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No. 27,468 

Wednesday January 25 1978 *is P 


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* * UtllOf*®* 11 ' BUSIMESS 

Nuclear Equities 

ky spy 
alls on 

and gilts 
gold up 

• CELTS lost further ground as 
buying interest remained sfight 

Soviet military satellite. The ^ Government Securities 

f “ r 

i powered by a Ho, nodeor •■“"»** faU « 
ictor. vapourised in the • EQUITIES also drifted down, 
nosphere near Yellowknife in the FT 30-Share Index closing 
nada's far North-West y ester- a t 483.4, off 3.2. Gold, and 

platinum shares advanced. . 

The satellite — a radar unit _ , . 

;d for ocean surveillance — had ® STERLING gained J- cent, tn 
en in orbit since September, $L94^0. while its trade-weighted 
d in difficulties since last index rose to 66.3 (66,2)., The 
i"th- dollar remained weak, Its trad e- 

President Carter warned Mr. weighted depredation widening 

. gr's&i ? «* w? ?s- -V“ 

."ruble by telephone at 7.30 a.m. decline overdone, . Page 3 
S. aircraft later searched the 
?a for radioactive coatamina- 

ept secret 

In the days that the satellite 
Itered. the U.S. and Canada 
cided not to tell the public of 
e possible peril. In Europe 
nLingency plans were made, 
pecially in Denmark which 
is warned by the U.S. that the 
tellite might crash there. West 
?rmany and Italy were also 

The Soviet Union yesterday 
unchcd two satellites. No. 986 
i the Cosmus series and Molniya. 

designed to relay telephone 
id telegraphic communications. 

Admitting re-entry of its satel- 

te over Canada, the Soviets ■ 

lid it was designed to 'be fully highest closing level since 
est roved before reaching earth. April 1975. 

* BC 3 • WALL STREET closed : at 

.77L5.7,_«p 0.87, as a rally on “bar- 
gain hunting faltered later in 

for kidnapped the day. 

Belgian baron yields oniTroasmy 

A Maoisi splinter srtup the London money market con 
and an extremist Right-wing, hnued to point to a possible J 
Flemish organisation claimed in per cent, fall w Minimum 
Paris to have kidnapped Bdrcm Lending .Rate to 6J per cenL on 
idotiard-Jean Em pain, a 40-year- Friday. Page 28 
dd Belgian who is one of 

'ii rope's leading industrialists. /■-< _i| ± _ „._L 

he Maoist group threatened to IU LUrU 

ill the baron unless three people 

X rt ' lea!etl fn>ra iail noon steel im ports 

The three were named as # EEC COMMISSION is being 
mgaaid Moeller and Rolf urge( j by UJK. companies to 
nhle. Baa der-Meinhof gang j^g^ten the steel import rules in 
embers who arc in West Ger- -x 

GOLD rose 75c to Jl 763 75, 

'toon deadline 

oyment up 




Adult unemployment rose slightly last month after declining since the late 
summer. But the number of job vacancies increased sharply and is now at 
the highest level since March, 1975. 

The underlying movements in 
the labour market remain con- 
fusing and there is insufficient 
evidence to indicate a dear 
trend in . either direction. 

The number of adults nut of 
work in the UJL increased by 
300 to 1.43m- in the month to 
mid-January. according to 
seasonally-adjusted figures 

announced by the Employment 
Department yesterday. This is 
equivalent to 6 per cent, of the 

The marginal risg follows an 
18.000 fall in. the previous 
three .months, though the total 
is still 90,200 higher than 13 
months ago. 

A worrying feature f-f the 


1977 wl 

of economic growth should he 
sufficient to bait the rise in 1978 
and . ensure the start of a 
sustained decline. 

But most economists believe 
that this is unlikely to happen 
until towards the end of the year 
in view of the normal time lags. 
On the conventional calculations, 
the sluggish level of output in 
the past year would indicate a 
continuing rise in unemploy- 
ment for the time being. 

The length and severity of the 
recession has undermined the 
usual relationships while the 
Government's job preservation 
and creation measures have also 
had a major impact. 

These measures, now being re- 
by Ministers, 

latest figures is that the hard reliance should not be placed on mated 1, to havo* 11 keot ^"50000 
core out of work-thosc aged the big jump in the last month. £ the re-ister in 2 

under 6D and unemployed for since there may have been an January register m mid 

over a month— has risen by exceptional post-Christmas surge The number of school-leavers 
70 000 to 132m. since “id- in the notification of vacancies. oJS ^T„ rtin to to Urt 

December. The total has. however, risen mnnth^-hv orai in fti it4 after 

The announcement of the steadily since the summer. declining since mid-July The 

small rise in the total led to The overall pattern of un- is entirely explained’by Srot- 

statements of concern from employment in the past year has . igb school-leavers of whom 
union leaders and MPs and calls been puzzling with little change near j y 7300 registered 
for a Budget stimulus to the in the to taJ last winter and unadjusted u k total in 

economy. early spring, followed by a sharp cI SL s Shool llvere rofe by' 

The most encouraging feature ^e in the summer, then a shght mon?h 

of the figures is the nse of tall in the. autumn. mid-January but there is ex- 

20.10° to 182,800, seasonally Officials y^terday merely sug- pecTed to be a rise of almost 
adjusted, in the number of noti- gested that there might recently f his si2e in the Deriod f or 
fied vacancies. This is normally have been a slowing down in the seasonal reasons 
regarded as a good advance io- previous rising trend. , 

dicator of labour market activity. Mr. Healey has said the Regional map. Page 9 

Officials warned that too much expected acceleration in the rate Parliament. Page 10 

>enn’s platform 

. ^ . order to stem the Inflow of 

an jails. . and Christian Harbu- f ore j gn stee i tubes. Back Page, 
w * ^ renc ^ stitdent j a pa 0ese Government will 

ho ik hem in Pans on a murder « j, u tde ” the country's steel in- 
large. Page - diwtry ..-towards reducing its 

exports, to. the U.S., if the Ameri- 
can, trigger price system fails to 
- ... ... . . _ do this. Back Page. World sleel 

" ralls - 'x* 5 - 

,er w Secrttary, callm^ for full- |_i_ goii flmi» page 2 
^Mded Socialist measures to «ue for consumers, rage 4 

.... insfurm British society, last ^ BRITAIN may he given an 
'i3M proclaimed what amounts ultiinanjm by the EEC Commis- 

• • a Left-wing manifesto on ^ ^ - — ^ — j 

lich Labour should fight the faiilir _ . 

. xt general election. Back Page 1 0 

enforce EEC rules 

itufley under fire 


X V. 

\U V 


_ Ci ^ 


vehicles to be fitted with tacho- 
graphs, which measure hours 

- , , and distances driven. Page 2 

,,e- Labour Left-wing savagely ““ “ 

'•packed Mr. Fred Mulley, 9 LEYL.\ND chairman’s plans 
. ; ;;fencr Secretary. _in the Com-, t decentralise management in 
_ w ius over the Governments. i^ vjan( j ca rs j s meeting with 
Iposuls to increase derence 0p n OS iti O n within the committee 
. i. . finding by 3 per cent. Page- 10. w jjj c jj up to look into the 

. » - company's structnre. Back Page 

.Ister alert 

filter security chiefs are under- •<>£ COMPANIES, nnirnr -ad 
- :> ; 6d to bo assessing the Hkeli- ^ e r ^°HSSt olan to deaWS 

l d oLn S ive nCW p^A i0 M “ S^ierTov^city The 

Lick jaif in the Irish XLK^ proposals could l^d to a 
public Eddie Gallagher mar- conflict with the EEC Comrnis- 
d Rose Dugdale. They are Mon -; * ase 9 
ving sent co ccs of 20 and nine m UNITED GLASS has promised 
irs respectively for IRA commission that it will 

cnees. - not seek another increase in 

-prices of its jars or bottles for 
nine months and has agreed to 
dee smashed a network supply- review certain aspects of its 
about 95 per cent, of the operations, including its dmcren- 
;ga1 drug LSD changing bands tial pricing structure. Page 8 
Britain, Bristol Crown Court 
ircl. The lrail lead to two fac- 

5D factories 


TRUSTEE savings hanks are 

Ablets in London and Woles. ^-^f^P^ona,^ 
riefly ing services. Page 8 

^ Swedish wife of a Yugoslav- COMPANIES 

• EXXON’S net. income fell S.7 
iC hontke^e™ we“ held f “ re E 41 S: 

ar'senpin-ion SS ™n? InSSTwing In the sharp 

ir hensin^lDi), London, flat. decIinc in thc dollar. Page 33 
ibnics were paid to Baroness • 

tticer-Clitirchiil, widow of Sir # DAVY INTERNATIONAL 
; n«on Churchill, at a West- made .pre-tax profit of £S;4m. 
nster Abbey . service in her-(£7JSm.> in the sL^ months to 
taoiy. September 30. Page 26 and Lex 




•’! prices in pence unless otherwise 
y- indicated) 


-TPvd and 8m il hers 240 

•ifton invs 10{ 

mcL Radiorision ... 108 
II ((.’has.) Bristol... 101 

tn it IC.I 93 

lernalionu! Paint... 73 

•veil iG. F.) 33 

-'Neill Group 54 

(edict* 26 

dey Printing 58 

*uls and Whites ... 127 
'Ottista Si Newcastle 71$ 
heeler's Restaurants 290' 

filer* -55 

!glo Aider. Gold -.£161 

lopsgate Plat- 90 

urban Deep ^ ,. 320 

harmony’ 407- 

ihnrss Cons £1*1 



+ 5 
■+' 3 
*»■ 10 
+ 4 
+ .S. 

+ 10 
+ 37, 
+ J-' 

Li ban on 512 + 28 

Randfontein Estates... £34 + 1 

Rustrnb.urg Plat. ... 98 + 12 

Wit Nfeel 56 + 8 


Treasury 14 pc ‘S2..JEM3} — ft 

Treasury I0}pc US ...£54J — * 

Alien (W. G.) 4S - 

Boots 219 “ 

Burton A 127 — 

Carpets lntni. • 47 — 

Cope Sportswear 75 - 

Davy IninL : 232 — 

GUS A ........... 294 - 

Hoorer A ■■■— 350 — 

JTendersrra-Kenton ..... SO. — 

. London Pavilion 515 — 

Lucas Imfa. 262 - 

McBride (R.) 3oo - 

NalWest- 230 - 

. Smurflt fJ.)' 194 - 

.Wig fall «t.)' 25S - 








e ; 



BOC faces battle for 
of Airco 

• yh 


NEW YORK. Jan. 24. 

BOC INTERNATIONAL faces a tion. and because of the danger the increase to 49 per cenL in 
battle for fui lconrtol of its U.S of BOC facing “a great many BOC’s stake were tense and 
industrial gases affiliate Airco as disgruntled Airco stockholders ' difficult because of Airco's desire 
a result of its decision to press- who could not sell, BOC had to retain its independence, 
ahead with a 3260m. cash bid decided to press ahead with an B0C had wanted a 51 per cent, 
for the Airco shares it has not offer for all Airco s shares. slal<e gjving it clear contro | # but 

acquired under a tender agree- j n November, after protracted as Sir Leslie put it to-night, it 
ment - discussions with Airco. BOC dis- settled for “49 per ceoL and the 

Airco to-night described the closed that it intended an offer right to move." 

S43*- share offer for 51 per for lJ|m. Airco shares increase LySt year B OC announced that 
ceaf of Airco s equity as “grossly its control in Airco from the had arranceri a ^40ftm linp nF 
gutter MW cWdi? fr^. major WtanS u 

Earlier Sir Leslei Smith, BOC **£ ? last ?2ar S»P m h. finance increase from 34 per 

chairman, indicated that BOC __7 i a .„*F ]a ^: ; . jea Ji t ? U 7u_ 0n T r q cent, to 49 per cent, io its Airco 

would probably press ahead with S a wl,h r i h 'il?- holding, 

nffor for- fi.ii „f *j,„ Federal Trade Commission, 

S? e thi°faJo ftf which was LT'ing to divest it of The cost of purchasing the 

tfae'SLoro f 0PP0SlCl0n f ™ the 34 per cent tt held. . 1.8m. shares is S77m. 

M r . Bvnilp . , s aggressive move to go L ast week Airco announced 

I nave no reason to expect for fuU control of Airco is in jh at j ls D et profits for 1977 had 
1 directors to be unreason- parl „ refieclion of the strong i ncre ased marginally to S55.5m.. 
able, he said, adding that he position it feels itself in. comDared with the S54m it 

was ” detennined to push ahead." Airco's stock was suspended 597“ me 1 

In a series of dramatic shifts from trading on the New York Sales revenues were ^'Dra- 
in the relationship between BOC Stock Exchange on Monday at (. Qm nared with SS37m 
and Airco, BOC first announced 832;. compareo wun wim. 

that .its S13 a diare lender offer Now half the company's share- - -- 

for IBm. of Airco’s shares had holders hare indicated that they z in New York 
been heavily oversubscribed. arc ready to sell at 843 a share. 

BOC disclosed that share- Another factor behind the BOC 
holders controlling some 6m. of inove may .have been concern 
Airco's 11.8m. shares had ten- about the future relationship 
dered to accept the offer. between the two companies. It 

Sir Leslie said to-day that in is no secret that the discussions 
view of this heavy oversubscrip- between Airco and BOC about 

Mr. van Lennep: dangers. 

Call to 
U.S. on 

By Peter Riddell. 

Economics Correspondent 

AN appeal to the U.S. Congress 
to pass an “effective set of 
energy policies.” as a “ mailer of 
vital interest not only lo the 
UB. but to the whole world 
economy." was made yesterday 
by Mr. Emile van Lennep, secre- 
tary-general of the Organisation 
for Economic Co-operation and 

More effective energy policies 
were needed to improve the 
economic prospects of indus- 
trialised countries, he told the 
Royal Institute of International 
Affairs in London on a visit 
which also included talks on the 
world economy with Mr. Denis 
Healey, Chancellor of the Ex- 

The prospects for continued 
recovery this year and next had 
improved as a result oF proposals 
for additional fiscal stimulus put 
forward in both Japan and the 
U.S.. Mr. van Lennep said. 

The OECD forecast a pat fern 
for 1978 which would largely be 
a repeal performance of 1977. 
with little progress in reducing 
inflation and growth rales in 
many countries outside the U.S. 
insufficient to stimulate invest- 
ment and prevent more unem- 

Mr. van Lennep said it would 
he wrong to under-estimate the 
dangers involved in a continued 
inadequate growth rate. 

An emergency defensive re- 
sponse to sectoral problems of 
high unemployment would lead 
to protectionism and make 
economies more prone to infla- 

This Could in turn poison j 
relations with newly emerging j 
industrial countries in the 
developing world and. by an 
adverse impact un exports of 
manufactured goods from these 
countries, it might turn whai 
have up to now been sound 
investments into bad debts. 

The lessons learned in the last 
few years were the importance! 
of bringing inflation down and 
keeping tt down, of achieving a 
sustained growth of overall 
demand and further improve- 
ment in the rate of return on 

Editorial comment. Page 16 

Bonn’s plan 
for reactors 
wins approval 


A GOVERNMENT statement— 
possibly from (he Prime 
Minister — is expected I D-day 
saying (hat Britain is to ko 
ahead will] three new nuclear 
power stations, lot ailing 4,900 
MW of electrical capacity. 

The decision was La ken 
yesterday at a meeting of ihe 
Cabinet sub-committee dealing 
with energy. 

A decision to proceed willi 
one more slalion, 1J300 MW 
station based on thc advanced 
gas-cooled reactor Tor the 
Central Electricity Generating 
Board, in addition to the five 
in operation or under construc- 
tion. was taken at tbc com- 
mittee's previous meeting 
before Christmas. 

Yesterday's meeting accepted 
ihe latest recommendations of 
Mr. Anthony Wedgwood Benn, 
Energy Secretary, which were 
to order a second 1,300 R1W gas- 
cooled slalion Tor the south oT 
Scotland Elcclricily Board, and 
lo develop and plan a third 
nuclear slalion based on the 
U.S. - designed pressurised 
water reactor Tor the generat- 
ing Board. 

Mr. Benn's latest proposals 
for the pressurised water 
reactor station apparently still 
stop short of the kind of com- 
mitment requested by the 
Central Electricity Generating 
Board — the kind which would 
permit it to issue a letter of 
intent to order. 

Nevertheless, they are said 
lo go-mneh further towards a 
commitment than he has been 
prepared to go before. 

Before Christmas. Mr. Benn 
made it plain that lie was 
implacably opposed to an order 
for pressurised ualer reactors. 

But the electricity supply 
industry has argued persua- 
sively for n firm commitment 
to one water reactor stall ml 
ns insurance against further 
problems which might prevent 
the indnslry from instalHug 
gas-cooled reactor power — 
even from a redesigned gas- 
cooled reactor — quickly 
enough lu meet its exported 
demand for nuclear electricity 
in Ihe 1990s. 

II asked ihe Gnternmenf for 
a firm romniilmcnl lo con- 
st rud. subject only lu ils 
receiilng l lie necessary plan- 
ning permission and read nr 
safety uppro\als. 

Armed willi such a commit- 
ment, the generating board 
bclieied that ii could urinate 
a nuclear licence agreement 
already signed — with the 
Government’s approval — hc- 
Iwccn Wrstinghuusc Electric 
In thc U.S. and the National 
Nuclear Corporation. 

All hough details uf this 
agreement have never been 
released, it is understood tiial. 
under Its terms, Wesiingliuuse 
would put considerable project 
management and icclmical re- 
sources behind the pressurised 
water reactor project. This 
could he a key faclor in re- 
invigorating the U.K. nuclear 

U.K. boycott threat 
in ‘green £’ row 


THE U.K. tonighi threatened to 
boycott crucial EEC fisheries 
meetings later this jnonlli after 
its request for approval of the 71 
per cent, “green pound” de- 
valuation ran into unexpectedly 
$Uxmg resistance from several of 
its Common Market partners. 
The “ green pound ” is the artifi- 
cial currency used for calculating 
Community farm prices. 

The con fron tut ion has jeopard- 
ised an unofficial me eting of 
Ministers in Berlin un Friday, at 
which it was hoped to resolve the 
dispute over common fisheries 

Mr. John Siikin. Agriculture 
Minister, told the Council of 
Ministers he would not be able 
10 go to Berlin unless West 
Germany, The Netherlands and 
Belgium, who refused to take a 
decision on the “green pound 
without consulting their Cabi- 

R RUSSELS, .Ta:.. “4 

nets, did sn by n«mn on 

Earlier, thc three countries 
had suggested that a decision 
would not he forthcoming before 

Parliament Page 10 
Editorial comment Page 16 
Wliat “ green pound ” 
devaluation means Page 25 
NFU meeting Page 31 

February 1 — the day on vvhuli 
the “green pound” devaluation 
was in have taken effect on 
several farm products. 

However, they agreed lu a 
compromise suggestion by Mr. 
Ptml Dalsager. council president 
and thc Danish Minister. Io 
advance the dale to January “P. 
The possibility of a decision in 
the next day or sn is mu ruled 
Continued on Back Page 

January S l I'nrlnub 

1 HlidlLll 
.? niMfirliv 
12 nmnili- 

! Sl.MSO.9a90 | SIMM- 9440 
0.06-O.IOprem 0-03-O.T3|*vm 
0.34-0 JBprein 0-J7-0.4 C|in-m 
0.76 0.00) irt-i 11 runt 

Water workers seek firemen deal 


WATER-SUPPLY workers wbo 30.000 water workers. Puhlie-sector workers fre- 

bave been offered pay increases Union leaders will make the quently feel, as at present, that 

within the Government’s 10 per demand to employers, though pay restraint measures fall more 

cent, guidelines have told their they know that it will be harshly on them than on private- 
negotiators to seek improve- resisted. ’ sector employees. The firemen's 

merits on the lines of the When the firemen's new pay settlement is regarded with envy 

settlement which ended the formula is folly operational in since, by relating their pay to 

firemen’s strike. November 1979 they will be industrial arnrngs as a whole. 

The move is a strong indica- taken out of the wage npgotial- this problem is overcome, 
tion that the repercussions of iQ3 arena, with annoal adjust- Local authority employers are 
the firemen’s settlement, which ments automaTiedPv keepirg already privately reconciled to 
breaks important new ground their pay levei with skilled the fact that Lord Edmund- 
by relating the pay of a group manual workers Davies's inquiry into police pay. 

of public-sector 'workers to Mr. Charles Define*. CjttfWU expected to report in the spring, 
skilled men in private industry, national Industrial officer respon- is likely to follow the example 
□ re likely to be considerable.' sible for the water industry, said of the firemens, settlement. 

Demands for a similar settle- yesterday: “ One special section TUC leaders met the Chancel- 
raent to the firemen were made of the public sector bas now got lor yesterday and told him that 

when the employers’ 10 per cent, an automatic link with earnings speeches by Ministers hacking 

offer was reported to a delegate in private industry'- ' continued wage restraint were 

conference of members of ihe “This leaves us with very real uddiog difficulties • of pay 

General and Municipal Workers' problems which need to be negotiations in the current 

Union, which has the largest examined in the context of the round, 

single ^membership among the public sector as a whole.” Labour news Page 9 


European nows 2 

American news 3 

Overseas news ..1 4 

World trade news - 5 

Home news— general ... 8 &9 

— labour 9 

- — Parliament ... 19 

Technical Page 12 

Management page 13 

Arts page 15 

Leader page 16 

U.K. Companies 26a? 

Mining 27 

Inti, Companies 32-33 

Euromarkets 32 

Wall Street 29 

Foreign Exchanges 29 

Fanning, raw materials ... 31 

U-K. stock market 34 

Sorting out valuation of 

properties 16 

Wliat devaluation of the 

green pound means 25 

European steel: Bad deal 
for the consumer 2 




Belize: Why 

necessary 3 

Real estate prospects in 

New York City 3 

France and Africa: A new 

Grand Design 4 

Synthetic paper after the oil 

crisis 30 

U.S. paper Industry's out- 
look still uncertain 32 


Vehicle fleet management 17-24 

ApMlntMonu ......... 14 

mord 14 

CttertatwiKM Guide • U 

FT-Acunrtos indices 34 

Gtntealns M 

Letters S 

Lex M 

Lambent — 

Hen imt Hatters ... 
Honey Market .... 


Sate mm 






Share Informal (un... 3LJJ 
Tennis .. ..... — i — 1* 

Wd»jF*s Orwt* ... 25 

TV and Radte 14 

Unit Trusts ». 

WoUher 38 


Geer* Gross 4-3 

< Comment Pag* 24) 

ntreniM statement 

C. R- P rinds ......... 27 

H online* 2 


KJ citron mad Welch 77 

Wolv. Dudley Brews. 24 

Bus* Loading Run 35 

CO 402 Gatcutator with mernoiy. 

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~nr.3 j 

financial Times Wednesday January 25 197S 



Fresh attempt to 
avert W. German 
docks strike 


EONN, Jan. 24. 

underway this evening to avert 
a threatened strike to-morrow by 
dock workers at most West 
German seaports. If it happens, 

• his would be the first dock 
strike here since 1973— and only 
the tilth in West German history. 

Herr Hans Peter Klose. the 
Mayor «f Hamburg, was meeting 
representatives of labour and 
employers m a last-minute effort 
10 prevent a stoppage. Severe 
economic consequences for the 
country as a whole are not 
expected — but Ihc ports fear that 
business lost to Dutch, Belgian 
and French competitors through 
German strike action might not 

Separating the two sides in 
the dispute is a gap of a little 
more than 3 per cent. ■ The 
public services union (OETVl, 
in which most dockworkers are 

• ■rgunised. has demanded a wage 
increase of 9 per cent, for this 
year. The employers to-day 
offered just under fi per cent. 

Earlier, an official mediator 
proposed a 5-3 per cent, increase 
— a suggestion which the 
employers accepted but the 
union did not. In a vote late 
Just week, almost 90 per cent, of 

the more than 16,000 dock- 
workers who are union mem- 
bers decided on a strike unless 
an " acceptable " offer was forth- 

Affected would be the eight 
ports of Hamburg, Bremen. 

Bremenhaven, Brake, Emden, 
Lubeck. Nordenham and Cux- 
haven. Not involved in the dis- 
pute so far are Kiel, Wilhelms- 
haven and Elsfieth. 

Meanwhile, brief warning 
strikes occurred in the Ruhr 
region to-day, by workers in the 
Iron and steel sector. The metal- 
workers’ union, IG Metall, said 
roughly 16,000 employees were 
involved in the stoppage but 
management described the true 
figure as much lower. 

The workers in this region are 
complaining about a manage- 
ment offer -simply to extend for 
six monlbs the old wage accord 
which expired at the end of last 
October — then to raise wages by 
3.5 per cent. 

The union has described this, 
and simitar offers made in the 
metalworking sector in other 
regions, us a provocation. The 
employers point to the steel re- 
cession and say higher wage 
settlements can only mean fewer 

Motor industry output 
topped 4m. units in 1977 


FRANKFURT. Jan. 24. 

OUTPUT BY the West German 
motor industry last year sur- 
passed -tiu. units, the Verband 
Per Auiamobilindustrie (VDA), 
the motor industry’ association, 
announced to-day. However, 
allhough business was brisk in 
the car sector, commercial 
vehicle makers had a rather thin 

VDA figures fur 1977 show 4.104.200 vehicles of all 
types were produced in the 
federal republic last year — 6 per 
cent, more than in 1976. If this 
level of growth is not as spec- 
tacular a? the 1976 steel 21.4 
per cent, expansion. It should 
be remembered that in that 
year the industry was moving 
nut of its deep recession and 
that. furthermore. manufac- 
turers were expecting 1977 to be 
a year of retrenchment rather 
than growth. .. 

Car makers reported that out- 
put in 1977 increased by 7 per 
cent, or 245.000 units. In all. 
some 3,546,900 cars and estate 
vehicles rolled off the produc- 
tion lines amt a number nf manu- 
facturers arc reporting that they 
are stilt trying to fulfill a back- 
ing nf orders placed last year. 

Commercial vehicles makers, 
however, reported declining pro- 
duction. particularly io the 
second half of the year. Alto- 
gether. some 313.700 commercial 
\ chicles were produced in the 

federal republic during 1977 — 
some 2 per cent, down on 1976’s 
321.189 units. 

The fall was in particular 
attributable to the considerable 
drop in demand far heavy goods 

The main decline came in ex- 
port markets where demand for 
West German heavy goods 
vehicles dropped appreciably. 
There was. however, a weaken- 
ing in overseas demand for light 
commercial vehicles, such as de- 
livery vans. 

The poor performance in the 
commercial vehicle field was in 
part a result of the competition 
of large one-off contracts landed 
in 1975 and 1976, notably from 
the Middle East. 

Overall. 1977’s expons of 
vehicles of all types rose by 4 
per cent, from ' 1976’s 2,043,220 
units to 2,127.500 units. Growth 
came entirely from the car and 
estate vehicle sector which saw 
foreign sales climb by 11 per 
cent, from 1 ,836,882 units to 
1.939.300 units. 

Overseas car sales, however, 
still lagged well behind 1973's 
vintage 2.1 73J27 units and. fur- 
thermore. as a result of the 
decline in commercial vehicle 
exports, the proportion of pro- 
duction, exported dropped from 
1976’s 52.8 per cent, to 52 per 

French production. Page 5 

EEC may 
give U.K. 

Andreotti’s strategy begins to emerge 


ROME, Jan. 24,' 

By Guy de Jonquieres 

BRUSSELS, Jan. 24. 


1977 SALES 

The noii-consolidated pre-tax turnover for the year 
1977 totalled Frs. 1,458,506,566, showing an increase 
5.54 ,T ,\ compared with the previous financial year. 
The development by geographical sector can be 
summarised as follows: 



1 Frs. 1 














1 ,458.506,566 




The provisional consolidated turnover for the 
financial year 1977 amounted to Frs. 1,683.9 million 
compared with Frs. 1.529.7 million for the year 1976, 
an increase of 10.08 ir 7,. 

It should be noted that this figure includes, for the 
first lime, the results of the U.S.A. subsidiary, which 
achieved a turnover of §13,024,000. 


The distribution of bonus shares, previously 
announced— one bonus share bearing effect as from 
January 1. 1977 for every ten old shares — was the 
object of the increase in capital of October 25, 1977. 
Going ex-coupon on the Paris Stock Exchange started 
on January 16, 197S, against coupon No. 6. 



f / 

'■li V 

at America’s cros s ro a ds 

• ideal sites lor distribution 
and manufacturing 

* Top labor productivity’ 

* Favorable laws 

• Prime opportunities for R cense, 
joint ventures 

•Available industrial buildings 

Ron Kraft,. Director 
Iowa Europe Burn. Dept. FT 
Am Salzhaus4 
D-6000 Frankturt/Mairi t 
Federal Republic of Germany 
Telephone: 061 1/28 38 58 
Telex: (841) 413 322 LCO D 

THE EUROPEAN Commission 
is expected to decide to-morrow 
to issue an ultimatum to 
Britain arer its continued 
failure to enforce EEC rules 
requiring that commercial 
goods vehicles be fitted with 
tachographs, the controversial 
devices which measure hours 
and distances driven. 

Before the 13-member Com- 
mission is a draft letter order- 
ing the UJv. to comply with 
the rules within two months. 
If approved, it wiU take a step 
further the legal proceedings 
opened against the UJv. last 
year and set the stage for a 
final showdown, which may 
have to be in the European 
Court of Justice in Luxem- 

The Commission has yet to 
signal formally its Intendon 
to bring the U.K. before the 
court, but it'may decide to do 
so ir its final warning is 
Ignored. Commission lawyers 
are confident that, if this were 
to happen, they would stand a 
good chance of winning their 

The UJv. was supposed to 
enforce the tachograph rule 
from the start of last year, hot 
so far it has been applied 
only to lorries carrying goods 
to other EEC countries. As 
part of a compromise reached 
in Brussels late last year, it 
also agreed that heavy lorries 
on journeys of more than 450 
kms must either be fitted with 
tachographs or have two 

Installation of the tacho- 
graph iu other vehicles has 
been strongly resisted by 
drivers' onions, who have 
called it " the spy in the cab.” 
and. on their behalf, by Mr. 
William Rodgers, the British 
Transport Secretary. He has 
argued that compliance with 
the rule would lead to demands 
for huge increases in drivers' 
hourly wages, which would im- 
pose higher costs on haulage 
operators and which could 
probably not he met within 
the existing pay code. He 
recently indicated that the 
Government planned a 
thorough review of its position 
on tachographs, expected to 
last more than a year. 

These arguments have failed 
to satisfy the Commission, 
which points out that Britain 
has been in breach of its EEC 
legal commitments for more 
than a year. The only other 
country which has not yet 
complied with the rules is 
Ireland, whose case is also 
being examined closely in 

Bnt even if Mr. Rodgers were 
suddenly to drop his opposi- 
tion. It is doubtful whether the 
Government could act In time 
to meet the expected two 
months deadline because the 
necessary enabling legislation 
has not yet been submitted to 

Meanwhile the Transport 
Commissioner, Mr. Richard 
Burke, to-day received a group 
of senior executives from 
nationalised railways In the 
EEC, including British Rail. 
The aim of the meeting was to 
explain to the executives the 
implications for the railways of 
agreements reached recently 
on lorry drivers’ hoars. 

AN OUTLINE of the strategy 
of Slg. Giulio Andreotti, the 
Prime Minister-designate, in his 
attempt to form a new Italian 
administration, is emerging 
gradually as he widens the 
range of his discussions with 
opposition forces. , ■ 

Sig. Andreotti had separate 
meetings here to-day with the 
Republicans, Liberals, Social 
Democrats and the tiny South 
Tyrol Party, following his more 
important exchanges yesterday 
with the Communists and the 
Socialists. His objective, it 
seems, Is to try -and win all- 
party backing for a one-year 
emergency economic and social 
programme in the hope that this 

can be extended in a new round 
of discussions next week into 
political support for a new 

No precise details have been 
disclosed but there are indica- 
tions that Sig. Andreotti is pro- 
mising measures which would 
raise Italy’s 1978 growth rate to 
4 per cent, or about double the 
level foreshadowed in this year’s 
outline budget introduced last 

The opposition political parties, 
notably the Communists who had 
been sustaining Indirectly Slg. 
Andreotti’s minority Christian 
Democrat (DC) Government in 
office, had rejected that provi- 
sional budget. They claimed 

that a 2 per cent growth rate 
would do little to reverse the 
industrial slump or cut unem- 

The Communists (PCI) have 
since demanded direct participa- 
tion in an emergency Govern- 
ment which, they claim, is neces- 
sary to meet the mounting 
economic crisis and the escala- 
tion of politically-inspired vio- 
lence on the streets. It was this 
ultimatum which last week 
brought about the resignation of 
the Andreotti Government 

Sig Andreotti is now said to 
be offering to doable the planned 
growth rate for the current year,' 
while at the same time undertak- 
ing to contain the overall level 

of- public expenditure, to restruc- 
ture the finances of a number of 
artfag industries, many of them 
already state-controlled, and to 
improve the enforcement of law 
and order including police 

It remains unclear, however, 
how the cost of such a pro- 
gramme is to be met. The public 
sector borrowing requirement to 
meet the 2 per cent- growth 
planned originally this year was 
estimated at nearly L30,000bo. 
(£19bn.)> This is about double the 
undertaking given by Italy to the 
International Monetary Fund last 
April in its letter of intent in 
exchange for a further drawing 
of .8530m. 

A doubling of the gro^ 
target, for which both Gohfi' 
dustria, the national employ 
organisation, and the three t 
union confederations have be 
pr e ssing, would imply' a sign, 
cant further deviation fre 
commitments to the IMF, or 
sizeable 1978 payments defit 
or both. 

It would also be directly 
conflict with the firm reco 
mendation of the Bank of If 
which has claimed that an.anm 
growth rate in excess of 3 r 
cent over the next five vea 
would be at the expense of 
unacceptably high paymei 
deficit and risk further pressi 
on the Lira. 

Extremist groups claim Empain kidnapping 


PARIS, Jan. 24. 

MORE THAN 24 hours after the 
kidnapping of the Franco- 
Belgian - industrialist Baron 
Edouard-Jean Entpain in Paris, 
French police were still without 
a concrete idea as .to the iden- 
tity or motive' of his assailants. 

This morning an anonymous 
caller to a radio station claimed 
the kidnapping had been carried 
out by an extremist Maoist 
organisation called the Armed 
Nucleus for Popular Autonomy. 
He said that unless two jailed 
members of the West German 
Baader-Meinhof gang — Irmgard 
Moeller and Rolf Pobfle — and the 
French -left-wing student, Chris- 

tian Harbulot, held here on a 
charge of political murder, were 
released by noon to-morrow, the 
baron would be executed. 

However, this evening, the 
Maodst organisation apparently 
contacted the left-wing news- 
paper Liberation with a formal 
denial of its involvement in the 
seizure of the 40-year-old baron 
who controls a financial and 
industrial empire whose annual 
sales -top Fr&22bu. 

A later claim for responsibility 
came from an extreme Flemish 
nationalist organisation calling 
itself the Joris van Severen 
Group, which accused the baron 
of harming the interests of the 

Flemish people. The baron, 
though of Belgian nationality, 
was educated and has spent vir- 
tually all bis life in Finance. 
Police, however, are inclined to 
regard the existence of such an 
organisation as largely mythical. 

They are inclined to believe 
that the kidnapping may have 
more in common with the case 
ten months ago of the seizure 
of the head of Fiat France, 
Sig. Lucchlno ReveLU-Beamont, 
for whose release after three 
months of captivity his family 
paid a Frs.lOm. ransom. 

Reports that senior executives 
of Schneider, the company 
which crowns the French interest 
of the Empaln-Schnelder Group, 

recently signed a declaration 
that they did not wish ransom 
money to be paid in the case 
of kidnaps have been firmly 
denied by the company. 

The’ baron was seized as he 
was being driven away from his 
Paris flat yesterday morning. It 
now appears that at least five 
men and a woman took part 
in the kidnapping. President 
Giscard d’Estaing, a personal 
friend of Baron Empain, has 
asked to be kept informed of 
progress in the case. So far, the 
police appear to have only the 
evidence of the baron’s chauffeur 
who was injured in the attack, 
and the meagre evidence of the 
vehicles used in the kidnap. 

NATO air chief 
urges decision 

By David Buchan. 

BRUSSELS. Jan. 24. 

the U.S. will make greater use 
of underused European bases in 
NATO exercises this year. 
General Williams Evans said 
here to-day. The U.S. comman- 
der of NATO’s central European 
air forces said SO such bases had 
been identified, and U.S. aircraft 
had already used some iu last 
autumn's exercises. 

Gen. Evans, speaking to the 
Press here after measures to im- 
prove U.S. reinforcement capa- 
bility to Europe' had been 
announced in yesterday’s new 
US. defence budget, also stressed 
the need for an early decision on 
the airborne eaf.v ’"warning 
i AWACS! system. The General 
said it would double NATO’s 
warning time of a Warsaw Pact 
surprise attack. 

The U.K. contribution will be 
11 Nimrod aircraft patrolling its 
sea approaches, but agreement 
on tbe rest of the system— 17 or 
IS Boeing AWACS aircraft— is 
still bedevilled by financial con- 
siderations among other NATO 

Meanwhile, the NATO secre- 
tary-general, Dr. Joseph Luns, 
said last night that those NATO 
governments — including Britain. 
West Germany, France and the 
U.S. — which had received letters 
from President Leonid Brezhnev, 
the Soviet President, asking 
them not to produce or deploy 
the so-called neutron bomb In 
Europe, were now consulting on 
bow to reply to it. 

French gold rush intensifies 


PARIS. Jan. 24. 

FEARS THAT the Left might 
win the March genera] election 
plus general uncertainty over the 
counliy’s economy and the 
instability of the international 
monetary system have intensified 
the flight of the small French 
investor into gold. 

The greatest demand has been 
for the one kilo gold ingot, the 
gold Napoleon coin with a 20- 
franc face value, and related gold 
coins, while State loans indexed 
on gold or the European unit of 
account have also been eagerly 
sought after. . 

After the pressure on it, yes- 
terday. when 15,000 coins were 
exchanged, the gold Napoleon 
stayed at Frs.300 to-day* For a 

coin containing 5.8 grammes of 
gold this represents a 90 per cent 
premium over its gold content 
The 20-franc Swiss gold coin. 

i gold < 

one of the. more popular of the 

many gold coins .traded freely in 
Paris, identical In content to the 
Napoleon, ended the day at 
Frs .269 against 264.80 yesterday. 
Tbe one kilo ingot was quoted 
at Frs -23.895, against Fr&28,140 
at yesterday's dose. 

Amongst State issues the star 
performer was the 4$ per cent. 
1973 issue indexed on the value 
of the Napoleon. Tip-day this went 
through the Frs BOO barrier to 
end at Frs.801. It ended last week 
at Frs.741 and yesterday at 

Analysts are pointing out that 
the volumes traded are still 
below the levels of 1974 when a 
presidential election came within 
a whisper of installing the social- 
ist leader M. Francois Mitterrand 
in the Elysee and that mpnetary 
erosion has made direet compari- 
sons of volume difficult. 

Nonetheless it is dear that a 
couple of pessimistic opinion 
polls on the Government’s elec- 
tion chances and as well as Gov- 
ernment internal sqnabbles have 
sent tiie small investor scurrying 
for security in tbe time 
honoured manner. There are still 
more than 50 days to go to the 

Marchais eases coalition line 


PARIS, Jan. 24. 

M. GEORGES Marchais, the 
French Communist leader, 
appears to have modified the 
position of his party once again 
by stating that the Communists 
would be prepared to join a Left- 
wing government, without men- 
tioning an important condition 
which he had posed earlier. 

Less than two weeks ago, M. 
Marchais made it clear that the 
Communists would refuse, to con- 
clude an electoral pact with the 
Sodalists in the vital second 
round of next March's election 
unless they obtained sub- 
stantially more than 21 per cent. 

of the popular vote in the first 

The explanation for this stand, 
which was considered at the 
time to be the kiss of death for 
the Left, was that the Com- 
munists were interested in par- 
ticipating in a government only 
If they were sure that It would 
not - be dominated by the 
Socialists and that they would 
be able to make their voices 

This position now seems to 
have been watered down, judging 
by remarks made by M. Marchais 
to French political journalists. 
Though the Communist leader’s 

statement was by no means un- 
conditional— the formation of a 
government with the Socialists 
would still have to be preceded 
by an agreement on a joint pro- 
gramme — it has nevertheless 
been interpreted as a conciliatory 
step towards his partners,- how- 
ever sm all- 

Mr. Robert Fabre, tbe leader 
of the Left-wing Radical Party, 
who last September walked out 
of the negotiations on the up- 
dating of the joint programme 
of the Left because of Com- 
munist intransigence, to-day 
welcomed “the change of tone" 
of the Communist leader. 

in London 
for talks 

By Our Foreign Staff 

the Greek Prime Minis! 
arrives in London today oo i 
first leg of a four-nation En 
peso tour designed to spt 
negotiations for Greece’s en 
to the EEC. 

He will hold talks this al‘. 
noon with. Mr. Callaghan, 
Prime Minister, and Dr. Ow 
the Foreign Secretary, bef 
going on to Belgium, France- ; 
West Germany. 

Tbe Greek Gove.nunent i 
posed an accelerated negollai 
timetable to the EEC bef 
Christmas which envisa 
formal admission early next y 
and the completion of subsl 
five negotiations by the raid 
of this summer. Although th 
is a widespread feeling in 
EEC that the Greek plan is o 
optimistic, the European C 
mission is trying to inject fr 
momentum into the talks. 

The British view is that w 
there should be no unnecesi 
delay, there is little to~be gal 
from setting up a precise ti 
table for membership until m 
tiations have reached a ' tr 
advanced stage. 

At the same time. Britain f 
that the Greek application slu 
be judged on its intrinsic me 
and not linked to those of Si 
and Portugal. This is of imp 
ance in relation to the the 
issue of Greek agricultural 
ducts, since there is French 
Italian concern that an ag 
ment with Greece might- se 
precedent that could later pi 
important in negotiations c 
Spanish and Portuguese Med: 
ranean produce. 

The Cyprus issue is also 
tain to be - raised diirins 
Karamanlis’ taLks in Lom 
With the advent of a new Turl 
Government and the recent 
to Cyprus by Dr. Kurt Waldbf 
the UN Secretary-General, th 
are hopes of a resumption of 
stalled inter-communal talks 
the island. 

Mr. Callaghan is likely 
stress to Mr. Karamanlis tha 
the Turkish side does put 
ward a reasonbale offer, it is 
portant that the Greek side : 
pond positively. 

Met in Muniz adds fi 
Nicosia: Turkey is to pull b 
500 troops from Cyp 
to-morrow, it was announced 
the Turkish army headquart 
here to-day. 

David Buchan in Brussels looks at the effects of the Davignon plan for European steel 

Unhappy tale for consumers 

. .. *.>■ ■ ?■ v.- f, 


FOR EVERY European steel 
maker moved to sing the praises 
of the EEC Industry Commis- 
sioner, M. Etienne Davignon, 
there are probably two steel 
users lamenting his latest plans 
to underpin and raise European 
steel prices and to stem low cost 
imports. They could of course 
have seen all this coming. The 
Commission, egged on by hard 
pressed steel masters and govern- 
ments worried about plant 
closures, has been moving in this 
direction for the past IS months. 

But in the measures hastily 
taken in the closing days of 1977 
— u three month penal tariff on 
low cost imports to be replaced 
by price undertakings later, 
extension within the Community 
of compulsory minimum prices 
to three widely used basic steel 
products and increased guideline 
prices for the rest— the indus- 
tries that use steel see an attempt 
to make them bail out the Euro- 
pean steel sector a threat to 
their export competitiveness and 
a danger that the problems in- 
one sector will be merely pushed 
on to another. 

Steel users who run the 
gamut from the metal workipg 
sector through engineering of all 
kinds to the car industry, feel 
their interests have been ignored 
in Brussels. The more 
cynical In the Community Steel 
Directorate say they will measure 
the success of their plans for 
steel by the volume of protest 
from steel users. There is a basic 
imbalance of power between 
steel producers and consumers. 
The latter are a large and motley 
crowd. Orgalizne (Organisms de 
liaison des industries metalliques 
Enropeenes), its European rep- 
resentative body, reckons that its 
constituent national federations 
employ some- 7.5m. workers in 
the Community, while those In 
basic steel matting number less 
than a tenth of that. 

But for all its numerical pre- 
ponderance. Orgalime has none 
of the clout at the European 
level that Eurofer, the body that 
represents the tightly knit club 
of European steel producers, can 
wield. ■“ There is a long tradi- 
tion of cartels among steel pro- 
ducers, and hone among the 
users,’-' Mr. John Salford of the 

British Iron and Steel Con- 
sumers’ Council, points ‘out. The 
Davignon Plan — for good or ill— 
is a Europe-wide producer 
cartel under a politer name, 
yanctionea by tbe Brussels 

Steel users are represented on 
the Community' Coal and Steel 
Consultative Committee. By the 
1951 Treaty of Paris setting up 
tbe Coal and Steel Community, 
the 70-odd members of this body 

little worry about the side effects 
of the Davignon Plan. There is 
ample evidence that Viscount 
Davignon was pushed into 
tougher action against im- 
ports more quickly than be 
intended by thinly veiled threats 
from France chiefly, but also 
Britain, that they might other- 
wise take unilateral action. Mr. 
Edmund Dell, the U.K. Trade 
Secretary, asked about the 
inflationary impact of the steel 

ing companies. j 

The steel using industries are 
most concerned about their 
important export markets. In 
1976, EEC engineering and metal 
working industries exported out- 
side the Community a quarter 
of their total S230m. production. 
The problem is most pronounced 
for smaller countries like Bel- 

gium and Holland. In Belgium 

European steel users are unhappy about the 
Davignon plan to aid the Community’s steel 
industry. They say higher prices must affect 
exports and the plan merely shifts one sector’s 
problems to another. 

are made up of “ equal numbers 
of producers, of workers, and of 
consumers and dealers." The 
steel users' representatives 
claim that that makes for an in- 
built two-to-one majority against 
them. Trade union members 
tend to be u production oriented," 
while In this instance, most of 
the dealers or steel stockholders 
have gone along happily enough 
with the Davignon Plan- The 
crucial vote on December 28 on 
the new measures went 59 in 
favour, five abstentions, and 
three against The committee's 
role is only “consultative" but 
the vote allowed Viscount 
Davignon to claim overwhelming 
support for his policies. 

The 25th anniversary of the 
Committee will be celebrated 
in Luxembourg to-monroW with 
some fanfare. There is no great 
push to revise the Paris Treaty. 
The Commission at the moment 
is only too happy to have its 
wide ranging powers to hand. 
But some of the steel consumers 
(cel it is out of date in the 
weight it gives to producers’ 
interests and the unfettered 
scope It gives the Cam- 
m ission. Basic steel making 
(and coal, even more) is 
no longer as important as la 1953. 
But in spite of the decline in 
their economic. importance, the 
political pull of tbe steel pro- 
ducers is as great as ever. 

National governments show 

measures, replied that it was 
more important to save British 
taxpayers’ money by reducing the 
huge losses of the State-owned 
British Steel Corporation. Other 
governments feel the same. 
Britain is by no means the only 
member state to have a loss- 
making State steel concern. 

No one in the Commission has 
anv idea of what the impact of 
its' steel plans on general indus- 
trial costs and prices will be. 
Even if the Commission wanted 
to, it would be, as Mr. Nicholas 
Groenhart, secretary-general of 
Orgalime, points out, very hard 
to calculate. The value of the 
steel in a product can vary 
between 15 to 50 per cenC 
depending on whether It is a 
simple bolt, or a high precision 
machine tool. But if Viscount 
Davignon succeeds in ' getting 
steel producers to comply with 
the minimum guideline prices 
(which they have only patchily 
obeyed so far) and raising those 
prices 15 per cent during 1978 
(a first increase of 5 per cent, 
was made on January 1>, stgel 
consumers will obviously find 
their costs increased. If the 
system is fully obeyed inside 
Europe, all steel consuming 
industries will be on an equal 
footing In the Community 
market— though even this is not 
certain, for the price constraints 
will be hard to apply to steel 
mili« integrated with engin eer- 

engineering and metal products 
account for 30 per cent, of total 
exports. While Mr, Servaas 
Wijnands, head of the Dutch 
metal users’ federation. FME, 
echoes the worry of his Belgian 
counterparts when he says that 
the increased steel prices, com* 
ing on top of high Dutch labour 
costs and the high level of the 
guilder, jeopardise the 2Q-30bn. 
guilders worth of exports from 
that sector every year. 

The steel users have two other 
concerns about exports. One is 
that international steel prices 
will still remain depressed, 
thereby aiding their competitors 
outside Europe, and that in 
particular Community steel pro- 
ducers will play a pan In this 
by exporting below domestic 
prices-^tbough maybe not to the 
UB. where the new fast anti- 
dumping procedures will deter 

The other is that any tough 
Community action against steel 
imports might lead to retaliation 
against EEC processed steel 
products. The Commission 
intends to negotiate longish term 
restraint agreements on Imports. 
But in the first quarter of 1978, 
while this is being done, the 
EEC commission is taking uni- 
lateral action. This week it 
imposed its first batch of anti- 
dumping duties on imports. 
This is beins followed up by 
dumping investigations. In 
addition, and to the dismay 
of the Commission officials, 
there are well substan- 
tiated reports that France and 
Italy have been blocking alm ost 
all steel imports from the start 
of 1978, from third countries 
(and making it difficult for 
imports from other Community 
countries) since using the many 
means 'of administrative harass- 
ment that their national customs 
services have at their disposal. 

Commission officials say they 
intend to put a check on this 
“ freelance ” protectionism by 
certain member states. But until 
they do, Europe’s steel using 
industries feel their exports un- 
comfortably exposed to retalia- 
tion by third countries. 

For all their grouses, most 
European steel users recognise 
that a viable European steel 
production sector is In their 
long term interest They con- 
cede that while the Davignon 
Plan may make all the difference 
as to whether a steel company 
sinks or swims, few ateel using 
companies are going to be forced 
into bankruptcy by it But all 
the metal users’ federations com- 
plain about the lack of precise 
guidance from Brussels on how, 
for instance, contracts are 
affected by the new steel plans. 

Commission officials complain 
now about the number of tele- 
phone calls they receive from 
puzzled buyers of steel. Even 
Brussels-based journalists, in- 

eluding this correspondent have 

been contacted for any light 
they can shed oh this. 

All contracts involving pro- 
ducts using imported steel 
shipped to the EEC after Decem- 
ber 21, 1977. will have to be 
rewritten unless the buyer 
wants to make a loss. The Com- 
mission made this dear fay can- 
celling all import licences on 
that date and only issuing new 
licences that conform to the new 
m ini m u m import price. But 
many steel users who buy Com- 
munity steel are uncertain about 
the effect of the new compul- 
sory minimum prices. 

These now cover reinforcing 
bars (since May 1977) and hot 
rolled coil? and merchant bars 
(since December 1977)— products 
widely used in the construction 
metal manufacturing, and car 
industries and accounting for 
about 30 per cent of total EEC 
steel production. The Commis- 
sion says the date of contracts 
covering these products is Irrele- 
vant, and that the minimum 
prices must be obeyed on the 
day of actual delivery; 

So, long-term contracts signed 
before the various minimum 
prices came into force provide no 
escape. The usual price rebates 

Viscount Etienne Bavfeno- 
plans to help steelmakers 

given by a Community 's! 

maker to steel buyers ‘majL-c 
tinuc, but they must not 
increased. ' 

Naturally, a- variety ot 
users have been clamouring 
special exemption from'". 

compulsory minimum. <pn» 
For instance, tube manul 
turers have pressed on Ihfi C' 
mission that they sould not h 
to pay the new minimum PK 
for coils, u principal *dP u L 
far the Commissi oo has 
a deaf ear to these request, 
except in one important c; 
shipbuilding. Here Visco 
Davignon’* officials realise ! 
this industry is in no pawl 
to shoulder new costs, and t 
are considering way® 
cheap steel plate imports r 
the Community. 

One technical “flddlo f* 
considered by the Pavtg 
officials would he to declare i 
imported steel plate, built 
EEC yards into ships 
export outside the E 
had never ’ "entered 0 -* 
Community, and so would 
have to meet the minimum 
port price. The amounts cc v 
be large. From January-tib*' 
ber 1977. Japan alone tsepft 
200,000 tonnes of steel plan 
tile EEC, more than a flfti 
its total steel exports hr 
Common Market. But if 
happened, the clamour of o 
sectors for special cream 
would roach a new pitch. 

World Output-Page 5 - 

1 i 



Financial Times Wednesday Januaiy 25 1978 




urns up 
ver Canada 

f Our Own Correspondent 

SOVIET military satellite, 
tvered by a small nuclear 
werpack, fell to earth over 
nli-west Canada early this 
irning about a month after 
S. intelligence officials first 
ticed that It was In trouble. 
Dr. Zbigniew Brzeziuski, the 
esidenfs National Security 
tvlser, told reporters this 
. >rntng that the satellite, 

|. lich was fuelled by several 

i\ ‘if tunds of enriched uranium 
\ give It electrical power, had 
most certainly burnt up as it 
I -entered the earth's atxnos- 
J iere. U.S. aircraft had been 
"'nt to measure possible radJa- 
m but “ this Is not a horror 
j" r enario," he said. 

1 JJr. Brzezinski said that no 
upons bad been aboard tbe 
. telilte . which was launched 
September. Last month he 
id U.S. monitors had noticed 
at it was having problems 
id earlier thig month he had 
ked Mr. Anatoly Dobrynin, 
e Soviet Ambassador, to " 
I vise the administration if its 
-entry would cause any 
ingers to health or properly. 
He said that after several 
ore promptings the Soviet 
□ion had supplied enough in- 
irmation for the U-S. tD con- 
. ude that the risk of 
tdio - active contamination 
om the satellite was small. 
Tbe satellite plunged to earth 
ils morning and disintegrated 
in the course of. a. pattern 
. hich took it over Queen 
harlotte Island off British 
olumbia." If debris eventually 
:II to earth; he said, it 
robably landed roughly in the 
rea east of the Great Slave 

National Security Council 
fficials stressed that the Soviet 
Ini on bad, in the end, co- 
perated fully with the U.S. 
nd the whole affair had been 
andled responsibly. They said 
iiat the Russians have sent 
lore than ten miniature 
udear reactors into space bnt 
Iiat on each previous occasion 
hey had been boosted far-into 
■uter spare where they were 
-xpected to stay In orbit for up 
o 1,000 years and fall apart 
before reentering the earth’s 

tenter adds from Edmonton: 
Canada has sent a team of 22 
•xperts to an area about 60 
niles from Yellowknife In the 
Northwest Territories, where 
debris may have fallen. 

MiHer praises Fed moves 
to underpin dollar 


Hopes fade for 
coal strike 

By Stewart Fleming 

NEW YORK, Jan. 24. 
40PES that tbe wage contract 
□Iks between the striking 
Jnited Mine Workers’ Union 
mil the Bituminous Coal 
Jpera tors’ Association were 
noving rapidly to a settlement 
aded to-day when the union 
-ejected (he laresl management 
iffer and broke off discussion. 

The coal strike has moved 
ntu its seventh week, halting 
lutpul of about half the coal 
iroducUon In the U.S. and 
naking Idle some 160,000 
nembers of tbe UMW. The 
-edcral Mediation and Con- 
''•ilialion Service, which ' has 
jeen keeping pressure on the 
wo sides to continue the talks, 
vas expected to make a state- 
nenl later to-day. 

In recent days, there have 
leen reports that the two. sides 
vere moving closer 'together. 

There, uete indications that, 
it least on wage and remanent- 
ion benefit*, (the economic 
•y.A ssues). the union and the 
ndusiry were close to agree- 
iient. The outstanding problem 
ermed to be the owners* 
,-lelermm**d efforts to' try to 
*';et agreement over proposals 
.Jun'd. a! reducing the disrup- 
tion caused by wildcat .strikes. 
The owners have been press- 
es foe financial penalties Tor 
niners who go on unofficial 
^rlkiN so as to have them 
.^uake up payments -to- , the 
industry finance, health . add 
vlirenirDt funds., which .are 
y iiaimaim-d by royalties based 
r-jnt hours worked and produc- 

As ifae strike lengthens, and 
vith at least a ten-day Tatifi- 
.-atlon period needed after any 
igreement, there is increasing 
roncern about Hie impact Nif. 
tbe dispute on the economy. 

So far, with slocks high and 
lrodnclion continuing . from 
be coal-field* not manned by 
UMW members, -there have 
wen no serious disruption. 
*ul Fears or coal shortages in 
pertain districts are increasing. 

MR". G-. WILLIAM Miller, the 
choice of President! Carter to be 
the next chairman of the Federal 
Reserve Board, stated to-day that 
the recent decline in the value 
of the dollar had been “over- 
done," and that the Ted and 
tbe Treasury had been “ timely ” 
in acting to end dlsorderliness 
in the foreign exchange markets. 

He generally endorsed the 
floating exchange rate system, 
but noted that. Boating rates 
could be subject to speculation 
and . produce •“ unrealistic " 
changes in relation to true 
economic facts. * It was neces- 
sary, he said, to haveVa “prac- 
tical ’• policy towards- the U.S. 
dollar which would take account 
of the potentially adverse impact 
of too cheap a dollar on the 
domestic economy. 

These were the principal inter- 
national points in the opening 
day of Mr. Miller's appearance at 
a hearing by -the Senate Banking 
Committee,, which is considering 
whether to recommend confirma- 
tion by the Senate of the appoint- 
ment. His performance was 
lucid and persuasive, without 
ever suggesting that he would 
Institute drastic policy changes 
at the Fed. 

The day was also marked by 
extensive digressions into 
whether or not a subsidiary of 

Textron Corporation, of which 
Mr. Miller ~wa$ chief executive, 
had made improper payments in 
1973 in Iran. As a result of the 
questioning. Senator William 
Promire, the committee chair- 
man, ordered the committee staff 
to investigate the matter further. 
The case, fn question concerned 
the payment' of 82.9m. to a 
former Iranian agent (a high- 
ranking military officer) of Bell 
Helicopter, a Textron subsidiary, 
in connection with a sale of heli- 
copters worth more than $500m. 
to the Iranian Government. This 
payment, it Is alleged, bad not 
previously been disclosed, which 
may constitute a violation of the 
regulations of tbe Securities and 
Exchange Commission. - 

Mr. Miller carefully replied 
that, although the fee was large, 
it represented a tiny fraction of 
the value of the contract and 
essentially .constituted a termina- 
tion fee for the services of the 
agent who had worked for Bell 
on and off for more than 12 

Mr. Miller also stated that the 
fee had not been charged up as 
part of the contract, but be 
acknowledged that it had been 
claimed by Textron as a business 
expense against tax liabilities. 

Several Senators, clearly im- 
pressed with Mr. Miller's per- 


fo nuance an economic grounds, 
expressed confidence that he 
would be confirmed once the 
matter was cleared up. Even 
Mr. Froxmire, who had earlier 
been sharply critical of Mr. 
Miller's qualifications — he sug- 
gested that a monetary profes- 
sional was required — said that 
he might vote for confirmation. 

On general economic matters, 
Mr. Miller was circumspect, 
declining several opportunities to 
be drawn into criticisms of tbe 
policies of Dr, Arthur Burns, the 
retiring chairman. Recent Fed 
actions, he said, “have been 
generally correct." His awn goal, 
if confirmed in the post, would 
be to continue to try to steer 
monetary policy so as to serve 
the needs of adequate growth 
and lower inflation. 

He stressed that there was 
slack in the economy and was 
concerned that the rate of growth 
might prove insufficient. He 
added that a continuing 6 per 
cent underlying rate of inflation 
was “ unacceptable,” but that it 
would not be easy to reduce. 

Mr. Miller also declined to rule 
out absolutely any form of wage 
and price controls — a red rag to 
business and labour here — but he 
expressed a clear preference for 
voluntary action along the lines 
advanced last week by President 

Carter defended on prosecutor 


THE U.S. Justice Department to- 
day took tbe highly unusual step 
of publicly announcing that 
President Carter and Mr. 
Griffin Bell, the- -Attorney- 
General,- had not acted un- 
ethically in dismissing * federal 
prosecutor in Philadelphia. 

The announcement followed 
the equally unusual - taking of 
sworn statements from. Mr. Bell 
and President Carter, following 
allegations that they 'moved to 
dismiss Mr. David Marston, a 
federal prosecutor appointed to 
Philadelphia by President Ford, 
because be was investigating two 
Democratic Congressmen on pos- 
sible corruption charges. • 

Mr. Marston and others, have 
charged that one of the' Con- 
gressmen, Mr. . Joshua- Eilberg, 
asked President Carter to. dis- 
miss Mr. Marston last November 
and that the President moved- to 
do so knowing that Mr. Eilberg 
was under investigation.! . *■ 

Mr .-Wade McCree, the Soli cJW 
General, 'said this afternoon that 
an internal Justice Department 
inquiry had concluded that, 
neither the President nor 
Mr. Bell knew that any Congress- 
men were under investigation in 
November, although ■ others in 
the Justice Department, accord- 
ing to Mr. Marston, did know 
that members of Congress were 

President Carter has always 

insisted that he did not learn 
that Mr. Eilberg. was being in- 
vestigated until January Z2, 
when he fared a series of ques- 
tions about the inquiry at a news 
conference. The taking by the 
Justice Department of a sworn 
statement underlines how sensi- 
sive official Washington is to 
charges of this kind post- 

Mr. Carter has also made his 
own position worse by apparently 
encouraging the removal of a 


Republican prosecutor less than 
a year after he made a point of 
saying in his election campaign 
that he wanted to " depoliticise ” 
all legal and judicial appoint 
men is. 

Mr. McCree and Mr. Bell said 
to-day that the investigation into 
the two Philadelphia Congress- 
men would continue and would 
be pressed borne if necessary. 
The charges are in connection 
with the building of an extension 
to a Philadelphia hospital. 

Venezuela debt estimate 


THE TOTAL public debt of the 
Venezuelan government will 
reach $10.2bn. (Bs.44bn.-) by, the 
end of this year, the Finance 
Minister, Sr. Luis Silva Luongo 
has stated. 

He - said that some $249m. in 
foreign credits would .be used 
for re-financing existing debt, 
while $2.56bn. would be applied 
to government projects in basic 

• -The figures given by the 
minister indicate that Venezuela 
will apparently seek more than 
S2bn. this year , in new credits. 

However, it is not known exactly 
how much will be in the form 
of loans or bond issues abroad. 

CARACAS, Jan. 24. 

' The government is now put- 
ting final touches on a loan 
agreement, for S1.2bn., with a 
syndicate of overseas banks. The 
ten-year credit, to be -.granted by 
U..S-, European and Japanese 
banks, will be made at i per cent, 
over labor with a three-year 
grace period. 

Estimates by the Central Bank 
of Venezuela last month put the 
public debt at $8.05bn. at the end 
of 1977. up by 55 per cent, from 
the figure registered at the close 
of 1976. External public obliga- 
tions for the end of 1977 were 
estimated to be S4.77bn., up from 
$3.5bn. a year earlier. 

U.S. pressed 
to put off 
aircraft sale 
to Saudis 

By David Bell 


THE CARTER Administration is 
coming under renewed pres- 
sure to postpone for the second 
time the sale of 60 advanced 
fighter aircraft to Saudi Arabia, 
posing it with an acute 
dilemma id the midst of the 
current Middle East peace 

Although the Saudis are pressing 
for an early favourable deci- 
sion on their request for 60 
F-15 aircraft, Mr. Ezer Weiz- 
man, the Israeli Defence 
Minister, is due here shortly 
in a fresh attempt to get the 
- administration to sell his 

Government at least 20 of the 
same aircraft. Approval of 
such a sale, at this particular 
moment, could greatly anger 
the -Egyptians, who are them- 
selves pressing the U.S. to give 
them advanced weapons. 

But it Is the Saudi decision that 
is probably the most pressing. 
Relations with Saudi Arabia 
have been somewhat clouded 
in recent weeks, partly because 
of the failure of the admini- 
stration to get the energy Bill 
through Congress, partly 
because of the fall in the 
dollar, and partly because of 
Saudi doubts about the Sadat 
peace initiative. 

The Saudis thus consider the 
deal to be a key symbol of 
U.S. attitudes to the Riyadh 
regime. But several leading 
senators and the powerful 
'Israeli lobby here argue that 
the sale of these advance 
aircraft would upset the Arab- 
Israeli balance of power and 
give the Arabs an important 
advantage in the event of 
another wur. 

Senator Frank Church, who is 
likely to be the next chairman 
of the Senate foreign rela- 
tions committee, has been 
putting new pressure on the 
Administration to recognise the 
logic of the Israeli position 
and postpone the sale. He has 
circulated a letter in the 
Senate ti this effect, a letter 
which the . Administration 
takes very seriously because 
Congress has the power to 
; block the S 1.5 bn. Saudi deal. 
Administration officials have 
argued tha* it might be pos- 
sible to set up some kind of 
‘‘package deal" under which 
•the Saudis. the Israelis and 
the Egyptians would all be 
sold advanceo aircraft at the 
same time This might take 
some cf the heat out of the 
situation, hu* many senators 
' are *311 convinced that this 
is the w»onc time to announce 
any new Middle East arms 

Last summer the threat of 
opposition of the kind Sen. 
Church is now considering 
convinced the administration 
to delay the formal notifica- 
tion nf the proposed sale to 
Cnogrcss which is required by 
Jaw Once this has been made. 
Congress has the power to veto 
any arms sale above S2Qra. 


The clouds lift 
for Manhattan 


Chile ‘to put 
row on ice’ 

It appears lhal a basis for de- 
fusing the Beagle Channel 
boundary dispute between Argen- 
tina and Chile has been laid 
Robert Lmdk'.v writes from 

of ilic dispute for at least six 
months, during which time 
Chilean and Argentine experts 
will study the impasse. Their 

Usk would be to produce a docu- 

foreigners who are in a position j mem establishing “ precisely and 

* definitively '* Hie positions of both 
j i-oiin tries m the disputed area 
i near Cape Horn in the future. 
Such a mme would not mean that 
Argentina relinquishes its claim 
to waters and islets in the area 
where, ihe A men l me Government 
mamiaiifi. Chile has extended its 
da inis excessively. 

Peru emergency 

THE New York City real estate Foreign financial institutions 

community has reached a are interested only in the most . p . ■ »■ lk hclween .h,. 

cautious consensus that things ^ S i ,ei ° us n ° m i l ; e ' respective presidents— .force 

are improving. After four years are generally new buildings. | viucla ami Gen. Augusio Pino- 
virtual nar, Vtfs hMiu"ht about ? helr employees share Similar J du-I-whirli b eqan ,as? week. Will 
vjf^uai paralysis brought about interests when looking for living L.nd to-morrow in Chile. It Is 
by the snowball effects of the accommodation, a fact that has j reported at iheir meeting 
energy crisis, the city's near- played it large pan in a recent , ] a >i week in Mendoza. Argentina, 
bankruptcy, and a wave of cor- boom of luxurv apartments and J the two presidents worked out n 
porate departures, the clouds town houses. * document *hk-h is subject to 

seem to be lifting shghUy. Mr. In addition to the balfdo^n j ibis 

Lou Rudin, a major builder- °® c *‘ buildings currently , appiw;t | t< rorthcnminc. a status 
owner, expressed lie general 1 lw in * h0 arfa 

sentiment wbeD he said: “Vie are also planncd- Demand for 
are on the way back.” hotel rooms has increased notice- 

This is especially true in ably during the past 12 months 
Midtown— the central business a° d , some of J* « attributable to 
hro „ «f u, nh ,i» gn icitnri foreigners Who are in a position 
area of Manhattan Island l0 pay a cnod prict > because of 

bordered roughly by 42nd Street , he decline or the dollar, 
and 59th Street to the south and Towcrlng „ ver all lhis activity 
north. Third Avenue and Avenue i n Midtown, and considered by 
of the Americas ( Sixth Avenue) uiail y ttJ be a symbol and herald 
to the east and west. Office of a resurgence of the city, there 
occupancy rales are rising so j s the .4150m. Citicorp Center 
quickly that reaJ estate agencies which even before its opening 
are hard put to keep up; in i ast autumn has had a radical 
many cases they are double what effect nn its surroundings and 
they were last year at this time, the city sky-line. Us office tower, 

Mr. Kenneth Patton, the head of which' looks like an upended, . . r . ni __., pn ,. v 

the Real Estate Board o New doDrst oop is the eighth larges! Mn Pero 'n ?he 

York, a pnvate organisation of skyscraper in the world and said SS . , c ■ . f t 'Liboi! E" 
SS & be «**■“* energy-efficient. | ™ strike 

The complex consisting of three. f( „. soxvn 1%ceks :iT a plant there, 
commitments, companies waiting buildings, occupies a block on . demanding a 2 S per coni, pay tn- 
pernaps a little too long . . - to Lexington Avenue which in spile crease and the reinstatement of 
expand into new space. Now its of its prime location had been , j n worker fired after a general 
turned around in tbe last six deteriorating, littered with a ! strike in July. Reuter reports 
months and they are hastening preponderance of seedy bars and j from Lima. Two workers were 
to catch up.” massage parlours. I reported ti.» have been killed in 

Demand, according lo Mr. There is something or a tradi- ! rr s l^'VhVilibo| l ^ !, Kur*SL-r 
Patton is coming from medium- Uon in New York City of major [ , i ' lk m ^ n e ™ Monday unit 
gg development designed to serve \ ^ klT I went ^ brief strike, w 

m,rirM” Thr 0 ! lh ® <* u , al purposes of business i support ,iic steel workers. 1 lie 
and cu,lure - | city has suffered so\ ere economic 

real eXate^Ss 0ther al ea8i of the cit - v ore I depression and unemployment, 
level (they had been climbinl not doin S as wel1 “ Midtown, particularly since the catch- 
iltheSfe nffi uprcent.^nm? Mr. Frank Trofsi of James Fell | In « «nd processing industry went 
Idly LS tat u2 ‘S ctafMJerta. to^rt real I d «‘"“ ln bsl > liree 

intervention in city affairs: and S 1 ?L ale . ri 1 ^ lves n tD . r 33 P a . rt >t u ' ar ‘ 
the introduction of modest tax J* . d ° ei B JJ® Qt w J “ n iantl 

relief for business-created the ^^. al Tn P 3 e ^' ’SLJ'SS 
psye hologlcal atmo. P** ma £ e s U de 

sphere necessary to expansion. whereas a few years ago the 

With the Midtown office mar- West-side and Broadway in 

ket getting tighter, construction particular were attracting ajma immisnmis, Victor Mackie 
of new buildings and sales of good deal of interest and several ; writes from Ottawa. The Quebec 
older ones are on the upswing, projects, including a conference 
although, as one lender, Mr. Rex centre were started. “To-day l 
Tompkins, president of Dry cannot give them away." There 
Dock, a savings bank, cautions. i s some hope that the newlv 
“it is not like the boom years expanded Port Authority buiid- 
of the 1960s. where commercial ing on West 42nd and the Con- 
banks were making construction vention Center if and when it 
loans without commitments from settles into one of two West-side 
a savings or insurance institution locations, will eventually re- 
for permanent loans. The con- vitalise the area, 
sensus is that buildings will , nufr(nurn Woll 

generally be smaller now. to save ^ for downtown Wall 

time in finding land and- con- Street area, the other centre of 
strurtion. and to suit the needs prestige addresses. It is only see- 
of the medium-sized American ing a slight comeback from the 
companies or. increasingly, inter- worst days oF the 1970s> Ta i te 
national financial institutions. arp now uader ^ t0 bujld 

Demand from abroad is being a hote[ at the World Trade 

estate market' The® weaken^™} Center, the first in Lower Man- 
tbe dollar has enticed In Euro- Itattan since the turn of the 
peans. Arabs, and Japanese lo century. 

New York. Investors from the 

petroleum-producing countries |. n „ (UL timm. ru^nhut dnnv c«cn sun 


Quebec language 

The Canadian government is 
offering Quebec a new deal aimed 
at attracting more French-speak- 

are said to he Quite active m dm and holiday*, u.s. Mii*-.Tipn,m ™i« 

"I,, “111," Ulr (relehl) VWini i.i.r mmli net annum 

real estate investment. stowd cia«> ponauc mm m «n \<,rk. m v. 

immigration .Minister, M. Jacques 
Couture, said that the deal would 
are Quebec decisive | rowers in 
the selection of immigrants. He 
said his Government was “on the 
brink of signing it." Meanwhile, 
Ihe Quebec Superior Court has 
annulled key provisions in a con- 
troversial law passed by ihe 
provincial government which 
made French the language of the 

Barbados payments 

The Barbadian 1977 balance of . 
payments deficit will be in the 
region of SB20m. (SUSlOm.), Ihe 
Central Bank reported yesterday, 
Reuter reports from Bridgetown. 
The bank said that the deficit was 
“ encouraging " as compared with 
the 1B7H figure of SB39m. 
tSL' “We have done a 
little better. This is largely a 
result nf import controls." 


Whitehall seeks a way out 


Hn.TigT in.Ti a. 


. j Jg 

“j MaferdCJS&n 


> Guatemala r 




A Renaissance of 

A lu\urj- hotel in the peat 
Furnpvan uadi lion. Elrgant.quTc^, ■ 
unrulflcil— -ncviT a convention. 


ti jjhiMlNi i Cwurt .t(Wr#«'» 

JSih & M Sciwti, MVL^Wuhfngion, D.C WOOJ 

Teles W345 

or at yuur Uai'd awnt • 
lUarduQ ft. Ctm-c. ^o^rirtvr 

TALKS IN London on the 
future of the remote British 
colony of Belize in Central 
America are to continue to-day. 

The intractable nature of the 
problem is indicated by the fact • 
that Dr. David Owen, the Foreign 
and Commonwealth Secretary, 
and Mr. George Price, the 
Premier of Belize, were expected 
to have ended their discussions 

Britain wants to see Belize 
graduate to independence as soon 
as possible. This would release 
Whitehall from the need to 
station a garrison of British 
troops, backed by the Royal Navy . 
and. the RAF. in a strip or far 
away land about which the pro- 
verbial man on the Clupham 
omnibus knows little. 

The garrison is there to 
neutralise any attack from the - 
military-dominated regime of 
General ' Kjell Laugerud ra 
neighbouring Guatemala, which 
claims sovereignty over Belize. 

The Foreign and Common- Monkey River, whose mouth is 
wealth Office in general, and 45 miles from the southern tip 
Dr. Owen in particular, want Of Belize; ail south of the Rio 
action — in the form of a British Grande, 25 miles from the tip; 
withdrawal — fast The day of and all south of the Moho River, 
the colony is over, they say. 12 miles from the tip. One 
They want an arrangement with current proposition is that all 
Guatemala which could involve land south of the Moho River, 
the granting of Belizean terri- together with that stretch of 
lory and British aid in exchange sea between the Moho and 
for an undertaking that Guate- Ranguana Cay, should go to 
mala will give up once and -for Guatemala, 
all its claim. . - All these schemes would In- 

in this they are supported valve the cession of land and 
discreetly by Washington; which marine areas where a. consor- 
wants no new sources of friction tium led by Exxon is currently 
in an already troublesome Carith drilling in search of oil. Some 
bean on its back door. Washing- ten wells are to be sunk of 
ton would be happy to mediate which two, one offshore, have 
to spite OF the fact that ten been, completed, 
years ago a compromise agree- One suggestion is understood' 
mcnr worked out by Mr. Betbuel ta have been that rights to any 
Webster, a U.S. jurist, appealed oil found in the area ceded 
to none of the parties involved, would be split: equally between 
The thinking in Whitehall and Belize - and - Guatemala- -The 
Washington is that there will he Belizeans are naturally worried 
no solution which does not in- at Ihe thought of the loss, or a 
voivc Belize ceding some token large "potential sourre of wealth, 
amount of land lo assuage the Apart from some citrus, sugar 
tempers of the, Guatemalan min- and lumber the is little now to 
i ary dictatorship. Both also feel give a livelihood to the sparse 
that i! would, be better to do population of 120,000 -Belizeans, 
a deal to-day with General in negotiations the Guatemalan 
Laugerud than wait while he government of General Lavgerud 
and his successors build up has laid particular claim to land 
Guatemala’s military polentiaL nnd sea areas which would give 
(Jt is doubtless no coincidence Guatemala sovereign control of 
that Mr. Terence Tollman, the a route between its ports, Puerto 
U-S. Assistant Secretary of State Barrios and Santo Tomas, and 
wbo deals with Latin America, ■ the Caribbean. The Guatemalan 
was in Guatemala City yesterday government says it is worried by . 

Dr. Owen and Mr. Price met the. fact that at present access 
in London.) from, the Caribbean to the ports 

Various plans for tbe cession- passes through wafers in the 
of - territory to Guatemala have jurisdiction of Belize - and 
been mooted. They have ftv. Honduras, 
eluded all land, south- of _ the The Price • government has 

been unyielding in its resistance 
to the cession of territory. This 
it Fears, would only whet 
Guatemalan appetitites for more 
and prove an occasion for future 
recriminations, with Guate- 
malans complaining that not 
enough was taken and Belizeans 
arguing that too much was given 

In its stand tbe Price govern- 
ment has been supported by the 
governments of tbe Common 
wealth. Caribbean, notably 
Guyana, which has border dis- 
putes with its neighbours Vene- 
zuela and Surinam, and which 
does not want the precedent 
created of frontiers bein; 

In the rest of the Caribbean 
too, the Belizian stand has been 
supported and Mr. Morarji Desai 
leader of the Commonwealth's 
most populous country, India, is 
believed to have given Mr. Price 
particularly strong backing. 

Somewhat tangential to the 
dispute is Mexico, which has 
dormant claim to a small stretch 
of northern Belize. The Mexicans 
■ say firmly that they will not 
revive it unless Guatemala takes 
over southern Belize. The 
Mexicans have in fact let it be 
known that they would be willing 
to intervene militarily on the 
Belizean side against a 
Guatemalan invasion. 

Although Britain is anxious 
for settlement of the question it 
has consistently stated that it 
would do no deal which did not 
have the support of Belizeans. 
Any deal which was opposed by 
Belizeans would obviously be 
repugnant to the big majority, of 
the members of the UN, which 
have on several occasions voted 
in favour of Belize’s stand for 
full and secure sovereignty with- 
in its present borders and against 
the Guatemalan' claim. 

The difficulty facing Dr. Owen 
To-day is that of persuading Mr. 
Price that a token cession of land 
to Guatemala is the only viable 
wav forward. 

So far Mr. Price has shown no 
inclination to be persuaded. In 
the highly unlikely event that he 
were to be persuaded, it would 
be . next to Impossible for him 
to sell. tbe idea to his electorate. 

Both bis own party, the 
People’s United Party, and the 
Opposition have ruled out accept- 
ance of any territorial conces- 
sion. tyba! the eventual outcome 
will be aod when the last British 
troops leave Belize is anyone's 
guess. A solution to the imbro- 
glio looks like continuing to be 
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Elnancial Times Wednesday January 25 197S 

• sTry-ii 



Syria, Iraq peace hopes 
at ‘rejectionist’ summit 


AN ARAB summit bringing 
Together Syria and Iran in 
opposition to President Sadat of 
Egypt’s bid for peace wiLh Isarel 
will’ be held in Algiers early 
next week, probably on January 
it was confirmed here to-day 
by officials. 

The so-called “steadfastness” 
summit will be preceded by a 
meet ins of foreign and defence 
ministers. According to officials. 
il will aim at the elaboration of 
:m “ efficient plan to foil Mr. 
Sadat's plans and to reconcile 
the rival regimes of the Baath 
Party ruling in Damascus and 

Tt is expected that the 
Palestinian Liberation Organisa- 
tion. Libya and South Yemen 
will be represented at the gather- 
ing in addition to Syria. Iraq and 
Algeria. It has been arranged 
following President Boumed- 
lenne's intensive efforts tn 
mediate between Syria and Iraq. 

A hint i»f the Syrian Govern- 
ment's strong desire for a recon- 
ciliation was given yesterday by 
.Mr. Abdel-Halioi Khuddam, the 
Foreign Minister. In a speech to 
Damascus University, he said: 
" We in Syria will try to restore 
the strategic balance between us 
and the Zionist enemy in the 
tight of the defection of Sadat 
to the enemy.*' 

He also asserted that Syria 
was doing every thing in its power 
to strengthen its armed forces 
and to form an Arab front 
capable of conducting “ the 
national struggle.” 

Without reconciliation with 
Iraq and its participation in an 
■' Eastern Arab front." there is 
little that Syria and Jordan can 
do to confront Israel militarily. 

With reference to Egypt. RIc. 
Khaddam said: “If one nation 
falls into a swamp, this does not 
necessarily mean that a whole 
nation has given up its goals 
or ambitions.'' 

He spoke amid heightened 
apprehension here that the U.S., 
Egypt and IscaeJ have agreed 

upon a plan to resettle the Pale- 
stinian refugees in the Lebanon. 

Ihsan Qijazi adds from Beirut: 
Informed diplomatic sources 

The Shah of- Iran is re- 
portedly considering an oil 
embargo against Israel if the 
Middle East peace negotiations 
are stalemated, according to 
the oil newsletter, Arab Press 
Service, Ihsan Hijazl writes 
from Beirut. However, there 

was no confirmation In Tehran . 
and informed sources believed 
such a move unlikely. 

reported Libya is putting up 
the money to pay for the 
now Soviet arms deliveries to 
Syria. The total amount may 
run as high as $lbn., the sources 

DAMASCUS, Jan. 24. 

They added that Colonel 
Boaznedienne told Soviet leaders 
when he visited Moscow earlier 
this month that Algeria will be 
ready to pay for whatever extra 
arsenal the Syrians may need 
in future. 

Reuter reports from Kuwait: 
Saudi Foreign Minister Prince 
Saud al-Faisai paid a brief visit 
to Kuwait to-day but no official 
announcement was made on a 
much -heralded joint effort to 
mediate Arab disagreements over 
Egypt's peace moves. 

Prince Saud, who met the Emir 
of Kuwait, Sheikh Jaber ai- 
Ahmed al-Sabah and Foreign 
Minister Sheikh Sabah al-Abmed 
al-Sabah, said it was the responsi- 
bility of all Arab countries to 
seek the rallying of Arab ranks, 

Lebanon clashes intensify 
with dispute over village 


BEIRUT, Jan. 24. 

CLASHES in Southern Lebanon 
gained in Intensity early to-day 
as Palestinian guerillas and 
right-wing Christian forces 
fought to control the village of 
Blat about eight miles from the 
Israeli border. 

The rightists said their forces, 
operating out of Marfa joun. 
mounted an offensive late last 
night and captured the village. 
By dawn they were undertaking 
mopping-up operations, accord- 
ing to the Voice of Lebanon, 
the radio station of the Chris- 
tian Phalange party. 

Eyewitnesses reported that 
the Palestinians to-day mounted 
a counter-offensive to recapture 
the village. Palestinian sources 
said Blat was now back under 
their control, but the situation 
remains unclear. 

The former President Franjieh 
made a short visit here for con- 

sultations with President Hafez 
al Assad, who is a close friend. 
Mr. Franjieh is one of the 
leaders of the “Lebanese Front" 
which groups the main right- 
wing parties in the Lebanon. 

Since President Sadat visited 
Jerusalem and started his 
dialogue with the Israelis, Syrian 
leaders have feared a new flare- 
up in Lebanon; The Egyptian 
leader did formulate, during a 
recent speech, fears that the 
Lebanon would- witness renewal 
of the civil war if Syrians and 
Palestinians did not support his 

Syrian leaders are accutely 
aware that the civil war in 
Lebanon intensified after the 
second Sinai Accord was con- 
cluded between Israel and 
Egypt. At the time, Syrians and 
Palestinians expressed opposi- 
tion to the agreement condemn- 
ing Mr. Sadat as “ a traitor.” 

Israel may 
decide to 
send team 
to Cairo 

Sjr David Lennon 

TEL AVIV, Jan, 24. 
THE PROSPECTS for a break- 
through in the Middle East 
peace negotiations stalemate 
improved slightly to-day. The 
Israeli Cabinet may decide on 
Sunday to send its delegation 
back to Cairo to .renew the 
military talks wih Egypt 
The decision of the Minister 
of Defence, Mr. Ezer Weizman, 
to postpone his trip to Wash- 
ington, planned for Thursday, is 
being explained by officials 
here as designed to demon- 
strate Israel’s preparedness for 
a renewal of the military talks. 

Bat they also eantioned that 
it should not be Interpreted as 
meaning that agreement to 
renew the talks has already 
been reached. 

The Government will be 
watching Egypt's ■ reaction to 
the speech yesterday of the 
Prime Minister, Mr. Menahem 
Begin. If there is a lowering of 
the level of attack on the Prime 
Minister and the Government, 
the Cabinet is likely to decide 
at its meeting on Sunday to 
send its delegation to Cairo for 
a continuation of the miliary 

Israel Is anxious to see the 
political talks restarted and is 
reported to be showing some 
flexibility on the crucial 
Palestinian issue. 

The U.S. Assistant Secretary 
of State, Mr. Alfred Atherton, 
met to-day with the director 
general of the Foreign Ministry, 
Mr. Efralm Evron. 

Michael Tingay -adds from 
Cairo: Egypt today waited to 
discover the outcome of the 
talks in Jerusalem between 
Mr. Alfred Atherton and 
Israeli leaders. 

Egyptian officials were un- 
able to confirm rumours that 
Mr. Atherton would be flying 
to Cairo to-morrow for talks 
with President Sadat Mr. 
Hermann Eilts, American 
Ambassador in Cairo, saw the 
Egyptian leader to-day but 
there was no word available, 
from the U.S. embassy. 


A new 

-.1 . 



THE OFFICIAL -visit which criticised by the Gaallists for by their governments. . 

President- Giscard d’Estaing has abandoning French independence Though President Giscara. m 
just paid to the Ivory Coast— In world affairs and kow-towing Ms proposal for a 
which together with Senegal is— to the U.S., the President regards solidarity pact, on which he wm 
France’s closest black African Africa as a suitable region in sound out his European part- 
ally — has again turned the spot- which to confound his detractors, ners at the next Com mon Market 
light on what has become known Encouragement for his policies summit meeting, continues to 
as France’s "Kew African has lately come from an unex- place most emphasis on its de- 
Policy” peeled quarter. President Jimmy velopment aid aspects, the French 

Critics tend to look upon this Carter, during his visit to France are increasingly thinking in 
policy as mere neo-colonialist earlier this month, apparently ex- terms, of security and defence, 
nostalgia and the desire by a pressed considerable sympathy With a military presence of 
former imperial power to play a for French policies In an area about ' 7,000 men in French- 
world role which it has neither of the African continent where speaking Africa, not including 
the economic nor military power U.S. influence has not, so far, L2Q0 military advisers, bases in t.\ -vjH 
to ful£L President Boumediexme been very great. To what extent Senegal, the Ivory Coast, Gabon, [. ■:-/£? 
of Algeria has even gone as far this support will make itself felt Djibouti and the Comoros ■* 

as accusing France of wanting to in practice remains to be seen, isflnnd of Mayotte and, not least, 
act as “The Gendarme of but the French, at least, feel that a special l Wstrong emergency 
Africa.” But the explanation for they are not acting entirely in force stationed in the South- . «,&**«*»**» 

the new French interest m isolation. • West of France and ready to I? tte; : Place, tooMhdaihy 

Africa is certainly more complex. — ; - intervene anywhere at a pact proposed by t te g y aen 

Presidents Senghor of Senegal Backed bv several leaders moment’s notice, France con- ?^®ndc« is niwmuijo 

SfcWSft aTn y o.M fss'.SSSSfJSCSfSS? * ■*** 5S2SSS? MijESgS 

sss m ass S-ws/SS 

SSS^^£“R^5"hirttt- Co«t, is Uktag steps towMds Jj^i a „?ffitS t o£ , US“nd' tosSSS 

King Hassan of Morocco, it pro- KSlErES: 

divided logistic air support to 2 * 1S "*■_ P°. 

help the Zaire Government repel ™any ^£55* n tn C( Snh?*nL Woud 
iL ZSL .*<i JL. be prepared to join the pact. 


Pres. Honphouet-Bolgny 

formulating a more active 
role for France In Africa. 

play a more active role in Africa. 

President Houpbouet-Boigny 
again pulled out all the stops to 
persuade the French President 

s sfvtsraTBSrs 

2i 5CS 

, . UU1U Ulc AlOilG UUVCJUUICliL IDIJCi - - - J _ ~ 

Z&L&&JSrlS£JS ST/ . On a purely west nrcgtai 


£ * - 

UU1 “V “ T-I ....... n ____ fUlUttUVU ICUCID, wuu cue uguuug uuuiw S - — — — 

visit, and it is probable that even t? 0 the Mauretanians and Moroccans some French-speaking- MoSlgm 

the French are not prepared to pffimals. The U.M is cl aimed ^ ^nport of their demands for states, like Mali and Niger, might 

quite as far. as the Ivorian “ Fans, has reruMd to mvolve ^ independent Western Sahara, well hesitate to offend their 

ader would like. *2n2^® J~''fbe former Spanish colony Algerian brothers in the north 

All JUL Houphouet-Boi guy's Vietnam debacle and ts adopting annexed by Mauretania and by joining a- French-inspired 
speeches and interviews over the a pare *y pragmatic attitude to Morocco. security arrangement In this 

past two years have been larded toe Continent s problems as they tjj G French, however, are well respect, it will be interesting to 

with dire warnings against the arise. Britain, though involved in aware that in the case of bigger see what will be the attitude of 

growing Soviet and Cuban working out a Rhodesian settle- conflicts in which either Soviet Guinea, the former French West 
influence on the African conti- ment, is heavily dependent^ on or 0 ther large power interests African colony' with a. “socJalisL" 
nent and with the need- for the U.S. and 1ms virtually aban- are involved, such as the war system, with which France 

to prevent Africa from becoming grand design.” European partners to join some jected visit to Guinea later this 

a battleground between the The theoretical basis of this kind of Euro-African security J ve3T may provide an important 
super-Powers. “grand design” can be summed arrangement clue to the whole enterprise. 

The pressure from France’s up in a few words. Respect for if, for the moment France is * 

African friends and former the sovereignty, independence talking publicly only about a pact wot least it can oeargueatnat 
colonies, together with the need and . territorial integrity of modelled on the Helsinki Euro- any attempt to forge closer 
to satisfy a substantial section of African countries within fron- pean Security and Co-operation defence ties ^between ^ weste rn 
the French electorate which still tiers fixed when they become in- Agreement it is clearly because Europe and Africa could provoke 
yearns for the world role which dependent African states should it is realised in Paris that the even greater intervention by the 
General De Gaulle carved out be left to solve their own pro b- obstacles to a meaningful Soviet Union and Cuba than 
has clearly impressed President 'lems but, if their security and mutual defence pact with inde- hitherto and thus increase the 
Giscard. D’Estaing. Elected to the independence is threatened, pendent African countries are already great risks that Africa 
Presidency in *1974 without a logistic or military, aid should be still enormous, if not insur- will become a battleground be- 
clearly-defined foreign policy and provided if specifically requested mountable. tween East and West, 

Eastern Times, 68 Fleet Street, London EC4 ELL Telephone: 01-353 7262Telex: 8814735 Eastim. Cables: ‘Eastimes’. 

Fukuda admits 
some economic 
policy failures 

Prime Minister Taken Fukuda 
admitted the failure of some of 
bis economic policies for the first 
time yesterday, acknowledging 
that he never expected Japan’s 
balance of payments surplus to 
be so large, Reuter reports from 
Tokyo. ‘ 

"I am sorry to the Japanese 
people and foreign countries for 
such a situation,” he told a 
plenary session of the Lower 
House of Parliament, saying 
that the domestic economy had 
failed to pick up and Imports had 
not increased. Last year’s current 
account surplus., announced by 
the Finance- Ministry on Monday, 
reached a record $H.15bn. 

Meanwhile, Japanese Govern- 
ment spokesmen regretted the 
'decision by. the EEC to impose 
anti-dumping . duties on certain 
iron and steel products imported 
from Japan end six other 

Soviet arms airlift 

A big Soviet airlift into Aden 
— reported to be carrying arms 
for transhipment to Ethiopia — has 
virtually ended, aviation sources 
said here yesterday, Reuter 
reports from Bahrein. 

It was running at one plane 
a day last month, but only three 
big Antonov transports in the 
Aeroflot colours have taken the 
route over the Gulf to the South 
Yemeni capital this month, the 
sources said. The last was on 
January !».' - 

Harar defence 

Ethiopia said the people of Harar, 
the mountain headquarters of 
Government troops in the Ogaden, 
had asked to take over defence 
duties to enable regular troops to 
mount **a fuH-scaJe counter- 
attack " against Somali' forces— 
Somali forces, bad claimed that 
they had repulsed an Ethiopian 
counter-offensive and were fight- 
ing in the streets of Harar, Reuter 
reports from Nairobi. 

UAE spending 

The United Arab Emirates 
federal government plans to 
spend 10.5bn. dirhams i£L4bn.) 
this year compared with last 
year’s budget of 13bn. dirhams 
(I1.7bn_) according to the semi- 
official newspaper al-Ittihad, 
Reuter reported. 

Sheikh Sultan Bin Mohammed 
al-Qasimi, chairman of the higher 
committee for the budget, who is 
also ruler of Sharjah, said the 
proposed budget would contain 
measures to stimulate the UAE 

Bhutto refusal 

Mr. Zulflkar All Bhutto, the for- 
mer Pakistani Prime Minister, re- 
fused to testify in his defence 
when questioned about events 
lea ding to the ambush of a politi- 
cal rival three years ago, Reuter 
reports from Lahore. He said he 
would answer questions dealing 
only with the reasons for the trial, 
why a case was “fabricated” 
against him, and his lack of con' 
fidence in obtaining a fair trial 

Students freed 

The Indonesian Government has 
released a number of students 
arrested- last. Friday i n an army 
crackdown on student grouns 
opposing President Suharto’s re- 
election next March, informed 
sources said yesterday, Reuter 
reports from Jakarta. 

China , tour ends 

French Prime Minister Rav. 
mond Bure left Shanghai for 
^orne last night after a Bv«wiay i 
visit to Ghana during which he. 
sagned a five-year scientific and 
technical co-operation agri 
Reuter reports from 

SSf*-; 5 e . hatl °n iitor- 

natiomti affairs and relations he. 
tween France and China Wit*. 
Commumst Party Chairman W 

West Bengal Government 
raises quarrel with Delhi 


THE MARXIST Government of 
West Bengal is heading for a 
confrontation with the Janata 
Party Central Government over 
the issue of State autonomy, with 
possibly serious implications for 
relations between New Delhi 
and the States and for the infor- 
mal alliance between the 
Marxists and the Janata Party. 

. The confrontation has built up 
following the blunt refusal of 
Mr. Morarji Desai, the Prime 
Minister, to discuss the question 
of greater State autonomy at a 
conference of all Chief Ministers. 
The West Bengal Government 
has retaliated by taking the 
initiative in calling such a con- 
ference, the subject of which is 
greater financial powers for the 

The response to the Initiative 
remains to be seen. Many of the 
other States are ruled by the 
Janata Party and more will be 
after elections in six southern 
and eastern States next month. 

NEW DELHI, Jan. 24. 

But it is known that some of the 
Janata-ruled States are also 
worked up about the issue. West 
Bengal's Finance Minister, Dr. 
Asbok Mitra, claims the Janata- 
ruled Government of Gujarat 
supports him and has indepen- 
dently sent a memorandum on 
the subject to the Prime Minister. 

Dr. Mitra has said that the pro- 
posed conference will discus'! 
not only the “financial relation- 
ship” between the central and 
state governments but also llie 
“political relationship.” since 
the latter bad been eroded by 
amendments to the constitution 
by Mrs. Indira GandbL 
Reuter reports from New Delhi: 
Bombay, India’s second largest 
city, was at a virtual standstill 
to-day when about 7m. workers 
in the western state of Maharash- 
tra went on a 24-hour strike. 

The strike was called by 
national trade unions in support 
oF 'a 42-d3y strike hy state and 
local government employees de- 
manding more pay. 

! H 

■ 1 

v. u 

in 4 

. . i 

. i 

China ‘needs modern weapons’ 


PEKING RADIO, quoting China's 
baentific and Technological 
Commission for National 
Defence, has urged the moderni- 
sation of China’s military system 
m terms which suggest that this 
is still a matter of some dispute. 
This came in an. article attack- 
“tS the opposition of the dis- 
graced Gang of Four” to mili- 
tary modernisation. 

It was “foolish and even 
the article said, to 
think it was possible to use 

broadswords against the modem 
weapons of imperialism and 
social imperialism. In the past 
China s army had been able to 
use weapons seized from ' the 
enemy, but “those days are gone 
for ever. - . 

.. artirie pointed out that 
toe development of modern 
weapons needed time. in. five or 
iu years from now, China’s 
still he inferior to 
of . ber enemies, in spite of 
efforts to modernise, it added. 

■ i 

* i 


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. *1 . _ 

Financial Times Wednesday January 25 1978 


s-1 t .T 

,Si- _ ' . 



EEC must give ‘more details 1 


- . 

-..-tSVENTBEN industrialised 
have either tabled or 
i r* about, to present, their- negoti- 
':J mug offers for -the final phases 
the Tokyo. Round of inter- 
, rational trade talks in Geneva, 
' Vs=jr. Alonzo McDonald, the chief 
v i ) J S. negotiator, said' to-day. 
j.Z? The countries — -the U.S., the 
!jv,.SC Nine.- Japan, Canada, 
i-orway, Sweden, Finland, 
. ’ ri User I and and Austria — 

count fDr almost two thirds of 
jrld trade. 

. Mr. McDonald told journalists, 
iwevef. that the EEC would 
tve to provide a far more 
.'tailed offer to. permit real 
•gotiations to proceed. The U.S. 
as very anxious, that the Corn- 
unity should do so in the next 
■ur to six weeks: 

The U.S. document, tabled yes- 
.rday, is a 500-page computer 
:int-out listing each industrial 
riff heading -and 'details of 
■*ery American offer In the agrt- 
iltural and non-tariff fields, 
ipan has tabled a similar docu- 

GENEVA, Jan. 24. 

ment which -Mr/ - McDonald 
praised as a “superb professional 
piece dI work." • 

.The Community's offer runs to 
only .12 pages and '.s limited to 
outlining the broad principles 
which wOl govern the EEC’s con- 
duct in the negotiations. This is 
partly because . the . Council of 
Ministers finally approved the 
Com mission’s negotiating man- 
date only last Tuesday: 

Mr. McDonald said he accepted 
the Community's good .faith, but 
made it clear that the U.S. ex- 
pected ' a similar document to 
-those of America and Japan as 
soon as possible. 

The American offer provided 
for an average weighted indus- 
trial tariff cut of about 46 per 
cent, Mr. McDonald, said. On 
Sl5bn--worth of trade— one-third 
of U.S. imports in 1376— tariffs 
woul dbe eliminated altogether. 
The average reduction an. indus- 
trial imports from the . EEC 
would be nearer 50 per cent. 

If - the offer was carried 
through, the average weighted 
U.S. tariff would be reduced 
from 7.9 per cent to about 45 
per cent, he said. About 16 per 
cent of American imports would 
be excepted from the cuts to 
some degree. Only about half 
that amount would be excluded. 
No individual industry had been 
left untonched. 

The Community is offering a 
tariff cut of about 40 per cent, 
with no exceptions. Japan's 
offer works out at about 42 per 
cent., with items such as cer tain 
textiles, non-ferrous metals and 
chemicals excepted. 

Mr. McDonald said the U5. 
had made a " very attractive and 
constructive offer" on agricul- 
tural products; It was proposing 
a weighted average tariff cm of 
about 36 per cent on the 200 
items on which ' other countries 
had requested action. There were 
only 12 cases in which it had 
not responded to a request from 
a principal supplier. 

Australia in export curb row 

Australia called together dip- 
•mats of the European Econo- 
iic Community to-day to pro- 
*st strong]? against curbs on 
us trail an exports; 

Mr. Vic Garland, the acting 
Inister for Trade and 
esources, warned beads of nine 
EC missions here that an agree- 
lent last year between Prime 
bolster Malcolm Fraser and Mr. 
oy Jenkins, president of the 
EC Commission, to improve 

trade* links could be- 'jeopardy. 

At the same time, Mr. Garland 
told them he was ready, to .visit 
Brussels “ at any time " to 
advance trade and commercial 
relations, a statement. -.issued 
later said. • > - 

. In the statement, Mr. Garland 
singled out restrictions on, beef, 
steel, cereals and dairy products. 
This foliows similar criticism on 
steel by Prime Minister -Malcolm 
Fraser last week. 

CANBERRA. Jan: 24. - 

Mr. Garland reminded tbe EEC 
that Australia -was an important 
source of its imports and a reli- 
able supplier of raw materials 
including energy sources. 

To-day's meeting, described by 
Government sources as “ unpre- 
cedented " was a prelude to 
planned talks at ministerial level 
between Australia and tbe EEC. 
Reuter -* '.- 

* Mr. Nobuftiko Ushiba, the 
Japanese Minister for* External 
Affairs, said Japan remained 
“strongly sceptical” of European 
attempts to reform GATT safe- 
guard procedures in the Tokyo 
Round of negotiations. 

The EEC wants agreement that 
safeguard* measures can be 
applied selectively against in- 
dividual countries, rather than 
against all countries indiscrimin- 
ately as the rules require. 

Japan has long resisted the 
move for fear that it would be 
the main target of selective 
measures. Mr. Ushiba .told a 
Press conference here last night 
that the Japanese position was 
still “ rather stiff." Many develop- 
ing countries had also expressed 
concern at the proposal during 
yesterday's meeting here to 
launch the final stage of the 
negotiations. . 

The U.K. has pressed strongly 
for tbe change and has indicated 
that j.l can only agree to the 
40 per cent tariff cut which Lhc 
negotiators hero arc aiming at if 
selective application of safe- 
guards is approved. . . 

The U.S. now accepts that 
selective action might be taken 
in certain exceptional cases but 
it is trying to limit its use as 
far as possible so as to prevent 
trade restrictions spreading too 

Mr. Ushiba stressed that the 
July deadline which the main 
participants set themselves was 
for ■” political consensus." The 
complicated process of drafting 
lhc new agreement would enme 
.after that. A lot -of controver- 
sies could still arise then: 

Community attached 


be Commonwealth Secretary 
General, launched a strong attack 
>n Monday night on the record 
<f the rich countries, and 
■specially of the EEC, in the 
eries of talks on international 
rade and development known 
oroadlv as the North-South 

He told a meeting of the 
• -European Atlantic Group in 
; . London the poor countries saw 
the rich as having used four 
rears of talks to secure the 
"commanding heights of the 
world’s economy through re- 
cycling OPEC surpluses." 

Now they seemed to be dictat- 
ing “the parameters of future, 
more limited, consultations- 
fashioned to preserve the status 

Mr. Ratnphai described as' 

“positively dangerous w: the out 
come of these talks -r the 
Conference - on International 
Economic Cooperation in Paris 
UNCTAD IV, multi-lateral . trade 
negotiations, individual, com 
modify agreements, and talks on 
■a Common Fund. \ ■ 

The dangers assumed a special 
significance in relation to. the 
EEC. Poor countries saw the 
positions taken by the Com negotiations os havin 
been settled “ at the lowest level 
of response.’’ 

If rich countries took their cue 
from an- EEC position based on 
its least accommodating member, 
there was no hope .that., the 
dialogue would ever lead 
decisions or action. 

Europe* would - look"' Iflce .. 
“bastion of reaction," .lacking 
the- duiward4ooking philosophy 
it upheld. 

First Soviet ammonia 
supplies arrive in U.S. 


THE FIRST supplies of ammonia 
; roin the Soviet Union to the U.S. 
lave begun to flow as part of the 
nassive 20-year trade agreement 
»etween Occidental Petroleum 
rnd tbe Russian Ministry of 
•'oreign Trade — the biggest deal 
■ver concluded between a govern- 
nent and a private company. 

Under .the terms of the $20bn- 
£10.5bn.> fertiliser deal, which 
/as first signed in - 1973, 
Jccidental will supply to the 
fSSR huge quantities of super- 
hosphoric acid from its plants in 
'lorida. In exchange under a 
arter deal it will receive equiva- 
?nt values of ammonia, urea and 
otash from tbe USSR. The 
nan titles to be exchanged will 
e determined by world price 

Under the agreement the. USSR 
as ban constructing . a new 
triiliser complex at Kuyhyshev, 

large city in the Urals located 
r the Volga River close to major 
is fields. The complex of ten 
lams, was projected to have a 
ital annual capacity of about 4m. 

tonnes of liquid ammonia and Im 
tonnes of urea. 

Under tbe contract Occidental 
will- supply about lm. tons of 
syperphosphoric acid -annually 
to the USSR for 20 years begin- 
ning later this year. 

In exchange it will buy from 
the USSR about 2.1m. tonnes of. 
ammonia annually for a ten-year 
period' from 1978, about 1.5m, 
tonnes of ammonia for the next 
-.ten years and lm. tonnes of urea 
and 1m. tonnes, of potash each 

41 Albright and Wilson is to 
.spend $3. 15 m. at its new 
Louisiana, south-central U.S. 
sodium chlorate plant to Increase 
initial production capacity by 
25 per cent, to 25,000 tons per 
annum by year-end. and to instai 
crystallisation facilities to pro- 
vide sodium chlorate in both 
solid and liquid form. Planned 
ultimate capacity of the new 
SI 65m. plant is 50,000 tonnes 
a" year — marking the- U.K com- 
pany's return to the production 
of industrial chemicals in the 
U.S. after an absence of 20 years. 

peak French car output 


r : 

i ■ C, 

; * 1 

“ '■ -?-** -TV i 

_ PARIS, Jan. 34. 

