

|li.-U,|i|io|i«. ' ZOi, , 20 U 

iliuHHi Ki|i«i[*..... 4flw ' 48 U 
lti-m-, • VVutii . .. 17*1 | 371* 

Hu-..** l'nr,.'n .... 42 421* 

I inn CIii-iiik-h 1 ... liSt; 25 

l>mvn 28 sg ; 28 ■* 

I'n-.rr 36 353* 

niifml 1211* j 121 

Kiiotn I'lii-hHr..., 21 20Sfi 

KhM Airliner 8.4 ■ 87* 

FJi-lman h'xlnk.. 5B/ 0 , 57^» 
tali. 11 34>e , 341* 

K.U. if. 27 lg 1 271* 

Kl I'n-u Nni. Mm 15 i 15 

Klim 26!* I 26)* 

Kiuhit.u lvlc.-lri>-. 34 T I 341« 
Jill 'i-i .\ Air tr lylil.' 191* [ IBia 

huiltan 34U , 35 

K.AI.1 2.>a • 23* 

Kuut-lliHrii ■ 27 13 | 21 >a 

K-iiwik 23 'h j 23 3* 21 ’a 21 > 4 

K:.vii 49)* J 481* .•'iiii-ih 281* i 271* 
► •fl. l>v|H. .’Mi.rv? 311* j 31)* 
Hri-U.m? Tut-....' 121* - 12 ‘4 

K-i.A»I.Uf.-!-.i».. 27 I 287* 

riHMVHH • 13.’i . 14 

FlnHk-ilt- . 271- | 271* 

Fl-iri.l* I' S0l; : 31 
Mi hii 311* I 501* 

r.M.«: • 22-.* : 23 

K....I Mol. II- 40 . 401* 

K. .ivin.n-L Milk 19 . -19 

30 <i 31 

Krxuklin Mini .. 51* ; 5** 

Fivhi-cI Minimi. 31 . 30'* 

Kraiilmiit 267* I 26*1 

Fiiijiih I ii. I ....' 91* [ 9 

li.A.K 101 2 ; 101* 

1,111111111 42 ; 42 

iaoii.Ainei.liiv..., 10 10 

ri.A.l'.X i 24 ; 241* 

lf«i. t*Wt- .' 14.5* 341* 

lien. l)riuiuiH>..j 76 : 75i* 

lien. Film'll 46*g j 46 U 

I . hii. K.»»ls • 3 lii | 331* 

liviieml Mill- j 291* 29 

■ •viil-nil .MiHuil..- 541» 547* 

lieu. I'll!.. I.ul... 18 . 175« 

Upii. Siutijti 25 251* 

l.en. Tel. Elect... Z8«« \ 281* 

(4. -ii. Tlie 241* ! 24 

iieiiew.-' 3 1* ! 31* 

llo.r^w I’wilic... 24S* 1 241* 

iimoouivc 26?s ; 25>* 

ticll) i.'il i 351* | 331* 

li illdlH ; 25 (251* 

liraulru-l) U. K. ...1 171* j 171* 
i.iaiilvMr I’iiv-... 15lg 15)* 

in-uni 27 1* I 27 

limce W.ll. 26)* I 261* 

[■rt.Ai mu Cni-liw 51* > 5i* 

tni. .'••»! h lorn— 2218 . 22i* 
iiit-yli.iim-i Hi* 111* 

I. iiill A ll'n-irril. | 13li 13ij 

'.nil Ui. ; 241* J 241* 

Hh| ilairii.n 60U ( 596* 

Hbhiih M <iiiiii* ...f 29i» ] 29ia 
iJiirniM-lirc-je!.... 151* I 151* 
Uhiii- l.-nri-u 3H* | 3H* 

II. -.n? ti 4 | 39 ?* I 39?a 

I ll.n.l lain j aa ! 27 »* 

MuuIhII l*Hi-knn<. B1'-< - 85a* 

Iiiiih 17U t 171* 

Hume: In ke 32 • 32 

H--iu-\ well 661* 1 65 

H...ier Ill* j 111* 

H.a-t>-*'..iv. Ani-i 28'i • 281* 

Hoiiat.-ii Shu I,*-' 2tl* | 21«* 

Hun' -lli.Ait.'hnt 111* 151* 

llMiiun -K.F ..... 15s* j 16'- 

Ia ln.lii.|iA»... 2318 231* 

IN A 384a - 376* 

Inyemnl ISrihI. 451* 45 

lulHn.l .-iL'el... 351, I 35'* 

I II 4 * . H'a 

IBM 281.87 270.12 

furl. Flavour- 2J'* . 227* 

lull. H»r>e?»e».. • 32li< , 32ag 
Inn. Mink, t'tieml 361* ! 36 1* 
Inlt Mnuilonil-...) 1712 ' 176* 

liKi 144* 1 147* 

lull. l’nf«-r 1 36)* j 366a 

Ini-. 9U , 91* 

lull, lei A In... 271* 267* 

town IWi 1 37 1 361* 

II liucrziHiiiWia'. 1 101* ’ 10i* 

Jim Mallei 27)* . 271, 

Dw. • Dei-, 
i* 18 

B7 -* • 85 a* 
171* 171* 

32 : 32 

661* 1 65 
Ml* j 111* 
28’= 1 281 a 
21)* ] 211* 
U? g - 151* 
15&a j I 61 - 
231* 231* 

384* , 376* 
45lg 45 
35i< I 351* 
111* . 11>* 

281.87 270.12 
2Ji* : 22r s 
32i h ! 326* 
365* I 361* 
17ij ; 176* 
144* • 147* 

36)8 , 366a 
9i* . 9i* 

271* 267* 

31 1 36i* 

10lg ’ 101* 
27)« . 271] 

■liilinMHi JotniMin. 
-JiitiiiTin 1 ^. hiiiuI. 
J<i\- llii nniHi-t ur"!> • 

K..Unr Cmiv. • 

hjnrer InHi i^iriw' 

Kmiiurr ^<ecl 


Kerr jlcfire. ' 

Kirtile Wnller. 

KuuK>eH> C/irt..,' 

Kl (||*T- 


I K iT-aer 

kn.wiy Trans... 

Levi .>trnn« 

LiUiy On. _ 

LiKlien l.iron|X...‘ 

Lilly iKli. i 

Ln ton Lmlustne»; 
UaKheivI Aircr’Hl 
I Lauie alar 
Lainu IsIhimI Lt-I.j 

1 LaHilHH/iH leDii...! 

|ji)in*>» ! 

Lucky Stores 1 

].ykm Corpn 


Many It. H 

Mir*. Unnnier... 1 

Mnpn I 


Man4mh Ku-M.... 1 

I MevDe/*- shore*: 

MUA..- 1 


MaOunncli Dou*! 

XlaNniw Hill 


Jtwvk 1 

Memit Lyncii....! 
Mem lVtculL-imi.} 


Minn Minn A MIr; 

. M.iliiOiq I 

1 .Mf.,nstMt/.- 1 

Morsna J. I* 


Mnrpii.v Oil 

Aali*, Oienu-al-.! 
NmUhihI Can 

Ml. l>i--llllt-r»....i 
A*t. tiers lev I ml. 
Nhii-hiai a'teci. .. 

ACk ;■ 

AeiRune I 

Now hiiKiau.t R..' 

Nhu Rnghnnl'lel| 
Xiajaam Mutniuk; 
Mt|(in eihiire.... 
N. I. Industries 
North Nat- Ua»...| 
Athii. aiHlea Fwrj 
At Invest. Airliner! 
NThwept Unncuru 
Norti-n Simon ....( 
Ucciilenul Petr.)I] 
U*iJvy Mather...' 

Ohio krtiaun J 

( )ll(t I 

Or we ll. -shi|c...| 
(Juror L<irnliif:...| 
i.Iudds lllinoir..... 

I Mei lie l>* I 

1‘m ilie Lsjfhl inc..' 
i*kn For.* U 4 
I'hhAiii W orld An! 
l%lker Hanillllr.-I 

I'ealmlv Inti | 

1*01111 I 1 " A L.... .. 

Feimev J. U 

I'enn/.-.ii ! 

I'eni'iea lima 1 

VeopIeaCia* ] 

- | 


f'firer , 

riwiiH u«iii« ble.l 

I’UitlpMin-rta | 

I'hillipa I’etro'ui.j 

I'illsl.ury 1 

Fit-ney- Bowes ; 

I'iilalnn - 

Plesaey LM A OKI 

I ’olan. hi : 

Cut inner 

ITT; IfiiKr-Erfe*.., 
I'na.ter UamKiie-.i 
1'iils. "H?r. KI0.1... 

Hull man | 

i’nies 1 

liapui American..' 

KC\ 1 

lio(nihiii' -sieei....J 

He*nt* I nil 

. i 

Kevnnkl- UenU-.j 
■ Iteenolrt- R. J. ...[ 
KirliVm Merrriii 
1 Krt-kwell Inter...' 

IkthiTi 3 ■ Baas 1 

tfnyai Dui.-b J 


Hntii' logs 

Kvler Sy«iem.... 

■SafeRn.T Store*... 
Sl Joe Mineral*. 
St. Regia niper.. 

NinM Fe l nris 1 

onu. invest t 

Shxi.hi Itirt- 

Drhlita Hrewiug ■ 
ar-tlluiill truer. ... 


■H.11CI H*|er. 1 

Scoril Mrg ( 

K.mrtOer Dun.C«i.i 

Sen tonrainer... 1 

Seagram • 

Seflrle 1O.D.1 1 

20S* I 19*8 
26la [ 263* 
12 ! ID* 

34 | 33)6 

48)* , 463* 


Vcmui Huai era.... | 
lean Itvl ni ! 

lewi'l'll A Uh>..| 

Tesav l> Mill 

Times Ina 

Tiuie? Mirror | 



Tran-menca " 

Iiiiiimi, | 

Tran Union 1 

Tnui-witv lntrn..| 
L'rsn Word Air J 

’lm veers 

'1 Tt-Cnm mental.. - 

Irihm Oil .t ijts.. 


al*lil.ontin-\- Km! 

L.-A.L. _,) 

I .1111.0 


Jan. Apr. July 1 

Series Vai. Last Vol. Last ' Vot. Last ' Stock 

F.370 3 

F.380 1 

F.25i 4 

F. 27.50 

F.30 - 

F.32.50: - 

s-50 3 

F.140- - 


F.I60' -- 

F.32.50’ - 

f:35' - 


K2«0: 1 

52601 10 

52801 n 

S300j 5 

F. 120 50 




F.l 08.90, 15 

F.110 1 - 

F.Z5; 655 

F.50 - 

3 5,80 

1 3 

4 2.50 

5 1 5.30 
10 . 2.60 

Z : 5 

14 ■ 7.50 

12 S.30 

25 . 1.30 
12 • 0.60 

5 j 9.50 
4 J 5.70 

- . - F.37.70 

3 ; 4.10 I 

11 3 ,. 

12 . 8.70 !F.74!lO 

1 32.80 F.375.50 

8 25.30 

- - iS67i* 

3 '14.80 IF. 145.50 
12 • 9.80 I 

9 ; 6.20 ' .. 

- • - iF.32.60 

30 1 2.60 

10 1 2.80 1 „ 

- ’ - ;3271 

3 . 10 iF -116 

6 1 6.20 

9 4.10 [ 

35 3.10 1 .. 

- - .F.106.90 

4 . 1.80 If .83190 

69 ! 0.60 ; " 

6 51.50 f- 479. 10 

1 31.80 : ‘ „ 

SLB S90 2 3s* 


7 IF. 119.30 

- 387)* 

J-f* 1 o» j 

L H.'eiei 1 



L iiuei*i V 



L mull UdiK-or|i...- 



1 .mull LtariiKlr.... 



I in. m I'mnriiHTi-*-; 



L mem Un Ltalil... 



1 nii.n I'n-iih-....* 



Lmnivai • 



Lullnl UraiHli. ... 


7 V 

La Rnilivirp : 



lif > •.V)»iiin 



l'» »li.»e 



L» Sl**i 

2 1 >2 


1. Ul ’ln-hi1iili*;ln.. 



I V llbiii-tlie*.... 



Viruinu bile. -i....' 






5\ nils.-*- Jl nrmv . 



Htllvr-L tun In ii . 



VV aniH -L*mi«r1. 








We-ieni itanum 1 



"niern \ . Amef 



\Ve<.tPi-n l-niiHi...' 

14S S 


Wfillll-ll'*! tlUL-. 




241 5 


Whiripti.* • 



\\ line Um. ii„i. 

16r 4 


M ilium L*». 



M i-i-i ia,m Ui«;v ■ 



With most, investors silting on 
the sidelines after the previous 
day’s fall, the market closed 
with mainly .small irregular 
movements following slow 
trading ' 

However. Stores were notable 
for gains of around DM3 in 
Karstadt, DM326, and Kaufhof, 
DM3.30. while elsewhere, Linde 
gained DM1:50 to DM282.50. In 

: Drr. ; Pci-. 
[ 19 [ 13 

W.kwaprtli j 191* ! 19 

Mvir— : 4 ] 41* 

Xmw ; 5 IU l 501 e 

ZU|«U...- 101: I 10* 

Zenith KwKhil ; 12i£ 12 ig 

U.--j.Trm».4*l9c!0i - l«37 9 

L’STrr»«41*3b.SN t - ,1781* 

t‘.s. 9 (Wbv tiUls.! 9.17j; | 9.23* 


Aidtihi Haper ' 19 >g 1 IB’ 

Agnlro bgte i 6 5- 

AIihd A iuDilol'in: S95g 39; 
Algmnii Bteei _... k6 26 

Aslieht'oi ; 44i* 451 

UankntXlantrnJi 25’s ; *5: 
BhoK NnvaSrtWi*! ?3)n I 231 
Ba-Lc KcHonrMa.. 4.00 i 4.0 
Uoll Telephone...! fa4ig | 65" 
bow Vhiiot lud. i 20)* i 20: 

BH UaOHrta u. ' 19)* 1 19! 

binx-an I 16 I 161 

Bmu-o I 6.37 i 6.= 

L5sjgsi>' l-ijwer.... 39s* \ 39; 
ChiuH.) klMi ....i 137* | 13: 

ttniHda Ceaitoit.-I iliU i 1^' 
Lflniula NlV [*ii, 10 i 9 1 

UknJiouBh Com 29 ’b 29' 

Lh na< la Indue) ... kQ)* [20! 
Can. Poulin—.... 237* 24: 

Chii. HjuJrtc'Jtiv. 257* 23; 

Ugn. *ni|«r *JH_ 71 69 

UtrifngO-Keefe.. 4.40 ; 4.3 
Uo,)dar Aabeau».| 94 ] 9' 

Uhipltalu— 251: J 25) 
Uouunco 80 i* 30! 

cVhu-. batbursl 137* 14 

Cunamnei GaK — I8i* 17; 
.U:*«kA Kwautef 5.00 5.1 

CnaUM- — 11*2 11 

D»nn D#vei™— . 13)* 14 1 

Lleninon Mian... 71 71! 

Dome 877* 88 

Dome tVuuletuu. 89 83! 

Ucniinma Bridge 29 , 28' 

DoniMr. | 241* 24 

Dup.un — — • IBij J 15' 

F*lcim ; ise 28»* 29 

Fnnl MrtatlWi... 7674 I 571 

lleasUr.. 1 . 345* 34) 

Uihdl Xeunkiiiic 113* 111 

(■iiiiUhL'riihiIh... 351* 45) 

HhwUpt fitil.Cmi.' 81* 81 

Uoiuoitei 1 39 391 

Home On ’.V I 44S« 45 

Hudson llflvMiuri 193* 191 

Huonid U»y 301* 201 

HndaonUli.v Uji-[ 514 51 1 

I..V.C - 17i* 171 

lnuuu.i 387* 38= 

I nipeml Oil 235* 23) 

Idio'A' 17J* 175 

Indsl J 124 121 

Inland Nut. 11 11 

lnt'n.v.i*i|eUiw lb 16 
KhIwt Ilewumn 161* 16 

Laiirl Rid. Corp.. 97g 91 

Lrtikw Oim. -B" 4.25 4.2 

Meaid'a 214 2J1 

JbMtey Frfipnuo 93* 9s 

McIntyre. 23 lj 23 1 

Moore Corpn 327* 321 

Mountain MsteH 3.25 3.3 

NonruiH Mine.... 364 36 

Energy... 173* 173 

Kill. Trinvu..... 363* 363 

Mnin*c Oil Si Us*j 28 261 

Uakwixai Htini'u 4.35 4.2 

Pacini- Cupiicr M | 1.72 1.8 

HacliicHein-.eiimj bl)* 1 60; 
pMi.Utn.l'ciii.lnij 36)* | )7 

1'Hiln.i 204 ; Bui 

Pm.1*esLK4rt .".. ' 6Si 6E 
PlA-eLVm.-v i'i-J 1.97 | 1.9 
I’la.^llK-i <-i.-;,int! 254 i 26 
l , riwerLor|«>i«i 'n| 233* ! 24 

Pnw i D)U I ;!)' 

mfi*- .Murui-uii.i 1.27 : 1.2 

iLnn^cr Oil j 15 141 

Itee-lBienhi-ii-e...; 103* 10' 

KiiiAigiini I 331* 33! 

liin-al Bk. ui « hb.I 374 37 : 

l(n\niTni.|iii I 134 131 

.-N.-eiiireWi-...iir l -eii| 8 i 7J 

aeagmni- 303* j 30 1 

alien Chiih.ih I 153* 15! 

alierntl r.i.Mum; 73s 7! 

Sieiviv-U.i. 385* 381 

simp-uu 1 7i* — 

-I eel oi V HiimlH...) 27 lj 271 
Mmillivi. In.n.j 3.65 3.6 

'ier.acn v nnN-M .... 50 481 

Tonnilii Df-m.bk.l ^2 Ui' 
liana (ai,['i|«-La! 17 )j 17! 

Thuih Minim U|)| 84 Bl 

True*; • 175* — 

LuH-u.Ua- I 97* 9; 

L DliIalMWr.ll motl 93* 93 

V.Hiker Hiram ...I 385* 38> 

We*V liHDrj 111* 115 

ffnlnn lid i 224 92 

t Bid. r Asked. S Traded. 

II New stock. 

contrast, Bayer, In Chemicals, 
shed DM1.40 to DM135.10. 

Steels drew little interest 
amid continued concern over 
the steel dispute. KJoeckner 
Werke lost 40 pfennigs to 
DM89.60 despite the chairman's 
forecast of a smaller loss this . 

Public Authority Bonds lost 
up to 40 pfennigs more, despite 
DM 15.6m nominal purchases by. 
the Bundesbank. Mark Foreign 
Loans, however, . gained_ ground. 

Paris . 

Bourse prices were firmer for 
choice in moderate dealings on 
technical factors after the recent 

Observers said the relative 
firmness of the French franc on 
foreign exchange, markets, espe- 
cially in relation to the dollar, 
had also boosted investor confi- 

Trading was only slightly 
affected by a nationwide power 
cut, which delayed the market 
opening by 30 minutes. 

Financial groups, Foods, Con- 
structions, Stores and Rubbers 
were among sectors to move 
higher, but Engineerings, Elec- 
tricals and Chemicals tended to 

La Redoute hardened 2 to 
FFr 552 after announcing higher 
sales and net profits. 

Bail Investissement were pro- 
minently higher in Stores, while 
also ootably firmer were Peniioet, 

- Roche Picarde, Snez, Bouygnes, 
Kleber, LMT, '.Vallourec and 
Skis RosslgnoL ' 

Generate de Fonderie, Sacl lor. 
Bel Ion, Podain, UTA and Paribas 
were among declining issues. 


Further depressed by the over- 
night Wall Street and London 
market weakness, Australian 
stocks closed predominantly 
easier yesterday. An airline dis- 
pute and rhe possibility of an- 
other petrol strike were demostic 
factors also undermining 

Diamond stocks were still pass- 
ing through an adjustment phase 
in the aftermath of the A$5.04m 
sales of Sibeka's 7 per cent 
Ashton interest, a sale which puts 
a value of around A$72m on the 
Ashton diamond project com- 

H0TE5: Oversea* price* shown below 
exclude S premium. Belgian dividends 
are alter wUhholdlru; tax. 

4 PM 3b denom. unless otherwise stated, 
yields baaed on net dividends plus rsx. 
9 Pta 500 dooom. unless otherwise staled. 
■A DKr 100 denom. unless otherwise stated. 
■T. SwFr 500 denom. and 'Bearer shares 
unless otherwise stated. QY50 demon, 
unless otherwise stated. 5 Price at time 
of suspension, a Florins, b Schillings. 
c Cents, d Dividend alter pending rights 


A.B.N. Bank 12J% 1 

Allied Irish Banks Lid. 12§% i 

Amro Bank 121% 

American Express Bk. 

A P Bank Ltd 12 j >5, 

Henry Ansbachor 12*% 

Associates Cap. Corp.... 121 “fi 

Banco de Bilbao 12J% 

Bank of Credit * Crace. 121% 

Bank of Cyprus 12 

' Bank of N.S.W 12J% 

Banque Beige Ltd. ... 121% 
Banque du Rhone el de I 

la Tamise S.A. 13 % . 

Barclays Bank 12£% 

Barnett Christie Ltd.... I3i% 
Bremar Holdings Ltd. 131% 

' Brit. Bank of Mid- East 12i% 

■ Brown Shipley 124% 

Canada Perm't Trust... 121% 

Caj^er Ltd. 121% 

Cedar Holdings 12' % 

■ Charterhouse Japhet... 121% 

- Choulartons 12J% 

C. E. Coates 13 i% 

Consolidated Credits... 121% 

Co-operative Bank "12i% 

Corinthian Securities 12]% 

Credit Lyonnais 12]% 

. Duncan Lawrie 12J% 

The Cyprus Popular Bk. 124 % 

Eagil Trust 12]% . 

English Trauseont. ... 12{% 
First NaL Fin. Corp — 14 % * 
Firsl NaL Secs. Ltd. ... 14 % 

■ Antony Cibbs 124% 1 

Greyhound Guaranty... 124% 
Grindlays Bank 12J% * 

■ Guinness Mahon 124% s 

BHambros Bank 12i% 

■ Hill Samuel 3124% 

C. Hoare & Co 1124% 

Julian S. Hodge 134% 

Hongkong & Shanghai 124% 
Industrial Bk. of Scot 121% 

Koyser Ullmann 124% 

Knowsley & Co. Ltd.... 14 j% 

Lloyds Bank 124% 

London Mercantile ... 12]% 
Edward Manson L Co. 13i% 
Midland Bank 124%, 

• Samuel Montagu 12*% 

• Morgan Grenfell 12 £% 

National Westminster 124% 
Norwich General Trust 124% 

P. S. Refson & Co 124% 

Rossminster 12i% 

Royal Bk. Canada Trust 124% 
Schleslnger Limited... 121% 

E. S. Schwab 131% 

Security Trust Co. Ltd. 13j% 

Shenley Trust 14 % 

Standard Chartered ... 124% 

Trade Dev. Bank 121% 

Trustee Savings Bank 124% 
Twentieth Century Bk- 131% 
United Bonk of Kuwait 124% 
Whiteaway Laidlaw ... 13 % 
Williams & Glyn's .... 124% 
Yorkshire Bank 124% 

f, Members at ui* Accepting Hpv*«* 

7-day depoaus 10%, I -month 
deposit* 10 V/.. 

7-day deposit* on sums of C10.000 
and under 10% up to £25,000 
10i,% and over £25.000 10V*. 

Cali deposits over U.OOQ 10%. 
Demand deposits 10%. 

pared to something like A$25Gm 
that the share market had been 
putting on through its pricing' of 
Ashton Mining and ' Northern 
Mining. CRA declined 7 cents 
more to AS3.38 and Northern 
Mining were 10 cents lower at 
AS1.15, but Ashton Mining, down 
9 cents the previous day, - rallied 
2 cents to 90 cents- Jones Mining 
shed 4 cents. 

Among Coals, Coal and AllLed 
receded 10 cents to A$5.10,- while 
Oak bridge last 5 cents To A$L63. 

Uraniums were mainly lower, 
but EZ Industries, AS2.95, re- 
couped 7 cents of Monday’s fall , 
of 10 cents. 

BHP, after falling 26 cents the 
previous day partly on talk of a 
delay to the start of drilling on. 
the Exmouth Plateau, man aged' 
to recover .8 cents .to A5S-68. 
Other firm exceptiods included. 
David Jones, in Retailers,, which 
hardened another 3 cents to 
AS1.26, and Bundaberg Sugar, up 
7 cents at A83.451 ■ 


Golds were generally ■ firmer 
do Bullion price considerations." 
Dealers noted, however, that 
despite the metal’s sharp -price 
rise, there was an air of concern' 
awaiting the U.S. gold auction. 

Mining Financials mostly- 
advanced in line with gold: pro- 
ducers, while, in Diamonds, 
De Beers closed 5 cents Jtigher 
at RS.05, after reaching. .BRIO. 
Platinums were two to three 
cents harder. 

Hong Kong 

The market tended easier with 
the Hang Seng index losing 4.87 
more to 491.47, reflecting lack of. 
interest and small selling. . 

There were market fears of a 
further increase in interest rates 
as the U.S. dollar continued to 

Hong Kong Bank and Swire 
Pacific “A” resisted the. .down- 
trend and picked up 10 cents 
each to HK$16.90 and HKS7.50 
respectively, but Hong Kong 
Land lost 10 cents to HKS7.60 
and Jardine Matheson 20 cents 
to HK51L50. Hong Kong., and: 
Kowloon Wharf shed SO cents fo 
HKS26, China Light 60 cents, to 
HKS21 and Sun Hung Kai Pro- 
perties 20 cents to HKS8.40. 

and/or scrip Issue, e Per sharp. JFnncs. 
o Gross div. %. h Assumed dividend' after 
scrip and/or rights issue, k After- local 
taxes. mV, tax free... n Franca: lndudin^ 
linilac div. p-Kom. <i Share spUtl- > Hr*, 
and yield exclude special payment r Indi- 
cated djv. u Unofficial tradliiB. p MaiBrity 
holders only, h Meraer -pending. * ABhed. 
t Bid. 5 Traded. J Seller, i Assumed, 
xr Ex rights, xd Ex dividend. . xfc Ex 
scrip Issue, xa E* all. a Interim . since 
increased. - . 

Dec. 1 Dec. 

4 Industrial® 



fradinj! v«- 

111 8S9.eS4M.97l 307.7* 




Ind- div. yield ^ 


Dec, Dee. 

j ladBitrWsi 1D4.84| 105.8 
iCom posit e 

Ind. drv. vlcld % 

ln.L P/H KaCto 

Imjou Car. Bond yield 

Dec. Doe. I Dee. Dec. 


lndnstrisl - - 

TORONTO Composite 

AtutroliaCEV 535.06 
Belgium (H i 07.48 
Danmark! "*j 90.ZL 
Trance (ft) 76.6 
Germ&nytlT) 1 812A 
Holland i»«) 78.1 

A*97L J 

a ima#® 


1 BBbBI '±tS‘ •• 'V-ii 





j- .jaa3 



— O.Ofr J1169.58 

— O.rhO.lfc'17.14 


tL74 ' Hkiffi 

SPAIN » ' . 

neo 167 



222 r-'-H- 3 Uv 

177^ — ■ 1 

62 ;+ 1 

3 %£■+., 

' n *G: >, 

• t^nfer?'20 ; 1978 


Meat group 

back IB 

. By Our Cwrnmodk!** Staff • 

; ' ’i jvc, BRITAIN’S btggest-jneii 
■feusmess, fe tacbfaig tiBA mtD 
'the ' black, : Yesterday ' it 
»,v, . announced -a tiny flrst-haif, profit 
i irf £609.000 on a t ur n owr of 
s. C\ £238.57 m. . - - _■.:■:■.■■■ . y 

>x\-: Mr. David Darbiflhffe, chafr- 
*X£ ■•: man of the group wbfch ls con- 
>. 'trolled by' the Development 
v. Trust' of the National, Farmers' 
\ Union/ su’d the directors were 
. confident the full year's; results 
/ .< would show, an improvement oh' 

:• > year.- ; - ■ 

- In the comparable part of. the 
-1977-78 year FSIC made a loss' 
. <■' »4 of £390, 000 on' £21ftn : tar nayee, 

: . Althongh';'fteT^ : had been no 
< Improvemezif in^the Tttefair ” 
.. ‘i>\ competition .'from, mother. EEC 
snppliers ' of saeat ---into -, the 
• <*'*• Brft£sh_ market. Mr. Darbishire 
:V was content that the company 
. " wbs trading profitably- . 

One of its larger, and more 
'V old-fashioned - bacon . ; factories 
>>,“.vhas been closed • and more 
“ ratio nalisatJODr” is -expected 
•> * SOOP, ■ • ■ • - • 

y.. 5. . The group will also, benefit 
^ / «" from' increased supplies' of pigs 
/‘ in the new' year, although beef 
cattle will still be short One 
Vof the meat Industry’s . main 
>v problems recently- has, been 
'-■o shortage of -. throughput 

Bumper soya 
/ ' crops expected 

; . By. Our CommodltiH Staff ' 
'V s ' HEAVY CROPS of soyabeans 
V'viaro expected: in Brazil and 
"Argentina, according to agency 
-• reports, from Latin America. 

■ ; Government sources in Sao 
Paulo say the new yearns crop — 
" -due to be harvested in March— 
... '.will reach - a record 13J>m to 
, . tomes. 

In \ Buenos Aires. the 
^ /■/Argentine Ministry of Agrloul- 
..-^- ture said it - expected /record 
plantings of ' soyabeans for the 
978-79 season. ‘About 3L4 m 
hectares are expected - to be 
■ drilled with - beans— almost 22 
-. .per-cent more than last year. _ 
- ' The forecast was based on 
. *£ reports of farmers’ sowing inteu- 
j . tioxiSi . Planting has Just Parted 
1 ?.rin the main production areas. 
- !: -j ; Final figures for Brazil’s 1977- 
- 78 ‘ crop.- rWit^iered by' drought, 

t^vare not yet; Available, but the 
_ . ^ Government has'estimated. that 
1 '- the harvest was 9 J2m tonnes. 
Industry . sources consider this 
“too conservative and suggest pro- 
— - ./ duction was between 9.7m and 
.‘V 10m tonnes. • 

• Soyabean meal exports next 
i- i year will be 8.8m tonnes, while 
j 875,000 tonnes of oil and 9001000 
' 4 ■■ tonnes at beans will be shipped 
^abroad. . - j.-v'r " . • ■• 

EEC pork subsidies rise 

rfsksU.S. anger 


EEC FARMERS axe \tO : get 
higher subsidies off" exports of 
pork products to countries 1 out- 
side the Ctommabaty. 

