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S V -r- - 


No. 27.595 

Tuesdav June 27 1978 

JyPjJf UP <>^P ;| *g$* 


continental selling P.,r«. ..... Lades goid-piated range from around £29.00-£59.0Q 


7% sr 3 




United considers 

Yemen fears 

interest £ib n order for 


hit Gilts, 

European Airbus 


• GILTS relic ct i:d Interest rati* 
fears wiih losses uf|as much as 
i in shoris and ! it longs. Th<" 
(Government Secures Index, 





NEW YORK. June 26. 

r.*\ Mitt J 

•- - ; ^President Salem Rahai All nr « 1 'V^i T* 

South Yemen has been cxeci. ,?h <,0 "‘ rnmeat Secures Index 
S-.} ffter being overthrown hy other (l0r~ { i 

- - ;;}.$$ members of the Marxist l f J 

. O ^National Front Party. the stale- V 4—1 

i.- -frail Aden Radio reported last -TV U 

■ • -l^ night. 1- -x- -A 

’ The Front's Central Cnmnmtep 75— — — - 

... had accused Mr. Rubai Ali of - " r * r _ 

-t* L ' attempting to overthrow ii and of - \L _ 

... ordering the bombing of the . |f 

• '. , presidential palace while the ’ Mrg " 

•*J.» committee was in session. Mr. " r'V-jj" 

' • C,.> ,vAli Nasser Mohammed has been — 1 *1 -IV 

. £ .-appointed President and will I V 1 

.• . K continue as Prime Minister. r ir'T' n J - 

't* Aden was racked bv heaw - £ I. UOVerrmientj __ 

• ^-fighting only 24 hour* after ihe - .Securities Index _ 

- • *';'75ouUi Yemen regime denied in- cr l I I I VI |1978 

: V-v Volvement in the parcel bomb j AN ‘ ‘ ftP i 

^assassination last Saturday of L N r{8 MflB APtfr- Mffif_juw 

S" aShmi nf 0..73 to BS.S8. Attempts to 
. y North Yemen. Pa R e 3 ra „ y lacked substance until 

,alc afternoon, when Ihe shorts 
- fenlo wnaimg R?^n attracted bear covering. 

-.^Panama withdrew its plan for a • EOU1TIE* fniinfeed the 
*•- :• .^Ifryear ban on commercial ’ H Pr n in r L t!Tft qn 
. • • • .^ whaling . at the start of the Inter- J"™ J n G ,lts - -Tt-Zy *®’ 
s.riiatlona] Whaling Commission's f^are tndex fell 3.3 to-453.0, tts 
IV. meeting in London yesterday. It «west since April 17. r 
" '-5 "strongly denied that it had been m ctvri ivr 

" '4r- under pressure from Japan and ® STERLING traded m a very 
‘ £5m - sugar contract had narrow riU, S e ' against the dollar 

• .- ^Vvbeen in the balance. to cl®*? at $1.8495 for g -rise of 

, V.* The Panamanian Government 5 points. Its trade-weighted 

-'v^'does not act under pressure frnm index was fil.3 (61.4). The 

. . . ’'if^asybodyr said Sr. Royer dollar’s average depreciation 
Uecerega, the Panamanian com- ^-35 unchanged at 6.8 Tier cent. 

l ™ baSSad0r “ the The yen soared in T.l®, after 

. .^ .VK. . Bark Page th e Japanese ^Amet’s 

• i-:x Economic Council decided not; 
IP© BOS Bill. lo introduce new measures to | 

Left-wing groups and a cut thp for ^S n tradc sn^his.; 
' 'S^Bretpp separatist organisation The dollar reached *Y204.5i 
claimed responsibility for a before Bank of Japan intervcD- 
’ ■■■•“ biwnb attack which severely tion. Page 3 • •* 

. izzjMlhased a picture gallery m a , , Z 

-- ^recenfly restored winy of © (JOLI> fell SI Ip .S185| In 
' f . ^'^3^^dJles Palace, opened by <iuiet trading. The New York 
" rfePtfe^aedt Giscard d'Estaing six Comex June setlemcnt price fell 
. ~. - ago. Damage to the 70 points to $185.10. ! 

.. - ^ -alone is put at £600,000. 1 

MPs condemn 



rally lacked substance until 
late afternoon, when the shorts 
attracted bear covering. . 

• EQUITIES followed the 

[United Airlines, the largest U.S. commercial carrier, is believed to be!* 

considering placing orders worth between $1.5bn and $2bn (£815m-£l.lbn) ' Mr . Callaghan and PreS idem caru-r: united in condemning 
i or the proposed B10 version of Airbus Industrie's A300 wide-bodied jet. mas.sacre 

iJniied’s dirct-iors jre expeiiod ha> noi taken :< dccismn .''bum a third nf this amuum ' 

1,1 make a decision on August 24. to produce the aircraft, which from external financing, ihe type •*" 

The airline has narrowed ilic would be a downsized version of of credit offered to United could; jm /■ ■ 

* boi ip tn the BID nr a 2U0- the R4. be crucial if there is not niuchl «/ | | • | B j | ■ ■ A.JI | |1 W R 

!.:is>enyc-r. medium range jcl However, an order from United 10 choose bclv.**c n the Airbus; I y S M 3 V\l fll VflL BI1B 

d I n*-'* 1 U.S. manufacturer would put this derision be\ond an£ l Boeing designs. ; 

Buemy plans to develop. question ’ Mr Richard Ferris, t. nitort ■ 

However, as negotiations move i> ; s „ n df-rmood that the air pro>iient ami chief executive ■ 

lf ;. if a t t : l,l » a5C - lh ® European air- line has bL . en negotiating for 25 hinltfd *1 h fl * ,“ n nd J,f I m O CC O A1<A 

era ft is bebeved to be nosing B J0s for debverv by 19S2 with ?uaraoteed financing on United s f B I ^ 1 * 1^ 

i k ,k an 0P li * n on another 4n lo be .5»ve Airbus the) JIAJ.CUOC1. V'i %✓ 

,,. Th ?* 1 15 because the BIO could dc |ivercd after 19S2 &l (he raLo ed " e over Boemc. j 

O'- available earlier— -mid-1 981. 0 f about one a month United This is a new and a distasteful 

Jale l9S2_or early bas indicaied that its total re- experience for Boeing and the BY BRIDGET BLOOM, AFRICA CORRESPONDENT 

Ka.J for the Boeing /67 and q U j rem ent cnuld be for 100 air- other U.S. manufacturers who] 

iL bUS ..i ‘ c™ 1,1 - havc befi0 flC:< ' ut Jn - V =P‘»ous THE GOVERNMENT’S Rhodesia some progress towards our 

^ f ^ competition from Europe for policy— and in particular its objective of round table talks” 

.... .J? , on IJ|nf more than a decade. lack of encouragement for the which were now more, urgent 

nmv lu^rpfu.tant to^mt.* * One of ihe mo.-i significant internal settlement— came under than ever. The talks must, he 

The Airbus IndSirie^nsor- tiled's fleet-whuh is ten aspects of Easterns order was [heavy fire m the Commons yes- said, involve the Patriotic Front 

lium 'is lareelv a -Frani-o-Wesr years old on average — is mature that it broke through a prejudice ferday as -TPs of all parbes con- as well as the internal settlement 

German uSdertlk^e Sth winS in comparison with some nf its ayainst European aircraft which ac f5 ,ead l rs - 

being built in the UK. compcbtors. The aircraft it is stemmed from U.S. airlines’ dis- missionaries in Labour members suggested 

Althou°h increasinelv confi- seeking will replace 16 older appointing ope in tin a experience Rhodesia. __ that guernllasowing allegiance 

ucs 1,1 st Europea " jfu ' i " riDs ““ ftjss, 

order is home and dry. Pres- As it has moved towards a Another important factor is li^erT^ere^united ol’eS ^tdd^harhe 6 ' - di? 

sures on the airline to stay loyal decision, a rival design from that a number nf reputable t c 'Seil n f StMr Calls'. I^nw'' d whn ^-.d^been 
t» domestic manufacturers are McDonnell Douglas has been aviation industry observers , described 8 u the barbarh* re- nonsible 
intense, although the path lo rejected in favour of the Airbus returned Iasi month from a visit ( ^ ' va „ erv .. 0 f t u" e massacre * u e «h r fniinu- 

01 dering foreign aircraft was or the Boeing. 10 the Airhu* plant a i Toulouse | S- ^ a - eri he massdcre - He urged Members to follow 

substantially cleared in April United's priority is u> acquire impressed bj -‘.hat they had seen. MPs at Westminster were the example of the 

when Eastern Airlines placed a aircraft offering greater fuel an d heard. , . n tl ! ei J condemnation of Church, which had decided to 

s77Rm order for 23 A300 B4 econonn than the present yenera- Mr. Edmund Greenslet, of lalimgs of 12 white people stay 11 1 Wiodi 

Airbuses. tion of 'jets and less noise. Both Merrill Lynch, for example. f r? m . a « E1,n J. Pentecostal forward, not backwards and to 

Eastern also look an option on have been strong selling poinis believes that in,.- Bio will limit j mtssion “» " C ;?7 wo ^ k f ® r P e ®«»- 

25 B10s and. as veL the Airbus for the A300 B4! Bui. since it the polenuai of Boeinv's 767 pro- «*e Rhodesian bolder witn Reports from Salisbury sug- 

PH1LIP MORRIS announced 
today it is buying the foreign 
cigarette business of Liggett 
Group, the sixth largest U.S. 
cigarette maker, for S108m. 

The move will further 
expand Philip Morris' share 
of the world cigarette markets. 
It will unite in one stable such 
well-known brands as Philip 
1 Morris’ Marlboro and Liggett’s 
-Chesterfield in the non-U.S. 
.cigarette market and raise Philip 
Morris' overseas sales by about 
15hn units a year. 

The transaction will be in two 
parts. Philip Morris Incor- 
porated, the parent company, will 
pay S63m for Liggett's foreign 
inventories, receivables and 
other assets, excluding Liggett’s 
Brazilian tobacco leaf business 
and the smoking and chewing 
tobacco business of Liggett's sub- 
sidiary, Pinkerton Tobacco. 

The core of the transaction, 
however, will be made by Philip 
Morris's Swiss subsidiary, 
Fabriques dc Tabac Reunies, 
which will pay S45m for the 
right to ali existing Liggett 
cigarette trade-marks outside the 
U.S. as well as all related rights, 
1 patents and technical data. 


S. Africa seeks pledge 
on U.S. nuclear nacka 

«•'. .worst mutilation was loan © WALL STREET fell 10.74 to 

- -.-.^1812 .' painting bv the French 812.28 on Interest rate concern. 
- "Debret depicting .Napoleon 

•-■“fiSSftJ* 6 1«»r" t hl World airlines 

TjwbFfci- was insured. PHge 2 ^-1 

;vf^v 8 * . earn xl.obn * 

" ^H©fl0Opter crash ^ AIRLINES throughout the 

: . .Z '&E&titeen people were feared world earned an operating profit 

‘ I? .dead" after a Norwegian heii- of £l.6bn last year. Back P*S®- 
- '^copter carrying workers to the British Airways and British 
. - ."-%Stalfjord A offshore installation Caledonian Airways will bgh to 
• r-C?§shed in the North Sea. be the designated UK airline 
' ■ -•’F’THirteen bodies have been f,n l *'C new London-Dallas^Fort 

■ :.:pg!3ri.- Three pLen%," Worth route .t . he.rlrg tvhich 
■ g-ifertYilled when an Air Canada st^rib tomorrow. Page 6 

crashed on takeoff at ^ EMPLOYMENT Appeals 
In India. 41 people were Tribuna i ru led a worker who was 
: when a bus collided with espe ]ied from his trade union had 

— - ^3giE goods train ai Bareilly. 150 niJ f e( j re5s against his employers 
■miBi25®tSi5les.- west of Delhi. f nr heine dismissed from a 

25 BlOs and. as vet. the Airbus for the A300 B4. But. since it the potential «( Boemv s <87 pro- «« onuuram.i wiun «”u Keports irorn baiishury sug- 
consortitiin. which is dominated plans to >pend «S»bn bv 1990 on gramme. Mozambique. S e S t that the murders have 

hv France and West Germanv. new jets and will have to find Callaghan air talks Page 4 Dr. David Owen, the Foreign further deepened the sense of 

Secretary, described the murders gioom with which many whites 

as an “appalling tragedy” and are now viewing the internal 

S A if* • 1 "HI Mr. John Davies. Conservative settlement. 

/%. TflOO CIAAKTC 1 Vfc a iTVA © tTK/Th Shadow Foreign Secretary, It is thought that the Vumba 

■h f~\> I 1 BIB “ 11 ” Xi spoke of “this ultimate murders could further exacer- 

• bestiality.” bate race reiations, Tor while 

However, it is clear that the many whites are bitter, many 
H - T) murders have again highlighted Africans, including Bishop Muzo- 

W PTrrfTk the political divisions in Parlia- rewa. one of the Government, 

. 1 ^. I I B 4% 5 J 1 ment over the Govermnent’s leaders, have criticised the 

• • AHAwAVM-A Rhodesian poiicv. Mr. Davies, widespread publicity given to 

. .. . adopting a far milder tone than the killings. 

MUOAYID FISHLOCK. SCIENCE EDITOR some other Conservatives, While not condoning the tnur-, 

: ■ 3V..CINV.L ^ accused the Government of ders, Africans complain that the, 

\ , , ^ ^ . . 4 . TTe . ... , encouraging those who sought much larger number ul blacks' 

SOUTH AFRICA has asked the African Government may be the U.S. scientists can do no p Dwer -by the bayonet, the killed, often in brutal circum- 
U.-S. • Government for fim forced into an accelerated pro- better than to propose a fuel of c j ufa the gun” by its policy slances, as a result of the war 

guarantees for'-, a controversial gramme of developing its own 3540 per cent enrichment. cn ]{j shouldering the has mostly gone unyecorded. 

package of nuclear fuel services, uranium enrichment capacity This disadvantage may be used Rhodesian internal settlement. Jurek Martin writes rrom 
in exchange for signing the The reward of success, how by the South Africans to advance! - however firmly Washington: President Carter 

nuclear Non-proliferation Treaty, ever, could be that othermueleai their case for two other partsl ~ * h Government’* and Mr. Callaghan agreed that 

sensitive technology" for its new nations such as India. Pakistan, of the package, namely giiaran-j^ pr rondp , nn in» nor thF massacre made it all the 

The U.S. Administration's Brazil and Argentina are per- teed supplies for enrichment foi 0 th internal settle- niore imperaUve that everv 

latest proposals were taken to suaded to sign ihe treaty. the Koeberg power reactors, and ; 1 su, =' " Rhodesian national group be 

Pretoria recently by Mr. Gerard The package is diplomatically technical assistance from over-!™* , involved in the transition to 

Smith, a senior State Department most sensitive in the area ol seas fur South Africa’s own] , 1 ™- ~miih majority rule, 

official. fuel for the small (20 MW of uranium enrichment plant. ^* ent ' JJ, 1 !. x MiSsSil* It is understood that the Prime 

The package stipulated by the heati Safari research reactor, for The commercial enrichment ;»« J bL? leaded had Minister emphuiwd that the 

South Africans includes the which the I fncluded 66 certain elements nf incident demonstrated that ihe 


According to Philip Morris, the 
Swiss acquisition will be financed 
by funds from the Swiss sub- 
sidiary. while the purchase by 
the parent company will be 
funded from operating or genera] 

Philip Morris, which has 
emerged as one of the most 
aggressive companies in the U.S. 
tobacco and drinks business, 
holding second place In the 
American cigarette market said 
today that the acquisition was 
part of its plan to expand its 
worldwide cigarette operations. 

The company already derives 
abuut 25 per cent of its sales 
revenues from its international 

According to industry esti- 
mates, it exports about 30bn 
cigarettes a year and manufac- 
tures another 157bn in its 
foreign subsidiaries. 

Mr. Raymond Mulligan, presi- 
dent of Liggett, said that the 
company had decided to sell its 
foreign cigarette business because 
this represented the most 
effective redeployment of its 
assets under present circum- 

Liggett’s principal foreign- 
selling brands arc Chesterfield 
and L and M. In 1977 Liggett 
produced nearly 10bn cigarettes 
abroad and exported a further 

auuwi rtiiu^us iui'uuh ..... ij --hided certain elements nf wciaeni demonstrated urn me 

enrichment of uranium for its were authorised at the end of be South Africa s only possible [ a neloAm erica n plan for internal settlement was not end- *_!?J 

first Two nuclear power reactors , _ means ,,r fusing Kocberg j Rh0( j' ia but insisted that there > n S the violence in Rhodesia 

— under construction nejr Cape ThJS is normally of 93 per unless the U S. Government fal- and that the Aneln-American 

file's- west of Delhi. for being dismissed from a 

r’V ; ' factory where a closed shop 

^Hospit a l all-clear existed — even though the expul- 
V- g- .r^ - . . .. ^ sion was later held to he invalid. 

^Hospital electncians caUed off i(l 

Aherr week-long industrial action . 

J ifter winning Government accept- 9 DURABLE GOODS retailers 
Si .1 1 j 7-j nf 1 hr- increase in 

S winning Go^rnment accept- 9 DURABLE GOODS retailers 
■SBce that their pay should he did best out of the 

rfelbted.lo parity with the pri- retail sales in ApriL according to 

rtafe sector. Back Page 

Poll stal ©mate 

Business Statistics Office figures. 
Page 7. The latest Financial 
Times survey nf consumer con- 
fidence gave a much more gloomy 

ST.Tr \ ■ JIUCII^S » ----- - r 

|?Icielaad’s General Election ended re su!t than at the Ome 01 uie 
I’ltf deadlock, with the Left gain- April Budget. Page 9- U.S. corh 
r itig seats but failing to secure a SU niers are pessimistic aooui 
RTnajority?. The Progressives, inflation. Page 4 
F-sectimr party in the ruling coaii- nFI1TSCHE bp's £ 2t0m deal 
fei^on, said they would stay out of •' E?erey Group is 

— under construction near Cape rhis is nonnally of 93 per unless Hie U i. Government ful- “Vtttemcnl nvolvinj and that the Anglo-American 

Town - further supplies of cenr cnrichniem-that is. of c fills ihe order -it has already sl “fte dispute plan remained the best available 

uranium fuel for its Safari level associated with nuclear accepted from the Souto African ! au parue “ 1 ie u»»j.u . solution 

research reactor, and an assur- explosives. Electricity Supply Board. | A joint Anglo-U.S. team was r*ntin««i nn r 9P i 

ance of what it calls "non- The U.S. Department cf South Africa has frequently ; now in Salisbury. Dr. Owen said. ‘“ a 00 DacK r “ e,e 

sensitive " technology for its new Energy has been investigating promised that this enrichment He believed we were “making Parliament, Page 10 

uranium enrichment plant at ways in which the relatively few plant, when built, will be open 1 ' “ 

VaJindaba. research reactors which require to international inspection. I 

lo return, the South African these very high levels of enrich- However, it has recently 

Government has indicated its ment might be adapted to use indicated in the U.S. th3t it wants 

willingness either to sign the lower levels, the technology to he kept secret, 

treaty or to accept “full-scope The aim is that such reactors riling as an example of the 
safeguards" — which from the should use fuel no more highlj -pecia! treatment it expects the 
standpoint of U.S. non-prolifera- enriched than 20 per cent, at current discussions between 
tiori policy may be just as which level, it is judged, any Urenco — the Anglo-Gcnnan- 
aceeptahle. ' weapon fashioned from the fuel Dutch enrichment company — and 

For the U.S. the big risk of would be so cumbersome as to ihe Iniemaiional Nuclear Energy 
failure to find an acceptable be discountable. Agency about the preservation 

compromise is that the South In the case of Safari, however, of commercial secrecy. 

£ in New York 

— I June 26 ! T region* 

fr-pnt S1.R*7 cM34Sb S1.RW>^*73 

1 mi-nlh , 0.41-0.3* -lit P.Wa>. 4£ ,li» 

Mn-mLhB ' L3S-1.33 >11* 1.40. UC His 

12 mnntbs . 5.10-4.90 His 6.154.95 Hi« 

P faon, said they would stay ° U _J ■ ," y FR . Ener"' - Group is 
4c; Government but Mr. Geir with ' £BA Ener -^ est 

ihp Prime being examined oy ‘ „ n 

Building society merger go-ahead 

«* W™ rerman 6 cartel office! SVB 

? Minister,’, has not yet indicated German cartel o 


p<whe b .he will resign. Page — 
' Editorial Comment, Page 16 

mt*s off 

according to me Gonaon- 

^ traihip taken (o a while-only g aset j ’ consulianis Economic 
^’aamieshurs hospital at ine Mode | s page 7 

^reebend. was ordered jo ue ELTON, who 

(r.SernKhPd : before admission. • MR- JOHN *■ r Hi ,, 

EfMefcend. was ordered to oe inWT w ELTON, who 

Kb«F . before ^dmisaon. # MR- nf Hin 

:* v f^hBcanse^ he. was so dirty that became chief ^etut of the 
, ; ;M-aw)^rouJd teJJ whether he was Sa muel re &e from 

. .i&Mitettr black. He turned nut to year has 

and' "was allowed in. full tune exei-uuve 

■- ; ' Knoll 

full time executive duties- 


9 EATON.of the U S. is making 

bid for Cutler-Hammer 

German SuernHas, “^'^stronic controls company 

Jun J }th 2 M °the 32 

- charged wjth holding^ 

^l.ajtehipfetJ f murder of two sw v*~ 

J ' tn he — main 

It acquwu - -- r 

two weeks ago. ra 0 e 

CONTROVERSIAL proposals for 
the biggest-ever building society 
merger were yesterday approved 
by ' the Chief Registrar of 
Friendly Societies. The merger 
is . now expected to go ahead 
next' week. 

• Blit the Registrars appro\al 
of . the plans — to merge the 
Hastings and Thanet Building 
Society with the Anglia Build 
ihg Society — was accompanied by 
sharp criticism of the way one 
of . the .societies involved had 
responded to shareholders’ 
requests for more information. 

The merger, which will create 
the seventh largest building 
society in the UK, with assets 
of', about £1.2bn. had been 

opposed by a group of Hastings 
and Thanet shareholders led by 
Mr. Paul Twyman. a Kent civil 
servant. Ar a meeting before 
the Registrar last week, they 
attempted to kill the merger 
plans and claimed that members 
uf the two societies would not 
benefit from the move. 

Id a judgment which took 
nearly an hour to deliver. Mr. 
Keith Grading, the Registrar, 
said that after full examination 
of the merits and disadvantages 
of a merger he believed a trans- 
fer of engagements should be 
confirmed on a wide number of 

At the same time. Mr. Brading 
said some nf the explanatory 

documents sent out by the 
Ha--iirg« 3nd Thanet to share- 
holders " tell short uf the 
standard which is appropriate 
3fid normal.” 

The Registrar believed some 
“mure re j-. finable explanations''* 
could have been given in reply 
lo -•nne of Mr. Twynian's 
requests fur additional informa- 
tion i-n (lie merger and said be 
gaineu the impression Lhat " Mr. 
Twj nun was for some reason! 
assuni-d :<i the outsei to be a 
meml.x r w ho could only cause 
TrouIiU and obstruction. I 
believe that assumption and the 
society - reaction were both 

BSSBTjS:“cl.S»d'"«> i ,^ • TRIDENT TV increa^d ^e- 

SftSSS"*. « S5f‘b!Sf-f^ «. 31 - 

J-* 7 cIttee-s .hold S 

^nee-schools cut back an swim • pre-tax proBtsJo ti 



-CJ1 uni ru CTUtm. A LA » * - ■ ... ri sm 

^nee-schools cut back op swim J5 crease d pre-tax profit-' 1 ®^ 31. 

. Wessons, the R 7*iiJSJS (£ 1 22 m) in the year to Marcn o 

Prevention of Aceide ^ 28 

f-.Wkrfaed’.'. mm 

'European news 

Overseas news 

American news 

World trade news .... 
Home news — general 
— labour - 

— Parliament ... 10 

mum mm® 

Technical page 

Management page .... 

Arts page 

Leader page 

U.K. Companies 






.... 28-31 

Inil. Companies 32-34 

Euromarkets 32-33 

IVorlrf markets 36 

Money ami Exchanges 35 

Farming, raw materials ... 3T 

U.K. stork market 38 

b: ; V RISES 

Eifivehud dose -. *SS 

‘"SSann G75 

S-nenwick -- - 



neto-.Wd. Devs. 

H;5outh ££ 

|-;-ynnza>f Riotinro ... -- 

feSdtra-BrpkPti Hift —■ }|U 
Pife^hern ,M»nin« - Vik 


?■ ' FALLS 


ExcheQ- 12pc 13-1" 

Beech am 

Bon ater _■■■■ 

Common Bros. — 



IC Gos_ ,• 


Minet Hldgs 

Mo thereat 

Peari .Assurance — ■ 
sUjthcby PB 
Slock Conversion 
Thorn Elect. ••• 
Union Discount 


Willis Faber 
Siebens (Uiv» — • . 
RTK •- 

.112! - l 
. 6.™ - l 
. 191 - a 

■ 122 " 

. 262 - 4 

. 338 - JO 
. 1S3 - 

. 220 - * 

; 22S - i° 

: sob 1 i n 
20 “ - 
' 24“ “ 5 

SIS - 
ojfi - ■> 

Hint of progress in the arms 

. eat talks 16 

Society Today: Paying for 

better pension deal 27 

Why cutting overtime is no 
way to create jobs 13 


Film and Video: Cassette 

discount battle M 

Viennese beer barons leatc 

the stage 33 

Chipboard market: Imports 
squeeze UK mills 37 

The business refresher 
course to Bahrain . 

Trudeau determined to 

make changes 4 

Porliical: Upjohn deal 

bposi> chemicals 4 


British exports 17-26 


Appointments Attvt*. 

Bttsfneu Opptj 


Entarxalnment Guide 

EunKoptims . 

- FT-Actowie* Indices 

Home Contracts 



Lombard - ■ 

Men and Mnucn 
Saleroom . 

Share Information 
Today's Events 

TV and Radio 

Unit Trusts . . . . 


World Value of t ... 

B Naz. Dell' Agrlea. V 

Banco dl Roma 
John Bright 
CombcR Group 
Dawson I ml. 

East Surrey Wafer 
House of Leroce 
Land Sees. Invest. . 
Motal Bax .. 

Ports. Sun'Umd News 
Rrad'cw Inti. 

Union Stocl Cpn. .. 
Wiliam Pickles 
Base Lending Rates 

Concorde’s regular Wednesday and Friday 
flights to Bahrain take just 4 hours, non-stop. Other 
Concorde flights whisk you to Washington in 3 hours 
50 minutes, and New York in 34. 

I .ess rime in the air means much -Dl llloU 

For latest Shore Judex 'phone M-246 SK* 

Less time in the air means much lllol* 

less stress for you. And isn’t that the jUT WHV S 
best business refresher course of all? ^ ^ 

&r-' :v 


W. German Minister 

shifts focus 
away from tax cuts 


BONN. June 26. 

m i A iit 


. ’- ; :>‘^SAU. Guinea 

AW FURTHER West German has been a particular aim of 
Government effort to boost the Herr ..lotthoefer since he took 
economy must be in the form up his post earlier this year. It 
of a package. Of which tax cuts is also noted that improved 
would be only one part, accord- family allowances would fit in 
inc to the Finance Minister. Herr well '.nth J9«9 as a UN^desig- 
Hans Matthoefer. natC{ * F 6 ® 1- of the child. 

" , Asked whether it was correct 

Other elements must include 

Eancs: Angola pact 

steps to promote public invost- 

that he was thinking in terms, 
of a programme of economic i 

ment and “social measures-- sl j CU || 3 ti on worth DM12bn in 

mirh as im Droved family allow- . . c i 

such as improved family allow 
ances. Herr Matthoefer said in 
an interview with the magazine 
Der Spiegel published today. 

Bv bis comments Herr 

all. Herr Matthoefer agreed that 1 
was n sura which could be I 
financed, albeit with great diffi- 
culty. ' ! 

This figure is also equivalent 

Matthoefer bas sought to shift tQ 3i5nut ' x pcr cent of West * 
the focus away from tax cuts Gennan CNP— the amount bjri 
as the prime contribution to the United States has! 

economic stimulation which urging Bonn to apply an. 

Bonn may promise its partners ec nnorr>ic boost. Such an econo- • 
at the world economic summit mll . p r n-rammc would not rule; 
here next month. out possibility or a major! 

Tax cuts aod reform have lax r( .fnrni later— for which the . 
come particularly to the fore ppp - n j S been pressing. Indeed. 1 
because the liberal Free Demo- part n f the programme could I 
crots (FDPl — the junior partner serve as the prelude to such a 
in the Bonn coalition Govern- reform. 

ment — have seen this as a useful There have been fears that 1 
issue to stress in public after ^ Government's own subslan- i 
recent serious provincial elec- t } a ] borrowing may force upj 
tion setbacks. in ter"; r rates — and thus help , 

Herr Matthoefer. a member of dcores? that economi.; upswing ] 
the senior coalition party, the in the private sector which the! 
Social Democrats (SPDi. has Government claims that it wishes 
sought to restore a balance. He to foster. But in an interview f 
will also be responsible for find- today the Bundesbank Vice-* 
ing the means of financing what- President. Herr Karl Otto Poehl. | 
ever package is agreed. indicated that he did not think I 

A final decision is likely after this was a serious danger. Hej 
three-day Governmental discus- noted that the decisive reason 
sions at the end of July, in the for the weariness of the bond 
wake of the economic summit market and the small rise in 
and when data era the economy's interest rates lay in the big 
performance in the second foreign curency outflows since 
quarter is available. March— a return to more nor- 

More investment to promote rnal conditions after the big 
research and technology and inflow nf dollars at the start of 
create new. skilled opportunities the year. 

The face-to-face meeting ntittee to deal in the future ^f*h P gHa tiw> 
between President Ramalho 
Eancs nf Portugal jnd President 
Acoslinho Nero of Angola bas 
achieved much more limn either 
side initially hoped f*>r. 

At the start of liv 1 summit . — . - - - 

Angolan officials keiv were nationalised diamond mine, ana prisoners affected rail under .' 

sceptical that an- more the resolution of pre-independ- legal jurisdiction o£ ..Porta ... 

then preliminaries '.on Id he ence Portuguese financial According to Portuguese, officials 

r?alr with Rut ii i!"‘-v appears guarantees for various Angolan here the Angolan delesatioa^had;- .. _ 

lb;,! th.- “frani and projects. shown “good- will 'vahd.'gBir : is.-_aa unpQrta nt^mffl hatgrj 

cordial' private talk* between Portugal is believed, for inrentioo to free at Jeast some &etween "western^Europ^^aua; 
i he leaders of the 1 wo historically example, still to be paying the of these prisoners. : yv '-yiPomguese-spealyng.^xH^ca. The 

linked countries faa« achieved a instalments on a Boeing jet ' It also seems likely thar'th&'sbccess of tm& meenng^ts seeu. 1 ; 
breakthrough progress 

• b.-,; h„ allowed aircraft fioaoced through Portu- question of Soviet and CubariAiere as evidencfe^^.JWC-lQWh 
s iq me neyotia- guese banks but now in the influence in the African .contention. ^ -V 

Madrid campaign to ease West Gentian Chaneejfe 

Suarez: Sahara couccru 

Spanish Sahara tension 

MADRID. June 26. 

starts BlackSyrica yisift , 

L . -to boott^HHhjsteiSd 'Jexftoirts-- 

• -V 0 •• : * 

i3$rfcey.l»a 4 Record' trade deft 

i -of- s3*£$$bti jintlSTTvJieaJy:. ' 

Hast- tf 


_ > dropped^' by-{ HJ . per- eent . 

.per. cent. beic 
. :the* birget, unptjrts’grew > 


’the Canaries CHANCELLOR Helmut Sduai^r-rin concertwiti: _othei^e^ern| 
t, which it is of West Germany todaybegaji js, -partners. .v '.‘-v ; 

Giscard: Committed 

Small businesses decline 


FRANKFURT. June 26. 

THERE HAS been a big decline caper Aktiv. which aims at pub- } 
in small businesses and self- lishing economic news in a form | 
employed workers in West that is easily understandable by 
Germany since I960. During the the man in the street 
period the number of indepen- It points out that since 1900 
dent businesses has fallen from the number of small farmers has 
3.3m to 2.4m. according to declined by close on 50 per cent. | 
statistics. At the same time, the number oT 

Bankruptcies in the sector mu a 11. independent industrial 
ha\c been running at a partiru- concerns in West Germany has 
larly high rate during the cur- dropped by a fiFth. 
rent recession but many small According to Aktiv. there ha- 
businesses have also closed their been above average attrition 
doors simply because the rewards among independent tradesmen, 
offered by such enterprises are such a* earnenters. shopfitlers. 
insufficient for the efforts electricians and repairmen, who 
involved. not only run. financial risks hut 

The 27.3 per cent decline in also face the problems of vorfc- 
the self-employed and small »ng very long hours. Since I960 
business sector was reported in almost a third of such businesses 
the fortnightly business news- have closed down. 

Schmidt: Africa tour 


SFATX HAS decided • 1 increase without alienating Morocco but 
diakunatic efforts i»« rcs-lve its enough to encourage Algeria to 
two key problems in Africa— the drop its support for 

future or the former Spanish liberation movement w - 

Sahara and efforts by certain pushing to have recognised as an five-day visit to - Nigeria .;j!u^v.' B ob's phrticipa.tfod . Earlier 
African countries to recognise African liberation movement at Zambia— his first official trip,fo >thic rno n th at the talks in Paris 
th* Canary Islands as " African, the forthcoming OAU summit black Africa. Key dis^issidtt' tjgtwegn five Westem-fitates'on 

This is believed to l»- rite main Sr. Saurez' Jlioroccan contacts topics will be world ecrapmie^.^e. Zaire probifem- ii one ejkmpie' 
rea>on for 
twu-day \isit 

Sltarez. I tne krnne .'•IsniSlVt. IU MU uuue ui riea,usui tvuuucur-w »cu w -uiidUKOt-’i _ - T - ■rmA aii 'f ini 

Jlomccn. besinnlnl TSis d Estaing, of France. issues. . ' ■ i ^L± r SSSS^£SS?^S^ 

h the first time that Sr. Suarez France is firmly committed to The visit is seen as iinderlfnm^'|SS^ WhlSf^? 

has visiu-d u country on the supportMorocw, andMauritoma West Gennanreadimwto^l^SaSSt^S^mSy'j^ 
African eon tmenL over tne future of the former trrn m. w nolitieel rnk <n 

The Spanish Government has Spanish colony. So far Spain after years in which 

indicated it would ha -? liked to has resisted French pressure to JJjJJJjtaKn has heen^lSely ^inSctjon^orforJ^taveSSLi 
combine Sr. Suarez' Moroccan give whole-hearted support to economi™ 
visit, during which hv wilt spend the French position. economic. 

much of his tim- -•-Itii King Sr. Suarez is also expected to ^ 15 recognised that vfOr siderable irritation at .developing 

Hasson, with another Algeria, take the opportunity to discuss reasons of history Bonn retnains^ states prepared - -to - receive,. 

Desoite the return of the with King Hassan his views on unable to imtiate milit^y opera- ecraomic tad m 

Spanish .Ambassador to Algiers the future of the enclaves of ™ns such as that by France^ -^other 

in recent weeks and a secret Ceuta and Melilla. Recently the Belgium last month to evach%te it as capitalist exploiters./ 
meeting in Madrid inree weeks Moroccan Press bas said that the Europeans from Zaire.. N or-ls- j n Zambia, where he arrives 
ago between Sr. Marcel :no Oreja. solution to these enclaves is there any question of tryia^to . oa wednesday^Herr Schmidt wiXTf 
the Spanish foreign minister, and linked with a resolution of the supplant Britain s speciai nfie-kave talks with 'President ’Ken 
hi.c Algerian colleague. Mr. Gibraltar problem. {o *. Rhodesia and Southern D etb Kaunda — «HJl -seen by the, 

Abdelaziz Bouteflika. the two While such linkage is denied Africa. ' 7 Germans as having a key foie 

sides do not appear ready for in Madrid, diplomats concede None the less, the imporf&jfctf to play for a peaceful settlement!;^, 
such a visit. that if Spain actively wishes to of Africa not only as a producer in Southern Africa. . -In " bothi;^ 

The Spanish objective is two- resolve the vexed Gibraltar of raw materials but as 3n countries. Herr Schmidf wiJl h« 



Labour unrest expected 
to continue in France 


PARIS, June 26. 

Poll upsets 


REYJAVJK. June 26. 

BIG GAINS by the Left in Ice- 
land's general cleciinns shook 
Mr. Geir Hallerimsson's Govern- 

anish unions take party line 


MADRID. June.?^- : 

THE STRENGTH of the Spanish of Franco the present economic Nevertheless the composition 
Communist Party in organised crisis would have been accora- 0 f the newly-elected confedera- 
labour has been confirmed by the panied by * 


ment inday. bui faii-d in produce , : which ended yesterday, elected More radical groups to the left 
a Lefi wing majority in the a new executive committee in of the Communist Party and cer- 
Al thing 'national asf<*mVvi which 37 out of the 42 are tain erass-roots confederation 

ALTHOUGH 9.000 iatd-off backing occupation of eight fac- 
workers at Renault's Flins car tories. non-strikers this morning 
plant have been called back to took over the premises of the 
their jobs tomorrow, the new company’s occupied plant at 
climate of labour tensions in Caen. 

France seems unlikely to blow -t-j, trike . ^ qrsena i s i s 

hliUrfa bef nprinrt e and August now in its third week, involving 
holiday Period 60,000 workers according lo the 

j of ♦ unions, which are calling for a , 

dominated by Strikes at Moulinex. f ur ther prolongation in pursuit! 
the Government s arsenals and of their pav st ruB2le 
the Renault press shop at Flins. ™ l P , „ 
has been aggravated by the y oc ** 5 - especially tboi'e at 

prospect of further sackings in Marseilles, were also strike- 1 
the steel industry. bound ove . r lhe weekend, in 

Redundancy plans at the support of a call by the 
Sacilor-Soliac and Us i nor steel Communist-led CGT union, repre- 
groups involve 2.500 and 4,600 senttn* almost all France* 1«. 000 
jobs respectively, in works in d° c kers. 

northern and eastern France. 'Labour pressures were boil- 
At Renault although the 100- ing also at two groups threatened 
or-so strikers, mostly immigrants, with bankruptcy, the Boussac 
have been removed from the textile factories and Manufrance. 
press shop and replaced, so far a small arms company turned 
no settlement is in sight. At retail and mail order chain, 
Moulinex, where unions are based in Saint-Etienne. 

,'cdc ration of Workers' Commit imposed sacrifices only on the 

The five-day congress workers.^ ■ ^ “ W1UU ' 

Apart from discussing the 
structure and administration of 

tain grass-roots confederation confederation, debate 

member* of the Communist members have been critical of centred also on measures to com- 
Partv. this support for the Government's bat unemployment 

The Confederation of Workers’ policy and reject Sr. Camacho's Sr. Camacho launched an 
.Commissions emerged from argument that it is not only the appeal for closer collaboration 
mmorrev' tn review ine 5lSi:atinn. . clandestinely when trade unions working class that is suffering with the second main trades 
This was the correct ninvp at i were legalised in April 1977 and from tbe recession. union, the socialist orientated 

this time because his coalition j has proved in the recently held These differences were General Workers’ Union. Sr. 
«nll held a majority in the t works council elections that it is reflected in the voting on Sr. Camacho believes that only by 
Althing, he said. .easily the strongest union force Camacho's report to the Congress such closer cooperation is it 

The ruling coalition -of i in Spain hv capturing about 45 approved by 993 votes with 125 possible to strengthen the union 
Independence and Progressive | per cent o r the vote. against and 40 abstentions. movement as a whole. 

Parties held a 'our-seat majority \ it has never sought to conceal 

Although the Prime Minister 
conceded defeat early »n the 
count, he announced tonight lie 
would call a Cabinet meeting 

Dutch workers protest 


AMSTERDAM, June 26. 

after yesterday’s poll. Bift thefts close links with the Spanish 
Progressive Party announced it] Communist Part>. Its secretary 
would stay out of Government ! general, Sr. Marcclino- Camacho, 
and neither the Right nor the | j s a key member of the central 
Left appeared capable of govern- committee and i*- a Communist, 
ins. ! deputy in Parliament 

The Marxist People's Alliance I However, the tenor of the MORE THAN 70.000 public Parliament Dr. Anne Vondeliug. 
and the Social Democrats j congress and the resolutions authority workers staged a mass The protest was attended by 
achieved major successes bj'j adopted revealed that the con- rf„ mn ncH-*tinn in The n»o,i<. members of two civil servants' 

,, - federation follows closely Com- unions, teachers, public trans- 

munist policy on key issues such toda ^ 10 , P roleat port workers. poUce_and mem- 

son's Independence Parly and the 
Progressive Parfv lost five seats 
each to retain 20 and 12 seats 


as wages. 

ment plans to restrict their tj ers 0 f the forces. The protest 

The congress was noticeable salary increases. The protesters was a “complete success/* an 

for tbe way in which the con- travelled by special trains from official of the civil servants’ 

. federation's leaders supported all over Holland for the demon- trade union. ABVA. said. The 

Despite the announcement by | continued application of lhe stration — the largest ever held numbers Involved exceeded the 
the Progressive Party. Mr. Hall-; Moncloa agreements, the package in The Hague. After speeches unions’ expectations, in parti- 
enmsson has not indicated when j 0 f economic and political from union leaders they marched cular since some unions which 

he will resign. I measures agreed by all the main through the town centre and originally planned to take part 

Reuter political parties last October. handed a petition to the chair- bad dropped out Tbe demon- 

Editoriai comment Page 16 ' Sr. Camacho said: “ In the days man of the Lower House of .stration passed off peacefully. 

Rome talks 
go on as ^ 
ballot nears 

By Dominick]. Coyle *• . 

»V-; . ROME, Jane. 26. ' ; 

WTTR 7 THE last sttiis ot 
regional 'fiec^OnS i .cohdudedjlhte 
hJtenjoCa^ 'Italy’s TnaJn’ political’ 
parties now jhave just four days 
in which to , try to reach . an 
agreement on a candidate for the 
presidency, following the midden 
resignation ' of . .-Sig. Giovanni 
Leone. The. flrstV ballot ,is 
scheduled for Parliament on 
Thursday afternoon. \ 

The Communists have effec- 
tively a veto in the .firit three 
ballots when a twS- 4 thirds 
majority is required (thereafter 
a simple majority will s&ffice 
for election), and they have qpw 
signalled their preference fos a 
lay candidate— not a member nf 
the long ruling ChristiaX 
Democrats. - ' 

. The Communist objective 
dearly is to try to have elected 
as President a man who in the 
future might be prepared - to 
sanction the formation of a new 
Italian Government containing 
Communist Ministers, the so- 
called “compromesso storico.” or 
grand: alllanee in office -of the 
country's main democratic 

The Communists are already 
supporting the present minority 
Christian Democratic Govern* 
ment of Sig. Giulio Andrpotti, 
but~ they are not part of the 
actual ’administration. 

f.ajr. fffr " prodactif 

honi6 :'man^ets."It^w»& impel v 
^ > Thm^3>^jBtrififa'sis . ,ge' 
;;exat^Y;^for^gn-^'/..^han. r . 

/ through / £xpprt& tp l pay f 
•^iia^drrj^^msponOTtfc ^ - 

^CompanV- . th 

l eev'eraX mamifectiners, inciu 
v. ing : the ^Kbc . AEG J al 
0 car 'jnamtfactWeis..: were .. 
contact’. With / major ■ .^oreit . 


The sha^ whi ch the syatem w 

r /, Iw'wn. Ho' * 

I- ever,-;> <: 4CLrei^ ‘bankers sa 
/ 'their ^Tpans icboJd - .he ' in .tl 
^.vfprin^vo^'v: sales .r ' recelvab 
•; ; advam^r^.n-Jh.^strength 
" a^io^^port-Wffltratrt th 
1 ■’ 10 tl,,, 

sh ceffep juiS itoHect f ro' * 

^Jbuyer.^Tht; . 
r “ aed. that t yijs,:<aj«ld -l : 
AC instance, Vin .fflirca 
te^'-ofWhfch'Turkey h 
randgrow^g^stocte. t 
~ a2sdv *said r/ th 

-jaot trut that thp^Gfeveram 

want ^KK: ^ncogiag^. - forei 
; f 'xsa pitaMnvestmpti6s>in.Turk 
vWe- ; are - >e*3i ^rious a 
xeceptiye vOh^thif/ . 

■v,f-. v ant ><idnditioo:f^^>fa5mttiji 
; foreign investment’ was th^ 
they be expartqorieii^d- M 
cannot '- periatt ' -inyestmen 


cannot-afford that/V V 

K and Afiah- investor ■- in expor 


Napoleonic relics 
damaged in blast 


The bomb damage at Versailles 

THE DAMAGE to the Palace 
of Versailles, where a bomb 
charge ravaged part of a 
newly-restored wing early yes- 
terday, was put at Frs. Sm 
(about £690,000 ) . But M. 
Herbert Landais. Inspector- 
General of French Museums 
said the losses were incalcu- 

Furnilure and relics of the 
Napoleonic period were com- 
pletely destroyed, statues shat- 
tered and paintings tom by 
the blast, which opened a 
gaping hole in the ceiling 

between tbe ground floor and 
the famous Gallery of Battles. 
Among the works feared tn he 
beyond rerovery is one by ihe 
early 19ih century painter 
Guerin depleting the first 
investiture of lhe Legion of 

Telephone calls were re- 
ceived in the name of several 
extremist groups claiming 
responsibility for the attack. 
One was a ‘'Workers Revolu- 
tionary Group s affiliated to 
the Armed Nuclei for Popular 
Autonomy, an organisation 
which at one stage claimed to 
lie Ihe kidnappers of Belgian 
businessman Baron Erapyiu. A 
second was from an 
*' International Unemployment 
Group." A third came, by way 
of Agence France-Pressc in 
Rennes. From the " Breton 
Revolutionary Army." 

Polire appeared to give most 
credence to the latter, the 
choice being between that and 

an act of totally gratuitous 

The bomb went off at 2.3U 
am, placed apparently either iu 
a cupboard or behind a ground- 
floor statue, in the south wing 
of the palace — on the left as 
one enters (he main gates into 
the court. Eight rooms bn the 
ground Boor and first Boor 
were damaged, ih'ree of them 
gutted. There was liUle tlaip- 
age. however, to the main 
structure of the building. A 
watchman was injured- in the 
blast. .7 

The wing, the “jple du 
Midi.'' was iiuiit in the last 
quarter of tin? 17th 'century 
and was chosen by Kins Louis- 
Philippe in 1*37 lo house 
mementos of “all ’^France’s 
glories,” including mmy paint- 
ings he himself 'hadf commis- 
sioned. 4 

The collect inn depicts, in 
particular. Nap a 1 eon's! victories 
and his campaigns in Egypt 
and Russia, and includes works 
by Girodcf, Guerin, Gros and 
Carle Vernel. 

» A group calling itself 

Comecon talks on joint projects 


VIENNA, June 28. 

PRIME MINISTERS of tbe nine- ally dangerous organisational interest loans from other 
nation Comecon group meet in measures, there are many other Comecon countries, mainly . for 
Bucharest today for three-day conflicts of interest, separating, the development of Soviet raw 
talks on plans for closer for example, net agricultural materials. Plans already approved 
economic co-operation and joint exporters such as Bulgaria, for the. 1976-80 period call for 
investments particularly in Hungary and Romania, from the up to IQbh roubles of invest- 
energy and raw materials. rest of tbe bloc, or the Soviet meats in such projects as a gas 
The discussions are expected Union, as the main raw material pipeline, cellulose plants, and 
to cover several delicate areas supplier, from Bulgaria. Czecho* mining facilities. . . , 

such as the method of detennln- Slovakia. East Germany and According to some estimates, 
ing Foreign trade prices between Hungary. the Union would like to 

member countries, convertibility u j S reported that the Soviet push through an agreement pro- 
of the transferable rouble and union is pressing for a big viding for a doubling of this 
the projected target pro- increase in subsidised low- stun to 2Qbn roubles for 1981435. 
gramme for transport infrastruc* - 

Mx.iffucssrinoglu' said‘thathe,>i 
considering a . clean-up ofrtt 
maze of bureaucracy and th 
estaMfehmebt of r one- orga 
which -would evaluate forei? 

■ investment applications. K 
believed that this worn 
simplify .arid expedite evalu 
;ttoir\and eliminate jtbe pio; 

- serious, grievance of - appl 
cants,.'.. * • . - t ..;• 

In _hls . talks Ntriti^ industrialis - 
in -Europe and’tfae U-5. be ha 
proposed joint investments i~ 
Turkey directed at markets 1 
the.Tfiddle East Turkey woul 
welcome. Joint .- partnership 
between Turkish, Wester 

ture and consumer durables. 

According to Hungarian and 
Polish sources some organisa- 
tional changes have also been 
under discussion ‘sinre tbe 
Comecon Council meeting in 
Berlin two years ago. 

Mr. Edward Gierek, the Polish 
Party leader, publicly denied last 
week . that the changes would 
involve any alternative in the 

present “interested party prin 

Beer price pact contested 
by EEC consumer group 


ciple " which gives individual EUROPE’S consumer lobby has reflected concern among Bel- 
Comecon members the right to launched a campaign to become gium’s powerful small-business 
opt out of joint programme. more involved in the whole field lobby - that smaH shops were 
Romaoia nas often taken of EEC competition policy. losing beer sales to super- 
advantage of the principle and As a first step, the Bureau markets, 
a hint emerged from Bucharest Europten des Unions de Con- imparted beers were not 
10 days ago that Romania feared sommateurs has taken up a covered by the agreement and 
a change io the rules to majority complaint by tbe Belgian Con- th e Belgian Consumers’ Associa- 
i voting. sum ers* Association that a recent tion has advised consumers to 

Modifications which have been price-fixing agreement between buy foreign been rather than 

"International Revolutionary j under discussion involve ro* brewers and retailers in Belgium Belgian brands. ' A survey byi 

I .V.lmeil ntmi.inti- nmmnrilv Thu 1C Sn hmi/'h nf fnmmimitti lm>, 1L . .AM.:.*;.* I 

Solidarity*' has - claimed 
responsibility for bomb 
explosions w hieft wrecked 
offices owned by a Bulgarian 
export company in Paris on 
Sunday night. " In a message 
to the Left-wing newspaper 
Liberation, the group said the 
attack was a reprisal for 
Bulgaria's decision to hand 
over Till Meyer, the prison 
escapee; io West Germany. 

oriented Helds: Foreign ii " 
\estment in the field of tourisi particularly welcom» 
he Ridded. 

The level of foreign iavestmex 
' In Turkey is very tow compare 
with. 1^: -market, .size an 
: : ecoirOznfe potential because c 
. muddled official policies an ' 
. opposition , to., foreign capiti 
In the bureaucracy. • • 

Mn Muezzioogltt .said that b 
Expected an -agreement to b 
-reached In- .-August^ between ’. 
the Mmistr^ c or Finance am 
321 ' banks on. the re-seheduiiq; 
•'of about $2.5bn of sbort-terr • 
_debt6. loternationai. banker ■ 
said lhaV this was a “reason > : 

• able hope.” • * - 

Eight major banks, includinj - 
Barclays, have reached a con . 
sensus on the structure o 

- rescheduliiifg. Discussions o> • - 
their draft were held in Ankar: - 
“for three days last weekem -■ 
but a final, agreement coulr-. 

. : ; not be reached. 

.A banker who participated it 
the negotiations said that tin 
remaining., outstaudiog issue: 
were •** minor " and *• relate i« 

, form rather than substance.' 
He refused to elaborate. 

The banker .said that the 
restructuring in question wa 
massive' both in the amount o 
debt. and. the. number □- 
. creditors. He as- well as Mr 
Muezzinogiu anticipated ar 
agreement within the eigh 
banks within 10 days,. possibly 
.after another meeting betweer 
fbe co-ordinating group anc 
Turkish officials: The fina 
agreement will be submitted tf 

- the ratification of all: bank; 
-Involved.' As yet no con 
•tingency plans have been pre 
pared to cover a situation 

.. where any of the 221 bank: 

refuse to participate. 

Mr. Muezzinogiu said that b: 
September this l 7 year Turkej 
will have ;finished concludin/ 
bilateral' agreements with flu 
major industrialised -countries 
on _ debt rescheduling • agreec 
under the aegis of the OECI 
tn Paris last month. The firs - 
such agreement Is expected ti 
be - signed : •• - between Mr 

Mue&inpeju and visiting Nor 
wegiau Finance Minister Pei 
Kleppe on Wednesday, 

operation projects primarily. The is in breach of Community law. the association two weeks agoi rf .„ „ cvllKauiJ 

Soviet Union would like to set It has asked the European Com- showed that the agreement was j The amount beine rescheduled i- 

up a kind of high-powered com- mission to investigate the being widely tent and that lit NKr 100m fSlSSmi and thi 

mittee to deal with such projects, agreement under Article S5 of was very difficult to find "Belgian 

or alternatively several “trans- the Treaty' of Rome. beer at the low prices that. were 

national companies.*’ as a step Belgian brewers agreed with available before, 
to supra-national planning in retailers last month that the The European consumers' 
selected sectors. But no decisions minimum retail price for beer bureau said yesterday that it 

are expected to be taken on these should be BFrl47 for a crate of believed the price-fixing agree- 

issues at the Bucharest meeting. 24 bottles- The agreement, which ment was illegal under Comnru- 

Observers have stressed that the consumers* bureau says, was nity law and a dangerous 

Norwegians are providing i 

new loan of NKr 200m. 

Citibank FatiEty Increased, 
Page 3S. ; 

tn addition tn long-standing sanctioned by the Belgian precedent for other Community - SJ^SS 1 - ^ ** 

Romanian opposition lo politic- Ministry of Economic Affairs, countries. . 

7 SAi&S&’J** www sa».o» 

■ iL ^ W MiH S» t . | Ml >«v nuiU per 41-m 
(Second cliD postage otui h >ta» Voft. VY. 

f . 

- f S- 


fu t , 
to £* 
'Nt i; 
" th i ' 


'financial Times' Tuesday June - 27 1978 

Indonesia cautious | South Yemen pr( 

oyer fresh \ i . BY ANTHONY McDERMOTT 

t i MR. SALEM RUBAI ALI. Presi- policies largely hold sway. It 

, j* • -| l ;dent of the People's Democratic could also affect the conflicts in 

n AT*V«/\ nrn Jk rv ; Republic of Yemen, was over- Ethiopia, where South Yemen. 

jiA-Vrl.- III II If I thrown yesterday after fierce although an Arab and Moslem 

| M. X# Tt U t : fighting m the capital Aden, the country, has for ideological 

i ov n*vir> . ! government - controlled radio reasons been -•itin" support to 

[ ftY DAVID HOUSEGO, RECENTLY IN JAKARTA I announced. I he Marxist govern m-m in Addis 

©ONESLA IS likelv lo return v,*- .... - .u 1 - .. I The radio said that the Prcsi- Ababa against the Moslem rebels 

%he capital markets soon »«; » «,.?.« SOR r of J^ e c i aior , dent had been forced to resign The Iraqi News Agency. 

liSwer. Government officials fertilisH^?^ ■ Pu ,t n ! fe' ,he 50,6 P° ,itScal Rro«P. the which has been ihe mam source 

fkkarta do not put it so 11 lhp, United Polllicar Organisation— of Information from lh e spot, 

uiiwjy. especially as the near nac 4^7?- er - 3 aI I t" e Cllamaja . National Front tUPONF), but in reported that military units at 

fiTCXmtevnf Iiear sas pipeline in . iva— are cum- ; iw hi. .»,L, «r r-.k 

O 9 * 

| South Yemen president overthrown in coup 


i MR. SALEM RUBAI ALI. Prcsi- policies largely hold sway. It earned out with the help of March 1976. -Saudi Arabia opened Soviet Anton nv aircraft flying 

' ‘ i-l 

A V A r. i A 

SAM* J' 

AOEl* ‘Z=T._ z r .•£. 

Th<» rurtir. c 3 m that ih« Pre«i Ahuba a»ainsl the Moslem rebels Ibrahiih a! Hamdi. himself stopped because Riyadh had military advisers with the armed 

‘m haf been foSed 5f resign The Irani Nei“ a-7*'v assassinated in October 1977. written off Aden as Marxist forces. East Germany trains the 

, open torceu in resign int irjqi aws A„i.niy. M . Abc j e j Aiem has since fled beyond redemption. Previously, security police. 

’ the sole political group, the which has been ihe mam source ‘ * J: _ e nn th in c n .,,h th* ™.mtrv h-irf wm»H rn he , • * .. , 

nited Political Organisation— of Information from ih K spot. !? th 5_ S «^' i" d A s _ a .f5i _i.. It is reasonable_ to suppose that 

blutlly especially 0 a«! P th(. ** 30 ^ illca P refinery ai l the Cllamayu . National From tUPONF) but in reported °t'hal mllUarv units! 10 1 Ve,n * n stt? rnly rejected any turning towards the West for Tbe killing of five Britons in relations were strained and 
bSMpt“ P of S^faVollS fact Sfs d °par.u« cam; Bah "l Etteb. » >»'• Chashmi's 0man „* lier , hjs monti re- r,p.,r,s „f hordrr .dti*', 

pan&fertamina toree years !° 0 l!,*?! or " earl > a ac »® al : attacks by fighter bombers on the the strategic southern entrance murder ' depend ent o^ m ea-re reso u rc£ P reseQled 3 ^su.-gence South between the two countries had 

mirths th* ff putJdis tailing off InJtation has ' n »«risntui .nd thd. rn Ih« r hH <!«« At the heart of the Aden Yemen support for the Popular been appearing, in newspapers 

^^3 tjte weight of over SlObn been^ctSS 

“L.“i bt __ b ?? «inForced their coot 

natural caution. 

Inflation has presidential palace and the to the Red Sea bad mutinied At tli 
about 10 PV* r ' government complex. There was as had Hoops in two other areas, struggle 

^ „ . r — ' ' MI.>>WI<llllCllli LUllllfiWA- lilML VT40 4ir* IldU 1 I 1 MJ US Ilk I VI U IJIIIC 

1B74 r°7v, .*i. ver ! a,so Hghting between sections of and at Aden's Salahedd 

muuuh. inn, r> _ .. -If " ... , , «»u iihnuuij unwm ai v uuiis ui .mu . 

The regime is in a verv real k-Il.' Both . rttoSey. supply and* the armed forces and others rai-ks. 

1 very red! hank crpmic tjcnandinn f.-.p Tm.-vx.c< n-i.. 

approaches of Mr. Salem Rubai 

dilemma. Politicallv th? .S hank crefli, s are 
rmmcaiiy the next m 0re slowly that 

span ding far ; aHlliated to UPONF. The coup The 
they were a j i s . ihe outcome of severe dif- ground 

different ** *« ! b |> st sioce ***** From for thVLiberU.oo of Oman Jam ^ Acvo^nT * 

in Rubai a,? A , L e K in , Fn „. c-.-js on a serious scale lor the first some report's the visit of the 

h Ismail A-aHo . _ °.”fr ., anH lime since Sultan Qabous claimed Interior Mmisier resulted from 

few years will be a critical time < Sl > w,y ldar i „ , re a i>s the outcome of severe dif- ground appeared to be between country in the region. The flow j no in ant j t j, ere was ev en tie vent oer t»/0. after mv. ah .xasser -ji'-'namntea, 

for President Suharto with a I fereilc es between the President, the armed forces, controlled hy former ts more prugmatic in his speCu ]a t ion about the construe- ln Be,riU .^f. independent the Prime Minister, had ■ visited 

strong pressures on him to show thaV 115 1 restrictions I w bo is only deputy secretary- Mr. Aii Antar. the Defence attitude, encouraging for ex : |j un D f a pipeline to carrv Saudi newspaper, al Liwa. reported Kuwait and the United Afcih 

tangible results for bis 12 years ‘“P 056 . on ^ cum - '■ general of the Parly, and Mr. Minister, considered )oya) io Ihe ample the development of LrV de from the kinadom's south- concentrations on both Emirates in March to seek finan- 

in office, both over issues like "if; ban . k ^- I Abdel Faitah Ismail, the Parly president, and three different political and economic lies with eas t L>nj fields to the Former BP ;[! dt ’ s 1 _ of . lh ^. border between cial aid. 

corruption and in raising livin° I s a sl S n the complete i ead er. organisations all controlled hv Saudi Arabia, while rhe latter refinen . 3t Muka i la . Aden and South Yemen but It remains to be seen whether 

standards. 6 ° t V rn ‘* bQ “i that U ire has been ; According lo people in con- UPON F— the people's militia, put hard line ideology first. It ap(War ' 5 , 0 have dropped iLs added that there had been mien- countries oilwr than Saudi 

The difficulty in meeting these d C . e - e beetle days of the, tact with Aden, the fighting the Popular Defence Committees was on this b3ils lhal Mr - lsmai1 support for liberation movements slve contacts to ensure restraint. Arabia will withhold financial 

expectations is that the Govern- f l f r “5 ,ina spendi g spree thai erupted at dawn after an all- and the People's Police Militia- sained some ascendancy by in th( . Culf notably in Oman. I" April. Mr. Saleh Muslih. support if the overthrow - of 

ment is going to be pinched ™ Government s now more| night debate within the leader- men and annv dissidents tried overriding pan Arab considera- and Wlth General ' Ha mdi as »be Interior Minister of South South Yemen* president turns 

.tv r j ,. r . concerned with Pivine 1hei.-t.:_ ..i ... . .. . ,; n nc in simnnHinn f!iilnnet . "" ... . .. 

expectations is that the Govern- fv ^ ,na s P endl W 8pree thal erupted al dawn after an all- and the People's Police Militia- sained some as-endancy by in th ,. Gulf nolablv j n Oman. ln April. Mr. Saleh Muslih. support if the overthrow - of 
ment is going to be pinched ™ Government Is now more| night debate within the leader- men and annv dissidents tried overriding pan Arab considera- and Wlth General ' Hamdi as >he Interior Minister of South South Yemen* president turns 

both for funds for developments concerned with S giving the ship abQUt N orth Yemen’s to storm the' paia.-e and ran lions . ,n supporting Colonel president in North Y'emen. the Yemen, paid a five-day visit To out to be a reinforcement of the 

and' for foreign exchange. Over ec ® n . om -’ a bouaL than m Hi ] charges that the republic in into oppnsit ton from troops iovai Mengistu Haile Mariam m j w0 countries although deeply Saudi Arabia and before his Marxist line, 

half its budget revenues and putUn S on the bnpes. Interest , south Yemen had set up the to the President. Ethiopia against tne Eritreans, divided on many issues, seemed departure said that he was eon- a team from the international 

well over half the country's rates were recently . lowered to 1 1 assassination last Saturday of In Sanaa the capital of North It was thought early vesterduy to bo closer than for some time, fident the visit would strengthen Monetary Fund reported earlier 

export earnings derive from oil. .^courage more Jknvaie sector ! Lieutenant-Colonel Ahined Yemen. Col. Ghashmi. was that Saudi Arabia might have The assassination of Geo. relations between the two conn- this year that ihe economy 

. Net. oil receipts after rising inve s lrn ent, thoughso far without jGhashmi. the Jiorih's President, yesterday given a stale funeral, been involved in the overthrow Haradi. which did not displease tries. He was also quoted as would have its worst year for 

'nearly sevenfold since 1973 are n J ucl1 success. Activity could <p be overthrow of President One theory given credence was nf South Y'emen'> president. Bui Saudi Arabia, coincided with a saying that Saudi Arabia's ex- some time largely because Saudi 
unlikely to increase in the next sIow °owa even feather without Salem Rubai Ali has implicit- that the assassination »r North the outcome proves thai this hardening of Aden a fine towards perienee in security matters Arabia had decided (0 cut off 

couple of years. Production is ? renewed burst ofipubLic sector [ lonK f or political balance Yemen's head of slate had been mu Id not be -.o for Mr. Ismail ihe conflicts in the Horn of would be of great value in almost all aid' and 

flattening out at about 1.7m * nve slment — whichd? one reason in the Arabian peninsula, where nruumsed ro discredit Mr Salem lakes a Ear harder political line Africa. Aden provided refuelling reorganising police services receipts from Yemenis lit'inq 

barrels a day and more of it is ‘ or revising the caiffious attitude Saudi Arabia's conservative Rubai Aii. ti mav haw* been than the ousted President. In and turn-round facilities for The visit came at a time when abroad were expected lo drop, 
coming from the high cost off- recent years £. to foreign j * ' 

"shore fields which yield lower borrowing. •••• 

tax' receipts." The queries really concern the : 

imi r" .j tii China hits out at Japan Janata faces nlan clash 

such as timber, rubber and tin redoing to high levels of rnfla- * r U XWVVO |I1UU V1U Jll 

are also likely to level off either J 10n - Popular host ilny to foreign ; V AGAINST /Y17£lif , k ArDO IffliQi'V 

- bec ^l!* out P u ? is 00t exanding * oans - ™S|n«! 280 THEYEN I OVCi iVOfCd [It 0,1 J BY K. K. SHARMA NEW DELHI. .Tune 2fi. 

or because prices are stagnant, about the future dftbt servicing. , | v ' 

There was no real increase of rat >t». which on existing commit- 1 , . . BY JOHN HOFFMANN PEKING. June 26. 

development expenditure in meats already looksfas though it i ?GQ 1 1 [ 1 1 ‘ ' 1 - ! THE MARXIST government of between the West Bengal Govern- the council met for this purpose 

1976/77 and only a marginal ^ climbing bieck above -0 ; ' j ; i ; , ; L -CHINA made a strong proteil accused Japan and South Korea west Bengal has set the stage ment and the Indian Government, late last March, 

increase has been budgeted for P* r cenl in 11,6 19»)s. Whether! 1 1 1 ', J \ , against Japan's “ infringement nn of going behind Chinas back in. f|)r m - con f rontal jon with which might grow if other non- The delav in fonninc the enm- 

the current financial year. « not it does depemfe on the. • { m » i • > - 1 China’s sovereignly “ today, just markias off a joint development. government £ anat . a , slates also join the mittee is due part I v to the central 

Private investment is well down future rate of oil production. 240 • .one week before the proposed zone on the continental shelf in.* ,c ' Marxists in this stand. The ....... , , StU 

■ from the probably unrealistic The mos t encouraging news 1 1 1 j i ■ i j |_!_ \ j resumption of negotiations on a the East China Sea. • by announcing that it will ignore Janata party rules only half the *: ov rnn^nt i* p . cuq anons with 

. . about. Indonesia at the moment • ■ : ■ ^ i j | j i : IA .peace and friendship treaty China had inviolable ! *he Planning Commission’s guide- country's 22 states. internal pniniral wrangles 

is that oil exploration is again] 220 i ■ • ■ ' , , ! ! |1T 1 - i between the two countries. sovereigntv over the continental ; lines for formulating the next The confrontation is due tn the and partly to the difficulty in 

picking up after the. squabbles r i ! i : i i V ■!' 1 i The protest warns that China cv,-.. ,„iA Five Y'ear plan by the states, delay in forming a committee of chnosing the chief ministers who 

with the oil companies over pro- * ■. , ; . . nmol ’ I -will never agree” to a con- " “J “ ; This stand has been taken on the the National Development Coun- will be its members. It is likely 

Auction contracts wbbdt virtually ?nn* ■ • < ' ! 1 1 ■ 1 ' ■ I 1 tinental shelf development pact tne statement, i ms poMlion naa , o r0ljnc j only the National cil. of which all chief ministers that eventually the entire council 

stopped exploration Vjfork. Butj ‘ , !’ , *iQT7 iONOJt, ’iq7R [which Japan signed with South been made clear to Japan in 1974 , Development . Council. the are members, to discuss the con- will form the committee. Pend- 

it will Kn enmn timer hpfrtTP it I 19 / l lilfO J i* r _ , , i^. c | 'Tliiircrl'j v f.n.-i il hue onrf 1 077 I pniinfrin-'c ViinKad aermnmin Honi. tontinne icciiA nf aWdiri >7 nf inn ihis. however the. Planning 

China hits out at Japan 
over Korea treaty 

Janata faces plan clash 


NEW DELHI. June 2fi. 


PEKING. June 26. 

THE MARXIST government of between the West Bengal Govern- the cnimcil met for this purpose 

CHINA made a strong protest accused Japan and South Korea West Bengal has set the stage ment and the Indian Government late last March, 
against Japan's “infringement on of going behind Chinas back in. f ma inr confrontation with which might grow if other non- The delay in 

from the probably unrealistic 

: .. -- - . , . , . for a major confrontation with which might grow if other non- The delay in forming the ennv 

: China s sovereignty today, just marking off a joint development- . , • , Janata states also join the m ,n w ;< nai-tlv m ih^ wninl 

lone week before the proposed zone on the continental shelf in : ‘ he Janata central government Marxisls in this stand The 

j resumption of negotiations on a the East China Sea. ' by announcing that it will ignore Janata party rules only half the fOvernment s pr.ncurpations with 

.peace and friendship treaty China had inviolable ! the Planning Commission’s guide- country's 22 slates. internal pniniral wrangles 

i between the two countries. sovereignty over the continental \ { i De s for formulating the next The confrontation is due tn the and partly to the difficulty in 

i The protest warns that China . in th ' r v' in .. ..jj. Five Y'ear plan by the states, delay in forming a committee of choosing the chief ministers who 
I “will never agree” to a con- s ” c “ , . ‘ " This stand has been taken on the the National Development Coun- will be its members. It is likely 

[tinental shelf development pact the statement. I ms position baa , „ roun j ^j, al on jy National cil. of which all chief ministers that eventually the entire council 

which Japan signed with South been made clear to Japan in 1974, Development . Council. the are members, to discuss the con- will form the committee. Pend- 

Korea last Thursday. And it has and 1977. I country's highest economic dcci- tentious issue of sharing of ing this, however, the Planning 

virtually posted a - No Trespass- The Japanese Government had i sion-making body, is entitled to revenues between the central and Commission has formulated 

ing” sign on the shelf. now signed its agreement with; issue the guidelines and not the stale governments. Approval of guidelines on the next Five Y'ear 

A statement issued hy rhe South Korea in utter disregard of Planning Commission. the draft of the Five Y’ear plan plans of the states to avoid 

Chinese Foreign Ministry the Chinese position. I This means a serious tussle was stalled on this issue when further deiat in their finalisation. 

stopped exploration 4rork. Bui; 
it will be some time, before it i 
is known whether exploration j 
will be matched byi new dis- 
coveries. During this; .period of- 
uncertainty— coinciding syitb and [ 
reinforcing ail the political un- 
certainties about the ^future of ; 
the Suharto regime— it is diffi-j 
cult to formulate realistic long \ 
term economic plans.,Far' it is I 
unclear whether Indonesia will 
in future be an nil '.based; 
economy — with ail that means in . 
terms of ample foreign exchange . 
earnings — or another developing 

Yen soars 

By Our Foreign Staff 

.'ment ..spent 5600m 
imports last year. 

This year it may ha 
more— even though th 
better — because it 

country with a particularly acute | By Our Foreign staff 

C' er £ni“s/^S K i^o^a‘TH E JAPANESE Cbin.fs 
be cut, the food bill ingoing to Economic Council has refrained 

. President Suharto hugejSSTn 

levels achieved during the oil j^roment^te f contem^g^g 'Seal to^ceelCTate Imple- 
bppm. Food consumption is ^emment is comemp^s olentation of ^ existing package 

outstripping food production “gJJJ 0 ® d poS^al of , export curbs, emergency 

i with, the result that the Govern- p _ en ™ of fordin imports and public works mvest- 
”^ S ?S t w 5 ? K,m °° mC SSISe TherSde reLiei^s worked out in April- . 

imparts last year. _ np , at jj umai an( } Batara; extensions Th\ deeisihn contributed to 

? e f£ of the gas liquefaction- trains at some Extent lo\ rush to buy yen 

more— even though the harvest is and Badak- exploitation of and Japan’s Central Bank inter- 

better - because .eleraat.ODal Aru| |”,^ a “Sii deposits; vened\ln the ffoigi. eaohabse 
prices are higher and consumjh Bintan island bauxite pro- market! yesterday \to bolster the 
tion still rising. Food imports We^ ^ ^ enlargement of the value o\ the U.S. dollar against 
eat into the counties ability to ■ « tee | ra jj|. Together the yen.\ Dealers estimated that 
finance imports of investment ^ £jJJ d bp ab0 ut S7bn- the Banktof Japan bought more 
.goods-. . SBhn than SlOOm in an effort to 

The first sign that J At the same time there is counter a\renewed wave of sell- 
was looking for substantially emphasis in Government ing dollars for yen. 

more finance from abroad was its JJ? ®- [J Seating new jobs. The hard-jn-essed dollar opened 
request at last month's meeting £ “J ™ , ?SB and small *t 206LO, its lowest point 
of the consultative group of estamisniDS e3rtendin g rural against the Japanese currency 
donor nations in Amsterdam to scale indusme . jn | rice since world War Two. and slid 

raise the ceiling on new foreign ?? a nd red fstrfbu ting further to 204.50 before the Bank 

assistance and loans to $2.5bn f o r °?“^ 0D ’ TheS e ar e immensely of Japan intervened to lift the 
(or 1975-47 per cent above loan *®£gEf Jto l5? Indonesia^ rate to 205.20. 
and aid commitments made last diffiio It tasks, ine^ admini- Japanese banks were dus- 
’ year.. The ceiling is an indicative bureaucracy « “"J t appointed because the large trade 

limit set hy the World Bank in {tjtfje *Jt 1ld NQ l0 BI ^e over- wmloses. the root of rontmued 
line with what it considers has been founa d ^ yen appreciation, would not he 

prudent debt management. Mr. crowding °L P n f landless poor, narrowed without stronger mea- 
Ati Wardhana. - the Finance growing number oflandi ess poor t restra1n exports and 

Mimster'pres^ed the urgency of TnMWrt" "S’nSi expand te port, . 

the new 'figure on heads of people to Hieher rice ■ Japanese banking sources said 

diplomatic missions in Jakarta proving a success. rme ^ doJ]ar njay w k 

SdShout giving anv precise yields are hard to get from new { lowards a rate of Y200 

PtSam^a. iles wid.that the state ■" ««”' ^.“ irth lo-trol »«- ■£%' "S.'S 

oiL company will again seeking in bringing down the Pn *e same day. 

to raise funds on its own capital |”™ I J e in , “ opula Tioii. . . . 

strength— and .in a way that g * t0 ^ e Govern- CJ Afrjoo ODOOS 

would effectively get around the oblems i n such a penod,. :&• ^V 1 UpClld 

restrictions of the ceiling. uncertaintj' is \fqiniKiiin 

The Government certainly has of uncer^ ^ of the d.stor^ l\aiHIDiail 

rbiti^rpro^rof^rrow- tionsin VO ters’ TeglSter 

•ZJXjS.'St SXZS Si 5Su nnmM 26. 

• ■ — — -SOUTH AFRICA today began 

registering voters for multi- 
racial elections in. South West 
Africa (Namibia) due to lead to 
independence at the year’s end. 

At the same time. South 
African Foreign Affairs spokes- 
... . man Brand Fourie reaffirmed bis 

1 f government’s support for the 

T Itf/jpYTflfi independence plan drawn up by 

C JrlLAOt w five- western countries. He denied 

. . _ „-C+L » that registration of voters meant 

r j-wn'mS.lCfttSOTlri*' his country was proceeding with 

J its own solution in. the territory. 

x . A -There is no suggestion at this 

IWlMMVlG/lCtl+sVQ point of us going ahead uoilater- 

aHy,” Mr. Fourie. Secretary for 
■t. Jasic Foreign Affairs, told a South 

n licence rlCl o African television iotervjewer 

(A> Registration of the estimated 

- - 7 -f SW 440,000 voters in the sprawling. 

Uppn pranieu Ur under-populated territory which 

- - L/C'Or *' ^ South Africa has administered 

- — y~rnr since IM5 is due to Jasl threp 

■ 'Tl-Jh Ri I A months. After that at a date vet 

i IlJ-' J-V*- x " to be announced, they will elect 

' •- • , n r\TA a .constituent assembly which 

. (^y4 S/A/v- / draw up the independence 


i t'i • . _ TJT^+/i 7 Reuter 

Under the 
provisions of the 
GomingActl 968 
a licence has 

been granted for 



atTheRitzHotel , 
28 th June, 1978. 

Members only- 

Ethiopia accuses 
the West 

NAIROBI, June 26. 

A SENIOR member of Ethiopia’s 
Ruling Military Council (Dergue'i 
has said the West is arming 
Somalia to invade Ethiopia for 
a second time, Addis Ababa 
radio reported. 

The radio, monitored^ here, 
said Captain Fikere Selassie 
Wodgeres. the Dergu p's Secre- 
tary-General« told a meeting in 
Addis Ababa yesterday that the 
U.S., Britain and West Germany 
were arming Somalia to ‘ invade 
our country for Ihe second time. 

"Why don’t y'al! mosey on down to yuh Travel Agents for the lowdown. 

If you're travelling to, Pan Airis And all you have to do when you So pick up our 13.30 flight from v* -. 

people are the only ones to fly you there reach Houston is pick up your bags and London. 

from Heathrow. walk out. 

• A short stop in our Vvorldport If you're flying to Mexico City. 

Terminal gives you time to clear Customs Pa n Arris people will take you there on 
and Immigration at New York. the same 747. 

And arrive in Houston* at 20.50, or. 
Mexico Ci ty” at 2 2 .4 5 . 

With the world's most experienced 

Pan Amt People. Their experience makes the difference. 

FAXL'Sl uHau^E^i .'.js-'xCi; ^rx ; - .'-m: -a. 

• *• 



By David Lascclles 

NEW YORK. June 26. 
riding fear w inflation. which 
he expect* to continue at a 
high level according a 



WASHINGTON. 'tir.r 2*1. 


new 757 jet airliner. u*inr version >,f ih« European A’ 
: Br:t’*h Prime Minister. SMd updated Rolls-Roj<-e fi £211 -335 would provide -no ru.c :"r the 

here to-day that he looked for- engine*. British engine uianufi cai/ ’r. 

-..arc! to cilJabnratina with the But he was also apparently Moreover. Mr. Cal 1 '-‘nan if 
U.S. uJi a new generation »f impressed that McDonnell- believed to feel (.hi. t iii** Euro- 
' commercial airliners, and had Douglas — whoso own aircraft, pean solution incvitu'niv ■■■■•uld bo 

hind in the count rj. 

In' Ils May survey, the , interest'-. 

Centre found that its nearly Briefing the British Press here 
1.S80 respondents npertcu ; 0T1 i,,.- ri i>lin?s with the heads 
prices to rise by an average 
S .2 per cent over the next 12 
months, the lushest rale 
recorded by Ihe ten I re since 

operation which went Far beyond aerospace industry 
ucp specific project- This, of course, is rii- nun of 

Mr. Frank Borman, the head toe uNiee< ion to cor- per.-: 'Ml v'ill! 

the recession in 1974- .a. 

Fears were particularly 
strong among high income 
families, where a third ex- 
pected prices to go up by to 
per cent or more. Nearly hair 
of the sample thought prices 
would rise farter Iftan fheir 
incomes in ihe next year, 
against a quarter at the begin- 
ning or the year. 

The survey also showed that 

people who expei-ied things lo 
get worse exceeded those who 
expected them to get heller, 
and that confidence declined 
in the Go\ erumenfs ability 
to deal with Inflation and un- 
employment. Bui a; the same 
time people were ihinking or 
buying houses and large 
amounts or consumer durables 
in anticipation oT price rises. 

The Centre concluded that 
“brisk consumer spending — 
reinforced by fear nf inflation 
;t ml buy-in-advance psychology 
— should continue in ihe near 
term, hut i he .outlook Is less 
favourable for late 1978." 

f Eastern Airlines, which is Buuinn. which has .tlrci r been 

the Brill* *i aerr- 
though si"i by 

itself. Mr. t ..Kachan 
British r.'iu'i ry’s 
‘huh. he ■•■.■lii'Ve.S. 
Genuine cKie-rn and 

to have emphasised in his meet- not merely emotion. 
in?$ thai the now aircraft shoo'd However, u Is clear " , .:i Mr. 
be" ” a commercial proposition" Callushan has not cltnim- me 
and not “a political aircraft." European option, allium. b he is 
Cellajua:; came away convinced It is thought that he basically dismissing some of the Jvwopean 
rram'lii> discussions with Mr. believes ibai RullvRo-’ce^ rulure objection* to a rieai -:ih the 

Thorn t'.ia Wilson and .Mr. Tex would be brighter in joint ve:i- U.S. as pure “ propauan l a." It 
Bouillon of Boeing yesterday lure with L’.S. manuLirturerf. is expected that thi- - : ii!i.. -cl ••■■•ill 
morning that Ihe giant V S com- in spile of ihrsr size, than it loom large at the mH.oir-a jn 
pany v.js in earnest about a would be in Europe. It is Bremen cam next nu.nlli of EEC 
joia’l veniuru with Britain on its generally accepted that the BIO heads uf government. 

ihe prohlTis involved. He pre- 
dicted " c tinjz progress hut a 
humpy r:*1?" in the future. 

it i< understood that Mr. 



or tern- Economic Development 
Congress. tBXDEi — whose 1975-7:' 



dis-ideni tion lor investment in pro- 

protest against 
atomic reactor 

By Our Own Correspondent 
NEW YORK. June 26. 

A CROWD or nearly 20,000 
gathered at Seahruok. New 
Hampshire, oxer the weekend 
to protest against nuclear 
power. Sut the demon -(ration, 
which .took place under the 
exes of hundreds of policemen 
and National Guardsmen, was 
considerably more peaceful 
than last year’s protest when 
more than a thousand people 
were arrested. 

Seabrook, a small coastal 
tillage north of Boston, has 
become the focus of anti- 
nuclear protest due to the 
2.300 MW reactor 
structiou • there. 

This year’s demonstration 
was an orderly affair largely 
because of the authorities' 
offer of an 18 acre sile, 
although some 
threatened not 
site at today's 3 p.m. deatine. 

'REFORMS to aboSi.'h the non." to over-rule 
arbitrary powers gran toil to the pnrarily suspend 
Brazilian s-reStdCiic: in IMA revoke mandates uf 

have h*en r.jiprovcd hy PrcMdent depulie-. rtrip military personnel uncii. c.ipitjl -joud-. . 

Ernesto tiviscl ami tin. National uf their rank, and civilians uf inirortructuie*. assist:- v.-:k to 
Security Council. their civil rights, overturn <ittail businesses and -i:J! •-•- 

The reforms, which could judicial ruling* and censor the holders totalled SIS".. — has 
bring rhe country cl , »cr to media. announced a shift o: 

Institution;' ‘ised democracy, will The presidency’s arbitrary for its four-year plan Tor !"7S-51 
now lie debated m Congress powers over Cong re? s max thus . 

where the" could be broadened he extinguished, ihe applicability A.I ,ug.i "^ic prodiie • and 

further They are intended to of habeas corpus for political ra ^ l,a ' CdnuDUc s " 

! take effect on March 15. 1979. crimes may he restored. The B.-DE support. toe umc 

J when President Gen-el is to leave death penalty. perpetual “jin conic, uie new plan ?: .ms. . m 
‘office Inn max he brought imprisonment nr banishment place greater emphasis • die 
1 forward to January 1 . " may be abolished and new s ™‘ l''*-'™*} 

j The changes come in a pre<i- political parties may be formed. inequalities. on the proxi,i-r. »■ a 

dential election year 
pressure for wider participation 
= in political and economic 
. decUion-makmz has moon 

: This ha- been shown most 'rretgn governments or parties. .. 

strongly by the recent strikes This could end tlw- heavily llon 0 Iar ? e urb,in cpn,r * 
by metal-worker*, which the circumscribed two-party system ih> aspiration has 

Government did not repress in which Arena, the prrvGovetn- btfl%n p ., r . of Br^zilism er-nomic 
■ although strikes are illegal, and ment group and the opposition p ; annttK , fur several vwr*. but 
by the ensuing dialogue between MDB < Brazilian Democratic lhe b^DE has now cumple- 
: management and labour without Movement) operate. men ted it with a new prr.:»sal — 

the Government playing a role. The reforms are qualified hy heave investment in mass rruduc- 
• The I inch-pin of the reforms nexv constitutional amendments of c , IIl5U nier goods, 
is abolition of Institutional Act which would provide mechanisms 

Inumber 5 HAS) and its repres- for temporary declarations of a The RXDE. will give prefer- 

sire offshoots — instruments state of siege or emergency, with ence in 1978-c.i to projects 

which, un national security consequent temporary loss of in colxing low-cost con-UMcr 

iic to toe | grounds, have allowed the prest- civil freedoms, in specific areas goods (especially foodstult; ar.-! 

under con- dpnl ^ otheT aut horitie« to or nationally. ciothingi. in the belief that this 

! , « — :, — .. slate of exce p. • The Brazilian National will generate increased demand, 

raise Wages and improve the 

i keep Brazil in a 

quality of life. 

auuiviBuw | 

to leave the I Erie drilling ban to end 

NY Governor 
challenged by 
former deputy 

New regional infrastructures 
as a whole will receive ciuse 
attention from the BADE, so as 
to grant productive activities a 
quantity 3rd quality of haste 

S . CLEVELAND. June 26. 

! a\ EIGHT-YEAR-OLD ban on impact study by the U.S. Army sen -.r.'s and avoid ' what Ihe 
.'nil and natural driihnq in Co-r« of Encroeer*. RNPE c.-'l* “sfranrAMion" >»* 

1 the Ohio portion Uf Lake Erie Some Ohio legislators have d f . v -|opm?nt of private com- 

: expires on Saturday butt hat will tried unsuccessfully to extend panics. 

; not signal a rush to lap the lake's the ban. Last week, a Bill 'u 
1 rr,hi K,t 1 1 Hrillip» PW 

prohibit all drilling, except for -Policies which '.Way red nr 


NEW YORK, June 26. 
YORK Slate’s Lieute- 

Obs’ervers say ilrilhn;.' i> at three expcnmenial gas wells, imn of ir.uoualitie<." the BNDE 
least several years away because failed in the Ohio House oF plan slates, "have become 

| of various administrative Representatives. .-politically and socially unaccept 

nant-Goveruor, Miss Mary i obstacles and an environmental 
Anne Krupsak, who lefl ! — 

AP-DJ ‘ able.” 


j —-A - - - . 

EEC may 
cut imports 
of textiles 
from Greece 

with 48 

8 y Margaret ran Hattem 

expected to . . . 

textiles exports to the Com-. 
munity unless the Greeks agree 
during talks later this .week to 

rr-snect 197S Quotas, agreed uiic anno :* u -*-Ti-: 'vy- -' r-. . 

infonnaHy lait December. amaut - . 

ihc.-e countries are said 
proiestud strungly to lhe * 

3Sked f ° r re,alia,0I> ' : ? e T ICS “• UA ‘ ....... 

The problem is complicated . Us ^ lb 8ght ^' -• . *$£&*<. hy Ae”^S^wned- : by, 

me f jci that Uie Community's The atrcralt. to bedeuwed i&pospauale. The . company .-is-the s tate'ho Wing; company TM. 
awiL-iaiiun agreement with between 1980 and 1982,- would ;«tebeti n g for tfe hfder; 

Greece does nnt currently con- triple Spains j contingent ^ 50 and' 

tain .1 safeguard clai 

!i in its the scope for 
action, hut it is su£ 

rax rebates on some % 

items, which act as subsidies, 4 g atreraft would bring, sales 
Diav be ■‘topped. Mirage F-ls to 554. mcludinjcJ^x 

Cummictivn officials will meet those ordered by the French rjAviD WHtTF' - -. .-^jgiuais saai 

'■'wft officials later m the week Foree . Sooth Africa. DAY1D 

and if they get no satisfactory Ecuador. Morocco. Uby4; Kw^i«“fiaANCE j\PE?AR^-.-.tff 7 ta v «..^saj^Jesy-to^ge^ 
ri'sronse reaardins quotas, are and lraq ha Ve also bought ■ the&MWed- close r. , TQ‘ securing, art; 

exneeled to announce measures aircraft. " 1 ' — 1 — ftp*tniL.’ifli*hw-jm«ta*; 

n<'\T v.e?k. v 

The Greek i*sue is pan of 2 -' e = 

•aider Community nreblem with ■ centr<:< * „ 

Mediterranean textile exports, pensalory worts to he given to/tfa stam-B^-lls pOlicr.v ha^ 

i >5 said to have exceeded CASA, which cn-opeiy es been against V -batter* ... , 

__ ; . : . " :.n r._. 





t'.’bile other 
:i;/" v .h- prepared 
P-n“.it::ii some 
:s s.iking a iou;ii 
expected to press 
uf -.urtring ’ r > ensure 
are respeeled. 

Trade pact 
with Iran 




EXPORTS OF . British 
manufactured goods to 

‘Germany rose by U per centy 1 ?^ 

TEHRAN. Ju„, 26. ,-urln* .beta. 1»iaVff3SnS 

THERE ARE good prospects c-f: ve *^ much .slower than the T9J-r(icade officials are looking to for • Britain’s bfimpoMifiid ^2 

2 n a?re<imenr ibis year between per tent average growtb ra{e_/or. ; igrwth. Too great a 
the European Economic Com- 1977 as a whole. UK’s sales in the 

munity and Iran, giving Iran 
most favoured nation status, EEC 

At the same time .Brtt^^g^ug^jggP^tya ^ .iag pBgSSaapa 

Energy Commissioner, Mr. Guido s hare of the West Ge» >^«Uf:«niateriaIs much of. whieh;; 

Brunner, said here. . market for wholly manufactured n ce p : i on o F North Sea oiL .S^txGer many , op by m 

The basis of rhp new accord, goods decreased from the M ptt,^. n ot ori.'inale in - Britain. - 3-feh»tT 

;r discus- ceD ^ achieved in 19/7 to 5.6 per^'j- Overall export to West Ger-; p^roteum jespdrfe-ti]p 
.ur years, cent in ilie first quarter of the-n^ny. according to official Ger- cenU aiK bMS.SSbn^ 
of aon ' ^^. ^ tf^uT 7 ) 1 ’ man heures, are growing at-^a share.. 6T-W%Sl76erm|w 

,hich Iran P^c'er is^still considerably faster rate:. Atthe end -of - ambnptpd t& 4.6, perjtx 

u r«r tie oetter than the 5.3 oer cent share- c . ,1 . u„,. .. 