CH PASSENGER car pro- modest- 22 per cent to 21,608. 
on reached an all-time Peugeot-Citroen, with a com- 
rd of 3.092,439 in 1977. a bined passenger car production 
of. 3.8 per cent over 1976; of 1343,389, took first place in 
ag to the -latest figures the leagne of French manufac- 
, bushed by the French Motor hirers, beating tbe State-owned 
ufacturers Association, Renault company with L259.0S8 
~ oris* at 1,621577, were also b? * short bead. It was. also the 
.7.8 per cent. compared biggest exporter with 686,569 
.'the previous year, while passenger cars sold abroad corn- 
rations Increased by 2.6 per pared with Renault's 634,794. 
to 1.906555. But . tbe nationalised company 

!Tbe* picture was considerably can fairly claim to have been 
bright for the commercial the biggest exporter if vehicles 
•le sector. Though exports of all categories. are included in 
lorries and vans up to 6 tonnes the statistics. * . : 3.4 per cent to 126,793 • Japanese vehicle production 
'registrations increased by rose T tD a record level last -year 
'per- cent. -to 252546, thanks bbckcij mainly by exports, which 

eely to a recovery Of.: the were estimated to have Increased 

-frt'^'.iarKbt in December, production by about. 17 per cent 'over 1976. 
J **. -r the year as a whole fell by The Jarat* Automobile Mauu- 
“ . s* 9 per cent, to 366.763; faeturers Association . said 

But it was the heavy truck 8514,522 car* were produced In 
■ *tor, comprising vehicles of 1977. an increase of nearly 9 pet 
lore than 6 tonnes and ihclud- cent ovet the previous year, 
sw-ir— jj, tractors and buses, which While domestic sales totalled 

jffered most Production last, ju-al ever 4m.. including 41,602 
ear fell bv as much as 8 per rmnoried cars, exports were esti- 
...ent. to 45,679 and registrations mated -at 4.35m., way above the 
til back by 4.4 per rent, to previous record of ; 3.71m. 
4.527. Only‘exports rose — by a established in 1976. it saidl - 

British shippers start U.S. talks . 


conference the talks were con- 
centrated .on four main areas: 
the threat posed to Western 
shipping lines by the enormous 
expansion of the Come con 
meretamt* fleet, world shipbuild- 
ing overcapacity, the* threat of - 
protectionism and the dangers of 
a * 1 unflaterai approach ” to any. 

problems likepolution. 


1 TEAM of British.-, shipping 
^eeutives has started -four days 
•f talks here to underline -British 
fcneora about, developments' la 
4 IS 01,111 shipping and to’ exchange 
flf rK with the' Carter Admlnis- 
Ration. . 

- ** € .^f- A, R‘ Marshall, managihg 

of P & O, tolff a Press 

Victor to 
sell VTRs 
m Europe 

By Charles Smith 

TOK\*0, Jan. 24. 
Intends to export video tape 
recorders to Europe. 

It will establish -a joint 
venture twiih its French dis- 
tributor, Dicorop. specifically 
to market VTRs from April. 
Tbe 'company will be called 
JVC Video France. It will be 
55 per cent, owned by Vielor, 
which plans to sell about 

60.000 units a year in France 
and Monaco. 

' Victor has not yet announced 
plans Tor the UJC., West Ger- 
many or other markets but is 
likely to do so soon. 

Sony Corporation said to-day 
it had no plans to enter the 
European market - yet, 

although it hoped to be selling 
there In tbe spring. 

:T1ms hatT-tnch video cassette 
(ape recorder caught on in 
Japan last year as tbe vehicle 
for what looks like a new con-, 
somer electronics boom. 

Three Japanese companies — 
Sony. Victor and Matsushita — 
produced an estimated 750, IKK) 
sets of which about 400,000 
were exported to the U.S. 

The Japanese companies, 
whose sets retail at about Yen 

250.000 each, appear to have 
a long lead over the rest of 
the world in this area. Rot 
there is intense competition — 
and as ye t no standardisation 
of cassettes — between the Sony 
Betamax VTR system and the 
Victor VHS system. Matsushita 
holds a tirencc from Victor. 

Steel production of industrialised 
nations fell 4.1% last year 


WORLD steel production fell 
0.5 per cent, last year compared 
with 1976, according to prelimi- 
nary figures from the Interna- 
tional Iron and Steel Institute. 

The institute, which repre- 
sents 29- steelmakine countries 
in the West, estimates world 
crude steel output last year was 

673.1m. tonnes compared with 
376.5ra. tonnes in 1976. 

Although sleeJ prodnetion last 
year showed only a small fall 
during the worst trading year 
which steelmakers can remem- 
ber, it is 5 per cent, below the 
record production of 1974. 

The production figures do not 
rellecr the disparities which 
emerged during llie year between 
tbe traditional steel making 
leaders and tbe newly-industri- 
alised nations. 

The industrialised nations, in- 
cluding the steelmakers of 
Western Europe. North America. 
Japan, South Africa and 
Australia, suffered a -1.1 per 
cent, decline in production with 
399.2m. tonnes compared with 
416.2m. tonnes in 1976. 

The developing countries with 
steel industries raised their out- 
put 11.6 per cenL to 42m. tonnes 
compared with 37.6m. tonnes in 
1976. Brazil. South Korea and 
India raised production signifi- 
cantly and did record export 

Production is estimated to have 
risen by 3.3 per cent, in the 




I in 29 IISI Countries 

1 ■ ■ ■ * * ' ■ ■ ■ * 1 1 

_l_l I 1.1 I 1 1 1 I 1 

Comecon countries front 19S.7m. 
tonnes in 197H to 205.3m. tonnes 
last j ear. China and North Korea 

(metric tons m.) 

















W. Germany 
































an* both estuualeil tu have raided 
i heir si cel iimputs more than 10 
per cent, to a cutnhined total uf 
about dri.tim. tonnes. 

Russia is rstiiiiaifd in have 
raised product inn 1.5 per cent. 
(■> M7m. tonnes. 

No ilrauiauc recovery in inter- 
nal steel product inn is ex- 
pected in the next three months 
although there arc sicns in some 
coil nines Thai the recession li.«s 
“ lioHuined mil." The defem-ive 
measures auain-t imports newly 
adopted b> the U.S. and the EEC 
are expected to heln producers 
in those areas increase sales. 

All eyes will be on the deve- 
loping nut ion Meet producers 
this year in sec tf the> can repeat 
their production increases of last 


Start with a Lancia and you can stick with 
the Most Italian Car of all for the rest of your life. 

To cut your teeth on, there's the Beta Spyder 
- with its detachable^ 

Targa top.fold- 

gearbox, all-round independent suspension, servo- 
assisted all-round disc braking, fitted carpets and 
an 18 cu.ft. boot Lots of comfort. Lots of room. 
Lots of excitement. 

Or, if you prefer an estate car, go for the 
Lancia Beta HPE (High Performance Estate). 

It has three doors and up to 42 cubic feet 
of load space. Plus, in the 2000cc model, U5mph 
performance, built-in sun roof as well as all the 
trimmings. There’s also a 1600cc model. 

Beta Spyder. 

back rear window, 5-speed gearbox and all. 

It’ll make you lots of lovely friends (there’s 
even room for two in the back), whether you 
have the 1600 or 2000cc version. 

Bela HPE. 

Finally, for the man ijh 
who wants sheer excitement first and last, there's 
the Beta Monte-Carlo. 

Veiy fast, very beautiful mid-engined sports 
car based on the formula that has won Lancia 
the World Rally Championship four times in the 
last five years. 2 seats. 2 litres. Hard or soft top. 

After the first flush, what could bebetter 
than the Beta Coupe? 

.It’s just as Italian, just as dashing just as 
quick. Also with 2 seats in the back for a couple 
of kids, if you insist A choice of 1300cc, 1600cc or 
2000cc engines. 

BeU Monte-Carlo 

Beta Saloon. 

If you have not yet found the sort of car 
you could drive for therest of yourlife,go and 
see your nearest Lancia dealer. 

Take a test drive. Then talk prices. They’ll 
probably come as a surprise to you. They start at 
£3,292.38“ and end at £5,927.22 
But be warned. 

Once you’ve tried one Lancia, you’ll never 
want to drive anything else. 

When the family gets bigger, don’t despair, 
just graduate to a Beta saloon. With a 3306, 1600 
or 2000cc twin overhead camshaft engine, sipeed 

The most Italian car. 

Lancia (England) Ltd.. Alpcrton. Middlesex. Tel: 01-998 5355 i 24 -hour sales enquiry servicel.. 

huinc Mr nrrnAcr plated IWV Irorn.-P.riaS-kj5rk.-X4j?iS3-BciaCti^-.-i-j.7Wi;i5 liriaSpiJc^-u , i,,.. 

Personal Export: Ifiou arc eligible lopurchosea Lancia frccoE taxc^contact our Export Depa^acnL^^* lhrI ’" jM,id 1 *" ,rk ' l * u '' l:> - ^-‘*-'7- 

Financial 'limes Wednesday January 25 1978 

Copies of this document have been delivered to the Registrar of Companies for registration, each copy having attached to it a copy ot the comenu nieriUonad'and contracts, listed below and of the statements setting exit the adjustments 
made bv the Company's auditors for the purposes of their niporl and giving the reasons for them. 

This document contains particulars given in compliance with the regulations of tiro Council qf Tha Stock Exchange for the purpose of giving information fo the public, with regard to Geers Gross limited ("the Company”)- The dractors 
Collectively and individually accept full responsibly (or the accuracy of the information given and confirm. having made all reasonable enquiries, that to the best of their knowledge and belief than ate no Other tea the omiuton of which would 
make any statement heroin misleading. 

Application has been made to tha Council o! The Stock Exchange for the whole of the share capital of the Company issued and to ha issued to be admitted to the Official List. 


incorporated under the Companies Acts 1948 lo 1967. Registered ip England No. 965226 


- ROBERT GROSS (OS.A.1. CAfltfwa/L 
20 Ormonde Gate; LoodQfi* SW3. 

24A Gunter Grove, London* 5W10- 


Newark House, 9 The Vineyard. Richmond. Surrey. 


It A Guesseos Road. Welwyn Garden City. Hertfordshire. 


*Hlah Rising'. Croft Road, Gonng-on -Thame*, OMwdalw^ 



£650,000 in 6,500,000 ordinary shares of lOp each 

Issued and 
to be issued 
fully paid 

At the close of business on 30th December. 1977 the Company and its present subsidiaries ("the Group”) had outstanding a secured bank overdraft of Sw.F.50,000 (£13,000), 
an unsecured bank overdraft amounting to £88.316. hire purchase commitments of £40,662 and has since conditionally arranged loans of S2.900.000 (£1-51 m) and £700,000 in 
connection with the acquisition of Richard K. Manoff. Inc. ("Manoff"). Apart from the foregoing and inter-company indebtedness and guarantees, neither the Company nor any of its 
subsidiaries had outstanding at 30th December. 1 977 any borrowings or indebted ness in the nature of borrowing, including loan capital, bank overdrafts and liabilities under acceptances 
(other Than normal trade bills) or acceptance credits, mortgages, charges, hire purchase commitments, guarantees or other material contingent liabilities. 

Sw.F. and U.S. s referred to above have been converted at Sw.F.3-81 = £1 and si -92 = £1, being the approximate rates of exchange ruling on 30th December, 1977. Unless 
otherwise slated, U.S.s have been converted into sterling at the rate of SI -95 = £1. 


2,750,000 ordinary shares of 10p each at 41 jp per share- 



Sheppards and Chase 

The ordinary shares of the Company issued and to be issued rank pari passu in all respects except only thatthe 2,750,000 ordinary shares ("the new shares”) now being issued 
will not rank for any dividend in respect of the Company's financial year ended 31 st December, 1 977. . - 

The issue of the new shares is subject to the acquisition of Manoff becoming unconditional and to the admission to listing by the Council of The Stock Exchange of the whole 
of the share capital of the Company issued and to be issued. This document is prepared on the basis that, where the context permits, the Company hss completed the acquisition of 
Manoff, which is expected to take place on 31st January, 1978. . _ 



' SoBdtor. A.T.I.U 
. 7 Soho Street; 

" Soho Square. 

. ■ London. W1 V 6QU. 



27 Regent Street. 

- London, SW1Y4UB 

88 Brook Street 
. London, W1 A 4NF. 



Finlay House. 

10-14 West Nile Street, 
Glasgow, G1 2PP. 


Ely Place. 

London, EC1 N 6TE. 

Blackfriars House, 

. 19 New Bridge Street, 

London, EC4V 6BY. 


griffin stone, MOSCROP & CO, 

Chartered Accountants. 

21 Manchester Sawtre. 
London. W1 M SAP. 



Certified Public Accountants, 

1345 Avenue of the America*. 
New York. N.Y. 10019,. 



Clements House, 
Gresham Street. . . 
London. EC3V 7AU 
and The Stock Exchange. 




Granby House, 

S5 Southwark Street. 

London, SE I OJA. 


II was announced on 6th January. 1978 thatthe Company had condiuonallv agreed to acquire with effect 
from 1 M December. 1 977 the whole of the common slock of Manoff for S3.500.600. In view of the sue of this 
transaction the directors of the Company requested the Council of The Stock Exchange temporarily to suspend 
the listing of its ordinary shares an 22nd December, 1977. A circular explaining the transaction and the method of 
financing the acquisition was sent to shareholders on 6tti January, 1978 and approval of the transaction and of 
the inciuaso m the Company s nuihonsed share capital was obtained at an Extraordinary General Meeting on 24:h 
January. 1978. Full details of the method of funding the net cost of $2,900,000 lor the acquisition of ManoH, 
which include the issue of 2.760.000 new shares at 41 Jp each, are set out below under the heading “Further 
in*ormation on Manoff". 

The effect of the acquisition and the financing arrangements on the Company is set out below In the 
pro forma statement of combined net assets which is based on the audited accounts of Manoff at 31 st August. 
1977 and the adjusted audited account, ol the Company at 30th September, 1977. 

Geers Grose 

The Company incorporated as a private company on 31 si October, 1 969 and on 6lh Novamber, 1 969 
it acquired the whole ol the issued share capital of Goars Gross Advertising Limited ("GGA '). incorporated on 
33'Ji September. 1 964 to carry on business as an advertising consultancy founded by Mr. R. E. Geers and Mr. R, 
Gross In November. 1969. 40 per cent, of tlw Company's then issued share capital was offered for sale to the 
public and ihe whole ot its share capital was listed on The Stock Exchange. The Company now acts as a holding 
company lor GGA which carries on the original advertising business, for Browne's Advertising Limited 
| "Browne's"!, acquired in 1974 and through Geers Gross Inc {"GGI"). for Menoff. 

GGA still retains its hist major account, Homeprtde Flour (Spillers Limned) obtained in 1 965. Over the 
last 12 years. GGA has followed a policy of acting for large established clients, particularly those involved In the 
manufacture and distribution of consumer products, where advertising plays a major role. Over the years, while 
there has boon a steady growth in the client list, existing clients have also increased tha number of brands handled. 
Demis of drams end brands are lislod below. 

The original advertising agency bustness now carried on by Browne's was founded in 1372. Since its 
acquisition in 1974. its business has been rationalised to follow the policy adopted by the Group, although 
ihe majority ot ns business is concerned with newspaper advertising whilst GGA is mainly concerned with 
television advertising 

* No smgle client accounts lor more than 15 per cent, of Group turnover. 


The business now carried on by Manoff was founded in 1 956 by Mr. Richard K. Manoff and is well known 
v.ithm the United States edverlising community for effective marketing, media and creative service. 

like GGA. Manoff concentrates on the advertising of package goods and other consumer products and 
has a percentage of biiimga tlwouflh television. It has a short but high quality client list (see below) with a 
h.jh degree of client loyalty and strong financial management. One major client Woich Foods Inc*, has been a 
client tor 21 years and several other important clients for ten years'or more. 

In the five years ended 30th November, 1977 Manoll has almost doubled its turnover to over S30m. and 
much of this growth hns come from additional assignments from existing clients. Giowth has been evenly 
mstribuied and in tip year ended 30th November, 1977 no single client represented more than 17 per cent, of 
total turnover. 

Geors Gross 

Mr R. Gross, aged 47 years, who is Chairman and Managing Oirector, was Ihe co-founder of the business 
in 19W having previously hold si-nior creative posts in New York and London. 

Mr. R £. Geers, aged 43 years, was the other co-founder of the business end is currently a non-executive 

Mr. R. VY. PciliicL. iiqeri 48 years, joined the Company as a director in 1973 and is in charge of Chert 
Eavia". Ipr nit- Group, having spent all his previous working life in advertising, much of it in senior creative and 
m-inagemi'ni rokt. 

Mi R. E. L.mgndae. aged 44 years, joined GGA as Head of Media Services in 1971 after a number of years 
with 1 coding London .tgoncips He became a director of Ihe Company in 1974. 

Mr. T C. R. Myers aged 40 years, has been an executive with the Group since 1973 and was appointed 
Managing Director ol Browne's in January. 1 977. He became a director of the Company in Jufy. 1977. 

In both GGA and Blow no's there is a highly expenanced and able management and executive teem. The 
Group has .i l w at s pursued duality ol staffing predominantly with senior, experienced perennnaL operating within 

0 lightly orgnru/pd structure and with good lines of communication. There ere approximately 85 full-time employ- 
ee-. and turnov-ci among key staff is low. 


Mr. Riclhtrd K. Manoff is 61 veers old and prior to 1956 held senior executive positions with a maior 
L'nirec! Stains advoriismg agency its well uj with a major food marketing company. He is Chairman and Chief 
E>--luii»c Officer and will, on completion af tha acquisition of Manoff. nnter into an employment agreement as 
saci. Aiih salary of 5300.000 for seven voars with a further period of eighr years as Chairman 
-.1 !£.E>l* 0 pur annum Further do tall 5 of the employment agreement for Mr. R. K. Manoff are set out under 
*'tl. tut or v end limpidl Information" below 

Mi E L Wax is 40 voats old and as President and Chinf Operating Officer is responsible lor ihe day to day 
rm-ning ol the busmen He loinrd Manoff in August, 1977 having pre-.iuusiv spent 14 years with one of ihe 
wcii, ft''. Lit or-. I .-iilverlisiun agonen-s 

Mi j h LdvhcnicL. .Kind 02 years, is Executive Vice-President and Treasurer and has been with Manoff 
for n err t'nn 19, 

Mr 1 Warren, aqed 38 tears. ■? Creative Director and a Vice-President and has been with Manoff far nearly 
tv..’ ttv. tuning spent Ins workm-t file with other lauding advertising agencies. 

Mi -j Piavuukos. ..qcd 41 year:., is an Exccutnm Yura- President in charge of Account Services and has 
be-. is »-.iS!> M.iiifil! tor ■ ■n-i It .o.irs 

•tt i-- L-tei.- complfiiun Mr J. H. L.i'Jiemcfc will enter into an employment ogrennenr with Manoff as 
f'ijo 1%: t-ob-'.-arv. 1y7B. terminable cm 31st December. 1387, and Mr t. L. Wax. Mr 1. Warren and Mr. S. 
Pi... Oiifco!. vvf i rnir-r into time vn-ir employment agreements with Manoff Nona ol these employment agreements 
v.i’l riocufi- lor opi inn .01 similar nghu. to purchase stocl of Manoll and the existing share purchase agreements 
and sharp option plan will to cancelled 

M.ncii enipio.s appro. i mainly 100 people and in addition ta thoso mentioned above, lias six senior 
\ icc-Pic-Jdc-nt-r. Tuintwi i ot t-vecutiw staff has been consistently lower Ilian the industry average. 

The- Board of ManoU will consist of Mr R. K Manoff, Mi. fl. Gross. Mr. E. L. Wax. Mr. J H. Lachenick. 
Mr M. A Heido-i and Mi R. W. Pctluch. Tiw Board of GGf will consist of Mr. R. Gross. Mr. M. A. Beidon and 
Mi 3 L Hiohic.-inun. Mr M A Bi-rdon K a partner at Ferro. Borden b Company. Cerfihed Puoiic Accountants 
.mo r i>- Company'*. U S. financial advi-.-r. Mr. S. L Highk-yman is a partner ol the Company's U.S. attorneys. 
CouUcri Brotlu-rs. 


The- Company and GGA operate from modern leasehold promises at 7 Soho Street. London, WTV 6QU 

01 some 7.E.C0 miu.i'*- Ii?»-i and at the adjoining building, 3. 5 Soho Street.' of sortie 8,100 square feel at exclusive rent.iU. of l'SI sOO and l 57.500 respectively under leases expiring in 2008 wnh rani reviews ever/ 
ii.c years Horn 2nh March 1978 Browne's operates from premises at 117 Piccadilly. London, W1 of 
appro* itnaMv 11.000 square fact at an exclusive annual rental of C5C-,500 under a lease expiring in 1983 
withniri ii-nt mrv. Part o( the premises at 3, 5 Soho Street end at 117 Piccadilly are sub-let producing rents 
rc.-m-ibk- of ,ippio*uiiotclv 1 100.000 per annum. The Group also has a lease until 1 980 of 1.350 square feet at 

Richmond Buildings. Doan Street, London. Wt all of-whichi, sub-let at a profit rental of £6.500 DC r annum 
without ram review The office-, at 7 Saho Short aro equipped to a high standard and include a modern cinema 
lor audio and v&ual prcsnni.inons to clicrm,. 

Manoff operates from modarn laasolidd offices ol some 26.000 square feet at 845 Third Avenue. Naw 
Yn*. at an annual rental, including an allowance lor escalation costs ol 6240,000 under a lease terminating 
or ilM August. 1383 and hai»o«cuwd a lease lor soma additional 1,600 square feet ai the same oddrwsaian 
annual rental ot sifl.SOO with an effective dale commencing when that space has been “substantially cbmpiatad" 
and a termination dato of 31 si August, 1 933. 


Geors Gross 

Th? .i(j|U.*>!cd audited canaoiidaiod profit and loss accounts and balannr sheets of the Company for the 
live years and mn- monrhx ended 30lh September. 1977 are set out in the Accountants Report cn the Company 


In each of the five vaari ended 31 St Ddcember. 1978 turnover has increased With the extension of the 
hu&tnr-ss haidli-d bv Hie Group. The large incrcdse in turnover in 1 975 reflect* the inclusion or Browne's for a 
Vi Group pro In a before taxation have also increjied each year except in 1974 when overheads increased 
c-v a result ot us move to Us present premise* m November, 1973. F 


The profit and loss accounts and balance sheets of Manoff for the five years and nine morths ended 
31 s: Auaust 1977 are set out mi the Accountants Ropor; on Manoff below. 

During ri.-j tivu yiurs mdod 3Dtti November. 1976 tha grains before taxation expanded in each year 
c-tep: ter the scd? ended 30th Novomtter. 1974 whan income waa mainly atfecrod by a reduction in advertising 
rvpciidcu'c Uv clients ac a result o! Iho general downiutn m the United States economy. The expansion in 
commivSion and toe income over the pc nod arose from increased eipendirurc bv existing clients largch- from 
jr.t-ocucinq nnw products, from new diontt and from incraaM* in media rates. During this period no dier.t was 
iqr: >> reprrsunied more than 10 percent, of total turnover. 

Tire :i-sjl!s of Manoff lor the nine months entil’d 51st August. 1977 reflect Ihe seasonal nature cf the 
advcrtismo expenditure a! some of ns most substantiej diann which lends to be concentrated in the las: quarter 
o! iis financial ycai, wh.ah is also ihe case lot Geers Gross. 

Goers Gross 

Turnover (or Ihe year ended 31 si December, 1 977 is expected to amount fo £8.300.000 1 1 976 :-£8.61 9.0001. 
the oiffanraco bmntt principally duo to the sale Of Brownc'a Recruitment Diviaion. which was sold with effect 
Item let January, 1977. 

Cn ilra bAsras and assumptions set out Inlaw, the directors estimate that, in the absence of unforeseen 
ci'cum: lances, profits before taxation for rhe year ended 31 sr December, 1977 will amount to not less than 
12SO.OOC. which compares with £275.000 in ItlO previous rear 

Th? directors intend to rocommond a final dividend of 1-71036p per shore, tha maximum permissible 
under current legislation, pavablo. July. 1973. making a total lor the year ended 31st December, 1977 of 
2-52E 36p per snare payable on »k- issued share copiial other tlwn the new shares. 

Manoff ’ L 

On the basis of the audited results of Manoff tor tha nine months ended 31st August, 1977 and of lhs 
estimated lo.ulis lor ihe ffuuo months ended 30lh November. 1977. th? directors of Manoff estimate that cam- 
mi„ 5 ;n and tec income will aniount to sd 700.000 and :fur the profit before profit sharing, saff bonus ana 
tJxat'vmoi -Mono!! will amount to not lass than 61 .121 .000 (C575.000) as compared with SI .177.000 (£604.000) 
1c: the previous year. Although commission and fac income increased by IS per cent during 1977, tins wn* 
ohsc'L-'.-d b- i xira payroll costs arcing Irom salary increases and trom additional statf taken on to handle Ihe 
«..i.-a turnover estimated for 1978* 

Geers Gross 

Antony Gibbs 
Financial Services 

Baxters Foods 

New Product Development 

Mum Deodorants 
Alpha Keri Skin Products 
Angiers Junior Medicines 
New Product Development 

British Printing 
Partwork Publications 

Anderson Strathclyde 

Blackwood Hodge 
Earthmoving Equipment 
Booker McConnell 
Health Foods 


Electrical Appliances 



East Midlands Electricity 
Public Uulitv 
Ellerman Lines 

American Cyans mid Company 

Brack Clean Rinse 

Miss Brack Lasting Hold Hsir Spray 

Brack Shampoo-In Hau Color 

Brown-Forman Distillers 
Ambassador Scorch Whisky 
Boila. Celia and' Cruse Wines 
Marrell Cognacs 
Noilly Prat Vermouths 

Bumble Bee Seafoods 


Bumble Bee Tuna and Salmon 
Coral Tuna 

Cargill Incorporated 
' Paramount Broilers 
Honeysuckle White Turkeys 



Cadbury Schweppes 
Ty-phoo Tea 
Olivers Jellies 
fee Pops 

Chocolate Fingers - 
Chocolate Animals 
Cadbury's Gingormen 
New Product Development 

English Butter Marketing 
Country Lrfs Buffer 

Scottish and Newcastle 
Macklnlay’s Whisky . . 
Gfisweilqr Wines 
Windjammer Rum 
Dow's Port 

Isle of Jura Malt Whisky 
Piper Haid seek Champagne 

..Edmund Nutt nil , 

Guest Keen & Nettlefold 

IPC Magazines 

Lombard North Centra! 

Management Dynamics 
Computer Service 

National Magazines 

Nicholas Laboratories 

North Eastern Electricity 

Public Utility 


Full Photo Film U.S.A., Inc. 

All amaiour stiff film products 
Still cameras and accessories 
Colour paper 

Kraft Inc. 

Breakstone Cottage Cheese and 
Sour Cream 

Breakstone Salad Dressing 
Temp-Tec Whipped Cream Cheese 

Luden’s Incorporated 
Cough Drops, Fifth Avenue and 
other candy bars 

National Broadcasting Co. 

NBC Radio Dtvtalpn 

National Car Rental System, 

Car Rental Division 

Ken no most 
Home pride Flour 
Harvest Gold Flour 
Hqmepride Coot ft Cook 
Homaprids Soya Menu 
Tyne Brand Meat Products 
Naw Product Development 

United Biscuits 
K_P. Nuts 
K.P. Crisps 

Now Product Development 

W. D.frH/O. Wills 
Embassy American Cigarettes 
Embassy Slim Psnateilas 
President Cigarettes 
New Product Development 

Wimpy International 
Fast Food Chain 

Pearl Assurance 
Life Assurance ■ 

Pitstop , . 
Automotive Repair 

Powell Duffryn 
Freight Transport 

Russet I Hobbs 
Kettles and Toostar* 

J. W. Spear 

Electrical Firee 

Swef Foods 
Packaged Straps 

' Carpets 

SCM Corporation 
SCM Business Equipment 

Procior-Silex Household 
Appliances . 

Smith-Corona Typewriters 
Welch Foods I no. 

Welch's Grape Juices. Tomato 
Juice end Fruit Drinks 
Welch's Jams; Jellies and 

Welch's Sparkling Sodas 
Welch's Frozen Doughnuts 
Public Service Clients 
Department ol Slate (A.I.D.) 
Food & Drug Administration 
Population Campaign 


During 1977. the Group obtained an encouraging flow of now business. New clients included Booker 
McConnell Health Foods. Blackwood Hodge, an assignment from EUarman Lines Brewing Division and the fast 
food chain. Wimpy In tor national. Thera warealso maior new products Irom existing d lento, including Soya Menu 
and Tyne Brand Products from Spillers. Gingormen Biscuits from Cadbury Schweppes. Dow's Port and. Piper 
Hcidseck Champagne from Scottish end Newcasde. President Cigarettes from Wills and KF Crisps from U ruled 

As a result the directors forecast that in the absence of unforeseen circumstances arid on the basis of 
The assumptions set out bo'ow. turnover wUI rise lo C9.B00.000 Jrom £8.300,000 estimated for 1977. and that 
prohls before taxation of the Group as at present constituted for tha year ending- 31st December, 1978 will 
amount to not less than £350.000. 

ManofFc accounting period will be extended to coincide with the accounting data of the Comjsany and 


On the basts ol the assumptions set out below, the directors of Manoff forecast that in the absence ot 
unforeseen circumstances, profit before management bonus, employee profit sharing end taxation for the thirteen 
months ending 31 si December. 1978 will amount to not less than 61 ,600,000. of which 6900,000 ( £462.0001 
will be attributable to the Company. This Improved performance reflects the substantial Increases in advertising 
expenditure projected by several major clients for 197B. 

On the basis of these profit forecast of tha Company and of Manoff and after allowing for the estimated 
Imerosi cost of the sterling and eurodollar loans of £89.000 referred to below and additional directors' com- 
mission ansinp in connection with the expansion of the Group, the directors forecast that the profits before 
taxation tar the year ending 31st December. 1078 wHI amount to not less than £685,000. 

On this basts and assuming an effective U K. corporation tax rate of 58 per cent, the directors intend to. 
recommend dividends totalling 3p per shore on The increased capital payable da w 1 ip in November. 1978 and 
as to the balance In July, 1970. The allobation of such profits before taxation would be 83 follows,- assumrtig 
no change in the current rate of associated Dx credit 

£000 £000 

Group profit before taxation - — 685 

iejs. Corporation Tax .. .. . .. .. .. .. 170 

Foreign Tax .. .. .. .. 217 

Profit after tax attributable to shareholders . - 
Cost of annual dividends totalling 3p pof share on 5.351,71 6 
ordinary shares 

Retained earnings 

Earnings per share on weighted average of 5,122,549 

ordinary shares 5-82o 

At the issue price of 41 ? p pur share ihe price earnings multiple would be 7-1 based on earnings per sham 
of 5'82p shown, above. The net dividend of 3p P«r shore would be covered 1 -85 time* by profit after taxation, 
and together with the associated tax creditor 34/86 Uis would result in a gross dividend yield of 10-95 per OtnU 
at iho issue price. 


The acquisition of ManofF represents one. of die largest expansionary 'moves ever made by a British 
advertising agency imo tho United States. It provides tha Group with a major foothold in the world's largest 
advertising market through a highly reputable, progressive and successful agency, it will enable the Group to 
offer an enhanced service to a number of its United Kingdom clients who ere actively seeking or already dove loping 
United States markets and will open up maior new sources of .business for Manoff by enabling it id service 
United State? clients with United Kingdom interests. The continuing Opportunities to exchange top -lave! adver- 
tising and management experience and expertise will provide an important impetus to the officrency, growth 
and profitability of the enlarged Group. : * 


The following t$ a copy al a report received fwp ■Griffin Stone, Moscrop & Co- the auditors of the 
Company;— ' 

24th January. 1978 

The Directors, » • 

Genre Gross Limited. ’ 

Gentlemen. - - 

We have examined the audited accounts of VOW Company and its subsidiaries ["the Group") for the five 
vtiara and nine months ended 30tft Sentfember, 1977, which have been prepared using the historical cost 
convention adjusted by revaluations of short leosehoida at 31 at Dtfcember. 1973 and 31st December, 1974. We 
have made such adjustments as we have considered necessary- ... , . . . . .... 

The accounts tnelude the results of Thomas Browne Group Limited and its subfedieriB* ( the Browne 
Group"), acquired with effect from 1 st November, 1974. 

No audited accounts have been prepared since 30th September, 1977. 

ACCOU ("j i ^ TOeaocounts result from the consolidation of the accounts of the Company and Its subsidiaries, end eke 

ail mode up to the same date as that of the Company. . 

(b) Ordinary advertising is included in turnover at invoice values charged to clients. In accordance with 
the industry's standard practice advertising fees’ are included in turnover at sir and two -thuds tlmasthe fees At 
order to arrive at a notional advertising turnover on which 16 par cam is normally corned. 

(c) Group profit is calculated after charging hire purchase interest proportiogato to the length of each 

agreement f ... , 

(d) The short leaseholds are amortised from the date of purchase or revaluation by ten equal anntfU 
instalments or over the bnexplred period of the leases where less. 

The equipment and vehicles have been depredated on the straight line basis so as to write off each asset 
over its estimated effective useful working life. 

<e) Goodwill arising on consolidation is not written off. GoodwfH m subsidiary companies is written oft tty 
ten equal annual Instafmanlsfrem the date of purchase by the Group. 

(f) Work in progress is valued at cosl Cost comprises materials, labour and overheads related to producbetu 

(g) The Group does not provide far deferred taxation except in respect of timing differences which a fra 
-likely to give rise to a tax liability in the short term in accordance with Exposure Draft IS of the Accounting 
Standards Committee. 

(h) Current account balances in Swiss francs have been converted into sterling at the rates prevailing at 
the endDftheresperaivepwiods. 

Profit and loss accounts 

Notes 1972 

Years ended 31 st December, 
1973 1974 1975 

9 month# 



Profit before taxation .. 1 

Taxation .. .. ..2 

Profit after taxation .. .. 

Extraordinary items .. ..3 

Dividends paid (M proposed. i . 4 
Transform (from) reserves .. 

Balance sheets 

31st December, 
1973 1974 



Fixed assets 

5 ■ 24 


Goodwill and preliminary 


6 38 

. 31 

Associated company .. 


' — 

Deferred asset — 

A.C.T. recoverable .. 



Currant assets : 

Work in progress . . 



Investments.. .. 

7 79 

Debtors .. ' .. 







966 - 

Deduct: Current liabilities 

Bank overdrafts .. 

8 — 








Dividends .. 







Deferred consideration .. 9 

Deferred taxation .. 10 

Represented by 
Share capital 

-Minority interests 

1. Profit before taxation « shown 
after charging : 

Directors' remuneration ., 
Auditors' remuneration .. 
Hire of equipment- 
Unquoicd investment 
written off 
Depreciation and 
amortisation .. „ 

2. Taxation: 

Based on profit for the 

Corporation tax .. 
Deferred taxation „ 

3. Extraordinary items) 


Years ended 31st December. 

1973 1974 197B 


9 months 

£000 . 










. 68 










5 - 

' — 




- . 4 

’ . . . — ’ " 



• 35 


71 - 

- 67 







' 81 





' W 










Goodwill and preliminary expenses 

written off 

Prevision on quoted investments .1 
Reorganisation expenses (compensation 

ieHet 0m,ar eXOtU, ‘ VcaJ *•» xa «« i '» n 

1 077 V 5S,* BdBd 3 ™ BMombor. S Swd? - 

JW3 jaw _ms' 197fl sJSSr; 

£ooo £ooo fooo -£ooo tooo "7553 ' 
If J 1 7.7 k. 

4 D yidend — ^ If 31 73 17 IS 

of E=^0O)inihs ySSStof : Sl^ySSmtar??^^ 8 r °' ,,t8d crcdils with ^ caption of a gross dividend 
the interim *vtendo^ 30th Sopfem bet 1972 raptert* ’ 

JS* J^jsr-ro. *2 »£■; 

5. Fixed assets comprise; £0 °° £ °°° C00 ° £000 £000 £000 

5. Fixed assets comprise: 

Short leaseholds 
Equipment and vehicles V. 

320 is? 

’86 179 

Preliminary expenses 

” 9«'ng on consolidation ” 

<S£’ S dig's «™p ani ^ 

7. Investments: 

375 3ft 



74 . 









' ‘40 • 




"'S ‘ 

»nd 31 st Deceniber. 1 9 7 5* u n 5 U 0 ’ 972 ° U0 * ed " waatmanTB Oic £4£00 at 31a^K0rabw;1974 
8- Bank ovordra its: " " 

“SwKtss m .m 

fci .. 

Financfal Times .Wednesday Januaiy 25 1978 

9. Deterred consideration; 

Tho £40,000 al 31 st December. '1874 represented the amount due in respect of the aequfeHrofl Of the 
Browns Group which did not have io be paid until 1st DocembBr„197& 

ID. Deferred taxation: 

Had provisions boon made in respect of long-term timing differences than the provisions would have been : 

At 57st December. 1972 

fn respect of 
Jong-temi timing 

In respect of 
•hort-term dining 


£000 . 










1974 .. 



1975 .. .. 



■ 82 








A t30ih September. 13 77 

11. Share capital : 

The authorised share capital to 3rd Doctmbw. 1974 was £150.000; At that data h was increased to . 
£103 000 and it was further increased to £360,000 oh 30th April, 1976. 

1 The issued share capital consists wholly of ordinary shares, of 10p each. It was increased by capitalisation 

issues of 1 for 10 In the year ended 31st December, 1973 and 1 for 1 In the year ended 31st December. 1878. 
In the y-a-s ended 31 st- December, 1974 and 31st December, 1975 shares were Issued in connection with ths 
^acquisition of the Browne Group. 

12. Reserves comprise: 

Available for distribution : 

Undistributed profits brought forward 
Transfer io (from) reserves .. 

Undistributed profits carried forward, . 

Nil available (or distribution ; 

Brought forward 

Share premium account 
Adjustments relating to the Browne 


Surplus (deficit) on revaluation 
Capitalisation of shares 

Carried forward .. 

The credit adjustments relating to tha Browne Group arise hi connection with taxation and other 
provisions written bach after purchase ... 

33 st Dacsmber, 

1372 ’ 


: 1374 























100 ■ 





. 11 




■ “ 



















' 153 

• 155 

. 26 








T=T -i 


C M 

Cff 1 ■■ 



9. Share option plan 

Manoff operates a share option plan under which options are granted to employees far StVB purchase of 
shares. Such options usually run for four yean bom data of grant and ant exercisable in equal instalments. 
Lapsed (rations may. ba available for. rag ranting to other employees- At 31st August, 1977, the Company had 
outstanding options granted for the purchase of 5,750 shares at an option price of $14-55 per sham, of which 
1.250 ara uxarcisable currently. At die same date a further 700 options were aval) able Tor further gram. 

10. Cash surrender value of Ofe Insurance of officers 

The insurance poUoy was surrendered by Manoff far $36,31 4 In the nine months ended 31st August, 1977. 
. 11. Parent company and principal shareholder 

Except for the shares owned by employee?, Manoff ts owned by Manoff International, Inc* a company 
owned and controlled by Mr Richard K. Manoff. 

12. Dividends 

Manoff has not paid any dividends during the period of five years and nine months ended 31st August 

1977. ' 

13. Audited accounts 

No audited accounts have been prepared since 31st August 1977. 

Yours faithfully 

New York. N.Y..U.SA. 

Pro forme consolidation of Manoff with GGI {in dollars) 



Adjustments Consolidated 

Fixed assets 

Investment in Manoff .. 


Current assets 

Work in progress 


Cash and marketable securities. 

. Current liabilities 
C red Kora.. 
Taxation .. 

. Your a fiiihludv. 

Notes peyebfa to Geers Gross .. 
Net assets 


The following is a copy of a report received from Arthur Andersen 6 Co., as reporting accountants on 
Manoff: — 

The Directors, 

Geers Grass Limited. 

24th January, 1978 


We have examined the statements of net assets of Richard K_ Manoff, Inc. (’’Manoff") (incorporated in 
the Stale of New York, United Suites of America) at 30th November. 1S72, 1973, 1 974. 1 975 and 1976 and at 
31st August, 1 977 and the related statements of profits for tha periods ended on those dates. Our examination 
was made in accordance with generally accepted auditing standards and according tv included such tests of the 
accounting records. and such other auditing procedures as we considered necessary in the circumstances. 

. The accounts set out below have been prepared using the historical cost convention. The accounting 
policies applied by Manotr m its accounts, which were prepared for use in the United States of America, conform 
to generally accepted accounting principles in that country and also conform In all materia I respects with gen orally 
accepted accounting principles In trie United Kingdom. „ 

The accounts set out below are presented in United States dollars and are based upon the amounts in tha 
audited accounts of Manoff which we have not considered necessary to adjust 

Summary of profits 

In our opinion, the following statement presents fairly, on tile historical cost basis, the profits of Manoff 
for the five years ended 30rh November, 1976 and tha nine months Brided 31st August. 1977, in conformity 
with generally accepted accounting principles, as recognised in the United Stales of America, consistently 
applied during the periods. 

Futdemts- .. 

Associated Company* 
Deposit with the Bank 
Currant assets 

Work in progress 

Bank balances .. 












- 2.673 



2,900 . 













=; i — 

e G rose (In sterling) 


GGI . 

Gross at 










<aiooj (a) 
2.150 (a) 

(600) (b) 



2 ,TS0 

- 39 



* (69) 



Adjustments Group 




254 (c) 
1,561 (c) 









9 months 

Year ended 30th November, 









(Nate 1) 

3000 ' 






Commission and fee income 




2.661 - 




Operating expenses .. 








Profit before profit sharing, staff bonus 

and taxation 







Profit sharing and bonus 

S. 4 







Profit before taxation .. 



1BT ’ 





.. 5 







Net profit 






~ 133 

Retained earnings, beginning of period 

.. 7 







Retained earnings, end of period 








7 . . — 

ar ~ ■ 



Included in operating expenses are the following : 

Depreciation and amortisation 

.. 3 







Interest income 




. (3J 

■ W 


. 06) 

2 737 


1.81 5 


Current liabilities 

Bank overoratts 



Dividend.. .. .. 







(26) (c) 














Deferred liabilities 

Notes tn GGI 

Deferred taxation _ 

Loans from On Bank . . 




2.TB7 (c) 







Net assets 



936 (d) 


Notes $000 

(a) Goodwill in GGI comprises: 

- Cost of investment ( $3,500,000 less $600,000) ' • Z900 

Deduct: Assets acquired (ST ,350,000 less $600,000) 

Summary of net assets 

lr. our opinion, the following statement presents fairly, on the historical cost basis, the net assets of Manoff 
at 30th November, 1S72. 1973. 1974. 1975 and 1976 and af 31st August. 1977,'in conformity with generally 
Accepted accounting principles, as recognised in the United Slates of America, consistently applied during the 

(b) Assets transferred to vendors in part settlement of the purchase price. 

(c) The proceeds of the share issue end the borrowings will be applied as follows: 

Proceeds of the issue 

. Loans from the Bank : 

Dollars ( $2,900,000) 

Starting (C70Q.OQO) .. .. .. 


Cost of investment ($24)00,000) .. 

Expenses of acquisition, capitalised .. .. .. .. .. 





30th November. 

Fixed assets 
Furniture and equipment 
Leasehold improvements 

/ess : accumulated deprttiaiion .. 3 

Net cash surrender value of fife insurance 
cf officers 








Sterling deposit with the Bank .. .. 













Applied to reduce overdrafts .. .. .. 




.52 ' 


.. S3 

(d) The adjustment to net assets reprsuna : 

Proceeds of share issue 

Deduct: Elimination on consolidation of net assets of GGI 




















• 52 


80 . 











Current assets 


. 450 





M.irlMdble seturilici .. .. .. 















Unbilled production costa 







Du-t irom olticrrs and employees .. .. 







Prepaid taxation 


. 9 

— . 


Other .. .. 

• • 19 




■ 22 









Current liabilities 






’ 1,245 




Duo to parent company and principal 






Due ip employees profit sharing plan .. 








Atrrur-i luljlliliei 










' — 










Net current assets i. .. 








Net assets 

Represented by— 

Shareholders' investment 

• • 







Share iJpiial .. 

.. 7 





• 1 


Shore premium 

m m 







Retained earnings .. 

.. 7 




. 475 










1. Ren ults for nine months ended 3 1st August, 1977 

Tho coni miss ion and fee 1 ncoir.e and profit for the nine months ended 31 sr August. 1 977 may not necessarily 
represent those quarters of the income and profit generated in a hill year owing tp the seasonal nature of the 
advertising business. In 1 975 commission and fee income and profit before profit s haring .suffbomis end taxation 
lur the nine months ended 31 si August. 1 976. based on unaudited management accounts, were $2,743,000 and 
$<51fl.(M0 respectively, whilst lor the year ended 30ih November, 197® weTe *4,146,000 and *1,177,DOO 
ru'tv.cifvch Th,- seasonal nature Df tho business should also be considered in comparing debtors and creditors at 
30ih Nc-vemher. 1976 and 31 si August, 1 977. 

2. Recognition cf commission and lee income 

Substantially all income 15 derived from commissions and fees relating to fhe production and placement of 
rdv oiuvcmums in various media. Commission Income is recognised In the month of presentation. Fan income it 
itcogrnsed over the term of each agreement. 

3. Depreciation and amortisation 

Depreciation of furniture end equipment is provided under ehherthe double-declining balance method over 
an estimated useful life of ton years or the straight- line method with estimated useful lives of three and five years. 
Leas ehold improvements are amortised aver the period of the lease. 

4. Profit sharing and bonus plans _• 

ManoH has a mm -con tributary trusteed profit sharing plan covering substantially all of its' employees, 
Bcnc'ns are pavablc. to the extern vested, upon termination of employment or retirement At 31 St August,. 1 977, the 
asujlvuf Ilw plan exceeded ihe vested benefits. _ -• - • 

In accordance with the terms of the pteri, Manoff charged 10 expense 9142,000, $130,000. 913,000, 
51 74.000 and 9306 000 respectively in tha five years ended 30th November. 1976. Effective 1st December, 1 976, 
Mmolf amended cartam provisions of the plan giving the Board of Directors of Manoff sole discretion in deter- 
mining future contributions to the plan. \ 

In addition to the profit sharing plan, Manoff has a discretionary borwsplen for which Hk approval of the 
Board of Directors is also required. Bonuses approved lor fhe five years epded 30lh November, 1976 wars 
te>pL'Ciiv*lv 526.000. 659.000. 996.000. $129,000 and SI 71 ,000. , ^ 

A prevision of 9198,300 has been made against profit for the nine months ended 31st August, 1977 
feptescnimg man ape mentis best estimate of the profit sharing and tonus p|*n contributions that will be paid 
bjscd on the proms lor the period. This amount is subject to tho approval of the Board of DirecMrsand u presently 
shown in rhe summary of net assets under theheadingoC'Due to employees profit sharing plan". - 
6. TataUcH , • , 

The United States federal rate of tax on the profits of companies is 48 per cent. A reconciliation of tho 
taxation cha ige si town in the profits s tateme nt 10 the federal rate is as follows : 

Taxation charge at federal rale of 48 percent .. 

Surtax exemption 

Amortisation of in vestment fax credit .. 

State and local taxes 

Olhcr. net 

7 aution charge per profits statement . . ■ , 

The statutory row of surtax exemption was $6,500 until 1975 when H became $1 3.500- .in -1975 and 137® 
Ibis exemption was spin 50:59 with tne parent company, Manoff International Inc. In 1977 80 per cam. ol tho 
exemption vviR ho cl junudbv ManoH.- ' ' 

Sure and fowl 10 * rates have approximated 20 percent of profit before la* smee 1975, lower rates applying 
* the c#her yean Such stale and local MMf* are allowable as a deduction in computing profits lor federal tax 
Purposes. . . 

6. Lease commitments - . . . 

ManaM'5 lease arrangements for office space provide lor minimum annual rental payments, including an 
•llBwancc for escalation, approximating $240,000 to 1933. 

7. Shareholders' investment t . . . ,• 

Manoff was formed 10 1971 and on 1 st Dcccmber.1 971 look ever ihe trade and net areata of rhcadvmruring 
agency business 61 Manoff International. Inc. (formerly known as Richard K. Manoff. inc«). Theauihorised capital 
or Manoff is 1 00.000 shaies of &0 >01 aach ; 72,401 share* were in issue al 31 st August. 1 977 m m m 

8- Share purchase ogreem ona . 

Under certain agreements. 16.530 £ haras have been purchased by empta-yee x Th e agreement, restrict 
the omptayoes' rights to sell or dispose ol Uwea shares end give Manoff tho rlgm of fte refusal to repurchase 
Ihe shjirs at a puce equal 10 *** lower p| the net book value of the shares as of the prior 30tn November and 
ihc month end preceding the fepurchase. V ,, . 

On 32nd August 1 977 Manoff and a former employee came to an agr«mennn« Manoff woura purchase 
all of his stares lor an amount equal to th onot book vaiijB as at 30th November, 1 977. At the lime of the above 
Agreement this former employee owned 4,832 sharps. • 

Years ended 30th November. 
1972 1973 1974 1975 


9 month* 

31 .8.7/ 





. $000 

* 5900 











. (7) 

• (11) 

< 4 ) 



' & 

















■ 396 




Year ended 30th November, 1977 \ 

The profit estimate for ihe financial year ended 30th November, 1 977 referred to above is based on actual 
results for the nine months ended 31 st Aug usi, 1 977 as shown in Ihe aud if ed accounts plus estimated results for the 
three months ended 30th November, 1977 taken from unaudited accounting records. This estimate assumes that 
the same accounting policies are adopted as were used for the nine months ended 31st August, 1977. ‘ 

Thirteen months ending 31st December, 1978 

The profit forecast for the thirteen months ending 31st December. 197B referred to above has been 
prepared od the following assumptions: — 

1. The results for the one month ended 31st December, 1 977 have been based upon unaudited accounting 
Information available at 15th December, 1977. 

2L The results for the twelve months ending 31st Docember, 1978 have been forecast on the following 

(aj Manori will notsufferthe loss of any significant existing client in 1978. 

(b) Commission and lea income has been forecast individually for existing diems on the basis of 
management's knowledge of each client, industry conditions and current opinions as to future 
diem intentions. There is no written documentation from the clients available to support the 
fonscos: levels of income. 

(c) Minoff’a three largest clients are expected to account for approximately 50 par cant, of commission 
and tec income ; the expected increase in commission from these three clients in 1 978 amounts to 
approxinute!y30 percent, ol forecast commission and fee Income of these clients. 

(dl Commission and tee income to be earned horn new clients is forecast el $1 50,000. 

(ej Payroll expenses are expected to account for 63 per cent of Urta r operating costs and -have bB.en 
forecast on the basis Df salaries prevailing in November, 1977 plus an allowance for the effect of 
known changes to salary levels and inflation. Other operating expenses, primarily establtahmeni. 
travel and entertainment, have been forecast to continue at similar proportionate levels to payroll 
costs as in prior years. 

(f) A provision of approximately $250,000 has been included in operating costs to cover' 

(g) Tne size and operations of Manoff will not be materially Influenced by changes in the United 
States economy, government action or the proposed acquisition by Geers Gross. 

(h) The accounting policies used in preparing the lorccast are consistent with the accounting policies 
used in the audited accounts fot the live years ended 30th November, 1976 and the nine months 
ended 31st August, 1977. 


The following is a copy ol a letter received by tire directors from Arthur Andersen Er Co. relating to (he 
estimate and forecast o> Manoff referred to abot e. 

1 345 Avenue of the Americas 
New York. N.Y. 
10019, U.SA. 

The Board of Directors, 

Geers Gross Limited. 24th January, 1978 

Gentlemen, . 

The profit estimate of Richard K. MenoFf. Inc, for the year ended -30th November. 1977 and the profit 
forecast for the thirteen months ending 31 st December, 1 978 (for wnich the directors of Richard K. Manoff, Inc, 
are solely responsible) are set out in she document dated 24ih January. 1978 issued by your Company in 
connection with the issue at 2.7 50,000 new ordinary shares of lOp each. The profit estimate is based upon the 
audited accounts for the nine months ended 31st August 1977 and on estimated results taken from unaudited 
accounting records for the three months ended 30th November, 1 977. The profit, forecast, which includes results 
estimated from, unaudited accounting records for the one month ended 31 fit December: 1977, is baaed upon 
assumptions set out above. 

We have examined ihe accounting policies and calculations adopted m arriving at the profit estimate and 
profit forecast. In our opinion, the profit estimate for the year ended 30ih November, 1977 and the profit forecast 
tor the thirteen months ending 31 si December. 1978. so far as tha accounting policies and calculations are 
concerned, have been properly compiled using the assumptions referred to in tha previous paragraph, and on a 
basis consistent with the accounting policies used by Richard K. Manoff, Inc. during tha five years ended 
30th November, 1976. 

Yours faithfully,, 


Year ended 31st December , 1977 

Tha profit estimate for ihe year ended 31s: December, 1977 referred to above is based on the audited 
results for the nine months ended 3Dth September. 1977 plus estimated results for tha three months ended 

31st December, 1977. This estimate is based on unaudited management records for the two months ended 30lh 
November. 1977 and an estimate for December 1 977 profits based on expected billings and expenses for the 

This profit esiimani assumes the t the associated company did not trade in the year. ihaltheetpenarcofGGI 
ate minimal and that tha same accounting policies axe adopted as were used for tha nine months ended 30th 
September, 19 77. 

Year ending 31st December. 1978 ' 

The profit forecast for the year ending 31a December, 1 97B of £350,1)00 referred to above is based on the 
following assumptions:— . 

(a) Trading wfll not suffer from ihe loss of any significant existing client in 1 973 nor bs adversofy affected by 
nrajorifidusirtai disputes or new fegtsJotron. . 

Lb) Turnover and tharaeuliant comnussan has been estimated individually for Bach client on the basis or 
discussions with the clien is in connection with their respective industry conditions. There is no written 
documentation to support these estimates. 

(c) No account has been taken ofincomefiomnBwaccountswhidi maybe obtained in 1978. 

Cd> Wage and salary costs have been based on actual levels already agreed for 1978 and assume no 
■ general increase or decrease instaff ovbt those in emptoymant in Decsmbsr, 1 977. 

(o) Rems payable and receivable have been taken at actual levels but other overhead expenses have baen 
assumed at 1 977. levels plus $n allowance (or inflation and additional exparufiturs arising through tha 
increased turnover. . 

(f) The cemrrassion payable to Mr. R; Gross and Mr. R. W. Peihick has been calculated in accordancs with 
the terms of their samca agreements on United Kingdom prolhfi only. 

(gj The accounting policies used m preparing the forecast are consratantwith tha accounting policies 
used in the adjusted audited accounts for me fora years and nine mon ths ended 30th September, 1977. 
The consolidated profit forecast for the year ending 31st December, 1378 ol £686,000 referred to above, 
which comprises the profit forecasts of Goers Grass and of Manoff after ol lowing for net interest costs and 
additional directors’ commtoions. is based on the following assumptions (id addition to the assumptions numbed 
above in respect of Manoff and Geers Gross) 

(a) The expenses of GGI will be minimal. 

<b) Tho whole of the profit for the year wising in Manoff can ba propaify consolidated with other Group 
profits lor the year end that none unh be pre -acquisition. 

(c) Thera wifi be no significant change In die doilar/stejiing exchange rate of 41 -95 m £\ adopted in this 

- (d) The cost to the- Group of net bank interest arising tom the arrangements with tha Bank wifi not be 
signiftoamiY different bom the £39,000 indicated baJow. 

(e) The associated company wUl not trade in 1978. 

IQ GoodwBI (whfcb includes the expenses of Issue) arising in connection with l)w acquisition of Manoff 
will not be amortised. 


* Th® following are copies of fetters- received by the directors from Griffin Stone. M os crop & Co . and from 
Sheppards and Chase relating to Ihe profit eeiimaie for the year ended 31st December. 1977 and fie profit 
forecast for the year ending 31st December, 137S:— 

The Directors. _ 21 Manchester Square 

Geers Gross Limited. London $AP. 

Gentle men, 24th January. 1973. 

We refer to the pre-tax profit estimate ol £290,000 for the year ended 3lst December, 1977 3nd the 
pre-tax profit forecast of £550,000 for the year ending 31st December. 1973 of your Company (lor which you 
as directors are hWv responsible) set otn m the document dated 24th January, 1 978 issued bv your Company 
in connection with the issue of 2.750.000 new ordinary shares of 1 0p each. 

■ We have Rwminea the above men Honed profit estimate and profit force art which arc bast d on manjaent r t 
estimates and which follow assumptions as stated by you in that document and we have discussed these with 
you. In our opinion, the protit estimate and profit forecast, so far ns ihe accounting policies and calculation 
ara concerned, have been property compiled in accoidance with the assumptions sjjicu. 

We further refer to tho consolidated pre-rsv profit forecast of E6S5.000 tor the year ending 31s! December. 
1978 (for which you as directors are solely responsible) set out In the same document. 

We have examined the above mnmioned consolidated profit forecast which incorporates rh? profit forecast 
of the Company's trading within the United Kirftdorn with tha profit forecast ol Ric-h.nd K M morr, Inc. v-.hich 
have been prepared using the assumptions cinod in that document. We have discussed this forecast with 
arid have also reviewed the report of Arthur Andersen Et Co. m so tar as the forecast incorporates the forecast 
. f nd assumptions of Richard K. Manoff. Inc. We have examined the accounting policies and calculation* adopted 
in. arriving at trie consolidated profit forecast and. in our opinion, this has been properly compiled using the 
assumptions referred to and on bases ccnscicm wi:!> the accounting policies used by the Company. 

Yours f -nihiuliy. 


The Directors. 

Geers Gross Limited. 

dements House Street 
London £C2V 7 a u 

Gentlemen. - J fo JanuatY. 1 97S. 

We refer to the profit Bsiimate of >ou« Company lor the year ended 31r.t December. 1 977 and :he profit 
forecast for the year ending 31st December. 1973 which appoar in the document d-iMd 24ih January, ta’s 
Issued by your Company in connection with trie lisue ol 2.760.000 now ordinary snores ol 10o each. We hive 
discussed ihe profit estimate and lorecav. and the assumptions on which ttioy are based with you and 
Griffin Stone, Moscrop&Ca. end have a bo considered iho letter doted 24th January. 1 9~S Jddreiiodro'ourso-voi 
from Arthur Andersen hCo. with respoci to the profit estimate and profit lorecjsi cl Richard K. Mancti. tnc. 

On the basis or the assumptions made and on the accounting bases reviewed by Griffin Stone. MoiCroo 
.& Co., and by Arthur Andersen & Co. for Manolf. we consider that the profit c^tmraie lor the yw vrdod ji„t 
December. 197? and the profit forecast for the seat ending 31st December. 1976 ytor which you os d icccier, jr« 
solely responsible) have been made after due and carelul enquiry. Vour , failWu |,.. 

• Members of The Steel. E -change 


’Financing Arrangement* 

The consideration of $5,500,000 (Cl -79111.1 for the whole of the common mdcI. of Manoff wiii be oa,d in 
pert by the transfer ol certain assets, amounting to .ipproximatvly £600.000. ro rliu vendors on completion 
which is expecied to take place on 31vt January. 197S.The balance of ihe consideration or 5 2. 900.000 , il aim > 
will be provided by* Manufacturers Hanover Trust Company (“the Bank"! by way of a eurodollar (pan ro :n« 
Company and will Ik- used to subscribe for the share and loan capital ol GGI as derailed below. As a condition 
of this loan, the Company will deposit the sterling equivalent at tho tmiy ol draw down ol the riotljr ion ptu-j 
» margin ol 5 per cent, to cover currency fluctuations, with the Bank in London. On tnc basis of trie rale of 
exchange used in this document the sterling deposit will amount to Cl '56m. The loan ha-. tK-en arranged 
as a dual currency washable loan, Hu) is to sa> the inictest due in dollars on the vu' tcran. winch will bo 
charged at 1 £ per cenL over the London mior-bant- entered raio for eurodollar deposits, will be p.nd nut at trio 
imcrcct earned on ihe sterling deposit, which will earn interest at tfiu London inter-bank altered rati*. 

The major part of iho sterling deposit has been tin yncud by an issue ol 2.750 000 new oidin.ny hares in the 
Company at a price of 4T^p per state to raL;e appiov mutely El. 14 1.000 before e-peiiM*; Ol the 2 750 QJO new 
Oidmary shares being issued, 1,421.400 have been otti-red to shareholder otta-i than director a ol the Ccuuunv 
and shareholders resident in the United States, lor subscription bv 27ili January. 1978. Certain 
Shareholders have agreed to subscribe for their lull entitlements totalling 690.000 new '..hares .. no Cuniract i 
below). 731.400 new shams ("ihe underwritten sfur.-s"1 havo bnen underwritten by Siu-ppaids and Cha.e. 
who hove also agreed jo subscribe or procure subsenbars lor 1,328.600, thu balance ol :hc isvuu y' the placed 
•hares") (see Contract 4 belovvj, 

To piovide the balance ol the sterling deposit (lie Bank has agreed to make available a five year 
of £700.000 reducing by equal annual instalments ("the sterling loan") with interest at 2 percent, over the Bum's 
base rale from time io lime (currently 61- per cant, per annum), secured by fixed and Mooting chaiget cn :ne 
undertaking and assets ol the Company and certain subsidiartos. 

On the basis of current interest rates, the net interest cost of trie dollar and sterling loons tar the y ear ending 
3!st December, 1978 will amount to approximately' £69.000. 

The eurodollar loan wril be used by the Company to subscribe $400,000 for the capital and '. 2.500 000 
for 8 per cent redeemable notes (“the Notes") cf GGI. a private company incorporated in (he Stale ci Delaware. 
U.SA., on 30th November. 1977 and formed foi the puipose of acquiring Manoff. The Notes will bu repjid m 
annual rate of $200,000 together with interest, equivalent to a further $200,000 in the first year on an annual basis. 
These sums Wifi bo applied towards a reduction ot the eurodollar loan, thereby idojsmg an equivalent amount 
of the sterling deposit, which In lum will be applied m reducing the sidling loan. 

Although the eurodollar loan and sterling deposit arc lor ten years, ihe Company may repay the euioaollar 
loe n at any rime ar its opt ion o n giving one month’s nonce in tranches al not lus* than $50,000 thereby releasing 
. appropriate amounts Ol the Sterling deposit. All necessary Exchange Control and Treasury consents nave been 

Allocation of profits 

* The agreement for Ihe purchase of Manoff ("the Agreement") provides that during each of the five years 
ending 31 si December, 1982, the first $700,000 of ManolVs annual profits bet ore management bonus, employers 
profit sharing and taxation will be subjecr to the disposition and control of GGI with the next $700,000 be-nq 
applied as management bonus and employee profit sharing. Any profits in exeuxs of $1,400,000 per annum 
.will be subject to the disposition and control ol GGI. 

During each of the succeeding fivo years ending 31st December. 1937. the first $12200.000 of ManoH « 
profits before management bonus, employee profit sharing and taxation will be subject to the deposition and 
control of GG.I, with the next $600,000 being applied as management bonus and employee profit sharing. Any 
profits in excess ot $2,000,000 per annum will be subject to the disposition and control of GGI. 

Certain of the directors of Manofl will be eligible lo participate in the management bonus and employco 
profit shanng payments. These arrangements will modify the profit sharing and staff bonus plans previously in tore*. 

The Agreement also contains warranties by the vendors that Manolfs profits afiei taxation tor the year 
ended 30th November, 1977 would amount to not less than $300,000 (£154,000) and that Manolfs net v.orfo 
at that date would amount to not less than si .375.000 ((705,000). 



The information contained in ihi« document retain; to ManolOiu bee" supplied bv the directors of tUnolf. 
provided written confirm icon that all foots sated, information civen, miemimti made and do the best ol thnr t r> sm iaduM 
opinions crpresced in thn document concern inc Manoff are i me and accurate in all respect i and tint noneol-.hcmn nnslesdinc 
and due there are no other t a cts . information, statements or opinions the om-sslon ol which michs make -utv tat, ,r.tormJCioi 
statement or opinion in this document concerning Manoff mulradinx or inaccurate. 

Shore capital 

Dunne sfce two years precedins th* publication of this document ai d case at disclosed herein;— 

iff no share capital of the Company or any ol in tubtidianes has been issued lor cash or lor a consideration other than 
cub and no such capital n now proposed to be issued -.and 

Inf no commissions, discount!, brokerages, or other sprcial arrancements have been crimed by the Company or ia 
subsidiaries in connection with the issue or sale ol any el their share capitals. 

Directors and other inte rests 

raj The interests, all oT which ara beneficial, of tho d-rrcior* el die Company and their families in the ordinary share capital 
of (he Company and their hokhnes of options under the Company's share option scheme, are as follows;— 

shares options 

R. Grass 500.000 45,000 

R.E Geers i -SO ,000 _ 

ILW-PeihitY ITS, COO 35.000 

R. E, Lanpndce — 35,000 

T. C. R. Myers — 35,000 

lb) TheCampsnv has been notified that Cunmnshim A Walsh Inc. is interested m ]|J.600ordiniryshsres berne 12 3ap-r 
cent. Of the issued Share Capital prior to ihe issue ot chc new shares and that The Slock holders In. Tru-.i lam.ied '• ■ 

m terraced in 270,000 shares beinc I0-J7 P*r cent, ef the issued share capital prior to the present issue. Sa»e as mentioned herein, 
ttvs dircciors are not aware of any other persons holding or beneficially interested in 5 per cent, or more ol ilw icaed share 
capital ot she Company. 

<e> None of the Compan/i directors has any interest in any msecs which, during the two tears preceding the Pi/Mica'ion 
. or this document, have been or are proposed to be scoured, disposed of bs, or Ir-sed ro she Comp-mr or any ol iu. wbsiii' tries. 

idl All the eieeusive directors ef the Company have lull time nr. ice contracts with the Com.-unv which iviCm: for 
Mr. P.. Grass) are eubrect to torminaiion on one vear's notice, none of which has been altered since the date cX the nonce 
convening the last annual central meetint. Mr. .Gross' service ar.rnemtni as li*nacin; Director dilc-J 4th December, I9'« 
expires on 3 1st December. 1979 luibfecx io *n option to renew lor li»e yearn at an annual salar. o( t Id. 000 with an enlitltme'-c 
to commiitior ->f five percent, on the Company's consolidated profit before u>, Under the arranrements currently m forte, iim 
ajpefils emoluments of rhu directors lor the year ended list December, 1977 and for the year ending 21st Dncemper, 1910, 
baaed on the profit estimate and forecast lor chose periods, are mu male 0 to amount to £83.000 and tl 12.000 rcspccii.rl,. 

(e) Save as disclosed in this document, none ol the directors ot the Company has any material intrrest in my contract 
or arrangement subsisting at the date of this document which n sicnificant ,r> relation to the bu-nicss of the Company and iia 
xubsidiariee taken as a whole. 

Article* of Association ... 

The Amdes of Association contain prmnsioni (inter oriol to the foil a wine rtfret:— 

1. Subject to any soeciai terms as to uotinc upon which any shares may have been issued, or may far the time beinc no 
tiekL every member present in person shall upon a show of hands ha.e one .ole and ever, member present m prreon or of 
prpxy shall upon a poll have one setc for every IDp in nominal amount ol the shares held by him. 

2. The directors shall restrict die borrowings of tho Compan, and take all necessary step! to esercise all vo'inc ;nj 
ether riches or powers ol control e,ereitaole_by die Company ns relation ta iis subsidiary compjnn-s so as to secure iu iar. o 
records subsidiaries as by such rrerciae ihe Company can sccurei ihai the ar.tresate forraxmj, lor the time home cm- to 
persons outside the Group shall not at any time without the previous auction of the Company m General Mertmc e.eevd a sum 
«puai ia three limes die itcrwu of the , ■annual capital ol ihe Comean, for fhe rimr font niijcd an-S a-<d uu .ul the unauAii 
standi nj to the ensdir of the consolidated capital and revenue imcludiui: share account, capital rtdempiioii 
reserve fund and profit and loss account! of the Company and its sutxadiar/ companies adiustcd in she manner ;c i out in the 

J. No director boldine office ns Maiucina Director or Exrcutive Direeror shall be lubirer to retirement bs roiatiAn. 

4. Each of die directors snail be paid out ol d«r funds of the Company by way si rrmuncraifo'i, such wm in anil as ihe 
Company may m seneral meeting from time io time determine. Such remuneratiori shall hr d’.idcd ario„c Ihvn m su^ii 
proportions and manner as the directors may determine and in default of dereraunaiian equally The salary or rr -miner ■:,„•■ 
ed any Manasinc Director or Executive Director at the Company shall, tubjecs as provided in any contract, be such a. tne 
directors shall Irom time co lime determine. 

5. A director may hold any office or phec ol profit under thr Company tereiDr tbit or udifri m conjunction wtihi.he 
office of director and ntav act in a prolrsuonal capacity to the Company and *n any such case on tuch serin* as to rneunwr.iva 
and otherwise as Che directors way arrange. A director may enter into any contract or arraneemens w,iti the Comps, >v .wj anr 
director entorm: into such a contract or arrangement shall net be liiPle lo account to the Company for any profit rraiise-i 
by such contract or arrancement but Ihe nature ol Ihe dsronor's interest shall be disclosed by him in accordar^e with iho 
provisions of Section 199 of the Companies Act I94B. 

6. Subject to certain exception: specified in the Articles, no director shall voie r. ,i director .r, respect ofanv contract 
or arrancement in which he is interested and if he docs so his vote shall not be counted nor shall he be counted for the rurpo.a 
of quorum in tuch cate. Such prohibition may at anv time or times be suspended or relaxed to any extern by the Company m 

General Met tin;. ....... 

7. A director may sole as a director in respect of any proposal considenne the award of pensions, annuities and ether 
benefit! or che aVoDtiei of a superannuation fund or tchemo (whether contributory or nomconkributory; under %,hicn he may 

e. The statutory provision! as to ace limit for direr: ora shall not apply. 

Star* Option Scheme .... 

The terms of the Scheme which i* administered by the directors provide for the cram of options to foll-uifie e xren:.. e* 
r-nrfudinc enecutrve directors! ol the Group under SO years pi nee « nominated b, the directory up to a maximum ol anV.-PjO 
shares or 10 per cent. o> the issued share capital of she Companr whichever is rhe less. The sum of £1 ■: pa> able as collude ra- ion 
for the trsntoftn option, and she maximum value ias subscription prieexi of shares osor whiCIi an cieeusisc mar be t-wml 
an option in any year -hall nos, tofieihcr wish the value at subscription prices ol shares already acquired or to be acquired ,,i , no 
earfeue of options pre»ousl> cranted. exceed four times she executive's remuneration caxable in that or the nn-.iam re.r. 
whichever is the r.reatcr icnorine remuneration exreed, "c £25.000. The siibicription once xliah is p.i,sbk> ,n lull .,Don iho 
r xercise of an oonon is the middle eurlei quotation in The Stocs grchinee D,ul. C-b iCial Liston the la.t dealing di, o-, fare :i,n 
option is granted or the nom.nal value cf tlic ordinary share if nicher. In oni <an ira, nos normall, l-= e.crc.scd uni. I three --,'1 
h„e expired Irom its irare in an cxecuii-c and w.ll net narmilly he «-,rrcisabJc alter the e.pir y or .even rears Irvn ,-s ci anr. 
The ordinary sharer issued on the e-ereise ol an option will rank m all respect, fun Iffiiu with me other vrdinar, snsre: ,1 the 
Company. No option may be (ranted more than 10 yean after 3rd December, 19/4 the date on whieu the Scheme «ai approved 
by shareholders- 
Sotrtidiory Companies 

The Company hai the following subsidiaries, all of which are v. hob, -owned, private companies mcorpu rated t 

i Enal. 




,, JOlh September. 1764 


.. 3 lit A*j(;rj-.| B r89d 

. . 30th March, 


.. jOth March. 1 ‘*(,1 


.. btii Ma,. 1970 

.. 3in4 August, 19J7 .. 


I eh June, 1971 
2nd August, 19fi7 


■ under ihe lawsol the State of Delaware, LVSvh 

Ceers Gross Adverti sine limited 
Thomas Browne Group Limited 
Brans ne’e Ad vtnliains Limited -- _ 

T. B. Browne (Trade Marks and Parents) Limited 
T. Bv Browne Marketing Services Limned 
Consumer and Trade Promotions Limited 

Barney Browne Limited 

George Cuming Limited _ .. 

GGI, which was incorporated as a private company with limned l.ibilc 
an Dfhh November, 1977. is a'foholly-owncd subsidiary or the Company. 

Manoff, which w»s mcoPporatml as a private company, with limited liability under the laws c r ths State of N-w Tor*. 
U.S.A. on JOzh November. 1971, will become a wholly -owned Subsidiary lollawma the Company's completion of rhe Agreemena 
for trio purchase of Manoff with effect from 1st December, 1977. 

Ihe Company also owns 40 per cent- of trie issued share apiial of its aisoclated company c.I.G-G. Aktiengcsellscha's. ■ 
private company registered in Zurich, Swicaorland in 1975. 


The following Exmtracxs which are or may bo material have been encored ,nio within the last two years by the Company 
or a eubiidiaryt — 

I. Dated so ol JOth November, 1977, is amended, between GGI <! i and Manoff International. Inc. and 1. H. LKhcracti ill, 
betnfi cho condrcmnal Acreemeni referred so above for che purchase ol the whole ol the issued share capital ol Manoff. 

Z Dated Sch January, 1 978 being two letters Exchanged between ihe Bank and the Company setting out the terms and 
conditions on which the Ban* hhU make the two loans rrlerroi in above :o che Campany. 

3. Dated 4ch and 5th January, 1978 being trio undertakmc* c> th: Co-nsiw referred u abar? by which Antony G-bbi 
t> Sons (Nominnot) Limited, The Alliance Investment Company Limned, Royal Bank ol Scotland as Trustee of London Wall 
Nigh Income Priority Trust, Jaritox Finlay Nominees Limited, Founders Court Nominees Limited and The Stockholders Inveximcnc 
Trust Limited have each agreed ta subscribe in full for their entitlement t aggregating oWI.QOO of the new shares at the issue price, 
for which thev will receive a commitment commission ol j per cent. 

t Dated 5th January, I97B between die Company I li the directors of the Company Cl trie shareholding directors of 

the Company (31 acid Sheptsarih and Chase H* being she conditional agreement by which Sheppards and Dine ha-e agreed id 
place or underwrite of tho new shares at a price of XI Jp per share. Under tlus agreement the Cdmpan, will Pa- an 

underwriting ccntirnitHon or I) per cent, on she underwritten shares, a .ummiimcn! commiv-icn of ■ per cent, on 3 J4.5W o< the 
placed shares and a further commission of 1 per cent, on such number of these shares as are required to satisfy applications 
from tho public. 

General ..... 

(a) The directors are not eware of any litigation or claims of material importance pending or threatened sganr-t tho 
Company or any of its subsidiaries and the directors of Manoff are no; axjre df any litigation or Ciai.iu of nuwrial HTiurtanco 
pending or threatened against Manoff. 

ibi Tho Agreement contains se«cral warranties and fodunnutiiis by the vendors el Manoff in rev 1 — of anr tax payable by 
Manoff in rcucct oral 1 , periods up to JOih November. 1977. 

(Cl Tho proceeds of the issue of the new shares are estimated to amount to tI.14I.DOC before expenses. Tho expenses of 
che acquisition and of the jstuo of the new shares Lineluding capital dvt*i underwriting and cornfTiftmcnE commissions and fees, 
accriuncitic and leaf costs in the United Srcc oiu) the United Kingdom, printing and the expenses of the rc-listingj are estimated 
CO amount CO QL4.0QO excluding VAT and will be paid by rfw Company. 

Id). The directors ire BCsfied trial, caking into iceeune available banking and other facilities and the Proceeds of the 
proposed itnt of tho new sham, trio Company and its nitre thanes will havo sulficicns working capital for tneir loraseeibia 
requirements afear eomplBtlan of the aequMitioii of Manoff. 

fa) A Certificate of Exemption has been granted by tho Caunsil of The Stock Exchange pursuant to lection 39 of cha 
CampMiccAB IWB. 

Ill Arthur Anderan 6 Co- Griffin Stone, Moscrop & Co. and Sheppards and Chat® have B ',v«m and not withdrawn their 
written conscfica to che ismo of this document with die inclusion of their respective reports and letters and of the reicrentei to 
theta in-the form and context in which they are included. 

fg) Mr. P, M, EiMcn, Secrmry of (ho Company, is a partner in Franks, Clurlesly & Co., soliciton, who will be receiving 
a lat In connection with th* matter* referred to in this document. 

Ih) The Agreement provides that on temptation Mr. Richard K. Manoff will enter inis an employment agreement with 
Manoff'guaranreed by the Company tor the term of fifteen years in Irom lit January. 1*78 a: an annual salary of $300,000 
f£IM.OOO) for the fire coven, wars and at art annual salary of Cl 12,500 (£58.000) rim -djuwmenp for ant or living increases for 
the ocxi oiehtycars. In addition, in reaped of the fine five, rears of (he contract, Mr. Manoff will be entitled to participate m ihe 
aaepod $700,000 t£3S9. W®. 1 earnod by ManoH to ba applied as management beaus and employee profit sharing ai menlionc J 


Cl Tho minimum amount-required to bp railed for the purposes or Paragraph 4 of Part I nf th* Fourth Schedule lo the 
Cofnpanfes Act 1948 it £1,1*1.000. nude up, as to £ 861. 000 for tho purchase of M-v.otfi £7,039 for cnmmisJoiu; £247,000 for 
other tB«i of the acquisition and issue, fearing £ 26,000 for additional working capital. 

(il Tha vend oe. shareholders ar« Manoff Intornatnral, fee. and J, H. Lashcn'fok I bath of SaS, Third Avenue, New Verk. 
N't 10022, U-5-A.) to whom tho considor«lon is parable as to $3,233,010 and $266,370 rmpenively. 

(h| GGL has not commenced trading and ho accounts havo been prepared. 

Ill The directors nave no present intention or makine ariv further item of iriare capital and no isiuu will be mad* which 
would mfectnfoly alter ihe control of trie Company or the nature of its business without trie prior approval of shareholders in 
seneral mount 

Documents aval table for inspection 

Copies of the follow*"* document* may be inspected at tha offices of Shepoards and Chase. C foments House. 14 18 
Graham Street, London EC2.V7AU during usual bubnesi hours on any weekday (Saturday* and Bank H«liOa r a eacepicoi lor 
a period bf 14 days following tite publication of thu deainienti 

ia) The Memorandum and Articles of AcsocMtlon of trie Company. 

lb) Tha auditad conulidaied accounts of the Company and its subsidiaries for the years ended 31st December. 1975 and 
list December. 1976 and tho audited eonseUdhted accounts for the nine mon tha ended 30th September. I9T7. 
ft) Trie auditod account; bf Manoff for tta yair« ended 30th November, I97S and 30th November, 197b and the auditod 
accounts for tha mo« (non the ended 3 lit Auguat, 1977. 
f dl The report of Arthur Anderten & Co. 

S i> The report- of Griffin Stone, Mpoerop 1 Co. and their ataccMbnbi of adimuiKnu. 

1 - The material contracts rofor red go above and a Ural! of thqosrepeKd employment agreement for Mr. R. K, Manolf, 
iti The leran screements referred to above. • 

(nl Tho letters from Arthur Andersen & Co„ Griffin Scone. Moscrop A Co- and Sheppar d. and Chase act out aboio. 

0) The eofuent* nferred u ahAne* 

Dated: Zfth January, J97<a 



Financial Times Wednesday Januaiy 25 1978 




Call for 


UNITED GLASS has promised The agreement between United the past by that other competi- tate forward- 
the Price Cora mission that, pro- Glass and the Commission means tion body, the Monopolies Com- Improve plant 



and j 

v idcd there arc no unforeseen that the remaining 228 per cent, mission. present, customers give annual 


Trustee banks link 


part of their 

By Peter Riddell, 
Economies Correspondent 

increases in unsts, it will not will be loaded on to the prices The Commission said United or quarferly forecasts of require- 
raise the prices of its jars or paid l).v the Company's larger Glass was a well-run company, meat which are sometimes modi- 
boitlcs for nine months. customers. These include hut suffered, with the rest of fied at short notice. 

The coinpan v has also agreed Distillers Company who, wirb the the industry, from constraints- on ' The MmDanv ., ' differential 1 „ 

to review fundamental aspects American glass manufacturer, productive efficiency arising from 4 , THE GOVERNMENTS present 

nf ns operations, including its Owens-Illinois, ~ e 1 pnang struclure ra, “ m ° e a|rt " hh - »"* 

rtiffereniial pricing structure. Glass. w «h»i«b «i» «« nnciHnn hnt h^iipr lermsi “S. 

and is to examine the possibility United Class is the second price competition, was the mam total j)f more than Ira. in i98i. 

anu IS io examine ice pu»iuiiiiy uuueii uims u> me sccunu *'**'-'; nfTomrt r i l-irooi- .„.tnniPK WP » i i . . “ - — 

•if im proring its use of capacity company to give the Commission consideration in the glass market. ^i <he Fablar) Society contends in 

hy ohiamin's firmer contracts an assurance about its future The company, which has about Hjsufucientiy • ^ t0 cosl Its comments on the recent ex- 
from customers. prices since the new price 30 per .cent of the total glass Mv n ** 5, penditure White Paper. 

After a three-month investisa- monitoring body, set up In tnarket and around 60 per cent. The Commission investigation The comments were made by 

tion. the Commission has given August, started publishing its of wine and spirit bottle -sales, found significantly higher profits! Mr. Paul Qrmerod. an economist 

Utt Glass Containers — a wholly- reports three weeks ago. But it had a basically conservative on selling to .smaller customers j with the National Institute for 

owned subsidiary of United Glass is the first to promise the com- approach to capital investment, than when dealing with big I Economic and Social Research, 

—the go-ahead Tor a 9.S per cent, mission a review of ils opera- Most of its investment pro- buyers. ‘ J r ahians criticise the strategy 

increase originally proposed in tions. gramme had been directed to the The Commission urged the and in particular, the policy of 

September. Even a tier September, the maintenance of existing capacity company to renew its system of r restraining the growth of public 

The bulk of this rise has Coramissiun will keep an eye on rather than expansion. This uniform delivered prices. The 1 expend itu re to stimulate private 
already been implemented under the company's prices to $ee"what cautious approach to investment present system of charging the j • and boost economic 

the profit safeguard provisions progress is being made towards was matched by a lack of aggres- same price irrespective of where | ® r 0> 

nr the new price controls and this review. siveness in the company’s the customer was located could! u ^ er c t (L 1 ? 3 j recen J 

the Commission found no justifi- Areas in which the commission marketing strategy, the Commis- mean that customers near f 3 ?-! e !l?® nc 5j - s j no1 

cation for stopping the company considers a review necessary are sion noted. tones were paying higher prices 

implementing the remainder. similar to changes proposed in Firmer contracts would facili- than necessary. 

Scots seek 

CBI moves to guard profits 


THE SCOTTISH Development 
Agency is seeking joint ventures 
with European companies to 
promote industrial projects in 
Scotland. Mr. Lewis Rohcrtson, 
ihe agency's chief Executive, 
told businessmen in Brussels 
yesterday that there were “ par- 
ticular opportunities in down- 
stream activities” related io 
North Sea oil and gas being 
pumped ashore. 

The agency is mounting a 
sustained promotional campaign 
on the Continent. Mr. Robertson 
and Sir William Gray, the 

British Industry is expected to 
urge Mr. Roy Hatterslcy, 
Prices Secretary-’ to-day not to 
give in to pressure to abolish 
the profit safeguards written 
Into price controls. 

The subject is one of a 
number which probably will 
he discussed when Mr. Hatters- 
lcy meets Mr. John Green- 
borough. CB! president, and 
Sir John Metbven, Director- 
general, for lunch to-day. 

The ('BJ's anxiety arises 
from reports at ibe week-end 
that a Labour HP proposed 
tabling * motion calling fur 
the abolition of the present 

agency's chairman, are spending 

three days in Brussels meeting j proOr ^Veguards. These pro- 
EEC ofl'Tials. bankers and visions restrict the Govern- 
hu sines? men. . ■ merit's ability to freeze prices 

during and after a Price Com- 
mission Investigation. 

Mr. Haltersley is known to 
be worried that the safe- 
guards may be undermining the 
effectiveness . of legislation 
introduced in August. 

Throughout the early stages 
«<f (he debate over the new 
price controls. Mr. Hatterslcy 
was. opposed to the principal of 
numeric safeguards. He argued 
that they were incompatible 
wtih the new discretionary 
system am! that the good 
sense of the commission would 
he protection enough for 

The CBI. supported by the 
Conservatives, maintained that 
such assurances were totally 
inadequate and that companies 
must be given statutory protec- 
tion against the effects of a- 

Price Commission investiga- 

The result . was a complica- 
ted set of rides which prevent 
a company's margin on a pro- 
duct being eroded beyond a 
certain point. 

When these safeguards were 
proposed the CBI maintained 
that they.. too, were 
inadequate and that they com- 
part'd unfavourably wUh safe- 
guards written into prices 

Despite the fact that the 
majority i-t companies, investi- 
gated by the- commission have 
been able to get the greater 
part of th** increase originally 
notified under these safeguard 
provisions, the CBI box not 
changed Its bellcr that (hey 
offer industry iasuffirleiiU pro- 

occur and that a sustained expan- 
sion of the public sector is 
required if unemployment is to 
be .brought down to acceptable 
levels la the next few years, 
especially- since world trade is 
likely to grow relatively slowly 
“-If unemployment is . to be 
brought 'down to less than 
750.000 by 1981,' we regard a firm 
commitment to an annual rate 
of growth of real Gross Domestic 
Product of 4} per cent as essen- 
tial. Given the evidence of 
recent years, this was only 
possible .if the public sector 
increased' its share of total out- 
put. Government plans imply 
a reduction in the Immediate 

THE TRUSTEE savings banka rapidly growing 
have joined the- Visa inter- business. . ■ ■ 

, national credit card system, . The move follows the intrtwue- 
! which includes Barcl ay card in tion by the TSBs at the beginning 
the U.K., in a further major of August last year of their new 
development towards expanding personal credit services, mr. i. 
their personal banking services. Bryans, chief eenera! manager oi 
The banks ‘ plan to launch the.TSB central board, said that 
their new Trustcard on Novem- by the end of last year, the oanKS 
ber 1. Mr. Kenneth Gherrett, had granted loans to. more than 
who has been appointed general 30,000 customers. . 

manager of the Trustcard operar '; introduction of the credit cara 
tion, said yesterday that the represents another important 
banka could have up to Im. cards step ■ in the progress of 
issued to selected customers -in. trustee banks towards ■ buiiujnc 
two to three years* time. ■; up a full range of banking ana 

The new card will bear : the investment services. ■ 
brand colours of the International Tbe TSBs have adopted tne 

Visa system-— blue, white and Visa system with the full support 

gold stripes— and wilt enable of its leading U.K. member* 
holders to use the card to pay Barclays, with which talks , were 
for goods at 100.000 retail out- first held some five years ago. 
lets in the U.K. and 2Jm..Vlsa Bard a yea rd is also undertaking, 
outlets world-wide. • ‘- rfor a management fee. all t ne 

It will act as a cheque guana?- processing functions as agents 
tee card for hdlders up to £50 a for the Trustcard operation in 
cheque, in addition to the separ- order to avoid duplication of 
ate cheque card already issued .facilities. . 
bv the TSB. which may be . This means Barclays will 
phased out. It will also provide handle negotiations with re- 
a cash advance service at a total toilers, and Trustcard i.s expected 
of 5.400 bank branches in the at least for the time being to 
U.K. and Ireland when the TSBs follow the pattern of Bare lay card 
join the. system. . charges. 

The 19 regional trustee banks At present. Barclaycard is 
maintain 15m. customer accounts,' cheaper that its main rival, 
through, a network of L655 Access, with an interest rate of 
branches, and have over L5m. l± per cenL a month against 
cheque accounts, the most lj per cent 

Island bid for 
postal service 

ALDERNEY, Jan. 24. 


postal service could be intro- 
duced in three or four years, Mr. 
'John Win ck worth, vice-president 
[of the States of Alderney, said 

Let journalists run 
papers, says editor 


' What makes two into one? 

The Arab world is the richer for a new and powerful bank, the 
Albank Alsaudi AlhoUandL As the name suggests the Saudis and the 
Dutch have joined forces to create a new bank. This marriage of Dutch 
international banking expertise and Arab wisdom and influence 
promises to bring many benefits to Saudi Arabia. 

The Dutch partner in the new bank is Algemene Bank 
Nederland which has been in business for 150 years and has already 
been established in Saudi Arabia for 50 years. In addition, the ABN- 
Bank has vast know-how throughout its offices in 40 countries on the 
five continents. 

To this fund of franking knowledge Saudi Arabia now adds its 
potential and its Arab influence, together with the value of local Arab 
involvement that offers so much to the international businessmen. - 

The banking skills and financial influence that make up the 
Albank Alsaudi Aibollandi introduce to the Middle East a truly 
modem bank of international strength and sophisticated facilities. ‘ 

Albank Alsaudi 


telex 4cfiJi: 
telephone 41207, 

l-ejcral Republic of Gennanv, Switzerland. Gibraltar. 1 lal y. G niece. Turbiey { HoLnlac Bank-Uni., Lebanon, United Arab Bmiraics, Bah non, * 

Iran ..Atcirannle Bonk ot Iran and H«ll and . Pakiaun. India. MaluyMU. Singapore. IndnneMa. Hoogknap. Japan, Munxxo < AJgemcne Bank Marokko S-A... Kenya. • 
U-S A. Canada. NctherlaW* Annllci. Suriname, Venezuela, Panama, Australia, ,‘icxiwu. Oper ating under the name Banco iiolamia UnidoilE AlgcndiSl, Uruguay, ^ 
Paraguay, Brazil, Peru, liciutlor, Colombia. > 

MORE JOURNALISTS and former journalists, be said. “ Bui 
editors sbmiid be brought into others are run by people who 1 
newspaper management, bfr. suspect, have no real uoderstand- 
Alisdair Macpherson. chairman ing of tbe newspaper industry 
of the Newspaper Conference, and would probably be jusi 
said yesterday. as happy turning out potato 

Mr. Macpherson, London editor crisps or cornflakes." 
of- The Scotsman, said the advent - He added: M The composition 
of new technology would inevit- of managements will surely have 
ably vest more power .in the to change. To-day. too many of 
hands of editorial people. - the senior managerial posts on 
In spite of this, there had been newspapers are held, not by 
a gradual decline in powers journalists, but by a plethora of 
granted to editors by manage-, accountants, so-called personnel 
ruent. he said. specialists harbouring ohscure 

Computer-based technology theories about man-management 
would make a nonsense of the when a modicum of common 

argument that editors and other sense would do." • . . — . ... 

senior editorial executives should The Press also had to put upl Arma 8h and a spate of bombme.- 

be concerned only with editorial with “advertising and marketing { throughout Northern Ireland 
matters and leave others to do specialists, not a few nr whom 
the managing, he said. have, equally curl mis ideas about 

Several successful newspaper the packaging aod selling of 
groups in Britain were run by newspapers." 

Ship losses 
are still 
at £170m: 

«: H 

_ : j 4 J i 1 S *• 

*J*i * 






7 ? 

* f 

■: t 

By John Moore 

FURTHER HIGH ship losses last 
year and a bitter rate war. in 
marine insurance markets has 
left marine underwriters showing 
heavy- deficits, according to ihe 
Institute of London Under- 

The value nf ship -losses last 
year was about £170ra.. similar 
to. the figure for '1878, at a time 
when the premium income to 
Lloyd's marine syndicates ran at 
about £127m. Figures should be 
treated with caution because 
Lloyd's operates a three-year 
account which can iron out 

Mr. A. E. Mania, outgoing 
chairman of the institute, 
stressed at (he annual, meeting 
that the competition from over- 
seas markets for the fewer 
vessels which are working as a 
result of the world recession has 
put severe pressure oh under- 
writers, particularly on the hull 
account in non-Lloyd's under- 

The weakness of the inter- 
national hull market through 
over-capacity has left some 
underwriters unable to take on 
insurance coverage for “peak” 
risks, such as large oil drilling 
platforms, without unbalancing 
their accounts. “ It is necessary 
to obtain a spread of business uf 
tbe conventional type ol hull 
risk and here, of course, the over- 
capacity becomes apparent.*' 

Gross tonnage shipping lost for 
1977 is about 1.2m., again similar 
to '1976*5 figure, while the number 
of vessels totally lost was 203, 
compared with 208. 

Ulster may 
face Provo 

By Giles Merritt 

SECURITY chiefs in Ulster art 
understood to be assessim: the 
liketihoud of a renewed Provi 
sional IRA offensive In tbe 

After this week's mortar bomb 
ine of an Army post in South 

Insurers watching 
Australian appeal 

AN APPEAL from a decision of The company then sought an 
the Supreme Court of South oTder of certiorari against Judge 
Australia which affects insurance Allan to bring his order before 
company^ agents In many parts of the Australian Supreme Court To 
the world, began before the Judi- he quashed on the ground Thai 
cial Committee of the Privy Mr. Chaplin was not employed 
Coiincll in London yesterday. by it and was an independent 

Mr. Trevor Mori ing. QC. told contractor. 

G?afad.”i P! Kri £^r S ™T„lly The Supreme Court held .ha, 

fim wTESlreiu or $e b ChL d 7S c I Era5 e tS r e !,S \ a .d 
U.K. in which a life Insurance .ig LSlWLPffJSSl 
agent remunerated wholly by ega 

commission has been held to be ^ 

in a servant-and-master relation- i II* re P^- 

s ^jp « sentative sotn insurance on 'ts 

Lord Diplock: “Which came as ***• e7t * re . , “ 

a nasty shock .to the insurance cnn !p’* ov f r .. flim through the 
companies" medium of the supervisor, the 

Mr. Morling said that Mr. T0 J ter : aod . . u the , ob Jj aa,nrv 
Lancelot John Chaplin.' land attendance at Ihe sales office and 
salesman, of Salisbury, South ar sa, es meetings. 

Australia, claimed from the Mr. Justice King said he had 
Australian 'Mutual Provident been troubled by the fact that 
Society of Adelaide money Id the document containing the 
lieu of lone-service leave. terras of the appointment allowed 

Judge Peter Thomas Allan of Mr. Chaplin to employ suh- 
the Industrial Court of South a Rent*, hut it seemed from the 
Australia had held that Mr. documents, anfl In fact, that ren- 
ChapLin was a “worker” within resentatives had very little free- 
the terms of the Long Service doni of action 
Leave Act 1967. because from In every significant respect 
May 8. 3967 to April 23. 1975 he Mr.'Chaplin was subject to the 
was in continuous service with, continual approval of the com- 
his employers. Australian Mutual panv. The judee had been ri^ht 
Provident. He awarded Mr. to find that Mr. rhaolin was a 
Chaplin AS3.226. " “ worker ” under the Act. 

since January 12. serious con 
sideration is beinc given tc 
reports that the Provisional: 
recently received an importan: 
consignment of arms and ex 


The Royal Ulster Constabulary y, ? 4 i 
has confirmed that an American- 1 * **• 1 
made M60 belt-fed machine gur 
was used last Thursday by Hit 
IRA in Londonderry in arvr:.t •»,- 4 * * * 4 » 
ambush in which three policcnie: 1 ‘ ‘ ! 1 \ \ , f * 1 1 j 


were hurt, and it is thought tha 
the gun may be one of six MB 0 

in the hands of the Provisional- 
The speculation is that th 
MfiOs which, although cumbe 
some, have a devastating fir 
power against vehicles and he! 
copters, are ju*t part of a hate 
of weaponry shipped un throne 
the Irish Republic in recer 

Big cities want powers back 


LEADERS of 23 large cities with such., as Ipswich and Norwich 
populations between 100.000 and which failed to get metropolitan 
200,000 met in Westminster last | latus . under the 1974 changes, 
night to press their case with f_ at .^ ,e _ t V ai ? sfe r Powers 

Ministers and MPs for restora- f“ n Ie a ^ d tD . Substan I iaJ duplica- 

tion of public services they lost They say tha1 S resiJj f n<!i r |^i > f Uri ? S ' 
to the counties under the n3 ‘. res PonsibiIity for 

1974 Tory local government iShfL® ‘ffiJid ff" 1 a - n J 
reorganisation. out on s ® t T“ s . should be carried 

"" 23 t ° n * l °r Ptunty b oroueh, SSSrtS?" 

Fresh supplies 

In Belfast yesterdav. KU 
source* were making it plain th; 
the police are as concerned 1 
Jbe existence of a new arms rout 
into ulster as they are by th 
threat nf ihe MfiO machine gon. 
In addition to the M«0g it 
nossihip that the consignmer 
also consisted of fresh supplii 

i!L t xp! 0 L! vp - s and lhe marts 

homhs which on Monday iniure 

*°L dler 5 at Forkhil 
Although the RUC estimates thi 
tne two mortar bom hs fired ini 

j a ™y pos ^ from seven 
himdred yards were each < 
is lbs weight, the Provision; 
ik a y^terfiay claimed that the 
w»»re 120 Ihs each and are “th 
most nowerfiil mortar bomb evi 
u«“d in rh^ nnrih-" 

In contrast tn the lull In IR 
activity in Ui s t*r during ff 
lasi quarter of 1977, this mont 
already has shown a marks 
increase in violence. In tf 
P3M fortnieht 17 of the Prnt 
s [fin a Is' now blast incendiarb 
”, fes in which a ?ma 
^vMosivc charge sprays fiamir 
octroi through shop wlndnws- 
nave been detonated. a nd thci 
has been a resumption of ti 
Ui Tk 0 ^ explosive. 

The Prnvos’ use at the en 
or last year of incendiary ca 
sette bombs containing lit!! 
explosive appeared .to inflica* 
an extreme short ace bijt. In ti 
oast 10 days, explosive horai 
c ‘ a ! ISWJ damage In- Belfas 
Londonderrj-, Bally kelty. Cook 

butler Dunsannon and - Newtoi 

Equity-based pension funds 
rise by 45% on average 

• j fi*. 

l0 Pe 

THE STRONG recovery in stork ann a 

and property markets last year Lm 

enabled pension fund investment gone ■> S ...?~ r . orB,ance has 

managers - in general 'to " out' ravase% oTraSSLi 0 - 7 w ! , " r »he 
irtably rises in 2 F ™ n «way inflation ex- 

eqwty funds 

jlijn, i » 



perform comfortably rises in perienced ,nnai jw ex- 

pnees and earnings, according S - 1973 10 

to ficures PublLshed vp.viorriQv wnen 

figures Published vesterdav & , en men l perfor- 

These show that equity-bied tfon * la?Sed much h " hin d inlla- 
pensiem funds bad an average 

rise of 45 per cenL over the Harris°rr»h-.m° 5 e r, surve V bv 
year, while fixed-interest funds ton h ® m .u nd Partners * the 
showed a 3S per cent. Increa^ £» “rSn!" It eCtuUy r «^s 
properly funds a 23 per cent towage thase orientated 

rent. a rmprovme r nr nd The 4 re?ail we ^-^'^^Teature 

"S- f- " st per,ormanc ' 

• - per cent. arid Investmenf test as 

iinlLSSP 11 *!? 1 in «itutions 
over the 

Top Schroder Recovery ".'+9M 

Average .+« J 


Keyser Ullrpann O’ltftr <S.l 

FT-AH Shire +OJ 



Abbotstone Agriculri 

Bottom Barclays lotni. 




ffl eairnin ^ fa y far 

Company pension schemes 


Pension, ^ 

aS’-SiS?" rtfc Z » rh""f ^J'SL^Pnnv or rncr. 

.ions ehemselvfe revaluedfn ^ on Ihe ml. 

With prire Increases q1nJ n " ne pities, property anu 

Sion scb em «re"d S - l0 S, ; e " r "'C v - j.”'-/?*' O" bohairor ffciinnl 

id. with contrihmi»_. J“L y ??Ottish Mutual Mixed showed a 

Top. Prov, Mutual Pbtod 



funded, with contributions iSii l? 

□aid during the worklne url &5 Per cent, rise Tor Us client* 
the employee, it is exsemiiwh®* 2-. d _ ever ? I he ^Uom performer 

yuiuiwyee. u i s essential that " '"'uom performer 

he investment Performance otl f ,g a " d Proflper ^nrnnnv EJ 
the Ions term matches earning Inflation? nse ~ tw,co ^ 

Pro*. Mutual Cs*h . 

+ *7 

FT-AII Stocks Gilo 



■96 ■ 

Too Scot. Mutual Mixed 

A***** • 



5 & P Company 



•' i i 

i ? *■ * h 
* * i V ; 

■" '**v. 

Financial Times Wednesday January 25 1978 

: »\ .v 

* ! 

ic euphoria 

warns Barnett 


A WARNING that there Is no 
room for euphoria about the 
UJC.'s economic prospects in 
spite □£ North Sea oil and the 
improved financial position* was 
given yesterday by Mr. Joel 
Barnett. Chief Secretary to the 

"It is essential that we stop 
thinking of North Sea orl as 
offering a tax-cutting bonanza or 
any other kind of Bonanza,” he 
said at the Export Year national 
conference in. Birmingham 
organised by the British Over- 
seas Trade Board. ' His views 
indicate the cautions line likely 
To be adopted in the Govern- 
ment's forthcoming document on 
alternative uses of the North 
Sea oil wealth. 

He contended that even with 
North Sea oil, unless the U.K. 
improved its industrial perform- 
ance there will “very soon" be 
a shortage of resources to meet 
the numerous demands for~cnts 
in tax and for massive increases 
in public spending, as well as 
for new sources of energy. 

“All these demands cannot be 

met frnm the North Sea. Unless - j : , 

we believe that, and art accord- ^ unproved 

ingly, whether we put the pro- pr 2^Sf£? v ? ty ‘ . . 

eeeds mlo a special fund or not .l. : not - a r i IUr 2®^ Ji , f 

we will be on the road to disas- ^2® economic circle which some 
ter « of our competitors have suc- 

Mr. Barnett- pointed out. how- ceeded in establishing, -and I do 
ever, that in the years ahead the j?® 1 believe it is impossible 

U.K. would have “ choices which a™;*,— - „ 

have not been onen to us for ■» Another speaker. • Mr. Jack 
more San a eeneration " Jon6s ‘ general secretary of the 

He discussed 11 tbe weaknesses Tr ^Vort and General Workers' 
of toe SitTcSa? SI Uni0II ‘ suggested that visits by 

low the share St world ir a?e! JSgLT t *S? , Ml!5. 3“, h?eh 
and suggested that an explan a- I°E \ h n ^ 

lion for this does not lie in the Uiey had helped to make would 
Se! of tax or ^exianee rafe ***'** m cementing relationships 

Sinle the eartv 19M& hi «id between men and management 

-the Siort"?^?? c ^ peraUng oi 

... cantions line 

m moves 
trim capacity 


OIL COMPANIES, trade unions opposition to the Brussels plan, previously declared policy state-' 
and the Government are working He has already said that meats. 

towards a joint plan to solve the Britain would resent EEC inter- They claimed that more than 
problem of serious Over-capacity ference in its domestic energy 40 per cent, of North Sea crude 
in the refinery industry. The policies. - was being exported, a fact thal 

result could be a head-on col- Mr. Roger Lyons, national oil was undermining employment 
lision with the EEC Commission, officer of the Association of prospects and potential petro- 
The unions are concerned Scientific. Technical and Mana- chemical investment in the UJL 
that many of the 12,000 jobs in gerial Staffs, and one of those _ 
the industry in Britain are being at the meeting, said last night StrateffV 
threatened by a scheme, proposed that oil unions were “ firmly ^ 
in Brussels, that would involve opposed” to any EEC interven- P a P*r also called on the 

the closure of a number of Euro- tlon. Government to initiate further 

pean refineries. The EEC Commission last year tripartite talks with a view to 

Companies- are worried that recommended that Community reaching an agreed strategy, at 
their profitability is being refining capacity should be re- co 10 ?? 11 ? and industry level, 
seriously impaired as a result of duced by 16 per cent, to bring covering employment, invest- 1 
refineries running at two-thirds tD production levels more in line m ®pk ™ e up-dating of existing 
three-quarters of capacity. with demand. -refineries and general refinery 

For the first -time, major oil The discussions yesterday also Pobcies. 

com parties met with the unions involved Dr. Dickson Mabon, The companies are in a 

and Government yesterday to dis- Minister of State. Energy, repre- quandary. Although many of the 
cuss the problems. Their main sentatives of the Petroleum major oil groups state that no 
decision was to meet again ou Industry Advisory Committee, new basic refinery expansion can 
February 27 to outline possible and senior officials of the Amal- be justified in Europe in the 
U.K. refinery policies before tbe ga mated Union of Engineering 'next seven to 10 years, they are 
EEC Energy Ministers’ meeting Workers, the Transport and aware that more than £lbn. 

in March. General Workers’ Union, and the worth of refinery expansion is 

General and Municipal Workers’ planned to the UJC. alone. 
Opposed Union. Most oF this money is being 

The unions, represented by 15 spent on upgrading facilities 
It is already clear that Mr. officials, presented a detailed which will produce lighter pet- 
Anthony Wedgwood Benn, paper in which the Government roleum and chemical products 
Energy Secretary, who was chair- was urged to insist on two- from fuel oil. But even here, a 
man at yesterday’s meeting, will thirds of North Sea oil being serious danger of excess capacity 
have union support for his refined in the U.K., in line with exists. 

i. r with that of other currencies has 


The great success of. the 1977 

fallen perhaps even faster than “ wy pnrt year,” be said, had been 
domestic prices have risen." thT growing understanding on 

Virimic rirrlp the shop floor of the role of 

v iuuus vie . exports in providing more regu- 

Mr. Barnett maintained that lax employment. The failure bad 
the U.K. now had the oppor- been the lack of support by the 
tunity to break out of the media in publicising individual 
"vicious circle of inflation/de- success stories, 
valuation/more inflation, ail Mr. Jones was speaking at the 
leading ever downwards towards launching of a new campaign, 
demise as an industrial “Export Union ” by the Duke of 

Kent, which is supported by the! the rm S j„ 1976. 


Instead, there is a chance “to TUC, the Confederation of 
' break into a virtuous circle British Industry and the British 
where improved productivity Overseas Trade Board, of which 
leads to reduced costs, higher the Duke is a vice-chairman. 