The EEC Gbmmissicn?, a 
.move expected to 'bring > hos- 
tile reaction front /the 
announced yesterday that new 
export rebates, in ' some cases 

twiceastugh as the existing 
oneSr would coma Into effect 
frtnnDecetnber 25: " ■ 

But a decision, on export 1 sub- 
sidKes Within 1 the -Community, 

. such as those paid on exports of 
Danish Bacon to Britain; is' not 
expected until January. 

• EEC Agricultore Ministers 
.meeting here were preoccupied 
for most of yesterd ay Wi th the 
regulation- of the -EE© c Y“oe 
market. Although the matter 
-of monetary compensatory 
. amounts for- - pigmeat > was 
expected to be. raised, later in 
the evening, neither, this nor the 
question of - the “sluicegate 
price,” -the. minimum price on 
imports into the Community, is 
now expected to be resolved this 

France is insisting that the 
sluicegate-— or minumnn import 
— price be raised but /Britain, 
which Is demanding a cot in all 
subsidies on pork products 
traded .within the Community. 

says it will not approve the 
first point until its gets satis- 

The Commission bas put for- 
ward proposals on both issues 
which are expected to go before 
the pigmeat management com- 
mittee in time for a decision 
before February 1. 

Earlier, the Council of Minis- 
ters approved without discus- 

sion a proposal to extend 
existing arrangements relating 
to EEC fisheries both within 
Community waters and in 
interim arrangements with third 
countries such as Norway, 
Sweden, the Faroe Islands, 
Canada and Spain. Negotiations 
for more permanent agreements 
are expected to resume in 

Minister backs Callaghan 
on new currency unit 

BRITAIN LAST night supported 
EEC Commission proposals to 
introduce the new European 
Currency Unit (ECU) for the 
calculation of EEC common 
farm prices in such a way as to 
keep them at their present level. 

This is in line with the stance 
adopted by the summit two 
weeks ago by Mr. James 

This assent to a communique 
which stated that the application 
of the ECU to the farm policy 
should not change the level of 
prices, killed Britain's chances 
of manipulating the tech- 
nicalities of the new system to 

bring about a reduction of com- 
mon prices. 

This would not have had any 
immediate effect on national 
farm prices, but would have 
changed the distribution 
of monetary compensatory 

In supporting the British 
stand adopted at the summit 
meeting, Mr. John Silkin, the 
UK. Minister of Agriculture, is 
considered to have little 
political option. However, it is 
privately suggested that he 
might have preferred a 
temporary solution 

Protest as whale talks start 


TOKYO — Anti-whalinggroups 
demonstrated noisily- here as. a 
special meeting of the Inter- 
national ‘Whaling Commission 
(IWC) opened at the,, foreign 
ministry yesterday. : 

The meeting is being-held to 
decide the sperm while , catch, 
quota in the North Earifio next 
year. No decision was tajeep on 
this question at the. Commis- 
sion's annual meeting in London 
in. June. '• 

Japan is expected to demand 
that it be allowed a quota of 
2,754 whales, the saxne as this 
year. But the IWCs -scientific 
committee which r met' earlier 
this month in the U.S. held: the 
predominent view that the quota 
should not exceed last-: year’s 
catch results mid .that the-- tak- 
ing of female sperm, wfiales 
should be suspended. 

On the Japanese side there is 
concern that if a 20 per cent or 
30 per cent drop in the quota: is 
agreed' on, it will have to ’■cur- 
tail the number of ships sent to 
the North Pacific. Japan has-oqe: 
fleet being sent ' there . -and' 

operates seven ships from land 

In 1977, after the last IWC 
quota decision, Japan was 
obliged to reduce its fleets from 
three to the present one. The 
Japan Whaling Association 
claims that 200,000 people, 
directly or indirectly, depend on 
the whaling industry for their 
livelihood. Much of the whale 
consumed in Japan is imported 
already, they note. 

At the conference, the U.S. 
has taken the lead in calling for 
cuts In the quotas with the 
Soviets and Japan resisting. 
The latter two took over 6,400 
sperm whales this year. 

The IWC has already agreed 
on quotas for the southern and 
northern hemispheres for 
other types of whales during the 
197S-79 season. * The delegates 
will review the southern hemi- 
sphere sperm whale quota and 
discuss means of bringing otber 
nations into the IWC. 

About 200 members of the AH 
Japan Seaman's Union, the 
Japan Whaling Association and 


RiCC 1 METATC ' -from two quartans and rumour*. 

». ,-'|*Ai5JCr. JMJjI AJLO apparently from tha U.S.. of -Chinewt: 

r: - cdppfflrrStwdy on." the,' London buying, pushed “g “fi** 

... Exchange. after forward metal bed ® n “ * "* r “ °* £788.75. 

ifcTnUSally; declined, from £782 to £778 on Turnover 35.350 tonnes. - 

stronger- pound. Good buying Amalgamated Metal Trading reported 
jV:-CBiiaBcf'Bi ratfy'to £781 but there was' a that In the- morning cash wlrebars 
refill , to :£777^afwr the Comes opening traded at £763.5, 64. 65, three months 

- COePffirr-Stoathr. on. the, London 
— : \ Moral ExchangB.attar forward m etal had 
. • i-.TnidaJly; dedlned.-from £782 to £778 on 
-&.OT, stronger- pound. Good buying 

‘ . •rr-Tjafora tha rlao resumed. Heavy buying £779, 78. 78.5. 78. 79, 7JL5. «>, 8j, PL junoftlutal 

4 ■ ■ - • Cathodes, three months £769. Kjrb: . I . 

‘ I -jkjn.-U- oaTlum., , H- or . wi™hars. cash £784. three months £781.. -m — w j .. i .. i .. 


sure Which, coupled with the rise o! 
the pound, caused a fall to £6,920- In 
.the afternoon buying against physical 
business and . the fall of starling 
allowed a rise to £6.980 be lore a cloie 
ok the Kerb ol £6,950. Turnover 1,330 

“7 I a.m.“ [+ pr; " p.m. 1+ or 

• " TUI Official I - lUnoftJctai I — 

VjcqpbRb [ omda 

TO5*6 -FT 

8 njwrtluu780A-l*-*.78. 78S-J5 +1 

-- SettfiLotj. :7jB6. . -2.Bj — ... .... 

• gSS”. 751-2 Lt7S T 765-7 +2 
- .r ' 3 momhs. 78B-J U-3 773-4 +.7 
.*A«caoi. 8##^ 5Sfl r Lj^ 1 — 

tE-UASmt-l-T a n ' r,.. 

.:.pja... H- or .Wliebars. cash £764. '.three months £781,, 
Unofficial — 80.6, 81, BOA 80. Cathodes, three 

monthM £798, Afternoon; Wi rebar#,. 

. .£ £ .. three "month* £780, 795. 80, 81, 82. 

81, 813. 82, 813, 82, 82.5. 83. 833. 
788312.5 -FT - 8*. 843, 85. Kerb: Wirebar*. throe 
7B5-J5 +1 months £785. 853. 88, 85.5, .88, 85. 

— 84.5. 85. 053, 86. 86.5. 87. 

. c . TlN-HJttle tfwiMMl on belenco aftjm- 
253^7 +Z ~ forward mewl had started at £8.965 

773-4 +.75 following a steady Eastern market ovar- 

. night.' ■ Despite overnight physical 

*73 inquiry there was hedge sailing pra*- 

TTteh, Grade *• s'l x I x 

Oih- ' 7000-10 1-K-B 7050-40 + 15 

S moothaJ 692B-30 j-45 | 6950-4 +MJ 
SeUknn't. 7010 1— 6U ( — | „.... 

JLG. .index JbinilUM 01-3513466. TSiree months Copper 7833-7893 

' L" 29 ILamoot Road,- London SW10 OHS. 

.<> -. 1 . Tax-free trading on commodity futures. 

.-2. -The commodity futures. market for the smaller investor. 


Cash J 7000-10 U-123 7030^0 1 + 15 

S^nooLha 692530 I — 45 I 5950-4 +193 
BMWwn't.l 7010 -63 j — 

aq*4s.JI.J (91795 +4 I — I —— 
■Itew 1 xork 1 — I — ; I 

. -Morning: Standard, cash £7,010. three 
months £6.930. 25. 30,-25, 20. 25. Kerb; 
Standard, three months £B,93S, 30. 
Afumoon: Standard, three months 
£8.335, 4», 36, 30, BO, 45, 55, 50. 60. 
.55, QO. 56, 52. Kerb: Standard, three 
mopths £8,850. 

'• LEAD-r-Moved nerrovdy in routine 
trading with the market lacking outside 
^timuluB. Forward metal edged up from 
£430 and eventually closed Dn the Kerb 
at MM. Turnover 7,000 tonnes. 

r l " a-m. " H- or) pjn. j+ nr 
" LEAD I Official \— [ Cnpflifi" I ; — 

z \ 7 j 

the Japan Joint Whaling Com- 
mittee demonstrated in front of 
the foreign ministry protesting 
any cut in the quota. Anti- 
whaling groups, including rep- 
resentatives from the UK and 
U.S., staged counter demonstra- 

At one point two American 
groups floated a 12-metre whale 
shaped balloon in a moat out- 
side a major Tokyo hotel before 
police arrived. 

If the IWC reaches a decision 
on the quota, Japan and Soviet 
Union— the two major whaling 
countries in the North Pacific 
— will negotiate their respective 

Our commodities staff writes; 
The political balance of the 
Tokyo meeting is somewhat un- 
certain. At last week's meeting 
of the IWC scientific committee 
in California, a Russian official 
stated that his country planned 
to cease all commercial whaling 
within five years. It remains to 
be seen how this will affect the 
Russian attitude to this week's 


Ahor Initially opening »mg 120 
lower, cocoa prices rallied due to short- 
covaring. trading Tor the rest ol the 
day in quiat conditions to close mar- 
ginally higher than laai night's levels, 
reported Gill and Duffus. 

Ycvt«+inyV 4- ur~Bu«in«tr 
COCOA Cltue — . Dune 

ilw I957.D-4fl.fl —9.0 1964.9-54.0 

Mnreh 1979.S-B0.0 1-2.0 199B.0-M.9 

Slay 2UIS.0-1SJ) 1+10.5 2028.11-1990 

July 2020.0-24.0 +6.0 Hfi&.D-JS.O 

dept 2020-0-21.5 k- 1.76 2055.0-10.0 

Dec.... 2000.0-05.0 +2.0 2015 0-1900 

iletvJi 1985.0-85^ +5-0 JDOO.fl-1984 

Sales;' 6,188 (27M2Tlbls ol 10" tonnes. 

International Cocoa Organisation 
fU.S. cents par pound}. Daily price 
for Dec. 18: 177.31 J179.10). Indicator 
price Dec. 19: 15-day average 181.79 
(162.651; 22-day average 183.34 


jus25 O OO jOOO 

,.je% loan. 1975-1 BiB2 

"BMemoUons due.. _oo_ _ J itFebrvwv 
1ST* for which SJSI.25a.OOQ 15-Oro- 
•vldM h» tyen .made on .Iff* 
bar . 1978 by drawfnu or iota M the 
Premwa of ■ Notary. • 

Bead Natoterx Draw* 

•.... .11631-13080 HKdnslve. 

After 1st February 1979 
SUS2OJSQ0J3OO vrill rtrnahi In. b*M. 

The bonds ’ ivtdc* hwje been drman 
w»| cease to bear mt eratt on trt 
Tebruurr 1979. Bondi- oreyanted fer 
repayment mjttt -be i_COnW«a^ whh 
coupons Jor 1st -February _1g 80 , and 
tbl lowing altachtd and wllf b* OTTjbl* 
In accordance ^wfth the conditions 
Mown on Um bands.-.' 


NOTYET presented for payment 

REPAYMENT ..Of In Pabmary ■ 19» 
29SS 13971 _ 2983, :2MS - f 





8% BONDS OF 1974 DUE 1B8D 
holder* that ID accordance wMi tte 
terms and conditions. Ol the above 
Bonds, the Europe an Investment Bank 
has selected the Deutsche Mark as 
the currency to be uUlBed in respect 
of the payment, of -.the Interest due 
on January 18, 1979. 

■ Anv -holder - may. however, and- 
following prescribed procedure, select 
not las* than is days prior to the 


.' -LIMITED . 

register Of the. Ordlnanr Share* will be 
closed from istb ts 29th January. .1979, 

By Order of the Board. - 
. T J. .TODD. Secretary. 


: Is.the U.S Federal Reserve 
System resolved to 
continue Its dollar support? 

. - You^ust haye the answer to 

this question; based on 'fact not 
cx>njecture;if yo.u expect to prosper. 

. • • In 1979. 

GajOC 425.B-6 1-3.75 435-6 >—1.5 

JbKBrtliaJ 40I-.5 | — 1 405-.5 (+i 

Sect 'mend 436 U4 - 
.- UJL Spoil) - I * 55.56 1 

-.'■ Morning: Cash £426, 36.5. 26. three 
months £400. 1, 1.5. 1. 2. ZS. 2. 1.5. 
Kerb: Three months £401, 1.5. After- 
noon: Cash £425, throe months £400. 1. 
Z..15, 2. 2.5, 3. 3.5. Kerb: Three 
.months £404.5. 4, 3^, 4. 

~27NC— traded quietly but there was 
some physically-oriented business. For- 
ward maul moved down to £352 in 
jsarly trading but then climbed to £354 
-agd o dose on the Kerb ol £253.5. 
'Turnover- 7.075 tonnes. 

•' ,'v '• • 1+ or p.m. f+or 

Official — CoMBrinl — 

fi FT £ £ 

■Oaah^.— .. 54a^XB—3Jli 845-.S -2J5 
rAawntba . 353.5-4 h-3 ] 395.5-4 
S'ment„.. 353.5 J-iS - 
Prtm-weatl — | *55.6-4-5 ...... 

" Morning: Cash £343, three months 
053 . 535, 54. Kerb: Three months 
053. Afternoon: Three months £353. 
52-5. 32. 54. Kerb: Three months 
£353.5. 53. 

"ALUMINIUM — Fluctaatud in line with 
the ; movements ol the pound In quite 
active - trading. Forward metal was 
£820 .jm -market but then fell to £616 
before creep ing up to close on the 
j :Kert> at E62D. Tumovar 1JZ25 tonnes. 

I •Ajiinjin.'iD m i l . . t+or pjn. jt+er 

Following a morning that produced 
little activity early an robusts coffee 
futures behaved erratically soon after 
lunch, reported D raxel Burnham 
Lambert. Heavy trade selling from one 
bouse was the 'main feature pushing 
the spot position some £80 lower on 
the day. However prices soon staged 
a recovery when good buying from 
one quarter enabled the market 10 
finish within £10-652 from Monday's 
closing levels. 

;YesUmlaj' - v 

lOKFSH I I’ln-f -H nr lliiMnevs 

1 — 1 I>-ue 

j £ jv*r tin) pc 

Silkin may 
fish port 
aid offer 

By Our Commodities Staff 
FISHING BOAT owners using 
the port of Fleetwood were 
given a CMnZy-veffed warning 
yesterday that they may not, 
after all, get the £180,000 in 
Government grants ear- 
marked for their relief. 

The threat came from Mr. 
John SiDdn, Minister of Agri- 
culture, after the local boat 
owners’ association — which 
manages all the port's shore 
faculties— -announced It was 
to go Into voluntary liquida- 
tion in spite of the promise 
of assistance. 

Mr. Alf Davis, secretary of 
the local branch of the Trans- 
port and General Workers’ 
Union, demanded on Monday 
that In these circumstances 
the offer of aid should be 


Speaking in Brussels, Mr. 
SiUdn said that In any ease, 
no money would be paid out 
until the necessary order had 
been laid before Parliament 
next session and approved by 
both Houses. 

M Before commending tbe 
scheme to Parliament I shall 
take account of any develop- 
ments and of any representa- 
tions made to me." he said. 

Last week, he announced 
that £L2m would be made 
available to help cover rising 
dock and service charges at 
Fleetwod, Hull and Grimsby. 

But his offer of fnnds to 
boat owners did not satisfy 
the Fleetwood association 
which wanted £150.000 — 
£30,000 less than the Govern- 
ment's offer — paid directly 
Into Its own reserves. 


Peru stops 

LIMA — Commercial fishing in 
Peru will end on December 30, 
under an official decree pub- 
lished here yesterday. 

This will affect anchovy and 
other species such a* sardine, 
mackerel and bake, the 
Fisheries Ministry decree said. 

Fishing for meal and oil had 
resumed on September 19 after 
a two-month ban. 

Peru’s commercial catch this 
year is likely to be around 2m 
tonnes, Francisco Mariategui, 
the fisheries minister, said last 

The decree gave no date for 
the start of next year's fishing 


-count per too a*. Common wheat: 
50.33. rest nil iou.33. 1.(3. 1.08. ml). 
Durum wheat; 118.07. rust nil (118-07. 
rest ml). Rye: 83.83. rest nil (B3-|3- 
rest mi). Barley: 86.68. teat ml 1 86.68, 
rest ml). Oats: 81.87. 2.01. 2.01. ml 
<79.35. 4.21. 4.21. 2.39) MailO (other, 
than hybrid lor seeding): 73.26. 0.16, 
0.15. ml (78.26, reel nil). Buckwheat: 
All ml {all ml). WHIlet 6.14. real nil 
(64.25, nil, nil. 0.63). Grain sorghum: 
77.i4. rest nil (77.14. rest nil). Flour 
levies — Who at or mixed wheat and ore 
flour: 123.15 (123.81). Rye flour 128.70 


EASIER opening on the London 
physical market. Uncertain throughout 
tho day. closing quiet. Lewis and Pest 
reported the Malayaian go-down price 
was 233 (234) cents a kilo (buyer. 


1 1 j 

N... 1 :Vwwi|»yV hwlnn 1 Bn'lm-m 

I'Iuku j fir** 1 I rone 

Jan ! &7-00-57J0 SB. 90-97.20 67.20-66.SS 

Fat 67.90-58.00, S7.B0-57JB: — 

jHii-U-r 68.00-58.19 67.aO-57.BS: 59.15*5738 
Ale-Jut £0.7540.60 60.45-00-50: CI.M-fifl.5B 
Jv-Seul. 65.15-63.20 B2.75-62.B6' S2.iD-B2.7B 
lia-litt- 05.10-6850 84.95-65.00; 66.5IW4.fl5 
.lan-.'-iar S7.75-B7A5 B7.M-fi7.55! 67.4W7.26 
Ar*r- Jne 70.10-7020 69.S5-69.70; 7Q.1D-69.B6 
Jv-;epr., 72.45-72^0 72JO-72.05[ 72.45-72,28 

• ____ l # 

Sales: 7 (5) lots of 5 tonnes. 320 
(2P.M lots ol 15 tonnes. 

Physical closing prices (buyers) 
weie. Soot 56.75p (56 251; Jan. 58p 
[57.9): Feb. 58.75p (same). 


Jenna ry....J 1594-1395 -51.5 1438-1365 

Uarob. 1 1846-1849 —42.0 1275-1250 

May 1197-1801! — 3U 1818-1176 

July ■ 1153-1165 —34.0 1184-1146 

fic-inejutwr .. 1 130-1155 —39.6 1155-1 122 
S«v-wnber... 1100-1110 -Z9J) 1185-1095 
January 1090-1 110-1 0. 5 — 

SsSbe: 8.338 (1,371) lota of 5 tonnes. 

ICO Indicator prices tar Dae. 18 
(U.S. cants per pound): Colombian 
Mild Arableea 171.50 (same): un- 
washed Arabics* 143.00 (same): other 
Mild Arebicaa 130.83 (132.33): 

Robustas ICA 1978 13.50 (131.00); 
Robuataa ICA 1968 130.60 (132.00). 
Dally average 130.17 (131.67). 



| Clree 

| Done 

lkveml +r.... 124^0-28.0; 

+0.6 ! 






■ Spet- ; 

i Tnxwirtn. 

£ . / 


S 19-20.5 L1.75 

opened unchanged end initially values 
eased slightly, but good commarciol 
buying interest was seen at 10.15 lower 
on the wheat, 25p lower an the barley, 
(n the afternoon session me market 
rallied and on fairly good volume Haded 
to dose 35 and 40p up on wheat and 
25-3)p up on barley. New crops 
remained steady and closed 25p higher 
ori wheat and 5p higher on bariay. 
reporte d Adi. ; 


jTesterrtaj '*! + nr jVerterrUy'Bi-). or 

Will® offier advisors write about Investing, flie James . 
Srxd<^lnvestrr»eritAdvisofyServk»l5dc^ it-forthemselwes 


andforothore.^hoursaday. lnihe 5peailc^ 
commerctaf markets currencies preebis metafe bonds, 
Hi ftfiure9,QhneMa©a. coihs,orvd much more. Deoftrg'ftomAsia 
to ttreasritaiecfi ond-US. markets. : 

Whaft moi«^toe professionals at JamesSndair deal in 
Jnve^mentopportmlttes thaTara basedonysoffsTto reocilons 
to Iho c ohstafif changes ftiih&woilct both gopdond bad. 
§2 Opportufititesthatcanbayoursina riewslettCTihcfe weekly... 
i * to addition 1o an exckisive Hot-Line thafs daityl ' 

For ocfcftfonal Information, simply complete andmall the 
coupon.faetowc ' : ‘ ;v"-’ 

J AMsTnCLAIR 8t to” r DepLLD20 

- 55 VVriter Street, NY,NY.1004l . ^ 

; I am Interested fri «» Jamw Shckslr Viveslrr^-Adv(soiY.Sejvi«. 

■ ftease sand nw. mow intoWoHon, in’oekppo to 0 .FREE copy of your 
weekiynewddtectodsUSs^^ .. 

- murnniy: mra* irtanma uir. m.s, 
15, 17. Afternoon: -Three months 

EB1 9.5. 20,5, 20, Kerb: Three months 


■ 'Cents per pound, ttu per pienL 
.ton. prevlMiB. upoCflcia] chue. 

' V 

-j. Sliver was ftxocf O.Q5p an ounce 
. hlgbar for Boot delivery In the London 
tbolllon marVar ■ yesterday at 238. 05 p. 
:U.S. cent equivalents of tha- fixing 
level* were: Spot 602.5c. up 45c: three- 
montb'. --617.1c, up . - 5.0c; six-month 
B30^;-pp 5.4c; and 12-month 653 >tc, 
•. tip 8. 9c. The metal opened at 298-299p 
(S37V539c) and dosed at 295-237 p 

Jau „ 91.45 
Mar... 93.65 
May.. 66.15 
Sept. 89.65 
- No«r_ 92.55 

1+0.4 85.85 

+ 0J5 85.60 

+0.4 [ &8.10 
+ 0-26 83.60 

+0.25 1 86.55 

Business done— Wheat: Jan. 91J5- 
90.9, March 33.55-33.15. May 95.90- 
95.70, Sapt. 89.60-39^, Nov. nil. 
Sales: 129. Barley: Jan. 83.25-82.7S. 
March 85.30-85.15. May 87^0-87.50. 
Sept. 83.60-83.60. Nov. ml. Salea: 201. 

HGCA — Location ex-farm spot pries*, 
other milling wheat: NE England 90.90. 

.tflLVaK Bullion !+ oiij l^U.S. + or 
pe r ' . fixing j — j rlosa j — 

■troy os. price | j j . 

3jX*_..J_ S9B.05p .4fl.B5 896.95p 0.88 

3tastUaj306.15p.,>JU ;303^Sg j-0.85 
fltnohriu J3 13.95p ~fl.4 — 1 

l»axjnthaf330A5p ,+flJ — j 

. r - i I ! ' 

Turnover 288 (459) lot* of 
1 0,000 . ozb. Morning: Three months 307, 
f :m, 02. 6.1. Kerbs: Three 
"month*. 306,' 5i7.“EJr, 5.4. Afternoon: 
Three month* 304.7, 4J, 4. 3.9. Kerbs: 
Three, month s 404, 3,5, .35. 32. 3. 3 A 

Feed barley: NE England 78.80, Berks 
and Oxon 80.10. 

•77ie UK monetary coefftafant for the 
week beginning Monday, December 25 
(based on HGCA calculations) is 
oxpocted to remain unchanged. 

IMPORTED— Wheat: CWRS No. 1 
13A par cant Dec. 96J25 quoted Tilbury. 
U-a. Dark Northern Spring No. 2 14 per 
cent Dec. 88.50, Jan. 50.75 seders 
transhipment East Coast. U.S. Hard 
Winter 13J per cent Dad. 87.00, Jen. 
87.25. . Feb. 87.50 sellers transhipment 
East Coast. EEC unquoted. Main: 
U.S./French Dee. 106.00, dan. 105-50 
transhipment East Coast. G. African 
■White Jon. 67-SO. S. African Yellow 
Jan. 67.50. Barfey: English feed tab 
Jan. 85.00-85.75, Fob. &2$ tranship- 
ment East Coast. 

EEC IMPORT LEVIES— The following 
levies and . premiums ore effuciivo for 
Dec. 20 (n onctac of currant levy plus 
Jan,, Feb. and March premiums (with 
previous in brackets) all In Units of 

hei.ruary — u.zs <ej wu-w 

Aivii 126.10-26 5^ — 0.6 17J0-26 J» 

June 1£I 60-86 Of — 0.2 - 

Auirusi. ....... 124.4*24 flj + OJ — 

Oruiher 124^8-28 6 +0.4 — 

UeremlHrr .... 8U MM| — 0-2B — 

Sales: 55 (83). 


£101.00 (nOZ-OO) a tonne c(f tar Nov.- 
Dee. shipment. Whits sugar daily price 
was fixed ax £100.00 (same). 

The market was contained within a 
50 points trading range throughout tho 
day. reported C. Czamlkow. 

snow ■ [ 

prw. Yesterday's Previous Buimesa 

Cum m. I* Class j Close Done 

£ per lonne 

Man* LllllJB-11 JO 1UJB-10.101I.B6-I0.fl0 

May <115.75- IS.90 118 J0-1B.UiHJB-l5.ffi 

Aiifi-.... 1 17.40-17 Jfl nB.BS-1B.fl0ia.BO-17.DO 

OeZ 1 2Q.40-M AlLl1fl.BO-19JOJ!n.flO-a.M 

lieo. 1 f2.7B-2B.Q81 22^0-22.75 — 

USA* - 126JU-47jDfft2B.8a-SS.50 26J0 

Hey 12fl.lg-M.50ll2fl.W-8a.aQ - 

Salea: 1.476 0.472) lota of SO tonnes. 
Tata and Lyfe ax-refinery price for 
granulated basis white sugar was 
*£264.85 (same) a tonne for home trade 
end £174.00 (£173.00) for export. 

International Sugar Agreement (U.S. 
cents par pound) fob and stowed 
Caribbean port. Prices for Dec. 18: 
Daily BJ2B (8.17): 15-day average 727 

WHITE SUGAR— Close (In order: 
buyer, sellar, business, sales). Fab. 
101.25. 101.50. 101 .25-100.50. 75: April 
107.5a 108.00, 107.95-107.50. 13: July 
113X0, 113.25. 113J25. 3: Sspt. 118Xa 
119.00, 118.76. 30: Nav. 124X0. 125X0; 
Fab. 129.50, 130X0: April 132X0. 135.00. 
Sales: 121- 

Earnings hit by inflation 


FRENCH FARM output has 
risen 5.1 per cent this year 
mainly by virtue of a 15 per 
cent jump in grain and 
vegetable crop production, a 2 
per cent rise In the livestock 
sector and a further 2.5 per cent 
increase in milk deliveries to 

And while farm incomes have 
risen 8.4 per cent over 1977 in 
simple terms, inflation bas 
whittled this down to a mere 
0.9 per cent 

Tbe only sectors not making 
satisfactory progress this year, 
according to the results of a 
survey carried out recently by 
the Commission des Comptes de 
] ’Agriculture de la Nation, are 
beef farming which is stagnat- 
ing, and the pig industry which 
bas been suffering from a com- 
bination of cyclical depression 
and tough competition from 
Holland and Germany. 

The wheat crop yielded 20 
per cent more than in 1977 and 
barley and maize output rose 10 
per cent and 11 per cent res- 
pectively. The increases in 
wheat and barley are put down 
to improved yields while the 
improvement in maize is attri- 
buted to a bigger area which 
came close to the record 
acreages planted betwen 1973 
and 1975. 

Market prices for wheat and 
maize have averaged 7 per cent 
more than last season. Barley 
is 4 per cent dearer. 

Potato growers have had a 
bad season. Although the crop 
was 6 per cent lower than the 
extremely high production of 
1977, carry-over stocks into the 

current calendar year have 
helped to depress prices to 
about half last year’s levels. 

In the wake of the calamities 
which struck in 1977 there bas 
been a marked rise — back to 
normal levels — in production of 
oilseeds and tobacco. 

improvement in the balance 
of the wine market has not so 
far produced ' any marked 
recovery in prices. Receipts, it 
is estimated, will rise by only 2 
per cent this season. Deliveries 
of vms de quality have fallen 
overall by 12 per cent this year, 
mainly because of a 60 per cent 
fall 'in production in tbe 
Champagne department 

Reduced output of ordinary 
table wines for the second year 
in a row has brought a cut of 5 
per cent in opening stocks for 
tbe new season. 

In its assessment of the live- 
stock markets, the Commission 
was confidently expecting an 
upswing in beef production this 
autumn, and at the same time 
forecast a price rise over the 
year of 34 per cent for veal pro- 
ducers. The rise in veal produc- 
tion on the farm is running 
slightly behind the increase in 
slaughterings— up 2 per cent 
compared with 2.5 per cent. But 
the shortfall is being bridged 
by imports from Britain. 

Although there is general un- 
ease in the pig business rooted 
in heavy increases in output in 
neighbouring Germany and 
Holland, prices have tended to 
stabilise because of a less 
hectic increase in domestic pro- 
duction and some reductions in 
monetary compensatory 

amounts which act as subsidies 

Copper buyers active 


JUT&— Steady. Doc. -Jan. C. and 1. 
Dundee. BWC.E2BS. BWD £253. BTC 
£268. BTD £254. C. and t. Antwerp. 
BWD SS6S. BWC 5537, BWD *522. BTB 
5505, BTC $539, BTD $523. Jut* good* 
steady- D*e. C. and f- Dundee 40/10-oz 
Clt.lfi. 40 UMEEE 7S-ta 8.55. “B" 
twills 30.02. 


