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our business. SucceSSly. 

Eg™*"™- SELLING PB.CB: 4U!TRli 

NO. 27.614 

Wednesday July 19 1978 





TEL GUILDFORD (0483176B15 



Yoi'it Houd, fti-iodl; v:-rL 
GuiWIotd. r.'jr-v. 

‘ SERVING > : • 


TELEX 853457 









*. David Owen, Foreign 
jeretary, has told British 
abassies in the Soviet Union 
id Eastern Europe to monitor 
•viet progress in implementing 
e Helsinki hnman rights 

In a major review of Soviet 
tivity and in the wake of the 
ssident trials. Dr. Owen said 
ere bad been "little progress" 
' the Soviets and their allies 
implementing the agreement. 
He told Sir Harold Wilson in 
Commons written reply that 
e results of embassy monitor- 
g would be reported lo the 
ouse on a six-monthly basis, 
ige 2 

Igypt rejects 
sraeli plan 

irect talks between Israel and 
gypt were resumed at Leeds 
astle, Kent, presided over by 
r. Cyrus Vance, U.S. Secretary 
.* State. The talks are aimed 
t providing a basis lor full 
egaliations later but there 
apear to be irreconcilable 

The Egyptians said after the 
reeling that-they had not found 
ie Israeli attitude " positive or 
nconraging." The whole gist of 
•rael's 26-point plan was "un- 
:ceptablc n to Egypt. 

Mympic city 
nay pull out 

layor Tom Bradley of Los 
mselcs is recommending that 
he city withdraw its offer to 
tage the 1984 Olympic Games, 
’he International Olympic Com- 
nittec has refused to allow Los 
Vngcles to turn over financial 
fc ^nsihilUy for the Games to 
5 ^.yie committee. 

M? 1 

| faith's demand 

ft Ian Smith, Rhodesian Prime 
Imistcr. blamed black, members 
f the Executive Council for 
ack of progress in securing a 
eawffirc. He said black members 
f thn transitional government 
oust “‘deliver the goods.” Page 4 

Bonn aids Zaire 

Vest Germany is to provide 
laire and Zambia with military 
id for the first time, in a move 
oen as part of Ihe West's effort 
o help protect the independence 
if ihe two frontline slates. Zaire 
fill be provided with a border 
faming system. Page 3 

B12m drama bill 

The BBC is to spend £12ra on 

11 4IUUU JL-Vi “ ,---- 

* ’ailor. Soldier, Spy starring Alec 
Juinness. There will also be 
double bill of days by ihe 
-jrSech dissident Vaclav Hayel. 

| # Councils' plea 

r ~ -Tip Association of County 

rr*T! ; ^“^y3^ , £ouncils has warned _ that any 
A^Kittempt to reorganise local 
yfj!23r.: T_ ’JLcJoveminent would barm toe 
- WY^J^ducation services. It has told 
Jrs. Shirley Williams, Education 
- Secretary, that local govern- 
W*ient’s oi’erriding need is to be 
V J f £Wft alune. 

Jut not a drop - - - 

’he area around Niagara Falls, 
i,- tntariu, is suffering from an un- 
ikely shortage-water. Rtstrie- 
10ns have been Imposed op 
. esidenis because ol a drought 
. . *‘..n the resort. 

briefly • - - 

^ 1 i teacher and two boys were 

** ■ illcd when a minibus carrying 

* school party from Preston, 

. ■ ‘.ancs.. was ia collision with a 

, jrry near Auch. France. 

Vnataly Karpov and Viktor 
? iurchnoi drew their opening 

tp j . £* i-orld chess championship match 
£ i f * n the Philippines. 

"ii *■ ’axi drivers in Liverpool, seek- 
* ns access to bus lanes, drove 

■ i * jjrough-the city in a protest con- 

* oy of 150 vehicles. Three 

x t I rivers .were arrested and 58 

j tooked. 

v- 9 'he Berlin Wall, whitewashed 

, iv the East Germans be Fore 

’resident Carter’s visit, is again 
. ■. overed with anti-communist 



r Prices in pence unless otherwise 



57R .. 2S7 + 6 

i^twood lJA) . ICO j 35 

,• »ime Darby . t £ 

.Vestern Bd. Mills ... £3 + 3 

Till brie .. "T & 

\frikandcr Lrfiase ... + f 

)c Beers Dfd. . 389 + ® 

.Tanganyika ......- 

/ Union Corp. .- 280 + 7 

\ y i FALLS: . • 

./j pjsc .. 287 “ s 

Sugar at 
5-year low 
fall 63 

• EQUITY markets reversed 
the firmness of the past eight 
days on fears that the Govern¬ 
ment was planning legislation 
to extend dividend restraint 
beyond the end of this month. 
Companies with above-average 
dividend covers were the most 
vulnerable and the FT Ordinary 
Index fell 6.9 to 472.4. - 

9 LONDON Dally Price for raw 
sugar was set at Its lowest for 

five years when it fell £L50 to 
£83.50 a tonne. Page 33 

• GILTS marked time, with 
minimal falls in longs and 
shorts. The Government Securi¬ 
ties index was unchanged at 

• STERLING rose 35 points to 
$1.8835. and its- trad&weighted 
index eased to 62.0 (623). The 
dollar's depredation was un¬ 
changed at 7.5 per cent 

• GOLD rose $1 to 

London. ; 

• WALL STREET dosed 10.05 
down at 829.00. .. 

• U.S. TREASURY BUI rates 
were: threes, 7.113 per cent 
(7.18S) and sixes, 7.497 per 
cent (7.515). 

• JAPAN'S Prime Minister has 
said his government would make 
it easier for foreign governments 
and companies to borrow on the 
Japanese capital market and 
would encourage increased over¬ 
seas investment by Japanese 
industry. Back Page, Other Bonn 
summit reaction Page 2 

• JAPAN’S trade surplus with 
the U.S. in the first six months 
of this year nearly doubled to 
S5.2Sbn_ The surplus with the 
EEC remained steady at $2.1 bn 
while with the UK it declined 
to $391m (3456m). Page 6 

• NEW YORK STATE legislators 
are expected to pass a Bill which 
would make it more difficult for 
foreign banks to acquire State 
based banks by requiring State 
approval for the acquisition of 
10 per cent or more stake of a 
New York State bank. Page 5 

0 UNIT TRUST sales were 
slightly down on the record sales 
of the two preceding months, but 
at £49.6m. were the third highest 
on record. Page 8 

Assurance hasc invested £5.5m 
in buying two farms in Lincoln¬ 
shire, covering 3,543 acres of 
prime arable land, from UK 
Provident. Back Page 

£30ra outstanding loans are to be 
deferred under a moratorium 
agreed between the Government 
National Westminster Bank and 
a Danish ship finance organisa¬ 
tion. Back Page 


Authority made, a pre-tax profit 
of £24.3m in the year to March 
31, compared with £17.6m pre¬ 
viously. Page 7 

• TWA and United Airlines ol 
the U.S. have both made spec¬ 
tacular increases in profits 
during the past three months 
which has been attributed to the 
availability of cheaper air fares 
in the U.S. Back Page 


• hogg robinson Group 

expanded taxable earnings for 
the year to March 31 by per 
cent to £9.51m (£7-$6m). Page 23 

RICHARDS TILES recorded a 
45 per cent rise in pretax profits 
for the year to March 31 at 
£5.5m, which is in line wja ™ 
figure forecast m May. Page jSZ 


Glaxo .■■*■••• 567 — 8 

Gordon and Gotch ... «]> ” ® 

Hawker Siddeley ... 21- ~ ® 

1QI .... 3Sa — « 

Land Secs. I! 7 

Lloyds Bank . J 

Marks and Spencer ... | 

Rank Org. " S 

Status Discount ... 173 _ 7 

Stavdey Inds. . |90 _ 6 

Tube Jnvs. . __ i D . 

Shell Transport . 5fj> ~ 

Warren Plants. . _ o 

Westfield Minerals ... . H* 8 

TUC leaders fail 
to win concessions 
on Phase Four 


The TUC’s hopes of a last-minute concession on working honrs to soften the 
blow of a tough Phase Four incomes policy expired hut night in Downing 

No attempt was made by the 
TUC General Council at a meet¬ 
ing with Mr. James Callaghan, 
Mr. Denis Healey. Chancellor of 
the Exchequer, and other senior 
Cabinet members to press the 
point home at what was the last 
opportunity before publication 
of the White Paper, probably on 

No pay figure was mentioned, 
though a general earnings in¬ 
crease target as low as 5 per 
cent is being considered. 

It was made clear that the 
Government was most unlikely 
to budge on tbe basic frame- 
work, or fail to include a 
“norm*' in the While Paper, 
even though tomorrow's Cabinet 
will want to phrase the White 
Paper in the most conciliatory 
terms possible. 

Mr. Callaghan made It plain at 
last night's meeting that he was 
not prepared to lead a govern¬ 
ment that was in cpllision with 
the unions on pay. 

The decision on whether to ex¬ 
tend dividend control, which 
many Ministers see aE an im¬ 
portant prop to securing 
moderate pay settlements in tbe 
next round, will be taken at to¬ 
morrow's Cabinet It is a deci¬ 
sion fraught with Parliamentary 
and timetable difficulties. 

The underlying message of the 
TUC in an almost ritual re-state¬ 

ment of'its official determination 
to return to voluntary collective 
bargaining, was that there should 
be no guideline, but that if the 
White Paper was too fiercely 
couched that could have serious 

Both sides agreed that a wage 
explosion should be avoided at 
all costs, and the difference 
between the two last night 
appears to have been mainly 
one of emphasis. 

. Mr. Len Murray. TUC general 
secretary, said afterwards that 
he had warned the Government 
not to let incomes policies 
become “habit-forming,’’ and 
that Ministers should trust union 
negotiators in the next 12 
months “not to go daft.' 

Mr. Callaghan told the TUC 
there was no prospect of the 
general level of wage increases 
in the next 12 months being the 
same as this round’s, when a 10 
per cent “ norm ” had become 14 
per cent in practice. 

He also said that moderate pay 
settlements were the best bargain 
for the unions. 

Mr. Healey reminded them of 
The UK undertaking at the Bonn 
Summit to keep up the fight 
against inflation. 

He sketched' a need for 
flexibiltyand further productivity 
bargaining, possibly on the 
sborter working week, but not at 

the- expense of a rise in unit 

Today it is the CBL’s turn to 
make last-minute submissions at 
meetings with the Prime Minister 
and later'with Mr. Roy Hatters- 
ley, the Prices Secretary. The 
question of sanctions and con¬ 
tract clauses is likely to be 
thrashed out. 

Richard Evans writes: It 
remains possible that publication 
of the White Paper will have to 
be delayed until early next week 
If a great deal of redrafting is 
necessary after last night's meet¬ 
ing with the TUC and today's 
with the CBI. 

If Ministers decide to continue 
dividend control, a Bill will be 
necessary rather than a more 
simple Government Order or 

The Government’s only hope 
of securing a majority for the 
legislation is to get the backing 
of the 13 Liberals, 

If legislation is not possible 
Ministers are expected to include 
references in the White Paper 
to continuing voluntary restraint, 
which, could be backed up by 
the threat of using the price con¬ 
trol’ and public purchasing 
weapons at the Government's 

Union opposition unfair 
say Tories Page 10 





Gas profit 
—but prices 
may go 


France seeks UK order 
before new Airbus deal 



FRANCE has stated categorically 
that British participation in the 
£450ra >development programme 
of the B-10 version of the Euro¬ 
pean Airbus would depend on a 
British Airways order for the 
200-seater aircraft 

This was made clear today by 
M. Joel le ’Theule, the French 
Transport Minister, at a Press 
conference, where he appeared 
with M. Bernard Lathiere. chaii^ 
man of Airbus Industrie, and 
Gen. Jacques Mitterrand, chair¬ 
man of Aerospatiale, the main 
French participant in the pre¬ 
dominantly Franco-German Air¬ 
bus consortium. 

At the moment British Aero¬ 
space builds the wings of the 
basic B-2 and B-4 versions of 
the aircraft as a private contrac¬ 

But the B-Z0 will have a new 
wing and the Minister said that 
an agreement in principle 
already existed to divide this 
work between French and Ger¬ 

man companies if British par^ 
ticipation failed. 

.The French seem to have set 
the autumn as the deadline for 
a British decision. Whatever 
the decision, it would be 
“ irreversible in a matter of 
weeks,” said Gen. Mitterrand. 
The French and German Govern¬ 
ments gave the go-ahead for the 
B-10 development last week. 

M. Le Theule stated that the 
consortium would accommodate 
a British order for a Rolls-Royce- 
powered version of the B-10. 

However, British Airways has 
never shown much interest 
either in the larger version of 
the Airbus, whose role is ful¬ 
filled by the Lockheed TrLStar, 
or in the B-10, which the airline 
thinks is too large 

Mr. Eric Varley, the Industry 
Minister, is due in Paris later 
this week to discuss the problem 
of aerospace co-operation. 

Apart from the Airbus 
question the French also want 

PARIS, July IS. 

to ‘ know where Britain stands 
on the decision whether to seek 
co-operation with . the U.S. or 
with European partners od tbe 
development of a new short- 
haul airliner. 

Tbe competing projects are 
the Joint European Transport 
(JET) venture, Boeing's 757 and 
McDonnell Douglas's Advanced 
Technology Medium Range 
(ATMR) design. 

Th French remain co mmi tted, 
at least publicly, to the JET pro¬ 
ject, for which the CFM-S6 
engine, jointly developed by 
General Electric of the U.S. and 
Snecma of France, is ear¬ 

Mr. James Callaghan and Mr. 
Varley have been talking about 
bringing the McDonnell Donglas 
project and the JET scheme into 
a single venture, but to persuade 
the French to accept this would 
mean convincing them to accept 
the Rolls-Royce engine in pre¬ 
ference to their Snecma design. 





Bjr David Freud 

ADULT unemployment rose this 
month for the first time since 
September. However, the 
increase was small and officials 
remain confident that the under¬ 
lying trend is still level or fall- 
ine gently. 

Department of Employment 
figures show that the number 01 
adults out of work in the UK 
rose by 6.600 to 1.37m in the 
month to mid-July, taking 
seasonal factors into account. 
The proportion of the workforce 
unemployed was steady at 5.7 per 

The increase is mainly attribu¬ 
ted to summer school-]eavers, 
wbo are now entering the labour 
market in great numbers and 
are taking jobs that would other¬ 
wise have gone to adults. 

This factor also helps to 
explain the B,400 fall to 211,000 
in vacancies notified to employ¬ 
ment offices. These vacancies, 
estimated at about a third of 
those in tbe country, had risen 
steadily over the previous nine 
months at an average rale of 
7,800 a month. 

Mr. Albert Booth, Employment 
Secretary, said he did not believe 
that tbe figures meant an end to 
the gradual decrease in the num¬ 
ber of unemployed, which is now 
63,600 below the post-war peak 
of last September and 27,200 
below the level of July 1977. 

The number of i>chool-leavers 
joining the register in July was 
97,900. bringing tbe total to 
243,400. This is normally the peak 
month for school-leavers on the 
register, and officials are 
encouraged by the fact that there 
are 10,000 fewer on it this year 
than at the same time last year. 

Because the number of school- 
leavers joining the labour market 
this academic year is 17,000 

Continued on Back Page 
Regional map. Page 7 

£ in New York 


“ I 

July 18 


tfpc* ; 



1 month 


0lS64l« 9 die 

3 monthuJ 

1.23-1.17 ill* 

1.27-1.21 .lis 

12 month. ] 

A. 85-4.66 dis 

4.90-4.70 die 

BRITISH GAS Corporation made 
a pre-tax profit of £lS0-3m in 
the last financial year, about six 
times the previous record profit 
in 1976-77. 

Though the stale-owned cor¬ 
poration expects a further big 
profit this year, certainly ovei 
£120oi, its chairman. Sir Denis 
Rouke. foresees need of a price 
rise in the next 12 months. 

He said yesterday that the 
undertaking aimed to build 
reserves equivalent to 25 per 
cent of net assets, £2.1bn last 

The corporation's reduced 
borrowings and profitability 
enabled it to increase reserves 
from 5 per cent 10 15 per cent 
of these assets, but this was still 
too low for a business of the 
size of British Gas. 


In tbe absence of a realistic 
financial target set by the Guv- 
ernracot, the corporation would 
strive to make a profit, before 
tax but after interest and depre¬ 
ciation charges, of at least 4 per 
cent on turnover, now approach¬ 
ing £3bn, be said. 

In this way reserves should 
be increased from £313m to 
some £600m by the end of 1981. 

Sir Denis said that last year's 
profit, which represented a 7 per 
cent return od a total turnover 
of £2.57bn, was higher than 
planned because of the increase 
in gas tariffs from April last 
year, requested by the Govern¬ 
ment to reduce public-sector 
borrowing bv an additional 

This level of profitability 
would have been far greater had 
British Gas used historic cost¬ 
accounting methods instead of 
current cost-accounting. 

The accounts show that £3S4m 
of extra charges were made 
against trading profit than could 
have been made under tbe 
historic cost-accounting system 
observed by most private 

Sir Denis said that supple¬ 
mentary depreciation was re¬ 
quired in full to maintain the 
business on a- healthy financial 
basis. It was the. right policy for 
the corporation and its customers, 
he said. 

Even so. the corporation's 
14.5m customers can expect an 
increase in prices in the' next 
year though British Gas 
believes that tariffs will not be 
affected before April. 

Service charges may well be 
increased later this year. The 

price restraint. 

The National Gas Consumers' 

important planks in our protec¬ 
tion platform, and it appears m 
have been backed away." 

One reason why gas priL-rs are 
likely to rise is ihal liu- eorimra- 
lion pays higher costs for Norih 
Sea supplies. 

In 1Q77-7S. when the average 
revenue from gas sales was 12.2p 
a therm. British Gas paid sumo 
l.Pp a therm fur supplier. 

Last year, with revenue aver¬ 
aging I4.5p a therm, ousts wore 
nearer 2.9p a therm, excluding 
transmission charges. 

This would have been higher 
but for the late arrival i.f h;:h 
priced gas frnm the Anglo- 
Norwegian Frig" Field m l.i,* 
northern North Sea. li was .1 
reason why profits were higher 
than expected. 

Now that British Gas is a'.mut 
tn receive a much higher pro¬ 
portion of supplies from the 
northern fields its lwis v. ill ri.-e 
much faster. II 1? estim.ih.-rl 
that this year the corporation 
will pay an average of over, on a 

Up to now British Gas has 
bought virtually all tls -supplies 
from other energy-producers, hut 
soon it will exploit it? first 
wholly-owned field, the More- 
cambe discovery in the Irish Sea. 

Morecambe is thought in con¬ 
tain between 2 trillion (miHum- 
million) and 3 trillion cubic 

The electricity industry has 
announced that the off-peak 
tariff will be cut by 20 per 
cent outside Scotland from next 
October. Back Page- 

feet, bigger than several fields 
in the southern sector of tin? 
North Sea, and on a par u'tth 
the West Sole and Viking 

British Gas is already taking 
the initial steps toward develop¬ 
ment of Morecambe. which ti 
likely to feature in a £1.6tm 
investment programme over th-' 
next five years. 

Two-thirds of will 
go toward new transmission, 
distribution and gas stora-je 
developments needed as a result 
oT sales growth; end about :t 
fifth for offshore development. 

Robin Reeves writes: Tnial 
Investments by Wales Gas will 
amount to more than £100m 
over the next five years. Mr. 
Dudley Fisher. Wales Gas chair¬ 
man. announced in Cardiff 

He disclosed that Resides th? 
recently-announced extendi: v.ri* 
of some £43m on new transmis¬ 
sion mains over the n«.Ai five 
years, the largest programme of 
any UK region. Wales Gas 
planned to invest a further £54m. 

Editorial comment. Page 29 
Lex, Back Page 

Imperial in £38m Eastwood bid 


IMPERIAL GROUP, the tobacco, 
brewery and food company, 
launched a surprise £38.2m 
oounter-bid yesterday for J. B. 
Eastwood, the eggs and poultry 
group—topping by almost £7m 
the offer three weeks ago by 
Cargill, the privately owned U.S. 
agricultural concern. 

. Imperial, which has substantial 
egg and poultry interests through 
its Ross Busted Nitrdvit sub¬ 
sidiary, is bidding 160p a share, 
21 per cent above Cargill's 132p 

Cargill, one or tbe world’s 
largest grain traders, said last 
light that it had not yet decided 
whether to make a new offer, 
"riie Eastwood directors meet to¬ 
day to discuss Imperial's bid. 

The Eastwood family and 
directors, controlling a 34.7 per 
cent stake, have said that they 
would accept tbe Cargill offer 
but this of course was before 

the higher bid. Mr. William 
Eastwood, joint managing direc¬ 
tor, said last night that the Imps 
offer “had come out of thB 

There was speculation last 
night that Imperial’s bid might 
attract the attention Of the 
Monopolies Commission. A 
merger would leave the group, 
on Imperial's own admission, 
with a 32 per cent share of the 
UK broiler chicken market 

Under monopoly rules a bid 
can be referred for investigation 
where a merger would lead to 
the combined business having a 
25 per cent share of any one 

The deal would also leave the 
merged business with a strong 
position in UK egg, where J. B. 
Eastwood is said to be largest 
producer, and turkey markets. 

Imperial says that there are 
enough competitive forces in tbe 

industry to prevent its gaining a 
dominant position. 

The group has substantial 
interests in poultry breeding, and 
sees the merger with Eastwood as 
a method of improving its breed¬ 
ing stock. Last year Imperial 
exported about l.4m birds. 

Eastwood's share price climbed 
S5p yesterday to 160p on news 
of tbe counter-bid, while 
Imperial's price slipped lp to 81p. 

The offers for Eastwood have 
come almost, simultaneously with 
tbe group's announcement last 
month that pre-tax profits for 
the ye'ar ending on March 31 
this year had slipped by 42 per 

Cargill, with annual sales of 
more' than SlObn (£5.4bn), has 
said that it wants Eastwood to 
expand its own egg and poultry 
business into the UK 

News Analysis, Page 33 
Lex, Back Page 


European news .— 2-3 Technical page ... 9 Inti. Companies.26-28 

American news . 5 Management page.17 Euromarkets-.26-27 

.. i Arts page...19 Money and Exchanges.28 

Home ?4 .-.-. 20 w ° rid >“*•«*.- 32 

—labour .10 UK Companies 22-25 Fanning, raw materials ... 33 

—Parliament ... 10 Mining . 25 UK stock market .34 

Monetary policy: 

. The dilemma faring tbe 

Fed . 20 

Ignorance of the law on 

product liability.21 

The leasing business 

accounting ..17 

Kulakov death poses 
Kremlin a dilemma . 2 


Turkish economy fuels 

political unrest'. 3 

In -search of El Dorado in 

the Amazon —. 5 

Lornd two: CARICOM call 

for industrial aid . 6 

CSWW link- with First 
Boston of America .r....... 27 

China's Presence felt la 
Hong Kong hanking ...... 28 

Computer finance and 
leasing ——.29-31 

Dutch capital markets ... 11-16 

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Ban Rues ..— 32 

OttMwtf .. U 

GMemiuitcM Guide 18 

■Mrapcu opts. ..— 32 

FT-Aouaria Indices 34 

Cvthnlm 18 

Hflme Contra as ___ 


Lex .--- 

Lombard ..—_ 





Hn and Matter* w 28 

Ratios ----- . U 

SUCl-MR) —— - * 

Stura Information 34-37 

Today's Events! 21 

TV and Radio ...__ IS 

Unit Trusts_ 35 

Wnttlnr .. 31 


Annftase Shmks ... 38 

Brit. Airports Atthy. * 

British Cas __ 

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financial ’'Times 'Wednesday My 19 1978 

European news 



°ii field Kulakov’s death poses dilemma 

M B wen JtL 

plans face 
new delay 


MOSCOW, July 18. 

By Fay Gjester 

OSLO. July IS. 

Norwegian Slat fjord oil and gas 
field, already delayed by diffi¬ 
culties with the field's first plat¬ 
form Sta[fjord A. may be further 
held up because oF planning 
problems with rhe second plat¬ 
form. Sun fjord B. 

Mobil, operator for the Slat- 
fjord "roup of companies 
developing the field, hoped to 
tow Si at fjord B to site in August 
19S1. with production from the 
platform starting the Following 
year. Oslo reports say that design 
work on the platform's steel 
so nvrsl rut-lure is so behind 
schedule that the tow out could 
be delayed until 1982. Con¬ 
struction of Statfjord's B con¬ 
crete base, being built in 
Stavanger by Norwegian con!rat¬ 
io rs. is going ahead according to 

Brown and Root, the engineer¬ 
ing company doing the design 
work on the superstructure, 
concede that the work has been 
delayed, but attribute this to 
changed require men is by Mobil. 
They’ have not said whether the 
delays will lead to postponement 
of the tow out. 

A year's delay in getting Stat- 
fjnrd B on site would further 
increase development costs — 
which are already running at 
several times initial estimates, 
and would postpone revenue 
from the field. 

THE SUDDEN death oE Mr. 
Fyodor Kulakov, one of the 
youngest members of the ruling 
Soviet Politburo and the most 
likely eventual heir to the 
Russian leadership, has left the 
Kremlin with a familiar but 
uncomfortable dilemma. 

Tiic Soviet leadership can now 
move a prominent figure into 
Mr. Kulakov’s vacated place and 
automatically create a new Can¬ 
dida ie who could eventually re¬ 
place Mr. Leonid Brezhnev, the 
Soviet President and Communist 
Party chief. Or they can skirt 
the issue entirely by promoting 
sum eon e whose background and 
interests all but exclude him 

from consideration as the 

successor to Mr. Brezhnev. 

In each previous case, the 
Politburo has chosen to ignore 

opportunities to promote can¬ 
didates for the leadership. But 
in the case of Mr. Kulakov (60). 
who was in charge of the crucial 
agricultural sector, the Politburo 
may Feel compelled to assign his 
post to a major figure. This 
could necessitate a political re¬ 
alignment that they would prefer 
to avoid. Mr. Kulakov was both 
a member of the Politburo and 
a long-time member of the 
Central Committee’s influential 

The authorities are under no 
obligation to appoint a new 
Politburo member—with 13 mem¬ 
bers. the Politburo is still larger 

than usual—and, if the short¬ 
term decision is to hold change 
to a minimum, they may 6ettle 
for appointing a new member to 
the secretariat who would he 
later elevated to Politburo 

Under these circumstances, 
the most Likely successor to Mr. 
Kulakov’s responsibility for agri¬ 
culture would be Mr. Vladimir 
Karlov, Mr. Kulakov’s first 
deputy when he headed the 
Agricultural Department of the 
Central Committee and the 
current head of the Department. 

Another possibility would be 
Mr. Valentin Mesyats, the 
present Minister of Agriculture, 
although he has relatively little 
experience. Neither man would 
be a serious candidate for the 

In the end. the choice may 
hinge on the leadership’s, assess¬ 
ment of the state of agriculture. 
Agricultural production declined 
by an estimated 5 per cent last 

Apparently reacting to this, 
the Central Committee last 
month held its first plenum 
devoted exclusively to agricul¬ 
ture since 1965, and the leader¬ 
ship has set ambitious and 
perhaps uurealisable targets for 
increased agricultural produc¬ 

All this would seem to suggest 
that in the unpredictable world 
of the Kremlin's internal poli¬ 
tics. there may be a strong 
inclination to fill Mr. Kulakov's 
post with someone of acknow- 

Tbe outstanding obstacle to 
Mr. Shcherbttsky being brought 
to Moscow to take over responsi¬ 
bility for agriculture is that It 
would establish him immediately 
as the fifth most important 
Politburo member after Mr. 
Brezhnev, Mr. Alexei Kosygin, 
the Premier, Mr. Andrei Kiril¬ 
enko and Mr. Mikhail Suslov. 
Because of his relative youth, be 
would become heir apparent to 
Mr. Brezhnev. 

Other possibilities within the 
Politburo include Mr. Bimuk- 
hamed Kunayer, the Kazahstau 
party chief, who received some 
credit in connection with the 
bumper gram harvest in Ms 
region in 1976. But, as a Kazak, 
he would almost certainly not be 
promoted any further. Other con¬ 
tenders are Mr. Pyotr Masberov, 
the party leader in Byelorussian 
region, and Mr. Mikhail Solo- 
mentsev (65), the party chief of 
the Russian Federation-ybut 
neither are thought to be likely 
candidates for the top leader- 

The identity o£ the Kremlin's 
future agriculture overseer, 
therefore, poses two questions. 
How' reluctant are the Russians 
to raise the succession issue they 
have tried consistently to avoid? 
And, is the agricultural situation 
sufficiently serious to warrant 
the choice of the apparently 
most capable and politically 
powerful candidate. Mr. Shcher- 
bitsky? The second question 
poses the same dilemma of who 
should succeed Mr. Brezhnev. 

Vladimir -Shcbcrbitsky 

ledged .competence and 

If the Politburo decides that 
Mr. Kulakov's former agricul¬ 
tural post must be filled by a 
Politburo member in urder to 
give it appropriate weight, an 
obvious candidate is Mr. Vladi¬ 
mir Shcherbttsky (tiOl the 
Ukrainian party leader, who was 
bailed last year by Mr. Brezhnev 
for his “energy, willpower and 
Bolshevist ardour’’ when he 
received his second Hero of 
Socialist Labour award in con¬ 
nection with his role in the 
Ukraine’s record 1977 grain 

Slower rise 
in Danish 

Court rules against journalists 

retail prices 



UK watch 
on Helsinki 

B/ Hilary 8ames | 

COPENHAGEN'. Julv 18. 
RETAIL PRICES rose by 3.1 per 
cent in the six months to June, 
according to the official Danish 
wage-adjusting retail price index 
(which excludes indirect taxes). 
Over the p^st year, prices have 
risen by 7.6 per cent—down 
from 9.1 per cent in ibe pre¬ 
vious 12-uiomh period. 

The average index for May to 
July is expected to trigger an 
index-imked wage and salary- 
increase of 60 ore an hour 
(about 1.5 per cent for an 
average industrial worker) in 
the autumn. 

Danish gross domestic product 
rose by j.S per rent in 1977, 
according fn revised estimates 
from the Bureau of Statistics, 
compared with a revised 6.i per 
cent growth figure for 1976. 

Investment last year fell hyj 
3.8 per cent, private consum]* 
tion rose by 0.9 per cent and 
public sector consumption by 2.7 
per cent, i 

A MOSCOW court today upheld 
a slander suit filed against two 
U.S. correspondents by the 
Soviet Stale Committee for Tele¬ 
vision and Radio and ordered 
the correspondents to publish 
retractions within five days. 

The court also ordered Mr. 
Craic Whitney of the New York 
Times and Mr. Hal Piper of the 
Baltimore Sun to divide the costs 
of 2.2S9 roubles (£1.800) 
between them. It did not, how¬ 
ever. ask the' Foreign Ministry 
to review their accreditation 
with a view to revoking it as had 
been asked by the State 

The ruling by the judge Mr. 
Lev Almazov came after Mr. 
Zviad Uamsakhurdia. a Georgian 
dissident imprisoned last May 
for anti-Soviet agitation, testified 
that a film interview on Soviet 
television in which he repented 
his dissident activities was 

Mr. Pipor and Mr. Whitney 
had travelled to Georgia shortly 

after the interview was broad¬ 
cast on May 19 and quoted un¬ 
named friends oE Mr. Gamsak- 
hurdia to the effect that bis 
televised confession was fabri¬ 

In- answer to a question from 
Judge Almazov, Mr. Gamsak- 
hurdia said that the film cor¬ 
responded to what he had said. 

Mr. Whitney, jn his article, 
quoted Mr. Gamsakhurdia’s wife 
Manana as saying that her hus¬ 
band. a former ardent advocate 
of a separate Georgian state, in¬ 
sisted at his trial that he did not 
renounce “ humanitarian and 
the patriotic activities.” 

In the courtroom today the 
word “patriotic” was con- 
conspicuously dropped. Mr. 
Gamsakhurdia referred instead 
to “humanitarian and pedagogic” 
activities which he said had 
nothing to do with his “anti- 
Soviet activities.” 

David Buchan adds from 
Washington: The State Depart¬ 
ment today “deplored" the libel 

verdicts passed on the two 
American correspondents, and a 
spokesman said the action had 
“ obvious implications for [be 
ability of American reporters to 
do their work in the Soviet 
Union.” But he declined to com¬ 
ment on whether any retaliation 
would be taken against Russian 
journalists in Washington, who 
two weeks ago were called in to 
both the White House and State 

The Baltimore Sun’s Managing 
Editor said that his paper 
would not print a retraction, as 
demanded by the Soviet court, 
of the story by Mr. Piper. But 
it would pay the court costs 
imposed and any fine for failing 
to print the retraetlojL The New 
York Times was still considering 
its position. State Department 
officials said the question of 
retraction was entirely for the 
two newspapers to decide, though 
the Department “ was monitoring 
the situation very closely. 


’ ... ‘ - • «'*•* ** - V; ^;■ • .. 

Pj "1C 'Yj] m 

.« IHujJ m i i 1 ■>! 




m m m 


Orlov appeal 

By Our Own Correspondent 

A SOVIET court today rejected 
the appeal by Dr. Yuri Orlov, 
leader of the dissident com¬ 
mittee which tried to monitor 
Soviet observance of the 
Helsinki accords, against bis 
12-year labour camp and exile 
sentence for anti-Soviet agita¬ 

Dr. Orlov's wife. Irina, said 
that the Supreme Court of the 
Russian Federation “ upheld 
without change" the sentence 
given to her husband last May 
in a trial which Dr. Orlov said 
in his appeal was “ one-sided 
and unobjective.” 

He cited as evidence the fact 
that no defence witnesses were’ 
called, that the court bad refused 
to examine relevant documents 
and that he was constantly inter¬ 
rupted by the judge aad’hostile 
spectators when he tried to 
address the court. 

Mrs. Orlov, who was allowed 
to attend the bearing with her 
two adult stepsons, said that the 
State argued that although Dr. 
Orlov said he was not aiming at 
subversion, the number of docu¬ 
ments he produced and the 
methods of their distribution 
Indicated the presence of sub¬ 
versive aims. 

Dr. Orlov was accused at his 
trial of slandering the Soviet 

EEC farm 


Basque party urged r 
to support new ■ jOf' 
Spanish constitution ~ 

By Margaret van Hattom 

By Our Foreign Staff 
DR. DAVID OWEN. Foreign Sec¬ 
retary. ’ has instructed British 
embassies in Russia and Eastern 
Europe to monitor the progress 
of the Soviet bloc in implement¬ 
ing tbe Helsinki Agreement 

In a major review of Rnssian 
activity, and in the wake of the 
series of dissident trials. Dr. 
Owen insisted there bad been 
“little progress” by tbe Soviet 
Union and its allies in imple¬ 
menting the agreement 

“As can be seen from the out¬ 
come of recent trials of mem¬ 
bers of the Helsinki Monitoring 
groups, there has been a marked 
deterioration in the implementa¬ 
tion of Principle 7—“The Respect 
of Human Rights and Fundamen¬ 
tal Freedoms,’ in the Soviet 

Dr. Owen admitted in Commons 
written reply to Sir Harold Wil¬ 
son, that it is “unrealistic to 
expect rapid progress.” 

But he continued: “L have 
instructed our posts in the Soviet 
Union and Eastern Europe to 
provide regular assessments of 
the progress made by their host 
Governments in implementing 
the Final Act. 

“I will make such information 
available to the Commons on a 
six-monthly basis between now 
and the opening of the Madrid 
review conference in Autumn, 


yet another attack on rising 
EE1C spending on agriculture, 
this time as Community Mini¬ 
sters met * preliminary 
review of Commission pro¬ 
posals for the 1979 budget 

Mr. Joel Barnett, UK 
Treasury Secretary, demanded 
curbs on the power of agricul¬ 
ture ministers who, he said, 
“ in taking their decisions, 
leave it to finance and 
budgetary ministers to fond 
whatever money is required to 
meet agricultural policies that 
build up bigger and bigger 

Commission forecasts showed 
that the agriculture budget, 
which already takes up 76 per 
cent of total EEC spending, 
would grow by 19 per cent ta 
1980 and another 14 pe r cent 
In 1981, compared with Com¬ 
munity inflation average of 6 
per cent. 

He eailed for cash limits on 
agricultural spending, to be set 
by finance ministers well 
before agriculture ministers 
began their annual review of 
EEC farm prices. 

Agriculture ministers had 
already largely determined the 
level of spending for 1979 in 
the farm price review earlier 
this year. “If past practice 
is followed, we shall be in 
exactly the same position this 
time next year In relation to 
the preliminary draft budget 
for 1980,” he added. 

This would commit the Com¬ 
munity to a level of spending 
totally unacceptable to the 
British Government. 

Speaking outside the Coun¬ 
cil meeuag, Mr. Barnett 
said later that he had received 
no support for his ideas from 
any of 'the other eight 
members, and that he expected 
a hard fight in getting them 

But, he said, the EEC sum¬ 
mit meeting at Bremen had 
come out clearly against the 
excessive proportion of Com¬ 
munity spending on agricul¬ 
ture, and he hoped to see this 
taken np at ministerial level 
in tbe next few months. 

Sources from other national 
delegations appear to regard 
Mr. Barnett’s arguments with a 
certain amount of cynicism. 

They point out that the UK 
has been demanding cuts in 
agricultural spending and price 
freezes on farm products 
chronically in surplus for some 
time, but has been prepared to 
relax its stand when national 
issues such as milk marketing 
boards or pigmeat subsidies 
were at stake. 


MADRID, July is. 

THE GOVERNMENT and leaders 
of the Socialist Party, the leading 
opposition group, were making a 
last desperate bid today to per¬ 
suade Basque parliamentarians to 
support the final text of the 
Spanish Constitution. 

Parliament Is due to begin a 
crucial 'debate on the constitu¬ 
tional articles relevant to the 

Faced with continuing dead¬ 
lock with the Basques, the 
Government this morning called 
in Sr. Abril Msrtarell, ‘ the 
deputy Prime Minister. Sr. 
Martorell was largely respons¬ 
ible for the smooth transfer of 
power to local officials in the 
Catalan region, and is regarded 
as one of Spain’s more persuasive 

Both the Government and the 
main opposition parties based in 
Madrid fear that a threatened 
rejection of the Constitution by 
the Partido Nacional Vasco 
(PNV). the principal Basque 
parliamentary party, - would 
encourage militant separatism 
in the Basque region and lead 
to renewed, violence during the 
coming referendum. 

Until now the PNV has argued 
that the present text of tbe Con¬ 
stitution does not clarify suffi¬ 
ciently the autonomous status 
of the Basque region. The party 
wants to see clear recognition of 
a series of Basque rights and 
customs dating back to.medieval 
times, which were abolished in 
1876 at the end of tbe Carlist 
wars. These rights would include 
special taxation for the Basque 
region and an autonomous police 
force. The party emphasises that 
these ancient rights should be 
re-established as a result of a 
direct pact with the present 

Throughout the negotiations 
with the PNV both the Govern¬ 
ment and the opposition parties 
have insisted that the constitu¬ 
tional text goes far enough on 
the question of autonomy. Their 
feeling is that amendments giv¬ 
ing a privileged position to the 
Basques would upset other 
regions such as Catalonia, which 
has so far been content with the 
autonomy granted to it 

The Government’s carefully 
elaborated strategy for the 
regions has. in tbe ease of ihe 
Basque land, already involved 
the setting up of a local adminis¬ 
trative body, tbe Basque General 
Council and tbe recognition of 
the Basque language and of the 
Basque national flag, the 
“ ikurrina.” 

In the present climate of 
political unrest in the Basque 
country, most political observers 
have agreed on the necessity for 
the constitution to succeed in 
doing what General Franco failed 
to do for over 40 years—to grant 
fair treatment not just to the 
Basques but to all the regions, 
other than the area immediately 
surrounding Madrid. 

Compromise between the PNV 
and the. Government on the con¬ 
stitution will still leave a num¬ 
ber of problems in the Basque 
region unresolved. 

Tbe PNV, keenly aware of its 
nationalist roots, has always 
feared that any final agreement 
with the central Government 
could be.viewed as a sell-out by 
many of its more militant 
younger members and those 
Basques closer to the extremist 
ETA line. Whatever the final 
decision taken by the Govern¬ 
ment and the PNV both sides 
will clearly be . taking a major 
political gamble. 



Tourist trade prospering 



TOURISM is “perhaps the only 
economic sector. in the world 
that showed continued growth 
in the course of the current re¬ 
cession,” according to a report 
submitted to the UN Economic 
and Social Council in Geneva. 

Prepared by the World 
Tourism Organisation, the re¬ 
port says that some experts pre¬ 
dict that tourism could become 
the m ost important single 
economic activity in the world 
by the year 2000. 

The traditional tourist destina¬ 
tions are gradually becoming 

saturated, the organisation says, 
but while it becomes ever harder 
to find a place off tbe beaten 
track, many developing countries 
have barely tapped their poten¬ 
tial to attract tourists. 

The problem is not so much 
to promote tourism in the Third 
World because it Is bound io 
grow, but to help the countries 
make sure that the growth of 
the industry is balanced, steady 
and without negative effects. It 
is also necessary to help them 
avoid costly mistakes and to 
ensure that they gain a fair 
return for investment 


US.SO.000.000 a** PER CENT 


(Formerly Canon Camera Kabushiki Kaisha) 

HAtdcf* oi the abo™ Bond* are advised 
that copies or the Annual Report ana 
Accounts <H British Steel Corporation lor 
the yaar cfidnd 1st April 1978 a'e avail¬ 
able from S. G. Warburg * Co. Ltd.. 
Coupon Department. St. Albans House. 
Gddsmltn street. London EC2P 2DL. 
IMP July .1978._ 


Notice is hereby given that holders of EUROPEAN DEPOSITARY RECEIPTS to 
Bearer (Share E.D.R.’s). should now present their Receipts and Talons listed 
on special forms available etcher from HIM Samuel ft Co. Limited, 45 Bflcch 
Street. London EC2P 2LX, or from Banque Internationale a Luxembourg. 2 
Boulevard Royal. Luxembourg, in exchange for new RECEIPTS of the tame 
denominations together with Talons and Coupon Sheets incorporating Coupons 
Nos 31-60 Inclusive. 


£500000 BUIS Issued 19-7.7 S 

Now Receipts have been printed showing the present name of the Company 
(now known as CANON INC.), and for ease of identification all now docunterta 
will bear a double letter prefix. 

mature 18.10.7S. Total apeii- 
eations XS-Sn. Total outstanding 

Hill Samuel & Co. Limited, 

45 Beech Street. London EC2P 1LX. 


1st Series Convertible Preferred Stock 

On 22nd July, 197B Coupon No. 13 
of the above bearer stock Is payable 
at a race of SO.27 per share, subject 
to deduction of all applicable local 
taxes, ac the following banks, . 



IS Broad Street (ADR Section) 


33 Lombard Sprtt. 


35 avenue des Arts. 


14 Place Vondbme 

Bockaoheimer Landstrasse S 

Via Armorari. 14—MI LAN. 


Via Boncompagni. 27—ROME. 

Herengracht 54B—AMSTERDAM. 

43 Boulevard Roys) 


„ £240.000 Sille issued 19 July. 1078. 
due IB October. 1978. at 9’ u %. Appli¬ 
cations totalled £2.400.000 and there are 
£240.000 Bllb outstanding. 


_ E4JQO.OOO ants issued 19th July. 
1978, due IBtia October. 1978. at a rate 

of 9*is%. Applications totalled 
£40.000.000. These are-the' only Bills 


Holders of Share Warrants to Bearer 
are Intonped that they will receive pay- 
">£»* ®» die dividend lor 1977 ol 25d per 
share on and after the lath July. 1978.. 

I wiviuBiiu lur 1X1/ oi 

share on and alter the lath Jufy.fBTa.. 
on surrender ot Coupon 47 at the-Office 
*he Bank. BankjfS# House.07-112. 
Leaden hall Street. LondonECSA 4AE. 

Coupons must be’ left three dear days 
lor examination. 

_ N. M. PEGGIE. Secretary. 

Bankalda House. 

107-112. Uwdenhall Street, 

London EC3A 4AE. 


•‘L'l'VJB 1 • 


FiAAMirL T»M*S. puNKheri deity except bun- 
dsn and hoUdHL J S. nibKrlutlon S200.W 
Uir freiabit SWO.Oil lair main per annum. 

Second dun jxbibm Bald at Sew York. VY. 




An independent 
ecumenical monthly 

David Kelly 
July 1978 

View from Moscow: 

The Church of England as 
an ideological adversary 
Peter Hebbletbwaite: 

The Gospel as a handbook 
for revolutionaries 

The war and the churches 

Hidden streams of religious 


Send £6 for 12 issues or write 
for free sample lo: 

Religion & Freedom 
8 Grooms Hill 
London SE10 8ER 

No. 002175 Of 197H 

Chancery Division Companies Court, ip 
ibf blotter or LAUGHTON HILL GARAGE 
LIMITED and in the Maner of Tbe 
Companies Acl IMS. 

Peuiton for tbe Winding up of ibc abovr- 
naim-d Company by the HI ah Court of 
Justice was ou the Tib day of July 
1978. presented lo the said Court by 
GEOFFREY HERRING of The Bungalow. 
MU Lane. Lower Hcyford in the County 
of Oxford, a lorry diirer, and that she 
said Petition is directed to be heard 
before ihe Court sitting at tbe Royal 
Courts or Jus ice. Strand. London WC2A 
ILL, on the 9ih day of October UTS. 
and any creditor or contrtbmory of the 
said Company desirous to support or 
oppose die making of an Order on the 
said Pell Han may appear at the tima , 
or hearing, m person os' by Us counsel. 
Tor ihat purpose: and a copy of (he 
Petition will be furnished by the under- 
aimed to any creditor or coonibatory 
of the said Company requiring socb Copy 
on payment of (be regulated charge for 
(he same. 


5. Vcrulam Buildings. 

Cray's Ian, London WC1R 5LP. 

Ref: AM. Tel: Ol-SC 7383. 

Agants Tor: 


Bicorner, Oxon. 

Solicitors for the Petitioner. 

ROTE.—Any person wno Intends to 
appear on the hearing or ihe said Petition 
must scttp on. or send by post to. the 
above-named notice In wnuiw of his 
Mignuon so 10 do. The notice must mate 
the name and address of the person, or. 
if a Arm the name and address of ihe 
arm and must be signed by the person 
or Qnn. or Us or their solicitor iff anrt 
and must be served, or. If posted, must 
be sent by Pont In sufficient time lo 
reach ihe above-named noi later than 
four o'clock in the aficruOon at the 
6 lh day pf October 19!B- 









Conference? Seminar? 
Company Meeting? Reception? 
Film Preview? 
Advertising Presentation? 

There's no need to hint arowid the West 
End for a suitable venue or viewing theatre. 

Tbe FT Cinema, here in the City, offers seating 
■in comfort for 5CH- people. Full 16mm film - 
projection facilities. National Panasonic W colour 
video tape and Philips 150IM video cassette 
viewing. Electrosonic3601slide presentation. _ 
system. And luxurious private diningrooms with 
extensive catering facilities. 


All enquiries to: El Dorrer, Cinema Manager. 

The Financial Times, Bracken House, 10 Cannon Streep - 
London EC4P4BY.Tei;01-248 8000 [exL67Q>. 

Lancia! Times Wednesday July T§ 197S 



utnv * Bonn will provide Zaire 19 iscard t0 

M. ! A-vmrrt 


° nsf % border warning system I Portuguese 

Crisis in the economy 


h?fdraw^JI A ^ri s f°i SfJjP telecommunications system 

BONN, July IS, 

A V7X LU^UWV A J !«,« 1 j 

eec entry iuels political unrest 

. Western tffmtahJtaSS t formation of any violation— in Bremen on July 6 and 7. 
he indencndenet'of hmh FI 01601 s V ch as occurr ed in Shaba pro- Not least for reasons of history, 
■ountries ° f both Afncafl V “S? in May. West Germany is ready neither 

’ Informed wum* w. . . 7216 “ ®i so ““ 85 ? nother tD deliver arms to areas of ten* 

hat thSe is S^u«?iS, e J^ ess ? ,g ? of W ? st Germany's increas- sion nor to participate directly 
/idine weannnrv^^V 0 ?^ P l°* mgIy act3Ve interest in - the in a military operation—such as 
nitiaf *5® A ? i ^? n continent after years in that staged by French and Bel- 

luietly BPDrovprfhJ tht“^i^ ad £ whlch v ^ e . P™ 6 concern was gian forces to evacuate Euro- 
3nndes tto P JStSL 1 5!. rB,eVa r t overwhelmingly commercial, pea ns from Shaba, 
ivelv small mm Uees 116 rela - One clear indication of the new Indeed there has recently been 
A toiai if nuR m ■ u . course was Bonn's participation a tightening of the weapons 

or a telemmnmSta f- earniar J ted “ the five-nation conference on control law here to reduce the 
or Zaire f?nSw?«^ t i , 2 Q l S JI stem ?“ 30d security prob- possibility thar German-made 

i&1Sn f SS^ 1 M k, ?-“ n “ lems of Zatre - he3d « f’rcnch arms may find their way, even 
he Dcf«Bp! I wiK. de t 8 * t,tm ?? d mTitation in Pari s on June 5. indirectly, to areas of tension, 
hi. Ministry here earlier Another was Chancellor Helmut But Bonn is now prepared to 

aifs knnihpp nM°L° Ut the , de * Schmidt’s visit to Nigeria and play an increasingly active role 
L "i; * e DM3m is available Zambia aL the end of June— in a division of labour among 
£ambfa Cl S ' mam,y ^ rucks * tor his first official trip to Black Western countries. A key aim 

" Hnwpvpr ♦>,* • , Afrmica. At the end of it be is to stop the spread of Soviet 

n havp * 15 fel * urged that copper from Zambia and Cuban influence in Africa. 

ban the OT KSS' 5 p£TS SSoSST CASS'S? X 25 *“ ^ * 

Filbinger determined to stay on 
despite criticism of war role 


Christian Democrat state Pre¬ 
mier of Baden-Wuerttemberg, has 
Dnce again denied reports that 
he intends to resign. There are. 
however, increasing signs within 
the party that his continued pre¬ 
sence in office, vigorously defend¬ 
ing his conduct as a wartime 
naval judge, may now be a poli¬ 
tical liability. 

The Hamburg branch of lhe 
young CDU today adopted a 
formal resolution calling on Herr 
Filbinger to resign. 

In another development, an 
independent public opinion poll 
taken Tor the mass-circulation 
daily Bild-Zeitung within the past 
ft r.k. n hours revealed that two-thirds 
• 'f * ?S[M S of all West Germans now also 
1 * ’ think the Baden-Wuerttemberg 

leader ought to be replaced. 

In a radio interview over the 
weekend. Herr Filbinger was 
criticised by his closest colleague 
in the national CDU. Herr Alfred 
Dregger. who is at present the 
party’s front-line fighter with a 
fair chance of winning control 
or the neighbouring state of 
Hesse in Gefoher's election. 

Seeking to disinguish between 
personal friendship and “critical 
solidarity.” Herr Dregget said it 
was unfortunate that Herr 
Filbinger had chosen to defend 
himself legalistically rather than 
politically against his attackers. 

Herr Filbinger has been criti¬ 
cised for having, as a naval judge 
under the Nazis, sentenced at 
least five deserters to death and 
for having made certain that one 
of these sentences was carried 
out at a time in the last months 
of the war when he might have 
been able to save the condemned 
sailor's life. 

Herr Dregger suggested that 
Herr Filbinger, instead of suing 
the playwright Rolf Hochhuth 

WEST GERMAN car produc¬ 
tion in June rose to 377,600 
units—compared with. 222,900 
in the previous month and 
332.846 in Jane last year, 
Beuter reports from Frank¬ 
furt. However, domestic 
demand was ‘ slack after the 
good level of orders recorded 
earlier in the year, the Auto¬ 
mobile Industry Association 

and several news magazines 
which have published these facts, 
ought to have admitted his mis¬ 

“All the present embarrass¬ 
ment would have beenVavoided 
if he had said be believed be 
had done the right tiring .in a 
tragic situation, that he still 
believed he had done the right 
thing, but that he would place 

BONN, July IS. 

himself before the judgment of 
his fellow citizens and of 
history.” Hen- Dregger sug¬ 

While Herr Dregger's remarks 
were plainly worded as non¬ 
committally as possible, they left 
nn doubt that Herr Filbinger 
determined defence of his con¬ 
duct as nothing more than his 
duty under difficult circum¬ 
stances is now seen as poten¬ 
tially harmful by the Right as 
well as by the more moderate 
elements of the CDU. 

Despite denials both from 
Merr Filbinger's office in Stutt¬ 
gart and from the party’s 
national headquarters in Bonn, 
reports are circulating that he 
may agree to leave office on his 
65th birthday in mid-September. 

Potential successors, accord¬ 
ing to a report in the Frank' 
further Allgemeine Zeitung. in¬ 
clude Herr Manfred Rommel, 
the moderate CDU Mayor of 
Stuttgart and son of the war¬ 
time field marshal, and the 
present Baden-Wuerttemberg In¬ 
terior Minister. Herr Lothat 

At the end of last week Herr 
Filbinger’s chosen line of de¬ 
fence. through the courts, 
suffered a reverse when law 
suits against Herr Hochhuth and 
against the Hamburg w.eekly Die 
Zeit were dismissed by a judge. 

By Our Own Correspondent 

Giscard d*Estaing starts a 
three-day official trip to 
Portugal tomorrow. 

Several mutually important 
economic and political issues 
will be raised In talks between 
President Antonio Raxnaiho 
Eanes and his French counter¬ 

Ties between Portugal and 
France, always strong, have 
been growing since the April, 
1974,- revolution. France, how¬ 
ever has an ambivalent attitude 
to Portuguese entry into the 
European Common Market 

The French, however, do 
want their brother Latins, the 
Portuguese and the Spanish, 
in the Market to counter¬ 
balance tbe German/British 

a tIs . 

Tbe French President has 
made his EEC views known 
during a recent visit to Spain, 
and will be carrying'a similar 
message to Lisbon. 

Portugal has other interests 
for the French. More than a 
million Portuguese emigrants 
live and work In France; the 
State-owned Renault motor 
company has announced the 
biggest foreign investment in 
Portugal since the revolution; 
France has a missile monitor¬ 
ing base on the Portuguese 
Azores; and the French are 
major trading partners and 
top buyers of port wine. 

During meetings with Portu¬ 
guese leaders. President 
Giscard is expected to discuss 
France's initiative in Africa 
and be briefed on the recent 
Angolan-Portuguese summit In 
Guinea Bissau. 

Although the French Presi¬ 
dent is keen to get Portuguese 
backing for his policies in 
Africa, sources here say he 
will probably, get a polite 
refusal. The Portuguese won 
a lot of boons points in the 
region when they remained 
neutral on French actions in 
Zaire during the Shaba 

David White adds from 
Paris; The main problem from 
the French point of view of 
Portuguese entry into the EEC 
is that of overlapping in agri¬ 
cultural produce. Dr. Soares, 
the Portuguese Prime Minister, 
said howerer in an interview 
with Freneh television today, 
that Portugal was not in the 
same boat as Spain as far as 
competing with French farmers 
was concerned. 

THE POLITICAL death toll in 
Turkey this year is now over 
300. Ten years ago the killing 
of two students ^ aQ ^_ 
American 'demonstration pro¬ 
duced outrage throughout the 
country. Today an average of 
two killings are recorded each 
day. The hopes that the Govern¬ 
ment. of Mr- Bulent Ecevit, 
which took office in January, 
would be able to control this 
situation have so far proved 

The violence is now such as 
to raise the question of whether 
civilian rule is threatened, per¬ 
haps deliberately, a recent car¬ 
toon grimly portrays this fear by 
showing a blood-stained hand 
feeling its way up a series of 
steps. It has already passed over 
students and workers, is resting 
on the ethnic groups which make 
up Turkey, and is fingering the 

Us next move, the final one 
before reaching the flames of 
civil war, is to the army. The 
cartoonist, Mr. Bedri Koraman 
of Mitiiyet, leaves undefined who 
is controlling its movement. 

The cartoon’s view of tbe 
future may be pessimistic, bur 
as a record of what has already 
happened it is accurate. The 
universities are almost as tense 
as when they were the battle¬ 
grounds of earlier conflicts. 
Students are still being gunned 
down, as are members of the 
teaching staff such as the able 
and personable Professor Bed- 
rettin Comert of Ankara’s 
Hacettepe University: Dr. 

Comert had been a member of a 
commission _ investigating the 
activities of Right-wing extremists 
on the campus. Equally, for all 
the Government's attempts, the 
teachers’ training colleges are 
still frequently citadels of the 
militants, and clashes between 
groups of workers occur sporadi¬ 

What is relatively new, and in 
the long-term threatens not 
merely political stability but also 
national integrity, is tbe foster¬ 
ing of religious and racial ten¬ 
sions. The split between the 
Sunni and Alevi sects — the 
orthodox Moslems and followers 
of the Caliph Ali — has begun 
to take on a new political nature. 
Tbe Sunnis, who are more 
traditionally minded, tend to sup¬ 
port the right, while the Alevis 
prefer the reformist programme 
of Mr. Ecevit. 

Even more serious are the 
problems with the Kurds. At 
least Sm of these live in tnoun- 


tainous south-east Turkey. Tbe 

Minister of the Interior. Air 
Marshal (retired 1 Irfan Ozayd- 
inli, says that a “ harmful game " 
is being played with the ethnic 
groups to induce the Govern¬ 
ment to take such measures as 
proclaiming martial law. Iu 

April a parcel bomb killed the 
Mayor of Malatya, a Kurd named 
Hamit Feudoglu. His death led 
to three days of riots which 
further exacerbated passions in 
tbe increasingly - disturbed, 
mixed-racial areas. 

While the Turkish extra¬ 
parliamentary Left has long 

Turkey's Minister of the 
Interior sees the roots of tbe 
present near-anarehy in the 
country in the lack of jobs 
and a poor education system. 

espoused the cause of the Kurds, 
it is the extreme Right which 
is widely blamed for tbe recent 
fostering of racial tension: the 
parcel bomb which killed the 
mayor was reportedly made by 
right-wing militants at Ankara's 
Nuclear Research Centre which 
they then controlled. But 
Turkey’s strategic position is 
such that about the only point 
on which all parties agree is that 
outside parties are also stirring 
the pot. 

Prominence has been given in 
the Turkish press to the charge 
that Savak. the secret police of 
the Shah of Iran, had set up a 
Kurdish organisation .active in 
Turkey Kawa. The recent fight¬ 
ing in northern Iraq has also 
seen some military activity in¬ 
side Turkey’s remote Nakkari 

The factors behind the up¬ 
surge of violence in Turkey are 
complex. Switching from a sub¬ 
sistence agricultural economy to 
a partially industrialised market 
economy has led to a massive 
relocation of population, with a 
consequent . breakdown of the 
extended family ties or the vil¬ 
lages and the sprawling growth 
of the urban slums. Such prob¬ 
lems have been accentuated by 
the quadrupling of the popula¬ 
tion since the republic was 
founded in 1923 . 

That such pressures have been 
accommodated by Turkey's post¬ 
war parliamentary system is a 
point which Turkish politicians 
argue is often overlooked. But 
recently a new threat has 
emerged in the shape of the 
economic crisis. Unemployment 
is nearing 20 per cent and con¬ 

sumer prices rose 65 per cent 
in the year to April. 

Mr. Ozaydinli recently blamed 
the exploitation of beliefs and 
ethnic factors on the election 
practices seen under today's 
pluralistic democracy. But he 
insisted that the roois of the 
anarchy lie in the economic 

As with the economic crisis, 
the Ecevit government is a 
victim of the situation it 
inherited in January. But on 
this occasion the two camps of 
militant right and militant left 
were clearly staked out. Their 
leaders deny responsibility for 
the violence, blaming groups 
close to them ideologically hut 
uncontrolled by them. 

Both insist that the violence 
is initiated by their opponents— 
a claim manifestly more true 
when made by the Left This 
shows the same divisions evident 
elsewhere in Europe, with active 
Maoist parties opposing the 
larger pro-Moscow parties—and 
both usually at odds with 
Devgenc. the Revo loti on ary 
Youth. This widespread organi¬ 
sation is more extreme and 
regards attacks as necessary in 
self-defence. However, it is small 
extremist groups such as the 
Acilcilar which arc mainly in¬ 
volved in the violence initialed 
by the Left. 

Such violence may involve 
bank robberies as well as gun¬ 
fire. But violence by the Right 
is both far more frequent, and 
almost always murderous in 
intent. The machine gunning of 
bus queues of left-wing students, 
bombs dropped from windows on 
meetings of their opponents or 
placed in the cares used by them, 
the gunning down Df professors 
or prosecutors looking into their 
activities—these are the usual 
tactics of the militant Right. 

The main organisations on the 
right are the Commandos and 
the Grey Wolves, the shock 
Troops of the Ulku Ocaklari. the 
Idealist Organisations which 
support the neo-fascist Nationalist 
Action Party (NAP) of Colonel 
(retired) Alparslan Turkes. 

Mr. Turkes is noted for the 
contradiction between his 
appeals for peace and the 
actions of the organisations sun- 
porting him. Some of fris youth 
leaders have had convictions for 
murder and his own bodyguard 
was arrested this winter Tor 
throwing a bomb at a mayor 
supporting the present govern¬ 
ment After initially concentrat¬ 
ing his efforts on thp develop- 

. 'V" 

Mr. Ecevlt’s task grows 

ing west of the country. Mr. 
Turkes has changed bis tactics. 
His present thrust is to win :he 
hacking of those elements of 
traditional society who fear the 
changes creeping through 

This involved a massive infil¬ 
tration of the stale machinery 
during the two years when Mr. 
Turkes was Deputy Prime 
Minister. There has also been 
the espousal ot violence lo the 
extent that Mr. Ecevit openly 
says that “the large majority 
of those caught in ai-l.s nf 
violence and convicted are from 
the NAP.” 

The Im votes won by Mr. 
Turkes last year and the mass 
rallies he has since held show 
that he remains a serious force. 
The Government explains lhe 
present surge in violence as a 
reaction against ils taking nf 
opportunities away from mili¬ 
tants inside the Stale machinery. 
But for all the Government's 
attempts to carry out such a 
purge, it is estimated that only 
one-fifth of the NAP's militants 
have yet been swept out. 

One particular problem has 
been with the security forces. 
NAP activists occasionally seem 
warned of police raids and guns 
they are heard to use are often 
not round during such raids. This 
weekend's sacking of the acting 
police chief of Istanbul was a 
sign thar all is not well. The 
Government has so far found it 
hard to control the police, more¬ 
over it has lost the goodwill of 
a substantial body of lower 

Here the crucial question is 
whether the army will erupt into 
tbe political arena as it did in 
the 1971-73'period—at grave cost 
to its reputation. Now. rejecting 
such measures as martial law. 
the Government has preferred to 
set up strengthened “Public 
Order Units” in the south¬ 
eastern provinces most affected 
by communal troubles. 

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Financial .Times Wednesday. July T9 3.978 


Smith urges black leaders 
to deliver the ceasefire 



SAYING THAT it is now up to 
the black members of Rhodesia's 
Transitional Government to 
"deliver the goods.” Mr. Ian 
Smith said today that the 
internal settlement could not 
work without a ceasefire in the 
guerrilla war. 

“There is an agreement," the 
Prime Minister said, "and people 
have to comply with alt parts of 
the agreement. One of the parts 
of the agreement is -that the 
war is going to end and that 
there will be peace — that we 

can hold elections under which 
there will not be intimidation.’' 

Mr. Smith said he and his 
three black colleagues in the 
Executive Council were deter¬ 
mined to make the agreement 
work but he expressed dissatis¬ 
faction with the lack of progress 
in securing a ceasefire and 
blamed the African members of 
the ExecmUe fur this. He said 
ihe implementation of the 
ceasefire was an area where the 
black members of the coalition 

Government were operating 
“almost exclusively." 

Mr. Smith conceded that white 
Rhoedsians were more worried 
than ever before. It was impos¬ 
sible to implement the Salisbury 
agreement in segments. The 
whole thing had to work. 

Asked at what point he would 
consider the settlement to have 
failed or succeeded, Mr. Smith 
said: "Our intention is to succeed 
by December 31.” 

The Prime Minister, who was 
addressing a televised news con¬ 
ference. said he expected the 
detailed constitution to be ready 
within a few weeks. It would 
.then be put to the white elec¬ 
torate at a referendum in 
September Or October. 

The Prime Minister refused 
to speculate on what would 
happen should the settlement 
be rejected at the referendum 
by the white voters. He 
described such suggestions as 
■* negative, defeatist thinking." 

- He was particularly hostile to 

the Anglo-American idea of a 
new ail-party conference embrac¬ 
ing the guerrilla Patriotic Front 
of Mr, Joshua Nkomo and Mr. 
Robert Mugabe. It would be 
disastrous under present circum¬ 
stances to go to such a confer¬ 
ence, he said, adding that attend¬ 
ance at such a meeting would 
be tantamount to a handover 
politically to the Patriotic Front 
as well as a handover to them 
of the security situation. It 
meant the dissolution of the 
existing security forces and 
“ letting the Patriotic Front 
terrorists take over." Mr. Smith 
said it was madness to believe 
in that sort of thing. 

He rejected criticism of the 
slowness with which racial dis¬ 
crimination was being tackled, 
saying that this was a complex 
issue and if racial legislation 
were to be repealed overnight it 
would do far more harm Lo blacks 
than to whites. 

Nigerian ministers to quit 


LAGOS, July IS. 

Government Ministers, including 
Brigadier Joseph Garba, Com¬ 
missioner for External Affairs, 
and Colonel Muhammed Buhari, 
Commissioner for Petroleum 
Resources, are to resign their 
portfolios this month as part of 
the Military Government’s pro¬ 
gramme for a return to civilian 
rule in October next year. 

General Olusegan Obasanjo, 
Nigeria’s Head of State, 
announced last week that some 
of the seven Federal Com¬ 
missioners (Ministers) who 
belong lo the armed forces will 
be redeployed on purely military 
duties by July 24. Those who 
remained Commissioners until 
civilian rule would then have to 
retire from the armed forces. 

The Government has now 
announced that the four 
Ministers arc returning to 
military duties this month. Brig. 

Garba. Col. Buhari, Col. 
Muhammed Magoro. the Com¬ 
missioner for Transport and Col. 
Amadu Ali, the Commissioner 
for Education. 

Three military Commissioners 
will retain their portfolios until 
civilian rule: Major General 
Janies Oluleye, Commissioner of 
Finance. Maj.-General Henry 
Adefopc. Commissioner of 
Labour. and Maj-General 
Muhammed Shuwa. Commis¬ 
sioner of Trade. 

The changes, together with 
the replacement of military 
governors in Nigeria's 19 states 
by interim military administra¬ 
tors are a significant pointer to 
the Government's determination 
that next year's handover to 
civilian rule should take place 
as smoothly as possible and that 
the military should clearly be 
seen to be stepping back from 
political involvement. 

There Is scepticism in political 
quarters here about Mr. Smith's 
warning to the black coalition 
members and bis implied threat 
to cancel the whole deal unless 
they are more successful in 
achieving a ceasefire. His com¬ 
ments are seen as designed to 
boost flagging white morale, and 
to help bis candidate in a by- 
election on Friday, as well as a 
genuine reflection of white irrita¬ 
tion with Mr. Ndabaningi Sithole 
and Bishop Abel Muzorewa. 

These two nationalist leaders 
have repeatedly promised to 
defuse the war, and white anger 
at Bishop Muzorewa increased 
last week when his party said Mr. 
Smith must recall the security 
forces as well as calling on the 
nationalist guerrillas to come 
home in peace. 

Sources here do not believe 
that there can be any going back 
on the internal agreement unless 
it takes the form of the all-party 
conference. They believe that 
there will be elections even if 
there is no ceasefire but that Mr. 
Smith has given notice to bis 
black partners in the coalition 
to increase their efforts to end 
the fighting. 

ASEAN worried by yen debts 


TOKYO. July 18. 

Japanese yen against the dollar 
by 45 per cent over the past 
year and by SO per cent since 
August 1971 is starting to pose 
problems for the repayment by 
developing countries of yen- 
denominated Japanese govern¬ 
ment loans. 

So far the Foreign Ministry 
ha< received no official represen¬ 
tations. hut it is admitted that 
I he issue has cropped up in¬ 
formally in discussions with 
member countries of the Asso¬ 
ciation of South-East Asian 
-Nations. (ASEAN). 

ASEAN members are said to 
he worried that further appre¬ 
ciation nr the yen might 
seriously increase the repayment 
hurden in dollar terms on the 

projected series of Japanese 
loans for the so-called ASEAN 
projects (a series of five major 
plants to be located one in each 
member country with guaranteed 
access to the markets of the 

The outstanding balance of 
yen-denominated Government 
loans to developing nations was 
Yl.45S.2bn at the end of March. 
Of this, nearly Y500hn was con¬ 
tracted before August, 1971 
(when the yen began floating 
up from the previous fixed rate 
of one dollar to Y360). The 
value of pre-1971 loans at the 
original rale of exchange would 
have been approximately Sl.39bn 
but is now closer to $2.5hn as 
a result of yen revaluation.and 
dollar devaluation. 

During the 1977 fiscal year 

(ending last March) repayments 
of yen-denominated loans to 
Japan by developing countries 
totalled Y37.1bn, with most of 
the repayments corresponding to 
pre-1971 loan commitments. 

The problem of what to do 
about repayments on yen- 
denominated loans is expected to 
attract growing attention during 
the next Tew months as Japan 
tries to decide how to honour 
its undertaking to the trade 
development board of the UN 
Conference on Trade and De¬ 
velopment (UNCTAD) to provide 
a measure of relief on existing 
loan repayment obligations. 
Japan. like other aid-giving coun¬ 
tries. has promised to make a 
relief offer in time for the open¬ 
ing of the next main UNCTAD 
conference in Manila next May. 

Zaire may 
end dispute 
with Angola 
at summit 

African leaders, assembled ’ n 
Khartoum for the opening yester¬ 
day of their 15 th summit are 
faced with the divisive issue of 
the role of French and Cuban 
forces on their continent reports 
Reuter. But a spirit more fitting 
for the Organisation of African 
Unity (OAU) may emerge with 
the possible reconciliation 
between Zaire and Angola, at odds 
since the civil war which followed 
Angolan independence from 

Zaire and Angola have 
announced agreement on reopen¬ 
ing the Benguela railway which 
carried copper from Zambia and 
Zaire to the Atlantic port of 
Loblto in Angola until it was 
closed in 1975. The Presidents of 
both countries are in Khartoum 
For the summit and the OAU is to 
set up a commission to supervise 
a return to normal relations 
between the two neighbours and 
the repair and reopening of the 

African leaders at the summit 
will also deal with the war in the 
former Spanish Sahara in which 
Algerian- and Libyan-backed 
Polisarlo guerrillas are Ggbting 
for independence against uie 
Moroccan and Mauritanian armies, 
backed by French Jaguar jets. 
They will also consider a claim for 
recognition from a movement aim¬ 
ing to make the Canary Islands 
independent of Spain. 

Sudan oil shortage 

Petrol rationing has been intro¬ 
duced in Khartoum following a 
severe fuel shortage, writes our 
Sudan correspondent The short¬ 
age is believed to be due to a 
cut-off of supply of crude by Iraq. 
Sudan's main supplier, pending 
settlement by Sudan of bills for 
earlier supplies. 

Mandela still held 

Black nationalist Nelson Mandela 
marked his BOth birthday yester¬ 
day with 15 years of prison be¬ 
hind him and no knowledge of 
whether he wifi ever be released. 
Reuter reports from Johannes¬ 
burg. He is serving a life sentence 
in Robben Island prison off Cape 
Town for plotting sabotage and 
violent revolution. Normally 
prisoners are released after 15 
years, but this is not the case 
with political crimes. 

Iran helicopters 

The Soviet Union claimed yester¬ 
day that an Iranian Army heli¬ 
copter, shot down with the loss 
of its crew over-Soviet territory 
last month, bad Ignored warnings 
to land from fighter aircraft, 
Reuter reports from Moscow. The 
Russians said four helicopters 
with Iranian Army markings were 
intercepted after crossing the 
border. Iran claimed earlier that 
only two helicopters, unarmed 
and on a training flight, strayed 
over, the Soviet Hborder in fog. 
One was destroyed and the other 
damaged and forced to land.. 



(an Indiana corporation) 
Mk% Debentures Due IMS 

Nottct Is Hranrr Orncr that, pursuant to Section 3.01 of the Indenture, dated sa of August IS, 1873 
«ihe Indenture>. between standard Oil Company rthe Company) and Chemical Bang, as Trustee (the 
Trustee), the Company has elected to redeem and will redeem on August 15, J978 (the Redemption Sate), 
5750.000 principal amount at Its a'.-jO Debentures Due 1980 (the Debentures I, at the redemption price 
ot loo # of the principal amount thereof plus accrued Interest to the Redemption Sate. 

The serial numbers of the Debentures which hare been selected lor redemption pursuant to the Inden¬ 
ture arc: 





































































































































































































76+ 1 

77? *5 






























































































































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Oa and aftrr the Redemption Date the Debentures drsjgtmtfd score wj] became due and uayuWa 

*- '" J -- ---- August 15. 1978 

55 Water Street. 

am Main and 7nrteK or ur the main olSce* of Citibank 1 fijrtnerir E:rrt National city Bank* in Amsterdam, 
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Soviet naval move 

The United States believes the 
Soviet Union may deploy one of 
its two aircraft carriers in the 
Pacific for the first time, a senior 
Japanese defence official told 
Reuter in Tokyo. Defence Minister 
Shin Kanemaru. during a recent 
visit to Washington, was told that 
the 40.000-ton Kiev or its sister 
ship; the Minsk, now undergoing 
sea trials in the Black Sea. may 
join the 753-ship Soviet Pacific 
fleet. A Soviet carrier in the Paci¬ 
fic could have a bearing on the 
growing conflict between China 
and Vietnam. 

Japan nuclear ship 

Despite threats of violent pro¬ 
tests, the Japanese Government 
will go ahead with plans to move 
its controversial nuclear-powered 
ship Mutsu to Southern Japan for 
lengthy repairs. Reuter reports 
from Tokyo. The 8,214-ton ship, 
laid up since a radiation leak 
marred its maiden voyage in 1874. 
will move to Sasebo near Naga¬ 
saki in October. The ship, with 
its faulty nuclear reactor intact 
wifi undergo repairs for three 
years in a shipyard which is in 
financial difficulty and needs the 
contract a Government spokes¬ 
man said. 

Indian flood havoc 

Major rivers of the Northern 
Indian state of Uttar Pradesh have 
flooded hundreds of villages in the 
past week, affect ins more than 
lm people and claiming at least 
20 lives. Reuter reports from New 
Delhi. In Deoria district 17 people 
have been killed, most washed 
away by the swirling waters or 
buried under collapsing houses. 

Delhi gold sales 

The Indian Government is con¬ 
sidering a scheme to supplement 
its fortnightly gold auctions with 
direct sales of gold to goldsmiths. 
Reuter reports from New Delhi. 
Finance Minister H. M. Patel told 
Parliament that the gold auction 
policy was basically sound and 
called for no radical revision. The 
object had not been to reduce 

gold prices but w discourage 
large-scale smuggling. 


The flight from Vietnam 



FROM A SHORT distance away, 
the narrow fishermen’s harbour 
at Feihai resembles a corner of 
Hong Kong’s Aberdeen— jammed 
with a motley of flimsy canopied 
boats swarming lilse cells on a 
microscope slide. 

From a little closer you see 
that this is no Aberdeen, with its 
floating restaurants, tourists and 
crafty oarsmen for hire at rather 
more than the journey is woruj- 
At Peihai there is none of Hong 
Kong’s commercial gloss—the 
boat people here have the 
seriousness of those who have 
recently experienced poverty, 
inequity and the indignities oE 
racist victimisation. 

Peihai is a Sshiog and cargo 
centre in Kwangsi province, 
built at the tip of a promontory 
which dangles into the Gulf of 
Tonkin not far from the coast 
of Vietnam. 

The town is a refuge for 
10,000 flsherfolk whose families 
had lived and fished for genera¬ 
tions among Vietnam's offshore 
islands, hundreds of kilometres 
to the south. Since last March 
more than 1J250 of their tiny 
boats have been crowding into 
Peihai harbour, their owners 
pouring out stories of extortion, 
deprivation and humiliation at 
the hands of Vietnamese officials. 

These are “overseas Chinese.” 
some of the I.5m who have made 
their homes in Vietnam and some 
of the 150,000 who have fled or 
been forced back to China in the 
past four months. Their offence, 
they say, was their being 

Chinese, and their punishment 
expulsion. The unacceptable 

alternative was to renounce their 
Chinese nationality, with no 
guarantee that this would ensure 
their security in their adopted 

They talk readily about their 
experiences io Vietnam. Foreign 
journalists who have been 

allowed to visit the border have 
had free access to the refugees, 
interviewing a number of new 
arrivals before Chinese officials 
had talked with them. “See for 
yourself" was the Chinese 
response to scepticis. niabout tbeir 
stories. The -refugees' informa¬ 
tion is convincing evidence of a 
determined campaign by Vietnam 
to rid itself of ail things Chinese. 

Most of the refugee fishing 
families had sailed their boats 
290 km (about ISO miles) from 
Ji Po Island, a community once 
sh’ared peacebty with Vietnamese 
fishermen, living according to 
Vietnamese diatom, selling their 
fish in a Vietnamese market 

They wanted to stay in that 
familiar environment but as the 
anti-Chinese campaign developed, 
the living became precarious and 
then impossible. ' , 

The fishermen told of increas¬ 
ing pressure from Vietnamese 
officials to adopt Vietnamese 
nationality. To most this would 
have been an unthinkable 
betrayal of their ancestry. So 
the harassment began, -at first 

The Chinese fishermen found 
their monthly grain rations 

mittee—a sort of town boss. He. 
is 15 in, balding and greets 
foreigners in half-a-dozen 
languages- • f 

Han’s job is to oversee the task 
of accommodating a refugee 
jpfln.v which has suddenly added 
30 per cent to the size of Peihai's 
fishing fleet. He is enthusiastic 
about China's plans for- the 
future of the refugees. 

The town supplies some of 
fheir food, says Han, and those 
-with serviceable boats have 
joined the local fishing fleet 

relations, 9 tt. 

In 1964, says Yang, an ex-highllj * 

school, teacher ih. Hanoi, Viet-!* 3 
□am made its! first-'moves to' 

CHINA ALLEGED yesterday 
that authorities in Vietnam are 
forcing large numbers of 
ethnic Chinese to storm border 
check-points to return lo their 
homeland, Reuter reports from 
Hong Kong. The New China 
News Agency said that Viet¬ 
namese authorities were 
deliberately trying to wreck the 
Sino-Vietnamese border control 
accord by directing “Uieir per¬ 
sonnel at the grass roots to go 
on driving to the border 
victimised Chinese who have 
not gone through the for¬ 
malities for return to China.” 
More than 150,000 ethnic 
Chinese had now been expelled - 
by Vietnam, the agency said. 

K vr a n g.s i 


1 • . 

reduced, and the grain they 
received was rotten. When they 
brought -their fish ashore .the 
state extracted an arbitrary 
“ quota ” which left them no 
food for tbeir families. 

They were forced to observe 
especially harsh maritime 
regulations, their fishing nets 
were exorbitantly taxed and 
they were heavily penalised for 
trivial infringements. Some had 
their boats confiscated.' 

Quarrels broke out as the 
Chinese fishermen saw their 
Vietnamese neighbours un: 
touched by such 1 measures. 
When they fought and sought 
arbitration the Vietnamese 
officials invariably found . in 
favour of the Vietnamese. 

In the past many Chinese 
nationals at Ji Po had earned 
local official rank or become 
members of the Vietnamese 
Workers Party.' Even these-'were 
tormented, fired from their 
positions and deprived of food,- 

Frustration became despera¬ 
tion and the Chinese boats began 
to leave Ji Po. first in a trickle 
and then in scores eacb day to 
make the ten-day voyage 'to 
Peihai. 1'-. .’ 

Han Ke is vice-chairman' of 
the Pethai Revolutionary Com¬ 

al ready. feeding themselves and 
selling their surplus catch to the 

As some of their boats are' 
old and unsuitable for the Peihai 
style of fishing, the town’s work 
teams will start building new 
ones—100 of them at A$100,000 
each, and 100 smaller craft for 
inshore work. Peihai will also 
have a new $20m fishing boat 
harbour, paid for by Peking, to 
shelter its new fleet 

Blocks of flats are going up in 
the town to house the refugees. 

■ Meanwhile, In Canton, there Is 
a gracious structure in a . lush 
garden which housed the 
Vietnamese consulate general 
until a month ago, when China 
ordered Vietnamese diplomats 
out of Canton, Nanning and 
Kunming. The building stands 
empty and the Chinese govern¬ 
ment has no immediate plans to 
use it so it remains a symbol of 
Chiuas exasperated response to 
Vietnam’s treatment of the oveiv 
seas Chinese. China has also 
cancelled its aid projects in 
Vietnam, said to have been worth 
about $3O0m a year. 

Yang Ting Ting, a refugee 
schoolteacher, may be quietly 
satisfied about the justice of the 
dissolution of Sino-Vietnamese 

“nationalise" the Chinese r*sf. 
dents. School classes in Chinese - ,u 
history and geography were ban- 
tied and Chinese language lea. 
sons limited to two or three a 

By 1987. .Chinese . language 
signs were disappearing from the J 
streets of Hanoi-and-Haiphong, 
Publicity for-Chinese aid pro. 
jects also disappeared, but Rus¬ 
sian contributions were fre- -. 
quently and warmly-mentioned. 

Since .1970 no Chinese 
nationals had been allowed to 
apply for admission to Vietna¬ 
mese universities said Yang. Tu- 
1974 be’bad passed with distlnc- - 
tion a an examination for- 
chemistry teachers but was not 
allowed to teach, being given .■ 
odd jobs in the education depart¬ 
ment instead.'. His Chinese wife, 
a mathematics ' .teacher,. was 
sacked when sbe refused to urge 
young .Chinese (o' change -their - 

Some 250 kins (about 158 miles) . 
from Nanning, the capital of 
Kwangsi Province is Tunghsing, 
where-more than S4J100 refugees 
have crossed the Peltiii River into - 
China in the 'past four months. 
Barbed wire now seals off the 
Vietnamese riv.erbank where 
cross-border friends used to meet, 
and the “ Peace and Friendship ” 
bridge is the only way across the 1 
border. Once Chinese trucks 
rumbled southwards . over the " 
bridge carrying supplies and 
military aid to Vietnam, but now 
the only traffic Is refugees moving 
in the apposite direction. 

Many refugees at Tunghsing 
told of attempts to compel them 
to take Vietnamese citizenship. 
of dismissal from tbeir jobs, of 
their sons being drafted, into the 
Vietnamese army and sent, they 
think, to the Cambodian front 
of reduced food rations and 
increased taxes,..and seizure of ' 
their crops and bank accounts. 

Further west, at Pinghsiang, 
17,000, refugees have walked - 
across the. border after reaching 
the rail terminus 10 kms inside 

When the-tide will-go down is 
a 1 matter of nebulous speculation. 
But a Chinese official in Nanning 
gave, a blunt hint that it might 
be- a: long . time away. “ The 
Vietnamese policy is that no over¬ 
seas Chinese who wishes to retain 
Chinese nationality will be 
allowed to remain in Vietnam," 
be said. 



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July 12, J?7S 


Financial Times Wednesday July 19 1978 


n ^Hl NY state likely 

to legislate 




Searching for El Dorado in the Amazon 


on foreign banks 


■JEW YORK State legislators are 
Kpected to rush through a bill 
vhich would make it more diffl- 
■ult lor foreign banks to acquire 
■tate-based commercial banks. 

Miss Muriel Siebert, the state’s 
tanking Superintendent, said to- 
lay that the legislation has been 
ntroduced into the New York 
»tate Assembly. The law would, 
nnong other things, require 
id van ce approval by the state 
tanking authorities for the acqui¬ 
sition of a 10 per cent or more 
;tuse in a New York state 
chartered bank. At present, 
approval is needed for a stake 
icquired thrnugh voted shares 

Miss Siebert said that the new 
aw, which is supported by 
jovernor Hugh Carev and i"s 
widely expected to be passed 
■apidly through the State 
Assembly, was in part inspired 
jv the wave of foreign takeovers 
if New York state banks. This 
'ear the Hongkong and Shanghai 
Sank has announced that It is 
leeking 51 per cent of the shares 
if Marine Midland Bank, one of 
he largest banks in the state 
rod the 13th larges* bank in the 
J.S. National Westminster Bank 
k seeking 75 Der cent of the 
hares of the National Bank of 
'forth America. In addition, five 
trab businessmen associated 
*-ith Mr. Bert Lance would take 
rontrol of two small New York 
lanks as a result of acquiring 25 
aer cent of the equity of the 
Financial General Bank, a 
Washington-based bank holding 


Financial General owns 67 per 
rent of the equity of the Bank 
>f Commerce in New York and 
t3 per cent of the Community 
State Bank in Albany. So far 
tone of these foreign banks or 
'oreign-controlled interests has 
ipplied formally for New York 
;tate Banking Department 
ipproval for their proposals, 

NEW YORK, July 18. 

although informal discussions 

have taken place in some cases. 

The Banking Department says 
that the only application pend¬ 
ing is by a Venezuelan business¬ 
man, Sr. Jose Alvarez-Stelilng, 
who is president of Banco Del 
Centro Consolidado CA of 

The state banking authorities 
are concerned that, as the law 
stands, a single bank holding 
company can be acquired with¬ 
out prior approval. Approval is 
needed when the acquired shares 
are voted for, but by that time 
the acquisition of a controlling 
stake might appear to be a fait 
accompli and difficult to Teverse. 
At present, prior approval is 
needed to become a bank hold¬ 
ing company. Such companies 
own 10 per cent or more of at 
least two banks. 

Thus an organisation (or 
individual! such as a foreign 
bank which owns no banks in 
New York can legally acquire 10 
per cent or more of the shares 
of a New York bank without 
prior approvaL State banking 
authorities say that the moves by 
the Hongkong and Shanghai and 
the National Westminster, will 
come under the jurisdiction of the 
□ew law, if it is passed. 

These acquisitions already 
come under federal banking 
laws, requiring prior approval 
from the Federal Reserve Board. 
In the case of the federal law, 
acquisition requires approval if it 
is made by a corporate entity 
but not if it is made by an 

The New York state grants 
approval on acquisition when it is 
satisfied on such factors- as the 
transaction’s impact on competi¬ 
tion, the public interest and the 
effect on creditors and depositors. 

U-S. money policy. Page 20 

New Peruvian Cabinet to 
have civilian majority 


:IVIL1ANS are to get about ten 
~jf the 16 portfolios in a new 
Cabinet being pul together by 
iencral Francisco Morales 
iermude?. iho Peruvian presi- 
lenl. The constituent assembly 
rbich was circled on June 18 is 
—o be inaugurated on July .28 
»hen it will begin its task of 
'rawing up a new constitution 
o return the government to 
ivilian hands. 

The official winners of the 
unc 18 elections for the 
lelegates to the 100-seat consti- 
uent assembly are the middle-of- 
tae-rood APRA party (led by 
he octogenarian Sr. Victor Raul 
laya de la Torre). 37 seats; the 
ight-wmg People’s Christian 
’arty (PPC) led by Sr. Luis 
tednya Reyes. 25 seats; the 
■OCF.P, a Maoist-Trotskyite 
llianee led by Srs. Genaro 
.edesnia and Hugo Blanco, 12 
.cals; the Communist Party, six 
eats; the Revolutionary Socialist 
’arty (PSRi led by retired 
leneral Leonidas Rodriguez, six 
scats: and the Popular Demo- 
■ralic Union (UDP), a left-wing 
redes union group, four seats 

LIMA. July 18. 

Smaller parties won the. other 

Although the Centre and right- 
wing parties form a convincing 
majority, the Communists and 
far-Left groups won 30 per cent 
of the seats. This is by no hieans 
a solid blocfc however *(aois. is 
the Centre and Right, for that 
matter) and there is consider¬ 
able uncertainty about the 
direction which the assembly, 
the first sovereign civilian body 
in Peru for ten years of military 
rule, will take. 

At the same time, negotiations 
are under way in Lima for the 
signing of a new stand-by credit 
arrangement with the Inter¬ 
national Monetary Fund. Signa¬ 
ture of the letter of intent is 
expected about July 25, and this 
will signal an even tighter pro¬ 
gramme of fiscal austerity, 
sharply reduced private liquidity 
and other recessionary measures. 
Interest rates will be put up by 
12 per cent on August 1 to an 
average of SO per cent per 
annum, and the rate of mini- 
devaluations will be doubled. 

Debt repayment deferral 


’ERU IS expected to sign an 
icrcemcot here tomorrow to 
lefer payment for six months on 
»art of its massive debt to 
orcign banks. The agreement 
vhich was tentatively reached 
asi month, is part of the effort 
\v Peru to stave off a balance of 
lavmems crisis which stems 
rom this debt, which the Lima 
lovernment now estimates to be 

Manufacturers Hanover Trust, 
he U.S. bank which leads the 
leering committee of 1*0 
nrcijrn banks which are Peru s 
reditors. confirmed that the sign- 
n-» would take place at that 
>ank, but declined to give details. 
\ full announcement would be 
Hade tomorrow, he said. 

However, Sr Fernando Reus, 
lireclor of public credit at the 
leruvian Economy Ministry, was 
moled here today as saying that 

NEW YORK, July 18. 

the agreement would defer till 
the end of the year payment of 
$185m, representing principal and 
amortisation on outstanding 
loans. In addition, Sr Reus said, 
Peru would repay S306m worth 
of short-term debts this year, 
including $121m in amortisa¬ 

But although this latest agree¬ 
ment will give Peru a useful 
breathing space until the end of 
the year, it does not provide the 
long-term debt restructuring 
which it is seeking from its 
foreign creditors. According to 
banking sources here, this is still 
dependent on Peru coming to an 
agreement with the International 
Monetary Fund on measures to 
reform the economy. 

The steering committee is 
understood to have favoured the 
short-term roll-over to enable 
these talks to continue under 
less pressure. 

Light thrown on Ford 
president’s resignation 


\ SENIOR Ford Motor Company 
•vocative yesterday threw An; 
her light on the departure of 
,lr. Lee lacocca. from the pre- 
idcncy of the second biggest 
:sr producer in Inc U.S. 

Mr. lacocca resigned last 
phursdav under pressure from 
dr. HenVy Ford II. the company 
rhiiinnan. after nt? arly nmc 
■eore in what was until recently 
he second most important joo 
n the company. . „ , 

One of the men tJPPCj** * 
iossible successor, Mr. William 
•tourke. who Is executive vice- 
•resident or Ford’s North Amen- 
•an automotive operations, 
idmitted yesterday that Mr. 
acocea's departure was not 
ulally unexpected. 

Doubts about Mr. lacocca s 
'mure were raised In April when 
,lr Ford announced a re-organi-’inn of top management. This 
•Hoct ivoiv demoted the company 
iresident a I the expense of Mr. 
•lu lip Caldwell, who was 
ippomlcd to the new post of 
•ice-chairman, and to whom Mr. 
arocca was to report. 

According to 
mrls here, a coalition of outside 

NEW YORK, July 18. 

directors and Ford dealers 
rallied to Mr. Iacocca’s defence 
and Mr. Ford was asked to can¬ 
cel the re-organisation. Mr. Ford 
responded by warning that he 
would resign unless his decision 
was accepted. 

A short truce was then 
apparently declared. But while 
Mr. Ford was in Asia on busi¬ 
ness in May, Mr. lacocca is said 
to have had meetings with out¬ 
side directors. Mr. Ford saw 
this, as a challenge to Ms 
authority. The climax came last 
Thursday afternoon when Mr. 
Ford asked for the presidents 
resignation. _ 

This is supposed to become 
effective on October 15, but Mr. 
Bourke indicated yesterday that 
Mr. lacocca had already been 
shorn of most of his responsi¬ 
bilities. Among other things, 
the three executive vice-pro®** 
dents who report to Mr. lacocca 
have now been told to report to 
Mr. Caldwell. 

•Mr. Bourke denied that any 
specific issue bad created the 
rift which led to Mr. lacocca s 
resignation - . • . • _v.\ . 

• 'Men and Matters, Page 30 

Administration said today 
there were 32 bidders at the 
gold sale it was holding for the 

This was the same number 
of bidders as at the last 
auction. For sale were 300,000 
ounces of gold. 

The col-ofT price at the 
auction today was S185.05 an 
ounce, an unofficial Renters 
compilation showed. 

When the bids opened, the 
Bank of Oman was one of the 
big bidders. It offered to 
purchase 100,000 ounces at 
5185.06 an ounee and another 
100,000 ounces' at $185.02 an 

The other bidders appeared 
to be the same group of gold 
dealers and banks which has 
participated in previous 
Treasury sales. 

TOe gold from official UJS. 
reserves is being sold for 
dollars, and deliveries will be 
made later in New York. 

Samuel Montague and Co. 
of London offered between 
$184 and $183.20 per ounce 
for a total of 10,000 ounces. 

Swiss Bank Corporation of 
Zurich bid for 128,000 ounces 
at prices ranging from $184J>7 
to $185.07 per ounce, 

The highest bid opened so 
far was from Adashi Gold Co. 
of New York, which hid $189 
an ounce for 4,000 ounces. 

THE 4.9m square miles of the 
Amazon basin, covering 32 per 
cent of South America and 
sprawling over eight countries, 
have dwelt on the fringe of 
history and in the dreams of 
seekers of El Dorado for 

Its dense rain forests provide 
25 per cent of the earth’s oxygen. 
Its 31,000-mile network of water¬ 
ways, dominated by the 3,600 
mile long Amazon River, yields 
one-fifth of the world's, fresh 
water (the largest fresh water 
system on the planet). Its sub¬ 
soil harbours diamonds, gold, 
iron ore, manganese, bauxite, 
nickel. copper. cassiterite, 
tungsten and other important 

Early explorers and naturalists 
have been followed by miners, 
rubber barons, timber merchants, 
missionaries, industrialists and 
scientists, trying to penetrate 
and tame jungles where the sun 
has never intruded. 

Foreigners were quicker to try 
to exploit the Amazon's wealth 
than the states officially control¬ 
ling it. They moved up river, into 
the jungle, and deliberately or 
accidentally (through exposing 
them to white men's diseases) 
decimated the Indian tribes that 
had inhabited the Amazon for 
thousands of years. 

The first boom occurred in the 
19th century, when the Amazon’s 
latex trees supplied all of the 
world's rubber. After an English¬ 
man had smuggled .out the seeds, 
planted them in Kew Gardens 
and subsequently shipped the 
saplings to Ceylon (where they 
prospered and spread to Malaya) 
the boom burst Thriving 
“ rubber cities" like Manaus, 
900 miles up river from the 

Atlantic estuary, have crumbled. 
Today, however, Manaus has 
revived, as a wide-open free port 
and smugglers’ paradise. 

Technologically backward by 
comparison to the United States, 
first Brazil then other countries 
in the area entrusted U.S. 

companies . with the task of 
making geological surveys of 
the Amazon, from the air. In 
1965, when a Brazilian team of 
geologists hacked its way 
through thp. Para jungle, in 
search of minerals, it walked 
over the Carajas iron pre 
reserves (estimated at ISbn 
tonnes), dismissing them as 
calcareous rock. Shortly after¬ 
wards Union Carbide, then U.S. 
Steel, tiring expert surveys, 
discovered the reserves. Since 
1971; Brazil's mining authorities 
have issued 14,000 prospecting 
rights—more than half to foreign 
companies, and only a small 
fraction for active prospecting. 

This has led to repeated 
accusations that foreign interests 
are sitting.on prospecting rigbts, 
warding off competition, with 
tittle intention of working them 
urnil the situation is fully in 
their favour. 

Oil has been discovered in the 
Amazon region—in Ecuador, 
Peru and Brazil, as well as 
abundant natural gas in Bolivia. 
In Brazil, vast Amazon farming, 
ranching and pulp projects con¬ 
trolled by the U.S. multi¬ 
millionaire Daniel K. Ludwig, 
who makes sure his holdings are 
guarded from outside intrusion, 
have cut into the Para area. The 
fact that the Amazon soil has not 
proved to be as fertile as 
originally assumed now provides 
a form of natural brake on 

similar projects. This, ecologists 
feel, is all to the good. 
Devastation of Amazon forests 
has proceeded apace, neverthe¬ 
less. By 1974, 24 per cent of 
forestry reserves had been 
cleared-—reducing the wooded 
area from 2.2m to 1.6Sm square 
miles. In 1975 alone. 62.500 
. square miles were cleared—a 


nam and Guyana—came to terms 
with their territorial responsibili¬ 
ties. At Brazilian instigation 
they have drawn up a pact for 
the “ harmonious development of 
each country’s Amazon territory, 
so that joint actions may promote 
equitable and mutually advan¬ 
tageous results, as well as the 
conservation of the environment 

AMAZONAS Brazil/. 

.XI ./ 


v l O c e oSi -5 




^ RMAAWfe 

rate which, were is pursued, 
would lead to ihe death of all 
Erazil’s forests by 2005. 

Many Brazilian officials have 
expressed resentment at inter¬ 
national criticism of Amazon 
clearances. President Ernesto 
Geisel has suggested that these 
are “not based on scientific fact.” 
Nevertheless, Brazil need not 
look far to understand the disas¬ 
trous effects of massive defores- 
attlon. Clearances of southern 
forests in Parana in recent years, 
for large-scale coffee and soya 
planting, have led to prolonged 
droughts and shrinking rivers 
with calamitous economic effects. 

Finally, after first accepting 
the notion of the Amazon as a 
hostile untouchable wilderness, 
then letting others lay hands on 
its resources, the eight Amazon 
nations—Brazil, Venezuela. Peru, 
Colombia. Ecuador. Bolivia. Suri¬ 

and rational use of the natural 
resources of these territories.” 

Specifically, the pact con¬ 
cluded on July 3, 1968. calls for 
the exchange of scientific 
information, of recommendations 
for rational use of waterways, for 
wide freedom of shipping with 
emphasis on trade, co-ordination 
of local health services and 
frontier trade, efforts to promote 
tourism, and conservation of the 
flora, fauna and water resources 
of the area. 

The pact was negotiated within 
one year, remarkably rapid for 
a joint enterprise' in South 
America where rivalries and 
mutual suspicion tend to take the 
edge off searches Tor common 
ground. Nevertheless, before 
the others would accept Brazil's 
initiative, it had to drop its 
ciicxTpctinn that “nhvsical integra¬ 

tion" of the Amazon be the 
linchpin, and replace it by 
“physical co-operation.” 

Several bilateral agreements 
already exist between Brazil and 
its Amazon neighbours—but the 
stress laid in the pact on cun.ner¬ 
vation of the environment is a 
new departure. If properly- 
applied. it could produce short 
and long-range benefits, for the 
signatories and for the ecology 
of the world. 

Its new spirit of broad South 
American co-operation has 
already produced a vital side- 
effect for Bolivia: Brazil has 
agreed to dear navigation 
channels through ils territory 
so that Bolivia can fulfil its long¬ 
standing aspiration for access to 
the sea—the Atlantic. Chile 
blocks Bolivian access to the 

The pact also offers the possi¬ 
bility of a common front again-’t 
what South Americans call 
“threat* of internationalisalmn 
of the Amazon.” 

The threat first came in the 
19lh century, wben ihe U.S.. 
Britain and France called for 
internationalisation or the 
Amazon. Today, each Amazon 
country interprets it differently 
—economically or ecologically. 

If tile pact is applied 
conscientiously, it could stop 
outside exploitation of tin? 
Amazon’s resources. while 
accepting technological advice 
that would help preserve ihe 
bulk of its wealth. It is 
obviously ion soon to tell 
whether " harmonious, rational 
development” will be inter¬ 
preted as joint approval only of 
projects that make use of some 
Amazon resources without 
depredation of others. 


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Financial Times Wednesday July 19 1975 

■ ■vi 


Japanese surplus with US 
doubled in first six months 


TOKYO, July IS. 

JAPAN'S trade surplus with the 
U.S. roughly doubled In the first 
six months of this year while Its 
surplus with the EEC was stable 
and that with the UK declined, 
cusionis clearance figures from 
the Japanese Ministry of Finance 
showed today. 

Customs clearance figures 
understate the size of Japan's 
trade surpluses because they in¬ 
clude freight, insurance, and re¬ 
lated charges in the prices of 
imports, but not in exports. 

Nonetheless, the figures indi¬ 
cate that Japan ran an export 
surplus with the U.S. of Sa.USbn 
for the first six months of the 
year, compared with $2.3bn in 

the comparable period last year. 
The surplus with the EEC was 
S2.1bn._ while the surplus with 
the UK declined from S456m to 

The Japanese customs clear¬ 
ance surplus on global trade in¬ 
creased dramatically, from $2.3bn 
to SS.fibo. Exports increased 22 
per cent in dollar terms 

Other than the U.S.. the big¬ 
gest Losers were the developing 
countries of south and east Asia, 
which moved from nearly bal¬ 
anced trade to a deficit of S2.5bn. 

Britain .delivered one of the 
best national trade performances 
listed hy the Japanese Govern¬ 
ment Exports from Japan were 

up only 12 per cent in dollar 
terms, while exports from Britain 
rose 40 per cent. But Britain was 
starting from a position of ex¬ 
tremely unbalanced trade. 

Britain and other European 
countries were well ahead of the 
U.S. in demanding that Japan 
should reduce its trade surplus 
with them. The U.S. began 
strongly to demand lower sur¬ 
pluses only last autumn. 

The increase in the Japanese 
trade surplus with the U.S. arose 
largely out of sluggishness in 
Japan's agricultural imports and 
the rapid increase in U.S. sales 
of all types oF Japanese 
machinery (including cars). 

UK must export high technology 


in overseas projects must con¬ 
centrate on higher technology 
contracts if they are to remain 
competitive with both industria¬ 
lised and developing countries, 
the British Overseas Projects 
Board warned yesterday. 

The board said there should 
be more involvement in manage¬ 
ment contracting and package 
deals which may embrace fund¬ 
ing. financial involvement, or 
participation in equity or 
bilateral trade. 

According to the board’s 
annual report, published yester¬ 
day, the British project industry 
won new business in 1976 valued 
at about £3bn of wbicb tbe UK 
content was estimated at around 

" It H a field in which inter¬ 
national competition is fierce 
and concerted effort is required 
to maintain or improve on the 
UK level of succe-s done 
throughout the world now and in 
the future,” the report said. 
There were considerable 

Manila threat to exports 


THE PHILIPPINES is consider¬ 
ing retaliatory action against 
Britain for taking a stand against 
the country's move to revise its 
garment trade agreement with 

the EEC. n Trade Ministry 
spokesman said today. 

Deputy Trade Minister, Mr. 
Yicentre Valdepenas has recom¬ 
mended the suspension of four 
multi-million dollar orders with 
British companies. 

The Philippines signed a 
S150m a year garment trade 
agreement with the EEC in 1977. 
In talks with the EEC . last 
month. Manila requested two 
revisions in the five-year agree¬ 
ment worth about 1m dollars 
more to the Philippines annually, 
the spokesman said. 

Although the other EEC 
member countries did not oppose 
the request Britain expressed 

The British action resulted in 
failure of the EEC to grant the 
Philippine request. 

The contracts threatened with 
a freeze or cancellation include 
a SlOm aircraft spare parts 
order from Philippine Airlines 
and’a sugar refinery project for 
the Cagayan Sugar Corporation 
estimated to be worth S20m. 

The other two contracts are 
for a dredging equipment order 
from the Philippine ports 
aulhoritly and an order for a 
power distribution grid by the 
national power corporation. 

advantages British industry 
enjoyed in its technology, 
technical skills, experienced 
management and its reputation 
for quality work. These were 
particularly important in the 
process engineering sector. 

UK construction companies 
also had technical skills whicb 
were superior to those of many 
foreign contractors, and the 
railway supply industry and 
power generation sectors were 
well qualified to succeed abroad. 

" The technology and expertise 
of the nationalised industries is 
available to help the export 
effort, through the consultancy- 
arms of the individual indus¬ 
tries. often working in con¬ 
junction with private sector 
companies.’’ it said. 

The best markets for overseas 
projects are still seen as the 
richer developing countries and 
although the pace of develop¬ 
ment in many has been slowing 
down there are expected to be 
continuing opportunities for all 
tbe main industrial sectors. 

The performance of British 
consultants overseas is regarded 
as highly satisfactory, with 
earnings increasing from £33m 
in 1969 to £350m last year, 
according to estimates. 

The Overseas Projects Board 
was set up by the British Over¬ 
seas Trade Board to be a focal 
point for industry and Govern¬ 
ment to consult on problems and 
matters of interest arising from 
project business. 

To the Holders of 


9%%. Bonds due 1982 
(due August 15,1982) 

NOTICE IS HEREBY GIVEN that, pursuant to the provisions of the Bonds of the above-described 
Issue, Morgan Guaranty Trust Company of New York, as fiscal Agent, has selected for redemption 
on August 15,1976 at 1009b of the principal amount thereof through operation of the Sinking Fund, 
51.6O0.0U0 principal amount of said Bonds bearing the following distinctive numbers: 

M-32 2825 5366 
81 2838 5370 
95 2094 5419 
224 2700 5421 
14B 2751 5483 
395 2799 5490 
215 2801 5520 
270 2837 5557 
284 2882 5973 
316 2889 5860 

327 2844 5670 

380 3000 3708 
385 3011 5735 
403 3043 5772 
444 3098 5829 
481 3114 9831 
478 3188 5845 
488 3184 5909 
508 3208 3934 
547 3293 5937 
584 3310 8019 
605 3314 6025 
623 3356 0085 
628 3387 6088 
683 3427 8108 
«B2 3476 6183 
730 3477 6205 
TBS 3485 8243 
777 3958 6277 
839 3562 6294 
851 3801 0310 
WOO 3033 0352 
918 3654 0407 
924 3861 8448 
950 3742 0517 
966 3767 0537 

984 3775 6568 

985 3825 0011 
3004 3839 6643 
3051 3R 61 B692 
1071 3887 8899 
1099 3424 0748 
1108 3946 6752 
1126 3958 8785 
3138 3905 8802 
1149 4011 0879 
1183 4(129 6896 
1Z25 4065 6954 
1=27 4106 8073 
1.103 4135 7006 
1305 4200 7009 
1336 4207 7020 
1410 4217 7082 
1448 4243 7069 

1519 4281 7096 

1520 4300 7138 
1525 4312 7150 
1581 4355 7181 
3816 4394 7195 
1618 4451 7198 
1687 4452 7230 

1713 4472 7281 

1714 4496 7303 
1785 4540 7333 
1706 4567 7384 
1820 4588 7305 
1859 4801 7380 
1883 4633 7384 
TJM 4679 7301 

16064 10792 21341 
16077 18825 21378 

S15S 10818 13288 It 
8158 10848 13327 15880 It 
8187 10701 13328 15901 It 
8190 10710 15343 15920 It 
8209 10722 13397 18977 If 
8240 1 0730 13408 15979 _ 

8271 10779 13434 18037 151 
8290 10793 13452 ' 

8312 10849 13467 

8352 10898 13539 18107 18834 21420 

8353 10927 13559 16117 18842 21449 
8439 10991 13583 18138 18880 21483 
8458 11008 13591 16172 18873 21484 
8523 1 1003 13000 18201 18912 214B5 
8585 11034 13613 16214 18938 21519 
8548 11086 13822 18237 16988 21530 
8572 11073 13833 18257 18971 21570 
8613 11081 13039 18283 19027 21598 
8617 HOST 13640 18280 19028 21878 
8624 11120 13887 16386 19063 21679 
8831 11142 13715 18373 19067 21687 
8856 11171 13719 18379 19117 21893 
8701 11186 13752 16380 19130 21697 
8708 11211 13757 16382 19139 21710 
8734 11290 13799 18437 19176 21738 
8788 11296 13812 16458 19208 21772 
8790 11306 13870 16486 19246 21798 
8002 11385 13890 18544 19205 21855 

8815 11398 13936 16590 19278 21677 

8816 11422 13937 10848 19303 21916 
8887 11440 13973 1BG57 19305 21962 
8016 11450 14002 18867 19329 219*1 
B021 11533 14012 18888 19405 22003 
8931 11542 14038 18755 19430 52003 
B063 11399 14070 16769 19468 22100 
9012 11812 14090 16776 19474 22117 
9088 11830 141=2 16791 19524 =2185 
9118 11650 14149 16843 19560 22192 
9142 11658 14184 16900 19827 22200 
9170 11605 14252 16903 19637 22=17 
9177 11673 14238 16951 19704 22272 
9223 11678 14273 18969 19713 22288 
9240 11728 14310 16992 19731 22298 
9281 11770 14319 17027 13740 22312 
9271 11773 14353 17058 19735 22387 
9277 11839 14389 17076 19764 22411 
9314 11871 14435 17082 19811 22412 

23375 £9188 27022 28708 30539 32702 35228 37919 
23388 25190 £7042 28711 30542 32741 35237 37923 
23420 25198 27081 28745 30551 32748 35239 37982 
2344B 25215 27092 28782 30581 32784 35244 38004 
23473 25234 27110 28771 30606 32782 35289 38008 
23481 25235 27112 2877B 80634 32828 35270 38007 
23802 25241 27138 28825 30837 33874 35299 38017 
33521 25362 27169 28834 30657 32880 35316 38041 
23544 35279 27199 28879 30692 32908 35319 38071 
23570 25305 27219 2H89B 30729 32968 35338 38084 
23579 25342 27254 28908 30741 33001 35348 38109 
23851 25343 27278 28924 30749 33051 35367 38119 

23657 25345 27285 28033 30772 33067 35454 38124 

23658 25368 27304 28990 30787 33144 35430 36219 
23860 25375 27328 28985 30788 33153 35523 38220 
23865 25398 27S7B 29009 30795 33207 35328 38251 
23688 25438 27377 29016 30873 33208 35535 38287 
23898 35484 27387 29038 30874 33236 35551 38320 
23722 25480 27414 29029 30876 ^39 35820 38325 
23730 25504 27420 29053 30884 33278 35854 38328 
23732 25517 27440 29073 30903 33291 35671 38347 
237B3 25543 27460 29082 30910 33323 35717 38380 
23756 25549 27485 29121 30914 33333 35747 38400 
23767 25551 27496 29163 30931 33378 35748 38466 
23770 25552 27304 29182 30951 33388 35753 38503 
23783 256=1 27535 29184 31015 33393 35833 38528 
23792 25638 27550 29187 31038 33409 35880 38552 
23812 25641 37573 29221 31093 334=9 33882 38567 
=3848 25648 27575 29231 31098 33503 35932 38613 
23864 23693 27826 2929= 31132 33517 35948 38614 
23675 25703 27840 29=96 31159 33563 35963 38624 
23903 25710 37645 29300 31182 33629 36020 36600 
23940 25731 27687 29318 31183 33858 36038 38733 
23943 25732 27739 29337 31186 33862 36087 33734 
33992 25741 27748 29330 31198 337=3 36100-38778 
=4020 =5758 27754 29838 31232 33740 36105 38779 
24049 =5801 =7758 29380 31238 3370= 36148 38818 
24061 25846 2776= 29384 31253 33807-36181 38877 
24076 25865 27823 Z9400 31309 33845 36234 38888 
24087 25888 27824 29429 31318 33871 36256 38947 
24109 25898 27831 =9430 31369 33B34 36287 38954 
24153 25913 27859 29474 31406 33936 36294 38368 
24164 25934 27880 29481 31419 33901 36374 30004 
24190 25955 27907 29492 31424 34041 38392 39041 
24232 25978 27908 29496 31475 34073 36409 39046 
24=37 26006 27934 29574 31483 34089 36475 39064 
24254 26018 27966 29578 31490 340B1 36B12 391=8 

9383 11B77 14450 17088 13847 22424 24=56 26099 27970 29582 31526 34138 36329 39134 

9390 11882 14480 17147 1984B 22451 
9407 11020 14524 17166 18882 22520 
94=6 11960 14534 17172 18867 225=8 
9445 1=010 14609 17224 18938 22539 
9470 12052 14G08 17265 19962 =2550 
9480 12089 14644 17325 19971 22598 
9405 12093 14685 17329 2000= 22030 
9514 12150 14713 17395 20031 2=631 
9527 12166 14746 17339 =0061 =2696 
9559 12237 14780 17368 201=6 2=704 
9611 12=87 14802 17377 =01=8 22709 

24277 26057 28020 29586 31561 34142 36563 39177 

24315 28067 28023 28588 31567 34148 38568 39232 

24330 26068 28027 Z9SB4 31602 34156 36644 39=54 

24343 26116 =8042 29613 31839 34163 36673 332(4) 

24368 =6119 28051 29622 31848 34204 36693 392S5 

24387 20122 28064 29654 31850 34209 36711 39330 

=4438 =6144 =8072 =9657 31655 34281 36713 39338 

=4443 26188 =809= =9672 31656 34308 36789 39365 

=4451 =6208 28119 29732 31860 34311 36800 39368 

24472 26=50 28137 =9733 31665 34329 38830 59374 

_ _ _ _ 24479 26283 28149 29738 31677 34384 36874 30444 

9853 1=314 14844 17438 2U1BH 22720 24499 20289 Z8158 29816 31710 34409 38870 39454 

9718 12327 14847 17464 20234 =2730 24505 26234 28167 29833 31741 34428 36861 39464 

8717 12393 14893 17470 20241 22745 24522 =0295 28203 29838 31747 34454 36958 39492 

8794 13431 1494B 17541 20244 22748 24523 26309 =8207 =9338 31769 34483 36963 3951= 

9807 12468 14949 17561 20289 2=774 =4575 26313 28243 =9894 31802 34487 36985 39538 

9854 1=499 14980 17078 20298 22788 24577 26337 2826= 29893 31811 34506 37006 39502 

9857 12511 15045 17634 20323 2=816 24618 =8396 28=69 29914 31851 34540 37042 39635 

9881 1=528 15060 17852 20328 22828 24632 26400 28288 29932 31904 34551 37044 39657 

9925 1=665 15094 17691 =0409 =837 =4059 =6434 28303 =9960 31906 34560 37117 39665 

9446 1=628 15121 17711 20413 =2841 =4679 26437 28328 30005 31928 34381 37139 39899 

1054 4881 7399 10023 12642 15145 17727 20430 22883 24680 26450 28331 30007 31945 34624 37155 39708 
3978 4700 7445 10028 12680 15172 17743 20451 22889 HIMO mhi 28363 3IHUJ SittK lit n <i«riae -m>n» 

24890 26531 28363 30044 31965 34637 37196 39762 
=005 4713 7454 10039 1=688 15204 17758 20472 22915 =4891 28541 =8375 30067 320=2 34684 37211 39780 

=081 4T45 ”482 10088 1=705 15218 17794 20484 22926 24696 26544 28380 30094 32033 34893 37=80 39797 

2085 4807 7499 10093 12723 13220 17848 20S29 22937 24704 26558 28394 30096 32058 34703 37281 393IT 

=088 4850 7521 10096 13761 15345 17867 20533 22936 34719 26368 26426 50105 32079 34738 37322 39823 

21=4 4655 75=5 10176 1=775 15261 17934 20550 23010 24740 28571 38429 30122 32080 34749 27388 29843 

=141 4865 76=0 1018], 12795 15301 17942 20571 =3019 3475= 28560 =8444 30184 32123 34772 37390 39887 

2145 4022 7625 10184 12804, 15313 17978 20582 23038 24773 26612 20465 30188 32134 34780 37391 39925 

=168 49=3 76=0 10197 1=921 15320 18008 20627 23048 =4808 28813 28466 30195 32151 34839 37438 39033 

2175 492G 7680 10=17 12S72 15349 18057 20645 23099 24826 26629 28470 30213 32154 34855 37458 39993 

=199 4934 7699 10=I8 1=878 1S366 18070 20687 23068 24981 26670 28474 30= 32158 348SS 37502 

=5* 4937 7710 10200 12896 1338B 18075. 20703 23092 =4876 =6675 28498 30244 3=197 3490= 87304 

=89 4953 7734 12918 25454 18157 20714 23109 24899 30633 =3515 30257 32214 34910 37851 

232= 4973 7786 l^V.ii 12958 15488 19176 20785 23140 24921 28712 28528 30=82 323B8 34952 37589 

2.120 5024 7826 1US38 12979 15307 18251 20767 23187 24930 26776 28557 302S3 32311 34991 37602 

2356 5082 7854 10356 13005 15550 18252 20777 23190 24966 =6768 28563 30268 32327 35024 37644 

2383 5071 7868 10359 13007 15556 18299 20811 23194 24982 26790 28591 30347 32386 35029 37653 

=384 0101.7896 10374 13110 18582 18307 30019 =3=30 25022 26840 28816 30309 33407 39110 37672 
2437 5142 7942 10385 13115 15858 18355 20672 23=82 25041 26841 =8021 30378 33426 35116 37759 

=454 5168 7949 10406 13176 15657 18361 20919 23277 25044 25881 =36=5 30382 33438 35119 37760 

=458 5172 7998 10418 13209 15659 18431 20920 23283 25061 =6904 =8832 30423 32491 35157 37777 

2488 5185 8023 10502 132=6 15685 18433 20988 23304 =5068 26928 28842 30426 32525 36101 37 790 

=516 5201 8034 10926 13242 19766 10448 21016 23308 23113 26969 2S649 30432 32590 35195 37810 

=544 3=62 8113 10536 13272 15789 18465 210IB 23314 =51=5 =7014 2S67S 304ES 32627 35198 37861 

2593 3260 6128 10557 13380 15804 18531 21094 23348 25140 27015 28697 30465 32884 35210 37894 

Toshiba to 
market flew 
system for 


By Robert Wood 

■TOKYO. July IS. 
TOSHIBA HAS announced what 
it says is the first commercial 
marketing of an electron-beam 
exposure system adequate for 
production of very large-scale 
integrations (VLSIs!, the core of 
future large-scale computers. 

VLSI* will be wafers about 
four inches square with at least 
64,000 “ hits "—the equivalent of 
transistors. They are expected to 
revolutionise the computer 
industry in the 1980s by per¬ 
mitting the construction of com¬ 
puters up ro 100 times more 
powerful than today's at no 
higher cost. But they rqeulre 
the drawing of lines only one 
micron (I-l.OOOth of a milli¬ 
metre) wide. The thinnest lines 
that can be drawn with conven¬ 
tional equipment, which uses 
light to draw lines, arc about 2» 
microns wide. The electron 
beam exposure system uses 
beams of electrons to draw lines, 
and can achieve the required 
one micron thickness, according 
to Toshiba. 

The new system is one of the 
first commercial fruits of Japan's 
heavily government • subsidised 
race to beat IBM in VLSI tech¬ 
nology. AN Japan’s major com¬ 
puter makers participate in the 
government-financed VLSI Tech¬ 
nology Research Association, 
each dispatching engineers to it 
and sharing its discoveries. 

Engineers working with the 
Association designed an experi¬ 
mental machine very similar to 
the one Toshiba is about to com¬ 
mercialise. and had Toshiba 
build it to their specifications. 
Its completion was announced in 
March. Toshiba's production will 
draw on experience in producing 
the experimental machine. 

IBM has a VLSI reseach pro¬ 
ject believed to be larger than 
Japan's but little of its progress 
is made public. 

Toshiba had been one of 
Japan’s four major computer 
manufacturers, but it largely 
withdrew from making large- 
scale computers early this year. 
The company remains aggres¬ 
sively involved in production 
of semiconductors and other 
computer-related devices, how¬ 

A Toshiba official said a num¬ 
ber of problems in VLSI manu-r 
Factoring technology remain. 
Thus the new electron-beam 
exposure system will be largely 
used for drawing the “masks”— 
bsaic patterns which function in 
semiconductor manufacturing 
much like photo negatives—-for 
production of ordinary large- 
scale integrations. Its main 
advantage in this is sneed. It 
can draw the pattern for a four 
kilobit memory in only seven 
minutes. while ordinary 
machines using light to draw 
lines require about two hours, a 
company official said. 

Tbe machine will cost about 
Y400m (S2m). Toshiba esti¬ 
mates global demand for similar 
equipment will be about 100 
units, and Toshiba will capture 
a share of about 30 per cent. 

Swedish experiment cuts 

papermaking energy costs 



SWEDEN'S PULP and paper 
mills could reduce their energy 
consumption substantially, in 
some cases to almost half the 
present level, by making use of 
the latest techniques available. 
This has been demonstrated in 
model tests carried out for the 
Swedish Pulp and Paper Mills’ 
Association by the Boilermakers 

The mills consume more 
energy than any other Swedish 
industry and their high energy 
costs are an important pricing 
factor. The results of the three- 
year trials are. therefore, signifi¬ 
cant both for the mills' competi¬ 
tiveness on foreign markets and 
Sweden's future energy pro¬ 
gramme. They could also interest 
foreign pulp and paper manu¬ 

The tests have covered six 
types of manufacturing; includ¬ 
ing a bleached sulphate pulp 
mill producing for export, an 
integrated krafUiner mill, a 
newsprint plant and a non- 
integrated fine paper factory. 
The total energy consumption 
per tonne of product could be 

reduced in ail] instances. Oil con¬ 
sumption couJd be cut by half 
through increased and more 
effective burning of bark and 
improved residue recovery. . 