Energy bill 
rose 18.5% 

Lawyer ‘controlled 
fraud companies’ 

SOME COMPANIES in an inter- documents to be forged to 
national currency fraud were deceive the Treasury. Mr. 
controlled by Judah Binstock, a Worsley claimed these were in 
fnrmer London solicitor and Altman’s handwriting, 
businessman. Guildhall Court Mr. Robin Auld, representing 
was told yesterday. Altman and Altman and Co., put 

Mr. John Carlile, Bank of Eng- it to Mr. Carlile that, at the 
land exchange control investiga- time of -these matters. Mr. 
tor. said the companies con- Binstock. effectively controlled 
cerned were “creatures of Mr. EIC,- the Central European 
Binstock." controlled by h i m Company for Insurance and Re- 
from behind tbe scenes. insurance and Investment AG, 

Before the court, faciDg a total Tanjuinus Trust and Metos AG. 
of 32 charges, were London Mr. Carlile said: “My under- 
stockbrokers Lewis Altman, 58, standing is based upon replies 
and Robert Carnes, 3L from Altmans that all these 

Also named • in the charges companies mentioned are 
■were their firm of Lewis Altman creatures of Mr. Binstock.” 
and Co EIC Eurosecmties Tri- ^ Binstock figured largely in 
counneree, and Judah Binstock, the affa}rs of EIC ^ It was a 

a „ , reasonable assumption that he 

Altman and Carnes plead not controlled its affairs, he added, 
guilty to conspiring with Bin- Mr Auld asked if Mr . carlile 
Mock and others between 19«4 understood Mr. Binstock to be 
and 1075 to contravene the a maQ of var j e( i ant j extensive 
Exchange Control Act and business interests who controlled 
obtain investment currency a number of other companies, 
premium on millions of pounds W bose style was not to conduct 

DO m en m- B w I? business matters from the Board, 

Mr. Michael Worslej , prose- but work behind the scenes. Mr. 
cuiing, claimed the defendants carlile said that be understood 
and a group of businessmen had 10 b e ( h e case . 
operated a “revolving fund He added that later in their 
-exchange control fraud which investigations, they found it was 
netted a £2m. profit . quite .proper for AJtman not to 
The profit resulted from make returns to the Bank of 
transactions involving £6.6m. of England on the transactions, 
foreign currency, which had because they were not the 
been passed off as investment authorised depositorv for the 
currency. These sums were then transactions, 
sent around the world to allow Mr. William Rees-Davies. re- 
the process to be repeated, it presenting Carnes, said that the 
was alleged. major persons concerned with 

Mr. Worsley said the cover EIC did not know of any connec- 
story given to the Bank of Eng- tion with Mr. Binstock. It was 
land and the Treasury was blown a highly respected company in 
when Binstock, during a search the City 1 . 

by customs officers at Heathrow. Micbael Nolan said he had 
tore up some documents he stopped Mr. Btostbck at Heath- 
pretended were of no use and row irr September 1376 because 
threw them in a wastepaper bas- he bad received information 
ket. from tbe Metropolitan Police that 

The pieces were put together he was of interest to them. 

-and discovered to be drafts of The case continues to-day. ' 

State Oil extends 
its Ninian share 


BRITISH NATIONAL Oil Cor- has obtained a proportion of 
po rati on has extended its LASMO’s vote in the Ninian 
influence in the North Sea Field operating partnership 
Ninian Field consortium, after covering the exploitation of 
a State participation agreement reserves and related facilities, 
with London and Scottish Marine The Energy Department said 
Oil Company. that the agreement satisfied the 

The Corporation already holds Government's objectives for 
the biggest equity interest in State participation in offshore 
Ninian; 21 per cent of an fields while safeguarding the 
estimated l.lbn. barrels of companies’ interests. LASMO and 
recoverable reserves. SCOT would be fin an daily 

As a result of this latest par- neither better nor worse off. 
ticipation deal, BNOC has gained 'Tbe agreement was signed 
the right to buy at market price yesterday by Dr. Dickson Mabon, 
51 per cent, of LASMO’s share Minister of State, Energy, and 
of production from the Block 3/S senior .officials of the corporation, 
portion of the field. LASMO. and SCOT. 

LASMO and its subsidiary. The Ninian Field was dis- 
Scottsih Canadian Oil and Trans- covered four years ago and pro- 
tile 1977 energy bill is based portation Company, have a 30 duction is expected to begin later 

BRITAIN’S total energy bill 
rose to £ 16 bn. last year, an 
13.5 per cent, increase over 
1976 figures, according to pro- 
visional Department of Energy 

Most of this increase arose 
through higher fuel costs, 
however. Conservation efforts 
and the slow rate of economic 
recovery meant that energy 
consumption in real terms grew 
by only 3 per cent. 

Last year final energy eon- 
sumption amounted to about 
59bn. therms against 57.3IW. 

. The Energy -Department’s 
new publication. Energy 
Management, points out that 

pay deal 

By Nick Garnett, Labour Staff 

THE Department of Employ- 
ment is seriously concerned 
abont new pay arrangements 
made for lorry drivers in some 
northern areas. 

Tbe northern section of the 
Road Haulage Association is 
not covered by a format 
regional agreement. 

A pay recommendation, 
agreed by hauliers and tbe 
unions and covering a number 
of areas— including Tyneside, 
Teesside and North Cumbria— 
breaches guidelines when over- 
time payments are taken into 
account, tbe Department of 
Employment believes. 

Road hauliers' proposals, 
which apparently leave indivi- 
dual hauliers some leeway, are 
based on increases of slightly 
more than 9 per cent on basic 

The northern region of the 
association said a considerable 
number of baullers in the 
North-East did not offer over- 
time and some companies 
might offer drivers less than 
the recommended increase. 

The effect on overall earn- 
ings would be outside guide- 
lines, however, for companies 
whose drivers regularly worked 
a fair amount of overtime. 

Mr. Jack Ashwell, national 
secretary for transport for the 
Transport and General 
Workers' Union, which is co- 
ordinating the drivers’ pay 
negotiations, said a number of 
regions had offered pay deals 
worth considerably more than 
the 15 per cent, settlement 
for the West Midlands. 

Pay talks for drivers in 
North Wales are now dead- 
locked. Those for South 
Wales have broken down and 
the association has warned of 
possible disruption. 

Sbop stewards representing 
Esso tanker drivers decided 
yesterday to join those at BP 
in imposing a total overtime 
ban from February 1 in pursuit 
of their pay c laim. 

will discuss 
national 2i% offez 


THE EXECUTIVE of the Amai- ins union might pel to : s i._- \ 
ganiated Union of Engineering federation. 

Workers derided yesterday to The executive 
recall its policy-making national initial rea> mm of :»Ii\ 
j committee to decide what action that ifie otter wa-t “ . 

should he taken following an Union> hue !-. 

employers' offer that would add annoyed thru as p.:r: t: ini- 
about 21 per cent, to wage bills, the employers v an! lit-’. i-I:-.. ; 

More talks with the Engineer- alterc:! front thv p’- .‘iei: t : 

ing Employers’ Federation are ond-a-lhml to the lino! . k 

due on Friday week. The !| 3e olant earmne-:. 
engineering union will then * lie er.iplotcrs t ■ 
. Gnalise proposals it intends to so bum? way i.- rcsM"s::y ■ 
make to the Confederation of ferentiol*t. but t!te sir 
Shipbuilding and Engineering con rends that, for" 

ne»m. over;, 

Unions in the 
sir bam led a claim 
men’s basic rab-s 

Unions on February 9. 

.After the offer last week both 
emplojers and union officials 
said it might now prove im- 
possible to agree a new national n , .. 
agreement for the industry. Pay 7 ' ,.11!. . S V 

negotiations would then fail ,rom ’* 

back to company level. 

The possibility of industrial 
action on a national scale cannot uieiuiu-r^ want 
be ruled out. however. flf - fj,., m 'per 

Mr. Hugh Scanlon, the union under pa;, -mid- 
president. would not be drawn th,. demand-; of 
on what proposals the engineer- lions. 

The offer w-iidd ii r * 
rale*- hi i‘52 ;ur: £■!•’» r :■■* : 1 
and the etupl-oers >.-v 

im i 




on data relating to tbe first 
nine months and estimates con- 
sumption in the last quarter. 

The total represents an 
average expenditure per head 
or population of about £285 a 
year or £5.50 a week. 

per cent interest m Block 3/8 this year, 
which covers about 30 per cent The licensees of Block 3/8 are 
of the field. BP Petroleum Development (50 

The agreement will give BNOC per cent); Ranger Oil (9J8 per 
access to about 50m. barrels of cent); SCOT (7 per cent); 
LASMO’s recoverable reserves. LASMO 1 «23 per cent); and 
• In . addition, the Corporation BNOC (10.2 per cent), 

and aircraft fault 
trim British Airways profit 

TUC warns 
Healey on 

By Christian Tyler, Labour Editor 

New technology 
Reveille agreed 

FLEET STREET'S first major printing ,|.i- v: : ( !..• 
switch tu computerised printing January Jl.' 
techniques was assured lust night Mr. T--d Bl.'.cl.iur:- . • 

when members of the National Group pn-din-diu! ,l»r*. vi.t. 
Graphical Association at Mirror "The \G A h:.v-; :m.. :> -ro' d ’ 
Group Newspapers agreed lo work the s>>tem .i* in-* nu-::... 
work the new system. ment wt>h<-u ’’ 

The planned production of Mr. Bill BodivIF. \»' s \ L. ;;. • 
Reveille magazine, using com- region secrorjrj. sun! : li.- u.'i 
puierised photosetting tech- last night's meeting *.l‘ c 't:i : 
nologi 1 , had been in the balance NGA chapels n:id i'lvn ii:iv 
after a last-minute dispute be- one for working the 
tween nvo unions, the NGA and “There w.i? a hu !*.»>: t: ■ 

the National Society of Opera- questioning, hut I think i;...r 
tive Printers. Graphical and the end th v v,.-re happy 
Media Personnel. honour their original 

It is expected lo appear as to operate the ne>v j-imui:." 

planned on Tuesday. ■ — — — 

The dispute was about colla- 
tion of printing material as it 
emerged from the computer. 

Reveille is the first of the Mir- 
ror Group's publications due to 
change to “new technology" 
production techniques, it will 
be followed by Sporting Life, the - Al __ 

Sunday People, Sunday Mirror 

and Daily Mirror. LOCAL AU1HURITV employers 

A joint statement -front the concede that existing rate*. >-f 
NGA and tbe Mirror Group said: police pay are “ insa.ii- ierH 
“Resulting from intensive dis- everywhere” to maintain 
cussions during the past week power standards in evirjnr.e 
between NGA union officials, submitted to Lord Edit tin •!- 
MGN composing ' room chapel Davies's committee of inquiry 
officials and directors of MGN on the police. 

Mirror Group management and The employers, the o!:ici:u 
the NGA are pleased to announce side of the Police Council, 
that production for the issue of believe that the level of i-uiue 
Reveille dated February 3, using pay “shbuld be determined by 
photo-composition techniques, reference to the level „F earn- 
will proceed immediately, and ings tn the economy generally.” 

Councils think 

a a t 


i vM-HI 

Property valuatioe 
guidelines out 

, i 



NEW PROPERTY - valuation place over changes in property 
• guidelines and a do-it-yourself company accounting. And Mr. 
“ ' guide book for practising estate Bowie explains that the institu- 
.agents were published yesterday tion is standing' aside from the 
by the Royal Institution of depredation debate. 

Chartered Surveyors. « The institution considers that 

Mr. Norman Bowie, chairman the question as to whether or 
’ of -the institution’s' asset volua- not provision for (investment 
tions standards committee, intro- properties) depreciation should 
. duced three new valuation be made in financial statements 
guidance notes yesterday. is a matter for the accountancy 
■ The first,* which has been ham- profession." ■ 
imered out after talks with the . TJ)® 1 i ^ 0nd * n0 i e ^ ets ou j , for 
. accountancy profession, details standard procedures 

recommended methods of raak- f ° r *g valuations outltmng 
•bn allowance for the deprecia- ^11 the points that should be 
..tion nf buildings in a property covered in a valuation. 
•Valuation. The note allows For The third defines the reiation- 
approaches. Valuers may ship .between a valuer and a 
either calculate the' current re> company’s 'auditor and calls for 
- Placement cost of buildings and reasonable and “responsible co- 
‘•■reduce this figure by the amount operation " even though external 

- °f wear or obsolescence o 1 the valuers are not legally required 
Property, or they can apportion to give details of their valuation 

. the open market value of a to the auditor. . 

.."'Property between buildings and In addition to tbe guidance 
und. notes, the institution's estate 

r , The accountants have waived agency committee yesterday pub- 

- asset depreciation rules nn lisbed a new booklet. “ Practice 

investment properties ' for 12 Notes for Estate Agents.” 
months while discussions take Feature, Page 16 

the need for continuing wage 
restraint were upsetting difficult 
pay negotiations in the present 

THIS YEAR British Airways ex- British Airways had also felt British Airways employed 142 round. TUC leaders told the 

peets ip make a profit slightly the competitive situation caused people per lOm.-ton miles com- ^ flanc cnor yesterday, 

below last year's “very impres- by Laker Airways Skytrain, said pared with 115 for European air- Mr. Denis Heaiej’. whoa month 

sive ” one of £35m„ Sir Frank Mr. Ross Siainton, deputy chair- tines and 71 for North American ago himself advocated some per 

McFadzean. chairman, told the man and chief executive. ' airlines. inanent system of wage determi- 

House of Commons Select Com- Skytrain took a fuller place The British Airways’ figure was oation. was also warned that the 

mittee on nationalised industries on the North Atlantic than high because the airline did Government's use of sanctions 

yesterday. planned in the original expert- third-party work. But British against employers for exceeding 

Without three major problems, mental scheme which was to Airways’ personnel costs were the 10 per cent, guideline was 

he said, the figures for 1977-78 ^ av P flown from Stansted. lower, averaging 512.6 per ton having the opposite effect to that 
would be almost comparable These factors and continued . l ? ile T T^ >inpa 5 e l 1 J'? ti ? ^ intende< *- 

with the £35m. The airline bad overstaffing had forced British ct, wll, t 51 , i n “ ur °P B - . These points came out in what 

been hit by cracks in the wings Airways to consider staff reduc- roveaieo plans to is probably the last pre-Budget 

of its Trident aircraft, by tbe tioos. replace the Prosent 12 aircraft meeting between the Chancellor 

air traffic controllers’ strike and - The real problem, said Sir “I raedibers of the TUC eeo- 

by tbe engineering dispute. ■ Frank, was how to convince Md^riStanf hSS nomics comm,ttee - 

There had also been difficulties staff that British Airways had a total of TO StwoK Mr ' Len Mu I ra - v ,' TUC general 
on the North Atlantic routes t0 change from being a low- ^5 carrying ^ secretary, said afterwards that 

which had nor produced the good *?ge, low-cost airline to one 200 passengers wouldbe neeriwl ^ 5 ecent ^ ate , of , s ,P eeches 
return of other routes. Profits a higher wage and competi- Xo replace 8 existSe shorthand 0ut « pay after ' , •J vere 

from the cargo sector had also tive costs strncture. mediumilul rtre«?t SZh zs Se l ° ta,ly coumer-productive.’’ 

tended to drift downwards. A survey had shown that Trident- ,.S e V ,ent on : . Tffie situation is 

difficult enough in the complex 
negotiations that are going ahead 
now." If unions felt there was 
some sort of sword of Damocles 
hanging over them, they would 
be less willing to settle “ at par 
ticitlar rates.” 

Mr. Healey had replied that 
the speeches had not been 
orchestrated." He acknowledged 
without comment the points put 
to him. 

The framework for the hoiir- 
long session at the Treasury, 
was the TUC’s concern aboul 
unemployment, which Mr. 

Polish ships formula 


SHIPBUILDING union leaders to British Shipbuilders tu-day. 
met in London last night and More pay trouble broke ou; . r. 
after three hours produced what Ihe Tyne yesterday, where cu;n- 
was described as a formula for peting claims between b.iiic-r- 
ensuring that four of the Polish makers and outfitters al S.var. 
ships would be returned to the Hunter have lost Lite group sews: 
Tyne. ships from ihe Polish con tract. 

Mr. John Chalmers, chairman Yesterday's development v.a.- :• 
of the shipbuilding committee of decision by a meeting of 1.0m: 
the Confederation of Shipbuild- boilermakers employed b> liv- 
ing and Engineering Unions, six yards in Lite Tyne Repair 
said the formula had been unani- Group lo impose an immedia'iir 
mousey agreed. It would be put overtime ban. 

Sydney air 
fare cuts 

.Financial Times Reporter 

AUSTRALIA has postponed a 
decision on requests from 
British Airways and Qantas for 
cheaper fares between London 
and Sydney. 

Mr. P. J. Nixon, Australian 
Federal Transport Minister, said 
after talks with Department of 
Trade officials that no decision 
would be made before April. A 
review of Australian aviation 
bad to be completed first, he 

Last autumn, the British Civil 
Aviation Authority considered 
proposals from British Airways 
and Qantas wbich hoped to 
start new low price fares from 
January 1. The fares would 
start at £395 return on the Lon- 
don to Sydney rim. off-season — 
a cut of £55 on to-day's cheapest 

In the raid-peak season. The 
fare would be £475, a red action 
trf '£75. and £530 in the peak 
montHs of January. August 
September, October and Decem- 

Late run on aid for 
clothing industry 


Stamps depict 
energy sources 

THE nation's energy resources 
are the theme of four new 
stamps which go pn sale at post 
offices to-day. 

■ One at 9p highlights oil, and 
the des’gn depicts a production 
platform in the North Sea. The 
I0£p Stamp features coal, and 
shows a modern pithead. The 
Dp stamp represents natural gas 
by. depicting a (lame rising out 
of the sea and a 13p stamp 
represents nuclear power by a 
diagram or a uranium atom. 

They have been designed by 
Teler Murdoch. 

BRITAIN’S CLOTHING industry £15m. bad been taken up. 
now looks as though it will, after Department officials announced 
all, take up most of the £15m. before Christmas that at the 
made available under the In- start of the month «6 applica- 

dustiy Act aid scheme, following t>ns had been received for pro- ? ^fnoo by 1981 even^with a 
a sudden surge in applications at jects costing a- total of £33m. and Lowth ratJ of 5-6 e ner cent 
the end of last year ’ involving possible assistance E^unempIoved wo?ke r now 

The Department of Industry from the Government of £7-2m. fort about 000 a vear fakta* 
office in Manchester received 450 The Department has yet to into account 

applications in December, the assess tt'e total cost of projects ThV Chanroilor promised to 
last month for submissions, involved in the 450 new applica- support the TUC to resisting 
equalling the total to the pre- tions received to December, but Xt Mr II mv called *5 
ceding two years of the scheme, estimates put the figure at a depredations ofBrosSs on the 
The sudden surge would seem further £30mv almost certainly Temporary Employment Sub- 
to reflect renewed confidence by using up all the remaining funds The ComiJSi Markrt 

the industry to future prospects, to the scheme. Commission is arumSS that the 

It increased its exports in 1377 A similar late response came subsidy due lo expire at ihe 
by £200m_ to over £600m^ a m where a large end ofMardi. is ari ilticit subsidy 

raator success. ^ J ^ of the fund made available for certain U.K. industries. 

Tbe scheme was launched, at to the industry was taken up only p or Uj e res r the economic 
first with funds of £20ra.. in an in the closing month of the committee spelt out the details 
attempt to bring about Stimctural scheme. of jts demand fQ| . a mn 

changes in the industry, enabling In the case ol clothing, some budgetary boost — a figure that 
it to improve productivity and of the delay in applying may Mr. Murray described as 
reduce its very large trade deficit have been- caused by companies M modest." The TOC wants 
—over £270m. to 1976. waiting to see what new controls £ of that to be taken up 

The funds available were on imports would emerge from by introducing a reduced rate 
reduced. • after initial poor the Multi Fibre Arrangement 0 f income tax of 25 per cent 
response. Improvements were talks, which ended only to on the first £L000 of taxable 
incorporated in the working of December and appear to have income, 
the scheme, but by early secured greater protection for 
December less than half the the European textile industry. 



Jm n 

Jan 78 













Jan T 

Jan 78 






Jan '77 

Jan ‘78 






Jan 77 







Jan'77 Jm 7S 

6-6'; 6-8 



Jan 7:1 JSr. Tj 
5-2 "l 5-7 




Jan '#•. Jm ’7" 

5-3 5-3 




Jan 77 1 Jji ' 7.'.! 

4-7 1 4-9 : 



Jan 77! J.a 7f • 

5-0 1 5-C i 




ftltj Am 771 Ain "Tot 
ifl \S-£ I 


Regional differences in the 
level of anempioymenl have 
widened again In the last 
monlb — most clearly in North- 
ern Ireland. There the total 
has jumped hy 2 per cent, and 
tile jobless percentage among 
adults is more than 75 per 
cent, higher than the U.K. 

Over tbe last year, tbe 
regional gap has widened con- 

siderably. While in Ihe U.K. 
as a whole Ihe humIiit or 
adnlts oul of work has rise:: 
by 6; per rent., there ha: u 
been increases or 15 per cent, 
in northern England, 121 por 
cent, in Northern Ireland, ill 
per cent in Scotland. Ill plt 
cent, in Wales, and just under 
11 per rent, in Yorkshire aiu; 
Humberside. However, the rive 
lias been just under 2 per ecu;, 
in south-east England. 

Birmingham air terminal 
go-ahead expected 

Talks to-day on Ford 



REPRESENTATIVES OF the ment and national union officials of a short mass meeting in Liver- 
1,000 pressroom workers al to-morrow. pool not to meet again untii a 

Ford’s HaJewood car plant on Mr. Grenville Hawley, national fortnight's time, unless t'ue posi- 
Merseyside who yesterday voted automotive secretary of the Uon laryelv changed. 

BWMHIT APPROVAL is linked fteterminn, t „ UK »£&£$ -‘SSSS 

etpected for West Midlands by a waJkwayTheterinioalwill will meet Ford management to- Midlands executive member of will be the first talks berween 


w2* 92HtiP^2L-S , SIS »“•¥»« P^ucUon.^rth.nbnn, £ll;, S 

ing of £S0m. toward the £4Sm. last night 
protect Work may start to 1981. put aside 
The National Exhibition few years 

Centre seems unlikely to have its ject. A 60 per cent grant from \ up revised proposals for a fur- strike lnnkr»ri r..*.thcr 

preferred sile. vould nava the Government in expected. | ther nF d,s ?' ,l ' ! " llh s « 

inspectors about overall^ 

y. 'invv A, i. • 

Financial Times Wednesday January 25 197S 

1 AM 

) ] 


)LITrCS ] 

Thatcher sees double Mulley faces bitter 
disaster over jobs t0 increase defence 


Left on plan 

Tories seek 
to counter 
food prices 

by IVOR OWEN, PARLIAMENTARY STAFF THE LABOUR Left-wing y ester- contained in the document 

day mounted a savage and sus- “Labour's Programme *78," -was 

■VI Til THE Januarj’ uaemploy- Mr. Callaghan did not seem had to be turned to make Britain tained Commons attack on Mr. now a dead letter. 

,K-ri: Gsures, including school unduly disturbed. The label competitive. Fred HtUley, Defence Secretary, Taking a firm line with his 

covers in excess of 15m.. the “Prime Minister oF Unemploy- “ Both sides of industry under- over Government's proposals backbench critics, Mr. Mulley 

5 rin.e Minister came under ment" might catch a headline stand what needs to be done and 10 defence spending by reminded them that defence had 

It 4 '-:.:' 



•• Von ’till <»fi dnwn in historv ^ situation, he declared. employment,” be said. Mr. Frank Allans (Salford E.), pects are improving; it is right 

>s : lie Prime ^Minister of Unem- Though it might not afford any Mr. Jim SHlars (Scot Lab, one of Labour's ton&standing that we should plan to confcrf- 
•'ii-menf* she thundered, amid coni f or t to Mrs. Thatcher, he Ayrshire S.) underlined the un- opponents of defence expendi- bute to the increase in NATO 

• L'co.j’Dunvioc salvo of Tory was ready to fire off a prophesy, ease on the Government back- ture, accused Mr. Mulley of defence efforts, made necessary 

Tv.dd toMr CaltaatoSi have a feeIins *5* we ^ benches by recalling that when “shoving contempt fOr the by the marked and continuing 
iw^mre there' was be in Power f<lP ^ next ten ' unemployment topped the lm. British people and the Labour growth of Warsaw Pact military 

souradic !Jiioin" from the *' ears ' t0 ° " , „ . mark, for the first time after movement by flouting the elec- Power. 

Ouvorniiieniback benches Charles Morrison, (C„ the war. while the Heath Gov- tion pledge to reduce arms ffis remarks merely upset the 

’ Devizes) still wanted to know eminent wa$ in office, the Par- spending and actually increasing Left-wing even more, and led to- 

Mr*. Thatcher opened the ex- why Britain's unemployment re- llamentary Labour Party, staged it" some threats that they -would 

riunres wsth a double-barrelled cord was worse than that of a demonstration in the Commons . _ „ vote against the Government 

is vault. Nut only had Government France. West Germany, Italy and which led to the Speaker sus- when the defence estimates for 

produced a serious nse u,e U.S. pending the sitting. 5 i!!L£«h 1978-79 are presented, 

in the n-jnihcrs out of work but The Prime Minister explained Now. with unemployment over In bis statement on the 3 per 

uvj iiadalso resulted in a short- that because of the deep-seated i.g m ., there had been scarcely a JEfuld tell Dr cent ^creases. Mr. Mulley 

i-uc ..f skilled labour, she argued, nature of Britain's economic ripple of anxiety or concern and SSKeamU made *** qualification that the 

••You have achieved the dis- problems unemployment had from the Labour ranks, he said. ShSf rise planned for the year 1980-81 

a : tr.ii:s> double, she told the been higher than m West Ger- This brought a hasty assur- 19tn S bead of Nato to get stuffed. fo e subject to review in 

Mr. Mulley ... a firm line 
with his critics. 

i raining programme ever 


. 8y Richard Evans. Lobby Editor 

M? SKS bunS? (Lab., Old- and other Conservative leaders 
-W iTroSSaSed that the sought yesterday to . counteract 
wasgoing in a the growing Government cam- 
SSffi^icUy opposite to that paign that the Tory par^ should 
. ptiKd to Labours manifesto be blamed for higher food pnccs 

at^e laB^eooa. e g (Labt> ^Both Ministers and Opposition 
rifiiwS) argued that a con- leaders fully realise the value in 
talhment of defence spending electoral teffns of 
■ £L.Sbn. for better propaganda battle sjmrked off by 

hS!S.e SSth. social services the Government’s defeat at the 

“sutM^MiSiey poined out that SSm die reale o? devaluafftf 

S&2£ WfiVFS 

cSt-^whUe civil programmes claiming that the Government 
md increased by 6*6 Per cent, bad led the Opposition parties 
“ 1 ^Sngrily. Mr/ Hugh Jenkins into a carefuUy spmt^ trap. and 
(Lab* Putney) told him: “In not that the Issue of prices could now 
-carrying out the party’s election be developed in Labour’s favour 
pledge/you are driving a wedge In the run-up to a General Elec- 
between the party and the tion campaign. 

Government Some Of ns will Ministers lost no time, after 
not be able to support the losing their fight for a de- 

— n „,„. wutt*u ut au Wl w „, lon „ Government to this coarse." valuation of 5 percent, and con- 

Prime 'Minister. "* v many or France for most of the ahee from^Mr." Eric* Heffer The Tories accused the Left- theTiight of^conomic^droum^ Mr. Mulley ... a firm line ' ' Mr. Mulley retorted: “Subs tan- ceding 74 per cent. on_ selective 

31r. Call Julian again used the last decade. He welcomed the (Lab., Walton) that had he been wingers of being - anti-Western " stances at that time. No decision with his critics. tial reductions have, been made prodnete, in purnng dim op 

c>:i«i*n ativo document. - The fact that many people had now given the opportunity, he would in their views. Bat, for -the most had yet been taken about subse- -in defence. In some quarters, it the C^nserva lives. uoerais, 

liis-at Approach." for cover. He shed the belief that there was have produced not a ripple, but part, the Opposition kept aloof quent years. „ . . ... has been argued that too great Nationalists ana Ulster umon- 

ref.umted Mrs. Thatcher oF Its some “magic key" which only “a positive explosion.” 1 from the battle and allowed full He explained that, as a pei> ■ h n » 1 reduetion has been made. ' ists. Mr._ Callaghan 

.•iiat ,, '.u<?nt Uiat the fundamental rein for the Leftwingers to pur- centagtTof gross domestic pro- wax5 1 t ® d J? k S? w J 1 ^ J2S? He rejected criticisms from gleefully in Jie oommons that 

itish econ- . sue their vendetta against Mr. dnc tnext y£?s estimates would co^d addeve its object of multi- ^ Tom Utterick (Lab^ Selly there should be. a monthly Tory 

, be com- * Mulley. be low« San tiiose oridmlly aatio ? al - disa ^ a ? e ,2i W S D £’10ak) that the Government was price index to show the cause- 

sated and cavma wrraluxA According to Sir Ian Gilmonr, announced for tfaecurreutyear. creasmg lts own defence bud Bet « pilltif- armaments on arma- quenees iof the vote. 

;d in less \JWGU IlDQS S01TI6 V3.I1I6 Tory defence spokesman, the in 1978-79, they would represent Mr. Mulley replied: “I am meats ” and was prejudicing its Mrs. Thatcher countered in a 

T tougher line taken by Mr. Mulley 43 per cent of estimated GDP, absolutely certain that if we chances of success In forthcom* speech to the National Farmers 

which Mrs. « M T -1 — showed that thepolicy in favour as against 5 per cent, of GDP in were to make unilateral re due- tag UN defence and disarma* Union In Loud cm by pointing out 

ctly well! 1H I m ilk laUJK report of f,Artiiier c* 113 i 11 armaments, 1977-78- tions in defence, there would be inent discussions. SireranienSf^rSoSS^iSS the 

iployment BY MARTIN DICKSON w ‘■‘1 A • 1 ' Tories’ amounted ^at most to one- 

le^UriS? R DAVrD BKf - J or f^ Hr. Owen said it could be C11GTIPPTC I A JlVI’llfi SPort oTSRli. -XrtttS 

e poucJes Secretary, yesterday made clear argued that the more complex I I W CTI I 1 1 1 wV W U T vll* from a Government wWtfb has 

his opposition to some of the the world became, the greater “ ^ ^ w already devalued the pound in 

fas equally raa in recommendations of the the demand for overseas repre- . . your podtet by 46p.“ ' 

r>’ leaders Government Think Tank’s report sentation. Redaced diplomatic *■ ’ *■ She argued that the defeat was 

on Britisb overseas represents- representation was not a neces- Tr/V 1 A 1«AT AWAMfillWI Jl/WB’lJlVWfi not only about the green pound, 

of skilled tion. But there was also a good sary concomitant, in all areas. VflBI P 1 1 1 iTl fll 111 it H II It wasan expression of no ctm- 

ne specific deal in the review that was very of a decline in power. He fav- f VwV M. VI IllUl 1 B B id 1 fidence in the Government’s 

a s j va,ua ble. he said. oured British diplomatic repre- agriculture policy. The Tories 

admitted. Dr. Owen adapted a far less sentation in all countries that believed that better prices Tor 

ries, made hostile tone than many other were members of the United BY IVOR OW0I farmers, albeit at the cost of 

nn critics who have appeared before Nations, not least hecause -^p s denied an oppot- cussion or a decision on the Mr. Cunningham led an tish Government and controlled slightly higher food Prices, were 

o e all the Commons Select Committee tunity to vote on a proposal that attempt to attach a percentage unsuccessful attempt to persuade by it in the best interest of producers, 

' V™ , a , n ex 3 mi ning _the report. ber of the Security Council. ^ Government's devolution qualification to the referendum Mr. Michael Foot, leader of the • ^ separate Civil Service, he consumers, and the nation, 

fa uLSS 1 ^, 1 2k? ~ dan S er .o £ Dr. Owen was sceptical about plan for Scotland should only verdict House, to make an immediate contended, would put at risk the “The Minister (Mr. John 

..nriaZu "T 1 ? ™ e repoi:t . as ir e a merger of the Diplomatic become effective if approved by Under earlier proviaional announcement about the un ]ty af the UJC A separate Silkin) should learn that you do 

rer unoer- -na not tacKung some of the service with the Home Civil at least 40 per cent of those arrangements, an amendment amended timetable which tb®- Executive. a separate Assembly, not feed a country by ruining Its 
i« ♦ t 38 re P | r ® scn ' Service. At the same time, be entitled to vote In the promised tabled by Mr. George C an n in g- Business Committee was an ^ a separate Civil Service farmers. Our farmers are being 

_._y. “U®“ ^? ars “J 1 ** felt there should be a greater referendum on the issue. ham (Lab., Islington S. and Fins- rumoured to have approved. would provide all the machinery asked to compete, not on equal 

~ Government backbenchers 

5!? wanted to know how Britain- 

■.le.'.knewifs of tbe British econ- 

u.ay in its failure to be com- ' 

could no: be remedied in less Owen finds some value 

mao a decade. 

Thatcher knew perfectly well. in Think Tank report 

So it was “sheer party politics " 

lo succest that unemployment, martin ur.rjun 

'S""Ss S 'due Pi ?D 3 Si DR DAVm 0ymi - For “en Dr. Owen said it could be 

\ rnLmmont ^ Secretary, yesterday made clear argued that the more complex 

c Vi n ■ . mu- * „ his opposition to some of the the world became, the greater 

Tbe . nine MUnster was equally main recommendations of the the demand for overseas repre- 
ununpressed by the Tory’ leader s Government Think Tank’s report seotation. Redaced diplomatic 
charge that tbe t,ovemmeot had an British overseas representa- representation was not a neces- 
prnouced a shortage of skilled jj on g u t there was also a good sary concomitant, in all areas, 
labour. There were some specific d ea i in the review that was very of a decline in power. He fav- 
exa triples of shortages of skilled valuable, he said. oured British diplomatic repre- 

nicn in a tew areas, he admitted. Dr. Owen adapted a far less sentation in all countries that 
but liuvermuent inquiries, made hostile tone thmi many other wore members of the United 
a? recently as a week ago. critics who have appeared before Nations, 1 not least hecause 

Dalyell suspects move to avoid 
vote on referendum demand 

, . .. - u». G -w - to . — - w. ham (Lab n Islington S. and Fins- rumoured to have approved. would nrovide all the machinery asked to compete, not on equal 

mvestieaMnn 8fie ^ other iaterchaoge between i the Diplo- This possibility emerged 'lat hup), deliberately dedgned to He ^ supported by Mr. and the infrastructure for a terms, but against heavily subsi- 
nvesugauon. matte Service and otaer depml- Westminster last night when test the Governments ichum taat Daiyell. who bluntly asserted separate State. dised competitors, and if our 

past 13 years? 

L" j * i,™ j“ erern,,nea 10 the number of British diplo- vote - must give a “Yes” vote in the Government was following The Government believed that a fs aea , tna J „ W3S M ncumo- 

i u Th.t^f d ' , t * “ atle Posts overseas and theV The Foreign Secretary felt it He referred tor rumours that referendum if tae devotatiS normal procedure and practice! there would be clear advantages thC t P ?lv, 0 I 

Mill Mrs. Thatcher stuck to tegration of the Diplomatic Ser- was necessary to examine the the Business Committee m P ia n jc to be implemented. The report from the Business in having a unified Civil Service, !“* Government lo pretend that 
i,or uuns IVas not one of the vice into a unified Civil Service, career structure of the Diplo- charge of arrangaments for it is thought that a low poll in Committee would- be available particularly in the opening years the difference between a 5 per 

reuMtns why Britain was affected He had be.en surprised to find matic Service. There was a allocating the limited- time avail- the referendum wmilri make it to-day on the Older Pauer of of the new Scottish Assembly cent a 71 per cent. 

.h deep seated economic prob- some of his greatest differences danger of young, talented people able for discussion or the Scot- highly unlikely that the 40 per the House. This was th«^ normal Mr Smith stated- “A unified devalaation would increase 

l«»w the fact that Labour had with the Think Tank were on becoming frustrated by a bulge land BUI had produced an £^7 would 4 form CiSf’aSS teiaS; to h?2!2 vrices significantly, 

been m power for 10 out of the the question of Government of 50- to 6d?ear>olds at the top pended tpe table which would Stisfied Any suggestion that something SnunSariTand^mra 0 . Mr> David Steel - the Liberal 

p.iat o years. machinery. • of the service. have the effect of preventing dig- a further amendment, sinister was taking place — in A single . service will, at least teadeiv whose party also voted 

designed to give the people of the fact, the Government -Is in a in the Initial years, provide the f0r “gner devaluation, 

n ■ ■ ■ Orkney and Shetland an oppor- minority on tbe Business Com- devolved administration with a ^ rgu ? a 11141 . t0 *®t sections of 

MuOnAI^Callll BKl/A^f tunity to opt out of the devolu- mittee — would be /misleading wider range of talent and ™ 1I H n g go into depression for 
| Ol ||U ^UB VCrv Hon arrangements is also likely the House. expertise.” the short-term aim of picking up 

B- W to be passed over without dis- When debate on "the Bill was The number of people employed was 3 gravely damaging 

cussion as a result of the changes resumed yesterday, Mr. Leon in the Scottish Executive would P° uc y- 

proposed by lie Business Brittan, a Conservative spokes- be a matter for the' Executive 

Committee. man on devolution, warned the itself. But the salaries and con- T?iill 

The amendment was tabled by Government against seeking to dltions of the integrated UJK. J’ (111 |*flFiVf- 4 n I 

Mr. Jo Grimond, the former establish a separate Scottish Civil Service would continue to vvuuvul 

Liberal leader and MP for Civil Service, owing exclusive be dealt with in the same manner , Tl _ 1 • 

Orkney and Shetiand. loyalties to the devolved Scot- as at present OH l)Pll7P 


essman Readership Survey 

• • ■ v v - r 


EBRS is the European Busin^sman Readership 

• ■ 1 1 III* l ■ _ I I I™ V 

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Committee. man on devolution, warned the itself. But the salaries and eon- Pull 

The amendment was tabled by Government against seeking to dltions of the integrated UJK. I' (III Ll)n\rl1F 

Mr. Jo Grimond, the former establish a separate Scottish Civil Service would continue to vvuuvul 

Liberal leader and MP for Civil Service, owing exclusive be dealt with in the same manner _ I • 

Orkney and Shetiand. loyalties to the devolved Scot- as at present Oil ll€llZ0 


Debate on clauses lost PPSS 

wpvrwww future of Belize without the “ full 

consent" of the people of the 

TS Central American colony. 

. ana gone iorever 

m -mrr ^ w t that the Government planned to 

_ • ■ “carve up ” the country between 

BY RUPERT CORNWELL Guatemala and Mexico. 

TO START this article on a without success. None had been bv the measure, and cononniv Ula I part °? 

cheerful note; the end of the properly and specifically dish on an amratora“? re ?tag ftS the rert^relv ^ mnnd^f. 
Commons committee stage of the cussed, since the evening had Scottish Executive from wtiifZ Thi»ro d i m ' 

Scotland Bill is in sight Of been spent on an amendment baS pay Scy T /Uf Jl ?-' ** ?■ aJarm ; 

course, this is just the sort of which would bave given indepen- The wider issnp is whothav ■> mim 2£ a,rs s P°^ e ^ 

frivolous remark which will add dent revenue-raising powers to guillotine* 1 is the M 5^, Jeremy Jhorpe, asked 

to tbe little war of words as MPs the Edinburgh Assembly. Nor dealing with so thl a P .®^ urance tha t no part of 

and reporters accuse each other will they ever be, since they are subject To whirh^n™^ J? country would be 

of not giving this momentous “money” measures of the kind reolv “In th#.^ ahL»»« e ? ust ,5' a te Guatemala or Mexico, 
constitutional Bill the attention which the Lords are barred from alteniafrvp ■ > » nce «r"i. ^ Mr. Callaghan replied; “It ' 

it merits. changing. Wnd of TiSit m, V 'r°Vl d ** fw the House 

The troth of the matter is. Of the Bill’s S3 clauses and 17 aiw cSteoveralJffeiwSi*^?* 1 ^ Gomm0ns to m ake a declata* 
though, that the 10 days of schedules. 63 have now been measu rewouSbSS ? on ° Q matter." It was 
committee work have so far pro- approved by MPs. Of those, two- t0 death pvph whan important to secure Belize’s 

vided a pretty uninspiring spec- thirds have passed without dis- case f ' nTnh - ,n borders obtain a proper 

tacle. It is the same sinaU group cuMion Lords ReformBm nf with Guatemala 

of MPs, mostly passionate , But these figures, like the com- j™ frnn . 1 . 969 - tbe before independence, 

opponents of devolution who do P^nts which they have ™ f ™ nt ^ches ^ basic 

virtually all the talking. In- generated, are not quite what 77 , TT\,fri Ta a % 

variably, the debate moves away they seem. Clauses and amend- • ?“ J* toe ^8- xHVl>3 iSl|IW2Lrk 

from detailed examination of raeots for consideration are care- 8® sU “’ “ade forcefully In the , u . ai 11 

specific clauses and back to the £ ul1 ? Scraped the all-party yesterday by Tam . mlp 9nnmmPPl1 

itigument of principle. Business Committee which looks Dalyell, that the Government is 1 dtMUUUULI.ll 

The issue is very important legislation going through “f^P^ating the business com- BULWARK is to be made 
but points of view are too well l^--h^ use ' - indl Y’ dual e Jk!L5 avoid potentially fulIy operational again later this 

known by now to arouse much S-nn?/ 1 i? mSntS^SSS^m^ 8 ' funda ' de , ployed iQ a Primarily 

further curiosity. To add to the SSSJS? 8 in the ^ -submarine role, Mr- Fred 

growing sense of unreality, what SmS Macintosh John ”““ ey „ DeEenc e Secretary, said 

we have ' witnessed Is, in many d Berwickan^ if ab0ur MP for in Jbe Commons yesterday, 

respects, a phoney war. The real T„ _ a" _ a dey ^T.^“ i '? r ® ore convinced . He expiaingj that the decision 

battle will chine during tbe InOlgHatlOH enSlnt most Gov ' r ad *** n t; J ken ™ Pan of. the 

referendum campaign ' in Scot- , too manv tSl?^ u" 51 * 6 * GoTernments response to the 

land, probably this summer. Nor are there many spectacles read ,Tf9, y s . ma ^e “second Jot m unproved readiness" in 

But as I say. the end is in !° mat ? synthetic outrage com^ftee J a9 * clies ^ urin 8 tbe NAT 0 forces, 
sight Yesterday and to-day are JJ™ ' whic ^ * to oppo- ^ on . 

the Ilth and 12th of the 17 days 5111011 w ? en „ a fiO'Hotine Is «« ^lasing w • . __ - - 

allotted for the remraittee and ^? n ° unc f«rt’ h N ° 1 5 atter * j? Another 3 gS - , . XvlOtOD trS'lllltf* 

report stages and third reading news could have been predicted thfK t*^ er ** for “•'•y 11 l * aOUlC 

of the B11L If Mr. Foot. Leader n ° niatter w ^ “ u ^£, e a .“»uch tougher Ku 

of the House, goes on allowing Jbat they would do it themselves aJways a , * leRlier 

two days a week, proceedings !°- t 5 0V ?? imen V ^5® alr i ls paSihiiitv A LAB0 ^ MP Mr. Marcus Upton 

should be wrapped up in mid- “1“ of constitutional th^dail^BeSJS*^ !° b ™ ak up ™ P r{Use ^ by life Prime 
February. SjSti, «* in 5 llt 10 Par _ Uament -" that r^llv 8 ^,^ °! deba te, so Minister last night iof his 

But It is not really this relent- and so schedules ^were^ pnn^ift 68 ^ aad fai^rful and assiduous" 

Ip.u sf-arpp] rfb/t nmorpcc 0IL finery time, the Govern- “ 5®. w ? re Btioranteed at membpruhtn ^ ! 

... t 



ll,) !Ui! I ... 

' 1 s ‘Ul:Vfc* 

^Hhi 4 ju 

l? h 

“insult ’PaHSS? “^.■Wrt« ofd5S£S Minister last n^h Sof hi. 

80 «bldtLS Uy weS ta L C , la,JSe8 «! nd ^asiSuous" 

mry time, the Govern- ^ guaranteed at membership of the Serf 

accused of not alfbwing ?h?^ deb e ate before a vote. Commons. P H 

less scarcely-reported progress ? overn ‘ l«^«irS3LJSI2“ teed at T mh ^ 

that has prompted Georoe Gar- “ ent * 8 of not alfbwing i n J h 50 "^. d e b . ate before a vote. Commons, 

diner, MP f Sr Retafte and ^ ^bate. 2±«"Sm. one may “ His v 

placable Unionists, 
a “Parliamentary 
Francis Pym, shad 
the House, to attack 

Sea 2 h9 3 s whor e life has been 
L Without Si* d ^ P0n s^ice to otbert,” 
t its S e 5I r - Calla Shan said at A 

y^A\ ) . 

me nouse, 10 auacx an "unaecept- a ueunerate ertort i n o 1Q terest- next Benpwt 

able and unjustifiable ,, pro- ?° .Siye their inbuilt majority P^^bilitieB are scotchedaa Mr i intS 1 4j e L tton ' 
cedure. What angers them is the in the Lords the heart to make their round up the canstitaehlr Te P^fs t 

very mechanisnT of the gnillo- merry with delaying tactics anri bars> r ^ui?m£ s,nce 1845 ' 

tine, which inevitably means . But those who have pleaded thSn iffSSfli f 11 ,?. shepherd ^ 
whole batches of clauses go ro vain with Mr. Foot, Leader ^ lob by. Pmcrk w 1 ^, 

through undebated f, ? r more ment^S "“JgftaWe achieve- '-'fOSSOOW DlCJ 

Those • protests came on ge BilL .do have a strong case. S doS „ j F 

January 11. the # morrow of the Many -of the legislation’s raos t ite ?£*2L Bo °*' whatever rGlGCteCl 
worst carnage left sq far in the important parts, dealing with Fori » cm , ' ; 

^ l tip 



I Regisfsred OfficejTne Fmanda! Times Lid, 

Bracken House 10 Cannon Street London EC4P4BY. 

^R^stsred in Ehgland, Nc. 22?5sd 

aevoiunon minister. omrau- -javernment bas been CZL. demands v*hvv. mine i-nras 

tenre. Between then and 12J8 defeated twice on minor Ind h£J^ nta r y J mana sement of 1 ^ ^ 

ajm- the heads of 19 clausre fclat- largely symbolic, points; the first i J l? deed * The trouble Mfaswrrene and Fer* 

tered into the bosket On five of on Its assertion in the Bill’s ^ ^* n to watch ^ j sa,< * Crossbows were • 

them, the Tories or the Scottish preamble that the unity of Si S 'VltoSIS Jfii°^ ade , for criminal nctivU 

Nationalists forced divisions, but kingdom would pot 

irresponsible or young people, • 

_ • — T . r • >o 

■ • -D* ^ jr. 

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WHsmdal Times Wednesday Canary 25 1978 

radial Pane 





Extracts much more 
eat from fuels 




1WLY. but surely, years oE 
k in Britain on a method of 
raclin? much greater amounts 
beat from fossil fuels by 
ning them in a granulated 
in, for instance, within beds 
sand kept in constant motion 
air blast — fluidised beds— is 
'ins off. 

v major U.S. boiler plant 
nufocturer. Johnston Boiler 
of Ferrysburg. Michigan, has 

ned a licence for the use of 
technology with Combustion 
;tein^. a company formed some 
ie ago by National Coal Board, 
itish Petroleum and the 
Tiuna! Research Development 
rporation to exploit expertise 
the techniques acquired by the 
rtners over the years. 

Nldiiouai Coal Board itself is 
the process of building a 
■ge fluidised demonstration 
:nt at one of its sites and a 
L licensee. Babcock and Wil- 
n;*s a powerful demonstra- 
m plant of its own in operation 

Johnston Boiler tried out the 
neept during a preliminary 
preach, building a 10.000 Ibs/br 
.'am raiser at Ferrysburg, 
rich has been operating for six 
anthv and has been used to 
v out firing by gas, coal and 
I. The company is now offer- 
* a range of multi-fuel boilers 
roughout the U.S., using the 
tidised bed principle developed 

The bed is made up of sand, 
hich constitutes over 90 per 
*nt. of the material present, 
a is sand is fluidised by forcing 
rce amounts of air through 
■nts in the bed base by means 
' powerful fans. This causes 
ie sand particles to dance up 
id down as if they were molc- 
jles in a liquid. The bed is 
rough! up to temperature by 
ljocling burning fuel oil and 
ien the user may switch to 
radically whatever fuel he 
ants la use. This can be granu- 
»ted coal, tarry residues from 
il refinery operations, rnunici- 
al waste, high carbon refuse 
rom slaughterhouses and even 
lateriai recuperated from old 
olliery tips. 

As important as the device's 
bility to burn almost anything 
s the fact that boiler rube corro- 
ion is very greatly reduced since 
he tubes in many designs are 
immersed in the bed and thus 
exposed to a reducing atmos- 

It is this immersion and the 
instant agitation of the bed 
■i-ith its burning fuel particles 
hat give the improved heat 

transfer with recuperation of as 
much as SO per cent, and more of 
primary energy- 

At the same time, when parti- 
cularly suJphur^rich fuels are 
being ‘burned it is a relatively 
simple matter to add to the bed 
such materials as crushed lime- 
stone which neutralise excess 
fumes. Combustion is virtually 
complete— so there is little resi- 
dual carbon to make black smoke. 

The Johnston licence is for 
atmospheric pressure beds. This 
is the type at Renfrew operated 
by Babcock, which secured de- 
sign contracts during 1977 for 
four fluidised bed plants with 
boilers ranging from 50,000 to 
300.000 lbs of steam per hour 
for the State of Ohio. 

NCB, at Grizuethorpe Colliery, 
is building a deep bed plant to 
operate at 10 bar absolute (say 
10 times atmospheric) as manag- 
ing agent for the IEA. This 
unit will work at 850 degrees C 
and is inLended to prove the 

At the same time, Babcock 
last year signed an agreement 
with Stal -Laval for' the develop- 
ment and marketing of pres- 
surised bed plants driving gas 
turbines which would use the taot 
gas from the bed after passing 
it through a double cyclone. 

This project is understood to 
be moving ahead very satisfac- 
torily and the partners do not 
appear to think that blade erosion 
from any fly ash which might 
be carried through will be a 

Mon? from Combusion Systems 
on 01-584 S352: 195 Knights- 
bridge, London SW7 1RD. 

MEMOREX is absorbing the 
Telex organisation to form 
under one management a large 
group within the expanding 
plug compatible equipment sup- 
pliers’ group which, all over the 
world, is offering IBM computing 
equipment wnainly) users 
alternative sources for most of, 
if not all, the hardware units 
they employ. 

The Memorex acquisition of 
Telex means, in Europe, that a 
group is now being formed 
which will have an annual turn- 
over of about £100m„ of which 
around £20m. will be contributed 
by Telex. 

In Britain. Mike Kitching 
emerges as the head of the 
merged operations. 

The new organisation will 
have a formidable array of 
equipment to offer since practic- 
ally every item previously mar- 
keted by the two companies is 
being retained by Memorex new 

Both types of solid state 
memories are supported as are 
ISS and Memorex discs, dis- 
plays and controllers and the 
Telex tape systems as well as 
its new small printer. In addi- 
tion, Memorex is making the 
necessary arrangements with 
Lockheed for the promotion oE 
the latter's small System Three 
computer sold in Europe by 

Combined sales and support 
staff in Europe comes to about 
1.000 and the new group is likely 
to give ITT Business Systems 
a run for its money when com- 
peting at IBM sites. 

ICL machine 
near £100m. 

■ W’j& r v *■. ~ N - 

ORDERS FOR three of its 2960 
computers just disclosed by 
International Computers bring 
Che total order book far these 
machines, first announced m mifl- 
1978, to not far short of J™; 
of which a large proportion is 
for overseas delivery. 

Latest contracts include one 
for £hn. placed by Safe Com- 
puting, a Midlands services 
company which is to have »t 
.2960, as well as an extensive 
terminal network and a System 
10 supporting a software services 

The 2960 takes over from an 
ICL 1903A and will provide the 
communications capabilities bate 

Computing needs to support its 

planned “terminals network. 

Tvmir Marketing Board is to 
have two of these machines m 
an array worth Slim, for installa- 
tion at its Thames Ditton, Surrey, 
headquarters in about a year. 

The Board's present 1904A is 
operating round the clock in 
support of many applications. 

the primary one of which is the 
despatch of monthly milk 
cheques to more than 50,000 
dairy farmers, involving pay- 
ments of better than £lbn. * 

More and more, -the Board’s 
data processing facilities are 
being relied upon for the exten- . 
sion of services such as milk 
recording, farm costing, milk 
yield prediction, etc. lnforma- 
tkm gathered concerning around, 
lm. cows in the recording 
scheme is used to determine the 
best breeding bulls, for example. 

The Board is to use TCL'a 
1DMS for the establishment of a 
database system and proposes 
extensive use of data communica- 


More on 7S3 7272. 

CHEMICAL synthesis of complex catalysts is 
not an easy task by ordinary methods, but 
vapour synthesis developed in Britain make 
the control of the end-product relatively simple 
to achieve. The plant shown here is the most 
recent design Intended for the production of 
new mixed catalysts, primarily. Evaporation 
of the refractory metals which frequently are 
constituents is by electron-beam heating in a 
cooled reaction chamber into which, say, an 
organic compound would be introduced as a 
vapour. The two materials are thus presented 
to each other in a highly reactive state and 
conditions for synthesis are at an optimum. 
The equipment here has two readily inter- 
changeable high-power evaporation sources 
which can work simultaneously. This means 
users can evaporate two refractory metals. 

two lower melting group metals or one of 
each at the same time. Newly-designed 3.5kW 
electron-beam sources have the ability to 
evaporate tungsten at a rate of several grams 
per hour for a period of hours. Speed of 
rotation and angle of the ten-litre reaction 
flask can be varied to suit the type of catalyst 
being made or the support system chosen. The 
resistance sources used in conjunction with 
lower melting point materials have a power 
of 1.7 KW each. Earlier generation synthesis 
plants are working in most European countries 
as wen as North America and Japan for the 
production of catalysts, novel organometallic 
compounds that it would not be possible to 
make by other methods and in research. More 
from G. V. Planer at Windmill Road, Sunbury- - 
on-Th antes, Middlesex. Sunbury 86262. 


Discussing pollution 



Thin wall 

square tube 

Division is a range of thin-wall 
rectangular hollow sections, in 
hot finished quality. They sup- 
plement the BS 4S4S Pt 2 metric 
range made in the U.K. only by 

The Corporation says the new 
sizes, which are generally below 
3mm thick, provide a wider 
range of sections for use in 
structural and mechanical appli- 
cations where the combination 
of high strength and light weight 
can be used to advantage. 

More from Tubes Division, 
Corby, North ants. <05366 2121). 

Meets fire 



TWO RANGES of dry-powder 
extinguishers - bave been 
launched by Nu-Swift Inter- 
national. All the models have 
been granted approval by the 
Fire Offices' Committee, and it 
is believed these extinguishers 
are the first to meet the new 
standard BS5423:1977. 

Called Malty-Purpose and 
Ultra-B, the first is for general 
use, and the second particularly 
for Class 'B and C fires (flam- 
mable liquids and gases) with or 

without an associated electrical 

The Malty-Purpose ex- 
tinguishers can also be used to 
deal with Class A fires (car- 
bonaceous solids such as wood, 
fabrics, papers, etc.), and with 
a mixture of the different types 
of risk. 

Powder as ejected using carbon 
dioxide at 200 psi. and accord- 
ing to the size of unit (from 
3 to 10 kg capacity) operation 
is for 10 to 21 seconds. The 
nozzle has a squeeze trigger 
which enables the flow to be 
stopped for brief periods after 
the striker knob has been 

Tested against the new 
standard, three of the ex- 
tinguishers are rated 233B — this 
means they will put out 233 
litres of ignited aviation spirit m 
a circular tray with a surface 
area of 7.32 square metres. 

The largest extinguisher is 
rated 43 A, which means at will 

put out a substantial wood fire. 

In the general purpose 
extinguishers the powder used 
combines chemically with the 
fuel to prevent combustion. In 
the Ultra-B type the powder 
expands in the fire to produce 
a large surface area, on which 
the fuel is adsorbed, inhibiting 

More from the maker at 
Elland. West Yorks, HX5 9DS 
(0422 72852). 


Visible in 


PUT ON the market by Hewlett 
Packard are light emitting diode 
units designed for users who 
need to be able to read digital 

displays in high ambient light 
levels at distances up to 20 feet. 

Red and yellow versions are 
available, and these seven seg- 
ment numeric displays are sup- 
plied in two sizes, 7.6 and 10.9 
mm. According to the company 
they can be read easily in am- 
bient lighting as bright as 10,000 
ft candles when used with pro- 
per filters. Viewing in bright 
sunlight is possible, for the first' 
time according to HP. so that in 
this kind of application the LED 
now becomes competitive with 
other displays, including liquid 

Light output of the units, 
which are designated HDSP 
3530/3730 (red) and HDSP 4030/ 
4130 (yellow) is typically 2,300 
microcandles per segment at 
100 mA peak, with an average 
of 20 mA. 

More from King Street Lane, 
Winnersh. Wokingham, Berk- 
shire RG11 5AR (Wokingham 

BECAUSE THE rubber and 
plastics industries use or pro- 
duce complex mixtures of 
materials, some of which may be 
toxic, special precautions must 
be taken, and environmental re- 
search, monitoring and control 
procedures are necessary- This 
has. led to a decision to hold a 
-symposium on air pollution 

. -Sponsored jointly by the Rub- 
ber and Plastics Research Asso- 
ciation (RAPRA). and the con- 
tamination control group of the 
Society of Environmental 
Engineers, the symposium. 

directly related to the rubber 
and plastics industries, will b* 
held at RAPRA on March 8. 

Objectives will be to review 
the legal requirements: illustrate 
the approaches taken by the in- 
dustries to the monitoring and 
control of potential pollutants; 
describe the facilities available, 
and the need far environmental 
research programmes of com- 
mon interest: and provide 
practical assistance in the 
formulation of monitoring and 
control programmes. 

Details from RAPRA, Shaw- 
bury, Shrewsbury, SY4 4 NR 
(09394 3S3). 


Loco design for U.S. 

AMTRAK has signed a contract 
with the Electro-Motive Division 
(EMD) of General Motors for 
the building of the first series 
of a fleet of high-speed, light- 
weight electric locomotives. 
These will be used to haul trains 
of up to eight cars at speeds 
up to 200 km/h (120 mpb) in 
the Northeast Corridor, between 
Boston, New York and Washing- 

The first order is for eight 
locomotives at a cost of S22m. 
However, the total AMTRAK pro- 
gramme calls for 30 of the loco- 
motives, which will cost S77An. 
Funding for the entire pro- 
gramme is not available in the 
1978 fiscal year. AMTRAK will 

request the additional $55.Sm. for 
the 1979 fiscal year, which 
includes money for escalation, 
spare parts and contingencies. 

The new locomotives are based 
on the Rc4 design by ASEA of 
Sweden, which AMTRAK tested 
successfully last winter. EMD, 
licensee in the United States for 
ASEA electric locomotive tech- 
nology. has obtained a licence 
to build a locomotive similar to 
the ASEA unit but with more 
power and higher speed. The 
.AMTRAK locomotives will have 
a tractive effort of 23.S tonnes 
starting and 13.S tonnes con- 
tinuous and output at the rail 
of S.400 h.p. starting and 6,100 

li i 




King Faisal Bin Abdel Aziz A1 Saud 
flyover is a double over bridge con- 
necting all main roads lying between 
Mina and Arafat. It consists of two 
parallel lines of 20 metres width/ 
each and 2,650 metres length/each 
with 20 ramps. The flyover forms the 
main part of the circular road to the 
Holy Mecca. 

The importance of this flyover will 
appear evident during the Hajj 
(Pilgrimage) period when the 
pilgrims, the total number of which 

exceeds two million, visit the Holy 
Mecca, in the Kingdom of Saudi 
Arabia, within a few days of every 
year to perform Hajj. During these 
few days all the pilgrims are trans- 
ported by vehicles, which exceed 
one hundred and thirty thousand, 
all moving in the same direction and 
at the same time. Therefore, in this 
season, the Holy places at Mecca 
have the heaviest Concentration of 
traffic in the world. The Kingdom of 
Saudi Arabia has awarded contracts 

to various companies for the con- 
struction of several roads and over 
bridges to facilitate the movement of 
vehicles transporting the pilgrims. 

The Minis try of Public Works and 
Housing has awarded the implemen- 
tation of the flyover stated above to 
KARA Establishment as one of the 
Saudi establishments working in the 
Holy places. 

Within a record period of only nine 
months, Phase 1 of the flyover, • of 
1,200 metres in length, was com- 
pleted and became ready for 
receiving vehicles of pilgrims. 

A few years ago, prestressed con- 
crete was used in the execution of 
the flyover bridges in the south of 
the Kingdom. .This is the first time 
that prestressed precast concrete 
has been widely used in the 

The quantity of concrete used in the 
execution of the flyover is about 
150,000 cubic metres, 60% of the 
total quantity is prestressed precast 

King Faisal Flyover at Muzdalifa “ Holy Mecca,” the first phase of which was 
implemented in a record period 


contractors participating in the 
execution of the flyover. 

Work on the flyover has been going 
on for 12 hours daily during the last 
four months. 

output of the factory is 6 girders 
with 30 metres length/each and 5‘ 5 5 
tons weieht/parh 5 ' ana ^ 


tons weight/each. 

elution Of the flyover 

Kara F.qtaitiioKmM.4. ^ — 

Magnificent Equipment and Capabilities 

The implementation of the flyover was the first time that prestressed precast 
concrete was used on a wide scale in Saudi Arabia 

The quantity of the cement used in 
the execution of the flyover is 60,000 
tons (one million and two hundred 
thousand bags). 

Kara Establishment has recruited 14 
engineers comprising 4 Saudis, 11 
surveyors, 800 technicians com- 
prising 120 Saudis. This is in 
addition to the engineers and 
labourers belonging to the sub- 

RE. Sheikh Abdullah Al-Kasabi, 
Managing Director of KARA Estate 
lishment, states that the execution of 
the flyover has required establishing 
an integrated factory producing 
girders from prestressed precast 
concrete. The output of the factory 
is 4 girders daily on a single shift 
basis. The factory was founded in 
KARA Industrial Estate, which 
covers an area of 400 x 350 m 2 for 
producing girders temporarily till 
the main factory was completed. The 

vaty* of the flyover 

KARA EstabUshment has used 5 

. cranes of 100 tons capacity/ 

each’ and^oth 4 ° t0DS capacit > ,/ 
eacn and 22 other cranes of 15-20 

tons capacity/each. This is to add” 

uon to two central mixers each 

SeS C 2 P 2 aC til y °- f * S0 cubic ^ 

per nour, 22 transit mixers and 
steel cutters. Moreover - various 

equipment ser- 

Et™ 18 were set up- Kara 
Establishment will also undertake 

execution of the southern part ofthe 

^ver m a tQ 

SMS? 18 currentl y bein ~ 

jis l!,r 





as your tr 


iiirao cd 


-••••"• :-rcf *• 

\ • t * t y 




•Financial Times Wednesday January 25 1978 

Keeping abreast of 
company schemes 


The publisher that backed 


AS AN employer,. you have been 
running a company pension 
scheme for your employees for 
many years; and you have made 
periodic adjustments to the. 
benefits provided. The latest 
improvement about to be made 

the Social Security Pensions Act _ , 7 

1975. Salary grades 

But how does yoor benefits ***** ra * e . 1 

scale compare with that pro- other brass * 

vided by other companies? How • it* ngarts h, br» 
do you check trade, union claims -number of member* 
that it is • very much below * sipuBaat chaise 
average? ' ' 

There is a complete dearth of ANNUAL CO* 
this type of statistical infonna- 
tion from official sources; - 

However, employers need not Average annual 
be left completely in the dark, contribution based 
The National Association of on a salary of: — 
Pension Funds has recently £1,500 per annum 
published its Survey of Occupa- 
tional Pension Schemes for aoQO per annum 
1977, the third in its series. 

NAPF, the trade association of £sjoo per annum 
company pension schemes large 
and s mall , self-a dmini stered, and • 

insured, has taken upon itself - 

to provide as much information- 

on pensions schemes as it thinks 

The NAPF collects the Average annual 

its members which-asks various 
details about the schemes under 
company control. The returned 
forms are analysed and the find- 
ings published. Completion of 
the form is entirely at the 
discretion of each company, 
some of the findings ' may be 
questionable since companies 











Final or final 

% % 

% % 

• % % 



average salary 

95 {95) 

S3 (85) 

96 (99) 



Career average 

1 (-) 

1 <-> 

salary . 

9 (6) 



Salary grades 

- . <-> 

5 (-) 

1 CD 



Rate rate 

1 (-> 

M (7) 

- (-> 



Other basts: 

4 (5) 

10 (2) 

3 (-) 



• The Azores Jo brackets represent the perc mO g e * obta i ned by relation to the 
number of members rather thai the number of schemes. These figures show 
a sipuflont daif« in. the case of Works, scheme*. 








contribution based 
on a salary ofr — . 
£1,500 per annum £ 








0,000 per annum L 

339 20 


- 302-45 




. 1038 

£5^00 per annum £ 


288 iX) 







. Staff 



Average annual 
contribution based 
on a.salary oh — 




£1,500 per annum 

£ 270.68 



% . 18.04 

. 738 


£3,000 per annum 

£• 562.95 



% 18.76 



£5,000 per annum 

£ 92235 



% 18.45 



TRADITION can be profitable, 
as Boosey and Hawkes, the 
music publisher, is well aware. 
} When the last night of the Sir 
i Henry Wood Promenade Coo- 
' certs draws towards its close, 
and both orchestra and audience 
break into an uninhibited 
rendering of Land of Hope 
and Glory, Boosey can reflect 
happily on the fact that it owns 
the copyright to this rousing 
piece of Elgar's music. 

But there is another side to 
the coin. There cannot be many 

. — earning a really good return. 

****** Serious music publishing is 
a very much one of them. 

_ Patience is a pre-requisite of 
financial success; without it- a 

_ lot of money, as well as good 

Ad music, would probably be lost 
schemes Publishers must also accept 
that composers, if they are 
good, will expect enduring 
loyalty and support while their 
140.65 music is awaiting widespread 
9J38 public acceptance. 

29638 Boosey is one of only a 
938 handful of companies tb rough - 
507 SO out the world which publishes 
10.15 serious twentieth -century music 

and as such has considerable 

influence on which composers 

will ever have the chance of 

AH emulating the success of people 



• -• . w 

^>ove: Mr. Alan Clapham. diief executive of Boosey and Hawkes. and Mr. Tony Fell, managing director 
of the music publishing division. Top and bottom right: The late Lord (Benjamin) Britten and Sir 
Edward Elgar. Boosey holds the copyright on some of their works. 


talk? with rondui-tij.-i c 
noicenti. This is in;'.Lr'. :r.*. : 
only for research, i.-ur ;; 
key part o: Bii‘i>cy's ov. l: ::: 
keting. To pro:n»:v 
composers does rot on tail h 
barding people wilh >v nw. s- 
Tony Fell. A can.:u! 
of targets is ncccssc.r;- if 3-.* ... 
is to avoid iobbyin.' j c..:: j;;. 1 : 
with a piece of mir-ic 
in a style he is knar u 

The level of pin;*: ;••*. r 

behind eacji cunipi'-vr : - >r; 

out on th-? down-ui.-;-.:- - :!- M 
of assesfeinz ec*:!: 
likely remm ind 
tioning a c*.*rre>tninoi;!.: . 

t age ’of the twa! zv->-_:v^ 
development A-- r.\ 
cal works are ceciPlelo-J .*’! ' ' 
copyrights acquire .1 t.u ,v - 
immediately wr:Ue:i >i:r a:.:,; 
revenue. Thus. ;:7I l-.iu./.h :• • 
in Bimsey’s vast l..r:‘yy — '>■■■ 
where music \* : 

orvhesiras an.: 
groups all round th*' — . ( 

included in the -. • • 

ance sheet at n •.-■.*•■ 

value, whatever th.-::- • !. 

term worth. 

Another key iaci->r :p 
E onsey keep? in tni;.:- v. i:‘: . 
vciopnicnis in the .• v..-.- 
is its imv*rnaiio:i:i! brauv.s ::v 
work winch, i; ;*> 
most extensive ;•< ;• I .. r:.-.- 
Serum? iililriC 

lilt* l. T K. opera "I'. t. :* ..* i:.;-*: i 

schemes like the late Benjamin Britten, of tbe time when copyrights not only expensive to publish. Before taking on a composer, p. .riant element ,s 

the copyright of most of whose run out and need to be replaced but it will lake much more Boosey will make a thorough Hawke? Im-. she i. . - 

works is owned by Boosey. by new ones if continuity of time and effort to earn a reiurn examination of his (or her I sidmry whifli i- ;-u- 

22832 T j income is to be ensured. Copy- on it than on a small ensemble work and will have lengthy dis* nmipany other ;l:a;; 

jcSx Irenas rights can expire anything up conH»osition. cussions about his development tn t-omniissi.*n u,.»ri:.% ...-1 

17001 rp -k uivuurc is a 

is .26 Trends swa* can _ 

47833 But Boosey’s membership of t0 50 years occasionally So why does Boosey not con- so far. It will also consider «n new en in pn< 

•1594 this potential oligarchy does not 70 > after the death of a com- centrate on those composers which direction he is likely 10 Serious mu>;, i a r-n ■: 

gQi.74 mean that it can easily manipu- poser. Such is the prospect who are prolific and who pro- take in the future, in terms of tire Boosey bn>::u ? s. 

, 6J ,3 late the market to the advan- with Britten’s music. The du <* pieces which do not both style and scope. The com- it is the nu«t in:p..r:.n: .. 

tage of its own composers, importance of forward planning future a iarge initial invest- bmedexperience of Tony Fell ment. accountinv for .."•■rn- • ■ 

Other bodies, such as con- is underlined when several ***** Mr. Tony Fell, manag- ^ ^ r ° f !n '"- ; r"' 

doctors and. most important, major copyrights can expire m 1X15 Sector of Boosey and of cruciaJ importance here. publish in„. The .c.-I.m.v . ;v. 

p» RUr Visv» nrootart in. j r. Hawkes Mnsip Puhli^hers, jsbvk To keeD in touch with music music and — in IN- :a?l : • 

with poor pension schemes will Safest improvements will send tributions— the most generous the BBC. have the greatest in- auiclc succession For instance Hawkes Music Publishers, says To keep in touch with music 11 

« d .L.Ll n ...:*L *L« tha Kill oron K i *nK o r Thh tahlpc Kpnnflf that Port ha rtmiririiad *L„ Tttt ^ v tY\a ^wi/1 rTc F.v/tiilTPC a (•Antinitrmc Vi 

a vcj 3 uaciui iv nnai ra hwl ouoLCjjuuic iu me TTnnA anil flnrtrl ^ UUUU1? luc aiun urvtr 

happening to pension schemes. This is that employers have benefit should a member die in frenetic swings in fashion seen “J**™ u 0 , ' lopers and, anyway, these 

especially if a comparison. with been spending very much less service, with or without some in the pop music world, trends If *“8** be argued that pe0 ple “may make the best 

previous surveys is made. The on pensions for manual workers other form of benefit. do change and Boosey, like l 800 ^ therefore has time on returns in the long term.” That 

NAPF has already started on its compared with otheT staff Another area of vital interest other Publishers, must there- . sl J d *' tllis would be is an important point for a com- 
planning for the 1978 survey because the benefit structure For js w i,e re pension schemes are for e remain keenly aware of denJed by the company. For a p^y w ^i c h must aim t0 spot 

which should be even more works schemes is* in general investing their funds. The which way the breeze may be 5tart * S° od new composers of composers vvhose music will 

valuable, because companies inferior. report shows that among self- blowing. - serious music do not grow on stajld tlhe test of time 

will by then have done all the The tables in the report also administered schemes, portfolios In the calm atmosphere of its t™** According to Boosey, To SQme Boosey re _ 

adjustmants required by the include a comprehensive comprised 36 per cent equities, Regent Street headquarters in two or three years may elapse ^ uces of s jonmg on a 

1975 Pensions Act. analysis of ill-health benefits. 28 per cent fixed-interest, 19 per London Boosey gives the im- before it finds someone it feels dU d composer by concentrating 

One question which is prob- death-in-service payments and cent, property, 6 per cent non- P session of being far removed is worth taking on. And then j ts attentions on people who 

ably uppermost in any com- pa y meD ts. to widows. This shows sterling securities, 5 per cent from the world’s hurly-burly, there is no guarantee of bow a i rea dy have something of a 

Usance Building Sodbtv 

announces that the following interest 
rates will apply to all new invesimen: 
accounts opened after 51st January 197S. 


per annum 

Gross chlivj Uni 
\icldafji •}*'.* 

aoiy uppermost in any com- payments to widows. This shows sterling securities, 5 per cen 
pany's mind is how much other . . ner cent 0 f cash and 5 per cent others*, 

companies spend on pensions. ^ * ■ 

It will be recognised that schemes paid a lump sum on 

pension schemes are a severe death,' plus a widows’ person IltinrOVEmPTlt • 
drain on cash flow and the and a return of members’ -am- Am r A u T cmcui 

Keep your transport 
mmgers in the 
filing cabinet 

Fleet management is our speciality. Whatever size 
of fleet, whatever the mbc between cars and 
commercials, we can taiior a leasing package to 
suit your operations. With one of our leasing 
programmes you'll enjoy the widest choice of 
vehicles, total flexibility, the best funding options 
and even specialist bodywork — from tankers 
to ref rigerated vans. 

If you're thinkingf about leasing, put Wadham 
• Stringer Leasing in your file. 

cash and 5 per ceoL otheflL laying plans for a distant future, prolific he will be. Some pro- track record— a practice for 

Yet there is an undercurrent of duce . three pieces a year; which it makes no apology, even 

activity which reflects the un- otherir may only compose one though this means that it is not 

Imoroyement • • • usual demands that are p ]aced work every two years. supporting budding composers 

r upon its management A further point to contend j n their very early stages, at 

The. one analysis lacking' in ^ >or ® oose- y. t^ e future must with is that someone who is a music colleges and elsewhere; 

tiiis survey is an appraisal of take account not only of the slow producer may compose a Boosey seems quite happy to 

the investment return on the next five years or. so, but also large orchestral piece. This is leave that to other publishers, 
pension fund portfolio. AL 


prebensive analysis on invest- Closing down ever. Liquidation (fairly. soon) is at least 14 days* notice of *your 

meat returns are made each almost certainly the solution to intention to sell the goods. The 

year by leading stockbrokers, ^ COUTD 2HV y° ur problem, for at least two sale should normally be at public 

including Phillips and Drew . „„„ tax reasons: \ ' auction. If you do not yet have 

and Wood, Mackenzie, and the trading leavSiir m*i assets fi) a d “ tribnti o n °ut of the a notice under the Act displayed 

major consulting actuaries, such ,» Thh S company’s assets, otherwise than on your premises you should 

TSoon and Woodrowl^R S.000 ta ^ TTi 0f ,i,,uklaUoQ - “ btain 

Watson and Sons. ~ L would be taxable as income; cannot sell goods deposited with 

Watson and Son^ *«> delay between fte you before the notice was dis- 

— amsxfx/ ORDINARY SHARES , 

MoncyReadulunior ' 

** l-month notice ^ Sff* 

MoneyMonth | yAccolinls ^ 


{Current issue) 

g" nm/ 3-year High Income Term faq^ / 

575% i h c= Mone3 ' Mon ‘ Wy ©•/ i/6 

6 - 00 % Accounts 7 ^ ‘ j 

£ FAft/ 5-vear High Income Term 

OOIIto A= MoneyVonUl,y y4t$% 


15 % 

““ “JSw Z <»> delay between the you before the notice was dis- 

A complete description of . pre X. ons J t ? x pa !“ cessation- of trading and the dis- played, 

these services and their useful- -!2JE» ! a«¥lm trihutlpn of the- cash iu the. '* 

ness would require a separate L °ihp r romnanv I course ?f liquidation could lead No legal responsibi/ity can be 

article. But they are a valuable !!/,rL^i>ini ® t0 forfeiture of the capital gains accepted by the Financial Times 

i tool for pension fund trustees i! tax ««mption which you have for the answers given In there 

q re u ,iisSnt%er nerally called s=s tf st r; s 

we ^ e doing on its cully In .selling the company. If ln the inland Revenue pLfb/e Y * 

investment strategy. After all w liquidate the company, I aDn ounced that, by rnnep«inn J- 
it is the company which will understand I can appoint my selr ft ey ^11 generally give retire- 

have to make up any shortfall, liquidator. Should I do so. meDt reHef in cases like yours. . , _ _ _ _ 

PerhanK the NAPF will A,te r nat ] veI y can . Vl e provided that The lapse of time ' R *T A A 5 

r™}z rr° ,Ve , ro V* 7 ° a u ,h * ,?’ 000 ,0 between the cessation of trading 1 g /VI 

^ of perform- themselves as shareholders od and the distribution of the com- X 

anra next time. Meanvjile the basis that no funds are pan y s cash by the liquidator does 
perhaps the Occupational Pen- required for trading? In that not to years AMERICA’S 

sious Board should be looking «* wnld we claim the lax ECONOMY: 

beyond April as to its functions refund? ITnmllpptpH World Story on 

and consider whether it should You appear to know so little U iiLUiittlCU President Carter’s 

not produce statistics of this of tax and company law that we ^ j New Economic 

sort. After all. the data wfll be gender whether you are wise to gOOQS- - 

readily to hand and it will 57?,,, d ^ lty ?“? e !L 1 repair sewing machines and T Programme 

cover all companies contracted- SS-J ftods^L wily h moSS’ have of them ,eft Impasse in Jerusalem 

out Jhk ! ti,r on “y kaods by customers. Intecnew: 

’ ISS? ps ™ Ul h y tb St k ; Can I sen them? King Hussein of Jordan 

pany> accountant is the best- provided you disDlav a notice 

« idea of pursu ant to ^tbe $&£* ofSn 
basic principles. collected Goods Act 1952 on your T 8 ? 

The £350 tax. refund presum- premises you can sell goods Uutlook for Italy 

ably relates to what is generally which remain uncollected after This week in Time, 

called a terminal loss claim; it 12 months , from your having ' on sale now. 

iCTICO/ Regular savings - 

n*/ MoncyBuilder Savings 

XJ M+J /V Accounts 

Perhaps the NAPF wiU 0%%' U'jiyT.t '.he W000°tl CTw™ thV^rfoTe'f ?.dln S 
2,« de ^ “; ,ysK °i peTf lT lS enL l el¥ - es shareholders an d the Sstributton of the com- 
anCT next time. Meanwhile the basis ,h »t no fta , ds are pan y-s cash by the liquidator does 
perhaps tie Occupational Pen- required for trading? In that not to yea rs. 
sions Board should be looking rase could we claim the lax 

beyond April as to its functions refund? x } n p n 1|potnd 

and consider whether it should You appear to know so little 

not produce statistics of this of tax and company law that we ^ j 

sort. After all. the data will be yemter whether you are wise to gUUUV 

i readily to hand and it will 1 repair sewing machines and 

cover all companies contracted- fSiily th SoSS’ have of them ,eft 

out s ,uaa ® ,, e lairiy moaesi. 0D my hands by customers. 

. , . . Perhaps a talk with the com- ^ j • eD ttem? * 

' ■ “ • accountant is_tbe best • provided you display a notice 

• Survey of Occupational Pen- basT?princtoieI 0U ** ^ ° f ** pu ^ su ? n j ? e A Dlsp S “* of Un ' 

sion Schemes 1977 from the ° ° pnnc 'P les - collected Goods Act 1952 on your 

NntioTMl Association ni Pension The £35f) tax refund presum- premises you can sell goods 

ab,y relates wbat is generally which remain uncollected after 
Funds, Prudential House, \vel- ca u e d a terminal loss claim; it 12 months . from your having 
Lesley Rood, Croydon CR9 9XY. j s related to the cessation of notified the customer in writing 
Price £3.50 (non-members). trading and it is not affected by ih3t the. goods are ready for re- 

5 * 25 % mpositaccouints 



/O Alliance Invest & Insure /■!> 

' ‘ Bonus Plan Share Accounts ' 

Interest on new accounts opened by Limited Companies 
and otherbodiesafter 31st ianuan'1978 will be 4-5U".. net p c. 
oh Ordinary Shares and 4-25% net p.a.onDcposIt Accuuiils, 

J) c 



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Financial Times Wednesday January 25 1973 


»* dry IS THERE MORE to gardening August. When they flower, you the annual forms which are less which can be raised by the sound -an unlikely pair, b ut « ow ers are bunched thickly 

w than growing your plants as well cannot overlook them, because impressive and .have to be re- dozen from cheap seed without you matched ine J? jower oruo clusters whose texture is Ufa) 

• as possible? I like to think that tbeir co,our 15 strong, shocking placed each year. It tends to any greenhouse. Lychnis Flos- witjra 0 ?L T as paper. In early summer, their 

there is and the further skill pink for K vate ??' crimson-rose stand up to less of a height in Jorw, its full name, is the one Yarrow. « Acb that heaS are extremely bright ytw 

fa Hill 1 V r V . e lbe furt r sr for Malope. Loveliness and Crim- late summer than your cata- easy plant which combines grey- Moonshine, you **“,*?? <-□ split your first plant into 

HUUM f vl hJMUL y !s oae tb *t can never be fully son King are the best v&riettes. logues may suggest. Put it white leaves and stems and small there Is sense »n lt - So> manv 3 after a vear as it runs 

v mastered. Plants must be placed, a packet will give you about SO therefore, among the shocking open-eyed flowers of a brilliant taller crimson-rose anniape * Mocking 'big. if ttoi little' 

not merely potted up at the plants even if you are a hesitant •' ■ ■ ' • - would go with a clear pale gel- easily, is # bflsbt 

JY ANTHONY HARRIS proper season Some co^nrs sower. How, though. / do ' you . RL D 8.Ji , »,iiiimos of a wle one. half as fine in Isotetftxfss 

make the best of each other, merge these strong colours Into GARDENS TO-DAY ^SgSiJI FVImrose The when combined with a suitable- 

.. Leaves and shapes can be com- the garden? UAKUCI13 - ■ ■ lemon Evening rr ini robe. * __ iohhmu . fast year. ! massed 

iROKERS, however influential of course, is that when the bine* to impress the eye. Every . It seemed to me last year that Yarrow,. naturally, has those -ft* P ei * , rh th « excellent low. White 

bey may be, do not usually market refuses lobu y stock, it year, 1 look out for groups that Lavatera Loveliness was twice as BY ROBIN LANE FOX heads of flower . 1 1 k ® viola the one called Corsuta 

flebrale the anniversaries of *<*«*»y « U !S .5®. tttm tome to be particularly fovely because it was combined. white forms which are now so vioia.j ^ MaBOa T 

ny advice they huve offered to supply to get out of control. This favourable. No two gardeners inadvertently with roots of lhe ! . abundant in •»«****?"£; .tor so hare already written hero. (Sear 

£F ■" — . * * SSs ERff££S& SSSS S 

n have been flatly rejected. The The radical reform suggested -PS,*? £*£>£35 ? Way ttw - 11 shows the otiie'r *ot spSididl? just right for their pastel- ^Srof jSve S Youcannotratse merata which would alsb he,a. 

•utbursL this week from Green- by Green we Us would certainly colours are advised to consider has suffered by finding a place j n August they are badly needed, coloured borders. 1 disagree with SJJJJL wed "but you possible partner, though- its 

veils, which has attracted so get rid of the basic weaknesses them. in vases which make too free numie-red -and crimson- them. Plain, violent Flower of a effect ls‘ a little less neat than 

nui-h iitcntinn is ar first sieht they attack, but it is not the For 20p or so, packets of the with ferns and top-growth nf ^The purplw^ wd crimson Jqvb mBm w me ^ best, -and H*L] , ? 3r . l L;J° MnJfJnT ? thc viola’s. A big clump o? 

iifficult^to U pKTibin After all on, y possible starter. First of tall annual Mallows, listed as asparagus. But it seems to me r ? so 0 L? e ft will seed itself freely wherever ^, orf blu _ these two colours, grouped. oa 

l iev j. av . p a ij hpfore and al1 - as ttaev suggest, a simple Lasatera and Malope.seem to me to be invaluable. Those clouds Bl i t vou plant it I have had plants ^ ™ ay swmoddto see t e would be spectacular. - 

0 the v,.m Imrl fw' nJ5 change from M3 to M2 in. defln- to be excellent valne. Despite of sman white flowers are held the colour which has bothered ban J^ ni from a JL wall J, hose M.a strong colour but m a fine dM but these who 

■ailed fora radical form nf mono- in S the monetary targets would the seed catalogues which now go thinly on such delicate stems gardeners for i _, ycarB '. v . ^ grey^ye How stone did something Campanula called Glom , rec0! , n i 5( . l j that good gardening 
an poliL'i i lot has happened d ft a lot to help an its own. The urge action, do not hurry to sow that their lightness takes the magenta-red, a colour which- L hioderate their colour but nu.rsftryman's blue is :n fact a . t only the handling of difB- 
Scn P ou4't io h,ve ma3e P th^ ^ange would exclude large and **** oS a ™ neighbour. ^ J anoSe? flower would be a better deep indigo-purple. This is an ^ p | ants will sec the totMta 

lappj. Monetarism is holy wriL certificates or deposit, and since soi^ Perennial white Gypsophlla, as i ond e^ But“ Is *e itou™ companion. I have now found a excellent small carpeting plan! this com bmatlnn ^ «». 

he poUcv I, a§ b«n effective, the institutions tend to put tlieir *». sown outside in early ^ ^ ^ las j for years co of tte admiMble Flower Bond one. - . far too seldom planted. Its thick garden also, arc a better .effect 

• nd the Bank of England has J^f'SSiaito^oSd n? loS? i ft and a similar width by late if you buy a few roots, avoiding of Jove, another perennia l plant Pale yellow and magenta may, heads of deep strong violet stand than one. 

■looter, which was a Greeowall directly inflate the money supply. ' : ~ _ ^ ^ • . 

Two colours are better than one 


uniter, winch was a ureenwau -■wuj' *■ J 

,,n^MN',",,r^rTi"e^Tr"k' e . d ! t ' 1 Not so simple Beige Prince can do the extra I Mottram reaches last Xo 

i:vuviiwHI» in %irlieular— was The radical route Involves BEIGE PRINCE, who sprang Morley, whose string has yet to recognisable commentator. 

wd.-lv blamed in Hie Ciiv fur the much more. A system of con- something of a surprise when find its form this term, saddles Michael O Hehir. o ®T| ~B Tt g m 

ilccssiun in raise minimum lend- trolling hijih-powered money is easily disposing of the long odds- Tragus. Other intercsuns_ ebaractere ?V| r^Dl 8C3ll0lDlllQ ' 

ir. - mu* .1 f-w weeks auo. Some very straight for ward in theory— on Rough and Tumble and his My narrow preference Is for profiled include Adrian Maswel . ||l HR R RtflllyTl iSRHI^R, 

peunlc U mug hi the rise was un- though experience in the U.S. own bette^fancled stable-mate the last-named, who has recently Michael Kauntte Tommy Siack Jajam -Hi- MmA**e*vw***w 

Eives-sarj. ..hd the fact that it is suggests that thc practice is not Physicist at Leicester a fortnight sbovra that a return to form, is and Mick Connolly- .... _ . .. ^ lf the _ 

siil..icfiUL*allv pi lh ns again has quite so simple. In this country, ago. looks set to follow up at imminent. Tragus, a son of that For many racing enthusiasts. BUSTER MOTTRAM. the new to }5 with an ace took Mottram attitude would beU tpere TO 

reiaiurced the feeling that panic however, it would mean quite Folkestone to-day. remarkable sire, the French the most fascinating piece ' in British No. 1. was the first player to 5-4 and. although Gulliksun any sort of dwagreement with 

originating in thc gills market an upheaval in lhe City. Short Josh Gifford’s French Beige D?}^ wu * n tTw Tanerko, will the L^kpage^ book will be \ .n- t0 ^ter' the last 16 the held his next service game, it Taylor or any other captam. • 

Not so simple ncige jrriuce cam uu me cau a . 

iivuvnwcll* 'in V'rdcular— was The radical route Involves BEIGE PRINCE, who sprang Morley, whose string has yet to recognisable commentator, 

v. idi-lv blamed in Hie Ciiv for the much more. A system of con- something of a surprise when find its form this term, saddles Michael O Hehir. 

ik'Ci.Mun in raise minimum lend- irolling high-powered money is easily disposing of the long odds- Tragus. Other interesting characters 

in* raic* i f-w weeks auo Some very straightforward in theory— on Rough and Tumble and his My narrow preference is for profiled include Adrian Maxwell, 
•it unit uumjiiil rhe rise was un- though experience In the U.S. own betteMancied stable-mate the last-named, who has recently Michael Kaun tte Tommy Siack 

Dives*iar\. ,.nd the Piet tim it is suggests that thc practice is not Physicist at Leicester a fortnight showi that a return to form is and Mjck Connolly- 

r*.:id ^•jincihiiig to do with the Silts and Trc«sory Bills would eight-year-old, among the run- re J** b a °y ra *° 

dceinion. no longer bo reserve assets for • The second edition of 

the books, which would leave, ” P ‘ Grc * um 

_ . thc discount houses looking for DAnkIP which proved a notabti 

Incrpnmnc a ne w ro,c - The overdraft KMOINI* when mtially produced 

system, which leaves a large nv nnwiwir wirAM *!* 

.. . . . . unknown factor hat ween the BY DOMINIC WIGAN Edited by Tom MacC 

. Given wells rehearsed their base and thc actua , monev sup . published by Aherlow o 

na-ic criticisms nf the system „w tn i n h t ,k„ hnun f„ a the annual is avalUbli 



ply. might also have to go. A 

learn the main farts about the 

little doubt that this afternoon’s and the Flat, contains a number 
extended trip will -suit him. oF interesting studies: notably a 
If this is so, he ought to prove fascinating profile of Martin 

rsanuhli. nf inctiMnn rKn rnn- MOlOQV by Ireland S most 

figures are especially crucial. DI course, explain their reluct- J ri i_ g hllT1 ^ nreference to 
T'ni> is a period when lhe Bank ance, to ; take up, the much SJ*™ ErJ! 

Thc second edition of Ireland's My Best and a number nf other cjuninlanships, sponsored by the had soon completed his win. and through without fuss. Vltiii 

Sean P. Gra hum Racing Annual, Ballydoyle inmates whom he lNA insurance group, at the via ^now probably play the top Gerulaitis, the No. -4, who won 

which proved a notabfe success expects, to make the grade this spectrum SLadium this, after- seed Jimmy Connors — who beat t be Australian Open last 

when mtially produced last year. year. noon. him in the first round here- last December, was far too solid for 

,S Edited W bv h Tom P Ma?Gin t t^ I and FOLKESTONE • Recovering from an uncertain year. • fellow American MikoJFishbeefc 

ouhfuhed b^v ^Jierlaw of Dumrn LIS Baroncrnft * start, he recorded a 1—6, 6—3, • Mottram’s new status ns Gerulaitis won 6—2. 6—0. and 

the an nualis available inthfs *-45 Extrovert 6—2 win in 97 minutes against Britain’s No. 1 has not altered Fishbaeh probably wished that 

eo5n?re throSeh W H Smith 2 - 15 Boa S h Tumble*^ Tim Gulliksun, the right-handed Ms attitude to representing his he was still allowed to nlay with 
2d Km - 2 - 45 Tragus* American twin who on Monday countrv “\s l said in- mv letter the now-hannod double-strong 

Thin edition which covers' 3 - 15 Beige Prince** eliminated the holder and No. 8 . t ' racket which he wielded so effec- 

1977-78 and pays equal attention 3 - 45 Sir Bountiful seed Dick Stockton. , T ' ’ lively at Forest ^Hills la.rt 

to both National Hunt racing rA Ri.isi.E For a set Mottram .could not TTMIWIPC ' September to defeat Stan smith, 

and the Flat, contains a number 1.00 Chartist find the range with his serve— H LRIfflO Rnscoe Tanner, the No^io 

oF interesting studies: notably a 2.00 Soutra on which he has recently beep- ' BY |OHN BARRETT s«?d. had to work for his R-p-. 

fascinating profile of Martin 2JiO French pin working. The neat American - 7 7 -" 5 victory over Syd Ban. 

Molony by Ireland's most 3.30 Lord Melbourne repeatedly came to the net and PHiLAutun-iiA, jan. *.*» f Australia). The American left- 

, caught Mottram with short angled ; hander indicated that, together 

« - - -* volcys that exposed the English- . with Stockton. Smith and Brian 

W n/vf I ann C/lfifiBOtfi man's slowness on the turn-. •• to the LTA. I cannot play while Gottfried he will prnhahfy miss 


1.15 Baroncrnfl 
1.43 Extrovert 

2.13 Rough and Tumble** 1 * 
2.45 Trogns* 

3.15 Beige Prince** 

3.45. Sir Bountiful 


1.00 Chartist 

2.00 Soutra 
2J50 French pin 
3.3Q Lord Siciboume 

This IS 3 period when ihe Bank «* . U P muen » frv j p ,. v Forhirii Phvsieist ' and C/Th/'OCtl* “t an 's slowness on the turn. • to tne lia. i caunoi piay wnue nottfried he will prnnawy miss 

knows Uic money supnly when simpler suggestion T have often xniirpen ' 1 kJV'Vrt.JI'dULIU oWL'V'CJS. dlltluu ti,*. lpmnn chamipd mid-wav Paul Hutchins (the national team the Rawlings tournament at 

lhe gills market is only guessing made in this column— the issue beliof that Roush and _ throu-h the second set MottrSn manager) is the captain on the Q ueo n’R Club thc week before 

ai it. but while the Bank i»dcddr "fwdrjjed slock to aell to inw^ T b *j e h “ f d * h * 2 . cllQrPC f fMlfl was he«iiminc to serve -better chair - 1 don t mind him being Wimbledon. 1o praclffie with 

:ng .m any policy changes, the jjrs whn appear lo . be i sated , niIes bl at Leicester just beyond Stldl CS antl when n u niJ son . serving at the nian^t-x, hul 1 think Roger Dennis Ralston, tho US. Davis 

1 '‘ l *. s l sl .;*F k,M Rsllln5 re v ^> r °f ' ^ ’ his optimum trip in particularly gy STUART ALEXANDER 2— 3, was foot- Tan! ted on a second 9 1 rvf„i i ^r, , c °arh. whom the foifr have 

nnj chsnues it expects, '^hen it However, as soon as one holding ground. I am prepared serve to trail 0 — 30 and then important Davis l.up mail h pheaged tn travel with them Tor 

inarki prices down ahead of a makes any suggestions at all m give hiru another chance in SPONSORSHIP and pronintion said all commercial details served a second double-fault ta will probably he against France u ,„rh of the year. 

r:,l '’ s . 1 looks as il it is one is joining in a rather dan- the slightly shorter Hurst Green deals are expected to boost the would be settled befort*th‘i team lose the game, the heart seemed 1 would like to play in that. polish Nn. 1. Wnjtek 

i-u.kin-’ prcMiire on tne auihari- gernus game; for there is no chase. earnings of Scotland's World boarded the plan for Argentina, to go from his play. Mottram One must put this latest stance Fibnk. the 13th seed, gave a 

— — " “ - tively at Forest Hills last 

irraiane - September tn defeat Stan, Smith. 

8 tNN82S Rnscoe Tanner, the No. TO 

BV IOUM RARbrrT seed, had to work fnr his 6—3. 

. BY JOHN BARRETT ? __ 5 vfctorv nwr SjM Ball 

PHILADELPHIA. Jan. 24 (Australia). The American left- 

' hander indicated that. LugcTher 

with Stockton. Smith and Brian 
to the LTA. I cannot play while Gottfried he will prnhahfy miss 

The tempo changed tnid-way 15?.. 


through the second set. Mottram h?anager ) is the caplain on the Queen’s Club the week before 
was beginning to serve -better. c J ,air - ’ d l u n ? l 7 d ,»S !! i nf? Wimbledon. In practise wflh 
3 nd when Gullikson. serving at the manager, hu 11 think Dennis Ralston, the U.S. Davis 

2—3. was foot- fa ul ted on a second ^ ylt ? r ;h, , ,ul ? ,! h 5 **£5*5; Cup coach, whom the Eoitr have 

serve to trail 0—30 and then ^h e important Dj vis up mat'h encaged to travel with them Tor 
commercial details served a second double-fault to Wl, j preboMy he >nnee uiti^h or the year, 

tiled befort*th*i team lose the came, the heart seemed ^ would like to play in that. p n jj S f, pj n ]_ Wojtck 

would have raised MLR so far 
if u had nut been Tor the need 
in impress the market. Bui for 

r h.,L K n r cnl ) cls,!ls r)sks the David Morley runner My colour posters, bar -and hole] BMW. tile German motor car expandedi aided h v another Pickard was replaced by Hutchins series. Fibnk won 0—4. R— 0 to 

l nting accused or rocking what is Captam, to whom he concedes decorations, a whisky enmpeti- manuraeturer. had pur up a dnu ble-fauit that cost Gullikson all was well, until Mottram was prove that even abundant talent 

■ a highly unstable boat, and per- 34 lbs. tion. a Chrysler car commercial, scheme of a knock-out eompoti- hLs mti in the game . dropped fnv the 1876 tie against must acquire experience the hard 

Hie f:i m ry, 1 here is no need to haps that is in a way an advant- Winter and Morley could also and a recording with pop singer tion between tne winners of the Another break and a serve held France. One wonders what his wav. 

argue, ‘ircenwclls suggiwt that aRe u f t jj e svs{C m for the be . close b' involved in the Rod Stewart. Benson and Hedges, rhe John ; : ; 

ihi* market is teaming all ihc a uth..iiti «*«5 c„,.h f«.j 4 r« u-ui business-end of another race, the in the last World Cup series, Player, lhe Schv/eppes County, 

nun*, an J :aaj soon be reacting . " ULn ,1“ 2Lmile Robertsbridge Hurdle. in 1974. there were di, agree- and the Gillette Cup compcti- *-^9 j - A. A 11 ° 

ti. .-v.-rits n. far ahead that it ncv v Green wells. Hcre Britain’s champion ments over money among, the lions. Mr.’ Tony-Hille; manaaunj fl l°£fcTIir , HC; FA 8 liritlfT 

n al.j d.»i.-s pm pressure un i the though, and I hope their anm- trainer for six of the past seven team members. Yesterday Mr. director of BMW. fCB). said A iV ' Jl iUll y .U.1&1 

DiimK: !i>r the nub of the thing, versarv uruves a baonv one. seasons relies on Ramhliv. while Allv MeLeoo. the te. 2 hn raanaeer vesterriav “ T nm astnnlshe:!” .... ^ 

.... ■■■»' ‘.‘“o •inihiii'ilioe VSn.-h ft.uru u-ill ius in uie i«si vyuiiq v.u|i »*.-[ ics, riayer, me aviiwei'pes umniv, 

!UU.\ and :.iaj soon be reacting Z* " rJ [ \ ,, 21-milc Robertsbridge Hurdle. in 1974. there were disagree- and the Gillette Cup compcti- 

t" '-vents si. far ahead that it “ CVtr silence (.reenweils. j 4 cre Britain’s champion ments over money among, the lions, ftlr.’ Tony-Hille; managing 
n al.j. d.ii.-s pm pressure un the though, and I hope their anm- trainer for six of the past seven team members. Yesterday Mr. director of BMW- fGB). said 
Iiar.K; for the nub of the thing, xersary .proves a happy one. seasons relies on Rarablix. while Ally MeLeoo, the terfm manager, yesterday: “ t am astonished.” 


t Indicates programme in 
black and while. 


South-East only). To-day. 6.53 Heddiw. 7J.0 Trem. 

fi^O Nations ide Goes North. 7.40 Young Scientists of the Year. 
6.53 Sykes. 8.10-9.011 The Oregon TraiL 11.25 

7.25 Tha Wednesday Film: News and Weather for Wales. ' 
"That Touch Of Mink,’ 1 Scotland— 11.011-1 L20 ajn. and 
starring Cary Grant and 2.1S-2J8 p.m. For Schools. 5J5- 

g „®:l s “ m - *■ SfjK'ols. ColleuM. starring Cary Grant s 

UU., ^ »m and Me. 11.00 1-or Doris Day. 

Si tion:.*. folle-.-es. 12. 15 p.m. News. p.uo News 

1 IH» pebble Mtll. 1-45 The Mister 9.25 i Didn't Know You Cared. 

2 T : , "• n 2 ■ 0, Fpr schools. Lollegus 9^5 SportsnighL 

3-j 3 Regional News Tor England in is Tn r,i«ht 

i except l .mnl uni. 3.53 Pay School. , .. 

4 JO Touche Turtle. 4J5.Iackonory. Weather /Region a I News. 

4.40 Screen Tett. 5.00 John All Regions as BBC 1 except 
Cr.-vens \>w<round. 5.05 A lhe following times:— 

Trateller in Time. Wales— 2. 18-2 JS p.m. For Seho 

3..10 New •!. (Hwnt ac Yma (3) Haul v Dyd 

CITROEN yesterday announced support fur a team o£ three smote reliability and durability 
^ its official -return to motor sport Citroen CX Diesels now compel- rather than outright speed. 

after a gap of nearly a decade, ing in the Monte Carlo RaUy, * Citroen CX driven by the 

Two-car teams of Citroen CX which ends on Saturday,. Irish -born motor aarsMriei 

2400 Gris, in the bands of drivers The cars Citroen will use will m a n U ^ctI^ra Pa d dv H?okirk 

Achim Warmbold and Jean-Paul be in Group 1 - virtually was ,hi^^^e re^-dSlanee 
Luc, arc to contest three of the standard — form,' and therefore 20000-mile' London to Sydney 

7.00 This Is Your Life. MTV major rouch-roud rallies on the are not expected to be competi- Marathon last vear althoueh the 

7.30 Coronation street. ■ - usf pan. Report wuk . H oadiiiwn. i^s World Rally Championship tive against the highly absence of the major European 

8.00 "Grand Slam. starring R CPOr , ii.annw-s. Hl-i'p v ou ^. calendar. They will be the inter- specialised Escorts and Mirafiori manufacturers— with the excep- 

Robinson and wit 5J3 Dditu tin.* Sima* Kid. sji Cnwi- national Portugal Hally in j 3ls w j 1 j C |, Ford and Flat tion of Mercedes — rather limited 
Janet Leigh. roads, loo iicpuri -wusi. 0-15 Repon April, the Acropolis Rally in nnt th«» Wnrid p,u» the rally's value as a markoHn? 

10.00 News. Wale*. 1 J 0 y., B Wore Hrn.- Mav. and the Senegal Rally in hfihtmg out the world RaUy «w ™*y» value as a marKenng 


LZf pjn. Htpurt Wi-st . Hoadluiusi MS 

Waios. ija wwh Vou Wltc Hen? . ? I May. and the Senegal Rally in 

6.20 Reporting Scotland. 6 . 55 - 7.25 10JI0 A -Prime Minister on Prime I November. 

aiarrlng SooOia Lorca. Paul Newman 'and 
David Ml vca. 

A Burns Obsession. 11J25 News Ministers. D^d* iw* ’ 

and Weather for Scotiand UM ^ Evenings Standard ^ Csmn,/w.k*-As UTV General 

Northern Ireland — 3.53-3-55 p.m. Drama Awards. Sltvki? except: x^o-ls pjti. Pcnjwdau # -m -m -m -m 

Northern Ireland News. 5A5^2» Jn’P? NightGallcry. Newyddlon r Dydd. 4^0 Mirl Mawr. g it B ajmi till ■•■■Lana. riAnlrt ^/Vll vvtaII 

Scene Around Six. W54.55 Spot- ajnClose: Leonard ftarcey un Tro. *.nMas v djnM. • | Qfl GPil |W GA1 R WAi I 

light on Northern Ireland affairs. reads a poem by Hilaire htv wc»i-.vs iitv General iokiw IrJl JI.CRM kjVll IV VII 

1L25 News and Weather for Belloc. ezuipt: UUJQ p.m. itcnort Wen H«a«i- 

Northern Irdand. except S^he^oHow^ng 3 !!!!^^ 011 ^ 1S4J0 IN A sale of coLris and aeals or ea Q[sed b y Christie's, in 'ass 0 - WelsJi Valley by William Maa- 

C r ^ following times.- SCOTTISH totalling KSJKJl at Christie’s yes- elation with Hamilton • and der. 

7 . j m* - ... ANG! 14 1 - 2 S p.m. News anu road rwiort. mo terday. two seals of the Duchy Hamilton, at Charleville. Ennis- A rare and previously unre- 

M^andsniSSa^tBinninSm!^ «»■ n£». 2.00 Borne- ZESSmf^riJ!? P «Q , * W ReSlf l '' act and County Palatine of Laneas- kerry, Co. Wicklow, totaUed corded 18th century commemora- 

Po?nH w2^ ^BrS- S^th Si &a.W -Tite* Onh ' Tame ” Jer were sold by the Viscount tive glass, bought cheaply at' a 

To-day f Sou I ha mpton ) ; ’ 'Spotlight lSShT’ aamn* Mei‘ Fo'rr,r^ Brm s ™. s u.M^jcom/'To n5 U tUS^Ppc hwp V «. a | n f th* small West Country antique fair. 

South-West (Plymouth). emwkl iioo jazz concen— George oiitdii mn Laiv v’-tii lijis un out The George V seal of the *11 could moke £3,000 at Sothebys 

Mumnesi iriymaumj. Kelly. 22 Jo The Bis Question. Sf TSl'a. ' Duchv of Lancaster sold for SALEROOM on February 6 for its 21-year-old 

RRf ? £3.8W to the Londoh dealer owner. 

_ SOUTHERN Baldwin, who also paid £3.400 BY ANTONY THORN CROFT The seven-inch goblet, which 

Championship. Citroen’s aim', Riwreise. 

There is also some factory clearly, is to' attempt to demon- 


tO Screen Tett. 5.00 John Ail Regions as BBC 1 except at Rght on Northern Ireland affairs. re®»f a P° em W mLai 

rr. yen’s Xowsround. 5.05 A the following times:— IIJ5 News and Weather for “‘‘oc. 

miciler in Time. Wales— 2.18-2 M p.m. For Schools Northern Ireland. iJf d 

S..HI News. (Hwnt ac Yma (3) Haul v Dydd). England — 5JS5-6J26 pjs. Look at tne following times. 