General Agreement on Tariffs Wholly manufactured goods^' 22.4 per eent increase achieved: unt^iaUy.edr^:-E; 
and Trade (GATT) rules, he said of course, represent only a part in 1977. . r:: ■ ’ - A.'.nurfe, ,'Bbritish-es 

” r ‘" H -“ “ i "’ *' ”-““ 1 — *- “ ^ '‘-The main spur .Hum' 'iMen^ .North 

oilv wrioH - is^ con Snmn^ tp* hadt 

after two days of talks with of Britain’s exports tp 
I ranian economic ministers and ; Federal Republic. ; the 
senior officials. - - quarter - "accounted ' 

Mr. Brunner said a further! 
round of talks with Iran would! 
take place in Brussels shortly] 
and he was hopefui for a final 1 
agreement, probably open-ended I 
•ather than covering a specific j 
o?riod, bx the end of the year. | 
The agreement xras expected 

/ 'f : 

Sweden trade sdi#is 

STOCK>fOLB; ^b 2& 


- n 2 n o n ■ o ^ i n d u s nM a J 1 s^oo i ? 1 ^u rh ' SWEDEN' IS heading for a cent Fail- In the' valueSp f its^ imporis^would FuB1jy.-2 per cenfe^N 
«tpel pnd textiles whirh • Foreign trade surplus of around deliveries, west Germany! con- in- the flrsLfcalfioft I97S.-~ w 
-V-i'd he era n ted access to the SKr 3.9bn (S848m) in 1978 and tlnued.-to be Sweden’s- biggest- The Umprdveroenl.Tn ejfpnr^^? 
Fnrr-qean •naricet under appro- .optimism is girowing among its 5 ^^"' ThUTSSteff' ahjEd' ’ 

onaxe conditions. Reuter 

rioUceaWe ' imong ...the' .ebgineer- 
ing comp^mps,;- ; 

Governor Hugh Carey’s re- 
election campaign earlier this 
month, today declared that she 
x\ili challenge the Governor 
for the Democratic Party’s 
Domination in September. 

Proclaiming herself “ the 
People’s Candidate.” Miss 
Krupsak will ensure that the 
Governor will have a far 
busier campaigning summer 

Ottawa Tory to see Thatcher 

ECGD Mexico 
dollar loan 

[export industries, according to of Britain’s ' SKr 2.59bn. whit 

| the _ latest purvey of company nevertheless represented an 1\ exporters andV tb^ paper jfnd? 
expectations by the Central per cent /'improvement over zheVtoard •: 'eR 3 iiige>la£g^ 

j Statistical ‘Bureau, Last year first quarter of lBi /. , . and paper exports are Fbr^easfvS^ 

the irade balance showed a The^ Bureau’s survey, taken fit. tit grow- by-l&per ; wht- '-WvratiM^ 
'deficit of SKr 4.6bn. Mfl y* “»^*ca.tes that the value of th\s - yean - white : frhn v 

Swedish' exports should grow by . products sbbtdd pirt en " 





THE CANADIAN Progressive Institute of Strategic Studies, part of this preoaraiton. 
parly leader. Mr. and Labour Government officials. Mr. «:»Rrk. 

OTTAWA. June 26. 



a *? Sm loan whi^ th t Euro- ; putterta ^Britain SJjjS^n* Of : The-^htpyords 'provide- -*®S 

Joe Clark, will visit London from 
July 5-8. and will meet Mrs. 

than he had planned and may ' • ’ ThatcIiei .. thc BnUsh 

well have to spend more than P-iriv le-.dpr 

»hi. 33.5m be had scheduled for I conservative Party leader. 

his re-election effort. Mr. Clark who will be arciwn- 

Aithough the Governor has panied by Mr. Douglas Ruche. 

Mr. Clark will also bold a re rep- Mr. Roche ts al*»» due »o umi 
lion for Canadian journalists. Lebanon, Israel. Tanzania. 
Mr. Roche is un a tour to discusss Namibia 1 South West Africa 1 . 
foreign policy matters, and it South Africa. India. Japan and 
will take hint to nine countries Korea, 
in three weeks. 

” The postponement of a 

Deri varies SA or Mexico. This is] cent growth in imports to Tilt h “ - 5t ■ ,? r ”-L a , d ft?!®®! 

„ ^ . imports 

, the fir+t ECGD guaranteed buyer SKr 2.fibn. West * Germany 
credit loan to Mexico to be; bought 20 per ’cent more from 
I expressed in dollars. 

The loan 


the solid support of Demo- acting chairman of the Prog res- federal election has enabled us Eaton bids S37Sni lor Cutler- 

era tic Party professionals sive Conservative External t0 continue preparations for a Hanifner: m - forecasts 25 per 

behind him. Miss Krupsak's j Affairs committee, will also 'meet Progressive Conservative Govern- increase in second 

challenge is likely lo be sturdy J the Secretary General of the ment in Canada. Both Mr- R<« he B;il , k America com-. 

herause she has a considerable British Commonwealth. Mr. and J rrew an up-to-date eva Iwa- . t Bra 7 ilian take-over 

represent:!- tion of a number nf key Foreign- pi* ‘es Drayman -ahe-over— 

of the year. - . . cent -In -exporT Value: 

In contrast, imports are estimated That their pxnorF^'i^B 
. _ . . - j- w expected l© grow by only *2 per income for 1^78 -' would 

tics, to third place. change . From »he . February current- plight of ihe , Siyedish- 

However, in spite of a 5 per survey,; when companies thought shipbuilding- industry. 

following in non-orban upstate Shridath Ramphal. 

New York. 

tives of the International policy issues as an important 

Pago r.2 

$7 Rni mn tract awarded to British 
f.ellonh-jne by Ceiulosa > 
erivado SA. under which British 
'ellonhane will design and instsl 
production line at Monterrey. 
Mexico tn produce biaxalfy 
oriented polypropylene (BOPP) 
film — a modem clear packaging ' 
film The production line is duej 
to he commissioned by early 1 

NEDO advice on exports 



Trudeau determined to make changes 

BRITISH COMPANIES making tractors:) and consortia tu choose 
[healing and cooling equipment and support specific agents in 

GATT meeting 
called for 

A rJr4itir.nit Rn-****a for 1 HLilUllh U1IU '-WUIUIg ciiMi^utuii. ntlU RUppini 5K C V, 

i. Kino consider joint marketing overseas markets.* 

GENEVA. June 26. 

nPrtiflHnH f hennoh „ ^IIOUI'J LT/ltaiUCI J Vital uminttnis l Li dll 

ssrS. sr 

: THIRTY-FIVE developing coun- 


Canadian Prime Minister, with the politicaL commercial . and revolt witiiln bis own caucus, bloc of Liberal Party supporters 
his hnld new concent for the social life of that province, because of proposed changes in in tl»v upper hauw is a source 
Canadian constitution may be Pressure on Ottawa from Quebec tbe form of lhe upper chamber of power for Liberals. 
underm inin a a Liberal Party to increase tbe importance nf now known as the Senate, which The proposed new House tof 
power base^in Ottawa, much to the “French fact" has led to is a body of members nominated Federation would «,jve povJer 
the dismay of the governing a slow but steady build-up of by federal governments. Under only to delay legislation passed 
oartv's veterans Iona accustomed resentment throughout the rest air. Trudeau’s amendment Bill it by the Commons, u would {be 
to manipulating the levers of of Canada. Tbe Liberals are would be replaced by a House able to initiate legislation of Jits 
DuWer afraid that It will adversely 0 f Federation. Tola] membership own. except fur money bills, tits 

^ Mr Trudeau, now in his affect for them the outcome of would be increased from the l&i power lo veto legislation wcuid 
eleventh year in office, entered the next general election, cither now tn the Senate, to US. Of be removed. j" 

Politics determined to transform this autumn or next summer. these. 58 would be selected by Senators arc appointed j tu 
ihe constitution so that it j{j e prime Minister’s consti- the House of Couimons.SSby serve until they a tv 75 years told. 

Egypt Kenya 
air accord 

I KENYA HAS signed a new agree- 

tries taking part in the 'Gfeneva 
trade talks have fonnallv 
requested Mr. Olivier Long, th'* 
ui rector General of Lhe Genera/ 

i-alercd Tor the French speaking tutional chan-’es are to be dealt tbe provinces, plus one each from N 0 i having lo seek re-eiedtion 

minority and its language, the w j t h tn two stages. Mr. Trudeau the North West and Yukon they devote considerable tin* to 

so called “French fact." He hopos to so-.- phase nny coin- Territories. examination of levi-Ialion /par- 

sn caiteo -rrenen hope. ... r _ . . r . 

wants lo see firmly embedded p| e iL-d by July 1. 1979, and The western provinces and ucularly in the 0 ; mm met: stage, 
ill the constitution recognliiuD phase two l»> I9S1. ihe 5tn.h the Atlantic region, where the Those who do at lent l regularly 

uf English and French as lie anniversary of Canada's acetjs- Liberal Party’s Strength has been a „d sjj on the c'*iii;iii ttees CO a 
two languages of Canada. s j on weakening, would have greater yr , 0 d job of serutiniMog scfe pn 

Tbe election of M. Rene xhe firsi phase covers matters re proven la lion in the- new ment policy. Cabinet Ministers 

Levesque and his Parly W htch the Cabines has been chamber fharr they do in the niu*r be prepar :l to aiswer 

Quebecois in Quebec two years advised are under federal Senate. Quebec and Ontario detailed questions m the 3enaie 
hrougbt the issue to a head jurisdiction, allhough the pro- would retain there present L4 committees whereas inj the 
and induced Mr. Trudeau to drop v inces question the right of the members each in the upper Commons camniiriL-es partisan 
anv plans he may have had for federal authorities lo act uni- house. Western representations politics divides th>- mejnbers 
retiring. laterally. Thc second phase would be increased to 36 from W ] J0 are above all. interested in 

Under Mr- Levesque the wnuld cover areas in which co- the present ‘_4. the Atlantic scoring political points. * 

Quebec Government has become operation and consent of the region would have 32 seats, up What worries Liberals & that 

much more militant about provinces would be required. fr° m 30. under the new method of 

Having placed the amending major political parties appointment. lhc> -.vill lose their 

Bill before parliament fnr would be repreacntva in the new overwhelming majority in the 

first reading Mr. Trudeau sug- u PP pr house, on the basis of upper chamber. They will be in 

gesfs that /he subjecl matter popular vote iu each province. t h e minority given ihe current 

should go before a joint com- The commons would appoint political siluaiion i;> Canada, 

mitiee of the Commons aiid members after each federal elec- yjr Trudeau, however, div 
Senale and before a first tion. missed protests -a;. mg tbe time 

ministers’ conference uf the Top representatives from the 1 . 0111 “ for action, not discus- 
federal and provincial govern- provinces would be named by S jon. Under thn proposed 

ments next September. The their respective legislatures a tier i-efnrm. members uf the House 

Prime Miniver is uptimislic provincial elections. At present. 0 f Federation would be able in 

that he can uvl lhe first phase Liberal and Progressive Con- s )j as Cabin el .Minisp-rv and be 
of the pniposals endorsed bv servativu panics arc represented ;i bj e k» answer ,,i;estions and 

his caucus, cnnsiden-d hy the and une Social Credii member particiuaie in tion, : 110 ns debates 

Cnminnns and later the Senate sit in ih,- Senate, plus a few but not l» \uti. Today, a 

and after some amendments, .independents. Senator may sen,- a> a Cabinet 

apornved hy July I. 19.9. Of the preseni Quebec senators Minister but cannot answer ques- 

M:,n> old political h;<nd> si> only Tour ar«- 'Tonserv.-ilivpv. lion- 111 the 1 > r,niau>n> or jwrtlci- 
he lia-n t a hope pf achieving while 19 are Liheial and there is pate in their dei'Htc..-. 


Luxurious furnished and serviced 
flats ideally located near Govern- 
ment Ministries. Central air 
conditioning, colour TV. video 
and music, swimming pool, tele- 
phone in every room and telex 
around the dock. 

Fo’ reservations coll fitUS? or 
Telex 2Q1bbS Pe:>de Sj. 



East market* might 

Development Office report. 0 'f ^TlpSUiS^mikir** 

ft points out that many manu- equity stake io a joint marketing, . — — * 

Tacturers or this equipment company together with, perhaps, i^sreement 00 Tariffs and Trade 

produce complementary products the National Enterprise Board. Ju 1 * t j ca ^ a ,T1fie ting of 
sold lo similar customers and Tbe company would have one-lf:® Tr 3“?N e Sotiations Commit- 
could spread costs and risks by 0r two-man sales office* in two a . ffrowP t h -tr if 

acting together Id specified three Middle East locations. Their ,f° act , as a steering 

markets. objective would be either to sail i * ror “* e w °rid trade talks. 

Apparently the developing 


S^,n an rL,i i more co-operation between UK charging a commission on sales f h “ ^ri" ad 4 ®? ne , ahe f d with 

Morral) rrom Nairobi. a,l_ heating and cooling equipment ti> Middle East countries. : „ be trade talks, leaving the 

J^rant.Wnr mwlcturers and^S ’SianS- N'EDO is wif ling act as a eata- \tS£ “ff™ P ro ^f of ,. 

time b The IcreementwJsli^S ^Cturers of plated equipment lyst Lo the fonna tion of ciwipera- ^ “*A ^52*Srt?S 1F eemeri1 "OO r 

in Nairobi 8 bv^enera a i 5 E^Y - such as building materials. Uve overseas marketing ventures S t lhey were ' l ~ ^ K 

SJSJSSl *WaS« of- £ iP-Pi »- valves. and n»t necessarily "hose f “ ! n °Howe?er U ^ 

Egyptian Civil Aviation; ’’Such co-operation might in- lowing tbe suggested pa item. J Representative • Mr * ^ RnhlTrt K%' 
Authority, and Mr. A. M. Shitaka. j elude the establishment of joini ■■ Exporting henting and coni- 1 Strauss, said vesterdav thVi ho 1 * 
Ek?puty-Secreiary in the Kenya warehousing facilities, repair and equipment— with special : was delighted' to Ip^iTi rVr 

MiniPtry of Power and Communi - 1 maintenance services fin partner- ,mvhasis on thc Middle Vast." { develonin® country rim, ««» 
cations. 'ship, perhaps, with local con- Free from NEDO. ; Reuter y._ request 





Upjohn deal boosts chemical industry 




THE Portuguese Government already produced by Quinugal. major contractual project -to As a- result twh™ 
has formally approved a joint but which has a much more have been successfully screened granied certain in£I£J a „? 1 LL. 

venture agreement between restricted world market than by the Portuguese Foreign fig . ThS^n iSSl 0 ! SS 

Quimigal. the nationalised oetro- polyurethane. Investment Institute, a Govern- exempt!™ fS ^ 

chemical company and L'pjnhn Total capital investment by mcnt bodv set up earlier this industrial #I? l j„ a - ny ■ of 

of the U.S™ aimed at allowing the joint venture company called year to deal with foreign invest fiveTears of U*B .Ant H 

ihn Dnrtuniiptp nfltrochwnira! Jsnunr will h#> sotim mhiia usi,i ; . __ ... - * “ , . 5 “ " ” 




the Portuguese petrochemical Isopor will be S20m, while add;- merit 'as'well’ as the “transfer . of tion/and 5 °“‘ fne projecl ‘ s opeta ' 

industry greater access lo the tlonal financing for the project technology. 

a v, ms projects opera- j* 
a SO per cent reduction 

world inarkeL boosting exports, (estimated at S25m) will' be’ in "Portugal’s current -foreign 7e«ldyeari W3r * bI? dlUlnS ^ 

and coniributing in a positive thc Turin of long-term credii investment code (announced on 
way lo ihe country s current from Chase Manhattan Rank and August 24 last year? stipulates Jojnr venture 'programme 
balance of payments. the Export Import Bank (60 per that before a foreign company as *be one agreed hy 

Under the agreement Quiuiiga! cenii. as well as from lhe is allowed to Invest it must first ‘-Pi^bn and' Quimigal arc 
will use lhe U.S company’s tech- Portugal’s national development prove thal the future inveslmenl ex Pecled to set the pattern for 
oiial know-how and access to the bank (Banco Naclona) do will be of overall value to the ffi uc b of the resirucruriDg of 
intermediate chemical product Fomentm. Portuguese econoniv Portuguese industry that *n 

SU>E lo build a new factory in The plant .is. expected in be Upjphn’s upplieatinn a near- 10 had! - v n ?eded . fur. Portugal's 
Estarreja. in north west Portugal, completed by 1981 with a have mer lhe' essential crllena- succe3sf ul entry mto rhe EES. 

It will be capable uf producing potential commercial value that of making 'a positive eon: ’Much of P n rta 2u «r mri.Kfr, 
BO.flOO tons of polyurethane per estimated at S*5m per year. mbuiion to the country’s todav depemU h^v fv In iZ 
year- MDE IS a demalivp of llir The agreement between h^iance of payments, ihrough pori; of raw ‘ on ,m 

I’a^e chemical anchne which k Quimicai and Upjohn 1 .- ihe flr<i lhe promotion of exports. .capital goods. 




materials and 



Sh ,: ?? x v 

■.fluk ■ 

.■*-. .• .. .. . 

If you’re left speechless at the prospect of 
orting to unfamiliar places, go and see your 
1 NatWest bank manager. 

You’ll find he speaks your language - and 
ikeirs For specialist problems, he’ll call in our 
experts from NatWest International and Credit 

^B^wcendicm? they know everything you 
i^dtoknowto expartsucee^fu]]y. 

look after all your foreign currency 

nager will help you 
nt exported before. 

problems, sort out forward exchange contracts, 
arrange any international factoring you may 
require, and advise you on local 
customs. Your local NatWest 
bank manager is only too m 
willing to become your personal^ 
financial ambassador. 

All you have to do is go in 
and ask him. 

Just ask him. 


i'wj - - 

KB3STBAB-V® 155 


»ir c . *■••>••• w . . 


:‘T r ; 

ViJ j':"A 




ritish airlines 

or Dallas route 



BRITISH AIRWAYS and British the U.S.. of which^O ften^ach iocal_ authority _obJecinn 

By Peter Riddell, 
Economies Correspondent 

POLICIES to reverse the relative 
decline of manufacturing In the 
UK will be considered at a two- 
day conference in London of 30 
leading British economists. 

The conference on de- 
industrialisation has been 
organised by the National 
Institute of Economic and Social 

It will bring together econo- 
mists of Widely differing views 
to allow a detailed di.scus."ion 
and comparisons of their 
approaches tu a major policy 

Among the participants are 
Sir Alee Cairncross and Mr. 
-Watter Eltis from Oxford: Lord 
Kaldor. Mr. Michael Posner and 
Dr. A jit Singh from Cambridge: 
Mr. David Stout from the 
National Economic Development 
Office: Mr. Roger Thatcher, the 
Registrar-General from the Office 
of Population Censuses and and 
Surveys: Lord Balogh: and Mr. 
Stuart Holland, from Sussex 
University, an architect of 
La hour Parly industrial thinking 
in the mid-1970s. 

Topic* to he discussed include 
the nature of dc-industrialisation; 
"relations between price com- 
petitiveness and manufacturing 
performance; lahour supply and 
employment trends; technical 
innovation and trade perform- 
ance; the services sector: over- 
seas investment: the Dutch 
experience: industrial strategy 
and the use or North Sea oil. 

The atm is to produce the 
papers and a report of the pro- 
ceedings by the end of the year 
in a 250-pa;e book edited by Mr. 
Frank Blackahy. deputy director 
of the Institute. 

A similar conference on 
demand management organised 
by the Institute last December 
published its proceedings this 

The economic conferences are 
hased on those organised by the 
Brookings Institution in the U.S. 

Caledonian Airwavs join battle way) are to New York and the tbe start of the inquiry ™ 1 
i tomorrow before the Civil rest to Washington. There are 31 that to terminal aj<» 

I Aviation Authority over which of a further six flights (three each be penmtted until .ne 
{J em should be the designated way) between London and ment had clarified ;■> airport, 
! UK airline on the New London- Bahrain. So far the airline ha:; strategy. 

DaHas/Fort Worth route. carried over SO, 000 passengers 

Th*> State. airline will be urging on Concorde _ if**, 

at a public hearing that under • In Canberra yesterday Mr £ JOf aitpOll 
nclo-U.S. Bermuda Two air P. J- Nixon. Australia s federal r 

thp Anglo-ILS. Bermuda Two air 
agreement it should be allocated Transport Minister, said that eon- caniir :+- 7 ^nr 

iSt Da Has/Fort Worth route, siderable progress had been ^LUIUJ UkAV 
British Caledonian, on the other made in the first. round of taiks B 
hand, will argue that because it between Australia^ and Britain j-jgg 

and Britain 

already' Hies - to Houston it over cheaper air fares between 
should he given the right to the the two countries, 
other Texas route as well. The Australian negotiatin- 

Finanrtal Times Reporter 

! The U-S; airline now flying team returned home yesterday. THE LEVY of sop per peraon 
! the route is Braniff. Using Boeing but Mr. Nixon said I the talks \ = n a V for 

No check 
on job 
Du Cann 


THE LONG-RUNNING dxspnfe;- it was a^mat t&s 
.over piecework payments .^'-that_, Westien4^n>ad«^? 

Westland Aircraft's Yeovi! helt coptfcr “ 

copter factory bn' » SgV-ig&BgS $8385&tSSSff 

facturer and has resulted inr ^ ^-end ^ 

company threatening to disnoii&'.wage bill at v Yeowt^iyreasCTtp . 
its 2.000 manual workers* . -:>;vrliidi 'the 

__ . __ ^ RT.^t- 

ssMf tfyl April^-this 

y.-*: . * y 1-,"* ~ aiY *** ^ n *• 

Two weeks ago the. compi^'-JN^ ; jnatche^y.:tocfM^8,_pTi^|y- 


1 said that it was forgoing 
j interim dividend and, that pro: 

itwvuT.v - r.-vr- J - | • Ti-TjriT : 

jv.-.'Tbe 'oonapMy ^ -vfol 

in tho present year were 

, in uae present year were luuny' ^ . . .. . 

to be disappointing because /&£; ;Wdifc system ^Ppayirfttrts > Which: 

PARLLYMENT was voting large 'the pay problems at YeoVsL- 

of money to promote j What shocked the City, •* a-yjfo •" jjafedffiflMfc ytt-l 



[e IS oranin. using Duemg wut *7 MV n?V for I FuDllC ACI 

and Gatwick airport would be resumed soon. It was gers at UK airports 'V JJJ, !° l ; vesterdav. 

also plans to serve clear that both Britain and security services is n*i J\peciea | - 

employment. yet there is no; ever, was the 
way of telling whether they -were (provisions of about £5m . ... 

effective. Mr. Edward Du Cann, i against helicopter operations laifc ; , 

chairman of the Commons* : year were likely to be snh-^L' 

Increased *fn~ flteV*: 

Public Accounts Committee, said 

> ! n a If ns ‘"Fort Worth from Wash- Australia shared the objective to r * se above 90p in 19<9-S0. He lo1 ^ 
iPn’ tnn liter thlf ye™. " “ing of rcdnclng air fares a. much u Mr. Stanley Cl.ntnr , Dav,s. | Permanent Set 
i p.'-.n-dn suh^onicallv under an possible. Parliamentary Und" r 'becretar;. j Department of 

1 C ?reement' w?th Britiib Airways. • Mr. Iain Glidewell, QC. head for Aviation, said in a written I was appearing 

Sir Peter Carey, 
Secretary at the 
Industry, who 


WESTlLANIl ^ 'u ^ ^CGaild ;adiie¥&:100 , . 

y ^^^sessss^tm. 

- - 

present year. 

This weekend the com 

said that the pay row had placed; ” . . •■l. , -i - £ " 

the future of its Westland HeSfetactoty which - 

appearing as a Vitness WP^r subsidiary hi jei^rdjj^gif.. the raanual w^^^vwas-' -Offered^; 
. the Committee. 

The State-owned airline says of the Government jnquiry into P ar i‘®™ e 2 i«y_answer_;nat wh^te before ^ | de^J : ^sing^statements •'ih-.'.ffiir.fcnatoe* 

,uhe nrm ngures as^ssinp PJtv «-a«t that another Fafa-wtr>h^ mnniul WOrkfeTSL- - •.•j.r’-SSfe 

! ir a u n wants to ftv Concorde on plans for a fourth air terminal at it was difficult to 
1 from Washington ‘to Texas sub- London Heathrow, returned to forecasts " unless iher- are very 
Isonicaliv from this November, the airport for the second time excepiional developments I hope 
I hut plans to introduce a daily yesterday. . the -, r , atc ? f lfv: ‘ j“2i n l I 'm 

1 Tri-Star service betwpen the two He toured rhe site proposed for 1980> will not exceed Pup per 
cities from July. 1930. the fourth terminal nn the arriving passenger." 

Bnti ; n Alrwavs already southern perimeter rnad south- In making this statement, the r ^ me Ml , 

operates 26 transatlantic Con- east of the existing three passen- Minister is siviire some advance ( raainta i n or safeguard employ-, iQ ^ City ^ persuaded, 
corde services a week tI3 Bights ger terminals. j notice of the likely rate to tour: ment- " } the Government would" 

each way i between London and More than 400 individual and organisers 

!— «£ ou “ ■» ‘^SLaySSr* A -w=UiSb£ 

- The measures referred to are|- Westland's share -price. 

under Section < of the front its- high" Yoc .. . 

Industry Act, which allows for year of SZp to a low o£-30& ??f£te£terff said tiiat 
! Government grants to provide.] 0 f th e companjr’s *" Ji: ” 

No hard reason 

public sector pensions 


ARGUMENTS for abandoning basis similar to that of private the level of past service nenefits 
funding of pensions for sector companies, only a system increased when worker.; retired, 
local government, nationalised capitalising future liabilities was IF the funds were handed over to 
industry and other public sector suitable. 

workers,- are considered in 

j . Public sector pension funds . • h n , d benefit 

written evidence presented to now have a market value of tneir casn ,low v0UlL Mnexi1, 

the Boards of the indusvnes con- 
cerned or to the local authorities 

the Wilson Committee* by the a "^ ut "/libn. and are sowing by b >' about « bri a >^ r ' 

Government Actuary's Depart- about £2Jbn a year. The Government Actuary say 

Mr. Du Cann said that accord- 
ing to a recent report by the 
Comptroller and Auditor 
| General, only two-thirds of the 
i jobs for which grants had been 
made under this section had been 
actually created. 

“If I were a cynical man, I 
would say that this was all a 
con — that companies acted on the 
basis that no one was going to 
check their forecasts and made 
up any old story.” 

Sir Peter replied: “It may be 
that we were conned in the early 
days, but I don't believe that is 
happening now. 1 do not believe 
the departments are soft touches 
in this matter.” 

The Department of Industry 
says I was beginning to match predlc- 

to collapse completely, - drawn because — = 73 : 

A recently negotiated . flffeat . would have jnflaitted . OBfi-'. ’.Weytlaiui- g^s .thfi aftwapt 
contract involving Westland -i&d;- already s e rious differ en tia.1 prob- CBd lHOcewpiA- 08. a> sf 
Rolls-Royce to suppIy Lymc^ems with the staff.- '-:: ; ^h&.cpmf^ny‘.oOt.ofS&; 

i engines 
this argument 

.At the centre of the company^ group, and a work measureinent::BHinimeiy : teoUght taM'taKing _ 
pay problems is its contract With Scheme which - the 

the Ministry of Defence,^; required was not incluaed in th 

negotiated ia 1973. to suppjy^proposais. • : - - - 

Lynx helicopters to the Bcitisfi- A new agreement was reached Sa^^JP^^.dQiejm (Ut. -ra. 
jand French forces. , on June 5 last year. This moved ^viability^irf ^company* -- 

ment. The is partly because the level that lhe savings could be used tojuons with results, but it would 

l The Government Actuary - con- of j ncome f rom employees and increase working capital, reduce j probably be about six months 

Sixth form 
grants plan 
costs dispute 

By Michael Dixon, 
Education Correspondent 

A DISPUTE over administrative 
costs is delaying initial agree- 
ment between Government and 
-local education authorities on 
means-tested grants for school 
.sixth-formers, which are due to 
start in September next year. 

- A maximum gram of £7.50 
.weekly seems likely to he 
approved by both sides in Lon- 
don today. An additional £4 
Chitd allowance from April would 
-bring the payment into tine with 
-allowances for unemployed teen- 
agers at £1150 a week. 

The Councir of Local Education 
-Authorities, however, has sug- 
gested that administration would 
add about 10 per cent to the 
cost of the grants paid to 
"children staying at school beyond 
the age of 16. 

••• The Department of Education 
and Science — which hopes that 
the scheme might persuade up 
to 60,000 more teenagers to stay 
in full-time education — believes 
that administrative costs would 
be negligible. 

It says that local authorities 
. already have machinery for 
'distributing grants to students in 
further and higher education. 

; eludes that “ there seems no emp i oycrs is . s0 far. much greater prices of goods and sen-ices 
compelling reason why the local lhan the , evel of benefit pav . or in the case of the local 
government scheme should be jnents and partly because as well authorities, to relieve rates, 
funded “ but present schemes for as earn jnB around £9Q0m a year . However, the Government 
funning pension liabilities of from interest, dividends and rent. Actuary says that the technical 
public sector trading enterprises the aasets in which the funds are problems of converting funded 
could be abandoned only if these invested are subject to capital public sector schemes a non- 
enterprises also abandoned their appreciation. funded basis would be complex, 

claims tn run on normal com- If the funds were closed to new possibly involving sale of ext^n- 

mereial lines. contributions, and the assets and sive assets to the possible 

If the Government w-as pre- earnings were used to pay past detriment of the investment 
pared to guarantee the pension service benefits, the Government markets, 
liabilities of nationalised indus- Actuary estimates that there , If. however, the rate of inffa- 
tries there would he no reason, would be an initial saving of tion continued high, and real 
on grounds of security, why such £600m a year in local authorities* rates of return on investment 
schemes should he funded rather spending and a saving of £1.5bn continued low or negt'iive, pres- 
than "pay-as-you-go.” a year for the rest of the public sure would grow for a change 

If the nationalised Industries sector. to a new system, pnssihly for a 

were to operate on a commercial The savings would be eroded as material pay-as-you-go scheme. 

No courts 

for judges 

TWO .JUDGES hearing cases in 
the High Court. London, today 
will not have a court because of 
,au acute shortage of accommoda- 

Lawyers and witnesses in the 
cases will meet in a court 
corridor to wait for a High Court 
! official to try to find them courts 
where hearings might be bold or 


Generators for JET 

The European Atomic Energy isobutanizer column, at £373.000: worth of council hnuse revitalisa- 
Community has awarded a con- EMTROL CORPORATION, cyclone don and construction in Newcastle 
tract worth more than £5m to separators at £311,000; and upon Tyne; and an Activity 
GSC MACHINES. Rugby, for two PIGNONE ENGINEERING for an Centre and public house at Milton 
2000 MJ flywheel generator con- acid settler and iso tripper at Keynes, 
vertor systems for the Joint £000.000. ■* 

European Torus (JET) nuclear Contracts totalling £7.5m have 

fusion experiment, at Culham, been won by DEREK CROUCH A contract worth over £300,000 
Oxon. CONSTRUCTION COMPANY, in- pas been awarded to FOSTER 

The two systems will provide Hi WHEELER POWER PRODUCTS 

pulse power to large coils which ® [h ct J. Q d n s ‘ h for the construction of fired 

t<«>n r ltd nAmnl/tr m *1 G ~ rtftJfP * r J . * ^ _ - e_ . 

before the computer details 
were available. All the depart- 
ment had were the disaggregated 




V 1 * ;.r\ 7-S . *“ “ 

INTEREST IN. a FrantxbBritlSl: ceived by Frei»3i --aflgS' : . Briflds \l*srft-T±naniecw J 
plan to revive the Chiumk railway planners. - V ^atrlly^ , delayed TRS{w«g?B^. an 

Tunnel concept came ywSjr : , - A 0B t ^ s - 

from Herr Kurt 
West German 

„ . Herr Gscheidle, whp warvjh planned 

Even when all the figures were) ^ ^ fo Qa . 

put into _ the computer on the | maUers with Mr. 


A communique -on 
wSi^'said that Britain and 

produce the complex magnetic 

c a bousing estate at Rothesay on heaters in an extension to the 

configuration to '"duce current ^ 0 f B U t e ; more than £im- Humberside refinery of Conoco, 
into the plasma and help control 

issue- from others, some of them 
intangible." r - 

Mr. Du Cann said: “Firms 
calculating things in different 
ways is no reason for us not 
to have these figures. It's the 
job of backbenchers to see that 
the job of Government is being 

Sir Peter denied a suggestion 
by Mr. Robert Taylor, Conserva- 
tive MP for Croydon North-West, 
that a Department of Industry 
civil servant knew about depart- 
ment intentions to give a grant to 
a Welsh company before his wife 
bought its stares 

Sir. Steven MaJtz's wife had 
been a shareholder in Penrad. a 
central heating manufacturer, for 
a considerable time before the 

He had made extensive 
inquiries into the allegations and 
has concluded that the purchase 
was a coincidence, Sir Peter said. 

The German delegation h»ia& cent of . goods and the: rest g6 bjr':7 - 

raised the Issue, an which Mfi, ro5d; >’•" - ** ; -- • ■yesf£Klay^Oif^a‘--flI- .pervCTajt i) 

Rodgers has - studiously ^ ; dreajg'; 

at complaftfts .by Hexr Gscheidle: Ranted ijTy"; the.'Utertbarr authfir 
atffie Szxtislr-. authorises^ were ; oattb3r> 

the shape, size, position and 
stability of the plasma ring. Peak 
power is about 200 MW, and Lhe 
pulse can be repeated every 10 


ORDERS totalling more than £9m 
have been placed by main con- 
tractor Snamprogetti for equip- ; 1r( . mi? v T(: 
ment for the fluid catalytic crack- K&oiuawia 

Bid to close chemical plant 


IN Pontypool, move elsewhere nn the grouifl The incinerator is a few 

inc unit and related facilities South w » les - ar e campaigning to that, at its present site, it & hundred yards from a residential 
under cor^lmeiion for Pembroke close Ke-Chem International's JL. haFC !__ ,ong 

Cracking Company at Pembroke, chemical incinerator, the plant at adTice ’“^u^ bv^a^ IrSl mS? toeS " ^SdeS 

South WalPs. whpre it will serve, the t-entre of the row over Hie. aav ce SOU = nt DJ 3 _ 10CM UUSDie tO SU m IDeir gardens 

SsS PostaT^rp^ KS Te sA’sssLrtss '-ar.fffir.i~L 1 , 

CAPPER - NEILL INTER- toxic Insecticide^ Kepone. Environmental Protection Asso- The association said yesterday 

NATIONAL has a £5.9m contract ' ' ' ' 'TV „ ciation. It has been told mat that it recognised that Re-Chem 

for atmospheric storage tanks for They have applied formally tn although collecting scientific was doing a vital job in disposing 
crude oil and refined products. tfte Attorney-General for per- and medical evidence necessary of toxic wastes, but local resi- 
and storage spheres for propane; mission to pursue a High Court to prove environmental damage dents did not see why they 
while FOSTER WHEEIJ3R is to action against the company. If would be difficult, the fumes should live with the conse- 
supply three process .steam boilers it is granted they will seek a from lhe plant provide a iood quences. The site of the plant, 
at £2.7m. Other contracts include High Court order requiring case for seeking closure onfthe established, in 1974, was a 
MOTHERWELL BRIDGE a de- Re-Chera to shut the plant and ground of public nuisance.^ planning blunder. 


commitment so fair. 

Sir Peter’ Parkdr, ch&/zwt&" of \ that the Hritish^authdrifies^ were ; tiefe:te3ritishTrda(£ hahHefs- TK 
British Rail, who^was present not: giving 1 sufficient support; tar _ta£es the 1 te^t huihhef.oi pe 
for part of the talks, presented British Jtail’s \ international mits" available .to. 9,W)0, a levt 
Her Gscheidle with an ontline freight business: \ - ! )r still xegarded . by the Britis 

of the tunnel scheme as con- In particular, the^ermans felt Government Os far too low. 

Move to cut arms 


_ . eus sales 

to improve its methods of obtain- personnel and for sales df to. be maximised, we r; 
ing payment for CJ.K. arms sales ammunition have frequently noi; essential that " every * 
overseas and reduce the volume been - presented - -to customera^e made to.stresintinfe .. „ 
of outstanding debts. . until a tong while after the to as to keep the overhead: cost 

The TJ.K. had £87m worth of 


, had incurred the down and prices as higtf as. con 

bad debts on arms- sales In 1976- ***** * * p, ^ W 9j nQ *‘^ ^ 

1977 of which nearly £14m had de ^ ,re 1 .7 0 . t D ® s - .. .. . _ • ‘‘The staff concerned shoal- 

been overdue for more than The Ministry said that efforts adopts a * fuliy ; . commercis 
nine months. Nearly half was would be concentrated first on approach . toward these tran: 
owed by four countries— not dis- improving systems of securing. actipns.^rlghtifrcnti:- the time a 
closed— some of which “were speedier payment, including the' order is accepted ? vp -to when th 
almost certainly having cash flow introductioir of a- computerised customersays the-finalhiti. " 
problems.” " invoice " control system, with The MBs -were also critical o 

The latest report from the better methods for monitoring the cost of the Navy. tog- Wakefu 
Commons committee of public aU typesof claim and for hasten- renamed by some Navy personae 
accounts says that it was told Payment by debtors.- Thto as .“WastefttL^ - After" -roan 

that no overseas country had should- be in operation by next defects, including ■ i breakdown 

been refused arras deals because year. . immediately after a £1.9m refi 

of a poor record of psj’ment, but It wa * also reconsidering the overall "cast of maintaining 
T •• Ministry's defence sales administrative arrangements for the 493-tonne ship and recti fyin 
o ^anisatlon would expect pre- defence sales generally, aiming faults, has amounted to £2.7m;'.[('jD -j 

payment in the case of one at the Royal ordnance factories on top of its purchase price o " 1 

country. and the* Government-owned Mill- about £700,000. 

The total outstanding debt to hank Technical Services, both “We find it difficult to accep 
the Ministry rose from £3Sm at ptoying^a more commercial role, that the Ministry got value fo ' 
the end of 1974 to £S7m in 1976- The -Commons committee said the £3Am so .far spent on thi 
1977, "thus causing the Ministry that ‘ if the benefit of defence ship” 

a considerable loss of interest - ; ' 

on voted working capital. 

“ Besides these delays in the 
settlement of claims, invoices 




in danger of 





ottish Secretary, told a Finan- 
il Times conference on finance 
d industry yesterday that 
e Government's devolution 
sasures could lead to Scotland 
coming the most over-governed 
untry in the world. 

On Government estimates the 
?embly would cost £12m a year 
d employ at least 1,000 extra 
til servants. It would add 
eatly to delays in effective 

"Should there be the addi- 
inai problem of a Scottish 
cretary of State and the 
serably Ministers belonging to 
fferent and competing political 
rties, r believe the problem 
uld be greater. 

" With a European Parliament 
d Westminster sharing 
iFpreignty with tbe Scottish 
sembly, allied to our two-tiered 
:al government system, there 
a dear danger of Scotland 
coming the most over- 
verned country in the world." 
Mr. Gordon Wilson, a Scottish 
itional Parly spokesman on 
volution, said that tbe 
iembly was only the first and 
new hat faltering step towards 
attish government 
4 It is only a matter of time 
fore the assembly reaches out 
r financial and economic 
wers. History teaches us that 
Utical power without fiscal 

power is unstable. The execu- 
tive and legislative responsibility 
of the assembly will be 
enhanced by the right to finance 
its own expenditure. 

“In essence, whatever is 
spelled out. tbe Scotland Bill 
creates an executive authority 
which will be responsible and 
responsive to a new and 
ambitious Scottish political struc- 

The history 

Defending devolution measures, 
Mr. John Smith, Minister of 
State at the Privy Council office, 
said tbat we had become 
dangerously complacent about 

Government institutions. Con- 

stitutional change bad to come 
to respond to demand for 
administrative decentralisation. 

"The time has arrived not to 
place -extra burdens on our 
organs of government but to 
make changes in them." 

The UK would be 

strengthened “ by securing its 
future in a recognition of its 
diversity as well as its under- 
lying and profound sense OF 

Too much caution had been 
shown over devolution. The 

UK was highly centralised and 
that trend had Increased over 
the recent past. 

More recently, pressures for a 

spreading of powers away from 
the centre had been felt 

Two extremes had been put 
forward: independence and rhe 
maintenance of the status quo. 

History had shown that the 

Scots wanted to retain the union 
since it was made in 1707 and 
that it - wanted to keep its old 
institutions and develop new 
ones by which it could handle 
more of its own affairs. 

Change was necessary but 
wilbfn well-defined boundaries. 
The union had to be preserved. 
The UK Parliament must remain 
sovereign, Scotland and Wales 

should have control over those 
matters where control did not 
.endanger the unity of the 
country and there should be a 
“ special respect for the national 
consciousness of the component 
countries within the union." 

The Government had thus 
proposed a balance of respon- 
sibilities between the Scottish 
assembly and Parliament. 
Powers of government in health, 
education local government Jand 
use, roads and transport infra- 
structure would be devolved. 

But, major industrial strategy 
remained in the bands of the 
UK Government, as did regional 
and industrial assistance. 

Besides this, "we shall con- 
tinue to regulate the framework 
of trade and ensure that no new 
or artificial barriers are erected 
to infringe on our own long- 

internal common 




Prof. D. C. AlacKay, h|ad of 
the economics department at 
Heriot Watt University, believed 
the assembly should given 
revenue-raising powersj since 
that would encourage financial 
responsibility. Since it iras not 
being given such powers, the 
current assessment of expendi- 
ture— on the basis of an estimate 
of needs by ihe assembly— 

should be modified. 

It was important 
bitter fights over 
resources and. thus, anfcbjective 
system of determine e funds 
should be arrived at 1 iis could 
be based first nn population 
movement, second, op demo- 
graphic profile and -third on 
relative income. 

Mr. James Milne, • general 
secretary of the Scottish Trade 
Union Congress, said: “ The 
tragedy of our present position 
is that in our efforts to deal 
with inflation we have com- 
pounded the present low levels 
of economic activity and have 
made our present employment 
position and our relative 
standard or living worse." 

Scotland's problem was part 
of the general crisis of Jhe 
western industrial countries; 
unemployment in the OECD 
countries was running at nearly 
17m. The UK problem was 

exacerbated by a reluctance to 
invest in domestic industries. 

Tbe union movement believed 
tbat there was no point in bleat- 
ing about imports if more 
resources were not devoted to 
industrial modernisation. 

Besides calling for more in- 
vestment by the public and 

private sectors, Mr. Milne 
advocated a shorter, working 
week, a reduction in the working 
year and earlier netti-emeut. 
Overtime should be cut. 

Hr. John Davidson, acting 
general manager, medium/light 
vehicle division. Ley land 
Vehicles. said governments 
through the National Enterprise 
Board did not give Leyland 
merits and their ability to per- 
form as generators of cash. • 

The future. 

" Between them, they will top 
£ 200 m in sales -this year, of 
which batf will be to export 
markets, and employ over 9,000 
people, making Leyland the 
third largest employer in Scot- 

Conditions had to be favour- 
able to the small and medium 
company it Scotland was to have 
any kind of economic future, said 
Mr. Lewis Robertson, chief 
executive- of the Scottish 
Development Agency. 

There were 600 to 700 medium- 
sized companies — between 100 to 
investment money but lent it 
with interest. The Scottish Lev- 
land plants at Bathgate and 
Glasgow stood or fell on their 
1.000 employees— and about 6,000 
small ones, employing less than 
100 staff. 

The Government could assist 
.these concerns by granting them 
a breathing space from legisla- 
tion and by proposing wise, long- 
term policies for oil revenue. 

There was no crucial overall 
shortage of finance but there was 
an equity gap. Equity was 
urgently needed because of high 
Inflation, high interest rates, high 
income and capital transfer 

Lord Weir, chairman of the 
Weir engineering group, said that 
it was necessary to establish 
whether Scottish industry was 
serving those world markets In 
which there would "be growth. 

The opportunity to- radically 
restructure the traditional "indus- 
tries of coal, steel, shipbuilding 
and heavy engineering bad been 
missed. However, the strategy 
or broadening the industrial base 
had been relatively successful. 

Mr. Gregor MacKenzie, Minister 
of State for Scotland, said that 
Scots unemployment was more 
in line with the UK generally, 
as were wage and investment 

German glass items 

fetch £124,750 


tion' of German glass to "rqach 
Sotheby's auction rooms in many 
years was sold yesterday for 
£124,750. . 

Tire 31 items were gathered 
by an -English collector In the 
first half of the last century and 
sold by his descendants. Only 
one minor lot was left unsold. 

The top' price was the £22,000 
paid by Hubner, . a German 
dealer, .for a documentary gilt 
and enamelled armorial stangen- 
glasr and cover made for Hans 
Praun .of Nuremberg in about 



159S. A companion . piece . went 
to the same buyer for £13,000. 

Hubner also paid £20,000 for 
a green tinted diamond engraved 
roemer! either ..Rhenish or 
Netherlandish — dating from the 
early 17th century. . . 

Zietz,- another German dealer, 
who has been active id the von 
Hirsch sale — which continued 
last night with a sale of Impres- 
sionist and modern paintings— 
paid £14,000 for a Tyrolese . bowl 
painted with birds and made at 
Innsbruck in about 15SQ. AH 
lots carry a 10 per cent buyer’s 

Also at Sotheby's, St Michael's - 
College. Tenbury Wells, sold its 
celebrated collection, of French 
classical music of tbe 17th and 

18th ; centuries;, far £120,000— 
almost doable the estimate. 

- Tbe collection, known as thi 
Toulouse^Philidor, was sold at 
one lot to" the French Biblio 
theqne Nation ale. It consists oi 
both , printed' and manuscript 
music,* -■ mainly?--; operas*- anc 
ballets, including *30 works bj 
Lully; It belonged to the college 
which is basically a. musk 
school, for more than a century 
■Sotheby’s held an auction lol 
English and Continental, minia- 
tures too which" total red £105*829 
Lavendar, a London dealer, 
paid £12,000 for a miniatiure of 
a lady of the court by ^Nicholas 
Hilliard, painted- about 1590. 

A pair,of miniatures of Jflfr. 

Mrs. Ludbey by Samuel She!_., 
sold for £3,200, while . one-ibf 
General Junot, by. Jean -Baptists 
Isabey. fetched £3,000. * .; * _ - 

At Christie’s, a: Siemia^Jated 
aibarellq of 1501 . painted ' by 
maestro Benedetto with a .por- 
trait *of . ,a Moor -in;* a roundel 
realised £14,000.' Xi wa&iwugb ! by '* 
Cynl Humphris, -the- -London . 
dealer. In a sale- of Continental ■ 
pottery ■ arid .. Italian ^inaiftica : 
which made £107;83S. ' . > 
.Reichert, a. German" dealer, 
paid £13,500 for ,a '.pair of 
Brussels faience ’ .■partridg- 
tureens and covers, , circa 1760, ; 

A documentary - Hamburs 
faience blue, ^nd/xrblte^. rococo 
tea eaddy and cover. by. Johann 
Otto Leffel Bia<fo'-H£Q0. H was 
bought, on behalf of a North 
German museum. ^ .. 

A Gabbio tqndino, circa 1527 
riso went tcf-Hunrphris for £3,800 

r. Coni 



* - - .. 

es. Tuesday June 27 I 978 

kpu'J t> u 



Banking to seek a number of 

opporturtties to serve 
by fringe benefits which include a 
loan scheme, and free 

iking fe not essential provided 
ive passed the Institute of Bankers' 

providing cxl» salary progression 

Managing Director, 

0 Grosvenor Road, 

-J^lrdclatk io be/ormrrlcd. 

'&ope addressed to the security 

— • . ■ - 1 

of Companies 

■ . - . ... . . .. i 

Jonathan Wren • Banking Appointments 

exclusively. with the banking profc ssion 

SlSS"* «fc" r m ™» 7.TwowT- our m " cha "' ind 1 ■»»«■* 


(U.K. & OVERSEAS) to £10,000 ACCOUNTANT c. £7,000 





For further details, please telephone ROY -WEBB or KEN ANDERSON 


01-623 1266/7/8/9 


Whatever your 
career problems 
(or aspirations) 
you will ljenefit 
by telephoning 
for a cost-free 
meeting with a 
adviser of 



in Fjp >ili\r Kulu^ilion 
uvl CaniT A*l\ .iiu* ifm.hl 


33 Fitzroy Street, Wl 
Phone: 01-637 2208 
Pjri . •* Rur Je Bern :.'»X>9 
Fhwfu. iivrtl so 

Siit mi 

Employment Agency 
Sunday A usuvring Sen ice 


Management Centre 


Applications ire Invited (or Jic above 
post vnitiin (he Finance Group. The 
du (ic* Involve teaching on the post- 
graduate MBA progiinifnc and on the 
rapidly expanding undergraduate 
finance programme. A particular 
interest >n Financial Institutions on 
the financing o / multinational com- 
panies would be useful although not 
essential. Salary within range £3.660 

to £7,309 p.a. 

further portfcofers/opplicetlon forms 
( ro be recumed by 14 Ju'y) 
obtolnoble from: — 

The Registrar, 

Post Ref. MA/L/37/FT, 
University of Bradford, 

W. Yorkshire BD7 1DP. 

Informal enquiries to:— 

Prof. T. W. McRae. 
Bradford (0274) 42299. 


Worries over unemployme 
spread gloom more widely 


A "MUCH more gloomy view of A minority of the pessimists 
the future than at the lime of the blamed their lack of confidence 
April Budget is reflected in the on the possibility of an election; 
Financial Times's latest survey The fall in confidence was 
of consumer confidence. The particularly marked among pro- 
optimism exposed immediately fessioaal men although they 
after the Budget has been re- remain slightly more optimistic 
placed this month by a feeling about the future than men in 
that things axe getlins worse. blue-collar jobs. 

Moreover, in spile of the Because of the more cheerful 
recently reported rise in earn- views expressed earlier this year, 
ings, people are feeling slightly the six-month moving average 
worse off than in May. The indices of consumer confidence 
respondents were less enthusi- for all adults and for ABC1 men 
aslic about the advisability of is still showing a balance of 
buying consumer durables this optimists. However, the trend 
month than lasu while worries i s downhill, 
about unemployment increased. The unemployment index 

The survey, carried out each supports the gloomier view, 
month by the British Market Although most people inter- 
Research Bureau, is designed to viewed said unemployment 
find out how people feel about would stav at about ns present 
the future and their present level, 39 per cent said it would 
financial position. increase this month. That com- 

Of the consumers interviewed pares with S6 per cent last month 
immediately after the Budget, predicting a rise and 2S per cent 
optimists outweighed pessimists j n January, when confidence was 
by 1'- per cent. This month, at its peak for the vear. 
pessimists are in a majority of 
S per cent, the first time they 
have outnumbered the optimists 
since last July. AH age groups 
showed the fall and all social 
groups except working-class 

The feetfng that “things are 
getting worse” became more 
widespread, and. whereas infla- 
tion and the Government are 
blamed no more than before, 
other [actors, such as law and 
order and. immigration, are being 
cited as reasems for pessimism. 

marked among professional men. 
while certain regions, including 
the North-west and Yorkshire, 
remained depressed. 

Although tile "time to buy ” 
index fell this month, the six- 
month index shuwed little change 
for all adults, although It has 
niowd down Tor professional 

The other main question is 
whether people feel worse or 
better off than a year ago. In 
January. aTlcr a lung period in 
which those feeling worse off 
predominated, those feeling 
belter off took the lead. The 
figure fell again in February 

but recovered in May to -f3 per 

This month the respondents 
were equally divided. On balance. . 
women feel worse off and men 
berter off, especially manual 
workers. That suggests that 
husbands do not pass on a pro- 
portion of their wage increases 
to their wives. 

The fall in prosperity is par- 
ticularly marked among those 
aged over 55. People in the 
15-!n-35 age group are feeling 
mure -aflliivni than a year ago. 

A total (if 1.009 adults were 
interviewed between June S and 



The respondents are also asked 
each month whether they think 
now is a good time to buy 
consumer durables. This month, 
that index has fallen close to its 
November-December level. Those 
in favour of buying now still 
outnumber those against by 16 
per cent among all adults, but 
again that is a much lower figure 
than in January’. 

The decline was particularly 




“ ; 6-Booth moving averages ^ i ^ 

_ 1970 1971 1972 1973 1976 1975 1976 1977 '78 




is looking for 



of its dei eloping 


Prefer-! bi\ aged between 28 and 35. the candidate 
*i ; L - ■ should have obtained experience in ship finance with a 
“ recognized shipping bank and have established 

-; ” • . customer contacts in the sector. Fluency in English Is 1 17 
. v essential and a u orking knowledge of French would be 
: .i ■ - an advantage. 1 

The job oilers good career opportunities u iih’ auraclh e 

Applications, giving Tull details of qualifications and 
career to date, will be held in the strictest confidence 
and should be sent to Mr. Fl Pcrlcwiu, Banque de la 
\ Sueieie Financiere Europeenne - 20, rue dc la Paix, /S 
\ 75002 Paris. / 

W6W1R& Efedro5oroc36 dining rooms with 


extensive catering facilities 


• '• AH enquiries tothePrjsOmcer^ street, 

8«W (ext. 7I23>. ■ 

Mr. Chairman 

We have a challenging opportunity for a 
dynamic personality, about 45, who has a 
successful background in senior management 
and who- can deal with and negotiate at the 
very highest levels of business and industry. 

We are a successful, performance-oriented 
company and leaders in our business. What 
we have to offer, however, is not for social 
climbers or title-worshippers. 

If interested, please write to us, enclosing a 
curriculum vitae, salary requirements, photo, 
together with a letter about how your personal 
qualifications might be of value to us in dealing 
with large firms. 

‘ Write Box F1029, Financial Times, 10 Cannon 
Street, -E£4P 4BY. 




For fast expanding unquoted public company operating io 
a diversity of computer oriented activities both m the U.K. 
and overseas. 

The ideal candidate is a qualified accountant, early 30s with 
at least five years* experience in industry or commerce 
and well versed in management accounting techniques. The 
position reports directly to the chief executive of the group. 

Salary circa £9.000 plus car and usual fringe benefits. 
Replies, with curriculum vitae, to: — 

Maidment Posner Consultants 
. 78, Wimpolc Street, 

London, W.l. 

Reference CS4. 


[ Bemocratic and Popular Republic «i Algeria 

International invitation for Pre-seiectiou for 
the Project of Sanitation improvement 
of the Town of Algiers 

The Ministry of Hydraulic Engineering. Land Develop- 
ment and Protection of the Environment wishes to inform 
companies, member countries of the Banque Inter- 
nationale pour la Reconstruction et le Deveioppement 
(BIRD), and of Switzerland that they will undertake 
important works on the Ou?d El-Harrach reservoir in the 
Greater Algiers region for sanitation improvement. 

The work includes the construction of: 

—A main sewer of approximately 7 ferns fer used water 
and rainwater along the left bank of Oued El-Harracn. 
Ground. excavation of approximately 3S0,000 cu. in. and 
35,500 cn. m. of concrete are planned. 

— A purifying station for the treatment of domestic and 
Industrial waste waters for a population of approxi- 
mately 750.000. The maximum flow- of purified waters at 
the station will be approximately 4 cu. in. /see. 

The Algerian Government has obtained a loan from 
Banque Internationale pour la Reconstruction et ic 
Deveioppement for part of the financing of this work. 
The Ministry of Hydraulic Engineering, Land Develop- 
ment and Protection Of the Environment invites con- 
tractors in this field of activities to submit Iheir 
qualifications for the realisation of the tv.o works 
mentioned above. 

pre-selection files may be obtained from the Direc- 
tion de l’Hydraulique. de la Misc cn Vale'ur des Ter res 
et de la Protection de I'Envimnneriieni de la Wilaya 
d'Alger — linmeuble **La Pepinieru" — Tl.X. 3 Cinq- 
Maisons — El-Harrach — Algiers — ALGERIA, a.- from 
15th June, 197S. 

Interested companies should send their dossiers to the 
abovermentioned address by 31sl July. 197S at Inc latest. 

FT grocery index Animal feed 

Smallest rise for three months cartel ? ut 



THE COST of tbe Financial between 2p and 17] 
Times grocery basket rose by just the more expensi 
over 1 per cent this month. The taking the place o 
rise, which is the smallest for on the greengrocer 
three months, pushed tbe Index Since it was re 
— re-launched io March — up to new index makes 
104.18. adjustment for 

The increase was almost 
entirely due to the higher cost 
of fresh foods — prices of pro- 
cessed foods v/ere remarkable for 
their lack of change. Small 
increases in the bills for dairy 
produce and non -foods were off- 
set by falls in the prices of other 
groceries such as canned goods 
and bread and cereals. 

These price cuis are probably 
only temporary but they reflect 
the intensity of the price war 
among supermarkets. 

Against . this, the fruit and 
vegetable Bill rose by more than 
£20 this’ month. ' Although 
tomatoes and lettuces cost less 
than last month, most other vege- 
tables cost more. Cauliflowers 
were up anything between 5p and 
20p each while carrots were up 

between 2p and 17p a pound with 
the more expensive new ones 
taking the place of the old ones 
on the greengrocers’ shelves. 

Since it was re-launched, the 
new index makes some seasonal 
adjustment for dearer new 
potatoes coming into the shops. 

The meat bill rose by more 

than £3 this month. Most cuts, 
except stewing steak, cost a little 
more than last month but he 
increases were biggest on lamb. 

Copies of the list used by the 
25 FT shoppers are available 
from Miss Ingaret Eden, the 
Financial Times, Bracken House, 
Cannon Street, London, E.C.4. 

jUNE, 1978 





Dairy produce 



Sugar, te, coffee, soft drinks 



Bread, flour, cereals 



Preserves and dry groceries 



Sauces and pickles 



Canned goods 



Frozen goods 



Meat, bacon, etc. (fresh) 



Fruit and vegetables 









"*ex for June: 104.18. 

By Our Consumer Affairs 


DETAILS OF the common 
pricing agreement operated by 
the main suppliers of animal 
feed stuffs in this country were 
formally put on the Register of 
Restrictive Practices yesterday. 

The agreement, which has now 
been abandoned, came to light 
during the Price Commission's 
survey of the industry. Under it,- 
six out of the seven companies 
examined agreed to co-ordinate 
some aspects of Iheir pricing 

The Commission was scathing 
about the level of competition in 
the industry in general and con- 
cluded that ROCM-Silcnck was 
the price leader which other 
companies followed. 

Details of the collusive agree- 
ment formed by the Commission, 
which was strongly criticised by 
the industry for its report, have 
heen passed on to the Office of 
Fair Trading. 

Quarterly analysis of bank advances 

to UK residents by banks in the UK at May 17, 19/8; as Table 4 in the Bank of England Quarterly Bulletin 

London clearing banks 1978 Feb. 15 

May 17 

Scottish clearing banks 1978 Feb. 15 

May 17 

Sonliern Ireland banks 1978 Feb. 15 

May 17 

All banks 1978 Feb. 15 

May 17 

of which in sterling 1978 Feb. 15 

May 17 


in sicrling Nr. i « Fcb-‘78 

197S Feb./May 

in foreign currencies adjusted 
for exchange rate effccts§ . jNv.77/Feb.78 
1978 Feb./May 

London clearing banks 1978 Feb. 15 

May 17 

Sn’ttioh clearing banks 197S Feb. 15 

May 17 

X.- them Ireland banksj 197S Feb. 15 

May 17 

AJI banks 1978 Feb. 15 

May 17 

.•i which in sterling 1978 Feb. J3 

May 17 

Ch nge*: 

ii. sterling >Jv.*77 Feb.’iS 

197S Feb./ May 

i:: fnreisn currencies adjusiPd 
for exchange rate ellecl*S . Nv "77 ’Fcb.'7S 
1978 Feb./ May 

LontK'n clearing banks *... 1978 Feb. 15 

May 17 

Scotl'^h clearing banks 197S Feb. 15 

May 17 

North- -rn Ireland banks 1978 Feb. 15 

.May 17 

All banks 1978 Feb- 35 

May 17 

of which in sterling 1978 Feb. 15 

May 17 


in sti-rling \r.77 'Feb.'TS 

1978 Feb. /May 

in foreign currencies adjusted 

for ischange rate effects^ . Nv.'TT 'Feb.TS 
1978 Feb./ May 

London rieanng banks 197S Feb. 15 

May 17 

Scottish clearing banks 1978 Feb. 15 

May 17 

Norther;; Ireland banks! 1978 Feb. 15 

May 17 

All banks 1978 Feb. 15 

May 17 

of whicn in sterling 1978 Feb. 15 

May 17 


in clerling \V '77 Feb.'TS 

197S Feb.. Slay 

in frtieiLu 'Tirrenciex adjusted 
fur exchange rate effect . \'t .“77 Feb.’TS 
1978 Feb.,- .May 

of which 

in foreign 

Total |o sKrllni currencies 
16332 15,147 1.386 

17.177 15.560 1,617 

. 2,225 1.9-T5 290 

ZJ3S9 2,018 311 

539 S37 2 

553 552 2 

38.991 28.210 10.781 

40,845 23,444 11,401 




•T which 










Hire-porch asa 















+ 1,162 
+ 1,234 

+ 251 
- 57 
















Chemicals Metal engineering Shlp- 

and allied majiu- Electrical and metal building 
Industries facto re engineering goods t 

433 255 333 957 372 

475 218 333 939 394 

34 26 23 85 116 

35 22 21 96 120 

1.762 523 717 1.677 537 






+ 23 +49 

- 20 - 1 















+ 167 + 43 

- 150 +53 














- 3 +154 + 4+ 6+ 2 — +3+25 

+ 38 + 8 + 5 +13 +19 + 7 “1 - 5 



pro duct too 











or which 



h Forestry h 


I fUhtoy ou. 

























of which 


For house 







— +10 

+ 1 - 13 

of which 











Public utilities 

Transport and anil national Local 
communications government government 

Retail Other scientific and 
distribution distribution miscellaneous 

-66 - 5 

-178 —US 

.•Inrintlinc lending under ?p<cial schemes for domestic shipbuilding. JThe analysis provided by ftorihern Ireland banks differs slightly 
friTi i.rih-T bunk*. Chemical.- and allied industries are included indistinguiahably in “Other manufacturing': Metal manufacture. Elec- 
irical cl i ■.inhering. Shipbuilding and Vehicles in “Other engineering and metal goods'*: and Transport and communications in “Public 
utiliiics a nr! r^lionaj government:* §The figures exclude as far as possible the-effect of changes in exchange rates on the sterling value 
of sdtancc* in foreign currencies. 



‘ i 

" • = I ~\‘ : tv- ■ 

:• • ' ir: ^KnaucKti ; 




A cold 

THE MASSACRE of cisht 
missionaries and four of their 
children, including «i three-week- 
old ba'i.v, at a Rhodesia mission 
run by’ the Elim Pentecostal 
Church, dose to the airaBmbigue 
border, was an “appalling 
tragedy." Dr. David Owen, 
Foreign Secretary, said in the 
Commons yesterday. 

MPa on all Sides joined in 
expressing their revulsion at the 
atrocity. Mr. John Dai its 
shadow Foreign Secret ary. 
speaking of "this ultimate 
bestiality" and Liberal spok*s- 
man. Mr. Jeremj Thorpe, saying 
that the whole House shared the 
horror of what had been done. 

But there the unity ended. 

as Mr. Davies claimed tbit the 
British liovernnient. by cu'd- 
shoulderinq the Rhodesian 
internal settlement, was en- 
couraging tho.-e who 'ought 
power '* by the bayonet, the ctuo 
and the gun." 

Dr. Owen firmly defended the 
policy adopted by the British 
and I.T.S. Governments. “ Within 
the limits of our ability to bring 
about peaceful negotiation?, we 
are right to adopt the attitude 
we have done ever since the 
internal settlement was estab- 
lished — neither to condemn nor 
to endorse it” he declared. 

ha.-? her building no now fur 
five yeu.a." 

Dr. Owen added: •* Tiiis blest 
tragedy conSrcis the urgent 
need bring about by every 
avaiidoie means, round table 
ta Ik- i>* achieve a negotiated 
settlement which will bricu an 
end to the fighting. 

-■ V.';.* nave a joint Anglu-C-S. 
learn a • 'his moment i;i Salis- 
bury and l believe that vs are 
making progress towards 

our '■i'j'.-'.tivc of round taale 

■*ii i-- tor the leaders of all 
the par'ic- to resnond now in a 
iv a \ thiit measure.-* up to their 
merr.’d in- responsibility lo 
bring ;*i'U't a nan-rjciat. peace- 
ful and :n dependent Zimbabwe.'* 

F nr Opposition. .Mr. Dunes 
puked: "Cannot the shock of tins 
ultimate bestiality brin.g all 
concerned to their senses*.' 

merit v.';k established— -neither 
to condemn nor io endorse u." 
he added. 

For the Liberals Mr. Thorpe 
suggested that the tragedy might 
offer the opportunity Tor a major 
diplomatic initiative involving 
Mr. Callaghan, the U.S. President 
and the five Front-line African 
Presidents. This could aim or 
achieving a cease-fire as a vital 
prelude io further negotiations. 

Dr. Ou :n agreed that a cease- 
fire or reduction in the level nf 
violence would be of great 
benefit. Both the Prime Minister 
and the U.S. President very in 
fairly constant contact with the 


Dr. Owen said he was sure 
that the House would join in 
expressing the doeoe«t sympathy' 
for the families and friends of 
those murdered and our 
admiration for the Christian 
spirit and courage with which 
the Pentecostal Church had 
decided to stay on in Rhodesia. 

"The fact that those who have 
been murdered were solely con- 
cerned with working for pence 
and conciliation between the 
races is a horrific reminder of 
the dangers in Rhodesia today 
and of the escalating level of 
indiscriminate violence which 

- Dermic all their protesta- 
tions. cm there be - iny real 
doubt that the mounting loll of 
death a.i-I mufifatimi i< ihe 
resr-'mJU'iiNy of the Patriotic 
Front and none other - ' " 

By for-' is lc;uly eai/i-shouhhr- 
ine’ thc-ie involved in the 
internal settlement. the 
Government h-irt only encouraged 
those oh*’ "-ought power “ by the 
bayonet. >.::•? club, and the cun " 
Mr. Davies catted on Dr. Oven 
to offer “real support " to those 
who h^d agreed to reach a 
peaceful -I'tilemeiu, 

There '.'ere jeers and projects 
when Dr. Owen replied: “ What 
more can f, np do? '* Cutting i*ff 
ail link- vitb till th- harries 
ivouW gravely jeopardise our 
chancy*. he warned. 

“Within '.he limits of our 
ability i*< bring about peaceful 
r.egeUatior.s. we are right to 
adopt tbs ;U it udo we have done 
ever since the internal seltlc- 

fronMine Presidents. he added. 

Mr. Roderick MacFarquhar 
i Lab. Bel pen. said he had heard 
reports lhal the co-leader of the 
Patriotic Front. Mr. Hubert 
Mugabe was responsible fur the 
massacre and had said Iso was 
not prepared lo meet with other 
leader*, fur round-table talks. 

Dr. said that Mr. Mugabe, 
who had not denied his involve- 
ment in previous incidents, had 

specifically denied any responsi- 
bility fur ihc* mission massacre. 

“l" a:rr not aware thai he has 
changed his position on being 
prepared to enme to round-table 
lulks.” the Foreign Secretary 


There were furious Tory shouts 
of “Disgriiceiui" when Mr. 
Andrew Fauids (Lab. Warley E.) 
Claimed that Dr. Owen had 
hinted that the attack was not 
made by the Patriotic Front. 

Mr. Faulcis. persisting against 
a barrage of shouts from Tory 
M Ps. said: “.Some of us believe 
lhal this attack was not made 
by the Patriotic Front, hut. as 
has happened befnn*. by .iscnts 
of the Smith regime such as 
the Selous Scouts, for obvious 
and obscene propaganda pur- 
pose* against African liberation 

Dr. Owen denied making any 
hints. •'! have not implied or 

that a 

imputed any such thing. I ha*c 
□ut hinted at that. 1 ha*'-' said 
1 do not know. That b a factual 

“I think MPa would do well to 
mirror the example of the Elim 
Pentecostal Church which seems 
to have been able to ge: strength 
and succour from the situation 
in Rhodesia and, in looking for- 
ward. not backwards, -how that 
it can work toward* pejcc." 

Mr. Maurice Macmillan I*-- 
Fjrnham) said that so.i-c Tories 
had predicted events of tiiiS 
nature following the Cub- ns' 
arrival in Africa. 

Dr. Owen told him 
central objective u: 
foreign policy must be to avoid 
the spreading of Cuban involve- 
ment in Africa. To .r-Md the 
search for a genuine solution 

would hasten., or .n least 

increase, the risk of that happen- 

Mr. Puler Blakcr fC. F* avkpool 
Si said that by appv.ring bi 
“lean against" the internal settle- 
ment in favour of the Patriotic 
Front. Dr. Owen nusht en- 
courage Ihc latter to think their 

host hope rj{ success a j io con- 
tinue to fight it out. 

Dr. Owen denied he had given 
Ur* impression. 

Mr. Stan Newcns I Lr. ' Harlu'.v'i 
said it >'as far more like.y lheru 
would be mo massacres of botii 
blacks and white until - settle- 
ment was reached which recog- 
nised the legitimate rights of the 
Patriotic Front. 

LaLer. a call for an emergency 
debate was turned down hy the 
Speaker. Mr. George Thomas. 

Mr. Ronald Belt (C Esacons- 
field) warned to deljaic “the 
duty or Ministers to do Im- 
mediately what is in their power 
to prevent the certain repetition 
of the murderous assault* on 
British subjects by versons 
operating from neighbouring ter- 
ritories " with which Britain 
maintains dipJomatic relation?." 




A WARNING was given last 
night by Mr. Edmund Dell. 
Trade Secretary, that Japan’s 
latest offer to reduce her tariffs 
as part of the current world 
mulilateral trade talks was 
“ totally unacceptable." 

Speaking in the Commons, he 
indicated that, as far as he was 
concerned, the Japanese offer 
should he rejected by the EEC 

He was also critical nf the 
Americans suggesting that in 
some areas, their tariff reduc- 
tions did not pu fir enough to 
meet the needs of Britain and 
other members of the European 

Mr. Dells remarks came in h 
debate on trade shortly before 
he was due to depart for Luxem- 
bourg for a further stage of the 
multilateral trade talks today 
and tomorrow. 

He told MPs that the move- 
ment towards a more open wot Id 
trading system wus now in peril 
as a result uf a lack of growth 
and high levels of unemploy- 
ment. It was also endangered 
by the continuing Japanese 
surplus, which made it mure 
difficult for thf* other countries 
to spcormuo’hie the deficits 
which resulted from the OFEC 

The Minister understood the 
feelings of insecurity in Japan, 
which led to iheir iiig trading 
surplus. “ Eat they must reduce 
this surplus l>y opvning up their 
markets by imaurling more 
manufactured goods and not just 
filling their tanks with OFEC od. 

“ One thing the Japanese 
Government rnr Id tin in improve 
the aunosphert* of ihc multi- 
lateral trade negotiations is to 
make a much bettor tariff offer 
than they have so far done. 

“The tariff offer they have 
made is totally unacceptable. If 
it » a left on the table, as it is. 
then I believe the EEC will have 
lo react accordingly.” 

In the face of scepticism from 
the Tory opposition. Mr. Dell 
stressed that he would like to 
see better opportunities for 
Japanese investment in Britain. 

“But l wish that the possi- 
bilities or inward investment in 
Japan were as open as the possi- 
bilities of inward investment in 
this country” he added. 

In addition, he saw dangers 
from a rise in protectionist senti- 
ment in the U.S.. and pointed out 
that America still had a large 
surplus with the European 

The position was stilt rather 
unsatisfactory. In the current 
negotiations, we were aiming not 
just for a reduction in tariffs 
over an eight-year period, but 

for harmonisation of tariffs. 

The characteristic the 

American tariff system h;*.i been 
a series of high peaks. Y«t only 
by harmonisation could real 
reciprocal benefits he achieved. 

“I cannot say that 'Jie U.S. 
offer, from this point of view, is 
a very satisfactory ’ one,” he told 
Ibe House. 

On wool and textiles, the 
American proposal vent nowhere 
near meeting the requirements. 
In this field, we had not so far 
received Ihe response for which 
vc had hoped by way of 

There was still a long way to 
so on all these Issues during the 
multilateral talks. “We accept 
fhat it is a vital necessity that 
the negotiations be successful. 

“it would be a bitter blow to 
the whole world trading system, 
if we failed to come lo a success- 
ful conclusion,’* he said. 

UR. DAVID OWEN. Foreign 
Secretary, stood firmly by his 
Rhodesia policy under an in- 
tense and emotional attack 
from. Conservative MPs lo the 
Commons yesterday. 

The Rhodesian massacre had 
confirmed the urgent need -to 
bring about the round table 
talks that would achieve a nego- 
tiated settlement and end the 
fighting, he said. A joint Anglo- 

l : jj. i cam in Salisbury was now 

making some progress towards 
that objective. 

“It is for the leaders of alt 
the parties to respond now in a 
way (hal measures up to their 
overriding responsibility to 
bring about a non-raciaL peace- 
ful and independent Zimbabwe. 

The callous murder of the 
missionaries had been a horrific 
reminder of the dangerous 
violence that bad been mount- 
ing Tor tbe past five years. Dr 
Owen said. 

But far the next 50 minutes, 
the Foreign Secretary faced a 
j-avagely critical response from 
the Tory benches. Mr. John 
Davies, the party's foreign 

affairs spokesman, said the 

shock of this “ ultimate bestial- 
ity *’ should bring everyone to 
their senses. 

From the Government it 
should prompt “real support” 
for (he internal settlement, he 
snapped. Its persistent cold- 
shouldering of the move had 
encouraged those who sought 
power by the bayonet, ctnb and 

** tVhat more can one do ? ” 
Dr. Ou cn asked patiently, 
amid angry Tory' jeers. 

He bad neither condemned 
nur endorsed the internal 
settlement bnt had done his 
utmost to widen the areas of 
agreement. The chances of 
peace would be gravely 
Jeopardised if all links with 
all the parlies were to be cut 

The Conservatives further 

incensed by some Labour 
suggestions that tbe massacre 
might have been carried ont 
by Rhodesian security forces, 
massed for ihe assault. 

Sir John Eden (G. Bourne- 
mouth W) said the Foreign 
Secretary had implied that it 
was wrong (o murdtfr mis- 
sionaries bnt that U would 
have been legitimate to kill 
anyone involved In tbe inter- 
nal settlement. 4 * Exercise 
some humility,” he barked. 

“ 1 suggest yon examine 
your, conscience and F will* 
examine mine.” the Foreign 
Secretary retorted. He had 
not dedicated himself as a 
doctor to qualify any life as 
legitimate or illegitimate, he 

And as the Opposition MPs 
renewed their demands for a 
change of policy, he doggedly 
insisted: ” 1 do not think there 
is any alternative to tbe one 
I have put before the Bouse.” 

Britain would have lost all 
Inllnence if It had given un- 
conditional support to the 
internal settlement, he said. It 
was vital lo continue the 
efforts towards round-table 
talks, he reiterated. 

MPs chronicle high 

cost of navy tug 



SPECIAL " enterprise zones' 
should be set up in sleeted in- 
dustrial regions of the UK sii 
that couipani*’® could make 
profits and create jobs with as 
much Freedom as possible. Sir 
Ooffrcy Howe, shadow Chan- 
cellor. proposed yesterday. 

in wbat he stressed was a 
personal initiative Sir Geoffrey 
argued that fresh policies in- 
volving fewer restrictions and 
less Stale interference could bn 
developed so that iheir full 
potential could be tested. 

in particular, he proposed five 
key elements, which would have 
to he maintained for a stated 
and substantial number of years, 
so lhal entrepreneurs would ■»<? 
attracted to ibe zones. These 

\ — Planning control nf any- 
detailed kind would cease lo 
apply. Any building .that com- 
plied with very basic anti- 
pollution, hcaiili and safely 
standards and was not over a 
.stated maximum height would 
be' permissible. Industrial 
development •.•'.•rtificales would 
not be required. 

2 — The Community Land Act 
would be pm effectively into 
reverse. Publh: authorities 
which owned la ml would be re- 
quired within ;< specified time 
to dispose of it to private bidders 
hy auction in I Ik* open market. 
New developments in the area 
would be five from rent control. 

3 — Entrepreneurs who moved 
in would be granted exemption 
from development land lax and 

Pressure group wants 

Secrets Act replaced 


E STEADILY growing 
ssure group fighting for a 
ical overhaul of Britain's 
;ial secrets legislation _ last 
tic issued its own " White 
ier” on the subject, which 
s considerably further than 
real proposals promised by 
Government next month, 
he pampbleL published by 
Freedom of Information 
apaign. claiming lo represent 
MPs of all parties, as well 
trade unions and other enm- 
lity groups, demands a full- 
e Freedom of Information 
, which would place ihe onus 
arely on civil servants lo 
tify the withholding of 

he proposals, and the exemp- 
ts permitted under them, 
dd replace the existing 
rial Secrets Act in its entirety. 

: Government intends no more 
n suggestions For the replace- 
it of Section Two of the Act. 
so-called “catch-air* provision 
ich makes disclosure nf all 
rial information an offence, 
iabinei Ministers are still 
mising proposals heforo Par- 
nenl breaks up from fhe 
rent session. Bui ine delay 
:e Mr, Merlyn Rees, Home 

Secrelary, announced in Novem- 
ber, 1978. the Government’s plan 
to issue a While Paper already 
Tops 19 months, and there is now 
a large degree of scepticism at 

Last night. 3fr. Kenneth War- 
ren. Tory MP for Hastings and 
a leader of the campaign, accused 
civil servants of stalling by 

“ deliberately confusing " reform 

of Section Two with ihe wider 
issue of a Freedom or Informa- 
tion Act along American or 
Scandinavian lines. 

And Mr. Arthur Lewis. Labour 
MP for Newham North West, 
stated that the Civil Service had 
displayed “ stifing arrogance.’* 
Britain, he declared, was the 
most secretive country in 
western Europe. 

The document, entitled "a 
Model While Paper on Freedom 
uf Inforniaiion " says great 
stress on easo of access, as well 
a» on tlie broad right of the 
public to official information. 
Exemption. olh**r than on the 
grounds of privacy would he 
liuuiccl io Cabinet minutes, 
military, police and internal 
security information, and various 
categories of commercial and 
personal data. 

Perhaps exemption from rates. 
id whole or in part. 

4. — Businesses would be given 
a guarantee that tax laws affect- 
ing investment and depreciation 
would not be changed to Iheir 
disadvantage and they would also 
be given an undertaking they 
would not be subject to nationali- 
sation. Nn Government grams 
or subsidies would be payable 
to any enterprise within the 

a. — Certain other legal obliga- 
nons or ihreais should be 
declared not to operate, includ- 
ing price control and pay policy. 
In addition other measures such 
as certain provisions of employ- 
ment protection should be stated 
not to apply. 

Test market areas in places 
like east London. Clydeside, 
Merseyside and the West Mid- 
lands where substantial ureas of 
land could bo designated lo be 
developed with as much freedom 
as possible to make profits and 

creaie more jobs. 

Sir Geoffrey's speech, made to 
the Bntv Gruup in cast London, 
will be seen as an attempt by 
the shadow Chancellor to 
influence Tory party thinking in 
the key period when ihe mani- 
festo for »he next election is 
being prepared. 

More generally, his speech 
concentrated on the necessity nf 
endin'* rcainciive Government 
policies and adopting policies 
that would give much greater 
incentive. Top of hi> list was 

a recasting of Inc taxation 

system . 

THE SORRY saga uF the HM5 
Wakeful, an ill fated Foray by 
the Royal Nuv> into the second 
hand shipping market, has been 
embarrassingly chronicled in 
the latest report from the 
powerful Public Accounts Cnm- 
niities of MPs at Westminster. 

The all party committee, which 
acr< as Parliament's watchdog on 
spending by government depart- 
ments. a ten rake.- rhn Ministry 
of Defence to tn-k fur failing 
to chase up money owed hy 
foreign govern me ms for antis 
purchases and personnel tj-ainins. 

Such unpaid mils exceeded 
£S7nt hv December 1976. of 
which ri-tni had hi-#»n outsiiinfi- 
ina for more than nine nmnihs 

KMS Wakeful. .. f “Wasteful" 
as it hecanie known, was a 493 
tonne tug in Swedish ownership. 
It was bought b** dip Navy .in 
1974 Tnr ju«f »nd-r £700/100. fnr 
secret duties in the Clyde area 
involving nuclear submarines 
and surveillance of offshore 
activities by the Soviet fleet 

However. af»e r receiving a 

clean hill of heahn at the Ante 
uf purchase, ihe vessel was 
plagued by faults. !n 197B. It 
required a full refit, onlv for one 
of ifs pngines fail a* it 

returned m sorrv- in January 
TOn. Funlier repairs laid up 
ihc >h in limit earl-. Jhi« veer. 

By Februarv lfiTjj. the- com- 
ma® p notes, ihe bill fur rectify- 
ing flaws and nutinizinints HJ1S 
Wakeful toiaileri rn- m iivtr and 
above its original ettet ' The 
price of a new n:g at th|t time 
would have heen ClSm. 

The report comments! drily: 


“We find it difficult lo accept 
that ihe Ministry of Defence 
got value for the £3.4m it has 
spent su far on this ship. The 
Ministry aF Defence expects to 
spend an average of I2S0.000 a 
year on future reflis and over 
£200,000 on running costs.” 

This last figure alone is 10 
times that quoted to the 
Treasury when authority for the 
purchase was sought. 

Mr. Edward du Cann. Tory MP 
for Taunton and PAC. chairman, 
declared last night that it was 
intolerable at a time when 
defence spending was under 
pressure that taxpayers should 
nor receive value for money. 
The Defence Ministry, he added, 
was not the only department to 
which such rebukes applied. 

“Under these circumstances, 
departments should exercise the 
utmost care and scrupulousness 
in llic expenditure of public 
money." There should be care- 
ful monitoring and a system OF 
priorities, he said. 

The Ministry has also promised 
the MPs it will tighten up 
its procedure for ensuring that 
hills are paid promptly, it plans 
to instal a computerised invoice 
control system to monitor claims. 
This, it is hoped, will reduce 
losses on the imprest on working 
capital voted by Parliament. 

Tlie committee says that, fnr 
ihe economy to gain the maxi- 
mum benefit from defence 
sales, overheads should be kept 
down. “Staff concerned should 
adopt a fully commercial 
approach to these transactions 
right from the lime an order is 
accepted until the customer pays 
the final bill." 

Benn rejects gas price claims 



that gas prices, have been 
manipulated by tlie Government 
for political reasons were denied 
by Mr. Anihuiiy Wedgwood Benn, 
Energy Secretary, in the Com- 
mons yesterday. 

Mr. .Michael McNair- Wilson 
<C Newbury i claimed that gas 
prices for domestic consumers 

were being held down ‘'for elec- 
(oral reasons." v.hile industrial 
consumers bud io bear Sharp 

After Mr. Be nr. rejected this 
charge as "completely wrong." 
Mr. Nick Budgi.-n fC. Wolver- 
hampton SWi accused the 
Minister of interfering with S“S 
price?— in ord^r to give con- 
tinuity to the ciai-mining indus- 

There, was laughter when the 
Minister" urged Mr. McNair- 
WiUon and Mr. Budgen to get 
together. One had accused him 
of keeping gas prices down fur 
electoral purposes, while the 
other had accused him of inflating 
them to protect the miners. 

This, he said, reflecied the 
absence nf clear-thinkinq on 
energy policy in. the Conservative 


' -If—- ^ ^ 

halted, with 
10,000 laid 


ALL ROVER production wftT;*tgwards at Leyjand^ U nc a& fr e 
come to a vhtual standstill today vbas^and truck fcrctories.yesteruay 
making about 10,000 workers htftf imade" plans to r 

at ten plants. 

BL Cars said last night 
it was forced to take the > 

Wanes SM Jrnncnfw*- iMmf» '#VH ek MIOflrE *flr-lu8 CeUSSTC VSQte- fuibo 

.. -/edaffdence in th^amtpAiL^s:. jjjr SftiK. -* 

because SO transport* driv ars -atf Seek support ~ 

the Solihull 

refused to end" xheiTslrike".uOw/^ewat'ds In- •• .. Medusa?, 
into its third week. 

..Wirnbmw— iher.' 


tije ; same eojornlttfife-isueii for 

The men, who walked -five'pWfil- 

■oiest at the «cking-of- a in Xeyland have 

jwartL are nor due to red by cammerit^W&: 

'Ain unUl Thursday. - r- by/;. MrA . - MSdiafel 1 _ , 

The dispute, which has hit^&Jwardes B L ebaiianm. ' . ^ -• - -'‘ j ' Tbe stop ste^va rtfe >rft- utri i 
pradoetion of Rover c i‘ a j rn 

Barron Rnoiirv and T anff - -w» n ^ ' 

-^c, — , fl'C 

[vi f • ' "... $ ■ 


^tten Tij^rthis Tyeefc - 


anifethaf^^tfes rsntt^-KiMO 

JC L vpriwe«^>w«ai'e& :was.-jria'de ■ - ' 

lent,’. * "■ - *. ..- - ^ ih« 

. J - _ . . ... 

home and overseas but they are a i so fear thatvthe .badi 

of high value. Lost outputs 0 f parts could 
showroom prices Is put «t*Mj£*g5f ( j ' 

a day ' ■ * ' ' . ^reduce 

the works to : assembly 

past -two ^ay : 

wilt be affected at BL Carsi^P t o“give seven days^ notlce of 
factories supplying co m ponent%.' s trike action because, jhe com-, 
for Rovers. *. fvjutay had not itnproved a pay 

A meeting: of.' local 1 shdp^^'fifer. .... f.j 

Council v^ite-collar 



PAY TALKS covering 330jB8d^f Tt n °t certain yesterday 
■local authority M'hite- collar -twhetber the executive would 
staff, the only major group stUT T-.incet again before the full;, 
to settle under Phase Threci :'. meeting of the national . Joint 
were adjourned yesterday. '’council on July 12. The union’s 
The discussions involved:* 1 ^ .local government conference 
representatives of tbe-'V" due lo start on Friday.. - .* 

employers and the National } ' The union has said it >’HI 
and Local Government Officers ^accept nothing less than full 
Association on the executive of /consolidation of both pay sup-' 
the local government. national- ..'irplements and an. inerease-^of. IQ- 
Joint council. ..T T .^:Per cent on consoDdaetd rates. 

seillemerit;^^ - 

** ! "i ’ ' « 

Managers -association 
backs top irises 

' Actid^wMttdlvaiy : in . : &jSfe~rerit' 
plaritisr. ;bt|t ^p^jr^entatives-^f 
some; ■; TOO- t'$hi8r}< workecs * : at ■ 
Winningitm •\r: m?d i : .;r.Vr»sfor<i. 
Chesblrei 'aiid ' Instock, Greater 
]Mari<icater,;\j%i;; agre^ , on a 
programme- of oi^ay 'Stoppages 
Trom -friestT Sunday ,yAri/difertinie 
ban : was • also - .' planned •_ in 
HuddkHfieTdlL^!:,* v‘:-‘ :.-V- > ' '*;■:• . 
-.** ‘Bnidh . negotiatbrs at 'national 
,le*er iiavt^ yetr to- respond to an 
o$Br $: foTt3ught ago, -saJtL to . 
amount to idsf 'under Iff per cent 
with consolidation, rif ; tbe. phase . sjjpplemenf into basic 
rates but not the £ 64-week phase 
one rise , ~ **. 

A final decision Awaits the out- 
come of <a Scries \bf= weetipRs 
reporting babk to individual 
sections among* the weekly paid 
workforce. T ; • ' • . 

.The shop stewards’ combine 
meahwhite^. -^ias gut' -special ' 
emphasis On the need for better 
shift distorbaace- 'sltowances. 
which, it sa^, have not changed • 
Since -^i976.-5t ■alsfr' wants a 33- 
hofurveek. vi 1 4 “ . * 



[trade UNION support for the lat a thne^hen to® Government 

big pay rises proposed by. t^e ' Is peeking ' -a^. general level of 
Boyle review body for pay settlement +aany times lower. 
nationalised industry /Cbairtfien However. Mr: Dyoris said that 
and board members Am given .no group bad been, treated “so 
jesterday by Mr. John Lyons, shamefully by the Government" 
general secretary of the as the nationalised^ Industry 
Engineers and Managers Associa- chairmen and board vn embers, 
tion. In this policy of discrimination 

j n ^,-g the Government had, V said. 

«5S2S the’tUC SHUT? rJc“ P n ?Va« 

had “proved _ incapable of u^nk- 


Bidto effil 
agreerteW v 


Used Industrj' had been “placed 
in a strait-jacket" owing to 
restraints on tbe pay of chair- 
men. deputy chairmen and board 
members. ' 

We now have the ludicrous 
situation that people eligible for 

ing constructively about tbe pay 
of anyone who earns more than 
the average wage." \ 

Whatever to Je the Government 
played - in pay determination 
after Phase Three expired next 

appointment for example, to mouthy tbe-over-ridlng need vras 
deputy chairman of an area elec- to restore reasonable differen- 

iricity board are obliged to 
accept a cut in salary in order 
to end up with the privilege of 
being paid less well than Id or 
17 subordinate staff.” 

The broad reaction of union 
leaders to the review body’s 
recommended 70 per cent 
increases in top salaries is that 
they should not be implemented 

tials for skilled and responsible 

“ The country cannot afford to- 
go on neglecting the people an 
whom its industrial regeneration 
so crucially depends. Any pay 
policy, open or. covert, wbich 
ignores this central fact will run 
into considerable trouble next 
year" said Mr. Lyons. 

negtmatOrs- J ^'were'5- ^esrtori 
emoo.wered ' , to ‘withdiWTri 
‘Their a na0oi^AA|BMA{it^-'^ 
the Newspaper. ^biishers’ Aiso^ 
ciarion. : v.i f . 1 

The . National ; .Union of 
Journalists' national -newspapers' 
and agencies’ industrial council - 
authorised negotiators ,to give 
the required six months notice of 
i withdrawal firbtn • the-; Ttational - 
agreemenU -Thls could take place 
at a me^ingTietWeeriithe.NPACCT 
and union ‘oiTFfiafiyi Ji 
Meanwhiiei.r ; T the.^ 7 ■' NFAiA. te! 
refusing To concurife- any office i 
ftwage agreements . ..unless the- 
nptice; .’ of ;Ljri£W^awaJ - is . 
aBahdonedl'j '/ . •*' 

In recent . years, -nearly all 
Fleet Street wagE rates have 
been rdeterrained at Office leveL 
The NPA has been seeking to>* 
restore agreed minimum rates to 
the national agreement but this ><-, 
is bain? resisted by the union. 

Scottish agency joins fight 
to save Singer jobs 

.Liverpool docks: 

redundancy plan 


THE SCOTTISH Development 
Agency may be called upon to 
set up a joint venture with 
Singer, the U.S. multinational, 
in the fight to save some ur 
the -.800 jobs threatened at 
Clydebank, the loss-making sew- 
ing machine plant near Glasgow. 

The agency, Scotland's equiva- 
lent nr the National Enterprise 
Board, said it -is willing to help 
the unions to prepare an alterna- 
tive industrial strategy to fight 
the cuts. It may be asked to 
buy the Clydebank factory out- 

Last night the agency said its 
maximum equity investment 
since it was set up at the end 

of 1975 was only £2m. However, 
it would consider investing more 
at Clydebank if Singer adopted 
a positive attitude. 

Singer appeared to rule out 
n joint venture on the ground 
that it would 'save neither costs 
in the short term nor jobs iii 
the long term. 

The Clydebank work force is 
holding a mass' meeting Loday- 
irj discuss the cuts. The indus- 
trial sewing machine division, is 
to be shut iu ah £Sm. scheme to 
alter , the factory. 

The Scottish Nationalist Party 
has sent a telegram to Mr. 
Callaghan in Washington, 
reminding him of his “commit- 
ment to save jobs at Singer." ■ 

LIVERPOOL Dock Labour Board, 
seeking 315 rddundandes from 
1 the labour force, is to write to 
all its 500 men born before 
December 31, 1919. to see 

whether th^y would be prepared 
to accept voluntary severance. 