A market pulp mill could be 
designed so as to be practically 
self-sufficient as regards heat. 
Electricitv consumption could 
also be reduced but to a smaller 
degree. Paper mills' _ electricity 
needs cannot be cut significantly 
but market pulp and kraftilner 
mills could be designed to 
obtain tbe larger part of their 
electricity requirements from 
their own back pressure plants, 

However, Mr. Goeran 
Wohifahrt, director of the Mills 
Association, points .out that the 
encouraging results obtained 
from models cannot be applied 
without reservations to existing 
plants built at times when quite 
different circumstances prevailed 
regarding the supply ana cost of 
energy, capital and other input 
factors. Moreover, at their pre¬ 
sent law profitability levels the 
mills could look only at invest¬ 
ments which would give a 
quicker return on capital 

When new plants are built or 
new units, such as- a thermo¬ 
mechanical pulp plant, a new 
evaporation units or a new paper 
machine, are added to existing 
mills, the latest techniques could 
be successfully applied. For 
existing plants the financial con¬ 
ditions would have to be assessed 
individnaly, as In most cases it 
would be expensive to change an 
old factory. 

State financial support for 
energy saving measures could 
induce companies to invest in 
some of the new procesess indi¬ 
cated in the model tests. Mr. 
Wohifahrt commented. But a 
reduction in energy consumption 
per tonne of product did not 
imply any decrease in the indus*. 
try's total energy needs. 

The planned expansion in 
paper output and the move. to¬ 
wards pulp with a higher wood 
content would leave total fuel 
requirements more or less un¬ 
changed in the 1980s. Oil con¬ 
sumption would fall, but the 
need for external electricity 
would rise substantially. 

in Greece 
face tight 

^ / 

r e-G 

By Our Own Correspondent 
.. ATHENS. July 18. 
BANKS HAVE been ordered not 
to allocate foreign exchange to 
Greek importers as advance pay¬ 
ments against import documents, 
a move seen here as an effort by 
the government to curb imports 
which have soared in recent 

Mr. George Fanayotopoulos, 
the Minister of Commerce, who 
issued the order, said the 
measure was meant to normalise 
import procedures. He said some 
importers took as long as six¬ 
mo nths. to bring In the goods for 
which they received a* foreign 
exchange advance. The Associa¬ 
tion of Commercial Representa¬ 
tives and the Athens Traders' 
Association claim the measure 
imposes serious administrative 
obstacles on imports and 
weakens the bargaining position 
of Greek importers. 

Tbe measure .is seen as a 
means to make import pro¬ 
cedures more difficult in an 
indirect effort to curb imports 
whicb rose by 10 per cent to 
$ 2 .92m in the first five months 
of this year, 1 .. 


Caribbean call for industrial aid 


Community will be told when 
preliminary discussions for an 
extension to the present Lome 
Convention open in Brussels at 
Ministerial level on July 24 that 
its partners in the African/ 
Caribbean/Paciflc (ACP) group 
want provisions in any new pact 
that will facilitate a rather more 
rapid growth of the industrial¬ 
isation process in ACP countries 
than has been the case under 
Lome 1. 

Certainly, the five independent 
Caricom members belonging to 

Algeria sells 
gas to Europe 

the Lome Convention (Trinidad 
and Tobago, Jamaica, Barbados, 
Guyana and Grenada) and the 
seven non-independent regional 
territories (St. Lucia, SL Vincent, 
Dominica, Belize, Antigua. SL 
Kitts-Nevis, Montserrat) will be 
pressing this view in the negoti¬ 
ations ahead. 

This became clear during the 
week-long regional seminar for 
the Caribbean on the Lome Con¬ 
vention, hosted by the Trinidad 
and Tobago Government, which 
was held recently in Port of 

It was pointed out to the EEC 
delegation led by Mr. Maurice 
Foley, deputy director-general of 
the development division, that a 
number of Caricom states had 
made strenuous attempts to 
diversify their economies away 
from dependence on one or more 
agricultural commodities towards 
the production of manufactured 
goods of one kind or another and 
the EEC was expected to provide 
positive assistance for this effort 

As one Trinidad and Tobago 
Government spokesman put it: 

“ We in Caricom want to see 
tbe principle of industrial co¬ 
operation entrenched much more 
firmly in a new Lome Convention 
than was the case in Lome 1.” 

Representatives from both the 
regional public and private 
sectors stressed during the 
seminar that far from aiding the 
movement towards industrial 
diversification in the Caribbean, 
African and Pacific states. Lome 
1 in many respects actually 
retarded it. 

A number of examples were 
quoted during the discussions 
but the one referred to with 
greatest indignation was the 
EEC definition system which 
effectively kept the lighter 
Caricom run (which manu¬ 
facturers claim is the best of its 
kind in the world) out of the 
two largest EEC markets, 
Germany and France. 

Rum is a genuine, 100 per cent 
local Caricom product but 
customs classification in 
Germany in particular does not 
accept rum from this part of the 
world as “rum" because it fail* 
to satisfy arbitrary congeneric 
levels Imposed by the authori¬ 
ties. I 

Mr. George Chamber 
Trinidad and Tobago’s Minister 
of Industry and Commerce, who 
opened the' seminar, noted 
bitterly: “It is ironic in the 
extreme that the world's oldest 
producers of rum (the Caribbean 
states) are now being advised 
that they do not know what rum 
is. Yet this is what Europe, 
under the guise of Lome, has 
sought to do.” 

Rum apart, Trinidad and 
Tobago is perhaps most keen of 

all Caricom member territories 
to sue industrial co-operation 
actively pursued in the aext con¬ 
vention between the EEC and 
ACP states. 

This is because the country 
has embarked on h multibillion 
dollar industrial development 
programme that will see. If all 
goes well, the establishment by 
1984 of an iron and steel mill, at 
least two liquid ammonia plants, 
an aluminium smelter, a lique¬ 
fied natural gas.(LNG) plant, a 
methanol plant, a polyester fibre 
plant, a furfural plant and a 
number of petrochemical plants, 
not to mention several spin-off 
and downstream industries 
associated with the foregoing. 

Taking the two ammonia plants 
alone (one of which, the Trinidad 
Nitrogen Company—TRlNGEN 
—is already on stream). Trini¬ 
dad and Tabogo will have a pro¬ 
duction capacity in liquid 
fertiliser of lm metric tonnes by 
the early 1980s. virtually all of 
which would need to be marketed 

“The nature of the industriali¬ 
sation of which we are capable 
and to which we aspire, is mani¬ 
festly more profound than 
earlier," Mr. Chambers explained 
to the EEC representatives. 

As if tariff,definition and 
other, barriers, against manufac¬ 
tured goods Which persisted 
during Lome 1 were not bad 
enough, the Caricom terri¬ 
tories. and no doubt others in the 
ACP group, have found the work¬ 
ings of the Centre for Industrial 
Development in Brussels not to 
be altogether satisfactory. 

The centre was specifically 
established under article 36 of 

By Our Own Correspondent 
SONATRACH. the Algerian State 
energy company, hopes to sell 
additional quantities of liquefied 
natural gus (LNG) to Western 
Europe now that a planned deal 
with the U.S. has apparently 
fallen through, tbe national 
Dutch gas distribution company. 
Gasunie, said in Assen today. 
According to the company. 
Algeria is looking to export 20bn 
cubic metres of LNG annually 
for around 20 years. 

A spokesman said that it was 
understood that the U.S. authori¬ 
ties had nol approved the import 
transaction, but he did not know 
on what grounds. He said 
Holland was now negotiating 
with Sonatrach, along with gas 
distribution companies in 
Austria, Germany, France and 
Italy. Gasunie, in which the 
Dutch State has a 50 per cent 
stake with Shell and Esso each 
holding 25 per cent, of the 
shares, said it was negotiating to 
buy 1 or 2bn cubic metres of 
Algerian LNG per annum 

The Dutch gas distributor has 
already contracted to purchase 
annually 4bn cubic metres for 
■JO years from 19S4-85 from 
Sonatrach- But. as part of its 
and the Dutch Government's 
policy of conserving the large 
Groningen gas deposits as much 
as possible, it was having 

further talks with gas suppliers 
in countries ranging from 
Norway (which is already supply¬ 
ing gas to Holland) ».n the Soviet 
Union and Middle Eastern 


On August 15.1978, the Bonds designated ahnvr will income due and payable at the principal amoimt 
thereof in such coin or currency of the United StaLw of America « is tegal tender for the payment 
iherein of public and private debts, and will be paid upon surrender thereof at the corporate trust 
office of Morgan Guaranty Trust Company of New York, 15 Broad Street, New York, New 
York 10015, or, at the option of the Wrer but subject to any laws and regulations applicable 
thereto, at the main offices of Morgan. Guaranty Trust Company of New York in Brussels, Frankfurt, 
l,ondan or Pant, or Bank Mecs & Hope MV in Amsterdam or Credit Industrie! d' Alsace ct de Lorraine 
in Luxembourg. 

Bonds surrendered for redrmoiiou ehouid have attached all unmatured coupons appurtenant thereto. 
Coupon a due August 15, 1978 should be detached and collected in the usual manner. 

From jnd after August 15,1978 interest shall cca*e to accrue on Lhe Bonds herein designated for 


July 12,1978 


The following Bonds previously railed for redemption have not as yet been presented for payment: 

31-1010 27« 3533 4193 5407 5933 6IJ4 7543 10774 11304 'i«<; 14 e., 

IWjg =■=* 4018 4957 0883 M36 8399 fflSl 10198 lmS £uOS t Stigi 38866 

=S» 4018 5394 59=5 6063 7140 9987 1090= j'lM HiSo 3§7« 2fl763 38305 39W3 

French yarn attacked 

The U.S. Treasury says nylon 
yam from France is being sold 
to tbe U.S. at less than fair value, 
reports AP-DJ from Washington. 

The Treasury says it is with¬ 
holding appraisement on imports 
of this product from France for 
three months, and the case is 
being referred to the U.S. Inter¬ 
national Trade Commission. 
^Imports of nylon yam from 
France were valued at about 
S2.9m during calendar 1977. 

GKN in Iraq contract 

GKN Contractors, in a joint 
venture with Ross Poultry, has 
won a contract from the Republic 
oi Iraq worth £21.5ni for the 
design, supply, construction and 
commissioning of three poultry 
slaughterhouses for the Ministry 
nf Agriculure and • Agrarian 

The slaughterhouses will be 
among the largest and most 
modern in the Middle East. GKN 
Contractors will act as main con¬ 
tractor and Ross Poultry, through 
imperial Foods International 
Technical Services, will provide 
the process expertise. 


British Airports show 

a healthy profit 

British Airports Authority Annual Reportl977/78 

1977.78 - 
£ million 

£ million 

Net assets 



Total Income 



Pre-Tax Profit 

. 24.3 


Capital Expenditure 



Foreign Currency Earnings 



British Airports were formed as a national service 
enterprise in 1966. 

Since then, we have been consistently profitable. 

Tins year is no exception. 

Despite only a small increase in traffic, due to 
industrial action within the industry, we again lifted 
our pre-tax profit. 

We are completely self-financing. And we 
plan to invest £240 million over the next 5 years on 
airport improvements. 

Through Heathrow and Gatwick, London offers 
more International flights than any other European 
capital,helping to maintainits position as one of 
the world’s leading tourist and business centres. 

* - British , 


Heathrow* Gatwick* Stansted ■ Glasgow* Edinburgh* Prestwick* Aberdeen 



; S > 

the Lome Convention signed on 
February 28, 1975. but did not 
come into existence until the 
beginning of last year. 

Its work so far was the subject 
of some dose scrutiny by partici¬ 
pants at the Port of Spain 
seminar, particularly those from 
the private sector. 

-They wanted to know, for 
example, why out of over 1,000 
inquiries from AGP states for 
possible assistance in industrial 
matters, only 196 have been 
given serious consideration 3Dd 
only 40 so far completed. It was 
suggested that the centre might 
be too bureaucratic in its 
approach and a quicker response- 
system needed to be adopted. 

Dr. Roger Tbelsen, the centre's 
director,' who was in Port oF 
Spain for the discussions, bravely 
defended his agency and pointed 
out that the centre did not itself 
have access to funds and could 
not invest in industry directly. 
Money would have to come from 
the European Development Fund 
or the European Investment 
Bank but tbe centre couJd act as 
a “marriage broker" and put 
investors on both sides in touch 
with each other. 

So far, only about seven pro¬ 
jects have been identified which 
could-provide opportunities for 
posable industrial co-operation 
between Caricom and EEC 
Investors. Because of Its more 
extensive natural resource base 
and its superior economic pros¬ 
pects, however, a number of 
possibilities in. Trinidad and 
Tobago are likely to be engaging 
the centre’s attention in the 





v .. 







Times Wednesday July 19 1978’ 

home news 

\ State airports 
1 £24m pre-tax 


XihS Airp l 0,ls Autho- other more immediately related 
f.f *thi» 7, w*> ns an ^ runs seven aviation activities, an income of 
Vnrt.3lne MiLk!? 010 a i rp ° rts - f61Sra was offset by spending 
u.rt throw and Gat- of £66m on new facilities, inelnd- 

3 pre-t3X profit of ing terminals, resulting in a loss 
Cf4.3ra in the year to March 31. of £*L2m. ■ ■ 

2 3 [«r Vl l^ i!7.6m in the pre- The results were achieved 
^i 0U r?nr C ,iL r ^, a r,se niore than against a background of indus- 
'Y, Le " L trial disputes at Heathrow and 

-ver psont after lax amounted elsewhere last year, which 
* H ,5, a S a| nst £1.9m, a rise resulted in a rise of only 1.9 
of 1K4.2 per cent. The figures per cent in the volume of 
arc calculated on the historic passenger traffic through the 
com account ing basis. On a cur- authority’s airports, 
rent cost accounting basis, how- Presenting the report yester- 
cver, the pre-tax profit would day, Mr. Norman Payne, 
nave been £7.3m, and the net chairman of the authority, made 
rC TH.* a loss clear that the authority is eon- 

The authority’s annual report, ccmed about the possible lack 
issued yesterday, shows that of adequate facilities in the raid 
profit^ was earned primarily on to late 1980s, if traffic growth 
the * commercial " side of its continues at present rates, 
business: the sale of concessions Even with a fourth passenger 
for shops and ear parks, and terminal at Heatbrow, increasing 
sales of duty-free goods. These its capacity from 30m passengers 
er earned profits of a year to 38m, further expan- 
UiEim. sion 0 f tijg South-East airports 

-j l, i ? n ,. “operational” system would be needed, 
side, including landing fees and “The Govemmenfs White 

Airline seeks to cut 
fares by up to 40% 


member of the British and Com¬ 
monwealth Shipping Group, has 
asked the Civil Aviation 
Authority for permission to cut 
fares on its UK internal routes 
from October 1 by up to 40 per 

Mr. Peter Villa, managing 
director, said yesterday that for 
years passengers had put up with 
fares rises. “This is a genuine 
effort no our part to reduce fares 
and. let’s be honest, to fill the 
empty seats.” 

The cuts, subject to approval, 
rover three main types of fare— 
the Discount 40 fare, senior citi¬ 
zens’ fare, and family fares. 

With Discount 40. passengers 
booking three days or less before 
dare of outward travel will have 
a 40 per cent cut on the normal 
round-trip rate. Similar discounts 
will apply for those of pension¬ 
able age. 

For family fares, one rhild (of 
over Ihrcc and under 12 years) 
per parent or guardian will travel 

free when the adult is paying 
the full normal fare. 

The effect will be that on 
Gatwick-Channel Isles routes, 
between November and March 
the normal return fare of £46.20 
will be cut to £27.80. Between 
Blackpool and the Isle of Man it 
will be cut from £29.80 to £17.90 

For families of two adults and 
two children, the normal collec¬ 
tive return fare of £138.80 
between November and Marcb 
will be cut to £92.40, and on the 
Blackpool-Jsle of Man route from i 
£89.60 to £59.60. ! 

• Jetsave. the low-cost trans¬ 
atlantic travel company, said it 
is well on target to sell its entire 
200.000 advanced booking charter 
seats to the U.S., the Caribbean 
and Canada this year. 

More than 82 per cent of the, 
company’s planned capacity has 
been sold. Biggest demand has 
been on Rights to the U.S, where 
the introduction of “Latesave” 
fares from as low at £95 return 
has been a contributory factor. 



Paper (on airport development) 
identified a second terminal at 
Gatwick (to increase that air¬ 
port’s capacity from 16m to 25m 
passengers a year) as the next 
stage of development,” he said. 

“If traffic demand is to he 
met. however, another major 
development wilt have to proceed 
almost simultaneously with 
’Gatwick’s second terminal.*’ 

The Government has agreed 
to the establishment of a new 
Airports Policy Advisory Coun¬ 
cil. on which all concerned with, 
or affected by. airports develop¬ 
ment will be represented. 

The council is being formed 
and will meet in September. 

The report says capital develop¬ 
ment programmes for the next 
five years will involve spending 
£243m (at March, 1978. prices), 
mostly in the South-east. 

The figure includes £33m for 
the start of work on the fourth 
passenger terminal at Heathrow, 
provided . the Government 
approves that development when 
the current public planning 
inquiry is completed. 

At Gatwick, continued spend¬ 
ing includes £20.4m for the new 
Northern pier and £9.2m for 
further developments to the 
passenger terminaL 
Limited development at Stan- 
sLed is also planned, costing £10m. 
but Mr. Payne emphasised that 
that did not yet involve expan¬ 
sion of the airport to take 4m 
passengers a year. 

I ' jai 771 JhI~7B 

7-8*.. 17-6.5 


! if I 

v ■ ; YORKSHIRE & 

Ck Humberside! 

Jal 771 Jal tbT 

■ R.c- I 

Victims of violence 
‘need more cash’ 


VICTIMS OF violent crime need 
more compen^ati'in in terms of 
cash and sympathy to help (hem 
ovm-unu; their suffering, accord¬ 
ing in an interim report by a 
oiiuniitlCL' headed by Lord Long¬ 

Lord Longford said yesterday hi: >.iw no discrepancy 
between his fight to free Myra 
lhndlcy. one of the Moors 
murderers, and his battle for 
greater compensation for victims 
of crime. " I supported both 
sides in the Spanish Civil War.” 

Thu veport recommends that 
a “Minister for Victims” be 
appointed and that a commission, 
similar lo the Commission Tor 
Raiiai Equality, created to repre¬ 
sent victims. 

Air and ship industries 
receive further £5.9m 


A FURTHER £5.9m cotitpensa- 
:u>n for the nationalisation of 
i hi- aircraft and shipbuilding 
Industrie? was announced yester- 
,l.iv hy Mr. neraid Kaufman, 
Minister f'»r Industry. 

It brines total payments on 
arrount lo dale for the State 
lake-over of lbe two industries to 

Drscussjons are now in pro¬ 
gress between tbo Government 
ami the original owners of the 
nationalised companies, to deter¬ 
mine the eventual sums to be 

Motorcycle sales rise slightly 


1M\ MOTORCYCLE sales moved 
,,,, -iU^htly in the first six 
months t>r this year, despite a 
tail in sutnl two-wheeler 
i«-.-istration< because of a 
ik-L-lino m the moped market. - 
\ci-i»rdms to figures from the 
tuMiiufc or Motorcycling yester- 
t l- 4 v ijk-s of motorcycles of 
i„«’hv than 50cc rose by about 

1 per cent to 85.822 units com¬ 
pared with S4.S3S. 

Moped sales, on the other 
hand, foil by 46 per cent from 
3U.2S8 10 19.481. 

Problems in the moped market 
have been caused by the new 
law of August 1977 restricting 
speeds to 30 mpb.- Nevertheless, 
there arc signs of recovery in 
this sector. 

home contracts 

£5.5m PO order for Pye 

►YE TMC has received a Post 
Mice order for standard rotary 
lull telephones worth some &».om. 

I he order is for both desk and 
mil tvpes. The telephones will 
w made at the Airdrie factory, 
iud deliveries will begin, m 

a-plonibcr. ^ 

•IIORN BENILVU. part of Thom 
;iei-iri«:il industries. has 
t-cciwd contracts worth lira for 
ir-fondilioning- plumbing and 
'iiH-meal installations. One *s for 
5,» re in'* Bank International’s new 
mice block and dlmne faeibUes In 
(nicechurch Strept, London, EC I, 
mother for the 
•armerdiips now deparUmrat 
tore at Milton Keynes; 4tnd the 

third for the first stage of I-M-C-O. 
Building on the Albert Embank¬ 
ment for the P.SA. 


The British Steel Corporation has 
placed a contract through the 
crane and mlning dlvision of 

EQUIPMENT, for the supply of a 
Marion Dresser 7500 
Dragline, valued at I2jm. Due for 
commissioning in 
machine, partly built in the UK, 
is to be used far stripping 0P®rs- 
tions at the Yarborough Ironstone 
quarry near the K^Scirathoroe 
Works. The draglines weight m 
working condition is nearly soo 
tons; the boom is 310 ft long and 
bucket capacity is IS- cu ya- 

THE NUMBER of adults out of work rose In all regions in the 
month to mid-July when seasonal factors are taken into account, 
except in Yorkshire and Humberside, where there was no 
change, and in Scotland, where the number of unemployed 
fell by 400. 

Over the last 12 months the absolute number out of work 
has fallen most in the South East, while the largest rises 
have been seen in Northern Ireland and Wales. 

Since last July the absolute number of unemployed has 
fallen 9 per cent in the South East and 4.5 per cent In the 
West Midlands. 

Other areas in which there was an improvement were the 
South West, where the number fell by L2 per cent and East 
Anglia, by 0.9 per cent. 

Areas in which the number of unemployed has Increased 
in the last'12 months are: Northern Ireland, up 8.1 per cent; 
Wales, up 6.8 per cent; the North, 4.6 per cent; Yorkshire and 
Humberside. 2 per cent; the East Midlands. LI per cent: 
Scotland, 0,9 per cent; and the North West. 0.5 per cent. 

Plan for 
on tax 

By David Freud 

day launched a uniform way of 
releasing details of changes in 
its administrative practice. 

Up to now changes have been 
spelled out through a variety of 
means—including Press notices. 
Parliamentary written answers, 
letters to accountancy bodies and 
information released by other 

In future the Inland Revenue 
will issue all information in the 
form of a Statement oF Practice. 
These statements will be widely 
distributed and will be available 
on file in the public inquiry room 
of Somerset House, the London 

I The statements have been in¬ 
troduced because in the past it 
has been difficult for accountants, 
among other concerned indivi¬ 
duals, to keep trace of changes. 

Yesterday the Consul ative 
Committee of Accountancy 
Bodies said it welcomed .the 
development. “It is obviously 
more convenient to have these 
things under one roof and it is 
a change which we have been 
requesting for some months," 
it said. 

The new series is designed 
to be comprehensive and. there¬ 
fore. will include statements 
which may originally have: 
appeared elsewhere. I 

Buy British paper, 
Government urged 


A CALL TO the Government to 
support the British paper indus¬ 
try by using British rather than 
imported paper came yesterday 
from Mr. Michael King-Sin ith, 
chairman of the National 
Association of Paper Merchants. 

Figures from the industry 
show UK production of all 
grades of paper and hoard down 
on last year, in some cases by 
more than JO per cent. 

Mr. King-Smith said that 
employment in the industry, 
which has an annual turnover 
of more than £l.lbn. bad been 
reduced to 63,000 from 80.000 
10 years ago. while imported 
paper and board accounted for 
47 per cent of consumption. 

The Government should ensure 
that all its offices, the nation¬ 

alised industries, local govern¬ 
ment and the police and fire 
services bought British paper. 

“These consumers are not 
competing in the world markets 
when they print and convert 
their product, therefore price is 
not their prime consideration. 

“The Prime Minister has 
urged managers of British 
industry and commerce to buy 
British; here is a classic case of 
setting an example by action and 
not words." 

Monthly figures from the 
British Paper and Board Indus¬ 
try Federation show that board 
production is down 9.5 per cent 
in the first five months of 1978 
over the same period last year 
and paper production is down 
2.7 per cent. 

‘Share road costs’ plan 


urged lo examine the possibility 
of sharing expensive road main¬ 
tenance equipment to curb the 
effects of reduced highway 
expenditure in a report pub¬ 
lished today by the Association 
of Metropolitan Authorities. 

A working party set up lo 
examine the effects of spending 
cuts on road maintenance con¬ 
cludes that there is no substitute 
for an increase in real expendi¬ 
ture to overcome the problems 
of deteriorating surfaces and 
crumbling foundations. 

However a package of eight 
proposals is put forward for con¬ 
sideration by local authorities to 

improve road maintenance effi¬ 
ciency without raising expendi¬ 

Among these are that parti¬ 
cular emphasis should be given 
to management control, and 
performance reviews, over main¬ 
tenance programmes. 

The working party calls on 
the Government to examine the 
effects on road structures of the 
increasing number of heavy 
lorries wtih axle weights over 
10 tons. 

High traps; A icorking party 
report ore maintenance srure- 
dards and techniques published 
bp the Association of Metropoli¬ 
tan Authorities. 


Mining companies' reports — Quarter ended 30 June 1978 

Ail companies mentioned are incorporated in the Republic of South Africa. 

All financial figures for the quarter and progressive figures for the current year 
are unaudited. 

Rate of exchange on 30 June 1978 R1.00 = £0,62. £1,00 = R1,63 
Development results given are the actual sampling results. No allowance has been 
made for adjustments necessary in the valuation of the corresponding ore reserves. 
Shareholders requiring copies of these reports regularly each quarter, should write 
to the Secretaries. Anglo Transvaal Trustees Limited. 295 Regent Street. London 

Prieska Copper Mines 
(Proprietary) Ltd. 

Issued capital 54 000 000 sham of 50 cents each 

Operating results 
Ore milled . . . . 

Concentrates produced ‘ 



Concentrates despatched 



Financial results 
Operating profit . . 
Non-mining Income 

Interest paid and stores adjustment 

"Tbe- immediate plight of 
victims is too urgent" to be left 
while the problems of the penal 
pulley are sorted out.” it says. 
Therapeutic centres should be 
set up to help victims of violent 
crimes and substantial compen¬ 
sation should be paid for “ shock, 
shame, pain and distress" 

People permanently injured 
through armed robbery, kid¬ 
napping, attempted murder and 
attempted assassination should 
be entitled to compensation com¬ 
parable -to civil damages, the 
report says. 

Worfefreg Party on Victims. 
interim report. Earl of Longford, 
House of Lords. Westminster. 
London. SW1 (£150). 

Nerprafh . . . 

Loan repayments 

30 June 
758 000 

31 March 
761 000 

30 June 
3062 000 

127 701 
139 693 

128 269 

Gold Mining Co. Ltd. 

Issued capital 11 200 000 shares of R1 each 
Planned operations for year ending 30 June 1979 
On milled; 2 900 000 r 
Yield : 10,7 g/t 

Operating results 

Oremitod .......... t 

Gold recovered ....... .kg 

Yield .g/t 

Revenue — see note . . .R/i milled 

Cosu 3..R/l milled 

Profit .*■.. . ,R/i milled 


Costs '. R000 

Profit. ROOD 

Consolidated Murchison Ltd. — continued 

Capital expenditure. 
Dividend . . . . , 

Uranium oxide 
Pulp treated . . ... 
Oxide produced . . . , 

. . . . t 


• . . kg/t 

Development / 

Advanced.m 6 243 5 481 26163 


Despatches, which vary from quartet to quarter, are brought to account at their 
estimated receivable value. Operating profit takes into account adjustments following 
final price determinations on despatches made during previous quarters. 


No taxation was payable as the Company has an assessed loss. 

'Capital expenditure 

Outstanding commitments at 30 June 1978 are estimated at R364 000 (31 March 
1978:8342 000). 

Eastern Transvaal, 
Consolidated Mines, Ltd. 

Issued capital 4 31B B78 shares o! 50 cents each 
Planned operations for year ending 30 June 1979 

Ora milled: 366 000 1 
Yield : 6,0 g/t 

Financial results 

Working proln — gold mining. . . . 
Profit from sales ol uranium oxide and 

pyme . . ■ . 

Non-mining income. 

Interest paid and employee service 

Profit before taxation and State's share 

of profit.. 

Taxation and Slate's share of profit. . 

Profit aftor taxation and State's share ot 

Capital expenditure 
Loan received . . . 

paid in compensation, which in 
the original owners' view should 
run to several hundred million 

The payments now made are in 
respect of the unquoted securi¬ 
ties in the following companies: 
British Aircraft Corporation 
(Holdings). £3.550,000; Scottish 
Aviation. £150.000; Austin and 
Pickersgiil, £300.000; Brooke 
Marine, £50,000; Caramell Laird 
Shipbuilders £100,000; Hall 
Russell and Co., £100,000; Vickers 
Shipbuilding Group, £1.25m; and 
George Clark and NEM £400,000. 







30 June 

31 March 

Operating results 





Ore milled ....... 

. . . t 

84 500 

84 700 

339 200 

Gold recovered. 

. . .kg 


* 518,12 

2 118.40 


■ . g/‘ 




Revenue—see note . . . 

R/t milled 




Costs .. 

R/t milled 





R/t milted 






3 482 

2 626 

10 753 



1 659 

1 507 

6 105 



1 S23 

1 119 


Financial results 




Working profit — gold mining .... 

1 823 

1 119 


Non-mining income . . . 





2 017 

1 199 

5 021 

Prospecting expenditure and 
grassing ot mine dumps . . 





Profit before taxation . . . 

1 775 

1 162 

4 655 






Profit after taxation . . . . 

1 652 

603 ' 

3 030 

Capital expenditure . . . . 



1 202 


. . . . 

1 079 


1 511 

Transfer to general reserve to fund State 1 
loan levies (1978 portion R22B 000) . 






3 040 



. . . m 

1 222 

1 260 * 

5 248 

Sampling results; 

Sampled.. . . 

. . , m 




Channel width. 

. . cm 




Channel value. 

. . g A 




. cm. g/t 

4 676 

1 549 

3 586 

Ora reserves 








30 June 

31 March 

30 June 




733 000 

673 000 

2 928 000 


7 729,83 

32 62537 













47 552 


160 446 

23 477 

23 639 


24 075 

13 731 

68 314 

735 000 

693 000 

2 945 000 

89 904 


364 989 







24 075 

13 731 

B8 314 

3 555 

5 249 

10 959 

2 870 

1 007 

4 997 

30 500 

19 987 

84 270 




30 IBB 

19 861 

S3 765 

IB 382 


40 723 

13 806 

' 11 796 

43 042 


4 070 

14 731 


11 000 

11 600 

4 664 

(7 530) 

3 131 




IS 600 



7 907 


7 907 

32 243 

(7 460) 

39 316 

11 622 

10 258 

44 893 

2 534 

1 946 








1 745 

1 772 

1 715 







Slats loan levy. 



6 months 




30 June 

31 March 

30 June 
















Tha revenue from the sale of antimony concentrates brought into account each quarter 
is based on actual shipments made, which can vary considerably from quarter to quarter. 


No interim dividend ho* been declared as the Company's results for the half-year have 
been adversely affected by substantially reduced sales ot antimony concentrates, 
aggravated by delayed shipments due to the temporary closure of the Antimony 
Products oxide plant. 

Capital expenditure 

Capital expenditure for tha year ending 31 December 1978 is estimated at R1 000 000. 

Outstanding commitments ar 30 June 1978 are estimated at R1 000 (31 March 
1978: R3 OOO)- 

Loraine Gold Mines, Ltd. 

Issued capital 16 368 886 shares of R1 each 

Planned operations for year ending 30 September 1878 

Ore milled: 1 300 0001 

Yield : 5,8 g/t (previously 6,0 g/_t) 

Loan repayments.. 


Transfer to general reserve to fund State 
loan levies (197B portion R4 346 000). 


Advanced.m 11 622 10 258 44 893 

Sampling results on Vaal reef: 

Sampled... 2 534 1 946 8 466 

Channel 54 44 50 

Channel value —gold .... g/t 32,3 40,6 34.0 

.cm.g/l 1 745 1 772 1 715 

— uranium oxide . Lg/i 0.55 0,60 0.54 29,81 26,33 27.35 

Ore reserve 

The total ore reserve at 30 June 1078 was estimated as follows; 

Tannage ... 11 444 000 

Sloping width . ....... cm 112 

Value —gold.• g/t 13.3 

■ 1 437 

— uranium oxide .... kg/t 0.23 

.cm. kg/t 26,09 

The above ore reserve was computed on a Joint gold-uranium pay limit based on an 
e&tifnared gdd revenue of R5 312 per kilogram (equivalent to about U.S. 5190 per 
ounce) and on the estimated realisable value of uranium oxide. 


Final dividend No. 45 of 175 cents per share was declared in June 1978, making a total 
of 260 cents per share for the financial year. 

Capital expenditure 

Capital expenifiture for the year ending 30 June 1979 is estimated si R16 OOO OOO. 
Outstanding commibnenie ax 30 June 1978 are estimated at R3 096 000 (31 March 
1978: R5 579 000). 

Shaft Sinking 

No. 8 Shah was commissioned during iho quarter and development operations have 

commenced- ■ 


Production was adversely affected to the extent of some 23 000 tons by two under¬ 
ground fnes end a hoisting accident in No. 5 Shaft during the quarter. Claims have bean 
lodged w*h me Company's Insurers. 

Operating results 

Ore milled .V .... t 



Revenue — see note . . .R/t milled 

Cost*.R/i milled 

Loss.R/t milled 




Financial results 

Working lose — gold mining .... 

Slate assistance. 

Profit Iram sales of uranium oxide and 


Non-mining income ....... 

30 June 

1 739,50 
10 277 
10 503 

31 March 

309 000 
1 804.70 
9 016 
10 430 
1 414 

9 months 
30 June 

941 000 
5 485.62 

29 327 

30 661 
1 534 

Capital expenditure 


Advanced. .....m 

Sampling results: 

"B" reef 

Sampled. '..... m 

Consolidated Murchison 

Issued capital 4160 000 shares of 10 cento each 

Operating remits 


the total reserves at ah mines at 30 June 1978-were es tima ted as follows: 

Tonnage . ... .t 999 000 

Soaping 154 

Vetua.g/t 12,4 

.envg/t 1 906 

The aiiove are reserves mb bs»d on an estimated gold revenue OHW 312 per Wtagrani 
(equivalent to about CLS. 5190 per pence). 

State assistance 

11» Company remains classified as an 'assisted mins' in tatme of the Gold Mims 
Assistance An, 1968. 


Final dividend No. 56 of 25 cents per share was declared in June 1978, nuking a total 
of 35 cpms per dure for the financial year. 

Capful expenditure 

Capital expenditure lor the year ending 30 Juno 1978 is estimated at R750 000. 
?978hPn04M^ mltmamS "* 30 JUn8 1878 ** ** R40 000 I* 1 March 

Financial reatihe 

Sates of antimony coacamratss lass 

realisation etorges. 

GoM and silver sales ...... 

Sundry mining Income . . . . 

Working ■ 

Working lo*® 

Interest recanted. 

Finance ciwrgjss aid scheme rebate and 
sundry non-nuning Income..... 

Ptospectmg and mwastigations . . . 

Loss before taxation 


Loss afuv taxation 



6 months 




30 June 

31 March 

30 June 





145 300 

293 400 

4 002 

3 487 


1 688 

3 776 





1 485 

3 349 

4 834 









5 270 

3 181 


6 431 

1 412 ' 


1 161 







1 055 






1 053 









Channel width ....... cm 28 35 38 

Channel value.q/t 10,5 20.1 18,3 

.cm.g/r 292 694 891 

Basal reef 

Sampled .m 510 252 1 090 

Channel 9 13 10 

Channel value. g/t 63.6 42.6 61,8 

.. . . cm-g/t 604 537 643 

Elsburg reels 

Sampled.. 92 180 562 

Channel 144 130 116 

Channel value.g.j" 8.0 11.2 117 

.cm.fl/t . 1 151 1 457 1 380 

Total — all reefs 

Sampled.m 878 602 2 232 

Channel width ....... cm 29 54 46 

Channel value. 0 /r 19,2 15.9 18.8 

... cm.g/t 583 857 841 


No taxation or State's share of profit was payable as the Company has aaaessed losses. 
Capital expenditure 

^hafexpantfitura for ihe year ending 30 September 1978 fa estimated atR500 000 
(31 March 1978: R800 000). 

commftmems at 30 Juno 1978 are estimated at R291 000 (31 March 
1978: R239 000). 

From 11 April 1978. payment for gold production at the official price plus premium 
on market sales distributed monthly was replaced by payment at the market price. 
The non-recurring balancing payments resulting from the changeover distorted 
revenue for the current quarter, which Is therefore not comparable with pesi or future 

Throe reports have been approved by the directors of the respective companies and in 
each case hero been signed on their behalf by two of the directors. 

19 July 1978 


Financial Times Wednesday 'July 1 ? T 97 S 


Allied Chemical 
drops toxic 
waste plans 


CONTROVERSIAL plans by . a 
U.S. chemical company to dis¬ 
pose of more than 4.000 gallons 
of a toxic waste pesticide in 
Wales have been adbandoned. 

Allied Chemical of the U.S. 
has decided to cancel its waste 
disposal contract with Re-Chem 
International for the trial 
incineration of the pesticide 
Kepone at Re-Chem's plant in 
Pontypool. South Wales. 

The disposal plan aroused 
fierce local opposition and resi¬ 
dents living near the plant 
have applied for a a High. Court 
order requiring Re-Chem to shut 
the plant and move elsewhere. 

Allied Chemical said yesterday 
that it had been forced to cancel 
the contract because of delays in 
achieving agreement with the 
Health 'and Safety Executive 
over operating methods. 

The executive served a pro¬ 
hibition notice on Re-Chem 
earlier this year ordering that 
processing of Kepone could not 
be carried out unless a safe 
system of work had been worked 

The notice was issued because 
the Health and Safety Executive 
was concerned about the hazards 
of Kepone. 

Allied bas placed a now 
contract for the disposal of the 
chemical wastes with a West 
German company Kali and Salz, 

a potash and salt minin g 

Kali and Salz operates an 
underground waste disposal 
dump in its former salt mines, 
2,000 ft underground. The 
drums of Kepone will be 
permanently stored in the old 

Allied said it was convinced 
that the . Re-Chem plan to 
incinerate -the wastes was still 
technically and environmentally 

But it needed to take immedi¬ 
ate action to remove the wastes 
fro m their present site in Mary¬ 
land. adjacent to a new section 
of motorway. 

Re-Chem said yesterday that 
it had originally won the busi¬ 
ness because it was the only 
company that could fully destroy 
th waste without it coming into 
direct human coataat 

Dr. A. K. Coleman, managing 
director, said; “We are naturally 
disappointed at losing this 
valuable overseas business and 
at losing this opportunity to 
demonstrate our technology to 
the Americans." 

Allied was involved in a 
SI OS. 9 m court action in the U.S. 
last year over its alleged failure 
to tell its employees of the 
dangers of Kepone. The action 
was later settled out of court. 

Methylene chloride 
cleared in U.S. tests 


widely-used solvent chemical 
which has been under suspicion 
as a cause of cancer, has been 
cleared as not being a health 
hazard in extensive tests carried 
out in the U.S. 

Dow Chemical, one of the lead¬ 
ing U.S. chemical companies, 
said yesterday that the chemical 
should not be considered as a 
human carimogen (concern 
causing agent). 

The preliminary conclusions of 
two-year animal toxicity studies 
on the chemical have not shown 
up any new reasons for concern 
about the use of the chemical. 

Methylene chloride is widely 
used as a cleaning and paint 
stripping solvent .as well as in 
connection with some plastic 
foams, aerosols and flame 
retardant chemicals. 

The research programme, cost¬ 
ing more iban Sim., has been 
sponsored by several companies 
including Imperial Chemical 
Industries. Stauffer. Diamond 
Shamrock and Vulcan Materials. 

Methylene chloride is one oE 
i!ie most important solvents. But 
it belongs to the family of 
chlorinated hydrocarbons, many 

of which are under strong sus¬ 
picion as being a cause of cancer 
in humans. 

Dow toxicologists have 
reported that there was no in¬ 
crease of malignant tumours in 
either sex of rats or hamsters 
exposed to methylene chloride 
compared with other controlled 

In addition, another study 
made by Eastman Kodak in the 
U.S., where workers have used 
■'e chemical for many years, 
has shown no adverse effects 
related to methylene chloride. 

Kodak found that the mortality 
and health patterns for its 
workers were in line with the 
general industrial population. 

A further human health study 
is being carried out by Dow in 
conjunction with Celanese 
Fibers, but again the preliminary 
studies show no adverse health 

In the two-year animal health 
study, nearly 2.000 animals were 
exposed to methylene chloride 
vapours at levels up to seven 
times those at present allowed 
by the occupational health and 
safety authorities (500 parts per 

Inspectors criticise 
Napet arrangements 


report, published yesterday, on 
the affairs of Land and General 
Developments and Napet 
Securities, the company inherited 
by Miss Pennv Brahms, a model, 
contains severe criticisms of 

The report outlines reasons 
behind the controversial move by 
the Trade Secretary. Mr. Peter 
Shore, in 1975. to enforce the 
t’ify Takeover Panel's ruling that 
Napet must enfranchise the non¬ 
voting shareholders of Land and 
General. The report raises im¬ 
portant issues concerning the 
Secretary of State's powers in 
such cases. 

The inspectors. Mr. Martin 
Nnnrse. QC. and Mr. Peter 
DuBuisson. an accountant, say 
that. " blinded by selfishness,” 
Napet “acted wrongfully towards 
the non-voting shareholders" in 
failing to implement the under¬ 
taking to enfranchise them. 

They also take ‘ a grave view 
of Napet’s removal of the five 
existing directors of Land and 
General and their replacement 
by Dr. P. V. A. McLaughlin and 
Mr. J. H. Rochman. solicitor to 
Miss Brahms—by then married 
to Mr. Michael Caborn-Waterfleid 
—on tbe ground that the two 
men would not have been cap¬ 
able of running the company for 

Te inspectors also deplore the 
conduct of. the Napet represen¬ 
tatives at a meeting in October 
1974 when the other Land and 
General shareholders unsuccess¬ 
fully demanded further infor¬ 
mation from Napet about its in¬ 
tentions regarding its shares. 

The inspectors agree that there 
is ambiguity over whether the 
Secretary of State can take such 
action unless the company is 
being “ oppressively mis¬ 
managed " but argue that they 
were right to recommend the 
Secretary of State’s intervention 

Oil drain ‘calls for 
another Mid East’ 


OIL COMPANIES will have to 
find the equivalent of S50 
fields like the big Forties dis¬ 
covery in the North Sea if 
they are to replace the crude 
oil likely to be consumed in 
the world between now and 
the end of the century. Sir 
David Steel, chaizman of 
British Petroleum, said in 
London yesterday. 

“Another Middle East would 
he necessary to achieve this 
situation and our geologists 
tel] us that there are few. If 
any, unexplored basins remain¬ 
ing to give cause for optimism 
on that score," he told the 
American Chamber of Com¬ 

Consequently, BP, in line 
with the International Energy 
Agency, continued to believe 
that oil production would reach 
a peak some time In the next 
20 years, t 

Sir David said there was real 
fear on this side of tbe 
Atlantic that in the event of 
shortages developing the U.S. 
with its superior financial • 
resources would outbid Europe 
for available oil supplies. 

From a position of virtual 

man of British Petroleum). 

self-sufficiency _ in I960, the 
U.S. bad moved to a position 
where its use of oil accounted 
for about 30 per cent of total 
world consumption, and where 
about half this crude had to 
be imputed, principally from 

members of the Organisation 
of Petroleum Exporting Coun¬ 

New discoveries, urgently 
needed to offest falling U-S. 
production from, old-estab¬ 
lished fields, were not being 
made. Last year more oil was 
found onshore In new fields in 
the UK, quite apart from the 
North Sea, than in the whole 
of Texas. . . 

Sir David also stressed the 
need for a greater emphasis on 
energy conservation. Last year, 
BP estimates, it was able to 
save well over £50m by using 
energy in its operations more 
effectively than before. _ 

Emphasising BP’S own links 
with North America, Sir David 
mentioned that with the com¬ 
pany’s recently - attained 
majority holding in Standard 
Oil of Ohio, some 40 per cent 
of the group’s assets were in 
the UJ5. 

“Like all new additions to 
families, we are both going 
through a period of adjust¬ 
ment and understanding as we 
meet with a new style of 
operation and a new variety of 

Relaxing before the Middle East peace talks get under way at Leeds Castle, Kent, are 
U.S. Secretary of State Mr. Cyrus Vance. Egyptian Foreign Minister Mr. Mohammed 
Ibrahim Kamel and his Israeli counter General Moshe Dayan. 

77ifr announcement appears as a matter ofrecord only. 




Dils 75,000,000 

Vff/b BearerBonds 1978 due 197^1988 

Amsterdam-Rotterdam Bank N.V. 
Algemene Bank Nederland N.V. 
Nederlandscbe Middenstandsbank N.V* 
Pierson, Heldring & Pierson N.V. 

Bank Mees & Hope NV 
Nederlandse Credietbank N.Y. 

N.V. Slavenburg’s Bank 
Van.der Hoop, Offers & Zoon N.V. 

Deutsche Bank Aktiengcsellschaft 
.Swiss Bank Corporation (Overseas) Limited 

July 4.1978 

Homes plan 



By Michael Cassell. 

“grave misgivings” if housing 
associations began building 
homes for sale, the House- 
Builders Federation says. 

Mr. Colin Shepherd, president, 
told members of the federation’s 
Southern Region in London that 
proposals in tbe housing policy 
review would remove restrictions 
preventing bousing associations 
from building homes for sale. 
Private builders, he said, would 
regard any such move as poten¬ 
tially serious. 

He commented: “The exten¬ 
sion of the Housing Corporation's 
activities into the field of hous¬ 
ing for sale would only lead to 
a greater demand for the limited 
amount of land available for 
house building. 

Mr. Shepherd said it was not 
yet clear whether forthcoming 
legislation on bousing would 
contain such a provision but 
that, if it was, builders would 
oppose it. 

“In practice, many registered 
housing associations already 
hare associated bodies which 
build houses far sale, but it is, 
under current arrangements, 
quite impossible for the activi¬ 
ties of these organisations, to 
attract a government subsidy. 

“The removal of the restric¬ 
tion in the 1974 Housing Act 
could change ail this and could 
tend to blur, almost beyond dis¬ 
tinction and control, the already 
greying area between private 
enterprise—subject directly to 
the competitive pressure? of the 
market—and public enterprise 
competing on a subsidised 

Robert Collin 

A REQUIEM Mass for Robert 
Collin. Assistant Editor and chief 
leader-writer of the Financial 
Times, who died at the' weekend, 

will be said at Sl Ethelreda. Ely 
Place, London ECI at 10 am on 
Friday, July 21. 

Banks and brokers 
reminded of code 


BANKS and foreign exchange and from the Foreign Exchange 
brokers have been sent a and Currency Deposit Brokers 
reminder of their responsibilities Association to keep a check on 
because of growing concern over the market s observance of the 
the danger that accepted stan- terms of tbe so-called O'Brien 
daxds of practice in the letter. This was set out in 1975 
markets have been deteriorating, to set out basic standards of 
, _ . conduct. 

hI 0n * of rte main poinits of this 
tSo c °de * s tk at banks which use 
brokers for foreign exchange 
business should not also deal 
K direct with other banks, subject 
a 1 the to certain limited exceptions. It 

Bank of England. 

The note, sent out on June 19, 
particularly concerned apparent 
breaches of rules requiring 
banks to deal through brokers. 

limited exceptions 
is believed that a certain amount 
of direct dealing has been going 

A reminder bas also been sent 
that in tbe currency deposit mar- 

of keUf 1b^nks^brokere in do¬ 
ings with other banks In London 

The committee 

was set up they should be members of the 

with members from the banks association. 

British Leyland executive 
‘confessed to forgery’ 

A BRITISH LEYLAND executive any doubts that was the time to 
went for a walk and then con- “opt out.” Mr. Cliff said: “He 
fessed to -forging a letter from responded quite confidently that 
Lord Ryder, former chairman of he could vouch for all the docu- 
the National Enterprise Board, meats. He had no qualms what- 
an Old Bailey jury was told soever." 

yesterday. - On May 20, after the Daily 

Mr. Peter Cliff, a Daily Mail JKJ had published the story. Mr. 
reporter, said his newspaper had at a Public 

published on May 19 last year a hous « beside the Thames at Rich- 
story accusing Leyland of paying Stewart Steven, Aaso- 

bribes. ’ This story had been cia t® Editor of the Daily Mail, 
b'ased oh documents supplied by ^ r - Nicholas Guitard, a freelance 
Mr. Graham Barton. 34, of journalist who acted as go- 
Liocroft Gardens, Hounslow, between and Bartons's Turldsh- 
Middlesex, then a financial born wife, Fatima, 32, were also 
executive with -the company. ^ r ^ s f Dt ‘, 


zsrs^'ust jsas SLHS S— 

tion& red “ SUPPOrt 11,6 * UeE1 - “iffS a"-St was 

“ .. ^ not forgery." But after a walk 

" , a at a lons rtver with his Wife, 

the Waldorf Hotel. London, Barton, had returned and con- 
before publication, the two re- fessed: "I have been a bit 
porters had told him if he had delinquent," said Mr. Cliff. 

bid to end 

By Ray Perman. 

Scottish Correspondent 

THE SHETLAND Islands Coun¬ 
cil is almost certain to allow.oil 
companies to anchor accommo¬ 
dation ships off the Solium Voe 
terminal site—vital if construc¬ 
tion delays are to be made up— 
after agreement by the com¬ 
panies to guarantee any loss in 
rate revenue up to £L6m. 

Delays to' the terminal are 
causing concern at the highest 

The site was visited last week 
by Sir David Steel, chairman of 
BP, Lord Keartim, chairman of 
the British National Oil Corpora¬ 
tion. and Sir Jack Rampton, 
Permanent Secretary at the 
Department of Energy, who 
urged contractors to do aU they 
could to make up for lost time. 

The project, the largest of its 
kind in Europe, is behind 
schedule, particularly in the con¬ 
struction of gas treatment plant 
As a result the council has cal¬ 
culated it could lose between 
£l.lm and £L.6m in rate revenue. 

No rating assessment has yet 
been made, but it has been 
estimated that it could be as high 
as £30m. The council's present 
rate poundage is 45p, which rep¬ 
resented a 400 per cent increase 
for commercial and industrial 
concerns over last year. 

A demand for compensation 
for any loss in rate revenue 
because of the delay was made 
by the council in May. 

BP, the operators, on behalf 
of the 32 companies in the ter¬ 
minal group, bad agreed to meet 
any shortfall, hut in return has 
demanded that permission should 
be granted for two ships to 
accommodate 800 extra workers 
needed to speed construction. 

This would bring the total 
workforce to nearly 6,000, 
although shift systems would 
mean that only three-quarters of 
this number would be on the 
island at any one time. 

Fulmar rig 



By Our Scottish Correspondent 

A MAJOR oil platform contract 
for tbe Fulmar Field, 213. miles 
east of Dundee, was awarded 
yesterday to Hi-Fab, ! the 
Cromarty Firth yard owned 
jointly by Wimpey and the 
American offshore group Brown 
and Root 

Shell Expro, operator on behalf 
of the Fulmar consortium, 
declined to say bow much the 
12,300-ton platform would cost, 
but the contract is understood to 
be worth £20ra. 

It will secure employment for 
the 1,500 local workers at the 
yard until early 19S0. 

By maintaining a run of 
virtually unbroken work, Hl-Fab 
has emerged as one of the most 
successful of the six UK yards 
that have secured orders. Three 
weeks ago it launched a second 
steel platform for the Ninian 
Field and it is presently working 
on two small structures for 
Amoco in the Indefatigable 
North Sea gasfield off the 
Lincolnshire coast 
The Fulmar platform will be 
built on skids alongside the dry- 
dock used for previous large 
projects built at Nigg and will 
be barge-launched. It will have 
eight legs and will be designed 
to drill and produce oil in sea 
32 metres deep. 

Steel will start to be delivered 
in August and tbe platform is 
scheduled to he completed in 
the first part of 1980. 

One of Hi-Fab’s unsuccessful 
competitors for the contract was 
the new multinational joint 
group H D-N, formed last month 
by the Anglo-French concrete 
constructors Howard-Doris and 
the American-Dutch group 
NAPM. * 

case today 

By Margaret Reid 

BURMA! 1 OIL'S application for 
an ored compelling the Bank of 
England to disclose 62 documents 
in connection with its £5Q0m 
action against the Bank concern¬ 
ing its former shareholding in 
British Petroleum. will he heard 
today in the High Court before 
Mr. Justice Foster. 

The application had been due 
earlier this week before Mr. 
Justice Slade, but he decided it 
would not be in the public 
interest for him to hear the case, 
apparently because be had some 
interest in the matter. 

Cabinet plans bigger 
role for managers 
in participation 


THE GOVERNMENT is to con- just because they might not 
sider ways of increasing the role belong to a trade union, 
of -managers in its plans for These points- tre to be dis- 
legislation on worker-directors cussed m detail between civil 
and statutory participation servants and the institute s-staff. 


The. delegation- had less 

This follows a meetingy^ter- -on*^ wLbjert i3£ht 

day between Mr-Edmund Dell. be B counterproductive. 

Secretary for Trade, ana a sir Frederick suggested that it 
delegation from the British be more constructive for 

Institute of Management the Government simply to make 

Mr. Albert Booth, Employment a pu bUc statement calling on 
Secretary, attended the talks, companies to introduce forms of 
which were concerned with the industrial democracy. 

White Paper on industrial This could be backed by both 
democracy published two months a CO de of good practice and a 
ago. threat to’ legislate, in soy three 

The managers’ delegation, led years’ time. If industry did not 
hy Sir Derek Ezra and Sir make sufficient progress In the 
Frederick Catherwood, said that meantime, 
the interests of junior and .Such an. approach. Sir 
middle managers needed to be Frederick- suggested; would en- 
spectally safeguarded in any able industry to develop schemes 
future legislation. flexibly and would mean that any 

These managers should not be legislation that might eventually 
excluded from statutory rights- be needed would be based on 
to participation arrangements more practical experience. 

June unit trust 
sales total £49.6m 


80 Em" 



UNIT TRUST sales during June 
were not quite as high as those 
of the two preceding months, but 
at £49.6m the figure was still the 
third highest on record. 

However, tbe sales of three 
new funds contributed £6.5m to 
the totaL Garun ore Extra Income 
pulled in £1.2m during the 
month. Crescent Tokyo £2.4m, 
and Kleinwort Benson's Smaller 
Companies just short of £3m. No 
new funds were launched in May, 
when total sales amounted to 
£53 2m. 

Repurchases in June were well 
above this year’s monthly 
average of £213m, at £25.7m. 

Net new Investment for the 
month worked out at £23.8m, 
against £27.6m in May, and a - ' * 
mere £S2m a year ago. . -June this, the value of the funds 

Net new investment for tbe first invested through unit trusts has 
half of this year has totalled increased from £3.06bn to 
£165.3m. thanks to the boom m £3.71bn. 

•£!L a JS. 1 S2' fflKFES ^ increase in of the 

IE* for SS average holding will be welcome 

K. ■" h j SFiiriT™ 


plain that with the present scale 
of management charges, it is 

the middle of-last year—as unit- 
holders took advantage of a rela- 

smail holdings. 

They have been campaigning 

lively strong market to pull their for some time for a change in 
money out—has now abated.- the way charges are levied, which 
However, the number of unit- is regulated by the Department 
holders’ accounts is continuing of Trade. A -statement, by 
to fall. At end-June last year it Baronness Birk in the House of 
was 2,061,754; at end-May this Lords last week has given rise 
year 1,901,782; and at endrJune to hopes that their case is being 
1,887,399. Between the end of more sympathetically considered 
June last year, and the end rof now than it has in the past, 

More Government aid 
sought for offices 


A QUARTER of the working Government should now con- 
population is now employed in sider ways^f generating fresh 
offices, and the proportion is ex- job opportunities in the office 
pected to grow further, says the and service Sector! He stressed 
Location of Offices Bureau. that schools \ should provide 
Its annual report, published educational skillsi to equip the 

yesterday, says that the Govern- v i t0 

ment bad, in the past, given sub- bifclUysophwticated elec- 

stantial cash to industry. It tronip offire Oquioraent._ - _ 
would now do the same for the .' Durn *§ 19 TT. the LOB—whose 
office sector. terms of-reference have been 

The report also suggests more 

widened to help promote office 
employment in- inner - urban 

Check on foreign car forgings 


SUGGESTIONS THAT _ the cars that has taken up to half in the labour force—one in seven Italy, Spain and elsewhere, 

sSSfg K? Sff SA Mftf rssas jajsjmos s 

sr by u,e irop tMsers ’ i« b Ma '■sssj&’SSEri-. 

Members say evidence is were m — e C 4 hrislm “’ ^ ing forging plants hope to make 

accumulating of sub-coniractore S„t n n v!i\!w 1 ? nl £ *?*.* fae S lon “S to 8« back good lost business by linking 

to the automotive industries y foil-time working and more with the U.S. motor industry, 

using Japanese and other foreign While exports have he.lped to normal productivity levels. especially for engine compon- 
forgings in products being sorten the blow, there arc few **we have always seen the ents - 

supplied to British car, truck and exporters of forgings of conse* danger that an attempt to stop Moving to highly - stressed 
lr 2£t° T makers. quenee. GKN. which produces people selling raw steel into smaller engines involves leam- 

This is compounding the forg- m l p an UK output, Europe will cause them to move ing a new technology, whirh UK 

mg industry’s problems. It has easil y ™ps the list with 20 per down the line into forgings and producers have at their finger- 
had to contend with the failure ‘? nd ,s *°oking for partial castings.” Mr. David Powys, tips. 

of British plants to meet produc- salvation to the U.S. market director of the National Associa- They are honinx that, with tho 
tion targets; rapidly increasing P roduced tion of Drop Foyers, said. inSS?8? ye5 

fSilS5? ent * K° f ve u? SS - Erom lhe B6ttme smal,er - “ A number of our members in relation to the dollar, UB. 

continent oy multinational com- Like the rest of the industry say their customers are buying vehicle producers will now look 
pames; and an mfiux of foreign it has had to make savage cuts forgings from Japan, Germany, towards the UK, 

forward-manning on office space. areas (including parts of Lon- 
The problem in the next few ,j on ) and to attract international 
years will be how to get office companies to the UK—handled 
space m places which may be 239 approaches from companies 
capable of supporting office em- employing a total - 011 - 12,216 
ployment or, indeed, where it is people -- 

wished to encourage this employ-. __ 

ment but where no buildings are - v • 

available.’ SfflVffg6 SHIP 

Mr. Anthony Prendergast, £ «■ 

LOB chairman, said that there -lOI* JVICrSGY 

«Sl p, lS’iita"uS a S 

anffioae 'us M£ s S3SC 
sSE? s-® aswateS- 

for natural growth. comparable price and delivery 

The LOB suggests that funds date from British yards, and 
set aride for development areas designed by Graham and Wool- 
should be used to build a few no ugh of Liverpool in association 
advances offices, instead of the with the company, 
usual advance factories. The vessel is the fourth on the 

Mr. Prendergast said that the river to carry the name Vigilant, 

Louis XV bureau plat 
fetches £13,500 



A SALE of furniture at Phillips 
yesterday fetched £138,040. 

Wright paid £13,500 for a Louis 
XV bureau plat (estimate 
£8,000); and £12.500 for a Louis 
XIV marquetry commode (esti¬ 
mate £10,000). 

There were many foreign ' ■ - 

buyers, including Stelnltz, who £85,199 at Sotheby's Belgravia,. 
paid £8.000 for a bureau plat in ** Boston Stomp,” by Alfred Daw-. 
the early Louis XV-style, and an Mn . selling- for £800 and a- pair 
unexpected price of £2,300 (esti- of paintings tiy Edward Armfield. 
mate £700) for a French direc* puppies the same price, 
toire bidet. Oriental manuscripts and 

In a .sale of dories and watches, miniatures '-contributed £54.655 
which totalled £86.500, the for a two-day total of £165,506. 
highest price of £10,500 was paid At Sotheby Bearne, a Isphahan - 
by Mannheimer for a Louis XIV rug fetched £2.050 in a rugs and 
regulateur long-case dock in-the carpets^ auction 'which''realised 
manner of Bo u lie. Camerer Cuss £25.770. . 

paid £4,000 for a late 17th At .Chris&e'St Japanese works 
century verge watch by Richard of-art'.were .sold far £145,504. 
Riecorde of London. and art nouveau for £76J57. The 

At Sotheby's, European, top price was The'£8,SQ0 for'.*□ 
ceramics sold for £51,546 with early Levcilie cameo vase; prob- 
top prices of £1,500 for a Sain?.ably by Edward MtcheL 
tonge oval dish of the 17th cen- A decorchement" paie-de'verre 
tury from the School of Bernard vase was bought by Lasientre for 
Palissey and £1,450 for a Marco-.. £6.000. -The coin sale totalled- 
lini Meissen part-coffee service £21,050 with'a highest price, of 
with 14 pieces. .. £2,050 from' Lnbbock—foiv'- a- 

Victorlaa pictures fetched George V 1911 proof ret In -goidr 

Financial Times-Wednesday -July 19-1978 

‘\sfrt _ — Improving 

Nation , . performance 

^tUirate PYlTlldOfl ALTHOUGH tbe eireuit breakc 

. VAIl UdlUll lubes that will eventually com 


for building products, 
heat exchange.ffuid power, 
general engineering, . 

2 ip fasteners, refined and 
wrought metals. 

IMI Limited, /f~^S 

Birmingham, [IMI 

England \Z_y 

IttlU O.IC C X I n ISlfllN ALTHOUGH ibe Circuit breaker , M ILimited. 

mJLvUXvFXi lubes that will eventually come Birmingham 

TTtST COMPANY m n-: t : off a new production line which c n „i-^ * 

. Br . ,la . , “ 10 capacities equivalent to LOOO and ASEA Isolation has decided to En 9 |and 

roaucc extrusions using indirect 2,000 ton direct presses, giving a build at a cost of £240.000, will _ 

resses. and the first in Europe maximum annual output of 7,500 be built up In basically the same 

> use the process as develooed t0 2®* way as biUierto. a new raanii- A MPTAIWflPKIMCS 

y Texas Hydraulic Presses 7110 capable of faeiuring technique is to be • WltJALWUKMNb 

.nchor Extrusinns >c producing a range o£ sizes from employed. ^ n 

y-c. ‘ ,1S novv opera- J-inch rods or shapes within a The tubes are'made up from V irioH ¥11* ACC 

Th hieiA ,i . 5J-inch circumscribing circle. Blass fibre and epoxy resin UlllCEU. VOO 

mrfirli* Ul j 0nce between They can go below this minimum providing excellent mechanical « *1 

• ihai ‘iifw- Jl. direct Process depending on the complexity of and electrical properties. The Tl'fcl* Til A 

l “? 1 IQ “lrect presses force a the shaoe. vacuum iraDreenation method XX/X XXX V/ 

1 f49i 

• il.Ni _. __ucyciiumg oa Luc COUUUICAJLIJ’ VL “"U viniijifl] jji uperuc*. me. ■ a ■ | ||u 

K l P, resses force a the shape. vacuum impregnation method 1U1 XiXC 

fnrnirT i\. a u'., '*' 35 0 PP&s®d The company should be of used ensures a pore-free homo- 1 ■■ 

i lorcin me billet through the interest to many fabricators, feneous tube wilh good adhesion WfMPITClUTT! 
le. the perfecting of this especially as the presses are between fibre and resin. *» vJM. JV.OJXvr l# 

■£!??“«« that extruders can suitable for, short runs. The The new technique will pro- A HYDRAULIC coining and 

/mf nrHnK CUSt i° merS ex ! trusj o n s company will accept orders for vide better surface finish and s t amp i n g press—the Mini-Forge, 

” U h . clo J? ep tolerances, quantities as low as 25 lb ! hl s is considered an important ^ h , c J e X crts 250 ton pressure 

mre accurate shapes and good til kilos). improvement since it reduces withill a press smaller than an 

AnnhnS pr ° pei ; ties - Anchor Extrusions. Cleator be incidence of surface track- offi p e de £ k _ D o^ inegiporates 

iil» Ch ° r j- ■ a 30 0 ? er a coin ' Moor Industrial Estate, Cleator ,n § and contamination. At the electrically controlled production 
hnr ef i an 0 ? 1 f m8 • and electr °- Moor - Cumbria CA25 5QB. is “™e the tube walls are cyde"^ mJs Sf mSer. Rhodes 

b Th! tu hl e painting service, backed by the J. T. Lcavesley ?l« e M lTa , nsparent . 1 s ? lhat Jt . 18 C.ill and Company, Greenside 
t ,™ e Presses tha t the com- Group which has an annual turn- R? 3S,i> e ,0 “c oil levels, when Works ^ 5 t Carlisle Drive, Pudsey. 
>any are installing have over in excess of £14m. break are USCd *” 0,1 c,rcu,l ‘ Leeds LS2S SQL (0532 572727). 

Costs* will also be cut parti- These allow single cycle opera- 

Patterned concrete slabs HfSSiS £JFs£H-d'S 

RANGE of machinery which pattern quickly and easily mould will be possihle. plete. ^iy f°*™j n S pressure 

llDws a wide variety of according to production require- Further from ASEA Villiers between 15 and 250 metric tons 
jaiterned concrete paving and ments, and reduce manpower House, 41 Strand. London 01-930 may he seleclcd and ibe press 
loor slabs to be manufactured through the use of highly-auto- 54n_ ‘ will automatically reverse when 

in the same piece of plant has mated equipment that pressure is reached, 

li'f ome to the UK via Henke The machine eliminates the rs-ra • Continuous automatic cycles 

|\j Great Britain), Moorfield Indus- need for any filter element lo be g 111* A A—CIVIC are push-button controlled wilh 
l rial Estate, Yeadon. near Leeds, used in the mould and, says the -i-lA WC HAlk3 the press cycling at between J5 

Vest Yorkshire (0532 502145), company, cuts out the problem ■» m and 30 strokes per. minute 

|A Tbe Hermetic Silenta press of effluent disposal which can be flTlOrFIF* fll'I'l/A dependent on tonnage and stroke 
I\l fcv ,Ja ^ es il possible lo maintain costly agd time consuming in XJ.1VJXUX UI1 VC lengths. Embossed or stamped 
■ y.(l!ll‘on slanl production at any conventional slab manufacture, hou^fd in nn* unit impressions on continuously fed 

•R equired volume, change the Element size is up to a maximum Jn Hramar Sr B th?2 Hnrisinr be made every two 

•ubber face plate and therefore of 1 metre by 1 metre. iSSKmffi^Se K seconds. 

tbe X. Y. and Z axes of a ^ small overall size of the 

_ machine tool head, together with P ress * wys the company, makes 

I 1 1P-11TI the necessary power unit. itpossibleforittopasscomfort- 

Vi'JiJl/l lit up Intended for the continuous ably through a normal doorway., 

"* v, jAS TURBINE compressor Called Phoenix, the packages. RPAf control of permanent thus making it particularly suit- 
; ». T packages designed for the oil a r * designed and assembled to magnet DC motors, each section able for in-siore production or 

j \lT in j n a<i industries are to be P rovid e a high level of depend- *>F the unit can supply 3,3 kW jewellery workshops. 

FI*! it, i ", *V* , mes are - 10 De ability. . and has a number of built-in . 

* Ul narketed- under an agreement Phoenix will be available from electrical facilities including A AAllFCli'A 
inn on need by Elliott Company, both organisations in capacities dynamic curent limitation and Ul tl-lV 

i division of Carrier Corpora- up to 5000 hp and will be used ?P e ? d governed limitation of m _ 

-Jon. and Ruston Gas Turbines, for such applications as gas lift, ignition angle. TllQAITlCT fVT 

These units combine Elliott gas-oil separation, natural gas „ "i ore . f . rom Jf 16 CO o\P a 5?ovIX- 
compressors with Ruslon gas liquids, plants and gas gather- ^ 3 U enste m er . Strasse 23, D-8770 * 

j v turbines and auxiliaries on a ing. Lohr am Mam > Germany. AAHTlTiriTI AF1TQ 

v < :nmmon baseplate and should More from Elliott Turbo- C/vrXXXX#.XXXXCXXXiJ' 

-“I installation and maintenance machinery, 197. Knightsbridge, Q CONFERENCES GRIMSTON'S mini- positioning 
• ^osls- London, SW7 1RB (01-589 8111). _ "tahlo ,i«pd as an aceessorv to 

r ,M , """ ue - abi]ih , - and has a number of built-in . 

marketed^ under an agreement Phoenix will be available from electrical facilities including A AAllFSli"A 

innounccd by Elliott Company, both organisations in capacities dynamic curent limitation and rlwl/Ul 
i division of Carrier Corpora- up to 5000 hp and will be used ?P e ? d governed limitation of m _ 

'Jon. and Ruslon Gas Turbines, for such applications as gas lift, ignition angle. TiIq^UKT FIT 

These units combine Elliott gas-oil separation, natural gas _ More^ from the company at UXAL>XXi^ vIX- 

:ompressors with Ruslon gas liquids, plants and gas gather- P 3 U enstei J er . Strasse 23, D-8770 * 

^turbines and auxiliaries on a ing. Lohr am Mam » Germany. AFIITITIFITIAXITC 

:nmmon baseplate and should More from Elliott Turbo- C/VrXXXl#XXXXdXXiJ' 

:ut installation and maintenance machinery, 197. Knightsbridge, £ CONFERENCES GRIMSTON'S mini- positioning 

»sts. London, SW7 1RB (01-589 8111). m table, used as an accessory to 

I JlCAllCCllTTlC Pillar drilling machines, is on 
_ M m *• ■ BDAAFeciuA X/XS%/general sale. 

"# DATA PROCESSING _ This follows demands from 

Tiff * #1 users of other mokes of drilling 

-Micro switches IU0SS3-^6S machine shops, technical colleges! 

° « An l inrr and many specialist companies 

LIKE MANY of the companies originating messages to.forward ^cdlxllci for accurate positioning of com¬ 
pering telegraphic telex mess- them to the store at any time u ponents on production tables, 

ace witching systems, inter- fpr ,aler onward transimssw* i So DURHAM UmVERSTHf will be The table, which can either be 

national Management and L hat ,l - does n0 ^ "3 a ^ er lhe ye " ue L° r *** ? I l XiSh H Z dr ?' mounted on an intermediate drill 

national .management dn a destination terminal is engaged, mechanics Research Association s ta bj e D r be free standing is an 

Operational -Sysleois is now in fact, the system will queue eighth international conference inexpensive aid to the produc- 

!iff«*ring a microprocessor- messages addressed to a-particu- on fluid sealing, September 11-13. ti 0 n of all types of product; e.g. 

based equipment which is lar terminal, ultimately Irans- Sealing in all its theoretical sma ]l jigs and fixtures, the 

iniended lo allow this kind of niitting them according- to a and practical aspects will be machining of small batches of 

technique t» come within the priority code. covered. particularly the work when the cost of jigs Ls 

reach or "even the smallest In addition,.multiple destina- magnt . ric j jquid SC3 i ‘ first nor justified etc. 

business." . tl0ns can described by a team from Oxford Area of the table is 18 ins by 

.The new 1MOS Senes 300 routes can be barred, codes and university at the 7th ■ Inter- 10 ins. and the loadscrews with 

Micro switches messages 

LIKE MANY of the companies originating messages to.forward 
Serins telegraphic telex mess- them to the store at any time 

on fluid 

. ... - * , _ _ _ _ j 1 c tii iui. i ‘»***'| tua, piiu me ivnusucna nnu 

N'^tPin amortised over a five speeds can be cmiwrMd . It national Fluid Sealing Confer- 5 mm pitch moving hi adjustable 
.car period will, it is assorted, desired ira&p stati«Ucs (and ej w iT1 1975 . nuls prDV , de 13 ms lon^tadinal 

provide sophisticated message meswjBCS themselves) can. be ^ hor from tbe o rf . anis ing and 6 ins cross travel , 

handling facilities for as little re *™ yed : qn- c hn( > Secretary. 8 th 7CFS BHRA Fluid Grimslon Machine Tools.] 

handling facilities for as little retrieved . 8 lh icFS BHRA Fluid Grimslon^’IS' Tools. 

aS U»tas' "n re jip«SCO processor, L.n°, LoUp EC4A MB'idf-MS gggffiW. Bedtor4 £&”*• *"*• TOS 

the equipment allows terminals 41331. MK4J 0AJ. . 1RZ. 0-33 -18i. 

Supermarket terminals a rjjffArAnf varn smin 

PR OCR.-VMM ABLE terminals and example, methods of handling UUAVt Vlll J €M.M. MA 

. PROGRAMMABLE terminals ana example, memoas or nannung--- 

, . ;r ti runtroHers that allow super- coupon and food A SYSTEHf of unconven- presents the fibres to the rollers! 

? . * r: : . ^markets to improve nd can the tional spinning has been via a standard double apron.! 

operation and in-alore repmls stoi^ l a nrf t0r pnntpnt nf sales developed in Austria in which two-zone drafting sliver and, by, 

have boon announced by Inter- form and content of sales ^ ^ made ^ of greater redljdng the d i ameter of 

national Buamess Machine, m r po • nrQ ducts make it strength, differing from aU other perforated rollers to which 

White Plains, - r stores to modify exist- systems in that the fibres are at negative pressure is applied from 

.T«o “J* nrndiints Inc anulications or add new ^ stages under very positive within, it has become possible to 

cither IBM program pro ucts I 8 PP t al j c reor dcr- control, says British agent Geor- present individual fibres lo the 

nr iiscr-writlen fre y E. Macpherson. West yarn forming zone and so control 

SS, an 4 de Su°/ T provide Buford Nottingham NG2 6 AD jjj, pr^ely the delivery of 

nornntt mana-’ement to tailor some basic checkout functions m tow- sbs/un. me teeasiocK. 

terminal f unci ions 10 the require- the event store controller sup- The process> cal]ed DREF III. or p^ned 3 Sr roHe/ lo°°oMn 

nicnls of individual stores. For port is interrupted. is based on the use of standard the P fibr ^ f^om ihe stiver ffis 

dmibJe-apron draftineimitsas , atest imit is said 10 pr ^ UCB 

Tells what pays off .. rSSSS™ 

PROVIDERS of coin-operated to build up statistical data re?, ^le mvesti^nt savings as the ^ usual frames, 

vending or entertainment lating lo takings over a period jJJJJjfPt « n ^kHnp 1116 company anticipates that 

machine*! will be interested in a of time. It then becomes possible ^uldI and is based on existing when ^ commercial units arc 
bureau lervirt offered by CMG to spotlight those games which elements. launched next year, not only will 

Computer Management Group are waning in popularity ana. instead of fibres from sliver short staple fibres (about 40 mm) 

iMiddlesex), designed to show move them to another area being opened by a toothed roller be processed, but ’production 

the profitability of video games where they might achieve more and blown into this nip. as in rates will be around 450 metres 

ma.-hini-s nlaced by Cherry income. J the older system, the new method per minute. 

rVisurc lUM. Data from the system is posted 

* Tho system maintains such to CMG’s recently introduced ^ ENVIRONMENT 

details us tiie purchase price and financial accounting service, -W tPIVlKUKIflLW I 

I 0 }® *,! _ ..urrent and previous FACT, which handles the rom-'Tf • ■ • a. a. 

locations or S machine, and pany s sales, purchase and^ nomi- H111111(111 VJII2 COSlS Cllt 

lhe extent to Which the machine nal ledgers; previously. Cherry *AUUUUU 

has depreciated. earned mi RECENTLY FACED with a cost flexible tube. Steps were taken 

Bui in particular the system CMG is at 320 Middlesex -£S,0M for putting a con- to prevent dripping from the 
lakes details of collections from East, Greenford, ventionai humidifying system nozzles if the air supply should 

the video games and uses them. lUl-aio j n j 0 area 0 f one 0 f f a fi_ 

its Huddersfield mills, yam Hu midi stats control the elec- 

_ a • spinning company Fred Lawton trical supply to solenoid operated 

lV/1 rim TJISl ^d Son devised its own system air valves in tbe compressed air 

lVIICXU^ X XiXX ITT for only £3.000 using pneumatic line. A fall in humidity opens 

,... MICROSYSTEMS hag built cent higher speed than the atomising nozzles and fittings the solenoid valve, admitting air 
AMI nil segno earlier units. from Spraying Systems Company to the nozzles. The spray shuts 

new mourners -. . AMI Microsystems, 108, Com- of Chicago. down when the humidity reaches 

microprocessor lamnj, wmen mercial Road, Swindoo, Wilts.' Fifty of the nozzles are the required level, 
have operating speeds of up to 0793 31345 . mounted in pairs on a stainless Apart from being cheaper the 

Ihe^vide^garnes^and^uses th?£ UH-578 $30?*** 

Micros run twice as fast 

have operating speeds of up to 0793 31345 . 
uvicc those of the earlier 

high-speed. A end B • MATERIALS 

vorsiuiis of the S6S00 micro- ■« « 

S«r itself, plus the S 6 S 10 ColOUT'ID 

raiiduin access memory 1 . SB821 *** 

steel water pipe just below roof system occupies less overhead 
level; with strainers to prevent space and maintenance is 
clogging. Connections for the *e. 

atomising air are taken direct to More from the UK agents. CT 
each nozzle from a second pipe fLondon). 3, Hobart Place, 
by means of short lengths of London, SW1. (01 235 1304). 

. •: *M»-' KMS50 asynchronous « a n» flip concrete • safety 

\l- ? lions interface adapter. HiV VUUVIVIV ** ! 1 

ur these new products, the B PERMANENT CEMENT colours Vnn lo goo IAQI/'C 

vrins nffer the highest for floorings, renderings, precast U1X gdS lCflA3 

poiSg,' e a ic hS havc°bMn 0 fntro- HECENT reports have indicated supplied with the cans to assist 

LTnrrace adapter and asyn- duced by Sealocrete Products, growins concern as lo the the foam cure- m sealed cavities 

-’‘Lhronfmfi communications inter- Atlantic Works, Oakley Raidof gas tracking or very dry conditions. Foam 

.Lhronnus com Southamoton SOS 4FL 10703 through service ducts Into com- density is in the range of 

-till*' face adiiptcr^ m tms sroup^” Southampton ^ ft8identi|d pro . is-23 kg/cubic metre and? after 

S ha. a , 0 | 1 >Sui« access Sealocrete Dr>tone is said to perties. cure (apprommateli’two hours) 

tinir nf So nanoseconds by com- ra Lx easily and uniformly with .Thepipehnei services division the foam can be cut, sawn and 
“"J "I 10 microseconds cement to produce strong, attrac--of BTR Silvertown m Burton- even painted if required. 

STS nanosewnds with SJe?nVdurable colours, its high on-Trent. has developed a sealing Fire-resistant Properties are In 
nd r mnriPls staiirinc power enabling foam, “Duct-pac,” which it says accordance with ASTM D1692 

Mnflak clainine . nOWGr Piuiuuiii, huilu il 

cartier models. economic usa^ for interior and provided effective, permanent and BS 476 part 7. 

The new A version parts, econ _ nn i:pa t iDns and inexpensive sealing of gaps Cool conditions prolong the 

operate at 1.5 MHz or at a0 per exten pp between service pipes and duct- foam's shelf life, which averages 

sealin'! tbe duct into the some nine months, and tho 

==--- „ " r ~m ■ ■ ■ wall, optimum operating temperatures 

i lAfirft fit r Duct-pac is a polyurethane pre- are between 5 and 20 deg.C. The 

XX VVII viavHMIw • polymer'foam and is supplied in foam offers effective resistance 

im uiuimiim 500 8,11 aerosol cans which to rot, ageing, rodents and 

« an Minimu*" extrude some 10 litres of foam, chemical attack. Adhesion to 

LENGTH It gives a permanent and flexible substrates is good, with the 

Seal able to withstand at least exception of polyethylene, but in 

„ rUiuprv ^psi. far above any gas pressure this instance Duct-pac produces 

! Thousands Of types and sizessi stockier immediate delivery likely to be experienced. an efficient gas seal by physical 

! » minAii /w ecf ftUft * PBgngPl lfmw 2 l 3 g 3 S 5/2 The one-component foam re- expansion against the material. 

I LONDON 01-561 mu quires moisture to cure and this BTR, Pipeline Services Divi- 

MANCHESTER Q61 -872- 491 5 is normally available from the sion. Hominglow Road. Burton- 

TRANSFERG 0 JLLCHARGESGLADiyACCS'TED^ atmosphere or contact surfaces. on-TrenL Staffs DE13 0SN. 

pjMr EMERGENCY NUMBER PI 6373567 £xL409 MoiAure tissues are, however, 0283 61171, 



Thousands of types and slzesin stxkfty immediate delivery 

LONDON OI-SeiBt18 ABERDEENm$32355/2 
MANCHESTER OS1-872-4915 

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Address _ 






Financial Times Wednesday July 19 1978 



Tories reluctant to agreie summit claims 


yotorday modestly claimed no 
mnre than “a good measure o( 
success" for the Bonn SummiL 

Much to his annoyance. Con¬ 
servative criics were markedly 
relurlanl to credit it with even 
that much merit. 

‘'It represents a combined 
a Hack on the economic prob¬ 
lem-. that our countries con¬ 
front," the Prime Minister told 

“As a result or this meeting, 
the summit countries are 
pointed :n the right direction 
and the measures that will fol¬ 
low from the Individual com¬ 
mitment'. will help to create 
more jolts and more trade 
H-ithonl rekindling inflation.” 

The measures would rein¬ 
force each other. “Their total 
eOecl should thus be more than 

the sum of their parts," he 

Thu Tories scoffed at every 
line—and set about minimising 
the entire performance as well 
as the Prime Minister's per¬ 
sonal role. 

Mrs. Margaret Thatcher 
detected ramiilqr echoes of the 
optimism and unreality of 
previous summits in the Bonn 
declaration. Britain's most 
urgent task was to ereate more 
jobs, she said. What practical 
benefits would now emerge? 
Was it 1° be, as the Prime 
Minister's ejection campaign 
adviser had reported, a 2p cut 
in income lax this autumn? 

Mr. Callaghan was pained by 
such cynicism. Why did the 
Tory Irader persist In playing 
down Britain's share In suc¬ 
cessful international co-opera- 
lion he demanded. 

Previous summits had at 
least restrained any widespread 
move towards protectionism. 
Bonn's specific commitments 
promised more 
Mrs. Tbatcherfs personal 
attacks were too much, he said 
angrily. Especially, it seemed, 
after be had been content to 
confine any hint of praise for 
hfs own role to the rehearsals 
earlier this year with President 
Carter and Chancellor Schmidt 

Far from electioneering, the 
Prime Minister had gone ont 
of his way to stress that there 
could be no instant remedy for 
unemployment. The Bonn sum¬ 
mit would work no miracles 
and it would he . wrong and 
mischievous to suggest other¬ 

Mr. Callaghan gratefully 
accepted his due congratula¬ 

tions from Labour back¬ 
benchers—but became increas¬ 
ingly testy with scpelical 

Hr. David Crouch (C, 
Canterbury) tartly suggested 
that the Prime Minister’s time 
might have been better spent 
In seeking a Middle East solu¬ 
tion at Leeds Castle than in 
“ some small town in 

That slewed the Tories’ 
total lack of- proportion, Mr. 
Callaghan snapped. 

44 1 know the Opposition is 
nervous about the coming 
months,” he added as Mr. Ray 
Whitney <C., Wycombe) again 
referred slightingly to the 
meagreness of Britain's con¬ 
tribution to Bonn. “ What 
this country has done 'in 
recovering from the economic 

follies of the previous Con¬ 
servative Government is mueh 
admired overseas,” Mr. 
Callaghan declared 

Union opposition unfair, 
Conservatives complain 


But Mr. Norman Atkinson, 
the Left-wing HP for Totten¬ 
ham, scarcely helped to pro¬ 
mote such pre-election admira¬ 
tion at home. How was it 
possible for the heads of 
Government to deliver inter¬ 
nationally what they refused 
to deliver In their own 
countries? he demanded. 

Mr. Callaghan retorted that 
all had agreed to take prac¬ 
tical steps. The Tories 
chorused their scorn. And Mr. 
Callaghan rounded on them 
bitterly. “Don't you want to 
see a reduction in unemploy- 
. meat ? Don't you want to see 
wo rid trade increased? Why 

do yon sneer at these efforts? ” 

What benefits can we really 

UNION LEADERS were accused 
yesterday by senior Conservatives 
of conducting a phoney war with 
the Tories and talking of con¬ 
frontation" when there was none. 

Sir Keith Joseph, chief policy 
adviser, said there could be no 
■repeat of the Tories’ 1974 con¬ 
flict-with the miners, “because 
we do not propose to have a 
statutory incomes policy. 

Mr. James Prior, shadow 
Employment Secretary, accused 
some union leaders of speaking 
as party politicians, not as leaders 
of “great organisations whose 
membership is not particularly 
interested in party politics. 

Their pre-election counter¬ 
attack on what the party seems 
to see as the damaging public 
opinion legacy of 1074 appeared 
in the latest issue of a journal 

for Conservative trade unionists. 
The complaint has been heard 
before, but it has rarely been 
so deliberately expressed. 

Mr Prior named Mr. David 
B as nett, TUC chairman, and Mrs 
Marie Patterson, president of 
the Confederation of Smpbuud- 
ia« and Engineering Unions as. 
two who had forecast strife with 
the Conservatives. 


“The Conservative Party has 
worked with the unions in and 
out of government and will con¬ 
tinue to do so. lit private every 
trade union leader will admit 
there Is no reason why they 
Should not work perfectly satis¬ 
factorily with the Conservative 

Sir Keith said the Conserva¬ 

tives’ policies for lower taxes, 
less government spending and 
more jobs would appeal to trade 
unionists. "Reiteration of the 
word confrontation is a political 
device to distract the people of 
this country from the reality” 
he claimed. 

Thfc Conservative retaliation 
follows a series of warnings hy 
union leaders and conference 
delegates this summer that the 
Conservatives were inviting con¬ 
frontation by their industrial 
policies. Last week Mr. Sidney 
Weichell. of the National Uninn 
of Ratiwaymen, said his union 
would go “back to the jungle" 
of a pay free-for-all if The Con¬ 
servatives won. and there could 
be no social contract with them. 
He later said that did not 
mean the NUR would not work 
with the Tories. 

expect, Thatcher demands 

Print unions urged I Shipowners 

to keep agreements 

give pay 




THE RESULTS of tbc Bonn 
economic summit met with a 
sceptical response from Mrs. 
Marcarel Thatcher, the Conser¬ 
vative leader, when the Prime 
Mim«tor reported back to the 
Commons yesterday. 

Mrs. Thatcher detected a cer¬ 
tain similarity with previous 
suaiiiins in the wording and the 
optimism of the Bonn com¬ 
munique. She wondered whether 
t»n< indicated that there would 
jNo be a similaril.' in the lack 
of practical res-ulls. 

She pointed nut that the state¬ 
ment i ■wiled after last year's 
Downing Street meeting had con¬ 
tained phrases such as “our most 
urgent task is to create more 
jobs" and *‘\Ve commit our 
Governments to growth targets." 

Mr*. Thatcher asked Mr. 
Callaghan if he would now care 
io list the specific benefits which 
had flowed from the previous 

The Opposition leader was also 
suspicious of some of the brief¬ 
ing given to journalists after the 
Bonn meeting. She asked for 
clarification of a report which 
had appeared in the Sun. written 
hv the journalist who is to be 
Mr. Callaghan's adviser at the 
next election. This said that one 
of the results of the summit 
could be another twopence off 
income tax in an autumn budget. 

In rep!>. Mr. Callaghan main¬ 
tained that one of the benefits of 
the previous summits had been 
a negative one — namely that 
the member countries had not 
gone any further d own the road 
of protectionism. 

The mam practical benefit of 
!he Bonn summit was that indi¬ 
vidual countries had made spe¬ 
cific on mini intents and had gone 
on record much more completely 
and accurately than at previous 
summits ns In what they wore 
ready to do during th._» coining 
m«nlh-. The> had gone much 
further in this respect than at 
the Downing Street meeting. 

” Everyone realises that the 
situation is much more serious 
now that another 12 months have 
•-lapsed." he added. “Throughout 
tile world, tl ha-, got worse." 

Bui Mr Callaghan ducked the 
question about further income 

tax cuts. Blandly, he declared that 
he was not aware of the report 
in the Sun and he berated Mrs. 
Thatcher for bringing the per¬ 
sonalities of individual jour¬ 
nalists into (he argument. 

In his prepared statement, 
which was punctuated by scep¬ 
tical laughter from some Conser¬ 
vatives, Mr. Callaghan declared: 
'* As a result of this meeting, the 
summit countries are pointed in 
(he right direction. The measures 
that will fnllow from the in¬ 
dividual commitment* will help 
to create more jobs and more 
trade without rekindling in¬ 

He confirmed that on behalf 
of the UK he had undertaken to 
continue policies to contain 
inflation and improve still 
further the prospects for growth 
and employment. 

On international monetary 
policy, it was our view that 
implementing the measures out¬ 
lined in Bonn would help to 
bring ahoul a better pattern of 
world payment balances. This 
would lead (o greater stability of 
exchange rates. 

“ Monetary authorities will 
continue to intervene to counter 
disorderly conditions in the 
markets.” he declared. 

Summing up the meeting, he 
told the House: “It represents 
a combined attack on the 
economic problems that our 
countries confront. The measures 
on which we agreed will 
mutually reinforce each other. 
Their total effect should thus be 
more than the sura of their 

Exchanges about Bonn also 
occupied part of Prime Minister's 
question time when the Opposi¬ 
tion concentrated its attack on 
the latest unemployment figures 
released yesterday showing that 
the number of jobless bad risen 
above 1.5m again. 

The Prime Minister told his 
critics: “ I think what we did at 
Bono yesterday is going to help 
this throughout the world. But 
it would be wrong and 
mischievous of anyone to 
represent that the level of 
unemployment throughout the 
industrialised world, or the UK, 
is going to come down fast. 

“ It is not, and that is the 

reason we have to keep the 
temporary employment subsidies 
and other job-creating measures 
that we have." 

Mr. Callaghan told one of his 
Conservative questioners, Mr. 
Andrew MacKay (Stechford) " If 
you happen to be-here after the 
next general election, you will 
find that unemployment will be 
going down steadily.” 

Mr. Frank AUaun (Lab, Sal¬ 
ford E) suggested that since it 
was agreed at Bonn to stimulate 
the Western economies, public 
spending restrictions on bousing, 
health, social services and educa¬ 
tion could be relaxed. 

But the Prime Minister told 
him firmly that there could be no 
such increases until they were 
earned. “ So far, we have not 
earned them." 

Following Mr. Callaghan's 
statement, there was a whiff of 
scepticism from Mr. John 
Pardoe. Liberal economics 
spokesman, who welcomed the 
intention to increase world 
demand. “ particularly if that 
comes about/’ 

Mr. Pardoe thought the 
greatest barrier to increasing 
demand in Britain was the 
domestic rate of inflation. 

He asked the Prime Minister 
about the Government White 
Paper on the next stage of in¬ 
comes policy, which he predicted 
would be published on Friday. 
Would this ensure that our rate 
of inflation for next year would 
be at, or below, the average of 
other OECD countries? 

The Prime Minister agreed 
that inflation was bur biggest 
handicap. We bad reduced it sub¬ 
stantially and would continue 
with the policies which had 
brought success so far. "Our big¬ 
gest problem is the relative 
failure of industry to be more 
productive. If we can raise the 
level of productivity, we shall 
get a faster rate of growth." 

A leading Left-winger, Mr. 
Norman Atkinson (Lab., Totten¬ 
ham) was also sceptical. He 
argued that the results of Bonn, 
like those of earlier summits, 
were contradictory.. The other 
six heads of Government were 
leaders of free market econ¬ 

omies. he said, and determined 
to practise non-interventionist 
policies in their own countries. 

“How is it possible for them 
to deliver internationally what 
they refuse to deliver domestic¬ 
ally?" he asked. 

But the Prime Minister said 
that Mr. Atkinson underestima¬ 
ted the degree of control that 
other Governments had over 
their fiscal and monetary poli¬ 

Germany, for instance, could 
take measures through reduction 
in taxation or increases in public 
spending. The Japanese Govern¬ 
ment intended to do the same. 
President Carter would take 
action on oil prices. 

“ All of these are practical 
steps which were missing in 
previous declarations,” Mr. 
Callaghan insisted. 

This brought scornful laughter 
from the Tories, but Mr. 
Callaghan asked them angrily: 
“ Don’t you want to see a 
reduction in unemployment? 
Don’t you want to. see world 
trade Increase? Then why do you 
sneer at these efforts?" 

Hijack measures ‘a big deterrent’ 

THE MEASURES agreed at 
Bonn to combat terrorist 
hijacking of airliners will come 
into operation immediately, Mr. 
Callaghan told the Commons 

Mrs. Margaret Thatcher, 
Leader of the Opposition, 
emphasised that vigorous, steps 
must be taken to extend the new 

policy to countries throughout 
the world. 

The Prime Minister said the 
new measures would be effective 
anyway, as the seven countries 
at the summit controlled 
between them over 50 per cent 
of air traffic. This would be a 
significant deterrent. 

However, the Government 

intended to approach other 
countries through diplomatic 
channels to ask them to support 
the policy. 

The new scheme means that 
countries will halt flights to and 
from states which refuse extra¬ 
dition for prosecution of 
hijackers or who do not return 
the aircraft involved. 

agreements with managements 
cannot escape total responsibility 
for ensuring that their members 
honour the agreements, Sir 
Richard Marsh, chairman of the 1 
Newspaper Publishers Associa¬ 
tion, said lasE night. 

He suggested that unions 
must if necessary be prepared 
to withdraw membership from 
members who acted in defiance 
of agreed dispute procedures. 

Describing industrial disrup¬ 
tion in Fleet Street as “intoler¬ 
able,” Sir Richard said that 
hardly a night passed without at 
least one newspaper losing a 
large proportion of its planned 
production. Lost copies this year 
bad already run into millions. 

Recent ’years had seen a 
massive increase in trade union 
power which had been matched 
by statute after statute giving 
increased protection to union 
members. The wheel had 
turned full circle, and organised 
labour was more. powerful than 
management, he said. 

" "Whether this development be 
good or bad it is a fact, and it 
imposes . very considerable 
responsibilities upon the union 
leadership." Sir Richard told the 
annual Newsboy-Newsgirf of the 
Year dinner in London. 

Industrial “anarchy." a word 
Sir Richard has used before to 
describe industrial relations 
problems in . Fleet • Street, 
presented as great a threat to 
trade union members as it did 
to the industries which employed 

" No experienced industrialist 
underestimates the size of this 
; problem for union leaders. They 
have only one sanction which 

they can use to control their 
members, and that is the power 
to withhold union membership 
from those who break union 
rules or union agreements." 

The most obvious example of 
the problem was where groups of 
union members took industrial 
action in total defiance of 
procedures agreed between 
management and unions. 

Union leaders could not escape 
total responsibility for seeing 
that such agreements were 
honoured, and if tbeir members 
could not accept the responsi¬ 
bility of union membership they 
should not be allowed to enjoy 
the benefits. 

Some of the .roost highly 
respected newspapers in the 
world had their very existence 
threatened by financial problems, 
said Sir Richard. A major 
element in the problems of Fleet 
Street was the frequent failure 
of trade unionists to use 
procedures for settlement of 

The winner of the Newsboy- 
Newsgiri award was Mark 
Riding. IS, of Bramhall, Stock- 
port, Cheshire, at Bramhall 
High School, who received ■ a 
total of £500 and a family holiday 
in Gibraltar. His employer is 
Mr. J. Bruce, newsagent, of 
Bridge Lane, Bramhall. 

The runner-up was Caroline 
Rawson. IS, of Claughton. 
Birkenhead, Merseyside, at! 
Birkenhead • High- School, who j 
received cheques worth £225. 

The third prize, of £150 went 
to Andrew White of Belfast, a 
student at Belfast Methodist 

The prizes were presented by 
Mr. Peter Parker, chairman. of 
British Rail Board. 

By Pauline Clark, Labour Staff - 

victims of the world recession in 
shipping, will be tied to what 
they can afford to pay in wages 
rises rather than to pay ceilings 
stipulated by the Government, 
Mr. Graham Turnbull, chairman 
of the industrial relations policy 
committee of the General Coun¬ 
cil of British Shipping, said 

In -a clear warning to unions, 
which within three months will 
be formulating pay claims for 
some 44,000 officers and cadets 
and 35,000 ratings in the British 
merchant fleets, Mr. Turnbull 
told a Press briefing in London 
on British.. Shipping that the 
tonnage surplus arising out of 
the shipbuilding boom of the 
early 1970s and the fail in world 
trade since then was acute and 
“will be with us well into the 

Those considerations and (he 
need for British ships :to stay 
competitive would he uppermost 
in employers’ minds in the next- 
wage negotiations. 

Mr. Eric Nevin, general secre¬ 
tary of the Merchant Navy and 
Airline’ Officers*. Association, 
replied last night, that his meoi: 
hers would expect a 10 per cent 
deal like everyone else under 
Phase Three of Government pay 

.He said, that although officers 
received an 18 per cent increase 
last November, that was the 
result' of a productivity deal 
negotiated on top of a Phase Two 
supplement The officers, whoso 
original settlement date was in 
June, would be due for a Phase 
Three rise in November. 

Tough law 
urged on 
price rings 

Toiy anti-EEC survey 
finds growing hostility 


Shop union drive for 
£55 and 35 hours 

Mr. Nevin-attacked shipowners 
for criticising the. International 
Transport Workers* Federation's 
attempts to harmonise EEC 
wages on ships. Such criticism, 
he-said, did not help to eliminate 
substandard ships and exploita¬ 
tion .of. seafarers. 

MPs reject Millan’s 
abortion law advice 


AGXIXST THE advice of the 
iInvent:iu*nl. the Commons last 
ninlii ciiilnf-ed the view of the 
il.ii:-«* ui l.iirds. and removed 
iv-ijniiiNilidity Tuf abortion law 
from i lie Scud ish Assembly. 

In .1 irer vnic. a motion tn 
di>.i"ive with the Lords amend- 
:nen: in the Scotland Bill, 
liv-lc-i::: 4 a hurt Kill from the 
m-IkhIiiIc devolved matters, defeated 1*\ 2S2 voles to 
I-IS. a mai'inly ,if 134. 

Some Ministers went into the 
lob!ij. willi Opposition MPs to 
reji-ci the recommendation of 
Mr. Bn.icii Mi) lan. Scottish 
Secretary, that, as a matter of 
principle, abortion, along with 
all ether tn.itiers relating tn the 
National Health Service, should 
be left iriihin Ili#» powers of the 
Scottish Assembly. 

Mr. Millan stressed The 
Government'.- anxiety not tu 
iicroiiic embroiled in the con¬ 
tinuing controversy over ihe 

merits of Hie abortion law and 
till.- k.i* reflected in the decision 
-o permit n free vote. 

He look pis .stand on the 
principle that a Scottish 
Assembly. mice established, 
should lie free to change the 
existing ljw on abortion if it 
wished In (in so. 

He discounted suggestions 
lhat a more restrictive law in 
Scotland could create problems 
• iir the National Health Service 
pi England with Scottish women 
headin'-: smith to secure the 
Termination of unwanted 

.\nj problems which did arise, 
lie suggested, were likely to 
concern only ihc private sector. 

Tlu- Scottish Secretary pointed 

out that in practice there was 
already a divergence between 
the operation of the abortion- 
law in Scotland and the rest of 
the United Kingdom. 

This was illustrated by the fact 
that in 1977 there were 133,000 
abortions in England and Wales, 
of which more than 80.000 were 
carried out by the private sec¬ 
tor. In Scotland, the total num¬ 
ber of abortions was 7.2S3 of 
which only 195 took place in 
the private sector. 

The total number of non-resi¬ 
dents who obtained abortions in 
Scotland was IS. compared with 
30.762 in England and Wales. 

Mr. Millan contended that there 
was a "good deal of myth-making” 
about the whole issue of abortion. 
“I believe lhaf. in principle. Ihis 
is a matter which the assembly 
should decide for itself," he 

Taking a completely contrary- 
view, Mr. Teddy Taylor, shadow 
Scottish Secretary, argued that 
there was a very real possibility 
that a difference in the abortion 
law as between Scotland and 
the rest of the UK would create 
a big problem. 

He saw the likelihood of a 
major soc iai problem developing 
through cross-border traffic in 
abortions and recalled the 
anxieties caused by- the large 

number of continental women 
who had crossed the Channel to 
secure abortions not available to 
them in their own countries. 

Mr. Taylor maintained lhat the 
right answer was to moke pro¬ 
vision for having a uniform law 
on abortion which applied 
throughout the UK. 

LAWS SHOULD be tougher 
against price fixers -who are 
“ ripping off the public sector," 
Mr. Jeff Rooker (Lab, Perry Bar) 
urged in the Commons yester¬ 

He gained a formal first read¬ 
ing for a Bill providing Increased 
powers for the Director General 
of Fair Trading to look into 
industries where he suspected 
that price rings or other restric¬ 
tive practices were operating. 
Voting was 209-147. majority 62. 

Mr. Rooker complained that 
penalties were more severe 
against shoplifters than against 
those who rigged local govern¬ 
ment contracts. 

Objecting to the Bill, Mr. 
Nicholas Ridley (C. Cirencester 
and Tewkesbury) said that the 
same rules should appply to 
restrictive practices in trade 
unions and nationalised industry 

tive voters appear to have 
hardened sharply against the 
Common Market, according to a 
new opinion poll which reaffirms 
that supporters of continued 
British membership are in a 
distinct minority. 

The survey, commissioned 
privately by prominent Tory 
anti-Marketeers and carried out 
by NOP Market Research, sug¬ 
gests that the electorate, as a 
whole, is firmly against British 
membership by a 52-33 margin, 
a proportion little changed from 
last year, but a complete reversal' 
of the 1975 referendum result. 

The findings underline the 
reasons for the increasingly 
pragmatic and hard - nosed 

approach to the EEC adopted 
by leading Conservative spokes¬ 
men, taking their cue from Mrs. 
Margaret Thatcher herself. 

Of the major parties, hostility 
to the Community is most pro¬ 
nounced among Labour voters, 
by a 57-30 margin. But opposi¬ 
tion inside the Tory Party has 
hardened noticeably from a 45-45 
tie in July, 1977, to a 5042 
majority to-day, who say that if 
a referendum were held now. 
they would vote for pulling out. 

The survey was carried out in 
June among 1,892 interviewees. 
Hostility was strongest in the 
North and in Scotland, among 
those over 35 years of age, and 
among unskilled, clerical and 
manual workers. 


Mr. Turnbull said the pressure 
for harrsLQnisation did not make 
economic sense. 

450,000 nf Britain's shop workers 
are to campaign for a minimum 
£55 basic wage for a 35-hour 

Lord Allen of Faliowfield, 
general secretary of the Union 
of Shop, Distributive and Allied 
Workers and chairman of the 
TUC economic committee, 
described the new target as a 
" reasonable and responsible 
demand for men and women 
who serve the shopping public.” 

The union's decision to demand 
higher wages for the low paid 
among its members and a shorter 
working, week follows current 

thinking among TUC leaders in 
talks witb the Government on 
economic and pay priorities to 
follow the expiry this month of 
the phase three pay policy. 

The union, Britain’s sixth 
largest, with membership in 
retail and wholesale distribution, 
food and chemical process in¬ 
dustries, catering-, and hairdress¬ 
ing, is campaigning through 
advertisements this week in! 
national newspapers. 

It hopes to alert its members 
and negotiators as well as 
employers and non-union staff to 
the improvements it will be seek¬ 

Tractor plant 
strike over 


ABOUT 1.100 workers at the 
Bradford factory bf the Inter¬ 
national - Harvester Company 
staged a 24-hour strike yesterday 
as further redundancies were 

Minister attacks Kent Scottish TUC to hold 

Chilean engines 
return ‘will 

voucher scheme 

conference on jobless 

not be stopped’ 

THE PRD IE Minister said yes¬ 
terday that the Government 
would not stop in to prevent the 
return of four Rolls-Royce aero¬ 
engines to their owners, the 
Chilean Government. 

Mr. Callaghan was replying to 
Mr. Phiilip Whitehead (Lab. 
Derby N.L who said in the 
Commons that any decision to 
return the engines would anger 
trade unionists. 

The Avon engines were sent 
to Britain for overhaul in 1973, 
but their removal from storage 
at East Kilbride has been pre¬ 
vented bv union action since 

The Prime Minister told Mr. 
Whitehead that a decision to 
return the engines was not a 
matter for the Cabinet. “The 
engines were sent here for repair 
and" now they are due to be 
returned as the repair has been 
paid for." he said. 

PLANS BY the Conservative- 
controlled Kent County Council 
to introduce a voucher educa¬ 
tion scheme were criticised by 
Mrs. Shirley Williams, Education 
Secretary, and Left wing Labour 
MPs in the Commons yesterday. 

Mrs. Williams warned that a 
national voueber scheme could 
cost between £400m and £500m. 
“I cannot believe this is a pro¬ 
per use of public monev," s h e 

“ If we care about the stan¬ 
dards of education nf all our 
children the way to spend money 
is on more teachers, more books 
and better buildings and not on 
ludicrous administrative expen¬ 

She added: “We are going to 
see the diversion of public 
money towards the education of 
a small minority and away from 
the vast bulk of our children." 

Mr. Jeff Rooker (Lab.. Perry 
Barj described the Kent scheme 
as an example of the Tories' 
corporate greed and a misuse of 
the concepts of freedom of 
choice and equality of oppor¬ 

Mr. John Evans (Lab., 
Newton) claimed it was an 
example of the selfish and 
socially divisive policies of the 

Mr. Bryan Davies (Lob., 
Enfield N.) said it illustrated 
that the Tories were in favour 
of privileged education so long 
as it -was only open to the 
wealthy-, and subsidised by tax¬ 
payers and ratepayers. 

But a Tory education spokes¬ 
man, Dr. Rhodes Boy son. praised 
the “radical thinking" of Kent 
County Council in introducing a 
scheme which increased paren¬ 
tal choice and caused hysteria in 
half the Labour Party. 

Mr. Dennis Skinner (Lab., 
Bolsoven suggested that if the 
Kent scheme went ahead, the 
districr auditor should look 
closely at the large sums of rate¬ 
payers' and taxpayers’ money 
being spent. 

He wondered if Kent coun¬ 
cillors would be disqualified, as 
in the case of Clay Cross coun¬ 
cillors, “who took certain local 
decisions and were dealt with in 
that manner." 

THE Scottish TUC Is to call a 
delegate conference on unem¬ 
ployment to increase pressure 
for a shorter working week, in 
the'run-up to. a possible October 
General Election. 

Reacting to yesterday's 
Department oF Employment 
figures showing that Scottish un¬ 
employment rose last month for 
the first time since February, the 
STUC said the one-day Glasgow 
conference would examine the 
effect a 35-hour week would have 
in reducing the unacceptably 
high jobless total. 

Mr. Douglas Harrison, assistant 
general secretary, said the possi¬ 

bility of an October election had 
been one factor in deciding to; 
hold the conference .on Septem-, 
ber 29 but that concern over 
rising Scottish unemployment 
provoked the STUC to bold the 
conference as soon as possible. 

The unemployment register in 
Scotland rose by more than 4,700 
since June to a total of 191,906, 
including 26,935 school leavers, 
representing 8.7 per cent of all 

The number of notified vacan¬ 
cies wa< down to 21.900 and both 
STUC and CBr in Scotland 
agreed that the outlook for the; 
rest of the'year was gloomy. 

Monsanto site workers walk out 

In April, 250 employees lost 
their jobs after Turkey cancelled 
an order for 8,000 tractors a year 
owing to foreign exchange prob¬ 

Now a further 174 workers 
from the labour, force of 1.377 at 
Bradford and 116 at Doncaster 
will be made redundant in three 

Mr. Roland Long, . the 
company’s industrial relations 
manager at Bradford, said yester¬ 
day that there were several 
reasons for the need to cut the 
labour force further. 

These included a recent strike 
of clerical workers, at the Don¬ 
caster plants, a strike at a key 
supplier - of components and 
delay in the installation of a new 
assembly line at Doncaster-wbich 
affected sales. 

The company bojtfd to achieve 
the labour reduction by volun¬ 
tary redundancies and voluntary 
early retirements, but workers at 
Bradford were concerned about 
the future' of the plant.- • 

'.. Mr. . Laurence Abbott,.. TJK 
managing director, had agreed-tn 
address a meeting of Bradford 
workers within a few days to 
allay their fears. 

THE £20Om Monsanto chemical 
construction site at Seal Sands, 
Cleveland, came to a standstill 
yesterday because 1,000 workers 
walked out over fears about 
safely. At the company’s exist¬ 
ing chemical plant, next door, 45 
process workers have been laid 
off. including men trained in 
safety and rescue work. . 

A representative of the con¬ 
struction workers said they 
would not return until the 
process workers were taken 
back. -He added that there were 
large 'amounts of propylene, 
ammonia, acrylonitrile and other 
hazardous chemicals on the site, 
and they did not consider it safe. 

Dockyard wives 

in pay protest 

Premier sends greetings to increase 

Family benefit Press reporls ‘ misleadi[ «’ 

iViF. MINISTER sent 
greeting? from the 
bnx in the Commons 
to Mr. Nelson Mandela. 
k u*annalist leader, 
South A Trie. l. 
an l.cs-tor tLab. Eton 
(.lacmcd Ibal Smith 
ouse ip London, had 

refused to accept greetings on 
Mr. Mandela’s ooth birthday sent 
by members of the Labour and 
Liberal parties and trade 

Mr. Ca Ha chan said he would 
like iu take the opportunity on 
behalf a? the Government to 

send him birthday greetings 
from the Despatch box. 

AN INCREASE in Family In¬ 
come Supplement of £1.10 a 
week for most families will come 
into operation in November. Mr. 
Stan Orme, Minister for Social 
Security, said in a Commons 
written reply yesterday. This 
will be additional to the in¬ 
crease in child benefit coming 
into force in r he same month, he 
told MPs, 

cerned at the misleading impres¬ 
sion which the Press has given 
to the recent report on charges 
in sentencing for criminal 
offences. Lord Wells-Pestell said 
in the Lords yesterday. 

He agreed with Lord Allen or 
Abbeydale that it was ludicrous 
to describe tbe report by the 
Advisory Council on the Penal 
System as "A rapists* charter," as 
one newspaper had called iL 

Lord Wells-Pestell said: “The 
Government hopes that, in due 
course, the informed opinlohs of 
those who have read the report 
will carry more weight with the 
public than the misrepresenta¬ 
tions of those who clearly have 

He added that there would be 
oo changes until there had been 
consultations witb people who 1 
were In a position to advise 1 
the Government, including 

Blacking ‘cost £900,000’ 

£900,000 in business turnover 
because of a blacking campaign 
by two print unions, a High 
Court judge was told yesterday. 
To ensure their Own survival 
customers broke contracts with 
Huthwaite Print, said Mr. 
Anthony Scrivener, QC, for the 

The company, of Sutton-in- 
Ashfield, Notts., is suing Mr. 
Joe- Wade, general secretary* of 

the National Graphical Associa¬ 
tion, and Mr. Edward Martin, 
national organiser of the Society 
of Lithographic Artists, De¬ 
signers, Engravers and Process 
Workers, for court orders to 
lift the blacking. 

The company claims that it is 
unfairly blacked as it is not part 
oE the T. Bailey Foreman group 
of companies Involved in a 
recognition dispute .with the 

PORTSMOUTH dockyard 

workers* wives gathered outside 
10 Downing Street yesterday W 
complain to Mr; Callaghan about 
their husbands’ pay. 

“We plan to stay here and 
siog until we see . him.”, said 
their organiser, Mrs: Patricia 
S tec fun an. “ Portsmouth is. Mr.. 
Callaghan’s -old- home town—he 
has known- poverty himself and 
used to go to the soup kitchen." 

Earlier, the wives delivered 
two letters of protest at Number 
10 . 

The women, all bf whom work 
to help pay and feed 
tbe family, said their husbands 
were paid. less than half the 
wages they would, earn elsewhere 
for skilled work. Mrs. stechinajj 
said her husband's pay was £32 
a .week. -v 



.o 1 - 

ni'.r-i : 


Financial Times Wednesday ‘July 19 1978. ■ • 



Wednesday July 19 1978 


lital Market 

" 111 Pi Mi ii. 

Continuing balance of payments problems coupled with a sluggish economy have posed 
problems for the Dutch. But inflation is under control and the coalition Government 
is now implementing schemes for promoting investment and cutting public spending. 


E Activity 
at a 

By Charles Batchelor 



future c»f the Dutch economy 
have become gloomier in recent 
months. Apart frmn the con¬ 
siderable success in bringing 
down the rate of inflation, most 
other indicators show a bleak 
picture. On the credit side, 
however, the seven-month old 
Centre-Right Government is 
making progress with urgently 
needed programmes which were 
held up by the stalemate which 
paralysed political and economic 
decision-making for most of 
1977. In the first parliamentary 
session of the new Government 
the Prime Minister. Mr. Dries 
van Agt. seems to have estab¬ 
lished firm control over his 
Christian Democrat — Liberal 

The rate of economic growth 
over the next few years is now 
forecast at only three per cent 
compared with previous assump¬ 
tions of 3} per cent. Economics 
Minister Gijs van Aardenne told 
parliament recently. This means 
even greater efforts are needed 
to achieve economic goals. 
Happily the repeated warnings 
of the central bank president. 
Dr. Jelle Zijlstra, of the dangers 
of inflation have had their 
effect on policy-making and on 
public expectations. Holland is 
in the first division of the 
European inflation league, with 
official forecasts putting the 
rate at 4-4-} per cent in 1978 
after fit per cent last year. The 
Government wants Holland to 
match its largest trading 
partner, West Germany,- and a 
target of 2-3 per cent has been 
set for 1981. 

The firmness of the guilder 
and the high production costs 
mean the picture for exporters 
is less favourable. The 
country’s share of world trade 
will decline further this- year 
if exports increase by the 
expected three per’ cent in 
volume against a background of 
a five per cent rise in world 
trade. The visible trade deficit 
was FI l.lbn ($493m> in the 
first four months of 1978 ■— 
better than the FI l.fibn deficit 
at the same lime last year but 
still not encouraging. - 

The balance of payments 
current account showed %. deficit 
of FI 1.02bn in the first quarter 
of the year compared with a 

surplus in the preceding 
quarter of FI 640m and the first 
1977 quarter surplus of FI 400m. 
The most worrying component 
of this decline was the move 
into deficit of invisible trade 
for the first time since the 
autumn of 1975. The Central 
Planning Bureau has forecast a 
surplus of FI 2.5bn for the year 
as a whole. Prospects for 
achieving this on the evidence 
so far are not good. 

After frustrating months of 
delay while a coalition Govern¬ 
ment was put together last year, 
a revised scheme for promoting 
investment has finally been 
steered through Parliament 


The new investment account 
is expected to pump FI 13bn 
<$5.Sbn) into industry over the 
next four years. This is FI 8bn 
more than.the existing invest¬ 
ment allowance and accelerated 
depreciation facilities would 
have provided. The new 
scheme has the additional ad¬ 
vantage of making funds avail¬ 
able to loss-making companies. 

The second major programme 
which is now finally making 
progress through Parliament 
aims to cut public spending 
estimates by FI lObn over the 
next three years. Every 
Government department has 
had to make cuts with the ex¬ 
ception of defence. Public sec¬ 
tor salaries will be pegged so 
that they rise 1 per cent less 
than wages in the private sec¬ 
tor a year. Social security 

payments will also be held down 
to correct distortions which 
have led to a relative fall in 
income for many lower wage 
earners as opposed to recipients 
of disability and other allow¬ 
ances over the past few years. 
Health service spending will be 
restrained and patients will 
have to pay the first part of 
hospital bills and doctors' fees. 

This programme, which Mill 
be debated when Parliament 
resumes at the end of August, 
is intended to switch fluids into 
the private sector and reduce 
unemployment to 150,000 by 
1981. There are at present 
200,000 unemployed, and with¬ 
out these cuts this figure would 
rise to 255,000-280,000 in 1982. 
It is also intended to boost 
company profits. 

Despite these cuts in public 
spending, prospects for a reduc¬ 
tion in the Government’s 
financing deficit are not good. 
The target of a deficit equi¬ 
valent to 4-5 per cent of 
national income will not now be 
achieved until 1982, and the 
figure - is then likely to be 
nearer 5 than 4 per cent In 
the intervening period the 
deficit will be even higher, and 
it is expected to rise to six per 
cent next year from about 5} 
per cent in 1978. The Govern¬ 
ment does not expect to be able 
to borrow more than 41 per 
cent on the public and private 
capital markets. Tbe placing, 
of sis or seven Government 
loans on the public market and 
the State's already substantial 
borrowings on the private mar¬ 

ket represent the limits of the 
Government's access to these 
funds. Further extension would 
push other borrowers, includ¬ 
ing the local authorities, out of 
the market 

The Government will there¬ 
fore have to exceed its long¬ 
term limits on monetary financ¬ 
ing in the short term. This 
form of financing—the placing 
of Treasury bills and drawing 
on the Treasury account at the 
central bank—is inflationary 
and poses risks for the Govern¬ 
ment's monetary measures. But 
the risks Mill have to be 
accepted, it concludes in its 
policy document. 

Tbe prolonged wrangling as 
the political parties attempted 
to form a coalition government 
last year put a nine-month de¬ 
lay on effective action to bring 
the economy under tighter con¬ 
trol. At first sight the coalition 
which emerged last December 
was not in a strong position. 

The exclusion from the 
Government of the Labour 
Party, the largest in Parlia¬ 
ment, seemed to indicate that 
the new coalition might have a 
Abort and difficult life. The 
Christian Democrats and the 
liberals have only a four-seat 
majority in the 150-seat lower 
house. The first months of the 
new government showed that 
Mr. van Agt would have more 
trouble patching up difficulties 
within his own Christian 
Democrat Party than in weld¬ 
ing the Christian Democrats 
and the Liberals into a stable 

coalition. But he finished his 
first parliamentary session on a 
surprisingly confident note, 
overcoming a revolt within his 
own party over a plan to export 
uranium to Brazil and securing 
agreement from his ministers 
for tbe public spending cuts. 
Despite the growing popularity 
of the Christian Democrats at 
the polls, the powerful FNV 
trade union federation has 
expressed growing unease at 
Government policies. The test 
of the Government's skill will 
come later this year when 
negotiations for the 1979 wage 
round begin. 

The proposal for an “ excess ” 
profit sharing bill continues its 
unhappy way through the 
Government machine. The pre¬ 
vious Government's radical pro¬ 
posals have been considerably 
modified >in the process although 
it still finds little favour with 
Dutch or foreign businessmen. 

The VAD levy has been split 
into two parts. Companies will 
pay 12 per cent of “ excess" 
profits into a fund managed 
largely by the unions to 
improve pensions, while 12 per 
cent will go to the workforce 
of the profit-making company. 
The two parts together will 
lead to a higher rate of VAD 
than was proposed by the pre¬ 
vious Government It had set 
VAD at 20 per cent in the first 
year—1977—rising one per 
cent a year for four years. But 
the collective part of VAD will 
now be limited to 3 per cent of 
fiscal profit and the individual 

part to 3 per cent of an 
employees' normal wages, so 
many firms will pay less than 
24 per cent 


VAD will still be levied after 
companies have been allowed a 
certain return on capital, com¬ 
prising the yield on a packet of 
State bonds and a 3 per cent 
risk premium (2 per cent under 
previous proposals). Two 
important changes are that 
companies may count existing 
profit sharing sell ernes towards 
VAD and they can set the 
individual part against corpora¬ 
tion tax. VAD is the Govern¬ 
ment's part of a deal with the 
unions under which they 
promised wage moderation. The 
unions claim, with some justifi¬ 
cation, that they have kept 
their side of the bargain. 

Despite the worsening of the 
Dutch balance of payments posi¬ 
tion and signs of a further 
decline, the guilder has 
remained firm on the foreign 
exchanges. The sluggish state of 
the economy means that the 
Government and the banks 
should have little trouble in 
raising funds on the capital 
market. The government has a 
total financing requirement of 
FllS.Bbn f$6.1bn) in 197S, 
while the banks are increasingly 
borrowing long term- funds to 
finance lending under the 
central bank's credit curbs. 
These curbs impose limits on 
lending which is funded by 

short-term borrowings. Pros¬ 
pects of a further increase in 
the Government borrowing re¬ 
quirement next year may sup¬ 
port interest rate levels 
although the decline in infiation 
will exert downward pressure. 
Money market rates have eased 
in recent months but the decline 
has been less than was at first 
expected. Tax payments are 
expected to exert upward 
pressure in the autumn. 

Bankers are watching the 
impact of the credit curbs 
closely and will hold further 
talks with the central bank in 
September to see if any modifi¬ 
cations are needed in the period 
up to March. The banks may 
increase lending which is not 
covered by long term borrowing 
by nnly 8 per cent in the 12 
months to March. This is a 
lower rate than was previously 
set. but banks can now consider 
savings and time deposits of 
two years and more as long¬ 
term borrowings. 

The central bank views the 
present regime as an easing of 
the curbs but many of the 
banks see it as more onerous, 
depending on the structure of 
their balance sheet As long as 
economic activity remains at a 
low level — and the signs are 
that there will be no marked 
improvement in the short term 
— the capital market should 
have no problem in financing 
the sizeable Government deficit. 
When the spending cuts and the 
investment programme begin tn 
take effect the competition for 
funds will increase. 

1977 I 

Operating result 26.0 

Net profit 10.7 

Profit per share 14.62 

1978 I 

Operating result • 2S.0 

Net profit 13.2 

Profit per share 18.02 

Ditto after payment 

of 10% stock dividend 

in April 1978. 16.38 










Dutch imports: Dfl.111,920million. 
Dutch exports: Dfl. 10^197 million. 