5.35 Nationwide (London and 5.05-5.40 Bilidow car. 5.55-6.20 Wales East (Norwich): Look North AiKir-iiA 

(Leeds, Manchester. Newcastle); . _ _ _ "|NLjLIA. 


rrr rrrm~^ n r m 


A ' A TV SOUTHFRN Baldwin, who also paid £3.4110 BY ANTONY THORN CROFT The' seven-inch eoblet which 

in« o 1 "' ^ ,harbar ' Hrf" tw atv N To5?i^ afc ' t wfttoe' Mi? un p-"»- Suu«iom N».*rs. iOoHous^ for the George V seal of the has " God Save the !king. GR " on 

11.00 Pla? 5 School fas BBC L w^0, ' Pflm: " Thp Burner*" wnln' Day 5 ^ wS£'«da" SSrT‘ , «J0 $? unty pa,atine oF Lancaster. * the stem, was probably made to 

3.55 p.m,). n« M ^r hTSfn i^lhi c 5 m ■■t*w -B ursiun" starring omar sham -he two seals were made by £2$9£00. fp op p r i M yesterdav ^ e * )rate coronation of 

7.00 P.m. News on 2 Headlines. fou«. surgeon. gSroEMMi ®“ ra ‘ 1248 a ‘ m ' 'SStljuIf 1, 10 191 aRd C3Ch was £2,400 for an Irish George £ Mr 8 e I >o 1714 by such anti- 

7.05 Are You Happy In Your “ “ Dutch dealer, paid m mahogany bureau cabinet. SS S.5VS"" 1 * 

small West Country antique fatr, 
could make £2,000 at Sotheby's 
on February 6 for Its 21-year-old 

The seven-inch goblet which 
has "God Save the .King. GR ” on 
the stem, was probably made to 

BORDFR Tt ur T nr C I Eneksen. a Dutch dealer, paid — — — and the Calf’« Heart ri«h 

nL? zjjo House- ^ H.000 for a Scottish _ £3 _piece Sotheby's held two minor sales. On Mareh # . 


7.30 Newsday. tl-a pjn- Homer News. 2JKI House- « J» a ™ -nc Good WortVoHoived hr 

8.10 Julian Bream Masterclass. Norm Ean News HuwHIom. ij» p.m. 

9JJ0 Play Of the Week. 

and Sophia Loren, mao Bonier Nows SSSfJL PSi: 5 ^5n -“ir™. 

10^5 Arena: Cinema— The force Summary. ” — r - - - MontonLUe- M® “ MedallionersT-sold for £S 

« i HttM l 89 HowaVd Hawta Star Wars ” ; CHANNEL . 1110 ^ua Vliiorian pterores brought * ii ^ SSfSafSigSE 

; III BQ| I I BB 11J5 Closedown: Peter Jeffrey The Mid-week Film: -The Bumldra." Headlines. SJS py®a^ll , l , . lhe Dog n nni - 

on] hMI II ■■I 111 mi II ~ glTil — reads “ Wodwo " by Ted Channel Laie News. 10 J 2 Rising Wowl er. * J» Ulster Television News — — 

HH BQH B39 OH ■Hnutua Hushes. 9 Damp. UM epilogue followed by News CTMSTMds. 430 Reporu. M3 The ^ 

HHIHH M HH MbSMI Hugnea. and weather In Krcncb. • . Mldieeck Movie: Houseboat." Marrmc APPOINTMENTS - •• 

TO"a PTT TTl HPIINIM ^ Sophia Loral and Canr GranL UM Make * waaw ■ ■eaw-sw a w 

I Bah ' LONDON GRAMPIAN ' It cornu, followed by Bedilme. 

bd pd S pB m h H H swBoSsrS »» jy cS™rtSP B inbd.n. Directors for Tjeyer IRlrothprs 

■BB Haful Daisy, Daisy. 13-30 Sounds of Feature Film: ■■ Houseboai " sontna 120 Westward Wewu Hnadimes.. 6 J» Wen- vv»-vau A VF Ja. f Vl JLy ■ " " I-jIIt L/ 1 • 

t '{ [ I ■■■ I Britain. 1.06 News plus FT index. Cary Grant Sophia Loren and Martha want Diary. UO The Mid-weefc Film; ' ■ - 

: I I ' I m I i_2B Hein! L30 Crown Court. 2.00 Hyer. 12 J 0 KcBecUons. "The Burglars," siarrliw Omar Shunt Mr , n j„ w c»«h hi«s h>.an r . 

EjH BHH HH jn H§J HR .\rtcr .\oon. WS Hodlaigh. i 20 rPANin* appolnr^farket^ direetoAnd pany? K\CH HA&P'SniSS BSSSS- of WSSMgW 

pm iHl M HI n Heart to Heart. 3^0 CouBles. 4,20 GRANADA Damp. liW raim Yip HMm | th _ ni<r(Annn , n c r"- .STUART 5UN1NG CORPORATION fUiC.) 

^ ^ \ Hi Michael Bon tine's Potty Time. 4 AS 2115 YORKSHIRE director, on thc Board of LEVER .. n New \ork. LSTERN MINING -.COR* 

! | | | | Hb | Pop Quest. 5.15 EmmerdaJe Farm. W^ — lBSSrofi C ° ar Mr. Ravnionri* EUROPE).., hi be« - 

““ 1 1 — L — ^ 5.45 News. Crossroads. MB Granada Reports. 6*0 Mrs. MO Calendar iEmloy Mow and ★ ” heeler, an appointed managing director oi . 

ACROSS lock Hoimes (7) 6 00 Thames at 6 . • wish Yoa Were Hhrrr ... MO -To BcUnou! pdliiotwi. MO "iiousehuai" star- ,, - i ivinustnne hac 'n« n D* nl T O'^ctor of llambros bolh companies. 

1 re, 7 P™,h ZnH Vh*,ii tn ntfnr C»irh A Thler- starring Cary Grant and ring Cary Gram and Sophia Loren. 12.00 - >,r : *•*" UVinkSlono na« neen Bonk, has been appointed to the * 

1 Happen to !t\e in Autumn {b) < French resiirt about to offer 5.35 Crossroads. Gra.;e Kelly. 12.00 George' HamUtoo iv. The Old couple. appointed chxuf exeoutne of Board of HENRY SYK pc me >• » . * - 

4 Average boy could become a congratulations on progress . DURAL the Dubai smelter com- ■ x A. Gale, Mr. P. H. Funk, 

minister (fit f4,-5) : ; pany whose plant is scheduled to Mr t w «-ot« m n N - E. Nicltolls and Mr. HJLR. 

8 Spoil linos of vegetables (7) 10 Father upset and spiky when dahIO 1 847m Oiwntai tsi. uus Omcsa Gnitar Evctu»as. 4 js siory Time. 5.00 pm start production in October next Fowler, ’(Hr 'na ’rw nr * nmnmi J ? in the partnershto-jrt 

9 Trin current youth leader given Uic job (9) |lrL JL hn lr Dan i ,Sl - “““ ,n sho n Rewn®- 5J5 P«ror Poimvoi EruadLa .11 year. For the past seven years MeGpiphinonrf « 1^.., . '*“ ldi nG NEWSON-SMTTH AND 

With bad argument i“) 13 Supports until don’t move bm •.m. S ^sT^2io n«i JJS MMOtmi ud^oSmSfiliiSA ile has bcen - eneru! manager of h.ive^en annomiinf’rfi' ^ eidne ^ C0 - sl0L ‘ khr 0ken; i on January. 30. 

11 uiTvr to notice touchy subject command (4 5) . g— - „ m »» aSSSlfirS -^ummium Bahrain. ° f „ ^ t * 

to, 4) IS Impossible to please during lm ’ll S ^ ,n ^rion: Talk tu> David Music 1 S 1 . tm Niw*. 7 jh Ttw Ardn-rs. * tai ■ company. Mr. Frank Wallers has been 

12 A Jut of lucgage (4) day one bad dinner t9) SSILiMum. 7-«simi 2 « „ Mr - * v J- Cush, who joined the Mr. a. k. Uurnshv h-,. pS managing directw^or 

13 Rrarfly place the French fiive 17 Window through which to SSTSS S^.^sSSSuRSlL £ mm SJSS wTaJSS ? a f , t ^? T f, RH0 - USE ^/dmed dlreetnr ot finance 0 " S^^iV A ??J U T! 0W L. c ^ 

a name tn (5) read Times leader nn price of . «« «*>■ a.m. as croon or Scotland, nan 2 . 435 Buiwiog jujo Tb« world Tumahr ujo r-juwi J-»PHiiT last monUi, lias oeeo hMITHS INDUSTRIES! " nCe °* ln -- l“ c U k- and Scapdlnatria. Ho - 

14 i iiukii'L' ineredunt from freedom tT) V hp r»hw i nd 2 : mo «.m. wim 1 L U , ra r 7 ,Sl - s-« iiamcw.srd Bound Eiiropu quiz. lura a Boot:, m Bednme. appointed finance director. * “i 3 ? previously with Sperry 

<u i;rrc with many branches Blind alley— I am out of date n^dio 2 . iiK-iudins ijs p.m. Goon Liu»n- ,i ’ 1, ■ ^■H' liomcwuril FinaoLiai wiirw Tomsm. me w .» . , u ... nivac Minicomputer Chperatlcma. 

. m y .„ * u ‘ w 10 .O wirb Radio L nmWLiOS ul i«num»d>- . L3B Lifelines: . Lawnaep Today ui JParitanwm. U.45 M-ws. Mr. John B Hvde msnmm- Mr : Andrew TV antes has been 1 

3* (71 Ufsii Radio 3. and Commiinleatjon - part lsif voud For Schools <VHF> only}: 9JH fc m..jiDB rt “PPOtilled general manww ™ o • * - 

Iti Eaten snme portion given to il Quietly impudent to kill-joy ^ ^ raw aue . . . 7J» K^ordcr Recital is». and z.imulm p.m. dirLCtor and ^h-of Lxecutiv« of i^e 3 o a r d n r MFRirni’ruc?wrt^S n , Prefessor Samnel Ellon, hMfl'irf ■ 

a small hoy (SI |5 V W RADIO 2 ^n. and VHF mm w : MTOn . \ BBC Radio London iSL m SLS n J ^ 3l T al ha - s WOODS lh0 d *PW«eni oT rajSbt 

15 Han? this mnclorn music! (5i 22 Broke into film going to West- ^■wnb%wES^'hoW a LSS Woridirtdt. vuebcsh. pan-ss siraiuu 2 Wm end 94.9 \UF ^Jt oF^CHEMICAL BaI\k_ P fCai " meir,ber of the inJernational don^h-w* J. mpCrial 

-ill ikf firsi.dass return to end 15) wiSSki ,s, < »« Scicniillcally Speaking. UJ» WO >jh. As Radio 2 . nitJi Hair. uunt bAivK. Timber CorDontinn ^.K 1 ^ d * ^ boen appointed a BO®* 

V,...,, 1 ta .« Sit ubmS wnc ri-L-Iral fS* UJS Mb Holiday So-ita. 9J0 .Undoa Livo „„ * 1 ^baidiaiy exeiiillvc (1ic«tor-ftf CAMEafik 

re'..un i4i SOLUTION TO PUZZLE X Ali «« 110 T(1 ^ ujm p.m. Cali in.- lcj Mr. Thomas C MrLay has been 1 ! v y m 1 ^, and Co - Mr. u vector or 

21 Pour slate lets fair go by ,,.[ UWLfc MTSuinora' 1 Sons 'Si. MU Sbowraae, M3 Home Bun. ‘-19 appointed deputy managin'- riirpew * • ^ N - Hillns, deputv pIupF Mr <= w 

«•*- 41 No - **•* l&iS-JSAfnSrSFtfi: RADIO 4 te JR iffS SLS JS l£ ™ of OFFSHOR ? liirSxjr a SS In.ern a tioS a U , l ?r,Xr! nitH %£ft!SLJSS JS- 

»on L ?Si S 'Su^i«^^ 4Mm. 330m, 285m and VHF NlSi Umd«. UJO-CJo*: Aa £dm i ^idihr/ nf lhp Cunard i-ieam- a ' n( f J K ^ member^?’ .r n k Dany - tn ” of ^EDE.V ^ 

."•rnria Doak. ojo Waxsoacrt- Walk. . medium wave only London Broadcastine ^hip Lompany, and continues as :, r .. ul n ,h ? .Board 

ajs Sports Desk, ojn John Dunn CS» 4J5 Nows. Ml Parmins Today.' Sfilm and97 1 VHF ‘■ ommerc,I ti financial director. | :iw- ' ^ w * at, " u ck and 31r. J.l 

ring uary orani ana auuiuu uirai. wm i . , . n nw i u ,l_ 

Tha Adventurer, p-m un. BpUogae. 1 the Londnn dealer Bora, who 

ha rc>r a '■cwnsn » Piece oumeny s n«*ia two minor sales. On March 2 BonhamW Hones 

wort rotund by dated 1555 while -‘British Prime oriental works of art making to sell ™ most^ iSftt IteS 

uwkJiroomL 2.UB Ministers —a set of six ,old £27.284. with a best price of of furniture yet to appear In its 

'BJ5S- ESSSXEoU ta^fWO xo £S ^ for a Korean b,ue anrt saleroom— a ^Louis XV^Scre- 

fi^ So^dealer Bor^whS w . hlte vase - while at 3elgravia, S? d _ e _ Z™ *>y Bernard 

Michael Bentine's Potty Time. 4.45 

ACROSS lock Holmes (7) 

1 Happen to live In Autumn (6) 7 French resnrl about to offer 
4 Aw race boy could become a congratulations on progress 
minister ffii f4,-5> 

t FnwW Mr iu r u ' K ‘ ^ ‘"* n “ W|U Join the partnersbl^J« 
in shun tuik i. Rctwns. 5J5 Pirur Political EruadL-a.ii. year. For the past seven years ^*ELDrNG NEWSON-SMTTH AND 

tci. put 2 CS)«' hy ihe Labour Party. MO sk-rcndipiir. jig ^as been [jenerul manager of h-^oa u Weidner stockbroker! on Jamigrr SO. 

cfaesiral jConcert CL55 Wcaibvr, programme nea^. .viiPi a I unun, um Bahrain " have been appointed directors of * January.-**- 

uiLTrt Ban '5i. Resionai News. Luo iiy Aiuniiimun Bam-am. the Continental Oil Company »*- •" 

21 Pour state lets fair pn by 
(ri, 4 1 

23! determined to skip t4, 3) 

24 Action ;c< a rule please (3, 4) 

23 Burden with wood ( 6 |. 

26 C!u*:i! has uiwnih to set tie 

back 161 


1 Burn lu lake it easy by flro 
f 3l 

2 British scientist was distqnL 
n-.vr a date (7j 

3 Naval men Riven Inferior 

cards 10. 4 ) 

5 A rule awarded independently 


6 Lett in turn blouse capable 
of being cleared up by Sher- 

No. 3.575 

^QafflSH 00 flHBHnH 0 

BED Q. E ■ □ 

edges EBBanaacs 

9 E a E -Q E -H'- D 
eqqbcse : QH araaaa 
as ;,J 0 ' H . . h 


□ B 0 Q H 

G a a H 'H . ESS 
Q 0 BBHH 0 BO.v'SE 00 B 
n H U Q C2 El 


Sraiix Oasis. 4J0 Waxconenf Walk. 

X Medium wave ?nly snorts Desk. 147 John Dunn (St W5 un. Nows. 6.17 Farming Today. - Sfilm andfl? T VHP L '0tnmerclai financial director. i nw 

ssrjWBja jars «, ,■ ”• 

aurs-dr ss^^sse t'wrsa'ff s« *» 

s-APAnaf TBfBhcs saasr&TJsasB: £S 5 * F’gffis S! p r F»f"g 

Hnddlmcs. UJD The Show With Ten OBM Rem. *ULBS tn Drlialn Mow. 10J6 ronifcal Hailin Robinson Group. °" S £ o1 ar and Tie Manufacturera’ 

Ucm rtwriw Eddie BrabcB. U.B2 Brlnn Dally Service. JIMS Mondwc Story. LffpiMl «aOIO v- Federation, thc Tic mS® 

M.liiww wirh The Laid SHOW- OLM News. WL05 You. Uic Jury. X2J0 . J04m anflPS.S VHF «. .... - * hirers’ Awialion ‘'mnur.TC- 


l '} 

s- - tua 

Hnaqunca. hj. me suw wins Ten aa. ua news, uw id uriiaio now. D-Ji n 

I.cbv rtwrififi Eddie Bra ben. U.D 2 Brian DaOy Service. JUWS Mondnc . Story. viHpliai itaaiu 

Robinson Group. 

If.iuww Wlfb Thu Laid SHOW- U# tUM News. 13US You. the MS, WJ 0 1 94m aqrl 9S.S \7IF C4 „„. . - , , _ 

LLOS un- News. News. 12 JB pan. You and YouTO. W3 4^0 a, m , Grabafli Ooiws Uivakfa-/ j hl . a,l, « , .v Denby ha.? been 

Dimn l 4 Um Cu-wwAvmr Wb* t HO) Jeeves. tl2J6 Wearber, pro- Show (S>. ww ML-bai-I Aspd fSi. 1200 made a director of W, .VNQ F r 
KAU1U J oi«rw« vm Hra mtrm news, VHF lescepi London and Dave Cash 1 S 1 . J.W a.m- Rogi-r Slihi BOi\IL\M AND SONS ' 

fcfs am. Weather. 7 jh Mews. MB S B. I Regienai News. u» The world ac- wdb hfs Throe o - docft Thrill- is- rja . ' 

Y«ur Midweek Choice, part 1 1S>. M0 OH. . LS# Tbr Archer* 14S Woman - * London Todav 1 S 1 . 7J0 Ailnan l.ovr*--. ,, , . „ , . 

News. SJ0 Vonr Midweek Choice, naif S Hoar ffrom-!. 00 i Inciuding ;. 00 «!S 2 News. Oof a Line is 1 . 0410 Jonjihaii . Kjtw is, “rt^blon. nijnuginn 

1 S 1 . 0J» News, ms This Week's Com- ttdS Listen Wlih Mealier, un News, mo Tony Mamif" Lai*’ Show fS*. uiroeinp nf Knchc Ilabsoy liiuart 
jnaer. Brahms 1 S 1 . «J 0 The Vlctarlaa MS Afienwmi Thearnj (S*. SJ 0 - Choral LOO «,m. Priar Youhm' 4 Nlflftt i-TialK is,. (London), - hah boon appointed 


A living tT,h, ]W remains In riw~eanror \ 
nurslnj, well art* and rewarob *• 

Marie Cur-»® Memonji .'Fmuvilurwvi- ] 
will you add rouri. ? hose - aijopon . 
EC"«ra-uiy by datuilw, . .In •; 

S '*1 or b*au M t. .■ tWs himmnurUn [iijJ 
“ork now lull*. JOth. - yinro :•! -wivl'e* j J I 
«o o»ie in need. ' . .'L'. 

nr. JL W. Allard, direufu, andll ™ ^ ^ reet * ^ 


■ i 

Rtoaadal Tk ses 'Wwteeatey Jaaasay 25 1978 

l©ft Theatre 


Five wooub on five chairs logical treatise on the failure of 
(dated among a wrap-around the American family; a mixed-up 
audience with an unoccupied mother of four who, pushing 
central area is the glum setting middle-age; listens to her own 
for Susan Griffin’s American voice in the silence; a ridiculous 
feminist spin-off from Kennedy's nature freak who says, among 
Children. They aM have their other choice things,, that she 
problems which boil down to a wanted to discover the “ elemen- 
somewhat second-hand, second- tal self under the onion skin of 
rate expression <rf the feminine civilisation;" and a neurotic 
condition in this ugly made- suicide case devoid of father, 
dominated world. The acting is lover, husband, reason for liv- 
notoing to . write home about in S* etc -. etc. 
and at nh point does the enter- It is all too much and too 
tainment gel into anything long, badly written and wanly 
resembling dramatic form. The performed in a production by 
voices are heard in isolation of Kate Crutchfcy that allows no 
each other. Awful American wont for such ideas that they 
poeticism in the style of- Rod ma ^ have all chosen the wrong 
McKuen or Leonard Cohen' raen - tived the wrong way or 
josties uneasily against a muted rea d the wrong books. Worse, 
sound of catastrophe in the 60s. relates not at all . to any recog- 
We have, going clockwise nis ^ ble experience ■ but exists 
around the company, a failed Pretentiously in some wishy- 
a dress in early middle-age who wash y- hberaJ limbo where right 
nearly married a French actor, their Sld6 . ? en “g to 

was moved by Isadora Duncan “lame - and freedom from 
and is frightened of death; a “ aver y lies in the direction of 
t silver-blonde survivor of two c0 ®y communal relationships 

' > marriages, a father who walked W1 , th P®ople as boring as thexn- 
$ ' ? C t ’ oat ln the Depression, "49 lovers" 8elves ’ 

| and a commitment to a socio- MICHAEL COVENEY 

l i ... 

Almost Free 

The Irish Hebrew Lesson 

Adapted from his own 1972 fully assuaged by the pacific 
screenplay for The Hebrew host, and the brutal irruption of 
Lesson. Wolf Mankowitz’s lunch- a Pair of English soldiers is dif- 
time play launches a Jewish {“ sed hy ^guisiag the gunman 
season mounted by Inter-Action to" s^lSp Sd sS' 

and the Ben Uri Theatre Group cloak. 

with the hope that, at the end ' By that point, the two men 
of it, an independent company have come closer together over 
will be formed. The programme a Yiddish lesson and the young 
reminds us that this is the 5Utb k°y i® reluctantly impressed by 

anniversary of the foundation of fbe parallel drawn between 

the Habimah In Moscow; and Englis h oppressors and niaraiid- 
that illustrious company came in 8 Cossacks. Guzzling Pis 
about as a result of a successful gefnllte fish and white bread, 
season of one-act plays. he is amused by his host’s deter- 

This is an auspicious start to ruination to learn Gaelic for 
the attempt, for Mr. Mankowitz’s business purposes: “ For a 
play is as deft and amusing a thousand years my family has 
piece as you could wish for. Set been learning new _ languages, 
in 1921, a religious hosier is but this is ridiculous!” The 
studying Gaelic in his private rooftop synagogue is- evocatively 
synagogue at the top of a Cork designed by Norman Coates, and 
household. The rumble of battle 1 Ed Berman’s production boasts 
is heard outside and a gunman two beautifully judged, and sen- 
on the run steals in through the sitive performances by Leonard 
attic window. Initial hostility Fenton and Patrick Drury. 

(on the gunman’s part} is skil- MICHAEL COVENEY 


An armchair view of the arts 


The camera sweeps over deso- than a lyrical, adaptation but at just a touch too soft centred, 
late downland; two rustic -figures the first analysis Hardy fights too thin blooded, 
struggle out of the mist; a cello gainst rural life rather than This has been a good week for 
saddens a traditional' foil- tim* romanticises it. the makeshift .television critic, 

ft i* RR r * 0r good measare Scottish TV not least because of the profu- 

IT is BBC classic serial time weighed in an hour or so later sion of programmes about the 
and we are back in Hardy-land, with its version of a modern arts. The Melvyn Bragg 
Thomas Hardy is ideal fodder classic. The Prime of Mies Jean Spectacular has switched from 
for the treatment, with his ^rodie. Once again adaptor Jay BBC to- London Weekend and 
powerful doomed characters Pres50n A 11 * 11 had taken liberties altered its name to the South 
fighting unavSLgly agSS ^the origin at novejby Muriel Bank Show but otherwise 
SS T7L “vTrSSl *P"*» sbowm 8 us the attrao- remains thankfully unchanged. 

Fate m some of the prettiest tiveiy flawed Miss Brodie be- The Man is still too ridiculously 
countryside in the U.FL, peopled having outrageously in a New* handsome, dapper and charming 
with peasants, cbock-full of act- castle scbool before going on to to be a successful novelist 
ing opportunities. On the one Edinburgh to cause consternation (rather like the doctors in 
hand, unchanging rhythms of Brodie must be one General Hospital) but since fate 

life- on the other dramatic and ■ ™« ““t sympathetic messes has dealt him such a strong hand 
me. on the other, dramatic and m modem literature, almost the he makes sure we benefit by 

tragic events. perfect idealistic teacher apart hogging the whole show. As in 

Judging by the first episode from this romantic weak spot, a Roto All About It he invites a 
of The Mayor of Casterbridge, paah on Mussolini Geraldine few* experts along to set him off, 
adapted by Dennis Potter into McEwan makes Miss Brodie not providing an audience for bis 
seven parts, t b ii ? is going to be tmly sympathetic but credible, opinions on their special sub- 
a very different and much more aDd although the first instalment jects. Last SaturdayDilys Powell 
successful, interpretation than seemed like an unnecessary long listened to -the Bragg view on 
the recent Arena Karenina. 1,3111 er - the next six parts will be Mizoguchi. the Japanese film 
There the designers ran riot eas F rather than compulsive director, while Alfred Burke and 
sinking tangled emotions v ' ewi ^f- 1“ cJothes and manners Beryl Bainbridge were. I hope, 
beneath a sea of costumes and ™ e *“30 timing was nicely cap- well paid for managing to men- 
period detail. - more True tured, but wfa y they have to ruin tion that they had read 
Romance than Tolstoy. Potter, the Period feel by introducing a Simenon's latest volume, and 
and director David Giles, seem very unlikely train in a very watched television on Monday 
to be mounting a sparse ver- nnbelievable railway station night. 

sion of The Mayor of Caster - ■■ffwiee I will never know. The superficiality of the first 
bridge, concentrating on the More np-to-the-minute atmo- half of the programme was 
central character. Michael Hen- 3L here was available in HazeU. balanced by the tedium of the 
chard, played by Alan Bates, reasonable replace- second, where Andrew Lloyd 

who in a drunken youthful ey ‘ ?? zeI L? s Webbers new variations on a 

Anne Stallybrass and Ala n Bates in "The Mayor of Casterbridge ’’ (BBC 2). 

moment sells his wife and baby ^ ^ mafeog his theme of Paganini, written for 
daughter to a sailor and then freelame. No one can his cellist brother. Julian, were 

manv vears later when he has a PP roac h 0115 subject these days given their first (and last?) 

St^vor hL to Mne vSS without more than a nudge at rites. At least this showed us 
their return. P Raymond Chandler, and HazeU how- much we missed Bragg— he 

toeir return. is no exception, but it is one of has nut yet learned to master 

The easy mom w ts for flam- the strengths of the series that the cello. 

the^SnJl auction^LffwSS P™8ramme a week Setting George Melly. the Big feature in □ filmed sequence was Olivier «.u*.-n; any number nf 

Nicholas Ball has tbe rockney earlier had been equally light- Dada °f Surrealism, to indulge found to have burned out in a voneuru; and n..w trie ;,dajna- 

P at “W* his face has the weight very much on the lines “* w,th 3 ra mbl® around this art sudden fire before the camera turns of eta^u- n.nvls .nd 't he 

ct,Kf n 8]rt blend of extenial toughness of “yes. I know this- is an arts fonn which he has made his life crew arrived. Melly seemed exaniinaiiim.s uf artist and 

J 1?5 aod ,nte ™ a f doubt. _ For some programme but it does not have f orrn - mor * intrigued by this example movements in ,m. It i> uki thn 

vS Just hoId ™y hand The simple surrealist joke ®L I L al - , l sl . n _ an v_. of the attempts t» run general art* 

in a 

St. John’s, Smith Square 


^ — -1 *1 ^ | I nn ^, . - , . , T , . -——O' vuai UUIU IUJ UdliU TOP Simple surreausr iriRe mull m mi; Ml iuv Mm ill IM.S mil '^V'linai 

nf^hiro esrf lews violence, a squeamisb- tightly and see: you will prob- here was that Melly was *oina dream-induced images from his programmes, i-nimming i 

neSS , DOt * p P arent ^ ably quite hke it in time." The fo take us through toe mam moth surrealist past. little of everything, that conn. n. 

SSETEttfi^ ^ t ^ I***? ShlbWo“S DSSiS S U ™SS The attraction of both the *"of. Aod. W course toe news 

beeinwlto &e auidcs&'tehlna Jvokin?S>ndS, ■'f?e?h a rTr?P« s5uma -t^ e ar t which has just opened at toe Courbet and the Surrealist pro- 5? v erase given in the aris i< 

betireen ’ the ^“narf" S to! fn “Sind? ““J « ce “*fc Hayward Gallery in London. In grammes was that they con- graceful. 1. would no, be so 

“pr^nt’^wasdlscSicerttoE but iSd^ta^ri SS wSSfJ Inter ^ e ]f ^ fact the programme ended at nected with important exhibi bart ,f the i.rouranur.e maker, 

gf £ S? 5 sajsssa » iSSSSKs h “ »^5ffsaj-«.*as ;k 

»me’S gno^d.^Xeie^s ™ SSi£d hS on'^'k SSSSS^U^r^T^ Rayal" AcSSeSj- ™Z 

fe nietoraWo a view of Melly a-hed. At every sparingly, but the advantages ot Ponrjyed. 

with stage of his routine preparations encouraging an informed, ye I 

fmntafn for Ilie da - v the surrealist coo- idiosyncratic, view at a subject 

ahrara 1 seemed to bTenfiraS? nection was slotted in— Melly were reinforced in the repeat of 

SS* Shaving cut to surrealist paint- Vienna: The Mask of Gold. 

Brfrifln naintera or°eiSnarian ings which had been obsessed Michael Frayn’s on the spot look 

IaoSiese P DottP« M centenanan with razor blades; Melly dress- at the artistic life of Vienna just Foundation. Lisbon, has an- 
Toimnatnn mUniUrc h,n n in 8 allowed an insight into the before the First World War nouni-ed that its 197S Music 


I97S Gulbenkian 
Music Fellows 

The Calaustu Gulbenkian 

The early evening series of On Monday, the great visions of The music likewise describes a and have invited dryer textures 

choral concerts at Smith Souare, love and death, inherited from movement from toneless in the third. . 

■ v v nop Western myth and Wagnerian muttering through wordless To close, a German cream-puff 

in which John Fooies a u 0Dera imbued with Eastern vocalisation to a final section of — Strauss’s short choral diversion when the majority audience was wben Piloting. ^ as . a t>ain intellectually up- Johnson. The awards, worth 

Singers have explored a wide mygtjcaj rapture, were radiantly prettily held and altered pass- of 1935, Die Goettm im Putz- out of harm’s way. By chance. The journey to the Hayward staging everything in sight. £3,500 over three years, are 
and (for the most part) little- recrea t e d by the 12 singers- The ing harmonies— the marriage, zimmer. Rueckerfs poem, paint- however, there were two pro- was interrupted by visual jokes Perhaps, on second thoughts, intended to give young soloists 

known body . of 20th-century performance was technically according to the BBC announcer, ing an “enchantress” in the grammes about art last week — an elephant passing by; Melly, television’s treatment of the arts whn have proven ability the 

choral music «*rouoed around the very sure, yet not so smooth as of “ paroles ” et “ souffler ” to clutter of her dressing room who which were genuinely informa- like Hunipty Dumpty, astride a on a one-off basis is not too bad. opportunity to concentrate on 
nf otruiM and to rob the music of its necessary produce “poesie." The result may remind the English reader tive and entertaining.. Omnibus wall, or popping into phone boxes In recent weeks w« have had their solo careers. 

rv* edge of excitement and effort is an agreeable compendium of jnst a little of Pope's Belinda at 0 n BBC1 could harder fail with to hit random victims with sur- operas— Don Carlos and Die There will be an opportunity 

Framas Poulenc, has ^proved io individually, not all of the voices familiar modem choral devices, her mirror, transforms his con- Courbet, whose work is so realist messages. Unfortunately Fledermaus; ballet from Moscow; of hearing the three Fellows on 

be one of the glones « toe wr- M manifest the desirabre in substantial part those handed ceit halfway into a hymn to the visually accessible, and BBC2’s the whole thing turned into a plays of the quality of Granville Sunday. April 2, at 3.00 p.m. at 

rent S^^SOUf 3 n n Monday S red" - « « « 1 / : __ ■ » V« a. r»r f V tVlO 6*IAVtQn1 POOO A h*« Vimp nm f#» nnri> Til! *«■*»■• r» CAM luLAn n An# IkUi/iN limn fA DniiLMw'n AM J iVn T +1. rt 1 1fl x m n»j> IT.. II 

rent season, and jaonday s reel- deRree of heroic purity (ideally, down from Messaien. But art of poetry— the enchantress Arena was on to an easy winner, farce when a flat which was to Barker's Waste and the Laurence the WJgmore Hall. 

t ^J? ad i™^SL^ C »°i? I,t at itS we want a cast of three Isoldes, whether Amy has more to offer becomes the Muse and the brie- j — 

A rt!S three Brangaenes, three Tristans, than merely a virtuoso jew a-brac of her- apparel the material 
23IIL' and three Markes, all with per- tf esprit was not made abso- of her art, ready to be alche- 
reeftanfa of 1949 and — a pi«:e ^ itch j) communally, the j u tely dear, although the mised from void and chaos to 

SSiSffAnS Tf^?Bolo^!in?S sense of butiding to an ecstatic reading seemed devout and well- the trappings of Heavenly light 
TSn? vain and toto dying away to prep ared. A pity that at least (in James Erbers translation) 

vv Cii 

^) eaCh GnbSt *£FnS£ STtaT mysterious singly- SSStak of tSS wii not Wth his usual dramatic acumen 

?iSo^toe lS uttered prophecy of "dans made available in the leaflet and copious facility. ^Strauss 

receirine l’avenir," was beautifully graded. As if this were not a suffi- mirrors toe transformation by 
8 Squaring up to Messiaen was dent supply of novelty' and suddenly stilling the pattering 
h w nopms a bard^md perhaps even an nourishment, the recital also Rossinian quavers of toe first 

Messiaen s cyde rf five i«ems J nkifld ehal]e nge to propose to boasted short end-pieces of Pari into a length of ^-mn-Uke 

f^s one of the towering master- co ^ poser> and one great fascination and charm. For monophony, to familaar golden 

pieces of the century, > anm m . e which might have been some- the occasion Poulenc had been vein. That moment of cb ang® 
paroralarly, one panel m e eyaded on this occasion by replaced by Debussy, whose proved a tittle less mapeal than 
triptych ce^hrating erotic and before Messiaen, Trois chansons de Charles toe. score had promised^ because 

sacred love that is completed by PJJ. s ^ other way jorleniw began the evening, —either through acoustical blur 

JJ® ^JJSmSIS^SvmoSnv round. The academic-sounding This testimony to the ever- or vocal roughness at the end of 
the S^npM y. if faintly suggestive of a growing enthusiasm, in the last a testing concert the first 

D °La,Lc tiTSS Franck piano piice, belies a decade or so of his life, of the section, bumped along in very 

V0 »! P w 0U ?c most conception with vague, music- musieien francais for France's imprecisely pitched outline. Yet 

r*^JLS22E£- IS to?atiSto overtone to it-the musical heritage, bloomed with the effect of the whole was grate- 
innovative— composers of chpnti toeaxnMsu flourish serene clarity in toe SL John’s ful and endeanng^toese Straus- 

S m^S tod claves andTiter SsonancT^Slthough Mr. Poole sian choral cbippings off the 
been hying on the Itapii^c and marac^ ana . j ^ t advantage have workbench are mounting up to a 

SS23 sw. B SB."* 



cleaving of means to message. 

first-time (scoreless) listener, tahqimn of the second song, Friday night 

Royal Court 

Laughter! 'by B. A. YOUNG 

I have ..ways maintained that with an air from G.urh's Orica - £r °“ B ^n. 

you can make a joke about any- on _his tips. ntiB* f self on. . Frances de la Tour 

thing, provided it's a good joke. The text contains some ina- CP3(m), which the depart my pity as the ugly 

• r mift i 1 d« f i Putpr Barnes dental jokes, depending mostly ment deals. Is actually a part Rt^retary with no thought 
In Laughter! Peter Barnes oq but a ^ere is .for the Auschwitz gas-chambera beSuf^the end of toe day 

examines this proposition, taking a big overall joke beyond this A veteran from toe Auschwitz 5gL ot £_ west gives a chilting 
as his examples toe excesses of final encounter .it is submerged front, a stupid man with m over- performance as the veteran, com- 
Ivan the Terrible and the organi- beneath the greatness of the riding but unthinking loyalty to binin g false chumminess with 
sa tion of Auschwitz con centra- theme, which is splendidly toe Nazi cause, opens their eyes, T icious ambition, a plain-clothes 
tion wim n " He has chosen two adorned by toe acting of Mr.- but they close again once he is man intent on shopping Bis 

West - Mr- Suchet “d Derek gone. Civil servants tike soldiers, “ates. Ss long a?Eount 
difficult instiinces, but he has Francis as Smneal. . only obey orders. Auschwitz ^ blood- 

ined my belief because his jokes second play, for which toe --This is a shallow piece; in spite ca rdimg. 

are not very good. set descends at the conclusion of some good scenes. Like toe By way of epilogue, two Ausdh 

This is not to say that bis plays of the first, is a disappointment first play, it is acted ontstand- witz prisoners present a music- 

**- ' — ! -*.o two mde- We are in a German government ingly well tinder the direction of hall act, swapping jokes about 

not good department; Amt C (a), where Charles Marowitz, though his their situation. Only here did 

impressive, three civil servants engage in evocation of the gas-chambers, my principle come under close 

Timothy West, in a memorable the age-old' Civil Service jokes with piled dolls shovelled about examination. On toe whole it 
'performance as the Tsar, appears that depend on the use. of by-two “sanitation men,” is not came out all right The jokes 
first as an abbot his chamber reference numbers, etc. There as horrifying as it ought to be. ' were undeniably fnnny. Too bad 

overlooked by a great crucifix, is also much comic wartime chat Derek Francis as toe department they should be bound to cause 

Behind him, reflecting the cruci- that could have come as well bead contrives to show the self- such pain to so many people, 

fixion. Prince Odoevsky is dying 
slowly from the effect of an t u _u 
Official stake passed through toe fcllZaDetll nail 
anus and out of the stomach.. 

Ivan is not concerned with this 
matter: he Is more interested in 
the behaviour of Semeon Bek- 
hnlatovich, whom, he has 
appointed, in toe manner of 

Duke Vinwntio, to act as Tsar - The final concert of the Perhaps partly because of this, gence; and pitched the andante 

*?. Mainly Schubert ” series was the Guarneri are not a quartet just the right, dry side of sweet 

Guameri String Quartet 

while he acts as priest. 


to the 

■^Resuming, his vg***, .& tfvari on Monday .nigM by the playln^tamrtlately and -J-JLl f^dttUttoi-noa; 

men String C 

Xury by David Suchet . The GuaT^^S^a^trroun^of rare not "heartless per- finale, bright spiky and clear. 

Tsarevich has the qualities his ®5555 *St vlndrawrtise^toe fonne »: hut other considerations There was a pang of regret 
isSer likes, but he is too ?!? n _ td take Precedence. _ ^ey For tbe loss in the G major 

next " encounters his son tb' e .fomnieri Stzins'QuarteL It was .conrtraint, seizes the satisfying ! performance; 

Tsarevicb. played with a vnli • ? ua< 35 1 S53i?^Sd. S Pagination and grips the heart, by a whirlwind 

- ambitious for the crown. . and 

. „ n A ^ above all a wonderfully quartet D8S7 of the first move- 

it-a™ tnie him wIk third con- res P? nse , ast0 , - 1 5? Iy efficient Instrument scrupulous meat’s exposition repeat never 

in their rSdings, pungent in superfiuSSin SehEert But 
scienfet 1,111 freedom of movement t | ie j p a Qack, always beautifully this was otherwise another 
and expression to eaeb ‘ nambw* tuned. To hear ^hem is often powerful reading, powerfully 

in- modern dress— a 

rad r s& aa? ss 

unconquerable. Ivan resigns gleaming mechanism, so well — played toree quarte^by j colours 1 and that 

many of his conquests, and dt^ fed ^ it seeraf able to nm and^u- 



(J nm 


(and just occasionally, one aw Schubert shares with 

actually .does run) by itsdf, W®V £flS-M 0 i8n (which words fail to 

almost without intervention, with ^ chaJS^-ta toe adheiw vrith ““prebend, bnt which was so 
perfect _ ease. Such purely ^ aSle^i?iS and irreducibly caught 

mechanical moments are not “ e < gjjj y MpaaSy taken very in musie last week hi toe same 
frequent But they are releases, ' "igg ^ P SS5did tortS haU by aifford CuTZon “ ^ 
diffusions, of energy: and they ^Wf^They rauJbtS.« l0W cement of K491). Their 
OCCUr. jUSt often enough to thfl mtmvinv Ivriral immitsA 

prevent -the broad view from . , 
maturing, the long-drawn argu- 01 

well too swaying lyrical impulse' » fflj, ,S!F de 

the first • movement 

of energy — and stamina: a trip* 
01 let torrent which never once 

ment from reaching its eonclu-- Schumann's second quartet In F lost clarity or grip. 

sion, its highest point of tension, major, but cleanly, without indul- 




COLISEUM Credit cards 01-240 ! 
Reservations 0I-B56 3161 

vrorW: Frl 7.30 Rlyoletto 104 Sal 
seats always available day of pert. 


Tania bt 7pt 
The Dream. 

Sat 7.30pm La Bayadere. A Monti 
the Country. 6We Syncopations. 
AmoW- seats on sale for all peris 1 
10am chi dav of p erf 

EC1 <037 16721 Until Feb IS. 

morrow to Fed. 1 lolaqtfie. 


Evss. 7 JO. Mata. Tburv. 3.0. 




BOOKINGS ON 01-B36 7611. 

ALBERT. KS6 3070. Credit card fak 
836 3962. fW-Sat.) Mon.-Fr). 7, 

Thurt^mata. 4-30. Sats. 4.30 and 


" R OY JUDO’S soJencNd performance." 
S. Tel. “Talented JOAN TURNER." Dly. 

f 1 ■ • ■ 1116 show u. a 
delShL" p. Tel. OLIVER RE7UR'”~ 
AGAIN." Dfv . Mirror. 


. _ ■ tacartofre 

Ton L nugt. 730. Low price Pri 
Cpnoreve y THE WAY OF THE WOK I 

mg « 

(see seder. WJ- and 
Savoy Theatres... 

AMBASSADORS. •_ ■ 01-836 117 

EW. « TUos. JsS. 5. 


“ Wjnaruup -0 " 

^ ertect - sfiM" "■ New 

APOLLO. 01-437- 2663. Eras. 
Mats, TOOTS. 3.00. Sats. 5.00 ami 





JhM-.v . see It." Sun 
Monday td Thursday 8J0. I 
Saturday at 7.0D and 9.15. 

X Rd. 

ASTORIA. Chari ns 
or 01-734 4292. 

E 3 /!! J*"?. MoiL-Thun. 

Frldav and Saturday 6.00 and 

£13 0-55.50. Iinrant Credit 

■ttcf ijMiugie In advance. 

*' Intecttoju. appeaUng. tootitamplna a 
heart tnomuliw - Observer. 
'‘ELVIS 1 ’ 

wve and tpeOade of it." Sup. Tel. 
EL VI 5^ 

"SU99ea.rnKv eflectM." Times 
ELVtS 14 

Performed -Witt, a yorva rare In BrWJj 
musicals. _Tha show II -Orally had » 

a 25S!??.' ln „ tty Th 

‘Elvis' is fitanreirom. 1 ' SarrtMy Express. 

CA*«« ,D «- CC- O’ -836 6506 Mon. 
Thurs. BOO^Frl-Sju 5.45. 8.30. 

Seat.prlcg £2.tK> and £5. DO. 

top- Price seat.fiB.Z5 me. 

Omner and 





lmpeeaDW . . a masa r." 5nn. Times. 

I a SfiXTET 


DRURY LANE. 01-836 8108. Every 
night 8.00 sharp. . Matinee- Wed. end 
S*C. 3.00. 


“voted best -musical of 1976." 

DUCHESS. 836 8243. Mon. to Thurs. 
Evgs. B.00. Frl.. Sat. 6.15 and 9.00. 

"The Nudity is stunning." D. Telegraph. 

DUKE OF YORK'S. CC. 01-236 5122. 
Man, -Sat. 8.00. Mats. Wet). 3.00 and 
Sat. 5.00. 


* Tickets from £1.S0-£3.B0. 

Instant Credit Card Reservation, 
□inner and Top-pnce Seat £7.30. 

ELLE et LVI. CC. 01-437 2610. 

«. Walker's Court. Brower Street. W.l. 

Twice Nightly 8.15 and 10.15. 

PAUL RAYMOND presents 

A! An erotic adventure In French porno* 
r - graphy. "Good-looking men and women 
"V peiiorm *arloua permutations ol the 
sexual act." Eionlnfl News. You may 
— drink and smoke in the auditorium. 

FORTUNE. 836 2238. Evgs. 8. Thurs. 3. 
5a*. 5.0 and 8.0 

m Muriel Par low as MISS MARPLE in 



m Third Great. Year 

m GARRICK THEATRE. 01-836 4601. 

E*5. 8.0. Wed. MaL 3 0 Sat. 5.15 & a JO 


In the 




“GO TWICE." Morley. Punch. 

"GO THREE TIMES." S. Barnes. NYT. 

GLOBE. CC. 01-437 1S92. Evenings 8.1 S 
Sats. 6.0 and 8.40. Mat Wed. 3.0. 

1, fan the SECOND YEAR of 


The Best Comedy of the Year 

Last 4 weeks, Ends Feb. 18. j 


' HAYMARKET. 01-930 9832. 

c Preview Tonlnht at 8. Opens Tomorrow ai 
7.00. Subs. evgs. 8.00. Mai. Wed. 2.30 
Sat. 5.00 and 8. IS. 





Y bv N. C. Hunter. 


_ HER MAJESTY'S. CC. 01-930 5606. 

Eygs. B.DO. Wed. and. Sat. 3.00 and 8.00 



S.T. •* A poneriol drama." E.N. 

"GLYNIS JOHNS ptays brilliantly.” 

HER MAJESTY'S. CC. 01-930 6606. 
OpeiUno March 28 

■ in Lvrfte Brtcusse and Anthony Newlev'i 

Previews from March 16. 


Mon. a> Thurs. 9.0, Frl.. sat. 7. SO- 9_30 




Evgs. 7.30. Mats. Wed. and Sats. 2.45. 


15 IRRESISTIBLE." D. Telegraph. 

"A SUPERSTAR," D. fctprcM. | n 


D^zzXno Success. Rich Coloortvl Musi- R 

eal. Rear Family EnrertalnmenL" E. News 
Good Seats Available Now at Theatre & 
Agents, Also at Doors (except Sat.}. 

LONDON PALLADIUM. 01-437 7373. 



and Special Guest Star 




BOOK NOW— Seats £2-£6 

LONDON PALLADIUM. CC. 01-437 7373. 


FROM MAY 25 TO AUG. 19. 

LYRIC THEATRE. 01-437 36B6. E«. 8.0. R 
Mitt. Thurs. 3.0. sats 5.0 and 8.30. 

and Patricia Hayes In 


by Edoarda de Flllppg 



YEARS. Sunday Time*. 

MAYFAIR. CC. 629 3036 

Opens raes.. Feb. 7 at 7.0. 



by Steve j. Shears 

Outrageously tunny . . . Profoundly 

moving.” Variety. sr 

Previews from Feb. 1st. , 


OLIVIER (open stage): Today 2 Jo 'red 
pr mail and 7-30 Last perfs Ol VOL- 
PONE by Ben Jonson. Tomor. 7.30 Tbe 
Country Wife. 

LYTTELTON tprosccnium staocl Ton 1 * 
7.45 Tomor- 2.45 and 7.45 BEDROOM 
FARCE bv Alan Avckboum. Tomor 
1 0.MJjm Sir Gauta rad the Green 


COTTE5LOE ■ small auditorium}: Ton’t 8 
LAVENDER BLUE bv John Mac Lend nek. 
Tomor 8 HaH-Ute Tomor Lalc-Nipht 
10.50pm The Craodw Letters <al! seats 
5 Op, tuts 50 mins}. 

Maary excellent cheap seals ail 3 thcaires 
day of perf Car park. Restaurant 92S 
2033. Credit card bkns 92B 3052. 

ST. MARTIN’5. CC. 836 1443. E«?S. 8.00. 
Mat. Tucs. 2.45. Saturdays 5 and 8. 

26lh YEAR 

OLD VIC. 928 7616 


Spring season Jan. 16- March 25 
In rep. HAMLET 


Tonight. HAMLET 7.30 
Seats available. 

Next Sunday 29th at 7.30. 

THE GRAND TOUR with Isla Blair. 
Julian Glow. Derek Jacool and 
Timothy West. 

PALACE. 01 -a 37 6 834. 

Mon.-Thur. 8.00. Frl.. Sat. G.DO and B.40. 

•HOENIX. „ 01-836 8671. 

Evgs. 8.0. Mat. T*dav. 3.00. Sat. Pern. 
_ 4.30 and 8.00 


IB the Chichester Festival Theatre's 
production of 
By Bernard Shaw 

Outstanding revival of buoyant Shaw. 
Daily Telegraph 

Last Week. Must end Sal. 

TALK OF THE TOWN. CC. 734 S051. 
8.00. Dining. Dancing. 9.30 Super Rcvun 
and a: 11 p.m. 


THEATRE UPSTAIRS. 730 2554 Evgs 7.30 
Crucible Theatre ShcH.old, in 
bv Ron Hutchinson. 

' No! since ■ The Hostage ' have I seen 
an Irisn olay that has given me such 
undiluted pleasure." Gdn 

VAUDEVILLE. 836 9938. Evgs a: 8. 
Mats. Tues 2. as Sals 5 and 8. 
Dinah Sheridan. Dulcic Gras 
Ek-anor Summerhe'd Janies Grout 


P.e.cntor Agatha with another wne- 
dunnil hit Agatha Christie is stalk- 
ing the West End vet again with another 

ot her hend. shiv Ingenious murder 
mysteries." Felix Barker. Ev News. 

PHOENIX. 01-836-8611. 

Opening March ' 

The Leslre Bncusse Musical 
Reduced price previews from Feb 17. 

836 3962 i3Ex. Sat.). Eves 8.00. Sat. 
5.15. '8-30. Today at 3. 


18th-century comedy 

“ILLY. 437 4506. From 2 Fab. 
Mon— Frl. 8. Sat. 445 and 8. IS. Wed. 3 
<& Feb. at 71. Royal nahespeare 

Company In 


.... bv Peter Nichols. 

BOUNDS." 5. Times. 

Monday to Friday at 8 p.m. 

Sat. S.30 and 8.45. Mats. Thurs. 3.0. 

DMlv Telegraph. 

I lB 


^ wlth "Bountiful 

lwrrAw-r 55?„J! , 2tr Financial Tlmfs. 
,N5T A5iIr,f2.- F l?JS fED CREDIT CARD 
BOOKINGS ON 01-930 0846 

V1CTORJA PALACE. _ 01-314 1317. 

Evgs. ..30 Mata. T day and Sat. 2.30. 

. "A true lamily show." □. Tel. 

Las t week. Must end Sat, 

W n XaE 1 M ? u ? E - Denni?r Theatre. 336 £6' la 
JJM' ShalOTowre COmoiny. Ton't. 8 "O 
Charles Waod't DINGO. 1 Brill, 
gyardUn. AH seals Ef.50. Adw. BI-ibs. 

Feb. 25. 


sheer sp>rkhno sorctaclt? ” □. -ffi 

Mon 10 Frl. 745. Mars. Wed.. TWurs 
ft-J Saw at 2-00. S.OO and Sjen: 
Chnltfree and Senior CHS half price men* 

lo'-i J, . P;,v at aoo V- 

_«oa 1234 Spacious car oarb. 

W E E ?T M j l i^T fw THEATRE CC 01-834 nxJi 
Evfls. B.njj M»t Thurs 3 o ’*■’1 r ..o A a.o 
Tlckms Cl SO to £4.00 
Cwi ,, n ,, DRAKE'S DREAM 

.. *¥?*'*¥, Mu 4, «JL. Adwc nture. 
Reh-Jinc 9 " c Tlm ”- Many Mcrrv 
Retrains E. ripwt Rn>inc,na VZoour,” 
F. Standard. 

W uII EM r“t L - . n1 6 392.7765.’' Osens 

M“ Eva.-, e 30. Sat. 6 45 Jl 

Cmtury^ 6 ? ei, 3 i,t,llna l Revue of the 
lre ,s n S,; " ,e Boot- Now. Limited 
Tour ‘ ,3 WPOfc 503 40,1 or ‘ c, ‘‘ World 

Tw^e Niphtlv at B 00 and 10.00 ' 
“PfN SUNDAYS G.od and G.00 

■■ TnL— . MODEBN era 
- ‘■V’s.ta unarersdenred llm'ls what Is 


JS THEATRE. 01-734 1166 

Evds. B.O. Sat. SjO 8.30. Mpt. Wed. 34) 

Piavs and Players London critics award 
toe moM ratable thoalrleal 
*WMs In this country far a good man- 
years, a. Levin. Sunday Tlntat 

At 7 fySr town Sun->! 

PAUL RAYMOND prosenrs 

orinkand smoke In the andlforipm 

HOUSE. 267 2564. Eves. 

Victor Muon’! 
W Jfi v U° atr e de* Quart 
d Ivry. fEnds Sat.' 



730 1 745. 

,17 s — 5 and B.3D. 
World premlrre of 

_ by Peter Barnes 
See alto Theatre Upstair*. 

Eyeniim* a. Sat. _ , 



lings 8.00 



critic* vote 

Best musical ol 197~ 

MERMAID. 240 7688. Rest. 248 2835 
Mdn.-SaL. 8.15. Mat. Wet), ana Sat. 5.50 

"A WINNER.” D. Mirror. 

Spl> tickets filJW. £3JS0 combined 
d I imer- theatre tlckot £5.9S. 


SSL. 5al " s °d 8-30." 


’ ■*. Times. RSC. also a: Aidwvrn 
Piccadilly Theatre*. c™d'i Card 

ncrj.isstblo on our ffatr?t." fey 

▼ on may dr'nlr and smoke in the 

" Surcfirr. c ®““' A *CATHl5!£lC 0,nW ' r 

. " azs .*.- 1 

makes you shake with 
— LAUGHTER,- Gu ardi Jn. 


T£H' SH x ra® m^bEi 6 ’’ 

io 0 ° N 5^o° N 3.^ E ,A> - Wfc ' Sf»- 

Town Tli'-o 

CLASSIC 1. 2. 
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Financial Times Wednesday January 25 1978 


Telegrams: Ptaantimo, London PS4. Telex: 886341/2, 883897 
Telephone: 01-248 8600 

Wednesday Janu ary 25 1978 

\ long-term 

ng a 


H AREHOLDEBS of prop- panics’ lobby began to win a reserves) which- most companies tice, shareholders would be valuer" *nd by clarifying .who rales which altows bad debts 

erty companies are forced sympathetic response from a have been forced- to- employ to none the wiser. In addition, is' and - who Is not an “Jncjepen-imd tosspon. in vestments to bo 

1 * ^ nmi-r ^ to fly Wind.' They are few accounting theorists within recapitalise interest and other 'directors, ran, and frequently do, dent valuer But wilhoui discip- averaged .out .over a five-year 

Jfl ill® 1 iTPi-*H 1 rarely told just what properties A*® profession, even- though the outgoings. Interest that ' the leave the age, condition, loca- Jijmay powers the good efforts .period. 

XU I lijl L111.WA1 U/ fheir conmanv owns—" such ASC stwd 600 on *** demand proper# companies see as a taon, future rental prospects and .of. the RICS will take time to Given these precedents, prop- 

tf . - haih a for a 0,111111011 standard. for de- capital charge-— part of the cost any funding partner's ^ equity .jgter through the system and in erty companies may reasonably 

mrormaoon nagui new » j®®* predation for all companies, of 8 development In the same participation In a portfolio to tfo . meantime there will still be ^rgue for specie* treatment, for 

HE MOST immediate and reluctance of countries to differ- petitor.” They are rare# given Paced with the prospect of way as building costs— has to the imagination of the reader that 'extra element of doubt in the attempt to apply deprecte- 

A«it nf pntiati. their Dolicies sufficiently more than a bald figure for total mass auditors’ qualifications be filtered through profit and of the accounts. published valuation. tion standards formulated to fit 

)vtous danger arising out oi entiate their vvmmam* ^oUa value-- shareholders within a stubborn property loss to establfeT a taxable It could be. and is, argued ^Against this chaotic back- the needs of industrial com- 

le sharp increase m on prices, to sui won’t read pages of condi- sector, a head-on clash that charge, and once safely offset, that a professional independent ground, it would be unrealistic panies has highlighted radical 

? 3 gar-my-neighbour tactics, was stances. Ttus, as rem^ xs, is tional explanations." They are might have been very damaging channelled .directly back to the valuation takes full account of to - expect an overnight trans- differences in the accounting 

;oided with a fair degree of not surprising. It took time for often treated to accounts where to self-regulation in accounting, balance sheet all these points, and If further formation In property account- needs of the sector, . . 

lccess. But the second danger, countries which were over- revenue is boosted by a the Council of the English Insti- There are obvious drawbacks details were given competitors, ing, . But at long last the one way out of the iamasse 

•at of being trapped in an stretched even before the oil myriad of mysterious capitalised tote of Chartered Accountants t o an accounting system which rather than shareholders, would - accountancy profession and the miBbt u tl) gi] ow proper# 
lfiationary recession, has crisis to cut back; it took time ^ lSf.Jpif'dES V ° ted late year to avoid 8 ls dasl 8 ned more to take advant- benefit . But a. number of .Britirii Property Federation, investment companies to draw 

roved much more difficult for for countries which had long ““ SrtribSSe Salt — of tax reliefs than to inform oora^nies » the sertor. representing the major proper# up their accounts in a way akin 

>, industrialised countries to relied on exports and invest- Sfftata** THE CLASSiC TRANSFER Hg * 1 “Lgff SXm “=* 

vercome. The Organisation for mem as the basis of their growth boy." / «--- ----- lar 3 el ? 1* OTer c°me if proper# argument nejanse m^ aHHmue together to create a uniform itan manufacturing businesses. 


Economic Co-operation and to realise that change would be All these classic excuses for ment interest chaw become cue accounts bow tfaevralcu- accounts on 
levelopment drew up a plan needed. But last year the first non-disclosure are now being deductible) ™ “transfer” to Sc variety of di 

srtrs ‘fcssrs »- a “*■??*- as -ss. 

t , ■ . . , . a«a - u».ivwwB u. i ----- - ■ . , — ' ,r - man uiaoumciurius 

Jl ' ' how develop cnrapai1 jes were to make clear in t0 hold properties in their accounting system that is accept- jf tb e companies were allowed 

riddle of 1976. but its success domestic demand in thesecond j?™ , 

-except in the arguable case group began to falter. This is a fessiona i bodies involved in 

f the U.S. — has so far been structural problem rather than property valuation are locked SJ?"** on deveto Pn«"t to .break down the transfer '■ ards for valuers, ana wim an Bnt -there would be no ques- 

imited. Yesterday the Secre- an accident of the trade cycle, In debate of proposals to between interest and other out- oye to the recent property as as the proper# wen 

ary-General of tlie OECD spoke and one which the members of harmonise accounting proce- Profit after tax 2£00 ^ mgs t ? e ^. A ^ y «j nM) I eS «J 0 W Y dS b S l - er .^b they are appalled th at th e are concerned, of taking the 

I Chatham Hnnw about the OECD have a common interest durea and to impose far wider Transfer to unrealised stages of property development standards of accounting and dis: industry s .past reporting stand- annua l valuation * surplus (or 

t Chatliam House about the wam ' nave a cunmiou nueresi dUdosure on a part Qf ^ ]nterrst properties held for development, closure for proper# companies: ards have done little to reflect deticit) inl0 the profit and loss 

□am reasons for this failure, in solving. t f ie rar porate sector which up on development - 2,000 those in the course of develop- must also involve the valuation the true risks of the business. 3 ^^. That would only run 

First, he adduced the almost Protection to now has been left behind in ment, and completed but unlet profession. The BIOS has set. For their part, the property ^ another tax problem— the 

mmplete failure to agree on ^ g?nera ] move to improve P«>"t available for properties If all proper# com- the scene by issuing valuation companies are determined not Revenue might seek to 

aiitabie measures for discourag- Because it is a structural standards of company report- d ' stribimon * ,,5U0 ponies were to give this infor- guidelines. But the day wijl to be forced to provide depre- tas rM ij g ,ri gains at the Cor- 
ns the use of energy and problem, however, it is unlikely ing. ‘ " " ' mation, shareholders would behave to come when guidelines . ciation on their buildings under p 0 ra ti on Tax rate of 82 per 

leveloping alternative sources. t 0 be overcome quick#. In the It was the accountants' conflict: the proper# companies in a better position to judge how will no longer be enough: coin-, the existing accounting frame- pent, rather than the 30 per 

The U.S., because of its sheer meantime the prevalence of efforts to lay down depreciation were given a year in which to much reported profits depended mon and enforceable valuation work. cent, rate of Capital Gains Tax 

;ize, is the main hut by no high unemployment will push rules for fixed assets that started hammer out a. compromise. upon the capitalisation of standards, consistently applied, .- - The property industry may which applies at present 
neans the only culprit in this governments into taking special the ball rolling. Most com- But the depreciation question inTerest. Yet hardly any will be essential. The question take some comfort from the fact _ .. remrire 

leld, and the real seriousness s t e p S to help sectors or regions parties, property or otherwise, is only the tip of an ice-berg, public# quoted property groups of independence of valuers will that other sectors have already .... . 

3f the long-term outlook has WO rst affected and will, in did not bother to make provision All the aspects of property come anywhere near that stan- *&> &*ve to be tackled. Thie been accorded special accounting the neip or tne uwana Revenue 

aeen disguised by a slow rate part i C uiar t Increase the pres- for depreciation on buddings company accounting now must dard of disclosure. RICS has gone some way. to- treatment. TOe clearing hanks, to mm out anomalies in the 

af world economic growth and sure for protection. Even if the until the rule-making Account- be reviewed. The standard proper# de- wart * eliminating the worst for example, operate under a existing tax law and to tailor 

the tapping of new oil sources C nidcst forms of protection are jng Standards Committee pro- What sets proper# companies veloper's response to calls for a buses in this-area by defining special .accounting convention new rates to fit the accounting 

,e *** their accounts how they ealeu- accounts on a haptoaaard ^bl e t0 tb e industry. to show an annual portfolio 

£ late the “transfer” to the yarie# of different valuation; a present there appears to be valuation, without having to 

70.000 balance sheet. base% Some properties are uitle' common ground. The separate individual Josses from 

— — It would not be undu# shown at wst, some at alrec- accountants are concerned about, profits, they at least might be 

4.000 burdensome if companies were toTS valuations, some on the lack of professional stand- happy. 

*°2° to .break down the transfer R out-dated external aK ls for valuers, and with an Bat ^ere would bo no qaes- 

between interest and other out- U l eye to the recent proper# ^ s fa as t h e Droner# men 

mon factors everywhere have M f people unemployed Is case. They argued that depre- than the traditional historic cost And it is here, in balance-sheet hV 

been the extent of idle produe- extremely liigh. In this sltua- rialinn was already allowed for reporting method. After all, valuations, that another key fe 1 

tive eapaci# and a great tion> a prog ramme of job main- in regular portfolio valuations, these companies exist to invest criticism of existing accountin'* L : <Jn ; " : J 

increase m uneertaimy about i cnan ce and Croatian schemes that it would be impracticable In or to create what they hope procedures arises. “ : v^' r rj 

the future, itself partly due to — n ls a t present keeping per- and misleading to separate the will be appreciating proper#, so far, proper# company U 

persistent inflation and the poll- haps 250,000 people off the un- value ‘of buildings from their In order » provide- their share- shareholders have had to be - J| 

ncs w .licli governments employment register— is an sites, and that the depreciation holders with what they con- content with whatever their S '"?; M 

forced lo adopt m dealing with obvious political recourse. The charge on a large portfolio sider to be relevant information, Board decided to reveal about 

,l - programme is soon due for would wipe out profits available most companies already revalue their portfolio. 

The variation in national rates review, however. Quite apart fer dividends. In a letter to the their properties on. a regular Proper# companies can tell 

oi inflation and national atti- from the. representations of the President of the ‘English Insti- basis. ' shareholders as much or as 

tudo towards inflation is largely European Commission. its tute of Chartered Acnuntants There is a big gap between little as they wish about their F : 
responsible for the third aspect emphasis should be altered to putting the case against building an ideal accounting system for portfolios, as there are so effec- 
of failure touched on by Mr. van encourage the growth of new depreciation for the sector. Mr. proper# companies and what tive minimum rules of dis- - 
Lentii'p. am! the one he regards and more competitive industries Harry Axton, deputy chairman passes for accounting in the sec- closure. The Royal Institution of ■ • 
as mosf MTiuUH — persistent ini- rather than mainly to bolster a:..l managing director of tor at the moment The reason, Chartered Surveyors has gone 

balances of trade caused by the up the old. Brixton Estate — one of the surprisingly, is taxation. a long way towards establishing 

largest industrial property Thanks to a ruling in the uniform standards of valuation 
groups — wrote ** . . .it is famous Chancery Lane case in througbout the profession. The 
_ patently absurd that a company 1952, which constitutes the basic RICS published the latest of- IsgSSSP 

3S P rofitabIe 33 Securities tax case law on treatment of these guidelines to-day. But it 

g fl gfl a g| If II || | 1 ft should be unable to pay a divi- proper# interest. ' British stands aside from the critical 

JL W JfMJfmAW'AJL LV dend from revenue profits and property companies are. forced debate about hOw the companies p$?Ps v 

presumably, therefore, to stay to charge all interest on their use their valuations. 

_ in existence as a credible public borrowings to their profit and Property company directors 

— Ilj^iTHr company." loss accounts if the interest is can commission — as they have 

WW tM .Mr. Axton’s comment re- to quality for tax relief. The done in the past-—*, number of * M * v ** A f^ 

K-F Y ▼ v T fleeted the views of the industry ahsardi# of this practice is valuations on the same proper# «« peprech 

as a whole. emphasised by the device -(the while publishing on# the most 

. . Gradual#, the property com- typical transfer from unrealised favourable. Under current prac- 

balancc.s of trade caused by the up the old. Brixton Estate-— one 

largest industrial 
groups — wrote “ . 
_ patently absurd that a 

Ton much to 

JL W JfMJfmAW'AJL dend from revenue pi 

presumably, therefore 
in existence as a credil 

I C °Mr an Axton’s comr 

>3 ▼ Y MJLl VF Y T fleeted the views of the 

as a whole. 

Gradual#, the propc 

THERE was less disagreement It is by no means certain, ________________ 

in Monday's debate in the however, that either the Danes 
House or Commons on the with their bacon or t he I nsh 

. . ,, .... . . with their beef will react m ■ ■ m ■ ■ mm t 

green pound than Mr. John lhjs ^ or at at q nce llLii 111 

SiUcin. the Minister of Agncul- Both countries are heavily IVItll Hi 

lure, pretended. It was Mr. dependent on their agricul- ■ ■■ 

Silkm himself who said of the tural exports, and neither will 

livestock sector: “What is at easily accept a reduced share of . .. ■ * 

stake is the continuance of U.K. the British market One would I" 1*1611 Uly nGlp 

production or the surrender of expect them to fight very hard . . . 

our market to foreign competi- indeed to maintain their present Id tllG Ulty 

Depredation should be provided on buildings held by proper# Investment companies s&V 
they are finite assets which indue time will need to be replaced. ...” Vf - 

tte Acrrmntrnn Stoidorda Committee 


livestock sector: “What is at easily accept a reduced share of — - ja with a song called “short revolutionary operas. He once rigger, believes, with boat de- 
stake is the emu muunce of U.K. the British market One would rrienuiy neip people’’ which has raced to walked out of a performance signers that the return of the 

production or the surrender of expect them to fight very hard . - - O'.**. number-five spot in the charts, and affirmed that nonone would eommorcianv viahte «ailin« «;hin 

our market to foreign competi- indeed to maintain their present 111 the City written and «a,n« hv R nn rf fl ever pay to see them. commercially viaDie saiim^ ship 

tors ... 1 believe that we must position and to postpone any . . . . Newman it One of the operas currently **. not on!y P° sslb1 ^ but desir- 

act now if wc are to avoid a price increases as long as pos- *5,®^ Uku todo^o “ theyom ^ime^by ln Production is a courtroom *“» «> d has just designed the 

massive takeover by foreign sible. That is the first problem »S» -S13r«S 0 i« ^2!, S2 drama In 17tb<entuiy regional 12,000 dwt, seen below, to show 

interests of these two basic posed by the Government's «JJ* t S ^ d n S 0 TlL^o be SZSi ^ ’ w «ch lia Just «i«ta eould bm 

British sectors (beef and pig- measures. ?«« Jil ™»S! hullo^ “i»S S-tS* Nanking. This was considered a like. 

meat)." And it was Mr. Silkin The second problem is more nSfhsS^teu^d tS effect irftiCh P« rfecti y acceptable work in the . Sailing ships of the future 

again who concluded that, in fundamental. It is that devalua- K tS wflheTubtic 1950s M ' d on ' two °“asions wo^d^bodymany of the tech- 

the absence of the abih# to tion .of the green Pound atone ning bTreveSS nS?*%LT numbered _ Chairman Mao nological improvements made 

meat)." And it was Mr. Silkin The second problem is more x a °“ effect nhich havl T^ nbW Perfectly acceptable work in the . sailing ships of the future 

again who concluded that, in fundamental. It is that devalua- ^ S^?5trtjSl32 tio^fJJlrflheTubUc SdSSE 19508 M ' d on ' two occasions woSd^bodymany of the tech- 

the absence of the abili# to tion of the greenpound alone not made the? ta^k ning by reverS radte a Sio^ numbered Chairman Mao nological improvements made 

take other national measures, does nothing to reduce surplus JPJ*" has noti nade ^tbeir task mn^ oy several radio stations. am0Dg its au dience, The other, since the demise of the old wind- 

the only possibili# was to production. It is true that the ea *J e ^ m . r ? c |? lt m ? atbs ‘^j *. 0n ^ 1)35,8 3 number- -pe^aiijr performed for the jammers. Hull, mast and sards 

devalue the green pound. extent of the surpluses In the 5JJJ* ® ve s P° t 18 3 number-five spot a French Premier, Ray- would be made of steei y and 

_ , Community is sometimes exag- ^ t0 5h ° rt P^P 1 ® bas now mond Bajre> . from a sails of synthetic fibre. - They 

Surpluses gerated: they are often fair# JSSLJSf® - °" to 1 * 1 ? mijet favourite novel of Mao’s, “The would aSp cany small, but 

Ttm nnlv iliCuranMC hotwppn modest in relation to total out-jcox, yesterday appealed to the Believe it or not, it’s titled “tall water Marcin” about the ad- nrvwt>rfni HtorpI sn^min 

purBo'they do appear to be W and it too, Z£^T . H dSS,"5*E 

those of the Opposition parties a phen ° m ^S««‘ ^ the Macmillan Aooeal which f™ SunS’iIytiAS#, pelle# .to reduce drag under 

were of denree. and even then same tune consumption of most tne Macmillan Appeal which, arms like gorillas and long hatey . Whil . s&e ms only a sail He cahailates that such 

they U3l.te Libels of. the mrna products whore Z S S°& Ss wild averse 

wanted a 10 per cent, devalua- e lief nrovides^assistarice and ihelr ,,y ° U ° 0t tional ' opera is 1 in jrroducti on knots oh the long transoceanic 

tion over a 12-month period: £ £Z rare to Surer ^SSSi- c ^ ’• • China. m f£e ones routes and- points out that with 

the Tories wanted 74 per cent. , r * The mohev is needed to fin- * So far , ^ ere *** no. report? performed will probab# be present fuel costs many ship, 

at once. Mr. Silkin offered five h°W far t l due construction of special 25- C0 ^P a1 ?^. ^ long and restricted to - those with suit owners 1 have instructed their 

per cent now with the possi- 5^^2555 b IT ^ uititl and the ^ ”* Warner '® vrom^ion , ab # moral' themes. its re^ captains, to slow- down to pre- 

bill#, indeed the probability, of ^ ut cn !^ r n ^?L_ PO m» tn haup assistance to help terminally ill E 6 ?/ 5 6 dis “ isa criticism of appearance seeing calculated else# this speed to save fuel, 
more to eome. It was clear « SKe « * hort W>* ” «*. ewa daim both to brighten the life of the One of the principal question 

throughout that he was pre- *> £*"*2* IS 2£ S JoceS iS actualiy a "**•■** average Chinese and teen- marks over .tL. fixture o«SSu 

pared to accept the Tory figure. ,s n M 1 iL P f° r t oI 6rance. They claim that hance the standing of a unique concerns the availability of 

hut wanted the opportuni#. to neettS - mil th Cit ^ raioin- “ one “Steps very hard one ran cultural heriUge. trained crews. . 

?r*c ^toric money te ^th^.^ffennj SSiSTS? SFlfS — jT&fZ J? figH 

StafteL pr^endTtTSUt ^ ^yofo? rtf fiSSSTS Tair ships, ahoy! ■ 

however, that there was some- calls for a fundamental refonn etJual until fhe >‘ difc- I am . - _ furhS? sal# mid suA 

thing very like all-party agree- of the Common Agricultural eral 1 of V 10 * ® uest deep# moved. Is the world about to witness “ c 

Se“t that the British livestock Policy Mr. Silkin 3dit again S? ' : 

Rpptor needed to be helned and on Monday with his rhetoric 5t campaign by the Health Edu- _ . ing ships which dominated the a .?. oa i? f trained 

that* devaluation ^of ^e 6 green about “tta reil strategy of c “« 1 ^ oceans nnffl cheap coal, md 

u ., s th- nnlv method radical chance in the CAP that flown l “ e heart attac *^ which • subsequently cheap oil, banished *“*?“*» ancient skills of 

tere %£5£ required." It is anoth “ 26 «»L Peops's opera themto the realm of memo# ^f!“ ents wI1 

3 Ye? ff the parties agreed Sm!R5 7t*m£ ^ , u _ and the sepia photograph? ;* ^ “«■ 

among themselves, they have sion, however, that what has 3rtack victim oimself Murray Traditional opera has re- Midiael Willoughby, former @hsp VIIP 1 * 

produced on# a short-term sold- happened over the years has hom % t J e cure of f,?^f ar ? d ,n China for the tort ■***„ 0 f a 4Sfl ton square W&Crver 

tion. The theory behind the been tittle more than tinkering. h®althy eaan ° ^ more e ? er * Jl 111 ® s ™ ee ^ cultural revoln- 

devaluation is that it will cut The surpluses have grown, not .. ' ES™ JfS QQt £ t _1 *1 i. 

the Communi# subsidies paid shrunk. It Is the aim of eve# — . . . . . ' i. of lts associatiQ 5 s -r -^t TT*' 

to other Common Market pro- member of the Communi#, '.’SCi™!! 83 !, romance and co^ 

ducers which enable them to ex- including Britain, to produce Sing? small : tW 0 i° ld « op ® ras *?f ve flS V 

port to the British market at more food, not less. It# a situ- .. been newly staged^. . /i i\> yp TO Tl^:-. 

prices which undercut those of atlon which can only get worse The ever-inventive U.S. record- Vice-Premier Teng - Hsaio- / k\ 

the British indusiry. That unless the Communi# te pre- in£ industry has just come up Ping, how third in the hierarchy / \ J 

should force them to raise their pared to recognise that there is with a new way of losing friends arid once the arch-foe iff chair- /v: I 

prices and British producers already an excess, produced and offending people. With for* man. .Mad's reforming wife, / ™ ^ '^rvvS ' 1 

should have room to follow often enough at a price that the mer channels like racism and Chiang. Cbing. is known to have 9B8 wi. . 

suit, thereby putting the Indus- consumer is beginning to refuse sexism now taboo ( Warner’s been bored to the point of poll- 

.try on a sounder base* to pay. record division 1 ms come out. tical indiscretion by her modern 

Water Margin.” about the ad- powerful, 


Apart from the instructors 
and crew of the handful ot 

is me wona suuuc to wanes* « 

the return to those elegant sail- 15 . diminishing, 

ing ships whid) dominated the Building up a body of trained 
oceans until cheap coal, and sad 01 ? m old style and re- 
subsequent# cheap oil, banished ,,P l J n ? ' ® ncient skills of 
them to the realm of memory s? ilui s 11,6 elements will take 
and the sepia photograph? ' tune * 30(1 care and money. 





. 1st F . eb ' the rat0S of interest payable 

s. u jh ™*£ 




'.(including 1.50% bonus) . 



2 YEARS 6.00 9.ogi 

3 YEARS 6,50 '9 85 

Interest an aft Discontin ued | 5Sues reduc(jd byQ ^ 

uJSZZ.ntZf ■* i* «m»l 

• p ^ y5in “ n ? otax -« the basic rata of 34 !. 


b, I.M!iTom wS 

a* soon as possible ^ OWB 

wb Save safe with 

wrthem Rock 



1 'o-^ 

Financial Times Wednesday January 25 1978 



Wednesday January 25 1978 

Although it appears contrary to the free enterprise nature of their business, the big vehicle fleet users, 
the road haulidrs, see enforced restriction of competition as their only salvation during a tough period. Their 
critics, however, say their fundamental problem is inefficiency, and they would be less keen on legislation in better conditions. 




\t * m I 




aulage Association annual 
ncer, Ur. William Rodgers, 
e Transport Secretary, found 
mseif making a public wager 
i the credibility of a point 
ade in an earJier speech by 
.c Association’s .< president 
rat road haulage " as we know 
*’ was in danger of extinction 
/ pressures of taxation, legal 
.-stnetion and sheer economic 

Mr. Rodgers pronounced 
mseif unimpressed by the 
'gunient. Road haulage in his 
ew was a post-war success 
ory for the private sector and 
? was prepared to back his 
idgment with a £5 stake. 

This gap belween the in- 
ns try’s worried view of itself 
-a theme re-iterated • in 
umeratts speeches from Road 
.aulage Association officers in 
ic course of the year— and the 
olitical assessment of it also 
rovided the basis for a recent 
aper to the Chartered Institute 
f Transport by Mr. Peter 
’hompson, chief executive of 
ic National Freight Corpora- 
tor Europe's biggest road 
aulage undertaking. 


Mr. Thompson pronounced 
he industry ** declining in 
ibsoluie size, declining in niim- 
iers employed, fragmenting, 
ml making sufficient returns to 
replace its assets and offering 
a poor employment package in 
relation to industry at large.” 
^t the same time, he conlinued. 

the industry “is becoming 
technically mure efficient but is 
handing all this benefit and 
more to its customers.” The 
main cause of the malady, be 
maintained, was excess of com- 
petition. • 

It is not often, even .in the 
interests of academic debate, 
that necks are so prominently 
stuck out in the road banlage 
industry as was Mr. Thompson's 
in that speech. He rim the 
fundamental risk of drawing 
comments that his analysis of an 
industry with perilously low 
margins wis specifically true of 
his own Corporation and that, m 
effect, he was pleading in his 
suggestion for mm* tougher 
control- of entrants into the 
industry' fer the protection of 
the inefficient in difficult market 

Some of his figures, too, relied 
uncomfortably on short-term 
trends pitening downwards into 
the recession years- of 1975-76 
to . make general statements 
about the condition of -decline, 
but for all that the analysis, was 
one of the most challenging of 
the year. 

Its case was first that by 
switching to bigger and more 
fuel-efficient vehicles Cover 52 
per cent, of work done in 1976 
was in vehicles over 28‘ tons, 
compared with 38 per cent, 
three years earlier), the indus- 
try had bought in productivity 
improvements. • i 

Bui in the same period, the 
percentage or goods roared hy 
hauliers rather than manufac- 

turers* and retailers' own fleets 
had slipped 1.5 points to 62.9 
per cent. Furthermore, the 
industry was fragmenting, with 
the percentage of vehicles in 
fleets totalling fewer than six 
lorries growing slightly,' with a 
corresponding weakening influ- 
ence of the large. 20-plus vehicle 

the industry based on a Jordan 
Dataquest survey last year. This 
showed more than half the J50 
companies examined making 
returns ou assets at historic 
value of less than 10 per cent 
To replace assets, at least 33 per 
cent, was needed, he said. 

Mr. Thompson’s remedies 
were threefold: tu win from the 

ing); and a reversal of the 
liberalities of the 1968 Trans- 
port Act, which opened the way 
for “own account” fleets to 
begin plying for hire and reward 
and - • thus competing with 

One central question is im- 
mediately. raised by Mr. 
Thompson's remark. That is: 

it is acknowledged that new 
lorries cost between three and 
four rimes as much to-day as 
they did six years ago and that 
road haulage is a labour inten- 
sive industry’. The Freight 
Transport Association’s monitor 
of costs for the year to Septem- 
ber, 1977. for example, showed 
that haulage rales went up 16 

Desire to reduce 


By Ian Hargreaves* Transport Correspondent 

Most critically of all. Mr. 
Thompson said that during a 
decade in which retail prices 
almost trebled, selected NFC 
company records t again, it must 
lie questioned whether NFC was 
pricing effectively or typically 
during this period i showed 
increases of haulage rales 
between -13 per cent, and 148 
per cent. Thus Mr. Thompson 
was not surprised to 6c able to 
read out an extremely gloomy 
analysis of return on assets in 

present committee on operator's 
licensing a recommendation 
that in future an independent 
body should be able to prevent 
issue of new licences during a 
period of over-supply of 
haulage services: establishment 
of fair and legally enforced 
minimum rates (a suggestion 
right against present trends— 
the Road Haulage Association 
has only just dropped recnm- 
mended rates after pressure 
from the Office of Fair Trad- 

has the road haulage industry 
really sold itself so badly short 
in the last live years -as its 
leaders are now so vociferously 
claiming? The fact that some 
NFC companies, have priced 
behind the market, its competi- 
tors would say, shows surely 
that its services have not been 
efficient enough to merit higher 

Additionally, not all the 
figures agree that there has 
heen underpricin-; even when 

per cent, and the costs of fleet 
operation only 12 per cent. 
During the whole of 1977, two 
NFC companies put their 
charges up by more than 23 per 
cent. The Price Commission will 
perform a service by sorting out 
this argument during its current 
investigation of the industry. 

Certainly the Government has 
not so far attached any credence- 
in the hauliers’ warnings. Last 
June’s Transport White Paper, 
although many haulage men 

wel corned its distaste for the 
road to rail arguments tradi- 
tional to the "Labour Party Con- 
ference. was interested in road 
haulage principally in the 
sphere of more control of 
lorries’ environmental nuisance. 
And the only point of relcvam-e 
to private sector hauliers in the 
present Transport Bill is the 
granting nf powers to the en- 
forcement authorities to divert 
lorrie.i suspected of overloading 
five miles instead of one mile to 
a weighbridge. 

At Ihe same time, with its 
sights set un the EEC’s goal of 
lorry taxation by axle weight 
rather than unladen Weight, the 
heaviest lurries seem likely to 
take a second successive steep 
increase in vehicle excise duly 
this spring. 

On top of this, the programme 
for implementing the 8-hour 
EEC driving day is now accepted 
and will lead to extra costs, but 
perhaps more significantly will 
bring tough and complex nego- 
tiations with trade unions at a 
time when pay codes are still 
charging the atmosphere and 
when the industry's only vestige 
of a central bargaining point, 
the Wages Council, has been 
swept away. 

Cast into the framework of 
this political debate, the future 
for lorry men does indeed look 
gloomy. They cannot even look 
forward to major improvements 
and extensions of the motorway 
network such as have trans- 
formed the productivity of long 
distant-.- trunking jn the last 15 

years because Government i 
wavering ahum the future u 
the roads programme. 

Eut perhaps some ai least i>: 
Mr. Thumpsiin's and the Roat 
Haulage .Validation's wnrrie: 
are exaggerated. The drift to 
wards “own account” fleets has 
so far been slight ami surelj 
there i< nothing intrinsically 
undesirable about a <li.uhl re- 
duction in i he average size ol 
road haulage fleets. Further- 
more, taking a longer view, is it 
not true that the whole distinc- 
tion between haulier and "own 
account” man is diminishing as 
the former seeks security nf 
operation by much more bind- 
ing contractual relationship* 
with his client through contract 
hire, straight hire and various 
forms of Iea»insV 


Is it not the cast- also. Ihat 
the present clamour nf alarm 
hy the industry is such as we 
wuuld expect at what should 
be the tail end of a four year 
recession? It would be a fair 
guess that when manufacturing 
industry picks up to the point 
at which there is a shortage nf 
haulage capacity for the first 
time since 1972-73. the last 
people to be shouting about 
changing the legislative frame- 
work will lie the hauliers them- 
selves. They, with ranks no 
doubt swelled in ihe usual n Vin- 
ner hy. a new wave nf small 
entrepreneurs, will he too 
interested in cashing in mi the 
improved market. 


Idea in cutting distribution costs 


the greatest idea in cutting running costs. 

. - — ' The biggest names in groceries choose the biggest 
ame in semi-trailer vans as their basic distribution 

York Freightmaster has been cutting distribution 
, exists tor its operators since 1959 when it became ■ 
,fer : "SStain’s first frameless semi-trailer van. 

- The Freightmaster is built round a very sim pie . 

jphy: Carry more goods at less cost. 

: protection for your load: 

^ w The Freightmaster’s chassisless construction has 
• i -tet intrinsic strength. 

- ^ A drum-tight one-piece aluminium roof and 

:^^^-^>ntainer-style rear doors go on protecting your 
. - , : > U ! J [friable cargo from the ingress of rain and dirt for 
_ •:’!.'** 6 . -e whole of the Freightmaster’s long working life. 

And York give you the choice of 16 swg aluminium 
‘ dls or GRP with die advantages of a wipe-down 


CO deal in 
ymey opera ip 
>350 Freight masters. 

n-a cube for your money: 

of chassisless construction, Freightmaster has 


vantage over chassis built vans when it comes 
cubic capacity. - - 

jAnd Freight master's raised rearheadrail gives 
^fajjgh loading right to the rear doors - no unusable 

fl&e slim wall construction and door pillars mean 
■tfttenloadmetric pallets side-by-side, because 
tenor width is the sameas width through the doors. 
* Resuit; xyrthFreightmaster. you reduce costs by 


tr-f " rJ 

More payload: 

Freightmaster's frameless construction 
also means lower unladen weight - and 
therefore more payload capacity. Down 
go your unit transport costs again. 

More ways to load fester. 

With Freightmaster’s full width, full 
height access, loader's loads slide in and 
out unimpeded. 

You can fork-lift load the full length of the 
Freightmaster. York's standard fltxsr is supported by 
crossmembers at 12“ centres, and has been tested to 
5000 lb per fork buck wheeL 
The same close-pitched crossmembers also make 
an excellent base for pallet loading equipment Either 
way you win in terms of time saved. 

Side doors, rollershutters and fail lifts make life 
easier tf you’re offloading in a crowded high street 

More time on the road: 

The robust construction shrugs off day-to-day 

bumps and scrapes, as operators of 13 and 14 year old 
vans will teH you. 

Steel components also receive anti-rust protection 
in York’s unique Alchem pre-treatment plant 

Your Freightmaster spends less time in the 
maintenance bay and more time earning money. 

But it!s reassuring to know that you’re never far 
from one of York's 12 fully-equipped factory 
branches strategically placed across the country. 

More savings with Hobo: 

York’s unique lifting axle suspension saves money 
because you can change from tandem axle to single 
axle to suit your load pattern. What’s the point of 
wearing more tyres than you need? 

Tyre costs are proved to be reduced by about 30% 
and fuel costs by around 4% - measured and proven 
by the Cranfield Institute of Technology. 

At today’s costs average savings of around £330 
per year per trailer are typical 

Only York have Hobo. 

But then York have led the field for so long. 


A MacMarkels Freightmasterwith lail-Iift speeds 
shop deliveries. 

York Trailer Company Limited, Northallerton, 
North Yorkshire, England, 

Telephone; Northallerton f0609) 3151 Tfiler sftaan. 

iMi l y M 


' ' ' 

ft*' .: >vW>‘ t : ■4* :*-■; *■ ■■-■•:? *&■ t: J 

_ .....liSSir^y,*- *S - , 

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: ' 7/ r. v . . 1 

■ ,. « . , V. 

*_ •>"■-, ' • '■ • 
V .•*»'"<■' -at--: 

|>.- V'-‘ Vp :,.: ' **&*. ?«** * > .'4*. , 

N OJr '-.^ 

'^‘v. v 

ESSi-V-- :; v? *• y ^ £•£. 

7^7: ’7 ,.y;i ••;•;/- • 

These days Companies that can justify- 
paying cash for a fleet of trucks are few and far 

And with so many other demands on cash 
flow, can you really afford to exhaust your capital 
and bank overdraft facilities? 

Consider Trucklease as an alternative funding 
option. Trucklease is a complete leasing package 
for fleet operators backed by the expertise and 
immense resources of Lombard North Central, 
a member of the National Westminster Bank 
Group. With known rental commitments, 
Trucklease will enable you to plan more accurately, 
whilst conserving your capital for other needs. 

So our message is simple; if you really 
know 1- the ropes you don’t have to tie up capital 
in your transport fleet. Call us at any one of our 
110 branches (we are in your telephone book) 
or at the nearest Regional Office below. " 



North Central 



Lombard House. Cursor Street, London WIA1EU 
Amemberd the National Wbstainster Barit Group 

North East & ScoKrtioroe 71 f 44, North West 06M2B 0551.M£*arcl021-7448577.SoutfiV^st02722S496t 1 tfethThames0t-349313t,SoumEBStQ2735fl71SL'' • 
Further aetata d ail <or credit ana hiretaciliiies aieavatfaucv.iuwirt obligation tree of charge upon request. Credit or hire iennsarenatavaiable to posansunder 18 yeas of age. 

LAST YEAR was a curioos one 
for British transport’s relation- g£C j 

ship with the EEC, beginning as . 

it did with the U.K.’s presidency TIW 

of the Community and a speech ' 

to the European Parliament of LORRIES (OVER 34 CWTJ 
far-sighted idealism by Trans- 
port Secretary William Rodgers 

and ending with a scramble for __ . 

agreement on the major issue Max 7 ^!^ UOU5 
of drivers’ hours. arnrH18 ~ 

The very fact that the debate present 

on the driving day question pro- 1 . 12 J 8 
reeded with such volume within 7 ' 7 79 
the U Jv. transport industries ' 
and at Brussels with seldom a * , rfl 

mention of the only genuine .'-l— 

issue at stake; the safety of road Daily driving period: 

vehicles, is proof itself of the ■ 

pragmatic level at which the present 

whole discussion was pitched. T.1Z78 

The eventual outcome was 1 - 7,77 
much better than many opera- 1.10.79 
tors had feared, with a three- 1 . lil 


Max. continuous 

1. 7.79 
I.' 1.81 


1. 12.78 
1. 7.79 

1. 1.81 

5 hours 

4S hours 

4 hours 

10 hours 
9. 5 hours 
9 hours 

8 hours 

yM r phase-in period agreed and Wnld „ d fortnight* driving perie* 

an f effective assurance that none , L * 

of the regulations would be present 57 hour* per week, 
rigidly enforced during the first 112 hours per fortnight . 

half of this year and an even 1.1278 

longer running-in period for 1 . 779 S4 hours/ 106 hours 

the only stipulation likely to 1 . 10.79 

cause real problems: the { m lt81 48 hours/92 hours 

of the regulations would be 
rigidly enforced during the first 
half of this year and an even 
longer running-in period for 
the only stipulation likely to 
cause real problems: the 
requirement that all articulated 
lorries over 20 tonnes cany 


5JS hours 
5 hours 

4.5 hours 
4 hours 

10 hours 
95 hours 

9 hours 
8 hours 

60 hours per week. 

118 hours per fortnight 
57 hours/112 hours 

54 hours/106 hours 
48 hours/92 hours 

standards, such as exhaust 
emissions and noise. 

Debate continues within the 
community about relating the 
taxation of heavy lorries to axle 
weight rather than unladen 
weight, hut this issue becomes 
increasingly academic for 
British lurry owners as last 
April's budget made one size- 
able leap towards these values 
with increases mainly between 
25 and 55 per cent, and it seems 
reasonable to speculate that 
there will be a similar increase 
this year. Although a case exists 
for this upraling of vehicle 
excise duty for lorries with the 
heaviest axle bearing (much 
research shows that such, 
vehicles cause proportionately 
the greatest damage to roads), 
fleet operators will still be able 
to legitimately complain that the 
Government is, within the terms 
of its own argument, overcharg- 
ing many other road users.. 

One way around this for 
Government would he to slap an 
extra “social and environmental 
costs'* tax on road vehicles. This 
course was, however, specific- 
ally rejected in last June’s 
Transport White Paper, 

either two drivers or a techo- drivers or offering fewer trips, not much more than that, about although its subsequent remark 
graph if the daily driving dis- Another special difficulty for the Channel Tunnel, but the jt would take " social and 
tance exceeds- 450 kilometres coaching operators involves the one of most immediate concern environmental costs into 
(281 miles). transition in October 1979 from to road haulage men is that of accoun t, along with other 

The programme agreed for the fixed Saturday to Saturday vehicle weights. related considerations such as 

introducing the rest of the regu- W eek to the rolling week. This No official advance in the the need for fuel economy, in 
laLons means no-one is likely win make it much more difficult Government's position has been deciding by how much road tax- 
to ue seriously affected until f or companies to give their made in recent months, with ation should exceed the directly 
the end of next year when; the drivers' long-week-end leave Mr. Rodgers sticking to his line ascertainabre public costs of 
driving days, comes* . down to periods, whdeh are said to be that no initiatives are planned. r oads" was again not impeccably 
nine hours for lomes (com- extremely popular, in return for Ther e are grounds for believing, i 0 nf ca i inipereauiy 

pared with the present maxi- ^lid periods of duly in excess however, that the U.K. Govern- Althmish some of the hysteria 

of “Vf too “? yriS L m T n ment wou,d l00k 'to cmiaUy a b™r™S-Arnaut S " iJ, have 
permitted period of continuous coach tour -operators offering a t a new proposal to permit subsided i^ the last vear or two 

driving will be reduced to four slightly shorter tours. . The lorries up to 40 or even 44 tons S cannot be an/ d“ubt that 
and a half hours (now five). ur aa t * uierc cannot ue any aouoi inai 

slightly shorter 

id a half Hours (now five), retention of the fixed week is, grass in f 0 Britain (the present thTrons^aimTon The operation 
Operators of both coaches and however, high on the shopping limit is 32 tons), provided that hS^vehMes both nhS 
mes are now taking stock of of UJC officials as. they the axle configuration were 

Contract Hire 
comes naturally 
to Godfrey Davis 

lorries are now tiuung stock of 0 f UJC officials as. they the axle configuration were rLJ 

these recently enounced attempt to renegotiate soma of suc h that there was no increase ^om e mor J 

changes and although the official the small prim <rf the hours tons per axle and so long re 

position is still that a 20 per agreement dunng the coming as there were some parallel Beverei 

ce ° f t los f of Productiyity wiU year. accord on a range of vehicle Iftll 

£80m- a year and the road ]V/f AfATlV!) V6 
hauliers £450m., everyone is vv a-jj 

seeking ways around the rules. For the straight, long-distance ■ • . j. ■ d M B® 

An imponani factor difficult han jier or coach service, there AMinPi 1 Uittfl 

to assess is the attitude of jg going to be no legal way ft. |^BBl 

hade unwns to the reduced round the fact that many single- . IIbD W^I® B flfll 

hours. There is not much doubt manned journeys of the present - 

that the union attitude will be win become impossible when ha IHi 

demanding the same pay for t ^ e f^i eight hour day law . ■ OfV||rC IBMlI mm A 

fewer basic hours, but whether becomes effective in 1981. The BBUfcMBB 

this will cause critical problems bigger coach companies are • 

will depend much on the state talking about staging posts on A* MKt ' Btf MA 

of Government incomes policy tb e main motorways for switch- V Jft MAM Bl 

at the time of the changes. This ipg drivers, but direct freight III UIJQi ' ' U 

will be particularly so for the trunking with a single-manned V aw 

state-owned National Freight vehicle from London to Scotland u 

Corporation and its '42,000 wll be out of the question. This 
drivers. There has already been shouldi as British Rail has not 
one strike over the hours and hesitated to point out, provide 
tachographs issue this year, but some impetus for .the growth of 
this was confined to Humber- jts own freight sendees. 

Sld . e : . . . Apart from hours and tacho- 

Already employers in road graphs there has been little 
haulage are trying to judge concrete to report from Brussels 
which way to play the issue of on transport front this year, 
tachographs for articulated ^though a number of interest- 

forcement ^-“d^s b«!mea ibo U t“o1he I friSgi een FbrlurtherinfalTTWli^ 

fli ^ninn The leaSt 1US « l7 ° { **** ^ 
able of the union fteen a rebirtt| ^ although 

leadership to the “spy m the| a • 

cab,” tbe present policy is to 
lay low and see whether Gov- 

ernment ever becomes prepared m Bi 

to take on the lorrymen over ■ f g . 

the issue and, if they do, whether I ■ If 1 

it wili be prepared to see em- ■ -ft • B B " B ^ H 1 || 

ployers negotiate their way I A AK^ ftnwft Alb 

around the confrontation by 1 
offering cash in return far ac- I 
cep tance of tachographs. I 

going 10 
not less 

Ian Hargreaves 

Car & Truck leasin 

For further infoiTTratbn,telephone:01-723 9051 

T/ieneu' Ford Granada: emphasis on engineering. Tachographs 

Your Ford Leasing Dealer can 
save you even more 

T he benefits of leasing Company cars will 
already be well known to you. Your capital 
is not tied up. You have only a limited 
financial investment, Y'ou can more accurately 
estimate future transport costs. You don't have to 
worry about depreciation, maintenance and 
replacement. And recent changes in HP and 
credit agreements make leasing even more 

\\ h.u nou iu.iv not know is when you 1 cj?c 
from a Ford Duller sou on expect all these 
e.Mr.i benefics: 

1. Ford .ire funous for their reliability and \ alue- 

2. Ford’s wide range of- cars should meet all your 
Company's uonnal requirements. And everything -is 
on one agreement. 

3. Ford’s large dealer network is able to give you fast 
and cifiriem service. 

4. Ford's- up-to-the-minute cars will culiancc vour 
Company image. The handsome new Ford Granada, 
is a typical example. 

There is a Ford Leasing Dealer near you — an expert 
on the le.iMiig of Company cirs. He'll be happy to conic 
and see you. And you'll be surprised at how much time 
and money he can save you. 

lust post die coupon and \\ ell arrange ibr liim to get 
in touch with eon. 

l'iej -c arr uige lor one of sour Ford LcaMoc: 
Dealer* roeotiLia me. Mv Conipany isiruercsted 
in the indicated Ford car mi'-ws. 

Granada (200u-2800cc) 

Escort (109S-1599cc) 

•=*&===*&*'’ I I 

Capri (1300-2994cc) 

Cortina (1 300-2300cc) 

Fiesta (957-1 300cc) 

To: Ford Leasing System I /327. Ford Motor Co. Ltd., 
Laglc Way. Brentwood. Essex CM 13 3BW. 

1 *. ."Mcrcd in LncfanJ Nu. 2.<5+l6 FT/3 


Certainly to judge by Ur. 
Rodgers* behaviour so far on the 
wider question of the BBC 
regulation to make tachographs 
compulsory for all domestic 
goods vehicles over 30 cwt and 
for domestic bus and coach trips 
over 31 miles, there is not much 
chance of Government making 
any running on the issue. 

Mr. Rodgers’ refusal to accept 
regulation 543/09 pa ~ tacho- 
graphs has led to the initiatio.n 
of legal proceedings against 
Britain by the ..Commission 
which ought to' eventually end 
with action by! the European 
Court Faced with- this proce- 
dure,. the Government has 
spoken loosely of reviewing its 
position on tachographs, bat it 
remains unknown whether this 
is merely a form of words to 
avoid deliberately affronting the 
Commission or a genuine accept- 
ance that defiance cannot- be 
indefinite. . For the present, the 
best advice to fleet operators, is 
probably to forget the whole 
issue as at seems certain to 
remain unresolved until after 
the next General Election. Mean- 
while the Co mmis sion 'itself IS 
stressing strongly in private that 
it has no stomach for. a fight 
with Britain, over the- tacho- 
graph issue. 

Coach operators will probably 
be, more seriously affected than 
most by. the .shortening -of the 
drivers' day and . week. 3>ay 
excursions, which may -involve 
only a few hours actual driving 
can quickly clock up for a 
driver the eventual BBC limit 
of 48 hoars In a week (the limit 
is reduced to 00 hours under 
phase one of the regulations) 
and this will mean coach com- 
panies either employing more 

The experts in Company Car Lea&ng 


Your costs are known in advance 

• - pkHS not only allow you to use our capital to 

; so you can keep exact track of your outgoings. d ^ 

There is flexibility of commitment 

.Unlike car finance plans, with BMI vour rnmr.™,- ■ 

Arrangements forfeed terms are also available. P Les * 

Improved cash flow 

into cash on a lease back atraneementTh]?/ by y °“f compan y 
pay And all rental costs are fully allowable w re n ° c ^ cposit5 to 

I Posido n_ * ” — ; = — ■ ■ . V » • _ 

n Company Addrecs " " 


*'*1 Vi i 


? r* ? 

1 v I 

Financial Times Wednesday January 25 1978 



e trends 

3 ’ 

& >i •. * s- 

V&H 1 r l 

aH 3 "?*»• •?■ f f f: 

X .* ■■> ■ -. ft. . 1 j * 


. R. 

i/f U : ? * t * 

THE ROAD haulage industry 
has weathered the economic re- 
cession with a remarkable de- 
gree of resilience in spite of the 
fact that Hie downturn has been 
the severest and longest the 
world has experienced since the 
1930s. Competition has been 
greatly intensified, losses have 
been incurred, fleets have been 
reduced in size or replacement 
postponed, and some companies 
have had to dose down. But the 
ravages have been no greater 
than in industry generally; and 
there certainly has been no evi- 
dence of the “ inherent in- 
stability ” which has so often 
been said to have been charac- 
teristic of the industry in pre- 
war days. 

This instability was the main 
Justification for the old system 
of carriers’ licensing which was 
abolished in 1969, and it is still 
often cited as being one of the 
main reasons for the close gov- 
ernmental regulation of road 
hanlage activities which still 
obtains in most parts of the 
Continent. Yet capacity con- 
trols have gone and the industry 
has successfully survived a 
major slump. The fact that it 
has done so is a tribute to the 
professionalism of the modern 
haulier. It also lends support to 
those who have said all along 
that the idea that the industry 
was inherently unstable was a 
mylh which owed far more to 
the effects of the inrush of de- 
mobbed soldiers operating auc- 
tioned-off ex-army trucks in the 
industry’s early days after 1918 
than to factors which were in 
some way inherent in the nature 
of the business itself. 

The industry’s strength is 
traditionally said to lie in the 
fact that it is composed of a 
very large number of very small 
businesses each operating only 
one or a few vehicles, and up to 
a point this is still largely true. 
A business operating on a 
relatively small .scale in a busi- 
ness so sensitive to changing 
circumstances and changing 
demands can be far . more, 
responsive and flexible than a 
much larger- one subject *to 
heavily centralised direction. ’ 

This is why the Stale-owned 
National Freight Corporation 
t NFC)— which is by far the 
industry's biggest single busi- 
ness. with some 21.000 trucks, 
16.000 trailers, 41,000 staff, and •: 
about, a twentieth of the total. 1 
freight market or about a tenth 
of the total professional haulage 

market — has -always made a 
point of delegating responsi- 
bilities as far as practicable 
down- the lioc. Far from being 
one big business, it is in fact a 
very Jorge holding company 
owning a vast echelon of sub- 
sidiaries and discreet operating 
units, each specialising in one 
area of the market and run as 
a profit centre with a large 
measure. of autonomy.. 

Statistic can mislead, how- 
ever. and this applies as much 
to ' the figures about road 
haulage — which. . incidentally, 
are not all that plentiful or all 
that up-to-date — as ' .anywhere 
else. In the first place, the 
basic figures about the- number 
of operators according to fleet 
side do not bring out at ail 
clearly the fact, which more 
detailed studies both- here and 
abroad have shown, ' that the 
average haulage business has 
gradually been becoming larger. 


They also need to be weighed 
against the fact that tire re are 
now many more bigger vehicles 
with much larger payload 
capacities than 10-15 years ago 
and far fewer smaller lorries (as 
distinct from vans whose num- 
bers have also increased}. It is 
the larger firm which tends to be 
predominant in longer distance 
operations or which- serves ex- 
tensive markets that his access 
to the heavier traffic flows to be 
able to take advantage of the 
larger capacity lorry with the 
resulting scale economies. This 
is the reason why. there are 
about 10 per cent, fewer lorries 
than ten years ago (again leav- 
ing vans out of account) in 
spite of a 30 per cent increase 
in the ton-miles of freight 
moved by road. It is also one 
reason why the haulage indus- 
try is somewhat less dbeoncen- 
trated than the bare statistics 
might suggest. 