LIVERPOOL COTTON— Spot and ship- 
man r aalos amounted to 288 tonnes, 
bringing die total lor the week so far 
to 424 tonnes. Modest operation* in 

THE DEPRESSING effects of 
the strength of sterling on prices 
on the London Metal Exchange 
yesterday were more than offset 
by the impact of two influential 
buyers in the Copper market. 

According to rumours origin- 
ating in the U.S.. the buyers 
were covering against Chinese 
buying in the physical copper 

At the close all futures prices 
had edged marginally ahead on 
the day. 

Our correspondent in Lusaka 
writes: Zambian copper produc- 
tion in 1978 is likely to total 
656,090 tonnes, slightly less 
than last year’s figure of 660,000 
tonnes, according to informed 

Output of the two state-owned 

American type styles were again 
reported although customers appeared 
to be anxious about the downward 
drift in prices. Mixed dealings in 
Russian, Turkish and Colombian mode 
up the bulk of the offtake. 


LONDON — The market was quiet,' 
reported Baclre. 

iPeoce per kUo) 

Australian -)- or, HubWk, 

GraasvWin,:; l'imu I — j Ume 

December... -2 17. 0-25 J)' — 

March 318X-25.0; I — 

nej--- -34.U-S5.0 — 

July 'Z31.0-0.fli : — 

LHScU+r ...... |z3+.t-4B.O ...._ — 

UoxenbOT ...ii35X-<2.0 — 

Haiefa t36.0-44.Qi - 

Slav ;z39.b60.ft I — 

Soles: Nil (same). 

SYDNEY GREASY— Close (in order, 
buyer, seller, business, sales). Micron 
Contract: Dec. 343.4, 343.6, 343.5-343.1, 
Z7; March 350.2. 350.5. 351 .0-350.2, 15: 
May 356.5, 357.0. 3S7.0-35BX. 19; July 
360.5. 361.2. 361.0-361.0, 5; Oct. 363.0, 

365.0. ml; Dec. 366.0. 366.5. 366.0-366.0, 
13: March 369.5. 371.0, 369.0-368.0, 3: 
May 370.5. 373.5. nil. Total sales: 82. 

(in order buyer, seller): Dec. 184.0 
90.0; March 182.0 8S.0; May 185.0 86.0; 
July 187.0 90.0; Oct. 190.0 93.0; Dec. 

192.0 97.0: March 193.0 98.0; May TS3.0 

98.0. Sales: Nil. 


SMITHFIELD (pence per lb)— Beal: 
Scotch killed sides 56.0 to 59.0; Eire 
hindquarters 68.0 to 72.0. forequarters 

34.0 to 38X- 

Lsmb: English small 48.0 to 58.0, 
medium 48X to 54.0. heavy 44.0 to 50.0: 
Scotch medium 48.0 to 52.0, heavy 

44.0 to 50.0. Imported frozen New 
Zealand YU 47.0 io 48.0. 

POrk: English, under 100 lb 36.0 to 

46.0. 100.120 lb 32.0 to 45.0. 120-160 lb 

35.0 to 44.0. 

Partridges: Young (each) 200.0 to 

240.0. _ 
Pheasants; Best (per brace) 300.0 to 


MEAT COMMISSION— Average fat- 
al ock prices at representative markets 
on December 19. GB cattle TO.OOp per 
kg. i.w. (—1.71); UK sheap 133.6p per 
kg. ast.d.c.w. ( + 1.5): GB pigs 60.6p 
per kg. I.w. (—4.0). England end 
Wales: Cattle numbers down 44.0 par 
cent, average price 69.10p f—2.15): 
Sheep numbers down 42.9 per cent, 
average price 134.4p (+1.9); Pig 

numbers down SB.8 per cent, average 
price 59 Xp (-4.7). Scotland— Cottle 
numbers up 3.8 per cent, average price 
72.03p (-0.97): Sheep numbers down 
3.B per cent, average price 1Z3.5p 
(+0.8); Pig numbers down 0.8 per 
cent, average price 64.5p ( — 1.3). 

COVENT GARDEN — Prices in sterling 
per package except where stated: 
Imported Produce — Lemons— Italian: 
120‘s new crop 5.25-5.50; Greek: 5.00* 
5.50: Cypriot: Trays 4.80-5.20. Boxes 
80/180's 4.30-6.50: Spanish; Trays 2.00- 
2.20. Oranges — Spanish; Naval- 
Nave lines 4.00-4.60: S. African: 
Valencia late 1.50: Greak: Navels 20 
kilos 4.20-4.40: Israeli: 4.80-5.05. 
Clementines — Cypriot: 10 kilos 3.50- 
4.00: Moroccan: 3.20-4 40. Sataumas — 
Spanish: Trays 2.50-3.00. Grapefruit— 
Texan: Red Blush 4.60-4.80: Florida: 
4.80: Turkish: 2-40-2.60: Cvpriot: 2.2D- 
3,60: Israeli: Jaffa 40/75 3.40-3.60. 
Apples— French: Stark Crimson 40 lbs 
138/ 163' 3 4.40-5.30, 20 lbs 84'* 2.20; 
72's 2.40; Golden Delicious 20 lbs 72 'a 
1.80-2X0, 84's 1.70-1.90, 40 lbs 

138/183/175's 3.50-4.00, Jumble oack. 
oar pound OX7-0-OB; Granny Smith. 
20 lbs 72‘s 2.30-2.40, 84's 1.80-2X0, 
English Produce — Potatoes — Per 25 
kilos 1.40-2X0. Lettuce — Per 12 round 
1.70-1.80. Muahrooma — Per pound 0.55- 
0.60. Apples — Per pound Bromley 0.06- 
0.12, Cox's Orange Pippin 0.06-0.16. 
Worcester Pearmam 0.04-0.06, Russets 
0.06-0.09, Spartan 0.08-0.10- Pears— 
Per pound Conference 0.08-0.14, 
Comice 0.14-0.18. Cabbages— Par crate 

1.00. Celery — Per head 0.12-0.15. 
Cauliflowers — Par 12's Kant 3.50-4.00.. 
Beetroot— Per 28 Ibe 0.60-0.70- Carrots 
—Per 28 lbs 0.50-0 60. Capsicums— Per 
pound 0.30. Onion s Per bag 1 .80-2.20. 
Swedes— Per 2B lb* Q.CO. Turnips— 
Per 28 lbs 0.90-10.00. Parsnips — Per 28 
lb* 1,20-1.40. Sprouts— Per pound 0.09- 
0 . 10 . 


HIDES— Birmingham. On unchanged 
but cows firmer. Second clear ex- 
31-35V kilos 68p POT kilc.* 2&-30*z kilo* 
75: 22-254 kilos 83p. Lightww* 82.1p.- 
No call offered.. 

companies. Roan Consolidated 
Alines (KCJlf) and Nchanga Con - 1 
soli dated Copper Mines (NCCM) 
is expected to lie 284,000 tonnes 
and 372,000 tonnes respectively. 

The industry has faced con-' 
siderable problems this year, in- 
cluding a shortage of skilled 
manpower, inadequate supplies 
of spare parts and oil due to a 
lack of foreign exchange, and 
severe congestion on the 
northern export route to the 
Tanzanian port of Dar-es-Salaam. 

Earlier this year Mr. J. C. 
Ma’oma, Minister of Mines, 
warned of "an alarmingly high 
resignation rate among skilled 
and experienced personnel ” 
which was Jikely to adversely 
affect production in 1978-79. 


Pries in tonnes unlos* otherwise 

on imports from other EEC 

Milk output has improved 
further and prices have risen 
about 9 per cent over the year. 
Apart from the over-riding 
problem the EEC has with Its 
huge dairy surpluses, France 
has been having some difficul- 
ties in its export markets 
mainly because of the pressing 
need for Germany to thin out 
its abundant stocks of butter 
and milk powder. Its attempts 
to export have interfered with 
France's trade. 

After two years of falling pro- 
duction and rapidly rising prices 
egg output this year has gone 
up 3 per cent and prices have 
risen at the more modest rate 
of 5 per cent. 

Farmers’ purchases of 
feedingstuffs rose 7 per cent, 
mainly because of a lengthy 
period of stable prices. And 
they also bought 5 per cent 
more fertiliser this year, prob- 
ably. the Commission says, 
because of improved climatic 
conditions which allowed them 
more time for fieldwork. 

Average cost of the main 
farm inputs rose only 5.5 per 
cent over the year with excep- 
tionally high price increases in 
veterinary medicines. 

O National subsidies for French 
farming jftLs year will total 
FFr 3.650bn. a figure inflated 
by Uie inclusion of FFr 1.5bTj 
paid out to farmers hit in 1977 
by floods and storms in the 
South West. 

• The number of farmers in 
France is failing at 2.4 per cent 
a year, latest estimates show. 

Late rally 
in cocoa 

By Our Commodities Staff 

COCOA PRICES rallied yester- 
day afternoon after a forecast 
of a 21,000 tonnes surplus in 
the 1978/79 season had helped 
to trim £20 off nearby values 
during the morning. 

Dealers said the forecast, by 
London merchants Gill and 
Duffus, together with the lower 
sterling level encouraged a 
lower opening but the market 
later came to the conclusion 
that the Gill and Duffus pre- 
diction had been discounted in 
yesterday's £50 fall. 

I Dec. laj-f. or 


l ira r 



Aluminium £710 £710 

Pres market (eW .*1.170/Btt Sl.lflfl/20 

Copper cub W B*r'£769 )+ 1.0 £749.5 
3 Rujarbs do. do.i£786-2fi + 1.0 X77Q.7S 

Cach Cathode. '£756 1+8.0 £73B.5 

3 months do. dD.',£773 I+0.7B £759. !fi 

n ( «li! Trqy «r.lS*16.5 (+3.B2B SI9M75 

Uad cash £425.5 :— 1.6 £391,5 

3 months — £+03.26.'+ 1.0 £382.5 

Kielrel - I ; ; ; 

Fro* Maik0t(olf)(lb| 8 1.68 | 'J1.70 

I 1X0 | [ 1.80 

Platinum troy aa.. 
Pro* Market...... 


Silver ttny im 

3 tnonua . .......— 

Tin mh 

5 muni ha .......... 

Tunptten Iq 

Wolfram S2jM ell . 

Zimr ■.■ash 

3 montba 

Producers ... 


L'uomiit (Phil) 


Linseed Crude—.. 
Palm Malayan. 

.£156 | £142 

.-'£173.9 i t 0.9 tC 165,3 

148/55t 18135/40 

. 1 298.05 i>l + 0.05; 307. 7&p 

.iSOB.lBp'— 0.1 |315.75p 
. : £7,035 |+15.0 £7,480 
.i£6,9S2 1+19.5 £7,360 
'S145XB + 2. 95, S 141.80 

,'51371441 S140/4B 

£353.75 -3.0 >£357.6 
,$720 • JS720 

.18935.7 ] '£840 

Jfi.oiV ' ’ 

•i£336 ,-6.0 £330 

.15620/ +7.0 j£6S6 

6.25 +0.t5X94.5 
17 1— Q.Z5:£89.75 
S.5« [£92-5 

Seeds ' 

Uit»ra Philip ,..jS612.5p +12.5 ;S570 

ekyaNan ( 1$ 289b J + 3.0 ■ £276 


Barle.r ... 

Home Future..-. £85.6 +0.3 |£B3.6 

Ualw j 

Preach A'a. i Aaij£ 106.80 X103X 

Wheat i 

A'0. 1 Hed Spring i£96-2 5 +0.25X94.5 
SoXHanl Winter £87 -0.2B:£89.75 

Hngliab Milling t{£93.5a | |£92.5 

Other Cammodities 

Cocoa Shipment.... (£8.040 (+8.0 £ 2.821 

Future Mar. [£1979.75 -1.75 ££,170.& 

Coffee Future j i 

Mar -.|£1,247.6|— 42X'£ 1 .417 

Cnttoa *A' I nilex... 1 79c i+D.05 ,79.3c 

Mubber kilo 56.75/> +0.5 ;59.5p 

Suaar illati) £101 [-1.0 |£100 

Wotiltnp* P4» (klIo),|271p _f. ,2T4p__ 

• Nominal, t New crop, t Unquoted. 
b Jen. -March, p Dec. -Jan. o Jan. -Feb. 
1 Feb. uJan. x Per ton. j Indicator 



Deo* 19 Dec. 18 i Month ago j Year ago 

266X2 ' 288.59, _26 1X8 ( 337.47 
(Base: Jnly 1," 1922=1001'" 


Dns. 19; Dee. IB Uunth ago | Year ago 

1500.51^602^5 jyOX l l415X 
- 1 Base: September is, I93i=imu 


| Dw. 



\ 18 


.... 384.67 386.26 396. IB 353. IB 
Futures 381.76 383.33 392.C8 323.44 
(Average IS! +03-28= 106 1 


Dec. Dee. llnoTli Year 
Xcnd.V'a 19 | IS - agu a^c 

9ple_Ciimmty 976.6 978.B 978.4 _085.2 
rbccembar 3L t&31=iM> 

GRIMSBY FISH— Supply moderate, 
demand good. Prices at ship's side 
(unprocessed) per atone: Shell cod 
ES.00-E7.00. codlings E4.00-E5.30: large 
hadock C4.5O-E5.G0, medium E4.00-C4.60. 
small 3.60-4.20; large plaice 4.20-E5.00. 
medium E4JO-ES.OO, best small £4.70- 
1S.00: large skinned dogfish E8.50. 
medium £5.50; medium lemon soles 
£10.60; rockfish f2.60-E3.30; reds £2.00- 
£2.60; Saitho £LQ0-£3.60. 

Copper and 
metals rise 

NEW YORK. Dec. 19. 
PRECIOUS METALS rlpsed sharply 
higher on Commtasion House and 
chartist buying on rumours that tha 
prices and quantities bid (or in Hie 
auction _ were constructive. -Copper 
closed higher tallowing precious metals 
and speculative buying. Cocoa closed 
slightly higher on light arbitrage buy- 
ing and speculative short-covering, 
Bache reported. 

Cocoa— Osc. 173.90 (174.15). March 

173.90 (173.60), May 173.90. July 
173.90. Sept. 172.15, Dec. 169.15, Match 
167.15. Salea: 1,016. 

CoHm — "C" Contract: Dec. 134.75- 

136.00 (134.58). March 125.90-126 50 
(126.90). May 122.75-123.35. July 
121.50-122.00. Sept. 121.50-122.00, Dec. 
119.00-112.00. March 116.75-118.50. May 
unquoted. Salea: 804. 

Copper— Dec. 68.90 (66.00), Jan. 

69.00 (68-15), Feb. 69.80, March 70.60, 
May 71.85. July 73.00. Sept. 74.00, Dec. 

75.25, Jan. 75.65. March 75.45, May 

77.25, July 78.05. Sept. 78 86. Sales 

8 . 000 . 

Cotton — No. 2: March 67.25-87.40 
(6B.3S). May 69.25-69.50 (70.43). July 
70.40-70.50. Oct 68.21-66.30. Dec. 64.50- 

64.60. March 65.30-65.35. May 65.30- 

68.60. Sales: 7.550. 

■Gold— Dec. 220.80 (2U.70). Jan. 

221.90 (215.80). Feb. 223.70. April 

227.60, June 231.60. Aug. 235.60, 0«. 

339.60, Dec. 243 70. Fob. 247.80, April 
25T. 90. June 256.00. Aug. 260.20, Oct. 
264 .40. Sales: 45.000 

tLard — Chicago loose 23.25 (same). 
NY prime staem 24.75 non. (soma), 
ttMeize— Dec. 219V 220 (220), March 
233-2321* (233M. May 241V July 247V 
247V Sept. 248, Dec. 253V 
5 Platinum — Jan. 350.00-355.00 
(346.50), April 353.50-358.00 (349.00). 
July 356.00-361.50, Oct. 364.00. Jan. 

361.50. April 367.00-367.20. July 364.00. 
Sales: 3.147. 

HSIlver — Dec. 601.20 (595.50), Jan. 
£03.70 (597.20 >. Fob. 607.10. March 

610.50. May 617.80. July 626.30. Sept. 

634.60. Dec. 648.30. Jan. 653.10. March 

662.60, May 672.20. July 681.90, Sept. 

691.70. Handy and Harman spot 594.50 
|5^B.OO). Sales 17.000. 

Soyabeans — Jan. 7£i3-702 f702M. 

March 717^713 (716). May 725-224. 
July 726-7 25. Aug. 716*1, Sept. 693-6%. 
Nov. 67 V 1 !- 678. Jan. 685*3. 

1 1 Soyabean Meal— Dec. 195.90-19S.80 
(198.40). Jan. 137.30-197.00 (157.90), 
March 196.20-195.80. May 193.90-192X0. 
July 193.00-192.80. Aug. 192.00, Sept. 
189.80-190.00. Oct. 188.00. Doc. 186X0. 
Jan. 185.50-186.00. 

Soyabean Oil— Dec. 25.55 (25.73). 
Jan. 25.75-25.80 (25.771. March 2S.75- 

25.70, May 25.45-25.48. July 25.30-25.35, 
Aug. 25.10, Sept. 24.40, Oct. 24.00. 
Dec. 23.75. Jen. 23.50-23.70. 

Sugar — No. Tl: Jan. 8.54-8.55 (8.551, 
March 8.98-8.% (8.99). May 9.16-9.17, 
July 9.34-9.35. Sept. 9.56-9.57. Oct. 
9.67-9.68, Jon. 9.68-9.69. March 10.22- 
10.24. Mav 10.35-10.50. Salea: 5.2S0. 
Tin— 650.00-664.00 nom. (650X0- 

663.00 nom.l . Spot 650.00-664.00 asked 

■■Wheat— Dec. 371-375 f 373*1. March 
34*S*r-?4B (347%). May 337-3371*. July 
323V323V Sept. 328V Dec. 33 3V 
WINNIPEG. Dec. 19. MRye— Dec. 
93.40 bid (96.001. May 99.90 (102.50 
asked). July 102.70 asked. Oct. 102.00. 

ttOats— Oec. 83.70 asked (30001. 
March 81.70 asked (81.60). May 79.40 
asked, July 79.10 asked, Oct. 73.90 

All cents per pound e« -warehouse 
unless otherwise stated. * Ss per tray 
ounce—' 100. ounce lots, t Chicago loose 
Ss per too lbs — Dept, of Ag. prices 
previous day. Prime steam lob NY bulk 
conk cars. 1 Cent* per 56-lb bushel 
ex-warehouse. 5 000-bushcl lots. 5 Ss 
per trov ounce tar 50- oz units of 89.9 
per cent puritv delivered NY. fl Cents 
per troy ounce ex- wa rehouse. II New 
'• B '' contract in Ss a short ton for 
bulk lots ol 100 short tons delivtrrad 
Inb cars r.hicaoo, Toledo. St. Louis and 
Alton. •’ Cents par 59-lb buehal’ in 
stare. It Cent* par 24-lb bushel, 
ii Cent* per 43-ih bushel ex-werohouse. 
§§ Cant* per 58-lb bushel ex-ware- 
house. 1,000-bushef lots. 71 Ct per 



Companies and Markets 


Financial Times 

underlying caution 

30-share index hardens 2.1 to 476.1— Golds move up 

Account Dealing Dales 

•First Declare- Last Account 
Dealings lions Dealings Day 
Nov. 27 Dec. 7 Dec. 8 Dec. 19 
Dec. 11 Dec. 28 Dec. 29 Jan. 9 
Jan. 2 Jan. 11 Jan. 12 Jan. 23 

* ** New time M dealings may take place 
front 9J0 am two bushuas dam earlier. 

Although equity markets 
finally managed a small recovery 
yesterday, the underlying tone 
remained cautious and the 
modest improvement in leading 
issues reflected mainly the 
ahsence of a repetition of the 
selling which accompanied the 
previous day's setback in the 
dollar; the latter was slightly 
lower but steadier yesterday 
because of official intervention. 

Political uncertainties and the 
possibility cf a fresh outbreak 
of labour unrest remained very 
much in the foreground and 
genuine buyers were still show- 
ing a marked disposition to hang 
fire. Continuing fears of higher 
U.S. interest rates prompted 
fresh dullness in short-dated gilt- 
edged securities but the longer- 
dated issues tended a little 

Leading equities were marked 
down a few pence initially as a 
precaution against fresh selling 
in the wake of the sharp over- 
night setback on 'Wall Street but 
when this failed to materialise, 
prices gradually recovered and 
final quotations finished two nr 
three pence firmer on balance. 
Down 1.7 at its lowest of the day 
at 10 a.m.. the FT 30-Share Index 
recovered to close with a net 
improvement of 2.1 at 476.L 
Once again, the volume of trade 
was extremely low, official mark- 
ings of 3,403 comparing with 
3,398 on Monday. 

South African Gold shares 
made useful progress following 
overnight demand from the U.S. 
and a fresh early improvement 
in the price of bullion. The Gold 
Mines index rose 6.5 more to 
140.2 for a two-day rise of 9.5. 

British Funds of a shorter 
maturity continued to reflect 
concern about U.S. interest rates 
and operators fully expected 
Prime Rate increases to be an- 
nounced soon. Although the 
losses were relatively modest, 
sizeable potential sellers were in 
the background and this in- 
hibited investment demand. The 
two Variable issues were the 
exceptions, a fair interest rais- 
ing the 1982 stock -;\i to 95 i and 
the 1981 maturity i to 96 Jv'. 
Mediums and longs were vir- 
tually untested but closed 
marginally firmer on the day. 

Encouraged by the further 
improvement in East/West 
relations, buyers continued to 
inquire for Chinese bonds which, 
following Press comment, re- 

corded gains extending to four 
points; both China Boxer and 
China 1913 English rose that 
much to the common price of 

Following the Government's 
clarification of the Irish/EMS 
exchange control position, the 
investment currency premium 

moved higher, touching 80 per 
cent in active trading on good 
institutional support before 
closiDg 3$ up on balance at 79j 
per cent. Yesterday's SE conver- 
sion factor was 0.7220 (0.7367). 

Interest in Traded Options 
remained sparse with only 331 
contracts completed, compared 
with the previous day's 378 and 
last week's daily average of 403. 

confident remarks about current 
trading lifted Plysu 3 to 109p, 
while in a thin market, William 
Hanson put on 5 to 295p, Allied 
Colloids encountered late inter- 
est at 72ip, up 2 jr- 

Business in Stores was mini- 
mal and a mixed trend was evi- 
dent at fbe close. The absence 
of any developments in the bid 
situation continued to depress 
MFI Furniture wbicb lost a fur- 
ther 4 to 164p. House of Lerose. 
however, added 3 at 63p and 
Grattan put on 2 to 91 p. 

Apart from GEC, which 
softened a penny to 327p, the 
Electrical leaders made modest 

ing Allied Retailers, opened at 
194p and progressed to 19Sp on 
interim profits which surpassed 
the figure forecast in the Allied 
Retailers' offer document Else- 
where, the annual results left 
Northern Foods a couple of 
pence easier at 97p, but the 
return to profit at the hplf-way 
stage lifted FMC to 76p initially 
before the close of 73*p, just 4 
up on balance. The Board's con- 
fident statement „ on current 
trading attracted buyers to 
Avana, which improved 2 to 
70£p- William Morrison firmed 34 
to 97*p. but lack of support left 
Cullens issues easier with the 
Ordinary and A 6. cheaper at the 
common price of .126p. 

ANZ up 

Sotheby’s easier 

Australian banks closed firmer 
for choice on a combination of 
domestic aod investment cur- 
rency influences. Following pub- 
lication of the annual report and 
accounts. ANZ gained 12 to 312p, 
while improvements of 7 and 8 
respectively were recorded in 
Bank of New South Wales, 270p, 
and Commercial Bank of Austra- 
lia, 195p. Home banks edged 
higher in thin trading. Barclays 
hardened 3 to 365p and 'Midland 
improved 2 to 35Sp. In the wake 
of the Government's decision not 
to impose exchange controls on 
Irish capital transactions, Irish 
issues held steady to firm. Allied 
Irish put on 2 more to 202p. Dis- 
counts were friendless and ended 
with losses ranging to 10. Allen 
Harvey and Boss, 325p and 
Seccomhe Marshall and Campion, 
200p, both reacted that much, 
while Union declined 7 to 310p. 

Slightly firmer conditions re- 
turned to Insurances although 
the volume of husiness again left 
much to be desired. 

Leading Breweries closed 
quietly firm. Bass Charrlngton 
hardened a penny to 172p after 
Press mention, while Scottish and 
Newcastle encountered a good 
two-way trade ahead of today’s 
haLf-tiraer and held at 63p. 
Among Distillery issues, fading 
bid hopes prompted profit-taking 
in Matthew Clark, which reacted 
5 to 149p. 

A. Monk provided a weak fea- 
ture in Buildings, falling 54 to 
85 p on consideration of the chair- 
man's revised thoughts about the 
full-year outcome. Elsewhere, 
publication of the full report 
left M. J. Gleeson 2 cheaper at 
35p. In contrast, rare bright 
spots included Bowlinson. which 
improved 1-} to 26 ip, and Erith, 
a couple of pence better at 106p. 

ICI were slightly cheaper at 
3S4p. but Flsous recovered from 
the year’s iow of 300p to close a 
penny better on balance at 303p. 
Among other Chemicals, the good 
interim profits and chairman's 

| FOOD | 



F.T.-Actnrns Index- 

progress. Thorn put on 4 at 
360p, B1CC 2 at 127p and Plessey 
a penny at 109p- Elsewhere, 
Laurence Scott cheapened a 
penny to a 1978 low of S7p 
following the interim profits set- 
back. Racal Electronics added 4 
at 340p and Phillips Lamps rose 
20 to 81Qp, the latter helped by 
investment currency considera- 

News of the slump in annual 
profits and final dividend 
omission prompted marked weak- 
ness in Record Ridgway, which 
dipped to 474 p before recovering 
a tittle to settle at 52p for a fall 
of 20p on the day. Elsewhere, in 
the Engineering sector. Christy 
Bros., down 6 at 43p, reflected 
the second-half profits warning, 
but satisfactory interim results 
left Cooper Industries a penny 
firmer at 20§p. Adwest became 
a better market and regained 4 
to 290p, while other modest 
improvements included Birming- 
ham Mint, 12Sp. and Charles 
Clifford. 114p, both 3 higher. 
Leading issues made an un- 
certain start, but gradually 
edged higher. Hawker Slddeley 
firmed 6 to 224p and Tubes put 
on a like amount to 376p. 

Publicity given to a broker's 
circular prompted modest gains 
In selected Foods and Tale and 
Lyle rose 5 to 185p. Associated 
Dairies, in its new form includ- 

Secondary issues provided the 
focal points in miscellaneous 
Industrials. Although the annual 
profits were highly satisfactory. 
Sotheby’s lost 8 to 330p, after 
32Sp, on disappointment that the 
figures were not accompanied by 
share-slimming proposals. ICL 
declined 8 to 436p following the 
announcement that the group's re- 
cently awarded £13m UK Atomic 
Energy Authority order for com- 
puters could fall foul of the new 
U.S. non-Proliferation Act A 
sharp increase in annual earn- 
ings and a proposed 25 per cent 
scrip-issue helped Granada A 
advance 4 to 127p, while in- 
creased interim profits prompted 
an improvement of 2 to 19p in 
Diamond Stylus. Wood and Sons 
found support at 46p, up 4. 
while rises of 6 and 20 respec- 
tively were recorded in overseas 
concerns. Barlow Rand. 216p, 
and Broken HID Proprietary, 
690p. S. LehoEF Fobel cheapened 
2 to 39lp on the disappointing 
first-half profits, while small sell- 
ing in an unw illin g market 
brought about a loss of 6 to 40p 
in Anglo-American Asphalt. The 
leaders took a firmer stance but 
business was ' again small. 
Beecham picked up 5 at 617p 
and Unilever regained 4 at 540p. 
Particularly dull the previous 
day on worries about their over- 
seas earnings in the tight of the 
weakening dollar, Metal Box, 
302 p, and ReckUt and Olman, 
453p. retrieved 4 and 3 respec- 

Northern interest was reported 
when unofficial dealings began 
yesterday in Manchester United 
Football Club new nil-paid shares 
resulting from the unusual 20S- 
for-orte rights issue and the dose 
was £4 premium. 

A quiet Motor sector was 
featured by Wilmot Breeden, 
which rose 3$ to a 1978 peak of 
S2Jp on rumours that a state- 
ment concerning the talks with 
Rockwell International may come 

later this week. Elsewhere, a 
near -50 per cent increase in 
taxable profits had little apparent 
effect on Plaxtons (Scarborough), 
which closed unchanged at I17p. 

Leading Properties remain ed 
extremely quiet and rarely 
strayed from their overnight 
levels. Secondary Issues, how- 
ever, again provided several 
firm spots; the increased interim 
profits and the board's confident 
statement on dividends left 
County and District 2 firmer at 
a 1978 peak of 128p, while satis- 
factory annual results lifted 
Reliable Properties 4 to 50p, 
after 53 p. Ceutrovindal issues 
continued firmly, the ordinary 
and capital shares adding 3 and 
2 at 92p and 83p respectively in 
further response to the £l3.9m 
sale of the AMA building is New 

BP steady 

Oils remained extremely quiet 
and hovered either side of their 
overnight levels. British Petro- 
leum were finally unaltered at 
920p and Shell were a penny, har- 
der at 577p. The improvement 
in the investment dollar pre- 
mium assisted Royal Dutch, 
which added a point at £403. 

A dull Trusts sector had little 
to commend it Most issues 
drifted slightly easier and Jersey 
External closed 3 off at 160p, 
while Clydesdale lost 4 to 70p. 

An uneventful business left 
Shippings a shade cheaper. 
Furness Withy shed a couple of 
pence to 238p and Lots a penny 
to 3S4p. P & O Deferred how- 
ever, were a penny firmer at S3p. 

Textiles generally finished 
around their overnight levels 
following another idle trade. 
Irish concern Youghal Carpets 
added 2 at 33p. while David 
Dixoa hardened a like amount 
at 112p after confirmation of 
recent sizeable placings. Carpets 
International, on the other hand, 
dropped 31 to 56p on the efforts 
of a single seller. 

Guthrie, at 323p, recovered 3 
of the previous day’s fall oF 7, 
but other Plantations were 
quietly dulL Castlefield gave up 
5 at 230p. while Kuala Lumpur 
Kepong eased 2 to 65p. 