It. is expected to take , about, 
a- month to sift through the 
replies and ■ the position will 
ithen be reviewed- 
i The decision was taken at a 
1 two-hour meeting yesterday nf 
;the Board,. which is made up of 
I the port employ ers and the 
Transport atid General -‘Workers’ 
! Union, which* has given reluc- 
tant approval. '• ■ - - 

i Men with' *3.5 years’ - service 
j would, receive uP to 77,250. The 
! decline in world shipping and 
i cargo handling has ‘ meant that 
■as many as 1,200 ineri have been 
! sent borne; do fall-back -pay. Last 
year this cost the Kersey Docks 
and 'Harbour. 1 ' Cbmpany, which 
employs, more than 60 per. cent 
of the force, £l&jf. ' 


^Ql S6 

to 4 &C 

Closed shop dismissal 
not unfair— tribunal 

A FACTORY worker, expelled 

from his union and then dis- 
missed from his job because a 
closed shop existed at the factory, 
has no redress against the 
employers — even though his 
expulsion from the union was 
later held to be invalid. 

Mr.. Justice Kiincr Brown, 
chairman of the appeal tribunal, 
said -yesterday: “No doubt many 
men would have been satisfied 
with this great victory. But not 
Mr. Lakhani ”. 

The Employment Appeal 
Tribunal gave this ruling yester- 
day in the case of Mr. Pnbhat 
Lakhani. 37. a labourer, of 
Southall. Middlesex. 

He took his farmer employers. 
Hoover, of Perivale, Greenford. 
to an . industrial tribunal, claim- 
ing. unfair dismissal and seeking 
reinstatement and compensation. 
He lost. 

A High Court judge Iasi year 
ruled thai the General and 
Municipal Workers Union had 
exceeded its powers in expelling 
Mr. Lakhani. The Judge hi>Iri 
i bat he was still h member nod 
awarded him TJ.0Q0 damages 
against the union. 

The appeal tribunal upheld 
that : .decislon and dismissed „ his 
appeal. : H ruled that "the 
employers, having been told by 
a union official that Mr. Lakhanr 
was oo longer in the union, had 
acted 'in the belief at the time 
nf the sacking that he. was. not, a 
union member. 

Because a closed shop existed 
at the -factory, -the dismissal -was 
fair under the‘ Trade Union and 
Labour Relations '-Act 
_ Ifir. LakHani, described by the 
judge as a “ perfectly satisfactory 
workman,” • had >; been, expelled 
from the union after, withholding 
his dues over.-:,a_griearance-,bB. 
wanted the uniim to Investigate.' 

• In April. i876< IS -members at 
a branch meeting decided he- was ■. 
making a lot . .of' Jiiss abor* 1 
.nothing. . .. . \ •.* ■: 

Foolishly: : the frTifiSi ->took - 
umbrage at .Mr.- Lakhani's per- : 
si5tence.*: and ; then: resolved..' to 
exoo! him. Triey .knew-perfectiy ! ; 
well that would mead* the sack. 

“The employers i-cfitf -nor want, 
to sack M L LalifianL^biii reali&d .*• 
-they wbald liaverfp'^b so.”., | ' 








■. * • ' . . r 

: ■ k - * 

|iijancial Times .Tuesday June 271978 





Aids slick 


Long-life dies give 
low working costs 


Controlling book stock 

HOT EXTRUSION of non-ferrous 
metals is. particularly tough on 
the metals used in the dies. 
These . -constrain surface-condi- 
. tinned Billets to conform to the 
desired- shape and, during 
extrusion, the die metai heats up 
to Between 450 degrees C in the 
case of aluminium and as much 
as TOO degrees C in the case of 

So far, dies have been made 
of hot-forming tool steel of 
varying compositions, as have tbe 
die holders, and as both have 
about the same thermal expan- 
sion, no' difficulties have been 
experienced due to beating. 

But the dies are subject to 
heavy frictional wear, which in- 
creases with time and thus 
reduces \^e quality of tbe 
extruded plMuct. both dimen- 
sionally and^hrough scoring. 
Finally, the dies, has to be 
removed- and replaced, or recon- 

Tests conducted with tungsten 
carbide die inserts have been 
made in- the past, but have not 
been satisfactory because of the 
fact that it was not possible to 
counteract the material's ten- 
dency to oxidation on heating. 
At the same time, the coefficient 
of expansion being only half that 
of the steel die holders, it was 
not possible to prestress the die 
sufficiently in the holder. 

A new formulation of die 
material by Krupp Widia in 
Essen has solved these problems. 
With it, control of oxidation is 
possible at the working tempera- 
tures. At the same time, the 
problems of differential expan- 
sion have been solved by a 
redesign of die and holder 
layout The bottom die has been 
designed so that the inset resets 
itself and stays prestressed as it 
beats up. The mandrel in the 
top die is clamped in position. 

Mandrels and inserts are made 
and installed in customers' dies 
by* Krupp Widia. 

Inserts are available for tbe 
production of solid extrusions 
with circular sections from 6 to 
30 mm, hexagonal and octagonal 
ones from 6 to 2S mm across 
flats; hollow extrusions with 
tubular sections from 10 to 
50 mm outside diameter and IB 
to 3 mm wall thickness; and 
hexagonal sections of 12 to 
30- mm across flats and 6 to 
20 mm internal diameter. 

Depending on application, 
Krupp claims insert lives of four 
to 20 times and more than that 
obtainable' with tool steel. For 
instance, in work on brass hillets 

220 mm diameter add 200 tnm 
Jong extruding solid' rod, insert 
life was 700 billets, jbr 10 lo 15 
times that of «,teei. ^fcVith one of 
the aluminium alWys 100.000 
metres of 30 mm tubEng was pro- 
duced with no visible die wear 
and the brightness the tube 
surface undiminished- 

Fried. Krupp, 43, Essen. Pust- 
tacn io, German Federal 

Heavy duty 
spindle mill 

INFINITELY variable feeds on 
all five axes are provided in the 
-0-ton capacity spindle mill 
which Kearns-Richards has 
designated the SE180. 

A built-in rotary ‘.table .with 
high indexing accuracy and auio- 
malic clamping i.s provided and 
there is automatic damping on 
the slides. 

Solid-state controls have 
diagnostic capability;-'and auto- 
matic or manual -operating 
inodes may be selecicfl from the 
pendant. Customers may specify 
from a basic digital readout with 
four axes of control up to full 
paper tape inpul/output with 
display and manual control on 
tbe pendant. 

Modular building principles 
have been applied h<rth':lo the 
machine and to its 'control 
system and the company* is pur 
suing a policy of building basic 
machines to which customers can 
add what they require to bring 
the basic units into line with 
their plant needs. 

Information from Kearns- 
Richards (Slaveley Machine 
Tools). Kennedy lower. SL Chad's 
Queensway. Birmingham- B4 
6JD. 021 233 1242. 

1 XTRODUCED by Megalor 
Pumps of London is a packaged 
oil dispersant pumping set for 
use with spraying equipment in 
coastal waters. 

The equipment feeds concen- 
trated dispersant and diluting 
sea water in Ihc correct ratio 
in thos pray booms of the ship. 
The dispersani is injected into 
the sea water by a one gallon- 
minuic gear pump while the re- 
sultant mix is supplied to the 
booms by a sliding shoe pump 
ol six gullons/rninule. 

Included in the package arc in- 
terchangeable hose and fittings 
between the pumps, a relief valve 
on the sliding shoe discharge 
and a three way control valve 
un ihc injcctivn pump. 

The big pump has powerful 
suction and can be allowed to 
operate under dry suction condi- 
tions: it also has good self-prim- 
ing. Thus, maximum flexibility 
and reliability is provided io 
spraying conditions at sea. 

More from the company at 87a 
Newington Causeway. London. 
SE1 6EQ. (01-907 5616). 

NEED TO maintain stock and 
availability records of 16.000- 
plus products is a job few re- 
tailors would relish. Particularly 
if that list musr be updated by 
hand, and is subject to major 
changes every month of the year. 

For those of Britain's profes- 
sional booksellers who provide 
a comprehensive all-titles service, 
such a major slack control excr 
rise has been mandatory, it 
has been the only way Tor them 
to keep a check on tbe in and 
out or print Mat us and the 
current prices of the 16.000 
paperbacks marketed ai any one 
lime by the leading UK paper- 
back publishers. 

Now. those 13 publishers nave 
combined to sponsor a computer- 
based stuck control and recording 
system which, at a cost to book 
sellers or just lp per title, will 
provide them with an opportunity 

to escape- entirely the need for 
iaborious manual routines. 

Devised and instigated by 
Penguin Books and Pan Books, 
ihe “ Paperback Slock Control 
S vs tern " is being designed and 
will be operated by the Gordon 
and (latch Computer Group. To 
establish the system. C.&GCG will 
create a confidomi i! master file 
of all current paperbacks in the 
13 publishers' lists The file will 
detail the title author, publisher 
and International Standard 
Book Numbc- of each paperback, 
pins its price, in or »ut nr print 
status and subject category. 

From this master file. G&GCG 
will supply retail booksellers on 
demand with either a complete 
card-based primed bst of current 
lilies, or lists of those paper- 
backs which fit the subject 
categories in which they specia- 

Subsequently. each month 

from information supplied By 
the publisher G&GCG will issue 
Id subscribers additional cards 
for each new- title, together with 
a printed report detailing 
changes in status lo existing 

The 13 publishers will receive 
duplicate reports of all output, 
but each company will be given 
cnly details concerning its own 

Cost of setting up and 
operating the Paperback Stock 
Control System is estimated to 
be in the region of 2p per card. 
The 13 publishers believe it fair 
that costs should be shared 
equally, so they are proposing 
that the booksellers who decide 
to subscribe would be charged 
al |be rate of ip per title card 
mailed to them. 

Gordon and Golch Computer 
Group. 32/38. Scrutton Street, 
London. EC2A 455. 


Tough foams 
take shape 

HIGH DENSITY pnlyisocyanu- 
rate has been used by Coolag BV 
io Tilburg, Holland for foams 
which are capable of taking 
pressures up to 400 lbs per sq in. 

The foams have a hich degree 
of fire resistance and can be cut 
to any shape. They hove been 
specifically designed for use nn 
low-temperature chemical plants, 
where pipes and vessels need to 
be supported by an insulant- and 
in refrigerated vehicles where 
floor loadings require extra 

The Dutch company js a sub- 
sidiary of Coolas nf Glossop. 
Derbyshire, a member of the 
Tarmac Group's Building Pro- 
duds Division. 

Further from Tannac. Ellin?- 
shall. Wolverhampton WV4 6JP 
{Bil-nnn 41101). 


for tomorrow's 





Runs at 
low cost 

Epoxy agent 
repels damp 

auent Is much loss expensive 
than conventional solventless 

Further front the maker at 
Oakrroft Road. Chcssinglon. 
Surrey <01-937 3344 1 . 

guide. “ Design of brickwork in 
industrial buildings ** which may- 
be obtained for £1.50 (postage 
freei from the BDA at Wondside 
House. Winkficld. Windsor 
SL4 2DX <034-47 5651). 


A SUBMERSIBLE pump, suitable 
fur small to medium sized pump- 
in': stations, shows a saving in 
initial cost and provides flexible 
performance at low running cost. 

Its compact design and light 
weight make it easy lo handle 
and install, says tbe maker, 
Klygt Pumps. It has low 

electrical consumption. and 
service requirements are simple 
and infrequent. 

The pump will work either 
partially or completely sub- 

merged. under automatic control. 

It can deal with water con- 
taining high percentage of soirds 
and alternative impellers arc 
available for three optimised 

motor sizes to give wide per- 
formance capability. Large 
impeller orifices permit the pas- 
sage or big pieces of solid 


Further from the maker at 
Colwlek. Nottingham NG4 SAN 
<n«f)2 241321). 

FOR BONDING down new floor 
screeds — particularly thin ones 
which call for good adhesion — 
and for genera! repairs io 
Mlrui-lural concrete, especially 
where concrete facings have 
broken away from buildings due 
to currosion of the reinforce- 
moot, is an emulsified epoxy 
resin prod u el which produces 
high strength bonds between old 
and new concrete more easily 
and cheaply, says Protective 
Materials, than most other 

Called PML Water Dispersible 
Epoxy, it can be used by itself 
for waterproof coating on lift 
shafts, tanks, sumps, sewers and 
applications within the process 
industries, and once cured the 
product has almost the same 
high chemical and mechanical 
properties as solvenliess epoxy 

It is said to be much easier to 
apply by brush Ihan a solveni- 
Icss coating, and brushes can he 
cleaned in water instead of 
solvent. Surface dampness does 
not aflfert the bond achieved and 
the company says the bonding 



THE BRICK Development Asso- 
ciation says that while brickwork 
us a structural material has 
made progress into the market 
of multi-storey, repetitive floor 
plan buildings and has Ihe major 
share of. the housing market- it 
has made little advance in the 
industrial field. The majority' of 
single-storey, wide-span indus- 
trial buildings for factories, 
garages, stores, etc., have their 
roofs supported by sieel columns 
which are en\ eloped by a clad- 
ding material, sometimes backed 
up by insulation which, in turn, 
is protected on th-_- inner face by 
a hard lining. 

These methods, says the Asso- 
ciation, require regular main- 
tenance (unlike brickwork) and 
tend to lack brickwork's 
durability, aesthetic potential 
and overall economic value. 

It's argument is thoroughly 
extended in a 3 --page design 

Digs the 

of concrete 

OFFERING PURE rotary drilling 
in sorter rock formation and by 
selective introduction of valve- 
less hydraulic percussion, the 
addition or rotary /percussive 
drilling. speeds penetration 
through hard rocks, is the 
Holman RDP45. a rock drill 
from CompAir Construction and 
Mining. Camborne. Cornwall 
TR14 SDS (0209 71250). 

The drilling applications vary 
with initial interest being ex- 
tended to include major gypsum, 
potash and uranium producers. 
Those currently involved in 
development and production 
driveages in coal mining are 
experiencing the benefits of the 
drill, says the company, where 
45 ram diameter single-pass shot 
holes are required. 

It can he mounted on a wide 
variety of drilling booms or 
bases, including the Holman 
31IR600 Roil Boom. 

the production of concrete build- 
ing components, developed by a 
Danish company, is claimed to 
oITer a 30 to 50 per cent saving 
in cement when compared with 
traditional methods of manufac- 

Components are produced in a 
horizontal casting process which 
combines vibration and compres- 
sion and the production line is 
slated to be suitable for mixed 
output of walls, flour components, 
hollow-core slabs and so on. Sur- 
faces of wall components.- are 
smooth enough for direct paper- 

It is slated that a production 
line producing mixed types of 
components Tor prefabricated 
dwellings would have an annual 
output per shift of 200.000 square 
metres, between IS and 20 men 
being needed. The plant is being 
put on the market by Vipres A/S. 
Datavej 4G. DK-3460. Birkerod. 

SINCLAIR has announced details 
of its second “new generation" 
unit, the DM 235. a 6 function. 
3! digit bench-top and portable 

The DM 235 is available at 
around half the price of com- 
parable digital machines and 
considerably below that of many 
conventional analogue meters. It 
can measure de and ac voltage 
and current as well as resistance, 
and be used for semiconductor 
junction tests. 11 has a total of 
26 ranges. 

Incorporating all the advan- 
tages of a larger bench meter 
m its use of a forward faring 
dt-iflay. controls and sockets all 
an the front panel, the D.M 235. 
has a large, bright S nun LED 
display with a very wide viewing 

The unit is only 1* inches 
thick and the weight is below 
It lbs. It will fit easily Into a 
tool kit or briefcase and tbe 
Lilt stand doubles up as a 
handle. A carrying case with a 
neck strap, which allows the 
instrument to be used with both 
bands free, is available as an. 

In the field, the DM 235 "is. 
powered by Tour internationally 
available Ull size disposable* 
cells. Where continuous bench 
operation is required an ac adap- 
lur/charger is available a s an 
option, as it is a rechargeable ' 
cell pack. For Ihe TV service ■ 
engineer, a 30 kV probe is 

Sinclair Radionics. London 
Road. SL Ives. Hunts, Cambs. 
PEI 7 4HJ. p4$0 64646. 





730 pagas. 21 * 15 on 
Crectory ol 2.800 manufacturars. 

Yellow pagas listing BBO product 

Technical lorms in English. German and 
french. ' 

Special sections on American firms in 
Europe and Trade Aimcmml 
M r published br Wedgwood » Co. and 

782 pages. 28 * W an. 

Orecs dry ol WWJ mjrjutnc«Lir«T?. 

Yellow pages listing 1.B00 product 

Special section* describing 3.000 in- 
daoendem agaus and i50D (Sunbinors. 
PuhSshed byr Hams PUMshaig Co. 

Both avnOabte from: 

C. G. Wedgwood ft Company 
■M.Kiae'ai Road. Wimbledon, 
London SW19. Tat: (Oil 540 BZ24 

DURING THE past ten.. years 
there has been a great "increase 
in the number of pleasure boats 
using waterways. Hirers are not 
always adept boating people and 
consequently are unaware of 
potential risks of fire or explo- 
sion which might result from an 
accident, " T" ' 

Now. the British Waterways 


Board has announced-' that- in 

1980 newly constructed craft 
and all pleasure boats and bouse 

boats to be let /out. for hire on 

canals will have to meet certain 
standards. These will cover 
safety and fire prevention equip 
went and require the hull 
machinery and fittings to be 
sound and free from defects 
likely to affect safety. Tbe 
standards will also cover engines, 
fuel tanks and pipework, electri 
cal and gas installations. Owners 
of other craft are being advised 
to achieve these standards which 
are compatible with those cur- 
rently applied by the Thames 
Water Authority. 

Local authorities have power 
to set standards for hire boats 
hut because the waterways cross 
local authority boundaries the 
BWB has taken this initiative in 
order to avoid a multiplicity of 

More from the Board at Mel 
bury House. Melbiiry Terrace. 
London NW1 6JX <01-262 6711). 

electrical wire&cable? 




Thousandsof types and sizes in stocMor immediate delivery 

LONDON 01-561 8118 ABERDEEN(tE24)32355/2 

MANCHESTER 06?-872-4915 


' • ■ ^H^:E^CBGENCT^I1A<IBEB01 6373567 Ext. 409 



JMew leasehold factories and serviced sites 

are ready NOW. 

* Government grants are available and 
substantial rent concessions may apply- 

i . Mauu motorways, fast trunk roads, ig 

* SpeedTrains and modern docks hnk you 
with all your suppliers and markets. 

ic New Town housing availability. 

Cwmbran Is 2 hours 

and lot more than choi 

carr !S™ t «sehold industrial premises 
^^^^leSehold sites are also at 

excellent Homing. 


j, school® 







Tenneco’s net income grew from $231 
million to $427 million during the last five 
years, a leap of 85%. 

Operating revenues topped $7.4 billion as 
all of our eight businesses showed increases 
over the five-year period since 1972. Jn 
addition, six of the eight posted sizeable 
increases in operating incomer 

1977 1972 


Integrated oil £399 

Natural gas pipelines 289 

Construction and farm equipment Ill 

Automotive . 72 

Chemicals 52 

Shipbuilding 50 

Packaging 45 

Agriculture, land management 20 


. S399 

S 92 

. 289 


. Ill 


. 72 


. 52 


. 50 


. 45 


. 20 


... 8 


SI .046 


“Before interest, federal income laves and minorir stockholders' interest. 

These results reflect the success of the 
Company’s aggressive program cf capital 
investment for modernization and 
expansion— $714 million in 1977— which has 
permitted us to declare our tenth dividend 
increase since 1965. 

This growth also indicates the strength of 
Tenneco’s diversification program, which 
concentrates the Company’s businesses in 
fields which serve the basic needs of people, 
w/th. special emphasis on critical areas such as 

Professionals are referred to Tenneco’s 
award-winning financial analysts’ yearbook for 
further information. Tenneco Inc., Dept. X-2, 
Houston, TX 77001' 



- =4 





wishing to have 

(pref. not Generica) 

introduced onto the GERMAN market— incl. local manu- 
facture. if desired— are offered a unique opportunity by 
successful. expanding medium-sized. independent 
PHARMACEUTICAL FIRM with very respected name and 
reputation in the FEDERAL GERMAN REPUBLIC. Quali- 
fied and efficient field sales force with back-up available. 

Replies — in confidence — to the advertisers retained 

1807 Bionay, Switzerland 


If you have premises in 

North/ Korih West.- West London 




** J> 1 !* «■« mm mwi i mim-owm m i ent 




at uumpctliiw rales 
PmriiK up 10 15 yi?;:r? on 
Freehold or Ler.j Leas*- 1 ho ij 
owner occupied ureiiiistw. 
1 St Pauls Roail. Bri.-lu! S. 
Tel: (0272) yC4S) > /294373 


Capita l and expertise *.j for lh # 
Pufchi;; oi i share m » •■itie busiiwu 
with undoubted expani.on jswniul. 
AJ»e'tiscr n managing C- jnoi/:lii'> 
te.-?d imunani with '• i"r »«■•«»' 
busmen and financial . 

Wni( Box C.7167. Fl-:~: H Times. 
50. Ccnnpn Street. ET'P '‘Si". 


Following •:<■/ ?a«m»c mjrlct »* t- ne''i>n 

ainiftmw mbi to e«io.r .a a*n high* s--":» iul wehnolog/ and ?r 3 du:a 
in structural foam moulding in Eure?:. 

t number of different laimf cl caoac'i: 1- *" Eng 1 Ilf. raniany in 

litt.ns up a production jn-l m the U ►: -.o «.- ■ :h-oujhout Eu'oo: «auU S; 

conudercd. Ic h ensilaged that an initial .n.etfpsnc oi £5£0.C0Q woo.d b? 
nsuiur) . 

Interciied ihou.d *•■». S'-'*’* tr fail* of p-tutt .Mtrem md 
othc. relevant detail s. *11 repl.o « » 0£ iw* ”* «'•«««« confident* a-r the 
tcunpan/ « U.K consultant. 

V/r.te Bo* G.21SI. F.iureml Tins:. 10. Ccs'vn f'eet. £C«P «3f. 


Well established Ausrralian Company, scccialist applicators and 
manuFacrurers of proevetive coatings, requires capital for 
further expansion in the surface coatin? industry. 

Approx. SA2G9.0CQ 

Proven and profitable performance over 27 years. For more 
derails apply in writing: “ Active Partner." G.P.O. Box 2422, 
Sydney, N.S.W. 2001, Australia. Director will be in London in 



TURNOVER £750.0(1(1 

4 colour Holand Ultra. 2 colour and mono machines. Gui Ho- 
lmes. folders, stitcher. etc. Own (date making. All modern. 
Very well equipped modem 'miildine. Sp*<cv 15.000 square 
feel includin'.' olu'.es. Ample parkin::. Build in-.; for sale 
freehold or could nc rented, .'.'ear London. 

Write Bi'V G.2156. Financial Times. 
10. Cannon Slrcet. EC4P 4BV. 


Onlv asset freehold block 15 flats and 5 shops built 1972. 
Estate Centre. Total Rents £10.000 plus. Good potential. 
Advantageous Long Term Mortgage. 

Write Bos G.2157. Financial Times. 
10 . Cannon Street EC4P 4EY 


\ v.ll e?-.l:iMi: 4 iod private iruinpany opera line in \ ■■•rkshiri' 
and Lan'.Msliire. Sales circa C!m p.a bui hf in-j around 100 
houses- p.a.. maml> hiiher price ramie. [.ami hank for 4 
years at pr'-M-nl output. Substantial stock appreciation and 
ux aJIo-Aant-e.*. 

Prod Is El 30/200.01 K) pa 

Principals only. Wrile B»v G.2155. Financial rime*. 

10. Cannon Street . EC4P 4 BY. 


Well established- 


Own well-equipped comprehensive workshops. Located Bristol. 
Principals only should reply. 

Write Rax G.2IS1. Financial Times. W. Cannon Street.. E CAP 4BY. 


Specialising in the sale of 

Well established company with turnover approximately Uni. 
' Prestige sites. Please reply Box G.2152. Financial Times. 
° 10. Cannon Street. EC4P 4BY. 

Company awning freehold sue t !< 
icres) wish rcturbithsd Inn xnd R«i- 
•tau'ini. Luxury icII-cj wring FUu a»w 
Hotel lor Annual cutnavc* 

'Cl 20.000. ,n ( « e " 4,1 

'£2W.OOO reoui*«d. Prin:ipaii only 

Deioi/r from Co* G.Z 1 5 J. Financ'd 
Xiptes. f0. Cannon Street, -CiP W 


■ ]am!Tf business suueted south of 
Birnnnghim to- isle. Mode-A teusho'd 
prcmiMs. sgljiunual mode*n .equip- 

Fa* Jetalh toitoet 

2. Si. Ph lip's Piatt 
Birmingham BJ 200 

rc'eahrjne 021-236 8236 


Net profit year ended 5th April, 
1977 approximately C24.Q0Q, 

• Offerr around £60.000 
i wif! be considered. 

"^Wrlte Box G-2IS7. Flnunoof Tunes. 
■*> ffl, Cgrthon Stree!. £C*P «BY. 


The company has capiul gains in 
losses i*ailah:* lor disposa* m s:ixi 
from £1 00.000 !9 C > .3m. 

PlMie write to eomticny't odwiseri 

flov C. 2 Ja<. frn«fici 0 l Timsj, 

Ifl. Cannon Street, EC4P 4a t. 

YiJchT CHANDLERS For Sale £:•». ' & I iaDYYORTH. SURREY. Cms- M.ZS molor- 
^ears Prime poiRIw" S fc Coast Aurac- 1 wav. Rsieale sect Ion. Modern 

e,vc piirecise DeS'CncO Z Floor Shop. fartorv a sac s*\. It twllh wgodwqirhinp' 

JBIUS Urge 2-0«I F'U£ «*«■• ,s vc *’ ' ngtu cnginwnr.g r.gsiness. H E. 1Z 
Jease. Details 9o* G2I5J. F.-anciaij Luxen ilMur5 Gardens. London. W.C. 
^.met. <0. Cannon Sirrci. ECoP JBY. I , 


When combined with ;iddi;ii»n^l hisinws could resiilt i:i a 
viable company. We are particularly ;r ter os led in iumi panics 
in the Norih-Wesi uf bncland ^pcL^allS^^^: m lit-.- mass 
production of fabricated cunpcnenus. namely ui'jc wire 
manipulation, prestwork. etc. 

Please reply in confidence to: The Managing Director. Crosby 
Sprinus Limited. Fleet Lane. St. Helens. Merseyside. 


Investment Opportunity — South East Asia 

No** oo--jt:ng « i Fiunx •Ismpanv ( Iniorponsed in l°72). :c 

Oepos.ES. c*p;.'i:n<#d in ih; Financing a; Expo'c-lmporc S-idg-ng. 

Ma-igagc. H.-s-Pu-chai:. Sc:u'>:i» eu. in Honj Kong. tm>r««ted r» ■ icxniion 
in South E^f Asia co spccui'i: in Mono/ Mxrlvc. Foreign Exchjng.- To-parxce 
Fman:» an 1 * a:i Mi-ch»ni BsnVm; S<r»5:oi. add. tans* Capita: P::fa-i-bly 

irom in *itzbliih;d o«l"|«i Bank, inccrctcd in having a Pr<«cn:: :k-ou;h 
such a vcbnlt. ro avail o: th; cpr<criuni:iff» ;n rhi region jj i growing 
Financial Ccncrc. Will conifer relinauifhiog r.on:'ol if io requi'ed 

Wfi:« flo» G.2I7*. Financial Times. 10. Cannon Si.’ee:. EC4P . 



We are an established Private Company, whose present 
activities 3 re In construction and allied fields. 

We are seeking a substantial interest in a publlcl’*. listed 
company by way of injecting into it our v«ry profitable and 
cash rich subsidiary, to expand its activities. 

Replies in confidence to: 

Box G2G93. Financial Times. 10 Cannon direct. KCJP4BY 



Write in confidence to Box GJ189. Financial Times, 
10. Cannon Street. EC4P -LBY. 

Fully Recognised 

Advertising Agency 

with sound tr»:k r«ord. good mgnig:- 
mvnt and financial rMOiirccl. iccks to 
a 1 quire aihcr Ad-crming Ag*nci«» and 
Comuiranciei m order to ici 

operationt and develop at* *'cu it 
basmcK. LotJ-on ■> not «nipo tint. 
We »re willing la contid*' i* O'iposi- 
ciont Irom principal! wani ng ti-iou-.;v 
to dn:u>-. pat!. o'? i:gaiiuiei 
P>“as* n-'io .n :onCd:iu-' :o sir'. 1 -.-, 
in th? fi-H "ituiv, P»-i.:<i:a'! 
on'y b? iD'wardtd iO Ou- -lent >?tcr 
the vendor 1 ! JDP'5<>. 

D. J. WESTON. £50 
Broadway Chamben. St. Pct.-r'i 
St Aibani. H-'rlcrdih're -LI 1 l:! 



preferably in a service industry, 
earning pre-iav profits of at 
| (east £250.000 a - ear. Replies 
I please to Mem: Securities 
Limited. l q . Felton Street, jj 
J London WIT ?H£. .virh S ye*"* 
l balance sheers. Strict confi- 
; fence assured. 


Motorcycle Dealer / Repairer 
much curnomer not less rhan 

£250,000 preferably South 

Reply to: 

81 Carter Line. London ECa 
T:l: 01.136 0031 

Small Private 


d unaace 

seeks to purchas: o- merge *»nB 

sir.i-l; -. { 

SPE’ll^LlsTV IN I 


Main market! Midd'i Sail and Africa. 
Wrfit Bor G Jli<. Financial Timet.: 
10. Canon Strrr:. tC^f* 4BY. 



Could be opportunity lor o*ner mha 
wiahet io retire. The amount avail- 
ao'c far Inveivnont is £100.000. 
Wr'tr Bo» G.21SP. Financial Times. 
10. Cannon Siren, EC4P 4BV. 



Write Bov <3 2086. - 

Financial Times. i 
10 Cannon Strjr.j £C4P 4 &X 


Write So* 0.2 fdP. Financial Tones. 
10. Con non Street, £C 4 P ■*B > - 

An established P'an; Hire Cortlpanv 
*ith particular ema.-ij,., on jtj(f 

I! rcqunid prulcraj.y , n t h< 

Wcit of Engiaid. anh^ggh M 
Nor:h Eai» and Sou:h Central SiitUnd 
wsuld o; csriaii*?'.-d J 

Principal, p-j/v tl t: . r write 
Bo. G 2144. r inootial Tim 

10. Cantien Scree r. £C*P 4 



Number of offices immaterial 
Write Box IJ.21R2, 
F'inancial Times. 

10. Cannon Street. EC4P 4BY. 


u m:« rened m i:a-. i-Ing se it'Olling 
■ntertsc in t-adipj ran, panics n South 
Wales and :h< West. 
Continuation or preune mar igement 

t MuatUl. 1 
Apole to The iVgnej,^ Dfrator. 
Bax G 2163. FootchjI T/fles, 
10 Cannon 5«»ee:. tC<P <8^ 


I am interested in acquiring a 
partial or total interest in a 
corrugated container sheet 

Write Box G. Ho4. Financial Times, 
10. Cannon Street, EC+P <5Y. 


Annual Premium 
Full details in Box G.2165* 
Financial Times. 

10. Cannon Slrcet. EC4P 4BY. 

ACauiSITION-MLRGER Wine *Hd - Or Spirit 
Trade vounp Camnarv with xmoltious 
management -wish ro atauirc mne And or 
sairl! business or OQSsibfc m^-aer sirux- 
hon. write Bfl v C 2 1 66. Financial Times, 
i a. Cannon Street ECd 4Br. 

1 ! — ■ _ - — 

{MANAGER. 3S. . "(scij mmorlfv eaultv 
i share l« tn—unti rural manutarturino - 
business needing ^r3( clil - afI al sole* dWW- 
’ oemen:. Iniiiai iii-uii-. to Eo* G216I. 
i Financial limes. >Q Cannon 51'cet. EC*" ( 


Permanent and long term capital 
for the successful private company. 

Also a -wide range 


Selective finance for property development 
Commercial and industrial loans"'' : : 
Bill discounting ■ 
Acceptance credits . 

Leasing . 

For further inf onnation 
please telephone 01-606 6474 or write r 
to Barrington House, Gresham Street^ 

<^eahamlj^:UiL,33irmgron House. Grtoham Screct, London EC2Y7BE 
TeL 014506 6474 . -. -r; 

Tel 1 021-436 12 

■7TWn' | ttrJ I Vi'r Pi 


Tho Role Organization Limited is a management consultancy 
organisation specialising in the study of its clients' markets 
and their products. In addition, it handles a wide range oF 
personnel assignments, including sophisticated sales tr ainin g ■ 
and the placement of permanent or temporary personnel of a - 
management advisor; - or executive nature. 

ROLE is seeking to increase its panel of experienced^ 
cnnsultants available for assignments within the UK or abroad..' 
Consultants tmala or female), in particular in the field" .dC- 
enrporate planning, marketing and sales training, are asked? 
tn telephone either John Christian or Lewis Morgan-Thrnnas 
on Milton Keynes (0908 ) 78785 to arrange an informal; 
discussion. R/6/3. • ■' 


39/41 The Concourse, Brunei Centre, 

Bletchley. Milton Keynes. .» 

Tel: Milton Keynes (0908) 78785. 



Medium-sized company trading internationally ia buildiift' 
materials, fertilisers, foodgrains. 1977 turnover US £25m - 
Half year 1978 US S25m. - f . 

Write Box G22168, Financial Times, 10. Cannon’ Street, 
EC4P 4BY. 



with extensive modern plant and small kkilied workforce 
seeks merger (outright sale may be considered with large 
organisation). Turnover approximately £90,000 pjl 

Inquiries invited from quoted companies. Write Box G.2129, 
Financial Times, 10, Cannon Street, EC4P 4BY. 


British and 
European Business 


New York State based sufesldjairir. ' 

Group can provide varied; 
payroll, taxes, shipping • correspondence^ " ware- 
housing, for company 'exporting ff om U^ to tT;SA 
Pharmaceutical or allied industries pref erred. 


For further information writer 4'^ 

Box G^ITF, : - 

. .. 10, Cannon Street . EC4P 4B?S ; 


■fe assist U.R^/European 
Mfrs., eu% to' establish 'In 
America a complete, service, 
is offered. \ 

• Market Evaluation^ : 

© Location & Evalualite) of: 
Company Acquisiqpns, 
Distribution & Manufdfetg. 
.fee Ui ties. etc. \ 

For brochure, etc, contort \ 
INDUSTRON consulting \ 
-270 Madison Avenue ! 
New York, N.Y. 10016 . 
Telex: ITT 423067 


; VT ?•' ,t ** k JL-.y : 

i- r mmpmr 

lonij- Ert^sj^Jiddof* area 

- • T/O £3 increasing 

Ownor wIlMi^ ro reitre would iik« » 
make contict^ with . perron thoroughly 
ax peHen<y a Hr managetnenc, tales 
■ onciiuwi. and -numerate, who would 
be.. interested in 'fhircltttinB a -pert- 
or tm .njnicy.-and. takinc management 
rttponiibWqr- Further. 'cqoity purchase 
ft» ufdmaee -control may sofcequeniiy 
- v J- . A* possibly. 

I- from prhJdpoIa only 

; ro. 8ax;<jUf£A. Flnmkrf^ Times, " - 
. TO. ^BnnAw:Streer.-£C4P.4&r. 

Ex-Managing Director and Chairman 
ot ihite Push: ‘-onipame,. witli 
pro. <n dek record, ii now tree (o 
*:-:<pt lonsuicaiuy itiig.imeflis. 

Hy -».ur i?<pi- ic,i:r m enjiiirf.'ing. 

mt-kui-.ig O' iOllSunicr p. oajcu and 

<P-:a-da.e h-iin^ ng mcthodi tnaO 
■re to "par: qu'^x’y ana SCw'fir 
on nits io indicate company 
mlay. M, m._ ih.-dt w<«l sa« t-mc. 
discordance, cxccvdoe umeu and largo 
COnrin.iina IM1. 

Pleas* muse m lull confidence with 
briel d -tails Box G.21JS. Financial 
Times. 10, Cannaa Street, ECdff 4BT. 

New Partner required 
London W.l. and. Spain 
Unlimited scope lor strong - personality 
property and sales entrepreneur to 
make decisions and motivate psoP‘. 
Sa-i thaie m a small piop-?-iv and 
building company, holiday vnlas. mdus- 
t-ial housing. <u. British and buroPtan 
marked. Low overheads. £50.000- 
orders m hand Total investment o 1 
£10-25.000 including chare of Spanish 
company and sales agency. Potential 
lor large concraau for Spanish and 
other domese: marten. 

Tel. 01-458 200* 

[f you : are. tired of working: 
as a Property Broker or 
Dealer, and hoping to go into 
business on your own, but : 
have "no finance, try us. Wp 
wifi., finance your deals and 
share with you the profits. 

Write Box (j. 2 172. Financial 
Times, 10. Cannnn Street,' , 
EC4P4BY. - 



to UJC/ Europe /Middle East. 

lebour^ving,. port- 
ible,-^ airless spray machine which 
a PPlin. cold bituminous coatings, etc., 
designed,:- especially . for the watcr- 
prcioftng. / corfcractor. • Sole - ’ agont is 
: peeking bone. fide. -compomn Interested 
f »b T| B«*wji(»M«.mWr- and 1 marhecing 
dns ext rcmg. ncTr' projoEt on a" royally 

Write 46: +W. X. -G6DWIN - 
. 600. Hbbeydale floatf, Sbeffiald 57 2BL 

V ^ 

y v 




capable of finalising the development 
of a prototype electronic recording 
equipment with latest logic dei'gn. 
leading to engineering the product and 

undertaking lull production! If you 
ar? in {9 ret red and have the necilia-y 
capacity. Please . writ- and we will 
immediately contact you. 

V/ntc Bov G 2171. Fm?n;i>l Times. 
10. Cannon Street. EC^P 4BT 

We ha«e prestige offices in the centre 
oi OM York with spare space/capacicy 
with switchboard. Telex, and secre- 
tarial aid at required. 

Successful Dutch company with highly 
professional sales force - selling and ' 
hiring In produces to the Dutch con- 
struction industry. « aWe » tundlu 
two or three compatible - products.. 
Such products should be high-quality 1 
well-designed products or .equipment 

■with distinct user benefits. j 

. • f lento send nrformotion io J 

Box G.2/7V, Financial Times. j 

. tOi Cannon Street. ECdP 4BV. 


Details from, and suggestions to. 
Box G.2f69. Financial Times, 
ffl. Cannon Street. EC4P 40T. 



«f potential international 
best seller requires additional 
private finam-e. Limited 
period. Hish return. Write 
Box C.21S5. Financial Times. 
10, Cannon Street, EC4P 4 BY. 

Ptet'js each First Grade top U.K. 

15-30 6 PR Tyre & Tube 

750-76 6 PR Tyre & Tube 
available through September to 
mid-October I97B 

Starion Rd.. Ilmunter, Somerset. U.K. 
Phone: 64605 3011. Telex; 46338 

. .- U.S. GOAL 

seeks tp borrow, -funds for 
expansion;- repayment of prin- 
'opal and interest assured. 
.Write Box C21SO, 

... Financial Times. 
fO.- Carina n Street, EC4P 43Y. 


Smill hjwijiniem 'j Management Com- ; 
pany (nc. 1 9J1.J and a Dealer in i 1 

Secarltin:. interested in expanding >u ^ 

Maiiagehyont -and Dealing Divisions. — . *“ 
seeks | association With' qnertnan , con- ' . ^ J 

sultancy.'i or- dealer. ;toi expand on S^,,- 
Prefi t-shpS ngTbasis^ M odam ■ Qty.offices 
-and finiriclal .backing.- available.' Will 1 o . 
afcWcoeisiifor ipostib/e merger- propouh i 

vrith.-iintilar size companies. lJ - ^ 

. .Write Bdx GJJD,- Ffnanduf Timet. — 

.- J0t CaiMoq Street, EC4P-4&T. - \ 



land Jrcm othc’ sources) 
Exceptional quality office furniture, 
tea* desks, hide chairs, swivel chairs 
in tweed, filing sab'iucs and filing 
cupboards. Adlsr and Qlvmpta type- 
writer . 100s of other bargains. 
Phone for details; 

Brian North or Sill Raynor at 
•• Commercial." 329. Gray'* Inn Raad, 
London WCI. 01-8)7 96*3. 


FROM £69 

Formation in Britain and all maior 
countries and off-shore area* 

Efficient personal service. Contort; 
CCM Ltd.. 3, prospect Mill. Douglas, 
Isle of Man, Teh Douglas 10624! 
23733. Telex; 627900 BAUOM G. 

Up to £4m. capital losses 
wanted. Company with large 
unrealised capital gain wishes 
to purchase agreed capital 
losses/ Principals only write 
-to Bos GiiSl. Financial 
-Times, 10,. Cannon Street, 

. EC4P4BY. 


Businessman, based In, London with 
capital- ind ■■good contacts. In. MiddW 
cue- speak [rig Arabic: looMirg- for in 
experienced -.-partnor m '-induicrlel 
recruitment. Capital not -'r.eqm'red. 

Re fpr ecces eauntitL 

- ■ caiir : . .. 

Mr. Naffa" 01-370 4044 

PrintiHg Compaay 

"situated i« 


present turnover £500.000 per annum, 
requires capital lor reinvescmenc in 
new machinery. Present ftwnen/direc- 
ton would welcome interested parties 
for. discussions to mutual advantage. 
Wrl te Box G.llBO. Financial Timet, 

. ' -10. Cannon Street. EC4P 



Ac present sub -contracting Cl 00.000 
Of preiswork per annum. Surrey- 
based firm preferred. PleiM send 
details Of capacity available, e.g- 
P'oimis. etc. 

Write Box G.21Z1. Financlol Times, 
10. Cannon Street, EC4P 40T. 



30. City Road. ECt 
01-628 5434/5/7361, 9936 


We can hire or sell from nock over 
2.500 water tanks ideal for packing 
cues. Profitability to pure (uteri 
£50,000 plus dr save 50% capital 
outlay by fairing. Packing and chipping 
. . undertaken. 

FOR DETAILS: 0977 661*91 


f KE °ry reconditioned and gmraataed 
hy IBM. Buy.' save . up. te 40. p.«. 
Lease 3 years from £3.70 weekly. 
-Rentf.frionr £29- per . month. * 
Phone: 01-64] 2345 

£1 a wEtK lor E.C.2 address or shone 
ntauges- ComoUwd rai« + tatax 
nov- U ■ week. Prestige- ofhtec near 
Stock Exchange. Message: Minders Inter- 

Stock Exchange. Message: Minders Inter- 
national -d -828 0896.. Telex 8B1 1725 


. ' * m - f A, 

'a. -**av 


to fund freehold agricultural land 
on profit sharing basis. Approx. 
450 acres. £U00-£I.400 per acre. 
Please reply to Box G.2I33, 
Financial Times, 

10, Cannon Street. E4CP - 4BY. 


Managing partner of Gulf company 
•luting cfic U.K. I4ch Ju<y wuhct to 
meet companies wanting to export or 
be rcprciontcd in the U.A.E. Mam 
interest building materials, i-on. 
monger? . architectural iranmongt-y, 
lhop fittings, partitioning, eeilingt. 
Please send details to BA 
Bar G.H7Q. Financial Times. 

10. Cannon Street. EC4P 4BT. 

[ EXPORT AGENTS required tO WIl USA 
Skateboards. Write Box GJI7a. FImd. 
cm I Timas. 10 Cannon Street, EC4P 4BrI 

! OVERSEAS RESIDEMTS. Send lor our tree 
Dnxhure on expatriate ■ services ana « 
SUOPlIes. Expat-, Box 3ZS. London S£2l | 
8 HG. Telex 947451 EXPAT- G. 

A CENTS 'STOCKISTS required -foe MKMCd 
• and canned wit drinka. aiM French I 
Cognac and Brand v in the U.K. and) 
i overtoas lor new and exclthw A*n»r» [ 
write Bex G.2177. Financial Time. 10.! 
1 Cannon S WM. £C4P 4BT. 


Over .400 sets, m stock . 

- . lkVA-700kVA-r . 

Boy wildly from the q t a n afa c t orwr 
with -full -aftap salw wrrtco - 
0I-9& 6 823) ; 

Tekx BV7784 • ' - 

... .^inancia] Times Tuesday June 27 ] 378 

Ca*., i 

*■ . ’’2N K 


* \---0 

«■» Ut'%. 

- J ^ 

* '**: ;'. £.■ -.- 1< 

*v .» _• « •; 

THE latest figures on UK 
economic activity may be mildly 
encouraging, but they do little 
to alMtf fears that the long-term 
trend in unemployment is still 
upward- Stimulating demand 
will Increase consumption of 
goods, but changing technology 
will mean that less personpower 
will be required to produce 
them. Volume products best 
made 6y labour ■ intensive 
: methods .will be imported from 

the Far East and the Third 

H will take .ten i» 15 years 
for. the UK to find appropriate 
high- added-value products and 
services, sand to organise itself 
no supply ^em. In the mean- 
time,- action'* .is required to 
' ameliorate the effects of change, 
passive measures to protect 
employment — like job subsidies 
—are useful: so too are active 
projects for improving the 
physical or social environment. 
Much more important for the 
longer-term are adult retraining 
programmes. Subsidises young 
people to stay at school ‘could 
be productive, provided that 
they are helped to acquire the 
skills needed for the 1980s and 

■' But some see this whole view 
as 1 over-optimistic. They say 
that traditional growth rates are 
no longer a sustainable objec- 
tive. With the added impact 
of technological advance, the 
volume of work to be done 
will shrink and a start must 


be made now to share oul the 
remainder. OtheiWise. there 
will be a growi ag:number nf 

under-privileged, unskilled, un- 
productive unemployed people 
swaying between apathy and 
destructive anger. This con- 
tingency requires, a- plan. 

In its April Gazette, the 
Department nf Employment 
examined three ways of work 
sharing: a shorter basic work- 
ing week: louver holidays: and 
a reduction in overtime. 

The Department; discarded 
alteration-, to the working week 
or holidays as inflationary, 
likely to affect the compelitiw- nf UK manufaiciurers and. 
therefore, self-defeating. How. 
ever, ii suggested that, reduc- 
tions in overtime might be used 
for job sharing without such 
adverse effects, since premium 
payments would he feduced. 

If it were possible, hypo- 
thetical ly. ji, cuuvett all over- 
time worked in manufacturing 
into full-time jobs, "unempluy. 
meni in nianufadurjng could 
be eliminated, the Department 
said. The practical problems »r 
reduced flexibility, carrying out 
work which has to bet done out- 
side normal hours, reductions 
In earnings and .packaging 
overtime hours into .workable 
jobs would, in ihe Department’s 
view, limit the potential of this 
approach and would require 
detailed planning at the. work- 
place rather than nationally. 

How real are these problems? 
As a start it is necessary in 
identify the people vvhpse work 
might be shared. Tjie>'Depari- 
raent of Employment's statistics 

ing overtime is no 
create new jobs 

Harnessing the 

Eric Heuch and David Kingston 
question the feasibility of 
the Department of Employment’s 
proposals for work-sharing 


Number Overtime hours 

employed worked per man 

Occupation (manual males) per week 

Maintenance of all types 40 10 

Process plant operators 25 9 

Machine setters 45 8 

Machinists (skilled) 70 6 

Machine operators (semi-skilled) 40 3 

Tool room workers 30 5 

Material 'handling & stores 80 A 

Quality control 130 4 

Assembly (semi-skilled) 580 3 

Assembly (skilled fitters) 40 £ 

TOTAL “ manual males" 980 5 

; Average 
■ overtime 
p*r- person 
per. week 

vi ♦ 

vZvM 7 

n KCLtm 


Promotional and technical 
literature for export 
sales to the 

Arabic-speaking countries 
of the Middle East and Irao 
must be translated and typeset 
in the idiom and style 
the market . demands, 
by specialists 



■ TELEPHONE: 01-947 j27i ! 

Type of p4r- person 

Worker per. week 

Manual Male. "* *5.& 

Non-Manual Male '-1.4 

Manual Female - 1.0 

Non-Manual Female ■; -0J- 

The next table shows the. top 
ten occupations currently Work- 
ing oven i me. / • 

per person 

Occupation per week 

Heavy goods vehicle " 

drivers 'TOB ; 

Bus and coach drivers HL5 ■ 

Bus. conductors ■ '$& . 

Mechanical . plant, drivers 9-8 
Agricultural machine 
drivers ■ J ' 8.9 . 

Other drivers' 8.0 

Crane drivers 7.9 

Foremen (sheet metals, 

etc.) 7X 

Maintenance fitters 7.4 

Furnacemen 7.0 

are invaluable. The fir*t table 
shows that male manual workers 
tarry out the most overtime. 

The second table might sug- 
gest that there must be some- 
thing about oil and petrol which 
Venerates a desire to work over- 
time! In reality, the common 
factor between most of these 
occupations is that, in each, 
penple are performing a service 
function, involving expensive 
machinery, to meet customer 
needs. Labour cost is a sub- 
ordinate factor. 

Women set 
work patterns 

Does the work have to be 
dime by men working long 
hours? In some cases, at least, 
work could be shared by extend- 
ing shift-working, split shifts or 
split-week working. But how 
acceptable would the conse- 
quent reduction in weekly 
earnings be to those currently 
employed in these fields? 

At the bottom end of the 
overtime scale, men in clothing 
and footwear work only 2.6 
hours per week each. These 
are labour intensive industries 
under international competitive 
pressures; work patterns are 
also- m set hy the women opera- 
lives', " wlio provide a high 
proportion of the workforce. 

In-between there is the mass 
of workers, many in engineer* 
ing, for whose\overtime habits 
the statistics proride no readily 
identifiable pattern, in order 
to assess the feasibility and 

possible scale of work-sharing 
among these, let us examine 
the case of a hypothetical com- 
pany m engineering with a 
typical mix of overtime work- 
ing. Tbe numbers employed in 
various departments are set out 
in the third table. 

The overtime can ' be 
considered necessary for three 
reasons. Firstly, there is essen- 
tial work to be done outside 
normal hours in maintenance, 
in starting up process plant and 
materials handling. Much of 
this is done at different loca- 
tions and times and could not 
be packaged to create jobs. But 
there are 15 mechanical 
maintenance fitters who work a 
basic week plus high overtime 
and it would be technically and 
economically feasible to redis- 
tribute their work lo employ 
four more men. This would 
require night-shift working or 
some form of split week, with 
two groups working three and 
four days alternately, and would 
pose a recruitment problem. It 
would also involve persuading 
a loyal group of men radically 
to change their working 
routines and to accept a pay 
reduction, if costs are not to be 



The second reason . for 
overtime working is that 
sufficient skilled men cannot be 
recruited. Management uses 
overtime to provide capacity in 

bottleneck machine sections, 
and to enhance the earnings of 
skilled men. The latter is 
required to. maintain acceptable 
differentials against semi-skilled 
assembly workers who earn 
bonuses, and lo retain the men. 
If these problems did not exist 
and recruits with adequate 
skills could be found, the com- 
pany would take on It) more 

The third Junction of 
overtime is to e3se short-term 
bottlenecks and thus to main- 
tain delivery performance when 
sales demand fluctuates. This 
occurs in all sections, but is 
the principal cause of overtime 
among semi-skilled assembly 
workers and in quality control. 
It is unpopular with many 
employees because it is called 
for at short notice and is 
unequally distributed. With 
current overall levels of 
demand, sufficient recruitment 
to eliminate overtime would he 
costly and unjustified. However, 
improved control of production 
flows would reduce fluctuations 
iu demand on assembly. Then 
recruitment of six men could be 

So. in -theory, this company 
could increase its male manual 
workforce by 20 people nr 2 
per cent (14 skilled men and 
six semi-skilled). A similar 
scale of increase in the' 
engineering industry generally 
would reduce manual unemploy- 
ment in engineering by about 
40 per cent, which is a signifi- 
cant contribution. But. in 
practice, this cannot happen. 
Most of the place* to be filled 
are for skilled people who are 
not generally available. 

Reductions in overtime which 
do not affect product costs 
would require substantial re- 
ductions in individual earnings, 
since total pay would have to 
be shared between more people. 
This would seriously disturb the 
compromises by which em- 
ployers and employees over- 
come the deficiencies of wage 
structures which cannot be put 
right because nf pay policies. 

This, in turn, would be widely 
unacceptable to the people con- 
cerned, who would either leave 
or become disaffected. Com- 
pensating them by special pay- 
ments would increase casts. 
The upshot uf all this would 
be a reduction in the firm's 
international competitiveness, 
and employment . prospects. 
This is essentially the reason 
the Department of Employment 
gives for rejecting a shortening 
in the basic working week, but 

it also applies to its alternative 
proposal — the reduction of 

Even if these problems could 
be solved, employers would be 
slow to recruit because over- 
time provides a cushion against 
the effects of a drop in demand 
and an insurance against 
redundancy; this they want to 
avoid because of its effect on 
motivation and morale. The 

costs of redundancy are sifinifl- 
cant but of lesser importance. 

Among smaller employers 
with no personnel departments, 
the perceived unfairness, pub- 
lic humiliation and financial 
risks of the Employment Pro- 
tection Act are major 
hindrances. Better to pay £1.200 
a year overtime premiums to 
four trusted employees to work 
ten hours each extra a week 
than risk £1,000 compensation 
and much aggravation by 
taking on an extra man of un- 
known calibre and personality. 

The factors which make work- 
sharing by reducing overtime 
difficult are among ihe most 
important of those which slow 
up the process of improving the 
competitiveness of UK industry 
— lack of confidence, shortage 
of skilled people and distorted 
wage structures. To make over- 
time reductions a national 
objective would be like attack- 
ing one symptom of a potenti- 
ally fatal disease by methods 
which would exacerbate other 
more dangerous effects. At the 1 
least, overtime provides for 1 
flexibility during a process of 



Surely we should concentrate 
on providing the conditions 
under which the competitive- 
ness of products and services 
can be improved? This would 
generate wealth and make it 
easier to shar<‘ • *rk. If social 
pressures do that work 
sharing should start earlier 
rather than later, the debate on 
how this might be done should 
start within the constraints used 
in this article. The costs and 
competitiveness of the organisa- 
tions concerned must not be 
affected. They provide the 
wealth which makes work shar- 
ing possible. They should uot 
be inhibited in that process. 

Eric Heuch is a senior consul- 
tant, and David Kingston is 
manager, business economics i 
division, of PA International j 
Management Consultants. 

People Development in Develop- 
ing Countries by Ross Mat he- 

son: Associated Business 

Programmes. £9.95 
"WHY IS it that each new ex- 
pert insists on ignoring what 
the expert before bim has 
achieved? In he comes, secure 
in his inexperience, blinded by 
his enthusiasm — mouth open 
and mind closed. Every time.” 

Such a criticism would be 
condemnation enough if It were 
made about professional con- 
sultants called in by companies 
in Britain, but when applied to 
the expatriate expert recruited 
fur an operation overseas it 
assumes a new significance. 

It helps tii explain why the 
governments uf ihird world 
countries are so often wazy of 
hiring s-taff from the West, and 
illustrates one of the problems 
facing the personnel manager 
working overseas for a company 
suffering from a shortage of 
indigenous expertise. 

This book aims to reduce the 
likelihood of such recruitment 
mistakes and attempts to show 
how. through an imaginative 
use of manpower planning and 
training, people development, 
a company setting up an 
operation in a developing 
country can successfully plan 
to minimise its reliance on 
overseas personnel. 

Written by a man who has 
spent most of his working life 
in personnel management, much 
of it abroad for Philips, Uni- 
lever. and BP, the strengths of 
the book tie in the useful detail 
it gives on how best to harness 
indigenous talent. It does, how- 
ever, suffer from a disease not 
unfamiliar to sociologists — the 
mystification caused by an over- 
reliance nn jargon. Witness the 
use of pbrases like 1 "cross- 
cultural applicability” nr 
“recognition of this in-context 
fact-regarding people develop- 

But in spite of the .language 
the message comes through. The 
starting point for the successful 
development of people in emerg- 
ing countries, he says, is to have 
precise information op the poli- 
tical, cultural and economic 
factors peculiar to each country, 
and in particular the need to 
i understand the behaviour of 
local people and their pattern 
of life. 

He quotes the example of a 
workforce which was unwilling 
i to accept orders until the com- 
Ipany found out that the fore- 
man it had hired did not have 
tbe authority accorded with 
belonging to the local aristo- 
cracy. The answer was to 
recruit a competent member of 
j a nearby royal family. 

He advises on how to cope 
with the problem of what he 
calls "the national uniqueness 

syndrome," an example of 
which might be the man who, 
resenting the changes brought 
to the indigenous way of life 
'by the operations of a Western 
company, says: “We have our 
own ways and methods and will 
use them to seek change as we 
have done in the past” The 
author argues that, while 
respecting national differences, 
the answer is to play up the 
common denominators between 
countries, particularly in con- 
nection with, say. the mutual 
need to achieve industrial 
wealth and expertise. 

While* j structured approach 
tn training is essential the 
author warns against the use 
of loo much theory. Local 
example coupled with what he 
calls the “ de-sophistication ” of 
new knowledge (stripping it of 
unnecessary Western sophistica- 
tion) is the most productive. 

On interviewing and selection 
of staff he warns against the 
inclination automatically to 
regard those who speak good 
English as best suited for the 
job. The author believes that 
this has caused more employ- 
ment mistakes overseas than 
any other. 

On the recruitment of ex- 
patriate staff he emphasises the 
need to exercise extreme care 
by choosing only those indi- 
viduals who are most likely to 
be able to understand and 
integrate with the local environ- 
ment and population. He paints 
a picture of the ideal recruit 
whose foremost desire is to 
work within another culture 
coupled with a genuine interest 
in helping others to develop. 

No doubt many expatriates 
would find this chapter rather 
amusing. In practice the com- 
pany nearly always comes first, 
and overseas personnel are 
often noted more for their 
clannishness than their ability 
to integrate. 

While containing much of 
value to the man who is con- 
cerned with personnel manage- 
ment in developing countries 
the book does however tend to 
fall into the trap of many 
similar attempts to distil a life- 
time’s work Into both a theo- 
retical and a practical guide. 
As a result it is neither one 
nor the other. With an array 
nr somewhat simplistic exer- 
cises, tables and charts, some 
chapters read like snatches 
from a college training manual, 
while others concentrate on the 
generalities without the illu- 
mination of concrete example. 

Some discussion of individual 
companies’ experiences in set- 
ting up operations In the 
developing world would have 
helped provide the meat the 
book lacks. 

Richard Cowper 

. *!•*«*? 
a • • * ? J . 'S'? 

i M : «* 

Do you have 
vacancies for 


Y)u could find just the people you need 
through the Careers Service. 

tondredtonsis the lifting capacity of them. v. 

* ' ■ - ^‘Craftsman”. - _ of anv liner vessel under 

T* T ~ - i ; - It is the greatest lifting capacity ot any 

the British flag- ■ Harrison Line Fleet which 

. -carriage of ^ 1 vy ^^ eC ^|i se d assignment*; often 

- - . ,.p t 

; - - "=c icout^s to carry oot a smgl J9 - 

V 'massive transformer- fculk carriers and 

Heavylift vessel* ^ ^portent part m 

- •; ; ~ coiw^tirional liner . a+pr 

r V .. fkom . 

' T;.-/ ; Bat a shipping^ and highly 

_ \ are ^V are hacked by modem 

‘ ‘v:- ~ ‘ for the aU-'unportanr 

documentation. Unlike the elephant, Harrisons is not 

the largest of its kind . 

But, with the finest ships, skilled personnel and a 
tradition of 125 years of caring for cargo, Harrison is 
one of- the finest shipping lines today. 

4? \ r 

•Ll, . yl? 

Harrison Line 


Thos &Jas, Harrison Ltd, Mersey Chambers, Liverpool L2 8UF 
Thos & Jaa, Harrison Ltd, 15 Devonshire Sq, London EC2M 4HA 

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S'"; .f^nanSSl 

Fast and slow 





The cassette discount 
battle arrives 

IT IS almost as difficult to be 
critical of international co- 
operation as it is to disparage 
-virtue or motherhood. The fact 
remains that international co- 
ordination of policies is not 
-always the good thing it is sup- 
posed to be. Everythin? depends 
:on how good is the final strategy 
which emerges. Some kinds of 
international co-ordination may 
• make things worse, even from 
ithe point r»f view of the world 
-as a whole. 

- - These thoughts are triggered 
-off by the campaign of the 

Americans, the British 3nd the 
OECD in Paris for co-ordinated 
•growth strategies in the Western 

world — a matter nf which we 

may expect to hear a grezt deal 
at the Bonn summit in July. 

Originally we had the “loco- 

- motive “ theory. The thought 
‘was That the three strongest 
economies — the U.S.. Germany 
and Japan — should he stimulated 
nwefoer. thus pulling alonE the 

rest of the world behind them. 
When this went out of fashion, 
because of the inability of the 
Americans to get out in front 
because of the plight of the 
dollar, we hart instead the con- 
uv rheorv. This stated that all 
*t»e Western economies should 
inove Forward together — an un- 
fortunate metaphor to those who 
’iem ember .that a convoy travels 
at the speed of the slowest. 

There is a specific reason why 
present cries of alarm about a 
slowing down of world growth 
may he overdone. This is that 
jmernislional trade depends not 
just on the movement of output 
in the industrial countries, but on 
how that output is distributed. 
The key fact is that although 
the US. Is responsible for nearly 
40 per cent of the total output 
of OECD countries, its share of 
OECD trade is less than 20 per 
cent. Europe on the other hand 
is responsible for 45 per cent of 
OECD iiutput hut gelling on for 
70 oer cent of total trade. 

World trade 


- r :JHetaphor aside, is it really a 
jjtfod thing that industrial 
economies should expand toaether 
in. a cwtwnon movement? Cyclical 
ffnetua lions remain with us. and 
the utopia of steady advance is 
far dMHant This being so. 
^intries w-hich expand together 
jwjll also contract together. Surely 
this win lead fo bigger flucrua- 
.tfrms and disturbances than if 
different countries are in dif- 
ferent phases. 

>1; A boom common to all coun- 
tries is likely to put fteary 
jrressure hoth on commodity 
iprtces and on domestic costs: 

a recession will he more 
^severe if rhe whole world is near 
:£he bottom at the same time. 

Thi* point is brought out very 
clearly by David Morrison in the 
Phillip* and Drew Market 
Review. World trade, according 
to the new index he uses. h3S 
normally srown 2} times as fast 
as total OECD output. But in 
1P7R it onlv grew twice as fast, 
and in < a; th® same rate. 
The main reason for this was 
that file U.S„ which is much less 
dependent on trade, took ihe 
lead in the recovery and Euro- 
pean countries had a more 
helarod and feebler upsurse. 
World trade therefore lan- 
euichpd. riesnite a growth of 
flECn production well up to p3St 
trends. This helns to explain 
whv prntec’ionict nrejwure* have 
been sn strnne In an Howard 
phace ot fh« KiKlnotc rvcle, But 
now The* f he growth lead is nacs. 
ins to Europe, we can look for- 
ward to an improvement in trade 
prn e nect« even »f total OE‘*Tt 
niitnu; flavs «|("htly in its 
upward momenlum. 

An all-knowing and all- 
powerful global authority miehi 
want to «ynch r onise .the evpan- 
slnn ra'“ e f)t rtiffnront rountriec 

— sr, that they are not all in 
phase and sn that the combined 

o\n.nitinn rate tnL-e« |ern grerjimt 
the different rnntrihiitinn of d Jf - 
Ternfif rniintriec rn wnrirf tra ri ® 
But ir one if ccenfieij a hour the 
feafihiljiv of such il'tra-fine 
Mining it mi?hf he better for 
the sumniir leaders to for«et 
growth targe* « and concent rale 
on other objectives. 

THE ONLY certainty about the 
videocassette business is the 
uncertainly of the countless pre- 
dictions made about it. Reliable 
statistics, in particular, are 
notoriously hard to come by— yet 
anyone whose business is likely 
to be remotely affected by video- 
cassettes is desperately eager to 
get hold of some hard facts. 

The leading manufacturers— 
notably Philips. Sony and JVC 
— have been reticent if not un- 
reliable in providing information. 
Film producers, television com- 
panies. and even book publishers 
would like to know the current 
UK population of videocassette 
machines — because therein lies 
the Clue to a new distribution 
chain for programmes. But 

reliable figures do not exist and 
even official statistics have been 
nest to useless — as. For example, 
the lumping together of video 
with audio in the British import 
figures until 197S, when a distinc- 
tion was at last recognised. 

New machines 


TRADE IN 1976 





Share of OTCD GNp % 




Share of OECD exports % 






T966-76 1976 

1977 1978 




(1) Growth in world trade 

of aH poods 

+9 +10} 

+ 4 +5 

+ 6} 

(2) Growth in 


■ +31 + 5* 

+4 +3} 


ft) World Trade Multiplier 

2} 2 

1 H 


»atio I-t- 2 rounded 

I Sourer: Phill/ft and Drew. June Market Review 

By piecing together various 
scraps of evidence, it seems 
likely that the US. population 
of videocassctle machines to date 
is somewhere around ini. and 
likewise in Japan. The UK figure 
is possible 80-000. The latter, 
however, is comprised mostly of 
Philips VCR and Sony U-Matic 
machines — which have been 
available now for a few years; 
whereas the U.S. and Japanese 
statistics are being increasingly 
influenced by ihe new generation 
of videocassette recorders — the 
JVC VHS and the Sony Beiamax. 

These new machines are only 
just beginning to appear in 
British shops, although JVC has 
predicted that it will sell lOfi.noO 
units in the UK this year. This 
is half the total sales figure for 
all makes that Philips estimates 
will he sold in the whole of 
Europe this year. Some observers 
regard the JVC figure as 

Nonetheless. JVC is certainly 
challenging its rivals. In the 
U S., where Sony’s Beiamax is 
the only serious contender, a 
supplier of pre-proa ram mod cas- 
settes — Magnetic Video — reports 
that the 65:35 ratio of demand 
in favour of Rptamax cassettes 
has now dropped to evens. JVC 
itself however, claims 85 per cent 
of the US market. 

One consequence of such pro- 
duct rivalry tha: manufacturers 
claimed would never happen in 
Britain — prire-cuttinc— has now 
arrived on these shores. The most 
scriouslv threatened system, the 
Philips VCR. is now being offered 
hy REW. the hi-fi chain store, 
in their Tottenham Court Road 
branch at £639 — a reduction nf 
well over £Wft. This offer also 
includes two free videocassettes 
and a discounted price for 
further cassettes. 

Even the newlv-arrivcd . JVC 
VHS is being offered by REW 
and Lasky's for .shout £50 
below list price, and the pros- 
pect of much greater reductions 
hefore the end of the year now 
seems likely. 

The one certainly is that this 
new medium has now arrived— 
currently helped by a surfeit of 
World Cup soccer which for 
some yielded a dilemma over 
which match to follow - for others 
a desperate need for any kind 
of pre-recorded programme as 
long as it wasn’t fool hall. 

Vidoocasselte machines ar* 
now available io Briuin from 
some of ihe TV rental companies, 
and early predictions suggest 
that rental may provide Ihe fuel 
for the marketing explosion that 
will follow. In the V.S.. whore 
TV rental is not established. The 
research firm Arthur D. LlrrJe 
claims lhat 25 per cent of people 
polled in a survey wanted to 
own a unit, but only eight per 
cent were prepared to pay the 
already discounted price of S795 
- — an opportunity for rental to 
take a foothold. 

Another U.S. research firm. 
Frost and Sullivan. estimate^ lhat 
sales there will climh !■> 97 per 
cent in the period 1P77-8P. This 
cannot be all a case of electronic 
excitation; in Sony's first 
quarter Jesuits to January 31, 
1978. videotape recorder sales 
rose 51.9 per cent against the 
figures For the previous year 
(while colour TV set sales were 
down 4.2 per cent). 

Confusing the picture is, of 
course, the proliferation of 
differing tape standard' nuking 
it impossible to play a videotape 
cassette on rival makes of 
machine. Not only have Philips 
introduced, in their lenqer-play 
N 1700 challenge to the Japanese, 
a machine that is incompatible 
with ihe earlier Philips VCR — 
bui Sony's Beiamax is different 
from Us more professional 
U-Matic. The VHS can record 
and play tn different standards 
fnr two. three and f"ur hour 
tapes. Grundig has a new rival 
system on the way with fnur- 
hnur tapes, and BASF is still 
planning to introduce a totally 
different concept known as LVR 
(for Longitudinal Video Record- 

To this must be added the 
further complication of national 
television standards, such as the 
French SECAM system which is 
not compatible with PAL (used 
in Britain, and most of Western 
Europe ) and the American NTSC 
system — different again (and 
used in Japan). 

It means that the market for 
pre-recorded videocassettes is 
hopelessly fragmented, if there 
is a market for software at alL 
The relatively high cost of video- 
tape as a raw material and as 2 
svsiem for mass duplication is 
unlikely to challenge the low- 
cost video disc when it becomes 
commercially available. The 
future for videocassettes must be 
set. therefore, in serving what 
Sony have called the “time shift” 
concept— merely a method of 
delaying home TV viewing of 
programmes to a time that suits 
the viewer. 

Certainly this is the current 
motivation for buyers, because 
pre-programmed videocassettes 
are just not available in any sig- 
nificant range of choice so far. 
The W. H. Smith bookshop chain 
is known to favour video discs 
as more suitable for programme 
sales as well as being easier t6 
handle, display and store. 

If the time-shift concept pre- 
rails. it implies that the 
standardisation problem is of no 
real consequence. Every home 
will record its own programmes 
i currently illegal) from the TV 
set for later use on the same 
machine. Only the broadcasters 
may lose out finding that their 
audiences have been liberated 
from the monotonous duplication 
of programmes on different 

The broadcasters are re- 
ported to have just made a deal 
with the creative unions in res- 
pect of residual payments for 
video sales. Could this mean 
that the prime market for an 
expensive TV programme might 
eventually come through video- 
gram sales — with broadcast 
television a repeat market? It 
is now beginning to happen to 
the cinema, so the present pat- 
tern nf broadcast television ma5 r 
not be immune from such a 
revolution in the future. 

CAPTAIN RYAN\ PRICE, whos&^ewinarfcet 
fine colts Whitstead and GairiofflC^Boy. : who io ay 
did well to take third places in tered by tn? 
tbe Grand Prix de-Paris and Prix..$nfghmg 
d Ispahan respectively at - the’; Admiral 
weekend, should do we & cba-^venL;,at 
skierably nearer, home 1 • Lj.' 

afternoon., j \ V.v '«ecarillo. 

At Brighton’s hilltop coung; :in ' 

only a few miles from his FindbiF'heeTt xno n i n s u 

--than the three 

. - same might 


r .- . • "M'rfdtm of last 

BY DOMIhBC WJGAJ* ^vwfe he Jiardv.. 


- gent on sob 

establishment, Price could -scpfE/^nts V Mis? 
with both Scbweppervflseehce -last two or. 
and Mecarilio. . • : . .■./.'v^/W&Jle Ryan. 

The ; first of the- two to fcri&^toers' taWi 
the field as the Comedy Star c6tt: winn ers sinc“ ■ 

Scbweppervescence. one oithel/.Lewis o ecu pi 

yearlings (including the eeasrm.’s . . p § 

fastest juvenile, Schwcppeshfoe'.^.f net Ql - 
Lad I bought sir cheaply by. Pric^-’-.V' 
last autumn. ... . .' jjc iftng T.ATTE 

On his only previous, appear* TJanrfn^. Bo art? 
an ce. -Schweppervesceoce; among :-tbe other nati* n 
the nmners for the EastbouraeCffes in express 
Stakes, did not rtm at ai^hadTj Cbvernnient's’ — 
at Bath, finishing seveaffi. ^tJ^rks * should; 
be hi nd Bolide . . after ;• nfordn^ financial loss- '-a 
green from • the'ootset' ; ■■'■-.•..f.'-^rprice of having. 

The Fin don colt;WiIIyhzvfe grants amalga" , '” arf 

derived considerable^ 'bei^eRrn Hr. Martin ;L — 

from that ontihg back fo. jAprar^bf the finance comet 
and with little to. beat herfe shO-: Lak e District-Boaru, 
cess seems on . foe. cards. ■ .£120.01)0: in' -tb 

I take him to open foe fc^lirfs 

with a victory^ -over CUye iifas “ too high a 
Brittain’s recently disappointmffVjtdmlnistrative- 

‘.1^5 i V : * r rt 

M < ?: v uH- *5 


I I mil Bill ., , • V 





a , ns- to-s- 

iTj Kiil.J' Mi' All -Ku 

D- Kv(‘ 

CC— Th*?Mi Kntra accept certain 
canH by telephone or at box offtca. 'j 


COLISEUM. Credit t»rd» OI4jq 52581 
RtMMUKMt 01- MS i ltl. 


Cm. 7.30. Mat. Sau. and ived. 

Ton': and Tomor: gwnao anV 

ion . «na iww. ““ 

T*»ur.. Fri. a np Sat-: OtaeOfcJtiW.*- to* 

, Steeping Seatrtr. Swta ava^jMe MaK- 
July J. 5 and B on it.-, with OUTC^f 

Seats available. 

Nrfeyev will 'dante at yrefy Pert.- ; 



S IN ^v 


. Must dehnif 
hEA MAJESJTrtS. _ — 


with Cere* 
> i .■ - Directed by BUR 

, - AGAT HA- CHRUCm.5, - 

". r.TP T ray 

hUn. io Thuj£ 9.0. Flit. 

Steam returns to the rails 

TEN YEARS after the official 
British Bail steam train run. the 
Cumbrian Coast Express will 
leave Blackpool North Station 
today at 10.05 to arrive at Sel la- 
field. near Windscale. f'timhria. 
powered by steam. 

The all first-class train, to run 
evpry Tuesday until August 29. 
will he hauled from Blackpool 
tn Carn forth by die.^ei and from 
Carn forth by a steam locomotive. 

Two famous locomotives will 
be used for the steam-hauled sec- 
tion of the route: LNER 4472 
Flying Scotsman and LNER 4498 
Sir N igel Gresley. Both are 
housed at foe Steam town Rail- 
way Museum. Carnforth. and are 
privately owned. 

The return to steam power is 
aimed at attracting holiday- 
makers and children who may 
never have seen steam locomo- 
tives at work. 


MO-... Tucs- Thur*. «Jd FrL * 
uvcH and &sta. at fi.10 ana . d.-aJ- 
in a Spectacular Conwdy * 

Your b<?« chance to see • The : TVjp| 
Ronnies Review " at the Lon don PalteHnhi 
is to book now for the Extra PwlunnaMes 
on SumMv. 15th July at- 5 A 8. 


LYRIC THEATRE. CC. 01-^37_36fl« 
E*. 8.0. Mat. Thors. 3-0. 5a L 5.0. A. 4.30 


F1LUMINA l ' * 

i.lMcr. I:;--.- i i ■ 

T>/ Radio 

T Indicates programme in 
black and uhile. 

BBC 1 

6.40 am Open University i Ultra 
High Frequency only!. 1.00 pm 
Te'thi r Tir 1JJ0 Ragtime. . 1.43 
"News. 1.55 Wimbledon Lawn 
Tennis Championships. 4 18 
Re^innal News for England 
(except London). 4.20 Play 
■ School i as BBC 2 ami. 4.45 
We Are the Chamnions TOTS. 5.10 
.Wild! rack. 5.35 The Wombles. 

*■ 5.40 News. 

Nationwide i London and 
South-East only). 
Wimbledon Tennis. 

The Feather and Father 

The Standard. 


Sunday With Th* Children 
(a report on the effect 
marriage break-ups have 
on Ihe children involved i. 
Cabaret Show time w ith 
Tony Christie. 


Play Golf. 


12.05 am Weather Reeional News. 

All Regions as BBC 1 except at 
the following times:— 

Wales— 5.55 pm Wales Today, 
fi. 1 5-6.40 Heddlw. 6.40 .Inin BBC 1 
i Wimbledon). 12.05 am News and 
Weather for Wales. 

Scotland — 5.55-6.15 pm Report- 
ing Scotland- 12.05 am News and 
Weather for Scotland. 

Northern Ireland — 4.1S-4.20 pm 
Norrhern Ireland News. 
Scene Around Six. 12.05 am 
News and Weather for Northern 

England — 5.55-6.15 pm Look 
East t Norwich): Look North 
(Leeds. Manchester. Newcastle); 
Midlands Today (Birmingham): 
Points West (Bristol): South 
Today (Southampton): Spotlight 
South-West (Plymouth). 

7.00 Survival 1-31 Renon W>st Headlines. 1-25 Report 

7-30 Charlie's Anceis. 

S .n , f d „ POTVJTe 5 . 2 D CTOSSTOaOS. B.uQ Kecort 

-w Lire Begins at forty. fc .u Report Wales. 4 JO Emraenlalt 

S.00 Will Shakespeare. Farm. 7.00 OmOrau of the Sexes. 

10.00 News. -V Crrnru /Wales — As RT\' General 

ID. 30 Palestine. Serrlco erc-W: uo-l_2S pm Penawdan 

12.00 The Andy Williams Show. ?>yy«ion > Dydd. 4J8 «ui Maw. 
12^5 am Close: A painting by iaSTnJ WorfiTSii £S- 

\an Gogh with music by 12 w am crlehnty Sq uares. 

Mozart. HTV Wact— Ax WTV General Service 

■ 11 ,n A t n .j A n excepr: 120-130 pm Report West Head 

All IBA Regions as London i lasB . US4.30 Report West. 

except at the following tunes: — SCOTTISH 

A(\G| I A UJD am Lifestyle. 1J5 pm Hews and 

Roar, Report: 545 Cartoon. 5 20 Cross- 
U.20 am The Voire in the Fingers, roads. 5.00 Srorland Today. hJO Wbal’s 
L2S pm Anglia News. 2.00 Honsepartr. r Problem? 7.00 Emnterdale Farm 
5JJ Emmvrdale Farm. *.00 About Anulja 7J0 Hello Good Evemna Welcome. 84# 
12 06 witness to Yesterday. 12J0 am The Cockoo Walla. 12M Ute CalL 

AnthoioEv. SOUTHERN 

A 1 V - 10-20 am The Nature of Things. UB pm 

Z0.2D am Boner. 2-20 pm A TV New*- Snuibem News 2.00 Houseparty. 2 IS 
desk. 0.05 Pri>f<-Mor Falthaxar 5.15 Boutbsport Presents Cricket: Sussex v. 
Lavente and Shirley 6J» ATV Today -Wow Zealand. 505 Sin bad Junior. SOD 
7-00 Emmerdale Farm 12J8 Someth Ins :Ci-ossro»rls. too Day br Day mclndingi 
DtfferenL -Souihsport 7.00 Eramerdale Farm. 12J0 

Southern News Extra. 

BORDER tyivf tfpq 

IB JO am Certain Women. tUO pm a X 1 v t 1 llj 

Border News. 2-00 Houseoarty 5X5" 5.25 am The Good Word followed br 
Those Wonderful TV Times, fc.00 Look- North East News Headlines. 10.30 Elusive 
around Tuesday. 7.00 Emnterdale Farm. Geisha L2n pm North East News and 
*— JO Border New* Summary. Look a round. 5X5 In Search of . . .Naxl 

e-i » , Plunder. 6.00 Northern Life. 7410 Emitter- 

CHAiNiNEL • dale Farm. 12.00 Epilogue. 

238 pnt Channel Lunchtime News aOd T1T ctcd 

Whai’s On Where. S.15 Those Wonderfn] ULMtK 

*rv Times. LOO Report at Sis. 7J0 10X0 am On Seven Rills They Built a 

Walking Westward. 7JO Rafferty. 10X8 City. 10.50 Sketches or Scotland. 1X0 poi 
C nannel Late News. 123X1 What Abdut Lunchtime. 4.U Ulster Nears Headlines, 
the Workers. 12X5 a.m. Visages de 5X5 Friends of Man. 63X1 Ulster Tele- 
France. vision News. 6X5 Crossroads. 6X0 

. - T Reports. bM Taking Shape, 7 JO Emrart 

OKAMPIAN dale Farm. 10-30 Honan's Heroes. 11.00 

oxs a.m. FirM Thin:. 10X0 Cash sad Old Honse. New Home. 11X5 News at 
Company. 1X0 pm Grampian News Hedd- Bedtime 
lines. 5X5 Those Wonderful TV TtnAs. lA/ccnriA/ A nyv 

6.00 Grampian Today. 6X0 The Electric W to ItrAftU 

Theatre Show. 12J0 F.'fleciions. 1105 am lixo am Clue Club. IB.® Never Go 
Grampian Laie Nlchi Headlines. with strangers. 12X7 pm Gas Htmcybon’s 

rn, i Birthdays. 1X8 Westward News Headlines. 

OK A (N A DA 5.15 Those Wonderful TV Tiroes. bJK 

10.20 Sklppy. 10.45 Lai* ai Life. JXS5 Westward Diary. 7X0 Walking Westward 
Kathy's Quu. 1X0 pm This Is Your Rrghi. 7X8 Rafferty. UX8 Westward Late News. 
5X0 Whal’s New. 5X5 Crossroads. 6J0 liOO What About the Workers. 12X5 am 
Granada ReporTi 6X0 Emmerdale Farm. Faith for Life. 

W What About the Workers. l2J0tam Vrtoi'dJTDc- 

A Little Night Music wiih tbe BoWles lUKIVonUKt 

Brothers. ’ 10X0 am Hemdale Half-Hour. 10X0 

i>-n , The Best Kept Secret L20 pm Calendar 

HIV ; News. 5X5 Those Wonderful TV HraeA 

10.20 an* Today Mexico— Tomorrow (he 4.00 Calendar lEmlcr Moor and Belmont 
World. 18X0 Wild. Wild World of Animals, editions). 1M Emmerdale Farm. 

BBC 2 

am Open University. 

Play School. 

pm Wimbledon Tennis 

News on 2. 


Sin? Country. 

Our Mutual Friend. 

Late News on 2. 

Wimbledon highlights. 
Closedown reading. 



. 1 Give an account of some 

* French writer (8) 

' 5 Double if courageous outside 

■:9 Looks slyly how to follow a 
.• miniature performance (4-4) 

10 Chevron awarded for expedi- 

■j tion in tbe south-east {6 1 

11 Occurrence I had to follow 
. with a note at night (8) 

12 Cut back fruit to daughter 

* initially |6i 

14 Gamble cleaners take (10) 

15 Commit an offence for each 

* favourite to be worthy of ( 10 1 

22 A vicar went in front? That's 
bad! (6) 

23 Scamp creating disease in 
K plants? (8) 

^4 Cite me in return? It's. 
' sickeniog! 16) 

45 Suggest being friendly (8) 

26 Note the bit of rope lo tie up 
^ animals (6) 

27 Full-back is to finish io delay 

r ; <fi) 


'll Bird seen in Ihe sky at night 
' ... ( 6 ) 

2 . . . and transfix another bird 
we hear (6) 

’3 To put in a new location I 
I must appear in hybrid trees 
; (6) J , 

4 Weapon used In second-class 
thoroughfare's sign (5-6) 

6 Attract attention to payment 
on capital (8) 

7 Get the bearings on a 
learner from the east (8) 

8 Coloured black or navy 
throughout (44) 

13 Disease contracted in sleep 
etc. (10) 

15 A soft mother or father— 
that’s, obvious (8) 

16 Die with General outside In 

slope (8) 

17 Be nice ahnut Expeditionary 
Force and the vicar’s living 
( 8 ) ■ 

19 J get in a mess and fixe (6> 

20 Ron aground off Fleet Street 
( 6 ) 

21 Being behind-band a vicar 
must accept receiver (6) 

9J0 am A Present from the 
I Past. 10.00 Plain Sailing. 10.20 
The Undersea Adventures of 
Captain Nemo. 10.30 An Asian 
Notebook. .. 11.00 Popeye. 11.03 
Goostrey — a Village. 12.00 Iasi 
i Noho. 12.10 pm Rainbow. 12.11) 

, Parents Day. 1. 00 News plus FT 
index. 1.20 Help! 1 JO Crown 
j Court. 2.00 After Noon. 225 
Red Letter Day. 3.20 Once In a 
[ Lifetime. 4.05 Cartoon Time. 4X0 
Breakers. 4.45 Extraordinary. 5.15 
I The Brady Bunch. 

5.45 News. 

I 6.00 Thames at 6. 

6.35 Crossroads. 

RADIO 1 « 7 “ 

(S) Stereophonic broMkast 
Z Medium Wave 
(VHP) Very High Frtqvency 
5.00 am As Radio 3. 742 Dave Lee 
Travis. MB' Sunod B*t«. UX1 Paul 
Burnett Including 12X0 pm NcwebrAL 
2X0 Tony Blackburn. 4X1 Ktt Jensen 
Including 5-30 KewsbeaL 7J0 Snorts Desk 
•Joins Radio 2>. 18X2 John Peel iSi. 
12-O0-2-CI2 am As Radio 2. 

VHF Ratios l ami 2-5.00 am WKk 
Radio X including 1X5 pm Good Lisienmu. 
2212 Pete Murray's Opnu -House iS i 
teonnnued from Radio 2.>. 2X0 
David Allan iS ■. 4X0 Wasccmc-rs' Walk 
•also SOOkllz. HSHkllz). 4 AS John Dunn 
• SL 7 M With Radio 3. UX0 With Radio 
l. 2Z09-ZK am With Radio Z. 

and the Rise of Ed roar an Music ( S). 
10J50 Solo Olio Rrclial iSi. 11.4V BBC 
Welsh Symphony Orcb< »ra fffl. V 10 * ml 
Ne«. L05 The Ans worldwide 1X5 

Sibnhert from BrLrtol iS). 2Uf Mostc 
tor Recorder* and Piano i'Si O-00 A 
L’Ule Ltglu Music <Si. a. ao Ann^Sbasby 
and Richard McMahon piano redial. P«rt 
I i Si 4.25 Interval Rear] mg. 4J5fRecJial. 
Mil 2. 5X5 Jaa Today iS). S-« Rdracward 
Bound (Si. 6.05 Nc>s. 5x8 Homeward 
Round r continued’ bxo LifcUnu: Work 
and Training 7. JO rMk-etnrs’ 7 Camnr. 

I. M JOfbirrn, Liil ami the LSD.j part 1: 
Rrx>th(ivcn ISi. 8 40 A PromJiade of 
Renorts. 4.00 Jodium. Lffiand flM* LSD, 
part 2: Brahms iS-. 10 . do Aler McCmrca 
’ml Diana RI58 In " V-nus anq Adonis.” 
IV DO Spaninh Sniuu "Si. UJ5 New*. 

II. 48-U.C Tonight's Schubert Sous 'S»- 
R"d‘o 3 VHF only— 4.OO-7.00 bm Open 

Solution to Puzzle No. 3,702 


□ sREinHraE 
amaa bqsgqsqqesig 

□ a n Ba.B . b 
aansHca : □□ do rq 

0 B B. DEB 

0QS0SS1 EnnaaaE 
ra n HQ a s h 

naninaHHBHn. nsan 
a n a q □ 0 Q -a 
QHnsn HBC0053aH0 

ns a b a □ q h 

BEflEIBfflng BSBHas 

RADIO 2 I ’ 5Mm and VHF 

5.00 am News Snmmatr. 5-02 Richard 
Vaushan *Si with Tbe Early Show 
Including 6-l£ Pause tor ThougbL 7X2 
T'-rry Wocan >Si Including «X7 Ranng 
Bulletin and BAS Paine tor ThauchL 10.02 
loiin Timpson tSa. 12X5 pm Waggoners' 
Walk. 12X0 Peie Murray's Citicn House 
iffl icontluued on VHFi incloduiK 1A5 
Soons Desk. 2X2 wimhlcdon 7k including 
L45, 1C Sports Desk, 4X0 WagKOncrs’ 
Walk is* VHP., 4L45 i®. ».<e Sport* 
.Desk. 72D Polk 7S rs>. 7X0 Sports Desk. 
TX3 On ihe nurd Beat IS». 8.02 Some* 
mins io H ember Me By (Si. 0X2 Amnng 
Your Souvenirs tSi. 4X5 Sports Desk. 
’3.02 ThnH* In a Row. 10X0 The srepine 
Saga 11X2 Rrtau Mniihew introduces 
'lyinil Slldalght Including 12.80 ficus. 
1. 00-2.02 am News Summary. 

RADIO 3 464m. Stereo & VHF 

ttXS> weather. 7X0 News. 7.85 Over- 
ture (5). 8.00 News. 1.05 Morning Con- 
cert <S>. 9-00 News. 9X5 This Week's 
Composer: flan* (S). 4-B Piainsoog 

S.40 Serendipity. 5X5 Weather: programme 
news. 4X8 News. 6X0 Many a Slip. 7.N 
Neva 7X5 The Archers. 7X0 Time for 
Verse. 7X0 Kaleidoscope: Henry 

Moore talks about his Ideas and the 
important laBuenca on bln work. SJO 
Jocfanm, LR1 and the LSO las Radio 3) 
•Si. 4X9 Weather. UX0 -The World 
Tonight. 10X0 The News Quia 'Si. 11.00 
A Book al Bedtime. 2L15 The Financial 
World Tomsht. 11X0 Today In Parlia- 
ment. 12X0 News.. 

COMING: HOME (X). Sep. progs. MonT- 
Sat. 1.30, 4.45. 8.10 ' Sun.^lXO. 7.45. 
Seats may Be. booked In advance tor 8.10 
prop.. M&n.-Frf. A aH .protrs. Sat. A- Sun. 

CRITERION, gjo 3215. CC. 83S 1071-3. 
Evm B.o.-Sats. 5.30. 0.30 Thurs 3.0. 


'VERY FUNNY." S. Tel. 

Eras. 7X0. Sunday next until June 30.. 



DRURY LANE. 9T-S36 8108. ...r, 

, 0 °- r&SSsTSin- “ 

"A rare bmstatlira loyoui as 
stunner." Sunday Times 


From Liaoning, anna. 

“A rare bmrastating Joyous, astonish km 
stunner." Sunday Times. 

Red'o 3 VHF Wily— 4.98-7X0 



434m. 330m, 285m slid VHF 

6X5 urn News. 6X7 Farming Today. 
6X5 Up lo the Hour. 7XO News. W® 
Today. 1X5 Up io ibr Hour i continued) 
locludinz Tboacht for ihr- Dar. tXO News- 
> U Today. 8XS Vcsu-rday In Parliament. 
4X0 News. 4X5 Tuesday r a0 *>• 
Notes. 10.85 Sin* a Song" at _ . . /S). 
10.10 Dally Service, lo as Uonrinz Story. 
U.00 News. 11X5 Thirty-Minute Theatre 
iS). 11X5 Profile. lXoo News. 12X2 pm 
You and Yours. 22X9 Desert Island Discs. 
17J5 Woaiher: procram me news. LM 
The world al One. ljjj The Archers. 
1.45 Woman's Hour include 2X8482 
N«ws. X® i.lsu-n viTh Mother. 9X8 
News. 3.10 Questions in the Prime Minis- 
ler " live " from ih«- House of Cortronns 
1X5 Money Box. 4.M News. 4X5 Gar- 
deners' Ques'ion Tim- viihs the We« 
MWlands 4 15 P»nrr Time: “ Mann ion ” 
by Sir Waiter Scott 5.00 PM RepcrM- 

BBC Radio London 

2()6m and 94 3 VHF 
5X8 am As Radio 2. 6J0 Rush Hour. 
4X0 Loudon Live 12X3 pm Call In. 2X3 
308 Showcase. 4X3 Home Rub. 6XS Look. 
Stop. Listen. 7X0 Black Londoners. 0X0 
Ail That Jan. 11X3 Late Night London. 
12.00 as Radio 2. 12.85 am Question Tunc 
from the House of Commons. UBOm: 
As Radio 2. 