The figures can mislead, too, 
because they, may give, rise to 
the impression that haulage is 
one big market whereas in fact 
it is an extremely heterogeneous 
collection of markets, each dif- 
rentiuted by area, route,' load, 
type of service required; or all 
sorts of other factors. At one 
end of the spectrum, there is 
tipping work and the movement 
of construction materials to a 
changing, kaleidoscope of build- 
ing sites round the confltry. Tins 
is still very much the*, -province 
of the smaller operator with' 
one to five vehiclc*~nol to meu- 

tion the “cowboy" firm which upon a range of specialised con- 
attracts so much attention from tractual work, 
the legislators and arouses so The NFC’s span ranges, for 
much dismay in the rest of the example, from house removals 
industry. At the other end of and the delivery of new furni- 
the .business, one can find ex- mre bought by mail order to 
tremely specialised and sophisti- tf, e shifting of heavy industrial 
cated operations such as the plant, small parcels, new cars, 
movement of refrigerated food- textiles, pottery, glass, deep- 
stuffs or - fashion goods,, the frozen foods, and industrial and 
provision ol break-bulk services, tK, use ho)d waste.’ In the pri- 
or the "undertaking on contract votely owned sector — and citing 
of complete distribution 0 f examples is an invidious 
systems, including warehousing, business for there are so very 
stock controls, and computerised m3ny _ there is SPD busi- 
control systems, as well as the ness, originally set up to provide 
haul of goods .by lorry from A to ^e companies in the Unilever 

group with a transport service 
The movement of freight has they felt they could not get 
in fact become a specialised t elsewhere, which now provides 
and sophisticated business to a a "high street distribution service 
degree which would have. been for three dozen or more non- 
unrecagnisable a generation Unilever concerns as well as a 
ago. There have been major score of companies wi thin the 
changes in the structure of Unilever group, 
manufacturing ^and lie move- Thes( , * in fte tond „ d 

™S-= of freight movement ser- 
components &nd equipment, which to-daA society 


aruetS* ^Sa^SISStS. of rathM U, “ - th * ° f 

shift in the balance of official 

replaced the corner store and J^ 1 *- ^!5 b ^ d ° ent 
specialist shop and created a * raay ^ a ' e P er *mtted 

new balance of power he ween 

greater flexibility and adapt- 
ability to be shown, but the 
adoption of the latter has also 
served to re-emphasise the im- 
portance of a ' professional 

It is no longer enough to 
acquire a lorry by hire pur- 
chase. One also has to be 
equipped to undertake, or be 
prepared to pay for, its .proper 
maintenance, to abide by the in- 
creasingly complicated rules 
governing its operation . and 
loading, to demonstrate a 
measure of financial standing, 
and to comprehend- a veritable 
maze of road traffic laws. In 
other words, road haidange is 
no longer a business which is 
easy and cheap to enter. 

Moreover, the recent White 
Paper on transport policy 
warned that the enforcement of 
the vehicle overloading and 
maintenance is to be tightened- 
up. A committee bas been set 
up under the chairmanship of 
Professor Christopher Foster to 
recommend changes in Che post 
1968 system of operators’ 
licensing which would improve 
“ the quality and efficiency of 
the road freight industry." And 
the desire to safeguard environ- 
mental amenity (an urge which 

is gradually settling back into 
a more realistic balance) is.con- 
.tinually- adding to the thicket of 
regulation and prohibition 
which surrounds to-day’s road 
freight carrier. 

The idea that the pattern of 
freight movement should, so far 
as is practicable, be determined 
by the variety and diversity of 
market demand is not yet 
wholly pervasive. Thanks to the 
Franco - Germanic origins of 
the European Community’s 
approach to transport policy we 
have bad to accept the re-crea- 
tion of a regulatory distinction 
between carriage on own. 
account and carriage for hire 
and reward in the new provi- 
sions governing access to the 
profession of road carrier. Tbe 
tight nationalist control of 
cross-frontier movements by 
road within Europe is making 
a mockery of free trade by 
requiring an exporter to choose 
tbe carrier that has a permit 
rather than the'one who offers 
the more efficient service. And 
the old dog of road haulage 
nationalisation is not yet quite 

But more and more industry 
is learning to look at the move- 
ment of freight — from the 
arrival of raw materials to the 
final point of consumption, an 
area of cost that on average 
absorbs a tenth of final sales 
value— as an intrinsic part of 
overall strategy. 

Colin Jones 

supplier' and retailer. 

There are now nationally and 
internationally branded con- 
sumer products, whose success 
depends upon convenience, 
quality, repeat purchases, high 
volume sales, low unit costs, 
attractive packaging, mass pro- 
motion and rapid replenish- 
ment of depleted slocks. New 
systems of merchandising based 
upon the computer, unitisation, 
and automated' handling have 
revolutionised inventory con- 
trol. sales administration, the 
logistics of supply, and the con- 
trol and location of depots. 
Lead times have become 
shorter, shelf life stricter, 
quality control more stringent 
and l he marketing strategies -of 
producers and distributors have 
become dnser; 

All this has created new pat- 
tens of demand for freight 
transport to which the alert 
carrier has been quick to re- 
spond. The movement of goods 
is, after ail, merely a service 
which is determined of 3 myriad 
of . free choices. The bigger 
haulier. has been moving away 
from the industry’s traditional 
dependence upon- casual busi- 
ness in order to concentrate 

Widening tasks 

for managers 

ONE HAS often heard the 
remark that the best hauliers 
and transport managers are 
those who started off driving a 
truck themselves. It is a com- 
ment that still has a great deal 
of force to it But the task of 
owners, and operators of vehicle 
fleets has been becoming in-, 
creasingly complex and sophis- 
ticated, and it has been demand- 
ing an ever wider range of 
expert knowledge and mana- 
gerial skill. 

Take, for a start, the laws 
governing the construction, 
operation and maintenance of 
vehicles. In the last 10-15 years 
these have become lengthier.and 
more complicated, and the 
penalties for infringment have 
become very much more 
onerous. Only the other day new 

proposals were circulated to 
tighten up the enforcement of 
the maintenance and overload 
rules — including, in particular, 
the distance vehicles might be 
diverted for checks to be carried 
out, the procedures governing 
prohibitions, and the rules about 
. replacements for vehicle plates. 
And a new inquiry has been set 
up under Professor Christopher 
Foster, a former director- 
general of economic planning at 
the Transport Ministry, to con- 
sider, the effectiveness of, and 
the need for any changes in, the 
present system of operators' 

Then there are the laws on 
employment In the past few 
years these have become so much 
more complex and elaborate 
that companies big enough to be 

able to afford to do so have 
found it desirable to appoint 
people to specialise on them full 
time. The web of traffic regula- 
tions, route prohibitions, loading 
and unloading bans is making 
departure and delivery schedule 
hairier to plan. The problems 
of finance and costing and con- 
trol are becoming more sophisti- 
cated. And all these matters 
are mere adjuncts to the main 
task of satisfying customers 
whose requirements are becom- 
ing progressively more demand- 
ing and specialised. 

These changes have been 
matched by a growing range of 
professional and vocational 
training facilities. There are pro- 
fessional bodies like the Char- 
tered Institute of Transport; the 
Institute of Traffic Administra- 

tion, the Ins ti rue of Road Trans- 
port Engineers, and the Insti- 
tute of the Furniture Warehous- 
ing and Removing Industry, 
whose examinations new 
entrants have been taking for 
years. There Is a steadily grow- 
ing range of management 
courses provided in-house by 
larger organisations or by out- 
side bodies such as tbe British 
Transport Staff College, the 
Road Transport Industry Train- 
ing Board, and the Freight 
Transport Association. 

The growing complexity and 
demanding nature of the trans- 
port manager's job is continu- 
ally inducing changes in the 
training facilities these various 
orgaisations offer. Only last 
year, for example, a working 
party under the chairmanship 
of Sir Peter Masefield reported 
back to the Chartered Institute 
of Transport on how it might 
broaden its membership base, 
particularly in the road trans- 
port sector, and encourage 
higher standards of profes- 
sionalism in transport generally. 

One of the biggest changes 
has come, however, not by a 
process of evolution within the 
industry’s own established edu- 
cational set-up but through 
Britain's membership of the 
European Community in the 
form of a set of regulations 
governing access to the occupa- 
tion of road haulage operator. 
To the that these new 
rules represent a step towards 
the eventual . but still extremely, 
distant — aim of opening up the 
EEC road haulage market on 
the basis of qualitative, rather 
than quantitative, controls, their 
introduction might be con- 
sidered welcome. To the extent 
that they may help bring about 
a more orderly framework of 
vocatiojal training for new en- 
trants, they could also be con- 
siderably worth while. But, 
because other EEC members’ 
regulatory systems treat com- 
mercial haulage and own- 
account operations as two 
wholly distinct areas, we too 
have had to accept the re- 
creation of a regulatory differ- 
ence. and this is very much to 
be regretted. 

The new rules are basically 
an elaboration of -the present 
system of operators’ licensing. 
From the beginning of this year 
applicants for the grant or 
renewal of an ‘ O’’ licence have 
had to choose between two 
types of licence — a restricted 
licence if he will be carrying 
his own goods here or on inter- 
national journeys, and a stan- 
dard licence if he be carrying 
other people’s goods. The stan- 
dard licence is further divided 
into two versions, one for 
wholly U.K. operations, and the 

other for international opera- 
tion. for which the criteria are 
somewhat stricter. 

The new restricted "O" 
licence for own-account opera- 
tions is granted on the same 
conditions and criteria as 
before. There has been no 
change except in name. But 
the commercial haulier has to 
demonstrate good repute, finan- 
cial standing, and professional 

Good repute will be assessed 
by tbe licensing authority in 
much the same way as for the 
former “O” licence,- including 
convictions for such matters as 
the road worthiness and loading 
of vehicles and drivers’ hours 
and records which had pre- 
viously affected the authority's 
decision whether to grant, 
revoke, suspend, or curtail a 
licence. Professional compe- 
tence- 1 — which will have to be 
demonstrated by the applicant 
or a transport manager 
employed by him to operate his 
fleet or by several transport 
managers in his employ if he 
has more than one base of 
operations — can be attained in 
one of three ways. 

One, known as grandfather 
rights, will be available to those 
who before January 1. 1975. 
held an “ O '* licence or were 
employed by a - licence holder 
to manage his fleet. They have 
until the end of next year to 
apply for a certificate of com- 
petence from the licensing 
authority on the production of 
proof of their pre-1975 experi- 
ence. Those who became a 
licence holder or transport 
manager after January 1, 1975, 
do not qualify for grandfather 
rights. They have been given 
two years’ grace to January 
1980 — during which period they 
will be regarded as pro- 
fessionally competent — but after 
then they will have to qualify 
through one of the two other 

The first of these is by exemp- 
tion as a result of holding cer- 
tain qualifications awarded by 
the industry’s professional 
bodies. The other Is by passing 
a new examination-— divided 
into two sections for national 
and international operations — 
administered by the Royal 
Society of Arts and covering 
such subjects as the laws and 
regulations governing all as- 
pects of road transport opera- 
tion, the commercial and finan- 
cial management of a business, 
and — for international opera- 
tions— the formalities and pro- 
cedures governing the manage- 
ment of international road 

Colin Jones 


Mi question f o re sight! 

Exactly. It wasn’t by 
accident that we chose to 
specialise on trucks in the 
heavier categories. First; 
we made a thorough 
survey of the market then, 
v/e made our choice. 

We are, of course, still 
carrying out market 
research, day-in, day-out 
keeping our finger on the 
pulse Keeping up with the 
unpredictable social and 
economic developments 
- and more importantly, 
keeping ahead of them. 

- y The top of the DAF Trucks 

v ‘> range is more than an 

.. \ adequate answer to current 
. demand for heavy trucks. 
>Foresight and quality 

control are what count at 
DAF Trucks. That’s what ifs 
all about 

Not just in our traditional 
European market but also 
in those countries with 
■growth potential Just look 
at our activities in Africa 
and the Middle East We 
are continually looking 
beyond the front of our 
trucks, endeavouring to 
make the widest possible 
use of our know-how and 
production potential. 

Our production 
programme includes 
trucks, tractors, tippers, 
concrete mixers, bus 
chassis, special vehicle^ 
trailers, semi-trailers. 

terminal tractors, military 
vehicles, complete engines 
and axles. All this makes us 
the most versatile 
manufacturer in Western 
Europe. Are we satisfied 
with this? No. We cannot 
afford to rest on our laurels, ■ 
we know that the success 
of tomorrow is gained by 
looking ahead today. We 
are doing just that 
A question of foresight 

For further information DAF Trades, 
Sales Promotion and Advertising 
Department, P.O. Box 1055, 
Eindhoven, Holland. 

Tel 040-1401 11. 

For the United Kingdom; 

DAF Trucks (C3.) Ltd. 

Thames Industrial Estate 
Marlow, Bucks SL7-2LW ’ 

TeL 06284-6955. 

DAF Trucks 


We negotiated 
our first fleet sale 
in 1919 

Financial Times Wednesday January. 25 1978 


59 years ago Runnings gave the 
Morris Factory their first ever fleet order- 
lISl cars for the Shcll-Mvx organisation. 

Today, the Kenning Motor Croup 
Continues to provide personal attention,, 
sustained value and efficient sen 1 ice to 
both large and small fleet operators some 
of whom have placed their trust in 
Kenning* since the earliest days of 

For a personal anil cost efficient 
answer to vour current fleet problems 
contact Mr C White at Kennings today 
and drive with the name you can trust. 



I HMi 

Manor Offices. Old Koad. Chesterfield. Derbyshire Tel: 024 t> 77241 


■■■ Tcff i® tjwm^ 

TO THE MAN in the street the 
difference between six and sev.en 
miles per gallon can be safely 
ignored and he wonld think it 
unremarkable if it were pointed 
out to him as a major con- 
sideration in buying a lorry 
tractor. Yet that one extra miie 
per gallon represents a saving 
of over 16 per cent, in fuel 
burned or, to pat it Into family 
car perspective, an increase 
from 30 miles per gallon to 
nearly 35 miles per gallon. 

And taking an average yearly 
run of only 50,000 miles by a 
heavy truck and diesel fuel at a 
fairly low SOp per gallon that 
would mean a saving of £952 a 
year. Economy means big busi- 
ness in the expensive world of 
heavy trucks and is increasingly 
becoming a major factor in a 
conservation-conscious world. 

Over the past two years the 
truck market has been as badly 
affected by reduced demand and 
sharply rising prices as have 
motor cars and now there is -a 
hope that, again like cars, prices 
may be held stable and increases 
held to, at most, two a year'in- 
stead of the previous quarterly 

There is also a hope that a 
lift in the economy in general 
will help truck sales, while any 
increase in construction work, 
particularly if helped by local 
authorities, will help a specialist 
truck market that has been In 
the doldrums. 

industry building more of the 
heavy lorries, using -bigger 
power packs, specialist trailers, 
and cutting turn round time. 

Increasingly - the larger 
operators are using computer 
programmes to ' define the 
various needs of the. separate 
sections of their fleets and to 
choose the vehicle most 
appropriate. These will take 
into account the likely mileage, 
the type of terrain to be 
covered, the average load factor, 
the cost of the vehicle, and any 
information available on 
average performance, mainten- 
ance costs, and spare parts 
availability and cost 

But all this data can count 
for little if the operator is then 
offered a very good discount by 
a competitor, or even, some- 
times, if his drivers express a 
very strong dislike for the 
vehicle which may have been 

In the past six months the 
market has begun to perk up 
again as those operators who 
had held off as long as they 
could during the hard times 
finally realised that they could 
wait no longer to replace their 
vehicles, and a& they also 
realised that it could' still take 
a very Jong time for the EEC 
to iron out its differences. 

It is still hoped that agree- 
ment can be reached by 19S0, 
but. even before the U.K. be- 
came a full partner, the original 
six- countries had been unable 

polarisation between the large 
lorries and small with the 
inevitable squeeze on the 
medium size, they have also had 
to watch a greater and greater 
degree of specialisation in body 

In the old days by far the 
majority of lorries had a fixed 
cab to a flat, or dropside back 
which could be used as a utility 
vehicle. Then the articulated 
lorry became more widely used 
and how the specialised body is 
also dominating the market 

, This is partly due to ease of 
handling for instance the in- 
creased use of containers, 
palets, rigid and curtain draped 
TIB trailers, etc. And partly 
because the regulations regard- 
ing the road transport of food 
have been tightened up. leading 
to a greater use of refrigeration. 
At the same time there are now. 
more than ever uses for tankers 
for both liquid and dry goods. 

Companies are also taking 
advantage of the opportunity to 
truck mixed loads to a much 
greater extent than they ever 
could . and are using nejv 
materials like glass fibre to 
construct the bodies in which to 
carry them. The most expensive 
tankers though are still made 
from stainless steel which can 
be steam sterilised and used for 
a wide variety of goods. 

While most original manufac- 

turers offer . some . sort of 
specialist vehicle facility most 
of this kind of body-building 
work is carried out by specialist 
companies such as Crane -Freu- 
hauf or York, -who take a basic 
chassis and add the body to it. 

It is also possible to have 
specialist lorries ' on contract 
hire including painting in house - 
colours, from major operators 
like BBS and at the same time 
to enjoy the benefits of a rescue 
service in the event of any 


• Fleet managers are increas- 
ingly being offered a service 
which means that the downtime 
oil a big lorry can be very 
expensive in itself apart from 
the need to see that pick-up and 
delivery schedules are main- 
tained and customers kept both 
happy and loyal. 

One of the innovations par- 
ticularly useful to fleet operators 
which is catching on is the use 
of the demountable body. Like 
an articulated lorry, it allows 
the driver- to leave behind the 
loaded compartment he hgs 
brought with him, to take away 
another load for another des- 
tination.' But. unlike an articu- 
lated lorry which has to leave 
behind the complete trailer* 

which . Is very expensive, the 
demountable body is much 
cheaper, having its own in-built 
legs at each corner. 

Thus a rigid truck can be 
used and allow greater utilisa- 
tion of what .is originally 
cheaper equipment Users 
Claim that it gives considerable 
savings in fuel, chassis, bodies, 
wages, damages, stores and 
depots, insurance rates, and 
running costs. 

■' While all these claims need 
to be checked, it is clear that 
the system offers similar flexi- 
bility to an artic as long as 
the size and weight of the 
demountable body can compare 
With the largest of the articu- 
lated load carriers, and as long 
as it suits the operator to have 
a group of more or less static 
containers to load. 

The key question, then, is 
always economy- Most develop- 
ments have to have that factor 
as pan of the original concep- 
tion, except in the most 
specialist of vehicles. 

- Fleet operators have had to 
cope with very rapidly rising 
costs In the past few years and 
have reacted, generally, with 
the formula that bigger . is 
better and have thus tried to 
run 1 as few lorries as possible 
at maximum efficiency. 

This has led to some turmoil 

in the manufacturing industry 
as the continental operators 
have been able to cash in on 
their experience of building big, 
long - distance trucks that 
appealed to both the operator 
and his driver. 

Now the British industry ts 
back, though the- cur- 
rent climate nf heavy discount- 
ing leaves little optimism for 
positive cash flows. They are 
' also able to stress reliability to 
go with improved cab . design, 
and have shown greater willing- 
ness to mix proven parts made 
by outside manufacturers with 
their own engineering ' and 
assembly skills. 

' All this is good far the fleet 
managers, who are being 
offered more choice at com- 
petitive prices. 

But. despite all the knowledge 
that can be computerised, word 
of mouth in what is still a very 
tight-knit industry is still very 
important. An* buyer loyalty 
to one manufacturer takes a long 
time to break down. So the 
British manufacturers are look- 
ing to a period of growth in the 
next IS months and the fleet 
managers can hope for increased 
reliability and economy from 
their vehicles coupled with more 
stable financial forecasting. 

Stuart Alexander 



/UfO CONmsCT it! 

Fron Inver nil's in Si. I tits. Iiom Minr- 10 
Rolls. Auio Conlidcis oil • » piok sr.ionol 
!%diiii:e and e.»(wihse in rcduonti \our 
vehicle Heel costs Advice on Ian in.nn-is 
and cash flow comparisons jl«j readily 
available. Fill in llic coupon jiio nurl lor 
lull lacw. 

Head Office: 

193 194 Broad S-hw Biir.imaham 815 I AY 
Telephone: 021 -SJJ 0b35 Telev. 339 1 88 
London Office: 

23 31 Lanc.isli-r Road Fnlu-ld. Middlcr-*-* 
Telephony 01 363 5333 Tele. 23210 

m Mm m 

we're everywhere! L, 

r — — — — — 1 

At the same time, transport 
managers have had to keep a 
careful eye un the manoeuvrings 
at Brussels as the Common Mar- 
.ket nations tried to agree on 
maximum weight sizes, on the 
other hand, and to issue direc- 
tives on such things as drivers’ 
hours, or adequate refrigeratiou 
of foodstuffs, on the other. 

And while . some companies 
have seen their cash flow re- 
duced due to the downturn hi 
the economy, the leasing busi- 
ness has grown in order to free 
capital for other things. While’ 
for the manufacturers the com- 
petition for business has in- 
creased and this has led to some 
heavy discounting. 

Even with wage restraint 
drivers pay has continued to go 
up so operators have looked to 
using bigger lorries and less of 
them in order to cut both 
capital outlay and running 
costs and this has led to the 

to agree oh a formula. 

The main problem is one of 
axle-weights which can. lead to 
gross weights fluctuating be- 
tween 32 tonnes and 50 tonnes, 
depending on the view of in- 
dividual countries. Allied to 
this is the question of how many 
* horsepower should be the norm 
minimum per tonne weight it 
is pulling. 

Add a couple of axles or put 
in bigger engines and conse- 
quent power trains,' and the 
cost of a lorry can rise alarm- 
ingly. AH of which means that 
the fleet manager has to keep 
a careful eye on hisiuture buy- 
ing pattern if he is to remain 
competitive or if he is not to 
be left with a second-hand fleet 
that is difficult to sell because 
it is less efficient . •' 

For the company which runs 
its own fleet, there is the con- 
tinuing problem of mixing 
heavy trunk haulers, with local 
delivery and inner dty vehicles. 

While on the one' hand every- 
one- has been watching greater 

Computers play 
their part 

THE TRANSPORT industry has 
been slower than some other 
sectors to seize on the potential 
advantages offered by com- 
puterising its operations. This 
is because of its highly frag- 
mented nature and the - very 
large number of small opera- 
tors. But in the past five years 
considerable advances have 
been made in some of the larger- 
concerns.' Many large own- 
account companies have utilised 
computer systems, often using 
the . computer Installed.' to 
.handle their main, business 

However, the rapidly declin- 
ing- price of hardware means 
that computer sytems are com- 
ing within the reach of even 
smaller operators. While com- 
puters for big operators can cost 
£30.000 and upwards in rental 
each .month, a comprehensive 
system for the small operator, 
could cost as little, as £1,500 

Hardware will become even 
cheaper in the next decade as 
the technology develops, in an 
address to the Freight Trans- 
port Association, Mr. Bob 
Beckham, managing director of 
SPD, Unilever's transport sub 
sidiary„said:'*‘ A mini-computer 
to-day would probably cost 
£10,000: in the eighties it will 
cost nearer £1,500. A micro- 
computer is available to-day for 
£1,000: the eighties will" see 
them on the market for 
back all this up the new midi 
range of computers will assume 
a more important role as the 
central machine in a small net 
work, taking over a similar role 
to the large mainframe com 
puter. Midis to-day are around 
£50.000 but will certainly be 
down to £10,000 by the early or 

Cost will not be the only 
reason that use of computers 

and data processing will expand 
further. Mr. Beckham points out 
that a 'transport manager who 
has a future will be told by his 
common sense “that his 
physical and mental capacity to 
use all his knowledge at one 
time, in a continuing process, of 
evaluation-adding new experi- 
ence and updated information 
to his original memory store of 
knowledge" as the day-to-day 
operation proceeds <— becomes 
progressively less efficient as 
the information that- heeds to 
be taken. into account 

Nor are companies the only 
units .to investigate the possi- 
bility of taking computer 
systems on board. The Freight 
Transport Association is 
currently investigating whether 
to provide, on a national basis, 
a computer bank for the 

analysis of goods vehicle operat- 
ing and maintenance costs. If 
the Board give the scheme the 
go-ahead it could start operating 
by July. 

' The bank's purpose would be 
to provide association members 
with rapid information on costs 
as an aid to. better management 
control. Beggar output infor- 
mation would, cover such items 
as cost .per vehicle for .both 
operating and maintenance, 
details of those vehicles costing 
above average to run and con- 
trol on annual testing and the 
Issue of prohibition notices. 
Special analysis output would 
include information on optimum 
vehicle life, the benefits of par- 
ticular makes and types of 
vehicle and comparative operat- 
ing and maintenance costs. 

The gain in efficiency from 

switching to computerised 
operations can be very impres- 
sive. British Boad Services, part 
of the National Freight Corpora- 
tion. which offers its planning 
programme Pathfinder to out- 
side groups— usually big own- 
account concerns— says that 
efficiency is Improved by 
between 15 and 50 per cent, on 
existing operations. 

IBM, which offers a range of 
programmes for transport 
operations, points to a similar 
level of improvement When 
their Vehicle Scheduling Pro- 
gramme. called VSPX, was 
applied to CJeest .Transportation 
it was found that an average 
saving of 30 per cent, could be 
made at each of the group's 12 
depots. Vehicle levels at each 
depot could be reduced typically 
from 23 to 18 for a saving of 


Sign of the times. 


Times are changing. And this year there'll j \’0 m \ 
be more leased cars on the road than puzd 

ever before. The phenomenal growth of I 0 . 

the leasing market is no more than a j j 

direct response to the equally phenomenal ! j 
demand from the company sector. j- I|U 

A demand provoked by the increasing | IBB 

need for executive mobility and a growin g j 
appreciation in the company sector of 
the advantages that leasing can bring. 

Changing times demand flexibility. And that's the 
key to British Leyiand Finance. We believe in 
- co vering all the options, 

==:=:a i making the Fleet User aware 
of the precise implications 
of his company car policy 
|^ Eg» er : ■ with reference to employee 

'*5™ rnnjj satisfaction, cash f!o w, 

maintenance facilities, and 

other administrative functions. Because these vary 

from company to company, ouf suggestions vary 
too. And these form a flexible basis for teaming 
C=^ a - 3 } up with the client to establish a future 

A sfr- vehide P° ,ic Y- 
& j BP hj] Then, and only then, 
rji T|£hB will BLF combine 
ni /y with the relevant 
- * ~zz dealer network to 
provide the Fleet User with the 
whole range of vehicle and 
financial services to meet his 
needsiAndhis profit margins. 

After all. you're in the business of driving bargains. 
And we're in the business of supplying them. 


The answer is probably yesand you don't 
even real ise it. Can you pmpoihtany 
vehicle which Is not performing within 
acceptable limits? Can you identify their 
individual operating costs? Can you 
monitor performance closely? Can 
you check a vehicled maintenance 
costs over the last month at-a- 
glance. Can you compare' its 
running costs ona pence-per-mile 
bas is with your fleet averages? 

If you answer no to these 
questions you need Fleetplah 
FJeetplan is the complete . 
management accounting and main- 
tenance analysis service for 
fleets of all sizes,- whether 
they're cars or heavy 
commercials. It's a flex- 
ible system, tailored to 
your individual needs. 

That means you 
don't pay for infor- 
mation you don't 
; need. ■ 

YouTI no longer waste time 
finding the problems. Reetplan 
i show them at-a-jrtance— 

R You time to solve them. 

* leeipian isa great step fcrward/felkto 
Ui anoutyour fleet operation.Fdf*- 
cost of between f7and £ 15 per. 

; vehicle per annum were surewe' . 

can helpyqul: 

Fietcner Computer Services Limited: 
- 115 Coventry Road.'ShcWo^.-: 
.rvjgg*. Birmingham B2fr3Efc- 
Tel: 021-7432^1 

k { 


UwCcr-ip* tyCa fVuo;-: Ccrr&rrf 

British Leyiand fmc-nce Limit© 

tot Ftectpkm feed 

analysis service, 
to fleet opemori%^' 

AS . . 

V Financial Times Wednesday January 25 1978 




S •• v .• 
v •' - 

* V i 


the service costs 

in the best sbape 
sibJe in order to achieve 
Stable second-hand 
in they are sold. 

3 ANALYSIS of vehicle bodywork which sets rust to 
ntenancc costs is one or the work. Equally, component 
L important elements in run- design is improving in quality, 
3 an efficient fleet. It is also Service intervals are gradually 
-dd which is attracting more being extended so that vehicles 
more attention from opera- can be. kept on the road for 
and independent specialists longer continuous periods. In 
er the pressure of spiralling addition, a number of manufar- 
ige bills. Efforts are now turers have produced radically 
ig made in. a variety of improved warranty schemes, 
actions to ensure that fleets which take away the customers' 
maintained as cheaply as repair costs for one or. In some 
sible. while keeping the caSeSt two years, 
ides m the best shape * , , 

These manufacturing develop- 

deals ments are being supplemented 
by a new range of services 
heie' developments can be designed to create more durable 
uped under three main bead- vehicles once they are- on the 
i— the improvements in the road - A variety <* rustproofing 
duct which are being made and P aim respraying companies 
manufacturers, and which have established themselves, 
be supplemented in the gar- with stainless steel ex- 

wheo the vehicle is bought: haust manufacturers who claim 
improvements in running produce units which can last 
-S made by using new com-' ^ or a caT ‘ 

enis and cutting the price of . ‘ - 

re parts; and the specialised KHnillflP' 
la semen t services for uuumu b 

icle fleets which can be- Although these services are 
«ht virtually off the «shelf. not widely used in the fleet 
Toduct improvements have business, a number of companies 
luesttonably been made by are beginning to consider them, 
lui'aeturers in the past few Rusiprnofing, which can cost iip 
rs in respo;ise to the tougher to £100 a car, will probably hot 
cfcet conditions following the attract fleets with a high turn- 
ensis. Deflated sales have over of vehicles which are being 
int concentrating hard on resold well before, any rust will 
rketing tactics, and have also appear. Similarly with stainless 
the manufacturers up- steel exhausts, which are again 
de what they have rather more expensive than their mild 
n expending all their efforts steel counterparts. But fleet 
developing new capacity as operators who need to run' their 
ipeneri mi the 1960s. vehicles -for longer periods are 

i-' a result, rustproofing and beginning to look at these possi- 
ntwork have improved, along bilitics. Prolectol (Rustproof- 
h the design of the newer ing) of Durham, for example, 
* which deliberately tries to claims that tests with the Post 
dualo water traps in the Office in the Worth East region 

have shown a significant im- 
provement in vehicle life. 

Vehicle fleet managers are 
also looking- very hard at run- 
ning costs under the impact of 
rising fuel prices. This trend 
has made an impression in two 
main directions. First, it has 
forced much more bard-headed 
calculations hf the repair costs 
in running any individual fleet 
Initial price is becoming a rela- 
tively less important factor 
to-day compared with the cost 
of replacement parts' and down- 
time while vehicles are off the 
road. In the commercial vehicle 
industry this calculation is par- 
ticularly important because the 
overall cost of running the fleet 
has to be set very . clearly 
against its ability to earn 
im.ii me. 

Competitive spare parts prices 
is one of the reasons why the 
U.K. car • manufacturers still 
have an overwhelming grip on 
the fleet .market British cars 
to-day have been shown to be 
as reliable overall as- their com- 
petitors', and in many cases can 
be maintained for half the cost 
BA the importers can be 
expected to make an attack on 
this front. 

A new factor which is begin- 

ning ti> play a part in fleet costs 
is alternative fuel systems. The 
diesel engine, for example, has 
received a big boost in the light 
commercial field because of its 
greater fuel efficiency, and is 
gradually making inroads into 
the car sector as well. As yet. 
diesel cars are not used in any- 
thing like the numbers on the 
Continent, partly because 
British manufacturers do not as 
yet produce a diesel car; but 
Leyland is planning to intro- 
duce a diesel Princess later this 
year, and Ford a diesel Granada. 

Gas-driven cars, popular for 
many years in north Italy, are 
also poised to make an impres- 
sion in the U.K. Unlike diesel, 
gas is no more efficient per 
volume burned than petrol. But 
there is a significant price differ- 
ential in the fuel compared with 
petrol because Britain produces 
a surplus uf propane at present 
— direct fuel costs are claimed 
to come out -35 to 40 per cent, 
lower. The problem with the 
system lies in the additional cost 
in fitting gas equipment, which 
can be well over £200 a vehicle. 
On the other hand, this equip- 
ment can be removed when the 
vehicle is resold (the car then 
runs on petrol because all the 
gas equipment is bolt-on) and 

added to the next vehicle which 
is bought for the deet. Cargos, 
one of the main companies in 
this field, which operates from 
Leeds, claims to have converted 
500 Transit vans to gas in the 
last IS months, including some 
oF the Littlewoods and Rank 

The Increased emphasis on 
efficient maintenance has 
brought a number of specialist 
companies into the field in 
recent years. One sector of 
activity derives from the leasing 
industry, which has tagged main- 
tenance contracts onto its main- 
line business. This means that 
many leasing contracts are now 
written with a maintenance 
clause as well, with the leasing 
company taking responsibility 
for keeping the vehicles on the 

This is an obvious area of 
business for garage companies 
like Bristol Street Motors or 
Wadham Stringer which have 
diversified into leasing. But a 
number of companies, mainly 
with an ' American lineage, 
are now establishing them- 
selves as mainly fleet manage- 
ment operators. These busi- 
nesses, such as PHH and Gelco, 
nffejr customers a complete ser- 
vice. They buy the vehicles in 

the first place, arrange main- 
tenance and check the bills, and 
dispose o£ them at the end of 
the term. The advantage uf 
using these services lies in the 
fact that many medium-size 
fleet users are not equipped to 
employ really specialised man- 
agement in this area, where 
maintenance costs can get out 
of control without adequate 

mileage fee. 
agement side, 
a scheme to £ 
ing with a 
safety check 
guide to the 
an individual 

On the fleet man- 
Ihe company runs 
live regular servic- 
performance and 
which includes a 
costs incurred hy 


A number of specialist groups 
are also entering the vehide 
recovery and maintenance busi- 
ness. These are particularly 
relevant to the haulage industry, 
where operators are trying to 
reduce the time trucks spend 
off the road to a minimum. Here 
again, the specialists are build- 
ing up diversified businesses 
which cover both 24-hour 
recovery services, general repair 
and full maintenance contracts. 

For example. Truck Rescue 
and Maintenance, an eight-year- 
old North London business, 
offers contract maintenance 
agreements which cover preven- 
tive servicing, replacement of 
major parts and recovery 
charges, ill based on an annual 

Specialised servicing com- 
panies of this kind nuw use a 
variety of electronic and other 
diagnostic machines as an aid 
to speedier maintenance. Auto- 
sense Equipment, of Bicester, 
for instance, markets a machine 
which works through sensors 
connected to key points on the 
engine and the exhaust. The 
results of this are fed into a 
computer which delivers a print- 
out showing what is wrong with 
the engine’s performance. 

• Capital investment in this surt 
of machinery is beginning to 
take off in Britain with the 

development of the trend to- 
wards larger workshops, and 
away from the old general ser- 
vicing garage concept. Mr. 
George Haynes, marketing direc- 
tor of TI Transport Equipment, 
which makes a variety of 
engine testing and wheel align- 
ment products, believes that the 
increased stringency of MOT 
testing will create a significant 
increase in the amount of 

garage equipment u*cfl in 

These developments all shi.w 
a growing emphasis on efi’-vtivc 
maintenance and lower running 
costs which is likely to inien-'.!>- 
in the years ahead. Opera! mv 
will need to improve the 
efficiency of their Hoets as fuei 
costs rise: and they will in- 
under constant pressure fri»:i: 
the Government in maintain 
vehicles -which arc adequately 
safe and non-polluting. 

Pressure will therefore he 
exerted on the vehicle manu- 
facturers themselves to mal e 
cars and trucks which i;;a 
longer than they do at ihy 
moment, and which reqmr- 
much less maintenance. Receni 
moves towards longer servicing 
intervals are an indication of 
the efforts manufacturers are 
making in this direction, and 
they L -an be expected to con- 
tinue as new compnnem.s ;i?n I 
materials are developed. Bin all 
these changes are likely to make 
vehicles very expcnnvc 
products, which m turn will 
make their users all lh<- keener 
to ensure that they are kept in 
the right condition. 

Terrv Dodswcrfh 



out 125, 0W» each year— a tutal BRS has also produced, a 
£320.01)1] annually. model to help managers in its 

In Europe IBM has supplied general haulage business — 
•nr or live transport concerns which accounts for about 50 per 
nil data communication liel- cent, of the group's turnover— 
urkv based on the IBM 370-133 to work on realistic costings, 
id upwards which provided on- General haulage has become 
h* o mini 1 of operations. One increasingly less profitable in 
ample is Dubois in Paris, the past few years because of 
lick has 60 terminals on line the fierce competition from 
depots throughout the smaller operators. The model 

allows staff in the -branches and 
In Britain both Norfolk Line, regions to decide what a 
jnilevvr subsidiary, and MAT realistic quote for a job would 
m*purl use the IBM System be— even though the state of 
ree in corpora ling operational the market may not always 
nrol and a fleet data base rc- permit such a quote to be made, 
ling To a limited e\- - * .... 

t even dny-tu-dav operations This programme, which began 
run through the machine. 1$ months ago. use* the historic 
tasks include equipment eon- tf0St ?' operation on a rolling 
.. y- and tracing, dav-twlav stx-mosnli average to split down 

.*?"•: '^fpiiKS and rating and rate thp «*« running a vehicle to 

The hour and mile, bo even if 

British Road Services is also a vclndi: is ope rated below the 
• ■- ' iputerisiog its operation break-even pom:, at least the 
. tidily. The Stale-owned sub- fart to known. Usually it is not 
ary of the National Freight until lh<? l ‘ nd of the > ear m the 
^^porati on uses the computer transport industry that a 
r^eau Scicnn for morn* of its manager can lell whether lu* 
f railing operations, although has been running at a profit or 
^ „Ui-day operations have noT l oss - 

been brought within its BRS has also computerised its 
:pc. BRS is the biggest single budgeting, and all branches 
|^.;ip m transport, with be- have now made the switch-over. 
f D.0 ik> and 10.000 vehicles In the past the complexity of 

10,000 employees, the budget was such that when 
u ?£} computer used by Suivon ;s new factors developed, like 
Urn vac I10S. price rises, the up-dating was 

# m so time-consuming that it was 

''ktrihllHrin not done and the budget conse- 

I9IIIUUUUIJ quonUy was ignored. By com- 

v first programme do- puierisafion new data can be 
• ' ’ u pi'd was Pa tli finder, which added whenever required and 
cd about tour year*, ago. an up-daied budget produced. 
«a- originally intended for Twt> ol ] Wr BRS programmes 
ract lure operations — . are a trunking model and a 
)ly hy. own-account concerns, vehicle database. The trunking 
is general b been- uscit to set ni0| | e | an:[ |v«.es vehicle flows 
^tew suryicvK ami the mam involving multiple supply and 
it hr Ipx to answer are. demand points. The database 
dls * r, , m,so ” contains most British tno-axle 

*2 $ v, : h, :' Us ■ hn ! d(1 be rr r - niads m Uk* 3.5 to 16 GVW 

%*. r? voi,u 'J‘ fi ' range with details of their 

and how many miles specification, price and suita- 
riiej-uv for diirm . nl types of 

, . , . - , .... group is extending 

iroup ana is thought to he to include units and 

only external consultancy t,raiJ»’r^. ■ 

luter service offered by a tt* ... p . * 

spurt company. David Freud 

Vlth a Wincanton contract our customers know thoir total 
ttiido maintonanco costs in advance — tharo are no 
ridden extras. 

: frid out how we do il — call Les Chessman on Wincanton 
12021 or 01 -992 3400, or write to him at; — Wincanton 
frsnsport. Station Road, Wincanton, Somerset. 

C. - « 


p»rt ot the Unigxle Group ' . 





Ring Daventry (03272) 2276 

fi y ' 


“*>'4 'or '■Z&'v 

, _,ifr ’ 

v.ii*.,*- /.t< r'. j - v- 

HA. Practical shape iSScc. ft. cargo volume). Firm favourite with 
big fleels. Lov; initial cost. Two models.. 

New Chevanne. 1256 cc Chevelte engine. 2 star petrol. Stylish 
and comfortable. Drives like a car. Nearly half a ton payload. 

CF. Whole catalogue or recer.r ^nprovemems. New option of 
well-proven 206-icc G«V« o'iere r . New H'gh-spedficaHon cab. 

Bus & Coach. P5V range including YLQ and YMT chassis with mid-engine design 
and Bedford 500 diesel. Excellent i ide and handling. Low initial cost. 



isr-iftSs ST.- 1 ". 



TICTop selling range. F our v. e'i. 
19 ton gross. Kercwnes to- r.igr, zz/. 

z- ■ v.reeie-'s end traders. From 5.6 ton la 
cci cjcccines. 

From iighf vans to top weight premium trucks, 
the Bedford range has something for everyone 
involved with transport - in service industries, 
wholesaling, retailing, distribution end haulage. 

This wide choice, plus our traditional 
reputation for providing reliable and economical 

TM Muscle Trucks. Premium spedficarions. From 17 tonne four wheelers to 
42 tonne double drive six wheel tractors. 

transport made Bedford the top selling truck in 
Britain in 1976. 

Have a word with your transport manager 
about the complete range. 

He probably hasn’t had a 
chance to read this paper yet. 

Financial Times Wednesday January 25 197S 





Vft«V c ... wM 

t^y company asked to pay more, 
must m in tins coupon now!' 

(*Up to 20.000 miles a year and including Road Fund 
licence, supply of relief vehicle and AA membership.) 

With one of the biggest contract hire 
fleets in the country we can offer the lowest 
prices for long-term leases of company cars 
and we have more flexibility to arrange 
contracts which match individual needs. 

Look at these examples of our prices, 
then tell us what your needs are. 

Princess 1800 £17-46 

Marina 1.3 4-door DL. £13.49 

Chrysler Alpine GL £16-00 

Vsuxhall Cavalier 1.6L 4-door. — £16-59 
For full details telephone Miss Mary Joyce 
on 01-937 7207 or post the coupon. 

A!I rales are baaed an manufacturers' prices as at 17Ui January 1978, 
and a 3 year loose period. 

Post to Dial Contracts Ltd., 7 t 17 Ansdall Street, 
Kensington Square, London W8 5BN. 

Please tell me more about Dial Contracts 
j company car services:- 

I Name 

! Position 

{ Company — 

I Address 



IN THINKING about the prob- 
lems of freight operations in 
large conurbations, it is signifi- 
cantly easy to pick out three 
“typical attitudes" from the 
triumvirate of those concerned: 
the lockl authority, the public 
and the freight operator. 

The road fleet operator we 
can easily imagine venting his 
belief that congestion is getting 
worse and that the council is 
doing nothing but creating more 
restrictions on lorry move- 
ments: The public says simply 
that living within earshot of 
juggernauts or weaving between 
them to the shops is intolerable 
The local authority commits 
itself to making the streets 
safer and quieter and, when the 
cash is available, plans more 

Of nowhere is it more true 
than the cities, that the people 
who live and work there do not 
know whal they want in trans-. 
port terms. The grand planner's 
solution of ringways and stilted 
urban motorways, although 
monumentally evident in some 
cities such as Birmingham and 
Newcastle, is if not now dis- 
credited for social reasons cer- 
tainly ruled out by economic 
constraints. In most .of oiir 
cities this has left an incomplete 
highways network, often en- 
vironmentally unpopular in 
itself, which has failed to pro- 
vide anything like a complete 
answer to the disturbance of 
the heavy lorry. At the same 
time, whether the public likes 
it or not. the high consumption 
society intensively represented 
in cities is precisely what turns 
the wheels of road freight faster 
aud further. 

This raises a challenge for. 
the . planners which goes Tar be- 
yond mere highway planning, 
hut it is a challenge which has 

only recently and even then 
spasmodically been met in this 
country. Because of its size and 
complexity, London offers the 
best description ' of the 
difficulties and, through the 
workings of its . freight unit, 
hints at . pulley options which 
authorities with small er re- 
sources may do well to consider. 

The freight unit, set up under 
almost experimental conditions 
four years ago, says its concern 
Is with the more than flhn. a 
year which London "spends on 
freight movement and with the 
freight industry itself, which it 
estimates accounts for 10 to 15 
per cent of the total income 
of . the capital, and employs 
ahqut 300,000 people. 


These figures, apart from 
providing an • impressive 
statistical justification for 
spending a little money investi- 
gating freight problems, have 
also taken the unit to its first 
principle: that freight transport 
■is not to be treated solely as 
a nuisance whose visual and 
audible ■ presence should be 
minimised through- council 
policy but as an important in- 
dustry. in its own right. In the 
words of Ur. ■ Martin Foulkes, 
head of the GLC freight unit, 
“ our. aim is to work, with in- 
dustry to improve' every aspect 
of freight movement and to 
present bur freight develop- 
ment as a marketing plus in 
seeking to reverse the economic 
decline of London. We also have 
to respond to the very real pub- 
lic concerns about the environ- 
mental impact of freight movfe- 
meot, but oar. experience is that 
a solution -for .the freight 
operator often satisfies the 
environmental case as well." 

• One of the freight unit's first 

acts was to encourage the 
establishment of the London 
Freight Conference, . a. non- 
decision taking, forum where 
representatives of general 
industry, transport, police and 
amenity organisations are able 
to' discuss freight policy in the 
presence of GLC officials and 
councillors of all parties. 

Four years later, the results 
have not been- dramatic and 
indeed the most publicised 
freight policy incident of the 
period apparently runs counter 
to Mr. Foulkes’s first principle 
of working alongside rather 
than against industry. This 
was the proposal for a -ban on 
night-time movements of heavy 
lorries - on through journeys 
across London — a - proposal 
which was ignominiousiy with- 
drawn having raised the wrath 
of everyone from the police to 
the boroughs through whose 
territory the vehicles would 
have been diverted;, 

** At least we don’t have any- 
one even talking about major 
lorry bans, now," says Mr. 
Foulkes, although he does not 
rule out the possibility of- a ban 
on through movements when 
London's M25 outer orbital 
motorway is completed in the 
mid 1980s. But even here, he 
prefers to hope that the quality 
of the new.rdutg will make 
regulations unnecessary. There 
is also a ban on through lorries 
over 40 feet In length in a 
central -six square-mile zone and 
a hoist of local lorfy jouteing 
schemes throughout London. 

The end of the first chapter 
in ' the freight unit's life came 
last year when- it published its 
freight policy— & document 
unique in local authority terms 
and unusual in ^ comprehen- 
siveness of its approach even 

Running your own transport probably means 
having a maintenance set-up of your own. And 
today that’s a diversification you could do without 

Vehicle maintenance and repair is just one of 
the options available as part of a contract hire ' 
agreement from Superbriz. Vehicles, drivers, 
garaging, fuel, spare or extra vehicle provision are 
some of the others. 

And contract hire is but part of the BRS range 
of road transDort services. 

We have both the close appreciation of local 
needs and the nation-wide resources (over 150 v 
branches') to ensure the right help with any . 
transport problem. 

It can be anything from a oneway, oner truck 
rental ... to a total distribution service. ' • 

For we see ourselves as,transport problem 
solvers, finding solutions that fit individual 
problems - unlike those who do it the other way 

Sritish Road Services Limited 

P ~ ~ wiiifc . ~1 -Just say ‘Superbriz' 

by central .Government stan- 
dards. " " . 

It lays out .a 'policy designed 
to offer planning support for 
depot and access developments 
for freight movements by -road, ; 
rail and water, aiming within 
geographical constraints to 
channel freight flows Where 
they are most efficient for 
industry and ^retailers and least 
annoying for . residents. It 
accepts throughout that policies 
requiring extensive ■ enforce- 
ment or complex administration, 
are not feasible. 

The freight policy is; a con-, 
fldent. document and no doubt 
bolstered in this by its belief 
that the size of its problem in 
terms of vehicle numbers is not 
likely to . change much id _the 
next decade; thus allowing it a 
reasonably stable planning 

It -looks to the long term on 
energy and environment ques- 
tions by suggesting the recently, 
implemented pilot study of 
battery-driven,- short-delivery 
vehicles and by committing 
itself to pressuring Govern- 
ment and the EEC into much 
tougher noise .and emission 
standards for lorries. If it can' 
get quieter and less smoky, 
lorries (dangerous ozone con- 
centrations far exceeded GLC 
air quality guidelines on -a 
number of occasions during the 
hot summer of 1976) the council 
is even In favour of raising the 
maximum permitted weight for 
lorries to 38 or 40 gross tonnes, 
in line with the view of some 
other EEC states. 

Two main methods of control- 
ling lorries are envisaged: one 
is the development of the 
capital’s roads along the Hues 
of the 400-kilometre. 15-year 
plan recently published; the 
second lies in an adventurous 
; programme to create a network 
of major freight interchange 
complexes, supported . by a 
number of depots where small 
road haulage companies . can 

Share' parking, maintenance and 
storage space. 

-The highway strategy em- 
phatically rejects the , urban 
motorway solution, of the kind 
rwhieh London embraced for a 
■period in its 40-year *' primary 
routes/’ plan. The new plan 
; concentrates on creating radial 
connections to the outer orbital 
and' the national mojorway net- 
work and pays special, attention 
to the road transport needs of 
■ the East London docklands, 
whose industrial and commer- 
cial future is - the subject of a 
Tong-standing, but so far not 
very successful, revitalisation 
plan by the GLC. 


According to Mr. Foulkes, 
publication of this strategy 
with a definite timetable for 
construction was a vital com- 
ponent in creating confidence 
in the council's freight policy, 
much of which is still mainly on 

But 1978 should also see a 
major step forward in the pro- 
gramme of freight, complexes, 
with an impending decision on 
which consortium will be 
allowed to develop the 40 acre 
British Rail site on the North 
Circular Road at Neasden as a 
freight complex and hyper- 

The freight complex, 
modelled to some extent on the 
much bigger Parisian facilities 
of Sogaris and Garanor, but also 
able to draw to some extent on 
experience from a less sophisti- 
cated centre in Wakefield. 
Yorkshire,, will be designed to 
provide storage, rail link, load 
clearing bouse, pallet pool, fuel- 
ling. cafe, hostel, servicing, 
customs facilities and pos- 
sibly even some specialised 
installations such as cold 
storage. Like the small haulier 
depots, it will be financed by 
private capital, with the GLC 
simply providing planning sup- 

port and improving access 
where ■ necessary. After 
Neasden, a second site in East 
London will probably be 

The significance of even these 
large projects has: of course, to 
be set in the context of exist- 
ing facilities: London has 10.UUU 
acres of depots and warehouses 
already. But the GLC theory is 
that by working alongside the 
freight Industries at the earliest 
stages of planning and site 
investigation it can influence 
development in line with its 
own strategic overview. 

A similar approach has been 
in evidence in the selection of 
about 20 development depots 
in conjunction with British Kail 
and in the planning oE future 
wharf capacity and making 
arrangements for vessel 
replacement amonq the lighter- 
age operators on the Thames. 

Mr. Foulkes is also keen to 
stress that alongside the policy 
formulation, the leu-man 
freight unit has been busy with 
freight casework. After a con- 
ference with industrialists last 
summer, for example, he invited 
his audience to submit specific 
problems associated with their 
own businesses.. The freight 
Unit is now about a quarter of 
thew'ay through the 5(1 or so 
complaints ahout such mailers 
as access and parking raised by 
the respondents. 

Again, hardly dramatic, but 
it is ail part of' a process which 
wilt. Mr. Fun Ikes argues, 
eventually give London a 
freighting system hetlor than 
that in any other capital in the 
world. This should mean more 
efficient distribution chains for 
industry and consequential 
benefits in prices paid, by the 
London consumer who, 
although lie may .seldom reflect 
upon it, spends on average flM 
a year on freight iransporl— 
more than he spends on public 
transport in the capital. 




CAR FLEET management is be- 
coming a recognised aspect of 
most large companies' activities. 
As the number of vehicles given 
to executives Increases, and the 
amount of money' tied up in the 
fleet goes up as well, it is clearly 
necessary to manage the cars as 
efficiently as possible. This 
means devising the cheapest 
means of buying the vehicles 
and the most profitable methods 
of selling them, as well as 
making choices about the type 
of vehicle based on its price, 
engine size, and the likely 
amount of maintenance it will 

One of the reasons . why 
British car manufacturers stiU 
have a strong grip on the com- 
pany car zn.vrket lies in their 
ability to direct their services 
to these kind of requirements. 
Conversely, their concentration 
on fleet demands has probably 
not helped their image with the 
general public: it has led- in the 
long run, .to a dull kind of 
utility vehicle with less visual 
appeal than many of its overseas 
competitors. Yet these utility 
vehicles are what, in the first 
place, the company buyer needs. 


Another factor which helps 
the' domestic manufacturers 
against their overseas competi- 
tors is the method of bulk pur- 
chase used by many fleet 
customers. Vehicles can be 
ordered in very large quantities 
off. the production line, so that 
they are fed into the factory 
schedules and despatched virtu- 
ally direct from the manufac- 
turer to the end user. By con- 
trast, the importers find it diffi- 
cult to carry the range of stock 
necessary to meet these kinds of 
demands, and have too long a 
pipeline to meet orders in this 

Indeed, many importers do 
not carry anything like the full 
range of vehicles produced by 
their manufacturer because of 
the costs of stocking a great 
variety. - This puts them at a 
great disadvantage with the 
larger scale customers who need , 
a broad range of specifications' 
to reflect the wide variety of: 
uses to which the vehicles will; 
be put ! 

The strength of the importers! 
so far has been in supplying! 
smaller companies with much! 
more limited fleets. Customers 
needing just single vehicles or 
small numbers of up to fifteen 
or so, are much more likely to 
look towards an importer who 
can easily fuifll these require- 
ments. Some importing organi- 
sations— Renault is a case „ 
point— have recently established 
fleet departments specialty 
serve these needs. 

For larger scale deals, how- 
ever, the British manufacturer, 
^ n 

prices because of the ability to value possible, and hi dispose of 
supply in bulk. Discounting on vehicles, quickly and efficiently 
the normal retail price is an has been the growth of a 
. accepted norm in the fleet specialist services for used cars, 
business, with both dealers and On the one hand, many of the 
the manufacturer trimming larger dealership chains, which 
their margins in order to shift used simply to pass on cars to 
the larger quantities of stock, auctions, have imw established 
which can- be anything between their own second hand depart- 
25 and 200 cans in the larger meats which work on the 
fleets. The normal dealer disr vehicles and sell them as pail, 
count offered by the manufac- of their retail activity, with full 
turer to the distributor is often professional backing. Another 
trimmed back from between T8 lias been the growth of the large 
and 22 per cent, to 10 or 12 per auction companies themselves, 
cent with the manufacturer ac- such as British Car Auctions 
cepting a similar reduction, and which now has 14 depots spread 
these gains passed onto the around the country. 

. .. . i ne auction companies argue 

.-The price or a vehicle, how- that they save important 
ever, must be balanced against management lime for companies 
its resale value. This is where wishing to dispose of vehicles, 
the question of reliability and that they also cstahlish 
becomes of paramount impor- the true price for a vehicle 
tance, because a vehicle which because they operate in a 
may be quite acceptable over its balanced market place. There 
first two years or 3d,000 miles is no advertising and very little * 
of operation — the kind of scale correspondence involved, and 
on which most fleets operate— the seller has no problems of 
must also be able to prove that storing his used vehicles as; /or 

ri„f t 0e %< n0t *i 5Udde,1 ? y ^ XrU "P '"stance. be does when he puts 
faults after this period if it is it out to tender 
to be a success with gerund hand Against these u* 

buyers. Second hand values. f..r babnt? ° 5 mU , 1 ™ 

Princess range, which ran into an* .. * 1 . . ?■ '^ nicie 

a series of qualm- prohl -ms 7. nfTT^' 0 " L P ' r 

active ’ the 1 best T 

continued on next page . • 

.1* h-‘ 

r j.’vi. . 

• a". ' ' 

£ " w&rrk 
^VQ’ 1 r .* " 


*fi-. _ 


? . 


Financial Tiines Wednesday January -25 1978 



T > 

Better outlook on 

3 BUS and coach operators, politan county councils. Is one 
7 was an anxious year, but which the Government .showed 
which turned out to be not itself greatly sympathetic 
bad as many of them had towards in the White Paper, but 
*ed. where real solutions still seem 

Tie biggest bonus for the bus some distance away, 
l was the switch of Govern- Matters have been cdmpli- 
at policy in the June c * ted an essentia Uy political 
nsport White Paper, which row between Mr. William 
pped the plan to whittle Rodgers, the Transport Secre- 
iW subsidies for regional bus t&ry, and about a dozen of the 
vices in favour of a policy of county councils who are refus- 
als support at the cost of i n £ to play ball with his new 
und £15Qm. a year. policy. Some of them, like 

Tien at the end of the year, Oxfordshire, have a . well- 
shape of the compromise developed position of cutting off 
ween Britain and its fellow subsidies to National Bns r com- 
C countries over the appli- panies in favour of private oper- 
;on of the shorter driving day ators and contract hire services, 
bus and coach drivers be- Others simply resent what they 
ie dear and with a three- see as an alliance between a 
r phase-in secured, mos.t Labour Government fall the 
t operators breathed a sigh authorities are Conservative- 
relief. controlled) and .a State-owned 

.Ven so, very large problems bus operator in telling them 
lain. Stability of support for how much tbey should provide 
i services is better than a cut, in subsidy for the latter. Some 
with the number of pas- also argue, with what degree of 
gers carried by tbe National fairness it is difficult to assess, 

; Company's subsidiaries still that -NBC companies are less 
-lining at around 4 per cent efficient and more prone to 
/ear, revenue shortfalls are restrictive behaviour by. their 
;]y to become greater rather unions than private bus oper- 
n remaining constant — ators. 

ess, that is, there is a syste- The upshot of this conflict has 
tic reduction of mileage to been that although Mr. Hodge rs 
tch the decline in traffic. An wanted the counties to spend 
ra financial pressure of some more on buses this year to pre- 
nificance is that the White vent the erosion of their services, 
?er came out in favour of he could not find enough takers 
tudng or removing new bus and in the event the portion of 
int after 198MJ1. by which Transport Supplemental? Grant 
ie the financial impact of the for bus subsidies in the Shires is 
irter driving day-put at over 10 per cent, down for 
Im. by the industry — will be 1978-79. Ironically, Mr. Rodgers' 
king itself felt. biggest battle in allocating TSG 

[lie problem of deteriorating tbe previous year had been in 
s services, especially in rural trying, unsuccessfully, to 
■as— those administered by persuade the Labour-controlled 
• so-called shire ” county South Yorkshire metropolitan 
incite rather than the metro- authority to curtail its cheap 

fares policy and spend less on Another development in the 
transport. last year has been official pro- 

Caught in the middle of this motion by Government of 
conflict between central and experimental services involv- 
local government, the National ing paid car sharing (to be 
Bus Company has done well to legalised in the Transport 
keep its -financial position Bill). community minibuses, 
under control, with a net sur- postbuses and a variety of 
plus of £4.4 m. in 1976 and a other low-cost public transport 
similar result expected for 'alternatives. Later, NBC 
1977. responded to this 1 initiative by 

This has only - been achieved, declaring that where local 
of course, ' by carefully match- authorities were prepared to 
ing decline in passenger traffic P*^t , U P the cash for a village 
with decline in mileage offered minibus, and the villages the 
—a trend which although volunteer drivers, NBC would 
admirable In. good housekeep- drivers, maintain the 

ing terms tends to limit any y e hicles and help with market- 
attempt by Government to, as in 2- 

Mr. Rodgers has put- it, “stop Much obviously remains to be 
the rot” in public transport done in this field and it is to 
*** j • . • be hoped that some of the ideas 

t- OUtriOUtlOll being. tried do become genuine 

growth points rather than mere 
The Government’s other experiments, otherwise the 35 
main contribution to 'stopping per cent of households in rural 
the rot has been to include in areas still without access to a 
its Transport Bill npw before motor car will be condemned 
Parliament a . requirement to virtual immobility. 

upon all county councils to . ,, , 

write five-year' rolling transport ^ ^ ? ac ? 

■ _ . * i:t- A vdci pCT C6QL Oi ul6 Whole “ ■ 15 

The hL give the b£ dearly of some importance. And 

companies a more «cu£ %]«' “ **>'«• the debate about 
uing environment, although g UwS becomes 

the system can clearly only criucai - 
work in an atmosphere of The Government, although it 
goodwill — which . is signally has created the opening for 
lacking in certain' parts of the some ’ experimentation and has 
country now. . slightly modified the powers of 

the. Traffic Commissioners with 
respect to the five-year country 
transport plans, has resisted 
suggestion* from the Conserva- 
tive front bench that there 
should be a more fundamental 
relaxation of licensing to allow 
private bus and coach com- 
panies- -greater freedom of 
assault on National Bus’s and to 
a less extent British Rail's 
dominance of a large number 
of inter-urban express routes 
and on some urban, commuter 
routes. The argument against 
relaxation is that ordinary stage 
carriage bus services in particu- 
lar need the stability of a topgh 
licensing regime to survive — 
or at least to survive with any 
pretence of giving a complete 
network service. 

Positions within the industry 
itself vary enormously. At the 
one extreme is the five-vehicle 
coach owner (36 per cent, of 
the buses and coaches - in 
Britain belong to companies 
with a- fleet size of less than 14 
vehicles) who says he is being 
squeezed out of good routes 
by a monopoly: then there is 
a company like Wallace Arnold, 
the biggeft private coach com- 
pany in Britain, which wants 
a -relaxation solely on the long- 
distance routes to enable it to 
attack National Travel, NBC's 
coaching and express subsidiary, 
and finally we have NBC 
which more or less wants the 
status quo. except that it 

objects to British Rail being 
able to object to its licence 
applications without having any 
similar right to comment on 
new marketing ventures by 
British Rail. This last, bard 
line view on licensing,' is, inci- 
dentally, shared by the bus and 
coach industry's national asso- 
ciation, the Confederation of 
British Road Passenger Trans- 

The fact is. of course, that 
everyone has something to gain 
and something to lose by 
change, although tbe degree of. 
gain and loss differs. On the 
coaching side, for example, it 
was the licensing situation 
which restricted the big main- 
land European coach tnur 
operators, like Cosmos, from 
gaining a foothold in Britain 
and thereby giving them access 
to the U.K. domestic coach tours 


There are few: national statis- 
tics about the coaching industry, 
its 5.000 independent operators 
and 20,000 coaches, but the in- 
dustry's view is that although 
certain parts of its market — such 
as private hire of coaches and 
U.K. ~ holidays — have grown a 
little in recent years, the day 
trip excursion decreased to give 
an overall picture of a static 
market ' 

Wallace Arnold, with 300 

coaches and subsidiary opera- 
tions in motor dealing and com- 
puter services, had on a turn- 
over of £39m. pre-tax profits of 
£1.1 m. in 1976, of which about 
three-quarters was attributable 
to tbe coaching and holidays 
side. The result for 1977 is ex- 
pected to be about 20 per cent, 
up on the previous year. 
National Travel, meanwhile, has 
had two bad years, with a 17.5 
per cent, drop in traffic and 
revenue static between 1976 and 


Mr. Malcolm Barr, Wallace 
Arnold's chairman, sees the 
main opportunities for growth 
in U.K. coaching operations in 
packages marketed specifically 
for foreign visitors and in Euro- 
pean lours and express ser- 
vices, which have for Wallace 
Arnold been growing at about 
5 per cent, a year in the number 
uf scats offered over the past 
five to six years. His company 
has an ambitious programme for 

1978, which should next year be 
made even more exotic with the 
addition of a direct service to 
Moscow at £49.25 single. 

Mr. Barr supports, however, 
in spite of the improving per- 
formance of his own company, 
the widely held view within the 
industry that there are too many 
operators working on cut-throat 
rates and marginal returns 
within a market which contains 
ho explosive source of growth 
for the general financial health 

of coaching to be regarded as 
sound. This is one reason why 
reaching companies are 
adamant with ibeir pressure on 
Government for a reprieve from 
fuel tax. 

Mr. Barr also believes that 
because of the industry’s in- 
creasing capital costs — a stan- 
dard British coach . now costs 
around £30,000 and the higb- 
floored German models retail 
at almost twice that price 
— there will he a tendency for 
operators to seek working 
arrangements with each other to 
increase the utilisation of their 
assets. Interestingly. National 
Travel has this year launched 
a joint tour with its old enemy, 
British Rail. 

Such joint ventures could 
lead to the development of 
more, larger companies, al- 
though it is unlikely that the 
strong regional flavour of coach- 
ing will ever disappear. In- 
deed, the experience of National 
Travel, which tried the central- 
ised marketing approach, has 
been that coach tours have to 
be sold on a local package basis. 

Perhaps the greatest consola- 
tion for tl*e industry, beset 
as it is with the toughest end 
of the EEC drviers* hours prob- 
lems, is that with earlier retire- 
ment and greater longevity, at 
least the size of its potential 
market is not getting smaller. 




-i < *r'*~ 


hi ch the garage trade is pre- 
ired to offer. And auction 
>mpames also offer a number 
■ extra services, such as dean- 
's and re-conditioning cars, for 
n extra fee. 

Tiie question of maintenance 
osts is another factor which 
as worked to the advantage of 
ie U.K. vehicle producers, 
vidence produced by consumer 
ganisations chow that British 
rs to-day are no less reliable 
an their competitors’ vehicles 
{though the most reliable 
dividual vehicles appear to be 
-eign). and therefore spend 
out the same amount or time 
a garage. But U.K.-buiIt cars 
ire heavily on the price ill 
»ir spare parts, which arc 
ich cheaper than their over- 
„s competitors, and more 
.dily available. 

There arc signs that im- 
•lers will make a big effort 
become more competitive an 
s front during the next few 
irs. Cirrocn, for instance, has 
ently announced a 16 per 
it. reduction in the price of 
spare parts. On the other 
id, it is difficult to see how 
y can become entirely com- 
ilive without altering the 
inure of their car pricing: 
many importers prices are 
i steady and competitive 
Y because they can take 
her profits on their spares, 
bout this cushion they 
dd slide into unprufilability 

he cost of maintenance has 
n one of the most influential 
ors underlying fleet car 
'gn in recent years. This is 
• few front-wheel-drive cars 
their way into fleets — they 
perceived as more expensive 
service because of their 
oped engine compartments 
the integration of engine 

ut iherc are now the first 
unemigs of change in this 
ude, particularly since the 
rgence of the Ford Fiesta 
aEokPs attempt to introduce 
^as a fleet vehicle alongside 
!£lher inwJels. In the longer 
/^-virtually all small and 
vehicles will be 
^fctted.with. this sort of drive 


pattern simply because it offers 
great space saving within the 
vehicle itself— and space is. now 
at a premium as designers try 
to make cars lighter and 
smaller and more economical. 
It is likely, for example? that 
the next Ford Escort will have 
front-wheel drive. 

The area in which Imported 
cars have made the biggest in- 
roads into company (far selection 
is in specialist vehicles. A very 
large proportion ' of executive 
type vehicles go into the com- 
pany market-r-perhaps 90 per 
cent of a : ear like ’ the new 
Rover. But this preponderance 
of company sales, based on the 
fact that rhese sort of vehicles 
are a, desirable perk, or that 
small businessmen can offset 
them against tax. has' meant 
opportunities for importers. In 
particular, British Ley land’s 
problems at both Jaguar and 
Rover have opened the door to 
alternative marques. 

Among these, the Mercedes. 
Volvo. BMW and Audi have all 
made a significant impact. The 
new Audi 100. for example, 
achieved sales of only about 
one-third less than the Rover in 
Britain last year, and BMW hag 
experienced a rapid accelera- 
tion in its sale of larger cars. 
Following on the success of 
these vehicles is coming a whole 
new range of specialist ears 
from the Continent, including 
the Citroen CX, the Peugeot 
604, and the Renault 20/30 

Thus the market breaks down 
into two main slabs, with fleet 
cars which are bought in large 
volume for the use of represen 
tatives on the one hand, and 
more specialist vehicles which 
tend to have a larger perk 
element on the other. For the 
bulk purchases there is little 
doubt - that home-produced 
vehicles, with their well- 
equipped back-up sendees, are 
the best buy. But in the quality 
vehicles, selection .depends 
much more on individual' tastes 
and availability — and in many 
cases that may lead m the direc- 
tion of a foreign car. 

Terrv Dodsworth 

%Wk*Hcb iMaing. 

jaw you can choose _ 

feratakv of vehicle - from Aopley jrd 

I iuu one monihf's refuel, Apployard 
l resources help you nuke mare of your money, 
h tow Co do» rs. U* benalils. find budgeting and no capnal outlay* 

I Hir» and leasing Have never made batter business mom. 




' ' unite, pftottc. call for • nmor-modt q uo Wt wtO 


” LEEDS: MANOR STREET Te* (0532) 327S1 


N13SUNTal01-M*-54Sl . 

GLASGOW; » 6HAWLANDS AO CAD 6 Tat (041 J 632 6103 

V^svBwrfMTHefi'/NfiQfiMAifon to.- 

OLter ... •••■'' 

**IPANY_ ' '• 

... FTiS/i 

After 100 mMfion miles with 
Chryslet Tupperware are putting 

the new Chrysler Sunbeam 

Obviously, Tupperware have been very satisfied with 
Chrysler cars and the service they’ve had through the 
Chrysler Leasing System in past years. They’ve chosen 
1500 Chrysler Sunbeam models for their managers in 1978. 

Have you considered the advantages of leasing from' 
Chrysler'? As many national-name companies besides 
Tupperware have found, you’ll release capital for other 
purposes, save on administration costs, and benefit from 
terms tailored to your particular needs. 

And you can deal with any one of over 100 Chrysler 
Leasing Centres throughout the country, with delivery 
through as many outlets as you choose. 

Ring or write to the address below, and discuss your 
own fleet leasing requirements. 


Financial Times Wednesday January 25 1978 

i j * 


Company car sales 
lead the way 

COMPANY CAR sales have 
become by far the most impor- 
tant single component of the 
L'.K. market. Vehicles purchased 
by companies directly for the 
use or their employees, or which 
are in some way paid for by a 
business rather than a private 
individual, now account for 
between 60 and 70 per cent, of 
all registrations in Britain. 

This heavy reliance on cor- 
porate sales is a predominantly 
British phenomenon in Europe. 
Although a similar pattern is 
developing elsewhere m the 
EEC. particularly in France, it 
has not yet become such a 
dominant feature of the market 
that the industry is organised 
around it. Yet in Britain the 
structure oF franchise arrange- 
ments. the development of 
specialised financing arrange- 
ments for buying cars, and even 
the design of the vehicles them- 
selves. have been profoundly 
influenced by this development. 


The company car market has 
alsu played its part in deter- 
mining the relative success of 
the major car manufacturers. 
Ford U.K. was by far the 
quickest to spot the potential of 
the corporate buyer, and in the 
1960s it set out to exploit this 
market in every way possible. 
The Cortina and Escort models 
were specifically developed 
around the need for economic, 
lively vehicles with good carry- 
ing space and no frills which 
the average company needed. 
These two vehicles took Ford 
unequivocally away from the 
private-huyer end of the market 
epitomised by the Leyland 
Mini which sold mainly to first 
time buyers or as a second car. 

Since the mid-1960s all the 
British manufacturers have 
become acutely aware of this 
trend. The Leyland Marina 
was specifically designed— in 
something of a hurry— to head 
off ibe Ford challenge in this 
field. The Chrysler Avenger 
and Vauxhall Viva were other 
vehicles emerging in this era. 
To-day the importers are trying 

to move into the company-car 
field as well. 

There is little doubt that 
Ford's success in this area of 
the British market has contri- 
buted heavily to its achieves 
ment in overtaking British 
Leyland as the largest selling 
manufacturer in the U.K. This 

process has gone hand in hand 
with the development of a 
total range, a concept which has 
only been gradually adopted by 
other manufacturers, but which 
is likely to be a firm charac- 
teristic of the European in- 
dustry in the next decade. 

Ford evolved this range with 
the idea of giving the market 
a carefully graded sequence of 
vehicles. At the bottom of the 
structure it has small cars with 
low-powered engines, and at the 
top big cars with powerful 
engines, but in between it rings 
the changes to offer the utmost 
range of choice from different 
permutations of a limited 
number of body shells and 
engines. The idea is that some- 
where wiliiin the mixture there 
is a vehicle- for everyone, and 
that the cur grading system will 
fully reflect the different status 
of people within a company. 

The other big manufacturers 
in Britain are now beginning to 
copy this grading structure. 
Vauxhall, for example, has very 
deliberately widened Us range 
with the introduction of the 
Chevette and Cavalier, and 
Chrysler has followed suit with 
the Alpine and Sunbeam. Lev- 
land's new range of cars is also 
being planned with these careful 
gradations very much in mind. 

With this depth of interest 
and activity being shown in 
company cars, H is very difficult 
to see the trend towards expan- 
sion in this sector being re- 
versed within the next few 
years. The latest analyses- from 
dealers and manufacturers sug- 
gest that between 60 and 70 
per cent of The total British 
market is in some way attached 
to company purchase— end they 
also suggest that this percentage 
is going up steadily. 

The two main reasons for the 
increase in company sales are 
both financial. On the one hand. 

the price of new cars has gone 
up so swiftly in the last three 
years that private motorists 
have been frightened away. In 
an era of tight incomes control 
many motorists have simply not 
been able to afford the extra 
investment in a new vehicle, 
and the fact that car prices have 
also tended to go up dispropor- 
tionately more quickly than 
other goods has also had its 

On the other hand, companies 
have increasingly come to 
regard the provision of cars as 
an extra way of paying their 
employees. Some employees, of 
course, need a vehicle as a tool 
of their trade. But many more 
are now being supplied with 
company cars which are used 
For very little other than travel- 
ling to and from work. 

This trend is one more result 
of pay policy, since use of a 
company car can mean a lot in 
financial terms without in any- 
way addins to an individual's 
wages. Indeed, one large com- 
pany. ICI, had to be stopped 
by the Government (on income 

polacy grounds) from imple- 
menting a very wide-ranging 
system of car provision for its 
middle managers, last year. 

The Government also stepped 
in a year ago to. alter the taxa- 
tion rules an company cars. 
This change of policy had the 
objective of reducing the perk 
element in the provision of 
vehicles so that it would be more 
difficult. to use cars as a back- 
door method of paying 

The new system, introduced 
in April 1977, applies to all 
directors and any employees 
earning more than £5.000, who 
run cars which are available by 
reason of employment or used 
at any time for private use. 
Those employees who use the 
vehicle preponderantly for busi- 
ness purposes — defined as more 
than 25.000 miles a year — are 
charged tax only on half nf the 
estimated benefit incurred by 
executives using the vehicle 
mainly for private purposes. 
But those employees who get 
only “ insubstantial *’ business 
use out of their vehicle — defined 

THE TOTAL employed in road 
haulage has fallen steadily since 
the 1973 oil crisis and sub- 
sequent recession, and the trend 
is expected to continue during 
the early part of this year. 
There are encouraging signs, 
however, that the workload 
could pick up later in 1978 and 
that employment would show a 
corresponding rise. It is fore-- 
cast that in five years' time 
employment levels of the early 
seventies will have been passed. 

Ironically, despite title fall in 
employment the industry is 
suffering from a shortage of 
heavy goods vehicle (HGV) 
drivers. With increased demand 
for such drivers expected in the 
medium term the industry could 
be put in a difficult position, as 

there are insufficient training 
places to make up the shortfall 
This could have serious reper- 
cussions in the U.K. economy as 
a whole, holding back the pros- 
pects for growth on the back of 
North Sed oiL . 

It is only in the past 10 years 
or so that figures on the haulage 
industry have been available. A 
statistical vacuum was filled by 
the Road Transport Industry 
Board, which began operating 
In 1966l At its inception the 
Board's first priority in the 
manpower field was to establish 
a suitable, data base to giye it 
both national and local informa- 
tion. In the first instance it 
was necessary to establish 
nationally based . Forecasts and 
plans to -set' out. -overall' policies 

as less than 10 per cent— stand trim, radios, stereo sets and so experienced in -the post-Chnst- hauliers » c pec * "J e 

to incur even heavier charges, on to vehicles which, in the past mas period. The continuing net l.o per ex - - ora 

since their taxable benefit is would have been regarded . as increase in staffing uultrates present to ,u . 

deemed to be 20 per cent of very much at the utility end of optimism in the growth of bust- These forecasts are In sharp 

the original market value of the the range. ness later in 1978. but may auo conJras t w tn* recent pas(. la 

car. At the same time, many esecu- reflect the shortage of HGV haulage during the period 

The relevance of this new law tires are able to avoid the full drivers from which the trans* 2974.75 t here was an overall de- 

to the car industry mainly impact of the new regulations port Industry is currenuy siu- cline in emp i 0 yment of 8.4 per - 
relates to the different hands b y altering their driving habits- fenng.” cent . Redundancy among heavy 

on which the' “ benefit ” For example, employees wh.6 The industry’s problem is goods vehicle drivers was ppr- 
inherent in a vehicle are ealeu- ““ their vehicles mainly for in figures released last ticularly heavy. Averaged out 

lated. These are based on the Pleasure (that is, those who fall month by the Road Transport through the 1970s the total 

cylinder capacity of the engine, into the category of " insubstan* industry Training Board -numbers employed in road 

and have a positive bias towards tiaI " users), have an incentive (RTHB). These indicate that haulage have been falling at the 

the smaller end .oE the range, in pushing up their business the shortage of HGV drivers will rate of 3 per cent, a year. . 

For example, the benefit relat-. above 10 per cent, of „ Et worse before it gets better. _ recession caused a dmn- 

ing to a car of ISOOec or less is their total use. Similarly, tiiose in its five-year plan from L - ^ tbfi numb *j 

set af £175 a year if it is under ™ to the 25,000 : 197 ^ 79 the Board warns that * JrJJ CC “ L *£££ 

four years old and £120 if older level for business use have there could be a shortage of Dtra “ 

than that. Between 1300 and an •*** “. Pushing it more than 1,000 training places EJEmFiwKS’ 

«»»* is *t M if "•«** <-* - MB 

more than four years old), and T A 6G A n . . .estimates that 38.000 prates- anies ma s n i v in the tmentri* 

£350 if more than ISOOcc L'CSSCH -atonal haulage drivers will be P^es. mamij in 

(£235) - Another device ft to lessen .uncsamriM^^ numbers are expected to can- 

There is another complies- the impact of running davs. 5 tinhe falling until the end of 

tion in these regulations in that vehicle for the employee by getner zau - uw oay the year, although at a smaller 

cars costing more than £6,000 giving him company credit cards - Training facilities are ra j e> a j w fiich point the decline 
automatically put their users for petrol which is charged up expected to be more than s ^ould be complete.. In 1979 

into a higher tax band again, directly with the employer. .In sufficient to meet hauliers botb i arge ani | small companies 

Thus, in effect, the regulations this way, employees can have demands, but the needs of own- are | ike i y to experience's growf 

have given an added impetus to the petrol for private use paid account operators are likely to ^ demand for labour, 

the established post-oil crisis for by the company. . upset the balance- At present •* 

market trend towards smaller There is -no doubt- that there arc a little less than. 1,200 |4 1 firppQcf‘ - 

cars. In particular, this has. through legislation in the past HGV driver training places--860 A Ul ttaoi 

meant an upsurge in demand f ew years, the Government hks in - group training associations ^ the industry as a whole 

for smaller-engined vehicles, altered the character of the. and the remainder provided by-^ rtiTB forecasts that em- 

and has encouraged manufac- company car market- As these companies. By 1982-83 the total p| 0ymeiIl %vi ll rise slightly from 

hirers to look for ways of .changes feed through, they pap is expected to rise to l.oflO — this vear unlil 1979 and lhe0 

powering large capacity be expected to lead to consider- of which 1,100 will be in inroup j ncrease _ b y 21 per cent, a year 
vehicles with smaller units than able design alterations over the training associations — catering . “The increase in 

in the past next few years. The big qu^- for more than 300,000 timing d £ msmd ^ affect particularly 

One side effect of this trend UOD the j Bnt ^ s b vehicle days, which is ample for HGV dr j vers ”• says the Board, 

is that manufacturers are now manufacturers is whether they hauliers needs. “The other occupation likely to 

trying to up-grade the spepifica- Quickly enough to However, own-account be - affected most is heavy 

tions of their less powerful J 368 ® . F* operators are estimated to vehicle mechanics. There is 

models to make them visually “ ™ LiKS L require anything up to 350,000 already a marked shortage of 

as attractive and comfortable as t0 Keep , .training days in 198*2-83. -The craftsmen in the industry des- 

their larger, luxury cars. .This im P oriers at _ _ 500 or so training places in com- pite the drop in turnover levels 

involves adding higher quality X.JLI. raercial schools and own-sccount to the lowest for several years. 

' ' operators' centres will not be An annual increase in demand 
1 able to cope with anything like 0 f 2 per cent, is expected." 

^ m ' that amount and the shortfall 

. could rise to as many as 1,000 These, ppectations would 

/~f X places bring the industry back to the 

01 an verb sss 

ss 'rr r -0; gr-sWjM 

and priorities, but with refine- in business compared with the li0 ; 00 ‘: .P J c tars ae °‘ ,v tor ~“ creased — except for pipeline 
ment and development of its corresponding period last year. U Sfnoo traffic - where traffic trebled, 

data base, manpower data is The . forecast is for a net fall ,??? Both rail and water-borne trails-'*' 

now available for a very of 11.2 per cent, in workload, f n '^ port fell back significantiy. The 

detailed geographical sub- compared with a net increase „ volume of road traffic over that 

division of the country. of 29.3 per cent in the previous expansion at ter even . . : ncreajied bv 7 DCr ceQ » 

Other statistical itJormaUon quarter. ■ .. . though ihe number of unem- penod increased oy , per cent. 

is available from Overdrive, a The survey reports that a net pitted m the country as a whole Within this total there was a 

separate company set up with- decrease of J6.7 per cent in unlikely .to fall below lm. substantial decline in the 

in the Manpower group early sub-contracting is forecast in before 1983. The road haulage volume of freight moved by 
last year. Overdrive operates road haulage compared with a industry is said to expect the own-account operators, whereas 

as a specialist agency providing net increase of 2.1 per cent. *973 boom level of activity to professional haulage increased 

relief and contract drivers to last quarter. A net increase be recovered in 19S0. After that its volume hy 37 per cent, and 

the transport and distribution of 11.3 per cent in staffing date growth will accelerate still its market share from a third to 

industry. It also conducts sur- is expected, a little down on last more. nearly a half. It is the own* 

veys within the industry which quarter's increase of 11.8 per Recruitment of craft appren- account operators re-expanding 
are published as part- of the cent tices has already risen and 1,800 with the projected economic 

Manpower Index of work trends. • Overdrive states: “ These are now employed by hauliers, upturn that is likely to empha- 
According to Overdrive’s sur- changed expectations, particu- representing one apprentice for sise the shortage of skilled man- 
vey covering the first quarter larly in workload and sub-con- every eight qualified mechanics, power. 

of this year the road haulage trading, reflect the seasonal Over the next five years the n 'J 17 j 

sector is expecting a decrease downturn in business normally number of craftsmen needed by UaVId rfGUd 

Shortage of drivers 





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^ypjL) ’q-o 

Financial Times Wednesday January 25 1978 




TORIES are jubilant .about production cycle. Bqt'-by now 
success in the Bouse of the downward Line on the graphs 
nons* vote on the devalua- should have started tow turn up 
of the green pound. The again. Instead it has carried 
mment Is trying to console on downwards 
with the prospect that the The first commodity to be 
irvatives can now be affected, on February l, will bo 
led as the “Dear Food bacon, The impact will . be felt 
'. ’ Farmers and consumers immediately ■ by -Diitch . and 
ryiug to sort out what it all Danish exporters who have, been 
s - making fre«. with, the U.K. 

. John Silkin^ Minister of bacon market while, the: home 
culture, booming through industry has been languishing 
Imposition glee at the end in depreumon. - ■ 
e debate, on Monday, pro- a* present these exporters to 
*d “against the advice of Britain collect an.EEC Monetary 
Government the Commons Compensatory Amount fMCA) 
to-night voted for higher subsidy, on bacon shipped to 
prices . . . The people will Britain of £236 a tonne; On 
mber where the blame lies February 1. it- will be cut: by £66 
: the prices go up." - atomic. Taken at face, value 
e: system of green Curren- that would lead to an average 
was devised to cushion increase of Sp a pound ; .in the 
nal markets from the im- price of Danish bacon. ■ But 
of upward or downward Community life is .a complex 
mey adjustments. The thing. Almost as if they , were 
\ pound was .(and still is) expecting something like, the 
. l more than the real thing, devaluation to happen,--' the 
• le benefit of British conr Danes have been dispatching 
rs; in the case of Germany more bacon to Britain 1h«n 
the. other way around: the usual in recent weeks and can 
i Mark is- undervalued,, to be counted on to rush in as 
benefit of German farmers. - many - sides as . possible during 
e food and farming the next seven days before the 
^ ties, busy assessing ' the subsidy is cut. 
ficance. for them of the 7} With heavy .supplies . avail- 
cent. -devaluation, are . still able - “ old n ' prices; any 
;ing what refinements -they increase in . the wholesale, price 
t expect In the application of Danish bacon in Britain, can 
e change. Food .importers probably be delayed, or at'least 
exporters, on the -other the impact can be spreafli.-Xn 
, have no time for. cont'em- any case importers of Dimlsh 
>n. They are busy arrarig- bacon are not expected to pass 
their affairs to avoid the on ; the whole of the ris^ to the 
: impacts of the change. . consumer, Thjey have a rbputa- 
e devaluation, as Mr. SHfcin tion for absorbing some price 
>een at pains to point out;- increases.- at least temporarily. 
Intended primarily to help ho as not to scare off consumers 
pig arid beef farmers of with big. sudden -prire rises. 
in who have been squeezed The Government assumes 
e east-price wripgor for the that as the reduction of the 
18 months, and many of subsidy forces the Danes to 
n arc said to be on the point 1 - raise their prices, so the. British 
ling crushed beyond *salva- bacon industry .can Increase: its 
The national pig and beef prices and - pay farmers - more 
: herds have been decTining-for thrir pigs.' Because ■" the 
.te as part of the normal impart of the devaluation will 







Units ofwawnt per £' 


• Representative rate used to calculate 
U.K. agricultural prices 


Amount by whfch Green Rate-overstated 
international purchasing power of sterling 


Calculated against LL&S up to May 1973, since then against 
joint float currencies, in EEC units of account 

y;t'u a .u i i 1 , 'n l i'i-rn i.i | I m 



-l.t,! 1 




-i i i i i 




not be felt In the grain market 
until August 1, pig feed costs 
will not be affected until some- 
time next autumn — another 
consolation - for livestock 
farmers, and hot much of a 
blow to the cereals men who 
have been, doing. fairly well for 
the past couple of seasons. 

Beef extra 

Beef producers will also 
benefit in a roundabout way. 
First effect of the devaluation 
will be to cat the import 
subsidy HCAs on beef from 
Ireland ..and elsewhere in the 
Community by' 9p a' kilo. This 
should help prevent other 
Community - exporters ■ from 
undercutting ‘British producers 
as they have been accused of 
doing for the past year. The 
devaluation will ate) raise the 
intervention price— the level at 
which beef .is bought off -the 
market for stockpiling in EEC 
cold stores— by the same 
amount After filtering back 
through the beef trading, 
slaughtering and processing 
chain, this increase in what is 

generally termed the “ institu- 
tional price " will probably end 
op as an extra 4p or 5p a kilo 
in the beef fanners' pocket. 

The dairy industry will also 
be affected from next week, and 
although no increase is expected 
immediately in the doorstep 
price of liquid milk for domestic 
consumption, dairies manufac- 
turing cheese, butter, yoghourts 
and other milk products may 
have to pay more for their raw 

The devaluation will come as 
a considerable blow to the Dairy 
Trade Federation, the Food 
Manufacturers' Federation and 
the consumer groups which have 
been campaigning against any 
change and the Inevitable con- 
sequences of- dearer food. 

The National Farmers* Union 
delegates gathered In London 
for their annual general meeting 
are complaining loudly that .only 
the satisfaction of their long- 
standing claim for a 12} per 
cent- devaluation will get agri- 
culture going again after two 
years of depression, drought, 
and stagnation. 

' Feelings are mixed in 

Brussels. .Considering that Mr. 
Finn Gunidelach, the Commis- 
sioner-: for Agriculture, has 
asked Mr. Silkin to swallow a 
devaluation of around ‘3 per 
cent from April next, lie might 
be well -pleased with the 75 per 
cent change forced through by 
the British Parliament After 
all, when : it is fully effective it 
will \ t the Community’s hand- 
out in British food subsidies by 
a quarter and down to a mere 
£750,000. a day. 

Bat Mri Gundelach had been 
looking for a more orderly re- 
duction to MCAs throughout the 
Community as a whole. He had 
hoped the Ministers would ap- 
prove this spring his scheme for 
reducing MCAs by one-seventh 
each year for seven years so 
the Community could enter 1985 
freed for ever from the burden 
of the compensatory amounts. 
Clearly there will be no start 
this year on such a well-organ- 
ised phasing-out The. French, 
for eriimple, are already pre- 
paring fpr a 2.5 per cent de- 
valuation of the green franc on 
February 1, and are making 
noises which indicate a further 

2.5 per cent cut in April. 

The Italians, too,' have re- 
ceived the formal blessing from 
Brussels for a 6 per cent ad- 
justment in the value of the 
green lira. But there have been 
no signs yet— from the Germans 
for example^-that they are 
willing to fall into line and re- 
value the green Mark, as they 
have been asked. 

The way things are looking, 
such a move on Bonn’s part 
could lead ultimately to an 
actual reduction In German 
farmers' incomes this year. Mr. 
Gundelach has attempted to 
gain German agreement to 
similar moves in -the past and 
has -been sent packing each 

With such a hefty rise 
already in the pipeline for the 
benefit of British farmers, Mr. 
Silkin seems certain to ding 
ever more tightly to his demand 
for a freeze on the prices of 
surplus commodities — butter, 
dried milk 'sugar and possibly 
beef and cereals— at the annual 
EEC price review negotiations 
which are just getting under 
way. His resolve should be 

strengthened by the knowledge have to give ground in some 
that even before the review other sphere if he is to gain the 
French farmers. -the source of- concessions he is seeking. He 
much of the milk and butter is in no position, they say, to bo 
mountains, are fairly certain of immovably stubborn, 
a 5 per cent, price Increase. The keystone of Government 
And that is no way to get policy towards the EEC farm 
surplus production under regime Is a reduction in real 
control. terms in the level of prices paid 

Mr. Gundelach has proposed for farm produce. Mr. Silkin 
an average all-round increase of is under instructions to hnio 
basic EEC farm prices of about out for a price freeze this year 
2 per cent His original pro- in the worst surplus commodi- 
posals included a combined de- ties, 
valuation of the green pound 
and a basic price rise which « i_ • j 
would increase the average SUDSluV 
farmers’ returns in the UJK. by , 

a fraction more than 5 per cent. “ r - Sl,Iun “ a , 1 = n uoaerstaml- 
But since Mr. Silkin has already eager to keep the EEC 
over-stepped that with the consumer subsidy on butter, 
present devaluation, it is diffi- won year's review, and 

cult to imagine him tamely currently worth S!p a pound, 
caving in at the Brussels talks With a cumulative retail price 

and coming home with even r * se this year of at least 13p a 

more price increases for British Po un ^ in prospect, the loss of 
farmers and consumers. the subsidy, or even a reduc- 

The Prime Minister himself tion could have disastrous 
stolidly opposed an early effort effects on British butter con- 
to win Liberal backing in the sumption. Fortunately.- most oE 
Commons debate with a com- the othei agriculture Ministers, 
promise -devaluation of 73 per whose dairy industries rely on 
cent. Since this has now been Britain to soak up much of their 
forced on him, he will be in no surplus output, are fully aware 
mood to allow Mr. Silkin to go of the importance of this 

to Brussels .with ‘ a free subsidy. Tbis awareness, how- 

negotiating mandate; ever, does not necessarily mean 

Under these circumstances, they will agree to its retention 
Mr. Silkin seems to be fated to without extracting some ennees- 
hold out against any further sion from the British Minister, 
price rises for British fanners. Mr. Silkin is also seeking to 
This could lead to deadlock in legalise once and for all the 
the all-Europe prices negotia- special subsidised beef regime 
tions which arc supposedly applied in Britain alone. And 
scheduled to end before April, he i: still pressing for a revision 
Commission officials are not of the way in which the MCA 
dismayed. They are drawing subsidies are calculated on 
considerable comfort from the bacon. Devaluations help, hut 
length of Mr. Silkin’s shopping the lasting cure lies in this 
list at tbis year's price review, fundamental change which is 
It was plain from the outset that so hotly opposed by those with 
any flexibility on his part would most to lose— the Danes and the 
derive from the 30-odd per cent. Dutch. Their opposition can 
by which the green pound has only have been stiffened by the 
been out of line with sterling present 7} per cent, devaluation 
proper. Now that this flexibility of the green pound which will 
has gone, they believe, he will cost them so much in subsidies. 

Letters to the Editor 

a. basis for calculating the parties to make that their object tain boilers and clogs up the fire 
actuarial value of md ox Jinked . May j say finally, on a more W »{J» ex ^ B v * 
pu )ik;i,eciur pensions. •-. , . general note, that it is not our . 

,1. L.Carr... ■ • polk-v i 0 a m,er e rigidly to a beyond the personal, to all the 

56; BournemmiOi Drive., \- prescribed formula in judging Public discuKion and media 
'Herne Bc {t . Kent. v - . borrowing caparitv any coverage of the recent miners 


•* die Chairman, 

Bow Group oS. 

Anglia. , ' ' • -« 

•.-The ParliamcBt.ry rtrt.tu. AClUafial 

the devaluation of thu # ... . 

ux Pound has served to iHur lurgnn 
.e the probiuuw facing the J“*S* v * a ' , 

cultural industry., but the Krotn the Giufritwii, . V 

I. for. reform— -in the -in-. jHurim Paterson Assoctnuw? • 
its br producer, processor . Sir;— Let us not argue shout 
coiisumcr— is uf a wider how -many sols of Jifiures 
re. particularly since the actuaries should tjivo to normal 
icaliuu of Greece, Spain and pension fund Valuations. The 
jgai to join the EEC, Britain, critical is-sue Is h.owJ’they have 
he opportunity u> decisively presented, the costsJBf contract- 
»nce the structure of Euro- in^-nut. Here one nfi tjf-assump- 
agncuilure. for the next tions. whether they are 'chosen 

different— and stogie 
might add, can be 
reliable of ail. 

•H. L. P. Timber lake, 
.\ltbeu House, 

Baker Street, N.W.I. 

British Leyland 

i the rejection - and subsequent 
the most acc eptanee Of productivity 
we most re j atei j pay increase, why does 

this sort of information not have 
greater publicity? 

Surely it is very relevant. For 
the miners to work four days a 
week c|oes not -seem unreason 
able (I hope the rest of us, who- 
ever we are. still average rather 
more than that). It would to 
crease productivity by 33 per 
cent -Or am I being naive? 

May-1 say I do not blame the 
miners for this situation, but the 
who allow sbseijr 

duciion targets >luutld -bu rost of contravtinu-out of this 
id returns assured for nut- j*mpns«r therefore implies a 
i thin these limits on a two- judgment about the relative per- 

or the National Enterprise Board _ „ 

of this borrowing. Neither the 
Financial Secretary to the BeucwflMo. Bucks. 

»nce system: one for that formano* of a "privately” in.- • ,®5 r the Secretary ,qf. 

odity within the EEC with vested fund (private in .. this State forilpdustry have awwewd- C^oinc in fKa 
re which would give a fair pnhrevt including, nf course, jny questions in the Commons on ijtXallla III - IflC 
i and any surplus sold by commercial insurances On this -^5. '®*v, t T O L« M lrr. 

■reducer at world, market ihu employer i-s fully entitled- ■ iSiSS U-O- OEUKS 

to take a view and to do so be ,and cduld arrange further loans . 

ure agricultural increases' needs to- hove forecasts on of this umoont from commercial 'From -Mr. ff. WsOdnaon. 1 
1 be kept to the level neces- djfferent sols of assumptions so bankA . w t«* ou t some form of Sir.— to his letter of January 
:o cover the costs of efl)- that be wn assess the likelv Buarantee on thcj basis of its 24 Mr. Attkins qu«tions Anthony 

producers. Small, inelfi- area of risk.' 
farmers should be separ- Slartih Palerton. 
treated f brooch the Guid- w. Hertford Street, 

Fund or. more probably l*crk Lane, W.l. 

Ui the Regional or Social . 

iminon price system based Mam 117)17)011 
common trading price it vniwu 

be established )o view of L nil » n . 

fflcultyMn achieving cur- RQU HOUSES 

bdiw - ^ -^"*9 Chairman 

likely performance. And to- Hams’s assertion in his Lombard 

deed it. was only the reluctance column of January 17 that 
of the banks to advance farther central frank intervention to 
sums which led to the Govern- dollar support operations reduces 
meat rescue in -the first place. xJB. money supply. He points 
•fltoh I supported. .out that U.S. Treasury sales of 

The tactics of British Leyland either marketable or non-market- have been to arrange a bie debt reduces the need to 
for Government finance and then tap the domestic market so that 
with this backing to borrow the the effect on the money aggre- 
money more cheaply in the City, gates is neutraL 

S evern of surpl uses twin# Indeed,. Lord Ryder admitted « Surely the point Mr. Harris 

■I the - disposal should; ltt . evidence ^beTore the was maidng was that the effect 

the EEC primarib'- and Trade and- Industry Sub-Copraut- 0 f support operations is to 

Oe: .a repetition of the - Bcnmacm (Janu- tee ol tins- Bouse. Tbats all reduce the money supply in the 

■ .tele of butter to Eastern 2IV . tates =. f^3tifj*ing very weU but the money aulho- sense that it Is lower, than It 
t, which -found its way nJeI ^ sr w our pofrliwifion. but nsed.^by’.tbe House of Commons would otherwise have been rith- 
-THjy he draws. some ower-fanclful if w» for expenditure on.capiial ont the intervention.- In this 
JftaTstructaT» measures aot- mischievous conclusions on investment had not for currwt sense toe potential growth in the 
j-¥i:he added much , greater our moruroe leading policy. Of P®Toses *a& l would doubt the -aggregates is nullified without 
r45y- of-food- policy by the ^ not hacking for the Federal Reserve action. As Mr.| 

n 'Parliament. - Until between- .-peo^e in banks -If the money Is required Harris points ont, to this very; 

ensures have been- deve^'S^S^ e ? rtk - . important sense central bankers] 

c primary objective matt *** omtxaWn the UB. money 

-• ’pins currencies better into . Ito-jlBuros given - werf; faivb-. jbuut ■ .flip • position of other supply policy, 

order that U.K. produc-- 1 111 ^ ,rom ■ *wh as suppliws and Eventually, lending to the| 

irticuinrly in the livestock vSw* P ATfe S? L« it^is^riear us - hanking system, principally! 

is not cut back further I s7 *’ "C 3 * wrong .that .the banks should be finance operations aeainst a 

s«i dei'aluaUon of S' frora ^ at «°“ cn able to obtain security for their weak doilariSll beS^e^ex-1 

' “S'- ag&egztes* ^^reported 

isps,- l o^ Sy^Ss&s-T^ssi 

^ Lit MMiSrterv-iny ^tatooeat as to SinS and risin* toSrit 

occniive to this key sector 

R, Gropary, 
fpfe Ha/bom. 

W.CJ . 



■fr. J. Carr, 

■your readers will have tbelr whether tot Government is to R P wfutlnson 
own vil'ws — but rould it be. that f aca . wiUtog.. to suaramee oi™ 
most single men purchase in pre- British Leyland debtore despite Lon* EC4 ! 

par a tion for roarrinRe. whereas ^ observations of the Public J0/IZ ’ Tnnxia uute ' 1 
women roneern . themselves only Accounts Committee on this very 
with own immediate require- point. ■ 
ments? Women certainly still _ rx w .. 
wn Toss than . men in raqny . ..’t-. “tier. 

Industrial occupations and in Hoesa of Commons . S.Wj. 
some othors. anil are they not 
also more cautious about their 

-If pension funds could be commitments and less optimistic jVflllPrC rfrAfllYl 
d only at fixed intertf>u about t?wir future, income iTimw o tucuux 
ie (January 12) .could prospects? Again, are men more 
right in thinking a 4 apt to look on a properly from dl iiUUlC 

d only 

e __ _ 

at. real return on invest- an fnvestmeuf -angle, 
optimistic. But pousiou higher up the range? 

Saddled by 

From Mr. SL Minier 
Sir, —Four years of Socialism 
have brought small businesses to 
their knees. Multi-rate VAT. 

and aim high personal taxation and in- 

Arc they From . Mr. A, Bofrh. creased Government interfer- 

invested tn equities, better able than “the weaker Sir,— I have recently acquired 
average yield . is now sex " to manage the upkeep.of a two itexna,of interestirdt infanaa- fSS 11 "*® of leststewon «uice 
84 per cent, and which residence., larger than their tion, both or which affect me 
i the past yielded consider- needs? perapnaily^-but . also several ■ j?. J*» 

lore to tax-exempt, toves- - Mr- Reanison also points to million othars. ■ fo fo®* Mr. ^vid 

the tower prices paid by joint I understand that absenteeism Steely and tos ^rtiaroeoiary 
uturc share prices ami purchasers other than married in the Welsh coni mines is cur- friends are prepared to saaaie 

ids could be foreseen with couples, -and we have said that really, rimntof at 37 per cent “to corotrt» vote y« more 

ty there would -be nu this is something- of a variety That is. to say that the average months orsociaiist roie. 
ty in offering index-linked category. It can cater, for ex- man Is only .wooing three days . Tire etertorate must snreij to employees of private ampl*. for the inclusion" of rela- out of five every week in the now draw the eonelnston that the 

ind the tmo cost of lnd?x- lives - helping young rnarricd«5 year, i learn that anthracite womis must never agate m in 
' public sector pensions with the -wherewithal, for supplies, from the-National Coal a porinon teexercise the balance 
be calcuVated. . -AUhough studonls attroetna: % to share Board in South Wales to South at power, Tteir natural in din a- 
impossibie. the object of limited accommodation, and pci> Bucks; (and presumably else- -Jfo 0 seems *0 be to tilt me 
could be Kecuwd- ..hy luipa for a pair of hrothora or. where tire country) toe balance in one direction only, 

indexed Government sisters in temrwrary Ditiance ralioped; -aj*d if people tike and teat ntoan disaster for 
ies with on interest rate pending one lca^'tog to marry. . myself' wl»7 bvrn this fuel want, free enterprise.. \ 
baps 3 per. cent,' in which : Oh the question whether such more than the coal merchant has. Michael larater 
r individuals and tosur*, joint ventures can secure as high been allocated, then aR he can (former Liberal Parliamentary 
oropauics, as well- as pen* a loan os a married couple, one offer. Is imported Polish fuel of candidate, 1974). 
rads, could invest. • The can wisape situations where it inferior qualify (Imleed, it vrUl'3*. 1 Thrift 
on these bonds wwjldUo would bo most unwise for the hot burn properly at all in cep- Pens wood, Ken t. 


Labour Party national execu- 
tive meets, 

TUC General Council meets. 

South 'Wales miners hold new 
ballot on NCB pit productivity 
scheme. . 

National Farmers’ Union annua) 
meeting ends, Central HalL West- 
minster. .? . . 

Mr. Constantine Karamanlis, 
Greek Premier, arrives to Umdon 
for talks (rith Prime Minister on 
bid by Greece to join EEC. 

Mr. Reginald Freeson. Minister 
for Housing and Construction, 
chairs conference on “ Small 
Firms in thjj Inner City ” at Leeds 
Chic Ball n Other speakers In- 
clude Mr, Robert Cryer. Under- 
Secretary, Industry, and Mr. 

To-day’s Events 

Kenneth Potts, chief executive, Select Committees; Science and 
Leeds City Council. Technology (General . Purposes 

Internationa] Hotel and Cater- sub-committee). Subject: Fus- 
ing Exhibition opeps, Olympia ment and discharge lamps. Wit- 
( until February 1). nesses: Prof.. S. Prais and Mr. 

Sir Peter Vanneck, Lord Mayor L D. M. Meiklejohn (1030 ajn^ 
of London, attends Fruiterers’ Room S). Overseas Development 
Company dinner, Plaisterers’ Committee. Subject: Renegotia- 
Hall. E.CL2. tion of Lome Convention. Wit- 


House iff Commons: Scotland p .m_ Room 6). Expenditure 
Bill, committee. (Soria) Services and Employment 

House of Lords: Debates on sub-committee).- Subject: Em- 
international conference on ployment and training. Witnesses: 
tanker safety and pollution pre- Manpower Services Commission 
vention; and on contribution made <4.30 p,m., Room I2 t. European 
to the economy by tourism. Legislation Committee. Subject: 

Agriculture Price Review 197S-7fl. 
Witness: Mr. John Silkin, Minister 
of Agriculture (4.30 p.m.. Room 
la). Nationalised Industries (sub- 
committee C). Subject: Bank of 
England report and accounts. 
Witnesses: Bank of England (4 
Pjtl, Room 8). 

Tate and Lyle (full year). 
Union Discount Co. of London 
(full year). 

Devenish (J. A-). Weymouth, 
12J0. Gleeson (M. J.), North 
Cbeam, Surrey, 12. MEPC, 
Dorchester Hotel, W., 12. Rodman 
Heenan. Connaught Rooms, W.C.. 
12. Whessoe, St. Ermin's Hotel, 
S.W., 12. Wolverhampton and 
Dudley Breweries, Dudley, 12. 

Alec Duff, Transport Manager of Security an d Courier Express. 

"We’re extremely vehicle dependent 

For flexibility as well as reliability 
we chose Camden.” 

Not fhatAIrcThiff didn'tlakea dose lookatother contract hire andleasrng companies out of breath, 
people before he didhis deal with Camden . Bitf not Camden. B«3use / having handled all the 

In the first place any transport system had to fit fin an dal arrangements lor you, having worked out 
him Hkea glove. And, with 25 depots all over the the best investment and tax savings, having stabilised, 
county it's nohab\- r s mitten. _ yc\ur on-going costs, and having delivered the 

In the second place his operation is constantly transportnrixtiiatexactlv'suitsyourreqLiireriierLtS/W-e 
expanding. Keeping up with, and servicing, his know we've put you on th e right road, 
c h a ggn g franroort requiremenls would leave most Then we keep up with you. 



Fibroy Housed 69-79 Lake Street • 
Lri ghtonBugeaid, Beds, UJ7S5)T . 


Financial Times Wednesday January 25 1978 


Davy International at £8.4m. midterm 

months to September 30. 1977, at 

Dqv.v International rose from w 

£7.310. to £8.4 m. Profits for aU INDEX TO COMPANY HIGHLIGHTS ’ 

J 976-77 came to IlS.TSm. 

Sir John Buckley, the chair- Company Page Col. Company 



man, says tnat tne year to dale /w r ^ 



Glass Glover 



allhouch there will not be the Amigmtd. Distilled 



Greenall Whitley 



same dramatic increase in earn- E . . / Peter j ” 

- 26 


Green Group 



seen last year, full-vear results Carpets Intni. 



Hickson & Welch 



will be good and liquidity remains lfttn | 



Pullman (R. & ].) 