Good gains in Golds 

A further weakening of the 
dollar following the decision to 

Increase oil prices coupled with 
hopes of a satisfactory outcome 
to yesterday’s TJ.S. Treasury 
auction of lfim ounces of gold 
prompted a fairly substantial de- 
mand for South African Golds : 
for the second day running. 

The Gold Mines index -rose 6J5 
more to 140-2, while the ex- 
premium index put on 2.7 to 
10L2. • 

The share market got off to a 
firm start following a good over- 
night American demand and con- 
tinued to move ahead as the 
buHhm price tounched $221-50 in 
early trading. 

However, as. the latter began to 
ease on profit-taking prior to clos? ; 
ing $3,625 up at $216^0 pet 
ounce share prices moved simi- ■ 
larly although they were stfU; 
showing good gains at the close... 

Among the heavyweights rises 
extended to £U in West Drie- 
f on tern, £215, while improve^ 
meats of a point were common" 
to Raudfontein, £27}, Free State 
Geduld, £13} and Western Hold-' 
togs, £15}. In the cheaper priced. 
Issues Kloof advanced 23 to 496p, . 
Southvaal a similar amount to '■ 
431p and Bracken 5} to 70p. 

South African Financials 
mirrored Golds. De Beers rose 
8 to 364p to response-, to persist- 
ent Cape interest; the guying, 
was attributed to talk of- •;& 
bumper 1978 Central Selling 
Organisation diamond sales . 
figure due to be announced in 

Anglo American climbed 10 to 
296p. UC Investments 8 to 206p 
and Union Corporation 6 to- 246p. 

Although overnight domestic 
markets made little headway 
Australians moved ahead here 
owing to modest London support 
and toe firmer premium. : 

Diamond exploration .Issues 
recovered after Monday’s setback 
with Conztoc Riotinto, 8 up at 
268. Northern Mining 5 better 
at 72p and Ashton 10 firmer' at 
72p. Base-metal producers, 
showed Western Mining 5 to the 
good at 133p. 

Elsewhere, Sabina Industries: 
hardened 2 to 42p following news- 
of the discovery of a smalt 
hut high-grade silver-leadrrinc 
sulphide zone with a 400 feet 
strike length at toe South' 
Bathurst Joint Venture in Near 

Government Sec*.— 

Fixed Interest-— — 7009 

-Industrial -.476.1, 474.0 

Gold Minoa.-..;..-;"--- 14012 

OoldMines<EX-Spm) .1013 9645 

Ord. Div. Yield---- ' ®-°? fi -°® 

Eamings.rid % {full) 18:99 
P/E Ratio (net). O-— 8.1S ''■8JW 

Dealings marked.— 3,403 : 3,3SE 
Equity turnover fim. . — 65,55 

equity bargains total . -? 

so 68.72 

: e&ss ‘3 

13 i 7£fcH 

— 1 13,0191 

T Jfc04[;SWW:, 

15.83)' iA7a-.it644aL 
■. fl.w 

. 4,170 ; 4,icaf -.^ p 00tr 
78.22 -66.17 ;G7A7 
.14,659) i4ffi S4j 30.676 

■ ’.1 pur '47£(V. ^ '■ y 

10 Bm 472.1 'll 110 473.4, 

2. om 475.1.. 3 ,pm- 43S.< ^ 
Latest Index 01-Z38 SCR - 
.. •NH-7.83:- - 

Basis W Govt Secs. 15/10/26. Fbwd' iot. l^- 
Mines -172/9/55. Ex-$ pm. Index etartad June 18J2. 

1942. .-v":;: 

toduertrfal Otd, 1/7/SS., . 

"..SE .Activity July-One. ■- 

. -..Ob- 


. T 1978 Since Gampfiafn 
. High I Low High [ tow r 


Dedk4[ :Oao.- 

•//» , 18 - 

Govt Sec*.' 

Fixed int- 

Ind- ord.. 

Gold Mines 

GoM Mines 
(Ex-S pm)- 









49. IB 

(3/yrcj : 

'— Dally 

Gltt EdowTi 

:U&£, X47J7 
114.1 1 -UQ3 

■-:®o.8 :uan.7 
v.TWS: 7W. 


i Specs la«ve 

U -12^7 “138^ j 


The reiiow/«*e wwH gu q uo te/ Iw «i» 
Shire intonnatWn S*r»iC« yWarttay 
SiloKl new Hl«« aM Lows ter 1978., 



Pin, RlIttMO WB1J. 

CN Cl KESRI MG n> , : . 

Bai^Pwtens fo#OBm> 

C ''^* S ^ r ^USTWALS« ... 

Ci pi an Profile .Diamond Rvtes, 

.CJtrliUes Intnl. ^ 

. Crosby Spring W*WyF atgia **- ' . 


Vfitewt-SreedCTi^ ’j. 

PROP HR TY (31 • “ - 

Centrorincixl . HortJoy Ifld. Tnwt 

County and D istrict 

a»nwM)Bw l Unte 
- •• IMOaxmiAlS 

-Angfo-Ate. Aaotaiit -.L6i£(oSra=#j«0. ■ 
Fert(ema»(B.L- • ■ t««i» _ ~rr - •» 

FraaMInMUit- V- . MoosarrteApc ’82-se 

. -v . >nuim a* 

DU on CD.) iixin a^.uK 

NEW LOWS (20)' , . 


LCC Si'pc 19SZ-84 LCC 1988-90- 


Ireland 7izPC '81-83 Ireland 9MSC '91-90- 
Brnnswick Coro. Zapata Carp. 



LotirMce Scott 


.. - ‘.V 1 ’ ; - ‘ tto Down Ssutia : 
British rund* z- 1 :.*ao *s. 

■Con. • Dom,— -and ’-2 =• 

.-Foreign; v -2;.'- -12~j'^T- ■ 

/ndnstrmls. '271 27S: IMS '■ 

Financial, mo PtUp'. “ P 'ITS - . 28ff 

OHO -..JR- 

-Plantation 3. 

Rttier ez -T3 
Recant ^ -Issues .T.--. 4 •: .2Z 

Totals- 409 SM 1,498' 

T ' ' * " 



DEALING DATES Share Information Service 7.,. 

First Last Last For Stocks to attract money forihe 
Deal- Deal- Declare- Settle- call included English Property, 
ings togs tion ment Tesco, UJD.T-, Lonrho, John.'; 


Denomina-' 'of. .. 
Stock ^ tion marks 
Metal Box ‘New’ Nil /pi -8 •: 
BAT Inds. 'S5p 

Coral Leisure lOp. ■ 7; , 

EMI 50p . •• >7 

GEC • 25p‘ - T. 

bp £ir ■ 

RTZ 25p ;«■ 

Beecham 25jp • • . 5 - 

Burmah Oil ........ £L ■. 

Commercial Union. 25p 5 *' 

Glaxo SOp T 5 • ; 

ICI -fL'^-i-S. , . 

Marks &. Spencer' 25pj- • - 57 - • 
P A O Defd. - £1 ’ ••• .5 ■■■ 
Rank Org. • 25p . j; <5 

Dec. 19 Jan. S Mar. 22 Apr. 3 Brown, Westland Aircraft, Tal- 
Jan. 9 Jan. 22 Apr. 5 Apr. 18 bex. Burmah OH, Wit. Nigel and 

Jan." 23 Feb. 5 Apr, 19 May 1 Woolworth. No puts or doubles 
For rate indications see end of were reported. 

price 00 
2S3 •" 

.- 107, :*!• 
.138 . 

. 920' - -- 
'. .226 •• - l - 
617 ' ' 

; - .83 - '. 

.525 ' . - 
: . 364 

. ■ S3 ' •' 

240 , 

Chahg^ . MTS' 
outlay - hifdi''’ - 

• r.7(fem 

'..JL44 - 

349 .- 
- 954 - 
. ■263 - 
726 , 

■* 2 • . ; 


^ 1 :>V4ai 
r - ~ - : - 94 
.—x its . 


266 : 

: :93; f . 

233 • 

m --- 

164 ' 
981 / 



; 67F " 
76i : 
226 - 

The Chairman of the Board, Mr. I.G. Kennington 
summarised the main features of the results of the years activities as tmder: 


£23 ? 0S7,379 was received aud £15,523,712 was 
repaid leaving £7,563,667 as the surplus. 

PROFIT This was £383,160 after Corporation Tax. 
advances £17,056,272 were advanced compared with 
£12,019,733 in 1977. The number of mortgages was 1,296 
compared with 1,070 in 1977. 

LIQUID ASSETS Amount to £13,171,777 representing 19.3 % of assets 
£5,200,000 is available now or within 7 days. 

reserves Stand at 4.1 % of net assets. 

ASSETS £68,351,692 (£60,602,518 in 1977). 

The Report and Accounts were adopted. 

34 London Wall. London £C:Y5JD. Tel. Nos. 01-6062525/6/7 and 0J-58S 0114 (5 lines) 
Noverrc House, Theatre Street, Norwich NR2 1RG. Tel. No. Norwich 29833/4 
33*'35 Queen Square, Bristol BSl 4LU. Tel. Bristol 2 909 SI 
' 6 Brewer Street, Oxford 0X1 1 QN. Tel. 0S6? 45SQ0 
Authorised investment for Trustees. Member of the Building Societies Association . 



LEB. POUNDS : 35,000,000 

US DOLLARS : 5,000,000 

Medium Term Loan 


Prawdedby USto 

Tin AfdilijyaiTbrBsiaD Bank SAL- | 


Bawfie Audi SAL- BnuL 
B®quedulij»iettrOutre P/ferSAX.-BaruL : 
ByWos Bank SAL-BanL 
fiiafafl f rican ln tgnatiiBBd Baric SAL -Caro. 
Banqistiban^FlwLeCanimerce SAL 

Atdi African kitem^kmal Bade* 

BaruL Branch, 

Libyan Arab Foi^n Bank -Tri^ 

Arab Bark For Investment And Forapl 

vad8-AiHi Dhabi. 

Bated Arabe Expand SA.-Madraf. 

Arab Turkish Bank- ktanbuL 



Every Saturday the 
Financial Times 
publishes a table 
giving details of 


Latest | 

Renunc. 1979 

E 03 

9 a j High * Low | 


on offer to the public. 

| 8f 1212/1 | 

. S/12|2 1/12J 
|29/13i 5/1 , 
115/12,12/1 ! 
il5H312fl I 
j 3/l< 9/2 
I S/12'12/1 

I 3/1 | 9/2 



| 568 IBaeoham 

| 19is;&oulton iWm.) 

i 372 [Brown U.l 

71 Cappor Neill 

107 Clifford (Ctiaa.i 

101 Dixon ID./ 

SpmlFoster tJoltn/ 

140 Hoskins A Horton.. 

32pm Lep Group 

IB M. I_ Holdings 

48pm Metal Box 

18pm Milbury 

810 StothertAPttt 

67 Tarn Consulate 

6pm|York Fine Woollen 


For further details 
please ring 
01-248 8000, Exta. 266 

Renunciation date usually last day lor dealing free of stamp duty. 6 Figures 
based' on piecpectus estimate. S Assumed dividend and yield, u Forecast divi- 
dend; cover based on orovioue year's earnings . v Dividend and yield based on 
prospectus or other official eetimates lor 1a79. g Grose, t Figures assumed. 
; Cover allows lor conversion of shares nor now ranking for dividend or ranking 
only for restricted dividends. 5 Placing price to public. Pt Pence unless other- 
wise indicated, t Issued by tender. 0 Offered to holders of ordinary shares as 
a " rights.” " Issued by way of capitalisation. Sfi Reintroduced. 71 Issued In 
connection with reorganisation, merger or take-over. i||| Introduction. □ issued 
to former prek-rance holders. ■ Allotment letters (or fully-paid). • Provisional 
or partly-paid allotment letters. With warrants. 

is 20-yr. Red. Deb & Loans (15) sins 
ig Investment Trust Prefs. (15) 60.98 
17 Cami. and IndL Frefs. (20) 72.42 

t Redemptlen T»dd. Highs end lews record, 
issues. A list or. the caastittBets Is avafliMe ft 
Undea. EDO* 4BY. price 13p. by pest 22p, ■- 

1:13.46 BB.13 3S.13 .BBjOfliaWM' 155.09 rBKOS 65.03 6&XI4 
13.7B B0^& 5036 JtotiO j -QOJl 8p^7 r/tCLl'B-: t ^66.18 A, 

12.44 72.42 73.42 . 72.17 >3^.80, HJSS' }] 

! A , 

om the Pb bflshenr tiutr JEtesHSa) .Thn^^BrOtlas Mauss; -oma snuetr i> 


T ' ~.'. v " -':T- 5 


^ r • : '.' December 20 1978 

T, *ES 


A».'- «•■•’:- 


; : AW»y4MK TsLMnan, ’La. m 

tte. («L 

Minster Fund Managers Ltd. 

Provincial Life Inv. Co. Ltd.* 
222. BKheomae. EC2. 

frantic uiuu in ? B7.q -o a 3 35 

High Income 1117.6 12t0| -dJ| 1.7* 

Save & Prosper continued 
M-M7W33 Seattdts Sccwittef Ltd? 


swans-, \*Zi 

Scnrneid *3 

SnliWt H?. 

Abb»y Gen t« ._. -... ta n **‘ 

Etydtt* P«b 68.' 

AJSed ttuabro Group? Mb) 
HMArt Hw. IWwi D u uhnm t I 

01-9307333 PrudU Portfolio Unp<. Ltd.? (aXbXd |S |l vw« 1758 is! lil ‘ 1 

Wi| - oa « xn P^iT' EC1N tTtc ■*«?* % of. l :: - 

mLf (a) Pndeolai i«'-S 13551 ..,.4 4.79 ScW«*nH*r Trust Mngrs. Ltd. (a] (r) 

EBk - 

•-i yr^M=u=$$\ "3k 

< gavs.w™ Si i . - 1? 

: V. ilantiWi ' . • 

>-. . ^TfleM RL ~^ 8 - : 7^ 

G-T. Unit Manager? Ltd.? .-■ - ' 

. lb Flmhury Circus EE2M TOO . >■ 03-d 
C-T^^nc^ BX5 _86.7L-0- 


C.T. (ntl; Fund. 

G.T. Faer YdsFtL 

fi/& A. T*mt frVi) - 

5 Wayteign Road. Br en t w ood ' .(02773 22730D 

(X«A Z ___^3X7 SSAt-Mh 5-27 

Gartmere Fund Hastfen? 4aXf ) 

2 SL Mary Axe; ECSA8BP _1 ; OM 
CiBtemlcan Tit: 

" “TstUccJ 

Quadrant On. Fd 1105 1 

Quadrant Iramr 132.3 

ReRaoce Unit M«n. Ltd. 9 
Reliance Hu.-.. TunJnfesgr We in, Kl 

Anderson tMt Tnot Maaaqws Ltd. - ■*,. 
,158, FeoffturtiiSt, EC3U6*A^,- - 0234231 

Anders* UX--.—-I505 MJI -—I SJB 
Aaffarcbe r Uo» Mgmt. Co- Ltd, ;■• 

*, Notate SL.CC2V7JA- ; . ! 01 -<236376 

IntMHddrTuuL-^UF 17$~4 »2 
Jirbuttaot TSecuriftaL Ltd. (aX<0 V 
37, Qnren 5L, London E£4R1BY_ 01-2365281 
•r-Wi«eH~— -KM . —4 JJ40 

-.» ,Frit«l»* PmdL Urit Trt WMfc? . «LAun« »i «3|-oq 37i n „ l Q1 "' 

PMHBEaLtojrfcinB. ,'T- 0306 SOM Murray Johnstone U.T. MgstL? (a) P™d«tai ,1275 13Si|.„. 

Friends Prov. (Its. . Jjte.0 '47«~.-| J-iJ 163 Hope Streei, Glasgow, G22UH. 041-221 5521 Quitter Management Co Ltd V 

Do- ACtum. rjSI 653^4 AM MJ European ry? 9 8S)| \ 3.66 ^5AErri^!tC»lHP. K-i 

EJ T Untt Hnnm LUJV - ■'. • Oman Day Filter. Quadrant Gen. Fd.._..|10S 1 10*5} 

XfcFl'mmrv TOO * 02^=88131 Muteal Trust ManaflenP (aX«) Quadrant imame |l323 . U*4| . 

loFImoury Cutut, EZZW/ilD UJhMtUlJ^ 15, Coplhall Anr.. EC2S 7BU. 0I-6O&4B03 RfBlI1£ . Ub :. h « Ltd* 

tMir^Od -aJo Mutual Sec. piut__i50B 54 Jrii 4 77 WRanee Umt MOTS. Ltd.9 

i Sr 5 -no £2) Muliollac.TM jfij -Ety 7 79 RelLmce Hu-.. TuRMMsr WelB, Kl DB9 

■ J27«-L7 ‘ Jin Mutual Blue Up J43.4 47J -OS ■ & U Opportuuly Fit It* 8 71 *1 -2 1 

fSa-HJJ MuUal High VI?. — [5*2 6.50 SeBnrteT "Act ».. .W e 43^ _ . 

fM -- National and Commercial SeU«jeT. Inc.. — 142.9 iiM .— 

BidpefleH Management Ltd. 

fi, 6 L Tmt (iXl) l2cSm.Uniuj Wto 229J 5J7 38-40. Kenneth- S l. ManctuSler Obi -2 

SMnhdhMwt • -fl»77JZ27300 Cant. Dee. 13 1314 l12ar...] n 22 RldBPOeld lot. UT — 93 «o| .. 

5to|rieJ«h^d,Brt»«d .XCOTnZZnOB (Accwn _ Un|t; j Jijg.g l2^ J 4 2Z RMarMWd Income- _JO . 98n] .... 

■ . , . ■ * National Provident Inv. Mngm. Ltd. 9 irnthTrUiiit a r , . 4 — , — , 

S!Ci5SJ5S ,, ^ft'*t SS satK-n-^af jmaiB-SrC “ 
■$£a H iSrf «= a ppfi JiiEsj 

'■ -H5 “ m !S Ui m aS-Tg- M*«t waiing okTH. S & ft?- ci- fiSZvflR- a rIs - 2; 

- "m 23 TOO- National Westminster? ftS*' ’ N.c.SmfrCoyiFd.JSLT lilfl+o.; 

Kiffl 4.03. loL Ciwapiide, EC2V 6EU. 01*066060. RoHucAfld & Lowndes Mgmt. (a) 

- S-lt - Z-0 CaolMl (Aceunj 1650 1 4.46 St.SwW*t»Lanr.ldn-EC4. DlJ 

14J, Soutti Street Ortir.j. 

E.rupUtt Lh^._,2j: 

Ertra Inc. Tit SI 

0892 22271 mtoneWlt - .-.— 405 

BBWflbrdtt* «ol: 21 | tfi 13»Kr:.Js 

SeU«deT.lnc..„...{«.9 3.4 S.K 

Ridgefield Management Ltd. pSlZ&WS” a 3 

38-40. Kennedy St, Manetiesier 0bl -73fcB521 Propnrtv Slum 27 * 

RMorfleld lot. UT.....I9J «a| ...I 2 87 Stujclat Stt. M. 33 S 

RWgrli rid Income- _J« . OSnj ..,. | 9.« g. £ 19 4 

I 6 

il2 -0^ ?« 
rw -au 510 

1. 01.623 4200 

50 M .. . I 4.80 
62g 4.80 

Rothschild Asset Management (g» J- Hwnr Schroder Wa 5 g 

72-80. GMeteuir Rd , Arieibuiy. 0296 5941 , , 

32 K -oa 4.71 
J3 4 -qJ _ 
32 . T| 1224- 
?0lJ -02* Z72 
M« . . I Z. 12 
242<-0:| 5 W 
land-o; S9» 
& Ce. Ltd. 9 

H C. Eqint»Fund.._.J167 6 
N.C.En W .Rf..7-A. 102 5 
N C. I name Fond.—IUbi 
n.c. titer. Fd. niK.i(ag a 
N.C. Inn. Fd. lAcc.linl 8 
N.C. SmOrCeys Fd— J157.7 

Casual Dee. 39 11003 333 * 

1 Accun 1 [122 5. ,2c 

Income Dec. 19 US3S ! 

cAewm Ontal 2^..0 

General Dee. 2 M.JI 3.97 

lAecten.Uiati' 1C«I 113 d... 3 97 

Europe Dec 14 319 3- <M 3.12 

(Accirn. Umtsl 355 ?7.fl ... 3J2 

•Pn&CHaFdD«.19._i;;o 37u.a .3J 4.47 

•SpecEx. Dec. 5 «?. 4 a7lll 3 85 

•mcewrry Dec. 5 — 2034 209 ...1 4j9 

■For u> ewra I.t* rot, 

Scottish Equitable Fnd. Mgrs. Ltd.? 

26 St. Andrews Sq. Edlnour jh 031-5569101 

JJSSS!S“|S a|:H 1% 

DeUH9 is, Wrdncutaj - 
Sebag Unit Tit. Managers Ltd.9 (a) 
P0B«w5U,aadhrv. Hw.E.C.C 01-236 5000 
Sense Capital Fd-.. 134 C 35.61-021 4 57 

Seoag meow Fd ,3L. 32. 6J J 6.48 

- .- -^a 

37| | to«a,tnnd B iyMI 

S lncome Fd 1067 

MTAwl. UmTl 55.9 

tAcnnni'tJota) K3 

Capital Find _, — Ifl’o 


■ bljpti Fund 2 36.7 

I- J Qhhs (AntBny) Unft Tst. Mgs-Ltdr 

L* . : . : 'ZftdderlcJrtPI.. Old Jemry, EC2 0X-5B84111 


OmtaB -Tnej. ftWet - 

01-2365281 Godett (John)? ’ . . , ' 

—113-50 77 London W«H,EC2 <0-5885620 

sasssfe=ia» .®=d-ffl 

— U! NeetdriamdQrJ mCSr 

I.LZ ’8 84 Griehcsoa MBnagAuwitf Co- Hi 
n i 5S ~S9 Anatom SfanLEC2P as 01*06 W3 

Ertrp Inc 

Growth law 
Portfolio law. Fd. 
Lrtvmal Fd.tdi 

4.46 St. SwWihn Lane, Uc, EC4. 
8-J6 New CL. ExcmpL .ftJTd.l 

i: m 

Wd 12 

lr-7 . NEL Trust Managers Ltd.? (a)(g) JSSK^fc Ks 

Mihon Court, Dorttng, Surrey.. 5911 HlghYId. 0etl5,„ 534 

. ' :' Me (star 1595 62.61 J 5J2 (Acaan. UnKSj 713 

03-5685620 Nelstlr High Inc R8.7 513-01) 801 Merfln Dec li K5 

(MCarn. 9 t 4 

NeerCT-Excnm. .KJ24 0 13101*201 3.98 ,Rfc 9v 

Prlcei on Dec. 357 Nt.t deebng Jjai. 15. ... 


Rowan Unit Trust MngL Ltd.9 (a) rssu 
City Gate Hie., Flmtwry Sq.. EC2. 01-6061066 Iflcaane 
American Dec. 14 — ftS.0 4801 . .. J 166 Atom, 

'It!: 7 .: 


37.7] . . . 
ITuS -33 

20961 “ r: 


• -r ?44s Smaller Ort Fd 

. (NJ-, Eastern S, Inti Fd._ 

•; X IV& VCdraLUts.) __ 

■ i. • Foreign Fit 

.;- . . N. Amer.& liq. Fd. — 

Guardian Royal Ex, UoH M gr s. Ltd. 
ihyai Enhaeqe. EC3P30N - / 01-628 K 
(agiGwnRdUTst 1927 ^■‘•03? 4 

C- 1 SSJEUSmSUi Headers m> AdmMstratEm? Ii 

Ti^-i /317. HiphNobontWClV 7NL . 01-8316233. Premier UT tendat, 5 RariehU 

3«3-H Harwich Union Insurance Group (b) w—-™ — ■*» - 

po Bead, Norwidi, NR1 3NG. 060322200 Royal Tit. Can. Fd. Mors. Ltd. 
7T« ‘ : Group Tu. Fd 13616 3».6| +0j) 5.42 54. >rmyo Street, SW7. 0 

--H i-?g‘ ^rtKlS?rL’!!S v i 7 26.«“T 5 5 js ^ “ Dw * ,r “ "« * al A 

P^^1~~.ZZ ^ ■ fl:83 ?H Save & Prosper Group 

II a |'S PeaHUnflTu. 34.9 37 6M-0.4 5 37 4, Gnat St. Helens, London EC3P 3£ 

-M lAcoim. Unhs) N5.9 49fl -oij 5.37 68-73 Quern Se 1 EdJtWurgli EH2 4N* 

JZj 319 Pelican Units Admin. Ltd. (gXx) DeJ>«nos to. 01-&4 6899 „ 031 226 

ii? 81, Fountain SL, Mandwter 061-236 5685 Save & Prosper Securities Ltd. 

7j 3 rd 4S Pellean Units 1860 92. 4| -0.4| 407 International Funb 

— -_ [u - Perpetual Unit Trust bfngmtp ft) Cwui |?5 4 3Sflafl - 

98. Hart St., Henley on Thames 049126868 IH’ 

01-6288022 P crturiGp-GtlL V02 46R J 3.97 ■ U ?“-- G , r °* V 1 -— ' l 5 * “ 

-9681*031 438 Piccadilly Unit Trust (iXb) HW^neCl. 153 6 57.61 . 

12D4I “.' 

tuJ r. 

Sil ::::: 

34lS ... 

w»zr=jw Mjd n 

wwi Prictt a DrcenWr 15 Ne«t dealing Decenmer 29. 

:8i 7M Save & Prosper Group 
-0.4 5 37 4, Grra St. He lent, London EC3P 3EP 

-O-Bj 5 37 68.73 (]„,„ SL. EdMangh EH2 4NX 
(*) Oral) ngt in. 01- >54 6899 or 031-226 7351 

«. 5685 Save & Prosper Securities Ltd.? 

-0.41 4JJ7 International Funds 

i. • Security Selection L'.tf. 

01-629 8252 15-14. LmtoInMiwFielt I'.'Ci 

35.61-021 4 57 
32.6} j 8.48 

UmlftUlTUACC l»t.6 _ ... ... 

UlwIfiinTstlnc 1210 224| ... .1 4.J0 

Stewart Unit TsL Managers Ltd. (a) 

45. ChaHMte Srv, Mnterpn. 031-2253271 
TStewart American Fund 

Standard Unu | f - T 1 63 7| -! 51 1 54 

Ac am Units — .|62 ! 154 

W ill idrawal Ums |G, 0 CuQ-lZ] — 

•Stanri Brtttfh CaoPa* Fund 

Standard 11432 154 2(... I 4 00 

Amro, limn 'it? 2 my I 4.00 

Orafino r.i*»r i Fn 

Sun Ai Gance Fund MngL Ltd. 

Sun Alliance Hie.. Korvux 040.' 64141 

Em Eo.Ttx Dec .13.. K2T4 0 37 <8 ; 4 48 

grW Fjrmrr Fa. — («.« 202.01 . | 4 01 

Target TsL Mngr-.. Ltd.? (a) Ig) 

31 Cretham St.. EC2 Deaiingt: 0296 5942 

01-833 6936-9 

^: 0, i m 

R! f^ 

**nSrS isr&&. 

Barclays Unicorn Ltd.? faXcXg) 
UnKnmHOL 252. Ranted Rd„E7. •• 01-534 5544 

t -QJ IS 

; -03 6.06 

C -<U 6.11 
7 -01 4 _J1 


r B«- 29. 

« ! > iN 


Do. General 
Do. Growth Act.. 

Do. Income TsL . 

, *Do. Prf-A'm-TsL. 

-Fncn U Nee 
j Doisarttew — 

; Da Tmate Fund 
Do-W1di*Ue TsL 

t B'ta ln.Fd.lnc.:.—-. (03- O.9-0M 522 

Do. AecwL 173.7 . 76Q -05! 5.22 

■ Baring Brothers .& Co, Ltd.? (aKx). - 
'-Sfl.LeadManSL.EC3. 03-5682830. 

Stratton TsL _ML6 . 18J« _'J 4.06 

SDd.Acon Jaao 731.3 J 4M 

HeUsdi. day December 20. - 
BHhopsgati Progressive Mgxnt- Co.? 

9, UshomMA EC2, 01-5886280 

B'5arPr*’0ecJ9 {1814 19S.«+L5j 4J33 

BweTwood. Essex. 

UJL Funds 

Cabot Re c o very— ^1 ... 

Cap. Growth lot I ... 

Cap. Growth Bcc. — ] ... 

Income & Auers [ _ 

HMi Ipunw roods , 

H3W1 Income 1 — 

Cabot Extra Inc i ... 

cZSPreL&GIR ] ... 

Sector Fundi 
Financial A i TU-^. -| - 

OKA Nat. firs | „ 


Cibw — 

Inteniatmai — 

VMLWdleOee. 15 Zj — 

Antony «tbbs Unit Trust Manager* Ltd.. 
3 Frederick 3 Place, OM Jewry, EC2R 8HD. 

a r = ii a 

'-217234! 0)-588 4121 . 

. Entra Income |289 

f 5 « Small Co'sFd. .. - 39.4 

1 Zte Capital Fund 42.9 

J 289 inL Erns. & Assets 433 

J 627 Rnratefund 35 4 

1 Accumlir Fund 64.9 

IS iCTS'":::-: 

Capital I? 5 4 

umv. Gruutfi |to5 

Incruriaa Incsmt Fend 

Hl^h-YleB.- 153 6 

M* Income Fundi 

Mian Return |b6.9 

Income |42b 

UJL Fvmh 

UFEouity J44S 

Oieneas Fmds(i) 

Ewok I as s 

Japan 1102 9 

sXAsia (371 

U.S 1 65.6 

38fWI-0.2; 2o9 
26.« -0 5 4.42 
■ 71.5) -0j| 222 

57.61 1 7J5 

le-i ■~,7T| - ■ | ;-sf IT/iJ'q riniJ '? v rl? Target t«. uec ju- LLsifei-4bi 6 

8-S iffl.— 12 sVls; [i?v 3?a n3 WDoJlcc. UnKS 2^0 2 305 5 -oi 6 

i-i Ji jl -■ U S 65 6 ?5al|^ TarietG.ll Fund _.. . 1233 12iC 3 

^-2 ‘ia J ^2 7D,N 1,1 0t ’ 1 TajgeiGniwtIi... -224 70 5 *02 4. 