DUCHESS. _ 836 8243. Mon. IO Thur*. 
Evenings B,00 Frl.. Sat. 6 15 & 5. on 

"The nutslhr Is stunning." Daily Tel. 
Bth Sente! tonal Year 

-ROYAL COURT.' "730 T74S. • Air Coad: 
Eves. 8. Stt. S A 8-30. . , . 


.by Bill Mom#es. 

- A burnished display ol farce." Tms. 

DUKC OR YORK'S . . 01-936 Si 22. 

Evenings 8 00.' Mar, Wed.. Sat. 3-0. 
■ In Jullaa Mitchetl’a 

■•Brill.antW witty . . . no on» shaulrt 
mis* it.* Harold Hon son iDramai. Instant 
credit earo reservations. Dinner bm 
Too- price Seat £7.00, 

ROYALTY. Credit. Canos 01-405 8004. 
MondayTIftirsdav Evenings 8XO. Friday 
5. 30 and 8.45. Sacorfovs- 3.00 and B.oo. 
London critic*- w» BILLY -DANIELS In 
■ • Best Musical cf 1377 

Bookings accepted. Maior credit cards. 
Special reduced fates -for matinees (ter 
n limited period only}. 

SAVOY ™^ CONTI1 £-« J 
WHOSE LIFE is or Atfryum 

London Broadcasting 

261m and )7J VHF 
5X8 am Morn Hut Music. 6X8 AM: Nan- 
llop news, Ititonnatlon. trawl, sport. 
1X0 Brian Hayes Show. 1.M pm LBC 
Reports. 3X0 George Gale's 3 o;aock 
CalL 4X0 LBC Reports iramlnucsi. 8 08 
A/icr Eigbi with lu GOcftrisr. 9X8 Wtsfir- 
Uoe with Bryn Jones UQ am Night 
Extra with Adrian Scott. 

FORTUNE, 836 2732. Ew. a.OO. Tnurs. 3 
, _Sar. 5.00 and a.OO. 

Muriel Pevlow as M1 «C MaRPLE In 
third Groat Year 

Per . cobma 
' t&e-" r . cm. - 

TO SEE IT.’" Gdn: 

EV8S. it A0. Frl. and Sat. 5.45 and. BAS 

:auick THEATRE. CC. 01 -836 rsoi 
EvsTa.OO. Mat. Wed. 3.0. Sat. 5X0. 8.3o 

jjBKWS®- c o xc fe L r 

shaptesbury: -cc. . sse bsbb. 

Shaftesbury 'Ave WC2 (High Holbom and} 
Evgs. at A .JOHN REARDON In 

"This musical has everything. ” S. Mir. 
Mats. NOW TUE5. A SAT. 5.0 
All- seats at £S. £2. £1. 

Credit Cart Bapklnos S36- 6SB7. 

Capital Radio 

IMjr and 95.8 VHF 

ADD am Peter You tie's Breakfast Show 
»Si. 4.80 Michael Aspel l5». 12.00 Dave 
Cash (Si. 3X8 pm Roeer Som (Si 7.00 
London Today iSi. 7 JO Adrian Love's 
Open Line (S). 4X0 Nicky Hornes Your 
Mniher Wnnldn'i Like Ir >S, 1XX0 Tony 
Myall’s Late Show (S). 2.00 am Mike 
Smith’s Night Flixht fS>. 

GLOBE THEATRE. . 01-437 159j 

Ergs 8.15, Wed. 3.0. Sac 8.0. BJg 
ALAN AYCKBOURN'S new comedy 

Tula must, be the hanoteat laughter- 
maker ,n London." D. Tel. - An ktoiU- 
(iblv enlovawe evenin g." Sunda y Timev 


Prev Tomer. 7 . 30 . Ooen,- Thw. 7.0 
.Sub. evg* 7 . 30 . Mat. Sat. 2 .S 0 . 
HINDLE WAKES by Stonier Houghton. 




'01-388 1334^ 

Evenfngs 7.30. Mate, Wed. 2.30. 


Its CRBlftv-ls undimlmsbed," S. Tima. 
" A superlative east." Punch. 

Low Prices. Easy Parking. 

STRAND. 01-83& 2880. Eventagc B.tHL 
MaL 0_sp. 


LAUGHTER- MAKE* r ; .t;. 
GOOD SEATS £4.00-11.00. 


•promaur - .. . v ■ ,4J» 

ResUwnla] Property 106 >.*W 

Appolntowbts > 1X0- iL66 

Business & Investment .. 

Opporttrnftici.-CotDbrAtitm- - 
■ Loans, PrsdBCdUn- ; ■ J 

Capacity; Ruslne ssts - •'v— 

Eor. Sale/Wained.- ;. :.>l -. W .;.46»; 
Education, Sofots. - - .-V- 

Ctatrscfrf Trader*,' - v <". 

Personal T .0 ardenimt . VT.--.4iS: > 3SM 
’HofeU Bb£Tntr£f . ' . 

Book Publishers,.-. -' - V: 

- XKiuhtwBi star ■ 4ft- AnhuiBt.taa4)l.',:'- 
. .. 0-58 per shiBfe CoWriir‘on ea^3,' . 

• ' 'jHirfurOter: dshtUF-Wtor^ w'r V- 

Classified AdvetUsjckncnt^ : i 
Managier/j T,'^-y 
- ElaasciaC ^Eiz&cs^t’ 

. 10, Canhoii- SfreeD-EC4?- 


. .. 

t 67 



Financial Times Tuesday June 27 i 978 | 

Afdeburgh Festival 

The final weekend 


doubi a T^! r ’ 

197s festival Gordon ”iwS i woul ? have meant 

foe solo ftitV loss of Lw& Triptych, on 

Sptet s, and two hSnSTw^hl S 0 ^ 0 *.? 3 ’ J"itte n £or Peter 
most substantial of thei^ Like KnSJSr H' e Cr ®®%^“ p< ^ cr 
Ariadne and. UTOdbon, earlier P 1 1 f 43> - ?ut 

members in CroSeV f s P rov «l to be a fluent but 

ol works for omeertaiite w£d ShtehYh? forj ? etta ^ e in 

instrument and smaU eoseiUbie h£ £M? e « mu ! ,c ! efiined t0 bear 
Tkelhns a proerammpn^ ii k *? iation to the poems, even 
theirs, . it . run^'not^oecessaritv ou? m1f.S C li able fr 2 m P®" 1 with ’ 

‘SStKl^^eK W? 

Sti^w^^e^Ste 111 ■ tfa ?’ pr *? en J imbu * d °Sfii the tones 

a^-sss? * a« 

rfS&ffVSE Rave next 

sfflSSHT-, s^*saisw5 

. aramansation in musical ham and with snatches of fnlk 

SgJSSSSSS^?^ SSi In I&flJ SfuS 1 o°r I 
Bnt^t^SiS^nn 11 ed £* ,s a L 5ove - Perhaps one was put I 

HlftS “1 

SE£". ‘Lli. 1 ? . »? d »m Phrases and fisnrations (the, 
st ring pamt a clopdless diatonic! cS^^o ] ' 

Wsr’ asr-sss 
32SrS r ssap 5 

lowest register, accidentals begin Sike sonne&Mfo ^ 

S^SSK - A aKSEaps 

3“ irn,puons * dX; ^C^SnR-srss; 

•• ^ , ■ . . revisited its past. The staging. 

^Sf 018 ?® ® always soonfe by Pimlico School, in Richard 

’ i an(i ^ cI , s Gre eson's revival of the original 
°r.u.^ e ^. 0 °' 4s «.- a i. ® leaT, y Colin Graham production, was 

T?** 1 ba , rr ® d energetic, and full of cheerful 
•AJSTSS^. “P 1 *?’ prec seIy goodwill (matched by a large 
iSRSLSf sections, audience}. But under John 

all interlock in a fabric of cool Lubbock the musical aide of 

“525? ^£ ,bgsed e Ju en wb * n ^‘“g 5 ™ a little thin^looded; 
dlstoctive substance than the the tunes seemed less catchy 

s™ t $5!? ^ ,a 8 - central tb ® dramatic devices less iD- 
a Sf w Jf' b 2 le j P^* 06 Is genious, than they used to. It 
lnadly ach ‘ ev *d- A doubt, on a W0U ld be foolish to suggest that 

8ht the festival put aside for even 

™ u ^ : of . **Penence seemed a short while Its legacy of 
fiJSL3£”'£iS aI together less Britten music-theatre pieces (for 
distinctive substance that the want of a better catchpenny 


Albert Hall 

. ,, , , fully employed in their perform 

On Thursday, It was beautifully ance. Perhaps what is heeded is 
played by Richard Adeney, who a new style of Britten produc- 
requested the piece from the tion, stripped of all deference 
composer, and by Contrapuncti to the past (though not uqfaith- 
under Michael Lankester. Crosse's f U l to the works themselves) in 
familiar champion. I should have the manner of the:' Covent 
ilked a second performance after Garden Peter Grimes. At the 
the interval, for the pleasure of moment the works — and for that 
hearing those floating, shining matter the festival itself— seem 
opening sounds again, and for not to have quite completed an 
the opportunity of resolving (or, uneasy period of transition. 

‘Mrs. Isabel Styler-Tas,’ Salvador Dali, 1945 

National Portrait Gallery 

20th Century Portraits 


I approached the exhibition of traiture. and they mostly do with ing the component lines of the organiser understandably into 
20th Century Portraits at the more than a degree of conde- face around the canvas also.Jterrible difficulties) of his wife 
Carlton House Terrace exten- scension. it is then who chose That was soon to follow. land niece, the microcosm of an 
sion of the National Portrait the model. There ure great These three images sum jtf enclosed domestic world of pure 


exhibition pinch, those whose cheque books 



innocence wMc^'opens^he 1 w ork ^ hen J** e f . or summed up for me what was are Targe enough to cause the Denfiuliiin^from the whom we know all too little in 

attractively " b cb he wrote are stm so gain- perhaps the central dilemma of Red Sea to divide. It -is indeed s2£L this country. An early work. 

fullv emnlnved in thmr uerfnrm- the as aj, institution. Its refreshing to see one oF o«r .*? *“???. ® r , in the expressionist vein, of 

future, of necessity, depends on national collections placing its J“ ie 2 P Adolf Uzarski anticipates the 

the viability of the portrait as problems so coolly and openly JJJ a .Pg?' a Jf.. p f ; r * JJJfiJiS tnthL savage power of his greatest 
an art form in tins century, before the public. There is ■'V m *. h }f” J ct ®“ critiques of the decadent society 

Nothing can equal the crushing overall an air of resignation. The 2 s i£mKL nf^ttvfe o?th2 of between-the-Wars Germany, 
sense of aesthetic collapse than placing of photographs, bril- 10 °®2f e J0J «=> nin * hlJie 01 ^ The painter-poet is cruelly 
the NPG’s post-1900 collection, liantiy chosen, side by side is ““"If 1 * 1 ' ... satirised with his neck and hands 

something which the founders of indicative of the only way for- What struck me most was that [j ke ta | ons clawing the air while 
the gallery in the 1850's could Ward for the gallery short of ! he abstraction in fact took to an behind tim world has been 
never have anticipated. Robin wasteful accumulation of the extreme the mannerist theory of ,-kunged to a baroque nightmare 
Gibson, the exhibition's organi- aethetic dross which has been its the portrait as depicting the fantasy reminiscent of Chirico, 
ser. has politely included a few policy for too much of this idea of a person rather than an Fear ' never ^ems far from a 
of them— Patrick Heron's T. S. century. actuality. Albert Gieize's !ut jj, ese likenesses. Indeed 

Eliot or Ullbricbfs Mountbatten Tlic central theme of the Stravinsky of 1914 is an accuniu- raC(St me morable of the 
— tu bang alongside van Dongen, exhibition, that of the impact lation of at tributes. It celebrates porLra j lfi do. in fact dwell on 
Dali and Kirchner but on the and resolution of abstractionism through 1 its forms and shapes ^ vulnerability of human kind 
the whole their inclusion seems on portraiture, is succintlv the angular harmonies of the ral ^ er lharu as j Q u, e past> j ls 
less an act of selection than of summed up for us by the series composer in much the same way immortality by means of the 
charity or downright desparation. 0 f three portraits of Ambrose that it is incidental in a portrait bru ,. h and chisel. Dali's Mrs 
No .display could more conclu- vollard. the dealer, by Renoir, by Rigaud that it is a King of i sabe | styler-Tas presents an 

dvpnr TtrftlTft that tha "flltllTP nF ..nd l?At- Ttlroncfl r'llktat* ikon 1 dill lifa ■ . . ... 

Great Claret List 

1961 -1977 Vintages 

Before Claret prices continue upwards do consider a 
purchase to fill any empty space. 

Per doz. botts. 

Ref. . . Incl. VJLT. 

FJ 1 1961 CH. GALON, Montague St. Emilion. 

A bargain. 

FJ- 2 1967 CH. du LYONNAT, Lussac SL 

• Emilion. Rich tasting. 

FJV3 19 70 CH. LA ROSE FIGEAC, PomeroL 


FJ 4 1971 CH. GRAND JOUR. Bordeaux 
Superieur. Very good value. 

FJ 5 1971 CH. MARRIN, St. Emilion. 

Concentrated sense of class. 

FJ 6 1972 CH. HAUT FONTET. St Emilion, 

• A Grand Cru of startling elegance. 

FJ 7 1973 CH. MONTROSE, 2nd Growth SL 
Estephe. Finn, full and special. 

FJ 8 1974 CH. PA VIE, Grand Cru St Emilion. 

The best St- Emilion from a large tasting. 

FJ 9 1975 CH. GOBINEAU, Bordeaux Sup. 

Powerful and big taste-delivery July. 

FJ10 1976 CH. du VIEUX (XOS. MontajpK St, 
gmiiinn- Purchased entire ly on quality. 

Special shipment exclusive^ ''to Laytons 

■J gMffiSS SSSSS^r"*-^ 

aSSaffSSBsr ass 

in mo uth. .. 

' -S12 1977 CH. Cos d'ESTOUBNELi 2nd Growtl, ^ 
y ; SL. Estephe 5 caacs-l-. £3S^0 

’’.'i ' Available in bond London Autumn 1979 
;• ' - V. AT Durand deUvery charged at cost 

'^ on availability. 

Toting Note: Limited crop of lovely col our.f mi ty 
will drink around 1984/5. 











Minimum Order: ^^g^^pBEE^xcept one-case 
Delivery: (except Cos. 
orders charged £1.50 extra. 

^ . r T cHIDGEY or J. RADCLIFFE at 

*aB**k a a®MS&r“ “ 

.... .. . *uudiu. luc ucjici, ug muuii, yj ml isahel btyier-ras presents an 

sivelyprove that the future of Bonnard and Picasso. For France rather than a still life OV er-uoholstered profile in the 
the NPG depends on the multi- Renoir, Vollard is a renaissance of symbols. Where such symbols renaissance manner face to face 
media of film and photography, conoisseur fingering with are lacking the modern abstract with he rseIF transmuted into an 
and that portraiture, in the old pleasure a sculpture like a painter, unlike his predecessor, ^vreimboldo fantasy of rocks and 
sense, jvill form only an occas- member of the Medici court. The quickly runs into trouble. Not cypress trees with a path wind- 
ional brilliant flash. picture is full of reminiscences even the genius of Picasso can i ng it5 way j nl0 fa er brain. 

Why A this? It is precisely as of the renaissance tradition. For match the Man Ray photography Luc jen Freud's Girl with Hoses. 
Gibson points out, -not only the Bonnard he is just a dumpy, of Lee Miller m its ability to his first V jf e . Kitty, is an essay 
hopelessness of the British when sleepy, balding middle-aged man eusnare her beauty and vogtie j n anticipated terror. The eyes 
it comes to commissioning par- slumped nursing a cat on n sofa chic. stare transfixed, the lips part 

traits to take any adventurous in a- studio. For Picasso in Otherwise it is an anthology and a hand lightly clasps the 

line but al^o the retreat of the 1909-10 he is a pattern of i-ubist through which to browse. There thorny stem of a rose, 

artists themselves into the rectangles and lines, still clearly is a marvellous Vuillard (not *jfHh-nont»rv 

closed world of their own cirele. recognisable because the painter strictly -.peaking a portrait, a 

If a modern' artist touches por- has stopped just short of explod- definition which gets its 

M«V. Pride of Greenwich 

Mike Westbrook Brass Band 


Pianist / composer / arranger/ inch's sound system on Friday spectrum the band covers. The 
bandleader/euphonium player the Brass Band’s two sets wens interpretations, usually with 
Mike. Westbrook is one of t Jeas . t an accurate represent- tninipei. tenor horn, two 
Britain’s most diversified jazz - =, . , . f euphoniums, drums and s 

Meats— apart from music he ,,on of ^ style. An unfuss.. phone nenor or sopr3no)i are 

has also collaborated in several arrangement 01 John Lewis: never gimmicky. The band has 
theatrical and mixed media pro- “Django." for trombone, lenoi an aural compulsiveness. Its in- 
ductions. In recent months be horn, trumpet, piano, tenor-sax lent is to entertain and please. 
seems to have been concentrating and percussion, and John Humour, subtle or heavy. i*» oever 
on his six-piece Brass Band, a Coltrane’s “Naima" represented far away. It was simply a pity 
group which can be safely termed the modern side of the band's :hat on Friday the previously 
unique. Not because it com- programme. Contrasting heavily mentioned unsatisfactory sound 
prises versatile multi-instrument- was the folk song “Bart ferny robbed some of the songs of 
alia is who also sing but because Fair” jn wbii-h Phil Minton's iheir impact. 

•of its astonishingly eclectic sometimes- raucous, other times Fur a clearer, cleaner audition, 
repertoire. This ranges from jazz soft, voice vividly recalled the Hie hand its latest LP Goose 
standards to settings of William throbbing ambiance nr the .■•ance 1 original Records. ORA 
Blake poems, from Brecht/Weill ancient West Smilbfleld fair. "‘Hi. from which several of 
music to hymns. In fact almost Also heard were Mike West- i-riday's items were taken, is a 
anything which comes under the brook compositions, a version of more than satisfactory substi- 
broad category of music. “ Alabamasong " from Brecht unc. Like the Brass Band itself 

This immensely approachable, and Weill's Mali upon rip suug in n<* LP is imaginative and totally 
instantly likeable band appears emphatic German, and a beguil- -.'Upyabl.*. 

lh diverse locations — recently it ing. dumb-blonde rendition by boast* ."Sauce Ls also the til le nf 
played three afternoons outside Kate Westbrook of Rodgers and n.e band’> jazz cabaret which it is 

the Serpentine Gallery in Ken- Hart's “ Ten Cents a Dant-e.'' p-rformin? at the Upen Space 

sington Gardens. Last weekend it These titles illustrate the wide from July 4 lo 9. 
opened a series of Friday even- 
ing cruises from Westminster 
Pier,, organised by Ogun Promcn 
tions and promising to feature. 

until August 4, some of the best , . .... „ . , 

Ineai musicians most in the A £1.3m. appeal was launched the histone building by 
mXrJktioni yesterday to reequip the Old modernising the stage, auditor- 

mouero ' Vic “ as an exciting and effective ium. theatre equipment and 

dr * n '* cenLre for the 1980s and pubtic areas. 

proud about the Prtde of Green- beyond/ . u ,* a i s „ hoped to provide an 

Following the departure of the endo ••mem fund to enable the 
National Theatre Company for theatre and its new* resident 
its new South Bank home in company lo continue to stage 
1976, Prospect Theatre Company effectively the best of classical 
has continued the theatre's and I; rieal drama, 
classical tradition, Pro-pect has. in recent years. 

In October, Toby Robertson, player! an increasingly impuitant 
director of Prospect, became role in presenting classical and 
director of the Old Vie. charged modem theatre on tour througb- 
with bringing the theatre back out the LT-C and abroad, 
to the forefront of the British With the Old Vie as its metro- 
theatrical scene. politan base, it is envisaged that 

The money is needed to re vita- this activity can be extended. 

Open-air courtyard entertainment 

The ‘20th-century portrait at 
Its best does not therefore, ever 
seek to give its sitter reassur- 
ance t>r pay homage to the outer 
surfaces, it aims instead to tear 
away the mask and this is a 
challenge which requires not 
only exceptional bravery on the 
part of the artist but even more 
of the much-maligned victim. 
Gome back Gainsborough, ail is 

Liaoning Acrobats- 


The programme does not less diverse in trickery than ifite 
enable one to identify him, but Shanghai ensemble who were 

, J .. here a few years ago, but their 

an unknown geoms perches excellence is beyond question;- 
feet above ground on a unicycle, Sooie 0 f capers defy belief, 
and with every appearance of a. girl does a band-stand cm 
enjoying himself, tosses a dozen another girl's head, her own bead 
bowls with one foot so that they topped with rice-bowls which she 
nestle one inside another on bis removes with her feet; a lady 
head. Then, because life has conjuror produces a shoal of five 
been getting dull, be adds a cup gold-fish from thin air. finishing 
and spoon, and a tea-pot with fid. wiib one the size of a healthy 
and somehow contrives to pour mackerel. Four boys slither eel- 
a drink from the pot into a cup. like through hoops:, a young man 

He is, of course, a Chinese rides a bicycle with the bravura 
acrobat, one of the troupe from that has always marked Chinese 
Liaoning who arc at the- Albert horsemanship; a girl, twirling 
Hall for the rest of this week, ten plates on bamboo rods. Ts 
and with his colleagues he poised upon a table which 
demonstrates that combination of balances upon two glass vases, 
skill, strength and dizzying vir- and bends back to retrieve'-'* 
tuosiry that has ever been the peony with her teeth, 
attribute of China’s folk enter- it is all predictably impossible, 
lainers. Supreme ability in any and presented with the nicest 
form is enjoyable, and the cas- and most unsclf-conscious air. 
cade of tricks and balances, of There is an accompanying 
back-flips and clowning and a orchestra: the lion dance is 
demure nonchalance as ixnprob- superlatively done; and, as our 
abilities crowd on each other's illustration shows, the Chinese 
heel, make for a very jolly even- have invented the bicycle made 
ing. The company is somewhat for 12. - 

The Liaoning Acrobats 

Lamard Burt 

Festival Hall 



^ tM 

Two concertos introduced far behind.) It took the breath 
Mendelssohn's Italian symphony away not with its lift, hut with 
at the London Symphony ils forward thrust:’ a horizontal 
Orchestra's concert on Sunday impetus, true as an arzpw. 
under Andr£ Previn — the last of wonderfully fluent, scrupulously 
Mozart’s lour little horn con- dear. 

certos K495. delivered with Only In the Romanze did one 
smooth and creamy tone, urbane sometimes miss ' the finer 
and pleasing, by the LSD's prin- moments of heartiifL of simple 
cipal horn, David Cripps: and grandeur and pathos neither to 
Chopin’s E minor piano concerto, left nor right of centre. : bo t 
thrown off with spectacular exactly true — is dogged, consigl- 
briUiance. bright as a gem. by g n t top-noting bright as ■"■'a 
Vladimir Ashkenazy: clarion, really the best way To 

It was a glittering account, cut deal with the melody rigSt 
quick and dean. It was rarely through the movement, frOin 
buoyant — in tbe sense of a start to finish? But Ashkemuy’s 
buoyancy that can lift a phrase finale was a sensation: articula- 
suddenly through the clouds and tion like crystal, rhythms lapped 
up into the open sky (as Lipatti with fire — very exciting, and of 
in his famous recorded perform- its kind very impressive. Previn's 
ance lifts measures 2,1-24 of the accompaniment was a model of 
Romanze dizzyingly up and away poise and tact: discreet 1 as need 
into clearest blue, leaving . earth be, forward when it ought r 

Prospect at the Old Vic 

The working population in and 
around the EC4 area of London 
is to be provided with an 11- 
week season of free lunchtime 
entertainment to be held each 
Friday, from 1-1.45 pm in tbe 
open-air courtyard of the W. H. 
Smith building in New Fetter 

The weekly entertainment, 
commencing on Friday, June 30 
and ending on Friday September 
8, will follow the tradition of 
London street performers from 
bygone days, with performances 
by poets, groups playing early 
music, dancers, jazz musicians 
and travelling actors. ' 

This is the first-ever season of 
its kind arranged by W. H. 
Smith, who moved into their 
purpose-built head office in 1976 
and decided that the unusually 
shaped courtyard would lend 
itself to this type of professional 

The first lunchtime interlude 
will be a performance by mem- 
bers of the Bubble Theatre Com- 
pany. Established in 1972 at the 
instigation of the Greater London 
Alls Association, the travelling 
Bubble Theatre has since played 
to almost 200,000 people with 37 
shows io most of the 32 London 




' ■ - 

1977 Annual General Meeting of Shareholders 
held in Rome on 28th April, 1978 

The Shareholders in the Annual General Total deposits exceeded Italian Lire 5,580 
Meeting have adopted the reports and billion of which ’Italian Lire 4;080 billion 
the balance sheet as at 31.12.77 which were provided by individual depositors.-^ 

Lending almost reached UL2.700 billion. 
The number of accounts was in the re- 
gion of 774,000. Due to considerable - ~ 
provisions, both statutory and voluntary, 
the bank's own funds have now reached 
Italian Lire 126 billion. The net profit 
allows a dividend of Italian Lire 175 to 
be paid for each share of Lit. 500 par 
value as from 2nd May 1978. 

During 1977 new sub-branches were 
opened in Bari, Borgaro Torinese and 
Carmagnola thus bringing the total num- 
ber of branches and sub-branches 
throughout Italy to 145. A new Repre- 
sentative Office has been established in 
Teheran in addition to those in Frankfurt, 
London, New York, Paris and Tokyo. The 
staff at 31st December 1 977 consisted of 
6,385 employees. 

shows a profit of Italian Lire 10,443 
million. The Bank's policy during the 
past year pursued the objective of ensur- 
ing that deposit and lending rates were 
compatible both with the directives of 
the monetary authorities and with the 
conflicting requirements of depositors 
and borrowers, without affecting the 
bank's income and expenditure account. 
In order to maintain stability and cost 
control the bank continued its policy of 
diversifying its sources of deposits of 
which individual s provided 73.5 whilst 
21 .2 U 0 and 5.3% were provided by com- 
panies and the public sector respectively. 
The bank's lending was directed mainly 
at medium and small borrowers i.e. 93.1 % 
to companies, 3.7% and 3.2% to indi- 
viduals and the public sector respectively. 

Financial Highlights 

TOTAL DEPOSITS 5,580.337,233,305 LIRE 



4,080,125,607,903 LIRE 
2,567,663,956,151 LIRE 
125,922,455,696 LIRE 
10,443,063,023 LIRE 

*(after approval of Shareholders’ General Meeting to which on May 2nd. 1978 will be added the 
new dividends accrued on shares of Bank’s property) 

■■ % ' " ■■■■■ 

- -.^v 

" f-' 



Telegrams: Finantlmo, London PS4. Telex: 886341/2, 883897 
Telephone; Ot-245 8000 

Tuesday June 27 1978 


BY PAUL LENDVAI, Vienna Correspondent 


HE FORGOTTEN TALKS of D th 1 e P°. siti ^; 

would have to reduce its 

U1C UUSlll'lll. -- . ... XT * ITA. 

But they also say that with- t™ops “ore toanJ^ATO, 
of NATO and Warsaw Pact out an agreement 

in Vienna for a reduction 

should be an 

out an agreement "ii actual ft That there ... 

figures of military manpower Jt equal common collective ceiling 

for SEVERAL years the Apart from a £4 a week rise last 
™rernmen\ haVbe™ finding it y«r ar.d a further 5 per cent 

mffl'ewcumw to ewept'senlor chairmens salaries have been “”|d, e Vrind airmen from each be 

ST.JZ This Tt™ Boyle ,V enmiSnee h^redT- ?“*„ - 
. - . i. . ......utinnr nnHnr mnnHprf the Government that he tn r aa..h natinnai mn- December 16 .... to 

forces m central Europe are u be moss]hle l0 reach a on the manpower of. each side. 
ihnwms some life at last. The mulua]]v accnptai)le agreement without placing numerical 
eastern side has moved some ^ rc d»icing forces and arms- limits on individual ■ national ■■ 
way ^■frds^e^esternposi- mc . nU in { Europe, forces: and ■ ' ' 

Ition that a ceiling nf 900.0U0 Furthermoro> ^ of[L . r fli ]i s far • That the reduction should 

carried out in two phases, 

,-ith first stage cuts confined 

=■ the rnnaitinns^ -under «£-», fiTSi nations, con- ^JSZTJS this weTslaUnne^n £ ££* 

corporations have In work are ™.'nf n.Uonalised lUH* “"h™ far the Russians mail, S "‘' “The East .11 along insisted on 

r'trrsa.f. s - =-? v r - PS ? ^jffwss r ryr? ssa 

offered are ton low. On the first tions like Bntish Steel and the Tarasov on June S remains tn allowed to the Ji direct sanction 

point the complaints are well Post Office would presumably be established It may he some ^^pi^sTthe US. Belgium, su?erioritv. ■ us negotiator* aiHfl ™ter fl^4«lh ‘the Wist 

known-lack of clear objee- g0 up even more. indication of how difficult the ^ ritain P Canada, We st Germany. pr P ssed ‘for across-the-board . 2?, men and. .“to . 

rives, arbitrary inl 9 r ^L . The publication of these l^sk !S , going to be . isj- et hcrla n ds. and Luxembnurg comprehensive reductions by j^ty fhJ tMH of & ^-l%S3)ttO to reach comm^tt the:; 

from Ministers, uninformed figures has produced a predict- Tarasovs proposal cam*, at the . NATO and ih* c —- *-* - -•» -• Soviet divisions (i n stea d or oafrauajjuu — - ■ — j - — »--- iu>ant,iae 4 -m* iwnvn»»^ 

criticism from members nf a £ ]e reaclion f roni one or two 172nd plenary meeting of the Unjon * Czechoslovak! 

Parliament and others. Many lrade union leaders . But 19-nation conference, which Germany| and Poland 

" 38 ' CU " W ™ w " Pact > wh,cn ,wvc wanted to impose national ceil- }™ 

■ t0 Tt« itS TiPffotiSSS ITsm* 1 . -In essence/ it 1-oftereiLi 
supenonty. Its negotiators tli ' Rntrirt ™rter -Jtoattfl 

A Phantom fighter takes®*: West has. 

...... with nuclear capabnit|^' sin* , as these,-; 


businessmen have felt that in lvbe ther j^ey are accurately re- began. as long ago 
those circumstances it would be decl j n q their members' views is 30 1973. 

impossible to do an effective 
job. The salary level has usually 
been a secondary consideration. 

open to question. Electricians , Mr - Tarasnv ^c la imed^thdit The other etS h t states from the 
in British Steel or British Air- given 

fnr example, expect response 

businessmen arc prepared to 
accept rates of pay which arc 
abnut half the level of com- 
parable jobs in the private 



as electricians in the private | Union 

the proposals pre- 

a pos'tuc Western two al | iani;es have a restricted gn^made' it difficult, perhaps 6150 

the 29,000 American troops .tij^to'be removed. from 

event of 

but an important _«nc. Not many ^Jy’ihe same'reVes of minted on, behalf he Soviet sU ]^ rdcr UDderil , nd both Z°pensite f f°or freSuI t? ^ ± 

Czechoslovakia. — . . . 

«ector. Why sh«-uid senior Germany, anti Poland could ^ Var ^! >e P a" t m0 v 
managers be any different ? negot^irms d^cisivdy remember the starting P^ons 

Certainly the timing ** tuwards an agreement After <>* ^ch side. The Wom sought 

■ Unuu o« .he presence* by' 0 inclosing Q other ..lowing V - ‘ ' • 

[orres - ....... _ SfaSM* • • : 

Wage Restraint 

awkward for the Government. 

but it is always awkward. One 

some in 

itial hesitation and even reduce the disparity 

., Cfl „nht freeze on national fbrees ^ ore specific commitments with.^ 

t c - 1 - ! was in practice specifically d 7 0 - - ' - 

i tv of about . . Di.ni4.nnAV., Tn *ygaiu 

aimed at the Bundeswehr. 

some conflicting 

siatemeius 150,000 troops and some lO.Ouh break the deadlock, NATO in th e proposal 

iTmal hr^ that th® first set day some Government will have '^ued by varmus^'authoriTativc tanks existing in the c P nt ^[ December, 1975, proposed the 

n Si be Ased i the coura2e 10 § ras P ^ ettle sources'' in Vienna. Washing- region m the East's favour. Its wjthdrawa | of lQ00 as . ta c tica l ™ 

tbp ririni’tnlp'5 ^and Dreoosals^ set and pay the chairmen the rate toni and Brussels. NATO spokes- ihreejnain demands were— and nuc]ear weapons , 54 aircraft 

- - - - , - w . ,„ c „ . 4 with nuclear capability, 36 

0 _ narionalisPd industries are Government, to its credit, had pact initiative both on and off © Any agreement shnn.d pro- Pershing missije launchers, and 

SriOTfinted B« that will lhe cnura?e 10 1 thc recnrd 35 a “ s ^?nificant vide for approximate P an ^,° b 29,000 troops from central 

Se time there is still a -ood corporations to charge a com- ve - tnwards lhc structure ground force Europe in return for the with- 

dc^il nf^disapreement abi^Jt the ?™ ( 'S £ E »"<i " ” f > he subs,anm " ^ ^ ^ — “ 

on the 


appropriate InstltuMnnal frame- Coverrmiem s hopes of a 
work and the furt) ,er period of pay restraint 

S 1 i.riSS "by'c™ m.; Ill ^ -Ai- by the 
I ne salary 15 - r correction of a gross anomaly 

" r,ear ' CUt - Tndnstrics ha« aRectinP a handful of senior 

shabbily treated. men - 

been very 

They have hcon made the pawns R enu „ nan 4 
nf successive attempts to win r A 

trade union compliance for The increase in salary might' 

wage restraint. Quite apart from be made more palatable — not I 

the disincentive effect on just to trade union leaders, but | 

potential remiits, the Goveni- to the public— if part of it tonk| 
ment's handling of top salaries t h e form of a bonus related tn 
has created bitterness among performance. The performance 
the current chairmen, which criteria could not be confined 
can hardly be good fnr perform- t0 profitability, especially in a 
ance nr for conductive rela- monopoly like the Post Office, 
tionships with Whitehall. and the formula would have to 

The matter has been fester- vary from corporation to 
ins for some time, particularly corporation. But the principle 
after the Government's decision of relating the chairman's 
not to implement the recoin- remuneration to his effective- 
mendatians made at the end of ness as a manager is surely 
1974 by the Top Salaries Re- worth examining. There are 
view Body, under the chairman- some members of the present 
ship of’ Lord Boyle. The Cabinet to whom financial' 
recommendation then was that incentives and large salaries are 
the- chairmen of British Steel “morally" repugnant, especi- 
and the Post Office should have ally in the public sector. The 
their salaries raised tn £40,000 Prime Minister ought to over- 
a year i from £23.100 and £21.100 rule them. Linfortunately. the 
respectively) and that the chances axe that he will decline 
chairmen of most of the other tn make a fight nf it and- the 
large state corporations should problem wili be deferred once 
go from £23.100 to £35,000. again. 


The Left wins 
in Iceland 


NATO Countries* 




0 • ■ ® 





drawal of an entire Soviet tank 
array of 68,000 troops and 1,700 
tanks from East Germany. Two 

• ;in uie uiuupivu v* • — » • fc --*Nh7 . *. • 

v,' forces such a5 f rentier ' guards would b complete/, a Second 
m T ‘ • v-jfljfi internal security units, still '■ 

Narrowed * ^-l»'the so-called grey are£of con- timing - - * • ; 

IidnUff CU Vjflletihe definitions.: Baf 

r£ SZm It ^ := I 

- Tli ll l if if ucuuiuuuoa.. T v*. - ~ ~ ,t— - - ■ • 

ii,. _ __ i- West claims' that- the. 'parfc.a^.s^^t4r^^*wape^ r «snre 

the gHp . '-^rtiilUtary units wereY'eXdudea 

' ‘ its estunates."^ * thiatr^fiat ift&ails v< n nd rtn i ptf 

somewhat closer rThe^ th^^cTsid^ « 

rithout chang- substantive -proposals . - of common / cottertiy?'- - ' 

Warsaw Pact 

9 0 « O o 0 

O ® 0 ® • 

tSf? -G35 CS5 

t£Z»7 OS 
GZ& 0BS 
CE? 4 Bf 



Relative strength 

Warsaw Pact 






♦Including Fnmch forces In the Federal Rwiddic of Gwm«w 

”™ -- new warsa 

Drevinus Western offer now mucn - xor uie m out -certain: , 

P Overshadowed by the conflicts the East accepted the principlj: wit h 0Ut providing for Indi^diial r 

at the Belgrade follow-up con- of collective rather than «5^^’ a tional subceiirogs. Bu.titifiirf . ^ 

!!*!*■ 5 F, irnne in cpruririr vidual national cetiings.and-the^ new formuTawouldtontain -is . .. 

cow, the Vienna talks were 
. deadlocked for almost two year& 

- -But- it is- important -to realist "total 

that the 

baric°groun^roritviSs powen tapJiasecMBe that 'wfly for 

i^£3S2 ore™? Sat within one year the Soviets' Sri reduSn. ipade td-«i*tiitter^ ^ 

was regularly held^on every 30,000 men (two divis/ons and mean in practice\ The West the ^htiral 
Thursda^ and the American th« ***** of an^er in . the German Bu^ 

and Soviet chief delegates also form of detached units.' plus an 340.000- soldiers. __ ... ■ -i- ■- a 

Smilariv* m?t on an iSoimal army corps command head- NA TO forces to 700.^ would 
basis It is at these informal quarters with support-service involve cutting the Budtteswehr 

encounters ^lasting for three tii units) . 1,000 tanks and 250 t0 300.000. If, subs%ntiy, 9^’W'W^hitionsalsoaB 
W hnurs If the Jespective infantry combat vehicles, in ^lateral reductions wex^nade a proof . that the ominous. teend 
private residences. .tha P t the exchange for a reduction of by another NATO menbS or towai^.-.pdnfrontation can be 
rpai harcainin" is done much u - s - forces by, 14,000 troops and jf a member were to withdraw reversed. v - A__ * 

M th^rhagrin nf theRomanians the withdrawal of 1,000 U-S. front, - '-the -alliance, &e ; T^^tt*e^e ; ^ simmer * . , 

who have" repeatedly criticised nuclear warheads and 90 air- Bundeswehr would only Kt recess m/midJuiy^is too short f [ T \ I 
Si' ^pra-Hce^ ^of holding Unofficial craft and missiles fas proposed allowed .to compensate for tialAta find serious thH | I || 

mporin'-s B hv the West 2i years ago). This 0 f the reduction, and moreover, ^Soviet concessions ^xe and 

Though formal Dronosals are tneans that the East has also would be forbidden to . increase ^ethet^theidiscrepwi^ ojdata 
fnSduced orffy it plenary accepted the principle of its sttenSOf over 340.QD0 evffllf % ;:be-^^BSgpd -the 
m«iin-s the %ro sides iiSum selected and differentiated the common collective ceiling of and 

each other in advance of any reductions of armaments. - the alliance as a whole remained count er-clalmSvtiie -ldnff^talled 

forthenming ImmiTtai'i It “as According to eastern fignres. the same. ... 

no surprise when NATO last the Soviet Union and the U.S. Apart from, prejudicing the decisivn «tage I .thqugb lt 

each *J?£ =2Sf»- S5S=“,^2.^ 


SadTb'LVdX S3 pub- ?~nn‘ r„““«™iTh.« ^SSnmUA anient 

which in any case had stationed In Central Europe by western ; Burope 

ICELAND FACES a period of Their success means that the 
political uncertaintv following People’s Alliance, which also 

the left-wing victory in 14 *“*».’ w } ]] n °I ^ * 11 
C .innHAnc be the seconrl largest party in 

Sundaj s D encral el. ct inns. thg Qew Par ij ainent After its 

Given the islands strategic stron o showing in last month's 
importance, it is hardly sur- niU nicipal elections, the People's 
prising that NATO planners Alliance had hoped to be the 
have been keeping an anxious doui j nan t force in a new CDali- 
eye on the poll s outcome, par- t | on government It had con- 
ticularly as the Marxist People is fidently been telling the 
Alliance, one of the main e i ec torate that a vote for parties 

the new Parliament After its n « wn watch 

^t mnR cViriurina in lact mnnth'el W0WH 1 

in New York 

-huni- nf itc nrnfit^ time to catch up. seeing that chief economist of Canadian 
abroad PC ° * ,Sie murder wa S £ 1ML.& job . investment hanker* Wood 

A fit slight Londoner, he is 1 has now been taken over by bis Gundy, for tiTinS a bit of purple 
already in charec of wor d-wide daughter Josephine, aged 26. prose. In his latest Fixed 
S™ “tLiat trading According to Frank’ Fitzsim: Income report_ he dares Wcom- 

victors, wants to take the 


the soon be put out to grass with international banking facilities members, 

In his first Press conference surrealistic vividness and all 

the canvas there are 
clusters of creative busyness... 

country out of NATO aud dia- "^''Ihc "Social ^old watch. But in fact he ia for offshore business. . “ »>■ orer' 

mantle the imporiant Democrats , would he a wasted sti jj on ] y 47 and has just been _ Though Joining as J cj m mons— who became leader clustwa u* wi«iu» c 

base at Keflavik But it is still yote Unlike the People's ^ ade 0 J e of the two deputy- Junior clerk, he completed thj ^^^^r tirTstill un- Here there is a plastic distor- 
duVon s e ^I y bout d the fi Iike"y AUiance ’ the Social chairmen of the bank he joined exaros of the^ Ins, ^tiKe ^of , Eai^ disaDOe arance of tion of reality and there a 

policies of the next government 

In Reykjavik. The new Govern- th7 Keflavik' base' l rn TnrnrnoVa ted.' ever. He secs bis promotion 

, • -ii k.«. f. iw, . M .iiti«n Mim**™. j Morgan and Co Incorporated. ever, ne secs . ms pmmtuv?. ^ s ~7: th Erea tpst organisation canvas it all seems to hang 

merit will have to be a coalition. u penplp , s A1 , iance waTlts _ * . , as meaning good old London ™ J? ESSZ b tn«Fh e r_ And vnu so a wav with 

aud a good deal „f negotiating :™™™m™t"with‘the 11 is ar “ Uaf ” y one . °J ^ has chalked one up “-though. 

S Sed!° tai<C P ' a “ bef ° re “ it wii. have 

SatTS^MpS i-S JVT - S “ Te“ W-S ,n a s ,ass dark,y 

God ever created.' 

together. And you go away with 
the feeling that the Canadian 
capital market is In very good 

You may also go away with 

Comphcat settle for a n P-ncgf otiatio n of the head office - s foreign exchange S can d ina\ia by a FrenchmiiL Royal warrants are reviewed the feeling that economist 

It is true that the left wing current defence agreement witn ^ intern ational treasury de- every iq years, meaning that Grant is waving his pamt- 

has done well. The outgoing Washington to ensure tnat tne partmenti he was the last to — r— snrae firms have jittery brushes around a bit wildly. 

Prime Minister, Mr. Geir Hall- U.S, in future keeps an even hide thal he was j ess than enirit 1 moments when their term 

\he lower prefile than it now does eothusiastic . »i thought Team Spirit 

grimsson, !;ader of \he lower pronie man n nun uii« enthusiastic. "I thought I cam opu i L comes up. According to that 

conservative Independence on the island. Foreign pn . was the financial centre A sente nce of life imprisonment most sober Toronto daily. The I act reSOrt 

Party, conceded defeat well however, was not the mam issue q£ ^ wcrld," he told me yes- has jusT been passe 5 on rony Globe and Mall, the outlook is rc3Wl 

before the final results were in the election campaign terday on the telephone from p rnvenza no, leader of T the so uncertain fnr Canadian Club Although Tor obvious reasons 

known. At the time he did so, conccntiated pn: marny o . b New York— adding that, though Teamsters Union in New Jersey, whisky that Canada's diplomats the names of the people 

the People’s Alliance and the land s dn ™ e :’J J p c ^aiior-imsson’s he believed London was still He was found gujj^ 0 £ cotspir- ^ pointedly ordering it at involved caniipt he revealed, 

left-of-centre Social Democrats lems and best, he was doing his best to jns in the murder* of a pnion Buckingham Palace receptions this story. I- have garnered in 

looked likely to win a combined rather chequered rccord in narro ^ the 
total of 28 aoata io the 60- hoping.^ the riade unions ^ ^ ^ and 

rival: the law has taken 

member national assembly an ^^ on ' Q doubt fttt the I bank headquarters in New York 
ainst only 21 for the ilndj De r S onaland the role of the dollar. 

asaiusi umj -a iui uic „i 

pendence Party, down from 25 result is a severe pe 
r . . i . . .! i _ . n— i fr 

io the last elections io 1 «T4 defeat for Mr, Hallgrimssoo.^d, he did_ not 

in tne last elections in — ; h „ ye , see New York In "an over- 

The independence Party would , eadeI S,fp must now taking situation." In part, he 

remain the largest in the new 

it the formation UC A ^“ ’Ycelandic Govern- 1 trade is invoiced in dollars that 
left-wing coalition, would Any _ . j tee. ...Is lire winmifantllPnrs are Mt in- 

remaju u.c .skAov-j. •» , n t auestion said, this was because so much 

Parliament, but the formation be open to i question 

of a 

clearly be a possibility, 
situation is further compli- choice 

Se ro^inuation d o e f High rate thf time zones worked against 
defeat of tne. leii-oi ceuire u «? inprpaqeu 'WoSti»®r New York — thouch he has in- 

Party, the junior of wage increases. 

part-ner in the outgoing coali- policy wiU he. pn .polar with | {reduced _dawu shifts in New 



Pn" whmhTroMed'frem {^sections'of {he electorate. York to change this, 
seati towVe Pity’s immedi- As for NATO, it will be difficult Weatherstone, who has 
!tp reaction to the election for the Peoples Alliance to reputation for carving profits 
was to opt for a period claim that it has a mandate from out of foreign exchange, told 
in opposition. apparently the electorate for itr w ~*" 

torpedoing plans for an alii- outright opposition. . . , 

-H three main left-wing final analysis, the majority of gave to their international busi- 
aflC ^ ° Icelanders would still probably ness. His colleagues say he 

pa mLa,i„*tinT!K» malar victors prefer the low-key American “revolutionised” his head 
v ^ h-*n the Social Democrats, presence on their island to the office and Its links with the 
T re^red a fp^tacSar risk of exchanging one super- Euromarket. Now of course 
who registered^ a . v — *„ Anu «^ fnr thn nthnr Morgan, like many banks, rea£s 

long to ensure that It keeps the royal Whitehall is entirely true. A 
coat- of arms on' its label. “ Of company in a development area 
course, some of us like it, but H somewhere In England ” had 
there is no lobby afoot I per- been given so many loans that 
sonally prefer Scotch," a spokes- the Department of Trade finally 
man at the Canadian High Com. decided to call a halt An 
mission told me. Hiram Walker, official was sent up to convey 
the makers of Canadian Club, this grim decision to the 
adamantly deny that diplomacy managing director, 
is coming to their rescue, A short while ago the official 

But their headquarters near chanced to meet the managing 
Windsor —*■ Ontario, not director In the street and was 

. shire-— do admit to having had invited by the latter to his flat 
some indications that the war- f or a drink. The flat proved to 
rant will not be renewed next be most luxurious. The DTI 
year. It seems that demand m official apologised for having 
the Palace is just not what it once been a bearer of painful 

was when the warrant was news .< think about it 

originally issued, in those high- 0 i d boy,” said his host. “There 
living days of 1898. was no alternative, really. 

- Things had got so bad for the 

company that I was almost 
Bifi picture being driven to using some of 

8 r my own money!” 

of bond markets 

“Perhaps fae‘s part of a Analyses . ^.ji,.- 

v f or the rarely make reading. 

pressure sroup 

■ SZtaTSS. five to 14 seats, power for the other. 

moratorium ! 

So I do-fcot blame John Grant, 

^ bserver 

Rorty-five years ago; Frank Pexkms developed one of 

the Vrozld'a first high-speed dlhsel txngioes in ' 

PetexboroughrPezkinE Engines is hdVrafc international 
leader in diesel engine technology ^eterboroughjs 

Today, Peterborough is a new town. Aadmanyr T - 
oompaniefi are taking advantagaof the.ctty’ffspecwd '■ 
opportunities to extend the frontiers of new technology 
in electronics, engineering, printing end medical 

Housing is available lor all the staff of firm* moving to 
Peterborough. There’s alarge 'pool of labour. 
Cormnunicadians afe first-class - London ia cmly -anhour 
away. Rents and rates axd low, . -- - • 

The hngo building programme ensures troide xad&Ttf'df- 
commercial .and industrial property and flitaf*. ^ 

Bing John Case ' 

Chief Estates Surveyor 
0T33 68931 " f .S' 

Bupding ort History 


Substantial parts of British industry are competing well in world markets but 
■; with the growth of world trade likely to be slower in the next few years exporters 
are going to have to fight hard to hold their position, let alone improve it. 




By Geoffrey Owen 

IN EXAMINING the prospects 
for increasing the UK’s share 
of world exports, it is all too 
easy to be depressed by the 
strength of the competition. 
Quite apart from the long- 
established tendency for 
traditional export markets to 
disappear as importing countries 
build up their own manufactur- 
ing industries, the ranks of 
exporting nations are looking 
uncomfortably crowded. 

There are the new industrial 
countries like South Korea and 
Taiwan, whbse economic 
strategies, largely modelled on 
Japan, are geared to a rapid 
increase in exports. There are 
countries ■ like Brazil and India 
which, despite their huge and 
undeveloped home markets, are 
determined to extend their 
range of manufactured exports 
into sectors of advanced 

There is Japan itself, busily 
diversifying its exports in 
order to lessen its dependence 
on politically sensitive products 
like steel, cars and consumer 

electronics; within'' a general 
move towards products of higher 
sophistication and Ridded value 
(and hence less vulnerable to 
the appreciation of the yen), 
there is special emphasis on 
mechanical engineering, where 
Japan's share of world exports 
is still surprisingly low. 

Finally there is the U.S. The 
fall in the value of the dollar, 
coupled with the -well-known 
American advantages of high 
productivity and economies of 

scale, has made exerting from 
the U.S. more attractive; the 
impact is being felt both in 
Western Europe and in third 
markets. - 


It is sometimes argued that 
second - ranking industrial 
powers such as France and the 
UK are likely to be hardest hit 
by the changing pattern of 
world competition. They will be 
squeezed on one ride by the 
three most powerful industrial 
nations — the U.S., West Ger- 
many and Japan — and on the 
other by the developing 
countries, which are no longer 
content to rely on labour- 
intensive industries. "But even 
if this analysis is accepted, it 
is not dear what practical con- 
clusions result from No- 
one has yet devised an all- 
embracing formula whereby the 
UK can select the sectors of 
industry in which it vis most 
likely to achieve international 
competitiveness and . then 
ensure that the necessary 
investments and manpower are 
directed into those sectors. 

The fact is that today substan- 
tial parts of British industry are 
competitive in world markets. 
Some of them might be 


(per cent) 

All manufactured Non-clectrical Electrical Transport 

goods Chemicals machinery machinery equipment 

1966 1976 1977 1966 1976 1966 1976 1966 1976 1966 1976 

West Germany ... 19.4 20.6 2U.7 21.5 22.3 23.2 24.9 19.6 20.0 21.2 18.7 

U.S 20.2 17 J2 15.7 23.S 17.7 28.3 24.6 23.0 19.7 23.1 20.2 

Japan 9.7 14.6 15.S 6.0 6.7 42! 8.6 12.8 20.5 9.8 20.5 

France 8.6 9.7 9.8 10.1 10.8 6J* S.S 6.7 8.5 8.2 10.0 

UK 13.2 8.7 9.3 12.0 9.7 15.4 10 2 12. i 7.6 15 .2 6.1 

Italy 6.9 7.1 7.5 5.9 5.1 6.6 7.9 6.0 5.5 5.4 4.5 

Note: The figures refer to the shares of exports by the eleven main manufacturing countries. In addition to the countries 
listed above these are Belgium/Luxembourg, Netherlands, Sweden, Switzerland and Canada. 

Source: Department of Trade 

described as knowledge- 
intensive sectors, in the sense 
that acceptance of the product 
by the customer depends on 
technology rather than price. 
Others are standard items pro- 
duced in volume and selling 
largely on the basis of price. 
While there may be a tendency 
for the first group to gain in im- 
portance, it would be absurd to 
suggest that tbe UK should de- 
liberately phase out industries 
which depend on mass produc- 

There will certainly be 
changes in the geographical 
location of some major indus- 
tries, but the future division of 
labour between the developing 
countries and the older indus- 
trial countries is unlikely to be 
very clearly defined. Even in 
the textile industry, for 
instance, there are some 
branches where British com- 
panies have established them- 
selves as low-cost suppliers of 
standard fabrics, combining 
high quality in tbe finished pro- 
duct and economies of scale in 
manufacture with the UK's 
advantage of relatively low 
labour costs. 

(surplus ( + ) or deficit (—) in £m) 

1977 1976 1975 1974 1973 

Machinery +3.039 +2,689 + 2,444 +1,254 + 856 

Chemicals +1,456 +1,083 + 795 + 590 + 395 

Road vehicles +738 + 945 + 944 + 729 + 501 

Other transport equip. +124 — 7 + 1 +198 +118 

Instruments + 85 + 67 + 69 + 42 + 41 

Textiles + 62 + 52 + 39 + 79 +106 

Iron and steel + 31 -145 —144 -163 + 60 

Clothing and footwear —281 —369 —310 —235 —203 

Source: Overseas Trade Statistics. 

The growth of world trade is 
likely to be slower over the 
next few years than it was in 
the sixties and early seventies; 
British exporters are going to 
have to fight hard to hold their 
position, let alone improve it 
But recent trends are by no 
means discouraging. Last year 
the volume of the UK's manu- 
factured exports rose by about 
8 per cent, which was about 
twice the growth of world trade 
in manufactures as a whole. 

There is some evidence, par- 
ticularly from foreign-owned 
companies, that the comparative 

attractions of tbe UK as a manu- 
facturing base have tended to 
increase. Much will depend on 
whether the slow-down in wage 
and price inflation is main- 
tained, but the combination of 
an advanced industrial back- 
ground, political stability and 
low labour costs should consti- 
tute a powerful advantage in 
tbe competitive battle. 

So much publicity is given to 
the failings of British industry 
that its competitive strengths in 
many sectors are often under- 
estimated. It is true that there 
are serious failings and these 

bave to be put right Tbe fact 
that tbe UK became a net 
importer of steel in 1974 
reflected production problems 
within the British Steel 
Corporation which have not yet 
been entirely corrected. Yet it 
is worth noting that the UK 
returned to the black in its steel 
trade last year and that British 
Steel continues to be one of 
the country’s largest exporters. 
While the scope for exporting 
bulk steel from the UK is pro- 
bably more limited than was 
thought a few years ago, the 
prospects for stainless and other 
high-value grades, where there 
has been considerable invest- 
ment by UK mills, are good. 

An even bigger disappoint- 
ment, particularly in comparison 
with a country like France, has 
been passenger cars, where the 
UK is a substantial net importer 
and the share of foreign models 
in the total domestic market 
has reached an embarrassingly 
high level. How quickly this 
will be put right depends to a 
large extent on the new 
management of British Leyland; 
the balance will also be crucially 
affected by the sourcing and 

investment decisions of the from which an export drive can 
three America n-owned car be launched. Where the require- 
mamifaclurers, all of which ments of the home market are 
achieved a substantial increase totally different from those of 
in their exports last year. In overseas customers, as has been 
road vehicles as a whole, the case in nuclear power and 
including components, the UK telecommunications, it is very 
still enjoys a large trade surplus, difficult for the manufacturers 
By far the biggest contributor concerned to compete success- 
to the UK's trade surplus in fully for exports, 
manufactured products is At a time when several 
machinery. Last year this sector developing countries are making 
achieved a surplus of over large investments in new tele- 
£3bn., about twice as large as communications systems, it is 
the contribution from the galling to see the lion's share of 
chemical industry. Non-elec- the business going to Continen- 
trical machinery, as Table 2 tal, Japanese or American con- 
shows, is one of tbe sectors of cerns. 

international trade where tbe it is important that tbe same 
UK’s share of exports is higher mistake — of staying too long 
than that of France and Japan, with an obsolete technology 

is not made in other parts of 
SfrPTlPth the frterironics industry. The UK 

kJlltu b lu has some strong electronics coni- 

The reason is that in a lair panies, especially in military 
□umber of product categories— equipment and capital goods, 
such as diesel engines, farm but lacks a strong presence in 
tractors, mining machinery, the production of mirro-eiec- 
some types of textile and con- trnnic components which, most 
struction machinery — the UK authorities are convinced, will 
has companies which are among have a profound impact on the 
tbe international leaders in world electronics industry and 
their field. To some extent the on a number of user industries — 
areas of strength are associated over the next few years, 
with heavy investment in the This is a field in which some 
UK by the so-called multi- Government assistance will 
nationals — mainly U.S.-owned almost certainly be necessary, 
companies which decided^ some There are nevertheless strict 
years ago to make the UK their limits to what the Government 
main European manufacturing ca0 do directly to improve the 
base and which have continued position of British manufac- 
to support their British plants, turers in world markets. It 
But whether British or foreign use d to be said a few years ago 
owned, the successes are those that companies in. say. France, 
companies which have matched Italy and above ail Japan could 
international competition in count oil the active support of 
product design, manufacturing tlieir governments in securing 
efficiency and marketing skill, export business. It was claimed 
To break into the world's top that in tbe range of financing 
league normally requires a solid facilities available, in their ex- 
position in tbe home market port credit arrangements and 

People wonder whether we’re specialists in civil engineering 

development or dredging or international construction or 
Insurance broking or process engineering or land reclamation or 


V ' ■ ' 

financial Times Ju^dayJJiroe 27 19tf8i ; 


The following eight articles deal with the industries 
that provide the major part of the UK’s exports : their . 
performance, their share of world markets, their main competitors, 
their strengths and weaknesses and the prospects and problems 
that they are likely to face during the coming year. ; 

J&ST BRITISH Leyiand and Ford These figures reflecrtw’o basic committed to exporting as " 
Ate motor industry embraces farts.’ First, Britain’s weakened British : Leyland. the -one'.. 
ftm*. of Britain's largest ex- car industry has : y m pt y - .w>y indigenous, manufacturer. This - t 
peters, another two significant been in a posttkffl^fo-'deveiop: an'is. Jaot .to. .say . that the U.S.- 
porformeis in Vauxhali and aggressive stance overseas. ' ”&& pontrolleii companies -are not „ 
Qhrysler,. and a host of strongly strong exporting position on ttoe ^ nter&ted in exports- But u 
import - orientated companies immediate post-war yeaca was they -aJL have. overseas associates 

jfr»T BRITISH Leyland and Ford These figures reflectCwo basic committed to exporting sector, .the VK 'component developing quickly. aadanum- technology and important com* 

flbe motor Industry embraces facts. First, Britain's weakened British : Leyland, the -one’.- MOTCM? INDUSTRY TRADE BALANCE : . Jnanofacturers have expanded ber df Comecon states are show- ponems. The ,econonues of 

fiio. of Britain's largest ex- car industry has sinmiyaot indigenous, manufacturer. This • ... - rather than contracted in recent ,|br an increasing interest in- acale in component maniffaetiir- 

tfrters, another two significant been in a position-fodweiop; an :is /apt .to., say that the U.S.- ' - -. : ’ - r tots - tow or ,4,.™ years.- Their exports areount.pvprseas markets. . ; - ^J™****^*' are advancing 

porformere in VauxbaU and aggressive stance overseas. ■ Ks Controlled companies are not ‘ V ’ . - ' % ctumge far only a part df their oversftaa u-j£ producUon tocreases m ^ becanse of new mech- 

^irysl^ and a host of strongly strong exportiog pooStibn in the Inter&ted In exports- But i ^ rs P s rT) „^ <J ’ sxt ■ vs» +10 business, since they have also the developing world, therefore. *“ sod . methods, to a Ppint 

W^^rie^ed rompS immolate p^vSTyeaw^tb^aUhave overseas associates **£*.*--. gf , tl* put a -great deal of investments Western, motor companies where . I is qurte possible to 

S*"” 1 .. _ , ... __ -J-- jJ a «nH - .ran rtivlrip im' maritfif Imports. — 886 1,324 + 50 in olnnt outside Britain as well. wi)l UnH ihoir enaort marfc*ts_‘ produCiB some paxfc- in Only OUP 

rinon; the component m a nuf ac- budit on the -o ondraratfo n tf its. up Components 

fefw But despate this export- tradSciojifli Ckmimcttweaffe mar- cdyerage m A way- ahpoKible Exnorte. • 

put a -great deal of Investment^ the Western motor companies where it is quite possible to 
in plant outside Britain as well. «dU find their export invkets.' produce' same parts- in only one 
But there has been an appred-and .even their own domestic 07 two factories on a world 

^idual compares in o^seas of P 1 ™ 1 ™; *®2L example* accounts for a very Commercial vehicles . • • Commonwealth markets - and tries, rather thaa providlng ponenls field, therefore. will be extremely paujy. barriers Sge^proportion of the group ' •; . Exports -5J8. . 653 : +19 .within the BBC. The object safes opportunities as^to -the a valuable asset in responding 

Safting a broad view, toe overail sales .. to! .-the continent; and i-v .Imports ,.... . 123 - 211 +72 ^ be^ ^ ge t Into as many past be asking to buy the t0 the challenge ,of the nest 

taend in toe ^ decade has tew- Chester . Franch - ’ Snares Other motor products - /: - . markets as possible; ally them- technology to bnSi uj^theb: ***&*- By fimtmrt vrtth France 

been away from vehicle export- Shaky suppayposrtion and qnes- Chrysler 3^^ ^ : jnost ^ ^ . Exports W8 .722 +25 selves with vigorous overseas own production faculties. Thus **» d West Germany, the UK has 

fa*g and towards more compo- tdonabte quaffity came to -weigh. EEC: ■ - Bnports 110 .164 +49 vehicle producers, and through the trend in exports will be^ proportionately larger and more 

Mot exports — a move which heavily against -it overseas. • ' ’ AH metor products producing parts for virtealiy towards the provhaon of these international component pro- 

fans both confirmed and exacer- The U.S. market began TVU.w. .1 ^port® +21 every vehicle in the world, get - facilities, along with sufficient fibcers* most of them well estab- 

Bftted toe decline of vehicle move steadily towards toe West X rv*lQ- M — 1 } M ? rts • ' JH 5 - +5* ^ an entree into the particularly CBhipiment parts to get' these throughout Western 

building in 'Britain. German coaqjmeies, particuliatily. ‘ ' »’* *ho oalarce + 529 . +311. ~14 profitable replacement parts -developments afloat. Tire major' * nd ,n America. 

■- •Last year’s fieures which Volkswagen, and- then to the buaiiiess all over the world. . .^ropea'n built-up vehicle ex- ,^ ie weakness vhich exists in 

reflect a relativel^oor’year for Japanese, because of. their Sf^mpoSiS : ‘ V.-' .. ^ Within the next decade, the Wrting effort Is .likely to be 

tifc? components industry, never- ability to guarantee regular Z^cent y ^S as - thw have- ftere a direcr rach demand from the armed world motor manufacturing'- directed at America— although JJ?*!? i,f„ Tl Sfr f/ 

toe less indicate what has been supplies and rateable products. to y ^totegrate^ their sp^-off ni the UK- services and tor all kinds of industry is likely to change s6-the XJ£. itself-promisesto pose 

S^i^recent years. The M«mwhite,. Britan w^ not a SpU parte “SctS r *!**$* !* ^ *?**** world much -that it wfll present «a r an exporting threat as its own V&JSEFit 

exports went up 19 partner in toe develop, pianj^- This ' ttend^ ^5^ . denve? ; tnm - toe ' V^thejnmpnr « entirely . new challenge -to. vehicle do^eratmn Sd^devcloomeSt 

to £752m, and of commer- mg free-trade .area.of toe EEC, ..accelerated rapidly . in toe last top 2SJ5?-th f t5 i P S ^ ehicIc . exporte ,f s “. Alrafady- more in hnewlth the rest 

C^al vehicles by 19 per cent also wWch boosted the exports,: nLtwo years, helping to expand pi4n a ^^ a' Qptably the Leylmid Japan has. marched ahead to. ,6f the worlds needs, -. This is why the Land-Rover 

to £65Sm. But component ex- most, of the . other'major^Q component e^>0rt': figures, t«i ' becomebyfarthebiEgestes:- . Most Euro^an vehmlemanu- range and Leyland’s commercial 

parts rose by 22 per cent to participants. ' : . and also-, contributing to > . ^^^landl^ a reatoh- porter to the world— wito 4Am. facturers,. indeed, now. beUeve vehicj e jjnere^arc 7 «auA 

ibah n T- most veers during thi’Trq bump to the component import f° 7, PP, ft? s . 1x1 ®b^y strong position to the /vehicles last year it. exported that the industry will, develop importance and are now attract- 

no-: mwuaLrjr, ucvci- ^ -j; — r”” lu recent, years as-iney nave- ^r. ■ ~rr *. . Tr — 

toeless indicate what has been supplies and reliable products. . ^ .-; t0 integrate .- their “ e 

ftappening in recent years. The Meanwhile, Britain way not a European parts manufacturing ■““£? ier r 
itolue <rf car exports went up 19 partner m toe nqtiffly develop- plants. - This ‘ trend- has. 
fruit to £752m, and of commer- tog free-trade .area.of toe EEC, ..accelerated rapidly in the last . 

C^al vehicles by 19 per cent also which boosted the exports, qf two years, helping ;to expand 

to£653m. But component ex- most, of the ejq>0rt: figures* 

flints rose by 22 per cent to participants. */ . ^soi: conteihnting. to a for hniiHiniv »p- 1 

»-«bn. In most years during Secondly, the ’ TJ5- mtiltl- hnmp to.the component import , 

1970s the components in- nationals— Ford, Chrysler and stotfebes in 19 77- (imports • at 

„ •“'VVI wguu, twiusumnj uuiic ,u»*u uuuuic, uiv iiumwn .increasingly on » wnimenoi t nB cn . miui i l ortuntinri 1mm *ho 

rotetove to the car manufactur- «»« rstalra «n gm Mtis> ^oro^ucen n^make more “ SS “?!!?■ ? r S5 ]s - ntiw - most are tfso likely to .enter toe lists., tog will tend to ; be contained nDDorfimitv . for Britain to 


these producers now make more ™ V* a »w»ums .w uw JS now -me second most are suso likely to enter the lists. . tog wil tend coiu«in«o nnoornmirv fni- Rnt^m »n 
industry, are not inherently as ^ SSmi baste ” Wtt«. f « o[ ^ important export area- in the South Korea, for example, Ms Sftin large couttnentai zones, S^ siEmflcant toJcG in 

’ shto them acrS Sontters to motor industry sales overseas, world ' forthe British motor .already .begun exports -;to such a, Europe or South ° ‘ n 

— the assembly works. In tbe By contrast with the U.S.- industry after Iran. - ' Europe, and intends to expand America. Wider scale exporting . . . . n , , 

' . . case of Ford, and increasingly controlled companies, BL, the By contrast with the vehicle further, similarly, Iran far wfll become a matter more of 1 •’ i eery JLIOdSWOrCn 

. -. of the. General. Motors activities former British Leyland, has a .!'.'•■*•. • L . " .... 

•' to Britain (VauxbaH: and the much more : traditional export- .. • . _ '• ' p' 

Exooct ratio AC Delco . components : com- tog profile.- Its emphasis is on •' ; ' : . . , - . 

. ™ • pany), Britain is. sees as a biiild-up vehicles, had it tries ■ ^ • ’ Je\ ' ‘ : • 

(doe’s units) 


Exports ! .: 

}%i • 


• 8,514.5 - 

4452 & 

5L1 .. 





West Germany 






714.3' ' 



IP* ■- 

LH4 2 

666.7 ■ 






Source: National figures. 

'2 ! — Fold’s planned new Bridgend of markets, not: in the more . “H I I'd I / ||T| T / ^^J 

l_ '*S: ,a p 0 r Mvtllivai >.vUill:Ucllilvo 

* . Motors, through its Vauxhall/ By world standards BL is' no . ■ ' * ' • : - •* . ■*“ 

u Bedford subsidiary, are also longer • a really ■■ large-scale .- .r ; ’- •’ v* : V- : ' • 

I . . . concentrating' on - developing exporter. Last year it exported ‘ -f’ -g." -g - 

; . Britain as a' base, for com-. 355.000 • cars ■ and commercial ' I -jr" Ijn^'uro ■ 

merrial vehicle production and vehicles agaimt more than Im I #* f '-. ■ f ' '■ Ik . " I- I - 

• export.’ Ford builds most of by Renault, - 1.4m by Toyota. ” I \CfX ,, w.wU, ,: ' . 1^.\ •/ ’ W \ M V I lx. - ' ' 'd. \ -l . 1 Vl/CIViA 

~ its European trucks and all of and l-2m by Datstot But BL. * T: - 1 ■ • .T?'. • 

. its tractors in the UK. and GM nevertheless, has an unusual ■■ ' -' V : 

recently made Bedford fte position In'- world markets by EXPORTING performance 1975; when GEC. was taking " One of the' -mai n inhibiting fell from ten to five as a result 
[ -'.-cent re; for all its commercial virtoe of the Land-Bwer range of electrical engtoeering $om- lions Man ‘-of ‘home orders; Rfjfcctors for the UK manufactur- of a series of mergers inspired 
vehicle activities in Europe. Tf which has wop* widespread paniw is dominated by the per cent or 9,120 MW), FarmRs fers in werld- markets is the by the Industrial Reorganisation 

■ W .^^T, these companies acclaim. This vehicle is to.T^^ Seii^tor^^. itotoh. ^vas able tO kgep lU.factoTy^t Smch ,di«»W«ed. 1^1 of' an CoftHnlttee. The Sve remaining 

. ■ ■ . — 1 , . - ■ " v yto spite.^of its moch : p~u5Uca>ed So&tiritr Ne%j^n?tle^iRii>Tyoe^^8xportafile . h jU Cleat > power ‘:are"v^Pareons 

difficnlties;^ \fc stiU-'. a ; Wghly teat: modiefttely .well ^loaded. s^t C m. The British Advanced. Peebles (subsidiary of Northern 
‘ - : successful earner of foreign Now. toe position is Gas Reactor ts ihnply not sale- Engineering Industries); Hawker 

currency. ■ reversedi -j since ^ Paraons. Jias ^ aWe i„ mo^ countries, white toe Siddeley, GEC. Ferranti and 

Indeed, if it were not,. the token the only home.brder^( fur decision ' to develop an all- Sonar Long of Dundee, wtiich 
industry would by now have Drax V 411(1 GEC - has British Steam Generating Heavy has concenzratedsiiccesrfuny on 

disappeared because of- the lack 8Up«Tor export, petformaiice^ Water ^ Reactor (SGHWR) cut tfi e smaller -sires. In spite of 

of home orders. In recent years y >I GE Xi^iSSl es * tl1 1 n ■ manuftetterera off ‘frOfe Ure ft« lack uf home orders to the 

the combined turnover of ^the t*ken7£00 expon orders development of the Pressure years, most mauufac- 

two turbine generator ye ^ WOr ^ Water Reactnr fPWR). which turers, particKlarIy GEC, have 

panies. Parsons (subsidiary p f a roi-ai or «* - ' ^ ortw . a ] m05t a WO rld been Investing quite heavily 

Northern Engineering .Indus- -Although this: is not sufficient, ’ • because they ^realise that tlie 

tries f and the General Electrical to fill GECs'turtine generator:. Therefore out' of three cat*, only • way to ktay to business is 
ComBBhy (GEC) has been- run- Jtoetojttofc. ‘ It^Js keeping tnem o 0 ri e ' s of esioort orders cux 4 - ta'.Heep well abreast of inter- 
v ;- ning r at about £20Om a year, of 75 to BQ p^ cent loaded, Wh:ch u N Brftlsh m - a ni,. national standards of design and 

.. . to - -ZSSSX S ^ ^SrS-Wt ■. W quesUoned 

■=■ •- dfficutties arose ge^u^eqtopment^l ^f brtiSnS' toSvidu? turtiS whether; the>pment number of 

• beewse of overnordering . by generator Sets dr for turrikey compares is still too * many. 

' ^CenfrarElectric^GenereU- ^prlse^KoJea^herTlthas fossil fuelsystems.but they are sincelargerimtts w)thhigl>er 

. - ing Board , m the 1960s, which WO n several mate r . contract*! cut off from the substantial v ? lmnes of Production would 

: ' ; : Mffit'is presently bidding for number .-.dfl 'tiirnkey .nuclw ^j bare ^vantage to the 

Sttt&S: JSMS won s^eral ^najor contrai 
vt anff K 13 presently bidding 

ajnot bc r Power sUtiou there. 

station- -was ordered between ■ - 

1973 and last year’s ordering of ‘ ■ \y 

tlfe/Drax B station near Selby, 13X2 fit; ’ ' • 

Which .was xhaihlv ' a rescue - '. - ■ 

d&pratibn for Parsons. * exporting record m 

systems which come ^up' tor ^ highly competitive . world 

tender. • .. . - . . . 

A document nreoared bv the The switchgear market has 

19 7 8 


K ai r‘ T l. s Tnroni ‘. A document prepared by the, swucngear marnet nas 

t*jDiw B rtatiqp. near Selby, JEargetv. . s ‘.’ National- Economic Development beea governed by the same 
Which .was mainly » rescue'- ^ r* . v . ; . o««> Which hredates the CPRS Pressures. The largest of the 

.{The dearth of hnmei prders ine msx T«ree Fcuy-aocnras rh^TIK berween which makes just about any 

forced the companies *»,>!** mmi- SrSln^llsi Sd 'toecSSS klnd of ^itcbgear up to 765,000- 

ttr-markets elsewhere. Parsoo* '2^ C Mr oT breakers. The other 

thieved a 4»nsiderahle slice; Staff jepon hn fe -WW 5°^*:mara companies including Rey- 

Se worH.-ta^t during garget. <fnr tioMl^ouJi^key^ewmeat, TOUe - nej ^nd. Hawker 

fffrst “half of the Proseht-de«de, Tb^ombinedj^j^ of SiddeIey ^e. like GEC, been 

twjfh exoort orders for 10.50® companies, or rather the exports key^-StatM5^-and 7,000 MWof forced ^ exploit export possi- 
raW- or Just over 8 per -rent nf -a proposed combined com- nuclear turnkey business.; The bilities as the home market has 

ptodtog akop^titorS’ home forabets out about ^ per cenL -^: w : whole ratiier slow 

markets) - added to a home ordering pro- of. me posslbie market . .to ttev^Ion the newer tvne of 

• However, much of. Parson’s- of ab .?« ?-500 MW to From a historical perspective (SF^^sSittoes^wWch^tere 

success was based .on ’^ partner. ^^^.^^ ?^ .^ clear teat the extreme being developed elsewhere in 
ship with Howden ib- Canada. ^ ^ f ^d«ed to b^the variations tf home ordenng ^ worlrf . However, ReyroUe 

which- Howdeo announced re. turbin « (^feast and famine ), have had ba5 benefited, from a technical 

cenfly ft intends to terminate ^ a most^ ^-unforhinate effect .on- eJtcha2l a e agreement with the 

in favour of - Parson’s Swiss > The Ul-fated CPRS report, exporting. Donng the 1960s, ^jg. company Wes ting ho use, 

rival Brown BnverL In the which angered nr embarrassed when toe CEGB’s ordering 2nc j cec’s range of SF6 gear 

oast vear. Parson’s performance ronnectedwith reached almost panic proper- 0 bw gaining wide acceptance, 

in the export- market has not industry, has, manufacturers tions, manufacturers had tittle 

We’re honoured 

Pullman Kellogg Division of 
Pullman Incorporated in the 
United Kingdom has been 
honoured with the 1978 Queen’s 
Award for Export Achievement. ■ 

Kellogg engineers have 
been solving engineering and 
construction problems forthe 
refining, petrochemical and 

Europe, the Middle East and . / 
Africa. And much of the equipment 
and materials exported to j 
the construction sites is manufac- i 

chemical processing industries in tured for Kellogg by British 

We’ve been given this award the United Kingdom and abroad 

for increasing our exports more 
than sevenfold in three years. 

We’re proud of both 

Pullman Kellogg 

for more than three decades. 

Plants designed and engi- 
neered by Kellogg personnel in 
the U.K. are located throughout 


Our dramatic increase in : 
exports exemplifies the spirit of 
cooperation among our suppliers, 
financial.institutions and ourselves. 

Pullman Kellogg Limited 
Kellogg International Corporanon 

The Pullman Kellogg Building, Wembley. Middlesex. HA9 0EE, England 

? competition from Swiss, japan- — deSetendK af thP were aJreafl ? pverioaoecL It is ■ i„ the field of electrical gen- 
, «e, German aad other a* onemmiflctaMr toattois was a crucial erators for standby power or a 

i fac.turers. which all snffer the time when other manufacturers. ma itt source in a cut-off location. 

/ same problem of over-capacity ^ . °?J ■ particularty toe Japanese, were British manufacturers are doing 

f and a. comparative fall;** off of ^egtouing to increase - their well in tbe world market with 

domestic orders since the oil for °^ r exporting ambitions and to about 80 per cent of its produc- 

cristo doitot^ that they build ^ a reputation with their tion exported and total sales of 

. During the period *970 to have mad^ use of ^iL customers. about 60,000 generator units a 

The same' picture is broadly year. 

_ • • true ol /switchgear* circuit However, sales of electrical 

1 • -j breakers . and ^transformers, motors overseas present a less 

i-idlt I P CONTINUED FROM PREVIOUS RAGE which have all had 'to compete happy picture, especially in the 

JDdlLlC' CONT,NUED H,OM PREVlous PAGE to: export markets just when smaller range. of sizes, where 

. . - . ih^r have bpcoine most cwi^petl- imports have a high pene- 

. . •- tiye. - tration and the export mar- 

... in the degree: of political back- specific probjems which need la- the decade . between 2966 kets are extremely competitive, 
tog from their governments toe attention. British exporters are and 1976, for example, toe trans- Substantial over-capacity still 
UK’s competitors were to a far a ° w Probably aa well served by former industry’s turnover exists through Europe, par- 
stronger position. fr e C0 - B j J £ 7 ’* finaociaI instltu- declined from £I49m- a year'tieuiarly to the large, highly 

whether or not those tions and by Government depart-. 0976 values), to only £76m in automated factories in West Gcr- 

£ art ttoie^^y ^ Qf their overseas 1976. In the same period, how- many, France and Sweden. In 

ISTliSSS? anoticablenow In "’f 1 Government, except ever.exports rose from £i3m to spite of this. GEC has been in- 

British pe ! hapS m tt * ar ? s tra , de : can - S28m. The . volume of exports- vesting quite heavily, with Gov- 

matir - to £ win export ord « rs - « » not has more than doubled during eminent assistance, to stream- 
ex! ^^roment support which ex- the period^ but more, important, line production and increase 
The fStitiSavrilable £?**?% success to worid mar- ^rts now account for over a capacity. The twin aim is to 
8525 Sort Crttfirs S? °J. the French ?, r raakers - third of the industry’s turnover beat back imports and to- obtain 

Sf^teeTteoStaeto. for e?- German u machine . tool compared with less than -10 per a bigger share of oxport mar- 

Guarantre Departmem; tor ex builders, or the Japanese con- C eut a decade ago. This trend kets. particularly in the U <; 

f s “T h e I SX”* 11 is IikeIy b «*>» “-"her, the marker * dominated 

LJSnme I. avaUable Cavern- i i5. e ““ leIKe °J * eir ' ,r °- i» clear, that Oie;«ve remaining by WesUngbnuse and Generad 
^nfl^lsfenlrt much more du«s. Bntamwo. Immwrld comnaniasin ibe industry can- Electric sSme years ago They 
3B£JSSWJ?S“ not all the home oar- derided to s ? «e«e the BrlM, 

■ CTOpmSs M^ang P pa°rHCu. '|>™; 3a Can dots to .create rihjrlng' tht^decade cm ploy l.icreadi'nk sSles^ In ”?U.S% 0 w 

/WThile there may be some to grow and to prosper- and the number of companies 1 Max Wilkinson 



Financial Times Tuesday June 27 1978 




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Leyland Vehicles has built up a world- 
wide reputation for producing the very best 

commercial vehides. 

With trucks, buses and tractors which 
are dependable, durable and designed and 
built to operate efficiently and economically in 

every climate and terrain. 

Last year alone, we exported to 
Africa, the Middle East,. Europe, the Far East, 
Australasia and Central and South America. 
Our exports have earned a great deal 

of money for Britain. 

And they’ve helped to make us 

Britain's biggest spedalist truck builder. 

Now we’re investing oyer £130m in 
new research, development and manufactur- 
ing facilities. 

So, were doing what we’ve always 
done best. But, we're doing it better than ever. 





S§^r : v?-. ' .’■■••" \ 


ll fiiilii 


Leyland Vehicles. Nothing can stop us now. 





BRITAIN has been exporting 
nearly £5bn worth of mechani- 
cal engineering products < ex- 
cluding cars and lorries i and 
this industry has a favourable 
trade balance in the Tegion oF 
£2.&hn a year. As the third 
largest exporter of non-electrical 
machinery, the UK remains 
ahead of Japan and France but 
still well behind the leaders, 
The U.S. and West Germany. 

A superficial glance at the 
bare statistics also shows that 
the UK appears to be suffering 
a decline in this important 
market. In individual sector 
after sector its share of world 
trade in percentage terms has 
been moving down. But this 
has as much to do with the 
industrialisation of developing 
countries as with any failure of 
the UK industry to keep up 
with changing trends. 

It remains true that UK 
mechanical engineering has an 
underlying strength and a 
position in world markets which 
provide a basis for considerable 
development and expansion. 

The manufacture of engineer- 
ing products with high added 
value will remain for the fore- 
seeable future the mainstay of 
the advanced industrial coun- 
tries. In the UK it i* one of 
the most important industries 
in terms of employment, invest- 
ment and export and ha? there- 
fore attracted a fair share uf 
the attention being devoted to 
manufacturing industry by the 
Government’s industrial rtrategy 
programme — a programme de- 
signed to improve Britain's 
export performance. 

This cannot simply be a 
matter of encouraging British- 
owned businesses to smarten 
up, try new export markets and 
look for gaps in the home 
market that they might plug. 
For the North American multi- 
nationals have a tremendous in- 
fluence on the trade perfor- 
mance of mechanical engineer- 
ing as a whole. 

Running neck and neck as the 
rwo biggest evwters within 
the mechanical engineering 
sector— and at the top of the 
table as net earners of overseas 
revenue — are the construction 

equipment and wheeled tractors 
jndusir^ 5 - 

l n ihe last full year F«r which 
statistics are currency avail- 
able. e.'.'ports of tractors were 
worth foll.Sm and the favour- 
able trade balance was £472. lit*. 
Oui-'t ruction equipment exports 
brought in £575m and The 
favourable 'balance was £359.1m. 
The statistics for the firs: three 
quarters of 1977 suggests that 
last year these two industries 
remained the major exporters 
within mechanical engineering. 

And these two industries are 
dominated -by the North Ameri- 
can-owned companies. In trac- 
tors Massey-Fcrgusnn. Ford. 
David Brown (a Ten novo -ub- 
sidiary*. International Har- 
vester and so on are all well 
established in Britain. In fact, 
only John Deere of the major 
Americans does not have a 
manufacturing facility in Lite 


The picture is similar in 
construction equipment. Cater- 
pillar. biggest in the business, 
and General Motors, can be 
added to the previous list and 
the National Eeonumie Develop- 
ment Office estimates that the 
North Americans between them 
account tor around half the 
sales of construction equipment 
in Britain and about 50 per ceut 
of the exports. 

The dependence, of the 
mechanical engineering sector 
as a whole goes even deeper in 
that a number of British- 
owned manufacturers ot mach- 
inery rely on American engines 
—or engines from companies 
like Perkins and Cummins 
which are American-owned — ro 
power their equipment. In some 
cases, such as fork-lift trucks, 
the British equipment is 
designed around the American 
power unit. 

All this means that any UK 
Government wishing to protect 
a large percentage of mechani- 
cal engineering exports must do 
its best to ensure that Britain 
remains an attractive place for 



Wheeled tractors 46S.U 


equipment 470.8 

Textile machinery 223.5 

T/e engines and par's 139.7 


steelwork J27.1 

J975 1976 

£m tin 
99.9 139.7 

361.H 215.9 

$2.1 DIM i 

30.$ 27.1 

33.7 4P.7 


Furnaces and other 








Forklift trucks 





4?. - - 

Machine tools 



1 7i5.5 







.■S'-nr-i': ncnoni**-'* I 

r.lLf.n. ..s 

.‘■i'liml'T - 

i?73 .1970 

368.1 472.1 

fist?.* 359.1 
341.'. 139.0 


ci.7 162.2 
fill. 1 ill .0 

the mullinaLionals lu locale 
manufacturing facilities. 

The North Americans were 
first attracted tf> the UK by 
the availability of engineering 
skills of ali kinds and the fact 
that the engineering industry 
in Britain has an infrastructure 
which can provide the variety 
of components required by what 

are basically assembly opera- 
tion-:. The fact that finance 
was ea?y to cmne by and that 
the British spoke a familiar lan- 
guage aiso played a part. 

There are do signs that the 
multinationals are looking less 
favourably un the UK as a 
manufacturing-assembly base. 
Within the past couple of years, 
for example. Caterpillar has set 
up a forklift truck plant at 
Leicester designed to export at 
ieast 75 per cent of its output. 

It remains difficult to judge 
the impact of the activities 
uf the North Americans, how- 
ever. because it is not easy 
to get reasonable statistics 
about the components they 
import to incorporate into their 

There are other important 
mechanical engineering expor- 
ters where the American in- 
fluence is pronounced, particu- 
larly internal combustion 
engines, industrial trucks and 
machine tools. 

Apart from North America, 
the main competition to the 

British mechanical engineering 
industry in world markets 
comes from West Germany and. 
incruasinaly in recent years, 
Japan. While more . nd more 
mechanical engineerin';, busi- 
nesses m Britain can cfaim to 
be exporting more titiih half 
their output, many s-.ctors of 
the West German industry have 
been able to make thi- claim 
for many more years. Machine 
tools, pumps and compressors, 
textile machinery and steel- 
works plant all fall into this 
category in West Germany. 

During those many years, the 
Germans 'nave built up a repu- 
tation for quality ,nd reli- 
ability, for prompt dc’rery and 
service, which has helyed out- 
weigh the heavy disadvantages 
involved in having an over- 
valued currency, it is not diffi- 
cult to fifind many individual 
examples of the Germans fail- 
ing to live up to .their reputa- 
tion. But these are always 
taken to be the exceptions 
which prove the rule. 

West Germany is no- without 
problems, of course. Tr.ore are 
signs that the difficulties of 
exporting from a German manu- 
facturing base are recoining 
more significant a? the 
Deutscbemark persistency stays 
among the world’s stronger 
currencies. The Japaaese repre- 
sent a growing threat as much 



to the British as well as the 
Germans and North American 

Following its success with 
transport equipment like pas- 
senger cars and ships and in 
electronic products such as TV 
sets and calculators. Japan is 
putting more emphasis than 
before on mechanical engineer- 

Aiready Komatsu is second- 
largest of the world's construc- 
tion equipment makers. And 
the European bearings industry 
has been considerably shaken 
under the impact of Japanese 
groups. Two of them. NTN and 
NSK. have actually set up 
manufacturing/assembly opera- 
tions in Germany and Britain 


As well as gains by the 
Japanese. UK mechanical 
engineering can also expect to 
see its world market share 
under threat from the develop- 
ing countries. Many of them are 
insisting on an element or local 
manufacture and assembly be 
incorporated in machinery sold 
to their home market. The 
North American companies in 
particular are in a position to 
comply with such requirements 
and will do so when the market 
offers potential. 

Fur the immediate future 
UK mechanical engineering pro- 
ducts can look for buoyant de- 
mand in the U.S. but only 
modest growth in demand from European countries, 
according to the recently- 
published short-term trends 
survey by the mechanical 
engineering "Little Neddy." 

"Depressed levels of demand 
in most industrial countries 
are leading their mechanical 
engineering industries to step 
up their export effort, often at 
cut-throat prices. This applies 
particularly to Japan, but also 
: the EEC countries. 

"Against this background . . . 
we do not expect exports to 
provide any boost to orders on 
I the UK mechanical engineering 
' industry in 1978 and at best 
i little in 1979," the report 
' insists. 

lift . 




The cooling tubes at the ceinent ico rks constructed byCostam-Sl 
.. the National. Cement 

me ueitei|gi|§: 

THE IMPORTS problem - faced: has deteriorated and the neW. costs ^hoiiia:^e.^ advan- 
by the British, textile industry; emphasis that" has been placed. tage.- over “ NorHiernr^uropean 
has become familiar over receiit recently on exports follows the ^ompetitOEs.aUlepfit^ 
years as a result of the ‘rapid conversion of this' balance.' ~ ■. / ;■ - '. 
strenuous efforts the industry into a very sizeable deficit, £ --j. . 

has made to achieve greater’ -.climbing each year up to 1970 i; .'V "-V 

protection in the face of fierce-when it reached £136m- Most - To 'succeed -ip; sophisticated 
competition from low-cost pf- the deterioration was in 'Western' European markets, 
sources. Much less is generally; clothing, where by 1976 a Wide hqwevety ffc^-lndus try .has. been' 
known, however, about the in- .gap of £270m had opened up .yaroed,;it will hee& to be able 
dustry's export record. • between imports into Britain, to offer ^good ^quality, well- 

In fact, particularly at the and exports. ’ designed a^:*ttriirtiyriy priced" 

top end of the market where-; Th 0US b tougher import , con- textiles mid/; cl. fitting'. ".and to 
British clothing has long trols have been introduced in de^Ver them oh time, . . T 
enjoyed a social cachet, Britain- j^po^g t0 this /surge. , the ^ey industf^S " response U 
has always been a strong e*- industry, .with considerable foes^appeals can bergauged in 
porter. Up until comparatively from tf, e Government part from the. tride figures for 

recently, too. Britain’s deficit and tJie various economic liwt year. More £i00m was 
in clothing imports was ^^ development committees cover- lopped, off -lhe : clqtiuijg deficit, 
covered by exports of fibres, j ng ^errtiles, has come to accept which in 1977 came t» £l68.6m. 
yams and fabrics. ^at there is a need foe parallel- Clothing exports last year rose 

Thus in 1972 Britain’s fairly action t0 improve the export by 45 per-cent in; value and are 
modest deficit of £74m oncloth- Record. The message preached now three times 'their - 1973 
ing— the difference between ^ ^ industry has been that its Jevel. -Textile exports, too, at 
exports of £I44m and imports* effort niust ^ concentrated, to £1 558m ‘ laSt- 'year are now 
of £218.Sm was more than_ otE- a muC h greater extent in Europe. almost double theixl973value 
set by the surplus of £I23./.m, whe _ e Britain’s lower labour. - The :, industry's-, ^increased 

on textiles. " - "‘•-I.C. ■■ 

Thu nntiflnn einro "TinwOTPr." " ■ ■ CO NTINUED ON NEXT PACE - 

<7 ,, j. on texuies. 