Well be ^ 
showing fj 

a lot more in 
nine months. 

Following on from a very successful! year,, our 1978 first quarter results have 
once again shown a very healthy growth in operating result and profit. 

When you’re considering any real estate activities in the Netherlands, the 
Westland/Utrecht Hypotheekbank can now help you more than.ever with project 
development and finance. 

With this sort of start to 1978, we’re really looking forward to the next nine months. 
Westland/Utrecht Hypotheekbank.The largest mortgage bank in the Netherlands. 




In our business bouquet is a flower for everybody. 
As long asyou use the inside bank: NMB Bank. 

Holland’s prosperity proves to be a 
fertile soil for any kind of business. Just a 
glance at Dutch trade shows that it is con- 
sidewbly more important than it sounds. 

With the largest, busiest port in the 
world* H5 vast transit trade and multi¬ 
billion imports and exports, Holland— 
although a small country-plays a signifi¬ 
cant roleinworid economy. 

- So when dealing with Holland, deal 
that knows Holland best: 
the NMB Bank. . 

Amsterdam, Sarphatisbaat 1, td.020-263131 

Though NMB ranks number three 
among commercial banks, it is number 
one with thousands of medium-sized and 
larger companies that form the backbone 
of Dutch business. 

Because NMB finances a consider¬ 
able amount of rheir business, it has 
gained an expert knowledge of inter¬ 
national trade. 

So, the nextiime you deal with 
Holland, turn to the NMB Bank and turn 
yourself into-an insider. 

NMB Bank. P.O.Box !SOO.Amsterdam, 
ttlcphouc-.. c:o-S-J39IU,td«: 11402 iunb nl. NMB Bank is 
reproenlcd in New York. Silo Pmto and Beirut and has a 
branch in Curasao In addition wro*n, Finance 
Omp-inv and a Trust Company >n Curasao,Netherlands 
AjiiiIIc: In Zurich NMB tSchwein A-C is at your service. Ay 
..a ru-tv.bc: ot the Inm-Alpha Group ol Banks we have joint 
tepren. mauve alfices in Sao Paulo. Teheran. Singapore, 
Hor-v. Kone and Tokyo. Balance sheet unal a:. at Jl-12-1977 
DR 27 million. 


Worldwide banking service 
from the Japanetherlands. 

Financial' Times Wednesday 


euro currency finance 
trade finance 
term loans 



A wholly owned subsidiary 
of the T okai Bank ltd., Japan 
Office: Keizersgracht 431 
pnone: 020/2396 25 - telex 12606 


The Tokai Bank Ltd. head-office: 

Nagoya, Japan. 

Overseas oflices: London, Frankfurt, Paris, 

New York, Los Angeles. Sao Paolo, Mexico City, 
Sydney, Hongkong, Jakarta, Singapore, Teheran. 

r/., . .. ■ • .■ %■ 
. ■; $''*1 v - 
* ' ...* ■' :• \ 

‘./nnit v* 

The headquarters of the AmsterdamrRotterdam Bank in Amsterdam. 

Banks’ margins 

Assets, Sept 30: 

Cash & Banks 
Loans & Discounts 

Liabilities, Sept. 30: 

Deposits, & c. 
Profit Balance 





























H. Albert de Bary&Co. N.V. 

448 - 456 Herengracht, Amsterdam, The Netherlands, 
phone (020) 213312, telex 12029 

Rotterdam Branche: 212 Westblaak, phone (010) 144311, telex 22608 

IN COMMON with most of the 
world's major banks, the big 
Dutch banks are having to face 
up. to sluggish domestic demand 
for funds and an exceptional 
squeeze on their international 
margins. As if this was not bad 
enough there is the- threat of 
a potential new competitor in 
the form of the planned state- 
owned Post Office Bank, which 
will result from the merger of 
the existing Postal Giro system 
and the State Postal Savings 
Bank. If successful, the new 
bank will have a nationwide 
network of 2,500 or so branches, 
which is considerably larger 
than the 2,000 odd branches 
now operated by Algemene 
Bank Nederland, Amro Bank, 
and Nederlandsche•'Midden-- 
etandsbank (The “Big Three"). 

Uniike the British banks, 
which have the market mostly 
to themselves. Dutch com¬ 
mercial banks already face 
fierce competition from the 
3,130 branches of the agricul¬ 
tural cooperative banks which 
are affiliated to the Co-operative 
Centraie Raiffeisen-Boerenleen- 
bank (Rabobank; for short) and 
the ■ 2,100 branches of the 
general savings banks. Both 
groups of banks play an im¬ 
portant part ' in providing 
housing finance, something 
which is almost the total pre¬ 
serve of the building societies 
in England. The existing Postal 

Savings Bank has already 
started granting home and per¬ 
sonal loans, and the feeling is 
that if its services are extended, 
as the Government intends, it 
could lead to unfair com¬ 
petition. As it is, the Dutch com¬ 
mercial banks'are resigned to 
the blurring of edges between 
the various parts of the finan¬ 
cial community. Both the 
savings banks and the co¬ 
operative Rabobank, which in 
terms as assets of $26.8bn is 
the second largest bank in the 
Netherlands, are encroaching 
on the commercial bank's terri¬ 
tory. Rabobank, for instance, 
has recently been expanding 
its international business and 
taken a 25 per cent stake in 
one of the oldest Dutch mer¬ 
chant : banks, F. Van Laaschot 
(NatWest owns 25 per cent). 
This move duplicates the moves 
made by ABN and Amro in 
1975, when they took over 
Bank Mees and Hope and 
Pierson, Heldring and Pierson, 
probably the two best known 
Dutch-merchant banks. 

The commercial banks have 
not just.sat back and allowed 
tbeir market share to be eroded. 
Tbey have become much more 
active in the savings deposit 
market,' the traditional preserve 
of the savings and co-operative 
banks, and have also set up 
specialist medium-term lending 
institutions. Amro’s vehicle for 

extending medrum-tenn credit is 
the Nationale Bank voor Middel- 
lang Krediet, and in the case of 
ABN it is Maatscappij. voor 
Krediet op Vaste Termijn. 

Both Amro ’and ABN have 
also become much more active 
providers of housing finance in 
response to the competition, and 
tJbis is now proving to be one 
of the fastest growing areas of 
new business for them. ABN’s 
mortgage subsidiary is known 
as Algemene Bank voor Hypo- 
thecair. Krediet. Last year it 
granted 13,000 new loans (the. 
average sum was FI. 107,000) 
and its total mortgage loans 
outstanding rose by a third to 
FI. 3.7bn (£900m). In the case 
of Amro its housing loans rose 
by FI. L2bn to FI 4.9bn. in 1977. 


• Five- 

1973 1974 1975 1976 1977 % 


Algemene Bank Nederland . 82 . 97 186 205 234 185 

Amsterdam-Rotterdam Bank ... 101 119 161 184 213 111 

Nederlandsche Middenstandsbk. 40 44 56 78 98 145 

SIZE. Flbn • 

Algemene Bank N.ederland . 29 35 ' 50 56 64 121 

Amsterdam Rotterdam Bank ... 27 34 42 50 59 118 

Nederlandsche Middenstandsbk. 12 14 IS 22 27 125 


lb do business 
in Holland, Pierson 
using two banks. 

You need a creative merchant bank 

A business man needs a bank that 
speaks business language. 

A bank that understands domestic 
and international business problems. 

A bank that creates individual solutions, 
rather than dusting off standard formulas. 

A bank that gives the complete range 
of special financial services. 

Pierson is that bank. 

For example, we are particularly well- 
equipped to help you with capital financing. 
First working with you on your financial plans, 
then determining your exact financial require¬ 

If you need loan capital, we are expert 
in all types of bond issues - public, private, 
national or international. 

Or we can arrange equity or equity- 
linked financing. 

We also offer you expertise in mer¬ 
gers and acquisitions, sales, corporate trust 
activities and tax counseling. 

You need a capable general bank 

When you’re setting up business in a 
foreign country, one of your first steps is to 
solve your day-to-day banking needs. 

Pierson, Heldring & Pierson’s general 
banking services take care of chores like 
money transfers, foreign exchange and docu¬ 
mentary credits. 

While our financial advisory services 
help you with equity, debt financing and bank 

Leaving you free to tackle more 
complicated financial matters. 

Pierson is two banks. 

We have the commercial banking 
services you expect and the merchant bank¬ 
ing services you need. In Holland and through¬ 
out the world. 

If your business is international, let 
Pierson show you how one bank can be the 
two banks you need 


Head office: Herengracht 214, Amsterdam Ike Netherlands. Telephone: 020 - 211188 

London <V.K>Lin»tedl9.St Swithirf* Lane. Won EC4N SAD.Telepfaone 01 -626 3966. 

cun yMima, in Uirajao, Luxembourg. I'nncd bates, Switzerland Bermuda, Indonesia, Hong Kong and Japan. 

Aside from traditional areas 
of diversification such as in¬ 
surance broking, leasing and 
factoring, both Amro and ABN 
have moved into the travel 
agency business, which is cur¬ 
rently experiencing explosive 
growth. Amro Bank’s Amro- 
Reizen, sold 63.000 tours in 
1977, 65 per cent up on the 
previous year, and conserva¬ 
tively expects to sell at least 
70;Q00 holidays and 6,000 
business packages this year. 
Amro now markets its travel 
agency services through over 
500 outlets. ABN is not quite so 
involved in the business, but 
even so its tour sales increased 
by 60 per cent to 40,000 in 1977 
-—a year when there was 
virtually no growth in the 
overall tours market. 

While these ancillary services 
do help meet the banks’ rising 
overheads there is no denying 
that the banks are highly de¬ 
pendent on the fortunes of the 
Dutch economy. Last year the 
economy grew by 2\ per cent 
and the out-turn this year is un¬ 
likely to be markedly different. 
Inflation, which dropped from 
9.0 to 6.7 per cent between 1976 
and 1977, is forecast to slip to 
54 per cent in the current year. 
At the start of last year the de¬ 
mand for credit was fairly 
buoyant, the Dutch guilder was 
strong and foreign inflows 
helped posh interest rates lower. 
However, in May, 1977, the 
Dutch authorities, worried by 
what they regarded as excessive 
credit expansion, announced 
that the growth of commercial 
bank credit to the private sector 
during 1977 should not expand 
by more than 12i per cent inso¬ 
far as such credit was not finan¬ 
ced on the capital market As the 
banks had expanded their lend¬ 
ing to the private sector by over 
20 per cent in 1976 the official I 
curbs were quickly felt and 
banks were only able to ex¬ 
pand their lending by more than 
the 121 per cent by drawing 
heavily on the capital markets 
via rights and loan stock issues. 
Hie heavy demand for fund6 by 
the banks has Increased longer 
term rates of interest and, be¬ 
cause the finance is more ex¬ 
pensive, has narrowed the 
banks' net interest margins and 
depressed profits. Last Decem¬ 
ber the Dutoh central bank ex¬ 
tended the credit restrictions 
for the first quarter of 1978 
and the permissible growth rate 
was 21 per cent. It looks as If 
the credit restrictions will re¬ 
main in force until September 
at least 

Against this background 
Dutoh commercial banks have 
done well to continue pushing 
tbeir profits higher. Over the 
past five years the net profits 
oF ABN have grpwn by 185 per 
cent and for Amro Bank the 
growth has been 111 _per cent. 
The smaller Nederlandsche Mid- 

denstandsbank, -in which the 
Government has a stake, has 
increased Sts profits by 145 per 
cen t over file same--period. How¬ 
ever. the conrtrination of slug¬ 
gish economic growth and in¬ 
creasing competition from the 
savings and co-operative banks, 
has meant that the scope-for 
further sharp increases in both, 
profits and market share by the 
Big Three Dutoh banks is 
limited. In common with other 
international banks, they are 
now looking overseas for much 
of their future growth. 

Fortunately, Dutch banks were 
among the first to expand over¬ 
seas and consequently they are 
already well established. With 
over 200 overseas branches in 
40 difference countries. Alge¬ 
mene Bank Nederland is by far 
the most important Dutch bank 
overseas. The bank traces its 
ancestry back to 1824 when 
King William I set up the 
Netherlands Trading Society, 
and it opeared its first office In 
Batavia (now Jakarta). Even 
now some of the older -traders 
in places such as Bombay and 
Calcutta stall refer to ABN as 
the Netherlands Trading Society 
and in Saudi Arabia Indonesian 
pilgrims- to Mecca often fre¬ 
quent ABN’s three local 
branches. In September these 
three branches were transferred 
to Albank Ate&udi ALhoUandi in 
line wd-th the official Saudi 
Arabian wish for majority con¬ 
trol of foreign bantemg ventures. 
ABN has 40 per cent of the 
new venture and has a manage¬ 
ment contract. ABN is weH 
represented in the Middle East 
either via joint ventures or its 
own branches. In Iran it has 
a 33.9 per cent stake in the 
Mercantile Bank of Iran and 
Holland, which has 41 branches. 

Apart from its widespread 
overseas branch network, ABN 
co-operates with other inter¬ 
national banks -through the 
associate banks of Europe group 

(ABECOR). Its British partner 
is Barclays, in Italy It is Banca 
Nazionale del Lavoro and in 
Belgium it is Bank 'Brussels 
Lambert. Aside from running 
joint representative offices in 
Mexico City. Tehran and 
Sydney, the Abecor banks run 
a common training establish¬ 
ment in Bad Homburg. 

By contrast, Amro Bank has 
never had a large overseas 
branch network. It was the 
result of the merger in 1964 
of two large domestic banks— 
the Rotterdamache Bank and 
the Ainsterdamsche Bank. The 
latter ’had already been. , co¬ 
operating: with Midland Bank, 
Society GfenSrale de Banque and 
Deutsche Bank in the so-called 
European Advisory Committee. 
This later developed into the 
EBIC banking, dub. This’has 
probably - been- the most 
successful of all the European 
banking, ‘‘clubs.” It has spawned 
a host of. jointly owned' banks 
such as the European American 
Bancorp,' Banque Europeene' de 
Credit and the European Bank¬ 
ing Company. Until recently 
Amro, -in common with its 
European partners such; as 
Deutsche and Midland Bank, 
channelled' most of its .inter¬ 
national business through these 
affiliates. However, it is now 
opening its own offices in major 
overseas financial centres to 
give additional support to its 
customers. It opened in Tokyo 
in 1976 and last October estab¬ 
lished a London, branch. It is 
planning to open in Dubai and 
has other overseas locations in 
mind. While it is still fully 
committed to the EBIC “ club " 
Amro obviously feels that it 
has to have some -direct over¬ 
seas presence If it ; is .to: have 
a significant part of;its profits 
coming from International .earn¬ 
ings. The days when it could 
rely wholly on its domestic 
business- for. its future growth 
are cHsappearing.- -• 

William Hall 



570, Keizersgracht 

Teh (020) 244136 
Telex: 15689 

.—Portfolio management ‘ 

—Investment research' & analysis 
—Securities arbitrage • . ’ ' 

—Acquisitions & mergers ; . ^ ■ 

■—Block trading 

.. ^-Corporate Finance / Private placements 

Associated with * 


Brussels O Amsterdam 

Fmandal Tunes Wednesday July 19 1978 




r : ■ T** r' ‘ ~ . . ii«di—MM 

depends on having 
the right connections. 

And the right connections are particularly important when it comes to 
arranging international finance and investment opportunities. 

As awholly-owned subsidiary of The Bank ofTokyo, Ltd-we are backed 
by almost a century of experience in serving international business. 

In addition, our office in Amsterdam trades various kinds of securities. 
Please consult us about your requirements. 

The Bonkof Tokyo (Holland) N.% 

Amsterdam Keizersgracht 602. Rotterdam Weslblnak 127. 

Telephone; 020/5JO 89 LL Telex: 14497. Telephone; 010/1116 00. Telex: 204S?.. 

Your international connection 


; t 

: j ' ■ 


The equity market 

THE TOTAL market value of looked an isolated case and the FIs 20,000: O.S per cent on trans- 
equity shares in Holland is stock market remains a mori- actions up to FIs 200,000: and 
around £llbn and as such rep- bund source of capital raising. 0.7 per cent on any larger 
resents no more than roughly The problems largely mirror amounts. 

1§ per cent of the combined those found on most stock The profit margins on turn- 
capitalisation of the world's exchanges around the world, over are narrow and in fact 
stock markets. In terms of Equity capital is expensive in most of the banks claim to lose 
Europe alone the proportion both terms of issuing costs and money on their equity 
rises to almost 7 per cent. But in terms of its effect on the operations. Average dealing 
despite its modest dimensions future course of earnings.- There costs for a bank amount to 
the Amsterdam Bourse does are also considerable fiscal dis- something like 1 per cent in- 
house a generous sprinkling of advantages. eluding tax, rising to li per cent 

’‘international stocks” and this At the outset anyone contem- for deals of under FIs 20,000. 
tends to give the Dutch market plating an equity issue becomes Minus heavy overheads in fixed 
something of a special flavour, involved in considerable pub- assets and analytical backrooms 
That said, the point must be lishing costs, while the issue of (which the banks seem to find 
made at the outset that it is a a prospectus can bring to bear a necessary adjunct to prestige) 
flavour currently meeting with all manner of accountancy the brokers would appear to 
little demand. One way and headaches for those companies make a satisfactory living, 
another shares like Philips, which have been less than open „ 

Royal-Dutch and Unilever- in their dealing with the tax- IJn CCrt31H 
which has recently warned that man. 

1978 is going to be a difficult Moreover equity issues have Looking ahead, the tenor of 
year—are all suffering from the a direct bearing oh earnings the market is uncertain. With 
sluggishness of the • world patterns since they involve per inflation slowing and no par- 
economy. At home, official share calculations in dilution ticular currency uncertainties 
estimates for the growth of related to the amount of new arising from inside Holland, the 
Gross Domestic Product are capital floated. Finafly — and broad economic picture for the 
being downgraded while a nuni- perhaps this is the foremost industrial and commercial see- 
ber of independent forecasts deterrent to equity expansion tor contains grey areas rather 
are taking an even more pessi- at the moment — interest paid than insidious black spots, 
raistic view. Overall, the out- on loan capital is tax deduct- Generally speaking, if corporate 
look for corporate profits is able, whereas equity handouts profits are unexciting they are 
unexciting. bear fully on to corporate at least continuing to point up-. 

The main share price index profits. wards. Much depends on coming 

in Amsterdam (the ANP-CBS Fob the most part, however. wage: rounds but some financial 
index) hovers currently towards the market makers —. the institutions are beginning to 
the middle of a trading range authorised brokers and the think in terms of comfortable 
that goes back to the final quar- major banks which are also mem : earnings impro vem ents for most 
ter of 1976 and is roughly 9 per bers of the Bourse—would of Dutch industry this year, 
cent above its low for 1978. seem to have come to terms with Labour costs grew last year at 
According to Capital Interna- the realities of the situation, a markedly slower rate than in 
tiunnl. Dutch equities managed After all. so long as dealing 1976 when unit labour costs 
a gain of 5-i per cent over the volume stays above break even advanced by 44 per cent. An 
first six months of this year levels, the stock market is in do extension of this trend and 
which, although one of the bet- obvious danger of fading away, some predictions see unit labour 
ter performances in Europe, The Bourse opens officially at costs climbing by less than 1 per 
still contrasts dully with France 11.30 in the morning and cent in 1978 — would help to 
(up 30 per cent). Sweden and closes just one hour and 45 underpin confidence. 

Italy. minutes later. But pre-market The first quarter performances 

trading tends to start up -at of the three major industrial 
T'ii<£SI!iv3!ltSlO r 0S around 9 am, while after-hours companies have not, however, 
L/l^dUTaiHa^i.a dealing goes on for as long as done much to inspire confidence 
The market does have a num- there is a viable demand for a Net incomes at Philips and 
ber of structural disadvantages, market. In this latter respect Unilever dropped by 18 per cent 
For a start the number of the link up with New York in and 12 per cent respectively 
shares in issue in terms of in- the late afternoon and the pie- while at Royal Dutch bottom 
dividual listings has shrunk vailing aopetite on Wall Street line figures practically dis- 
draniatically over the past de- for the Dutch “ internationals” appeared under the impact of 
cade. In 3968 the Bourse could is a major trading influence, the depression in the world’s 
boast 503 individual listings; at Unlike his counterpart in oil markets, 
the end of 1977, after a period London, the private investor is A dip of 4 per cent in net 
of intense industrial rationali- a major force in Amsterdam, sales at Royal Dutch was trans- 
saiion (plus the odd business Estimates vary but it would formed into a 5 per cent set- 
failure). the number was down seem that something like two- back for total revenues. But 
to *249. Thus the choice- of fifths of the market is held in the marginal nature of the 
investment has narrowed signi- private hands. Investors do not group’s business was reflected 
ficantly in a period of strong have to suffer dividend controls, dramatically once its huge 
capita! expansion by the major capital gains tax — as far as operational gearing had taken 
companies with the result that individuals are coiverned — Is effect Pre-tax profits were more 
today the half-dozen or so lead- unknown and dealing expenses than halved and net income 
inq shares account for some- are relatively modest. emerged at just £6ra compared 

thing like 50 per cent of the The average commission works to £416m_ The result repre- 
tntnl value oF the stock market out at around 0.8 per cent of sen ted an improvement on the 
Earlier this year the con- the amount invested. The basic fourth- quarter of 1977, but it 
struction group Adrian Folker sliding scale of charges laid is clear that the outlook remains 
came to the market with an issue down by the Bourse is l per cent troubled. 

amounting to around 10 per cent plus FIs 3 contract note com- Sales gains of 3 per cent on 
of its capital but this always mission on transactions up to a cash basis at Unilever masked 

a disappointing drop of some 
2 per cent- in volume terms. 
Moreover, for the first time in 
a very considerable period, 
operating margins slipped below 
5 per cent, while the group’s 
net margins were down to under 
2 per cent. The areas of 
strength remained outside 
Europe and North America, and 
in them net margins of almost 
5 per cent — some 2| times the 
group average — underpinned 

sharp advances in earnings. 

At Philips volume sales moved 
up ‘ by 7 per cent during the 
opening three months of the 
year. But currency fluctuations 
bit deeply Into the group's 
domestic operations and this 
was the main cause of the over¬ 
all profits decline; gross mar¬ 
gins narrowed by almost a 
quarter to 5.8 per cent. 

Jeffrey Brown 

/ 2 , 500 rFlsM 









J F 

k Ik 

J J k 


s o 

D J 


¥ * k 


■ J 

The world’s second biggest 
oil company is Royal Dutch. 
Dutch tugboats tow ships 
across live world oceans. 

Dutchmen are building 
harbours all over the world. 
Dutch Friendship airplanes 
are used for local transport all over me world 

Hollandis too smallforthe Dutch. 

Does it surprise you then that aDutch 
bank, the ABN Bank, has branches 
in almost everyfinandal 
and trade centre in the world 

• '$4% 

The Dutch are globe trotters. They 
have to be, if their small country is to mean 
anything in the world. They have been 
building, transporting and trading in 
foreign lands for centuries. 

So has the Algemene Bank Neder¬ 
land in 40 countries on the five continents. 
Supporting local as well as international 
banking needs. They know the right 
people, the languages, the markets, due to 
their 150 years of international business 
and banking experience. 

Everywhere the Algemene Bank- 
Nederland can offer you the same service 
based on the support of their head office 


experts in Amsterdam and their strong : 
financial position. > 

Apply for the brochure "The ifer- 
national network of the Algemene Bank 
Nederland”. 'A::A ' 

ABN Bank, Dept.C.B.K., 
Vijzelstraat 32, P.0. Box 669, Amsterdami- 
The N etherlands.Telex 11417.Tel egraphicA 
address: Genbank. 

London , Chief Office, 61, Threadneedle Street 
EC2P2HH, P.O.Box 503, 
telephone (01) 6284272,telex S87366. 
Manchester . Pall Mall Court,61, King Street, 
M2 4PD, telephone (061) 8329091, 
telex 668469. 

ABN Bank 

The ABN Bank has offices and affiliations «■ The Netherlands. Ireland, Great Britain, Belgium. France, Federal Republic of Germany, Switzerland, Gibraltar, Italy. Greece.Turkev 
JHolantse Bank-Uni), Lebanon,$audi AnbntAjbogk Alsaudi Alhollandi), United Arab Emirates. Bahrain, Iran (Mercantile Bank of Iran and Hofland). Pakistan.India, Malaysia, Singapore. 
Indonesia, Hongkong, Japan, Morocco (Algen^oBank Marokko SJU, Kenya, U.S.A., Canada, Netherlands Antilles, Suriname, Venezuela, Peru, Panama, Australia, Mexico ^ 
Operating un d er the name Banco Holandes unmo nu Argentina, Uruguay, Paraguay, Brazil, Ecuador, Cnlnmhfa , 



Financial Times Wednesday; July 1973 

dutch capital MARKET IV 


Specialists in all aspects of: 
Foreign exchange and Euro¬ 
deposits. Corporate Finance, 
Short and medium terra 

Private placements 
end Bond dealing. 

Head Office: 

Iloge Stcemveg 27-31, 

The Netherlands 
telephone (073) 153911, 
telex 50600. 

Branches: 14. 

London Representative 

1 Prince? Street, 

London EC2P 2AH, 
telephone 101)6063263, 
telex 833373.. 


F. van LanschotBankiers 
(Curacao) N-V, 

Willemstad. Curacao, 
Netherlands Antilles, 
telephone 12350, telex 1065. 

Afllliated Institutions: 
Atlantic International 
Bank Ltd. * London); 
Financial & Leasing 
Corporation A.G.(Zug). 

Evan Lanschot 

Van der Hoop, 
Offers & ZoonN. V, 

A °1807 




Commercial Banking 
SS Westersingel 

Telex 22199 

Phone 010-363688 

Investment Banking 
497 Keizersgracht 

Telex 15441 

Phone 020-227311 


European Option Exchange 

On fifth April 1973. Amsterdam opened a market for 
traded options. The EOE is the first exchange of its kind m 
Europe and the first exchange in the world with interna¬ 
tional listings in different currencies. 

Traded options offer investors the opportunity to benefit 
fiom pi ice fluctuations on shares for a relatively small 

Should you want more detailed information about this 
new and flexible investment tool, please fill out the form 

You will receive our free of charge introduction brochure 
as well as a list of banks and stockbrokers who are mem¬ 
bers of the EOE. 

Name:....... . 


Town. Country:... 

I would like to receive a copy of the brochure "Who) ore 
traded options" and a list of Public Order Members. 

Insurance in good order 

DIFFICULT AS conditions have 
been for Britain's underwriters 
in recent years, the problems 
of the Dutch insurance industry 
have been even more intense, 
caught as it has been 
between the pressures of 
a sluggish economy and Govern¬ 
ment control over premium 

Such have . been the diffi¬ 
culties in their domestic market 
that the larger Dutch groups 
in the field have tended increas¬ 
ingly to look abroad for 
expansion and important con¬ 
tributions to profit. In some 
cases, diversification has' even 
taken place outside the insur¬ 
ance industry in order to reduce 
dependence on the basic 

■ Such moves to broaden the 
character of the companies’ 
businesses have paid off well in 
the recent difficult times and 
the net result of the strategies 
followed has been that the Dutch 
insurance companies mostly 
emerged in good order from 
last year's trading, having been 
able to make sufficient progress 
outside the field of under¬ 
writing in Holland more than 
to offset the disappointments 
there. Progress was often mainly 
due to buoyant investment 
income — always a vital 
element in insurance group 
earnings — along with good 
trends on the life side of 
domestic operations and in 
business of various kinds over¬ 

Now, as the industry advances 
through 197S, there are modest 
hopes of a better trend on the 
important basic underwriting 
side, since certain increases in 
premiums have been permitted, 
though not on the scale the 
industry thinks necessary to 
give it a reasonable return on 
its business in the home market 

Just how intense the squeeze 
on underwriting in Holland 
itself was last year is shown 

by the experience and comments 
of some of the big groups. 

Nationale-Nederlanden, the 
largest group in the Dutch 
insurance industry, has referred 
roundly to the “distressingly 
poor results in The entire 
market (which) underscored 
the need to put business on a 
sound basis again.” 

Commercial Union Assurance, 
the big British group which 
owns Ddta-Lloyd. one of the 
larger Dutch insurance com¬ 
panies — an interest it bought 
for £27m in 1973 — has been 
equally outspoken. Having noted 
that the CU group's poor under¬ 
writing results for Western 
Europe (a loss of £19.9m in 
1977 against one of £17.4m in 
the previous year) were largely 
due to underwriting losses in 
the Netherlands, the chairman, 
Sir Francis Sandilands. con¬ 
tinued in his recent annual 
statement; “All classes were 
unprofitable and in the main 
this was due to inability to 
obtain adequate increases and 
to an undisciplined market 
About half the total loss was 
in the motor class.” He added 
that significant rate increases 
for 1978 have been approved 
for a number of major classes 
of insurance and that “in the 
light of deteriorating results, 
market discipline appears to 
have improved.” However, no 
rapid improvement in results 
was expected. 


Probably about 70 per cent 
of the ClTs £19.9m underwriting 
loss in Western Europe was 
accounted for by Delta-LIoyd’s 
Joss Jast year, while Josses of 
other CU interests in Holland 
were responsible for another 15 
per cent of the loss. This meant 
that the Dutch business con¬ 
tributed as much as around 85 
per cent of the £19.9m under¬ 
writing loss in Western Europe. 
However, it must be remem¬ 

bered that considerable invest¬ 
ment income accrued to the CU 
from its insurance business in 
Ho Hand and that, under Dutch 
practice much of tin's income 
— shown separately in British 
accounts -— would be counted'in 
the underwriting result, produc¬ 
ing a more favourable picture. 

Over the past year or so, the 
Dutch insurers generally -have 
addressed themselves to their 
underwriting problems in a 
much more energetic and co¬ 
ordinated mann er. Previously., 

premium rates had become what 
the industry regarded as very 
seriously inadequate. To 
remedy this, firms got together 
last year and concentrated on 
seeking a more organised sys¬ 
tem for calculating needed 
increases and urging them on 
the Government authorities 
concerned with price controL 

There has also been more 
recognition of the need for some 
of the previously cut-throat 
competitive attitudes to be 
abandoned, since these also put 
pressure on rates in a way which 
ultimately helped none of the 

This is how the Board of 
National e - Nede rlanden ex¬ 
pressed the matter in its 1977 
ann uli report: “After years of 
disappointing results, the non¬ 
life insurers in the Netherlands 
have realised that the situation 
can no longer continue as it is, 
and have recognised the need 
for a return to common sense. 
A survey has shown how rapidly 
operating results have, been 
declining . . . Attempts are 
now being made along three 
paths to restore the non-life 
insurance sector ... to health. 
A study has been instituted con¬ 
cerning the establishment of a 
joint central advisory body to 
provide the data required . . . 
to constitute a basis for setting 

“Healthy market conditions 

are being promoted and these 
can only be achieved if the in¬ 
dustry, while fully recognising 
the need for free competition, 
nevertheless adopts a more 
orderly approach. Rules are 
(also) b eing formulated for 
price consultations with the 

After lengthy discussion, and 
some delays due to the pro¬ 
longed Government crisis, in¬ 
creases of some 15 per cent 
were officially permited in fire 
premiums before the end of 
last year, and further rises of 
the same order have been 
authorised on the rates for. 
Dutch motor insurance, in two 
instalme nts, from January 1 
and July 1 this year. Other 
rates have also been raised. All 
these moves have injected a 
greater spirit of hopefulness in¬ 
to the business. 


Despite the problems in the 
domestic nan-life market, .how¬ 
ever, companies have been able 
to present reasonable results 
from their total business. 
Nationale - Nederianden in¬ 
creased its total net profit by 
15 per cent to FI 205m (£49m) 
in' 1977. Thanks largely to the 
business outside Holland, its 
non-life results emerged with a 
marked improvement to a profit 
of FI 49.4m (£ll.Sm). against 
FI 21.2m previously, with the 
Dutch fire business pulling out 
of the red, though the domestic 
motor business, awaiting higher 
rates, incurred an increased 
loss. Investment income was 
modestly up. 

In Britain. N-N owns Orion 
Insurance, a specialist in marine 
and aviation business, which 
contributed substantially to its 
parent's profit Other interests 
of the group in the UK are 
Life Association of Scotland and 
Merchant Investors Assurance, 
which was bought from United 

Dominions Trust in 1976 and 
which has a unit-linked life and 
pensions business. ' In 1977. 
Merchant Investors expanded 
rapidly, its premium income 
rising by 126 per cent to £12.6m. 

Some 37 per cent of N-N’s 
revenue in 1977 came from 
activities outside the Nether¬ 
lands, compared with 32 per 
cent in 1978. Expansion 
nationally and internationally 
continues, and the ■ group 
recently raised £30xn through 
a rights issue to reinforce its 
capital in this connection. Last 
year, the group acquired the 
bulk of the ■ US. company 
Security Life and Accident, a 
life company based' in Denver, 
Colorado, to add to its two 
other interests in the U.S. life 
business; Wisconsin National 
life and Midwestern United 
Life. It also raised its stake 
in Peerless, an American non¬ 
life insurance company, to SO 
per cent In Europe, two 
Belgian financing companies. 
Sodefina and the now-renamed 
Sodecrddi, were taken over to 
enlarge existing interests in 
Belgium, while new offices were 
opened in Spain, Saudi Arabia 
and the United Arab Emirates. 

Ennia the insurance group 
whose overseas interests include 
a British subsidiary, the former 
Triumph Insurance, has 
recently increased Its capital as 
part of a plan to broaden its 
activities. A placing of deposit¬ 
ary receipts to raise FI 20m 
(£4|m) has been carried out by 
an international banking syndi¬ 
cate and is increasing the 
company’s capital by 10 per 
cent, much of the addition being 
held abroad. After a 20 per 
cent increase in profit last 

year to FI 42.9m (£10.6m), the 
group—which also has interests 
. in the Western hemisphere and 
the. Middle .East end which 
operates beyond insurance, in 
such fields as personal loans 
and property development—is 
looking for a further rise in 
profit in 1978. 

ABIEV, another of the larger 
groups, which conducts insur¬ 
ance . business through, .its 
Utrecht subsidiary' in . Britain 
and elsewhere in Europe, .has 
also recently raised cash 
through a FI 5.5m' ■ (£L3m) 
rights issue and is forecasting 
a 15 per cent rise in earnings 
this year'after an increase in 
1977 to FI 71.4m (£17.0m).; 

' The company, which'- earlier 
this year completed the acquisi¬ 
tion of Time Holdings* . of 
Milwaukee- in. the US. is 
to bid FI Wm (£2.4m) 'for 
the Dutch agricultural property 
group Dordrechtsche Laudbou- 
wondemetning. Outside insur¬ 
ance, it holds a 9 per cent stake 
in the British concern Combined 
English Sores amL-in partner¬ 
ship : with Combined English, 
owns Combined European 
Retailers, a stores business 
which operates on the Continent 

Amfas, a somewhat smaller 
group whose net profit rose 
18.8 per cent in 1977 to 
FI 29.4m (£7m), has made the 
point that its non-insurance 
activities improved considerably 
and life insurance produced a 
favourable profit, while acci¬ 
dent insurance produced lower 
results than in 1976. The com¬ 
pany. which last year launched 
a mortgage bank, has predicted 
further sound profit and turn* 
over growth this year. ■ 

Margaret Reid 


Tight control over 
the money market 


THE DUTCH authorities have pressure on interest rates, end Money market conditions are Moving in line with the 
kept tight control over their indeed this was probably never often difficult in London around D-mark has great benefits from 
domestic money market the intention, since it would that time, for the same reason, the point of view. of reducing 
recently and have tended to hardly be official policy to choke but in the case of the Bank the cost of imports, thus helping 
pursue a rather cautious policy off the little recovery in of England intervention in the to keep down inflation, but it 
as the guilder has lost some of industrial output that has taken money market is made through can produce problems over the 
its attraction when compared place. an intermediate group. This competitive position of industry 

with its powerful partner the Demand for credit has been is made up of the 11 discount and over obligations to inter- 

West German D-mark. at a generally i 0 w level during houses, who act as a buffer vene in the foreigo exchange 

In order to exercise control the past few months, and this between the major banks and market to maintain snake 

over the domestic money situa- has encouraged a moderate the central authorities. Sup- panties at times of currency 
tion the Netherlands Bank easing of interest rates. Money ? ort or guidance to the market unrest 

operates direct limits on lend- market conditions have Siven through this group, speculative currency move- 
ing by commercial banks. Re- improved, although earlier this ^ large help is required then meats can create excess 

strictions were introduced in month there were signs that Bank of England will give liquidity problems in domestic 

May last year, limiting credit demand for money for holidays, i* buying various types of money markets, and this is 
growth for the year to 12 -A per coupled with tax payments. TJR domestic bills held by the probably part of the reaso ning 
cent, while in the first quarter were giving rise to a hardening bouses. This in turn increases behind the relatively cautious 
of this year lending was allowed 0 f ra tes. liquidity in the entire banking att itude adopted by the Dutch 

to grow by only 21 per cent, or __. . . *_.. sector, but in Holland, as in authorities 

at an annual rate of 10 per cent. * n con ^ rast ’ . on . J H n ? 26 ^ most other countries with a AlThoiich a dinht a 9 e in D n f 

In April the arrangement was ^ a11 ® on *y rate had been cut financial centre, no such group _ nn _ v ° rk _ f g oi 

extended for a further 12 “ 1 P 8r «« ’S ent - exists, end the Netherhmd Ban* “““ has 

months, allowing an annual T^ l L W ^. S ,owest level since mus t intervene directly with h ® 1116 Problems 

growth rate of 8 per cent bepteraber last year and was ^e commercial banks. ^ 

, . , .. the result of increased liquidity of inflation, although comfort- 

This is somewhat misleading. caused by Government disburse- T> abl Y low by the standards of 

ho * e )Z' ments to local authorities. KfillGV 6 many countries, is still higher 


chances for exceptional 
profits on the stock 
exchange and enropean 
options exchange 

We offer wide experience and personal 
attention in a number of attractive 
investment areas: 

• investment research and information, on 
Amsterdam Stock Exchange opportunities. 

• as an official stockbroker, we intermediate 
for any boy or sell operation as well as odd lot 
and block transactions and handle private 
placements, credit finance intermediation 
and offer investment consultancy. 

• as an official dealer on the Enropean Options 
Exchange, Amsterdam, we offer full services 
and advice. 

• our market-making publications, which are 
cited in prominent Dutch publications, offer ’ 
a wealth of information. Our latest is on the 
two types of warrants offered by ’’Nationale 
Nederianden”, Holland’s largest insurance 
group, which is in the midst of a major 
acquisition programme. 

Contact us for further details: 

growth of lending not financed mnauon out a aisnnci unpruve- occasions the central bank 

by the banks’ own funds or ment from th e opening months sought to relieve the situation A move to combat this and cut 

long-term borrowing. As a of the year. by making available special unemployment was announced 

result the apparent reduction Funds flowing into the advances to the banks, and in the end of Jane. Public 
of the credit coiling to 8 per Treasury, partly through heavy the following months conditions spending cuts totalling FI 10bn 

cent represents very little real tax payments, created tight did improve. (£2.4bn) are to be made up 

tightening of credit. conditions in January and By March the day-to-day rate 11111111981 > m ainly through limit- 

The restrictions have not February, leading to interven- ^ad eased slightly to 5.27 per * ng pay rises the public 

N.Z.Vooi bur g w al 98-100 P.O. Box 392 
TeL- 020-238430/2398557610x11409 

1 produced 

great upward tion by the central bank. 

cent, falling to around the 
present level of 4J per cent by 
early May. 


Monetary expansion has be¬ 
come less of a problem. On the 

During April the central bank wider definition it came down 
discount rate was cut to 4 per To ver c* 11 * ha the last 

cent under the influence 



130 Herengracht 
Telephone 239411 

1015 BV Amsterdam 
Telex 16 665 

some deceleration in the rate of annua l rate of 20.2 per cent in 
inflation, more stable conditions tte quarter, and continued 
in the foreign exchange market, to decline in the early months 
and the need to induce some ° f this year - narrowly de- 
improvement in economic m °ney supply (Ml) eased 
growth t0 19-5 per cent in February, 

The discount rate had been as against 109 per cent inJanu- 
lifted to 4i per cent from 3| ar ^‘ _ „ 

per cent in November, at a time A L. t * 1 - e ^ 0re )f? m ‘ 

when the weakness of the dollar , J” USmP? 

and hence severe upward 

pressure on the D-mark were ffj® 3 ff 51 ha ^. of 

putting uncomfortable strains 2* 

Bank der 

Bondsspaarbanken N.V. 
Your Dutch partner in 
Securities Operations 

on the European currency 
snake ^ an< * ^ his ten< l e( l produce 

Holland has probably felt ***£ 5h * rt 

that the benefits of being tied en £ ^ k™ 

to one of the world’s strongest pa - p ^ h ^? 1 t a h t l 0n fi ha L n ? W e be€n 
currencies, the D-mark, out- J*** 5 1 ® 1 “JjJ of f*- 

weighs the disadvantages, but it 51 cou £j produce fur- 

does tend to be something of a jrf r *??? *5?^: .^ 1 ® weak posi- 

weakened against the D-mark, 

Members of The Amsterdam Stock Exchange 
Members of The European Options Exchange 





I double edged sword. 

tion of the Belgian franc within 

The key to the whole situa- the ha f already led to 

tion is inflation, as many coun- su Sifestions of higher interest 

tries have discovered when rat ® s 111 . .. . . 

they tried to remain members . 301Dt 

of the snake while suffering agreement Holland is un- 

from a substantially higher in- nr ^ l f_I^ c be n ^ n U u< * ed by 
flatioa rate than the present ISnSVl T”*** 

members. Wlth 1116 settIn £ U P ° f a new 

It is a matter of remaining E; msana^toemnne' rfr 
within a virtuous circle, and not - 

letting conditions deteriorate rem “S 

into a vicious circle situation, 

even though there is a tempta- months, and new foreign ln- 

tion to ease monetary conditions fjfn „ ^, 6S ^ ie 5 ts 

for political reasons as a short- . occur given the higher 

term panacea fo7 unemploy- jg* 

ment Britain has found this similar investments in Germany. 

ment Britain has found this 
out to its cost in the past 

Colin Millham 

. The Bank der Bondsspaarbanken N.V. 

- the central bank for the~Dutch'Associated 
Savings Baals with a netwwkof over. 

1,000 offices - offers a complete range of 
banking and financial services. 

Deposits, etc. ■ Dfls. 937.660,844 
Capital and Reserves Dfls. 35,000,000 

Bank der .. 

Bondsspaarbanken N*V. 

Authorized Exchange Bank . .* 

Member of die Amsterdam SiockJLxchange 

1001AR Amsterdam, Netherlands, Singe! 236 
P. O. Baz386I, Telephone (0)20-22/066 
Cable address: BankspaaF,TeiexJ/657 

Financial Times Wednesday July 19 1978 



lending settles down 

aanks form a distinct and 

• .nterestjng corner of the 
7 ?“ ntry ' s , banking scene, 
Uthough the bulk of the mort¬ 
gage lending market is serviced 
by a wide range of other insti¬ 
tutions- Pressure on space by a 

. population of nearly 14m., par- 
ticularly in the crowded middle 
and west of the country, means 
the housing market is subject to 
a high degree of control by the 
local authorities and central 
■government. The explosive 
growth of business seen in 1977 
is unlikely to be repeated in this 
or the next few years. Mortgage 
lending will nevertheless remain 
an important source of income 
and growth for the specialised 
’ ■' mortgage banks as well as for 
the universal banks and other 

Official figures of the share of 
' the market taken by the differ¬ 
ent institutions do not give a 
very precise picture of the res¬ 
pective roles of the specialised 
banks, the universal banks, the 
Post Office Savings Bank and 
insurance companies. Informed 
estimates from inside the in¬ 
dustry however give Centrale 
'Rabobank, the agricultural co¬ 
operative, the lion's share with 
about 30 per cent of the market 
The universal banks follow with 
about 23 per cent, then come 
the specialised mortgage banks 
with 20 per cent. The savings 
banks have around 10 per cent, 
with the fast growing Post 
Office Savings Bank accounting 
for about two thirds of this. In¬ 
surance companies have an esti¬ 
mated eight per cent of the 
: market with the rest being 
-»shared out among a number of 
regional mortgage funds and 
other smaller institutions. 

The three main independent 
mortgage banks achieved 
record rales of growth in 
1977. The largest. Westland- 
Utrecht (WUH), took eight per 
. cent of the Fls 42bn ($19bn) 
u market for new mortgages last 
~ year. Its mortgage portfolio 
rose to Fls 8 bn from Fls 5.5bn 

the year before and profits were 
52 per cent up at Fls 46.4m 
(520.8m). The housing sector 
accounts for 65 per cent of 
WUffs portfolio but it has been 
expanding its project develop¬ 
ment activity in recent years 
and bas ambitious plans to 
increase its operations through 
out Europe. 

The Friesch-Groningsche mort¬ 
gage bank (FGHJ increased 
its portfolio by 50 per cent to 
Fls 3.9bn and saw profits rise 
by 56 per cent The FGH has 
switched the emphasis of its 
business In recent years from 
housing to commercial property 
and this now accounts for more 
than half of its portfolio. It too 
has built up its property 
development business. 


The Tiiburgsche Hypotheek- 
bank is the smallest of the three 
independents but it too achieved 
a strong expansion of its port¬ 
folio last year by Fls 195m to 
Fls 535m. Net profits rose 80 
per cent. Tiiburgsche has been 
Increasing its housing mortgage 
activity at the expense of the 
commercial sector. Unlike the 
other two independents it has 
a strong regional bias, doing a 
lot of business in the province 
of North Brabant 

The recently introduced 
central bank curbs on the grant¬ 
ing of credits have had the 
desired impact. The bank last 
year introduced limits, on the 
growth of bank lending which 
was not financed by long-term 
borrowing. Since nearly all of 
the specialised mortgage banks’ 
lending was traditionally 
“ long " they were better placed 
to meet the high level of 
demand than the universal 
banks. Now that the central 
bank has eased the curbs, the 
specialised mortgage banks are 
already experiencing some flow 
of business back to the other 

Competition is tough given 
the number of companies active 

in the mortgage market and 
margins have come under 
pressure in recent months. 
Compared with the UK mort¬ 
gage market, where the large 
building societies tend to 
present a common front, the 
house purchaser in Holland can 
choose from a variety of offers 
with a good spread of interest 
rates prevailing at any one time. 
Lending rates are often adjusted 
by a few percentage points a 
week as the different banks 
react to demand, the competi¬ 
tion and borrowing rates on the 
capital market. 

Lending rates may fluctuate at 
short notice but are more com¬ 
monly fixed for the first one or 
five years of the mortgage's life. 
After this time they are then re¬ 
adjusted to the prevailing rate 
for a further one or five years. 
This competition means mort¬ 
gages of up to 125 per cent are 
available to house buyers. The 
rates do not tell the whole story, 
however, and some banks set 
limits on the size of mortgage 
they will give on older property, 
or on fiats. 

The mortgage banks' usual 
means of raising funds is by 
borrowing on the private capital 
market and by placing mortgage 
bonds on the public market. 
WUH more than tripled its mort¬ 
gage bond placement in 1977 
with the issue of 'Pis 1.75hn 
worth of "pandbriereiu” Total 
borrowing by WUH was more* 
than double the 1976 level at 
Fls 3.12bn. The mortgage bank 
subsidiary of the Centrale Rabo¬ 
bank raised Fls 2.46bn on the 
private capital market compared 
with only Fls 331 m the year be¬ 
fore. It placed Fls 448m of mort¬ 
gage bonds (Fls 137m in 1976). 

Holland's success in bringing 
inflation down to nearly 4 per 
cent this year should ultimately 
lead to lower rates of interest 
But after several months of 
liquid capital markets, condi¬ 
tions seem set to grow tighter 
in the near term, partly under 
the influence of higher rates of 
interest in the U.S. 

Average bouse prices rose 24 
per cent last year following a 
similar rate of growth in 1976. 
This prompted the central bank 
to introduce credit curbs which 
have now been expended until 
nest March, although a review 
wail be held in September. 
Ironically, the mortgage banks 
have been the ones to benefit 
from these curbs, although the 
authorities have achieved their 
goal of promoting more long¬ 
term borrowing by the banks. 
The curbs, the cut in the rate 
of inflation and proposals to 
introduce inflation accounting 
have put an end to these exces¬ 
sive rates of growth. 

Mortgage bankers now expect 
house prices to be unchanged 
in 1978: there are even signs of 
a fall. Asking prices are bolding 
steady but purchasers are now 
succeeding in knocking 7 per 
cent or 3 per cent off compared 
with 2 per cent or 3 per cent -in 
more normal times. 

The impact of the sluggish 
economy on incomes and on 
levels of uu employment has also 
cut demand. First-time buyers 
who might have been interested 
in property around the 
FI 160,000 range are now unable 
to enter the market and much 
of current mortgage demand is 
from houseowners trading up. 
Average existing house prices 
are FI 210,000 to FI 220,000, 
while new property is around 
FI 190.000. This discrepancy 
is due to Government subsidies 
on new housing and the artifici¬ 
ally low land prices set by local 

Proposals to introduce infla¬ 
tion accounting have, to the sur¬ 
prise of some mortgage bankers, 
had an unexpectedly strong 
impact. The publication of the 
35&page “Eofstra” Report in 
February, recommending that 
Holland introduce inflation 
accounting, provoked a sceptical 
reaction from many bankers. 
The new Government appeared 

unentiuisiastlc and much of the 
urgency of the plan, had been 
removed with the faH of infla¬ 
tion to under 5 per cent from 
the 10 per cent existing when 
tiie report was commissioned in 

Among the detailed proposals 
contained in the report is the 
adjustment of interest income 
and payments far inflation. 
This would substantially reduce 
the tax relief on mortgage re¬ 
payments' allowed to house¬ 
owners. The bankers did not— 
and still do not — give the plan 
much hope of ever reaching the 
statute book. The general pub¬ 
lic obviously did and the mort¬ 
gage sector is now ruefully 
assessing the damage of the 
"Hofstra effect." 

If the Government's 
activities throw an occasional 
scare Into the market, the local 
authorities are a perpetual 
source of alarm for the mort¬ 
gage bankers. They recognise 
that social justice entails some 
degree of control over scarce 
building and living space —- 
particularly in the Rotterdam, 
The Hague, Amsterdam. Utrecht 

conurbation. But the degree of 
control and the slowness of an 
often inefficient bureaucracy 
ultimately do not serve the low- 
fncome family’s interests either. 
A 10-year delay between demo¬ 
lition of old property and the 
completion of redevolpment is 
not uncommon. 

The mortgage banks, in their 
role as property developers, 
also complain of the number 
of departments which have to 
be approached for approval for 
building plans. Tbe slowness of 
the process delays the freeing 
of land for building and creates 
scarcity. This, and inflation, 
push up prices further, they 


An increasing number of 
local authorities, including 
Amsterdam and nearby coun¬ 
cils, will not allow outsiders to 
move in unless they have a job 
within the i mmuni ty. These 
rules apply only to property up 
to a certain price, but the latter 
forms the bulk of the market. 
The aim is to stimulate the 

growth of well-balanced com¬ 
munities and prevent the growth 
of dormitory towns. This tends 
to reduce the effectiveness of 
Holland's excellent network of 
motorways and railways as a 
stimulus for economic develop¬ 
ment And it is a further 
hindrance to the functioning 
of the badly imbalanced labour 

Owner-occupiers at present 
account for only slightly more 
than 40 per cent of the Dutch 
bousing market This is a much 
lower figure than in most of 
Holland’s near neighbours and 
is recognised as so by the 
Government, which has set a 
target of 65 per cent owner- 
oecupancy by 1990. Many rents 
are uneconomically low but new 
property tends to come on to 
the market at more realistic 
rates. The annual rent review 
which sets Government- 
approved norms for nationwide 
increase is also gradually re¬ 
ducing the cheapness of renting 
compared to ownership. Rents 
are due to increase 7 per cent 
in 1978. the same rate as last 

Holland, in theory, solved its 
housing shortage in 1974, 
although much remains to be 
done to Improve the quality of 
existing dwellings. House com¬ 
pletions rose by 4,000 to 111,000 
in 1977 although housing starts 
fell by 10,000 to 109,000. The 
signs are that housing starts 
will now stabilise around this 
level over the next few years. 
But these apparently unpromis¬ 
ing figures conceal the trend to 
bouse ownership. More than 
half of the 1977 completions 
were for the owner-occupiers, 
while two thirds of the housing 
starts were in this sector. 

Holland’s mortgage banks arc 
now adjusting to a slower rate 
of growth than they have seen 
in the recent past. But the 
long-term prospects are good. 
The potential for increasing 
home ownership is large and 
owner-occupiers are proving 
very ready to borrow more 
funds for home improvements. 
Should Holland prove too small, 
the mortgage banks are prepar¬ 
ing to expand into the rest of 
Europe and beyond. 

Charles Batchelor 

Foreign exchange 
markets in turmoil 



THESE ARE traumatic days for 
foreign exchange dealers. Over 
the past year the world's cur¬ 
rency markets have been in an 
almost constant state of turmoil 
as the dollar has alternately 
rallied and lapsed in a steepen¬ 
ing downward curve. A year 
ago the American currency 
stood at something like* 270 tn 
rhe Japanese yen and jusi under 
2.50 to the Swiss franc: at 
present, and In dramatically 
fluctuating markeis, these fates 
stand closer to 200 and 1.80. 

In foreign exchange circles 
in Holland the polite word for 
this sort of market upheaval is 
■unrest.'* and in some ways it 
rvpifies the pragmatic approach 
with which dealers in Amster¬ 
dam set about their business. 

Much of this is conventional in 
[he sense that it deals with 
roreign trade transactions. But 

non-guilder turnover on the __ 

Amsterdam and Rotterdam mar¬ 
kets is just as important as in a foreign exchange dealing 
inmestie activity, as the number room tend to have a major 
»f foreign banks active in the influence on the type of trade 
roreign exchange market testi- undertaken. 
fii'«. Spot dealers need to be 

The main market is based in especially flexible. taking 
Amsterdam where nine Dutch instant decisions almost by in- 
Ivinas have active dealing stinct. The risks are enormous, 
rooms. These include all the Most transactions fall in the 
major hanks, and two of them. $2m-$3m range and a young 
\msterdam-Rotterdam Bank and fflan — for this business is 
Alqemcne Bank Nederland, indeed a young man's business 
iave similar if slightly smaller —needs to be remarkably level 
operations in Rotterdam, headed to stay one Jump ahead 
s’avenburs's Bank also operates 0 f ulcers or a nervous break- 
rotn Rotterdam. All the foreign down. Team spirit is a key 
uanks are based in Amsterdam; ingredient o£ any foreign ex- 
hero arc six. two American, c hange dealing room and this 
wii British, one French and is no where more apparent than 
mu’ Japanese. in the spot markets. 

I£ the risks , m 
forward markets are less 

Markets open sharp at 9 am apparent the underlying pres- 
tnd spot currency rates are sures are just as reaL Perhaps 
ived five davs a week with the the- most, apt description of a 
■eniral bank at 1.30 pm. good forward dealer is 
depending on the intensity of minded For there Is an o 
.ctivilv - and Amsterdam is riding peed for positions to be 
in exception to the general rule elosed regardless nf the 
hr foreign exchange markets amount oE time left standi g. 
hat davs of absolute idleness once any Hnd of a proht is 
ire interspersed with periods of shown. At tiie very mmimum ^a 
umriomonium - most dealers fonvard dea!er has Wo weete 

lari reaching for their hats m which to close his position, 
nmnd fi lO in the evening. The bulk of transactions take 

Broadly speaking the market P laP £ wrthma range 
iroaks down into two main wee^r half month as ihe 
treas of trade, spot and for- Amsterdam market P^rs to 
lard markets. There is a third call it - to 12 months. For 
iron. the so called forward- dollar-guilder dealing some 

oncard market, but this Is banks are prepared to extend 

a reply outside the general run their forward operation*, for p 
f cf.iv-to-dav operations. to five years. 

Bank expertise in either Unlike some of 

pn, of forward markets varies counterparts elsewhero o 
rirtolv partlv because of tradi- Europe, the Amsterdam marKet 
inn — some banks have always has never been j f 

ended to concentrate their foreign exchange scandal If a 

Hurts at one of (he other ends bankhas^me 

,f the currency scale — and in difficulties the experien e 

Sssjaass saar-Mff-K 









banks report their positions 
twice a month. 

Tbe central bank is of course 
the buttress of the foreign 
exchange market, but it remains 
remarkably unobstnisive. It will 
occasionally intervene directly 
bnt only at time of hectic 
activity when there is a need 
for someone to rub off the 
sharper edges of currency 
fluctuations. For the most part 
it is simply there—a calm, im¬ 
passive umpire letting tbe game 
be played to the full. 


Not that the Dutch banks 
would imprudently call their 
foreign exchange business a 
game. Round at Pierson Held 
ring and Pierson visitors to the 
dealing room are assured that 
the system is in no way akin 
to the casinos of Monte Carlo. 

The nerve centre of the 
foreign exchange operations at 
Pierson (which is the merchant 
banking arm of Amro Bank) 
contain seven impressive 
individuals. At the top of the 
Pile is an overall manager who 
co-ordinates two spot dealers, 
one dealer in forward dollar- 
sterling (cable), two deposit 
dealers and one "customers' 
man." . The latter is the pro¬ 
fessional link between the 
principal customers and the 
house dealers. 

As for the currencies dealt 
In, there are six major counters, 
the dollar, French and Swiss 
francs, the yen, the Deutsche- 
mark and sterling. Views on 
the outlook for the guilder tend 
to be far less polarised than 
those of most currencies. Sit¬ 
ing as it does towards the outer 
fringes of the European hard 
currency club, the guilder looks 
placed to give the Dutch central 
bank little cause for alarm. 

One or two doubts are being 

expressed over the Govern¬ 
ment's forecasts for the balance 
of payments surplus this year. 
But whatever the upshot no one 
is expecting anything other than 
a comfortable surplus, and all 
the while the inflation rate con¬ 
tinues to decline. This in Hol¬ 
land is now down to around 4 
per cent and far less noticeably 
out of line with tbe country's 
main trading partner (West 
Germany) than was the case a 
year or so a£ 0 . 

During recent weeks indepen¬ 
dent reviews of the Dutch 
economy have indicated that 
gross national product could 
grow by between 2 * per cent 
and 3 per cent in the current 
year compared to a rise of 2.2 
per cent during 1977. At the 
same time, official medium-term 
expectations have been modestly 
watered down to an annual 
growth rate of around 3 per 
cent Thus unemployment is 
likely to remain a major prob¬ 
lem. This could make life diffi¬ 
cult for the Government, which 
at the moment is managing suc¬ 
cessfully to tread the tightrope 
between tight monetary policy 
and labour unrest. 

The central baiik has 
reaffirmed that its credit policy 
is designed to maintain the 
growth of the money supply at 
S per cent during 1978—com¬ 
pared to the dangerously high 
15 per cent expansion, under¬ 
taken in 1978. 

Jeffrey Brown 

amro bank 

for international finance, 
foreign exchange and 
business development 

Amsterdam-Rotterdam Bank NV 

Head Offices: 595 Herengracht, Amsterdam, telex 11006 
119 Coolsingel, Rotterdam, telex 22211 
London Branch: 29-30 King Street London EC2V 8EQ, telex 887139 

mm bank ID 

amsterdam-rotterdam bank nv 

Branches, subsidiaries or representative offices in Antwerp, 
Curagao, Dubai, Jakarta, London,Tokyo and affiliates in 21 countries. 

Holland Chemical 
International, ltd. 





assistant controller 

is a privately owned international trading company involved in the distribution, 
storage, shipping and trading of industrial chemicals based in Bermuda, with offices 
in Colombia, Ecuador, Venezuela, Brazil, Argentina, Chile, Guatemala. Ei Salvador, 
Mexico the Dominican Republic, the United States. Spain and Holland. 

As a part of our expansion programme we have recently acquired two companies 
in Spain which we are now in the process of re-organising. 

The controlling department, based in Bermuda, is looking for an assistant controller 
to be based in Madrid, initially probably for two years. 

This person will have responsability for improving the reliability of monthly reporting 
and to install group systems and procedures. He has to develop a sound basis for 
the financing of the companies. The job will obviously involve playing an active 
part with local management in the management of the company, 
it must be emphasized, however, that this position is not a short-term contract 
After successful completion of this job the candidate will be relocated elsewhere 
in the group. 

it is essential that the candidate speaks Spanish. 

The company offers a basic salary tailored to local conditions, which will ensure a 
good standard of living, a company car and one month paid home leave annually. 
In addition, the company operates a bonus system linked to profits and performance 
with the possibility of equity participation after some years. 

The company will pay full relocation expenses. 

Letters of application, which should be handwritten, along with a curriculum vitae, 
should be sent to; Holland Chemical International Ltd. P.O. Box 1888, Hamilton 5, 




pr Outsiders. 

BankMees & Hope nv 

Head Offices: An}sterdan% 548 Hereugracht.International Division, 
phone020-52791 lEtelex i 1424,cableMeesbank. 

Rotterdam,93 Coolsingel, phone 010-63291 i. telex 71231. cable Meesbank. 

Western Germany branch: Hamburg. Pelzerstrasse 2 (comer Rathausstrasse) 
.phone040-33172Ltelex0216 1 '32,cableYascogama. v 

Associated banks and financial institutions in:i,on(i<>n and Jakarta. 


•Financial Times Wednesday Julyol9:i97S. 


£-.B 4 




Ex- ance group—have not provided the risk of becoming increas- to which the EOE would be pre- Despite -. the encouraging 

_ •_-_1 _I S_ main luniul trt CIA II 

' U 

increase izt turnover. brought 


THE European Options —-»— r -- - , , . „ 

o£ ( ?s^vdo^ment^ror nw mnvinc av _- Shaiifd commissions It is not anxious to compro- about by the listing of KLM and 

sceptics $ limited success fr^^ blue ^p stS^the 

confirmation of their ^ew second line; companies which it ^ ' ex ™ anS ferenctTand it is unlikely that 51181168 which .have recently 

that option trading would, not ^ hoped will attract more hdoes for FinaneeMihistry. been added to the EOE’s list, 

take root in Europe. For its interest It held back for a . it is which - ultimately supervises dealers complain of the narxoW- 

supponers the present lev«J o£ i on g time from listing the cl “ er JjfJ* rt fhe the EOFs ae^ties-^wSuS ness of. the market .. Only, six 

business is a solid base on which chemical group Akzo and the Swire^nd West welcome it either : But until market makers are really active 

the success of the project can steelmaker Hoogovens because ^nties jn France and We£ wdcome n ^s^ed out of-the-15 listed end-they 

slowly be developed. both -have been maki^ losses ^h^S^C its optic^St .are^tradiD^.in...all. the- listed 

The EOE .continues to be over the pastfewyears add have ^ hftld be Q&QI ^ to ^ XSJS. public, stocks instead-Of specialising in 

igged by the problem of per- had to pass their dividends. Both homing ^nbers The EOE has high hopes of one particular stock The 

ading the various national companies are hopeful of 8 of theEOE beSiS of legis- attracting a substantial-, amount exchange is giving the highest 

regulatory bodies to reduce recovery m the not too distant ” *** the 1980 s of business from the UB. priority •. to increasing the 

their barriers to across-border future. If and when it comes. JJgJJ ftr investor. ‘ number of market-makers. Dr. 

, clients’ losses on ftrtures mar- Despite the lack of familiarity' Scbolten says. The narrowness 
“ kets. These talks are expected of investors in Holland with the of trading means market makers 
to take some time and the EOE idea of options trading the are reluctant to take ^positions 
is now hopeful that French private investor has accounted andthere isa lack of liquidity, 
stocks will be -the next to be for about 40 per cent of the -The EOE wanto the market 
listed. It already has four EOE’s business—a level com-to develop along U.S. lines with 
The EOE was originally meant French broking firms in varioas parable with the U.S. exchanges, independent market makers and 


o' . 

f !' 1 

J- „..l- 


* l 

y •' : 

y ,'11 ■ 


option trading.. The need to 
give depth to the market by and the 
attracting more market makers dramatic, 
and floor brokers is the main 
obstacle facing it But the Tfifnf- 
success of the listing of the " vMAIl 

impact on the share prices 
options, could 

NO i 

options of the Dutch __ o_ __ | rr __ 

KIJI is perhaps a taste of the to ^ a j 0 j nt venture between ^tegories oTmembership. Seme traders, even report that floor brokers operating . for 
markets potential. the stock exchanges of British brokers were the public accounts for up to their own account - At present 

KLM has been the success Amsterdam and London. The ini tially reluctant to become gp per cent of their business, 
story of the EOE. The under- plan for twin trading floors fell direct members of the EOE. 
lying stock is traditionally through and Amsterdam although two, Joseph Sebag and fjr" 

highly volatile and h has long pressed on alone. When London \y. L'Carr and Sons, were repre- JtllllgCS.:_ 

been a popular share with U.S. realised that the Amsterdam se nted through offices abroad. 
investors. When- it announced venture would get off toe Ta^ w fth the Bank <rf-England - 

it would pay a dividend on the ground, a much more restricted with the Board of Trade “ r^reat^itent could finance independent floor 

1977-78 year after a seven-year options market was set up^on established that themoment SStoi**? M* brokers. It is a^-trying to 

market extend the number of European 


of the 

toe large banks are strongly 
-represented' in'these categories 
of membership but the EOE 
does not want to .be dominated 
EOE in by the banks in this way. It is 
smaller seeking to raise funds which 



gap trading really took off and the London exchange. 

&AJJ» L4 a mu ft iCfUlJ LUUIV UU CU1U „„ —_-- This dollar premium would not have K . • t pxtend me n umoer or jiunroean 

It has regularly topped the list failure to set up a joint operation t0 be paid on UK options and t0 0! members The number ofAJ S 

of most traded options. has led to strained relations ^ a fecial licence would not Nederiandsche ^ne^mDeroi 

The day after the presents- between the two exchanges, be needed under the Preventions Middenstandsbank has been P P d Ug 

in of the airline's annual although Dr. Bert Scholten, o£ Fraud Act W. L Carr and very positive ««ne of toe othera, at tot _expect«i ^anfl^u.S. 
report and the announcement managing director of the EOE, Sons, Joseph Sebag and Phillips Amsterdam-Rotterdam business is 

that it had started, the current is hopeful the two exchanges and Drew have now become pub- ^y e ¥ ben WJJJ temoOT^rilv better on toe other 

year well, trading increased will co-operate in the end. Prob- n c order members in their own This attitude gfd/of the^Atlantic. The EOE 

sharply and the EOE was forced lems in getting up-to-date prices ^ ^ ^ore appU- the independent traders on he ride pf the AflMric. The EOE 

to limit dealings in the options, for the underlying UK stocks— cations for membership froftT exchange who ask ^ an traders who are more 
It banned the writing of new ICX BP and GEC — have pre- uk firms are being-considered, banks have become members at P® _ . Eimmean 

r«_ _ rrontoH trorfinr tn these notions. (ra.-_ unv 4f..< n ,nin»inyi all if they are not entirely in fu oily committed to a European 






options for some of the most vented trading in these options, Tftg EOE took its-inspiration all If they are not entirely ^ . 

active series and restricted the however. from option trading in Ihe U.S. approval. The banks are clearly ex ang . 

size of transactions for public The need to share costs It must now establish its position hedging their bets. _ The EOE is still ..a long"way 

account. Following several—iniUal investment in the EOE with the Siecnrities Exphange The exchange h% held back o£f its break-even;point of/,tW0 

quiet days on which trading was FIs 15m ($5.4m) —and the Commission (SEC)' which over- from direct promotion of.itseu, contracts 9. day. It originally, 
volumes fell back to .the 500-600 difiBculty in sustaining- two sees option-trading on the five Preferring to leave this to its hoped to reach this point within 
contract level turnover rose to “European” exchanges along- US option exchanges. The members. Many banks ana the first year of trading. It is 
1,100 on July 5-^-the day of side each other mean some form moratorium imposed by the SEC stockbrokers have produced now more"cautious about 
imposition of limits—with KLM of co-operation is likely, accord- on any extension to option booklets to familiarise th® ir announcing performance targets, 
accounting for half of the totaL j n g to toe EOE.. As the trading in toe US. means no customers with the EOE. The But progress is being made and 
Before it opened on April 4 Amsterdam exchange expands immediate action can be taken exchange, does .plan however to if-a. few more-KLMs could be 
last, the EOE carried out exten-to list the options of shares but it is important for the EOE make a more active pitch Mo found the pace would quicken, 

sive studies of shares on Euro- quoted on other European stock to gain SEC approval. There attract more investors later this 

pean and U.S. stack exchanges exchanges London would run are limits, though, to the extent year, 

likely to provide the most attrac¬ 
tive options. It began with nine ■ 

useful and solid names which— . • 

with the exception of the three ... 

UK stocks—provided ■ moderate 
levels of turnover but which 
lacked any real “sex appeal.” 

Royal Dutch* Unilever and 
Philips as well as the three 
initial U.S. stocks—General 

Motors, Eastman -Kodak and ' .-, : l 

IBM—met all the necessary con- ^ Y V ! •... A ~ 

ditftms for option trading. The - Yl. v ■. ■ ri.v ■ t ’ - 

shares are widely held and as a source of new capital'toe : shape of the-pension -funds, V toe doilar^-washed over on to The .inflation rate continues to 
actively traded xrn their home pu ^ii c bond market in Holland-surance companies and the Amsterdam. The inevitable decline and at around 4 per 
markets and the quality of m- recovered sharply last year, savings institutions. reaction came in May and June: cent is now far less noticeably 

formation provided about their providing fi.62bn of new funds A t th* 9 sme.tim 4 » there a™'turnover in money terms Sowed cnit-'of line with West Germany 
"fries is high. But some of or 37 per cen t more than in n o initial costs of the -type tQ a galn of more t hap a (Holland’s::-, main - trading 
later listings—particularly 1976 Tbe rtate W as-the heaviest associated with nublic issues tento. as. yields moved.ba_ck:«p partner| than was the case a 
of the two banks, Amsterdam- b 0 IX 0 wer, taking up just under Sd bo^wera can mke up loads ^ 7 .what was always s^ ye^ or- so ago:; One nr two 

&“SrfSiHSS \T ' 1?!r ™ 

which doubled its demands on to 10 years, but in the private I jnrPSf 
the market and emerged with a. placement market maturities 

31 per cent share in the pool usually Tange between 10 -and 15 The latest constraints are 

of new money. . years with an occasional 25 year based on currency unrest and anythw 4 *2JJ5^5^ 

TWs year the first quarter offering if the borrower’s pedi- the problems currently assailing Jomf^ortibtourerrnhiV^n 

has opened with oewcepitai gree U in tietripie A teackeL the bond market in Frankfurt. 

raising of £425m. The foreign All this, and no need to get in which tends to be sometjung of surpl^ of F^M^iMn 

bond market was noticeably line -at toe central bank, a big brother to Amsterdam. 1977 thr^iS wU ^ iS 
active, but perhaps the most Tfr® other side of the coin is, Despite recent mewures to compare l to jp»j y g^jj ^ lp7 g 

striking statistic centred on toe moreover, not ali that di^d- toe ™ ASj. touK Slfi ' « 

Government, which significantly vantageous. Because of the hv the money simply could prove 

increased its demands on toe fubriantial ^ollateral that ^ Bomethlng' of^n internal pres- 

market. taMng up more te, 5° l K2f2 Point-in that it ^ doing. 

notbiztg to dampen Holland’s 



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Nationale Nederlanden insur- 

' Rembrandt and Saskia (1636). Rgtemuseum, Amsterdam”. 

Rembrandt country is Rabobankcountry. 


_embrandt found his inspiration in Holland, other m^JorEuropean cooperative banks. This, together 

yet created art with a worldwide appeal The Ccntraie with the support of London and Continental Bankers Ltd, 
Rabobank also finds its inspiration in Holland.- has strengthened our operations by giving International 

“ J ~ *’ I J ** * clients unparalleled on-the-spot service. 

yet increasingly provides services in the world at huge. 

With a strong agricultural background, 
the Ceatrale,Ra bobank heads a cooperati\-e 
banking organisation with over 3IOO offices and a 
combined balance sheet total exceeding 61 billion. 
Dutch guilders (in excess of US $ 26 billion) in 1977. 

This makes the Rabobank not just one of 
the largest banks in Holland and one of the 35 largest 
banks in die world, but also a bank with deep roots 
in almost all sectors of Dutch economic life. 

JL he Centrale Rabobank is now expanding 
worldwide with a full range of banking services. 

To accelerate this expansion, we recently co-founded 
the TJnico Banking Group", linking us with five 

Growth of balance sheet total 1 

and international activities. 

*7Z 73 *74 *75 *76 17 

In addition, we arc active 
in the Euro-currency and Euro¬ 
bond markets. Our international 
transactions in foreign currencies,. 
Euro-credit loans and 
participation in new issues, are 
showing a remarkable growth. 

Centrale Rabobank . International Division. 
Cathariinesingei 2a P.Q, Box 8QQS. Utrecht. 

The Netherlands, Telephone 030-362611. Telex 4020ft. 

Rabobank Q 

Dutch Masters in B anking . 

- doubts- are cur rently„- ,. being 

• expressed in financial circles 

• over official estimates; for the 
trade surplus this year! But 
despite a first quarter deficit 
of. FI . 1.02bn no one 
anything other than- another 

_ r _ to DM2Sbn the funds 

half of .the new mniw ra kwi market is more or less denied German banking system 

Tbe banks and toe^LSmS 1° ^ corporate sector. But in- ^ k ; 0 . b t ta ^ e f ^ u ^. e rdativdy high jevel^ 0 r. niirai- 

companies appeared to lose J^^“^ 0r th n Zoh aP ^ K bifl^e ^^ m^ plo ^^^ at ^^ 
some O'f tbeir anpetitie for 5 45 P us l ie ^ through toe remfl inc weak and nnrertain to he treading success- 

capital vr.i -floor by? economic sluggishness -* et remains weak and uncertain, f^y tightrope-between^ a 

(both inside and outside Hoi- The modest amount of new conservative fiscal- policy_ 

T_ • uril jaji iTV ^ MV ^*1 ih j |Uw (mu 

.-1 _ C0 2^ e lfr B -_«. Z land) and this is a market that paper being allowed on to the aimed at stabilising toe'g^der 

SvS? SJdIkTm the banks have, largely.ceased to Amsterdam , . market at the and lowering inflation rates- 

*Kn maricet dmid "j? 1 , . moment is being received com- and labour unrest at the lack 

hr2SftiTMWwr 11 15 hard t0 decide whether fortably enough. The recent.of economic activity. •' 

lwel^T^ Sj ^ bsence . °L a s “ ondai 7 mar - Fl75m offer toe ^ this , respect, _ . recent 

nKmetarv 18 °* a ****» *“ the insurance group saw maturity independent reviews of the 

^2? thl day 160 d ®y running of the narrow to just seven years. But economy—which have begun to 

JzSSi Private Placement market The this apparently was a straight- suggest that . gross national 

modestly higher interest costs forward piece of financial policy product can- only rise by 

to ° iper . ...rc clearly are not On -average a from the-company rather an between 2$ and-3 per cent this 

_ Private loan would cost around indication of the constraints- year—make gloomy reading for 

half a percentage point more upon the market Government ministers, particu- 

tban a similar loan in the public Broadly speaking, the ,arIy sln ce official estimates 
bond market- Adjusting for the economic parameters' at home "^ a T® . . had to be 

possibility of a longer maturity are mostly favourable. Institu- watered down recently. GNP is 

and, conceivably, the costs tional liquidity stands at a res- expected to grow by 3 per cent 

differential between public and pectable level and central bank ' tt “ y ,*** compared to 22 per 

considerable private capital raising shades watchfulness is not allowing the cent ^ 1977 - 

any surge tin toe economy, 
toe same time, what new tissue 
[.queue exists as being carefully 


Moreover, toe 

uncertainty present in foreign to three-eights of a point.. market to approach a situation .,to e 

_ __ „ 1 whole, however, 

exchange markets is dearly Quiet over the past few weeks, of overloading. Foreoasts for Holland’s inflationary and 
causing some potential bor- dealing volume in the public sharp growth In the public cyc ,, cai j patterns tend to fit in 

- - well with the global picture. 


rowers to hold off. The coral- bond market was running nearly' sector' borrowing requirement 
lary between toe guilder and 50 Per cent ahead after the first indicate a continued high level ‘ ? r ™e moment the 

its partners tin toe European half of 1978. March and April of 'Government borrowing this aa Tr,°- nt ^ es happy to see Qie 
hard currency dub is far and were particularly active as bond year, but not in amounts in comfortably 

■ "* « - European 


away toe most crucial influ^ice “arket advance# to .West Ger- excess of the market’s capacity. 
on Batch interest rates at “““F* and Switzerland—follow- The less technical factors . ■ n ^ y snaKe - .. 
the moanent After five years'* 1 ^ the fr^estment flight from make equally solid reading. . 
of negative impact, foreign 


capital inflows onto Amsterdam 
accounted for almost a tenth 
of toe net supply of new 
capital market funds dt 

As a source of new capital, 
-however, tbe public bonds 
remain heavily overshadi 
by toe private placement 
market Mines official statistics, 
this market is something .of a 
mystery. But the general con¬ 
sensus suggests that it is now 
between three and four- times 
the size of toe public bond 
market, and most banks report 
increasing business this year. 

Backed by a secondary mar¬ 
ket and visibly linked to central 
bank policy on interest rates, 
the public bond arena is in- 
disputedly the “price leader.” 
But the attractions of the pri¬ 
vate placement market are un¬ 
deniable. The supply of funds 
is almost; instant, with the 
banks—who tend to act purely 
as. intermediaries—quick to tap 

1 i . 

We offer you both commercial 
and merchant banking facilities ’. 


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SINGEL 540 _. 


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TEL. 020-264182 ‘ - TELEX 15717 ~; 

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i •: 

1 1 


Financial Times Wednesday July 19T978 

The Management Page 




DESPITE the current boom in UK assets as fixed assets In their balance 
leasing activity companies do not sheets. 

observe consistent, rules In the way 

Indeed, this very feature of “off 

they treat leased assets in their boohs, balance sheet” finance is one of the 
J . ! Michael LafFerty writes. attractions 

Oliff mil SI UP tO an anneal On lending (lessor) side, can be diffi 

partner a „ i ^ leading finance houses have different to apprecia 

established sdiLii buHriinf your partner) se « m io have methods of calculating profits, while pany’s final 
ness. We are now the oniv tw o strons grounds for disputing the most lessees (hirers) do not treat leased The A 
left to perform work required ins P ector ’ s apparent contention 

to be Uom*. One of our activities tijat arrangements are a m 

Ls the maintenance oF a block sbaxn - If you have not already H A • I ■ • 

of flais. owned by our wives done so, you should (each) give ■ riTl 111 FTW /VH 

jointly for the past 15 years. We notice of appeal against the ex- H | | | | | | | | | %h| 11 I 

charge market prices for the cessive schedule A assessments. ■ M ■ k. ■ Mlllll fcl. ti l Mil 

client done ' “ for any other You will find general guidance C*J 

BI Tho in.M.h, _ _ in the free booklet prepared by 

'tlTL 0 #s* r of , ^ axes has t ? ie Uiland Revenue on the taxa- a . . -h 

decided that the work done shall tion of income from real pro- ^ A | 

5"* char ««; as Schedule A. periy (IR27). and we ^uggeSt IIItA T W% 1 

r«2°#5I ,,er< ? 1 m > he P r °- that y Q“ ask the inspector to llll I I II 1 ft"* 1 

pe ij. and the wives have no send you a copy. If you have any 111 

Kh l .mW t ™ n . 0 “^“ ,mn8 u busU,ess - ft V fl * er Problems, it will make 
*™|“ “ * ot ordinary charges of it easier for us to help you if 
mjinienance be sllowpd 2 nd voil c an lgt 11 s tisvB 2 CODV of 

some allowance for administra- (or a verbatim extract from/the THE GROWTH in leasing in the in most lessees’ decisions to 

Michael LafFerty writes. 

On the lending (lessor) side, 

leading finance houses have different to appreciate the full extent of a corn- 

methods of calculating profits, while pany’s financial commitments. 

most lessees (hirers) do not treat leased The Accounting Standards Corn- 

attractions of leasing. As a result it 
can be difficult for readers of accounts 

mittee is planning to resolve some of 
these difficulties in two draft accounting 
standards due for publication as 
exposure drafts later this year. Despite, 
objections from finance companies it is 
widely expected that the ASC has made 

Indeed, the committee is currently 
engaged in discussions with the Inland 
Revenue to ensure that such action 
would not prejudice the availability of 
capital allowances to the lessors. 

PAUL RUTTERIAN has been closely 

up its mind that capitalisation of leased involved with the ASC's plans. In this 
assets will be required in lessee article he discusses the thinking behind 
accounts. Uie proposed new accounting rules. 

Instilling some accounting order 
into the world of leasing 

CrngHMoMiuni I urn**** 



year by year aver the life of strutting their subsidiaries to 
the asset. Since this does not use it. 

reflect rationally the wear and There arc still some problems 
tear of the asset, it highlights to be resolved both as regards 
the problem of showing the the method and the safeguards 

>ume allowance ror administra- (or a verbatim extract from) the vanuwin jn leasing in me in most lessees decisions to - - year uy year aver trie me 01 suucung ineir suo»iaianes in 

, tax inspector’s letters and notices last six years has been dramatic, lease rather than to buy out- nirFERPNT uiavc op TAiruur orofitq ON the asset - Since this does not use it. 

rrom the bare facts, you (and of assessment, etc. Figures produced by the Equip- right, it is not always the only uirrtntni V » MT=> immwu riwrno wiv reflect rationally the wear and There are still some problems 

ment Leasing Association show one. Traditionally, the account- LEASING lear of the assut - »t highlights lo be resolved both as regards 

"J^T ■ £ *111 an increase in the writing of ing for a lease has followed the the problem of showing the the method and the safeguards 

TII Tjl"0fA|*AT|r fc pi VlPIfi 1101*0 new busiDess Jrom £130m in ownership of the asset, the PRORT (£ after TAX) RECOGNISED BY A LESSOR ON A FIVE-YEAR asset as fixed in the leasing that are needed. One problem 
*7 *7 1972 to £675m in 1977; this lessor showing the asset in his LEASE company’s balance sheet. Some is that it assume* nit lea-e 

Recently I attended the Annual legally this was not possible SHJM'th appears to be con- balance sheet as a fixed a®set METHOD 1978 1979 1980 1981 1982 Average companies therefore show this rentals and tax savings from 

Genera) Meeting of a company because anv such navmenfs had These figures relate and the lessee merely account- 1. Straight line as a finance receivable, as in capital allowances are used in 

in which I am a cumulative to h I, . ,mmnjnv onJ y tD “finance” or “full pay- ing for the rentals when paid. 1055 . O*) 72 220 227 227 14s the U.S. reduce the investment in the 

preference shareholder. No divi- R . ‘ . out” leases where the lessor, Leasing therefore has been con- 1 nsU ’ befor « ... While most U.K. leasing com- lease. However, if the vmnpnny 

K’ElSTr' uS “ h SUa ^, afin “ h Ceh 0 S/“ f °7 h r ® s i? ere 2 * f0rm 0f 0 ff - b “ 1 T e 5- ™ HO “ - - !« panics use the actuarial melhncl ‘ s tu pay dividends. Ihe ca'h 

_ nH .J? “ ‘ 5.,,, “ yea1 ]? statement 9 1116 ful1 purchase price of the sheet finance, an aspect that has -n«. a h a «. /c non at tor financial reporting, almost musr eomc front these same 

an oviraU trading loss tor*tot The chairman was correct. undouMedly a . ffected tbe fin ®P^ ' a rental of 068 per quarter payable In adSa^for five year. aU u f a different method-the receipts so that it cannot all he 

current year. However, in the Preference shares even if cbar ® e from one customer, and mg decisions of companies which commencing January 1. 1978. The leasing company is.assumed to investment period method—fur used to reduce the in\osiinetil. 

consolidated balance-sheet there cumulative, only carry a right tberefore excludes the shorter have already borrowed heavily pay interest on borrowed money at 12 per cent per annum on calculating lease rentals to This problem can be overrnni.* 

was a large cash balance which to dividend, i.e. declared profit, term operating lease business. 0 r which expect to do so in the outstanding borrowings. quote to customers. by making the assn nipt inn that 

covered the cumulative arrears and the directors can carry sums This growth in leasing busi- not too-distant future. ^xh e problem with the Profits ate paid out by way 

and trading loss many times over to reserve without, or before, ness is largely attributable lo i t is this off-balance sheet ownership the debt/eouitv ratio come fisure each vear it also actuaria l method is that it uf dividend—»i. lengthening the 

entered into 38 vear* aeo states: renewals which are now i I-. --V . . t-ommiiiee laier tnis year wiu lease followed by profits in „ lurnim ivdsiug 15 mangiug 

114 The tenant ' underlikes to required. In practice the alinwanre^ ava^fahle tn^ them 1 if In ■ the LrK aI *° ther ® J * in ‘ require that the accounting for later years. If the company falls rapidly as tax allowances "big ticket" and longer term 
execute all interior decorations tenants’ need may compel them . . ®. ( o - t creasing recognition that in glance leases follows the sub- were to write more fprofitable) lease rentals are received, leasing'business being written, 

which may be necessary’to main- to carry out the work. . “ 1 ® y . °°Uoht ^neir new assets sU bstance finance lease is no stance and, therefore, that such leases, it would show greater and 111656 receipts are assumed Individual risks are becoming 

tain the property in good and outright, instead it is tound more than a form of finance, a leases be capitalised by the losses, whereas if it were to t0 be used t0 reduce the remain- larger and more care needs 10 

satisfactory repair and condition worthwhile ter lease the assets i Mn of money at interest Most ] essee . However, there are still cease writing new business, it in 8 investment. The effect is be taken about bad debt provi- 

and £L d " p « at ** termiim - Divesting S m i e f7nr P !l™ a ! Df ***** aDd r ® wa f d « ° f some, including a number of would appear to be more profit- f hal for a five-year lease the sions. especially where “tailor- 

1 \ iew water tank in the 6 ilnfn^that ownersbl P F 6 P assed t0 1116 leasing companies who believe able as the early loss years fell vestment period is under three made” leases stop the lessor 

domeshe hjt water system had- VAlir cHfirPC % le f?f bUt toe !i S ? r “ * S5ured it is wrong for lessees to in- out of account- The straight y 6a ™ and the entire income is passing on these risks to the 

to be’renewed reccntiv at a cost SflalCS favorable interest rates ^ey a full recovery of his capital out- c i ude i„ their balance sheet Une method therefore distorts taken to account in that period, customer. However, if prudence 

of about £40. Is this the respon- A charity company, limited by fSTIf ? t £ lUS f assets they do not and never the trend of a leasing com- At first sight, the method is exercised, and is seen to be 

sibiUty of the owner or the shares, has myself and one other of the funds invested subject ^ own pany - s results . appears insufficiently prudent exercised, in making provision 

tenant? as only directors and *hzre- only to the nsks generally asstv Most leasing companies use because it “front-ends” theforthecreditriskand.ifcom- 

Also the electrical systemiwlil holders. I wish to give npjjoto ““ 6bof ctat® d with any other secured • 1 an actuarial method similar to inw»me, but it reflects most panies provide for the cfTecls uf 

i^SS S5* 1 5AS Lontroversial that used by building societies fairly the basis on which man- interest and tax rale changes on 

wamiivt. UC tcpiicu uiai. uuuua uaue OI baairvs. ,_, „ cb j “ ~ , . , iwam, 19 uie umiga uiol vcmiucui iu Uic icdic m iis . --* 

leased to. and therefore used earlier and the issues had been borroW i n g ratios will be highest If the leasing company , S nore - The investment period If profit is taken early there 
■■■■■■ ■- . . by .- someone else. Many Indus- discussed for a much longer Ported. borrows the required finance method—an actuarial after-tax is the danger that much can 

I jHfinlnrn Stnrl ma nS;“tISSE penod t . be /? re , ^ Fl ^ aDC1 1 a i Iti* expected that the ex- from its parent, this straight method—is therefore used. This happen between recognising 

11 allU' IvlldilL^ years, found their taxable Accounting Standard No. 13 posure dr a f t d ue t0 b e issued line method normally shows reflects lease income as an even profit income and receiving tin* 

. . . . . ... .. . __ profits reduced by stock relief .eventually standardised the by Qj e Accounting Standards losses in the earlv years of a return on the cash invested in cash. Moreover, the pattern of 

entered S into^ 3 S^ears aM*states: reniZT whic?^^ now “couming ^eatoent cLSfttee taS Sfis year ^U !efs? followed ^ 'prefits in ^ 1 ™- The cash inverted leasing is changing with more 

'“The tenant 'undertakes to required. In practice the nUnwanre^ ava^ffhle to^them'if In 1110 ^ ^ ther f v , ? in ‘ require that the accounting for later years. If the company falls rapidly as tax allowances "big ticket" and longer term 
execute all interior decorations tenants’ need may compel them . . ®. ( ...... creasing recognition that in finance leases follows the sub- were to write more fprofitable) lease rentals are received. 1 easing* business being written. 

which may he necessary to main- to carry out the work. . Uley . dou^ii ineir new assets sU bstance finance lease is no stance and, therefore, that such leases, it would show greater and 111656 receipts are assumed Individual risks are becoming 

tain the property in good and outright, instead it is touna more than a form of finance, a leases be capitalised by the losses, whereas if it were to to be used to reduce the remain- larger and more care needs lo 

satisfactory repair and condition worthwhtie ter lease the assets ] Mn of money at interest Most lessee . However, there are still cease writing new business, it in E investment. The effect is be taken about bad debt provi- 

and *° r ** termiim - Divesting Df ***** aDd r * wa f ds ° f some, including a number of would appear to be more profit- f bal for a five-year lease the sions. especially where “tailor* 

1 \ ™ water tank in the 6 ilnfn^that ownersbl P F 6 Passed to the ]easin g companies who believe able as the early loss years fell investment period is under three made” leases stop the lessor 

domestic bot water system had- Villir chsiTPC t w bUt toe !l S ? r 15 * s ® urcd it is wrong for lessees to in- out of account The straight y6a « a « d the entire income is passing on these risks to the 

to be’renewed reccntiv at a cost jOnt SlidlcS favorable interest rates ttey a f u ]i recovery of his capital out- clude | n their balance sheet Une method therefore distorts taken to account in that period, customer. However, if prudence 

of about £40. Is this the respon- A charity company, limited by jSSJf'ij.* fSm 7 t£ lUS f ^ do not “** nev6r tbe ^nd of a leasing com- At first sight, the method is exercised, and is seen to lie 

sibiUty of the owner or the shares, has myself and one other of the funds invested subject ^ own pany - s results . appears insufficiently prudent exercised, in making provision 

tenant? as only directors and ftoaxe- °^l° ^ 6 ri5k * generally ass^ Most leasing companies use because it “front-ends” theforthecreditriskand.ifcom- 

Aiso the electrical system wUI holders. I wish to give up^both dC : b f w ? ^hnn St!f d rAnfrnvorciol an actuarial method similar to income, but it reflects most panies provide for the cfTocls uf 

shortly need rewiring Nothing these positions. Is It possible leasmg being cheaper tbao loan. If the substance is to_ be |^0DlT0VGrSI3J that used by building societies fairly the basis on which man- interest and tax rale changes on 

is said about this in the agree- for me to give np my sharehold- alternative forms of finance. accounted for, rather than just . anoortion renavments he agement decisions are taken At their investment period when 

menl. Who should bear the cost ing. placing the onus of finding the legal form, the lessee would The leasing companies are J . 0 “PPOttmn repayments he- agemeni decisions are taken. At ine r investment penua wnen 

involved? another (to preserTe the com- C „ k -v. capitXtiie leasedasset in his also concerned that if an tween interest and icapital ele- present very few 

The hot water system appears pany status) on the other share- SllDSldlsUlGS own balance sheet and show a Accounting Standard were to men J 5 ' .T^ “ etbod assumes a PUJM use this method for p^iod method would seem to e 

tn f;i!l within Section 32 of the holder” itnrrAcnmiHina tiahitirv fnr +hp reanire the lessee to canitalise constant return on funds financial reporting, although the best method for ASC to 

Housing Act 1961 and would have Y , ! Most of the leasing companies SlSfttoS^pa^tSe rentS^^ the asset^ the Irtiand Rethroughout the lease. In the Mercantile Credit, for example, choose. Whether these safe- 

been the landlord's responsibility d i reetor^iin* bv wri tten*?oti m are theraselves «u baidi anes of wmU? tifenbe would grant the capital allow* early P 311 of the Iea5e the does - W it were to be approved guards are adequate is a mailer 

(assuming that the original con- fhi compaoy-but th“shS£ld- banks * ^ te not sensing if JJprecSted^tiie Sme^ay a! m to the lessee rather than char e e 6 l 6 “ 6 nt in tbe by an accounting standard.more that the Accounting Standards 

tract uai tenancy was for a erm ™ c° a Xt he divested Sut 6116 considers the two principal Jg ”™" 1 Se fcSor SZt mU intetd rental is Iar § e but *''* declines leasifl S ^^P^i 65 would use it Committee is now considering. 

S DrantPi)*»fter tlm oa^TiE A A someone who wiU attributes a successful leasing S a Wow to toe k£u» lal 6 F- Th6 balanc6 6f tbe ren ‘ for f V ,anc5al reporting and_ 

of that Act. As the lease dates take a transfer of your shares, rempa^ must have—accos to coujjj more eas i]y be determined try, and to investment in the taI take “ t0 be a repayment while it has the support of the u Paul jj utteman is a partner 

from before 1961 the tenant . a ° d borrowing ratios more UK as a whole, but the £ f ** “f 1 * 8 ? sum and ? bown f h <,U, £ me lp nt Leasui ® ^ so « ati "n. m Arthur YounJ Me&bmd 

cannot rely on the statute unless * profits to be able to use all the fa j r j y shown. This is the Accounting Standards Commit- 5 y mo . sl Ieas, ° g companies as the banks are waiting for tbe Moores and Company, Chartered 

a fresh contractual tease was .. . . . . capital allowances arising from method ^ 1^3 bv FAS 13 in tee has indicated that hAfnrc depreciation, but this increases accounting standard before in- Accountants. 

entered into after 19bl. However, No legal respond Mi ty can be new business written. Leasing th us -j-j it has - 1 ™ been j., standarrl ic intTndiiced it -—----——- 

neither the hot water system nor accepted by. the Financial Time 1 subsidiaries have enabled tbe ™Slea^2 S tS ^ tho .• ; . 

the wiring falls with n the for the answers given in these han k; no t on lv to increase the a °?P l6a Dy a nui ?° 6r or leamng wUI take up the point with the . ■ ■ 

teiumla' repairing covenant columns. All inquiries will be ^anciil se^icJ ^ M^ d »™ue. - 

S^;Vp h roa“ e Ue d r reJ“o rt tt on D C P oSriSe° f tt? , l d n. «.«.<! ■ of fillflnfflAl efficifillCV 

Labour relations are excellent in Leicester, where have written leases purely as a ™on7nr the^ollao-^biitSJd her 1 "^ 3 

people still believe In working for what they want •»»•««,«•'Ml*« tbit ol tte rajw conMtaS used. The^m som7 ' AK&Blik ' 

— one reason why so many small firms have grown Sl e profits. but P the Inland ing faclors wa s the high gearing panies. although relatively few, JmSStSm 

to International stature there. i?* isohLninor «n nn wbicb left tbe group vulnerable which account for each instai- 5jfe-. - 

_ 25 ?en 2frt!l c ImfSiSr* to any significant economic ment of rental received as a ‘ x i ‘SumSK 

* John Brown fr ics bad never been intended that include long-term, non can- - ■ —. ——. . " | 

Labour relations are excellent in Leicester, where 
people still believe In working for what they want 
— one reason why so many small firms have grown 
to international stature there. 

> toe leasing indus- * uc »«■*«» v» me ieu- luicuiuai anu, -- 

investment in the *«> !* .I™ STS ZHHZlnX 'JSiS’ZZS!!,*' ^ p "“' i« « porlner 

whole, but the ? { ^ f a ^tal sum and shown Equipment Leasing Association, in 4rthur young McClelland 

Standards Commit- S y mo ftJeasing companies as the banks are waiting for the Moores and Company, Chartered 
icated that hofor*. depreciation, but this increases accounting standard before m- Accountants. _ 

d is introduced it . . . 

the point with the ’* 

nue. . 

‘Srs We’ll make you a model I 

iber of companies. • ■F 

HES-H oS financial ttficiency 

UlHc 3 rA nmcnntlir _ — - 

Enquiries to i 



pighlol Ihe centre 

Gordon K Smith ERICS 
Industrial Development Officer 
Telephone 0533 549922Ext.6/00 

John Brown FRICS 
Industrial Promotion Officer 
Telephone 0533 549922 Ext.6760 

Leicester City Estates Dept., 

New Walk Centre, 

Leicester LEI 6ZG. 

This uuKKUKemaot appeals as a matter of record oxdf. 

US$ 12700000.— 

people should be able to reduce liable lepses of nine BAC 1-11 - .., . 

their tax bills, by drawing off aircraft, two Tristars, their COStS that 

capital allowances on assets spares and other assets. Had 

unconnected in any real sense they been accounted for in nrri lincoan 

with their own business.” accordance with the substance o” UU 3 CCLI 

. While tax is a major factor rather than with the legal MB- 0. R, J. LEE. former execu- 

177 1 ■ ftive director of’ NUMAS, the 

management advisory service, 

. - ■ ■ — has asked^us to point out that 

several of the points quoted 
from the book High Perform- 

b « mmororrecord only. ance Management reviewed on 

this page on July 7, are 

attributed in the book to 
NUMAS. Mr. Lee is now an 

30000.— I I independent management I 


with the giaantoa of the 




Managed by: 





iMPAGNIE luxembourgeoisb 

l\UE development bank 

provided by: 







SODme S A 


June 1978 

Promotional and technical 
literature for export 
sales to the 

Arabic-speaking countries 
of the Middle East and Iran 
must be translated and typeset 
in the idiom and style 
the market demands, 
by specialists 


TELEPHONE; 01-947 3271 




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Financial Times 
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cost-effective management control. Get your financial 
planning straight by contacting DanBoxshall, ICL Dataskil 
Ltd, Reading Bridge House, Reading RG18PN or ring 

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The Computer Professionals 



Financial Times : Wednesday July 19 1978 



take 165 
ystal balls.. 

•mercsiirr.; to discover that A ... 

E. th, stockbrokers who , IlIch as 

those by the CBI. the De- 

i;k 1 b'. the 

have such an impressive output 

wh,ch re r™i,r.»ivT p issp*«“«'^ t ™*< '««»« 

Terns, and have to work out the oW J* perh > 1 P s * ' SS ^ 1 VJTG 
money by judgment, while C and and , market , surveys. For the 
l\ Their rivals, are self- business reader these may be Jar 
confessedly totally unscientific. more useful and relevant than 
T-: and Cu. the terror of the fixed macro-economic models, and to 
sr.te.wi market, describe their kn ™ " lial 13 available world- 
work :-.s - essentially monetarist wide. the sample sires and th? 
in character.” which is no lke . , w0 , u d K be . tovaluable. It 
<»rpr;se. while F and G use a would a lso b e h *«! d >' have a 
flow nr funds matrix, but the section on accessible models—the 
.only econometric model with a ones where you can feed in your 
-.!-"*nc monetarist interest is own assumptions and see what 
:ic.-J«Miiic. comes out. And some day some- 

Anart Irom showlns that the one—and why not Mr Cyriax?— 
Gill's well-remarked monetarism will do a Which? on forecasters, 
i* more a matter of faith than and tell us somethin? of their 
developed science, this kind of track record. Meanwhile the big 
information is not necessarily pink book, as it is likely to be 
a< relevant as it looks. Com- known, is a start, and raises one 
rulers can show no better further question. Why has 
judgment loan the men who run nobody done it before? 
them, and the rmht reaction if rfflinffl!( FnrrrfuU 

>our . .:\ouriie -.uru turns out to tiolccr j ^ctnmnjd. Famborouah. 
ii‘l> on two and a half men and iiuuukUm gum ti:u. aura. 

A time to boast, a time to view 

THE PAST fortnight has been old rose. It has, perhaps. 

, * T nrafpr in cut it haps as lovely as any are that flat flowor. *P 1c J ea K vos are fresh 

I would not hesitate to plant eg** * £ SrnSmd Star eaJjfold pair, Ferdinand Pichard and sob*, the. bush wiy tough 

tLTSL, rio u _ __ Ja nrtA TJfociilpnf rid SeZP. 

the time during which almost .weakened, them, though 1 have the York and Lancaster rose fim, rigb Ihe effects do ‘and President de Seze. Both an J ?5|?lh*7? n 5n™ oraii 1 ^* 

every keen gardener thinks his Inherited an old and unidentified aIJbough_ it^ does not live for This ma g M it quite reach a heigh? of some four feet J«!?i -JSSc « y b * 

visitors and so forth blocking up if you want to avoid this 15 white with a red smpe, uie 
the calendar afterwards. bother, grow the hybrid musks 

What they mean. In fact, is that or the modern hybrid shrubs _ annrklC TA HAY 

the pinks will be over and the such as Pink Grootendorst, other- GARDENS 1 UUM I 

orange blossom out of flower, wise, stop with the excellent 

The first batch of Petunias, quartered flowers on the newish gy ROBIN LANE FOX 

bought ready-made in boxes, will range bred by David Austin, 
need dead-heading and there wiU Albnghton, Wolverhampton. 


YOU MIGHT call it 2.093 men a bit of damp seaweed may well 
irving to arrive at a single view, be admiration rather than 
or 3. 4?S full-time equivalent eyes suspicion. As far as Britain is 
Trained on a far horizon. What concerned, the whole business 
Imj m fact arrived is the world's seemsL2.riS£" ' 

Sr*? and fairly comprehensive large-scale effort. Although it is. 
index uf economic forecasts*, all offer the U.S the most-forecast 
£ oil-worth of it. It is full of infor- fconomj-Inthe world, the whole 
m.iiion. smne of it odd, and every U* 1 . ei S P r 0 v? r fewe ? 

reader will have his own list of Pf°P»* i ba “ Dutch Central 

n P k"^“nd 0 ne.t' a dar"d a ^ thl d e pSn<" thwo"!^ 


s*t-t a— na S‘ a &r u s 

i his rescind ting a ndfnjstrat- bureau IS i ess than ^alf the size 
tog u«r:. has been compiled by f t he biggest commercial fore- 
.; r .r,c Cyriax. one-time economic Pa ° t a Resources ln“of the 

M-iUi- uf this newspaper, one- us vlia more than 3 qq fore . 
nr,ic consultant and now a lers on strength . 
iini>lish?r. and what he has . ~~ 

achicu-rl i-vcn with his first shot Since commercial forecasts are 

:s decidedly revealing. The fair1 ^ ® I mildew and J black-spot even resist disease__ 

t rouble with forecasts is that quarterly service is Quite a them weekly from like David Austin.’® heavenly pink 

wlu-n ihe figures are all arranged modest price, and some can nml« - - - - - - ." - - —' 

in neat tables, they look so to four figures in dollar*) the 
aiithr-nuiivc—even when there price of this index does not look 
!-■ a m aining to consumers, as too prohibitive, and it might be 
from nur own notably frank worth it to someone just to 
Y.,:jon:>l Institute of Economic discover who has the worlds 
•nil Social Research, that no entire t 30 ™* fleet on a com- 
tiTiire nliuuld be read as being puter, or has an econometric 
Mure pr'-cise than is implied in model of the copper industry ir 
Hi- l-.-xi. Wiili the big pink book, the North Sea. But m a sense 
can discover the figures th ,s drst ®“.°rt looks a Uttle 
behind jli.; figures—how- umnv narrow, and m a sense too all- 
:,?(:i ,-n (be staff, how many embracing. Mr. Cyriax has stuck 
•_fia.ilions in the model. ‘ to those who publish actual fore¬ 
casts rather than the Informa- 
p-t-i . m tion on which others may base 

ll CETBPi0ll tbeir own view of the future, (n 

“ a sense this has let too many 

Everjun? will no doubt be people in—it is hard to know, 

J»— 1 ,'led ;i> play at league tables, for example, on what criterion 
t.'ia- may u under at the temerity the stockbrokers were selected, 
i f ili«.* Wynne Gudlcy group at f 0 r almost any broker's circular 
|J.unit ridge, who propose an contains forecasts of some kind, 
c.onumic revolution on the on the other hand, one is frus- 
.-iivngth of a more ten part-time trated to find some important 
' ,:, h tond only quarter-time at organisations left out. 

•■h .:!i and 51 equations, when the 
-n futi-umcrs at the Treasury. 

aided by more than 600 WnHft-wiHp 
L-uvi.umns. produce the annual vvtjiLim »nut 

section on surveys — 

Both and well sot. Sccotod, of course, 

every keen gardener minus ms mnenten an old and uniaemmea auuuusa *l uu« m* "I t "Vhnw This makes it quite reach a heign? ot some mur feet andi s° old that i r can merely b e 

garden is worth looking at. yellow climber some 12 ft high very long at 1 ts best. 1 1 Is not not s : J sort of an(1 are about as much across. dat f d w jJ!f£ “JJ" .. ]l 

Thnsp invitations come mo way. which loses everv single leaF the same as the Rosa Mundt with a J. n ma » near the Ferdinand has the longer matches with big Gfcj-bluo 

I which the lists often muddle it which you «» wwaw ^“^uallv reoeating later in leaved Hosias most handsomely. 

The last few years have shown 
another, Robert Le Diablc, 

. . . — . - , its best. 1 was landed with 

with a deep ndandlathis spreading Provence rose as 
He is excellently scented and the a present from a connoisseur 
best, bushy buy among the wll0 ma( j e it hvs personal first 
family of Hybrid Perpetuals. choice. For two years it straggled 
These tend, otherwise, to be and bore flowers which were 
rather straggly. -Again, he is beautifully petalled but poorly 
well suited to a silverleafed coloured. Then came the past 
background. Artemisia Silver hot summer and the colouring, 

be too much black-spot on the ilnort «u ot whichi are scented u nor white, which Michaelmas Daisies. Fifty bushes Queen running prettily between as he promisedv pulled itself 

bare bushes of the old rosea for aud quite lovely. But they are J tdrd '.°°|'.T ed . a ir^nease’s do not go very far, so if you him at more or less the same together. Slate-purple, scarlet, 

anyone to handle, between Good- not striped aor do they have .stole of both in S P afford to mass them For their height He is too good. I think, rose-pink and pale grey run 

wood week and the customary those pale green leaves nor. in P ae F} and . Y.“. cb L“j® £ wfi n ere at fortnight in early July, do for only two or three bushes, as through petals which stand up- 
early autumn round of currency- most cases, the curious green obviously taital t<> gf° , j, ac ^ They combine his season is not short. Use him, right «n the centre and reflex at 

crises For * k * mnee nn rho hii/fa tha stems as we do nowadays. tor-.mis UUl * ...... 

especially the 
which makes 

magical. Are there any new ideas lrresisnoie feature. wwgj mv^eardetj’in purple-pink blotched varieties. H ig frKhly-opened flowers. Tteld breeder, nowadays, could repeat, 

here and how tart do you ,om .SJ1. you « turh to i old ". ”J* *‘ r n fi S^M OutVo" L ,ou ore rid of this rood from of four foet or so. aru For moot striped roses are the 

^Now jU?nof enough for me to noways. thougS SSSjBglE? “«u]y till October, you cub mltsculons . The centre is nn height of antique, fe.hicn. H 

repeat that most of tiiese old I would imagine ” ' '* rm " T *”‘ 

roses flower only once and revel would sell — 

Formulating promise 

ANOTHER SPATE of meetings Ascot and against^Moon Sammy ■ 
takes place today, with East at Newcastle, can find cornpen- 
Coast holidaymakers catered for sation in' the Playboy Boofc- 
at Yarmouth and Redcar. Racing makers Handicap (7.40). Revels- 
is invariably fun at Yarmouth ton would only have to repro- 
and several of the leading New- duce form shown when a close 
market tr ain ers use the course third to Gold' Song and SL 
to introduce good-class two-year- Terramar at the last meeting. 
0 jds here iir order to land the Savile 

Rumour has it that Formulate, Row. Handicap (8.10). 

_________________ Clearly, Miner’s Song was not 

fancied when he the last 
DAf^IMP meeting here. But his perforin-' 

KMvIlvU ance when finishing close fifth 

■v nADc «nr»u behind Go Total augured well 

BY DARE WIGAN for the future and I shall not 

_ be surprised if this colt by Pits- 

. kelly, trained by J. Sutcliffe at 

by Reform out of a mare by ^p$om, wins the Aylesbury 

Never Say Die, is one of the stakes (6.00). 

most promising young fillies in _ 

Henry Cecil’s yard, and that it 
would be unwise to oppose her 
in the Jellicoe Stakes (2.15). 

Later in the afternoon, Cecil 
saddles Palaver in the Cradock 
Handicap (345). and It is on the 
cards that this gelding by 
Crepello. who won at the last 
meeting here, will score again. 

At Redcar. Sockburn. a shade 
unfortunate to have been dis¬ 
qualified in his last race. Is sure 
to go well in tbe Petty Officer 
Handicap (3.00). Top Call, a 

6.00—Miner’s Song** 

7.40—King for a Day 

2.30—Top Cali 


2.15— Formulate 

3.15— Plektrndls 

3.45— Palaver* 

2.15— Saintly Princess 

2.45— Sovereign Acres 

4.45— Blue Drake 

BBC TV to spend 
£12m on drama 


A SIX-MONTH £12m drama Sean Sutton, BBC TV drama 
package was unveiled by the chief, yesterday. "Unfortunately 
filly bv“High Top. ran with su3- BBC yesterday which includes a they will have to wait in the 
dent promise on her initial out- seven-part adaptation for tele- queue.” 

ing at Yarmouth a fortnight ago vision of John Le Carre s Four recent winners of the 
to suggest that sbe may win the Tinker Tailor Soldier Spy. star- British Academy's Actor of the 
Ugthorpe Stakes (2.30). ring Alec Guinness and a double Year Award — John Hurt, Peter 

At Sandown this evening, bill of plays by Czech dissident Barkworth, Derek Jacobi and 
Heroic, who after a second to Vaclav Havel. Anthony Hopkins — will be seen 

Hatch over U miles here on The £22m is an increase on in new roles. Diana Rigg, Claire 
June 16 trotted up at Salisbury spending for the same period Bloom, Sean Phillips, Billie 
12 days later, appears to be of last year — but matches pre- Whitelaw, Helen Mirren and 
reasonably treated with 8st 31b vious spending only if inflation Dame Flora Robson will star in 
in the Playmate Handicap (7.05). is taken into account “We have a trilogy of classical Greek plays 
King For A Day. who deserves enough projects and good The package includes old 
a change of luck after his brave material t ospend at-least three favourites such as Df. Who and 
efforts against Noble QuiUo at times, that amount” said-Mr. All Creatures Great and SmalL 

■j- indicates programme in 
black and while. 

BBC 1 

fi.lii am Open University (Ultra 

H' Frequency only i. 10.55 
i. • id The Gillette Cup. 1.15 
pin News. 1.30 Fingerbobs. 1.55 
' .icircl: Th** Gillette Cup. 4.18 
News for England 
ii>vrnpr tendon). 421) Play School. 
' r.i. s - Cat. 3.10 N'ewsround 
I5.33 The Won'tblcs. 

3.Til New s 

5.53 N a lam wide (London 
S»»i:h-Easl only), 
li 2*1 N;il iitllto idc. 

B-50 The Wednesday Film: 11.55 News and Weather for 
“ Tarzan The Apeman.” Wales. 

o'ift Scotland—8^5 am Paddington. 

9 ' 25 ^ f sk company ^ BigVcfhnfStSe 

1003 jAnfiEMr- !7SSt 

Horse Show. fo _ seorland 

11.15 Mr. Smith’s Airship. tor scouana. 

11 -35 Weatherman/Regional Northern Ireland—U8-4J0 pm 

News. News. 5^54^0 Scene Around 

7.09 Don’t Ask Me. 

7.30 Coronation Street 
8.00 London Night Out 
9.00 Elkie and Co. 

10.00 News. 

10JO Best Sellers. 

Headline*. L25 Report Wales Headlines. 
2J0 Hooscpari;. 5J0 Crossroad a. I 
Report west. bJS Report Wales. «J0 
Father Dear Father. 

HTV Wales—Aa HTV General Service 

eieepu UHS Ponaivdao NewrtUion Y 

Clo*: Gerard Manley 
Hopkins poem read by 
Michael BurrelL 

AH IBA Regions as London 

West—As HTV General Serslcc except: 
1JB-L30 Report West Headlines. 6J5430 
Hepon West, 

AH Regions as BBC 1 except at Six. 1L55 News and Weather for eicept at the foUowui e times:— CfftTH^H 

th Wlo!!fSS£ g ?- n,eS: -^ n • T ^ \ r • • ANGUA llUD am Chte QuO. lMO The Stationary 

Wales—5.1 U-aJo pm Pen Drawer England—5^5-620 pm Look WJD m Friends of Man. UJO Shnply Ark. UJB Simply Sewing. UJ0 The emer 

and Byd. 5.55-6.20 Wales Today. 6-50 East (Norwich); Look North Sewing. 1US In Coarert UJ0 The of Nacton. US pm Newa and Road Report. 

Hcddiw. 7.15 Pawb Yn Ei Fro. (Leeds. Manchester Newcastle): ^S® 1- ® f Nation, izs pm AngUa New. zbo women Only, sjs Cartm. sjb 

7.40*8.10 Come Back Mrs. Noah. M^^day g^i^ghamh ESSST- ctf 

Today (Southampton); Spotlight 
South-West (Plymouth). 






I S; v >rt«iii.iii who guts around 


1 * jokes until silenced 

!(■ I 

S J.k.i i.> iL* .swindle church with 
l-h.vsiLMl ifainin.q (7) 

0 KriaMished back number was 
.iii.'Lkcn Hi. 4 1 

I! Uld •.iiinulc recorder is 

‘a’ service (4) W Firm pressure on one mem- 

(ound right Inside w •, T ^ re|1111 . s namc 

garment (7) 

3 Device suitable 

circumstances (9) 

5 Last word dunderhead has 
to change (5) 

6 Gerui out to disturb epicure 


7 Lets ice cream fall on cake 

(4. 5) 

10 Not at all distant (3. 4. 2) 

13 Contemplate a director having 
lo plan For future <4. 5) 


II Om'licl 
Rove) i S' 

for a 

,fi 21 fi ™ wd «»««p <*! 

IS Slick gone lo each beginner 22 Measure of liquid note (5) 

2?* I’aiit'oiis hatUc waged by 
jf'Uih leader (4i 
21 Dro^inps that could make 
i- irting more endurable (4. 6) 
3 ! Girl »n railway bird sanc- 
luary t7» 

"•I MTi'cleri walking in a London 
Line (7 1 

33 Make l«-.s superficial writer 
fnlLiw Svnls river (6l 
L'tJ Nriiclu on tidj hit of Ireland 

now n 

1 Note lo wander in trees (5) 

2 Industrial action m part of abroad (4, 3) 

Solution to Puzzle No. 3-721 

a H ra -w-: u- a rs -14 
H 0 0; 6 S- B 



US am Snmcthlofi DifTcrem. 10J0 llUO am SMppy. lo.oo Simply Sawing. 
Angling Today. HAS Baiucrk. 1LS5 The 114J5 lo Concert. 1X30 Tbe Piper of 
Adventures ot Parsley. 131 pm A TV Nacton. U0 pm Southern News and 
Newsdes*. 545 Happy Dars. 6JJ0 A TV weather. ZOO Housepvty. 545 Slnbad 
Today. Junior. 540 Crossroads (UM Day By 

Day. 1245 am Southern News Extra. 
BORDER 1Z4S Weather Forecast (allowed by Yes- 

1040 am Techncdaih. llUO Simply tcrda 5"* Toare - 

Sewing. 1X05 lo Concert. 1X30 The . _ 

Piper of Nacion. tX 2 D pm Border News. TV’NE TEES 

ZOO House pa ny. 545 The Rolf Hams am nje Good Word 1030 Wlld- 

^" n-L.y ? I ^ ofc * n,,m<J Wednesday. 1245 Ufe cinema. 10^0 Simply Sewing. UJB 
am Border News. In Concert. 1X35 The Piper ot Nacton. 

_—I-* 1 - 2D pm North East News. 2.00 Women 

CHANNEL 0n, y- S^5 Happy Days. (.00 Northern 

XU pm Channel Lunchtime News. (.00 Life. 1030 Landscape, lljm Best Sellers. 
Channel Nows. 64o The Beatles. 104B am Epilogue. 

Channel Late News and Weather. 1245 

am The Adventure world of Sir Edmund TJI CTCR 

"JSS 111 Losiwi^ 1030 Simply 

French followed by Epilogue. Sewing. 11.05 in Conceit. it « The 

. .. Piper or Nacion. X20 pm Lunchoroe. 

ORAMrlAlN (.u UImct News Headlines. 545 The 

SJS am First Thing. 1040 Wild Country Panners. (.00 Ulster News. (.05 Cross- 
10.00 Simply Sewing. UhS In Concen. roads 630 Reoons. b/B Witherspoon. 

1130 The Piper of Nacion. X2D pm 1030 Clauds or Gian. 1130 Bedtime. 

9*0 am A Place tn 1 iiv 05? Grampian News. 6.00 Cramplan Today. 

«Mn!. . L JX. zz 9 640 Police Newsroom (.15 Woody Wood- WF^TWlRD 

Catch 77. 10g0 Oscar. 10.30 The peefcer Show. 1245 am RedeeUaos. 17 m 

Flints tones. 1050 Nature Of Grampian Headlines. _ am , The Beachcombers. 

Things. 11.45 Cartoons. 12.00 

Cloppa Outle. 12.10 pm Hickory GRANADA hSmS« BiriX, ^ wSrv^ 

House. U2U Sounds Of Britain. 2025 am Sesame Street. 1X20 Sola One. Headlines. 54J Gambtr. bJOO Westward 

1.00 News plus FT Index. 1.20 1X«S Kathy's Quiz. 130 pm This Is Diary. 1038 Westward Late News. 1245 

Help! 140 Crown Court. 2JH) Your Right. 540 Whai's New. 5.15 am The Adventure World of Sir Edmund 

After Noon Racine, from Crossroads, too Granada Renons. (30 Hillary. 1230 Faith Por Ufe. 

h2£t «a MKJWnSS 1115 ?m A Ul,fe ' VARkQHTUP 

420 Michael Bentine's. Pott^Hine. *« J^SSfSSKInr. 1 x 10 

HIV i^wirs of the World. 1X35 Friends of 

e nn tv » 10 - 2a 2,71 "rile Last Islands. KJ.oa Simply Man. 130 pat Calendar M0 Calendar 

Thames al o. Sewing. 1XQ5 la Concert. 1130 The lEmley Moor and BeUnoni editions 1 . 1030 

6*35 Crossroads. Piper of Nacton. 130 Pm Report West The First Ten Years. 1X00 Best Sellers. 

BBC 2 

6.40 am Open University. 
11X35 Gharbar. 

11.00 Play School. 

4.15 pin Cricket. 

4.55 Open Uuls-ersity. 

7.00 News on 2 Headlines. 
7-05 Erica on Embroidery. 

7.15 An ABC of Music. 
7.30 News on 2. 

7.40 Rhythm on 2. 

8.10 Brass Tacks- 
9.00 Call My Bluff. 

9.39 Globe Theatre. 

10A5 Multi-Racial Britain. 
1U0 Late News. 

11.20 Cricket 

11 jO Closedowns reading. 


4.45 Shadows. 

S.45 News. 

5.15 Gambl 

RADIO 1 247m UX» Music MaRinc from Birmingham 630 My Music 'Si. 7J0 News. W6 The 

1^1 y II . «si Bach. PurerIL Handd, Joubart. 1X35 Archer*. 730 File Op 4. UR Pain:; A 

15J S^ophwitt tavadcast Copland and Sessions (Si. 12.15 pm City Way of Ufe. 130 Science Now 430 

___ .‘I”.. Bjrmbwbaia Symefioor ordteftra iSt KatekJowape. 931 Weather. 1030 Tbe 

5.00 am As Radio 2. 732 Dave Loo Part 1: Mozart. Bloch XDO News XOS World Tonlaht. 11X30 Round Britain Quiz. 
Travis. 430 Simon Bates. IXOO Tony CBSO iSi Part 2: Muionailtr. 130 Sons U-00 A Book at Bedtime. " The Secret 
Blackburn. 1230 pro Nwshcat. 12^5 Reciial (Si Debussy. Dunarc. Barber. Acwit." 1145 Tbe Financial World 
Paul Burnett. 230 Peter Powell. 031 235 Fcraande Kaeser fSi Plano recital. Tonlaht. 1130 Today in Parliament 
KM Juiscn inclndlns 530 Ncwsbeat. 730 340 Koussefflaky Com missions fS>. «30 1230 News. 1230-1233 am inshore Fore- 
Spona Deafc (Mins Radio 21. 10.00 John A • Clav E Pedal (Si. 4-45 Roeatni’S CW 

“S" Badio -■ s,ahat a,a,< -‘ r *S>- t 545 Homeward p R p j> 0 j- 

VHF Radies 1 and 3—5.00 am Wlih Round. t fcpg News. *4 tn Homeward tStSL. K3Q10 JLOTluOD 

Kafflo z. fncfudiits XK pm Good u«enma. Bound. K30 Lifelines- lm snare and 206m and 94 JS VHF 

y.. w *! h tod " 1 L 12.003.02 am Communjcadon. 7394130 An Even lee In 5.00 ^ As Radl0 2 jjo RMh Haur 
mm ruaio - Archives: 730 Solomon Piano red'a!. 0.00 London Live. pm Call In’ 

RADIO 2 1.500m and VHF A !’S u ^J OT ^f T1JCI ^ xao London News Desk, ini 

v c I- 20 The Ladder and the Tree. 0.S0 tot Showcase. 433 Home Ron. (30 Look. 