17 28.B . .. J 2.00 Sector Fundi Taroet Pacific Fd J ft -> Q 7 -oi i 

£l 23.3 — 0^ 3 40 Commodity 175.1 fO 71 -0.3f 4 74 Do^Sinw Units.. 77 h 29.7 -QJ 2. 

0. Ltd.? (yHc) Fpft9Y rr , 664 73-3 -0.9< 2 04 Ta-gef Inv .314 33 8 *01 3 

C2A2RA 01-623 M93 SjSSlnShfia 1-1 ^ rSm 0 *'* fe* 'HI 5 

S2.4 UU| — 1 4« SeTMIrltemat .1240.4 m.9 2 48 ~ T 15 i 14 7 ‘ J 

297 8m| . - 4 4.42 Select Inca me Bli 5to)_-0.l] 7 7j T^ Special Sits 207 21 7) -0 jj 5 


= fea.M 

AimraRan— ^.J — — ' _ — I — 

Far East ~~ ZZ ~ — . IJJ — 

= - ip*? 

M5&k±| r - :d’.r 

SmnUrtCos. | — — | — 4 — 

Far East Fd pS.7 Pflf . .. J 2.00 Sector Futris 

American Fund 121.1 23fl -0^ 3.40 Commodity 1751 

Practical invest Co. Ltd.? (yXO f^iSecsT Hbfll 

44, Slnomsbury Sq. WU A 2RA 01-623 6893 HiStSSfaSTFiri? 1 
Practical Dec. 13 OS2.4 JU.7] ,.„..J 4« SeTretlntensit |240.4 

-W Practical Dec. 13 052.4 163.71 4 42 Select intensit 1240.1 

_ Actu m. Urit s Jaf? 23?.2| - - J 4.42 Select Income.^. . 

Tarqet Commodity. (J4 S 

Target Fmansiai -leC 4 

Targer Candy it 8 

Target E«. Dec 20- L9?i 

6 Co Acc UnKS 2<0 2 

Tariel G.lrFund 1133 

Tame! Growth 214 

Target Pacific Fd.- NS 

Do. Relnv Until.. 77 h 

Tamer fnv._ 514 

TgL Pr. Dec. 20 1544 

TqL IK 27J 

TgL Pfel 15 4 

Tgt Special Sits 2t>7 

7c *0 7, 
2190? -4 «n 
305 5 -b i' 
124 0 

■os to^ 
267 -01 
29.7 -Di 
33 8 *03 
2 625 -4u 

m : .1 

217) -0J 

*aa 4 7? 
*0 7 n31 

Umt Trust Account & Mgmt. Ltd. 

King MJuam Sl ECAR 9AR 01-621- 

Fr.ars Hie Funs 140 4 42.4} .... J 4A 

Wwier Grth. End 30.9 . 32 U .... [ 4A7 

Dr.Accum 36 8 38i) ) 4.67 

Wleler Growth Fund 

King william Sl EC4R 9AR 01-623 4951 

Income Units 130.9 3261 .._ J 467 

Ann Units -..136 8 3«J 4.67 


_ ( | — ) Abbey Life Assurance Co. Ud. 

Ace. Uts.**Oee. 19 (221.4 2»B+1._, 

(Tmte int Dec. 12>_nM 9 179fl 25? 

- UcomU Drc.12— ..|l872 19921 259 

Nsn aft. day *JhL 2 **ta. 9. 

^ Bridge Fund Mmagm (aXe) 

'Regis Hie-, Xhn Wfl&am' St v 'EC4.~ 01-6234951 

si'^ssi m 

'effis==3B Ud m 

letemtl. Intt C 

Da. Acc.t,. I! 

► Dealing *+ues.- tVW: TTIws. Priasflet'lil3»14. 

Britannia Tnst Maragenent (aXf) 

. 3, London Wall BuMq*, London Wall. 
Xonton£C2M 5QL ■ 01-6381^7870479 

fc BBK==K m— k 

J ■ _ 'HUI Sahmei UrttTsL BlBKlt w . 

L Co.? 45BeediSL.2C2P21X 03^288011 

01-5886280 Cel British Trust 1497 lM 2al - 5J3 

! VLSI 4J73 tgllmlTraa 3 a A 37J] -O 327 

• 4J3 - (e> Dollar Trust MS 7« .— Xji .2JB 

179.g ,._1 25? ul Capital Trust 29A JLJ rO-fl 4-76 

19921 259 tbl Financial Trusty 90 J 96A -lB 4 JB 

1.9. IbJlnconwTrua 263 -2flS 7.® 

(olSett^tty Trust. 53. & 5521-0.1] S.4Q 

<b* High TWO Tjl _|29 J . sQit^jf' 

t§ futfl?? («Xl) 

-03 7 xn ZS. Christopher Street E.C2, . 01-2477243 

3-S Intel. Inv. Fund {29.4* 316*1 - -4 7.50* 

|J| 'After Set. Krista. . 7 - . 

A 65 Key Fuad Managers Ltd. (aXi) 

'■'■i niPi 25.MUkSt,EC2V8JE 1 01-6067070 

1-3 Sl Paul's Ctaechyani, EC4. 01-248 9; 

Eouiey Fund H6.3 3831 -121 - 

Entity Ace 313 33.8-1.1 _ 

Property Fd 1528 160.51 *0.2 - 

Properly Acc. 1*3.3 171.9) *02 - 

Selective Fund «9 dpi -r.C - 

Convertible Fund—.— 134 8 141.9 .... - 

PMoorr Fund 125 2 131. « -*0.1 - 

VProp.Fd.Ser.4 13)7 140.3+02 - 

fMan. Fd Set. 4 1353 1421 -2.1 - 

VFquItyFd. Ser.4 35J 373 -1 1 _ 

PConv.Fd.Ser 4 315 0 120 . . - 

gMoney Fd. Srr.4. .. 1129 13a9| +0 2 - 

Prices at Dec. 19 Valuation nomslly Tues. 

Crown Life Assurance Co. Ltd.? 

01-248 9111 Cr<» n Ufe Hse., Wdking, GU211XW 

Albany Life Assurance Co. Ltd. 

31. Old BuriirqionSl^ W 1. 01 

_ Mang'd Fund Acc .....ft 03. 8 

_ Slang'd fd, mem 101 7 

_ Mamj'dFd. UUL...„. 1017 

__ Equity Ed. Acc 98 0 

Equity Fd. I non 963 

„ EtjaMv Fd. Inlt 96 b 

PrgpenyFd. Acc 465 ■ 

_ Properly Fd. Incm .... 966 

_ Property Fd Inn 94 8 

r Inv. Td. Fd. Acc.. 1M9 

_ Inv. Tu. Fd. iKm. ._. 984 

ln» Tu. Fd. inlt - 99.2 

Fixed im. Fd. Aa 1003 

' F«d. InL Fd Incm. 991 

Inter'i. Fd. Acc 1081 

InUr'I. Fd. Incm 1001 

-'CahMAcc*— — 

% Cemm&lnd n -^_J 

Commodity 2 

Domestic ] 

VE gutty Fd.Acc. 
« i ' _7 j gfited Int. Acc. 
B1-6067D70 J wGtd.MonerFd.Ac. 

VI nil. Man. Fd Aon 
V Prop. Fd Acc... 
jM ole Inv. Act. 

"■ Money FJ.Acc_ 98.Z 103 

01-4375962 Money Fd Incm M6 100 

J - OlsL Fd. Incm 1031 108 

J — Crown Brt. Inv.'A' 1592 — 

•' EjOra Income-. L'-JJ 
- , ' Far East Z1 




Uehtwnrt Beits oa Unit ManaiertT s ", 
20.F»ctmhSt,E.C3. 01-6238000 

m|Ep mm 

l nvesLTsL Snares — 

m wm 

J^tfesslonaf . 

. Property Shares — 


*~r -rtf 1 !' □ Status Ctaige--— 1 
UlU* Energy — — — 

Unw Enetgy— [320 34.4J — J 257 

The British Ufe Office Ltd? (a) '-- 

Rehance Hse, Tunbridge Wells, KL . 039222271 
•BL-BriBshUK... 1 5L2 542 -01} 5.6S 

a Batutceiri- -M7l . 5L3 -L« 6.05 

Dhridend*— 4W -a3 
*Frttts Dec.. he*l deattag Dec. 27. 

Br ovra SMpley A -Co. Ud.? 

Howl Founders CL, 'EC2. 01-6003520 

BSUnteDrc.U JB7A 2392 j 4.g 

DdCCCl DeC.U__l2KL9 5C30| — | 4.78 
Baade Trusts (a) (i)'- 

m ■ iiriss. 

firowtt Aexajm.—JJjaa sag ....J sot. 

' CrOWBUucome ,tW.4 3?.fl — 1 IS 


y'i ZiSSSis- 

\r. ' 

^SS^.3r-m Sa "d “ S? W 

Canada Lite UiUt Trst Mnps. Ltd.? . : . 

Z* High SL Potters Bar, Herts. P. Bar 51122 Income 
ten. Gm PUL — l_^ra?4 ■ 4La-eO.ll -*.« Do tAc 

: - Z4 High SL Potters Bar, Herts. 

sae&=«.. : . & 

. .Do.lnc.Cfct. .. . _[J3.B . 35.1 

-• ■Dalnc.Acom. (451* -4/J 

.Capet. (James). Mngt. Ud.?, 

-mo. Old Brand SL EC2H. 1BQ 

H^Yhl^iLTK'f J35 7 '.8^d fc»'’ AMEV 6^my Fd — ; 

High YW.Fd. Act.. 1^466 5fl3 ameveSSm. 

L -G C Unit Trust Management Ltd.? — 

The Stcdf Exchange. EC2N 1HP, ' 01-5882800 AMEVMtaPefl Fdr 

^s&ifeTFinijjii 7 m-i j$- 

Lawson Secs. Ltd.? (aXc) ABCTgiamflngtaa 

37. Queer ’5 SL. London EC4R1BY. 01-2365281 J^Sme " 

tftow. Maleriab [38i 4LZ 6.02 ‘InL Growth 

fCAroun. Unttsl 43.6 . 47iS ._.. 6 02 

“Growth Fond 56.*. ‘ .— \ 2.M 

'(Acosu. Urritsl....^. 6L4 —I 2.64 For Arrow 

JtClltaoit Warrant - gj. . .. |fl.d -0.7 L82 . . Pravldewce Cj 

itAraSJnlttC^I a* _ 23.'?,.":: CLSS 

Deal. *«tan. *1&s. ttWK. t Times. Barclays Life Ass 

Legal L GeneraLTyndatl Fund? 252 BMta w, E.7. 

10, Canynge RoacL Bristol 027232241 

Dh.Nov.14_HL_.i6L4 660] J 4.85 

lAcaro.Unrtsl J794 84 .0) J — 

. Mndsn. day Jantaiy 1, 

Leonine Adahnstmttoh-Lirf. 

Z, Kdcr Sl, Landaq W1M 61P. 01-4865991 

lSBS=i=B 51 tn X& 

VlgyOs Bh. Unit TsL Mngrs. Ud.? (a) 

J5SS 01-6231288 

SoitSmCiTim^i . §ii+8.f 2il 

WoritfwMr Gwth._._ &a 56.3+01 1.96 

Do. tACtun.) 67.0 • 7Lffl +02 1.96 

Income S33, 8?^ -05 W9 

Do. tAccum.) 1163 . 125.41 -C.7 U? 

G' Id. Mon. Pen Acc 

Prop. Pen. ACC 

I’ple Inv. Pen Acc 

AMEV Lite Assurance lid.? 

Alma Hse, Anna Rd, RelgaU- Reigaie 40101 
AMEV MMlned. — P45.2 153.01 — 

iplr: = 

iBBWfcfti 2 Si- = 

AUE V Pniu. Fd. 99.6 ,lM| ,. . — 

Crusader I mu ranee Co. Ltd. 

Vincula Home. Tower PI.. EC3. 01-626 80 

Gth. Prop. Dec. 5 174.4 84 J| . — | _ 

Eagle Star Imur/Midiand Assur. 

Lloyds Lite Assurance 
20. Chiton Sl , EC2A -V- 
M.IL Gt Nov. 30 . ; 1 3SM8 I. . — 

0s5-A'Pr DetJ4.. 1«0 151 ri . . . — 

0p3-A'E4L Dec.14. .1134 6 It’jl .. — 

Op 5‘A'My Dec .14 . 1£5 4 164 : .. _ 

Dpi A'Man Dec 14 ; 7 l5|« . , — 

0m5'A'Dw Dec 14.|;:43 UOtL.J - 
London Indemnity G Gn!. Ins. Cc. Ltd 
18-20. Th» Forbory. &B55U. 

Money Manager JJ J ! 35 61 -01]- 

MM. Flv.ltle hsj 31 3 - 

Fi>rd Interest 1 34 J 36 3) ....) — 

The London & Manchester Ass. 6p.9 
Wimiadr Pars, Exeier. 0392-52155. 

Cap. Growth Furri 236 6 — 

ifivv.Exenoi Fd . 140 5 ... — 

g iempt Prop Fr 9q 8 — 

In*. TsL Fit Li 6 7 ... — 

«iMe Fund 115 0 — 

Im. {ruB Fural 137 8 ... — 

Property Fund....... ... lit ... — 

Royal Insurance Group - 

Me*. Hail Place. Liverpool. 051-2Z7 4922 

Ro,at Sbietfl Fa >245 7 154 J| -L7| — 

Save & Prosper Group? 

4. Gl.St Helen's. Lndn . EC3P3EP. 01-554 8899 

01-626 8031 Gid Deposit Fd _ 

I — MAS Group 

1. TWead needle Sl EC2. 01-588 1212 

Eagle/Mld. Units. _...|53.6 55 6J +0.!| 616 
Equity & Law Ufe As*. Soc. Ltd.? 

Amerstam Road, High Wycmnbe 0494 33377 __ 

sss^==m m^~ wff&iW ® 
MtfalB jM - I “ ill 

General PortfoRu Ufe Ins. C. Ltd.? Rrcovr-yFu. Ba...... ^733 . T. 

60 Bartholomew CL. Waltham Cross. WX 31971 

MAG Group 1 ? 

Three Quays. Tower Kill. EC3R oBQ 01-6264588. 
AmeficanFd Bd.*._ -149 ? 52.51 _ ...[ — 

01-588 1212 Conv. DepoHt* - 130.9 

Eu^ty Bond** 

E..YiHdfiBd *.„ .. 

Family 79-aO** 

Family 81-86**-... 

Gill Bond—* 

. intemaCM. Band**. .. 
Japan Fd Bd*_. 

8a' Mr Fd {1304 IMA] 

Propert/Fd* J162.7 1721 

Gilt Fa (122.9 }24f 

Depout Fat _ 126 7 1314 

Ccno Pens Fd T. ..12110 Z122 

Equ<tyPens.Fd 185 8 196J 

Prop. Pens. Fd.*._ ._ ZJ7.B 2SU 

Gilt Pern. Fd 95J 1002 

Depos.Peas.Fdt |]&28 10839 

“Prices on De Center 19. 
fWeekfy deafaas. 

Schroder Lite Group? 

Enterprise House, Portsmouth. 

Equity 1 __ 230.9 

Equity 4. 226 0 234J 

Fiirrf Int 4. . 1385 1453 

Managed 4 1362 1434 

Overseas 4 85 9 90.6 

Property C 164 9 173 7 

K & S Govt Secs. 4 ... 123.4 130.D 

B.S Pen Cap. B 125) 1313 

B S. Pen. Acc. 8 .... 1381 245.C 

Mnod. Pen. Cap B .... 2126 223.9 

lEP. 01-554 B899 

luy+La — 

129 q —Oil — 

2SLB+1.7I — 

Mngd. Pen. Acc B_. .Ii 
F. lid. Pen. Cap. bT 

= . pSfSnS n£pdj25 w * 44 7I rd z 

— PT0I10. Fxd. Int >473 50 0] .. ..} — 

Prices m *Orc !3. -Dee. M. •■■Dec 15. 
Merc hurt Investors Assurance? 

Leon Hsr.. 233 High SL Cra>tfon. 01-686 9171. 

For Arrow Life Anuruice see" 
Prorldewce Capitol Life Aswwanu 

Ba rc lays Life Assur. Co. Lid. 

252 Ronda-a Rd.E. 7. 





Do. talta 

D, ^n'cAec 

•EuTHiTinib ralue D«. 20 

• 8011 1 __ Gresham Life Ass. Soc. Ltd. 

9m| !";1 — * 2 Pms* of Wales Rl. B'nmuth. 0202767655 

915 ... J — G.L Cash Fund 99.2 104.4] — 

G.L Equity Fura 1094 115.2 ... - 

G.L. GUI Fund 1127 1186 ... — 

« G.L Iffll. Fund 1112 117.1 ... — 

ranea. G.L Ppty. Fural 1027 103 1| . . — 

Growth & Sac. Life Ass. Sac. Ltd.9 
Weir Bank. Bray-Ori-TImiim. Berks. 0628- 34284 
01-534 5544 FtalMf Finance. -.. I 106 5 I .. .I — 

.. .. J — Property _i| 

M---. 3 

0202767655 Equity Pens 1 

Money Market 

“ Manev MM. Pens ..._ 1805 ....„ - 

" ' Z ' Deposh - 1321 . .. — 

• Deposit Pem 1464 — . 

Managed 109) .... _ 

Maaiora^yns 1441 — 

. Lid.9 Wl. Equity 486 — 

M-MLwna Do- Pens UB.1 .... — 

0628-34284 inti. Managed ICO) — 

— Do Pens - 1021 — 

MW “ BEL Pensions Ltd. 

...._! — Ml lion court. Dorking, Surrey. 5911 

NeJn Eq Cm 818 861 — 

Nelex Eq. Accun 1182 124.4 -1.7 — 

01-2837107 Nele« Money Cap. .. 62J 65.7 — 

I J __ Mere* Mon. Acc 62? 714 — 

Nele» Gth In; Cap. 49.4 52 0 — 

ed? Nelex Glh Inc Acc- . 515 54.2 .... — 

id jqqmi, Net Mxd Fd. Cap .....49.6 Sir ._... 

“-4990031 Nel Mrd. Fd Acc.. _ 51) M0.„.J — 

| — Nerl Su6 day DecmWier &. 

... .. - NPi Pensions Management Ltd. 

\'Z~ — 48 Graceduch Sl , £C3P 3HH. 01-6234200 

..; . — Managed Fund 1157.6 164.2! • ] — 

— — Prices Ore 1 Neil dtahoo Jan. 2. 

— - New Zealand Ins. Co. (UK) Ud.? 

'••• Z Mai Hand House. Southend SSI 2JS 0702 62955 

”7’’ Kiwi Key Inv. Plan ... 1528 15751 .... — 

. ... _ Small Co's Fd 998 1059 — 

— Technology Fd 108 7 114.4 .... — 

_ Extra IncFd 950 1DO0 — 

_ Extra Int DHL Fd . .100 2 105.5 — 

.. .. _ American Fd 915 9*3 -22 — 

. 1 _ Far East FJ - 1095 115.2 — • 

_ Gill Edged Fa 1060 lilt .... — 

..._ — Con. Dr wan Fd 98.8 104. Oj . . — 

— Norwich Union Insurance Group? 

“ PO Bo« 4. Norwich Nfil 3NG. 0603 22200 

r '. Managed Fund 2180 229 « +01 — 

01-387 5020 Sir." =. 

— 4 ‘ — Fired Im. Fund 318 159)1.... - 

Deposit Fund. 1089. 114 ij ... — 

Nor. Urrt Dec. 15 — - 215)1 • — 

01-686 4355 pearl Assurance Unit Funds) Ltd, 

— 252. High Holbom.WClV7EB. 01-405B441 

1'tj 7 Managed FurW 11152 • 12131 | — 

-Sq _ Equity Fund 1193 1253 — 

_ga _ Properly DhJ 1125 11151 ... . — 

Z Property Acsum |1S6 6 133j| 1 — 

I. ... — Pftoenbr Assurance Co. Ltd. 

*21 — 4-5 King William St., EC4P4HR. 01-6269876 

• *.: ilwai^ -„ 796 W-71-14 _ 

b +- ;h«UAmeric*fi — -I®- 6- WJ] V 

■ JVces oiuec a. Next deaMng Half Jan. 3. 
- " Cartful Ub» Fd. Mgrs, Ltd.? (oXc) 

- r ' Whom .House, Newcastle-upon-Tyne 
: -■ * Xmbm I69J .. . 7X7} — I. 

UntETZlBJ ■- 875I..._J 

■- SiSfclWt.YleWJ — _M20 443 - -J 

V Jto-ACOJCL Units ' SM ....J 

.• -J! ■ Mem detwg dale January 3 

■eO.ll 4.M Do.fAttum.J lib) -Q.71 6.29 

+0j 4.44 Ejaraloawte. — 60.4 - WijFO) 8)3 
+0 ilB Do.lAccum.) — :.. _|70A , 75.9| 40j( 8J3 

*° Uoyd’r Ufe Utet TsL Mngrs. Ud. 

‘ - :• 72-80 Gatehouse W_ Aylesbory. 0296 5941 

«««D. ^tecum 1165) 17L7| j 4.73 

■a ll ‘ 01-6264588 

le Jan- 3. See also Stoc,k.Exchsnge 

fkWeS .. . ‘. American ^ 1436 

Beehive Ufe Assur. Co. Ltd.? 
71i Lombard SL EC3. 

Btt Horaa Dec. l-t-| 13233 | 

21165 AiKtrahelan 

.. 884 . (teaxn. __ r — . 

_ . AM- DiropffljndGiwiv--. 

1 .• -j! •._* ••• Mem Heating dale Jammy 3 Converrion Growth 

1: ti&am-FuBdit ■ .- -v --- J- - z - - 

; r- iM/Udofsoie, London, ecz- - oi4384ia 

zmassatsm-,- i=n» : S 

-V*W«rtttet«Sdil lawsL-Fd*. - WkwiUWBL 

>; tfLoqtaWUtCCffllK.. .“ 01^5881315' ftSStt - 

£< iKU>rNov.Zl 1131.98 — | J 7 JIB n^olta 

-* 1 tern Nor. 21, -—.^5233 — — : (Acemi, IWtsh 

~ OUnoutOkiiT noiiaye m Sig. Darlilcs. - 
. F»r Charterirawse Ja^et see James Fmby - mcana.'(ifiMs}ZZ- 
;r- s ^hbfblfl Tnist Mariners Ltd? UX«) 

- < •U. HfwSL EC2M 4TP. , - 01-2832632 Japan ._Z_. 


Canada Life Assurance Ce. 
ZArWghSL Potters Bar. Hens. 

EqtyGlhFdDec. 1 | 617. 

Retutt. F«d. Dec6 — 1 120 J 

Lamflunk Sees- 54.25 LO.lfl — 

Larvaank Scs. Acc ,.117.9 12X11 +1 J — 

C. i S Super Fd ) n.971 | ...-} — 

Guardian Royal Exchange 

Royal Exchange. E.CJ 01-283 711 

Property Bondi 1147.0 205)] .... 4 — ■ 

Himbru Lite Assurance United? 

7 Old Park Lane. London, W1 01-499 00 

Fixed InL Drp 128.2 1350! — 

EaiHy- 184.6 194 « — 

Property ..._ 17X9 18X« . - 

Managed Cap,— 145.6 wl _. - 

Managed Acc .. 18a B 190^..:. — 

Overseas 1252 131* ... . _ 

GW Edged 1268 133.3 . — _ 

American Acc 94.6 .99.3 .. .. — 

Pm. F.I.O ep.Cap 13A8 137.H — 

Pen-F.I.DeoAcc — . 155 Z 163.41 — 

Pen. Prop. Cap— ,34.7 . ... — 

:l AS - 

Cauodn Assvance Lid.? 
XOWcWy, VW eddey HA9 0NB, 
EtMty Onus 

IM)7T17fVI AroenorACC •».« 

D3-6Z31Z88 p^pj.Dep.Cap 1308 

I .—.| — Pen.F.1 .DeoAcc 155 2 

Pen. Prop. Cap 214.7 

Pep. Prop, Acc 231 1 

d Pen. Man. Cap 2125 

P.Bar 51122 2711 

— Pen.CUtEdg.Cw 12X9 

J J — Pen. Gill eS Acc — 1306 

Pen. B.S Cap 127.7 

Pen. B.S. A q 147.6. 

Pen.DAFCip 1 

01-9028876 Pen. DJLF. Arc 1 

10051-1) — 

ijf ? 1 = 

il i 

. .." — 

79.* —17 — 

42.g — 

.293-05 — 

-a = 

• Cwnwt value Decenter 18. 

CilM Ufc Assurance? 

CooiHBi House, Ctopei Ash Wtan. 0902 285! 

W 1=1 = 

Oarfarhause Uqm Gp.? 

Hearts of Dak Benefit Society .. J»ana9«JFund ... 

IS-^Turtaock Pbcr WCiH 9 SM 01-387 5020 
H earn of Oak 070 39.9| — need Int. Fund 

HHI Samuel Life Assur. Ltd.? S5fumt B o£ i5." 

NLA Twr., Addtaombe Rd., Cray. 01-6864355 P; jrJ Assuraitci 
♦ P roperty Units 
Pnmerty Series 
Managed Units - 
SLanaged Series A— 

Managed Series C 

, Money Units 

Money Series A. . 

Fixes InL Ser. A 
Equity Series A.. 

Pm. Managed Cap 
P ns. Managed Acl. 

Pns. GTeeu. Cap. _ 

Pra.Cteed.Aa — 

Pens. Equity Cop 
Pens. Equity Acc 

Pro Frt.InLAn 
Pens. Prop- Cap 
Pens. Prop* Acc 

F Im. Pen. Acc. B 9&2 103.4] J — 

Money Pep- Cap. B„ _ 97 8 103.0] —J — 

Money Pen. Acc. 8 ... 100.0 iKJ 3 — 

Prop- Pen. Cop B..._ 1090 115 0] _...J — . 

Prop- Pen. Act. B„, Ills . 117.4} _..J — 

Scottish Widows' Group 
P 0 Box 902, EdiidKirgh EH16 58 U. 

031-655 6000 

lna.Piy.Srs Dec)5 11075 107^ 1 — 

inv. Ply. Series 2.. _. 10)4 106.8] ....J — 

invr.L Cash De:. 15- 100.6 p5.a....J — 

E» UL Acc. Dec. 6 — 1429 ...,J — . 

Ex UL Inc. Dec 6 _ 135 3 SjLU 1 — 

Mag. Pen. Dec. 13 ,_l272.4 Z7Z4] _ 

Solar Life Assurance Limited 

10.12. Ely Place. Loodon, EC1N 6TT. 01-2422905 

134.3 -0J 


178* +0J 

98.7^+0.11 — 
96.N -0.* — 

1 Z Wealth Ass 1125... UBJ ... - 

j Z EB'r. Ph.Aii .,.76 6 T...J — 

Z Eb'r. Pti.Eq E |76J 80) ..._ J — 

Prop. Equity & Lite Ass. Co.? 

119 Crawford Street, W1H 2AS. 01-486 0857 

Solar Managed S _ -1127.9 134.7] -OJ — 

Sotar Property 5__ Ul.? 117.8 — 

Solar Equity 5. 1705 1795 ...... — 

Solar Fxd. fnL S 1155 1216 +al — 

Solar CashS 1020 109.2 ...... — 

Solar InU S 852 905 -15 — 

Solar Managed P 127 4 134.2 -0) — 

Solar Property P. — IU5 117.4 — 

Solar EwityP 1699 1781 +0) — 

Solar F«0. lot P U5.0 121) +02 — 

Sola; Cash P 102.4 1081 .... — 

SotarlnU P |K) 90.4| -L$ — 

Sun ABfance Fund MangmL Ltd. 

Sun Alliance House, Horsham. 040364141 — (Q48J 15991 j — . 

Int. Bn. Dec. 19 J 02.04 1 ] — 

Sun AUance Uitked Lite Ins. Ltd. 

Sun Alliance House, Horsham. 0403 64141 

Equity Furd 11270 ■ 234JI — 

Fixed Merest Fd 1055 UljJ eX4 — 

Property Fund U6 4 1288 — 

fmemetionji Fd.. .. 95 9 981+02 — 

S®5fc::.:^s ^|+o3 = 

Sun Ufe of Canada (UK) Ltd. 

2. 3, 4 Coctepur St.. SW1Y 5BH 01-930 5400 

Maple Lf.Grth. 1 2059 1 — 

Maple U. Maagd J 1315 .... J — 

Maple Lf. Egty... I 1317 ..:..] — 

Perurt, Pn-Fd J 209.8 J — 

Target Life Assurance Co. Ltd. 

Target House, Gatehouse Road, Aylesbury. 

Bucks. Aylettxirj 10296) 5941 

Man. Fund Inc. 197.9 . 103. IJ — 

Man. Fund Acc 12X1 1272 — 

Pro*. Fd. Ine — 1287 124.1 — 

Prop. Fd Acc. 1530 — 

Prop. Fd. Inv 117.0 — — 

Fixed InL Ft Inc. __. 10X1 106.4 ..... — 

Dtp Fa Inc.. —.97.5 1024 — 

Ref. Plan Ac. Pen 73.4 79.7 *00 — 

Rct.PlanCa0.Pen 60.7 ,660 +05 — 

Man.Pm.Fd.Acc. 1281 134J :.... — 

Uan.Pen.Fd.Cap. — USA. * 1ZL1 — 

Gilt Pm.FiLAcc.._ 134 0 341) — 

Gilt Pen. Fd. Cap 124.7 13X3 — 

Prop. Period. Acc. 164.7 173.4 — 

Prop.PenFd.Cap.__162.7 *17X3 — 

GuSr.Pen.FtLAtt ?j7 102.8 — 

Guar.Pen.Fd.Cap- 967 3ff8 — 

D-A.Prn.Fd.Acc 97.4 1K5 — 

DJLPen.Fd.Cap 96.6 1017 _... — 

I. UOispur 51.. 5Wir 5BM 

eLf.GrthL 1 2059 

r Lf. Maagd. . - 1355 

r Lf. Eoty I 1317 

I, PilFo J 209.8 

Z R Silk Prop. Bd 166 9 I .. ..i — 

••- j Z DO. EnirtySd 762 +1M - 

I Flee Money Bd. . — 249.6 . . Z] — . 

— Transinternatiaul Ufe Ins. Co. Lid. 

090228511 Imperial Ufe Ass. Co. of Canada 

Property Growth Assur. Co* Ltd.? 

Lena House, Croydon CR9ZLU. 01-680 0606 

Oirttws. Managed. 