Kenneth (jiOOuing The position since/Twwever.T 

. gf/F ■ 

In 1977. with an export sales VvTiy the inrcmati^nal preference fur 

team of thirty seven people, A. E. Auto Pa its A. E. products: 

conquered most of the world. The quality. The set vice and deliver/. 

Into 126 countries' went an all out sales The competitiveness and the very fact that 

they cover an international range which is 

And out came £20.000.000 worth of continually growing, 

s for A. E. pistons, cylinder liners, ring l$7 7 lias tru!;cbeen a reu-jrdiF^jvar 

engine bearings bushes, valves, valve for A.E.Autn Parts, a member of Europe's 

s, valve springs, valve seat inserts, oil largest engine component manufacturers, 
and water pumps. The Associated Engineering Group. 

Not to mention an awarding vear. 


And out came £20,000.000 worth of 
orders for A. E. pistons, cylinder liners, ring 
sets, engine bearings bushes, valves, valve 
guides, valve springs, valve seat inserts, oil 
seals and water pumps. 

^ *ea 



A.E.Auii'iPari*. P.O. Bux lu. 

Legrams Lane, Bradford. England. 

efforts to improve Britain’s 
share of the world semi-conduc- 
tor market needs to be seen 
against a fundamental anxiety 
about the electronics industry in- 
cluding even those sections of it 
which are doing well. 

Over the last 15 years, Britain 
has .seen several markets iu 
which it was an important world 
supplier slip into the hands of 
compel. ti i rs. while new markets 
have emerged in which British 
manufacturers have failed to 
obtain a significant place. 

The most important example 
of an area m which British 
suppliers have slipped front a 
position nf eminence is telecom- 
munications. where, largely be- 
eause of Post Office ordering 
policies. British manufacturer.-: 
failed in exploit the market fur 
computer con i rolled exchanges 
which was left open lor foreign 

Before the IflSfK the export 
market in teleeomiminicainins 
wa., relatively small because 
many countries did nut have ex- 
tensile telephone networks. iniL 
the UK was j major supplier, 
particularly in the sterling area, 
’.’"■r that the market in lliird 
world cou nines has grown 
in Mime 84 bn a year, ihe 
UK has lost n:uih of its 
market share lu Japan, 
Sweden. Uc rm.'iiiy and tin* 
U.S. Briti-h exports in it»7n 
were only i'llTm compared with 
imports of l r| 'Viimi.i u mea lions 
eipupmi.n! of I'rtSm 

roe t'K tndutiryV Impe^ cl 

carving oui a belter sltare iu 

in.’ telectitnimiiiuaiton.- market 
ni:i>! now If centred on ihe de- 
'■el'ipnii ni ol by .Jem X. Ihe Fuliy 
digital ciMJipoivr c'-nirolJeil -- 
l': ni of exeiian^es. which ihe l\ist 
Office i- ik’ieitipiti" in conjunc- 
limi wilh ihe tii.-ec nianulac- 
Hirers. Plersej. (Ill/ (ir Moral 
Elect ru Oonpany ami Standard 
Telepliont-.s and Cables, the ITT 
suhsuiiar - . 

in ihe past year *l docs yeem 
that ihe Post office is beginning 
to Lake a uuieh mure vignmui, 
initiative uur ihe marketing 
iff British ieiicnmmunicati'ms 
ivjuipmcni abroad, it appears 
for example, lu be taking much 
more notice of manufacturers' 
demands that specifications nf 
equipment for the home market 
^hnuirl be drawn up in such a 
way that they will hr as adapt- 
able as possible to exports. 

The Pnsl Oil ice uave a b'l nf 
.support to Plessey and •'•ihlc 
;mtl Wireless m rheir ronsor- 
littm with Western Klectrie 
v, hieh unsuccessfully bid for lb** 
S3bn Saudi Arabian lele- 

communications contract More' 
recently, the Post Office, Cable 
and Wireless and Aeradio. the 
British Airways subsidiary, have 
been involved in talks about the 
setting up of a joint consult- 
ancy service to be called Eritel. 
which would help promote 

selves very large, they are ap^ .However^Si-all parts of the 
encouraging sign that the " two. consumer ^ electronics , market, 
way street” in military con- V UK . producers .are-r likely to 
tracts, between the U.S. aixd tome undey.susteinc3 .Pf 1 Assure 
Britain Is going to offer pracii- from Japanese mam^aeturers 
cal prospects to exporters. . "both "in' the" Borne ahd,Tnrexpo rt 

Mackintosh CoafOltuM 
mate the total U.K. production 

of radar, navigational aids radio £ dv e£f hlgi Volume 

communications and public ^“^“^^Scfurers 
hrnadcasting equipment in the „ j 

current year i.ill be worth h *« no w ..built W; 

:L £2:!0, ’ , taJSSSta «T,” 

In the defence ^ld, the im- 

ne[S«%M I ”b , e l, S C ee P n™f?om ra ! l he semlcondnctoPmanufaclnrers. 


y Pu s r e Cl ^^fhlp h,°e n a“unns n l« than 
J,® firm ^ as ‘^ kn-usirj of S i XC eentb of air inch square 

' n h ? iam S‘ e hearts That ' inanufacturers nf 
.ur the Clansman mobile rad.o syslems ^ n a e i ec iroiuc products 

Jt d ". Ve p ,oPed ^° mtiy are likely to . become more and 
^"? n !thpr ,r«l 5e ’\f ,• „ “lore dependent on the iote- 
i ' ther ,irca ? of lf1 ° grated circuit produem-s- "When 

-’tedrnn.cs busings, however, me componenr maiters can 

,h ® ■’* v ' h, ai- h - a c n r^ • U1 1" P Iai -'C‘ a whole subsystem on a 

r » t i ^ - sinEic chip, their mdusiry will 

l.i tiie held ol compmers. Tor b ecome 0 f immense strategic 

example, m of Interna-- i mptl j.t ance to equipment mantt- 

iinnal Computers Limited s Xat;lurers . 

iICLs) excellent exporting 

record, total UK product inn in 

1977 is estimated at £5SOm J- UeflUlU 

compared wdfn a toiaf UK At prt , senl ^ L tk has on ly 

mn..<ei of _6S6m the smallest toehold in this huge 


In the next few years, it is 
dear that the help given 'o 
British manufacturers bv the 
Post Office will be a crucial 
factor in their sucee » or other- 
wise in overseas markets. One 
reason fur this is that the Pu-r 
office has necessarily a-^umed 
a much tighter manager ml n*io 
in the development of System X. 
The mam reason is lhai n, m- 
puter controlled exchange 
system- are so coin plica teil that 
it would be irnpossihly wasteful 
lu sponsor competitive ctevd'-p- 
monis from ail the manui'v- 
hirers. Cunsenuently each "f 
the three manufacturer-' v. lil 
nor in the early years ai 
he making a eomplcte ran?*' uf 
equipment, hm only that par: 

of the system which ih?v were 
re.sOMiisihl,. for developin'. - . 

It is I'lear. therefore, that ?h" 
post Office will havo pi extond 
its meing^nirnt rule Tor '!*•• 
il-vcl’ipmem «»! »h^ tctu "> 
U-. uverseas marketin - - - • ■» 
iuiti-tion with the ui;-iii>r.i< - . 
Hirers For unr iltme i: 
lv difficult, if n*»t impi 
f,-,r the oni,-« t<< -upour: 
rh r c«- i ompctiHV 1- bnl- tm.-i 
l.lK companies fur an ovor-e/s 
iiintrnct. The way in ■■vhic’j 
overvi.s .‘ltarketiny '■' ill be • '»n- 

,1 urlorl is still lining a-uv-l> 
disriissed. The utilcuiti’ -f 
I liese cliM iir-i'Mis v.if! it :r.c ,i 
crucial impnrtinco fur fb.* offoc- 

livencss uf flu - UK manufac- 
turers iu world market- i!.*’ 
Ifistls when, it is hoped, they 
will once again nave a hp’ltly 
com pot i live product. 

,\ rather more encouraging 
piriure is presented m i , i a 
ticlds uf military elect rum< - .*. 
avionics, and capital equipment 
like bP.adeasl ing equipment and 
radar. In these fields Rr.i i.-;i 
mnnu fat hirers including PK-— 
soy. Marconi. Ferranlt and 
Kacal have -huwu up well tn 
world markets. 

Pi esse v amt Marconi tGEC; 
have both wmi devulnpinent 
contraei:, for the next genera- 
tion uf U.S. tactical radius 
• -invearsi. which embody iiu - 
hii.hlv sup It elicit ted •* frequene:- 
huppiiig " concept lu avoid 
enmity jamming. Alihouah llcse 
cunirjat were nut in them- 

1 1 CL's ) excellent exporting 
record, total UK product inn sn 
19k is estimated a«_ £5SOm 
compared wifh a to:af UK 
market of £GS6ni 

_n contro, and -nstronienla. anj j rapidly expanding world 
non, rhi: adverse h.-danro of m3 rkvt with praducttOH of in- 
trat.e was iwiy -mail, with m^rab'd circuits last year worth 
i K Production only :16m It- s - only about £50ra. Although Plcs- 
'han the wal LK niarkut of se y ntadc some useful ex- 
£ ’'u° r ' 1 .' u i«irt« lo Europe and Ferranti 

nave managed to hold nn ? •. which accounted last year ior 40 
n A ’ u; ^ P L ' r <*nt OI tnc-ir own par c?n| of , he home market 

h'"!'" ,narlic > f<!r m ‘™ r tor seali^unductor- and nearly 
v.smn S e;s. Ej:pnrt s , et c.our 60 p , r cc „, of th „ home market 
ielcvinon ihnwn steady for inu , srated Bmilte . 

mcrchainc are Mill at a very ., In , hls t . ontcst ;ha , the 

- w , r: h !”! a Salwnal Enterprise Board's 

P.Mdu.tion. U;i . ea. .lie roial p i an< set up s major semi- 

LK market tor cunsiimcr 'ontlurmr operation with the 
electronics was wnrih aboul he | p of somc . u. Si and Brltistl 

•ion of oTv OTTi, Pr0<! “ C ' w*™* Ethnologists is so in- 
.100 Of 0 . 11 ! i3Ui ill. teresting (GEC is talking to 

In some relatively specialised Fairchll ' d lhe v& ab0 ”, a 

areas. UK companies still had slmilar „ slems f rom tlle 

a rpjsnMnh m ntr .. . 

latPd from the world market. 

«r m R L“Ain E «w ^ probably also in the 

^ f or they will-' n* being 

,n S- f,1 nrni!^ n i **l«ceCTd funher and further 

^ corner by large fnter- 

1 n - 7- v Vr-hiy hii'ani-H uf na ‘dOJiaily minded competitors. 
v p'.*: faviiurabEe balance uf • . . • 

iradu uf £<5r,i last year. Max WllKUiSOO 



*!b;a S : 
■ f -A. Soci 

SPh'lr. X 

*oade A.c 

^loco is 

? L jquoi 





fSpo S..£ 
i|'? Sco! 




r * 


Financial Times Tuesday June 27 lflfc 



Construction success 

"its suppliers and associated pm- 
vfessions have in the 1970s been 
■Vane of- the UK's success sturios 
/anr. terms of overseas business 
/ It has not been a question nf 
-’nv^night success, however, and 
•.iaei^fier.vh'as every participant in 
■ 7 . the . .export drive necessarily 
v been happy with tiie outcome 
(Many UK contractors have been 
• operating abroad for 3U years 
;or iJQore and some have seen 
.potential, profits I unit'd into 
; weighty , losses as local con- 
Tditibns'and difficult client* have 
? combined to thwart the best laid 
!pian&- . ” 

^ 5 B&rt the figures nevertheless 
\ iuhSeriine- the major strides 
iSwfiWi the sector has recently 
JmaSe.ih selling its expertise and 
. jji^^rvices abroad. Govern- 
'.VmeMtfigures show that the value 
:of coH.btrucuon wurk won by 
:,coatracwrs outside the UK was 
in 1971 running at around 
'■} £300m. 

7 In' the year in March 1977 — 
'•the last period fur which 
statistics are available — the 
figure had risen to £1.7bn. In 
the 12 month period ending this 
; March, the total value rtf work 
taken on by UK building and 
civil engineering companies is 
expected to have easily tupped 
the £2bn mark. 


The considerable impact nf 
inflation on. these current price 
figures cannot be ignored, but 
the statistics themselves are not 
essentiaL reading for any 
observer wishing to quantify 
just how weil I he seel nr has 
dune in the international con- 
tracting field. 

A profile of almost any of 
the large and medium-sized 
contracting operations will to- 
day show a growing commit- 
ment to overseas markets and 
a growing dependence on those 
areas for a rising proportion of 
profits. Some contractors are 
now relying on foreign contracts 
for up to 80 per cent of their 
turnover, a move which >ume 
people regard as reckless but 
which the contractors involved 
say is essential in view c>f the 
low level of domestic work. 

The contractors are not alone. 
The material producers and 
suppliers are pushing overseas 
sales to compensate for the 
poor situation at home. Direct 
exports have been increasing 
but a greater proportion nf thp 
material producers' overseas 

efforts has been gBing intn 
investment in foifiJ^n-baied 
production unn*. J 

Apart from the^' material 
manufacturers, the .'jirofessinns 
K»u have been making a major 
contribution. Consulting engi- 
neers f;um the UK; ate now 
in vi >lved jn uumraefe abroad 
worth a cnn s ervalive--£2Ubn and 

demand fur their advices is 
strong. ?. 

But fears have recently been 
expressed that ihe past mu- 
eesses may now be giving rise 
to that old British complaint— 
complacency. Competition for 
construct fun work an® for enn- 
1 rafts asioL-iated with It ha* 
become far mure imeuse-in the 
past two years as thf eyes and 
efforts of the contracting 
fraternity have been centred on 
the developing nations. 

■ Nowhere has that Concentra- 
tion of manpower, .resources 
and -filing skills been more evi- 
dent than in the Middle East, 
where LK eon ( rac r«.rs have for 
the must pari a well-established 
reputation fur high sijiiidards in 
business ethic > and workman- 

At pre-.ent around 60 per 
cent of capital expenditure in 
ihc J7 id die East is being spent 
on construction alone— propor- 
tion unprecedented in. the de- 
veloping world — and competi- 
tion between contractors, nearly 
all laced with recessions at 
home, is now more fierce than 
ever before, :■ 

The situation is good news to 
the governments of those 
nations involved — they are 
invariably, the clients — which 
are now accustomed to driving 
hard bargains and to ensuring 
that all parties stick to them. 
Their approach has only been 
toughened by an awareness that 
certain contra dors . were 
attempting to lake wildly exces- 
sive liberties when tendering 
fur business. 

The situation is not as rosy 
for the contractors themselves, 
who face what can bea long 
and extremely expensive fight 
to win work. Neither is there 
much they can do if competi- 
tors such as the South' Koreans 
care to step in and bid for con- 
tracts at up to 30 per cent below 
everyone else. In addition, local 
contractors are gaining in 
strength all the lime and com- 
petition fur smaller as welt as 
larger contracts is intensifying. 

That the British will have to 
fight io maintain their signifi- 
cant market shares there is no 

doubt. Aggressive salesmanship 
could be l lie keynnie when all 
01 her factors are broadly com- 

It is a debatable question 
whether in the market inlelli- 
viemv and information sphere 
■ he L'K contractors are as well 
Scared a* some of their com- 
petitors. The Construction Ex- 
horts Advisory Board was origin- 
ally established by tile Govern- 
ment to help introduce an ele- 
ment of strategic combined 
Planning into the efforts of UK 
cun tractors in overseas markets. 
U was recently wound up. how- 
ever. as Ministers apparently 
fell its work could be adequately 
carried on by other existing 
organisations, such as the Over- 
seas Projects Group. 


There is. without any doubt, 
flu inherent reluctance on the 
Pan of most IK contractors to 
ad in concert. Only the largest 
uf the large contracts force them 
lojeiher into marriages of con- 
venience. whereas consortia on 
a national and nuilli-iialmna] 
basis apparently find much 
greater acceptance among many 
of their competitors. 

But it ia nut merely the alti- 
tude .of the contractors them- 
m-Ivcs which can be decisive in 
the winning oi business. To win 
*ork, the potential contractor 
lias to know what is on offer 
and here the support of an in- 
telligence system on the ground 
can be absolutely vital. 

The diplomatic network is an 
obvious vehicle for the mlorma- 
1 ton-gathering process and it is 
lair to point out that in some 
respects it has been doing a 
good job fur the UK building 
and civil engineering sector. 
Many commercial departments 
in UK embassies around the 
world devote endless energies 
to producing assessments of 
market potential and in. linking 
up potential clients with con- 

But it must he sard that i lie 
record is a patchy one and that 
while some commercial depart- 
ments deserve plaudits others 
require .something stronger. It 
is not necessarily the fault of 
ground staff, who are faced 
mill an immensely demanding 
task and yet can lie left under- 
manned and wiili few resource*. 

The contractors themselves 
say they are aware that many of 
i heir competitors from other 

countries have their own con- 
struction expert within their 
embassies to help them out. All 
loo often. Hie I'lv companies 
say. ihe commercial diplomats 
have little or no knowledge of 
ilicir industry. 

Sr. ji is really a mailer uf 
appreciation at Uic highest 
political level that indiudual 
" freelance " sorties on the pari 
of contractors can be time- 
consuming and wasteful and 
that a co-ordinated approach to 
(lie work of winning business in 
difficult markets is invariably 
going to make ihe difference 
between a coni run rnnimc to 
the UK or going elsewhere. 

Winning the contract is, nf 
course, only half the battle. 
Many of the developing regions 
— notably Africa and the Middle 
East — present a formidable, 
range uf lough working condi- 
tions. The UK I'linlraclor* have 
proved iheiiiM-Ivcs Miflu-tenlly 
versatile In cope, both from a 
technical and a personal point 
nf view. 

There have been suggestion* 
dial much nf tin- work which 
has been pouring mu of i lie 
developing regions i* now be- 
ginning to dry up. The expendi- 
ture figures themselves suggest, 
particularly among ih«* oil pro- 
ducers. that impending is being 
iut baek hill there is no evidence 
In support ihe view that the 
Middle East boom in particular 
is uver. 

Jt may well he that the num- 
ber of major infrastructure 
projects, involving multi-million 
pound contracts, will be declin- 
ing in numbers as development 
work enters a new phase, but 
there will still be enormous 
volumes of business available in 
fields such as hoiiMim. urban 
development, leisure and recrea- 
tion facilities. 

Fur the major civil engineer- 
ing contractors, neve rl he I ess, an 
examination of new markets 
beyond the oil-rich nations or 
the Middle East i.> becoming a 
priority. Many uf the UK civil 
engineers already have work 
hirlher afield, notably in A*ia 
and Australasia, although there 
ton competition is apparently 
growing. In add umn to in- 
creased participannn in these 
2 rcas. regions such as Latin 
America may al-n provide the 
enni factors with important busi- 

Opportunities for work do 
exist, however, much closer m 
home \'n one suggests that 

winning construction contracts 
in Europe is an ea>\ job as most 
nations have well-developed 
contracting industries of iheir 
own. yet some UK companies 
have managed to notch up some 
significant successes — if perhaps 
more on the building than the 
civil engineering side. 

Membership r.f the EEC 
should provide more chances for 
working outside as well as inside 
Europe. Under ihe Lome Con- 
vention. British contractors will 
be eligible to compete for con- 
tracts in 46 countries. including 
developing State* in Africa, the 
Caribbean and the Pacific. 

£93m. The deterioration com- 
pared with last year was 
accounted for by lower clothing 
exports and higher textile and 
clothing imports. It will only 
become apparent as the year 
proceeds whether the import 
performance represents de- 
livery in the first three months 
of a substantial part of the 
quota allowed io developing 
countries. If this is the case 
imports will slow down as the 
year proceeds, on the exports 
side, some recovery during the 
rest of this year may also come 
from the effective 7 per cent 
decline in sterling's value since 



r Cabling being installed in n village in Ontnn ns jxirt of 

Cassell Hawker Siddcley Power Engineering's £17m contract. 



efforts have been spread acr«i*s 
nil its sectors, ami significantly, 
in several of these, exports 
Iasi year were ahead nf the 
target for the year laid down 
m the sector working parly 
reports drawn up as part nf 
ihe Government's industrial 

Thus in wind textiles, where 
the industry maintains an 
export nm body through 
a statutory levy, considerable 
progress has been made towards 
the objective or regaining the 
highest share nf world trade 
held by the industry in the 
1970s. Total exports by the 
seel ur. which has been pursuing 
a policy of con cent rat ing *1 Hip 
medium to h*p end nf the 
market for some years, reached 
nearly £40Um. last year or 
roughly 40 per rent uf nut put 
by value. 

Seven of lit* top 12 markets 
supplied by the industry are 
fallow EEC members, with 

Germany heading the list last 
year with purchases totalling 
£4 tin. The oilier big markets 
are Japan, the U.S., Hong Kong 
and the Middle East. A sig- 
nificant part of thp industry's 
siu-cess is .i* counted for hv 
Scottish producers who raised 
their export* 4u per cent last 
year to more than £3t)m.. with 
Germany again proving ihe 
biggest singh- buyer of Scottish 

In knitwear There has been 
a similar maior increase in 
export-; which Iasi year totalled 
more than £23»m. Much of the 
domestic market for cheaper 
items such as tee-shirts and 
synthetic fibre pulluvers and 
tops, has been lust to imports, 
but the industry has tried to 
compensate for this hv develop- 
ing overseas sales for classic 
British knitwear in natural 
fibres. Some of the big pro- 
ducers — based mainly in Leices- 
tershire and Nottinghamshire — 
have also been seeking to 
develop similar links with 
major Continental buying 
organisation* tu those they 
already have with the big 
British retail groups. 

Efforts have also been made 
tn persuade cotton and allied 
textile producers in Lancashire 
in try to escape from low cost 
competition from overseas yarn 
and fabric suppliers by develop- 
ing product* suitable for export 
markets. Though the bigger 
Lancashire groups have hecn 
exporting fabrics for apparel, 
household and industrial textile 
applications for some lime, 
many nf the smaller producer* 
have noi ventured overeseas. A 
.-eries of export seminars has 
recently been organised by Ihe 
British To x t i I e Em pi nye rs’ 
Association in a hid to stimu- 
late export activity. 

But although, as the statistics 

on their rmn show. Britain's 
textile and duiliing industries 
were able tu achieve a major 
inerea*e in exports in 1977. 
there are no grounds 3t all for 
any complacency. In the first 
place the performance- though 
gond. still needs to be im- 
proved upon, yet even sustain- 
ing last year's earnings level is 
likely to be difficult. 

There are a number of 
reasons for this. Margins in 
textiles — even in the higher 
added value products which the 
U.K. industry is seeking to sell 
— are very - tight, and the indus- 
try is particularly vulnerable 
to currency changes. 

The secior was henefitting 
much of Iasi year from the fail 
in value in sterling in 1977. The 
rise in sterling at the end of 
1977 had an imniediale impact 
on the industry's sales over- 
seas. however, as the results nf 
the two biggest British groups, 
Courtaulds and Coals Paton in- 
dicate. Both companies have 
recently reported exports down 
in value in the last financial 

The textile and clothing 
trade figures fur the first three 
months of this year an* 
similarly sobering. For the fir«?r 
time ever, textiles recorded a 
deficit — £23ni — and this, added 
In the clothing deficit of 
£70.5 lm. produced a total loss 
on lextile and clothing trade nf 

The other threat to the indus- 
try's export performance as 
this year unfolds, could come 
from a predicted upturn in con- 
sumer spending in the UK 
market. A number of false 
recoveries from the recession 
over the past two to three years 
ha; made the industry wary of 
predictions of an upturn, and 
reluctant as a result to commit 
itself to stocks. There have 
been warnings therefore, that 
’lie industry could yet find 
irsj'lf unprepared to nicer 
higher demand later this year. 

The performance nf the UK 

textile and clothing industry 
has in be measured against 
what could be achieved. Though 
the clothing industry has 
d< milled iis export sales over 
the past throe years, the report 
of its sector working party shows 
that Britain starts from a very 
|iiw base indeed in the EEC 
market. In West Germany, the 
most important EEC market, the 
UK in 1975 — the latest year for 
which figures were available — 
supplied 2.5 per cent of all 
imports. Comparable figures far 
mhor EEC countries' share nf 
the German market were. 
Belgium 8.4 per cent, Nether- 
lands 12.3 per cent, Italy 45.6 
per cent and France 21.2 per 
cent. Figures produced by the 
knitwear sector show a similar 
low base for UK exports. 

Nevertheless, the efforts nf 
the past year show that the UK 
industry has become much more 
a ware of the opportunities. The 
recent MFA also means that 
compel it ion from low cost 
■sources not only in Britain, but 
in potential export markets on 
ihc Continent has been reduced. 
The Industry's export perform- 
ance from now on will depend — 
to quote the ringing phrase of 
one speaker at a recent textiles 
conference — on whether this 
.situation is used as a featherbed 
nr as a springboard. 

Rhvs David 

Our thanks to everyone 
at home and abroad who has 
contributed to the success of 




The Anglo-Afghan Trade Centre 
Manuel Dias Liquor Store 

S. A.V. A. Sociedad Anomrna .. 
Dalgety Trading 
Burns Philp & Co. Ltd- 
S. Smith & Son (W.A.) Pty Ltd. 

Eugen Fenwesi V.G. 


Representacoes Ltda 
. Frank B. Armstrong Ltd. 

.• s.a. Cinoco 

: Friths liquors Ltd. 

; *Xa Sevillana7 Gonzalez y 
• Compania 
■ Santiago Castillo Ltd. 

, TfeDisuilers Company (Canada) 


». Ltd. 

. uir 

: CasaVelazques, C.por A. 

? Technical & Tra -^Srias S-A. 
i: CeitrqCon^cifJ J . - g ro thers 
5 jUiZaid AlQurai] 5 } 31 * er 


Gellatly Hankey Sc Co. 

G.H. Muxnm Sc Cie. 

AS. Faxebrother & Co. Ltd. 

Oy Heini; Frentz A.B. 

F. Tanon & Cie. 

M. Guy de Beaupre 

R. Prevpteau & Cie. 

The Scotch House, St. Kitts. 
C.F.A.O. Gambia 
Martini & Rossi 
Gebr. Heinemann 

G. B. Ollivant Ltd. 

Falkland Islands Trading Co. 
Saccone& Speed (Overseas) Ltd. 
Anker S1A 

W.E. Julien & Co. Ltd. 

Mid Pacific Liquor 
Distributing Corp. 

Enrique Marroquin M & Hijo 
Mackay & Co. Ltd. 

Augusto Pinto Ltda 
Guyana StoresLtd. 

Agences Fronlif S.A 
Andre Kerstens B.V. 

Jardine Marketing Services Ltd. 
Albert Gudmundsson 
Fairmacs Trading Company 
Empire Stores 

S. S. Miranda Private Ltd. 

Rento Miquel Fernandes & Filhos 

Ltd. . . 

pX Borsumij Wehry Indonesia 

Iraq Stores * 

Nathan Zwy & Co. Ltd. 

Desnoes & Geddes Ltd. 

Jardine Matheson & Co. (Japan) Ltd. 
Kokusai Bussan K.K. 

C. Le Masurier Ltd. 

Costandi M. Bajjali 
Nairobi Vintners (Kenya) Limited 
Supply & Building Company 

Supermarket Supply Co. 

F.H. de Cunha Sc Cic Ltd. 
McConnell Sc Co. Ltd. 

Jardine Sandiiands (Malaysia) 

Ceylon Tobacco Company Ltd. 
Saccone & Speed Ltd. 

Blyth Brothers Co. Ltd. 

William Young & Co. S.A 
Charles Mercer 
La Generale Aiimentaire S.A. 

Costa Sc Cordeiro Ltd. 

Jawalakhel Distillery Pv t Ltd. 
Taeuber Sc Corssen SWA (Pty) Ltd. 
West India Mercantile Co. 

M. Edouard Rabot 
Bums Philp (New Hebrides and 
New Guinea) Ltd. 

New Zealand Wines Sc Spirits Ltd* 
Quill Morris Ltd. 

NilsEkjord A/S 
Sharikat Fanniya Omaniya 
Phipson Sc Co. (Pakistan) Ltd. 
African Sc Eastern (Nr. East) Ltd. 
Cyrca S.A. 

Nicolas Gonzalez Oddone SAC. • 
Conrad & Co. Inc. 

J. A da Costa Pina Ltda 
Costa Pina Sc Vilaverde Lda 
Cadiemo Hermanos Suers. Inc. 

M. A Almana Sc Partners 
Ets Jules Caille et Cie. 

Temooljee Sc Co. Ltd. 

Freetown Cold Storage Co. Ltd. 
Castle Wine Sc E.K. Green 
Sue de Francisco Quintana Ylzarbe 
Saccone Sc Speed (Iberia) S.A 
Rockland Distilleries Ltd. 

Peter Sc Co. Ltd. 

Marsoliau Sc Co. Ltd. 

Hazells Limited 
AY. Margossian . 

H.J. de Vries Trading Co. 

Richard Cederlund Agenturfirma 

Marmot Kellerei 

.Cim Fa Co. 

General Food Co. Ltd. 

Doxiadis Brothers 
Saha Vara Co. Ltd. 

Taurel & Co. Ltd. 

Teddy Danon & Co. 

Bethel! Robertson & Co. Ltd. 
Bums Philp (South Seas) Ltd. 
Calvert Distillers Co. 

Jose Aldao S.A 
Distribuidora Benedetti C.A 
West Indies Corporation 
Eurafric Trading Co. Ltd. 




“ Joint European ^Transports * ' 
or JETS, variously;' Beating.' 
between 130 to 160 paspenge*&:£-: ; 


fir irnncpirr inrin«rrv nunent manufacturers in a wide aircraft within latest 
THE L'K AEROSPACE industry P inrfueti-ips nartirularlv regulations. is being pushed British engines. 

been highly export- ran;e of mdustne*. particular!. b; . B] . itij]l Aer , ispii;! , fllfftrcnt lvp , s uE 

has always 

orientated. As one of the spear- including electronics. Last year, 
head industries in advanced j nr example, guidc-d 
technology, it imports a large crtlJtr fbuted nearly £2 
quantity of high-cost raw whiip 

materials, and by its skills con- e - P‘ ° ' ' r 

\’erls these into finished pro- menis accounted For over - 
ducts— aircraft (civil and airborne radio, navigation 

militarv), guided weapons and radar aids over^fi J-om. r 
space vehicles, as well as tyre? some £3.5om, and 
ancillary components and equip- like flight simulators 

ment that it sells worldwide. ba j ed ” flying tramm 

In 1977 according to figures pre- some £10.2m. 
pared by the Society of British 
Aerospace Companies from the Orfiprc 
Customs and Excise Returns. 

exports aniMunled to no less British Aerospace alone 
than £1. 0.18m. a new record level out 0 f tn t»l pa i es 

that was virtually double the p^nin. achieved exports 

go— either 

niv^e \ meric;: n aircraft powered hy aircraft or engine can go on Western Europe, -°* 

U «i nnie Si! .non generating business far many haps attempting _ caUaboragg^jj^ 
-., s worth rears, which is the justification ventures with both— have beep-r 

aircraft manufac- taken, but they /are not expectel-^flgi, 

figure of close to £520m achieved 
barely four years ago in 1973. 

While exports have steadily 
grown, so has Britain s own 
need to import aerospace pro- 
ducts. especially aircraft of 

£53tim. nr 62 per cent of mial 
turnover. This compared 
sales »f £740m in 1976 
the constituent ernnp 

BniMi Aerospace 

separate) of which exports •' 

with orders and options 
lhar aircraft imw exceeding 
100. and still" there i; 
confidence that the Airbus 

mntinue to provide a suhstan- were valued at more 
rial volume «f work for British £nem. “other than new 
Ac ro? pace for years to come. engines at £124.5in. ar.d pa 

P.rnt.h Ifmsnsi'i' nvi*r £l91_7m Anti.iiv! ill* KfW lime. 

types which are not built in at . C( >unled for £3«lm, nr about l|llT1 fnr industrialisation iA01» now also in the B-wing 747 The UK - 

Britain, such as Booing / ' 50 per cent. Over the pas > • ^r.vennc the lung-ierm produc- .lumbo jet. considering proposals for Farohocdugh has always, beett^** 1 Gcigy 

.tms and other "id- ncw uni facts for defence ■ sup- Mi>n 1>f lhp Swin^Arc ami-lank But as Hie figures -Imw. Horc rnilaborat ion put forward by th& ^ industiy’s shop-whriowsfG 1 ** 0 V*" - '"' 

puri services for Saiidi > ,_. ujtlpd weapon sy-iem in , s a c -i JnL inued high • .>lume of Boeing of the U.S. on its Toi Whi | e ^ t he prices of 
fnr the Hawfc tramet tor riij- £ , vp . This &S reeinenr prn- business in en »intf3 first short- to medium-range jet; and SDace oroductB rise, ana as '*** 

McDonnel Douglas Di.-10._while | an d and fnr the Tornado multi- ud(? ^ an uupnnant marketing developed some rim-- anrt nartiei nation with h^mo n 

home and 

rt5 at in- around 160 passengers a countries i parBCi^ting; 

This market has been it will be the 
the nationalisation ' 

even , r . 

major decisions^ ini:* 111 ® 35 

nc lu.- ion of an a?r-.e- Led and airlines w..ri. I wide for worlds major 
uicnt with ihe Arab Organ! -a- us*.* in liie TriSiar :-ii‘iiner. and are anxious 

Jumbo .i-*is and other wide- 
bodied airliners such as the 
Lockheed TnStar and the 


British ba £ n ; ,,r 
Giviup'f of 

further suh^rantial 


ness — m either 
industrial, or 
warship propulsion 
lions. Recently, i: 
itself has moved ini 

some other types of U.S. air- ~| e combat aircraft 
liner, such as the Boeing 737 ^elpt-d to raise the 
short-range jet. have proved ^ ern gpace Aircraft 

popular with some independent honk to more than L . mll j nne j,, provide a solid 

UK airlines. Thus, imports of £j 5bn. and in the civil sector. K . xpiirl hast fur the group. in- 
aerospace products of all kinds eV p 0 rtf by the Aircraft Croup t ] ie Bapier anti-aircraft 

in 1977 amounted to ciose to jn ^77 amounted to mure than m|JfS |,£ currently in service , n 

£766ni. but this still left a ngftm . These inchided con- nt|l nnly w |ih the UK armed and so, V e 0 ^f.u. nt 

favourable ha l a nee of payments tinued >ales of US- 1 25 executive j ori . e< } nu a f >evcral over- 

figure of some £272 m. j et5 ;, n rl HS-748 feeder-liners. si;3s rnsiomers. The Dynamics 

For the first few- months of j-„ r n,^ HS-12S. Mil* new Series J; r „ u p a i ?1 , considering a 
this year, export shipments 70ft version attracted some 2S nun ,|j er n f new guided weap<ms 

have continued at a high level, orders during the year, and tli 0 vcnIur ^_ j n collaboration wiili 

reaching over £270m fur the total value of new orders livi . r >eas count Fur example. _ _ a , r 

first two months These have during that >car. including one 

been coupled with the in Row Series 6H0 aircraft, approached u ,. a p, m ^ Imvc b**en held 

nf some maj-ir new export £4mn._ 
orders, including one fur radio HS-li'o now 
communications equipment Tor nmsi uf them for export. 

civil aviation n*e from Libya. T he ('ne-Eleven jet airliner in agreeing a 'oiunu.n . . 

and for the continued develop- con ,j nue s in production, again m meet the requirements ol ihc du - 

ment of the Ro>al Saudi Air mostlv for export, and a proto- Bmish, ‘..-ritiyn am u-n. 

Force. col for the manufacture of this armies in the late 19bt n -nj LateSt 

While inevitably a substantial airliner in Romania was si -.-ned WWs. In additmn a nu.nbu • 

nf the industry’s 5nn ie time ago. with discussions new a^r-hi-srouna. 

ago. and possible participation 

a^ liavy Intcrn^on^ 

craft themselves become. 

ite mational 

. Hatthev . cr - .fv • - 

„ lurbo-prnp engines like the McDonnell Douglas on several complex, it is not customa^r^i 

Swmsiire in the Middle Dar{ lhe T Vne and Hie Proteus ventures, including what is orders f or new airliners' 

Other guided misses ( . ontinue 1o ' m ake nmnw. while called the Advanced Technology actually placed at the 

some of Ihe Older i-.-i engines. Medium Range (ATMR) pro- manv m jUioz3s of pounds . W0{^k'; ' More ' 3ft. 
like the Avon, and the Olympus, aramine: ^^Loekhecd^ofWe o£ orders . {or smaller itemtv; rJrffif&i. IrtM 

are finding a new - . - ' ' ' 

Kts-gii coiiauorauuii dea is m aerospace wopusnaej . 

v ,^„ is land- European manufacturers on a i nvCT K-ing the UK companies*^’ 

and ..dele ii« aero- new B-10 version of the A-300 
.vil! con- Airbus, lo seat about 200 pas- 

" n f,,:,,re and on a sorios of 

Total orders for the jiL’scnchmilt-Bulkow-Blol'iii nf ludusirinl and Marin- Division 
top 400 aircraft. Wp ., i;,. rm anv and .V-ro- is Imping for big onl-i 3 'n me 

,r France with a view y*ars ahead for this P-.v.'cr unit 
in pipeline pumping .md oilier 

n l ihc 






a via lion Tersi'-n" of the 

industry’s sn me time ago. with discits^ijs new RB-21 1 are coming forward, the 

export performance is accounted 5lill in progress on t \* • deia.N Lfs<,le concepts remain under latest being the Dash r. ’.fi engine 
for hv the big British Aerospace 0 f the deal. If this is finalised nu.wfe concepts lemain - - - : - 

11 1 iMmnricinc f.n-ick Adrncnai'P hfinP- Sillily. 

.... . - . ....... of 3:; uoo lb thrust f»r use in 

nationalised smup . cnntpr.sma _,„d British Aern«pa« hnpe- , # „ el p the nest sencatlon ..f 

in the U.S... Aorospaw tm'd.un. ntnso j« a.rl.non- nn» 

British Aircraft Cnrpnraljon. that ii v.i 
Hawker Sirtdety Sjuaraies-'ind Kifh in 


and the independent 
Aircraft group 
both helicopters 

a major contribution comes 
from the ancillary and com 

CHEMICAL industry Wright, the former, chaijman : ; ports of 
makes one 
of payments 

manufacturing industry- Despite 
this record of success 
UK chemicals exports 
suffered in common 
m her goods over the last year 

s both cqu'fipetl with a nrw rnjlnn in Aon., 'm"™... "urn ""j'™ "7 ‘"‘I lram u, e depriBCd trUias »"■ pUntl to supply 

i- silencer capable of bringing the either by Britain itself, or not onl% .-hous that a umssfui , fl many of lhe world - s markets. 

me the 
•onlain a 

whTch indudns cine Jana nese reni.ireinen.s. the new premises will support iWla.m, ,» .Ml and eneipes 

1 ml Hovercraft ind a One-Eleven Series W0. civil and nuliiary aircraft mid hrsi designed and hu*1t up t" 

Sinn come; Soth earned with a new engines in North America, built 2U or even more, ear, «n .This 


Pharmaceuticals is one ot the" 1990;; Xast i year. 5he defici 
. '■?. T most important export .sectors varsened ^o-.s^Bej£155m. , On 

m>i«r nMnomiM With sterling now. bidf- '^ of. the chemicals ! iiiduMa^; • aga’d J 

U J . Weis around $153 the overseas-.- sales increased in. -that ^^^^tbpean^te-^mption. 

Last year the chemical in- "ncem 0 vet1ts Jack' 1077- by 225- j»r’cept:to SSSftaL /uheferf wWch the wool 

istry accounted for about 10 competitiveness 'has Imports increased by- 24.T1>er begin ^ rapid expansion of it 

per cent or the UK s tola! manu- minishe J^ imperial Chemical cent to £I73m aV the balance .plastics':: materials' sector ove 
fac luring output, with produc- lr l dU stri>s. theUK’s biggest of trade waslupll.5 percent^ the next fe^y^are, •.»' that J 
ti«in worrh some £l3bn. About sing [ e exporter is a case in point Drugs -manufacturers have cduld':take'aJ|ohs share of th 
34 per cent of the industry s ex- _ complained to the Government 5 r .owth in KEC markets pre 

ternal sales are exported and m ’ their ability tok increase dictecLfbr the 5980s. Such Idea 

1977 this contributed some (J m^SHA * • their export earn ipgs fas beeit tone.: 'found'^me favour will 

£1.4bn to the UK’s balance of “ impaired by drug pricing 1 IhienpherWcal companies, how 

payments, about 25 per cent of In common with ail the major poIic - jes uk prices generally, ever, which argue that existin; 
lhe UK’s total balance from chemicals companies m Western s {jpp Cd tQ jhe lower ehd of and propbaed plants are mor 
manufaciimng industry. Europe its profitability has been tfie - y^rid-wide range,, they than^.su^dfent; to cope .wit) 

Fur much of 1978 chemicals badly hit by the recession of the .^aji^ whkh has led to pressure 'extra; -demand ' until .well int«; r . 
•'XPorls have been erratic, but P as t 12 months and sales tell Qn manufacturers exporting- the ,1980s. The industry expect . . r 
the latest figures are more away dramatically m the second from tbe ^ to re duce thei^to .be Hvtng^rious ovej-^. - . 
'•neon ra^mz and suggest that half of last year. But with the ex port r prices, and hence ibe ^apacity fccr .sQtoe yM/siahead -. 
overseas sales are increasing ch.ange^n the value of sterling prQfitebi iity of export sales. It .also obiects;tp.the.-suggestkjj.- ;; . . 
a-’pin after the lull that began profits .improved in the hrst present pricing policies could that jnewv plants -sfcou id hi-, . * 

in the middle of last year. But three months compared with the discourage companies-; from built,' simply ^becauserAoF thi.,. .. 
lhe total for Mav this year at <’ nd of last year, and exports investing mare to . increase sudden. - ayaUaT>nity ; of- feed.;; - 
£343in was si ill firm below last returned to an upward trend. resear ch and development ihstocka fTftm ; : the North Sea.;'. 

June’s peak According lo ICr -exports from the UK were 4 the U.K and boost productive ^Xmr'esttbetit.. should, be led bj 
i"iir.:s pmdured by. the Percent up on the last three capacity, they say. The phaxmar' nwket opi^iuuties, it argues . ' ' 
viheink-al Industries Association;' .-months of 1977 But ihv ce uticals industry has nonet he--, Another.^qctor where the U?‘,. . 
the vrtJunic nf exports, though recovery has a J tf ® y less set itself the target D f,’chemical . ; ^industry:® . .per, v .. •• •' 

subdued in the first quarter nf anrt at £20<m the value of ICI reaching a £500m Hade surplus fbrinance Has Jeft something tc . ; 

1978. ha.-, now recovered from exports was still 11 per cen. by lSSO. but J^s goal. d^^d. , ; ‘;Lis''.: thar •n , ,;V 

{he verv p ..or period at the end ^low the level achieved in the likely to be achieved, because of . high .value, organit • - 

nr 1977. During the first five hrst quarter of 19//.. Nc\erthc- ; the. general ^lowjng down ia. chemtcids. V According to a rej 6 , s 

mnnihs of this year exports were | ess ICI has n Jp ced a niode ^ world -trade. From lAfO ''port -frtHn’jthe. sector workini^;-!:. 

1 In- Mime* 4 i per cent on the improvement this year in Ms the world drugs trade grew by p ar ty covering this branch o:';' 1 --' 

I.,.’ r.,r 1 077 iradina performance in enn- about 20 per cent a year (at. th& ^dustrv; investment wil ’*'■ 

n-v a ' ■« 1 mental Western Europe and current prices) but some have tQ be ^creased Consider :*•- , ... ., 

The AsaueiatKin s latest fore- lhe UK . estimates for lhe Jive years to abIy ovec- : the 'next' few. year**: f r „ . v 

* suse ,f s ,hat IZT 7 The UK chcmic-als industry IMO-m mm f or w ««M1 if lt ^ to h.yd m chance .oism: _ 
• l?3r h ;.,mn»^d still has difficult months ahead growth rate below 10 per cent- bi| al mi n a_: trade by the mid-.Si. ., 

with 1977. Biil'this'rh.e^s eena^n in JM markets and . with of Jhe _Jmpetns_ &r ,980,.- .TW, thedndustrye. _ 

farmers that app reciate 
a superb tractor. 

. l" than expected, and certainly working parties, established as too dependent on west ^er> .... 

: i d lower than last year. Because part of the Government’s indiis- many and Switzerland £6r a very-,, ' ' • 

1 of increasing competition from trial strategy exercise. These wide, range. of ^ie intermediate.* v m ; “•’• w 
- : . ■ i ,uui.iMitM«o An- iieorl lit hialin' Jhum ” thp <bpI , oi ’ !■ 


David.Bro\vns success at exporting 
tractors doesn’t go unnoticed. 

Hence our fifth Queen’s Award to 
industry die only one awarded dris year to 
an agricultural machinery manufacturer. 

For the future we are curren tly 
ploughing £15 million into enlarging our research, devel- 
opment and manufacturing facilities. So we can build even 
better tractors for world markets. 

Our second great investment is our workforce at our 
Meltham and Leigh factories. Many of them are dedicated 
to maintaining and expanding our sccond-to-none parts 
and service back-up. 

This is how we succeed in selling 8D% of our total out- 
put overseas and earning vital foreign currency for Britain. 

For when it conies to tractors, what we sowed 
yesterday we’re 
reaping today. 

i. *•-' i i f -nr-pk / IWN:Cr l 

sutnc In p**r cent hicher 
vulunu? than in the same 

of 1977. various countries cnmpanifi have tried to concentrate on; used to Ina'Re them,” the sectoj;.,^ ’ 

Last year UK chemicals ex- wi jj have to work hard particular market segments, to working party, repprt. argued. 

poris were worth a record £3.Sbn j JirroaS e their penelraiion .if identify opportunities for in- • . .. • ri 

and ruse hy M per cent in volume n vcrseas markets. creased exports and to enenur- A ttT2.Ctl' VC 

and 27 per cent 'in value com- The principal markets fnr age greater import substitution., 
pared with 1976. Throughout British chemicals sales are nuw The balance of visible trade in Tlie IHC has. proved^ ari a ttrac-:, 

1977 the UK market proved in- j n Hie EEC, particularly the cheinicals might have been con- tive base ffor -fnVestaient byptS 

crcasingly attractive to lower Netherlands, 
cost inipnrls. The result was that Luxembourg, 
imports rose at a faster rate than ant j France. 


Belgium and sistently favourable, but the overseas ehemicaJs. companies^ ^ 
West Germany import bill is still substantial, especially ; -iny .areas _ such at s . ‘ ^ 

- . «-* UR-. 

These countries ^ dlscovery qf North Sea^ ^ phannaceutfea?^ ; But 

companies, are comm? 

rxpnrts. increasing by 1L3 per alsn supp iy a substantial part „ n «,« W a.s heralded as a 0WDed L — ^ . h 
cunt in volume and by £4/ 1 in in lt f chemicals imports tu the nnnnrtnnitv fm* the' un ^ e ^ increasing attack fromw 

value lo a total of £2.5bn. UK 
UK chemicals trade is par- alwav 
tieularlv sensitive to fluctua- its 
lions in' the value of lhe pound, ihe 
ind when slerlinc nm\w1 up pean 

Eumpe. In the more specialised i97g. Exports to ihe Middle uraing the building of four new also lead "to* greater exports iij r 

product areas ihe UK was not a*« East also climbed sharply, erhvlene plan in the 17K by. frpm the UK:.^ Market "pqiltftriii^sj^ 

badlv affected, bm in such especially to Iran. Saudi Arabia IMS. Such aspirations have overseas cannoi , be. ^ r 

sectors as plastics; and pcirn- a „,j Kuwait. In 1976 North proved to be totally unrealistic without local mamifactur^,- l ’ , ' a 

chemicals Britain . became an America, account ins fnr £29, im. because of the iinexpectedly argues. Back at the ^egidnin^i,^' 
altractive market for con- rt f British exports, was another slow growth of both home and of .the lSSOs^jKH; had:*iB3les : Jr 
tlncntal producers striving lu major market. In that year export markets. Tt is now un- Europe of only. f35ra.. Since t i^ r,,r, *i»* 
improve ihe loading or their Qiitimnnwealih enuntrios repre- likely that more than one then, however, it- hsfc developed l;., , 
plants. Producers ihrnughuiii sented £5f*5ni. worth nf exports, cracker fethevlene plant! will several manufacturing "sites oc-sij, ' n- r 
Western Europe have paid The major sec i nr in terms of lie built bv 1985— the £250m to' the' Continent (ind by last yeai»i : y 
scant regard tn price levels as va j ue 0 f t he chefieal industry's £330m. 500.000. tonnes a year sales in Continental Europe had' i{ nv tM in, 

lliis will Help rather . thar^ ' 1 ' h 0s 

hindpr Rxoorfs from flip UK • " lll i 

^ j 93 equivalent to tb* .i> solvents', resins, dyes, pbfti- uncertainty, 

root ion of a trade barrier •*! eiser**. paint, plastics or fibrei. Another major part of the hinder exports from the TJKi - i r ,, r 

Kevin Done; ' r?r ' 

• 13 per cent against UK export.- Exports of organic chemicals fnduslr-’s exonrt straicr'’ wa? 
I a n pq»iival«*nt hunu- •: were valued at nearly £705m lo buiW lin ihe penetration of 

1 favouring imports. Sir KunJaiui in HITS, while there were ex- EEC plastics markets, again 




Chemicals Corrcspondenf , ;• «, n 


- -*!tc 


,, i ; r. 

Financial Times Tuesday June 27 


} During the past 20 years 

1 the geographical pattern of the UK's 

export business has altered very significantly. Western Europe now 
| takes over half the country's export sales, compared 
■ with about a third in 1960. 

The major markets 

of. the UK’s export business 
with our European neighbours 
was greatly stimulated bv the 
EFTA agreement and later by 
full membership of the 
European Economic Community 
\ In the early 70s. faced with 
the prospect of a' huae tariff- 
free* market across the Channel 
and keener competition within 
the UK itself, many British 
companies invested in new 
marketing and distribution 
arrangements on the Continent 
Often this involved the forma- 
tion of local sales companies 
the acquisition or establish- 

ment of manufacturing.facilitic.'i 
tu support direct exports and. 
most difficult of %\l .the 
re-design ol products to suit 
CiMUmenial requirement*- 
Have the nppuri unities been 
exploited as fully as they should 
have been? fn th use-products 
where UK companies have a 
distinct terhnulocica! edge, like 
diesel engines an5 some 
iesntenls of the aotonaative 
component bfiiiness. the Euro- 
pean market has provided a new 
.‘•nurce of dynamic growth. In 
parts of the textile industry 
some companies have been able 
to combine the UK's advantage 

•»f relatively cheap lahnur with 
‘•cun unties of scale in 
production, thus increasing their 
share of the European market. 
A growing numher of manufac- 
turers, of which 1C1 is a notable 
example, have been developing 
a European marketing strategy, 
with the l*K plants forming part 
of a co-ordinated supply 
network; in Id's rase this has 
been arvnmpanied hy a very 
c.iiisiderablf increase in direct 
exports from the UK. 

Western Europe now- takes 
over half the country's overseas 
sides, compared with about a 
tim'd in i960, yet there is a long 

Marconi broadcasting equipment— part of a £l.5m order from the Nigerian 
Broadcasting Corporation — air freighted to Nigeria. 

wav to go. There arc still too 
many .sectors, such as cars a ml 
domestic appliances, where 
imports from ihe Continent far 
exceed British exports. The 
UK's share of the total EEC 
market remains too low. For 
example, of France's lotal 
imports of manufactured goods, 
the UK supplies less than 7 per 
cent., compared with West 
Germany's -9 per cent share 
and Italy's 13 per cent. The 
UK supplies only 5 per cent of 
West Germany’s imports of 
manufactured goods, compared 
with France's 16 per cent 
share and Italy's 12 per cent. 

It is* true (hat these countries 
have had a longer period in 
which lu adjust to the lowering 
of tariff barriers within the 
EEC; moreover, their manu- 
facturers were not as com- 
mitted to other, very different 
markets ( particularly in the 

Commonwealth i as their 
counterparts in the UK. Bui 
the performance of British 
industry in Continental markel? 
continues to be disappointing. 

Perhaps, the British penetra- 
tion of European markets was 
interrupted to some extent by 
the emergence, particularly 
after 1973, of the oil-producing 
countries as a lucrative new 
market, apparently easier to 
exploit than, say, Wesr Ger- 
many or France. Last year, 
the oil-exporting countries took 
13 per cent of the UK's total 
exports, compared with 6 per 
cent in 1970. and it is not 
always appreciated just how 
important these countries have 
become to individual sectors of 
British industry. 

Saudi Arabia, for example, 
was the biggest market for 
British fork-lift trucks in 1977. 
The three leading customers 
for electrical power machinery 

were Nigeria, Iran and Saudi 
Arabia. Nigeria was easily the 
largest purchaser of British 
lorries and. truck*, in cars, the 
second largest aiarfcei after the 
U.S. was Iran, though this is 
mainly the result of Chrvsler's 
contract with that country’s 
principal car producer. The 
UK is the fourth largest sup- 
plier to the OP1X count ries. 
just ahead of France but well 
behind the 'US.. Japan and 
West Germany. 


The relative, share of invisible 
earnings in the UK cujr^nt account is significantly 
higher than the average for other; industrialised countries. But 
there are indications that there may be a decline 
from the peak level of 1976. 

Invisible earnings 

It may be that the buoyancy 
of the OPEC market, though 
now beginning to slacken, has 
revived the imere.j of Brilisli 
exporters in other developing 
countries. The more advanced 
nation? of Latin America and 
the ASEAN group in South- 
East Asia, which had been 
neglected for a good many 
years, appear to he attracting 
more attention from British 
exporters. British contracting 
skills, allied to ihe ingenuity 
of the City of London in work- 
ing out financial packages to 
suit rhe customer, have proved 
to he highly competitive. 

While the very large contract 
may receive a di 'proportional* 1 
amount of publicity — most 
export sellin ^ is a more 
rout i ne, un glamorous affair — 
the spin-off effect of such 
orders, both in direct sales for 
other British manufacturers 
and in patting Britain on the 
map in the country concerned, 
can he important. Since Davy 
International v.un the Aeominas 
steel contract in Brazil, for 
example, there has been a 
steady stream »>f orders placed 
in the UK for related equip- 

The same inmpany is leading 
an international consortium 
which hopes to win one of the 
ntatn contract.-, for the Zulia 
steelworks project in Venezuela; 
if Davy is successful, this 
should again lead to substantial 

hardware orders for the UK. 
GEC's power station order in 
Hong Kong, one of the first 
turnkey jobs of this kind won 
by the UK for several years, 
will bring useful work for a 
sector which has had to con- 
tend with a stagnant home 
market and intense competition 

Another ?et of markets where 

tile willingness to undertake 
lareg and complex engineering 
projects is important is rhe 
Comecon countries. For some 
years the UK has been. less 
successful in these markets 
than our Continental rivals. In 
1976, for instance, the last year 
for which detailed figures are 
available, the UK accounted for 
only 4 per cent of total OECD 
exports to the centrally planned 
economies, compared with 7 per 
cent for Italy, 10 per cent for 
France and 22 per cent for 

West Germany. But here, too, 
there are some indications of 
a chance in attitude. 

Massey Ferguson's contract 
to re-equip the Polish factor 
industry has brought in its 
wake a considerable inflow of 
business for British manufac- 
turers of machine tools and 
other engineering products. 
Davy International's £I47m 
order for two methanol plants 
in the Soviet Union was the 
largest single contract in the 
history of Anglo-Soviet trade. 
More recently, the agreement 
between the Romanian Govern- 
ment and British Aerospace for 
the manufacture under licence 
of the BAC-111 should bring 
valuable orders for suppliers of 
equipment to the aircraft 

The financing of these pro- 
jects is crucial and in many 
cases there is also a require- 
ment for The supplier to buy 
hack part of the production 
of the new plant- It was 
apparently its greater flexibility 
on this point which enabled 
Ci»rocn. rather than GKN, to 
win the recent East German 

TOP 20 



% of total UK exports in 










West Germanv 










Netherlands .. 










Irish Republic 





Switzerland .. 

































4.9 • 












South Africa .. 





Saudi Arabia .. 















Soviet Union 




Source: Department of 





Western Europe .... 

(per cent) 






(EEC S) 




North America ... 




Other developed .... 




Oil exporting 




Other developing . 




Centrally planned 





Source: Department of Trade. 

100 100 


contract to build a plant for 
making front-wheei-drive trans- 
mission systems. Both the 
financial and trading implica- 
tions of these deals often 
necessitate the formation of 
international consortia, with 
formal or informal backing 
from the governments of the 
supplying companies. 

Above all. these contracts 
require a commitment of 
management and engineering 
resources which few individual 
companies can spare. Yet it 
is precisely this commitment 
which the recipient country is 
most anxious to have. There 
is no doubt that companies like 
Volkswagen and Mercedes Benz 
have gained considerably from 
their decision to invest in manu- 
facturing plants in Brazil when 
that country was at a much 
earlier stage or industrialisa- 
tion and from their willingness 
to persist with the investment 
through tlie ups and downs of 
the economy; few British com- 
panies were prepared to take 
the risk. Without a willingness 
to invest in some of the newly 
industrialising countries there 
is a danger that the markets 
will he lost; British Ley land’s 
truck factory in Nigeria is one 

example of the kind of invest- 
ment which is necessary. 

Yet however successful 
British companies may be in 
the developing world, in the oil. 
exporting countries and in 
Comecon. these three markets 
are unlikely to account for much 
more than the present 30 per 
cent of total British exports. 
Equally, although the U.S. is 
still the UK's largest single 
market, its share of total 
British exports has tended to 
decline in recent years; given 
the strength of the competition, 
especially from Japan, it would 
be surprising if that trend were 

The crucial battleground fur 
most British exporters -is 
Europe. The aim must be to 
obtain at leasl as big a share 
of Continental markets as Conti- 
nental suppliers have achieved 
in the UK What is needed is 
a revival of the enthusiasm 
which accompanied the UK's 
accession to the EEC. For if 
British industry cannot compete 
in its “ home market ” of 
Western Europe, there is little 
chance of making up the last 
ground in the rest of the world. 

Geoffrey Owen 

\ invisible trade have made a 
f. major contribution to the UK's 
. ’r" current account in the last few 
- 7 years, offsetting a sizeable part 
90 f the large deficit on visible 
. .-"trade. But there are now clear 
^indications that the surplus is 
r- bn a declining trend front the 
- Beak level of 1976. 

. The picture, as with the rest 
•'.Hpf The_ balance of payments, is 

■ \i complicated by North Sea oil 
. ^activities. - the growing profits 

-r.'due abroad front rising oil 
'♦jprpduction arc likely to mask 
^ixontmiung expansion in eam- 
from seriates. 

. The overall significance of 
.^’invisibles is shown by the fact 
••-ihat 7 receipts . from the three 
retain categories — services; 
. ^Interest . profits and dividends 
**Pd !; transfers — amounted to 
eTvjcent of total current 
^-aikSiqnt ! receipts last year. 

: '^invisible 1 payments were equiva- 
; • .1$; '29J • per cent of total 

front account payments. But 
. represents a decline from 

, -^fie-peak ilgurex of the early 
^193)5::; when the percentages 

■ 7; were.; ,4 1 and 33 per cent 

; ^respectively, 


M/ThrO .relative share of 
^Invisible .bantings in the 
’sUrrent account is significant!* 

^gher-ihan ihe average for 

••figfier .industrialised countries. 
»76-*tbe last year for which 
i asi ve -figures are aval - 

visible receipts were « 
^r.cedt.of total current 
jmtimt credits .in the UK 
&»re9--vith just under 33 per 
U.S. There was a 
£'«T between 18 and ?« per 
wdfor other major countries 

of the. Organisation 
■gnomic Co-operation and 

ioament. There J* less 
irivWJde pa. - 

£»o^:Vrtie're the UKT °. r ^ n r ‘ h " 1t 
Jracttaially less iban that 
* I.Gerowny and *>«P a0 but 

iihati the U.S. 

SfccsieV.-- -differences 

the fact that ^est 
has a net deficit 

the UK ** 



vj^wn... more ra P lluJ 
. .5 'transfer debits. dl? 

is oninvisib'S 1 -' 

Iff.*£2.69bn' s<> 

when there was a visible deficit 
of £3.51 bn. However, the surplus 
fell back to £1.77bn last year. 
The main reason for this 
decline in the net surplus was 
a drop in the nel contribution 
from interest, profits and divi- 
dends and a larger deficit on 

There has. however, been a 
steady growth in the surplus on 
services, which account for 
around two-thirds of total, 
invisible earnings. The net 
surplus rose from £54dm in 
1972 to £2.57bn last year, signi- 
ficantly aided by the fall in 
the value of sterling. 

The most striking feature has 
been the rapid growth in earn- 
ings from travel. A combina- 
tion of Ihe squeeze on real 
incomes and the fall in tne 
value of the pound has cut the 
number of UK residents travel- 
ling abroad, while rhe number nt 
tourists coming to the UK has 
jumped up sharply. Moreover, 
overseas visitors have, accord m„ 
in the most recent estimate, 
been spending nearly twice 
much a day in Britain as u 
residents have been spend, ng 

al The d result has been a rise in 
ih#* net surplus on travel fro 
fSdm in 1972 to ju«t »ver £lbn 
last vear However, the pennd 
of rapid growth appears to he 


reeovery°in rea. In— <» the 

UK. fii/» niher main 

Surpluses on cx . 

invisible «f«™ few 

panded stead 1 aviation 

P'om the 

also grew s, ^ d,L ld P hanking 
with insurance ^ Warnings 
featuring S,I *VJ; ■ ... lJr k have 
from constr- nn ^ t|ie j a «t 

also risen a - a result 

two jma JSFftrZJi wnrk- 
of ihe S r f n 'Lacing countries, 
load in p * 1 J heen -reater ' - ola- 
There nas. be ^ e f Tn]n ^ from 

tilify. however. in. hc ^ the 

eommotbU ^ j n line with 
Baltic Evchan<- (beS<k mar- 
lhc upmaJJ’ a!sn reflected in 

keis. t Th fj ^ a ccount-fhP his- 

ihe sh,pp , n, ';fpni in servi'^ 5 ^ 
„ e iit single ttenj on 

^,‘cre » been 

mth the ^ 

in earnings from sendees as a 
whole, the contribution from 
interest, profits and dividends 
has fluctuated sharply — up from 
a net surplus of £534m in 1972 
to;.a peak of £1.52bn in 1976, 
but down to £405m last year. 
The rise was partly the result 
of ' an increase in earnings 
from direct investment abroad 
(including profits retained over- 
seas as well as remitted) as a 
result of the decline in sterling 
in 1975-76 and the pick-up in 
activity and profits in many 
industrial countries in that 
period from the deep 1974-75 


^Earnings from abroad on 
export credit and «>n lending 
by UK banks have also increased 
since the early 1970s, for simi- 
lar reasons, while there has been 
a. ’smaller rate of increase in 
debits. Variations in interest 
payments have been associated 
wjlh the changing level or 
sterling balances. 

: .The decline in the .net sur- 
plus bn this category last year 
reflected the build-up of around 
£450m in profits due in over- 
seas oil companies. Th-e slow 
.rate of economic growth 
coupled with the appreciation 
of sterling also reduced profits 
earned overseas and there was 
a rise in interest payments 
abroad following the increase 
in public sector borrowings. 

The deficit on transfers was 
fairly stable at between £4O0m 
and £5n0m but rose sharply to 
IBRIm in . 1976 and to £l.Sbn in 
1977.. This was principally the 
result of higher payments to 
the EEC and sume increase in 
overseas aid- An exceptional 
increase in payments to the 
EEC — due" to be partially offset 
by rebates later in the year — 
was wholly responsible for a 
decline in the seasonally 
adjusted net invisibles surplus 
from £441 in to £269m between 
the fourth quarter of 1977 and 
the first three months of this 
yc&Ei ■ 

The overall outlook from now 
onwards will be dominaied by 
the North Sea. It is difficult to 
make an exact assessment but 
Treasury estimates last year 
projected a rise in the invisibles 
deficit on North Sea oil opera- 
tions from £9<Wm last y«r fat 
1976 prices) to £I.Sbn in 
The deficit is clearly likely to 
be greater in cprreni prices. 

' The Bank of England con- 
cluded that, “although the 
North Sea programme is ine 

major foreseahle influence on 
invisible earnings for the next 
few yeans, it may i 0 some ex- 
tent be counter-balanced by im- 
provements elsewhere in ilie ac- 
count. In particular, earnings 
from services may continue iu 
increase faster than payments 
Such increases will, however, 
have jo be very large if the nel 
surplus on invisbles is not to 

The shorl-ierm prospects arc 
not entirely dear because or 
the offsetting influences. The 

most recent survey by fhc 
National Insiiute, for example, 
projects only a slight decline 
in the surplus this year to 
£1.65bn, against the revised 
estimate for last year of £1.77hn, 
with a rise to £I.9bn projected 
In contrast, a special review of 
the prospects earlier this year 
from stockbrokers Wood 
Mackenzie projected a fall in 
the invisibles surplus to £70Hm 
Brokers Phillips and Drew are 
projecting a similar total for 
I9TR with a surplus of only 
£lbn next year. 

Within this overall picture, 
the pruspreis for services 
appear to be reasonably 
encouraging. At ihe end of Iasi 
monih the Committee on 
Invisible Exports published its 
seventh annual survey of the 
prospects carried out by iho 
Economists Advisory Group. 
This projected a rise of around 
9 per cent in 1978 io the over- 
seas earnings of the major 
service industries with rather ( 
mure than half the rise reflect- 
ing' a higher volume of business. 
This is estimated on the basis 
of gross invisible earnings 
minus overseas expenditure. 

The airlines expected the 
biggest rise in 1978 as a result 
of a recovery of traffic lost 
through industrial disputes in 
1977. favourable currency move- 
ments and hieher I raffle. 

In the Guy. both insurance 
companies and brokers were 
optimistic though a fall in earn- 
ings was expected at Lloyd's 
because of the impact nr com- 
petition on premium raies and 
of inflation on claims costs. 

A1110112 the other features nf 
The survey were a fair degree 
of optimism from consulting 
engineers and export houses 
though caution from the ship- 
ping industry. the Stuck 
Exchange and commodity 
dealers who all expected carb- 
ines i" remain close to. or ever* 
a little Mow. the 1977 level. 

Peter Riddell 



xDort finance 

In a ‘fast-changing international scene, it's more 
than likely that you could find it profitable to 
review your trade financing arrangements — if 
only to make sure that they’re as efficient as they 
should be. 

And when you do review them, you’ll 
probably find that we at A P Bank can help you 
to a more efficient— and profitable— solution. 

Not only are we specialists in International 
trade— were also specialists in providing 
tailor-made solutions to individual problems; 
and in the kind of professional service that 
comes only when a customer is the personal 
responsibilrtyofa senior manager who can make 
immediate decisions. 

As a bank with many years’ experience of 
international trading, we know as well as anyone 
that importing or exporting is never an easy job. 

But if you'd like to find out how we may be 
able to remove some of the difficulties, please cal! 
01-588 7575, and speak to David Ollettor Greg 
Brzeskwinski. They’ll be happy to help you — 


A PBwic Limited 

A member of the Norwich Union Insurance Group 


2! Great Y/inchester Street, 

London ECN2HH. 

Teleohcne: Oi -S8& 7S75. Take SS2g i S. 



Financial arrangements play an increasing!} important 
role in export trade — particularly where the really big contracts 
are involved or when the buyer country belongs to the developing world. For 
Britain the banks function as the major source, underpinned 
by the Export Credits Guarantee Department. 

':?'r : v: ; 

’ " -TT . 

lit*' nmre -opliia 1 
where availability <»f credit 
prnwiiis m» pruMcm in itself, 
lhe qua liiv of ill** financial 
package hwunos all imp"ri;mt. 
!\> :i result I K emit rat mrs an* 
ieanmg m "i'.’ and iin»n; **n the 
merchant hank.-*. 

Bui the expertise of the 

misultcd e.irl> enough the In Hong Kong. Singapore arfd a jj on 0 f Ute .'contract-, byi.lhe^ '' " ■ 
anker can even -steer an Malaysian dollars for ^N^.-buycr and . s^heibe"^^ V 

x porter away from undesirable ln circumstances it ijiay- rencics aupng r n & •£ buyer- credits Asihttlv toattSk -iff ; — r . ... 

protects through bis be to ^ exporters - -*! ' ' 

hank is - . , 

as-isi enntraemrs in negotiating of nind>. 

More recently they 

men ham bankers ?.ws ihe'ir commercial contracts. The have been a ' , *|" p, 1 ^ ¥ ni *" 

hcvi.nd devising the financial C|pni j in ..i.s of the contracts are encourage e.vp.ureis m make 
package. Often they, mure than lNll3 i]y quite different from better u>e of their e\iviiM\o 
On? exporter, are the emre- thuSC which the contractor may infm-manon and advisnrj. 

preneurs who briny new con- ()C 1|t>c d pi. The same is true facilities, 
tracts to Britain. In many ways fn( . , n; , r kets such as the Middle 
th<’ merchant hanks fulfil the KasT >ind North Africa as well ^ joilHE 7 

role placed by govern men is and as Laim America. 

,he big banks in other countries rlw vvh i.-h 

such as France. ijcrmanv and l, ‘i 

cred n of Law ids and n j merchant bank is 

Metro Camincll for the £-nm | n „ Hie finance. 

Hons Kong mass transit railcars ^vi'i tell of buyer 

order, which marked the first- f, )rei g n currency the mwo.»'“ price 

ever buyer credit to be financed bil ni;*$ involvement in export currency forward 
m hk dollars and involved ,. nn tracts is more important mnstmetion mUriod 

lhe But iradtionally, and 

' very naiurc of their husinc# 

TSTSL Oe.plle ft_ s c~, .hr ,nn» .n d«,«n, «;rro»c.»- \\ 

xi.-nt that merchant batiks still have clLfti- a flexibility which is not 4}io etr^onth or weakness ^tif these two in combination . * 

Tapping the Euromarkets 

i»ve strength or weakness ^df these two in M “ D ^ uu ^^ -Tanger5tidp:-as u^miw*** i 
the currencies on the forward bond ^ssuw. • ^cal 

market. By converting- his pid financing.; equity and- WKaf the UK^Merehaa^bar 

to the same currency th?.;UK Bank loans. • ‘ bffCT-tfi?rex^ 

con tractor should on the -‘fine juu I tinational financing; is also '■ -coftjpMt 1 . integrated .tesp*K^ ' 

be ‘comparing like wittUlikel' requirement and the work;*!* .ihuch'^SelritTif^ as jff-. r -.-. •. a--' ; 

Selecting the appropnalew put out to > 


•are JOTS*- 1 * 

-L-‘.r . _ •>_ 

The bulk of the hu'incss of cated in die Euromarkets. The bMll |* s are themselves . el&'ble 
,},o f.irr-i-n banks lies in Hi-' iniiiai pn-puMl was f* simply Tn arrange financing under the 
Kurocurrencv markets, tim of transfer ihe Mandjnl >icrlmg scheme." 

docmner.iation onto a k.tiro- Thi> 3 | m ut-turn was a bitter 
deposits of ri2Kbn in May 19TS currency haaK Hut pr-xcd hlow fnr ,he foreign banks an. 1 
ht fore »uii banks t including "iipracncal. him. market banks sc ,. m . p, have resulted 



;he Lb clearing oanc.s •' currency deposit s h p 
amount to just - ’ r, - 

I.i.Jthil. The 

spelled mil in more detail m arguing limt it wisnen 10 en*. IIL - done) lhr0 ugh shorl ierm yun»«iu«m,. « -~ r borrow. - - , 

i hr- foreign curre ncy scheme, to “parity of competition among credit, bills or exchange, was introduced on March 1* rvintinUcd to bay-' - - 

help a.lvhe the ECOD on the banks wishing to participate. w Credits and dm-u- lf>72. This applied only to flic - ' 

l.vpe or docunicnttdoi. By lin-JUnp only menuff ««d.u- ® - 

the ECGD to refinance ail fixed >up the; difference. 

foreign banks do operate locally ■ , f|r Euro markets, the reuisiered companies w in »« w - r . ikw 

and t-uninil around a rilfh «r j : ldlin | iase{ t American BanfcV make sure that they were ade- However. «impeti lo n ^ export lending beyond an ; Although .file banks b u ^W,; r - 

ijLinaon i.asea ■ • *i ie d and sublet overseas markets grew UK ex- , , e(1 uiv a Jent to 18 per ir little at the relatively 

all I K sterling deposits liui it Association >•*« up a special »ul> quaiely capitali 

sure Tur .'Oiue Mm: end 
banks have been searching 
around- for ways nr Imuviiiv.' 
heir profitability. Inevitably 


c same prudential require- porters discovered that they had • t of c . ac i, bank’s current .haU poipt margin they \agrt.r.-- j; : : x n{ 

’ • ’ .-scheme arid It has c^-i 

“.in existence until t 
•. The only change was tl 
■ percentage bf the ban._ 


1 yonnai.s should be able tn look short-term lending tnstituliuna — -- ' 1 • ~-^3 U-V 

after their own prudential re- a way had to be found of prn-f 

qmrcmcnis. The prime purpu-u* vtding exporters with lonaer- 
The problem'- on documenta- „r ilu- re>iricliun seems to have term finance and at the same 

hey have been mrnsnu tbe:r lHm ;irr | e>> than what they been to prevent the merchant n me insulating them from 'harp 

eye u». the duuuslic market 
Some uf the b;u U S haw 

were 1ml a apical agreement banks .-nfTcring front exces.-r.e muvements »n interest rates 
ran still run in nearly lull page.* com pel it mil. during the credit period, 

been cu'lix ai :n'j UK corpora. e and pronipi'-.l one Ann- nenu (been llial the UK inerchiui Consequently, ECCP unveiled 
customers bui they have been bank-'r -.•■umieni that ■'th*' hanks have worked closely w-lii plans !«• enable hank' lo pro* ide 

a: a disadvantage bO'-aii'C they doi-iimeniaiion nuisl he wnrlh |h t . ECtiD fnr a lone lime and nxerl-rale medium- and long- 

cnu!d nut offer :hr full ranee ai ica.*i an «-.ira quarter "it tin* under.'- land ihc s> stem well, a jerin credit io UK exporters 
,if E'’*3D credit fac.l-mes. as spread.” B<-. «>f the com- ,-ase could be a rimed fur kep- aU amst an ECU-D guarantee. In 

could a clear: nc hank. plexity of the deals only o b-v my the foreigners under *-nn- ] hh l the scheme was widened 

The .*pp , ' r lun:tv 10 break into f " r " i:!n l,a:, l" h3V ” rea!l > ^h-* 1 irul. However, this kmiM include buyer credits, tiriy.n- 

5 he UK export finance mark*: 

wing ihe 'Wtlch fon-ian 
e'.irreney financing was clearly 

n..! *.ii 4 :« 1W .n^swl. arr 

i.-iitn :r.« fact i ! va! this son "f .7... tl ... ■ .. . 

hus.'v-S' nfferen a* trad lie mar- 
j-n< a rtd fat i:ijinm: — ;on*. alm.e 
ai! .1 -grc. e i.iroicn bank' a 
113 : 1 . 1 : :o Ici.ld up liv-tr cor- 
pera: .* rcjati-’tninps It ih«-j 
uid »ffcr export •-n-dst fact!.- 
i.c< :h':> cimld th**n cr-is>->e ! 
lhe:r .■: ru- r services. 

i.» take .i> I \ milage of the new backfire nl a Inter date. Al the t ,uy the hanks lent for period 

arrangcni. nl- E»:t;i) financing m.nm-ni. ihi* foreign liank? rm- lip ln fi Vl . years, and beyond 

i* not a* 'iiupb- a.' normal pa rlu-i paling in tile *ch -in.-s ,| ia j finance was provided by a 

me.lnic.i-ii.-rni b-nding and if because the spre.ii Is oie (tnisortiiim of insurance iom- 

i" gi.;ni*r:illy healthier (nan icosc p ;JII i,»s. They withdrew from ihe 
011 iinmial medinm-lenn vyndi- Sl -heme la ter bn. Tl us framework 
rated lending, where inleii'C | 1;| , been altered Troni time 10 
(•.•mpi-miou for business has |ime . |„ (l basically remain, the 
driven ihem down in a sanil . KOI1) continues h> pro- 
ndicubmsly low level. But "insurance” and through 

some day margins will improve jj,,, banks it is able to offer corn- 


arrange the •i -ul.- as opposed 
|ia."iV'. , ly participate *n them, 
ihey have i>- hire specialised 
nersiiiine! and at ihe same lime 
Ur assiireii. uf , healthy return. 
Tin- ab-.-re- -.f part u-ipai ion 
fi-o* m m 
d-ne pa 
foreign bank' 


Tilt' l fir 11 h-'w the f.. reign 

hank.* >aw the foreign currency 
scheme originally, li gave them 

man;. „■ ihe deals bcin , . , 1 and foreign hanks may not then p t . lltlll . ,..xpnri finance, 
ni. UMrlv irritates some be '« eager to put up foreign 
i-urreney to support UK 

bank? have f„ rv |n n hank? are suing to 
h p en the :u-«l visible *> far. 5el up special departments and Th „ <c i,nmr ha. worked wdi 
The i::i;tvink .-roup ha. led five hire filled sla ir t.i service U.K. _ por i,aps too well. By tin.- ,-iid 
deal, of it. .e.m <n ml participated exp „riprs The foreign currency uf thl . jgfiflg t | K . ,.|cannq hanks 

III another :i,r w . Allnxrther U si .i 1 ( .i„c has l» bn made atlrac- u .„ Pl , rnm-crm-cl nb.un 



n \ v YUUI with the 'leritn.g mu.- nut wnen buyer , nj[ a |,. hough they n ’ f h 7 ” mi . an , 

—— . ■« r— “ 11 , -' ai1K ' :i1 f ,,rM| - n ciirrem-\ bjtVP b,.,. n j.vnmTied !t.» parliei- hanks ha ,- e ' 

l^YTllP ! ^nOrTPr UK - V ^ riM n,,, h;,v, ‘ a br - III ih. 'tcrlmg sch-mu* L / ^ 

It/ALIIC enough dollar b.,s«* rnnd ihii 1 * April, have nut he -11 hl E ,.^ nc% . 

jfflE ,h “- key » urrviKy 1 to meet lb,- ver> - active a- yet. The lnrci^n * ~ 

‘Tllingworth^Morris (S, 
Company, limited ^ 

Saltaire, Shipley, West Yorkshire £ ' 

finance at 

■ ■ r ^ ihc fairlv lung maturities. A? the 

en. isU'iasin lor . it t . lparil ,„ banks total foreign 

The ci earing banks currently scheme '.u- iempcrml n> " .., irn . n ,. v advances only fmal 

aits that local part „f ihfletr lending ai the 
■ committed ^ank uf England from J'JfiS un- 
.idine Sli.hbn w - art j f . 

expected rt-quimnenis. 


This helped considerably, bul 
by 1 lie early I !»70s another prob- 
lem w.-is beginning lo .-nrface. 

buyer credit liusinesm bad been * .. . , nimv'v regret trymu, 10 Keep mis . , • t . . . i, n ,„, 

t ... rt ._ coil ceil he f-e., as well a> men •> - . • , _ n ,i ,» r hanks fell that they were he ng 

grow mg at a rate »r ■» Per trm ^ r{k . ip . jU ._ A number of deals >>iarkct to tneni hes and Mic ^ K1||| , idivy uXp ,„, . J)y 

p-.-r annum prior " were undvri-ikcn "it this ha. -is. formsn a ”-_ “ . ' lending at unuco no mic rates, in 

.(heme The UK deanns hanks v v “ quite a« mtcrc-dcd «» help 3' *’ a}1 i, (11 ,. < i, thl ,.. lhf 

»vr.- krvn (.. -h-v,- lh>. Vinter „<■»' n.l« il,ry «rrrr when rhr <. l,rn..- u ', r „ fina ' n , t . „r , h r lr 

t-. a i : |i! pr-ividp the dollar ftmd« auihori'*‘d banks ^ that ere nr ,g, na [jy annmuucd. 
from (heir own resmir'TS and resrs'^red n> ihe William Hall 

l s .j keep the business to them- pawes are now eligible to 


lending al The Haiti- uf Kitgiartd 
the latter was close tu if s limits. 

The Personal Touch 

. In Y.-:l e-:rc a-* t-i-: .-- n hjtm.rwKe-a* wortn a oozen.pnane cans. «a- r ,;,,. 

A r. j-d-J us-.c Thai -.ou •. e met »nwone lace to lace. j . 

^•• han-ie.-; ideas t#»3-.rd things m-urriiMCW irfew jokes perhapi- >,j j. ■ * • 
ar.d m-.-Tc c-.ian not - :-nid a p:op-JCi. s.iji.ed a cM.ittact. iron that order., 5 • 

•a-* Wrt.' n hjnd.hjke L' worth a dozen . phone calls. 

-. n* 

: f rt 

1 ^r w 

- i "?. Hr.-,-. -;v« 
, 5 5t -^l:’.i- a- 
^ s ‘>r a U-. 
'? fi'taite 

■ ifc . 

l\Us fi’.jir 

'll l‘,ip r 


^ ‘Vr;::: 

. it : 
k!*-.-"’ if.72- 

,5 ;o 

t! i n - a- 

. -iso: iai contact and S'^i kical-knowiedge'. in depth, •/ ^tRr- r 

[<. :!;•! >x:c; o; success m export. management'-' n 

■ tVe to think liui r».:r clients and our customers are part of one large, luj*-, ' “ r s n 
■ f,ci{.'P> f- 1 'n senlUlKiHrtt, hut a works.-. . . . U 

V-Vrc prv.cii .1 w:i:u:ng thepuecHb Award. fm-Export > ' ^’, 

Otr iam.i ; .-H-from Nkjctm 10 Snigapori»..imnf Abu Dhabi id Denmark-^ ^-'h f 
B-j: -le'vc Inr nhxe.- • ... 

t'.V-a'd vou '.‘ke to come Into ihc' fold? - ^t°mv ! ^' 

i *&■ lor 


t-.-'r 1 ii-**'d5*— . a-.a u-ij.flrns 

1 --.Vf r---- 


: 3 4*15^4 
•*- -V-r D.-.^adei .. 


,.,'•> «n.- 



-■ fir, 

We look after your exports 

as well as you. 

H , nf ' a '4 

..•Ja fi> 

.y Ho,* a -ai 

. VI ^ue 

r ; Ui r 

Inlcmniioruil Transportation and Export Packers. 

Strive Road sydwxter 
Beading 1107217 . 

Slc>ritcloi^i.raKF«ilK:invis< ** 

i ■ • ,fr sn v 

-: Mr ■ 

BUtckhum BB 2 . 5 JR ' . ^ t*i, t 

-id. 0251 292(1* . . , Ut 





t . 




: ■ • financial- limes Tuesday June 27'igt 

British exports rx 

. y>’j> i u» ^ 

'Gib facilities go 
on | expanding 

Credits Guarantee Department term crpdij C laking . over responsibility fur other l per cent if cover is 

(ECGD) celebrates its diamond clamourin'* P ru vidiny the bonds from the taken out for up to nine months 

jubilee. In the 60 years since it new schem../!?? 01 indas 5f * or bank s so that the company's as is often the case with very 

was set up in 1919 to re-estab- situation* j.< t0 , : ~ f,VCr i P ^5 Cular nr,rr l JaI overdraft facilities large contL-acts. This additional 

lisb -British trade after World have had . scbemes Wft ' l i ltl «ot he affected. "cost” of up to 4 per cent, they 

iWar -1, the department has cess somewhat mixed sue- The "jumbo" contracts argue, can often cancel out any 
' Undergone considerable chanci* Th» „ . ■ ' • ^ scheme, introduced in its original potential gain from selling car- 
JmtiaHy .its development re- first ? orm 2 = years a 8°* has never rcncy forward so that they are 

■ fleeted the increasing emphasis 1975 m ^^^her. ‘ven used and there arc no signs no longer able to offer a price 

^ pUcbd. on. exports in this coun- during t uset L TT of the extended scheme in foreign currency which is 

r- iyy and more recently the crucis I ooerMinn* l!*? 7 f &TS . of rt * ^eing takcn U P- But this is only more competitive than a sterling 
7 Se whlch financing iow pla * thax ZeSi Sh “ ^ daimed t0 be ex P e « ad C*en that such price. 

in,! neeotiatimr P I“* S ™ * T e T raI . c®" 1 ™* " contracts are by their very Rll , 

months. ** “for the Metro Cammcll contract 

in Hong Kong, which was Bn- 
X/Sfgll anced in local currency. 

***** Acceptability of the scheme 

Sterling has appreciated con- has been helped by increased 
siderably since the scheme flexibility with which ECGD is 

1 1 P 


; ******* overseas con- negotiating the^c but tl *“ Rumblings, 

mats., in the end were Jost to Tender to contract cover. * h f for f f,B . n curren „ c > 1 b “ yer “*■ 

■'•In the 1920s ECGD provided a com P e titors. it has since been which has been available for dIls P ° r ,c *’ ah J! who c ha t ?, ecn 

very simple form of insurance ll ! ed more frequently— a total less than a vear has, however. mort ‘ favourably accepted than 

; cover on a very restricted basis of n,ne deaJs worth, a total been widely ‘used by exporters £ rtst ant,c, P a,cd -P arl “ :l1 ; 
the first credit insurance scheme ‘■ un * ra « value of : £178.6m This scheme covers a company . y by ""l 1 ™* 1 ®,?- E 9 oD had 

as st^ch not being introduced hav,nfi now hesn concluded. negotiating a contract to be ^ et . a , tars f r ° r ^ lb . n , r ° r such 

Until 1930. Much of the depart- p art of the problem is that rtna "« d in foreign currency ‘^‘^vfrth of’^on 

- cent’s growth dates back to the th * scheme is very complicated gainst exchange risks during S0I J ,C J 1 ' 3 !" 1 ' r I h co 

jnd « World War U when ill so that only the mSSSEi thp **** b ^veo tender and V r tdoZrs to^Z 

facilifies were expanded to get cated contractors take advantage actual award of the contract. ;,7 e f J." b ‘ 'V*™ 

■ BHttah exporters berk on t hfil « * Then tho« ttat &™ue "Wrt «» »■> TOifios op to 12 " ,h » 52™ oSSelT'SSS. 

«« once again. But even then f h « “>e British scheme is tar “»"U>s. ^ Hon- Kon- Sch «a" an- 

- ECGD continued to function less comprehensive titan that \t*. « anced in local’ ourrenev " 

solely as a provider of insurance operated by the French, .which Vital currency 

edver,- tbe first financial bank ,s open ended, though at some Acceptability of the scheme 

guarantee schemes not being in- considerable cost to the French Sterling has appreciated con- ha s been helped by increased 
3ftdu£ed until 1954 and the ^xpayer. siderably since the scheme flexibility with which ECGD is 

buyer '.credit scheme for capital E X en so the scheme has been darted, and this is reflected in now operating the scheme. In 

‘goods exports not until 196L crucial in winning severe! major the number of contractors which March of this year it announced 
■ The ororicinn nf contracts, for Britain. . These hav «? taken out cover. So far that contracts with a loan value 

rover on a mmml indude the £147ra Davy sev en contracts totalling £383m of up to £5m are no longer 

„ mo1ric Daais Powergas methanol deal in the have be en won using the scheme required to be financed in 

■SraSnp tho ■«.™E rnaiy r ° e ' Soviet Union, the £100m turbine — it played a vital role for in- foreign currency. For contracts 

“ t e i, '^5 a 8amst generators contract awarded to 5tan oe in the Metro CamraeJl in the £5m lu £20n» range. 

- -« tne ■ f i r ‘ . f n GEC by the Kowloon Electricity Hnn e Kong deal — while an- foreign currency is preferred 

S™!®.® 6 S?“J!l ercia ‘ risks Supply Company of Hong Kong other nine contracts worth a and for those over the £20ni 

.wnicn it - covers ECGD is also the and the £25m rail cars order further £176m are currently mark it is mandatory though in 

omy organisation wmch will pro- placed with Metro Cammell by under negotiation. Another 17 practice exceptions get through, 

vioe cover against political and the Hong Kong Mass Transit de als totalling £334m have also This means that the UK con- 

.exchange risks. Railway Corporation. h "»* n h'd for hut not won so that tractor is able to offer a choice 

» Bond guarantees also got off altogether tender to contract of currency for financing — a 

oCOeniCS t0 ratber a slow start. •. But c °ver has been taken out by 31 facility which it not freely 

r- / . despite continuing criticism contractors. available to his competitors. 

But its insurance role extends over the limitations of the Bu t despite its usefulness the 
.jfarther than that. Due to the scheme it is now being used scheme is not without its prnb- 
increasing complexity of ex- fairly extensively. A total of ^ ems - It operates in such a way 

porting and especially financing, 121 guarantees wirh a total tba t ECGD gains if sterling Foreign currency also appears 

£CGD has over the past two to contract value of £1.68bn have weakens, while the contractor to be gaining acceptability with 

.three years introduced several now been issued reflecting in benefits if the currency appre- overseas buyers. The Soviet 

special insurance schemes. . part, the lowering of the eligible c >3tes. Given the normal Union, though it accepted 

• These include insurance cover contract value in several stages fluctuations in currencies the dollars for the Davy methanol 

against political risks of new from the ori S ina l £20m to the foheme should be self-financing project, still maintains that this 

• investment overseas for un to 15 P resen t £500.000 in response to in the longer term. But because did not set a precedent. But it is 

' ^ars^roLctfo^agair^^Dart of industry demand *- °. f the strength of ^rling being encouraged to accept 

UK inflation rnsT s fnr P mainr 11110 ma,n P rnb l° m of bond mv**t of its operation, foreign currency again by lower 

renitai tfnods ranir^ ihrnnPh ^arantees continues to be the £ CCD has been experiencing a interest rates on such financing 

1 S cLlt ^aticTs^eme sif^ banks ’ attitude ' ^ re ^ » steady loss on the facility. This compared with sterling. 

■ porTforTe^e'^n^ £b“«e 5*21 KfiSStSS! S o U,o Ea S , E„rnp M „ 

: performance and advance pay- wh ?ch wdi tend to bl *S is repuired its cnll " tries ™ n,,nue t0 P« s ? nt 

. ment bonds together with cover Xagafnst Usno™.! over- iosurmwbuslo^ssona^mmer- fore .'fi 

against unfair calling of the draft: The extent to which this cial basis, and the Treasury. SHJJJJJg n Xh A S^instanrei 
bonds, as weUas coyer against occurs obviously varies from ECGD\view, apparently, is that *° man h ,a ? n bv^ 

currency flurtnations in the company to company, reflecting “nee file scheme has been S a !_ fi ?J t 

tender to contract period. • hanWe mnfirianra « necessitated hv the Treasury’s Romanians insistance that it be I 

ECGD’s imminent more to 
extend the foreign currency 
financing to supplier credits 
will give contractors still 
greater flexibility. But while 
contractors may welcome any 
signs of flexibility frem ECGD, 
the extent of this in some 
instances makes a mockery of 
the .so-called gentlemen's agree- 
ment oo export credits. Britain 
has already followed the 
French and Italians in lowering 
interest rates on its cheap 
credit package with the Soviets. 
But it is bending the rules still 
further for the Rolls Royce/Tri- 
Star Pan Am deal where, by 
providing credit insurance 
cover for the entire aircraft, it 
is effectively providing access 
to cheap finance for what is 
essentially an internal U.S. deal 
— the sale of the airframes by 
Lockheed to Pan Am. 