530 am News. 532 Richard Vaughan Oedipus Res. Onert oratorio, music hy stop Listnn 7.30 Rlarc- Londoners B30 

,S> with The Early Show. includlM (45 StraMnaky. 10.S0 Tbe Last Time I Met , n con^n u llie wm^tmCm 
for Thoanht. 732 Terry Wonn Henry James bv Sir Comotnn Mackenrn*. u30 am As Radio " n IK am nmwNnn 
Jnrfodine 837 Racing Suflctln. SJS » *> Ftanl Meefln*. 1X30 News 2235- xf^ i£a£r ^ QneMl0 " 

Pause ror Thought. 1032 Jimmy Youn* 1130 Toninht'a Schubert Song. _ - as rooio - 

1 S'. ItlS pm Waggoners' Walk. 1230 _ Wh 3 VHF antv—6.00-7.00 am and London BrOadcaStitlff 

Pete Murray's Open House iS» including 535-730 pm Open University. aniyitmt? 

135 Scons Desk. 230 David Hamilton n * niA a cnn , -blm B 11037.3 VHF 

iS» Including 235 and 3.45 Snorts Desk KAUlU 4 -"W Montlns Music. (30 AM wlrb 

yr"™' w ?^- ** Ssons Desk. 434m. 330m. 285m and VHF " n ^ D *«J as 11100 

X50 John Duim (SI Including S.C Sports (30 am News. (30 Farming Today Reports 

Desk (35 Sports Desk. 7.02 Sin* Some- (30 Today. 739 and ADO Ca ] e J * O’eta* Call 43B 

thiiu: Slmalc fSt. 730 Sports Desk. 733 gjo Headlines. 335 Vesterday In Parlia- EW,r wWl ,an 

Listen to ihe Ban! f$>. 8J5 SemmiiLl meol 9.00 N*\rs. ^.05 The Ltvlnt? WorW ^ if® Mjiullnp wtfTi Keith 

Serenade IS1. 532 The Fred Astaire A35 Over Here Over There 10.00 News ^Tralkley. 130 am Nlsbt Extra wild Allan 

SAW ffiSw a«B »Ss mm 2T pit aJ Radio 

335^“ ’SS'sSf ^YouTnO 194mnnd93.8 VHF 

2 . 00 - 2 .tQ >ours Summary. Yoar» 1227 The Spamfrlticr Man (Si. 6 ®> »™ Graham Dene's Breakraa Show 

R4DfO ? 464m. Stereo & VHF*? 2 ^ «>amrr. 130 The Worfd At One. # S»- «* KMuei Asuei tsi. 1230 Mfke 

X30 The Arrhers. UB Woman’s Hour ,Sl - 3Ba Pm Roger Scott ig). 

Y^uTvViLJL r^Vra H 7JH ’"'“'"rti'W 23WJB News. 235 Lisien With lm London Today iSi. 730 Adrian 

lof Mothir. X0Q KkwX 535 Afternoon if™* Ol»n Une (Si. 830 Nicky Horne's 

Ncws*^m TlS? iSS? J- S , ' a0 ?»***<*'■ 3-50 rthoral Erensong. a.3S Your Mother WouldnT Uke It (St. U3fl 

Bruno (Si (SmJS?SL . CMW i ? : !!,nr * T 1 "*- «■» PM Reports. 5.« Tony Uyatt's Laio Show «S>. 230 am 

Bnaen (Si. 9J0 Mnsic fbr Orson ISi. serondipity. 5L55 Weather. (30 News. Duncan Johnson Nlghr Flight iSi. 


CC—These theatres accept certain credit 
cards bv telephone or at me box offace. 


COLISEUM. Credit cards 240 S25B. 
Reservations 01-DSC 3161. ' 
1978-7B season from July 20. Bko oaed. 

(GantencharBe credit cants 83G 5903). 

Tonlsm and Tom or. at 730 ; Anastasia. 
Set. at 230 and 7.00 : Four Schumann 
Pieces. Divertissements. Cute Syncopations. 

Tue. next at 7.30; The Sieeplno Beauty. 

Frl. and Mon. next ai 730 : Norma <Fn. 
Bumbry replacm Caballe; Veesey reolaccs 
Bumbry. Lavlraea replaces Craig. July 24 
Bumbry reoiaces Cabana. Laviroen re¬ 
places Craig). Seat prices tor FH. and 
24 July reduced to schedule Si—rebates 
avail, after pert. 65 ampul’ seats avail, 
for aU party from 10 ant on day ot 

Untll Aug. 7 with toe, London Phil¬ 
harmonic Orchestra. Tonight. Frl. and 
Mon. nem et S.M ; Cosi Ian tutte. Tamor. 
and SaL at 6.15 : La Bohemc. Sun, and 
Tims next at 5.30 : The Rake 5 Pr i* Jr “ 
Possible returns only. 

bourne. Lewes. E. Sussex «0273 B1*.411). 
NJ. The curtains for Coal •*<)» rise « 
530 sharp. There is "O ooss>biliw ot 
•Omittance tor late comers.__ 

July 23 to *^ TS ^j yA The 5 * nsatK>n * 

Dance Company with GALINA end 
Dancing si every performance. 

S A?.Te3. 837 1 672 Last week. Eves. 
7.30. Mats. Sat. 2 30. 


Tonight : Triple Duel from <* rot «L.£?- 
ler*. Suite- Irom Sanctum Tom or . 
Gulgnol Stick Figures. Suite Irom Sanc¬ 
tum. Sheer ■ wiaerory - - 
not to be misaod. E. Newt, utterly 
utterly beautiful. . ■ ■ <Tf! a,1, .5lJJ!Sl?fI' 
July 31 -Aug 26 MARCEL MARCEAU. 


ADELPHI THtAIRE. CC. 01-B3S 7611. 
Ergs. 7-30. Mats. Thurs. 3.0 SaL 4.0. 
Of 1976. 1977 and 1970! 

.’lon& C n N J S^niWout.-. 

credit card"Bookings b 36 ran 

ALBERY. 036 3B70. Credit card bkgs. 

A -S 

L,o SL c , L vi^r s 


ALOWYCH. 036 640*. Info. 036 5332. 

In repertoire 
Today 2.00 and 7 30. 


"Emerges as a wanetetnl piece ol toont. 
The Times. With. CO RIOLAN US ttomor.) 
Low price Pre*s. premiere Steve Gooch s 


AND MARY READ (from 26 July) RSC 

•Iso at THE WAREHOUSE (see under W> 

and at The Ptcestfltlv Theatre In Iasr 3 
weeks Peter Nichols PRIVATES ON 

ALMOST FREE. 405 6224. Lunchtimes. 
One OK bv Boh Wilson. Tues.-Sjt. 
1.15 pm. Suns. 3.0 and 5.00 pm. No 
Shows on Monday. 

ALMOST FRET. 485 6224. Evenings. Kurt 

Vonnegult'S ''Player Plano” bv James 
Saunders. Tues.-Sat. 8.00 P.m. No shows 
Mondays. ' _•_ 

AMBASSADORS. . „ 01-036 1171. 

Nlghttv at 8.00. Matinees Tues 2.45. 

SarortUy al 5 and a. 


The World-Famous Thriller, 

Seeing the play again is In tact an 
otter and tota- ioy. Punch. Sew prices 
£2.00 to £4 00. Dinner and TOD-arlcc 
seat £7.50. 

11-437 2663. Ever 
S. 3.0D. Sat. SCO 

venings B.OO. 

and 8.00. 

Mats. Thun. . 


“Actor of the year.' Evening Standard. 

•' Wickedly hinny.”. Times. 

■’ Hilarious . . . sec it.” Sunday Time* 
Monday lo Thursday 8.30. Friday and 
Saturdays at 7.00 and 9.1 S.. 

ASTORIA THEATRE. Charing Cross Road. 

01-734 4291. Mon.-Thurs. 8 p.m. Frt. 
and Sat. 6.00 and 8.45. (Bullet lood 

ELVIS . . 

■■ Infectious, annealing, foot-srompinu and 
heart-tfiumnlng." Observer. Scats £2-0®- 
£6.00. Half-Hour before show best avail¬ 
able seats £3.00. Mon.-Thvrs. and frl- 

6 pm per) only. 



Julr SB 8.0 Opens Julv 27 al 
Sub. ergs. &.Q. Mats- Wed. 

Sat. 3.0. 


A New Play >v PhiiiiP Hayes yean. 


rings ROAD THEATRE. 352 7488. 
Mon. to Tfiur. 9.0. Fn_ Sat. 7jS0 9.4U. 


LONDON PALLADIUM. CC. 01-437 7375. 
Mon.-lues. Thurs. and Frl. at 8. 
Wed. ana Sats. at 6 10 end 8 50. 

in a Spectacular Comedy Kevue. 
Book mnw on not line 0T.A37 2DS5. 

LYRIC THEATRE. 01-437 3686. EW. 8.0. 
Mat. Thur. 3.O. Sat. 50) and 8.30. 


with Elizabeth Arcner & ■ revor Griftltbs. 
By Eduardo do FHfPPO 
Dirocted by FRANCO 2LFHRELLI. 

. - toKll trhjmph.” e». Nevn. 
: HUNDRED YEARS." Sunday Times. 
MAYFAIR. 629 3036. Evs. 8. SatT'sjo 
ana 8.30. Wm. h*at.-at 3.Q. 

MERMAIO. 248 7656. Restaurant 248 
2835. (venings 7.30 and 9.15. 


A plav for acton and orchestra by TDM 
MISS THIS Play.** s. Times. 

MERMAID. 01-240 7656. lR«t. 240 

2035). LUNCH TIMES July 17-28 (1.03 
pm- 1 .55 am) TODAY. MY SHAKESPEARE 
with SIR BERNARD MILES- 3.30 Sir 
Bernard MHes Illustrated Lecture “Elhra- 
oetnan London and Its Theatres. Price 
SOp lor each event. . 


ouvier lopen stagei - Today MS (red. 
or. mat. ■ and 7.30 THE COUNTRY 
WIFE by William Wycherley. Tomor.-7.30 
Macbe th. 

LYTTELTON - tprOSCemum ttftoei . Toot, 
and -Tomor 7.45 BEDROOM FARCE by 
Alan Ayckooorn. ■•”* ; 

COTTE5LOE (small auditor)ami. Ton’t- 
ang Tomor. 8 AMERICAN BUFFALO by 
David MameL • „. . 

. Many excellent cheap seats afT 3 theatres 
day ot pert. Car path. Rustanram.928 
2033. Credit OfB bkBL B28 3052. 

OLD VIC 920 7616 


- .June-Stmt season • _ . 

Eileen " Atkins. Brenda Bruce. Michael 

THE Salt's nS? fo^burning 
- hah .end buoyanL” Daily Telegraph. 
Today. Thirrs 7.30 

"an outstanding revival.” The Times. 
■Fri 7.30. Sat 2.30 . and 7-30 . . 

OPEN AIR. Regent'si Parte .Tel. 4BJJMS1 

Tomorow and Sat 2.30, andl7;4S--with 
Shaw'S MAN OF DESTlNY apd _ DAW 


PALACE. ^ CC. " 01-437'- 

Mon.-Thur.. 8-Q. Frt A 5lt . (.P «nd 8.40?* 
by Tim Rice and Andrew Llovd weboer. 


STRAND. 01-830 Z6S0. Erenuigs 8.00. 
Mat. Thurs. 3.00. Sat. S-za and B.30. 


GOOD SEATS Z4.00-C1.00. - 

ST, MARTIN'S. CC. 856 1 443 t*gs. 8.00. 
Matinee Tuns. 2.45. Saturoays 5 and 0. 
26tlt YEAR 

TALK OF THE TOWN. CC: 734 50S1. 
8.00. Dining. Dancing (Oars open 7.15). 
9.30 Super Revue 
and- at ~1i pm 



Evenings 7.30 Pm. 

bv.Nigel Baldwin.- . . 

VAUDEVILLE. S36 9988. CC. Ere. B.D0. 
Mat. Tues- -2.85. Sat. 9 and 8- : 

Dinah SHERIDAN. Dutde GRAY" 

-The newest wnodurntt bv Agatha Christie 
“ Re-enter Agatha with . inotner who. 
dunntt hit.-Agatha i Christ la is stalking the 

West End yet again with another P* her 

Benddhly Ingenious murocr - mysteries.” 

FeNx Barker. Evemnb News. : - 


S ^A roR H D AN J C°<^ : :> 


Euenlngi 7.30. Matsi .wed- add :Sat,-2.45. 

Garden. 036 E 

Theatre. CdveM 


■BDa. Roval ^hskesoes/c 
i .8-00. Peter fumurvt 

__IEMCMY. An gxcepllonal 

triavwrttlng dobuf.” F. notes. All seats 
£1.80. -Aa«. Bkgs Aidwych.... .Student 
Standby. £ 1 . ' : '■ 

WESTMINSTER. ___ . 07-B34 0288. 


“ MUGGER!DOE'S trenchant JJumour. 
THORNHILL'S dromatk- art- . .CUer.JtA. 
‘‘Intensely human, caring drama.” :Y* Pott 
Tremendous impact." now. - ‘‘l. w 
. shirply moved.” J. C. TYerriy*. 

Evas. 7.45. Mats. Wed. 1<00 SMS- 4-30. 

WHITEHALL.. 01-930. 6692r77^ 

Evas. 8.30. Frl. and Sat SAS^and^a.OOi 
Pent .Raymond - present* the. 

Twice Nightly B.OO and to. op... . 
«dav* 6 -OO^mu) AQO- ' tyT- 

Sundovt _ _ 





PHOENIX. 01-836 2294. Evenings 8.1 S. 
Friday and Saturoay b-00 and Ml. 
Garden ,maw. us laugh. D.-Mau. m 

The Hit Comedy bv ROVCE RYTON. 

"Laugh, why i thought i «Ould 
Have DIED." Sunday Tlmre SHEER 
DElIGHT." E. Standard "GLORIOUS 

PICCADILLY. 437 4S0B. Credit card bkgs. 

836 1971-3. B.30 B4n»0.3O • pan 

Evgs. 7,30. Sat. i-Jo4 B Wed. mats. J. 

Royal Shaksspeai* Companv Jh - 
by Peter nicihjJ* 

Ev. Std. Award and SWET Award . 

PRINCE EDWARD. CC (Tormeriv Crelnoi. 

01-437.6877. Perfoimanres t h )S,'MS 1 
Ergs. 8.0. Mat. Thur. 3.0. Sac. SjOOjiS.40. 

From JULV 22 Sats 5.0 and B:ao. 
From AUG. 3 Sets. XO and 840. 
and From SEPT^^ats. 3.0 and a.0. 

by Tim Rice and Andrew Lloyd Webber. 

PRINCE OF WALES. CC. 01-830 8681, » 8J » 5 

Directed bv GENE SAKS 

CAMBRIDGE. 836 60S6. Mon. to TJurj. 

8.00. Friday. Saturday* 5.45 and 8.30. 

Exciting Black African Muslral. 
"Packed with variety.” Diy. Mirror. 
Seat prices E2.0O-E5.S0. 

□Inner and Coo-price seat re 75 fnc. 

CHICHESTER. 0243 81312. 

Tonight and July 22 at 7.00 July 20 al 
20 and 21 at 7.00. Julv 22 at 2.00 

e«rrejt«ON. qjo 3?us cc. B3S 1071-3 
Evgs. 8 Sat*. S.SO. SJO Th»r< 3.00. 



■■VERY FUNNY.” Sun. Tel. 

DJtURY LANE. 01-856 8108. Every 
night 6. Matinee Wed. and Sat. 3.00. 

"A rare, devastating ievouy astonishing 
_ stunner." Sunday Times. 

DUCHFSS. _ 816 8243 Mon. to Thurs. 
SretMTO 8.00. Fri.. Sat. R *S and 3.00. 


Tno nudity Is stunning.” Dally Tel 
_ Wi Sensational Year 

DUKE OF YORK’S. 01.814 5122 

Evenings 8.00 Mar Wed.. Sat 3 00 
Limited Season, must end August 26 
In JulMn M hr hell's 

Brilliantly witty . . no one nhie-flr* 
mks it." Harold Hon«o« fDramai instant 
credit card reservations. Dinner and 
Too price sears E7 00. 

FORTUNE. RTS 723B. Evs. 8 no Thurs. 3. 

,, . Sat. 5 00 a«d 8 Oo. 

Muriel Pavlow as MW MARPLE In 
_ Third Great Year 

GLOBE THEATRE. 01 -4X7 1*92 

Erea 8.1IS Wrd. 3-0. Sat 6.0 B «0. 

"This must be the hanniesr ’-ughter- 
maker in Icmdan '■ D Tel. “ An lrr«-«*- 
ibl» eelevahl* evening.' SunOS* Times. 
GARRICK THEATRE. CC. 01.836 461 
Evs B.O Mai, Wed. 3.0. Sat. c 30 8.30 

Gdn. "NOT TO BE MISSED" Tlmes- 


Houghton's Matreroiese," Times. HINDLE 
WAKES '■ A real fine.'' Guardian. 

HAYMARKET. 930 9832. E«DS. P.00 
Wednesday 2.20. Saturday 4.30 ana 8.00. 

Harry Andrews 



A new Plav by RONAlD HARWOOD 
□iretrod bv CASPER WREOE 
' An admirable Plav nonest, well con¬ 
ceived. oroMrlv worked ant tresniv and 
fittingly written—rtcAly satisfying— Paul 
Scoketd at his best." 8. Levin. S. Times. 

QUEEN’S THEATRE. CC. 01-734 1166 
Evgs. 8.0. Wed 3.0 Sat. S.O. 8.30. 
In Alan Bennett'S 


Plav and Players London Crirtcs Award 

RAYMOND REVUFBAR. CC. 01-754 1691 

At 7.00 pm. 9 nm. 11 pm. Ooens Suns. 

PAUL RAYMOND pres-nts 
Fully air-conditioned 

REGENT. CC. o**ord Circus Tube 
01 -637 9862-3. 

Prevs. from 3rd Aug. Box Office open. 

ROYAL COURT. 01,-730 1745 Air rends 

Evenings 8 Sat. 8.S0. Last week. 

8111 Morrison's "Savage larre." F. Tima. 

Prevs. Irom ‘ulv 26. World Premiere ol 
ECLIPSE bv Letdh Jarkson. 

ROYALTY. Credit rsrds. 01-403 800 *. 
Mondav-Thursday evenings 8 00. Frdav 
5.30 and 8 45. Saturdays 3.00 and 8.00 
Londa. crltlrs vot« BILLY DANIELS In 
Best Musical in 1977 
Booking a Created. Malar credit cards. 

Soeciaf reduced rate* for matinees (for 
limited Period only). 

SAVOY THEATRE. 01-836 8888 


with JANE A3HIR 

TO SEE IT." Gdn 

Evgs at 8.0. Fri. and Sat. 5.45 8.45. - 

SHAFTESBURY. CC. 01-836 6S95 
Shafireburv Are WC2 (High Hoi born god) 
For a Sore al Summer resort 
. A New Production ol 

Seats Irem ei-LS. 

Best available seats at £2.50 ‘i-how 
before show from rnc Box Office. 
Mon .-Thur 8.15. Fri. 3 Sal 5-30 & R 30 

WYNOHaM'S. DI-836 2038. tjr*gd"'t*rd 
■ Bkgs. 836 1071-1 !rowi8,J0^a^i:Mpfl-- 
■Thor. 8.00 Frt. and Sat^ h,«5 »nd T30. 

".. -VERY FUNNV-” tremng News. 

' Mary O'Malley's tmasfeMt owiecnr .m 
" supreme cnnwir (ad .redgioftT 7 

‘“•JHAKE^'r^'sSSri -'wlTH 
AAUGHTER.’’.Gaanlian:. .. ■ 

YOUNG' vjci. 928 6363. Tpn’i ft. Tbpiot. * 
- pm.’HELEN .GOME" HOWE or ACItfUes «• 

Heel—“ 1*1 mafjro- mwatert. Tomof^ Fri. 

amt Sat. 7Mi HarmoiDmew -Fair. Young 
. Vic F*sthrai>->ast' 4 -dara.'- Phone Box 
■ Office tv .leaflet. 

aHEMAS : :.- ; . V,- 

ABC 1 "and 2 Shiwiesburv Ave. ^836 896L, 
Sep Peris. All seats hkW’v • ' 

1: 2001 1 A SPACE .ODYSSEY fUl 70mm 
Aim. Wfc. and Sun: 2.28, 7.55. 

and Sun- 2.00. 5.15. 8.1 S. 

CAMDEN PLAZA (OPR. Cipld on jo y." 
Tube). 4BS 2443. TavianPs ALLONSAN- 
FAN lAAi. tBy tho director o* PApR£ 

PADRONE) 2.50 4.45. 6JO 9.DO. 11.15 

CLASSIC 1. 2, 3. 4 Oxford Street Iff 
Tottenham Court Rd..Tube). 636 0310. 
U or A progs. Children- Hall-Price. 

1. Bruca Lee GAME OF DEATH t\). 
Progs Z.OO. 4.15. 6.30. B.4j. 

2. Wait Disney's HERBIE GOBS TO 
MONTE CARLO lUl. Progs. 1.30. 3 40. 

5. 55, 8.05 _ . . u _ 

3. Fin»l Day. Alan Bates. John Hurt. 
THE -SHOUT. <AA). Progs. 2-30. 4.55. 

6. dO. 8.4S. 

4. LEBANON . - . WHY 7 (Al. Arabic 
Dialogue. English subtitles. Progs 1.05. 
250 9.30. 6-10. 

CURZON. Curzon Street. W.1 499 3737. 
fPull Air Condtlionedi DSRSU UZALA 
■ U) in 70 mm fEnp"sn-sotF-titin.) A 
server “ MASTERPIECE." Ev: Newt. 
Film dally at 2.00 (not &un.i 5.00. 8 0- 

Richard Burton Roger Moore. R.cnard 
Harris. Hardr Kruger >r THE WILD 
GEESE lAAl Sec- progs. Wks. I 00. 
4 30. 6.10- Lxte snows Wed*.. Thurs- 
Fris and Sats. 11JS pm. Seats may M 
booked lh advance lor (Llo prog. ■ 

_ . _ 1930 6111J 

■ A). Sep. progs, dly. Doors open morn¬ 
ing Wow 11.00 (Not Sun.r. ■ 1st prop. 

I. 49 2na crog. 4JO. E»e. prog. 7AS. 
Late mght snows Man.-Sat. doart open 

II. IS o.m. All seats bkWt. ttcesf morn¬ 
ing snow and Mon. Late night show at 
tne Bax Office or by post. 

O Of ON. HaymirkcL 1930 2733-2771.) 
Jane Fonda. VanelM Redgrave lo * 
Fred Zimaicmunn him JULIA iAl. SCD. 
pre as. dly. 2.30 (Nor Sun.t, 9.45. 8.45. 
Future dly 2.45 (Not Sun.» 6.00 9.00- 
All seats bkfale it thHtre. 

ODEON. Marble Aim. W.2. i723 2011-2J 
KIND (A) Sep. prog*, div. Dcora or**™ 
1.05. 4.1S. 7.S5. L8T0 snow fri a«rt 
Sat. doers oonn 1 f.15 pjn. Aft lean 

PRINCE CHARLES. Left. Sa. 4l? 8181- 

Sea. ports, dlv. tlnel. Sun.l 2.45. 

9.00. Life show Fri. and Sat 11-43. 
Seals bkble. L't’d bar 



Commercial and Industrial Property 
Residential Property 

Business & Investment Opportunities, 
Corporation Loans, Production Capacity, 
Businesses for Sale/Wan ted 





£ ■ 



14.00 -. 


S.00 ■ 




16:00 7 





Erenmqs 7.30 Mat. Sat 2 . 30 85 ®stan?ev | Education, Motors. Contracts & Tenders, 

Personal, Gardening 
Hotels and-Travel 

Book Publishers — ,7.00 

Premium positions available 
(Minimum size 40 column cm&) ' ” 

£1.50 per single column cm. extra 

For furtHer details icrile to; . 

Classified Advertisement Manager. 
.Financial Times, 10, Cannon Street, EC4P 4BY. 

■ cjr-u^-^a 

*■ *"- „ - j rr.-M-- 

Financial Times Wednesday July 19 1978 

Tower of London 

Yeoman of the Guard 


sun^atherboyish Tommv*St an > d ^ tand has been periodically 
the attraction around^ 5 o e s,nce 1962) a marvellous place to 
the Citv of London f«< 1 stage a st0T y srt "i^in the con¬ 
trail titT DrSdu?Snn if al 5?* filies of ^ Tower The 

Yeoman of tfie ^uard * "I 0311 S u S£d as 311 a P proach road 

At the end of the first aP t 3 , °°| fi 8 «""Presenting 
when the execution nf SinnJi L ? onai L d MerpM gaHoPS on a 
Fairfax Mnnnt °._?A Co l 1 ? nel white horse with eventual news 


of _ __ 

because pla v5 e of ^ rF «’* repri^eTWith”c^ 

KaW. 1 " as an addi - 

S'Ss •;-? i"~ &rst. , S£ e fMr j 

Tom^y stf.i^ackpXwho " h ° Ie aCti0 ' 1 With “*■ 

Is left o n stage. anxious for bis Alexander Faris. conducting 
own future because of what he g° od control and judicious 
knows about the Colonel's secret pace » showe d his insight into 
marriage. this period and style. He con- 

The skilful stage direction oF sented (reluctantly. I suppose) 
Anthony Gesch ensures that such t0 lrujacate the overture, but he 
shifts or emphasis do no harm deluded several musical sections 
to the plot, any more than the generally cut in the theatre- To 
musical score is hurt hv the hear ^ soI ° * or Sergeant Meryl I 
upward transposition 0 f Jack “ A lau S hin 2 boy but yesterday 
Point's songs for Mr Steele's was t0 understand why Gilbert 
benefit. A tenor rather than the and Sullivan themselves 
usual baritone. Mr. Steeie sines su PPressed it in the cause of Dot 
decently, projects the words with ho,ding up the action, but I 
intelligence and performs the never fail t0 welcome the comic 
jester's capers in an attractive duet for Sergeant MeryJI and 
but by no means obtrusive wav Dame Carruthers, “Rapture, 
s Constantly on rhe go. he needs ra P turc “ 

: only to hold himself occasionally Terry Jenkins made a properly 
still {matching his colleagues) heroic Fairfax in voice and 
in the ensembles. manner. The other operatic 

Because Jack Point, like the parts—well sung, neatly charac- 
rest of what an older generation terlsed. but perhaps slightly 
called the “ Henry Lytton roles." underplayed for such a big- 
traditionally requires a scaled presentation—fell to Paul 
comedian who sings rather than Hudson (Sergeant Mery 11). 
a highly acomplisbed singer. Mr. Dennis Wicks (Shadbolt), David 
Steele did not seem out of place Feildsend (Leonard), Tom 
in an otherwise ope'ratic cast. McDouall (Lieutenant). Della 
The clarity of his and their words Jones (Phoebe), Hilary Western 
was often lost—perhaps inevit- (Kate) and Laureen Livingstone 
ably, because of their dependence as Elsie — 31 her best when 
of the spacing of microphones catching . the animation of 
At least (and this was an impor- Tommy Steele as her partner. A 
tant credit) Bob Auger's sound chorus over 50 strong made a 
system balanced the voices and Hvely impact, 
orchestra in a way which gave Fireworks (donated by the 
full value to Sullivan's scoring— Midland Bank) ended the open- 
as far as motor-horni and other ing night on Monday. Even 
passing noises permitted. without them, the show makes a 

Noises or not. the Tower itself capital festival event. 


Dunkley’s Law triumphant 


One way and another it has than a contest—it is nowadays more than any other is' bearing other people will say. 
been quite a week for television, none too easy to get a new out the Dunkley Theory of TV 'Of the two American entries, 
what with a new London TV festival established. Festivals (which will one day be the one so far shown (Mary 

festival opening, and then the BAFTA has managed to turned into a vast monograph White from ABC) recounts in 
Cabinet deciding that Britain attract 30 entries from 24 and pubUshed by Sociology Inc.), dr am atic form but at inordinate 
should have a new. sort of TV countries including China, Russia The essence of the theory is length the events of the last year 
channel—all in addition to the and America, and the handbook that broadcasting organisations in the life of the 16-year-old 
usual rash of news stories result- lists 30 foreign delegates (the enter for international prizes daughter of Kansas newspaper- 
ing from the week's programmes world's leading TV festival, the those programmes which Ulus- man William Allen White. The 
themselves. Prix Italia, attracts some 330). irate, most clearly the preconcep* society is portrayed as being in 

Despite the contempt for tele- parts bigoted and violent, but 

Della Jones and Dennis Wicks 

Lrouard Burt 

Covent Garden 

The Royal Ballet 


After some Jong weeks looking exultant in impulse, in her move¬ 
nt oltu*r i-ompanics, the return of ment. Imperious, magnificent, 
th.* Rnval Ballet to Covent Garden with eyes used as sensitively as 
,, n Monday from an American her arras, Monica Mason has 
tourniters saiutory reminder uf made the part her own in one 
standards of excellence. season. 

The sheer distinction and The ballet itself comprises 
umfor.iiiiiv of style shown hy the glorious score, superb sets, but it 
](i soloists who support Anthony has moments so lambently silly in 
Dowell in Four Sc humann Pieces Kaslchey's realm as his assorted 
is cause for rejoicing; they are minions quiver and collapse by 
well educated, well grouiued as numbers that they might well fit 
dancers, and thuy do much to Into the succeeding Concert. 
redeem this mooning, mono- were it not-for the concentration 
chrome, self-indulgent choreo- of Mason’s performance, the 
xrapliv. Dowell does a great deal splendid, rickety malice and en- 
iii ore. but the ballet was made for joy ment Derek Rencber brings to 
him. and his aristocracy of man- Kastchey, and David Drew’s 
ner. and the natural grace with noble simplicity as Ivan 
which he presents the dancing, Tsarevieh. They make the ballet 
c»en justify the piece—at least work, and we succumb to its 
in part. „ fairy-tale magic. 

The contrast between Dowell s Th e Concert, with its hallowed 
account uf the central role and casI of Lynn Seymour. Georgina 
Nureyev's. last week with the Parkinson. Michael Coleman. 
Dutch National Ballet, is fas- produced more laughler in the 
ciuuting. Nureyev's was in every house than 1 have heard before. 
ujv a conscious performance; The amusement was merired: the 
l)o\vcl! sails through it with an artists were in tremendous form, 
an- of divine right. In such a w itb Seymour disposing of an 
small matter as the fifth post- extra hand and slumping under 
turns which the lead dancer must her blue bonnet like the Bem- 
take up, Nureyev's sharpness in hardt of Bow. Street, and Geor- 
.,'jacm? was as if he must seize gj na Parkinson and her five 
on to the position to reassure us accomplices gloriously funny in 
of hts identity as a classical disasters of the' wronp-step 
d incur- Dowell at the same waltz. Welcome home. Royal 
moment appears at ease, as he Ballet, 
dues, superbly, throughout ttos 
.sudden tribute to bl J n - 

fixed for March 

The performance of The tmr 

bird which formed the centre ot Mikhail Pletnyev, winner «f 
the programme was dedicated to y, e jgys Moscow International 
the memory of. Tamare Piano Competition, will make his 
Karsavina, the first Firebird, in 5 ^^ debut at the Royal 
Monica Mason, the Firebird or Fes(ivaI Hall, London, on 
the evening, we had a wonuy March 26. 

inheritor of this laving role. ^ 2 i-yeais)ld pianist will 

showed the mighty beat of ^ u, e . performance Of 

wing* "that ,^ in he 'J ked ^ Chaikovsky’s Plano Concerto 
Karsavina. With . ner grano which won the competi- 

j it nip. and that muneamty wjwjj - ^ The fallowing evening 
sustains her every step. Pietnvev will give a solo recital 

enmmands tfie role as she does ^^^Q^een llizobeth Hall. 

,h ™ ™„v or her« 


vision expressed so regularly in 
some parts of the popular Press, 
it is noticeable that more and 
more column-inches are devoted 
to news of-- the competing 
medium: Angela’s heartbeats, 
Bruce's new contract with the 
opposition, or the selling of the 
Crossroads format to the Ameri¬ 
cans (who were certainly due to 
take some-British rubbish after 
all the years of buying our best 
quality materia] and sending 
back Peyton Place and The 
Waltons in return)—all receive 
on the news pages quantities of ; 
attention quite remarkable for' 
subjects wbicb are treated with 
such scorn elsewhere in the very 
same publications. But I 
digress . . . 

The news finally leaking out 
that the forthcoming -White 
Paper on broadcasting will after 
the Cabinet's second thoughts 
call for a new Open Broadcasting 
Authority <OBA> to run our 
fourth channel like a publishing 
operation, is very heartening for 
anyone whose main concern is 
the actual programmes appear¬ 
ing in our sitting rooms. 

Although the Annao Com¬ 
mittee had plumped for this in 
their report it had seemed that 
among the politicians a combina¬ 
tion of confusion, inertia and 
fierce lobbying from commercial 
television had succeeded in turn¬ 
ing (be Government against the 
recommendation of its own 
committee and persuaded .them 
to give the channel to ITV 

Britain as others see us: Bob Hoskins as Arthur Parker in “ Pennies 
from Heaven.” one of Britain's entries in the first International 
Television Festival to be organised by BAFT A 

Mary White herself is the pure, 
upstanding. honest, gritty 
idealist who fights against segre¬ 
gation and tells the WASP 
charity ladies that they should 
□ot just supply Christmas dinner 
for the poor, but eat it with them 

CTV Canada is optimistically 
trying for a prize with a pro¬ 
gramme the accuracy of whose 
title — Circus — is as deadly as 
everything else about it. The 
only .possible reason for pretend¬ 
ing that it contributes anything 
original to the art or technique 
of television is that instead of 
just giving you the same old 
elephants, liberty horses and 
downs that you get on television 
every Bank Holiday, they have 
tacked on a couple of pop 
singers. Could this reflect a 
Canadian belief that foreigners 
see the country' as preserving the 
best of the old while adding judi¬ 
cious quantities of the new. thus 
further fulfilling the Dunkley 

Perhaps the theory does come 
adrift a little with Jugoslavia's 
offering called Woman On A 
Rock, a short, cool introspective 
and poignant piece about a sun¬ 
bathing middle-aged opera singer 
musing on the vibrancy of youth 
and the irresistibleness of old 
age. Then again perhaps it 

Certainly Hungary's ponderous 
version of Richard Til, shot in 
monochrome and almost entirely 
in massive closeup (for as long 
as 1 could bear to watch, anyway) 


instead, thus locking Britain’s The Princess Anne Theatre in tions which they believe 6 aVe indi catio ns of trying to jive 

television system for decades which entries are being screened foreigners harbour about their U P *? a supposed Hungarian idea) 

into an even more debilitating fe j t pretty cavernous and under- country. of “tense artistic endeavour, 

ratings war. nonutatMt WO0 v on n«r LT _. . „ _ which would come as no surprise 

The great thing about the OBA §em or the 200 seaipermanently Ohm'S,?" t Sm^is f jad'd“ .“? yone in > he 

‘ 7™ 

n h e°!f»w t ro. i 3£ £& b ” n v — sgftiBtt 

programmes Instead of theopen- NewTV festivals obviously P^SglL ? 1 mas ! e-myff ebyfarlnthe first 

lo g gghf-B™. 10 w hTe? k r^s SSLS hfiqtoMP- du-»r opening' episode of a JapUse 


be the result of giving the firmly until major 
fourth channel to the present start selecting your festival as 
commercial set-up. We still can- flrst choice for their best new 
not count on the OBA, of course: work, and they won’t do that 
even if it is not scuttled by a until you are well established. 

Conservative election victory, it BAFTA may have to taxi along 
will still take years to find the through several thin years before 
funds and Instal the trans- {he festival really takes o£T. 
miners. Yet m principle alone Meanwhile, the international 
the decision is welcome. seven-man jury chaired by 

ie result of * eirinelhe « i "“hi e 2jHL* h -iSSS! Atiantic and the ubiquity of Water Maw hokum of the very 

*_ . unt31 major .Producers the ocean in the lives of the slickest sort, it has inspired me 

fishing people. to i 00 k at the small quantity of 

Britain's own entries are the material of a nearly similar 
first episode of ITV’s Hard Times, nature shown on British tele¬ 
set in the 19th century of course, vision and will form the basis of 
and providing a vivid picture of a future article, 
a society riven by class and Finally, still on the subject of 
privilege: and episode five of the festivals, keen readers of this 

BBC’s Pennies From Heaven, a column may be interested to 

Bv a rather similar mken the' 'fn™Yr'ho *nf drama set between the wars and know that I will not have to eat 

principle of ^he first Inter TwSilfen? Sit? dm! P rovidiD S a general view of a my article of June 21: Mac- 

p c pie Of the first Inter BBC Televisions arts pro- cn .., a ur riven b y class and millan’s Mayerling has indeed 

natinnal Television Festival to ZZ.~. _' j ' _r nveu oy viabs ana miLians wayerLing Das inaeea 

be oreanised hv the ^Rritish nF P nvile 8 e and “ particular a pic- been entered not just for a 

AcariemvTfFiimanriTeTeviS Rb ?-° S ’ SS! ture 01 the ,ower midd!e class but for the festival—it is 

Arts d nowunderwI!in^RAPTA*! Inakj ? g ^5 if-hfelT pre occupied with manners of ITV’s music entry in September’s 

, . -— - —— programmes — 

to bg welcomed. Since British most original contribution to 
broadcasters walk off with so the art and’ technique of tele- 
many .golden thises and silver vision" without any regard to 
thats from other countries' categories. Thus documentaries 
festivals (one highly successful compete against dramas, and 

In At The Death 


T once saw the final Saturday Wilson take bizarre headlines as 
matinee of an ill-fated West End springboards to joyful little 
thriller, In At The Death, star- exercises in stylish fantasy, 
ring Jean Kent and Charles Mr. Hutchinson gives us a 
Stapley. This is noL that, but a farcical Belfast household where 
ragbag collection of gruesome zealous sectarianism is a cloak 
“ Living Newspaper" stories. Six far a compensation racket tn 
authors have responded to the subsidise a young girl’s partici- 
sort of macabre, li dilatory pat ion in a Ruby Murray look- 
material published on the front alike contest: Mr. Campbell's 
page of Monday's Dnilp Muff, contribution recounts the zany 
where the death of a motorcycle embarrassment of a rocking 
stuntman provided light relief revivalist preacher by an 
from Soviet dissidents and Presi- anarchic rival whose theory of 
deot Carter in Bonn. In evolution suggests that the lesser 
“Ghouls." by Dusty Hughes, we hairy ape was infested by a 
meet a group of lobotomised plague uf pesky, humanising 
disaster groupies comparing insects; and Mr. Wilson closes 
notes on Aberfan. Moorgate, the show with a strange tale uf a 
Taunton a ad Flixbnrougb at the dead miner shining his light in 
scene of an aeroplane crash. the kitchen sink before luring a 

Described thus baldly, the distressed widow to an eerily 
sketch might be considered to luscious underworld, 
be in bad taste, if not downright The imaginative force of these 
offensive, but it also says some- sketches elicits some beautifully 
thing serious about our awful attuned playing from Clive 
curiosity in others' misfortunes Merrison. Julie Walters. Philip 
and the media's eagerness to Jackson. Alison Fiske and God- 
feed it. The theatre can usefully frey Jackman. There jre some 
operate as an investigative unsent songs and sketches hy 
irritant in such matters of Victoria Wood, a performer new 
private taste and public respon- to me and a delightful discovery, 
sibility. Not all of the revue mixing a direct, earthy comedy 
functions in this difficult border- style with a winning way at the 
line territory, as such diversely keyboards. The director of an 
talented writers as Ron Hutchin- interesting, ambitious cuuipila- 
son, Ken Campbell and Snoo tion is Dusty Hughes. 

Stationers’ Hall 

Julian Bream 


The official activities of this superb Dnwland Fantasia was 
year's City of London Festival not drawn logether with bis 
were inaugurated on Monday usual command. But once he 
with The Yeoman of the Guard transferred to the guitar. Bream 
in the moat of the Tower of produced some of the deliciously 
London and with a sedate recital precise shadings of tone and 
in-the Stationers' Hall. Warwick phrasing which we expect: a 
Lane, by Julian Bream. Bach Prelude (ironically, as he 

Bream was. as ever, generous pointed out. for lute) went 
with his programme. He in- beautifully, and even in the 
eluded two substantial works by ,i en ofay banalities of Paganini's 
Sir Lennox Berkeley (who was sonata in A there was much 
present) in honour of the com- t0 a< j m ire. Us last movement was 


and the Sonatina Op 51 which ™^ sb f* r 
Berkeley wrote for Bream in r °[ ma „ bt p “ ’ „ bu ' K ,n'. 

1958. There was the inevitable antral Romance was subtij 
Villa-Lobos and. in the first half, coloured, 
a mixture of music for lule and The Stationers' Hall proved 
guitar by Byrd. Molinaro. Dow- ideal for guitar sound, with its 
land. Bach and Paganini. intimate size and resonant wood 

I have the feeling that Bream panelling, but for many of the 
is not at his happiest on these audience the sight lines were 
highly formal occasions; he poor. The concert was generously 
would be more content to rip sponsored by Sedgwick Forbes 
off his bow tie. tell a few jokes. Holdings: with 400 or so of us 
and play to a few friends over paying £5 a ticket to hear a 
a drink. A couple of stumbles solo artist (even allowing Tor 
at the start of a Byrd Pavan. the glass of wine). V presume 
and a snatched chord in a their sponsorship was not so 
Molinaro Saiturello showed a much deficit-financing as profit- 
rare unease, and even the raising. 

and blast British producer has 
lost count of the Golden Bears, 
Silver Swallows and so on that 
he has won. and refers to them 
collectively as “zinc stoats") it 
always did seem a little unfair 
that nobody In this country 
offered to return the compliment. 

current afFairs programmes 
against ballets. 

Having acted periodically as 
juror myself for TV awards 
judged by category, and having 
had great difficulty in choosing a 
drama winner from. say. a very 
expensive 35-mm film shot on 

Pletnyev debut 

The trouble is that precisely location and a rather cheap 
because there are so many other videotape shot in studio. I can 
festivals, from Berlin to Buenos see both the attractions and 
Aires and Monte Carlo to the difficulties of abandoning 
Montreux—not to mention the categories altogether. We shall 
Edinburgh International TV discover the results when the 
Festival which has grown into BAFTA winners are announced 
such a success in only two years, on Friday night, 
though it is a talk-fest rather In the meantime, this festival 

Open Air, Regents Park 

Shaw double-bill 

_ Shaw makes a welcome change it is only there to bring the 
at the Open Air Theatre, where characters^ on^stage. Once there 
in earlier days he once wrote a 
piece for its special use. The 
two plays that make up the even¬ 
ing are not of equal merit by a 
very long way; The Man of Des¬ 
tiny is an ingenious exercise in 
the use of deceit, with characters 
that have a good deal of huma¬ 
nity, in them, but The Dark Lady 

of the Sonnets is one of Shaw's to prevent his being there. 

aracters are puppets. f()r ^ mosi paft . and nQW we 

. Napoleon, in the first play, is have a national theatre whether 
no kind of portrait of that great we like it or noL But “ send 
captain; he is any self-confident ’em out laughing' 1 ' is still a good 
soldier necessary for the plot principle, and the cultured 
about the girl spy and the audience around me, most of 
arrogant young lieutenant. Ian whom seemed to be having a 
Talbot strikes some Napoleonic night off from fte National 
attitudes from rime to time, but Theatre with capital initials, 
they are just a bonus to bis per- picked up the Shakespearian 
fonnance. As the young lady who references unfailingly and 
steals the despatches From the laughed like anything 
lieutenant, Maria Aitken gives a 

“ d. A. TUUNG 

— and the Dark Lady is not 
there very long — the conver¬ 
sation is mostly about the func¬ 
tion and the value of the drama- 
Very theatrical conversation it 
is. too. so much so that Shakes¬ 
peare is constantly bringing out 
his tables and setting down some 
observation by the Queen nr by 
the Beefeater whose job it was 

Peter Diamand 

luminous display of womanly 
double-talk; she and Napoleon 
score points off one another as 
fetchingly as if they stood oppo¬ 
site oae another at Wimbledon, 
and Miss Aitken has a bonus of f oi-pc nypr I? PO 
her own when she comes on in a VOXi.vsO \J v l\i vJ 
to' b*u her Mr Peter Diamsni airector 
to perfection. 0 f the Edinburgh Festival since 

There is no very serious 1965, has been appointed general 
argument in the play, but Shaw manager and a director of the 
has fun discussing the middle Royal Philharmonic Orchestra 
classes, and the nature of from October 1. 
courage, and the qualities of the Ar a rece ption yesterday to 
English, and its fun for us too. the occasion, Mr. Diamand 
The melodramatic plot.serves spoke of the difficulties faring 
only to support the enjoyab e London Orchestras, including 
talk, but it is ingeniously finance and rehearsal facilities, 
worked out all the same. Clive . . ., . . 

Carter gives the young lieu- ^ at 

tenant all.the required aristo- orchestras maintain a standard 
cratic impudence and Keith “ at T ls one ofthemain reasons 
Vanxier makes as much of the 'forLondon being the music capi- 
landlord (who has some pretty Europe, if nflt of the 

wise observations of his own to WOrld * he 5aI(L 
make) as Shaw offers. The Hr. Diamand, a Dutch citi- 
director is Richard Digby Day. zen, has been director of the 
The Dark Lady of the Sonnets Edinburgh Festival more than 

(directed bv . Christopher t * 1 * 6 35 1 2 £ 8 afiy 0? 1118 pre r 
Biggins) is no more than a pao decessors. Previously he had been 

pbiet calling for the stablishment °iqSf ?» 1!aad 

of a national theatre. There is JSSLS? il 
a tiny anecdote at Its centre ™ S,, dn £' w,th 

about Shakespeare encountering J?5_» he t L °-£ 

QiZ 6 $n Elizabeth wb?D be should ft&thsrl&iids Chamber 

have been meeting Mary Fitton Orchestra. 

(whom Shaw, who had not read He will continue to act as an 
the works of A. L. Rowse, be- artistic adviser to the Orchestra 
lieved to be the Dark Lady), but de Paris. 

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The international insurance group. 

The true cost 
of gas 

taken of the way in which the 
Gas Corporation has chosen to 
calculate its profits, the figures 
it announced yesterday may 
strike many people as being 
somewhat on the high side. The 
reported profit of flSOm after 
charging interest and current 
cost depreciation and after 
writing off the last tranche of 
the costs of converting the 
industry to natural gas is equiva¬ 
lent 10 a return of 7 per cent 
on turnover. This is a notable 
figure for any organisation 
which. like most other 
nationalised industries, js 
financed entirely on the basis 
iir loan capital and which is 
also providing for the full 
current replacement cnst of its 
fixed assets. 

However. several points 
should be borne in mind in 
judging the corporation's per¬ 
formance. One is its rapidly 
changing cost structure. Up to 
now. British Gas has been enjoy¬ 
ing the benefit of the relatively 
low-rosi gas snpniied under 
long -1 erm contracts from the 
southern basin of the North Sea 
hut these are now being steadily 
supplanted by the newer and 
more expensive xupnlies from 
northern fields. Tn the present 
year, for instance, almost a 
nuarter of the corporation’s pur¬ 
chases ore expected to he drawn 
from the northern basin, as 
against onlv 7 per cpnt last 
year, and tlii? is expected to 
raise the overall cost per therm 
from less than 2p in 1976-77 
and barely 3p in 19i f-78 to 
around 5p in the current year. 


The corporation’s current 
profitability reflects, secondly, 
the 10 per cent price increase 
forced upon the industry as 
part of the package of economic 
measures associated with the 
IMF loan in the winter of 
1976-77. The influence of this 
farior should similarly fade 
with lime, since Ministers' desire 
in reduce the public sector 
borrowing requirement by call¬ 
ing for the accelerated redemp¬ 
tion of a nationalised industry’s 
loan debt ought never again to 
he the dominant influence in 
state industry pricing policy. 

The proper basis for setting 
prices in the slate sector as in 
ilie private sector ought to be 
two factors—the level of prices 

set by competition on the 
market and . the full resource 
cost of ensuring continuity of 
supply- It is these considera¬ 
tions which will determine 
whether new investment is 
likely to be profitable and 
ensure that consumers are pay¬ 
ing the full resource costs of 
their supplies. It is however 
one thing to subscribe to these 
principles and another to apply 
them in practice. 


In the first place, market 
competition is not dominant 
throughout the nationalised 
sector. The gas industry may 
be more exposed to competition 
than some others, but it does 
have the first option on North 
Sea gas used for heating and 
it has a quasi-monopoly power 
in the domestic sector in the 
sense that householders are un¬ 
likely to switch rapidly to 
alternative fuel-b u r n i n g 
systems. These constraints on 
the competitive process are the 
justification for setting per¬ 
formance indicators as well as 
financial targets for each state 
board and for using the Mono¬ 
polies Commission to investi¬ 
gate possible abuses of market 
power (such as the current 
investigation into the supply of 
domestic gas appliances). 

In practice, price control in 
the latter 1960s and the early 
1970s served to hold domestic 
gas tariffs well below economic 
levels. Indeed, even after last 
year's price increase, other fuel 
industries have been openly 
saying that, considering the 
finite nature of North Sea gas 
resources and the need to en¬ 
courage energy conservation, ■ 
gas is still being sold too 
cheaply. Up to a point, the Gas 
Corporation bas accepted these 
arguments but it prefers to see 
a smooth movement of gas 
prices towards the time in the 
1980s when not only will North 
Sea supplies be costing it much 
more but the period of rapid 
expansion in gas sales will be 
ever. However difficult it may 
be to judge the right balance, 
at any particular time, it is 
these considerations rather 
than any political desire to 
protect other fuel industries 
which should determine gas 
prices and thus the amount of 
profit which the Gas Corpora¬ 
tion is expected to earn. 

The challenge 
to the OAU 

African Unity, which began its 
annual summit meeting in the 
Sudanese capital yesterday, is 
facing perhaps the biggest crisis 
of its 16-year existence. The 
Organisation was formed in 
1968 in the aftermath of 
Europe's major decolonisation 
of the continent, when the 
brave exhortations tn unity of 
men like Ghana’s Kwanie 
Xkrumah filled the air. Even 
then, the OAU was nut without 
problems: the incipient 

Al'gerian-Murnecan war of that 
year provided the Organisation 
with its first major challenge: 
there followed the Nigerian- 
Biafra war. and numerous other 
local disputes 

But this year its 49 members 
face a challenge to one of the 
Organisation's most cardinal 
principles. The OAU has 
always maintained that African 
problems should be solved by 
Africans, without the interven¬ 
tion of foreign powers. Yet 
today, there arc thousands of 
Cubans fighting in two of 
Africa's six wars: Russian mili¬ 
tary advisers arc in a dozen 
key African countries: and 
French troops are helping at 
least three governments 

Country s finances 

In Zaire, following the second 
Shaba invasion, western coun¬ 
tries arc not only helping 
President Mobutu rebuild his 
demoralised army, but are effec¬ 
tively taking charge of the 
country's finances. 

The deep irony of the present 
situation is that all the foreign 
troops and military advisers are 
in Africa at the invitation of 
independent African govern¬ 
ments. whose perceived national 
tor sometimes party) interests 
have, perhaps inevitably, 
transcended the principles oF 
the OAU to which they all 
theoretically subscribe. Not sur¬ 
prisingly in this regard the OAU 
has been criticised from within 
and outside the continent for 
being two-faced, yet the issues 
are such that the OAU cannot 
be so easily dismissed. It 
remains? to bo soon whether the 
psseinbled heads of state will 
be able to do more than paper 
over tlivir differences on the 
central issue of forei/n inter¬ 
vention, which so far at least 

has centred on the controversial 
proposals for a Pan African 
Defence Force, an idea can¬ 
vassed by the French Govern¬ 
ment at the time of Shaba and 
roundly criticised (partly be¬ 
cause it could involve non- 
African military aid) not only 
by the continent's so called 
radical states, but also by middle 
of the road countries like 
Nigeria and Sudan. 

There arc suggestions from 
within the OAU of an all- 
African defence force, mooted 
many times and no more likely 
to get off the ground now than 
before. There are also proposals 
for reorganising the OAU medi¬ 
ating machinery, possibly with 
the introduction of some sort 
of OAU Security Council. That 
too could well be a non-starter, 
though the mediating and pos¬ 
sibly reforming influence of 
this coming year’s new OAU 
chairman. President Nimeiri of 
Sudan, could be considerable. 

But despite African weak¬ 
ness, and contradictions, _ it 
would bca mistake for the West 
(or the East) to belittle the 
stated African desire to keep 
the continent free of great 
power conflict. It is encourag¬ 
ing in this respect that key 
western governments (includ¬ 
ing the British) seem to have 
decided play a “tit for 
tar" game with the Russians in 
Africa, but instead to try where 
they can to foster unity between 

This they appear to be doing 
successfully in one key area. 
Angola has indirectly admitted 
that it was through U.S. medi¬ 
ation that agreement was 
reached this week with Zaire 
on the reopening of the trans- 
Angola Benguela railway. It ifi 
recent western cooperation with 
Angola, as well as with other 
African frontline states, which 
has produced outline agreement 
on Namibia. The ultimate effect 
of these two agreements could 
be to help stabilise Angola's 
borders to the point where it 
will no longer need its vast 
array of Cuban and Russian 
backing. The West cannot and 
should not interfere in African 
affairs against the express 
wishes oE the OAU or its mem¬ 
ber states, but it can and should 
help Africa to keep the con¬ 
tinent free of big power con¬ 

Mr. G. William Miller. 

F IVE MONTHS into his first 
term as the new chairman 
of the Federal Reserve 
Board, Mr. G. William Miller 
appears to be on the threshold 
oF the difficult monetary policy 
decisions many predicted would 
mark his first year in office. 

The Fed’s monetary policy- 
setting arm, the Open Market 
Committee, met yesterday 
against the background of a 
renewed surge in the U.S. 
money supply and warnings 
that tbe economy is headed for 
either faster inflation or 

As the committee charts its 
monetary policy for the coming 
months, it must decide which 
of these threats is of greatest 
immediate concern. 

On Wall Street, there are 
predictions that the committee 
will move to tighten credit 
again in tbe wake of yesterday's 

In setting its policy, the com¬ 
mittee can hardly ignore the 
rumblings of concern about 
rising interest rates from 
senior Carter Administration 
officials for the first time since 
Mr. Miller took office. 

Since April, the Fed has 
contributed to pressures push¬ 
ing U.S. interest rates higher. 
Thus the commercial bank 
prime lending rate has risen 
over this period from 8 to 9 per 
cent, and other money market 
rates have matched the increase. 

However, in marked contrast 
to the persistent sniping at Mr. 
Miller's predecessor. Dr. Arthur 
Bums, Carter Administration 
officials initially said nothing in 
public about the movement. 

But at tbe beginning of this 
month, Mr. Robert Strauss, the 
man spearheading the Admini¬ 
stration's anti-inflationary policy, 
complained to reporters that the 
Fed's monetary policy was 
“ counter-productive." He said 
that it is more difficult for him 
to press for wage restraint when 
interest rates are rising “since 
most people in this country are 

And this point was driven 
home when, later in the week, 
the Federal Home Loan Bank 
Board reported that the average 
cost of a mortgage on a house 
in the U.S. had risen to Us 
highest level since the govern¬ 
ment began collecting statistics 
in 1963. In some regions mort¬ 
gage rates stand now at 10 
per cent 

Subsequently, Mr. Charles 
Schultz, chairman of the Presi¬ 
dent's Council of Economic Ad¬ 
visers, warned that high interest 
rates would threaten the Ad¬ 
ministration’s growth targets. 

The most visible barometer 
of the anxieties concerning in 
which direction the economy is 
headed has been Wall Street's 
financial markets. 

Through April and May, share 
prices shrugged off renewed 
interest rate increases and 

Money policy: 
the dilemma 

facing the Fed 

staged one of the most spectacu¬ 
lar rallies in recent years. On 
record volume, the Dow Jones 
Industrial average soared 100 
points to 866.51 from the end of 
March to the beginning of June. 
In June, renewed uncertainties 
began to chip away at that rise. 
The share market appears to be 
reg aining some'composure this 
month, but few economists are 
confident that the evidence 
supporting the firmer trend is 
very convincing. 

More significant, perhaps, has 
been the weakness of the long¬ 
term bond market throughout 

phrase which summons up 
memories of 1974, when interest 
rates soared and funds for lend¬ 
ing dried up. 

A contrary view is that the 
economy is already slowing fast 
enough to cool inflationary 
pressure and that an even 
stricter monetary policy at this 
time will only tip it into a 
recession, or a deeper recession 
than the one it is already 
headed for. 

The middle ground, for which 
the Carter Administration is 
aiming, would be a slowing of 
the economy from the unsustain- 

financial markets, last month 
warned the Joint Economic 
Committee of Congress that 
“ our economy and financial 
markets are on a treacherous 

Dr. Kaufman drew attention 
to studies by tbe Federal 
Reserve Bank of St Louis arid 
Mr. Michael Wachter, of the 
University of Pennsylvania, 
which suggest that because of 
structural changes in the 
economy the level at which 
labour resources become 
seriously stretched is now an 
unemployment rate of 5* per 


the period, since bond prices 
are always a sensitive indicator 
of inflationary expectations. 

Yields on Triple-A rated 
utility securities have risen by 
about half a percentage point 
over the past three months tn 
just over 9 per cent, and the 
U.S. Treasury has had to pay 
its highest-ever nominal rate of 
interest — 8 | per cent — to 
float a long-term, 15-year bond. 

As' the table shows, these 
increases have yet to take 
interest rates to historical peaks 
but one of the key questions 
in the intense debate about 
where the economy is headed 
is whether these peaks will be 
tested again, and if so when. 

There are three differing 

On one side there are fears 
that the upward shift in interest 
rates since April reflects not 
just a stricter Federal Reserve 
monetary policy, but surging 
demand for credit and an over¬ 
heating economy. On this view, 
unless these demands are 
checked, economic growth 
reined in and firmer action 
taken to curb Inflation and 
federal government spending, 
the economy could be beaded 
for even faster inflation and 
ultimately what is loosely 
termed “a credit crunch" — a 

ably bigh growth in the second 
quarter (expected to be at an 
annual rate of 8-9 per cent in 
real terms). - Ideally, growth 
would continue, perhaps in the 
34 per cent range, which would 
help to ease Inflationary pres¬ 
sure. But the decline would 
not be so sharp as to seriously 
aggravate unemployment or 
further threaten an already 
imperilled rate of capital spend¬ 

Many economists outside the 
Administration view this last 
course as the most difficult, and 
therefore least likely, path into 
the future. 

The problem for economic 
policy-makers is that the 
statistical evidence which 
might help determine whether 
accelerating inflation or reces¬ 
sion is the greater threat is 
inconclusive. But with the 
economic recovery now into its 
fourth year and inflation in the 
first half running at a 10 per 
cent annual rate according to 
Carter Administration officials, 
the risks of making the wrong 
policy choices clearly could be 
extremely serious. 

Thus Dr. Henry Kaufman, a 
partner of Salomon Brothers, 
the New York investment bank¬ 
ing bouse, and wbo is widely 
recognised as an authority on 

cent, not, as was generally 
supposed in the 1960s, around 
4 per . cent. (In June the 
unemployment rate in the U.S. 
fell, ominously on this view, to 
5.7 per cenL) 

Dr. Kaufman went on to point 
out that there is, too, a shrink¬ 
ing availability of skilled labour 
which aggregate statistics do not 
reveal. Other economists have 
argued that structural changes 
mean that current levels of 
industrial capacity utilisation 
are also, in practice, putting 
greater pressure on resources. 

Much of Dr. Kaufman's con¬ 
cern, however, focuses on what 
he describes as "the reckless 
pace ” of the growth of debt in 
the U.S. This, he said, had In¬ 
creased at a 14 per cent rate in 
1977 and was rising even faster 
this year. By comparison, debt- 
growth during 1962-71 averaged" 
7.4 per cent 

He drew attention to the 
growth of the money supply, 
which he said on its narrow defi¬ 
nition had been rising since mid- 
1977 faster than the Fed’s long¬ 
term target rate. No less im¬ 
portant, he argued, is the fact 
that sharp increases in interest 
rates over that period appear to 
be having little visible impact in 
bringing about monetary re¬ 

Here ‘again, economists point 
to -structural changes in the 
economy which they suggest 
will mean that rising interest 
rates will .not bite into economic 
activity as quickly as in-the past. 

■ They point to recent decisions 
to allow banks and the financial 
institutions which finance home 
loans to pay higher interest 
rates on deposits. They point 
to new financial instruments for 
packaging home loans and 
reselling them from the initial 
lender to other financial institu¬ 
tions in order to generate new 
funds for lending. . These 
changes, it is suggested, will 
mean that more credit is avail¬ 
able from banks and savings 
and loan associations at higher 
levels of interest rates. 

Thus it is argued that it is 
less the availability • of credit 
and more the eventual Inability 
of people to pay high interest 
rates for it which will curb the 
expansion of the housing sector 
and that this will happen more 
slowly than in tbe past 

Dr. Kaufman fears that the 
economy is not slowing as much' 
as others suspect and he warns 
that the U.S. could well come 
close to testing the previous 
cyclical bigh in the annual 
inflation rate of 11.6 per cent 
hit in the first quarter of 1975. 

The contrary view is that- 
economic - growth is already 
headed sharply downward. Mr 
Erich Heinemann, a money 
market economist with invest 
meat bankers Morgan Stanley, 
leans towards this interpretation 
of events although, like Federal 
Reserve chairman Mr. Miller, 
he makes a point of not ruling 
out some of • the dangers Dr. 
Kaufman foresees. 

Mr. Heinemann's view is that 
“the authorities (both fiscal 
and monetary) no longer have 
the option of avoiding recession 
but only of taking actions that 
will affect its timing." Some 
would add, too, of affecting its 
severity. He argues therefore 
that the largest part -of the 
cyclical rise in interest rates in 
the current business expansion 
has now been- completed. 
Interest fates- will peak, he- 
suggests, some time around the 
final quarter of this year or 
early in 1979, .with long-term 
bond rates on Triple-A tele¬ 
phone utility issues not rising 
substantially above 9 to 9£ per 

Among the arguments used by, 
economists who hold to - this 
general forecast is one that some 
of the apparent excesses evident 
in the second quarter of the year 
mainly reflect the surge in eco¬ 
nomic growth in that period as 
the economy made up for the 
flat first-quarter’s performance. 

Now, it is claimed, not only 
is this catching-up process over, 
but pressures are building up 
which will slow the economy 
sharply. It is suggested that 

with debt repayments (including- 
mortgage debt) now accounting 
for an historically high 20 per 
cent of disposable income, the 
consumer, who has powered the 
growth of the past three and a 
half years, will baulk at taking 
on new burdens, Business, anti¬ 
cipating this, will ease back on 
stock building and perhaps be 
cautious about new production 
schedules, and capital spending 
is not. and will not be, buoyant 
enough to give the economy a 
new boost. 

Whichever of these alter¬ 
native views is taken, much 
seems to depend on interpre¬ 
tations of consumer attitudes. 
How deeply, for example, has 
the inflationary psychology 
become embedded in con- 
sinners" minds? 

There is ample evidence tn 
the most recent minutes of the 
(May) meeting of the Open 
Market Committee and also, 
implicitly, from the June 
decision by the Fetfs gover- 
nors to raise the discount rate 
from 7 per cent to 7J per cent, 
to suggest that there is. as much 
argument within the central 
bank about where the economy 
is headed as there is outside it 

That decision on the discount 
rate was noteworthy not only 
because of the relatively modest 
increase relative to. earlier 
movement in market rates, but 
also because, for the first time 
apparently since the Second 
World"War. the chairman of the 
Board (Mr. Miller) allowed 
himself to be outvoted. 

Mr. ’ Miller- subsequently 
explained that one of the 
reasons he'opposed the increase 
was that before raising interest 
rates again he wanted to see 
clearer economic data on where 
the economy is headed. He has 
also pointed out that historic¬ 
ally the central bank has not 
been too successful, in avoiding 
overly ' restrictive monetary 
policy decisions. 

These remarks and actions by 
Mr. Miller in recent.weeks have 
Wi some observers to conclude 
that he will not be anxious to 
impose a stricter monetary 
policy at this juncture. 

This approach would ; fit•• not 
only with what Mr. Alan Lerner 
of Bankers Trust has described 
as Mr. - Miller's gradualist 
approach, of fighting inflation 
over years rather than months, 
but also with his earlier expres¬ 
sions of a desire that the 
Federal Reserve , should not be 
saddled with most of the burden 
of fighting inflation. 

In his first months-in office, 
Mr. Milier has. many 1 on Wall 
Street would argue, taken up 
the reins of office with impres¬ 
sive skill. He has begun- to 
carve out for himself¬ 
minent • role in economic 
policymakiitg. But some would 
also argue .'-that the coming, 
months wiifi ; provide a severe 
test of this approach. 


Ford clears his 
field of fire 

The'advance publicity for U-S. 
Ford's new model Mustang 
showed the company president 
Lee Lacocca, standing proudly 
beside the bonnet; after all, the 
first (and hugely successful) 
Mustang was his greatest mar¬ 
keting triumph. But the world's 
motor industry is now ponder¬ 
ing the significance of Iacocca’s 
sudden exit from the presidency 
after eight years. At this week's 
unveiling of the latest model, 
his forceful personality was ab¬ 
sent, yet keenly remembered. 

lacocca was heir apparent to 
Henry Ford n, now 63, and 
connoisseurs of the Ford suc¬ 
cession saga recall the lightning 
dismissal in September, 1969 of 
the previous president and 
seeming heir, ** Bunkie" 

Knudsen. At that moment 
lacocca sat on tbe platform 
smiling and smoking a large 
cigar. Knudsen had lasted only 
19 months. Before him. quite a 
few other senior executives had 
fallen* to the power of the man 
who once succinctly explained 
his strength: “My name is on 
the building." 

There was Harry Bennett, for 
example. Hired in 1916 by 
Henry Ford, the founding 
patriarch, he was by the 1940s 
controlling the company with 
ruthless determination. Henry 
II took nominal control in Sep¬ 
tember, 1945, after his mother 
had threatened to sell her stock 
to outsiders; he immediately 
sacked Bennett. In a tense con¬ 
frontation with John Bugas, the 
young Henry’s ally, Bennett 
pulled out a revolver. "My .38 
was just inside my jacket^ was 
ready if it looked like my life 
was involved," said Bugas 

Henry H brought in a General 
Motors veteran Ernest Breech. 
In 1960, Breech left after Henry 
reportedly told him: “I’ve 
graduated." In 1963, Arjay 
Miller—recruited as one of 
young Henri's "whizz kids"— 

became president Miller re¬ 
turned from a trip to Latin 
America in 1968 to learn tbat 
he was being replaced by 
Knudsen. then executive vice- 
president at General Motors. 

lacocca claims that be, too, Ls 
being unseated because “ Henry 
just does not want strong guys 
around.” One company associate 
remarks: “ Lee is like a Medici 
prince. He created his own 
city state." Speculation bas it 
tbat Henry plans to leave his 
younger brother William Clay 
Ford holding the wheel when 
be retires in 1980 and that 
William, in turn, will be suc¬ 
ceeded by Henry’s son Edsel, 
now 29 and being groomed for 
senior management. 

This is obviously a trying 
time for Henry Ford and for 
the company. The Justice 
Department is investigating 
whether Ford paid a bribe to 
secure an Indonesian contract 
in 1975; the safety’ of its Pinto 
small car is being questioned 
by government investigators: 
and Henry himself is being sued 
by a group of shareholders 
alleging that he took a £750.000 
kickback from a supplier and 
misused his powers. But there 

■/ ax 



“They're afraid of an EEC 

mrrmnr mniml!iin n 

is na doubting Ford’s char¬ 
acteristic response. Last year 
he was arrested on a driving 
charge with a young female 
companion as passenger. Ques¬ 
tioned about the matter at a 
Press conference, he replied: 
"Never complain, never 

All embracing 

Lord Longford may have his 
critics, but they could never 
accuse him of being without 
novel answers to hard ques¬ 
tions. Yesterday a committee 
of which be is chairman pro¬ 
posed increased compensation 
for victims of violent crime. 
After the press conference, 
Longford was asked if he 
saw any Inconsistency between 
his campaign to free Myra 
Hindiey—one of the Moors mur¬ 
derers—and his advocacy of 
more help for sufferers from 
crime. "I supported both sides 
in the Spanish civil war,” he 

Gone west 

A move into the Home 
Counties from the City may 
seem a daring venture for 
many companies. But London 
and Manchester Assurance has 
shown its pioneering streak by 
going down to the West 
Country. Six hundred employ¬ 
ees have been moved to a £5m 
office complex surrounding a 
200 -year-old manor house near 
Exeter. The London and 
Manchester chairman, Lewis 
Whyte, takes satisfaction from 
telling how the cost of the 
Winslade Park site, Including 
the manor, was £250.000— 
equal to One year’s rates for 
the company's former head¬ 
quarters in Finsbury Square. 

The final restoration work is 
being completed and the office 
blocks are designed to 
harmonise with the surround¬ 
ing building. The park is the 

manor of Clyst St. Mary, which 
in the 11 th century was owned 
by the wife of Edward the Con¬ 
fessor. London and Manchester 
has become ihe biggest private 
employer in the Exeter area. 

While an electronic security 
system was being installed by 
Mastiff, a Leatherbead com¬ 
pany, Commander Nevill 
Porter, the managing director 
of Mastiff, must have felt a 
certain nostalgia. The life 
insurance company’s new head¬ 
quarters had once been owned 
by his "family. Porter’s great 
great grandfather had bought 
Winslade House — with 500 
acres—in 1821 for £28,000; the 
family sold out In 1910. 

Highly marginal 

On past form, fringe banking 
may hardly be considered as 
synonymous with astute finan¬ 
cial thinking. But it seems that 
the people- in it can at least be 
associated with the art of 
gracious living. Readers of the 
FT may have noticed a small 
advertisement yesterday headed 
"Contents of Fringe Bank." 
Among the items on offer were: 
"Exceptional quality office fur¬ 
niture, teak desks, hide chairs, 
swivel chairs in tweed... 

Tasty stuff 

The brochure put out by 
Imperial Tobacco (Imports) 
says on its front page: "Shaped 
like a dream . .. Smooth to the 
touch . . . And makes one 
passionately long for . . 
Nothing to do with cigarettes, 
but announcing the latest offer¬ 
ing from Danish confectionery 
makers Anthon Berg. 

The range should be a big 
seller with the teenagers who 
stared round-eyed at Wimble¬ 
don. It is named after Bjorn 
Borg. Fans can now devour him 
in nougat and hazelnuts. 

The Big Orange: 
the only daily 747 
Non-stop to 
Dallas -FortWbrth 
and SouthWfest U.S.A. 

Leave London Gatwick 1L4 5 am. 

Arrive Dallas-Fort Worth 3.05 pm. 

BranifFs colourful 747 takes off daily from London 
Gatwick. Arrival time at Dallas-Fort Worth • 
accommodates connecting Braniff flights to major 
cities throughout America’s Big Country and - 

• - Call your travel agent or Braniff reservations . 
on 01-491463L 




Mainland USA,.Alaska. Hawaii. Mi-sico,South Amt'rira and Ken 


VJi v 

. ^ Iiandal Times Wednesday My 19 1973 

The innocents of product li 

"ERYONE from the Insurer 

S o commits himself to under¬ 
lie any losses, to the lawyer 
o takes the case to court is 
seems, well versed in all 
wets o. product liability, 
eryone that is. except he who 
"likely to be most dramatically 
^sj% ec t p ^ *— the manufacturer 

>.ti self. 

A product liability survey, 
st completed by the British 
Tety Council, indicates that a 
r>’ high proportion of British 
mpanles, some of whom ex- 
rt to the North American 
irket. are completely out of 
uch with the latest features of 
e product liability situation 
d the size and volume of 
lims. particularly in the U.S. 
; er half have either failed to 
fee out special product liability 
surance or simply do not 
iow whether they possess such 
ver. and the vast majority 
low little or nothing about 
ther the EEC Draft Directive 
i liability or the Report of the 
iglish and Scottish Law Com¬ 
issions, both of which contain 
commendations likely to be 
ade law. 

The case for British com¬ 
mies insuring against product 
ability before any change in 
e British law is made is that 
iy company, even if it does not 
:port to the U.S., can never be 
ire that one of its products 
ill not find its way to America. 

• that it will not injure an 
merk-an citizen in Britain.» 
The BSC survey, conducted 
.■er a two month period, covers 
520 companies in Britain, the 
atus of individual respondents 
irying from top managers and 
impany secretaries to chief 
ifety officers. 

Out of the total sample of 
520, 974 companies or 64 per 
»nt were involved in the manu- 
.-cture, assembly or exporting 
* consumer goods. Quite an 
inocuous pursuit one would 
ive thought uirtil you consider 

the case of the American 
woman — whose poodle was 
lulled in a macro-wave oven 
when she tried to dry the. dog 
in dt, and who later successfully 
sued the makers of the oven for 
false description. Moreover, 
once the Foreign Judgments 
(Reciprocal Enforcement) Act 
is ratified between the American 
and British Governments, 
American citizens wild be able 
to file such law suits against 
British manufacturers with 
great ease. 

Latest claim 

Because two-thirds of the 
respondents were involved in 
one way or another with con¬ 
sumer durables, some actively 
exporting to irtie U.S. and 
Canada, the logical second ques¬ 
tion was were they conversant 
with the latest claims on the 
other side of the Atlantic — a 
feature of the liability problem 
with which any manufacturer, 
exporter or not, should be 
acquainted. Rather alarmingly, 
only 45 per cent were able to 
answer " ves.”‘ Quite clearly the 
fact that an estimated lm liabi¬ 
lity suits were lodged last year 
in the U.S. alone (resulting in 
some 500,000 companies being 
taken through the courts, with 
some such as Ford Motor 
directed to pay out large 
amounts of compensation)' has 
not yet permeated the higher 
echelons of British management 
In one case, Ford was directed 
to pay a badly injured car pas¬ 
senger $126ru, although this sum 
was subsequently reduced on 

True, awards in America are 
17 times greater than in Britain 
at present. One of the recom¬ 
mendations of the English Law 
Commission's Report on liability,, 
is. however, that no ceiling be 
put upon compensation pay¬ 

ments when we finally legislate 
for strict liability in Britain. 

In the face of this apparent 
ignorance, it was surprising that 
only 420 companies interviewed 
in the survey had not taken out 
special product liability insur¬ 
ance. Somewhat disturbing, 
however, was that a third of the 
respondents simply did not 
know whether such insurance 
had been taken out. No such 
confusion reigns in America 
wbere manufacturers have 
learnt to count to their bitter 
cost the exact price of insurance 
cover. At the First World 
Congress on Product Liability, 
held in London last year, the 
managing director of a large 
American engineering company 
recounted how his insurance 
premium had rocketed from 
34.000 in 1969, to $440,000 in 
1976. At the risk of pricing 
himself out of the market he 
raised the cost of his products 
by 10 per cent. How many 
British manufacturers could 
withstand this kind of assault ? 

Slightly more heartening was 
that when asked whether their 
safety and quality assurance de : 
partment followed a product 
liability checklist* 54 per cent 
replied “yes." Any faint 
euphoria this might arouse must 
be tempered, however, by the 
consideration that for some sec¬ 
tions of the* manufacturing in¬ 
dustry quality assurance con¬ 
sists of no more than random 
tine sampling. 

Two of the most important 
docoxnents on liability pub¬ 
lished recently have been the 
EEC's Draft Directive and the 
Report of the English and 
Scottish Law Commissions. The 
general conclusion of both docu¬ 
ments. not to mention the 
report of Lord Pearson’s Royal 
Commission on Civil Liability, 
is that strict liabilty for manu¬ 
facturers be introdneed as 
speedily as possible. The results 
of the Safety Council’s survey 



9 Has a dearly written product 
loss control policy been Issued 

• Hava designers (or new 
product development staff) been 

over the signature of the manag- trained to build safety rail¬ 

ing or works director ? 

• Is that policy short, dear 
understandable, distributed to ail 
departments, people affected and 
re-stated twice yearly ? 

9 Has a top level manager been 
designated to co-ordinate the 
. product loss control policy ? 

9 Has a product loss control 
group been formed to implement 
the policy 1 - 

9 Does representation on the 
product loss control group in- 
dude “ dedsion makers ” from 
(a) Design Engineering (b) New 
Products Department (c) Manu¬ 
facturing (d) Quality Control 
(e) - Service Department (f) 
Legal (g) Advertising and PR 
(h) Personnel ? 

9 Is the product loss control 
group in a position to recom¬ 
mend changes or amendments in 

reveal, however, that 62 per 
cent of British companies are 
not even aware of the EEC 
stand on liability, and worse 
still. 71 per cent are not con¬ 
versant with the Report of the 
two Law Commissions. 

Only 370 of the 1.520 
respondents were able to con¬ 
firm that their companies had 
set up. under a senior manager, 
a product loss control depart¬ 
ment or committee of all people 
responsible for the design, 
quality, safety and insurance of 
products. Such expert managers 
are commonplace in the U.S. 
and yet it would be no exaggera¬ 
tion to say that liability litiga¬ 
tion bas run riot in that 
country. One cannot help but 

ability and easy maintenance to 
new products? 

9 Are products subjected to 
checks (particularly critical 
parts) using systems analysis, 
prototype .testing or other 
accepted methods ? 

t Are potential hazards shown 
dearly In the language of the 
intended user in (a) warnings on 
the label of the product (b) 
labels on die package (c) on the 
operating and maintenance 
books/manuals ? 

9 Is the Quality Control Depart¬ 
ment sufficiently separate from 
Manufacturing that they have 
direct access to top management, 
and do they have the authority to 
stop the job if required ? 

• Does Quality Control have 
statistical sampling techniques 
operating well enough to ensure 
acceptable standards ! 

9 Are suppliers told of the final 
use of materials and are sugges- 1 

tions regarding improvements 
encouraged from suppliers ? 

9 Do ad-men, salesmen, etc, 
understand the dangers of words 

other extravagant claims ? 

9 Does all printed material show 
by illustration rather than words 
(particularly if the product is 
aimed at a non-technical group of 
consumers) any dangers inherent 
in the product or in its applica¬ 
tion or operation ? 

9 Does the advertising manager 
(and through him the advertising 
agency) check copy for adverts 
with the Advertising Standards 
Authority and Code of Advertis¬ 
ing Practice to ensure compliance 
with voluntary and statutory 
requirements ? 

9 Do Legal and Design Depart¬ 
ments have a sight of all advertis¬ 
ing—material, sales brochures, 
operating manuals, etc., to check 
for misleading statements ? 

9 If investigations are properly 
carried out, is the investigator l 

sufficiently trained to determine 
basic causes rather than seeking 
to “ blame the customer " > 

• If investigation shows that the 
complaint is justified, is the right 
action taken ? In particular, arc 

(a) changes made to design, 
manufacturing, quality control, 
service (b) complete recall of 
product or field modification 
carried out ? 

9 The five avenues of inquiry 
that investigators should be 
trained in arc (a) what is the 
defect that is claimed to exist ? 

(b) is there a delect and did it 
cause an aecident ? (c) was the 
claimed defect in existence at the 
time the product left the manu¬ 
facturer ? (d) what was the acci¬ 
dent/injury/breakdown ? (e) in 
what manner is the maker 
claimed to be negligent ? 

9 Are the records of purchasing, 
design, manufacturing, quality 
control good enough to identify 
sources ? 

9 Does top management act 
promptly on recommendations of 
product loss control group I 

Source: BritKh Sof-rv Council 

have apprehensions about 
British ’industry. 

Indeed, for many it could 
already be too late. New legis¬ 
lation on liability is now 
beginning to creep into Britain. 
In February, the Unfair Con¬ 
tracts Terms Act unobtrusively 
appeared on our Statute Book. 
In spite of its rather cumber¬ 
some title, it bas the effect of 
preventing • manufacturers or 

proprietors from disclaiming 
liability or responsibility for 
faulty products and unsafe 
services. Those plaques, boldly 
displayed in cinema cloakrooms 
and multi-storey car parks, pro¬ 
claiming that articles are left at 
the owner's risk, no longer pro¬ 
vide exemption from prosecu¬ 
tion under the new law. 

Letters to the Editor 

Unless it is to be caught on 
the hop by further and stiffer 
legislation, British industry 
must face up to and decide upon 
one of the four options open to 
it. Because of the enhanced 
risk that now accompanies all 
manufacturing, a company can 
do one of the following: retain 
the risk by keeping it within 
the company: reduce the risk by 
strengthening quality control 
and introducing safer variants; 
transfer the risk to an insur¬ 
ance company; or. fourthly, 
avoid the risk altogether by 
taking its products off the mar- 

In the long run, reduction of 
the risk is the only feasible 
option. But British industrial- 

I GENERAL beleci Committee: Expenditure 

Prime Minister discusses forth- 1 UUdy S HVCitlS (Trade and Industrv sub- 
coming White Paper on pay •> committee). Subject: Prevention 

policy with Confederation of Transport and General Workers’ of collision.* and strandincs of 

ists seem destined to adopt the 
dubious combination of rete n- 
fion. tranxicr and avoidance. 
However, many small com¬ 
panies simply could not cope 
with lhc possibly disastrous 
consequences of retaining the 
risk—one large claim could 
mean automatic bankruptcy. 
Similarly, the option of trans¬ 
ference is also being closed, 
either because premiums are 
too high, or because insurers 
are beginning to deem the risk 
factor associated with certain 
products too great—new 
pharmaceutical drugs, for ex¬ 
ample. And the fact that there 
can be little future in the tech¬ 
nique of avoidance must be self- 

A good example of British 
reluctance to face up to the evi¬ 
dence was given recently by Mr. 
Michael Meaeher, Ml*. Under 
Secretary of Stale lor Trade, 
when he said that if product 
liability legislation proved 
detrimental to British ex¬ 
porters. then he would "make 

the strongest representations to 
the U.S. Government.” The U.S. 
law is indeed detrimental to our 
exporters (some companies 
have been forced to pull out 
of the American market alto¬ 
gether!: and indeed Mr. 

Meaeher lias made representa¬ 
tions. But unfortunately the 
ball is nm in nur court this 
time so we cannot stop ihe 

Nobody m Britain wan I* a 
rc-run of the American experi¬ 
ence. What everyone wains is 
safer products. And this can 
only be achieved if British in¬ 
dustry commits itseir. with the 
involvement of profo-Monal 
safety officers, io the principles 
of product loss control commit¬ 
tees. with the sincere desire to 
design and introduce quality 
assurance arrangements and 
genuine consumer feed-back 

After hundreds of years in the 
darkness, product liability and 
its inevitable bedfellow con¬ 
sumer redress, begin to assume 
thp proportions or a gentle 
giant. Either industrial wisdom 
will bend to the gram's remorse¬ 
less persuasion, or he will pick 
nur industrial system up 
between thumb and forefinger 
and quietly squeeze it. 

Very often survey statistics 
can be infinitely manipulated tn 
signify almost anything. On thi.< 
occasion, however, the facts 
clearly indicate that we have 
underestimated both the size 
of the giant and the power of his 

The author has been director 
general ot the British Safety 
Council since 1963. 

_ . policy wun c-orueaerauon oi jransE 

nonHol figure is much lower than many mission for dumping protection. Government in dealing with the British Industry, before CB1 Union 

v C ill UI t* Lapllal .. people would have expected, but This is very much a second recommendations of the succes- Council meeting. CBI leaders drivers 

rom Dr S Castell justify an overt encouragement 1 wen * further and outlined a choice: a move to free and fair sive Boyle Reports on the later meet Mr. Roy Hattersley, Ellesm 

Sir J must. of course add my of "high personal rewanls for number of practical methods by trading, as with EFTA and now salaries of members of national- Prices Secretary, on Government side. 

>cd. should all innovative en- the area of new technology-based have amwer^ same. 

■rnrising. lateral and practical venture financing, that’s how! to the enactment of freedom of D. G. Croxon. 

tinkers. ' It is something we And within that more limited. 'jjjfjj™'i Unio nsrol Larfe /* pM Maidstone, 
ive talked about for some time but still broad spectrum, . of Ren * 

jw. 1 would refer to letters industries, focusing particularly j> f ^ e ., n p ^v ?ili?n n - 

1 mine last year wherein similar on the rapidly converging fields {* Je S ai»ect P of TmiUirtC nf 

ens for a “venture capital ofcomputerhardware/sofewaTe, ^we^and the “eaSof a luipOllS OI 

imhlers’bond " and a new risk- telecommunications, office auto- np ?. na -}„{!? of acces.* to 

ipital organisation staffed itself 3 ? a non and data bases, now being offi c “if^ nf 0 TOation f woufd alte? teXUlCS 

Frora a,e nemv c™ 

ised industry boards in partial- pay sanctions. British Institute of Management 0FF,C,AL STATISTICS 

lar, 1 would like to suggest a Mr. Denis Healey, Chancellor of launches Managers Manifesto. Basic rates of wanes and normal 
course of aetion. which might the Exchequer, meets nationalised PARLIAMENTARY BUSLNESS weekly hours tJunei. Monthly 

also have other important industries chairmen’s group House or Commons: Wales Bill, ,ndes nf average earnings (.May), 
benefits. delegation, also on pay policy. consideration of Lords amend- COMPANY RESULTS 

. The board of each nationalised SK dividends: Air.i.v Indus- 

industry should be invited by tion against the Bank of England Honse of Lords- Statute Law T /’ es: BuUerheld-Harvey: Dowty 
the responsible Minister to set concerning Burmah’s former Repeals Bill report sta-e p P 0 U, L : , ! ' ! j‘ n5lo . n Thompson 
iiman audit committee enmoris- hnldine in British Petroleum __oni Evershed. Interim dividends: Rank up ran audit committee compris- holding in British Petroleum 

miPOrib UI ing the part-time members of European Commission meet 

- the board — where such a com- “ crisis cartels," Brussels. 

fAYfllPC mittee does not exist at present Vauxhall management expected remaining stas 

i.vaiuvli _ t(J undertake t b e usual duties to meet national officials of ihird reading. 

From the Deputy Commissioner , of SUC b a body and to report- 

holding in British Petroleum. Employment Protection Bill and lIm m i (U K r l R i r m idOu-i Icil”i • 

European Commission meets on 1BA Bill, third readings, Finance , urm “irmid QunituM. 

" crisis cartels," Brussels. Bill, second reTding S lnveresk Group - L,n,nn DlseounL 

Vauxhall management expected remaining stages. Transport Bill. COMPANY MEETINGS 

Seo pace 23. 

jankiio^Ut*" were extensivelv tively as information technology ine aamnw « t rom me uepuiy 1 . 1 ™™^ of suc h a ;body and to report 

s?Sd extensively » rormauon umunoiogy someway at least from Wb te- Kong Kong Government Office ‘ a each annual report ’ 

To complete the picture, a And perhaps the Goveromeni “JJ. cXS?* Sat is the real , sir “P e i* atenien i 1 . in ^„ the When the committee ba s been 

. * •- 1 ... u _ 1 hoc? at 1 act hoffirn tn erniff Hio UUfll vlUicii* _ j. um cup lortnr fmm Macci-c Mooarthnr- , . r 1 1 a_ _r 

able angelic host would also ^ at last begun to sniff ^the '* Ministers and civil ’etter from established and Its. terms of 

ovide additional back-up ser- p, Sl servants are -opposed to this ? n <* French of the British Cloth- re f er ence defined, the Minister 

res to fledselinc enterprises in . ^ ^ . ... anoniiai "fpfnrrn ing Industry’s Council for Europe should then delegate to the audit 

L ..S 5KP flical-and mlmcloetnmiei-ita guts of IT R. Darlington. 

SsS anS six io? - 

i£ht U, aa“ 3< SiESi e ’proposes SlpaSen^fTnTu^todin^. Spanish eXpOrf 

S1L , Alas, entrepreneurial indus- r « r 

3 f. SSffiSbeffi^ iSSgVffi cfSScafronS 0 ?? performance 

ifnout the single, simplest inno- government intervention too the .Ifajwmptnfl Director, 
<tion of new-veDture taxation tirnp* jn the pastel suspect Kimberly-Clark 

mg industry s council for Europe should then delegate to the audit 
(July 12) that “ the result of the committee, the responsibility to 
(MFA) negotiations has been to revjpw annually the salaries of 
increase the total access of low- board members with functional 
cost textile and clothing sup- responsibilities, in association 
pliers to the EEC and UK with the chairman and deputy 
markets . _. is not borne out chairman of the board, in the 
by the evidence of the import Rght of the personal contribu- 
statistics. ... . . __ tion of the individual members, 

UK trade statistics for the first salary levels obtaining in 
five montbs of 197S show an in- other of the comparable 
crease of 15 per cent in textiles nationalised industries. ■ the 


The committee 

on . 1 . t0 beuome personally fan ^ ce iestial zephyr cur- the record needs some adjust- from" OECD countries* comimttee should also 

oallhy. whether as a result of rentlv emanating from potential ment JSS a decrease Sf 4?9 o?r undertake the same duties for 

ss-laxal accumulation of private angels into a mighty IT- The Spanish Government has SI, in imnurSi fmm “nthpr ^ cha innan “d deputy chalr- 

4 -ome/dividends from the inno- backing gale ! perhaps not trumpeted about its " ’ man ever y ^ y ear informing 

:tive “ Broadway Industrial These two subjects: risk- export performance because in “ If f f develooine Slinister of its decision. If 

its" they back, or by way of capital for innovation, and a so doing it would expose to its em TnJSf are restrained while Minister did not accept its 

^en-less-taxed capital gams on uk strategy on perhaps the neighbours the unfairness of this JSSSr from deveiooed conn- recommendations itf these cases, 

sin vestment through a bounc- ma jor industry oF the future, success. Take as an example the , pFr .jnrpc.raiW surelv 1116 audil should be 

S stock market, itself therefore information technology, are to tairrent import to the UK of low H 1 ?! Siat SelatterwiU ac co rded the t0 pnbDsh 

red from present constraints my mind dual and inseparably priced toilet tissue: we find this il««nd at the exDense of the its vieWs in board’s annual 
. ■ signed, it seems, with quite and are among the principal trade has a Spanish Government farmers excuse or uie r&port _ •• 

i'.,c opposite end of keeping out topics of concern of AGIT: export incentive of 13 per cent. cT wphUniin™ These steps would ensure an 

"• 0 private investor. Action Group on/for Information and’additionally a tariff protec- * wr independent, in depth, assess- 

_Rut how can a Socialist gov- Technology. tion -for the' Snanish home ’ UTOJKrtI ■ arreei - Wl ■ men t of both the performance 

-*■ nment. even when some recent fDr.) Stephen Castell. market oF some 43 per cent. I ^ ... of the board and of the 

. : ILs suggest that the majority Furtonos. Gronfle Road, am sura our UK export perform- Spttlllff D2V individual board members and 

J ' ibe vlcctoraie, of whatever VVwfeham Bishops, Wilham, ance would be glamorous indeed ■ ^ *■*■***& eusurethattheunhappyexperi- 

hiical hue. would be in favour. Essex. ^ we cou id have equivalent IaVpIg ence of ^ P 3 * 1 four t0 five 

-—---- trading conditions. 1C v CA3 years is not repeated. 

_ managers have never beeo our only defence unfor- From Mr. D. Clement D. M. Clement. 

I PH UIH 6 S trained in the basics of their job tuoately is to ask, with UK Sir,—In the light of the diffi- 19 The Highway, 

, even though they may have Government help, the EEC Com- cutties experienced by the Sirtfcm. Surrey 

J’YVPlVP attended courses on techniques. . ___:-—— 

,-ifT_ Others may have learned as . Y , , j. 

*i > om JUrs - S- iVittenbc^- students when they lacked the C||ailliel ISl 3 DdS miSCOIlCeptlOIlS 

. e o^S,°ttay 5S?5&3S M, E. McD^U .0 colder the ^onsUtutional natio^ .^ ep rasidee* in 

' ta three different baker’s shops by people who had never actually Sir,—Jt is a pity that the other- relationship between the Chan- any of th?n > 1 * certain date. 

> north-west and west London. SKSFShK wise splendid article by Robin nel Islands and the UK. Am- 

■ each shop the young assistant instead^fSe “once for all" MaxweU-Hyslop, MP (July 6 ) traha and Canada were originally says, ForWeetolnster to uo- 

loriously wrote _down 12 p ten type jong course given to the few_ 

•»' c private investor. Action Group on/for Inform: 

.But how can a Socialist 60v- Technology. 

+ ' nment. even when some recent (Dr.).Stephen Castell. 

i ILs suggest that the majority Furlongs. Grange Road, 
i ' ibe electorate, of whatever Wickham Bishops, Without, 
hiicul hue. would be in favour. Essex. 

Setting pay 

Ten times 



These steps would ensure an 
independent, in depth, assess¬ 
ment of both the performance 
of the board and of the 
individual board members and 
ensure that the unhappy experi¬ 
ence of the past four to five 
years is not repeated. 

D. M. ClemenL 

if . \ 

Top Priority means just 
that. It’s a great new 
express package service 
from British Caledonian. 

Packages up to 22 lbs 
(10 kilos), delivered door- 
to-door from anywhere in 
Greater London/ 
Aberdeen to over 9,000 
towns and cities across 
America. Fast. All you 
have to do is call us. 

him 10 school children, u WO uld deal with practicalities not me channel islands are not ana wisneu. i«w 

100 i -1 eavers do not know how JnteUecttial itSights. Others have been tax havens in the Sovereign—peculiars is Je eiple^and no constitutional out- 

mu liplv bv 20, what more would be taken periodically generally accepted meaning correct term—and it is to the rage. This m true enough^ 

, u ‘ P done’* throughout a career, of the term. Tax havens are ter- Sovereign that they owe then provided such legislation is uni- 

ould 00 don ■ throughout a managn^s care . rltor . whose Governments allegiance and not to the UK versally applied and is not discn- 

Irs.) E. Wittenberg. each being tailored; toi the rank act i ve ] y purBlI e policies of ParliamenL The fact that succes- minatory as was the case here. 

Kuiracru. Church Road. S? n d , n / s SP i rV ,*® „^Hed encouxaeinE tax evasion and tax sive Sovereigns have over the Mr. Joel Barnett, the Chief Sec* 

eu-orth. Middlesex. JJ h /'JSSff S£S to site JS5SSSF& set themselves centuries been forced by cir- retail of tbe W said^in 

- ■ a. fullscoDetotiiecr^tivemmiacer out to assist non-nationals in cumstances to delegate their th e debate m the House that 

lVEariafJpment but wSJh ensureTtbS 7hTiless those endeavours. The Channel powers to Parliament is, noicon- the reason for its application to 

IViaildgtiUCUl Sifted nut whrt Ss been learniS Islands have never done that and cem of .the Chanellslands. Their the islands was because of tbeir 

frnmmff StoniSSioe learnoa inA ^ haye alwaySj ^ough loyalty is to the Sovereigii atone, closeness to the UK and also be- 

training ,nt r 0 P r * ct J^mk these needs are frequently to their own disad- ^It is true, however, that over cause they are in the sterling 

.... Mt R Kick&on m^ e hooif dS are vantage. ^co-operated in every the past 10 years the UK Parlia- area. This statement does not 

Sr J5ii his review of my book bein f ®* L Hence m y book * posri^ way with the UK ment has assumed that it has the stand up to a moment’s exami- 

owto be aSuccessful Manner" J■ W- Ntotson. Tre asSy and with the Bank of right to legislate for the CL But nali on. F The . north coast of 

J \n comments that Cedartoood, Rlombtgton Drive. England. that assumption does not make France is far nearer to the UK 

« D undits” mostly ^eun Lane, Winchester, Hants. The true description of the it valid, though to be sure the than the islands yet a UK 

"ifat is obvious or already ’ -- „ islands Is that they are low tax UK Parliament has always acted national can take up residence 

.11 known but that managers FrPAHftltl ffcf areas and they are low tax areas with caution in that respect. i n prance and escape CTT. And 

,« hSnks to "ain re- 1 CCUUHl Ul because for the past 50 years at It is quite possible that if UK Eire is in the sterling area and 

“LIE? ° least-they have managed their Governments, in particular uk domiciled.nationals can go 

me ^dprlvinc assumption 1010110311011 affairs considerably better than Labour Governments, continue to to live there and escape the oet 

ttot ” P not From Mr. Jt MrttagM tlw UK hos moiugea its own. By and whiffle „awv Ihemde. 0 _f CTT.. Wgr thn were the 



PTCSlJS 'TttnmkZw (July 11 j -OneOommrat rf hhs of the UK PartiinenL He says, tion became unbearable the guesses, 
jut results they are: expecieu (juiy uj- xme commeni or quite rig^iy, that in theory Par- islands could and probably would Unhappily. « seems unlikely 

more than one ?S-Led-mtite riShtS-that liament could pass Bills repeal- opt for independence. And there that the islands will receive such 
thority: have more than one Ls tKe aSumoaf N: Australian and Canadian is no legitimate way by which consideration from . the Tory 

ss Annativated by acainst a statutory right of independence but that -there the UK could stop that action, party of which Mr. Maxwell- 

cS to Sdal inforaation would be extreme difficulty in In this connection one must re- H ys iop is a member. Mrs. 
Wl t i«- «3£. f5om under or 5S a«i<serts that' "the cost enforcing them. He then sug-member that the UK subscribed Thatcher strongly argued against 
TtMm SJ5 S it SSs tort thl SSSd b^STthe hunSeds of gests that in the . case of the to the United Nations Interna-the application of-CTT to the 

w control It seems that tw woum oe in ine nunan™ - channel Islands the UK. having tional Covenant on Civil and - Channel Islands when the matter 

ibvlMK not so Mr Rosaly was kind enough armed forces, could enforce its Political Rights of December 16, was debated in the House. But 

mapement are either Ctot so Mn Kogaty was^j nme* ^ wji I upoa them . Rea]ly . Sure iy ig 6 6 . Article 1(1) stated: “All according to Press reports she 

dely underetood as N assu nyiicie inthe" Gimrdian " (July Hr. MaxweU^yslop .must know Peoples have the right to self abstained in the vote, 

that they are not observed in aruue , JLJg ep u SBn of that that the . days of “gunboat determination ..." E. H. McDougail 

? ctice * niPb irn their article I estimated the cost of diplomacy" have gone for ever. A prime example of Labour’s pme Tree Cottaoe, 

Managers cannot Pick up^tneir ru , estima ap proxi- He then seems to have fallen attempts to bit at the Channel Cliemin des Mouli-w 

cessarir matdv £15ni a year and indicated straight into the tinp which Islands was the application of Sf. Lawrence. Jersey, 

This, catches so many who set out capital transfer tax to UK Channel Islands. 



\H> 01-6689311 

ABERDEEN CALL ( 0224 ) 722331 


Over 9,000 towns and cities across America. Door-to-door, Fast 

• * «. *, r tr* 


Financial Times Wednesday July 19 1978 



pate Corre- Total 

Johnson-Richards up 45% to peak £5.5m 

RECORD PRE-TAX profits or 
-o.5m by H. & R. Johnson-Rlchorris 
Tf|e> for Hie year ended March 31, 
1!ITS. are 4o per cent better than 
the previous year's £3.7!»m and are 
m line with the profit estimate 
nude in May. 

T1il> estimate was made at the 
time of llie bid by Hep worth 

The group's objective is to con 



Birmingham Mint . 3.34 

Peter Brotherhood . CM 

aA.T, . 1.01 

P. Harris . 2.98 

Hogg Robinson .. 2.98 

Illingworth Morris . 0.9S 

EL R. Johns-Richards ... 0.97 
Jones, Stroud . 3.07. 

of sponding 
payment dlv. 

Oct. 2 
Aug. 23 
Oct. 2 

Aug. 31 


Oct. 2 
Sept 1 

Oct 6 

subsequently abandoned following 
referral to the Monopolies and 
Mergers Commission. The 

ahiUidHiuneni uf this hid will in no 
way hamper J-iTs future expan¬ 
sion. the directors say. 

Earnings per share are shown 
at Mil against in.Ip and a final 
dividend uf <1.971 p tier 2.ip share 
makes a total equivalent to l.TSitp 

While the final dividend is 
limited t«< ihe maximum per¬ 
mit led. the directors say. substan¬ 
tially higher dividends are 
visualised given freedom from 
such control*- and provided earn¬ 
ings are maintained. 

Group external sates Increased 
from £4S:j7m la i'.Ttt.Um. Comparu- 
ihe figures have been restated to 
reflect the chance in deferred lax 
and ihe revised presentation of 






A noirage Shanki 



Hogg Robinson 


Birmingham Mint 



Illingworth Morris 


Bootham Eng re. 



Johnson Richards 


Brotherhood (Peter) 



Jones Stroud 





Magnet & Southerns 





Manson Finance 


Dewhuret & Partner 



Natl. Carbonising 


Duncan & Goodricke 




23 - 

Harris (Philip) 



Today's meetings 


HAT Group 



Western Board 


tinue the expansion of annual ^S® u0,en| s — oni 

sales and profits at a higher rate “J™ 1 Tn,st "%£hal 4 M± 
than that of the UK and U.S. toy S 9 

industries. This can only be done wartM^Bd HUIs* 1 ”* * 5 

by development of new and im- Western ■ wh _„, otherwise 

proved product categories on Dividends shown pence per share net except where otnerw 
'which the board places constant stated. 







2 3. 














1 . 6 * 
4. IS 





* Equivalent after allowing for scrip issue, i ~-r:“:-i'ii" pinai 

• - - -; -- J At 33 per cent tax rate. Final 

emphasis. . ... 

. . „ . , ia ~ by rights and/or acquisition issues. 

In the year ended 19* • group 0 f u p l0 j jjgn m he paid vf permitted, 
pre-tax profits rose from £>.9m to ta j ne( j g na ] intended. 

£6.4m but were below the dlrec- 

t On capital increased 
« ^ r -‘r cent tax rate. Final 
5 To reduce disparity. Main- 

tors’ highest expectations. The 
traditional rush of high margin 
orders at Christmas never 
materialised, with the result there 
was no growth in the second half. 

HAT ends 
year £lm 

e\chhn«L' profits 

or losses. 







RvliTU.ll Slli- 1 ! 


Pi-eik Mwc ui 



l K tax . .. 



' iTSVJS . 



:,M pruhl . 

. I.tu.1 

Kx. Immk>- lns.>« :. 






Kxirjurd. r<-r-»Pls 


Pn-I ilimli-iiil 



inKrmi t-riimiin' 



Mi Ml '»nlitu ry . 




were already being squeezed by 
rising costs and declining new' 

building activity. In an attempt 
to improve margins HAT has 

been diversifying into mainte¬ 
nance contracts, and away from 
new construction. It is likely 
that revenue from maintenance 
wilt contribute more than half 
total revenue for the first time in 
A SLUMP in pre-tax profits from m7S/79. The shares at 35p are 

Lt.lm to £2.D9ni is reported by on a p/e of 6.4 and yield 9 per 

1I.A.T. Group, specialist sub- c cnL 
contractor to the buildin. 

at Jones 

Magnet and Southerns 
optimistic after fall 

ANNOUNCING TAXABLE profits fell from an adjusted 30p to 27-Sp. 

down from a peak 04.46m to wh He the J oti S t w B 11 1 !SlS 

ru gam for the year ended March to 8.931S41p (Sp) net, with a final 

31, 197S, Mr. S. Oxford, the chair- of 5.43384lp. A one-for-two scrap 

man of Magnet and Southerns, the issue is also proposed, 
prepared joinery, door and Dividends absorb 12.85m 
ancillary product manufacturer, t£2-56m) enta'acd profit 

states “the outlook for the lower at ffi.ISin (£7 eo). 
profits current year is better." At mid- Pre-tax profits of Southerns* 
little changed at £124m, against way, the surplus was slightly Evans, a 
£1 J2i>m Jones, Strood (Holdings) lower at £7.08ra against £7.11®. declined from Ei.38m to £684m 

finished the year to March 31. Th e chairman reports that sides on turnover of £74.04m against 

15178 ahead from £2.l3m to to the home improvements market £69.7m. 

£2 41m pre-tax Turnover was up have maintained their upward Adjusted for ED19, tax took 
by BL54m to£23.50m^ movement and are expected to £2.58 m <£2.84®) and earn mgs per 

, . _.. _ continue at a good level. 

January, when report®c q-jje modest increase in new 



indu-iry. for the year to February 

At the interim stage, when 
reportin'.: a decline from 11.26m 
to 11.14m. the directors said 
turnover for the year would 

tin ihe event it improved from 

:■ two-year period nf reduction in 
net margins could well he in 

Finance up 

25p share are 29.09p (31.66p). The 
final dividend' is 36.2771p 

• comment 

Magnet and Southerns* profit fall 
of just under 2 per cent for the 
full year Is a good result when 
compared with other timber com- 




If Johnsou-lUeharris had 
rhnnsed as the basis of its cur- to it.3p. 
renev accnuming pre-tax profits stepped 

prospects were not unsaiisfartory 
at the lime. 

V«iriy earninqs per lOp share 
not are shown to be down from T.fip 
The dividend total is 
up from 1.8u26»p to 
2.0ii«p with a final payment of 
l.Oilfip net. A one-ror-three scrip 
issue is also proposed. 

IM77-7S 19TA-77 

Turnm or 

Front before lax 

Tai .. 

hTiifii after lax .. 

Miniirili i<r..fll . . .. 
Extra->rd credits 

AiailaBl'.' . 

Ulvid-.nil' . 

KL-uin.-ii . 

<V4 ;!S7 

2. W0 







would hate just missed the fore 
i-.isi it made around the time of 
ihe Hepw.irth Ceramic bid. The 
^rniip just dies its change by say- 
inu lhai ihe was based 
mi ihe revised basis. which had 

been adopted anyway to conform ,,£“!!£ .. 

with Hepwurth's presentation. - ' 

Neve rl he less clip uroup perform- 
ante is respectable enough. 

■loliusmt-Kichards enjoys virtual 
monopoly slams in Lite UK, hold- 
inu nr»und H.» per cent of the 
decora I i\e tile market. Products 
sold in thU top end of ihe market m mant 

carry a high added value which • comment 
supports the group during times Poor weather In January and 
of sluegish volume increases. In February is largely responsible 
fact volume sales have only Tor Ihe HAT group’s 48 per cent 
increased hy around I per cent, second half -pre-tax plunge Jeav- 

riverseas upe rations were more ing overall profits 33 per cent 

patchy, and although losses arc lower. Activity during the. bad 
i*einu reduced m the U.S. manu- weather almost came to a halt, 
faeturfng operations a loss of delaying completion of several 
£0.nm was still sustained. The substantial contracts and prevent- 
luncshuremen's strike in the U.S. ing the sturt of new contracts; 
and the had winter are blamed profit* are not taken until the 
fur the American losses. At 94p contracts are completed. The 
the shares yield 6.9 per cent and delay also meant that HAT car- 
-tand on P E of ij.2 (on a .14 per ried a labour force that was rcla 

higher first-half profits of £L17ip housing* activity expected during 
(£0.92® i. the directors antic!- ^ ^cond half of J977-78 didn't 
pated that the percentage in- happen say s Mr. Oxford, who 

crease then announced would fee | S that ^is is still to come and 
continue for the remainder of the ^ group will see a small 
year. jj Ut welcome improvement during 

Tax for the year took £493.000 the current year. _____ 

(£847.000) with ED1P applied. Raw material prices have panies, which have been averaging 

After minorities' of £10,000 last started to move upwards and he shortfalls of almost a fifth. The 

time and an extraordinary debit believes by the end of this y^r group' has been cushioned by 

of £282,000 (£351,000 credit), will have recovered much of the Magnet Joinery, where profits are 

profits attributable to ordinary lost ground; stock losses are not, almost a tenth higher thanks to 

holders rose from fl.42m to therefore, likely to occur in this th e boom in renovations. But. in 
• £l.3Sm. year provided there are no violent common with other timber com- 

In accordance with the change c han ses in the value of sterling, panies. Magnet has Incurred stock 
of accountin'* oolicv comnari- the chairman adds. losses as a result of the fall-off m 

sons have been adiusted ** Turnover for 1S77-7S increased softwood prices last year—these 
sons nave neen aujusiea. from x97Jg8m [(J £ 105i6 3 m ^ d ^ am0 uEt to around £500.000. Mean- 

fnvpmmcHi' serurities of £S“ om ■ Earn,n " s .before extraordinary pre.^* result included lower whfle, the group hds now taken a 

mn E securities of £o..000 5tems are given as 21.3lp (14 Bp) ruvestment income of £344,522 view on timber by buying in at 

per 25p share, while a imai divi- ( £({ 59992 ) and an extraordinary the lower prices, and stocks have 

dend of 3.0B7p i2.58p) lifts the credit of £225,019 (I12L836L risen from £27.6® to £32.6m. Since 
net payment to 4.667p ^vith ED19 applied, UK tax took then, prices have firmed up and 
£5.03m l£4.8mj and overseas tax this gives the prospect of stock 
J? £146,596 (£91,130). After a profits this year. Housing starts 

1.6675p. transfer of £11^99 this time to are still very flat but the trend 
deferred tax, available profit towards repairs and improvements 

to £2.02 m and pre¬ 
finished the April 30. 1978, year 
ahead at £613.000 compared with 
£440.000 last time. 

Pre-tax figure included an in¬ 
creased surplus on the sale of 

(£ 10 , 000 ). 

Earnings per 20p share are 
shown as :i.Rp (2.Sp». excluding 
sale of Government securities, , 1R 
37 ^ and the dividend is titled to 3.5p final 'of 0 7B675n ner 

with a net final ^ mem ordinary° share P maktf a ^ 
3 . 10 s ° Directors state that - <1045pI lotaL 

(4.lSp) per ordinary share 

rw the "current year has been'"at is" The 1977-78 pre-tax result in- dropped from’ £9j7m to £9.03m. remains strong and first quarter 
" ,3l i factorv and they confidently look eluded investment income -of Comparisons have been adjusted sales are 17 per cent higher. At 
ail forward to more progress. £115.000 (£163.000) and a share in acconiancejvith the change of 192p. the shares are on^a p/e^or 

;.ii.i (noo won from an associate of £14S.OQO " ” 

■its nross rvieouc . 2.IW* t.JTt (nil). 

11,3 E"’ 1 ” pront . Sg S2 As Mr. Philip Jones was 

tu-iaincd. “72 i6 appointed a director of Fothergili 

’ includes rc.'.wo i no iTooi surplus on and Harvey on October 13, 1977, 

accounting policy. 6.7, while the yield is 7.3 per cent 

Stated earnings per 25p share covered more than three times. 

sale of Government securities. 

DCM looks 
to big rise 

the group’s investment is now 
treated as an associated company. 



Following the confirmed 

Duncan & Goodricke 
confident of growth 

THE FAVOURABLE prospects for douhle the previous year, the in- 
Duncan Lawrie, the banking sub- crease being largely derived from 
sidiary of Walter Duncan and a rise in the value of the group’s 
Goodricke, coupled with the raucb shareholding in Eastern Produce 

Lord Westwood, chairman „ 

Dunbce-Conibex-Marx. the toy reduction in income tax rate from stronger ’asset position of the (Holdings) which had a particu- 

group, tells members that the cur- 34 per cent to 33 per cent, the group justifies continued confi- lariy successful year, the chair- 

rent year opened well and he is directors of Ch. Goldrei, Foueard dence in fulure pr0 fitabimy and man says. 

encouraged by the significant rise and Son have amended the final growth, Mr. Michael Butterwick, Whinney Murray and Co, 

. -- — in orders to date. He anticipates dividend from 1.8p to l-82p c hairman. says in his annual auditors to the group have quaD- 

wni tax «-h.»rue). They ane likely Indy unproducfive Tor much of u return to a year more in keeping maintaining 3 maximum permitted r-nort fied the accounts on three 

>" '■etiltf down, around present the final twr. months. This put with the group’s past profit per- total for the year of 2.71p (2.43p) -p. lir1 ' 

levels. further pressure on margins that formaneex net. 

Wm. Leech makes 
£2.02m cash call 

Newcastle based houebuilder. At S3p the ex-rights prospectnm 
Wiliam Letxh, is making a rights, yield is 12.3 per cent, 
issue to raise £2.02m. 

The 3m new shares are being 
offered to holders- on the basis of 
one-for-four at 70p each- In the 
market the shares closed 2p lower 
at BSp. 

Giving their reasons for the 
issue the directors say that the 

Hectic start 
for Cartiers 

Dealings in Cartiers Super-foods 

rights wms^entV ^s 

capital base and. enable U to Market dealers estimated that-a* 
expand, and to take advantage of «a°y ** sl, *Jf Cs :° ut of the 
opportunities that may arise in the j. Publfci. 

future for-the acquisition of suit- c Jf a "sed hands during the course: 

able land and companies. d ^’ , , » 

In the year ended "Februray 28. . °-ffer for sale priced the 
1978 Leech acquired Hugh Owen shares at^oSp each, which valued 
lor rim in cash and purchased the company at £7.1lm. But 

house building land costing following - the tremendous 
£1 54m response with 48,000. applications, 

Leech’s land bank last February flooding, in lor a total of 338m' 
stood at over 10,000 plots with shares worth £ 186 ra, the opening- 
planning permission togther with price was obviously going to be 
approximately 3800 acres of land, way above 55p. 

This land bank is shown in the The shares opened up arouiut 
balance sheet at a cost of £7.17m. 71 p and despite the day’s heavy 
which the directors consider is dealings they traded in a fairly:, 
substantially less than the current narrow range between 70p and- 
open market value. 75n. closing at 7Sp. 

Since the turn,of the year there At tins level Cbrtiers market, 
has been an increased demand for v alue is £9.44m The prospective 
Leech houses which has shown a . f j l J 1 . Ta j t f* iar ? * s 14 -® 

through in a 42 per cent improve- and the yield is Just under a per 
ment in completions in the four «“*- m 

months to June 30. While housing Market men were expecting 
reservations are only a rough active trading to continue through — 
indication as to the future, reser- to today* . . . ' 

valions taken during the same . Robert Fleming was the issuing 
four month period were 39 per bouse and L. Messel was the 
cent up on last year at 901. broker. 

The directors do not expeet this 


AT 10 % 

The coupon rate on local 
authority loans has- held steady 

Another Good Year 

for Hogg Robinson. 


1976 , 







before Tax 



per Share 




f ■•‘rSrti?Kiwi 

per Share 



r - L" a 


‘•t'A'Coi l .. sr.jr/ 5 * »rve/ v 2 ordmv!, shores >s> proposed. 

CciTirvonvny ..-r C«a»rt?icr. unc C’nef E-afy'ivs. Mr Morns Abbott, said: 

’ Drsr ;, e li*.*t'iq 3 .t’c. .'.‘ rr ’i'l? ■3trer£!r' t.r^rrIirg has afiecTSd our foreign currency 
!?'.«• rn-.g*> 3 sq 1 1^:01 v p-rfcr^-arce. Thai -A*? he-.*? t?een able ic main tain our 

u f c' - i '...ill.. ji.r to r:„-; y.yrviv oi oui booking .rt^re« 7 s, r.or ‘he 'eas! ou; major involvement 
" '-• k ‘ .'••m-i.j n-.r br;il , ' _ a .- ; >it.h -'as haa an e^cehen; '.ear 

IJn to A -jerr-m nave O'ire qga*i- Cvnrnbw»ed nam'd f !o our rn:recsea pionta and our 
*? v: 3 '" 1 ' ,;,rei ' 'J!'W bvs-’-.ess. pa:r»:uforl*. reinsurance has T-smlamed c useful pairern 
o’ Cv.i' ?‘a.el buv"ov.. f ns u jo another goon year. “ 


' Cv " l -‘‘ rtvi or^-ntr. a", 'a-.u.ts -:cr M -Vom th e C:-^oar. v Secretary 


C ovas Cn 1 3->'fc* : :5 
4." 13 Fi fi"> 

v/'Cy. £C2N 2J5 
Te‘ea~o r e D575 

"■i'e. .334037 

Further progress has been made grounds . . . 

in disposal of the group's proper- They say that in their opinion, 
ties reducing their book value the investment m Eastern 
from £2.69m to £1.6Sm at the end Produce should be treated as an 
of 1977, of which £346,745 was associated company and this 
due to write-offs of the value treatment would increase the 
of these properties. group's net profit and its invest- 

A further reduction in this ... . „ .. 

portfolio will take place in 1978 _ The directors say that if the 
in line with the policy of achiev- figures had been incorporated into 
ing a gradual disposal of these the accounts, net profit available 
investments, the chairman says, would have been increased by 
Gnod progress was made in all £871,090 (£300.856) and the mvest- 
main activities of the group merits by £1.09n> (£300.856). 
during 1977—in banking, tea ser- The auditors also say that the 
vires, property and investments, company V> unable to quantify the 
Pre-tax profits for the year contingent liability which might 
amounted to £311,379 against arise if the tax authorities in 
£526,234 after exceptional debits India were to be successful in any 
of £294,381 (£157,973 credits). The claim for tax which might be 
directors feel the group's under- made in respect of the company’s 
lying position unproved during secretarial income for prior years, 
the year and have recommended and accordingly they are unable 
an increase in the dividend from to form an opinion on this matter. 
lOp per £1 share to I2p. "" Th& directors also do not con- 

Net asset value also increased, sider it practicable to support by 
from 417p to 602p. independent professional valua- 

The exceptional items in 1977 tion the book amounr of proper 
included £346,745 written off ties held for development or 
properties, a £7,237 net profit on resale of £1.633,697. While the 
*ales of investments, net profit of auditors have no reason to dissent 
£14,012 on sales 0 / fixed assets tram the conclusions they are 
and £31,116 revenue adjustments unable to satisfy themselves as to 
for previous years. the realisability of these assets at 

Market value of the group's the book amount, 
investments at December 31. 1977, Meeting, Winchester House, EC, 
at £4.25m (£2.06m), was more than August 10, at 11 am. 

level of activity to 
throughout the year. 

They are forecasting a 10 per 
cent increase in the dividend for 
the current year making a total 
payout of 6.64p per share. 

An egm is convened for August tbi? week at 10 per cent at par. 

15 when a proposal to increase This week s yearlings are repay- 
the authorised capital from £3m able 00 July 25, 1979. 
to £4m. The rights issue is not ^The issuesare: -tilerdale 
conditional upon an increase in District Council London 

the authorised capital. Borough of Barking (£im). nf 

The issue has been under- London Borough of Bexley f£lm)..l t 
written by J. Henry-Schroder Grampian Regional Council (£}m).''- 
Wagg. Brokers are Rowe and London Borough of Hillingdon 
Pitman Hurst-Brown and Wise (£lm). The Receiver- for 
Speke. Metropolitan PoRce District {£Jm), U ;: ’ 

Birmingham District Council 
Comment illml. City of Liverpool Uljnn, 

When Leech made its market Hmpshlre District Council 
debut two years ago with a £3m If]® 1 }' Braintree District Council pl ¬ 
otter it did not raise any new f£|m). Worthing Borough Gouncil 
capital for the company. Now it (£*rn). London Borough of Grecn- 
li coming forward with a rights £ich (£lm). London Borough of 
issue, but the balance sheet is Harangey f£lm), Preston Borough 
not showing any strains though Council film). Doncaster Metro- 
there has been a sharp increase poUtan Borough Council tiimi. • 
in land prices—Leech reckons Wansbeck District Council 
prices have risen by around 60 Ketinet District Council (£im), 
per cent over the last year. Last Tunbridge Wells Borough Council 
February Leech had borowings <£hn). 

of £6.5tn compared with share- Two-year bonds carrying a- 
holders’ funds of nearly £12m. coupon of 11 per cent, priced at 
Now debt is down to around par and due on July 16.1980. have 
14 . 4 m so gearing is minimal, and been placed by City of Southnmp- 
last year financing costs, were ton film), and Trafford Borough 
covered by operating profits Council t£im). 
more than four times. Meantime Sedgemoor District Council has 
the company’s land bank could raised £Jm through the issue of • 
last around four years on the HI per cent bonds due July 13. 
current rate of completions but 1981, at par. . 

Leech is continually replacing Variable rate bonds priced at . 
land at higher prices. .Though £89J per cent, carrying a return of - 
there is-no profits forecast the S per cent above the Reference 
tone of. the company's statement Rate and maturing on July 13, • 

is optimistic and would seem to 1983, have beeu issued by London ■ 
bear out analysts projections of Borough of , Richmond-upon- • 
around. £3m pre-tax this year. But Thames tfioa). Luton Borough • 
Leech is doing little, with the Council (Xlm). Greater Man- 
dividend fup 10 per cent) while Chester Borough Council (£jm), - 

the discount is onfy 16 per cent Essex County .Council (£Im). 

Bootham well ahead 
in first half 

Pre-tax profits of Bootham 
Engineers, for the half year to 
April 30, 1978. increased from 
£196.100 to £258.800 on turnover 
ahead from £1.68m to £2^23m. 