Magra Managed 

City of West min s ter Assur.. Co.. Ltd. 

Inverial House, GuUihord. 

GrLFd.Dec.15_. 175.4 82.0 

Peas.Fd.Dec.16 — »9.7 _ 757 

Unh Lmfcrd PwiftSo 
Managed Fund ... — 194.8 . 99.8 

Fired InL F6 195.9 100.9 

SeaerCap. Fd. (984 103.5 

Equity Fund [99.7 104 9 

Irish Life Assurance Co. Ltd. 

H=l = 


mnwtexd Home, 
Croydon C TO ZJX 
West Prop. Fundi 

P OLA Food 






6 WhRetxvw Rout, 

— 11, Flrahuy Square, EC2. 

1 — BhieChtoDec.l4__|757 

.Sr.fl Tta J4_ 
pfsjjhqcj Fond.... 

■ L «. . 

01-6849664 p^Mri.GUi. 

J — Prp.Ud.Grth5er.ll 

Ic'd Z Kin* & ShaxsM Ltd.' 

..__J — 52. CornMIj, EC3. 

Lean House. Croydon CR9ILU. 

__ Properly Fund — . ... 19!) 

Property Fund *A». _. 1892 

— Agrfcufturai Fund — 81L4 

— Aartc. Fund IA» 803.9 

Atbr? Njl Fund 159.4 

— Abbey Nat. Fd. 'Ai — 3?) 

— Iraetteieot Furx) . — .. M2 

— Inveitmenf Fd. IA> — 681 

M^E^iT- 1 «? g2 4 

01-628 3253 MooeyFund 


in- = 

II - = 

2 Bream Bldgs.. EC4 INV. 03-4056497 

?Tnlip Invest. Fd 11477 155.0J — 

WTulip tonp d^Fd H6J) 122) — 

StaPen. Fd. CapZ iB7 BQ2 !.Z — 

Man. Pen. Fd. Acc __ 02.9 339.1 — 

9Mngd.lw.Fd.loL.. W.9 104.0 — 

?Mngd. Im. Fd.Acc..]99.9 1B)J — 

Trident Ufe Assurance Co. Ltd.? 

Rtnslade House, Gloucester. 045236541 





Target Tst. Myra. (Scotland) (a) (h) 

19. Alhol Crescent. Edrr. 3. 031-2298621^ 

Target Ar^r.EagirlZS^ 24 9M -051 l.TO 

Target Tbuiie <0.9 * 44^+03 600 

E«lrj Income Fd (60.2 64.71+0^ 9.92 

Trades Union-)] nit TsL Managers? 

100. Wood Street. EJX2. 01-628 8011 

TUUTDetl _1507 535| 5J4 

Transatlantic and Gen. Secs. Co.? 

91-99 New London Rd Chelmsford 3245 51653 

Barbican Dec. 1* ,754 SOU 5.90 

lAceum. Unui f 1170 12*0 S.W 

Bam Nov. 29.. JjSi sTSS | 09 

BucMim. Dec 14 ]79 9 83)rf „... 556 

•Accnm. Uoiisi _ '1006 1046 536 

Coirxo Dec. 15 t27.7 1345 ._.. fK 

lAceunw Umtsl... [157.6 1654 .. . 606 

Comtil Dec 13 SZ) 545 .... 7.67 

(Accitm. UiUts.1 K83 6X1 _ .. 7.67 

GienOec. 19 525 Sfcfl -L3 530 

tAccuni. UnltM. 6&4 72? -1.7 

MammmDrc 19.... 503 529-14 3*7 

lAccum. UrW* > 57.9 60.71-23 3.87 

Van.Gwtn.Dec.19. 491 5X71-11 3 74 

(Actum. Units) 610 64JS -2.4 3.74 

Van H» Dec 19 71.8 TSU -15 906 

Vang Tee0es.l3_ 453 47 rt . ... '5.94 

f ACML Uurts.1 47.4 49* 5 94 

Wicker Ore. 14 623 65 * 534 

(Atoms. Urns' 769 79)1 5)4 

WKkDn.On.15— 671 73 6} 852 

Da. Acorn. 78.8 84jq 852 

Tyndall MMaten.Ltd.? 

18, Canynge Road. BrrstoL 
Income Dec. 5. 

(Accum. Units). 

Capdal D«. 13 
lAcoan. IMu’. 

Exempt. Dec. 13 
(Actum. UnUs/- 
lUL Ear Dec. 13 
<Aco>n Unttsi 
lAcopn. Umtsl 
24, Cattle St, Edtamgh. 0312251168 

Scm-Irm Deo 13. _SBD 17661 ... J 932 

Scot Cap Dec 13. .[3*0 9' 14&M .....I 558 

(Acaon. Units] _.|l704 179.5 1 558 

Londsa WiD Craop 027232241 

Capital Gro»:(i__ 81 4 87.M +1^ 654 

Ce. Accam 85) 91X *1.4 654 

Ertra In. Growth... 369 41 J *0.7 19J9 

Do. At cure. 471 - 506 *02 1039 

Financial Pr'rry. 163 17 4 *03 4.93 

Do Acorn- 202 2X6+03 4 93 

High Inc. Priority 59.6 617 +Xt 922 

Imeraational — . 26 4 28.7 -02 3.27 

Special S.U 34 4 368] +05j 5)1 

TSB Unit Trusts (y) 

21. Caamry Wav. Andover. Hants. 026462188 

Dealings to 0264 63432-3 

CbiTSB General 45) 4S.4] -0^ 4)0 

lb: Da Accum 582 623 -D*( 4)0 

(P* TSB Income 59 6 &35U -021 7 70 

<bi Do. Accum.. ... 640 6B) -o3 7.70 

. T5B Scstxfi 825 87f -53 2)8 

Ibi Do. Acemn. 893 95.Q -0^ 2)8 

Ulster Bank? (a) 

Warwg Street, Belfast. ' 023235231 

(SlUfcler Growth 137.4 403 . —I 5.78 


I .._. I an 

Alexander Fund 

Jl, me rtetre-Bavie. Urtteaiq - • 

Alexander Fund ... . | SUSA 99 ] 1 — 

Net aim vakir Dec. 12. 

Alien Harvey & Ross Inv. Mgt-(C.I) 

1. Ch»rt*oCrt>«- Sc N*W+. C.L 0534-73741 

AHRGiHEdgFd... J£1020 10231 .. ..|. 12.00 

Arbuthnot Securities (C.l.) Limited 

P.O. Box 284. 5t hrlier. Jersey. 0534 72177 
CapLTB.Uerwyl _J115 119| -X0| 4.W 

Next dura dale January 9 

Gov’t Secs Tsi 1190 id?) ,.|1200 

hen deakng due Deccntier 27. 

EastUml Tit.fClr _]96 1 03) . ...J 3.64 

Nrxi dealing date Decrndier 28. 

AustraBM Selection Fund NV 

Market Oppanunitlrs. c-'a Irlsn Young & Oothwaiie, 

127, Kent Si v Sydney 

USSlSham | SUS1 *8 I J — 

Net aurt nkr No*enWrr 24. 

Bank of America International SA 
35 Boulevard Royal, Luxcmtwjrg G O. 

WkBnvnt Income ...piSUXS 116101 . -.1 7J2 
Prices at Dec. l4. Next ub. tn Dec 20. 
2463) 046.4 49.9 *0.9 8 BO 

Baoque Bruxelles Lambert 

2. Rue Dc la Regence B 1000 Bnncels 

Renta Fund LF 1X891 1.94* -7| 800 

Barclays Unicom InL (Ch. Is.) Ltd 
1, Charts* Cress, Sl He her, Jsy. 0534 73741 

Overseas income U70 4941 J 1220 

Ifoldeltor Trust BfiOlOfl 115U ....J X7p 

UnAwed Trust KUSUJ42 102 sS-OB* 850 

10624: 4856 


87.01+1)5 654 

4x3 +oil lH5 

, jyy. f.'i-u 

4941 J XL20 


Barclays Unicom InL (l.tAin) 

1, Thomas Sl, Douglas. l o M. 0b24 4856 

UnicomAuu. ExL .. . 49.4 5321... 1.70 

Do. Aim. Mm 30.9 33)3-0 8 180 

Do. Grtr. Pacific 67 8 73fl — 

Do. Inti. Income 37.1 39* 8 80 

Do. I of Mao Tk ._ . 464 44* .... SSD 

Do. Manx Mutual 25.7 27.7] 140 

BHIiopsgate Commodity Ser. Ltd. 

P.D. Box 421 Douglas. |.o.M. 0624-23911 

ARM AC "Dec. 4 IWS93I 31241 1 — 

CANRHD** Dec. 4 fS!a98 Llfcfl - 

COUNT— Dec. 4.._|C2 627 2.7St( ..J X88 

Ongntlk nsued it *510 and — tlOO 

BrWfe Management Ltd. 

P.O. Box 508, Grand Carman, Cayman Is. 
N’toshl Dec) ,_| Y17.858 ] | - 

215« 0.77 

Britannia TsL MngmL, (Cl) Ltd. 

Keyser Ullmann Ltd. 

25. Milk Street. EC2V 8JE. 01-606 7070 

Forsmev IF,1 37t 1 5111 ..._| 300- 

Bacdseiex IF-1IT40 XO«J-UBl — 

Cent. Assets 2ac ... ]Q34 12 139 IJj+OJC] — 

King & Shaxson Mgrs. 

1 ChvirJ Crali. Sl Heiier, >i)(T. 10534* 73741 

VjiievKw v p,^- Ptn.Gnri (0481)24706 
1 Thomas Street Douglas I O.M. (0624: 4ffi6 - 
Gilt Fund l.'ersn ■. .Tf+05 906] .....J 

GiH Trust (1.0 M ■ 1102 1 104 H +0-21 12® 

GIN Fhd. Guermey|9)4 9 17a« — \ XLS 
Inti. EnL Sacs. TsL 

Firs: Sterling 107 54 1> SW-05S — 

First inll IS190 47 I90.77|-]MI — 

Kleinwort Benson Limited 

20. Fencturtft SL. EC 3. 01-6238000 * 

Eiiimnl. Lu«. F. X113 —21 3 14 , 

GuerfMV Inc 63.5 67 4*1 ...... 4 27 

Do Accum . . . _. 79.7 84.4 *27 

>:B Far Easl Fo ... . SU S3 2.62 138 

KBlntl Fund- . _ ibSll 72 ...„ L% 
KB Japan Fund . .. SuS39)Z +407 0.64 

K BJJS. Gwth. Fd. . SUSJ214 0.78 

Signet brrmirda SU5J.45 X81 

Intemt) Bd. Fd $L<S100)8 .._J — 

Lloyds Bk. (C.l.) U/T Mgrs. 

FO Soi 195. 51 Heliiar. Jersey. 053427561. 
Lloyds Tu.O'seas - 155 1 5801 ,.l 0.97 

Men dealing caie January 15. 

Lloyds Trust Gilt . _| U0L0O | ......] 12J» 

Nen Dealing Date December 27. 

Ltoyds Bank International, Geneva 
PO Eov 438 1211 Grneie 11 (SwitmrUnd) 

Lloyds In*. Growth ..ISrllOflO 331301 1 1.70 

UoydS Int. Income - .£KS750 2985« ] 5.40 

Management International Ltd. 

Bank ol Bermuda Building. Bermuda 
Canterbury Dec. 15 _]SUS3)2 I — -l — 

M & G Group 

Thrre Quavs. Tower HmEC3R6BQ. 01-626458B - 

AilantC Dec. 1" J'JSZ.78 3Q5J-00* — 

auslEs. Dec. l? lusxa an — 

Gid. Ex-Acc Dec. 13SUS926 10 42 ...J 

Island.... 129.8 1396 -QH 93.® 

lAcmm Units 1 187.0 ZOLU -L3 f3.93 

IbSll 72 
Su 539)2 


_ Samuel Montagu Ldn. Agents 

402} . .._| 5.78 

Series A (IruiI) p34 ] . ...J — 

Series BlPacffic) K908 ' -02* — 

Series 0 (AklAss) — tL1520 ■ | .. J — 

First VHdng Commodity Trusts 

1012. St Geerw'iSL, Dosgiai, Jo.M Do24 25015 

FsLVlk.Cm.Tfl 05.2 371] .... I 3.00 

Fn. Vk.Dbf.Op.Tst — pB.D 58.01 .. ..J — 

Fleming Japan Fond SJL 
37, rue Notre-Dame. Luxendmurg 

Fleming Dec. 12 1 5US63J1 | J — 

Free World Fund Ud. 

BuuerilcW Bta, Hamilton, Bcnta 

NAV Nov. 30 1 susitua |—4 - 

G.T. Management Ud. 

Park Hse.. 16 Finsbury Circus. London EC2 
Tel: 01-6*8 8131. Tlit: 886100 
London Aaeitu for; 

Anchor 'BMJiiK [HJS101 1.04] 208 

Anchor GUI Edge t9J9 9.43-003 13 44 

Anchor lot Fd RIS4.93 5.0fl 20S 


Berry PacSnffl 31Z55 3265U .. .. 0 92 

G.T. Alia Fd SHQ8J7 Ifl.tfB L89 

G.T.AliaSierflng — Q4J5 14.97 247 

G.T. AuflraJla F£ __ SUS978 1021 . . - 

*. 0M x« 

G.T. Dir. (Strip.) F« £806 924 - 

G.T.PadflcFd SIS679 — +010 092 

G.T. PhfflppineFd — [SlS979 10.4O| .....J — 
Gartmore Invest. Ud. Ldn. Agts. 

2, SL Mary Axe. London, EC3. 01-283 3531 



N. American Tsi. 
IntL Bond Fund . 

East) Ltd- UXh) 

_ P.0. Bin 32. Douglas, Ml. 062423911 

I Gartmore Inti. Inc 1212 22.Q I 1120 

Gartmore Intf. Gitl4Sl2 61* ... .| 2.60 

Kambro Pacific Fund Mgmt. Ltd. 

2110, Connaught Centre, Hong Koxg 

Far East Dec. 13 BKKH57 15J5| — 

Japan Fund &JS9& 103i| — 

Harabros Bank (Guernsey) Ltd7 
Hanbres Fd. Mgrs. (C.l.) Ltd. 

P.O. Box 86, Guernsey. 0481-26521 

C.l. Fund -jlfLB 15S5M . J 3.70 

Intnf Bond IU91M.47 11209+027 8.50 

InL Eoilty .. 5USU0.99 1X30-030 2.10 

Im. Sip. 'A' 5US/X07 Dffl+ftD] — 

lit Sms. '8* SuaX12 1)3-003 — 

Pifc on Dec 2D. Wert deali*Dee. 27. 
Henderson Baring Fund Mgrs. Ud. 

605, Gammon House, Hong Kong. 

— Japan Fd. Dec. 13 ISUS22.45 2363 ] — 

= :::\i z 

*Eadusiie of any preUm. charges. 
HBl-Samuel & Ce. (Guernsey) Ltd. 

8 LeFebvre SL. SL Peter Port. Guernsey. C I. 

Guernsey Til 1149.7 1600*1 | 3.70 

HHI Samuil lavcL MgmL Intnl. 

P 0. Bax 63, Jersey. 0534 27381 

HS Channel Is. F. |12X2 129.B . .1 332 

Bm 2622. Bern, Swluerim* Trte. 334B 

H0. Overseas? lam* 18.6M-0.1M — 

C.S.F. Fd-fto.). — tpl5.98 lGa . J - 

Crtwdww Fd. (Acc.1 ..ISF3.72 3 7* 1 — 

ITT Fd. (Acc.) I5U5807 81* | — 

Intemattanal Pacific Inv. MgmL Ud. 

P.0. Box RZ37, 56, Pitt Sl, Sydney, Auu. 

Javefln Equity TsL_JSA2J3 2.45| | — 

J.E.T. Managers (Jersey) Ud. 

P O. Box 98, Channel House, Jersey. 0534 73*73 

Jersey ExwnL Tst D58.0 16S0| . . | — 

As B Not 30. Neat sub. day Ok. jl. 
Jatdfne Fleming & Co. Ltd. 

464ft Floor. Connaught Centra, Hong Kang 
Jandne Esin. To.- — I HKS29641 I .... I 2. J0 
Jartf ne J"pn Fd." f H>CS40090 ....I O*) 

ESUss-- =:B8! 


Bend Fd. Exempt 110140 1B2-71I 1 — 

Next dealing date January 3. 

Lang ham Ufe Assurance C«. Ltd. 

Langham Hie, HoliUnoS Dr, NW4 01-2035211 

Harvest Plan M) • 103^ I - E2E' 1 

Langham ‘A’ Plan 1664 69i» .1 — “P- 

?Prop, Bond h?7) 154 * .... J — “*■ 

WhptSP) Man Fd [765 80^ — .J — Prov 

Legal A General (Uidt Assur.) Ud. 

City of Westminster Assur. Soc. Ltd. 

Telephone 01-684 9664 

Actuarial Fima 115.9 — _ 

GUf -edged Fund- — 1250 -ft 

Gtlt-Eoged Fd. tA) ._ -Slfl ..... -0 

S Reilra Aimdiy 138 9 — 

Imroed. Ann*ry — _ lg5 — 

international Fd _ 1000 — 

Prop. Growth Pereiras A tal fe Ltd. 

All Wther Ac. Uls. 1304 1373 — 

f All Weather Cao 120.8 127.1 — 

?lnv. Fd. Uts. — J405 ... — 

Pension Fd. Uts 135.0 — 

Conv, Pens. Fd 153.7 .._. — 

Cm. Pm. Cap. UL 1364 — 

Man. Pens. Fd ... .... — 

Uin. Pem. Cao. UL 3330 — 

Prop. Pem. Fd 153,0 _ ... — 

■ Prep. Pens. C». Uts 136.6 ... . 136, 

Bdgg. Soc Pew Ul 237 1 — 

BMgTSoc. Cap. Ul — 3S.7 — 

Providence Capitol Lite Ass. Co. Ltd. 
30 U .bridge Road, W12 SPG, 01-74991; 

StS:a:&CdU. W=?| = 

lOngswood House, Hnmwood, Tadworth> Surrey set.' Mkt. Fd. Sw. 10)0 

KT20 bEU. Btngh Heath 53456 ftmion 13X3 

CaihHihiaf 196.4 10X51 _,.J — • Pension Frdlnt By 

Courmerdal Union Group 
SL Helen's. 3, Undentsfl, EC3. 
Vr. An. Ac. Dec. 36- 1 58.84 
DaJtanURyUts 1 Sl.% 

_ — , . .'ndm— 

Property Pension 

CnmMII Inmnnce Ca. Ud. 

MiLGtbTNmL 23 ZZ&725 1£ 

Cash Initial 96.4 10L5 ..... — 

i Da Accum. *7 105S +0 1 ~ 

1 1 “* Equity Initial 1250 13Xj>| -0.9 — 

• — I “* Do. Aeon 1793 1362} — 0 4 - — 

Fixed InWal 04.4 1223-0.4 - 

Da Accum. _______ 1314 1266 -0 4 — 

IntL Initial 90.4 -04 — 

01-2837500 Do. Acowu .____«) ,970 -0.4 — 

I .—] - tanagedlnfclal 1189 - lS) -0.6 — 

1 \ — Do. Amrni. — 53.0 12?-| -0 b — 

1 ■* Property hritlai 1W.4 105.7 +DI - 

Do. Accum 103.6 109 3] +0.3 — 

Co. UgW A General (UnS tadamf Ud. 

01 -2420262 Exempt Cash Inh. — 988 104 0] ...... — 

I _ Do. Accum 101.7 107JJ — 

-- z m- z 

Exempt Mngd. Jnh. J95 136* — 

_ Exempt Prop. H*. _ »8 JgjH — — 

_ Do. Accum -110X7 107)] —Z — 

Legal A General Prop. Fd. Mgrs. Ltd. 

Deposit Fd. Cap 47.4 

Deposit Fd. Ate. 47.4 

Equity Fd. Cap 46) 

Equity Fd. Acc (46.3 

Fxd. InL Cap. - 

ffl= = 

Contederatloa.Llte Insuraoca Co. UgW A SeneriiTunft Pern 

SO, Chancery lane/WC2A 1HE. D1-Z4202B2 Exempt Cash Inh 988 

— ' = ESSEifEli 

- 48J — 

FxdTfnL Cap.Z ---{47 1 50 4 Zl! — 

Fid. InL Acc 47 8 50 4 — 

Intnl. Cap 45 5 46C — 

Intnl. Act. _ 4B D .... — 

Managed Fd.Cap._- 46.8 49) . — — . 

Managed Fd. Act — «.S 49) ._... — 

Properly Fd. Cap «.4 52) — 

Property Fd. Acc {49.4 52)] -...] — 

Provincial Life Assurance Co. Ltd. 

222 Bithopsgate. ECU. 01-247 6533 

.Prnv. Manned Fd — 1119.1 1253 ,._.J — 

Pro.. CashFd 107 I 112.B — 

Gilt Fund—. U60 1222 +0J — 

Property Fund 10X4 10b) ... — 

EouiwFund — 1020 107.4 -0 7 — 

Fxd. led. Fund ■ 9b^ 101.71 — 

Prudential Pensions Limited^ 

Halborn Bara. EC1N 2NH. 01-405 9222 

UJC Equity Fund U19 U8i +0j — 

HMh Yield 3420 150) _ 

Girt Edged jZLO 129.1 — 

lownuUDMl 10B.6 . 1066 -OJ — 

Fiscal 290 1366 — 

Growth Cap 127.7 135) ...... — 

Growth Act 133) 340.1 — 

Pros Mngd Cap.._._ 115 0 12Xt ._.. — 

Pens. M(Hd. Act 1216 128fl — 

Peas. GtdDep. Cap.— 104 7 110.1 — 

PenS.Gtd.Oep.ACC 13D.7 U73 — 

Pens- Ppty, Cap 117) 124) — 

Pens. Pty. Act 123.9 13X2 — 

Trdt. Bond 369 _ , 38.1 — 

-TrdL C.l. Bond- 97.0 — OJp — 

•Cash vata far £100 prendux. 

Tyndall Assurance/Pensioos? 

lfl Canynge Road, Erred. 0Z72 3220 

3-Why Det 14 1284 „_J — 

Euuhy Det 14 166.6 — 

Bond Det 14 16X9 — 

Property Det 14. 315) — 

OetxKIt Dec . 14 SQ — 

3-Way Pn. Det 14_ 154.0 . — — 

O' seas Inv. Det 14 77) — 

Mn Pn3-W Dec. 3 177.6 ._... — 

Do. Equity Det 1 ... . 278.6 — 

Do, Bond Det. 1 179.8 -- 

Do. Prop. Dec. 3 90.4 — 

Vanbrugh Lite Assurance 

41-43 Maddox SL, Ldn. W1R9LA. 01-4994923 

Managed Fd 11498 157-71-0.* — 

Eoulty Fd C4X2 253.9 

Intnf. Fund, [WO 99.0 

Fixed intent Fd 1167.2 1760 

Property Fd JEl.9 159.9 

CasnFund I1Z2.0 1285 

VMbwh Pensions Limited 
41-43 UadMx St, LdtWlR9LA 
Managed (1010 1064 

Flxrf Intertat 988 IM) 

Property —jlOXO 1064 

M z 


-P.* - 

Credit ft Csramerce Insurance 

. 11. Quetnyictortfl SL, EC4 N 4TP. 01-248 9678 ln|]B . fHil I “ 

81-6265410 L&5PrpJd.Drc.6+4W^ — 1 P^FdOn. 1B_.. Jta.oS 28, Z!] - 

z J “z| — Ufe Assur. Co. ef Ptnnsyhnmb 1159222271 

3824—1 - . 39-42, New Bqpd St, W17 ORQ, 01-4938395 ^ 2219 r ^ 

I . . LJeyiJs Bt. unit Trt. mngrs. Ltd. Sl Switlnra Lane, London LC4. 01-6264356 

120, Regent SL, London W1R5F8 00-4397081 71, Lombard Sl, EC3. 01-623 12B8 S r Prao. ...-11386 128* J — 

C*CMng|LF4- - __{13.0 1330J — | — . tongfl ,.-—1983 U33.4] ___] 7JO. ^'Ntxt 'Suh- iUy Decease, 

Managed 11010 106* -0.* — 

Equity 0067 llf? -22 — 

FI vm Interest 988 3§tll -O — 

Property —jlOXO 106* +02} — 

Guaranteed see ‘bis. Base Rates’ table. 
Welfare Insurance Ce. Ud.? 

Wlnslade Park, Exeter. 0392-52155 

Manernaktr Fd I 1055 J . . | — 

Fir Other turati, please rater to The London £ 
Mudwier Graiqi. 

Windsor Life Assur. Co. Ltd. 

Royal Albert Hse., Sheet Sl Windsor 68144 

LHe Inv. Plans 172.2 760) +2.* — 

FimreAssd.GifKa)__ 17.0 | -2 J& — 

Future Assd Gth(b) j 4400 -ZJ — 

RfLAsaf.Pew ranti 1-002 — 

Fie*. Inv.GrowttJ O0CL2 105^-13* — 

etei 33425 
186M-0.10J — 

«i* I - 

jarotnernr fp.-...._ 

Jar (fine S.EJl 

JanSne Flem Int 

Do, fAccum.) 

NAV Nov. 30 'Esutvalmt SUS8 
Next wh day December 29. 

114. Old Broad Sl. E C 2 
AoBlIsFd.Dei 13... SF43 6 

Japfra Dec. 15. HOT b 

1 27 Group Dec 13 .. WSIPJ 
HTJtrse, Ntw.29... £5.09 
JSyO's Kov. 30 £946 

01-588 6464 


111 2.46 - 


.... XOO 

:::: HS 

.... 1250 

4.6* J 1L42 

9 iOj _...J 1X46 

30, Bath SL.SL Heller, Jersy. 0534 73114 

Sterihra Deoandflafed Fds. 

Growth Hwesi [37 0 40* 2.00 

lldid. Fd 80) 86 H XOO 

Jrraey Energy Tst. ... U7.7 127.?] 1.50 

UMvslSTsLStg 12.09 2$A x5o 

High hd-SUg.Ti __.p^3 0 96u| ..... 1250 

US. 0 alter awrad r ate d Fds. 

Unml. S Tjl MJ5527 5551 ..... — 

M. High Int Tst {SUS0.95 0.98d| | 9.18 

Vake Ok. 15. Next dealing Dec. 27. 

Brown Shipley Tst. Co. (Jersey) Ltd. 

P.O. Su 583. St. Heller. Jersey, 0534 74777 

SttaBod Fd.di) K10 05 100* | 1X90 

Butterfield Management Co. Ud. - 
P 0. Box 195, Hamilton, Bermuda 

Buttress Equity |*US23! ?3* | 1.7J 

Buttress Income |5US2il 20* ... I 501 

Prices at Dec. X Next ud) day Jan. B 
For Capdirex SA see under Keyser Ullman 

Capital International SJL 
37 roe Notre- name, Luxentoourj 

Cagltel Int. Fund.....) 5US17.6S | | — 

For Central Assets Mngt. Ud tee under 
Keyser UHnwi Ud. 
Charterhduse Japhet 
1 Paternoster Row. EC4 01-248 3999 

AArapa (OUT? 90 31 501-0 IOJ 4 86 

AdWeiba- UW4J0 52 lffl 4.45 

Fondak BlCLffl 3300) . _. 503 

Foods jOUTO 70 218fi-02I 532 

Emperor Fund S3J5 ))d .... - 

Hlspawo |SUSC3? 4437| 2.74 

Cited Investments (Jersey) Ltd. 

P.O. Bu 320, Sl Heiier, Jersey 0534 37361 

Clive Gilt Fd.fC.l i ...19.62 4.6* ] 1X42 

Clive Gilt Fd. (Jsy. 1 -j9LS9 9.6* J 1X46 

Csrnbill Ins. (Guernsey) Ltd. 

P.O. Box 157, Sl Peter Port, Guernsey 

Intnl. Man. Fd 11635 1780| J — 

DWS Deutsche Ges. F. Wertpapiersp 
Gruneburgwcg 113, 6000 Franirtut 

invest* - [DU36A 3B.80)-0)0| — . 

Delta Group 

P.O. Bex 3012, Nassau. Bahamas . • 

Dell* Inv. Dec. 6. I5USX64 X77) J — 

Deutscher Investment-Trust 

PostfaeJt 2685 Bieheigasir 6-10 6000 Frankfurt 

Concentre IDM2BM 21601 ...J — 

lid. Reotenfonds — ...|dU 68)0 70.90j+82* — 
Dreyfus Intercontinental Inv. Fd. 

P.O Box N3712. Nauai. Bahamas. 

NAV Dec. 5 RUSISM lb.M| J — 

EmsM is budiey Tst_.Mgt.Jray. Ltd. . 
P.8 Box 73, SL Heller. Jersey. 0534 20591 

E. D.I.C.T 1123. 8 1318| J 3.00 

The English Assecatlnn 

4 Fare Street. EC2 01-588 7081 

•Nem dealing ttec. ^ '*Neri dealing Dec 29. 
Eurobond Holdings N.V. 

Handeldcade 24, WHlemUad, Curacao 
LandM Aaents: Intel. 15 Chrictapher SL, EC2. 
Tri. 01-247 7243. Telex; 8fll44o£ 

NAV per share Dec. 15. SUS20.B0. 

F. & C. Mgmt. Ltd. Inv. Advisers 
1-2 Laurence Pmmtney Hill, EC4R DBA 
01-623 4680 

Cem.Fd.0ec.13 1 SUS5.43 | | — 

Fidelity MgmL A Res. (Bda.) Ltd. 

P.O. Bor 670, Haituitan. Bermuda 

RdethyAm. Au 1 SU^.76 .. ..J — 

Fidelity InL Fund — W5ZL21 . 1 - 

FideBty p«e. Fd :.[ SUS54J0 -0* — 

FMrBtyWrMFd 1 $US13J9 -025| - 

FMelty MgmL Research (Jersey) Ud.. 
Waterloo Hse_ Don Sl, Sl Heller, Jersey. 0534 

Murray, Johnstone (inv. Adviser) 

lb3. Hope Sl. Gtasgow. CZ. 041-223 5523 ■ 

-Hope Sl Fd I USS40J28 I | — 

-Murray Futa... - . VSSU08 | — J — 

NAV December 15. 

Negtt S.A. 

10a Boulevard Royal, Luxembourg 

NAV Dec. 15 | JU S12)8 ] — j — 

Negit Ltd. 

BanC ol Bernxida Bldgt., Hamlhon. Bmb. 