. 27 


Ratcliffe (F. S.) 



in earlv April, is lifted from 3J!5p Feeder 



Stenhouse Hldgs. 



to 3.63p net per 25p share casting 

Although borrowings pose from 
the year-end levels of. around 109 
per cent of shareholders' funds 
falling Interest rates- have left the 
actual charge little changed. 'Hie 
group operates in the more re- 
silient childrens' clothes market 
which accounts for around a half 
of sales. With higher orders re- 
ported for the UJt there la little 

reason .why the group should not 
hold onto the 18 per cent Increase 
in the second half.' At 96p (up 
2p> the shares yield 9.6 per cent, 
and stand on a prospective p/s 
of 10. 

Earnings of the Head Wright- 
5o n companies have been main- 
tained ' during the current re- 
organisation and integration 
between the relevant parts of 
Da\nr and Head WrighLson. which 
is making steady progress, says 
Sir John. 

Herbert Morris is maintaining a 
reasonably satisfactory position, 
notwithstanding the keen inter- 
national competition in the 
markets it serves. 

The overall order position has 
been held at about the £1.2 bn. 
lei el but world economies con- 
tinue to lack buoyancy and the 
getting of orders demands effort: 
high efficiency is essential to 
maintain competitive strength, he 

Members are told that the figure 
for work done is influenced by 
rhangc.s in the mis of contracts 
and by the effect of currency 
changes and undue significance 
should not be attached to the 
slightly lower level. It is not pos- 
sible. at this stage, to calculate 
precisely the tax charge for the 
year as this will depend on the 
accounting treatment of deferred 
tax which, in common with other 
companies, is being studied. First- 
half tax. including deferred tax, 
i-; charged at 52 per cent. In- 
cluded in the extraordinary Items 
is a gain of £1.7Sm. on the dis- 
posal of the shareholding in 
British Rollmakers Corporation. 
Although no tax is payable as a 
result of this transaction.' a de- 
ferred tax adjustment has been 

See Lex 

drop for 
W. G. Allen 

United British 



After tax of £5S6,32S. against 
£.i« i,655, available revenue of 
I'nited British Securities Trust 
improved from £876,666 to. 
£937.389 for the • half year to 
December 31, 1977. 

As already announced the in- 
terim dividend is lifted from an 
equivalent Ip to 1225p net— the 
previous year's total was an equi- 
valent 3.975p. 

Net assets at ihe half year end 
were 158p |140 A ) per 25p share. 

ENGINEER W. G. Allen and Sons 
(Tipton) is heading for a fall in 
fall-year earnings after a £55,000 
reduction in pre-tax profits to 
£180,000 in the September 30, 1977 
half year. 

Directors say second hail 
results are unlikely to equal last 
year's final half performance. 
Profit for the whole of last year 
was a record £0.63m. 

But they say the latest projec- 
tions support their intention to 
increase dividend by the 
maximum permitted 10 per cent 

Trading conditions were mixed 
in the half-year with sales of free- 
standing air heaters particularly 
good and sales of steam boilers 

Sales oF hot water boilers ana 
fabrications at the Upton works 
and of mechanical handling 
equipment continued to reflect 
the lack of any recovery m 
capital investment and construc- 

Output at Tipton was also 
severely restricted in August and 
September by wage disputes 
which continued into October and 

The Tipton works’ ability to 
produce was also hampered by 
British Oxygen’s inability to make 
deliveries, also a result of wage 
disputes. The overall effect was 
to reduce margins. 

The reduction in profit came on 
sales ahead from £2 .73m. to 13.1m.. 
and the result is subject' to tax 
of £93.000 (£122,0001. 

The interim dividend is 
unchanged at O.Sp net: An 
adjusted l.TBSp final .was paid 
last year. There was a one-for-10 
scrip issue in October. 

F. S. Ratelfffe Industries reports 
an advance in pre-tax profits from 
£86,710 to £114,783. 

After tax of £60,000 (£45,500) 
earnings per 25p share are shown 
to be ahead from 5.1 8p to 6.89p. 

Tine net interim dividend is 
maintained at lp. Last year’s 
total was 4.7p from profits of 

A recent professional valuation 
of the company's, properties 
totalled £200,000 which represents, 
in total, an increase of £121,466 
in net book value as .atr October 
31, 1977. 

P. Black 
near £lm. 
at midway 

by R. & J. 

REPORTING pre-tax profits ahead 
from £804,000 to £994,000 for the 
half year ended October 31, 1077. 
the directors of footwear and 
travel goods manufacturers, Peter 
Black Holdings say that as always 
the group Is subject to market and 
margin pressures, hut the order 
position is healthy and “we face 
the future with confidence.” 

Earnings are shown at 11.92p 
(9.65p) per 25p share and the 
interim dividend is. raised from 
2.2p to 2.42p net Last year’s total 
-was 5.75p paid- from earnings of 
1783p. Pre-tax profits came to 


Geers Gross package ' 

raises £1.14i 

; -The prospectus ■ fa published 
to^lay in connection with the 
requotation of Geere Gross and 

the 23m. shares being 1 Issued 

- following the acqulsioonof the 
US. advertising group Richard jfc. 

<3«ara shares were suspended 
at 51p last December pending 
details of the S3im- deal. • 

To finance the purchase Gees* 
has arranged a one-for-one rights 
issue of 1.421,400 shares and fr 
placing of 1,323,600 shares, both 

Geers, which first came to the 
market in November 1969. acts as 
an advertising consultant with 
most of Its business concerned 
with packaged goods and other 
consumer products. No single 
.client accounts for more than 15 
per cent of turnover, 

Geers acquired Browne's 
■" Advertising in 1974. Browne s is 
mainly Involved in new news- 
paper advertising. 

Profits before tax have risen 
from £1S4.000 in 1972 to £275.000 

recommending 1 a final divid end o[ 

1 7io36p per share makhtg a total 
of 2.52536P. 

Rfcmoff directors indicate net 
full-year profits will be lower at 
5Li56m. (SUTTm.) despite a 13 
per cent increase in fee Income ‘ 
to $4JhxL which was absorbed by 
higher payroll costs. 

Geers is forecasting a profit for 
197R of not less rhan £350,000. 
Man off directors are forecasting 
not loss than SLfim. for the 13 
months to December -1978 of 
which 8900.000 (£462,000). wifi be 
attributable to Geers. 7 

After allowing for* Interest 
costs on the purchase the com- 
bined profit forecast is £685,600 
which will moan earnings per , 
share on weighted .average capital 
of 5.S2p. I''"'' i 

A net dividend of 3p Is fere*, 

Brokers to the company are 
Sheppards and Chase, and deal- 
ings start February L 


SLr John Buckley^ chairman, of Davy International. 


• comment 

MERCHANDISERS and manufac- 
turers of garments and textiles, 
K and J P ullman- lifted pre-tax 
profits from £342,000 to £403,000 
for the six months to September 
30. 1977. on turnover of £6 25m. 
compared with £5.L6m. Profits for 
all 1976-77 were a record £946,000. 

The directors state that towards 
the end of the first half , signs of 
an improvement in home trade 
appeared and these have become 
stronger in recent months. With 
orders in hand well ahead of last 
year, both from the UK. and from 
overseas, they anticipate a very 
satisfactory increase in turnover 
and profits for the full year. 

After incorporating stock appre- 
ciation relief there is no tax 
charge (£10,000 adjusted) and 
earnings are shown at 7.04p (5Jtp) 
per 5p share.. The interim divi- 
dend is lifted from L65p to l.Slp 
net. Last year's final was 3.7785 p. 

With most of Peter Blaeh’s one 
third sales rise coming from 
volume growth, -the first half 

• Data 





of sponding 


last ' 





year- ' 

W. G. ARen :... 


March 31 




Amah Distilled Prds_. 


Feb. 28 


— . 


Peter Black 



May I 




Davy International .. 







Glass Glover 


April 1 



U - 

Green Group 2nd int 


March 24 




Ringside lnv 


March 29 



L9 - 

M3M Holdings 



April 10 



9 - 




diversification into the growing ^ _ „ - , _ . „ 

UK. leisure markets Is continuing R* aud J. Pullman int. 1.81 

to pay off. Apart from gaining ^ S. Ratcfiffe int 1 

market share in the traditional Dividends shown pence per share net except where otherwise stated, 
slipper .trade, the important foot- •Equivalent after allowing for scrip issue. tOn capital 
□as oeeu increased by rights and/or acquisition issues, i Paid as final 0.537p 
and second final 0.3568p. § Australian cents. 

wear division, which 
increasing manufacturing capa- 
city, has broken new ground with 
outdoor footwear such as training 
shoes and plhnsoles. This is also 
evident in the. growing leisure 
division, which distributes the 
Adidas product range, and in 
travel bags, but the. latter has 
been susceptible to lower con- 
sumer spending. Overall Peter 
Black’s increased m exchan ting 
activities has meant a big jump 
in stock levels (up 90 per cent, 
at end April 1077) and higher pvpnPTTNC: 
interest charges are squeezing 




For the six months to October 
31. 1977, precision spring manu- 
facturers and painting contractors. 

• comment 

Virtually ail the improvement In 
pre-tax profits in R. and J. Pull- 
man's first-half was accounted for 
by a rise of around 65 per cent, 
in export profits: export profits 
'are now around £141,000. Mean- 
while at home performance was 
fiat, as costs rose. The only 
benefit that the group reaped from 
the doubling of leather prices 
between January and August was 
the elimination of its tax bill 
through stock appreciation relief. 

£3.2m. Australian 
losses hit Carpets 

SPORTING HIGHER than ally tbe main selling sei 

f Th?SmS*atTlSi7i losses £Um. *** four months of ** year " 

high of 134p, prospective from Australian subsidies, Mr. n “J pe 5ff“ ai £a?“ 

In 1976. in the first nine months 
1977 Geers Gross made pre-tax 
profits of £134,000. Profits before 
tax increased every year apart 
from 1974 when there was a 
£69,000 setback. The following 
year Geers bought Browne's, 

- Tbe business carried on by 
-Manoff was ' founded in 1956 by 
Mr. Richard K- Manoff. Like 
Geers its advertising activities 
are mainly confined to consumer 
products. No client accounts for 
more than 17 per cent, of turn- 

Profits before taxi but after 
-profit sharing and bonus, at 
Manoff rose from $240,000 hi 1972 
(year end November 30) to 
$700,000 in 1976. In the nine 
months to August 31. 1977. profits 
were S2SS.OOO. Profits before tax 
expanded each year apart from 
1974 when they fell from $257,000 
to $161,000. 

Turnover at Geers for 1977 is 
estimated at £S.3m. (£S.6m.), the 
decline being the sale of Browne's 
Recruitment Division. Profits will 
amount to not less than £280,000 
(£275,000). The directors are 

The acquisition of Manoff by 
Geers Gross with the subsequent 
rights issue and placing have been 
made with an eye to the future 
rather than any immediate gains. 
Initially there will be some 
earnings dilution, but this is 
probably no more than -Jp»- and 
though the underlying net asset 
base will be eroded this is not 
too relevant for a business such 
as Geers. Prior to the deal net 
asset? per share were close to 
Up but afterwards there will b4 
precious little after stripping out 
goodwill. In theory profits should 
benefit long term from an inter- 
change of international clients. 
Small shareholders - who are 
offered 731,400 new shares are 
faced with rather heavy terms, 
one-for-one. However, since Geers 
was suspended at 51p last month 
the shares of some of fts contem- 
poraries have performed well. 
Saatchi is up by 20 per cent and 
Brunning 13 per cent A likely 
ex-rights price could be in the 
high forties. Assuming 47p the 
prospective p/e would be S and 
the yield would be 9.7 per cent. 
At that level the yield is tbe 
obvious prop. 

Yearlings rise to 7% 

7J3 per cent. 

Roger^ Wa ke, th e, charms »f r "« mid JSfSX 

SSSSoJ^SSSPi rndS helped by 11-week power 

Election, members are told. ' 
With the aid of management 
consultants the directors are con- 



On January 20 Cazenove bought recommend the payment of a 
25,000 Updown Investment shares dividend in respect -of 1976- 
at 5Sp xd for the account of their 77. 

jTSZ'-IH Performance hy the UK. solid ating operations’ "at Totten- 
atflfS “ d . oft* ©rafaea* ham. Melbourne, and dosing the 
SrtS? jSS rtf r,-SS operations has .been satisfactory plant at Granville. Sydney. They 

NathaniS, TO.000 MadiSJl hSTS ^spinning at 

Tnssand’o Ordinary Shares at Kin s ^ ys ^ Mx - However, rarat Bendigo. Victoria, and have sold 

on behalf (rEfTp^^ro^nd 1 Sort resultant profit has bgn the freehold at Fotrtscray, Mel- 

• eroded by the. losses in Australia bourne. These moves will signi- 

- •’* iand therefore, he tells members fi wmtiy reduce overhead costs as 

that] he is taking the exceptional well as improve the financial 
step, of reporting now -rather position of the company, states 
than waiting for the preliminary the chairman, 
announcement in April. Product ranges are being pro- 

At half-time, the chairman gressively rationalised and the 
warned that Australian losses directors are pursuing a strategy 
would be severe, but expressed of concentrating upon those areas 
confidence that Pacific Carpets which they believe will yield the 
International would be trading best results in the future, namely 
profitably by the end of the year, tufted and printed carpets. Full 
He believes it would have done advantage wOl be taken of the 
so, following tibe closure of modern Zimmer and Stalwart 
Axminster weaving operations, printing plants, the output from 
“ if there; had been even a which is steadily increasing, they 
moderate improvement in trading say. 
conditions in what is tradition- See Lex 

MAIBL Bermuda 

(Far East) Limited 

Midland and International Banks Ltd. (MAIBL), the 
oldest of the London-based consortium banks, and 
The Bank of Bermuda Ltd., the largest publicly-owned 
bank in Bermuda, have come together to form a new ■ 
Far East venture based-in Hong Kong. 

The company is called MAIBL Bermuda (Far East) 

Limited and will be active in the international loan mar ket, 
particularly in the Far East bringing together as it does 
many complementary aspects of the two banks’ skills and 

Whether the scope of your business spans the globe or 
is centred on the Far East, this new venture is destined to 
become a valued financial ally in helping you realise your 
future plans. 




MAIBL Bermuda (Far East) Limited 

1007 Hutchison House, Hong Kong. Telephone: Hong Kong 2668GL Telex: 86017, 

The coupon rate on this week's 
batch of yearling bonds has 
moved up to 7 per cent, compared 
with 6* per cenL last week. The 
bonds are issued at par and due 
on January 31, 1979. 

The issues are: Newbury Dis- 
trict Council (£}nO, Renfrew Dis- 
trict Council Uira.), City of 
Sheffield (£Jm.) City of Dundee 
District Council (am). City of 
Leeds (£Um.), Corporation of 
London (£Jm.j, Cambridgeshire 
County Council (£}m.), Chanwood 
Borough Council (£imj, North- 
.tyneside Metropolitan . Borough 
Council (£}bl), Slough Borough 
Council . (£im.>. South wight 
Borough Council (£?m.), London 
Borough of Merton Gram- 

pian Regional Council film.), 
London Borough of Redbridge 

(£lm.), Clwyd County Council 
(£1 ul). Kirklees Metropolitan 
Borough Council (£]m.) Borough 
of Eastleigh (£Sm.). 

Two-year bonds carrying: Sf per 
cent interest and due on January 
23, 1980, at par are issued by 
Corporation of London f£*m.) and 
East Hertfordshire District Coun- 
cil (£im.). 

Variable-rate five-year ' bonds 
with interest of f of a point over 
Libor and due an January 19, 
1983. at par have been Issued by 
Borough of Pendle (flm.), Traf- 
fOTd Borough Council (£Jm.>. 
Sevenoaks District Council (£lmj. 
Borough of Thamesdown (£$m.>. 

Orkney Islands Council has 
raised £Jm. through the Issue of 
103 per cent. Bonds due January 
19, 1983. at par. 

m : 

i *- 

* ' « ‘ 
r H a 

Hickson & Welch warning 

IF PRESENT trends continue 
Hickson and Welch (Holdings) 
wifi have difficulty reaching last 
year’s record £10.14m. profit, Dr. 
T. Harrington, chairman, says in 
his statement with, accounts. 

He says world trade remains 
depressed -and demand from Its' 
large markets- In Western Europe 
and the U.& is less than at the 
same time last year. Also the 
improvement in sterling WH1 
depress the export trading 

But the group continues to 
Improve efficiency and Increase 
Che productive capacity of its 
plants and its range of products. 
The sterling value increase will 
also make imported raw- materials 
cheaper. . 

Whan improvement does come 
to worid economies Hickson will 
be in a position to produce’ Better 
results than any yet achieved. 

Capi tol spending for the current 
year is planned at £7.4ni. 

As reported on January 13. turn- 
over to September SO, 1977 rose 
from £5446m. to £68 Jim. 

though that was a record for the 

Guardian Building Society, in 
contrast, reckons that the quality 
of borrowing has already started 
to fall, and after a rise in 
liquidity from £45.71m to £57JS5m. 
— some £14m. of which was put 
into tbe National Savings Bank 
before- the new deposit limits were 
imposed in the summer — the 
society is now going for a policy 
of controlled growth. The net 
investment inflow rose by 16 per 
cent during 1977, lifting total 
assets by 16.9 per cent to 
£207.73 m. Tbe amount lent on 
mortgage increased by 13.8 per 
cent, to £I48.62m. . . 

At Bridgwater Building Society 
advances Increased by some 12 per 
cent, during the year. Assets rose 
by 21.5 per cent, to £H7.5m. 

How did your Pension Fund 
perform during 1977 when the 
Equity Market rose by 49% ? 

The Investment return on your pension fund is a crucial 
factor in determining the real cost of providing pensions. 

if your pension fund Is invested in an Exempt Unit 
Trust oran Insurance Company Managed Pension Fund 
or if you are advising clients in this area, the best aid to 
making decisions and monitoring performance is the 
Survey of Pooled Pension Funds. 

The Survey contains comprehensive performance 
detailsof over 130 tax-exempt equity, fixed interest, 
property and mixed funds and of all the main market 
indices. Detailsof each fund's investment policy, 
charges and portfolio breakdown are included in a 
separate ‘profile* for each fund. 

The latest copy of the Survey, updated to 31st 
December 1 977, is now available at a cost of £60 from 
Harris Graham & Partners, 

30 Queen Anne’s Gate, London, SW1H 9AW 01 -839 6451 

If you are involved with a sea regaled pension fund, Harris Graham 
provides a tailor-made service which compares sour own fund'4 
performance with that oi similar pension lunds on an up^to-daie and 
consistent dssisi 

I l 


iT &iviA r 

More inflow 
into building 

Results -from three big budding 
societies confirm the evidence of 
large Increase in tbe inflow of 
funds during 1977. At Bristol and 
West, the biggest of them, gross 
receipts, rose by 51 per cent, 
during the year, to £288, 5m-, and 
the net Investment inflow of 
£113Jm.— boosted to the rune of 
some- £9m. by a transfer of 
engagements from the Swansea 
based South West Wales Building 
Society — showed a rise of almost 
92 per cent Net assets at the 
year-end, in consequence, showed 
l improvement of 30.0S per cent 
£569. 19m. 

Bristol and West has been 
quite happy to go flat out. for 
growth and to use it to build up 
liquidity— up from 25.99 per cent 
of assets to 31.27 per cent by the 
year-end. Partly because of the 
modest increase In house prices 
during tbe year,, and partly 
because borrowers were cautious 
in their requirements, the amount 
lent.'to housebuyers rose by only 
105 ■ per cent, to £100.fim.— 


52 CantMil EC3 WD 


WrtWta I b**. Offjj JJ-g- 

PortfoUo II Capital Otto- ]»■« 
• • - JHd 

Year to 30th September {£'000) 1 977 
Turnover 41,762 

Profit before tax 5i770 

Profit after tax 2/750 

Earnings per share 1 7 . 0 p 

Ordinary dividend (net) 5.74p 






* and profit before taction up^l^^ThecIrdinaivd^ 0 '^ 61 ^ ^ ^ 

maximum allowed. *ne ordinary dividend is the 

V continued subslantia^ [ncrease^nhan-elage of yea L has been the 
both Licensed Houses and Free Trade outlets dra . U0ht beer in ‘ 

remain considerably lower than our compe t ito° PnC8S 51111 

* A professional valuation of ourfreehold and | ra l f® 6, 

to continue to achieve growth. confident in our ability 

E. J. Thompson, Chairman - 

'-.A i:- 

V-- ■ 

;% ; : 



■■iy *w 

. iil'-JHI 

i ' * 

Financial limes Wednesday January 25 1978 


•»\ % 



Hamersley sells less 
but earns more 


PTTE lower shipments of and Compagnte Generate des an extraordinary gain of $A7m. 

ore and peUels of 33.1m. Matteres Nucleaircs (Cogema ) of from the sal c of its stake of 7.2m. 
es against 36.09m. tonnes in France which will meet 50 per shares in Thicss Holdings to Shell 
. the Rio Tlnto-Zlnc group’s cent, of the costs. The . Guinea Australia. An unchanged interim 
ralian Hamersley Holdings Government will provide 10 per of 3 cents (1-8p) is declared. M3M 
rts a 1977 not earnings figure cent., the newspaper Nihon Kcirai were 138p Jr London yesterday. 
AST .8m. (134. 02 m. ) compared Shimbun said. , 

S42.29m. in the previous thought that a confrait _ - . 

- A fine) dividend is declared w»U -te signed in March and that /.511T1 1)1211 COODPT 
cents (4.7pi which makes a lhe focus of the exploration 

•s total of 16 cents compared f? ort wU * be ^e eastern part of ell TIC 

11 cents toe 1976. the country. OUipill - SlipS 

m ore contracts with Japan. a l rea ^y been established . TA _. nnw l_ ‘ 

Tiajor customer for Australian ^ r f nil S e ^ lO lU-Vear 10W 

j^f 5, ££?„_ ^HsISLrslev hfs ever - uranium production in West GAMBIAN COPPER production 
Jd’fronTl^t Sl^Suetten Afrfca been centred on Niger l!«« year was the lowest for ten 
fclf ,22 and Gabon. years, according to preliminary 

the cxcitaoge rate for the litres from Roan ConsoKdaled 

. Mines (RC1VI) and Nchanga Con- 

Ajpon nrnfltc solidated. Copper Mines (NCCM), 

rViV.O.11 ptyills reports Michael Holman from 

nse sharolv ■ Company spokesman put RCM 

, ^ . - Jr J output at 250.000 tonnes and 

; far as the current years DURING 1977 net income' at- Alcan NCCM at 400,000 tonnes. The total 
>ok is concerned, shipments Aluminium, the Canadian group, of 650.000 tonnes is the lowest 

be dampened by the con- surged to $201 ,5m. i£i03.75m. j ' since 1966. when the output was 

mg uorld recession in the from $44m. in the previous year '623.000 tonnes. 

industry, particularly as far when smelter operations were set The 40 000 tonnes drop in RCM 
the Japanese and Western back by long strikes, John production from 1976’s 290,000 
•pean iron ore customers are Soganjch reports from Toronto. [ onne s seems mainly owing to the 
emed. -Difficulties in the Mr. N. V Davis the Alcan ehair- fact noted ^ ^ company’s last 
<et place are continuing/' man, stated: Whether the. Ifli < anuaI report that the electric 
Hamersley. but the company fate of profit will be sustained m f urnaC e at MufuJira, the com- 
also benefit from a full year J97S w "* depend on many factors, pany s largest smelting unit was 

the 10 n iron ore Price the jtat. nl the ™mmi4in n for the «« 

rases, .. world economy. How ever, our half of 1977 hetuusp of scheduled 

i balance; therefore, it seems PfWnt sales estimate for the first mn j n { cnance 
jnable to hope that Hamers- JJJJgJ the fourth- Zambia’s President 

nay he able to match its 1977 qi ^iS“ profi,, , m thjt ^ Dr. Kenneth Kaunda is reported as 

.rail an dollar against, that of 
U.S. Furthermore: the com- 
' will have enjoyed, in the 
nd half, benefits of higher 
»s negotiated for some of its 

ings in the current year. Any 1 " >l saying that some loss-making 

ssar -ss b zi 
as* h “ “■ pe ° p,c ' s Govera - 

^P^rSfreasid stodtptte SS^Son oflhe mShSte scleral on 

mi ore atwi pellets. conditions u as the announcement RCM and NCCM. both of which 

*“S * 2.6 per cent.-ownen 3 t the end of last week that Alcoa face severe financial difficulties as 

mc Rio tin to of Australia r ,f Australia had boosted its 1977 a result, of the sustained depres- 
s 34 per cenL of Hamersley. profits by nearly 53 per cent, over slop in prices: Earlier this month 
;cs of the last-named were 1976 to PA83,2in. (£3S.3m.). he pledged an unspecified produc- 

in London yesterday. . An increase is also expected tion cutback. 

from the Rio Tinto-Zlnc group’s Asked last December about 
Australian operator, 'Comafco, possible mine closures. Dr. 
when its figures' are announced Kaunda said that if other 
shortly. measures to restore the country's 

ailing economy “don’t support 
. nitc vrio ■ the mining Industry strongly 

joint venture of Japanese and irlllYl nALr"l tAK • . enough to keep it going, then, of I 

ich interests \vith the Govern- Australia’s MUl Holdings base- course, we might hove to dose 
t of Guinea is being set up metal group has made an un- some of the mines ; . . a very 
.•vplore possible uranium dt- audied net profit for the half- pain Till decision because it means 
ts in Guinea, according tu year to Decentber is or $A20.0Sm. thousands will be thrown out of 
tnese Press reports- ilU.SLnU compared with $AtB.4m. empioi-ment-" 

te parties involved are said j n the same period of the prv- A seven member commitec on 
Japan's Power Reactor and vious year.- The increase is stated cost-cutting in the industry 
tear Fuel Development Cor- to be the result of increased metal originally due to report to Dr. 

ilHin, which will provide 40 sales. Kaunda al the end of December, 

cent o. the undisclosed .cosls,. It is also stated ihar MB! made is at ill meeting 


£110,000 rise 


porters of fresh fruit and vege- _ »_ 

tables, Gtasa Glover Group re- BOARD MEETINGS 

ports turnover up by 26.7 per 

cent, to £24. 12m for the year to Wlowms i-ompsiuci have notified 

Sentemhpr SI) 1077 anri an aH- dates ' Qt Board m. i-iines io the Stock 

aepuaaoer Mi, J an aou an aa Bxrtantt*. Sn. h mc-unes are wm.iin 

*!5* J “ P 1 " 0 ®** from held tor the rerpchf ot L t>nsidenns dlrl- 

0-3.685 to £432,689- d^ a nd5. ' Official Jarjuaiioos are noi avail- 

At midway, when profits Stood Khviti^r UKid^nds concerned arts 

at £127.326 acainat £100.219 the inlertnia or finals nnd rt»e Kub-divinoos 

tRSStfr “ “ ,nly on ^ 

plus would comfortably exceed To-nav 

... Ausiin Sictl. Cantors 

They now say that current trad- Albert Fisher vor.-istnushnit Metal, 
ing is in line with expectations Final*— Bhin-iL-ti-p. rmoKiaBp. . Bniimuth. 

and in 1977-78 the group should £ dlnba, ^,:1? lf r nu,n Tru51 - »«« 


Earnings are shown to be i n tt r im*- FU ™ R “ dates 

ahead from 2.S261p to 3.6334p per Gaunt ihnwiandi jan » 

5p share and the dividend total Bain Properties jan. -s 

is lifted from l.Ip tD the maxi- 
murn permitted. l52S8p net with Armour .Trust 
a final payment of 0.9908p. 



Profit at a peak £10m: increased U.K. 
capital spending planned 

. ^ - Pfb. s 

AMoclalM: Fishcn,- F.>b. 3 





TraiUos profit 

Net ini urea received 

Prat before tax 









323, MS 

EitrsMjrd. credit 

Making .... 




t Paid. 

pnitt <P.» EnRlw^nnc 

.... Jnn. 26 
.... Fch. e 

Elson & 

Feedex on 
target in 
second half 



W in n is Bainbridge suitor 

'inn Industries has made an 
vd take-over bid for Bain- 
gc lingincering. whose shares 
suspended on Monday at 35p 
ling a further announcement, 
ns of the Winn offer are 45p 
per share, or U Winn shares 
p, down ip yesterday— for 
y ten Bainbridge. The oilers 
c Bainbridge at between 
000 and £6S4.0Q0. 

■e vocable acceptances have 
received from holders rep- 
iimg 41^ per cent, of the 
aL These holdings are undcr- 
( to include the 26.46 per 
stake bought by Barrow 
turn from Arbuthnot Latham 
ings in November, plus the 
ngs of the Bainbridge Board, 
r principal holders, including 
institutions, have indicated 
they intend to accept in res- 
of a further 103 per cent, 
e equity. 

nn, which made the approach, 
ds to carry un the business 
amhrkkc virtually as it is. 

No redundancies are envisaged, and distributor of prefabricated 
It Is exte-h-ted thal .ttoinbridge buildings. The main activity of! 
will fit well together wuh t-nmp- Bainbridge U die manufacture of 
ion Buildings, an existing Winn prefabricated housebuilding com- 
subsidlary, and a manufacturer poneuia. 

Lonrho taking over 
Trade winds Airways 

Tnutewinds Airways, a freight 
carrier operating mainly in Africa 
and the Middle East, is being 
taken over by Lonrho, the 
conglomerate with African 
interests which is run by Mr. Tiny 
Rowland and which last year 
made a string of acquisitions, 
chiefly in the U K. 

Tradcwinds, based at Gatwick. 
is at present owned as to some 
83 per cent, by Mr. Charles 
Hughesdon. the aviation 
enthusiast and in-surancc broker 

L .. r*’" : 


. j 

Negotiable Floating Rate U.S. Dollar 
Certificates of Deposit 
Maturity date 26th January 1981 

In accordance with the provisions of lhe Certificates 
of Deposit notice is hereby given that for the initial 
six-month interest period from. 25th January J97S to 
25th July 1978 the Certificates wU carry an Interest 
? c Kate of 8% per annum. 

v Agent Bank 

Hill Samuel & Co. Limited, 








to . 















fir before Tax 

•£ The profits for the half-year ended 30th 
ptember, 1977, show a 7£ increase over 
a corresponding period "in the previous 

As stated in the Annual Report for the 
ar ended 31st March, 1977, your -Company 
ntinues to ' experience a severe' trading 
mate and it would therefore be imprudent 
r me to forecast the results for the full 


-Heating and Plumbing Merchants 

who was, until Iasi year, a dcput>' 
chairman of Matthews Wright son I 

FYora 1970 until the mid-1970s, 
a 45 per cent. Blake in Tradewinds I 
was held by the Crown Agents.) 
who sold it under their policy of 
disposing of peripheral activities) 
as well as disengaging from [ 
secondary hanking and property. 

Tradcwinds operates six air- 
craft, two Roeins 707 320Cs and 
four CL 44D planes, all freight 
carriers. The company's annual 
turnover is thought to be in the 
region of Hnm. and its profits 
some £800.000. 

No comment was available from 
[.nnrhn yesterday as to the price 
nf ihr deal or the terms of 

Mr. Robert Duni**n. a Lnnrho| 
director, described the acquisition i 
as a natural for hl« croup, whose | 
own operations generate con- 
siderable quantities of enods for 

air carriage. “ TTte association of 
I.onrhn and Tradewinds can only 
be to the advnnlane of Trade- 
winds and its expansion." he said. 


Elswick-I tapper, ihr agricultural 
I'quiument. d’stxihulor. ha^ agrreri 
io .buy;B. H. Browu. a main dealer 
for International Harvester and 
Clans, for a consideration now 
worth more than the original 

Hie consider.^ jnn consist of 
2n». shares in ENw it-V: -Hopper 
which • have ■ risen in the slock 
market from 17 ;j each, when lhe 
terms , were KulisYanuaily agreed 
Inst November, to 2*J 1 p yesterday. 
The cable -of the- cotwiileraiinn has 
therefore improved tn £-=30.000. 
El<v Ick-Hoppev'.s shares rose m 
tote Deceitibi.'r after i» announced 
a joint, venture w ilh BP Nutrition. 

B. IL Bruwn nijcrates in New- 
castli;- uiwn Tyne and Alnwick. I 
Northumberland und is expected ( 
to combine writ with Klswick- ! 
Hopper's existing distributors in] 
Vnrkshirv and Xonjiumberland. 
Its net assets at November 3f»,| 
*977, were about £2!ti.«m0 and pre- 
tax profits for the year to that 
date amounted to iso.ona 


Skelchley has so'.d pS per cent 
of it# micrcvi in its Belgian v*ork- 
wcar rental siibsidiar>' Scrvibel 
SA to - MEtV A i Meehan is£hi- 
Wpbcrei Attrladi (imhllj of Wies 
bnden. The canisderatior was 
nominal' anil .-u-run-ements have 
been made f..r Sketch ley to be 
released from al, cnriiingcm 
liabilities in res|ieei of guanmtee.s 
given in sui.porl of bervibei s batsk 

■Sketch ley acquired Scrvibel ini 
1974 when market research indi- 
cated that the vorkwear rental 
market in Belgium was likely to 
grew significantly. Jn the event 
high unemployment in Belgium 
offset rhe expected growth. 

Sketchlcys wholly-owned dry 
cle.i!iihg. subsidiary in Eelgium 
tx-currontiy trading prolHably jnd 

is . uuatlwiwi by tile saie al 

At the annual meeting of Elson 
and nubbins. Mr. Eric Keeling, 
the chairman, said that in the 
first quarter or the current year 
„ . _ ...... the group achieved sales of 

* ^ Chants, the chairman £4.S7m: against £3.38m.. an 
S f T> F t? liex ’, anno u nc 6s that Mr. increase of 44 per cent, and pre- 
S. R. Kingsley has been appointed tax profits came to £565,000. 

^ -With the exception of the 

meni coSSTS wSJTSh “hieved at -the DIP sub- 

group looks set to achieve the 31 d , ary _lhe pattern of sales and 
much-improved second-half per- JUT ' i . ! L n,ficantl -'{ 

forxnance for 1977. which was fore- rep ° r,p ^J a ,he 

cast In the interim statement statement. As far .is DIP is 
During a period of intense com- concerned, priority is being given 
petition, the animal feed division l ? saies ., of Pr . em, f r heaters for 
has increased feed sales to a re- the southern hemisphere. Mr. 
cord 100,000 tonnes. Margins on ? eeIm ? “ id h *‘!f, V cry confi ' 
pigs have considerably improved ^. ncc ^ *»*« } v ‘ n *“ in 
and the engineering division has raa , rk .^ t . dun ? 5 March-June. 
continued to receive orders from l97 ? 3D * ! his envisaged diversifi- 
both the home and overseas mar- wtIon 01 heater sales will give a 
fcets, at an extremely satisfactory ITlor ® ““®st e nt turnover pattern 
level. in the future. 

“ We begin 197S in a far stronger Subject to unforeseen circum- 
position than was possible in the stances, be forecasted along with 
market conditions at this time 12 the increased sales, -a profit 
months ago." increase for the current year. 

Once again I am delighted to report that our group 
lias achieved a record profit for the year in spile of 
t&e uncertainty which has affected the chemical 
^sector generally during the period under review. 
Tike profit of £1 0.1 3m, before Taxation, was 28% • 
higher than last year. All divisions showed an 
improved profit, but the major growth came from 
theichemical side where pre-tax profits increased 
; by 29%. Chemicals now account for 75% of group 
promts as against 74% last year. This trend is 
perhaps to be expected as the larger part of our 
capi&l investment has been in fhis field. 

' Capital Investment 

We bdfieve that in an industry characterised by 
technd logical change continued investment in the 
most nibdem plant is essential if future growth is io 
be achieved. Last year we spenta total of £5.7Sm of 
which £ 41.91 m was in the chemical companies. 

In the present year we are planning a capital 
expendiiireof £7.4m in the United Kingdom of 
which, f^&mwilf be in chemical plant and 
supponirl^Lservices. These figures show that in 
spite of tiielpresent pessimism about general 
market coiVditions for 1 978 we have confidence in 
ourfutureftj\jtd believe that the United Kingdom 
continues^oLbe the right place for our major 
expansion. . . 

Reduced Ejcw rowings 
Additional throwing for capital expenditure for 
1 975/77 proofed to be unnecessary. In fact the 
group red ucscf its net overall borrowings from 
£3.05mto £2&3m. 

Futu re'Prosii ects 

World trade rei^ains depressed and demand 

from our large markets in Western Europe and the 
United States is less than at this time last year. In 
addition the improvement in sterling will depress 
the trading profit from our exports. On the other 
hand we continue to improve our efficiency and 
increase the productive capacity of our plants and 
the range of our products, and the strengthening of 
sterling will enableus to buy more cheaply those 
of our raw materials which come from abroad. 

My view is that if the present trends continue we 
shall have difficulty in reaching last year’s profit, 
but when the improvement in the world's economia 
well-being eventually comes we shall be in a 
position to produce better results than any yet 

Tear ended 30th September 







7.294 5,657 

669 599 

7532 % ni8 . 5a0B %)« 

Group profit before taxation . 

Earnings for ordinary 


Total ordinary dividend 

( 20 . 

Investment in nen capital 


Export sates of the U.K. companies 
Earnings - pence per share 

fBasBd nn 6.447.107 ordinary shares in issue at the baianca 
sheet date. 

These extracts are from the 1977 Annual Report 
and Statement by the Chairman. 

Dr. T. Harrington. The full version can be 
obtained from the Secretary. 

Castieford. West Yorkshire WF102JT. 




113 | 





chemicA&manufacturers HICKSON and timber preservers 

At Watford's, our success has been built on 
the quality of our service. 

And one of fhe ways we make sure our 
service stays ahead of the competition, is by con- 
tinually extending it 

So although we started out as a shipping 
company pure and simple, nowadays we deal with 
every aspect of freight and cargo handling on land 
and sea. 

From initial purchasings through packing, 
warehousing^ and delivery to any part of the world. 

Success like ours, of course, often breeds 
even greater success. 

And in our case it has recently enabled us 

to acquire anotheV group of companies, with a pretty 
good record in the ir own right. 

In the past five years the Langville Group of 
Companies have es'-tablished themselves as a major 
warehousing and distribution organisation in the UK. 

Now that t&ey re part of Watford Maritime 
it means we've got ai whole lot more warehousing 
capacity, a vastly in cc eased export packing facility 
and a superb extensic ‘n to our transport fleet. 

So well be su pplying a much more 
comprehensive service, even more efficiently. 

Which means A well not only be covering more 
miles on our clients' bel ialf r but they'll be getting 
much more mileage out of us. 


St. May Axe House. St. Mary Axe, LONDON EC3 AS S3. 

Telephone: 01-253 5030 Telex: 685 904. 




to f he holders of 


(now General Mills, Inc.) • 

8% Guaranteed Debentures Due 1986 

NOTICE IS HEREBY GIVEN THAT pursuant to the provisions of the Indenture 
dated as o£ March 1, 1971 among General Mills Finance N.Y., General Kills, Ine, as- 
Guarantor, and Bankers .Trust Company, as Trustee, as supplemented by a First Supple- 
mental Indenture dated as of May 1 m, 1U74, $SU0,000 principal amount of the 8 % Guav- 
av.ued Debentures Due ll*S6 have been selected for redemption on March 1, 1978 through 
th operation of the mandatory Sinking Fund. An additional $1,000,000 principal amount 
of the Debentures have been selected for redemption through the operation of the optional 
Sinking Fond. The numbers of the Debentures selected for redemption are as follows: 

fGreenall Whitley 
sales well ahead 

Financial Times Wednesday January 25 1978 

6A1Q9 1120 218? 3236 4746 6636 6647 7769 8705 

110 1131 £203 3264 4769 6647 6668 7792 8712 

111 1156 £207 3255 4760 5649 66S3 7305 8733 

119 1157 2211 3271 4767 5653 6634 7316 8741 

120 1173 2217 3339 4771 5M2 6697 7854 8743 
125 1176 2219 3346 4774 6663 6711 7859 6761 

137 1183 253 3363 4775 5665 6712 7880 8769 

138 1210 2254 3369 4776 5670 6726 7912 8795 

149 1211 £263 3372 4793 5683 6739 7929 8793 

153 1215 2235 3375 480S 5693 6758 7942 8321 

165 1220 £312 3377 4815 5698 67G4 7943 8823 

174 1222 2315 3378 4317 5703 6768 7969 8856 

180 1228 2330 3379 4827 5708' G797 7975 8837 

190 1263 2335 3424 4831 5714 6800 7992 8863 

207 1271 2348 3442 4839 5722 6307 7998 3S83 

208 1272 2355 3539 4840 5729 6821 8013 8903 

263 1277 2357 3552 4645 6740 6825 8018 8921 

£78 1278 2358 3655 4856 5750 6835 8026 8923' 

279 1297 £359 3558 4862 5752 6855 8029 8924 

293 1300 2392 3573 4864 5768 6861 8030 8946 

29S 1310 £404 3574 4879 5773 6863 8036 8966 

321 1329 2405 3575 4S80 5776 6887 8056 8S67 

325 1333 £412 3722 4889 5785 6908 8069 8932 

343 1342 2423 3757 4891 5787 6936 8076 8996 

9704 10957 12001 13108 14177 16202 16607 17824 18856 
9732 10960 12005 13109 14199 15204 16619 17641 186S8 
9741 10990 12015 13120 14204 15205 16670 17642 18684 
9766 11007 12037 18121 14227 15207 16704 17846 18691 

9792 11011 12038 13128 14229 16211 16794 17665 18707 ' 

9793 11033 12041 13148 14246 15221 16859 17660 18722 

9801 11051 12075 13159 14248 15223 16S93 17669 18723 

9812 1105+ 12093 13169 14251 15227 16933 17670 18746 

9813 11055 12096 13189 1425+ 15228 16959 17677 18739 

9318 11057 12120 13205 1426+ 15Z36 17003 17680 18768 

9328 11060 12127 13208 14270 15242 17004 17685 18783 

9839 11091 12128 13209 14280 15244 17013 17707 18797 

9S44 11101 12133 13228 14299 15245 17015 17709 18814 

9856 11107 12181 13234 14303 15249 17016 17716 18815* 

9860 11118 12184 13284 14811 15260 17022 17740 18842! 

9863 11126 12203 13266 14316 15267 17029 1774S 1B84S 

9864 11157 12208 13273 14336 1 5268 17030 17767 18372. 

9897 111+5 12212 13Z81 14366 15271 17035 17767 18889; 

9 SOT 11152 12220 13285 14384 15232 17043 17784 13902 

9911 11167 122+5 13295 14386 15284 17046 17793 J89T8 

9926 11169 12267 13309 14387 15285 17051 17795 1893 9 

9945 11171 12269 13331 144Z7 15288 17063 17797 189f >9 

! SALES OF GreenaK Whitley in 
teie current year are well ahead 
of last year and could he further 
helped by an increase in con- 
i snarer spending if {he Govern* 
('meat's planned tax cuts come 
^through and inflation is kept 
[trader control, Mr. Christopher 
pfetton, chahman t says in his 
statement with accounts. 

Mr. Hatton is optimistic that 
the company will Increase its mar* 
ket share of beer sales both in 
ks own region and elsewhere. 

There is no doubt that its 
investment in . improving plant, 
the rebuilding of public bouses 
and the acqiMsltioa and .budding 
of n«w fabuses >es showing through 
to increase earnings, he says. 

8962 11306 12285 13334 14431 1B289 17056 17800 189T/6 

9992 11307 12295 13335 14432 15297 17058 17825 189-88 

367 1349 £433 3753 4895 S7S7 6945 8082 9000 10004 11308 12296 13360 14433 16302 17060 17828 196 28 

368 1370 2434 3762 4915 5801 6959 8090 9002 10050 11318 12313 13361 14461 15307 17063 17833 19C.09 

337 1433 2453 3764 4921 5808 6970 8092 9003 10059 11345 1233+ 13375 14462 1 5321 17068 17840 1VJ39 

406 1434 2456 3780 4922 5B09 6936 8103 9004 10068 11356 12340 13408 '14464 15324 17078 17861 13 040 

4S4 1445 2459 37S8 4927 S826 6994 3115 9009 10095 11357 12341 13409 14466 15827 17079 17862 IS '057 

609 1449 2461 3794 4929 6827 6995 8129 9012 10103 11358 12346 13435 14472 15338 1 7083 1787+ HOT 

617 1454 2491 3799 4935 5830 7013 8146 9016 10120 11380 12356 13460 14473 15350 17083 17881 If J07+ 

561 1459 2492 3804 4954 5840 7021 8149 903S 10127 11412 1237Q 13458 14477 15351 17096- 17883 * 9101 

562 1467 2499 3809 4964 585+ 7028 8160 9039 10133 11425 1237$ 1346+ 14498 15355 17103 17908 * 910+ 

573 1482 2513 3811 4965 5856 7033 8169 9040 10146 11439 12386 13495 14522 1 6362 17103 17909 1J911D 

68+ 1542 2517 3824 4969 5857 7037 8170 9042 10147 11444 12400 13497 14525 15S64 17106 17914 - 19119 

587 1554 £525 3S54 4988 5865 7059 3181 9046 10155 11448 12407 13498 14528 15366 17110 17920,-19132 

588 1555 2523 3902 4990 6871 7060 8198 9056 10168 11467 12409 13617 14556 15368 17118 17923 1914+ 

589 1565 2545 3916 5007 5876 7063 8209 9063 10169 11473 12411 13523 14557 15373 17143 17932 

696 1586 2549 3944 5011 5910 7068 8212 9065 10192 11474 12420 13551 14558 15386 17145 1 7938; 

597 1593 2554 3945 5020 5913 7090 8224 9093 10224 11483 12436 13556 14561 15387 17146 17933 

598 1597 2555 4203 5021 5919 7096 8227 9102 10239 11494 12441 13568 14562 15392 17147 17941 

613 1598 2570 4219 5022 5940 7131 8244 9112 10245 11497 12443 13598 14590 15393 17169 179+6 ■ 

615 1601 2587 4229 6030 5956 7140 8246 9115 10259 11499 12462 13600 14597 15396 17177 1794f i 19208 

636 1610 £539 4245 5041 5957 7142 WWW 9123 10260 11528 12463 13601 1460+ 15405 17189 17991 19238 

647 161S 2654 42+9 5050 5558 7172 8259 9136 10271 11531 12473 13665 14607 15412 17194 17SHJZ 19239 





669 1629 2660 4252 5060 5956 7173 8267 9137 10277 11542 12481 13697 14608 15413 17201 17S(5+ 19248 


'18143 19370 
’18168 19383 
18170 19396 
18183 1940+ 
18200 19407 

687 1 638 268G 4275 5067 5969 7179 8284 9146 10278 1154+ 12432 13701 14609 15415 17206 17S792 19254 
638 1661 2593 4288 5063 5974 7160 8285 9150 10280 11545 12501 13702 14611 15416 1721+ 179 94 19256 

696 1662 2695 4269 5084 5983 7133 8293 9163 10304 11560 12504 13703 14613 15417 17225 175 98 19257 

697 1675 274+ 4291 5092 5991 7220 8301 9164 10320 11580 12513 13709 14614 15443 17231 17* *99 19285 

698 1680 2795 4300 5099 6001 7228 8311 9170 10338 11591 12539 13732 14621 15446 1723+ 18036 19304 

718 168+ 2797 4321 5102 6003 7239 8321 9188 1036+ 11592 12541 13733 14623 15450 17235 18 048 19308 

733 1711 2329 4326 5119 6009 7241 8324 9192 10371 11603 125S9 13742 14647 1 5461 17237 IS .056 19323 

741 1716 2830 4327 5121 6039 7341 8341 9194 10361 11621 12570 13789 14664 15463 17240 11 1062 1933+ 

754 1741 2837 4345 512£ 6059 7348 8344 9199 1039+ 11622 12583 13790 14675 13464 17243 If- 3076 1938+ 

755 1743 £847 4355 5126 6060 7359 8357 9260 10S95 11624 12685 13792 14695 15468 17267 * 8089 19337 

765 1746 2E49 4357 5140 6069 7372 8358 9296 10409 11646 12589 13812 14710 15471 17280 * 8111 19351 
779 1764 2866 4368 5145 6073 7378 8361 9302 10427 116S2 12605 13823 14713 15483 17290 1,8116 19357 

733 1793 2368 4369 5147 6077 7379 8365 9309 1 0428 11665 12613 13330 14726 15485 17293 -18135 1936+ 

786 1801 2874 4372 5215 6081 7380 8384 9320 10430 11666 12625 13843 14773 15499 17306 
803 1804 2879 4377 5216 6104 7398 838S 9324 1 0471 11668 12630 13355 14778 15501 17308 
an 1305 2836 4581 5218 6116 7399 8402 9326 10478 11670 1263+ 13856 14780 15502 17311 
822 1813 2R6S 4405 5234 6118 7400 8405 9333 10491 11684 12652 13864 14781- 15503 17312 
S£5 1815 2899 4409 5239 6119 7411 8403 9351 10492 11688 12667 13875 14783 1550+ 17313 

850 1819 2906 4500 5249 6124 7422 8409 9355 10496 11708 12678 13883 14799 15515 17314; 18218 19437 

851 1K2 2909 4506 5252 6130 7423 8420 9364 10527 11710 126S0 13890 14816 1 5516 17315 18230 19453 

853 1840 2919 4507 5253 6153 7429 8423 9366 10533 11727 12699 139C3 14849 15541 1731S 18244 19460 
£60 1867 2924 4513 5255 6163 7438 8437 9367 10534 11732 12708 13913 14364 15547 17335 18246 19467 
867 1672 2927 4520 5271 6174 7444 8448 9381 10591 11735 12722 13921 14365 15550 17355 - 18247 19483 

890 1900 £945 4527 5286 6176 7454 8448 9401 10603 11736 12733 13923 14889 15551 1735* I 18259 19496 

891 1921 2958 4538 5293 61S7 7463 8460 9402 1061+ 11738 12735 13927 14907 15552 173? i 18268 19498 

P01 1934 2967 4539 5294 6197 7473 8466 9404 1 0615 11809 12738 13932 14977 15575 1736 0 18292 19S15 

905 1937 2956 4543 5304 6211 7478 8482 9414 10663 11840 12769 13962 14980 15581 1737 2 1829+ 19525 

90S 1940 29S7 4544 5312 6229 7500 8485 9417 10675 11841 12783 13966 14999 16593 1731 11 18295 19534 

909 1 941 2992 4547 5313 6£54 750S 8490 9419 10678 11842 12785 13973 15000 15629 1757 )3 18296 19535 

924 1956 3001 4565 53£4 6260 7513 8537 9445 10680 11855 12736 13975 15002 1 5653 174 00 18297 19556 

929 1957 3002 4570 5327 6265 7517 8538 9447 10681 11863 12787 13995 15014 15668 174 01 18300 19561 

930 1958 3003 4584 5344 6281 7526 8539 9468 10691 11864 12803 14017 15017 15670 17* 102 18306 19571 

931 1973 3004 4586 5356 6292 7544 8540 9469 10700 11867 1280+ 14028 15018 15703 IS 409 18319 19583. 

933 1974 3025 +595 5357 6294 7545 8545 9473 10719 11882 12805 14027 15024 1 5721 17 .415 18331 1958S 

945 1975 3036 4596 5381 6318 7566 8557 9493 10726 11884 12810 14029 15049 15736 17 418 18343 19610 

961 1992 2044 4607 5384 6328 7577 8576 9516 10728 11885 12813 14030 15053 16044. 17/458 18344 19612 
979 2007 30S4 4615 5387 6356 7579 8587 9527 10740 11836 12820 14031 1505+ 16060 * 7459 18356 19840 

985 2038 3085 4621 5395 6358 7597 8595 9534 10744 11898 12842 14046 15073 16068 1.7461 18366 19642 

986 2043 3090 4624 5399 6373 7600 8597 9538 10745 1190S 12848 14058 15076 16097 ‘17465 18363 19655 

1015 £064 3095 4E28 5400 6376 7515 8598 9554 10769 11920 12866 14059 15079 16137 '17466 18883 19669 

1016 2065 3129 4630 5418 6390 7622 3601 9556 10777 11921 12868 14060 15092 16144 '17495 18392 19671 

1027 2068 3153 4631 5425 6398 7625 8613 9557-1081+ 11933 12894 14094 15100 18180 17508 18403 19680 
1026 2069 3154 4646 5435 6403 7638 8618 9585 10830 11934 12904 14103 15102 16181 

1017 2039 3155 4662 5436 6410 7644 8627 9586 10851 11951 12917 14107 15103 16182 

1040 2090 3157 4674 5443 6516 7861 8628 9597 10357 11954 12921 14112 15106 1B19S 

1041 £091 3171 4676 5446 6522 7662 8635 9901 10864 11956 12925 14119 16119 16209 

1059 2094 3192 4685 5456 6537 7665 S643 9608 10372 11960 12935 14124 15152 16210 

1050 2154 3193 4687 5531 6555 7686 8661 9638 10874 11963 12943 14157 15154 16211, 

1081 2113 3194 4690 5582 6557 7693 8662 9639 10900 11966 12971 14158 15162 16216 » 

1090 2125 3201 4692 55+4 6565 7709 8663 9658 10901 11973 13033 14163 15166 16272 1759+ 18460 1987+ 

1104 2148 3210 4709 5595 6525 7721 8670 9659 1092S 11995 13040 1+164 15176 163t 6 17595 1B462 19883 

1112 2164 3211 4719 5618 6611 7729 8683 9660 10942 11998 13042 14168 151B2 163f £ 17595 18628 198+8 

1751+ 18410 19785 
17536 18417 19790 
17546 18430 197S1 
17554 18435 19834 
17566 18437 19835 
17672 18460 19852 
17593 18462 19867 

1113 2176 3229 4732 5620 6612 7755 8694 9668 10944 11999 13078 14173 15190 16*7 ’1 17618 18635 1990+ 
1119 2178 3235 +735 5621 6626 7758 8702 96S3 10945 12000 13107 14174 15193 165 7+ 17620 18640 19916 

Debentures herein designated for redemption will become due and payable at 100% 
. ” " * ~ * Trust C 

principal amount thereof in IT. S. Dollars at the office of Banker a 'Trust Company, 
Corporate Trust Division. One Bankers Trust Plaza, New York, Net r York 10006 or at 
the option of the holder, at the main office of Citibank. N.A. in Frank! .urt/Main, the main 
office r.f Eanrjue de Paris et ..les Paya-Bas in Paris and the main offic as of its affiliates in 
Amsterdam. Brussels and Luxembourg, and the main office of Banca C ommerciale Italiana 
in Milan, upon presentation and surrender of said Debentures accomp .anied by all coupons 
aplii-rtaining thereto maturing after March 1, 1973. Payment outaidr : New York City will 

be made by check drawn on a dollar account, or by transfer to a dolls j account maintained 
by the payee, with a bank in New York City. Coupons maturing M arch 1, 1978 or prior 
1h< ‘ * ' ' " ‘ " " " 

hereto should be detached and presented for payment in the usual: manner. On and after 
March 1, 1973, interest on the Debentures herein designated for r edemption shall cease 
to accrue. 

. Debentures selected for redemption on March 1, 1977 which ha ve not been presented 
lor payment are: 

N3536 3557 3767 4332 4335 4412 7534 11955 16513 17249 

DATED: January 19, 397S. 


(noi v General Mills, Inc.) 

by Bankers Trust Company, Trustee 

loan facility -was taken up from 
Its bankers in November. 

Contracted and authorised 
capital commitments for the 
current year total £82ta. Last 
year £9 flam, -was spent on capita! 

Meeting, Daresbiury, near 
Warrington, February 16 at noon, 

Green Grp. 
jumps to 

In the year ended on Sep tern- INCLUDING A surplus of £347,282 
her 30, 1977 profit ■rose from on the sale of " investments 
£8.Bflnu - to £10-18 ol, with sales compared with a £27.380 deficit, 
volume in ail dmsioas increasing pre-tax profits of e rnams 
despite the total UJS.. market for proprietors Green Group jumped 
beer sales declining:: from £341^48 to a record £776*56 

Second half results were for the year to October 31, 1977. 
affected by poor -summer weather. Trading profits for the year 
a ebree-monbh delay in a price improved from £241.065 
increase, delays in -plant start-up £303,903, while investment and 
and an industrial dispute which rental income was little changed 
affected tts ability to. supply keg at £125,771 (£127.564). Profits 


Mr. Hatton says' -the group -is 
continuing to make inroads into 
free trade dubs outs&de its tradi- 
tional trading areas end its sales 
force has been reorganised and 

were subject to tax of £281211 
(£189,686) leaving net surplus up 
from £151^63 to £495,745. 

Stated earnings per lOp share 
are hoisted to 2l.4p (6.46p) and a 
second interim of 3p steps up the 

enlarged- GreemtM Whitley is dividend total from '2.75p to 425p 
looking forward -to ifdrther growth net 

in this field.. Daring the year, the company 

Provided duties on wines end realised a number of yMctny»fl ts 
spirits remain stable and a credit at a substantial profit. In addi- 
pertod is granted by toe Chancel- lion, by accepting. ’the cash offer 
lor, re newed expansion is in the take-over of • Mills and 
expected at G. and 3. Greonaffl, Allen International, the company 
while safes of Cumbria Sofit made a profit of £160.000. 

Drinks Should also. grow. The acquisition of- Capitol and 

Nine public houses were opened Allied Theatres was not : coin- 
last year and by December this pleted until mid-July 1977. with 
year a further 10-are expected to the result'that trading profit is 
be opened. AU sections of toe only marginally influenced by that 
recently acquired Stanney+amts acquisition, the directors add. 
Group are making worthwhile Regarding the position of the 
contributions to profit Dublin cinemas, toe Regent has 

In 1976 -ji the group's cash 
position changed from £ 2 . 59m. in 
hand to a£A24ni. overdraft and 
with sales expansion and a change 
in toe mix of business expected 
In the future a ffinu, seven-year 

contributed to profits, whereas 
the Green has .changed from 
profit to a loss situation. The 
heavy losses incurred by the 
Ambassador and the Academy 
cinemas have been halted. 

Stenhouse considering 
subsidiary flotation 

THE PROSPECT of Stenhouse an' Increase in the dividends de- 
Holdings floating off its subsidiary dared by Reed. 

Stenhouse Industries has again Mr. Boyd is retiring as chairman 
been raised. after the AGM and will be re- 

Mr. Gavin Boyd, chairman, says Placed by Mr. John G. Step house, 
in his annual statement that chairman of .Scottish Western 
although directors are not yet Trust Holdings, which owns 24 
ready to announce details of such Per .cent, of Stenhouse shares, 
a move, toe Board has the matter Meeting, Glasgow, February 17 
under constant surveillance. at noon. 

In the year to September 30, 

1977, Stenhouse Industries in- * | ' > j 

creased its contribution from A|])3l?3mfirfn 
£1.52m. to a record £2.03m. Share- aiuwifettUiaivu 

holders have been sent a copy of 

the Stenhouse Industries annual 
report and accounts.. 

The company secretary, Mr. 
W. G. Gardner, said yesterday, 
“Some considerable thought is 
being given to this development 
but nothing is imminent. No 
date has been planned.'’ 

No announcement looks likely 
before May as there is a capital 

in profit 

Amalgamated Distilled Products 
is, back In profit with £87,650 for 
the half year to September 30, 
1977, following a first half loss of 
£25,917. last year and a full year 

gains liability which could still be l oss o£ $22,145. 

Incurred under the terms of re- Mr. Ellis Goodman, the chair- 
construction six years ago. man, says the directors are con- 

Stenhouse is considering what fident that the improvement in 
room it has for dividend trading and profit performance 
manoeuvre under any further re- will be maintained. Shareholders 
construction, “but there is a lot are to receive an interim dividend 
of work that has to be done yet," of 0-5p net per l0p share. Last 
Mr. Gardner said. year. there was a single final pay- 

Tbtal profits of Stenhouse meat of 0.25 p. 

Holdings were £lO.02ra. (£7. 42m.) H aU year 

last year, with the bulk stemming 
from its 5424 per cent interest 
in Reed Shaw Osier, Insurance 
brokers, of Canada. Its name is 


three new 

resented in 142 offices. Expansion 
continues !□ almost all operating 
countries, but particularly in the 
U.S. wbere suitable acquisitions 
continue to be sought 
Mr. Boyd says Indications are 


1 OT 6 

. £ 


Turnover ... 

8 , 633.183 


Trading profit 



Investment Innntns „ . 

. 2,608 


Bank Interest 



Loan stock lm. — 

38 . art 


fixtra-onL deMr* ...... 

3 . 9 W 


Profit before tax 

. 67 - 66 S 

t 25 .W 7 




Interim dlvMend - 





125 . 017 ' 

• DEscotmr on loan to former subsidiary 
Prepayable 1HU settled for cask, t Loss. 

Mr. . Goodman says scotch 
whisky operations have shown a 
considerable improvement with 

that Canadian dividend restraint tiie distillery operating at full 
will be eased in 1973. and Sten- capacity, and a return to profit- 
house looks Forward hopefully to able trading In blending and 

bottling at Grangemouth. Scotch 

7 nis announcement is neither an offer lo sell nor a t ;oficilalion of an offer to buy any of these securities. 
The offering is made! only by the Prospectus. 

El Paso Natural Gas Company 

3,000,000 Depo sitary Preferred Shares. 

each reprt asenting % share of 

9.40% Cumulative Preferred Stock, Series of 1978 

Price •• $25 per Share 

White, Weld & Co. 


Bache Halsey Stuart Shields 


Dillon. Read & Co. Inc. 

Thf .■ First Boston Corporation 

Blyth Eastman Dillon & Co. 


Goldman, Sachs & Co* 

E. F. Hutton & Company Inc. 

Lazard Freres & Co. 

] Jrexel Burnham Lambert 


Kidder, Peabody & Co. 


Lehman Brothers Kuhn Loeb Merrill.' Lynch, Pierce, Fenner & Smith Paine, Webber, Jackson & Curtis 

Iniwparoird Incorporated Incorporated 

Salomon Brothers Smith* Barney, Harris Upham & Co. Warburg Paribas Becker 


Shearson Hayden Stone Inc. 

In cot perated 

1J ean Witter Reynolds Inc. 

Wertheim & Co.. Inc. 

ABD Securities Corporation B ;2 sle Securities Corporation EuroPartners Securities Corporation 

New Court Securities Corporation 

Robert Fleming K1 einwort Benson 

In corpora led la corpora led 

Scandinavian Securities Corporation SoGen-Swiss In terna tional Corporation UBS-DB Corporation 

Januaiv 11,1978 

whisky- exports have been very 
buoyant and. total value is now 
expected to reach" S 2 mi for the 
year against £l- 2 m. 

He reports that sales of the 
group's Old Court, Fraser 
McDonald and Scotia Hayale 
brands have made substantial pro- 
gress in many leading markets 
and that while costs have been 
increasing every effort Is being 
made to improve margins by price 
increases whenever possible and 
the recent Industry-recommended 
price rises win be of benefit 

While some currency losses will 
be incurred in the current she 
months on cased sales to the U.S., 
they are not expected to be too 


Bank of England Minimum . 

Lending Rate 6} per cent. 

(since January 6, 1978) 
Short-term fixed period interest 
rates were fairly steady in the 
London money market yesterday, 
and discount nouses buying rates 
for three-month Treasury bills 
continued to point towards a 
possible cut of i per cent .to 6} 
per cent in Bank of England 
Minimum Lending Rate at toe 
Treasury bill tender on Friday. 

Whether or not there is a fall 
in. MLR . will rest with the 
authorities, and although the Bank 
of England lent funds overnight 
to the market yesterday this was 

not ' regarded as a significant 
guide to official policy. A heavy 
shortage of funds is expected 
today however, which should 
present ample opportunity to give 
a signal on .interest rates if 

Yesterday’s extremely large 
shortage was relieved by moderate 
purchases of Treasury bills from 

the houses, and small purchases 
of local authority bills. The 
authorities also lent a moderate 
amount, overnight to nine of ten 
houses, at Minimum Lending Rate 
of per cent 

The amount dr help was prob* 
ably insufficient to take out the 

full shortage however, and this 
coupled with a day of heavy tax 
payments is expected to create 
difficult conditions to-day. * 

Very substantial- revenue pay- 
ments were a major factor behind 
yesterday's shortage, and the 
market was also faced with a rise 
in the note circulation. On the 
other hand bonks carried, forward 
surplus balances, and net matur- 
ing Treasury bills were in the 
market's favour. 

Discount houses paid 6-6$ per 
cent, for secured call loans 
throughout, but. interbank over- 
night rates touched 1W7 per cent, 
in toe afternoon, before closing 
at around 10 per ccnL^; . . 

Jan. 24 

of deposits 


- ' Local 

Local Auth 













Bills + 





Fine Trade 

tails* — 

7 days or 

7 dajt notice... 
On* month-... 
Two months... 
Three months. 
Six months.... 

Mine month 

One year 

Two yeara 







61* 61s 




64|-6Tg r 


1 +6I« 

’-.'flJ* ' 

. 6V 



- 67a-7 




714 -6*4 



















6rSr - 



- ’* -**■'“* 
S3, 1 


6i a -6.', 


Local authorities nod ananas fawner seven toys- notice, otfaera seven days' *xe«. 
rate nominally three years Mi pec wnu. War rear* W-iM per.eenLr five rears io>i« w* 4 Ban*. am rates in lawo 

aisT buying rates for prime' paper. BwW me' for "four-month faanJts bills SJIh-4 per cenM r °?7' OW ^!? ’~nf 
aSShSmT sriSwrale Triwwy MW 5*a-»i32 Pw cent.; cwwnooth su n pot » 

ban* Mils Per cent.: two-montb 5l.i6-6.Pcr cent., and 

saxs-oHu per cent. Appraiiuule seBtog rate for one-month bank Mils 6lvs-6i per 

Rates fnnmmat bv the Finance Houses Association) Si per cent, tram January v.kwv. ctcarmo 

s;s» »> » 

sms: Average tender rates of -discount 5.77*7 per cent. 

To the Holders of 



(National Hydrocarbons Authority) 
ey 2 % Sinking Fund Debentures due September 1, 1981 

NOTICE IS HER EBY GIVEN that, pursuant to the provisions of the Sinking Fond for lie Debenture? oft ho 

above-described issue, Moreau Guaranty Trust Company of New York, ns Fiscal Agent, has selected by lot fnr 
978 at the principal amount thereof 51 ,102,000 principal amount of said Debentures 

redemption on March 1, 1 
hearing the following serial numbers: 













































3597 ■ 







4055 SlOt 
4063 5104 
4067 5113 
4074 5118 
4080 5119 
4103 5144 
4112 5163 
4114 5197 
4129 5300 
4134 5202 
4145 5204 
4147 5221 
4196 5224 
4211 5251 
4213 5293 
4229 5304 
4238 5325 

4238 5333 

4239 5340 
4243 3357 
4275 5376 
4291 5384 
4405 5385 

4416 5404 

4417 5415 
4422 5420 
4433 5428 
4435 5438 
4438 5443 
4503 5462 

4509 5488 

4510 5492 
4559 5501 
4728 5503 
4751 5518 
4780 5542 
4762 5561 

4769 5578 

4770 5801 
4785 5610 
4788 5620 
4798 5624 
4818 5631 
4841 5633 

4355 5647 

4882 5650 
4868 5884 
4881 5897 
4908 5698 
4911 5729- 
4919 5738 
4939 5743 
4949 5773 
4963 5780 
4074 5802 
5004 5803 
5022 5832 
5024 5834 
5042 5857 
5090 5859 
3083 5862 
5084 5871 
5071 5885 
5079 S886 
5097 5907 

5945 8606 

5947 6844 

5948 8652 
5973 6670 
5985 6676 
5999 6877 
6021 - 6890 
0023 6714 
6024 8718 
6045 6738 
6060 .8739 
6079 6758 
8081 6780 
8109 8790 
6125 6793 
6145 8810 
6147 8822 
6162 6852 
6169 6854 
6185 6862 
6189 6868 
6194 6883 
.6195 6891 
6200 6398 
6234 6905 
6238 8808 
6248 6919 
6345 8932 
6251 6941 
8232 8966 
8254 6972 
6355 6977 
8273 8987 

6292 7010 

6293 7013 
6298 7027 
6302 7034 
8325 7041 
8328 7058 
6342 7072 
8343 7079 
6355 7067 
6368 7094 
6375 7103 

6378 7107 

8387 7108 
8417 7109 
6432 7116 

6438 7121 

6439 7122 
6445 7124 
6450 7152 

6479 7160 

6480 7167 
6493. 7187 
6497 7192 
8528 7195 
8538 7196 
6545 7399 
6555 7209 
6559 7219 

6572 7223 

6573 7244 

6578 7257 
6585 7269 

7284 7870 8520 
7288 7882 6525 
7290 7906 8529 
7299 7924 8530 
7329 7926 8556 
7338 7931 8557 
7344 7932 8584 
7351 7936 8597 
7357 7943 8608 
7360 7957 8622 
7363 7905 8020 
7391 7987 8627 
7397.7993 8629 
7405 7994 8646 
7410 8030 8647 
7413 8031 8699 
7415 8032. 8724 
7417 8044 8739 
7434 8048 8730 
7442 8056 8733 
7446 8064 8741 
7455 8066 8748 
7465 8083 8777 
7496 8112 8782 

7498 8121 8785 

7499 8141 8796 
7507 8142 8797 
7518 8144 8800 
7522 8145 8B15 
7540 5151 8856 
7545. 8182 8857 
7549 8185 8861 

7578 8168 -8868- 

7579 8188 8884 
7594 8187 8802 
7598 BIOS 8908 
7610 8215 8910 
7821. 8223 8931 
7822 8224 8M7 
7637 8340' 8949 
7649' 8342 8953 
7657 8281 8980 
7668 8297 8993 
7674 8298 8997 

7879 8304 8998 

7682 8332 9023 
7688 8344 902S 
7691 8346 9030 
7718 8350 9031 
7725 8356 9833 
7744 8357 9051 

7752 8364 9076 

7753 8307 9068 
7763 8375 9089 
7788 8393 9091 
7771 8397-9123 
.7773 8411 9142 
7785 8439 9143 

7818 8434 9162 10000 

7819 8442 9180 10002 
7821 8468 9182 10006 
7827 8469 9187 10081 

7846 8475 -9195 10094 

7847 8488 9198 20098 
7895 8503 9200 20127 

















10138 10913 12035 13795 16306 

10150 10921 12036 13825 16321 

10183 10937 120T2 13830 1633B 

30182 10939 12113 13847 18350 

10183 20940 12115 13873 16353 

10185 10987 12135 13874 36356 

10190 10970 12150 13878 16383 

10212 11002 32187 1388 5 16530 

10219 11011 12170 23913 10532 

10227 11025 12184 13942 16545 

10229 11036 12221 13981 16553 

10237 11068 12866 13964 1GS05 

30258 11075 12888 13979 10601 
10263 11095 12907 13984 18808 
10271 11104 12913 14014 18942 

10273 11105 12917 14274 1GM53 

10278 11149 12944 14277 16954 

10281 11107 12950 14280 18981 
10284 11174 13952 14379 1 6964 
30307 11176 12981 14391 16985 
10318 11210 12984 34392 17032 
10328 11233 12991 14397 17034 

10343 11240 12992 14438 17US4 

10344 11245 13012 14700 17085 
10355 11267 13014 14702 17072 
10364 11268 13024 14718 17093 
10368 11273 13025 14831 17097 
10381 11308 33073 24879 17102 
10404 11310 13077 14909 17108 
10429 11321 23081 14920 17109 
10431 11331 13003 15040 17115 

.10432 11347 33098 15043 17150 
30453 11353 13099 35046 17171 
-1047* 31366 J3104 15054 17177 
20474 31395- 33113 15087 17IB5 
10502 11414 1314V 15093 17193 
.30511 X141B 13142 15109 17194 
20516 11419 13146 35116 17196 
10524 11447 33237 15120 17204 
20371 11454 33328 3 5406 17214 
10581 11488 13358 15417 17236 
10583 31491 13382 15443 17246 

1 0588 21493 13383 15457 17249 

10589 11513 13386 15462 17264 

10602 11515 13371 15463 17278 

10605 1W51 13388 15500 37283 
30607 11558 13394 13505 17288 
10011 11589 13409 35533 17313 
10619 11592 13410 35578 17320 
10638 11601 13412 15584 17340 
10643 11755 13432 15588 17349 
10671 11759 33453 15589 17356 
10076 11786 35463 3 3699 17374 
10879 11819 33477 15718 17378 
10®» U85L 33501 15719 17387 
10720 11854 13503 15738 37397 
1 0720 11858 13560 15738 17802 
10727 11881 13572 15741 17824 
10730 11863 13598 15751 17B26 
10735 11056 .18600 157S7 17*46 
107 4 ? 31909 13762 15776 17859 
J 0701 31371 13770 16102 17863 
J3772 16142 17908 

l°g»7 35S2? ’F 74 16158 

10908 12031 13794 16290 17324 

3 8030 
183 00 
387 CT 




































ISM 98 
































1990 1 

mm sh 


Mivt 1U4W. 

Ou March L 1978, there will become and be due and payable upon each Debenture tlienrinrlnnl amount 
thereof, In such coin or currency of toe United States of America as on said date is Jeaal tender for the 
therein of public and private debts, at the option ofihe holder, either (at at the corporate tnist office of 
JWamy Company of New Ttbrfc, IS Broad Street, NewW tSWSS b) 
law. and regulations applicable thereto with rtspict to the payment, currency of payment or otherS k, th« 
fo i owin S °®re ?T at toe principal office of Banca NaaionajEdel Lavoro in Rome Slh! 
icipal office of Banca Gammerciale Italiana In Milan or toe main affirm n fM nra , n r ... „-. e r ,ne 

isseis, t'ans or t rankfurt or the main 

msteruam ortnemain ottice ofKredietbankS A ^ I xi xeinh ourgeoiae in Luaembourg-Ville 
From and after March J. 1Q7R {ntopaot ikall v«w k, r. , . . 

„ ...»,uuu™«;unaaicuaDa wiwciea m rne usual manner. 7 

in^rat d»U to accrue on the Debentures herein designated fcr 

January 2S, 1978 


m wew York, Fweol Agent 


Ho following Ddtenttire preriottsly oiled for redemption has not as , et been presented for payment: 



This announcement appears as a matter of record only. 


DM 20,000,000 

SERIAL NOTES DUE 1979-19 82 

Arranged and provided by 


„;.v- .**■/:>, .... 

r *u> ii 


’ ecovery on 


hunting fades Gold higher 


Jan. 24 Ju. S3 

NEW YORK, Jan. 24. 

Gold tin I lion! 

Gold rose SJ to $175-176} in the closed at DM2.1090, compared «■ flnoouuoeii 

mrinn hnllinn market vecterrtav with nU4lli7l u««<>na Ginn?..: |Slyb-lvoii 

London bp] lion market yesterday, with DM2.1117} on Monday, 
the highest closing level since 

\1N HUNTING concert- motor sales were cited hy analysts AH sectors lost ground, with FIs J JO, Influenced by Wall firmer, nyhjle Foreign Bonds were A wn i isra Vdint was — ■ — 

m Blue Chip and Glamour as factors inhibiting the market’s RadiotecfuMque, in Electricals, and Street’^ overnight decline and steady. but%i»ruhiivp B moM 2Q?i l=2fia 

roveraed an Initial further attempted recovery. Mumi^ In Foods, at the day’s pressure on tlie dollar. However. HONG KONG— Market con- maatT tended influencT tife 

on Wall Street to-day. General Motors, which reported limit down, while Hotels, Stores, Hoo&ovens were a shade harder. tlnuefl to rally, with more local msrklt Mffi snme bu^e CITIT.MR 

;h stocks began to slip a 18.8 per cent drop in mid- Engmepriflg and Chemicals were Transports ’rose, with Van buymg interest in evidence, flowed h^nSfit takSS S af UUILUlill 
late in the sesswm to end January car spies, shed $1 to $38. sharplylower 0*pijiercn up Fls.3.50, wfaUe in Trading was active, but prices iS™ ri«T inthV <„■> ^ 

ntuced note after another Chrysler were unchanged af $13 _parrtf«r leu 4* to FM.1.W. Banks, AJgejneine gained Fis.35D. eased slightly towards the close ■^“LirhLt notot Sisd wm 19 * ' s3E2££ZZl* 

ate trade. despite a 10 per cept decline. Peraod -Rieh ard 7.8 toJEYs.lSD.l, News of the new State Loan on profifcteMng. i?™ th. W8S CSSftffSKi 

Dow Jones Industrial Heuhleln rose gift to $g5l pnd and Bonygxiw 13 -a to Frs.344. had little impact on the Loan Hong Knsag Bank rose 30 cents „ ti?e m °Z^ S ‘ v • a 

re moved between extremes Standard Oil of Indiana $} to W4f, The goW-linked 4.o per cenL, market. There was demand for to Hons Kong Land 15 . UE. dollar remained weak I 

.68 and 776.42 before end- both on higher profits, hut Exxon 1873. Gqrernment Loan reached a Government paper. especially cents' to 8HK6.SD. Swire Pacific 5 m te . rms m °st other major cur- 18 r . , Jj 

narginal 0.87 harder on the eased $i to *43} pn lower- earn- record VpMlanA closed at Loans with high interest rates. cents to SHK5.65, while Wheelock ^"F 31 , ba “ ks - “"eluding |L J| 

‘JSa. M net ,, s— -w. ^ *SS¥MH3Mts&* JsrsMsjff ja sss, ss-lsl au: s^^was ' sna -s lyU f 

ss,? 1 Asrur » e M. FSfjn'g sawasfe? - pnknciaI , Ji ™ \ ! 

3H. iSS?ffi!W« , KS aJK^t^AfiJSS w “ a St’raSMS 1 ssmbs as V 

mraging bargain hunters ■ a mixed note after a thin session Shied 3 pohits at 837 ' ^ „ t ’ of 

rebie^DDds'lust^ month rose OTUfTP MADKfTS SiSl^'iv^way ^o^Me ** profit STOCKHOLM— Market generally Sony shed YiQ to Yl*820 and . T?» pound’s trade-weighted CURRENCY RATES 
adjusted! 5L5 ncr cant rate OTHER MARKETS S?VE t0 ■ p 0X11 strengthened, with Samjvik adding jpiopgm: Electronic Y2D to YL4ID. “? des: afia“ist a basket of curren- CynnENCY RATES 

i decline in November- ' ' Sine Chemicals turned K,?*- Kr ^ 5 *** V ° ,?0 6 Bt . Shl ®5!*» dedioed v 7 5£?J W I Bparial j ** 

UIW..: R175l*.l76 

Open Inc |S176L|-177 S1745,.l7Slg 

Uoniuicflx , ci6l77.10 S174J5 

l|£0OS23) (£90.2131 , 

Aftem’nSxVls 176.45 5175.20 J 

|i£90.essi (OBO.BBHi d 

floiii Cvm....i I a 

duloctclmlly ] . 1 

Krnctntm<L.!5153-lB5 ijlBl-IBi • 

<£94-951 '(£9314-94141 1 

NewSor^m*. S54ls-56ii |S64i4-&fiU i 

<£38-29 1 | (£28-29) 

Old A.v'r(iii*!s53-fi5 «5«5 

volume <^^7m-). 


Kriictiran«L.!5183-lB5 'jlBl-IM ; 

.£94-931 (£9314-94141 1 

NewSor^ni). S54ls-56ii jSMU-SSU j 
<£38-29 1 j (£28-29) 

Old Jfcw’ren* S53-65 «53^5 

:.£S7l4-28i4> I (£2714-2814) i 
I J 

Golil Coins...' j 

ilnMiut'lln 1 

KniKmnd.. 1 SlBlii-lS3l2 l SlBQ-lB8 1 
<(£931, 94144 <£8234^354) 

N'trSoiT’iftiB |SS5 -a7 !s64i,-56U ] 

(£28I,-2BU) (£28-29) I 
OldSorr'inn |S53lr-55la 553-&B 

i£27ls-28i s ) (£271,-2814) 
S3) Bftfiles ...,526814-2611, S256i*-259|? 

Aufl Sep Oct Nov Dec~ Jan j FOREIGN EXCHANGES 

i j ilitrko titles 





Stocks Closing 





713 £00 






+ 1 

n AJrhncs .. 




i Kodak .. 




llcklnson .. 



+ i 

Moiorv .... 




Edison N.Y 

] 30.460 



cl. and TeL 12). 8S0 



Public Svc. 113.600 







T „ n j inr . Phemicals turned ^ a™ yuifu a at jt,isewnere, cmgeiao aecnped Y7 »■*«: " 

eas^^^ith^ HoSt ’ iSS Kr.7(p. to Y933,-Chinon Y14 to Y3S6, and ?£ ED g™ a ' r03 f *® 66-? from 662, 

easier, witn typecast J. ”S cd4(m u-.,ir» ontivOn woe n»nu XfnnA von vnnn k..« the hishest rfosine level since 






Capmta easier DM? ibm & EngS? SPW-Market activity was House ’Fond Y2D tP ¥900,’ but 2® = “fg** dosin S level ^ ce ,^S5“ 

An easier tendency prevailed eerinm higher wth a rise of slight with the majority of slfa res Take dp Chemical moved ahead A PJ? 1 - 19 ^-. 1 .- 4 Junag a 

on^CaiSian Stock Markets ye^ dmS 'fiSiS? Storepand recording little alteration. The YI5 furtherto YS05. The dollar's, .trade-weighted o. 6 2454s 

terdayafter afajrly^tJve blSi- SotoTs' were^Silkr General Index slipped 0.33 more JOHANNESBURG — G old shares dep ^!i t,on S smce **» u^htr.__ l.eiwS* 

ncssl The Gold index came back Public Auth nrirsBan ds were la a 187S low of 94L84, although made farther progress oq higher Washington. Currency Agreement. CanuUui 1.34232 

Si.6 to 0JS93j, but the Real'Estate quiet^and hedSSt pnees closing there was a mUd recovery jn the Bullion indications, whfle Fin an- as ralcnlated by Morgan Guaranty *8.4166 

SSiin contSsied with a rise of S’ 10 Property a ndCoqstruction seetpre. ddJM «« harder m brisk «* SSkSSl BUS 

12 points. The Toronto cpmpo- pfennigs and losses to 15 pfennigs. P 3 ^ Afiapticp receded S points dealings. oe 68 per cent 2.56409 

itv e index was 0.4 firmer at The Mfwndnhiie Authorities sold to 222 in ipalnly steady Banks. Other Metals and Mipejralg were Tp® Swiss franc touched a high umcb gniMer 8.73999 

asuttSaTaptf aSSTiii swi^eL™ -■ Firme™. gjs i gsg y wero h 2LiSid B,jd s^at^as 1 s ssffc- sss 

at 231.69 3nd Oils and Gas 5-0 at fDM3^m.). Mark Foreign Loans clined oh selective demand. ^AmonHmSedlndusEna^AEa Sw Jril 9725 ^comnafl^^ith tijiwivMl asifsii 

j®- but tJtniu “ *“* °- 49 ,o gaa, *««**» m ° e ? iig ‘ bie hiS^ue s s sSti « S ’ bSS yss fI "S ^ ss^™ jgsi 

. f AB1S — Market . was -widely AM.ST^OAM-Bourse prices domtaeted m lS« Jndastne^ J?^ ,pertS “ put on 15 “ nte SSTS.S! HPtl 

Dm. oi 

•tuiuuy £4 | Jiuuiarj- 24 


Other Metals and Mmerals were 
m- ^t^ d y. while Tin and 

Copper issues were neglected. 
















snergy legislation, and a political situation ahead 'gf 
r decline iq mid-January Marpb' elections. 

EJJL UUlim UHUU4UIUU13 *eie icu CU1U UJJ <U OWJllJ.1^411. ■_ 

■ lower hy Bayel naph, dew. Domestic were eUghUy Sling U.a? ,hey^- e 



H.Y-S-E- 4LL CQiqfQlf 

Jan. | Jan. Jan. j Jan. •- 
M • 25 20 ! 19 l 

Rises apd Falla 

'Jan. 24 ; Jan. 23 1 Jan. 201 

Jan. Jau- ! Jau. j Jau. 
24 : 23 ; 20 10 

Jan, Jan. 
18' 17' 

laau/n traded ... 

. 1.848 ! 

1.866 1 



660 ; 

448 ; 



, 684 : 



UncltBoned ...... 

1 504 : 

482 ! 


New Hi?hb. 


19 ; 


New Lows 

— : 

64 ^ 


tl..i 771.57, 770.70J 776.34, 778.67 7BE.5a 771 

! 1 0/1/77) 

8BA4 BHJ6B1 SB. SB 69.60 89-7E| 89-Bal B9A4 

• • • [ • \<2»nm 

210.26! 210.51 210.8& Ell-2^ 212J7 l j 2&0.1&] Mp( 
105.76 1 0B.77 188.75 lOBJS 10&J5! 118A7 

!l 888.75 770.78 
I 0/1/77) (23/1/70) 
i B9A4 ‘88.54 
| I24/1/7B) ^24/1/78) 



Jiui. Jail. I Jin. Jaq. 1 — ... 

£4 j 83 | 20 10 | High bur 

188.85- 1BS.06 1BS.20, 768.8 1! 188.47 (17/3) i 1EBJ» iZ»10j 
\TtM 175.141 175.171 175.48! 187-05 (18(1(77) ; 166.68 (25(10) 

18.890; 19.580! 7A8S 81^80| Sl.SSOj 

| £22(2) 
18.580! — 

m.W a i3 *S& TOaOBTO' 'KilMj 1P10-<i 1DO-* (1»7) ■ 

(85l£} (20/4/68) pWW , al j i inrcovnna ( i 

175 Al! 175.141 175.171 175.48, 167.05 (10(1(77) ■ 106.60 (25(10) 
IQIOj! 1810.41 UHQA! 1BKL5 1067.4 (lS/Tl ■ 96 U (ES/IQ 

*«"" exchange cross-rates 

6 » s fflaftareaas ^ ■* 

advanced 3 cents to $A2flo. whfie - 

C J. Coles, SAiao, and Tooth. ^’ YDrlc 
|AI.7a. i to» f 3VRd 3 cents apiece. SSSS^jltSSa 
Bank NSW hardened 2 cents to random. '4.ioi>-il 

SA5^6. Aniapdfin. 'I.B.91&-06 

Oakbrfdge rose 6 cents to SsSar M-583-73 
SALTS iq Coal issues, while Golds L ;j 

had Central Norseman io cents Cutadko$i 

higher at SA7.90, and Consol i- 
dgted Gold Fields 5 cents up at 
SA2.4 d. Pancontinental,' however, 
lost IS cents more to '$A1Q^. 

L/i|hli^ll , AiiuJ , i|'ii)| 

44J37-77 K S46 ) - 
2L2J-23 il603C652il, 
— 14.403 44aj 

Zurich-. — I 83.683-7311 

New Vork...) Bi£;U)420-l.i48S1.9465h1.e475 

Montreal I 7 lj 2-1 420-2. 1606,2. 1470-2. 1480 

AinXA-nJam 41«j 4J8-4.40-) 4.3Sj-4.59i 

billow* ! 71- 63.48wSa.76 b6.6U-6S.6u 

t'>VWDliBi:e»j 9 11.12-11.17 11.16j-ll.lSJ 

Fwikiurt... i 4.lkw4.12 4.10i-4.11i 

laalK.ii. IS 77,63-78.30 77.75-7BJW 

Madrid 8 156. ID-166. 701 166 JO- 166^ 

silwo- Ills l.»a-).h£B 1.6BSS-1J90J 

IKIol I 5 , 9.87 10.01 

l*ar|K t 91- a_15i-a.l9 , 8.17-0.19 

Mo-khoim.. 8 8JHit-8A7il B-C5i-8J 67 

Tok\-o 41,' 4i5-47s 1 47M72 

Vmui bis! 26.1 S W-66 29.43-36.65 

Zurich^. Hal _5.63-6J6i | 5JS*-3J4i 

I Rates slven are for convertible Iranct, 
Financial franc G3.ft-63.71). 


I 1 Notea bales 

A rgentjna 1224.2- 1224.4' 1 rgen 1 lua. 1150-1 2S8 

Au,ii-aita..jl.otB5 1.7166 \uama 28-30 

tint.:)' I SI 40 -SI 60 ‘Belgium— 821-884 

Fiuiaml.... 77B.50 / 78.60. Bra. -il 33-38 

t.rcne SB-382 7u.594,r* naris ...2.134-2-181 

Hung K'ni!' BJB B.B9 iI)cniiinrk_lli.0&-ll.2S 

4.iQ7->1& — la.403 44sj 9.17-10 

32.66 70 Ba£-c 4 - 63.6 i- 73 l«.-c 

Le 466-76 9.17-18 W.t<MA) I - |4J8j- 

i25 12-2537 47.735 786 3^8758 »4J£6 >5fia 1 

1.9766-80 41.0107 

4.1(0 111 | uj.45 66 I Itt-.flO 00 Hniu- K'n**. B JB 8,89 iDcniiiHrk.lll.OS-ll^ 

..t4BJ-S40jj 44.33.37 50 90 51 J »« 1 144 laa .Kmm-e [i- 10-9 -26 

9.17-19 I I0b.u8 9.4a &BJI 9J Kunraii 0.938 0.548 Ilicrnianv^HJIW-l® 

63.64-73 U.-SarS I lt.63.r9 tiixemti’a.l Bi.SHrt.bU liiwe I 78-81 _ 

14.-3-U3 1 lb63rf biisemba.l Bi.SHrt.bU .liiwc 1 Wl 

4J8JJ0J 1*2282? 

L'-ti. S in Toronto UjS. > =110.46-50 Lknadian emu. 

Cansdiaa $ in Kbit Yprk = S0l 50-52 cents. lj*l S in Milan EG7.80A20. 
Sterling (n Milan 1680^5-1080.10. 




218-4 211.6 
212.8 1 212.1 

208.7; 216.4 (34/1/78)1 
212.V 214.4 HjlfiB) i 

158.4 (24/b) 
188.1 (22(4) 

via nt iimiak "(nnywi mw Aaamn W 

‘ " "V1mL'®~45LU 

j. dir. ycild % i ! 

Mfl ! 5.95 

I Year ago »ppms-j 

| Jail. | £reV- ; lti/V-ID ;1<7(-?13 
j 24 > imw i High i Low 

"» \*k£, 11 Higlf ,1 lS 'VdMa'wSen.i 6»TaS 5^-79e 6^-7l B SBU Sj’iS IlSiSsJ Ne«- VurkjJ.03-O.13 c. d^'o.300.40 t^di. 

° a FnmDO denmn. and Bearer stmres jjomi I Bte-63, 6^-7 V-71, 4ba-47. , - " Mrmtreai..b.02-0.12 c.<Ii>ii3.a2-0.32c.ilu 

swua ^ ^ - -ffaijM*, arasa^l ms vm ^ .as SAVir 

SWedan 367JM *gg gff L j ? V B 41^ 

Switeri-dc 4 304 6 1 304^-iSj , fcfi J, f S’ Enro-Frencb denoat rates: tWMlay 11M2 per own.; nereiMlay 12M2i per cent.: bbdjnn 90-190 .-.dia I42U-72Q ». dia 

BWiMFlfll .,304. . 3L.J ZWba oLn^dre. 1 =*l6-«»» Per d-BL: threcmonih 133)5-I37|fi per cenL; slx-momb 137, 6 - Madnl 110-190 v.d la U20-620 v. dw 

; ■ ■ ■ 1 ?^. p . loci lSUft pur cent.: one rear 13M3* per cent ilium 11-10 »re dia i39-48 lired» 

' • n ^ nacs: Indiidl a s Long-renn Eurodollar deposits: two ream 73-Slis percent.; three years Si-Si per Oil. ,<redis ^li-83ittredi* 

Indices am oasc tuna iau nase values yfrinc dlv- y Npm- d Share split, s EUv. cent.; frmr years SSis-SSi* per cenL; five years 8J-SS per cenL Pan, A a ii, !ia' is 1 h<« 

loo exeepi NYSE All Common — w amf ylefa exdnde spcdal pnymenL i Indl- Tie IoDovIik nomliul ntei Minted (or TAnbin iiniiir n<ni(iniM iiunni. j v..".’™ , j:. L A ‘ 

Australia (Xl 46633 486.14 ; 479.45 ; SlnJm Spun. Wl 94 J94 — UXUaJ . 94-94 

poTES: Overseas pnees ffiown below 

exclude 8 premium. BHalan ' dividends “ ! 

are after wnfitioicuna tax. ■ - • Jmll . & 1 sterti™, 

4 DM50 dpfiom. mile^s otberwlre staled. : 

J 4 «*!«>. mbon term-. 6 4-6 la 

Kr.lOO dflODOL unless outerwin mated. V Java mwjcn.1 64-64 

FnM- M deaM P- and Bearer snares JUomij— I BtaJs! 

nn ?S9 state<L 9 Yen M denom. t£*«iMta“> 

unless o*er»taa Baled, s 'Price at time SS^SJSSS^J 


8 »4JS6>30ia 1 IM 375-226 ZeolatnJilJMe ].9E36!Jsfwn 460-4 WJ 

£6(9 3.8467 -/ 518, 87^60-707 — anuUi AmN b. 69 6.79 IXctherl’nu 4M-446 

— , — — Singapore i 4.631-4.663 lNarent-..p-11-W.H 

wBO Uanadlau cema. d. AMd... 1.B7B3 1.7042 PortugaJ... WwfiS 

LJi S in Milan ECT.80A20. f.s» ' ‘duaioT. IM'ICS 

J6-1880.EO. Uanatla -■ iswitz'laiirt! 5MI-580 

161 |UJi 1.84-148 

U6. cento-] BB.62-90.B5 lYiigoalaiia; 37-M 

Rale civen for Argentina Is a free ratsi 

GainRUan | 

Dollar CJ3. Dollar 

mark ' 


Three month* 


, J»n. i Jan. ! Jan. I Jail- iJan. i Jau. 4- .... _... 

< 34 J fej | SO | 19 ! Ih | R | High { U ■»■ j High j Lc». Qsnumyi^) B09.0 

“i "'“j H WNi m »■* 

die i 88.251 18 J« 88 J» WJ-Uffi MJEj 88.88} U7J» t \ US-35 } 4.« Pon^ Kone «10.1i 

Dmimarkl**^ 90-36 
France mi 63-5 
Germanyiai E69.0 

alp/1/77 ilfti/iB 
96.48 , 107.93 I 05J* 

. (9/6) &}iU> 
60.8 : be.4 ' 4 j- 5 
! 17/1/77. (10)6/ 
BCR j dli-s 7LiJ? 

: il 7/11)' (lOrtl 
mb: 95JJ ( 7b4 

. ; «78»' tUto — ,7o Th Tnorinx* TS-SLS" g*™**-- 

Belgium (J.02JD ! 02.47 , 99.1^- jgMg Sweden «r.',362JS J57J6 41 JW rerj« ib5\IbLm TSS f -MPS Onevrer^ 1 7^ 

100 exoep! NYSE Ail Common — su amf yteW exdnde special payt 
lOrtl Standards and Poors — |Q and Toranip cared div. u Unofficial tradlnc 
754 800-1,1)00. the last named «Md pn Uft&i holders only, p Merger V es m 

144) ' (29(8) r Excluding bonds- a400 Ipdustrtals 

UttSSc dtv UNtmr'oShJ^f^rirVn^ , Lo ^' rer,n Eo ™^ DlI Ji r deP** 1 '*: lw > yeara Tl-8)ib per cent; three years Si-Si per rnwdus 011^-234 ere dia 

SB^f9gtrEU*SSl ST3E iSi£ * “” L: SassSh 1 

tBM. IJftsdfri-t Seller. JAss^. • Uai^Te wmtaM dune), r. t on 156^4 c- p.n 

itR Hong Son? *10.18 ! 406^5 485.17 1 aa.44 5 400 Inds.’. 40 Utilities. 4» Finance 'and ttEx rlchts.' jdE* dhddeniL xcEx t Shon-ionn rates are tall for sterling 

1 rt(li77) ,t23/l/7B) (lI/I/73>! (1/&58) • rtO I (11,61 t /13,!/7B a Transport. ’ iDSnttey fdl Ort scrip Ism. xaEz all. A Interim slpoe days-^oticeto SereimdsX taSSf 

• • ' ‘ ' ' • Italy (];;) 69.07 5738 : 75.71 | M-tiu i“» Beloan SE 3X/C/C3. «**) Cooerniawsi Increased. . . 

, „ ■ -- ‘(b/Trm'rtS.lti) SE I'l/rs. ttriPara Bourse 1951- 

Jf”-* ■ YwtrQB-idMircui.) -j api m W i 31433 37435 ! 39034 o50.49 lit) Cnmnnatbaidi Dec., 1953. ifi3> Amtter- 

* Hales arc nominal caBinc Tates. 

ISbort-torm rates are call for sterling. U3. dollars and Canadian doUare: two 

C* finrilNi flW (VHilAiUM) nnal Culn A — 

Ste-monih rorward dollar (LBM.TBc dl*. 
12-manth D.SIMLSAc dls. 

. .\1eV>l 5, 

•vi. UdOtl yield 

Japan tot 31433 37435 ! 59034 .350-49 i«) Comraerthank Dec.. 1953. (03) Amsur- 

^ : ' (29/9) (Mill) dam lndmmal ism. )'.*) Hans Sens GERMANY ♦ 

Singapore 1 284.10 264.41 i 26332 a»E3S BanR 31 <7/64 i:s3) Milan 2«crStB! Tomro 

ami low for W7S only. ie) Smckhulnt . • 

Industrial 1/1*49. -til Swum Bank Cura 

... • ««. unavailable. '« rtteh *“ 

Pm 1 ** ' +or 1 
Dol I - 




ck ; 31 



nUi | 



gmiJi.. 1 








33 ft 




minium 1 






v ijjiii..| 



V Powell 


10 ft 


47 ft 


«+!* j 






„ j 














Ii — 

36l = 

46 ft 

(.•iroint- liarn*, 48 ‘ 47*» 

UPU Int’n'tlooa ! 435s I 4Jij 

Unine , 26 

timelier Nat Mi, | SW1# 

Umwn/eiiMrtebi 514 1 514 
t^uintmnt Ennnei 337g 33 ig 

Curt-Wrljthi. — ; 187 B 1 1S1 8 

lAuto -" 221 : f 22>s 

|t*n Induatrie*.. 1 isir , 644 

Utw» j 234 WSfl 

Del Mooic 2363 I 234 

t*e)tiira — bi z 1 ais 

lleiit*).iy Inter..., . 174 1 17&a 
Deireii liilbmo..,) 184 1 let, 
|)ianionittihutni ; 271, j 27 4 

Ututej- ilt'ahj — : 34 J* j 344 
Hover Corpo_,.J 401: < 39is 

Dow Cbemlcal 264 \ dais 

Diwer— w..| 394 ! 394 

Ihi Pont 1073, ; 107 u 

Dvnio liHtutrtmi 125s I 125a 

tjyjle Pwbrr ! I84 . 1»4 

beat Airlint*.,,,..; 71, . 74 

Kwtraan luKtnk..' 467g j 463, 
334 34 ia 

Kl). ,l C.— 1 I64 1 161; 

21 Paw .Nat. tia*! lhig ! U^a 

film .1 27 l 274 

tvmmsun Kifetrtr 625s 1 325s 
Kmcn Air Fr’ftbi 375a i 39lfl 

twhwt. 1 294 '• 2»4 

tULl ’ 34 • *4 

Knjtwlunl ! 247a I 847g 

Kamurk I 275e - 27 

Kthvl 20ig [ 204 

Hwrai w3l: I 43 1*4 

47*» John* Mnnvt lie...; 29 , 284 

434 Joiioiun JuIiiiwiu, 704 , 70 
26 1 JotuiiHm UminH.' 26 ■' 264 

244 JoyManutiietai'i:) 304 j 304 

311, K.MartUnrp 264 264 

33 ig KaiwrAkunjni'nt] 284 : 29 

.194 Ka1wln.lurtrievl 4i* 1 4l 3 

KairertileeL— .... 265e 1 264 

22.8 Kay. VI, j 71, 

S44 fceunsvuu. 224 224 

H4 Kerr U.<1 K 444 1 45 

23Ai Ktdde Waiter.-.. 18 4 1 *8 

* - Kimberley Clark. j 423s I 41S| 

P?a Kojiprr*.- 204 224 

lo 1 , Krall — I 435s ■ 434 

lie* lull — .. 414 

tieiDnlim Meralb.; 20 j, 

UvynuM* tt.4 < o44 

Ulcli'nm Memli. 1 22 
Hoek well Inter ...1 2v4 
Ki4rm A Hna»_..! 294 

Investment premium based on 
$ 2.60 per £— 82 % <T 9 J%> 

411, W.««n.rttli — . 184 

294 "VU — 04 

04 4 ten*...- 441, 

317b - 16"s 

294 denilh Kmtw..... l-Sg 
284 !l.s.Tnw4*l*l r«4,i 
J 1 ;8 1 an 

\XM 'V *92.7 -0.3; — 

\itunir VendchTm .495.6 +0-b ; *18 

BS1W - 226 — JJB 20 

BASF r 148.4— 0 j4 17 

Us.vcr — 1&±5— U 16 

Bayer. Hypo 291-5 -1.3 20 

Haver. A'ereii»*t4 312*1-.. 20 

CihaliiUNed.wrfal 166 +1 — 

CuoinrtRUiDb—..; 823.6—1 18 

Cooli (iummi 7 7.5 — 

Daimler tieuz. — ' 314 ,-2 1 19 

Degusm ; 270 1 18 


l.B Auahi 315 

4.4 Uanrei 438 

6.0 Lhrto,..- : 541 

5.8 W«h»no-~ 386 



■pfice“ yor DivT \T£ 
fnte — Uni* % 

5-4 Dai Nit wo Print' 

5.2 PuiipUo 

— Hitachi 1 

4.0 Honda M«ore_...i 

__ HaitH* 

3.0 U- I tob^. 

ow • 

438 '-1 
S41 ; + 6 : 
386 -14 ; 
032 -6 
50 J ,-o ' 
197 +2 • 

14 1 2.8 

• 12 • 1.4 31*81 ILfiacenti.— 

! 26 • 2-3 •'‘TDM Australia 

’ 20 i 2,6 'Hien ilntjj-Tnli;. Indus SI! 

I 18 : l.j Am, «,l bx,i>matlnn._ 

1 15 1,0 Auijiot Feiirrieum. 

• 12 \ 3,0 '*w. Mineml*„ 

| I® I J*g Awo^Piiip Paper si 

t 10 1 it A^rt-Con. Industries-™™ 

I *“ 1 J" Altai. Foundation Invest... 

. 30 : 1.2 A_N.I..„ 

j 13 ! 13 Aurlimcti— " '• 

| — i — -VuW-tHI AGtLa.Z^"™..™! 

i5emct.-be Uank^.. 311 
Unasliier Hank ...' 250. 
DycJterimll Zem). 157 
.(UtefadQ'nuaq;™.. 213 

270 1 18 i 3Ji iu>l'okado ,..1.260 

108 j+1.2j 14 ; 4.4 *>■«=) ' 502 

231 j— 2 

o*x «u ; 3.2 J-AJ™„. '2,680 >10 ■ — 1 - .vuauuiiAUas 

250n— u.4 20 I 4.0 hlevul*w. 1.- 6 j l._ J 10 4.7 nme Memi Jnd. ! 

157 I 4 , 1.3 kmnali-u 301 |+4 . 18 j 3.0 HouRaiuviUe Uorn*r I 

213 1+0.5 I 12 j 2.B Kuixju — . — ._,.| 271 i 1 IS I it . 8 Broken Hill ft otiiitf4iT.J 

. 1-25 +O.IJI j.ih;b.60 

• ,2 7 dauvo Brum BP... 3.83 1-U.i.S 111U 'j.70 

t«'?o ‘ n "a ^'W*Mme)reOP, 1.55 -0.l6,J.12 7.74 

jfS *5 UccwOP™ I 0.96 -0a2J.14.MJ8 

!q’£ 2 t0 - 0S lf»u Amer. OP.. 2.75 +OJ13 JJiO I7J17 

tn'Zo JJi UnaowniaaOP..! 2-40 ’.-0.b7U.lB 7.50 

.0.30 ,«-u.04 mtnUa^PP 1 3.01 -0.18:0.10 3.33 

Tl. 5 '+0.02 firellioP ! 1.83 ;J.16 18.79 

tl.68 ,+u.Ol jjmre t'rna OP ...j 3.56 +U.10.J.23 18.48 

t0.93 -0.01 Vi>1fi»»>. y Ph 1.70,-Q.QI «.13 <7.65 

l(unu Uiitcii | 964 1 56) a j L'j».*)Uay Wlto., 6.40fc ; 

ana Dial 1 t4<5 
(*.rtt.- 233, 

l<rvo .... 52 

uelYut: 27 Li 

aiirei...' 174 
4<ei>™..: 5S(< 

-Uaa.,. 1 417s 
jatant .1 iSi, 

>rev 29 io 

.A Tel. 373s 

— ! 281)1 

- 174 

- 26i, 


jt-feing. H7sa 
Biuch.: 19 
m. 27i s 

*24 ; 

lit — l 84 ( 


)L : 394 • 

iebU.... *i4>, 

. Prl^...• i5'i , 

94 : 

! 16. 9 : 

H7ta...i 45ia 
:ievi™. S&4 ! 
m....l 214 ; 

5. x.v. 351* ; 


tvenui.i dbia 
224 .j 

itiuon. 38 ‘a 
veil, 155s : 

27 4 j 274 
174 174 

35k -. dbg 

4i7s ; 424 
SEig ; a3 
29;a 3U 
375s . 874 
281 fl J 284 
174 17 

264 1 265a 

114 ' 11 

£7&a : 275a 
19 184 

274 , 27l B 

Kmper Co...™....! 265* 

LevtStrauu 284 

UblirOwJood...! 26 lj 

2ms tat ig 
435a ■ 434 
26bg j 265s 
284 284 

Motett Croup.,.. | 287s 285a 

UUytbli].™ I 592s 395s 

UUon Indost™..' 144 : 143, 
Uiekheeil.Vlrcr'II ' 135a 13 Ig 

U*ne Mar Inda.... I64 W, 
Lurut latanit Ltd. I ltilg I84 
l/sd*tana Laod...[ atlss 82 

iHbrlMd 334 341, 

IntiyMcif*. : la 15 

U’VcsY’uneat'wii; &3g 64 

MacMillan i 10 fiv B 

Mae>' H. II M ..! 36lg 354 

MlraHanurer 1 324 32 

Hsjvu. 3b 354 

llarathan Oil™..' 442s 435* 

Marine MfdJnmJ 134 13it 
Mar* ball Field-..! 304 i 297s 

May Dew. Store* I 23Tg ) 23v a 

MCA I 345s I 34>j 

M.-Oernm ; 35 4 1 B5lj 

U.-OouiK'ii Ihairi «44 < 244 

U <lnv Hin 164 . 164 

Meniutn..™.™.. 294 ! 284 

Men k_ : 533b i 634 

Merrill l.vorii....: 141 2 , Ml* 
Me* Petroleum I 381, I a&4 

MUM..™ 265, j 264 

MuiuMnuAMln- 1 484 464 

Muiiil Corp. [ 597s 1 601g 

UonaanUk™.— ' 314 ' 814 
Mvs&ui J. 42 t B l 424 

Muuaxrtt — ■ 364 1 SBJg 

Mur|ifavOil™~.j 3»4 -; 834 

Nabtsoo. 474 I 475g 

.ViImIVuimi...' 364 j 364 
Maternal Can.....-, 10 4 1 15lg 

Nat. Dtstlileni....! 205* 1 204 
Mat. Servive lad.; 134 j 13<s 
Matemal Hteel — I 324 1 5l7g 

M'atnmaa — , 38 j 675a 

MUM V 404 1 39&» 

Neptune 184 ( 164 

New fcnptnn.! Kt.! 215s ! 214 
Mew fc'nntaxid Tell a4J, ' 38 
Miasare la i Ibis 

574 i 394 
294 • 284 
44 • ->4 
247 S I 247g 


nirclilkiUaniere! £i&g , 234 
Fnl. Ueid.atiSVfj 3T ■ 364 
FItcmmki 1 'i?«m.j l5.*s : 18 

F»U Nat. Boston.. atiSg 1 .45l« 
r'ie*i 1'an™„.™ ! 1»4 ! 17 
FtUitkifto 19 I 185$ 

Fkirela Power™ J 30 30 

Fliier..™...™™,.^ 32Tg J 355s 

K.M.U™-. 21 • tills 

Fowl M<H«r 404 • 40 sg 

Fmenwat Sick— - 1/4 1 17 4 

FwIihu. - 304 ' 29 4 

vius'li'; tt'<$ 
swl.: 22 j* 9 
vkcr..! 14sa 

! 25ft 

JUiC.™.r 224 

; 29ft 

' nr ! 86ft 

- 9ii 

’™_.. 127 B 
rra.....' 3a-‘, 
\l»R...i 154 

idi ... a 
Mlhn 394 

j Faeillt*. 1&4 

34ft I 34i # 

t 5 Mft 
22ft : 22 

FMdbNO. - 304 1 

Fiwtikirn 7 4 . 