Mr. John Rymer. the chairman, 
states that the main operating 
company had a slight downturn 
in profits but this was offset by 
an improvement in Bootham 
Materials Handling. The level of 
activity in the group's main com¬ 
pany has increased in the last 
two months, he says, and he 
anticipates that overall profit for 
the full year will be not less than 
the peak £582.000 for 1976-77. 

After tax for the half year of 
£134.600 against £102,000 the 
attributable profit came out at 
E124J20Q (£94,100) and earnings 

per £1 share are shown as 24.6p 


For the first time, directors are 
paying an interim dividend, of 
4.5p net. and they hope to pay 
another dividend for the year, 
subjccT to Government legislation 
outcome. Single dividend for the 
197G-77 year was 9J215p. 

Premises have been purchased 
in Abbey Road. Stirling, and 
negotiations are proceeding to 
enable Ihe premises to be adapted 
for the group's use. 

Development is continuing on 
the Melrose works in York, 
where two new workshops have 
been completed in the last few 
months. The new grinding shop 
at the Group's Scarborough works 
is now In full operation, directors 
say. increasing the works' 
capacity for roll grinding and 
crankshaft grinding- 
The Bacup works continued its 
progress, and in the last four 
months, additional machining 
rapacity has been installed. At 

Weedon. the group is developing 
its mechanical engineering 
services which were started last 

36 companies 

Orders for the compulsory 
winding up of 36 companies were 
made by Mr. Justice Oliver in the 
High Court on Monday. 

They were: J. C. Dealy and Son, 
J. B. R. Steam clean, Roger Norman 
Engineering, F. and J. Kincb, 
Lynmay and Deveng. 

European Chefs . (Catering), 
J. E. Joyce, Manchester Air Taxis, 
Rossan Builders and Cornuto. 

Bromley Estates, Erection Plan, 
Peter Eton Productions, Ratchiins, 
TAS Developments and Planridge. 

Emberwick, Brelmead, Rafa- 
grove, R, K. Martin Properties, 
A. L. Flower and Sons Group of 
Companies and Nafco (Foods). 

Miiviian Thorpe, Minehead In¬ 
vestments, Cemlex, Arhh-UK 
Agencies, J. Cauldwell Walker 
and Rockmark Holdings. 

Manchester Grains, Minitronics 
Internationa], Larkin Scaffolding, 
Nordec Horae Decor, Island Fac¬ 
tors, ALJ. Bacon (Contractors) and 
Thai Export International. 

An order for the compulsory 
winding up of KTV Films, made 
on July 10. was rescinded, and the 
petition dismissed by consent- 

Abbey Life 



SI Gomhlll EC3 3PD 
Gilt Ed|ed Portfolio Manaeemcnt 
S*prior Indox 1B.7.7t 
Portfolio i Income Otter SZ.I3 

aid 82.71 

Portfolio II Capital Offer ’ 127.14 

lid 127.07 

Single premium business at 
Abbey Life rose by 178 per cent 
to £24-3m, and new regular 
premiums rose by 38 per cent to 
£11.3m for the first half of 1978. 

The increase iu single premiums 
reflects greater interest in the 
unit-linked funds and regular 
premium business has benefited 
mostly from the surge >n pensions 
business, which alone rose by 
48 per cent during the period- 

Fixed Deposits 
with Lombard 


Jf you have £5,000 or more to invest for a fixed 
period of 3 months or longer, telephone our 
Treasury Department on 01-623 4111 or 
01-623 6744 for up-to-the-minute competitive 
interest rates. Interest is paid without 
deduction of tax at source. 

North Central 



Treasury DepL, 31 Lombard'SL, London EC3V 9BD. Telex: 884935. 




Premier ConsBliialed 
Oilfielis limited 

Salient points from the Annual Report 

Improved revenues from 
oil and gas sales 

Year ended 31st March 

Total Revenue 
Profit Before Tax 
Profit {LossjAfter Tax 






1977 ' 





* Exploration in the North Sea continues as the 
major activity. Premier operates for three’con¬ 
sortia with whom it participates. Plans for a new 
exploratory well on Block '3/23 are being agreed 
dependent upon Department of Energy approval. 

* In the seven years since entering the North Sea 
exploration scene Premier’s market capitalisation 
has increased from £450,000 to.aver £10 million. : 

* A strong balance sheet has been maintained which 
is necessary to expand the company’s worldwide- 

* interests. 

* A Royalty Interest is* the U.K- Piper Field was 
acquired with expected income after PRT of 
£1.84 million. 

* Iu California producing leases in ihe Midway 
Sunset field are giving an excellent return on : 

* In Italy the Reggente field interest has benefited; 
by 5 gas development wells and a new.gas.discovery^ 

* A new production sharing agreement in the Sudan: 

Red Sea covers 2.7 million acres including- sub*r 
stantial gas reserves. ■ v; 

' Copies of the Report and Accounts, which contain afoirjeykwdp 
current operations, may be obtained from. The Secretary,' _ 
23 Lower BelgraveStreet. London SWI WQNR.~ \ - 


! u 

i i- 



J ‘ ■ b 

: ; 

6.— Vm a 

r 3l* 




Financial Times Wednesday July 19 197S 

^ Illingworth Morris leaps 

Hcl.Smon better margins 

Hogg Robinson expands 
21% to record £9.5m 

!' "U 

"T ( : 

II !TTI PROFIT margins benefitting — - Emsley improved profit for the 

in >m re-equipment and rational!- DnADR METTIUAC year to £135,130 (£59.288) before 

H ion programmes. Illingworth BOAKD MEETINGS ^ of ns ^ 6 Sie 

13X3 bI * The foflowiiiB companies hare notified attributable sum amounted to 

to a peak dates or Hoard meetings to Uic Stock £106,534 (£20,804). Again no 

ibra for the year to March 31. Ewkanse. Such meetings an usually dividend la to be mid. 

»S. External sales were main- hpM !ar A* PWB«t-s of considerins! Ci . ... _ M.nt-™- 

nodal£1197m acainKt dividends. official indications ore nn Subsidiary George MbIUdsoii 

. lllfJln „ n araOabk whether dividends wocened turned round from a £24,379 loss 

it, riSriJ* export content an> interims or finals and the sub-dimions to a £7,437 profit before a tax 

d0wn from f4S - 6m 10 “SS b * 8ed M charge of £SS5 (credit £1,575). 

m; __ timeuhic. ^ Tbe attributable surplus was. 

' Jlm^toutod^u ! ao7m ™£* to™. fWa TdTfl'cTSisMT^nd' again' 

105m> thp direptn™ mrmld Owicast, Foreign and Colonial no dividend Is to be paid. 

'■ ;i™ . tllJSSK? 1 * lavesanem Tnm, Hmn awl Maumson, For clothing manufacturer 

- ..V~ favourable profit level tnverak. Planiaocm H oldings. Union S. Schneider there was a reduced, 

be sustained in the second half Discount i QBB .* ci<tll 7[Vfi (fSSl R77\ before 

»;«h iradidg condition, were niS* X. 

TTirv nnw MV Bum-rBcld Harvey. Dmny, Hampson £9,o00). The attributable loss 

_ y , at trading con- indiun-iw. lrg international. Slormon amounted to £144,999 (£222.177) 

.ions at home and overseas show THompson and Ever-shed. Shcffi:ld Re. again there is no dividend, 
tie sign Of. Significant improve- {n?K bmem Rouses. S’an hour General 6 , 

*nt. Investment. ■Wyrusham B’Udneoting. m . 

As it is envisaged that future future dates • COiTimenT 

rporation tax charges will be Aniloh^’ - Jah , n nilngworth Morris has been able 

A'cr ihan the full rate no further Carrington viyeiia ' aw. 9 t0 boost full-year profits by nearly 

ovuilon has been made in the Grind!ays . jnj» 85 two-thirds, thanks to the ration- 

counts for deferred tax leavin'* L,eda invcsnueni Trust. July 34 alisation programme at Hudders- 

v tax charge at £1.3m (£i^3m") p ^!.^..? ° a3lructil> ° . Jul7 28 Sold and some factory closures. 

r earnings per 20p share to Umdon Properties ......... julySe But trading conditions remain 

ierge higher at 9.86p (4.6p). A Angto American Asphalt . July si tough with only the EEC and the 

t final dividend of 0.984p takes F<>nu*nsier -. Jab So Middle East providing any relief. 

c total to l.484p (lfi23n| Gnome Photographic . An*, a Those markets helped to improve 

The results of one of the S~Lh«*.. jS Sr ra™ and cloth sales by around 15 

oup’s overseas, subsidiaries have ^ P*r cent, but this was almost com- 

■f been consolidated this time si<*e Gorman .. July K pletely offset by a 10 per cent 

d the comparative figures have Somponex . July 2® drop in sales of wodI and wool 

en restated. tops. Overall, In the UK, 1M is 

j977-78 1976-77 still] having to contend with sub- 

1000 *h» (B,t492p) per £1 share, costing »‘dised imports from Comecon 

wnaJ sates . 1 19.719 i'550i £274 000 f £2400001 countries, while it hag virtually 

*nct eipori ,. i?,^8 tfjrt In ,W Sie Sffin division at withdrawn from tire tops market 

iviircrt capon .' 14.288 11.175 Winterbotham, strachan and overseas hecaus of fierce competi- 

w^cfR . 883 776 Ptayne the surplus jumped to tion. Although there are few signs 

£*“ pron ‘ . £1.65ra (£353,067! before tax of of any marked upturn, the com- 

? prMi " . . ;-S” £125262 (£163.481). The amount P»ny should continue to benefit 

ributabie: .. a!3M iis3i attributable to the bolding com- r™. 111 v . conl ^n mn ? rationalisation. 

. . ifcreoCT ill vide ails . 91 91 n any was £l. 53 m (£189,586) and ? ut 11115 wf “ 1 °P 1 y Pf° Te “ “ a 

\» it:I ivwry dividends . sts 515 th e nrdmarv dividend is ud from face-saver in the short term as 

%?v * I'l-v i Alter minority Interests. S?5 totMOMO ^ the P««nt level Of Underlying 

W \i Of the group's subsidiaries now In’the worsted and merchanting 

porting Wootcombers (Hold- division Salts (Saltalre) recovered J r h ^ ^ a ^ 5, a _ l 
gs) shows a slide In taxable from a £28.895 loss to a £34,485 ° v ® r S ' whlle ^ yieJd “ 

ofit to £l.73m (£2.54m) before profit before a tax credit- of . per cenI ~ 
x of £396,000 (£846,000) for the £195,707 (£8^59). The attribut- 
ar to March 31. ... able surplus came out at £23,192 

The attributable sum came out (deficit £20,136) and again no dlvi- " 1 

£133m (£1.7m) and the net dend is to be paid, 
vidend is raised to 6^66Gp Worsted manufacturer John 

NCC awaiting growth 
from new activities 

F HTS first annual statement as £116,000 compared with a profit of 
airman of the National Carbon- £251,000. The dividend is U3p 
ng Company. Mr. Michael Gaze (^P) reflecting the 
yu that the group cannot expect 011 investment sale. In future 
‘achieve a wholly adequate level it .is the directors sum that 
profits until the growth of new dividends be covered by profits 
tivities and future dividends from trading activities. . 

nm the investment in London During the year both- NCC 
d Scottish and Marine Oil come Rexco and Scottish Rexco- sold a 
fruition. greater volume of smokeless fuel 

The reorganisation which has in the UK domestic mai £®t 
ken place over the past three m the previous year. These two 
ars is now complete and he companies fortunes could be 
els that a period of consolida-. appreciably better and th e . ch5 J r ‘ 

.r^bould show steady lmpro. fr man^ « SdalS 

g; s EB5S «dity by S uS d 2 ,ri S£u , ' £ i! as 

al busln™ to .W* ™ rese "“ th0US ‘ 1 Ur *' ”* 
d^nnead interests, two further ■ # . . r „_ 

y \os were made to strengthen During the year NCC pmi- 
r group's position. The first meraal Vehicles achieved ; ren- 
.s to reduce borrowings during siderable growth both in expandon 
? year to lessen the impact on profitability of its depots, 

jH ts of bank Interest (reduced.attwmng a. turnover, of £mm.e.i 

.m 14GO.OOO to £348,000 ‘ in An analysis of -group turnover 
r7-78) and the second was to and net trading profit shows (£000s ; 

;pose of the group's small omitted)—Rexco .smokeless fuel \ 

naming interest in transport— £12.913 (£12,508) and £305 (£699 
.» subsidiary concerned incurred including X1S1 profit on property 
oss during the year of £219,000. sales); vehicle distribution £12,61a 

--v«Td C tor SdtStoTSP.f™ mtoSJriJaBM^oSw’iidfl* 

^oKtmen^ in^ I ASM(f * the f oaJ ,£250, a totaj of. £535 

m.raSriess lbssesof.^dttctmlmuea 
of which hate been appuea... • mn /«a?) " 

^PBHHHpirards the lowering of overall bU rw^ h fi rman Solains that thfe 

V^^^^^irowinss from f3.04m to £1.95m ™akmS ul the 

® . 1 * i NrC ldU ^imrhen:W enrineerin*' division - have had 

r„d ly^-ssssa. 

V . - J (» .. ... full order book and a substantial 

* t * 8 . IT ite profit .on P 0 *— flow of-enquiries,with which to 

to £ 82 d .000 which was h^gj n ^e current year, 
duded In extraordinary items qj businesses taken over in • 

thu profit and loss account Hutuinn ifl 76i A 0T Flowmeters • O Ik^KSfic Snvi? 

se group also took the opportu- good profits and is planning j n TQ7fi -*oc cw 

y to sell the small holding of ^ or a substantial expansion of its ' 'J} l“/ 0 , Ch OO^O CM 

i.OOU ordinary snares in on ac tivities over the next two years. OOHdTSme 6(OSS DOIT 

ploralioti (Holdings) real i^ m ^ AOT Constructors was incurring SdVilKlSflBDIBSOnlBCl2( 

17.000 and showing a proht of tieavy losses when it was acquired ^ IhoRNP 

w -°°°- o and continued to do so, albeit at u 

rh« group still holds 3.3m a reduced rate. The chairman n ow m any QBVgipping 

.SMO tirdinarios and 25,000 expects that subsidiary to move COlffTtnOS COTI StlCW ^ 

nmon shares in Ranger Oil into profits during the second half g pfl/fonTKinCfl 

anada). of 1978-79. f |fko thlc? Jm&S, 

n the year ended March 31, J97S Meeting, Hyde Park Hotel, SW, . JlKBiniS. /Mj 

’ ; group incurred a loss' of August 3.1 at 3.30 pm. 

"H^Armitage Shanks looks w 

n ° e ' for marketing boost 

halftime, when the surplus 

m )K! 

\i in 

en restated. 

wnaJ salos . 1 IS .710 

lomr . 57J41 

lioct export .. 47.268 

mlircrt capon .’ 14.288 

Ivvttcaa . 883 

Max profit . 0.76a 

X . Of 

T protlt . 3.484 

ribotable! . 3.3311 

.■(creoce dlvidoaite . R 1 

ipun* dividends . 573 

i Afttr ounonty Interests. 

THOUGH THE strength of 
sterling affected the group's 
foreign currency earnings, Hogg 
Robinson Group expanded taxable 
earnings for the year to March 31, 
1978, by 21 per cent from £7.86m 
to a record £9.51 m with turnover 
up £5.51m at £30.Q5m. 

The contribution from in¬ 
surance broking improved to 

£4.82m (£3.79 m) and Lloyds 

underwriting agencies were better 
at £222m (£1.31m) but in ship¬ 
ping and freight forwarding 
there was a deficit of £241.000 
(£95,000 surplus) and in re¬ 
insurance underwriting the loss 
was £ 81,000 (nil). 

Investment income and profits 
were marginally down at £1.76m 
(£lfi7m). Profit from travel 
agencies amounted to £407.000 
(£201,000). and from equipment 
leasing £30.000 (nil). The share 
from associated companies was 
maintained at £596,000 (£591,000). 

At midway, when the surplus 
was ahead to £3-2m (£2.55m). Mr. 
Morris Abbott, the Chairman, ex¬ 
pected profits to continue to be 

1977-73 1978-77 

£008 moo 

30.033 * 14-341 
IS. 696 

Turnover . «... 30.033 * 14.544 

Insurance broking . 22.301 1S.6B6 

Lloyd's underurriUnfi _ 2.588 1.598 

Travel . 2.448 5.9C 

SUppIng and freight. 2.724 22309 

Profit before tax .. 9JU 7J59 

Insurance brnkSns . 4.317 3.755 

Lloyd's underwrlnng. 2,221 1^14 

Travel . 407 =01 

Shipping and might loss 241 *95 

Reinsurance ibw loss ... SI — 

Equipment leasing . 30 1 — 

Invtmxnem Income 1.783 1.873 

Share »T .. 598 591 

Tax .. 4.777 3.HE 

To mlnin-Uies . 350 =89 

Exchange loss? _:.... 188 *117 

Attributable _ 4.196 3.905 

Dividends ..— 1.400 1J-M 

Retained .- 2.7B6 2.681 

■ Profit, t Also includes special pension 

He now says that the company 
was able to maintain profit growth 

due to the spread of its broking 
interest, not the least its major 
involvement in UK insurance 
broking which had an excellent 

Shipping and freight forward¬ 
ing are currently trading profit¬ 
ably, he adds. 

Earnings per 25p share rose 
from 1754p to 19.1p and a net 
final dividend of 2.58p steps up 
the total to 6-2lp (5.525p) a one- 
for-two scrip issue os also 

9 comment 

Hogg Robinson's figures — profits 
21 per cent higher — are right in 
line with stockbrokers’ expecta¬ 
tions. As Is usual, the bulk of the 
group’s profits have been earned 
In the second half — some £6.3m 
of the full year total — as the 
mmp of the broking business Is 
completed, and tbe underwriting 
agency profits are included. Tn 
fact, underwriting agency business 
is rather beter than anticipated 
— tbe performance contributing 
over a of the overall improve¬ 
ment, and more than offsets the 
problems in shipping and freighr 
forwarding and the downturn in 
investment income (from lower 
interest rates)- On the insurance 
broking side there is nothing ex¬ 
ceptional In the 27 per cent gain, 
and the performance there has 
been supported by a buoyant UK 
Industrial non-marine insurance 
market, which bas probably 
chlpepd in around £2ra of the 
broking profits. Currency move¬ 
ments on overseas earnings (about 
a quarter of total profits) lopped 
off £ 500 , 000 -£ 600 .fK )0 from overall 
profits. Meanwhile, group effi¬ 
ciency has been tightened up lead¬ 
ing to over a point drop in the 
expense ratio to 7S.4 per cent At 
187p (up 3p) the shares stand on 

covered threefold. The shares are 
unlikely to outperform the sector, 
a P/E of 9.7 and yield 5 per cent. 

Brewers—Bury St. Edmunds 


to £lm 

AFTER DOUBLED pre-tax earn¬ 
ings from £256.000 to £512,000 at 
halftime. Syltone went on to finish 
the year to March 31.197S, with a 
record £ 1.04m, compared with 
£645,629 previously. Sales by the 
group, which has interests in 
engineering, pipe system supply 
and whole electrical distribution, 
were up £3.71 m at £11.24m. 

The directors said in January 
that all divisions had been operat¬ 
ing profitably and in line with 
budget. Although levels of 
activity were generally maintained 
they then also warned that exten¬ 
sive work on new buildings at 
Drum might affect profitability to 
some degree. 

After tax of £240.463 (£125.425) 
net profit for the year improved 
from £520,204 to £802.870 for 
earnings per 25p share better at 
26.36p (21.63P). A net second 
interim dividend of 4.2233p at the 
33 per cent tax rate takes the 
total to a maximum permitted 
5B235p (5.0553Sp). and costs 

£129.844 (£111.326) Jess waivers of 
£56,675 (£54,171). If dividend 

restraint is relaxed or removed 
the directors intend to pay a final 
of 125p or such portion of this as 
proves to be permissible. This 
would cost an additional £38,429 
before waivers of £16,774. 



52 weeks 

52 weeks 

to 30 April 

to. 1 May 











Turnover 38^560 32,178 

Profit before tax 4^252 3,613 

Taxation 2,134 1,773 

Profit after tax 2,118 1,840 

.Dividend: Second interim pa y me nt declared making 
Total distribution (including tax credits) 10.89 pence per 
share against 9.9 pence last year. Dividend limitation 
permitting a third interim dividend of0.7443 pence net 
<1.1109 pence with rax credit) will be paid. 

In his revieza of the year, the Chairman, Sir Hugh Greene, 
KCMG, OBE, says :— 

0 Despite difficult weather conditions last summer, all 
our main operations contributed to an improved 

9 We are satisfied that our prices are truly competitive 
both at wholesale level and in our managed 
This is an important factor in maintaining our sales 

0 Investment in brewing capacity and processing plant 
continued and otxr capital expenditure budget for 
1978/79 is over £4m. 

THE last few months, efforts 
Annllage Shanks, particularly 
ihe manufacturing side, have 
vn directed towards traditional 
-^■^rkelins strengths and Mr. 
.ineiiy Campbell, chaiman, feels 
. [..( this policy will bring Its 
jjjjfiyards io Hie nest twelve 

iifii^'lowcvcr there are still no signs 

9 l .. > >_imnmtinmanl in 

could otherwise have been 

Meeting. Birmingham, August 
10 at noon. 

!»*•* dependent, and which, in turn 
JvMiendenl on the vagaries of 
notary policies, both national 
I international, Mr. Campbell 

■ S 

n the year ended April I, 1978, 
1’* -t.ix profits advanced from 
;»i io £2.4Sm from higher tunj- 
;!/ r of d.SSra t£2"m). The divi- 
,d is 4.3p against 4.2S46p. 
lad it not been for the partfeu- 
v sharp reversal of profit ui 
Australian company the 
ires could have been regarded 
-•ncouragin(j the chairman says. 
.Ithough the volume of sales 
rime more buoyant, higher 
r- 4 »>is were not able to be 
ained due to the forces of com- 
it ion in the market and the 
ilN imnosed by price legislation 

lhC UK. 

luring Hie year there were 
Hell off against trading proht, costs in the dosing down 
he Scottish fireclay factory ana 
he reduction of activity which 
: rewarded as uneconomic at 
cr factories and the consese- 
ntiul coals of "Tiling down 

]<,o included wore costs hi¬ 
red in connection with the 
lopolics Inquiry. All these 
>UtttOd to some £300,000. 

In- UK management structure 
boon reorganised to form four 
or divisions, namely, ceramics, 
ineenng, plastics Md wooa- 

ast Year, Uio total national 
mh/ starts and completions 
e each lower than in the two 
■•ceding years. However, efforts 
eh aru being direeied to the 
■rnvements in the home 
ijher with a considerably 
■roved performance in export 
-kois. which took 20 per cent or 
group** total ceramics produc- 
i, maintained profits which 




Alliance Investment, 1-2, 
Laurence Pountney Hill, E.d, 
2^0. ' Attwood Garages, Wolver¬ 
hampton, 12. Bfflam (J.), 
Sheffield, 12. Charter Consoli¬ 
dated_ 100. Old Broad Street, E.C- 
12. Courtaulds, 36, Wigmore 
Street, Yi m 12. Dura pipe inter¬ 
national. Waldorf Hotel, W.C- 11: 
Elqctra Investment Trust, Electra 
House, Victoria Embankment, 
2.15. GE1 International. Dor¬ 
chester Hotel, W, IU5. Guthrie, 
20, Aldermanbury, E.C.. 12. Inver- 
gortlon DUtiUerx Glasgow, 12. 
London Prudential Investment 
Trust, 20, Fenchurch Street, E.C.. 
11.45. Metal Box Overseas. Read¬ 
ing, 12-10. Northern Securities 
Trust, 16. Finsbury Circus, E.C, 

12. Suimie Clothes, Leeds, 12- 
Wedgwood, 34, Wigmore Street, 
W, 11. 

at Brownlee 

Since the end of the financial 
year the level of demand at 
Brownlee and Co. had improved, 
and there were Indications that 
this would be maintained into the 
winter, Mr. P. A. Barnes, the 
chairman, told the annual 

Cross margins seemed likely to 
improve, but this change would 
not have any significant effect 
on the results for the first naif 
of the current year, he said. 

On dividends, he said it was his 
hope that when directors 
to consider the amount of tne 
interim dividend for the current 
year, they would be able to flo 
so solely by reference.- to the 
company’s financial position. 

OZedhkm In 1977lti0 

Steel ingotproducfionlodayb otl2.l3l 

71 million Ions peryear. The . Another e 

estimate for 1985 is 35 million Brazil's 

tons per year. As you con sea . growth 

Iheprosp^inBrazUfe^raSTia years, 
are pretty good. 1 

Q Forap trade. 

In 1970/ Brazil's 
©mods were valued of 
2.748 billion dollars. 

In 1977they reached mefiaure ©SfflpMk&ig, 

aE12.139bUiian'do!lai5, In 1964, its total 

• Another example of was 66,000 DV 

■a Brazil's remarkable In 1977. Itret 

^ growth in the last few A ttiefigureof 

In 1964, its total capacity 
was 66,000 DWT. 

In 1977, if reached 
the figure of524,030 
DWT. We think such 
figures should cany 
some weight. 

O Domestic savings. 

In 1976, ctf 35.5 biDion 
dollars the Gross Domestic 
Savings represented 25% of 

How many developing ^ 
countries can show 
a performance HIk 
like this? Mmm, 

j a \, 

O AhraftmdosfryL 

The Brazilian aircraft industry was 
bom in 1969. In 1976 it already 
held the position of sixth largest 
aircraft industry in the western world. 

O Beciricpffvm: 

generated, out of an estimated 
150/000 Mw potential capacity. 
What other country offers such 
potential tor hydro-electrfcily? 


f J 248.9^ increaMin l 

Today Brazil can speak 
to more than 30 
countries with out the aid of a 
telephone operator, and 526 yB|J|€ , §p 
Brazilian twins communicate 
with each other by Direct Dialiing.^|H^ M 
A notable performance by ^ 
any standard, 

24 8.9% increase in 
production over 1975 
fi 0 urBS - 

r •• ^ * n ^ w°rfd 

■»3K‘iSc3^-^SSE* * would you find such an 

expansion performance? 

r O Domestic BKsiceL 

Of the 116 million Brazilians, more 
than 50% are under 20 years old. 
Have you already considered the 
potential of a market of this size? 

61 ® 


In 1972, Brazil's ports 

cargo, in 1976Ihis figure “ 

increased to 210 million tons. \ 
Another guarantee tfxrfBrazil is 
equipped to handleyour business. 

O A^xrifure. 

Brazil covers 8.512 million square 
kilometres (3.287 million square miles), and 
is becoming the second largest 
food suppllenntheworld/with only 5% of this 
area under cultivation. Where else can you find so 
much land awaiting development? 

F There are many counlries in the world where you can 

invest. But they don't ail otter the same conditions. 
Makeacareful analysis, and you will find that no other 
country offers more possibilities or greater resources 
than Brazil. 

So choose Brazil. And when you do, count on Ihe help of the 
latgesfBraziiianbanlc Banco do Brasil. 

^ far gateway to bosb ss in B zi. 


tit 1 


Consolidated Investment 


Randfonieiu Estates 

The Randfwitcin Kstatr* Gold Mining Company, Witwaterarand, Limited 
Issued Capital; K10 827 J06 

(Divided into 5 413 553 shares of R2 each, fully paid") 



Ore milled — tons.. 

Gold produced — kilo grama . . 

Yield — crams per ton. 

Total revenue — per ton milled . 
Working cost — per ton milled . 

Operating profit —per ton milled 


Revenue from gold 
Working co-it . . 

Working profit.. 

Tribute revenue ......... 

Net sundry revenue ....... 

Operating profit .. 

Net interest payable.. 

Nut profit on uranium (.Loss;.. 

Capital expenditure ............ 

Dividend declared ............. 

Quarter ended 

Six months 




312 000 
■1 478 

3U 7 000 
•1 4^1 

619 000 

Kb 1,63 










2125 237 

7 031 


7 264 

R46 108 
14 293 

18 206 


13 607 






18 357 

13 754 

32 111 

Rl8 282 

R13 537 


R19 377 
R10 827 

R15 610 

R34 987 
R10 827 


A provision lor taxation is not required as the company has an estimated loss for tax 

From 11th April. 1978, payment for gold production at the official price plus premium on 
market sales distributed monthly was replaced by payment at the market price. The 
non-recurring balancing payments resulting from the changeover distorted revenue for 
the current quarter which is therefore not comparable,with past or future quarters. 


A total of S 635 metres was advanced during the quarter (7 728 metres). 



Sampled — metres.. 

Channel width — centimetres .............. 


Av. value — grams per ton. 

.— centimetre grams per ton .......... 


Av. value — kilograms per ton.. 

— centimetre kilograms per ton.. 

Quarter ended 
30.6,78 31.3.7S 

me i 52i 

152 131 


Quarter ended 

Sampled —metros. 912 864 645 STS 

Channel width —centimetres . . 163 139 16S 104 


Av. value — grams per ton .... 16,2 9,0 17,1 16,9 

— centimetre grams per 

ton. 2 673 1251 2 S73 1T5S 


Av. vulue — kilograms per ton*. . 0,199 0,439 0.210 0.5S0 

— centimetre kilograms 

per ton. 32,84 61,02 35,28 60,32 


In uddition to the above, development at the Cooke No. 2 Shaft on the ES reef gave the 
following results: 

Quarter ended 

Sampled — metres. 33 51 

Channel width — centimetres ..• 229 169 


Av. x.iluu — grams per ton. 6,6 1.3 

. — centimetre grams per ton .......... 1 511 226 


Av. value — kilograms per ton. 0.419 0.140 

— cuntimctru kilograms per ton. 95,93 23,66 

The vjluos shown inthe above tabulations are the actual results of sampling develop* 
mentavork on reef. No allowance has been made tor moditiculions which may be neces¬ 
sary when computing ore reserves. 


Pro-operational testing and commissioning of the new recovery plant has been sub- 
Man t tally completed and trial milling commenced. Production of gold and uranium will 
commence in the third quarter. This plant is expected to reach its rated capacity by the 

Cooke No. 2 shall achieved its rated capacity during the quarter and additional tonnage 
was stockpiled at the new plant. 


Dewatering operations are proceeding apace and 24 level should be exposed during the 
third quarter. Scope re-equipping and mining operations are on schedule and additional 
tonnage of broken ore- was stockpiled at No. 16 shaft. 


The Millsite uranium plant treated 266 000 tons (22S 000 tons) during the quarter which 
represents 89*’,. of its designed capacity. Uranium recoveries have not yet matched 
expectations hut are significantly up on the 1st quarter and efficiencies are showing 
steady improvement. Tlic plant operated at a profit foe the quarter. 


being achieved from Cooke No. 1 shaft and :m a result, there will be u substantial 
reduction in the average gold grade of ore milled in. the third quarter. However, it is 
expected that there will be a concomitant increase m uranium recovery. 


Dividend No. $6 of 200 cents per chare was declared on 5th -June. 197S payable to ns em¬ 
bers registered at the close of business on. Friday, 23rd June, 1978, 


Net expenditure on mining assets during the quarter amounted to RI9 577 000 bringing 
tho total net capital expenditure nt 30th June, 1978 to R26G 357 000. 

This total includes expenditure at Cooke Section amounting to R2Q7 951 000 . At 30th 
June, 1973 there were capital commitments amounting to approximately £9 000 000. 

For and on behalf of the board, 

_ B. A. SMITH 

F. J. T.. wbtjjs Qirectara 


Elsburg Gold Mining Company limited 

Issued Capital: R30 203 UUO 

(Divided into 30 2M 3 000 units of stock of Rl each') 


Stockholders nre advised to study the operational results published by Western Areas 
Gold Mining Company Limited. 

Six months 
Quarter aided ended 

SO. 6.78 31-3- 78 30.6.78 


For and on behalf of the board, 
P. A. VOS W1ELUGH n - , nro 
F. J. L. W ELLS Dinxtors 

Western Areas 

Western Arcus Gold Mining Company Limited 
Issued Capital: H40 306 950 
(Divided into 40 306 950 unite of stock of Rl each). 



„ „ 30-6.75 

Gold . 

Ore milled — tons .............. 1 027 000 

Gold produced — kilograms ......... 5 751 

Yield — grams per ton ............ 5,6 

Total revenue — per ton milled . . R31,56 

Working cost — per ton milled . *.24,15 

Quarter ended 
6.78 31.3.73 

99] 000 
5 64* 

Six months 

5 018U00 

Operating profit per tori milled ........ 





Revenue from gold .. 

Working cost ............ 


24 801 

R27 001 

23 962 

R59 1SS 
48 766 

Working profit... 

Sundry revenue ... 

7 383 

3 039 

10 422 

Operating profit .. 

Net interest receivable ............ 

7 6T2 

. *7- 

3 260 

10 872 

Profit before taxation ............ 

Taxation. .. 

7 884 

3 477 


11 361 

Profit .. 

R7 314 

R3 433 

RIO 746 

Capital expenditure... K5 195 R1610 R6 805 

Loan Levy. R69 R6 R75 

Dividend declared... R3 225 — R3225 

Note: . _ 

From 11th April. 1978. payment for gold production at the official price plus premium on 
market sales distributed monthly was replaced by payment at the market price. Tho non¬ 
recurring balancing payments resulting from the changeover distorted revenue lor the 
current quarter which is therefore not comparable with past or future quarters. 

DEVELOPMENT „ six,™*. 

Quarter ended ended 

, 30.6.78 31.3.78 30.6.78 

Advanced — metres .. 9196 8914 18110 

Sampled — metres... 1389 1 506 2 895 

Channel width — centimetres. 188 1-55 176 

Average value — graxru per ton. 6.9 7.6 7.2 

— centimetre grams per ton . . 1297 1254 1267 


• Quarter ended 

_:_ 30.6.1978 _ 

Toal Venters- Elstant £fabuni 
All dorp 3f.lft.ive Indivi- 
Contact Reels dual 
_ ■ _ fed _ Heefa 

Sampled metres ... 1389 111 498 780 

Width — centimetres . 188 103 202 190 

Av. Value — grams per 

ton . . . 6,9 13,0 6,3 7,0 

— centimetre 
grams per 

ton . . . 1297 1133 1273 1 330 

Quarter ended 

31.3.1978 _ 

Tuul Venters- LIftburc Ebbiu-g 
AU dorp 3!u*ftive lodiu- 
IteeGl Contact Keefs dunl 

K-vf Tlevfi 

7,6 12,8 6,6 8,0 

1254 1 337 1 148 1320 

The values shown in the tabulation are the actual results of sampling- development work 
on Met No allowance has been made for modifications which may be necessary when, 
computing ore reserves.' 

Included in the comparative development result* is an advance of 246 metres in the 
metres), being developed from South Shaft towards the site of the 
proposed S.V.3suh- ve rtical6haft. Progress m both ends now totals 2 435 metres. Also 
included is exploratory developmentfrom the North Shaft, on 48 and 50 levels, towards 
the area on the Middle Elsburg reef horizons delineated by drilling as being thewnobt 
favourablelor posable exploitation. An advance of 95:) metre* was achieved for the 
quarter 1580 metre*; and progress in these two ends now totals 1 540 metres, 


IS* 10 ascertain the pot “ ail ot 11,0 Mddte 


36 Inter level 
No. 1 
41 Level 
No. 3 

75 Level 
No. 3 

Channel Average Value 

_ Width Gold Uranium 

centimetres g/t cm.g/t kg /1!t 

300 Trace — 0,16 

175 0,4 70.0 0,11 

„ 135 6,8 783,0 0,51 

Not intersected west of sub-outcrop 

90 2.9 261,0 0,04 

96 4.3 408.6 0.10 


Dividend No. 26 of S cents per unit of stock was declared on Sth June 1978 payable to 
members registered at the close of business on Friday, 23rd June, 1978. 


The significant increase in expenditure for the quarter mainly arises from decisions to 
expedite the installation of refrigeration plant and extend compressed air plant facilities 
at the South Shaft, to increase the rate of access development to the Middle Ebburgs 
and the purchase of hoists required for anew sub-vertical shaft to be sunk inthe 4 En*t 
area of the mine. This small sub-vertical shaft; will augment the 4 East sub-incline shaft 
currently opera ting between 50 and 56 levels, thus enabling development and exploita¬ 
tion of this part of the mine to be expedited. 

Net expenditure on mining assets during the quarter amounted to Rs JS7 00n with other 
capital expenditure during the quarter amounting to R97 000. bringiag the total net 
expenditure on capital account at 30th June 3978 to R236 39U OUu. 

At 30th June, 1978 there were capital commitments amounting to Rl 200 000. 

For and on behalf of the board, 
P. A. VON* WIELLTGH n . ‘ 

F. J. L. WELLS ■P* rector * 

JSUi July, 1978 

Johannesburg Consolidated Investment Company, Limited 
Consolidated Building, Fox and Harrison Streets, 

Johannesburg 2001 

P.O. Bax 590, Johannesburg 2000 

Mr Ward withdraws offer, 
but lends KCA £2m ! 


Mr. Travis Ward, Ibe Texan 
oi] millionaire who has' been 
rescuing KCA International 
(formerly Berry Wiggins) from 
its embarrassments in Nigeria, has 
now lent the company a further 
£>m at the same time as he has 
withdrawn his bid for the whole of 
the company. 

Mr. Ward has apparently bowed 
to the Board's belief that his 
April offer of 29p is too low in 
view of the very improved pros¬ 
pects of the company. So he has 
decided to retain only the 24 per 
cent of the company which was 
part of the rescue package os 
well as appointing his chief 
executive. Texan banker Mr. Lewis 
Johnson, to the Board. 

Mr. Paul Bristol, chairman of 
KCA, admitted yesterday that 
the main reason for these im¬ 
proved prospects was Mr. Ward’s 
Intervention, but he also claimed 
that the company's trading posi¬ 
tion was also much brighter. 

In fact, had it not been for a 
second intervention by Mr. Ward, 
the company would still be in 
considerable difficulties, as Mr. 
Bristol admitted. 

The arrangement with Mr. Ward 
ih November. whereby he 
acquired 24 per cent of KCA 
(through the issue of new shares) 
and paid the company for its 
Algerian oil rigs—a package suffi¬ 
cient to cover the cost of KCA’s 
523.2m loans from Manufacturers 
Hanover—was conditional on the 
rigs leaving Algiers. 

That event was held vp for: 
some months because KCA bad 
some $3.Sm liabilities in Algeria 
which had to be met before the 
rigs were permitted to leave port. 
Briefly Mr. Ward has taken over 
these debts by lending KCA t 
$3.fim for a year. 

Now Air. Bristol says that KCA 
will have toiai borrowings of 
under SlOm compared with an 
issued capital expanded by $3.6m. 
In addition, it is now a much 

more streamlined company with 
the elimination of the troubled 
Nigerian side and the “ Sea 
Search" subsidiary. . . 

Trading in the two remaining 
subsidiaries, KCA Drilling and 
BW Mud is apparently very 
improved and Mr. Bristol expects 
the 197S results to show an 
improvement over last year. 

The report and accounts for 
1077, due out within a week, will 
apparently contain «orae final 
write-offs on the Algerian activi¬ 
ties, but since the end of June 
the company has no further 
liabilities there. 


Manchester Liners, the UK ship¬ 
owner. has reached agreement in 
principle with Seatraln Lines or 
the U.S. and IC1T of Saudi Arabia 
to form a joint company to 
operate container ship services to 
the Middle East and the Mediter¬ 

Manchester Liners and 1CIT will 
acquire 51 per cent of the new 
company from Seatraln for S16m. 
Full agreement is subject to 
approval by the boards of the 
three companies, 

ICIT is owned by members of 
the Alirreza family, but the new 
company will be operated by staff 
appointed by SeatraiiL 

The acquisition price will be 
paid by Manchester Liners and 
ICIT in the form of an initial pay¬ 
ment of S3m; SSm will he paid 
by bank gaurantee notes and the 
balance will become payable in 
the future, at rates which will 
depend on the performance of the 
new company. 


Rightwisc, a new public 
plantations company to be created 
out of a merger of five companies, 
does not intend to pay dividends 
in respect of 1978 or 1979 unless 

there are exceptional curcum, J 
stances such as a commodity pna 
boom. This decision is dectoS • 
in the massive offer doomed 
sent to shareholders. The polie • 
is designed to facilitate 
development of the group. 

Those shareholders r of Deuba 
Who want IQ retain their income 
can opt for convertible W 
stock. Shareholders in GwM 
Indonesia also have a' UjtsM * 
option to be issued wifi . 
convertible stock, but holders d •' 
Sam pang- Java and Arbour Corf . 
shares get no such option simfi ■" 
it was considered mast unlike]! 
that any dividends In respect tf • 
1978 or 1379 would have been-pah-- 
by these companies. s' 


Assets of certain subsidiaries o . 

I. D. and S- Rivtin have beei 
acquired by S. Casket (SoldiwK 
from Mr. W. G, Mackey a ' 
Whinney Murray and Ce., tht 
receiver of those companies. 

The price is £374*500 cash, j 
Significant proportion of which H 
accounted by stocks which Cash* 
would, in any event, use in tht. 
normal course of business. 

Casket has agreed-to buy twt 
freehold and, subject to landlords, 
consents, 26 leasehold mcnsweai 
retailing units, together will 
certain fixtures, trading stocks ant 
motor vehicles, owned or occupied 
by Sachs and Sherman, the Tees 
aide Army Stores and Bunnoj 

The units being acquired art 
principally located in Teessidc ant 
North-East, and had a tumovei 
in the 11 months to April 30, 1977 
of some £l.lm. 

Caskets sees this purchase as a 
logical and geographically appro- • 
priate extension of their retailing 
division which' will - comprise . 
over 70 shops with an annual turn¬ 
over approaching £4m. 

StanChart’s financing plans 

Standard Chartered Bank has 
given the first public indication of 
how it plans to finance its ambi¬ 
tious 8372m hid for Union Ban¬ 
corp, which was announced early 
last month. 

Yesterday, it unveiled a $lMm 
issue of floating rate notes due 
August 1990. According to the 
company, the proceeds will be 
made available either for use in 
the international business of the 
bank or, as part of the banks 
general funds, to meet part of the 
consideration for the acquisition 
of Union Bancorp. 

In the latter event, the balance 
of the consideration (5272m) for 
this acquisition will be funded as 
to approximately half from thp 
bank's own resources i£70ra» and 
as to the remaining half by other 
means to be determined in the 
light of the progress of the 

Until recently. Standard 
Chartered’s balance sheet has con¬ 
tained virtually no debu However, 
last year it embarked on a pro¬ 
gramme of tapping the interna¬ 
tional capital markets. In May 
1977 it raised a $50m floating rate 
note issue and in December it 
raised DM125m. This latest issue 
will take its loan capital up to 
some £113m, against a net worth 
of £3S0m and a market capitalisa¬ 
tion of £273m. 


The cash offer by A- Mendez 
and Co. (UK; for the capital of 
Rajawella Produce Holdings, has 
been declared unconditional as to 

acceptance, and will remain open. 

Acceptances in respect of 
1S4.2S3 shares (15.29 per cent) 
have been received which, 
together with the 435,330 shares 
(36J3 per cent) held by AMC and 
Its - subsidiaries before the offer 
period, total 619,613 shares (51.42 
per cent). 

A circular will be sent within 
21 days informing shareholders 
whether the offer has become 
unconditional in all respects. 


THE AGREED bid from Dana 
Engineering for Turner Manufac¬ 
turing has been accepted in 
respect of 96 per cent of the 

Both the ordinary offer, for the 
ordinary shares and the 5 per 
cent non-cumulative second 
preference shares and the prefer¬ 
ence offer, for the cumulative' 
preference shares, have been 
declared -unconditional - and 
remain open. 


Charterhouse Japhet, the 
financial adviser to Mooloya- 
Jnvestments, has written to share¬ 
holders of Cnstomagie Manufac¬ 
turing encouraging them to 
accept Mooloya’s controversial 
bid now that it has been declared 
unconditional. . 

Mr. P. P. Ralph, who has signed 
the letter, suggests that there is 
“ uncertainty of dividends on a 
shareholding in a subsidiary com- 

g any” which is-what Cnstomagie 
as effectively now become. He 
contrasts this with a 12 per cent 
income yield they can obtain by 
accepting the convertible un¬ 
secured loan stock of Mooloya. 

Among the other reasons he 
puts forward, he writes that 
acceptance will “help bring to 
an' end the uncertainty under 
which ' Customagic and its 
employees have had to operate 
during recent weeks.” 

Customable shares are above 
the level of Mooloya’s effer on 
the basis of the prices shown in 
the letter. 


Redtand Roof Tiles of Reigate. 
Surrey, is conducting negotiations 
with the E. Alee Cohn an Group to 
purchase Essex Group Industries 
for between £200.000 and £300,800. 

. E.G.L currently manufactures* „ 
concrete roof-tiles from one wtHtsR J 
at Swaffam In Norfolk. The par-Uj 
cahse by RedJand will add to its 
product range the nationally 
tributed single pantile and the 
locally distributed "Duoxo" double 
Roman tile. 


On July 17. Hill Samuel bought 
for a discretionary Investment 
client 5,000 T. Tilling at 120p and 
10,000 at 120 >p. 

Hedderiticg Stirling Grumbar as 
brokers to- Newman Industries . 
bought on behalf of Newman and 
Son (Biddings) 30J80Q0 Wood ordi¬ 
nary shares at 55p son-assented . 
for cash. 

Baker Perkins in U.S. deal 

Baker Perkins Holdings, manu¬ 
facturer of machinery for the 
food and chemical industries, has 
agreed to buy Werner Lchara of 
Michigan in the U.S. for $4.35m. 

In its financial year ended June 
30, 1977 Werner made pre-tax 
profits of £959,000 on sales of 
39.4m. Baker Perkins plans to 
develop Werner’s exports through 
its world-wide marketing network. 

The report and accounts of 
Baker Perkins were also issued 
yesterday. In a statement, Mr. 
J. F. Braithwaite. the managing 
director, says he believes the 
return on capital employed, after 
providing for inflation, can and 
should be improved. 

He says that over the past two 
years the group has demonstrated 
that it is capable of earning a 
return which is sufficient to fond 
the costs of inflation and to 
service its capital. 

The return on average capital 
employed of profit before interest 
and tax was 22.8 per cent in 
1977-78. compared with 2L3 per 
cent in the previous year and 14.7 
per cent in lB<o-76. 

During the year, group spend¬ 
ing on research and development 
rase from £1.75m to £2J2m and 
the group plans to spend £3rn in 
the current year. Mr. Braithwaite 

Capital expenditure increased 
to £5.66m compared with the pre¬ 
vious year's £3.57m and £l.63m in 
1075-76 and he adds that expendi¬ 
ture this year is likely to be 
similar in amount to lOu-78. 

Mr. Braithwaite emphasises the 
strength of the continuing 
businesses which in 1977-7S 
achieved a sales increase of about 
12 per cent, if adjustments are 
made to reflect the disposal of 
the group’s laundry machinery 
business, the run down of air 
conditioning contracting in 
Australia and the strengthening 
of sterling. 

Profits on sales improved from 
S.S per cent to 0.7 per cent as a 
result of eliminating some un¬ 
profitable business activities, he 
says. Pre-tax profits for the year 
to March 31. 1B7S were ahead at 
£8.93m <£7.Q2m). on sales of 
£S6.5m (£S 1.42m;—as reported 

June 23. 

On a CCA basis, 1977.7S taxable 
profit is reduced to £6.33 m 
(£4J57m), after adjustments of 
11 -am ill.lm) on depreciation. 
£1.45m (£2.7ra) on cost of sales, 
offset by gearing of £96.000 

Though the results for the 
current half-year are unlikely to 
exceed those for the same period 
nf last year, the group should 
make further progress in the full 

year, Mr. I. H. G. Gilbert, the 
chairman, confirms in his annual 


Scottish newspaper group, F. 
Johnston of Falkirk, has made a 
takeover bid for the Derbyshire 
Times, the weekly based kt 
Chesterfield. Shareholders have 
been recommended to accept. 



Rose ha ugh Company, the small 
investment vehicle in which tax 
specialist Mr. Godfrey Bradman 
has nearly 50 per cent, h« been 
transformed into a cash and asset- 
rich property holding company. 

The shares were re-listed yester¬ 
day following a circular to share¬ 
holders outlining some spectacular 
property dealing Involving over 
£30m worth of properties. 

Rosebaugh paid £850 for a 28.3 
per cent stake in a company called 
Sunbourne a subsidiary of which 
pid £lL25m for Maple House in 
Tottenham Court Road. Renamed 
International House it has now 
been sold to British Steel Cor¬ 
poration's pension fund for £15m, 
thereby achieving, as the circular 
says, -a substantial profit" 

Rosebaugh also paid £70,000 for 
a 20 per cent interest in another 
company Tannergate. This paid 

£15.5m for a portfolio of fiats, 
shops and offices from Legal and 
General Assurance last year. 

Tannergate has now sold suffi¬ 
cient of this portfolio to reduce its 
borrowings to-£3m and to create 
- net tangible assets of £L5m 
(£300,000 of which can be attri- 
.buied to Rosebaugh). 

Furthermore, the remaining 
portfolio—largely consisting of 
shops and offices—has just been 
revalued at-£I3.7ta, a surplus over 
book value of £8m. 

Shareholders must now be look¬ 
ing forward eagerly to the 
accounts for the year to June 30 
particularly .since the directors 
say that Tannergate will be 
treated as an associate so that 
Rosebaugh cn shre in the equity. 


Birmingham and Midland 
Counties Trust picked up a fur¬ 
ther 0.5 per cent of the snares in 
Weston-Evans yesterday, bringing 
its holding to 42.51 per cent. 
Birmingham is bidding 124 }p a 
share for Weston-Evans, which 
the latter’s Board think is inade¬ 
quate and unacceptable on the 
basis of either assets or earnings. 

The offer documents are un¬ 
likely to be sent to shareholder? 
before the end of the' month 
when Mr. Graham Ferguson 
Lacey, the owner of Birmingham, 
returns from holiday. . - 


Extract* from the Annual Statement V 

to Shareholders for the year ended 31st March. 7978 
by the Chairman, Mr. C. E. H. Topping, F.RJ.CS. 

★ Another successful year with profit before tax being. 19% up 
on last year. 

★ Paying maximum dividend permissible which is covered 1.74 

★ The value of Company’s net assets a* .at list March, W8 was 
equivalent to 833 pence per share. 

All properties are let with the exception of flats far sale. 

★ Directors are confident the Company will continue to .make; 
•good progress during the current year. 

1978 . 1977 

Gross rental and other income 
Profit before taxation 

Profit available for Dividend 
Earnings per Ordinary Share 
Dividends per Ordinary Share 












118223 . 



' 4.l45p; 

The Annual Genera/ Meeting was held on fflth July. 197$.' 

Financial Times Wednesday July 19 1978 




of Murchison goes back 
into the red 


IX>UBLE disappointment comes Consolidated group's Western Hecla announced this decision 
r Holders ot the Anglo-Vaal Areas to $200 per ounce for its at the same time it is revealed 
?U p .l* an “i? on 3 [:P r{>dlldn ®' Con. production in the three months, that four New York banks have 

iidated Murchison. Firstly, The average received in the agreed to defer the payment of 

65 r ii ^tUTlony concentrates March quarter was $17L interest and principal on a $ 57 . 8 m 

ve fallen sharply in the past The impact of this higher price (£30.7mj debt until September 30 
tarter after the improvement of on revenue of a marginal mine is from the end of this month. It 

c previous three months with dramatically Illustrated by is hoped that the loan can be 

c result that the mine h a* gone Western Areas which reports a restructured in the nest few 
ck to making losses. more than doubled net profit weeks. 

Secondly, the latest quarterly of R7 - 3in against R3.4m in the Hecla has invested some SlOOm 
port makes no mention of any 0Barter. in Lakesbore. but the mine had 

Id find having been made be- Randfontein, which announces to close because of - low prices, 
nth the " primarily antimonv a 3a -® P* r 0601 rise in ? et ?™ 5ls ! thus putting a strain on the com- 
ebody. Rumours to this effect adds that Production of gold and pany’s financial resources, 
ucbed off a sharp recovery in “ ra " ium , wiU start at its new The result of this strain has 
e shares to 290p at the end of Cooke P 1 ®" 1 . ,n .current been a programme of reuench- 

st nionth' thw were Minvwl quarter. This capacity increase meot which involves The reduc- 
rday ^ P ^ will allow the new supply of ore tion of exploration activity and 

* r,Ar h„.. nn .. .. . _ from the Cooke No. 2 shaft and the closing of company offices in 

n »n»?' pa i‘n“c ^^dend of Randfontein section to be treated Denver, Reno and Vancouver. The 
t \ • , «I cblson f° r both gold and uranium. number of personnel at Lakeshore 

. ■‘dared a total of only 30 cents Because this ore contains less has been reduced from 140 to 16. 
l, \" r w*7 and has passed ns in- gold than that being achieved 

nm tor the current year. On from Cooke No. 1 shaft there will ptiACDUATC ri\in 
. e current showing the chances be a substantial fall in the JrtlUarllAlt JrjJNil 

a final appear to be slim. average gold grade of ore milled »»r rDrrrr 

But shipments can vary from in the current quarter, bnt this Iiv uKLttCi 

larler to quarter and there is should be compensated for by Q 00d oualitv nhocnhate 

e Ct?rrenf nenod m F^S 0 ^ n mcreaseA “ifE ,w deposit totSlift 11m tons have 
e ne? smckSile oT S? ^ been discovered In the Drymon 

ifrt Sr coniSntrates and RMO nwo rmo area of western Greece. 65 km 

‘ n ,r,i h J* cobbed Raadfootun . lsjjr 13.537 14.873 north east of Preveza. reports OUT 

e will be a revenue booster western Areas ... 7.314 3.432 7.238 Athens correspondent 

An announcement from Mr. 
uimniv rvTCMDC Miltiades EverL the Minister of 
JHIJjJjDAl LAltiM/' Industry and Energy, said that 
niTUCD rnn samples were being tested and 

L/FrEtt FUlI that if the mineral is suitable, the 

INCPITI ATlrtN deposits are expected to meet 

LiariftA 11UI1 Greek phosphate requirements for 

Inspiration Holdings, which is the next seven years. 

-iMHIUlWUtw'l ... 

revenue booster Western Areas 
hen the market eventually picks 

The group’s Prieska copper- 
nc mine reports a lower June 
-after profit despite increased 
lies. Rising costs and low metal 
rrtvs have hit results for the 

ill year lo June 30 net profits _ 

nounting to only R 6 tn (£3.7m) owned by the two Anglo American 

.... -- Antor%Sitl«ntJc 

™ pa !K S r o]t. S °Hu h d.o" r Sy Sg'Sd MINING BRIEFS 

M 8s ss-g issj jtjusi 

n™ ,s quarters gold revenue copper it does not already own 
°L2? ^"'arrange- wi ^ e extended to July SL 
L r.lo.i-. - for *S[ d Hudbay and Minorco held 40 

-tf r L ca -- T !? e per cent of the Inspiration stock 
u lf - nn^r h hL. d ? ubled ? n lhe . before they announced .their 
5i n2Sh f«; S i he tot & intention in June of offering $33 

5 P rtv.SSdl h, to yM Mn"%S {“Ser “ 5l,are f ° r V U ' e 

"planned 9 ' production for the J° c HSl! 

\ «}>' DIS l? er to , n compared inspiration Copper equity as 

ith the pa>*t year s output of Anaconda, the Atlantic Richfield 
. Jm a ^aw ) 1 J srams per CO pper'unit'. owns 20 per cent and 

il Wffl n ° l teDder * 

rtwir^ RJ4 ' 7m s Pem in the inspiration Copper is one of the 
'nil! I»i.-ta- .jiurit-rlv net prefl,,. nr O’dest U.S. c °PP e /Eronpsjmd has 
w*i-s. r.f ii» - cruun'i minus are compared holdings in Arizona. It also pro- 

P. Harris 
to £0.7m 

Second half recovery 
at Birmingham Mint 


at £0.7m 
as forecast 

AFTER A downturn at midway _ COMPARED WITH the April 

pre-tax profits of Philip Harris A STRONG recovery in the second age market continued to be aiffi- to £L14m. after adjustments for estimate of £730,000, Peter 

(Holdings) recovered in the half by the wrnungham Mint, fol- cult throughout the year, but the depreciation of £86,000, cost of Brotherhood, the machinery and 

second six months to finish ahead lowing a factory fire, has en- collector marketing activities pros- sales £80,000 and gearing on net power plant group, has turned 

from <‘685,254 to £702 234 for the abled P ™® 15 t0 advance pered during the Silver Jubilee monetary assets £197,000. in a pre-tax profit of £763.585 for 

year to March 31, 1978. Turnover fr0ra ***** *** directors say. 

was better at £9.23m against h The‘-group's -various presswork 

£S.44rn. half profits were down £182,000 products w;re all subject to the 

When announcing first-half pro- at J 44 ' 000 ’ ^ J prevailing flat levels of demand in 

fits down from £330509 to The current year has started UK markets, but these activities 

£276,169. the directors said that well with a record Intake of new’ are now being operated at a rea- 

wtth the volume of orders in hand, coinage orders, the directors say. sonable level of profit, 

the second six months was ex- Trading profits in the first quarter The security services subsidiary 
pected to show a significant lm- were substantially higher than in has more than doubled its sales 
proveraem in profitability previous years and almost all m the couree of the last 12 

Affpr tav 'nf £»74 sso rpswiriv* P ® 113 of-tfi* - STOup have partici- months and has established a sig- 

fidlSSr P ated ’ nifica ^ ,t ' P res *»™ « ** wsh- 

S^ at 1 Wp^( 10 p) per Mp ^ isca ^S market, 

share. A final dividend of 2.976p expected f°r the first half with 
steps up the total payment from mdicab°ns that the trend will 
S.867p to 4i76p net. continue through the second six 

The group makes and distrl- ner' *>50 share for 

butes educational scientific equip- . aslBSr^l rise 

S■,, P t 5 arn,aeeUUca, and of 89 ,tiie previous 

products - year. The final dividend Is 3J6p 

making a total of A 86 p-compared 
with -4.35p. 

tops £0.9m 

the year ended March 31, 197S- 
which shows a reduction of 
£624,4S4 on 1976-77. 

At the Interim stage (when 
profits of £320,000 against 
£490,000 were shown) the direc¬ 
tors pointed out that turnover 
was much influenced by delivery 
dates of individual contracts and 
did not reflect the level of activity 
in the factory. Substantial 
. improvement in order intake con- 
OI tlnued during rhe period and 

Midway rise 
by Dewhurst 
& Partner 

1977-78 1978-77 

Tnnww .—- 

Trading pro®: ----- 

T-ww on man! stock* 

profit before tax. 

Tax - 

Wet profit -- 

Supporting the forecast for a . 

marked improvement in profit- SfvtdmS* 

ability during the current year, Reamed -- 

Dewhurst and Partner, electric Pro®.-, t 
control equipment maker. Reinstatement 












WITH TAXABLE earnings 

£495.356, against £361,194. coming would be reflected in deliveries 
in the second half. Western Board in 1978-79. 

Mills achieved sharp growth in Providing for tax of £314.326 
profit from £661,194 to a record (£477.3801 and an extraordinary 

£918,356 for the year *o March item lajrt t,rao of ■ £isl » y50 . *be net 
31 1978 mareo profit emerges at £449.039 against 

In January the directors had 'The 1 final dividend is the Fore- 
said that sales and profit cast 4.5375p net, taking the total 
continued to show increase and up from a.TTap to 6.3525p. 
considerable improvement was 
HUD TURNOVER IN the first three expected at full time. 

months of the current year at Turnover for the 12 months 
Cattle's (Holdings) in excess of reached £3.02m (£2.5mt. After HARVEY 

well ahead 




365 SO per cent up on last year, is ^ of £451^67 (£332,1751 earnings 

5 fiS i s »p -?»!■ * 

+ 12 directors are extremely optimistic S -«P 

Bntterfield-Harrey subsidiary. 
A net final dividend of Habridgc Engineering (St. Neolsl 
has changed its name to Harvey- 

of production 

S for the future, says Mr. Roy 2-5p lifts the total to 3.7p (3.3p>. SfflSSlrSnd «ii» „Lr“-SmS. 
6 ? Waudby. the chairman, in his Profit includes a surplus on the ?“ b n i,„ ra ™v 

annual statement. sale of Investments of £69.864 taw and market all the groups 

on Costs of borrowing moved in f£96J72) and the contribution products for the mechanical 

_ _ __ __ _ . _ Costs of borrowing moved in (£96^72) and the contribution products for the 

expanded taxable earnings from was coB.-leted in April following the company's favour last year from Turner and Cn. (Cardiff) ***?„ ^f K m '. . c 

£72 530 to £127.600 in the half year the underground fire which dis- compared w'ith the historically up to the date of Its sale, for .A” tne; nennn„ product s prt- 

to April 2. 3978. For the whole rupted the group's main factory high levels of the previous year. £23,000, to Severnside. a subsidiary by . - Dr ,j. c 

of 1976-77 profit was £167,000, for eleven months of the financial but present trends indicate that of Ashton Paper Mills, in Engineering (St. Xenrst in adrii- 

corapared with a high of £215,000 year. the average cost of borrowed September. After an extra- tion to the plumbing equipment 

two years earlier. A settlement has been'reached funds will be higher this year, ordinary credit of £20,384 this from Harvey Fabrications, will 

First-half sales were better at with the Insurers, with the result he adds. time, relating to the net gain on become the responsibility or the. 

£151m (£lJ>m) and after tax of that the fire losses arc not de- As reported on June 27. pre-tax this disposal, available profit came new company. 

£66,350 (£37,720) earnings per lOp ducted from the trading profit as profits rose from a restated out at £486,773 <£339.019), of Manufacturing will continue at 

share reached 0R5p (0.4Sp). The was the ease in ihrs half-year £1.22m to £1.5m for the year ended which £415,030 (£275,032) was both existing plants in Telford 

net dividend, based on tax at 34 announcement. The amount borne March 31. 1978, on Turnover of retained. and Greenwich; the company's 

per cent, is lifted to 0275p (0.25p) by the group is shown in the £34.4Sm against £28.9m. A one-for- The ultimate holding company administrative and marketing 
but will be increased If tax rate accounts-as an extraordinary Item five scrip is also proposed of the group, which makes mill functions will be co-ordinared 

is lowered. Last time the final of £57,000- Using the Hyde guidelines, and fibre boards and board r rom a new head office in centra! 

was 0.575p. Trading conditions in the coin- historical pre-tax profit is reduced components is Legov (Jersey). London. 

Uiv* foilou'lriK tablL-. 

duces modest amounts of gold. 
Dec. silver and selenium, 



Lobs In the face of mounting-finan- 
Tho non-recurring payment re- rial difficulties. Hecla Mining, the 
cued by (he gold mines in the U.S. group, will sell its share of 
MSI 411.1 nor as a result of the new the Lakeshore copper mine in 
.lies arrangement* has had the Arizona before the end of the 
1 fee. "T rui.sing the average price year. The mine is a joint venture 
■•«•<. i\u! by the Johannesburg with an El Paso Company unit 

.in, i>.-,.-iif,.nr>in 

■Hi' ?Inr*:tuson 
TI--J 4 


Jane March 
air. air. 
RUUM Rllflfl 

1? sob n .™ 
•'7i in 
•9W 154 

1.053 1.7S0 

1.352 BUI 

* l.' 1 --: r« 'Viw of Siaiu aid. 


Substantially Improved Results 

In his statement to shareholders Mr. W. Gibson 
Bitjcjart, the Chairman, said that for the year ended 
1st Apr ill 978 turnover increased byl 6% to 
ii 2.341,000 and pre-tax profits were up by 23% to 
£765,000 compared with £625,000. It was a 
considerable achievement and indicated that given b 
more buoyantdemand substantially increased profits 
could be earned. 

A total dividend of0.87845p per share was 
recommended, an increase of 10% on the previous year. 
It was also proposed to make a one-for-one 
r.T-nt.ilisation issue and to consolidate alt the 5p 
ordinary shares into 10p ordinary shares, on the basis of 
one new share for every two previously held. 

Commenting on prospects, the Chairman said: 

Whetnray Watson (CM) Ltd. should show 
increased profitability in the coming year r an 
increased contribution is expected from Wheway 
Watson (ME) Ltd. and Felco Hoists Ltd. should 
have another good year. 

"All in all I believe there are good grounds for 
viewing the prospects for the current year 
with confidence/' 









Wilson Bros., Limited 


‘‘Record turnover and profits and a greatly improved 
balance sheet position. *’ E. S. Birk (Chairman) 

Salient points from the accounts for the year ruled 
31st March. 1978. 

Q Turnover up 21.85% to £12.512m 
£ Pre-Tax profit up 37*1% to £1.086oi 
% Exports up 25.53% to £960,865 
® Earnings per Share - 6.19p 
• Dividend - 1.40p per share - covered 4.41 
times by earnings 

0 Net asset value per share 55.07p 




twee .*!* 

»m, MMfe. VBtur 


Building business with a future 


Each year for the last six years, 
Sperry has reported record-high turn¬ 
over and income, with turnover up 100 
per cent and income up 236 per cent in 
that period. And though world econo¬ 
mies are not looking particularly robust 
at the moment^ we are confident we . 
will meet our objectives for increased, 
turnover and profitability in the 1979 
financial year. 

Looking further ahead, we see - 
substantial growth in all our major 
operations with the computer and farm 
equipment segments having the 
potential to double profits over the next 
five years. 

Our confidence is based on our 
ability to bring technology, marketing 
and other skills to meet the particular 
needs of our customers. For example, in 
the computer area alone, we will be 
investing a billion dollars in research 
and development and three billion 
dollars in marketing support over the : 
next five years, to ensure solid and 
continued growth. 


Turnover for the financial year ended' 
31st March 1978 was $3.65 billion.That is.. 
an increase of almost 12 per cent over the 
1977 financial year Our worldwide . . 

growth is emphasized by the fact that 
$1.52 billion came from outside the 
United States - a compound annual rate 
of 13 per cent since 1973. 

Our earnings were also up on 1977. 
Thirteen per cent in fact, meaning a net 
income of over $176 million.This,in turn, 
has been translated into improved divi¬ 
dends. Dividends were increased 20 cents 
per share in the 1978 financial year; to a 
total of $1.12 per share. In the first quarter 
of the 1979 financial year; the quarterly 
dividend was increased 18 per cent, to ■ - 
33 cents per share, and is now 100 pet cent 
higher than five years ago. 


• lin millions ofaollanf 
- CD Met Sales of Products 

1974 • 

1975 1*7* 1 ft 7J 

Years ending 3lit March. 


fin millions of doHars) 

□ Income before Taxes on Income 
HI Net Income 

- 350 

- 300 

- 250 

- 200 

- 150 

— 100 

- 50 


1975 1976 1977 

Years ending 31st March. 


Here is a brief summary of our major 


Turnover in our computer operations 
• increased 18 per cent to a record $L7 
billion.This has been accompanied by a - 
sharp rise in profits and an order backlog 
of $L3 billion, up 18 per cent Several new 
models introduced to help cope with the 
growth in demand for both large and 
small'scale systems. Entered the 
fast-growing mini-computer market and 
expanded the line of small business . 


Growth exceeded that of the farm 
“ equipmentindustry, with turnover up 13 
per cent to $752 million. Continued to 


First year of five-year plan on target to 
double turnover in the fluid power 
market.Turnover $372 million in the 1978 
financial yeai;an increase of 15 percent 
Significant and successful products intro¬ 
duced during the year, and improved 
response to customers achieved through 
increased investment and new marketing 
and distribution organisations in Europe 
and the United States. 


The most successful vear ever in the 


navigation, guidance, and control market 
Turnover increased 14 per cent to over 
$425 million. Significant progress in new 
and expanded business areas, including 
defence systems, simulators, shipboard 
equipment and the revolutionary laser 


Surge of new orders for flight systems 
on commercial airlines, representing 39 
per cent of total sales. Avionics Division 
won flight control award for each new 
business jetprogramme initiated Leader 
in the instrument flight rule helicopter 


Introduced three new high-perform¬ 
ance shavers. Restructured organisation 
worldwide to solve operations problems 
and concentrate on promising opportun¬ 
ities for the new products. 

For a morie detailed analysis of Sperry 
Rand Corporation and the figures we have 
presented here, please clip the coupon. 

We will send you the latest Annud 
Report, which gives you the whole story. 


increase worldwide share of the combine 
The order backlog at 31st March 1978 market-through new product intro- 
was a year-end record $2.4 billion, arise of ductiorts and extetisioris of existing line. 

. . 1 “ -r-v > « -i* i • 

16 per cent on the previous yean 

Looking at performance in Europe 
in particular turnover was up 11 per cent 
and assets rose 12 per cent 

Despite continued weak demand in 
Europe for all types of agricultural equip¬ 
ment, sales increasing as financial year 

SpenyRand Limited,78 Portsmouth Road, Cobham, 
Surrey-KTll 1JZ. 

• Please send me the Annual Report for Sperry Rind 
Corporation for year ending March31st, 1978. 

Name________ — 

Position__ . 


• Address__ 



Making machines do more, 
so man can do more. 

, -.. .W. N, -^r 


.■ " ‘E’inandal Times Wednesday S 

.. • . • ‘ : a-s.M 



Market boom lifts broking profits 


NEW YORK. July 18 

THE CRUCIAL importance to 
the U.S. securities industry of 
the dramatic stock market 
surge which began in mid-April 
is emphasised by profit increases 
of up to 15$ per cent which are 
being reported by the publicly 
quoted companies. 

During the past quarter, 
trading volume on the New 
York Slock Exchange has 
averaged 33.5m shares a day 
compared to a modest 2Q.6m 
daily average a year ago. The 
impact on commission revenues 
has been spectacular and Merrill 
Lynch and Co, the largest 

brokerage house in the U.S., 
reported today that its commis¬ 
sion income in the quarter 
ended June 30 had leaped bv 
62 per cent 

The trading rally has been a 
badly needed lifeline for many 
securities companies following 
the 1977 financial year which 
saw profits slump by more than 
50 per cent This trend con¬ 
tinued in the first quarter of the 
current year and question marks 

were place dagainst. the ability 
of a number of smaller non- 
public companies to continue 

Compared to a year ago, 

Merrill Lynch's net profits in 
the recent quarter rose 80 per 
cent to 329.6m on revenues 
which were 43.1 per cent higher 
at 8403.1m. Earnings per share 
rose from 47 cents to 83 cents. 

For the half year, the 
brokerage giant turned in a net 
profit of $29.6111, 19.6 per cent 
higher than last year’s $24.9m 
on revenues which were 31.7 per 
cent up at S523f>m. 

MerriJJ Lynch's chairman. Mr. 
Donald Regan and president, Mr. 
Roger E. J3lrk. acknowledged to¬ 
day the importance of the 
*' unprecedented " spring surge 

in the stock market, but also 
said that the company had bene¬ 
fited from a sharp improvement 
in investment banking, options, 
commodities and equity trading. 

Similar statements were made 
yesterday by two other members 
of the securities industry's top 
ten. E. F. Hutton reported a 
rise in net profits In the last 
quarter to 5113m. Revenues in¬ 
creased 64 per cent to $I39.7m; 

Meanwhile) Paine Webber 
ended the quarter with a 127 per 
cent rise in net income from last 
year’s 52J3m to $5-2ra. Revenues 
rose by 64 per cent to $110.5m. 

Further Texas Eastern uses 

advance by ,, 

American Sea Cash 10 


By Our Financial Staff 

NEW YORK, July ig.'V . 


described by one anart". 
as a logical use. 

AMERICAN Motors Corpora¬ 
tion has pushed earnings 
ahead again In the third 
quarter of this year, although 
the company reports that tax 


IN A MERGER seen by analysts approved by the shareholders, was i 

here as an early example of a Texas Eastern, based in today , l f oe 1 . 

U?ofl CTmpany exploiting its Houston. Texas, Is primarily a heightened cash flow tQ^iverar 
flo “fromNora Sea ■ natural gas producing and trans- mto non-wasting assets, .<5 

££££ *- rwj&ss* sS£f^K!Sa.-St, 

13% increase 
for United 

Major banks ahead at halfway 

credits have continued to play iminarilv indicated last Tor fields, as well as three gas- 1 ated-industries. .- 

a significant role In the results. J fw the exchange fields off the Norfolk coast With / Olnikraft only emerged ag.' ^ J. 

Net earnings for the quarter „r „ C h Olinkraft share for production from these facilities separate corporate; identity--!^ 
have risen to 10 cents a share, “ share o£ new nqw rising fast, analysts have 1974 as a spin-off from OUq Csj’ • 

from 6 cents in the comparable p‘ stern convertible-pre- predicted an increase-in the poration, the diversified infia 

-*— —*.n-. of {er _. sto $L The terms recom- company's North Sea profits this trtaJ group. Its sales last yej r> 

mended by the Boards of both year of over 50 per cent. were $381m and net proa! 

companies have yet to be The acquisition of Winkrafft $35m.. 1 


By Our Own Correspondent 

company whose Pratt and 
Whitney jet engine division has 
just won the order for the new 
Boeing 767 widebodied jet. today 
reported a 13 per cent pain in 
earnings for the second quarter 
of the year. 

Net Income rone from S50m or 
SI.09 a share to S56.5ni or SI 22 
a share, and sales rose from 
$1.4bn to $1.5bn. 

For the first six months, net 
income increased by 14 per cent 
tn 8109.5m or $2.36 a share from 
$95.Sjn or $2.09 a share, on a 
sales increase of 9 per cent to 

At the end of the second 
quarter, the company said that 
Its order backlog was 37 per cent 
higher than a year ago at STJLbn. 

Beckman denial 

Beckman Instruments denied 
charges that it was infringing 
Buroughs’ patepts on planar gas 
discharge displays for electronic 
equipment and has asked a 
Newark federal court to declare 
the Burroughs patents invalid, 
AP-DJ from Fullerton. Beckman 
also asked the court -to dismiss 
the suit. In answering, Beckman 
said the contested patents were 
invalid because they were antici¬ 
pated or made obvious by prior 
art which existed when the 
alleged inventions were made by 

CITICORP, the second largest 
commercial bank in the U.S., 
boosted net profits by just over 
22 per cent in the second quarter 
to 3127.5m from 8104.1m, produc¬ 
ing earnings per share of 81.02 
against 83 cents after securities 

For the whole of the first half, 
there was a 21 per cent gain in 
earnings to 8233.3m. with per 
share earrings of Sl.SS (81.54). 
Both profit figures include S20m 
from the sale of Citibank's Paris 
branch building. 

Citicorp, whose main commer¬ 
cial banking unit—the largest in 
New York—was formerly called 
First National Citv Bank, said 
net loan losses of S83m were 
charged to first half earnings. 
On top of this. $50m was added 
tn the loan loss reserve, both 
figures showing little change 
from last year. 

Another of the country’s top 
ten banks, Continental Illinois, 
reports a near 12 per cent 
advance in net profits to 839.6m 
from 835.5m, with earnings per 
share in the second quarter of 
31.11 against 99 cents. 

First half earnings rose at a 
slightly faster 14 per cent rate 
to $79.7m and earnings per 
share amounted to S2J23 after 
$1.96 for the same period of 1977. 

Loan loss provisions for the 
second quarter totalled $10m; 
for the first six months, they 
were $24m. The bank’s average 
loans in the second quarter 
showed a rise of 20 per cent 
over the comparable quarter of 
last year. Domestic loans aver¬ 
aged Sll-2bn against S9.3bn and 
overseas loans 8Llbn against 
$3.4bn. Net interest income for 
the second three months was up 
12.6 per cent to $143.7m. 

Also reporting second quarter 
figures today was Security Paci¬ 
fic, 1 whose net profits rose from 
824.9m to 833.8m making earn¬ 
ings per share of $1.58 compared 
with 31.17. 

The earnings total for the first 
half was up to S63.6m from 
848.9m and the per share figure 
emerged at S2.98 (S229). The 
bank’s first half loan total rose 
to $12.9bn from giOAbn, while 
deposits climbed to S16-2bn from 
$14b n. 

The nation's largest bank, 
the California-based Bank of 
America yesterday reported a 
27 per cent earnings gain in the 
second quarter to $113.3m 
(against $93.1m). This brought 
its earnings for the first six 
months to S220-Sm, equal to 
$151 a share, against $176.1m 
or $1.21 a share—an increase of 
25 per cent. 

quarter, while total net 
S3.1m compares with 81.6m 
last time. Sales Increased from 
S3 80m to $703tn. 

The 1978 figure excludes an 
extraordinary credit of $3m 
or 10 cents a share from a tax 
loss carried forward. 

AHC, the smallest of the 
UJ5. car companies, has been 
badly hit by losses hom its 
falling sales of passenger cars, 
although there has been boom¬ 
ing demand for its Jeep 

For the nine months to June 
30, AMC has earned $&lm or 
20 cents a share, compared 
with 35.3m or IS cents pre- 

Papcrmakers show steady rise 

.1 • 


TWO major paper and' pulp The company said that Scott Paper reported 
manufacturers in the U.S. have although demand for Ilnerboard income for tfixe second quarts 
produced quarterly results show- was strong, the price, along with ahead from $17.5Gm' or t 
ing steady gains in sales and the price of pulp, remained poor. 524^m, on' sales up from $380 
earnings in the second quarter Paper manufacturing operations to $42l.6m. Earnings moved 
and first six months of the. cur- were also hindered by strikes, from 45 cents 1 a .share to 
rent fiscal year. Results from paper and re- cents. Last-year's- Income flgbr* 

sss£ mmm esm assise. 

ISTe seio^d“u^terioiSSd were strong,, and prices con- Six months net income wt* . 
with $32.6m or $So a shSein unprove on most 3447m or■ S1.XB a share coq.v:- 

1977. Sales revenues rose from grades of paper. pared with 334.43m‘or 89 ceuj,;: 1 

$591 to $694J2m. This lifted The company expects a good Extraordinary credits' brpugJ.j; : 
first half net income from $56.7m result for the full year if the i final figures for the d, - 
or $L92 a share to $79m or labour negotiations at its pulp months -period last year l:. 1 
$2.59 a share, on sales ahead and paper facilities are con- 871.51m or 31.S5 'a'share: Salt, * 
from $lJlbn to $L23bn. eluded successfully. were $318m against 3740.2m. 

Steady growth 
at Northrop 

Republic Steel upturn continues 


A CONTINUING recovery in 
sales has boosted - net earnings 
at Republic Steel in the second 
quarter, but the company presi¬ 
dent, Mr. William J. de Laucey, 
warns that the outlook depends 
heavily on the future level of 
steel imports. 

Net earnings of S1.94 a share 
have increased from S1J37 in the 
comparable quarter last year. 

Total net earnings have risen by 
41 per cent on a quarter to quar¬ 
ter basis to S31-36m. Sales 
jumped by 17 per cent to 3910^m. 

For the first half of the year. 
Republic has turned in net earn¬ 
ings of 84l.lm or 82.54 a share, 
against S16m or 99 cents. Sales 
of Sl.Tbn show qp increase from 
the $1.4bn reported for the first 
half of last year. 

The outiook for the remainder 

of the year will be greatly 
influenced by the effectiveness 
of the Government's trigger 
price system in reducing the 
level of steel imports into the 
U.S, Mr. de Lancey said. 

For the whole of 1977, 
Republic reported a fall of 38 
per cent in net earnings to 
$41m or $2.54 a share, although 
sales rose from S2.6bn to $2.9bn. 






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Second Quarter 



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25 An 


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LOS ANGELES, July 18. 
NORTHROP, the aerospace 
group, has maintained its first 
quarter impetus with earnings 
for the three mon'fis to last 
June showing a gain of 30 per 
cent at $21.5m, equal to $1.52 
a share, on sales 22.7 per cent 
higher at $453m. 

These results bring earnings 
for the half-year to S40-9m, or 
32.90 a share, also 30 per cent 
up on last year’s corresponding 
figures of $31.4m or $2.31 a 
share. Sales far the six months 
were up from $741.3m to 
$887.3m — an increase of 19 
per cent 

Net earnings for the whole 
of 1977. advanced by 82 per 
cent to a best-ever 366m on 
salrs or Sl-Gbn. 

The backlog of orders at June 
39 amounted to $L5bo com¬ 
pared with $L9bn at June 30 
last year. The company said 
the redaction Is the result of 
work performed under the 
“peace hawk” programme in 
Saudi Arabia. 


Improved half-year results from Pullmar 

CHICAGO, July 18. 

PULLMAN, the transport equip- to 820.1m from 58.9m, with earn- Pullman’s revenues in tiv,’- 
ment, engineering and construe- ings per share of $1.83 against second quarter went up fronV 
tion concern, has turned in 81 cents. 3530.2m to $82l.6m; for the firs ■ 

record earnings for the second There was also a sizeable jump six-months, they advanced troa 1 
quarter and'also looks set to in first-half profits' to $23.9m! $997in to SLlbn. 
recover from the 27-week closure from 814.6m, producing earnings .TOe-company said its orde; 
of its rail-car plants by a strike per share of $2.18 compared with backlog at June 30 showed ai- 
which ended in early April. . $1,33 in the same period of last, increase from $4.1bn to $4.6ba/‘ 
Net profits more than doubled year. - Agencies . 



Second-quarter stren 

FED bank move 

. THE Federal Reserve Board 
has proposed to allow bank 
holding companies to get into 
the cheque verification busi¬ 
ness. AP-DJ reports from 
Washington. The Board said 
Barnett Banks of Florida, a 
Jacksonville bank holding com¬ 
pany, has applied to provide 
the service. Such services are 
currently provided by some 
banks and other concerns. 



CERTAINTEED Corporation, the Texas Utilities lifted second Trane Company, which manu: ’’ 1 . 

building materials group, lifted quarter earnings from $24£m. factures air conditioning an(~ 
net profits from 813.69m to or 39 cents - a share to heating supplies, moved aheac 
SI4.49m in its second quarter $S1.9m or 40 cents a share, from $2.05 to $2.4S for-the firsi"' 
on sales' of $236.86m compared Building products group Evans half, and the insurance broken- 
with $212.72m. The average Products also did better, second Marsh and Mclennan advance^- 
share capital in issue was quarter earnings amounting to from $2.24 to $2.64. Medicines' ‘ 
$14.75m against $I4.68m. $L24 a share, against 92- cents rad enzymes .supplier Baxtu* 

Earnings per share for the previously. - Elsewhere, Nlcor’s Travenol increased from 81.0S K • 
three months to end June 30, half-year net rose from $4.09 to Sl-32 in the she months, while^ l - ; 
1978. were slightly lower .than $4^8 a share. clothing manufacturer- Mane* .• 

the comparable quarter'of 1977, .. - - Corporation was jup from $2.21:• • 

at 93 cents against 94 cents, Earnings of Hilton Hotels to $2.50. . 

because of the quarterly divi- Corporation for the first six The Goveraraeut-spbosored - ■ 
dend on the series “ D ” pre- months of the current fiscal year mortgage corporation Federal • 
f erred stock issue in December jumped from $1.33 to, $2.50 a National Mortgage Association- 
1977 and the increased number share, while the computer equip- rose .from $1.64 to. $2.05 for the■■ 
of common shares outstanding ment manufacturer Memorex first six months. 'Great'Northern r 

in 1978. 

This announcement appears as a matter of record only. 

Oxford Pendaflex Corporation 

Guaranteed by 



U.S. $65,000,000 

Seven Year Floating Rate Loan 

in connection with the acquisition of 

Dymo Industries, Inc. 

managed by 

Hambros Bank Limited 

Skandinaviska Enskilda Banken 

provided by 

Algenicne Bank Nederland N.V. 

Credit Lyonnais 

The Royal Bank of Canada 

Chemical Bank Compagnie Financiers de la Deutsche Bank AG 

Hambros Bank Limited PKbanken 

Skandinaviska Enskilda Banken Svenska Handelsbanken 

Agent Bank 

Hambros Bank Limited 

June. 1978 J 


Standard Chartered terms 


STANDARD CHARTERED last A DMIOOm bond for Chase 
night launched its expected float- Manhattan Bank, led by West¬ 
ing .rate note issue. It Is 2100m deutsebe Landesbank Girouzen- 
for 12 years (bullet) with interest trale (WestLB) is scheduled for 
payable at a margin over Libor July 24. On July 26 a DM 35m 
of a quarter of a point or 5i private placement for Unlroyal 
per -cent, whichever is the is expected from Berliner 
higher. The lead managers are Handels und Frankfurter Bank. 
European Banking Company. A Nippon Steel DMIOOm bond 
Schroder Wagg and Morgan Stan- is expected on July 28 from 
ley. Deutsche Bank. On July 31, 

The proceeds will be available Commerzbank is expected to 
if necessary to meet part of the bring out a DM75m bond for the 
payment for the U.S. bank Union European Investment Bank. 
Bancorp. An announcement yes- Closing the calendar, on 
terday said that the balance of August 2 a DM65m private place- 
the purchase price would come ment from WestLB for Mitsu- 
half from Standard Chartered’s hishl Petrochemical Company is 
own resources and half from expected, and a DM«?5m bond for 
“means to be determined in the United Department Stores Is 
light of the progress of the acqui- scheduled for August 7. 

Two dollar bonds were priced 

Corporation moved up from Nekoosa, which makes paper and *2.79 for the same paper products*-moved ahea^^- • 
period. Gould Incorporated’s frbm $1.85 to $2.20. while the^ r -! 
earnings for the six mouths paper and fabrics concern Huyck} -. 
advanced from $1.79 to $1.32 <a Corporation slipped from. (Hfa:-. 
share. The company makes ela? cents to 56 cents a share. . •' I >...i 
trical goods. - Agencies L r. ; . 


(Incorporated witty limited liability in Finland) 

UJ5.$30,000,000 Floating Rate,Capital Notes 19S3 
Notice is hereby given pursuant to tihe Terms and Conditions 
of. the above-mentioned Notes that the .Rate, of .Interest (a* 
therein defined) for the Interest Period (as therein defined) 
from 20th July, 1978 to 22nd January. 1979 is at the annual 
rate of 9i per cent The U.S. Dollar amount to which the 
holders or Coupon No. 3 will he entitled on duly, presenting 
the same for payment will be U.S^48.7604 subject to appro¬ 
priate adjustment thereto (or the making of other appropriate 
arrangements of whatever nature) which the Fiscal Agent 
may make, without further notice in the event of an extension ! 
or shortening of the above-mentioned Interest Period - 


on behalf of ~ 

' . (Agent Bank) 

19th July, 1978. 


■ r.; 


•• l\.; 


^ 'tlTTi; 

■ V-n 


late on Monday, Thorn's con¬ 
vertible and The Quebec Pro¬ 
vince issue on the New York 
market. The latter had its 
coupon set at 10 per cent on a 
99J per cent offering price. 

The terms of the Thorn Issue 
were finally set rather more 
favourably than had been indi¬ 
cated. The coupon was raised to 
7 per cent from the indicated 6{, 
while the conversion price was 
set at 367p for a premium of 4.83 
per cent The share price has 
moved from 338p to 350p at the 
close on the day the Issue was 
announced (and after the divi¬ 
dend increase had had time to 
take effect) to 350p. Yesterday 
it closed at 352p. 

The bonds yesterday traded 
at 9SI/99. but turnover was 
described as small. 

One feature or the last few 
days’ trading has been the 
strength of sterling denominated 
issues, which have moved up 
several points recently in some 

In Switzerland It has emerged 
that the World Bank plans a 
big bond issue In August The 
Genossenscahftliche Eentralbank 
issue' has been priced at 991 on 
a 44 per cent coupon and the 
Euratom issue at par on a 4j 
per cent coupon. The Swiss 
authorities have exempted the 
latter from the quota restric¬ 
tions, which suggest that they 
are flexible on the strictness 
with which these restrictions are 
being operated. 

• At its Monday meeting the 
West German Central Capital 
Market Subcommittee approved 
calendar of DM5l5m tn 

Deutsche-Mark denominated 
Eurobond issues for July, AP-DJ 
reports from Frankfurt. 

The July calendar compares 
with a DM330m calendar for the 
month ending July 12. followine 
a one-month suspension of new 
new Issues that began on May 
12. In April a calendar of 
DMSKXhn was scheduled. 

The calendar opens on Tues¬ 
day with a DM75m Issue from 
the Austrian Kontrollbank, 
through a consortium led by 
Bayerische Vereinsbank. 

This announcement compBes with the requirements of tbs Council ofTfia Stock Exchange in London. 

:Ih f 

i Bai 

Thorn International Finance B.V. 

(incorporated with limited liability in the Netherlands) 

U.S. $25,000,000 

7 per cent Convertible Guaranteed Bonds 1988 

unconditionally and irrevocably guaranteed as to payment of prindpaJ, premium and 
interest l?y, and convertible into Ordinaiy Shares of. 

Thorn Electrical Industries Limited 

(Incorporated in England under the Companies Acts. 1908to 1917) 

Issue Price 100 per cent. . 

The following have agreed to subscribe or procure subscribe*'for the Bonds; 

Hambros Bank Lhnlted 

Algetneoe Bank Nederland N.V. - Cornmeryhank AktiMig w gidkriiflft 

Credit Lyonnais Goldman Sachs International Corporation 

Swiss Bank Corporation (Overseas) Limited 

The 25,000 Bonds of $1,000 each constituting the above issue have been admitted to the Official List 
of The Stock Exchange in London. 

Particulars of the Bonds and Thorn International Finance B.V. aie available, from Extei Statistical 
Sendees Limited and may be obtained during usual business hours op to andindudmg2nU August, 197S 
from the Broker to the issue:-^- " 7r '-: . 

Rowe & Pitman, Horst-BrOwn, . 
City-Gate House, 39/45 Fmsbury Sqoare* 
London EGA U A . 






Financial Times Wednesday July 19 1978 

v Austrian steelmaker 
%ees scant prospect 
“%pf trading recovery 

DV miili miftx.. 

\ Z 11 1 


STRIA S largest industrial 
jpany, steelmaker Voest- 
»me. whose 1977 results have 
n received in the local Press 
h cries of “ catastrophe," does 
expect any trading recovery 
s year. 

ales in 197$ are expected to 
! by between five per cent 
I 10 per cent, but another 
r of massive trading losses 
dually in prospect. For 1977. 
;st emerged with a loss of 
re than Sch lbn (S68m) after 
lx month deficit that totalled 

best’s troubles are those of 
steel industry worldwide, 
l the worst problems lie in 
s ; foundries in the industrial 
{ja of Styria. Here, foundries 
st be closed down because by 
•king so mueh at a loss they 
already eating up the slim 
wees which Oesrterreichisehe 
ustrieverwairungs AG (OlAG). 

holding company of the 
ionalised industries, have set 

HVA may 
dispose of 


New powerhouse in international finance 


VIENNA, July 18. By Michael van Os 

aside for their restructure. 

Voest has an investment pro¬ 
gramme of Sch 20bn and VEW, 
Voest’s special steel subsidiary, 
of Sch 4bn up to 1BS5. The aim 
is to increase competitiveness 
abroad in finished goods and 
plant construction. Where the 
money is to come from is unclear. 
The OLAG’S main political func¬ 
tion is to place responsibility for 
the state industries at one 
remove from government. It 
“ owns" these industries and 
can only borrow the money to 
cover their losses. But by the 
autumn it will already have 
reached the limit of its statutory 
borrowing power. 

The Austrian Government has 
followed a policy of bolding 
down unemployment at almost 
any price. So far, Voest has 
avoided dismissal by not replac¬ 
ing natural wastage. But the day 
wben Voest will be forced to 
lay off employees could be 
approaching fast 

Minister meets unions in 
Babcock Spain rescue 


UN’S Minister for Industry 
r union representatives here 
lay in an attempt to win them 
r to a rescue package aimed 
saving Babcock Wilcox 
lanola. Spain's largest pro- 
■er of capital equipment. 

- • .. r. ibout 1,000 workers yesterday 
i t-Hf - i ied a peaceful demonstration 
: ii side the offices of the civil 
emor in Bilbao, in an 
•arent attempt to draw some 
•ideation from the goverti¬ 
nt on the rescue operation, 
he plan, agreed in principle 
- month, involves an injection 
Pta 5bn (S65m> and a one- 
l reduction in the company's 
ip-strong workforce. 

■fficials close to the negotia- 
is were to-day confident that 

MADRID, July 18. 

differences with the workers 
council would be bridged. Both 
government and unions concur in 
regarding yesterday’s agreement 
on tbe restructuring of the ship¬ 
building sector as a major break¬ 
through in industrial relations 
here, and that it will act as a 
precedent for the eventual solu¬ 
tion to Babcock's difficulties. 

The feeling today is that all 
the parties involved, including 
the unions, will eventually agree 
to the introduction of a system 
of rotating lay-offs rather than 
a drastic cut in the labour force 
at Babcock. At the same time the 
government will issue some form 
of guarantee of alternative em¬ 
ployment for those 1.000 workers 
who will be permanently laid off- 

HVA, the Dutch company which 
has some two-thirds of. its assets 
effectively frozen in Ethiopia, 
may be about to dispose of some, 
or possibly all, of its remaining 
trading assets in an attempt to 
overcome financial difficulties. 

The company’s extensive sugar 
operations in Ethiopia were 
nationalised some three years 
ago, and HVA has for some time 
been negotiating for financial 
assistance from the Dutch 

Sources close to the company 
said the sale of the trading 
activities, mainly commodities, 
could pave the way for a full- 
scale takeover of HVA. 

In 1977. the company’s profits 
plunged to FI ORm from Z2m, 
while sales were also lower at 
FI 591 m compared to 609m. For 
the current year the Board has 
not ruled out the possibility of 
further losses, partly as a result 
of the cost of its restructuring 

DG Bank capital rise 

A MAJOR increase in capital is 
planned for DG Bank Inter¬ 
national <the Luxembourg sub¬ 
sidiary of West Germany's DG 
Bank, reports Renter from 

The increase effectively 
doubles the Luxembourg bank’s 
capital -lifting it to LuxFr SSOzn 
comprising LuxFr 800m in 
capital and LuxFr 80m in fully 
subscribed premium. 

THE plans for cross sharehold¬ 
ing links under negotiation 
between First Boston and 
Credit Suisse White Weld 
(CSWW) could create one of 
the most powerful international 
financial groupings in the world. 
By any standards it is likely to 
be considerably more powerful 
than the previous grouping of 
Credit Suisse, CSWW and White 
Weld if it can be made to 
operate successfully. 

It is a measure of the 
potential significance of the 
grouping . that international 
bankers were divided yesterday 
on which of the potential 
partners would gain most from 
the new arrangements. For 
CSWW the essential element 
was to replace the U.S. invest¬ 
ment h ankin g arm whicb it lost 
when it failed to reach agree¬ 
ment with Merrill Lynch on who 
should run the International 
operations after the latter 
bought its stake in White Weld. 
The stake in First Boston 
won Id achieve this since First 
Boston is distinctly more 
prestigious as a U.S. investment 
bank than "White Weld. 

From Credit Suisse's point of 
view the advantages appear less 
clearcut given the potential alter¬ 
native of retaining full control 
of CSWW. Sale of the former 
White Weld shareholding in 
CSWW would leave Credit Suisse 
with rather less than one-half of 
the CSWW parent company's 
capital. However, Credit Suisse 
would still be In effect the con¬ 
trolling shareholder—as was the 
case before May. While First 
Boston can be expected to be 

represented on the CSWW Board, 
actual management responsibility 
wouid remain With Credit Suisse. 

Since the Zurich bank decided 
to take np its option to buy the 
White Weld shareholdings after 
White Weld was taken over by 
Merill Lynch, it has been con¬ 
sidering the possibility of taking 
in a new partner as a minority 
shareholder in CSWW. The move 
towards selling the 30 per cent 
stake to First Boston, rather 
than going it alone in the U.S., 
appears to be based on the feel¬ 
ing that an American partner 
could strengthen U.S. business 
and possibly also help overcome 
any legal difficulties which 
CSWW might face in America. 

Tbe statement made on Mon¬ 
day evening with regard to talks- 
with First Boston, even although 
these are still in progress, was 
issued in the light of growing 
Tumours as to the identity of a 
possible new partner. 

While tbe current negotiations 
are obviously intended by both 
sides to -succeed, there are 
apparently still some problems 
to be overcome. It is not known 
bow long the consultations will 
continue and when the promised 
“detailed communique” can be 

The Zurich branch of First 
Boston declined to comment on 
any role foreseen for the exist¬ 
ing Swiss operations of the New 
York bank within the CSWW 
link-up. First Boston has offices 
in both Zurich and Geneva. 

First Boston resolutely refused 
yesterday to discuss any of the 
terms of the emerging agree¬ 
ment with CSWW but there was 
a strong air of satisfaction at 

the investment bank’s head¬ 
quarters today. Wall Street has 
been alive with rumours for 
several weeks that a number of 
U.S. brokerage houses were 
anxious to replace White Weld 
as the European bank's 
“ window" into the U.S. The 
name most frequently mentioned 
as a suitor was Goldman Sadis. 
But according to one 
unconfirmed report CSWW pre¬ 
ferred to forge an alliance with 
a publicly quoted U.S. company, 
which First Boston is, rather 

to First Boston’s eminent list of 
investment banking clients, and 
its strong merger, acquisition 
and project finance group. Lastly 
it is believed that the two 
companies’ international activi¬ 
ties are suitably complementary, 
with First Boston's strengths in 
Latin America and Australia not 
seriously overlapping with 
CSWW activities. 

In its nine overseas offices First 
Boston employs between 45 and 
50 corporate finance specialists 
and 35 sales professionals. More 

There was some speculation on Wall Street as to feelings at 
Merrill Lynch, which is widely believed to have acquired 
White Weld because it was attracted by the link with CSWW. 
Negotiations failed to secure this relationship, and Merrill 
Lynch may now feel some chagrin at a rival gaining such a 
valuable foothold in international investment banking 

than with a partnership like 
Goldman Sachs. 

First Boston officials believe 
that when the agreement is 
completed in about two weeks 
time their company will emerge 
as the strongest international 
investment banking- firm in the 
world. In essence they argue 
that a stake in Credit Suisse will 
compensate for First Boston’s 
relative lack of strength in the 
Eurodollar and Deutsche-Mark 
markets, while in alliance the 
two companies will be a major 
force in corporate finance and 
securities placement and distri¬ 
bution. Moreover, it is pointed 
out that CSWW will have access 

than 10 per cent of the company’s 
SS6.3m revenues came from 
abroad last year. In common with 
the other major U.S. securities 
houses First Boston has put top 
priority on developing its over¬ 
seas activities, many of which 
were grouped together last year 
in a new company. First Boston 

First Boston is typical of the 
publicly owned U.S. securities 
companies in that it draws only 
a small proportion, 15 per cent, 
of its revenues from brokerage 
commissions and is much more 
heavily dependent on under¬ 
writing. bond trading and invest¬ 
ment banking. 

There was some speculation on 
Wall Street as to feelings at 
Merrill Lynch, which is widely 
believed to have acquired White 
Weld partly because it was 
attracted by the link with CSWW. 
Negotiations failed to secure this 
relationship and the European 
bank exercised its option to buy¬ 
out Merrill Lynch, which may 
now feel some chagrin at a rival 
gamin? such a valuable foothold 
in international investment 

Moreover, Merrill Lynch has 
not -been outstandingly success¬ 
ful at retaining the services of 
Wbite Weld professionals, more 
than 100 of whom have since 
moved on to other employers. 

Given that part of the deal as 
it finally emerges involves a take¬ 
over by CSWW of First Boston's 
international operations, a key 
question is the degree of co¬ 
operation which can be built up 
between CSWW sod officials of 
First Boston in New York. 

The extent to which co-opera¬ 
tion builds up between CSWW 
and First Boston international 
staff would be less important 
either to CSWW or to First 
Boston itself. Several of the top 
international staff of First 
Boston have recently left, noiably 
Mr. Minos Zombanakis whose 
resignation was announced a 
monih ago. Mr. Richard Butler, 
who headed the key Athens 
office, has since loft to join Mr. 
Zombanakis while- at the end of 
last week Mr. Michael Hamilton, 
formerly number two in the 
First Boston (Europe), also 


>60m loan for Algeria 


he Algerian Office National 
Materiel Hydraulique 
JHH) is raising $60ra for 
it years. The borrower, 
ch has provided a guarantee 
n Credit Populaire d’Alg&rie, 
pay a spread ol 15 per cent 
r Libor so long as the loan 
not been completely drawn, 
a similar spread thereafter 
t this time over three or six 
ith Libor), at the borrower's 

K loan agreement includes 
optional refinancing clause, 
y days before each of the 
three repayments, ONMH 
ask for the refinancing of 
i of them for a further two 
■s. Tlwse new facilities will 
evidenced by promissory 
■s. The banks involved in the 
could reruse to participate, 
tiie co-lead managers, and 
bank running the books, 
.runion, would help tbe bnr- 
>r on a *’ best effort " basis, 
w new facilities will carry 
same conditions on the main 

ic next loan for Sonatrach. 
about $250m, will be of par- 
lar interest as it will repre- 
Ihe first major financial 
:age for the LNG3 gas lique- 
-,on complex due to be built 
-side LNG1 and LNG2 in 

cieta Italians per i’Esercizio 
fonico is raising $3Qm for 
t years with a two year 
e period and a spread of 
r cent throughout. The loan, 
h is being arranged by 
■c Manhattan Ltd, will be 
anteed by Italy’s State tele¬ 

phone company, STET. 

The Development Bank of the 
Philippines is raising YlObn in 
a two tranche loan through a 
group of banks led by Bank of 
Tokyo. The first tranche, which 
amounts to Y8bn, carries a 
maturity of 15i years, a grace 
period of five years and a fixed 
interest rate of 7.9 per cent..-. 

The second tranche carries, a 
maturity of 15 years, a grace 
period of three years and an in¬ 
terest rate of 7.6 per cent 

The Ivory Coast is raising its 
first Yen denominated loan: 
S5bn for seven years with three 
years grace. The interest rate, 
which is fixed, is 7.9 per cent. 
Lead manager is the Bank of 

The same bank has just 
arranged a DMS7.7m five year 
loan with three and a half years 
grace for the Republic of Viet¬ 
nam. The rate of interest on this 
loan, which os undisclosed, is 
understood to be similar to that 
on other recent loans extended 
by Japanese banks to this 
borrower. As in previous trana- 
actions, there is a guarantee from 
the State Bank of Vietnam. 

The Electricity Generating 
Board of Thailand is raising 
S60m for 10 years with four 
years grace on a spread of 1 per 
cent throughout. The borrower 
is absorbing some of the' Thai 
taxes, which means that the real 
cost to the borrower is lower 
than the spread suggests. Joint 
lead managers of this loan are 
Manufacturers Hanover Trust, 
Lloyds Bank International and 
Continental Illinois. 

Sk Denb Rook^Chakinan of Britbh Gas, 
reporting on the1977/78results. 

The Mitsui Trust and 
Banking Co., Limited 

Negotiable Floating Rate U.S. Dollar 
Certificates of Deposit. 
Maturity date 19 January 1981 

[n accordance with the provisions of the Certificates 
jf Deposit notice is hereby given thatibr the 
; ix month interest period from 19 July 1978 
o 19 January 1979 the Certificates will carry an 
Interest Rate of 9Vi% per annum. 

Agent Bank 

The Chase Manhattan Bank, N.A., 


Offshore Mining Company Limited 
U.S. $100,000,000 

Guaranteed Floating Rate 
Notes due 1986 

For the six months 

19 th July, 1978 to 19 th January, 1979 

In accordance with the provisions of the Note* 
notice is hereby given that the rate of interest 
has been fixed at 9 tx per cent and that the interest 
payable on the relevant interest payment data, 18tii 
January, 1979 against Coupon No.1 will be UJS.$4&24 
: Morgan Guaranty Trust Company of New York, Loudon Agent Bank, 

Tariffs Unchanged 

Gas tariffs were last increased in April 
1977. No increases are planned before 1st April 
1979. So tariffs will have remained unchanged 
for two years by next April—a real help in 
keeping down the cost of living in 14 rrvillirm 

Share off Market Up 

Gas now supplies 4496 of all home heating 
needs and 2696 of all industrial heating needs. 

New Source of Supply 

Frigg, the first of the northern North Sea 
gas fields, represents a substantial boost to 
available supplies. , 

Conversion Complete 

The natural gas conversion programme— 
the biggest operation of its kind in’the world 
—involving 35 million appliances—was 
completed on schedule, at a total cost of over 
£1,000 million (including the cost of plant 
retired early).This has been met by the 
industry without subsidy. 

Customer Service Improves 

The number of service jobs carried out 
rose by about 1 million to 14.1 million—27 a 

minute on average, and the Gas Consumer 
Councils report fewer complaints. 

£500million Borrowings lepaid 

The industry was able to repay .some of 
the heavy borrowings that were needed to 
finance natural gas conversion. 

More than £500 milhon was repaid to the 
National Loans Fund, significantly reducing 
the public sector borrowing requirement and 
thus benefiting the nation as a whole. 

Lower borrowing reduces interest charges, 
with permanent benefits to customers. In 
1977/78 the interest burden was £47 millinn 
less than in 1976/77. 

Pre-tax Profit-£180 million 

This provides a much needed boost to the 
industry's financial reserves and will help to 
keep British Gas efficient and successful in 
the future. 

FutureInvestment Plans 

The industry's 5-year investment 
programme amounts to £1,600 million, 
covering exploration for and the development 
of new gas discoveries, extensions to the 
pipeline system, gas storage—and research and 
development in many key areas, inrlndmg 
new methods of producing gas and the more 
efficient utilization of energy. 

7 ! 


The above facts are tal^ from the British Gas CcapcffaiiGn.^ Aioaual Report and Accounts for1977/78-^vailable fromHlvlSO. 

Financial Times Wednesday July 19 1978 



China makes its presence felt 


Currencies steady 
following summit 


July 18 |nu*j 



P.B». 9 I 
t'aiuiiiaa >i 

liuil-lar [ 
B%4j>uui Fij 

Lhtlllsh Kl . 1 
u-ia.ii . 

4 I 4.13-4.24 
blgi til 20-61.45 
9 | 10.50-10.65 

5 i.e8i-4.sl4 

THE BANK OF CHINA and the arising from both sides, having or China “ undertakes the follow- the civil law ratification OF joint The foreign excnan^e ma 4*575 against FFr 4.4795 on ^ e i 4 hXM 4 t.M ;Im 6 .oo-m 6 .io 

12 other Chinese foreign seized assets totalling USS230m ing business in Hong Kong, state-private ownership in the of ^eleven- Monday. L , b 1 ™ U M JjftL'SJSu 'M'lS* 

exchange banks in Hong Kong in the 1950s, have thrown a chill Macau and overseas districts on foreign exchange sector came-in JUJo^sSmif^Btioa in Bonn. The dollar's trade-weighted Jg 

have been encouraged by Peking over home financial business behalf of individuals and units: the early- 1960s, five years after . . - reaction was that if the depreciation on Morgan Guaranty i ' flirfixs B.b&i-o.aBi 

in recent months to offer the between the two countries, they 1—Stock market transactions, the effective elimination of joint « cuts oil imports. Germany figures, was unchanged at 7.5 per Vim . Jlz ; 57 B- 5 &B 

same services as other financial have not prevented the Bank of including purchase, sale and ownership in ■ other economic domestic demand, and cent. Au«n»*h auo&ja.iB 

institutions in the Colony. China from carrying on foreign transfer of shares: sectors. j apan reduces its trade surplus sterling opened at Sl.8855- Wl "’ ri * | . * - sr “' m 

Peking's financiers have, exchange and money market 2—Collection of dividends; • Against this background, the by increasing imports, this must 1<88fi5 and touched Sl.8S80-l£000. -j—— _ 

however, quietly carried out transactions with U.S. banks. 3—Collection of principal and China-incorporated banks find it help the dollar, but that these ^fore easing to si- 8 Sl 5 -l 5 S 2 o by 

most normal banking functions Nanyang Commercial recently interest on overseas deposits; ideologically acceptable to aub- were long-term goals, having tittle m id-a rtemoon^ as j the aonar 

F.-.r ... - i-anr Tha R-mlr rtF urtPHided it flPtlviri»e in ihle 4 —SjjIo nf noprspns nrnnerties mil their nvprsnoc hrnnrhes to immediate henefiL imnrnved. Demand from New — 

-- ISJa - 4 . 20^4 iVll* • 6.42 fita 

trl. 50 -bl .40 5 &- 2 &V. |mii j 0-87 j 88 TSe.jita g.ll 2 |»r -2 i>rc dm 1—t.W J 54-74 , ** 1 4 Jfa — 

A. 3-o.SU 9.2 pi pm | 7.70 pi pm im 

► 6.HW6.4G Afi-lfi r. tint — 1 l.bP IJ»-4WwJb. _.| U 
n 6.00-I46.IB piu-IDO c. iUo .—4.M 163 cjIU 

.b_7i 4.5:8) par.2 lln-ilfa.f—0.75 |2-4 ImUla _aj| 
10.9Mb.22 A-l* lira ill*' -D.5S i-2J urn di» 

8.41-.42 IJ-Jn. pm 1.78 blj-Ma c.p ra l.ji 

r if «nj pm 
15-7. Mr-pm 
1.52 crupm 

i-.pui fl.n 

Ste-month forward doBor 2.47-3J7c » 
12-llinnth 4-80-4.70? pm. 

for at least a year. The Bank of upgraded it activities in this 4—Sale of overseas properties mil their overseas branches to immediate benefit. improved. Dl?I ? a ?,. d 0 rrnro New 

China (BOC) and one of its field by placing an Interbank and management of overseas foreign laws—something that Actions will speak louder than York helped ( push tne pouna to o 

sister banks, Nanyang Commer- deposit for the Brst time with the inheritances: some observers suggest China w<)r ds as far as tbe market is closing level oi si.z»ju-^owu, a 

oi:.l nro nnrivnilv harkine turn Rank of Amprira in Hnn* Kon" 5—Handline claims for com- would find much harder to rise or 3 a points on uiw « y. i 


cial, are currently backing two Bank of America in Hong Kong 5—Handling claims for com- would flDd much harder to 
local companies in a multi- to the tune of HKS 5m. pensation from Injury or death swallow if applied to wholly 

million dollar real estate 
development on a profit-sharing 
basis with the Hong Kong Mass 
Transit Bail way Corporation. 

Last year, the Kingcheng and 
China State banks, along with 
the Peking-controlled retailer. 
China products, acquired prime 
property in Hong Kong's 
business districts at an 
estimated value of HKSSODm, 

In another property deal, on 
July li it was reported that 
Peking's New China news agency 
had purchased a 23-storey hotel 
here for HKS 72m. 

Yet another Chinese bank, Po 
Sang, has earned a reputation for 
its dealing in the Hong Kong 

Peking's financiers have quietly carried out most normal 
banking functions for at least a year. Although China’s foreign 

exchange banks function essentially as state-owned enterprises, 
the civil law ratification of joint state-private ownership came in 
the early 1960s, five years after tbe effective elimination of 
joint ownership in other economic sectors. Against this back¬ 
ground, the China-incorporated banks find it ideologically 
acceptable to submit their overseas branches to foreign laws— 
something that China might find harder to swallow if applied 
to wholly state-owned enterprises 

its dealing in the Hong Kong In addition, Peking's invest- arising from work and traffic 
bullion market. Peking's trans- ments here include an array of accidents: 

actions in sold, handled mostly insurance companies, investment 6 —Other miscellaneous 

through the BOC’s London companies dealing in land and services. 

state-owned enterprises. 

. The overseas branches of 

China-incorporated banks are 
nost normal authorised to “engage in all 
lina’s foreign kinds of banking business per- 
^enterprises. ^ laws and regula- 

■ship came in The majority of shares in 

■ mmatlon of three of Peking’s four Hong 
ist this back- Kong-incorporated banks are 
ideologically held by residents of China, many 
reign laws— of wbom are appointees of the 
iw if applied People's Bank of China. These 
banks are technically private 
limited companies with articles 
and memoranda of association 
drawn up in accordance with 
British commercial law. 
k and traffic The portrait of a private 

„ shareholder in the China- 

miscellaneous incorporated banks is predict- 
_.. ably vague. Tbe banks’ articles 


(&**■■' UR* I ni 

♦rade-weigh ted index, as 

calculated by the Bank of 
England, eased to 62.0 from 62.1. canad ni* 
after standing at 62.1 at noon and cididei 

in early trading. 

TOKYO—The BaDk of Japan g-Maric 
intervened in a small way to [J, M 
support the dollar, buying about srwun. Kr 
$30m in late trading. Tbe U.S. French Kr 

currency dosed at Y202.17| Swedish Kr 
against the Yen. compared with 
an opening level of Y20S.50, and B r w 

V'202.97* at tbe dose on Monday. 

The announcement of the 
Japanese trade figures for June ' 
was made after tbe market closed, f»| 
but expectations of a targe surplus ^ 

contributed to erratic late trading, - 

with the dollar moving between . . 
Y201.90 and Y20230. Jol3r 




One amah 







Par-OJCc pm 




7 raiL? 7*77 








W- 7 ie pm 

2X1 SJ-ZZeptn 






OJSxilpf pm 










- 1 ! 





037XX7C dis 






vn mjp as 






14JS) -MXfii 

1X04L96C pm 

6 X 0 



U.S. cpms per Canadian $. 



with the dollar moving between' Jafy u Jrtyis 

Y201.90 and Y2JKL30. Rights Accant 

FRANKFURT—The Bundesbank siertini . tawm - iium sieriuis 

did not intervene when the dollar u.s. dollar __. H*??? H52 

was fixed at DM 2.0651, compared Canadian dollar 
concerned, and although many with DM 2.0601 on Monday, and 

L40728 Canadian dollar — 

Buko* Now 
En g la nd Guaranty 
Index tiuneu;, 

- 63JB 

-— M.T* - 7J 

Pa ™2 Amtrfan ccbiiuns ■.■■■■ J555 SSSrtin f8 chimng ... 

• find n..irrinn fpam* . "" 40JB87 40.7268 I l^lEiaD franc - 

?3m nr more per day in hard market transactions was made regulation as “an industrial neVted with” trade and finance. 5t 3 I«5iL CO i? P M r f5 s^cash kroner'"'!!!!!! Mim smvb j WnahiiiKioci agreenwm Deccn 

currencies. plain as long ago as last October, enterprise with investments made m smaller banks a number Swiss franc - mow 2 ^sn monk oi England ind^iMi. 

It IS also understood to be At that time an announcement by the state or by other public- seem to be relatively unknown o^Y20iTO “gainst thl dSSrbe! FT? 44690? comport with . . . . . 

lendm- acain^t share purchases appeared outside branches of the private jointly operated enter- Chinese residents, some of whom fore a general improvement by FFr 4 478 J on Monday. It im- 

and taking shares as collateral Peoples Bank of China fCmna’s prises, which is jointly operated ust addresses in oversea? the US. currency moved the yen proved from an early morning ___ 

against loans as a matter of central bank) which bandies by capitalists and cadres assigned Chinese settlements in either to a low point of Y203. before It level of FFr 4.4620, however, OTHER MARKETS 

routine. foreign exchange business in by the state.” Shanghai or Canlon. and closed at Y202.50. compared with touching FFr 4.4710 in mid-after-_ _ ■■■ . 

Although the lack of China- Canton. The handwritten poster Although Chinas foreign reportedly travel frequently to Y203.40 previously. noon. i £ 5 . 

U.S. diplomatic relations and the advertised that the foreign exchange banks function essen- and from their southeast Asian The dollar finished fairly close ZURICH—There was little Jl llv 18 ! ___ 01 

unresolved frozen assets issue, services department of the Bank tially as state-owoed enterprises, communities. to the previous niebt's levels reaction to the results of the __i aov i sox 794 aa 796 . 9 a!Ai.-tmi._ J 27 

Washing! an agreement December, 


plain as long ago as last October, enterprise with investments made in smaller banks, a number Japanese yen to a bea levd franc bi light tradinB closine at 
to be At that time an announcement by the state or by other public- seem to be relatively unknown of Y201TO “gainst thl dStor! be- FFr 4 4690 comp^’r^ with 

■chases appeared outside branches of the private jointly operated enter- Chinese residents, some of whom f ore a general improvement by FFr 4.4785 on Monday. It im- 

la>era1 Peoples Bank of China fCmnas pnses. which is jointly operated list addresses in oversea? the Ui! nirrpnrv mnvorf thp «pn nmvpH fmm an earlv mnmins 

---i 1 

. £ L 
Notw Bate 

to the previous night's levels reaction to the results of the vr-cmio* Pnu.. I 1.407 l.soi 794 so 796.92lAii-tn*.-j 2714-8814 

_ 1 __ ___ _.i_?__ . . . n ___iii_.u ,,_j_t»_. , ',.. e . earn no-,,, .-1 anrtn- u-i_ I Mi.M 

Growth at Japanese car makers Bundaberg 

TOKYO. July 18. 

the Swiss franc the dollar rose to 

- - Greece Drachma.... 68 S84 7D O 

AMSTERDAM—In late trading Hook Kook U»llar. 8.77-0.80 

TOYOTA .MOTOR Company . rise to more than 570.000 units 4.2 per cent to 542.000 and SCtljRCk currency touched DM2.07, and ear,y morru,ie 1 

Japan's leading car maker, ex- from 5:16.000 in the preceding exports increased 21.2 per cent closed at DM2.0670. compared MILAN—In t! 

peels to report sales for the vear six monlhs. to 666.500. “7 ° ur 0 w 2V,^?r!5*P ond * nt 10 with DM2.0695 previously. The dollar stood at I 

to June 30 of Y2.6 trillion Because of the higher * ★ * , SYDNEY. July 18. French franc showed a similar lira, compared 

(million million), equivalent to domest’c sales, the company . _ QUEENSLAND sugar producer, movement, with the dollar rising L84S.70. 

some 8l2.Sbn. This represents said that it plans to increase SHIONOLI and Co., the major Bundaberg Sugar Company 

an increase of 13.5 per cent 00 vehicle production in tbe period Japanese pharmaceutical com- suffered a 44 per cent fall in earn- . — 

the V2.29 trillion of the previous to 1.19m units from an initial P^ ni ’.. m Japan, has announced ings, from AS105m to AS5Jm 

financial year, and is slightly target of 1.16ra. This will result ‘“"U consolidated based net (U.S^b.Sm) m the year to April EXCHANGE CROSS-RATES 

hichor than an earlier forecast of in lower production costs. P / 0 ^ 1 f°r 1116 fi scaI l° wer proSt reflects tbe 

Y255 trillion. In addition, sales of luxury - Ma «b 31 was some! YWbn fall in world prices for sugar. 

Thp companv said that it cars with high added value are sales of Y13b”18bn The directors had previously 

appeared to have maintained net rising faster than sales of low- f*871.17a«). . forecast that earnings would be 

profits at the YIlfi.7.?hn (8573m) priced popular models, helping Consolidated subsidiaries in- significantly lower for the year. - 

level recorded in 1976-77. to increase profitability, accord- £ ude 0saka _ n Pharmaceutical Bundaberg’s experience is owt-ct* m-i* 

As reported last week. Toyota ing to the company. nZTtfnW'rnJrZ br0 - adly $imllar *, o lhat other lJM 

lias raised its oroduction and Exports in the first half year. To „-J n Phar : major sugar producers. Pioneer rtMldltni0tW 

sales target for the current year however, are expected to fait to 0m0ri Sugar recorded a decrease of 78 ?»»iai Freiw 

10 2.91m units from an original about 620.000 from 700.000 in Ph c h r ^„^ tl r rt a J a ilc ? 1 P r^c® nt t0 while the „ , n( |lrt 

2.86m. because of an improve- the preceding six months, mainly d ^p d on °f . 1 I^ofi^ aS / rlr ltS .^ 1 p 0 n .!2I , ■ ‘ndustry leader,-CSR. earned 8 | W i mn uw i.ov 

mentin domestic sales, which arc because of the government pndms per — s ' at A ^ Wni * fr0m lts 

expected to reach T.’Sm. auainsi policy of restricting total vehicle ! n ,!J,55vi£? 1 Y653bn sugar division, 

the 1.43m earlier foreseen. exports in fiscal 1978. ending un sales of \ Il3hn. Average sugar prices dipped 

At the same time. Nissan next March, in within the fiscal * * * 15.7 per cent to A, 1S5.41 a tonne, 

Motor, ihe second largest car 1977 level of 4.62m. CITIZEN WATCH COMPANY— iiffiiv**”' EURO-CURRENCY INTEREST RATES' 

maker in Japan, has forecast Nlsson was unable to forecast one of the leading watch menu- d n ^ f J ° a J ’i? 1 ' ™ 3 

that profits before tax and second half results because of facturers in Japan—has reported . “u na j .J- s . ,u lfl aJ j 

special item.? Tor the halT-year the uncertain foreign exchange consolidated net income for the cen ^i a S j 3 F e dtfs P l, P reuuced 

to September will be higher market outlook. year to March 31 of Y3.S6bn f) [ 0 ?o'- ar,d ’f cove r. ed by earnin ^ 

than ihc Y65.521:n for the six Vehicle pmduetion in the iS19m), on sales of Y126.40bn of - 43 8 f ents , a . ,n^LS2 mpar8d 

months to March—following Januar>'-June period nf this year -S623in). The figures are the first Wlth S6 g cents in 19f6 • 7, ^ u„i„h ..!• liu-UJ* | i.} 8 ,:- a 

declines in profile in the two rose 11^3 per cent to 1 . 20 m units released by the companv on a ' ..... a ^ e 

previous half-years. from the same period of last consolidated basis. ' |Jjl rio jrri nlon - ... ' 1 a " H • q 

Domestic sales are expected to year, while domestic sales rose Agencies '- ,l * paAtAJ |fiau 

17.71 18.24 Prance.. 
36 31 37.20 German; 
4.6650 •».6650 llalv-^ 
69.02-72 21 Unpui- 

liaiv-n___ 1680-1610 

japan_ 580-390 

MerhormiKi... 4.1G4.25 [Jy'i 

VnnMr . _ 10.18 10 BO ini ‘ 

1 currency touched DM 2.07 . and 

to 666.500. 