NAV Dec. 15 lib 10 — |*0J5| — ' 

Phoenix international 

PO Bot 77. Sl Peicr Port, Guernsey 

Inter-Dollar Fund... .JSUSTJS 2.54] 1 — 

Buest Fund Mngmnt. (Jersey) Ltd. 

PO Bo> 194. Sl. Heiier. Jersey. 0534 27441 

Richmond Ufe Ass. Ltd. 

48 Arnol Street. Doujias i.o.M. 062423914 
t»iThe Silver Trusi .1126 115 *-0.3 — 

Richmond Gd.Bd ... . 116 9 323.(8+35 — 

Do Plalmum Bd )b0 9 169* +0 4 — 

Do Diamond M 93.4 10L9 — 

Do Em Incom+Bd ln7 5 17651+15 1158 

CarnllonC G.I 50 . 95 0 1000] — 

Rothschild Asset Management (C.l.) 

PO BorSfi St Julians Cl, Guernsey. 048126331 

O.C.Eq.Fi.Nov. 30 .... 56 5 60. U 2.92 

0 C.Jnc Fd. Dec. 1. ... 152 1 161.8rf 75B 

0 C . inii.Fd.T 5159 1 37m 1.2B 

OCSfflCoNov. 30 140.8 1493 358 

0 C. Commodity* ...... 1438 153 ffl . ... 421 

O. C.Dtr Comdtyr.. ..S27 69 2955].... 0.68 

•Prices on Drc. 4. Next dealing Dec. ^9. 
IPricrs on Dec. 7. Next dealing Dec. 2X 

Rothschild Asset Mgt. (Bermuda) 

P. O. Bot t>64, Bk. of Bermuda Bid.. Bermuda 
Reserve Assets Fd]SUS977 9791 ....J — 

Price on Dec. ll. Next deahog Dec. 19. 

Royal Trust (C.K) Fd. Mgt. Ltd. 

P 0. Box 194. Royal Tu. Hse_ Jerscr. 0534 27441 

R.T. liRT.Fd IS0S92I 9JMJ I 3.00 

R.T.lm1.iJty.»Fd...TO.O B90J I 321 

Prices at Dec. 12. Nen dealing Dee. 19. 

Save & Prosper International 

Deahng ur. 

37. Broad Sl. Sl Heller. Jersey. 0534 2Q591 
US. DoHar-denomitnted Fundi 

Dir. Fxd InL—t 18 «1 9.45M I 751 

ImematGr.'f {758 BJM-O.ia — 

Far Eastem-f _M7 65 * — 

North Amencant 13.77 _f0H-0^ — 

SeproL _.._B 

SterenwUiaomlroted Fi 

Channel Cacilar* {2 

Channel Islandst 

SLf *P rrte? on Det. IT. “Dec. 12. ***0rc.l4. 
tweeirty Dealings. JDaHy Dealings. 

ScMesinger International Mngt. Ltd. 

«1. La Mode St. St. Heller, Jersey. 0534 73588 

SAJ I f7< 791 -II 9)8 

SA.0L _...W.87 0.921 -0.11 4.89 

Gin Fd LU.7 2X*... j 1256 

Inti. Fd Jersey 94 . 100{ -0.1] 3.6* 

Wated** mi zw 

■Next sib. da; December 13. 

Schroder Life Group 

Emeronse House. Pcrts mouth- 0705 27733 

International Funds „ ^ 

£ Equity .: 1063 11301 J — 

5Eqidty__.._ . 133 4 Ml* ..... j — 

tFlxedlmerwl 1392 . 14a« J — 

SFIaed lifleresi 107 S 114.ej — 

(Managed — 123.5 131 3 I — 

SMaruged 120.6 1282| | — 

J. Henry Schroder Ways & Co. Ltd. 

120. Cheaper dr. EC. 2. 01-588 4000 

Cheap SOec. 18. 01,05, |-0J* 290 

Trafalgar Nov 30 ... Suy23 16 ... — _ 

Aslan Fo Dec. 11 SUU90O 1953] | 2.K 

Darling Fd. Dec 18.... SA1 93 2 03 550 

Japan Fd. Dec. 14 3US8 O «.0* . .. . J 0.44 

Sentry Assurance International Ud. 

P 0. Box 326. Hamilton 5. Bermuda 
Managed Fund JSVSIMD 2.15631 | — 

Singer & Fried lander Ldn. Agents. 

20. Cannon SL. EC4. 01-248 9646 

pekafgnds |WIQ(37,„ 27.801 J 652 

Tokyo TsL Nov. 21._.| SUS40.00 | — ] 155 

Stronghold Management Limited 

P.O. Box 315. 5L Heiier. Jersey. 0534-71460 

Cdrnmodily Trust 186.99 91571 4 — 

Surtnvest (Jersey) Ud. (a) 

Queens Hse- Don Rd . SL Heiier. Jsv. 0534 27349 
American ind.Tsi IF 6.79 6. W -0.17] — 

Copper Trust {aL72 I2.m-O0fl — 

Jap. inoea Tsl (CLO.67 1059) +0051 — 

TSB Unit Trust Managers (C.I.) Ltd. 

Bagatelle Rd., SL Sariour, Jersey. 0534 73*94 

Jersey Fuiri I4B.2 50.7] -0.* 4.73 

Guernsey Fund _ .__J4IL2 50 7] -0.9J_ 4.73 

Prices oa Dec. 20. Next sab day Dec. 27. 

TSB Gilt Fund Managers (C.l.) Ltd. 

BagaeVe Rtf. St Saimir. Jersey. 0534 73494 

Gill Fund [94.0 101 Of -1A 12)0 

Gilt Fund (Jsv.) 1990 lOL* -20(12)0 

Prices hi Dec. 20 Kexi gte. day Dec. 27. 

Tokyo Pacific Holdings N.V. 

Intlnus Management Co. N.V. Curacao. 

NAV prr share Dec. 3X SUS64.84. 

Tokyo Pacific HMgs. (Seaboard) N.V./ 
inlrails Management Co. N.V. Curacao. 

NAV per share Dec. IX SUS47.25. ’ 

Tyndall Group 

P.O. Box 1256 HamlJloii 5, Bermuda, 2-2760 

O'seasDec. 13 |SUS!)7 1.2* | 600 

(Accum. Units) SUSLM Xg J — 

3-Way InL Nov. ltx...|SUS2.69 XB] 1 - 

2 New 5L, SL HeSer, Jersey 
TDFSL Dec. 34 |L7A0 

I Accum. Shares I . 

American Dec. 14 
(Accum shams) 

Far East Dec. 14 870 

(Accum. shares 1 870 „ .-o-x — _ 

lersey Fd. Dec. 13 __ 3)4.2 21t5fl . — 727. 

-Non-J.Acz.Uls I 55)6 . 320.H — 

Gill Fund Dec. 13 — 103.4 105 ** 1X39 

(Accum. Shares) 14X2 1440] — • 

Victory Hew. Bengta bit of Max 0624 24111 
Managed Nm/16..ZP34.8 1420] J — 

Un3Kc Assurance (Overseas) Ltd. 

P.O. Box 1368. HamllioR 5-31, Bernuda 

Intend. Mngd. Fd_.._|SU6fl.96 — ] J — \ 

Union-Investment-Geiellschaft mbH 
PostMUi 16767. D 6000 Frankfurt 16. 

AUanlutfonds 10.85 1X50 -0)01 — 

Europafcxids 24.95 26)0] -0J« — 

Unifondj 17.60 1850 i - 

Ururenta 3855 39.601 J — , 

Unbpeciall 09.10 6250|-X00| — t ’ 

Utd. Intnl. Mngmnt (C.l.) Ud. 

14, Mulcaner 5 tree i, Sl Heiier, Jersey 

U.i.B.Funf CWS1MC 105531 i 7.80' 

United States Tst. Inti. Adv. Co. 

14 Rue Aldringer, Luxembourg. 

U.S. Tsl Inv. Fnd {510)1 “.J-021| 177 

Net assets DecenAer 18. 

S. G. Warburg & Co. Ltd. 

30. Gresham Street. EC2. 01-6004555 • 

Cnv. InL Dec 18 ( SUS944 -0031 — . 

Eng. IM Dec. 18 .... } SUSI7 32 -0J2{ — , . 

Gr.SLSFd.Nov.30. SUS750 ..Zl — V,' 

Merc. Ebd. Det. I3._pua(L42 1053 (0.1687 ; , 

■ UertMyMlrtDet.18._U10.2Q 1021 | — _ 

Warburg Invest. MngL Jrsy. Ltd. 

X Charing Cross. SL Heher. Jsy.Cl 0534 73741 . -V 

CMF Lid. Nov. 30 . llUSUJb ' 13 90] — 

CM7 Lid. No>: 30 ._..]£13.67 14.02) — 

Metals Tst Nov. lb... 02.73 13 0*... — 

7MT Dec 18 USS1079 10.6M — gf-i 

TMT Ltd. Det. 18 .. ..JlIO 28 105* — 

World Wide Growth Management? fe .'l 
10a. Boulevard Rovai. Luvembourg 
Worldwide Gth Fe| 5U514.73 (-0P3) — 

0.92 -0.1 4.89 
1X58 -003 — _ 


son . ...j zoo 


m = • 

Prices Os not irxJude $ premium, except where imAcaird v. and are in pence unless otherwise nx&caled 

Itert Hse., Sheet SL, Windsor 68144 Vie HD 96 (Shown hi Ian cohiim allow lor all buying expenses, a Offered prices Indude Ml expense* 

Plans 1720 7601 +2.* — b Today’s prices, c Yield based on offer price d Esumatrd. < Today’s opening price, h Distribution free 

isiLGihU) { 17.0 -201 — of UK axes. P Periodic premium insurance plans s Single prrmhim insurance x Offered price includes ih 

ad Gthtb) I 44 00 _ZJ expenses tveept agent's commission, y Offered pure includes all expenses if bought through managers. 

f. Pens | r»in 1-002 — i Pravtau dap price. ? Net of lai on reahseo capital gains unless indicated b> * 4 Guernsey gross. 

.Growth flDQ-2 1055( -X* — f Suspended. ♦ Yield before Jersey tax. r £»-sundi»isiBn. S Only available in clurliaoie bones. 


Amsterdam: P 0. Bo* 129b. Amsterdam-C. 

Telex 12171 Tel: 240 55S 
Birmnaham George House. George Hoad. 

Tele* 358650 Tel: 021-454 0922 
Bonn: Presshaus 11/104 Heussallee 2-10. 

Tele. 8869542 Tel: 210039 ■ 

Brussel;.' 39 Rue Ducat*. 

Tele. 23283 Tel 512-9037 
Ca<ro: P 0 Be. 2040. 

Tel 438510 

Dublin: f> FiUwilltam S ware. 

Tele. 5J14 Tel: 735321 
Erfirtaxgn - 3? George Sire»t. 

Tele*: 72484 Tel: 031-226 4120 
Frankfurt: Ftmlcnallee 71-61 bOOD 

Frankfurt am 1 

Tele. 416052 Tel: 7598 234 
Johanrfiburg - P.0. Bo* 2128 
Te'e. 8-6257 Tel: 538-7545 
Lisbon pracn oe Aleqna 56- ID. Lisbon 2. 

Tele. 1333 Tel: 3*>Z 506 
MaOHo: E^pronreOa 32, Madrid 3. 
fe(: 441 b?72 


Birmingham: George House, George Road. Manchester: Queen's House. Queen Street 

Tele* 333850 Tel: 021-454 0922 . . " Tele* 666813 Tel: 061-834 9381 

Edinburgh; 37 George Street. % New York. 75 Rockefeller- Plaza, N.Y. 10019 

Tele.: 72484 Tel: 031-226 4139 . S Telex 238409 Tel: <212) 4g9 8300 

Frankfurt: Frankenallee 68-72 6000 ■ ; Pans: 3b Rue du Serttfer, 75002. 

. FrankSprt am Main 1. - Tele* 220044 Tel: 236.86.01 

Telex 4J6193 Tel: 7598 221 ' ' ■ Tok^o: Kasahara Biufding, 1 - 6-10 UcWkanda, 

Leeds: Permanent House, The Hezdrow. Ch&oOi-kD. Telex J 27104 Tel: 295 4050 

Tel: 0532 454969 

Overseas advertisement representatives in 
Central and South America. Africa, the Middle East,. Asia and the Far East. 

For further details, please contact: 

Overseas Advertisement Department, 

Financial Times, Bracken House, 10, Cannon Street, London EC4P 4BY 

Copies obtainable from newsagents and bookstalls worldwide or on regular subscription from 
Smscrtption Department, Financial Times, London 




■' \a-r. ^*1/ < •"/ ■' . ... -. ■'. 

V *1 , ■ - 1 . i?... C^. L -^V'- -= " ■ 

' • si' .jlnancial. Times 'Wednesday December 20 1978 

/ | JNDUSTRlALS-Contitmed . INSURANCE— Continued 

lz aPM: '**■ -I *»t4 «.W8I* i M I ». i_i z id: 


* « Br» 1 Ykf 

I’m - Net |Db fr's|p/E 

1271 -Ba- 
al tl651 _ 66 - 

MS . TB 2S — a.5 - 

13B -2 t8.M _ 80 _ 

MS *2 tb.75 — 69 _ 

•138 . .. 822 — 89 — 

X7 +* «b.7 - 7.0 — 

41fl* .... 1974 SJ 3513.2 
-1 4 52 * 7.1 A 

+* «046 — 6.1 Z. 

- . 3.48 - 5.1 — 

+22 dlDfe — 06 — 

-2 — 76 — 

-“b KLbfi — 38 — 

2.4 6J10J 

Lead JodTSOp 

\ J ' 

84 W 
761? 4 «Xj 
1M& 40 
U9 -83. 
222 160 
136 82 

-144 83 

41 32 

65 55 

135 108 
41 30 

222 IPi 
30 17*. 

157 106 
116 69 

U 5 
-163- 79 

52 33 

53 60*? 
7612 64is 
185 115 

74 52 
614 45 

75 52 

33 23% 

62 44^ 


| 84 .. .. 

73ri +U 

95 +1 


107 +1 

J?" :::: 

m :::..: 

27k +1 



isT :::::: 

& :::::: 





% ± 

31 7.5 64 
35 6.3 5.7 
66 35 5.6 
1.9 7.0 116 
46 4.8 65 
9.2 2.7 4.2 

28 9 2 63 
P2.7 88 6.3 

25 65 9.3 
li 111 76 
U 10.1 a 9 
3-4 7.1123 
3.8 3.4 7.7 
4 10.0 4 

is flits 

38 23169 
15 11.1 71 
53 3.7 ao 
27.4 125 - 
2.5 5.9103 
6 j8 53 4.7 

29 7.9 6.6 

U | U 

h 17 h 


- V : - Motors and Cycles 

30 20 ra.L50p__— . 22 ‘ _ _ 

Z72 185 ffiea.Wts. Units IK ...j: Q27jc L7 7.5 63 

53 37 jLc*usCarlOp— 48 .. . _ - — 162 

1 Z*? 5*> jfafitat httr. 5p. 9% ~h — — — 178 

iSjfj S&lHote-fajceMtn. ,93% +* 2 M524 24 R4 98 

Q5 J762 pitthoKrta-Jl UUj +>3 UQl»i 28| 68 | 65 

Commercial Vehicles 

343 fi9%(EJLF.<Wdps.). 132 2.46 13JJ Z 8 J 28 

; 69 49 FflfltMBQpW. 56 335 6.2 8.9 (2.0) 

12*2 7 RtakUwefls. W * — — — — 

118 57% Hattons. 117 4.75 * 62 6 

73 45 - YoritToflerlOp. SO |fd2J7 68 4.2 

• “-Components 


High Lnr 

M2 527 
351? 22 
272 211 
2251- 84 
397 280 
44 25 

50 32» a 

126 111 
43 34 

250 190 
U« £145 
£163 L12S 
*160 £125 
5H* 37 
275 172 

ISO 77 
BO 55 
138 104 
159 105 
23*s 16 

43 14 

SO 28 
300 145 
48 31*2 

90 53 

137 103 
46 44 

92 6B 
347 280 
’123 61 
330 280 

87 74 

78 59 

128 89 

100 72 

107 88 

424 29*j 

129 100 

£175 £140 
290 216 
288 170 

76 31*2 

77 56 
17 ll»z 

139 82 

25 18 

320 240 
163 119 
365 262 
29 13*2 

28*2 16 
46 30 

PROPERTY — Continued 

■ i Seek | Price [ + -"j it 2 |cir[firt[wE 


Stack [ Price | + -"j £s IcvjllrijpE 

1.11 5- q |22.8 
3 12 

FINANCE, LAND— Continued 

]Hnmmenon ‘A* 623 
fUnlKinlIl*:*. 35*2 
riflemen* lOo. 260 
HKUrei HK55 110 
Irnry Property .. 388 
*"»er«ropMr lOp 42*? 






Marlborough 5p I 23 
Marfer Estates. I 35 

28 I 

10 a 


Regional Prop .. | 80 











+2*; 0 67 
... 73 35 
+Jj KQ43: 
. . 13) 
-1*? to x 



-1 dl 0 


! 05V- 

-2 " 



-2 0.82 


.. .. 2.5 
-1 3 83 

2 I 03 


17 131672 

3.2 2.8 run 

23 19260 
13 42115 

18 0 8 96.9 

11 53 257 
22 3.4 195 
11 3 6 36 2 
15 3.3 282 
63 08 - 

6.3 I4J) — 
63 (66 — - 
OJ 2.9 1674 

19 3.B 87 
3.9 08 33 5 

ts 2.9 2^3 
13 3 9 28.0 
5.0 2.2 9.9 
— — 443 
2 010.2 4.9 
53 Q.S338 

Stack I Prie 

88 Brit. lnd. & Gen 96 

140 Bnt Invest 159 

122 8raadoirv(?0p) 140 
79 Brunner Inv. — 91 

56 C.LRP.I"> — 63 

Caledon* In*'-. 244 

Do. -B" - 

CaaeKUtms lOp 
Can. 6 Foreign. 
Capital i Nat. 
nal Did 

7134 6.9 2.2 98 

148 2.3 3.0 U9 

.... 203 2.5 6 7(7 0} 

-1 20 3.9 33 23.5 

H7J 12 35 39 9 

H2.5 ZJ 3.7 21.1 

584 1.7 28 347 

-1 039 0.1 17 — 
+>2 - - - - 

.! ». Lll” 29 II 243 
-2 Lll 2.9 23 220 

d2.91 27 43 (lJI) 

d23 u 39 oa 

H197 13 2.8 441 

61.75 2 8 6.5 6.2 

. — t2.30 1J 2.9 28,7 
-1 Qltrtt 13A Ib3 - 

2-03 53 1.0 261 

1 4 38 Oi 15 U0.9 

1+1 QlB*jC « 5.9 4 

-1 0.91 4 1.8 4 

0.01 — — — 

4.09 L7 4 9166 

I -*? 0.33 33 23 UO 

562 11 2 6 510 

T2.70 16 27 361 

17 06 12 3.1403 

L... 1.0 16 55 01*1 

LI 129 15 47 2*1 

Clifton Invs lOp 


83 | 62 (Hawthorn L 5ft] . 67-1 — — — J — 

360 125 Swan Hunter £1.. 151 430 4 3.(H 4 

230 035 lyosper 194 -2 t5.0 « 38^ 72 

345 {260 [Yarrow 50p 318 ..... 5.15 3.1 2.4 17.9 


F U.C.I.T.(R0 25) 

FurxSnvr-.T Inc.. 

Photo-Me 50p 



58 44 

70 55 

129 107 
91 52 

72 56 

2V* 20V* 
{24V* £14 
304 152 
90 63 

199 96 

1 56*? 37 
336 240 
•61 31% 

I A 5 

1115 78 

95 63 

iS % 

•138 108 
45% 34% 
44*2 35 
95 80 

53*2 40 
26 19 

113 64 

44. 89*2 
47% 35 
102 74 

•80 64 

54 TR 
59 44*2 
38 29 

51 21 

126 92 

-118 74*2 

f 1 

46 31 

' 84 65 

•911? 66*2 
76 4 8 

■ 87 73*2 

36*2 27% 

S'- 5 * 


48% 26 
88 43 

54% 33 
130 68 

46 42.68 381 8.71 48 

38 tW.46 43 9.B 3.0 

2 4226 3.7 53 78 

U2 524 t 7.2 * 

71 B59 85 2.9 6.0 

65 3.73 26 86 63 

26*2 L08 3.7 6 3 4.8 

£19% +% Ql40c 33 3.6 9.1 

261 +1 4.50 4.0 2614.4 

65 538 1.7 124 63 

167 +1 t2.89 K55 2610.5 
10*2 — ... — — — — 
50*2 — ’2 t*0-M 33 25 13.4 

300 ...... 9.18 4.6 4.6 5.1 

53 tl.60 4.0 4.6 155 

^*2 +31, 3.13 33 57(63) 

89 1386 50 6.6 4.6 

309 252 
200 112 
187 112 
348 206 
157 100 
41*2 31*2 
40% 25 
145 107 
255 200 
39% 12*2 
130 66 

138 103 
118 76*? 

140 58 

46 29 

115 57 

Corrm Brw. 50p 

Fisher (J).. 

Fumes WWiytl 
HiMtm 9 Gl 6 
L on. ffSeas. Frtn. 
L*te Shipping _ 
Man. linen 20p . 
Mersey Ok. Units. 
Milford Docks Q. 
Ocean Transport . 
P.60 DrdtCl- 
Rearton Sta 50p 
landman (W). 

294 -1 
173 el 


238 -2 


39 -<2 

38*2 -r 






83 +1 
77 ..._ 
34 -* 2 

1 19.40 3.4j 4 8j 93 
d652 - 5i> * 
11.55 77 12110 
18 29 4.0 5.2 6 0 
*5.17 - t — 
dl 88 7.7 7.2 2 3 

1497 ?5 34 607 
5.18 2.3 35 16.1 

- - - U 

268 - 3.3 - 

BJ7 2.6 113(3.8) 

6.64 0.9 U.9 (IS 2) 

0.1 - 02 - 

! 01 - 04 - 

I M3.75 21 9.3 35 

IS l.r.'.llifl I? li! ?* 

Garages, and Distributors 


4.42 3.01 921 5.4 

- - - M .8 

.. .. M634 2.510.8 71 

7.87 2310.9 43 

— *2 12-16 3.4 8r4 3 8 

... tl 40 43 5.8 5.4 

.... dt4J 3.1 8.3 4.6 

... 251 2.3 73 87 

11.44 2 2 9 8 6.9 

-l 16.50 2.3 9.4 7 0 

. .. d2.41 1J 10.9 flU) 

.. .tdl.73 4.6 5.4 3 9 
.3 32 58 5.4 36 

.. .. 153 2810.0 6.2 

.... 12.85 3.6 91(33] 
. 155 6.4 47 5 0 

... 127 15 5.717.4 

. ... dO 47 17.4 2.4 5 3 

L07 .... td4.18 3 8 58 68 

107 1630 57 9.5 33 

18.71 3310.4 5i 

-1 3.64 3.7 4.8 6.7 

d6 05 3.0 10.9 43 

198 4.4 7.4 31 

t471 2.6 8.8 66 

MS 3.7 8.5 4.2 

ft ±ar isiM 1? 

28 — *2 62.14 13114 9 7 
— — — 20 8 

30 16*2 

65 50 

80 56 

10B 93 

60 30 

109 64 

58 46% 

48 33 

41 18% 

118 bb*2 
32*2 » 

Allebone lOpf . 25*?qf ul.15 2 Of 6.7J (M3 

BocUi (Intn'i)-. 5i 4 46 3 4 128 34 

Footwear Inn. 70 d439 21 9.4 6.8 

GamvScothlalr. 97 14.57 41 7.0 4.6 

Headatn. Sims5p. 47 -1 H17 7? 5.4 3£ 

Hi (torn 20p 106 -1 14.97 23 7.0 9 4 

K Shoes. 85 -1 3.0 4 54 * 

Lambert Hth. 20p 48 -1 1322 2510.0 62 

Newtioid ABurtln. 56 .... 12.B4 3 0 7.8 64 

Oliver (G) 'A'.... 50 119 27 5.7 9.9 

PifUrd Grp 50 .... 1281 42 8.4 43 

Stead & Sim -A 1 44 +1 21b 1.7 7.3123 

Strang & Fisher 67 ... 4 73 1.4103103 

St,lo Shoes.... 77 1.75 3 2 3.4 142 

TumerW&E lOp 41 ..... thl.18 3.8 4.3 93 

Ward White 99 M4 02 8.1 6.1 5.1 

WearralOp 29* 2 1.45 9 7.6 6 


125 80 Aberaom ROJO 

635 410 Anglo Am. In. Rl. 
97 42 Gold Fids. P. 2>2£ 

175 95 Grtms *A‘ 50c 

125 87 Hulett's Con. Rl .. 

490 288 0KBauan50c 
102 35 Primrose lOcts. 

190 130 R»7«urtoin-A-50c 
90 56 S.A. Brews 20c_ 

680 445 Tiger Oats Rl— 
72 49 Unlsec 

92 10.16 

525 -18 Q63c 

48 +1 Q5c 
127 12 Q20t 

102 Q?8c 

345 +5 1058c 

57 +2 9051JC 
145 Q28c 

56 QUc 

530 +5 t052c 

49 QlOijc 

L4IU.0I 63 
2.4 72 5.7 

tl 9A li 

1617.0 3.6 

19 10.0 53 

fiiiS f.i 

2.0 117 2.8 
39 5.9 43 
1212.8 6.7 

Hamfcras- .... 
Hill (Philip) ... 
Hume Hkh. "A 

R L 2.73 .71 






70. 38 
•92 I 65 

92 1 55 (Home Counties 

677? 46 
025 £92 
46 29 

83 62 

•56*2 39 
I 77 55 

68 52 
no 88 

4B 38 
27 15 

93 65 

300 46 

102 50- 

27 18 

22 12 
142 m 

69 43 

70 54*2 

% 63 

51 39 

71 60 
81 60 



21 In 

58 135 

08 '89 



4.0 7.1 

107 73 
64 83 
73 23 






27.4 ^ 

12.4 » 

* 46 27* 

i7j » ” 

fl3 « 50 

1473 5| 

293 Ul 1| 

n2 I® 

*3 34 25 


“ ,7 250 147 

4i iff BO 

i M 49 25 

rTn 49 25 

IJ 95 S* 

gj 25 13 


Kyb Lm Stock 
74!, J”:? LacKhke'.jpA- 
3b 1 11 Lcn. Eure. Grp. 
77 i 56 Lc-n. UerrhanL. 
15C ‘104 v. -.G-Har-^c 

cG 38 Mill lie Invs. 10p 
74 Martin (R P.JSp 

£22'- >8*0 Vast *4r_ t. Rlty 
71 J2 Moolna(£l)... 
M 14 M.i:.nw.l2:*. 
450 200 \x<r -i it; iOp. 
14 4!- ParamaelOp — 

-2 ;iu Pork Plate lm 
247 >7' Pearjr (S) 6 S«i 
i+l 10 Si. George IOp . 
331 84 Sett. * Merc. -A" 

£52 t-SS £ £.£4*40: Aim. 
69 51 Strain Ero-i. — 

£54 £27*a&JcF.n.HFlO0. 
£12 999 Tret-ffttlS.^.. 
23 23 Won Se*prt-20p 

58:« Wes 0 * England, 

•16># a* 2 VarfcgieenlOp. 
87 b5 YLteCauolOp. 

+ eif Di» rid! 

— *W C*i Cts|P,‘E 

Oi 0£l SOjlHJ) 

10.51 47 24 DO 

tlOM 41 1.917.1 

? 51 37 4M 94 

*074 26 1.6 368 

4 5 -J. ll.« « 

01116 — b 71 — 

rl L43~ 16 lid J 2 


6 61 

...... 0.49 

-1 3 37 


dJ.g t 

4.4 4.1 7 0 
3b 48 85 
ID 58 252 

12 5 5 23 4 

13 D 2 83 

p^i^i9ni*rna£ion oji cl* 

025*-', - b 3 — 

«43i2 16 ; * 

. ... 2.13 12 118211 

-1 154 4 5 43 63 

H0.33 — 3b 282 

1 SEC0Rl f TIES- 

MINES — Continued 


125 60 

96 66 

163 134 
954 720 

76*2 eS 
B9 42 
£62% £51 
£13% 750 
40 30 

65 S9 
SO 21 
£26*? £12% 
453 325 
413 388 
244 £6 

4S 83 
33 24 

190 126 

£W, £97 
415 284 

45 13 1 

223 178 I 
19 22*2 

mjt 7i3 
2% 1*4 

£49 £33% 
620 320 
£02 484 
69 57 : 

«4 226 
£64 £52 | 
190 ]130 
2E4 182 
161 120 
195 86 

195 86 

82 50 

tlAran Energy Q. 

aitocfc 20 p 

BnL Borneo IOp. 
EnL PetraTm. Cl 
Burmah £1 .. — . 
BdS* 2 L" 91 96 
rtCardecca Res.. 
Century IOp — 
CieFr PetroiesB. 
ttCluff Oil £1 ... 
Do. Cnv. “A"_ 
Hindi ng Petrol . 



LA£U0 -Cb'lQp- 
DilExpf.lOp..., Com. 5p 

Ranger Oil — 

Re molds Du. lr. 
Rri. Dutch R2D. 
Sceptre Res— .. 
Shell Trar*. Reg. 
Do. 7?oPf. £1. 



Do. 7pc Cnv. £1 
Do Wd W 10c 
Wnatkide A50c... 

60 . — 

I B 64 ..... 




83 +1 

£61 ' 

m* 2 









34*? -1 


£101% +% 




835 -25 
l*i ..._. 
£40% +1 
440 +20 

577 +1 
61*2 .... 
266 -2 





52 +2 

16.34 IS 65 152 
122 43 3 0 3 o 115 
5.61o K24 12.3 — 

QB*2?5 = Pise = 

t267| 3 11 6.5| 5.9 

oi4id r« m m 

102 8.6 17 8.4 

64.65 3.0 &1 6.1 
mO.l D3 0 4 1SS 

Q14£ JT m — 

2.14 3 Oj L4J315 

®37i f - 24 65 68 

tD 94 4 1 Tl Ts 
A 9% 1102 11.9 — 

04%-i Z f9"> T 
1134 53 15140 
— - — 62 
74.245 7.b — 

QD%c - 13 - 


224 A*rican Lakes... 270 - 6357 19.0 201 2.! 

345 Assam TralB O 345M 7.5 30.6 3 2 3.: 

bO Ausl Agric. 50c UO +1 Q3.5c 11 2.0 461 

% 4W). 151 -3 11*419 45 4.1 5.) 