To be able to do so it is 
bending even its own rules by 
extending insurance cover to 
U.S. banks when normally this 
is confined to the UK supplier. 
It is also breaking the OECD 
regulations on aircraft sales by 
offering credit terms of 15 
years iastead of Hie maximum 
ten allowed. 

ECGD’s financing of this deal 
has been repeatedly and vocally 
criticised by the U.S. The 
British Government can expect 
further attack from the Ameri- 
cans over its recent move to 
allocate 5 per real of aid funds 
to the financing of supplies of 
British goods and equipment 
or development projects. 

This means that for the first 
time Britain will be able to 
offer "credits mixtes” a mixture 
of credit and aid. This is a 
financing method widely prac- 
tised by the French which has 
frequently given them the 
competitive edge. But it is a 
practice which the Americans 
are very anxious to see 
abolished, along will) cost 
escalation cover which was 
given another year’s life in 
March this year but may not 
survive the next renewal date 
given American agitation for 
tougher rules on export credits. 

Margaret Hughes 

bers of a consortium' Involved m proving to be a problem, should also shoulder the finan- ,n P art - .anwriiie tfrazn. 

-jumbo ” projects against losses particularly for the: smaller cial burden of the scheme. 

resulting from the failure of companies who may be tender- -All ECGD will say at this * -1:*!! .hi^mnnti! 

pne of the other members. Last j ng for several contracts at one stage, however, is that the 

December this cover was ex- time. scheme, being a new one. is a . Xl ™ nt 

tended on an experimental basis Taking out ' bonding cover under continuous review. But it iJIJ' 

4o cover losses due to situations with ECGD is intended to seems likely that there may be ^ a ^''% fi / S ' ir e r ^, exp rI 

falling short of actual insolvency overcome this problem, though some changes in its operation. cretm ,n foreign currency, 
put where problems affecting one many contractors say that in Contractors, too. would like the The conclusion of the 
partner could jeopardise the practice this is not the case — a scheme modified as they find it HK$204ra financing for the 
contract: claim which is in turn rejected rather expensive. First, they Hong Kong mass transit rail- 

, ECGD’s straight insurance by the banks. The debate -have to carry the first 3 per way has also prompted specula- 
cover schemes are widely used-— continues as industry seeks cent of any currency swing, tion that ECGD will now con- 
SSCGD covers about 38 per cent greater Government involve- while the premium itself can sider extending the scheme to 
of all UK exports, some SO per ment to the extent possibly of amount to anything up to an- other currencies. 



Lending for Exports and. Shipbuilding 
- <£m) 

November 197Z -2973 1974. 1975 

po refinanced lending was in- ~ ~ 

creased from 18 per cent To ?0 .'LONDON CLEARING BANK 
jf^.per cent in July, 1976, and Lending for Exports ; 

sv finally to 21 per cent In 

December, 1976. However, once • „ M 

again the success of the arrange- .• November istz 

merits began after a while to MivNcn Export» 

... • put Stahls on the financial sys- Shlpbuildiiig Finance 

tem“.'add this time it was not S b _ total 1,872 

1 (the -^nks, but the UK Govern- 631 

-'meig. itself tliat was. feeling, the . ; 

r pirictC ; .The; cost of refinancing 1.241 

yj; '*fbe. credits and paying the extra gi, 0 rt4enn Export Finance 221 

% v, intCTesf lvas having a material . — — Tun. 

l impact on the Governments Total 1,4M 

! spending plans. The annual cost • — • — — 

qf bridging the gap in Interest 

W rates .alone leapt or domestjc shipbuilding st 

2^15 3.181 3^94 
1,184 1398 2,163 

2,033 2.291 

qt pnaging tne s«i* *** XXX 

rates alone, leapt from_£20m Qr ^ omest j C shipbuilding scheme means that virtually all 
R> £220m between 1972-73 ana r finance. Under the new new medium-term business will 

1976-77. With growing pressure thc participating banks have to be shouldered by the 

from the IMF -to reduce provide all - the finance needed basks themselves. It is reckoned 

expenditure it was obvious tnat . , din jn respect of maturi- that no more than 25 per cent. 

arpenditure it was obvious uiat | eui jing in respect of maturi- that no more than 25 per cent. 
Export financing would be nign _ ^ anf j deluding five and perhaps as little as 10 per 

on the priority list. years, or such longer maturities cent; will he eligible for re- 

i Th e 1972 scheme ran out in as are content to bold financing. Looked at another 

October -of last year and prior tiiemselves. Their entitlement way the banks will have to take 
to that the authorities had been tQ refi nance with ECGD or the upwards of £Ibn a year extra 
discussing the outlines of -the Department of Industry win on their balance sheets once 
new' scheme with the Clearing exten d only to- those amounts the scheme starts. This should 
banks and other interested wlr i C h are due to mature fur save the public purse about 
parties. Ta December, 1977, the repayment more than five years £300m in a full year. The banks 
new ” arrangements for ECGD after commencement of the have given assurances that they 
supported sterling export credi t period. Banks partiapat- can provide the extra funds, 
finance were unveiled aud it ing in new scheme will be while also meeting the expected 
would be fair to say that ^ hlle entitled to a commercially based demands from other prionty 

the- banks termed them'^acrept' fate of return on th«r un* areas Howeverifcorapcting 
able"they were not .ecstatic. refinanced lending which will demands for capital increase m 
; Sie main objective, of ; the be calculated by reference to the future, the banks may well 
new Scheme was to ensure that sterling London interbank want t0 -renegotiate the scheme 

offfred S'ESTSSSSfc-irS 

Credits Pr * .» r 

sss^jssj: sss.'s 

222!: of fixed rate the old schemes j export financing was the switch- 

. L available to years • to _ run ° haveiereed over to foreign currency financ 

5^ fc ^M re fixed a rate the old schemes will take se^ ^ 

. adequ ate available so years to r“ n ” b . have a areed over to foreign currency financ- 

gsmce_ wpaldbe a the meantime the banfo b ing This should be cheaper 

? P t? Sweetener with the au o lha ^ t !L ftll0t that since UK rates are generally 

.^anks to hard- As j or will increase the thpir 0H - n higher than Euromarket rates 

Sfunder-they will hold I on ft* &n anrf is nn provision for 

• ^ nan< ^ business account to a fixed p P refinanning along the lines uf 

:fCGD guarantees tor based Q n 24 per cent ofjhe renn^ Jn Febn|aiy 

credit business) value of .^ eir <jW h? deposits 1977 tiie Secretary of State for 

.years < the short tera bus ___ bearing sterling si ^.h Trade outlined a number nf 

,u.,*r ' 

i i .1 * 1 

should only underwrite larger 
projects where these were 
financed in foreign currency. 1 
In April of This year thc foreign j 
currency scheme was extended , 
to supplier credits with n 
maturity of over two years. 

In addition to switching a 
large amount of ECGD business 
onto a foreign currency basis. 1 
the authorities also opened the 
scheme up to foreign banks and 
this is what has upset some or 
the hanks. They were prepared 
to participate in the scheme as 
long as they had a monopoly 
along with ihe merchant hanks 
but they were not so happy 
when tiie scheme was thrown 
open to all comers. The big U.S. 
hanks with a natural dollar hase 
looked to have a natural advan- 
tage since they could raise 
foreign currency funds inure 
cheaply than the clearing hanks. 
The foreign hanks were a No 
seen to muscle in on the ECGD 
scheme because it would enable 
them to build up their corporate 
relationships with big UK 

As a result the authorities 
revised their rules of access to 
the scheme in October. 1977. 
Whereas initially it had been 
open to nearly every foreign 
bank, the new rules stated that 
only those banks authorised 
under thc exchange control Act. 
1947. and registered as com- 
panies in the UK will now hu 
eligible to arrange such credits. 
This protected the UK banks 
from unnecessary competition 
although the official line was 
that it was meant u» provide 
"parity of competition." 

Against this background the 
clearing banks have had to 
adjust to very significant 
changes in the framework of 
export finance over thc last IS 
months and it will be some time 
yet before the dust has settled 
and it be judged whether the 
current arrangements are more 
or less beneficial than earlier 

Export success 
achieves a special 



William Halil 

«V'.: * . • v 

Last year we achieved a 
growth in exports of 59% in 
twelve months from £31.4 
million in 1976 to £49.9 million 
in 1977. 

The total value of die 
chocolate and sugar 
confectionery exported from 
the UK in the same period was 
£149 million— one-third came 
from Rowntree Mackintosh. 

This success was given a 
special flavour— the Queens 
Award for Export Achievement- 
our second in six years. 

Rowntree Mackintosh 

19 7 8 



1974 Wiggins Teape receives 
The Queen’s Award to Industry 
in recognition of the company’s 
technological innovation in the 
development of a highly 
technical photographic base 

1975 -1977 While the paper 
industry in general suffers a 
recession, Wiggins Teape is in 
the process of doubling the 
value of its exports to 150 
countries. Of the many 
different kinds of papers 

manufactured bv thc 

company, it is the Fine, Speciality 
and Technical papers which 
are at the heart ot its export 


In a three year period, 
Wiggins Teape s exports 
increase in value from ^36 
imiiionto 3 T62 million— a figure 
representing 28% of all the paper 
exported from the U.K. 

- 1978 Wiggins Teape receives 
The Queen’s Award forExport 

Wiggins Teape. Real export 
success, on paper 


Wiggins Teape Limited 

Gateway House. Basing View, Basingstoke Hants. RG21 2EE. 
Telephone Basingstoke (0256) 20262 



The Department of Trade helps exporters by 
providing a range of services and financial assistance, ^ 
On this page Lome Barling examines how exporters use these facilities, 
and discusses the Government s industrial strategy, apd in particul 
the work of the sector working parties on stimulating exports. 

, A 

• ?■: 



AT A time when srowth in fores'' * .'“f! 1 *.™ Stiv* fZrovc^th^ XSremra* nf British Oversells Trade Board's rent. 

The 2-2 per cent .to around 6 per 

C„‘ r ,r SK vandntTes to he i^^psnies "and ' in M rae a llarice, Entry h.»» ^^ff^SSJtSSS. 

rr„»Ahe only- means of i^prov. J-J»— - - systems- apprnac,, In S1W*# •“> 10 

ins; British competitiveness in the although the product range i* regarded cant aid to export* m crease its exports by 33 per 

export markets is by cnntatntn? heir J"S at ion is meant onlv as essential. The advantages of 0 n credit insurance and 

costs, raising productivity and this cla j _ j: _ thB KP i PC ted markets approach is finance-facilitating guarantees. ^ _ 

. ossification is mean: only as essential. The advantages of On credit insurance anu Ifl lh0 fnur vears t0 1981, 
WM* —■ T P T °ducu vi ty and his & fi t indicatjon of llie 3 selected markets approach is finance-facilitating and 171ore particularly should 

improving design and delivers to r J'- * also stressed by some. the memorandum pmnts out id the usua j reduction in 

performance. . P Ai-hou-h" aggregation of Western Europe is the repon that the threshold * or expn rts when the home market 

This is the view expressed in AJ £ jecljves - can be based most frequently mentioned as bon d support scheme ha. bee j# ^ , It is pointed out 

a recent memorandum on the «pt ^ cnvenn£ . just an opportunity area but * progressively redut-.d f™™ 1 - f that over the past eight years 

tlovemmenfs industrial - iiaJf ^ SWP exports, tlie SWPs see their best opportum- original level ^jj r “ ln * wd the UK industry has taken a 

strategy, endorsed by the ^nal Economic Development ties lyms outside Europe. £20m mr more) A 3 " ' las t lower share of the world market 
Chancellor. Mr. Healey arid the ■ ^ earlier this year, the ranging from the U .S. to l0 foOO.OOO in Dct-.n W bi| e other ma j ar exporters 

Secretary of State for Indust. . . d iries concerned were con- Cmnecon. OPEL and develop 1 n„ year. . r ^ have maintained theirs. These 

Mr. Varley. Tt also points out jd - ng e;f p ort growth for countries. But in a number of A thorough revie losses were greatest in the most 

that these are not thinss which g() t , ittle under three these markets the difficult cost escalation seben - ■ » ra pidlv expanding marker areas, 

the Government can do for in- a 35 per cenl per trading environment involves oj ^ Despite the prospect of in- 
dustry. _ ... annum CTowth for 1971-76. considerable risk and heavy in- try. had also been c* . uld cre asing competition from many 

Moreover. North Sea oil » si , n ilarly restricted number vestment for the com panies. in considering ^ethei emerging countries in this 

seen as more of a problem than f ‘ s ^-p s suggested tittle or no A number of SWPs also era- he continued. Ea* - . , r or a sect or the SWP has adopted an 
a benefit, in that it will make **£*"%* j„ imports in phasise that the nature of ex- the scheme was extended for sector q[ whjch it 

it more difficult to the t prices from 1975-80. port expenditure — a negative . ie sports feels the industry should be able 

exchange rate as an instrument ^ tQE;elher . these trade objec- return on capital in the early ,A; r vhSSdng to achieve. This involves an 

to improve competitiveness. Any were ^ en seen t0 result j-ears followed by a slow build- «rf ^ r hat their annual increase in exports of 

inaproveraent in competi a gs i m p r0VT nent in the up in profit — may inhibit com- on exports, it ■: depend 10.000 tonnes of constructional 

tiveness as a result of sterling balance of around £2.5bn parties from undertaking the stated steelwork from 110.000 tonnes 

depreciation js regarded as lfJ7 - price5 _ This was slightly necessary- marketing activity. t o a great extent - n j n 197 e t0 160,000 by 1981. 

dangerous in that it brings with smaJ]er ^an what was implied The main problem areas are their a ^ 0 ” u r ^^ f <llhstit Ti. Two main factors should 

it some -increase in the rate nf ^ iatr’s reported objectives. ‘ 

inflation and can also mean less ^ adjusted again in 

responsiveness to market f uture . 


The main purpose of the - . .. i 

fiovemment's industrial |^)|jlbst31ltldl 

strategy, launched just over two 

- . Two main factors should make 

it some -increase in toe rate ni bv lfl7 R’ S reported objectives. seen as; ports (through ■■ . succeS s possible, the SWP 

“ ® Financing large scale projects tionj and improving tn believes. These are the large 

with long lead times and ar^o- dustnal base. amount of spare capacity which 

dated substantial working The electronic consumer wUl prevail despite the short 
capita! requirements: goods SWP. for example, aims but rap i d growth in demand at 

B Providing long-term risk reduce import penetration in home, and the greater aware- 
31.0^0.-, . — ... „ v . flr cwp« are still capital in order to invest in its sector from over 40 per cent ness which many companies now 

years ago, is to make Britain s Howe er S are senice and at present to 37 per cent by appear to have developed 

manufacturing base fu,1 > fj^^nectaculaf improvements spares facilities and increased 1950 and 35 per cent by 1984. toward 

nationally competi ^e tiiroug Sock -levels: Lis export obpedive 

a substantial unproveme f t th ^ trade intematinn- • Supporting tendering costs cre ase sales abroad 

perrormanoe. ... h - M j not now expected to im- and feasibility stud-ies. obtain- 1975 terrt oE £78m . 

much as was ,hM sWpM 

P fnSn«nt Ud u7de P 3o^ I rd re ^opportu"a b rn!dTn Expanding SSUSrfS-V 

=!' "ere “e. up tt egrieu.ture. pub.ic utilities. “ J„^ s . *he NEDO of 20 per cep. tt » per cent 

report on their various Indus- transport and infrastructure memnnmdum ^hat in tihe ’"J 980 and 83 P^ r ieat 3 
tries. After a difficult economic requirements. The rise in on ivatfi sectoTt jofC. ECI and 1994. ^ 

period many of these SWPs prices is also 1 *« 1 other venture capital instUu- . The 

have reported, with particular created speela! opportun'ties ^ ^ capUaL increase m e ^ wrt v 5 l ^f 

reference to their overseas for mining machinery and ^ expanding its be centred upon We 5 iern Euro 

activities diesel engines, and opportum- and osexpan ^ markets in «he short- to 

Out of 16 SWPs which had ties for higher performance role in [ some «eas. medium-term. For colour tele- 

renorted hv Februarv this vear. products and production pro- It also P?. ints r ° n vision, for example, the UK 

SSe exnerted S Tncreas^ of cesses, computer control and Export Credits Guaranty .to J f We ^ Ea^an 

their shLe in world trade by automation equipment are con- ^1975 markets by 1984 woiUd need to 

Sip^'iare " r^S 1 tte S.VPS P^^OP be fron, 

maintain their snare — I THE MOST significant direct 

Government involvement in 
exports for some years was the 
part it played in the £L0Om 
power station contract which 
Babcock and Wilcox and 
General Electric were recently 
awarded by Kowloon Electricity 
Supply Company of Hong Kong. 

For the first time the Depart- 
ment of Industry played an 
integral part in the negotiation 
of such a contract, and the 
Prime Minister took an active 
interest. There is now con- 
jecture whether this may not 
set a pattern for future deals 
of this kind. 

While it is clear that the 
Department of Industry’s role 
as main negotiator came about 
because of the circumstances of 
the UK power industry, the fact 
that it was a negotiated rather 
than tendered contract and the 
UK's special relationship with 
Hons Kong, the deal clearly 
broke new cround. 

Mr. Alan Williams, Minister 
of Stale at the Department of 
Industry, was in overall charge 
of an operation aimed at provid- 
ing an attractive package of 
equipment and finance, and 
Lazards was appointed hy the 
department to advise on finance. 

General Electric was ap- 
pointed main contractor by the 
committee was 
development n 

riating procedures. They were 



: fV ' - * a 



■ r ft 

' r 



, ? 

».?r ccjvt by appear to have developed fhnmolo (mm P F W g/tth firilf Ltd being sfeTtt tb^jSyi jLarska fdruse tfl 

« *»' towards promotional efforts for Nine taring . V;.-‘ . ' 

re :s to m- exports. . . . , . ’..l - -A - 

f n>m th eir v •; ■■'}■ "-‘'j * :ir.' jr ‘ j -. : iv A /" : - w " 

to £150m in . - • ; ' : 

;* i r**’- 

■; ,v- _ f W 

.".l-isient m 

. /4nd 

--it n~- 

A model of the proposed United Arab Emirates National Assembly EaU being 

designed by architects and tovm planners, John Brunton and Partners. r!A n ' ="' 


heme uuaraniee ocneiue mju uuuuuuui usmuiuuhmh . * - -j ,p. • . 

nrocedures Thev were Overall, the BOTE now faces the first agreement for its use £20*00 toany one proj'ecLCor^ 

Mr Ar aS ?nTr^Iacrtnnald an astis- more difficult circumstances in has been signed with Osro. a panies arealso expected to sho^^ -r,;,, .. 
mnt S er?e[an ar ^ depart- which to promote exports, due Hemel Hempstead-based com- that their proposed, jenture 

men t.* 'I Norman S^oU wn- tn the slowdown in world trade P™y which manufactures metal a yrdl-planned package ar 

j rpr nnA Mr and a general tightening of and plastic finishing materials.- that they have the capability . 

woVm/rket” 1 ^ Under jhe scheme, the BOTO carry through the project. 

lor or Larards. Tbe success of Export Year can provide 50 per cent towards Mr. Roger Selmm, a -director 

dear advantages has done much to persuade the eligible costs of a venture of Osro, said that tire scherr^ . 
legotiation. which industry that promotional acti- in return tor a levy^ on sales gave his company the confidemx Wlrifi 
d parflv hv Mr. vities of this kind can be useful receipts on. a company s exports. one tk e risks of a nej. v 

John Lippm. a Deputy Secre- in bringing home to all Eligible costs are broadly toe venture and believed that w(5$$ 
ran- at the department, was that employees the importance of overhead costs °f the artivity company could build up sales Jr* 
the buver was dealing directly being competitive, particularly which are written off as the U^. over toe n^xt thrt<!['. ;r 
with tlie British Government, a when selling abroad. But the inenrred an« can only be re- 7eATSm Its main .-cohtributic^A* ' r;: 
'■ilt-edged client. question now vital to manage- couped by tne exporter uirougd WO uld be towards costs of offici S A . 

ment is whether this achieve- hisprofit margin on saies. and staff in thenew markeL-^;:-- .13 
iTIniicnal mem can be sustained and Th e investment _ period, ' The BOTB .said that Osnt ,jJ ,-:i 

j U HU Midi penetration of markets (often at dunng vbich contributions are application had been speed l- 5 ' 

The eventual deal, whld, *« vans Iderab.e co«,_ «»_bc W- SSSS 

Agood deal depends on the 

We have grown with Hong Kong and as one o f 
the largest banks in Asia we are in the best position to assist the businessman. 

With over 400 offices in 40 conntries, we can provide you 
- with influential contacts in all major trading and financial centres of the world as 
well as a broad range of banking facilities. 

The Hongkong Bank Group 

With offices in the major financial centres of the world 

The Hongkong and Shanghai Banking Corporation 
Heed Office: 1 Queen’s Road Central. Hong Kong 
London: 99 Bishopsgate. London EC2P 2LA 
and in Edinburgh and Manchester 

T . — , , . me necessary imuai 

„ ... capi- the that * fc ? schemas mtotoe.XLS. market . 

the enthusiasm for expected la recover its contribu- . The aim of MEGS, while offe\ h , r ^cr.: 
?ar. the BOTB recently tiora -with a return on invest- inff a j d , which does not r r 

Export United. sire?s- ™ent «f -.5 per cent above the much away oa interest rates,-, c.: s ‘ 

*— 1 r "» u.. clearing hanks base rate. proyj^a a reasonably 

service without becoming .» s t^J f «!:r. r 
volved in -any in^depth -eivahii^'^^ii'^r 

| lead managers. Tlie loan was (ahse on the enthusiasm for 
the largest of its kind to be Export Year 

guaranteed by the Export launched Export ummi. ^ress- ”■ f , h z , h t 

Credits Guarantee Department, mg the need for cooperation hv cieann o 
However, lhe novelties of the ail members of companies. It "D ppri VPf*V 
agreement have caused some has the support nf the Con- X%.CCI/YC1 j 
problems, notably over the role federation nf British Industry. ' T '’" 

of ECGD. which arguably sh— ,J ^ — * 

j have had a more prominent 
lo play, and of the British i 
| seas Trade Board's Overseas 
■ Projects Group 
| recently reorganised 
bigger part in co-ordinatin 
| called jumbo contract 
British companies. 

The British Bank of The Middle East 
London: 99 Bishopsgate, London EC2P 2LA 

Members of The Hongkong Bank Croup 


lied jumbo contract Dias oy export targets lor specihc oi 3 per cent oi uie potenuai oeuer man. expecteo awn ■\i7‘ K v- a 
-ilish companies. countries or product^, while scheme contributions during toe ,Uke]y : that between .'.70.' ^ahd fit “f*a ^ 

Late last vear. following fin- others have opted to continue years when the contributions per cent of cwnpaoies. ^ 

jerahle pres.surc from indu.s- their 1977 export year in an are being received by the coin- approval Of, ..the .cpmpanit < - p..,,; 

in - , ECGD introduced an insur- effort to maintain some of the pany. v^ilch have applied, 67 per'cer 

aiice scheme providing cover for impeius qenoratrd. There are no limits to the siae have -a turnover, of Jess •.•tbaj’tr,,, ^ 

rompanies involved in export Following a long period of of the company which may apply £2m a. year, -al^is..ffeki]5;.1&.i : ! t :i |l . | :rj , a r 
contracts worth £50m or mure, criticism about the lack or on- but the maximum contribution smaller . companies . would. 
fgr a n experimental period of couragemenl for small to any one project is £100,000 set fair, treatment .- . : • - 

J-.- .. ", 

•h '/ ■ . ^ '■ ^ 

i ; . : %u?sss 


Financial Tunes Tuesday June 27 1973 

^y>y\ tj* 




- -<t- 

- i/L; 

■«aBg * ’*>- - -S' 


* i \ ’ r 
. -> \ \ 

Vi V J 


JUST ABOUT every leading 
politician; will be telling us 
this summer that people should 
be able to choose the age at 
which they retire. Flexible 
retirement is a slogan with such 
strength behind it. in both Wes- 
tern Europe and the U.S., that 
all parties will feel obliged to 
5 ay something positive ‘ about 
the idea. It sounds fine, but it 
leaves on one side the S64bn 
question of who will pay ? 

^.principle. the most appro- 
priate answer would be. “ the 
.nehatoneri. during his nr her 
• lifetime of work"' but the 
.^trouble with that is that a large 
growing prooortion of the 
perifloti Hipan which most re- 
tirwS-f people- depend is financed 
by'«s«rking taxpayers. 

Ke&iWe . retirement would 
add'jp this burden unless it was 
aoe^pahied by what would 
gm'qinit to. a revolutionary shift 
I' of the responsibility for pen- 
sions from the State to the in- 
di^dual-^that is, to a system 
of sMuarially sound endowment 

There is no other way. It can 
already be discerned from the 
grra^ng debate; in Britain that 
4lii#JScal hurdle lies ahead. In 
tbeft^S. they have begun to trip 
j over it, , following a new law 
5. that permits most people to stay 
| at iyoirfc- until 70 whatever their 
■ employers .or workmates may ' 
have' to say about tie matter. 

lads \ crucial connection 
between the age of retirement 
and the ; method of paying for 
It, Is. sadly, too often left out. 
Tb&'f-Jtiational Association of 
Pension Funds has naturally 
not - : ■fbi'gotten the principles 
involved, but its recent 
vofcunsrious report has so far 
.suffered the fate of being 
adopted as the basis of a sub- 
mission by the Equal Opportuni- 
ties Commission that whatever 
else happens the important 

Investment in 

■thing is that men an^ women 
should both be governed by 
the same rules. 

No one other: than 
an unimaginably courageous 
chauvinist would seriously 
quarrel with this, but the 
trouble is that a strong focus on 
equality between the genders is 
too narrow. The EEC has come 
up with, not quite a' recom- 
mendation. but rather " a 
practical proposal fnr dlsciis- 
cussion V that everyone - should 
retire a-t 63, which would mean 
three years more for -..women 
and two yean less fof men. 

Leaving aside some contrary 
opinions from the Department 
of Health and Social Security it 
appears fhat this compromise is 
the nearest thing to bring cost 
free — if one can adjust the 
equations to indicate that the 
savings on women's LateT pen- 
sions would compensate for 
men's earlier ones. Yet eyen the 
Commission must acknowledge 
that such calculations are neces- 
sarily Imperfect 


5aami*U5'ctiniuBumti.i«ri«»IIPmKWl Strmt. frqwUmn Pro)»«i«CT 

in the US 


persons of pensionable age in adult population 

15 'tt= 

’77 1980 

7 1980 1990 2000 2010 2020 2030Ht976 1981 1986 1991 1996 2001 2006 20T1 2016 

Although the proportion of pensioners In the UK is not rising dramatically, the number of very old pensioners is. 


If there is any kind itf option 
built in — and in this age when 
flexible retirement is a political 
necessity it must be — then, there 
is no certain wav of knowing 
who will take which notion. If 
the individuals really- were 
saving for their own. futures 
this might not matter. However, 
when pensions are increasingly 
taxpayer-financed then adjust- 
ing the rate of pension collected 
is only a marginal adjustment 
to an essentially uncontrollable 
inflator of costs. 

In Britain another potential 
inflator of costs is the declared 
policy of the Trades Union Con- 
gress, which has decided to 
press for a lower pensionable 

This first appeared in their 

" statement of objects " in 1925, 
and was repeated only a few 
weeks ago when Mr. Len Murray 
told the annual conference of 
the National Association of 
Pensions Funds that to accept 
the suggestion of a retirement 
ace of 63 for all would be "to 
stop back from achieving the 
policy that has the overwhelm- 
ing support of working people 
— the right to retire fnr all. men 
and women, at 60, on adequate 

To rub it in, Mr. Murray 
spoke of a phased programme 
of reducing the retirement age 
for men and added that the 
TUC “ would be totally opposed 
to anything that would deprive 
women of their existing right to 
a national insurance pension at 
60." This policy is preferred by 
the TUC partly because it is 
one of their sacred cows, but 
more importantly at the 
moment because trade union 
leaders seem to see it as a 
means of combating unemploy- 

The TUC is here being as 
narrow in its own view of the 

principles involved as is the 
Equal Opportunities Commis- 
sion. Many people in arduous 
and unpleasant jobs— coal min- 
ing for example — naturally 
want to retire early. In some 
such jobs a contract like the 
“ Thirty years and out" nego- 
tiated with the unions by the 
U.S. steel corporation in 
America would be desired by 
most workers and understand- 
ably so. Thirty years down a 
coal mine would be innre than 
enough for most people. 

“Grey power” 

But for others — a minority 
perhaps but a significant one 
—the opportunity to continue 
in work, particularly in the 
service sector, would not be 
unwelcome. It was the realisa- 
tion that this was so that Jed 
Congress to accept a brief but 
intensive campaign by ihe 
proponents of “ grey power " 
( pensioners' rights) in the U.S. 
to amend the law against “ age 
discrimination ".in such a way 
that most private sector 
employees are now given a 

Letters to the Editor 

new dynamic has to be intro- arguing strongly for the urgent and compare the share price 
duced outside the ordinary action which is needed to rescue movements of a “qualified" 
government grant s tructure?mat London's inner city areas and » f companies with a com- 

13 why the free port proposal help its jobless. It has urged on * C, Broi f„ of companies 
provides fnr a linked free tr 3 de Ministers the need for assisted £. hj b had g n M^ d ^eir accounts 
industrial estate with direct tasa- area status to he given to -“If, 

. tibis was attributed 

From Mr. M. Webber area stater She glSi id L^wcrS? 

Sir,— I am the convenor for tion inducements (such as exist London's inner city areas, for r ;„lL:- n n . “isrr.x.-nrll.o 

the hourly-paid employees at elsewhere in the EEC) and the further relaxation of controls S 5 ^; 

Westland Helicopters. Yeovil, use of the land bridge across over industrial development and. ■ 1 

The employees I represent are the M62 to Hull which would within overall public expenditure t0 ,“? e ,n ,. on cont-ru n - jhe 
very concerned with the profita- be a linked free port. ‘ limits, for additional government au , < f lt qualification. The dtfti- 

bUity of the company the profit There has been a shorts] giitpl resources to rejuvenate London's [55£ be ”7 n to for 

that is needed for dividends, re- failure to recognise that an east/ run-down areas. The Forum is intpossiomrj or pnmng. tor a 

Investment, wages, and security wesl lrade is hiehlv deiir- topping in close touch with f ”J**P of com-patues with quadi- 

°L e “ p !,°.^. e i lt * y. e L* h ° i able in order to stop the present •tondon Mft on the economic 

invest! money" equally aware. ball bureaucracy in so far as really effective done about p or example, most companies 
W 6 - started on the jnesent they appear to ignore the need jL the Ferura has produced a that receive a “going concern” 
piecework scheme in 197o- Before f 0r tb i s . country and the EEC booklet setting out in words and qualification do so because of 
ltS:>introduction we repeatedly , t0 trade, with the rest of the diagrams The stark fasts of their alarmingly bigb debt levels, 
told ‘the company that it would, world, in particular the London s unemployment problem. aQd ^ perfectly plausible to 
fl«vbe an improvement Within Americas, . ' and the enormous We still hiUve a long way to go bc/ieve nhat when a company 
1£ foonths the company was com- advantages which would accrue to convince bentrai Government announces high debt levels the 
pl^inmg-: as to the effectiveness t0 Liverpool, Hull and the EEC of London's yrgent needs, but share price will be adversely 
ofithe-system. Early in 1977 the ft tbe city's scheme was to be when we have, in the London affected. Of course, it is ahn 
d^hrty managing director of ad opted. Employment Forum, a group plausible to believe that an audil 

Westland Helicopters proposed, . . nlljHnns will have renresentinc all sides of industry n unification contains inforraa- 

statutory right to work until 
70 if they choose. 

The Equal Opportunities 
Commission will understand the 
significance . of such a law for 
women. As increasing numbers 
of them come into the labour 
market it becomes plain that 
those whose children are past 
nursery age can look forward 
to an active and possibly 
uninterrupted working life as 
long as that of some men. 

A woman aged* 40 would have 
a quarter of a century in which 
to pursue a decent career if 
her retirement age was raised 
to the male's 65. and the chance 
for her own equivalent of “ 30 
years and out" if the law over 
here allowed what it now does 
in the If.S.— work until 70. 

To those wno say "yes. but 
what about unemployment?" the 
reply is to look to the popula- 
tion figures. In many Western 
countries, and certainly Britain 
and the U.S-, the large influx 
of wartime "baby boom" young 
workers will continue for only 
a few years more. By the early 
1980s the' supply of young 


EEC Foreign Ministers end two- 
day meeting. Luxembourg. 

U.S. Senate reconsiders Anglo- 
American double taxation treaty 
following deletion of controver- 
sial clause exempting British 
companies from unitary tax pro- 
visions in certain stnies. 

Mr. W. "W'apenhams. World 
Bank vice-president, chairs three- 
day meeting opening in Paris to 
discuss further aid to Zambian 

Comecon annual summit opens 
in Bucharest i until June 30). 

Hr. Helmut Schmidt. West 
German Chancellor, ends two-day 
visit to Nigerw. ... 

Sir Leslie. -Murphy* chairman. 
National Enterprise Board, speaks 
at Foreign Press Association 
lunch, 11. Carlton House Terrace* 

labour will begin to slow down, 
so that the likelihood is of an 
increasing labour shortage. 

At the same time there will 
be an increase in the numbers 
of old people in the U.S., and 
in the UK an increase in the cost 
of giving old people decent care 
(because the number of very 
old pensionsioners is rising 
sharply). Flexible retirement 
is perhaps the only way 
of providing for adjustment of 
the size of the labour force, 
at the far end of thr> scale* to 
meet the peaks and volleys of 
the working-population curve. 

Much of what I. have said so 
far can be expected in 
the Government's forthcoming 
Green Paper on the retirement 
age. and provided there is a 
plentiful insertion of the pbrase 
flexible retirement, the 
likelihood is that the Tories will 
give three cheers and say that 
the only difference they have 
with the Government on this 
matter is on the soundness of 
the costings and the fact that a 
Conservative government would 
do them better. 

Such a Green Paper might 
suffice as something scratched 
up for a summer pre-election 
campaign, but without an 
answer to the practically 
unanswerable question of costs 
it will not be enough. In the 
U.S. they are preoccupied with 
the discovery that the social 
security system invented during 
the depression still leaves many 

old people in a distressing 
condition while anv hone of 
financing an improvement comes 
up against the mighty , force of 
the taxpayers revolt - that 

achieved such a triumph in 
California a few weeks ago. 

In Britain we have increased 
the state pension to a level that 
is historically high by British 
standards but still low by the 
standards of the insurance- 
based systems of the wealthier 
Continental countries. Yet 
there can be little doubt that 
substantial further increases, 
desirable as they may he, would 
meet taxpayer resistance of the 
type that has so shaken the 

And there is no getting 
around the fact that any move 
towards flexible retirement 
based on the present tax-as- 
you-pay principle would 1 be 
more costly than what we have 
now. In an ideal world there 
may be another option — per- 
haps a return to care by the 
extended family of a kind that 
is' still enjoyed in Japan— but 
in the West the breakup of 
that Kind of family is probably 

What is left is simply this: 
the hopes for our elderly can 
only be met by the elderly 
themselves. In working life 
they (that is, most of us now) 
must save more and must be 
encouraged by reductions in 
taxation on unearned income to 
save more. 

In later life those who want 

to work past 60 or 65 most be 
permitted to do so with perhaps 
only a modest reduction jn 
actuarially based pensions if 
the arithmetic can be so 
arranged. Binding future tax- 
payers — our children — to a level 
of contribution higher than the 
one we are beginning to find 
onerous as we support our 
parents now is a foolish prin- 
ciple, fraught with danger for 
the present generation. 


Nor is the danger merely 
fiscal. In this article I have 
deliberately omitted the cus- 
tomary hundreds of millions and 
billions of pounds with which 
we so often scare ourselves ' 
when peering into the future 
for pensions. Those figures are 
still there, but they are not the 
most disturbing part of the 

Care for the aged is not « 
constant in human society. The ' 
Japanese veneration of their 
elders is one extreme— the 
British tendency to place them 
on one side is dose to the 

As the burden on working 
taxpayers increases the extreme 
could be pushed even further ■ 
so that retired people, particu- 
larly the very old. might increas- 
ingly come to be seen as an 
irritating social burden. Such 
a future seems far from impos- ■ 
sible to anyone who has wit- 
nessed the shrinking back from 
social security that is already 
taking place. 

In short, behind the present 
rhetoric about flexible retire* 
ment lies the awkward probe* 
bility that the only people upon 
whom many of us will be able 
to rely when we retire is our* 

Joe Kogaly 

Today’s Events 

Confederation of Shipbuilding 
and Engineering Unions' confer- 
ence opens, Eastbourne (until 
June 30). 

Second and final day of Finan- 
cial Times conference on 
Scottish Finance and Industry. 

Internationa] Whaling Commis- 
sion annual meeting continues. 
Mount Royal Hotel. W.l. 

Road Safety Exhibition opens. 
Old Library. Guildhall, E.C.2.- 
i until July 7).. 

House of - Commons: Remaining 
stages of-- Employment - tCon- 
tinental Shelf) BUJ, House of 
Commons (Administration) BUI. 
and . Parliamentary Pension ' Bill. 
House of Lords: Transport Bill. 

committee. Judicature INI) Bill, 
consideration of Commons 
amendments. Community Service 
by Offenders (Scotland) Bill, 
second reading. Petroleum regu- 
lation orders. 

Select Committees: European 
Legislation (subcommittee 1 ). 
Subject: Sheepmcal marketing. 
Witnesses: Imported Meat Trade 
Association, Scottish NFU <1030 
am. Room 15). Nationalised In- 
dustries (sub-committee A). 
Subject: Innovations in rural bus 
services. Witnesses: Transport 
and General Workers' Union (4 
pm. Room Si. - 

Pinal dividends: Emtity Consort 
Investment Trust; First National 
Finance Corporation; Halmas 

Imperial Continental Gas Associ- 
ation; J. Jarvis and Sons; 
Property Holding and Investment 
Trust: Standard Chartered Bank. 
Interim dividends: Ashdown In- 
vestment Trust; BAT Industries; 
SGB Group. 


British Shoe. 40. Duke Street, 
w. t British Syphon Inds^ 
Sheffield. 13. English National, 
11, Austin Friars, E.C., 12. Equity 
Capital lnd., 20 , Aldermanbury> 
E.C., 5. Execulex Clothes, Leeds, 
11.30. Foseco Minsep, 34, Queen 
Anne's Grdve, S.W„ 1230. Mappln 
and Webb. 40. Duke Street, w., 
10.50. Sears Holdings, Selfridge 
Hotel, W., 12 . Sears Engineering, 
40, Duke Street, 1L15. Silent- 
night Holdings. Manchester. 1L 
.Wire and Plastic Prods., Folke- 
stone, 3.15. 

ffwj^estiand Aircraft d W bicb complements government hessinoisin with wMch John debt. Thus it is not easy to 

the ^ ar represe ^ “ activity to which Mr. David Brennan and David Churchill d-ucQvp,. W he 4 her it is the debt 



•(rEv^Sje-sa me. Board insisted l that £ t h, s ‘ver? moment- conclude their artide. 

assembly *^1°“ there are in hand schemes for Richard Brew. 

flafTate before any a^e a ma j or re -development of Lime (Chairman of 1h® London 
increase could be P a J»- street Station and the old North Employment Forum). 

- 7 a %3? d » *' ,th J Western Hotel by British Rati. Members’ Lobby. 

a Bate rate system Dy Q the wate rfront there are two County Hull. SE1. 

AMU. -1078. Negotiations Have. h , My lmaginati ve schemes for " I 

<:anw reach ed _an impasse. wmaiinnai and -w ■ . « . -» 

r '»»■ <* SSTJHSSS XZfiSn*®*;*** Local authority as 

J ■ ? 3SE? anCe The ahead in the near future and the information which is important 

8 ic howevef ' still ™ is cu " enU , y und n e t rt ^ n S,S Spending Hence, given the neVessary 

^po S e so on° r start ^f^ew^vil service Freni Mr. M. Snomdon. “^ents* « 

ingS^by £12.50. . .. _ shopping development is planned finance (June 14) might have nrt u i I hS* 

■*sa4- real concern is the belief Qf] Central Station site which referred to a -major problem ** ” PWt * ^ h ^ 1 

"•tar the' Wratiand Aircraft Board _j Te a tremendous boost to whlcfr has 'been barely tackled. P r, onty. 

/tfifr-a- reduction of £13-50 and . ppnTrai shopping area. The Lookifig primarily- at capital Michael .T. Barron 

the audit qualification, or some- 
thing entirely different, which 
causes the price movement. 

In other words, since an audil 
qualification will frequently be 
published alongside other 
adverse information, it is not 
clear whether it is the quali- 
fication per sc or the underlying 
information which is important. 
Hence, given the necessary 
limitations of preliminary 
announcements, it is by no 
means clear chat the earlier 

Incorporated in Italy with, limited liability 


< ■! Opr: real concern «s ine on the Central Station site wmen referred to a major problem 7 . “ r 

bythe Westlznd Aircraft Board W jjj ^ ve a tremendous boost to which' has 'been barely tackled. Prtorny. 

. tnjrt^a reduction of £13-50 and central .shopping area. _ The Lookifig primarily- at capital Michael .T. Barron 

from piecework to fiat counc ji \ s itself under taking a expenditure rather than revenue (Lecturer in Accounting). 
(fiP^.'Eate wfll generate higher produc; com p re hensive new factory we find that the potential for London Graduate School of 

Vivify and profit This, I ij U ij^j n g programme on cleared learning from experience is Business Studies. 

• genuinely believe, would be sites and we have in hand plans insufficiently recognised. Sussex Place. Regent's Park, 

^disastrous. We have a enmpany f0J . the development .by private prob , em is acute in the , VW i. 

product, sk4Us, and pro- enterprise of. new omces in 1 public sector where capital is 

--aspects second to none- I can omy jioorfields area. The councils often g p Cnt to meet real but *nvfiIoc 

. - '-Ijepe tie people who plans for building new homes unquautdfiable needs. Having 

- '".money iii the. company use tnerr ^ OJ . sa j e have .set a lea 9 th p spent the money it is politically 

v^tbbr ity wisely, 
ifc Webber.' 


: Westland Helicopters, 
'retml. .. 


EEC textiles 

for sale have set a lead io uje spe Q t y^e money it is politically 
nation aod will bring into desirable to claim success for the h 2 llIG 

city centre a new active P°P venture and this allows little . u . , ^ r ,Tj. 

tion and new vigour. I. suggest roorn fQr cr | tJca j analvsis as to 

Serefore that Liverpool is doing how ^ mooey might ^ ve been gtoC omjM the 
a great deal to help ! tseJ J, spent more wisely. The absence European Commun.ties 

that the most encouraging lacior this critical facility means ■ Sir, — I am sorry 1o have to 
is the vast amount of money now t}lat ^ aWMty t0 ] ean i from return to this issue, but in bis 

being invested by P^.^. t y.p the . experience is only available letter (June 23) Mr. Beson makes 
prise in development within me tQ a very nura ber of people an implied accusation of bad 
c ity; who happen -to be close to the faith which I am afraid I must 

t hone that Mr David’s article particular circumstances. Some contest. He alleges that the 
j letter will encourage criteria (e.g., reducing accidents) Commission made a deal on 

an “ a industrialists to come to are comparatively easy but textiles without the knowledge of 

.^ogress <*>■ p, 

: topns the chairman. nd # ^ letter will 

'Jinking and Land Committee. more industrialists 
Liverpool Liverpool and Merse; 

. The article on. Me^ey- ^ey will be assured 

; - «fle^Expl6diBg:the myth oy welcome. 

flrarnin I and Merseyside where ot hers (e.g.. improving amenity the member states. Having 
h!I!r Wm he assured of a warm or appearance) are much more spoken with the Commissions 
“ e / difficult. negotiator, who discussed the 

The next step is to relate cause 

f or i«! tn relate cause proposed talKS wim me re- 

?hFpS«f indus d Bumings, Dale Street, SoveremeZ 

BSSU. on Lit^pooL datable. The complexities of the 

- relations situation y- 
^.ciftxx . " we in Liverpool ■ 

London s 

achievement becomes more pre- ™ 

SSffiTS&a. is ^Ib^d: 
balanced objective views at this We realise that the Corn- 
stage are difficult. Nevertheless munily's procedures Tor negotiat- 
if increased value is to be ing with non-member countries 
achieved progress must be made may seem complex and can give 
in such analyses. It is important rise to misunderstandings. If! 

the recent objective IF increased value is to be ing with non-mem Der countries 

' the image nrODlCIUa achieved progress must be made may seem complex and can give 

showing tnai on F Member ol Greater iD analyses. It is important rise to misunderstandings. If 

*1k2S2&Fi$ ^justified. Ufar Chinffford t0 rec ognIse the opportunities of there is a misunderstanding over 

■ »..isss ^ e ,o«u.e“ IT&SSr.Bo* . . 2518.^3 Wi “«£ 

ffg-nss: ssssss, K, r, S.tlS 

. Share prices 

f.- would do ?io 'J consistently fails to recus^ flnd v the Commission is bound to con 

- Jfteteyside . than an magnitude of tne p pUt j Q||H|tc suit with the member states on 

Charter for ®J Son adtoes to at *ucli AliU its negotiations with non-member 

- uWtiod' OK the lines so conuflo London’s i naer London’s From Dr. SI. Barron countries: but it is not the normal 

. Effective in the U.S. dist advantage. £ e bfc en Sir _The article by Dr. Firth custom to discuss with other 

'Axcniec-ii of Uie'idea of a .‘partnership ,A r .-Vesaons by / TllQ p 141 - oa the effects of audit parties the details of a negotla- 
SiSlSrSdu although , put only jumted concesa * share prices tion in progress. It is. however. 

iberals onfiin* | 0V ernmenL of 3_^. rihed an interesting piece of the Commissions firm practice 

vAteard -by -the Liberals e gove ajuestton dtecribed an mi ier®u s h tQ u whh the European 

In the second JJ** regional c,r ff°T O „d 0 ti Boroughs . ^ ^ pe nod Richard Mayne. 

that if and TUC, the 1 » London ^? t Jy announce- 20, Kensington Palace Gardena, 

aSSSHflL ? • ’ ££■ ^“ c if. U r 0D of epmm^ wd Mdit ouaUi cxUoo. Lomkm. VS. 

APRIL 21, 1978 

The annual meeting of the shareholders of Banco di 
Roma, held on the 21st April 1978, has approved 
the Balance Sheet as at 31st Dec. 1977 as well as the 
relevant Profit and Loss Account which closed with 
a net profit of Lit. 6,502,204,075. 

The Meeting has also decided to distribute a 10% 
dividend, to allocate Lit. 2.5 billion to reserves - 
which therefore rise to Lit. 25.5 billion - and to carry 
forward the remaining profit of Lit. 136,360,507. 

The aggregate total of capital funds, consisting of 
capital stock, reserve - equal to 63.75% of the issued 
capital - and balance carried over, increases to Lit. 
201.3 billion. 

Deposits received in Lire and foreign currencies as 
at 31.12.77 were Lit. 1 1,275.7 billion with an increase 
of 16.04% on the previous financial year. Loans in 
Lire and foreign currencies amounted to Lit. 7,852.8 
billion with an increase of Lit. 946.5 billion (equal tb 
13.7%) on the previous financial year. 

The meeting has nominated as Directors Avv. Ugo 
Niutta and Dott. Alessandro Alessandrini. 

As triennial mandate of the Board of Auditors had 
expired the Meeting was also called to appoint a new 
Board for the three years 1978/1980 and nominated: 
Prof. Carlo Merlani, Chairman; Dott. Gastohe 
Brusadelli, Prof. Paolo Emilio Cassandro, Dott. 
Fausco Persegani and Dott. Aldo Serangeli, Regular 
Auditors; Dott. Domenico Bernardi and Dott. Enzo 
Donnini, alternate auditors. 

The meeting also accepted the proposal to increase 
the capital stock from Lit. 40,000,000,000 to Lit. 

— for Lit. 10,000,000,000 by issue of 2,000,000 new 
shares at the price of Lit. 5,000 each to be offered 


in option to the shareholders on the basis of l.neW 
share for every 4 old ones held; 

— for Lit. 20,000,000,000 by Issue of No. 4,000,000 shares 
of Lit. 5,000 each to be offered free to the share- 
holders on the basis of I new share for every 2 old 
ones held. 

Consequently the Art. 6 of the Statute is modified 
as follows: 

‘The Capital Stock is fixed at Lit. 70 billion, consist- 
ing of No. 14,000,000 shares each having a par value 
ofUL 5.000. If 

The Board of Directors reappointed Dott. Leopoldo 
Medugno as Chairman and Dott. Danilo Ciulii as 
Deputy Chairman. 

Aw.Giovanni Guidi and Dott. Alessandro Alessandrini 
are the Managing Directors. 

Avv. Tommaso Rubbi is the Secretary of the Board 
of Directors. 

31 DECEMBER 1977 


$ thousands 

Cash resources 


Investment securities 





Capital and reserves 




Net profit 


been ment of the audit qualification. London. WS. 







Whitecroft down £0.75m to £4.25m 



IN LINE with indications in their 
interim statement, the directors 
of Whitecroft, textiles, engineering 
and construction group, report 













Date Corre- 
of sponding 

payment die. . 


Aug. 7 
Aug- 4 

Aug. 17 

Aug. 15 

o.sat.; j 

1978 year. 

At half-way, profits were down 
from £2.1$m to £L7Sm and al- 
though directors said they espec* 
ted second-half results to be 
substantially ahead of the Erst 

would not achieve the profits for 
the 1976-77 year. 

the dividend is stepped up to 13.4 p 

9p net. 

Turnover for the period was 
£55. 11m and excluded that of 
George Longdcn and Son, which 
was closed during the year. For 
1876-77 turnover was £55.96m but 
included £6.Sm from Longden. 
Also included in the turnover for 
1977-78 was the group's share of 
associates turnover, with the com- 
parative figure being restated. 

There was ■ an extraordinary 
debit of £0.75ra for the year, repre- 
senting mainly the loss on closure 
of Longrico and includes the 







Adda Intnl- 



Land Securities 



Bankers Trust 



London Prudential 



Bilton (Percy) 



Pentland Industries 



Booth (John) 



Pickles (William) 



Brunner Investment 



Readicut Intnl. 



Brunning Group 



Reckitt Australia 



Cattles (Holdings) 



Regalian Props. 



Cronite Group 



Tebbitt Group 



Cummins Engine Co. 



Trident TV 



Dawson International 



Walker & Staff 



Eldridge Pope 






Grant (j.) (East) 



Wilson Bros. 



John Booth 
Brunner Inv. 


Country Gentlemen's v -- 


Eld ridge Pope inL 

Sckong Rubber ........... 

Of £110,000 f £14Q.U0(D • The P roG t PL^i hlt 

last year totalled £tiSa,000. J^* 1, £***** 

Revenue from forms and estates JJjfcon Bros. 

is of a seasonal nature and Whitecroft 

accrues almost entirely tn rbe Dividends shown pence per share net except where ^ , , 

second half, the directors say. ‘Equivalent after allowing for senp Issue., j On capital-figure, Haa the saiseja^ b^L 
Present indications y fe that increased by rights and/or acquisition issues. . . ■v't-iised 

incomes from this source for the 
full year should shew an improve- 
ment compared with 19”*- 












chief sees 

Regalian group loss 
reduced to £ 1 . 95 m 

™ this MT. 

would h3« heen-£Lfl8m».ag3fc3t' 
a rise 

-v- per cent- . ^ r - > 

' >!> -Turnover 1 fia^ the. i 

*rS -months of 'the ,,-cucrant -yet fev»: 

.:Y vJ^draost 36 percent 

’ -•'.year compared.JiTOl:' e ■.•sargef- 7 ' 

i ‘ 26 per cent 
"ivr.- Costs of hoimOTg.ijwft; 
^Uvwp^eharpJy ^eeeat&^tmtf 

' ®is wasi 

the let®-' j ■' 

... 'hara'Tedi 
**romT. £0J59bo.^ i 

:3br the '.V* . : 

. '-.I* 

^^pCT Cent - 

CROUP results of Regalian Spoils and Gift prospects tortbfi 

Properties for the year ended (Duhricb). _J. Snuth ana Son. extremely good. - 

sr.^ahpiinr, :;pa. s ' - : • 

ii^fasv y donahV r --\' 

. unusuau-v r<r »M. BETS — 55 =t >tLS6SasSB 

1977-78 year are uniike.y to be oS ^ 

exactly repeated in i^e current ttaf as a resuJt of release of Invigorating Property -Tr*w one-forffve setip^aise 




year, says Mr. Alan Smith, chair- ™ company fromks Co. 

man of Dawson International, in nbUffations < n 

value as well as income growth, his annual statement. However, guarantees and obligations 

'.Mr. R. 

J tbe^ 





3 -. 

Manor DeralB^mmu* . - - — 
in (Ipswich), . Olympia - Motcir 

, - «“ annual staiemcnu of its subsidiaries, the Auctions (Derby), ■ Raymond **« f 

he tells members. although sales volumes and mar- not Himmich Butcher and Son (WatfordK-Nltft 

As already known for the year gins are likely to be lower, the L Eziefula, VST (IffO, 'NefisSre: years 

to April 30, 1978. revenue before group is weU able and better company results are Results Cleaning Sendees,^® 

tax unproved to £263,5$y equipped than ever to meet this. j ne f / - Hamm, Abhy-Ray Trading OttM - 

iST^IS 1 X2S2 (S) SS and^ V ' the 6 net As reported on June 20 Dawson SpiUIcaniS *0 shareholdere^d Bay Engmeering. 7‘ 

■ Ei3 '-a<a (£2b3,00S) and the net nM .r->T nmfits r>l .S.... _ e . .1 /r««« Busines r and Trade Exhibitions fB tue &nop®»«K u-p/e op. ri* 

In his annual sUtement, Mr. 

ana me nP r As reported on June 20 Dawson significance to shareholders an . 

Hividmd i^nkS'ta^^n^rodnt ach/eved record pre-tax profits of sh 0W a profit of £337207 (£83.653) Boxmess and_Ttade g— ■ . . - - ftC tba 

Qividena is raised to _.S5p (— 4p) £ig.a3 m f or ^ 3IT h 31. WiS. an hirrher turnover of £438^82 (Blackpiool), Freelane Sales. John s, .°^ an ^r^iTr^Tb .wmpareg j.v - 

pe f aoP «, p.,„« — jj- Per ^ ■ 

if led TnmoDpr for ihe piimio rose Square Deal Garden SoppEes,- EE « L j -.' 



As already known, 
revenue rose from £l.59m to 
Since the end of March the jijgftp for the year to April 30. 
group has acquired Moorlite Elec- 197s. and earnings per 25p share 
trica] for £3.24ra cash; tills com- were better at 2.594p (2.414p). 
pany turned in pre-tax profits of The dividend is lifted to 2.55p 
Jt0.71m for the March 31 year. t2.3p) net. 

Net taneible assets per share of During the year, the directors 
Whitecroft were 22S.77p (215.31p). decided to invest more in the U.S. 

and to make an initial Investment 
9 comment in Japan and to pay for this the 

.. .. . . _ . v- - year compared ivith £10-37m 

lime, on turnover up from £67.26m 

3 pW§ WMim P^£S 2 S g?r: 

h , 3 r£n% T^rounVn^nXv r r Sand d JdendV ° feting 20 Fenchurch Street. maxl Mys - and il *• ** 6 ^ torS [ SSSK WW.476) but before tax **»»■ ' " as a 

ffoodw”uf U S P bcy As already known, pre-tax EC _ on at i?45 anL ^ mtenuon to maintain :ue inherent Q f £fii,ni i£84,73I). There is Pegasus Household Goods. ^ ingg 1 

gooavMi . »i-pniiii rnw» from Fi.5t»m to strength and efficiencies of the a js 0 a provision of £88,960 Independent Radio Sradtos^'^nent 

group. Dawson ouns world ( n'4,529 ) against investment in Vulleon; Tive Star ■■ Maritime; 
famous brand names which wiu j oint companies. Eurotoae. The Great American 

be increasingly promoted in order It been emp hasdsed in the Success, North 
to increase its share of world sharebolders , funds are Ronsol Insurance 

markets - derived from profits of Regalian mark Smith W 

With their advisors, the direc- properties Ltd. and these profits Danny Quastel usookuxslkisbj, 
tors are looking at acquisitions arise mainly from the manage- SL^^SSfiSl - 

to broaden the groups existing ment agreement, the directors SWk* Bealail, ana-- Cmm f m a it — . - -- - -- - - 

business, and also in other related state. Properties. . ' 

industries. It would be prudent therefore 

Mr. Smith says that the group t© sound a note of caution for as 

large holding of Emprunt 7 per 
White croft's profit shortfall was cent FFr 1,000 Bonds was sold, 
held at 13 per cent in the tradi- A start has been made in reduc- 

Upturn at 
J. Grant 

KigaS^iyVariaWe^rate , irl ,t • 
hn stock . from: - “ .. 

i/»aJ PPnfln«Hfrr isfftv ■ " - ' 1 . ’< .*• •' % ! — j 1 /} Iff 

ical expansion ii^ this vay 

For the year ended January 3L 

Uona,,, taportaot ending S^SSf TZSjTSi SSL EtR US* S^TOJaSTd^SrS 

First half 
rise by 

Brandi office^ - hicreasecL frthh ; M<ieem^^ oa June 29, 1983-^ : ' 
seven to>Jl and , three eatisting^ v :aht8ne%«St be’Tadd bn. 3m ■’ 
'•# -.offices were re-focated 5xi‘ nkrre ;.^^i»ecem3s^ -^whh =}-. ‘ 


half folloudug thel 8 per cent WaterBc^rd preferenrestocks Grant and ^ (East) (house iur- **£*»"* BTfSaSlfi SS 

slide in the first six months, and this has had an adverse effect ni&hers). rose flOa.OOO to £788,000 ^ vear^ there was a olaoned st< ?^ .which wfil affect turnoyer 

Profits from textiles now account on revenue, but should improve with turnover increased from “i* year there was a piannea and hence pro etability m future 

for half the total though last its capita! position, the chairman £lf8rn to £14.4m. tba^n Turtber £5m ^ 

year's contribution fell from adds 111 h,s annual statement with « iairman says that a further torn Current trading gives rise to a _ __ ^ 

£2.4m to S22XO before tax. Sales Tb e 20 largest equity invest- the accounts, Mr. H. Oppenheim, * currenuy reasonable expectation of the ^ c ^.m-D^ ceasedtrailing<mMar*-rf. : >eh : g--stdckfBxefimge.- 

here were mainly affected by low ments by market value at the f he chairman, says sales for the William Baird and Co. holds maintenance of profit levels in FmyT HALT profits Ktoreatffl 31, 1978. v ' : '-Bxt6uc6tO tile-issue arfe !PM -• ! - 

consumer demand for White- year-end amounted to £9.48m or firei three months of this year are 28.3 per cent of the equity: Wood- the present year but the replace- the Cronite Group increased ftom-. The Derby store has smCB ^ 

croft's household products and 31.1 per cent of the total portfolio slightly ahead of last year and, bourne Nominees 18.4 per cent; meo-t of stock at reasonable cost £1 15,000 to £153.000 and sno gid-re-opePed ‘as a Ewbanks Discount- - • ."V;; -. . • ..4 

cheap imports, while reduced of £30.46m (£2826m). Unrealised providing the genera! economic and Prudential Assurance 6 per will be no easy task. continue to show an nnprorameaL Centre and expansion ef- ti» ^CTPPr amhi cor "■ x. ^ . 

orders from the company’s largest surplus on investments stood at climate remains stable, the direc- cent. The Board is investigating fortbe year, tbodirectors Ewbanks ^ operations Jn ■ -J /o -si" * 

customer added to problems. The fw.Ofim (£12^3m). tors look forward to another Meeting. Edinburgh. July 18 at various commercial and industrial , *™ e «5S2? n .®iS2!5s “ areas » planned forthetnto^.':-|CQ-£’QBryF|lSION ' 

year. 11.45 am «ri»>mp« u-ith » vipw m Mi^hiich. from 0.73127p to 0B0»37p per-wp year. j.-. .#.=?' -TtV * * 

ins alternative 1 soureesof *° r ?!& __?t “ insurance faroldiag_ .com-. HipSatAof England axmour^ 


building side is now concentrat- At April 30. 1978, Prudential satisfactory _ 
ine on smaller contracts while Assurance Company held 9.5 per An upturn in consumer spend- 
the recent closure of loss making cent of the equity, Scottish ine is expected at the end of the 

subsidiary George Longden will Widows Fund and Life Assurance year, but there is. as yet. no sign 

accelerate this process. Orders, Society 9 per cent London and of any large increase, the chair- 

however. are still hard to find Manchester Assurance Company man says. 

and margins have been squeezed. 6.5 per cent and Pear! Assurance The year's profit is struck after 
Building and engineering supplies Company 8 per cent, 
were bit by much lower profits Meeting, Winchester House, EC. includes 
from the Belfast subsidiary which July 18. at 2.30 pm. 
contributed only £100.000 against 

Statement Page 29 

£4m last time. But the group's two 
engineering companies are both 
doing well and with Whitecroft 
In acquisitive moods this sector 
looks its likely targeL At 207p 
the shares are on a p/e of 5.6 
and yield 10 per cent 


Advance seen 
by London 
Prudential Inv. 

interest of £303.000 ( £339.000 » hut 
a £10.000 (£87.000) 

decrease in deferred service 
charges. Tax took £434.000 

A maintained final dividend of 

at Walker 
and Staff 

Winding up 

Orders for the 

Tbmover for the Enti &x business ■. together . with- -; the -i97$-7a..,. . ■> 

months amounted to £SL7m againfet acquisition of Barradoigfr and This stndtciriR be redeemer " 
£2. 75m. Profit is before tax pf Bowden id Rotherham, .-.-v par. on September 28, 1 -r 
£80.000 (£58.000). V-.-t ' Hadrian Computer Services Redemption^ request forms valLr: 

Hie group is in investment continued to progress yrifh.-tuxnr IssnedL.on Jifiy 28,- X978* ■ ;-! 

compulsory bolding with subsidiaries engaged' 

winding up of 47 companies have in design, production - and sale of 
been made in the High Court castings and fabrications in nickel 

and chromium alloys. ' 

Wilson Bros, tops £lm 


In spile of worries over worsen- 
ing inflationary trends in the UK 
A petition seeking the winding and U.S. the directors of London 
up of Drummond Investors, the Prudential Investment Trust con- 
financial services company, was tinue to believe there are 
adjourned for a week in the High attractive investment 

0.4375p maintains the total at DESPITE RISING from £61,495 to They were: 

0B75p on the privately held capl- £71,847 in the first half, pre-tax 
tal. Earnings per 25p share are profit at Walker and Staff (Hold- 
shown at l"-3p (17.2p). tags) fell from £197,840 to 

Extraordinary items total £31JK)0 £180,697 in the March 31, 1978 

(£315.000) and debenture redpmp- year. ■ ' 

tion transfer takes £20,000 After tax of £15^67 (£36,465) THE SUBSTANTIALLY higher weeks of 1978 with s^Ies .ub — 

and an extraordinary profit of profits expected by Wilson Bros, per cent on the ..comparative 
£6.623 (£3.147) profit was £171,353 publisher of greeting cards, for figures for last year./- . 
compared with £164,522. Turnover the year ended March 31, 1978, Overseas hotels. 'produced aui 
was £Z.28ra (£2m). turn out to be a 37.1 per cent. Increase in trading profit of .JM 

Earnin'’* ner 5n sharp a rp to a record £ 1.09m from turn- per cent with most _of the increase 
shSSm at 731o aearnst 716 d and over “P 202 P er cent t0 «*J»* flwn toe Hotel de France 

tb? dividend is ud from 05143 d Firs ‘ half profits had increased et Oioiseul m Paris, while the 

to 0 574370 from £346.174 lo £486,029. Park Hotel in Amsterdam pro- 

Com para tive figures of »» A net final dividend of 0.757 o duced a small improvement 



adjourned tor a week in tne Hign attractive mvestment oppor- g - ^ 4.2 

Court yesterday. Mr. Justice tunities around and that the 1^. OrDOrBlIOD 

Oliver granted the adjournment company should remain fairly ~ 

after learning that a scheme of fully invested, says Mr. M. B. Profits of the Rhodesian i^umparauve muires oi me -y. . . • th r „ nr i nn 

arrangement for the company Baring, the chairman. Corporation amounted to £204.000 engineering supplies stockist and 5 a . l ?® s toe totol from 1^57p to uunng tue _ ,7 “ “r" 

was to be pul before a judge for By this time next year they against £270.000 for the half-year distributor arc adjusted for ED L403p. If the Income tax rate is noteu wwe pr te»ao y 
hi-; approval nn Monday. hope to show an increase in asset ended March 31, 1978. before tax 19. reduced before the AGM on jajued at «6.i55.iiw to produce a 

August 9. an M>propriately surplus of £5,61I,53 d. 

Land Securities 

increased final will be recom- 
mended, the directors say. 

The accounting policy relating 
to ED19 gives rise to a tax charge 
In flhe accounts of £374.107 and 
the application of this policy 
requires a restatement of the tax 
charge in 1977 from £243.574 to a 
credit of £8.070, 

As a result earnings per share 
for 1977 have been Increased from 
4.77 p as publi<0ied in tbe 1977 
accounts to 695p Earnings per _ 
share in 1977-78 are 6.19p. 

1*77-7* 1*75-77 

t t 

The directors have again re- 
viewed the group's investment in 
City House Copenhagen. Although 
the rental income has increased 
during the year, because of ex- 
change rate fluctuations and locpl 
property conditions, it bas been 
decided to cany the Investment 
at the same value as in 1976 and 
a provision of £619,735 bas been 

Meeting, Sherlock Holmes Hotel, 
W. July 18 af IIJSQ am- 

iequiroments of Oin-Cduncfl qf TheStockBxchUngo* 


. BQiROUCiHflFSEFr^ , 

J-X - Placing of £3,000, OOpf 'T' V .. ■, 

Variable Rate Redeetnabte StodCj 1^3 

atSS| percent . . ..' . 

AppJicaiion fi 
Exchange for 

been ynade to the Cotfrarfr of The Sfoefc 
e above. Stock to be admitted to the 

X A,. ’ ■- ? v ; 1 

■■ » - * /» i - ‘ -'i' '•* i .' . 

In accordance vnt&tfie requirements of the Council of The 
Stock Exchange £300,000 ofthe^ Stock fu^avanable ht the 
market on the date of ftabllcatibivoftiifs Adyertisement and ^ it-, r,$ 
until 10 a.m. onWedm^day, 28thJUne,19!re. ’* ; ; :r', 

Particulars of the. Stockt|4va been ^circulated rh the ESttefi? '~" Ji 


Statistical Services Ltd^^aniL copies may j>e obtained '•wc^rn 
during usual business houral onany weekday -([Saturdays 3 ] a V ■ " ’ 

. excepted) for 14 day5 r fronyhnd tncludmgJ27thJunei 1976, 

•from ; •• '...•-r,.'; 

Phmlps 4 Drew, 1 . - S 5j,,,: -s 

Lee House, London Wall, London ECZY" BAP 

• and The Stock Exchange ... 0 

Summary of Results for the Year to 31 st March 1 978 

Total Income 

31 .3.78 

31 .3.77 
€ 000 

Income from all properties before taxation 





I Turnover nsttj 

Tradinn profll 1.4WAB 

Cnellm cards, etc. Z.437.C7 
U»s prop, dovcll. ... 4.870 

I fnvcsimom income... 37.131 

Exjunscs W.9T7 

Inlvresl changes 2S3XS8 

Prpft before tax US6.94S 


Esnoordinary credit... 

Mi nbut able 

To capital reserve 

IniinJn dividend 

Final dividend 


t Credit. 








OB. 434 





Transfer from Capital Reserve (Note 1) 
Income available for distribution 






Ordinary dividends (Note 2) 



sees first 

Earnings per share fully diluted 

a) On income from investment properties 

b) On income available for distribution (Note 1) 

half jump 

6.31 p 

6.71 p 
6.71 p 


1 No transfer from capital reserve in respect of the outgoings of development properties has been 
made this year. 

2 A final di vidend of 3. 809 52 p per share is recommended making a total for the year Qf 5. 30952p 
per Share Which compares with 4.804p per share for 1977. The total dividend is the maximum 
permissible and is covered 1.24 times. 

The aggregate value of Group properties was E826. 620.000. which comprised investment 
properties valued on an open market basis as at 31 st Marr.h 1 977 with additions thereto and 
development properties at cost less provisions. 

The consolidated net assets amounted to £ 476.574.000 ; without adjustment for taxation arising if 
properties were to be sold the fully diluted net asset value per share is 225p. 

Messrs. Knight Franks Rutley valued on an open market basis a fully representative sample of iK- 
investment properties at 31 st March 1 978. They reported that the values showed an uplifl of 21 . &■ n 
compared with the corresponding 1 977 values, but commented that subsequent to 31 si March 1 973 
yields on which properties are sold have eased. 

Mr. Stephen Rubin, the chair- 
man of Pentland Industries, 
told the annual meeting that 
turnover and profits for the first 
quarter of 1978 showed a marked 
improvement and anticipates that 
the half-yearly statement will 
show a significant advance 
despite the development costs of 
new ventures. 

PentJand's principal subsidiaries 
I engage in marketing, importing 
and exporting ail types or 

Adda looks 
to further 
profit growth 

The recent programme of sales is now concluded. 

The net income for the current year after charging the outgoings of development properties should 
permit an increase of 1 0% in the rate of ordinary dividend. * 

Copies of the Report and Accounts are available on request to: 


Devonshire House, Piccadilly, London W1X 6BT 

Following the £L3m turn round 
to a profit of £966,000 in IS77 Hr. 
D. D. Garcia, chairman of Adda 
International says that tic antici- 
pates further growth in hotel 
profits both Id UK and overseas m 
the current year. 

Last ^oonth Mr. H. 7. Edwards 
and associates acquired &25m 
shares in the group from the 
chairman and the executors of the 
estate of Mr. A. A. Garcia. Follow, 
ihg completion of this deal Mr. 
Garcia will resign as chairman 
and managing director and will be 
succeeded by Mr. Edwards who 
will become chairman and chief 
executive. Mr. M. Thompson will 
join the Board as managing 

Commenting on the results the 
Chairman explains that pro in- 
ability of the continuing London 
hotels again increased substan- 
tially in 1977 with trading profits 
more than doubling on a sales 
gain of 35 per cenL The pattern 
of growth in safes and trading 
profit has continued in the first 20 


Points from the Annual Statement for the year to 25th. March 1978 
by the Chairman Mr, &D.Davey 3 F*C A* 

The. Accounts and Charges ; 

Water charges not increased in 1977/7SxesuTted in ’ 
a deficit for that year of £194,000. Consequently for 
1978/79 water rate increased by* 18.2 % to Pip in' the 
£ and meter charge by 21.9% .to 72.3p per thousand 

gallons, even so, the water supply charge "for 

a house with a net annual value 6f £300 is only '/ 
around 7'3p per day* 

Capital Expenditure 
Kenley Works reorganisation approaching 
completion. New service reservoir near Caterharo. 
about to be started, estimated cost £500,000, • 

Significant increase inexpendxture _on the replacement 
of underground inains in. future years. 

Equalisation of Water Charges 
Domestic consumers will receive a benefitof 
approximately £1 per household in 1978/79, hiit this 
measure reduces financial accountability of individual 
authorities and companies." 

General Services Charge 
Collection of this charge on behalf of the Thames • 
and Southern Water Authorities has commenced. 
Consumer now able to ascertain the full cpst ofhis . - 
water supply and disposal service. ' 

Threat is postponed not removed. 


ini,?* r ^'° 

? r? a ' 3 J* 

:A J XXr : wc 









■1, *7 

w- r >- 

a br5'i ,1Jr bf 

‘London Road, 

RedhiU, Surrey. TZHt ILK 



v ‘£ J«u. 



’• ‘ t-l • 

Financial Times Tuesday June 27 1978 I 

to letting vacant 


board meetings 



1SB5 IMMEDIATE priority of 
Land Securities Investment Trust 
• is to let the vacant space in its 
' — investment and development pro- _ 

pertl&s. Lord Samuel, the chair- aJI? 5 u * rl, “ companies bav^ notiftcd 

Wth Reco un ts. held lor Ihf punKises of canldeTijuz 

.* ■ lit the March 31, 1978, year the (Uv, *> n 'J*- Official indications not 

erohp substantially reduced the avaUabl * ■*«*«■ dividends 

m>let space, with the 

stfirasted .arniual rental value of « tan yews umeubie 
nid«t. properties cut from £11 ,2m today ' 

iS3ai. . Ijfsrt wc— y bdi»> : invesmteA Trust 

BAT industries. SCB. 

. - -Of-' the TOtari £5. 82m relates to , caira ■ Dundee >. Equity Consort 

properties completed -at balance ™ v «»®«ni Trust. Haims, impastai Con- 

■■■■: ■ hos s propemes TE3*“ffliS 

-. completed m the year and chartered Bank. TtahniL ■* 

. me-; remainder to those due for future dates 

coiflpteraon after March 31. 1079 . .' n '® rl ‘r* — 

-Lord Samuel D trims mil Ih.i Al*t«*d Textile _~/uly 28 

• ' - ~ “l™ 5 «**l Euroiterm international June JS 

- •- after- making adjustment for the fimu- 1 

•' rental value of voids in properties 'Ceonjci „ _rjulj 4 

so& *n new revitalisations and M ’" dr JoJt 5 

in “developments begun in the SKE**, Qm ‘““ - J 
•• i jfe® r total rental value of the Matwffrid sreurry ' " ** t.i» 3 

. .uiuet properties was * 1rywr ■ Montague l.> . July if 

Adduced by some £5ra. f? 3 *f Ca n>m . . . July a 

* .'There are signs that Uismcir 5 hot * invest™™ ~.Jairu 

y5jl;be stepping up its develop- 
-- ' ment programme, which has been 

' ^ ■ severely curtailed since 1974. P ernes have fallen, leading to 

■■ h ",S:T ttt— ><■ MLEtMiaH 

IT S F“" « « 

«2?woubf h 1 nn t » f ^? eeiI ■?*? COfTl P an y may wM Wish to con- 
h^says. 1,1 be 00 a laf Be scale, sider recommencing the practice 

With the curtailment 

he says. 

development, ou^s on p* T2*S?E5l 

Readicut plans to spend 
over £20 m by 1983 


1 rji 

- OVER £20m of capital expenditure The remaining companies In 
is- planned by Readicut lnteT- this division will do better, he 
i^ionai by 1083, with £5.9m being adds, in the current year for 

- envisaged for the current year, they start with better order books 

sws Mr. P. J.- F. Croset, qhairman, and they are producing, “articles 
ixti-his annual statement, with the which inculcate a higher teefino- 
majpr spending in the manufac- logy either in their production or 
turing division (textiles) and their finishing, both of which 
“spiers." And the group is ciake it more difficult for com 
planning for higher sales and petition to follow." 
profits in the 1978-79 year. Prospects are brighter in the 

-;A8 reported on May 18. with yarns division, as . margins cpn- 
tarqover up from £67 .72m to tinue to improve and the benefit 
-£?&38m pre-lax profit of the of research on new man ufacturiog 
igoup for the March 31, 1978. methods come into use for yam 
■year advanced from £7 22m to production; he says there'-' is 
£7 JS9m and the. dividend is in- ever)' indication that the current 
. crease, to-. 1.59603p il.42p) per year may be better both for sales 
share. Exports rose by 23 per and profit, 
cent to £21.77hi. At Dunlicraft in the "others 

On a CCA basis pre-tax profit sector, further growth is seen, 
"is - - adjusted to £4-81m after with increasing opportunitleSrfor 
depreciation adjustment £1.63m, exporting. The remaining corn- 
eoit of sales £ 1.38m and the gear- panics in this division ail antici- 
ing- factor £0-24m. pate improving their contributions 

In the retail division Mr. Crosel during the year ahead,"* -Mr. 

' says . prospects for the current Croset states. 
yiar. with lower inflation and Prospects in manufacturing 
larger disposable incomes, are division (carpels) look More 
much healthier and an improve- encouraging, he adds. Sales to 
mint in both sales and profits is the ll.S. should benefit front~the 
apnHpated. strengthening of the U.S. dollar 

iFirth Furnishings in the but Australia will remain an ex- 
manufacturing division (textiles) posure. 
h$s the necessary capacity avail- Present indications for the 
aple to meet the rising output group's overseas activities are 
levels predicted for the auto- that performance will improve, 
•Motive industry- at home, and but profits may not reach the 
iroad, he say^'aad the - present’ record level -achieved in 1976-7T. 
pularity of its product ranee Meeting. Great .Eastern Hotel, 
all sectors augurs well for the EC. July 20. at 12-30 pm.. 

jure. .Statement Page 30 

S • 

Extracts from Chairman’s Review 
"J .2- It is gratifying to report slightly Increased profits of 

£1,303,302 in another difficult period for the house- 
building industry. 

* Demand for new homes has significantly 
accelerated and increased margins are now being 

* The land bank continues to be in excess of 6,000 
plots, sufficient for four years at current production 

* An increase of 20% in the final dividend is 

Year to 31 March 











Turnover ^MSi 

i Profit before taxation 

Profit after taxation 

Earnings per share 

. Dividends per share 2v2g 

Net assets per share 40 * pp .. 

Copies of the Report and Accounts are available from 
I ThoSecretary, Comben Group f-M-r .. -A 

NCSBERgg Par * Row - Bristo! 831 



^-mco rvo™** ti tneEe^Uc 

i - . n aniline nrogramme In^lbe_^ ci 

. exploratory rroxing t0 

- In respect of the drilling' P r0 ®^25J,ai the resulT'of the 
raa "ap'd south wes $ ^^IflSSon) of borehole SJJJP- J 1 

drt deflection (a intersections, previouslj 

laounced. The results of i information- . 

ibiished, are repeated ™ claim area on the fa <u 
1 is sltuaim o -mn metn 

ire repeaieo — - . j.|aim area ou ^ —-r- 

JfpjSSStely 3 ^ “etrej we^r^g 

dllare'' short deflections are n 

rd defiection. _ , . Uranium 

i , ***.!**«- Con«i«> - Gold 

Metres ^J dth 

scale devekipmenl It would be a 
few years before- outgoings on any 
new programme rose to an 
appreciable level. 

Development properties are 
«hown in accounts at £52.54m 
enmparedwhh £75.7 m previously. 

LAND SIT faces a rcpn.vment of 
some £42m on tis U.S. dollar loan 
•n February and the chairman 
s 'iVs thal short-term funds are 
suffleient lo cover this, liabilities 
outstanding at March SI. and to 
fund the remaining capital ex- 
penditure on development proper- 
P p s. Capital spending is shown 
m the accounts at £Sm compared 
wiih £32. 9m previously. 

The recent sales programme to 
finance these liabilities is now con- 
cluded. At balance date the group 
had .shon-ierm deposits of £SSm 
against £63.02m. 

lYopeny sales last year totalled 
and four City properties 
were completed fully let. The 
major development adjacent lo 
F 1 unchurch Street Station has been 
completed and Ls now available 
tor letting. 

. As already reported available 
income for the year was £12. 85m 
(fi2.«6m) after outgoings of 
C on development properties. 

For the future directors are 
confident that in the absence of 
unforeseen circumstances income 
available for distribution for the 
current year after deducting the 
w*I outgoings of development 
properties will permit an increase 
of 19 per cent In the rate of 
ordinary dividends on shares now 
In issue and those which would be 
issued in the event of full con- 
version of existing 5Z per cent 
loan stock in September. 

Meeting, Piccadilly. W, July 18 
at noon. 

See Lex 

Statement Page 28 

Pope up 
at mid-term 

profits of £69.541 against £17,186 
previously. taxable profit of 
ElriridRC Pope and Co. rose from 
£329.085 in £355.122 in the March 
31. 1978. half year. 

Turnover of the maltster and 
wine and spirit merchant was 
£5. 77m. compared with £5.1 m. 

The inlerim dividend is up from 
2.75p nei per £1 share to 2>~!p. 
Last year on record pre-tax profits 
of £1.09m n 3-35p final was paid. 
The company has dose status. 

expected at 
Briinning Grp. 

Preliminary budgets a I 
Brunning Group indicate that it 
should continue to increase turn- 
over and prof! is in the current 
year. Mr. GcolTrcy Brunning. the 
chairman, says in his annual 

As previously reported pre- 
tax profit in the March 31, 1D7S 
year climbed from fO.fiSm to 
£0.81 m. 

Among subsidiaries. Circular 
Distributors has begun the year 
with forward order books healthy, 
white current indications are 
that the caravan operations will 
have a much belter trading 

With boar building. The com- 
pany has reached capacity with 
no room for expansion, hut a 
new factory in Non ha n is will he 
in production by next summer 
The printing side is expected to 
do heller while silvering capacity 
at Novoior (Glass Processing) has 
been increased 2J times. 

At balance date net current 
assets were £2.3?m (£2J22m) and 
fixed assets £ 1.58 m i£1.23ml. 

Meeting. 100 Whitechapel Road, 
E. July 21 at 12.15 pm. 




Uj Dawson International Limited 

(inCD/po.-37cd in Scuihnd) 

The Dawson Group is one of the worlds largcu manufacturers and processors of textile products 
based on animal hbres- wool, cashmere, camelhair. mohair; angora and alpaca- While best known for its 
luxury knitwear the Group also markets raw fibres, semi processed materials, yams and ladies fashion clothing. 

9 Record results- pre-tax profits up by 50%: earnings per share up by 56% 
V? B Exports in excess of £37 million 

I Balance Sheet strength further improved 

I Substantial dividend increase proposed as soon as legislation permits 
I Current order books satisfactory 





£ million 


£ million 



■ 67.26 

Profit before lax 



Profit aftributab!e to shareholders 




■ M 

Net assets employed 



Earnings per share 




Dividend per share 



s ;VW 


Copies or |K- * nniLiI Vr^vjrt c an-jirvn^ ; he siaiemeni to shareholders by the Chairman, Ml Alan 5m Cfl£, available 
iromThe Sn-iL-Lin. Lunvon lntr— rational Limited. tSnrou, KYI 3 7DH 

Triple fjalfanfyne 



t2 W 53 « ‘ {SES iStiiee* WQ33 

& New 2-piece can plant 
to open at Braunstone, 
Leics by the beginning of 

® Capital investment at 
Venesta International 
Packaging to increase 

^ Encouraging year from 
Security and General 
Printing Division. 

-^Equipment interests 
‘ •.>% \ consolidated in Metal Box 
.. a Engineering: a strong 

0 The interchange of 
technical and market 
knowledge between the 
Stelrad and Ideal 
businesses has yielded 
higher sales and profits. 

^ Higher sales and 
profits from Metal Box 

• Trading conditions in 
India more favourable - 
sales and profits up. . 

• Lamicon plastic bottles 
develop satisfactorily. 

>v@s forward 

Extracts from the Statement of Sir Alex Page Chairman, Metal Box Limited, 
taken from the Company’s Annual Reports and Accounts 1978: 

Review of the Year 

While overseas the past year, on the whole, 

- was satisfactory, at home it has been a difficult 
one, not only because of the unfavourable 
weather conditions for food and beverage cans, 
but also because of certain industrial unrest and 
these diffic ulties have resulted in lower profits. 
The technology of can making is undergoing a 
signifi can t change and we have made a 
substantial investment in two-piece can 

- manufacture , which has not yet earned any 
.'-return. This technological change has involved 

both changes in the nature of the work of 

- employees in some of our factories and in the 
degree of skills required. These changes have 
taken place against the background of the three 

■ Phases of the Government's wages policy, one 
result of which has been the drastic reduction of 
' differentials between rates for skilled and those 
-for unskilled work. The result has been 
r substantial industrial unrest in some factories 
with the consequence that our new equipment 
has not been properly utilised. Once again 
despite this industrial unrest, which mainly has 
been confined to one or two particular areas, the 
'vast majority of the Company’s employees have 
demonstrated their loyalty to the Company and 
conscientious devotion to their work. I should 
hke to thank them for their efforts in what, I know, 
have been difficult circumstances. 


■ Sales at home were 18 % higher than last year 
and overseas the increase was 7 % ; combined 
. sales were 14% higher. Including associated 
companies, the combined profit of £55.8 million 
was 4% less than for last year. 


Exports last year amounted to £59.3 million,- 
an increase of £15.8 million (36 %) compared 
with the previous year. 

" Continental Group Agreement 

One of the most significant steps has been the 
renegotiation of our Technical Agreement with 
The Continental Group Inc. of the US. We are 
' thus free to pursue a separate course for the 
development and exploitation of can making and 
crown cap making technologies. I wish to express 



















Profit before taxation 


-9 0 







Associated Companies 











Profit after taxation 




Interest of minority 





Profit before extraordinary 




35,789 . 

Extraordinary items 



Interest of Metal Box Limited 

— 13-Z 




On preference stocks 



Interim ordinary dividend 

of 6-6p 



Final ordinary dividend of 

8-2662p - proposed, 






Profit retained in the business 


Metal Box Limited 





Associated Companies 



Earnincs per £1 ordinary 

-20 -2 



stock unit 



our gratitude to Continental for all the help which 
Metal Box has received from them over nearly 
half a century. 


Metal Box -Standun Inc. • d 

Our first major project following the ■ 

termination of the Continental Can agreement 
has been the formation jointly with Standun Ihc. of 8 
Compton, Los Angeles, of a company to j| 

manufacture two-piece beverage cans at a ^ 

factory to be built in the Los Angeles area. The £ 
new corporation has signed a contract to supply B 
Pep si- Cola Bottling Group with beverage cans. 


It is gratifying to'repori that the Industry 
Co mm ittee for Packaging and the Environment 
(IN OPEN) has with Government backing achieved 
its objective of a Voluntary Code of Practice for 
the Packaging Industry and the Packaging Council 
with responsibility for monitoring it. With our full 
support INCPEN has also joined with sister • 
organisations in other EEC countries who share 
our concern about the prejudice being shown 
against packaging by the Environment and 
Consumer Protection Service of the EEC. 


The Overseas Company, despite political 
problems in a number of territories, has had a 
reasonably good year; in particular, the glass 
plant in Nigeria is well established and is making 
good profits. 


The prospects for the economy do not 
appear to favour any substantial general 
increase in sales this year. There are 
opportunities for increasing efficiency and 
profits,- if we can overcome the industrial 
relations problems which affected us last 
year. I believe that there are signs that this is 
happening but until we can give incentives 
for greater effort skill and responsibility, . 
which is difficult under the pay policy, 
problems are bound to arise. 

Meta! Box 

A good business to be in 


To : The. Secretariat, Metal Box Limited, Queens 
House, -Forbuiry Road,' Reading, RG1 3JH. 

Please send me a. copy of the Reports and 

Accounts 1978s 







Lord Budilin Qf g^nd birthday, the 

of the wise judgment. eWtUnt inmiirin? 

of the wise j udgm e e ^ encTgetic and inspiring 

the loog period of his service lo the company. 

Res ®5 s _ . , rM'nrded in this year’s report and 

ni«JSbtedIv^go*d. The Company’s large 

salutary to noto tha tbc Cumpa ^ Qf n 554>0W) 

s-L on a historical Mb. 

New Eqoipment for Porbm^ ^ lfae 

ilaua^emcnl ha? bl , W ubt modem com posing 
production unioiu Jo J * (£,:. d ji The News CentT-;. 
techniques available to u ’ ® menl bas been installed 
Purtuuou b. - S soon. The Board 

and it St on limum tw? shall be made of 

remains benefit of shareholders, employee?, 

l bis machinery for ”. er . in order tc- fccurc 

ss^ 10 drfer lue 

fuil and proper use of the equipment 
New Technology in the provincial press 
N %hci has been loo Hill* 

leaders and members of Ihe Ne v. ^ P of lhe newest 

S-^sh U 01 Ld KteSlyftyW lo erirlral* themselves. 
DeV lt P Th e e nt Mai?* HafS!po ul . a programme rojgg 

SSiSErir tfS ^ W«? 

so°that the profit from this oflice may bo increased. 

‘’“V/auTtoy ?S7d“=“ , ”fbat 0» Company, tantof- 
ment in Sunderland, where wch-offset fuU colour grlnj "S 

had unless all involved aro now willing to concentrate on 

a P n^Ss« JSff b P ar bS S ^i S ned h 

methods and give employees the maximum tromtorl and 

S& tfe 

ftSm th? pnXlion imicns the necessaiy agreement 

wherebv annhins tike “the finest paper possible n ay be 
orfs produced. Nol only doe. Ibis deny. to the public nc 
. . i ndi.icivnur for the production oi which to- 

to that 
now so 

^at journalists from this office hare ™ ttemr* oi 
“Provincial Journalist of the year ior the second to»e 
in the last three years. Obtaining an agreement tor prop, r 
productivity and the full use of corour faeibtie* n. no« 
extremely urgent. 

News Shops . , . 

1 am delighted to report that the optimism u Rich t 
evuressed last year for this year s profit from New's Shops 
-v'fs well founded. A useful contribution has been mad. 
bv ‘this subsidiary’ and i hope that the rMm J*L®u/^. s is i t 
owns will increase so that profitability may continue to iim- 

Local Radio Investment 

Two uf the radio stations in which the Company has an 
interest— Metro Radio (Tyne and Ttear/ unJ J.adm T^ 
(Teesside) have begun to produce small profits, and the 
uJinL Radio VictoT-y (Portsmouth) is moving towards 
profitability. I hope, therefore, the Company will soon 
receive some return on its investments. 

Developments in management „ no 

Tb«=* Company is strengthening its Board and. mana^e- 
ment bv r^riiiting a specialist iu industrial relations «nd 

S,tlS hw recently b.en Mid Id tbU subjea 

"eneraMv. A ruanagement development prograoui.e 
including concentration on training has bean started. The 
Board has established local management committee 5 and 
delegated to them greater authority than Jt^bfcrio bc^n 
conferred locally. Management consultants and th*. 
Industrial Society have helped to advise on many aspect* 
of these subjects. 

Circulation Growth 

The Company is increasingly using marvel research in 
order to improve its sale of newspapers atd ad.eniMng 
space. Such research, for example., has fchuwn that reauirs 
of the Sunderiand. have a higher de.B'.c n. Iru l .n 
its advertisements than in those of any other rnais c tl- 
m unication. Inevitably there have been mcrea»t> ,\t the 
prices of almost all the Company s newspapers aJid in 
advertising rates; these have been accompanies by liiav> 
proniolion campaigns which, together with an mtproyeuien, 
fn th .• content and the design of most of the newspaper*, 
has resulted in buoyant circulation. A major aim now .s 
to regain our previous level of household Cl ^ 
is to say the proportion of households in earn t»-:Ujt.un 
area taking the Company’s evening newspapers. Actaerin^ 
this target would mean that with the jwpulsuon growth in 
our three areas, a significant increase m circulation wojld 
he achieved. 