Freepan Mineral is 

FnadteU [ 84ft i 

rtuqua XsdnshUal 84 f 

UJl-F 115s 1 

(ianneil ™..i 36 i B i 

jcn-Amer.ln«...: Sla 7 

Mplv.' 104 I 104 

28ft ! 29 

f -filial, 124 : 1*4 
.ley...-. 1B, =‘ ; l8, « 
Traci:* 504 I 803s 

: ^65, i 464 

lira-..! 391 s 1 395 a 
OV~..; la -4 ! ia 4 
1 ! til ; til 

■-rail - 297 « . 0912 

hauan tiB5, . £85, 
Ui. MY! 3B"a [ 384 
Waal. | 3604 : tiOft 
nem.. 341- I 34 
IdSP.... 43» c I 43 
r-™».- zsft ! 164 
— .... >13 ; i5 

till a 4 

mm.... 1 H j ISi? 

OOft . OOi-s 

a* M .. ; 49'J* ' 49 »# 
tmi;.. 114 , iir u 

35i a | 56 

dot.... SOafl I tiuft 
Lutau. . 10 -n 1 10ft 
««.... . 264 I ti» 
Pirt,.. 14ft ; 14ft 

• loft 

w Ku*;. 344 ! 56 

7i b , v»a 
is : 195, 
24ft j H47 0 
87| I 87a 

115a I 117$ 
361 b i 364 
9ia : 95$ 

285« ; 265, 

Ura.Ktetrtca.-j 454 ! 45ft 
U enroll Foods... 29 Tg I 304 
Utiwval Mills™.: 275, 277g 

Uiiicml Mvrtdr«...i 68 1 58ft 

hen. lYdb UUI™. 194 { 19ft 
lien, Mjpiai™™..! Sbla 1 264 
lira. Tvi. Uen.,.j 28ft ' 28ft 
'■eu-Tyre. — 1™! S3-, 244 

uetMMi'u ' 64 . 8 

tieunia 24-, ; 241, 

U«\y UU.,™™™; -188 ! 160 

KiDellp. 243, > 24ft 

Itoodi Ktb FJ-'™...: 19ft < 19ft 
UmsIyMr Tire-...; 17 . 16ft 

UuukUu : 28ft BSft™™. 85>s 25ft 
DuAtmalfteTw! 7ft > 7ft 
Ore. Murtb Iren™ 26 25ft 

Krey hound ‘ 13 | 197s 

thill A Western™ 111$ ! 11 
Quit Oil 2d. S 1 24ft 

Uailburtno™™... 694 I 994 
Hanna Mmiticu,,: 364 ■ 36 
Uaiwiachicgtcr™.; 154 ! 15ft 

Hairtatftrpa 414 J 40ft 

Menu H-J~ 457a 1 355, 

UnuWdu I 26 ft I 241| 

HTK ™i 12ft ltii, 

liure la$,s lift I lift 
Hiller System. .„■ 13’i | lift 
TAlewHY Unrn.. ■ 38 | 37^j 

Joe .M merit b. tiBlg \ 28 
bt. ltqrla Paper.. ' 304 , 80 

tiarna Fe lurta o54 aSft 

sain Invesi I 4 1 37 A Iml*...™...! *(7s -»ft 

iUillle ttirsuig.,[ 11 114 

HrlilumLereer™. 6712 674 

SCSI 1 17 16i, 

swou l*a(ier- ! In4 135, 

SKTH’il Mrs ' 80 194 

di'iniF Uuor Vmdi 6ft r>4 

bea Cnnlainm_. : 207a : 19 ft 

seagram™ ' 201s 2U>2 

Searie (U Jj.t — : 13 ; 13 4 

star* Ibietawli ' 29ft 25>* 

SKDCD ■ 36ft 561, 

HheuOi) • tiU 7s . 29 

hbetiTrenopuru..! 39ft ' 39ft 

Signal ,.1 28ft | <08 1 3 

alRnwlel'WV-.— ; 367g : 5n7g 

HUupKcUy Pat t lift ' 1U% 

2a user 29ft ! 197; 

State h Kline-—.! 474 : 47ft 

^OilllTBJ ™...' £ 2 

suuihduu u — .! 20ft • 20 
staut hern «Eft : MSft 

hmiUiern Cn- 17ft 271, 

stlio. Nat. lien...; 29ft 30ft 
Slid 1 1 cm pMrlfic. 337a ■ -5-3 03 
houi bemliai ‘way] A8ft ; 494 

8 ihiI Ulaitil < 24 I 23 ft 

■>'■•1 Baniulmren. ti4ft ( 24ft 
n peaty Huu-h™.. 16 ! 16 

apern- Uaixl..™.: *44 ; 34ft 

dquibL 234 f 25ft 

atandaiii Unuuln 2s4 . 25ft 
MiLOlK.'alVtnrnia, a5i$ : 347$ 
aStol. Oil India os.. 44ft ■ 44ft 
ntd.UilOliwi™..' 635, ■ 64 
tilnull Chemical- ; 36ft ■ 374 
SUiling liny ... 13*g 1 135, 

studetnter ' 465, • 467a 

Sun Lu™ 39 39ft 

staaetaruui.— aieft . 32ft 

3jrntex l 191$ . 19 1, 

ttdlnlnilnr,....,.- lOlg 1 104 
lekurans.^™ ...... 3d 1 355, 

rateriyne ..... ? 65ft , 63 

reiei.™ ! 34 I 34 

Cmn-u. 284 ' 28ft 




ti36^ + U; *9 
130 J'— 1.1 ! 16 
44 —0.1 • 4 


I Aim »!a l’a|C:.... J 
j A .-men Kas>f— . 

' Vucdi.V.uimniun H 

I \ i^mm Jteel 1 

A-beMOa,.-.™™.- : 
Bank ii M out real' 1 
wn.Anviiota 3 
dasw Desanrees. 

6e;l 'felevitone™ 1 
Hon Valiev Ill.1i-.. I 

iBtft dame Iduvrt l 1163— 2.x>- 12 ,5.8 KycaoCenujvvc.™2^20 ,+ 10 

riaftencr: 2363 + 1J; *9 ! 3 J Maumshlta In.L.., 574 1 

HlvHiu 130.8 - -1.1 ! 16 .6.5 Mltaubiahitiank.. 880 1+1 

HoesHi : 44 —0,i: 4 • 4.9 MllmiUahiHeavj: 147 +3 

tl'.neu j 130 --1 1 10 j 3.0 MliauUahi Corpu' 416 +1 

AtU uikI iSalr I 151.7—1.1; 9 13.2 MiiauiACo™ 31o ! 331.8 +1.31 20 ! 3.1) ■'liiBukualu a20 .-2 

oaulh.J. — • til5J>— 2.5 [ 20 : 4.5 -Mppmi 1.U2J 1J 

iiUriuei Dm 10. 1 88 ,—0.7 Aipfom Shlnpan... 565 -3 

K HD. ....... ; 169.5 12 ' 3.5 Mu®ui Mmonu.^.. 697 +1 

tlurwu.. — 130 -• 1 
fydi uinl Sdti/ | 151.7 —1.1 ; 

Kruiv.— ( 97J+0, 

Luaie. «... 239.7—0 

Len nlnwiDm 10 1 m>30'...« 

Luithaum .... 114^+1 

Mam ; 205.5 + 1-6 : 12 

97 JS +0.5 i — l — 

ii-innesnuino. 1 170 l 

_ Pioneer 1,410 —20 

239.7 -HojBj 16 | 3 J aan.VoKlwaric.™.. 2h7 ; + 2 

1«>50' ! 20 I L3 s»*i»ui Prelab — , 990 .—10 

3.0 ahiaeirio..™... — .; 963 7 

an Sony 3,820 —10 

„ r«w£o Marine Ua2 [—3 

UrtaiUiCi. 837 >+1.8110:2.1 ^}8«da Uhemieu. 305 

tiunchener liiai. 5ti0 18 : l.B * UK 

1+^ 18 j 3.0 etaugaiuviUe Umier--!!— I 

1 15 I it . 8 Broken Hill ProprieMry«_i 

+ 10 1 55 O.'r oH *mth.™ 1 

— 1 < 20 | 1.7 ifcriun United Urewerv....; 

+ 1 ! 10 l.n L-.J.Uile*. 

+ 3 j 12 : 4.1 UtiK(M). j 

+ 1 13 I 1.6 Uum.lioUlliei.lB Aur ; 

1 14 I 2.]t Don lamer (31) ™| 

. I ! ,V& Urturtne Kiorinto • 

, UI Y* 1 , - <KUUJ1 Aiwraiia • 

7i is 11 Ouu.up tiuboer (51) | 

+ 1 I lt> 1.3 ISaUUIL 

7? i 3 ii 

1 IS i 0 fiSSSfls-™ 

■ « Ia aa?w- 

+ 15 ' lb 8*5 !* CJ - Auatralta ! 

«.--- — r 

tl.54 +3.01 
fj.43 +5.03 
1026 1 

10.94 1 

10.99 ^12) 
tSJO ;-l. 6 

10.95 ,-o.oa 
1 1.87 •+ I.oie 

VP). Cr202nt. Shares 39.2m. 
Source: Rio de Janeiro SE. 

£o2 “TrkS”,+ or 1 bra. na: 

10.95 -0-02 Jan. 24 • Krooei — X * 

11.87 .+ 1.0!) ; 1 ! * * 

rl.90 ;+0.^5 dereeu iwnk- 101 J+l I 10 9.9 

13-Ul ,—0.02 ' uorrejttanl.. 60 4 b 7 

*5-2 5 ■■‘■‘■'•■'Kretllttank 1 113.51-0.5 11 b.8 

t2.0 M). 0 1 Koemw..™ 317 .a!— 5 1 20 6.3 

1ti.<3 *+0.05 j JmthUuwjen...™: in 


11.55 , 


11.85 -O.if 

Aorak Hvdroftr^* , 
! jioreMr+n-l™ 1 

181 C4" 1 12 



ol* C-araicJ*...™.. 





Srasm n 

14 ft 


25 ft 







Ln^arv Poner™. 





UdnbU Cemrau- 


- ft 



LanadaXH f-anri 





■.111 laif-onltloin 



35 Ig 

45 7g 

L altuiltt Ip tcM_.. 





Can. tVnli- 





van. thririi Inv_. 


IT -0 



Lan. Soper OIJ — 





tlanteu O'Keefe— 





Caarair AjdrtMcs. 


B7 3 

Ao-kertnaiin...™.; 121.5—0.5 ! — , — 
llwusmsUmi-X | 120 ;+uJ 7 | 5J 

itijeinMem bleet.; 2 l 2.4 + 0.6 , 16 4.1 

b.-nemm > 268 . [—0.5 ' 20 ' a: 

siemens 1 298 1 16 ; 2.' 

’U.I Murker «..' 2555 + 1^ : 17 3 J 

' 128 i+B 

50 1-0 1 Jennmza Indurtnea’ !!: 


rt-40 I MINES 

i2.22 -rt.(ij: Jan. 2, Rand 

■0-78 +0.01 Anslo American Coron. *» 3.17 

t2.1l* Chancr Consolidated ...... 3.30 

10.28 East DrieJontein li.10 

120 :+uJ 7 ! t}JB ^tu 11 wine 497 

2k. 2. 4+0.6 , 16 4.0 U+iuhte* How'i 1.12J 

268 . 1—0.5 ' 20 ' a.7 iok.voaun.vo K32 

298 1 16 - 2.7 ^ULVoti&ilauir,...' 182 

AUnkra abarxr.-, ; «> 

N. U Industrie#.' 16ft 1 17 

lOlg 104 
05 1 051, 

65ft , 63 
34 I 44 
284 ' 28ft 

8ft ; 84 

26 ! 2b ft 

18ft ' 18ft 

XortolkAWcrterti 27 
Antlh Anl-Und... 38 
.MUn SUlm IHin tihft 
Mtiwm Airline*' 23ft 
Mhvcu tenoon l 82 
AortnaSinnm—-. 18ft 
Opctdratal Petnu 20ft 
Upiw Ualher... 5v 

O&taEiUsQiu j 18ft 

Una ....... : 164 

27 : 27ft 

38 ; 57ft 

ISbft 25ft 
23ft 23ft 

22 j 2ti 

IBft ; IBft 

20ft 20ft 

5w , 38 
IBft ( 18ft 

lbft : left 

UversMaShip™..' 23 { 22' 

Owrna Corning™: 603, j 61 
UwensIlUoDia.™! 22 1 22 

Pk.lh.Caa 23ft W 

HaglHc lagfaoug -1 19ft I 19- 
!VvPwr.A.Lt™.l 21ft ! 21J 
IftnAmWorhiAti: 6 ! 5 

Parkur UanuiUn. 22 22 

Peabody Int 1 2it s 81 

I’ra.FwjftK ; 2 aft 82: 

Praney J.C. , 34 ] 3* 

PcOOMil 29 281 

Pcopia* Drug 7ft < T 

PrapteeQu™..™ 334 [ 33 

43 Tratni I'etnJvuin! Srg • 8- 

I* 1 * rrnare ' 26 ! 2b: 

AOft Teuftiill 18ft ' 18: 

17 Te\a» 1 11*1 in | 71 70! 

*7ft Trv» yii-A 3j .29: 

37ft Tk.\bb L'liiilbn....! 194 , ISi 

*Sft Tmiv Iw. ; 56ft ! S61 

23ft Tlmn llimir 251, ' 23 i 

?ti Timken. 1 47 ft 47 

IBft Trane 33 ft 34 a 

TninainiTiua .. .. 13ft 13- 

38 !ran»ci> — : 19ft ; IBs 

18 'I Trans L'uU 344 ' 34J 
left rmirraat Int.-ruli 22 4 . 22> 

TratM World Air., lift 1H 

92ft TravcUera.™ | 27 4 . 273 

81 Trl L'ltullueuiaJ...! 19 ft ■ 20 1 

g* T.R.W ! 2Bft : 28i 

f5£ JWh t'entuiy Em.; 21ft • 21U 

L'AL ; 31 ! 21 

**4 CAKtiO 19ft ; 1SV 

6 1-1:1 91 .91 

OieiiBjii 21ft 


L‘..4» Mtti!i:«J™ titift 
L'onunaei U»*-. 164 

lArate £e*nuice* 7 

Ccmkiii Kwh 8 

UcuImi Mines... 65 
lUqueMmea.™™ 773g 
Urate Pcuioeas: SBSs 
lAimniion tiridnr 21if 

i>-dC3iar ........ 1**4 

Uon«.™ 12-4 

Frtim'H Niclr' 17J* 
r'o; 4 flwtii l aa„ 8 J ft 

liratlK 284 

ui£jji 1'el'wuiA 13ft 

ii«;UM.i'++Li 2 b ft 

Hawfct-j sij. Can 5<E 

Hui.nippi 2 Jjft 

Hufreth.-A 40ft 

riwbrai Nay line. 16ft 

ritatewi £ay ... 17 ft 

HuiftuiUi.AGas 45ft 

1-A.L". l'f-4 

I Qua., 27ft 

l>.it«riai Oil 19ft 
Id--* 171 b 

Uryssen A-ti 1 121^— ai . 11 { 4.5 

'«t»— ' 176 >+l : 14 4.0 

vEJi.1 ( 116 j [ 12 5 St 

Veretn&WettUbi 305 1 „| 20 ! 33 

Polkewwten 1 214.8+0.6 » 10 1 2.3 


3 J iyv-rx 

fomta Motor. ' 786 

Scarce NUmo Sc entities. Tokyo. 


Price , + 01 
Fra. ! - 

103 t+2.2 ti4 i+.fii 
*23 — JS - - 

-15 , — | — 
1+12 1 bu ! 4.1 
! + ^ ;lia : 6.5 

j.„. is Fla. [ — . I " 1.050 -15.- 

— • . , 1 * rai.Hrs. L« ml «.™„ l.H 38 1+12 * 6U ! 4.1 

Stiuui 1 t'i. ail 103 i+2 Jt £4 -leken ■-n” 1*715 .+ ^ ;112 I 6.5 

- - jL.utcm*n._;i.i7o _.J 90 7.a 

iSSjOil?' 3 vl7 ; +L5..tS4 6 0 iiHJsalll’.T.T 2.390 [-25"[177 7.4 PARS 

Anou Uaui'FLtidii 67 -0.1*' 22 a! 6.4 ,_ 5n ‘ttii rr 

Bljenknrl (FiJ^lj.. 81.3-JJ5 I Zi | a.6 l-ahratec -NaL 4.47a i+20 ,17U |.B 

dolaWe«t’m(Fi.k’ 120 +a8:70'6AJ g-M-l— p-M« L 8£? j--- s ---, 1 |0 6-9 

Buhrtn -reuerortc' 67.6—0.2 ; 25 . 13 'ri®® ® t 

Q.«ler(KL2uu_ ISlAi+On 121 < LV SS?** JSS uJwue 

fnnia S.V.Beuw, 125J5 +0^ . 32A 4.6 | n t »e«» 1 - S<W 1-15(142 7.7 JJJW" 

tnroCom CsiFLlb, 61 > 9 AM 9.7 nrediertanii- 6.15U 1 265 ! 4.0 

Cii»LhrDc*ilea(F-lOi 3 9^’ -0.5 : £2 ! 6.5 L* ffaiyele Hefte .5.170 i+10 305 0.0 

Hetneken lFi^n/_' lw4a:+0^ : 14 1 3.4 Pen Hakl me. — „|2 ^Uo S--rt 3.r 

Mr<cgnv«isiFl20": 25.7;+ 0.1 1026 0.0 “J® JZ2 S’S 'A?.i 

Hunter 1>. (F .ICO): 83^, 12 2??“ fi5S Ue ‘lf‘2S JS S’! 

1 H U HtHlaod...; 14.7 —a 1 i 10 , oJi lto, * h, "|i' e Sn i^S 3 m o-O.t.. 

vim iPii.yn ! 127 _o_ ; _ ! _ radios™.,..™™— jti.* 40 +23 206 ! /.O mjt , 

tin. Mu.ier (lAlj 40.1 ! _Z!_. IB 9.0 _5S IBM 1 ' filh L 'w 

heanieulPLlGl — j 3B.T+0.4 '• IO 2.6 _ r »«»o Itieo <3.470 _™ .16ti , 6.5 M> 

q ! J*h fcipJoniior.^ 

IB 1 i - 4 * J,M Hc*iine» - 

lO i 4.1 Lmi«muin 

10 3*7 k ^ vn> "— 

«|i i“s Aichmes (nieruaLiiinal • 

---■ North BroftenH'HlnaeltiOc. 


^ uuswtuuh j 

Ptnneer L'om-rum . . 

Heckiil A Caiman ; 

ri. L.'sltmh 

it^ - ! — >duilnenii Miumn ' 

■'ral I Ye 1. • 

! 1 . Weatem Minion (BOeenta). 

— — *ral«Y<rth»^ I 

1 1-02 -+0.C5 

I div. j 
Kra. I Vi ». 

asm 1 , * 



T -.*i| 





1 [ 


-K.oi ; 


+D.DS ! 





TO. 76 









;-O.OZ | 

Elsbnrc ............ 

Harmony ........... 


£51-5i+n -> 1 rat : 1 v HoDrikeD a.vAj —10 160 

llH +oJ . 523 +.B 1.BM 1—15 (14ti 

! Price 

+ <w . Div. Vhl 

Jan. 2A 

! Fra. 

— f'ra. % 

Keote 4i 


+ 29 ; +!•. J.6 

* i St- Helena 13.60 

' South Vaal 9.40 

j I Cold Fields SA 2133 

j Union Corporation 455 

De Beers Deferred 5.50 

; BlrvoKiraitricht «.10 

• East Rand Piy. 7.10 

' Free Stare Gednld 58.50 

Presldeoi Brand - ]"J5 

: President Stem 13.00 

SiiUonieit} 5.20 

, ’ Wc-lkom 4.S5 

; West Dite/onieln 53.25 

'I Western HtHdilUS — +23.75 

'Western Deep 12M 


AECI - 2.10 

Auglo-Amer. Industrial ... S.S0 

Barlow Rand 3.60 

UXA Inves^nents i_T0 

Camp Finance 0.53 

De Beers Indnstrlal fl.43 

I Edgars Consolidated I (tv l .S3 

AlnquuiJOLiii'l’k ' 
Air uquuie.._...! 

61 f 9 *j>\ o.u Arediertanii 6.150 |265 ; 4.U IqmuJne ' 309 

SB-al-aS : £2 ! 6.5 La Morale Hefte .5.170 j+10 305 o.u „5 l L 4 JlJune 

w4tt+0^ ■ 14 1 3.4 PanUoklme. — j2^Uo S.^t 3.r .44 

85.7;+0.1 ULgfr 8.0 2wSg m |W^'i2 , 745 + 26 189 6 9 ’ A'X-GenUhZ) i«5 

Sfes--' ii a ss=sas®-a B 8 sftr — ‘-ill 

i _ i _ ^0« til.40 +23 206 /.U ; 

40.1LZ™. IB 9.0 g3£rg - 1^559 _SS LwHkncaire."!' 215 

sa.Tj.ti a. in ot rraiaaoo B(ecu....iti.«*70 lbU , b.p ..i»K\««.nt» ' nor; 

295 '—8 _ u _ 

309 ii? ’ l£? 3 ? I 

io? i I Crcatennan* Stores ... .. 

Z44 1 ?» e J !"], 'ft Cuardian Assurance (SAt 
SJZ 1S.5 4 1 -at 9 .3 , aulctts - 

l4.7—0ii; 10 

1Z7js _ 


m fig * Ji.X. Cervala™.; iti 5 !--2 j 3/.; II B ; fra 

155 I 7^2 j-44 1 M ,5.0!McCarttoR^«y 

M-l 11 J ! NedBanS 

401 '*"“" " IR Q o 4u(vac™. 2.460 

SB.tT 5!4 in I f. rtraocotteo U.»70 

sli *SLI ^ Hi ■—.■=== 

heonieu tP LlG) ™.j 5B.7;+0.4 ' 10 2.6 ■"•moo weeu. 

NalKedJ oajFl+A j 10U +.. ..9 ;«x2 ; 4.5 ?xn 

Aedt-redtiU (ttSf 61-4+0^, 20 7. 8 ...I i30 

NetUlidtiaiFllK-; lSUrt- ! aQ 6.4 Mntiteg neiL342 

L'w Manoaire..™... 215xd. 12 5.5 I premier .MilllnB -— .1 

*7*^5 5- 6 • 6>5: i'2 I PrelOria Cement — 

orertit Lqiw Friee • 105.1,-0.1 11.) 10 5 pro rM hoUUdks 

Lreusnt Loire j _»0.1 — 1.4 ; 12 ,4.0 Hard Mines Prone rtics ™ 

60 8.1 
100 1 7.4 

r Vl? 

I » 

2» Kti...: 15ft 
VI ism.; <7‘n 
Uii ltd; a Is 
tete*...; 32 
Snteuiie! 65a 

; ti©*« 

wN.Y.I 24 


>LasJ 38,, 
™*cii 8as* 
*i **(|'< 31ft 
*« DlU 26 ft 
■I lletaJ 14i a 
— i . 4a - 

15ft 157 b 
i77n #7+g 
21S i»i 
32 31ft 
eft cift 
tiOft i 20ft 
24 > k5 

llnuUetn 25i a t 24i t tftiUMT JX™J”i 34 

HmWtt, Pftdtudi 69ft ; 69t* PoMtatt. 29 

HoUttaylnna™..., Ms* , 14ft Pooiirti Drug 7ft 

37?; I 381. PenpfteGa* 33J, 

Homt-wall 7 43ft ; 45ft Pejihio ...» 26ft 12 > 12 

HmnilUnviAmm. 32-g . B2ft Iftrkin Brorr ' 18ft 

UraiAuaNaWtta?', 25 ; 26 v+» , t 34 

UuiitilLl.lUin; JU, lift tlij+r . B7Jg 

Hnll.m lift ! 12- Hwlin Unfte—J 20 

Li.lihtiwmea...' 241*. 24 tnutewitina Kie.i ifl 

IN A....™ ,.j 38 : 37ft Ptntip Means ' 87 

InKtnwiHamC...., 64ft ( »3ft miUltw L'cUot’Bii Jf7ft 

lnign.1 *4BeL..™.: Wft ] 37ft _™.i 38ft 

lurtDu J 12-g 1 14ft Huey Uowea.™-i 19 

i!E^™.!»»!y««3? SSSmXKE “5 

IKftSSSi 2- 1 SS ««*__ » 

IIWL Mia 4 Vhew 40 I 39ft Powwc. flxfe.™ laft 

mw. Multttoo**..) mi, tim PPU iwfamrtea- as 

tiuai l»ft 1 Mft Procter Ounwe-i «lft 

Ibil PhDrr. 40ft ‘ 41 -Pub 5err« Went..' 2 «b 

11*1 • 21 

UOP 1 14ft 

I’altoiw 39 1, 

I'nlkvw NV 54ft 
t'dlmi Uancrup .... 13 ft 
Ufllual'trtiiAA.j S9l; 
(j'alim Oral merer; bis 
L’ntim UU Calll.. ' 46 

31ft Inti. Ruiwa..; 49 ; 8B7s 

0ft Inu. 3tta 4 Cbeur 40 1 39ft 
20*1 InU. MulUtowtaJ ill ft ! 21ft 
*6 lui«,... ww . nM ..{ 18ft 1 13 ft 

24ft Inn. psiBnr..™™.! 403, 1 41 

39ft leu™™™— S67g I 26-ft 

aS'i tm.‘ tiedtiHer™™' 7ft I 7ft 
31ft lot, TeL A TN—+ 30 j 30lg 
US') . inren*-™.™™™: jJ*4 ’ 
lii . 27 ft 97ft 

23ft lUlHMmtimi? 11I| :* XllB 
41ft lJteVHatw—^4 SBft t 28H 

1*^;, ,,, MU 1 9K A*U UIJH.. 19 

PofMkv —1 I 26 U5IUN3 Iteiflcn | *5: t 

Perkin Srorr — ' 18ft f 18ft rSiu?t*nminia!"[ 7 ft 

Pci — 3* 1 32ft I'miAl C.ei*. ! 10ft 

Jw-;-"- , 1 U!*llnu«9.™.... 291’. 

Hn+pi ] 20 l’.-v Uyjmun 21ft 

t*bi)ai1M|4ita We. I 19 | 10 l ^ She. 2X‘c 

Ptiitip SIMM ! £7 J 561* U^. M«J.„ ™) 31ft 

reiHipa I'ctibt nil «7ft ( »#ft C.Tediu.iluftltt-1 32^ 

S«wy . — 38ft ; 38ft irr Imlurtrira-.i 18ft 

rtuwy Bowes.™.; 19 loft Vtncinra Blert-.. 14ft 

Pltiatcn 83ft ( 234, Walcrren -....! 16ft 

PMsey UdADKl 17ft , 17ft Watncr-CooiniD .< 3U 

Warner- Lambert [ 26ft 

push*! .] 24 * 24ft 7rHw.Uu>'mrDi] 18 

Paumnc find).™ i6»s i la W’dftFWixn' I 84ft 

folalTW..™™-™ 24 1 24ft 

PtttKMc fltek.™ laft I la 
milwbmrteh. tifi Soft 
Prater OamWr-J (lift J 82ft 
vub Berra w«a..r 2 «b 82*a 

nwi.nm. : BBj, ! SB 

l‘men — — — --I 18ft l 16ft 

(Junker Data Sift ! 21ft . 

Kaptd American..’ 3ft ; 8ft 
kaytheoo 30ft | 29ft 

atv +-1 241s • 25 

MnnbUc tiucL™i 241* i 241+ 

Western Banmrra *0 J £0*« 
Western N.Aanrf S4 23lg 
Wninro L'amn.-.j 16ft j 16ft 
Wretiiftbselilmj 17ft J 17ft 

Wcunyra...™ ; 87 ! 96ft 

VnyerharaiW'.^.! 24ft ! 24ft 

Wlrirlpwl 2Uft 1 2Dft 

Whim Ltan. iDd..; 20ft ! SOU 
William Co~ - — I 18ft < 18ft 
Wtacmma KlecU) 26ft j 28ft 

29: 3 In-u.— ■ 9ft ’ ,* 

Uj-1 . I IeuujJ Au-tiai.. lu'; lOft 

jg], lu.Vjt'iyf’uiai 13.: 13ft 

23 1” ! haeerltew.urxr • Laft . 11!: 
47 ‘ i taum’ifrtlfti '4:4 7ft 

34 j. L*jii* Cv«u*BV 3.40 13.40 

13ft *Sc*ni:is‘a Bawd 16ft 16ft 

1R,„, Uaiiey FeniiMou lb*s lb*s 

j4j‘ U.loij re PoqiQ* 22'., 92ft 

22 7 V lljqirUvtJi, Zsi« tin!; 

lUv U«o_ 21ft . 22 

273a Doreen Lana . 18ft - 18 

20 it, XLhn. Tei nnn — JS5ft tifi 

on. AunecVulCat 18ft ■ 15ft 

£t‘* -Hawooii Ptir'ii et, • 5ft 

!*■« fmerne Copper X. 1.95 ; L9 j 

19ft Paci6cPecn>enn, ^91; * 39ft 

“* fin. tan. fti'r. a2ft 43 

IS** «•**» la : .14^5 

"ft Pmpws Lft^c. -4^0 . 4 JO 

54. BtaoeGnagUi- 093 - 0.96 

Irr* PSaocrttareopnit 19ft • lOlg 

PcnerCarpcnt'n llil; 1UU 

6S0 Price - left ILft 

SJntaoL si-jnem, 13£ l. J 5 

“ft ttansrrOi 27ft: 27-t 

7ft Kean Siuw™ 9 8ft 

7ft liu Aijxuii.j 25ft ' 26 

10ft H.«»i0il.n: Can. 26ft . 26ft 

S9ft 1E74. 16ft . 16 

21- ft 

“J** i*vplit!ie*tpurRi' t ft ' eft 

“ saeiraim i!*»3 22ft 

*“■* shell l.ena , . 16ft lb!« 

J5? 8 aherreuti. Slme* 4.4*1 435 

- 44ft . 34i, 

Mupnn— - 4 7s 4.65 

50. *UeiOU4b*dfc™ ri2?S ti3t e 

“}S stra p £ock I too, ji.SP ti.55 

S’1 IwwiUimn™ 48ft . 47 J, 

loiimu Uoa) Jfct. 17 . 164, 

Irena CanPiwLi 15 15 

Si* Oran* hnim Oi- 9 9 

inac Jl ft He ft 

limn&it..— — SO • Sv 

06ft Waller Hiram ; 08*5 88* a 

Wft A'caLVihW; 38ft • 32fti 

eoft Weafaaueo.™- , 1342 - 13ft 

SOU 1 ; 

185a “Akgeflfefl. t R8L X ASkcd. 

sail fEndas. BKcwsott, 

• tce/tiJsj;. ; 153.5'— 0.8 .A34 I 4.9 

Vau Dmnwien — 143... +3.5 1 B I 5.6 SWITZBFtLAND ® 
Pabii-wiiF *Ji_.! 44^.+w.l 1 21 - 9.3 

F(u>:*aiF..10,™.. 45^ -0.3 ; 16 ; 6JJ Prwxr 1 4- <x 

Ulmbchl orFi.lU 64,'/ +0.7 i — .- j. n £4 f r>. _ 

Koussi irt-30i ; 165.5— 1J| 7.6 1 

KuilUn 115-5 —0.5 ' r — ■— 1 

Awnntiiiiisn U2 80 !+10 

boV«ilinteiii I <U4 le6JS — 1.1 \5u 7.9 jBC 1,690 —5 

aiaveainiR;™.™.., 339-4.+0JI; 19 : 7.6 Uhadei^rfFr.lU^l.llO +5 

MeruiOrp(F<JCi 1+7 . 27 j 3.7 /w tT7CerU_,: 886 +10 

tokyn Pan UidtS.i 90 +0.5 : 4u ' 0.8 Uo £— Z 6il -3 

CpUe.-ercF.Ji3j™' SJfu.7 -0.3 W -fc« Credit Snrtre :>8.fe65 +45 

VttancKea.lHi.3l 43*, 20 1.1 &*««*■« ,11.770 +55 

nesuandm. Hnnk 410 : — 32 3.9 FlanherlGeonse)..! 750 +15 

i ! 1 * ia fa**.- oft nnn_hm 

UwiiBDt Urire-aara.l _gg-l -1-4 j 12 A . 0 Rand Mines Prowls 2JI3 

“*?3 „! ■*■ -L9 lb.US ■ 7 | Rembrandt Oroup - n.43 

rr.PeLrole-, 92.5— 2.6 14. In. 15.3 I r,..™ 0.40 

a ia rent ran;. 
raerin IJrplF.JSCi 
tokyo Pac HidaS.i 

Weatiaadm. Hank; 


Do. Kea, : 6fcl - 

Credit Sntase™™‘2.£65 + 

tincnew a tu ’.1.770 + 

Fischer (Gnome)..! 750 + 

Hnllnun pl.Certi' B8.O00 — 
Du isma< 1....; 0.0 25 1— 

interfooH (J 5.350 ... 

Jonull (7r.lft . |l,fiSE +, 

rr. Petiole* 92.51—2.6 14. Id. 15.3 ; Retco 0.40 -0.01 

UeiuDeevienrai... ,177^s.j— w.B 8.2:. ..Blsatrp Holdings 1.43 

(menu 61 1 3.2a 10.3 ! SAPP1 . ... - — tl.90 +0.08 

4- or j Dn.iYij. J+.-Mues Lore) 90—6 — _ I C G. Smith Stuar 7.00 

— lit Iteanse. : 14e le./7 1 Li ! Sortxr 0.70 

1 L Urem 486 —4 lajb 5.3 ' RA Browerrc* 1.J0 +0.02 

1 i Uunmd 1.Z.BB —12 5I.S& a 5' Tll! ,^ ^is and Nat. lltift. 8.90 -0.05 

+ 10 6 i tiL3 Jialfons Poeain... 632 '.—38 39.r 6 3 1 Duisec .. — — - UO 

7l a|i» Z? m ff i Securities Bund Discount 32% 

+ 10 22 2.5 M utilities™ ■ 132-5 m 3 2 3' ■ — 

—3 22 3.6 Pirito*. U36JSU-1J1 1*4.7 ] SPAIN » 

16 j 3 I PwliLue\ .. 

10 2.9 Penmi-Kldhuil.. .' 185,1 jd —7£ J 12 6.5 

o 3.4 PwiitpoiH.-itrura. i *60 ™ajg 15 5.8;R alieo BUbaO 

o50 U.6 • Sj.0.6-0.5' - Banco Atianxico 1 1,000) 

Price 1 +or I Dtr.’VJrt. 
Kidaierf — : g, t 

I’M. Dos Ilex H.H7S 

, UoriilEon.tUF.tibt. 2,443 
_ Ptreiu SIP.F.100 ■ 270 
/,7 nndta. iKr. £ll)..j3480 

—50 | o6 ] d.6 *“*» fa tarioue.; 30b» \ 8.1 1 Banco Central 

40 3.0 tiwtauto™^..™ — j 477 —7 < 24 t>-0 1 Bancs Exterior . 

.+10 I £0 U ‘inane Pkiuton ™ ; aO.5 +0.4; 9 IB.O j Baniu General 

NeatMT (Fr. 100k.... ,3.000 |+ IB '*36.8; Z.m '*. tnobain > 1113 - 4-.2 ;la.i>b lti.0 J Banco Granada (lJJOO 

+ 10 i« 3.7 »*‘*»Horal«no..™;i.565 

irt,irau>a ptiPf> — I3fl U„ #1 , : io | ijj wadoLiKr.£^«;2JMO 

cunn'iirWjfi — 429l* 16^3.6 ^ V»rX&rtM„.\ 400 

Uunko bank. - lSBft-'+ft 11 ‘ B.s xfalDiHerCurlIX| StZ 

caeJL Antal ic Co™ 242 ;+ ) la ! a.0 3u^er Ifta.P.lOC.i 366 

39' ti.4| Banco Htepano - 

Fvr. Bry Brener - .— — • 

UairlL+aldirik ™... 

••n.-VUTO H.;Kiv 
.*««nj kaiie 1 
J-rtibi ii. — ... .. 
fniulani — «... 
■soph. Bei*od*en. 


-leinuabn . — 1 

Pensumer ™— — 
betnperU— —. - — 

15 6.6 
26 1.6 
S& ti.7 

i29ft.'+ft~* ii ‘B.s befalndlerCuPUX'i 5c2 1+2 V 1-5 

242 :+u ) iv ! so raider it'ta.r.lH. ' 366 1—2 14 [ o& 

115ft! ■ 13 11.3 switaalr (FJra/i...l 822 ,+7 B.67 3.7 

330 ‘—3 Iv 3.6 JWU1 Bank (b.l+-l 4tl4aJ +4 1U . n.5 

SOI,-!, • a 93) sw«a (KeJ'.&O)^ 6,000 +10 40 | ti.o 

143ft ii - Union lMna™.™.-3.e95 + 25 i ou j 4.0 

^Zft'+lft 12 4j» tiurieh !»■«.,.« ™-.l 1,750 + 50 40 | 1.7 
2o5ft — Sift 12 4 7 i ■ 1 

•». m „ 1 o-w ■ r«9 I *ra-T^ I pnn i mq, U4lu ll.WUf 

5.6 retenet m niqoe™. 502 j— 23 Z1.7S 4.3 g. lad. Mednerraneo __ 

1-6 “»«*»« Brandt-! 126 I — 3.5 15.1S 12.0 1 Banco Popnlar 

H.7 Wiw 21.05 —o. IS' — . — r Banco Samander i230) 

1-5 ' i Banco 1,'rqnUo f 1.000* . 

a -B ernrrum aa ' Banco Vizcaya 

3.7 3iulrmuu*i t gjnto Zaragoza no ...... 

Pm«! ; +.n 
Ketiiip . ™ 

"77, v. v,,7. ) Bankualon 

61 i—2 — 

*3sV ii 

371ft 1 — u ia 

193ft f-1 j 12 

iJ ^(miian 

12 ) 52 

13 I 6^ Jan. 2A 

Price | +«■] 
Lire — 

268 L™, 

578 >1 

93 ;+3. - | - 

,. 128^+1.5 
1.020 +20 

oaafajm 405.5+11 — I — 

Ftu - [1-945 +15 150 7.' 

Da Prrv 1.546 +11 lsoj 9/ 

uit . i FuUiter ™___ SOU +4.5 — I — 
“ ■ r iwtrinBoiJ..— 10. 4X01+410 200 l.S 

* Ira wtniiT... lSfiulf+8.8 — — 

1\> l '*& slfrtetanncn™— ■ 3L43jOi+4BO|L2Q& 6J 
•9 j 3L4 Uealeriuon— — . 146 +1 — [ — 

48 • B-3 DHcetU Friv_J 761 +13 — — 

«> 1.7 A-u.\ A,. .Ki.x-s,.; 
- V i» LevaiBiKnc 

AdKAiKr^C. I 


nmerud ™._™.., 

iw-.Yld. Hrtoni — — ~™j 
ire * Dutio — ,1 

— — aiect 'lux >B(h^C 
120)1.8 Kriosna'B'tKrjiC 

— - r— . 

150 7.7 (■aeenmL.. 

ISO 9.7 D range llree:™^ 

Banns .tndalncia — ,™. 
Babcock Wilcox 

180 +7 a.o 3.1 : “ 

lbS |-rt s 3 2 . — 

ffl ii!- 5 | ft.ttLxsrzz 

its tl ‘. ,6 4 S’i'Erti.RmTaaa ^ 

W4 tri i°s. HlBwS -“T. 

137 Li 3 b'4fi:c ru * , ° Velaroue* (400) 

13/ t+3 j s *- e iHldro2a 

225 .it | 8 ' 5-6 1 inmobanU 

8* •+■ B ilD-2joiarra — 

52-5 — l— ,[ Paselcras Kcnntrtan — 

. 105 
. 259 

1 222 
. 304 


. 260 
) 160 
. 2m 

) ITS 
. 132 
. 206 
I 320 

. 202 
. 295 

. 143 


. 120 
. 227 

. 126 

, E 1- Ara jviesas 


— 030 

< Espanoij Zinc 


* Erol. Rio Ttmn j 


- (LSD 

Feosa il.flfflji 


+ OJS 

| Fenosa a.0(Hn 


| Gal Predados 



! Grupo Velazquez 1400) 


1 Hldnria 


— 045 


7bl ?60 i — ; 14.-7 -a. 6 1 petrohber 

fteyr Iftltr.tar—: 193 \ ! *7 | 3J8f PlwIH Spn_, 

[ Veit Mame«» — 

6-2 1 Seta Vtwrew 

761 +13 

-™. 2.020 + 19 
_™. 1,031 + S3 
444.5 +MJ 

300 1.9 Uaratiou f 

— — Mo (Job JJomafcvj 

L20D. SU dsatlvut A-W - 

- - •UC.P.-IfKra™..! 

— — skand BnataWa— I 

110 .6,5 Hurl an k ‘HTiitO : 

80 7.8 Uddefaomi ‘ 

- - Volvo IKr. Sfl) : 

180 a .6.1 mtrolMs 

66 ; 6Ji 1 S.Bjsamo PapaJera ™..„ 

k2*5 +M 5JS3< 8 JS | sauce - - 

74 4 J> 6.1 1 spgeflsa 

135 ,+$ i 3 6^) | Telefonica 

93 +2 

5-4 1 forras Hnacach 

44-5- + 1 i — — 'Totact* ...™. 

74.5, t. 6 1 6 ! 8-0 1 Unlaa Elec. - 

108 — 

4830 — B3B 




(Incorporated in the Republic of South Africa) 



Pursuant to the noi<tc published on 2np December 1077. members are Informed 
that the raw el mMnfe at which payments oi the above dividend are to be 
(icspattiicd hv the United Kingdom Paying Agents on 2nd February 1978. 
11 l Rand of 100 cents canals 59 3276s United Kingdom Currency. The gross 
dividend navabie by the United Kingdom Paying Agents ia therefore equivalent to 

' ,a ‘ t H(iidrrs o! Sharp Warrants to Bearer a* informed that payment of dividend 
No 65 will he made on or alter Jrn February 1978. upon surrender of 
Coupon No. as at the London Bearer Reception Omce. 40 Ho I bom Viaduct. 
London EClP 1AJ. 

Amount payable 
Per share 
tU.K. Currency) 
p'Pt m United Kingdom currency of dividend dcclarod IIS.**"* 

Les-, Seuih African Non-Resident Shareholders’ Tax at 15". ... 17.7983 



Lew L'ulcrt Kingdom Income Tax at 19*i an the gross dividend 

i See Nates 1 and 2 below) ■ . . . 22.5445 



COUPONS mus* nr; listen in duplicate on forms obtainable Iror on 

Ri-.iri.-r Rercrtim Office and deposited for examination on an, MecK-day 
iSjturdav cicceted) at least seven dear days before payment is required. 

London Si rotaries 


on r-Miewjatc. 

London :c:m ike. 

2JrJ .lenuaiv I €75. 

NOTES • 1 ■ The gross amount of the dividend for use for United Kingdom 
Income and Surux purposes is I1B6SS3P- 
i2j Uhdci the Double Taxation Agreement between the United Kingdom 
ana the Rcpubi"; of South Africa South African Non-Resident 
Shareholders' Tf* applicable In the dividend Is allowable u a 
cred-t against the United Kingdom Tax payable in rcsoec: of the 
dividend. The deduction at Lax at the reduced rate of IB** 
instead ot at the standard rate of 54“,, represents an allowance 
o 1 credit al the rate of T5% in respect Of South African Non- 
Resident Shareholders' Tax. 


Finland or 

8‘v 1971-1986 
rlsidrrs o. :n.' as'P*u ni.uuoncd loan 
i-e tern-/ inionncd chic ilifl annual 
nitl rn. n: ol 3U.i. I UUO.OOO.— due 
1 5:h February. 1978 has been partially 
tficctcd b/ repurchase on the market 
a! ;n aCfi'u&ilc amount of 
JU.S.JOD.DPO— -nd partially by 
drawing 0 / lot of the remaining 
SU.S.700 000.- 

Th? ieMovrinf bands navy been drawn 
an 10:h Jcmj.v/, 1978 in the preicnee 
of a nctary pupiic. 

405-5*2 -ncius.. 601-637. 642-643, 
•>47.64?. 652-669. M3I&-U57I. 

U5 T 3-I-16°8. 147C4-14774. 

These bcr.ds will bo r;dccmab!e at 
oar on and ifir ISth February. 1978 
Aith all unmatured coupons attached 

The principal amount or htinus our- 
i sanding after -no amoruzation of 
!5r!i F-J'-ijiv. 19/8 "ill be 
SU.5 10.530.00(1. 

Soctfte Anonyms 

lanuary J5. 1078. 

LOAN OF SUS2S.000.000 
BONDS 91':;— 1975/1982 
unconditionally guaranteed by 
the French State. 

Fi-rti.-r :a the Nst-ce dated January 
17 1978 hand holders are hereby 

rem ibcd th.’t bends numbered 8151. 
aj : 'i jjpr, 333* gjos , 0 8410i 
3122 la Oils which have been re- 
de am 2 n’C '..nts Fearuary tBIb 1977. 
csiarr.v I 0 !h Febmarv 197a and 
. <:-C3i..*nt au.'tuec. hue net vet 

*"ci ere-ented lar rcu.wncnf. 

The Fiscal Agent 


Company registered In the Netherlands 
under Dutch lew with n capital ol 
U.FIS.20. 000-000. 

Registered Office in AM5TEROAM. 
214. Hercngracht. 

Bondholders ol the EUA20.000.000 
Loan B'j% 1974-19Q9 l£iued 
heresy Informed that the amortisation 
ol the EUA500.000 Instalment redeem- 
able on 22 February 1978 will be 
effected by the reimbursement at par 
ol the bands numbered: 

6816 (a 7095. 7100 to 7177 
717V to 7S20 Inclusive. 

These bends will be redeemable as from 
22 February 197B. coupons at 22 
February 1979 and subsequent attached 
and coupons due on same date will 
be payable at the Sallowing banks: 

CREDIT LYONNALi, Luxembourg. 

BURG EO IK. Luxembourg. 

FRANCE. Paris. 

SON. Amsterdam. 

S.A.. Bruxelles. 

Amount remaining in circulation after 
this fourth amortisation- 

EUA. 18.503.000. 

The Fiscal Agent. 





abouc 20,000 sq.m, parkland, 
large villa luxuriously equipped, 
with house for staff, enrage 
building For 6 cars. Price $1.6m. 

SchmMckv-Immobil ien , 
Punchwej 2, D-2820 Bremen 71 
I v pet ii iiie in residential and offica 
buildings also industrial planes. 


(Both companies Incorporated In the Republic of Sooth Atria) 

Further to the dividend notice advertised In the pros M the 18th November, 
1977 the conversion rate aoBficaMo to payment* in United Kingdom currency In 
respect of the dividends listed hereunder. Is £1 vRI. 698631. 

Amount of Dividend U.K. Currency 
Company Dctforod Sooth African Equivalent Par 

Carrencv Per Shura Share 

Consolidated Company Bultfonteln 
Mine. Limited 

Grloualand West Diamond Mining 
Company, Outoftspan Mine Limited 

5.5 Cunt* 
25 cents 

'3. 23790s 
14.71 77 ip 

The effective rate ef South African Non-Resident Shareholders' Tax Is 
13 per cent. 


London Secretaries 

London Office J- C GreensmKh 

40 Hoi born Viaduct. 

EC1P 1 AJ. 

OBrce of the United Kino dura Tramlar Sacretarixat 
Charter Consol I doted Limited, 

P-O. Box 102. 

Charter House, 

Par* Street. 

Adhlord. Kent. 

TN24 8EQ- 

24th Jannarv 1978. * 


i Incorporated in the Republic ol Santa Africa) 

Further to the dividend notice advertised In the Press on the 23 rd November 
1977 the conversion rate applicable to payments in United Kingdom currency In 
respect of tbe dividends listed hereunder. Is £1 - R 1.69883™ 


Amount of Dividend 

Declared Sooth African 

No. 137 on the 40 *6 cumuliHve 

Cn/ToacT Per Sltara 


Preference shares 

too cents 

4 cents 



No. 5 on the 8*i cumulative second 
Preference shares 

The eflecilve rate ef South African Non-ReHdcot Sharnbolders' Tax Is 
1 5 per cant. 


London Secretaries 

London Office: J ’ C ’ Crce "“ 

an Hoibom Viaduct. 

EC1P 1 AJ. 

Office of the United Kingdom Transfer Sccrctarlesi 
Charter Consolidated Limited. 

P.O. Box 102. 

Charter House. 

Park Street. 

Ashford. Kent. 

TN24 BEQ. 

24th January 1978. 

Bonds 1989 
CO. LTD., announce 
Instalment of bonds 
U.S-51 .500.000 have 
redemption on 15th I 

nominal amount of ! 
lutstanding on 15th I 

25th January. 1978 


U.S. C1S.ODO.OOO 1Qi*% Nates due 1980 
Notes were purchased for the Purchase 
Fund during the period 15th January 1977 
to 14M January 1978 which leaves a 
deficiency ol 1.500 Notes amounting to 
U.S. SI .500.000 nominal capital to be 
carried forward for the next six month 
period pursuant to condition a of the 
Terms and Conditions of the Notes. 
Principal Paying Agent 
N. M. Rotter hi Id & Sens Limited. 

New Court. St. S within’s Lane. 

London EC4P 4 DU. 

25th January 1978. 


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Financial Times Wednesday January 25 1978 

How synthetic paper has 
survived the oil crisis 


TO THE average business thetic paper film technology (a Feldmulile in Germany duced by a warn, torn and mai 
executive, marketing man, even lead which was at best de- produces Neobond and Pretex, ked poster, display unit, -o: 
printer, synthetic paper is batable), and tbe then plentiful in the U.S. Dupont makes product manual, me marketin' 
largely an unknown factor. How- supply of petrochemical raw. Tyvek, and in Switzerland there effort required to ?ct a pomf-ol 
ever, it is now becoming increas- materials, to save between one- -is Syntosil and Artosil made by sale item on display is considet 
ingly appreciated by the quarter and one-half of the 1m- Zurich Paper Mills. able, and if the unit retains it 

specialist printer and designer port cost It recommended In the U.K the continuing good looks it will remain exhibi 
as an expensive material special assistance for the syn- success of Polyart illustrates ted for a longer period, 
occasionally necessary for a thetic paper industry and ex- how a more sober product and Based on this kind of applies 

specific job. pected volumes to grow to about market assessment have sur- BXL considers.- that Poi> 

It is important to define what 3 -5m. tonnes of paper equivalent vived the trauma of the petro- aI ^ has a sound future as 

is meant by M synthetic paper.” by 1677. In 1071 Mm forecasts chemical shortage. t specialised product, and ear 

It is either film or fibre based, for 1978 were still as high as Polyart is, in printer's terms, po j nl t0 a 30 per cent, grow! 
The fibre may be formed by, for 2-Snx. tonnes, of which 840,000 a “ glossy art paper.” It is made p er annum in output- to prov 
example, fibrillating nylon, and was for printing papers. By 1972 by Bakellte Xylonite (BXL) at- i ls marketing policy is rigb 
using the resulting material in industry estimates still talked of the company’s Clacton factory', The company is convinced 
the same way as wood-based 750,000 tonnes by 1980. and is based on high density j, as a product which, bocaus 

cellulose fibres on a foudrinier polyethylene. The low density of innate characteristic: 

standard paper-making machine vi7*J D i-oTirra version of this plastic is the mec t s a long felt want in 

(in which a sluriy of fibres and W lUC lallgC familiar “polythene bag. _ number of fields, and intends 1 . 

water is dried into a mat and ^ mainr r 9n , nM 


waier is oriea nuo a mac ana The six major Japanese manu- BXL has other ; forms nf reai ^ thosc markets. 
roUed into paper). Alternatively. fach|rers were producing a Polyart in the pipeline; the ^ markets include ihe pul 
the fibres may i i^ge e ^U^«veiS°t?e whole who wants a pointH) 

or the plastic may be extruded gamut of paper types: from 15 a ow " f ? e ““? JlK sale item which, is durable an 
m S£ u 2± iw. (K:ote, a cheap paper substitute. ^ ^ water, grease, and rear-proor 

into sheets. 

_ , * • 1 r VI A KUB41I II4F« SUU8UWK, - . ... tu wau'l, SM.u-1*." “““ IW|UUHI 

Ttn s basic material for all Miraynart, a high-quality ch ® a prududum manage \vh 
synthetic papers comes from alternative ‘ — - -■- and the company expec.ts it to — .1... ... 

vtuu«»ik ixuui alternative to art paper— ^ the "L,, * Vran^nEnt naDcr wants docuuienlatiou that su 

the, petrochemical mdytry in be5t qulUty prinUng paper .- «U «»-, A vivos the produvl; ,h 

Prices varied from 50 to 300 
per -cent above the paper 

salesman who wants reterenc 

various forms of plastic, such ‘in are beins dC - salesman who ro.emn" 

as nylon, or polyethylene. fir ^. eaL above ^ paper 6 bxl’s marketin" of Polyart literature that will >tny in tb 

It is possible to print extremely equivalent. For this additional * Vr„ P -SSted on the snecial engineering workshop: and tii 
well using flexographic or rota- cost ^ i owe r priced synthetic 5?a rfl( .i«, r i S fi« of the product— customer who wants .1 mai 
gravure processes on many products offered no material ad- ^^ iesistanre durabdiS and season tickeL record card, refe 
different kinds of plasuc film— vantage over ordinary paper. resistance There are some ence manual, or directory th: 
such as pol.TCthyIene, which is w ^ii e the speciality products aDD ri cat jons for which the pro- will resist tearing and dirt. 

?JS gave additionaI characteristics ‘ is ^fque Because of Us In 1S7S ihe BXL factory wi 
prints like P ordinary paper on 2iHhn«M ilanCe t0 WBler ' or therniofonnabiiity (it can be produce 1.500 tonnes »f Pnl: 
an ordinary printing press with msW chan<FPri heated and shaped) it could be art at a European market valr 

the endresult JmUv lonkin? - T* 15 0li 011555 changed the d f or products combining of a hour 12}m. Sonin 50 p t . 
betteT th^^he paper iS vacuum moulding and standard cent, will he exported and : 

fem It the s^e time ft SwS ImLS for the pri " tin ?- Bl “ the !l f 2* ■*"* iuld ° n ,hc hon; 
provides a number of additional cheaper products to compete mar5ietins effort avoided the market, 

characteristics, for example Th^ Sbseauent receSon in Jaf]anese trap nf standin , 2 bacI ! There Is no pri.ducl compel! r 

resistance to ail water «™*aae ilSw +2? « nd waiting for the law of directly with Polyart made 1. 

as wen H '5*L£E1 £ supply and demand to operate, the U.K., alihnush there ai 

toughness ’and dimensiSS Sit wL that Sthfn^' BXL ls . sel f 1 j 1 n S not paper, but sunicwhat sinular plastic lilm 

stability « iL * wnriLi- ««il the results that can be achieved such as mated PVi! Sonic sy. 

It was the Japanese who really °L produce SitsTiTjapS, with * ."J* pr ? <lu ? alIowin 5 papere are impend, hi 
.!»««• with Specialist sales ot.a'Z ^ “ d 

sons range irmn about equal 1 
as much as twice the cost, ar 
the company intends in cxplo 
its dominant market position. 

Probably the most impnrta 1 

business, took it by the scruff thousand tonnes. (Still in. pro- mani ff acture - sons 1 f n,n al ’ 0llt ot |“ al 1 

of the neck— *hen dropped iL duction. these are Mitsui JPetro- . _ f. s much a * lwl ' e l J w cu#t - ai 

Full-scale production of syn- chemical, making Toso Afl VJintaCFP f 5lc «°™P an . v intends in explo 

thetic paper started in Japan in Toughper. and Chji YuJca -^*- u T i is dominant market position. 

197,0 at the 5.000-tonne plant of making Yupo FP). Posters, point-of-sale material Probably the most impnrta’ 

Japan Synthetic Paper. This was By that time applications (printed counter displays and competitor in the U.K. is Tyvo 
the first of half-a-dozen Japanese were reaching the borders of packaging), sales and presen- which is made by Dupont in ti 
responses to the “ Report of the Japanese. ingenuity— paper tation literature, labels and U.S. and marketed in Britain l 
Resources Investigation Commit- decorations, window blinds, instruction books made in Puly- Wiggins Tcapc. . 
tee of the Agency of Science and screens, curtains, computer art synthetic paper last longer. In Europe. BXL says it fan 
Technology ” of 1968 (a unit of and pattern cards, internal par- look better, and overall often hrisk competition in ijcrmaT. 
the Japanese Ministry of Inter- tition walls, even umbrellas for cast less. The material still fmm the papers produced 1 
national Trade and Industry — bunches of grapes! But the costs twice or even three times Feldmulile. but is managing 
MITI). The report outlined the product concept and marketing as much as a cellulose paper bold a market share, 
expected deficit in wood re- logic were off-balance, leaving equivalent, but paper costs are World consumption of pun 
sources required to satisfy the the Japanese synthetic paper in- generally only a third of total ing and writing panel’s is near 
projected increase in paper and dustry too easily susceptible to costs. 40m. tonnes a year. In BXl 

board requirements for Japan changing circumstances. Cellulose paper items that view, success fnr syn the t 

from 9m. tonnes in 1967 to 16m. In Europe and the U.S. the need printing twice as often, papers would be just 1 per err 
in 1977. synthetic paper producers sur- or have to be over-laminated of that total in 15 yenr*' tim 

It concluded that the alterna- vived tbe crisis. For them, no to improve durability or appear- Present world production *'1' s-. 
live to “devastating" national grandiose expansion plans, but ance, normally end up being a thetic papers is only 3.1.111 
resources was to take advantage instead steady market growth lot 'more expensive. More im- tonnes, so there is a lair way 
of the Japanese lead in syn- and technical development portant is the poor image pro- go. 


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■ ? . ! If -, A 

• - -- *•* 

. . ' ■ ■ ' V . : ^ 


U v \ 

* V 

: Financial Times Wednesday January 25 1978 



•Mming an d raw materials 


?ur Commodities Staff 

T 10 pur cent, of tbo fish 
: bj British trawlers have 
returned to the water 
a* they are under-sized, and 
of them die anyway, the 
ons select committee on 
shing industry was told 

istry of AgricuMure officials 
le committee that mortality 
ler-sized fish was higher for 
rel than for other species, 
lought it was lower than 
■ per cent, quoted by com- 
m embers. They said losses 
nersal fish, sucb as fiat fish 
id. were much lower, 
the officials doubted that it 
be a good idea to abandon 
linimum size regulations. 
y said the deterrent effect 
• minimum sizes was .Un- 
it because it encouraged the 
■vation of stocks in areas 
under-sized fish were likely 
3i a large proportion of the 

committee was also con- 
1 that no prosecutions had 
»d directly from Britain's 
recon naisa nee of fishine- 
Ministry officials said that 
ig a vessel was actually 
: when photographed from 
iir presented particular 
Hies, they said, 
re were doubts that proof 
ets were in the water would 
aptable as proof that fishing 
.'tually taking place, 
be meantime RAF Nimrods 
;ing used purely as spotter 
s to notify surface vessels of 
:ted offences. Investigations 
Tests are still being carried 
y the surface vessels. 

an ‘seeking 
gar from 

NEW YORK, Jan. 2<L 
JD SUGAR market traders 
e that Brazil is trying to 
ate a large sugar sale to 

speculation is based on 
e trade reports that 
ry Costa Brazil's Sugar and 
ol Institute export director, 
last night for Iran from 
n where he bad attended a 
in meeting of the lnter- 
lal Sugar Organisation. 

• traders said Iran had 
it at least 150,000 tonnes of 

near lately. 

confirmed rumours indicate 
Sr. Costa also could be 
.•d for Algeria after his 
in Iran. 

aril supplies sugar to 
ria under a long-term 
rnment to government eon- 
. estimated at 100,000 tonnes 


Brazil cut brings coffee 
market confusion 


BRAZIL HAS cut its minimum 
coffee export price to $2 a - pound 
from $2.10 the Brazilian . Coffee 
Institute said yesterday. ■ 

The new price comes into 
effect immediately and wID re- 
main until April 30. The contri- 
bution quota (export tax) is 
unchanged at S120 a 60-kfio bag. 

The news, brought a mixed 
response on the London market 
where dealers could not be sure 
whether its implications ••'were 
“bullish" or “bearish."' 

Some took the a on non cement 
at face value assuming that a 
lower minimum export price 
meant cheaper exports.- • 

Others thought the move would 
have little effect on actual ex- 
port prices, but would reduce the 
discounts offered on Brazilian 
coffee by narrowing the. gap 
between the minimum export 
price and phrsical indicator 
prices, on which the discounts 
are calculated. 

In Rio do Janeiro, meanwhile, 
Sr. Camillo Calzans, the insti- 
tute’s president, said the move 
was nothing more than a techni- 
cal adjustment “to prevent 
certain foreign exchange prac- 

He said Brazil had not changed 
its export policy. If the country 
wanted to make its coffee ex- 

ports cheaper it would have 
reduced the contribution quota, 
he added. 

Rio trade sources interpreted 
Sr. Calzan's statement as mean- 
ing that the institute wanted to 
stop export sales being made 
below the minimum export price. 
They said the actual price to 
overseas buyers would be “less 
attractive " as a result of the 

The inl.tial reaction on the 
London market seems to have 
favoured the “ hearish ” view of 
the news. The March coffee price 
slipped to £1,718 a tonne at. one 
stage before ' closing £45.5 down 
on balance at £1,746 a tonne. 
Dealers said the late rally was 
encouraged by a reappraisal of 
the Brazilian move. 

The possibility of direct inter- 
vention on the world coffee mar- 
ket by a buffer stock has been 
raised at the first meeting of an 
International Coffee Organisation 
working group on stabilising 
prices through stocks, reports 

The meeting follows a pro- 
posal last year by Mexico that 
the organisation should study 
the feasibility of a stock arrange- 
ment to support tbe objectives 
of the agreement 

Talks on intervention buffer 

stocks arose at the working group 
after the EEC tabled a paper 
detailing the many issues that 
have to be discussed, delegate 
sources said. 

The working group has no 
powers to negotiate, and as a 
result its discussions can range 
over a much wider field than 
might be .the 1 case if actual 
negotiations took place. 

The EEC paper which has been 
adopted as a basis for discussion.' 
includes the question of finan- 
cing. whether stocks should be 
centrally or nationally held, and 
the timescale for their intro- 

Many delegates said stocks 
should be considered in conjunc- 
tion with the existing quota 

Some said stocks should be 
secondary, only being used when 
quotas caused a build-up in pro- 
ducer stocks. 

Others said discussion should 
include a buffer stock as a 
primary mechanism. 

Trade sources pointed out that 
as the organisation is due next 
month to start considering an up- 
ward revision in its trigger price 
for the introduction of quotas, it 
is quite likely these could come 
Into force before a stocking 
scheme is finalised. 

Further fall In metal markets 


BASE METAL prices suffered 
further heavy losses on the Lon- 
don Metal Exchange yesterday. 

Tin prices fell by over £100 
for the second day in succession, 
with standard grade cash tin 
closing £107.5 down at £6,067-5 
a tonne. 

The decline in lead contintietl 
and the cash price ended £0.25 
ower at £311.5 a tonne, while 
cash zinc lost £12.125 to a new 
four and a half year low of 
£241.5 a tonne. 

The Fall in copper was rela- 
tively mild, with cash wi rebars 
down by £5.5 to £695.75 a tonne 
— the lowest level for nearly two 

The market was shocked' by 
the surprise move of Kennecott 
in cutting its domestic copper 
producer price by 1.50 cents to 
61.50 cents a pound when it had 
only raised the price to 63 cents- 
in mid-December. 

There are dark rumours that 
Kennecott may have been forced 
to cut prices for its own pur- 
poses and that tbe move may 

not be followed by other pro- 
ducers. • 

It is claimed that the market's 
fairly muted reaction reflects tbe 
fact that prices have suffered a 
big fall and must be “ bottoming 
out ” — an argument that was put 
forward when prices were around 
£700 a tonne. 

Nevertheless, the Kennecott 
move has deepened .the gloom 
in the base metal markets that 
has caused the recent sharp 
decline in values overall, per- 
suading speculators to either 
liquidate their holdings as prices 
descend or to sell the market 
“ short." 

Especially depressing is .the 
steep decline in the lead market, . 
which was previously the 
favourite of speculators once tin 
had lost its shine. - 

Lead has lost nearly £50 In 
the last seven trading days under 
pressure from continued stop-loss 
selling and speculative liquida- 

_ It is a far cry from the situa- 
tion In early December when 

rumours of Soviet purchases 
brought forecasts of prices top- 
ping £400 before the end of last 

Zinc is In a similar state of 
disarray, suffering substantial 
losses partly as a result of the 
reduced value of the dollar cut- 
ting the European producer 
quotation of $600 a tonne in 
real terms. 

The recent meeting of the 
International Lead and Zinc 
Study Group’s standing commit- 
tee confirmed that production 
continues to exceed demand and 
suggested producers should re- 
examine this year’s production, 

Tin is also suffering from the 
general gloom, and reaction to 
the big price rises last year. 

With more plentiful supplies 
available, speculative -interest 
has waned and even some good 
physical buying at the lower 
level has failed to stop, the down- 
ward trend in London and 

raised $25 

By Our Commodities Editor 

Rustenburg Platinum Hines 
announced yesterday it raized 
the world price It charges for 
platinum from S1B0 to $205 an 
ounce, effective immediately. 

The sterling price is raised 
from £96 to £106.50 an ounce, 
allowing for an adjustment (n 
the dollar-sterling conversion 
rate used. 

A rise in the producer price 
of platinum has been widely 
anticipated, although a move to 
$200 was the favourite forecast. 

Nevertheless free. - market 
platinum prices shot up further 
to new four-year high levels 
climbing by $8 to $217, while 
the. sterling equivalent rose by 
£3.8 to £111-40 an ounce. 

Impala Platinum, the other 
major South African, producer 
charging an official producer 
price, said yesterday It was 
watching the situation. 

Bat there seems little doubt 
that it will raise iter price In 
view of the recent sharp up- 
surge in the free market and 
the apparent shortage’ of sup- 
plies to meet demand. 

In December Impala raised 
its price to 5180, which was 55 
above the rise from $162 to 
5175 announced in November 
by Rustenburg, who subse- 
quently moved up to $180 as 

Earlier last year Rustenburg 
cut production, because of poor 
demand. . 

In recent weeks it is believed 
Rustenburg has been buying 
free market supplies to help 
meet demand. . 

seek cheese 
import ban 

By Our Own Correspondent 
CANBERRA, Jan. 24. 
facturers have asked the Govern- 
ment to impose restrictions on 
cheese, imports. 

A meeting of federal and state 
agriculture ministers in Adelaide 
yesterday expressed concern at 
the rising level of imports and 
the effect on the domestic cheese 

The ministers noted that 
Australian . cheese production 
rose by 22 per cent between 
1971-72 and 1976-77— from 81,000 
tonnes to. 103.000 tonnes. 

Imports rosh 44 per cent from 
6,000 tonnes to almost 11,000 


Dreamlike view 
‘green pound 9 c 


smouldering in angry farmers' 
breasts in preparation for the 
National Farmers Union’s 
annual meeting at the Central 
Hall, Westminster, was effec- 
tively smothered by Mr. Silkin's 
defeat on the “green pound” 
issue in the Commons the even- 
ing before. 

But -that did not stop anyone, 
including the president. Sir 
Henry Plumb, repeating the 
speeches they had obviously pre- 
pared in the anticipation of a 
further battle, to make Mr. Silkin 
see the light 

Although the edge of their 
argument had been blunted, like 
a. succession of Olivers they kept 
asking for more. 

Having been a delegate at 
these affairs many years ago, l 
know bow frustrating it is to 
prepare a case only to find that 
at least 50 jother people have 
written exactly the same speech, 
and insist on reading it, regard- 
less of what has gone before- 
But yesterday . 1 was at the 
receiving end. and after the 10th 
attack on Mr. Silkin, the “green 
pound” and the fact that confi- 
dence in tbe industry was at an 
end, 1 found myself drifting off 
into a never-never land, where 
a number of earnest speakers 
were saying much more pertinent 

A worried farmer deplored the 
president's reference to the com- 
petitive power of British farmers 
over those in Europe. What 
would the Europeans have to say 
about being put out of business 
or on the dole? 

Would they welcome the sug- 
gestions, made by Sir Henry, 
that they should be turned out 
of their farms and their prob- 
lems treated not as agricultural, 
but as social regional and em- 
ployment ones? 

Would they welcome lectures 

Sir Henry Plumb . . . repeated, 

on agricultural efficiency from 
Britain where, in terms of popu- 
lation and politics, farming was 
definitely less important than in 
their own countries? 

Would the president, the 
speaker continued, be prepared 
to substantiate his claim that tbe. 
foreigners were less efficient? 

Because otherwise, British 
farmers, by being told they 
would he winners in the competi- 
tive stakes, could be dangerously 
led astray. 

Unlike the other speakers, he 
finished before tbe red light 
came on and was succeeded by 
another worried man. 

He did not see the point in 
raising production when all tbe 
indications are that most of the 
food that can be produced in 
Britain, would only add to the 
Community surplus. 

To his mind small was beauti- 
ful. Tbe short potato crops 
of the last two years- bad done 
him as a grower the world of 
good. What he wanted was per- 

manent shortage, and lots of 

That frank admission nr what 
every 'farmer knows drew z 
bonified gasp from tbe audience. 
No one knew where io look or 
what to say and the confusion 
was confounded when another 
farmer boldly asked for actual 
limits on production. 

That, be said, would keep 
prices up and. at the same time, 
prevent the ruinous competition 
which tbe president so warmly 

Not content with rocking the 
boat, another went on to ques- 
tion the president's keynote 
speech, in which he said that 
British housewives would have 
no objection to paving European 
prices for food, given European 
incomes after tax.. 

Why then, asked the speaker, 
were the ferries to south coast 
ports crammed with European 
housewives buying food ? 

Why did the German hatisfrau 
risk a motorboat journey to ihe 
three-mile limit to floating super- 
marts. where food was to be 
bought at third country prices’.' 

And. asked another, why all 
the talk of exporting to Europe? 

Should not the British house- 
wife’s problems be given equal 
attention, after all she was the 
final arbiter of our production. 
At that point there was a great 
cry of protest from the hall. 

1 opened my eyes to find we 
were back to basics once again. 
The meeting finished with the 
“green pound” nt last, had de- 
plored the fact th3t air. Silkin’s 
review of the White Paper Food 
from our own Resources. iTLtio 
make for selective agricultural 
development, and had just 
passed a resolution recommend- 
ing no interference in the export 
of livestock to the Continent, it 
had all been a dream. 

U.K. sugar beet price raised 


PRICES PAID to British sugar 
beet growers should be boosted 
for this year’s crop as a result 
of the “green pound” devalua- 

.The British Sugar Corporation 
yesterday announced that agree- 
ment had been reached with tbe 
National Farmers Union to raise 
the price paid to growers to 
£20-50 a tonne of sugar beet 
based on a sugar content of 16 
per cent., compared with £20 
last year. 

However, assuming that the 
Governments implements the 
“green pound” devaluation to 
raise the intervention price for 
sugar, growers will then receive 
a further 30p in addition making 
a total of £20£0p a tonne. 

There is a proviso that tbe 
higher price will only be paid 
on production up to 9m. tonnes 
of beet, with the- corporation 
dispensing with the differential 
pricing between A and B quotas 
below that figure. 

In the event of an exceptional 
crop yield output over Pm. tonnes 
will be paid for at a slightly 
reduced rate, reflecting the 
difference between A and B 
quota sugar laid down by the 

Last year's crop is estimated 
to have yielded around 8.5ui. 
tonnes of beet, giving a white 
sugar output of some 950,000 


,cr MCTT *IC Amalgamated Metal Trafltoe reported clow on tbe Kerb si CG.130 following a rATrtA 

vac. (Tit 1 AJLd Ihni In the uuirniiig cash wireban traded fall in ihw East ovemishL Continued bull 

Barley, Sorghum. Oats: unquoted. 

Old reach) 83.0 to mo. 


S ER— Lon ground 

La change. I-uruard 
at 111 reaction 

In active conditions values were trade 

nn !h .. j.mtnn at 022.5. HUW Months MM. 53-5. 53. KL5. ItauidaUnn, cturtiM and selling „ 

m metal «ia-trd 52 51 50. ■». 4a. 47. <8. 48.3. ». 4».5. nuuhed tbo price dnwn to IB.0W before «l mnst D f the day but m a late roily Gloucester X74J0. Pend barley: 

... .vamwT ill the «■ 4S.5. 48, «S.5. Cathodes, cash Ad f met some resistance, in U>c tftcrnwm market regained most of day’s losses, bexmd* CT2.30. Gloucester £70,16. 

uit true reunion and. when V+d Kerti*: Win-bow. itovft months M45.S. Thera was some buying from the U*. and nmrX& GiU ^ Duflns . - 

io iiiiivcd !.«»ct fell away to £647 M. 47.:.. 48. « 3. 49. Afurpuon: Wlrcban. heavy volumes were traded at *6.830. _ . 

i.uchnd ^ wricron In »•«* ££% three months 1830 50.5. 38, Hot on Uw late Kerb ihe ~ .leKriay’vj + ur , 

cTm.f.n Ua -5 t-23i i» n" 4* -5. <S. <8. Kerbs: Wlrebor*. more wiling tod to a diw> of MM. tad COCOA j Close . - : 

TIN— Lower. although forward metal , . « nw. u Mnno _.,1557.0 SfiJI -6.0 TS64.D-22.5 

NGCA-Es farm spot prices January 24. RM _ hr _„. n m 

eed wheat: Humberside £78.00. £tMt <pcr •>«“> 309 -° ® 



• Very Ugh quality produce in Umlied 



per tonne unless otherwise 



■m UK- Kerb at idh.5. Turnon -r 
■•n n> 

EEC IMPORT LEVIES 1— Effective supply. 

“VE" 1- career (prices U sterilwi 
in units of account per tonne. Common packafie matedi— Imported 

Wheal— 57.“ 
wheat— H- 

Y € £?7J? annmtlv"..: tjOBS isO _bb • 6024-50 >-111 Uarteu P 

o iw ' 6060 : — - I in U» riass 

, Strutt. E..I 131660 -18) - mg feff to 

t - 77. - . 60-62.S I ...... v.*. v.wt.! - I 542.50 -9.60 ™lly at ope 

x Limited 01-351 2466. 
out Road, London S1V10 OHS. 

Three month Tin 5977-6028 

in an apparently iiverbnnabt 130.69 <131.fiGv Indicator prices Jan. 24: 

Forward mnal started tower i&day average 137.30 (IOi.S&j: 72-tlay 
■r £22 and during the morn- average 13S.1S ■ I33£3). 

013 despite an unsustamed 

542.50 -9.60 rally at one stage in 017. AUhnUpb £329 

was touched In Uw afternoon the price „ r — - - - — - - 

fell sway again »o 013 as srtlln* pressure Heavy moed ulnag fortx-d RahusMS amts a fcflo iboyer. Feb.!, 
continued with sentiment depressed, and sharp. y lower a bec-tc uadi«. reperm i 

the dose on the Kerb was EUL5. Turn- ETnael Eurabam. News that Brazil tud 
over llJ5ff tramsT towered export reasimoon Price io K.W 

-- from £>.t0 was moushi ta he principal 


; •- • 

• V.. •-.-.■I'.-.i-sksS 



No. oor-i of 

jtnnL "court .»r jiSTict 
i sian Cjnipanu-s Cuuri. In 
~ Mi in the sf-aitet si The 
toll. IMS 

IS HKItEUV Gtt'HN. that a 
th>> Windiht: up of me dtuve- 
puny by the Hutb conn nl 
on the isth da> of Jannarv 
....ted- to Up- paid Conn hy 
Utored office is anuate at! 
*»:- Vtoest 1 Jtv. Walsall Wi-m 
WS 2 TAX. and lhai Uip said 
dtrwtnl to -bo heard brlnrr 
smint: "at tb* Ktwai ttoorrs 
Strand. Lonilan vfm 21.1.. 
d*»- of Febnurr JWR. and 
itnr or cauiTihuinrv of the Mid 
desirous, to Kipaiffi nr vppnsi- 
0) an Order ■ on the said 
mar amejr a* the lime of 
tn mTan nr l*v hr, r0mis-.<>. 
purpose- and j iW n! tk-i 
anil he lumialted bt the untliT- 
any . n-itiiur nr murUMtnry 
.. Ciimi'-inv ti'oiiirinu rnt-ti eniiv 
->« nt the tuwUtvd -cIhtiu tor 


13, Kmaswav. 

. Vhjop wr?u «pz- 

.i-M: WRK. 

^JMienors tor the Ivistmwr. 

■ VAny person who irlcntls tn 
tin* heAritv of Uu< sj:rt Pi'iitmn 
oh. or jutul h> turs to. sh, 
notice m writing of n.^ 
So At Tiio OOllCt? n»Wt -state 
aad xMmi uf the r*’asua. or. 
the. name and ad<lr»9a of die 
Uimt'be. tail hr (Ur. praejn 
kls nr ihcir SoUctsor »« uw. 
be n-rved or. if. pooiui]. must 
by pMi In KtfBi’WlH 1ifm‘ lit 
a bow —named mV laiw than 
if fn th." aftrrrtnon At the 
drUFeiiruarv lOTSt 

AGNEW GALLERY. dS CHa Bona V... W.l . 
0I-iiC9 btrb. laam ANNUAL water- 
colour . exhibition. UnSII 20 Fen. 

JUDI1.-Frf. 0.30 5-da. Tnur* Ji0tll_7 : 

ixtnaiTtON ' of "fine paintings n* 
Oriffyft Sim European At<-i4a trom 1700- 
1385. b-6 CcrV Street London. W.l. 

Tel. 01-734 2S26. WeefcOavs 10-B. 
Sals. 10-1 

Si.. W 1. Modern pa nl"0*. scuiaturi 
■ ■W -rrapinn by Inlirmimi International 
art nt a. wme ranae at prices. Tue*.-Pri. 
TB.BU- 5.1Q. SO IL. 10.00-1 .00 


Keniiiwton So. W. 

, io ThKkerav Si.. 

01-937 5SS3. 

Until 3 Fan. 


EYE. IKO Rc(H>.i( Mint. 734 5675. A '* 
One o» Ali-n Mmu ThrvP SpectaciHar 
Flour Snow. 1 0ats. 1 2 AS 1.45 and 
music til Julmny Hawkeswurth A fnnnv 

GARGOYLE, 69 0»n Sarwi. London. w.T 
- Siiow at Midn.pni also > o.m. 
Mon.-Ftt, CIOWI luuraaii. 01-437 6455 


can be beautifully used it you om it 
fa the National Cbariiy iHCtu the Aped), 
one portion will be moaerniacd tree 
of tort to vou lutuMT i*n-eo«taiiieai 
■ tor your own or your funHllnfl stIOOir’S 
' uir -.or ll.r— tree o* re nr. ra;n. eaierna: 
reDdtrs. Ottier pnrtorrs cemrertytl lor 
retired ocopie. Pie«e write without 
tbllnsimn io- The Secretary. Ho'» »he 
Aa^n HpiuIaQ AoPrjl Room FT 1C. 26, 
Oinm 1 Slrrrt Lonflon W l- 

Delicious ZJHKS.40. Red Delicious S.60-3.0D. 
. Stars Crimson 2^64.20. jam 

ABOUT UNCHANGED Openltu on US pound. Golden Delicious 0.10 
London phrsical market Good Interest Golden Delicious O.U-O.I2: 
m rough the day. dosing on a steadier Delldoue 
note. Lewis and Peat reported that 8.40 
IM alar sian godown price was 201 rSDOl D 

Jan. 34 

+ or 





Free Market (eta) 
Coppenauh ff. Bars 
& numihft do, do. 
Caah L'arhude — _. 
t nimufasdn. do..... 

Gold... ..Troy oz_ 

Laid L«Bb. n 

S months — 


Free Market (efri— 













-5.5 £681.75 
-5.5 ‘1*97.26 
—6 751.670.5 
+0.75: >164.475 
-9.25 0367.5 
-8.75 1*72.75 

kb.967.6 — 1 10.6; l' 6.662.6 

No. I iXwtorrlar'q PrevHhiB 


■.id. i (■: 
OtttoUJ f — 

1LS.S. | cfmw 

c ^i 11 ! | + ° r "n-ason for fmn-srctanJ hi merk« sente * — 

lirwnteiai | — meet. In afternoon values shpped even .. 

iurlhT as New York “ C " CoRtract lorked * -e ‘ > 4S.W-46.H4 45.10-46.9 



Pears— IVall an: Per pound PasBWSVBBane ^ “JV" “ ‘ 

O.OMJ2. Phons— B. African: Santa Rosa 
12/1 3-lb per pound 0J7-042. Erapo*— w. mr.n W r'.] iTa^ir ttfrj? ^ i -110-6 ! 
Spanish: ARneria Cahfumlau: a tTo i^ f-ion 76 

Red Emperor per pound 040: S. African: SK- 0 - 

Alphonse 8.08. Aprlcarta— S. Aftican: Per 

pound 0.3041.40. Peaches— S. African: frr-iucers IS6UD 

3.50. Hoctartns — S African: :.fllK9.40. Oils 

Bananas-^J amaican: Per pound 0.16. Loeuaut fPbili— 


UumoI L'ruri«B* .. 
Palm Malayan^.... 

months OH. ic, 16J. 16. 15 4. n 
Afternoon: Three numrhs £118. 17. 17.5 
IS. a. 10.5. 18. 16. 17.5 17. Kerbs: 
Three months £317, ifl. IS. 14. 15 12. 
13. 1U 14. 14.5. 15. 14. 



Sales: 497 (593 1 tote of 15 tonnes. 
Physical dosjng prices 'buyers' were: 
Spot 45.75p >45 51: Feb. 47p >48 751; 
March 47.25P '47 Dl. 






if Irtil’isi+i* i 

. Uom- ! — J_ 

on- uses, 

ZINC— Caotinned to case for Me same ■January — -1940-1950 -Es.Sfl 1972-1525 
mums u lead with scatlesed ibun- Slwri 474&.1747 1336-1119 

cuvcrlns unable to sicni Ihe fall. Fur- May. 1637-IB39 -<3.50 1665- IS 10 

ward men] started In the- ruut» at U54 Jii’V 1581-1585 -43.50 1611-155B 

and fen away to C43 be lore pictuan up SetitmitM-r.. 1550-1555 —45.00 1575-1540 
to. £2(6. In the afierno'rti the price sub- -%»rp.-cin r .. 1515-1518 — S833 — 

'■lied from E49-X250 in £!l8.5. but w*m* Jaiuain. 147S-1530 -50X3- — 

fresh tmvma oa the Kerb a- a4-llnu dried ; 

SW52L* *** C43 ‘ TUrnW,W liSirimsulilounen.— 

> nut. IS ■ ICO Indlcaior Prices far Jan. 23 tL'JS. il»6 5W.1 tLB- — 

+ ir umi per sound ». Colcmb.-an *4;^1 ij-.:-lx-r - 1 lui. 53*8.0 v a 

■>;i«Tt'4iiu-! i 

tri-man 100.53-1 1.0 + 1.K119.5J1J.' 0 

A;.n — !lv5 2tU5.8. + L20 Ii6i J-:4.5 • -i 5.5 +1.UV : I 7DB.KWM.S3 



I OHH-lal 

+ | l'-l n 
•— • L'iiiifii>.'ui<| — 

'lex ‘‘ ' *■ 

1 P5EL54 -14 -341.25- .76-121 

.' nu-ntlu...} £43.5-4 i - 14 L45-.5 s — .2; 

’'’Until — j. 269 :— 14- — ; 

I'rni.TV'iruJ : • — j 5U.3-al - 

MarntoK: CasJi £2St. 35.5. 39. 
moulhs 1253 54. 5.1 51. 541. «. 4.s. 47. 
40 45. M, -434. Kerbs: Three roonihs 

Arabrji (sa^n 

Arabitjs 2; 9.73 fsemi 
Arabu-oa SW.M Bobaslss 

isaui, '. DaJr average fiS3.:7i. 

LON DOM Alt A SICAS— Prea-surt from 
pcrsuTtni loiu: dealer rc-vons 

Dread Snrnturu Some scmLce®: re- 
tHriiiil in atTemoor: due fo an “over, 
three Laid “ siltuiUor- bu: 14 to 59 lower on 
das. Volume d»^ppc:cu=a. 

Prices tin order buyer seller, chanse. 

newsshad lH.- v::i!-fr....:iL5 0ri6.5 +l.tD Hffi.4D4l4.7D 
other mil S-^rasr. : 165.5 i->,B.D t-ljffi - 


Spanish IB'-tS's 100-3.70. s'^Kbrnn '! U^.“j 

English produce: Potatoes— Per 56-lb, 

WiMus/Reds 12» 1.00. Lcttoce— Per 12. . 

Indoor 1.00-1.30. Cabbaae-Per I -bag 

Prlmo 0.70. Beetroots— Per 28-ItJ 0.71W)«L BBC J S 

Carrots— Per bag 2S-lb 050-0.70 Onions— Home Futures— £73 J 
Per 56-lb L.80-1.40. Calory— Naked M’a » woe 
1.00. Swedes — Per bax Devon 0.45-0 50. rrench Au.3 Am £98 
Apples— Per pound. Derby 0.11. Cox's lVh»t 
O.IS-OJ25. Bromleys 0.U-0.IG. Poars— *o. I lto.1 blinoj:j*:MiS 
Per pound. Conference 0.09-0.14. Cornice Ao2.HardWiaier[ 
0.12-0.14. Soraots — Per pound O.Ofi-O.07. hu^ii^li Million -I 

Parsnips— Per 2S-lb 0 80-1.00. Turnip*— Clvo* dhiumeot... 

Per 2S-!b 050-1 .Op. Rhubarbr-Per pound Future Mty 

- ' LoOee Kuture*.„ 

MEAT COMMISSION — Average tumet: Maa-h. 

prices repreSenidUve m artels Jan, 34. V° l H c, P.’ A "I , ¥* e *" 


+5.0 S557.5 

- ;£597 

- s2SS 

+ 7.0 jS505 

S382.5*i + 2.5 J-3B5 
S240r ,+6.0,5^48.15 




t9S.S- £91.25 

-1.915 1—16.5 - 

£1.494^1—5.5 |l’1.&23.5 



G.B. caUJe 6L46p per ke l.w. (+i.09i: Jubj U ARC j e43f L 1*457 

Snijs: HI >141) lots of lbO tounes. 


London DAILY PRICE for raw susir 

HU U112J a M CM T for Jap-'-eh. J'iT..“^.“lto^^ a tUrV^‘ T b 


:hi,-jincnt. Whitt sugar daily price was 
ttxed at £118 <£!I4i. 
i’arte! opened slightly above Kerb 

U.K. sheep ISO.Sp per KB ML d.c.w. k«fcbw Wli« :45.75t) 

(-■in, G.B. pigs 5B.0p per kg Lw. f+Ll». bUal£ BA3U~..— .|558t>-#0j 
England and Wales — Cattle numbers down J'lfitf ilUvi..... — .. £114 
5-S . per cent. Average ffl-sbp i+2.«5i; "onltr^i 64^ ktUi.„| a67t. 
sheep down 14.7 per cent, average 131. Bp 
7+J.Si: pigs down 0J per cml average NanunaL 

—4S.5;£1. 707.5 

+0.25.47 1. 


+ 8.0 L-105 

! 271:- 

i Unowned, a HeUer-s au.i;=. 

»r whl avenge 61 .Up l +L«i:. sheep Hull. " mlSb.* 

t-ri> -Mar. ' Uarrn-AorlL « t-eh.-Anr-i 

down 26.3 per cent, average 12SJp (+3.2i: 

LM4. «A 43. 44. 45. Alt'-nwuo- Three business y- A Bril 2C9 D5.MAI -R.47.2l4.iW. 1 ..^ a-d further Sa «r piss up S.5 per cenL average 60.0p f+Afil. w March, w Jan. -March, r May r Per 

mffliUjs £20. 50. Mi, SI. US. 53 52.5. 203.00; Jnw, 197.35-197^3. -7.&I. 233.GU- Vi ton. 

— 1 IffSisS. AU2. Ilj.lj-IITM, — SAj. 194LOO- ia tihi* uo and oruv* mlrfclv ii.ri.nui WOOL FUTURES 

LONDON— Dull and featureless. Bache 

■ Pence per kfto) 



ive you ever wondered . . . 

Mfcw^omc pccplc COTsistcnily rTtala: money in the 
correnodity mari«*ts? The first step must be to find the 
^ .... broker — skilfuL wdJ-infomvd erupk^ing the very 

latest analysis techniques — and with an admiiistration 
system ro match- 

St-mJ (or our free handbook "‘Why Prescot ComnxxTilip?.? 0 
or k'L’phone Simon Btn^wn on 01 -242 2142 lorvrangc 
lo came and ine*-i ns. 

Prescot Commodities Ltd 

6 Bloomsbury Square WC1A 2LP. 

Kinv . - - , - — — 




lhilluoi ' 

iii' LiMiL '+ t*i 



— ! t-lcwv ; — 





+ 4.8 257.8:- -tfljK 

n uumilri.. 

263.45 j. 

+J.B5 261.7&I .+ 0.9 

> nnwidi-.. 

+ 4.9 

2 iiumtiie: 

J77,8|. J+4.9 * .. .. 

Address ,, 


PL’jse st.rid inc wur Inv handbook. 

ojhuvd am higher os old crap optiuna. 
_ _ _ . _ „ ^ but found ho buyers as Ihv lj>i. harl.r 

stiver was fixed 4-Sp an aonre tosher was ™ 
for spot detiverv <n thi 1 Loodsa bulUon lassos 
mxrKw jresenUi. at '.'"'P.3;i l J .S. ».vni Jusvci 
i-notvutoois ot inn UsiUk levels were: opuuns . 

Si** 353.20, np it 5c: tloev-ino'illi 313.hc. luney v. 
np 11.3c: jJx-mDnlh 5^.Sv. up !7c. and tTB -n; tr. 

une-pear 543.30 np I2c. The meu! outwt _ 

"J**? **^*£S*MP -sn-'f-itHnS »« lahlng mo*ed h*rh :o orty 5B h-jfter. 
ediMHI M S57)K£3BJi» tSUI-Suein. 

L peruiuue 

Sales: 1.912 cU77i bib: of 2 tuonte. 
Sew crop ftartey. on SfliTCRSivc shipper Tate and Lyle ex-refiaery price i».r 
but inn. i-lob- d fu3y steady j? 100 point* granulated buu. white sugar was £!£L40 
bight whan wheat closed 70-75 btgher i nat ■ a mnne for haiae tresle and 
on tniletcr car.Srttorra. AtreSKh In new fl73 i£i77l for export, 
crop tres due to prosnsed <3 per cent. 

A.isLnniMn . iHirfli) 
(Iteevv VV110I! Cture 

+ w 













+ 0.5 







— ... 


Sales: 5 (same) lots of 1,300 kilos. 

-_ - --- — SYDNEY GREASY (In order, payer. 

. . International Sugar ABrnomeat— Indira- seller , business, uini — Micron Como: 

der-jlua.-ion of the " srecn peund. AcU tor paces fL'.S. cents par pound fab and .March xa.8. 33SJ. 33S^337A May 343.0- 
repons. ao;ral Caribbean MW: Jan. 23: 342 M41 8: JeuTtiTj. 34S.8 348.0- 

E - w ‘ 0 - a:, • .avoraga ATI 347A: Oct- 3SL6. 85B.B. 312-0-351-2; Dec. 

fB-fi.i. 357.0. 337.2. 357.3-350 J: March 3MA 

riHlay for M1-=> 301.1-360.5: May 363.B. W3-I, 36S.2- 
1B 2632: July 3U.0. 367.0, 366,3-366-5, Sales: 

262. L». U. LB. XcrtHi Three months 2E. 


M'uih.' i-.n-e 

! + -r 


VVstnliy '.’+w 
m- . — 

84. IS 



— O.G 

Mac ( 




■— O.EO 

*epl. | 

83 83 




,\w. j 





EEC LEVIES — Effective 

denatured and nan-denatured sugar. 

units of accmmt per !0ft kilns fprevlnas 
la bracfceMu a*o« /««>- *»— v< ‘ 

Ift.19 (19.45L 

****** WAB (E4JRU Am 


Smith Pi ELD ' pence per tnond)— Kori: 


Jan, *.fl| Jbii, jjpiuHlii ^ ' 

£89.36 jaeO.Oft I £S1.GS I 261.94 





J*u. 24 Jan. ila(u,utUi h^j 

Year n“«« 

1403 J) |l4o3.Z | 141S.7 


1031 = 100. 






4iui. 1 MtoUI'j kuaj 

25 ^ | n _... 

■spot .... 

M8. 19346.68 345^7 387.33 
336.17)536.05330.02,381. 16 

(Average MHU-SS-2B=|0at 



1 Jiu. 



1 23 

Hi... ! 

I December si. iBHtrtan, 


COTTON, Llvsrpool— Spor and shipment 

SiKtoi-39 dese-Wbeat: llarch 54 15- Scwch klUefl janes -W.B Io 485. Ulster amoumefl to 1W lounea bringing 

<tiay.vi75 sen: U 15-SLti fuadquartrrs S6-0 to 59.9. forequaRers :hr for the week so lar to l.oM 
-:ui " fc-iw-a ’ - i;ei ‘ Bartow- to W.ft. EW hhxkiuariero 55.Q a Mihuoli tbo o<r-ieka diminished 

’f .iri’b 73 Var r WLT5.4 -* Smi ^-U- foreauafTcrt WJ> to 35.B. • d-.-mand was pcraiitcni. Interest centred ★ 

DtXNOEE JUTE Firm, hul quiet. HW'JJt" Sut. i.iialJ'/ iatv" m ’ L a mb - 1 English ctnaD 50.6 to 50.0, small on 5ftUlh Agerlcu, Middle Eastern and 

iUbtt hi Eij3 fWBTC atiuat saJ ai £2*0 in PORTED— Wheat: C.VR£ Sa. 1 B! 47.0 to 53.9, heavy 36.*t to A<rj«aa OUaliliaS y. W. TatfcreaJJs reports. 

|m tuwa C. c 4ml- f l .K. for Jan.-F1.T1. per ^.ar.. Jan CHS*. Ft*>. and March j* B * S '- 1S ' C * a T <u * l ? Tl .t t ~? 10 beaty _ GRIMSBY FISH — Supply poor, demand 

idiipnRT.l. Cotcnna goods steady. Quota* TJurr. L'.S. Dark Nart’ie.-n Sprlilf! 10 , “®W-’ PH VCfiETA HI C HIT O fatr ‘ ,Pr ™ 11 ship's side unprocessed 

tkjns c and I.ILK. lor January shipment: So. 2 . k iw cent, Jan. Feb .rid Mareh 10 4X0. YLa 4Lfl io «.0- t EUEI AdLC OILS SK» a SK5 M ? ieU C8d tS-M-iMO; evantws 

tn-oonre AiLiarU 419.45. n-aunce rr.iitf u-.T jSLSn mash-pmcei East Cnast. US. Eoehsa. oaoer 100 lbs 33 0 to fz.w-X3.4fl; large haddock C3«LE!M. 

IW yardfi. February X19.M and fl.93, Ran! Wiser Ordinary. A=srral:ar_ Ars*o- <20- 109-120 Uss 33.6 ta.4ij. 128-3 at g» LONDON PALM OIL — dose: Feb. medium X4JM-£4^0. small £3 DO C 50: 
March ao.64 and ik OL B fwdla Ofl.73. um*. Sonet aad EEC Era-ks unquorriL 1M-9 to 3?.9. 270.lBLSW.Bfl, March 270.00.3H3.00, April large Make, mediimi £2 rn- 

«1.M and ni^3 lor Uw respective Blip- Mxteet. U-S.Prebo: Jan. SPS. Peb. Hares: EugWh kuae (each) litLO 10 2HLOO-270 0O. Mar 260.00-279.00, June f3J0, best SBUll I3.60.f3 3th skinned rtou- 

tru-ni iwrtods. Yarn Qod dxk «uleL bn ITs -a. Marti xJM .’rsAMnptbea! Earn 2W 0. 26DJHJ.270 00. July 2tBl.00-270.00, Aog. fish, mediant, XS^Oi h.mnt. laree. 

prices Cm. Coast. S. Airicaa grades caquotctL Partrtdpes: Yckos (each) 17B.0 to 196.6, MO.tHWV6.oa. seax. 260.0O-276J0. £9j». small, fj.flo. 

Grains and 

sugar ease; 

e falls 

NET* YORK. Jan. 24. 
COPPER east-d rpiloviag pri-liict-r price 
deereaw yesterday. Prcelnui ncLdls 
closed sliehib- luuvr on speculative pr»tnt- 
Uking. Sugar L-d$ed nn local scilinu. 
Cocoa cletK’d steady un Cumnussion Hun ?e 
shon-enverma. CnlTei- stu-the-j Lmn-Uuui, 
on lack of physical UL-i-t’ity. Grain.-, ea .etl 
id titnei trading tvuli a lack ol frerh 
news. Bache rep. vis. 

Cocoa— March iJjnj 1 134.63 1. M a v 
126.M H25JI5I. July tl2^|3. S-pl. 
Dec. 11830, March 111. bit. May 113.50. 
Sales: LUC. 

Coffee—- c '' Contract: March 1M.30- 
191^0 HB3 QA). May 175.95-!7r, Hu f 17S.SIS >, 
July 163.1ft. Spdi. 156 1*0 jjfc. J. D-.V. 
143J13 asked. March iv9.13 asked, May 
unquoied. Salc-a: 650. 

Copper— Jan. 57 in ijy.aL. fc*B. 5; 70 
f 3S.T0i, March SS.M. Hay July 
fiO.lO. Sepl. 41.10. Dec. iL.oi). Jjii. iu - iU. 
March 63.9a. Mm 64.W. July uS.Ji). s^pt. 
wi.Ul. Sales: 4.UOO 

Cauon— Nn. March 31i.2Mo30 loj -.oi. 
May a7J5-5(.2U «5C.>9i, July Jy ru..«i 3.'!, 
Oct. 5S S3. Dec. 5VJ0, March iji>.iHL>:u '.'O. 
May (30.40-fll SO. July C0.W-iSl.jfl. Salei: 
335.D00 bales. 

'Gold— Jan. 176.30 iKfl.4D>. Feb. Ui, 70 
I17G.SU), March ITS.iift. ITfi.%. Jun* 
192.00. A’Jg. tSs.70. Ckt. lvI.W. D«. lw j(i, 
Feb. 193. '.10. April 195.00. June If-i.lM. AUU. 
imao. oci. 26s (mi. s -if;. ic.:w). 

tLard— Chicaaft tonte unavaiL t2l.iiu\ 
Now York prime steam traded .J1SD 
mini. 1 . 

JMaize— March 235-3J5: <238 >. Msv '.'3ft- 
2Jt>i >230ii. Jnii’ 2S1. .JJJ, iept. 25fl.-05U|, 
Dec. 23fli. March 337j. 

SPiatlnum— April 4jfl.0fl-j:i>.50 i.' 15.90 1, 
July i34.tllyj2i.3u ■LTS.Ii).. uji. JJSiU. Jan. 
'.‘32JD<2X! jft. Apni -J3 > .-ld-£;i».£u. Sale-: 

r Sllwer— Jan. Suti SO i5-j] flu.. Feb. 5til.u0 
'502.301, March 3W.S0. May 5:2.10. luly 
5 IS. 4fl. Sepi. 521.70. Dec. Jan. 

541 (Hi, March iiO.lfl. May Ju y 
564-30. Sepi. 571 9ft. Sale . Ij.lpuO liaud.- 
and Hannan 499.0ii •• 

__ Soya beans— March 5ro-.i<:u ■57 j.». .‘Up 
577: -379 July .Vo: A uk. isi. 

Sept. 571, No"J. at-.-jiS.. JjQ. 

1 Soyabean Meal — llan.. 1 I52.50-I.i.’.3l) 

>153.70., May 'loo 30 1. July 
159.2u-i5S.5ti. aim. I5?.3fl-!.‘>.ry. 5w:. 

159 00. Oct. 157.', D'.-c. 15S.SU 

Soyabean Oil— March 2 u-.c-Jm.50 i2u r.J •, 
May 20.-15-20.50 00 37'. Julj Ji'.Su-jii.i:-. 
Aus- JD.4U, S i-pi. IS W-Ju Uft. Ot.:. 
Dee. 19.40- !S. 25. Jan ISJIu. 

Sugar— \'o. 11: liarci 9 ‘-fl-u.Si >9.jpi. 
Mas 9 54 iP.SJ ■. lull &SY-IOU0. ii-ui. 
!0 15. Oct. 10j;t-IU-ir. Jar. I0 -IO n-mt.. 
March 10.7T-I«.;u. iv.yft-ltMiu. Sales: 

Tin— ji'j.tffl-jlo.t'ti a-lied « j^U.U'V 354 U0 

asked 1. 

"Whcai— March J73...T3: U.o.'. Hay 
2SQ is»i:i. July 2i5;-J55i. Soft l . 2U!’.. Dee. 
300*. Alarch 31 m.-. 

WINNIPEG. Jan. Jt vftye— May im.eo 
>110.60 tuai. July I0&.7O hid IH‘S.50 hid', 
QCL 103.10 hid, N"V. lflD.50 hid. 

TfOats— Mas 77 . ai b.e i77.3» oid'. July 
jaiO 1 75.50 aifted •, Oct. 7i,ufl a-.kod. 

JHarlcy— :Ja.v 77.7ft hid >75.10.. July 
76. BA bat i76.s») ftihed>. Oct. 75.10 bid. 

SSFlflxsccd-'il ay L' tod >, 
i July 213.¥ft a-ked I214JW arte«l», Oll 
I Jlfi.10 airted. Nn*. 2 ts. 1ft iu»m. 
j Wheat — SUiVBS 13.5 per «-ni. prutcia 
j cn.nca! cis S:. Lawrence 33iti i401i». 

1 Ail cents Per pound es-oyrvnciiLv 
unless olhenvise staled. ■ rs r.-.-r troy 
uiuiM.— llKi oftOvL- lots. T CLuua ^ j I t*o SC- 
SI per lOv lbs— Dept nf As pneva pre- 
vicus das - . Pihii- Sluam ! o.b. NY buiK 
:aor. cars. 7 L't nls pur SC lb bushel «■ 
warehouse. s.OftJ bushel lots, t is pc-r 
irui ounte fur aft ouiiue units 0/ 9L».9 per 
,vi.i purity debt end NY. ■ Oats per 
tror oirccc es-wun. House "New b ” 
contract m ?s u snort ion fur t*uB: lots 
uf 1D0 shun tops delivered f.o.b. cars 
Ctucapa. Toledo. St, Lotus and AUnn. 
“ Cents per tS lb. bushel in store. 
“ Cents per 24 IS>. husbet. =1 Cents pa- 
4S lb. bushel M-warnhouic. r ■ Cents per 
jo lb. bushel, ci-vvar>Jiouw, l.'Xio buJieS 

Knaacial Times -Wednesday 'January 25 197S 



Benchmark for Eastern Europe 


THE $250iu- loan for the Polish 
copper industry, which has now 
been signed, has several features 
which distinguish it from most 

Ei*t European borrowings on the 
international markets. 

It marks a rare occasion of an 
East European borrower being 
established as independent from 
the foreign currency bank of its 
country (in Poland’s case. Bank 
Handlowy) in the eyes of tbe 
U.S. Comptroller of the Currency. 
Further, the terms of the loan 
include more rights of on-site 
infection by Western lending 
banks and more provision of in- 
formation than previous East 
European borrowings, including 
the 1975 Polish copper loan 
(which was a record in this 
respect at that time). 