45 SfSvu&r (Toil 5ft) 70 62 d> 14.0 * 

25*' Roustead (IOp) 62 152 3.1 37 9' 

G3*i Finlay (James). 87 -1 u5.D 3 0 8 3 4J 

95 G:i: & Dulfus Dl ll K4.S6 28 4.8 91 

£49 Gl Nthn.flO... £64 012% 24 1.9 22.: 

325 H ri'j'ns Cros.£l. 487*2 .... WHO? 22 7.4 9.< 

66 HrllwnglS.i... 68 4.32 16 4.4 8.' 

295 Iruiicape £1 ...:. 298 -2 15.23 22 7.b 7? 

51 Jacis Wm 21 .... Z10 63 — 3' 

9 Jamaica Sug». 11 — — — — 

55 Lmriio 62*? -1*2 6.65 23 15.9 (31 

33U Mitchell Cans. 39d 3 46 « 13.2 * 

207 Uiarion Elec £1 207 -3 1340 0 8 9 7 (£( 

207 Uigerian elec £1 207 
68 Ocean Wfcm. 2ft* 77n) 
165 Pauw Zotn. lup 175 
160 Do.'A-N/VlOp ID 
27 Sanqer (J.E ) IOp . 36uJ 

2.92 3.1 

80 69 

8.0 6.9 

♦0.03 — 
B— - 
iflJO 2.4 
t63 44 


H*n |M 

U 9 
140 64 

131 63 

820 150 
336 148 
27 9*2 

75 45 

6B IS 
15B 81 

40 10 

223 125 
22 10 
40 10 

7 1*? 

143 79 

ltd? 8*2 
50 if 
17B U5 
42 ID 
70 30 

£D*? 725 
40r 12 
570 310 
300 50 

164 84 

100 35 

30 23 

420 240 
60 45 

305 190 
11 0i j 
350 22ft 
320 130 
93 70 

21 7 

84 63 

640 450 
470 280 
7B 40 

245 140 
340 230 
240 134 
B5 55 
103 84 

m 74 
270 14B 


Stack 1 Free I*-"! Mt 

+4 TQ8c 1.4 
+2 — — 

+8 tdllT 22 

+6 " — -T 
+2 - -I 

+2 f 13.55 20 
+19 — — 

Q9c 17 

M l 08: 13 


Aral. Nigeria 

Ayer HlLim SMI. 

Beralt Tm 

Berjunlai SMI.—. 

Geevor — . 

Gold 6 Eaie 12*?p.. 
Gopeng Cans. . .. . 


Idris IOp — 

Jantar 12Up 

KarramtingSMO 50. 

Kil lingual I . 

Malay Dredging SMI 


Penokalen IOp .... 


Saint Plran - 

South Crofly IOp . 
ScnCh Klnu SMO 50 . 
Sthn Malayan SMI 
Sungei Be*J SMI . 
SuprewCorp $U1 

Taniong 15p 

TongVah Hrfr. $M] 
TronohSMl. ..._ 

+1 012c 19 

- 3 " -T 

+50 — — 

+10 015c T 

+5 OsT 07 
-5 — — 


.... 0500c 
+1 4.0 

+5 QllOc 


.. ._ 125 
+3 il20 

+l" 1012% 


+5 Q175c 
+1 — 


+5 Q120c 


. .. 14.19 
-5 50145c 

-5 am 

+10 m065c 
+5 ZQlOc 



.... 1fl88c 


104 | 54 [Messina RO. 50 — | 56 [ [ 

♦*2 benaiugarsup on o— — 

44 iSime Darby lOp 92 |Q30 24 

175 Steel Bros 190 tb-5 44 

■JO Torer Reim.20p. 52 t3D 2.7 

£87 Do.8pcCnv. t 81 £91 08% 110 

41 U City Merc. IOp 48 0 84 7.1 

41 Do.10pcLn.18p 48 010*1130 6 


arymin I 54 [+2 — i —[ — 

urma Mines 17*?p I 12 1 — I— I — 

om. Murrh 10c.) 170 I +Q3flc j 2.6) t 


6B 35 Barymin 54 +2 

17 9 Burma Mines 17*?p 12 

3M 170 Com. Murrh 10c. 170 ... . 

465 245 NorthgateCSl — 350 +5 

263 164 R.T.Z 226 -3 

90 30 Sabina litfs.CSl. 42 +2 

02 687 Tara E»pin. SI 700 .... 

1B5 120 Yukon Cons. C$1 . 170 .... 

226 -3 95 2 . » 63 
42+2 - - ) - 

Q7c t 2.9l 2.0 

5.9)14 4 

1978 j 
Kgh Low 

104 75 

127 65 

17 ll*? 
65 31 

305 165 
57 26 

52 23% 

12*4 B*, 
<00 211 
129 65 

135 56i 2 

89 41> 2 

55U 29 
397 69 

83 36 

63 Mi? 
B1 55 , 
127 103 
93 37 

265 175 
585 255 
123 90 

30*? 20*j 
330 325 
245 180 
420 330 

9 % 

183 130 

1+ or Die. I nd 
Wet - Net lC'w 6r's 

Anglo- Indones’n .. 
Bertam Cons. IOp 
Bird (Africa) ....... 

Bradwatl IOp 

Casllefleld IOp.... 
Chersonese ll»- 
Cons. Plants IOp.. 
Grand Central IOp. 

Guthne £. 1 ..., 

HvnsocMy. Ea. IDp 
Highlands M50c.. 
Kuala Kepong MSI. 
ttKullrn M50c— 
Ldn. Sumatra IOp 
Malakoff MSI.,... 
Muar River IOp... 
PladanonHIdgi. lap- 

Rightwise IOp 

Sungei KrlanlOp. 

92 «... 




230al -5 
46 -1 

37 -1 

JZ'z V 
323 +3 


103 -1 
65 -2 
44*. — *2 


61 -1 





2.79 J 4.71 4.5 
3.55 27) 5.1 

♦ftL52 1.9 27 


India and Ban 

Assam DooarsEl. 
Assam Frontier £1.. 
Assam lnvs.n .... 
Empire Plants lDp.. 
Lawrie Plants £3 . 
McLeod Russel £1- 
Moran £1 
Warren Plants..,.. 
WiKiarnson £1_. . 


253 *9.65 

255 -5 1015 

97 7.11 

. 24*2 *(2.01 

335 bl5 

223 +3 US 

350 15.0 

26 4*1-75 

112 +i h7.44 
156 _.... 125 

Sri Lanka 

230 [123 [Lunina £1 [ 227 | |53B [ 1.5| 3.7 

L5c i 11.9 

Evered. .. 
Fite Forge 

FhiLrY Pkg-Sp — I 21 
GrnlgShip £ 1 . — J 140 
HKMbsBrrw 1 74 

21 Clorjialkm ... 99 

140 +5 Concreie Prods. .. . 130 

74 Heitor (HUgs.)— . 47 

Hali(Joi)^5p._. J 252 | » Ins. Carp [ Z6S [ 

I.O.M.SUiTn 192 Irish Rop« I 105 

NThn GokfjiUUi 72 
Pearce (C.H.).„. 19B 
Peel Mins — 22 

Jacob — 50 

T.I1G 190 

Umdare 80 

117 | 70 


210 [140 Falcon Rh.50c 

24 13 Rhod'n Cwp. 162 m . 

88 52 RoairCons. M— 

41 29 Wankle Col. Rh.l 

17*? 10 Zam.Cpr.SBM.24.. 

140 Q60c 

« 057 

76 — 

29 C9c 

1^2 - 


Lmton quMMioiH lor setetted South African gold mining shares in U S. 
currency erdudmg the Invenment dollar premium. These prices are 
available only to non-UK residents. 

Sll% +% Q170c Xtfl7^ 
960c +40 1078c 1.7 9.4 


SI 9% +1 0315c » lag 
511E» +% QlSOc * 14.9 
SUl. +l 4 Q190c A 20.9 
465c +20 1027c 23 55 
518% +% QllSc 33 7 2 
S31% +1*4 0385c 1.7 14.0 
S221? +% 0415c 6 233 
S10* 2 +% Q823c 2.4 93 


Unfcu otherwiw mdiuted, prices and net dvWends are In pence 
and denoorinaUam are 25p. Esthmtert price/eanwrjl ratios and 
covers are based on latest annual reports and accounts and, where 
possible. updated on luff-yearfy figures. P/Es are catadated on 
the basis of net dfebamtton: bracketed figures indicate 10 per 
tent, or more difference il calculated an -nil" distribution. Cavers 
are based on “wurUnum" distributm*. YlcMs are based M middle 
prices, are gross, adjusted to ACT of 33 per cent- and allow for 
•z’ue of declared dhtributnnt and rights. Securities with 
denominations other than sterling Me quoted Inclusive pi tba 
investment dollar prendum. 

A Sterling denominated securities which include lmmtw cat iMw 

• -Tap" Stock. 

• Highs and Lows marked thus have been adjusted to altar Bor risftts 
issues for cash. 

t Interim since Increased or reswned. 
t Interim since- reduced, passed or deferred, 

J* Tas-free to non-residents on application, 
g- Figures or report awaited. 

IT Unlisted security. 

• Price at lime ot suspension. 

9 imitated dividend aker pending scrip and/or rights Issue: com 
relates to previous dividends or forecasts. 

• Merger bid or reorganisation Jr* progress. 

6 Hoi comparable. 

• Same Interim: reduced final and or reduced earnfngs IntScaML' 
j Forecast dividend; raver on earnings updated by latest interim 


I Cover allows for conversion of shares not now ranking tar dMamds 
or ranking only for restricted dividend, 
ft Cover does not allow iqr shares wtnch may also rank for dividend at 
a future due. No P E rauo usually provided. 

V Erduding a final diridemi declaration. 

•? Personal cnee. m . 

It No par value. 

a Tax free b Figures based on pro -pectus or other official 
estimate. C Cents, d Dividend rate paid or payable on part of 
capital; rarer based on dividend on lull capital e RedenyUion yield. 
1 Flat yield. 5 Assumed dividend and yield, h Assumed dividend and 
yield after scrip issue, j Payment from capital sources. It Kenya, 
m Interim f+jfier man previous total, n Rights issue pending, 
q Earnings based on preluranary figures s Dividend and yield exclude 
j special payment, t I reheated dividend: cover relates to previous 
dividend, P.E ratio based on latest annual earnings, u Forecast 
iSvidend- cover based on prevuus year's earnings- v Tat Iree up to 
30t> in the £_ w Yield allows lor currency clause, y Dividend and yield 
based on merger terms, a Dividend and yield include a special payment; 
Cover does not Mb»y to special payment. A Net dividend and yield. B 
Preference dividend passed or deferred. C Canadian. E Issue price. F 
Dtvoend and yield Based on prospectus or other official estimates for 
1979-80. G Assumed dividend and yield after pending scrip and/or 
rights issue. H Dividend and yield oasrd on prospectus or otlwr official 
estimates for 1970-79. K Figures based on prasoectus or other 
official estimates for 197B. M Dividend and yield based on prospectus 
or otter official estimates for 1970. N Dividend and yield based tut 
prospectus or oti*r official estimates lor 1979. P Figrets based oa 
prospectus or other official estimates for 1978-79. O Gross. T Figures 
assumed. 2 Dividend total to date. $4 Yield based on assumption 
Treasury Bill Rare stags unchanged until maturity of stock. 

Abbreviations: xd e* dividend; n ex scrip issue; a ex rights; tan aft;* 
e* capital distribution. 

u Recent Issues” and ” Rights” Page 28 

This service is available to every Company dealt in on Stock 
Exchanges throughout the United Kingdom for a fee at £400 
per an mini for each security 


The foli wring is a selection of London quotations of shares previomlp 
listed only in regional markets. Prices of Irish Issues, most of which are 
not officially listed m London, are as quoted on the Irish exchMMe. 

AJtuny Inv.ZOp— . 26 V;~i g I 

Ash Spinning 67 Sbefi. Relrsbml-J 67 j. — 

Beriae, . IS Slndall (Wm.) — -] 118 [ 

0dgVtr.Est.SOp.. 323 ... 

Clover Craft. ...... ,23 IRISH 

Craig 3 Rose CL— . 61501 * 

Dyson(R. A.) A ... 35 .... Core. 9^* ■50:82.. | £90 I...... 

EHisC McHdy.» .. 66 .... AlfianceGas. _..[ 99 [ 

Evered 23 Arooti 1 350id| 

Fife Forge . 52 Ct mill (P J.| [ 95 +3 

The new 

I (ent-Axia 

ventilation unit 
for the home 
-look for the name. 

Wednesday December; 20 1978 



Anglo-U.S. nuclear venture 


ROIiS-ROYCE, the heavy 
electrical plant group Northern 
Engineering Industries and the 
U.S. company Combustion 
Engineering" hare launched aa 
Anglo-American joint venture to 
compete in ' the international 
nuclear energy market with a 
U.S.-designed reactor. 

The new venture will build 
reactors under a Combustion 
Engineering licence, to a design 
which has been very successful 
in the U.S. Rolls-Royce will be 
seeking to repeat the success 
it has had. through its sub- 
sidiary, Rolls-Royce and 
Associates, in building 16 sub- 
marine reactors and 30 fuel 
cores for the Royal Navy 
under a Westingbouse licence. 

Sir Kenneth Keith, Rolls- 
Royce chairman, is chairman of 
the new nuclear venture, RNC 
(Nuclear), in which the three 
partners have equal share- 

In a letter to Mr. Anthony 
Wedgwood Benn, Secretary for 
Energy - , tost month. Sir 
Kenneth outlined several argu- 

ments in support of his belief 
that the UK electricity supply 
industry — which is evaluating 
four designs of pressurised 
water reactor — should- choose 
the Combustion Engineering 
reactor and the new venture 
behind it to build a 1.3QQMW 
demonstration plant in Britain. 

Among these were: - 

• The design is considered con- 
servative and reliable by U.S. 
electrical supply industry, which 
has placed 17 of its 24 orders 
for the biggest (1,300 MW) 
reactors — 71 per cent of the 
market— with the U.S. company. 

• The reactor has consistently 
been up-rated during its life- 

• It is already designed to bum 
recycled plutonium as a fuel, 
ready for when the political 
climate shifts again in favour of 
this form of fuel conservation. 
Q The UK demonstration, 
approved in principle • by the 
Government early this year, 
could be built to safety 
standards required by West 

Germany and apparently 
favoured by UK nuclear 

• No alternative scheme would 
offer the export opportunities 
for Britain in the' market for 
reactors and components.- 

Rolls-Royce,- which has 
National Enterprise Board back- 
ing for its venture, says the 
new company would welccnpe 
Government participation. 

Sir Kenneth has asked for a 
meeting with Mr. Wedgwood 
Benn at the earliest opportunity 
and. although he has received 
only an acknowledgment in 
reply, is confident of a meeting 
early in Janizary. 

The new venture can be ex- 
pected to delay any final deci- 
sion by the electricity industry 
on which pressurised water re- 
actor it would prefer to build. 
It had hoped to complete its 
assessment by Christmas and 
the favourite was the Westing- 
house design, for which the 
National Nuclear Corporation — 
with the Government's approval 
— has held a licence since 1975. 

U.S. records $3.8bn 
deficit in third quarter 


recorded a S3.8bn balance of 
payments deficit in the -three 
months to the end of Septem- 
ber. This was $7D0m more than 
the April-June deficit, and a 
figure w-hich casts doubt on 
U.S. Government forecasts of 
a drastic improvement next 

The latest OPEC oil price 
rise will add to the administra- 
tion's problems. It is likely to 
increase the U.S. oil import 

• bill by $4bn on current pro- 
: jections. On top of this, the 
- Administration is faced with the 

• news that the U-S. payments 
‘ balance now stands $13.8bn in 
j deficit for the first nine months 
: of this year. For the whole year. 
J it looks like eclipsing the 

• record deficit of $15.3bn in 1977. 

The U.S. Treasury, ant! in 
particular Mr. Michael Blumen- 
thai, the Treasury Secretary,' 
have been predicting that the 
U.S. deficit on current account 
— which includes merchandise 
trade and invisibles such as 
insurance and tourism- — would 
fall to as low as $6bn next year 
as a result of increased 
exports, a recovery in the dollar, 
slower growth in the U.S. and 
faster expansion elsewhere. 

This forecast now appears to 
have been based on a 
mistakenly optimistic reading 
of the relatively good second 
quarter balance of payments 

However. Treasury officials 
yesterday refused to be shaken 
into revising their forecasts for 
next year by one quarter's 
results. Mr. William Miller, 

chairman of the Federal 
Reserve, has maintained that 
the prospects for a much 
smaller current account short- 
fall next year are still good. 

The Commerce Department, 
which yesterday released the 
balance of payments figures, 
said the increased deficit 
between July and September 
was chiefly due to a slight rise 
in the visible trade deficit, com- 
pounded by a sharp decline in 
receipts on invisible items. 

The Department also 
announced a $5bn increase in 
foreign official holdings of U.S. 
Government Securities during 
the third quarter. This was the 
result of large dollar purchases 
by foreign governments, aimed 
at supporting the U.S. currency, 
which were then converted into 
Government Securities. 

Dr. Sadiqi expected to head 
Government under Shah 



TEHRAN— Moves to set up a 
new civilian government in Iran 
appear to be. coming to a head. 

An announcement is believed 
to be Imminent naming Dr. 
Gfaolam Hussein Sadiqi, a 
veteran politician of the era of 
Dr. Mossadegh, the nationalist 
Prime Minister of the 1950s. 
as head of a government under 
the Shah. 

Close relatives of Dr. Sadiqi 
‘ say he was asked by the Shah 
a few days ago to accept the 
Premiership, but that he has 
not yet given his answer. 

At least one other elder 
statesman is known to have de- 
clined the post, considered 
political suicide in the absence 
of a genuine transfer of power 
from the monarch. 

Speculation about this latest 
effort— replacing the six-week- 
old military-led administration — 
has been fuelled by apparent 

intensification of meetings with 
the Shah by the small clique 
of elder statesmen and by ap- 
proaches to moderate members 
of the opposition movement to 
join a Sadiqi cabinet 

Political observers here 
believe the Generals have been 
influenced in pressing for a new 
government by mounting evi- 
dence that their control over 
the troops is crumbling in the 
face of the continuing anti-Shah 

There were more demonstra- 
tions yesterday in the North 
Western city of Tabriz follow- 
ing Monday's mutiny by some 
troops confronting a religious 
procession. In the latest trouble 
helicopters fired tear gas 
grenades at several thousand 
demonstrators who refused to 

Western journalists say long 
columns of tanks made their 
way through Tabriz. The opposi- 
tion National Front claims that 

five aircraft carrying para- 
troopers were sent yesterday 
morning in a show of strength 
designed to bolster sagging 
army morale and suggest that 
the mutiny was an isolated 

• Meanwhile, it has been con- 
firmed that a new chairman of 
the National Iranian oil com- 
pany has been appointed to 
replace Mr. Houshang Ansari, 
who left the country last month 
ostensibly for medical treat- 
ment Mr. Ansari is said to 
have refused to return for fear 
of arrest in the round-up that 
has already netted Mr. Amir 
Abbas Hoveyda, the former 
Prime Minister, and a dozen 
other former Ministers. 

The new head of NIOC, one 
of the world's largest business 
concerns and a major force in 
Iran, is to be Mr. Abdullah 

Foreign oil workers low profile 
Page 2 

Brooke Bond bid loses support 


international accountants, has 
withdrawn its support for 
Brooke Bond Liebig’s £19.5m 
bid for Bushells Investments — 
Australia’s biggest tea pro- 
cessor and distributor. 

A split has developed between 
Coopers the group’s auditors, 
and the Bushells Board, which is 
continuing to recommend min- 
ority shareholders to accept 
Brooke Bond's offer of $A5.56 
a share. 

Bushells is 51 per cent owned 
by the Bushells and Oxley fami- 
lies, which have agreed to ac- 
cept the bid terms. 

Coopers and Lybrand, which 
had originally supported the 
Board, now says that, in view 

of the recent surge in Bushells* 
share price, a more reasonable 
offer would be &A6.25 a share. 

It points to Bushells’ current 
trading performance and a re- 
valuation of the group’s proper- 
ties as further reasons for a 
higher offer. 

The split between the group's 
auditors and the Bushells Board 
was revealed in an offer docu- 
ment sent to Bushells share- 
holders. In this the Board said 
that it intended to recommend 
acceptance of Brooke Bond’s 
offer— after having had long 
consultations with Coopers and 

This latest development 
follows just one month after the 
Australian Government decided 

to reverse its decision to block 
the £19 -3m takeover. 

In order to persuade the 
authorities to permit the bid 
Brooke Bond has had to agree 
to permit the Australian Mutual 
Provident Society to take an 
immediate 25 per cent stake in 
Brooke Bond’s Australian opera- 
tions— with a further commit- 
ment that the business will be 
51 per cent Australian owned 
within the next three to five 

However, the Australian 
Government decision to let the 
bid go ahead was taken in the 
fare of strong pressure from 
other local concerns which also 
wished to mount a bid for 

Continued from Page 1 

Unemployment falls 

probably due to the seasonal 
adjustment not taking sufficient 
account of recent Christmas 
working patterns. 

Employers are believed to be 
less willing to .take on workers 
before Christmas now because 
the holiday period— in which 
employees must still be paid — -• 
has been considerably extended. 

It is likely two factors have 
been at work in reducing uftem- 
ployment over the last 15 
months. Not only has the rise 
in economic activity increased 
demand for labour, but there 
seems to have been a fall in the 

numbers seeking employment 

According to the latest Bank 
of England Quarterly Bulletin, 
M employment appears to be in- 
creasing only slowly and, in the 
year to June, grew by far less 
than the expected increase in 
the labour supply.” 

This disparity has been par- 
ticularly acute among men. 
where both employment and un- 
employment have been falling. 

Part of the explanation, said 
the Bank, might be that self- 
employment has increased — 
partly because or a recent up- 
turn in the construction in- 


Total unemployment in the 
UK, including school leavers 
and not seasonally adjusted, fell 
by 27,700 to 1.36m in the last 
month— the lowest figure since 
May 1977 and to 5.7 per cent of 
the workforce. 

Total unemployment in the 
UK fell 27,600 to 1.30m, or 5.6 
per cent of the workforce. 

The Government’s joh sup- 
port and training measures 
are keeping about 187,000 
people off the employment' 
registers, a rise of 7,000 over 
the past month. 

Combustion Engineering exe- 
cutives in London stressed yes- 
terday that one of British in- 
dustry's weaknesses in trying to 
export technology to U.S. utili- 
ties was the absence of any 
strong U.S. partner. Combustion 
Engineering, as suppliers of 40 
per cent of the boilers used in 
all kinds of U.S. generating 
plant, would fulfil this role. But 
U.S. industry would also have 
the assurance of the standards 
of quality associated with Rolls- 
Royce, and its experience in 
nuclear procurement. 

The executives estimated 
that of the 24 U.S. reactor 
orders it has in hand, more than 
SlOOin .worth of auxiliary plant 
remained to be ordered for a 
dozen reactors. They implied 
that this was equipment under 
the control of Combustion 
Engineering which they would 
be willing to order front their 
UK partners provided they were 
in the design and construction 
business for this kind of 

The company has obtained no 

B S 1 Jl j 

Sir Kenneth Keith, chair- 
man of new venture. 

nuclear orders yet outside the 

Mr. Ray Whitfield, Rolls- 
Royce's director for future 
planning, said yesterday that 
the company was " determined 
to go ahead " with the new 
venture. The only discouraging 
noises so far had come from the 
National Nuclear Corporation, 
he said. • 

World reactor market Page 5 

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Standards for life 
companies approved 
by EEC Ministers 



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AN IMPORTANT step towards 
the creation of a common 
market in life assurance was 
taken yesterday when EEC 
foreign ministers approved in 
principle a directive laying 
down uniform minimum 
standards for the operations of 
life companies throughout the 

Insurance companies may set 
up operations in any member 
country in the Community 
under the Treaty of Rome. 
But they have had to comply 
with local rules which have 
differed markedly from country 
to country. 

The directive, whose intro- 
duction has been supported by 
the UK insurance companies, 
introduces common minimum 
financial rules and prohibits the 
formation of any more compo- 
site insurance companies — 
those which conduct both life 
and non-life business. Mr. 
Ronald Skerman, chairman of 
the British Insurers European 
Committee, said that these 
rules would make it possible 
for companies to extend their 
networks throughout Europe. 

The directive awaits -final 
approval by EEC ministers 
early next year, though this will 
be little more than a formality. 
A further two and a half years 
will then be needed to bring 
the provisions fully into effect. 

Solvency margins are the key 
to the industry’s performance. 
For the first time die directive 
provides a quantified definition 
of these margins. 

This has been one of the 
trickiest areas of discussion, as 
existing procedures differ 

A compromise has been 

reached, whereby solvency 
margins will be calculated on 
the basis of “ explicit ” items in 
a company’s balance sheet — 
such as its capital and free 
reserves — along . with an 
“ implicit ” element based on 
future profit estimates. 

The estimates will be arrived 
at by extrapolating from profits 
over the preceding five years 
— the method used in West 

The definition of solvency 
margins will therefore specific- 
ally exclude the implicit margins 
in actuarial reserves, the prime 
calculation used by British and 
Irish companies. 

They will continue to use the 
sophisticated actuarial calcula- 
tions that they have always 
used, but their financial status 
will no longer be estimated by 
reference to them. 

The prohibition on the forma- 
tion of new composite companies 
anywhere in the Community will 
not affect existing composite 
companies for the time being. 
Despite attempts by West Ger- 
many to have them split into 
their separate components, the 
Ministers have only agreed to 
review their performance in 10 
years time. 

Composites entering the life 
insurance field for the first time 
outside their country of origin 
wilt have to comply with strict 

If they wish to -expand they 
will have to set up a subsidiary 
with a minimum capital of 
600.000 units of account (about 
£530.000). Branches or agencies 
already in existence will be 
allowed to continue. 

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Profitability of 
industry rises 


ability of industry recovered 
sharply during the early 
autumn but is still low by past 
I standards. 

This was disclosed by pro- 
visional estimates for Gross 
Domestic ProducL in the three 
months to the end of Septem- 
ber, published yesterday by the 
Central Statistical Office. 

The figures show that total 
output, as measured by GDP, 
was probably growing at about 
4 per cent a year during the 
year to the end of September. 

But recent evidence points to 
a slight moder. irion in the rate 
of expansion from the late sum- 
mer onwards. 

The improvement in 
industry's profitability is shown 
by 15.9 per cent rise to £3.51bn. 
in companies gross trading 
profits, after allowing for the 
rise in the value of stocks of 
goods and work in progress, 
between the second and third 
quarters. This followed a 
per cent decline- in the previous 
three months. 

On a longer-term comparison, 
profits net of stock appreciation 
were about 81 per cent higher 
in the six months to September 
than in the previous half-year. 

The rise in profits in the 
third quarter should reduce 
some of the concern aroused 
by the very sharp decline 
originally reported for the 
second quarter. That decline is 
now estimated 10 have been 
only small. 

A significant part of the 
third-quarter rise may have 
been the result of the build-up 
in North Sea output and proBis. 
(Seperate estimates for the 
North Sea are not yet avails 

Moreover, in spite of the 
third-quarter recovery. the 
underlying level of industrial 
profitability was still well below 
the level ruling up to the early 

Both the Confederation of 
British Industry and the Bank 
of England have recently said 
they are seriously concerned 
about the possibility of a 
squeeze on profits margins next 
year and of a deterioration in 
the financial position of indu- 

Industry already has a large 
financial deficit after allowing 
for tax, dividends, capital spend- 
ing. and tbe increase in the 
value and volume of stocks. 

The detailed figures show 
that Gross Domestic Product in- 
creased by O.S per cent between 
the second and third quarters 
(at 1975 prices and seasonally 
adjusted), according to the 
average estimates based on 
expenditure, income and output 
data. This estimate rose by 
about 2i per cent between the 
last two half-years. 

The output measure, usually 
considered the best indicator 
of movements in the' economy 
in the short term, rose by only 
0.3 per cent between the second 
and third quarters, after an 
increase of 2 per cent in the 
previous three months. 

The main feature was a rise 
in consumer spending, partly 
offset by a fall in stockbuildihg. 
There was a small fall in the 
volume of fixed investment in 
the third quarter. Over the last 
two years this has not changed 
by very much. 

Within this total, spending by 
manufacturing companies has 
been rising since the start of 
1976 to offset a decline in public 
sector investment 


RATHER COLD in England and 

London, E., N. England. 
Midlands, N. Wales, 

S-. E. Scotland 

Dry, fog early and late, 
persisting all day in places. Max 
4C (39F). 

SJL. Cent. S. England 
A little sleet or snow. Max 
4C (39F). 

Channel Isles, S.W.‘ England, 
S. Wales 

A little rain or snow. Max 
6C (43F). 

Cent. Scotland, Highlands* i 
Scottish Islands, N. Ireland j 
Mainly dry. some sunny t 
intervals, wind S-, fresh or 
strong.. Max. 7C (45F). 

Outlook: Some freezing fog | 


- - v ; Interim Report and Dividend Ahnoirn cement. -‘XX'V 

• ' : Half Yeiw SepteoTber,.19r8^ - ,J;V- V 

. Tor 2&Yvecks endftff SOIli V. |: ^ - : j 

>•" 1977/78M:’ 

■ ' 1 ‘'April/.. £■ April/ '■ j : April A 

• •"'••••••• ■ ■ - . • -• . < . -Sept-jV 3farefc;' = 

- '• . : ^ JEpD0>v .= ±000S- - 

Nct : ' ExternaI Gro °P Salesv; :23j4l8 ^ 

Group Trading Profit * * ^£ 87 #; 

Interest Paid > v*;. ['llfr..'.-.-*' 1 ' 

Groups Profit before Taxation - .. T-flaSr-:- ' r ? - 

Taxatmn ’ y:?4SO-^ ;.:*6 & 

GrOi^ Profit after Taxation 

Notes''- •••• ' ' 

* Taxation estimated ;at 52^ fOT. v V-.£ 

. • ^fMDENZ) 

Interim already 

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.? .taatYear-Interim li^penc'eT^^ 

- v • v • "-FinRi-N 

Chairman's -Commente . ’V: 

- “ An rising to great plice 

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