Advertising Volume Continued Increase 

The volume uf advertising in each of the Company s 
evening newspapers continues to rise; 1 mu more Lonfiueriw 
that advertisers are willing to pay eras need rates for 
provincial newspaper space than that, readers are prep-ied 
to nsiv Frequentiv rising cover prices. Ejce ai th. evt-nin 0 
newspapers is now selling for slightly lev than many others 
in Lhe country: advertising rates have heec increased h -> * 
much a. was thought reasonable. Of. course, optimum u*e 
of modern technology would help stabilize both cover prices 
and advertising rates. 


A Dari from the exceptions already mentioned, nil the 

Centre has been particularly good and I believe that im 
content and colourful production of the conips. ny s nc £*■ 
r. a ,ipr< there is now probably a* good as anywhere m ine 

• ... V'* ’ t 

S* , r .fc'*-T..'*re 



A mine under a mine 
for De Beers 



THE ANTICIPATED go-ahead for tirtil shareholders 
u major new diamond mine for yc-terday. 

Svdnev and whose ore gr 

cxuecled to decline. 

■.hI b-.’ Otlicr swkdiefS in the 
L. ,h’ n folio were tU“ sale 

31 npie exceptional growth 



ue Beer, near Pretoria comet Ik- quoted an ap?™*** «-• Ml0 werc tIl - s alc 
with '.he news that the necessary b. L. llodge and Partners, tfic m Consolidated 

neuotiaLions luve been eutnpletcd London ..'Miisuiiants. wtmn sam ir.,ubled antimuiis 

Aoo I0p *5: , ?SaL52 

of the Premier mine which 
started production in 1»03. Apart 
from beinp a major producer of 
industrial diamonds. Premier ha?, 
rielded famous gem diamonds 

ton-no of product itUi/jr. (ft" 

Southland ha* hc-n in'cn-*ied L ‘ud of tho 
in Hiniii-tano since ■■■71. Various m •> 

oiber gruup-, had hiofccd - l m Aiy 41,51111 
rhf nr*‘vifiiis \ m w* nad 

Slid! LI lUliw.—'- — ii|rt „ r U 

,\SA‘s net ws*rtb were vvorih 
KlU.tlfi per share af me 

ud" of tho' \lay quarter against 
[ik-jsi ni i ho end of the 1 ebru- 

such a, the hu-;c Cullman of [lu- previous i!t» yos- ■ w. »™ 

il.lflt? cerats in lhe rough rtJtie: l«*l interest becauie '.‘i 

the Niarchos: the Transvaal Blue a^ocnt’.ed with the j.tvI^uuoh 

Advertising remained esxremely _ 
buoyant end aggreRite revmm*-. 

and the Taylor-Burion. of the ore. Southland n:^ success- 

Ironically. as Sir. Harry fully compk-ied p:lnl plan! !«?-• 
tippenheimer was at sonic pains inx 

to point out in the IliTii annual Sou lit land share* e up np 3,1 
repori of De Beers. Premier lias ^ vtsierdav. 
not naid a dividend on ils deli-rmi 
Jure.- for over •>»> yen r- and lhe 

ASA builds U p 

being side lo mine economically 

the new deeper area have thus 170^0 eloL'n 
been oniirely dependent on mure JlL« 1\ v/ ol rt JVV. 
lenient ax and lea.w arrangements lWl(WlV i as i Rand 

which have now been obtained. At n..\*JTi ION oi - • . 

, . . . Iluld and Iramum ii-.MiMi 

Limited output is planned for ^ s ; nveslorjli i las heco einpha- 
ihe first quai ter of next year .roii: bv the di-.-l..-.urc. h> its 

£SSS!« S.iSl. .r^n.K 

ss ,on 'r es .r,°'’ Fa £ 5 s™ s v B «ff a«h»» 

:;i«p ye-iterday. 

^ ^ Winter ts the low revenue -uran ^Austfatt*^ .’.A69t7.’.:*PfiR 

rlMrlond ioll: ocriod for the leisure •«Sivis»>a*: 0 vvnfid by 

cil V IC1611Q ittilv Windsor Safari. Park was dote^ were up • 

while a major tmprovemeor pn»r- AS75.44m 
MU PAUL PENXA. president ol sraiunie was Implemented. - ■' ''^11.6' per cent- 
Aguico-Eagle Mines The scenery ronstrucUon. cortfc; 'interest, 

showed an increase or 27R per . For mmRbs^^Aprilv¥ffi|S^ 

cent on the first half of WT7. l978 s al^s pf 

RUfeg 3 b £ imaL 

\^ere^.dowu . vitu'. ’ -■ 

gwfe&srasfV 1- 

ASA builds up 
ERGO stake 

i -nudjN Aguico-Eagle Mmeb The scenery construcuon cqnk U n. e res.t, u^r^aaiip.u 

..“rtia-ns confident ad ever pany. Walts and Corey, has coru ’{merest and 

idniitr the future of the com- tinurd to expand and .. 

oaliy’? “w and silver operations, based ^bsidxary has been assays 

meeting; \VRen are v ou ftOiJW t ^ Australia, trading continues Vnent poli cy : directed j 
paj a chviden-I.'. be rephed. lo m be A 5ffiSlt and imrewanfins^ST iSe .of^yinfiatk 
Don t be surprised dwe make f 0r everyone in television .rentaf; Australian i ecipwray*^ 

THE ATTRACTION vf R and -Don't be ^urpnrecl if vc make JJr.^^yone 
Gold and Vranium i i.Hti'. 1 1 i° statemeni before this year is gnr ] r h e jjrec 
V.S. in vcM ur* lias been einpha- reports John Sogaitich- solution lies 

si>ed by the dU'l-stire. hi 'W Vnw free of deJ>i and enjoy mg the industry. 

fej^.rl. '-f a P«r „ onefiL> of brjUer gold prices They are t 
chase of l-i . .000 share- «- ASA * n ,- t u.. ^11 i u the dwcustions v 

lies some UJOni tonne? of v .n. u ‘ 

kimberlite which ?huuld be ready numitg stoiki Jvupl-is 

for mining fix’ 10S7. FltGO was established by Anglo , 

Production at the LI area American Corporation lo 
-hould rise from 900.UIIII tonnes a a ..-fu mu’ a ted mine vn*lcs 
year in 1981 (0 Int tonnes i:i 18SJ e^iract gold. uranium 

:,nd a maximum 1.2m Jonn^s in j-jipimric acid. 

Ift.S’.T. Premiers existing mining AS.Vs quarterly rep‘>rt for the 
area still contains some 4»m pcriul j ro en ’ji u f May shows 
tonne* and last year the mine tlial it has acquired a total ERGO 
treated 7.07m tonnes at a j^adc huM j n<r y f 24S.20U shares, worth 
of 2S.42 carat- per 110 tonnes. a , ye.-lordr.ys elo.sino 

Tlic- resultant diamond output pr-k-e of :SU7p. Lt he. an purchas- 
nf 2 . 0 tm carats compared with i he L*r? shares -in the preceding 
total recovery of ail De Beers’ q j-jricr. 

di:<mund operations of ll.SIni switches in the .V»A portfolio, 
carats. It Irt reckoned that lhe ^jeli liad a net as>ci value of 
opening up of the new are;i below i£ll» 1 . 5 m> ai the end of 

the gabbro sill wiil extend the Kay RjAm more than lhrce 
life of the overi.II o penmen at mo , u | 1:i previoujiy. act as a baro- 
Premicr tn at least tlic enu oi nieler t ,r l : .S. investment interest 
this century. i n ^ ou ih Africa. 

In ; hi- i-'innecTiun. ASA has 

FLUORSPAR IVllINJE ■.-ontimicd iu build up us stake 

in gold mum? ••• tin a significant 

FOR SOUTHLAND uraiiium po-.t-ntial. Thus a r ur- 

rufl WWinLAiu/ Uwr shares in Hartebcest- 

Southiand Mining hope? to *iart fmiteln have been boutfht. but 
mining at rta Pianciario Huor-.jur iau.Wfk* s:i.ire» have been »o!d 
deposit near Borne in IttSO. Mr. from :ti- slake in Bly\ ouruiUicht. 
Maurice Meseara. the chairman, whase life is known lo be limited 

tonne* at a grade h(jM j n? u f 24S.2WI »lures. worth 

, , , . h „ expects to make an operating "Z1‘ 

L«r m '-i' in ireit P ro, ‘* of C$2.3m C£I.2m) in the Tder‘a<«2 arsTacdM: 
>oratiun - * j dr-' hair ’of tihis wear and “fiould Ausiraia. —.TV rental 

and do betler in the second half. ofi* Jft* “ I 

The Jo (i tel gold property in Taa 

rly report for the (lu-'fiec i? getting into the higher ^‘ 0 *5a£ 

i Minor! U«s 

2.171. J^53a. 
1* j^*. 


- fS9J37BJ . “ taehutinKy -loan ,-stpc; . .— 
i:Vr-'*rt0rert'df , £72^62 (K0.069L an 

Lobjil Camp where liie rcceiw the back of an adrerpsuig bo^B. pared with fft.02m. • - •\r‘* * - -ai ! 

•Jewelry bos” intersection was- Stripping out Austraban firtesste ^ After tax of £52^38.’ <£163*!«.>:v 

J r # n nnrf Mnar nMnn t HP nPTIFP tK - . . _ .. ».• •» • • fd • 

fHPfits oE £573^38. 

.h--' rMnneciiuB. ASA ta. iSSIt. “f.JJSl {TJ S5SL°WS 

, , X . mV 1 4 fc X G 0 wguDtl -1 disiric: of northern 10 a close, figures tor Apm ana 3 ^ 
..onumjed u> up n-* *iakc - . .. ... - u .. ke a s |j 0l May show advertising revemietifi -., 

m gult mi:m? •• u jijjiu. icant • Pemva adding that the television sector incrfiased'by 

uranium potential. Thus a fur- a. 'L said Mr. Penmi. aaaiTit, max v ^ 9 A w- 

>n!d finaUy be comiHg al ootp '(14J)6 p>- and'jjje At 

Figures for April and § tv id end is up from £76p to.L»7p • 

Hv«rtf«me revenue rn . - ■: . • _ - . 

whose life is known lo be limited Cj>'fU2 in Toronto. 

only 10.8 peT cent and 9.1 ^aar. 
cent respectively, though Trident; 
says the - picture looks a -fin 
brighter for the rest of . they 
summer. Costs are rising, .out 
no rent card rises are planned-:^ 
the - moment and the discount 
season (historically, in Trldenrs 

better placed 

•' Second-half .’ earnings at Cnm r ..’. 

-adns Kiigine-Cbaipafiy : coBapsei^ 
-4 Iroia 35 i.l 4 ui.. to' fl)fi3ia leavmr 
.-7 jare-tai' profit for, JOT? down fron 
- fS.3m to 5.I4nu . 

.. Turn over for the year \va 
I to® fi.OAn -to £87>31iti sni 


SS,* 6 ! 0 ," 1 iffflf St S^ZSBiS^-vSSi ^^ .; compan: 


Sun Oil acquires 50 per cent 
of Fort Kent project 

'“- r ' 

. _ ".T-rt ■ — ■■ i -• v ' y -;«• 

z i: ?%■,.■ 

_it the 

Aw. Ma.*3i'*: 

sot? f-'OI 

|Thp L’i’s Worldwide Enorgv Energy’s fort Kent project has Germany and PanC3nadian or 
Corporation «3ya that its Canadian SKim barrels of ex^roitable oil in Canada. S3i{ , 

u-r.ri,i« iHo KiiPi-w n'-ji-o Tins en-'inccrine study in- The Greenland omctais said 

!>eIo.pmem of its Fort i 
I e’.l project located in 

the Cold 1U.000 b;.rrelj per day 

Lake area of north-eastern 
Alberta. Texaco Canada >:iys that tests 

Under the Terms of the loiter flf fts p cni bi„ a in.-jo well in West 
asreement, Sun Usl is acquiring :• p,. ni i > j n; . Alberi i. indicated 
30 per cent interest in lhe 4.:e»» CtlimiK . rola | production frotn the 
acre heavy oil project, ^u^ Uil wi,» v, wkll f rtimat j (lll . 
pay 70 per cent of cajiilsd costs on The t .. N | s - V C re nude below the 

8.1m barrels or oi! several others among lhe 21 con- 
, vc red over a 20-year cession holders are also expected 
siKtained rate of t*i abandon further exploration 
, per day. because of the failures from 

*■ * drilling so far. 

nada vtys that tests *• * * 

i a H-20 well in TV cat Hudsons Bay. OU and Gas and 

Alberi'i. mutcaicd |) 0nie i-etruleum. top bidders in 
production irom the ,|, e Alncrtn Government week 
i krtl *^1 -fie in Calgary- paid t32m. 
• ere made below the flp s4 0lW ;in acru ( nr | W0 secuons. 


■■ \ - Ji 




the phase one expansion currenily fl fuill k . vc l. Tetiin-j continues i an d Ranw 12. in the 

under way and esthualed lo coai IO asKe? i, ihe rc-vL-rvuir. vv’esl Pembina area. The acreage 

— •• -jrjtrtClA .; ::: _ •: . r . £ j ’ ’ 

|C^ West Pembina, near Edmonton. . ' m 'r incont to land where a gas 

They wtli a iso pay jU per cent hllJ . e-l-aii'H-tl to contain ^( qVl ’ lUt necured at .Amoco- 

of lhe estimated capital vovs vf 2 i, n ham-G «f nil. on Hie basis Pril . illr p e t ro leam’s well last 

CAo.Om. for the phase two expan- p( . ojl con „.«nii-’ r 
sion planned ior next year At fHr 3nd j s ; p c !nu 
Sun Oil's eieclion, they could pro- p -,j (fi^overv area 
ceed with pha.« ihree. currently Canada in a decade. 

2bn barrels uf nil. on lhe buMs p ac j |lc petroleum’s well last 
of oil com punk*-' exploration so D,. ccrn h,. r . Dome iuul Hudsons 
far. and is the must imijortant g aJ . a j S( , $4,004 an acre for 

nil discovery arcs in Western anolher j n the same area. 

planned to commence in 1SS1. and ^ *. 

Sun Oil vvill pay 33 per cent of 

the Crst CS137ni of capital cosrs Oil companies txolo 
for the phase tiiree expansion and west coan m 
development apparently -uc V 1 '-' 1 ! 

The agreement provides iha: uis:ip|souiun_ itiulH. 
worldwide shall operate through According to a n 

Uil companies exploring off the **“R U'. 1 Canada \ ill Test a 
Est coast of Greenland -W.OOrt oarrek shipmen of 

•parent ly -uc y'«ns up nfli;r •'« v :K ‘ a11 c |'" de "'J.® 1 J**^ 1 ““Sj 
viuaoiuune rv-ults. reimery l3le this month, for 

According U' report frutn evaluation ks a supplementary 
i pen h Die ii. Greenland officials soiree of supply. p& . 

uie u noted ;- -av mg that one Gulf is the largest Petro 
.nsortium In. - rouped drilling rhcmtcaJ producer 
id viili relin . •,!-!, its concC'Sion area. It is the fii-st t me llexican 
lhe end uf ;hi- year. Standanl '-rude will have • been 
:1 jlndnnal i- ihe operator of tf» Cmada. »l.* ,n _ ijjf 

- Mhnr ua riifM- \ wnc/Lielu. the nud-East anu 


Profit before taxation 

Earnings per share 
Dividends per share 

Year to 31st 
March 1978 
, £000 • 

76^380 ; ' ; 

_J 7^86:. 







vfii •?.: -•. 

| "j.-y 

I sftsir'V 

h * 'i'i'l am! 

t:.- . 

T . . ‘ ’ 



William Pickles 

Copies ofthe Repuii and .•Accounts can be obtained from the Secretary. 
Iteadicul Internatimuil Limited. Horbuiy. Wakefield WF4 6HD. 

Readicut Internatk>nal Limited 

* iw.ints 

Tff- a- c 

newspaper prmuu 0 •»““ 
v. in *»y ibis office. 

September. Mr. A. D. W. Hoskyni-Abraii.i l left the 
Board and 1 thank him for the service he gave to the 
Company and wish him well in the new work be has 


Edited by Deny* SuKon 

The world’s 
leading magazine of 
Arts and Antiques 

Published Monthly price £2.00 
Overseas Subscription £28.00 

Annual Subscription £25.00 t inland » 
USA 8 Cantdi Air Assisted SSb 

Apollo .Vnjaaine Bracken tfeu-e. t0 Cwnw Si.-eer 
Lendbn EC 4“ 46T r « ; - 51-245 5Cx» 

The Annuel Genet a! Meeting of the 
Company ivss held in Marche 5tei 
yesterday. The following etc e •'tracts from 
the statement by the Chamnir. 

Mr. C. Harold Buckley, suhtmiiar to the 


■ 1 977 must rate as a diseppointmg v®sr for 

your Company, particularly alter the 

encouraging results given in our interim 
statement. The figures for the year to -il si 
December. 1 977 show turnover at 
€22.925.490 against €21 .21 S.089 in the 
previous year, and Group profit b<?iore 
taxation fell by €59.056 lo f 81 7.082 Yon- 
Directors decided. in view of these figuie*. lo 
recommend the same final dividend. 

0.396p per share, as paid in 1977. 

The downturn in sales m live last quarrei oi 
1 977 had an adverse affect on Group profits 
in view of the fact that n large percentage of 
vour Companv's turnover is monufactuied 
in Britain, and our margins were constantly 
underpressure due to the intense 
competition from low cost miuorts 
manufactured in lhe Far East and 
elsewhere. / fTAl 

The policv of rationalisation i 

commenced in 1976 is still being 

vigorously pursued, and I believe the benefits 
v.-ill become apparent when there is any 
real upturn in the British economy. 

I would be less than honest, if t intimated 
that 1 978 had opened up well. The retail 
trade, by and large, is not buoyant and the 
April Budget has done singularly little to 
give our economy the shot in the arm it sc 
badly needs. 1 am, however, very optimistic 
and confident about the future of your 
G roup. It is soundly based and the 
Subsidiary Companies are well diversified in 
garments lor men. women and children, 
household textiles, soft furnishing fabrics, 
sportswear, upholstery fabrics and neckties. 

The trade names, including Banner. 
Sparva and Uwm. enjoy a high reputation on 
the High Streets of Britain, and in many 
overseas markets. Changes have been 
effected in the Senior Management of 
certain Companies, and these changes 
augur well tor the future. 

Group Companies: 

SSS^WHenrV Bannerman (Holdings) Ltd. 

G Wm. Chapman Ltd.: Glen Fabrics Ltd. 
irrow Fabrics (Int.) Ltd.: Macasata Ltd. 
row. Hardwick & Co. Ltd. 

Susy Ware & Co. Ltd.: Uwin Sportswear Ud. 


. :;r 

Extracts from the Statement ofthe 
Chairman, Mr. M-K-Rose. 

Profits for They ear bcferc tax amounted to Cl, 065,7 30 
(1976 0,203,904) before exdtan{rt~rau;adiiisODenui and 
a,QL&JQ4 tlaTb t'L393^H7) after aDowing Ior an 

exchange loss of jC 5I£36 (N76 profit £189,223). 
In the second half-year our making-up companies both 
here and in Holland were not wholly 
‘ successful moMitaiitioBTising costs 

==a^ _ AAiih 4 res ui uin il cliecc oo profitability. 

Sales lumuver increased to 8£&SM£f!. . 
irom CL2£25 J95, an increase of 
‘ appro»teatdyl2?s. 

'j S ; Your lXnKwrs ire reiKiixuneiiduig a fusil dividend 
o! 2. 12Wp per share, making 3. 9209p ptrsbare (l976 
-3.5367Sp per share), the manmuro allowaL 

During they car under review there' has been a 
marked anp r o v em gnt in the performance of oar tattifc 
corn panics. Jersej’&end.iYu.- knitting divisioh, has made 2 ^xxi 
recovery and there is now u stronger forward order book than 
rheix has t^eDfor some tinK. 

. In HoDand,Elvi have nuaaged aoother increase in tnmover 
and they hape traded proStablj' Jersey Trend Pritos? pjarkK , 

. share of exclusive prints mGerroany and France h» 

' -hi V.; 

•' .-r- - r 
° r ' r <r.-.-r 

^ tt fra 


“\Jsach Sci^has again shoQ^qmi£«tnari«bfc growth, 
with demand increaung at a nKisL^tifyingleveL'aod we 
iook to tts ftflUrc cxpaimm qtih&iraage with grea t 


WILLIAM PICKLES & CO. LTD. 101 Portland Street, Manchester M6Q 1EH 


Copies of the Annual report are available Tram the Secretary, Henrietta S t r eet , Binmogbaro 

. -j. - -j- :-a - - A _ 



7 rii ^rj ; 

- r '^t V’/ 
C'K v ' 


^ * 

, J | inU^ 

3 1 .< i * 4 

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1‘iuiUiUitL iiiiitiA idceurt^ Julie . 4 ] 



0 . . . buysDuport J. F. Tigar joins 1 

Swiss connection in — *y GuinilessMahon 


• * 1 1 ^ ff B B Brfl I 1 I VI I I ■ .1 I I ihe steer/nj* sears markc-L. Mr. J. F. Tigar has been the Northern Engineering Indus- 

_* " " '*— * ^ Adu-est. the Berkshire engineering appointed t* - * The Board of tries .Croup. He is managing 

group has bought a subsidiary- of GUINNESS MAHON' and CO. director of Baldwin and Francis 
THE MYSTERIOUS Stani*. v’’ . _ . Duport. the West Midlands indus- 1 Guinness Feat Group) from July and of NEI .Mining Equipment. 

Thomas John»n FimndatiorT^or E ' ne? bu f ine “ *»** « U-iiil holding croup. .3. He was previously assist^ ' * 

SwltserUuid ha* surfaced once cem 1 S 6 B olr P Gwe ,« U ,’« 4 ue 10 tehe plaCB „ The company Involved t* principal .and chief foreign -Mr. D. A. Harris has been 

again In the aftilis of NewS^a «mi ' P " June 30 ‘ 197S ' ? h u ™" "change dealer at the Bank of appointed to the Board of the 

v EWman “&ng S m the new. shares of TILLING CHIEF ON ilrer?^ * ANDERSONS RUBBER COM- 

In February Newman announced 25 p each in Green alls to he issued RID FOR FI IITDDIVF turnover last year nf £20 ini, _. f f ji 4 « ( .^ nI r ANY. 

•that it intended to spend around Pursuant to the ordinary offer 5? rLUllJKlVfc nearly half that of Adwest. The foUcrwirt* changes have * 

£ 3 m on acquiring a 31.25 oer cem are expected to commence today, it win take more than a con- Adwest is payinc £ 2 m tor T* de V 3 ,%,*'*?S ulne E °ard «r. Twm Tniwv has been 

Interest in a Duicb i^S lT J s ™cnded to po« renounce- »'""«***« E "£“~ r * BurStan but it has also a^rd to 2 * SWAN HUNTER SHIP- appointed vice-^man of ^5 

fastening manufacturer, Avdel. ji. be ,, shart \ , certificates of s couplint; activities on repay £ 2 . 7 m worth of loans which BUILDERS on the -appointment of CO-OPERATIVE WHOLESALE 

plus an option to buy the remain* Greenalls and -or cheques for the P^e Site to provide a remedy for Duport had made available to Dr. P. A_ Milne and Sir. N. A. SOCIETY succeedih" Mr EL A. 

ing Shares for a further asm c 2 sh u^!i s,der f n . 0 n ‘ 0 , 2 S? ptJTl « i? W ! rorde , rin H k * ;,ndperiI,an ^ m Burmah. These will now be Sloan to British Shipbuilders: Tooco«i '«STlS^retS Mr 

zle. i^rf-o^r t«r ;~ d • hroueh b *- k b °™- ejmss? srfss. 

iJSra^ext Jiine. ™ P f ? nh S B lv 9 HhP S m * ,plt * r to Profit* from Burman last year son ?n<fHr. R. L Smith. jcWm * C °^ perat ‘ ve 8ank ' 

Detail* nC lr J U :? ds ^* 0 ' . rbe F ^ ldri \ e J,^ re !\ olde . rs - . .. were weak — £ 501.000 before fUnutv managing directors: Mr. __ _ * 



ISLSe 1i^® B * 1 Th? m, o»U. 0t f..r S* TOnnJ's ch.C,^"^ [ n % n s na ” Md ' hm ' ,Bb b *" k b0rr0 ''- TWy 1.^ also . joined ,h, W 

eSraS^ext Jiine. ^ P f ^ th S B lv 9 HhP Fh! *" a ,clt * r to Profits from Burman last year SO n Tnd’Mr. R. L Sinlth. jc^m ’ Co ^*‘ ral ‘ ve 8ank ' 

tain^tn 01 ^ ^ were . ctm_ K?i -isions of the Companies Act. "We belJov^thaUiwhe trading interest ^uggesUn^some £2(KKOOO R^^^aiJto^product/o^kiree" str - G - W. H. Lewis has been 
J° Sha ^ 25^*? a ^- uire the oOWspdlng climate outlined by your chair- pre-la?’ on' ^comm?i5al rates Vf ?«/' S GUcJiSL appointed nwn^ins dirSorTr 

i h at shares in Shipstone m du* course, man (made at ihe time Fluidrivc interest for the borrowings. Some j: ’ .tor-'and' Mr r p t 'i> n ,, ( .i ac the WICKALAN MACHINE TOOL 
, ^ "° £ taJt T e K Up _ released its Interim results), in- 20 per cent of its busies* has d 1 r ^*° r and hfr C. P. Douglas. ^L\nLJF\CTURLNC ^ SaipANY 

ion iw!.K DIRECTOR SEIXS duslrtal transmission manufac- been In supplying components for Personnel three r r. and Mr. J. Carson has been made 

'w wiuc 5 TP«rr» CUAOr^ turers must rorm more substantial the tractor industry, which has „ . . _ * 1B _ . , manufactnrir- direrToT Mr 

has granted the option and lhiLO SHARES .(groups in order to compete been particularly depressed. Mr- John H> Smith has been - - . ,? _ _ ■ . 

h^i I !^ S | t0 » b ^ ^ agnlficant share- Mr. Hyman Kreitman, a former effectively In world markets Tnd On the basis of the historic appointed by the IMPERIAL f'JT 15 “ a director of 

holder In Avdel, has the right to Chairman of the Teas super- in offer an increasingly wide profits Adwest appears to be pay- COLLEGE OF SCIENCE AND ta - 

• . Dack Newmans stake in market chain and new a non- range of products to customers," ing nearly SO times earnings Tor TECHNOLOGY as jerretary to the * 

ATaeL *?« c1J tire director, has sold Sir Robert said. Burman, but ■ Mr. F. V. Walter, college and derk to the governors Mr. Ian Wrigglesworth, MP, has 

It was the same foundation ®*>0.Ww Tesco shares at *3P P*r The letter accompanies offer chairman of Adw'est. says he is from July 1. 19*- q . not the begin- become chairman of the LABOUR 

which bought Lonrho’s 19.5 per snare. The sale on Friday— two documents Tilting has sent to confident that profits will recover ninz of nest month as reported ECONOMIC FINANCE AND 

-cent holding In Newman In May davs after the company had FIuLdrive shareholders giving strongly this year to around £Jra yesterday. He w-ill succeed Mr. TAXATION ASSOCLATION in 

year ? ien «°. w il f° r Iow 5 r Proto-red} 1 ^ details of its bid for the Fluidrive pre-tax. M. J. Davies, who is retiring- place of Lord Houghton, who has 

£ 1.26m m October. Mr. Alan holdings by about ^ telf to issued ordinary capilaL He sees no reason why Burman * re^igoed because of uressure of 

Bartlett, chairman of Newman froundlm shares. The Kreitman -j„ accepting our offer, you cannot rawer lo a level where M ° P ressure 

and now di^rman of the execu- s “ ,d 1 ^? 1 would be exchanging your invest* trading margins amount to * hsSJS,.^^? + 

tive Board of Avdel. took up Jj"*? 1 ?5,i 43ip •* c ^ 0,1 ^ ^ e, »t »« a narrow, technical field between 8 per cent and 10 per r ^"rtpa k hVipf ,, tjr _ * 

200,000 of these shares, the tea '“ ,s a balance Of i.5m for one in a broadly-bascd and com of turnover. For the current 2!^SI? A ?JS; ,, Gp^2 Mr .‘ M - D - Sharp *** been 

200,000 of these shares, the eavu, B a balance- of i.5m for one in a broadly-bascd and com of turnover. For the current Ij 1 Mr .* W - D - Sharp *** been 

remainder being placed among & bares. much lamer international com- year some £l.lm'bis already been ™? p c a " y from Georce Bown « y appoimed a director of ARBL'TH- j 

Newman, associates and institu- ,, . ^ , f* an y with a progressive and earmarked for plant replacement. . NOT LATHAM AND CO. 

•bans. HAWK.ER SIDDELEi sound record, wide opportunities The* purchase has still lo be Mr. John McCarthy has been 

^documents reveal that THE OFFER hv Hawker Slddelev . cr0H ! th and ffreat Cnancial studied by the Monopolies Com- Mr. Ted Lansdowne formerly appointed a director at 

Avdw, directors are stiU for? Gi^n jKh ortSS JSw 3 Str ^ n ^ - J - mission which is known tu be marketing director MARLEY HARRISON AND SONS (HIGH 

casting pre-tax profits of £22ra Carlton Industries h L become 7,1 ® Fluidnve Boa rd. which has currently resistant to further HOlVfE^tRE. ha^. hecn appointed WYCOMBE). He joins the com- 

-for the year to June 30. La?t Sly CncoudSal SeeptSSL a,ready rejecrecf the bid. is concentration in British industry, managing director Hr Doug fn>m Eric Bemrose . 

year pre-tax profits were £i5m have been reee/J-eli f«JSf P S»re curr c n Hy examining the docu- However, a major factor in Splckernrii. who was merchants- K 


. *3 £3Bm i which its subsidiaries in respect or Udys ' and nromotlnns manager Mr. East Midlands regional Board of 

term borrow- 52,T2a ordinary share* of Carlton BARCLAYS /1TC 90 P 1 s1, Roy Saunders continues to head LLOYDS BANK which sits under 

lng5 of £7.2m and short term and. in fulfilment of the. tmder- ® A KULATb/UL L.b. owned. the buying team. ^chair^^in m Mr G r 

borrowings of t2.3m. taking given by LMS. from a sub- Barclays Bank has written to Adwest * pre-tax profits last m “iL™ SiLJL^LJ?- L 

Under the tero»« r, f tk. sidiary of LMS in respect of shareholders urging them to vote yoar were ■ £o - 6m on turnover uf . f cnt - The appointment is from 

«3g«? SSL. or iis-iljwi* Offer for t'. ’SPtP'J! J2! 

tumiMiwwun rong term borrow- 52,725 ordinary share* of Canton btnn avc /iTr w vcl ar su »- “■ 

lngs of £7.2m and short term and. in fulfilment of the. Under- AKCLAYS/ITC L.b. owned, 

borrowings of t2.3m. taking given by LMS. from a sub- Barclays Bank has written to Adwest s pre-tax profits last 

Under the terms of the a™ sidiary of LMS in respect of shareholders urging them to vote were ^- 6m on turnover uf 
ment Newman is °lo refinan^ i 3 ’ 8,17 ^ 75 ordinary share* of J" ,5|i? ur ° f Ji ,e 1 aa T eed offer for £42m * 

£876.000 of long term borrowing Car,ton - Total acceptances of the * ^ ' cstxnent Trust Corporation at 

by December ™ n £SS ^ have therefore been ■} extraordinary meetTng on July CENTROVINCIAL 

its option to buy the rest of thi r ecerved in respect of. 5L9. per 1 Irtilo- thn »A-n, n . r .v. ' r ,» tin In I ic in m,1ra a 

JAti * rest r ° r } he cent of the issued "ordliiarv » Under the terras the deal. Centrovincial is to make a 

refinance a further sh arps issued auunary g arcIays w m buy ^ f £g 3 £23u,0u0 agreed bid for the 

£3.9m by December L«J0. nou . L" ^ares and then sell itto iff ordinary and. 6 per cent 

be that the market leader in the become sales manager and Mr. Mr. Harold Reynolds has been 

steenne »par induurv Pam B 5ch anl GlrHng is rmw advertising made a director of the North and 

£S {Irttlfso oei and nromotions manager Mr. East Midland* regional Board of 

uTlined Roy Saunders continues to head LLOYDS BANK which sits under 

Ad west's pre-tax profits last the buying team. chairmanship of Mr. C. C. 

year were £5.6m on turnover uf KcnL The appointment is from 

£42m. Mr. Alan Rudge has been July 1. Mr. Rejuoids is join I 

an no in ted marketing director of managing director of Whitworth 
rFNTRDVTNPI A r DEWRANCE DRESSER. He was Holdings and a director of 

t.cniKU»lJll.iAL formerly marketing manager. Weetabix. 

Lord Annan has been annoinrpd 
trustee of the NATIONAL 



offers on be half of Greenall July 
Whttley and Co. to acquire the 

issued capita] of Janies Shipstone V fl *i r 'Jl ,S ,r ? nsa « 1 o"s will provide the bank SHARE STAKES 

have become unconditional in^ °all b f < ^ me unconditional, com- with the opportunity to raise manager of 

respects. . Potion of the agreement, under some £83m of new capital without Sir Joseph Cans ton and Sons — division of 

a u ' , wh fr* Carlton is to acquire for the need to caU on stockholders Mr. F. C. B. Bland, a director. °^ en anpohil 

m re S® lved f f° m Hawker Siddeley** sub- for additional funds, and to sold 100,000 ordinary shares on company 

rev* nor ,1 /r J t - sidiary. Crompton Parkinson, its increase ordinary dividends by20 J une 21. Reducing his holding to 

per cent) and lo3.943 3^> lead-acid automotive and traction per cent 1,900,000 shares <24.5 per cent). Mr John 

uuiy zi. ia/». holders that the effect of these p , any - Two new d >rectors have 

Now that the first offer, has transartions will nrovide rhe bank cu a dc cti t'r-c- Mr. David Bangham. marketing also been appointed. They are 

become fully unconditional, com- vvith the opnormSitv to rf,se SHARE STAKES manager of the saws and tools Mr. J. R. Bolton, responsible for 

pletion of the agreement, under some £85m of new capital uithout Sir Joseph Causton and Sons— division of SANDVTK UK. has contracts In the London area and 

which Carlton is to acquire for the need to call on stockholders Mr. F. C. B. Bland, a director. ^ en appointed to the board of Mr. J. B. Ainsworth with the 

cash from Hawker Siddeley*s sub- for additional funds, and to sold 100,000 ordinary shares on »* company. same responsibilities in the East 

sidiary, Crompton ParkiTt»n. its increase ordinary dividends by20 J u°e 21. Reducing his holding to + Midlands, 

lead-acid automotive and traction per cent 1,900,000 shares <24.5 per cent). Mr. John Edwards has been * 

'* 1 " ' — . Herman Smith — Donegal appointed managing director of Mr. John Redgrave has been 

|[ Se curties has acquired a further the products divisions of LOUIS appointed chairman of WALTER 

1 1 47,000 ordinary shares increasing C. EDWARDS AND SONS (MAN- LAWRENCE LTD He succeeds 

llfllt CTCCI PODDnDATIfkM {jits holding to 252,000 shares fa.44 CHESTER) following the retire- Mr. Brian Prichard, who will re- 

IIUH 9IU.L OulflTUilA I lull per cent). Mr. M. Herman Smith ment of Mr. Genrge McCord. ma j n a director of the parent 

. . a fJ. d Mr. R. Herman Smith • ■ ■ * Board and a director of Walter 

AlflTII ACD|PA\ TiMITEKl iSSST* ar *»i« ls0 d,reclors of Mr. James Bent has been Lawrence Estates. Mr. T. J. C. 

UlllSl HrilBUHl LlmllCU Donegal Securities. appointed to ihe board of NEI Maw by has become secretary of 

' ■ ^duslrres_ - Mr. G. F. BRUCE PEEBLES, a member of Walter Laurence Ltd. 

oroted in the ^Itc of South. Africa f 0 '*&£"*& SSSf ^ 

try general meeting of shareholders of the Corporation held ' per cent)* 1 l ° 3J9,226 shares {l0 4 

Mowing salient points were highlighted by the Chairman, Burton Group — Mrs. B. J. 

Karmei, tfie 1 wife of Mr. D. 
y Karmei, a director, has sold 

a«tw '• " -U- • 236.958 ‘A* ordinary shares at 

- 5.;. .?**:-• 114p. 

after for'.tbe-d ^mon^ho^en^a J^rii-*30th amounts to Araoriated Newspapers Group 

or the cocresponding period k the previ<ms. year was R126 000. Ho "- Ver ^ Harmsworth, a 

jase in group profit of RI 225 000. Tb^jncrease Is mainly director, has sold 20,000 ordinary 

fits in the steel division whilst ALCOR. Veldraaster, copper lasSf ff 

adversely A further decline, in demand for aluminium r?rav° redirect or h haf purchased 

was experienced which resulted in a 70 per cent drop in iB'oriK Iha™ pureftased 

roducts. The dosing of certain aluminium production units 'e. J. RUev^ Holdings — Mr. J. 

ng hours were inevitable. Slater,- a director, has acquired 

also affected the market for copper and castings and a 6.000 ordinary shares. Mr. D. C. K. 

demand for these products was experienced during the last Browning, a director, has dis- 

f these divisions for the first 4 months of the year are lower posed of 146.000 ordinary shares. 

:orresponding period the previous year. Randall Group: Ferguson 

realised a profit for the -period under review and market Industrial Holdings has acquired 

val for the types of steel products which USCO manufactures. a further 40.000 shares, increasing 

xchants were kept abnormally low due to the. recessionary ‘ ts holding to 265,000 shares <.104 

shment of stocks also contributed towards the better demand ^pofiy^Peck Holdings)- Mr R 

tt groups were 14 per «nt higher then u>e corresponding SSS^dSi!?!!' Sp°“f j'uSI’ 23° 

■'ase in demand for alMl Products fflanufectured by the GlKtopTorfhaS'd 2i.5m ordinarT 

units which were dosed down .during 19 <6/7« due to shares at Hop on June 23. 

Industrial recession affects results 

The 55th Annual Genera! Meeting of The John Bright Group 
Limited will be held in London on July 19. 1978. The 
following is a summary of the circulated Statement of the 
■ Chairman , Mr. i.M.L. D. Forde, for the year ended April 1, 

Trading conditions were affected by a sharp fall in the price of 
cotton which forced us to write down the value of bur ra w 
cotton stocks and resulted fn a stock loss of £271 ,000- Also 
demand for tyre cord deteriorated to such an extent that we 
were no longer justified in maintaining production at Preston, 
We therefore decided to close down the whole of our 
operation there. The net cost of this closure amounting to 
over £33,000 has been charged in full 'against this year's 

Although turnover was.littfe changed net profits after tax (but 
before the closure cost) have shown a sharp fall to £355,047 
as against £600,471 a year ago. In view, however, of the 
exceptional nature of the two losses and the strong financial 
position of the Group, your Board has decided to recommend 
a Final Dividend payment on the Ordinary Stock at 1.47p per 
Ordinary Stock Unit maintaining the total dividend at 2.42p 
for the year. 

Demand for the products of the IndustrialTextiles Division 
became increasingly affected by the world-wide recession in 
industrial activity. Sales fell sharply and pressure on prices 
both from overseas and home competition became severe. 

Our Spinning Division was similarly affected. Underthese 
conditions much of this business became unprofitable but by 
availing ourselves of the Temporary Employment Subsidy wa 
were able to accept such orders and thus maintain in 
employment a greater number of people than would 
otherwise have been possible. 

In view of-the reduced level of activity the opportunity has 
been taken to press forward with the modernisation 
programme. The new weaving shed has now been complete^ 
and new machinery is at present being installed. . 

In a market which has been far from buoyant, our sales of 
carpet yarn. have been maintained at a satisfactory level and 
plans are well advanced toincrease our productive capacity 
in this field. 

The volume of our tyre cord sales was maintained by 
obtaining increased business for export which carries a lower 
profit margin. The general swing to radial tyres has caused a 
world decline in the demand for textile reinforcement used in 
tyres but our tyre cord production unit in Rochdale is one of 
the most modern in Europe and it should be possible to 
retain this unit on a profitable level of production. 

There is no clearevidence as yet of a sustained recovery in 
demand for our products. The timing ofthis is still * 
unpredictable, but I am confideritthat the Company with its 
modernised capacity should be in a strong position to reap the 
benefit when it comes. 


( Incorporated in the ffepublic of South Africa I 

At the sixty -sixth ordinary general meeting of shareholders of the Corporation held 
on 20th June, 1978. the following salient points were- highlighted by the Chairman, 
Dr. M. D. Marais: . '• 

1. GROUP PRp^ITS TO.DATE- »-V-. « .gflfe 

Group unau^ed .'profit after ; W for' the-d ^ontWen&ed ^j'rij^SOth amounts to 
Rl 351 000. The profit for the corresponding period .the -prerihuiyear was K126 000. 
This represents an increase in group profit of RI 225 000. Tbis-Jircrease Is mainly 
attributed to higher profits in the steel division whilst ALCOR. Veldraaster, copper 
and castings performed adversely. A further decline', iu demand for aluminium 
conductor from Escom was experienced which resulted in a 70 per cent drop in 
despatches of ALCOR products. The closing of certain aluminium production units 
and curtailment nf working hours were inevitable. 

Recessionary conditions also affected the market for copper and castings and a 
pronounced reduction in demand for these products was experienced during the last 
6 months. The results of these divisions for the first 4 months of the year are lower 
in comparison with the corresponding period the previous year. 

Special and mild steels realised a profit for tbe period under review and market 
conditions indicate a revival for the types of steel products which USCO manufactures. 
Stock levels of steel merchants were kept abnormally low due to the. recessionary 
situation and the replenishment of stocks also contributed towards the better demand 
v.-hich was experienced. 

Despatches of the product groups were 14 per cent higher than the corresponding 
period tbe previous year. 

Due to the sharp increase in demand for steel products manufactured by the 
Corporation, production units which were dosed down .daring 1976/77 due to 
recessionary conditions, were put into operation and working hours extended. 
Further cost saving measures remain under the spotlight and will be extended where 


(a) Mild and Special Steels J _ .... „ . . . , 

The mild steel market remains weak and is traditionally highly competitive. 
The market for special steels however, is favourably influenced by the incresued 
cold price, the reasonably stable motor industry and general slock build-up. . 
The demand for forgings is satisfactory but activities. in tbe heavy engineering 
sector are still very low and the demand for carbon forgings i* poor. A revival 
in the agricultural sector is still absent and the demand Tor agricultural steels 
remains low. ' ‘ .w , , 

During 197S the Corporation will continence with the production of certain 
tool and high speed steels, products which to date have not been manufactured 
in South Africa, and ’the demand appears to be very. promising. The general 
expectations are that sales of steel products will be satisfactory during 1978 and 
that this section will maintain its profit position. 

Thfde?rease in iron ore mining activities is adversely influencing the demand 
fnr castings : Infiltration by competitors in the Corporation s traditional 
markets is increasing as a result of the commissioning of new plants resulting 

policy ver^fica t^n C and ! peDetration 1 int^ Mher esteiiiished casting markets 

Is essential to ensure an acceptable utilization of the available production 

Rowe ad Pitman, Hurst-Brown, 
on June 25. <old for a dk- 
cretioniry investment client 624 
Thomas TQIinK Ordinary shares 
at 113 jp. 

Hedrlcrwivk Stir-liner Grunibur 
bought 10.11(H) Wood and Son 
(Holdings) ai .Vtp on June 25 on 
behair or associates of Newman 

at Wm. 

“ D Pa Srtic recovery of market conditions for castincs is envisaged during 1978. 

(c) Jp»r market improvement for copper cables, the biggest 

No significant signs of . aot j cea j)]e. The demand for copper from the 

T n «2K? macbiS y sert w P bas’ reduced considerably and .with limited expend!- 
b?{»“ S m. rfcet condition for copper on be considered tbe 

.- ’ weakest - ?fSffiw. t e r nf e f. , sU*M improvement in th& economy, consumption 
In spire o T in*«U°“ s «} * a «“d and oniv a small portion of. the Corporation s 
of copper is con ?J) n ?®^ 9 I t fav0 urably is a result of a higher demand from the 
product range wiU .benefit .favours industry, 

motor ^j£d y th?t d mJSS Conditions for copper will remain depressed during 
I 97 R inutiiat this sertion wiU realise a profit ; 
fd) Veldmaster ■ . ]nss after the first 4 months of IBiS. The 

Veldmaster is .® tjl1 the corSpondlng. period the previora-year. Tt is 

position is similar to that of tno c year with a loss. This situation 

-Expected that VeldmastM wUJ a,a " £ uijjrket ^ a u oE th ^ general 

is mainly attributed to a. dec! ine m to re | a tive to-markeung and pricing 

economiesiump. Certain steps will have a favourable influence 

. of Veldmaster products w men. it « h 

: on Veldmaster performance ffl.?™. •'.•• •'= . . 

market conditions.^an- be expected before 

<e) S^Sreelable recovery in * Vw?^rs? beSe the American balaore of payment 

s-sasss'&ss-.'f isssz 

■ ? ta , fe tike the Steel industry. USCO is inw months were a pleasant 

■ fi-ss, gg » despi,e w “ k 

: sssskSSsst a&JSi-wK 

The poor ton , an d cm to . gun cootinnc. . 

• divisions if 1^ “ conditions of ^ ^mnroveme'nt in the present inflation 

despite the XfSmists I foresee %r.cent in 1978 and an even 

Contrary t0 °Hj i( f t ^consumer infiation rate of t world pressure on South 

^ '■ hich are 10 .* 

ihe —r “ 

• tSCO^iU« and U, increase 

’ E»errlWng,P“ s5,ble 15 " 

lls proatabllW. 23rd June 1978 

fc-HD Marais 

:fe>’: r»'a\q nan Of/the 

At the AGM of William Pirkles sJ 
Mr. C. Harold Buckley, the chair- 
man, said he would be le^s than 
honest, if he intimated that 197S 
had opened up well, but he is 
very optimistic and confident 
about the future of the Group. 

Jr is soundly based, he told 
members, and ihe subsidiaries 
are well diversified in garments 
for men. women and children, 
household textiles, soft furnish- 
ing fabrics, sportswear, upholstery 

fabrics and neckties. |gg| 

Statement Page 30 nffilisj 

Twist link 

GKN Distributors and The 
Sheftiid Twisl Drill and Steel 
Company have formed a joint 
company for the disirihution of 
cutting tools, socket screws, hand 
tools and general engineers' 
equipment to the eii^ineerni^ 

This company will be known 
as Dormer Distribution (‘Tools), 
and wlIJ sell exclusively to 
engineering merchants and djstri- 
butors. tl .will carry a full range 
of Dormer culling loots. GKX 
socket screws and complementary 
ranges of engineering tools. 

Progress by 
Percy Bilton 

At the ACM oT Percy Billon, 
the chairman iuid that the 
private housing division was now 
achieving iis larqeied profitability 
after substantial rrnreaninatinn. 
Contract housing was under con- 
trol and would no lonser be a 
drain on the resources of the 
group. Meanwhile, cash had been 
reduced to make ime.srmems 
‘•which titil secure significant 
future arrow ih tn your group's 
property patiioiio." 

Ybur place in 

the big build-up 

“The success of our first assault gentlemen, is now 
overwhelmingly clear. 

"200,000 sq A. of warehousing and light industrial 
premises in the superb, new Euro link complex at 
Sittingboume* Kent have now been occupied. 

"Heartiest congratulations! 

“Your next task is therefore obvious: immediately 
occupy die remaining limited number of units available from 
5,000 sq.ft, up to 30,000 sq.ft. Your orders are to capture the 
next 100.000 sqdt as it becomes available during the nest 
12 months. 

"Once established, you can expand at wiU across 20 • 
acres of planned future development 

"I need not remind you of the vital strategic position of 
tiie site. Eurolink is minutes from the M2 motorway, 55 miles 
from London, IS miles from Dover, and within easy striking 
distance of the roU-on/foIl-off facilities at Sheerness. 

“Movement of transport and supplies is supremely easy 
due tu the ?ite‘$ size and parking facilities. Eaves of all 
buildings are 20 ft. high. 

^ _ p ___ 

“And locaTiranspBit servicesjn^m^ities wiU Suit 

“Gentlemen. Eurofink and success is at your feet* 

For further information contact HQ'beloic ’ 

I ^Tb: Fuller Horsey Sons & Cassel 52 Bow Lane, 

London EC4M9ET , -Fv-^ '.V 4 . I 

I Please send me full infonnab'on on the a 

Eurolink Industrial Gotire. > 1 

I Name -« > • f * ■■ - ; i * ' ■ 

■ Company 

I AddreSg * ■ ; L: 

U =— 

H 24 

Fuller Horsey McDaniel & Daw 

Sons & Cassel * Chartered Surveyors 

The Eurolink Industrial Centre is a: j pint operation by 
The London Life Association Limited, and The Blue Circle Group. 





$ 378 m bid for Cutler-Hammer 


NEW YOKI>- « ,unC 26 - 

diversified auto industry 
supplier, today moved towards a 
major presence in electronic 
components manufacture by 
announcing a $srs.5m tender 
offer Tor Cutler-Hammer, the 
Milwaukee company in which U 
acquired a 32 per cent holding 
two weeks ago. 

Eaton's move has been widely 
expected since it started to 
unravel the complicated web of 
shared ownership surrounding 
Culler-Hammer by spending 
9117.5m purchasing Tyco 
Laboratories’ stake in the elec- 
tronics company. This valued 
Cutler-Hammer at 955 a share 
and its follow-on offer of S5S a 

share for the balancing 6S per 
cent is being recommended for 
acceptance by the CuiJer- 
Hanimer board. 

The total purchase values 
Cutler-Hammer at about 14 limes 
last year's earnings of 94.12 a 
share, which is broadly in line 
with the going premium in this 
years takeover bids. Of more 
immediate importance is that $59 
a share offers Kopper Company, 
a Pittsburgh engineering firm, 
about 915 a share more than it 
paid in acquiring a 21 per cent 
stake in Cutler-Hammer last 

.An Eaton spokesman said 

today that Hoppers bad not yet 

indicated whether it would 
tender its stock but that Eaton 
is apparently confident that its 
price is sufficiently attractive. 

Hoppers bough! into Cutler- 
Hammer as a friendly move 
designed to fend off what was 
interpreted as a gradual acquisi- 
tion by Tyco Laboratories. When 
Tyco sold its holdings to Eaton, 
its ambition was to purchase 
Curler-Hammers 33.5 per cent 
holding in another electronics 
company. Leeds and Northmp. 
Eaton agreed to make this sale 
to Tyco should it acquire Culler- 
Hammer but then Cutler- 
Hammer surprised everyone by 
selling its Leeds and Northrop 
slake last wck to General Signal. 

Cutler-Hammer will be a 
major acquisition lor Eaton 
which could well >«-• looking to 
develop ;he company's expertise 
into developing electronic con- 
trol? systems for the auto 
industry. | n any case. CuUer- 
Harnmcr will give Eaton repre- 
sentation in a range of new 
markets including, industrial, 
aerospace, air traffic control, 
consumer and bousing markets. 

As an alternative to its $5S 
a share cash offer. Eaton is offer- 
ing a subordinated iiromiasoiy 
note for the same amount with 
an annual interest rate of 7i 
per cent payable in periodic 
instalments up to a maximum of 
In years. 





By Diana Smith ' ' - 

THE Bank of America, together BY NICHOLAS COLCHESTERV. r ... 

with its Brazilian commercial toteRNATIONAL - Telephone into ITTV 

bank associate. Banco Interna- J* .. rrm activities. Hfr .conceded. But L S,. : 

Goodyear sees Peak yields on Treasury bonds 

I.Hin nknniYA V ^ 

little change 

this year 

AKRON. June 26. 

expects 197S to be another tran- 
sition year of solid but un- 
spectacular earnings. 

But Goodyear, which is the 
nation's largest tyre company, is 
getting its operations in shape to 
produce a major profit increase 
a Tew years from now, the chair- 
man and chief executive, Mr. 
Charles J. Pilliod Jr, said. 

Profits for 1979 wiiJ be “ in 
. the same area as last year.” when 
Goodyear earned a record 
?205.9m or £2.95 a share. 

With start-up expense on new 
plant and closing expense on old 
facilities, Goodyear officials 
did not expect spectacular results 
for 197S be said. Profits this year 
will depend heavily on pricing, 
particularly pricing of tyres for 
1979 model cars and trucks. 

Once Goodyear's new plants 
are in full operation, and some 
of the industry's older capacity 
is phased out. Goodyear expects 
to start cashiqc in on its heavy 
investment in facilities and pro- 
duct development Mr. Pilliod 
said. “It could start next year 
or we could have another couple 
of years of medium results." he 
said. But he is confident that 
sharply higher profits will result 
eventually from the efforts of 
the past five or six years. 

Over the pa«; five years. Good- 
year invested $55Um to $600m in 
"plant and equipment to produce 
radial tyres in the U.S. including 
the cost of convert in 2 existing 
tyre plants. The company also 
incurred heavy research and 
development expense on radial 
• tyres and proprietary equipment 
to produce those tyres. 

“We've installed what we 
think are the most efficient 
machines in the industry. We are 
looking for l«»vv production cost 
and for higher quality tyres." a 
combination that he expects will 
slve Goodyear an edge over 
other tyre producers. AP-DJ 


NEW YORK- June 26. 

YIELDS ON new long-term U.S. 
Treasury bond Issues are ex- 
pected to reach near record 
levels this week when the 
Treasury sells Sl.Tobn of new 
15-year bonds. 

The nearest comparable 
Treasury issue now trading, the 
75 per cent of 1993. has been 
trading to yield around 8.6 per 
cent and, with the market expect- 
ing interest rales to continue to 

rise and the Treasury to become 
a heavy net borrower in the 
second half uf ihe year, market 
estimates suagesi ihat the new 
issue will be sold to yield 
around S.7 p^r ceni. 

Although yields on short-dated 
Treasury issues have been higher 
in the pasl. this would be ihe 
highest on a long-dated security. 

After last week's price declines, 
money and bond markets in New 

York are expected to trade 
nervously this week against a 
background oF predictions of a 
further rise in prime rates and 
a possible increase to 7i per cent 
in the Federal Reserve's discount 

Some analysts are also predict- 
ing that the Fed could raise 
commercial hank reserve require- 
ments in order to lighten the 
credit markets. 

*T2£*. two* third, of the 3??“ P* -- oooti^in^onC w« ^,£3? 
Stock of Multibanco are held by 
APLUR (the Brazilian associ* itt!. 

stona 1st. In future, aplub wui disappointing.- - But. in -' fee strongly from -an-, improvement .fitr 

the non-i 

“yn out . ■ _ 



Gulf Western 
Sherwin deal 

Sherwin-Williams said it has 
lea rood that Gulf Western In- 

B; ri 

DiiuuR jib* im • * « * * r. .-Safey Special .cm rorr r> • : 

would be up by. S3bn to of the group'*, .- 

and the group’s qet profit sjdlls. The turn over ol^Uie'csrar wbula . - " 

* " — lifejKSfr sumer group is *5cp ectea ;*a ®rQ3B^Aadiiuttea h^.-7=Eajrepfe^ ' : " •- 

TOrCr, b¥ from S3^6bn to.S3^bn:tfiiS: psar.isale^ {wera -:MySfe;rpKng; ihi. . 

increase -by well, over 
cent -from last year's figure; 
S562m. But he stressed 
improvement was 

ssed thatrQui- -The manajgemeirt:expects^.‘^^^tfes^fllydtt:|rTV r COamitme : *" 
conditional tinued strength” in :Iosujiat^et /hgfrrnfof '■ chaogdL: J. - 

nas acnuireo -.on uuu - — equilibrium.?? and finance ' "* 

of Sherwfn-WlSiains between the dollar and. European '^3 5bn to $ 4 b n ) . . . an d . . recovery iefc.-tts sfiarehoiaefrs^io'., Europe 


common, about 8.8 per cent of 

Greyhound offer for computer company 

NEW YORK. June 26. 

DCL HAS received “an informal 
proposal" from a Greyhound 
Corporation subsidiary for a 
merger valued at nearly $15. 2m. 

Mr. James P. Hassctt. presi- 
dent and chief executive officer 
of DCL, said that the directors 
had not studied the proposal 
“but nuted tbat the price appears 
tow in light of the market value 
of DCL's portfolio of computer 

Under the proposal. DCL 
would be merged into Greyhound 
Computer Corporation, with DCL 
sb a re holders receiving $4.50 a 

share. DCL said that certain of 
its shareholders would be 
offered, for each share. SI. 30 and 
8 per cent five year subordinated 
notes due I9S3 of Greyhound 
Computer with a face amount of 
$3 23 a DCL share in advance of 
the merger. 

DCL currently has about 3 3m 
shares outstanding. 

DCL said that Greyhound Com- 
puter had indicated it would 
make a formal offer to DCL only 
if DCL directors would approve 

A merger would be subject to 
various conditions including DCL 
shareholder approval. 

Mr. Hassett said his Board 
would be studying the proposal 
and was considering retaining an 
investment banking firm to 
advise DCL. Mr. John Diehold. 
chairman of DCL and a major 
shareholder, said that “on the 
surface this appears to be a fair 
proposal and f believe the 
shareholders should have the 
opportunity to consider the pro- 


had no contact with 
Western. Sherwin learned 
the purchase through a schedule 
13D filed with the SEC 
Western on June 19. 

? ■ ,. t : 26 " 

Sharp expanding into 



THE Sharp Group — the Brazilian to make the purchase, thus 
offshoot of Japan's major achieving full status as a major 
domestic appliance exporter — is financial conglomerate, 
steadily consolidating its position . M thi Sharn 

in * ne* area, me ^ 

Tbs' group, through 1U homing 

company the Duravel Leasing iwWTwih 

L^T^nce "‘" being "tail?' r^mch.rad. 

252? 2 Insurance broker. . «J,h 

leasing company and an invest- uie nexi lwo nr mrec 

went bank. By its own admission, mo ns ' 

if aayoae would care to sell a Starting with a capita? of 
commercial bank and insurance CrfiOra (S3.3Snil, which will 
company. Sharp would be happy swiftly be increased to CrlOOm 


<$5.64m). the bank will operate 
mainly in the lucrative areas of 
Rio do Janeiro, Sao Paulo and 
Manaus, the latter a free zone 
where a thriving trade in 
domestic appliances has helped 
to ■swell Sharp’s profitability. 

Through its stockbroking firm 
Valbras. Sharp has an 'association 
with the Banque Rothschild of 
France, and it is reported that 
not only Rothschild but also 
other foreign banks are 
interested in taking a minority 
share in Sharp's new Banco 
Independencia-Decxed venture. 

Higbee loss 

Faced with falling sales volume _ 

Hig b^.^the^department' store WEALTHY U.S. steel orders Sr U.S. Steel Corporation, said thaf May Jinpot^thfe -week — the! 

chain, expects a loss in the fiscal tbJrd Quarter delivery are. strength fn' those -tWo mQnths exeoijti.ves.wori^ thft tiie eariJr- .. 
second quarter ending July 27 enww ^ 3n e steel exeeutwesjtb ordere led it to tkwsf its ; ,fore(^t^su3®^;^o^riiaBgiriif the mark .. 
that will exceed the year-earlier believe tiiat the second . Ealf for 1973 steel conaumptidh:- by ^ ;initsatoi5et.^ -"Ope." . steeUnakf.".'; 
reslated loss of $683,000, Mr. P roSt crunch of the pasf'fwii lm to as last: week, to lllmifons. &ateariterexjfnessed confidem - 
Herbert E. Strawbridge, chair- y pars need not be repeated;iu: U.S. Steel feejs ^comrortable - " in fourth-’ rquarter demat 
man and president said ’reports I0 ? 3 - . . -"-' --.V that 9Sm tons »; a con^eraatiyei'.V A uipfuro ; j^n«nyy %ays-shipmen 

AP-DJ from Cleveland. He Yet many steelmakers' Earlier, it predicted shipments mapi ease; leltectfng; “a modera- " 

said full-year results remain expect to report shartdy revivftig-bv U.S. producers tlusi year: ihg ecbnbiny ahd^sqme Jhveii toi. 
unceruin. second quarter profits, some- ate would rise from list year’s. 91.1m- ruflibJk!V ! ■ - f 1 

HnnAim/Ail mantas switching their earlier wariness tons lo a range of- 85nr to. lOlte ^■.&d. fa& : hoyr$yei M "th* v ^reogI 

noneyweu merger Of market softness to. the fourth tons, depending on imports.- oT^Ehe market ip continuing^ ar 

Honeywell and Spectronlcs quarter from the third. . Some steelmakers -see., fourth wonld Seem to assurc us tbat tf 

have signed a formal agreement Steelmakers claim that.-toeir quarter uncertainty lurking in tlri^-qngrter^fU- bib -erttreme) * - 
providing for the previously an- plans for a broadibased price - heavier than expected 3mperts ; »trpng,”.‘i said ■ : Ur./ - J. . JUchai .. 
nounced merger of Spectronlcs increase on July 30 have^ ■■■ndt in April. While they see declirieii; .Ciimto,:' -senior .vice presides 
into Honeywell in a tax-free robbed much tonnage ahead — the Goyetniaeat ta'ay commercial for V-S. Steeh' . . 

exchange of stock valued at some August and September. Indeed,, announce a sharp downturn in Agencart^?" 1, i*' : - - - r ■. •..*■_ ' 


$24m. AP-DJ reports from 
Minniapolis. The acquisition 
has been approved by the boards 
of both companies, but is still 
subject to the approval of the 
holders of two- thirds of Spec-, 
ironies shares. Honeywell said 
that several of Spectronics' 
largest holders, who hold about 
48 per cent of the shares, have EURODOLLAR 

/•’Jj *;/ • ' . . ' .. v \ " ‘x ’• .. ' . . 

Reaction in D-Mark issues 


This advertisement appears as a matter of record only 



US $ 100.000.000 

medium term loan 

Managed by 











Co -managed by 


Provided by 
















bond : prices at a somewhat tighter level 1 than ^ frm • ;■ 

agreed to vote in favour of the marked time yesterday in quiet those of the.- GUy of. JKobe’s -Behralip: : - : j. ■ w ).■' . 

merger, which Honeywell expects conditions while D^Mark prices offering* which ^guaranteed by'. Sojiatracfe -stjUsr 

to complete in late August . showed some reaction to the the Japanese Government The hydTocarbons>coaipany, is rail — 

'Vliiirllp {Smith ■ • • • continuing weakness iq - c the Austria^ J)onds .will have a tending. SaMnI:g|oars.i$gLnL IIt , 

nMie..«hThTv- j S? 1 ™* 11 domestic , bond maricet., year ftnei' maturity witK att bight* hy. meanrW'jiTfe^yelan Issue 

Middle South Utilities announced Three new issuer .-were year [a^ertge^fe CKohe-^ Is; ah;. 8i^er. ^nt'jlkinds.. The lea > 

net earnings for the five announced in / different eight-year- bulfel), whDe- the manager^ ^atemation?i vuc- J 
months to May 31 of 75 cents a currencies. • ' ■ • - - • ■ — • 

share against 47 cents previously. 

pricing includes >a 5J per. cent Bank, Sonatracfr managers hav 
, Dni - . - In dollars, the' major new . coupon at . par. The coupon oh recentlyl' .hMn ^ visiUng . Gul 

SSSin 16 ®^ N 5, , r e iS issue announcement was a $30m the Kobe issue is alsh5J percent bankers with aV presentation, c. 

i»- . . m, ib - uiuiuum.guiuut « ywiu w 4iuw ■ uuuntu nisu a . j/ibocuiauuii . l 

^«v.. < rLrf a t a,nst floating rate note iFRN) for but the price is 99pxo put the its; future prospects as a^sesse ‘ 

operating Tf^enues of S6-7.37m Argentina's largest commercial yield at 5.83 per cents. . ' • by American consultants. : ‘ 

compared with S5 15.54m. ha „ k . lhp ctatmnwnMl Ranrn rie: ; - 

Increase for 
Jim Walter 

bank, the state-owned Banco dc 
la Nacion. The five-year hullet 
issue offers interest at a quarter 
of a point over LIBOR or S per 
cent, whichever is the higher 
Lead manager is European 
NEW YORK. June 26. Banking 
THE building materials company For a borrower of this class. 
Jim Waller Corporation had tf ie margin over LIBOR is small, 
earniius per share of S3.35 for However, the minimum rate is 
the first nine months of the higher than usual. The issue is 
current fiscal year, compared priced at par. 
with S2.93 for the comparable The Danish Government has 
period of last year. announced that it has arranged 

The soya processing and foods a S50m private placement via 
company Central Soya Company Morgan Stanley International 

made SI.63 a share for the same with the interest rate set at 9.15 
period against last year’s S3 per cent on a ten-year bullet 
cents, while the mobile homes maturity, 
producer Skyline Corporation The Ljubianska Banka FRN 
had earnings of $1.39 a share has been priced at par. 
compared with AS cents for the In the D-Mark sector, the 
full year. terms of Austria’s DM 100m 

Agencies private placement have been set 



Notice is hereby given in accordance with the 
Society's Rules that as from 1 st July 1 978 the 
following rates of interest per annum will be paid 
on the various types of investment account:— 

Ordinary Shares 6.90% Equivalent 
Monthly Income Shares 6.90% i0 



6 Month Term Shares 7.40% (where 

2 year Period Shares 7.90% 1”“^^ 

3 year Period Shares 8.20% at the basic 

_ ina/ rate of 33% J 
Subscription Shares 8.40% 





interest rates paid on discontinued previous issues of period 
shares will increase by 1 .20% net. Rates paid on accounts 
subject to basic rate tax will be increased by 1.20% p.a. 

176 London Rd., North End, Portsmouth. 

Member of Building Societies Association 
authorised for investments by trustees. 

Societa per Azioni — Capitale SociaJe £6,000,000,000 
Head Office: Torino (Italia) — Corso Emilia, 6 
ILS. $6,500,000 Convertible Bond Loan 
8% 1973-1981. 

N. 9 Dividend Coupon Payment 

JnJy 1st, J978 

Bondbearers are hereby informed that the expiring 
coupon will be payable as from July 1st, WS at the 
following banks: 





f incorporated in the /republic of South Africa 1 

OFFER OF 2.5.161,413 SHARES 

The Board of Directors announces that, uf the 25.161.413 
shares offered, at a price of R3.05 pci share, io members 
registered on 26th May. 1978. Mibscripthms have been received 
for approximately 99.3 per cent. The balance of approximately 
U.7 per cent or ihe 25.161.413 shares offered will accordingly he 
subscribed for in terms uf ihe underwriting agreement. 

The offer closed on 23rd June 1D7S. Certificates in respect 
of shares subscribed will be posted la applicants on ur about 
14lh July 1978. 

June 27. 1978 


VUa are the v/hoHy-owned subsidiary In Luxembourg of 
Bad isc he Korn muriate Landesbank, a leading German 
bank headquartered in .-Mannheim. Our-fiimbanking 
services include dealing in the . . 

Money Market 
and foreign Exchange 

Our Euro-spedalisls have 
the proven ability 10 deal 
successfully in She money 
markets bo!h on an Inter- 
bank and institutional basts 
- and me skin to provide 
effective foreign exchange 
cover tor clients active 'in 
international trade. 
Complementing ourmcney 
markets and foreign ex- 
change . -operations, we 
manage or participate in 
fixed -interest cr. mil-over 
syndicated Eurwoans; and 

we trade in fixed-inierssl 
securities. ." 

To find out-more.aboOt our. 
Eurobanking services just, 
contad: " 

* DeK.IO^)pe-Meri£Qing 

Syndicaied Eurotoans;' 

• LOttqvianl-; . 
fJloney .matW and Foreign 
exchange dealing; ‘ 1 

• Dt-H. Braun - J, . 
_Security trading. ' ’ 



25c ed.Hojal • F.O.Scs 6Z5 -.Uttcmbourg-Wte -TaLyi75l44 
Tefetjhf«e:4753l5iDsal^- -. .:r , 

Tdcxi 1 791. l?9? '.De'aiersU7S3 fCreditel- v.:V.-Vr/' 

Financial limes Tuesday June 27 1978 

5 ° 


German Cartel Office AUSTR,AN 
ponders action over ! 


Viennese beer barons leave the stage 

VEBA-BP gas deal 


BERLIN. June 26. 

; completed merger nf the third of private capitalism 

BY LESLIE COUTT BERLIN June 26. ! and fourth largest. and the country where most 

- 'emergence of an aggressive, industries arc either uni 

THE WEST GERMAN Cartel tive of the Bunn Economies ' I’riwctmins newcomer, manage- or belnng in the tndusir 
Office is examining the DM SOOm Ministry noted that the Minister i monl in 0,6 industry is being mgs n f the large ban I 

($3&>ra> deal between Deutsche could approve of a prohibited rorctd 10 read to tougner the image of the - beer 

BP and the VEBA energy group merger if it was found to be in competition as sales stagnate. as the "super rich" 
to see whether it will take action the public interest. ! . . a Austria governed for i 

. against it. Since - mercer control " was i t s ‘^h’ 4 echater Brauerci. owned eight years by the bona 

Herr Wolfgang Kartle. presi- introduced’ in 1973 16 mergers :„ y of .Mau'ner- never reflected thei 

dent of the Cartel Office in have been prevented by the , arkhof beer barons, will d.s- financial position. 

U e &gta1d P ??^l r A-f^e U °to enw* of°Se e anUMraer*reMifa* *• V>y Nevertheless, the nc 

Deutsche ?P Surf'S! "5*** m ° ri! Sem iSS^wifh^thT’ 

share i n Ruhrgas. West more effective. ; ^ lf " Bra “ AO ? r Lmz SOcs f h h ^ h _ c 

Germany's largest natural gas in :<r . . . . . . through, while Gocsser and Markhois. is to be jdsg 

company ° thlrlLTn J^? n ‘ ^iningshaus have already com- Brau AG has made b 

irtho VariH Office nhiecL? to nu ' c J ne,i 11 lcadin 5 bined to fonn an enlarged even m the popular datl 

If the Cartel Omci objects to abrasives manufacturers and brewing concern in the province uuuimn. tnc two coinpai 
the deaL this agency of the West their executive* DM580.500 for ' slt-ria P already agreed ir. uier 

German Economics Ministry prive fixing agreements. 1 ’ holding companies 

would place itself in opposition The com ponies worked out a Ever since the lS40s. the affecting the indeuend 

WITH THE planned takeover uf mg as the patron of arts and merger, along with >iringeni was expected to be reduced to which -has an IS per cent holding breweries lighting over the rest 
Austria's uldest brewery, the .sport, has become the symbol rjtiunalisatinn like!;, in can*. a 25 per veni holding in exchange in Brau. Creditanstalt would of a shrinking market. But the 

in .i massive lay-offs uiii"nu the 1.300 fur Scbwuchaier'» total assets. have ci early preferred a merger recent emergence of a complete 
niajnr employees. Now. however. the final of the two companies — newcomer has now changed the 

Austria governed for the past olutfinfi non-a!c«'h«i!U.- sutoi- * s a mertf 13 per cent * he merger with Bniu AG. 

Already, he bus given 

gunpril notice that his cheap beer will 

S™ 5 ' . Ka nil <k^ i>m.nln. 

cLs to ihrisiinc , r . ..J *«ii euiai s«.u 7 • . , Rftppnth n ihi- Fitrr.nMin , * , **'» me i.icuiuuMdu. me sprcaa ni .supermarxeis. newcomer in s>anKt I'oetten is 

Welt their exe.-u f/r : h ™? ir> K concern in the province twocainpanie^ha.l European whlch in lurn a5>0 bus a 25 per discount and cut price stores, as likely tu be an increasing v 

nistA.- prke - " f St * vrta ' " Z.ZuZZ, * * 1 rilin'- . cent interest i D Goesser and well as the impact nf foreign dangerous competitor to the 

™ ■* a «rcLnientS. _ holding companies uitltuut When the idea u, tile merger Reinioghatis. These iwo merged competition council vvilh stafi- established coin sanies Thus thp 

minor Mirkhnf^' f- ' hc Reeling Ihe independence ;»f was first !n . ,9 . Sft - lhc this year and operate under the noting sales. have under- bowing out of the’ Maiitner- 
. "h!Sl ,hi hr-J«o !h n % , "■ Sreiriscbc Braun in- mined Schwechater s erstwhile Markhof dynasty, while certainlv 

dl.Iarv- d , S 1 w as offered a 38 per cent interest dustne AG. with a market share dominance in the Vienna arua. the most nublicised. is not 

Z- *•»« «f29.7 per wnl. At the same timtMhc mergers necessarily ihe most crucial 

V. . . , *nri cases iictvuen October i»«B maustry : ,na. uicreasmgly, the of ich.TUm <s4.7mt last year, in the Lmz cumpar-y. By the uf 2D.7 per cent xt 

Such a contlict of i merest ha * anrl November !!J74. The com- cultural scene in Vienna. Since the Sehvvechaler Board has’ had lime t»r the aciiial annount-«*- The nier-e’-; alsn invnive the iuiw 

STcSS ^ss-iSSmSi ^imnSUirsssr — ^ l hc ramib, '- acl - lu ge iho ,n ' s g hl aa *a sa a 

companies, including VEBA. in sen: 3M Deutschland: Verciniute . ______ 

customers' in West Germany. fabriken:' Slarclce: Carborundum i ImDrovement 3t Swedish M^tch control of go , d ° 

In the same year. Volkswagen. Werkc; Fcldrauhle; C. Kllagspor: UJUVI VUIVllt k/n VUlOIl IT JHtiVIl. v«ri!I “ i 

in which the government is a C F. Schroder; Rheinische BY WILUAM DULLFORCE STOCKHGF ti i..„ -k I ” 101113111 IB \ C 

large minority shareholder, wai Schmirgelwerkc; Norton; and wiluam puluorce June 2b. I — - - - ' -X 

charged with unjustified price Wantrieder Schmirgeiwerkc. 
rises but the CaHei Office sub- In the pasi ten years,, the 

nnounv**- The mergers also involve the pose a long-term threat in the 33 clement in tiic changing world, 
^soffer we.-i German Oetker concern small and medium-sized of Austrian brewerie.-. 



SWEDISH MATCH made very Kr 26m. which is Kr 2m lus.« than director. anDfj;u:.ed in April FrC'IICH 
uurclest pre-tax earnings of in 1977. The interim report dm.-s that the net effect would be eon- ; _ . *****j«j 

Kr 5m (BI.09m) In the first four not show any extraordinary siderahly better. The intentni^, B Y Chrtstine Moir I 

■tu 'Mils nf 1978 during which it items because “ ir is ton early report notes a further setback ! GO.VTROL OF Generate 

Saarland raising $75m 


riGliStrv Turkish credit stepped up 

BY METIN MUNIR ANKARA. June 26. \ ments within some product fields t ul ,OK j J1 . u*v «mr.. iiu- .um. pan ui »pe ... ol ' rears at 6 per cenL Price ha* a ti-hirnne 

il00m A to K S15iIni S tte^ven “S?” 1 .* 1 m T I. he m . ln ^ Turktrtx | havJ- nS b««^ roosiderabiy^orec ilMns 1 * 1 left' the °*srcmp Kr&m loss node in Uieton four jnid^ihiTt Pm'sivSMlllnis^a 555? wakin" t^fsec whether th Both domesl,c *» d {orei 

,y SJSLSL,^ h ‘ f »« . rf JssS£LS. , “ B,rof#f 00 ^ 

■group reported a zero result. itc-ms. These included income of I he group’s wnret headaches. *' Goldsmith sa 

Trie manaeenienl i* Uiekine in troitt lhfc Sd,€ ° r a - 9 P« r cen ' The ma ' n source ftf earnings ' . deferring 

• ib. forecast nf - «it«htlv inmro'ved s,ia re in W ilkinson Match among umiinued to be matches which investment by 
ioDcrutjSa rpsolu - for 1978 as a other holdings and even larger lurned in an operating income ..f : rhe Hong Kot 
Srr'U develop cosls t™™ the rcstruc- Kr S7m. The disposable lighters ; which Sir 

i ments Within some product fields lur,n K ,jf the group and the which now form part of the : shareholder. 

liiinnV | ! hi D fir« C mnnthf kron a devaluation. Together match division, ic-peated the Genera !e Occi 

nn expected I ' r in r<; ti before months of last year. ■ transfer of 

^ ' allocations and taxes. On April 30 the group held ' unfounded. 

The Kr 5tn pre-tax figure is It has been assumed that there liquid assels totalling Kr 620m 

. 'THE FIRST of two loug-a waited placing in.-utu nuns arc able to 
| state bond oiferinos was un- add a lax reallowance to iheir 
«-! veiled in Frankfurt yesterday initial yield and at DM 150m the 
despite the growing weakness of issue is a modest enough amount 
™ the domestic fixed interest for Die market to absorb. The in West Germany. bond is expected u» be fully 
The State or Saarland is to placed, but it ih clear that Lh"e 
. raise DM 150m i$75ra» over 10 issuing authorities are walking 
"•years at 6 per ccdl Price has a tightrope. 
a , been set at 9Si. Dealers are Both domestic and foreign in- 
re 2?^ wa Hfng to sec whether the vestment inflows into Frankfurt 
; State of Bavana will come for- have for the moment ground in 

f. ont r ive e d pay off since the SI50m is a drop m the struck as usual after cost- would lie further restructuring against Kr 452m on"’ December Cfonrlairl |Tl n ^f t .r nn 
Turkeys dents to foreign sup- ocean compared with -Turkey’s calculated depreciation and costs this year, although Mr. 31 and had available unused •JMJiQdru E.icCirlCi3 

a halt. The resurgence in the 
equity market is a disiracrion. 

n,Itl ?" ce j Scbeme ' H c ^ ,m,n ® noT, HWions the suppliers The Kr Sin pre-tax figure is It has been assumed that there liquid assels totalling Kr 620m -* , r ar .lL»«.? n« ‘2SK, offenn„ , halt. The resurgence in the 

Hf*. contrived to pay off since the SI50m is a drop m the struck as usual after cost- would lie further restructuring against Kr 452m on December Cfonrlarrl Flnnfpinn oi jrounu u.i -iauin. equity market is a disiracrion. 

itirkcys denis to foreign sup- ocean compared with Turkey’s calculated depreciation and costs this year, although Mr. 31 and had available unused ■ 3WJ, 0“ ra LlcCfnCa . The weakness of the German while seasonal demands un the 

fliers, banking sources told the overall debt. It is estimated that includes net interest costs of Gunar Dahlsten. the managing bank credits of Kr 345m. STANDARD Electrica. Spain's ! jWna market finally emerged money market — for tax and holi- 

.r m a octal Times here today. the debt for unpaid imports : largest electronic* company and|* nlot * ,e last week with the day purposes — have tightened 

The 50 per cent increase s i nc f February, 1977, totals tt- TT7" A Tit a a • "■ [ •■nntrolled by ITT. reports a 19 central bank forced to mount a liciuidiiv on :t dav-to-day basis. 

,.j- Fiiwn« LKAB reconstruction urged 


LKAB reconstruction urged 


STOCKHOLM. June 26. 

I uni'eri v.ranam vines trorn | cp ,ho Frem-h nnir nf British 

i Madrid. Of this. Pia 6.7bn|DM 180m of bonds, taking Us J , iJLi, u ft r 

; fSS3m i comprised exports which *bc-ch»y total u P to DM 560m. J ^vulJ u iv -T it Tssue bond ^ 
showed a 56 per cent rise. lar-'elV' So far in June the authorities JPprovdl Jui> -i to issue oonus 
1 1 accounted for bv a telephone ' havc ^ a(1 ,0 purchase over r,n J ,1C ‘ French or international 
! mL'I'. p e :DM ibn in the markeL markets and in one or more 

stages uo to a maximum of 

central b 
■iff past i 
loan, ovei 

. ' fit from the scheme nr vi-hirh. 

in Spanish equity- discount of three-quarters of a board to increase the company s 
semi-private tele- 1 point, while the 12-year tranche la i M . l . p 3 maximum 0 f 
noly. Cntnnani-j of the DM 1.5l#n Government rrrs6S6.ini. 
bn i im. which ha; loan raised in April slipped in The French unit nf Dunlop 
Standard supplied . 97.90 yesterday compared to an holdings. Dunlop SA. has received 
245ml worth of j issue price of par. shareholder approval in float up 

Telefonica last! The new Saarland bond offers to FFrs 5Pm of convertible honds 
if to over S5 peri a placing yield of 6J1 per cent un the French capital market, 
ales. ' which is substantially below the The bonds would be convertible 

ihe year were . market where 10 year bonds re- into shares on the basis or six 
irni. 'turn 6.' per cent on average. The shares per bond. 

t-erned there are certain doubts Ministry of Finance in ten days. 

Triumph increases profit 


ZURICH. June 26. 

Alfa Romeo losses total L98bn 

^ . •'* - 

. • MILAN, June 26. 

ALFA ROMEO plans to reduce Romeo reported a loss of 

sa ce 

h»wn -V — “ ■ ~ NI'JIIJI UI Cl n.-|ii v.«7iv* I'.nnrn f . » mu. unu itr.uiutu anva iviyutiM 

cern. rose hy 5 per cent last joughlv unchanged, while cash-! The 1977 loss figure includes debts of L99bn compared with 
vear to SwKr 7S0m l84J5nu. The flow ' improved -slightly lo,L48.7bn Tor the writing down of L77bn. 

• rouD which has 31 subsidiaries SwKr 1 5.4m. ; the state-controlled company’s Sales last year rose to 

Throughout the world also Triumph views the future i participation in Alfa Sud. the from LRl9bn. but production was 

report; -t further rise in profits. " with some optimism." althouph | car plant near Naples jointly litlle changed Trom 1976 due 10 

The European division, headed the hoped-for recovery of .owned with Alfa parent company strikes, 

hv the Berne cntnpanv Triumph markets has not taken place. Finmeccanica. For 1976. Alfa Reuter 


» 7// 

• /// 

J S>$ / Px 

03 Banque Bruxelles Lambert 

Main balance-sheet items 

at 31st March (BF billion) 


+ MU 
+ 11.8% 

J80.5 + 2J.I ’fc 

ILOiluJl + I7jl% 

006A + 15 h % 

]32.0 + 18.7 ^ 

lu .d u d.n s ’«! 7 

dSSls of bankers (including subsidtanes and p Jg0 + , f , , 

non-guaranteed rail money) 3 10.3(f) I24>t!|i2) + I7ji« 

Shareholders equitj 37 *^ 306A " + 15 V 

sector W* - 1 - 18 - 7 ' 


Development of activities 
and improvement in profitability 

Net dividend increased from BF 60 to BF 72 


- : -ntc financial year ending on Man* 1976 may be 

resumed as /oUow*: ^ ^ increarf in one year of Bl- . - 

SaSCS-ij T-,- SJS 

sSskws"-^ ,h " "Z 

r ^^og 0 c oi 

-Eorobond is»tj □ddiuons to 

Luxembourg, in Singapore. The setting up. with the Korea F.r- 
chanae Bank, of a joiaily-owned subsidiary company. Korea- 
Europc Assoaaied Finance Company (K.E.A.F ». in ihe context of 
the promotion of financial and commercial relauons between 

Europe and South Korea. , . , . 

♦ -tyhic ning of the links wnn the mulunational banling groups 
in which the bank Uusaoctated (Abecor. S.F.E. and S.FO.M.j 

♦ Development' of ibe bank's computer system, whose capacity 
has more than doubled in two years. 

» CO11 5M H aitcnlion 10 rigorous rtnnforccfncni 01 internal cciniroJ 

and management procedures. . . . . ... 

♦ Deceleration in ihe growth ol overhead costs and. ihu-.. 
consolidation of the progressive return 10 profitability begun in 

ProfiL before duties, taxes, depreciation and provisions, 
amounted to BF 2. 107.7 million as against BF L«92 4 million in 
1976-1977 After deduction of ftscal charges and amounts for 
depreciation and provisions, the financial .mr ekud ««h > net 
profil of BF 702.3 million compared with flf 59J million in 

The Annual General Meeting, which Uis held on 22nd June 
1070- a n proved payment to the 3.300.000 shares in lssuc before the 
, di.idend of BF 72. no or 

comSrtd »4«h BF 60 Tor fhc previous fmanaal year Thu- diodend 
ST^paid pro rata to Ihe 2.000.000 new shares dated bth Mav 


•I Ur rcaue^ Bank Brussels : L^nilwn (UK1 Lid. 

The sofiual >ei* ,r, s B ’^“ [ WnSn-talt London EC3P3EY 

... ■ 

'•"■v .•'■T' ■* ' 

■- - ‘ 


. . , jv ... . , 'V > :? 


is productive 

xmzp ■ ’ 

Financial Times Tuesa^^ 






groups plan 
to merge 


KUALA LUlIPUTi. June 26. 

bank raises 
stake in 
Haw Par 

Union Steel 

at faster nice 


By Yoko Shibata 

TOKYO. June 26. 

CROWN’ RADIO, a medium-sized 
audio equipment maker fisted on 
the Tokyo Stock Exchange, and 
Vybcrnui. 3 top- but unlisted. 

citizen band transceiver maker, 
plan to merge on an equal basis 
from October i. 

Crown and Cybernet are highly 
export-oriented companies. The 
mcryer is aimed at meeting liie 
effects of llic rise in ihe yurt m 
vlie foretell exchange. The com- 
panies believe at the same time 
that they can strengthen each 
oilier in " techniques- oftice 
management and manufacturing." 
It will be possible, they so. to 
develop and vary products by 
the combination of Crown's audio 
techniques and the eommunica- 
tions experience of Cybernet. 

The rise in (he yen left Crown 
with a deficit of YSOfim (S1.4m) 
for the fiscal year ended last 
month, and with Yl.SSbn of 
cumulative deficits al tbe end of 
the year. 

Industrial sources regard the 

(E AO is to sell 35 per cent of 
its Malaysian subsidiary, to 
Malaysians, to conform with the 
1 Government policy of allowing 
I Malaysians wider participation in 
! the country's corporate sector, 
j EAC said that it has received 
[approval from the Malaysian 
: Capital Issues Committee to sell 
1 21m one ringgit shares in East 
J Asiatic Company (Malaysia) at 
i ringgits per share. 

1 Oi the ‘Jim shares offered for 
sale. l5nt will be reserved for 
:. Malays, while the other Sui will 
be open to other Malaysians. 

1 EAC «uid that firm commitments 
have been received in respect of 
11.5m shares from Malay finan- 
cial institutions, and (he irmain- 
.ins P.5 m uncommitted share? 
would be managed by Pertanian 
Bwrinc Sanwa. the merchant 
hank which is Ihe adviser fo 
EAC in the reconstruction 
! scheme. 

East Asiatic Company 
; (Malaysia i was formed in 1978. 
: and has acquired from the 
! parent. Danish company, its plan- 

tations, the production and 
distribution of Duinex pharma- 
ceutical and nutritional products, 
and its general trading, including 
the assembly of Vespa scouters. 
The parent company retained its 
Interests in the Car tellers 
Brewery, and in shipping and 
forwarding, and the manufacture 
of shoes in Malaysia. 

In its prospectus. EAC 
i Malaysia) said it expects In 
make a pre-tax profit of 
19.5m ringgits for the current 
year, and that h should be able 
to pay a divide ad of 20 per cent 

On the sale price offer of 
1.6 rin&qit. the prospective groiS 
dividend yield is 12.5 p-jr cem. 
and Inc prospective price- 
earnings ratio, based on forecast 
nrp-iax profits. te 4.00. 

EAC ('mends to make 
occasional offers of -hares in 
EAC I Maiavyia) to Malaysians 
?f> that by 1990. 31 per cent of its 
Malaysian subsidiary would be 
held by Malaysians. 

*■ * 

Mitsubishi Corpnraiion has 
established a commodity trading 

company in Kuala Lumpur, in . 
partnership with i/.n .Malay firms. 
Wong Sulong write* from Kuala 

Mitsubishi own* 30 per cent of ' 
of ihe {.‘quilt of i!/c new com- 
pany. Sinar Beriian. while the ; 
remaining 70 per vjoi has been : 
taken up by Maha Perfcasa -tud 
linoian Developnii-m. Sinar: 
Reriian's authorised capital is 
400.000 ringgils of which "JU0.00Q; 
ringgits is paid up. 1 

The executive ■nicer or oi 
Sinar Beriian. Mr. Hideksvu, 
XagusO. who has 17 yea 7* 
experience tradin'; > n non- 

ferrous ineiuli with .Mii.-u bi-shi. 1 
said that the new cum pan;- has 
begun trading in mi. It would 
next bo dealing in steel, as. 
Malaysian oil co;ii:«anies are 
expected to require ’ ,:i‘iuU: Mtcl • 
products for their cuiplexes. 

Mitsubishi itself i< involved in 
lhc consinu-iion of (be USS lbn ; 
liquid natural gas plant in. 
Sarawak in parlncrsmP with the [ 
Malaysian oil com par.. . Peironas ■ 
and Shell. ' 

New markets lift Zim Israel 

By Ji. F. LEE 

SINGAPORE. June 26. 
Haw Par Brothers Inter- 
national has announced that 
Ihe United Overseas Bank 
(UOBl group— one Of Singa- 
pore's Big Four banks— -now 
owns 8m or its shares, equiva- 
lent to 7.5 per cent of Haw 
Par's issued capital. 

Haw Par also disclosed Ibat 
it has been Informed by 31r. 
IVee Ubo Yaw— chairman of 
UOB and a director of Haw 
Par— that Wee investments 
Pie. had acquired 560.000 Haw 
Par shares on June 15. Mr. 
Wee is a major shareholder 
of Wee investments. 

With the acquisition. Haw 
Par slated, Mr. Wee is deemed 
(o he interested in a total of 
8.5m shares in the company, 
or 8-5 per tent of its issued 

Mr. Wee and UOB are now 
Mined to be the second 
largest single group or Share- 
holders in Haw Par. the 
biggest being Charter Con- 
sol idaicd Investments. of the 
UK* which at the end of last 
year held I4.l25m shares, or 
LU.2 per cent. 

UNION STEEL Corporation tfre improved 
(USCO) — profits of witch ; foil; four 

IhTpb-ToTs 7e«; ,0 £**&'$* 

31— has reported improved ip the steel market before ^m 
i trading conditions for. the first' The local steel market, hf-Says, 
i four -months of the' current remains MflMUr 

! financial year. Profits we MU^taadAy ■^^£^■538 

'ahead of the curable 

• figures.' The chairman, Dr: .M-lindices. But ia. social stews, 
i D. Marais, told sbarehoIdersk^Jh'ere has beenji 
Ith’p annual meetinz "that . net- restocking among . ,mercxMUts. 


Ithe annual meeting . J that . nct^-restocking among . ,mercii^is. 
‘profit over the period was up The' group sother ^^resls T cas& 
ifrom RO.lm in the previous jreax-'iBgs, copper , -jHfl&tton-vMw 
'to R1.3m (SI .5m I. mainly because. aluminium epnohetor producHo-H, 
‘of higher profits in the ‘steel divi- remain depressed 
: sion. . - The shares at .3&'cems, jMiJd 

; Over the year to December -31^. 8.3. per cent Od -iast year’s- ;re-_ 
USCO’s attributable profit was. ;.duced dividend-^ T^erK;is: Tip 



7HI«~ 1} y Afi \ 3F T7? 