By Our Own Correspondent 
SYDNEY. July 18. 

PihiimI .sierlirul l'A Dollar IDenKiheMaril Japanme Yen ] Prem-h Pram- 

profits at the Y118.7Shn f8573m) priced popular models, helping 
level recorded in 1976-77. to increase profitability, accord- 

level recorded in 1976-77. to increase profitability. 
As reported last week. Toyota ing to the company. 

.Sew Ziwlanrl I 

18110.921 0-2713-U.27&6)M*fN'nand. -. 4.1G4.85 

>1.30 91.40 Jg.56-42.fi8 Norway...10.1610 30 

4.45-4.4650 2-3645-2.3655lftHinj!Bi.... 81-87 

8170 J.8B30 0.9638-0.966.—. 1,445-1.465 

0.42 6.92 3.41-5.46 hwitrerlanrt^........ 3.35-5.£0 

closed at DM2.0670. compared MILAN—-In the afternoon the 4.S 4 M 4.3600 z.8d6fi"a!307aUdIc*M r 

with DM2.0695 previously. The dollar stood at L848.80 against the ^^h.vrriaui Rmvij ll62B9-l.'e40B|oieo46-0^87S6|YutrnriartB-....1 

French franc showed a similar lira, compared with a fixing -of — _ ~ 



Rate given (nr Argentina m >r*e nit. 

Oututi Quiuie 

IGawvId Onllar| Betguin Frot 

expected to reach T.tSm. agains'i policy of restricting total vehicle nnJniL Itvi 
the 1.43m earlier foreseen. -—•- «—> — ji— on sale* of \113hn. 

c-xporr? in fiscal 1978. ending 

At the same time. Nissan next March, to within the fiscal 
Motor, ihe second largest car 1977 level of 4.62m. 



C.». Dullar j Uiiieti GiilUer - 1 Swi-« Fnnw 

3U 5 

W. Gcnuan 

Krein.-li Pram: 


iiiiaiili-...._.j 111 * liij 
1 »n«r • mi 12-12 Jp 

41 -Xj, 

5M-5i a 



9 iy 9 ‘h 

9i5-9:; ' 

t» 614 







10 I S 111 * 
13 l-j-14 Is 

Wesfarmers in CSBP move 

by james forth Sydney. July is. iL *“JH INTERNATIONAL MONEY MARKET 

WESTRALLAN FARMERS Co- been to gain control of CSBP in has already been announced that a 3 ree, ^® n ^ w ’tb a Malay coin- 

operative tWesfarmers) has order to enable the co-operative several of tbe Board will stand P* 171 /* Sbankat Hadapan Berhad, -■ • j 

nude an offer of A$17m for the to increase fertiliser rebates to down. Wesfarmers intends to *° develop -.800 acres of jungle | RI'ACClirP All BtfyBOWg i 

remainder of the capital nf its members. CSBP Is owned elect four directors, which will Ia “ d in Johore State into an oil Ui VtJol&i V VrJIl liliviJ 

Cuming Smith—seven months equally by British Petroleum give it control of the seven-man P a ' m es }?i e ; _ 

TlSf ,°n VOr S an , > nH C,f ^e, S . tr ? lia ’ ^ Umins lt wiI! a , ls ° r S J^ v!- he C °- n£u\n « S moVtiTe ioint The rat ® on Belgian four-month sharply down at 3 per cent com- easier at 4Mi per cent compared 

■. P> r cunt of the tquity in u Smith and Westrallan Farmers operative control of Smiths two- __ ntlir . J?. ,- n e bond-fund papers was unchanged pared with 4.65 per cent pre- with 4>-5 per cent. The rate for 

market raid. The prospect of a Superphosphate (WFS). a com- man representation on the CSBP . ‘, l [ n at Bi5 per cent at yesterday’s viously. one-month interbank money rose 

bid for the remaining shares was pany which has close links with Board. rm^giis casn into developing the auction and now seen^ to NEW YORK—Treasury bills from 4J-5 per cent to 5-5J per 

delayed by a court action taken Wesfarmers. WFS has agreed to _ .^i w -If *?* Malay company he a strong feeling that the were quoted at 7.11 per cent com- cent while three-month funds 

’> Smith directors, alleging sell ivs stake in CSBP to Wes- Wesfarmers is already entitled Iprovide the I3nd_ Central Bank Board will not alter pared with an average 7.113 per were also firmer at 5|-5j| per cent 

briuciu-s nf the Companies Act farm vs suhject to TPC approval, to appoint the chairman of WFS Sharikat Hadapan Berhad was the official discount and Lombard cental Monday’s auction. Twenty- against 5J-5J per cent. Six-month Gold rose to :-•»,( : .. 

in the raid. The court recently If the TPC reject? Wesfarmers' and thai person is entitled to be Siren l.SOo acres of jungle land rates (both at 5* per cent) at six-week bills were 7.49 per cent money was slightly up at Sfc-dj fruiet trading. It -j 

rejected the Smith case. application the co-operative could one of the two WFS represent- at Sedenak by the Johore govern- today’s mepting. Market projec- from 7.497 per cent while one- per cent from 6 J- 6 J per cent 186. ana was fixed-. *185.40 »n .. 1 

..., . _ . end up with an equity of only lives on the CSBP Board. This men* 19"-*- and it recently lions were reinforced when one-, year bills were unchanged at fr A NKFURY—I nterbank money , ..W l 5.?o5!2LlK V 

\tesf:irmcrs is o.Tcrine A32 40 ,Ynr>.civi>i or pcrp rhm,.t>h ite riYo« tho pn.onorn t ivn ihrpp of nonroachcd Consnlid.ited in two and three-month Treasury TiiO Der cent. __._ 51 to .$184.85 at the afternoon fixing, "or,; 

in Johore 

Thu miMinnc nnmitul rares were numed f.»r Londaa dollar certlOcaie* ol dep»M: One mwah S.IB-SJV per rent: three mr-nihs S.4S3.S5 ner cent: six months S.90-8.88 per 
" en Li^^D^^'iirodoIUr'^eposIts': iwo years M-84 d*.t cent: three years ?5-9J per cent; Tour years K-9C ner cent: Hve years B»-9I par cent. ■ Rates are n w a lnal 
L,n ShorM^a rates are call lor sierlioit. US rinllars awl Canadian dollars: iinwiaw nonce for «"ilder» and Swiss franc? Asian rates are dtsttnc rates in Sinimpora. 





Less pressure on Belgian rates Quiet 


in the raid. The court recently 
rejected the Smith case. 

Gold rose » to $184H85i;_in 

\\esfarmers is o.Terinc AS240 one-sixth of CSBP, through its gives the co-operative three of approached Consolidated to 

casn for each Smith share, which existing holding of about 50 per ihe seven CSBP directors. The develop it. 

is |*quivaiein 10 the highest price cent of the caoifal of Smith. How- other WFS representative is a Consolidated Plantations has 

’V.*!!retd- after ever, by the end of the month former general manager of W> v applied to the Kuala Lumpur .... „ . D1RIC . - : - 

at Sow ing for a recent dividend Wesfarmers is likely to be in a farmers and is on the boards .,f Stock Exchange to waive the remained the weakest member of S par cent 90-days. 8.1 per rent ™ -•--- 

pa; m.-ni bv Smith of 6 cents a position to achieve control of both WesFarmers and BP Six requirement to hold a share- the European currency “ snake.” it for 120-days. 8 1a per cent Tor per cent against 7| per cent GvMBoiuod ta-ftne , 

t , "'i °n' r con . c,,tion31 CSBP—regardless of its equity of the seven WFS directors are holders' meeting to approve the above l ^.w^re°unchan'’ed nB frora re 7 ^ 7 t r ^er --sif 4 *-mi ijiM.iB+h 

on lhi> T::rle Practices Comm is- stake Th" rsp p Rmrd at nre sent also directors of Wesfarmers oro 4 ect leve! a ? ains f the West Gcrnian lSR-days. High grade commercial c "« n cea from 7 | r»r ..sisal ire ‘sibB itfi^ 

h.; MSS rtlrcclor,- Smith. EP whil- the wremh is :.n «eculiv, ’ II >M Ihe HUE tt»l Ihc £Z SSkTri'E? to «« per ant °!r ttS «£- “'"“"fefi, 4S. 

W Si, SSTSJShim, >n ?SJSSS? pr if».d tho klse .he 5 "«« , & , ssn£ , £ 

ronrrot of VsppT n^ S,™-- and YF* av * ofthc co-operative As both WFs London Exchange had given j 15 f ormanc eUen the loo? leCelS 7.95 per renter uo-dais. One- year. 

coniroi of i..s .j and Farmers, senratives. and the seventh is an and Wesfarmers represent approval, and that to hold a 
r 1 1 ., P manufaciurer of executive of CSBP farmer interests they are un- meeting would he a formidable 

rerniijUT in weslcm Australia. The annual meeiine of Smith likelv lo disagree over the run. ru-nripmic exercise considering 

' formance when the floor level was to 7.95 per rent for tlO-days. One- y ear - _ 

a actually breached. month certificates of deposit were HONG KONG—Conditions In 

e Deposit rates for the Belgian slightly easier at 7.85 per cent the money market were fairly 


Aitemuoii Aziiw..-‘[5i 4.8B iSl-B.iB 
Il£tib.l47l | (£ 38 .144) 
Qoki Wn-..—..._| | 


Krugerrand .. StS4-kG IS5J 1£H* 

I Iixms-iwj i(Xlu3-lM> 

•New soveretsn)«.. M .- 5 b 5 A-B 74 

iX 2 S*-SJil li£av*-S04) 

money Old Soveieifpbi - SS4*-W>4 :aE4I» Mis 

change Iieto-suj 

rets. Gokl Cniite--- ’ | . 

inlenmUciniillv ! 

Kni^emnhl ... SlitB 1 fc 2 J‘|S1Mi-TSfl4 


New Soverelffo^-.— 

02 f *-i 4 > |(£aa- 2 U) 

Old SoraeiKiu.6S44-6C4 |SB4t 66 ^- 

i'£3e-S8) [(SetrJWJ 

SR) KARie._Wifli-J78 JS27W7B4 

Pio Keffic^_tiira ns ' JfilB&tl4B 

»9 Kavler.._ife 88 IM IsM-lM. 

Wesfarmers' primary aim 

ha. The annual meeting of Smith likely to disagree over the run- academic exercise considering f ranc (commercial) showed very from 7.87 per cent while two- e as >' vi,h caff money at 5J per Knwsrrand .ifiti ltB .'sissj 
has Will be held on July 26. and it nmg of CSBP. the insignificant funds involved. btlJe change nilh all period.-: the month was unchanged al 6 per cent and overnight business at tiSSSS* 


AI.-. 1 II Vii-nr.ilij s»pc 1959 

ami:v -p. I?>7 
Alisir.ill.t >»pr IWJ . 
Muiralnn M * S oio.- ”9: 
Hjriljv< Rjiik Sipv JD92 .. 
Hoh ji-t 51 pi- mu. 1 . 

■'in ti Railwn- ?jpc 19-G 
1-fi-iIn non.) I s' pr ia«.J.. 
Pi'liTn.vrk .'lor lftit 

I Cs iyi:5 . 

Kr- '.pi- i ,,, »7 .. 

Kill -,nc kc . 

I’M! li»;s . 

tr.rsYwn rli’i l‘i?9 

Spr !;im. Xu 1 .. .. 

■ •i l-ii.i-. I’jpi-r s.ik- msi 
i|jiii>'r%li-v »ijf iimj 
lh.iro ijinh-r Jp..* IW.’ .. 


riK > an.i.1.i P'Pv* IP^> : lvJI 

\i.i-*lilill:iii llio.-1-l 9i-* lWt 311 

Maswr l -.-ruusnn !>: pl* ''Jl !>%: 

Mi.'i.-lin yjp.- l«vs 10*11 

:i-.I1jp.i in:. F.n s;nc •«’ f, -iJ 
Nalional Coal Ud. Sue I'W njj 

S.iliun .,1 U'-inmsir. !UiC Sil Ml'i 
Noll. Vv<iimn-ir. Ope 'S*i 'b' ton; 
Nriviouiidlanii Jpl- WSJ nn 

N'linili- luv Hank SIpt IWS M 

Niir^.'V K.itp Kfc. S’.pc 1993 K 

xiirpip- iinj . w; 

Nnrsfc 11}dn> Slue 130— ... W! 

Ilslo Mp, IJ«.« Mi 

Con- AuiDimnK-M Spl W! nri 

Prov Ou* hiT 9ric M# **■* 



Prov. Saskaicbwn. Sjpc '?fi 



Reed Internallorul Opc UW7 



RUM 9pC I9S2 . 



Sek-ctlon Trust SJpc 1939... 



Sh.-ll IntL Pin. SJpc 19M . 



Skand. En»kiida Spc 1991 



SKK Spc |i?7 . 


Sui-dcit iti'doati S Ipc 1997 



I'mt.-d Blscnlis Spc I9S9 



Volvo Spc 13KT March . 




Australia •Ipc I9?4 . 



Bell Canada .'.pc Iiri7 .. 



Br. Culninbia »yd ripe '?.• 


Can. Pac. V >'.P0 IDSt 



Dnw Chi-ini>:.ij >pc IS« .. 



ECS TiPC 19?: . 



F.«:S SlPu . 



EEC 7ipi I9S3 . 



EEC 7Jpc 1944 . 



Enra GUUc II 31 tv 1994 



Gouvcitcn "Inc is?: 


Kocftoms Spc IIH3 


Mlclwlln e?pc Iifc?3 



Montreal Lri»an >{pc i9Si 



Sesr Hrunimrk rpr 1934 



Niir Hnin.- Prnv S?p.' 133 



N,-w 2caLind 9)p«- IW3 



Nordu Inv Bk Tin* 1S«4 




Nor* Hydro 7Ipc I9S2 ._. 
Norway 7»p? im: . 

S2 SwKr Sipc 193: 

0* S. of Scot. Hoc. Si pc 1931 
9T, Swi-den * K'dom i 7 *pc 1982 
ff-J Sw.-rilsb state Co. Tjpc ’S3 
Tc-tm-.-r Jjpc I9S4 

VoTkwaccti 7:nc 15S7 


•'Hied flh<rrrl*i lOtpc "90 
C'Ucorp lope 199.: . 

3J*. F r S 1?S3 . 

*?! BtB 92nc 19SS . 

EIS 9->d- 1 W 2 . 

Finance for Ind 9!nc ina7 
•2, Franc* for Imt lOpc is® 



CIuh- Manhattan 1993. 



Creditanstalt 1994 94uc . 



DG Bank 19S2 flpc .. 



CZB 1881 8lVf.Dc . 



Inti. Westmmstor 1984 8pc 



Lloyds 1983 RL1|6DC . 



LTCB 1933 SPC - 



Midland int. ?S W SSi6Dc 



Midland Int. FS TO 9i|t,nc 



Sat Westminster TO BS 14 PC 



OKB 1983 71PC 

103 4 


SNCF 1983 Sine. 





Source: While Weld Securities. 


American Espn-ss 4 *dc *87 

Sli . 


Ashland Spc I98S 



Babcock * Wilco* 8<pr TO 



Bratrice Foods Ifpc 1992 



Bcairleo Foods 4,pc 1332 



Rnerltjra Mpc IB 62 



Rnrden 5pc 1997 . 



Broadway Rale lire 1997 . 



same os Monday except for three- rent. Three-month rates fell a ** P er ccnl - 

month deposits which rose lo little to 8.15 per cont against MANILA—Philippine money 

6 -BA per cent from 5J-5J per cent. 8.18 per c ent market rates showed no change 

Call money In Brussels was AMSTERDAM—Call money was from the previous day's levels. 


Further exceptional help 

Bank of England Minimum houses over two days and a large market advances. On the • J •. 

Lending Rate 10 ner cent similar sum over three days. Total other hand there was a small herore finishing ^around «« 

. , assistance was .somewhat overdone number of Treasury bills expected level of bids at the U.S. 

ismee June s. 1978) and discount houses-were paying maturing outside official hands Bold auction. 

Day-to-day credit continued to between 8-84 per cent for secured and Government disbursements in P arK the 124 kuo gold bar 

be in very short supply in the call loans at the close. With today exceeded revenue transfers to the wa ® FFr26350 per kuo 

London money market yesterday being published figure day for the Exchequer. (S186.95 per ounce) m the aflW- 

and the authorities intervened on banks and a sizable surplus being . . ln . e . hank mapbet ovp - noon, comtfjred with FFdtJW 

m exceptional scale. They bought brought forward, discount houses .JL I* ^ kl ^ a CS18T.68) in ; zhe morning, 

a smsll amn „ n r n f-k;,...™ fei, find condition* a i in , R night loans opened at 10HO! per and FFr 26500 . fSlSfiS*) Monday 

1 Ido 19SS 
ixa iCdc ia« 
Rowntnt 1 ldfpc 19SS 

Total Oil 91pc 19S4 


The Rural and Industrie* Bank of Western Australia {“the 
Bank ') AS30.000.000 61 per cent. Guaranteed AS/DM Bonds 

Further to the Notice dated July 14. 19iS given m rhe 
Financial Times. Notice is hereby given that the following 
serial numbers of the Bonds have nut been drawn for 

10245 lo569 

35202 25156 

The following Bonds art* drawn for redemption: 

12045 15469 

25202 29156 

Holders of the Bonds drnw'i for redemption are referred to 
the Notice dated July 14. 197S. 

The Rural Industries Bank or Western Australia 
_By the National Westminster Bank Limited as Trustee 

DM 80N0S 

Asian Dvr. Bank 5'rc 1933 

BNDE 64 pc IW. 

iCanaja -Ope . .. 

| Den Xorsjff id. Bk. Spc HO 
1 n-uwhe Bank 41pc I9SJ ... 

yes Siof ]<ma . 

EIB ^rp.- 1990 . 

Ell Anui'ntpn j!rw 19°3 .. 
Earaiom siw 

r inl-apd atnc : 9?4 . 

Eorraiarks itp.’ !9W . ... 

M«slro «nc !9«s . 

Xorwm 3 !dc 19«9 . 

Norway 4:uc mi . 

-tones* <*or 19>3 . 

PK Bankcn 53 3 l 19«3 ... 

Pr*>v Ourb«.T Apr 1990 . 

WairaruukVI ilpc 1993 ... 

?-3ala dpc 19P.4 . 

TTundb-lm S4pc 1«S . 

7V0 Powwr Co. *1p<: 19So«n.-la Hjk 19*{ 

World tank j;pc 1P9Q 

Ctltrron »oc IASS . 

Dari 4?pC 1K7. 

Eastman Kodak J'dc 59JS 
Economic Labs. -Wpc 1337 

JU 1 Fircs'onr Spr T9SE . 

« Ford Boc 108S . 

flrn^rat KWrri<* 1937 

Giivire 4ipr I9S7 . . 

Gn'ild Spc I9S7 . . 

9fi flntf and Wrerni jpe 1938 

K| Harris Spc iWC . 

971 nonr’nvrll inc 1 M 6 .. 

urns irr stac isk __ 

9S IN A 4p C 1997... 

91’ fnebrap". tit'i- I9K. 

91* ITT V.K l%” .. 

Mi Jnsto fipi I9K . 

Korr.vsit 7’nc 1990 .. . 

m a sraall'amount of TYeasurybilis. should find conditions a lit tie jjy* 81 and FFrfifi^OO (51S6S4) Monday 

£ tarse numbers of eligible bank more comfortable. to m-ll i n r «it af S er Bff , H ‘ u •«'. w 

30 biffs and a small amount of local The market was faced with a Around noon rate? bfiefrftouched r h t'!° 

sjj authority bills. Total buying was sizeable Increase In the note iifl-12 Der cent but siron eased Esed^t DML.300 per kilo ($l 8 aW 

« tereied as large and some of these circulation and banks bringing h urine *the afternoon to 8-8 ner ®® l °P ar *d with 

s; hill* im tnr ^ n , n rfnun haiovw-oc Th.« during me auemoon to 8-0 per DMJZ2S0 (S1S5J1) oreviouxlv_ 

si bills are for Fesale to the market forward run down balances. There 10 ” 

at a fixed future date. Tbe was also a further call on the 
87 j authorities also lent an extremely Treasury long “ tap ** and the Rates -in . the table below are 
i 9 i large amount at MLR to 10 or 11 repayment of Monday's extremely nominal in some eases. 

DM12£80 .($185231) previously- 

large amount at MLR to 10 or 11 repayment of Monday's extremely nominal in some eases. 





Certificate Intertnnk 

[nica.1 [ I Aui h 

Autl».-r 1 t<r ■ n-^Mithk 

J Ra> McD-rmou *’oc ‘87 142) 


Bant of Tokjo 19« S : pc 
5FCE llj* sip,' 

ENP I9?3 Slir-nc . 

BOE Wiirm* i»j ape . 

CCF IS55 S'.pc .... 

B, ‘i Mitsnshita 4!pc 1990 . 184 

95 Mitral -‘or: 1990 .. . .. 133) 
99) J. P. Mo run 4‘oc 19S7 .. 96) 

97) Nahi^i^. 54pc 1999.. IM 

9t,i n«,-”ns lllinoLi 4‘pc 1M7 ... 114 
931 J. C. Penney 4ipc 19S7 .. 7B 

97 Revlon 4)pc 1937 . 124) 

»4> Reynold* Metals 3pc 1993... 93 

W Sspilvlk 8!p,r If?? . 109) 

Sperry Rand 4i(v IBS?. 921 

97 Sqnlbb 41PC 1997 . W 

931 Teraro line tWS .. 7HJ 

97i Toshiba «ipc 1992 _ 1331 

Ty Co spc I9sw . 77) 

Ty Co. Slpc 19?8 . 103t 

MJ Union Carbide 4!pc 18fi ... -K 

jjj Orernif^it.I — 9-12 

134) “ day* bot1ce_i — — 

98 7 etay» or — — 

19S4 / .lav notice.. 1 — lOlj-lUg 

115) Uoe month. 10^-10^ 10I 4 15,;- 

771 Two ment~. 10l 4 -10l a j lOl-j-lOLj 

129 Three momb>. 10,^10,^ j lOij lOJfl 
S4i Sis ninnrh* .... KJ.-IOjJj i lC^-lU^- 
111 Xme mmtbi>.. 1 QI 4 10 ^ [ 10j„-10is 

91 nwivir.- lOU-lOi lOta-lOJ,- 

9 H r«-o yemr- . — — 

Ids 103) i — 



9 ig -10 
10 10 U 

1014 10 
9ii 5»iB 

9*8-9 ig 
10 M 
IOI 4 -IU 

Firm nre 



t><-f.*-ir- , 





1U B 



10S 4 



10T fl 










[ Eligible 
Trearary I bnnlt- 
Ulll< 4 1 Bfih 4 

Prime R«e. 

I [ Ped Ponds — ■ ..... 

IrLiieTrado I Treasury Sills 418-wVeki 
I Treasury Hills 729-tret*> 

— r 

- 7JJS 

. 701 

. 7M 


9i 8 -9«4 ilO.t.lOlt 
9^914 1 «)„• 10 

9t 8 .93 4 

Dttuoum Raw 
OvernlBbt ..... 
Ore mooito 
Tbrw mornfas 
Six months . 

-“zr. 1 r. 1 r~” Lb 

... S.h 

—. W 

__ 4J» 


Dlscouni Ram 

DlsMwm Ram 9-5 

Ovemhihi . .. TJf 

One mamh .._... TJOtS 

Three months ___TfiS 

Six mantas - - r t.TOS 

9Si Warner Lambert 4‘pc 1997 

Warner Lambert JJpc 19S8 
Xerox Spc 1998 

rg J Local aarhonrj and finance bons^a seven days' notice, others seven days' fixed * Lmwerrterrn local authority mnnimee- months - 

1M« I™ 16 oomlnaliy three years 113-111 per cent: Tonr yean 111-121 per cent: five years 121-121 per cent. 4> Bank hill rates in table. Sl * mont hA-—• 

{ sre buy lot rale rur pnmc paper. Kuylnac rales tor 'uur mvoih bank bills 94-9''i> ner rent: liHr-nmrrfh trade mils ID) per mil. . :• 

88 | Aoonixlmaic selling rates for one-month Trv*soi-i mils 91 v per rent: nro-mouth 9>f-9| per c**nt: .and rhRr-mtmih JAPAN 

9316 per cent. Approximate aclhw rale tor one-month baflV bills per cent: and hro-montb 9J-9"» per cent; and m^nunr Ran, 

ihrrr-ninnih S"i,S»n Her cenL One-tnomh trade bilh 101 ner cent: twA.niimHi ml mr nni- and elfin HmufUMh iUjar«iu ..... ..... 

Stinrre: Kiddvr. Peabody 5e curl Lies. 

784 I three-month 9”K-9"ia per ceaL Ooe-momh trade bill* 101 per cent: two-month 191 per Ccah agd al» Utree-mortb 18)-per cent, j cau lUncomlUIwiai'i^.t 


Finance Haoso Base Rates < published by H».- Finsn<r H.iow- AB 30 10 per cepi from July I. IBTi Clearing Bank Rin_ ntoMmiSaK.--- ’ 4x35 

DeposH Bates ffor small sums at neven daps' notlwi M-7 per pent. Clearing Bank Ban Rates lor lending 10 WB ftest. I V 

Trcatury Bills: Average tender rates at discount 9.2446 per cem. 

L: J 

- vp'- w 

Computers are expensive, and for small and medium-size businesses 
the cost of outright purchase can be prohibitive. Nowadays, however, there are 
several means by which companies can obtain the desired facility—either through hiring 
or leasing, or through second-hand buying, or a mix of both. 







iy Ted Sckoeters 

ECIDING HOW to finance a 
_»w computer installation, or 
' juipmeht to work with an exist- 
g one, in the view of many 
— more difficult than 
Meeting the' right computer, 
fven that the area of choice, 
"it only of which machines to 
*e but also .of how to use them, 
widening day by day the 
jcisiou. would seem virtually 
ipnssible to arrive at with any 
?gree of conviction that the 
itcome will be the right one 
ir the company involved. 

But there are a number of 
sidelines that can be followed 
ith' some assurance that they 
JH point the decision makers 
the right direction. They are 
jplicable particularly to eom- 
_inies in the small to medium 
"” - acket who have little or no 
'ea of how to go about the 
■quisition and use of what 
’ten is—for them—a major 
ece of capital equipment 
Possibly the most important 
the questions that should be 
iked is whether the installa- 
on contemplated is likely to 
ive to be expanded quickly, or 
ctcnsively, in a year or so. A 
-^■gnificant corollary is whether 
lose responsible for the acquisi- 
on have sought to discover— 
referably from sources other 
lan the prospective supplier— 
» iJjw long it will be before the 
inferred equipment is likely 
• become obsolete. 

The next question to be asked 
!*- whether the accounts depart¬ 
'll Sent, or the accountant, has 
ki'.’gpared comparisons between 
aslng and rental costs, assum- 
g that outright purchase is 
- jected, and has sought pro- 
isals from one or more leasing 
mpanies. The accountant will 
ive taken note of the possible 
' x advantages while studying 

e above. • . ... 

It is interesting that in this 
rticularly crucial area, there 
relatively little financial 
vice to be obtained anywhere, 
le National Computing Centre 
s kept well away from the 
pic and consultants generally 

seem to take the view that their most onerous of which must be 
task ends . when they have that any overstepping of what 
guided a client to the right has been caHed “normal work- 
choice of machine and systems, ing hours” i.e. eight hours a 
The potential user is thus day over a 27-day period, in- 
LargeJy on his own with little to volves escalating costs, 
go on other than friendly advice _ . . , , . , . _ 

from people who have them- . ^®l®tively high in cost, rent- 
selves been through the mill — lng is justifiable for short-time 
and preferably with equipment u. se . because of the consequent 
of the general type and cost con- ‘^riing of financial liabilities, 
templated. . current main attraction. 

Even where a company «*an however, is the freedom it is 

afford to buy a machine out- S^ing users to take exactly 

right it is not always advisable they want in the way of 
to do so. Some of the manu- equipment from several sup- 
facturers have not been’-as pliers am * match the final 
helpful as they should to users ®l s . se . I ? faly closely to their needs, 
of the smaller machines' even ^ the same time they benefit 
when the latter depend entirely { rom what are f r®3, u ® ntl J mnch 
on these for their livelihood, as ]f \ wer charges levied by sup- 
in the case of bureau installa- P'i ers / f Penpherai equipment 
t j 0Jli who for some 10 years have 

At the same time there has »«n rompeting strongly with 

h*.pn a tpnrtpnrv in allow the ta,g mach,ne builders, and 

machine especially IBM. 

past such installations and the Two forms of leasing 
supplier does not necessarily “ m ™ n]y ?PP hed “» RaaD . c i 
have to provide major trioflifica- ax !£ or risk 

tions. even when they have been Tfae E ?' st 1S simple, 

introduced on a new mark or Under it a commitment is made 
fhp machine • t0 ,ease equipment for a 

Service costs can be increased ? r t h ??nlfnf 

*‘7“” pciod whiic .hfmaSinc 

&nd there is relflnvely little ine .*111 th#* nmnprtv Af thp 

it—with some notflble- bilitv of ret&imins it at a re- 

.ions where the Price Commis- ■“» “'^^ Tvilellly Z 
sion was led to Kn __ years are required for leasing 

Of course, outright purchase compares to show profit, on 
means, a user can nm central. processors and three, 
machine *4 hours a day. if years on peripherals'and asso- 
required and a "supplier cannot d a ted units 

apply extra charges of any kind, v ’ , _„ 

except in maintenance. Operating / risk ^ e *? es 

v generally run . for shorter 

Purpkacino periods than the first recognis- 

rUnUdMJUg ing that users might want to 

Current and predicted S"®** machines , ear !! er 
interest rates piay an important 

i ?,‘ h Z 1 S™ta d “ ^"KraaL of ie ord^r 

But after tte hank rate switch Qf 1 . 72nd of ^ totaI equipment 
back of the few ywra. 'this costs montlL ^ of 
is no easy foreeasUng area ^ 2Q ppr cent can ofte e n be 
Capital equipmenttax relief demonstrated for ^ form of 

K a pnmary ™nadera-Umi. ??_ 5 financing and users frequently 
the flexibility of amortisation, take advantage of this bv aC quii- 
and finally d>e residual valaie a correspondingly more 
the mac h d a e might have — non- powerful machine. 

Because of the support IBM 
U, T“ s *__i_. Hirp.- continues to supply for “ second 

tt^Ltiaily much user " ■"achines that company 

wetted repayments this approach ^ sometimes result 

im P Hes - in the gentle giant's virtual 

Rental from the supplier, elimination from a site, particu- 

vnhlch is .the most common lariy whea ^ ls one ron by 

method in. Britain, seems to a ^ processing manager with 
have 'been entered into by some enough expertise to select a mix 
users in. the mistaken belief of equipment from among 

that nhe 90-day removal clause currently very attractive offer- 

has a major effect on the maker, jugs, and to pursue a path of 
It would be very difficult, not to development that wonld' not 
say impossible, to. select alter- have been possible with the 
native -equipment and have it original equipment, or only, at 
programmed and ready to take far greater cost, 
over the workload when the 
machinery' from toe offending NOllDiCQ 
scarce‘is wheeled out 

Operating rented machines A case in point is the inter- 
has a Djumber of trammels, toe national advertising agency, Leo 

Burnett, in London. There, for 
a budget reduced by £5,000 
between 1975 and 1978. com¬ 
puter power has about doubled, 
roughly speaking, and the way 
has been opened for the 
development of much more 
ambitious and effective com¬ 
puting methods. 

The way this was done was to 
exchange the original rented 
IBM 370/115 with a second-user 
leased machine of the same 
type from Promodata, but one 
with almost double the storage. 
At the same time. IBM disc 
drives were replaced by slightly 
faster but considerably cheaper 
to operate units from BASF and 
the number doubled to four. 
Terminals and a controller were 
supplied by ITT Business 
Systems and at the end of the 
day the only IBM rented equip¬ 

ment left was a pair of key¬ 

With such possibilities con¬ 
stantly in mind it is hardly 
surprising that IBM's - less 
affluent rivals have shown little 
enthusiasm for second-hand 
machines in the past and have 
openly discouraged users from 
allowing external companies to 
make modifications to installed 
machines, even when the latter 
companies were perfectly quali¬ 
fied to do the work and could 
demonstrate major Improve¬ 
ments as a resuit- 

One major consideration 
affecting newcomers is that 
leasing companies will not waste 
their resources on doubtful 
machines. At the same time, any 
problem with a new installation 
remains theirs (the lessors’! till 

sorted out And lessors are 
powerful enough to speak effec¬ 
tively to the manufacturer, who 
has to listen since a large 
proportion of his business now 
comes from leasing contracts. 
The only problem is that 
separate service agreements are 
generally needed. 

Having said all that and 
underlining the fact that at least 
two competing leasing quota¬ 
tions should be obtained, it is 
still the responsibility of the 
user to determine clearly what 
is required and when. The 
cheapest.solution is not always, 
the best and too much of a 
company operation can be put 
at risk by a bad choice. Never¬ 
theless, bad choices are still 
being made all the time, as a 
glance at any professional 
publication will show. 

Pfceni€£ computes (bzasing) LCD 


3,union (E3uaQRicHfnonD.sutiBe/cuj9iflfl 

CeLOI-9401134 • fckx 926734 

Specialists in 
the Leasing of 

IBM ; 

Computer Hardware. 

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• • • •'•••••-f C----1-'*-.’";*',- 

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[ 5841 ■88NATH:6e7.v^^ 

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By die time it gets toNew\bfk 

theyll be sold out. 

The recently introduced Log Ate 2500 desktop cwnput^wcoipovaXes a dual 
v- titsc wwit ctiict jiSlv • 

- You might just do it in time-given a 
battery of telex machines or phones, some 
luck with the lines and lots of perseverance. 

No, far better to use a system specially 
designed for the job. The remarkable ITT 
6100 ADS message switching system. 

Type, in a message: the ADX both stores 
it-on magnetic disc in - a micro-computer- 
and rushes it automatically to. all points in 
your network. 

Virtually simultaneously. 

And if any one's busy, it keeps trying 
regularly till it finally gets through. 

It will even sort out your messages in 
order of urgency. 

With private lines, the ADS can transmit 

or receive across the globe in works 
almost as quickly with the public telex system. 

Banks and brokers use it, of course. 

But so do car, paper and chemical companies, 
to keep track of their scattered networks. 

Finally, recent technology has brought 
this sophisticated device within the means of 
a far wider market. 

All the same, it still doesn’t come cheap. 
But without it, United Oil and the like 
will never come cheap either. 

Sales Information Dept., Hollingbury, 
Brighton BN1 SAN. 0273-507111- 

ITT Business Systems XTT 



financial-jamas Wednesday Jaly Jg 


Still room for the independents 

IN AN industry so overwhelm- 
iivzly ilominated by one com¬ 
pany as The computer industry 
i* hr IBM it is inevitable that 
nm-i uf the developing trends 
iu-gin in IBM installations and 
many '±o no further. 

When computer users talk 
of plug-compatible equipment 
they almo.-t always mean IBM 
p 1 ii'h-cu m pa tible hard ware—i .e.. 
memory, disc drives, tape 
drives, printers and terminals 
designed specifically to be 
attached to an IBM mainframe 
vompuier. Most plug-compatible 
peripherals offer performance 
similar to Hie IBM device, 
which has been copied, but at 
a much lower price. Where 
competition is intense, as io the 
iii-piay terminals field, plug- 
compatible manufariurers have 
to offer not only a very com¬ 
pel ilive price but 3 product 
which offers several features 
-.vhirh are superior to those of 
the original IBM device. 

At first sight simply to copy 
a product made by another 
company and offer it at a lower 
price seems an unsatisfactory 
ba.»i> for hmiding a business 
but peripheral manufacturers 
have no aliernativc except to 
win a major part of their busi¬ 
ness tram IBM users. Most of 
The oilier mainframe manu¬ 
facturers do not build a full 
range of peripherals themselves 
and therefore are potential 

customers for products made by 
oitside companies. But few 
of those other manufacturers 
do enough business worldwide 
to provide a specialist peri¬ 
pheral manufacturer with an 
adequate outlet for hi6 pro¬ 
ducts. IBM does not need to 
buy in peripherals: it has the 
capability to build all it needs 

Yet only the IBM user base 
is large enough to offer the 
.specialist peripheral manufac¬ 
turer sufficient scope for "row'd!, 
and thus it is that companies 
like Memorex, Telex, ITT Busi¬ 
ness Systems and Storage Tech¬ 
nology Corp have grown fat by 
selling their add-on memory and 
peripherals into the IBM user 

Today every new announce¬ 
ment from IBM is quickly 
followed by announcements 
from the plug-compatible manu¬ 
facturers. Storage Technology 

has just announced add-on 
memory for the 3030 series and 
Control Data has set up a 
complete new subsidiary which 
will do nothing but market disc 
drives, printers and terminals 
designed for use with the IBM 
Series 1 minicomputer. 

Installations like the one on 
winch British Airways runs its 
BABS reservation system are 
becoming more and more 
typical. A!though the main¬ 
frame <mnputera are 370/168s 

from IBM, they have additional 
main memory from Memorex, 
the disc drives come from Itel, 
terminals from Incoterm and 
FerrarHn and printers from 
Promo data. 

The principal drawback of 
such mixed installations is that 
if some serious maintenance 
problem arises, it may be 
necessary to call in engineers 
from up to half-dozen different 
suppliers. Needless to say 
demarcation disputes can arise, 
with each engineer blaming the 
equipment from one of the 
other suppliers for the failure. 


The easiest solution to this 
problem is to bring in an inde¬ 
pendent mainteance operation, 
and that is what British Airways 
has done. The company in 
question is the Australian 
DPCE i Data Processing Cus¬ 
tomer Engineering). 

British Airways signed a two- 
year contract with DPCE in 

1976 and has just renewed it. 
The introduction to DPCE came 
from the Australian national 
airline Qantas. which works 
closely with British Airways. 
Qantas has followed the IBM 
plug-compatible route to its 
logical conclusion by replacing 
its IBM mainframes with two 
470V/5 processors from 

Amdahl pioneered the IBM 
plug-compatible CPU, and now 
offers three different models in 
its 470 line—the V/5 to compete 
with the IBM 3032. the V/6 to 
compete with the 3033 and the 
V/7. due for first delivery next 
month, which is more powerful 
than anything carrently avail¬ 
able from IBM. The Amdahl 
machines are not cupies of the 
IBM processors but completely 
new machines which are cap¬ 
able of running all IBM system 
and application programs un¬ 

Amdahl only supplies and 
maintains processors but Itel, 
wihch started out as a leasing 

company, is now able to offer 
customers a near-complete 
system, including IBM plug- 
compatible CPU. and a wide 
range of peripherals, all manu¬ 
factured for it by other com¬ 
panies. It also provides main¬ 


The plug-compatible business 
sounds an easy way to make 
money but suppliers are by 
definition always one jump 
behind IBM; and IBM has no 
intention of making things any 
easier for them than it has to. 
New releases of hardware and 
software from the company 

frequently include features 
which their competitors believe 
are put there more to frustrate 
the plug-compatible suppliers 
than to improve the perform¬ 
ance of the system. 

The plug-compatible vendors 
argue that IBM has no grounds 
for complaint and point to the 
enormous order back-log which 
the company has built up, a 

back-log which has resulted in 
lead times stretching up to 
three years for new products 
like the 3030 series processors. 

“IBM has delivered every 
large-scale system it could build 
even after our arrival in the 
market." says Dr. Gene 
Amdahl, founder and chairman 
of Amdahe Corporation. 
“Therefore we have not taken 
any business away from them.” 

Although the plug-compatible 
market is overwhelmingly 
dominated by companies feed¬ 
ing off the IBM base, other 
mainframe manufacturers have 
occasionally become targets for 
add-on equipment vendors — 
and they typically met in a 
much more violent fashion than 

The most interesting example 
in this country is the attitude 
of the native mainframe com¬ 
puter manufacturer ICL to users 
that install add-on memory 
or peripherals from indepen¬ 
dent suppliers. ICL’s policy is 
to charge its users a levy, or 

All you 

need to 

‘Total service’ is a 
growing need 

licence fee as ICL prefers to 
rail it, amounting generally to 
20 per cent of the monthly 
rental of the equivalent ICL 
equipment This could be the 
equivalent amount of ICL add¬ 
on memory. 

ICL justifies this levy on the 
basis that the development 
costs of ICL systems software 
are included in its hardware 
prices instead of being charged 
for separately, and that ICL 
must therefore recover these 
costs through the levy if a user 
decides to instal plug com¬ 
patible hardware from another 

But some ICL users have not 
accepted the levy without 
protest. Over the past year or 
so the ICL Computers Users* 
Association has tried in vain to 
persuade ICL to change its 
policy, while at least two users 
that installed add-on. memory 
from the independent supplier 
Systems Reliability refused 
point blank to pay the levy. At 
the same time the Central Com¬ 
puter Agency (CCA), the office 
through which all computer 
equipment is ordered, com¬ 
plained to the Office of Fair 
Trading (OFT) about the 
policy, albeit without eliciting 
any firm response. 

The levy must be particularly 
galling to central government 
computer users since they are 

obliged under the Govern 
menfs single tender policy ti 
buy all their big computer : 
from ICL. Interestingly,; tfe, 
two ICL users that challenge! 

ICL directly over the levy ban 
both now changed their main¬ 
frame computer .. supplier. 1 
neither of them being centra * 
government users. 

It is not just the levy tt&f 
that has caused frustration. Las 
year Systems Reliability con • 
plained to the OFT about ICL* 
policy of refusing to suppl¬ 
iers with the equipmen 

needed to add memory over ; 
certain limit to an ICL systciL* i 
if the memory is not from ICLj ! “T) 
The equipment is called a ston I | ? 
extension unit. As with the CC/1 » s 
complaint the OFT made hi 
firm statement on the mattei 

The only significant conces 
sion made to plug-compatibli 
manufacturers up to now b< 

ICL has been to allow a use 
to replace completely his ICI 
disc storage systems with di» 
systems from an independent' 
manufacturer. Hitherto the nsej 
had to have at least one ICI- ' 
disc system. But users still frav< 
to pay the 20 per cent levy il 
they instal disc systems froa 
an -independent suppUer. 

Tim Palmer, 
and Keith Jones. 

Computer Weekly 

© Operating leases on new 
IBM 3030 series 

& Flexible shortterm 
leases on 

• Second-user 370 machines 

• Renta I-credit/purchased 370 machines 

• Second-user 360 systems 

© Worldwide brokerage 

If you are considering 
changing or upgrading 
vour system, don’t just 
call IBM, call SCL. 


understandably seduced by the 
financial advantages of having 
a mix of equipment from 
different manufacturers often 
end up with a bewilderingarray 
of equipment, systems and soft¬ 
ware. Such users usually have 
a great deal of experience and 
expertise, otherwise they would 
not have been able to put 
together such complex systems. 
But the same expertise can also 
bring its own problems in that 
it can complicate the servicing 
of the equipment on the site. 

Maintenance is usually done 
by the hardware supplier or 
manufacturer, but in a mixed 
configuration this could mean 
three or four different engineers 
attending to separate items. In 
most cases servicing in such a 
manner does not present many 
problems. System breakdowns 
can usually be identified by on¬ 
site staff and the appropriate 
action promptly taken, like call¬ 
ing in the engineer from the 
manufacturer which provided 
the defective unit to sendee the 

But there are times when it 
can be difficult to pinpoint 
exactly where the fault lies. A 

software error, for example, can 
usually be identified and 
corrected by systems analysts 
and programmers on-site. But 
occasionally an assumed soft¬ 
ware error tuns out not to be a 
software error; it only seemed 
so. In reality the fault could 
lie in the central processor, or 
a disc or terminal, and it could 
be extremely difficult to identify 
just which piece of equipment 
has gone awry. If the items are 
from different manufacturers, 
which does the user call on for 

In cases like that an engineer 
who knows ail there is to know 
about the site could be very- use¬ 
ful. An on-site engineering 
team would he ideal but very 
few organisations find it 
economically feasible to employ 
their own teams of engineers. 

The next best thio? is to 
make use of an ‘independent 
maintenance company, which is 
near enough to the user having 
his own engineering team as to 
make no difference. The 
benefits of having just one 
maintenance contract to cover a 
variety of equipment are 

Independent maintenance 

companies developed because 
of the growth of the plug com¬ 
patible industry. The arrival 
of equipment capable of inter¬ 
facing with mainframe com¬ 
puters from suppliers other 
than the mainframe manufac¬ 
turer was responsible for the 
concept of “total service” for a 
computer site with a mix of 


The independents are now 
well established and growing. 
Their credibility is enforced by 
the fact that in some cases 
manufacturers have wanted 
independents to take over ser¬ 
vice in areas where their own 
coverage is not economically 

In choosing a service com¬ 
pany the user needs to be satis¬ 
fied that the independent can 
provide a service which is as 
reliable and efficient as that 
provided by the manufacturer. 
The manufacturers’ attitude 
towards the independent needs 
to be checked because some 
might- not like the idea of 
independents taking over the 
servicing of their equipment 

On the other hand a site with 
a variety of equipment might 
find that independent main ; 
tenance is the only possibility 
because some manufacturers are 
often reluctant to allow other 
manufacturers access to their 
equipment. Independent main¬ 
tenance can also sometimes be 
the only alternative when 
second-hand or obsolete equip¬ 
ment is being used. 

In turn the independents will 
need to be satisfied that their 
engineering teams possess 
sufficient technical knowledge 
to carry out the proposed 
maintenance application 

efficiently. The independent will 
also have to ensure that tech¬ 
nical documentation, which in 
some cases is provided as a 
right to the user, is available 
because other suppliers may 
prefer to keep such documenta¬ 
tion. Spare parts are another 
vital problem. They must 
obviously be easily available to 
the service compaay. 

If those points are satisfied, 
then “total service" ought to 
mean just that 

Chris Thornton 

Computer Management 

Second-hand market can 
produce a bargain 


Europe’s most experienced 
Computer Leasing company 

★ Flexible lease terms. 

★ Machine upgrade options. 

★ Equipment exchanges. 

★ Hardware and software support. 

★ Installation planning service. 

Standard Chartered Leasing 
Company Limited. 

79 New Cavendish Street 

London WIM SAJ ^ ^ 

Tel: 01-5S0 0302 Telex 268094 _ 

Offices in Dusscldnrf and Paris 
A member of the Standard Chartered Banking Group. 

SECOND-HAND computers are 
a flourishing part of the data 
processing scene, and providing 
the prospective purchaser of 
such equipment adheres to 
some basic rules there is no 
reason why a used machine 
should not prove to be as satis¬ 
factory as a new machine. The 
key rule is that the buyer 
should have a very good idea 
of what the machine is going 
to be used for and for how 
long. If the machine can do the 
job for which it is intended' it 
should not matter if it is 
superseded by new technology. 

Lower prices are one of the 
chief benefits of buying second¬ 
hand machines. IBM equipment 
accounts for about 90 per cent 
of used market transactions and 
the machines sell at an average 
of 70 per cent of list price. This 
price is _ higher than for 
other manufacturers' machines 
because of IBM’s policy 
towards used machines. The 
company accepts responsibility 
for continuing the maintenance 
of its machines at subsequent 
sires, wherever they are. The 
company's equipment com¬ 

mands a high resale value for 
that reason afid that is also 
capitalised on by leasing com¬ 
panies which can offer low- 
cost leases on IBM machines 
secure in the knowledge that 
profits can he made from 
second, third or fourth leases 
of the equipment. Savings can 
also be made by leasing used 
IBM machines with plug 
compatible peripherals. 


Large companies which are 
experienced computer users 
are generally more ready to 
accept seconds than axe small 
companies. A glance at some 
of the transactions conducted 
by one of the largest leasing 
companies, Standard and 
Chartered, indicates the accep¬ 
tance of second user machines 
by large companies. Among the 
big system movements that 
Standard and Chartered has 
been concerned with are the 
transfer of a 370/145 from 
Pilkington Glass, St. Helens, to 
Clarke Chapman at Gateshead: 
a 370/168 from CNRS in Paris 
to Quelle at Nuremberg: and 

an IBM 370/125 from Burling¬ 
ton in Basle to Duckhams in 

Customers who buy second¬ 
hand computers obtain a well 
tried and tested machine range 
whicb has had all its bugs 
ironed out. Another advantage 
is that the buyer can often 
achieve a quicker delivery of 
secondhand machines. It is quite 
usual for delivery times of new 
equipment to be quoted in 
terms of months, and a waiting 
time of a year is not unknown. 
Ordering second-hand machines 
can save that time. 

When buying secondhand 
machines the customer :s 
advised to choose a broker who 
will provide before and after 
sales service. Most brokers do 
so, and many are usually willing 
to assist in projects at all times. 

According to Barry Cross, of 
Computer Resale Brokers, a 
broker’s main resource is a 
technically skilled staff who can 
recognise or anticipate comput¬ 
ing trends: see the potential of 
machines and acknowledge their 
limitations: Forecast technical 
developments: and advise 

clients of the arrival of equip¬ 
ment which the broker believes 
might be of use to the customer. 

When buying secondhand 
equipment, the basic rules to 
follow are to check the docu¬ 
mentation covering the equip¬ 
ment’s background history; 
establish the precise age of the 
machine: check that the operat¬ 
ing, systems and engineering 
manuals are complete: establish 
that plug-compatible equipment 
is approved by the manufac¬ 
turer and find out that every¬ 
thing about the software 
included in the equipment is 

Buyers should also satisfy 
their curiosity on performance. 
Will it perform as reliably as 
promised? They should ascer¬ 
tain that add-on units from 
alternative suppliers - can be 
incorporated into the system: 
make sure that software sup¬ 
port is available and, finally, 
discover if the machine is 
eligible for a standard mainten¬ 
ance contract, and find out how 
much longer the equipment can 
be maintained. 

Chris Thornton 

Reliance House. 

150/152 Bath Road. 
Maidenhead. Berks. SL6 4LD. 

Tel: Maidenhead (0628) 23391 
Telex: 848557 


Grienbachstrasse 17.' 

6300 Zug. Switzerland. 

Tel: 042 31 8587 Telex; 78770 


Computer Leasing 
Maacschappij B.V. 

P.O. Box 130 
Laanweg 8 Spij'kenisse, 


264 Rue du Faubourg Saint 
Honore, 75008 Paris. France. 

Tel: 764 1166 Telex: 641963 


Montanustrasse 1. Bens berg. 
5060 Bergishe Glad bach I, 
West Germany. 

Tel: 2204 54047/9 
Telex: 8873403 

Via Puccini 3, . 

Milano 2012), Italy. 

Tel: 87 92 20 Telex: 33576 


Avenue Des Gloires 
Nationals 98, B.P. No. 4. 

. 1080 Brussels, Belgium. 

Tel: 426 98 82 Telex: 24154 


1090 Wien, Wasagasse 4/4. 

Tel: 34 66 91/34 93 42 


Computer companies come in all 
shapes and sizes. We may not be the 
biggest, but we've pioneered more 
advances in computer technology than 
any of our competitors. 

Computers too,don f t have to be 
big to be sophisticatedBy making 
computers small weve helped many 
businesses to grow bigger and better. 

The V77 minis let everyone think 
big. Their flexible communications 
facility allows literally hundreds of 
separate terminals. 

And toprove that small is beautiful, 
and simple, the Sperry Univac BC/7 

is a small business computer that can 
tell you in plain English exactly what 
to do to get the information you’re 
after. So it doesn’t take an expert to 
operate it. 

Our famous 90 and 1100 series 
mainframe computers though are real 
giantswhenitcomesto problemsolving. 

Were big in software too. 

At Sperry Univac we’ve developed 
computerised systems to cope with 
anything from stock control, through 

mvoiring,to an entkere-schednling of 
your production programme. 

So, whatever your problem, 
contact us.You maymot be the biggest 
in your field, but tfiatk no reason why 
you can’t afford the best iacoraputers. 

Write for full details of all Speriy 
Univac computers and systems to: 
The Marketing Director, 

Sperry Univac; 

UK Headquarters,London NW10 8LS. 
Or phone 01-9612110; _ 




Financial Times Wednesday July 19 1978 


The quiet revolution 

JUIET revolution is under 
• in the computer industry, 
its implications for com- 
;r user and supplier .alike 
» scarcely begun to be 
ressed. The cost and price 
ardware has plumetted over 
past ten years, and with new 
e cnmpact- forms of semi- 
iuctor- technology coming 
ir every year the decline in 
cost of hardware shows no 
of .slowing down for at least 
[her decade. 

he cost of software on the 

other hand is a people cost, and 
the normal increases in the cost 
of employing people is com¬ 
pounded, in the computer indus¬ 
try by the critical shortage, of 
trained .programmers and 

Yet despite the impUcations of 
these two opposing trends, 
computer manufacturers have 
traditionally quoted an aU-in 
price for hardware and software 
—in effect giving the system 
software away free. They have 
thus educated users to regard 

Third party 

JPANTES THAT buy corn¬ 
ers and lease them out to 
-users lead on interesting 
. They can make a great 
l of money but they can also 
.! a Iol Over the past 10 
j-rs a number of them, 
. rriaUv -in the U.S., have lost 
k.rty. Why ds this ? 

_ he explanation must start by 
"'bussing what third., parly 
iputer leasing ds all about— 
that means IBM. 

.nyone with any knowledge 
he computer business knows 
t it is dominated world-wide 
Jia IBM, Japan and Britain 
the only major countries 
Mit.'re the U.S.-based giant has 
Vir taken the majority of the 
*ket for medium to Iarge- 
e computers. In Britain the 
i’s share of the market is 
red up roughly equally be- 
• en IBM and the home manu- 
urer ICL. 

, [ "he abundance of IBM com- 
“ers is one of the most impor- 
t reasons why most third 
tv computer lessors main- 
H"";* 1100 per cent IBM port- 
; ,1ns. But of equal importance 
BM's policy of providing eri- 
?ering services and support 
systems software to almost 
users of its computers almost 
where in the world, whether 
y buy or rent from IBM 
•If. or lease a new or used 
.•bine from a third--party 
or. or buy a used machine 
« just about any source. 

*• his is of course similar to 
all embracing service 
ties of some manufacturers 
planes and luxury cars, but 
ught to be pointed out that 
l’s accommodating altitude 
ilsn encouraged iu no small 
isure by a consent decree 
: it signed some years ago 
:n threatened by the U.S. 
i-trust 13M s. 

- * hird party lessors also 
mr IBM computers because 
feel that they can estimate 
.... residual value - of an IBM 
- ..-hine, say in four or five 
rs time, more accurately 
1 that of a less popular make 
computer. If they get it 
it and have the marketing 
ertisc to place the used IBM 
hine witli another lessee 
n it comes off the first lease 
' can mire than cover what 
ost to buy the machine in 
first, place and make a 
thy profit on the whole 
“at ion. 

?cause the lessee only has to 
•r part of the cost of the 
hine in his payments under 
type of lease—an operating 
e as it is called—it can 
him significantly less than 
ing from IBM. 
one lessees still favour the 
e traditional finance lease, 
re the total cost of the 
hine plus interest charges 
the lessor’s profits are all 
■red by the lessee’s pay- 
ts. but the finance lease 
Ives a longer term than an 
■ating lease, seven years 
r typical, and this does not 
•al to the type of lesssee 
wants to be able to replace 
achine after; say four years, 
a computer offering more 
mred technology -or more 
o for money. This is where 
i party lessors face their 
t serious problems. 

expensive and equally effective 
alternative to the newer 370 and 
the values of 360 machines 
firmed up. 

However, there are those who 
now think that today’s 370 les¬ 
sors could suffer the same 
fate as the 360 boys in 1971 
especially following the an¬ 
nouncement last year by IBM of 
the 3031 and 3032 which -super¬ 
cede -the medium toi large 
machines in the 370 series. The 
new machines are virtually 
identical to the 370s they 
replace but are significantly 
cheaper, mainly because IBM 
charges a lot less for their semi¬ 
conductor-memory, the manu¬ 
facturing - cost of which is 
continually f allin g. 

Suspicions about the real 
residual values of big 370s out 
on lease following the 3031/3032 
announcement were aroused, or 
made stronger, late last year 
when underwriters at Lloyd’s of 
London stopped providing cover 
on the residual values of leasts 
IBM computers. 

The Lloyd’s “J” policy, as 
it was called- in the leasing 
business because the proposal 
is written on the Lloyd’s form 
coded J which is used for mis¬ 
cellaneous policies like film 
stars’ legs, was used extensively 
by some third party lessors in 
Europe and the U.S. to assign 
in some cases inordinately high 
residual- values 4 to machines 
they were placing, in order to 
offer lessees very favourable 

hardware as valuable and soft¬ 
ware as cheap. Yet a computer 
without software is a heap of 

Needless to say, IBM is well 
aware of the threat posed by 
these two opposing trends, and 
in the past couple of years has 
made subtle moves to redress 
the balance. The overwhelming 
mass of IBM’s system software 
is still free but new introduc¬ 
tions and enhancements usually 
have a sale price or rental fee. 

At the bottom end of the 
business systems market, a new 
policy pioneered by Burroughs 
with the B80 and followed by 
NCR on the 8250 and IBM on 
System 34 has aroused consider¬ 
able concern in the U.S. 

People buying these small 
business computers cannot now 
buy the system software out¬ 
right with the machine Instead 
they have to pay a monthly 
rental to the supplier for the 
system software, without which 
the machine is useless. This 
means that when they come to 
sell the machine they can only 
sell the hardware The new 
user has to go back to the sup¬ 
plier and sign a new rental 
agreement for the system soft¬ 
ware. There is no suggestion as 
yet that this will be anything 
more than a formality but it is 

dearly open to the supplier to 
refuse to license the software to 
the new user. 

At the other end of the scale 
IBM has introduced an en¬ 
hanced version of its large-scale 
MVS operating system called 
MVS/SE. This requires 13 
instructions which are addit¬ 
ional to the standard instruc¬ 
tions set on the IBM 370 line 
but are standard on the new 
3030 series. If a 370/158 or 168 
user wants to gain the perform¬ 
ance benefits offered by the 
enhanced version of the operat¬ 
ing system he has to add to his 
processor extra circuitry called 
Extended Feature. It is fairly 
easy to add Extended Feature 
to a 158 because the instruction 
set is microcoded, and it will 
cost him £9,480. However, the 
instruction set on the 168 is 
hardwired and to add the Ex¬ 
tended Feature costs a formid¬ 
able £47.000. 


In addition, there is a 
monthly rental charge for the 
MVS/SE software of £951. 
whereas the basic MVS operat¬ 
ing system comes free. 

In part it is probably true 
that trm made this move in 
order to make life tougher for 

the plug-compatible 370 
vendors like Amdahl Amdahl 
has written software called 
MVS/SE Assist which performs 
the same functions as the 13 
additional instructions on the 
3030 series and enables users of 
the Amdahl 470V series 
machines to run MVS/SE. How¬ 
ever, the user is then faced with 
two monthly rental bills for 
system software; he has to pay 
Amdahl $250 a month (no UK 
price has yet been quoted) for' 
MVS/SE Assist but he also has 
to pay IBM £951.30 for 

That looks very much like the 
shape of things to come from 
IBM, Users have now made 
such an enormous investment 
in applications programs which 
will only run under one specific 
operating system that it is no 
longer feasible for a supplier 
to introduce a completely new 
large system operating system. 
The costs of converting to it (as 
ICL users making the conver¬ 
sion from George 3 on 1900 to 
VME/B on 2900 will testify) is 
such that most users would 
simply not be prepared to make 
the switch! Late last year 
Univac shelved for this very 
reason a major project to 
develop a new operating system 
designed to bring together 
users of its incompatible 90 

and 1100 series on a new 
generation of common hard¬ 
ware with a new operating 

IBM is effectively precluded 
from introducing charges for 
existing software products by 
anti-trust considerations. But 
what it can and clearly will do 
is to introduce major improve¬ 
ments id performance to exist¬ 
ing software products like 
MVS/SE for which the user will 
have to pay. 

That suggests that users could 
continue to avoid paring for 
their system software simply 
by continuing to run the old 
software unaltered. Some 
indeed will do so but the 
majority will ultimately decide 
to pay up simply because 
support for new, faster and 
cheaper peripheral devices, 
particularly secondary storage 
and printers, will increasingly 
be provided only in the new 
and paid-for versions of the 
operating system. 

However, by no means all 
changes in the method of charg¬ 
ing for software are simply a 
method of making users pay for 
something they used to get for 
nothing. Companies have in¬ 
vested enormous amounts of 
money in complex application 
programs, particularly in areas 

like simulation, modelling, 
mathematics and scientific 
applications, and they need to 
find new ways to recoup this 

It is noteworthy in this 
context that manufacturers 
traditionally employed far more 
people on research and develop¬ 
ment into hardware than soft¬ 
ware. Today the trend is 
rapidly reversing so that most 
companies have as many soft¬ 
ware as hardware development 
engineers, and some, Modcomp 
for example, have more on soft¬ 
ware than hardware. 


Control Data pioneered the 
trend towards 41 unbundling ”— 
i.e., charging separately for 
hardware and software. It is 
now pioneering another deve¬ 
lopment in charging for soft¬ 
ware which is likely to be 
applied much more widely in 
the future. 

Called Usage Pricing, the new 
Control Data policy is not, as 
the name implies, a wicked 
means of squeezing more money 
out of the user. Rather has it 
been introduced in acknowledge¬ 
ment of the fact that it is waste¬ 
ful to devote major resources 
to developing complex applica¬ 
tion software packages and then 
price them out of the reach of 
many potential users. Usage 
pricing has so far only been 
applied to one package. 
Apex 2IL which is an advanced 
mathematical suite for linear 
programing, which runs on 
Control Data’s large-scale Cyber 
170 machines. 

Apex III has traditionally 

been offered at an initial charge 
of $2340 plus a fixed monthly 
charge of $910. Under usage 
pricing it will eost as little as 
$100 a month plus a small initial 
fee, and a routine built into 
the program w ill determine the 
extent to which it has been 
used. The charges will be 
determined during routine 
maintenance checks on the 

The charges under usage 
pricing should never exceed the 
standard monthly rental fee< 
because if a customer’s use of 
the package runs up bills in 
excess of the fixed price he will 
be able to convert his contract 
for the software to the standard 

The move has been generally 
welcomed by Control Data cus¬ 
tomers, many of whom are 
universities which will for the 
first time be able to justify the 
cost of putting up an expensive 
package like Apex III which 
might not be used more than a 
handful of times a year. 

The rapidly growing cost or 
software means that it now 
represents a large proportion of 
the value of an installation. 
Today that value is made up 
almost entirely of application 
software but the value of the 
system software is beginning to 
climb and will assume a grow¬ 
ing importance. Already the 
Basic or APL interpreters for 
the IBM 5100 desk-top com¬ 
puter come on a read-only 
memory* chip—hardware given 
away with software—and that is 
very much the shape of things 
lu come. 

Tim Palmer 





1964 IBM introduced the 
series, the computer range 
. generated enough sales to 
IBM streets ahead of its 
petitnrs in the computer 
ness. Leasing companies 
t overboard for the 360 ana 
iht- it ■ in large numbers, 
ming that they could place 
i with e^se. They did so 
[ 1971 when disaster struck 
ie fnnfi of the 370 series. 
ie 370 was nothing more 
a souped-up version of the 
being software compatible 
not radically different in 
ware terms either, but this 
not stop thd bottom falling 
3f the 360 market, 
ssors had to write substan- 
aniounts off the residual 
l*s of 360 machines out on 

■ and had tremendous 
Jems placing 360s still on 

■ books. The result was 
sonic went bankrupt and 

rs were taken over, 
ippily. in the years fol- 
iy maw IBM users came 
10 k upon the 360 as a less- 

When these machines start 
coming off lease, which they will 
do in just over a year’s time, s 
lot of them will not realise 
their assigned residual values 
and claims will be made on the 
Lloyd's underwriters which will 
amount to many millions of 
pounds, tens of millions quite 

. However, the J policy is 
worded in such a way that tile 
underwriters may very well not 
be obliged to pay the difference 
between the real and assigned 
residual value on a machine in 
many cases. 

The lessor or the leasing bank 
that funded the machine will 
probably have to accept the loss, 
but in some cases the lessee may 
suffer because in some leasing 
contracts the lessee is obliged 
to make up the difference if the 
machine does not realise its 
residual value and the Lloyd’s 
underwriters refuse to pay out 
This could apply to some seven- 
year lease contracts with a third 
or fourth-year break clause. 

But it must be stressed that 
most lessors have not abused 
the J policy in this way and 
indeed some of them have never 
depended on it to pick up busi¬ 
ness at all- 

At the same time the third 
party leasing business is enjoy¬ 
ing good health at the moment 
for various reasons, the main 
one being that it makes eco¬ 
nomic sense now to purchase or 
lease on IBM computer rather 
than renting from IBM.. While 
IBM reduced the purchase 
prices of the 3032 and 3032 
dramatically compared with the 
older machines, it hardly 
reduced the rental charges at 
all, mainly because it wants to 
encourage purchase rather than 
rental deals in order to maintain 
.its growth and profitability. This 
means that a. lessor can buy a 
machine from IBM and lease it 
at rates that compare very 
favourably with IBM’s rental 

One third party lessor doing 
good business at the.moment 
is the UK company United 
Leasing, which placed £10m of 
new IBM machines between 
April and June this year, ’ in¬ 
cluding the first 3032 processor 
to be installed in Europe. The 
customer was Shell Nederland 
BV in The Hague. Some of 
United’s other clients include 
organisations' like France’s 
Credit Agricole, said to be the 
largest bank in Europe, and two 
major UK organisations, the 
Central Electricity Generating 
Board, and the British Gas 
Corporation.' All this goes to 
show how just about any type 
of computer user will opt for a 
lease if it makes economic sense 
to do so. 

Keith Jones 


With our factoring service, you’ll be paid 
as regular as clockwork. 

How much you get, and when you get it, 
depends on your debtors. 

After looking at their record of payment, 
we work out the average time it takes them 
to pay 

Say for argument 5 s sake, the average is 
sixty days. Then we’ll settle all invoices on 
the sixtieth day no matter when your 
customers pay us. 

(If it helps, we’ll advance some of the 
money even sooner and we’ll hold the 
interest down to between 2% and 4% per 
year above Barclays base rate.) 

We’ll also give each of your debtors a 
creditlimit So if they go to the wall and can’t 
pay we’ll settle the account up to the agreed 

What does it cost? 


* For the basic factoring service, we usually 
charge between 1% and 2% of your gross 

We can give you an exact figure when we 
know the size of your company, its average 
invoice value, the number of customer 
accounts and other details. 

How do we collect 
the money? 

We certainly don’t write clumsy letters 
or make unfriendly telephone calls. 

Our approach, as you might expect from 
Barclays, is more understanding. 

We’ll lean over backwards to collect the 
money without upsetting your customers. 

First of all, we suggest you write to your 

customers explaining our appointment 

Then, having adopted your sales ledger 
(which in itself should save you a tidy sum), 
we keep a dose watch on every invoice you 
send out. 

From then on, polite reminders are sent 
until your customers pay up. 

There are no hard and fast rules about 
this. It depends which business you’re in and 
what’s considered a reasonable settlement 

As a last resort, but only after we’ve cleared 
it with you, we might take legal action. 

The main thing is that you won’t have to 
get involved. 

You’ll be left to run your business while 
we ran after the money. 

What do bankers know 
about factoring? 

There’s no doubt that factoring requires a 
'specialised knowledge not always assoaated 
with banking. 

For this reason, we run a separate division 
called Bardays Factoring. 

John Hartgill, our Business Development 
Manager, is the man you should contact, 
either directly or through your local branch 

The address is Bardays Factoring, 

Business Development Department, 

P.O. Box 9, Paddington House,Town Centre, 
Basingstoke, Hants. RG211BE. 

Telephone: Basingstoke (0256) 56161. 


Ultimate Holding Company-Barclays Bank Limited.Registered in London, England. 
Registered number: 973765,Registered Oiilice: 54 Lombard Street, London EC3P 3AH. 


Financial Times Wednesday, July . 19 1978 


Dow retreats 10 after recent strength 

INVESTMENT DOLLAR and Copper, Allummiiira. Retail. U.S. Gym.nm 1* to $251- Halli- nominal Of stock (DM fLIL thS*iDdus^ to^o^H 

PREMIUM ■ Unu: and Semi-conductor issues, burton 12 to S60] and Hewlett- Mark Foreign Loans also eased f^Y orSdlSion Vo^ June. OakbrMge 

S2.60 tn £1—1083"; (106?"i) , " 1 .P r “ v « d . Meond^uartor cor- Packard 15 i0 $83afresh. trial produrtmn rose m ^ ^ ^ 

Effective $IM35-51% (491%) g[JJ5 THE AMERICAN S.E. H£ket jJSt less than a month, the “"jg™ 

INTEREST RATE WORRIES and ^ ai Value index came back 0.68 to TOKYO Bourse index had risen by over ^though 

>nme softening in the dollar com- ‘ 4Wim |M1M IT ^ 130 J 7 on volume of 3.21m shares ._ ,f ftS hkm 8 per cent. .u-i fflc on 

bmed with technical factors 
caused Wall St ret to retreat yes- 


NEW YORK-dow jones 

yesterday. ■ In contrast, 
receded 5 cents tc 

S*,2S- ? iSLT'.fi uSh- «.wr ** 

Among Airline Issues. United 
Airlines gained Sli to $33 in 1 ' 

active trading, but Trans World “°™jJ 3 

Market moved in similar fashion ® 

advance of 
mixed. Kratos on a 

terday in moderate trading. active ^^ne. out irans non „„r r o ,, 5 rn «i« but Sarcent ulu supsgquenuj - among O ls. Chemicals. meiais. 

tS DoTJ onesIndustrial Airline eased $* lu C»M»th p^fSSd by profit-taking. EteStaals and Stores, while Hotels 

Average sustained n setback of rejinried J a rge increases 12 ., t0 c-/-the latter is holding The NikkeLDow Jones indicator and Mechanicals were mainly 
10 0,1 at S23.00 and the NYSE secund-quarter net profits. h 10 bvir—uie “ u 5. r —■ fi M n» - —.—.1 n-m down 

All Common Index receded 47 Allegheny Airlines rose £ 

.Average sustained n .xcioactv 01 ■ _-. — n eTi—ihp latter is holding me mKKei-uow jont-s muiww* ana .■ ««« —■***_i.„> u c . #>r R ronta 

10 0,1 at S23.00 and the NYSE second-quarter net profits. « »*ttesSe oflu ^ets was finally a marginal. 0.70 down higher. _ _ _ . ^^SSSSJSbU Bougaln- 

All Common Index receded 4i Allegheny Airlines rose S3 to - . . trL . ilp on the day at 5,636.15, after an LocabaiL. Simnord, GTM, Bore!. rnooer declined 8 cents to 

cents 10 <34.45. while declines out- sill—ic intends to serve Atlantic Amdahl eased J toj^jjf r sp n , £? eariy upthrust to a post-war sadlor, CM Industries. Sommer- vllle Copwr aecunea «to 

paced rises by flS2 to 483. Trading City with direct scheduled service of increased second-quarter net recor d high o£ Volume Al ub ert an d Maritime Chat-gears Ag-32 and Movmtma centra 

volume came to 22.S6m shares, i liis Autumn. American Airlines profits. GDI retreated 1| to JJI increased to 280m shares from Remits were notablyfinner, but gShTfantairfSeeiito to jSS 

down K.32m from the previous added Si in brisk trading. after it refused an offer to acqu re Monday’s 220m. Loeafrencc. Fechelbronnt Re- ,S, i° wm 

dayN ratal. 1CN Pharmaceuticals improved 35 per cent of an Atlantic City some export-orientated shares doute. Chiers, Esso and Cotelle an r „JJSJfff &ader ome 

Analysts said recent market Si to S5—the company has signed Hotel. advanced after the Bonn summit lost ground. hark annthor 4 cents to AST 4 ft 

Juh- [ July j July j July , 
17 j If j 13 J 1* j 


InduM rial... 




TnuHof voL 


■ j ' ' | . 1 

828.00 859J8:889.83; 821.7^824.88! 

87.15, 87.00 K.W[ S&.fifij B7Jfcj 
228 J2 227JUj 22B.56' S!5.07j 29&.B6j 
106.18 WtSBl 106.851106.46j l«.72j 

»,880i 23.180 26.57oj iU.Sltf 

; f * > 1 

High ! Uiw 

atnea euuipHi H i 

RtRti l~uT 

I i&vei 

8fi.7S) 90.U 
; * 4,-11 

MfrWUntHUB' - 
86.(5 , — . 

IU.71 I 878.88 021 

(9/11 Glim Qnxr' .. 
\m* T IS8.K HU*, 1 , 
«20/4/fi8i (38*#. 

Iml. div. yield % 

-7 [ Jane-SO [ Ofaar ag* Approv). 

down KA2tn from the previous added Si in brisk trading. .... ..... -- -——• , , -v—.-—. -. _ , Hamenuev 4 eenis 10 a*v .t n-. . 

day's ratal. 1CN Pharmaceuticals improved 35 per cent of an Atlantic Qly some export-orientated shares doute. Chiers, Esso and Cotelle and Hamereiey.3 BHP^Sme -- 

AnalysLs said recent market Sj to S5—the company has signed Hotel. advanced after the Bonn summit lost ground. back another 4 cents to A37.40 SZASDA&D AND POOR 

gains, particularly last Friday's a “ secrecy agreement with a ended without producing any ahead of the annual results due I 1 

sharp advance, left Wall Street major German pharmaceutical- Germany seri ° us eraoonueGrtrade p j IHL vs, uue 1 Jillv J u iv j J 

due for a correction. concern regarding its anti- viral “ hrnadiv f0r w P ! n ’ '- ana(Ja Among Banks, Bank of NSW jtf! it ■ 

The Federal Reserve’s policy- drug. Virazole. Stock prices were broadly Electric rose Y9 to Y742. Victor . . f ^ p t Tl *** ,4 w _-_ 1 --J- 

«sT js «s x&m 2s&. te ssssTT-rr ««rta -J2? «. — ^ ^ 

»„o5;, c ffik h " pr “ rad 

hints ntx^ofien provided by Fed Cement Producers advanced index picked up 4.3 more to 8(M).5 this year, while Constructions, ., a wh ; le ®oj| s an d^Gas reacted U rtnn 

L■ ,V“rim.rnm^ni Seeuri- auainat the I rend. Southdown for a two-day improvement of 6.7. Housings, Machines and Steels U 66 - 2 , white Ods and Gas reactc HongKong fa *. *,v. yU-M%. 

no ' ,rnmi:m clin.b 0 j.M_,. WJ. r.enjr.1 Port- jug. I .,**. wnd-/avourei. r _ m< _ E ^ “ ^cL^r. ^SuUefroit Mnrt*, Mse d further on lecel 

The dollar declined against most If»d Cement i! In $12} and H 1 ** 60 ®"* 1 son° more TextUes I.I3 to 178.64. Papers 0.48 to 119.76 profit-taking in fairly active -—— - 

major currencies in European Medusa, after higher second- Karstadt up DM SdK) more- pnnu^s, Chemical «riues ^ Golds 3.9 to 1.433J. trading, and the Hang Sane Index ^8 Ovv. bond yield 

foreign exchange tradinc, with quarter earnings, were 1 up at Daimler advanced DM 4.0Q and Resources stocks clo Y and R Properties rose i to lost 7.91 more, to 549.31, - 

dealers citing scepticism that the nM^a^whileHoescbt, In P™Bt-taking. CS34 and Oxford Development Swire Pacific declined 30 cents n.Y.S.E. ALL COMMON 

just-concludcd economic summit Merrill *->ncb declined SI tn ahead DM -..90,.while HoescUL in Preferred “A” put on ; to C$173— to HKSS.50. white Hong Kong_ ~ - - 

meeling in Bonn would produce SI*, non though j,econd-quarter Chemicals, added ^ Pans a planned merger of the two com- Bank and Jardine Mathesori shed I 1 j i 

any lasting solution to the dollars profits nearly doubted those 0 / a Siemens put on u • . Mainly small mixed movements pa nles and OxJea Development 20 cents apiece to HK$ 18.30 and 

problem. Some dealers, however, year aco were announced jElectrUal s._white ^ recorded involves Oxford buying Y and R HK8I5.10 respectively. Hutchison 18 ! 17 ! 18 l_g_ ! J 

saw a sense or co-operation in Che Font i»rator lost *_ to Schcrtog rose »m . . Brokers said some profit-taking shares for CS25 each. Whampoa .receded 15 cents to 54 4S M a2 l G 4 82> M. 12 . b 

talks. . U . _ u . _ ■'» * 10 8b °i “a"* 1 aSthoritar Bonds had offset the generally positive Bam Petroleum fell C$1 to HKS6.10 and Wheelock 5 cents to S4 '^ M ' 9 | [ '1 , 

ml issues, which benefited rc- and Chrysler I to St I. -.Sfidnfd under nresure losing reaction to the outcome of the C$12—a Utah well, in which Ram’s HKS3.10, although Hong Kong 

gS,^ ro !!.^Cf“SifflL* l lK *JSLI U SK*iS „ & « V„ni? S more. The Bonn eummit meeting, e lower,n, u.s. unit:hes m interMt, ie being LeneIvrere unchejMdIn flWlb.__. 

ended without producing any 
serious new economic or trade 
problems for Japan. Matsushita 
broadly Electric rose Y9 to Y742. Victor 

back another 4 cents to A$7.40 STASH?ARB AND F00BS 

_ , ahead of the annual results, due : j i , ,.__ 

^ ana ^ 3 , ^ t Fr Among Banks, Bank of NSW I*# ! ^ i V 1 I2 ~ j ll *! jjjjjj. Iow 

eig T h h i e ^ 

yesterday, and share prices closed There was some support for 38.87- S7.7S, 97JS! 86^Bj Sfi.s4 35.M mS8 88.90 

pace Cwrapiht 1 !'. 
"1 "Hl«b 1 Lo#-' 

l VbM 154.64 5^8 ■ ■ 

l t6/* !H1/W4)(SIW«V.: 

I 88.90 I 126-36 4.48 m> 

j i&A) ( 1 IUI 1 SS) fl fins**' , 

■ uJ" -- ’ 

June 23 I Y*w«gn (»ppn«,j' 

Hong Kong 

lort. 4ir..rMI % 

ra‘rei-n exchange tradinc with quarter earnings, were 1 up nt Daimler advanced DM 4.00 in and Resources stocks closed lower 
IZV-Tr* Thai the M3. Motors. Deutsche ..Bank moved on proBt-taking. 

Bum and Falls . 

. [ July 18 [ July 17 : July V 

Jutv 1 July July ! July i—— 
IS 17 14 13 ! Hlab 

54.45, 54.921 54.92) 54. Ig 56.20 

rut issues, which benefited re- and Chrysler 1 to SI I. 
c-ently from speculation about IBM receded SI= 
Baltimore Canyon drilling, lost American Telephone 

to S2&4‘, remained under pressure. 

; to $60, up to 40 pfennigs "tore. 

Isauto tnuled.; 1.896 

Uhc»_! 483 

hlla_j 988 

Uui-lHiiueri. n .[ 431 

New Hlftto-- — 

Sew I*iwn—- 

1,915 1.879 
901 1.067 
601 4Z7 

413 i 385, 
84 ; 64 

10 l ■ 18 

Baltimore Canyon drilling, lost American icieprtone : to fcbo, up to tu piciimu «***•*■. . h rs.ii Mnnev rate from 7S abandoned 

ground, as did Motors. Chemicals Burlinglon Northern si to $40J, Bundesbank bought DM 9n.7m of tne cau Money rate irom abaudonea. 

Jardine Loan fell SO cents to j mOHTBXAL 


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Xenix.! £4 

Zaps'*.; 1 B>< 

32 (« 


Zenith Ka*(io_ 143m 

33 Ii 


U^.Trau* 4% UtX. i943fl 
U3Trea*a;^758r' 179ia 

Wool worth_18i* . 19 

W 7 lv.j 4 ; 41ft 

.! 64 54i 2'< ■ lbU 

Zenith tUbiio_ 14*) ; 14te 

U^.Tmm* 4%UtK. i94* : «43e 
USTreft*4;^75« 179-.8 ! ^9r a 
UA BOdavblllr.i 7.09 S ! 6.98g 


•vi xim Inilt .. - ■* 

"chins Brewiu^.J lSiii 

' ..j i:3?i; 

llnoo. 25 s * 

Ure*u»er. 4^>n 

Uuumi. 114 

U.xiiin likiiidnn 30'* 
K»Cip J’niipr _... Zl Ift 
K»M . 

255* 257ft 

! 443a 
14 I 1155| 
30'* 1 301* 

J.igppl tiiuui*....) 33lfl 

I Jill (fcl.VJ. 

luitmi limn*!..22)2 ! 2«?a 

lsa.s>>u-e*l A im-'ii 
l<*ne M*r 
U*njj Iftlan 
Lou lain Da 



noilt Pftper.| 

So it 1 1 Mrg.I 

judder Duo. C«|j| 

.Vpnkco h»BiP.■ 6 

A Uam Aluminium 31--* 

AlSiHUtt Swei.. 221* 

i'bfrtiv _ 4 J-Vi 

duik of Mnaut* 2*)* 
dank Vm» "coda 21 
Uukr Uevnrce.. 4.55 
Ueu Telephone... 57‘z 

Uow Valley 1 net..J 315a [ 32 

K* Omiainer_ 

Sout nun. 

291* I 30ig 

A«ftro* . 

Aihimi-11 hi. 

A life f mi* IVi. .. 
A VC. 


\un I’n.hii-i**... 
Mull tui- .. 

Hank Auii*n*n... 
Umikei" ti. \.V. 
HhiIat Hu 
fft.Ur In,,,*ii.u. 

Ki- tviiUicken-cn 
hi-IIA Hxui'll.. . 

Bril, ii \. 

Hi-utfiu.'i «.«*ii" ‘H’ 

Palilth, III Mr,*i. 
HlHi.-hA IhvkPI... 


H.*I*C I*_ 

lhnU.1t . 


Bnuuir Ini. 

K:a vim'. 

bn-Tui Myci-.* 

|liu;VI1l- Ki u* .. . ' 1718 

HiiImvh IVhIpIi. . b-’i 
lliirlnii;l*>ii.\lhli. 40 s * 

XiiiiiuibIii*. 1 731)1 

lnui|>is-li ."<*ii( ..., a5)i 

i .mini km . . .. ! 
I Rnli-i A Iiuiipih*' 
Lnilrl Hliiiu-t . 

(*1,1*1*1111,r |Hi*). 

I. I-.‘ 

• i*i»il,-i*1. «>l|*ll . . 

I i*iilm* A ... 

I .'*1 Villi ■*,-I., . .1 

i •■.-ini Ah--mu . 1 
i. Im i* MnnliHlmi- 

I iH.-iilh .'il l'k. M 

i In-i l*iut 

I ll** -*|1 *», -ll'lll. 
l lil'.ni** Hn*ii:>* 
i Inv-ln . . 

■ l,l**IHIIM .... ! 

I I 111 *, 'llln n*!, . 
tllK'i'l* . 

■ in.- ."VI vhri*.. .. 
1.ii, lut*-mix 

i .>n l mIh. 

I ,1*-hi* 1'Mill,.. , 

I ■<ll,ll|l*IH in," . ■ J ■ 111 
I ■"liiiii'ift Pi.-1. 21,;, 

1 ..ini.Iit-l ■•.,*'tn, IcAl 
l ■••in mi*I ■••it l-iik., nOlft 
l * 111.111 «linn Ki|. 16'* 
l 'iirn't'■ Kill-■Ii.. 2b'a 
l-ni'n 'll, 0,1 Uii: it's 
i >'mm. NairlliM. 42 
1 ■,iii|nil,*,*S*ii*n,*«*. 11*) 

1 ,(mnriiini 1*1 ** 
i'*n)ml IlftlB .... 
i .**|*pr 

143ft : 











27 ip 











44 m 











23 JA 


lhlp ’ 




29 "p 




■37 U 


13 3 j 




3614 1 


15r 8 ' 




151* • 


17 , a ■ 


6M ' 






a5M : 


1/1* j 


in* • 


20*1 ! 


IU1 i 


l.i*: 1 






4U3rt | 


16 3* 












bZv. . 



11 'n 





24 . 

24 U 








20 U] 

11'* . 


\i • \\ 



22 h< 









21” ' 


42 J* 

U 1 









25 s« 





29t s 



1»* , 

36 It 


54 ifl ' 


BP Cansda._I 16'* 

B m-cun_! 16 

Brine*.)_ t4.20 

Oftntftrv Cooet-.j 39>; 
Cambow Miner. J la 1 ; 
ilamuin Cement .J lOig 
CnimrU MV LftbJ 121 b 

CftoJmfj Zbss 

LnUlftiU Indurt ~l fiO 1 * 

Cu. Fad He. ...'4.. 191; 

Can Fftillc Inw.J 2USft 
LTin. buyer OiU.) b3'i 
Utriing U'knHf.L 4.65 
I'nnk. Afthe>IO>.' 1 ")* 

Chip ltn ill..I S4't 

Comma-..1 273*. 

Can**. bftifiur>i..,[ 29 
L OQciimei Co... | 18"ft 
Lti-eks Kc-auroe*. 6)« 
co-Utin Ik-'i 

Da an Derei...._.i 9 
Uenitou Mine,... 78 
Dim) Miner——| fc6i; 
Lhmie Fwmieum; 67 
D.*min mu Hnrtfit; 25'ft 

Uonitar—. : 18 ** 

Uii*xint—.‘ tMU 

Ffticon'ue A Hiker. 241* 
Von I Motor CM j 72 

■Jenetar ..I 30 

Olftiii Vci'«ftniK| 1 123ft 

Inaftl......' 13 

lulfttkl Am. (iftk.i 113ft 
IntV v MpeUne : 135* 
Kaiwr Kesoope* 14Tft 
Lfturi Pin. Corp.. U5* 
ImJ0 tew Com. 'B'J 4.2U 
*M ml.i'u Hioeai196ft 
UftHmy Petvuaun, 18 

M,**re Uarpu.... 

Miami*) natal eh*, 3.5 a 

Fucifli* Feimieom* 401* 
IViu. Can. Fel'm.J 35 

IVUIIW.' '16 

He-ipifc Def,i n 6 00 
fUkfl'iuiA Uii.. , 0.98 

Ffto'prLVielnjin'ii 22*a 

Fua er Urpmi u; 16 
Fr ice.I 1412 

Uue6e, sturueorl l.o3 

ttamcert'ii.i 32lg 

Keen Shaw.I lOu 

Urn Aljeom.! 337* 

Itoyii Uk.ol Can.) 33&e 
><or«' Tiih-i -) f38iz 

sveplre K'-oiiitp, C3e 

Meftgramr .Z6>e 

slir-i Lftna<iM—...' 14ia 
slitanll l*. Mine-! 5.6 b 
lebeii' *J. U—34 

lillllki.n. s5« 

• lee ui Lana ia... 231* 
•tee*, Mock lnjn.,‘ 3.71 
I wav La no. la.. .1 431* 
LuinnlO LHjnt.Bk.j 20&e 
Iran lanPipolml lb'll 
Iran Mount U|-j b7ft 

UOivolia_ 101| 

iw. -i-«»«r U»ne*j 71* 
iVa*kei Biram—. 34 
rt ertC-oa iTiftn-. lllg 
iV«.LODGen.—...t 18U 

r BU. t AriceO. } rrarred 
* N«*w atnrk 












F37.50 1 
S2S0 , 
1150 i 
P200 * 
F 108.90 
f 118.90 
F27.5J • 

e iso 

KUO ; 
Ft20 j 

23 F364 

5 20 K29.20 



8.50 K102.40 

A.B.X. Bank . 10 % 

Allied Irish Banks Ltd. 10 % 
American Express £k. 10 % 

Amro Bank. 10 % 

‘ • l J Bank Ltd. 10 % 

Henry Ansbacber . 10 % 

Banco de Bilbao . 10 % 

Bank of Credit & Cnice. 10 % 

Bank of Cyprus. 10 «v, 

Bank uf N.S.W. 10 % 

Banque Beliic Ltd. ... 10 % 

Banque du Rhone . 10 *% 

Barclays Bank . in '% i 

Barnett Christie Ltd. . ll % i 
Bremar Holdings Ltd. H % 
Brit Bank of Mid. East 10 % 

■ Brown Shipley . 10 % 

Canada Perm't. Trust 10 % 
Capital C & C Fin. Ltd. 10 % 

Cayzer ud.10 % 

Cedar Holdings . 105% 

■ Charterhouse J 3 phet . 10 "% 

Chouiartons .JO % 

C. E. Coates . 11 9o 

Consolidated Credits . 10 % 
Co-operative Bank ...*10 % 
Corinthian Securities . 10 % 

Credit Lyonnais. 10 % 

The Cyprus Popular Bk. HI % 

Duncan Lawric . 10 % 

Eagil Trust . JO ^ 

English Transcont. ... ll % ■ 
First Nat Fin. Corpn. 12 % 
First Xat. Secs. Ltd. ... 12 % * 

■ Antony Gibbs . 10 % t 

Greyhound Guaranty . 10 % 
Grind lays Bank .JT0 % . 

I H;uubros Bank . 10 a?, 

■ Hill Samuel . 510 % 

C. Hoare & Co.flO % 

■Uilian S. Hodge. 11 % 

Hongkong & Shanghai 10 % 
Industrial Bk. of ScoL 10 % 

Keyser Uilmann . 10 % 

Knowsley & Co. Ltd. . 12 % 

Lloyds Bank . 10 % 

London Mercantile ... 10 % 
Edward Manson & Co. 11 J% 

Midland Bank .. 10 % 

I Samuel Montagu . 10 % 

Morgan Grenfell . 10 % 

National Westminster 10 % 
Norwich General Trust 10 % 
P. S. Refcon & Co. ... 10 % 

Rossmlnstcr Ltd. 10 % 

Royal Bk. Canada Trust 10 % 
Schlesinger Limited ... 10 % ■ 

E. S- Schwab . 11{% 

Security Trust Co. Ltd. 11 'j 

Shenley Trust.11 % 

Standard Chartered ... 10 % 

Trade Dev. Bank .10 % 

Trustee Savings Bank 10 % 
Twentieth Century Bk. 11 % 
United Bank of Kuwait in % 
Whiteaway Laidlaw ... 10i^ 

Williams & Glyn’s. lfi'% 

Yorkshire Bank . 10 % 

Upnrtjcrs of the Accppcins Houses 

T-day dv*posits r*i. T-montli donosits 

* 7-il»- dpuosrt* on sums n t £ 10.000 
and under a>-„ up 10 SU.DOO 7i%. 
and over C 5 JKM "1 . 

: Cull doposlis over n.DM T-. 

Guinness Mahon. 10 % j Domaod dopniis 0 ^'-. 

Canadian Vickers lost 4 to CS33 **** «"* g* 

on lower first-half net profits but „t^in bbre^”* 

Royal Trust “A" were up 1 at Electric 5 cents to HKJ6.0a. 

CSI82 on higher earnings. - 

July | July 

IT 13 



IB7J2 18B.97 IBS.: 

1B7.B2 (ISi7i. 
188.62 118i7) 

182.99 (l£/2j 

Cotes Book Stores gained 15 
tn C$21 before being halted about 
mid-day, pending an announce¬ 


T0B0ST0 Composite*. 1 166-2)1188.41 11B8.r 1148.11 I16S.4I17/7) I 898.2tA\l) 

Golds, easier at first, became I joHAMKBSBUKD 


Ablnto l13-ft I 137? 

221* ’ 22i- 
4J5* 44 

2^5, 227ft 

21 : 21 
4.65 i 4.60 
57i E 1 573 b 

steadier towards tbe close with 
some counters regaining earlier 
losses following a higher London 
bullion fixing. 

irregularly Mining Financials were barely 
showed a tested, although Anglo American 
in quiet lost 6 cents to R5.S7. 
rerc some „__. __ _ 


lmluilrtftl 8S7.2 237.1 I 735.6 
252.2, 252.4 { 261.2 { 260.0 

287 Jl 117:7) 
252.4 <I7|7| 

183.0 (20,4) 
HI94 J (13/3* 

Industrials moved irregularly Minin 
again and Minings showed a tested _ 
downward tendency in quiet ] ost e’ceuts to R5.S7. Austraiili^ ooi.74 oms : scm« i «i.u s P &in «*«Wit»w- r iig» w», 

ste Jssjssi m . n-JTSiifS 

«°5un rs A a r h %i b.™,*-, «; u a sa \zs s ; : 

Wales coal mining concern to sign receded / cents to R4.35. G«inaiLV(:;» 800^ 7 »u3!bii:. 7 7&U.4 70° enew N YSE _ Owmaga - sti ^ 

up steaming coal contracts with The Industrial sector was mixed • • (iu/» <i7rai 4 

Kvushii of Janan with a firmer hinc Namnolc Holland <4U 84.4 , 84^* o7J> 7K0 _tfie »» MM«JW. ,. 

July *. Pw* • 1978 i 1978 
18 ! rloui 1 Htgli l Uiw 

July I Pre- 

ia I 

vlouft | Ulgli ! I fra* 

(On 10&37-1 KB. IP . 110.78 87 MS. 
i "J = (9(5) (17/3i * 

Switzerrdtf 29L7 .281J 27BM , 

«3/6) | (25.-4) 

I 6 I 4 I 16 
16 I lbl« 
4.20 14.20 

up steaming coal contracts with 
Kyushu, of Japan. 

Bellambi, up 20 cents at AS5.60 

receded 7 cents to R4.35. Otoilv(::i 800 J 

The Industrial sector was mixed 
with a firmer bias. Reed Narapak Holland <SH so 
gained 25 cents to R4.60 on „___j „ n - 

on some Overseas interest, was consideration of the results. 

Hong Eon^ 
Italy (hi 

1 : (Uj~ I tag) lofflcw and base dates (alt base valna 

800A' to*? 1 Hiy 7 I tiiDA ino extern NYSE A0 OommOT — 5ti 

' • (lurth 1 (17/iji Siandards-and Poors — 10 and Timm 

cu> 84 4 i 84 «• oTn i 7hj) 30M. Boo. the I hi named based on 18751. 

I ; 5^ I <4?i) 7 Exduomg botntt. two industrials.-. 

OOB 548*31! 657.22 ] &B&87 1 3W.44 ^ W li utt- W OtUUt^W Fimnca and 
jfiFy \ (bih j i Mill - Transport. (V) Sydney Ajl OnL 

(fa) 61.13 1 61.66 j 64^4 I iO,4o ---^:-' 


I ilBiTj i <4;lp) Ctaamse 

B ' 1349.62 1 344.63 i 262.U S««*» ClMir® «i 

«■ I ’ (t0;7) i (1/6) . _ ■ tf® ^ 

-———- Rowan ... 488.1M 33 — 

- Japan mi 435 .S 1 42b.26 425 . 56 .sham '^1 - 

1 (L 8 /T 11 c4,m . _ . 

NOTES: Overseas prices shown he low and/or serin issue, c Per share. I Francs. Sinsanore ; 3*9.62! 344.63 ; 262 .U Slows 

exclude * premium. Belgian dividends oGross, dlv. %, h Assumed dividend after ^ K ,/ft- I (t0;7) > (1/6) • * — trade 

are after vitbtaokltsg ux. scrip and-'or rights issue. V After local —:- - - Rowan ..-.488,100 

ft DM5U denom. unless otherwise stated, taxes. mTi tax free, n Francs: lndodua <)U Belgian SE Sl/12/83. Cl Cnoemuxen UAL.- * ..tflcjW 

yields based on ner dreirtenda plus tax. Vnilac die. pNotn. o Share spill. * Di* SB 1/1/73. «TT> Parts Bourse .1881: Southern .283,000 

V Pias.500 denotn. unless otherwise stated, and yield exclude special payment, l fndi- izzt Commerrbanlr Der„ iBjS iff) Anver. A/ne. .Virlines .221,100 

8 Kr.100 denom unless otherwise siaicd. rated dlv. n Unofficial trad ins. v Minority dam. Industrial 1970. (HI) Sang Sena Texaco . 209,100 

• Frs-Son denom. and Bearer shares holders only, u Mercer pending. ’Asked. Bank31/7/64 <l|]|) Milan2/1/73. in)Tokyo Uid. Technologies 30SJ5flit 

unless otbcrwme staled. SYenSDdennm. + Bid. {Traded, t Seller. ? Assumed u ew sb ft /iyta (h) Straits Times 1988. -Bliss ft LanshUn _ 207.900 

unless oiherwtse staled. X Price at time xrEx rudiis. xd Bx dividend. ’xcRx ici Closed irt> Madrid SE 30/047. Ralston Purina .-197,800 

Of suspension. a Florins. hSchltlinRS senp issue, xa Ex alL a Interim since Sloekhntm Induitrlai 1/1/38 it* Swiss Exxon .. 188.700 

e Cents, d Dividend after oendlnu riahls Increased. ■ Seine .1 . ..188500 







I “ OUJ i?* 

—k"> ■ 

-i * 

+ f • 

Price +or| Div.i 
llm. -It 

Fnce-; + *n- 
leu — * 

Uiv.lV irt. 

% ; i 

:+■ 01 
A.IM. S — 

, r vf/i^iu * - 

t — |Div. | % 

| Abt». 79.5 +0.5 — — AwhiUUM.| 3ic5 '—1 j X4 2.2 A(.MIL(to«*nil.10.64- 

Allwnr Venucli... 475m. 31-2.0-3 uunn .; 466 .1'12 .1.5 \cn*w .Vustiuila_! rO.«6 

BMW..250.0m-Z.D 2».0f b.6 *h»h*—.a.| 700 ; + 5 25. 1.8 .Mued.MrtB.-Tn1t- livL.Si; 12-15 

BASF-.-.132.5 J* +1.5*18.78. 7.1 L'huion -. 435 —15 ] 20: 2,5 \nirm Krplnrarlnn.--.i -fl-30 

Ihve.I«3.axr +1.9 18.76 7 0 dm \i|i.,n Fnni! 585 '-4 18' • .1.5' \„ lr ni retnueuin. -_i 10.83- 

Allwnr Vermeil...- 475m. 31-2. 3.3 (.Muon .* 

3ic5 '-1 

466 . 

AcwiuOl'. 1 1.03 '+u.,a''II.SS i" 

Hanoi il«, Bra/.i1„[ 1.97 |—'i.U 10.14)0.62 . 
10.86 1-HI.Ul ueiui Mincin'OF l_95 +0.03!O.QtU.*.4 .. 
12.13 :—». 9 .Vintr. OP..‘ 3.34 ;♦ 0.044.BtA,88 

-fl.30 1-0.04 Hcbwtmi- FI*..I 3.38 • 

10.83 - •-Pirelli:..1.4o -JdJ.fcJIUll 

tl.17 .4UI >nreCrux-UP...I 2.85 l+O.oaOJw'8.07 

11.24 I—** L'nipPK—.I 5.6a L +8.lflOlVVAAB 

+1.67 1 ..... 1 ' - W... H-v+PPI [- . 5d0.1B ! 14J7 

Uull UilLftoadB..) JO >4 I 281ft 

Hanker sid.Cun . 1 8 j 8 

Houuipei-i 41 ; 39 >2 

Heme Oil W- 42S 3 1 42** 

Hwlwm Ha.v Mnai 171ft ; 175* 
Hutiwm Bay.......] 225a 1 M 

HiMlaoiiOil & <>ar 45S* I 4BIg 

I.A.C.. Itflg ] 1<M* 

Imuui .. I 33 337ft 

Imperial UII-1 19 187ft 

lots...I JBl« I IBJft 

Haiei H'j.*.. a9D , + 2.0 128.12 4.8 ruji Flmr, .I 539 2 

Uever-Vemndft.. az3.0 -r 2.5! 18 2.0 Hita-lii. 2=2 i + 2 

•JUmI, 16U .. — | — H.ikI* M.Ui.rv_ 576 !+2 ■ 18 

Lornmetrhank- V31.3 + i.3 26.S8,11.5 HouacFiwI.-1.2C0 1—2 1 35 

V.hiI Gum mi-. 77.20,+04 1 — | - (.Inti. 240 —4- | 18 

daimier Ben/.;306.u«c. ♦ 4 d 28.12 +.6 im-Vokailn.1.460 1 —10 

Up^iiww .‘ «sa6.0 l + 3.5[ 17 3 3 Jftccv....■ 6o2 1 . 

Uenmg.; 160.0 + 2.0 : 14 | 4.4 .2.630 i+10 

15 \ 1.4 A+c»*. .UmenH*... tl.17 +0 

12 _ i 2.4 .Vviv.'-Fuii, Faj«r SL. 1 ' '11.24 | „ 

..•• -V.W ll'»- 1USBIIM. 

Ue^iumm.' 4p6.0 i + 3.5 i 17 3 3 Jvccv..' 6o3 1 . 15 

Uenag.; 160.0 + 2.0: 14 4.4 J.1.L.*2.630 j+ 10 t - 

lieutai he Bauk...' 3U4.9 +2.9 Za.12) 4.6 Kansai Elect Fw j 1.230 . .10 

Hmdner Bank....; 241.4+u.5 .'28.12 5.8 KnuMtau..I 340 

UvckerttnfT Zemi.] 2J2 i+7 ; 9.3fc 8.3 KiiDdu.. 281 

.. i.rm>«r.n rtn n.. 1 911^1 V'f17*19 9 Q . ** J .m a a- . 

UvckerttnfT Zemi.' 
Hi(sg Lim'd- . 



Hi.voch .— 

Horten-'............. | 

Ka.l uurt -4Ur_... 

, S tew. C«m. Imlustne-. 

*•3 Au-t-Koun-laikm InveM...., 

?* s \.n.i. : 

J- u And unco-. 

\ 11 -l. OH A Use......■ 

r - Barnhoo Creek Gukl. 

8«ie Meta) Iml.-.j 

_ 0 doucsunvilie Crt('F«—— 

2.7 brambles Industrie-.I 

1.40 •--J«iJ.6dftj»l ■ ■■ " . 

2.85 |+0.«®0-lS«a.07,--_- 
5.6» L +8.iflo:vt;«.4BaW30 

1.41 I- . SdO.lE'HJf «'»> v 

J1.07. I-QJI3 —Turnover: Craoa.Tta. "VolumL'“96.0m. ~ \'} 

11.50 1+41.02 Source: Rio de Janeiro SE. 11 

10.42 ;. 

t0.57 |HJ.O 
10.25 !-J.- 
tL14 I •,■■■ 

,*4-0j 05L0_ 

q m -An 7 : 19 9 q .. 1 . “r. onuuoie* imtuscne-. 

205.^.+0.7, 12|2.9*o-i.en«nilc....4.I6J +30 156 0.4 Broken Hill Pmpnehin 
126.0 +1.0 I W.Mi a .6 Uaisushita Ind_.. 742 ; + 9 : 20 j 1J BH 5oa>h ...I 

tl.52 -iu* 
11.72 -+8.81 

Kroner - J %)% 

292 i+5 Is 16.721 B.S MiraubiahlBank^i i/rt 
128.2 +2.2 ]lb.ih 7.3 Mitsubishi Heavy' 129 

l.fc Carlton Urmed Brewerv..-.! 

46.7)+ XJJ 4 4.3 MitauMabi CnrpJ 452 ;-6 

144.51 + 4.5 9.3b|3.2 MltMlI A Co.. J, 3k9 -3 

146.5 +1.0 14.011 4.8 MiiMiknalit. 6o2 ; + l 

32a.5;+5.0 >25.44] 3 6 Nifiprm Uenan,_,1,49* 

13 , 4.7 1C*. J. Coics... 

1.4 UaK (Sit.-.• 

14 * 2.1 Cock burn Cement..• 

20 I 1.7 crew. RnkiAelds A list.. 

tvauibw... 239.5+1.5 jl8.fl 3.9 Nlpjam bhiupan..' 693 

Kicv-aner UMUU.! 9 !.■,.+ \JZ i — .Mmu llntnn... 769 

M.iiitt re-• 24t a 1 24U 


Krupp..: 96.5+2.0! - 1 »uy*i Kieetri,*... 2-6 

Cin>le~.).■: ZBB.'J+s.oi 25 '4.6 iftwn Freiali.... 908 

Lowenbrau LOO....- l.a95!-5 ! 25 ' 9.U shiveirin... I.^Oj 

Uirtbaova.I 103.5' +J.3 i 9.ab| -..5 uny..1,670 

MAJ*.2t.6.0+4.5' 12:2.9 IbivIh, Uarm*. 244 

193.0' + 2.5 118.78] 4.9 Plntieer.. I. 8 O 0 

sauyi llHMtrii*... 
rekiBii, Freisi,.... 

Ni-mmia Miner... 30 I 297$ 
Nunen baerct..J la’s 164b 
N th 11 . Telft-nni...' 321ft: 32lft 
NllllMi Oil A liar 36*2 3618 

Uskiioort Petri n , 4.35 ! 4.3u 

15 J O.D Lon turner (Sh . 

JS ; ?'« kwinnc Itiotinto._.[ 

“3 t * t-'-onaui Australia.. 

w 9 * DiNikin Kubher iSI).!■ 

iv4o i-oci Uauu„....; . 93 1+1 « 9 M 

*1 20 Uorregasrtl_ 63.D0|-0J«! — - 

fi'n* Cmlitbank....^... ' lu6.B|+0.6| 11 : 9.4 

tiioi irfJM Kmma* -215 -; 20 ! 9.5 

t3 00 ' •v«n'U««N n i. 105 -ill (fv.S 

ra.uo , .v^hHyrtmio-j*. 182.0a-0.75* U S3 

t3l5 +005 ttorebimnd.- s. 85.5t+0. 57 |lQ.6 

t—Ol tfi.04 

11.25 . 

t3.l5 +0.05 

T 2 J 2 '- 0 .n» 

12 2.3 BM.UK... 

... ■ *■' 6Mer-einilli iib'iiim■ v■sssf■■■,I 

I’hl-ii tu Copper M m 2.20 ’ 2.22 

MA3 . 


Ueullljw -..J 

*luii,.*beiier l(ui-k| 
N ft.*kermann _.... 
I’rnitui! UM llW 

isisiiu Marine . 

40 ■ i'x l J ,l,l * lf| 6*—.---i 

77 7 “ I.»en. Frr.peitv Tniht. 

1 * ^.3 ilsiiiei"iev....'.... 

J® }'% rit»,*er ... 

30 u.7 h i .\urtn,!,,_ 

10 1 4.1 luier-c'oiiisw....-...... 

11 ' 1.1 Jeiimns- Inilu-mr*. 

. 0 3.6 I,,ilea (David,. ... 

b-wmri Oil...... 

1U 3.6 Met Mb Kx[.ir.iai*on_: 

“J 3. ; AIIM Holdi«itfv._...| 

166.0+3.7 'l/.ifi: 3.2 lake la I liemna 

232 !+ 1 
566 .*1 
150.3 +1.1 
126.0 + -.5 

I 10 > 3.2 * UK.2.t9 J i-30 

. 18 : 1.6 .. 1«3 .. 

• — I — i«kv, Mamie.* 500 +2 

— ' — Itikii*, b,eei IVh'i l.i 2 —20 

Hiteii 1 U'wi.b'l(i*.| 182.8 -0.8: 23 681 liaj-vMilrt:. 334 

rrfconug^... 277 +8 AH.12; +1 

■emeus. 290 6 --4.6 le * 3.B 

u i /.uckei .I 249 + 2 3b. at. a.3 

itiTf-en A.l».! 118.7+3.4 l/.lb 7.2 

JO-12; 1 inkyo sui'auin.. 

lo * M.8 l(ni. . 9.3 H'Vfta .. 

12.70 -0.02 JOHANNESBURG 
li:Ie ■ mink 

*0.95 . JulF 13 ■ ■' 

j2.30 . Anglo* American Corpn. ... 

12.60 __ Charier ConsoUdatL-d . 

tl.58 +0.01 East Drtefohteui _ 

12.35 +0.v3 Elsbnrs . .. 

10.74 i ..._ Harmony .... . 

12.25 1 Kmrnsft —.. 

JQ.27 j. KIo«' ..;.• 

f 1.15 !_ Rusronlws Platinum _ 

u 16 I_ SL Bdcna .... l+a .112 6o“h> Vaal --•--- 

-0.02 I t+bld . Fields SA 24.13 

12.22 !+•!.• 2 L Union Corporation 


V Kb.t. 

v eremaA WemUk 
Vuikaa-ascn — I 

174 t1 ■ 

129.5 +2.0, 

290 +1 

231.5 +3.0 

14 | 4.U 1 
12 4.6> 
18 3.1 i 

Source N'lfcftn Seeuriues. Tokyo 

^ I Hya !.' 11.71 1+0.0) ^D^erred- 



Niefaiftiu) Inl^TQsrlrHw)......; 

N'Jitli Hr>,kenB'dines thtt-j 

unkls-klee _ 

Oil besreh___ 

Due* Bsploiaiam ... ' 

Z"l tSJS ;t-0-lS j BlTToanjlLzlcht 

Eaitt Rand Pty. 

tl36' +Wn F ’ rce S** 1 ® CednM ..- 31 M 

: * I.. PmolnM RnAi) UK 

11.80 -0.06 
1U.14* j. 

Prvo : + nr I Frv.iYM. I^*" dbw C+rucrere-! 

. President Brand-- 

President Stern'.—J_;> 

SUUontt-ln __ 

Welfcom ..-- 


Price ■ *f nr; DieT 1 
Fi». — i . 

Annul .I 11.6.0+0.8 : «28 5 3 •**. ru 

Vkro iFi.SO, .i 29.2 — J.l ' — ' . .. ”0 ^tn 

A * 1(0111 Bnki Ki.'iX*! 384.0 —0.5 1 23.5* 7.8 5* ..— 

AMKV (K,.ldi... 83.0 +0.2 : 3. I o .0 - 

A'l'WMk 1 Ft.■*.»! 7o.O —0.1 * U34r', ais, ,‘‘“ C J* .o 

dijenfeon.j 93.5—O 8 I 26 1 0.5 t ? ,u,lll ? * v ** 111 . 

■kikaWml’niiFGi* 119.2 + 0 .n ■ 82*1 6 v Oevaeri. 

Uubrm Teriinrie' 70.7 +v.2' XP i 7 J .f.375 

««vwrV l F.J fl U,.| 279 ; + 3 ! ffj H . 

annuiN.l JJ*mrer ii 3.5 .J 57>1 a o nimnetUmk.^6,850 

BuroComT-tiKuul bt ).2 . 1 94jJ s'i lm Ko>a r Beiac-jS.iOO 

Jl*rtBrr«auieoiKlCl,: 36 i 20 I 5 6 ^ ,n ‘2.620 

Helneken(Fi^ 6 )J lu3.2 —u .6 ! 14 ! b!* Peirofi™.:3.795 

An*i..2.400 -5 . - - 

* 1 . 6t^ Laiaik...*1.500 -25 1 72 ! 4.8 

ifcfknrl -H".2.000 +25 *116 1 5.8 

L'.B.K.CempiiL...*!. 70 -lj '100 I 8.6 

Ovkerio.. 450 *+7 ! — i - 

t6b.".... 2.c50 |+ 10 jl77 j 7.9 

_ N,ft i * Heck III .t Cot man- 1 

_ u. c. sieujh .. ; 

_5 ; «_ ! _ anutbUnd Uiniiu*-- 

—25 ' 72 ! 4.8 >I«W* Eapwniiiijii-j 

+ 25 ‘116 1 5.8 ‘V***' ; 

-lo '100 I 8.6 li-il'""'-.','.'IT.1 

+ 7 * _ r _ Heal era Minina < 5,1 eenis, 

tl.54 1-0.01 * kelB< “ n .——-— ■=>* J rt 

*3 05 ! West Driofontein .. WJ5 

10 76 '+ i Ii* WMtern 8ol«UdS» —-133 JO 

to!44 1 - 0 I 01 WMleni Deep .. 1S.D0 

to.3 3 ,-P.m 


ri- 9 ® d'S? AE 13 -.-_ 3.93 

It'Ic I 4 , k An*do-Amer. industrial ... 10.40 
iJ-fS Bartow Rand ___ 4.07 

....6.660 :+50 4a0 ; 6.J P adic 

lAiUnque ... +56 170 I 6.1 

..^.1_L 1 .'?! b.. CNA Investraenla 

di^nfcnn.j 93.5—0 8 

dnkat\e»t'n*»iKiCi' 119.2 +0.a 
Uubrm Tetlenale* 70.7+v.2 
Blaevier V lF,JaJ)*| 279 ; + S 

bnnia N. t JJearer I 33.5 . 

BuroCoinT-tiKnul 6».2 .. 

01*4 leoiKllllj 36 .. 

Helnekeii (Fi JjCj.j 103.2—0.6 

0.0.1 lino Bin.2,2*30 |—5 llAv c.8 

Lievueri...'1,310 ;+8 Bb ■ 6 

Hcft.-ken.2.375 1—20 |17+* | 7.2 

iniHrvnm._...i 1.760 1 + 5 .14*2 • 8.1 

Carrie Finance ... 

Dc Been Industrial . 

Frlev ■ + m: Div.|V , Edga« ConsolKUtcd Inv_.. 

Ft. - J r«v. * Edgars SWres . 

_.'_|_. Ever Ready SA . 

743.0-+2.E 4tf"o.6* Federale* Vplkabitogginfft.. 

- 0.10 

:: tec 

riietiiettonfc.^6,850 1+20 '*90 I +.- \rr«,i ie rurt+’r"'i’v 426.0—2!5!i Uii s!o I Greatermans Stores 

U Ko>» r Beui>*..]5,«0O 1—60 io25 a.7 L*,itn .. t20 

rtin Honllniu..2.620 |.!i!LiSr 2,u .Cqu.tainr_ 642 

Feirohna._....;3.795 j.........; I /4 | 4.6 ell! „■. 4»4 

153.*b I 6.2 
47.9+0.1 19 7.9 

33-3**+0-3 12.5 3.6 ,.i*h gaz 

1 2 2 -t--'2 S?-S’7 i-SfiETuSrj 726 

-?^*?.—0 ? a * I B-t vioJiKj Montanue* 1.480 

dc«R..iveu»(Fl.aj 5 .* aa .3 *,..3 > _ r _ 
diuiter tMFI.UX)); 25^;+0.4 12 I 4.6 

K.L.M. (Fl.liAfl... ! Ib3.*'.._. b 6.2 

lot. Moli+nlaji^J 47.9+0.1 19 7.9 

Xaarden (KL10i...J 35^+ 0.3 12 . 5 ) 3.6 

N«t.N«,iliia.iFllu • 102.4— ..7 48 4.7 
AedCred BluFIJUJ 5^.2— 0.6 21 i 8.1 
N+lllnlBkiFI jdft 198.21—0.4 22 I a .6 

• •cciFI.BOi- 1 155.2—1.3 I 36 4.6 

iMUmmrra...,i 140.5— j.« i — — 

PrtktHfed iFi.kfi). 37^+ 0 . 61 - - 

Philips iFI. W 1 ....I 25.9 .. 17 6.5 

I/Aibeli I'enn.hJO)' 7o.O— j.Z , — — 

riuhevo,FtJUk.../ 173.6+0.4 ABfit; 7.4 
itulinco (FI. POi.-.i 134 0+0.5 — : — J 
■3ft+flM<FI. rth.. ; 1^3.1 .*9.3, 3.7 | 

UitaiLhneb'KI.-'ii 1;4.0 -0.2 jo./ a: ox 

■Mveubura.; x42 +2 2U , 7.9 

•teeintiipiKi,-\*i i.4.0+J.7. c'U\ +.1 

Cukyi.n. 1 *. Hi ,-.H 13*..5 .JilLio! ..5 

L-nilrvtT iFl.kZL',.; lo 1.9-0.3 +2. * 7.v 

Feirohna._,... 13.795 

our Oeu 2btuuue.Ji2.9S6 
roe (ieo Beicii|iielJL946 

t20 ,+4 
642 +5 

+10 <203 ; b.y oouj*ging,.„_.j u« 9 +5 


.. 13.495 

*55 7 - Z 4. .Si. Gertas..-. 649 l-b 

+ 30 ;315 e.t Uwmaiir...'.'.1,6*8 - -1 

+ 35 ,!«»(• S.4 C.C.K.. 3e2 ?_4 

I’mutioa bi**l-12.525 |—IS 17u . 6.7 t.l.T. A«aV'„... 1,050 

16±! a.3 Goardian Assurance (SA). 

iH.3b\ 4.8 Botetts . 

16..6 2.8 •—.- 

40 4 5 McCarthy Rodway. 

qnft 7 ^ Ned Bank .. 

7 a 4 u OK Bazaars _..._ 

31A 8.7 Premier Milling .*... 

+ ® i — j - Lielmnoiire.339 '+1 

u.uid.<liui .| no i—a | ou | 6.9 Club 31*1 Her...._i 485 ! + 2 |IIJ2b<&.6 aames rropenies ... 

idne ll oniaenc1.480 ,+ B — | — (.‘rwlli Com Fr'ct la6J»'_OJ : 12 ! 9.8 Rembrandt Croup -- 

| 31-ut O.f 

I I 2 I 6.o Holdings__ 

jll_*bl 2.8 Hand Mines Prooertiea 

Pretoria Cement_ *333 


Fathom iFl.aj). 

philips iFI. W 1 >..I 
i/jobeh Certn.UJ|( 
ihilmco iKijoi.....; 


? I+otj lliw. VM. |metal .• 

j Fra. i — a. % J 4 *»|ii» 

! '. Ltlarge . ! 

Crenaot bum._, 71^ -0.a 1 — — -- 

Oumez. 767*1—2 ^4.4 S*** Holdings- 

Fr. Pei role...1S1.S —3.1 *14.10 10.8 -L.'iv'i. ... 

Uea. Umi>1enta.f| 192.5 +0.8 1 8.2a; 4.a C. c * ~° 1 T J S ° gar 

^o*. ' JSA Breweries .—. 1.43 

°' t 9 - a |Tkger Oats and Nat. Mill*. 10..V) 

I UltLl 

Weblia n’i J 11 .. Bui ibl 

41.2 +0.7 50.Zt K*rtr. 1 ««U .1790 

395 -1 * 33 > 4.0 *r*V lu, - U 1 ''=° 

\iuniiniiiifi.'1.260 , 8 

BBC*A.*1.650 '-5 . lu 

Ciim ijui+i'Fi .uii* 1.120 ; + 5 31 

I hi. Fan. UTL; 830 ' . 32 

Lbs bea...-.' 590 i + 3 | 3Z 

Cttkiii ..2.170 lo ; 

Kies-tron at I- 1.790 1+40 | to ' 

r'lH-Iiet (lit-*.Hue. 1 ., 685 i + 5 .* o : 

BirfTnituil’t I'm.*.. 70.5J0,-500o5u ; 

Us i?nmi,|.7.+25 50 !-55 i 

liivAeio/ai u A Ann . nc + m ■ 


WS 1+9 ; —: — Unlace .1. l!2J 49, 

ii? ■—a * I'o'. Securities-Rand U5.S0.G8J 

'if;(Dlseonnt of 402%) 

-'—•*■*». i^e^ + u.a* J 1 iul rn«|M ftf 

iUrt/ia*.1?6.5*;.-1.6 jl’. s li.5( 5PA,r * w 

t'e, hmev.—...i e8J3i-0.6 < 7.6‘ b.S ju]y js - 

Feriim-Ui «nl.—' 273.8 + 1.3 ,7.5, 2.71 . c i, nrt ' . . 

I l.t I I. n "■*! .. 

'. ; f 7 Shiner.-*..i 

17 .. lllu rv.-. T.o u.4 July is . Per cent 

5 Z ftmuai-aiwnl.-.! 273.^ +1.3 .7.5; 2.7 4Q „ nrf ' . . . . 

I'enwot^itroen.' 409.S—2 J ; 17.25 4. s d Banen BUhao.3M 

0.8 l-.fdaiu .......! 3 i2.3-1.o I -I- S52 ™ 


I iitorlne<i 8......... 4,000 -2S j 21 2.b Uaniu-l^Lnlquej WT-.J 30 1 6.1 

■fc mi-lirh,. |)A»i. .1.420 i... ..1 Ml j i.o Kfinote..“l*’ 533 -20 30 ! 

Price | + or: Div7 Yui. 

K mner | — I *i, ! -* 

,\e4«iFr. I*\V.. 3.400 —30 ina.&l 2.5 

IN+ Hep.2.250 . + 5 Irtj5.fl 3.8 

{.A'r'ifi'ftiB. '2.565 :-S { IS | 1.5 

Fiivin slP(K iiW.! a»8 .. Ifl ' a.2 

Banco Atlanuco 0.000? 

Banco Central . . 


“1 W6S=d issfeiail ssSS:*?? 

Adrtelslviakeii.-.j 134 ;_i ll ■ w y 1 *«ir1n/»Fr.hnUi..,i5.B75 ‘—15 : 26 

T“ 'if* .-■■»•—I J]! l+ 5 .*86,5 9.3 Banco Trid r»i. c 1.000) 

752 | + 12 1 26A* 6.4 b Irid MsdltHTanoo 
2.7 ihojiwun Brendt.] 16.1U 7J Banco 'i ^Jr 

1 dermeut er W_.;* 434 

Ifci. Fart-Cert*,..! 475 '-5 

Usn^keUinli.j 1Z2S*.12 ; g y I fH'in-li+r ‘.t FIlH; 

fc>A>lAitstl Co.I 1635 t +iu ! 12 17 '.i 

Fl n a iab anlten.. 1291 b*+1 13 10 0 

nyRuener.. 370l 2 +1 3 j 12 1 3.2 

Fcr. lW.! 77 J 4 -V ■ - j - 

rty-Rgener.. 370lj + lj 

Per. Fapir.| 77i*.— S 4 - 

UandeLslmuk123a«:... „.. 
Lr.N'tb’n H.iKrtC", 283** + i» 

Aont luihe*. 193** — i* 

Uilehmnk... 7Bv...—.. 