TOe Erst point means that the 
U.S. lending banks need not 
aggregate tbe loan to loans made 
previously to Bank Handlowy 
when calculating their capacity 
to lend to Poland. 

U.S. law requires that U.S. 
banks should not lend more than 
10 per cent, of their capital and 
reserves to any single borrower. 
“ Since major U.S. banks are 
nearing their legal lending limits 
for CMEA (Eastern European) 
borrowers, especially Poland, the 
Soviet Union and the GDR, 
creation of separate borrowing 
entities would greatly enhance 
these countries' future borrowing 

So says East West Markets 
(EWAI). which is published by 
Chase Manhattan, the bead of 
the lending syndicate. ■ 

Tbe establishment of indepen- 
dent borrowers is a sensitive 
subject in East Europe particu- 
larly since it involves giving 
away a lot more information than 
many are accustomed to provid- 
ing. For this reason, tbe legal 
opinion obtained by Chase that 
the borrower (Kombinat Gor- 
niczo-Hutniczy w Lubinie — the 
Polish copper combioe) is a 
separate entity from Bank Hand- 
lowy for the purpose of the 

Everite looks 
for upturn 

By Richard Stuart 
HOPEFUL SIGNS that the worst 
might be over for tbe severely 
depressed South African build- 
ing industry are evident from 
The interim profit statement 
from the Swiss-controlled Everite 
group. In spite of its normally 
cautious attitude to profit fore- 
casts. Everite states that the slow- 
down in sales over the past six 
months now appears to have 
reached bottom. 

Although volume sales were 
lower, sales by value at R2S.7m. 
were 11 per cent, up on the cor- 
responding period. Margins did 
not come under any undue pres- 
sure, being down from 15.5 to 
14.3 per cent, pre-tax. More en- 
couraging is that operating pro- 
fits were almost 50 per cent, 
higher than for the immediately 
preceding half-year period. 

Comparisons to a certain ex- 
tent are invalidated by the acqui- 
sition of Vianini Pipes for R2.3m. 
within the past reporting period. 
Everite bougbt Vianini from the 
Calan conglomerate, and at the 
Rmc of purchase it was. at best, 
in a break-even position. 

Prospects for the remainder 
of the year arc complicated by 
the performance of Everite’s 
asbestos investment. 

Overall, profits are not ex- 
pected to improve for the re- 
mainder of the year, but the 
low has been reached, and man- 
agement has been expecting a 
significant improvement on an 
lS-monlh view. 

10 per cent* rule — an opinion 
which has been confirmed by the 
Comptroller of the Currency — 
is worth setting out in detail. 
Given the current increase in 
emphasis being placed on this 
rule by tbe Comptroller, the 
terms of the legal opinion could 
also, as EWM puts it, “ serve as 
a useful benchmark for future 
loan agreement provisions." 

The following are listed In 
support of the so-called- “ means 
and purpose criteria" used by 
the Comptroller to determine 

• An undertaking by the Minis- 
tries of Foreign' Trade and Ship- 
ping and Metallurgy, to arrange 
hard currency copper sales con- 
tracts to generate sufficient funds 
to meet the debt service obliga- 
tions of the borrowers. 

• An irrevocable and uncondi- 
itonal undertaking by Bank 
Handlowy, Guarantor of the loan. 

to secure the convertibility and 
free transfer of funds necessary 
to meet the borrower’s obliga- 
tions under the credit agree- 

• Adequate arrangements for 
.regular progress reviews 'during 
the life of the loan. The agent 
for the lending syndicate will 
meet once a year with the 
borrower and the Ministry of 
Metallurgy to review develop- 
ments la the Polish copper indus- 
try during the previous year. In 
addition, there- will be one 
annual on-site inspection of the 
project during the availability 
period, by the agent and repre- 
sentatives of the lead managers. 

• Documentary proof that the 
use of tbe loan proceeds will 
effectively be restricted to 
finance part of the planned 
copper industry expansion. 

The right of inspection is to 
operate for the first three years 

of the loan maturity— the period 
during Which the money is sche- 
duled to be taken up bit by bit 
by tbe borrower- On each occa- 
sion that a portion of the funds 
are drawn, the Poles will have 
to satisfy the inspection teams 
that a predetermined stage of 
tbe -project has been reached. 
By the end of the third year, the 
project Is expected to be in pro- 
duction. Repayments start after 
3£ years. 

The terms of the loan, for 
which Chase Manhattan LtrL, 
Bank of Montreal,' Citicorp Inter- 
national Group; First Pennsyl- 
vania Bank, and National West- 
minster Bank are lead managers, 
include a final maturity of eight 
years and interest rate payable 
at a margin over inter-bank rates 
of If per cent for the first five 
years and 1} per cent for the 
remaining three years. Tbe com- 
mitment fee is li per cent per 
annum on the undrawn balance. 

Split spread for CNT loan 


DESPITE ITS exertions, the 
French Treasury has failed to 
convince bankers that a margin 
of } per cent over the interbank 
rate is wide enough for a prime 
French state borrower. Tbe S40m. 
10-year loan for Calsse Nationale 
des Telecommunications (CNT) 
carries a split spread of 3 per 
cent for the first seven years, 
rising to 3 per cent for the re- 

The split spread is the same as 
on the 5500m. EDF loan recently 
signed, but the maturity is a 
little longer. The CNT operation 
was privately placed with two 
Japanese banks and arranged by 
Sumitomo Finance International. 

Latin American borrowers con- 
tinue to be active in tbe market 
The Colombian state electricty 

company ESA, which Is a reluct- 
ant borrower, is raising $50 m. for 
10 years on a split spread of 
l per cent rlcing to 13 per cent 
This loan carries a sovereign 

The loan is governed by 
Colombian law with jurisdiction 
vested in the courts of Colombia. 
This is a rule with all medium 
term loans for Colombian bor- 
rowers, and one which not all 
bankers are happy with. Such 
concern as there may be did not 
in any way make tbe competi- 
tion for the mandate less keen, 
nor the terms the borrower was 
able to get less fine. Lead 
manager of this loan is Orion. 

Empresas Lineas Maritimas 
Argentines (ELMA) is raising 

$50m. lor seven years on a 
spread of 13 per cent There 
is 1 a sovereign guarantee for 
this loan which is lead managed 
by Bank of Montreal and First 
National Boston. 

Two Spanish borrowers are 
currently In the market Fenosa 
is raising $30nt .for .seven years 
on a spread of 13 per cent There 
ie a three year grace period for 
this loan, which carries no 
guarantee. Lead manager is Chase 
Manhattan Ltd. The gas and 
electricity company .of Catalan a 
is raising $2 0m. 'for six years on 
a spread of 13 per cent Manager 
of this loan are Credit Lyonnais, 
Lloyds Bank International, 
Dresdner Bank, Nippon Euro- 
pean Bank and Royal Bank of 

Intelhorce sale places ENI in dilemma 


A CONTROVERSY has developed 
over proposals by a private 
industrial group to sell a large 
textile concern in Malaga, 
Southern Spain, which was 
bought four years ago from tbe 
State holding company, INL Tbe 
proposed sale of Intelhorce has 
raised questions about Govern- 
ment policy in regard to Indus- 
try in depressed southern Spain, 
as well as the role of INI. 

Intelhorce was established in 
Malaga in 1957 following 
pressure by the local authorities 
to diversify away from the 
region’s dependence upon 
tourism. Despite serious early 
losses, INI persevered with the 
textile plant, promising an 

eventual &500 jobs. However, in 
1972, INI sold out to Barcelona 
business interests that included 
the Banco Catalan de Desarrollo 
and the Castell Group. 

After the sale, lntelhorce’s 
administration and marketing 
operations were transferred to 
Barcelona with in effect only the 
factory and the 2B70 workforce 
left behind. The reasons given for 
now seeking to sell off the plant 
are that a combination of com- 
petition from abroad and in- 
adequate quality from the plant 
itself ‘have created huge stocks 
and reduced .lntelhorce's 

This has produced' a series of 
strikes, sit-ins and protest de- 

MADRID, Jan. 24. 

monstrations from the workforce 
and deputations from all local 
political parties. 

With Intelhorce being put on 
the market, ENI has been pre- 
sented with a . dilemma. INI is 
considered the sole likely taker, 
bat at tbe moment It is seeking 
to pursue a non-interventionist 
policy. On the other hand, it has 
been intimated fo unions that if 
lntelhorce's owners do not find a 
buyer, the plant js likely to be 
closed, with some 10,000 families 
directly or indirectly affected. 
Tbe Malaga region already has 
some 70,000 unemployed, and has I 
the highest percentage of unein-j 
ployed in Spain. 


DM issues 
end lower 


By Mary Campbell 

THE EUROBOND market was 
generally quiet yesterday, 
though in - Dentsche-marks 
there was some fluctuation and 
prices ended the day somewhat 
lower. Selling was, however* 
.mainly professional, dealers 

In the -dollar sector, the main 
interest to-day Is likely to focus 
on the new European Coal and 

Steel - Community issue, 
although, given its Middle 
Eastern flavour, it is not likely 
to be traded as widely as most 
VL dollar EC5C issues. 

Despite the fact that market 
conditions have improved since 
tine issue was announced, tbe 
issue price has been set at 99. 
The coupon remains unchanged 
from indications at S{ per cent, 
putting the yield at 8-57 to 
an investor who has bought at 
the issue price and 8.82 per 
cent to a member of the sell- 
ing group who benefits from 
the full 1J point -discount. 

The significance of the issue 
was that the terms as origin- 
ally Indicated were based 
largely on a comparison with 
the terms on which the recent 
EIR and Enrofima offerings 
had been priced— and these 
Issues fell to discounts larger 
than the selling group conces- 
sions in after-market trading. 
When originally announced, it 
seemed that the ECSC issue 
confirmed an emerging two- 
tier yield structure, one for 
the primary market and one 
for the secondary market 

The combination of the big 
discount in the issue price and 
the improvement in market 
conditions in the 10 days since 
it was announced mean that 
the terms of the ECSC issue 
are in the event much less out 
of Iiiie with the market than 
original Indications suggested 
they might be. 

By way of comparison, the 
93 per cent. ECSC Issue which 
is due to be repaid in 1986 
(a year after the new issue) 
could be bought last night at 
.about 101$, to yield just under 
9 per cent, (though it- could 
probably only be bought on 
a somewhat lower yield by 
those wanting to buy in size). 

- In the D-mark sector, it 
seems that New Zealand's 
DM200m. offering is not now 
likely to appear until next 
week. It. is expected to be 
a seven-year issue and, subject 
to market conditions, is likely 
to offer a 53 per cent coupon. 


' ,.A 

International Paper 
Geor gia Pacific 
Crown Zellerbach , . 
Champion International* 

Mead Corporation 

Gt. Northern Nekoosa 

4th quarter 
+ 2 % 



+ 22 % 





* Reflects net loss from withdrawal from furnishings business o 

Outlook still uncertain / 

- Br sTEWARTnanNcn 1 * new York '.>v 

THE DIVERSITY Of fourth quar---*ecord levels at the end of the •' 

fp r . nertormance snionc msior Thjs surge in housebufld* strongly fiur JpK . in 
tto uTSSpe?Sd|SffS b?! r interest pa* , was by running down- 

forest products industries has adequate supply of mortgage toyentones , the nopmnfl 
underlined the uncertainty about funds and strong demand from On 1 D 
profits in 1978. ■ ■ consumers who have been watcl^ to-one 

The variations are. well ilka- ingtyuse prices rise, combined paper **■*-»* 

tt* ragr « WSJ&L **£, STlf SMSES 

°r more on « 6rag 0. as d* >W ™ MM , 

one of its major competitors, well as- to mcrcase. output _ 

ihntits Sf? Thus y i the performance of lead- real growth in the economy *h U ' 
kast week. IP revealed that its nomoanles in the paper and should translate _ into_ .sfrongei 
fourth quarter earnings jumped^i^S J UC £g industries has re- output and pricing.,- trends tfoi 
by f* per ISrt the* wmmitoentto dE much of the industry, Since the ' 

week,- Crown^elletbach reported rfej ^ nt 0 ? the -overall industry has also been- caution? 

S2^5m^ FoMBie fuffyear!%£ mSket As share analysts look about adding capacity, highe, 
ever, TP showed an 8 per cent 

decline to ?234m^ in spite of. an-: rinuiuce 

improving quarter to quarter PAPER COMPANY EARNlNBS 

trend, and - Crown gwnpvWh - ■ • 

earnings were S per qent. higher 4 th quarter Year 

at S109m. - "■ : ; — ^ 7 — • 

The major companies in the interna tional Paper + 3J *> ~ g *> . 

industry are widely diversified _ . _ I + 20 % +22% 

with their operations' ranging Georgfa Padflc ; — ^ — 

from lumber and plywood for Crown Zelleibach +4% +12% 

construction to pulp, newsprint. — : — . — — ■* ei ZSr 1 “ 

paper and packaging for the . Champion International* —51.?;%, . ^ 

consumer industries. It U thjar . Me ad Corporation +9% . •. +1M%. 

different emphasis of these vari- , — — ; — — 

fying operations In each com- Gt Northern Nekoosa + 2% g/o 

prcSS’blir^ 6 • * net Iob from withdrew^ from tomHbiop briom, „ 

Companies -with a heavy com^ 332m ~ .. ; — — — — 

mitment to market, pulp, for ■ 1 ~ 

t^S t ‘ l noto t Smsly^eI aB ^& the picture is stm cere- operating 

M^ld MtSiLne^^Se end^of P There' is a growing consensus, enable companies to pus. 

t0 1410 C ' 0t that the housing industry has through price increases and a 

me oecane. •- probably hit its peak for this least catch up with last year' 

Similarly, as^ several execu- econoin j c cycle and that the- 1 uni- cost escalation, 

tiveshave noted m their: fourth ber and plywood side of the The optimists recognise tha 

quarter statements, production business cannot look forward lo -their arguments will not b 
of on coated and packaging anot jj er year of surging growth. eqi i a Uy true for the whole pri 
papers bas been weak with the sharp increases in interest rates d uct ran ge. Thus price increase 
result that 10 .are already threatening^, stimu- for coa ted white papers seer 

through much-needed -price j ate 'disintermediation in the Sll j e to •‘stick.” and the currec 
increases have failed. financial markets — that . is *be at te m pt to hoist newsprint price 

In contrast, as Mr. Andrew C. process by which private mves- by around 5 per cent, should aK ' 
Siegler, president and dlief tors channel their funds directly sncc 4cd 

executive of Champion Interna- into money and bond markets _ ' .... d . 

tional points out his company rather than into the savings arid L r 

has been experiencing excep- loans associations which provide 

tionally . strong demand for the bulk of the mortgage finance of courec ilpprS?* 
coated papers— which are used, for homes. So at least some slow- ^ course vmpjnccs 
for example, in magazines-and down In bouse construction is There is, too ; “ 
has not been able to keep up expected even - by optimists, which says that a fundament 
with demand although the construction change has taken place m tl 

There has been no doubt how- already In the pipeline should relationship between paper pr 
ever which has been the out- ensure against a slump this year, duction and GNP. as a result • 
standing sector of tbe market for But the convergence of views the big increases in paper pne 
the industry — lumber and ply- at the lumber end of the market forced through m 1973/74. c 
wood production. • is not matebed in other sectors, this view the industry can eo 

The results of Georgia^aciflc. with analysts still debating tipue to expect its customers 
which is particularly well placed whether 1978 will see stronger e on paper use. pan 
in the construction .side of the demand for paper and packaging by a continued switch to cheap 
business, illustrate the point accompanied by successful moves varieties, and this will comim 
Fourth quarter profits are up 20 to raise prices. exert a depressing mnuen- 

per cent to S65m.‘ end for be Even some of the more on the industry s prices ai 
full year net profits rose 22 per optimistic observers are predict- profits. .. 

cent to $2 62m. on sales revenue ing only 5-10 per cent earnjngs The major companies thci 
of S3.67bn. <1976 S3bn.). - growth -for the paper industry selves will be watching ll 

There is a ready explanation this year. They base their argu- markets anxiously to'see waeth 
for the strength of earnings on meats in part. on the view that this proves to be the case, ai 
this side of the industry. Housing 1977, which saw production rise no doubt hoping that the inve: 
starts rose 29. per cent to almost byr an estimated 2 per cent to meat in cost saving projects w ; 

2m. in 1977, . with the - single 62m. tons, marked a turning begin to pay -off this year a- 
family home, segment- hitting point for the industry— during particularly in 1979. 


Bid Offer 

Bid Offnr 

Nippon Light Metal reconstruction 

pany Ltd. said that its president 
Yashimasa Matsunaga, has 
agreed with the three major 
shareholders, including Alcan 
Aluminums of Canada, to form 
an advisory group to help it re- 
construct Its business. . 

The Japanese aluminium 
smelter is expected to suffer a 
deficit for the current year, end- 
ing in March, os a result of the 
prolonged recession, a fall in 
market prices and the yen's 
appreciation in the foreign ex- 

The two other shareholders are 

Dai-Ichl Kangyo Bank and the 
Industrial Bank, of Japan, both 
bankers to the company. 

• Nippon Light Metal had an 
after-tax loss of YL26bn. (about 
£2.7m.) hi the first half of the 
current year, compared with 
Y6.64bo. in the same period of 
the previous year. 

Sasebo HI cuts 

SASEBO HEAVY Industries of 
Japan — hit by the s’lump in the 
shipbuilding industry — has 
announced a plan to cut costs 
winch, includes voluntary early 
retirement of 1.000 employees. 

TOKYO. Jan. 24. 
or a quarter of tbe company's 

Sasebo, Japan’s eighth largest 
shipbuilder, said that other mea- 
sures it was taking called for 
transferring 600 workers to its 
affiliates, suspension of semi- 
annual bonus payments, suspen- 
sion of annual wage rises for 
most workers, and wage cuts 
averaging 15 per cent for other 1 

The company expected sales 
in the fiscal year beginning 
April 1 to fall 30 per cent, from 
the current year's level' to 
Y68.6bn. Agencies 

All Ok Notes having been sold, this announcement 
appears as a matter of record only : 

Groupement de l’lndustrie Siderurgique 


Alcan Australia SJpc 1989 


Australia Slpc U92 ......... 

Australian M. t S. 9!pc '82 
Barclays Bank 84 nc M92... 

Bowuer Bipc IMS 

Can. N. Railway SJpc 1388 
Credit National 84 PC 1986... 

Denmark 84 pc 1984 


ECS 8!pc 1997 

ElB SJpc 1992 

EMI «pc 1989 

TCrl reason 84 pc 1888 

Esso Spc 1986 Nov. — 

CL Lakes Paper Ptoc 1884 

Hamers Icy fiipc 1892 

Hydro-Quebec Bpc 1992 

ICI Si pc 1987 

1SE Canada SJpc 1986 

Macmillan Bloedel Bpc 1992 
Massey Ferguson BJpc 1981 

UfcfeeUn Bipc UBS .. 

Midland InL Fin. SJpc 1992 
National Coal Bd. 8oc 1987 
NatnL Wsnnnstr. flpc 1SS6 
Newfoundland flpc 1989 ... 
Norges Knm. Bk- 84PC 1992 

Norplpe SJpc UR8 

Norsk Hydro 84 pc 1992 _. 

Oslo flrw 1988 — 

Forty A nrouonn-s flpc. ZS9Z 
Prov. Quebec Spc UK . . .. 
Prov. Saskatcb. SJpc 1986 
Reed International flpc 1887 

RHM flpc 1992 

Selection Trnst Slpc 1898 
SkancL EnsWlda flpc 1991 

SKF SPC 1987 

Sweden fK'dam) 8Jpc 1987 
United Eisctnts flpc 1S88 _. 
Volvo Spc 1887 Man* 


Australia 74 PC 1984 

Brtl Canada 71 pc I9S7 
Br. Columbia Hyd. 7Jpc ‘85 

Can. Pan. Slpc 1984 

Dow Chemical 8pc 1986.. - 

ECS 7>pc Iflsa 

ECS Si pc 1969 

EEC 74 DC 1982 

EEC 71 pc 1S84 

Singer Slpc U»H 99J 

S. of Scot. Elec. SJpc 1881 
Sweden (JTdom) 74pc.l982 97J 
5 wed lab State Co. 7Jpc fa 96} 

Tehnex Slpc 1984 ..... 88 

Tenneca 7ipc 1937 May fl" 

Volkswagen 72pc 13S7 ..„.. % B3i 

Courtaulds 9Spc 1989 964 

ECS Vfl pc 1889 1004 

Em »ipc 1982 — 974 

Finance for Sod. flipc 1987 984 

Fiaorts IMpC 1987 — 99J 

Total On Mpc 1964 — BS4 


Austria 64PO 1985 106 

BFCE Tpc 1987 1044 

Denmark 6Jpc 1983 — 105 

EIB Btpc 1984 1034 

Grand MeL 7 pc 1984 1914 

Hydro-Quebec SJpc 1987 -. 1D1 

ICI Blue 1987 .... 1054 

Montreal 7pc 1887 102* 

Norsca Gas 7 PC 1989 106 

Norsk Hydro Hoc. 19S9 IMi 

Norway Slpc 1932 — im; 

Sben SJpc 1989 107} 

Spain SJpc IBM — . — IMi 

Sweden 64 pc 1984 104J 

Worfd Bank 6ipc 1987 103* 

Economic Labs. 4!pc 1987 77 

Firestone Spc USS SO 

Ford 5nc 1988 W4 

Genera] Electric -Upc 1987 80 

Gillette 4Jpc 19S7 75* 

Gonld flpc 1987 111* 

Cult and Western' Spc 1968 75* 

Harris ' Spc 1992 ; -1304 

Honeywell Spc 1936 — .._ S4 

ia 83 pc 1491 S3* 

IN* 6PC 1997 » 

Inch cape 67 pc 1992 109 

ITT <SPC 1987 74* 

JUSCD flpc 1992 ... IDS* 

Komatsu 7*pc USD 1041 

J. Ray McDermott 4Jpc ’87 131* 
MatEUShJta BJnc 1090 H8* 

Mitsui TJpc 1990 

J. P. Morgan 41pc 1967 ... 

Nabisco aipc 19SS 

Owens mmols 4;pc 1987 ... 
J. C. Penney 4ipc 19W ... 

Revlon 41 pc 1937 . 

Reynolds .Motate Spc 19S8 
-Sandvlk flipc 19SS .... — _ 

Sperry Hand 4jpc iflsr ..... 

Squibb 4ipc 19S7 - 

Texaco 4-lpc 19SS — 

Toshiba 6ipc 1982 - 

Union Carbide 4}pc 18*2 .. 
Warner Lambert 4:pc 1PS7 
Warner Lambert -Vine 19SS 

Xerox Bpc 1988 

Source: Kidder. Peabody 

Jft-i l( 

W 'J 

v>i u 

1131 11 


107 H 

x: j 

103 11 

7H* I 


W4. ! 






Bank of Tokyo 1984 7 is to pc ssf 

BFCE 1984 7pe 03 

BNP 1983 61 pc S3* 

CCF 1983 Spc 99i 

CGMF 1984 flOtepC 984 

Creditanstalt 1984 TJpc 061 

Credit Lyomuis 1982 6Jpc 99* 

DC Bank 19S3 7 XSigpc 991 

GZB 1991 TJpc — 1001 

I ML Wstmnstr. •SA 71Sbpc flfl 

Lloyds 19S3 7, DC 100 

LTCB 1882 6* pc 99* 

Midland 1082 Spc 1M 

Midland 1987 7UUPC 984- 

OKB lSft3 ■ flipc 99} 

SNCF 1995 61316 PC 971 • 

Stndd. and CbrtnL *94 Bine 9 r; 
Was. and Glyns 1984 7 pc 99i 

Source: White Weld Securities. 

Enso Gutzelt flipc 1934 

Gouvertcen TJpc 1882 



97 ' 


American Express 4Jpc '97 
Ashland Spc 1966 



» - 


Montreal Urban Slpc 1981 





Beatrice Foods tipc 
Beatrice Foods 4lpc 







New Brtmg- Prov. Slpc '83 
Now Zwalaml S*pc 1986 
Nordic Inv. Bank 7Jpe 1834 







Borden Spc 1992 

Broadway Bale 44nc 








Norway 7ioc 1982 

Ontario Hydra Bpc 1983 





Dart 4Jpc 1987 .. — 
Eastman Kodak 4lpc 






Bank of 

Established 1817 = 

Dividend No. 477 ■ ' 

Notice is hereby given that a dividend of twenty, 
six and a half cents per share on the paid up capital, 
of this Institution has been declared for the current ' ’ 
quarter payaWe 27th February, 1 978 to share holders : .' 
or record, as at the close of business 31 st January.7978; -. 

Sham not fully paid for by 31st January, 1978--'. 
wm rank for the purpose of the said dividend to the 

ShkHL?! ltlL p ,! Y . naents made on the said on 

or before that date. 

By order of the Board. 

R. -Muir. 

Vice-President and Secretary, 

$ 35 , 000,000 

1977 Extendible Notes Due 1980-82 

Dillon, Read Overseas Corporation 

Algemece Bank Nederland N.V. The Bank of Bermuda Limited Banqne Bruxelles Lambert S-A. 
Banque de i’lndochine d de Suez Banque Rothschild Bayerische Hypotheken-und Wechsel-Bank 
Berliner Handels-und Frankfurter Bank Commerzbank AktiengeseDschpft 

Credit Industriel et Commercial Fuji International Finance' limited Sodete Generale de Banque 
Dean Witter International Yamaichi international (Europe) limited 

Dean Witter International 

Fiscal and principal paying agent 

Banqne de l’lndochme et de Snez 

January 25th, 1978 

; Financial Serv.ces-Portfdlio Management® 

ii‘p * 


V. ■ . - 

Financial Times Wednesday January 25 1978 



I ? A f 
s *i &h 
v v 

t ! 



ahead of 

fly Our Own Correspondent 

NEW YORK, Jan. 24. 

'OlIRTH QUARTER earninss 
( Xerox, the world's leading 
oanuFaclurer uT copiers and 
duplicators have pome out 
lightly better lhau the d1sai£ 

■Dinting result!; management 
ad forecast earlier in (he year. 

>n Wall Street, the share price 
ofte i to S44J this morning on 
he news. 

Earnings for the fourth 
quarter are. SSM.Im. or SI. 1 7 a 
hare, compared with SSOm. or 
:r.n a share in 1976, Managc- 

' nent had forecast that the- ... 

rompany might report earn-' S555m. (S1JI4 a share) compared 
ngs of less than S1.15 a share 
arlier In the year. 

The company said that a 
igh level of equipment sales 
hroughoui the world made a 
Irorrg contribution to fourth 
.uarier results, adding that 
■usincss activity involving the 
ferox 9200 family of dupli- 
ators was the best for any 
marte.r since the high speed 
ine was introduced in 1974. 

It said (hat for 1977 as a 
rbole, placements of leased 
nd sold copiers were 20 per 
ent. higher. Earnings for the 
ear came out at S 406 .6m.. 

55.06 a share) compared with 
i361.7ra. ($4.50 a share), an 
n crease of 12.4 per cent 
The niunber of copies made 
m leased machines rose by 
3 per cent., a slightly lower 
n crease than some analysts 
tad been . anticipating, but 
vorld-wide rental revenue for 

Exxon’s final quarter 
hit by currency losses 

sales surge 

NEW YORK, Jan. 24. 

NEW YORK. Jan. 24. 
SPERRY RAND Corporation said 
its'order backlog at December 31. 
1077, was S2.55bn. up .22 per cent, 
from a year ago. 

Bookings of its computer 

FOREKIN EXCHANGE trims- growth because .Of the impact of Exploration and production 
Inti on losses, stemming from the changing foreign exchange rates earnings abroad declined to 

sharp. . decline in the dollar, on earnings. $1.1 bn. . in spite of increasing r 

particularly in .the fourth quar- Commenting on the operating crude production from the North division were ‘ up substantially " 
ter. have hit" the profits of results, Mr.. C. C. Garvin, the Sea. but refining and marketing in the third quarter with total 

Exxon, the world’s largest oil chairman, said that higher prices operations abroad produced computer backlog up 30 per cent; 

company. . For petroleum and natural gas earnings of S4S3m.. “ up signifi- from a your ago. The large scale 

Exxon reported .to-day that worldwide resulted in a . 7 per c'antly ’’ from 1976. particularly 1100/80 series computer has been 

translation losses of .$265m. for cent rise in earning* in these in Europe. “ well received " 

the year ($205ra. in tbe fourth 
quarter), have cut ^077’s net 
income to 52.4bn. •f$5.3S a 
share). S. 7 per cent. -lower than 
the £2.64bn (S5.90.-a share) 

earned m 1976. . 

Fourth quarter earnings were 

U-S. Anti-Trust eh ier Mr. John 
Sbenefleld told a Senate Small 
Easiness Committee that a 
major civil investigation of the 
International oil industry Is 
underway. Renter repons from 
Washington. The Justice 
Department's new Energy 
Section has begun the investi- 
gation. It was his only mention 
of 'the probe In bis prepared 

New company to replace Unida 


AFTER MORE than Iwo days 
oF intensive talks between the 
Italian slate holding com- 
pany, 1RJ. the Government 
and the labour unions, and 
some seven mouths of contro- 
versial negotiations, agreement 
has been finally reached over 
tbe future of the troubled 
state confectionery group, 

Uni dal. 

The agreement provides for 
the liquidation of Unidal. 
which groups logelher two of 
Italy's oldest . confectionery 
groups Moitn and Alemagna. 
and the setting up of the new 

Slate concern Sidalm. The new 
company, aimed at rationalis- 
ing tlie slate's inieresis in the 
fond manufacturing sector, will 
absorb some 4.000 of the G.0OO 
people who are to be laid off 
following the restructuring of 
Unidal into the new company 

As for the remaining 2.000 
lay-offs, about 1.000 people will 
be re-employed within the IRI 
gmup. and the Government 
guarantees |u give priority 1o 
finding jobs for the other 1,000 

In return Tor state guaran- 

MILAN. Jan. 24. 

lees to maintain employment 
levels, the trade unions accep 
led Ibr- principle uf Inborn 
mobility |n resolve the Unida 

However, at factory level 
the Government-union pad b 
likely in receive a mixed reeep 
lion. The concept of la bout 
mobility, designed essentially 
to promote and protect em- 
ployment in the depressed 
south of the count ry. is expec- 
ted 1o he resisted by (he great 
majority of Unidal worker—— 
many of whom are women — in 
the north of Italy. 

wrlh $6S1 itl (S1.52 a share) in 
the same period of 1976. a 
decline of IS 5 per cent.. 

The fourth quarter, figures 

were weaker than some- Wall 
Street analysts had. been anti- 
cipating and tbe sharps fell to 
$433 following the results. ' ' 

But Exxon pointed out that fines, even . though 

excluding the foreign . exchange volumes were down. 

losses and other financial non- Domestic U.S._ exploration and uil exploration leases. 

The company’s chemical earn- For the third quarter oF 1977, 
ings. a weak sector for most of Sperry reported nel profit of 
the diversified oil companies, fell $39.6m. against $36.7m. for the I 
by 11.2 per cent- re/let-ting stag- same period in the previous year, 
nanl earnings in the U.S. and a This brought per share earnings 
•21.4 per cent, decline in foreign of $1.14 against $1.05. Revenue 
chemical earnings, owing to for the period was $906.1 m. 
rising - operating costs which against $508.7 m. 
could not be recovered because For the nine months, on 
of excess productive capacity, revenue of $2.6bn. against 
Exxon said. S2.4bn. for the same period in 

Worldwide capital and cxplora- the previous year, net profit 
Tion expenditures declined from came out at S117m. .against 
the $5.1bn of 1976 to $4.5bn. in $109m. This brought' earnings 
■ ■ part of completion of per share to $3.37 for the period 

several- major projects, including against $3.13. 
product the Alaska pipeline, and a reduc- Mr. J. Paul LycL chairman 
lion of 3400m in expenditure on and chief executive, said foreign 

exchange losses arising from 

Daf Trucks profit tops target 


EINDHOVEN. Jan. 24. 

' frmi 

Indiana Standard lifts dividend 

operating -items, eurnings from production earnings rose S.9 per World-wide expenditures Tor balance sheet translations were 
operations rose 4.9 percent, over cent, to Sl.lbn., reflecting in part exploration and development of equal to 24 vents a share in the 
the vear to $3 bn., and it advised the start up of Alaskan North new oil gas and ' other energy third quarter r-ompgred with 13 
shareholders to be;. especially Slope operations. Higher costs, sources totalled S3.2bn. cents last year and- 33 cents a 

cautious in Interpreting its however-. reduced refining .and World-wide sales revenues share in the nine months ended 
current financial results or in marketing earnings by 7.9 per totalled S5Shn. compared with December 31. com pared wiih 21 

using them to 'forecast future cent, to S267m. S52bn. in 1976. cents a share in the correspond- 

ing period a year ago. 

Before considering these 
losses, net income was higher 
than last year by 16 per vent, 
for the third quarter and 10.4 

A STRONG increase- In' fourth revenues advanced 12 per cent., quarter ended December 31. be^akt^ ^ ^ months ' 

quarter earnings is reported by from $l2.7bn. to 814.2bn. from $43.9m. or $1.56 a share for. “ Good revenue "ains were 

Standard Oil Company. (Indiana) John -g. Swearingen, chairman corresponding period of achieved in our computer, farm 
he year -rose by 6 per ceou and the directors have declared a Qnd ch]ef executive, commented 10 * 39 ’ 9m ’ or bl ’ 3 ~ a shar *' equipment fluid power and 
earning gome acceleration In quarterly cash dividend of; iQ , hflt fmmti miariep nxniic Revenue totalled S1.31bn. for guidani-e and control busi- 
nesses,” he said. “ A particu- 

a joint venture copper project Tbe directors attribute the was a 41 per cent, surge in form 
Earnings for the loarin i n Zaire dpelim* in M rninn« m equipment orders despite 

quarter of 1077 totalled rt „rninnc fnr iq-- ■>« a of approvimatelv qio-n ■ for in- ■S enera l weakness in the mdus- 

equalto S1.4S a share— Up-SB per Tbe earnings for 19/. as a mappmmuieii biom. for in- 

earn, irom ihe ¥167 7m., orSl.14 a whole reflected better - results creased 

NET PROFIT oF Daf Trucks, the Mr. Van Dourne pninted out. nearly 13.000 trucks in 197 
Dutch commercial vehicle maker, however, ihiu ibe pasl two years’ 12.000 the year before 
was 50 per cent higher than ex- profits are not enough to com- also rose, bv ti per cent., in 
peeled in 1977 ai around pensale fur the losses of record 12.7SO units. The emu 
Fls.30ra. In September Daf fore- FIs 48.2m. in 1974 and 1975. pany still had to limit prod m 
cast that net profits would rise Daf must make a profit in tion levels to hnid Intfn sUicl-> 

to Fls.20-22ui. from F!s.ifl.6m. 197S. the company’s 50Lh anoi- Short time wnrking was n«< 
in 3976. versa ry. to allow it lo star! necessary for the S.BOij wtirkfore- 

The pre-tax profit rose to about building up reserves again. in 1977 compared wiih 1976 whvi 
F!s.5Qm. in "1977 from Fls.19.5m. Prospects for Ibe current year 30 days were not worked. D.\(" 
in 1976 executive hoard chair- arc not particularly rosy, how- Total production capacity i 
man. Mr. Piet Van Donrnc. tnld ever. The truck sector is very 18.000 vehicles a year. Invesi 
a Press conference. Precise depedent on uencrul economic ment spending will rise some 
figures will be given In DaF’s trends and "the outlook is what in 1978 above tin* FK4l»ii: 
annual report due in April uncertain in 1977. 

The improvement was due to Daf. which is one-third owned The t 1 K. was Da TV laryeM 
more efficient working. cost sav- hy Inlernaiional Harvester of export market where M i? Iht 
ings and a nincrease in sales, (he U.S.. increased production to second largest importer 

he fourth quarter. 

Xerox has been keeping earn- 
ngs moving ahead in spite of 
icrce competition whieh has 
ecu its share of (he market 
Irop from over 90 per cent, at 
he beginning of the decade to 
>n estimated BO per cent, now 
>y increasing outright sales of 
ome copier . models and, in 
977, by aggressive Rrice-cui- 

The company itself still says 
hat it can maintain a 15 per 
rent, earnings growth rate per 
ear, but there Is scepticism 
>n Wall Street, with some 
analysts forecasting that com- 
Petition will remain tierce and 
limit growth to nearer lit per 
cent- In 197S competition 
from rivals Infernniioital 
Easiness Mu chines and East- 
man Kodak . is forecast to 

Commenting oil the figures. 
Xerox said that in the ILft, 
1977 revenue rose* by- H per 
rex cm 

from $4.4 bn. to $5.G7bn. 

. . . . . ■ ■ . ■ r-r» uiiu caier executive, comm emeu 

quarterly rash dividend of /0 that - fourth quarter results Revenue totalled $1.31 bn. for 
cents per share of capital stock are a f Urt her provision of the three months, against S1.2bn. 
—an increase of 5 cents.* or 7.7 g30m _ aD investmenT in previously. ' 

interest expenses and try,: 

sharci'rarnelirihe'MrteVptJnd- from’ most’ overseas petroleum Wgher charges for depreciation, 
ing pennd of 1976. Tola! revenues operations, higher natural gas depletion and amortisation, 
were" SS.Sbn.. against . SS.4brL prices in the U.S. and Canada. The higher expenses reflect 
previously. an £ expanded domestic sales of the group s S500m. capital espen- 

Tolal consolidated net earnings r « hn cd products. diture programrae in 1977 that 

fur the whole of 1977 were Meanwhile, front Ashland, includes several projects which 
SUI1J Bin., or $6.90 a share — up Kentucky, it is announced thai will contribute to income later 
14 per cent, on 1976 returns of net earnings of Ashland Oil in 1978. 

S8SS.2U1.. or S6.05 a share. Total Company declined in the first Agencies 

Loan for Basic 
Resources Int. 

NEW YORK. Jan. 24. 

SEAT seeks layoffs as stocks rise 


SEAT. Spain's largest motor car being hit not only by the fail-off will he felt am on- the suppliers, 
manufacturer, has applied lo in demand prompted by iht*. dry- It is csiiuiaicd ih;ti SEAT pro 

place S4 per cent, of its 32.000 ing up of credit, it is also bein'? vide# directly nr indtrccU a 

workforce on short time because affected by competition from the livelihood for some 250.000 
of mounting slocks of unsold cars, other producers in Spain’* pro- families. 

The move appears to have de- lected automotive ' industry, in 

layed until the new year in order particular by Citroen. Renault 
to .smooth any labour problems, and. to a lesser evtenL hy Ford 
SEAT f36 per cent, owned bv and Chrysler. Spven years aen 
Fiat. 34 per cent, bv the State SEAT enjoyed 60 per cent, of 
holdinc company TNI and the the market Ry last October this 
remainder private interests » had hid slipped to 28 per cent., and 
aecumulatfid by early December SEAT hnd conceded i*s rtlace as 
^.nnn unsold vehicles. The market leader ip Renault, 
floure is now believed higher. Under tin.- anplii-atinn to re- 
This is against a norjnal maxi- the wurkinc 
mum slpck nf 45.000 cars. 

Arbed takes 

LlWEMBOliR. Jan. 24. 
AGREEMENT HAS been rvarhvd 
on i he merger or the Luxum- 

. . pek. SEAT is boure steel company Arbed ;;nd 

Cur- seekins tn ensure that workers (he Saarland steel company Siahl- 

rpnr Rtoeks renreseni 25 ner cent, redured wages are topped up ''prke 


coni rolling the 


pf nt.inned 197R nroductinn. bv social «ei-uri1.v pa v ments. r * ^ "J 1 ® , lhe tfr °up. 

CR4T p-'t>niaips thai 1078 nriv- This is the instsnee of such --roetj announced. An agreement 
BASIC RESOURCES Inter- 1 rfurMrn will he is n^r cent down, a move in ihe automotive <pi- 11^. nf^In 

°y*r,°°*il, S h35 1 i° r ' 1 P! ? e ' 1 H™.V„ if ,h» tnr I'nlll nr... s hnrt lime h„ ^ iaf nnnnl.S S'.ie 

SS.5m. financing agreement, 1 rcf*ps«>nn fills in hntinm nut nrimarilv affpfUrl th„ <iooi owners nf " Ncunkircher Eiscn 

Profit upsurge by Armco Canadian Pru 

denies move 

MIDDLETOWN. Ohio. Jan. 24. 
ARMCO STEEL Corporation. said dropped to S3.S0 a share from 
in reporting sharply higher 83.93 while sales rose to $355bn. 
fourth quarter earnings that from $3.15bn. in Z976. 
stmns performances from its Armco said vigorous growth is 
nuK'hinerv. manufacrurim: and also . expected this vear and 

By Robert Gibbons 

MONTREAL. J-n. 24. 

ment extends a Sim. loan from 1 nisiy nrove ontimistic 
Chase Manhattan Bank and pro-] 01 ^ pr0Ve opt,misUL * 
vides for the private placements 
of $4m. or three-year debcoiures 
with Bank de Paris et des Pay- 
Bas (Suisse) SA and Bunk of 
America's Finahai SA Luxem- 
bourg .subsidiary and $3.5m 
three-year, first-mnrigaye bond* 
to an iifve<tor group cuhinosed 

rf-r-p^sinn '’lijs in hnfinm nut primarily affected the steel 

'his industry. 

SKAT i.s sions nf the SEAT shore time AP : D! 

i 3f,pr Thp warier, e-en ^his industry' The main renen-us- W ertv. .\rbcd said. 

Kobokeo earns more 


BRUSSELS. Jan 24. 

Rank Van 
Loo fails 

METALLURGY Hoboken Over- increased to BFrs.170 (lf.m. hut 

muw i nelt. the Belgian non-ferrous 'lie company to-day pointed nut 

major _ Ihal rpcnllc arc .nU-.inH hv ih Q 

Optimism at 

LOS YN CELLS. Jab. 21. 
purred by a -ales Increase uf 
6 per cent, a continulm; im> 
rovemenl in ojicrating 
Otriency and tbe remma) of 
U nua-profiUbtr aperailwns 
tpects to report that net In- 
line far 1977 was about 60 per 
^^nil higher at around $65im. 

— $4.75 a share from the .year 
trller S36-3m. or JS2.H8. Mr. 
i homas V. Jones, chairman, 

V \ : lid. 

f. i\ 

inw rose to 81.69 a'share rroni mism for steel in 197S. 

76 cents a year earlier as sales coming year will have 
increased to SflliMm. from better than 1977. which i 
S744 2 pi. disastrous year for steel." 

For the full ..year. Armco' net Reuter 

The Montreal 
to be separate. 

i metal refiner announces a jump 
place- in nel pmfiLs for 197*5-77 

bflfi j to B Frs.nROm. i £Bin ) from 
each ] p Frs.272m. the ' previous year 

if Quebec were to three-year warrants for „„ 1Jir . JUU , iru , 

hut the company is .SlOfl.iMK) principal amount which Thl ' “j ”„ 0 - , in .■ 

what the recula- entitle holders to purchase Basic! Th s ,ncrf, ase is in line with 
lions proposed for head nacres shares for $6.50 each j etpee*ai inns raised hy ihe earlu*r 

arc and “will lest their cffecis Agencies 
before criiiciRini* 

BRUSSELS. .Ijn. 24. 
BAN VAN LUU ET C1E, a small 
bunk dealing mainly in livcMovk 
trade, has been declared bnnk- 
Fnr Ibe company's basic refin- rupl and ils owners arresied ihe 

Brussels prorecuior announced. 
He aJleaed the hank’s avcminis 

thai results are inflated b> ihe 
sale Iasi year of proper* y assets. 

ms activity, exerulivi-s remain 
sluiiruy about the recent irend 

i annminrcmenl n* a dividend 

Dollar faii cuts Merck earnings 

RAHWAY, NJ.. Jan. 24. 

in praciice 
them.” said Mr. Ian D. Mair, 
president. % 

Mr. Mair said that Toronto 
reports that the company will 
shortly move its headquarter; to 
Kitchener, Ontario. frnn 
Muni real. “ loiai speculaliun. 
Bui the company has finalised 
of a multi-storey 

MERCK and Company said per share, up from 75 cents, on 
foreicn currency translation cut sales of S443.0m., up from 
earnings by 840m. pre-tax in both S4fll.Snfc For the year opera tray 
the final quarter and the full earnings were S3.67. up from «cqin , ;i!ion 
yiiar 1977. with the full after-tax S3.39. Sales were S1.72bn.. up building, 
effect of 13 cents per share from S156bn. This happened two weeks ago 

coming >n the fourth quarter. Merck said 1977 earnings were just after Sun Life announced its 
The company reported fourth aided by the higher ' sales and decision to move to Turnn* 
quarter rarnings from enn- improved operating efficiency. decision now delayed for three 
tinuing operations of $3 cents Reuter months. 

Sales for tbe year were about 
.oflbn. up from Sl-27bn., be 

% C i ■ A'urlbrop’h fourth quarter 

». % t $ i » \ S ^ Us best of the year with 
j i. i ‘ ' «t Income uf about $l7m. or 

^3 a share, up from the 
1 or aqo S13m. or 51.13. Mr. 
. - fles said. Sales rose lb around 

. 47m. from S351.4ni.. he 


Mr. Jones was optimistic 
on! the rii versified aerospace 
(tcern's outlook for the rnr- 
ni year, bin cauliuned fha't 
?. sire of tbe (•amines cams 
aid not be repealed. 






Faufift Quarter 


Ne» Profits . ... 
Nel. Per Share 

Net Profit* ■ 
Net Per Share 



7J ,4m! 


Second Ourter 






496m, Revenue . 

69.7m. Net Profits 16.8m. 14.1m. 

0.75 Net Per Share 0.79 0.65 

SI* Months 

1.84bn. Revenue 831.9m. 799.7m. 

23C.9ni. 2369m. . Net Profits 

2.42 2.60 Net Per Share 1.47 



i «*sar* 

t *- 
r i j 

p ; v ■') tijil ^ 

r i 

$% j- r, l 
r >: < t 

’ayout up 
t Con. Ed. 

NEW YORK. Jail. 24. 


pany of New York salt! its 
ard raised the quarterly 
Idem! to 35 cents per sharp 
tq 50 cents, payable March 

Die company raised i«s divl- 
id from 40 reals last 

’on. Erf. reported unaudilrd 
income Tor common Mock 
197? of S279.<tm. or <4.52 a 
ire against 1976 reMilu itf. 
or SIJS. 

^‘flie company roaiinues lo 
. : ,v Iclpati* a furllier decline In 
“i ' '8 earnings which it pre- 

usiy announced and that 
* decline could be sub- 

, company reported net 

, 4 /iji raw lor commun stuck tor. 
» -. i ■ * fourth quarter uf 1977 of 
; i ‘ t ' ' »-6m. or 715 cents n share 
* unjif S54.6m. or 89 ceuLs. 

FoorOi Onartcr 


Ntil Profits 

Nd Per Share 


Not Profit* .••• 
Nd Per Share 









UH *l«t .Ourter 197* 

S 5 

Sgttuv Revenue J5Sn>- 

23.3m. Profils 12.4m. 

L61 P e F Share 2.31 

1.55 bn. 

SI. 9m.' 







* s 


; TMrt Quvirr 








Nel Pruitts . . 



Met Per Share 



Ntoe Homta 



230 m. 

Net Prufit* 

16 6m.. 

16. 3m. 

Net Per Share 

2 04 



Fourth Quartet 





553 6n>. 

Ni?» nmfils 

63 -Sm. 

5S Oni 

N -f i>cr share... 






Nel profits 

222 Oin. 


Net ;m share. . 




fttnr* Qurtar 





Nel Profits ; 

27.9 m. 


Net Per Share 



. Vwr 




Net Profits .. :. 



Net • Per Share 




Fourth quarter 








Net Profits 



Nei Per Share 







Net Profits 



Nel f*er Share 



124 LE.1R S1EGLF.R INC. 

Ftuu-ia Ouurlrr 

.Net pruBis 
Nci pt-r share... 

-Nci profit* 

Net per shave. . • 




691.9 m. 


587 Jm. 



Bucd on a provisional sorrtnent ol ihe accounts as of December 
31, 1977. the romuany's unconreltdntea not assets am oun ted to 
UA S7 7. 1 73 ,008.72. it US.SMOJS (of each of the 79C.CWO ?k-fps 
of U5 Sid— making up the company’s capftat for tbe fiscal 
7<ar, ehs corresponds* to an increase at 2.58? « and of 4.68%. 
if the coupon of U.S $2 25 p-iid on July I, 1977 is taken into 

in 1976. the unconsolidated net asset value bad increased by 
•3 29?, or IS 56^ if she dividend paid during th'e year 1976 is 

•The consol itia icd net asset value per shire amounted as of 
December 31. 1977 to U-S.Sn9.56. 









Net Prufils 



Net Per Share 


m» Hmhiu 




Net Profits 



Net Per Share 




E«*rth Quarter 








Net Profits 


5.7 m. 

Net Per Share 






101 bn. 

Nel Profits . . 



Net Per . Share 






Fwwth. ■Quarter 








Fourth Quarter 






_ 272.4 :n. 


Net Profits . 



Net ■ Per Sha 

re 0.94 

0 M 

Net Share tiii 






1.1 jn. 

Net Profits ... 



Net Per Sha 

re 6.52 


Net Snare d;l 




Fourth Quarter 






.. 521 9.1,. 


Net arofi!? .... 

9 7r.i. 

v 2.45::i 

X«*t per share. 




Reveosu ..;.... 

. 1U7 6.T.. 


Net profits .... 

.. S.2m. 

5 .Sin. 

Net per share. 





Fourth Quarter 





profits .... 

. 30.0m. 


per share. 




Net profit-. .... 

. Ill lm. 


Net per share 

2 SO 



Fwwsh Quarter 


1976 ] 



Nei profils - 


5.5m J 

N’**t per share. 





. 317 Sm. 


Net profile 


20. Sm 

Net per scare . 












Nel Profits 

Si. 9m. 

56 3:n 

nf prirev which alih*»u'.-h ehnw- had been foiacrt fnr 10 war-, ui 
ins some impriivemonf from fhn hide ils mial |n<si?s. psiunaicd :il 
sl»rt ul 1977 rpsi d^nrewi-ri amunrl FrvfiOftm. Aqnnrict 


<2Ji J-lJj — ' 

U.S. $54,000,000 






Net Profits .. .. 

No! Por Share 

Revenue 104.5m. 

Net Profits- 275.0U0 

Ncr Per • Share 0.04 

FoarU Quarter 






2SS 5m. 


Net profits : 



Ne* per snare... 





. Mbs. 


Nei profits 



Net per share... 



Rt M» ro. { 

fttortft Ouarter 





2^5 lm 

Net pruSts 



Xrt per share... 


1 09 




t im 

Net profits 



-Nei pur.aiare... 






























NOVS&TBSR 2S, 1077 


Financial Times Wednesday January. 25 197S 

Gilt-edged and equities drift lower on lack of buyers 

Index sheds 3.2 to 483.4— Golds firmer— Platinums good 


Account Dealing Dates 

■First Declare- Last Account 
Dealings tionx Dealings Day 
tan. 16 Jan. 26 Jan. 27 Feb. 7 
fan. 30 Feb. 9 Feb. 10 Fob. 21 
Feb. IS Feb. 23 Feb. 24 War. 7 

* “ New time " dealing* may take place 
ram 4J0 a.m. two business days earlier. 

British Funds lost a little more 
ground yesterday. No selling 
pressure developed, but buyers 
remained on the sidelines with 
institutional imestors apparently 
-.Ml omtonl in build up their 
liquidity ratios. Alter a steady to 
lirm sun. prices came back 
r, cross the board to register tails 
m ; ami both ends of the market 
were casing further in the inter- 
njlico trade. The Government 
Securities index eased 0.33 to 7U.67 
fur a three-day reaction of 0.BIK . 

Kl^ewhere in slock markets, 
continued absence of support also 
!cl't widespread small falls in 
le.idiiiQ equities! and the FT 
Industral Ordinary share index, 
dnuii :'.5 at II a.m.. closed at 
-jstf..] for a loss of 32. Falls in 
the constituents again rarely ex- 
ceeded twopence. 

The day’s lisl of trading stale- 
mcnis was again small, but prn- 
iideci dull features in Carpels 
International. S off at 47p. and 
Davy International, down 12 at 
L'.TJp. on disappointing interim 
reports. Overall, falls and rises 
in FT-quoled were evenly 
matched, but Ihe downward b«s 
was seen in a further slight fall 
in the FT-Actuaries All-share 
index at 212.54. Few sectors 
moved acainsi the trend, while 
Stores and Hire Purchase issues 
showed above-average losses des- 
pite recent reports of increased 
consumer demand this year. 

Gold shares. made further head- 
way w ith the investment currency 
premium and the bullion price, 
but Wininu issues were featured 
by a further advance in Platinum 
shares w hich were helped by news 
that Rustenburg has raised its 
minimum selling price for the 
ir.eial b> a near-14 per cent, to 
8203 :<n ounce. 

Official markings amounted tn 
6.132 as acainst Monday's 5,404 
and the week-ago 0,194. 

Gilts deteriorate 

Lacking in both investment 
demand and enthusiasm, the 
market in British Funds was 
obviously sensitive to selling 
which, although of little weight, 
loti stock none loo easy lo plare. 
A continuation of Monday's easier 
trend was thus at must unresisted 
and 3.30 p.m. losses of \ were 
extended in business after the 
official close by another t or so. 
The possibility of a small reduc- 
tion soon in Minimum Lending 
Rite tent no support, potential 
buyers being nervous throughout 
and shying away at each phase 
uf the gradual deterioration in 
values. Ssill basically untraded, 
the long tap Exchequer III! per 

cent 1995 was lowered } more to 
29 which, in £30-paid form, repre- 
sents a point discount on the 
issue price. On this occasion. 
Corporations followed the down- 
turn in the main funds and closed 
with falls ranging tn J, but 
Southern Rhodesians bonds 
retained their firmness although 
interest was extremely light 

in a near repetition of the 
trading conditions obtaining 
over the past week and more, 
the investment currency premium 
moved higher. Renewed Institu- 
tional support was again only 
partially met with the result that 
closing rates were near the best 
or the day at 83 per cent., up 2} 
points on the previous night's 
level. Yesterday's SE conversion 
factor was 9.7341 (0.7453). 

Home Banks- easier 

The major clearing banks lacked 
support and consequently drifted 
lower. Nat West ended 6 off at 
290p and Da relays 5 down at 345p, 
while Lloyds and Midland were 2 
lower at 29Up and 400p respec- 
tively. Foreign issues, on the 
other hand, made progress in line 
with inveKtment currency influ- 
ences. Hong Kong and Shanghai 
put on 7 in 23Sp and AJgeraene 
added 3} points at £102. Discounts 
hardened in places with GiUett 
Bros. 5 up a> 255p. Union held 
firm at 473P the preliminary 
results arc due to-day. 

Interest in Insurances remained 
at a low ebb. Sun Alliance gave 
up 4 more to 572p and Guardian 
Roval Exchange cheapened 2 to 
248p as did Royals to 410p. 

Scottish and Newcastle returned 
10 favour in Breweries, rising 3 
lo a 1977-78 peak of 71 $ in 
belated response to the proposed 
beer price increases. Davenports' 
were active and 4. better at 95p 
following fresh speculative de- 
mand, but Matthew Clark, 
another recent speculative favour- 
ite. eased 3 to _!44n. Elsewhere. 
Amalgamated Distilled Products 
closed a penny harder at 38p on 
the interim dividend and return 
to profitability. 

Movements or any consequence 
were rare in a lethargic Building 
sector. McNeill Group rose 6 to 
54p on buying in a thin market, 
while Aberthaw Cement added 2 
at 164p and Ben Bailey hardened 
a penny to 13p. 

-Still drawing strength from 
investment comment. Inter- 
national Paint added 3 more at 
73p. Elsewhere in Chemicals. IC1 
settled unaltered at the overnight 
level of 346p. 

Persistent small offerings in 
an unwilling market left Store 
leaders at the day’s lowest and 
Gussies A shed S to 294p. while 
Debenhams slipped 3 to 107p. A 
particularly firm market of late 
reflecting asset value considera- 
tions. Burton Ordinary softened a 

g enny to Hip and the A 3 to 127p. 

1 sc where. Hendcrsun-Kenton re- 
acted 0 to SOp on nervous selling 

ahead of Friday's first-half figures, 
while Status Discount cheapened 
3 to 133p in front of to-day’s 
annual results. Cope Sportswear 
fell 7 to 75p in a thin market, but 
Allied Retailers gained 3 to 19Sp. 
Allred Freed y were a similar 
amount better at Sip. 

Apart from Thorn, which drifted - 
back 4 to 3R8p, Electrical leaders 
were rarely altered. Elsewhere. 
H. M'igfall encountered occasional 
profit-taking and eased 5 further 
to 258p, but Content Radi oration 
improved 4 to lOSp making the 
offer For Wig fall worth just over 
243p per share. Buyers favoured 

respectively. Associated Dairies 
fell a to 233p, but Avana attracted 
renewed support and .closed li 
harder at a 1977-78 peak of 34}. 
Geo. Bassett edged forward a 
penny to l57p on Press comment 
outlining its takeover appeal, 
while other Confoctionets in pro- 
minence included Needier^. 3 up 
at 33p, and G. F. Lovell, 7 higher 
at S3p. Bluebird Confectionery, 
a firm market of late, shed 4 to 
175p. Pork Farms improved 4 to 
4l7p following the appointment of 
Mr. W. NewtoD-Clare' to the Board 
and Glass Glover firmed a penny 
to 26p on the increased earnings. 





TTTTi 7 ! 

f 1 — 




Crellon 3 to the good at 32p, and 
Wes tin gho use Brake, a penny 
better at 49ip. On the other hand, 
Raeal met with scattered selling 
and gave up 4 at 21Sp. Similarly, 
BICC eased 3 to U3p. 

Interim figures well below mar- 
ket expectations prompted marked 
weakness in Davy International, 
which reacted quickly to r '~p be- 
fore relying on bear closing to end 
232p Tor a net fall or 12.' Else- 
where in Engineerings, sporadic 
demand left BraithwaKe 4 dearer 
at 150p and Butterfield Harvey a 
similar amount better at 67 p. 
Wbessoe were favoured rt 97p, up 
3. while rises of a like nature 
occurred in P. Brotherhood, IlSp, 
and Manganese Bronze, lOlp. 
Smaller-priced issues to make 
headway, included ilahit Precision 
Engineering, up 2 at 25p. and West 
Bromwich Spring, a penny higher 
at 34p. In contrast. W. G. Alien 
gave up 4 to 48p on the half- 
yearly profits setback. Rotork. a 
Arm market of late, came back 

2 to l2Sp along with S. Osborn, 

3 lower at 78p. Leading issues 
rarely strayed from overnight 

Tate and Lyle lost 2 more to 
204p for a two-day fall of S on 
nervousness about 'to-day's pre- 
liminary figures and Fitch Lovell, 
which reports Interim figures 
to-morrow, eased a penny to 62p. 
Linfood. I39*i. and Rowntree 
Mackintosh. 390p. lost 3 -and to 

Press comment directed fresh 
attention to Wheeler's Restaurants* 
which moved up 10 to 290p for a 
two-day gain of 30. 

Hoover doll 

Interest in miscellaneous in- 
dustrials centred .-on secondary 
issues. Renewed speculative sup- 
port on bid bopes helped Pauls 
and Whites improve '5 to 127p, 
while Zetters pushed' forward 4 
to 55p for a similar reason. Buy- 
ing in a thin market helped 
Charles Hill .of Bristol put on 9 
at lOlp and National Carbonis- 
ing, at 52p. recorded a Press- 
inspired gain of 2. Furniture 
issues were popular, Christie 
Tyler closing 31 better at 77jp 
and Stag 3 higher at l(Hp, while 
B. and I. Nathan -added 4 at 51p. 
Maynards also improved 4 at 128p 
as did Myson, to S9p. Late details 
of the platinum price increase 
helped Johnson Matthey advance 
6 to 4S0p, while gains of 3 and 
5 respectively were seen In Hirst 
Malllnson, 38p, and Norton and 
Wright, 192p. The deteriorating 
labour dispute within the group 
upset Hoover A which fell 12 to 
330p and London Pavilion lost 35p 
to Slap on profit-taking: awaiting 
fresh developments in the bid 
situation. Robert McBride re- 
linquished 13 more at 35ap.‘ Hays 
Wharf shed 5 to 13Sp and StaUex 

International If to 16£p. Among rials, stockjobbers Akroyd and 
the quietly dull .leaders, Glaxo Smithers improved 8 to 2109. 
sbed 5 to 5S8p and Boots gave up Shippings were neglected and 
4 at 219p. P. and O. Deferred eased a pennjr 

Distributors continued to fea- to 114p. 
ture Motors end. closed widely Carpets International featured 
better following; another good Textiles, closing S cheaper .at 47p, 

business. YVadham Stifcnger rose after 46p, following an active 
2f to 40|p. while BSG Inter- trade after the company’s state- - 

national, 43p, and Arlington, I22p, mellt forecasting a loss of 

approximately £3 2m. for its 

B smssssesks 

uf dividend. Othercarpet issues lost 
Alexanders ]i«ird&D£u 3 to lS^p <l 14 i tHp ■ 

and gains of a penny were seen in S™? 3 * but dofied above 
Lex Service, 79p, ahd Dutton- ° - L 

Forshaw, 48 p. Oliver Rhc put on South African Industrials con- 
4 more to 6Jp. Remaining Motor tinged firmly despite adverse ; 
issues were highlighted by Lucas Press, comment and OK Bazaars 
Industries, which finished 8 rose 12 to 317p. 
cheaper at 262p, after 260p, on 

reports of country selling. Platinums race ahead V 

A combination or recovery and 

bid hopes helped Oxley Printing The ' recent upsurge In 
move forward 5 more to 5flp, after Platinums" gathered pace yes ter* 
57p. Recent speculative favourite. day as shares of (the South African 
Mills and Allen Internationa] producers- of the metal advanced- 
added a like amount at 135p, while both prior to and after news that 
London and Provincial Poster the major South African producer 
hardened 3 to 180 p. Jefferson — Rustenburg — had raised its pro-' 
Smurfit, however, fell 9 to 194p ducer price to 3205 per ounce 
A -fairly brisk ' two-way trade from S18Q. 
developed in British Petroleum shares of Rustenburg closed 
which, after opening 8 lower at mgher ac gap, after touching 
798p on Wall Street advices, held a 1977/75 high of 99p, while 
at that level throughout the day. B Ishopsgate Platin ran— represent- 
Shell were inclined easier again ina the second largest 

mtd gave up 2 P^duS--were finally LO better 

Royal Dutch hardened 4 more to ^ a of go- Lydenburg put 
£39. again on dollar premium in- ‘ \ mn 

Alienees. Outside of the leaders, 011 4 more t0 _ . 

OH Exploration rallied further to Among South African Fhjan- 
238p following the company's cktls. “ Johnnies ” were again 
denial of a dry well before settling outstanding with' a further half- 
at 236p for a net gain of 4. Tricen- point improvement to £X3ihT-fl 
troL however, were dull at laSp, two-day rise of £2 — reflecting the 
down 4, while Lasmo eased 2 to company^ substantial holding in 
188p and the latter's Options 7 to Rustenburg; 

393p. - Golds also enjoyed another ; 

• Properties gave further, ground good day although prices ended , 
on continued scattered selling and below the best following -the ■ 
lack of incentive. Land Securities marginal aFternoon reaction in - 
gave up 4 at 221p. but MEPC the bullion, price, which was ; 
firmed to 133p before drifting finally 75 cents higher at 8176.375 - 
back to dose a net penny down pe r ounce, after being $177.10 at 1 
at I SOp. Among secondary issues, the morning axing. - 1 

Haslemere, 250p. and Slough, _ _• . ,.v- 

I2lp, reacted 3 apiece, while loses „ Heavyweights were feawred by , 
of 2 were sustained by Stock Con- Ran^onteb. whl^ gained -a 
version, 269 p. and Samuel. 92p. P® 1 ”* a L_ a 1 ? 77 ' /7S 
Against the trend. Country and whde other issues to sbo-w sub: 
New Town encountered specula- stand al rises included Harn - -ny, 
live support and put otJ 24 to 27p firmer at 407p reflecting a 
along with Garke NickoIIs, which shortage of stock, and Wit Nigel, 

Gtavenunent dec*. — 
. ftjtad intcreot..— .. 

Imtiutflal Ordiawy ... 

.6utd Ml nee 

OnL Dtni'leU 

BernioKi rid^fulWl 
ftfl auto met? rtt 

Dniisgt iiivfecd— — 
Hqaity tnrnorer Jim... 
Kqqltr t*es«ln» utn<. 

J* n. r Jm. i 
■3* [ S3 ; 

76.87* 77-OOj 
K).70[ 00^5; 
483.4 486.6j 
169.91 163.2> 
5*rt!' -8.54! 
I 6 . 99 I ifi.-eo) 
e.34j 8.39] 

6.153) 6.40* 

- j 68-OS; 

_ 14,779: 

"Jhju' 1 A yiw 
1? • sin* 

77.36]' 77-00] 
80.97] OO.flj] 
488.0; 47B.3| 
5.58] 5.69] 

16.89; .17.1® 
8.39; 8-25] 

5.031] 5.128j 
, 95.56* 64.94] 
15.085! 13.2981 

1, „ «U. ?r «i 1 ***■ : ; 

-T4tae3 S^-33. SK Acuvity. JHly-D(.*C. l9C- y . 


i 1977/78 jdlure L'ompitotlun 1 1 J 

low 1 riigii 

iri ( 2j 

Cfo«, 60 M-. 


■ftiedlnt... 81.27 

lxtd. Ord 649.2 


Gold Mluea. 174.5 

60.45 I 127.4 r 49.18 | 

(4/1) | fi.'l/M) i3/l<'»b) j 

80.40 ' ISO. 4 ! 50.65 
(4/1; fd;l/7Si j 

367.6 549j2 | J49.4 

iTSilJ ■ (W/H/Tfl- | 

95.1 | 442.5 1 45.5 , 

,La (S2p/7Stii3v 10-711 J 

— Ltanv ■ • 

IlhlLi'i rlf~. ...1 

1'olHl". f 

>iinv Av 'ntsi : 
ilin-Siisi'i .. 1 
In ItiHtrini* ...: 

r.*i» - 

..Rrst Last Last For 
Deal- Deal- Declara- SelUe- 
. ings ings Uon ment 
Jan. 24 Fev. 6 Apr. 27 May 10 
Feb. 7 Feb. 20 May il May 23 
Feb. 21 Mar. 6 May 25 Jun. 7 
For rule indications see end of 
Share Information Service 
Money was given for the call of 
Excalibur Jewellery. Levey, 
J. Brown. W. E. Turner, Oliver 
Rix, Armour Trust Dunlop. 
Allied Colloids, J. Haggas, West- 
minster and Country Properties. 
English Property. Frank Gates. 
Consolidated Gold Fields, Avon 
Rubber, Tricentrol, Garfield 


DATES LHIey. Westland, British Land, 

Last For Bonnah Oil. WV stern Areas 
eclara- Settle- Dunlop. Banco ‘.’A,’' Royeo, 
National Carbonising, Daven- 
flay il May 23 ports' Brewery, Hanger lnve>L 
lay 25 Jun. 7 ments. Mills and Allen, Of res, 
ns see end of BP, intereuropcau Property, 
ion Sertrioe Selineourt, London Brick and 
1 for the call of Rowlinson Construction. Puts 
lery. Lever, were taken mil in Imperial 
rnroer, Oliver Group, Talbex and Town anti 
rust Dunlop. City, while doubles were 
Haggas West- arranged In KCA, Viking Oil, 
try Properties Selineourt. Shaw’ Carpets TnlJiex. 

Frank Gates. Avon Robber, Oil Explore "mil. 

Fields, Avon Towu and City. British Land and 
rol, Garfield Brittaniu Arrow. 

Armed 2 further to 74p. 

which clcunbed 8 more to a Mgh 


The following securities emoted in the .NEW LOWS (3) 

Overseas Traders had two firm of J* 8 ** 

spots in African Lakes 5 up at The Gold Mines index moved 
290p, and Nigerian Electricity, 7 ahead for the fourth consecutive 
higher at 257p. trading day, rising 6.7 to 159.9, 

Investment Trusts took s turn '“! *8 hMt level OculKr-l» 
for the better as the proceeds of ast ’ 

the sale of Edinburgh and London-registered Financials 
D undeed shares were re-invested, traded quietly, while in Diamonds 
Mooloya moved up 3 to 45p. while £ e Beers hardened 2 to 902p} in 
similar cains were recorded by Tuesdays issue the price quoted 
Colonial Securities Deferred, w « ^correct and should have 
240p, and Continental and Indus- TCa ^ 83 S00p. 
trial, ISSp. Clifton Investments Investment premium influences 
featured late with a rise of 1} enabled. Australians to gain 
to 10ip on news that Aicrafield ground with Oakhridge prominent 
has sold its 54 per cent, share- at 140p. a rise of 5, and Padfic 
holding for 12p a share. In Finan- Copper 3 to the good at 3fp. ' ' 

The following securities ouotert in the 
Share Inlormatlon Service vc-sterdjv 
attained new Highs and Lows for 1977-. 8. 

NEW HIGHS (108) 

SEERS (21 

FOODS (5) 


MOTORS 115) 


SHOES (11 



Exchqr. 10 Um. (£30 putH 

Cummins S-'iBC 78-04 

Carpets Internal! 


Up Down Same 

British Fumis 

Corpus.. Dom. ' and 




Foreign Conns 









Financial and Prop. - 


















Recent Issues 











These indices are the joint com pi la ti on of the Financial Times, the Institute of Actuaries 

and the Faculty of Actuaries 

Laiwin S. A. (Trade Marks) 

has acquired the Lanvin Division of 
Lanvin-Charles of the Ritz, Inc., a subsidiary of 

Squibb Corporation 

VYV- repiesented Lanvin S.A. (Trade Marks) 
m ihe negotiations leading iq thus transaction. 

Donaldson, Lufkin & Jensefte 




Figure* in paxentlMW* ibow number of 

ctocks per section %“ 








01 j. 





£1 J„ 






K1 A. 






[«;«: F.r. ■ 3.d 
ITdaisi I’.H. | 

- : F.I-: ,37~1 
re9J»(-K.H. . - 
E99ki *10 20 4 

- I . .1*. . 6il 

louin lUJitAuriir Mun.'Varinhie IdSi 

10L^4> «» ;ii*rh l Hit 

| du 'L'eurrai a !Sbeerwouii 10 % tnb. Lu. Wtfl 

61 U: 371- Grampian Ktu.ljjt'liM 

■if *ia|Haunsuriv Variable l»a__ 

,9b q luuorlfc.lotea I9b4 

ri «bL{l UivtSUeh. 1900. 

1: Jo ilnIKensliiauiii A Chelsea lUSiC'4i7 

liL>; Ui. Liu, Variable ’KJ ...... 

HU *Jt E LwtJj, Varuliie irtfi; 

l*.U ; iiu !•> ju>b -ester Variable ittfls ; 

toil? 1 lUOis \IU» Kent WAtor7% 1021 

tu2i? ski !->(. Reien* Km. I3t£i 

' *»• libelr I nil. Fin, X -V. 8J" Guar. Nnteii 1030 

10*1- SCI) . Slav hurniliire 10% (. inn. Frel 

t'Xi. . '100,',, ITameiMc Virlablr 1995 

It's*, luli Du 103»J lied '840 

tvjil, iiAi-lYurh Trai'er IQJL Prel 



Building Society 

Announces that the following interest rates will apply to their investment - 
accounts from 1 February 1978 

Gross Equivalent 
at the 34?* basic rate 
Net of income lax 

Hn. < ■ = s 

u: I < * 

ICviiuik. | 1977/S r 

ii-u- L ! 

U tub 1 Unw j 

1— I,.— — i- 

Ordinary Share Accounts (£1 -El 5,000*) 5.50 % 8.33 % 

Subscription Share Accounts 6.75 % 10.23 % 

Capital Bonds 

2 Year Capital Bonds (E500-E1 5,000*) 

-l- c « above Ordinary Share Account rate 6.00 % 9.09* 

3 Year Capital Bonds (E500-E1 5,000*) 

1 % above Ordinary Share Account rate 6.50% 9.85 % 

4 Year Capital Bonds (E500-E1 5,000*) 

V* above Ordinary Share Account rate 6.50% 9.85% 

Deposit Accounts 5.25% 7.95% 

Save- As-You-Earn Accounts Interest rates unchanged 

The guaranteed extra interest paid on ail existing Capita! Bonds continues 
unchanged. The actual rate of interest paid on all existing Capital Bond 
accounts and on al! other investment accounts on which composite rate 
tax is paid by the Society (except fixed interest accounts) will be reduced 
by 0.50% from 1 February 1978. 

(*Up to £20,000 In joint account) 

Head Office: New Oxford House, High Holborn, London WC1V 6 PW 

6.00% 9.09% 

da i uil ' 31il U4.B; Jt|nnl &iitn \rliiurtiiu Motor. 

IS* | r. I*, ilo-lu 27 ] a- tti>, .jrtifxj-i Guutirv 

au K.l*. ; 6/li 1Q.-3 7S nb ,4bielonn. 

52 I F.P.j 05.1 id7.2 ; al 38pn .hri>iy Biu- 

18j ] «n ! LU/S , .lil. 5b(Hii Coiiirl Bmi|{ \A Aii-lmlia,,... 

1* u oil [ 15’ 1. lU. 2 [.-a(.m lOf-in Ui«[ ImuiNrin 

ISifi; F .1*. i 24.-1 1 6i2, 13 LSSg Jobmoa A baruea 

a- ,»• j^y'lc n.\, 65 ri Jiibtnm Ftrtb 

Si P.F.J b.l IQ, -2! 7! hemuur Mmol 

10 mi 1 <'& — 1 LJt.iJ. iDienuxionnl 

196 mi 1 5b. 1 S/3| yJ(uiii 20jmt Miurboni 

\..ta III. I 17, 1 21 3 i| Lipul Nminiim .bj». o! Aim! m !■»]«.. 

0^ ! nil | — — i lOfimr Bpro Neill (Jju.) 

1/1?; F.P. ,25(12: tun, 33lji M Hiu-i.i. W. L 

35 ! ml — j — : 25|iin! tauiii rAlfrcIi 

3a K.i*. i. le.-i 5,3 40 , iji< z 

^ i ^- ,J - iltorli. j l! ! 84 lltfiai* Hhirwiv..iH*.... IN 

1U : F.P. i 13/1 lj 16, 2| lb | 11. iUitIb tUeo., 

16a K.P. ,14,1.. lb l; 225 I 337 |Lbi. b-iwUifH- 

au , K.P. . s i • 4 ? 1, 44 l 36 jWiliiBnt- tJ. CiU'ilil't.. 

•! X3T e j — L, 
IuuSb ..... 
,;10O ..... 

•100 ..... 


102 — 1 « 
&96-i ...... 

ltHia ..... 

lOOif,-... . 

1 ioi 8 ;-i4 

L'hMi,i|- j 

Priefe- j 




48 K m +1 
62 • -1 
29), m! — 2 
27pin —I 
Spin— I 


26pm tJ 



44 + 

Investment Trusts (50) _ 
Mining Flqan«»(^ _ 
Overseas Traders il9i 


Kenunviariiiti rtaiv unnuiiy las q«» ror ominy rree m stamp imy. a Ki^urea 
lueert on pruspeirtus nrimate ■ u Assumed mmeort lint vkHI. « yaw ma rlmrtcnrt: 
vnvei tWBi'rt mi previous wars eaminea. r Diviaonn amt noto based on orosp#ctua 
ur oftirr oiHcial esnmares tor 1979 y Crass t Kigures unuiimI • Onrer allow* 
tor conversion of -shares mu now ranking for dividend or ranking nni* mr restncxwi 
imdcniLi. « Plaeina dticp lo public i<t Pence umes<i aiimrwise indicated- 1 
ny lender, i; Offered ro DoWere oi Ordinary shares as a “ njthrs."' ■* Ruchtn 
W W« v n ' caDlultNUinn NMuumum lender price, ij RemmuiiicMt. V Imacrl 
m connecdon -ant, reuraanisanon merger or latw-over. Ufl intrMucaAn r] issued 
to former Prefervncv holders | -A Hoi mem tellers tor tollynpaidi. • Provisional 
or Darrty-iuirt ailmmem lerrers. * With warrants. 




21315 f 20924 








1 Coder 5 years.. 

2 5- 15 years. 

3 Over 15 years™. 

4 Ixradeesu 
3 .All stocks. 

Interest rates unchanged 

Stock lion 

Rank Org 23p 

D'e Beers Defd. ... K0. 

BP - n 

Davy inU 23p 

RTZ 25p 

Avon Rubber ... xi 
Carpets Inrl. ... 50p 

Reed InU II 

Turner &. NewalJ £1 

Burmah Oil £1 

Grand MeL ' SOp 

ICI £1 

Shell Transport ... 25p 

BATS Defd 23p 

Debenhams 25p 


Denomma- of- 
lion marks 
.... 25p is 
. ... K0.05 ‘.14 
£1 13 

Closing Change 

price ip) on day 














. % 



to dote 

1 Low 

2 Coupons 






4 Medium 




5 Coupons 



. -0.45 


7 High 








8 Coupons 


10 IrreHam. 

PTXED interest 

YIELDS T “"*- 

Br. Coil. Av. Cross Red. . J jj' 

ladj. n 5 years 

1KT X ^P 011 * 15 years oa 

-i, 3-oaw. . „;“••• jjgJ 

003 i Jfediuni 5 years 974 : 

5 Cbupons 15 years. 

- £ — ^5 years. ■ .. .. 

113 1 5 years 

0.00 g Coa ^ m IS years USO 

, — 1 — B y ears ■ 11.55 

BTedeemablea..... 1L& 

Mon . -- j - year . 

■ m. 

1050' -W ? \ 
10.&2 : V. 



IL26 ) • 





• 146 



. - 2 





- 4 


' 74 



- 8- 

• 77 




- 2 





- 1. 





+ 1 



7 . . 


- 15 










- 2 





- 1 





- 3 



— - ■ ■ • • -a: 

Tuea.toj-. j an< 04 jj ta ! . 1 . 11 ' 

- ■ i ; Ti j ^ 1-^ mM 

13 3U-yr. Hed. Deb. & Lubdb 05)^44*1170 ex I ■ ' ' 

16 investment Trust Prefs. 05 ) B7 . 6Q i 6S “ 2 ; «« j - «5.u >>«.» 

17 Com I and indl. Prefs. 120 ) 7847 . 6? ' 67 B7 - 67 | s? a 7 | «.*7 | «.aa | a7>rf 

sum. ZnTuZ Bi.'trt? SL a; ^ d ^«“he' l fai J ara ' 

: — — ew Timeo. Bryjtw - 

■C3i: w 

1 'o-° Ui*£> 

tnancial. Times Wednesday January 25 197SL 




Cxl Baida. 

_..J im 


jtxn & IntLFd 





i n, 

r » 




6 93 

2 **&-°*\ 




Compound Growth. 

cuve investments limited 

Royal Exchange Ave.. London EC3V 3LU- Tel-: 01-2S3 1101 
lex Guide as at lit* January* 1978 (Base 100 at 14.1.77.) 

Clive Fixed mterest Capital T34.P7 * 

Clive Fixed interest Income 127.53 

CORAL INUEX: Close 481*486 

insurance base rates 

t Property 1 Growth $*‘5 

Cannon Assurance 

i Addnr.- thf** , . n ur.w layaramv ,- and Pmpcny B*md ThM*. 

g- 1 " 


BN. Bant 

ilied Irish Banks Ltd. 
uumcan Express Bk.. 

uro Bank ... 

P' Bank Ltd 

.uiry Anshacher 

mco de Bilbao 

Jik uf Credit & Cnice.l! 

nk or Cyprus 

ink of N.S-W 

nque Belac Ltd . 

nque du Rhone 

relays Bank 

mett Christie Ltd.... . 
emur Hold! tins Ltd.' 
it. Bank of Mid. East 

atvn Shipley 

oada Permanent AFT 
prtoi C & C Fin. Ltd. 

yzer Ltd 

dar Holdings 

miCThwixe Jophei .. 

E. Cuuic.s 

osofidated Credits... 
-operative Bank. ... 0 
rinthuin Securities... 

edit Lyonnais 

e Cyprus Popular Bk. 

:pcau Lawric F 

5it Trust 

glish Transcont. ... 
fsl London Sees. .J. 
rsr Nat. Fin. Corpn. 
rst Nat Sees. Ltd."... 

tuny C1h»j> 

ode Durrani Trust 
evlx>und Guaranty... 
uidiay* Bank _ t 

•innefs M.-ibua ...... 

•mbn?« Bank 

■ICiU Samuel ? 6}** 

C. Ifoare & Co f 6j*& 

Julian S. Hodge 7i°,> 

' Hongkong & Shanghai 6**$ 
Industrial Bk. of Scot. 7 % 
Kcyscr UMmann .... 
Knowsley & Co. Ltd.... 9 % 

Lloyds Bank 

London & European... S*®£ 
I.ondon Mercantile ... ■ 6r*% 
Midland Bank 6J *v» 

■ Samuel Montagu 

■ Morgan Grenfell 6J9& 

. National Westminster 6i% 

Norwich General Trust 6J*7» 
P. S. Rerson & Co. ... 6i% 
Rosiuninster Accept' cs SS C « 
Royal Bk Canada Tru*l 6J<5 
Schlesinger limited ... 7 % 

E. S. Schwab S)°rt 

Security Trust Co. Ltd. 7*% 

Rhenley Trust 

Standard Chartered ... 61*7, 
Trade Dev. .Bank .„... 61*7. 
Trustee Savings Bank 
Twentieth Century Bk. 71<T, 
United Bank of Kuwait 6|% 
Whiteaway' Laid Jaw .... 7 % 
Williams 8r GJyn’s ... C ’■ Si 
Yorkshire Bank 6!*Vi 

B Mi Difrrs of ihi* .tccrotiiw Hdosi-s 

’ 7-dar deposits i-muntb ik-pw.m 
a: :. 

7Uor d.-wMis o» win. r*r tJDffw 
and oniii-r S" . up in ET-VASll SI ”, 
jwI o»«T £Ti.KM 4i' . 

Pall Jt-onslls over r:HM -*». 
tJnoaurt (knoSliS I-.. 

Kaic aHo uolivr. ta su-nm* lad. 

7 Uit tkposiis Xi'.. Raw tor Term 
Depots or.'r I1.0H9 nraoJiablc. 











ZM.9f -UL 




.01-086 43 

33 - 



Frtx l~ 
6 reap 

^3 = 

i = 


rcnple in the United Kingdom suiter from peogresstvety 
ilyonij MULiilPLE SCLEROSIS— l be cause and cure of 
A arc still junknown— HELP US BRING THEM RELIEF 
0 HOPE. 

need >our donation to enable us in continue our work 
•Werazad. 4 ,: continue our commitment to dud the cause 


Ptcase help— Send a donation today to: 

■ Room F.l* 

The Multiple Sclerosis Society of G.B. end NX 
■4,"Tarhbrnok Street, 

London SWl 1SJ 


.*• -' -••». ‘ 
«. - ’./• -V. - 


For valuation, sale, purchase 
and advice — 

□□Grimley & son 


Bimnaten gftt-238 ASM 
Lsndao OfftMOASI 

Wednesday January 25 1978 

Companies House Searches? 

Extel are Expert 

' " TELEPHONE: 01*153 3400 

Leyland plan fears 
among executives 


STRONG OPPOSITION to Mr, which is headed by Mr. Pat The second argument concerns 
Michael Edwardes’ plans for Lowry, the former industrial the organisation of the com- 
dec-enlralising management tn relations director. who was deeply pany’s engineering department 
Levland Cars has emerged within involved in planning a centra- Under the former structure,Ley- 
t he committee he set up to look lised bargaining structure. ■■ land was heading towards a 
into the company's structure But he has .made it clear all totally-integrated engineering 
soon after he became chairman along that he himself is deeply facility. 

of British Leyland ten weeks committed to a broadly decentra- Decentralisation proposals 
ago. Used organisation. Because of would reverse this trend, and 

Some members or the com- this commitment, Leyland execu- there has been heated discussion, 
mittee. composed of executives tiyes confidently expect that he as t0 how far this should go. The 
from both inside and outside will get the basic structure he mos t likely outcome is that the 
Leyland Cars, fear that deeen- wants. The Indications are that 5 , 000 -man group now headed by 
tralisation will make the motor the Government is also backing Mr. Spen King, Ley land’s chief 
business even more complicated the proposals. . engineer, will be split up, but 

to run than the present struc- Mr. Edwardes can also point to that a centralised facility for 

ture. support from some sections of advanced product engineering 

Mr. Edwardes has to resolve senior and middle management w iu be retained.' 
the issue this week before in the company .who have always The third — and most difficult — 

making his prepared statement P** 11 , opposed to the move pr0 blem has arisen over market- 

on the future of the company to towards a centralised, Ford-style j n g p j ang _ present franchising 
shop stewards next week in organisation. _ arrangements are -being retained, 

Birmingham. A scries of meet- ™ “ e . disagreements in the w hi c h means basically that Ley- 
iogs with the cars organisation organisation group fall into three i and ; 5 main dealers will con- 
group has been held, and its pro- categories. tinue to sell every car from the 

posais put to the newly-estab- *’ Irs . r ; ® om . e members .believe Mini t0 fl, e R over> plus a selec- 
lished advisory Board in London that “ Leyland Cars is split jj od f rom ^|j e Land-R over/Range 
for a decision. down into too many small units, Rover an ^ jaguar range. But 

It has been clear for some the inter-relationships between liiere has been a great dea ] of 
weeks that a number of senior these w 11 become so complicated argument over whether the pro- 
executives in the company were that they will cause more prob- posed Austin-Morris and Jaguar 
opposed to Mr. Edwardes’ ideas lems than- they solve. Rover Triumph companies should 

on decentralisation. Against this view Mr. be served by a centralised sales 

Indeed, virtually all the top Edwardes has argued that man- organisation 
echelons of the present manase- agers have to be given jobs Latest indications are that U.K 
ment are placed in the awkward which are less all-embracing marketing will once again be 
position of being closely asso- than in the present Leyland Cars split dowQ |„ l0 groups based on 
ciated with the move towards a structure. He believes, this is new car companies and that 
centralised structure over the more in keeping with ability and mos t oversea* sales nresentlv 
last two years. skill available in the company. “°_ St 

Mr. Edwardes has not tried to which he wants to.split into at dfvW “£ £ put back with 
bury this opposition, and has least three companies, based on i “ enmoanies 
effectively opened up the debate volume cars, specialist cars and p 

through the organisation group, parts. Labour news Page 9 

Callaghan hint 
on leadership 
swells his vote 


Japan in bid to reduce 
steel exports to U.S. 


TOKYO, Jan. 24. 

JAPAN S MINISTRY of Inter- per cent of total sales. This appears to be one of the products 
national Trade and Industry in- compares with an estimated 18 which could still be the subject 
fends to “guide” the country's per cent, in 1977 and a Carter of protectionist legislation in the 
steel industry towards reducing Administration target of 13 to U.S. Congress, 
its exports to the U.S. if 14 per cent. in contrast with its conciliatory 

«!l\ e « Ca « S r^ r0 n?. S » e l^n e !i pr t , hf If trigger price system attitude towards the U.S.. the 
?' k 1 f,= “Li? 10 5J£? failed - the Ministry must guide Ministry appeared today to be 
.»?• 0r the stee * industry not to “export reacting in a coldly hostile 

Mimstry official said to-day. unemployment" to the U.S.. the manner to the European Com- 

-JS added - S 3 S tJEEST&Jff 

Gifts gaw-Afii ~i 

estimated customs duties. Where .. ... _ _ _ . . Tanan 

foreign steel is imported into the H ? 'Y as . confident «„ . . . , 

US ar below the trigger price Ministry had the power to do The commission said the offi- 
tht*" L.S. authorities roav levy V his - , not on ly in relation to dal. seemed to be trying to 
additional duties following a Japans big six steel companies create a similar trigger price 
<needcd-up investigation of the which have traditionally been system to that of the US. “but 
ca5e ~ amenable to guidance but to doing it suddenly and without 

The expectation that the smaller companies as well. consultations, .unlike the US„ 
system could be working by the The Ministry is preparing legis- with whom we had full ^consult- 
middle of next month. lation to deal with the problems a *? on ana co-operation. ine 

Japan exported 7.44 ui. Ions of 0 f recession-struck industries effe ° t was to create a sense of 
steel to The U.S. in 1976 and {including the smaller steel com- unpleasantness. 
fi.72m. tons in the first II months panies) which should remove . “ a P®0,l s _P£ e ^ a ^ ,n ^«/ or - a D1Be *" 
Iasi year. It has been estimated some 0 f u, e compulsion on the mg of KEr. Foreign Ministers on 
in Tokyo that the trigger price industry to export at any price. February « -8 at which the EEC- 
system could reduce the total to „ . . . . Japan imbalance is due for dw- 

5m. tons this year. . 0ae measure being considered cu S5 io n . Mr. Nobuhiko Ushiba, 

The Japanese ministry official ls s * v . e a w®y oars. a Minister for External Economic 

said he thought it essential that P roduc J. in chronically excess Relations is due to visit Britain, 
steel exports In the U.S. should production, as grant aid to France and West Germany before- 
fall this year at least to the dex’cloping countries. hand with the object of hearing 

point where imported steel From The Ministry's recent attitude their proposals on the trade 
all sources constituted 15 or 16 may reilect the fact that steel problem. 

Protest over tube imports 


BRITISH COMPANIES have market. The tube-makers con- export steel in that form into the 
called upon Viscount Etienne side red their £150m.-3-year busi- EEC without restrictions. 
Davignon. the European Indus- ness at greater risk than at any Britain's tube makers believe 
Trial Coni in issinner. to tighten time since the international steel Uiat imports may already account 
the new EEC steel import rules slump started. fur between 15 and 20 per cent, 

to deal with rapidly rising ini- ^ Davignn0 plan aims at of the 500.000 tonnes a year 
ports of steel tubes. ,.. 1 ™,^ market. Tube stockholders are 

Twice within the past 14 days can ceiling orders from British 

ihe British Welded Steel Tube during me recession by imposing makers and buying instead from 
Manufacturers' Association has minimum import prices. But it abroad. 

written tn the commission pro- d° as n ° l t0 wh ^ 1 the The British Iron and Steel 

testing that foreign tube-makers industry calls first tranforma- consumers,' Council has had 

■ire being nlTered “an open door" “ ons ° f sleel int0 products. complaints from members about 
to sell to Europe. Any steel manufacturer can rising Kites of steel pressure 

A flood of foreign tubes is said quickly and cheaply convert strip vessels into the British market 
tn be appearing on the British, steel into welded tubes, and can since the stee] trade was con- 

I trolled at the beginning of the 

Difficulties have arisen, mean- 
while, in conforming to the 
Davignon steel scheme, which 
has the force of Community law. 
Members of the National Associa- 
tion of Steel Stockholders have 
complained that the Instructions 
from Brussels contain “grey 
areas” and “anomalies." 

Two of the products defined— 
merchant bars and hot rolled 
wide band— have ambiguous 
meanings among the nine 
member nations. 

The row about tubes Imports 
may also involve the association. 
Mr. John Woolridge, its chair- 
man. said last night his 
association does not negotiate on 
its members’ behalf on any 
items apart rroxn basic steel pro- 
ducts. Bat so many steel 
stockists in Britain handle tubes 
that a growing body of opinion 
within the industry believes that 
the association should represent 
them in the tubes business. 

• The Select Committee on 
Nationalised Industries, which is 
pressing for disclosure of corres- 
pondence that passed between 
Mr. Eric Varley, the Industry 
Secretary, and Sir Charles 
Villiers, chairman of the British 
Steel Corporation, will hear fur- 
ther evidence from both in 

Mr. Russell Kerr, the com- 
mittee chairman, said last night 
that Sir Charles would give 
evidence on Monday and Mr. 
Varley on Monday week. 

Unhappy tale Page 2 
Output figures Page 5 

U.K. TO-DAY S.W, N.W. England, W. Midlands, 

RATHER COLD. Sunny start in „ . , . Wales 

most districts, rain spreading E. . dry, then rain, with 

sleet or snow on hills, clearing 
I ; c - r . P v p later. Wind W. io S.W., becom- 

London. S.E.. CenU E..N.E. ine strony. Max. 5-6 C (41-43F). 
England, E. Anglo, h. Midlands, Aberdeen. Moray Firth. NJE. 
Borders. Edinburgh. Dundee Scotland, Orkney, Shetland 
Dr>' at first, ram, with sleet or Wintry showers, bright inter- 
snw- on higher ground, later. va j s ra j n or snow j aler _ wind 
Wind W. to S.W. moderate or NiW . backing S.W. moderate or 
fresh. Max. 4C (39F). fresh. Max. 3C (37F). 

Channel Isles Isle of Man, W. Scotland, Glas- 

Dry at first, rain later. Wind Sow, Cent. Highlands, Argyll, 
W. to S.W.. moderate or fresh. N. Ireland 

Max. 6C (43F). Scattered wintry showers, 

sunny periods, rain or snow later. 

Wind W to S.W. becoming 
strong. Max. 4C (39F). 



■C *K 

•C *F 

Amsirtm. C 7 i3!Lmnmh'c C 7 43 

sthms . R 11 30 ! Minin'! C 11 3J 

P.ahrjm K 13 30- Manrbsir. C 0 43 

RanvUifta I" 13 30‘lK-lhoumc R 19 b» 

Outlook: Changeable, 
cold, with night frost 





MiMi-AlcuC. S a BH 

43 Milan B 3d 

+|:.Monlrr-ai S -L* £ 

3 K;. Mow-ivy S -9 16 Aimon 

« .Munich R 3 37 Blarriu 

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13 3B 
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S 15 59 

Dubrovnik R 
Part F 
Florence R 
Funchal C 
Glbrairar F 
Cnemsvy C 
tmntiruck c 
Invcrncoa R 
Isle of Man C 
Isfanlml r. 

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17 05 
13 5S 

15 SB 
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18 8! 
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4 39 

S-Min. f— Fair, r— Cloud, R— Rain. 
Bo— Snow. . 

CALLAGHAN had tainted that 
his- future as Prim* Minister 
could depend on the outcome 1 
of to-morrow’s critical vote on 
the direct elections Bill Labour 
MPs gave their support last 
night to the. Government’s 
guillotine by a majority of 
nearly 2 - 1 . 

The Parliamentary Labour 
Party voted. 132—69 to throw 
out a- resolution condemning 
the lime-tabling or the Bill 
implementing direct elections 
to the European Parliament, 
which has bitterly divided the 

Anti-Marketeers protested 
angrily that the Government 
had no rigbt to steamroller 
through a measure contrary to 
party policy. - 

The surprisingly impressive 
majority came after both Mr. 
Callaghan . and Mr. Michael 
Foot, Labour deputy leader, 
warned that the Prime Minister 
was prepared to make the pas- 
sage oF the Bill an issue of 
confidence in his leadership. 

Hr. Callaghan said it was 
necessary to guillotine the Bill 
now because It was clear that 
its opponents Intended to kill It 
if they could. In his view the 
Government had a firm commit- 
ment to cany out obligations 
to the Common Market, includ- 
ing getting the Bill on to the 
Statute Book. 

“ As leader of this party it is 
my duty to carry the can and to 
take decisions While 1 remain 
leader — and you can elect 
someone else to do the job — 

I must take the derisions I 
consider to be 1 right.” 

It would do Ute party and the - 
Government much greater 
damage to abandon the direct 
elections Bill titan to go ahead 
pith It under, a guillotine * 
procedure. To withdraw the 
guillotine at this stage would, 
be a mark' of irresolution and 

Mr. Foot told MPs the 
Government as a whole con- 
cluded ft could not honourably 
abandon the Bill, because the 
Prime Minister had made 
clear his personal commitment 
to it and because it had formed 
a major part of the pact with 

Confidence issue 

the Liberal Party, on which 
Government survival had 

His supreme objective was 
to ensure' that the Prime 
Minister could choose the best 
time to win an election, and 
he hoped the party would 
support him in this. 

The size of the majority 
makes it highly probable that 
the guillotine motion will be 
passed by the Commons, witb 
Conservative and Liberal 

It is not yet dear how much 
Tory support there will be. 
Many Conservative MPs fear 
quick passage oF-lhe Bill may 
release invaluable time for 
the Government to intro- 
duce attractive pre-election, 

Both Ministers and Labour 
MPs are to be allowed a two- 
line Whip, which means it will 
be possible for anti-Marketeers 
to absent themselves from the 
division. The chances are that 
at least four members of tbe 
Cabinet and about 20 junior 
Ministers will do so. 

P aril ament Page 10 

Benn outlines Left 
election policy 


MR. ANTHONY WEDGWOOD the minority administration. 
BENN proclaimed last night what But in a key passage. Mr 
amounts to a Left-wing manifesto Benn told the London School of 
for Labour in the next election, 01160131 and African Studies: 
pledged to restore full employ- “ Past ■ achievements, present 
ment and expand public owner- difficulties and party loyalty are 
ship and the welfare State. not sufficient to win the support 
His call for full-blooded aocia- of those we represent, and bring 
list measures to transform ebout the return of tbe Govern- 
society not only sets him at odds rasnt. Something more is 
with the Prime Minister and the needed, and it is as well to sei 
moderate approach implicit in it out clearly.” 
the Lib-Lah pact, but with the Labour’s best, if not only, 
whole economic strategy of the chance of winning tbe election 
Chancellor. lay in campaigning ** vigorously. 

In a speech setting out “six openly and courageously" for 
campaign themes for Labour in democratic, and socialist policies 
197S” tbe Energy Secretary “ which met the people's needs." 
made public his belief that , in- It would be a gross misjudg- 
dustrv and the public sector ment! of the *pubtic mood, he 
should he given first claim on tbe claimed, to suppose that the 
extra resources available through sacrifices of the past few years 
North Sea oil. were made to help the economic 

His empbasis on the need for and political system, which had 
Labour to open Lts “ pre-election" caused tbe crisis, to recover as 
campaign now will be taken by it was. 

the party's moderate wine as an In a stinging attack on the 
attempt tn snatch the initiative Liberals, Mr. Benn said that to 
in the battle shaping up between follow their policies would lead 
Left and Rieht over the contents- Labour into similar political 
of the manifesto. oblivion. 

But many Labour MPs also saw Themes listed by Mr. Benn 
Mr. Benn's move in dissociating included the heed for full 
himself more clearly than ever employment and better public 
from the whole slant of Govern- services, the struggle against 
ment policy as designed to re- Fascism and racialism, and for 
establish his own Left-wing socialism internationally, and for 
credentials against the da v when human rights at home and 
election to the party leadership abroad, 
next comes up. It was wrong, he said, to think 

He paid passing tribute tn the that public spending cuts and 
Government's progress against higher profits would lead to 
inflation, and stressed the wish increased investment by private 
of the Labour movement to do industry. Public ownership was 
everything it could to sustain “on the agenda again.” 

Continued from Page 1 

6 Green pound 9 row 

out- Mr. Sil kin is to make a among EEC members with strong 
statement in the Commons currencies, 
to-morrow. Their green currencies remain 

rpK , .. low, and hence their farm prices 

The hostility of the three hjgj, ^ tb ey have little scope 
countries appears to be part of for increasing producer prices 
the sabre-rattling ahead of the beyond the Commission’s restric- 
annuai EEC farm price review. ted Proposals. 

It also indicates a certain amount The Commission nas proposed 
of resentment at what some an average increase in farm 
Europeans regard as Westmins- prices of 1.9 per cent A British 
teris high-handed behaviour in 7-i per cent “green pound" 
raising the devaluation from 5 devaluation would further add 
per cent, to 7J per cent, at the an estimated B.t per cent to this 
last minute. for British farmers, while adding 

• ^ i ... „ . ' . L5 per cenL to the food index 

Approval of ihe British request and q. 375 per cent, to tbe retail 
would, open the way for con- prlce according to British 

sideration oF Italy's plea for a officials. 

6 per cent. ^devaluation of the Denmark, Germany and the 
green lira. Benelux countries have no such 

In the wake of a 21 per cent option and anticipate strong 
devaluation of the French “green -hostility from their farmers to a 
franc” late last year, the British price rise of less than 2 per cent, 
and Italian green currency when U.K. farmers . would be. 
moves have provoked antagonism receiving close on AQ per cent • 


A two-way 

Although the local authority, 

yearling bond rate ; edged,. t_j ov *2 2 tn 483 4 
slightly higher yesterday, this Judex leit 3^, TO 

said more' about the changing ' ' J — =_ 

shape of the yield curve than 
the direction of short-term in- 
terest rates. In the money mar- 
kets, at least, most . operators ; 
are now looking for a quarter 
point fall In Minimum Lending 
Rate on Friday and the Bank of 
England will have to make a • 
signal either lb-day or to-morrow 
if it wants otherwise. Given the ; 
shortages in the money market 
currently, it has plenty of scope 
for halting the decline in rates 
if it- so wishes. 

As yet it has shown -no sign 
that it is averse to a slight fall, 
and -this makes the present 
weakness of the gilt-edged mar-, 
ket all'the more puzzling. Yes- 
terday. the prices of long dated 
stock fell by half a point and 
at the shorter end of the market 
the losses were not much less. 

The FT Government Securities 
index Has fallen by nearly two 
points since the start of the New 
Year and is 4 per cent, down on 
its 1977 peak. 

Sentiment in the gilt-edged 
market was not helped by yes- 
terday's comments from Field- 
ing Newson-Smith, who now 
describe themselves as “stra- 
tegically bearish.” In addition, 
the discount houses appear to 
have larger gilt holdings than 
they would like while there are 
signs that some institutions 
think the game is now over as 
far as substantial capital gains 
are concerned. That could 
imply a willingness to stay more 
liquid than they have recently 
dared. There is certainly plenty 
of stock overhanging the mar- 
ket, with the long tap virtually 
untouched while a short tap 
would no doubt appear at the 
least sign of demand. But the 
overall tone is Far from de- 
pressed-even Fieldings are 
only visualising a shallow bear 

il/t 1 


the full year wiirbo'Jfsood” com--* 
pared with the £X8^n: of 1976- * 

1977, and for suehU -loUg cycle _ E ’ 
company the half-yearly figures A 
cannot be very significant. Jni * 
recent years the first-six mouths 
have -- contributed between tfi 

* 1 




Carpets International 

“ Fit, lean and full of enter- 
prise ” was the - unfortunate 
headline Carpets International 
chairman, Mr. Roger Wake, 
chose to - publicise his group’s 
1976 results in advertisements 
which appeared only ten months 
ago. The same advertisements 
spoke of heavy losses in Austra- 
lia, but said profitability was 
expected to be restored there 
“in the near future." Less than 
four months ago. at the time of 
tbe group's interim statement. 

the Carpets International chair- 
man had to report further Aus- 
tralian losses of £1.5m., but he 
was still confident that the Aus- 
tralian subsidiary would “be 
trading profitably by the end 
of the year.” 

Yesterday Cl shocked the 
stock market with the disclo- 
sure -that it will probably be 
missing its final dividend be- 
cause -unexpected Australian 
losses of some £3^m. have 
eroded 'most bf the group's UJv. 
and other profits. The news 
knocked 14 per cent, off the 
shares price, reducing the 
group’s capitalisation by £IBm. 
to £l0.7m. — about a third of 
book net worth. 

Carpets International has just 
completed a major reorganis- 
ation of its affairs in Australia, 
.and . would like to believe that 
it now has the problems there 
under control at last. But given 
that Cl has been making losses 
down under for several years, 
ft will take more, than renewed 
assurances from the Board to 
convince shareholders that' the 
rot has been checked. In the 
meantime. Mr. Wake is not fore- 
casting when Carpets Inter- 
national will be able to resume 
pasting normal dividends. The 
only consolation is that Cl has 
not had to go through the pre- 
mium currency market in send- 
ing out funds to support its 
Australian operation. - - - 

Davy International 

The stock market seems to 
have taken Davy International’s 
interim figures too seriously, 
marking the shares down I2p 
to 232p on a profits increase— 
from £7.3m. to £8.4m. pre-tax — 
which was well below most of 
the analysts’ guesses. Davy is 
still saying that the results for 

However, there are one or two 
• specific reasons for the market's 
dissatisfaction: there.- is little 
-sign of firsT time contributions 
due from Head Wrigbtsotr and 
Herbert Morris, while work 
done is + per cent, lower at 
£i72m. Apparently -the earhins? 
of HW are being maintained 
but will largely fall into th* 
second half, while. Morris’s ffrsi 
quarter workload suffered be 
cause of delays in finalising ; 
big Korean heavy cranu con 
tract. Meanwhile, Davy explain: 
the fall in work done in termi 
of a changing mix and current:} 

Davy’s real worries must hi 
longer term, with serious world 
wide overcapacity building uj 
in its main customer Industrie:, 
such as steel and chemicals. Bu ( 
the order book has been maim ' ’ 
tained at £1.2bn. and the com 
pany still foresees reasonabli 
demand from the U.S., Comecoi 
countries and the Third Worlt 
even if Europe stays depressed 
The profitability of this kind n 
business could be less than ex 
citing, however: the shares 
yielding an historic pc 
cent., could remain a nervou 


A flurry of selling hit Luca 
shares yesterday when word ;>n 
around of a new set of profi 
projections from Birminghar 
brokers Smith Keen Cuth-i 
close followers of the Mir 
lands scene, Lucas has a! rend 
made it plain that its strik*,- \.:r 
affected half-time figures «» 
fall short of the £35m. pre-la 
achieved last time, but it hi* 
been thought it stands a chanc 
of making up the lost groun 
later: a London broker recent! 
estimated' £89m. for 1977-7 
against £77m. But the Birmm 
ham view is that after £J3r 
£24m. for the six months 1 
eod-Januarv Lucas will only I*.,-,. , 
in the £65m-£70m. range for I ] l- ‘ 1 ■ 

full year. The argument is th 
further U.K. customer dispute 
signs of topping out of denar 
in France and Germany, ar 
the firmness ol sterling will s 
reduce the profits potential. 

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