V?isx 0ja?i>itSiig. 

6 ( : ffKS ffiSgBU YearTb 

— ^ — r __ 

3eJatest‘;^jr%^\gii?en : lr 

.fidtuaw^-SKpita' tr 
tKe ■ Mitb^an: ■ gzbyp 

absorbing RS.6m out of last year’s/I ndustria I Corpor^ion -i AMIG) 

' RS.Sm trading profit. Despite .bolding 13 pef .-cefitj. 

; ‘ _ .. 'ont' aa 

| Modest gain at Russell 


I J OH ANNESBU RG, ifila£- 2i' 

RUSSELL HOLDINGS, the maltt^this is a premium xating^jefiect 
i South African specialist retailer ring Russell's Telative 'Jmtdupity 

ISewbi^tna:, polnS- .oaf V&a 
jBanK'Sf tb>VfrrPuPs.aetivi'tiei 
ard- WBSOttC-'wdffi- theise<toar 
oi r thd: ; ypar hang; thi 
BHjire ^pdrtaB^-4TaWea^;ii 
s&si * ifyfimgpd ai-^Qiei •• firy 

initiative for the merger as | 

having been taken by Cyberm-L BY L. DANIEL 

which bad been seeking lbe! XEX PROFITS at Zim Israel 

Israel Zim's operations brought the 6. 

opportunity to become listed on • Xavigadon company ro^e by 10 Israeli Treasury <I0Om in "foreign owned or chartered from Israeli 
the second section of (he stock f per Ct . n t in 1977 to S4in. Turn- currency, he said. companies, together with 35 

TEL AVIV. June 26. 

ships, totalling IJJm dwt. 

exchange, but dropped the plan ; ovcr B i s0 increased 10 per cent The jompanv expects to com- 

with the fading of the transceiver j lo J4ss m . . . modernisation oro- 

1,^ nar nm^ncp i tu. n -, n .. k..,L. P ieiB ,ls moaern.sailou pro- 

boom. Its business performance I The company hopes to break £' l mme bv th'’ t-nd'of tbe tear 
has been deteriorating. J ir. »h »M irr»nt >-«r in <mi» =■ — . • • *- 

companies, together with 35 
chartered foreign vessels with an' 
aggregate 200.000 dwi. ? 

Sime Darby 
unit's sale 

even in the current year in spile f t so u Q (f R1J{ old vessels* last 

* -k + 

Am pal- American Israel Cor^; 

The Tokjo Stock Exchange isiOf heavy loses arising from the S p r j ng an( j sf ju has six new poration, the American invesl- 

likely to examine the merger 
particularly closely since 

The dividend for 1977 is un 
changed at 15 per cent. 

of Israeli Fertiliser, and citrus scope of its future operations.] 
and other farm produce exports. Mr. Jacob Levinson, chairman. 

parmrujaiip viuoci- Oiutc . „ 7{ m .u. -nf.nfn-'e “ u, -‘ L.eviosun. umuiuju. 

Cybernet is larger than Crown in I r 1 ™ r " l • F Bui the company has decided not states in the annual report, our 

terms of sales network and j TSmS#,? tasr rear t0 order Bn ei shlh container Financial Staff write:. Ampal is 

employees. Sn w^r cent i SepSented ship for its world-wide container paying a dividend of SM per 

Tbe company arising from the (iradehetw-een foreign C ports. At «" S!S«2 

merger, to be called Crown- SHami ti^e, th*e Sony's S£\ 

Cvbernet. will have a capital of ! share in SiT i^on^ports R P " ? n 

Yl-Sbn. The president will be 'through Israeli pons declined by ‘) K • from * r 10 Pf r cent dhudend, 

Mr Kamki Tnr.innn. t.f CvbemeL n^r cent. Thp enmnanv has . A bli.h extends from tU til? holders Of Alllpti S Class. 

Swiss bank to 
open in Tokyo 

■in freight carried between “ ,ac * loans. ;u ana made ;m esimerus | 

I foreign ports. The company bod This container service is Ziui’s in Israeli enterprises from' 

benefited from “ entering new most profitable operation and sources in the United States and j 

I markets, especially in developing was hit hardest by the seamen’s Israel and in amount of | 

countries." Mr. Y\ Rotem. said, strike. Zim currently operates SIS3.000.000. 

Sime Darby Western Inter- 
national BT, a wholly-owned 
subsidiary nr Sirac Darby 
Holdings, bos sold for cash 
its 40 per cent minority 
interest in the Belgian manu- 
facturing engineering com- 
pany. Construe tie Werkhuizen. 
Yandekerckhove (VDK), oar 
financial staff writes. 

The shares were sold 
through Madenco. the majority 
shareholder In VDK, to UCO, 
a Belgian textile manufae- 
lurer. Sime Darby acquired 
its shareholding in late 1973 
for the equivalent of Malaysian 
52 2m and the sale price to 
UCO Is the equivalent of 
MS2.3m (almost U.S-Slm). 

This divestment is consistent 
with Sime Darby's policy to 
concentrate on those areas oF 
business which are more 
closely related to its tradi- 
tional skllL* and experience. 

of furniture and househoid_tp the leogihXv^cessiOi^r; 

I appliances, maintained' profit-' -." 

i ability io the year to April 30:^ . .... 

I un a modest rise in turnover and : Listing the ordinary- and^HiS 

J held its total dividend for Ifife.: per cent preference share^ of 
! year ar 10 cents a share. tlie Trust Bank-af. Afnca on-- tjie 

At tiie group's 200 stores, sates;- London Stock Exchange Was been 
rose from Rl09m to Rllfinr cancelled at . thp: -’s 
(S136tn) and pre-tax prdfit' request, the: Stock. Excfafimge'.saLitiL 
| improved RQ.2m to Rl'iSniliteuter reported £5)nddn4T}he 
(S14.7m). After provisions for - market capitaMsatioi -and .ahae j 
.normal and deferred tax, net boMrag position :fs -such that- m : 
’attributable income was also adecfbatemarket.intih’psecufitl^ 
! ROJlm to the good at R7.2m to cannot be. majntdlnCd^ - Deaiinss 
make earnings o£ 40 cents a are still permitted 1 -imaer. the 
i share. . rule which aHo\re trai^^ 

! The shares yield S per cent at London in ,any shares traded^on 
j 125 cents and in sector terms, . a foreign stock exchange 


Plan for NZ semities control 


malting; rertaittiptb.visioii3.'anc 
extrabididacy" ^ctiar'ges. *;v" Ir 
adfirednirStrhaS ? no>v Heoitm 
apparent. ;that' prpvtsimis: ,-wlL 
have to \be^made' A>r the tmte- 
down of. stock -and= for warranty 
■<dste£..he > itySi?;-.' '* r > : i . 
e/ : -Mafhesoa - is'‘ ^ering- 
A ib casS foreach'-of the 
4.^flnr .v. Jardine -. -- Industries 1 
share^Vit;- doea . not L own. The 
scheme' Of~ arrangement-; -in-: 
AioIved.-'-'tov become . effective^- 
meffit^ie-appreved by holders 
of ^at "least 7Srper', cent- of the 
dvtt&def shasgs. -Suiy ect to the 
-"pasasge-^.or -a solution -at an 
l *xttabrdinary general meeting 
pa. July 21,’ and to obtaining 
court approval, -'the .scheme 

will become . effective 


.wtii i become,;.- effective on 

. . . Atlgufet -li",-* ;'[•.•• •••.• • 

(THE New -Zealand Government number of submissions. ■ from {As '"reported ^ at -toe- time, of the 
< i s to establish a Securities Com-, interested parties rrecomm ended r / 1977 annual rebort ' Jardine 
.mission to supervise the'g 1 * setting up of a Securities 

securities industry. .... . commission, which will be 

Last year, the Govcrnineiit established later - this year, will 
introduced into Parliament ; a have the. power to cancel com-. 

{Securities Advertisement BJtt to pany prospectuses and Will keep 
{introduce a measure oF control, a check . on claims made ; In. 

!over financial advertising, f* A. ‘financial advertising. .• , . 

1977 ..annual report ' Jardine 
Industries’ v, troubles stem 
mainly From." loss/es incurred 
by its Concept 2000 group of 
subsidiaries,' "w^iifch moved into 
the' Manufacture of, radios, 
telievisfcrn. " games' and other 
consumer electronics for sale 
in the U.S. ,: ‘ 'V : 

By John Wicks 

ZURICH. June 26. 


1 Al. an Ausiralln Si pc 10S3 5»-{ 

by spe issr .«;> 

Vniiralij i‘p. - Mi ... .. «; 


i nter nat ion a I iy-act ive 

in the Far East. 

Ministry of Finance. 

Australian St S. 9’.Pi- W 

Pan Jays Rdiik S' pc 1 M2... 





J.flcficlm Pipe 19.-S 


Offer n:i. r.r. j pc ism . 



Bou-atur 1992 






P.i 1 

Can. X. Railway Sim.- f^Su 



■Midland Im. Pin. Sine 92 



^kind tiisVUda Opc 1991.. 



Cn-dli Xatiufial Jlpv I9Sti.. 

3.1 i 


N'a.-JpnjJ Coal B/l. $p-r m 7 

91 ! 


say *pc in?. 

92 : 

Duntturk S’, pc 1»H 

ECS 9pc 1993 



National Wstnwr. ape ■*« 



S-vd.,n . K dA|r. • S-.pc 1957 


gi - - 


Xad. VVsnnnsir. Sue 'B' 



L'nucd E'scuils 9pc 1959 .. 



Ki'S S'PC 1997 

EIB 8Spc IDSL - 

FJ.ll U’.PC I9f« 







XcvloimtnantJ Sue 19S9 
Nordic Inv. 8k. Slpo I9SS 
Norfe-s Kom. Hk. ?;pc 1982 







Vuho Sac 19S7 ilarcb 




.XriviNpn i.pc :°*9 


J.'orofpc S’.pc iSSfl 



Amiraila 7.'p-.- 1954 ...._ 



p.i : 

E«*> ?oc 195*. X.,i 

93 i 


Norsk Hrdrn SJpc 1992 ... 



Evil c.<n)dj : "?■. :vt ... . 


ilt. LaVes Pap :• -t'.pt- 1SS4 



Oslo 9pc 19SS 



Br. Columbia Byd. 7,nc - W 

01 7 


Ham>.rstey ?>. i »2 



Pons Aatonoiucs 9pc 1991 



I.'an. P-c. 9,'ac iP.-i 



Hr lira Qut-I)-. 9pc ’992 .. 



Ftov. (.‘U-.b- 9pc 102)5 

92 r 


Oov Chcmicai Sac 19 -i ... 



i*:i i9»7 



Prjv Saskaicb'-in. i • |i'.- "; ; S 



FCS 7.n._ IPS.’ 



ISE Canada 19>? . . 

19: '• 


R^i rt Inu-rnaiLOnaJ 9pc I9 n7 



ECS :.?c IP.') 



’lac nifl Ian i*D-> W. 



RUJ.f ftps 1392 



EEC 7 pc 1952 



Mavcy FcRjii'on 9! Pc PI 



Selection Tnia: ‘ ck 1W9 . 



EEC ;:w 1254 



nn--j <r.ui'i!!t Si pc iflw .. 
L'oia*- men TIrw iss: 

Kiicbnma Spc ISXt 

Micltrllii fine IMS 

Montreal Urban s-;pc IWI 
Xck- Brunswick Sac 19S4 .. 

Bruns Pror s:nc "S3 
Xcw Zealand S^pc l»S« . . 
VOMI-: fnv. Effc. 7inr IRM 

7h»an/Tooncefn8nr appeare as a matterof record only : : . ' ’ - .i : ■ -i . ... 

Xnrsfc HiMro 7’p.; IW‘ ... 
Konray 7tpe . 
Oil*™ HWro Sou 1937 ... 
Shibw S?pc *0**7 
s. of Scot. Elec. ?in« usi 
'K’domi 7;m* i.«s 
**■••■41 ill Sratc Co. 7tpe 'OT 

Trim..* fl’oc 1?“^ 

T»nn«cp 71pc IWii ?faj . 
Volksw agen 7'.nc 195? . . 


. S“, 



Allied Bri-ii--.Tl.-s lOJp.- -?n 

C>»l-»rp nip, 1 * 13.1 

[ Court h lifts 9 '.dc I9S9 

FCS 9’ pc 

1 fill? S ■>. iwr 

FIR 9lrv ;9»i 

K.nani-.* fur Ind. 9 n- W7 
f tnan.-i- for InJ tOpc rssj 

F:-rti» 1-j f.c I9S7 

rieweintr IIik 10SS 

fVA ("pc 19JS 

Ravnuvc 10 : dc 1WS 

*-?ars 1"‘ Do ID«? 

Total Mil 9. pc 1931 

acting by and though the ' •• - -.7 '. •. l -- -i , . 7 . ; 





Aslan D-r. F4HL 3! Pc I9JS 

R.vnr 6 nc -.9V. 

Canada lipc lfisr. 

Den \on*c Id. Bk. fipe "Oil 
Dpuis. h- Bank lipc 1933 . 

ECs .i.pc ivn 

kip. :.'.pc lVjn 

Flf A<i'iiia:nc 31 pc 19SS . 

F.urjTnnt ;< :pc 7°S7 

Finland .'Jpr I9ST> 

Forsntnrks j;nc 1990 .. ... 
ifiti-o Cue I9>"! 

vora-fin 3:pe HK9 

SoT-way I'ai- t!K1 

Viin-.-j;- Un*- I3'. f 

rK Ra »V.;n 3 .pc lOW 

Pniv. Ou-'h'— 'In'- IWd . ... "'|i.. isjg 

I Spain ilpc I9if 

Tranrihi-lm .'.".pc 145^ 

T\'M Ph'vur Co. Hoc 19SS .. 
Vrn.'rui ls sp. IDAS . 

! WorM i'.p.- 1930 

buyer credit ... _ ■ 
guaranteed by EC.G.D. . 

and provided by 

> Lmh-i 
■sRuic. I. 
la-!r?i- j- 


A Member of the Uoyds Bank Group ... . 

U.S. $15,000,000 


FLOATING BATE NOTES »f Tnl^n 1934 ^l[h. 

HI i’E in - ) 9*W! 

RNP 19s: S I ; . pj- 

HOF W*nn« !•*$ Ope . 

. i’[ »*i« «:p.- 

i . *;mi in-) Ann, pl- 




.‘*W7Sr. v 


Jf -p: 

>.ouru' Wlir- Wi JO 






citibank:, n.a. 











MAT 19, 107* 

This announccmcnl apjscjrs as a matter of record only. ( 




(Hidroelectrica Iberica Iberduero, S.A.) 

9Vi% Senior Dollar Notes due 1993 

'be undersigned arranged tbe direct placement of ihe above Rotes 
ii hb imiilhihom! investors in tbe United States. 

Smith Barney, Harris Upham & Co. 


Banco de Vizcaya 

Banco de Bilfeio ., 

v^>Tr * 

?>-:s &:' ; , - 



v^^fegaL^imes Tuesday j,,-. 27 1978 

U>!))\ 1 


'Vffjc. , 

EEC in talks for world 
pact on dairy trade 


PROPOSALS • FOR an inter- 
nation®* framework agreement 
»p,'tnae .'in' dairy products, in- 
eiudtng a, bilateral agreement on 
EEC imports of New Zealand 
cbeddar cheese will be discussed 
here tomorrow. 

„ -.lir. -Brian Talboys. the New 
Z^snd Deputy Prime Minister 
witt he bolding discussions with 
Mr. -Finn Gundelach, the EEC 
Agriculture Commissioner, 
jir. Gundelach is understood to 
.. ^ace discussed the proposals with 
Kir. Rohert Strauss. President 
Carter’s special trade negotia- 
torr in Geneva today. 

.'jrhe framework agreement 
wouta include general provisions 
■ ftr the 1 exchange of information 
on production and marketing of 
dairy products between the EEC 
New Zealand, the U.S.. and 
possibly other countries. 

"It could also include an agree- 
.jnent on -miLk powder prices and 
the bilateral agreement on 

'Opposition to the latter is 
. <expected from Ireland, which 
■fears that reopening the UK 
^farket to New Zealand Cheddar 
"giay cut Irish cheese exports to 
^Britain. Mr. Jim Gibbons, the 
Irish Agriculture Minister, made 
J.his clear during last week's farm 
council in Luxembourg. 

- The Irish export about 40.000 
tonnes of Cheddar a vear to 

.Britain, where New Zealand — 
which five years ago was 
shipping 60,000 tonnes a year to 
the UK — now has no guaranteed 


- Th^ J <New Zealanders are 
seeking guaranteed access for 
15.000 tonnes which the British, 
who consume 220,000 tonnes of 
Cheddar a year, say would be 
easily absorbed without harm to 

Irish exports. 

«irt°^ vcr - Mr - Gundelach has 
concessions on cheese 
i Wou ^ have to be 
r.«*L lpro . ca Th «s generally 
S^JriV 8 ! 001 * to ‘"can that the New 
if eet their quotas 

“ EE ,C can get increased 
access to the U.S. market for its 
own dairy products. 

^«!w° WC v er ' Jani b and mutton, 
rawer than cheese. aTe expected 
to dominate Mr. Talboys’ talks 
with Mr. Gundelach, as they did 
nis meeting with Mr. Roy 
Jenkins, the Commission Presid- 
ent, here today. 

Despite repeated assurances 
from the Commission that its 
proposed regime for sheepmeat 
* 1 ESU n any way affect access 
to EEC markets, the New 
Zealanders are still worried that 

BRUSSELS, June 26. 

(he proposals may be changed in 
passing through the Council of 

The Commission Is clearly 
irritated by the increasingly 
successful New Zealand publicity 
campaign within the UK in 
recent months which it believes 
has built up public hostility to 
the proposed regime. 

ir UK retail prices for lamb 
and mutton increase after its 
introduction, it will be because 
of higher UK exports to France, 
Commission sources said today. 

Since the French demand is 
mainly for very high quality lean 
lamb, the scope for expansion of 
UK exports is limited in the 
short term, and in the long term 
could increase export possi- 
bilities to the UK for New 
Zealand, they added. 

Farm support cost 


Agricultural Produce last year 
spent £312. 3m of UK Treasury 
and European Community money j 
on supporting the UK farm 

It also collected £71 .lm in 
levies and a further £20.1m from 
the sale of cold store stocks of 
butter, beef and other com- 

The UK’s share of spending 
was lower than in 1976— £85.5m 
compared with £92.5m— mainly 
because the bulk of the cost of 
subsidies paid on butter was 
taken over by the EEC farm : 
fund. i 

Most of this went on buying 

in surplus dairy produce. Almost 
£43m — twice as much as in 1976 
— was spent to buy unwanted 
skimmed milk powder. Spending 
on surplus butter also increased 
by the same prcuortton to 

There was less need for sup- 
port in the beef market and the 
cost of both support buying and 
deficiency payments was greatly 

Bill for the general butter 
subsidy, mostly taken over by 
the EEC, cost £14m, compared 
with £67m in 1976. 

During the year a total of 
32.508 tonnes of fish were with- 
drawn from the market All but 
a tiny fraction was mackerel. 

Rise for Polish stock farmers 


‘THE POLISH authorities have 
/raised the prices paid to meat 
» producers in an attempt to boost 
production after a slowdown in 
.recent months. Beef producers 

- will get another 16 per cent and 

- rpork producers another 9 per 

Meat deliveries and prices are 

T -~* — — . -one of the . most important fac- 

. s tors which determine the mood 
icf the .population and the issue 
.has brought factory stoppages 
and demonstrations twice since 

Consumer prices for meat 
_ _ 1 - £ have not been changed since 

ion?*? i96? - 

S V* i : * v l ' • Feed shortages and rising 
costs have hit fanners hard in 
? • the past year. Potatoes are cost- 

»•** /‘‘v ***£*'• in k 60 per cent more than last 

f f&J {L/i JCwf! in some areas as .a result 

*of* wet weather at harvest time. 
\ . It is estimated that today's 

decision will put around 65bn 
zloty (£106m) extra into the 
farmers' pockets this year. and 
their income next year wilTrise 
by ZL 14.5bn. 

It also means that the 74 per 
cent subsidy paid by the state 
towards consumer meat prices 
will rise to 83 per cent" 
Voices in Government circles 
have been raised warning about 
the inflationary effects of. such 
a decision and arguing that the 
fragmented structure of the 
farming system is at the root 
of tbe problem rather than, lqw 

Meat production in Poland is 
to a significant extent based ..on 
smallholders who keep one - or 
two animals and who need large 
price increases to stimulate 
production. ' ‘ • 

Larger farms. It is argued. 

WARSAW, June 26. 

would be less susceptible to 
temporary fluctuations in produc- 
tion costs and smaller price 
increases would be effective in 
securing production growth. 

Moves to raise consumer meat 
prices were also revealed today 
by the rural party daily Dziennik 

According to the daily, around 
300,000 tons of better-quality 
meat out of the total annual 
amount of 1.6m tons sold to 
Polish consumers will be sold 
in "commercial" shops and 
deiicatessens where prices are 
up to 100 per cent higher than 
in normal meat shops. 

The shift of the better-quality 
meat to the more expensive 
shops leaving the lower-quality 
^ the oJd prices will be 
dbnd; the daily Says, “ slowly and 
with care.” . i 

Egg farms 
heed glut 

By Our Commodities Staff 
THE DANGEROUS expansion of 
British egg production appears to 
have stopped. In April plaeings 
or layer chicks in egg batteries 
fell 1 per cent below the figure 
recorded in April last year. 

In the first three months of, 
1978 plaeings were 5 per cent! 
more than during the comparable 
period of 1977. This surge 
followed increases during the 
second half of last year averag- 
ing 3 per cent above plaeings 
in 1976. 

Until April, farmers appeared 
to be ignoring repeated warnings 
from the Eggs Authority about 


Producers are now feeling the 
impact of their earlier expansion. 
Egg prices are low and some 
Farmers are reported to be 
losing 12p on every dozen sold. 

Plaeings in the EEC as a 
whole were 2 per cent down 
between January and the begin- 
ning of April following six 
months when plaeings were 7 per 
cent higher than a year earlier. 

Plaeings in Belgium fell 4 per 
cent, France 5 per cent, and 
there was a reduction in both 
Italy and West Germany of 6 per 
cent. In Holland, however, expan- 
sion continued. 

Zaire copper 

KINSHASA, June 26. 
ZAIRE'S COPPER production 
this year is likely to reach about 

380.000 tonnes, compared with 
nearly 460.000 tonnes in 1977 
and the 525,000 tonnes originally 
projected for 1978, sources close 
to the mining industry told 
Reuter today. 

Output in Kolwezi — main 
target of the rebel invasion — 

I seemed to be down to about 
one-fifth. Elsewhere in Shaba 
Province production continued 
closer to normal. 

Kotwezi production v/as run- 
ning at about an annual rate of 

130.000 tonnes of concentrate 
and mine crews were using ore 
stockpiled before the invasion. 
Normal concentrate production 
is about 650,000 tonnes. 

The sources said at present 
skilled technical personnel were 
limited to eight Zairean 
engineers and about a dozen 
expatriates who are being flown 
in regularly from Lubumbashi, 
tbe provincial capital 200 miles 
east of Kolwezi 

Quality tea sale 

By Our Commodities Staff 
THE AVERAGE price of quality 
grade tea sold at the weekly 
London Tea auctions yesterday 
fell 3p to 132p a kilo. Medium 
quality fetched 124p— down lp— 
and plain grades were unchanged 
at 80p a kilo. 


Imports squeeze UK mills 


turers have warned the Govern- 
ment that if imports continue to 
rake their present share of the 
UK market some mills will be 
forced la close. The loss of jobs 
in the industry itself would be 
relatively small but as the effect 
worked back to transport and 
forestry workers and ancillary 
service trades the number would 

The British Industry is 
probably in a position to raise 
a clamour which is dispropor- 
tionate to its size for at least two 
of tbe mills are in politically 
sensitive areas. The Government 
majority in the constituency at 
Cowic. where the Caberboard 
mill is situated, is in the low 
hundreds and the Weyroc Hexaca 
factory is in an area of high 

In a written answer to a Par- 
liamentary question last month, 
ihe Prime Minister said the 
Department of industry was con- 
sidering assistance for Hexam 
under the Industry Act. 

Certainly trade statistics give 
point to the plight of the British 
jndusrry. In the first quarter 
of this year imports rose by 18 
per cent compared with the first 
quarter of 1977. The production 
from British mills dropped by 
25 per cent 

Chipboard production in this 

country has always been vulner- 
able to tbe peaks and troughs in 
the demand from its two main 
customer industries— construc- 
tion and furniture manufacture 
— and is really viable only at 
times of strong demand. 

Since the war a number of 
mills have closed or have been 
acquired by one of the larger 
units and subsequently run 
down. The present crisis, which 
in varying degree of severity 
applies .to the whole of the in- 
dustry in Western Europe, is the 
direct result of production 
capacity in Europe being far in 
excess of demand for the pasr 
four years. 

Recognising the trend early 
this year, British producers 
lodged a dumping complaint 
against the Swedish and Spanish 
exporting mills with the EEC 
commercial division in Brussels. 
Following a meeting early in 
February these countries agreed 
minimum prices at which they 
would ship their board into this 
country for the next 12 months. 

It is significant that the statis- 
tics for the first quarter show it 
was Belgium, a member of the 
EEC against whom no dumping 
action can be taken, was our prin- 
cipal supplier, some way behind 
was Sweden, then Finland, with 
Spain in fourth place. 

With minimum prices estab- 
lished from two directions, the 

British mills hoped that their 
trade would as least stabilise or 
even improve, but this has not 
happened and the April figures 
show a continuing decline and an 
increase in supplies from Fin-IamL 

There is some evidence that 
tbe attitude oF the EEC Commis- 
sioners towards the British pro- 
ducers Is hardening. At the 
February meeting, the Swedish 
producers had to agree to limit 
the fulfilment of their future UK 
contracts at the old lower prices 
so that a number of contracts 
had to be renegotiated at the 
higher minimum prices. 

The Finnish producers were the 
next (o be taken to Brussels and 
accused of dumping by the 
British mills; again minimum 
prices were agreed, but the Finns 
were allowed to fulfil their out- 
standing contracts on the original 

The British mills then com- 
plained that some Swedish pro- 
ducers were not abiding by the 
February agreement. But after 
another investigation, Brussels 
found that this complaint failed. 

In a series of meetings between 
the Department of Industry and 
the importing trade the Govern- 
ment appears to lake the some- 
what naive view that the 
importers who are also distribu- 
tors of home-produced board, 
should first fill the British mills 
with orders to the full extent 

of their capacity (about 40 per 
cent of our total requirements) 
and only import the balance. This 
ignores entirely the complexities 
of quality, specification and ser- 

Some home mills do not pro- 
duce the sizes demanded by the 
furniture trade. Where further 
overlaying with melamine, pvc, 
real wood veneer or other finishes 
is required, special qualities in 
the surface of tbe chipboard are 
demanded and again some UK 
brands are not acceptable. This 
cuts them off from much of the 
cabinet furniture and kitchen 
unit end uses. 

Over the yeans many furni- 
ture factories h3ve established 
their production on imported 
brands whose qualities they 
appreciate and trust. They see 
no reason to change. 

The importers and distributors 
maintain that they do not dis- 
criminate against the British 
production and if the sizes, 
qualities and service demanded 
by the end-user industries were 
all available in the British pro- 
duct at the right price then it 
would sell. 

Id tbe present state of demand 
it is difficult to see the British 
chipboard industry remaining 
intact at its present strength— 
either there will have to be one 
or two mill closures or Ibe 
Government will have to step.. in 
with aid. 

Feed companies losel Coffee smugglers hit 

their EEC lead 

Uganda exports 


THE BRITISH animal feed 
manufacturing industry is the 
Cinderella of ihe Common 
Market. Its output and labour 
records compare badly with 
those oF companies elsewhere 
in the EEC, a market survey 
published by Jordan Dataquest 

British compounding, bigger 
than any other EEC country’s 
feed industry in 1970. produc- 
ing 22 per cent of total EEC 
output, has now been overtaken 
by West Germany, France and 

The survey notes that the 
number of compounders in 
Britain is declining. Livestock 
numbers in Ihe UK are 
also falling. Wages, on the 
other hand, have Increased 
“markedly,” and staffing levels 
have risen. 

Between 1970 and 1976, total 
production of compound feeds 
in West Germany, for example, 
climbed 35 per cent to I3m 
tonnes a year. This gave West 
Germany's Industry a 20.3 per 


NAIROBI, June 26. 

cent share of total Community 

In France, the relative in- 
crease was even more startling 
— np 61 per cent. In Holland, 
too, production rose 44 per cent 
to 11.39m tonnes. 

In the UK. output increased 
only 3.2 per cent to 11.35m 
tonnes, giving Britain's com- 
panies 17.6 per cent of overall 
Common Market production. 

The survey points out that 
part of the loss of ground can 
be attributed to the technical 
and structural superiority of 
the British feed industry in 
the 1960s. 

In spite of the contraction, 
the number of - jobs In the 
industry has Increased from 
30.100 in 1973 to 31.100 during 

• The International Wheat 
Couneii has increased its first 
estimates of world wheat out- 
put this year to between 400m 
and 410m tonnes, compared 
with an earlier forecast of 
395m to 405m tonnes. 

OUT OF 12,600 tonnes of Arabics 
coffee produced last year in 
Uganda, only 2,600 tonnes were 
officially exported. “It is pre- 
sumed that an estimated 10,000 
tonnes of arabica was smuggled 
out of Uganda into neighbouring 
countries,’’ said Brig. Moses Ali, 
Uganda's Finance Minister, 
presenting his budget over the 

Uganda's economy recovered 
last year due to the high prices 
for its coffee exports, said Brig. 
Ali. Coffee production in the 
1976/1977 crop year, which ended 
on September 30, increased from 
137,000 tonnes to 156.000 tonnes. 
Of this robusta coffee accounted 
for 123,000 tonnes. 

Cotton production declined 
from 133.400 bales in the pre- 
vious year to 74.300 bales in 
1976/77. Production of tea, 
tobacco and sugar also fell. 

“Management problems" were 
blamed for the decreased output 
of the manufacturing sector. 

Due to the high world prices 

for coffee Uganda's exports had 
risen by 65 per cent over the 
previous year. The gross 
domestic product rose by 1.5 per 
cent, but prices had gone up due 
to “unscruplous businessmen and 
women who took advantage of a 
difficult situation to charge very 
high prices." 

In London meanwhile, Mr. 
George Ford, chairman of tbe 
International Coffee Organisa- 
tion, said there may be a return 
to a more normal world coffee 
economy if there is no serious 
frost in Brazil this July and if 
there are no other major 
disasters in other producing 

Mr. Ford said between now and 
September, 1978 the coffee pro- 
ducing and importing countries 
are due to review, and maybe 
revise, the international coffee 
market price which, when 
reached, would trigger off the 
introduction of export quotas in 
coffee producing countries. The 
present level of the trigger price 
Is only 77.46 cents per lb. 


BASE METALS cop P «j HL"1 n&siZ itr JSrSTVsSiJrafji 

COPPER — Slightly Firmer in subdued 
trading on me London Metal Exchange. 
■After dipping to £717 Initially owing to 
Short selling ,on the pre-market forward 
turtaJ rallied Vo 1720 following the large 
.tan In warehouse slocks. Ia the afternoon 
the prire edged higher In oulet tr ailin g 
to touch £723’ prior lo closing at £723.5 
00 the late kerb. Turnover 8.250 tonnes. 
• Amalgamated Metal Trading reported 
that to the morning three months wlre- 
•bars traded at 1721. 22. 21, 21 -5. M. 20.5. 
•Ml Cathodes, cash MW. 0S.5, three months 
£715.5. Kerb; Wlrebara, three months 
£720, 28.5, 2U 21.5. 2L A/ternoon: Wire- 


".m. H" 
Official — 

p.m. t+or 
Cunffieinl — 

£ £ 



Ush..— J 




i mraiths.. 

7BO-.B —1 


+ 3 

700 j— 1.8 




695.5 6 '—1.5 


+ 3 

5 months.. 

715.M— 1 



696 -1.5 



_ . — . i 


bars. three months £723. 23.5. 24. 23.5. 23. 
Kerb: Wirebar*. cash £703. three months 
£723.5. 23, 32 , 21.5, 23. 22.5. 

XG. Index Limited 01-351 34*6. September Cocoa 1791-1802 

,29 Lamont Road, London SW10 OHS. ■ 

1. Tax-free trading on commodity futures. 
r ‘ 2. The commodity futures market for the smaller Investor. 



through julv. — 

attHFIfeP* OLD “STSsreS 
9.3 P-5.3D. Thurs. until 7 

:'£Snt»ky-— ■' P»ln tins* ■ Gowchei. 

TsS July- weekday* 10-6 p-m. Sats. 

tO- 3 P-m- ~ — 


' ' 5 CENTUnV 

. SCULPTURE- Until 7th July- Mon - 
10-S. - ~~ 

^COUN-rStS: 19s Orientalist pnlnltm ^ — 

> Xe.t. FINK ART*. 2 i 'ffi& Str Eks2Wd 

: irftSKU, ^attreoto^re. June lilolv 6. 

■ ■ -Mon. to Trl. 10-6. / - 


in ibe HIGH COffRT 
'Chancery Division Canpatrie* Conn. In 

wlM90fI *s ■ 

' -the faihlight wmpast. 


NO. 001950 ot 19 7 8 

- .. _ SB.' 091K7 of.ffTS 

’ .OflX,TS tJMTrED 

■.Xm . . prewrrred to. *£ said ooun | 


excise of k j ^„ b SSr B the; 

:%41 -Mark "Laitf, London. Ewn 

ihii the, at 

i S T.S’ .cM gag 


.‘:.^ UI C,S a 3SoS. 

- "1. ' •' “ ; - King's Beam House, 

' 3ML Mai* 

London KOR "If'.iriantrt 

■y.<- sfeor for d>e ^ w 

.-v\ HDTE>-Amr ^ of the 

fS^eor aa she *«*“•** or ee** 
-Vatd Pennons mast ***•*, P oure *n 

£8Mko nmn state .o* I * a Bna ^ name 
the persmn or. >f a magt be 

add <* or bis or 

. fcsaaT t>y tlie-P®* 0 ® £*■ , 

,'v«*wd.w. if P*«5£\Jn3d» ate a&ove- 
. Jfc* to wOOcMSi ru»« oC locr. l£* e 
July V 1 * 

■ r;«Wfaoen gt **« aas 

MALL GALLERIES. The Mall. SW1 . SochrtY 
or Wildlife Artists T5th Em tuition. Mon,. 
Frl. 10-5. Sats. 10-1. Until July Ath. 

Adm. SOP. 

Soecialter Prlnimaklno Oroui*. BrtBftron 
Polytechnic. Mon.-Fri. 10-5; San. ID-1. 

Until July 4th. Free. 

OMELL GALLERIES. " Fine British and 
French M ODER N , n PA INTI NCS .W 

40, Albemarle Street. Piccadilly, w.l 

SBBtr p°l«W!!Si 

29 July. 

Watercolours and small oils. 27 juno- 
11 July. Mon.-Frl. 10-5 . 

THE PARKER GALLERY. 2 . Albemarle 
street. Piccadilly. W.l. Exhibition °l Old 
marine, military and woftlno and »■»- 
praohical prints and punting ana snips 
■nod els. 


< f ncofoo^ztitd In inc 
. Rem.Mk ^?f Sout h Alr«*J 

>IOTICE N ®I IC HEREBY^GIv!fJ tn« the j 

ksw*!Va 1 kh i zns-gij™- 5 

meat Company Limited will he he d^t 
and consider the 

financial statements tor the » i|en 


tM provisions of the company^ articles 

hereby authorised Ito allot ano Q 00Q 
Sllns^cd "ortjnjry u ^ ha c , ^,p“' v R jt S“b 

davs warra nts to bearer 

Holders ;'**£. mSw must com- 

*. l,hln ft* ll ti£ "reSokrttoM ol iiw 

Ply w rc?1 t , r? Wii-r ants to bearer are 

tjjtm »35raF ^2 

SRv-ajr S« #n b 2 ^member of the 

company. By onler of me Board 

A ” ol -'cw'sou™‘*f““ s S ; l Si T ,tS 

mt W- O- Nicol. 

Companies Secretary 


ecipiaj. . 

■line 26 . 1970^ — 

TIN — Barely changed. Forward metal 
opened on a Steady note at £6.850 despite 
the substantial rise In the Penang price 
with trade and hedge selling following a 
-smaller, than expected decline In the 
warehouse nocks. The price cased back 
to XS.M5 on the marntna kerb and fell 
further In (be afternoon to touch £6.610 
before reewrenn# on the bach ot some 
consumer demand which lifted n to 
£6.(35 on the late kerb. Turnover 1.153 

■ 5 ~ j sTnT i+ orj p.m. "t+nr 

TIN. Offlrta' — Unufflcia, — 

High Grade E C k c 

tSh 6750-80+52.5 6730-50, — 5 

i months. 6660-70 J+87.W 6630-50 L-1U 
ietxtem't. 6780 +« -.... 


C bah- 6750-70+52^6730-40 —10 

i months. 6630-40 +S2^ 6620-5 +2.B 
denfem't. 6770 +40 — 

^imlw BL J 61735 +BI — 

Now Yo rk! — -7 — 

Morning: Standard, three months £6.560. 
10, 40, 30. Kcrta: Standard, three months 
16.650. 55. 50. 45, 40. Afternoon: Standard, 
three months £6.630. 25. Kerb: Srsndard. 
three months £8.610. 15, 3*. 40. 35. 

LEAD— Steady m routine trading. 
Forward meiaJ traded within narrow 
tennis and was finally £317.5 on the laie 
kerb. The fall In warehouse stocks was 
broadly In Une vHh market r toe eta lions 
and had Hull- effect on sentiment. Turn- 
over. 3^25 tonnes. 

!" a.mi l+orj p,m7 1+ or 

LBAJJ Oflhnal — Unofficial I — 

i- I £ 1: ! £ 

Cash- 306.3-. 76 +.576, 307.5-8 1+1.26 

dmombiL. *16.5-7 r+.76 

ietc'im'nl 306.75 kM - I 

G.4.6pn. 31-35 1 ...... 

Morning: Cash £386.5. three months 
£317. KJ, 16, 16.5. Kerb: Three months 
£397. Afternoon; Three months £317, 
17.25. 17. 173. 1TJ5. -Kerb: Three months 
£317.25. 17. 16.5. 17. 1T.5. 

ZINC — Firmer although trading was 
feature less. Forward metal traded 
between £312 and £313.5 before dosing at 
the l a tter price on -tbe Inie kerb. Turn- 
over -2.456 tonnes. _ ■ rt- nil p.m. t+or 

Z1R0 Offlelal j — UnuCOtiai — 

_ ~ £ ■ £ i 

Cash S02.5-.76 +1.11 303.S5+( l+I.Bj 

1monUis_ol2.S-.75. +1.11' alS.o-4 j + 2.b 

s’ment-.. 302.75 I+-76I — 

JPrni.'WeMj - 1 ! 29-31 I - — 

* Cents per - pound. T On previous 
official dose. t!U per pIcnL 
Morning: Three months £313. is.5, 12.73. 
Kart: Three months £312-5- Afternoon: 
Three months EXL3.5. Kerb: Three months 
£313. 13.75. 

cents per pound) — Daily price June 23: 
140.47 (142.271. indicator prices June 26. 
15-day . average 134.00 033.42 1: 22-day 
average 134.22 tLM.OOi. 


Prices per tonne unless Otherwise 


Fresh liquidation Amoving a trou Me- 
tre i- weekend saw Rnbusias prices Inwer 
again at Ihe opening- reports Drexel 
Burnham Uamhert. Mixed Interest 
through the afternoon caused a general 
ebb and flow or values and at tbe close 
prices were £8.5 to £35 down on balance. 
Dealc-rv said ilu-re were no new factors 
to influence ibelr thinking bur noted the 
Brazilian weather situation gave them do 
cause for concern at present. 

Juno 96 

+ or 




July 5B.70 M.10i 5B.75-5B.I 

Xts-tenlaj-'- 1 
t-W ' + or 



£ jier inline 1 


1562-68 ■ 



November ... 





1225 40 i 

1180-90 : 


1110-70 . 


Sllvor was fixed 6.75p an ounre lover 
for spot delivery in the London bullion 
market yesterday at 288.2p. U^. cent 

equivalents of the Gxlns levels were: spot 
533.0c, unchanged: ihree-moath 543.1c, 
down &2c; stx-month 553.Sc. unchanged; 
and 12-month 576 Jc. up 0.3c. The meial 
opened at* 387t-»«tp f533-5»Jc> and 
dosed at 287.9-MS.9p (5321-534CI. 

dlLVKR Bullion + orj L.M.E 
par rising ” dare 

troy o*~ pricing 

M.E. U- nr 
lore I — 

,poi 868- 2 n (-0.75, 288.66p |+0.K 

3 month*- 295.9 p -0.E6, Z96.40p j— 0.4 
, jzHiulhx.. 303.7 ji — | — — — 

l£nwiiihii. 320.3p I ■*“ I 

04 E— Turnover 75 1JS1 lots of 10,000 
azs. Morning: Three months 29&2. 96.3. 
Kerbs: Three mo mbs 3K.4. Afternoon: 
Three months 2955. 5.9. S.6, 5.7. B6«-. 
5.3, 6.4. Ks-rbs: Three month* 296J, fi-. 


After a quiet daff with producers and 
consumers sidelined, prices rallied strongly 
on the dose, reports COl and Doff ns. 

Ye>tenia.v , rj + ,,r j Bu».iii«r 
L'lX.’OA j Oiore I — | lk ,n,? 

!+ 40,0 ' I BOO 

|l73S.fr8iiJi | + T3.5. l*0B.O- IfbO 

,r " ... If5fl.w6l.d +7.0 I7BB.0-I722 
diT “"-!T.il71tt.^1B.O + 10.0 I7IS.0-1B50 

Jojy” .16B5.iv95.fl ! - ; - 

11670.8-85.,' -S-0 ’1675.0^ __ 

""Saleg: ToiTorioloiMiM. 

International Cason Orsaaisarion 4U.S. 


issuea ut carpp rl u 0 n S.A. 

I Snares and u-=^ 1,s j BSt En > 

Oct****” STVm a * doceb 

MsnSiw" Bank N.A.. 

araaa i .rsiris; e magg a 
MS’bF- 1 ®* * sf “" Dn ”‘ 


( 1479-1436 
1 1256- 1206 
1 190-1 ISO 

'Sales: 3.378 1 2.406) lots of 5 tonnes. 

ARABIC A5 — Close <na business done): 
June lSfl.00-ft5.00. AUC. 166.00-75. BO. Oct. 
IS6.00-65.08. Dec. 148.0tV55.0fl. Feb. 1M.00- 
45.00. April 135.00-43.00. June 13300-41.00. 
Sales: nil. 

ICO Indicator prices for June 23 fU.S. 
cents per pound 1: Colombian Mild 
A rah leas 187-75 1 unavailable 1; unwashed 
Arabii-as 174.00 1 unavailable ■: other mild 
Arablcas 161.67 iunBTBllable>: Robusias 
145.00 (unavailable 1. Dally average 153.34 


market opened I0p higher and lo very 
thin trading barley saw some baying 
lnicresi but aggressive eommerdal selling 
Id the afternoon session eased values to 
dose unchanged to 5p higher. Wheat saw 
little trade and dosed 10p higher on Sept., 
Adi reports. 


TMtenlay'sl + or lyes-terrtay'w + nr 
M'nth cio-e | — { el-re — 

B4.95 1+0.10' 79.50 

Nut. 87.60 1+0.05' 82.35 

Jim. 80.30 j-t-O.DS' 84.90 

Mwr. 92.90 j 87.60 

Slav 95.55 |— O.05i 90.10 +0.05 

Business down— Wheat: Sept. 85.0frfr4.05. 
Nov. 87.EMi7.B0. Jan. 90.55-90.45. March 
93.03-93.00. May 95. 70-85.70. Sales: 45. 
Barley: SepL 79.70-70.60, Nov. K2.45-S3.25. 
Jan. 85.I5-84J0, March S7.S0-57.70. May 

IMPORTEU— Wheat: CWRS So. 1. Mi 
per cent, June £96 Tilbury: U.S. Dark 
Northern Spring No. 2. 14 per cent. June 
£84. 7S, July 0*5.00. Aug. £85.25 tranship- 
ment East Coast sellers: F1EC Feed June 
and July £97.50. Aug. £06.00 East and 
West Coast setters. 

Maize: U-S./FierR-li June and July 
niZl.SO. Aug. £99 JS (ranshipmcot East 
Coast sellers: Souib .\fnean Uihiu- June- 
adr. r»5.50 Glasgow; Souib African Yellow 
Jun--\ug. rrsoe Glassov sellers 

HGCA — Location ex-farm spot prices 
for June 26: Feed wheat— E. Suffnir £91! 00. 
Feed- barley— E. Suffolk £86.60. N.E. Scot- 
land £82 50. 

The UK monetary coefficient for the 
week beginning July 3 is expected to 
remain unchanged. 

MARK LA Mii— The market was 
extremely quiet with attendance purlieu 
larly scarce. New crop, however. Is 
beginning 10 attract improved tiun dr 
interest. Miffing wheat delivered London: 
July £105.00, Aug.-Scpi. 1 new crop' £91 jfl. 
Ocl.-Nav.-Dec. £95.50. Dcnaturable 
quality wheat delivered East Anslla: July 
ISfr.9). Sepl. £So.OO. Oct.-Nov.-Dec. £.tfi.75. 
Barley dc.hrercd East Anglia: Job* £53.00, 
Scdl £7b.OO. Oct.-Nov.-Dcc. £34.00. 

out the day. rlosintr quietly steady. Lewis rent, average EUp f+lJSi. Scotland: Prices per tonne unless otherwise 

and peat reported a Malaysian godown cattle down 3.6 per cent, average 72.72p ,5^,^ 

price of M2 (same) cents a kilo Oniyer. W 7.7 per cent, average 

jni#i 145. 5p f-o.2i. pigs down 19.8 per cent, 

—Li average 64.7p i-fO.Tt. June 86 + OT Month 

, _ . MEAT COMMISSION— Average fatsock * 18TB — era 

No.l \prtt*laTs Previous Bum new prices at representative markets 00 

R.S.S clow Close rinne jtme 26. GB cattle 72.47p per kg. 1 w. : 

I-A25I, UK sheep !47.5p per kg. est. if c w 

4 — ".41. CB pigs n.frp per kg, l w. t+0.9i. Metals I 

. . c « in » 7t u nn F,tt OR RH 7R F"5 ,a " d and Caitle numbers down Aluminium £680 £630 

i m m! RS'flAM'nS 6B - B - 75 3 t 5 per cenL. average price 72.45p t-0.23.: Free market (nisi 51. WO. '40 81090-10 

Aug ...... M.60-59.9O 56.BD-60.00i ~ Sheep down 9.1 per ceni. average I47.2p Coppercwh W Jmr.C703.Sb +Z.5 i£740.5 

j|y+jei^ 60.10 M.M-60.DO 60.00-M.70 <-7.4i: pigs np J.2 per rent, average 5 month* do. do. £723-25+3.0 £760.75 

Oct- 1>«H 62.55 M.95-82.1^ 62.50 n., p ,+0.9i. Scotland: Cattle down 5.9 Cwh Car bode. £898.5 + 3.0 £732.5 

Jin-Mt-- 1 64.26 c4. 0 M.Ofr :4 .d 5 ta.90 pc r average 72.22p i7O_.n1: rtcep 3 month* do. do. £719.6 +3.5 i£7S2.7B 

Apr-Jne. 65.55 t5.76 M.45-8B.W s5.0J tB.&5 d0WT1 ]0J per ■ rem. average 14a.9p f-B It! Q 0 |d Trey ox.SU5.12B -1.0 'SlBI.T2b 

Jl.v-»e|ii; H7.aO-67J5 M.SD-67.00j 57.20 puts up 27.0 per cent, average 6T.2p Cash £307.76 + 1J25.£304.25 

Out-L*w| 68.70-6B.76' 6fl.60-6B.65i t9.1O-fl8-B0 (— 03t. 3 iramthu £617 675+1 £314 25 

J an- II «n 70.20 70 25 700-70.06; 70.20 _ 5MITHFIELD Pence per pound 1 — Beef: Nickel ....!!!!!"!!"!!. £2.666 ......... ; 

Sales: l«9 ‘E071 lots of 15 tonnes and Scmufl killed sides 56.0 to 59.6: Utter Frt+MsrRetldft Lbi 51.05 iST.95 

11 i23i lots of 5 tonnes. hindquarters 73.0 to Tfl.0. forequancra t.q b ' 3.05 

Physical dosing prices 'buyers) were: 35.0 to 37.0: Eire tund quarters 73.0 10 ' 

Spot 53.55P l5S.75i: August 59.5p isamei; 76.0. forequalFre 35.0 10 37.0. Lwnb: L. on - 

Sent. 60 p. English small K.O 10 84.0. best quality Ptatlnum troy o,.. £133.0 120. 5 

66,0, medium 60.0 to 64.9. heavy 5S.0 Fiw — 0.7jL136.4 

t Or 1 at ljri r 62.0: Scotch medium 53.0 to 64.0. Imported Quicksilver f?61b.) 9123/26 +3.0 |S125-M 

Mil ABtAiX JtftAJL frozen; NZ PL 53.5 lo S4.6. PM 52.5 lo »Uror tmy ox.—.. 286.2p -0.75.L66Jp 

U.S. Markets 

1 017 A 1LJ linr K.0 : scotch medium 58.0 to 64.0. Imported . 

Mil Ad t Ail JUtAJL frosen: NZ PL 53.5 to 34.6. PM 52.5 lo nr lw ox. |8B.2p -0.7&Le6Jj‘ 

2-jar snssrsu; ss sw&flps, 

light volume, and remained steady, SN 

Commodi Q£i reports. "cOVENt'garOEN i P rices In sterling Wolfram Ei041hcif($i30|5a|.:...;...i»i3W7 

+ 5 1 *ZT I*r P^SRC “cm “ffiSSS si «“ »unww| 

I lime I — Lu oe stated I— Imported Produce: Druses— _3 mouths..... — ..£313.75+2.5^333.25 

■ CypnoU Valencia tales 15 Idlos 4.00-5 20: Ptviducera #5Sfl-«00 J... ,5530-600 

. 7ni niLei s j-n ik 1st jo jnjn s - African: Navels 4.00-4.6fl. Lamiws— oils 

S" isoT-iu +0 b! lii’IS’lSloD i ,aIlaa: cr00 KJ- #IM V™ : Srenut fFbit>..._. 9670,, +10-O.S6QO 

“ l"9B I-2S I io7h MM-M ia Spsma: trays 1.20-1.30. large boxe* 3.20- Cmundiiut £784 £749 

" S Offl - 4.40: 3. Alriem: 4.50-5J50. Grapefruit- Llntre.1 Crude iv). £368 ..£365 

Ami T ' 2 «QfSS^o‘S - 3 ^ “L , "?L S# b ll 0S Plllln *625* +28.096 IS 

At,MI • Si S . ri n TriM fig M 3 SO+ 10. Applw-Freneb: Golden De- ■ 

‘ dlfS-SiS-H l ‘ MD ,;d0,ls 20 ,l1 WS 3.00-2.60, J3S 3.30-3 90. 

Iif.OO-40-0 +9-B0 — Jumble boxes, per pound 0.16-OJ7: West q cp ^ 0 I 

Sales: frt • 151 » lots of 100 tonnes. Australian: Cranny Smith 9^0: Tas- Copra Phillip- 5470a +3.0 '9417.5 

man I an: Stunner Pippins SJM.80. Cranny Soyabean |D.S.).... 9Z7B.0SL — 4.1 9300.5 
C 1 !!/ -1 A E3 Smith fl.6U: S. African: Cranny Smith 9.00, 

IjLiOAlV While Winter Pearmaln 7.40-7.60. Starklng I 

. .. „ , Delicious 8^0-8.40. Golden Delicious 8.60, Rrainn 

LONDON DAILY PRICE iraw sugar) y or * s sjo-g.80: Chilean: Cranny Smith Bariev KEO t t • same ■ s '"°^ Clf for June- July- T.60-S.20. Siariung S.I0-SJ0: New Zealand: Home Futures..^ £82.25 ”lC79.95 

August shipment. While sugar dally price snirmer Pippins 163 fl.OO. 175 8.00, Cranny MjIib • | 

was fixed ai £l0frPD in05.50> Smith 9.20: Italian: Rome Beauty per French No. 3 Am£ K>3.3 -OJB<£106.5 

The markei remained within quite a pound 0.16. Golden Delicious 0.16-4.17, Wheat 
narrow range over the entire day. Small Jonathans 0.14. Pears— S. African: tar- Ko. 1 Bed Spring £96 £95 5 

n, I Ii.saes U<TV recorded on quite a low lonSi Pat+am's Triumph 9.50. Josepblneg Nn.2 Hucdwintre t 

volume, reports Csarmk ow. 8.00. Peaches— Spanish: si and art trays Sngliib MJIILue..|£105 +OJ £102 

'Mi'mr i :.0d-3.M): Italian: large 2.EO-tJ0: French Shipment t£ 1.903 l£ 1.8£B 

riel. ,V«s-tenl*.l >; pfevir«.« Bii-ine« Grapos— Israeli: Pperiette 4.50. Future Sept U.7S&3 + n.6 £1,767.6 

Comm.j 1.1'..- I Glove Dune Plume-Spanlsh: a kilos Japs 1JO-L40, Coffre Future- 

I,. I I Sania Rosa 1.40-2.40. Agricats— Spamsn.- tfl,4€lA—2fl.O £1,576 , 

1. — 5 kilos 2.00-2.50. Eananas-JamaicaB: per Cotton 'A' Index.... 72.15c - 71.2.-* 

£ ivr loiuie pound Avocados- Kenya: Puerto xubt«r kilo.- 58.25p -0.6 56i> 

Ang.... { ^B7.iB7 , S ^.70 9fl.6fr S 7.00 S 

^ °Dmch: T»; -- — d~~~ 

.Mar-ti . I I09.BO-Oa.70 l0a.B6 10.0frl 10.00-09.26 jgr^ U : 1J5; Egyptian: 5.60: Spanish: • Nominal. t Unquoted. k August. 
....1112-20- 12.40 ll2J5-lZ.fiuin2.a0-t2.IH PotaiMs-Cyprlot: 5.60: Britiany: wJ^AngusL nJnly-Sept. pJnis.Aug. 

Aii K I15.0U 16-06 1 16.80- 15.901 116.60 , M: JlWy . 3 « Tomato*- wJuLsf - aPertOn. 

u,i .....'H8.S0 19.25 ita.10-1S.3i.| .. 11fi.b0_ fiScR: SZifc 3.4frSS!T^ 

Sales: 1,661 ilJ277i lots of 30 tonnes. sey: 3?D: French: 3.00. Carrots— French : 

international Sugar Agreement: Price Neis 2.50: Nantes 58-11) boxes 3.50: Italian: TKmirEO 

for June it. U.S. cents per pound fob and 3.30: Cypriot: 2.60. Asparagus— Califor- IIXUILLj 

stowed (Caribbean port Daily 6.86. 15-day nian : Per lb 1.40. Beetroot— Cypriot : 

average 7.23. 221b 2.90. . 

Taie and Lrlo ex-refinery price for English Produce: Pouwow-Per 56-lb - 

granulated basis white sugar was £242.40 2.50-3.00. Leitnce— Per 12 0.60. Cos 0.80, FINANCIAL. TIMES 

isamei a tonne for home trade and Webbs 0.70. Onions— Per 56-lb 1.50-1.60 — ; 

Q ja.uo i U nii‘, lor export. Rhubarb— Per lb. outdoor 0.05. Cucumbers June £6|June Month agp< I»r«jp 

—Per tray 12 '34s 0 90-1.20. Mushroom* — . ! 1 > : 

Per lb 0.50-0.55. Apples— Per lb Bromley's g46.44]g46.33 £54.57 £53.22 

WOOL f UTTJRrS 8. JO-0.20. TooMioes— Per 12-Ib English (Base: July f. UWF^ioST — “ 

. ” * ^ 3.0M.30. Greens— Per craie. Kent 1.30, 

LONDON— The market was about cabbage 1.50. Celery— Per I2.-I9S 2.50- RFItTPR>« 

uncfiang<d in slienily better volume. 3.90; Strawberries— per FJb 0.36-0 20. ntuitn 0 

c Afrlpnn' NTavd 1 

- £ 1-00-21-5 « SJ-2'S-S Iialrtn: I'oo/lSta 

Ai+u '114. — 0.25 — 

June :i23.0d-S9.0 +0.60 126-69 

An^ii'X 156.00' +0. SO — 

Sales: ^ * 151 1 Ioib of 100 tonnes. 


volume, reports C. Czarnlkow. 

Migitr | 

Piet. ;T«s-«enlii.l’>| Previrm* Bn-*ines 

li-mni.i «.‘|i.i -■• I Clove Ltnne 

(.-•mi. * • 

1 £749 


+ 22.0 9615 

+5.0 ‘9417.5 
i—4.1 19300.5 

—...-I x 
... — ,£79.6 






J une £6[J une ZS. Month .pft T ■», m 

246.44j246.33 | 254.37 253,22 

(Base: July i. im =lMl 

Bache reports. 

1 Pence Per tatot |Ve*u-t*rys+ art 
fireuwMVwill rw j — 



J nl \-_ (234.9-11.0 | + U 25Ufr.UI.00 

i.i' Uiher [2+0.0-42-0 j — 

LlHCenir*r...pJ0.D-45.0 ! — 

1Ihh;Ii [216.0-48.0 j ...... _ 

lUV E46.0-4B.0 — 

July.. 046.0-48.0 | _ 

(•eifit+x. (247.0 60.0 j — 

April (24B.0 52.0 | — 

Sales: 6 im!' lots of 1S.000 kffos. 
SYDNEY GREASY — tin order buyer. 

Cauliflowers— Per 12 Lincoln 1.60-2.00. 
Broad Beans— Per lb 0.60-0.70. Peas— 
Per lb 0.12-0.13. 

Rubber output 
down again 
in Malaysia 

By Our Own Correspondent 


Jnne'EK I June 23 [MunUTagri 

149 2. 3 j 1494.91 1502 . 7 | 167 6.4 
iBase: September 18. 1931=160) 


D"v Junu June Mombl j»T 
Junes 26 2S iifjo j ago 

Spot — 365.65 363.52 359.39(393.82 
Futures 350.38 350.59 358.70(361.81 
(Average 197+15-26= IOO) 



DUNDEE JUTE— Firm prices r and f 
UK for Oct. -Dec. shipment. BWH E65. 
BWC £254. KWO £247- Tnssa BTB £2M. 
BTC £255. BTD £218. Calcutta goods 
steady. Qumaiiems c and t UK fnr June 
shipment: 19-ounce iit-meh W Bl. 7j+tunre 
£7 75, per 109 yards July £9.9S. £7.02. 
Aug -Sept IB.9S. b twills £ii «l. 
£27 08. £27.32 tor the respccuvi shipiiu-nt 
DiTiodB. Yarn and cloth vary anieu 


UNCHANGED opening M the London 
phnHrai mar fcei LUtlfi uueresi ihrough- 

SSSby ‘ creasy - iiu ortSTburar KUALA LUMPUR, June 28 r 

sefler bu S m, «. Mfc^ CorS:' PENINSULAR MALAYSIA’S J T ^ 

July Mj.2 -M i. ,14.1 5-M15, 2: ocl Mfl.r- rubber production fell for tbe • ” **° w 

“ i MKMii.5 D fl'Ii'. SSS*iiS!: * ird h consecutive month in ^^95 3.4^2 L41 933.2Ufi.fl 
364.0. 7fi2.0-ii»t.u. J: July 364.5-365.0. ml. MarCD, bringing tne cumulative f December 31. 1931 = 100) 

mi; get. .w. v:JKS. ml. nit. Dec. s«9.2- output for the first quarter to — 

3m.11. at!, .hi. Total sale* 5 . 357.0on tonnes— 33,700 tonnes 

- m x /v'cncnr a di rc lci,s t ^ ian comparable period Liverpool cotton, spot on] ship- 
MtA 1 / ▼ LUEIAdLLJ last year. "wni sales amounted in 93 tonnes, re- 

meat commission— a rorotg* fat-tiock This represents a decline of S/b^t Bomc”?nau?i^dr.vfti^ nr 7n 
UtffpSi'lJ W pCr C * nt - Production in Middle East qualirira. parilcuarlrT^iiRn 
k= *, To.oi-. UK Sheep lir.Tp pc-r March was S7.367 tonnes. and Turkiah. African styles algo attracted 

hr fM.’d.c w i-M'. cr 9i. xp per The decline in palm nil out- B,Ienuon - 

kA.Ivi. i-l f«* EM |a *d ami WbIm: cattle nm was reversed in March, With LOUDON PALM OIL— Close: June. July, 
numb-re up 73 p-r rent, average pnee ^ Hnrtinn inrw«L hv OR Aup. Sept. SM.OO-339 no on 

7i4R P .-o.2t«: sn^en up w.9 De r cent, production increasing by 28 per 290.0ft.3M.99. Nov. moMis.M. Dec mooo- 
iverase 151. Sp l-Ui! Pi«a up LI per Cent tO reach 9S.000 tonnes. 319.00. Jan., Feb, unquoted. Sales; Nil. 

LIVERPOOL COTTON. Spot on] ship- 
ment sales amounted to 93 tonnes, re- 

Wheat loan 
rate rise 
aids market 

NEW YORK. June 36. 
METALS WERE featureless with no major 
Incentive. Soyabeans firmed on basis of 
a positive export figure, while the wheat 
loan rate was increased by 10 per cent 
IndJRg support to that marker. Platinum 
was up 64 op speculative buying. Sugar 
and coffee trading very light. Bachs 

Coca a— July 148.90 1 147.20), Sept. 141.90 
fl4L93>. Dec. 139.65, March 133.35, May 

131.10. July 139.00. Sept. 126.95. Sales: CS8. 
Coffee — " C " Contract: July ld.00-16ff.60 

f 160,901. SepL 147.30 (145.83 1. Dec. 136.50- 
137.00. March 12R.BO-m.25, May 1X3.38 
DOtn., July 119.00-120.50, Sept. U8.S9-U7.50. 
Sales: 280. 

CoMei^-June 50.50 f 58. 301. July 59.50 
(SO. 401. Aug. GO. ID, SepL GO. 70. Dec. 62.60. 
Jan. 63.10. March R4.10. May 65.10. July 

66.10. Sept. 67.10. Dec. 68. BO. Jan. 69J0, 
March 70.10. Sales: 3.705. 

Cotton— No. 2: July 5S. 70-59.00 1 59.07), 
Oct. 61.90-62.00 (62.061. Dec. 63^5-63.45, 
March 84.40-64.50. May 65.15-«.50. July 
65.75-66.00. OcL 65.00 bid, Dec. 64.75 bid. 
Sales: 3.250. 

‘Gold — June 185.10 U85J0). July iSS.lfl>, Aug. ISftJtO, OcL 369.40, Dec. 
192.40, Feb. 195.49. April 198.59. Juno 
201.60, AUK. 204.70, OCL 207.89, Dec. 211.00, 
Feb. 314 JO. April 217.40. Sales: 3,995. 

tLnrd — Chicago loose 22.50 mot avail.). 
NY prime steam not avaiiahlc- 
f Mails— July 256}-2584 i 357Ji. Sept. 257- 
257i 1 258]|, Dec. 25K-25W. March 266!, 
May 270!. July 2712. 

§P [at In am— July 245 jO (242.401, Oct. 

247.80- 246.80 i 244J»i, Jan. 250^0-251.00. 
April 253.B0.2M.80. Jdy 256.19-266.30. OcL 

258.80- Jan. 2G1.90-262JS. Sales: 

ISIIvar— June 533.00 1 530.70 July 533 JO 
tfiSl.BOi. Aug.' 537.10, Dec. 552.40, Jan. 

556.30. Marefc 564.60. May 573.30, July 

582.10 . Sopl 59LJ0. Dec. 004JO. Jan'. 608.40. 
March 618.00. Sales: 7.108. ' 

Handy and Barman spot 532.50 isamei. 
Soyabeans— July 691.693 (G79i. Aug. 683- 
684.166911, Sept. 6691. Nov. 641-6421. Jan. 
64a. March 652. May 65*4541, July 656. 

Soyabean Oil — July 26J5-2E.30 1 25.55 1. 
A US. 25.Sfr-25.70 1 24.971. SepL 25 -20-25.15. 
Ocu 24.40-24.45, Dec. 23.75-23.65. Jan. 23.35- 

23.30, March 23-15, May 23JOk23JtO. July 

I] Soyabean Meal— July 174 JO-174.70 
(173.30), Ang. 175JO-175.00 (173.90 1, Sepl. 
173.59-175.00. Oct. 174.00. Dec. J 71.50-171 .90, 
Jan. ITLTfr-mjfl. March nf.0frl74.30. May 
174 50-175.00, July 175.00-175.00. 

Sugar — No. 11: July fl.^8 tS^ft.^Sept. 
7.15 17.09 1 . Del. 7.27-7 J8. Jan. 7.60-7.73, 
March 7.98-8.00, May 3.15-8.16, July 8.35, 
Sepl. 8.60. OCL 8.72. Sales: 3.280. : 

Tin— 560.00-509.00 uom. (55fi.7fr57O.0O 

nom.». * 

— Wheat— July 321 (321*1. Sl-pi. 3236-33* 
■3231 1. Dec. 330-3301. March 331J. May 
328. July 319*. j 

WINNIPEG. June 26. tlRye — July 106.30 
bid 1106.00 bidi, Oct. 105.80 asked 1 103.507 . 
Nov. 103 jo bid, Dec. 105.DO bid. May 

ttOats — July 74.70 bid l78.50i, Oct. 74 » 
bid 174.50 bid I, Dec. 72.70 bid, March 
72.40 bid. May 7150. 1 

treartcy — July 74.40 bid (74J0). OcL 
74J0 bid t75J0». Dec. 74 JO bid. March 
74 . SO asked. May 78.00. T 

fi$Flax5<Kd — July 235.00 bid (234.48 btdj< 
Oct. 240.00 asked 1 237.901, Nov. Mi. 30 
asked. Dec 235.80. May 244J0 asked. * 

2!) Wheat — SCWRS 13-5 per cent, protein 
content eif Sl Lawrence 169.22 1 163.441. 

Ali cents per pound ex-warehouse 
unless otherwise stated. ’ Es per troy 
mincce — 100 ounce lois. t Chicago loose 
ss per 109 lbs— Dept, of As. pnccs prfr 
vious day. Prime steam lob. NY bulk 
tank cars. 1 Cents per 59 lb bushel e£- 
u- arc house. 5.0IW bushel lots . $ Ss per 
iroy ounce for 59 or units of 99 9 pefr 
cent purity rieliverc-d NY. 9 Cents • pgr 
troy ounce cs-wan house. II Sew “ B " 
i-cmran In Ss a st^n ton lor bulk tola 
of 190 shori tona delivered f.ob. earn 
Chlenco. Toledo. St. Louis and Alton. 
** Cents per 69 lb hushel In store. 

4 1- Cents per 24 lb bushel, tz Cents per 
48 fb bushel cx wa rehouse. {(Cents wr 
V! lb bushel ex warehouse. 1,099 bushel 
Iols. 11 SC per Loone. 

•-■••’ v^vrv. 

V>; •" :: Finaiw^l. 


Gilt-edged lead fresh retreat in uncertain markets 

Falls to f while 30-share index loses 3.3 to 453.0 

Account Dealing Dales 

'First Declara- Last Account 
Dealings tlons Dealings Day 
Jun. 12 Jun. 112 Jun. 23 July 4 
Jun, 26 July 6 July 7 July 18 
July 10 July 20 July 21 Aug. 1 

* M Hew lime " dealtnns may lake place 
fram 4 JO *m\. two business days earlier. 

Worried by the general un- 
certainties, investors continued to 
hang fire at the start of the new 
Account yesterday and the result 
was a further deterioration tn 
both British Funds and equities. 
With few major pointers 
scheduled this week, the funds 
were reflecting concern about the 
trend in short-term interest rates 
not only in the U.S. but also at 
home. Inflationary and election 

pressures were also being 
registered, a combination which 
led to the loneer-dated issues 
showing losses to i during the 
early session. 

Views that part of the selling 
was necessary jn order !o finance 
today's call of £30 on the long 
tan Exchequer 12 per cent 20t2-17 
were not conclusive but selling 
pressure on the stock lessened 
considerably. Attempts to rally 
Tacked substance until the late 
afternoon business when the 
shorts artracted bear covering and 
eventually regained i or so to 
close a maximum of 3 down on 
the day. Longer maturities 
followed and similarly reduced 
their losses to 1. 

Equity markets went lower 
with the fundc and recovered in 
accordance with that sector. 
Selling was of little consequence 
— bargains marked at 4.394 were 
The lowest for the start of an 
Account since January 3 — but 
genuine buyers refused to be 
drawn by the cheaper price levels. 
The FT Industrial Ordinary share 
index was 5.0 down at the 1 p.m. 
calculations but closed a net 3.3 
easier at 453.0, its lowest since 
Anril 17. while the falls to rises 
ratio in FT-quoted Industrials 
widened U> 3-to-l. 

Influenced by the latest set- 
back in rhe main funds. Corpora- 
tions lost as much as a full point, 
while recently-issued scrips such 
as Son then d-on -Sea 12 per cent, 
1987, and Barnet 12J per cent, 
1987 (both flO-paid). were around 
} down at 8} and 9? respectively. 
First-time dealings were unevent- 
ful in three new Preference 
stocks, all issued by way of 
capitalisation to Ordinary holders: 
Allied Leather 9 per cent closed 
at 90p. while JB Holdings 10 per 
cent settled at 97p and F. Miner 
11 per cent at 95p. 

Notable only Mr a marked lack 
of activity, the market in invest- 
ment currency drifted lower and 
the premium gave up a point 
finally at 110 per cent, after 1091 
per cent Yesterday's SE conver- 
sion factor was O.PdSS ftj.666fi). 

After a fairly busy morning 
session, interest in Traded Options 
later waned and subsequently 
only 100 contracts were added to 
the mid-day total of about 256. 
Grand Metropolitan with 118 con- 
tracts done, provided nearly a 
third of tiie modest total, while 
ICI followed with 76. 

insurances easier 

The threat of an insurance 
exchange similar to Lloyd’s of 
London being established in New 
York additionally unsettled 
Insurance Brokers which closed 
with falls that ranged to 5. Minet, 
183p. and Willis Faber. 247p, were 
both that much cheaper, while 
Alexander Bowden gave Up 4 to 
15Sp and C. E. Heath declined 5 
to 240p. after 237p. Leslie and 
Godwin, however, displayed 
resilience and edged forward a 
penny to a 1978 high oF 107n on 
renewed bid speculation. Else- 
where, Pearl lost 8 to 220p among 
life issues where Britannic 
relinquished 4 to 156p. 

The major clearing banks 
moved within narrow limits and 
closed with modest losses. Else- 
where, Hoag Kong and Shanghai 
shed 6 to 305p but Standard 
Chartered held firmly at 385p in 
front of today’s preliminary 
results. Mirroring the dull trend 
in gilts. Union lost 10 to 305p 
among Discount Houses. Profits 
in line with forecasts and a pro- 
posed 20 per cent scrip-issue 
helped Cattles Holdings harden 
13 to 35} p. 

Leading Building descriptions 
encountered small selling and 
finished with modest falls. 
Richard Costain, ex the scrip 
issue, opened 4 lower in an 
attempt to establish a trading 
level, but remained untested and 
ended that much down at 176p. 
John Laing A, 17Qp, and Taylnr 
Woodrow, 358p, also eased 4. but 
occasional speculative buying and 
a little option business left 
Norwest Holst a couple of pence 
to the good at 98p. Buying 
interest also developed for 
Francis Parker which added J to 
16Jp after touching a 1978 peak 
of I7p. Elsewhere. Wettern 
Brothers shed 3 to 95p in res- 
ponse to the Board's rejection of 
the offer from W. J. Glossop. 
while Modern Engineers of 
Bristol lost 2 to 35p on small sell- 
ing in a thin market. 

Sporadic small offerings in an 
unwilling market left Gussies A 
and Muthercare down 4 apiece 
at 262p and 152p respectively. 
House of Fraser relinquished 3 
to 130p and Marks and Spencer 
dosed a penny lower at I39p. 
alter 138p. Elsewhere, modes I 
demand in a thin market lifted 
Fortnum and Mason 20 to 675p. 
while Walker and Staff hardened 
a penny to 24p in response to the 

higher annual earnings. Empire 
declined 4 to 160p as did Austin 
Reed A to S8p. 

Thorn were notably dull at 
317p, down 7, in idle Electricals 
where Electrocomponents edjjed 
forward 2 to 430p in front of 
tomorrows preliminary figures. 

Alter absorbing early profit* 

taking, John Brawn moved for- 
ward on further consideration of 
the better-than-expected annual 
profits announced last Friday and 
closed 4 up at 37Gp. Other 
Engineering leaders, however, 
failed to follow and drifted easier. 
Elsewhere. John Booth (Bolton) 
became a late casualty at 30p. 
down 4. In reaction to the sharp 
contraction in preliminary profits. 
A weak market of late following 
the poor interim figures. Westland 
Aircraft cheapened li more to 
30p on reports that the group is 
on tbe point of sending dismissal 
notices to 2.U00 workers at its 
Yeoril helicopter plant Staveley 
Industries, 25op, and Wulseley- 
Hughes, ISOp. fell 7 and 9 
respectively, while Wh ilehouse 
dipped 5 to Sop. A Press pre- 
diction that the company will 
report bumper annual results 
today helped Tecalemit to pul <m 
2 to 135p. while Fluid rive, at 80p. 
recorded a Press-inspired improve- 
ment of lj. G. SI Firth were 
wanted at 261 p. up 2j. and Green- 
bank hardened a smular amouut 
to 49p. 

fndiisrial leaders. Glaxo led the 
relreat at -Vklp, do’-'ii 12, while 
Unilever declined S to 512p. 
Beechani lost 7 to F*iOp and 
Counter ga*c up 5 In 19 IP- A firm 
market of late m response to 
excellent results and a proposed 
100 per cent scrip issue. Pilking- 
tun receded fi in 520p xd. 
Secondary Issues were featured by 
a further gain of 3 to 69 P, after 
7Qp. in Toyc on continuing bid 
speculation, while buying in front 
of today's results helped Renwlck 
add 4 at 45p. A combination of 
investment and speculative 
demand helped to bring a gain of 
2 to 79p, after 80p. in Bath and 
Portland. Barr and Wallace 
Arnold Trust “A” improved 3 to 
103p. Nnrcros touched fi-ip follow- 
ing the record results before 
closing a fraction dearer on 

balance at 84Jp. I.C. Gas. on the 
other hand, lost 10 more to 338p 
on further nervous offerings in 
front of today's results and 
Sotheby Parke Bcrm-t at 27Sp. lost 
7 of the recent rise which 
followed publicity given to it's 
record Von Hirseh art auction. 
Lower profits unset Her] Whitterofl 
which shed 5 to 207p. while Low 
and Bonar came on offer at I67p. 
down 6. 

Motors and Distributors showed 
the occasional modest loss. Dowty. 
which reported preliminary 
figures on July 21 last year, 
reacted 4 to ltMp. while similar 
falls occurred in Lursis Industries, 
293p. and Appleyard. Slip. Henlys 
shed 6 to 120p ex the rights issue, 
white the new nil-paid shares 
oppned at 16p premium *W*»re 
drifting easier in liehr trad ine for 
h close of 12n premium. Against 
the trend. Hanger Investments 
improved 21 to 4np. 

Renwick better 

Fortnum & Mason np 

I Cl typified market conditions, 
easing 4 to 36Bp after 365p, bur 
Fisons held steady at 360p aided 
by favourable Press mention. 
William Ransom shed 10 to 190p 
in a restricted market. 

In Televisions. Trident im- 
proved £ to 46p, after 46fp. on the 
interim profits and the chairman's 
optimistic remarks. 

Leading Stores began the new 
Account on a quietly dull nn-fp 

Comment on last week’s 
dividend omission and profits set- 
back created a fair amount of 
business in J. Lyons which closed 
another 2 cheaper at 72p in 
lacklustre Foods. Spillers finished 
a shade easier at 28p. while l‘aie 
and Lyle. 172p. and Associated 
Dairies. 220p. shed 2 apiece. Of 
the isolated firm spots. Uighgate 
and Job hardened lj to 47p xd 
and Meat Trade Suppliers moved 
up 2 to S3p. Supermarkets finished 
narrowly irregular. Following last 
week's activity generated by the 
results, interest in Teseo subsided 
and the shares closed a shade 
easier at 42p xd: sentiment was 
not affected by news that the 
former chairman Mr. Hyman 
Kreitman had substantially 
reduced his shareholding. 

Political and economic uncer- 
tainties continued to deter invest- 
ment interest in the mKcellaneous 

Newspapers drifted lower on 
lark of huvers and a few small 
sellers. News International. 245p. 
and Thomson. 230p. hnfh cheap- 
ened 5. bin Oalfv Mail A firmed 
3 to 298 o' the last-named »«= due 
tn announce annual results next 
week. Elsewhere. Associated Rook 
Publishers. 230n. gave back 7 of 
Friday’s speculative rise of 14 and 
Mills and Allen lost a like amount 
to I75p. 

Pronerties gave ground in thin 
trading on a revival of dearer 
credif fears but closed slightly 
above the worst. Stock Conver- 
sion cheapened 10 tn 228p. In 

contrast. Avenue Close mirrored 
Newspaoer comment and firmed 
44 tn 75p xd and. awaiting the 
outcome of bid discussions with 
an unnamed Continental group. 
English Property hardened frac- 
tionally to 44p. after 441 d. Bell- 
wav Holdings added a penny to 
B3r> no continued speculative 

Increased London selling 
pressure left British Petroleum 10 
easier at one stage, but the close 
was only 6 lower at R44p. Shell, 
firm la«l Friday on its 24.5 ner 

cent stake in the British Ptetionil 
Oil Corporation's concession and 
hopes of an end to dividend 
restrictions drifted 7 lower to 
540p on lack of buyers. Small 
offerings left Lasmo •‘ops’’ 7 
down at 318p, while Oil Explora- 
tion suffered further profit-taking 
and shed 10 at 230p. 

Sine Darby, 3 better at a 1978 
peak of 89p, provided an Isolated 
firm spot in otherwise little- 
changed Overseas Traders. 

Investment Trusts drifted gently 
lower, mirroring general market 
conditions. Jardine Securities, a 
firm market of late, lost 4} to 
13 lip, while continuing concern 
about the success of the Barclays 
Bank Post Office I>»nsion Fund 
bid dipped 4 from Investment 
Trust Corporation at 257p. In 
Financials, Britannia Arrow 
finished a penny harder at lfijp 
helped by Press comment 

Apart from Common Bros- 8 off 
at I22p hi a restricted market, 
losses in Shippings were limited' 
to a penny or two. 

Awaiting today's interim report, 
BAT Industries Deferred attracted 
only a small business and closed 
2 easier at 274p. 

Guthrie came to the fore in 
Plantations, rising 13 to 285p in 
response to small buying in a 
restricted market 

Australians firm 

Australian mining issues 
extended Friday’s rally as a 
strong showing in overnight 
Sydney and Melbourne markets 
prompted Jobbers to mark up 
prices from the outset of business. 

Thereafter, renewed specula- 
tive and investment demand 
enabled them to move further 
ahead and close at the day’s best 

Rises were widespread and 
often substantial. The two 
Australian partners in the Ashton 
venture exploring for diamonds 
in the Kimberly region of 
Western Australia both enjnved a 
good day Northern Mining 
advanced 17 to 107p — a two-day 
gain of 27 — while the maior 

participant — Conzfne Tttothito-. 

climbed &-to 2S8P- . 

Base-metal miners all gained" 
ground. Western ' Wiring, - 
BH South. 11 4p and North Broken . 

Hal. I25p, registered rises ‘ of -, 
between 5 and/7 while BougahF; 
vffle hardened S to 117p. 

Favourable Press ,ra _ 

lifted Metals -Exploration 
to 294. to Uranium^ Pan- 
continental added i at £13 And 

EZ Industries ctosedS flrmeriSSSpX 

Among South African fssuKtffe 
Beers continued'. to attract aigoodf 
deal of attention; after p— 
at 41ip and touching 404pJ 
ing London selHpgi the prme 
picked up to close 5 cbeaper'dri/ 
balance at 407p followm; hews of- 
the extension of the- life or -thej 
company’s Premier diamond mfct#.. 

On. the other' hand. SouijF 
African. Gold shares', tehaed’.-t^ 

drift in subdued trading reflect^ 
the easier bullion prioe - whjtdr 
dosed $1 down-, at S185.125_ pen 

Losses- however, were ’teltefcejg?, . ______ 

a ted by some mines going ' NEW 

the June dividend payments. ■'itv 
Gold Mines index relinquished SAss™* 
to 158.1 but the index, in cum-V^naiMd Mwlffl? znd'CaM tar- 
dividend terms, was only -L0-- -. NEW EIGHS (24> 
easier at 160.5, - ■ : . _ . , _ «««*»* 

London-based Financials - A merica wsfo 
generally a few pence srweiw 

svmpathv with UK equities. whbaZFrmcte Parker 
South Africans marked time ^ . 

Elsewhere, Anglo T2ri{teB£ i _ o^PKnyrjAr«n : v»o«icr m 
nevelonment advanced 21 mtrreiti;,* 0 ' 5 A 
2-ifin for a two-da v gain qf-.jSfe-cwmmro* 

Sabina came in for Irish . 

Canadian support and closed,^ -• 

higher at 68p. 

RISES AND FAlLSr ^ nMC ' n ' 

British Foods ..... 
Ctms. Dom. 

Fvretqn Bands 
Indni «rteb 
Financial and Prop 


Plantations ....... 


Rerent Issues ...... 




Den om in a- of Closine Change 
Lion marks price (p) on day 

BAT* Dfd 

De Beers Dfd. ... 



Shell Transport- 

Grand Met 


Brown (J.) 


H.K. & Shanghai 

Lloyds Bank 

Land Securities .. 




25p 14 

R0.05 12 

£1 11 


dealing dates 

SHK2^0 B 
£1 6 

50p 6 

25p 6 

25p 6 

25p fi 




Rnancial Management 
for the 

Non-Financial Executive 

LONDON JULY 10-21 1978 

The increasing amount of accounting and financial management needed to 
run a modern successful business is placing great strains on middle and senior 
management not trained in accountancy. To meet this problem, the Financial 
Times and The Gry University Business School, of London, have arranged a 
nvo-week course entitled ‘Financial Management for the Non-Financial 
Executive" to be held in London on July 10-21, 197S. 

This course was first held in 197T and attracted substantial support from 
Britain and abroad. The suggestions of tutors and course participants in 197“ 
have been taken fully into account in preparing this year’s programme and the 
sponsors believe its value will have been increased still further. 

The course will be headed by a former finance director of a ma;or 
industrial company and a merchant banker, and the panel of 22 distinguished 
lecturers are drawn from universities, commerce, accountancy and banking. The 
participants will be divided into study groups of fifteen people headed by a group 
leader. The ten days of instruction are broken down into lectures, case studies 
and various group exercises so that the students take an active part in the 

Apart from being a thorough two-week programme of studies the Summer 
School also otfers an authentic insight into the workings of the City of London and 
provides opportunities for making useful contacts with people and institutions. 

The list of distinguished speakers ine hides: 

Mr N. Goodison Chairman, The Stock Exchange Council 

Mr A. VV. John formerly Finance Director, Unigate Limited 

Air S. R. Harding Director, Hill Samuel & Co Limited 

Mr R. T. Fox Director, Kieinwort, Benson Limited 

Mr R. T. Esam Head of Group Taxation and Corporate Structure 
Royal Dutch Shell Group of Companies 

Mr D. C. Hobson Senior Partner, Coopers & Lybrand 

Mr R. S. Napier Group Treasurer, Fisons Limited 

Mr R- C. Wcstmacott Assistant Director, Barclays Merchant Bank Limited 

To The Financial Times Limited, Conference Organisation. Bracken House, 

to Cannon Street. London EC4P4BV. TeJ :oi- 2 t 0 43S2. Telex ravjjpFTCONFG. 

Pic jsc send me further details ^/INTERNATIONAL SUMMER SCHOOL 1978 

343 won 

Es'rct-* ( Cl>*4 n#: • Clifringi 

0|(mn | tire oft«r TVI. • offer ■ Vo I 


I offer 1 Vol. 





l.'om. I* won 
Ci mu. Unu-D 
Cow-. Until . 
Con-. lii.ili! ! 
Cnurtaijlil. ; 
Omruuil.l. . 
Cou rumble , 
Cuurumlda j 

GKO • 

ij BO 

Grand Mel. ' 
Grand Sid. . 
Grand Met. ! 



ICI 1 

LmikI Sc.-m. j 
Lead See-. 1 
l* D>( Stt*. j 
Mnriik i sp. 
Mnrkb & 
Murk*, i *•)., 

SI, .11 


1 _ 

1 12 


i 132 

- ! 

1 — 




i — 




1 — 






. Z 



! 5 

5I S 




• — 





! 12 




3 ; 





1 — 



13i t 

— - | 




























14 'v 



































j 4 





I - 























1 - 

25 , 





11 ; 





196 ! 




Figures in parentheses show number of 
stocks per section 



0 6 <: e& JSrniirall (C.U.I._ 

5.7 |»v |«* iinnitJierm 

>t- 55 Ttisme* Ply«i>»i 


too F.r. - 

• - u*. 

L-98 CIO 

• * F.l*. 


- * F.l*. 




• * F.r. 

C99 lk>0 

a t j 

W' »: j» 

7 8 'l.'sini' 

■ • K.l*. 

■ ■ F.l*. 

: 109 F.K. 

- • r.i-. 

E98J 4 £10 
L99 tlO 

tijj r.i*. 

esoh cso 

— • ,.j\ 

L'98i« £25 

31;, 'Aanr, tl'.iri. V«r. I!«ie lib. laSi 

90 |. .AIImmI CoiSfci-r Sri I'm 

tf4| |\ul.rtib<ive t*n«li. l‘rt-1 

-4l«!itaniei I'iit IhMi. Wf 

31*11 -Clive Uiii.iiiil Cum. Pref 

CrrtWi l?I.C>fli. 1‘riil. 197*1— ?.t . 

9(|. jttawhir-i'^rnin. f*tvt 

KU jhdlu b»ir-_'h iCItv t «r. llbl.- \M>.. 

lOU h-ix Wan-rtu Knl. I'm. 19U 

I4DU1 !F»lrrlew b»l». 1 J.Bb? Di-h 

**9|. Grrenflehl Milleit tO^luni. l*wf. .. 
*bt_ .rai-nwi li i lb mi. B--n-. on 1 1 Uii|. 

97p 4B BuliJinp* 1% Prvf 

" ■l.ilierly X t**. I'n 

9bp -Miller (F.l |1^ Prvf. 

Olp Xs>s> -'>» wiRt-uta 95, Oum. J*re( 

H’ituni -.if Linn, l-n 

10s 104 %. Uum Pn*f 

PN 'Ijniek iH. X J.. 10% I'rf 

!09p l.lWiiH«r» Sn» II?. Pi»>( 

1 >4.5 . a. 841'. 4.5 

I 'ft 2.64, 5.01 2.5: 15.S 
.... ii2.0 ; 2.5l 8.9: 7.4 

K7|.;anilili>t Auhvn Ciuii. F«vl 

fit .'M«i(lienH-rai-50i 1??, J5e.l, It VI 

4L( tsuulll. 121? fatal. tSj*j ...... 

H >L‘ei4J» iDlCnv. Cn-_ Ln.lUU 

i7ivTyne £ Wret 12?. Knl, 15H?K 

‘tniWvte P.Orr-i- I 5 Pr»-I 

atSiiWesl Kent W«lM- IS? D*-k I55fi 

J6 5 

15 9 111. 

; 97 |,j . .. 

100 \-.-j 

— I Upn-’J 

1 99|*|— lj 

. 97|i 1 

Ilou I ...... 

• 95p I 

’ S’ii 1 

99 I 


1 9 I< -so 

1 96 *i 8 

I 47S«— 

; 99 1’ 

■ 245, -lj 




British Government June 

i^i. 1 


Oh«lnul-l- ra 

^ Ini.. 1 iWk 

I’rkv — 

^ Z ■ j Hi^ti | Urn ; 

r: j 

7.7 1 1W 17b »r*Tir CbemiraH... — ........ — .. , J 189 j+ J 

18l& UjHn' 10|-ui'Urtli*»b Tnr Fnklucta I | 

nO I j- .Central .M^nulscLmtnc.-. 541g|— i, 

21-7] lOOlgl m :|Wi*>n Fsr* irwls. 96 ) — 3 






ZS:» 1 1.1 j tU |tWirrteir l£«w _J 111 j 

18, '0! aipin. U^ni'lUrlwellH lapmi-si 

— ■ lopm 1 lpm|Btnlra 18pm, 

I9»7. to • - J-» iHn-liif 90 +1 

{4a ’ F.£*. 16 C ZiT! Ina * Ij* !il«rtr<fen • 154 J~5 

*9 \n 5 7 28(71 t* 4 P»V > «F ni -Rv nMn 'L*G 4 12 {iuij-l 5 

150 Nil — - 1 i4imi ! IP|ii ,u,: Irish Inlemt* 18ia|uul .. .. 

•Si .Mi 7 7 28(7i M>||II>: ui|>m 4hrirhLre |tals|>»i' 

m ^ • r.i'. *j d iiii! * i - 

N1i.1u11.U8i Kin daiv. ueiMUy to' lur Irw? ol stamp ourv. u Kiaiuvs 

U^J oil iuumk-ci^ vuiUMie. g Assumed dieWincl ana yieW. 0 Fonsumi Ulvniuna: 
curvf iw'we un prvviiHLH \ ears earuwita. * DiviOcoa and yield (used un pi-<wih^rit, 
or uibci viiiii^ 1 oiiuum lot IV.S u Gross. 1 Fusurre h^uuk-U. I Cure, yrav 
iur LtJMvtsruiui: vi jurt* not daw rdrUtina tw dividend or ranking, ouiy fur resinckii 
■jivUvUJa. ; HLibUW pnee W uuOiif. W Kcmx Uultss tfbtrwrat; iitditJicd 1 
ui .iwfcr.' qoiitrm is huMi-ra oi urdman shares «* » " rvdm.r ’taw 
D-j vvjv U f idDilali^Uon. »* Mlmnnim lender price. Ll “ 

iu Lunneeuoc m iih reor^amsauau atefUCr or iske-oei-r InlrMUCtW 1. IN. mil 
10 termer PKlmavt lumen m Mimmeul Irtiem iar mUs-oaldc • Pruviwuiul 
nr nanly-PMid ailotmeci UUera. * With witmU, 

1 larfes 1 

f .Yield 

1 Ku. .1 

r % 

57.4o [ 67143 | 67.29- 


51.52; 51.68 1 52.16 


70.56 ; 70.53 ' 71.17 


• “■ : 

r ■ 

tRtttewil-n vlcld. Hlqta Md Inn rKsnl. taan dotes and values ul EMstftKtt Obmd'.k^