Fmvrbank....,. 139 1 . 

12 7 3 u'/er LHf'r, lOuj; os5 —3 [ 14 a.9 

13 110 o' w »«4»r fF^gOl..’ 840 ;. 10.4.2 

12 3 a i *»' Bn 11 - F.lJC. 1 373 ;-2 10 i 2.7 

_ _ “>s" 'i:eiFiacU-..4.775 -25 i <U1 8.1 

13 8.9 L'nhm Bank-3.085 ;-16 1 20 3.3 

12 ! 41 Zurich ,nP .jll.fflM ' + 30ff 44 1 2 JO 

...I 12 | 3.9 vainor....j 

..J 10 ! Ill STOCKHOLM 

j h'mae J — 

+ or i Lnv.iY. 1 . 

. . 12 I 6.2 

Uitetannk. 7Bv...-. — — 

Fnvarbanu. 139 1 . — 83 

FRwimlwnlc. I36U|.] u ■ a . x MILAN 

hoph. Baeortn....* 409 —5 I 12 , 2.9 _ 

-uperiot.| 179 1. 12 6.? • 

NUAAblMXUi-; 232 '—1 1 
ku« (jtvx,B<hm.| 150 +2 I 

ktK4(lkrJX>).i 87 J +U.5 I 

Lima I'npcniKrfirj 130 -*..:.| 

bmeiiBi. 64^m —1.0 

biVUf"_— .! 116 :+l 

-into..J 197 |-2 

.ellnliN, . j 239 ‘—I 

Kim’liiN'B’iKiCL 151 [+4 
Srw+Hxi 146 I. 

| Fnec +ar'L)iv. 

1 — J |jre* 



iKaltfCI- , I 

Flit . 1 

Banco Papular _ 

Banco Santander <3501 
Banco Uroullo iLBOOj . 

Banco VUcaya -•.. 

Banco Zarazoxano_ 

Banlcunlnn __ 

Banns Andaluda . 

Babcock Wilcox __ 

CTC ...' 

? 1 1 £ Draxadiw 

t ■ •?/ Imnntenlf __ 

4 I a'I k * I. Araarmesas 
2 ■, "•* Espannla Zlftc ' . 

197 1-2 

On. I'm.[ 

i-inii'lei .! 

; 1 ; _ I __ oieci IIIN-B |I\T?L 

437 I -7 ' Krewrtm'h'fhrSk 

1,721—29 : loO* 8.7 bwelte “B"_ 

1.440 -28 IS- 10.4 Fiaeref.j 

1b 7 ,*^2 — | — Grimeddreei..... 

239 '—I 
151 [ + 4* 

1 __ ^ _ “Wiimo unit* .tw...,. 

5'* BxpL Rio Tinia'-.._ 

! “'"J F«aa a.SWi 

i J® 9 i .FenittA il.fl»> 

1 8-6 : tial Prerfndns . 

300 2 

105 +6 

Unii-cinenii .! 11,030 —180 600' 5,4 I Han.lle«h*nlmi..., 362 1+2 

l‘irilu*n.*(i It .* 34 2 

I’ernffiM- r .. 1 305 

ie>, cl* ....I 616 

"eni(«Tt.j 91 

■Irvr Uumiftt ...* 220 
v>ir Wagne-ir....! 220 

ItHlaider..236.75 +O SO — ' — Mxrebou.. J 

U(ri|n , <iiiw,„ im . 1 43, jIXJ, -. . ...; 3.6 M*> Ltcb Umyiaw..' 

... *. o D “C"'" , 'i'at...,».. • ... i.aiHj* a.' 

S'" i % ..J 145 I-2.7S _ . _ 

Olivetti 1M»,..., *969 | + 4 ' — ! — 
_i Pirelli Jt Uu. .....j 1.590 I—IS 130 8. 

— ' — Ms r* bon.. ..J 103 

.200; 3.6 M*> Ltcb Umyiain..' 61 

— * — swvIviL A.H_J 260 

— i — S.K.V. 'B' Kra... 73. 
130. 8.1 rtiamri Kcskllria...! 164 

nan ,.I h, < r Ftr^ui Spu-—-_[ 94 1 j-2 I 80' 8.5 ran.tirik -H’ Kite 

Sun ■ *■■■■ m!** Snui X'laeoaa .— 713 !-10 --n*lrteh.i:in.J 

61 ‘.-1 — 
260 1—3 5.7! 

73,fij—1_Q 4.6 
164 +4 8 

73.5 1 —0.6 5 

**-* ^- a j Ga^ PrecfadiM . 

• 0 *-4 Gnmo -Volaztncx 
9.6 j 2.7- J* 1 *™ 1 * ■’.•*■■.*■;■ 

J | _ Ola it* ... 

16 14.5 PSPrtirai Rfumdas ... 

O 1 7 U Petrallber .. 

s ■ 7 - B Pwroieov - 

5 751 2.2 Sarrio . Papalera 

5.75) Z.2 Snjaca _ 

V.jlvn |Kr. Wj.[ 

59.5;+0.5 l v— j - 

a.' dft JUHL'UM -:— 

c ! Z'2 Tefcfanlca ......_ 

3 I °- a Turrai Roatench __L 

^ 1 r'ft Tubace* '..«^ M .^ 4 *' 
Urinn. Elec. _ 





’-U" ■’ 


: -i- 




- 1 




.-3 ■ 


- 3 


+ 2;. 



-l - - 



mm . V 

82 .. 

— _ 

.285 . 

+ 5' 





• —. 


- 2 . 



. mmm - 


' ' — 


- ' — 


+ 1 


+ - 

113 - 

\+* - 


- — 




- * 


— z 

07 . 


.320 *• 

- m -r 

. M2S. 

,-:«5 : 


■ - _ 


• +47»75. 

■T*W - f 

- ~i 


f • ■ 

Tim es Wednesday July 19 1978 


A case for the Monopolies Commission? 


IVEN THE current politically 
nsttlve climate 0D rood prices 
id me Government’s attitude 

n-ards mergers of large com- 

“p» y 1 * Imperial Group's bid For J. B. Eastwood 
ipcars lo be a prime candi- 
He for a Monopolies Commis- 
on investigation. 

Using Imperial's own 
?ures. a merger of the two 
. smesses would give the com- 
ineri groups a 32 pe r cent 
wre of the UK broiler 
ncken market — although 
dependent industry sourees 
1Ws fi sure could be 

Ightly higher. 

Under current monopoly 
g (station, an Investigation can 
triggered if a merger gives 
■e groups involved a com¬ 
ined market share oi 25 per 
•nt or more. 

A deal between the two 
. roups would also give them a 
jbstantial share of the egg 

and turkey markets, indepen¬ 
dent industry sources estimate 
that Eastwoods and Imps, com¬ 
bined share of the egg market 
would approach IB per cent, 
although Imps’ own figure is 
substantially lower at about 
12 per cent. 

The independent sources say, 
however, that the current UK 
commercial market for eggs is 
about 650,000 boxes a week and 
that only last year Eastwood— 
the market leader—was plan¬ 
ning to raise its egg production 
from about 68,000 boxes a week 
lo 90,000. Even if the group fell 
short or this target it seems 
likely that its market share Is 
currently still about 11 per 

Imps says that a merger 
would give the groups a com¬ 
bined share of the turkey 
market of about 18- per cent— 
although here again industry 
sources put the figure slightly 

German cocoa 
demand surprise 


CWS OF a sharp rise in West 
rman second quarter cocoa 
an usage took cocoa dealers 
surprise yesterday. 

A modest cut in grindings had 
s en forecast with most dealers 
peeling the Aprii-June total to 
about five per cent below the 
urc • for the corresponding 
riod last year. But the actual 
ure. announced by the West 
-rman Confectionery Associa¬ 
te was 34.724 tonnes. 7.5 per 
nt higher than last year. • 
There was little reaction on 
? futures market, however, 
ptember delivery cocoa 
mbed more than £30 to £1.768 
tonne sonn after the London 
enlng but this mainlv reflected 
;haro rise in New York prices 

The underlying “ bearish" 
irket tone was quickly 
-established, possibly en¬ 

couraged by Paterson, Simons 
and Ewart’s forecast of a continu¬ 
ing world surplus, and by the 
close September cocoa was 
quoted at £1,727.5 a tonne, down 
£7 on the day 

The West German grindings 
figure completes the second 
quarter demand picture. Follow¬ 
ing cuts of 18J per cent in the 
U.S. and 7.3 per cent <n the-UK 
a net decline in world consump¬ 
tion is -indicated. But this 
decline is no worse than was 
forecast and the effect on the 
market has therefore been fairly 

Most dealers seem to take the 
view that prices still have not 
fallen sufficiently to match con¬ 
sumption to production and while 
surplus supplies continue to over¬ 
hang the market prospects for a 
recovery in prices remain slim. 

Coffee fears discounted 


l A Z1 LI AN WEATHER pros- The renewed nervousness was 
cts continued to dominate the encouraged by a Brazilian 
-ffec futures market yesterday. Federai Government weather 

report, but weather office 
?nd. ncarbv prices surged £50 sources said in a later report 
cher during the morning in that there was little immediate 
spun so tu reports that a new danger of frost. The market 
Id front was threatening the responded by resuming itsdown- 
iTec regions. ward course. 

higher at about 20 per cent. 

Although the market shares 
<□ turkeys and eggs are not 

sufficiently high to constitute 
a reference to the Monopolies 
Commission, they will cer¬ 
tainly add weight to the 
argument that there should be 
an investigation. 

Imps, however, is already 
arguing that the Commission 
should not be brought in. 

it says there are strong 
competitive forces Inside the 
industry and at the retailing 
end which would prevent the 
merged groups from attaining 
a dominant position. 

A spokesman for Imps said: 
“Apart from ourselves there 
are another nine large pro¬ 
ducer companies In the broiler 
industry with market shares 
ranging from 7.8 per cent to 
1-8 per cent. Two of these 
companies are controlled by 
major groups—Unilever and 

wool sales 

SYDNEY, July 18. 
WOOL SALES at Australian 
auctions fell to 3.29m bales in 
tbe 1977-78 season (ended June 
30) from 3.46m. in 1976-77, the 
National Council of Wool Selling 
Brokers announced here. 

This is the lowest total since 
the 1949-50 season and compares 
with the record 5.60m bales sold 
in 1969-70. 

Total proceeds, however, rose 
to AS945.06m from AS939.74m 
reflecting a rise in average greasy 
price per kilo to 187.14 cents 
from 182.73 and in weight per 
bale to 153.7 kUos from 148.59. 

Woo) unsold in store at tbe 
end of June totalled 80,032 bales, 
against 129.075 a year earlier, 
the Council said. 

Total receipts into store in the 
season amounted to 3J37m bales 
(3.59m last year), including 
carry-over and wool received forj 
re-sale, of which 3.17m (328m) 
came from tbe season’s clip. 

Bales shipped abroad for sale 
came to 2,197 against 3,607 in 

Sales in June totalled 203,347 
bales (208.409 in June 1977) at 
an average price of 18L00 cents 
(170.01) per kilo greasy for total 
proceeds A$58.03m (AS54.1Sm). 

Commenting on the season, the 
National Cquncil said that in the 
first seven months tbe market 
wag quiet with prices close to 
’mmimum'support levels. 

Courtanlds. In addition there 
are a large number of smell 
operators controlling around 
29 per cent of the market." 

Imps also make great play of 
competitive forces prevailing 
at the retail end of the busi¬ 
ness—particularly since the 
start of the supermarket priee 

Imps says: “There is little 
brand loyalty. In fact, most 
of the chickens sold in super¬ 
markets are under own-brand 
labels. The climate is such— 
particularly in time of a glut— 
that the retailers are in a 
strong position to control 
profit margins." 

Imps’ offer of 160p a share 
is 21 per cent, higher than (he 
I32p a share bid by Cargill. 
This privately owned U.S. 
agricultural merchants Is one 
of the world's largest grain 
traders, with annua! sales of 
more than 9I0bn. <£5.4bn.) 

Cargill said yesterday it bad 
not yet reached a decision on 
whether It would now make a 
new offer. 

Imps Is lUtcly to make use 
of the argument that Cargill — 
if it succeeded — would sopply 
its animal feed to Eastwood 
while, if the group remained 
in British hands, it would 
take its feed from borne sources 
— to the benefit or the trade 

Imps Is not looking only at 
the economy of scale that 
would result from the merger. 
It also sees great benefits from 
its poultry-breeding business. 
Last year Imps exported about 
L4m birds. 

A spokesman said: “This is 
a highly competitive market, 
particularly in tbe U.S. A 
merger with Eastwood would 
have substantial benefits and 
greatly increase the genetic 
breeding stock. 

Public says 6 no 5 
to Labour plans 
for land takeover 


MORE THAN 70 per cent of the 
British public oppose the plans 
of the Labour Party’s National 
Executive for a state takeover of 
tbe land, tbe Country Land- 
owners’ Association (CLA) 
announced yesterday. 

And 65 per cent claimed that 
nationalisation of agricultural 
land would mar tbe beauty of the 

The strength of public opposi¬ 
tion was judged from results 
gathered by the British Market 
Research Bnerau through extra 
questions added to its regular 
sampling of 2,000 consumers. 

One of tbe most striking 
results of the survey, the CLA 
sud, was that only 10 per cent 
of the people questioned knew 
of the Labour Party NEC’s pro¬ 
posals for land nationalisation. 

“Radical proposals to trans¬ 
form society can be adopted as 
a major party’s policy without 
the public knowing what is 
happening.” the association 

Of the people Interviewed.'73 
per cent were against state 
acquisition of agricultural land 
and 72 per cent thought it was 
important for a free society that 
agricultural land should be 
privately owned. 

Although only 45 per cent dis- 
approved of an annual tax on 

wealth, the number against a 
wealth tax went up to 72 per cent 
if it meant that a landowner had 
to part witb land to the state to' 
pay the tax. 

“Forty-six per cent believed 
that land nationalisation would 
make it more likely that owner-, 
occupied housing would be 
nationalised,*' the CLA added. 

“This is an important reaction 
in view of the NEC’s statement 
that tbe acquisition of agricul¬ 
tural land represents a * vital first 
step ’ towards the public owner¬ 
ship of all land.” 

Tlie poll was evidently commis¬ 
sioned to provide a backdrop 
against which tbe results of the 
Government’s own survey on land 
ownership may be viewed. 

Lord North field, acting under 
instructions from Mr. John 
SiJkin, Minister of Agriculture, 
is now concluding his assessment 
of bow the pattern of land 
ownership and tenancy has 
changed in recent years. His 
report should be published later 
this year. 

Mr. Silkin himself has referred 
to Lord Northfield’s efforts as 
possibly the most thoroughgoing 
examination “since the Dooms¬ 
day Book.” 

Written evidence has been 
taken from almost 100 organisa¬ 
tions and individuals. 

Sugar at 
lowest for 
five years 

By Our Own Correspondent 

THE LONDON daily price for 
raw sugar was set at its lowest 
level for five years yesterday. It, 
was cut £1.50 to £83-50 a tonne.! 
and traders warned that any I 
attempts to bolster the market I 
by political means would result 
only io further price reductions. | 
The October futures price on: 
tbe terminal market lost £1.35 
on tbe day. closing at £85AO a 

Tbe Interntaional Sugar Agree¬ 
ment’s executive council is due 
to meet today to discuss whether 
to call a full council meeting or 
tbe association, which in turn 
would propose tactics to deal 
with the continuing slide in 
world sugar prices. 

The London daily price has 
dropped £23.50 a tonne since tbe 
beginning of this year. 

One London trader said an ISA 
council meeting would be “silly, 
it will only damage tbe market 
further.” be commented. 

Trade yesterday morning was 
largely influenced by a Peruvian 
sale to a U.S. operator of 24,000 
tonnes of raws for shipment ini 
February. Further downward, 
pressure on prices came later 
in the day from the impending 
Colombian selling tender for 
12,000 tonnes of raws. 

U.S. sugar, ' 
meat policies 

terday's National Com Growers 
Association meeting here that 
the Carter Administration’s 
policies on sugar imports were 
costing farmers from six to 
seven cents a bushel on their 

“ They imported a million 
pounds of raw sugar that 1 
replaced maize sweetener that 
could have been made from 60m 
bushels of your maize,” Mr 
Dole said. 

Foreign sugar being imported 
below the cost of production 
came at the expense of sugar 
beet and sugar cane farmers, he 

Mr. Dole also cited meat 
imports as ' a problem that 
affected the price of maize. “ The 
unfortunate decision bv Presi¬ 
dent Carter to raise beef imports 
will have a negative effect on 
maize prices.” he said. 

“We are not going to have a 
feed grain industrv on a strong 
orofitable level until we have a 
healthy meat industrv. To ex* 
oand oroduction. a cattleman will 
have to see orosoects of a profit 
for three years.” 


Pea growers 
to seek big 
price rises 


PEAS PICKED and processed 
only a couple of weeks ago at the 
beginning of this year’s harvest 
campaign are already being 
offered for sale in supermarkets. 

Stocks of last year’s crop were 
extremely low by the lime this 
season's peas were fit. and the 
late start to barvesting, caused 
by tbe cold spring and summer, 
led to some processors running 
out of supplies during June. 

On tbe face of it ibis left the 
processed pea industry in a very 
healthy position. Cold stores 
were cleared ready to receive 
this year’s crop, tbe continuation 
of expensive storage of old stock 
was avoided and tbe total 
income and profit from last year’s 
expenditure was recovered wilbin 
the 12 -month farming cycle. 

Tbe actual situation, however, 
is not quite that simple. Last 
year’s processed pea harvest was 
a good one and processors ended 
the season witb well-stocked 
stores. But fresh vegetables had 
seldom been so plentiful as they 
were last winter, in good quality 
at low prices. 

Shoppers witb budgets limited 
by economic restrictions such as 
tbe Government pay guidelines 
decided to economise and 
plumped for cheapness ratber 
than convenience. Sales of pro¬ 
cessed vegetables slumped and 
it seemed certain (hat tbere 
would be a big carryover of peas 
into the following season. 

Processors reacted predictably. 
In January and February during 
negotiations with pea growers 
they imposed cuts in the contract 
acreage to be planted in March 
and April. Averaged over all 
companies, the cuts amounted to 
a 12 per cent reduction on the 
previous year although the big¬ 
gest processors. Birds Eye, Fin- 
dus and Ross, cut their crops by 
14 per cent 


At the same negotiations tbe 
major processors refused to raise 
the ex-fann price of peas or pay¬ 
ments for harvesting and deliver¬ 
ing crops to processing factories. 

Growers were told they mast 
accept what amounted to a reduc¬ 
tion in real income, when cost 
inflation was taken into account, 
to allow the processing side of 
the industry to recover from the 
disastrous drop in sales. 

However, the cold spring which 
delayed the development of this 
year’s pea crop also affected the 

availability of fresh vegetables. 
Supplies ' "came short and prices 
rose as cold spring turned into 
cold, wet summer and sales of 
processed products took off. 

By mid-June, as 1 have already 
indicated, most processors were 
scraping tbe bottom of tbeir cold 
stores to fulfil orders super¬ 
markets and :he pea harvest 
came only just in tim.* 

Meanwhile, about a third of 
the 1978 green pea harvest has 
been completed. Yields from 
early crops wore disappointing 
at 15 per cent to 20 per cent 
below average in most areas, hut 
recent warmer drier weather has 
already improved prospects for 
later plantings and tonnages 
have begun lo impriv- to make 
up some of tbe deficiency. 


Green beans, which are to some 
extent interchangeable with peas 
in freezer cabinets, have also 
suffered from the cold weather 
and. although the harvesting of 
them will nor begin until mid- 
August. present yield prospects 
look poor indeed. 

Sales patlems. ihe availability 
of fresh vegetables and so on 
will all have a bearing on the 
situation of roii'ie. and the pos¬ 
sible shorta-e in the shops may 
not occur. But farmers who con¬ 
sider themself er. to have been 
exploded by the big processors 
are already expecting a much- 
enhanced bargain! position 
from which lo argue next year's 

Farmers’ det- ‘niination to 
negotiate sizeable increases is 
reinforced by the fact that many 
are faced with imminent replace¬ 
ment of tbeir pea-harvesting 
equipment. New generation 
green pea threshers have ‘re¬ 
cently become available whose 
performance and efficiency are a 
significant improvement on the 
older machines. 

However, the new machi nes 
cost about £60.000 each this 
year and it has already been 
hinted that the price may be 
closer to £70.000 next season. 
Faced wilh such a massive out¬ 
lay for machines which work for 
only five or six weeks a season, 
farmers are unlikely to be satis¬ 
fied with the usual six-year con¬ 
tract lo grow, which contains no 
guarantee that pea prices or 
operating costs will keep up wilh 


tt ACC B/IETTAl Q Amalgamated Metal Tradins rcooned London forward metal started at £6.465. decline. At tbe dose ralnra were on- trade was seen. The market dosed ported Produce: Oranges—S. African: iKILfc. Lfcl Alvlj to 

DAdC, Jri £ 1 1 ALJ ihai lt> ihe morning casta win-bars traded Despite hedge selling same fresh buyiiut chanced to £10 lower on die day. unchanged in 10 lower on barley and Navels 4-UD-5.00; Brazilian: * am 

DAJl JtAeL 1 ALj ihai iu ihe morning casta wtn-bars traded Despite hedge selling same fresh buying chan g e d to no lower on die day. 

op PER Lower .in the London Metal « *7*6-3- three months £728. 27.5. 2 S. 27. caused a rise to £8.520. In tbe afternoon ---- 

•hatuw buTThire wa* a rocowry ST-3. Cathodes, cash £703. three months the price moved al a sltfhUy lower i* * 1 j. 

traded we™ tfS-a Kerb: wtretars. three month* level reaching 66.515 at one alase before COPFKB Mo “’ +or B V.' me,: 
'“ u l . r -« 1 . ul » - .' ?V_ nru 2‘ «s Afternoon: Win-bars, closing on tbe Kerb at Turnover - — Done 

unchanged to 10 lower on barley and Navels 4 -U 0 - 5 . 00 : Brazilian: * •‘IKS Ml 

unchanged m 5 up on wheat, Adi re- Lemons—Italian: 100/120s new crop 4JO- prices par loons unless otherwise 

POned. 4.50: Span la: irays 1.60-1 iM, large boxes . 

--3.SM.40: S. African: 4-50-5.40. Grapefruit ■***“• 

WHEAT BARLEY — S. African: 27-72 5.40-4.50: Jaffa*. 40s_ 

4 - or _i_ .. 4V> - Apple*—French: Golden Delicious | I 

M ._ t , l y H + l h + ol 20 lb S4s 4.WH.30. 72s 4.50: W. Australian: July IE -|-or I Month 

U.S. Markets 

I rtivliik-d III ‘725 in a cantinuatk* flaS MorxdngrWlarf. three months £8.455, -!-- ... iteMenHyV + or lVlentavV, + o, S \ aSTES SO- W AuSEET 

M ™ %** Kjjg“WFsT! ^r\^f*s£r c X£ 

1.25 L7. ! 

iientiOl huylng and dosed or the¬ 
ta al 1750. Turnover 21.730 tonnes. 


91.90 I+IL05I 87.1b 
94.7 ■ 89.80 

, £ : jc * 

reban 1 I i 

li.706.5-7 -5.75' 704- 

own.' 707 -6 j - . . SKif?. 

bodes- I 

h .702.5-S.5-6.251 700 

mull?..723.9-4 — 6 | 721- 

I'lti'ni: 705.5 —6 i . “ 

. Sint..' — .I *80.5 

P £ 


4-16 656080 


4-15 6B15 30 


+ 10 

+22.& 656083 

+ 46 

+6.5! 6500-10 


+ 20 i - 

-8 | - 

- - 

~ mer Pippins S.SM.40. Croftons 10.00. 1 

; Democrnrs 10.20: S. African: Granny -— — ■ -'- 

Smith 3.40-8.00. Golden Delicious 9 60- 
, 9 90. York Imperial 9.80-10.50: Chilean: Metals 

. Granny Smith 7.00-7JO; New Zealand: Aluminium..£880 I.: 11880 

Stunner Pippins 163 9X0. 175 9.30. Cranny Piw market Hu SLO 6 O- 6 Q 1 ..'>1020-50 

^ Cocoa and 
— coffee fall; 
3&s sugar weak 

by .physical Interest at the lower levels. _._ ' _ Business dom.—Wheat: Sept. Smith S.SO^.70: Italian: Rome Beauty per £704451-2.7611716.25 tjUbUl IT V-tllX 

The con tango tended io Borrow on 3iSsa l4 gsTj lets or 5 lonne*. Nov. h 6 - 4 >M 25. Jaa. ffl.25-S9.05, Man* pound 0.13. Golden Delirious 0.I64U9: & month* do. da E7a5.7bU2.0 jC736./6 nfvi- vnnir mu is 

^*“3* ** OMUL For- j n i_. g.Lia.9L75. May W-»-&4.53. Sales: 59 lota. J mu mane 0.19. Peam-VIcioriao: 40 lb Ca»h Cathode ..E70O.6 Cji.O |e712.25 NE * ' 0Rf ‘- Jul * ,s 

wa rd metal surtod at S3l 6 and traded ICO irtiaaar prices lor Wl. 'M.S. Barley Sept 7*95-7X90. Nov. SI.90-6L4S. Josephines 1LOO. Winter Nells 10.60: 6 months An. >lo. E78LW-2.26 »:732.75 COCOA mill ally rallied »n Commission 

Marcb 87:oW7.M. May Spanish: per pound Limnnera 0JM*5. Gold.Troy or. 41B4A75 +0.S ><186.575 Ibmac Mnrvlus-. burton then -..Id .'IT 10 

^ K * rb *^hi^ 145 im’ 133 to . ,s - Peaches—Italian: 11 trays jL664U0; Lead Cs«b.E504 -4.2b.Kal2 close Oishtlv lower »n W-al reUInt; and 

Turnover 5.0S tomes. Araoicas n-u.mii, otner mua HGCA—Ex-farm spot prices. July M. French: L60-2.40. Nectarines—Spanish: S month* .. £313.25—5.251 £321.75 price flsinc. Rachc n-pnria. toll re closed 

---- -- A 'X D 'f® s n 1 ,l ^ L3vl ’ barley—Humberside 7X20. 2.00-3.50, Crapes—per pound Cypriot: Nickel...£2,566 .£2.56o lower un i-onunurd Cummis>lon 

l. InUex Limited 01-351 3466. One montb Gold Itoj-l 

Lamont Road. London SW10 OHS. 

1 . Tax-rree trading on commodity futures. 

2 . The co mmodity futnres market for the smaller Investor. 



a.m. 4- or 
OfOciai —- l 


C £ 


J06-£5-3-.S75 i 

i awottfc^. 

415.26-.5-1 SI 


606.5 —1 

U.H. spot. 

- 1 . 

Months: Cash E367.6. X 6.25. 6 5. three day. 
nwmlis £316. 13.5. u 15JS. Kerb: Three Peai 
months £31X5, 16. 15J5. Afternoon: Three «T — 

months fUAS Id. 1X5. 13. 1X5. Kerb:- 

Three months £313.5, ms. xn. 

ZINC—Ltete dtaoced with, like lead, 

wnlcal Interest at the lower levels. _ 

In ihe afternoon some Hop-loss selling 
was wen absorbed. Forward racial moved 

Nn.1 [Yest'nlAys’j Previous | Buwnew 
It^.d I etawe I Close dine 

Coast. S. A/rkan white Ana. SB OO. Liver- SnanlHi •• »-3 Maltese- s'-MJt Zlneoesh.£502 - 1.0 >£311.76 Salos: 7S5. . 

pool,'Glasgow. S. African Yellow Aus. •nalan J months-.£312.25 Ul.SSt321.S6 Copper-July fil.00 .Birsi. Auk. filers 

eSM Liverpool'Gla%ow. IA11 ScHerS.I T»ratU^-Dul«*- cirwri- l'ruducers.IS550-68U [ .;>S50-bOO ibl.SSi. Sept. 61.M. Dec. «3.b0. Jan. 64.15. 

^;MmF‘i23£*. V! 22 01 ’* , i-SSST^VSSS: oils i i ^ 

. IMPDRT ^VIES. RflecUTP for NnnlMi 9 JLIh Iwik ■* wi- Italian- rPHih Dec. bO.TO- Jan. |D_ 0 . March 71-0. 




+ *ir 





i'month* _ 



S'mflni in 




° wm tt __ Oct-lien 5S-25-59.40: 56,56-66.50. 66.00-55 JK wheat-K 92. niL: m. nil I9LS7. ml. nil. g^, h . i 7 e7 Israeli 7 ^Gredr 

.in. ;+-^. p. 01 . WJlrJM.15.59^ 58.65-50.40:^40.67^ m 1 '-D™ whMfr-137.3i. nil. nil. nil EnXh prodi^ Pelioes-pv'56 ib 

W*i — UnoffleW I — Apr-Joe! ffllB^oSj h8^-ffl40 60.20-58.60 J,;? 7 '™ ' Un , ‘ n d-. ni1 . L0O-L40. Lettuce*—per 12 Offl. Cos 0 - 9 O. 

Apr-one; aaii. tui. nil. inu-i «o Lettuces—ncr 12 n en Cos njn Seeda 

aiK-H-S^SK “Ssiri ssa*=s» ta.aa- as 

It r- eg-.! = L.: , 

. 2 ,4T> kW of 5 tonnes. ml. nn .S6.7C, nfl. nU. nlli. Grata Vffi'rn **" 1 rv^- , *5nn^f' Hum* PWiinta.... *81.7 - 0.10 £81.48 W'“ e ashed '23.75 

On previous physical doslne prices fbuyeni were: sarabum—Sfi.02. nQ, mi. nn <85.36, ml. l^r 1 ■ ' ■ - Alaire--..] J iradedi. 

!°LnUul=M. SPSS <SUSK *** ^ ‘“• 25,i ML.SrJS«?ai5. -, K ^French An.dA.jfiXM L.£103.75 

Three months COYARFAN MFAT n/HOI CTmmre J- 2 **- 11 :. G 7^?S ks *^£f. r Ktii-luh UUlinTt JEB 1 . 00 1.. £104.5 J - an - 24S.30-24S.jO 1217.601. April J51.70- 

3Ul/lDtA]> WUUl rUrUKES poaaa ^r 3 .’. Let f Ue l ? ■ rJz2shh m ~«r 1 '£!i£St t'-iW Ztni :51.9a July ?S5 30-25550. oa. 23S.S6-2S9.IW. 

Lower than expected 05. weekly soya- london-DuU and nw^yr 2 S Jta l^ Carrw ta-per 2 SJb .Miff Jan. 3iC.SMe.ffl. Sale- «an. 

beau raspealon Tor export drove the reponed EUch'-- featureless. WUt Wow-per poond uniee FolST.. I , *Slhrer-Jiiiy 522.50 .520.40.. Auc. 323.50 

edoi nrleo fl Imrer while Ihe tnnexnt . r, Coorpottes perpotmfl B. io. pi nan: m . ■ 521.701. Sent. 527.30 n...- UP ill!. .1 in 

A XI FYrinmnNAT T Y RARF An *-.I MJMMff MAMA* 64.«0-S5.05 sod Oct. preinium 'previous in bracketsi Llo»»t n Cnrie' l +15X £377 

AN EAtLrllUl>ALLl KAKJi. U ro the Kerb at CM4. Sept ....; 54U0-55J9 54.4M4.80. - aft iu nnij x oi P..V 0 TO per lonne: Commop n ' 5SL L’S 'X £11 

_ „ , „ Tgnover 3,400 tonn es. _ Oct-Uect 66^6-59.40; 56.6666.Sa. 66.00.55^5 wheau-K s:. nil BO. nil I9LS7. nl 1 — S * “ eBrnBr— 

T F ASKHOLD P^>- ft4i'r Jan-Jlr.i 88.15-58^58,85-511.40: 58.40-67JO „ Oarum whMt-137.91. nil. n 

LXAjrOAVljJA ZINC OfHvial — CnofflcH ) — Apt-Joel ffllB^oH 58^-«<L40 60.2068.90 <137.91. ml. nil. nill. Rye-894-, n 

----:- Jl.v-defSI 8Z.BM8.10 62.0M2.8O; 6IJWI.70 ^ fW-ffl ml. nfl, nfl). Barter- 

o * I £ . Ueta-DaJ B4.06-B4.TO t4.0M4.lfll 64X&-83.HI Ml- <sU. nil «ha.36. WV tUL mil. 

/ Qssh.- 303.8-4 -3.5j3ni.5-2.5Ll Jan-ltai 06A6-65JS u5J6^5J0 ; ffl6»-65JU] ^ .<7087 . nil. ml, 

OmJ 5-month*„ al4-.5 -3 ! 313.4 |-1^6 Air Jtic 87.70-67J» f-7.5^7.65. 67.Sfr66.95 (nUnw than hybrid for seed 

- . ' SKj ^ F“! U. I r - 13 == SSUt-™ 

Magnificent South-facing _ »jy m<L t°“ MevlDUB Phirscal Closlnc prices fbuyersi were: witaum-^02.' «|U . Jl nft^ffflst 


SP'SJSS mgsyrarJS-Mft soyabean meal , wool futures 

I the landscaped garden, Spanish-style oar, oeautuuiiy cry ynrp v_ Low ^ r than , expected VS. .weekly snra- LONDON—puli . and tea cm 

L.lni-rinncwl Dining Room, 3 Principal Bedroom Suites with 3lJLYJfcJK bem raspealon for nm Aw the reported Baehe. 

ZstU Room and. 8 Bathroom, 2 more Bedrooms. Bathroom 4. saw mMMiii Jjbe SSihw'Md S_. Pa gta rMW 

Jidy 19 in order Z French: Names 2frlb boxes 2^0: Italian: Cooonut (Fhili.?645y ......... S6B5 

= f b -“ Scclroo^yprloft SS lh 1.00. Groundnuts.. £588 + 

Hum Malayan.IS58Sf 

May SSJO. Saleh: 2^00. 

Cotton—No. 2 : ftci. iai.7i-WJ.7fi >60.;4i. 
Dee. 62.63 h£.’B7 i 62.66i, ararch HiJiO-H 22. 
May t>3.26^3^S. Julv ii6.2li.iMi.35. On. 
652!5-65,60. Dec. 6521IMS.23. Sales: 3.050 

■Gold—.tills- 195.60 < ISfi.UOi. A up. ISfi 00 

* SE ma ‘ 1 O i 0 OTe, ' 1m,B Physical doslne prices fbuyeni were: 
° f ^ U i ,^ oge - rj . * e ^ Spoi 3J.5p August 3340P C53J3»; 

nonane: Cash 1304. three months £314. f «i, 

If US, M. Kerb: Three months £314-5. Mp ,w 
If 145. Mierncou: Three months 1314. 

i 208.90. Aur. 204.00. Oct J07J0. Dec. 210.40, 

| Feb. 213.K0. April ?IS.SU. Sah-.s: T.fiflfl lui.-. 

. ; tLard—Chicapii lnn>e unavailable. New 

,_olio £81.45 ’" orti nrinie sieain 23.73 asked «23.75 

roportioned Dining Room, 3 Principal Bedroom Suites witii 
>ressinc Room and. Bathroom, 2 more Bedrooms, Bathroom 4. 
Kitchen, Servery, Cloakroom. 

Lease of about 40 years. 

Offers invited around £425,000 

Lower than expected 05. weekly snra- London—P ull and 

bean raspealon for export drove die reported Bache. 
spot price £1 Inver while the forward < Pence par Idlol 

■" ' Coffee Folure.. 

'Silver—July 522.30 ■ 520.40 1 . Aur. 523.50 

swSScrdSEi 1 EE ^ 

833.4c, down tin sbt-monlh 643.0c. down izr««nlny -f- or ■ 8 u.-idus- 

2.6a and 12 -niaoOi SM.7C. down l.Bc. lh»e | — Done 

The mem opened at 27«79p f52S5564ei -'--- 

Hampton & Sons 

and Closed at 37fr279p i524-33My>- 

dlLVBlf Bullion j+ or L.3I.S. 

per ■ flxlos — CK»e 
tray na. punis 


AujtbI.I12.0J-I3.S—1.10 114.00-12.00 

Apni_-116.50-17 S- 

June....M16J0 19.8- 



4- nr 




- . 








2442) 40 J1 


Day_ 502) 









nz £7.61 per 109 yards. A up. £9.81. £7.62. . _ L 

Sept. £9.81. £7.56. - B ” nrtlla £2681. . gg" —*- \ cno. t UnouweO 

£27.17, £27-37. Yam and doth quiet. * 4™*- n» June-AqgnaL n luly-Seot 

Soyabeani—July G32:-B32 teilli. Aua, 

Tel: 01-493 8222 Telex: 25341 

■*pnt_ 277.7p j-O.6 | 278p |+2.5 AHeuu ^.-^I IB^q^IJl—0.5_ 

'““iihfi- 284.6 p —0.8 384.85p i+8J Sales: 136 lois of 108 tonnes. 

rawnha.. 292.8p ^-1.8 - i. 

i tra-awbe.lSOO.rp i-n.e _ - _ I- CT ir 4 D 

LME—Turnover 215 <1101 lots of lO.OOO 5UUAK 


Sales: tl <2* Ms of 15.000 te. 
SYDNEY GREASY—Micron contract— 
nn order buy-r. seller, business, solesi. 
Close. July 32.5. 394.9, 333J-3S3.8, J; Orf. 
344 J!. =44.5 1HMW. 5: Dec. 330.2. 
331.0, 35i.fL.T5i 0. ti March 3KLS. 356 9. 
356J-336.0. 24: May 3S9.B. 260.0. .300 0- 

Japan and U.S. 
plan farm 
trade talks 

TOKYO. July 18. —- 

.1 it S 1 DCUP. £05.000. Spacious 


%££ w»!VgC as?** eBae " 

■RAVIA tk S.W.i: Pr"aw Rcsldcner 

■ Z 1 rooms. ■ namroomt. 
6 neod Of modernisation. 98 vear 
,se Ground re nt L 2SP P J - rfff5 
95.000. No offers. Tei. 01-570 


1B9. •»«e"*.S r ® c *vI5i spectacular 
c or All-In Menu. Three speoacuwr 

tr snows 10.45. 7245 a"d 1 A» »nd 
K nnv Hawbesw Otfh *.r. r ^SS£= 

SOYLE. 60. Oean SlfortjLgndOjj, W.1. 

enow at Midnight and l a-*"- „ 

, -Fr i Closed Saturdays. 01-A57 B496. 



20-26 September 1978 

Southampton to New York • 
£700 or U-S-S1300 
all inclusive of air fare 


Ovcra Read. Leaiherbeid. 
Sumy KTil 7NJ. Englsnd. 

M'wntaii: Three months S4.9. LONDON DAILY PRICE Iran- snsari 360 0 , 4: July *66.0. 3B&5, 368^.168^. 4: ._i.,■ 

85. 5.1, Kerbs: Three uwnihs £S 3 ^o riffl.OOi, a tonne tif for JaJy-Auc. Oct. 3B9S. 270.5. STOJMBBJ. 3: Dec. 37Lo. JAPANESE AGRICULTURE 
n^ilui^Mal^a 7 B j e shtpmcni- Urhtje sugar July. Aufr, SrpL 373ff umraded- TtRa]Minister Ichiro Nakagawa is to 

55iSr“ £Z-_ ff-, V: Kerbi: I9SM hbsml NEW ZEALAND Crossbreds— aose _|_h wa<thineion in Sentember 

Three months 285.3. S.S. 5.6. Sfr- Keen mag at ibe opeiuu; iMind few fin order buyer, seller, business, sales*; « n vyasoingiun in aeptemoer 

4 raS airi ptic« Dec. 133.2-193.7.^ ril: H^h IWfr for talks Oft agricultural prO- 

COTOA some" 130 potms below Kerb levels. The i«-s. nil. mi: m» i«.fri88.5. oiL nil: ducts in connection with the 

- , . ._ , .. tnartcr wan httle changed later in nod Tokyo rOUOd of multilateral 

Prices eased thnmgb the day wift the tvtyvw trading conditions. The LDP nU - BU: Di e - iw.frfflu, nil, iuL Total rjJYr “ 

threat of fim-hand selling. GlD and was set at ifflati, its lowest level sinc e Mies: 10 lots. trade negotiations, a Govern- 

financial times 

July ft: July ti iTiintb^«ao| 
£35.34:835.34 848.5? 250.26 

(Base: July l. >09l=ieai 


JHly”18]"jmy 17;Braitli «^ Trarai^ 

Pecgnber 1772- 

e,u K“ L 







Dn&Us reported. December ZVTS. _ 

'cocoa + or " 53 w“ « ■ i T MEAT/VEGETABLES 

-COCOA { Ctoe - Done PreL ***££> 'l ‘‘gg?* I MEAT COMM/SSION. Averaa fataforic 

Nojj Contr’d I I ° ' Cto# I Uun * vrlcca al representative markets on July 

as —issek pi£[ggt&i —4— rh^r- - 

i-no|T7«.'fr«'o A °K--] M - 544.1s E5.25.83.s9 C 'IwtaS aSl 

3«^.r"^iiw£frim Urt - -■! . 87^5.25 down C3 ocf «nt. «ttaw price Ti.l4p 

in if tutffl, P-99,6 I—iLallBffi.0-02.0 U«_...j 87Jfr88.0oS'JfrS9.35 | 8i^87JJ5 f-OJOi: Sheep d®wj*_4frper cent, averaco 

^•pr.._7.0 1683.0-80.0 ^**2' 5'J!! ! i 5 - 4 ®*- 5 -* 0 Price 24S.TP ' -I -'- Pk* up 3.4 per 

- I.u mw-v-pu-u H.7fr9&B0|97.8fr*LM . 87A0 575 cW a«wa*e Pries f-u,. 

falffl: 4.36 (UK) lots or 10 loones. Ane.....|lUlJ5-m4 1 j!JW il.55101 JfrW^O S««aB*-Ca“Ji' mnriWi m 2.7 per 
i*tamatiati«| Cocm OrsmdsatlM cTJ.S. O-i ^...!lU4.ofrt4.4D!iao.OJJ15J5 — COM, averaae pnee Ttfrtp 1-0.2); Sheep 

§ ___ ment spokesmao said here. 

MEAT/VEGETABLES „ T he f ec f^ a, “® de . fc y , lbe __ 

H e>r rnMMissiOK. Cabinet, which has been in close uo* 

pricea al representative markets on July CODtSCt With Prime Minister '•w* 8 * 

«: g.b. caftic per ks.i.w. f-B.S9i; Takeo Fukuda at the Bonn 

c!B. 5l riM Sir 5jSfl‘*iAi TU,: Economic Summit, he said, rEtwi 

England and Wales—Cani- rmmDers RCUttr 

14Z5. Q|iaao.7: 1496^ 1 1531-9 
(Base September tft. nqisTigoi 

«u.s. 6TH!"'iu4.ofrt4.4b!lQB.0J^s'i5 " —” coni.'averaaL- price Ttd4p i-0.2>r'sheep StOCkpilC 6lll j ---1- 

, .FfI Closed Saturdays. 0 per pound>—Daily price July 17: —--—---- down its ner cviu. averane pnts 1K.2 p r f!1l Intrnrl I 'PlO Uo»mhItI 4X3 

...... .— -- MilS (Ufrai. Indicator prices Julv 17: Sales: 5.198 H.SS3> lots of 50 touncs. Pigs up S.O per -v-ra. averaifi Still UCIaVCQ I - rDorembra 

.__ -_— — Ifrday averaco ML 12 U414I3); 23-day IMHMt | WM | Aatw m e ni ijis Dries 64.0c i J -0 8). J ! , ...... . ,^ 

| ,7craw 1V)26 < cents per found fob and aowi.-d Caribbean THE SENATE leadership Still 

LONDON COMMODITY CHARTS COFFEE K: r ££, u ZJ£ 2. SSJ& *!Vm£J£L£Z k» *«*>«; o«e for the 

I iJ- 1 37.0 to 39.0. Veal: Dutch hinds and ends consideration of the Bill allow- rnTTfllV 

..IV Wch/Low/OMC Chari* with .. woMi sTAs ranted strongly fa u»c __ . __ T _ 22“ S° in S * or t** e disposal of metal wtivn 

' . Mo.ine Averase* name . ■ tuondnK after shots support was found GRAINS- 10 a - 9 - . I 10 ^ -0- heavy 30.D na+rnnal ernr>|rni1e<i 

. 10-and ZtWw Mo,,,n « 8 | at die previous day's lows, on the UIViAllO t0 Mg. Iropori^ ftpam NX PL 54.0 from nationaj ElOCKpiies. LIVERNDOL COl 


i./y Hich/Low/OMC Cham with 
. 10 - and 20-dar Moving A«r»E« 
■dattd » F^iflav'* riw*. 

tfAiUKiri. m June-AusnsL n luly-Seot 62S-627 i636i. Sepi. f- 0 ®:. Nuv. 59j-iW>. Jan. 
pJuly-AuE. oSepL r Ausust'frepL xPa 80u;«ii. March 607. May 61H.12:. July 
tea 612-613. 

Soyabeu Oil—Juii 24^II-J4.I5 <24 57.. 
Aug. 23-15-23.30 <23.631. Sepi. 22.JU-22..U. 
Oct. 21.90-21^5. Det. 21.30-21.3.=.. Jan. 

INDICES 2 j^Starch 21.13-21^0, Mai 212 -U. July 

_ IlSnyabcan Meal—July 169.00 1 169.10 1 . 

--AUB. 165 JO-164.71) 1166.301. Sepi. 1 W. 0 U- 

FINAMCIAI TlMfiC 163.70. Del. 163.00-162-SO. Due. 1B22!0-1GI.9 i>. 

iiMUbiiik i imtb jan. I62J0. March li^.ao. Mai 

Tulr ft July K Jlnnrt 1SS SU - JuJ »' ISJ-SfrlrW 00. 

- -- Sugar—N*. 11 C.I3-K.17 ifiJIH. 

855.34:855.34 848.3? 25D Z 6 On. 6J7-62:S .6 Mi. Jan. 6 65-6.71. March 

" “—---- 6,9941.00. May 7.03, July 7.25, Sept. 7.4J, 

(Base: Jnbr I. tflSS=iea> Od. 7 5. Sales: 3-300 

ff£yygf{>g Tin—555-5TU ntun. 1557-573 nnm.L 

TirnTi a~i w 74 Ti 7745 —■■ .i t— _-i-=- •‘Wheat—July SOJJ.JM &-pl. 

Jul> ia | July 17.MontU wgf Twirmi» 3D6>306 i311i». Dec. 310i-310J. ilardi 313s. 

1425 011430 7 lOOg D ] •e9|'q~ Ml} ’ 31,1 Jullr 3a:l- 

S^5_L™»-9_ WINNIPEG, July IS. ,.Rye—July 9 S.Jo 
rsase: sestember m. iBn%ini ibO.oo bid■, Oa. 9«.7fl <99.w>. Nov. 97.30 
-- l _ up ._ ashed. Dec. 96.70 bhl. May 96^0 bid. 

__DOW JUNES I,0au—Julv 6S.60 1 69JO bid l. Oct. SK .20 

Oo» I July Julv ilnnrh "v-," iTO.Oui. Dec. 69J0 asfciH, March 69-0 

Jonas | J 8 17 “ totted. May 70.90. 

-—-— iiBarieji—July 71.SO bid i72.70 hid'. Oct. 

spot— 351.27558.18355.72384.16 TI^O (72.501. Dec. 71.80 bid. March 71.90 
ftituros d3S.7Si530J>lB65^Q g56.96 bid. May 72.50 bid. 

fAveraee intOMleun ISFtaxseod—July 227.00 >231.00 bidi, 

' Oil. 22S.OO bid 1232.00 hid'. Nuv. 223.S0 

MOODY’S d’Oied. Dec. 227.00 bid. May ashed. 

- - TiTiWHcm—SCWHS 13.5 per cent W^tcin 

• J Vo' r I J “LV jUombiYw" comeni df Si. LauTcnec 159.32 UCl- 61 . 

T " _I_ 1 | All cwns per pound ex-warehouse 

sale Uoiinniv 411 nail ftiavn K «i a unless oihenrise staled. " &s per troy 

Zi — 81 ,gi9M 68818 ounce—100 ounce loss, t Chicaen Ioom 

fufieamwe Si. i931?!Aqi ss per 100 lb*—Du pi. of An. prices nre- 

1 1 ■ ■ vious day. Prune steam fob. NY bulk 

tank ears, i Cents js-.-r 56 lb bushel ex— 
warehouse. 5.000 bushel lots, f SB per 
rnTtrAai Toy ounce for 56 oz units of 99.0 per 

LU J 4 [Y cent puniy dulivcrcd NY. •: Cents per 

troy ounce cx-vb rehouse, ]! New “ B " 

< nn-.-nn. r .-I „ roniraa In ss a short ton for bulk lots 


Uow | Silly July ~Mooch Yeai 
Iona* I 18 17 ngp u ,. 



Ju >v | Jinv jUomhiYwi 
lloofy n 18 | 17 I non I iuj. 

fD n rambra Si. im^ltai 

enclmc s 


Equities react on fears of extended dividend control 

Well-covered companies vulnerable —Share index falls 6.9 


—-r'Ji'te I "JnisTf Juiv I Jojv.j Jfjjjy i 

Government does..I 70-50. 70 - 5u | **»—*' ; 

.| 7 H liiH 

well-coverea companies vmnerame —snare maex nuts v.y =£-"”£ -g 3 9 9 vaaim aaojrjm ors mar ! arere/eara* .srarjeszgsg g*s£StS!SB ES59341.34 

iion won io extend dividend July S 00 series ran back 14 to Leading Stores contributed to month to extend dividend controls was only light and ,Lnnr Kenomt har dened 3 to 79 p .. turnover £m 1 — 68.07T 70 .B 6 8X.7il 

. restraint bevond the end of the ->4p and the October 900 the dull Trend. Marks and Spencer unsettled the Miscellaneous In- United to around O ffiahK, 4 to I22p. Teas Ho*UrW"*-H 

month led 10 a reversal of the relinquished 8 to 28p. declined 4 to 154p and Gussies A dustrial leaders which turned leaders. Land Smirrti^ back T*fr^^ ted duU feature j n - 

•lircvious ciehr-day firmness in Following the reverse takeover closed a similar amount cheaper lower in thin trading- Unilever 4 to £l3p after Warren down 7 at 218p, on further 

i‘CHiiiv market.*. Anoiher con- ./n'iH *Z»i ai 280n: the latter's Dreliminary lost 8 to 532o- as did Glaxo to day’s improvement Of 6 . Else- Warren,aovm iai*: h. 

.previous ciuhr-day ilrmnesss in Following the reverse takeover clos ®d a similar amount cheaper lower in thin' trading- 
equity markets. Anoiher con- oC R C id and Lee, motor traders, 280p: the latter’s preliminary lost 8 to 532p- as did 

6qDity turnover £ra... — ] 68.07j 70.961' 81.7 lj 81 

Bnii itv IwrgUn. Mil.. - j 14,7641 1^7SSj_l?.g»3.18. 

10 am 477.L 11 am 473.0. Nona 4742. 1 pm 4745.- 1 ’~ - 

5 ptir 47X5. 3 pm 4T3.R. --• 

, Latest index Bl-246 H06. . _ _- : 

■ Based on X per cent eorpamm ua. ■ -...- 

Basis 1M GovL Secs. 15/1MK. Fixed Ipl IKS. Ind. Ord, 1/7/36, ftoH 
Mines 12/0/55. SE AeUvity July-Dee. ise. - - 

Office! and ih rneswage'that the Ranks mciai- and Lee Cooper relinquished 5 to 100 per cent scrip issue, closed 5 perly Security, 156p- Dealings A further improvement in the 

oennonne recovery could falter DaUI0 easier jMp in a thin m^ket. down at 353p. after 5o0p. Reed resumed m Rosefaoug£ now a intfestmem currency premium 

next year. A firm market recently on Engineering leaders turned International, on the other hand, property Morino at coupled with a continuing modest 

Fnrhvuiami vnerated by Mon- buying ahead of the interim divi- reactionary in thin trading. Tubes, moved up 3 to 143p, after 146 p at i 9 op and mosmg at dem ^ d prompted smaU 

dirt" laic no-mcSVnt Of Ule dend season and on Monday’s io tower at 36«p. led the retreat following an encouraging set of ISap compared with tne suspen pains jn South African gold 

Nneeial deposits recall until Sep- announcement of a two-month followed by John Brown, 338p, and interim figures from a south sum price of l64p. - shares for the third successive 

lumber ii evaporated as buyeU postponement in the recall of Hawker. 212 p. which fell B apiece. African subsidiary. BTR were n;i A « trading day. h 

decided in withdraw in the face special deposits, the major clear- while GKN finished 3 off at 267p. firm among secondary concerns, Oils OH Otter The steadiness of the bullion 

i.r small wllinc The pres- ins banks encountered light Elsewhere, Staveley industries at rising 6 to 2B7p following details Leading oils took a distinct price—finally aO cents hard erat 

> u rci! IcroaM/dw heiTan attempted profit-taking and drifted lower 290p, encountered profit-taking of further U.S. expansion moves. fij* JS, yesterday. S1S4.875 1* "SVEUmB? 

artc'inuon rally faded abruptly with ‘be SeneraJ trend. Llovds scattered light selling in the pre- to_.keep pncrt / ® n __ a ^_i v ^L*25- 

now a 


I 1A7E jSInw Conipliaikui f 

| High [ . Low- [ High | ( 


i - » - i- 

f July“i July , 

V : 

Gort-Oew-., 78158 6&179 127.4 «-l® I Uin-Sjpil-.]. 158.3 I 165.$ ;* 

16 , 6 , Ota mm risaciT JSSi ml 

and th*.* market weakened further cheapened 7 to 275p. while 
with I lie rc-ul! that the Industrial Barclays softened o to 327p as did 
Ordinarv share index closed at Midland, to 360p, and NatVVest, to 
the dav’x lowest of 472.4. down 2S0p. Elsewhere. Union Discount 
i 3 >i * put on a to 3lap in anticipation of 

.... . ... today's first-half results. London 

Especially vulnerable were ScoUish Finance lost a to 35p 

companies me amona Hire Purchases but Provt 

dividend co<rers whiich Ibeen dent Financia , hardened 2 to 94 p. 

1 ^‘IV Pi Apart from Hogg Robinson, 

ESSS S’ to 5fiSp. white GEC * h ‘ m 5j!«e 3 to J^hhher 

SSun^Sr lhT"SS.r“Sn» 21 pSTEd"^'l! 
,i | r ii!i , i U m!r CS m ° lher indCX C0 °* nSfSwl E’lteneffi dS'ttSS 

Miiuents. Sun Ajiianec gave up S to olflp 

Conditions were not ideal for an d General Accident, 2L2p. and 
first- 1 ime dealines in Cartiers. Guardian Royal Exchange. 21 Sp. 
which was heavily oversubscribed, declined 4 apiece, 
bin interest was very livejy and Buildings again traded fairly 
inmover finally assessed in ihe quietly and the majority of move- 
region of over 2 m shares; after merits were small and irregular, 
opening at Tip. the price rose as Wcltern Bros, were outstanding 
Mag selling j\iis absorbed and the a , jn.lp. down 8 , following the 
close was ,;Sp. after a peak of f lirl h C r rejection of the offer 
'•’l 1 - worth 120 p per share from. 

NEW HIGHS (102) 


scattered U^ttt sSSS in the SC Prices on an even keel. JwL om.J 497.3 433.4 549,3 

Slfa??hin co?Sns soon P be^ Most of the Cape interest was f ©fl (14/9/' 

iDg°reflMied in prices. British directed towards the Johnnies a„idMlDM.i t 68.6 130.3 442J 

Prtroleum reacted 14 to 852, while Duarte? ' Wl> 

Shell, particularly unsettled by appreciably’ bigher June quaner H . 

feara of continuing dividend re- profit- R glldfo °^^ \on„ 

straint. dipped 15 to 580p. Dollar £24 *■ rn^! 7 n 14 T ° 18 ° P 

ttLm S^S5Lwf?S“i a «3.» il 7P ihe sharp., NEW HIGHS an; 

further imorovement of 2 to 481 increased profit caused Harmony xne jouowms sccuriHw cuoted in i 

wem 0 !? 1 ? uT'SSr^iS 11 on Anglo- ^ lZa 197a - 

sspjs! rjrr-sw » m mGHS W02) 

cent speculative shake-out and profits for the June quarter. The 
picked up 6 to 376. KCA Tnter- Gold MinK index added L3 

national, up a penny at 28p. bene- more to 1 B-H. drapery A stores isj 

fitted from the company's state- bouth African Financials 
men? on its cunwrt financial po^- moved ahead in line vrith Goldx 
y on De Beers were outstanding with 

^till reflecting Far Eastern de- 3 rise of 6 to 388p. London- ___ 

"S 'SBUTi s: - J5S ”• SSTifi * 

S a? a lovv ebb. amities. Gold Fields, 174p, and 
price movements were usually to R'° Tmto-Zlnc, 2J8p, both eased ■ — —— 

A niarghsally ^er trend in np 

FortAInt,-! 8L27 I 70.73 150.4 50.53 tfpecutau™..! 28.1 

(9/1) (6«) 128/11.471 (3/1.‘ib, f..—j 10B.3 , 08.4 

. . oitoyAVisacl- ; 

197,3 «3.q M9.» Out.K.leed.J 144.011464 

I (6/h ©3) (14/9/77) (XfiAOt ln , (cn truU'...! ISt.l ]'14A7 

Geld Mines. 168.6 130.3 442J 43.5 apwul»UTo...l B8.3T 30.9 

] (8 lit (Wl) ' (22/6/76) K36/I0/11) KCi*si«.1 98. B 1 87.0 


The loitowlnH securlHw «uottd in the ‘- 

Share Information Scrrfcc Yesterday TE ".L3I 

FOODS (31 
MOTORS (2) _ „ 

Shoes ii> 


NEW LOWS (15) . 


Streeters _ - ■ - 

Redlttascoa _ , • . - 

FOODS (2i 

Bishop’s stores L .. n -j.r*»yW L Rutledat 

Brady Inns. 

Bndoend Processors Satv U.W.) 
Ham mex Stenimi mot. 

Macarthy's Pharm. ■ W * Rigoons 
Monument - .... 


Reardon Smith 


worth 120 p per share from. . _ CDlonSl edged forward 2 ’ to A marginally easier trend in OPTION'S - - . V, 

V : nimpressed by The outcome of w. and J. Glossop. Brown and and lost 6 of the previous day's and Syllonc added 5 to 13 * p on =_ f ron + 0 f today's interim overnight domestic markete was mim „ ■ • ■ - i 

ilie Bonn meeling the market in Jackson encountered further advance of 14 which followed the higher profits. Western Board ...wsig Anglo-International b y the rise in the invest- DEALING DATES Deferred. Matthew Clark,' VDlt" 

Gill-edged securiliea was content support and put on 4 more to investment support and news of MilLs improved 3 to 73 p. also afier , 40d andCiiy and Inter- ment Premium and Australians jri rst Last last For Town and City Properties, Britfet,’.; 

;n await tomorrow’s money stock i 42 p. but news of the £2.Q2m the acquisition of Eleclroscale trading news, and Zellers edged natinna . iru p DU « on 3 apiece remained steady in 

licurcs. A continuation of r ichts issue left Wm. Leech 2 Corporation of California. Peter forward 2 to 54p in response to iesues. Rollnco s “? d “ ed trad,nR - 1 . L1 

Deal- Declara- Settle- Land, MFI Furniture. Smith uf* 

■ ml- u'li-ti uuuuuuvi '-“■"-w nosen one-ior-iwo scrip issue ana iloi> vu ou>m& in a mm nu«wi rairrorea general marnei whu'- - - - “"27” ~ - —r- .- j- 

simikirly after ihe official close. encouraging statement on pros- and British Northrop improved 3 tions, easing back on small sell- 164 P- shares. were w^ongjy Elsewhere, Murchison fell 10 to ^! ia e Informat 

limned support in a thin and Scus prompted a^similar gain to to S4p. Up 15 the previous day in iog and lack of interest. Rolls- listed in ^terdays issue as 235p followmg the low in the Money was give 

sensitive market took rates for imp in Magnet and Southerns, response to the 125p per share Royee. at 96p. lost 1* of the pre- havnng recorded a new low for June Quarter butbig- m Associated Fish 

sensitive marnei iook rates lor imp in ana ciouinenis. <■« ‘—h .h— *i ... . r „ r ‘tjf» 0 A ath. 

mve<iment currencv higher amiin Rises of 2 were also marked cash bid from the Birmingham vious day s rise of 31 , while Lucas D 1 ? y S? r ‘... n „ _ .“B . trol P the Gape lilted Atn 

r.r*. i..L_ minutes Trust. iaH U «tri« 3(11 n. anH Dim loo. 77 d. In Textiles. tUrngwortb Moms kander Lease by 20 to 26op. 

Share Information Service short-dated caU was done ip** 
Money was given for the call Burmah Oil and a put taken ou^ ■> 
Associated Fisheries, P and O in English Property. • . 


STJmjDSf .4 nA fsmrmmgm RM-» tb. Bengoel,,. 

s sar»&# t i-ss3r* , s - 

?s offer "tabled 5 the ui S! »>P,S2? Refuelling rose see^m ^Allied. 15o P . and aND p^ LLS 

£ a technical error. 

, 1 .,,\ SE conversion facior was 9 7p. jumping 33 to match the Imps Small selling cupped 4 irom 

IMSH21 (H.i;732). 1CI gave ground in the face of cash offer of 160p, a premium of ^ k , ers l - a . t l , t rise^of ^4 whil^eains of 2 

The volume of business in scattered offerings and lack of 2Sp per share on the original sepn ; Q ' AlijeiL 155 p and 

Traded Options reached record support to close around the day’s offer tabled by the U.S. concern Slip and Flight Refuelling rose 

^ "“ h ■ Ian - 7 « SSPfJSffJWfifaS 4 8»Sp« 5f*p JK 

W&r as GEC on offer JS STOSS' 


Denomlna- of Closing Change 
turn marks price (p) on day 


low nrto.i*' 


Rank Org. 25p 

BATs Defd. _ 25p 

BP . £1 

reached a total of 1.240. The---- Associated Dairies. 229p. and Savej up 5 toSSp'Wiue .Assoewiea -noy•«»» » m rhim Fmd... 4 tt 

bulk or (he trade was done by GEC fell S to the day’s lowest Turner Rutledge, SOp. Among eased 2 l? Rowing the full wrecim our iaueofJimy 15.'The Cpn Qmu afld FBrciIB 
m,.W,v_ uhen U 1 S Mm of 267P reneenng market fe^ of Hot™ and d«r!ts P GmSI Lj*hazard. JSZiT -=T £ ri 

Ue Down Sane j GEC . 25P 11 - 267~ 

sr {Dunlop 

Grand Met.. 50p 

tr-invicicd. This heavy trade took further dividend restraint. Other 
place ahead nf today’s expiry of price movements in Electricals 
the July scries and tomorrow’s were limited to a few pence in 
start in the new April 1979 series, either direction. Westinghousc. 
A particularly hectic session was .it 54p. gave up half of the pre- 
.-oon in Lund Securities in which vious day's Press-inspired gain of 
424 trades wore done, 387 in the 4. but substantially increased 

m:-- loifloYP J ni ,- came back 5 to 78p: the pre- and that For All stocks as 112.77 Recent issues ——.... 

inisc. leaders down lLmmary results are due tomor- Guthries figured prominently In 

A Press report suggesting that row. Rubbers, rising 12 to 357p in active Totals.-. 

Totals .... 491 5a un I Commercia 

so Thom Elect. 

“2 Barclays Bank ... 

* RTZ . 

tL Shell Transport . 

50 Beecham . 

30 Boots . 

— Cartiers Suprfds . 
373 Commercial Unn. 

328 v,. ■. 
228 v 
007 -•< - 

720 -w 
233 *. 

7t v - ’ 

30S i* 1 ' - •« 

296 J ' 



583 • 

.184 '.: 11 

. 71 ...... 

13S. V '• 



Senior executive changes 
at International Paint 

Mr. C. A. Ilugg. who is also a 
d'-nuty chairman or Courtnuldx. 
h.i< iii'i* left Ihe hoard of INTER¬ 
mure time 10 other commitments 
w 11 Inn ihe Cniirlaulds Group. As 
previously anounccd. his succes¬ 
sor .is chairman of International 
!'.nnt is Mr. R. M. WoudbouM.*. 
Trim has been Kruiip managing 
Hirer! or sinre 1972 and a 
Cniirr .ml(N direct nr since 197U. 
Mr. C. 1C. (Er>l) Morris succeeds 
Mr. WuinHum-v :i-* group manaa- 
jng rlirecinr. Mr. R. A, Fidler. 
Mr. 11 . V». lledk>>, Mr. T. B. 
Lemmon. .Mr. V M. O’Malley and 
Mr. Ii. A. Uplill-r.rnwn were re* 
ceiillj •■leeleil In Ihe Inter¬ 
nal 1 .> 11 . 1 ! !*.«■ 111 hoard, and their 
appoint iiiciun were confirmed at 
11 * retviil annual meeiing. Mr. 
Erie Marqiianri. who hail served 
ahno-i 4ii vear- wiih Ihe group, 
vi-nroif and did not *«»ek re- 
i-li-etinn .Mr. Dennis Fiigg leaves 
1 lie Imaiil for personal reasons. 
!mi v. ill euiitiniie as chairman of 

Uawe and Mr. .V G. Mac lend have 
been appointed to the board of 
part of the Hogg Robinson Group. 

Mr. Tom Clark, chief manager 
of Lloyds Leasing, has been 
appointed chairman of the 
TION. He .succeeds Mr. Stuart 
Errington, deputy chairman of 
Barclays Mercantile Industrial 
Finance, who has completed his 
two-year term as chairman. Mr. 
Leslie Christmas, a director of 
Rom maker, has become vice- 
chairman of the association. 

15.Vi.WL SVKKTY is a new Radii 
voni.aiiy formed from the .safety 
l-ruduei* dinsion of Racul- 
Amplivus. Mr. Jim Diggins is 
chairman of thr new company and 
Mr. Geoffrey Wcsicolt has been 
.mpninied managing director 
1 uhvr senior executives arc Mr. 
John Hilton, icchnicai director: 
Mr. William Cole, works di reel nr; 
anil Mr. Stewurl Kin chuck, 
lili.mcial dil'eclnr. 

Mr. John liinly is lo become 
chairman of CLEVELAND AREA 
sion to Mr. George Clictwynd. who 
has been appointed chairman of 
ihe Northern RH.\; .Mr. Simon 
Seliauschieff has been appointed 
chairman of the Northampton¬ 
shire All.V in succession to Mr. 
Gordon J. Roberts, who is to 
become chairman of Oxford RHA: 
and Mr. Raymond Pros tick is to 
lie chairman of Norfolk AHA, re¬ 
placing Sir Arihur South, who 
will be chairman of East Anglian 
KH.V All ihe above appointments 
are from August 1. 

Mr. Henry R. Rainier has been 
appomicd managing director of 
SIDNEY F 1 ..WF.L. pari of Glyn- 
w«hI Domestic and Heating 
Appliances. Mr. Bnlmer was pre* 
Mnusly with EMI and earlier was 
managing director of Valor Heat- 

Mr. Peter l^ind has been made 
group managing director, 
Mr. Land, ai present director of 
corporate planning. National 
Freight Corpora 1 ion. also joins the 
main BTH Board. Mr. Ian Jack, a 
member of the BTH main Board, 
was appointed managing director 
of the hotels division Mlowing 
the recent reorganisation of the 
company. He now becomes, in 
addition, vice-chairman of the 
hotels division Board. 

Mr. Geoffrey A. Rasnn ha* been 
appoinii «f managing director of 
mi 1 he retirement of Mr. Gilbert 
I*. Bartholomew. 

Mr. It. 31. Pull, Mr. J. A. Daniels 
Mr. M. IV T. Faber. Mr. K_ A. 
Fir hi. Mr. If. Gnri. .Mr. R. M. 
Illingworth. Mr. It. Jit pc and Mr. 
1>. K. Snvidge have been 
appuinlril diri-ctors of WILLIS 

Mr. G. Anihnny llepworth Is 
lo re-i.n I’ror.i the hoard of 
further oihor business interests 
from August 31. 


Mr. J. B. Rogers has been made 
managin’! dircclor of MAN¬ 
ciate company of Halliday Simp¬ 
son and Cn. 


Mr. J. H. Blonr has been 
appointed managing direclor of 
r’.RNALI. AND SON'S to member 
i.T the Avery Group), following 
the rriinment of Mr. S. A- 

Mr. Peter Holden has been 
aprminted to the new' post of 
corporate planning director of 
was formerly planning and deve¬ 
lopment director of Reed Building 


.Mr. J. ttoss Finnic has been 
appointed a director of JAMES 
of its corporate finance depart¬ 
ment. Mr. Raymond Kirk has 
become k director nf Ihe Corpora¬ 
tion with responsibility for energy- 
related activities. 

Mr. W. M. Forrest, group por- 
suanrl dnvrinr of (he Pistllicis 
Company, li?s I toon appointed an 
rsnpHyer member of the FOOD 
;h?- apnoinirion: cn’nj.’teie^ the 
rccanvtiHi’ior of ih« board. 

Mr. 1% C. Kraiihwaitc, Mr. A. 

Mr. D. II. -Gardner oF MEL. a 
division of Philips Electronic and 
Associated Industries, has taken 
over the chairmanship of the CBI 
sion lo Sir. G. 31. Evans, who has 
retired- Mr. Gardner is manager 
of the central commercial divi¬ 
sion of MEL and is also chairman 
of the Elect ronic Engineering 
Association Contracts Advisory 



Mr. R. J. Warren has been 
aonoinlcd a director of ARGUS 
PRESS HOf.DINGS and the Argus 
Press. Mr. Warren is a director of 
Eleelrical Press and other com¬ 
panies within the B.ET. Group. 

Mr. Charles Band, who has been 
made general manager and 
director of UN .IB UNDERWATER 
ENGINEERS, is a former manag¬ 
ing director and chief executive 
of Burmah Oil (.North Sea). Prior 

to joining CJB Offshore he was a 
principal secretary in the 
petroleum engineering division of 
the Department of Energy. 


Mr. Michael J. Davies, general 
manager of Dowty Seals’ Newton, 
Powys, factory since 1973. has 
been appointed a director of 
MALTA RUBBER, a Dowty Group 
industrial division company. 


Mr. J. W. Dyer has been 
appointed to the Board of ASHBY 
and HORNER, and continues as a 
director of Ashby and Horner 
Holdings. Mr. T. Llppi'att has 
joined the Board of ASHBY and 
Gaskcll remains managing 


31r. A D. Reynolds has been 
appointed a direclor of the 
in succession to Mr. G. \V. Walters, 
who has resigned. Mr. Reynolds 
is executive vice-president and 
European area manager of Rey¬ 
nolds International Inc. 


Dr. OUc Jarleborg has been 
named general manager of AJVLAX 
NICKEL GmbH, a subsidiary of 
Amax Nickel Inc.. Connecticut. He 
will be responsible for directing 
European sales and marketing 
aclvitics, and will maintain his 
office in Dusseldorf. 


Sir Robin Gillctt, who w as Lord 
Mayor of London 1974-77 has been 
elected president of the ROYAL 
Kingdom Branch. He succeeds 
Mr. J. C. Alderson. Chief Con¬ 
stable of Devon and Cornwall, 
who has held office for the past 
four years. 


Mr. K. E . Tatum has been 
appointed assistant underwriter. 



31r. C. J. Aldridge has been 
appointed managing director of 


.Mr. Lionel D. Hook, company 
secretary and Mr. Graham H. Ray¬ 
mond. director of technology, have 
been appointed directors of EMI 


Mr. Guy J. Caudamine has been 
appointed area manager. France, 



announce the resignation of Mr. 
G. B. Adler, joint managing 
director of the wholesale division. 
He has also relinquished all other 
group directorships. Mr. K. Leaky, 
a main Board director, has been 
appointed sole managing director 
of the wholesale division. 


Mr. John Maynard has been 
appointed assistant regional 
director, of NATIONAL WEST¬ 
MINSTER BANK'S eastern region. 
He has been Manchester area 
manager since 1973. 


The Chancellor of the Exchequer 
has appointed Mr. A. m. Bailey 
to be the deputy secretary, public 
services, in the TREASURY tn 
succession lo Mr. G. S. Downey, 
seconded to the Central Policy 
Review Staff. 


These indices are the joint compilation of the Financial Times, the Institute of Actuaries xnc u 

and the Faculty of Actuaries L v V 


_ _ _ _ -M1 _ Mon. Fri. Thun. Wed. 

Tues., July 18, 1978 w w w «}r; 

Ynar rn;,-.. 
ugu - 
Capmv) J* “•> 

GROUPS & SUBSECTIONS “ “ -- - _ T^ “ 

Est Gross .Est. - 

Earnings Dir. P/E 

Figures in parentheses show number of Index X>W« Yields Yield* Ratio Index Index Index 'Index 

No - Change iMax.i iACT (Net) No. No. No. Nw 

slocks per section % CorfX M%) C orp. - - 

Tw3Z% Tam 


2 Building Materials (28».- 

3 Contractmg-Construetion (27 l 

—LO 17J55 
-0.4 17.93 

-03 2030 


5.66 7.91 I 21817 HL 02 21539 I 215J3 

8.00 198.98 19853 
A83 236.01 23549 
825 176.03 175.44 
6.95 124.92. 024.64 






i “ 

Hi/rli I 


75 : ►M 1 . 30/6 «£ ttl jBminnll 1 C.U .1 .• 871a _. /O.S , 3.1 1 7.8' 4.7 

55 iF.I*. J — ! 75 i 71 (-■ivierx jjiiinrTfisiJs.... 1 73 : «f 2,41 2.Ii 5.Q 1 9.9 

*« K.r. - 11 1(1 < Hoi ray. It j .■ _ 

100 F.l*. [ 5'7 j InH ihuruihemi.164 ■—1 '.2,64 3-Oi 2.4j 15.6 

85 K.l*. J 24;8; UL £4! I’etr.^rcii.v'i 84 —1 -I 4.6b! 3.01 8.4. 5.9 

>34 | F.P. i — | jB I IS .TImiiio I'li *<*■!. 35 .t<2.0 ■ 2.3; 8.1’ 7.6 


- £ ! 4£ i3|* 

• • i K.l*. 28-7 

• ■ I F.l*.-18/8 1 

C98 XSO 22/9 
£99.4 Y. I*. - 

SlOOl Nil - 

I- ;£10 7,9 

100 |. F.l*. 16/8 
t ’100 P.l\! - 
«43;.55 F.l' 28 7 

:| £25 25,8 

* ' ! K.l’. *1/7 

■« I K.l*. _ 

* ’ ‘ K.r. 3t;7 : 

•* 1 F.l'. — 

■ • , K,F. j 9/8 

109 P. I 1 .1*1/7 I 

99 • FJ*.. _ 1 
£98l4,£10 20/10 1 
£99 .£10 21/7 : 
L9&5 3 £50 I l .g ■ 
£98^1 .£25 I 15/91 

\lli«1 Urallurr s% Pref___j 88ul .. 

SlpiAMicI Jinnllerr, 9i Href... 91 p|— 

4fi IBoniet I2i llt-L 19E7. ■ .. BOS. * 

4fi jBaniet 121 K««L 19S7.. BOS<U 

SSl||UlrniuiKiiaiii V«r Rete83-?6.; 99 U .. 

S97ljlbi>Tt* iii% Cunv. HU. 1993.M 7 l 2 .. 

lON Kn-t Au-lin W«tw 7S kei(. Pref. 1385.^.I 103.! .. 

1 WlpiKivle-uL-t'dl liis.llrn,-e!0%I(til2n*ICuiriPref.! 102p/ _ 

8 HI 2 I hi I inlm nxh Vnr. Ileie 1S3.• 991s - 

97VE*-*-x Water 7% Jieil. ?(*•!. 19ES...^__ 1 981® „ 

23lj'Fnir\’iew L5l86^ Dch. . ._.] 24 

97). J H IlnMing* W» Pre/.-.-.I 98P 1 

87|*-)ldrt'bwiel 9ft I'rei.-.. 1 90p + ] 

WilpiMiller .K) 114 Href.-.hOiSiy- .. 

St, 'll.nlnvi 12% Nnly l\er. fu. tn.’Et-tS.i 86 : + 

94ii Mure U’Fumll log, 2n>l Cum. Pref.!94izj.| .. 

Unw, J1J I’re/..—.109|i! .. 

H/3g wih* Ver. Mkw KiW. lfl&i... 99Sg'. ... 

S iSiiiiilK , uil->>ii-. , >ee 12% Kcd. 19£7... ..; Sij.: „ 

9 .>*uli. Tyni-iilf 121S ilol. 13E6..■ 9ls t 

«7^{TvneA Wwr United. 1886 --1 48V 

2n ;w *»i Kent Wiler 12J Lh/li. 1995.2412', 


5.68 7.S8 194.64 192*7 19251 19216 

439 l 7.10 I 34244 j 34L25].MU7 | 338© 

730 I 17435 1.173.44 
7.86 16534 I 163.32 


No. o'r.u r, 


10.69 ?£k 

245.70 sifinifl 

— 26668 16428 163.96 

631 19351 190.49 187.52 

— 203.10 20334 204J7 

1138 154.85 15207 15217 

— 13730 134.82 1362 

— 127.65 12539 125.67 

339.50 338.03 340.01 

. 8028 7*9.46 79.82 

67.78 237.69 234.05 
S.41 I 18558 105.42 I 104.70 




219.31 > 227.48-} 217.37 



Br. Govt Av. Gross Red.' 

„ . . . , Tues. 

British Government joiy 

SA2.7S Nil 
S Nil 
28 F.P. 
15 Nit 
i41j Ml 
36 Nil 

108 F.P. 
29 Ml 

15/8: 30pm! 25pei.\YZ..... 

18/8^lj|im3iAr<r Bridteu-l Proceasere.. 

16/6! 361* ills fio«ikc Tool JSnjt... 

16 /ff eitnn. Spnj Lartmoudi 

16/83l*l>n' £|im Uls«tck.Rop(er.. 

L*®; lb u) (f«a>tl»ot Situs &. O> 2310 a., 
4/8l 12b ! 1'B-tlenlva.*_ 

72 I Ml 
28 [ Ml 

36 Ml 

95 K.r! 

96 ; K-t*. , 
95 ! K.PJ 
95 i K.l'. | 
30 | Ml ; 

3/7! 28/7 43rv'i 38){'nrUynisn rli 6.).. 

— ! — • lS|im' WpmjLC.P... .. 

21/7 11/8' 2i|im 2pmlLc\i-s..... 

19 Jftpai!l 24 fui>;>orr»>o « 1 V. K.j.. 

25<8 llv , tlZ pcoirkw <tr»uu. 

26.8 111 111 !»■.. A. MV .. 

26.-8. 120 107 N*»njntj Senu-es.. 

26.8 119 I 107 j tin. a. X.V.. 

8/9/ 2Spm* 28)iiii;!vi(>-]i/Te .Speakman. 

i730pin +1 
... 3*2 pm—1^ 
•| 361# t l g 

4pm _ 

l 312 pm 4 . 1 a 

' 15pm . 

123 -lj 
.1 43 pm 

13iin . 

,.! 2 pm| ..... 
- 14ii/n . 

.1 114 1 . 

112 1 ... . 
114 * ... . 

j 112 I ... . 

I 27pm; . 

Under 5 years— 

2 5-15 years—_ 

3 Over 13 years.— 
All stocks—— 

KLUimciaiimi dale usuul|> usi day lor nealma free 01 sump duty. D •'tu.urea 
based on pnwpwcun esnmaie a Assumed dlvuv-nd anil Sield a Korvcasi mvmend- 
i-over basen on previous year's eaminug. r Drvrdertr and yield eased on pmsoecnp 
ot older ofScui esnmates lor 1 S 1 S u Grass, t Kucbrs assumed. 1 Cover aiinws 
ior conversion 01 slums not nos ranKJnn for dlndeRd or rank/nn only ror resin wen 
dividends S PJacina price lo public pi Pence unless otherwise Indicated, n Isnix 
by lender n Ottered io Holders ot Ordinary shams as a “ rutnts." — Issued 
by wav ot caplialisauoii. tr f^uiinnun tender price. {1 gelninMuced. II Issued 
in connection umh roorsaotsaUon merjter or lake-over. ||!I InirnduaJon H issued 
10 former Preference holders. ■ Ailorment letters tor fully-paid), m PravWoiul 
or partly-pud allotment tellers, * With lvanadUL 

i i 

Financial Times Wedne sday July 19 1979 



j Abbey Unit Tst. Mgrs, Lid. fa) Gartmore Fund Managers fi (aKg) Perpetual Unit Trust fa) OVERSEAS FUNDS 

i^^eracjwrchrart.Bci 0 *' ,HS * KPI Pension* Management Ltd. 

SSiSaJI? - -Bff 2-3+Lffll-. P0rtfcll!f^^ 1 ,i:U j Wal VS^, CrO ^ W ? al0f:i *8.0T«cthurrbSt.EC3P3HH 01-8234200 

R3R£F_ig ill 51 = ~ 

SS& 8 £cS& ifi3t= 

ssrKQBtp=K sk 3I= ttwsada Sr = SSSsiffi 

Fen* SewcUwe__ ti - * “ alojl utfl L". _ SmallCVtPd-Kos SAJ - 

Pww. flecurity..— 13fc.9 i «4 j ?na “ G L. tall. Fund mj m3 __ _ Technology Fd-195.5 100J -0 fi — 

FCTS.HaiWiMd_1711 -S?] ~ G^Ppty.Fund_r «7 10l3 ._. - ®5«£K■-—•■ M* ..83-83“ 

TIMD. Gatehouse Rd_ Ay I efbuiy. 020656(1 2 . SL M*ry A W. EC3A 8 BP. 
AOOpt Capitols—329 3S.M-01I «JC iriAracrieanTrt—.129.2 3] 

Abbei Income_39A 41_fi-oil Ail MuSltt.lAee). “ ~ 

Abbey Inv. TK Fd.. 374 393i(|j| 4X6 Commodity Share 

Abbey Gen Tst._|«8 47 7e| -03) 4X8 Estrm Income Til— 

012833531 40 HnnS!..Hcn1ev on Thames (M9126E88 

[ + SS- 8!§ rpetufllGp.Glil_[391 42D|-1 330 

M.a+i .1 __ 

M4.R *DJ 
wit *u 

New Zealand Ins. Co. (UJL> Ltd.? 

Allied Hambro Grrapfi tal (g) 

Hatnhru H*e_ Hutton.Brentwood. Essex. 
01-5B8 2851 or Brentwood 10277) 2H49S 

m Far Bast. Iriwt- 
Hich IncowTit— 
Income Fund-„ 

£77) 21MSS ItU-AfiMClea--—.II 3.37 14.07rf+0J)i] ill 

2Sfi3aflffi=E5 . ^34ll5 Private Fun 

3$ fit Gibbs (Antony) Unit Tst. Mgs. ltd. T&h£ri r ‘ 

laii 1% 3i^f , ^ OWJeWW - EC2RaHD - SSSSaFnnd 

m 31. 3.2 StiUBSGdM *23 :d S£ "* 

450 0Ja fflHK 

TMj-OXl »B9 Govett (Jahnlfi Accum.Ututa_ 

OArfdu 714 Tr. London W«U, 01-5B85SC0 Provincial L 

FCTS.Hatwwd— 1711 
Fens. Equity,.. 1 U« 



9MORb7Fd.Ser.4_tm 6 

1*9.4 +4.7 _ 
134.1 +flj _ 
148.9 +13 __ 
M.9 +0.9 - 

Hat + 0.1 _ 
U54 +01 _ 

Wew M July IB. Valuation C.4 S, Super Fd. _j E7.OT4 

Albany Life Assurance Co. Lid GnanUaa Royal Exchange 

31. Old Burlington sl. W L. blw, S ®** 1 S 5 "**"*®- E.C3. 

--- —- 0M373Q88 PropertyBonds 1174.9 1141 

GJLBqruityFainL— 1070 117.5 _ Klw Ivey I 421 

GJ-GUtFunri • lift's lull ...... Snu 11 Co aFd.—._. MB 

ats» »— |ap g|- - Sst g| 

Growth ft Sec. Life Am. Soe. Ltd.* fSeSW.^: iSu 

sssSiSsr-j’-sarr ®B!~fo=te’ 

yMIStaW^ioJtd - Norwich Union Ins 

Maitland House, Southend SSI zis 070262855 | BAtanred Funds 

1001 -0 b — 
922 -03 - 
100.4 +0.7 — 
1115 +0.7 — 
1091 _.. — 

1019 _ — 

VEqulty Fd. Act 

PFliwf Int. Aee.— 




s—I r+naa 1 _ 1 _ v®n.uei«ion-o —|wjs 10191_( — 

cePM^^nT 4 *1 ~ Norwich Union Insurance GronpP 

_’l €7^04 j ZZ\ — POBajANonricnNRiaNG. 090322200 

nlEnAann Managed Fund __H11 M 222.91 -Oil — 

rn Excnange_ Cq my Fund- 3402 358JU -o.n — 

G.CJL 014837107 Pnwejrls Fund._1249 )KU ..... I — 

_1174.9 14A2J __| — FLmlinL Fund— 152.7 160.7) +B3j — 

Assnrance limited 9 $NoMjuitjuiy"i 3 ^ 105 , asa 1J ' 4 | — 

P>^>P«Ty Bonds 1176.9 114.2} .—| — 

Bambn Life Assurance limited V 

70UPorkLans.Loodan.Wl O1-40B0Q3I 
gMiaun- | | ■ 

!? ” pmy ’- Ki=a = 

Managed Cap. 

Managed Acc 

gj - - | - ™?3Sd 

■1=1= SS"Ssfe 

AMEV Life Aasurauee Lld-V 

AJm Hac, Ainu Rd..Re)Bale. Rolgalci4010L Pen. Prop 

Managed— 154J 143AI ._ >_ Pen. Map Cap 

AMEJ Mgdr^r_U 0 J iS3- _ Pen. Man. ACC._ 

AMEV Money Fd -. 105L1 uO _ Pan. Gift Ed^Cap.. 

AlffiA EquihiFd..^ U 0 9 1169| _ _ Pan. Gill Ed e- Are. 

AMEV Fixed Int_9L4 96JI Pen. BS. Cop. 

ASffiV Piop. pu. . _ *71 iE3. _ Pen. B.S. Acc._ 

AiraVMgiCPenJU 96 7 io£3 _ Pen D^p.c«p__. 

AMEV MedJPm.'B'97.4 uttfl Pen.DAJ.Ace_ 

Flwriplaa-KJ uni "Z. _ n.^. i 

Fixed lot Fund—P52.7 160,7) +03^ — 

«B?Sffis!s»:r l, «u”*1 =1 = 

Phoenix Assurance Co. Lid. 

4-5. King WHUam St. EC4P4HR. 01-0209070 

WealtbAM-1111.9 117.91_[ — 

Ebr.PB.Att._1 77A I. I — 

EbT. PfLEq-E._ptl Uhl_ - 

215.01 ..... _ 

2773 __I _ 

2173- - 

Prop. Equity & life Ass. Co.V 

118, Crawford Stmt. WiH saS. 01-4 

H. Silk Prop. Bd_{ U2.4 [.._.. 

Do Equity Bd- 74A I_ 

Plei Monny Bd_| 1492 I _... 

Allied J-t—_- *5.7 

Brit. Indb.Fluid-*- 67S 
Gnb. & (dc._._.^. 37.1 
Elect. & led. Mr. 33.4 

Allied Capital_718 

HawbroFund 1041 

HajuhraAec. Fd._1115 

Idcojbc Panda 

High Yield Fd_f70.6 

High income65.3 

Ait EaJncL-138.0 

ImemaUonal Fonda 

Inle relational —; ubB 

Par Mir Fund. .—{43.6 
Secs. Of Amen rs_ (543 
UA A Exempt^—.[%.0 
Specialist Funds 
Smaller Co.’s Fd—p&4 
andsmlr. Co's Fd. - 
Met.Min. tCdty..- 4L0 
Overseas Earnings. 57.5 
ExpL Smlr.Cj's—4P22.2 

lifi Gibbs (Antony) 

39.7n -02 529 3. Frederick's Plac 

35.7 -01 4.95 01-588 4I1L 
7fct -0 3 442 (aiA.G. Ineom**-— 
fm <a)A.C.CWWtBn-. 
127.9) -0 6 [ 454 (bia. G. Far East*-. 

Private Fun 
ArCnmltr. Fund, 
TechnalMB 1 Fund— 

in WecadlUv Unit T Mgrs. Ltd.9 (alibi Artathoot StJCtxrlties (C.L) Limited King & ShlxsOn Mgr*. 

5 Jj -0.S 9.05 Wanto+w H 3 la Landaa Wall EC™" ffifloail P-i> ' 5? r=Wl **■BW WIT* i ChannC Cross. St Helier. Jersey. lU534i73741 

394).( o.Tl B ^ jQ * L v ^° ca Wa v £ 2 „ *¥21 Gap.TsLfJerseyi—)117 0 1210 ) +lfl). 403 Volley Her. St, Peter Pnrt. C.nwy. riWIU MTI» 

223 " D - a rTI _ Ncjt dealinc dole Auciut I. lTBomasStreet,DouglasI.U.U. iOBNi4fiS« 

iS3 n -4 H? EartAIna.Trt.ini.[13*0 12501_ 3.M UilU-Und aery, 

“»l+ !}■« _ Next sub July ai. gut Trust ■ I a M ■ 

37 H —02 4 M Aastolum Selection Fund NV GiK Fnd Gurrau>y[L936 

6*3 -as 3.40 
593 -0J 3 46 

2923 +02 130 
25.93+02 250 

—>1 “•'jj Extra lawunc. 
■•-- 1 Small Co s Kd 

t Ttomas .street. Douelas l.u.U. , i(JK4i4B 
J 3.M tiillFundfjeryes>.|U9S aairt+DiBI 
Gut Trust lion i ,RM 5 
f telle Fnd Gurrmey|L936 

e gt ln<l. Gen. Secs 7at. 

First Sterling_10814 18241-023 — 

J — FintlnU.—— laU.SI US(W- 0 [ — 

U.M. iVKKl-M 
9 Old)+0021 ULi 
1073 +0.5) 12.i 
9.40vj . ...| Ui 

- 12.00 

ffhldtJnfrM T? --U4aj Ig.g - 1 XM 222.BiahopBgalc.ECH. Q ]^i7B533 


MB ®G^Sffi8t^^Sa en °* ^8004433 Pn*dL PortfoUo Mngrs. UAf «*KbKO 

643 -0 21 3 40 Market Oppertnnftles. c.a Insb Youifi A iwl- Govt. Sec*. Tat. . _ - 

5931-OJJ 346 Outhwalte. 127. Kent St, Sidney. First Sterling-.10814 18241-023 — 

2923+03 130 US51 Shares_| SUSt52^1_J - First Inti.-[3*5.23 US («-o3f - 

25 M +03 250 Net Asset Value July 13. _ . 

i mu w—_ jj , ,__ _ Bank of America International SA Wemwort Benson Limited 

—j U 9 itacncal Invest. Co. Ltd.v lyHC) 35 BaiileN-anj RcyaL Uarmhirtiry G 3 >. 20 .FenehurehSL EC3 0I4S3AHX) 

1 050 44,BJoomabuiy Sq. WC 1 AZRA 01-823 8SP3 ftldlm^stIncome-liCSUt07 inn_I 7.75 Eurinvest. Lu*. V. L084 +4 3.33 

Practical July 12 — [1558 lfi54( ..._.( *26 Price* at July 13 Next ml), day July 18. f.nernser tnc- 64 4 68.1 +01 4.11 

A«um.Uttirn- ^3 233 9 j .._-[ d26 Bek. of Ln d n. & S. Amelia Lea. *° l 1H 

01-5885020 Provincial Life Inv. Cn. Ltd.v 4M8,Qu60nYtBton*St.llCA OJ.-03OS313 KSlnU.Fnnd_1 5 ESU .45 111.’. 2 M. 

to Zaa.Siahopwgaie.ECJL 
LB7 Prolific unite. 184 4 

High Income_fill 

t-. - — m «i7RSM Alexander Fund—1*047* - I 1 — KK Japan Fund 

tTi. oaaifiu a»ff *aUw July i K.B. FS.Gwth. Fd 

s. -B44 -*4+gH Sg Banqne BnixeUes LamberT sitawt Bermuda _.J 

-RI16 1195) -BJJ 7JB - b«, oe j* Resencc B 100O Brussels •VmfondstDMi —| 

mwitn PmdL Portfolio Mngrs. U ±f (aHbXc) Rema Fund i.«W 9 i 7» 35 Loaaoa w “ e 3gma l ' 0li 

JIM_ 4 M HolbontBars. eon 2 NH . 01-405k= Barclays I’oicortt InL (Ch. IsJ Ud. Lfeyds Bk. (C.I.) VfT Mtrre. 

m3._- 463 PrototisJ-11255 1335}-DA] 4.46 E Chartn gCross.SLHeUor.Jrav. 05M737U po . Box 105. St. Heller. Jersey 0534 2 TMl 

Zafl 7M. Qnilter Bbtxagement Ca Ltd-V UniSStarTruSlr^aow ud-."i 4 lP LlwdsT^ttrww. |572 ■ 3 1ZI 

-lh 1.98 TheStk.Exchange.EC 2 N LUP. 01-5004177 GnibordTrusi-btWDoa lffli5}+023 SM . ext dealing date nugust L>. 

§| _ i? |Jf aiasiSLS -na; ^ = i SI .. 

fLM ~ 42| Reliance Unit Hers. Ltd.? " i^fmA^^uwt^shtrt _ WW i^ uaydsinLG^ib IVtuooi ‘ j*m ....iPaio- 

Reliance H*e, TunbndgeWella. KL 089S222T1 Po.AML-Min^ J B2 -05 L70 Lta>dalnt.lBc«»ine.U3BBD JUs4 1 6 40 

UK AtgrE. axu. Opportunity Fd_167 2 719I+06J 5M Do.Gru-.Parllic_U 0 67 7K_ — u 6 G Oman 

01-6288011 &efcSrTfAcciT fo J 4fiJ-OH 600 l>o. Inti I ora me_ S97. 32 . 7 } 820 M ® u taroop 

93.91-0.41 422 SekfordeT-lnc._EcjZ ffi.Jj -fUl 600 Do-I wlManTit....- 449 483&I_ 910 Three Quays. Tower Hill EC3R 6B0 01436 4S0B 

Ridgefield Management Ltd ^^^ga^Commodity 2 ^!'!^. 1 '^ A^rtEx-JuVi" T.JS’ffl* - 

'®“ 3840.Kennedy GL. Maacbesaer 081=368321 PO Bo.42. Dau S l>a.l oM. 0«+=»ll g*W5*- J «*r ^— WS93 u£A I - 

.7^ Mass* ^sssss^w i«a=H = afl^u 

IS Rothschild Asset Management (g> “^SSKlSS %s£«-sio 2 aSamnel Montagu Ldu. .Vgts. 

35.01 -O-M 632 72-80,GMeMUtelldL. Ayinbuiy. . 029659*1 Rridnc HtnUemMll Ltd m.OUl Brr.a«J St.ECC 01-588SAW. 

IS fe&WESfeBS m M iil SLSr.. 5 ®— *5stM-oJ KS 

9 5 840+01 4.11 

5FS1524sJ 163 

&ESU.45 ._.. 1-95. 

si: S3 5 90 ora 

5US1177 . ... 0.76 

5US4.9* +0C& 182 

I BO 19.90) . 824 

n paying agents only. 

Barn _ 

B +OJ] 475 'Aan“- V 
+03 4.99 BtngH.YL- 
+03 589 I Accmo-Onital 

2 2 tJ KS.Wt- 
*■“ SSSSSS” 

o.V Anderson Unit Trust Managers Ltd. Ln-ABrak-Jab 

01-4800857 usFenchiuehSt.EC3U8AA 6239231 tAccnmPnllith 

J -.-•[ — Audemn U.T._(50.11 53.9)_| 438 Gaar SS^ 

I - Ansbactur Unit Bfgmt. Col Ltd. 

SS&C& 5 LBU ilg® rd is boSBSVUSMSXKUS tiui. H^ s ■■■* 

, .7 " I ThanniSL, Dougin*. 1 a6L 06044856 1 *“* A " SL 1 * 

Property Growth Amt or. Co. Ltd.? iNojjbLtWid 

Leon House. Ctuydon, CBS 1 LU 01-0800600 ]BtMo °dily Fuad .]!*&• 

Arrow Life Assurance 

30. C abridge Road. 

aaKKptfgLR; & 

Property Fund_ 

— . Property FUod (Ai 

148.9J -—I — Agricultural Fond 

— •I — ■ jEStffi!!-1 —1 Apir. Fund i Ai— 

.| — Pen- D-AJ. Arc-J 1C35 1 — | — Abbsy N'M. Fund 

-—I — Hoots of Oak Benefit Society f**-**^™-** 

15-17.TnrirtoekPtoee.WCUIflSM 01-3875020 lSSSSSmtSluu: 
D1-T4M1U HeartaotOa k . .. , [8 63 3&6[ —l — Equity Fund__ 

.I - Hill SannudL Life Assur. Lfd.V gSSUKgaS^ 

- 1 — NLA Tw, Addln ctmbs BA. pgr. 01-68643S5 M«neyFund(A) 

Arbathnot Securities Ltd. (a)(c) 

37. Queen St London EC4B1BY 01-2365281 

I — Extra Income Fd—1104 7 UZH-03 Um 

_ Hlrt let Fuad-WLl 44.3+0.2 932 

_ eiAccum. Vnilsi._1533 593)+03 932 

__ t®r% Wdnrllts.tej 593+03 932 

Prererence Fu niL.S.9 25Jo|_ 12 . Sl 

lAccum. Umcai_1373 40JM_ 12 S 0 

si*_| 4 _ 2 a Guardian E@*l Ex. Unit Sfgrs. Ltd 

- ... Royal Exchange. EC3P3DN. 01-028801 

. CO. Ltd. tag) GuardUD To--190.7 «.9|-0.4| 43J 

01-823887* Henderson Adminstntionp (aHcKg) 
1760).—| 9.03 Prtfuaor pT AdmiiL. 5 Rayfeigli Road. Huttoi 

BranMoed. Essex. 


PBn-Mg(LFd^-FX_P332 116.7) 7_..| _ 

BorcUys Lite Assnr. Co. Ltd. - 

333 Rovtord Rd, S.7. 


m Managed Uniti_ 

“■ Managed Series A- 

01-5915544 KnvdSc 

+13 — 

+ 0 j| — 

- 3 +03 






Do. Initial . - 

So. Initial__ 

Money Pens. Aml 

Do. Initial---- _ __ . _. r 

•Cumat unit value July 18. Peoa. Prop. Aec__ 

Beeblve Ufe Assnr. Co. Ltd-V Imperial life Ass. Co. of Canada 

71. Lombard St.. Ed 01-0281388 l«up«rial House, Goildtord. 912 

Blk. Horae July 1) 127.67 I_I — GrCKd. JulyH__[72.8 793]_J — 

Canada Life Assurance Co. poh^J “ 

34 High SL. Potnn Bar. Herts. P-Bar 511=2 —[*? ' JS?—I — 

MBWnld: 1-3 E 

gaa. Managed Cap- 
Pna. Managed Ace.. 


Pw. Greed. XetT 
Pens. Equity Cap 
Pens Equity Act 
PnaJxd lutfw 
Pena. Prop. Cap_ 

Pern. Prop. Am___ __—, — 

Imperial Life Ass. Co. of Canada 
Imperial House, Goildtord. ' 91255 

Actuarial Ftuul- 
GUt-edred Fond—. 

GIU-Edged Fd. (A)_ 

OHetlrt Annuity 
WnuneeL Annty. 

Prop. Growth Pendoni U Annuities Ltd. 

All Wther Ac. Du. . 

o All Weather Cap.. 


Pension Fd. Ut*. 

Conv Pros. Fd. _ . 

Cn». Ptis. Cap. 0 
Man. Pena-Fd 
Man. Pens. Ca 
Prop. P*hb.FiL.._> 


Provincial Life Assnrance Co. Ltd. 

222. Blabopagnte. EC4. 

Prov. Managed Fd.. 

t»r% W’dnrl.L’tS. 554 

PrefereneeFuntL.^ B.9 

lAerum. Units)__ ST2 

Capital Fund__ 29.6 

Commodity Fund — 594 

lAcetzm. Unit*'__ 85.4 

tlffS W*drwLU.i _ 51.9 


Giants Fund - . M5 

lAccu m . EnitBi—— 152 
Growth Fund— — - 34S 

lAccum.UniUi__- U4 

Smaller Co’s Fd_27.6 

Eastern & ImE FcL. 264 
16% Wdnri.UttJ— 20.T 
Foreign Fd.—_ R2 
N. Amer. It InL 



[Extra Inc. 

”1 sat FuSocKStfcTU.—tM .2 
i 5J1 Oli It Sat- Res- 127.7 

1 Thonw* SL, Douglas. IaJL 06244856 ' 1 ** 

n2 i 5SS.MS5-.^ l "^i im Uo>d s loLt n rame.lSx=IIO SS3 :'- l 640 

5w5l=Si! AM S:c:mS3MFaii_ 

N.C. Inti. FA (Inc .1 

2*-S 437 KjC. IntL Fd- (A«j 

29JJ +03J 2-92 NXL SmllrCtvt 

15t2l -0 J 
990) +2. 

___ j. ApolloK«l. July I2_(SW63 

Jopfeal July IS_11 M 

.I — 117Grp July 12. .. R'SUS 

t *■+ 117 Joraev JaU 12_K5U 

--1 0.87 ii7Jr*yO-aJui> I2-IU107 

50 051 . 5.74 

12 82-053 0 99 

U52 2 05 

5.61 +007 0 75 

12.48 - - 

-Ai ?s mSS^BPLl .! 7« wssaswaiBs 11 5 u 1+o«h §?s 

_ _ 5JX oBIBIkV «3453t In SrS2ir r 5vr^|i544 . iSSra IS mJWjitt&a* ^ -l - 

-«3=sa IS SSS^ 14 -™ “ “SSMtiPSadSl-aif 5 BR==irtl|H is = 

Sa+fla 4% Rowan Unit Trust MngL Lfd-vral « ■—1 ?|g 

S.J9 City Gate Ha&.FlniburyS«6,ECa 01-006 1066 Hlrt3 n LStfcTri.. “ K 97 tS—j 12.00 » ,, 

> ^ isassisszisa .ssiaJ s.s sxsszzTXssrr-* - 

hth+ihithtittudviw jBSjS-^*».3gltJi a:::::: ]! MJ 9SriK«.^r J J5ia-L M gf 1 } ? . u , 

— -.. .A*»—-aLKSPSL. 8S5nfti==K « :zi iw Brown Shipley Tst. Co. Ueroeyl Ltd. ^ HamiUor- Bnnda, 

18.7 +04 3.04 Cabot-- 

«i.SeI -03 2 JB Internationa 
-48.7a -03 2.85 Wrtd-WUWJl 

ill in SSS&T 

54 - 1J9 North Amer. 

90.1 _ UO N-ArnGnUi 

34 i) +oi] LH cabotAraer. 

1317, n Igh Molbora. VC1V 7N1_ 

Archway Fund_1HJ3 8 

av July 13- Next sub. 

« Beech St, SCZP2LX 
lb) British Trust— 

MU 1 In fb) British Trust 
,. dny’rjy M. 

iiUnUir.i fb)Cantal Trust 

Gilt Fund 2fl__ 

Property Fund 

- 1193 — 

1104 _... — 

1234 ..... — 

ms . — 

Fxd.LnL Fund__.(942 994)-. 

Prudential Pnulona Limited^ 

Cannon Assnrance Ltd-f Irish Life Assnmnce Co. Ltd. ' Prudential Pensions Li 

l.OlroMCWy.. Wembley HAB 0 NB 014028898 13. Flnabury Square. ECX 01-8S882S3 Molborn Bara.BC 1 N 2 NH. 

Equity Units-1137.19 — +0J« _ Sloe Chp. July 14_ §4 7131 4A0 EqulL FdL Juno 21.[£2449 3 

rr„ -xn. — Managed Fund-Z264 2JA7}-— Fxd.lnt Juno21__k2B72 3 

1232 +006 — ExontpLMan. F«._. 1034 109a __ — Prop. F. June21_(£25178 1 

HU 4 hu — Prop.find.July 1 __ 1184 2690_ — - , 

1344 -hum — Prop. Mod.Gih._|zv7.7 20*3_ — Reliance Mutual 

_ "^2 “ Bing & Shsxson Ltd. Tunbridge Well*. Kaat 

— 58.Corubm.EC3. 01-0239433 HcL Frop.Bdft- 1 19*9 

Equity Unit*- - 

Property Units. 

Equity Bond/EjcOC-. 

Prop. Bowl /Exec — 


Deposit Bond, 

Equity Accum 


Maid. Aceum. 

2nd Equity 
2nd Property 
2nd Mans 

2 nd 

2nd Bq. PanaJAcc. 

2nd Mgd. Peot/At 
2nd Dep.Pvna/Ace. 

2nd GUt PenalA cc 


Current TSioe July 17. 

Capital Life A as nr anc ef 

Do. General _1314 

Do. Growth Act-_[407 

Do. Jaromr T*t„|B5 5 

B8.Cornbm.EC3. 01-023 9433 - 1 *"■* '— 1 — Baring Brothers A Ca Ltd.* (al(x) 

BOIMlF,1 ^fSiiiS^S»e 3 j^ii'“ l Rothschild Asset Management BRLaadenhaiiSL,&C4. 01-6883830 

Gort.See.BAlZ_jm940 12M« -L.I — SL SwUMnaLana,London.EP4. 01-8284398 StranouTrt._(1*6.5 173J] I 4.46 

N.C. Prop-IU74 1258! _.-.) - ftkAmmm-_faoM as| 4A* 

Langham Life AssvranorCii. Ltd. KCPto > -1»« *** — < ~ Do - Accum 

Laogham Ha, H0lmbrookDr l NW4 01-2O352U Royal Insurance Groan m 

Lugbam‘A - Flan—1623 ,145 1 — NewHaB Plara.UrorpooL 0512274422 

i «d= y* +3 -" ~ b-ss?^ 

Legal ft General (Unit AsanrJ Ltd. *!? ^ 

S5STST sassf^ LB fe EC 3 P ^SS t8w 5SSSSBStJK =\ IS 

ax a W^f 5 ? 86 ® SIJ^I = A'a*t sub. day ‘July 25. **Angust X 

Do. Arcun.-(v74 io 2 jI—I — ~ Bridge Fund ManagersOtaWc) 

y>*4 -04 w Royal Tst- Can. Fd. Mgrs. Ltd. 

=-!= Bmhws Uw lcm. L td- MOWfl IglggEaBSftgB;! IS JH “?|f 

r._ IM L'nJcaroHa392RomfordBd.E7. 01-3345544 ibilueomsTrait_|2t5 2&4]-0J 7.72 Inromr Fd.--(69.6 734uf ( 7.66 

LO. lAtL Unicom America—134.2 . 3fLM+0.41 131 AnSeeuriraTniat_kl2 55.4-0.4 534 Prices at July 14. Next dealing July 3L 

OX-2476933 Do.Aua.Acc__ 76.9 «3J|+0.9 1.77 iblHlgb «rtdTst_P92 3131-02 834 ■ Wt, 

._... - Do.Austinc._ 604 6543+07 1.77 luWal Save A Prosper Group 

_... — Do.Capital-bkfi 72M -02 4.42 ^- T 4- Great SL Helens, London EC3P 3EP 

-- - Dogxggpt TSL— - ma.7 113-21 —0.7 644 } S - C . h J* ,t *S5^ 08-73 Queen Sl. EdroburKh EH2 4NX 

. - Do. Extra Worn* .. »9 3021 832. [nteUov.FoDd___.IS74 94Jd| ....{ 680 Dealings UK 01404 8H0 Sr 031-238 7351 

: ::. z ffi:S3E^S“ “3 *3^ I:4f 8 * ve * **”*«* securities ialv 

.. Do. General__ J15 34.11-03 638 85- Mil k S t . BC 2V8JE. 01-6067070. iww«>ia»al fmufa 

thji Do. Growth Ace. 40.7 4?.i -07 423 Kyy Energy lo~Fd. _ 77JJ 812)4 -0JU 3A1 Capital__ B72 md+tll 3X1 

Da loramc Tit. B5 92.13-02 616 Key Equi5*G«n... 883, 725) -03) 4T9 YPn- -Si IS . tS 

01-WSKC2 -Dg. Prt Ad*. T*L.133.7 I4flfl _ .. 523 *KeyExemfiFd. _ 151 0 3S<tfid ....J *31 jX/ 

-1 - Prices hi June X. Next nib day JuU 31. Key IncomcTund- 07.2 at l3 -O.jj AJ0 y™v.GrowUi-i«.7 73 5) +0-) 1.95 

-—I “ Do. H eoovaxv-_J«J 46^-0 if 5« Key Fixed InL Fd._ 606 MA -i-8.a HJK lummrtaf laeomo Fund 

- DoTnuteeFund-U2-0 12x13 -0.4 537 Bey Small Co's Fd-|97.9 1043)+0^ 686 High-Yield-1534 574|-02) 724 

5? H? Hein wo* 1 Benson Unit Managerof mgb income Fund. 

mtm EMtSK=:l« tt eM-e^ua °i"S a l5SP •ffldS U 

-— 1 Baring Brothers ft Ca Ltd.* (a)fx) *k-kcnitFd-Ac__ [1036 312.5 - 2 .fi sm vjl fws 

»* 68. LeadenhallSL, &C2. 01-6882830 —-j 442 UKEqully —. 144-0 47J[ -0A[ 5.06 

01-8284398 StranouTrt._(166.5 173^ .| 4.46 HfffSggfcj.. T. . . 501 — ; L 71 - Overaem FundrtiJ 

1 Tin in-iin bm* jkjI I usA L & C UBlt Trust MatU f emeut Ltdf Europe.________ 1874 94JU+0.7I 322 

! J^a 4 The Stock Echaage. eSTiHP. 01-988 2800 j agaa ..-- fea lg| ^ 

612274422 Bisbopsgate Progresdve MgmL Ca9 lici^bGeaFdi.^u 7 l£^ m} L79 tom ft wb 

l« 41 — R Bishopagale. E.C2- 01-5886280 LawSOM Sees. Ltd. VfaKO Commodity-J782 S Sf t2 ?l J'S 

5’£^?f^.TJiS5 18 “SS7 rn^lai Im 37,Queen’iSL.LondonEC4RIBY. 01-2365281 FtomiaiSenZZllnB 762]+oJ| 302 

5|-1[.J 6A8 High-Wnlnican Fundi 

47.U_.mJ 648 Select InternaL —BS9.7 Z74.M +l_3l 721 

-1 “ DO. Recocuiy_ *ZJ 

——I — Do. Trustee Fund— 112.1 

DaWldwidtt T*L __ 49.8 


088222271 Da Actum._723 

-1 — u^iiu-w r. 

K w5smM T- SSXSi T=m m L ft C Unit Trust Mmiagenient Ltd.f e^T. 

_ * Next iua day July UL The Stack Echange. EC2S 1HP. 01-888 2800 ffB™— 

0512274422 S° P ^i^ gMElV ® ll **^gg* tKft&ioSPtt'.W* 7 lS.^ 179 ***** 

-P364 . 1443 ) + 3 .«[ - BBUwapiaRCg. 1*"* Sees. Ltd. ffaHe) 

ler GrtrapV AeSTtJ^jW?:® Im 37,Queen-IBL.LondonEC4R1BY. 01-2365281 Fto^b 

C^atoo House.CbapelAchW*ton 0M2285U + 

XeylnvMt Fd___l 100.98 | ..._.l — FixadInitial_1167 

PacemakerInvJ^L. | 10UJ7 j __( —' Do. Aceum_1193 

Charterbense Magna Gp.¥ ni 

18.Cbaquara&q_UxbridgeUB81NE wiy l ManuredInlUal_U7.9 

Chrthae Energy __..Q76 596) — Do. Aceum . --1203 

Oirthae. Money-.29.4 3l.n_ — gwr^laltUl-^. 993 

nuthae. Managed. 18.6 406 _ P°- ^S“5v~=rs 

Chrthse. Equity._J4B 366 _ — legal ft General (unit P 

MngiukBtd Soc.__ - 153.6 . — ExemptCa*hML 

Magna Managed— 150.6 _ _ Do. Aceum. ___ 

City of Westminster Assnr. Ca Ltd. nS B Aj £S‘ ty - Inlt " 

Rlngstaad Uoumu 0 Whlteharie Raed-' Exempt Fixed Ini 

33:3 = 

Deposit Fdf.___1236 1302 +03 — 

Ccun p_Peni.Fd.T_— 2015 214J _ — 

Equity Peni-Fd_182.7 192.1 -03 — 

Prop.Peua.Fd.* __ 2226 2352 +06 — 

GiltPen*. Ed-937 002 +02 — 

DeposJ'eos.Fd.t—[9B.9 1043) .—1 — 

‘Price* on July 16 
fWt+Uy dealing*. 


_ I 1I]ii9tbJ 

and warrant. 

Croydon CRO 2J A. 
Vert Prop. FUnd— 

qultv FUnd 
arm! and Fund 
Money Fund 
GUI Fund 
PULA Fund 
Pen*. Mn art. Cap. 
Pen* Momy Cap. 
Pena. Money Acc. 
Pena. Equi‘rcup, 
Pen* Equity-Acc. 

Fund currently e 
P e r form Units_— 

Froper^inltui—1993^ H Z Schroder Life Gnrapf 

Le*al A General (CnH ftratomOLld. EnterpriseHonao,Portxmoulh. 

UL5I_— Equity June 27—.1 223.9 

Sjj ~ _ Equity 2 July II_2193 

1264 Hi _ Equity 3 July 11_1196 

m » _ _ Fixed InL July 11 _ 157.2 

SS ~ _ Fixed IntSJuly 1L. 147J 

UTj ““ __ InL UL July It_1356 

126 J _ K&SGUt July 11_ 242.0 

TTttj K&SeJuly 11_120.0 

101J_ _ " Mngd. FU-Julyll_ 13Ut 

ini a] ‘ • _ Managed Julyll__ 144.9 

Legal ft General Pro*. Fd. HgrtLLtd Money 3 JuJsr U—pH.T 12 
1LQneenVlrCorlaSL.EC4N4TP 010480678 PropertyJiflyU— 1H6 U 

.I “' Do. Aceum__ 

*4 = ^5SSr tett " 

Bridge Fund MtaagersWnMc) , ^— & - J _ - ¥i7a —, ^ 

King WUllamSt,EC4RBAR 01-0234051 &S^U^l“b4 7 2*3 “1 050 

American 6Gen4.g.O 264 1.44 K'fc 47.9( Til 1177 

Income*—--M-9 55A +1.7 6.46 **iAcaim.Unltxl_^.S 07.2 ..Z} 11.77 

Capital toc.t-3M MJ — 337 D«,L jflbm. Tura. TfWed. TThtn*. «PrL 

ErenSt ' S?® ia6o 548 * Geoentl Tyndall FundV 

Toternll. ioc.T_17.0 183_ 3.41 16 Canyn*eSo«d. Bristol. 027232241 

nc>.Aec.t_ _ 18.7 39.9 ._..J 3.45 n)«j«ihi» ia - . wry I 533 

Dealing *Tnea. tWed. CThui*. Prices July lAccum.Unit*)_mt TfiS I _ 

1111210. Next mb. day Ang. Is. 

Britannia Trust XCBmagement (a) (a) Leoniae Administration Ltd. 

3 London Wall Builtllngs. London WalL 2.DutoBL,IxmtkmUTM6JP. 01-4865001 

I^utdon Et2M BQL 01-6380478/0479 MoD h t .... - —- 1«3 791[ - |3j 5A1 

Autu_.[713 7671 ~0A| 530 LaeA wantL . - -... |8Z3 866| -03| 437 

- 2-™ Select Income_P3J » 

: L» ScfltUts Securities Ltd.V 

■ 13 ScotUta__t»3 • 4U 

• iff? Scotyield_B62 53 

' i£t 7 Scnubares_P6.7 hi 

j+j P.O. Box 583, St. Heller.Jern-y. 0534 74777. ' * ' ' ^ 

^t3t*9B2H! Sterling BondFd ..[£1016 1030).| XI35 phoenix International 

v< , Butterfield Management Ca Ltd. ro Bo* tt. sl Prter port. Gurrmry. 
733d”"” 7.66 P.O. Box 105. Hamilton. Bermuda. Inter-Dollar Fund_ 1*2-31 2501 ( — 

kuding July 3L Buttress Equity_I2J0 3381 _] 176 

1 Pnces'at'jnly*17. Next nib. day August 5 ” Quest Fund MngmnL (Jersey-1 Ltd. 

I EC3P 2EP Capitol Internal [Dual S.A. Pi* Bo« HHler.Jenwy. l>U42744t 

EH2 4NX +_ Quest Stic Fx.l Im. | Cl )...)-_ 

031-228 7351 SiJ!, KSSfy? SSSf 1 ^ , Quertlntl Sci. . . SCSI . - 

l,i M | M i| tapilal InL Fund- .1 SI-K17A3 |-1 — Quest 1 nU. Bd . _| SUS1 1. — 

IUCK LULT Charterhouse Japhet Pnre* at Jnly I2 Ncxi ilealiuK July 10. 

- , ,, _ __ L Pater mister Row, EC* 010483990 iri ■■ I .1 1 p _ . - , . 

was 15 Ad trope_UiSLCD 3934 . 544 Richmond Lite Ass. U*L 

1W Adi verba_DM50J9 SIM ..... 500 48. Athol Street, ricwRlas. l.O.M. 0604 33314 

73M+D-1 Foixtak-0X22.70 MA —. 5 81 .*m»e.SII«frTniiLll05 5 1081 +0 3) - 

Fondle- DHZ230 ZL5t .._- 555 Richmond Bond B7. 1760 185J+0fll0« 

575 -Art 7 J» Emperor Fund. ___. fUjg91 101- —■ Do Platinum Bd .. 1198 1261 -17 — 

Hispuno---PUSN47 4Mfi . 193 Do.Gold Bd _.104 9 1104 -0» - 

6Mrf —o a 872 Clive Investments (Jersey) Ltd. Do.Eta.Brr.tcBd.... 1737 *0 7| u 26- 

506 S^^GTrnseSli " 11 "" - 

ti ll P O. Box 157. SL Peter Port Guernsey ocJntl.Fd.t_ 

m3 In3 IutnI.Mun.Fd_1164.0 17BJJ ....-I — O.CimCoFdJ«i30 

815) +00] 129 Delt|lGnrap ^ S P 

w.ol +0.41 3.96 P.O. Bex 3012. Nassau. Bahamas. -- 

76^+05| 1.70 Delta Inv. July il_.|SL7J U2[-1 — 

762( 3 m Dentocher InvefilxnenLTrusi ■ Pmrn | _ . — ... M . . 

__ Postfnch2885Biebergaiae6-106000Frankfurt. T™“ ****” 

2 2-9 + ^U 25 Concentre_ |dh 2BH 21301 ... J — P O. Box UN. Royal Tot Hac.. Jersey. 053427441 

sM-0.21 7.45 SS55SSaKC.-.|SSuD NTfi-ojal _ K-5tTw,rBt** ’51 !§? 

M lfi Dreyfus Interamtinental Inr. Fd. H ?uif m!n«h deuh2c Au'clat L - 

3.91 P.O. Box 14371% Nassau. M«w 

J-57 nav July ii_pnsMX Ha).I - Save ft Prosper Interaaiional 

!'2 Eason ft Dndley TstJHgUrsy.Ll I Dealing m; 

+7+3 ■—I 7 'S P.O. Box 73, SL Helier, Jersey. 053120591 07 BrtKlSL.SLHeber. Jersey 0534-20591 

ib. day July 20 ED1C.T.-P220 1300) +1.0) 3.00 ru, &*i t vav 

J . . CwmknnJ DfllilimflE UI V W*. FXd. Il»L*'.__™l?.i7 9 72l6 . 7.41 

nsui+aii 3i 

+0J 39 

733+021 1-9 

66001 —0.21 

O.CEqFr Junr3U.|522 
OCJnc Fd July3...152.6 

O CSnU.Fd.t-a 123 


O.C. Comawdity- 
O.C TAr.Comdty.t- 1X2583 

555) ... . 294 

1623 . 721 

13S(- 130 

1552 .... 3-2S. 

1444 . 447 

Z7441 . .. 073 

■Prices on July 14. Next dealing July 31. 
tPrices on July 7. Next dealing July 2L 

Royal Trust (CD Fd. MfiL Ltd. 

P.O. Box UM. Royal Tat Hac . Jersey. 053427441 

R.T. lull. F«L__.mjS932 9 71) .| 300 

RT.Int-LU»-.iFil.|9l 951 .I 3 21 

Price* at July 16 Next dealing August L * 

Save ft Prosper International 
Dealing in: 

37 Broad SL.SL Helier. Jersey 0534-20591 

1L Queen Victoria SL.EC4N4TP 01-0489678 Property JidyU.-_ 1555 

aJOr 1 - gSSlifei 

life Assnr. Ca of Feunsyirania MnPnCpu JuiyJl_ m 2 

3B42 New Bond SL,W17(ffiQ. 01-4838395 

1ACOP Units-[907 Ulfi ..„) _ , »3 

Lloyds Bt Unit Tst Hngra. Ud. Prop, feu. Cap b^, ».o 

S^* rtSL,B< feL7 mi £i 

Exempt [96.7 1A35| ___4 7.98- Money Pen. Acc. SL 96-2 

123 __ 

163.9 _ — 

J6L4 _ — 

1273 - - 

an-A—*4 - 

101.71 _... — 
106 J 1 

Overseas 4—,L___ |961 

Scottish' ffMotn' Group 

PO Box 9(0. Edinburgh EH165BTJ. UV895BQ00 
Inv. Cash July 14 

ExDLAcc July 5 ——, -- — 

sxtnincJuiys—nsu U6« ZJ — • 

Capital Acc. ______ 

Comm & Ind ——_ 
Commodity ______ 

Domestic _____ 


Eatra Income ____ 

Per East_ _ __ 

Financial Secs- 

Gold A General_ 

Inc. 6 Growth _____ 

Ini’! Growth- 


Mloerals.-— c. 

N«L High toe . .. 

New Issue—-- 

North American __ 


Property Shares _. 

Shield. . , 

Status Change- 

Univ Energy_ 

01%8(M5MM79 - ' I5i ' £il 

II UoydsBk. UnitTaL Mngr^ L'lf (a) 

ill s| SSff.SSilS* w ‘ 

S3.9I-0-4I 451 ffitivi-ile^' 

iS 1 ScUesineer Trust Mngrs. Ltd. (a) fell Karobond Holdings N.V. 

- 140,ajutbStraeLPortdns. (0306)984411 HapdeL kade SA WUlemrtad . Curaca o 

Am.Sempt_ m " ri91 +jiii 7M I1 M*«- HJgP JIj N wr W 

Am. Growth 


luternat Ur.-*-7.29 

Fw£astera"t _.._.fe32 

40JH —0, 
122.0 — 0 . 

loi First (Batocd.)-(502 

u in DO-CAccumJ. !“• 

3 oo Second (Cap.) 


<ii uo-iauxaiuu., 
JJg Third (Income) 
aS Do.(Aceum.)- 
7 „ Fourth (Ektoc 

Intnl. Growth— 
im Inv. TiL UnlM— 
Market Leaders 
“ Till Yield' 

2-5 Pret A Gilt Trust— 
Property Shura* 
SpeciaistL Trt 
P-H uS- Grib. Accum. 

M 25 Ptop«rashw«r~ 

Qd Jj SpeiSfSlL Trt„ 

J2L7 -02 614 

2.66 pStAjSm7!^r:|e2 Rif J, H«uy Schroder Wagg & Ca Ltd.»|^'^^^ ^^ aI ^ or Jor * cy 

If? * Li fe Unit Tat. Mngrs. Ltd. mCheapside. E.C 2 . 01-240 3I34 Series A Ontnl.t_I £300 I.1 

£3431 H? 

s! + 0 - 2 NAV per share July 14 5US202S 

275 aa 438 F. ft C. MgmL Ltd. Inv. Advisers 

111 ~0-J 1-2. LourcncePDuatncyHill.RC4R 0BA. 

1 Id —0.1 t-t5 01-023 4080 

?2 \Xi Tub CeuLPd-Jislyto—[ 5URSJ1 I.I — 

at Joj 43b Fidelity Mgmt. ft Res. fBda.) Ltd. 

-02 456 PO. Box 8 J 0 . Ramil tcm. Bermuda. 

SB 4fl - 5 MSA Fidelity Am. Ai*— SC525.18 j _....) — 

- 351 - Fidelity InL Fund- JUS2X89 . . _ 

S'? - 01 Fidelity Put Fd— SUS5089 +053 — 

II I ■», Kg PSdnHtyWridFd.- 6US15J* |*0O7| - 

20 8 „ 5 09 Fidelity Mgmt Research (Jersey) Ltd. 

+0.09 — 
-044 • — 
+011 _ 

London Agralr: laSeL 1* Christopher St, EG£. North .\mencan**.B 77 *M+«M — 

TeL *1-247 7243. Telex: ni44*6 Sepro-t-..MJ8 15.7^ — 

NAV per share July 14 $US20 l 2S Sterltog-drnamtoatod Fonda 
F. ft C_ Mgmt. Ltd. Inv. Advisers Channel Capita]*_.K321 2444) +1.« 257 

I^Umra^Lu^HilLEC«Oar^ Ch^elIri and^- ^t ^-o3 ™ 

01-023 4fl®0 n rirmlf_ 111? 3 119*1 | ?17D 

CenLFd. July 12—| SUK5J1 [.| — Prices on July - 17. *-JuIy ta*i"Juiy II 

Fidelity MgmL ft Res. (Bda.) Ltd. iwiekly Dealings. 

The British Life Office (a) 

Reliance Hue. TunhridgeWeDs, XL0892 92971 

BL British Life- BOJ 534) -0J] £76 

BL B a l a nce d*——W73 59^ +0A1 5.tJL 

BL Dividend-_(42 4 ...._| StZO 

•Prions July UL Next dealing July 36 

Brown Shipley ft Ca 

ro new lawrtmML Ucyds Bk. UnU TsL Mngra. Ud- Wop Pan.Cap B__. 9J.0 m. 

«=*_ T., - , Z V B c' - " - _T. 7LLombardSL.BC* 01-601288 Mi JS* 

City of Westminster Aasnr. Sea lid. Exempt--1967 vojfi —| 7.W- itoSSSSAStS; Si 

Telephone 01-684 0664 IJnydw Life imnBCB Omueao4—.L___ 903 

:rj — TO. Cimon a. EC2A 4MX . Scottish MMows 1 Groan E2 ---I 5S 

Commercial Union Group Opt? 1 

SLHeton'6 L UratorahaB. ECB. 010BS7500 

SRam^l w \=i= SSI 

Confederation Life laannnce Ca London Indemnity ft GnL Ins. Ca lid Mgd.PouUSy U-ifzMi 2 *si| 1”L| — * u '^SSTtSTa , KSa deaitog iiiif , aiL M ' 

oi^araz ^T^F*to.^*itog5^ii- safer Life Aasurauee Limited ■ ghj^ & Ca 

”7S^S:l ■“=:= HS&=zSI JKS^^a^iSS- „««■ 

staflWRtertfc S* raj - The London ft Manchester Ass. 
Group Mngd. Pen. - J2JB .. — The Lee*. Fol kexton e, Kent. 030397333 c 

M a = w • a e get- 

Cumhill lusmunce Ca Ltd. 3S5 r 

32. Cornhill. E.C.3- 014B6S41D fnv. Trust Fund- 1395 — SS 

Cou FebJune aRU - I -■-) - Property Fund-1 823 - fgg.inu.p 

® ; Sfc& M=i= Su.AIlUiiaPM4Itangmi.Lti ' 

Creiflt ft Ceenmerce Insurance zoa iV?!j ~ SunAiiiaueeHouse.Honham. ostnetMiExmpt-JaiyL. 

mRa«nist.irtodonwiR5ra. 0h«*708l ^ j^^^P 5J jS 4 J ^ 5, - 4 |^ Z Canada Life Unit Tst- Mngrs. 

CACMngd-Fd-IU25—.1 - ZZ - V«r. [fit 56 High St-. Potters Bar. Herts. P.Bar51l22 

Crown Life Assurance Ca Family bx«** _uu — J — — ^ “f*. i’an. c+nDisr.—( 3&0 436 

7260.GI»RiBseltft.Aytosbmy. 0965041 OtpitalJiIlyJS 
IM EquayAeram- --I1564 I6*fi -_■( 4JI7 
154 M ft G Gronpfi (yXcMr) fA^uSw. 

5 ” Tkrae Quays Tow Hill, EC3R 6BQ. 01628 4588 General July 12- 

+-?i Sn- a tan fitiwk brliuo Mnlinn (ACCUnt I'nitKI 

°*-a«SS» Series A Ontnl.t_| £330 

18^3® +15 236 Series B(Pacific)-..] BMS 
+1-3 2-36 Senes D iAm_A»s.i( £1730x1 
1 aw? Xza 6JU Hrst VUdng Commodity 

Schle5inger International Mngt. Ltd: 

41. La Motto SL. SL Helier, Jersey- 053473MB.' 

SAX1-(82 B7t +2| 833 

SjLOJ-IBS *91+001 <W 

GlIlFd- 22.8 23 0 -il l 11.96 

BU9US3&»rBi. “ 

•FarEast Fund....pCO 105 .....4 2M 

•Next sub. day July 19. 

ffik See also Sl oe 
jS-jff Americm - - - 

^ JSSK? 

971 (Accum. UnllSlI- 

£76 Compound Growth. 
5.61 COovTtrrian Gtc 
920 Coam-nam toe. 

L Dividend.—_ 
(Accum. Unlt« 
European ___ 

Exchange Deallc 
96 +0- 

—1 z BS Units Jnly 17—B17.0 23331 -1 

“ I Do.lAcc.)JuJrl7__@2.9 290J| _Z} 


Oceanic T rusts tail 

Growth Accum. | 
Growth Income. 

High Incosjsel 

Pmfo r ma nce 

37^+02 4J5 
193 -01 3.91 
-0J 679 
36a -0-2 4.79 
S-3 ..._ 9.73 

2*t 3 ^o7i 

ZLOd +02 308 

62-0; -0.7 4.« ___ 5.91 

CACHngd- Fd-IU20 

Crown Ufe Assurance Ca 

Equity Fd. Acc.. 
Equity Fd.Incm 
Equity Ptt-InlL. 
Property Fd. Acc. 
Property Fd. I nn»- 
Property Fd. tniL 
luv.Trt. Fd. Incm. 
In* TsLFd lnkL- 
Fried Int Fd. Ace. 
toloriL Fd. Acc... 
Money FtL Acc... 
Mono* Fd.Incm 

CrtrtTOLUelrie.WttofcCimiXWOttBaSOW ^®2 Slb5S55=' 

^7 644 M:d= 

i = % SfiS:fi &== SsS! 

1 ^ 7 fit “ M " a ** odFHad 
Ufa ini r*o TrteiTw •j'arff^jnly S -iSy M. Sue Ufe of Canada (U.K.) Ltd. 

1005 +03 — Merciumt Investors Assurance 2.8.6Ooc^or5t,SWiyaBH 0l-B90S«l0| 

imitti 7n l^HlgWtreoLCrordou. . 01688 9171 &dH mt ■ )“ 

• uu toi - —\ SM . - KSS&ffixi S:« :zd - 

1813 +0-6 — Prope rty Pens. -j »l^ 3 Bnunl.PB.Fi.—2019 | —J — 

mt +0A - 165.0 1"_! - Target life Amarance'Ca lid. 

xn SSSSB-Sn-i ISi =: = 

- __ Man. Fund Im _(955 loom | — 

__ _ "■ _ Man. Fund Acc_1175 123.7 .._J — 

Crown Brt-Int.'AL.IUSJ — I-1 — Managed Pens._I 2365 — SX'Sm "“n,,®* —| ~ 

Crusader Insurance Ca Ltd. ^ mSSSIi' ' ~ ) Sb 5 3. “ Kup^Fd! rax- iom — -Hj 

Unads Soua*. Tower PL,EC3. 01^26 8031 ” ;" L ^. - Fried Iut FI toe 1061 1»< JlJ — 

HhcmliBb* m.) aa.fi_4 — MB *' Pemsfena lid. »ep.Fd.Ace.i»e „955 iooa ..Tl — 

Gto.Prop. July*—P** oat 4 MirtooCourt.Ddrklnr.Surrey. mu SoiPljmAc.Pen._ 733 795 -fl.ll — 

Ragle Star InsarJMMtand Aw- ^^^^^1^82^ Z 

t.TJmNUtaeodtoSfc ECL 5"?®^ ^ — sSSSiSaS: m3 So Zj “ 

EagledUd.Units—.IH-5 6.01 NelexHouayCa£_ gJ W5 —■ — OBPwi.Acc.___ 1293 1361 ZHj — 

Equity ft Law Life Ass. Soc. IJSScoSicfS! S* »J ~ fezo S3 — J - 

AmarahamRoad.HighWycotobe 04M3MTT gJ — - ' Tmslatenntional Life Ins. Ca Ltd. 

Equity Fd_-M "g^ ” JJgSSSlfglS&r - aBn-mBid8x.EC4INV. DMI»B«7 

M 41 - _ ..NextSu'^dayJuly^ . ® iHSfiiSi-RSI MHLlW ~ 

Z Stm Allfence Unfced Life Ins. Ltd. cIlSSK 

Tir K«ra Yield.__ 


LAccum. Units) _ 
4J5* Fund of Inv. Tata— 
3.91 (Accom-Cmri) 

4.79 Genera]- 

4.79 (Accum. Units) 

9.73 Highlncwne- 
3 55 (Accum Units) 

4 23 Japan Income. 

318 (Accum Units) 

4.45 Magnum- 

591 (Accum Units) 

3 9* Midland—__ 

Uni la) 

„ { Accnm L'niW. 


lllA _ — Son Alliance House. Bonham 

109.7 .._. — BmriraPawS-019J 1 

J®* — — Fricdtotgestl 

167.1 .— — P rope r t y Fund 

lOOJI +0J 

!e of Canada (U.K.) Ud. 

■kspurSUSWiySBH 01-03054 

5£eI I d = 

0403D< 141 Do.Cm. Arrura ft69 4941-031 436 unlllH — Do.InC.DiSL-B§5 353( -03 7.69 rir:;"T 

A - *■**■*—-»* 759 jgsstSTHLfc 

k' 4 jj _ Capel (James) Mngt. Trustor -.— 

100 Old Broad SL, ECN1BQ 01-5886010 ^ycu ra-Lm l^--- 

~ aas- im g|ta JS »||s£ 

OB JtRy la Nett dealing Auxost Z jrfWcr. 

864a_ 3 32 SSL George's SL.DougUs.LoJJ. 

- 107.9 3.62 062* 46KL Ldu. AgtaTSuiibar & Co_ L!d_ 

3X4_ 236 S3. Pall MxIL London EW17 5JH. 01-00078 

369 ...... 236 Frt.VUtCra.Trt._MJ 37.1)-1 XI 

1749a +3J 440 Frt.VtDbLOp.TSt_(75B SOJhfi-( U 

§6fi ””” 5X8 Japan Fuad S^. 

tax exempt funds only 27. rue NoCre-Dume, Loxembotug 

Wj Scottish Equitable Fnd. Mgre. JSllSt pSlftLlA” 1 “~ 

gjs, 2S St. Andrews Sq.. Edinburgh (01^580101 . . 

7.86 Income Units-(WA 5281+0.D 5.24 ■“'2' SfT^t 

7J6 Arcum Units _—(567 66j]+fli} 529 J ““5°-1 9000.10 |—I — 

3-21 Dealing day Wcdnraday, G.T. Management Ltd. 

3-21 c_i_- rr-it nr_+ u__-^_ *u> Pnrlf n» IR rtnhipa iMihn ro 

1_76 Europe July 13 
(Accum Uni DO 
fig ■PenACharFdJyJO 

lS *s- - 


w J —■■( — ’ Schrader life Group 

Ity Truate Enterprise Honsc. Portsmouth. 0709 2773 

S*; ... ImerpaUouid Funds 

tEquiri- 1X76 125.U-- 

JH. 01-4007057 sEqolCy__1266 1361 _' 

57X1-1 2.40 £Ftxed Interest—_ 1372 1459 — — 

SOJhfi-1 U» SFried tuteqesl-1044 111.5- — 1 ■ 

S_ft managed- 1298 1380 . — 

___ Ulunaged-116.6 124.1 _.... _ 

321 Deaitog day Wednesday. G.T. M a n ag eme nt Ltd. AxIbSfU Jiilyio “ 

■ u Sebag Unit Tst. Managers (a) E“r k „?s£ri 18 Ftorinuy Cjrcox. London EC. DurtiogFnd.—._ 
PoSilckllSSE?” ^5000 809100 - Japonrd.July 13_ 

2X5 if K?f p£!5i ™ 5|5 Anchor ■RiJnltx~jjlU58.95 Lfllrf ... -I 2X4 Sentry Asuuran 

Sebag Income Fd... pO.ts| 822 Anchor GUt Edge-OTA* 9.33^+002] 1305 pa^xk 

J. Henry Schroder Wagg ft Ca Ltd. 

J20.CheaptJdc.EC2. ' 01-0884000 

Cheap S July 14 5US11A6 I ......| 249- 

Tralaucar May3I _l JUSU9.41 J ~...( — - 
Axtan Fd. JulylO __ SIS25M NW ..._ I 275 

..._l 5 20 
.i 050 

US m -ox] 822 jSf&ltE 

JS Security Selection Ltd. AnSSrtoj»^ir.fiM ^ 29 ^ 2.62 ““■««» r ““— pwxx™ -—1 — 

§■22 15-18, Lincoln's Inn Fields, WC2 01-83168»8 Bctit Pac JOS4837_OjSl ei„«- r J8, 1 j n 

I m UnvIGtbTstACC—1KX 269 +UJ *21 BanyPucStrig 29600 309.9! 0.97 SlBgCT ft Friedfentfer Life. Agent* 

840 UnvIGUiTst U»C—^9 23fi+0.9| 221 G.T. Aari Fd__—.— tHX951 UC 649 30. Cannon SL. EC6 01-2489646 

m SMtMM.itaw.uiu 15 SSflffifiscffiBLJI.I IS 

320 45, CharlotteSq_Edinburgh. 0^2283271 G.T.DolUrPd.- 8OT720 ...» «J0 * ' * US37JW ' 1 

Anchor , B 7 units__BUSB.95 lurt ... _ 2X4 Sentry AsBarance Inlcrnailonal Ltd. 
83 vkao Sll PO- BOX 326. Hamilton 5. Bermuda. 

g?" V9:“ Ik ItonaseflFmul-fiOBUM 

J I” o.w Sieger ft Friedfentfer Ldn. Agent* 

Dekafonds-|0U2SJD 272fif.I 625 

TokyoTMLJuly3....| *US37J» |.| 1.68 9afi+21l 4.< 

teatasen ss ss.r 

CwtinI Unit Fd. MgrtL thKc) MwmLLfe Management Ltd. ' ‘ Eg^SKT 

Milburn House, Neuvastle-apoa-T9na 21165 SL George's Way. Stenuiage. 043856101 Target FI nancriL 

Cariiol—--(MJ SJ—f 4J»' Growth Units-,|52A 552J ..._J 4X5 Target Equito-— 

Do. Aceum Units _SJ 0 “S-M ~4 * « Mayflower MantqKxaest Ca Ud. 

Sfl-1 K? W/I8GreshamSt,EC2V7AU. 01-6068080 Tw^rtGUtFond 

^■^^S^id^iSledatoJnri'Sif *** toeome jiineZ0__Jp7.7 __4 813 Taigct Growth - 

_ ,^. Ba ™ eJ a y .? & General June 30—[Ha 73fl 533 Tarael.tatl._-- 

Charities Official Invest. Fdfi Mereury Fund Managers Ud. Dn.Rntav.ttalta—rtj.v 

77LondonWriL EC2N1DB. 30,Gre*han!SL,EC»P2EB. 01-60045B6 xSSS.jSiyiS— 

Charterhouse Japhetfi 

1.Pm ernorterHow.EC6 01-M8380D».Jun«att_p>5J «*i | | 4>56 IB. AUnlCrascent,Edin.: 

CJ.latenmT-123.0 S3 —I fiS Midland Bank Group Target AmetBagleg8 

- Wd §I|H 7 « Unit T«rt Mawg«S W £5ffiSteS& 

CJ. BiroFinZmC66 iSfi ZJ 4® CpUJtwpod,togum SHrar Strert Head_atoulnc^wjro—pu* 

min uwCTiu- ■ — 

Tm raariboodJuriU. 

yg Cbarild. July IB- 

.9 (Accum. Units) ___ 

PeazJSx. Julyl7_ 

+0.b| 55 


RctPtanMim-Cap„ ( 

3.70 tHewait American FV»d G.TPacincF rt - - ,| 3US14.77 |-601j J-M Stronghold Management limited 

7JB standard UnUa—(63.9 6611 | 142 *»artmore invest. Ltd. .Ldn. Agts. P.O. Box 315. SL Heller. Jersey. 0534-71460 

Accum UnitB--—(68.8 7T4j „„J — 1 SL Mary Axe. LnndoQ. KC3. 01-2633531 Commodity Trust _N1-10 95.901 I — 

Withdrawal Unltx_|5J_* 54J) —j — Gartmore Fund Msec. (Phr Rmtl Ltd. „ 

"Remit British Cap!Cal Fund 1503 Hutchison Hae. 10 Harcourt Rd. H-KonE Sunttvest (Jersey) Ltd. (X) 

cm Standard HVil M66| +1X1 A30 HKkhc.l I -W,..Hraa |g - j 230 QneenaBse.Don.Rd-SLHe!ier.Jty 0534Z7349 ’ 

va 430 M a 1 {SffihHr 4pa - 

Sun Alliance Fund Mngt Ltd. ^ _ 

Son Alliance Hie, Horsham 0403 04141 PO. Box 32, Douglas, la sl . 0824S38U TSB Unit Trust Manager* (C.L) Ltd. 

H *»*»■ a S*®Le=a* Bssa^sr^at-sw 

7-74 Target Tst Mngrs. (aXg) Bmum> Wcine FuBfl Mgmt. LW. Guernsey Fund ._.J«.0 490| +D2| 490 

& sssasM^m &3 = 

*S Sun Alliance Hie, Horsham 0403 64141 P.O. Box 32, Dougiaajott . 08S4 S301I TSB Unit Trust Manager* (C.L) 

1W ^ a te4BLSL™ ssKKsr-aa' 

IX 187.0 +4J 7.74 Target Tst Mngrs. fsMg) Manuwo neme Fond Mgmt. Ltd. Guernsey Fund ._J« o *02] 

|> lacd Tto S Oonamim Centra. Hmut Kong Price* on July iftNeut sub. day Jily 

31. Gresham SL.EC2. 
Target Commodity. 

813 Targe* Growth — 

“ sias?u733= 

D«linMD2M5Ml aiuI ' ConaaujUit Centra, Hour Kong Price* on July 10. Next sub. day July 38. 

IS SSKa&dBBf H =| - Tokyo Pacific Holding* N.V. 

390M -Q 2 fcJi Hamhros (Guernsey) lidj lntlmia Manucemeut Co. N.V, Curacao. 

^ m Hambro Fund wBl {gj.) Ltd. NAV ^ 10 5US «' (16 '' 

xzij | so PO. Box 86. Guernsey (MBi-sssci Tokyo Pacific Hldgs. (Seaboard) N.V. 

30.4 —0.2 4.76 C.LFirad --+ 1 J™ Inti nut Management Co. N.V.. Curacao. 

?A +gi ig S?^W 53 NAV per Ohara July to 5US4490. - 

&S m £S WSi SiS 

315 -0J 8-27 Price* On July liTNeif doallng July 28. p -°- Bo* 12M Haadttoe 5. BennadA. M7M . 

14 ^ 5 * grs - ^ aswsfcteas 

25Z i . „ : ,_ .. “ .^7 P.O. Bo*N4723, Nassau, Bahamas 3-Way im June 33 _^L-SU1S 

456 Target Tst Mgrs. (Scotland) faith) Japan Fd... . WllMt B71( —J- 2 Newest Helier. 

456 ULAUlOlCrescent,Bdto-3. 031-2298821/2 J ' Uy TOFSWuly 13— 

TmM 299at+DJI L4I *™“8- Non* Kong_ (Accum.Shares’, 

Tranrintemational Life Ins. Ca Ltd. — 

BBream Bldgx,EC4lNV. tfHOOBOrj Accum Units 

Fried Interest F.—I 
3td. Deposit Fd._^f 
Mixed Fd--I 

fbr New .Orest 


lIm-.Fd._4M UL6J +2X1 - 
»JdAcc_.|96.7 lOLfi +2X1 - 

it Life Amuranee Co. 
e House, Gloucester OVS38 


»v_ t u AcoimUnlla. . .St 33AI ZJ 437 Sheffield. 313TeLff 

CJ.Fd.Inv Tat ^6- ZZ3 356 ConuaodUy&Gea.. ftj 76.S +0 

OMOWrtw Accum Unit*_ps.0 35.7) 356 Do. Aceum —■ to3 ni +0 

+3^ — Prices July 12. Next dealing JtUyUL Growth- — gl 39-| +0 

tzi — Chieftain Trust Managers Ltd.?(*Xg) gj 30 *! to 

+J 8 — 11 New-SLEC2M<TP. 01-2833632 DojAraum.313 S3 

+2J — mghiSSs - JS Do.Accum---- NU $43 -O 

- . f^ssss.frtigiN.9 2 ^ 3 ^ 3X7 wgss?!i=a2 as a Bartc Resrce. TstP?X 293+d| *27 -gJ 6*| „ 

OW136841 Confederation Fund* MgL (a) gSutoaSmrT: uf« xfj “ 

- 30 Chancery Lane,WC2AlHE 01-2430383 p|!Xccum*_-.tura.9 1S&5I ..- 

— Z Growth Food-(4Z.4 445] +051 426 -Prices at Juno 8a Next deaitog J 

- cnraumiilitan Pnnd Hampers. Mhtotor Fund Ma*mger» LML 

Bee Trades Union Unit Tst Managersfi 8 r-^ h—., bl." peter p»t GmnJi CL nNouS^mUtt?" 

is »»-<««, „ _ Hf SSFCf W sssassg 1 

TOUT July 3_-1446 STB) —J 556 Bm, Sxmnrf OverwM Fund &A_ V^raBorec.Do 

IVansatiuntic and Gen. Sees. 37, Rue Notro-Dame. Luxembourg Managed June 22. 

81-89 New London Rd. Chebnsfonl02455l6Sl ISDSAB HNJ+OJK) — 1I( - Ml 

is Barbican Jdlf 13__)742 7B9ri —I 550 International Pacific Inv. Mnstt lid. M __ . ^ ™ 

Gilt Fund July 18 

.SI *2, Cosmopoiitan Fond Managers. bbibt f mi mo. tArcumliiiits) 

1 -J2I — - CoamopohLGmFtt. |17.9 3U| 1 473 iSWiuly 10—S« 36fi I 6.02 vS^|yia 

ul- m£ iw +03 - Crescent Unit Trt. Mgw. lid. (dXg) 1 2PpS £“* ^^Juiy 

-124-5 IRI — — a M«.i untar* f« xyunhu+ gha. 1 031-2204331 Unii iri ai M g gni tlt. Lift Vun*reeJi 

j ) r ??i JSd “ Crum (Growth B7X 29JJ J 453 Old Qneed strata, SWiHOJG. 01-0807333. (Accum. Uni 

+ me Ss “ CrStoeSSnlZMR 075 MLAUnits-|4L4 435(+0J) 4X4 WleldrJuly 13 

tASZutJ 33^ “ ■— g| J M* Mutual Unit Tnut MOnagersfi (a)(g) wScSj^rW 

!SSE:iSi SSr-:=' S2^==Bl ■ 

SS'i— - Discretionary Unit Fund SBmggen ISSaiinc-TSh-*^ 4 7 .« Tyndall Managers 

^!=SJ’ - = »SSSta.SrTi U ~"555i aaiii sRs^HSi aa«3 IS iiS^ssysa" 1 

fcTgK I^e«s« ^a-SSSBEal 


'01-358 8212' 

•hi Gn-rnwich Hlsh Road. 
jPffim-ldi. 8E10 8XL- 

■Doiw*Ji R>ic fl-4fl’S. Shan? Accoonis 
!W)'-.. Sub'pn. Shares ».8S *. Term 
iiiarcs 2 m. ili above share rate. 3 yrs. 
„ aOoro shard rale. Interest paid 
luim-rij on vhawsrtiOTi shares, 
don lit ly Incame snares 6Jia,o. 



13^17 Cblnrlcfe HUdi Road. 
London m £NG. 

nth Ace.-1265 


L^WCsp.. U3L3 
iOUJJ>ep_Acc-. 106.6 

107.91 +03) — 

is3 - -...4 
nt Ltd. 

3 ^ 914)9 New Loudon 


827 (Accum Units) 

gw CoimoJiUYl-i 

59fi (AccumUnlU) 
s! 96 CumbliLJuiril 
Si. (Accum Units* ■ 

G ten. July 10_. 
Marlboro July 18 
(Accum. Dnlta)— 


l4 a 3 * grs - “■ ss-tffcia qua - 00 

] P.O. BoxN4723, N»*s»u.BalunnB* 3-Way IM-June S3 _|SL I SU15 ITS ,....J —, 


12853-Baa - 
863-a05l 200 
s*3-0 05j — 
20521+24 786 726 

IT B * mn « >™ «*ml SA Victory Home. Doute*. Isle el vim. O^lssTll. 

L Bees. 37, Rue Notro-Dame. Luxembou rg Uanagcd j une 23.... [229 4 U 6 .fi .[ — 

Stanford 0245 51651 ITOSM NLTfi+OJM) — .... ___ . tr . . , # A 

78.9x4_ 550 International Pacific Inv. Mngt lid. Utd * Mngourt- (CJ.) Ltd. . 

1224 550 pq b__ pro » 14. Moleaster street Sl Helier. Jersey. 

~ 1% ^ - TJLR Fond-IKJSIIMI BU0 _....) 8.06 

103.1 — 4.96 JJLT. Managers (Jersey) Ltd. United States Tst IntL Adv. Ca 

tSI — 494 1,0 Box 1M - Revel Tst Kse., JarseyOU* 27441 14 Rue Aldrlnger, Lusembours. 

as 727 Jersey ExtruLTbL.. [174.0 185.0) ) — UJS.T*Llnv.Fnd....| S1059 |+ 0 «| 0.94 

5*7 " 797 As a* June 30. Next sub. day July 3L Net asset July' 17. 

Deposit Rate 245. Shan Accounts 853. 
Sub'pn. Shares 229. 

[ Crw. Resenres-f 

i.Pty. Acc__hir.7 124fl_ 

■ Bond_ Mb ...... 

LGJ. Bond_(925 — (+03 

•Cash value (or £100 premium 

*d = 

76fi — 

693 - 


757 JerseyExtrnL3bt_.|174.0 185.01 I — UJS.TrtInv.Fnd.... 

727 As at June 30. Next sub. day July 3L Net ; 

%g JJnUne Fleming ft Ca Ltd. s. G. Warburg ft Co. Ltd. 

H ISSSl&ar. ^3 - i* 

U NAVJ “"£=sS ftr™ Wartarg 

5 X 7 Keyselex Mngt, Jersey Ltd.' 

2 S PO Bo* 96. St. Heller. Jersey.. CEne GI-806 7070) cMTUd.'juncaa _ 

JJouerte*-inmUaS i,W .I 260 Metals Tat. June]* 



<£72 32341 Keraele* Europe^ 

—( 856 Japaa Gth. Fuad_ 

-1 ■—■ Reyselax Japan 

——l 436 CenL Assets Cap_ 

Warburg Invest Mngt Jrsy. Ltd. 

1.Chsrinc Cross.SL Helier. Jsy.Cl 093473741 

CMF Ltd. June 29_ UIE1Z35 1267] _] — 

CMTLld.Junc29 _ K1277 13.1fi .... — 

Metals Tst. June 16 £1217 12«N — 


30,000 people in the United Kingdom suffer from progressively 
paralysing MULTIPLE SCLEEOS1S—the cause and cure of 
Which are still unknown-HELP US BRING THEM BELIEF 

and hope. 

We need vour donation to enable us to continue our work 
sufferers and to continue our commitment to find the cause 

please help—Send a donation today to: 


The Multiple Sclerosis Society of CUB. and NJ. 

4 Tachbrook Street, 

London SW1 ISJ 

U,Cmqmg*B**d,SrisUL 0272322 

Mfc gK = “ 

isadJnSw™™*. 166.0 _ — 

P»3>«tyj«ira— 105.4 — — 

Agfenjuiyia_ 127.9 _— 

2-wayPra.Jblr6_ 1469 ___ — 

SSS&ffiZz 3& ~z 

m - - 

D0.grpp.j5y3_ 866 _4 — 

Vanhnigh Life Asamnee 

4 v :'.- Jd<3dX BL, Ldn. W1R OA 01-40040 

iiis^Ei! m= 

^BdtotarrtFd_pt2 -0X — 

Pnmwtym_D4L9 — 

Great W5fteh«le-„fI7X 
GLWlnch-er O'serehU 

y —f ftXtmpMIU 

bh (AcrumUn 

Emsan ft Dudley ftL.Mngnmt. Ltd. National Provident Inv. Mogn. PretJuiyi 

_ 3Q, Arlington St, S.WJ- 01-4097551 48.Grao«±UTchSL.gCaP3HH 016234200 fiJ^SrSSri la 

IT - EmsoaDudleyTst_(665 JL5l —4 360 KFJ.GtoU.n.Tti-fex 4 « 0 j —J 4 ^ 

r = Eqnlfes Secs. Lid. W (g) lg| H 35o 

_ _ Frofirow! v«-ffi7-7 TL4j+BJ| 3,99 *prie«s nn July 12 Nexl dS3ii»i[ July 2£. Pa Aecum 

Equity ft Law Un- Tr. (aXbXcX*) National WetianisateriKa) SK™?- 

11-4004023 AawtiMffiBA.BIftiWpeoiittt OUN3S3T7 ml CheapddJ,BtW «H. W-4M 6pm. „ Flnaneinl Prtrty 
“i. Equity U Uw_„| 6 i .6 70J(-0X| 4X2 Capital(Acrital—fej 7L2 4X0 Da Accum 

Su — iwjsMtn, i-_u tm /.i Sot toe.,-»J 70.6 -OX 7.76 High Inc, Priority 

•0-9 — Framii n gton Lmt Mgt. Ltd. (a) rinsrirlal -gf S75u +0J 512 lutreustlona] 

-OX - 5-7, Irelsad Yard, EC485DH. 01-2480971 Growth Inv.-fett 94.ta +02 5Jj9 Specials Us.. 

vv “ Amerira^-- -- - | 4|Jl g JJ-fi ^ Portfolio tovm_fe,| m -02 554 TSB Unit Trusts (j 

IncomeTSL~___ 1*48 lllAri_tW Uuivm*lFdJ*0--.(UX • MJ| +l3| z2 2LCh*ntiyWajr.Andovc 

irt Growth Fd-— wfa m3 — ix NEL Trust Managers (aKg) , ; • . Duitoesjol 

71-4M4B23 Do.Aeemu.__-1 113 - 0 “Q-fi -~-l 237 MiUoncourt.Dorida*.Sttnuy. 5011 reir^S!!S. < S^~~IS'j 

- xrtiur-.—^-fea 60f-ft5| 4J2 

sf ” PrihumEuaDtridn*. 09005055 ftn* ^^_^-AccuI ,, -gb 

“■*1 _ Friends Prev uta. (43,0 45,9) +oJ 419 for Ne* MBHl rlniB lUBIgVn Ltd. TSB Scc ttlth— . — . - W-* 

rd«* Do.Acnim_____’.l555 sal)+o3 *1? . «c RrtfefMM Aairi Minugw m wrt tbiDo-Aecum-WJ 

; G.T. Unit Managers Norwich Lm** bunnoce Groap (b) Ulster Banfcfi (a) 

(tMHSnss lft Finsbury Circus EC3M7DD 014288131 ai 

0)0991333 G.T.c*atoc_I860 9Lfi J 340 GroupT*- FO~-~ProX 3BJ( — 8 J( 4.99 IbR/lsterGrowth-1J75 

^^toul-® Utii 

FiwdlBreratFcL lfc*i 175- 


Tnhrngh Pearton* Liudted 

41-43 ItoihfaKSL. Ldn. WlHSlA ( 
Htojttd_—„RJ U*4 + 

=1 s SSs*= 

2X0 Louden WaU G 
■[July27. CapitalCrowth 

e Julv 28. ga.Aritum__ 

‘ w «teu Inc. Growth- 

epOD. „ Financial Prriy 
4.20 Da Accnm.—— 
-03 7.76 HKb Inc, Priority 

_ — TMTJolyW_UUSTJB U5n . — 

. — n TMTliit July l+.._pi0J6 lOisJ ......| — 

— World Wide Growth Management^ 

- — 10a. Boulevard Royal. Liucmbourg. 

. ~~ Weridwide cth Fdl 6VS1MI | __I - 

Property_ (TT2 Z02fi —— 

Guarauwed sea Ins. Base Rates' table. 
Welfare luuace Co. 
TbaLeei, Folkestone, Hunt. 090857333 

SeSSSr toeSf piia** Sw VsTLeLoLtea ft 

Uayhaf fT GTDOp.' 

Wtadaor life Aaanr. Co. lid. 

Bayal Albert Hsfc,Sbe« St, Wlndaor 88144 
LUc lev. Prim. (692 728) — > 

FbtenAag ^tal.p 19.00 H —■ 

Set Assd. Feus. §Mm J ™. — 
Flax.lm.raoiBb-Q83L4 iwM ~ — . 


128JZ ..... 


1726 _ 

08.9 -DX 5.96 

90.4 . — 

39! -0J 995 

46.4 -0J — 

17.0 . 5X9 

207 +0.1 — 
665 -02 007 

33.4 +03 27* 

33-7) -ai] 5X4 

TSB Unit Trusts (y) . 

2L Chtony Way. Andover. Han to Q264621K 
» DealtoiS to 0284 834323 


Prices da not include S premuim, except where Indicated 6 . and are id peuec uuleu oUiennH 
5.41 pul tob*. Yields 9t (Bhowa to Inst eolumui allow for all tmytoc.expeniief. s OOered prices 
Sfl toetadeuUexpenses, b To-darsprices.e Estimated.* TO-days 
U 2 opening price, h DtatributtOB fix* onj-K.t»e*-p Periodic pramtoju | Muranro plana.* Sag to 
Pr emium. Insurance, x Ottered, priee Includes all expanses except ogoat s eeuunlaslen. 
> FOnezna price Indtides all axpetues ii bought throogh mimacera. x Franoua day's price. 
»-ro 0 Net of tax on realised capital coins unless indicated bj f. 5 Guernsey gross, t Suspended, 
one • '• ♦ *ieM bdorc Jersey lax. T Ex-aobdlrialon. 

+03|. - 
+OM — 

13 = 

(bffSBGeocaral—— 45.4 
fblDc.AgCBWt — 57J 
(bi TSB Income— 59 J 

(b) Dc-Acnim-6U 

TSB Scottish-— B t 
fblDa Aceum - [B9X 

! G T.Csp.3ne_JffiO 

G.T. toe. Fd Un_Z!IuBJ 

G.T.VAftGeo_ P44 9 

1 GT. Japan ft Gen—B33-9 

6GL FcnyExJd_ m&& 

GJ. InfL Fund.—pi-6 

G. ft A. Trust (a) Xg) 
2 Rqylelgh RtC Breormed 
OrftA. 11 ——i..,p2X 

48.6 _.._ %n 

US . 3X8 

63X -0.1 7X4 
65X -0.1 7J4 

381 +05 28Z 
95X +0.5 232 


«J(-0J| 5X4 J 

9 XA _ 340 T" 1 ®! lonfreerGroww —wji -« 4 | a. 

J09.7 ~. I:® p««rl Tm0t»m«g«ni Ltd. (*KgXr) Vni . Account ft MgroL Ltd. 

iN SSBS5SES?“ 2*6, 01 TUa SSS 

3S1.4 +6.4 0.90 SStoKus —wi w3““j 50 FriaraHat Fuad—p520 16L0rt _..J 4i 

S-ffi fcS¥r«--—S3 .—1 Ict JJtotordib.Fkdta.gJ-J ?x| —\ *: 

Ill 7 ^ .J 4.99 Da Arcum-J34X 362] .._.J 4_ 

57 ^+U) 7X0 iAeenmLn!ts)--.(4B SSxj-ojiJ 0-99 wider Growth Fond 

PeUcan Uufe ^nrin. ZXd. (ggx) BnsWlHlianStECfltOAH - 01-623443 

( 0 277)237300 81 FewaolpSt,Sfettohym . OMfiMBOB in^auuSsIl^m.? 31^ -..4 % 

3OI-0LU 4X8 yclleaaU nlP. 90X1 H>4 SJU ACCma.Uglta-+—gO 364 - J 4J 

- Ul-UZj48eil 



-J iS 

1 Royal Exchange Avc.. London EC3V 3LU • Tel: 01-2S3 1101 
Index Guide a5 at lSth July. 1978 (Base 100 ai 14.1.77) 

Clive Fixed Interest Capital . 129.77 

Clive Fixed Interest Income. 115.70 

CORAL INDEX; Close 470473 


+ Property Growth. 10J % 

t Vanbrugh Guaranteed ... 9.50% 

t Address shoyqi under Insurance and Property Bond Tabu- 


32 Baker Street London W1 
Telephone 01486 4231 

Nine regional offices ftnvnc 

Specialists in the sale of privately 
owned businesses and companies I | a* k 

Valuers - Licensed Dealers Ini 82 % iireiandr-* 


s Financial Times Wednesday ‘July 1978 


« Oil. «lj Jfci 
— liras Yield 

High Lira 


H Dio 

I Vt 

1+ «H Pie I ™j j IW 
Wcc | — J Net |Crr Gr»|P/E: High' Uh 

Bieb Le* 


Stock | £ | -i TnE-l^ai- 

88 I 82% [Ireland T-jpc*'..©! 83 I.| 7*11218 235 172 LVABUuriSAl.l 22B [+3 llOKt-d * I 4 11 * ;3% J328—I 385 1-7 I lb 521.2 9J3 78 

91 79 fr*9bpctfl96. , I 82 . 9% 12.85 81 66 Nil. fora. I.rp_} 7S t:A3 4 b SJ 6 T 49 . 41^ _41* 

iW ht; I.. I in I I I *298 250 VjLfffsUl I •m* I «‘In ml ai I as! cs tt { n‘li.> d...i I w 

445 350 Srhroderoll 

88 82b Ireland 7-jpc'81.83 83 

91 79 ft»9bpc'Sf96. >. 82 . 

395 -265 Japan ipc‘lil 390 . — — 298 

,!£ Do6pc 8M8— 69a! . 6 11.05 445 

Jbfl 140 ftruAssJpr_ 140 . 3 2.16 255 

7Sp 75p SGIftprisro., 75pd . 6o 8.67 £ 

JSW S94% Turin 9prl99i ... $94*. 9 952 . 427 

DM91 DMfilTurin&’pcISB'l_ DM91 . 6b 1070 ,5? 

97 I 94 UnijiuCSjpiw. 97 . 3b 380 356 

1 fsp /spun. not b.d* i j; 

J?3felX u -’! n ^ 1 «J.. -l . M»\ .I A\ A* ■ Mg 


U.S. $ & DM prices exclude ini'. 5 premium | r Jf 

' - 75 C63 4 b SJ 61’ 49 . 41b Do^PtH-.. 41b 

280 -s' 1149 4.2 6 2 5.8 . 77 b2 Ir-L Faint.. 72 

ScftrodoriU.^ 405 -5 u 95 — 4.3 — 1113 91 Uportrlm.’ 113 

S&. com foe MCU. 215 ]iW - 9.4 - £30% £22* NonLHJxt8U_ £27 

Smith St. Aub— 76 ..." 501 - 10.0 - I 85 72 PIcuIOp_82 

Stand'llChart£1. 39Snl 19 *5 q34 7.4 5.0|200 140 Ran»mWn. IUp 195 

TtadcDev.S1.S0. S9 QjS.- 3 2 6.1 5.2i 68 48 Ef-ninkil IOp__ 58 

Union Disc£1—_( 315 +5 

- 1M- t 67 55 

41 1-2 1-1 - I -11211220 1190 l5Wt>7!rri.£l.l 220 


Stack | £ Mft|cj 

. “Shorts” (Lives up to Five Years) an j I P l + *1 SL r« 

w, 955, (E\rh 5pe76-78tt- 99^ 5.04 9.ZL Bgb I **** I £ Gmss CM 

105* 101,1 Trea.-ury Ili^r79^„ MIA . U-37 9.45 17% 13% ASA __ 16*+% 80c — 

•97 94?* TreA-urtSpeTOtt __ 95* ... 314 6.95 60% 601; AMFynCdcv.UT— 60* 59i — 

97" 95b QKinc'*pcT+79__ 95% -b 4.43 7.n ,31 22 AmwSl_ 29%. SL75 - 

IM',1 99% TreMuyUbpcTStU 100b 10-47 10» 32 21% AmericanExpress. 2?bxd+1 5L40 - 

96* 94b Electric »?pc 76-79-. 95 7 a . 365 67833 % n Ama. Medic. InU. 20%+1% 30c — 

9bb 94b Electric !V;p£ TOTH— - 13*8 . +*• 

1G3* 9bA TreasurvPpelfflOSi-. 971? +% 923 10 68 15 % % 9 p 

202-> 97b Treasury sfoc-att: _ 97£ +ft 9.70 M.74 29b 1B% 

95% 92b Th-a>ur? :P:pcT7«.. 93% 3.73 6.g 19% n? a| 

%.? 03L Fuiuiini'SbpcIMOt: 94b 557 8.57 32% 22 


Bate 1 InmL Core Si. 

11* +b 40c - 19 
25 +1* 64c - 15 
17b +* 90c - 29 

31b +b S228 — 4.1 

ffelliftreog- £22*+% 5140 ~ 3.<H - 156 108 
alp— 69 3.03 — I 6.9] — 15 5i? 

rartPtalir*.. 154 
nrSariaWp- Mb 

tn __3.03 — 1 o.7| — 13 3*? inrarwiaCT- ±^2 

Dm PnrrliacA nfn 23 17b ^anlJei'Ber.llOp Zlb 

mre mrenase, etc. Z20 162 woistrahotoe— 220 

. 39x1 f._M120{ Z-0| 851 8.7 109 80 [Yorks Owns— 108 

£60*L JQ12% — 25^- riixTiTUAC imril 


35 -I JlB7 30 8.1 *53 *>169 [AagIhTV*A"_l 79 I._..mi8l 3.1l 8.01 W 

m 1 £L5 i ’4-Mi™ * bssssk Hi - j6 ' 55 

94 +2 487 

Ksiixrta Hldjcs. ldp 14 _ —1 — 

[Wagon Finance- 43 -1 I hi 061 ZJ 

81 5j 90 69 AngIhTV“A”__ ,79 

_ ill 119 98 As, Tele. “A”— 117 

7 9 84 40 32 GrainpiAn'.V 10p 38 

73(74) 85 55 Green firouplOp 65# 

_ _ 32 1SZ 2 HVnJWsf*d20p- ,32 

73 45 UT 108 RTVN.V- 109 

73 45 135 106 L«TA__r- 320, 
176b 66 Rrfa.rVFre££l- 66 td 

63 +2 44.05 U 971 
24 - T123 7 S 2 

«8 d269 4l5 5 

“ . E305 I ts4 

46 ...... 250 f 82 j 

228 -2 441 4S] 2 « i: 

90 ..... 2.87 53 48 !■ 

+‘i m? 25 j?J 

78 -2 ifefr 25 501a 

35«. dlb7 t 7 2 a 

1J2 1959- 12108,1 

102 3,69 ■ 5.0 5S1 

4 * 55 i4 74 1 

89 R737 021*9 J 

,145 . 3915 3 4 9 64 

M .— ttf7^6 WliSl. 
57 — J19L . i j 
82 fcd0i75 75 1 li 

92 ...... ars 35 bj^. 

75 — dIM 51 J.? I 

27 ._.. 154 # fii j 

675 — 9d25.0 .* 1 

44 -dObb tfi Z3l| 

55 t329 UU 93 * 

™ VL 17 Tji* 

9.4 drapery and stores 

Qbi" VanableBSW- 

°o ; -. 89* [Tn.'*.-ur> 8bpv Si. — 

94‘A . .. 1029 1146 25 14* DoCm.PrfBSU 

90b -b 9.12 1129 is* 12b Colwle^P SI__ 

liM'I 91* Etch 9bpM9C -'-“j %b|-b 10-04 IJ-g »% 29 [ColtI ikI^.SI 

12b SI .00 — 4.5 
20b +* S2 — 5.5 
16* +b S1.00 — 3.5 
31*0 +1* S3.15 — 5.7 

«»J * 91b EwI.^pclSK A-92* -b 10 M U-67 a, 15J 2 ConL IllinoisS10_ 23*al SL32 — 3.1 

9b',I 6?b E'.cKA'ipelOBa- 90b -b 467 11.52 25* 17 ConLOilSi- 21*|+U SL40 — 3.6 

85b 79* Etch 3pt B3_ B0»*a . 3.W ,f|6 28 20b Crown ZelLS _ _ - 

114b 100b Tnus’icv I2pc 1983ft -- 101b -b U-82 U56 47* 20* Cutler-Ha miner S5. 

10£U- ST* TreajurvSbpciB_ 91* -* 10.12 1137 32 * 22 Eaton Crp-SOiO— 

Five to Fifteen Years IQ g™*- 

45 43 Etch inpc'8H£45pd w 44* . 10.60 jy 4 57 ^ FiresimieTire'iuI 

E°“ 80b FundmiaisK 8I-84&. gi . 6.68 9.g igl. hi FirstChieapi_ 

°6 _ * 86* Treasuit8>:pcW«tt 88* . 9.67 10SO 32 , jq. nuorCorpP,_ 

S7* 77b ‘■'undiiH’fopc'BSS;^.. 79* . 831 10.g mb 26* Ford IWotSI!_ 

89* 79* TresiMiO 7t,prfid .. ... 955 10 99 2S* 16* f.ATV - 

63 S 60* Tran.vjn.lpc78«._ 63*+* 4.74 856 44 ^ 29* Gen. HectE*_ 

Tn* 64b 7reo. utt5pc 88BB ... 67* . 7.60 1016 24* 15* CilietteSl__ 

315b 101* rreaiurr^pclWJJ- 104 c... J2-46 12 27 43 * 28 HotottoJISL»— 

89 * 77* Titomitt 8 b 87902- - 80b . 1038 1144 14 % 750p HunonEF._ 

is*-- s:*- ssHTjaas- . m scores— 

251? +* SL90 — *2 
46* '+9,95140 — L7 
30b +* 5125 - 41 
24 +* 51.84 — 4.4 

36* +b S3-20 ~ 4.9 

1141? BolmmHP.i 
140 Bunmiwond. 

55 City Lml Drf 

114 ClarioTLAJieir,. _ ____ 

163 Distill er?50p— 185 1-2 7^6 430 61 83 

IS 'irdoniLllw.. 24 |.J _ — — 13.7 

43 CoughBnK.20p. 50 +31 280 1 9 8 5 7.7 

93 GreenaHWTutley 115 . 12.62 41 3.510.8 

156itf. 3.4 ♦ 

60 +1 2.4 1.1 
148 _: + 5.21 3.: 

* ClK l q i 

:qp-| 40* 

18* Bakers Strs.l0p 36 
31* EBBbeDSnwlOp- 
84 Beattie iJ)\V— 127 

25 BentallslOp-35 

13 Btom40tm.20p. 171? 

12 BoardmanSDSp 13 

10 |BdltooTexL5p— 10* 

213 Greene lung 
153 Guinness_ 

270 -3 726 * 4 
159 -3 17.021 2.4J 6 

S ? 8 ^ sSIr 44* 29* Gen. HecLE*_ 42i a +* 5220 ~ 29 

• 750 1016 24 * 15* GtlletteSl 23b .. SL50 - 3.6 

I”;... 1246 12 27 48 2 8 HoneywellSL30t— 46* +b SL90 - 23 

. 1“^« I** 750p HunonEF.- 12* +* SO .68 _ 3.1 

. “21 1-^ 224* 171 IJAL Core. B_ 214 +J S11.52 - 26 

“* . 8*7 1“ ^ 52b 34 ln«erv)11-RS2- . 47* +2 S3.00 - 3.6 

1*« .“55 12« 217, 735p InLS+semsiConS; 20% +1* 25c - 07 

.11“ lt ;S 976p 705p L IS bternatiunali 1 944p +19 90c - 5.4 

102% ...1250 12 55 28 18 Kaiser U V, - _ 26* +1 SL60 - 3.4 

127 HighrdDisLSOp. 132 _ 2.9 25 3 

83 (nrerxordun_106 _ 2.23 3.9 3 

109 Irish IXstillers- 153 1355 4 2 3 

270 Macallan. Gtai— 320 _ 4.62 23 - 

360 Morbnd£1- 505 __ 12.45 2.6 

60 . 231 * 

634 -* 3.41 4> 

112 ...1 3 00 2.6 

360 norland £1 
50 Saodeman 
62 Scott & New 30p 
95 Toamln— 

94 Vans_ 

82* Wluihread'A 
185 Holt. Dudley 
145 Youn£Bm".Y 

112 3.00 2.6 

112 -2 +4.02 24 
92* -V* 3 94 2.9 

205 ..... t5J4 3 0 
170 __ 338 35 

- 2?2*i‘ ^75 22b 14* RieiKbtL-MrriLSlb 21 b +1*1 90c - 24 

J : r - w i ' »v nlS 576p 255p Saul'B F.-Sl 482p +29 - - - 

214* § 8* 4 3S SB m g* ff*£og,— g 7i +s »»»“« z 1-3 

lift }jft VSSSZS&e SS: SB SS.gfe j» & +1 j» gg - # 

ili_ life. +1 * ,5-5 I? 7n S 1 D4.’ir»li.&fc0!«. 1H .. .. - f6 7 

96«t) ... 1247 1255 

125b 100% Trea>uiy l» 4 pc 9W - 103bxd 

98^ 85 Eichcquer lObpc 1OT7. 85*nt 

88b 74% rreamrs-SbpcWyr^- 78* 

72b 60 rreasurvSl^pcW-OBtt. 62?a 

135% 118», Trea. I5»2j>c , 98ft-122% 

o;«. 93* Exch.l2pcI9»_ 97* 

90* 77* Treasury9>ipc 1999J4_. 79b 

°6b 83b Treafurr l(?ipc 1999_ 87% 

42i' 34* Fhndim:»ipc VWH .. 36b 

80% 67i? Treasurr apc'CeOflt... 69* 

58b 47% Treasury stpcIB-mt 49* 

3bfll .... 1276 

5*ut . 1216 

78* .1166 

62b .HOI 

22% .13.12 

97* .1259 

79b .1193 

87% . 1230 

36b . 9.67 

69* .... 11.93 
49i* .1167 1191 

975p 505p raoroR.GSSQ.I6:.. 853p +7 — —- — 

22 16^ Texaco 1023_ 21 +* 5200 - 5.4 

40 22% Tune Inc__ 34* +2* 5L50 — 24 

13* 865p TiansamericaSI livd +b 80c — 3.6 

38* 21b lid. Tech. H!55_ 37 +7. S2.00 - 3.1 

13* 865p TransamericaSI_ 

38b 21b l’l4Tech.SUS5._ 

24* 17% 1-5. Steel II__ 

17 11* Wool norths 53 1 ;_ 

46 28% Xerox ijjrp. SI_ 

975p 3o5p LXonics Inc I0c.._. 77! 

58^ | 47% iTreasuiT 5%pc D8-12tt | 49% 1167 1191! ” I gapaaC onxgc | 1 

7 p.'? 62i i measurrTbpc 'I2-I5ii 64*rf 1201 1210: SJB. List Premium 5I9e 1 based 

% j 93»> (Exch Up. IAT> — I 95b “* 1260 1260. Cooverslon factor <L6 


37* [ 30* h'onsols4pc_ 31%ri|.112.49 - ; CANADIi 

37* 29* WarI-oanJjprli_ 31 .1146 - 

39b 33 p onv 3*pc BI \Tt - 34% . 1035 - ! M A Jfi A BkJfaitreal S2_ II 

ZVd +b 80c - 3.6 
37 +7, S200 - 3.1 
21% +b 51.60 — 43 
15b +b S140 — 52 

<B7 e . $200 - 26 

ksIncite_ 775p +45 7*c - 0.5 

ataCorpiSSc | 13 |+* | s3flc | - | 13 

renlmn 5Ht rinsed on USS1.S832 per £) 
ivenion factor 08621 10.6752) 

39b 33 rnnv.3bpe'til Kt — 

28* 23* rrea>my.7pc8S.Ml_ 

24* 19'* ''un«uU 2 bpc_ 

24 19 b Treasuij^JK- 


397 ..1035 - 16A 10A BkMnntreal S2_ 16* +/< S112 - 3.2 

24% u o. _ ' 16* 10,1 Bk. Nora Sent ... 14'.id +* — 3.0 

20b 1210 - -42% 30* Bell Canada S25_40*nJ +* $42 — 49 

20b 1250 _ 22% 12 Bcw ValJeytl- Z2b +* 12*c — 0.3 


«* a Bonvaueyti- zzb +% Ujc — 0.3 

12* 8Z5p Bra sea nJ! _ ll'^rd .. . SllO — 4.8 

*21,1 14 Can Imp Bk SI. 20.1 «d SL44 — 3.3 

14* 955p Can Pacifj.-Sj _ lyjjd+J 4 97c - 33 

88 | 82* |S*St**77-82-1 83b|. .. I 5.97 | 9.93 21* X* iSosfcS'l^'l 3 M d +*" 51.14° - 'll $ 

630 p 315p Hanker Sid CuJ. 540p 40c - 35 ^ 

CORPORATION LOANS ^ 1?? KSVgjp- SaS ^ “ U » 

«Eb 9;?. (Binn'hamWapc79JH..J 94rd|.... 998 1 1163 fe* if5 SfiSSuwii®* ~ ' "£* It j? ~ \n ™ 

94b 88% HrwolTbpcTMl . J 88?J .... 874 1194 2Sf na,Ul11 - ix 8 ~ ' 

m Iffi-kM’JWJE-1 I }VE wtS M nS7:*sT~ 1% OTc — A8 

112 jsrtooswB— mmss&s-- as a 1 800 - 44 

97b 90* I8»w«npr«c... 91b 1014 U-W JS- ! - a 59 p + 5 01 -7 t “ 7*- 

94 90b Herts 5bw76*).— 90?^ 579 11.98 . 9L6c “ 

84* Ito5Lpc*778I- 

87* 76'; toSbKYMI_ 

69 65b DoS:pc-&>87_ 

73 66 DuBbpcmPO_ 

2n* 22* fti3pc-2DAft. 

9?* 91 Middx.$* 4 pc 1980. 

% S3 aa fi«WKSSWr| i55M I mv I -1« 

B'jd . 7.01 10.41; SR fist Premium 51% (Based on $2.1196 per £) 

78*0 . 7.01 10.41; 

6 fl . 8.10 1130; 

66 * ...1014 1209 
23 -b 1349 - 

99* 94* VwcadleQbpc*®*)- 95b .... 971 1177 

lOb-'j 100b l'anncklSAMO—] 101* 1231 1166 *» 



j 69 
37 130 

41 a 

81 I 59 

High Low 

1+ m\ Dir Yld 
I - | Net Cit Gfa l)E 

COMMONWEALTH & AFRICAN LOANS 293 1210 l^nuderenm l§5xil|+S SB — 

3 q °-T 3 V& - 1 S , ‘ . I'm J2*' 334 ^ SBEnSff ST +? U9? i 5 95 l 2 33 

?>> &£S :pc ™ , 2- ¥„ SfS 200 150 .\Died Irish_ 200 7.5 — 5.7 — 

?3!« F> - SI . SS ^-w 165 150 Artnithiwt L £1.. 155 . 10.08 - 9 9 - 

- 2S, e . cS ,1 £13b Bank.uner 51565. U9* +b Q94c - 28 - 

T - -• SS IHl** 315 Bk.Ireland£I.„ 390 -3 15.00 — 5.8 - 

TWBWK.^-.. 82b 9.14 0.B £]S0 037 DalOprOMK- £180 ^1 Q10S — (5.7 - 

I Un^Si.pcTSBI 95 10.22 12.U n\ 15 BtLeomi 1£1„ 18 Q169. - 2.9 — 

52 +1 - - 170 150 BLLeumi.UKfL 160 ....7.36 15 7.0143 

. 82+1 - _ 575 380 BtX.SWSA2_. 555 -5 1Q30c - 33 - 

__ 315 255 Bank Scotland El 2B8 ..10.89 3.6 5.7 7.4 

loans gf - g* Bass* gf 4 S Sg-S 53 H » 

Public Board and Ind. m ™ Rs&PiSg 1 - SI- ■ ■ ~ Ai ~ 

''' 92 72 

[18c I — | 3.61 — 78 66 

133 - 9.3 - 75 55 

— 33 22 

991- 9fr% N7.4pcT6.7R- « 

•9o* 92b DofipcTMn_ « 

87b 81b rvtTTjKBMS- I 

95* 91 Sth vTrn-aSi.pcTMl 1 

70 50 Sth. Rhixl 2>>pc < fi>70.. ! 

96 80 DadpcTMl. I 


89 3 W 5.7 7.4 
.00 -J 6.0 - 
08 5 i 6 II 5.6 

6 J* Fp; Acne M: ap- aMS . 
90* 80 b \ 1 . jp liu-pv- ft+W .. 
35b 28* 'MWtr.^v'B — 
;?9 1(17 l SMi Rif 19ft! . . 
95* 68 Lb. mthi'Ut Warrant- . 

id Ind- 230 ^ BWwStaphtEL- 225 .. 927 - 62 - 

" , . , —273 232 CaicrHjwrEI- 255<c . ,.hl6.91 - 10.0 - 

61 . 823 1133 82 67 tlmDu'BSfc • 79 +1 4.78 - 9i - 

81* . 13.14 1360 . 2+0 171 CoralA ib iJVli. 215 +2 tOlbc 2 b «J> 8.4 

2^4 .... 10 87 1256 ‘U9 £12?a ComrbkDMIM. 07:? . QIB 11 * — 27 — 

ZB* ... 1087 1256 *£19 £12* 

™ . AH ,r M £Ubcis 


89 |.(1027 | 13.00 25 18 tanndiian lOp.. 23 +l' 

u'zbk DM 10*. £171; 
5 n.HM.fu LOO £18 

£24 £13% Cred FWnreFTS £22* -b 5937!J — J 2.91 — 

7 [Dawes'G.R.'_[ 17 

l?' 1 - “1 - y +, ‘ HIS “=3 £90 MSetakdDi 

V;0 102 I in Mp.: T9 .— 1041; 1383 1330 53 53 FC. Finance_ 

1141; 102* Ik. UpcK,. 

85 7°i : Ii F<■.»*■«■ Dch aWC . 

PI* 73b Du Ki.pL-Ph. S14H- . 
99 891; IV) |iK ;r ^ Ijn« Lu W- 

991 , 90*. ^ ita-lnsLa BS „ 
101* 90* D 11 ll-a|Kl!ns.|jt 9U.. 
71* 67*.. n- T'.p^AlWc»92_ 
71-; iC Ls. 7>ap.- \ I«b. 

841; 73 b Ivi9oi"V ai «_ 



U4%]. Q1B+b] - 

76 +3 200 26 

-153* I 42* 

^h.w ass ? n-r* 

■■ ■ o'm TTJin i * Do Witts .>83. * .... — — — — l« 

of 2 h tftfc H-28 121; lfl Fraser.\ns.H>p. 10 . - - - - 117 

«l TTQ 7 M4D 1% 157 ««"*?* Natn L- 177 ....817 - 7.0 - 81 

21- 4 t?™ 50 37 I'.ihhpiAi- 46 +2 220 — 72 - 31 

tJ* -■ 19 on 255 195 GiUett Brw.El- 222 -3 1538 — 10.4 _ 48 

r}. 29 19 GcodeDlMiy.5p 22 . 013 -0.9- 87 

* it 10 120 06 Grindlaj#- 116 . 275 7 2 3.6 4.0 *113 

Zia tint txan 260 Ws '^ane^Peal— 240 -2 tlO.O - 6 3 - 14 

69m .... 33.4 » j17 ^5 Hamlffos_ 168 -3 9.61 — 9 0 — 68 

100 81 Hill Samuel- 92 +1 4.90 - 8.1 — 39 

I Sr RATIS 60C1 325 Do Warrants _ 350 . _ — — — 103 

I 04 luUIiO 347 203 Hou=an25UO. 315 -1 h059c _ 2.2 — 140 

l+arlDhr^l Red. 69 52 iesselTojnfoee- 56 . 63 27 — 8.9 - 185 

- (ire* Yield 215 160 Joseph.Leo'U- 205ri. 8.61 - 64-108 

52 37 Keyserlllnann. 52 . 0.66 — 1.9 — 280 

*1 - - 74 56 Kins & Shan3)p. 59 *2 339 - 87 — 57% 

+2 - — 114 90 KleinrrortBL— 98 .4.12 - 64 — 113 

d . - D10 297 242 UoydsEl 275 -7 9 09 5.5 5 0 55 175 

?* ,50* 42 Manson Fin.3)p. 47 +2 e3.07 6 103 4> 147 

3 1 ; ft S W5 HemurSecs— 109xd -2 3.75 - 5.2 — 139 

a ' S «« ‘ 3 , W ”0 Midland£1 360 -5 14.75 4 3 6 2 5.6 148 

id .... 4 14.65 £92 £78 Do.T*;*<83-9S„ £82%-* 071^ 23,1 (93 — 86 

. «* 5 00 £95b £821? Dal(A : 193«_ £86 -7-Oftti &J - 100 

— 12-M 64i’ 56 Minster Assets— 58 . 335 23 93 66 112 


- 41 

% .... _ - - - 

I9TS | [ Price 

Hipb Lmr | Suck | £ 

24 17 Antof.uaJa R|r_ 24 

JO ?J lm ipc rrel - - 40 

°R 98 Chilean Mixed . 9 S* 

415 350 ■•cnnnn Ync. 4*pc 405 
fa a» Crock Tor .V* 54 

6 ! 4(j [k.fipfdSUfo Av 51 

44 40 [Ki4p:Mi\c*l A*s 43* 

55 42 Hunc 24 A-. . 55 

77 d 5 lcvland 8 *pcKM 8 65 

Price + «r| Dh- 1 Red. 
£ — I Orem YleU 

.. .817 - 7.0 - 81 57 

+2 Z20 —7-2-31 14 

-3 15J8 — 10.4 _ 48 38 

. 0 13 - 0.9 - 87 73 

. 2.75 7 2 3.6 4.0 *113 65 

59c - 2.3— 140 
27 — I 8.3 - 185 

6 J6.00 - 390 330 Midland£1 360 -5 14.75 

4 14.65 £92 £78 DaT-^SJ-SS- £82% -% Q7%% 

4* 5W £95% £82l 2 DaHA ; i9388_ £86 ... .. ffiAv 

— 12.60 64i’ 56 Minster Assets _ 58 . 355 



Telex: Editorial 886341/2. 883897. Advertisements: 885033. Telegrams: Finantimo, London PS4. ^ 

Telephone: 01-248 8000. 412 

For Share Index and Business News Summary in London. Birmingham, 144 

Liverpool and Manchester. Tel: 246 8026 


Ani.liTdain P.". 16« IJW. .Xiiislvnlaiii 
Tclc\ ILliTE Tel. L’+» 

Rirutn-.'liani iivorce H«*um\ in-*r.-e 
Tplt-\ .ttta&i Ti*l irjl.+M use: 

Brnui PiTssliiiiis II 1iM lli'iuniillrc . III. 

Telex B8«t.‘ri2 Tel. 2HWW 
Hrn.’sclt. .19 Hue IXh.iIv 
T eles. ZUKi Tel: M 2 ȣtT 
Cainr P*» Box 2040. 

Tel: 8383111 

Puhlin: « PitrvilliJm Square. 

1vW\ -»m Tel 7R\Kl 
Eihnhur^h ITT lieor.'e Street 
Telex TJ+34 Tel Utl 23J 4120 
Fr.inkfurt: Im Saelwenlnqer 13. 

Tiic.\. 4ICJSJ Tel SAST.W 
Joii.annestuirc I*«l Bex -128 
Telex IW12.TT Tel JS6+TS43 
Li Ifii p+jia rf:i \le*^ria 38-ID. Lisbon X 
Teles IS9S5 Tel- \KZ 108 ' 

M.nliid- Il.priim-i-da 32. Mii’lnd 3. 

Tel +41 0772 


Kirnuiich.mi lioorci* Huiim*. ileor^e Kihid. 

Telex :iMi.«l T« l IK!!-4M OKS! 
E'llili+ur^li- :t7 Ihsim* Slnvl. 

Ti lt'. TiMtH r>*L mi 3 Jills 
Frsu.Mnn* Im 'S:i. l 1 «..|,|.,, ;v .“ IX 
Tv!i". IbTi.'.: TH .iSiMT 
tan.l-. |trrm*ni>'ii a . lloii’C. The 1 loln-ir. 

t> i lira: 4««nw 

M.inehe-ter Queen’s House. Queen Street 
Telex 066S13 Tel: 0S1«M 93SI 
Sluwow: Sodox-o-Samoteehnava 12-24. Apt 15. 

Tele* TSOO Tel 294 3T48 
New Yurie 73 Rockefeller Pfcua. N.Y. 10018, 
Telex 0639O Tel: i212l Ml 4625 
Fans. 30 Roc du Sentier. 73002. 

Tele* 220M4 Tel: 2365743. 

Rio de Janeiro; Axerada Pres. Vargas 418-10. 
Tel: 233 45M8 

Home: Via della Mereede 55. 

Telex 61032 Tel- «78 3314 




84 | 63 

s 2 jSs i.a imz % i s' sssfci a ii* m 


99 I—*J 12.79 

138x3 . t5.0 12.7 5J 6.4 hj 593 

77 -1 d2.49 35 4.9t65i 150 128 

116 -* 5.84 <J> 80 * U7 94 

62 +f 3.06 4> 7.7 133 99 

5-3 c 6 / 59% Cab Worn 

4.flt65i 150 12 a Campbell 

Campbell Ishwd. 

62 +r 3.06 * 7.71 • ' 133 99 OcKlR.Serv.5p_ 124 -2 1taJ234 4.t 

M . ±178 3-4, n fll4S7i 27 17 CraxETlnmif 10p_ 26 .._.+gl.45 2J 

40 ..... 2.70 1010^75 21 15 CreQtmlOp - 17 . — — 

83 +2 4.67 ♦. 8S] * 22 8b Da lie Con. 99-8L 17 -* Q12% L! 

95 . 4.80 * 7.71 ♦ 162 12§ DaieHert. 10p_ 152xd . C2.72 4.1 

11 I-1 d0.75 


63 . 319 7.3102 500 

36 . 2.70 L71L3 7J is 14% DerritroclDp_17*ai -* 0.73 <f 

89d .. . 3J1 f 6.0 * 16% 10* Dewfanrst'A'lOp 15 +% «.83 11 

15 -1 65 19 8.6 4.0 30 20 Dowdmg4X5p. 30 +1 +L08 2_1 

S -E - ?i 0 W ZA In i S 33 19 Dreamland 10p_ 33 +1 hLZ7 32 

97 -5 * 72 6 2^ 14% Dnhilier5p-20 . U0.99 L9 

!7SaJ ...... tn.55 3.4 6.4 55 190 130 ESDMp_ 143 -1 924 19 

115 -1 6.5 2.9^ 8 

353 . d4.84 7.H 4. 

97 -5 4.58 * 1 7. 

275n) .11155 54 6. 

42% -1 12.62 0.<* 9. 
100 ....- 5.44 33| R 
153 +1 t3B8 133 3. 
142 +2 M4.6J 5.l| 5. 



r ^> 006* £92 DoBi.ACwjv.Bl £94 .Q8%% 27 j 

" 478 318 Hect comps lOp. 477 -1 5.05 ♦ 

H 37 17 Electro nicMact 24 . — — 

131 106 Qec Rentals lOp 123 . 5.0 21 

9 fcfifc H 

81 -1 dA.5 22 R4 fMi 

98 _ 432 27 6.7 83 

83 ...... 23 32 3.7123 

100 . d2.43 6 3 3.7 6.6 

33% +% 130 23 62 93 

37 . 2.26 1.9 9.6 83 

1186 jFarneUHec.aip 

2S 32 37 123 if* “ FidelityRad. IOp 78 ..-..533 X! 

i 3 y yij I & ™ Ttt y 

i, y g H » ! a ESMSe ^ a- OL h i 

nn fi 7 $ 134 _77 KodelnL _ 134 +3 4.7 3.0 I 

158 +2 +525 3 8 5.1 77 

38 +* 163 4 8 63 4.7 

«1 . H159 22 7.0 7.9 

41 .tdZDO 4.6 7.4 4.9 

f’c Li 125 102 Laurence Scott- 107 _ $5.0 3. 

70 70 M lUsBe&is_ 70 — dZ59 5. 

£-y /■’I iqn 1T7 hi ir pioMri- ism -l A 4 d. 

7.4| 4.9 It! 

190 137 btKHectric— MW -1 §5 4.« f 

202 156 (Moirhead. 

20 - 2 " 160 1 J 1 T 1 J Tel , 93 67i 2 NeBinanLHis— 80 +1 5.0 37 

153 —1 9 80 H 180 158 Nevtmrt Louis- 174 . 1402 5J 42 

3U -2 7 60 i II VJi HI ^ » NonnaodS.SOp. 43 2.S3 ♦M.0 4 

ii‘& Arnold I 133 

362 -2 7.60 55 3.A 8.6 r5i 

?77 . 20 M 2J|llol 5.5 mJ 

aoGmertocJ £90 1+3 

■ OT £69 Patinflmertac- £90 +3 'Q4WHVH. 

^Sl |-5 224 380 PettxnrHldglop 224 -dR6l] 4 5 

ill .Him 17 * i E 7 JOU rxiwiuutii-H “j -—ajr;--, 

. in nr i 2 ii V £58* £52% Philips Fin.5*% £54 ...... ^5? 

. JK # * o q ,J. £10 710 Philipsli-FlO— 928 +13 017% 

S . ll 2- 9 13-5 111 84 PffreW»30p. 88 . ji7 

* . ?g UAl 109 84 DoC.VS>p 

.!S?u in 87 P,p ^' 50 P 

|| ^64 1.0121.119. gs 59% PressaclOp 

if? ~ UL U4 85 FreHide*- 

1 JJ. . hfjo >8 3 810.4 255 196 McalHwIi 

49* ... La 37 4.6 9.0 07 gy? BedifTusii'c 

105 -8 41521 0.7 7.5 MS 55 T Rotaflexii.E 

« .... >57 3.0 9J 5.4 295 35-3 SetatetCH 

34 . 0.99 4.3 44 63 740 456 SonvCixYa 

271? +% tl .55 12 86 8.0 50 33 SoundKfl* 

IM" ...... ri2.50 10.1 2.7 55 g 33 TrirfusimJ 

77 -% 0.68 15.3 L3 75 39 33 Do.-A'XV 


£11*1600 IAK20_| £10*1+% I - I-] 

H264 1.01121 illt- 89 59% Prewar !Up__ 89 _ tZ7 35 4.61 

313 1.9 8818.1 114 85 pveHKtov._ 87 -2 357 45 6.3 

>1^80 3.S3810.4 255 194 a#calH«<tllCS... 248 -3 3.88 q62 2.1 

1-3 3 3 4.6 9.0 57 861? BediTTusiw- 86 %a) -% 4.79 16 8.1 

41521 O.J 7.5 ini 55 44 Rouflexii.B.10p 5l . 16 35 < 

!S 2-1 M 295 253 ScbalesiCHi— 265 - 16^5 13 « 

0-W 4.a 4.4 6 3 740 456 SoiitC&.Y3Q_ 640 . Q5Q% <6 0.9 di 

tl.55 2^ 86 8.0 50 33 SoondKfltfi.5p. 41 -1 122 * 4.6 * 

d2.50 10.ll 2.7 51 41 33 TelefuaimSp— 37 _tU7 3.6 4.8 (64 

0.68 15.11 13 75 39 33 Do.-.VX-VSp_ 36 . *117 3 6 4.9.62 

139 111 Tela Rentals-— 139 +1 5.84 20 6.4 1 ” 

392 308 Thom Elect — 352 -2 1145 q3 4 5.1 

ISTICS 67 52 ThtpeP.«.IOp? 64 . +147 53 3-‘ 

8? 5: 

0.99 4. 

ClObl+b I — _ | —J -=-,L—J 322 

126 88 IFuitrehlOp_ 126 T3.62 2ffl 4 

* . , J , “ „ . . „ , . 187 86 Albnght Wilson. W7 44.61 33 3 7 10.5 105 83 Ward tGold— 86 +2 th4 07 3.6 72 

Si^kholuv c o^enakaDachUdeL Raalambsiagen 7 295 253 AldnSe Inds.— 275 .dl396 21 7.7 7.9 -25* 20* WelicoHldi5p- 23 . 0.13 83 7.4 

Tcl« 17903 Tel: 50 60 88 97 84 AfidaPack I 0 p_ 92 632 2110.4 58 56 42 WeguylwnalZ 54 -2 233 3.3 6.0 

Tehran: PO R<n 11-IST9 TO 61 AD’d Coiicud lOp 68 . 169 * 3.8 19 14 vniitwxthELSj 17 . 0.66 3.7 5.9 

Telex 21304 Tel: 6823S3 79 60 Anchor Cbm.67 . d416 24 9.4 J2 146 122 SYlesaie RfrSOp. 146 +2 +4.79 2.9 5.010 

Tokjo: 8th Floor. Nihon Keizai ShJmh-m £57 £40* BM.ttHUt £501; sQll\ 14 3.0 226 276 146 RlgUll,tt>- 226 -NdU5 tb 9.4 A 

Tehran: PO Rm 11-1579 
Telex ZIIKH Tel: 682SS3 
Tokyo: Sth Floor. Nihon Keiaai Shimbun 
Building. 13-o QtemaCbi. Chi^da-ku. 
Telex J 27104 Tel: 341 2920 
AVjshi=iSoti 2nd Floor. 1323 E. Street. 
SW. Wanhinirtoa DC 20004 
Telex +40228 Tel. i2Ct2i J47 6dTS 

Marrheeler Queon s Hou-u* Queen street. 

Telex- dtitiSLl Tel. 06 1 -SJi 9381 
NVu York To Rockefeller Plaro. N.V. 10U1S 
Telex 425UU5 Tel. .212' 488 8300 
Fan, 36 Rmc- du aeaiier. 75002. 

Telex 2200+4 TxH. ±3dfln0l 
T«»kin Kaeahara ft mid me I n -]0 l.hikanda. 
Chl>ndJ-ku Telex J 27104 Tel 233 + 11 .W 

£57 £40* Borer AG. P1L59 £501; . -IJIT*, 3.0 226 

254 122 BlasdenNoakcs. 252 -2 i20 19^7.210.6 

■191 134 Brent diems UJp 178«d -1 MM2 60 26 15.2 

25 19 BriLBcnadlOp- 21* .*12 5.3 +3.2 

-59* 45 BriLTarPidlOp 59n . ... t2.08 *1 5.3 -b 

14% 10* Burrell jp_ 12-b+b 0.92 Wll.OlBi 

m Si Carle,;(.ape! '.(* J 32 —.042 4>j 4.fl 4>112 h(J5 UC£»*'DB5- 108 .338 29 4/ 

OR ran Si-Tr . MtM' U80 .VP.V.sOp._ 225 -5 5.71 4.4 IB 

SI, * SI “ 116 3M Uw* _U2 .22B 3.8 

£99 £89* DofaCirf: M. £91 

• 2$ “ 93 68 '£»,'A”™ 

CT8i?£TO JV*VAl»C96 £M! 2 -* i»ji% *jr94 _ 272 225 AdWGroup.- 262 -2 F10.0 33 j*d 

79 M _1 VA 148 Alcan AhunnuBU 149 +1 9.90 2910,1 

78 39 c SSf? 5 SR?—’ V . SIa 1-9 x§ 2 5 £159 mb D0.9pcconv.__ tws . 09% 253 (63 - 

'j- i 5 o- .P 0 -C 2, •■ •232 3 8 4 8 8.3 65 47 Allen 1 E 1 Raifour 48m . 4 33 * 13.7 

24-; 19 ;: .on; W? 067 5S « 6 5 56 37 AltaiWG-50 . c2.82 3.5 8.5 

Ml ft: J-xoiMWl. IOp- . 55* - * 219 3 B 60 6.7 140 108 +nul Poner ... 140 . 5.28 5.4 5 7 

« S. m'VlMSF*?— . BP b9 ** And«n.ScLxde_ 69 . 233 $ 6.2 

57 46 tnalen PJa^tiesw 46 . 4 51 1.0(14 8110 43 32 Anelo-Sirisx.-34 . — _ _ _ 

48 .-| 0.66 


Copies .■bUinable (mm ne*xa^ent-aro! VhkiV>MM y «..x r :d-».- 1 e nr o~ reaular suhscrintioa Iwm 
&uU„-riptioa DepjrinienL Financial Tides. London P 

50 3b farm feed_ 48 . 0.66 4 

394 325 n-ixi‘t;... 365 -2 1285 3( 

24b 13+ Hjtlea,|.i !(% 22% *b tfl.32 3.i 

223 156 HLra Welrh jdp 193 -2 nlii.-li 71 

534 Vb llnn-hii DUS. . 496 T 17 Q16", *’ 

£125 illZ-i ItFiW.lcJi. £117*!-* Q10+. — 

1 + 0 43 32 Ando-SirUs._ 34 . — — — — 

* 125 111 A,ii4Lat}_124 . d6.63 2.4 83 7 

7.3 8b 5* .V-x Brili+h IBav 7 . B— — — « 

V2, 3B 25 v^iOC T-«lin=_ 32 . 2.3 0.610.9 X 

58 23 18 s ? Astra Inal IOp.. 221; . tlOl 29 6.8 5 

* 100 79 Aurora Hid:- 92 -1 52B 3 8 8.7 - 

- 115 92 Aiuluilamesi- 104 +1 T5J 22 7.7 L 

i ...... O.ob * 2.1 | 125 ill A.<n4Ucj _124 .... 

' -? 12.8? 30 5.3 7.3 8b 5* Av> British 1 Eg. 1 .... 

% *b +0.32 3.7 2.2 R2- 3B 25 T.«li n =_ 32 .... 

-2 "h3.49 77 27 56 23 18 s ? Astra Inal. IOp.. 221; .... 

' +JV Q16", r J? ♦ 100 79 Aurora Hid:- 92 -1 

— i 115 | 92 l-buluulamdi—[ 104 +1 j 15 J 

(onn5p__ 79 -1 133 14.6 

beDIstal 130 .... 290 101 

deGrp.— 115 -2 524 j 1.7 

Da‘.V - 403 1-2 110.7 

+3 T 6i. I 3.< 

ISO -? t5.0 3.« { 

SBfcd.B tHH 

15%% — Dfl. 
>17% 20 t 
27 4.9 4.i 

2.7 49 4.' 

t : td SdenuGe— 309 -1 I M6.0! 8.0j 2 

|WigblitHj-[226 [-|XdU5| 


Kalamazoo life 

Kennedy Sm. lop 

86 xd 



Lebusltals^. 37 
Leigh Inis. 5p._ 148 
UwureCsr.iOp. 130 
5 IepGrouplftx.. 240 
57 Lemej Prods. 5p 78 
I 98 Letrase ;141 

15 UdpnlDp._ 19 

.32 Undraj-iffns- 52 

128 lindmnc«- 144 

24 LmlA.VUdlGtp^ 291a 

34 long HmWy. lW 39 

Forbes »p. 


Gumnercial Vehicles 






Nril&Sp-nrerlOpI 104 


= » 




I9.4I — 95 
7.2 “ 


2L* g 

s 87 

M625 2i 
17.75 2.- 
2.13 3.1 

tL38 4.1 
1L9B 2- 
tL42 2J 
6.40 2J 
d2.4 4 

tdl.7 4i 
131 * 

457 2J 
Z81- 3.‘ 
155 « 

L25 U 
dH).46 17.< 


0.63 27.1 
2-2 25 

J^nitr national 




1978 1 j [+ * 

High Low ) Sock | Price | — 

210 155 FakmjRh.iOf ... 175 . 

24 15 RliednCoro. lp # . 16 . 

80 52 RdanCons.K4_ 67 

175 122 Tanganyika 50p_ 160 +5 

90 78 I'O.ITrf Wp- 87 . 

41 52 WankfeCol Rh.l_ 35 . 

lb >2 10 Zum.l'prSBCiOlM. 14 


15 10 |AmR25r 14 .... 

132 64 liaataiffiiUcMTiiea 121 

125 63 BHsiouibMc ___ 110 +1 

“Tfl 150 Central Pariiic_ 550 . 

148 ronzmeRirtiiilgaOr 244 +2 

45 IlM.KalifoorlieSl. 46 +1 

81 Ha&mtn.Mvk-ap.. 134«d .... 
10 MetalsEt-SUc 29 rl 

125 SIJ M.Htdas:*:- 206 .... 

1 10 Mount (yell 'Se_ 28 . 

1 lb Nenneui hip _ 4Ji .... 

7$ North B Hi 1130c_ 124 +3 

8 b NllLKalgurli_ 13 

lit OukbnUeeSU_ 167 -1 

50 30 Facilic Copper._ 47 .... 

C14J* 750 hmcmt'lix_£13'j +> 4 

40 12 PamwaMlELSp, 35ij -b 

538 310 PibvWalUivlSfli.- 520 +$ 

300 50 Southern Paflfn„ 218 tB 

60 84 Wean. Minim to. 144 .. . 

70 35 Whim tack to.._ 50 -2 

|+ eri fhv. 1V1* 
I — J Vc C'rrllir* 

+5 Q100 151 6 2 

. W. 163 8 3 

. tQ7lje 1.4118 3 

14 .... - - -. 

221 ... Q8c 1.4 41 

110 +1 - _ 

550 . _. 

244 -1-2 QlOc 12 26 

46+1 - - - . 

134 id .. .. t3.5 20 4.0. 

29+1 - - - 

206 . Q9l* L7 27 

28 . — — — 

4b .... - - _ • 

124 +3 Q8c 15 4 0. 

167 -1 tQUe US 4L 

47 .. .. — — — 

£13'. +» 4 - - - 

351. -b _ _ _ 

520 +5 Q15c 4.0 18 

218 *8 - - - 
144 .. . iQ6c 14 i 

50-2 - - - 

37J Z 25 
114 85 

[in 55 
I 72 77 

I ss> 

d> no 

,*.9 4g 
« £ 
ilo 0 





38i 2 I 29 
72 62 

n50pl 183 
r.ttp Biss- 
B-l £44Sg 





133 a) I_ 

71 Ill” 
28 _ 

iB = 

■« 2 


[ert'nj Jniy. lDp. 


69i z ' 




54 44« 2 

lg! 31V 

72 48 

««« ^ 

77 64 








3.5 y.. 
35 VM 2 

6a ® 

51 5 ? 
85 g 


113 -+2 
143 - -1 
50 -1 




Mitchell Cotts_] 41 

Nigerian Elec. £1[ 240 

30 24 \mal Nigeria __ 

100 240 AjerllilamSML... 

60 45 Derail Tin __ 

300 200 BerjunUiSMI_ 

145 111 Gwvitf _ 

10 8b U>ld6E»el2>.s>.- 

300 220 fripeni: Tuns_ 

1&5 130 Honpkinij:_ 

93 78 Idris IOp_ 

11 10 Molar 133 ) . 

7 68 KamuntincSHO.'iO. 

' 450 KSliochall. _ 

280 Uaiai Lw-dtuieSMl. 
73 40 ftPahani;- 

62 50 PmaLilen Hip_ 

230 165 WaliBU$Ml.._». 

61 49 Saint Pi ran- 

61 47 South Croll U Up. 

140 SvulhKjnijSNhl.W 
230 Slhn Malayan SMI. 
134 SonCeiBc-iSSlI. .. 
55 Jiupmne ferp. $M I 
mu 85 Tanimelap 

74 Tom»tuillrt>r SMI 
233 148 TrouuhSUI. 


._| 25 

.... 380 


32 51 1.6)15.2> 
njfls’r 0 9 i 
375 44115 

295 .hQUOi 6 

ZOlSic 07 4 3' 
0125 * 26 7 
«M5e 08 5 0 
W 75i 0 5 $ 

6 5 13 161 

tOBOf lb 80 
iH 99 4 6 5 6 
4.13 2.0 11 3 

1077 5c 14 60 


. 0125 

. «M5c 

. W75i 

. 65 

:::::: X 

. 4.13 

. 1077 5 c 



. 65 


(2 81 

l * 7 ' 61 35 Barvmm_ 

gj 17 9 Burma Mines 17t : p. 

3 9 300 220 Cr>n= Miuvh. 10 c__ 

37 165 245 N'orthplcfSl.... 

5 1 234 164 RTZ._.. 

90 30 Sabina Jnrf& CS1_ 

0.2 750 TaraEupln.Sl_ 

45 43 Tehidv Mineral:. IQp 

180 120 Yukon Cons. CS 1 „. 

233 1148 iTrouuhSUI.| 227 |.|2Q88r[ 16) 


100 |70 tMessiiuROtt.| 91 )+l |tQ30c-| 1.9) 


61 I 35 I Ban mm_I 54 1+1 | -4 _l 

235 -10 fQ30c 2 6 ¥ 

450 +5 - - - 

218 -3 95 28 66 

61+2 - - - ' 

850 . - - 

43 .>... 133 * 4 r 

166 . Q7e 29 20 


- 58 
10.0 69t 
* 120 
5.4 186 
l5J' 248 
17.71 151, 
11 39 

BUlon 1 Percy) 


88 iPsdniwe’&rfs-iOp 

332 feS 
45 30 


__ M.75 



+2 I 5.0 


-b 439 

264 +9 
288 +9 
£34»b +H 
132 -1 


(talcs* oUworwur Iwllcalcd. prices and art illildnd] are In' 
4.7] 4.5 peace amt dmctnl nations w SBp. EsthnaM price/earn Iors 
13 5.0 nUsa and ctnren are hnedon latest sonnalrapsTtauMlaccaanic 

!_ _ and. where pntlUe. are updated « half-yearly flmm. ribin 

IQ 4 2 calealatcd on the basis of net dMrihultoa: bracketed ftforri" 
in 17 ladicMe 10 per cot, or mare dUfrrrare If cotraiaied an "nil'’ 
i] jt distribution. Covert are baaed on -maximum - dtatribotlan. 
19 in a VWds are bated en middle prices, arr etow.. adjusted ta ACT of' 
ii M per cent, and allow far iwlue ef declared dHtribo'.loai ana¬ 
s', »■£ rights, fieenrtttis with rieaomlnntktnB other than elertinR ana 
J-o h .4 qwpicd Inclustre of the Imeaunent dollar premium. 

“ “ 5-7 

3.7 6 Sterling denominated securities which include InvesUnont- 
13 3.4 dollar premium. 

0.8 43 • -Tap-Stock 

11 3.7 * With* and Lows marked thus have been adjusted to allow 
19 43 for right* issues lor rash. 

31 I* f Intenm unco imreased or returned. 

2.0 41 1 interim sinee reduced, passed or deferred. 

19 V? ti Tax-free to non residents on application. 

+.71 Figures or report awaited. 

It Unlisted security. 
t Price at time of suspension. 

4 Indicated dividend after pending scrip and'or rights IssUK 
cover relates to previous'dividends or forecasts. 

0 Merger bid or reorganisation In progreis- 
f. Not comparable. 

5.9) 5.9 £ Same interim, reduced final and/or reduced earning* 
49 gf indicated. 

17 ga i Forecast dividend-, cover on earnings updated by latest . 
11 20 ? Intenm oatemem. 

ic y t Cover allows for conversion of shares not now ranking for . 1 

fca si diridends or ranking only for restricted dividend. 

97 on 8 Cover does not allow for shares which may alto rank (nr 
“ £.Jj dividend at a future dale. No P.'E ratio usually provided. 

5 » ,6.2 v Excluding u final dividend declaration. 

31 103 f Regional prlrc. 

4.9 10a V No par value. 

4.7] 73 a Tax tree, b Figures based on prospectus or other oFfimai- 
esUmale. c Cents, d Dividend rue paid or payable on part.' 
of capital; cover bused on dividend on full capnaL..- 
e Redemption yield. ! Flat yield- K Assumed dividend and-- 
yield, h Assumed dividend and yield after scrip Issue. 
j Payment from capital sources, k Kenya, n Imerim higher 
Chan previous total, n Rights issue pending 4 Earnings- 
based on preliminary figures 1 Dividend and yield exclude *■ 
special payment, t Indicated dividend: cover relates la 
previous dividend. P/E ratio bawd on latest annual 
esntinju. ( Foreenst dividend cover based on previous yes r's 
earnings, r Tax free up to 3Up in the C. w Yield allows lor 
eurrency clause, y Dividend and yield based on merger terms, 
t Dividend and yield include a special payment. Cover docs not „ 
apply to special payment. A Net dividend and yield B ■ 

! Preference dividend passed or deferred. C Canadian. E Issue 
price F Dividend and yield based on- prospectus or oLher,. 
official estimates lor 1117910. C Amurard dividend and yield ■ 
after pending scrip and/or rights issue. H Dividend and yield 
bued on prospectus or otber official estimate* lor 
1978-79. K Figures based on prospectus or idher official, 
estimate* lor IS7& M Dividend and yield ba«ed on prospertas 
or other official estimates for IffiB N Dividend and yield - 
based on prospectus or other official estimates for 1078. P 
Figures bated on prospectus of other official niimales for. 
1D7B-7U Q Gross. T Figures assumed. Z Dividend total to 
dale, ff Yield based on assumption Treasury Bill Rile stay*' 
__ unchanged until maturity of stock. 

— 1.0 

1-812.6 Abbrevisi Ion*- dex dividend: set scrip issue; «r ex righta:» ex - 
1-8 5.4 nil; « ex capital dlstribuiion. 

tQ3c I 11 3.9 __.... 

tQ46c| 3.0 59.1 « Recent Issues ” and “ Rights " Page 34 

0.4 32J -- 

^ 6 ? This service is nailable to every Company dealt in on 
Stock Exchanges throughout the United Kingdom tor a 
fee of £480 per annum for each security 

U2 95s 
102 77 

230 193 
124 115 
190 129 
62*2 53 
63 47 

44*2 36 
77 M 

10312 73 

„5712 48 

s-a# 4» a 

263} 75s 6 

M.9H73 140 
l«H 61 47b 

2 S.8f 26 22. 

lOffl 9 • b 

.-J 41 34lj 

599 7Bi 2 60 

ilUJ 12 91? 

. SSiJlM S6 

* 1 231 * 1170 140 



||§j Industrials 

S-month Call Rates 

.LCJ_20 jTuboInvest- 30 J 

l-'Imps'*_ 6 I Unilever—__ 35 

7 0 A.Brew .... 61s ''Imps’’_ 6 Unilever—__ 351 

91 AJcS^nt- 1 1 f-C-L..-20 U^Dnipcry. ^ 

70 BAR.. _ 9 Inveresk.^.— 8 \iel«rs_-.-~_ 15 I 

iSbrociTZl... U KCA-3 Wool worths5 | 

77 Barclays Bank. 25 U»d broke-H , 

11 BeechaSn_ M tGeo..- 14 Property 

“■9 Boots Drug— J5 I^xSereice... 7 BriLLand-... 31,1 

f-3 Bowaiers- 16 UoydsBankn 22 (.no Counties. ^ 

3.6 BAT..• 24 Uofs-- 4 E.p... _( 5 * 

British Chyccn 

[Uondon Bncjr. 


Brown ij.i.. . 20 Uonrho^._.- 5 Land Secs.1£ 

Burton A'.- |2 Ucaslnds..... 25 MEPC..12 

Uadbims. 5 LyonsiJ * • *0 Pearhev-.. g 

Comtaulds - - 10 “Mams Samuel Wops.. 9 

Debenbams— 8 w Town ffc City_. 1U 

Distillers «-••• 15 Midland 25 

Dtmlop 7 .... ^ Oils 

EJ 4 i lar j4 ' Worronds 10 grit Fetortwin. 45 
OoL Acrideni 17 Pi.ODfd.__ 8 Bunnahnil 5 

Gen, Eldctnc- 18 Plessey-8 Chorteriwli.- | 

Croud 9 RankOrg -AV If Ultromar-_] 20 

C.UA'A'_ 20 ReedIntnl— 12 

ufirtAT- 18 Sellers-3 

«.K.N.„. 73. Tfesco-- 4 CharterCniw .) 121 

HawkorFidd.. 20 Thoni -22 Cons Gold 14 I 

Honseof Fraser 22 Trust Houses.. 15 R»oT.Zint-.._l 16 

A select ion of 
• IkindoU Si 

f Options traded it given on ihe 

lock Exchange Report page 


[ Factories! 

and 1 

r Phone~ 




Wednesday July 19 1978 

Creating hn es lor Imliftuy 



Japan plans new measures 


Japanese Prime Minister, said 
today that his Government was 
planning new measures lu make 
it easier for foreign Govern¬ 
ments and companies to borrow 
on the .Japanese capital market, 
and to encourage increased over¬ 
seas investment by Japanese 

These actions would be in 
addition to i he measures to 
which Japan com nutted itself al 
the end of Lhe seven-nation 
economic summit in Bonn yester¬ 
day. which were intended speci¬ 
fically to bring about a reduction 
nr rhe surplus on its current 

Mr. Fukuda. in Brussels on 
the first official visit ever made 


by a Japanese Prime Minister 
to the £ZC Commission, said 
that the planned measures on 
capital account would be aimed 
particularly at facilitating the 
dotation of bonds by foreign 
official and private issuers. 

lie did not say exactly what 
form they would take or when 
they would come into effect. 

He also emphasised strongly 
that the successful implementa¬ 
tion of his Government's 
pledges in Bonn to try to reduce 
its current account surplus 
would depend critically on the 
ability of other industrialised 
countries to contain their infla¬ 
tion rates and on future 
currency movements. 

][ inflation rates on Japan's 

main export markets were 
stabilised or declined, its trade 
surplus problem could be 
solved “virtually overnight" 
But failure to check inflation 

Japan's trade surplus with the 
UJ5. roughly doubled in the 
first six months this year. 
The surplus with the EEC was 
stable and that with the UK 
declined. Page 6 

would mean that Japan's efforts 
would have no effect. 

Japan committed itself in 
Bonn to keep export volume in 
fiscal 197S at the same level as 
in fiscal 1977, to embark on an 
emergency programme of oil, 
aircraft and enriched uranium 


imports to double its official 
development aid in dollar term? 
over three years, and to achieve 
a 7 per cent real income growth 
rate this year. 

Mr. Fukuda said that he 
expected to have to take many 

of the most Important decisions 
needed to achieve these goals 
during the next two months. 

In particular, he would be 
studying economic trends at 
home and abroad closely during 
this period, to sec whether his 
Government should apply any 
further stimulus to its economy. 

The Japanese Prime Mmister 
stressed his personal desire to 
improve relations between his 
country and Europe 

Anglo-U.S. bid to limi t 

company currency statement 

buys farms 
for £5.5m 


By Christopher Parkes 

covering 3.543 acres of prime 
arable land were sold yesterday 
for £5.5m tn one of this year’s 
biggest and most significant land 

The buyer, Equity and Law 
Life Assurance Society, paid 
mure than £400 an acre above the 
current average price for agri¬ 
cultural land in England, it will 
farm the land through its subsi¬ 
diary company, Equity and Law 

i Farm Management). 

The acquisitions increase to 
S.500 acres the good quality 
arable land the company controls. 

On expansion plans, the com¬ 
pany said: “ We have now met 
the targets we set ourselves for 
our farming portfolio for the 
lime being." 

It commented: “ The purchase 
represents a continuation of our 
policy to move out of tenanted 
farms intu direct farming.” 

Tenanted land 

Tin* land was bought from UK 
Provident, which says it is more 
interested in tenanted land than 
in farms with vacant possession. 
When the sale by tender was 
announced by Saviils. the agents. 
List month. UK Provident said 
it wanted to take advantage of 
hieh prices for vacant possession 

It was prepared to invest 
earnings from the sale in more 
tenanted land and had arranged 
lu take over other farms. 

The deal is certain to interest 
Lord Northfield’s comm it lee. set 
up at the request of Mr. John 
Silkin. Minister of Agriculture. 
Fisheries and Food, last year, to 
examine the changes in Britain’s 
pattern uf farm ownership. 

About a fifth uf farms chang¬ 
ing hands each year are bought 
by instuutiunal investors, 
estjmates show. 

Guy institutions. overseas 
bidders and other heavily hacked 
buyers are said in have forced 
up land prices, making it loo 
expensive fur ordinary farmers 
to expand their businesses. 

Most of the land in yesterday s 
s.tle is in the Isle of Axholme 
and is ranked grade two un the 
ministry’*, scale of quality. 

Much of the soil is black peat, 
well Milled In growing carrots, 
sugar beet and other valuable 

Until recently the farms 
involved were tenanted by Mr. 
Frank Arden, reputed to have 
more lhan I’O.Oun acres of land 
in hand, and who is certainty one 
of England's biggest private 
fanners. j 

Average farmland prices in| 
England, now £1.160 an acre, 
are 15 per cent more than at 
the end of last year and 42 per 
cent higher than 12 months ago. 

Land survey Page 33 


Prime Minister, allied the UK 
with the U.S. in a successful bid 
to limit the extent and firmness 
of references to the EEC's cur¬ 
rency stabilisation proposals in 
the final communique of the 
Bonn economic summit. 

This move was intended to 
prevent a public strengthening 
of the position of France and 
Germany whose currency plan 
was picked out for further study 
at the Bremen meeting of EEC 
heads uf government earlier this 

Bolli the UK and U.S. have 
marked reservations about this 
plan and there is believed to 
have been some annoyance about 
their manoeuvring over the com¬ 
munique among other EEC par¬ 
ticipant at the Bonn summit 

In the event, the communique, 
published on Monday evening, 
merely noted the existence of the 
proposals and the promise by the 
EEC !«• keep other participants 

The next stage will become 
clear at a meeting of EEC Fin¬ 
ance Ministers next Monday 
when the UK is likely to try' to 
establish the guidelines for the 
detailed study. 

The British view remains that 
while currency stability is a 
desirable goal, the Bremen pro¬ 
posals are only one among a 
range of possible solutions. 

The full extent of the British 
manoeuvre ngs on the com¬ 
munique only became known 
yesterday as most of the seven 
heads of government dispersed 
from Bonn to implement the 
pledges made. 

There was little response in 
the foreign exchange markets 
yesterday to the results of the 
summit since the various pledges 
are for lhe long term with little 
immediate impact. 

The dollar slipped slightly 
against the Japanese Yen, fol¬ 
lowing the announcement of a 
large Japanese trade surplus in 
June, but closed near Monday 
night's levels against most other 

In London, Mr. Callaghan re¬ 
ported on the summit in a 
statement to the House of Com¬ 
mons after making no new com¬ 
mitments on behalf of the UK. 

He said that ‘practical benefits' 
would arise from the summit 
because of the specific pledges 
made by individual countries. 

He also claimed that probably 
Ibe biggest benefit of previous 
summits had been that none of 
the participating countries had 
now gone any further down the 
road to protectionism. 

On Bonn, Mr. Callaghan said 
the leaders had gone on record 
mucb more fully and accurately 
tban in previous summits on 
what they were ready to do and 
when, during particular months. 

They , had gone on the record 

much more than at Downing 
Street (in May 1977) because 
everybody realised the situation 
was “that much more serious 

The official view in London 
last night was of broad satis: 
faction with the results and a 
continuing note of self-congratu¬ 
lation that the communique had 
followed the outlines of the five 
point programme on growth, 
energy, trade, currencies and 
relations with the developing 
countries put forward in the 
spring by the Prime Minister. 

9 Adrian Dicks writes from 
Bonn: Herr Helmut Schmidt. 
West German Chancellor, per¬ 
haps anticipated some of the 
more sceptical business verdicts 
on the Bonn package when he 
publicly remarked that he would 
have liked to see more achieved 
on the trade front though the 
commitment to close the Tokyo 
round talks by December was 
an important step. 

Immediate interest here will 
now shift to the West German 
Cabinet's three-day debate on 
fiscal measures next week, for 
which several alternative 
“models” are being prepared by 
senior officials. 

One of these will presumably 
give final form to Bonn's own 
pledge to provide fresh stimulus 
of up to 1 per cent of Gross 
National Product. 

Other reactions Page 2 
Parliament Page 10 



airlin es’ 



NEW YORK. July 18. 
THE IMPACT of widely avail¬ 
able cheap air fares in the 
U.S. has helped two of the 
country’s leading carriers. 
United Airlines and Trans 
World Airlines, to achieve 
spectacular profit increases in 
the last three months. 

Both airlines attribute some 
of their earnings gains to 
improved efficiency, tighter 
control of costs and extremely 
buoyant consumer spending 
but they acknowledge that dis¬ 
count fares have triggered a 
considerable increase in tramc. 

- In the quarte rended June 
30, United Airlines enjoyed a 
24.5 per cent Increase in 
scheduled traffic, some of 
which can be attributed to a 
strike which has halted a major 
competitor. Northwest Air¬ 

Net profits during the 
quarter were $91.8m—more 
than those in the second 
quarter last year. Revenues 
were up IS per cent to S840.1m. 

The profits figures have been 
inflated, to some extent, by 
investment tax credits bat the 
magnitude of the increase 
remains the same if the credits 
are- deduced. 

United's parent company, 
UAL Inc. whose interests also 
include hotels and insurance, 
more than tripled its second 
quarter profits $30-3m‘ to 

The airline operations of 
TWA, for years one of the 
country's financially weaker 
airlines, turned in record 
second quarter pre-tax profits 
of S37.1m. 

TWA has been directly 
involved in the North Atlantic 
price cutting war but, during 
the first half of this year, in¬ 
creased its traffic on these 
routes by i per cent 
Second quarter revenues rose 
9.9 per cent to $650.3m but the 
airline's earnings were 97.6 per 
cent above last year’s second 

TWA also has hotel and 
catering interests and the 
parent company as a whole 
posted a second quarter profits 
rise of 71 per cent to $48.3ra. 

The two results augur well 
for tbe entire U.S. airline 
industry and will strengthen 
tbe impetus behind the Civil 
Aeronautics Board’s encourage¬ 
ment of cheap fares. 


Off-peak electricity tariff to be reduced 


THE ELECTRICITY industry is 
to make its first national tariff 
reduction outside Scotland since 
it was nationalised in 1947. On 
October 1 off-peak electricity 
charges are to be cut by 20 per 

Sir Francis Tombs, chairman 
of (He Electricity Council, said 
yesterday that the new house¬ 
hold tariff. to be culled 
"Economy 7" because it covers 
seven night hours, would result 
in reductions nf around 10 per 
cent in the winter quarter bills 
of those hunits using off-peak 
central healing. 

At the same time, Sir Francis 
was careful to link the announce¬ 
ment of tbe price cut to the 
nuclear power station pro¬ 
gramme, stressing its importance 
in the Future. 

Night rates were cut in Novem¬ 
ber, 1974. but the cut followed 
closely a sharp Government- 
inspired rise—by around O.Gp 
per unit—in August of that year. 
The reduction came after a 
public outcry to bring night rates 
back down acain to their cus¬ 
tomary level of half of day rates 
and the changes are regarded by 
the industry as a tariff "hiccup.” 

The present reduction is a 
genuine cut, in that night rates 
fail well below half of day rates. 

Around 2m people have night 

night storage heaters which use 
off-peak electricity, but only lin 
of these will benefit immediately 
from lhe reduction. This is 
because only half of the storage 
heaters now in use are of the 
modern variety which “ store " 
electricity over a seven-hour 

Sir Francis said that the price 
cut had . been made possible 
because of the improvement in 
the operation of the larger and 
more efficient power stations. 

“ As we- gain more experience 
with them, ways are being 
found of making them more 
flexible to meet the night loads. 
This is why it was possible some 
IS months ago to keep basic off- 
peak tariff rates unchanged and 
even to reduce some at a time 
when increases in other basic 
rates were unfortunately neces¬ 

The new tariff would offer a 
uniform night rate throughout 
England and Wales, which would 
be just over lp per kilowatt 

" One has to be very cautious 
in these uncertain days in mak¬ 
ing any predictions about future 
prices, but the underlying 
reasons which have made this 
move possible give a good assur¬ 

ance that the attractiveness of 
the new night rate should 
remain for a considerable time 
to come," he said. 

Sir Francis took care to under¬ 
line the importance of the 
nuclear contribution to future 
improvements in power station 
efficiency, a point which was 
underscored in a statement on 
the price cuts from Mr. Cyril 
Wickstead, chairman oF the 
Eastern Electricity Board. 

Both welcomed the “ increasing 
contribution" which would be 
made to tbe system as more 
nuclear power stations are com¬ 

Nuclear stations provide 
around 13 per ceot of present 
electricity requirements, ail of 
it on base load. The proportion 
rises to around 30 per cent at 
night. The general proportion 
will rise to around 20 per cent 
when the next generation of 
advanced gas-cooled reactor 

(AGR) stations come on stream 
in the early 1980s. 

The implicit linking of nuclear 
stations to a more efficient and 
relatively cheaper electricity 
supply comes at a time when 
there is fierce debate between 
the electricity industry an one 
side and the Government and 
the National Coal Board on the 
other over future coal consump¬ 
tion in UK power stations. 

The Electricity Board has made 
it clear that it wishes to increase 
its nuclear capacity at the 
expense of coaL while both Mp. 
Anthony Wedgwood-Benn, the 
Energy-Secretary and Sir Derek 
Ezra, chairman of the NCB, are 
pressing for ways to increase tbe 
coal bum. 

The Electricity Board yester¬ 
day pointed out that the 
unit costs of generating elec¬ 
tricity from a nuclear station 
were around half of those of coal- 
fired stations. 

Reardon Smith Line 
loans to he deferred 


Continued from Page 1 


SUNNY spells. Light rain in 

London, S.E.. Cent. S. England, 
Anglia, illKlauri.. 

Mainly drj, sunny spells. Max. 

SIC lfiSF». 

E„ N.E, and Cent. N. England 
Cloudy, light rain. Max. 17C 

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Drizzle, sunny spelLs. Max ISC 

N. Wales. NAY. England, Lakes, 
I. of Man 

Cloudy, light ruin. Max. 1TC 

Borders. Edinburgh, Dundee, 
Aberdeen. SAV. Scotland, Glas¬ 
gow, Cent Highlands, Argyll, 
N. Ireland. 

Rain, brighter later. Max. 16C 

Moray Firth. N.E. and N.W. 
Scotland, Orkney, Shetland 
Ram. brighter later. Max. 13- 
14C (55-57F). 

Outlook; Cooler, showers. 







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I‘—Fair. C—CIcudy. 

greater tban last year, at 6SO,000, 
it looks as if the leavers are find¬ 
ing jobs more easily than in the 
summer of 1977. 

The figures have also been 
affected by a run-down in some 
of the Government’s job crea¬ 
tion and preservation measures 
at a time when new schemes arc 
still building up. 

In July 5.000 fewer people 
were being helped by schemes 
than the previous month’s 
310.000. and officials believe that 
the number being kept off the 
registers was only 210.000. com¬ 
pared with 225.000 in June. 

Both the job creation pro¬ 
gram me and the youth employ¬ 
ment subsidies are currently 
being run down, and resources 
are being transferred to the 
youth opportunities programme, 
the job release scheme and the 
small companies employment 
schemes. By next March, 
Government job measures are 
expected to be keeping 300,000 
off the registers. 

The unadjusted unemployment 
total in the U.K.. including 
school-leavers, increased in the 
month to midJuly by 139.750 to 
1.59m. from 6.1 to 6.6 per cent 
of the workforce. The total for 
Britain rose 131.0S4 to 1.51m, 
from 5.9 to 6.5 per cent 

LOANS OF £30m outstanding to 
the Reardon Smith Line are to be 
deferred under a moratorium 
agreed yesterday between the 
Government. National West- 
minster Bank and the Danish 
Ship Finance organisation. 

Although several shipping com¬ 
panies have had their loans for 
ship purchases deferred, with 
backing from the Department of 
Industry, this is the first time that 
the Government has named a 

The Government announced a 
plan in May for extending debt 
repayment periods by three 

It was agreed that the Depart¬ 
ment of Industry would guaran¬ 
tee loans. made by the banks 
involved, but the scheme, as 
announced, applied only to com¬ 
panies owning small tramp ships. 

It was thought at the time 
that these were id more urgent 
need of assistance. 

But last month some of 
Britain’s biggest shipowners 
called for the Government to ex¬ 
tend tbe scheme to cover owners 
with debts in foreign shipyards. 

EUern.. i Lines had talked 
with its bankers about a mora¬ 
torium. but felt that a Govern¬ 
ment guarantee on. rescheduled 
debts was essential. 

More than one third of Rear¬ 
don Smith Line's £30m of loans 
outstanding was for the pur¬ 
chase of a bulk cargo vessel, tbe 
Eastern City, which was deliv- 

Cash flow bonanz: 
for British Gas 

For the second year runmirg 
British Gas Corporation baa pre¬ 
sented its statutory accounts 
using a mixture o-f historic cost 
the current cost accounting prin¬ 
ciples. The result Is that pre-tax 
profits, which would have come 
out at £564m (£362m) on the 
accounting convention followed 
by most companies, .are reprot'ed 
at tbe far less embarrassing 
level o-f only £180m. Neverthe¬ 
less this is some six times the 
figure for 1976-77. 

The difference between the 
two profit figures largely repre¬ 
sents extra depreciation, which 
British Gas considers it neces¬ 
sary to provide -in order to 
preserve its operating capability 
— though there is no revalua¬ 
tion in tbe balance sheet. And 
that is the end of the matter 
as far as the Gas Board is con¬ 
cerned. Its considered view is 
that the supplementary depre¬ 
ciation is required in full “to 
maintain the business on a 
healthy financial basis." Apply¬ 
ing a gearing adjustment would 
clearly not be compatible with 
that objective, it declares. 

But this is only half an argu¬ 
ment. When British Gas 
borrows money, whether it be 
from the Government or else¬ 
where. it-gains during a period 
of inflation from the declining 
real burden of servicing this 
debt Hence it would have been 
appropriate for British Gas to 
reduce! ts extra depredation 
charges by tbe extent to which 
these are financed by external 
debt capital, in accordance with 
the Hyde Guidelines. 

If British Gas wishes to con¬ 
centrate on entity trading 
profits—on the lines of the 
national income accounts—this 
might make sense given its odd 
capital structure. *But the con¬ 
cept of pre-tax profits has no 
place here, for the significant 
profits figure should be arrived 
at before all finandng costs, 
including interest. 

British Gas is further apply¬ 
ing its mixed-up reasoning, by 
setting itself a provisional finan¬ 
cial objective of earnii^ 4 per 
cent return on sales, net of cur¬ 
rent cost depreciation and 
interest costs. In this way it 
plans to double 'its retained 
reserves (from £313m) over the 
next three years to a level 
where they will represent-20 per 
ceot of net assets. What these 
reserves are required for is not 
at all clear. No doubt the Cor¬ 
poration is happy to be generat- 

a 35 per cent Eastwood: 3 5 

Index fell 6 .9 to 472.4 

ment can hardly count for m ^ ft 



in practice unless Gariiy • \ 
matches Imps’' offer;,- ^ 
the price Of £3Sm being puj- 
Eastwood, the exit.: p/e 
notioaally fully . taxed I8T5ii> £ 
profits works out at, a-M3 £"/ 
16.6, but only 4.4 on the SaP 1 
of ED 19 earnings for 1976 
a much better year.- Take yi 
pick. .* 

'it j: __ Traded options 

200 y FI Volume in tbe London 'trat ■ 

*' KttM ^ - -• options market jumped up; ’ 

• V < L'tlr- 7, ' 1.249 contracts yesterday — 

JII:.It: i m if. f-II new record-by a wide mars- 
is®?,® Tty! .,7#? , . np . Fart nf the explanation is t. • 

6V70 . Ti g— 7JA ‘ KtB — tra ders were adjusting tft 

_ _ books ahead of the : esptry tor 

ing cash at a rate at which it 0 f the July series. But this 
could pay off all or its £l-45bn opt all the. story; for the Jr 
debt within three years. But it series otriy accounted for 
is all very expensive for today’s quarter of yesterday's volur 
consumer. The main feature of liie day iT 

the appearance of a very lu 

Imperial/Eastwood covered writer in Land Seen:- 
Imperial Group has decided *pre were nol«@ t#- ,: 
to have a try for J. B. Eastwood. se0 . «•■«*** * “• - . 

Although such a bid has been senes. . 
on the cards for many years it " The verdict on. the mad? 
has never been certain that Sir after its first three monH-i^^ 7 
John Eastwood would be a trading: efficient, and dnU. TT*' ' 
genuine seller, and moreover market is dominated by. prof 
any merger has always seemed stonals working from more.; 
likely to lead traight to tbe less, -the same theoretic: 
Monopolies Commission — for models, and there, have b? 
the group's combined share of few profitable anomalies to t 
the broiler chicken market is a plodt. Yet its supporters arg- 
little over a third. But the that London needed a qui 

agreement to terms of 132p start given its limited facfltCQ 
cash from the U-S. group Cargill The market is now ready to‘» 
meant that Eastwood was in- further stocks to the deaiS 
deed up for sale—at-.a price List, and is certainly, a great de 
which Imps has now topped by nearer the break-even, poi 
28p per share. That still leaves than Amsterdam. . 
the problem of the Commission. Meanwhile there is no evi 
but Imps has evidently decided so fir of the tail waggfcr.'Jt 
it is not-going to see Eastwood ^ dog Taken as a who! 
disappear out of reach without prtc ^. ^ underlyii 

putting up a fight. securities do not seem to ha> 

To begin with Imperial is been affected much by „ 
arguing grandly that the merger o£ expiry dal 

will be of “ major benefit to the 

UK economy” and its short . . j- * j j 

statement yesterday managed Snipping dividends 
to cram in three allusions to - If they did not realise .) 
exports. If this before, sharehodders in shippid-'l.." 

fails and the btd gets referred camfxail j es are going ‘to have t 
to the Monopolies Commission ^ ^ divMdends if & 

*** L"'“^2 tats and tbe UK Gtn-envmen 

too. Even if eventually Imps terda ^v, Tpn ^h« 

is blocked and Cargill cleared announced that it had reachei 
the British group will have kept ** agreement an principle ti . 
a powerful U.S. competitor out resehe du i Lmg . In return « m 
for a few more months. agreed to pay only a token divi 

A minor complication is that dead up to November 1979. : - 

ered from Danish shipbuilders 
in July 1976. Finance was pro¬ 
vided by tbe Danizli Ship Finance 

One condition of the mora¬ 
torium is that Reardon Smith' 
will pay only a token dividend 1 
during the period of tbe defer¬ 
ment. The company has also 

undertaken to adjust the security 

arrangements for'the loans, but 
no de tails of this were given last 

The balance of £19m was pro¬ 
vided by National Westminster 
and the Department of Industry 
under its home shipyard mort¬ 
gage scheme. 

The announcement yesterday 
by Hambros Back, which has 
acted as financial advisors to 
Reardon Smith Line, said that 
agreement bad been reached in 
principle, subject to contract, to 
a deferment of repayments of 
principal with the three lenders 
of all loans secured on the com¬ 
pany's fleet 

All instalments of principal 
due on on before November 24, 
1979, would be deferred. 

They would now fall due on 
the date of the final instalment 
of the individual loan under it$ 
existing repayment schedule or 
on November 24 next year, 
whichever is the later. 

Interest would be paid on ail 
loans in the normal way. 

Further capital commitments 
will also be restricted by the 

Last year, Armitage 
Shanks sold sanitary ware 
and fittings in 50 countries 
round the world. This global 
activity is a far cry from the 
single kiln in a remote 
Staffordshire village where we 
had our origin over a century and 
a half ago. 

Armitage Shanks have 
established a worldwide 
reputation^ not only for luxury 
bathroom suites for the home, 
but for a whole range of quality 
fixtures and fittings for hospitals* 
hotels, commercial premises and 
public buildings of all lands, 

A continuous programme 
of research and devdopment A 
keeps Armitage Shanks a 3 


Extracts from the 

Chairman’s Statement 

Although trariing TP milts in trie • 
first quarter of the year effused 
rfmc!CTTi 3 Tnnrleaf. ran rir tirmR impro ved 
after the summer of 1977. Whilst the 
volnme of sales became more buoyant, 
Mr. Kennedy Campbell said that 
higher marg ins were notable to be. 
obtained due to the forces of - 1 

competmoiiin tie market and die 
• limits imposed by price legislation in the 
ILK. The result was that trading profit 
increased only from 3^2.69 miliion-to 
£2.88 million on turnover mcreased from 
£36.1 million to £42.3 mfllibm lhjrmg ths 
year some ^oopDo had been written off 
trading profits on items of an exceptional, 

The Board re c o mmended a total 
dividend of 4.30^ a ppr ori matriy the same 
as last year. 

Mr. Kennedy Campbell concluded: 
particularly on the marnifecturing side, 
have been directed towards onr traditional 
marketing strengthsandlfeel . 
confident tfaatthispoEfy of 
• concentration^will bring its reward? 
k • in the nest twelve months.” 

armitage shanks 

Better Bathrooms 

Head Office: Armifage Shanks Group Limited, Armitage, Staffordshire. 

Reasitrrt at rho Post Office. Pruned bj sl Clement's Press for - sad MbDeOed. 
by Ule .Financial times LtxL, Bracken Hunse. Cannon Street. London. BC4P'4BT.v. 

Q The Pinanaal Tuan Ltd;,- i87S-